Pioneer Bancorp, Inc./MD

Previous wording

Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. No assurance can be given that the future results covered by forward-looking statements will be achieved. Certain forward-looking statements are included in this Form 10-Q, principally in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” In addition to the factors described in Item 1A – Risk Factors, factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to:

Current wording

Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. No assurance can be given that the future results covered by forward-looking statements will be achieved. Certain forward-looking statements are included in this Form 10-Q, principally in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” In addition to the factors described in Item 1A – Risk Factors, factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to:

Previous wording

Management of the Company considers the accounting policy relating to the allowance for credit losses to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain, including making significant estimates of current credit risks and trends using existing quantitative and qualitative information, and reasonable and supportable forecasts of future economic conditions, which may undergo frequent and material changes. Subsequent evaluations of the then-existing loan portfolios, in light of changes in economic conditions, new information regarding existing loans and other factors, may result in significant changes in the allowance for credit losses in those future periods. For example, changes to the FOMC’s forecasted civilian unemployment rate and year-over-year U.S. GDP growth could have a material impact on the model’s estimation of the allowance for credit losses on loans. An immediate increase of 100 basis points in the FOMC’s projected rate of civilian unemployment and a decrease of 100 basis points in the FOMC’s projected rate of U.S. GDP growth would increase the model’s total calculated allowance for credit losses on loans by $1.3 million, or 6.0%, assuming qualitative adjustments are kept at current levels. While management’s current evaluation of the allowance for credit losses indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. Additionally, changes in those factors and inputs may not occur at the same rate and inputs may be directionally inconsistent, such that improvements in one factor may offset deterioration in others. Going forward, the impact of utilizing the CECL approach to calculate the allowance for credit losses will be significantly influenced by the composition, characteristics and quality of our loan portfolios, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to our reported earnings.

Current wording

Management of the Company considers the accounting policy relating to the allowance for credit losses to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain, including making significant estimates of current credit risks and trends using existing quantitative and qualitative information, and reasonable and supportable forecasts of future economic conditions, which may undergo frequent and material changes. Subsequent evaluations of the then-existing loan portfolios, in light of changes in economic conditions, new information regarding existing loans and other factors, may result in significant changes in the allowance for credit losses in those future periods. For example, changes to the FOMC’s forecasted civilian unemployment rate and year-over-year U.S. GDP growth could have a material impact on the model’s estimation of the allowance for credit losses on loans. An immediate increase of 100 basis points in the FOMC’s projected rate of civilian unemployment and a decrease of 100 basis points in the FOMC’s projected rate of U.S. GDP growth would increase the model’s total calculated allowance for credit losses on loans by $1.3 million, or 5.5%, as of June 30, 2025 assuming qualitative adjustments are kept at current levels. While management’s current evaluation of the allowance for credit losses indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. Additionally, changes in those factors and inputs may not occur at the same rate and inputs may be directionally inconsistent, such that improvements in one factor may offset deterioration in others. Going forward, the impact of utilizing the CECL approach to calculate the allowance for credit losses will be significantly influenced by the composition, characteristics and quality of our loan portfolios, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to our reported earnings.

Previous wording

The following table sets forth average balances, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense, as applicable.

Current wording

The following tables set forth average balances, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense, as applicable.

Previous wording

Total Assets. Total assets of $2.07 billion at March 31, 2025 increased $89.3 million, or 4.5%, from $1.98 billion at December 31, 2024. The increase was due primarily to an increase of $52.6 million, or 3.7%, in net loans receivable and an increase of $43.1 million, or 44.7% in cash and cash equivalents.

Current wording

Total Assets. Total assets of $2.10 billion at June 30, 2025 increased $116.7 million, or 5.9%, from $1.98 billion at December 31, 2024. The increase was due primarily to an increase of $108.3 million, or 7.5%, in net loans receivable and an increase of $25.5 million, or 26.5%, in cash and cash equivalents, offset in part by a decrease of $33.3 million, or 10.4%, in securities available for sale.

Previous wording

Cash and Cash Equivalents. Total cash and cash equivalents of $139.6 million at March 31, 2025, increased $43.1 million, or 44.7%, from $96.5 million at December 31, 2024.

Current wording

Cash and Cash Equivalents. Total cash and cash equivalents of $122.1 million at June 30, 2025, increased $25.6 million, or 26.5%, from $96.5 million at December 31, 2024.

Previous wording

Securities Available for Sale. Total securities available for sale of $311.0 million at March 31, 2025 decreased $10.5 million, or 3.3%, from $321.5 million at December 31, 2024. The decrease was primarily due to maturities, paydowns and calls of $61.6 million, offset in part by purchases of $47.8 million during the three months ended March 31, 2025.

Current wording

Securities Available for Sale. Total securities available for sale of $288.2 million at June 30, 2025 decreased $33.3 million, or 10.4%, from $321.5 million at December 31, 2024. The decrease was primarily due to maturities, paydowns and calls of $131.5 million, offset in part by purchases of $93.4 million of securities during the six months ended June 30, 2025.

Previous wording

Securities Held to Maturity. Total securities held to maturity of $31.4 million at March 31, 2025 increased $6.0 million, or 23.8%, from $25.4 million at December 31, 2024. The increase was primarily due to purchases of $9.2 million, offset in part by maturities and paydowns of $3.1 million during the three months ended March 31, 2025.

Current wording

Securities Held to Maturity. Total securities held to maturity of $42.4 million at June 30, 2025 increased $17.0 million, or 67.0%, from $25.4 million at December 31, 2024. The increase was primarily due to purchases of $20.5 million, offset in part by maturities, paydowns and calls of $3.3 million during the six months ended June 30, 2025.

Previous wording

Net Loans Receivable. Net loans receivable of $1.49 billion at March 31, 2025 increased $52.6 million, or 3.7%, from $1.43 billion at December 31, 2024. The increase in net loans receivable was primarily a result of growth in the residential mortgage loan portfolio which increased by $30.8 million, or 4.5%, to $720.4 million at March 31, 2025 from $689.6 million at December 31, 2024. Commercial construction loans increased by $11.9 million, or 9.1%, to $142.9 million at March 31, 2025 from $131.0 million at December 31, 2024, commercial real estate loans increased by $9.5 million, or 2.3%, to $424.3 million at March 31, 2025 from $414.8 million at December 31, 2024, consumer loans increased by $1.9 million, or 10.8%, to $19.5 million at March 31, 2025 from $17.6 million at December 31, 2024, and commercial and industrial loans increased by $1.3 million, or 1.2%, to $109.8 million at March 31, 2025 from $108.5 million at December 31, 2024. These increases were partially offset by a decrease in home equity loans and lines of credit of $1.8 million, or 1.9%, to $93.1 million at March 31, 2025 from $94.9 million at December 31, 2024.

Current wording

Net Loans Receivable. Net loans receivable of $1.54 billion at June 30, 2025 increased $108.3 million, or 7.5%, from $1.43 billion at December 31, 2024. The increase in net loans receivable was primarily a result of growth in the residential mortgage loan portfolio which increased by $52.6 million, or 7.6%, to $742.2 million at June 30, 2025 from $689.6 million at December 31, 2024. Commercial construction loans increased by $32.3 million, or 24.7%, to $163.3 million at June 30, 2025 from $131.0 million at December 31, 2024, commercial real estate loans increased by $17.6 million, or 4.2%, to $432.4 million at June 30, 2025 from $414.8 million at December 31, 2024, commercial and industrial loans increased by $5.6 million, or 5.2%, to $114.1 million at June 30, 2025 from $108.5 million at December 31, 2024, consumer loans increased by $1.9 million, or 11.3%, to $19.5 million at June 30, 2025 from $17.6 million at December

Previous wording

The increase in residential mortgage loans was primarily related to the Bank’s relationship with a third-party mortgage banking company which facilitated an increase in residential mortgage loan volume, despite the higher interest rate environment. The increase in commercial construction loans was due to funding of increased construction commitments. The increase in commercial real estate loans and commercial and industrial loans was due to loan funding outpacing loan payoffs. The increase in consumer loans was due to the purchase of $5.0 million in unsecured consumer loans during the quarter.

Current wording

The increase in residential mortgage loans was primarily related to the Bank’s relationship with a third-party mortgage banking company which facilitated an increase in residential mortgage loan volume, despite the higher interest rate environment. The increase in commercial construction loans was due to funding of increased construction commitments. The increase in commercial real estate loans and commercial and industrial loans was due to loan funding outpacing loan payoffs. The increase in consumer loans was due to the purchase of $5.0 million in unsecured consumer loans during the six months ended June 30, 2025.

Previous wording

Deposits. Deposits of $1.72 billion at March 31, 2025 increased $135.5 million, or 8.5%, from $1.59 billion at December 31, 2024. By deposit category, money market accounts increased by $108.2 million, or 19.4%, to $666.7 million at March 31, 2025 from $558.5 million at December 31, 2024, non-interest-bearing demand accounts increased by $55.0 million, or 12.1%, to $509.3 million at March 31, 2025 from $454.3 million at December 31, 2024, and savings accounts increased by $4.3 million, or 1.7%, to $264.5 million at March 31, 2025 from $260.2 million at December 31, 2024. These increases were offset in part by a decrease in certificate of deposits of $24.7 million, or 14.1%, to $150.1 million at March 31, 2025 from $174.8 million at December 31, 2024 (included in certificates of deposit were brokered deposits which decreased by $27.0 million to $13.0 million at March 31, 2025 from $40.0 million at December 31, 2024), and by a decrease in demand accounts of $7.3 million, or 5.3%, to $131.1 million at March 31, 2025 from $138.4 million at December 31, 2024.

Current wording

Deposits. Deposits of $1.74 billion at June 30, 2025 increased $155.7 million, or 9.8%, from $1.59 billion at December 31, 2024. By deposit category, certificates of deposit increased by $92.6 million, or 53.0%, to $267.4 million at June 30, 2025 from $174.8 million at December 31, 2024 (included in certificates of deposit were brokered deposits which increased by $82.9 million to $122.9 million at June 30, 2025 from $40.0 million at December 31, 2024), money market accounts increased by $53.4 million, or 9.6%, to $611.9 million at June 30, 2025 from $558.5 million at December 31, 2024, non-interest-bearing demand accounts increased by $16.6 million, or 3.7%, to $470.9 million at June 30, 2025 from $454.3 million at December 31, 2024, and savings accounts increased by $1.2 million, 0.4%, to $261.4 million at June 30, 2025 from $260.2 million at December 31, 2024, offset in part by a decrease in demand accounts of $8.1 million, or 5.9%, to $130.3 million at June 30, 2025 from $138.4 million at December 31, 2024.

Previous wording

The increase in money market accounts and non-interest-bearing demand accounts was primarily related to growth in municipal deposits due to seasonality and growth in commercial deposits. The decrease in certificates of deposit was primarily due to a decrease in brokered deposits, partially offset by a migration of funds from non-interest bearing demand, savings and other lower rate interest-bearing accounts. The decrease in demand accounts was primarily related to migration of funds to higher interest-bearing accounts.

Current wording

The increase in certificates of deposit was primarily due to an increase in brokered deposits, and by a migration of funds from non-interest bearing demand, savings and other lower rate interest-bearing accounts. The increase in money market accounts was primarily due to a migration of funds from non-interest bearing demand, savings and other lower rate interest-bearing accounts. The increase in non-interest-bearing demand accounts was primarily related to growth in

Previous wording

Uninsured deposits after exclusions represents 15.7% and 12.9% of total deposits as of March 31, 2025 and December 31, 2024, respectively. The Company believes that this presentation of uninsured deposits provides a more accurate view of deposits at risk as affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credits.

Current wording

Uninsured deposits after exclusions represented 15.2% and 12.9% of total deposits as of June 30, 2025 and December 31, 2024, respectively. The Company believes that this presentation of uninsured deposits provides a more accurate view of deposits at risk as affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit.

Previous wording

Borrowings from Federal Home Loan Bank of New York (“FHLBNY”). There were no borrowings from FHLBNY at March 31, 2025, compared to $40.0 million at December 31, 2024. The decrease in borrowings from FHLBNY was due to the payoff of the borrowings during the three months ended March 31, 2025.

Current wording

Borrowings from Federal Home Loan Bank of New York (“FHLBNY”). There were no borrowings from FHLBNY at June 30, 2025, compared to $40.0 million at December 31, 2024. The decrease in borrowings from FHLBNY was due to the payoff of the borrowings during the six months ended June 30, 2025.

Previous wording

Total Shareholders’ Equity. Total shareholders’ equity of $310.7 million at March 31, 2025 increased $6.1 million, or 2.0%, from $304.6 million at December 31, 2024 primarily as a result of net income of $5.8 million and an increase in accumulated other comprehensive income of $1.5 million, partially offset by the repurchase of common stock of $1.6 million.

Current wording

Total Shareholders’ Equity. Total shareholders’ equity of $314.3 million at June 30, 2025 increased $9.7 million, or 3.2%, from $304.6 million at December 31, 2024 primarily as a result of net income of $12.2 million and an increase in accumulated other comprehensive income of $1.5 million, partially offset by the repurchase of common stock of $5.0 million during the six months ended June 30, 2025.

Previous wording

General. Net income increased by $1.1 million to $5.8 million for the three months ended March 31, 2025 as compared to $4.7 million for the three months ended March 31, 2024. The increase was primarily due to an increase in net interest income of $1.8 million and a decrease in non-interest expense of $838,000, offset in part by an increase in the provision for credit losses of $720,000, a decrease in non-interest income of $509,000, and by an increase in income tax expense of $317,000.

Current wording

General. Net income increased by $2.6 million to $6.5 million for the three months ended June 30, 2025 as compared to $3.9 million for the three months ended June 30, 2024. The increase was primarily due to an increase in net interest income of $2.4 million, an increase in non-interest income of $1.1 million, and a decrease in non-interest expense of $379,000, offset in part by an increase in the provision for credit losses of $800,000, and by an increase in income tax expense of $586,000.

Previous wording

Interest and Dividend Income. Interest and dividend income increased $2.7 million, or 11.8%, to $25.8 million for the three months ended March 31, 2025, from $23.1 million for the three months ended March 31, 2024 due to increases in interest income on loans and interest income on securities, offset in part by a decrease in interest income on interest-earning deposits with banks and other. The increase was the result of a 32 basis points increase in the average yield on interest-earning assets to 5.62% for the three months ended March 31, 2025, from 5.30% for the three months ended March 31, 2024. The increase in the average yield on interest-earning assets was driven by market related increases in interest rates on new loans and on investment securities purchased. Average interest-earning assets increased by $117.7 million from $1.79 billion for the three months ended March 31, 2024 to $1.91 billion for the three months ended March 31, 2025 primarily due to the increase in the average balance of loans.

Current wording

Interest and Dividend Income. Interest and dividend income increased $3.4 million, or 14.6%, to $27.0 million for the three months ended June 30, 2025, from $23.6 million for the three months ended June 30, 2024 due to increases in interest income on loans and interest income on securities, offset in part by a decrease in interest income on interest-earning deposits with banks and other. The increase was the result of a 31 basis points increase in the average yield on interest-earning assets to 5.72% for the three months ended June 30, 2025, from 5.41% for the three months ended June 30, 2024. The increase in the average yield on interest-earning assets was driven by market related increases in interest rates on new loans and on investment securities purchased. Average interest-earning assets increased by $144.9 million

Previous wording

Interest income on loans increased $2.5 million, or 13.0%, to $21.2 million for the three months ended March 31, 2025 from $18.7 million for the three months ended March 31, 2024. Interest income on loans increased due to a $166.5 million increase in the average balance of loans to $1.47 billion for the three months ended March 31, 2025 from $1.30 billion for the three months ended March 31, 2024, coupled with a six basis points increase in the average yield on loans to 5.98% for the three months ended March 31, 2025 from 5.92% for the three months ended March 31, 2024. The increase in the average balance of loans was principally due to purchases of residential mortgage loans. The increase in average yield on loans was primarily due to market related increases in interest rates on new loans.

Current wording

Interest income on loans increased $2.9 million, or 15.2%, to $22.3 million for the three months ended June 30, 2025 from $19.4 million for the three months ended June 30, 2024. Interest income on loans increased due to a $180.3 million increase in the average balance of loans to $1.52 billion for the three months ended June 30, 2025 from $1.34 billion for the three months ended June 30, 2024, coupled with a seven basis points increase in the average yield on loans to 6.04% for the three months ended June 30, 2025 from 5.97% for the three months ended June 30, 2024. The increase in the average balance of loans was principally due to purchases of residential mortgage loans. The increase in average yield on loans was primarily due to market related increases in interest rates on new loans.

Previous wording

Interest income on securities increased $1.5 million, or 61.5%, to $3.8 million for the three months ended March 31, 2025 from $2.3 million for the three months ended March 31, 2024. Interest income on securities increased due to a $19.8 million increase in the average balance of securities to $357.2 million for the three months ended March 31, 2025 from $337.4 million for the three months ended March 31, 2024, and a 154 basis points increase in the average yield on securities to 4.36% for the three months ended March 31, 2025 from 2.82% for the three months ended March 31, 2024. The increase in the average balance and average yield of securities was primarily due to the purchases of new securities during the three months ended March 31, 2025 and the higher market interest rates for new securities that were purchased replacing maturities of lower yielding securities.

Current wording

Interest income on securities increased $1.7 million, or 76.0%, to $3.9 million for the three months ended June 30, 2025 from $2.2 million for the three months ended June 30, 2024. Interest income on securities increased due to a $43.4 million increase in the average balance of securities to $352.9 million for the three months ended June 30, 2025 from $309.5 million for the three months ended June 30, 2024, and a 162 basis points increase in the average yield on securities to 4.56% for the three months ended June 30, 2025 from 2.94% for the three months ended June 30, 2024. The increase in the average balance and average yield of securities was primarily due to the purchases of new securities during the three months ended June 30, 2025 and the higher market interest rates for new securities that were purchased replacing maturities of lower yielding securities.

Previous wording

Interest income on interest-earning deposits with banks and other decreased $1.1 million to $897,000 for the three months ended March 31, 2025 from $2.0 million for the three months ended March 31, 2024. Interest income on interest-earning deposits with banks and other decreased due to a $68.5 million decrease in the average balances on interest-earning deposits with banks and other to $80.0 million for the three months ended March 31, 2025 from $148.5 million for the three months ended March 31, 2024, primarily due to an increase in the average balances of loans and securities, as well as a 99 basis points decrease in the average yield on interest-earning deposits with banks and other to 4.63% for the three months ended March 31, 2025 from 5.62% for the three months ended March 31, 2024 primarilydue to changes in market interest rates.

Current wording

Interest income on interest-earning deposits with banks and other decreased $1.2 million to $732,000 for the three months ended June 30, 2025 from $1.9 million for the three months ended June 30, 2024. Interest income on interest-earning deposits with banks and other decreased due to a $78.7 million decrease in the average balances on interest-earning deposits with banks and other to $64.5 million for the three months ended June 30, 2025 from $143.2 million for the three months ended June 30, 2024, primarily due to an increase in the average balances of loans and securities, as well as a 92 basis points decrease in the average yield on interest-earning deposits with banks and other to 4.63% for the three months ended June 30, 2025 from 5.55% for the three months ended June 30, 2024 primarilydue to changes in market interest rates.

Previous wording

Interest Expense. Interest expense increased $981,000 to $6.8 million for the three months ended March 31, 2025 from $5.8 million for the three months ended March 31, 2024 as a result of increases in interest expense on deposits. The increase was primarily due to a 19 basis points increase in the average cost of interest-bearing liabilities to 2.30% for the three months ended March 31, 2025 from 2.11% for the three months ended March 31, 2024, as well as a shift in the mix of interest-bearing liabilities to higher interest rate liability accounts.

Current wording

Interest Expense. Interest expense increased $1.0 million, or 16.3%, to $7.4 million for the three months ended June 30, 2025 from $6.4 million for the three months ended June 30, 2024 primarily as a result of an increase in interest expense on deposits. The increase was primarily due to a 14 basis points increase in the average cost of interest-bearing liabilities to 2.41% for the three months ended June 30, 2025 from 2.27% for the three months ended June 30, 2024, as well as a shift in the mix of interest-bearing liabilities to higher interest rate liability accounts.

Previous wording

Interest expense on interest-bearing deposits increased $882,000 to $6.4 million for the three months ended March 31, 2025 from $5.5 million for the three months ended March 31, 2024. Interest expense on interest-bearing deposits increased primarily due to a 18 basis points increase in the average cost of interest-bearing deposits to 2.25% for the three months ended March 31, 2025 from 2.07% for the three months ended March 31, 2024, as well as a shift in the mix of interest-bearing deposits to higher interest rate deposit accounts and an increase in average interest-bearing deposits of $80.9 million to $1.17 billion for the three months ended March 31, 2025 from $1.09 billion for the three months ended March 31, 2024. The increase in the average cost of interest-bearing deposits wasdue primarily to the upward repricing of certain interest-bearing deposit accounts in response to changes in market interest rates, as well as a shift in the mix of deposits towards higher cost interest-bearing accounts. The increase in the average balance of interest-bearing deposits was due to higher average money market and certificates of deposit balances.

Current wording

Interest expense on interest-bearing deposits increased $750,000, or 12.3%, to $6.8 million for the three months ended June 30, 2025 from $6.1 million for the three months ended June 30, 2024. Interest expense on interest-bearing deposits increased primarily due to a 11 basis points increase in the average cost of interest-bearing deposits to 2.34% for the three months ended June 30, 2025 from 2.23% for the three months ended June 30, 2024, as well as a shift in the mix of interest-bearing deposits to higher interest rate deposit accounts and an increase in average interest-bearing deposits of $78.4 million to $1.19 billion for the three months ended June 30, 2025 from $1.11 billion for the three months ended June 30, 2024. The increase in the average cost of interest-bearing deposits wasdue primarily to the upward repricing of certain interest-bearing deposit accounts in response to changes in market interest rates, as well as a shift in the mix of deposits towards higher cost interest-bearing accounts. The increase in the average balance of interest-bearing deposits was due to higher average money market and certificates of deposit balances.

Previous wording

Interest expense on borrowings and other liabilities increased $99,000 to $347,000 for the three months ended March 31, 2025 from $248,000 for the three months ended March 31, 2024 due primarily to an increase in the average borrowings and other liabilities of $12.5 million to $34.6 million for the three months ended March 31, 2025 from $22.1 million for the three months ended March 31, 2024, offset in part by a decrease in the average cost of borrowings and other liabilities of 47 basis points to 4.13% for the three months ended March 31, 2025 from 4.60% for the three months ended March 31, 2024.

Current wording

Interest expense on borrowings and other liabilities increased $288,000 to $554,000 for the three months ended June 30, 2025 from $266,000 for the three months ended June 30, 2024 due primarily to an increase in average borrowings and other liabilities of $27.0 million to $54.8 million for the three months ended June 30, 2025 from $27.8 million for the three months ended June 30, 2024 and an increase in the average cost of borrowings and other liabilities of 21 basis points to 4.11% for the three months ended June 30, 2025 from 3.90% for the three months ended June 30, 2024.

Previous wording

Provision for Credit Losses. The provision for credit losses was $800,000 for the three months ended March 31, 2025, as compared to a provision for credit losses of $80,000 for the three months ended March 31, 2024. The increase in the provision for credit losses for the three months ended March 31, 2025 was primarily due to changes in current economic conditions and growth in the loan portfolio. Non-performing assets were $10.7 million, or 0.52% of total assets, at March 31, 2025, compared to $5.2 million, or 0.27% of total assets, at December 31, 2024 and $8.7 million, or 0.44% of total assets, at March 31, 2024. The allowance for credit losses on loans was $22.8 million at March 31, 2025, compared to $21.8 million at December 31, 2024 and $21.6 million at March 31, 2024, representing 1.51%, 1.49% and 1.62% of total loans outstanding, respectively. Net charge-offs were $15,000 for the three months ended March 31, 2025, compared to net charge-offs of $20,000 for the three months ended March 31, 2024. Annualized net charge-offs were 0.00% of average loans for the three months ended March 31, 2025, compared to annualized net charge-offs of 0.01% of average loans for the three months ended March 31, 2024.

Current wording

Provision for Credit Losses. The provision for credit losses was $1.6 million for the three months ended June 30, 2025, as compared to a provision for credit losses of $750,000 for the three months ended June 30, 2024. The increase in the provision for credit losses for the three months ended June 30, 2025 was primarily due to growth in the loan portfolio and changes in current economic conditions. Non-performing assets were $11.5 million, or 0.55% of total assets, at June 30, 2025, compared to $5.2 million, or 0.27% of total assets, at December 31, 2024 and $9.2 million, or 0.49% of total assets, at June 30, 2024. The allowance for credit losses on loans was $23.8 million at June 30, 2025, compared to $21.8 million at December 31, 2024 and June 30, 2024, representing 1.52%, 1.49% and 1.60% of total loans outstanding, respectively. Net charge-offs were $70,000 for the three months ended June 30, 2025, compared to net charge-offs of $129,000 for the three months ended June 30, 2024. Annualized net charge-offs were 0.02% of average loans for the three months ended June 30, 2025, compared to annualized net charge-offs of 0.04% of average loans for the three months ended June 30, 2024.

Previous wording

Non-Interest Expense. Non-interest expense decreased $838,000, or 5.4%, to $14.6 million for the three months ended March 31, 2025 as compared to $15.4 million for the three months ended March 31, 2024. The decrease in noninterest expense for the three months ended March 31, 2025 was primarily due to a decrease in professional fees of $1.2 million and a decrease in other expenses of $456,000, offset in part by an increase in salaries and employee benefits of $907,000. Professional fees decreased due to lower legal fees and expenses as compared to the prior-year period. Other expenses decreased due to a benefit for the other cost components of the net periodic pension and post-retirement benefits cost during the three months ended March 31, 2025. Salaries and employee benefits increased primarily due to compensation expense from annual merit increases as well as due to share-based compensation costs recognized during the three months ended March 31, 2025 for the stock awards granted during the three months ended June 30, 2024.

Current wording

Non-Interest Expense. Non-interest expense decreased $379,000, or 2.5%, to $14.7 million for the three months ended June 30, 2025 as compared to $15.1 million for the three months ended June 30, 2024. The decrease in noninterest expense for the three months ended June 30, 2025 was primarily due to a decrease in professional fees of $693,000 and a decrease in other expenses of $718,000, offset in part by an increase in salaries and employee benefits of $1.0 million. Professional fees decreased due to lower legal fees and expenses as compared to the prior-year period. Other expenses decreased due to a benefit for the other cost components of the net periodic pension and post-retirement benefits cost during the three months ended June 30, 2025. Salaries and employee benefits increased due to compensation expense from annual merit increases as well as due to share-based compensation costs recognized during the three months ended June 30, 2025 for the stock awards granted during the three months ended June 30, 2024.

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Net Interest Income. Net interest income of $19.1 million for the three months ended March 31, 2025 increased $1.8 million, or 10.1%, compared to $17.3 million for the three months ended March 31, 2024 as net interest margin increased 16 basis points to 4.12% for the three months ended March 31, 2025 from 3.96% for the three months ended March 31, 2024, and due to an increase in net interest-earning assets by $24.3 million to $703.1 million for the three months ended March 31, 2025 from $678.8 million for the three months ended March 31, 2024. Net interest rate spread

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basis points to 4.12% for the six months ended June 30, 2025 from 3.91% for the six months ended June 30, 2024, and due to an increase in net interest-earning assets of $30.2 million to $698.4 million for the six months ended June 30, 2025 from $668.2 million for the six months ended June 30, 2024. Net interest rate spread increased 16 basis points to 3.28% for the six months ended June 30, 2025 from 3.12% for the six months ended June 30, 2024.

Previous wording

Non-Interest Income. Non-interest income decreased $509,000, or 12.0%, to $3.7 million for the three months ended March 31, 2025 as compared to $4.2 million for the three months ended March 31, 2024. The decrease in noninterest income for the three months ended March 31, 2025 was primarily due to $386,000 of net gain on equity securities during the three months ended March 31, 2024.

Current wording

Non-Interest Income. Non-interest income increased $609,000, or 7.7%, to $8.5 million for the six months ended June 30, 2025 as compared to $7.9 million for the six months ended June 30, 2024. The increase in noninterest income for the six months ended June 30, 2025 was primarily due to a $692,000 increase in other noninterest income and a $263,000 increase in insurance and wealth management services income, offset in part by $386,000 of net gain on equity securities during the six months ended June 30, 2024 as compared to no such gain for the six months ended June 30, 2025. The increase in other noninterest income for the six months ended June 30, 2025 was primarily due to $550,000 ofbank-owned life insurance income as a result of a death benefit. The increase in insurance and wealth management services income for the six months ended June 30, 2025 was primarily as a result of organic growth and positive market performance related to our wealth management services.

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Income Tax Expense. Income tax expense increased $317,000 to $1.7 million for the three months ended March 31, 2025 as compared to $1.3 million for the three months ended March 31, 2024 primarily due to an increase in income before income taxes. Our effective tax rate was 22.3% for the three months ended March 31, 2025 compared to 22.1% for the three months ended March 31, 2024.

Current wording

Income Tax Expense. Income tax expense increased $903,000 to $3.3 million for the six months ended June 30, 2025 as compared to $2.4 million for the six months ended June 30, 2024 primarily due to an increase in income before income taxes. Our effective tax rate was 21.5% for the six months ended June 30, 2025 compared to 22.0% for the six months ended June 30, 2024.

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Non-accrual loans increased $5.5 million to $10.7 million at December 31, 2024 from $5.2 million at December 31, 2024 primarily due to a $4.7 million commercial real estate loan relationship consisting of four loans secured by multiple office, warehouse and industrial properties and a $844,000 commercial real estate loan secured by manufactured housing parks being placed on non-accrual during the three months ended March 31, 2025.

Current wording

Non-accrual loans increased $5.7 million to $10.9 million at June 30, 2025 from $5.2 million at December 31, 2024 primarily due to a $4.7 million commercial real estate loan relationship consisting of four loans secured by multiple office, warehouse and industrial properties and a $850,000 commercial real estate loan secured by manufactured housing parks being placed on non-accrual status during the six months ended June 30, 2025.

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Total substandard loans increased $2.9 million to $27.5 million at March 31, 2025 from $24.6 million at December 31, 2024 primarily due to the migration from the pass category to the substandard category of a $3.0 million commercial real estate loan relationship consisting of two loans secured by manufactured housing parks.

Current wording

Total substandard loans increased $2.6 million to $27.2 million at June 30, 2025 from $24.6 million at December 31, 2024 primarily due to the migration from the pass category to the substandard category of a $3.0 million commercial real estate loan relationship consisting of two loans secured by manufactured housing parks.

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Total doubtful loans increased by $1.2 million to $1.3 million at March 31, 2025 from $117,000 at December 31, 2024 primarily due to the migration from the pass category to the doubtful category of a $844,000 commercial real estate loan secured by manufactured housing parks.

Current wording

Total doubtful loans increased by $830,000 to $947,000 at June 30, 2025 from $117,000 at December 31, 2024 primarily due to the migration from the pass category to the doubtful category of a $850,000 commercial real estate loan secured by manufactured housing parks.

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Total special mention loans increased by $2.6 million to $7.5 million at March 31, 2025 from $4.9 million at December 31, 2024 primarily due to the migration from the pass category to the special mention category of a $1.1 million commercial real estate loan relationship consisting of three loans secured byvarious multi-family properties, and the migration from the pass category to the special mention category of a $1.5 million commercial and industrial loan secured by the business assets.

Current wording

Total special mention loans increased by $2.6 million to $7.5 million at June 30, 2025 from $4.9 million at December 31, 2024 primarily due to the migration from the pass category to the special mention category of a $1.2 million commercial real estate loan relationship consisting of four loans secured byvarious multi-family properties, and the migration from the pass category to the special mention category of a $1.4 million commercial and industrial loan secured by business assets.

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Allowance for Credit Losses on Loans. The measurement of Current Expected Credit Losses (“CECL”) on loans requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, the Company considers forecasts about future economic conditions that are reasonable and supportable. On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the estimated fair value of the collateral, as applicable. The allowance for credit losses on loans, as reported in our consolidated statements of condition, is adjusted by a provision for credit losses, which is recognized in earnings, and reduced by the charge-off of loans, net of recoveries.

Current wording

Allowance for Credit Losses on Loans. The measurement of CECL on loans requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, the Company considers forecasts about future economic conditions that are reasonable and supportable. On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the estimated fair value of the collateral, as applicable. The allowance for credit losses on loans, as reported in our consolidated statements of condition, is adjusted by a provision for credit losses, which is recognized in earnings, and reduced by the charge-off of loans, net of recoveries.

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Liquidity. Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from calls, maturities and sales of securities. We also have the ability to borrow from the Federal Home Loan Bank of New York. At March 31, 2025, we had the ability to borrow up to $554.7 million from the Federal Home Loan Bank of New York, of which none was utilized for borrowings and $250.0 million was utilized as collateral for letters of credit issued to secure municipal deposits. At March 31, 2025, we also had a $20.0 million unsecured

Current wording

Liquidity. Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from calls, maturities and sales of securities. We also have the ability to borrow from the FHLBNY. At June 30, 2025, we had the ability to borrow up to $574.6 million from the FHLBNY, of which none was utilized for borrowings and $185.0 million was utilized as collateral for letters of credit issued to secure municipal deposits. At June 30, 2025, we also had a $20.0 million unsecured line of credit with a correspondent bank with no outstanding

Previous wording

line of credit with a correspondent bank with no outstanding balance, as well as the ability to borrow from the Federal Reserve Bank of New York through the discount window lending program, and access to the reciprocal and brokered deposit markets. We cannot predict the impact of the events described in “Part II, Item 1 – Legal Proceedings” may have on our Liquidity and Capital Resources beyond the quarter ended March 31, 2025.

Current wording

balance, as well as the ability to borrow from the Federal Reserve Bank of New York through the discount window lending program, and access to the reciprocal and brokered deposit markets. We cannot predict the impact of the events described in “Part II, Item 1 – Legal Proceedings” may have on our Liquidity and Capital Resources beyond the quarter ended June 30, 2025.

Previous wording

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent on our operating, financing, lending and investing activities during any period. At March 31, 2025, cash and cash equivalents totaled $139.6 million. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $311.0 million at March 31, 2025.

Current wording

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent on our operating, financing, lending and investing activities during any period. At June 30, 2025, cash and cash equivalents totaled $122.1 million. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $288.2 million at June 30, 2025.

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We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Certificates of deposit due within one year of March 31, 2025 totaled $125.7 million, or 7.30%, of total deposits. If these deposits do not remain with us, we will be required to seek other sources of funds, including other deposits and Federal Home Loan Bank of New York advances. Depending on market conditions, we may be required to pay higher rates on such deposits or borrowings than we currently pay. We believe, however, based on past experience that a significant portion of such deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Current wording

We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Certificates of deposit due within one year of June 30, 2025 totaled $113.2 million, or 6.50%, of total deposits. If these deposits do not remain with us, we will be required to seek other sources of funds, including other deposits and FHLBNY advances. Depending on market conditions, we may be required to pay higher rates on such deposits or borrowings than we currently pay. We believe, however, based on past experience that a significant portion of such deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Previous wording

At March 31, 2025, we had $325.5 million of commitments to originate or purchase loans, comprised of $194.1 million of commitments under commercial loans and lines of credit (including $71.6 million of unadvanced portions of commercial construction loans), $73.1 million of commitments under home equity loans and lines of credit, $30.0 million of commitments to purchase residential mortgage loans and $7.0 million of unfunded commitments under consumer lines of credit. In addition, at March 31, 2025, we had $21.3 million in standby letters of credit outstanding.

Current wording

At June 30, 2025, we had $361.3 million of commitments to originate or purchase loans, comprised of $226.9 million of commitments under commercial loans and lines of credit (including $86.6 million of unadvanced portions of commercial construction loans), $77.8 million of commitments under home equity loans and lines of credit, $49.7 million of commitments to purchase residential mortgage loans and $6.9 million of unfunded commitments under consumer lines of credit. In addition, at June 30, 2025, we had $22.4 million in standby letters of credit outstanding.