Hanover Bancorp, Inc. /MD (HNVR)
SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6022 State Commercial Banks
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1828588. Latest filing source: 0001104659-26-027651.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 130,479,000 | USD | 2025 | 2026-03-13 |
| Net income | 7,488,000 | USD | 2025 | 2026-03-13 |
| Assets | 2,383,096,000 | USD | 2025 | 2026-03-13 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001828588.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Revenue | 40,133,000 | 48,675,000 | 68,429,000 | 105,043,000 | 133,022,000 | 130,479,000 | |
| Net income | 4,974,000 | 10,851,000 | 23,556,000 | 15,164,000 | 12,346,000 | 7,488,000 | |
| Diluted EPS | 1.18 | 2.28 | 3.68 | 2.05 | 1.66 | 1.00 | |
| Operating cash flow | 566,000 | 13,192,000 | 25,081,000 | 16,401,000 | 5,440,000 | 13,051,000 | |
| Capital expenditures | 1,093,000 | 2,079,000 | 1,122,000 | 3,407,000 | 1,292,000 | 869,000 | |
| Dividends paid | 2,929,000 | 2,960,000 | 3,009,000 | ||||
| Share buybacks | 0.00 | 1,830,000 | |||||
| Assets | 851,606,000 | 1,484,641,000 | 1,840,058,000 | 2,270,060,000 | 2,312,110,000 | 2,383,096,000 | |
| Liabilities | 773,563,000 | 1,362,112,000 | 1,667,474,000 | 2,085,230,000 | 2,115,472,000 | 2,182,830,000 | |
| Stockholders' equity | 71,950,000 | 78,043,000 | 122,529,000 | 172,584,000 | 184,830,000 | 196,638,000 | 200,266,000 |
| Cash and cash equivalents | 80,209,000 | 166,544,000 | 149,947,000 | 177,207,000 | 162,857,000 | 208,904,000 | |
| Free cash flow | -527,000 | 11,113,000 | 23,959,000 | 12,994,000 | 4,148,000 | 12,182,000 |
Ratios
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Net margin | 12.39% | 22.29% | 34.42% | 14.44% | 9.28% | 5.74% | |
| Return on equity | 6.37% | 8.86% | 13.65% | 8.20% | 6.28% | 3.74% | |
| Return on assets | 0.58% | 0.73% | 1.28% | 0.67% | 0.53% | 0.31% | |
| Liabilities / equity | 9.91 | 11.12 | 9.66 | 11.28 | 10.76 | 10.90 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-08. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001828588.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-03-31 | 1.00 | reported discrete quarter | ||
| 2022-Q3 | 2022-06-30 | 0.80 | reported discrete quarter | ||
| 2023-Q1 | 2022-12-31 | 0.72 | reported discrete quarter | ||
| 2023-Q2 | 2022-12-31 | 5,338,000 | reported discrete quarter | ||
| 2023-Q2 | 2023-03-31 | 25,060,000 | 0.43 | reported discrete quarter | |
| 2023-Q3 | 2023-03-31 | 3,209,000 | reported discrete quarter | ||
| 2023-Q3 | 2023-06-30 | 28,459,000 | 0.42 | reported discrete quarter | |
| 2023-Q4 | 2023-09-30 | 28,952,000 | 3,523,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 32,432,000 | 4,061,000 | 0.55 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | 4,061,000 | reported discrete quarter | ||
| 2024-Q2 | 2024-06-30 | 33,420,000 | 0.11 | reported discrete quarter | |
| 2024-Q3 | 2024-06-30 | 844,000 | reported discrete quarter | ||
| 2024-Q3 | 2024-09-30 | 34,113,000 | 0.48 | reported discrete quarter | |
| 2024-Q4 | 2024-12-31 | 33,057,000 | 3,902,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 32,837,000 | 1,521,000 | 0.20 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 | 1,521,000 | reported discrete quarter | ||
| 2025-Q2 | 2025-06-30 | 32,049,000 | 0.33 | reported discrete quarter | |
| 2025-Q3 | 2025-06-30 | 2,443,000 | reported discrete quarter | ||
| 2025-Q3 | 2025-09-30 | 32,994,000 | 0.47 | reported discrete quarter | |
| 2025-Q4 | 2025-12-31 | 32,599,000 | 33,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 32,292,000 | 1,874,000 | 0.25 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001104659-26-057877.
ITEM 2. - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Cautionary Statement Regarding Forward-Looking Statements - This document contains a number of forward-looking statements, including statements about the financial condition, results of operations, earnings outlook and prospects of the Company. Forward-looking statements are typically identified by words such as “should,” “likely,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “target,” “project,” “goal” and other similar words and expressions. The forward-looking statements involve certain risks and uncertainties. The ability of the Company to predict results or the actual effects of its plans and strategies is subject to inherent uncertainty. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include those set forth in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as updated by the Company’s subsequent filings with the SEC and, among others, the following: ● Changes in monetary and fiscal policies of the FRB and the U. S. Government, particularly related to changes in interest rates, money supply and inflation, may affect interest margins and the fair value of financial instruments; ● Changes in general economic conditions, either nationally or in our market areas, including due to increased market volatility related to government policy or the impact of tariffs or trade policy, that are different than expected and the impact of changing political conditions or federal government shutdowns; ● The ability to enhance revenue through increased market penetration, expanded lending capacity and product offerings; ● Occurrence of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, or outbreaks of hostilities, such as between Russia and Ukraine and in the Middle East, or the effects of climate change, and the ability of the Company to deal effectively with disruptions caused by the foregoing; ● Legislative, regulatory or policy changes, including those relating, but not limited, to banking, securities, rent regulation and housing, financial accounting and reporting, environmental protection and insurance matters and the impact of such changes, as well as our ability to comply such changes in a timely manner; ● Downturns in demand for loan, deposit and other financial services in the Company’s market area and the adequacy of the allowance for credit losses; ● Increased competition from other banks and non-bank providers of financial services; ● Technological changes and increased technology-related costs; ● A breach of our information systems security, including the occurrence of a cyber incident or a deficiency in cyber security; and 34 Table of Contents ● Changes in accounting principles, or the application of generally accepted accounting principles. Because these forward-looking statements are subject to assumptions and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on these statements, which speak only as of the date of this document. All subsequent written and oral forward-looking statements concerning matters addressed in this document and attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this document. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Non-GAAP Disclosure - This discussion includes discussions of the Company’s tangible common equity (“TCE”) ratio, TCE, tangible assets and efficiency ratio, all of which are non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or modifies amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with U.S. GAAP. The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and the Company’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other financial institutions. With respect to the calculations and reconciliations of TCE, tangible assets and the TCE ratio, please see Liquidity and Capital Resources contained herein for a reconciliation to the most directly comparable GAAP measure. Executive Summary – The Company is a one-bank holding company incorporated in 2016. The Company operates as the parent for its wholly owned subsidiary, the Bank, which commenced operations in 2008. The income of the Company is primarily derived through the operations of the Bank. Unless the context otherwise requires, references herein to the Company include the Company and the Bank on a consolidated basis. The Company completed its core processing system conversion to FIS Horizon in February 2025. This conversion, coupled with our refreshed corporate logo, exemplifies our momentum towards a more technologically advanced, modern and digitally forward-thinking bank. The Company was added to the Russell 2000 Index in late June 2025. The Russell 2000 Index encompasses the 2,000 largest U.S.-traded stocks by objective, market-capitalization rankings, and style attributes. The Russell Indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. The Bank operates as a locally headquartered, community-oriented bank serving customers throughout the New York metro area from offices in Nassau, Suffolk, Queens, Kings (Brooklyn) and New York (Manhattan) Counties, New York, and Freehold, Monmouth County, New Jersey. We opened the Bank’s Hauppauge Business Banking Center in Hauppauge, Suffolk County, New York in May 2023. This location is the nexus of our expanded commercial lending and deposit activities that are integral to the ongoing diversification of our balance sheet as we fill the void left by the diminishing number of commercial banks in the NYC Metro area. In June 2025, we opened a full-service branch in Port Jefferson, Suffolk County, New York to serve the thriving Suffolk County area. Regulatory authorization has been received for the opening of a full-service branch in a state-of-the-art facility in downtown Riverhead, New York. In anticipation of the branch opening later this year, a temporary loan production office in Riverhead with business development staff became operational in March 2026. We offer personal and business loans on a secured and unsecured basis, SBA and USDA guaranteed loans, revolving lines of credit, commercial mortgage loans, and one- to four-family non-qualified mortgages secured by primary and secondary residences that may be owner occupied or investment properties, home equity loans, bridge loans and other personal purpose loans. 35 Table of Contents The Bank works to provide more direct, personal attention to customers than management believes is offered by competing financial institutions, the majority of which are headquartered outside of the Bank’s primary trade area and are represented locally by branch offices. By striving to employ professional, responsive and knowledgeable staff, the Bank believes it offers a superior level of service to its customers. As a result of senior management’s availability for consultation on a daily basis, the Bank believes it offers customers quicker responses on loan applications and other banking transactions, as well as greater and earlier certainty as to whether these transactions will actually close, than competitors, whose decisions may take longer and be made in distant headquarters. Historically, the Bank has generated additional income by strategically originating and selling residential and government guaranteed loans to other financial institutions at premiums, while also retaining servicing rights in some sales. However, with the higher market interest rates experienced in recent years, the appetite among the Bank’s purchasers of residential loans for pools of loans declined, eliminating the Bank’s ability to sell residential loans in its portfolio on desirable terms. In response, the Bank developed a flow origination program under which the Bank originates individual loans for sale to specific buyers, thereby positioning the Bank to resume residential loan sales and generate fee income to complement sale premiums earned from the sale of the guaranteed portion of SBA loans. The Bank is an approved SBA Preferred Lender, enabling the Bank to process SBA applications under delegated authority from the SBA and enhancing the Bank’s ability to compete more effectively for SBA lending opportunities. The Bank remains focused on expanding its core verticals and continues to originate loans for its portfolio and for sale in the secondary market under its residential flow origination program. During the quarters ended March 31, 2026 and 2025, the Company sold $35.2 million and $18.3 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.9 million and $0.4 million, respectively. During the quarters ended March 31, 2026 and 2025, the Company sold approximately $6.3 million and $23.4 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $0.5 million and $1.9 million, respectively. SBA loan originations and gains on sales continue to be lower due to a less favorable economic outlook for many business owners along with the Bank’s ongoing prudent decision to tighten credit. Together, these factors contributed to lower SBA loan volume, approval levels, and related gain-on-sale income. In February 2026, the Bank executed a proactive wholesale funding optimization strategy, restructuring five FHLB advances maturing in 2027 and 2028 and totaling $60.3 million in two new advances of equal principal with embedded put features to enhance balance sheet flexibility. The transaction reduced the weighted average all-in borrowing cost from 4.27% to 3.47%, generating approximately $40 thousand in monthly interest expense savings while preserving appropriate term funding and call protection. On March 12, 2026, the Company issued $35 million of 10-year fixed-to-floating rate subordinated notes with a fixed coupon rate of 7.25% for the first five years. The Company used the net proceeds to provide capital to support growth of the consolidated entity and to redeem in full, its previously outstanding $25 million of 8.54% floating rate subordinated notes on April 15, 2026, thereby reducing the Company’s cost of funds. The Bank finances most of its activities through a combination of deposits, including non-interest-bearing demand, savings, NOW and money market deposits as well as time deposits, and both short- and long-term borrowings. The Company’s chief competition includes local banks within its market area, New York City money center banks and regional banks, as well as non-bank lenders, including fintech lenders. 36 Table of Contents Financial Performance Summary As of or for the three months ended March 31, 2026 and 2025 (dollars in thousands, except per share data) [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following is a discussion of our financial condition and results or our operations for the years ended December 31, 2025 and 2024, respectively. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements. Unless the context otherwise specifies or requires, references herein to “we” or “us” include Hanover Bancorp, Inc. and Hanover Bank on a consolidated basis. Business Overview The Company is a Maryland corporation and is the holding company for the Bank. The Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to local needs, commenced operations in 2009 and is incorporated under the laws of the State of New York. As a New York State chartered bank, the Bank is subject to regulation by the DFS and the FDIC. As a bank holding company, the Company is subject to regulation and examination by the FRB. The Company completed its core processing system conversion to FIS Horizon in February 2025. This conversion, coupled with our recently refreshed corporate logo, exemplifies our momentum towards a more technologically advanced, modern and digitally forward-thinking bank. The Company was added to the Russell 2000 Index in June 2025. The Russell 2000 Index encompasses the 2,000 largest U.S.-traded stocks by objective, market-capitalization rankings, and style attributes. The Russell Indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. The Bank offers a full range of financial services including a complete suite of consumer, commercial, and municipal banking products and services, including multifamily and commercial mortgages, government guaranteed loans, residential loans, business loans and lines of credit. The Bank also offers its customers, among other things, access to 24-hour ATM service with no fees, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for its consumer and business customers and safe deposit boxes. Our corporate administrative office is located in Mineola, New York where the Bank also operates a full-service branch office. Additional branches are located in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Bowery, New York and Freehold, New Jersey. It is expected that the Company will once again expand its geographic footprint with the opening of a full-service branch in a state-of-the-art facility in downtown Riverhead, New York. Business development staff have already joined the Company in anticipation of the opening of this location. Subject to regulatory approvals, the Bank expects to open the branch in late 2026. The Company expects that a temporary office location in Riverhead will be operational by the end of the first quarter of 2026. At December 31, 2025, on a consolidated basis we had $2.38 billion in total assets, $200.3 million in total stockholders’ equity, $2.00 billion in total loans, $2.03 billion in total deposits and 194 full-time equivalent employees. 47 Table of Contents Critical Accounting Policies and Estimates We prepare our consolidated financial statements in conformity with GAAP. The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Our significant accounting policies and effects of new accounting pronouncements are discussed in detail in Note 1, “Summary of Significant Accounting Policies” to the accompanying Consolidated Financial Statements contained in Item 8. Material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for credit losses and goodwill. Allowance for Credit Losses The allowance for credit losses (“ACL”) is a valuation allowance for management’s estimate of expected credit losses in the loan portfolio. The process to determine expected credit losses utilizes analytic tools and judgment and is reviewed on a quarterly basis. When management is reasonably certain that a loan balance is not fully collectable, an analysis is completed and an allowance may be established or a full or partial charge-off could be recorded against the allowance. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance via a quantitative analysis which considers available information from internal and external sources related to past loan loss and prepayment experience and current conditions, as well as the incorporation of reasonable and supportable forecasts. Management evaluates a variety of factors including available published economic information in arriving at its forecast. Expected credit losses are estimated over the contractual term of the loans and adjusted for expected prepayments when appropriate. Also included in the allowance for credit losses are qualitative reserves that are expected, but, in management’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. Factors may include changes in lending policies and procedures, size and composition of the portfolio, experience and depth of lending management and the effect of external factors such as competition, legal and regulatory requirements, among others. The allowance is available for any loan that, in management’s judgment, should be charged-off. Although management uses the best information available, the level of the allowance for credit losses remains an estimate, which is subject to significant judgment and short-term change. Various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for credit losses. Such agencies may require the Company to make additional provisions for credit losses based upon information available to them at the time of their examination. The Bank considers its primary lending area to be the New York metro area. A substantial portion of the Bank’s loans are secured by real estate in this area. Accordingly, the ultimate collectability of the loan portfolio is susceptible to changes in market and economic conditions in this region. Future adjustments to the provision for credit losses and allowance for credit losses may be necessary due to economic, operating, regulatory and other conditions beyond the Company’s control. Goodwill Goodwill represents the excess of the purchase price over the net fair value of the acquired businesses. Goodwill is not amortized, but is tested for impairment at the reporting unit level, at least annually or more frequently whenever events or circumstances occur that indicate that it is more-likely-than-not that an impairment loss has occurred. In assessing impairment, the Company has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, we determine it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then we would not be required to perform an impairment test. 48 Table of Contents The quantitative impairment analysis requires a comparison of each reporting unit’s fair value to its carrying value to identify potential impairment. Goodwill impairment exists when a reporting unit’s carrying value of goodwill exceeds its implied fair value. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes, but may not be limited to, the selection of appropriate discount rates, the identification of relevant market comparables and the development of cash flow projections. The selection and weighting of the various fair value techniques may result in a higher or lower fair value. Judgment is applied in determining the weightings that are most representative of fair value. As of November 30, 2025, the Company elected to proceed to a quantitative calculation to compare the reporting unit's fair value with its carrying value. The results of the evaluation indicated that fair value exceeded the carrying value of the reporting unit. Annual goodwill impairment testing was performed as of November 30 and no impairment charges were incurred. Future unfavorable conditions could result in goodwill impairment. We continue to evaluate our qualitative assessment assumptions, which are subject to risks and uncertainties, including: (1) general macroeconomic conditions such as a deterioration in general economic conditions, limitations on accessing capital, fluctuations in foreign exchange rates, or other developments in equity and credit markets; (2) industry and market conditions such as a deterioration in the environment in which we operate, an increased competitive environment, a decline in market-dependent multiples or metrics (in both absolute terms and relative to peers), a change in the market for our products or services, or a regulatory or political development; (3) changes in cost factors such as increases in labor, or other costs that have a negative effect on earnings and cash flows; (4) overall financial performance for both actual and expected performance; (5) Entity and reporting unit–specific events such as changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; litigation; or a change in the composition or carrying amount of net assets; and (6) a sustained decrease in share price in both absolute terms and relative to peers, if applicable. See Note 1, “Summary of Significant Accounting Policies” and Note 10, “Goodwill and Other Intangible Assets” to the accompanying Consolidated Financial Statements contained in Item 8 for further details. 49 Table of Contents Results of Operations for the year ended December 31, 2025 compared to the year ended December 31, 2024 For the year ended December 31, 2025, we recognized net income of $7.5 million, or $1.00 per diluted share (including Series A preferred shares), compared to net income of $12.3 million, or $1.66 per diluted share (including Series A preferred shares) for the year ended December 31, 2024. The decrease in net income recorded for the year ended December 31, 2025 from the year ended December 31, 2024 resulted from an increase in the provision for credit losses, a decrease in non-interest income, and an increase in non-interest expense. These were partially offset by an increase in net interest income. The increase in the provision for credit losses was largely impacted by $14.2 million in net charge-offs in 2025. The decrease in non-interest income is primarily related to the decrease in the gain on sale of loans held-for-sale which was partially offset by the increases in loan servicing and fee income and service charges on deposit accounts. The increase in non-interest expense was primarily related to the increase in salaries and employees benefits and the one-time core system conversion expenses. Set forth below are our selected consolidated financial and other data. Our business is primarily the business of our Bank. This financial data is derived in part from, and should be read in conjunction with, our consolidated financial statements. December 31, (in thousands) 2025 2024 Selected Balance Sheet Data: Securities available-for-sale, at fair value $ 99,552 $ 83,755 Securities held-to-maturity 1,017 3,758 Loans 2,000,749 1,985,524 Total assets 2,383,096 2,312,110 Total deposits 2,028,387 1,954,283 Total stockholders' equity 200,266 196,638 Year Ended December 31, (dollars in thousands) 2025 2024 Selected Operating Data: Total interest income $ 130,479 $ 133,022 Total interest expense 70,002 79,930 Net interest income 60,477 53,092 Provision for credit losses 10,382 4,940 Total non-interest income 12,843 15,339 Total non-interest expense 52,984 47,112 Income before income taxes 9,954 16,379 Income tax expense 2,466 4,033 Net income 7,488 12,346 Selected Financial Data and Other Data: Return on average equity 3.73 % 6.45 % Return on average assets 0.33 % 0.55 % Yield on average interest earning assets 5.94 % 6.12 % Cost of average interest bearing liabilities 3.88 % 4.40 % Net interest rate spread 2.06 % 1.72 % Net interest margin 2.75 % 2.44 % Average equity to average assets 8.89 % 8.57 % 50 Table of Contents Analysis of Results of Operations Net Interest Income Net interest income is the primary source of the Company’s revenue. Net interest income is the difference between interest income on interest-earning assets, such as loans and investment securities, and the interest expense on interest-bearing deposits and other borrowings used to fund interest-earning and other assets or activities. Net interest income is affected by changes in interest rates and by the amount and composition of earning assets and interest-bearing liabilities, as well as the sensitivity of the balance sheet to changes in interest rates, including characteristics such as the fixed or variable nature of the financial instruments, contractual maturities, repricing frequencies, and loan prepayment behavior. Net interest income for the year ended December 31, 2025 was $60.5 million, an increase of 13.9% from $53.1 million for the year ended December 31, 2024. Net interest margin was 2.75% for the year ended December 31, 2025, an increase of 31 basis points from 2.44% for the year ended December 31, 2024. The Company’s total interest expense decreased by $9.9 million, or 12.4%, as the average cost of interest-bearing liabilities for the year ended December 31, 2025 was 3.88%, a decrease of 52 basis points, from 4.40% for the year ended December 31, 2024. However, total interest income decreased by $2.5 million, or 1.9%, as the average yield on interest-earning assets for the year ended December 31, 2025 was 5.94%, a decrease of 18 basis points from 6.12% for the year ended December 31, 2024. The following table presents daily average balances, interest, yield/cost, and net interest margin on a fully tax-equivalent basis for the periods presented: Year Ended December 31, 2025 2024 Average Average Average Average (dollars in thousands) Balance Interest Yield/Cost Balance Interest Yield/Cost Assets: Interest-earning assets Loans(1)(2) $ 1,987,356 $ 119,688 6.02 % $ 2,005,524 $ 122,970 6.13 % Investment securities(1) 97,273 5,690 5.85 % 98,238 5,991 6.10 % Interest-earning balances and other 111,446 5,101 4.58 % 70,238 4,061 5.78 % Total interest-earning assets 2,196,075 130,479 5.94 % 2,174,000 133,022 6.12 % Non interest-earning assets: Other assets 62,236 59,028 Total assets $ 2,258,311 $ 2,233,028 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings, NOW and money market deposits $ 1,177,032 $ 43,240 3.67 % $ 1,160,115 $ 51,457 4.44 % Time deposits 493,602 20,596 4.17 % 483,668 21,060 4.35 % Total interest-bearing deposits 1,670,634 63,836 3.82 % 1,643,783 72,517 4.41 % Borrowings 110,483 4,647 4.21 % 149,667 6,109 4.08 % Subordinated debentures 24,714 1,519 6.15 % 24,660 1,304 5.29 % Total interest-bearing liabilities 1,805,831 70,002 3.88 % 1,818,110 79,930 4.40 % Non-interest bearing deposits 223,564 196,595 Other liabilities 28,240 27,000 Total liabilities 2,057,635 2,041,705 Stockholders' equity 200,676 191,323 Total liabilities and stockholders' equity $ 2,258,311 $ 2,233,028 Net interest rate spread(3) 2.06 % 1.72 % Net interest income/margin(4) $ 60,477 2.75 % $ 53,092 2.44 % (1) There is no income tax exempt interest recorded for loans or investment securities for the periods presented. (2) Includes non-accrual loans. (3) Net interest spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (4) Net interest margin represents net interest income divided by average interest-earning assets. 51 Table of Contents The following table details the variances in net interest income caused by changes in interest rates and volume for the periods presented: Year Ended December 31, 2025 vs. 2024 Increase (decrease) due to change in: (in thousands) Volume Rate Total Interest income Loans $ (1,107) $ (2,175) $ (3,282) Investment securities (58) (243) (301) Interest-earning balances and other 1,806 (766) 1,040 Total interest income 641 (3,184) (2,543) Interest expense Savings, NOW and money market deposits 740 (8,957) (8,217) Time deposits 427 (891) (464) Borrowings (1,643) 181 (1,462) Subordinated debentures — 215 215 Total interest expense (476) (9,452) (9,928) Net increase in net interest income $ 1,117 $ 6,268 $ 7,385 Provision for Credit Losses The provision for credit losses was $10.4 million (including a $0.3 million provision for unfunded commitments) for the year ended December 31, 2025 compared to $4.9 million (including a $0.2 million provision for unfunded commitments) for the year ended December 31, 2024. Total net charge-offs were $14.2 million and $1.6 million for the years ended December 31, 2025 and 2024, respectively. For more information, see "Asset Quality - Allowance for Credit Losses.” Non-Interest Income Year Ended December 31, (in thousands) 2025 2024 Loan servicing and fee income $ 4,270 $ 3,690 Service charges on deposit accounts 750 469 Net gain on sale of loans held for sale 7,345 10,940 Net gain on sale of securities available-for-sale 215 31 Other income 263 209 Total non-interest income $ 12,843 $ 15,339 Non-interest income was $12.8 million for the year ended December 31, 2025, a decrease of $2.5 million from $15.3 million for the year ended December 31, 2024. The decrease in non-interest income is primarily related to a $3.6 million decrease in the net gain on sale of loans held for sale which was partially offset by a $0.6 million increase in loan servicing and fee income, a $0.3 million increase in service charges on deposit accounts and a $0.2 million increase in net gain on sale on securities available-for-sale. 52 Table of Contents Non-Interest Expense Year Ended December 31, (in thousands) 2025 2024 Salaries and employee benefits $ 27,886 $ 25,600 Occupancy and equipment 7,742 7,222 Data processing 1,753 2,096 Professional fees 3,149 3,079 Federal deposit insurance premiums 1,388 1,418 Conversion expenses 3,180 — Other expenses 7,886 7,697 Total non-interest expense $ 52,984 $ 47,112 Non-interest expense was $53.0 million for the year ended December 31, 2025, an increase of $5.9 million from $47.1 million for the year ended December 31, 2024. The increase in non-interest expense was primarily related to increases of $2.3 million in salaries and employees benefits and one-time core system conversion expenses of $3.2 million. The increase in salaries and employee benefits was primarily related to additional headcount to staff the new Port Jefferson branch and expansion of the C&I lending vertical and lower deferred loan origination costs partially offset by lower incentive compensation expense resulting from reduced lending activity. Income Taxes Income tax expense was $2.5 million for the year ended December 31, 2025, a decrease from $4.0 million for the year ended December 31, 2024. The decline in income tax expense reflects lower net income in the year ended December 31, 2025. The effective income tax rate for the year ended December 31, 2025 was 24.8% compared to 24.6% for the year ended December 31, 2024. Analysis of Financial Condition Investment Securities Our investment securities portfolio, which is structured with minimum credit exposure, is intended to provide us with adequate liquidity, flexibility in asset/liability management, and a source of stable income. Investment securities classified as available-for-sale are carried at fair value in the consolidated statements of financial condition, while investment securities classified as held-to-maturity are shown at amortized cost in the consolidated statements of financial condition. The following table summarizes the amortized cost and fair value of investment securities: Balance at December 31, 2025 2024 (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Investment securities available-for-sale: U.S. Treasury securities $ 4,495 $ 4,495 $ 19,995 $ 20,000 U.S. GSE residential mortgage-backed securities 18,055 18,143 11,016 10,645 U.S. GSE residential collateralized mortgage obligations 11,691 11,757 — — U.S. GSE commercial mortgage-backed securities 2,583 2,532 1,520 1,503 Collateralized loan obligations 32,758 32,664 32,271 32,477 Corporate bonds 30,250 29,961 20,282 19,130 Total investment securities available-for- sale 99,832 99,552 85,084 83,755 Investment securities held-to-maturity: U.S. GSE residential mortgage-backed securities 1,017 976 1,259 1,178 U.S. GSE commercial mortgage-backed securities — — 2,499 2,431 Total investment securities held-to-maturity 1,017 976 3,758 3,609 Total investment securities $ 100,849 $ 100,528 $ 88,842 $ 87,364 53 Table of Contents We continually evaluate our investment securities portfolio in response to established asset/liability management objectives, changing market conditions that could affect profitability, and the level of interest rate risk to which we are exposed. These evaluations may cause us to change the level of funds we deploy into investment securities, change the composition of our investment securities portfolio, and change the proportion of investments made into the available-for-sale and held-to-maturity investment categories. Our investment securities available-for-sale portfolio included gross unrealized gains of $0.6 million and gross unrealized losses of $0.9 million at December 31, 2025, compared to gross unrealized gains of $0.3 million and gross unrealized losses of $1.6 million at December 31, 2024. Management believes that all of the unrealized losses on individual investment securities at December 31, 2025 and 2024 are the result of fluctuations in interest rates and do not reflect deterioration in the credit quality of these investments. Accordingly, management considers these unrealized losses to be temporary in nature. We do not have the intent to sell these investment securities with unrealized losses and, more likely than not, will not be required to sell these investment securities before fair value recovers to amortized cost. The tables below illustrate the maturity distribution and weighted average yield and amortized cost of our investment securities as of December 31, 2025 and 2024, on a contractual maturity basis. Investment Securities Portfolio by Expected Maturities(1) Balance at December 31, 2025 Available-for-Sale Held-to-Maturity Amortized Weighted Amortized Weighted (dollars in thousands) Cost Average Yield Cost Average Yield U.S. GSE residential mortgage-backed securities Due after five years through ten years $ — — % $ 1,017 2.45 % Due after ten years 18,055 4.92 % — — % 18,055 4.92 % 1,017 2.45 % U.S. GSE residential collateralized mortgage obligations Due after ten years 11,691 5.33 % — — % 11,691 5.33 % — — % U.S. GSE commercial mortgage-backed securities Due after ten years 2,583 4.61 % — — % 2,583 4.61 % — — % U.S. Treasury securities Due in one year or less 4,495 3.55 % — — % 4,495 3.55 % — — % Collateralized loan obligations Due after five years through ten years 4,993 5.45 % — — % Due after ten years 27,765 5.52 % — — % 32,758 5.51 % — — % Corporate bonds Due after one year through five years 2,000 8.06 % — — % Due after five years through ten years 26,750 6.43 % — — % Due after ten years 1,500 7.00 % — — % 30,250 6.57 % — — % Total investment securities $ 99,832 5.59 % $ 1,017 2.45 % 54 Table of Contents Balance at December 31, 2024 Available-for-Sale Held-to-Maturity Amortized Weighted Amortized Weighted (dollars in thousands) Cost Average Yield Cost Average Yield U.S. GSE residential mortgage-backed securities Due after five years through ten years $ — — % $ 885 2.32 % Due after ten years 11,016 4.51 % 374 2.66 % 11,016 4.51 % 1,259 2.42 % U.S. GSE commercial mortgage-backed securities Due after one year through five years — — % 2,499 2.68 % Due after five years through ten years 1,520 4.62 % — — % 1,520 4.62 % 2,499 2.68 % U.S. Treasury securities Due in one year or less 19,995 4.37 % — — % 19,995 4.37 % — — % Collateralized loan obligations Due after five years through ten years 27,284 6.12 % — — % Due after ten years 4,987 6.10 % — — % 32,271 6.12 % — — % Corporate bonds Due after one year through five years 1,000 8.75 % — — % Due after five years through ten years 19,282 5.90 % — — % 20,282 6.04 % — — % Total investment securities $ 85,084 5.45 % $ 3,758 2.59 % (1) There is no income tax exempt interest recorded for investment securities for the periods presented. Loans At December 31, 2025, our loan portfolio totaled $2.00 billion, an increase of $15.2 million from $1.99 billion at December 31, 2024. The following table provides the composition of the Company’s loan portfolio by type at the dates indicated: At December 31, 2025 2024 Amount Percent Amount Percent (Dollars in thousands) Real estate: Residential $ 776,995 38.84 % $ 729,254 36.73 % Multifamily 541,083 27.04 % 550,570 27.73 % Commercial 525,569 26.27 % 546,257 27.51 % Total real estate 1,843,647 92.15 % 1,826,081 91.97 % Commercial and industrial 145,591 7.28 % 145,457 7.33 % Construction 11,081 0.55 % 13,483 0.68 % Consumer 430 0.02 % 503 0.02 % Total loans 2,000,749 100.00 % 1,985,524 100.00 % Allowance for credit losses 18,694 22,779 Total loans, net $ 1,982,055 $ 1,962,745 55 Table of Contents At December 31, 2025, the Company’s residential loan portfolio (including home equity loans) amounted to $777.0 million, with an average loan balance of $491 thousand and a weighted average loan-to-value ratio of 56%. Commercial real estate, multifamily and construction loans totaled $1.08 billion at December 31, 2025, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As discussed below, approximately 36% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 360% of capital at December 31, 2025 from 385% at December 31, 2024, with loans secured by office space accounting for 2.48% of the total loan portfolio and totaling $49.6 million at December 31, 2025. The Bank originates loans for its portfolio and for sale in the secondary market under a residential flow origination program. During the years ended December 31, 2025 and 2024, the Company sold $92.3 million and $38.5 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $2.1 million and $0.9 million, respectively. Residential loan originations were $246 million for the year ended December 31, 2025, representing the highest origination levels since 2019. During the years ended December 31, 2025 and 2024, the Company sold approximately $63.0 million and $112.7 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $5.2 million and $10.0 million, respectively. SBA loan originations and gains on sale continue to be lower due to a multitude of factors. High interest rates, changes to SBA standard operating procedures, a less favorable economic outlook for many business owners, the Bank’s prudent decision to tighten credit in 2025 and the government shutdown in the fourth quarter all adversely impacted the volume and approval of SBA loans and, therefore, gain on sale income. The Bank concluded 2025 with C&I loan originations of approximately $95.3 million for the year ended December 31, 2025. Based on its existing pipeline, the Bank expects C&I lending and deposit activity to grow in 2026. The following table provides information of our total loan portfolio at December 31, 2025 by the earlier of the maturity or next repricing date. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. Adjustable rate loans are included in the period which their interest rates are next scheduled to adjust. The table does not reflect the impact of prepayments and scheduled principal amortization. Commercial Commercial and Time to Reprice/Mature Residential Multifamily Real Estate Industrial Construction Consumer Total (in thousands) One year or less $ 245,993 $ 151,144 $ 200,210 $ 119,057 $ 6,062 $ — $ 722,466 More than one year to five years 416,418 376,539 313,569 20,194 5,019 24 1,131,763 More than five years to fifteen years 41,592 13,400 9,586 5,000 — 406 69,984 After fifteen years 72,992 — 2,204 1,340 — — 76,536 Total $ 776,995 $ 541,083 $ 525,569 $ 145,591 $ 11,081 $ 430 $ 2,000,749 The following table presents the Company’s loans held for investment as of December 31, 2025 with maturity or next repricing due after December 31, 2026 according to rate type and loan category: Due After December 31, 2026 (in thousands) Fixed Adjustable Total Real estate: Residential $ 119,579 $ 411,423 $ 531,002 Multifamily 29,676 360,263 389,939 Commercial 45,128 280,231 325,359 Total real estate 194,383 1,051,917 1,246,300 Commercial and industrial 21,446 5,088 26,534 Construction 5,019 — 5,019 Consumer 430 — 430 Total loans $ 221,278 $ 1,057,005 $ 1,278,283 56 Table of Contents Commercial Real Estate Statistics The Company continues to actively manage its Multifamily and Commercial Real Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 360% of capital at December 31, 2025 from 385% at December 31, 2024. The Company will selectively explore Commercial Real Estate opportunities with an emphasis on relationship based Commercial Real Estate lending. A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multifamily and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans as of December 31, 2025 is not significant at $11.1 million, all at floating interest rates. As shown below, as of December 31, 2025, 25% of the loan balances in these combined portfolios will either have a rate reset or mature in 2026, with another 56% with rate resets or maturing in 2027. Multifamily Market Rent Portfolio Fixed Rate Reset/Maturity Schedule Multifamily Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule Calendar Period (Loan Data as of 12/31/2025) # Loans Total O/S ($000's omitted) Avg O/S ($000's omitted) Avg Interest Rate Calendar Period (Loan Data as of 12/31/2025) # Loans Total O/S ($000's omitted) Avg O/S ($000's omitted) Avg Interest Rate 2026 36 $ 107,538 $ 2,987 3.73 % 2026 21 $ 42,814 $ 2,039 3.84 % 2027 69 181,095 2,625 4.42 % 2027 51 121,488 2,382 4.22 % 2028 15 20,711 1,381 6.14 % 2028 12 10,015 835 7.07 % 2029 6 4,849 808 7.70 % 2029 4 4,272 1,068 6.38 % 2030 8 20,268 2,534 6.19 % 2030 7 13,617 1,945 6.32 % 2031+ 4 13,173 3,293 4.21 % 2031+ 2 226 113 5.50 % Fixed Rate 138 347,634 2,519 4.45 % Fixed Rate 97 192,432 1,984 4.48 % Floating Rate 2 568 284 9.07 % Floating Rate 1 449 449 9.00 % Total 140 $ 348,202 $ 2,487 4.45 % Total 98 $ 192,881 $ 1,968 4.49 % CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule Calendar Period (Loan Data as of 12/31/2025) # Loans Total O/S ($000's omitted) Avg O/S ($000's omitted) Avg Interest Rate 2026 40 $ 54,861 $ 1,372 5.73 % 2027 85 148,887 1,752 4.95 % 2028 28 30,444 1,087 6.65 % 2029 5 5,931 1,186 6.70 % 2030 14 13,511 965 6.98 % 2031+ 9 2,910 323 5.50 % Fixed Rate 181 256,544 1,417 5.47 % Floating Rate 9 9,575 1,064 8.68 % Total CRE-Inv. 190 $ 266,119 $ 1,401 5.59 % 57 Table of Contents Stabilized Multifamily Pro Forma Stress Results The table below reflects a proforma stressed evaluation of the Bank’s Multifamily stabilized loan portfolio as of December 31, 2025, using the primary assumption for a revised Debt Service Coverage Ratio (“DSCR”) calculation, for all loans where the current interest rate is below 6%. The current balance for these loans is recast at 5.75% (despite lower current market rates) with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value (“LTV”) assumption resets all loans using a 6% cap rate (despite lower current cap rates) and the last reported property net operating income (“NOI”) to determine an implied property valuation and based on the current loan balance the resultant LTV. Multifamily Stabilized Rent Portfolio (Loan Data as of 12/31/2025) DSCR Range # Loans Total O/S ($000's omitted) % of Total MF Portfolio Current Weighted Average LTV Projected Weighted Average LTV 1.0 9 $ 13,877 3 % 60 % 97 % 1.0 x 1.2 13 35,520 7 % 65 % 75 % 1.2 x 1.3 17 43,107 8 % 63 % 70 % 1.3 x 1.5 24 57,106 10 % 63 % 61 % 1.5 x 2.0 21 34,380 6 % 58 % 56 % x 2.0 14 8,891 2 % 44 % 36 % Total 98 $ 192,881 36 % 61 % 66 % As reflected above, the results show approximately 3%, or 9 loans totaling $14 million of the total multifamily portfolio would have proforma DSCR’s less than 1x while maintaining projected weighted average LTV’s under 100%. Approximately 97% or 89 loans totaling $179 million would possess DSCR’s greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. Additionally, 74% of the stabilized loans and 73% of the entire multifamily portfolio are further secured with personal guarantees from the borrowers. Based on the maturities and rate resets in the previous 12 months, we believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively. Of the previous 12 months maturities and rate resets, 22% of the loan pool successfully refinanced with other institutions and the balance remained with the Bank. 58 Table of Contents Rental breakdown of Multifamily portfolio The table below segments our portfolio of loans secured by Multifamily properties based on rental terms and location as of December 31 2025. As shown below, as of December 31, 2025, 64% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens. Multifamily Loan Portfolio - Loans by Rent Type (Loan Data as of 12/31/2025) Rent Type # Notes Outstanding Loan Balance % of Total Multifamily Avg Loan Size LTV Current DSCR Avg # of Units ($000's omitted) ($000's omitted) Market 140 $ 348,202 64 % $ 2,487 61.4 % 1.45 11 Location Manhattan 6 $ 9,792 2 % $ 1,632 50.6 % 2.13 15 Other NYC 94 $ 261,184 48 % $ 2,779 61.2 % 1.42 9 Outside NYC 40 $ 77,226 14 % $ 1,931 63.2 % 1.48 14 Stabilized 98 $ 192,881 36 % $ 1,968 61.4 % 1.46 12 Location Manhattan 7 $ 10,329 2 % $ 1,476 47.7 % 1.71 19 Other NYC 80 $ 165,540 31 % $ 2,069 62.2 % 1.43 11 Outside NYC 11 $ 17,012 3 % $ 1,547 62.6 % 1.59 14 Office Property Exposure The Bank’s exposure to the Office market is not significant. Loans secured by office space accounted for 2.48% of the total loan portfolio as of December 31, 2025, with a total balance of $49.6 million, of which less than 1% is located in Manhattan. At December 31, 2025, this portfolio has a 2.30x weighted average DSCR, a 52% weighted average LTV and less than $350,000 of exposure in Manhattan. Asset Quality Nonperforming Assets In the fourth quarter of 2025, the Company initiated a strategic credit cleanup and removed $9.6 million of non-performing loans (“NPLs”) from the balance sheet. Through proactive and focused NPL resolution, we have improved our credit risk profile with a combination of charge-offs and loan sales. The following table presents information regarding nonperforming assets for the periods presented. Balance at December 31, (dollars in thousands) 2025 2024 Nonaccrual loans $ 21,604 $ 16,368 Other real estate owned 650 — Total nonperforming assets $ 22,254 $ 16,368 Total nonaccrual loans as a percentage of loans held-for- investment 1.08 % 0.82 % Total non-performing loans as a percentage of loans held-for- investment 1.08 % 0.82 % Total non-performing loans as a percentage of total assets 0.91 % 0.71 % Total non-performing assets as a percentage of total assets 0.93 % 0.71 % Allowance for credit losses as a percentage of non-performing loans 86.53 % 139.17 % 59 Table of Contents Total nonaccrual loans were $21.6 million at December 31, 2025, an increase from total nonaccrual loans of $16.4 million at December 31, 2024. The Bank had one other real estate owned property at December 31, 2025 with a $650 thousand carrying value. There were no properties in OREO at December 31, 2024. Reserve for Unfunded Commitments The Company maintains a reserve, recorded in other liabilities, associated with unfunded loan commitments accepted by borrowers. The amount of the reserve was $0.6 million at December 31, 2025 and $0.3 million at December 31, 2024. This reserve is determined based upon the outstanding volume of loan commitments at the end of each period. Any increases or reductions in this reserve are recognized in the provision for credit losses. Allowance for Credit Losses The allowance for credit losses was $18.7 million at December 31, 2025, a decrease of $4.1 million from $22.8 million at December 31, 2024. The ratio of the allowance for credit losses to total loans (excluding loans held for sale) was 0.93% at December 31, 2025, inclusive of a $2.1 million allowance on individually analyzed loans, versus 1.15% at December 31, 2024, inclusive of a $3.2 million allowance on individually analyzed loans. In the fourth quarter of 2025, the Company initiated a strategic credit cleanup and recorded net charge-offs of $9.6 million. The $9.6 million consisted of a $4.0 million partial charge-off on a C&I loan that had deteriorated to non-performing status during the quarter. This loan is to a borrower whose business has been negatively impacted by tariffs and other economic challenges. In conjunction with the charge-off, a $1.0 million specific reserve has been established for this loan. The remaining $5.6 million was comprised of full and partial charge-offs on non-performing loans which had previously established specific reserves of $3.6 million. Of the $5.6 million charge-off, $709 thousand related to the sale of $5.0 million of one- to four-family residential non-performing loans. The Company experienced $14.2 million in net charge-offs during the year ended December 31, 2025, an increase of $12.6 million compared to net charge-offs of $1.6 million during the year ended December 31, 2024. The Company has recorded recoveries of $34 thousand and $18 thousand during the years ended December 31, 2025 and 2024, respectively. The following table presents the allocation of the allowance for credit losses by loan category for the periods presented: At December 31, 2025 2024 % of % of Total Total (dollars in thousands) Amount Loans Amount Loans Residential real estate $ 5,035 0.65 % $ 6,236 0.86 % Multifamily 3,387 0.63 % 5,284 0.96 % Commercial real estate 5,123 0.97 % 5,605 1.03 % Commercial and industrial 4,912 3.37 % 5,447 3.74 % Construction 215 1.94 % 180 1.34 % Consumer 22 5.12 % 27 5.37 % Total allowance for credit losses $ 18,694 0.93 % $ 22,779 1.15 % 60 Table of Contents The following table presents information related activity in the allowance for credit losses for the periods presented: Year Ended December 31, (dollars in thousands) 2025 2024 Beginning balance $ 22,779 $ 19,658 Provision for credit losses 10,070 4,750 Charge-Offs: Residential real estate (709) (280) Multifamily (33) (765) Commercial real estate (1,609) (30) Commercial and industrial (11,838) (572) Construction — — Consumer — — Total loan charge-offs (14,189) (1,647) Recoveries: Commercial and industrial 34 18 Total recoveries 34 18 Total net charge-offs (14,155) (1,629) Ending balance $ 18,694 $ 22,779 Allowance for credit losses to total loans held-for- investment 0.93 % 1.15 % Net charge-offs to average loans held-for-investment (0.71) % (0.08) % Sources of Funds and Liquidity Liquidity management is defined as the ability of the Company and the Bank to meet their financial obligations on a continuous basis without material loss or disruption of normal operations. These obligations include the withdrawal of deposits on demand or at their contractual maturity, the repayment of borrowings as they mature, funding new and existing loan commitments and the ability to take advantage of business opportunities as they arise. Asset liquidity is provided by short-term investments, such as fed funds sold, the marketability of securities available-for-sale and interest-bearing deposits due from the Federal Reserve Bank of New York, FHLB and correspondent banks, which totaled $308.5 million and $246.6 million at December 31, 2025 and 2024, respectively. These liquid assets may include assets that have been pledged primarily against municipal deposits or borrowings. Liquidity is also provided by the maintenance of a base of core deposits, cash and non-interest-bearing deposits due from banks, the ability to sell or pledge marketable assets and access to lines of credit. Liquidity is continuously monitored, thereby allowing management to better understand and react to emerging balance sheet trends, including temporary mismatches with regard to sources and uses of funds. After assessing actual and projected cash flow needs, management seeks to obtain funding at the most economical cost. These funds can be obtained by converting liquid assets to cash or by attracting new deposits or other sources of funding. Many factors affect the Company’s ability to meet liquidity needs, including variations in the markets served, loan demand, its asset/liability mix, its reputation and credit standing in its markets and general economic conditions. Borrowings and the scheduled amortization of investment securities and loans are more predictable funding sources. Deposit flows and securities prepayments are somewhat less predictable as they are often subject to external factors. Among these are changes in the local and national economies, competition from other financial institutions and changes in market interest rates. The Liquidity and Wholesale Funding Policy of the Bank establishes specific policies and operating procedures governing liquidity levels to assist management in developing plans to address future and current liquidity needs. Management monitors the rates and cash flows from the loan and investment portfolios while also examining the maturity structure and volatility characteristics of liabilities to develop an optimum asset/liability mix. Available funding sources include retail, commercial and municipal deposits, purchased liabilities and stockholders’ equity. Daily, management receives a current cash position update to ensure that all obligations are satisfied. On a weekly basis, appropriate senior management receives a current liquidity position report and a ninety day forecasted cash flow to ensure that all short-term obligations will be met and there is sufficient liquidity available. 61 Table of Contents As of December 31, 2025, we held $304.8 million of deposits that exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. At December 31, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $776.9 million, or approximately 255% of uninsured deposit balances. Deposits We provide a range of deposit services, including non-interest bearing demand accounts, interest-bearing demand and savings accounts, money market accounts and time deposits. These accounts generally pay interest at rates established by management based on competitive market factors and management’s desire to increase or decrease certain types or maturities of deposits. Deposits continue to be our primary funding source. Total deposits at December 31, 2025 were $2.03 billion, an increase of $74.1 million from total deposits of $1.95 billion at December 31, 2024. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 85% of total deposits at December 31, 2025. Time deposits of $501.0 million are scheduled to mature within the next 12 months. Based on historical experience, the Company expects to be able to replace a substantial portion of those maturing deposits with comparable deposit products. The following is our average deposits and weighted-average interest rates paid thereon for the periods presented: Year Ended December 31, 2025 2024 Average Average Average Average (dollars in thousands) Balance Rate Balance Rate Non-interest bearing demand $ 223,564 0.00 % $ 196,595 0.00 % Savings 44,577 2.43 % 48,749 2.21 % NOW 692,339 3.65 % 631,267 4.56 % Money market 440,116 3.83 % 480,099 4.49 % Time deposits 493,602 4.17 % 483,668 4.35 % Total average deposits $ 1,894,198 3.37 % $ 1,840,378 3.94 % The Company had municipal deposits of $700.7 million at December 31, 2025, which comprised 34.5% of total deposits, an increase of $191.4 million or 37.6% from $509.3 million at December 31, 2024. Our sources of wholesale funding included brokered certificates of deposit, listing service certificates of deposit and insured cash sweep (“ICS”) reciprocal deposits in excess of 20% of total liabilities, which balances totaled approximately $110.0 million, $1.0 million and $0, or 5.4%, 0.0% and 0.0% of total deposits, respectively, at December 31, 2025. We utilized brokered certificates of deposit and listing service certificates of deposit as alternatives to other forms of wholesale funding, including borrowings, when interest rates and market conditions favor the use of such deposits. For a portion of our brokered certificates of deposit, we utilized interest rate swap contracts to effectively extend their duration and to fix their cost. As of December 31, 2025 and 2024, we held $108.2 million and $106.4 million, respectively, of time deposits of more than $250,000. The following table sets forth the maturity of these time deposits as of December 31, 2025: December 31, (in thousands) 2025 Three months or less $ 43,886 Over three months through twelve months 61,909 Over one year through three years 2,101 Over three years 266 Total $ 108,162 See Note 6, “Deposits” to the accompanying Consolidated Financial Statements contained in Item 8 for additional details. 62 Table of Contents Borrowings The total carrying value of our borrowings was $125.5 million at December 31, 2025, a decrease of $7.0 million from $132.5 million at December 31, 2024, due to the payoff of two FHLB advances that matured in 2025. At December 31, 2025, $40.5 million of these borrowings were classified as short-term, while the remaining was classified as long-term. Short-term borrowings are comprised of short-term FHLB advances due within 12 months. Long-term funding is comprised of long-term FHLB advances and subordinated debentures. The Company will prepay FHLB advances from time to time as funding needs change. See Note 7, “Borrowings” and Note 8, “Subordinated Debentures” to the accompanying Consolidated Financial Statements contained in Item 8 for additional details. In October 2020, the Company issued $25 million of 10-year fixed-to-floating rate subordinated notes with a coupon rate of 5.00% fixed for the first five years. The Notes may now be redeemed by the Company and have a stated maturity of October 15, 2030, and bear interest until the maturity date or early redemption date at a variable rate equal to the then benchmark rate, which is a Three-Month Term Secured Overnight Financing Rate (SOFR) plus 487.4 basis points. As of December 31, 2025, the variable interest rate was 8.76%. The Company used a portion of the net proceeds to pay off an existing holding company note in October 2020 and used the remainder of the net proceeds for acquisition financing and general corporate purposes, including contributing equity capital to the Bank. At December 31, 2025, the Bank had a total borrowing capacity of $814.3 million at the FHLB, of which $704.5 million was used to collateralize municipal deposits and $100.7 million was utilized for term advances. At December 31, 2025, the Bank had a $97.3 million collateralized line of credit from the Federal Reserve Bank of New York discount window with no outstanding borrowings. At December 31, 2025, the Bank had access to approximately $92 million in unsecured lines of credit extended by correspondent banks, if needed, for short-term funding purposes. No borrowings were outstanding under lines of credit with correspondent banks at December 31, 2025. Derivatives We utilize derivative instruments in the form of interest rate swaps to hedge our exposure to interest rate risk in conjunction with our overall asset/liability management process. In accordance with accounting requirements, we formally designate all of our hedging relationships as either fair value hedges or cash flow hedges, and document the strategy for undertaking the hedge transactions and its method of assessing ongoing effectiveness. At December 31, 2025, our derivative instruments were comprised of interest rate swaps with a total notional amount of $125.0 million. These instruments are intended to manage the interest rate exposure relating to certain brokered certificates of deposit and certain fixed rate residential mortgages. Additional information regarding our use of interest rate derivatives is presented in Note 1 and Note 9 to Consolidated Financial Statements contained in Item 8. Off-Balance Sheet Arrangements The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated financial statements. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. 63 Table of Contents Commitments to extend credit are agreements to lend to customers provided there are no violations of material conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the customer. Collateral required varies, but may include accounts receivable, inventory, equipment, real estate and income-producing commercial properties. At December 31, 2025 and 2024, commitments to originate loans and commitments under unused lines of credit for which the Bank is obligated amounted to approximately $160.9 million and $130.3 million, respectively. Letters of credit are conditional commitments guaranteeing payments of drafts in accordance with the terms of the letter of credit agreements. Commercial letters of credit are used primarily to facilitate trade or commerce and are also issued to support public and private borrowing arrangements, bond financings and similar transactions. Collateral may be required to support letters of credit based upon management’s evaluation of the creditworthiness of each customer. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. At December 31, 2025 and 2024, letters of credit outstanding were both approximately $0.8 million. Capital Resources Total stockholders’ equity was $200.3 million at December 31, 2025, an increase of $3.7 million from stockholders’ equity of $196.6 million at December 31, 2024. The increase was primarily due to an increase of $4.5 million in retained earnings and a decrease of $0.7 million in accumulated other comprehensive loss. The increase in retained earnings was due primarily to net income of $7.5 million for the year ended December 31, 2025, which was offset by $3.0 million of dividends declared. The accumulated other comprehensive loss at December 31, 2025 was 0.34% of total equity and was comprised of a $0.2 million after tax net unrealized loss on the investment portfolio and a $0.5 million after tax net unrealized loss on derivatives. We are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and the regulatory framework for prompt corrective action prescribe specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. We use our capital primarily for our lending activities as well as acquisitions and expansions of our business and other operating requirements. In addition to establishing the minimum regulatory requirements, the regulations limit the Bank’s ability to pay dividends to the Company and to pay certain compensation to its executives if the Bank does not hold a capital conservation buffer consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements. The Bank’s capital conservation buffer was greater than 2.5% of risk-weighted assets at December 31, 2025. The Bank capital level is characterized as "well-capitalized" under the Basel III Capital Rules. A summary of the Bank’s regulatory capital amounts and ratios are presented below: December 31, (dollars in thousands) 2025 2024 Total capital $ 224,239 $ 220,696 Tier 1 capital 204,431 201,744 Common equity tier 1 capital 204,431 201,744 Total capital ratio 14.15 % 14.58 % Tier 1 capital ratio 12.90 % 13.32 % Common equity tier 1 capital ratio 12.90 % 13.32 % Tier 1 leverage ratio 9.05 % 9.13 % 64 Table of Contents Under a policy of the Federal Reserve applicable to bank holding companies with less than $3.0 billion in consolidated assets, the Company is not subject to consolidated regulatory capital requirements. On October 5, 2023, the Company announced that the Board of Directors approved a share repurchase program. Under the repurchase program, the Company may repurchase up to 366,050 shares of its common stock, or approximately 5% of its then outstanding shares. The timing and amount of purchases will be dictated by a number of factors. The repurchase program permits shares to be repurchased in the open market as conditions allow, or in privately negotiated transactions, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. During the year ended December 31, 2025, the Company repurchased 81,975 shares of its common stock at an aggregate cost of $1.8 million. As of December 31, 2025, 284,075 shares remained available for repurchase under the Company’s share repurchase program.