Quarterly report
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Table of Contents ( Mark One ) ☑ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington , D.C. 20549 FORM 10 - Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 ( d ) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30 , 2026 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 ( d ) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from Commission File Number : 001-40589 to NorthEast Community Bancorp , Inc. ( Exact name of registrant as specified in its charter ) Maryland ( State or other jurisdiction of incorporation or organization ) 86-3173858 ( I.R.S. Employer Identification Number ) Title of each class Common Stock , par value $ 0.01 per share 325 Hamilton Avenue White Plains , New York 10601 ( Address of Principal Executive Offices ) ( 914 ) 684-2500 ( Registrant's telephone number , including area code ) Securities registered pursuant to Section 12 ( b ) of the Act : Trading Symbol ( s ) NECB Name of each exchange on which registered The Nasdaq Stock Market LLC Indicate by check mark whether the registrant ( 1 ) has filed all reports required to be filed by Section 13 or 15 ( d ) of the Securities Exchange Act of 1934 during the preceding 12 months ( or for such shorter period that the registrant was required to file such reports ) , and ( 2 ) has been subject to such filing requirements for the past 90 days . Yes ☑ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S - T ( $ 232.405 of this chapter ) during the preceding 12 months ( or for such shorter period that the registrant was required to submit such files ) . Yes ☑ No ☐ Indicate by check mark whether the registrant is a large accelerated filer , an accelerated filer , a non - accelerated filer , a smaller reporting company , or an emerging growth company . See the definitions of " large accelerated filer , ” “ accelerated filer , " " smaller reporting company , " and " emerging growth company " in Rule 12b - 2 of the Exchange Act . Large accelerated filer Non - accelerated filer ☐ ப Accelerated filer Smaller reporting company ☑ ☑ Emerging growth company ☑ If an emerging growth company , indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 ( a ) of the Exchange Act . ☐ Indicate by check mark whether the registrant is a shell company ( as defined in Rule 12b - 2 of the Exchange Act ) . Yes ☐ No ☑ As of August 5 , 2026 , there were 13,766,059 shares of the registrant's common stock outstanding .
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Table of Contents 2 TABLE OF CONTENTS ` Page Part I Financial Information 3 Item 1. Financial Statements 3 Consolidated Statements of Financial Condition as of June 30, 2026 and December 31, 2025 (Unaudited) 3 Consolidated Statements of Income for the Three and Six Months ended June 30, 2026 and 2025 (Unaudited) 5 Consolidated Statements of Comprehensive Income for the Three and Six Months ended June 30, 2026 and 2025 (Unaudited) 6 Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months ended June 30, 2026 and 2025 (Unaudited) 7 Consolidated Statements of Cash Flows for the Six Months ended June 30, 2026 and 2025 (Unaudited) 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 10 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3. Quantitative and Qualitative Disclosures About Market Risk 46 Item 4. Controls and Procedures 47 Part II Other Information 48 Item 1. Legal Proceedings 48 Item 1A. Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3. Defaults Upon Senior Securities 48 Item 4. Mine Safety Disclosures 48 Item 5. Other Information 49 Item 6. Exhibits 49 Exhibit Index 50 Signatures 51
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Table of Contents 3 PART I —FINANCIAL INFORMATION Item 1. Financial Statements NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) June 30, December 31, 2026 2025 (In thousands, except shareand per share amounts) ASSETS Cash and amounts due from depository institutions $ 9,473 $ 10,456 Interest-bearing deposits 63,941 70,719 Total cash and cash equivalents 73,414 81,175 Certificates of deposit 100 100 Equity securities 27,327 26,570 Securities held-to-maturity (net of allowance for credit losses of $135 and $126, respectively) 17,751 18,315 Loans receivable 1,919,908 1,860,066 Deferred loan (fees) costs, net (149) 268 Allowance for credit losses (4,752) (4,731) Net loans 1,915,007 1,855,603 Premises and equipment, net 25,021 25,377 Investments in restricted stock, at cost 543 410 Bank owned life insurance 26,797 26,433 Accrued interest receivable 12,189 12,228 Property held for investment 1,315 1,334 Right of Use Assets – Operating 4,296 4,656 Right of Use Assets – Financing 342 343 Other assets 11,081 10,964 Total assets $2,115,183 $2,063,508 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Deposits: Non-interest bearing $ 325,415 $ 271,924 Interest bearing 1,211,128 1,344,977 Total deposits 1,536,543 1,616,901 Advance payments by borrowers for taxes and insurance 2,562 2,352 Borrowings 190,000 70,000 Lease Liability – Operating 4,467 4,796 Lease Liability – Financing 454 434 Accounts payable and accrued expenses 18,589 17,325 Total liabilities 1,752,615 1,711,808 See notes to interim unaudited consolidated financial statements.
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Table of Contents 4 NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (continued) (Unaudited) June 30, December 31, 2026 2025 (In thousands, except shareand per share amounts) Stockholders’ equity: Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding $ — $ — Common stock, $0.01 par value; 75,000,000 shares authorized; 13,771,951 shares and 13,963,432 shares outstanding, respectively 138 140 Additional paid-in capital 108,383 111,575 Unearned Employee Stock Ownership Plan (“ESOP”) shares (4,957) (5,218) Retained earnings 258,746 244,970 Accumulated other comprehensive income 258 233 Total stockholders’ equity 362,568 351,700 Total liabilities and stockholders’ equity $2,115,183 $2,063,508 See notes to interim unaudited consolidated financial statements.
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Table of Contents 5 NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands, except (In thousands, except per share amounts) per share amounts) INTEREST INCOME: Loans $ 35,174 $ 36,740 $ 70,216 $ 73,622 Interest-earning deposits 554 1,027 1,156 2,108 Securities 332 272 657 516 Total Interest Income 36,060 38,039 72,029 76,246 INTEREST EXPENSE: Deposits 10,610 12,053 22,012 25,986 Borrowings 790 902 1,213 902 Financing lease 10 10 20 20 Total Interest Expense 11,410 12,965 23,245 26,908 Net Interest Income 24,650 25,074 48,784 49,338 Provision for credit loss 860 — 860 237 Net Interest Income after Provision for Credit Loss 23,790 25,074 47,924 49,101 NON-INTEREST INCOME: Other loan fees and service charges 549 611 1,218 1,351 Earnings on bank owned life insurance 185 170 364 336 Unrealized (loss) gain on equity securities (122) 51 (243) 351 Other 30 26 99 55 Total Non-Interest Income 642 858 1,438 2,093 NON-INTEREST EXPENSES: Salaries and employee benefits 5,817 5,650 11,989 11,583 Occupancy expense 787 743 1,661 1,489 Equipment 221 253 444 470 Outside data processing 725 758 1,521 1,494 Advertising 43 123 86 225 Real estate owned expense — 247 — 277 Other 3,026 2,734 5,797 5,589 Total Non-Interest Expenses 10,619 10,508 21,498 21,127 INCOME BEFORE PROVISION FOR INCOME TAXES 13,813 15,424 27,864 30,067 PROVISION FOR INCOME TAXES 4,018 4,254 8,117 8,330 NET INCOME $ 9,795 $ 11,170 $ 19,747 $ 21,737 EARNINGS PER COMMON SHARE – BASIC $ 0.75 $ 0.85 $ 1.50 $ 1.65 EARNINGS PER COMMON SHARE – DILUTED 0.72 0.82 1.46 1.60 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC 13,135 13,216 13,155 13,204 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – DILUTED 13,538 13,568 13,533 13,563 See notes to interim unaudited consolidated financial statements.
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Table of Contents 6 NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands) (In thousands) Net Income $ 9,795 $ 11,170 $ 19,747 $ 21,737 Other comprehensive income (loss): Defined benefit pension: Reclassification adjustments out of accumulated other comprehensive income (loss): Amortization of actuarial gain (6) (5) (15) (15) Actuarial gain arising during period 29 19 50 9 Total 23 14 35 (6) Income tax (effect) benefit¹ (6) (5) (10) 2 Total other comprehensive income (loss) 17 9 25 (4) Total Comprehensive Income $ 9,812 $ 11,179 $ 19,772 $ 21,733 ¹Amounts are included in provision for income taxes in the consolidated statements of income. See notes to interim unaudited consolidated financial statements.
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Table of Contents 7 NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY Three and Six Months Ended June 30, 2026 and 2025 (Unaudited) Accumulated Additional Other Number of Common Paid- in Unearned Retained Comprehensive Shares, net Stock Capital ESOP Shares Earnings Income Total (In thousands, except share and per share amounts) Balance – December 31, 2025 13,963,432 $ 140 $ 111,575 $ (5,218) $ 244,970 $ 233 $ 351,700 Net income — — — — 9,952 — 9,952 Other comprehensive income — — — — — 8 8 Cash dividend declared ($0.20 per share) — — — — (2,658) — (2,658) Stock repurchases (163,265) (2) (3,607) — — — (3,609) Compensation expense related to restricted stock awards — — 308 — — — 308 Compensation expense related to stock options — — 239 — — — 239 Stock option exercise 15,240 — 37 — — — 37 ESOP shares earned — — 178 130 — — 308 Balance - March 31, 2026 13,815,407 $ 138 $ 108,730 $ (5,088) $ 252,264 $ 241 $ 356,285 Net income — — — — 9,795 — 9,795 Other comprehensive income — — — — — 17 17 Cash dividend declared ($0.25 per share) — — — — (3,313) — (3,313) Stock repurchases (43,456) — (1,060) — — — (1,060) Compensation expense related to restricted stock awards — — 308 — — — 308 Compensation expense related to stock options — — 213 — — — 213 ESOP shares earned — — 192 131 — — 323 Balance – June 30, 2026 13,771,951 $ 138 $ 108,383 $ (4,957) $ 258,746 $ 258 $ 362,568 Accumulated Additional Other Number of Common Paid- in Unearned Retained Comprehensive Shares, net Stock Capital ESOP Shares Earnings Income Total (In thousands, except share and per share amounts) Balance – December 31, 2024 14,016,254 $ 140 $ 110,091 $ (6,088) $ 213,974 $ 224 $ 318,341 Net income — — — — 10,567 — 10,567 Other comprehensive loss — — — — — (13) (13) Cash dividend declared ($0.20 per share) — — — — (2,683) — (2,683) Stock repurchases — — — — — — — Compensation expense related to restricted stock awards — — 293 — — — 293 Compensation expense related to stock options — — 185 — — — 185 Stock option exercise 7,122 — — — — — — ESOP shares earned — — 302 218 — — 520 Balance - March 31, 2025 14,023,376 $ 140 $ 110,871 $ (5,870) $ 221,858 $ 211 $ 327,210 Net income — — — — 11,170 — 11,170 Other comprehensive income — — — — — 9 9 Cash dividend declared ($0.20 per share) — — — — (2,683) — (2,683) Compensation expense related to restricted stock awards — — 293 — — — 293 Compensation expense related to stock options — — 186 — — — 186 ESOP shares earned — — 274 217 — — 491 Balance - June 30, 2025 14,023,376 $ 140 $ 111,624 $ (5,653) $ 230,345 $ 220 $ 336,676 See notes to interim unaudited consolidated financial statements.
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Table of Contents 8 NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2026 2025 (In thousands) Cash Flows from Operating Activities: Net income $ 19,747 $ 21,737 Adjustments to reconcile net income to net cash provided by operating activities: Net (accretion) amortization of securities premiums and discounts (5) 3 Provision for credit losses 860 237 Depreciation 587 597 Net accretion of deferred loan fees and costs (116) (244) Deferred income tax benefit (541) (242) Unrealized loss (gain) recognized on equity securities 243 (351) Earnings on bank owned life insurance (364) (336) ESOP compensation expense 631 1,011 Compensation expense related to stock options 452 371 Compensation expense related to restricted stock 616 586 Decrease in accrued interest receivable 39 1,362 Decrease in other assets 805 1,094 Increase in accounts payable and accrued expenses 280 741 Net Cash Provided by Operating Activities 23,234 26,566 Cash Flows from Investing Activities: Net (increase) decrease in loans (60,279) 18,915 Net proceeds from loan participation 423 557 Principal repayments on securities held-to-maturity 1,031 485 Purchase of securities held-to-maturity (470) (270) Purchase of marketable equity securities (1,000) (3,000) Purchase of restricted stock (133) (688) Purchases of premises and equipment (231) (1,133) Net Cash (Used in) Provided by Investing Activities (60,659) 14,866 Cash Flows from Financing Activities: Net decrease in deposits (80,358) (191,214) Net proceeds from borrowings 120,000 135,000 Stock repurchases (4,669) — Stock option exercised 37 — Increase in advance payments by borrowers for taxes and insurance 210 803 Cash dividends paid (5,556) (4,907) Net Cash Provided by (Used in) Financing Activities 29,664 (60,318) Net Decrease in Cash and Cash Equivalents (7,761) (18,886) Cash and Cash Equivalents – Beginning 81,175 78,259 Cash and Cash Equivalents – Ending $ 73,414 $ 59,373 See notes to interim unaudited consolidated financial statements.
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Table of Contents 9 NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (Unaudited) Six Months Ended June 30, 2026 2025 (In thousands) Supplementary Cash Flows Information: Income taxes paid: Federal $ 5,000 $ 4,500 State and local¹ 2,901 2,617 Total income taxes paid $ 7,901 $ 7,117 Interest paid $ 22,892 $ 25,666 Supplementary Disclosure of Non-Cash Investing and Financing Activities: Recognition of right of use asset – operating $ — $ 912 Recognition of lease liability – operating $ — $ 912 Sale of real estate owned $ — $ 4,353 Dividends declared and not paid $ 3,417 $ 2,805 (1) For the years presented New York State, New York City, and Massachusetts make up 100% of the tax effect in this category. See notes to interim unaudited consolidated financial statements.
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Table of Contents 10 NORTHEAST COMMUNITY BANCORP, INC. Notes to Condensed Consolidated Financial Statements (Dollars in thousands, unless otherwise stated) (Unaudited) NORTHEAST COMMUNITY BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 — Summary of Significant Accounting Policies The following is a description of the Company’s business and significant accounting and reporting policies: Nature of Business: Northeast Community Bancorp, Inc. (the “Company”) is a Maryland corporation that was incorporated in May 2021 to be the successor to NorthEast Community Bancorp, Inc., a federally chartered corporation (the “Mid-Tier Holding Company”), upon completion of the second-step conversion of NorthEast Community Bank (the “Bank”) from the two-tier mutual holding company structure to the stock holding company structure. NorthEast Community Bancorp, MHC was the former mutual holding company for the Mid-Tier Holding Company prior to the completion of the second-step conversion. In conjunction with the second-step conversion, each of NorthEast Community Bancorp, MHC and the Mid-Tier Holding Company merged out of existence and now cease to exist. The Bank is a New York State-chartered savings bank and the Company’s primary activity is the ownership and operation of the Bank. The Bank is headquartered in White Plains, New York. The Bank was founded in 1934 and is a community oriented financial institution dedicated to serving the financial services needs of individuals and businesses within its market area. The Bank currently conducts business through its eleven branch offices located in the Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex and Norfolk Counties in Massachusetts and three loan production offices located in White Plains, New York, New City, New York, and Danvers, Massachusetts. The Bank’s principal business consists of originating primarily construction loans and, to a lesser extent, commercial and industrial loans and multifamily and mixed-use residential real estate loans and non- residential real estate loans. The Bank offers a variety of retail deposit products to the general public in the areas surrounding its main office and its branch offices, with interest rates that are competitive with those of similar products offered by other financial institutions operating in its market area. The Bank also utilizes borrowings, brokered deposits, military deposits, and listing deposit services as sources of funds. The Bank’s revenues are derived primarily from interest on loans and, to a lesser extent, interest on investment securities and mortgage-backed securities. The Bank also generates revenues from other income including deposit fees and service charges. New England Commercial Properties LLC (“NECP”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2007 to facilitate the purchase or lease of real property by the Bank. New England Commercial Properties, LLC currently does not own any property. NECB Financial Services Group, LLC (“NECB Financial”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in the third quarter of 2012 as a complement to Harbor West Wealth Management Group to sell life insurance and fixed rate annuities. NECB Financial is licensed in New York State. This subsidiary is currently inactive. 72 West Eckerson LLC (“72 West Eckerson”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2015 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch locations in Spring Valley, New York and Monroe, New York.
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Table of Contents 11 166 Route 59 Realty LLC (“166 Route 59 Realty”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the property for the Bank branch located in Airmont, New York. 3 Winterton Realty LLC, a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the property for the Bank branch located in Bloomingburg, New York. NECB Real Estate LLC (“NECB Real Estate”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2024 to facilitate the purchase or lease of real property by the Bank. NECB Real Estate owned one foreclosed property located in the Bronx, New York prior to the property’s disposition in June 2025. Principal of Consolidations: The accompanying unaudited consolidated financial statements include the accounts of the Company, the Bank, NECP, NECB Financial, 72 West Eckerson, 166 Route 59 Realty, 3 Winterton Realty LLC, and NECB Real Estate (collectively the “Company”) and have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant inter-company accounts and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company and its subsidiaries conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. The unaudited consolidated interim financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. In the opinion of the Company, all adjustments (consisting only of normal recurring accruals) that are necessary for a fair presentation of the operating results for the interim periods have been included. The results of operations for periods of less than a year are not necessarily indicative of results for the full year or any other period. Use of Estimates: The preparation of financial statements in conformity with GAAP 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 reported amounts of revenue and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term are used in connection with the determination of the allowance for credit losses. Loan Concentration Risk: The Company’s lending activity is concentrated in construction loans secured primarily by affordable housing apartment buildings located throughout all five submarkets in the Bronx, and by construction loans secured by condominium buildings and single-family developments in Rockland, Orange, and Sullivan Counties in high demand, high absorption areas. The Company’s lending exposures include outstanding loan balances, loans-in-process, and unfunded commitments. As of June 30, 2026 and December 31, 2025, the Company had lending exposures of $1.1 billion and $827.8 million in the Bronx, $552.3 million and $533.3 million in Orange County, $376.8 million and $364.2 million in Rockland County, and $129.7 million and $150.3 million in Sullivan County, respectively. The increase in total lending exposure reflects continued growth in construction lending activity. Compared to December 31, 2025, the Company’s lending exposure as of June 30, 2026 increased by $244.3 million or 29.5% in the Bronx, by $18.9 million or 3.5% in Orange County, and by $12.6 million or 3.5% in Rockland County.
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Table of Contents At June 30, 2026, the Company had a total of $96.6 million, or 6.9%, of construction loans located in Rockland, Orange, and Sullivan Counties related to office space or other commercial-use properties within these high demand, high absorption areas. Note 2 — Regulatory Capital The Company and the Bank are subject to regulatory capital requirements promulgated by the federal banking agencies. The Federal Reserve establishes capital requirements, including well capitalized standards, for the consolidated bank holding company, and the FDIC has similar requirements for the Company’s subsidiary bank. However, the Federal Reserve has provided a “small bank holding company” exception to its consolidated capital requirements for holding companies, and legislation and the related issuance of regulations by the Federal Reserve Board have established the current threshold for the exception at $3.0 billion in total consolidated assets. As a result, the Company will not be subject to the consolidated holding company capital requirement until such time as its consolidated assets exceed $3.0 billion. The Bank met all capital adequacy requirements to which it was subject as of June 30, 2026 and December 31, 2025. The following table presents information about the Bank’s capital levels at the dates presented: Regulatory Capital Requirements Minimum Capital For Classification as Actual Adequacy(1) Well-Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of June 30, 2026: Total capital (to risk-weighted assets) $352,068 15.31% $≥183,967 ≥8.00% $≥229,959 ≥10.00% Tier 1 capital (to risk-weighted assets) 346,047 15.05 ≥137,975 ≥6.00 ≥183,967 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 346,047 15.05 ≥103,482 ≥4.50 ≥149,473 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 346,047 17.32 ≥ 79,933 ≥4.00 ≥ 99,916 ≥ 5.00 As of December 31, 2025: Total capital (to risk-weighted assets) $339,973 15.62% $≥174,106 ≥8.00% $≥217,632 ≥10.00% Tier 1 capital (to risk-weighted assets) 334,266 15.36 ≥130,579 ≥6.00 ≥174,106 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 334,266 15.36 ≥ 97,934 ≥4.50 ≥141,461 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 334,266 16.39 ≥ 81,556 ≥4.00 ≥101,945 ≥ 5.00 (1) Ratios do not include the capital conservation buffer. Based on the most recent notification by the FDIC, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action. There have been no conditions or events that have occurred since notification that management believes have changed the Bank’s category. Note 3 — Earnings Per Share Basic earnings per share is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period less any unvested restricted shares. Unallocated common shares held by the Employee Stock Ownership Plan (“ESOP”) are not included in the weighted-average number of common shares outstanding for purposes of calculating basic net income per common share until they are committed to be released. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method.
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Table of Contents 13 The following table sets forth the computations of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In Thousands, except per share data) (In Thousands, except per share data) Net income (basic and diluted) $ 9,795 $ 11,170 $ 19,747 $ 21,737 Weighted average shares issued 13,799 14,023 13,826 14,022 Less: Weighted average unearned ESOP shares (500) (573) (507) (584) Less: Weighted average unvested restricted shares (164) (234) (164) (234) Basic weighted average shares outstanding 13,135 13,216 13,155 13,204 Add: Dilutive effect of restricted stock 91 108 83 105 Add: Dilutive effect of stock options 312 244 295 254 Diluted weighted average shares outstanding 13,538 13,568 13,533 13,563 Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents — Net income per share Basic $ 0.75 $ 0.85 $ 1.50 $ 1.65 Diluted $ 0.72 $ 0.82 $ 1.46 $ 1.60 Note 4 — Equity Securities The following table is the schedule of equity securities at June 30, 2026 and December 31, 2025. Our equity securities portfolio consists of our investment in a market-rate bond mutual fund that invests in high quality fixed income bonds, mainly government agency securities whose proceeds are designed to positively impact community development throughout the United States. The mutual fund focuses exclusively on providing affordable housing for low- and moderate-income borrowers and renters within our delineated lending areas, including those in majority minority census tracts. The high-quality fixed income bonds consist of 90% agency mortgage-backed securities and 10% state and municipal bonds. All agency mortgage- backed securities are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. June 30, December 31, 2026 2025 (In Thousands) Equity Securities, at Fair Value $27,327 $ 26,570 The following is a summary of unrealized gain or loss recognized in net income on equity securities during the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In Thousands) (In Thousands) Net unrealized (loss) gain recognized on equity securities during the period $ (122) $ 51 $ (243) $ 351Less: Net losses realized on the sale of equity securities duringthe period — — — — Unrealized net (loss) gain recognized on equity securities heldat the reporting date $ (122) $ 51 $ (243) $ 351
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Table of Contents 14 Note 5 — Securities Held-to-Maturity The following table summarizes the Company’s portfolio of securities held-to-maturity at June 30, 2026 and December 31, 2025. June 30, 2026 Gross Gross AllowanceAmortized Unrealized Unrealized Fair for Cost Gains Losses Value Credit Loss (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 302 $ 2 $ — $ 304 $ — Federal Home Loan Mortgage Corporation 640 — 69 571 — Federal National Mortgage Association 1,257 — 104 1,153 — Collateralized mortgage obligations – GSE 2,596 — 566 2,030 — Total mortgage-backed securities 4,795 2 739 4,058 — Municipal Bonds 13,091 — 1,980 11,111 135 $17,886 $ 2 $ 2,719 $ 15,169 $ 135 December 31, 2025 Gross Gross AllowanceAmortized Unrealized Unrealized Fair for Cost Gains Losses Value Credit Loss (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 327 $ 4 $ — $ 331 $ — Federal Home Loan Mortgage Corporation 684 — 65 619 — Federal National Mortgage Association 1,390 — 100 1,290 — Collateralized mortgage obligations – GSE 2,673 — 551 2,122 — Total mortgage-backed securities 5,074 4 716 4,362 — Municipal Bonds 13,367 — 2,202 11,165 126 $ 18,441 $ 4 $ 2,918 $ 15,527 $ 126 Contractual final maturities of mortgage-backed securities and municipal bonds were as follows at June 30, 2026: June 30, 2026 Amortized Fair Cost Value (In Thousands) Due within one year $ 1,417 $ 1,333 Due after one but within five years 3,462 3,116 Due after five but within ten years 4,169 3,618 Due after ten years 8,838 7,102 $17,886 $15,169 The maturities shown above are based upon contractual final maturity. Actual maturities will differ from contractual maturities due to scheduled monthly repayments and due to the underlying borrowers having the right to prepay their obligations.
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Table of Contents 15 The activity in the allowance for credit losses for debt securities held-to-maturity for the three and six months ended June 30, 2026 and 2025 was as follows: Municipal Bonds Balance – December 31, 2025 $ 126 Provision for credit loss - Balance – March 31, 2026 $ 126 Provision for credit loss 9 Balance – June 30, 2026 $ 135 Municipal Bonds Balance – December 31, 2024 $ 126 Provision for credit loss - Balance – March 31, 2025 $ 126 Provision for credit loss - Balance – June 30, 2025 $ 126 At June 30, 2026, eight mortgage-backed securities had unrealized losses due to interest rate volatility. Management concluded that the unrealized losses reflected above were temporary in nature since the unrealized losses were related primarily to market interest rate volatility, and were not related to the underlying credit quality of the issuers of the securities. Additionally, the Company has the ability and intent to hold the securities for the time necessary to recover the amortized cost. At December 31, 2025, there were eleven mortgage-backed securities that had unrealized losses due to interest rate volatility. Credit Quality Indicators The held to maturity securities portfolio consists of agency mortgage-backed securities and municipal bonds. All agency mortgage-backed securities are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The nine municipal bonds in the portfolio carry no lower than A ratings from the rating agencies at June 30, 2026 and have no realized losses since they were issued. At December 31, 2025, the ten municipal bonds in the portfolio carry no lower than A ratings from the rating agencies and have no realized losses since they were issued. The Company regularly monitors the municipal bonds sector of the market and reviews collectability including such factors as the financial condition of the issuers as well as credit ratings in effect as of the reporting period.
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Table of Contents 16 Note 6 — Loans Receivable and the Allowance for Credit Losses The composition of loans was as follows at June 30, 2026 and December 31, 2025: June 30, December 31, 2026 2025 (In Thousands) Residential real estate: One-to-four family $ 3,046 $ 3,114 Multi-family 301,628 306,508 Mixed-use 24,997 25,197 Total residential real estate 329,671 334,819 Non-residential real estate 36,247 38,463 Construction 1,403,562 1,336,329 Commercial and industrial 150,394 150,397 Consumer 34 58 Total Loans 1,919,908 1,860,066 Deferred loan (fees) costs, net (149) 268 Allowance for credit losses (4,752) (4,731) $ 1,915,007 $ 1,855,603 Loans serviced for the benefit of others, which are not included in the amounts shown above, totaled approximately $21.2 million and $53.3 million at June 30, 2026 and December 31, 2025, respectively. The value of mortgage servicing rights was not material at June 30, 2026 and December 31, 2025. The allowance for credit losses on loans represents management’s estimate of losses inherent in the loan portfolio as of the statement of financial condition date and is recorded as a reduction to loans. The allowance for credit losses is increased by the provision for credit losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. The allowance for credit losses on loans is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.
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Table of Contents 17 The activity in the allowance for credit loss by loan segment for the three and six months ended June 30, 2026 and 2025 was as follows: Non- CommercialResidential residential and Real Estate Real Estate Construction Industrial Consumer Total (In Thousands)Allowance for credit losses: Balance -March 31, 2026 $ 1,520 $ 264 $ 2,015 $ 756 $ 37 $ 4,592Charge-offs — — — (500) (20) (520)Recoveries — — — — — —Provision (reversal of) 27 (26) 173 489 17 680 Balance -June 30, 2026 $ 1,547 $ 238 $ 2,188 $ 745 $ 34 $ 4,752 Non- CommercialResidential residential and Real Estate Real Estate Construction Industrial Consumer Total (In Thousands)Allowance for credit losses: Balance -March 31, 2025 $ 2,224 $ 271 $ 1,716 $ 606 $ 310 $ 5,127Charge-offs — — — — (485) (485)Recoveries — — — — 82 82Provision (reversal of) (245) (42) 76 71 140 — Balance -June 30, 2025 $ 1,979 $ 229 $ 1,792 $ 677 $ 47 $ 4,724 Non- CommercialResidential residential andReal Estate Real Estate Construction Industrial Consumer Total (In Thousands)Allowance for credit losses: Balance - December 31, 2025 $ 1,646 $ 249 $ 2,035 $ 743 $ 58 $ 4,731Charge-offs — — — (500) (47) (547) Recoveries — — — — — —Provision (reversal of) (99) (11) 153 502 23 568 Balance -June 30, 2026 $ 1,547 $ 238 $ 2,188 $ 745 $ 34 $ 4,752 Non- CommercialResidential residential andReal Estate Real Estate Construction Industrial Consumer Total (In Thousands)Allowance for credit losses: Balance - December 31, 2024 $ 1,900 $ 308 $ 1,937 $ 520 $ 165 $ 4,830Charge-offs — — — — (602) (602)Recoveries — 350 — — 84 434 Provision (reversal of) 79 (429) (145) 157 400 62 Balance - June 30, 2025 $ 1,979 $ 229 $ 1,792 $ 677 $ 47 $ 4,724 During the three months ended June 30, 2026, the provision expense recorded for residential real estate and construction loans was primarily attributed to increased loan balances. The reversal of the provision recorded for non-residential real estate loans was primarily attributed to increased loan balances. The provision expense recorded for commercial and industrial loans was primarily attributed to a $500,000 loan charge off. The provision expense recorded for consumer loans was primarily attributed to a net charge off $20,000 in checking account overdrafts during the three months ended June 30, 2026.
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Table of Contents 18 During the three months ended June 30, 2025, the reversal of the provision recorded for residential real estate loans and non-residential real estate loans was primarily attributed to improving economic and housing conditions in the Bank’s lending submarkets. The provision expense recorded for commercial and industrial loans was attributed to slightly increased credit risk. The provision expense recorded for construction loans was primarily attributed to increased loan balances, offset by improving economic and housing conditions in the Bank’s lending submarkets. The provision expense recorded for consumer loans was primarily attributed to a net charge off $403,000 in checking account overdrafts during the three months ended June 30, 2025. During the six months ended June 30, 2026, the provision expense recorded for construction loans was primarily attributed to increased loan balances. The reversal of the provision recorded for residential real estate loans and non-residential real estate loans was primarily attributed to slightly decreased loan balances. The provision expense recorded for commercial and industrial loans was primarily attributed to a $500,000 loan charge off. The provision expense recorded for consumer loans was primarily attributed to a net charge off $47,000 in checking account overdrafts during the six months ended June 30, 2026. During the six months ended June 30, 2025, the provision expense recorded for residential real estate loans was primarily attributed to increased loan balances, offset by improving economic and housing conditions in the Bank’s local markets. The provision expense recorded for commercial and industrial loans was attributed to increased loan balances and slightly increased credit risk. The reversal of the provision recorded for non-residential real estate loans was primarily attributed to a $350,000 recovery from a loan charged off in 2021, and slightly decreased loan balances. The reversal of the provision recorded for construction loans was primarily attributed to improving economic and housing conditions in the Bank’s local markets, offset by decreased loan balances. The provision expense recorded for consumer loans was primarily attributed to a net charge off $518,000 in checking account overdrafts during the six months ended June 30, 2025. The Company had no individually evaluated loan and no non-accrual loans at June 30, 2026 and December 31, 2025, respectively.
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Table of Contents 19 The following tables provide information about delinquencies in our loan portfolio at the dates indicated. Age Analysis of Past Due Loans as of June 30, 2026: Recorded Investment >30 – 59 Days 60 – 89 Days Greater Than Total Past Total Loans 90 Days and Past Due Past Due 90 Days Due Current Receivable Accruing (In Thousands) Residential real estate: One- to four- family $ — $ — $ — $ — $ 3,046 $ 3,046 $ — Multi-family — — — — 301,628 301,628 — Mixed-use — — — — 24,997 24,997 — Non-residential real estate — — — — 36,247 36,247 — Construction loans — — — — 1,403,562 1,403,562 — Commercial and industrial loans — — — — 150,394 150,394 — Consumer — — — — 34 34 — $ — $ — $ — $ — $1,919,908 $1,919,908 $ — Age Analysis of Past Due Loans as of December 31, 2025: Recorded Investment30 – 59 Days 60 – 89 Days Greater Than Total Past Total Loans > 90 Days and Past Due Past Due 90 Days Due Current Receivable Accruing (In Thousands) Residential real estate: One- to four- family $ — $ — $ — $ — $ 3,114 $ 3,114 $ — Multi-family — — — — 306,508 306,508 — Mixed-use — — — — 25,197 25,197 — Non-residential real estate — — — — 38,463 38,463 — Construction loans — — — — 1,336,329 1,336,329 — Commercial and industrial loans — — — — 150,397 150,397 — Consumer — — — — 58 58 — $ — $ — $ — $ — $1,860,066 $1,860,066 $ —
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Table of Contents 20 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings: Pass – Loans that are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Special Mention – Loans which do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but have some credit deficiencies or other potential weaknesses. Substandard – Loans which are inadequately protected by the paying capacity and net worth of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful – Loans which have all of the weaknesses inherent in loans classified as Substandard, with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values.
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Table of Contents 21 The following table presents the risk category of loans at June 30, 2026 by loan segment and vintage year: Line of Credit Line of Credit Term Loans Amortized Costs Basis by Origination Year Loans Loans Amortized Converted June 30, 2026 2026 2025 2024 2023 2022 Prior Cost Basis to Term Total Residential real estate Risk Rating Pass $ - $ 140,791 $ 11,931 $ 57,956 $ 63,928 $ 55,065 $ - $ - $ 329,671 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ - $ 140,791 $ 11,931 $ 57,956 $ 63,928 $ 55,065 $ - $ - $ 329,671 Residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Non-residential real estate Risk Rating Pass $ - $ 10,918 $ 13,501 $ 1,511 $ 231 $ 10,086 $ - $ - $ 36,247 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ - $ 10,918 $ 13,501 $ 1,511 $ 231 $ 10,086 $ - $ - $ 36,247 Non-residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Construction Risk Rating Pass $ 320,854 $ 513,778 $ 222,068 $ 181,705 $ 96,758 $ 54,526 $ - $ - $1,389,689 Special Mention - - - - - 13,873 - - 13,873 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 320,854 $ 513,778 $ 222,068 $ 181,705 $ 96,758 $ 68,399 $ - $ - $1,403,562 Construction Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial and industrial Risk Rating Pass $ 92 $ 6,354 $ 3,907 $ 1,236 $ 4,260 $ 1,365 $ 126,785 $ 2,824 $ 146,823 Special Mention - - 1,571 2,000 - - - - 3,571 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 92 $ 6,354 $ 5,478 $ 3,236 $ 4,260 $ 1,365 $ 126,785 $ 2,824 $ 150,394 Commercial and industrial Current period gross charge-offs $ - $ - $ - $ 500 $ - $ - $ - $ - $ 500 Consumer Risk Rating Pass $ 34 $ - $ - $ - $ - $ - $ - $ - $ 34 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 34 $ - $ - $ - $ - $ - $ - $ - $ 34 Consumer Current period gross charge-offs $ 47 $ - $ - $ - $ - $ - $ - $ - $ 47 Total Risk Rating Pass $ 320,980 $ 671,841 $ 251,407 $ 242,408 $ 165,177 $ 121,042 $ 126,785 $ 2,824 $1,902,464 Special Mention - - 1,571 2,000 - 13,873 - - 17,444 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 320,980 $ 671,841 $ 252,978 $ 244,408 $ 165,177 $ 134,915 $ 126,785 $ 2,824 $1,919,908 Total Current period gross charge-offs $ 47 $ - $ - $ 500 $ - $ - $ - $ - $ 547
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Table of Contents 22 The following table presents the risk category of loans at December 31, 2025 by loan segment and vintage year: Line of Credit Line of Credit Term Loans Amortized Costs Basis by Origination Year Loans Loans Amortized Converted December 31, 2025 2025 2024 2023 2022 2021 Prior Cost Basis to Term Total Residential real estate Risk Rating Pass $ 120,070 $ 11,768 $ 75,364 $ 64,588 $ 21,735 $ 41,068 $ - $ - $ 334,593 Special Mention - 226 - - - - - - 226 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 120,070 $ 11,994 $ 75,364 $ 64,588 $ 21,735 $ 41,068 $ - $ - $ 334,819 Residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Non-residential real estate Risk Rating Pass $ 11,013 $ 13,632 $ 1,531 $ 235 $ 1,606 $ 10,446 $ - $ - $ 38,463 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 11,013 $ 13,632 $ 1,531 $ 235 $ 1,606 $ 10,446 $ - $ - $ 38,463 Non-residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Construction Risk Rating Pass $ 445,820 $ 380,754 $ 233,309 $ 158,283 $ 75,970 $ 42,193 $ - $ - $1,336,329 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 445,820 $ 380,754 $ 233,309 $ 158,283 $ 75,970 $ 42,193 $ - $ - $1,336,329 Construction Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial and industrial Risk Rating Pass $ 6,431 $ 5,959 $ 3,590 $ 4,843 $ 18 $ 1,501 $ 127,705 $ 350 $ 150,397 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 6,431 $ 5,959 $ 3,590 $ 4,843 $ 18 $ 1,501 $ 127,705 $ 350 $ 150,397 Commercial and industrial Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer Risk Rating Pass $ 58 $ - $ - $ - $ - $ $ - $ - $ 58 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 58 $ - $ - $ - $ - $ - $ - $ - $ 58 Consumer Current period gross charge-offs $ 702 $ - $ - $ - $ - $ - $ - $ - $ 702 Total Risk Rating Pass $ 583,392 $ 412,113 $ 313,794 $ 227,949 $ 99,329 $ 95,208 $ 127,705 $ 350 $1,859,840 Special Mention - 226 - - - - - - 226 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 583,392 $ 412,339 $ 313,794 $ 227,949 $ 99,329 $ 95,208 $ 127,705 $ 350 $1,860,066 Total Current period gross charge-offs $ 702 $ - $ - $ - $ - $ - $ - $ - $ 702
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Table of Contents 23 Modifications to Borrowers Experiencing Financial Difficulty: Occasionally, the Company modifies loans to borrowers in financial distress by providing a term extension; an other-than-insignificant payment delay; or an interest rate reduction. In some cases, the Company provides multiple types of concessions on a loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as an interest rate reduction, may be granted. During the three and six months ended June 30, 2026, three loans totaling $17.4 million were modified to one borrower experiencing financial difficulty. There were no loans modified to borrowers experiencing financial difficulty during the year ended December 31, 2025. The following table describes the financial effect of the modification made to the borrower experiencing financial difficulty: Interest Rate Reduction Weighted-average contractual interest rate From To Three Months Ended June 30, 2026Commercial and industrial 8.75% 5.63% Construction 8.75% 5.63% Six Months Ended June 30, 2026Commercial and industrial 8.75% 5.63% Construction 8.75% 5.63% The performance of the loans made to the borrower experiencing financial difficulty in which modifications were made is closely monitored to determine the effectiveness of modification efforts. At June 30, 2026, the three loans were current. Allowance for Credit Losses on Off-Balance Sheet Commitments: The following table presents the activity in the allowance for credit losses related to off-balance sheet commitments, that is included in accounts payable and accrued expenses on the consolidated statement of financial condition, for the three and six months ended June 30, 2026 and 2025: During the three months ended June 30, 2026, the provision expense recorded was primarily due to increased balances in unfunded loan commitments. Allowance for Credit Loss Balance – December 31, 2025 $ 879 Provision for credit loss 112 Balance – March 31, 2026 $ 991 Provision for credit loss 171 Balance – June 30, 2026 $ 1,162 Allowance for Credit Loss Balance – December 31, 2024 $ 704 Provision for credit loss 175 Balance – March 31, 2025 $ 879 Provision for credit loss - Balance – June 30, 2025 $ 879
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Table of Contents 24 Note 7 — Borrowings Our borrowings are primarily from the Discount Window at the Federal Reserve Bank of New York (“FRBNY”). On August 30, 2023, the FRBNY approved the Company’s eligibility to pledge loans under the Borrower-in-Custody program of the FRBNY thereby allowing the Company to borrow from the Discount Window at the FRBNY. At June 30, 2026, borrowings from the FRBNY totaled $190.0 million, bearing an interest rate of 3.75% and maturing in the next three months. At December 31, 2025, borrowings from the FRBNY totaled $70.0 million, bearing an interest rate of 3.75%. At June 30, 2026, the Company had the ability to borrow $633.0 million from the FRBNY, and $8.0 million from Atlantic Community Bankers Bank (“ACBB”). Note 8 — Benefits Plans Outside Director Retirement Plan (“DRP”) The DRP is an unfunded non-contributory defined benefit pension plan covering all non-employee directors meeting eligibility requirements as specified in the plan document. The following table sets forth information regarding the components of net pension periodic expense measured for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars In Thousands) (Dollars In Thousands) Net periodic pension expense: Service cost $ 28 $ 26 $ 56 $ 47 Interest cost 22 24 45 43 Actuarial gain recognized (6) (5) (15) (15) Total net periodic pension expense included in other non-interest expenses $ 44 $ 45 $ 86 $ 75 Unrecognized net gain of $29,000 and $19,000 for the three months, and $50,000 and $9,000 for the six months ended June 30, 2026 and 2025, respectively, were included in accumulated other comprehensive income. Supplemental Executive Retirement Plan (“SERP”) The SERP is a non-contributory defined benefit plan that covers certain officers of the Company. Under the SERP, each of these individuals will be entitled to receive upon retirement an annual benefit paid in monthly installments equal to 50% of his average base salary in the three-year period preceding retirement. Each individual may also retire early and receive a reduced benefit upon the attainment of certain age and years of service combination. Additional terms related to death while employed, death after retirement, disability before retirement and termination of employment are fully described within the plan document. The benefit payment term is the greater of 15 years or the executive’s remaining life. At June 30, 2026 and December 31, 2025, the deferred compensation liability related to the SERP was $5.6 million and $5.3 million, respectively. Expenses of $142,000 and $147,000 for the three months, and $295,000 and $286,000 for the six months ended June 30, 2026 and 2025, respectively, were recorded for this plan and are reflected in the Consolidated Statements of Income under Salaries and Employee Benefits. Stock-Based Deferral Plan In June 2021, the Company established a stock-based deferral plan for eligible key executives and members of the Board of Directors of the Company to elect to defer compensation received from the Company for their services and make deemed investments of that deferred compensation in shares of the Company’s common stock. At June 30, 2026, the Company did not have any obligations under the plan.
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Table of Contents 25 401(k) Plan The Company maintains a 401(k) plan for all eligible employees. Participants are permitted to contribute from 1% to 15% or 60% of their annual compensation up to the maximum permitted under the Internal Revenue Code. The Company provided no matching contributions during the three and six months ended June 30, 2026 and 2025. Employee Stock Ownership Plan (“ESOP”) In conjunction with the Mid-Tier Holding Company’s public stock offering in 2006, the Bank established an ESOP for all eligible employees (substantially all full-time employees). The ESOP borrowed $5,184,200 from the Mid-Tier Holding Company and used those funds to acquire 518,420 shares of Mid-Tier Holding Company common stock at $10.00 per share. The loan from the Mid-Tier Holding Company, which has been assumed by the Company, carries an interest rate of 8.25% and is repayable in twenty annual installments. This loan was paid off in full at December 31, 2025. In conjunction with the Company’s second-step conversion offering, on July 12, 2021, the ESOP borrowed $7,827,260 from the Company and used those funds to acquire 782,726 shares of Company common stock at $10.00 per share. The loan from the Company carries an interest rate equal to 3.25% and is repayable in fifteen annual installments through 2035. Each year, the Bank makes discretionary contributions to the ESOP equal to the principal and interest payment required on the loans from the Company. The ESOP may further pay down the principal balance of the loans by using dividends paid, if any, on the shares of Company common stock it owns. The first ESOP loan was paid off in full at December 31, 2025. The balance remaining on the second ESOP loan was $5,529,000 at both June 30, 2026 and December 31, 2025. Shares purchased for the ESOP with the loan proceeds serve as collateral for the loan and are held in a suspense account for future allocation among ESOP participants. As the loan principal is repaid, shares will be released from the suspense account and become eligible for allocation, subject to the allocation provisions included in the ESOP governing document. ESOP shares initially pledged as collateral were recorded as unearned ESOP shares in the stockholders’ equity section of the Consolidated Statement of Financial Condition. Thereafter, on a monthly basis over the terms of the ESOP loans, approximately 2,894 shares for the ESOP loan made in 2006 and approximately 4,348 shares for the ESOP loan made in 2021 are committed to be released, respectively. Compensation expense is recorded in an amount equal to the shares committed to be released multiplied by the average closing price of the Company’s stock during that month. ESOP expense totaled approximately $324,000 and $491,000 for the three months, and $632,000 and $1,011,000 for the six months ended June 30, 2026 and 2025, respectively. Dividends on unallocated shares, which totaled approximately $130,000 and $122,000 for the three months, and $234,000 and $243,000 for the six months ended June 30, 2026 and 2025, respectively, are recorded as a reduction of the ESOP loan. Dividends on allocated shares, which totaled approximately $239,000 and $174,000 for the three months, and $430,000 and $347,000 for the six months ended June 30, 2026 and 2025, respectively, are charged to retained earnings. ESOP shares are summarized as follows: June 30, December 31, 2026 2025 Allocated shares 955,590 868,678 Shares committed to be released 26,094 86,912 Unearned shares 495,725 521,819 Total ESOP Shares 1,477,409 1,477,409 Less allocated shares distributed to former or retired employees (218,352) (188,412) Total ESOP Shares Held by Trustee 1,259,057 1,288,997 Fair value of unearned shares $13,751,412 $11,798,328
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Table of Contents 26 Note 9 — Fair Value Disclosures The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company’s marketable equity securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company has to record at fair value other assets and liabilities on a non-recurring basis, such as securities held to maturity, individually evaluated loans and other real estate owned. U.S. GAAP has established a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). The level of the asset or liability within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s assets that are carried at fair value on a recurring basis and the level that was used to determine their fair value at June 30, 2026 and December 31, 2025: Quoted Prices in Significant Other Significant Total CarriedActive Markets for Observable Unobservable at FairIdentical Assets Inputs Inputs Value on a(Level 1) (Level 2) (Level 3) Recurring Basis June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, Description 2026 2025 2026 2025 2026 2025 2026 2025 Assets: Marketable equity securities: Mutual funds $27,327 $ 26,570 $ — $ — $ — $ — $27,327 $ 26,570 Total assets $27,327 $ 26,570 $ — $ — $ — $ — $27,327 $ 26,570 There were no transfers between Level 1 and 2 during the three and six months ended June 30, 2026 or the year ended December 31, 2025. The Company did not have any liabilities that were carried at fair value on a recurring basis at June 30, 2026 and December 31, 2025. The Company did not have any assets and liabilities that were carried at fair value on a non-recurring basis at June 30, 2026 and December 31, 2025. The methods and assumptions used to estimate fair value at June 30, 2026 and December 31, 2025 are as follows: Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period end-dates and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end.
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Table of Contents 27 Fair values for marketable equity securities are determined by quoted market prices on nationally recognized and foreign securities exchanges (Level 1). Fair values for equity securities and securities held to maturity are determined utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other things. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The carrying amounts and estimated fair value of our financial instruments are as follows: Fair Value atJune 30, 2026 Quoted Prices inActive SignificantMarkets for Other SignificantIdentical Observable UnobservableCarrying Assets Inputs Inputs(In thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Cash and cash equivalents $ 73,414 $ 73,414 $ 73,414 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 27,327 27,327 27,327 — — Securities held to maturity 17,751 15,169 — 15,169 — Loans receivable, net 1,915,007 1,893,469 — — 1,893,469 Investments in restricted stock 543 543 — 543 — Accrued interest receivable 12,189 12,189 — 12,189 — Financial Liabilities Deposits 1,536,543 1,536,677 — 1,536,677 — Accrued interest payable 621 621 — 621 — Borrowings 190,000 190,235 190,235 — — Fair Value atDecember 31, 2025 Quoted Prices inActive SignificantMarkets for Other SignificantIdentical Observable UnobservableCarrying Assets Inputs Inputs (In thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Cash and cash equivalents $ 81,175 $ 81,175 $ 81,175 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 26,570 26,570 26,570 — — Securities held to maturity 18,315 15,527 — 15,527 — Loans receivable 1,855,603 1,853,900 — — 1,853,900 Investments in restricted stock 410 410 — 410 — Accrued interest receivable 12,228 12,228 — 12,228 — Financial Liabilities Deposits 1,616,901 1,619,565 — 1,619,565 — Accrued interest payable 513 513 — 513 — Borrowings 70,000 70,000 70,000 — —
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Table of Contents 28 Note 10 — Revenue Recognition The majority of the Company’s revenues come from interest income and other sources, including loans and securities that are outside the scope of ASC 606, Revenue from Contracts with Customers. The Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include service charges on deposits, electronic banking fees and charges income, and investment advisory fees. A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as referral fees based on month end reports. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2026 and December 31, 2025, the Company did not have any significant contract balances. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the three and six months ended June 30, 2026 and 2025. Sources of revenue outside the scope of ASC 606 are noted as such: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In Thousands) (In Thousands) Non-interest income: Deposit-related fees and charges $ 18 $ 17 $ 35 $ 35 Loan-related fees and charges(1) 194 276 507 584 Electronic banking fees and charges 337 318 676 732 Income from bank owned life insurance(1) 185 170 364 336 Unrealized (loss) gain on equity securities(1) (122) 51 (243) 351 Miscellaneous(1) 30 26 99 55 Total non-interest income $ 642 $ 858 $ 1,438 $ 2,093 (1) Not within the scope of ASC 606. A description of the Company’s revenue streams accounted for under ASC 606 is as follows: Service Charges on Deposit Accounts The Company earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are generally earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Service charges on deposits are withdrawn from the customer’s account balance. Electronic Banking Fee Income The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsourced technology solution.
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Table of Contents 29 Note 11 — Other Non-Interest Expenses The following is an analysis of other non-interest expenses: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In Thousands) (In Thousands) Other $ 590 $ 259 $ 910 $ 559 Regulatory insurance premium and assessments 691 768 1,429 1,618 Dues and subscriptions 205 211 409 427 Service contracts 474 445 928 868 Consulting expense 162 127 341 318 Telephone 127 150 254 293 Directors' compensation 220 219 475 456 Audit and accounting 115 147 250 290 Insurance 123 94 234 200 Director, officer, and employee expense 88 76 167 135 Legal fees 181 165 307 263 Office supplies and stationary 42 48 77 105 Recruiting expense 8 25 16 57 $ 3,026 $ 2,734 $ 5,797 $ 5,589 Note 12 — Stock Compensation Plans At a special shareholders meeting held on September 29, 2022, the Company’s shareholders approved the Company’s 2022 Equity Incentive Plan whereby 1,369,771 shares of the Company’s common stock were reserved from authorized but unissued shares for purposes of grants of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, performance shares and performance units to selected employees and non-employee directors of the Company. On May 21, 2026, the shareholders of the Company approved the Company’s 2026 Equity Incentive Plan whereby 204,335 shares of the Company’s common stock were reserved and available for issuance under the Plan. The product of the number of shares granted and the grant date market price of the Company’s common stock determine the fair value of restricted stock under the Company’s Equity Incentive Plans. Management recognizes compensation expense for the fair value of restricted stock on a straight-line basis over the requisite service period for the entire award. As of June 30, 2026 and December 31, 2025, there were 204,335 and 19,335 aggregate shares available for future awards under the plans, respectively. A summary of the Company’s restricted stock activity and related information for the three and six months ended June 30, 2026 follows: 2026 Weighted Average Shares Market Price Outstanding at December 31, 2025 163,514 $ 14.92 Granted — — Forfeited — — Vested — — Outstanding at March 31, 2026 163,514 $ 14.92 Granted — — Forfeited — — Vested — — Outstanding at June 30, 2026 163,514 $ 14.92
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Table of Contents 30 Compensation expense related to restricted stock was $308,000 and $293,000 for the three months, and $616,000 and $586,000 for the six months ended June 30, 2026 and 2025, respectively. At June 30, 2026, the total compensation cost related to non-vested restricted stock awards that has not yet been recognized was $1.6 million which cost is expected to be recognized over the next two years. A summary of the Company’s stock option activity and related information for the three and six months ended June 30, 2026 follows: 2026 Weighted Average Options Exercise Price Outstanding at December 31, 2025 878,416 $ 14.42 Granted — — Forfeited — — Exercised 15,240 12.95 Outstanding at March 31, 2026 863,176 $ 14.44 Granted — — Forfeited — — Exercised — — Outstanding at June 30, 2026 863,176 $ 14.44 Exercisable at June 30, 2026 455,617 13.77 Compensation cost related to stock options is recognized based on the fair value of the stock options at the grant date on a straight-line basis over the vesting period. Compensation expense related to stock options was $213,000 and $186,000 for the three months, and $452,000 and $371,000 for the six months ended June 30, 2026 and 2025, respectively. At June 30, 2026, unrecognized compensation cost related to stock option awards was $1.3 million which is expected to be recognized over the next two years. Note 13 — Business Segments While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed, and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Substantially most of the Company’s operations occur through the Bank and involve the delivery of loan and deposit products to customers. The Company’s chief operating decision maker is the Executive Committee that includes the Chief Executive Officer, Chief Operating Officer and Chief Financial Officer. The Executive Committee assesses performance of the Company on a consolidated basis and decides how to allocate resources based on net income that is also reported as net income on the Consolidated Statement of Income. The Executive Committee uses net income, which is the measure of segment profit and loss, to evaluate income generated from segment assets (return on assets) and other measures, such as net interest margin, return on average assets, and return on common equity, in deciding how to reinvest profits, such as originating loans, investing in investment securities, or repurchasing shares of the Company’s common stock. Net income is used to monitor budget versus actual results. The Executive Committee also uses net income and other measures in comparing the Company to its peer banks. The comparison of the Company’s net income and other measures to its peer banks, along with the comparison of budgeted versus actual results are used in assessing the Company’s performance and in establishing management compensation. Loans, investments, and deposits provide the revenues in the banking operations. Interest expense and payroll provide the significant expenses in the banking operations. All operations are domestic.
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Table of Contents 31 The following table presents the Company’s reported segment revenues, profit or loss and significant segment expenses for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In Thousand) (In Thousand) Total interest income $ 36,060 $ 38,039 $ 72,029 $ 76,246 Total interest expense 11,410 12,965 23,245 26,908 Net interest income 24,650 25,074 48,784 49,338 Provision for credit loss 860 — 860 237 Net interest income after provision for credit losses23,790 25,074 47,924 49,101 Total non-interest income 642 858 1,438 2,093 Non-interest expense: Salaries and employee benefits 5,817 5,650 11,989 11,583 Occupancy expense 787 743 1,661 1,489 Equipment 221 253 444 470 Outside data processing 725 758 1,521 1,494 Advertising 43 123 86 225 Real estate owned expense — 247 — 277 Other 3,026 2,734 5,797 5,589 Total Non-Interest Expenses 10,619 10,508 21,498 21,127 Income before income tax expense 13,813 15,424 27,864 30,067 Income tax expense 4,018 4,254 8,117 8,330 Segment net income $ 9,795 $ 11,170 $ 19,747 $ 21,737 Reconciliation of profit or loss Adjustments and reconciling items — — — — Consolidated net income $ 9,795 $ 11,170 $ 19,747 $ 21,737 Earnings per common share - Basis $ 0.75 $ 0.85 $ 1.50 $ 1.65 Earnings per common share - Diluted 0.72 0.82 1.46 1.60 The measure of segment assets is reported as total assets on the Consolidated Statement of Condition. The following table presents the Company’s reported segment assets as of June 30, 2026 and December 31, 2025: June 30, December 31,2026 2025 (In Thousand) Segment assets Adjustments and reconciling items $ — $ — Consolidated total assets 2,115,183 2,063,508
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Table of Contents 32 Note 14 — Recent Accounting Pronouncements In October 2023, the FASB issued ASU 2023-06, Disclosure Improvement: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, which incorporates several SEC disclosure requirements into US GAAP and adds interim and annual disclosure requirements to a variety of topics in the Accounting Standards Codification, including those focusing on accounting changes, earnings per share, debt and repurchase agreements. For entities subject to the SEC disclosure requirements and those “required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer,” the US GAAP requirements will be effective when the removal of the related SEC rule is effective. Early adoption is not permitted for these entities. For all other entities, the effective date will be two years later, and early adoption is permitted. That is, financial statements issued after the effective date of each amendment are required to include on a prospective basis the related disclosure incorporated into US GAAP by this ASU. However, if the SEC does not act to remove its related requirements by June 30, 2027, any related FASB amendments will be removed from the Codification and will not be effective for any entities. This Update is not expected to have a significant impact on the Company’s financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures. This ASU requires disclosure in the notes to financial statements of specified information about certain costs and expenses. Specific disclosures are required for (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil and gas producing activities. The amendments in this Update do not change or remove current expense disclosure requirements. However, the amendments affect where this information appears in the notes to financial statements because entities are required to include certain current disclosures in the same tabular format disclosure as the other disaggregation requirements in the amendments. The amendments in ASU 2024-03 apply only to public business entities and are effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. This Update is not expected to have a significant impact on the Company’s financial statements. In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income —Expense Disaggregation Disclosures (Subtopic 220-40), which revises the effective date of ASU 2024-03 (on disclosures about disaggregation of income statement expenses) “to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.” Entities within the ASU’s scope are permitted to early adopt the ASU. This Update is not expected to have a significant impact on the Company’s financial statements. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the accounting for internal-use software that is developed using an incremental and iterative method (e.g., agile method). The guidance removes all references to project stages in ASC 350-40 and clarifies the threshold entities apply to begin capitalizing costs. The guidance specifies that the property, plant, and equipment disclosure requirements under ASC 360-10 apply to capitalized software costs accounted for under ASC 350-40, regardless of how those costs are presented in the financial statements. The guidance, which applies to all entities, is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years. Entities may apply the guidance using a prospective, retrospective, or modified transition approach. Early adoption is permitted. This Update is not expected to have a significant impact on the Company’s financial statements.
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Table of Contents 33 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Forward-Looking Statements Statements contained in this report that are not historical facts may constitute forward-looking statements (within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended), which involve significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by the use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “plan,” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and actual results may differ from those predicted. The Company undertakes no obligation to update these forward-looking statements in the future. The Company cautions readers of this report that a number of important factors could cause the Company’s actual results to differ materially from those expressed in forward-looking statements. Factors that could cause actual results to differ from those predicted and could affect the future prospects of the Company include, but are not limited to: (i) General economic conditions, including higher inflation or recessionary conditions, either nationally or in our market area, that are worse than expected; (ii) Changes in the interest rate environment that reduce our interest margins, reduce the fair value of financial instruments or reduce the demand for our loan products; (iii) Increased competitive pressures among financial services companies; (iv) Changes in consumer spending, borrowing and savings habits; (v) Changes in the quality and composition of our loan or investment portfolios and the adequacy of credit loss allowances; (vi) Changes in real estate market values in our market area; (vii) Decreased demand for loan products, deposit flows, competition, or decreased demand for financial services in our market area; (viii) Major catastrophes such as earthquakes, floods or other natural or human disasters and pandemics or infectious disease outbreaks, the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on us and our customers and other constituencies; (ix) Legislative, regulatory or policy changes, including those relating, but not limited, to banking, securities, rent regulation and housing (including recent regulatory action in New York City to freeze rents on certain rent-regulated properties), 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 (x) Changes in the monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; (xi) The impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts and the impact of changing political conditions or federal government shutdowns; (xii) Technological changes that may be more difficult or expensive than expected; (xiii) Success or consummation of new business initiatives may be more difficult or expensive than expected; (xiv) The inability to successfully integrate acquired businesses and financial institutions into our business operations; (xv) Adverse changes in the securities markets; (xvi) The impact of failures or disruptions in or breaches of the Company’s operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns; (xvii) The inability of third party service providers to perform; and (xviii) Changes in accounting policies and practices, as may be adopted by bank regulatory agencies or the Financial Accounting Standards Board.
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Table of Contents 34 Critical Accounting Policies We consider accounting policies involving significant judgements and assumptions by management that have, or could have, a material impact on the carrying value of certain assets or on income to be critical accounting policies. We consider these accounting policies to be our crucial accounting policies. The judgements and assumptions we use are based on historical experience and other factors, which we believe to be reasonable under the circumstances. Actual results could differ from these judgements and estimates under different conditions, resulting in a change that could have a material impact on the carrying values of our assets and liabilities and our results of operations. There have been no changes in the critical accounting policies since the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Balance Sheet Analysis General Total assets increased $51.7 million, or 2.5%, to $2.1 billion at June 30, 2026, from $2.1 billion at December 31, 2025. The increase in assets was primarily due to an increase in net loans of $59.4 million, partially offset by a decrease in cash and cash equivalents of $7.8 million. Cash and cash equivalents decreased $7.8 million, or 9.6%, to $73.4 million at June 30, 2026 from $81.2 million at December 31, 2025. The decrease in cash and cash equivalents partially funded the increase of $59.4 million in net loans. Equity securities increased $757,000, or 2.8%, to $27.3 million at June 30, 2026 from $26.6 million at December 31, 2025. The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the six months ended June 30, 2026, partially offset by market depreciation of $243,000 due to market interest rate volatility during the six months ended June 30, 2026. Securities held-to-maturity decreased $564,000, or 3.1%, to $17.8 million at June 30, 2026 from $18.3 million at December 31, 2025 due to pay-downs of various investment securities and an increase of $9,000 to the allowance for credit losses for held-to-maturity securities, partially offset by the purchase of $470,000 in municipal securities. Loans, net of the allowance for credit losses, increased $59.4 million, or 3.2%, to $1.9 billion at June 30, 2026 from $1.9 billion at December 31, 2025. The increase in loans consisted of an increase of $67.2 million in construction loans, partially offset by decreases of $4.9 million in multi-family loans, $2.2 million in non- residential loans, $200,000 in mixed-use loans, $69,000 in one-to-four family loans, $23,000 in consumer loans, and $3,000 in commercial and industrial loans. During the six months ended June 30, 2026, we originated loans totaling $653.2 million, which includes commitments and funded loans, consisting primarily of $606.7 million in construction loans, $25.1 million in commercial and industrial loans, $20.8 million in multi-family loans, and $675,000 in mixed-use loans. The $606.7 million in construction loans had $262.7 million, or 43.3%, disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans. These disbursements were offset by normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions. The commercial and industrial loans had $19.0 million, or 75.7%, disbursed at loan closing as of June 30, 2026. Multi-family loan originations decreased by $74.6 million, or 78.2%, to $20.8 million for the six months ended June 30, 2026 from $95.4 million for the six months ended June 30, 2025 due to changes related to rent and housing regulations in New York City and the uncertainty regarding interest rates. The allowance for credit losses related to loans was $4.6 million at June 30, 2026 and December 31, 2025. The allowance for credit losses related to loans had a provision for credit losses totaling $568,000 and charge-offs totaling $547,000. The provision for credit losses totaling $568,000 was due to an increase in the loan portfolio and a slight increase in the remaining terms of the loan portfolio.
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Table of Contents 35 The allowance for credit losses for off-balance sheet commitments increased $284,000, or 32.3%, to $1.2 million at June 30, 2026 from $879,000 at December 31, 2025 due primarily to an increase of $204.2 million, or 30.0%, in off-balance sheet commitments from December 31, 2025 to June 30, 2026. The allowance for credit losses for held-to-maturity securities increased $9,000, or 7.1%, to $135,000 at June 30, 2026 from $126,000 at December 31, 2025 due to an increase in our municipal bond portfolio. Premises and equipment decreased $356,000, or 1.4%, to $25.0 million at June 30, 2026 from $25.4 million at December 31, 2025 primarily due to the amortization of fixed assets. Federal Home Loan Bank stock increased by $133,000, or 32.4%, to $543,000 at June 30, 2026 from $410,000 at December 31, 2025 primarily due to an increase in our mortgage-related assets. Bank owned life insurance (“BOLI”) increased $364,000, or 1.4%, to $26.8 million at June 30, 2026 from $26.4 million at December 31, 2025 due to increases in the BOLI cash value. Accrued interest receivable decreased $39,000, or 0.3%, to $12.2 million at June 30, 2026 from $12.2 million at December 31, 2025 due to a decrease in the yield in the loan portfolio. Property held for investment was $1.3 million at both June 30, 2026 and December 31, 2025. Right of use assets — operating decreased $360,000, or 7.7%, to $4.3 million at June 30, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation of the right of use assets. Other assets increased $117,000, or 1.1%, to $11.1 million at June 30, 2026 from $11.0 million at December 31, 2025 due to an increase of $725,000 in suspense accounts, partially offset by decreases of $528,000 in tax assets and $90,000 in prepaid expenses. Total deposits decreased $80.4 million, or 5.0%, to $1.5 billion at June 30, 2026 from $1.6 billion at December 31, 2025. The decrease in deposits was primarily due to decreases in certificates of deposit of $190.8 million, or 21.2%, and savings account balances of $10.6 million, or 7.5%, partially offset by increases in NOW/money market accounts of $67.5 million, or 22.3% and non-interest bearing deposits of $53.5 million, or 19.7%. The decrease of $190.8 million in certificates of deposit consisted of decreases of $129.0 million, or 34.9%, in brokered certificates of deposit, $38.3 million, or 56.6%, in non-brokered listing services certificates of deposit, and $23.4 million, or 5.3% in retail certificates of deposit. The decrease in brokered certificates of deposit and non-brokered listing services certificates of deposit was due to management’s strategy to reduce the cost of funds by “calling” higher rate brokered deposits on their call dates and to rely less on brokered deposits and non-brokered listing service deposits. The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts. Advance payments by borrowers for taxes and insurance increased $210,000, or 8.9%, to $2.6 million at June 30, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate tax payments from borrowers. Borrowings increased $120.0 million, or 171.4%, to $190.0 million at June 30, 2026 from $70.0 million at December 31, 2025 due primarily to management’s strategy to reduce the cost of funds and lessen reliance on brokered deposits and non-brokered listing service deposits. Lease liability – operating decreased $329,000, or 6.9%, to $4.5 million at June 30, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability. Accounts payable and accrued expenses increased $980,000, or 6.0%, to $18.6 million at June 30, 2026 from $17.3 million at December 31, 2025 due primarily to increases in accounts payable of $1.3 million, suspense account – loan closings of $322,000, deferred compensation of $291,000, the allowance for credit losses for off-balance sheet commitments of $284,000, and accrued interest expense of $107,000, partially offset by a decrease in accrued expenses of $1.0 million. Stockholders’ equity increased $10.9 million, or 3.1% to $362.6 million at June 30, 2026, from $351.7 million at December 31, 2025. The increase in stockholders’ equity was due to net income of $19.7 million for the six months ended June 30, 2026, the amortization expense of $1.1 million relating to restricted stock and stock options granted
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Table of Contents 36 under the Company’s 2022 Equity Incentive Plan, an increase of $371,000 in earned employee stock ownership plan shares coupled with a reduction of $261,000 in unearned employee stock ownership plan shares, $37,000 in stock options exercised, and $25,000 in other comprehensive income. These increases were offset by dividends declared of $6.0 million and stock repurchases and excise taxes of $4.7 million. Results of Operations for the Three Months Ended June 30, 2026 and 2025 Financial Highlights Net income for the three months ended June 30, 2026 was $9.8 million compared to net income of $11.2 million for the three months ended June 30, 2025. The decrease in net income of $1.4 million, or 12.3%, between periods was primarily due to a credit loss expense of $860,000 for the three months ended June 30, 2026 compared to no credit loss expense for the three months ended June 30, 2025, a decrease of $424,000 in net interest income, a decrease of $216,000 in non-interest income, and an increase of $110,000 in non-interest expense, partially offset by a decrease of $235,000 in income tax expense. Net Interest Income Net interest income was $24.7 million for the three months ended June 30, 2026, as compared to $25.1 million for the three months ended June 30, 2025. The decrease in net interest income of $424,000, or 1.7%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense caused by a decrease in the yield on interest-earning assets that exceeded the decrease in the cost of funds for interest-bearing liabilities. Total interest and dividend income decreased $2.0 million, or 5.2%, to $36.1 million for the three months ended June 30, 2026 from $38.1 million for the three months ended June 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets by 60 basis points from 8.11% for the three months ended June 30, 2025 to 7.51% for the three months ended June 30, 2026, partially offset by an increase in the average balance of interest-earning assets of $43.8 million, or 2.3%, to $1.9 billion for the three months ended June 30, 2026 from $1.9 billion for the three months ended June 30, 2025. Interest expense decreased $1.6 million, or 12.0%, to $11.4 million for the three months ended June 30, 2026 from $13.0 million for the three months ended June 30, 2025. The decrease in interest expense was due to a decrease in the cost of interest-bearing liabilities by 43 basis points from 3.88% for the three months ended June 30, 2025 to 3.45% for the three months ended June 30, 2026. The decrease in interest expense was also due to a decrease in the average balance of interest-bearing liabilities of $16.0 million, or 1.2%, to $1.3 billion for the three months ended June 30, 2026 from $1.3 billion for the three months ended June 30, 2025. Our net interest margin decreased 21 basis points, or 3.9%, to 5.14% for the three months ended June 30, 2026 compared to 5.35% for the three months ended June 30, 2025. The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities. Credit Loss Expense The Company recorded credit loss expense of $860,000 for the three months ended June 30, 2026 compared to no credit loss expense for the three months ended June 30, 2025. The credit loss expense of $860,000 for the three months ended June 30, 2026 was comprised of credit loss expense for loans of $680,000, credit loss expense for off-balance sheet commitments of $171,000, and credit loss expense for held-to-maturity securities of $9,000. The credit loss expense for loans of $680,000 for the three months ended June 30, 2026 was primarily due to an increase in the loan portfolio and increased credit risk in commercial and industrial loans due to a $500,000 loan charge-off. The credit loss expense for off-balance sheet commitments of $171,000 for the three months ended June 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments. The credit loss expense for held-to-maturity securities of $9,000 for the three months ended June 30, 2026 was primarily due to an increase in the municipal bond portfolio.
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Table of Contents 37 With respect to the allowance for credit losses for loans, we charged-off $520,000 during the quarter ended June 30, 2026, as compared to charge-offs of $485,000 during the quarter ended June 30, 2025. The charge-offs during the quarter ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $20,000 against various unpaid overdrafts in our demand deposit accounts. The charge- offs during the quarter ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts. We recorded no recoveries during the quarter ended June 30, 2026 compared to recoveries of $82,000 during the quarter ended June 30, 2025. The recoveries of $82,000 during the quarter ended June 30, 2025 comprised of recoveries from a previously charged-off unpaid overdraft on a demand deposit account. Non-Interest Income Non-interest income for the three months ended June 30, 2026 was $642,000 compared to non-interest income of $858,000 for the three months ended June 30, 2025. The decrease of $216,000, or 25.2%, in total non-interest income was primarily due to decreases of $173,000 in unrealized gain/(loss) on equity securities and $62,000 in other loan fees and service charges, partially offset by increases of $15,000 in BOLI income and $4,000 in miscellaneous other non-interest income. The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of $122,000 on equity securities during the quarter ended June 30, 2026 compared to an unrealized gain of $51,000 on equity securities during the quarter ended June 30, 2025. The unrealized loss of $122,000 and unrealized gain of $51,000 on equity securities during the quarters ended June 30, 2026 and 2025, respectively, were due to market interest rate volatility during both periods. The decrease of $62,000 in other loan fees and service charges was due to decreases of $82,000 in loan service charges and fees, partially offset by an increase of $20,000 in ATM/debit card/ACH fees. The increase of $15,000 in BOLI income was due to an increase in the yield on BOLI assets. The increase of $4,000 in miscellaneous other non-interest income was due to increases in miscellaneous operating income during the quarter. Non-Interest Expense Non-interest expense increased $110,000, or 1.0%, to $10.6 million for the three months ended June 30, 2026 from $10.5 million for the three months ended June 30, 2025. The increase resulted primarily from increases of $291,000 in other operating expense, $166,000 in salaries and employee benefits, and $44,000 in occupancy expense, partially offset by decreases of $247,000 in real estate owned expense, $79,000 in advertising expense, $33,000 in outside data processing expense, and $32,000 in equipment expense. Other non-interest operating expense increased $291,000, or 10.6%, to $3.0 million for the three months ended June 30, 2026 from $2.7 million for the three months ended June 30, 2025 due mainly to increases of $331,000 in miscellaneous other non-interest expense, $35,000 in consulting fees, $29,000 in service contracts expense, $28,000 in insurance expense, $16,000 in legal fees, $12,000 in directors, officers and employees expense, and $1,000 in directors compensation. These were partially offset by decreases of $77,000 in regulatory fees, $32,000 in audit and accounting expense, $22,000 in telephone expense, $17,000 in recruitment expense, $7,000 in office supplies expense, and $6,000 in dues and subscription expense. The increase of $331,000 in miscellaneous other non-interest expense was mainly due to increases of $314,000 in miscellaneous charge-offs, $49,000 in public company expense, and $12,000 in check and correspondence bank charges, partially offset by a decrease of $44,000 in miscellaneous other non-interest expense. The increase of $314,000 in miscellaneous charge-offs was due to an increase in customer fraud involving checks and debit cards. Salaries and employee benefits increased $166,000, or 2.9%, to $5.8 million for the three months ended June 30, 2026 from $5.7 million for the three months ended June 30, 2025 primarily due to the hiring of additional personnel to support the growth of the Company and an increase in employee compensation and benefits expense in order to retain key personnel, partially offset by an increase in loan origination offset expenses.
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Table of Contents Occupancy expense increased $44,000, or 5.9%, to $787,000 for the three months ended June 30, 2026 from $743,000 for the three months ended June 30, 2025 primarily due to repairs and maintenance at various offices and increased utilities cost. Real estate owned expense decreased $247,000 to none for the three months ended June 30, 2026 from $247,000 for the three months ended June 30, 2025 due to the sale of two real estate owned properties during 2025, with the Bronx real estate owned property sold in June 2025 and the Pittsburgh real estate owned property sold in December 2025. The $247,000 real estate owned expense during the second quarter of 2025 comprised mainly of closing costs of $231,000 associated with the sale of the Bronx property and the operating expense of the Pittsburgh property. Advertising expense decreased $79,000, or 64.2%, to $44,000 for the three months ended June 30, 2026 from $123,000 for the three months ended June 30, 2025 due to a decrease in various marketing campaigns. Outside data processing expense decreased $33,000, or 4.4%, to $725,000 for the three months ended June 30, 2026 from $758,000 for the three months ended June 30, 2025 due to a reduction in one-time initial fees for new services. Equipment expense decreased $32,000, or 12.6%, to $221,000 for the three months ended June 30, 2026 from $253,000 for the three months ended June 30, 2025 due to a reduction in the upgrades of equipment. Income Taxes We recorded income tax expense of $4.0 million and $4.3 million for the three months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026, we had approximately $252,000 in tax exempt income, compared to approximately $210,000 in tax exempt income for the three months ended June 30, 2025. Our effective income tax rate was 29.1% for the three months ended June 30, 2026 compared to 27.6% for the three months ended June 30, 2025. Results of Operations for the Six Months Ended June 30, 2026 and 2025 Financial Highlights Net income for the six months ended June 30, 2026 was $19.7 million compared to net income of $21.7 million for the six months ended June 30, 2025. The decrease in net income of $2.0 million, or 9.2%, between periods was primarily due to a decrease of $554,000 in net interest income, an increase of $623,000 in credit loss expense, a decrease of $655,000 in non-interest income, and an increase of $371,000 in non- interest expense, partially offset by a decrease of $213,000 in income tax expense. Net Interest Income Net interest income was $48.8 million for the six months ended June 30, 2026 as compared to $49.3 million for the six months ended June 30, 2025. The decrease in net interest income of $555,000, or 1.1%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense and a decrease in the yield on interest earning assets, partially offset by a smaller decrease in the cost of funds for interest bearing liabilities. Total interest and dividend income decreased $4.2 million, or 5.5%, to $72.0 million for the six months ended June 30, 2026 from $76.2 million for the six months ended June 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest earning assets by 60 basis points from 8.08% for the six months ended June 30, 2025 to 7.48% for the six months ended June 30, 2026, partially offset by an increase in the average balance of interest earning assets of $39.5 million, or 2.1%, to $1.9 billion for the six months ended June 30, 2026 from $1.9 billion for the six months ended June 30, 2025. Interest expense decreased $3.7 million, or 13.6%, to $23.2 million for the six months ended June 30, 2026 from $26.9 million for the six months ended June 30, 2025. The decrease in interest expense was due to a decrease in the cost of interest bearing liabilities by 51 basis points from 3.97% for the six months ended June 30, 2025 to 3.46% for the six months ended June 30, 2026 and a decrease in average interest bearing liabilities of $13.0 million, or 1.0%, to $1.3 billion for the six months ended June 30, 2026 from $1.4 billion for the six months ended June 30, 2025. Net interest margin decreased 17 basis points, or 3.2%, to 5.06% for the six months ended June 30, 2026 compared to 5.23% for the six months ended June 30, 2025. The decrease in the net interest margin was due to a 75 basis points
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Table of Contents decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities. Credit Loss Expense The Company recorded a credit loss expense of $860,000 for the six months ended June 30, 2026 compared to a credit loss expense of $237,000 for the six months ended June 30, 2025. The credit loss expense of $860,000 for the six months ended June 30, 2026 was comprised of credit loss expense for loans of $568,000, credit loss expense for off-balance sheet commitments of $283,000, and credit loss expense for held-to-maturity securities of $9,000. The credit loss expense of $237,000 for the six months ended June 30, 2025 was comprised of credit loss expense for loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000. The credit loss expense for loans of $568,000 for the six months ended June 30, 2026 was primarily due to an increase in the loan portfolio. The credit loss expense for off-balance sheet commitments of $283,000 for the six months ended June 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments. The credit loss expense for held-to-maturity securities of $9,000 for the six months ended June 30, 2026 was primarily due to an increase in the municipal bond portfolio. The credit loss expense for loans of $62,000 for the six months ended June 30, 2025 was primarily due to an increase in the multi-family loan portfolio. The credit loss expense for off-balance sheet commitments of $175,000 for the six months ended June 30, 2025 was primarily due to an increase in unfunded off-balance sheet commitments. With respect to the allowance for credit losses for loans, we charged-off $547,000 during the six months ended June 30, 2026 as compared to charge-offs of $602,000 during the six months ended June 30, 2025. The charge-offs during the six months ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $47,000 against various unpaid overdrafts in our demand deposit accounts. The charge- offs during the six months ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts. We recorded no recoveries during the six months ended June 30, 2026 compared to recoveries of $434,000 during the six months ended June 30, 2025. The recoveries of $434,000 during the six months ended June 30, 2025 comprised of recoveries of $350,000 with respect to a previously charged-off non- residential mortgage loan and $84,000 from previously charged-off unpaid overdrafts on demand deposit accounts. Non-Interest Income Non-interest income for the six months ended June 30, 2026 was $1.4 million compared to non-interest income of $2.1 million for the six months ended June 30, 2025. The decrease of $655,000, or 31.3%, in total non-interest income was primarily due to decreases of $594,000 in unrealized gain/(loss) on equity securities and $133,000 in other loan fees and service charges, partially offset by increases of $45,000 in miscellaneous other non-interest income and $27,000 in BOLI income. The decrease in unrealized gain on equity securities was due to an unrealized loss of $243,000 on equity securities during the six months ended June 30, 2026 compared to an unrealized gain of $351,000 on equity securities during the six months ended June 30, 2025. Both the unrealized loss of $243,000 on equity securities during the 2026 period and the unrealized gain of $351,000 on equity securities during the 2025 period were due to market interest rate volatility during both periods. The decrease of $133,000 in other loan fees and service charges was due to a decrease of $226,000 in other loan fees and loan servicing fees, partially offset by an increase of $92,000 in ATM/debit card/ACH fees. The increase of $45,000 in miscellaneous other non-interest income was due to general accrual adjustments during the first quarter of 2026. The increase in BOLI income of $27,000 was due to an increase in the yield on BOLI assets. Non-Interest Expense Non-interest expense increased $371,000, or 1.8%, to $21.5 million for the six months ended June 30, 2026 from $21.1 million for the six months ended June 30, 2025. The increase resulted primarily from increases of $406,000 in salaries and employee benefits, $208,000 in other operating expense, $172,000 in occupancy expense, and $27,000 in
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Table of Contents 40 outside data processing expense, partially offset by decreases of $277,000 in real estate owned expense, $139,000 in advertising expense, and $26,000 in equipment expense. Salaries and employee benefits increased $406,000, or 3.5%, to $12.0 million for the six months ended June 30, 2026 from $11.6 million for the six months ended June 30, 2025 primarily due to the hiring of additional personnel to support the growth of the Company and an increase in employee compensation and benefits expense in order to retain key personnel, partially offset by an increase in loan origination offset expenses. Other non-interest expense increased $208,000, or 3.7%, to $5.8 million for the six months ended June 30, 2026 from $5.6 million for the six months ended June 30, 2025 due mainly to increases of $351,000 in miscellaneous other non-interest expense, $60,000 in service contract expense, $44,000 in legal fees, $34,000 on insurance expense, $32,000 in directors, officers, and employee expense, $23,000 in consultant fees, and $19,000 in directors compensation, partially offset by decreases of $189,000 in regulatory fees, $41,000 in recruitment expense, $40,000 in audit and accounting fees, $39,000 in telephone expense, $28,000 in office supplies expense, and $18,000 in dues and subscriptions expense. The increase of $351,000 in miscellaneous other non-interest expense was mainly due to increases of $336,000 in miscellaneous charge-offs, $46,000 in public company expenses, and $22,000 in check and correspondence bank charges, partially offset by decreases of $51,000 in miscellaneous other non-interest expense and $3,000 in postage expense. The increase of $336,000 in miscellaneous charge-offs was due to an increase in customer fraud involving checks and debit cards. Occupancy expense increased $172,000, or 11.6%, to $1.7 million for the six months ended June 30, 2026 from $1.5 million for the six months ended June 30, 2025 primarily due to repairs and maintenance at various offices and increased utilities cost. Outside data processing expense increased nominally by $27,000, or 1.8%, to $1.5 million for the six months ended June 30, 2026 from $1.5 million for the six months ended June 30, 2025. Real estate owned expense decreased $277,000 to none for the six months ended June 30, 2026 from $277,000 for the six months ended June 30, 2025 due to the sale of two real estate owned properties during 2025, with the Bronx real estate owned property sold in June 2025 and the Pittsburgh real estate owned property sold in December 2025. The $277,000 real estate owned expense during the second quarter of 2025 comprised mainly of closing costs of $231,000 associated with the sale of the Bronx property and the operating cost of the Pittsburgh property. Advertising expense decreased $139,000, or 61.8%, to $86,000 for the six months ended June 30, 2026 from $225,000 for the six months ended June 30, 2025 due to a decrease in various marketing campaigns. Equipment expense decreased $26,000, or 5.5%, to $444,000 for the six months ended June 30, 2026 from $470,000 for the six months ended June 30, 2025 due to a reduced need to purchase additional equipment for upgrading purposes. Income Taxes We recorded income tax expense of $8.1 million and $8.3 million for the six months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026, we had approximately $500,000 in tax exempt income, compared to approximately $415,000 in tax exempt income for the six months ended June 30, 2025. Our effective income tax rates were 29.1% and 27.7% for the six months ended June 30, 2026 and 2025, respectively. Average Balances and Yields The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average daily balances of assets or liabilities, respectively, for the periods presented. Loan fees, including prepayment fees, are included in interest income on loans and are not material. Non-accrual loans are included in the average balances only. In addition, yields are not presented on a tax-equivalent basis. Any adjustments necessary to present yields on a tax-equivalent basis are insignificant.
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Table of Contents 41 Three Months Ended June 30, 2026 2025 Average Interest and Yield/ Average Interest and Yield/ Balance Dividends Cost Balance Dividends Cost Loans receivable $ 1,823,222 $ 35,174 7.72 % $ 1,754,363 $ 36,740 8.38 % Securities 45,375 324 2.86 37,839 265 2.80Federal Home Loan Bank stock 536 8 5.97 438 7 6.39 Other interest-earning assets 50,466 554 4.39 83,135 1,027 4.94 Total interest-earning assets 1,919,599 36,060 7.51 1,875,775 38,039 8.11 Allowance for credit losses (4,594) (5,122) Non-interest-earning assets 93,251 95,651 Total assets $ 2,008,256 $ 1,966,304 Interest bearing demand $ 346,797 $ 2,652 3.06 % $ 298,689 $ 2,401 3.22 % Savings and club accounts 133,982 662 1.98 141,238 761 2.16 Certificates of deposit 754,660 7,296 3.87 815,000 8,891 4.36 Interest-bearing deposits 1,235,439 10,610 3.44 1,254,927 12,053 3.84 Borrowed money $ 86,151 800 3.71 82,712 912 4.41 Interest-bearing liabilities 1,321,590 11,410 3.45 1,337,639 12,965 3.88 Non-interest-bearing demand 299,529 274,466 Other non-interest-bearing liabilities 24,773 20,114 Total liabilities 1,645,892 1,632,219 Equity 362,364 334,085 Total liabilities and equity $ 2,008,256 $ 1,966,304 Net interest income/interest spread $ 24,650 4.06 % $ 25,074 4.23 % Net interest margin 5.14 % 5.35 % Net interest-earning assets $ 598,009 $ 538,136 Average interest-earning assets to interest-bearingliabilities 145.25 % 140.23 % Six Months Ended June 30, 2026 2025 Average Interest and Yield/ Average Interest and Yield/ Balance Dividends Cost Balance Dividends Cost Loans receivable $ 1,825,651 $ 70,216 7.69 % $ 1,761,069 $ 73,622 8.36 % Securities 45,234 643 2.84 37,298 500 2.68Federal Home Loan Bank stock 473 14 5.92 418 16 7.66 Interest-bearing deposits 55,251 1,156 4.18 88,277 2,108 4.78 Total interest-earning assets 1,926,609 72,029 7.48 1,887,062 76,246 8.08 Allowance for credit losses (4,661) (4,978) Non-interest-earning assets 92,237 96,071 Total assets $ 2,014,185 $ 1,978,155 Interest bearing demand $ 334,730 $ 5,105 3.05 % $ 286,726 $ 4,846 3.38 % Savings and club accounts 134,899 1,332 1.97 140,077 1,491 2.13 Certificates of deposit 806,181 15,575 3.86 888,136 19,649 4.42 Interest-bearing deposits 1,275,810 22,012 3.45 1,314,939 25,986 3.95 Borrowed money 67,710 1,233 3.64 41,584 922 4.43 Interest-bearing liabilities 1,343,520 23,245 3.46 1,356,523 26,908 3.97 Non-interest-bearing demand 287,324 272,680 Other non-interest-bearing liabilities 23,389 19,107 Total liabilities 1,654,233 1,648,310 Equity 359,952 329,845 Total liabilities and equity $ 2,014,185 $ 1,978,155 Net interest income/interest spread $ 48,784 4.02 % $ 49,338 4.11 % Net interest margin 5.06 % 5.23 % Net interest-earning assets $ 583,089 $ 530,539 Average interest-earning assets to interest-bearingliabilities 143.40 % 139.11 %
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Table of Contents 42 Rate/Volume Analysis The following tables set forth the effects of changing rates and volumes on our net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. Three Months Ended 6/30/2026 Compared toThree Months Ended 6/30/2025 Increase (Decrease)Due to Volume Rate Total (Dollars in thousands) Interest income: Loans receivable $ 7,179 $ (8,745) $ (1,566) Securities 54 5 59 Federal Home Loan Bank stock 4 (3) 1 Other interest-earning assets (369) (104) (473) Total $ 6,868 $ (8,847) $ (1,979) Interest expense: Interest bearing demand deposit $ 911 $ (660) $ 251 Savings accounts (38) (61) (99) Certificates of deposits (629) (966) (1,595) Borrowed money 217 (329) (112) Total 461 (2,016) (1,555) Net change in net interest income $ 6,407 $ (6,831) $ (424) Six Months Ended 6/30/2026Compared toSix Months Ended 6/30/2025 Increase (Decrease)Due to Volume Rate Total (Dollars in thousands) Interest income: Loans receivable $ 6,335 $ (9,741) $ (3,406) Securities 111 32 143 Federal Home Loan Bank stock 5 (7) (2) Interest-bearing deposits (715) (237) (952) Total $ 5,736 $ (9,953) $ (4,217) Interest expense: Interest bearing demand deposit $ 1,359 $ (1,100) $ 259 Savings accounts (54) (105) (159) Certificates of deposits (1,716) (2,358) (4,074) Borrowed money 755 (444) 311 Total 344 (4,007) (3,663) Net change in net interest income $ 5,392 $ (5,946) $ (554) Asset Quality We had no non-performing assets at June 30, 2026 and at December 31, 2025. During the six months ended June 30, 2026 and 2025, we did not collect any interest income from loans that were in non-accrual status.
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Table of Contents 43 From time to time, as part of our loss mitigation strategy, we may modify loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. During the three and six months ended June 30, 2026, three loans totaling $17.4 million were modified to one borrower experiencing financial difficulty whereby the weighted average contractual interest rates of the three loans were reduced to 5.63% from 8.75%. There were no loans modified to borrowers experiencing financial difficulty during the year ended December 31, 2025. The performance of the loans made to the borrower experiencing financial difficulty in which modifications were made is closely monitored to determine the effectiveness of modification efforts. At June 30, 2026, the three loans were current. The following table sets forth an analysis of the activity in the allowance for credit losses related to loans for the periods indicated: June 30, December 31, 2026 2025 (Dollars In Thousands) Allowance at beginning of period $ 4,731 $ 4,830 Provision for credit losses 568 (272) Net Charge-offs (recovery): Residential real estate loans: One- to four-family — — Multifamily — — Mixed-use — — Total residential real estate loans — — Non-residential real estate loans — (350) Construction loans — (334) Commercial and industrial loans 500 — Consumer loans 47 511 Total net charge-offs (recovery) 547 (173) Allowance at end of period $ 4,752 $ 4,731 Total loans outstanding $ 1,919,908 $ 1,860,334 Average loans outstanding 1,825,651 1,805,645 Ratio of allowance to non-performing loans —% —% Ratio of allowance to total loans 0.25% 0.25% Ratio of net charge-offs (recovery) to average loans 0.03% (0.01)% Non-performing loans $ — $ — The Company’s allowance for credit losses related to loans totaled $4.8 million, or 0.25% of total loans as of June 30, 2026 compared to $4.7 million, or 0.25% of total loans as of December 31, 2025. In addition, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $1.2 million as of June 30, 2026 compared to $879,000 at December 31, 2025. The allowance for credit losses related to held- to-maturity debt securities totaled $135,000 at June 30, 2026 compared to $126,000 at December 31, 2025. The allowance for credit losses related to loans increased $21,000 to $4.8 million at June 30, 2026 from $4.7 million at December 31, 2025 due primarily to a provision for credit losses of $568,000 due to an increase in the loan portfolio, partially offset by charge-offs totaling $547,000. The allowance for credit losses related to off-balance sheet commitments increased $284,000 to $1.2 million at June 30, 2026 from $879,000 at December 31, 2025 due to a provision for credit losses of $284,000 due to an increase of $204.2 million, or 30.0%, in outstanding commitments between periods.
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Table of Contents 44 Liquidity and Capital Resources We maintain liquid assets at levels we believe are adequate to meet our liquidity needs. We established a liquidity ratio policy that identifies three liquidity ratios consisting of (1) Cash/Deposits & Short Term Borrowings (“Cash Liquidity”), (2) Cash & Investments/Deposits & Short Term Borrowings (“On Balance Sheet Liquidity”), and (3) Cash & Investments & Borrowing Capacity/Deposits & Short Term Borrowings (“On Balance Sheet Liquidity & Borrowing Capacity”) to assist in the management of our liquidity. We also establish targets of 2.0% for the Cash Liquidity ratio, 5.0% for the On Balance Sheet Liquidity ratio, and 20.0% for the On Balance Sheet Liquidity & Borrowing Capacity ratio. Our Cash Liquidity ratio, On Balance Sheet Liquidity ratio, and On Balance Sheet Liquidity & Borrowing Capacity ratio averaged 4.2%, 6.9%, and 55.6%, respectively, for the six months ended June 30, 2026 compared to 5.0%, 7.4%, and 59.9%, respectively, for the year ended December 31, 2025. We adjust our liquidity levels to fund deposit outflows, pay real estate taxes on real estate loans, repay our borrowings, and fund loan commitments. We also adjust liquidity as appropriate to meet asset and liability management objectives. Our liquidity ratios cannot be calculated using amounts disclosed in our consolidated financial statements, as many of the calculations involve monthly, quarterly or annual averages. To calculate our liquidity ratios, the average liquidity base from the prior month is used as the denominator to calculate a daily liquidity ratio. The liquidity base consists of savings account balances, certificates of deposit balances, checking and money market balances, deposit loans and borrowings. The daily balances of these components are averaged to arrive at the liquidity base for the month, and the daily cash balances in selected general ledger accounts are used to derive our liquidity position. A daily liquidity ratio is calculated using the liquidity for the day divided by the prior month’s average liquidity base. At the end of each month, a monthly liquidity position is calculated using the average liquidity position for the month divided by the prior month’s average liquidity base. To calculate quarterly and annual liquidity ratios, we take the average liquidity for the three- or twelve-month period, respectively, and average it. Given the rapid movement of deposits in today’s banking environment, the Company also manages its liquidity position through a time-series approach to liquidity availability. Traditional liquidity management focuses on on-balance sheet capacity; however, converting those assets into cash may involve delays or market-driven losses. To address this, the Company emphasizes the actual accessibility of liquidity as measured by when cash becomes available in the Company’s Cash Accounts rather than simply its balance sheet presence. This time-series liquidity framework is analyzed across the following intervals: Minute 1, Day 1, Week 1, Month 1, and Year 1. This structure ensures a proactive and disciplined approach to managing liquidity risk. Minute 1: Represents the amount of cash the Company can immediately access and disperse within one minute while remaining solvent. It is defined as the cash and cash equivalents currently on the balance sheet and typically covers daily cash needs. Day 1: In the event of a liquidity run, this is the amount of cash that the Company can access and disperse within one day. It includes Minute 1 liquidity plus total borrowing capacity from the Federal Home Loan Bank, Federal Reserve Bank, and other secured and unsecured sources. Week 1: In a prolonged liquidity event, this is the amount of cash available over one week. Week 1 liquidity includes Day 1 liquidity plus the estimated collateral value of unpledged investments that can be pledged or sold, as well as a portion (typically 10% each) of the Company’s brokered and listing service deposit capacity expected to be accessible within the week. Month 1: Represents the total cash the Company can access and disperse over a one-month period while remaining solvent. It includes Week 1 liquidity plus the remaining brokered and listing service deposit capacity not already included in Week 1. Year 1: Reflects the amount of liquidity the Company can access and deploy over a one-year time period. It includes Month 1 liquidity plus the value of unpledged but pledgeable loans available on the balance sheet.
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Table of Contents To assess the adequacy of its liquidity, the Company compares time-series liquidity against Total Non- Contractual Deposits defined as total deposits less (1) brokered deposits outstanding, (2) other contractual funding outstanding, and (3) collateralized municipal deposits outstanding. As of June 30, 2026, the Company’s ratios of Cash and Borrowing Capacity/Total Non-Contractual Deposits and Cash, Borrowing Capacity and Sourced Deposits Capacity/Total Non-Contractual Deposits were 55.2% and 100.9%, respectively. These figures demonstrate that the Company has sufficient liquidity resources to meet sudden and unexpected deposit outflow. Our primary sources of liquidity are deposits, prepayment of loans and mortgage-backed securities, maturities of investment securities, other short-term investments, earnings, and funds provided from operations. While scheduled principal repayments on loans and mortgage-backed securities are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and rates offered by our competition. We set the interest rates on our deposits to maintain a desired level of total deposits. In addition, we invest excess funds in short-term interest-earning assets, which provide liquidity to meet lending requirements. Our cash flows are derived from operating activities, investing activities and financing activities as reported in our Consolidated Statements of Cash Flows included with our Consolidated Financial Statements. Our primary investing activities are the origination of construction loans, commercial and industrial loans, multifamily loans, and to a lesser extent, mixed-use real estate loans and other loans. For the six months ended June 30, 2026 and 2025, our loan originations totaled $653.2 million and $462.7 million, respectively. Cash received from the maturities and pay-downs on securities totaled $1.0 million and $485,000 for the six months ended June 30, 2026 and 2025, respectively. We purchased $1.0 million in equity securities and $470,000 in municipal securities during the six months ended June 30, 2026 compared to purchases of $3.0 million in equity securities and $270,000 in municipal securities during the six months ended June 30, 2025. Liquidity management is both a daily and long-term function of business management. If we require funds beyond our ability to generate them internally, borrowing agreements exist with the Federal Reserve Bank of New York (“FRBNY”) whereby the Bank pledged eligible loans under the Borrower-in-Custody program of the FRBNY allowing the Bank to borrow from the Discount Window at the FRBNY. We had an available borrowing limit of $633.0 million and $768.8 million from the FRBNY at June 30, 2026 and December 31, 2025, respectively. We had $190.0 million in FRBNY borrowings at June 30, 2026 compared to $70.0 million in FRBNY borrowings at December 31, 2025. As a member of the Federal Home Loan Bank of New York (“FHLB-NY”), we are required to own capital stock in the FHLB-NY and are authorized to apply for advances on the security of such stock and certain of our mortgage loans and other assets (principally securities which are obligations of, or guaranteed by, the United States), provided certain standards related to credit-worthiness have been met. In February 2026, we withdrew our pledged eligible loans from the FHLB-NY’s advance program and are in the process of pledging these eligible loans with the FRBNY to increase our borrowing capacity with the FRBNY. Due to the withdrawal of pledged eligible loans from the FHLB-NY, we no longer have borrowing capacity at the FHLB-NY at June 30, 2026 compared to borrowing capacity at the FHLB-NY of $35.8 million at December 31, 2025. We had no FHLB-NY advances at June 30, 2026 and December 31, 2025. In addition, we are party to a loan agreement with ACBB under which we can borrow up to $8.0 million in short-term borrowings. There were no outstanding borrowings with ACBB at June 30, 2026 and December 31, 2025. At June 30, 2026, we had unfunded commitments on construction and multi-family mortgage loans of $507.4 million, outstanding commitments to originate loans of $292.2 million, unfunded commitments under commercial and industrial loans lines of credit of $70.2 million, and unfunded standby letters of credit of $14.2 million. At June 30, 2026, certificates of deposit scheduled to mature in less than one year totaled $682.1 million. Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. In the event a significant portion of our deposits are not retained by us, we will have to utilize other funding sources, such as various types of sourced deposits, or Federal Reserve Bank borrowings, in order to maintain our level of assets. Alternatively, we could reduce our level of liquid assets, such as our cash and cash equivalents. In addition, the cost of such deposits may be significantly higher or lower depending on market interest rates at the time of renewal.
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Table of Contents The Company is a separate legal entity from the Bank and must provide for its own liquidity. In addition to its operating expenses, the Company is responsible for paying any dividends declared to its stockholders and for the repurchase, if any, of its shares of common stock. At June 30, 2026, the Company had liquid assets of $6.2 million and $1.9 million in loan participations originated by the Bank which are held by the Company. Off-Balance Sheet Arrangements For the three and six months ended June 30, 2026, we did not engage in any off-balance sheet transactions reasonably likely to have a material adverse effect on our financial condition, results of operations or cash-flows. Impact of Inflation and Changing Prices The consolidated financial statements and related notes of NorthEast Community Bancorp have been prepared in accordance with GAAP, which generally requires the measurement of financial position and operating results in terms of historical dollars without consideration for changes in the relative purchasing power of money over time due to inflation. The primary impact of inflation is reflected in the increased cost of our operations. Unlike industrial companies, our assets and liabilities are primarily monetary in nature. As a result, changes in market interest rates have a greater impact on performance than the effects of inflation. Item 3. Quantitative and Qualitative Disclosures About Market Risk Interest rate risk is defined as the exposure to current and future earnings and capital that arises from adverse movements in interest rates. Depending on a bank’s asset/liability structure, adverse movements in interest rates could be either rising or falling interest rates. For example, a bank with predominantly long- term fixed-rate assets and short-term liabilities could have an adverse earnings exposure to a rising rate environment. Conversely, a short-term or variable-rate asset base funded by longer-term liabilities could be negatively affected by falling rates. This is referred to as re-pricing or maturity mismatch risk. Interest rate risk also arises from changes in the slope of the yield curve (yield curve risk), from imperfect correlations in the adjustment of rates earned and paid on different instruments with otherwise similar re-pricing characteristics (basis risk), and from interest rate related options embedded in our assets and liabilities (option risk). Our objective is to manage our interest rate risk by determining whether a given movement in interest rates affects our net interest income and the market value of our portfolio equity in a positive or negative way and to execute strategies to maintain interest rate risk within established limits. The results at June 30, 2026 indicate the level of risk within the parameters of our model. Our management believes that the June 30, 2026 results indicate a profile that reflects interest rate risk exposures in both rising and declining rate environments for both net interest income and economic value. Model Simulation Analysis. We view interest rate risk from two different perspectives. The traditional accounting perspective, which defines and measures interest rate risk as the change in net interest income and earnings caused by a change in interest rates, provides the best view of short-term interest rate risk exposure. We also view interest rate risk from an economic perspective, which defines and measures interest rate risk as the change in the market value of portfolio equity caused by changes in the values of assets and liabilities, which fluctuate due to changes in interest rates. The market value of portfolio equity, also referred to as the economic value of equity, is defined as the present value of future cash flows from existing assets, minus the present value of future cash flows from existing liabilities. These two perspectives give rise to income simulation and economic value simulation, each of which presents a unique picture of our risk of any movement in interest rates. Income simulation identifies the timing and magnitude of changes in income resulting from changes in prevailing interest rates over a short- term time horizon (usually one or two years). Economic value simulation reflects the interest rate sensitivity of assets and liabilities in a more comprehensive fashion, reflecting all future time periods. It can identify the quantity of interest rate risk as a function of the changes in the economic values of assets and liabilities, and the corresponding change in the economic value of equity of NorthEast Community Bank. Both types of simulation assist in identifying, measuring, monitoring and controlling interest rate risk and are employed by management to ensure that variations in interest rate risk exposure will be maintained within policy guidelines.
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Table of Contents We produce these simulation reports and discuss them at our Asset and Liability Committee meetings on at least a quarterly basis. The simulation reports compare baseline (no interest rate change) to the results of an interest rate shock, to illustrate the specific impact of the interest rate scenario tested on income and equity. The model, which incorporates asset and liability rate information, simulates the effect of various interest rate movements on income and equity value. The reports identify and measure our interest rate risk exposure present in our current asset/liability structure. Management considers both a static (current position) and dynamic (forecast changes in volume) analysis as well as non-parallel and gradual changes in interest rates and the yield curve in assessing interest rate exposures. If the results produce quantifiable interest rate risk exposure beyond our limits, then the testing will have served as a monitoring mechanism to allow us to initiate asset/liability strategies designed to reduce and therefore mitigate interest rate risk. The table below sets forth an approximation of our interest rate risk exposure. The simulation uses projected repricing of assets and liabilities at June 30, 2026. The income simulation analysis presented represents a one-year impact of the interest scenario assuming a static balance sheet. Various assumptions are made regarding the prepayment speed and optionality of loans, investment securities and deposits, which are based on analysis and market information. The assumptions regarding optionality, such as prepayments of loans and the effective lives and repricing of non-maturity deposit products, are documented periodically through evaluation of current market conditions and historical correlations to our specific asset and liability products under varying interest rate scenarios. Because the prospective effects of hypothetical interest rate changes are based on a number of assumptions, these computations should not be relied upon as indicative of actual results. While we believe such assumptions to be reasonable, assumed prepayment rates may not approximate actual future prepayment activity on mortgage-backed securities or agency issued collateralized obligations (secured by one- to four- family loans and multifamily loans). Further, the computation does not reflect any actions that management may undertake in response to changes in interest rates and assumes a constant asset base. Management periodically reviews the rate assumptions based on existing and projected economic conditions and consults with industry experts to validate our model and simulation results. The table below sets forth, as of June 30, 2026, NorthEast Community Bank’s net portfolio value, the estimated changes in our net portfolio value and net interest income that would result from the designated instantaneous parallel changes in market interest rates. Twelve MonthNet Interest Income Net Portfolio Value Percent Percent Change in Interest Rates (Basis Points) of Change Estimated NPV of Change +200 14.81% $ 363,311 (5.19)% +100 7.47 373,292 (2.59) 0 — 383,213 — -100 (8.40) 390,291 1.85 -200 (16.36)% 390,497 1.90% As of June 30, 2026, based on the scenarios above, net interest income would increase by approximately 7.47% to 14.81%, over a one-year time horizon in a rising interest rate environment. One-year net interest income would decrease by approximately 8.40% to 16.36% in a declining interest rate environment over the same period. Economic value at risk would be positively impacted by a rise in interest rates and negatively impacted by a decline in interest rates. We have established an interest rate floor of zero percent for measuring interest rate risk. The difference between the two results reflects the relatively long terms of a portion of our assets which is captured by the economic value at risk but has less impact on the one year net interest income sensitivity. Overall, our June 30, 2026 results indicate that we are adequately positioned with an acceptable net interest income and economic value at risk and that all interest rate risk results continue to be within our policy guidelines. Item 4. Controls and Procedures Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and
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Table of Contents 48 procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective to ensure (1) that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms; and (2) that they are alerted in a timely manner about material information relating to the Company required to be filed in its periodic Securities and Exchange Commission filings. There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. PART II — OTHER INFORMATION Item 1. Legal Proceedings The Company is involved in various legal actions and claims arising in the normal course of business. In the opinion of management, these legal actions and claims are not expected to have a material adverse impact on the Company’s financial condition. Item 1A. Risk Factors For information regarding the Company’s risk factors, refer to “Item 1A: Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on March 13, 2026. As of June 30, 2026, the risk factors of the Company have not changed materially from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds On December 8, 2025, the Company announced that its Board of Directors had authorized a third stock repurchase program to acquire up to an additional 1,400,435, or 10%, of the Company’s currently issued and outstanding common stock commencing on December 10, 2025. The stock repurchase program is the Company’s third repurchase program since completing its second-step conversion and related stock offering in July 2021. The following table provides information on repurchases by the Company of its common stock under the Company’s stock repurchase program during the three months ended June 30, 2026: Total Number of Shares Maximum Number of Purchased as Part of Shares that May Yet Be Total Number of Average Price Paid Publicly Announced Purchased Under thePeriod Shares Purchased Per Share Plans or Programs Plans or Programs April 1 - 30, 2026 - $ - - 1,203,997 May 1 - 31, 2026 28,562 24.12 28,562 1,175,435 June 1 - 30, 2026 14,894 24.19 14,894 1,160,541 Total 43,456 43,456 Item 3. Defaults Upon Senior Securities Not applicable. Item 4. Mine Safety Disclosures Not applicable.
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Table of Contents 49 Item 5. Other Information During the quarter ended June 30, 2026, none of our directors or officers informed us of the adoption or termination of a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Item 408 of Regulation S-K. Item 6. Exhibits See Exhibit Index.
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Table of Contents 50 EXHIBIT INDEX ExhibitNo. Description 31.1† Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of NorthEast Community Bancorp, Inc. 31.2† Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of NorthEast Community Bancorp, Inc. 32.0† Certification of Chief Executive Officer and Chief Financial Officer of NorthEast Community Bancorp, Inc. Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.0† The following materials from the Company’s Quarterly Report to Stockholders on Form 10-Q for the quarter ended June 30, 2026, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Financial Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholder’s Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. 101.INS† XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document 101.SCH† XBRL Taxonomy Extension Schema Document 101.CAL† XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF† XBRL Taxonomy Extension Definition Linkbase Document 101.LAB† XBRL Taxonomy Extension Label Linkbase Document 101.PRE† XBRL Taxonomy Extension Presentation Linkbase Document 104† Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) † Filed herewith.
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Table of Contents 51 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, duly authorized. Date: August 7, 2026 NORTHEAST COMMUNITY BANCORP, INC. By: /s/ Kenneth A. Martinek Name:Kenneth A. Martinek Title: Chairman and Chief Executive Officer (Principal Executive Officer) By: /s/ Donald S. Hom Name:Donald S. Hom Title: Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
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Exhibit 31.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICER I, Kenneth A. Martinek, certify that: 1. I have reviewed this quarterly report on Form 10-Q of NorthEast Community Bancorp, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. Date: _August 7, 2026________ /s/ Kenneth A. MartinekKenneth A. MartinekChairman and Chief Executive Officer (Principal executive officer)
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Exhibit 31.2 CERTIFICATION OF CHIEF FINANCIAL OFFICER I, Donald S. Hom, certify that: 1. I have reviewed this quarterly report on Form 10-Q of NorthEast Community Bancorp, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. Date: August 7, 2026 /s/ Donald S. HomDonald S. HomExecutive Vice President and Chief FinancialOfficer(Principal financial and chief accountingofficer)
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Exhibit 32.0CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADDED BYSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of NorthEast Community Bancorp, Inc. (the“Company”) on Form 10-Q for the period ended June 30, 2026 as filed with the Securities and ExchangeCommission (the “Report”), the undersigned hereby certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of theSecurities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, thefinancial condition and results of operations of the Company as of and for the periodcovered by the Report. /s/ Kenneth A. MartinekKenneth A. MartinekChairman and Chief ExecutiveOfficer /s/ Donald S. HomDonald S. HomExecutive Vice President andChief Financial Officer Date: August 7, 2026