AMAL 10-K & 10-Q changes, risk factors and insider trading

Some elements of the business environment that affect our financial performance include short-term and long-term interest rates, the prevailing yield curve, inflation, monetary supply, fluctuations in the debt and equity capital markets, and the strength of the domestic economy and the local economies in the markets in which we operate. Unfavorable market conditions can result in a deterioration of the credit quality of borrowers, an increase in the number of loan delinquencies, defaults and charge-offs, foreclosures, additional provisions for credit losses, adverse asset values and a reduction in assets under management or administration. The majority of our loan portfolio is secured by real estate, 8.8%33.2% of which is multifamily and 7.3% of which is commercial real estate. A decline in real estate values can negatively impact our ability to recover our investment should the borrower become delinquent. Loans secured by stock or other collateral may be adversely impacted by a downturn in the economy and other factors that could reduce the recoverability of our investment. Unsecured loans are dependent on the solvency of the borrower, which can deteriorate, leaving us with a risk of loss. Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity or investor or business confidence, limitations on the availability of or increases in the cost of credit and capital, increases in inflation or interest rates, high unemployment, natural disasters, epidemics and pandemics, state or local government insolvency, or a combination of these or other factors.

There are continuing concerns related to, among other things, the level of U.S. government debt and fiscal actions that may be taken to address that debt, price fluctuations of key natural resources, U.S. intervention in Venezuela and its oil industry, U.S. military strikes and sanctions on Iran, the potential resurgence of economic and political tensions with China, the Russian invasion of Ukraine and increasing oil prices due to Russian supply disruptions, and the Israel-Hamas conflict, each of which may have a destabilizing effect on financial markets and economic activity. Economic pressure on consumers, including due to factors such as inflation and increased cost of goods due to tariffstariff structures on imports, as well as overall economic uncertainty may result in changes in consumer and business spending, borrowing and saving habits. These economic conditions and/or other negative developments in the domestic or international credit markets or economies may significantly affect the markets in which we do business, the value of our loans and investments, and our ongoing operations, costs and profitability. Declines in real estate values and sales volumes, high unemployment or underemployment, and inflation may also result in higher than expected loan delinquencies, increases in our levels of nonperforming and classified assets and a decline in demand for our products and services. These negative events may cause us to incur losses and may adversely affect our capital, liquidity and financial condition.

In some cases, management of our risks depends upon the use of analytical and/or forecasting models, which, in turn, rely on assumptions and estimates. If the models used to mitigate these risks are inadequate, or the assumption or estimates are inaccurate or otherwise flawed, we may fail to adequately protect against risks and may incur losses. ArtificalArtificial Intelligence ("AI") models may amplify existing risks, given the increased complexity of financial modellingmodeling and the challenges in explaining the models.

Fiscal challenges facing the U.S. government, such as the downgrade of the sovereign credit ratings of the U.S. by Fitch Ratings, could have an adverse impact on value of investments in GSEs and on the financial markets, interest rates and economic conditions in the U.S. and worldwide. Federalfederal budget deficit concerns and the potential for political conflict over legislation to fund U.S. government operations and raise the U.S. government's debt limit may increase the possibility of a default by the U.S. government on its debt obligations, additional related credit-rating downgrades, or an economic recession in the U.S. A significant portion of our securities portfolio is invested in GSE securities. As a result of uncertain domestic political conditions, including potential future federal government shutdowns or the possibility of the federal government defaulting on its obligations for a period of time, investments in financial instruments issued or guaranteed by the federal government pose liquidity and credit risks.

Although our asset-liability management strategy is designed to control and mitigate exposure to the risks related to changes in the general level of market interest rates, those rates are affected by many factors outside of our control, including inflation, recession, unemployment, money supply, international disorder, instability in domestic and foreign financial markets and policies of various governmental and regulatory agencies, particularly the Federal Open Market Committee ("FOMC") of the Federal Reserve. Adverse changes in the U.S. monetary policy or in economic conditions could materially and adversely affect us. On January 31,28, 20252026 the FOMC issued a statement that it decided to maintain short-term interest rates at a range of 4.25%3.5% to 4.50%,3.75%, and it now projects just two interestfuture rate cutschanges inwill 2025,be compareddata todependent; earlierimplying projectionsthey are holding rates constant for fourthe rateimmediate cuts.future. We could experience net interest margin compression if our rates on our interest earning assets fail to increase in tandem with rates on our interest-bearing liabilities. We could experience net interest margin compression if our rates on our interest bearing liabilities fail to decrease in tandem with rates on our interest earning assets. See Impact of Inflation and Changing Interest Rates under Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations." Similarly, if short-term interest rates increase and long-term interest rates do not increase, or increase but at a slower rate, we could experience net interest margin compression as our rates on interest earning assets decline measured relative to rates on our interest-bearing liabilities. Any such occurrence could have a material adverse effect on our net interest income and on our business, financial condition and results of operations.

As of December 31, 2024,2025, the fair value of our investment securities portfolio was approximately $3.18$3.22 billion. Factors beyond our control could significantly affect the fair value of these securities. These factors include, but are not limited to, changes in market conditions including changes in interest rates or spreads, changes in the credit profile of individual securities, changes in prepayment behavior of individual securities, rating agency actions in respect of the securities, or adverse regulatory action. Any of these factors, among others, could cause other-than-temporary impairments, or OTTI, and realized and/or unrealized losses in future periods and declines in earnings and/or other comprehensive income (loss), which could materially and adversely affect our assets, business, cash flow, condition (financial or otherwise), liquidity, results of operations and prospects. The process for determining whether impairment of a security ishas experienced an OTTI usually requires complex, subjective judgments about the future financial performance and liquidity of the issuer, any collateral underlying the security as well as our intent and ability to hold the security for a sufficient period of time to allow for any anticipated recovery in fair value in order to assess the probability of receiving all contractual principal and interest payments on the security. Our failure to assess any impairments or losses with respect to our securities could have a material adverse effect on our assets, business, cash flow, condition (financial or otherwise), liquidity, results of operations and prospects.

We must effectively manage credit risk. As a lender, we are exposed to the risk that our borrowers will be unable to repay their loans according to their terms, and that the collateral securing repayment of their loans, if any, may not be sufficient to ensure repayment. In addition, there are risks inherent in making any loan, including risks relating to proper loan underwriting, risks resulting from changes in economic and industry conditions and risks inherent in dealing with individual borrowers, including the risk that a borrower may not provide information to us about its business in a timely manner, and/or may present inaccurate or incomplete information to us, and risks relating to the value of collateral. In order to manage credit risk successfully, we must, among other things, maintain disciplined and prudent underwriting standards and ensure that our lenders follow those standards. The weakening of these standards for any reason, such as an attempt to attract riskier higher yielding loans, a lack of discipline or diligence by our employees in underwriting and monitoring loans, the inability of our employees to adequately adapt policies and procedures to changes in economic or any other conditions affecting borrowers and the quality of our loan portfolio, may result in loan defaults, foreclosures and additional charge-offs and may necessitate that we significantly increase our allowance, each of which could adversely affect our net income.

As of December 31, 2024,2025, commercial real estate mortgage loans comprised approximately 8.8%7.3% of our loan portfolio. Commercial real estate mortgage loans generally involve a greater degree of credit risk than one-to-four family residential real estate mortgage loans because they typically have larger balances and are more affected by adverse conditions in the economy. Because payments on loans secured by commercial real estate often depend upon the successful operation and management of the properties and the businesses which operate from within them, repayment of such loans may be affected by factors outside the borrower’s control, such as adverse conditions in the real estate market or the economy, including interest rate fluctuations, or changes in government regulations. In recent years, commercial real estate markets have been impacted by entrenched work-from-home expectations which could affect the long-term performance of some types of office properties within our commercial real estate portfolio. Accordingly, the federal banking regulatory agencies have expressed concerns about weaknesses in the current commercial real estate market. Failures in our risk management policies, procedures and controls could adversely affect our ability to manage this portfolio going forward and could result in an increased rate of delinquencies in, and increased losses from, this portfolio, which, accordingly, could have a material adverse effect on our business, financial condition and results of operations.

In 2019, the New York State legislature passed theState's Housing Stability and Tenant Protection Act of 2019, impactingimpacts about one million rent regulated apartment units. Among other things, the legislation: (i) curtails rent increases from material capital improvements and individual apartment improvements; (ii) all but eliminates the ability for apartments to exit rent regulation; (iii) does away with vacancy decontrol and high-income deregulation; and (iv) repealed the 20% vacancy bonus. The act generally limits a landlord’s ability to increase rents on rent-regulated apartments and makes it more difficult to convert rent-regulated apartments to market-rate apartments. In 2024, New York State passed legislation that effectively extends limits on rent hikes and “good cause” eviction requirements to many market-rate tenants in New York City and participating municipalities. As a result, the value of the collateral located in New York State securing our multi-family loans or the future net operating income of such properties could potentially become impaired. At December 31, 2024,2025, our total multifamily loan exposure in New York State is approximately $951.4$1.01 million,billion, of which approximately $697.3$821.5 million, or 73%,81%, represents our portfolio’s composition of rent stabilized and rent controlled apartments in the New York City multifamily market.

Our estimated allowance for credit losses and fair value adjustments with respect to loans acquired in our acquisitions may prove to be insufficient to absorb actual losses in our loan portfolio, which may adversely affect our business, financial condition and results of operations.

We rely on third parties forto provide internal and customer-facingcustomer‑facing services.services, The use of third partieswhich may poseexpose us to operational, compliance, and strategic risksrisks. to banks. The federalFederal banking regulators expect banks implementto maintain risk‑based controls to ensure that third parties perform their activities in compliancecomply with applicable laws and regulations. In June 2023, the federal banking agencies issued “Interagency Guidance on Third-PartyThird‑Party Relationships: Risk Management”, which requiresrequiring banks to “analyze the risks associated with each third-party relationship and to calibrate its risk management processesprocesses.”. In July 2024, regulators also issued a joint statement addressing banks’ arrangements with third parties to deliver deposit products and services, concurrent with a request for information on bank‑fintech arrangements, following concerns regarding customer funds deposited through non‑bank entities without adequate controls.

In decidingextending whethercredit, to extend credit or enterentering into other transactions, and in evaluating and monitoring our loan and lease portfolio on an ongoing basis,portfolio, we may rely on financial and other information furnishedprovided by orcustomers, on behalf of customerscounterparties, and counterparties,third parties, including financial statements, credit reportsreports, and other financial information. We may also rely on representations ofregarding those customers or counterparties or of other third parties, such as independent auditors, as to thetheir accuracy and completenesscompleteness. ofIf thatsuch information.information Reliance onis inaccurate, incomplete, fraudulentfraudulent, misleading, or misleadingnot financial statements, credit reports or other financial or business information, or the failure to receive such informationreceived on a timely basis, we could result inexperience credit losses, reputational damageharm, or other adverse effects that couldmay havematerially a material adverse effect onimpact our business, financial conditioncondition, or results of operations.

We are required to make contributionscontribute to the Consolidated Retirement Fund, a multi-employermulti‑employer defined benefit pension plan that coverscovering both our unionized and non-unionizednon‑unionized employees.employees, Ourand multi-employerour pension planrelated expense totaled $7.6$8.2 million in 2024.2025. Our future obligations may beincrease impacteddue by the funding status of the plan, the plan’s investment performance,to changes in the plan’s funded status, investment performance, participant demographics, the financial stabilitycondition of contributing employersemployers, or actuarial assumptions, and changes in actuarial assumptions. In addition, if a participating employer becomes insolvent and ceases to contribute to a multiemployer plan, the unfunded obligation of the plan will be borne by the remaining participating employers. Under current law, an employer that withdrawswithdrawal or partially withdraws from a multi-employer pension plan may incurpartial withdrawal liabilitycould to the plan. If,result in the future, we choose to withdraw from this multi-employer pension plan, we will likely need to record significant withdrawal liabilities,liability, which could negativelymaterially impactadversely affect our business, financial performancecondition inand theresults applicableof periods.operations.

There is an increasing concern over climate-relatedClimate‑related disasters onmay theadversely impactsaffect ofour business operations,business, asset quality, and earnings. Climate-relatedThese disastersrisks include acuteacute, risksevent‑driven whichweather are event-drivenevents such as increased instances of hurricanes, tropical storms, winter storms, freezes, wildfires, tornados, floods, and other large-scalelarge‑scale weathercatastrophes, catastrophes. Any of these eventswhich could disrupt the reliability of our operations and those of our customers,customers and third ‑party vendors and suppliers.vendors. Such events couldmay impair the value of our assets and those assetscollateral securing loansour andloans, mortgagescause volatility in our investment portfolio, and theynegatively could lead to fluctuations in the value of our investments. Such events could cause downturns inimpact economic and market conditionsconditions. generally,In which could negatively impactaddition, our customers and third party suppliers and vendors and which could have an adverse effect on our business and financial results. Our expenses couldmay increase due to changing consumer preference changespreferences and increasedevolving legislation and regulatory requirements suchrelated as those associated withto the transition to a low-carbonlow‑carbon economy. The potential costs,costs associated with climate‑related risks—including strategic planning, litigation due to increased regulatory scrutinyscrutiny, or negative public sentiment,litigation, technology expenditures,investments, and losses associated with climate disaster‑related disasters losses—are difficult to predict and could have a material adverse effect on our business, financial conditioncondition, and results of operation.operations.

Because PACE financing programs are typically enabled through state legislation and authorized at the local government level, variations between each state’s programs may expose us to increased compliance costs and risks. On December 17, 2024, the CFPB issued its final rule implementing Section 307 of the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act (the “EGRRCPA”) and amending Regulation Z to address how TILA applies to residential PACE transactions. The final rule amends Regulation Z’s definition of credit to include residential PACE financings, prescribes ability-to-repay requirements, and implements other amendments and exemptions to clarify how other rules in Regulation Z apply. The final rule becomesbecame effective on March 1, 2026. If we fail to comply with the final rules adopted by the CFPB, we may face reputational and litigation risks with respect to our PACE assessments.

Our trust and investment management business may be negatively impacted by changes in economic and market conditions and clients may seek legal remedies for investment performance.investment.

Our trust and investment management business mayis besensitive negatively impacted byto changes in general economic and market conditionsconditions, becauseas theits performance of this business is directly affected by conditions in the financial and securities markets.market Thevolatility. financialMarket markets and businesses operating in the securities industryconditions are highlyinfluenced volatile (meaning that performance results can vary greatly within short periods of time) and are directly affected by, among other factors,by domestic and foreign economic conditions andfactors, general trends in business and finance,financial trends, and by the threat, as well as the occurrence of global conflicts, all of which are beyond our control. WeDeclines cannot assure you that broadin market performance will be favorable in the future. Declines in the financial markets or a lack of sustained growth maycould result in a decline inreduce the performance of our investment management business and may adversely affect the market value and performance of theassets investmentunder securitiesmanagement, that we manage, which could lead to reductionsresulting in ourlower investment management fees, becauseasset they are based primarily on the market value of the securities we manage, and could lead some of our clients to reduce their assets under our managementoutflows, or seekincreased legalclient remediesdisputes. for investment performance. If anyAny of these eventsfactors occur,could materially and adversely affect the financial performance of our trust and investment management business could be materially and adversely affected.business.

Like most other companies with an investment management business, ourOur investment management contracts with our clients are typicallygenerally terminable by the clientclients without cause upon less than 30 days’ notice. As a result, even short ‑term declines in investment performance—whether due to market or economic conditions, the performance of theparticular securitiesinvestment westrategies manage,or which can result fromother factors outside our control such as adverse changes in market or economic conditions or the poor performance of some of the investments we have recommended to our clients, —could lead some of ourprompt clients to movereallocate assets under our management to other assetinvestment classes such as broad index fundsproducts or treasuryadvisers. securities, or to investment advisors that have investment product offerings or investment strategies different than ours. Therefore,Because our operating results are heavily dependentdepend on the financial performance of our investment portfolios and the investment strategies we employ in our investment management businesses and even short-term declines in the performance of the investment portfolios we managemanage, forany our clients, whatever the cause, could result in a declinereduction in assets under management andcould alead correspondingto decline inlower investment management fees,fees which wouldand adversely affect our results of operations.

Our operations rely on the secure processing, storage and transmission of confidential and other sensitive business and consumer information on our computer systems and networks and third-party providers. Under various federal and state laws, we are responsible for safeguarding such information. For example, our business is subject to joint federal bank agency rules, the GLBA, the NYDFS cybersecurity regulations, the CCPA, and the CPRA which, among other things: (i) impose certain limitations on our ability to share nonpublic personal information about our customers with nonaffiliated third parties; (ii) require that we provide certain disclosures to customers and others about our information collection, sharing and security practicespractices, as well as any use of automated decision making for financial or lending services, and afford customers the right to “opt out” of any information sharing by us with nonaffiliated third parties (with certain exceptions) and automated decision making; (iii) limit retention of customer data; (iv) require notification of certain data breaches be provided to consumers and, in some circumstances, regulators; (v) require notification of extortion payments and ransomware deployments; (vi) require cyber audits and enhanced governance of cyber risk, including risk assessments at least annually and whenever a change in the business or technology causes a material change to our cyber risk; and (vii) require that we develop, implement and maintain a written comprehensive information security program containing appropriate safeguards based on our size and complexity, the nature and scope of our activities, and the sensitivity of customer information we process, as well as plans for responding to data security breaches. Ensuring that our collection, use, transfer and storage of personal information complies with all applicable laws and regulations can increase our costs.

While we have not experienced any material breaches of information security,security breaches, such breaches may occur throughas a result of intentional or unintentionalinadvertent acts by thoseindividuals havingwith accessauthorized or gainingunauthorized access to our systems or to confidential information of us, our customers’customers, or counterparties’ confidential information,counterparties, including employees. InCybersecurity addition,risks increasesmay inincrease due to heightened criminal activity levels and sophistication, advancestechnological advances, newly discovered vulnerabilities (including in computer capabilities, new discoveries, vulnerabilities in third-partythird‑party technologies (includingsuch as browsers and operating systems), or other developments could result in a compromise or breach of the technology, processes and controls that we use to prevent fraudulent transactions and to protect data about us, our customers and underlying transactions, as well as the technology used by our customers to access our systems. Further, risk of cybersecurity incidents may increase with the political and economicgeopolitical instability or warfarewarfare, (including the Russia and Ukraine warconflict and reported cyber campaigns by Chinese hackers totargeting infiltrateU.S. computer networks associated with critical American infrastructure).infrastructure. We cannot be certainassure that the security measures we,we or processors,our haveprocessors in place to protect this sensitive datamaintain will be successfuleffective or sufficient to protect against all current andor emerging threatsthreats. designed to breach our systems or those of processors. Although we have developed, and continue to invest in, systems and processes that are designed to detect and prevent security breaches and cyber-attacks and regularly test our security, aA breach of our systems, or those of processors, could result in lossesfinancial to us or our customers;losses, loss of customers or business, reputational harm, business and/ordisruption, customers; damage to our reputation; the incurrence of additionalincreased expenses (including thenotification, cost of notification to consumers, credit monitoring and forensics, and feesremediation, and fines imposed by the card networks); disruption to our business; our inability to grow our online services or other businesses; additional, regulatory scrutiny or penalties;penalties, litigation, or ourother exposureadverse toconsequences, civil litigation and possible financial liability—any of which could have a material adverse effect on our business, financial conditioncondition, and results of operations.

In the event of a breakdown in our internal control systems, improper operation of systems or improper employee actions ,actions, including if confidential or proprietary information were to be mishandled, misused or lost, we could suffer financial loss, loss of customers and damage to our reputation, and face regulatory action or civil litigation. Any of these events could have a material adverse effect on our financial condition and results of operations. Insurance coverage may not be available for such losses, or where available, such losses may exceed insurance limits.

Our business is highly dependentdepends on the successfulreliable and uninterrupted functioningoperation of our information technology and telecommunications systems, third-partyincluding servicers'third‑party accounting systems and mobile and online banking platforms. We outsource many of our majorcritical systems, such asincluding data processing, loan servicing, item/payment processing systems,processing, and online banking platforms. The failureFailure of these systems, or the termination of arelated third-partythird‑party software licenselicenses or service agreementagreements, onor whichcapacity anyconstraints ofor theseinterruptions systemsat isthird‑party based,providers could interruptdisrupt our operations. BecauseSustained ouror informationrepeated technology and telecommunications systems interface with and depend on third-party systems, wedisruptions could experience service denials if demand for such services exceeds capacity or such third-party systems fail or experience interruptions. If sustained or repeated, a system failure or service denial could result in a deterioration ofimpair our ability to process newloans, andaccept renewal loans or to gather depositsdeposits, and provide customer serviceservice, and it could compromise our ability to operate effectively, damageharm our reputation, result in alost lossbusiness, ofincrease businessregulatory scrutiny, and subjectexpose us to additional regulatory scrutiny and possible financial liability, any of which could havematerially aadversely material adverse effect onaffect our financial condition and results of operations. In addition, failurethird‑party of third parties to complynoncompliance with applicable laws and regulations, or fraud, misconduct, or material errors on the part ofby our employees or employeesthose of anyour ofservice these third partiesproviders, could disrupt our operations or adversely affect our reputation.

We expect that new technologies and business processes applicable to the banking industry will continue to emerge, and these new technologies and business processes may be better than those we currently use. Because the pace of technological change is high and our industry is intensely competitive, we may not be able to sustain our investment in new technology as critical systems and applications become obsolete or as better ones become available. A failure to maintain current technology and business processes could cause disruptions in our operations or cause our products and services to be less competitive, all of which could have a material adverse effect on our business, financial condition or results of operations. We expect regulatory risk and compliance costs from AI implementation to increase. Federal and state regulators have intensified their oversight of AI in financial services. Under the Federal Reserve’s November 2025 Supervisory Operating Principles, examiners now prioritize the assessment of "material financial risks" stemming from AI, focusing on the transparency and explainability of models used for capital, liquidity, and credit decisions.

Our access to deposits may also be affected by the liquidity needs of our depositors, particularly in an adverse interest rate or economic environment where they may be compelled to withdraw deposits. As a part of our liquidity management, we must ensure we can respond effectively to potential volatility in our customers’ deposit balances. Our total on-balance sheet deposits totaled $7.18$7.95 billion as of December 31, 2024.2025. For instance, our on-balance sheet deposits from political campaigns, PACs,Political Action Committees ("PACs"), and state and national party committee clients totaled $969.6$1.73 million,billion, or 14%19% of total on-balance sheet deposits as of December 31, 20242025. and decreasedTheir their deposit balances decreased significantly after the last election campaign, resulting in short-term volatility in their deposit balances held with us through election cycles. Additionally, our on-balance sheet deposits from labor unions totaled $1.99$2.05 billion, or 28%23% of total on-balance sheet deposits as of December 31, 2024.2025. While historically we have been able to replace deposit outflows and borrowings as necessary, we might not be able to replace such funds in the future, especially if a large number of our depositors or those depositors with a high concentration of deposits sought to withdraw their accounts. We could encounter difficulty meeting a significant deposit outflow which could negatively impact our profitability or reputation. Any long-term decline in deposit funding would adversely affect our liquidity, but we believe our funding sources are adequate to meet any significant unanticipated deposit withdrawal. A failure to maintain adequate liquidity could materially and adversely affect our business, results of operations or financial condition.

We may beare subject to more stringent capital requirements in the future.requirements.

In particular, the capital requirements applicable to us under the Basel III rules, which became fully phased-in on January 1, 2019 required us to satisfy additional, more stringent, capital adequacy standards. A failure to meet minimum capital requirements could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on our financial condition and results of operations. In addition, these requirements could have a negative impact on our ability to lend, grow deposit balances, make acquisitions or make capital distributions in the form of dividends or share repurchases. Higher capital levels could also lower our return on equity. In July 2023, federal agencies jointly proposed revisions to the Basel III rules to implement the Basel Committee’s 2017 standards and make other changes. Subsequently, federal banking regulators have signaled that they expect to issue a revised proposal as early as 2026, thought contents of the potential revised proposal are not yet known.

As a fund manager, we from time-to-time engage in stockholder activism, pressing issuers on a range of corporate governance topics. This activismengagement has caused and could cause increased scrutiny over our own corporate governance activities. Any failure, or perceived failure, in our own corporate governance practices could damage our reputation adversely affecting our business, results of operations or financial condition.

In October 2024, the CFPB finalized the Requiredrequired rule making on Personal Financial Data Rights rule to promote “open and decentralized banking” by requiring covered institutions to allow customers to authorize the transfer of certain customer information to other financial institutions. This rule enables greater competition among banks and non-banks for consumer market share, which could have a material adverse effect on our business, financial condition or results of operations. However, the rule's rollout is currently delayed by a "stop work" order issued by the CFPB in early 2025.

We operate in an extensively regulated industry and we are subject to examination, supervision, and comprehensive regulation by various federal and state agencies. The Company is subject to Federal Reserve regulations, and the Bank is subject to regulation, supervision and examination by the FDIC and the NYDFS. Further, potential implementation by the current administration of a regulatory reform agenda may be significantly different from that of the prior administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies and our ability to respond to those changes. Our compliance with banking regulations is costly and restricts some of our activities,other activities besides account closures, including payment of dividends, mergers and acquisitions, investments, loans and interest rates and locations of offices. We are also subject to capitalization guidelines established by our regulators, which require us to maintain adequate capital to support our business. If, as a result of an exam, a banking agency were to determine that the financial condition, capital adequacy, asset quality, asset concentration, earnings prospects, management, liquidity sensitivity to market risk or other aspects of any of our operations has become unsatisfactory, or that we or our management are in violation of any law or regulation, the banking agency could take a number of different remedial actions as it deems appropriate.

The Community Reinvestment Act (“CRA”), the ECOA and the FHA impose nondiscriminatory lending requirements on financial institutions. The FDIC, the NYDFS, the Department of Justice, and other federal and state agencies are responsible for enforcing these laws and regulations. In October 2023, the FDIC, the FRB and the OCC jointly adopted final regulations for modernizing and implementing the CRA, which became effective on April 1, 2024, with a multi-year phase-in. These regulations create a complex regulatory scheme that will impact how the Bank’s compliance with the CRA is evaluated and that will increase its compliance obligations, unless the regulations are successfully challenged in court. Private parties may also have the ability to challenge an institution’s performance under fair lending laws in private class action litigation. A successful challenge to our performance under the fair lending laws and regulations could adversely impact our rating under the CRA and result in a wide variety of sanctions, including the required payment of damages and civil money penalties, injunctive relief, imposition of restrictions on merger and acquisitions and expansion activity, which could negatively impact our reputation, business, financial condition and results of operations.

We offer a complete suite of commercial and retail banking, investment management and trust and custody services. Our commercial banking and trust businesses are national in scope and we also offer a full range of products and services to both commercial and retail customers through our three branch offices across New York City, one branch office in Washington, D.C., one branch office in San Francisco, one commercial office in Boston and our digital banking platform. Our corporate divisions include Commercial Banking, Trust and Investment Management and Consumer Banking. Product line includes residential mortgage loans,loans C&I loans, CRE loans, multifamily mortgages, consumer loans (predominantly residential solar) and a variety of commercial and consumer deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts and certificates of deposit. We also offer online banking and bill payment services, online cash management, safe deposit box rentals, debit card and ATM card services and the availability of a nationwide network of ATMs for our customers.

On January 1, 2023, we adopted the Current Expected Credit Losses (“CECL”) Standard, which requires that loans held for investment be accounted for under the current expected credit losses model. The allowance for credit losses is established and maintained through a provision for credit losses based on expected losses inherent in our loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis, and additions to the allowance are charged to expense and subsequent changes (favorable and unfavorable) in expected credit losses are recognized immediately in net income as a credit loss expense or a reversal of credit loss expense. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed.confirmed, Expectedand expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of inherently uncertain matters.

For segments that rely on a peer group to develop baseline loss rates, statistical regression is utilized to relate historical macro-economic variables to historical credit loss experience of a peer group of banks. These models are then utilized to forecast future expected credit losses based on expected future behavior of the same macro-economic variables. Adjustments to the quantitative results for both DCF and WARM models are made using qualitative factors. These factors include: (1) borrower'sborrowers' financial condition; (2) borrower'sborrowers' ability to pay; (3) nature and volume of financial assets; (4) value of the underlying collateral; (5) lending policies and procedures; (6) quality of the loan review system; (7) the experience, ability, and depth of staff; (8) regulatory and legal environment; (9) changes in market conditions; and (10) changes in economic conditions. Factors are weighted based on level of impact and assigned a risk rating that determine the amount of required qualitative reserves. The level of impact and risk ratings are evaluated each quarter.

For loans that do not share risk characteristics, the Company evaluates these loans on an individual basis based on various factors. Factors that may be considered are borrowerborrowers delinquency trends and nonaccrual status, probability of foreclosure or note sale, changes in the borrower’sborrowers' circumstances or cash collections, borrower’sborrowers' industry, or other facts and circumstances of the loan or collateral. The expected credit loss is measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For collateral dependent loans, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, less estimated costs to sell.

Net income for the year ended December 31, 20242025 was $106.4$104.4 million, or $3.44$3.41 per average diluted share, compared to $88.0$106.4 million, or $2.86$3.44 per average diluted share, for the same period in 2023.2024. The $18.4$2.0 million increasedecrease was primarily due toan increase in non-interest expense of $12.4 million, an increase in provision for credit losses of $6.0 million, and a decrease of non-interest income of $2.3 million, partially offset by net interest income which increased by $21.1$15.4 million,million and a decrease in provision for credit losses of $4.4 million, and an increase of non-interest income of $3.9 million, offset by an increase in non-interest expense of $8.6 million, and an increase in income tax expense of $2.4$3.5 million.

Net interest income, representing interest income less interest expense, is a significant contributor to our revenues and earnings. We generate interest income from interest, dividends and prepayment fees on interest-earning assets, including loans, investment securities and other short-term investments. We incur interest expense from interest paid on interest-bearing liabilities, including interest-bearing deposits, Federal Home Loan Bank of New York ("FHLBNY") advances, subordinated debt, and other borrowings. To evaluate net interest income, we measure and monitor (i) yields on our loans and other interest-earning assets, (ii) the costs of our deposits and other funding sources, (iii) our net interest spread and (iv) our net interest margin. Net interest spread is equal to the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is equal to the annualized net interest income divided by average net interest-earning assets. Average balances were derived from average daily balances. Because non-interest-bearing sources of funds, such as non-interest-bearing deposits and stockholders’ equity, also fund interest-earning assets, net interest margin includes the benefit of these non-interest-bearing sources.

(2) Amounts are net of deferred origination fees and costs. With the adoption of the current expected credit losses ("CECL") standard on January 1, 2023, the average balance of the allowance for credit losses on loans was reclassified for all presented periods to other assets to allow for comparability.

Net interest income was $282.4$297.8 million for the year ended December 31, 2024,2025, compared to $261.3$282.4 million for the same period in 2023.2024. The $21.1$15.4 million, or 8.1%5.4% increase was primarily attributable to an increase in yields earned on securities and loans. These impacts are partially offset by an increase in theinterest expense and average balances of interest-bearing deposits and an increase in the cost of funds.deposits.

Net interest spread was 2.14%2.48% for the year ended December 31, 2024,2025, compared to 2.38%2.14% for the same period in 2023,2024, aan decreaseincrease of 2434 basis points. Our net interest margin was 3.51%3.59% for the year ended December 31, 2024,2025, an increase of 108 basis points from 3.41%3.51% in the same period in 2023.2024. This was largely due to the continued loan growth, as well as increase in yields earned on loans and securities outpacing the increase in the cost of funds.deposits.

The yield on average earning assets was 4.99%5.09% for the year ended December 31, 2024,2025, compared to 4.67%4.99% for the same period in 2023,2024, an increase of 3210 basis points. This increase was driven primarily by the rising rate environment and an increase in average loan balances.balances as well as loan yields.

The average rate on interest-bearing liabilities was 2.85%2.61% for the year ended December 31, 2024,2025, ancompared increaseto of2.85% 56 basis points fromfor the same period in 2023,2024, whicha decrease of 24 basis points. This decrease was driven primarily by a decrease in market rates paid on deposits due to theseveral rising rate environment, growthcuts in interest-bearing deposits as customers moved into reciprocal products, as well as the utilizationfederal funds rate, and a decrease in brokered certificate of brokereddeposits, CDspartially offset by an increase in average balance of deposits, particularly in savings, NOW, and othermoney borrowings.market deposits. Non-interest-bearing deposits represented 46%39% of average deposits for the year ended December 31, 2024,2025, compared to 44%46% for the year ended December 31, 2023.2024.

Provision for credit losses totaled an expense of $10.3$16.3 million for the year ended December 31, 2024,2025, compared to an expense of $14.7$10.3 million for the same period in 2023.2024. For the year ended December 31, 2025, the provision for credit losses on loans totaled $17.6 million, the provision for credit losses on securities totaled $39.6 thousand, and the provision for credit losses on off-balance sheet credit exposures was a release of reserves of $1.4 million. For the year ended December 31, 2024, the provision for credit losses on loans totaled $10.4 million, the provision for credit losses on securities totaled $18.8 thousand, and the provision for credit losses on off-balance sheet credit exposures was a release of reserves of $50.0 thousand. For the year ended December 31, 2023, the provision for credit losses on loans totaled $13.5 million, the provision for credit losses on securities totaled $1.2 million, and the provision for credit losses on off-balance sheet credit exposures was a release of reserves of $0.1 million. Overall, the provision expense on loans was primarily driven by portfolio growth, charge-offs on consumer solar loans,and business banking portfolios, a charge-off for one syndicated commercial and certainindustrial individualloan in connection with a note sale, a charge-off for one multi-family loan in connection with a transfer to held-for-sale, and increases in specific reserves, partially offset by improvementsrelease inof macro-economic forecasts usedreserves in the CECLone-to-four modelfamily residential real estate and releasesconsumer solar loan portfolios as a result of reservesthe dueCompany's toportfolio lowerrunoff unfunded exposures.strategy.

Non-interest income was $33.2$30.9 million for the year ended December 31, 2024,2025, compared to $29.3$33.2 million for the same period in 2023,2024, ana increasedecrease of $3.9$2.3 million. The increasedecrease of $3.9$2.3 million was primarily due to a $21.2$14.8 million increasedecrease in service charges on deposit accounts,accounts whichprimarily wasdue partiallyto decreases in IntraFi Insured Cash Sweep network ("ICS") One-Way Sell income, offset by ana $8.2$6.3 million increasedecrease in losses on the sale of securities, and a $5.5 million decrease in losses on sale of loans and change in fair value on loans held-for-sale, a $5.7 million decrease in income from equity investments, a $2.3 million increase in losses on the sale of securities as part of strategic sales in order to reinvest in higher yielding securities, and a $0.6 million decrease in other income.held-for-sale.

Service charges on deposit accounts includes service charges income generated from our retail deposit business.business, Thewhich increase in charges during the year ended December 31, 2024 was primarily due to utilization ofincludes a custodial deposit transference structure through the IntraFi Insured Cash Sweep network ("ICS") for certain deposit programs whereby we, acting as custodian of account holder funds, place a portion of such account holder funds that are not needed to support near term settlement at one or more third-party banks insured by the FDIC (each, a "Program Bank"). Accounts opened at Program Banks are established in our name as custodian, for the benefit of our account holders. We remain the issuer of all accounts under the applicable account holder agreements and have sole custodial control and transaction authority over the accounts opened at Program Banks. We maintain the records of each account holder's deposits maintained at Program Banks. In return for record keeping services at Program Banks, the Company receives a servicing charge. For the fiscal year ended December 31, 2024,2025, the Company recognized $17.2$2.4 million in servicing charge income attributable to our off-balance sheet deposit strategy, compared to $149$17.2 thousandmillion for the year ended December 31, 2023, and $17 thousand for the year ended December 31, 2022.2024.

Trust Department fees consist of fees we receive in connection with our investment advisory and custodial management services of investment accounts. Our Trust Department fees were $15.2$16.2 million in the year ended December 31, 2024,2025, an increase of $11.0$1.0 thousand,million, or 0.1%,6.6%, from same period in 2023.2024.

Equity method investments income consists of income from solar tax equity investments. DueFor toequity method investments not compliant with ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323) - Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. the recognition of tax credits upon initial investment, which is considered income from these investmentsinvestments, is volatile before achieving steady state. In the early stages of the investment, accelerated depreciation of the value of the investment creates net losses, after which steady state income is achieved, generally within four quarters of the initial investment. Equity method investments loss was $0.8$1.7 million in the year ended December 31, 2024,2025, compared to ana incomeloss of $4.9$0.8 million for the same period in 2023.2024. During the year ended December 31, 2025, the Bank invested in a solar tax equity investment that was compliant with ASU 2023-02. The tax credits from this equity investment are recognized as benefits in the tax provision line.

Non-interest expense for the year ended December 31, 20242025 was $159.8$172.2 million, an increase of $8.6$12.5 million from $151.2$159.8 million for the year ended December 31, 2023.2024. The increase was primarily due to an $8.0$4.8 million increase in compensation expense due to increased headcount, corporate incentive payments, and temporary personnel costs, and a $2.1$4.3 million increase in dataprofessional processingfees, and a $4.3 million increase in technology expense, offset by a $0.5$1.4 million decrease in advertising and promotion expense, a $0.5 million decrease in occupancy and depreciation expense, a $0.3 million decrease in office maintenance and depreciation expense, and a $0.2 million decrease in amortization of intangible assets.expense.

We had a provisionProvision for income tax expense ofwas $39.2$35.7 million for the year ended December 31, 2024,2025, compared to $36.8$39.2 million for the same period in 2023.2024. Our effective tax rate was 26.9%25.5% for the year ended December 31, 2024,2025, compared to 29.5%26.9% for the same period in 2023.2024. The decrease in the effective tax rate was primarily driven by the recognition of a $3.3tax millioncredit adjustmentfrom a tax equity investment in compliance with ASU 2023-02 during the year ended December 31, 2023 related to a state and city tax examination regarding the inventory of prior net operating losses.2025.

Total assets were $8.87 billion at December 31, 2025, compared to $8.26 billion at December 31, 2024, compared to $7.97 billion at December 31, 2023.2024. Notable changes within individual balance sheet line items include a $267.2$768.6 million increase in total deposits, a $286.8 million increase in loans receivable, a $168.6$230.5 million increase in totalcash deposits,and equivalents, a $35.4$122.3 million increase in investment securities, and a $246.3$24.9 million increase in FHLBresell advances,agreements, offset byand a $230.0$244.9 million decrease in other borrowings, a $29.8 million decrease in cash and equivalents and a $26.3 million decrease in resell agreements.borrowings.

We seek to minimize credit risk in our securities portfolio through diversification, concentration limits, restrictions on high risk investments (such as subordinated positions), comprehensive pre-purchase analysis and stress testing, ongoing monitoring and by investing a significant portion of our securities portfolio in U.S. Government sponsored entity (“GSE”) obligations. GSEs include the Federal Home Loan Mortgage Corporation (“FHLMC”), the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) and the Small Business Administration (“SBA”). GNMA is a wholly-owned U.S. Government corporation whereas FHLMC and FNMA are private. Mortgage-related securities may include mortgage pass-through certificates, participation certificates and collateralized mortgage obligations (“CMOs”). We invest in non-GSE securities, including property assessed clean energy,energy or PACE,("PACE") assessments, in order to generate higher returns, improve portfolio diversification and reduce interest rate and prepayment risk. With the exception of small legacy CRA investments, Trust Preferred securities, and certain corporate bonds, all of our non-GSE securities are senior positions that are the top of the capital structure.

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities totaled $29.8 million at December 31, 2025 and $27.0 million at December 31, 2024 and $22.5 million at December 31, 2023,2024, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status. The allowance for credit losses for held-to-maturity securities at December 31, 20242025 was $0.7 million compared to $0.7 million at December 31, 2023.2024. The provision for credit losses for held-to-maturity securities was aan recoveryexpense of $18.8$39.6 thousand for the year December 31, 20242025 compared to ana expenserecovery of $79.0$18.8 thousand at December 31, 2023.2024.

Accrued interest receivable on available for sale debt securities totaled $11.8 million at December 31, 2025, and $11.7 million at December 31, 20242024, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.

The following table showshows contractual maturities and yields for the available for sale and held-to-maturity securities portfolios:

Lending-related income is an important component of our net interest income and is a main driver of our results of operations. Total loans, net of deferred origination fees and allowance for credit losses, were $4.90 billion as of December 31, 2025 compared to $4.61 billion as of December 31, 2024 compared to $4.35 billion as of December 31, 2023.2024. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending. Within our retail loan portfolio, our primary focus has been on residential one-to-four family (1st lien) mortgages and residential solar loans.

Commercial & Industrial ("C&I.I"). Our C&I loans are generally made to small and medium-sized manufacturers and wholesale, retail and service-based businesses to provide either working capital or to finance major capital expenditures. In addition, our C&I portfolio includes commercial solar financings; for many of these we are the sole lender, while for some others we are a participant in a syndicated credit facility led by another institution. The primary source of repayment for C&I loans is generally operating cash flows of the business or project. We also seek to minimize risks related to these loans by requiring such loans to be collateralized by various business assets (including inventory, equipment, accounts receivable, and the assignment of contracts that generate cash flow). The average size of our C&I loans at December 31, 20242025 by exposure was $8.6$7.9 million with a median size of $0.8$0.6 million. We have shifted our lending strategy to focus on developing full customer relationships including deposits, cash management, and lending. The businesses that we focus on are generally mission aligned with our core values, including organic and natural products, sustainable companies, clean energy, nonprofits, and B Corporations TM.

CRE. Our CRE loans are used to purchase or refinance office buildings, owner-occupied office buildings, retail centers, industrial facilities,facilities and mixed-used buildings,buildings. andCRE educationloans centers.have 64% of their exposure in New York City. Our CRE loans totaledhave $411.4been millionunderwritten atunder Decemberstringent 31,guidelines 2024,on whichloan-to-value comprisedand 8.8%debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average LTV, based on underwriting appraisal value, of our total loan portfolio. During the year ended December 31, 2024, the CRE loanloans portfoliois increasedapproximately by 16.4% from $353.4 million at December 31, 2023.45%.

Residential real estate lending. Our residential one-to-four family mortgage loans are residential mortgages that are primarily secured by single-family homes, which can be owner occupied or investor owned. These loans arewere either originated by our loan officers or purchased from other originators with the servicing retained by such originators. Our residential real estate lending portfolio is 99% first mortgage loans and 1% second mortgage loans. As of December 31, 2024,2025, approximately 80% of our residential one-to-four family mortgage loans were either originated by our loan officers or were acquired in our acquisition of New Resource Bank, and approximately 20% were purchased or acquired. Our residential real estate lending loans totaled $1.31$1.24 billion at December 31, 2024,2025, which comprised 76.7%77.8% of our retail loan portfolio and 28.1%25.0% of our total loan portfolio. During the year ended December 31, 2024,2025, our residential real estate lending loans decreased by 7.9%5.8% from $1.43$1.31 billion at December 31, 2023.2024. Beginning in February 2026, in order to maintain strong client relationships, the Company entered into a marketing services agreement with Embrace Home Loans to refer its customers for residential loans services, while advancing its broader strategic focus.

Consumer solar. Our consumer solar portfolio is comprised of purchased residential solar loans, secured by Uniform Commercial Code ("UCC") financing statements. Our consumer solar portfolio is fully acquired and is in run-off mode. Our consumer solar loans totaled $365.5$325.2 million at December 31, 2024,2025, which comprised 7.8%6.6% of our total loan portfolio, compared to $408.3$365.5 million, or 9.3%,7.8%, of our total loan portfolio at December 31, 2023.2024.

The following tables presents, by loan type, the changes in the allowance for the periods indicated. With the adoption of the CECL standard, the allowance for credit losses for the year ended December 31, 2025, December 31, 2024 and December 31, 2023 is calculated under the expected credit losses model. ForWe the year ended December 31, 2022,maintain the allowance onat loansa presentedlevel we believe is sufficient to absorb current expected credit losses in our loan portfolio. The following table presents, by loan type, the changes in the allowance for loan losses using the incurredperiods loss model.indicated.

The following table presents the allocation of the allowance for credit losses on securities and the percentage of the total amount of held-to-maturity securities in each security category listed. The table is only applicable for the years ended December 31, 2024 and December 31, 2023 due to CECL adoptionlisted as of Januarydates 1, 2023indicated:

The following table sets forth information about our nonperforming assets as of December 31, 2024,December2025, December 31, 20232024 and December 31, 2022 2023:

Potential problem loans are loans which management has doubts as to the ability of the borrowers to comply with the present loan repayment terms. Potential problem loans are performing loans and include our special mention and substandard-accruing commercial loans and/or loans 30-89 days past due. Potential problem loans are not included in the nonperforming assets table above and totaled $99.8 million, or 1.1% of total assets, at December 31, 2025, and $109.4 million, or 1.3% of total assets, at December 31, 2024, as follows: $79.9 million are commercial loans currently in workout that management expects will be rehabilitated; $6.2 million are residential real estate loans at 30-89 days delinquent and $5.6 million are consumer loans at 30-89 days delinquent.2024.

As of December 31, 2024,2025, we entered into $23.7$48.7 million in short term investments of resell agreements backed by residentialgovernment mortgageguaranteed loans and other loans, with a weighted interest rate of 6.91%.6.00%. As of December 31, 2023,2024, we entered into $50.0$23.7 million of short term investments of resell agreements backed by residential first-lien mortgage loans, with a weighted interest rate of 6.34%.6.91%.

We had a deferred tax asset,assets, net of deferred tax liabilities, of $30.8 million at December 31, 2025 and $42.4 million at December 31, 2024 and $56.6 million at December 31, 2023.2024. As of December 31, 2024,2025, our deferred tax assets were fully realizable with no valuation allowance held against the balance. Our management concluded that it was more-likely-than-not that the entire amount will be realized.

We gather deposits through each of our three branch locations across New York City, our one branch in Washington, D.C., our one branch in San FranciscoFrancisco, and through the efforts of our commercial banking team including our Boston group which focuses nationally on business growth. Through our branch network, online, mobile and direct banking channels, we offer a variety of deposit products including demand deposit accounts, money market deposits, NOW accounts, savings and certificates of deposit, ICS accounts, Certificate of Deposit Account Registry Service accounts, and brokered certificates of deposit. We bank politically active customers, such as campaigns, PACs,Political Action Committee ("PACs"), and state and national party committees, which we refer to as political deposits. These deposits exhibit seasonality based on election cycles. As of December 31, 20242025 and December 31, 2023,2024, we had approximately $969.6$1.73 millionbillion and $1.19$969.6 billion,million, respectively, in on-balance sheet and off-balance sheet political deposits which are primarily in demand deposits.

The following is a discussion of our consolidated financial condition as of MarchJune 31,30, 2026, as compared to December 31, 2025, and our results of operations for the three and six month periods ended MarchJune 31,30, 2026 and MarchJune 31,30, 2025. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. This discussion and analysis is best read in conjunction with our unaudited consolidated financial statements and related notes as well as the financial and statistical data appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”), filed with the Securities and Exchange Commission on March 6,5, 2026. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate results of operations for any future periods.

The Company was formed on August 25, 2020 to serve as the holding company for the Bank, effective March 1, 2021 when the Company acquired the common stock of the Bank. The Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Although we are no longer majority union-owned, the Amalgamated Clothing Workers of America’s successor, Workers United and its affiliates, affiliates of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 38% of our equity as of MarchJune 31,30, 2026. As of MarchJune 31,30, 2026, our total assets were $9.17$9.41 billion, our total loans, net of allowance for credit losses were $4.97$5.08 billion, our total deposits were $8.18$8.46 billion, and our stockholders' equity was $807.6$835.0 million. As of MarchJune 31,30, 2026, our trust business held $37.69$39.41 billion in assets under custody and $16.00$17.24 billion in assets under management.

Net income for the three months ended MarchJune 31,30, 2026 was $25.2$34.8 million, or $0.84$1.15 per diluted share, compared to $25.0$26.0 million, or $0.81$0.84 per diluted share, for the three months ended MarchJune 31,30, 2025. The $0.2$8.8 million increase was primarily due to an increase in interest and dividend income of $8.6$13.1 million, an increase in service charges on deposit accounts of $3.8$3.0 million,million and ana increase in equity investment incomedecrease of $3.1losses on sale of securities and other assets of $1.0 million, partially offset by an increase in provision for credit losses of $12.9 million and an increase in compensation and employee benefits of $3.9 million, an increase in income tax expense of $2.4 million, an increase in technology expense of $1.9 million and a decrease in other income of $0.1 million.

(2) Includes prepayment penalty income in 1Q20262Q2026 and 1Q20252Q2025 of $49$526 thousand and $0$200 thousand, respectively.

Net interest income was $80.2$86.1 million for the threesecond monthsquarter ended March 31,of 2026, compared to $70.6$72.9 million for the threesecond monthsquarter ended March 31,of 2025. The $9.6$13.2 million increase, or 13.6%18.1% increase from the threesecond monthsquarter ended March 31,of 2025 was primarily attributable to higher yields and average balances on interest-earning assets, and lower costs on interest bearing liabilities, partially offset by higher average balances on interest-bearing liabilities.

Net interest spread was 2.63%2.69% for the three months ended MarchJune 31,30, 2026, compared to 2.41%2.44% for the three months ended MarchJune 31,30, 2025, an increase of 2225 basis points. Our net interest margin was 3.75%3.78% for the three months ended MarchJune 31,30, 2026, an increase of 2023 basis points from 3.55% from the three months ended MarchJune 31,30, 2025. This was largely due to increases in yields and average balances on interest-bearing assetassets and a decrease in total cost of funds.

The yield on average earning assets was 5.11%5.14% for the three months ended MarchJune 31,30, 2026, compared to 5.06%5.07% for the same period in 2025, an increase of 57 basis points. This increase was driven primarily by an increase in averagehigher balancesyielding ofassets such as loans and securities, as well as an increase in loan yields.securities.

The average rate on interest-bearing liabilities was 2.48%2.45% for the three months ended MarchJune 31,30, 2026, a decrease of 1718 basis points from the three months ended MarchJune 31,30, 2025, which was primarily due to a decrease in interest rates which leads to lower interest expense paid for deposits, offset by an increase in average balances of interest-bearing deposits. Non-interest-bearing deposits represented 40.7%40.2% of average deposits for the three months ended MarchJune 31,30, 2026, compared to 39.3%38.2% for the three months ended MarchJune 31,30, 2025.

Provision for credit losses was an expense of $13.5$4.4 million for the three months ended MarchJune 31,30, 2026 compared to an expense of $0.6$4.9 million for the three months ended MarchJune 31,30, 2025. Overall, the increase inThe provision for credit losses during the threecurrent months ended March 31, 2025quarter was primarily driven by a $9.2 million increase in specific reserves established or increased on $78.0 million of multifamily loans to a single-borrower after the borrower indicated an expected default. The remaining provision was attributable to charge-offs on our consumer solar and commercial and industrial portfolios, and additional specificrequired reserves on nonperformingthe loans.consumer solar portfolio from the ACL model. This was partially offset by reserve releases due to declining balances in the consumer solar loan portfolio as a result of the Company's portfolio runoff strategy, and lower required reserves on C&I loans.strategy.

Non-interest income was $13.3$12.3 million for the three months ended MarchJune 31,30, 2026, compared to $6.4$8.0 million for the three months ended MarchJune 31,30, 2025. The increase of $6.9$4.3 million for the three months ended MarchJune 31,30, 2026 compared to the three months ended MarchJune 31,30, 2025 was primarily due to a $3.8$3.0 million increase in service charges on deposit accounts primarily due to increases in IntraFi Insured Cash Sweep network ("ICS") One-Way Sell income, a $3.1$1.0 million decrease in losses on sale of securities and other assets, and a $0.4 million increase in equitytrust investmentdepartment fees income, andoffset by a $0.7$0.1 million increasedecrease in bank-owned life insurance income, partially offset by a $0.8 million decrease in gain on sale of loans and changes in fair value on loans held-for-sale.income.

Non-interest expense for the three months ended MarchJune 31,30, 2026 was $45.9$47.3 million, an increase of $4.2$6.7 million from $41.7$40.6 million for the three months ended MarchJune 31,30, 2025. The increase was driven by a $2.4$3.9 million increase in compensation and benefits expense,expense consisting of accruals related to increased performance, as well as for the additional payroll period in 2026, a $1.0$1.9 million increase in technology expense,expense arelated $0.9to implementation of key modernization projects, $0.6 million increase in occupancyother expenses, and depreciation expense, a $0.6$0.5 million increase in advertising and promotion expense, and a $0.5 million increase in other expenses, partially offset by $1.0$0.3 million decrease in professional fees.

We had a provision for income tax expense of $8.8$11.9 million for the three months ended MarchJune 31,30, 2026, compared to $9.7$9.5 million for the three months ended MarchJune 31,30, 2025. Our effective tax rate for the three months ended MarchJune 31,30, 2026 was 26.0%25.4% compared to 28.0%26.7% for the three months ended MarchJune 31,30, 2025. The decrease in the effective tax rate for three months ended MarchJune 31,30, 2026 is primarily driven by additionala discreterecognition of a $0.5 million solar tax liabilitiescredit purchased in the three months ended March 31, 2025 related to a city and state tax examination, which was resolved in 2025.quarter.

Our total assets were $9.17$9.41 billion at MarchJune 31,30, 2026, compared to $8.87 billion at December 31, 2025. Notable changes within individual balance sheet line items include a $353.5$509.2 million increase in deposits, a $474.8 million increase in securities, a $228.9 million increase in deposits, a $111.5 million decrease in cash, a $65.5$180.4 million increase in net loans receivable, a $123.4 million decrease in cash, and a $17.5$10.6 million increase in resell agreements.

Our investment securities portfolio consists of securities classified as available for sale and held-to-maturity. There were no trading securities in our investment portfolio at MarchJune 31,30, 2026 or at December 31, 2025. All available for sale securities are carried at fair value and may be used for liquidity purposes should management consider it to be in our best interest.

Our held-to-maturity securities portfolio primarily consistedconsists of PACE assessments, tax-exempt municipal securities, GSE commercial and residential certificates and other debt. We carry these securities at amortized cost. We had held-to-maturity securities of $1.55$1.57 billion at MarchJune 31,30, 2026, and $1.55 billion at December 31, 2025.

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities totaled $18.5$23.7 million at MarchJune 31,30, 2026 and $29.8 million at December 31, 2025, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status. The allowance for credit losses for held-to-maturity securities at MarchJune 31,30, 2026 was $0.7$0.8 million compared to $0.7 million at December 31, 2025. The provision for credit losses for held-to-maturity securities was an expense of $5.0$38.0 thousand for the three months ended MarchJune 31,30, 2026 and $43.0 thousand for the six months ended June 30, 2026, compared to aan recoveryexpense of $3.0 thousand for the three months ended MarchJune 31,30, 2025 and an immaterial recovery for the six months June 30, 2025.

Accrued interest receivable on available-for-sale debt securities totaled $13.7$15.9 million at MarchJune 31,30, 2026 and $11.8 million at December 31, 2025, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.

Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and Property Assessed Clean Energy ("PACE") assessments. All non-agency securities, composed of non-agency commercial mortgage-backed securities, collateralized loan obligations, non-agency mortgage-backed securities, and asset-backed securities, are senior tranche and approximately 87.1%89.0% carry AAA credit ratings and 12.9%11.0% carry A credit ratings or higher. As of March 31, 2026, our securities portfolio has a weighted average yield of 4.88% and an estimated weighted average life of 5.4 years. Approximately 58.1% of this portfolio is classified as “available for sale.” In total, our securities portfolio including FHLBNY stock represented 41.2% of total interest-earning assets as of March 31, 2026.

Lending-related income is the most important component of our net interest income and is the main driver of our results of operations. Total loans, net of deferred origination fees and costs, and allowance for credit losses, were $4.97$5.08 billion as of MarchJune 31,30, 2026 compared to $4.90 billion as of December 31, 2025. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending. We intend to focus any organic growth in our loan portfolio on these lending areas as part of our strategic plan.

Our commercial loan portfolio comprised 68.8%70.3% of our total loan portfolio at MarchJune 31,30, 2026 and 67.9% of our total loan portfolio at December 31, 2025. The major categories of our commercial loan portfolio are discussed below:

C&I. Our C&I loans are generally made to small and medium-sized manufacturers and wholesale, retail and service-based businesses to provide either working capital or to finance major capital expenditures. In addition, our C&I portfolio includes commercial solar financings; for many of these we are the sole lender, while for some others we are either the lead bank or are a participant in a syndicated credit facility led by another institution. The primary source of repayment for C&I loans is generally operating cash flows of the business or project. We also seek to minimize risks related to these loans by requiring such loans to be collateralized by various business assets (including inventory, equipment, accounts receivable, and the assignment of contracts that generate cash flow). The average size of our C&I loans at MarchJune 31,30, 2026 by exposure was $4.3 million with a median size of $1.0$0.9 million. Our lending strategy focuses on developing full customer relationships including deposits, cash management, and lending. The businesses that we focus on are generally mission aligned with our core values, including organic and natural products, sustainable companies, clean energy, nonprofits, and B Corporations TM.

Our C&I loans totaled $1.29$1.31 billion at MarchJune 31,30, 2026, which comprised 25.7%25.4% of our total loan portfolio. During the threesix months ended MarchJune 31,30, 2026, the C&I loan portfolio decreased by 3.1%2.1% from $1.33 billion at December 31, 2025.

Our multifamily loans totaled $1.78$1.86 billion at MarchJune 31,30, 2026, which comprised 35.3%36.2% of our total loan portfolio. During the threesix months ended MarchJune 31,30, 2026, the multifamily loan portfolio increased by 8.1%13.2% from $1.64 billion at December 31, 2025.

Our CRE loans totaled $379.9$436.1 million at MarchJune 31,30, 2026, which comprised 7.5%8.5% of our total loan portfolio. During the threesix months ended MarchJune 31,30, 2026, the CRE loan portfolio increased by 4.6%20.1% from $363.3 million at December 31, 2025.

Our retail loan portfolio comprised 31.2%29.7% of our total loan portfolio at MarchJune 31,30, 2026 and 32.1% of our loan portfolio at December 31, 2025. The major categories of our retail loan portfolio are discussed below.

As of MarchJune 31,30, 2026, our residential real estate lending loans totaled $1.23$1.20 billion at MarchJune 31,30, 2026, which decreased by 0.9%3.1% from $1.24 billion at December 31, 2025. The residential real estate portfolio comprised 78.2%78.5% of our retail loan portfolio and 24.4%23.3% of our total loan portfolio, and is 99% first mortgage loans and 1% second mortgage loans.

Consumer solar. Our consumer solar portfolio is comprised of purchased residential solar loans, secured by Uniform Commercial Code financing statements. Our consumer solar portfolio is fully acquired and is in run-off mode. Our consumer solar loans totaled $315.0$303.5 million at MarchJune 31,30, 2026, which comprised 6.3%5.9% of our total loan portfolio, compared to $325.2 million, or 6.6% of our total loan portfolio, at December 31, 2025.

Consumer and other. Our consumer and other portfolio is comprised of purchased student loans, unsecured consumer loans and overdraft lines. Our consumer and other loans totaled $25.9$24.5 million at MarchJune 31,30, 2026, which comprised 0.5% of our total loan portfolio, compared to $27.7 million, or 0.5% of our total loan portfolio, at December 31, 2025.

The information in the following table is based on the contractual maturities of individual loans, including loans that may be subject to renewal at their contractual maturity. Renewal of these loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below because borrowers have the right to prepay obligations with or without prepayment penalties. The following tables summarize the loan maturity distribution by type and related interest rate characteristics at MarchJune 31,30, 2026:

The following table presents our loans held for investment with maturity due after MarchJune 31,30, 2027:

The following tables presents, by loan type, the changes in the allowance for credit losses for the three and six months ended MarchJune 31,30, 2026 and MarchJune 31,30, 2025:

The allowance for credit losses on loans increased $10.6$11.4 million to $68.2$68.9 million at MarchJune 31,30, 2026 from $57.6 million at December 31, 2025, primarily asdue to increases in reserves of $10.3 million for a resultsingle ofborrower anrelationship increasethat ofmoved specificto reservesnonaccrual onstatus nonperformingduring loans.the three months ended March 31, 2026. The ratio of allowance to total loans was 1.35%1.34% at MarchJune 31,30, 2026 and 1.16% at December 31, 2025.

At MarchJune 31,30, 2026 the allowance for credit losses on held-to-maturity securities was $0.7$0.8 million, compared to $0.7 million at December 31, 2025.

Nonperforming assets totaled $98.9$102.7 million, or 1.08%1.09% of period-end total assets at MarchJune 31,30, 2026, an increase of $70.2$74.0 million, compared with $28.7 million, or 0.32% of period-end total assets at December 31, 2025. The increase in non-performingnonperforming assets at MarchJune 31,30, 2026 compared to December 31, 2025 assets was primarily driven by a $71.5$73.9 million increase in multifamily nonaccrual loans toand a$0.5 single-borrowermillion afterincrease thein borrowerresidential indicatedreal anestate expectednonaccrual default,loans, offset by a $0.7$2.3 million decrease in construction nonaccrual loans and a $0.5 million decrease in commercial and industrial nonaccrual loans. The increase in multifamily nonaccrual loans was primarily due to $78.0 million of multifamily loans to a single-borrower that moved to nonaccrual status after the borrower indicated an expected default during the three months ended March, 31, 2026.

Potential problem loans are loans which management has doubts as to the ability of the borrowers to comply with the present loan repayment terms. Potential problem loans are performing loans and include our special mention and substandard-accruing commercial loans and/or retail loans 30-89 days past due. Potential problem loans are not included in the nonperforming assets table above and totaled $62.2$65.0 million, or 0.7% of total assets, at MarchJune 31,30, 2026, and $99.8 million, or 1.1% of total assets, at December 31, 2025.

As of MarchJune 31,30, 2026, we entered into $66.1$59.3 million of short term investments of resell agreements backed by government guaranteed loans and other loans, with a weighted average interest rate of 5.88%.5.84%. As of December 31, 2025, we have entered into $48.7 million of short term investments of resell agreements backed by government guaranteed loans and other loans, with a weighted interest rate of 6.00%.

We had a deferred tax asset, net of deferred tax liabilities, of $31.3$33.3 million at MarchJune 31,30, 2026 and $30.8 million at December 31, 2025. As of MarchJune 31,30, 2026, our deferred tax assets were fully realizable with no valuation allowance held against the balance. Our management concluded that it was more-likely-than-not that the entire amount will be realized.

Deposits represent our primary source of funds. We are focused on growing our core deposits through relationship-based banking with our business and consumer clients. Total deposits were $8.18$8.46 billion at MarchJune 31,30, 2026, compared to $7.95 billion at December 31, 2025. We believe that our strong deposit franchise is attributable to our mission-based strategy of developing and maintaining relationships with our clients who share similar values and through maintaining a high level of service.

We gather deposits through each of our threeoffices branchor locationsbranches across New York City, our one branch in Washington, D.C., ournorthern one branch in San FranciscoCalifornia and through the efforts of our commercial banking team including our Boston group which focuses nationally on business growth. Through our branch network, online, mobile and direct banking channels, we offer a variety of deposit products including demand deposit accounts, money market deposits, NOW accounts, savings and certificates of deposit, ICS accounts, Certificate of Deposit Account Registry Service accounts, and brokered certificates of deposit. We bank politically active customers, such as campaigns, political action committees ("PACs"), and state and national party committees, which we refer to as political deposits. These deposits exhibit seasonality based on election cycles. As of MarchJune 31,30, 2026 and December 31, 2025, we had approximately $1.86$2.08 billion and $1.73 billion, respectively, in political deposits on- and off-balance sheet which are primarily in demand deposits.

Additionally, we utilize a custodial deposit transference structure through the IntraFi ICS network for certain deposit programs whereby we, acting as custodian of account holder funds, place a portion of such account holder funds that are not needed to support near term settlement at one or more third-party banks insured by the FDIC (each, a "Program Bank"). Accounts opened at Program Banks are established in our name as custodian, for the benefit of our account holders. We remain the issuer of all accounts under the applicable account holder agreements and have sole custodial control and transaction authority over the accounts opened at Program Banks. We maintain the records of each account holder's deposits maintained at Program Banks. As of MarchJune 31,30, 2026 and December 31, 2025, these off-balance sheet deposits totaled $1.13$1.03 billion and $1.05 billion, respectively. In return for record keeping services at Program Banks, the Company receives a servicing fee. For the three and six months ended MarchJune 31,30, 2026, Thethe Company recognized $2.9$2.3 million and $8.6$5.2 thousandmillion in servicing fee income compared to $102.2 thousand and $110.8 thousand for the three and six months ended MarchJune 31,30, 2026 and March 31, 2025, respectively.2025.

Total estimated uninsured deposits at MarchJune 31,30, 2026 and December 31, 2025 were $4.76$4.84 billion and $4.61 billion, respectively.