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

Multi-family real estate loans generally involve a greater risk than residential real estate loans because of legislation and government regulations involving rent control and rent stabilization, which are outside the control of the borrower or the Bank, and could impair the value of the security for the loan or the future cash flow of such properties. For example, on June 14, 2019, the State of New York enacted legislation increasing the restrictions on rent increases in a rent-regulated apartment building, including, among other provisions, (i) repealing the vacancy bonus and longevity bonus, which allowed a property owner to raise rents as much as 20% each time a rental unit became vacant, (ii) eliminating high rent vacancy deregulation and high-income deregulation, which allowed a rental unit to be removed from rent stabilization once it crossed a statutory high-rent threshold and became vacant, or the tenant’s income exceeded the statutory amount in the preceding two years, and (iii) eliminating an exception that allowed a property owner who offered preferential rents to tenants to raise the rent to the full legal rent upon renewal. The legislation still permits a property owner to charge up to the full legal rent once the tenant vacates. As a result of this legislation as well as previously existing laws and regulations, it is possible that rental income might not rise sufficiently over time to satisfy increases in the loan rate at repricing or increases in overhead expenses (e.g., utilities, taxes, maintenance, etc.). For example, the New York City Rent Guidelines Board established the maximum rent increase on certain apartments at 2.75%3% for a one-year lease and 5.25%4.5% for a two-year lease, beginning on or after October 1, 20242025 and through September 30, 2025, and while the overall inflation rate increased at a greater rate.2026. In addition, overhead (including maintenance) expenses often increase significantly during inflationary periods. Finally, if the cash flow from a collateral property is reduced (e.g., if leases are not obtained or renewed), the borrower’s ability to repay the loan and the value of the security for the loan may be impaired.

As a lender, we are exposed to the risk that customers may not repay their loans according to the original terms, and the collateral securing the payment of those loans may be insufficient to pay any remaining loan balance. Additionally, at December 31, 2024,2025, our portfolio of business loans,loans totaled $2.73$3.24 billion, or 25.1%30.1% of our total loan portfolio, and our portfolio of non-owner occupied commercial real estate totaled $2.93 billion, or 27.3% of our total loan portfolio. We plan to continue to emphasize the origination of these types of loans, which generally expose us to a greater risk of nonpayment and loss than residential real estate loans because repayment of such loans often depends on the successful operations and income stream of the borrowers. Additionally, such loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to consumer loans or residential real estate loans. Furthermore, these loans expose us to greater credit risk than loans secured by residential real estate because the collateral securing these loans typically cannot be liquidated as easily as residential real estate. If we foreclose on these loans, our holding period for the collateral is typically longer than for a single or multi-family residential property because there are fewer potential purchasers of the collateral. Hence, we may experience significant credit losses, which could have a material adverse effect on our operating results.

Since the first quarter of 2021, we have been required to determine periodic estimates of lifetime expected credit losses on loans and recognize the expected credit losses as allowances for credit losses. This method of loan loss accounting represents a change from the previous method of providing allowances for loan losses that are probable, and greatly increased the types of data we need to collect and review to determine the appropriate level of the allowance for credit losses. We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of borrowers and the value of the real estate and other assets serving as collateral for the repayment of loans. In determining the amount of the allowance for credit losses, we rely on loan quality reviews, our past loss experience and that of our peer group, and the accuracy of macro-economic forecasts over a reasonable and supportable forecast period, among other factors. If our assumptions prove to be incorrect, the allowance for credit losses may not be sufficient to cover expected losses in the loan portfolio, resulting in additions to the allowance for credit losses. Material additions to the allowance for credit losses through charges to earnings would materially decrease our net income.

The Company's reputation is important to our success. Our ability to attract and retain customers, investors, employees and advisors may depend upon external perceptions of the Company. Damage to the Company's reputation could cause significant harm to our business and prospects and may arise from numerous sources, including litigation or regulatory actions, compliance failures, cybersecurity incidents, errors in the use of artificial intelligence, customer services failures, or unethical behavior or misconduct of employees, advisors and counterparties. In addition, third parties with whom the Company has relationships with may take actions the Company has limited control over that could negatively impact perceptions about the Company or the financial services industry. Adverse developments with respect to the financial services industry may also, by association, negatively impact the Company's reputation or result in greater regulatory or legislative scrutiny of or litigation against the Company. The proliferation of social media may increase the likelihood that negative information about the Company, whether or not accurate, could impact the Company’s reputation and business.

From time to time, the Financial Accounting Standards Board (“FASB”) and the SEC change the financial accounting and reporting standards or the interpretation of those standards that govern the preparation of our external financial statements. These changes are beyond our control, can be hard to predict and could materially impact how we report our results of operations and financial condition. We could be required to apply a new or revised standard retroactively, resulting in our restating prior period financial statements in material amounts.

Dime Community Bancshares, Inc., a New York corporation, is a bank holding company formed in 1988. On a parent-only basis, the Holding Company has minimal operations, other than as owner of Dime Community Bank. The Holding Company is dependent on dividends from its wholly-owned subsidiary, Dime Community Bank, its own earnings, additional capital raised, and borrowings as sources of funds. The information in this report reflects principally the financial condition and results of operations of the Bank. The Bank's results of operations are primarily dependent on its net interest income, which is the difference between interest income on loans and investments and interest expense on deposits and borrowings. The Bank also generates non-interest income, such as fee income on deposit and loan accounts, merchant credit and debit card processing programs, loan swap fees, investment services, income from its title insurance subsidiary, and net gains on sales of securities and loans and other assets. The level of non-interest expenses, such as salaries and benefits, occupancy and equipment costs, other general and administrative expenses, expenses from the Bank’s title insurance subsidiary, and income tax expense, further affects our net income. Certain reclassifications have been made to prior year amounts and the related discussion and analysis to conform to the current year presentation. These reclassifications did not have an impact on net income or total stockholders' equity.

Critical accounting estimates are those estimates made in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or the results of the operations of the Registrant. Note 1 Summary of Significant Accounting Policies (page 53), to the Company’s Audited Consolidated Financial Statement for the year ended December 31, 20242025 contains a summary of significant accounting policies. These critical accounting estimates involve a significant degree of complexity and require management to make difficult and subjective judgments which often necessitate assumptions or estimates about highly uncertain matters. Policies with respect to the methodologies used to determine the allowance for credit losses on loans held for investment are important to the presentation of the Company’s consolidated financial condition and results of operations. The use of different judgments, assumptions or estimates could result in material variations in the Company’s consolidated results of operations or financial condition.

On January 1, 2021, 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 realized losses, net of recoveries, are charged against the allowance.

Although management believes that it uses the best information available to establish the Allowance for Credit Loss,Losses (“ACL”), management assesses the sensitivity of key quantitative assumptions including macroeconomic forecasts and prepayment rate assumptions. Changes in quantitative inputs may not occur in the same direction or magnitude across all segments of our loan portfolio and deterioration in some quantitative inputs may offset improvement in others. AtFor example, if at June 30, 2024, if2025, the four-quarter national unemployment rate forecast had increased 100 basis points our quantitative ACL reserve would have increased 11.8%.8.3%, or conversely, if the four-quarter national unemployment rate forecast had decreased 100 basis points our quantitative ACL reserve would have decreased 7.7%. The sensitivity analysis does not represent a change to our expectations of the economic environment but provides a hypothetical result to assess the sensitivity of the ACL to a change in a key quantitative input. Additionally, the sensitivity analysis described above does not incorporate changes to management’s judgment of qualitative loss factors.

In addition, various federal bank regulatory agencies,agencies (“Agencies”), as an integral part of the examination process, periodically review the allowance for credit losses. Such agencies may require the Bank to recognize adjustments to the allowance based on their judgments of the information available to them at the time of their examination.

General. Net income was $110.7 million in 2025, compared to $29.1 million in 2024, compared toand $96.1 million in 2023,2023. During 2025, net interest income increased by $89.9 million, non-interest income increased by $48.9 million, partially offset by an increase in non-interest expense of $26.6 million, an increase in income tax expense of $23.8 million and $152.6an millionincrease in 2022.provision for credit losses of $6.9 million. During 2024, non-interest income decreased by $40.2 million, non-interest expense increased by $13.4 million and provision for credit losses increased by $33.3 million and non-interest expense increased by $13.4 million, partially offset by an increase in net interest income of $1.5 million and a decrease in income tax expense of $18.4 million. During 2023, net interest income decreased by $63.3 million, non-interest expense increased by $12.4 million and non-interest income decreased by $2.0 million, partially offset by a decrease of $18.6 million in income tax expense and a decrease of $2.6 million in provision for credit losses. During 2022, net interest income increased by $22.3 million, provision for credit losses decreased by $839 thousand, and non-interest expense decreased by $44.6 million, partially offset by a non-interest income decrease of $3.9 million and an income tax expense increase of $15.2 million.

The discussion of net interest income for the years ended December 31, 2025, 2024, 2023, and 20222023 should be read in conjunction with the following tables, which set forth certain information related to the consolidatedConsolidated statementsStatements of operationsOperations for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated. The average yields and costs were derived by dividing income or expense by the average balance of their related assets or liabilities during the periods represented. Average balances were derived from average daily balances. No tax-equivalent adjustments have been made for interest income exempt from Federal, state, and local taxation. The yields include loan fees consisting of amortization of loan origination and commitment fees and certain direct and indirect origination costs, prepayment penalty fees, and late charges that are considered adjustments to yields. LoanNet loan fees included in interest income were $4.2 million in 2025, $1.0 million in 2024, and $1.5 million in 2023,2023. andThe $3.1 millionincrease in 2022. The decrease innet loan fees in 2024 was primarily due to a declineincreases in loandeferred fees and prepayment fees.penalty Therefees areon no out-of-period adjustments includedloans in the rate/volume analysis in the following table.2025.

Interest Income. Interest income was $650.1 million in 2024, $609.4 million in 2023, and $439.2 million in 2022. During 2024, interest income increased $40.7 million from 2023, primarily reflecting increases in interest income of $28.1 million on business loans, $6.7 million on one-to-four family loans, $5.7 million on non-owner-occupied CRECommercial Real Estate loans, $3.4 million on other short-term investments, $1.5 million on multifamily loans, and $1.4 million in securities. The increased interest income on business loans was primarily due to an increase of $254.5 million in the average balances of business loans and a 45-basis point increase in yield of such loans in the period. The increased interest income on one-to-four family loans was primarily due to a 45-basis point increase in the yield of one-to four family loans and an increase of $62.4 million in the average balances of such loans in the period. The increased interest income on non-owner-occupied CRECommercial Real Estate loans was primarily due to a 22-basis point increase in yield of non-owner-occupied CRECommercial Real Estate loans, offset by a decrease of $30.5 million in the average balances of such loans in the period. The increased interest income from short-term investments was primarily due to an increase of $57.1 million in the average balances of short-term investments and a 9-basis point increase in yield of such investments in the period. The increased interest income on multifamily loans was primarily due to a 23-basis point increase in yield of multifamily loans, offset by a decrease of $168.9 million in the average balances of such loans in the period. The increased interest income on securities was primarily due to a 25-basis point increase in yield of securities, offset by a decrease of $124.1 million in the average balances of such securities in the period. During 2023, interest income increased $170.2 million from 2022, primarily reflecting increases in interest income of $48.2 million on business loans, $45.8 million on non-owner occupied CRE loans, $40.7 million on multifamily loans and $19.3 million on short-term investments. The increased interest income on business loans was primarily due to an increase of $240.2 million in the average balances of business loans and a 162-basis point increase in the yield of such loans. The increased interest income on non-owner occupied CRE loans was primarily due to an increase of $282.0 million in the average balances of non-owner occupied CRE loans and a 102-basis point increase in the yield of such loans. The increased interest income on multifamily loans was primarily due to an increase of $420.4 million in the average balances of multifamily loans and a 60-basis point increase in the yield of such loans. The increased interest income from short-term investments was primarily due to an increase of $193.8 million in the average balances of short-term investments and a 376-basis point increase in the yield of such investments.

Interest Expense. Interest expense was $332.1 million in 2024, $292.8 million in 2023, and $59.4 million in 2022. During 2024, interest expense increased $39.3 million from 2023, primarily reflecting increases in interest expense of $50.4$65.7 million on money market accounts, $7.0 million on savings accounts, $4.4 million on CDs, $3.9 million on interest-bearing checking accountsdeposits and $3.6 million on subordinated debt.debt, partially offset by a decrease of $28.9 million in FHLBNY advances. The increase in interest expense on money market accountsdeposits primarily reflects a $767.4 million increase in the average balances of money market accounts and a 77-basis point increase in rates paid on such deposits in the period. The increase in interest expense on savings accounts was primarily due to a 52-basis point increase in rates paid on saving accounts, offset by a decrease of $133.9 million in the average balances of such deposits in the period. The increase in interest expense on CDs was primarily due to a 58-basis point increase in rates paid on CDs, offset by a decrease of $93.1 million in the average balances of such deposits in the period. The increase in interest expense on interest-bearing checking accounts was primarily due to a 60-basis point increase in rates paid on interest-bearing checking accounts, offset by a decrease of $44.2 million in the average balances of such deposits in the period. The increase in interest expense on subordinated debt primarily reflects a $36.5 million increase in the average balances of subordinated debt and a 71-basis point increase in rates paid on such debt. DuringThe 2023,decreased interest expense increased $233.4 million from 2022, primarily reflecting increases in interest expense of $73.1 million on money market accounts, $57.4 million on savings accounts, $49.1 million on FHLBNY advances and $44.7 million on CDs. The increase in interest expense on money market accounts was primarily duerelated to a 254-basis$551.9 point increase in rates paid on money market accounts, offset by amillion decrease of $88.5 million in the average balancesbalance of FHLB advances and a 58-basis point decrease in the cost of such depositsadvances in the period. The increase in interest expense on savings accounts was primarily due to a 229-basis point increase in rates paid on savings accounts and an increase of $496.1 million in the average balances of such deposits in the period. The increase in interest expense on CDs was primarily due to a 277-basis point increase in rates paid on CDs and an increase of $517.7 million in the average balances of such deposits in the period.

Provision for Credit Losses. The Company recognizedrecorded a credit loss provision of $43.0 million in 2025, $36.1 million in 2024 and $2.8 million in 2023. The $43.0 million provision for credit losses of $36.1 millionrecognized in 2024,2025 $2.8was millionattributable to updates in 2023the macroeconomic forecast, updated loss driver models, and $5.4charge-offs millionon innon-owner-occupied 2022.real estate loans. The $36.1 million provision for credit losses recognized in 2024 was related to additional provisioning for the pooled multifamily, C&I, and criticized loan portfolios. The $2.8 million provision for credit losses recognized in 2023 was associated with increased provisioning for individually analyzed loans. The $5.4 million provision for credit losses recognized in 2022 was associated with growth in the loan portfolio and a deterioration of forecasted macroeconomic conditions, offset by a reduction in reserves on individually analyzed loans and unfunded commitments.

Non-Interest Income. Non-interest income was $44.9 million in 2025, compared to a loss of $4.0 million in 2024, compared toand income of $36.2 million in 2023,2023. During 2025, non-interest income increased $48.9 million from 2024, primarily driven by a $43.0 million change in the net loss on sale of securities resulting from the 2024 securities portfolio restructuring, a $7.0 million increase in BOLI income and incomea $3.2 million increase in service charges and other fees, partially offset by a change of $38.2$8.4 million infrom 2022.gain on sale of other assets. During 2024, non-interest income decreased $40.2 million from 2023, primarily due to aan increase of $41.4 million fromin net loss on sale of securities asresulting afrom resultthe of a2024 securities portfolio restructuring in 2024 and a decrease of $5.0 million in loan level derivative income, partially offset by an increase of $7.2 million from a gain on sale of other assets. During 2023, non-interest income decreased $2.0 million from 2022, due primarily to a decrease of $2.9 million from net gain on sale of securities and other assets, partially offset by a $3.4 million increase in loan level derivative income.

Non-Interest Expense. Non-interest expense was $253.1 million in 2025, $226.5 million in 2024, and $213.1 million in 2023,2023. During 2025, non-interest expense increased $26.6 million from 2024, primarily due to a $14.9 million increase in salaries and $200.7employee benefits due to hiring bankers to support core deposit and business loan growth. In addition, during 2025, the Company recorded a $7.2 million inloss 2022.from a pension settlement recorded during the first quarter of 2025. During 2024, non-interest expense increased $13.4 million from 2023, primarily due to a $18.7 million increase in salaries and employee benefits as the Bank continued to add business teams and a $2.5 million increase in professional services, partially offset by a $7.8 million decrease in severance expense. In addition, during 2024, the Company recorded a $1.2 million loss from a pension settlement. During 2023, non-interest expense increased $12.4 million from 2022, primarily due to a $6.9 million increase in severance expense, a $5.0 million increase in federal deposit insurance premiums (including $1.0 million of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank), partially offset by a $2.7 million decrease in salaries and employee benefits.

Income Tax Expense. Income tax expense was $46.1 million in 2025, $22.4 million in 2024, and $40.8 million in 2023,2023. Income tax expense increased $23.8 million during 2025 compared to 2024, primarily as a result of higher pre-tax income during 2025 and $59.4discrete millionitems inrelated 2022.to an uncertain tax position and a deferred tax item from prior tax years. Income tax expense decreased $18.4 million during 2024 compared to 2023, primarily as a result of $85.4 million of lower pre-tax income during 2024. Income tax expense during 2024 included $9.1 million of expense related to the taxable gain and Modified Endowment Contract (“MEC”) Tax on the surrender of legacy bank owned life insurance (“BOLI”) assets. Income tax expense decreased $18.6 million during 2023 compared to 2022, primarily as a result of $75.0 million of lower pre-tax income during 2023.

Assets. Assets totaled $14.35$15.34 billion at December 31, 2024,2025, $717.3$988.4 million above their level at December 31, 2023,2024, primarily due to an increase in cash and due from banks of $826.0$1.07 million,billion, an increase in the loan portfolioBOLI of $81.5$110.5 million and an increase in othertotal assetssecurities of $62.8$88.8 million, partially offset by a decrease in totalthe securitiesloan portfolio of $152.8$122.4 million, a decrease in BOLIother assets of $59.2$88.0 million, a decrease in derivative assets of $40.2 million and a decrease in restrictedloans stockheld for sale of $29.6$20.6 million.

Total net loans held for investment increaseddecreased $81.5$122.4 million during the year ended December 31, 2024,2025, to $10.78$10.66 billion at period end. During the period, theloan Bankoriginations, hadexcluding originationsnew oflines, $570.9were $701.1 million.

Total securities decreasedincreased $152.8$88.8 million during the year ended December 31, 2024,2025, to $1.32$1.42 billion at period end, primarily due to proceeds from principal payments, calls, maturities and sales of $621.6 million offset in part by purchases of $402.8$274.4 million and a decrease in unrealized losses of $66.0$23.7 million, offset in part by proceeds from principal payments, calls and maturities of $170.8 million and the proceeds from the sale of available for sale securities of $38.8 million. There were no transfers to or from securities held-to-maturity for the year ended December 31, 20242025 or 2023.2024.

BOLI decreasedincreased $59.2$110.5 million during the year ended December 31, 2024,2025, to $290.7$401.2 million. The decreaseincrease in BOLI is primarily due to the surrendercompletion of legacythe BOLIrestructuring assetsinitiative ofthat $84.5 million, offset by $15.0 millionbegan in late 2024, as well as purchases of new assetsBOLI and an increase in cash surrender value of $10.3 million.assets.

Liabilities. Total liabilities increased $547.0$909.1 million during the year ended December 31, 2024,2025, to $12.96$13.87 billion at period end, primarily due to an increase in deposits of $1.16 billion, an increase in subordinated debt of $72.1 million and an increase in other short-term borrowings of $50.0 million, partially offset by a decrease in FHLBNY advances of $705.0$100.0 million, a decrease in derivative cash collateral of $60.0 million, a decrease in other short-term borrowings of $50.0 million and a decrease in derivative liabilities of $12.9$34.8 million.

Stockholders’ Equity. Stockholders’ equity increased $170.3$79.3 million during the year ended December 31, 2024,2025, to $1.40$1.48 billion at period end, primarily due to $135.8 million in net proceeds raised in connection with a common equity offering, net income for the period of $29.1$110.7 million and a decrease in accumulated other comprehensive loss of $46.6$13.6 million, offset in part by common stock dividends of $40.3$43.8 million and preferred stock dividends of $7.3 million.

In the event that the Bank sells loans in the secondary market or through securitization, it generally retains servicing rights on the loans sold. Servicing fees are typically derived based upon the difference between the actual origination rate and contractual pass-through rate of the loans at the time of sale. At December 31, 20242025 and 2023,2024, the Bank had recorded servicing rightrights assets ("SRAs") of $2.4$2.1 million and $2.9$2.4 million, respectively, associated with the sale of loans to third-party institutions in which the Bank retained the servicing of the loan. The Bank outsources the servicing of a portion of our one-to-four family mortgage loan portfolio to an unrelated third-party under a sub-servicing agreement. Fees paid under the sub-servicing agreement are reported as a component of otherOther non-interest expense in the consolidatedConsolidated statementsStatements of operations.Operations.

Non-owner occupiedNon-owner-occupied commercial real estate loans and multifamily residential and residential mixed-use loans have collectively represented the largest percentage of the Company’s loan portfolio, accounting for 65%59% and 69%65% of total loans held for investment as of December 31, 20242025 and December 31, 2023,2024, respectively. Non-owner occupiedNon-owner-occupied commercial real estate loans represent 30%27% and 31%30% of total loans held for investment as of December 31, 20242025 and December 31, 2023,2024, respectively. Multifamily residential and residential mixed-use loans made up 35%32% and 37%35% of total loans held for investment as of December 31, 20242025 and December 31, 2023,2024, respectively. The Company expects that non-owner occupiednon-owner-occupied commercial real estate loans and multifamily residential and residential mixed-use loans will continue to be a significant portion of the Company’s total loan portfolio.

Non-owner occupiedNon-owner-occupied commercial real estate loans and multifamily residential and residential mixed-use loans are subject to a varying degree of risk associated with changing general economic conditions. The Company employs heightened risk management practices that address key elements, including board and management oversight and strategic planning, portfolio management, development of underwriting standards, risk assessment and monitoring through market analysis and stress testing, and maintenance of appropriate capital levels as needed to support lending activities.

Despite the Company's concentration in non-owner occupiednon-owner-occupied commercial real estate and multifamily residential and residential mixed-use loans, the properties securing these portfolios are diversified in terms of type and geographic location. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. As a matter of policy, the non-owner occupiednon-owner-occupied commercial real estate loan and the multifamily residential and residential mixed-use loan portfolios are subject to risk exposure limits by individual asset classes as well as geographic collateral locations outside of our market areas.

We regularly identify and assess concentration levels through ongoing reporting to our Board of Directors as well as committees at both the Board and Management levels. The managementManagement team has extensive knowledge and experience in underwriting non-owner occupiednon-owner-occupied commercial real estate loans and multifamily residential and residential mixed-use loans. Management has established the Credit Risk Management Committee which meets quarterly to review all policies and procedures, large lending exposures, and emerging trends including trends related to delinquency, debt service coverage ratios, loan-to-value, and loan ratings to aid in early detection and escalation of potential issues. The Company has a dedicated team responsible for conducting comprehensive annual reviews of the portfolios, ensuring consistent oversight. Credit underwriting standards are periodically reviewed and adjusted based upon observations from our ongoing monitoring of economic conditions in major real estate markets in which we lend. In response to the current dynamic interest rate environment and changes in the benchmark rates that determine loan pricing, the Company has enhanced its stress testing and loan review activities to mitigate interest rate reset risk with a specific emphasis on borrowers' abilities to absorb the impact of higher interest loan rates and measure the resiliency of the portfolios. As a general rule, Management takes a selective approach to originating non-owner occupiednon-owner-occupied commercial real estate and multifamily residential and residential mixed-use loans, prioritizing quality and strategic alignment.

The following tables present the composition by property type and weighted average loan-to-value (“LTV”) of the Company’s non-owner occupiednon-owner-occupied commercial real estate loans:

Additional information related to the granularity in the non-owner occupiednon-owner-occupied commercial real estate and multifamily residential and residential mixed-use portfolios is presented in the tables below as of December 31, 2024 and December 31, 2023:below.

We do not originate or purchase loans, either whole loans or loans underlying mortgage-backed securities (“MBS”), which would have been considered subprime loans at origination, i.e., real estate loans advanced to borrowers who did not qualify for market interest rates because of problems with their income or credit history. See Note 3 of our Consolidated Financial Statements for a discussion ofand evaluation for impaired securities.

We generally initiate foreclosure proceedings on real estate loans when a loan enters non-accrual status based upon non-payment, unless the borrower is paying in accordance with an agreed upon modified payment agreement. We obtain an updated appraisal upon the commencement of legal action to calculate a potential collateral shortfall and to reserve appropriately for the potential loss. If a foreclosure action is instituted and the loan is not brought current, paid in full, or refinanced before the foreclosure action is completed, the property securing the loan is transferred to Other Real Estate Owned (“OREO”) status. We generally attempt to utilize all available remedies, such as note sales in lieu of foreclosure, in an effort to resolve non-accrual loans and OREO properties as quickly and prudently as possible in consideration of market conditions, the physical condition of the property and any other mitigating circumstances. We have not initiated any expected or imminent foreclosure proceedings that are likely to have a material adverse impact on our consolidated financial statements. In the event that a non-accrual loan is subsequently brought current, it is returned to accrual status once the doubt concerning collectability has been removed and the borrower has demonstrated performance in accordance with the loan terms and has made at least six months of payments.

WeThe maintainBank maintains a reserve, recorded in other liabilities, associated with unfunded loan commitments accepted by the borrower. The amount of reserve was $2.2 million and $2.7 million at December 31, 20242025 and 2023,2024, respectively. This reserve is determined based upon the outstanding volume of unfunded loan commitments at each period end. Any increases or reductions in this reserve are recognized in provision for credit losses.

Provision for credit losses of $36.1$43.0 million and $2.8$36.1 million were recorded during the twelve-month periods ended December 31, 20242025 and 2023,2024, respectively. The credit loss provision for the year ended December 31, 2025, was attributable to updates in the macroeconomic forecast, updated loss driver models, and charge-offs on non-owner-occupied real estate loans. The $36.1 million provision for credit losses recognized in 2024 was related to additional provisioning for the pooled multifamily, C&I, and criticized loan portfolios. The $2.8 million provision for credit losses recognized in 2023 was associated with provisioning for individually analyzed loans.

For further discussion of the allowance for credit losses and related activity during the years ended December 31, 2024,2025, 20232024 and 2022,2023, please see Note 4 “Loans Held for Investment, Net” to the Consolidated Financial Statements.

The following table presents our allowance for credit losses allocated by loan type and the percent of each to total loans at the dates indicated.indicated:

The following table presents the weighted average contractual maturity of our securities available-for-sale at December 31, 2025:

The following table presents the weighted average contractual maturity of our securities held-to-maturity at theDecember date31, indicated below2025:

The following table presents our deposit accounts and the related weighted average interest rates at the dates indicated (Dollars in thousands):

The weighted average maturity of our CDs (excluding brokered deposits) at December 31, 20242025 was 5.84.9 months, compared to 5.15.8 months at December 31, 2023.2024.

Non-insured deposits (excluding collateralized deposits and deposits with pass through insurance) represented 31.2%34.0% and 28.9%31.2% of total deposits as of December 31, 20242025 and 2023,2024, respectively. The Bank had $1.89$2.12 billion and $1.88$1.89 billion of public funds collateralized by securities and Municipal Letters of Credit (“MULOC”), and $1.55$1.80 billion and $680.8$1.55 millionbillion of deposits with pass through insurance as of December 31, 2024,2025, and 2023,2024, respectively.

The following table presents the time deposits with balances exceeding the $250,000 Federal Deposit Insurance Corporation (“FDIC”) insurance limit by maturity at December 31, 20242025:

The Bank’s total borrowing line with Federal Home Loan Bank New York (“FHLBNY”) equaled $3.87$3.46 billion at December 31, 2024.2025. The Bank had $608.0$508.0 million of FHLBNY advances outstanding at December 31, 2024,2025, and $1.31$608.0 billionmillion at December 31, 2023.2024. The Bank maintained sufficient collateral, as defined by the FHLBNY (principally in the form of real estate loans), to secure such advances.

Liquidity is primarily needed to meet customer borrowing commitments and deposit withdrawals, either on demand or on contractual maturity, to repay borrowings as they mature, to fund current and planned expenditures and to make new loans and investments as opportunities arise. The Bank’s primary sources of funding for its lending and investment activities include deposits, loan payments, investment security principal and interest payments and advances from the FHLBNY. The Bank may also sell or securitize selected multifamily residential, mixed-use or one-to-four family residential real estate loans to private sector secondary market purchasers and has in the past sold such loans to Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”). The Company may additionally issue debt or equity under appropriate circumstances. Although maturities and scheduled amortization of loans and investments are predictable sources of funds, deposit flows and prepayments on real estate loans and MBS are influenced by interest rates, economic conditions and competition.

The Bank is a member of American Financial Exchange (“AFX”), through which it may either borrow or lend funds on an overnight or short-term basis with other member institutions. The availability of funds changes daily. At December 31, 2025, the Bank did not utilize funds available through the AFX. At December 31, 2024, the Bank had $50.0 million of such borrowings outstanding through the AFX, which iswas included in otherOther short-term borrowings on the consolidatedConsolidated statementsStatements of financialFinancial condition. At December 31, 2023, the Bank did not utilize funds available through the AFX.Condition.

The Bank utilizes repurchase agreements as part of its borrowing policy to add liquidity. Repurchase agreements represent funds received from customers, generally on an overnight basis, which are collateralized by investment securities. As of December 31, 2024 and December 31, 2023, theThe Bank did not have any repurchase agreements.agreements as of December 31, 2025 or 2024, respectively.

Total deposits (including mortgage escrow deposits) increased $1.16 billion during the year ended December 31, 20242025 comparedand to$1.16 an increase of $276.2 millionbillion during the year ended December 31, 2023.2024, respectively. Within deposits, core deposits (i.e., non-CDs) increased $1.26 billion during the year ended December 31, 2025 compared to an increase of $1.74 billion during the year ended December 31, 2024 and decreased $216.1 million during the year ended December 31, 2023.2024. The increase in core deposits during the 20242025 period was primarily due to an increase in money market deposits, non interest bearing checking and non interest-bearing checking accounts, partially offset by a decrease in savings accounts. During 2025 and 2024, the Company made significant investments in its Private and Commercial Bank, including the hiring and onboarding of several deposit-gathering teams. CDs decreasedincreased $48.0 million during the year ended December 31, 2025 compared to a decrease of $538.6 million during the year ended December 31, 2024 compared to an increase of $492.3 million during the year ended December 31, 2023.2024. The decreaseincrease in CDs during the current period was primarily due to a $475.9$118.0 million increase in non-brokered time deposits, offset by a decrease of $70.0 million in brokered CDs.

The Bank reduced its outstanding FHLBNY advances by $705.0$100.0 million during the year ended December 31, 2024,2025, compared to a $182.0$705.0 million increasereduction during the year ended December 31, 2023.2024. See Note 12. “Federal Home Loan Bank Advances” to our Consolidated Financial Statements for further information.

Subordinated debentures totaled $272.5 million at December 31, 2025 compared to $272.3 million at December 31, 20242024. comparedOn January 26, 2026 the Company announced that it intends to $200.2 millionredeem at Decemberpar 31,on 2023.March The30, increase2026 inall subordinatedof debenturesits wasoutstanding $40,000,000 principal amount of Fixed/Floating Subordinated Debentures due to2030. the Company’s issuance of subordinated notes that are described in more detail inSee Note 13, “Subordinated Debentures” to our Consolidated Financial Statements for further information.

In the event that the Bank should require funds beyond its ability or desire to generate them internally, additional sources of liquidity are available through its collateralized borrowing lines at the FHLBNY and the FRB,Federal Reserve Bank (“FRB”), as well as unsecured borrowing capacity through the AFX and lines of credit with unaffiliated correspondent banks. At December 31, 2024,2025, the Bank had remaining borrowing capacity of $1.84$1.52 billion through the FHLBNY, subject to customary minimum FHLBNY common stock ownership requirements (i.e., 4.5% of the Bank’s drawn FHLBNY borrowings). The Bank also had access to the FRB Discount Window. At December 31, 2024,2025, an available line of credit totaling $394.6$349.2 million was in place at the FRB backed by investment securities with no advances drawn. Additionally, at December 31, 2024,2025, a line of credit totaling $3.04$3.56 billion was in place at the FRB secured by certain qualifying 1-4one-to-four family residential mortgage loans, construction loans and CRE loans with no amounts drawn.

During the year ended December 31, 20242025 and 2023,2024, business loan originations totaledexcluding $371.2new lines were $402.2 million and $343.9$371.2 million, respectively. During the year ended December 31, 20242025 and 2023,2024, real estate loan originations excluding new lines (excluding owner-occupied commercial real estate) totaled $199.6$298.9 million and $653.7$199.6 million, respectively.

The Holding Company did not repurchase any shares of its common stock during the year ended December 31, 2024.2025 Theor Holding2024, Company repurchased 36,813 shares of its common stock at an aggregate cost of $947 thousand during the year ended December 31, 2023.respectively. As of December 31, 2024,2025, up to 1,566,947 shares remained available for purchase under the authorized share repurchase programs. See "Part II - Item 5, Issuer Purchases of Equity Securities" for additional information about repurchases of common stock.

The Holding Company paid $7.3 million in cash dividends on its preferred stock during the years ended December 31, 20242025 and 2023,2024, respectively.

The Holding Company paid $38.0$42.9 million and $37.3$38.0 million in cash dividends on its common stock during the years ended December 31, 20242025 and 2023,2024, respectively.

Additionally, in connection with a loan securitization completed in 2017, the Bank executed a reimbursement agreement with FHLMC that obligates the Company to reimburse FHLMC for any contractual principal and interest payments on defaulted loans, not to exceed 10% of the original principal amount of the loans comprising the aggregate balance of the loan pool at securitization. The maximum exposure under this reimbursement obligation is $28.0 million. The Bank has pledged $28.0$27.9 million of pass-through MBS issued by U.S. Government-Sponsored Enterprises (“U.S. GSEs”) as collateral.

Dime Community Bancshares, Inc., a New York corporation, is a bank holding company formed in 1988. On a parent-only basis, the Company has minimal operations, other than as owner of Dime Community Bank. The Company is dependent on dividends from its wholly-owned subsidiary, Dime Community Bank, its own earnings, additional capital raised, and borrowings as sources of funds. The information in this report reflects principally the financial condition and results of operations of the Bank. The Bank's results of operations are primarily dependent on its net interest income, which is the difference between interest income on loans and investments and interest expense on deposits and borrowings. The Bank also generates non-interest income, such as fee income on deposit and loan accounts, merchant credit and debit card processing programs, loan swap fees, investment services, income from its title insurance subsidiary, and net gains on sales of securities and loans. The level of non-interest expenses, such as salaries and benefits, occupancy and equipment costs, other general and administrative expenses, expenses from the Bank’s title insurance subsidiary, and income tax expense, further affects our net income. Certain reclassifications have been made to prior year amounts and the related discussion and analysis to conform to the current year presentation. These reclassifications did not have an impact on net income or total stockholders' equity.

The Board of Directors has approved a liquidity policy that it reviews and updates at least annually. Senior management is responsible for implementing the policy. The Bank’s Asset Liability Committee (“ALCO”) is responsible for general oversight and strategic implementation of the policy and management of the appropriate departments are designated responsibility for implementing any strategies established by ALCO. On a daily basis, appropriate senior management receives a current cash position report and 30-day forecast to ensure that all short-term obligations are timely satisfied, and that adequate liquidity exists to fund future activities. Reports detailing the Bank’s liquidity reserves are presented to appropriate senior management on at least a monthly basis, and the Board of Directors at each of its meetings. In addition, a twelve-month liquidity forecast is presented to ALCO in order to assess potential future liquidity concerns. A forecast of cash flow data for the upcoming 12 months is presented to the Board of Directors no less than annually. Given recent banking industry events, management monitors the level of uninsured deposits on a regular basis.

The Bank is a member of American Financial Exchange (“AFX”), through which it may either borrow or lend funds on an overnight or short-term basis with other member institutions. The availability of funds changes daily. At MarchJune 31,30, 2026 and December 31, 2025, the Bank did not have any such borrowings outstanding through the AFX.

The Bank utilizes repurchase agreements as part of its borrowing policy to add liquidity. Repurchase agreements represent funds received from customers, generally on an overnight basis, which are collateralized by investment securities. As of MarchJune 31,30, 2026 and December 31, 2025, the Bank did not have any repurchase agreements.

The Bank gathers deposits in direct competition with commercial banks, savings banks and brokerage firms, many among the largest in the nation. It must additionally compete for deposit monies against the stock and bond markets, especially during periods of strong performance in those arenas. The Bank’s deposit flows are affected primarily by the pricing and marketing of its deposit products compared to its competitors, as well as the market performance of depositor investment alternatives such as the U.S. bond or equity markets. To the extent that the Bank is responsive to general market increases or declines in interest rates, its deposit flows should not be materially impacted. However, favorable performance of the equity or bond markets could adversely impact the Bank’s deposit flows.

Total deposits (including mortgage escrow deposits) decreased $242.2$164.1 million during the threesix months ended MarchJune 31,30, 2026, compared to aan decreaseincrease of $70.2$54.0 million during the threesix months ended MarchJune 31,30, 2025. The decrease in deposits during the current period was primarily due to decreases in non-interest-bearingsavings accounts, CDs and interest-bearing checking accounts, interest bearing checking accounts, savings accounts and CDs, partially offset by an increase in money market accounts and non-interest-bearing checking deposits.

In the event that the Bank should require funds beyond its ability or desire to generate them internally, additional sources of funds are available through a borrowing line at the FHLBNY, borrowing capacity at the AFX, lines of credit with unaffiliated correspondent banks, and various brokered deposit sources. At MarchJune 31,30, 2026, the Bank had remaining borrowing capacity of $1.65$1.61 billion through the FHLBNY, subject to customary minimum FHLBNY common stock ownership requirements (i.e., 4.5% of the Bank’s outstanding FHLBNY borrowings). The Bank also had access to the Federal Reserve Bank (“FRB”) Discount Window. At MarchJune 31,30, 2026, an available line of credit totaling $339.0$335.4 million was in place at the FRB backed by investment securities with no advances drawn. Additionally, at MarchJune 31,30, 2026, a line of credit totaling $3.65$3.88 billion was in place at the FRB secured by certain qualifying one-to-four family residential mortgage loans, construction loans and commercial real estate loans with no amounts drawn.

The Bank reduced its outstanding FHLBNY advances by $73.0$123.0 million during the threesix months ended MarchJune 31,30, 2026, compared to a reduction of $100.0 million during the threesix months ended MarchJune 31,30, 2025. See Note 12. “FHLBNY Advances” for further information.

Subordinated debentures totaled $231.1$231.2 million at MarchJune 31,30, 2026 compared to $272.5 million at December 31, 2025. See Note 13. “Subordinated Debentures” to our Consolidated Financial Statements for further information.

During the threesix months ended MarchJune 31,30, 2026 and 2025, business loan originations excluding new lines were $170.3$318.4 million and $42.6$173.7 million, respectively. During the threesix months ended MarchJune 31,30, 2026,2026 and 2025, real estate loan originations excluding new lines (excluding owner-occupied commercial real estate) totaled $50.1$157.3 million and $28.9$125.1 million, respectively.

The Company and the Bank are subject to minimum regulatory capital requirements imposed by their primary federal regulators. As a general matter, these capital requirements are based on the amount and composition of an institution’s assets. At MarchJune 31,30, 2026, both the Company and the Bank were in compliance with all applicable regulatory capital requirementsrequirements, and the Bank was considered “well capitalized” for all regulatory purposes.

During the threesix months ended MarchJune 31,30, 2026 and 2025, the Company did not repurchase any shares of its common stock. As of MarchJune 31,30, 2026, 1,566,947 shares remained available for purchase under the authorized share repurchase programs. See “Part II - Item 2. Other Information - Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities” for additional information about repurchases of common stock.

The Company paid $1.8$3.6 million in cash dividends on its preferred stock during the threesix months ended MarchJune 31,30, 2026 and 2025, respectively.

The Company paid $10.8$21.6 million and $10.7$21.4 million in cash dividends on its common stock during the threesix months ended MarchJune 31,30, 2026 and 2025, respectively.

The Bank generally has outstanding borrowings outstanding in the form of FHLBNY advances, short-term or overnight borrowings, subordinated debt, as well as customer CDs with fixed contractual interest rates. In addition, the Bank is obligated to make rental payments under leases on certain of its branches and equipment.

As part of its loan origination business, the Bank generally has outstanding commitments to extend credit to borrowers, which are originated pursuant to its regular underwriting standards. Available lines of credit may not be drawn on or may expire prior to funding, in whole or in part, and amounts are not estimates of future cash flows. As of MarchJune 31,30, 2026, the Bank had $118.2$199.9 million of firm loan commitments that were accepted by the borrowers.

Non-owner occupied commercial real estate loans and multifamily residential and residential mixed-use loans have collectively represented the largest percentage of the Company’s loan portfolio, accounting for 57%55% and 59% of total loans held for investment as of MarchJune 31,30, 2026 and December 31, 2025, respectively. Non-owner occupied commercial real estate loans represented 26% and 27% of total loans held for investment as of MarchJune 31,30, 2026 and December 31, 2025.2025, respectively. Multifamily residential and residential mixed-use loans represented 31%29% and 32% of total loans held for investment as of MarchJune 31,30, 2026 and December 31, 2025, respectively. The Company expects that non-owner occupied commercial real estate loans and multifamily residential and residential mixed-use loans will continue to be a significant portion of the Company’s total loan portfolio.

The following tablestable presentpresents the composition by property type and weighted average LTV of the Company’s multifamily residential and residential mixed-use loans:

Additional information related to the granularity in the non-owner occupied commercial real estate and multifamily residential and residential mixed-use portfolios is presented in the tablestable below as of MarchJune 31,30, 2026 and December 31, 2025:

Our loan servicing policies and procedures require that a past due notice be sent to a delinquent borrower in accordance with the terms of the loan. Loan documents generally provide that a payment is deemed late between one and fifteen days after the due date. As a standard practice, notices are sent as soon as reasonably possible after a payment is deemed late, including ten days in the case of business loans, multifamily residential and mixed use loans, non-owner occupied commercial real estate loans, and acquisition, development, and construction (ADC) loans, and fifteen days in connection with one to fourone-to-four family residential and consumer loans. Thereafter, periodic letters are sent, and telephone calls are placed to the borrower until payment is received or a formal demand is made and the loan is transferred to Workout. When contact is made with the borrower prior to default or foreclosure, servicing will seek to obtain the full payment due. Once transferred, Workout will attempt to negotiate a repayment plan or other resolution with the borrower to avoid foreclosure, where appropriate.

We generally initiate foreclosure proceedings on real estate loans when a loan enters non-accrual status based upon non-payment, unless the borrower is paying in accordance with an agreed upon modified payment agreement. We obtain an updated appraisal upon the commencement of legal action to calculate a potential collateral shortfall and to reserve appropriately for the potential loss. If a foreclosure action is instituted and the loan is not brought current, paid in full, or refinanced before the foreclosure action is completed, the property securing the loan is transferred to Other Real Estate Owned (“OREO”) status. We generally attempt to utilize all available remedies, such as note sales in lieu of foreclosure, in an effort to resolve non-accrual loans and OREO properties as quickly and prudently as possible in consideration of market conditions, the physical condition of the property and any other mitigating circumstances. We have not initiated any expected or imminent foreclosure proceedings that are likely to have a material adverse impact on our consolidated financial statements.statements for the three and six months ended June 30, 2026. In the event that a non-accrual loan is subsequently brought current, it is returned to accrual status once the doubt concerning collectability has been removed and the borrower has demonstrated performance in accordance with the loan terms and has made at least six months of payments.

There was no carrying value of OREO properties on our Consolidated Statement of Financial Condition at MarchJune 31,30, 2026 or December 31, 2025. We did not recognize any provision for losses on OREO properties during the threesix months ended MarchJune 31,30, 2026 or 2025.

At MarchJune 31,30, 2026, there were $72.4$86.2 million of loans that were past due between 30 and 59 days, compared to $28.8 million at December 31, 2025. The 30 to 59-day delinquency levels fluctuate monthly and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans.

At MarchJune 31,30, 2026, there were $11.4$24.1 million of loans that were past due between 60 and 89 days, compared to $30.1 million at December 31, 2025. The 60 to 89-day delinquency levels fluctuate monthly and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans.

There were no accruing loans 90 days or more past due at MarchJune 31,30, 2026 or at December 31, 2025.

The Bank maintains a reserve, recorded in other liabilities, associated with unfunded loan commitments accepted by the borrower. The amount of our reserve was $2.6 million and $2.2 million at MarchJune 31,30, 2026 and December 31, 2025, respectively. This reserve is determined based upon the outstanding volume of unfunded loan commitments at each period end. Any increases or reductions in this reserve are recognized in provision for credit losses.

Provision for credit losses for the threesix months ended MarchJune 31,30, 2026 and 2025 was $12.3$26.2 million and $9.6$18.8 million, respectively. The $12.3$26.2 million credit loss provision for the threesix months ended MarchJune 31,30, 2026 was attributable to charge-offs andcharge-offs, provisioning for individually analyzed loans.loans and growth in the business loan portfolio. Included in the provision for credit losses for the six months ended June 30, 2025 was $1.8 million of provision related to one available-for-sale corporate security. The $9.6remainder millionof the credit loss provision for the threesix months ended MarchJune 31,30, 2025 was primarilyattributable associatedto withupdates provisioningin forthe individuallymacroeconomic analyzedforecast loans.and to the loss driver models.

For a further discussion of the allowance for credit losses and related activity during the threesix months ended MarchJune 31,30, 2026 and 2025, please see Note 6 “Securities” and Note 7 “Loans Held for Investment, Net” to the condensed Consolidated Financial Statements.

Comparison of Financial Condition at MarchJune 31,30, 2026 and December 31, 2025

Assets. Assets totaled $15.00$15.04 billion at MarchJune 31,30, 2026, $342.1$298.7 million below their level at December 31, 2025, primarily due to decreases of $294.3$419.4 million in cash and due from banks, and $148.6$61.4 million in the loan portfolio, partially offset by increases of $69.2$185.0 million in total securities and $36.2$16.3 million in loans held for sale.BOLI.

Loan originations, excluding new lines, totaled $220.4$475.7 million for the three-monthsix-month period ended MarchJune 31,30, 2026.

Total investment securities increased $69.2$185.0 million during the threesix months ended MarchJune 31,30, 2026, to $1.49$1.60 billion at period end, primarily due to purchases of $121.3$285.2 million, offset by proceeds from principal payments, calls and maturities of $43.6$89.8 million, an increase in unrealized losses of $5.2$6.4 million and proceeds from the sale of available for sale securities of $4.0 million. There were no transfers to or from securities held-to-maturity during the threesix months ended MarchJune 31,30, 2026.

BOLI increased $3.5$16.3 million during the threesix months ended MarchJune 31,30, 2026, to $404.7$417.5 million.

Liabilities. Total liabilities decreased $363.3$343.4 million during the threesix months ended MarchJune 31,30, 2026, to $13.50$13.52 billion at period end, primarily due to decreases of $242.2$164.1 million in deposits (including mortgage escrow accounts), $73.0$123.0 million in FHLBNY advances and $41.4$41.3 million in subordinated debt.

Stockholders’ Equity. Stockholders’ equity increased $21.2$44.7 million during the threesix months ended MarchJune 31,30, 2026, to $1.50$1.52 billion at period end, primarily due to net income of $34.6$69.4 million, partially offset by common stock dividends of $10.8$21.8 million, and preferred stock dividends of $1.8 million and other comprehensive loss of $1.6$3.6 million.

Comparison of Operating Results for the Three Months Ended MarchJune 31,30, 2026 and 2025

General. Net income was $34.6$34.8 million during the three months ended MarchJune 31,30, 2026, compared to net income of $21.5$29.7 million for the three months ended MarchJune 31,30, 2025. During the three months ended MarchJune 31,30, 2026, net interest income increased by $18.0 million, income tax expense increased by $6.7 million, non-interest expense decreased by $2.8$17.1 million, the credit loss provision increased by $2.7$4.7 million, non-interest expense increased by $4.4 million, income tax expense increased by $2.6 million, and non-interest income increaseddecreased by $1.7$329 million,thousand, compared to the three months ended MarchJune 31,30, 2025.

The discussion of net interest income for the three months ended MarchJune 31,30, 2026 and 2025 should be read in conjunction with the following tables, which set forth certain information related to the Consolidated Statements of Operations for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated. The average yields and costs were derived by dividing income or expense by the average balance of their related assets or liabilities during the periods represented. Average balances were derived from average daily balances. No tax-equivalent adjustments have been made for interest income exempt from federal, state, and local taxation. The yields include loan fees consisting of amortization of loan origination and commitment fees and certain direct and indirect origination costs, prepayment fees, and late charges that are considered adjustments to yields. Net loan fees included in interest income were $1.5$1.7 million during the three months ended MarchJune 31,30, 2026, compared to $1.1 million during the three months ended MarchJune 31,30, 2025. The increase in net loan fees was primarily due to increases in deferred fees and prepayment penaltypenalties on loans in 2026.

Net interest income. Net interest income was $112.3$115.2 million during the three months ended MarchJune 31,30, 2026, an increase of $18.0$17.1 million from the three months ended MarchJune 31,30, 2025. Average interest-earning assets were $14.20$14.09 billion for the three months ended MarchJune 31,30, 2026, an increase of $1.2$891.3 billionmillion from $12.96$13.20 billion for the three months ended MarchJune 31,30, 2025. The net interest margin was 3.21%3.28% during the three months ended MarchJune 31,30, 2026, up from 2.95%2.98% during the three months ended MarchJune 31,30, 2025.

Interest Income. Interest income was $173.4$175.3 million during the three months ended MarchJune 31,30, 2026, compared to $161.9$167.5 million during the three months ended MarchJune 31,30, 2025. During the three months ended MarchJune 31,30, 2026, interest income increased $11.5$7.7 million from the three months ended MarchJune 31,30, 2025, primarily reflecting increases in interest income of $10.7$9.9 million on business loans, $6.1 million on other short-term investments, $7.4 million on business loans, $1.5$3.2 million on securities and $1.3$1.1 million on one-to-four family residential and coop/condo apartment loans, partially offset by a decrease in interest income of $4.6$6.5 million on multifamily residential and residential mixed-use loansloans, and $3.8$4.7 million on non-owner-occupied commercial real estate loans and $1.3 million of ADC loans.

The increased interest income on business loans was due to a $690.7 million increase in the average balances, partially offset by an 18-basis point decrease in the yield of such loans in the period. The increased interest income on other short-term investments, which is comprised of cash and due from banks and restricted stock, was related to a $1.32$845.8 billionmillion increase in the average balances, partially offset by a 71-basis67-basis point decrease in the yield of such investments in the period. The increased interest income on business loans was due to a $526.5 million increase in the average balances, partially offset by a 16-basis point decrease in the yield of such loans in the period. The increased interest income on securities was related to a $78.9$220.9 million increase in average balances and a 22-basis34-basis point increase in the yield of such securities in the period. The increased interest income on one-to-four family residential and coop/condo apartment loans was related to a $79.8$82.9 million increase in the average balancesbalance and a 15-basis4-basis point increase in the yield of such loans in the period. The decreased interest income on multifamily residential and residential mixed-use loans was related to a $433.0$545.6 million decrease in the average balance,balance partially offset byand a 3-basis4-basis point increasedecrease in the yield of such loans in the period. The decreased interest income on non-owner-occupied commercial real estate loans reflected a $303.8$359.4 million decrease in the average balance, partially offset by a 1-basis point increase in the yield of such loans in the period. The decreased interest income on ADC loans reflected a $45.4 million decrease in the average balance and a 130-basis point decrease in the yield of such loans in the period.

Interest Expense. Interest expense was $61.1$60.1 million during the three months ended MarchJune 31,30, 2026, compared to $67.7$69.5 million during the three months ended MarchJune 31,30, 2025. During the three months ended MarchJune 31,30, 2026, interest expense decreased $6.5$9.4 million, primarily reflecting a decrease in interest expense of $5.7$8.0 million on deposits.

The decreased interest expense on deposits was primarily due to a 58-basis59-basis point decrease in rates paid on savings accounts and a $228.0$241.1 million decrease in average balances of such deposits, a 31-basis point decrease in rates paid on CDs, partially offset by a $132.1 million increasedeposits in the average balance of such deposits, andperiod, a 66-basis64-basis point decrease in rates paid on money market accounts, partially offset by a $685.0$621.3 million increase in average balances of such depositsdeposits, and a 20-basis point decrease in rates paid on interest-bearing checking accounts, partially offset by a $97.3 million increase in the period.average balance of such deposits.

Provision for Credit Losses. We recorded a credit loss provision of $12.3$13.9 million and $9.6$9.2 million during the three months ended MarchJune 31,30, 2026 and 2025, respectively. The $12.3$13.9 million credit loss provision for the three months ended MarchJune 31,30, 2026, was primarily attributable to charge-offs andcharge-offs, provisioning for individually analyzed loans.loans and growth in the business loan portfolio. The $9.6$9.2 million credit loss provision for the three months ended MarchJune 31,30, 2025, was primarily associatedattributable withto provisioningupdates forin individuallythe analyzedmacroeconomic loans.forecast and to the loss driver models.

Non-Interest Income. Non-interest income totaled $11.3 million for the three months ended MarchJune 31,30, 2026, compared to $9.6$11.6 million for the same period in 2025. The increasedecrease was primarily driven by a $1.1$2.0 million loss on sale of loans and other assets during the three months ended June 30, 2026, partially offset by an increase of $1.8 million in service charges and other fees and aan $565$852 thousand increase in BOLI income.

Non-Interest Expense. Non-interest expense totaled $62.8$64.7 million for the three months ended MarchJune 31,30, 2026, compared to $65.5$60.3 million for the same period in 2025. The decreaseincrease was primarily attributable to a $7.2 million pension settlement loss recorded during the three months ended March 31, 2025, with no comparable expense in the current‑year period, partially offsetdriven by an increase of $3.9$3.6 million of salaries and employee benefits.

Non-interest expense was 1.68%1.74% and 1.90%1.72% of average assets during the three months ended MarchJune 31,30, 2026 and 2025, respectively.

Income Tax Expense. Income tax expense was $13.9$13.1 million during the three months ended MarchJune 31,30, 2026, compared to income tax expense of $7.3$10.5 million during the three months ended MarchJune 31,30, 2025. The reported effective tax rate for the three months ended MarchJune 31,30, 2026 and 2025 was 28.7%,27.3%, and 25.3%,26.1%, respectively.