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

The holders of our common stock will receive cash dividends if and when declared by our Board of Directors out of legally available funds. The Company has historically paid a quarterly cash dividend to stockholders. During the year ended December 31, 2024,2025, the Company increased the quarterly cash dividends to $0.20 per share on March 20, 2025 from $0.10 per share on March 21, 2024 and $0.15 per share on September 19, 20242024. fromIn $0.06addition, the Company declared a special dividend of $0.20 per share prioron toOctober 2024.6, 2025. Although we have a history of paying cash dividends, we have no obligation to continue paying dividends. Any future determination relating to our dividend policy will be made at the discretion of our board of directors and will depend on a number of factors, including our future earnings, capital requirements and alternative uses for capital, financial condition, future prospects, regulatory restrictions, and other factors that our board of directors may deem relevant. Our principal business operations are conducted through our subsidiary, the Bank, and the ability of the Bank to pay dividends to us will continue to be subject to, and limited by, certain legal and regulatory restrictions. Further, any lenders making loans to us may impose financial covenants that may be more restrictive with respect to dividend payments than the regulatory requirements.

In March 2023, Silicon Valley Bank and Signature Bank experienced large deposit outflows coupled with insufficient liquidity to meet withdrawal demands, resulting in the institutions being placed into FDIC receivership. Additionally, in May 2023, First Republic Bank experienced similar circumstances which resulted in the institution being placed in FDIC receivership. In the aftermath of these events, there has been substantial market disruption and concerns that diminished depositor confidence could spread across the banking industry, leading to deposit outflows that could destabilize other institutions. To strengthen public confidence in the banking system, the FDIC took action to protect funds held in uninsured deposit accounts at Silicon Valley Bank and Signature Bank following the placement of those institutions into receivership. However, the FDIC has not committed to protecting uninsured deposits in other institutions that experience outsized withdrawal demands. At December 31, 2024,2025, we had uninsured deposits totaling $346.9$361.0 million and $115.0$126.2 million in available liquidity, including $78.3$81.2 million in cash, as well as $834.7$768.8 million in borrowing capacity at the FRBNYFRBNY, $35.8 million in borrowing capacity at the FHLBNY, and $8.0 million in borrowing capacity at ACBB, which was sufficient to cover our uninsured deposits as of December 31, 2024.2025. Notwithstanding our significant liquidity, large deposit outflows could adversely affect our financial condition and results of operations and could result in the closure of the Bank. Furthermore, the recent bank failures may result in strengthening of capital and liquidity rules which, if the revised rules apply to us, could adversely affect our financial condition and results of operations.

Total assets increased $245.4$53.9 million, or 13.9%,2.7%, to $2.1 billion at December 31, 2025, from $2.0 billion at December 31, 2024, from $1.8 billion at December 31, 2023.2024. The increase in assets was primarily due to increases in net loans of $226.0$47.8 million, equity securities of $4.6 million, securities held-to-maturity of $3.7 million, and cash and cash equivalents of $9.6$2.9 million, equitypartially securitiesoffset ofby $3.9decreases million,in real estate owned of $3.7$5.1 million,million and otheraccrued assetsinterest receivable of $3.5$1.3 million.

Cash and cash equivalents increased $9.6$2.9 million, or 14.0%,3.7%, to $81.2 million at December 31, 2025 from $78.3 million at December 31, 2024 from $68.7 million at December 31, 2023.2024. The increase in cash and cash equivalents was a result of an increase of $70.0 million in depositsborrowings that funded increases of $270.3$47.8 million,million partiallyin offsetloans, by$4.6 million in equity securities, and $3.7 million in securities held-to-maturity, and a decrease in borrowings of $64.0 million, an increase of $227.0$53.5 million in net loans, dividends to shareholders of $8.7 million, and stock repurchases of $2.4 million.deposits.

Equity securities increased $3.9$4.6 million, or 21.5%,20.8%, to $26.6 million at December 31, 2025 from $22.0 million at December 31, 2024 from $18.1 million at December 31, 2023.2024. The increase in equity securities was attributable to the purchase of $4.0 million in equity securities during the secondyear halfended December 31, 2025 and market appreciation of 2024, offset by market depreciation of $109,000$521,000 due to market interest rate volatility during the year ended December 31, 2024.2025.

Securities held-to-maturity decreasedincreased $1.3$3.7 million, or 7.8%,25.3%, to $18.3 million at December 31, 2025 from $14.6 million at December 31, 2024 from $15.9 million at December 31, 2023 due to $1.3purchases of $4.8 million in municipal bonds, partially offset by $1.1 million in maturities and pay-downs of various investment securities, partially offset by a decrease of $10,000 in the allowance for credit losses for held-to-maturity securities.

The allowance for credit losses related to loans decreased to $4.7 million as of December 31, 2025, from $4.8 million as of December 31, 2024, from $5.1 million as of December 31, 2023.2024. The decrease in the allowance for credit losses related to loans was due to charge-offs totaling $1.3$701,000 million,and offset bynegative provision for credit losses totaling $1.1$272,000, million.offset by recoveries totaling $875,000.

Premises and equipment decreasedincreased $647,000,$572,000, or 2.5%,2.3%, to $25.4 million at December 31, 2025 from $24.8 million at December 31, 2024 from $25.5 million at December 31, 2023 primarily due to the depreciationpurchases of additional fixed assets.assets and the expansion of our Kiryas Joel branch office.

AccruedFederal interestHome receivableLoan Bank stock increased $1.2 million,$13,000, or 9.5%,3.3%, to $13.5$410,000 millionat December 31, 2025 from $397,000 at December 31, 2024 from $12.3 million at December 31, 2023primarily due to an increase in themortgage-related loan portfolio.assets.

RightProperty ofheld usefor assets — operatinginvestment decreased $565,000,$36,000, or 12.4%,2.6%, to $4.0$1.3 million at December 31, 2025 from $1.4 million at December 31, 2024 from $4.6 million at December 31, 2023, primarily due to amortization.the amortization of property.

AdvanceRight paymentsof byuse borrowersassets for— taxesoperating andincreased insurance decreased $402,000,$655,000, or 19.9%,16.4%, to $1.6$4.7 million at December 31, 20242025 from $2.0$4.0 million at December 31, 20232024, primarily due primarily to realthe estatephysical taxexpansion paymentsof fora borrowers.branch office and the resulting amendment of the operating lease and the renewal of another branch operating lease, partially offset by the amortization of the right of use assets.

LeaseBorrowings liability – operating decreased $517,000, or 11.2%,increased to $4.1$70.0 million at December 31, 20242025 from $4.6 millionnone at December 31, 2023,2024 due primarily dueto management’s strategy to amortization.diversify funding sources.

Accounts payable and accrued expenses increased $972,000,$2.8 million, or 7.2%,19.2%, to $17.3 million at December 31, 2025 from $14.5 million at December 31, 2024 from $13.6 million at December 31, 2023 due primarily to increases in accrued expense of $812,000, accrued dividends payable and other payables of $856,000 and$673,000, deferred compensation of $729,000, partially offset by decreases in$615,000, accrued borrowing interest expense of $102,000, suspense account for loan closings of $99,000,$512,000, and accrued expense of $79,000. Thethe allowance for credit losses for off-balance sheet commitments decreasedof $334,000,$175,000, orpartially 32.1%,offset toby $704,000a atdecrease Decemberin 31,suspense 2024account-loan fromclosings $1.0of million at December 31, 2023.$12,000.

As of December 31, 20242025 and 2023,2024, the aggregate amount of uninsured deposits (deposits in amounts greater than or equal to $250,000, which is the maximum amount for federal deposit insurance) was $346.9$361.0 million and $344.8$346.9 million, respectively. In addition, as of December 31, 2024,2025, the aggregate amount of all our uninsured certificates of deposit was $187.2$172.0 million. We have no deposits that are uninsured for any reason other than being in excess of the maximum amount for federal deposit insurance.

The following tables set forth average balance sheets, average yields and costs, and certain other information for the years indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Deferred loan feescost totaled $49,000$268,000 and deferred loan costsfees totaled $176,000$49,000 for the years ended December 31, 20242025 and 2023,2024, respectively. Loan balances exclude loans held for sale.

Net income for the year ended December 31, 2025 was $44.4 million compared to net income of $47.1 million for the year ended December 31, 2024. Net income for the year ended December 31, 2025 was lower than net income for the year ended December 31, 2024 was $47.1 million compared to net income of $46.3 million for the year ended December 31, 2023. Net income for the year ended December 31, 2024 was greater than the year ended December 31, 2023 primarily due to ana increasedecrease in net interest income and provisionan forincrease creditin lossesnon-interest reduction,expense, partially offset by a decrease in non-interestthe income,provision for credit losses, an increase in non-interest expenses,income, and ana increasedecrease in income tax expense.

TheTotal averageinterest balancesand ofdividend our non-interest bearing demand depositsincome decreased by $44.2$5.9 million, or 13.7%,3.7%, fromto $322.2$154.1 million for the year ended December 31, 20232025 tofrom $278.0$160.0 million for the year ended December 31, 2024. NetThe decrease in interest marginand decreaseddividend income was due to a decrease in the yield on interest-earning assets by 7971 basis points,points orfrom 12.3%,8.75% for the year ended December 31, 2024 to 5.62% compared to 6.41%8.04% for the year ended December 31, 2023.2025, Thepartially decreaseoffset in the net interest margin was due toby an increase in the average balance of interest earninginterest-earning assets of $312.3 million or 20.6% that outpaced an increase in the net interest income of $5.6$88.2 million, or 5.8%.4.8%, to $1.9 billion for the year ended December 31, 2025 from $1.8 billion for the year ended December 31, 2024.

Credit Loss Expense. A credit loss expense reduction of $740,000$97,000 was recorded for the year ended December 31, 2024 as2025 compared to a credit loss expense of $972,000 for the year ended December 31, 2023. The credit loss expense of $740,000 for the year ended December 31, 20242024. The credit loss expense reduction of $97,000 for the year ended December 31, 2025 was comprised of a credit loss expense reduction for loans of $1.0 million, partially$272,000, offset by a credit loss expense reduction for off-balance sheet commitments of $334,000 and a credit loss expense reduction for held-to-maturity investment securities of $10,000.$175,000.

The credit loss expense of $972,000$740,000 for the year ended December 31, 20232024 was comprised of a credit loss expense for loans of $1.5$1.0 million and credit loss expense for held-to-maturity investment securities of $5,000,million, partially offset by a credit loss expense reduction for off-balance sheet commitments of $548,000.$334,000 and a credit loss expense reduction for held-to-maturity investment securities of $10,000.

Non-interest income for the year ended December 31, 2025 was $4.1 million compared to non-interest income of $2.8 million for the year ended December 31, 2024. The decreaseincrease in total non-interest income of $960,000,$1.3 million, or 25.6%,47.1%, was primarily due to decreasesincreases of $458,000 in investment advisory fees, $403,000$686,000 in unrealized gains (losses)gain on equity securities, and $357,000 in BOLI income, partially offset by increases of $207,000$616,000 in other loan fees and service charges, $40,000and from$39,000 sale/in BOLI income, partially offset by decreases of $28,000 in net gain on disposition of fixed assets,assets and $11,000$2,000 in miscellaneous other non-interest income.

For information regarding the Company’s risk factors, refer to “Item 1A: Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on March 13, 2026. As of MarchJune 31,30, 2026, the risk factors of the Company have not changed materially from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Total assets decreasedincreased $38.4$51.7 million, or 1.9%,2.5%, to $2.0$2.1 billion at MarchJune 31,30, 2026, from $2.1 billion at December 31, 2025. The decreaseincrease in assets was primarily due to decreasesan increase in net loans of $31.8$59.4 million, partially offset by a decrease in cash and cash equivalents of $5.0 million, and other assets of $2.0$7.8 million.

Cash and cash equivalents decreased $5.0$7.8 million, or 6.1%,9.6%, to $76.1$73.4 million at MarchJune 31,30, 2026 from $81.2 million at December 31, 2025. The decrease in cash and cash equivalents partially funded athe decreaseincrease of $50.0$59.4 million in borrowings.net loans.

Equity securities increased $879,000,$757,000, or 3.3%,2.8%, to $27.4$27.3 million at MarchJune 31,30, 2026 from $26.6 million at December 31, 2025. The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the threesix months ended MarchJune 31,30, 2026, partially offset by market depreciation of $121,000$243,000 due to market interest rate volatility during the threesix months ended MarchJune 31,30, 2026.

Securities held-to-maturity decreased $150,000,$564,000, or 0.8%,3.1%, to $18.2$17.8 million at MarchJune 31,30, 2026 from $18.3 million at December 31, 2025 due to pay-downs of various investment securities and an increase of $9,000 to the allowance for credit losses for held-to-maturity securities, partially offset by the purchase of $470,000 in municipal securities.

OtherLoans, assetsnet decreasedof $2.0the allowance for credit losses, increased $59.4 million, or 18.0%,3.2%, to $9.0$1.9 millionbillion at MarchJune 31,30, 2026 from $11.0$1.9 millionbillion at December 31, 20252025. dueThe toincrease in loans consisted of an increase of $67.2 million in construction loans, partially offset by decreases of $4.9 million in multi-family loans, $2.2 million in taxnon-residential assets,loans, partially offset by increases of $143,000$200,000 in prepaidmixed-use expensesloans, $69,000 in one-to-four family loans, $23,000 in consumer loans, and $57,000$3,000 in suspensecommercial accounts.and industrial loans.

Advance payments by borrowers for taxes and insurance increased $572,000,$210,000, or 24.3%,8.9%, to $2.9$2.6 million at MarchJune 31,30, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate tax payments from borrowers.

Borrowings decreasedincreased $50.0$120.0 million, or 71.4%,171.4%, to $20.0$190.0 million at MarchJune 31,30, 2026 from $70.0 million at December 31, 2025 due primarily to management’s strategy to reduce the cost of funds.funds and lessen reliance on brokered deposits and non-brokered listing service deposits.

Lease liability – operating decreased $163,000,$329,000, or 3.4%,6.9%, to $4.6$4.5 million at MarchJune 31,30, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.

Accounts payable and accrued expenses decreasedincreased $2.8 million,$980,000, or 15.9%,6.0%, to $14.5$18.6 million at MarchJune 31,30, 2026 from $17.3 million at December 31, 2025 due primarily to decreasesincreases in accruedaccounts expensepayable of $2.9$1.3 million and accrued interest expense of $438,000, partially offset by increases inmillion, suspense account – loan closings of $217,000,$322,000, deferred compensation of $158,000,$291,000, the allowance for credit losses for off-balance sheet commitments of $284,000, and accountsaccrued payableinterest expense of $40,000.$107,000, partially offset by a decrease in accrued expenses of $1.0 million.

Stockholders’ equity increased $4.6$10.9 million, or 1.3%3.1% to $356.3$362.6 million at MarchJune 31,30, 2026, from $351.7 million at December 31, 2025. The increase in stockholders’ equity was due to net income of $10.0$19.7 million for the threesix months ended MarchJune 31,30, 2026, an increase of $178,000 in earned employee stock ownership plan shares coupled with a reduction of $130,000 in unearned employee stock ownership plan shares, the amortization expense of $547,000$1.1 million relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, an increase of $371,000 in earned employee stock ownership plan shares coupled with a reduction of $261,000 in unearned employee stock ownership plan shares, $37,000 in stock options exercised, and $8,000$25,000 in other comprehensive income. These increases were offset by dividends declared of $6.0 million and stock repurchases and excise taxes of $3.6 million and dividends declared of $2.7$4.7 million.

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

Net income for the three months ended MarchJune 31,30, 2026 was $10.0$9.8 million compared to net income of $10.6$11.2 million for the three months ended MarchJune 31,30, 2025. The decrease in net income of $615,000,$1.4 million, or 5.8%,12.3%, between periods was primarily due to a decreasecredit loss expense of $439,000$860,000 infor non-interestthe income,three anmonths increaseended ofJune $260,00030, in2026 non-interestcompared expense, a decrease of $130,000 in net interest income, and an increase of $23,000 in income tax expense, partially offset byto no credit loss expense for the three months ended MarchJune 31,30, 2026 compared to2025, a credit loss expensedecrease of $237,000$424,000 forin thenet threeinterest monthsincome, endeda Marchdecrease 31,of 2025.$216,000 in non-interest income, and an increase of $110,000 in non-interest expense, partially offset by a decrease of $235,000 in income tax expense.

Net interest income was $24.1$24.7 million for the three months ended MarchJune 31,30, 2026, as compared to $24.3$25.1 million for the three months ended MarchJune 31,30, 2025. The decrease in net interest income of $130,000,$424,000, or 0.5%,1.7%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense caused by a decrease in the yield on interest-earning assets that exceeded the decrease in the cost of funds for interest-bearing liabilities.

Total interest and dividend income decreased $2.2$2.0 million, or 5.9%,5.2%, to $36.0$36.1 million for the three months ended MarchJune 31,30, 2026 from $38.2$38.1 million for the three months ended MarchJune 31,30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets ofby 6160 basis points from 8.05%8.11% for the three months ended MarchJune 31,30, 2025 to 7.44%7.51% for the three months ended MarchJune 31,30, 2026, partially offset by an increase in the average balance of interest-earning assets of $35.2$43.8 million, or 1.9%,2.3%, to $1.9 billion for the three months ended MarchJune 31,30, 2026 from $1.9 billion for the three months ended MarchJune 31,30, 2025.

Interest expense decreased $2.1$1.6 million, or 15.1%,12.0%, to $11.8$11.4 million for the three months ended MarchJune 31,30, 2026 from $13.9$13.0 million for the three months ended MarchJune 31,30, 2025. The decrease in interest expense was due to a decrease in the cost of interest-bearing liabilities by 5843 basis points from 4.05%3.88% for the three months ended MarchJune 31,30, 2025 to 3.47%3.45% for the three months ended MarchJune 31,30, 2026. The decrease in interest expense was also due to a decrease in the average balance of interest-bearing liabilities of $9.9$16.0 million, or 0.7%,1.2%, to $1.4$1.3 billion for the three months ended MarchJune 31,30, 2026 from $1.4$1.3 billion for the three months ended MarchJune 31,30, 2025.

Our net interest margin decreased 1221 basis points, or 2.4%,3.9%, to 4.99%5.14% for the three months ended MarchJune 31,30, 2026 compared to 5.11%5.35% for the three months ended MarchJune 31,30, 2025. The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities.

The credit loss expense of $237,000$860,000 for the three months ended MarchJune 31,30, 20252026 was comprised of credit loss expense for loans of $62,000 and$680,000, credit loss expense for off-balance sheet commitments of $175,000.$171,000, and credit loss expense for held-to-maturity securities of $9,000. The credit loss expense for loans of $62,000$680,000 for the three months ended MarchJune 31,30, 20252026 was primarily due to an increase in the multi-familyloan portfolio and increased credit risk in commercial and industrial loans due to a $500,000 loan portfolio.charge-off. The credit loss expense for off-balance sheet commitments of $175,000$171,000 for the three months ended MarchJune 31,30, 20252026 was primarily due to an increase in unfunded off-balance sheet commitments. The credit loss expense for held-to-maturity securities of $9,000 for the three months ended June 30, 2026 was primarily due to an increase in the municipal bond portfolio.

With respect to the allowance for credit losses for loans, we charged-off $27,000$520,000 during the quarter ended MarchJune 31,30, 2026, as compared to charge-offs of $117,000$485,000 during the quarter ended MarchJune 31,30, 2025. The charge-offs during boththe periodsquarter ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $20,000 against various unpaid overdrafts in our demand deposit accounts. The charge-offs during the quarter ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.

We recorded no recoveries during the quarter ended MarchJune 31,30, 2026 compared to recoveries of $352,000$82,000 during the quarter ended MarchJune 31,30, 2025. The recoveries of $352,000$82,000 during the quarter ended MarchJune 31,30, 2025 were comprised of recoveries of $350,000 regarding a previously charged-off non-residential mortgage loan and $2,000 from a previously charged-off unpaid overdraft on a demand deposit account.

Non-interest income for the three months ended MarchJune 31,30, 2026 was $796,000$642,000 compared to non-interest income of $1.2 million$858,000 for the three months ended MarchJune 31,30, 2025. The decrease of $439,000,$216,000, or 35.5%,25.2%, in total non-interest income was primarily due to decreases of $421,000$173,000 in unrealized gain/(loss) on equity securities and $71,000$62,000 in other loan fees and service charges, partially offset by increases of $41,000$15,000 in BOLI income and $4,000 in miscellaneous other non-interest income and $12,000 in BOLI income.

The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of $121,000$122,000 on equity securities during the quarter ended MarchJune 31,30, 2026 compared to an unrealized gain of $300,000$51,000 on equity securities during the quarter ended MarchJune 31,30, 2025. The unrealized loss of $121,000$122,000 and unrealized gain of $300,000$51,000 on equity securities during the quarters ended MarchJune 31,30, 2026 and 2025, respectively, were due to market interest rate volatility during both periods.

The decrease of $71,000$62,000 in other loan fees and service charges was due to a decreasedecreases of $143,000$82,000 in miscellaneousloan loanservice charges and fees, partially offset by an increase of $72,000$20,000 in ATM/debit card/ACH fees. The increase of $41,000 in miscellaneous other non-interest income was due to general accrual adjustments during the quarter. The increase of $12,000$15,000 in BOLI income was due to an increase in the yield on BOLI assets. The increase of $4,000 in miscellaneous other non-interest income was due to increases in miscellaneous operating income during the quarter.

Other non-interest operatingNon-interest expense decreasedincreased $84,000,$110,000, or 2.9%,1.0%, to $2.8$10.6 million for the three months ended MarchJune 31,30, 2026 from $2.9$10.5 million for the three months ended MarchJune 31,30, 20252025. dueThe mainlyincrease toresulted decreasesprimarily from increases of $105,000$291,000 in miscellaneous other non-interestoperating expense, $24,000$166,000 in recruitmentsalaries expense,and $21,000employee benefits, and $44,000 in office supplies, $16,000 in telephoneoccupancy expense, $12,000 in consulting fees, and $8,000 in audit and accounting expense. These decreases were partially offset by increasesdecreases of $31,000$247,000 in servicereal contractsestate owned expense, $27,000$79,000 in legaladvertising fees,expense, $21,000$33,000 in directors,outside officersdata processing expense, and employees expense, $19,000$32,000 in directors compensation, and $6,000 in insuranceequipment expense.

The decreaseincrease of $105,000$331,000 in miscellaneous other non-interest expense was mainly due to decreasesincreases of $112,000 in regulatory fees, $19,000$314,000 in miscellaneous expenses,charge-offs, $12,000 in dues and subscriptions, $3,000$49,000 in public company expenses,expense, and $3,000 in postage expenses, partially offset by increases of $23,000 in miscellaneous charge-offs, $12,000 in loan related expenses, and $10,000 in check and correspondence bank charges.charges, Regulatorypartially feesoffset decreasedby $112,000,a ordecrease 13.2%,of to$44,000 $738,000in formiscellaneous theother threenon-interest monthsexpense. endedThe Marchincrease 31,of 2026$314,000 fromin $850,000miscellaneous forcharge-offs the three months ended March 31, 2025was due to aan reductionincrease in thecustomer Bank’sfraud riskinvolving profilechecks betweenand periods.debit cards.

AdvertisingOccupancy expense decreasedincreased $59,000,$44,000, or 57.7%,5.9%, to $43,000$787,000 for the three months ended MarchJune 31,30, 2026 from $102,000$743,000 for the three months ended MarchJune 31,30, 2025 primarily due to arepairs decreaseand inmaintenance at various marketingoffices campaigns.and increased utilities cost.

We recorded income tax expense of $4.1$4.0 million and $4.3 million for boththe three months ended MarchJune 31,30, 2026 and 2025, respectively. For the three months ended MarchJune 31,30, 2026, we had approximately $248,000$252,000 in tax exempt income, compared to approximately $204,000$210,000 in tax exempt income for the three months ended MarchJune 31,30, 2025. Our effective income tax rate was 29.2%29.1% for the three months ended MarchJune 31,30, 2026 compared to 27.8%27.6% for the three months ended MarchJune 31,30, 2025.