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

As of December 31, 2024,2025, we had total assets of $2.14$2.25 billion, total liabilities of $1.84$1.92 billion, and total shareholders' equity of $300.1$324.5 million. Net income available to common shareholders for 2024the year ended December 31, 2025 was $27.5$37.8 million. In 2024,2025, net income available to common shareholders decreasedincreased 3.3%37.3% over the previous year primarily due to aan decreaseincrease in net interest income, partially offset by an increase in the provision for credit losses, and a decrease in non-interest income, partiallyand offsetan by a decreaseincrease in non-interest expense. At December 31, 2024,2025, total assets increased 5.9%5.0% and total equity increased 5.5%,8.1%, compared to December 31, 2023.2024. Our risk based tier 1 capital ratio was 21.2%20.5% at December 31, 2024.2025. In addition, during the fiscal year ended December 31, 20242025 we returned $8.6$8.4 million of capital to our common shareholders through cash dividends, and we repurchased 200,000300,000 common stock shares at a total cost of $4.3$6.5 million.

Our business operations are subject to risks and uncertainties that could materially affect our operating results. The extent of such impact will depend on future developments, which are highly uncertain. There continues to be various other risks and uncertainties that could impact the Company’s businesses and future results, such as changes to the U.S. economic condition,conditions in the United States, market interest rates, the Federal Reserve Board'sReserve's monetary policy, other government policies, and actions of regulatory agencies. Please refer to "Forward-Looking Statements" above for further information about risks and uncertainties that could affect our operating results.

We recorded net income available to common shareholders of $37.8 million or $3.20 per basic common share and $3.16 per diluted common share, for the year ended December 31, 2025, compared to $27.5 millionmillion, or $2.30 per basic common share and $2.27 per diluted common share, for the year ended December 31, 2024, comparedan to $28.4 million, or $2.38 per basic common share and $2.35 per diluted common share, for the year ended December 31, 2023, a decreaseincrease of $0.9$10.3 million or 3.3%.37.3%.

Net interest income decreasedincreased $5.5$17.8 million, or 8.6%,30.2%, to $76.5 million for the year ended December 31, 2025 compared to $58.7 million for the year ended 2024December compared31, to $64.2 million for the year ended 2023.2024. The decreaseincrease in net interest income was primarily due to an increase in interest expenseincome of $17.9$17.6 million, partiallyand offseta by an increasedecrease in interest incomeexpense of $12.4$0.2 million. Interest income for 20242025 increased to $125.1$142.7 million, an increase of $12.4$17.6 million, or 11.0%,14.0%, from $112.7$125.1 million for 2023,2024, primarily due to an increase in interest and fees on loans of $11.8$17.4 million, or 11.1%.14.7%. Interest and fees on loans increased during the year ended December 31, 2024,2025, due to higher average outstanding loan balances and higher market interest rates. Interest expense increaseddecreased to $66.2 million for 2025, from $66.4 million for 2024, froma $48.5 million for 2023, an increasedecrease of $17.9$0.2 million, or 36.9%.0.3%. The increasedecrease in interest expense was primarily due to ana increasedecrease interest on borrowings, a decrease in borrowing levels and a decrease in market interest ratesrates. The decrease was partially offset by an increase in interest expense on depositdeposits accounts atduring the Bank,year asended wellDecember as31, 2025, due to a change in the deposit mix. In addition, a decrease in non-interest bearing demand balances and an increase in interest-bearing deposit balances contributed to the increase in interest expense during the 2024 fiscal year..

(1) Interest income includes $3.6$4.4 million and $3.8$3.6 million of net fee income for the years ended 2024December 31, 2025 and 2023,2024, respectively.

Our provision for credit losses in each period is driven by net charge-offs and changes to the allowance for credit losses. We recorded a provision for credit losses of $0.7$2.5 million and a recovery for credit losses of $2.1$0.7 million in 20242025 and 2023,2024, respectively. The provision (recovery) for credit losses as a percentage of interest income was 0.58%1.74% and 1.82%0.58% in 20242025 and 2023,2024, respectively.

Our provision for credit losses increased by $2.8$1.8 million in 20242025 compared to 20232024 primarily as a result of an increase in outstanding loan balances, partially offset by a decrease in loss rates. Additionally, the provision for unfunded commitments contributeddecreased toslightly $369.0at thousandDecember of31, 2025, from the increase.prior year. For more information about our provision and allowance for credit losses and our loss experience, see “Risk Management and Asset Quality-Allowance for Credit Losses” and NOTE 4. Loans and Allowance for Credit Losses in the Notes to the Consolidated Financial Statements.

Non-interest income decreased by $2.4$0.9 million to $4.3$3.4 million during the year ended December 31, 20242025 compared to 2023,2024, primarily due to a decrease in feeother income relatedas toa cannabisresult relatedof businessa depositdecrease feesin one-time insurance payments and othersettlements loanreceived fees.in 2024.

The following table displays the components of non-interest expense for 2024the years ended December 31, 2025 and 2023.2024.

Non-interest expense decreasedincreased $9.3$2.0 million to $26.0$28.0 million for the year ended December 31, 2024,2025, from $35.3$26.0 million for 20232024 primarily due to aan decreaseincrease in otherprofessional operating expenseservices of $10.1$0.7 million, partially offset by an increase in compensation and benefits expense of $0.4$0.5 million, and an increase in professional services of $0.4 million. The decrease in other operating expense of $0.5 million, partially offset by a decrease in OREO expense of $0.2 million. The increase in professional services during the year ended December 31, 2025, was primarily drivendue from the recognition ofto a one-time$0.6 contingentmillion lossincrease duringin 2023legal of $9.5 million.fees. The increase in compensation and benefits during the year ended December 31, 2024,expense was primarily due to a $0.4 millionan increase in salaries,salaries of $0.4 million, and a $0.2$0.1 million decrease in deferred loan origination costs attributable to a reduction in the number of loans originated, partially offset by a $0.2 million decrease in SERP expense. The increase in professional fees of $0.4 million was primarily due to a $0.7 million increase in consulting fees attributed to our Bank Secrecy Act compliance, partially offset by a decrease of $0.3 million decrease in legal expense.originated.

Income tax expense decreasedincreased $0.4$2.8 million to $11.6 million on income before taxes of $49.4 million for 2025, compared to income tax expense of $8.8 million on income before taxes of $36.3 million for 2024, compared to income tax expense of $9.2 million on income before taxes of $37.7 million for 2023.2024. The effective income tax rates for 20242025 and 20232024 were 24.2%23.5% and 24.5%,24.2%, respectively.

At December 31, 2024,2025, the Company’s total assets were $2.14$2.25 billion, an increase of $118.7$107.2 million or 5.9%,5.0%, from December 31, 2023.2024. The increase in total assets was primarily attributable to an increase in gross loans outstanding, and an increase in banked owned life insurance ("BOLI"), partially offset by a decrease in cash and cash equivalentsequivalents. and totalGross loans outstanding. Cash and cash equivalents increased $41.2$167.1 million, to $221.5$2.04 millionbillion at December 31, 2024. Total loans outstanding increased $80.8 million at December 31, 2024,2025 primarily due to an increase in residentialthe multi-familyCRE loansnon-owner occupied loan portfolio of $71.4$107.0 million, an increase in the construction portfolio loan balance of $63.0 million, and commercialan owner-occupiedincrease loansin the CRE owner occupied loan portfolio balance of $18.7$22.1 million, partially offset by a decrease in constructionthe loansresidential 1 - 4 family investment portfolio balance of $8.2$29.9 million. BOLI increased $6.3 million at December 31, 2025, primarily due to the purchase of additional insurance policies. The increase in assets was partially offset by a decrease in cash and cash equivalents of $64.7 million, or 29.2%, from December 31, 2024.

Total liabilities were $1.92 billion at December 31, 2025. This represented a $82.8 million, or 4.5%, increase from $1.84 billion at December 31, 2024. This represented a $103.0 million, or 5.9%, increase from $1.74 billion at December 31, 2023. The increase in total liabilities was primarily due to an increase in deposits.deposits, partially offset by a decrease in borrowings. Total deposits increased $78.2$127.6 million, or 5.0%,7.8%, to $1.76 billion at December 31, 2025, from $1.63 billion at December 31, 2024, from $1.55 billion at December 31, 2023.2024. Deposits from the cannabis industries increaseddecreased to $61.9 million at December 31, 2025, from $151.9 million at December 31, 2024,2024. fromTotal $96.7borrowings were $143.4 million at December 31, 2023.2025, Totala borrowings were $188.3 million at December 31, 2024, an increasedecrease of $20.2$44.9 million, compared to December 31, 2023,2024, primarily due to anthe increaserepayment of $30.0 million of subordinated debt, and a decrease in FHLB advances of $20.0$15.0 million.

Cash and cash equivalents increaseddecreased $41.2$64.7 million to $156.9 million at December 31, 2025, from $221.5 million at December 31, 2024, froma $180.4 million at December 31, 2023, an increasedecrease of 22.8%.29.2%. The increasedecrease was mainly due to an increase in depositsloans, and a decrease in borrowings, partially offset by an increase in loans.deposits.

Total investment securities decreased to $13.5 million at December 31, 2025, from $14.8 million at December 31, 2024, from $16.4 million at December 31, 2023, a decrease of $1.6$1.2 million or 9.9%.8.4%. The decrease was primarily due to pay downs of $1.8$1.7 million, partially offset by the purchase of a $0.1$0.5 million valuationcorporate increase.security.

Loans receivable increased to $2.04 billion at December 31, 2025, from $1.87 billion at December 31, 2024, from $1.79 billion at December 31, 2023.2024. The increase was primarily due to an increase in residentialthe multi-familyCRE loansnon-owner occupied loan portfolio of $71.4$107.0 million, an increase in the construction portfolio loan balance of $63.0 million, and commercialan owner-occupiedincrease loansin the CRE owner occupied loan portfolio balance of $18.7$22.1 million, partially offset by a decrease in constructionthe loansresidential 1 - 4 family investment portfolio balance of $8.2$29.9 million.

Allowance for credit losses increased $0.4$2.1 million, to $32.6$34.6 million, or 1.38%,6.4%, at December 31, 2024,2025, from $32.1$32.6 million at December 31, 2023.2024. The increase was primarily due to an increase in the portfolio balance, and an increase in specific reserves for individually evaluated loans, partially offset by a decrease in historical loss rates.

At December 31, 2024,2025, the Bank’s total deposits increased to $1.63$1.76 billion from $1.55$1.63 billion at December 31, 2023,2024, an increase of $78.2$127.6 million, or 5.0%.7.8%. The increase in deposits was primarily attributed to an increase in time deposits of $108.1 million, and money market deposits of $48.4$130.5 million, interest checking deposits of $49.4 million, and non-interest checking of $12.5 million, partially offset by a decrease in non-interestbrokered bearing demandtime deposits of $48.2$41.9 million, time deposits of $11.4 million, and savings deposits of $27.6$11.4 million. DepositsBrokered frominterest checking deposits, included in the cannabisabove businessesbalances, increased to $151.9$45.0 million at December 31, 2024,2025, from $96.7 millionzero at December 31, 2023, an increase of $55.2 million.2024.

At December 31, 2024,2025, total borrowings increaseddecreased $20.2$44.9 million to $143.4 million, from $188.3 million at December 31, 2024, from $168.1 million at December 31, 2023.2024. The increasedecrease in borrowings was primarily due to anthe increaserepayment of $30.0 million of subordinated debt, and a decrease in FHLBNYFHLB advances of $20.0$15.0 million.

Total shareholders’ equity increased to $324.5 million at December 31, 2025, from $300.1 million at December 31, 2024, from $284.3 million at December 31, 2023, an increase of $15.8$24.4 million or 5.5%.8.1%. The increase in total shareholders' equity was primarily due to the retention of earnings from the period, partially offset by the recognition of $8.6$8.5 million of cash dividend,dividends, and repurchases of shares of the Company's common stock in the amount of $4.3$6.5 million during the year ended December 31, 2024.2025.

We also use brokered deposits as a funding source. The Bank joined the IntraFi network to secure an additional alternative funding source. IntraFi provides the Bank an additional source of external funds through their weekly CDARS® settlement process, as well as their ICS® money market product. As of December 31, 2024,2025, the Company has $13.5$56.6 million of brokered deposits from IntraFi. Additionally, we have access to other brokered deposit funding sources that we utilize as a source of additional liquidity. In addition to IntraFi, we utilize Piper Sandler, Wells Fargo, Piper Sandler, and Stonecastle to obtain brokered deposits, and as of December 31, 2024,2025, the Company had $202.2$158.7 million sourced from these broker relationships. While deposit accounts comprise the vast majority of our funding needs, we maintain secured borrowing lines with the FHLBNY and the Federal Reserve Bank ("FRB"). During 2024, the Company reallocated a portion of its eligible collateral from the FHLBNY to the FRB discount window in order to diversify its borrowing capabilities. At December 31, 2024,2025, the Company had a $740.5$611.8 million line of credit from the FHLBNY, of which $145.0$130.0 million was outstanding, $50.0$75.0 million was a letter of credit to secure public deposits, and $545.5$406.8 million was unused. As of December 31, 2024,2025, the Company had a borrowing capacity through the FRB discount window of $252.0$391.3 million. There were no outstanding balances with the FRB as of December 31, 2024.2025.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. At December 31, 20242025 and December 31, 2023,2024, standby letters of credit with customers were $0.6 million and $1.5 million, respectively.million.

At MarchJune 31,30, 2026, we had total assets of $2.21$2.30 billion, and total equity of $335.6$346.1 million. Net income available to common shareholders for the three and six months ended MarchJune 31,30, 2026 was $11.8$12.2 million.million, and $24.1 million, respectively.

Three Months Ended MarchJune 31,30, 2026 Compared to Three Months Ended MarchJune 31,30, 2025

Net Income: Our net income available to common shareholders for the three months ended MarchJune 31,30, 2026 increased $4.1$4.0 million, or 52.3%,47.8%, to $11.8$12.2 million, compared to $7.8$8.3 million for the three months ended MarchJune 31,30, 2025. Earnings per share were $1.01$1.04 per basic common share and $0.99$1.03 per diluted common share for the three months ended MarchJune 31,30, 2026, compared to $0.66$0.70 per basic common share and $0.65$0.69 per diluted common share for the same period last year. The increase was primarily due to an increase in net interest income and a decrease in the provision for credit losses, partially offset by an increase in non-interest expense.

Net Interest Income: Our net interest income was $22.1$23.0 million for the firstsecond quarter of 2026 compared to $16.6$17.9 million for the firstsecond quarter of 2025, an increase of $5.5$5.1 million, or 33.3%.28.8%. Net interest income increased during the three months ended MarchJune 31,30, 2026, primarily due to an increase in interest and fees on loans, and a decrease in interest expense on deposits and borrowings, partially offset by a decrease in interest on deposits with banks. Interest income increased $3.1$3.4 million, or 9.1%,9.8%, during the three months ended MarchJune 31,30, 2026 as compared to the same period in the prior year. The increase in interest income was primarily due to an increase of $4.4$4.2 million in interest and fees on loans, due to higher loan balances and market interest rates. Interest from deposits with banks decreased $1.3$0.8 million during the three months ended MarchJune 31,30, 2026 as compared to the same period in the prior year, primarily due to lower average cash balances held at the Federal Reserve Bank ("FRB") and lower interest earning rates. The increase in net interest income was also due to a decrease in interest expense on deposits during the three months ended MarchJune 31,30, 2026 of $1.7$1.4 million, or 11.5%,9.3%, primarily due to a decrease in interest rates.rates, partially offset by an increase in balances outstanding. Interest expense on borrowings decreased during the three months ended MarchJune 31,30, 2026, by $0.7$0.3 million, or 33.3%,31.3%, as compared to the same period in the prior year, due to a decrease in average balances outstanding and a decrease in interest rates paid on borrowings.borrowings, partially offset by an increase in balances outstanding.

Provision for credit losses: For the three months ended MarchJune 31,30, 2026, the provision for credit losses was $0.2$0.7 million, compared to a provision for credit losses of $0.6$1.0 million for the three months ended MarchJune 31,30, 2025, a decrease of $0.4$0.3 million. The decrease in the provision for credit losses for the three months ended MarchJune 31,30, 2026, was primarily due to lowera growthdecrease in loansloan balance during the three months ended MarchJune 31,30, 2026, as compared to an increase in loan balances during the same period in 2025.2025, partially offset by an increase in charge-offs during the three months ended June 30, 2026. The increase in charge-offs was primarily due to one Commercial Non-owner Occupied, distressed office building, which was repossessed and transferred to Other Real Estate Owned.

Non-interest Income: Our non-interest income was $0.9 million for the three months ended MarchJune 31,30, 2026, an increase of $32.0$61.0 thousand, compared to $0.8 million for the three months ended MarchJune 31,30, 2025. The increase is primarily attributable to an increase in bank owned life insurance ("BOLI") income, compared to the same period in 2025.

Non-interest Expense: Our non-interest expense increased $0.7$0.2 million, or 10.4%,3.6%, for the three months ended MarchJune 31,30, 2026, from the three months ended MarchJune 31,30, 2025, to $7.2$6.9 million. The increase was primarily driven by an increase in compensation and benefits of $0.4$0.3 million, and an increase in other operating expense of $0.4$0.1 million, partially offset by a decrease in professionaldata servicesprocessing expense of $0.1$0.2 million, for the three months ended MarchJune 31,30, 2026, compared to the same period in 2025.

Income Tax: Income tax expense was $3.7$4.0 million on income before taxes of $15.6$16.3 million for the three months ended MarchJune 31,30, 2026, resulting in an effective tax rate of 23.9%,24.9%, compared to income tax expense of $2.5$2.7 million on income before taxes of $10.3$11.0 million for the same period of 2025, resulting in an effective tax rate of 24.5%.24.9%.

At MarchJune 31,30, 2026, the Company’s total assets were $2.21$2.30 billion, aan decreaseincrease of $36.5$53.6 million, or 1.60%,2.40%, from December 31, 2025. The decreaseincrease in total assets was primarily attributable to aan decreaseincrease in cash and cash equivalents of $46.0$47.9 million, and an increase in other real estate owned of $3.9 million, partially offset by ana increasedecrease in net loans of $7.8$3.8 million. Cash and cash equivalents decreasedincreased $46.0$47.9 million, or 29.3%,30.5%, primarily due to a decrease in deposits of $59.9 million, and the increase in loans of $7.8 million, partially offset by an increase in FHLBNY borrowings of $10.0$34.0 million, and the decrease in gross loans of $3.9 million.

Total liabilities were $1.88$1.96 billion at MarchJune 31,30, 2026. This represented a $47.5$32.1 million, or 2.5%,1.7%, decrease,increase, from $1.92 billion at December 31, 2025. The decreaseincrease in total liabilities was primarily due to a decrease in total deposits of $59.9 million, or 3.4%, to $1.70 billion at March 31, 2026, partially offset by an increase in FHLBNY borrowings of $10.0$34.0 million, or 7.7%,26.2%, to $140.0$164.0 million.million Theat decreaseJune in30, deposits was primarily driven by a decrease in non-interestbearing deposits of $32.4 million, time deposits of $24.0 million, brokered time deposits of $14.0 million, and interest-bearing demand deposits of $12.6 million, partially offset by an increase in money market deposits of $22.6 million.2026.

Total equity was $335.6$346.1 million and $324.5 million at MarchJune 31,30, 2026 and December 31, 2025, respectively, an increase of $11.1$21.6 million from December 31, 2025. The increase was primarily due to the retention of earnings, partially offset by the payment of $2.1$4.5 million of cash dividends.

The following table presents certain key condensed balance sheet data as of MarchJune 31,30, 2026 and December 31, 2025:

Cash and cash equivalents decreasedincreased $46.0$47.9 million to $110.9$204.7 million at MarchJune 31,30, 2026 from $156.9 million at December 31, 2025, aan decreaseincrease of 29.3%.30.5%. The decreaseincrease was primarily due to an increase in loans,FHLBNY borrowings, and a decrease in primarilygross non-interestloan bearing and brokered deposit balances, partially offset by an increase in FHLBNY borrowings.balance.

Total investment securities decreasedincreased to $13.1$14.3 million at MarchJune 31,30, 2026, from $13.5 million at December 31, 2025, aan decreaseincrease of $0.4$0.8 million or 2.9%.5.7%. The decreaseincrease was attributed to the purchase of a $1.5 million security for CRA purposes, partially offset by normal pay downs of securities. For detailed information on the composition and maturity distribution of our investment portfolio, see NOTE 3 - Investment Securities in the notes to the unaudited consolidated financial statements.

Loans receivable: Loans receivable increaseddecreased to $2.04$2.03 billion at MarchJune 31,30, 2026, from $2.04 billion at December 31, 2025, ana increasedecrease of $8.1$3.9 million, or 0.4%.0.2%. The increasedecrease was primarily due to increases in the residential - multifamily and construction loan portfolios, partially offset by a decreasedecreases in the residential - 1 to 4 familyfamily, and residential - 1 to 4 family investment loan portfolios.portfolios, partially offset by an increase in the residential - multifamily loan portfolio. Loans receivable as of MarchJune 31,30, 2026 and December 31, 2025, consisted of the following:

TotalAt equityJune 30, 2026, total deposits increased to $335.6$1.76 million at March 31, 2026billion from $324.5$1.76 millionbillion at December 31, 2025, an increase of $11.0$0.9 million, or 3.4%,0.1%. The increase in deposits was primarily due to thean retentionincrease in money market deposits of earnings$49.3 frommillion, theof period,which $13.1 million were brokered deposits, partially offset by thedecrease paymentin time deposits of $2.1$34.5 million, $9.4 million ofin cashchecking dividends.deposits, and $3.3 million in noninterest-bearing deposits.

Liquidity is a measure of our ability to generate cash to support asset growth, meet deposit withdrawals, satisfy other contractual obligations, and otherwise operate on an ongoing basis. At MarchJune 31,30, 2026, our cash position was $110.9$204.7 million. We invest cash that is in excess of our immediate operating needs primarily in our interest-bearing account at the Federal Reserve.

We also use brokered deposits as a funding source. The Bank primarily utilizes brokered relationships with Wells Fargo, Piper Sandler, and Stonecastle. As of MarchJune 31,30, 2026, the Company had $156.6$194.5 million of brokered deposits resulting from these relationships. For an additional source of brokered liquidity, the Bank joined the IntraFi Financial Network. IntraFi provides the Bank an additional source of external funds through their weekly CDARS® settlement process, as well as their ICS® money market product. As of MarchJune 31,30, 2026, the Company had $35.0$50.1 million sourced from IntraFi. While deposit accounts comprise the vast majority of our funding needs, we maintain secured borrowing lines with the FHLBNY and the Federal Reserve Bank ("FRB"). As of MarchJune 31,30, 2026, the Company had lines of credit with the FHLBNY of $651.6$659.2 million, of which $140.0$164.0 million was outstanding, and an additional $100.0$110.0 million from a letter of credit for securing public funds, of which zero was outstanding as of MarchJune 31,30, 2026. The remaining borrowing capacity was $411.6$385.2 million at MarchJune 31,30, 2026. As of MarchJune 31,30, 2026, the Company had a borrowing capacity through the FRB discount window of $400.0$390.6 million. There were no borrowings outstanding from the FRB as of MarchJune 31,30, 2026. Our diversity of funding capacity results in the Bank's ability to cover 138.7%132.8% of estimated uninsured deposits at MarchJune 31,30, 2026.

We had outstanding loan commitments of $143.2$184.3 million at MarchJune 31,30, 2026. Our loan commitments are normally originated with the full amount of collateral. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The funding requirements for such commitments occur on a measured basis over time and would be funded by normal deposit growth.

The following is a discussion of our cash flows for the threesix months ended MarchJune 31,30, 2026 and 2025.

Cash provided by operating activities was $13.0$19.3 million during the threesix months ended MarchJune 31,30, 2026, compared to $7.0$13.8 million for the same period in the prior year. The increase in operating cash flow was primarily due to the increase in net income, and the increase in accrued interest payable and other accrued liabilities, partially offset by the increase in accrued interest receivable and other assets.assets and the decrease in accrued interest payable and other accrued liabilities.

Cash used in investing activities was $8.2$3.7 million during the threesix months ended MarchJune 31,30, 2026, compared to cash used in investing activities of $13.1$64.2 million in the same period last year. The decrease in cash used in the investing activities during the threesix months ended MarchJune 31,30, 2026, was primarily due to the decrease in cash outflow from the origination of loans, and the decrease in the net purchase of FHLBNY restricted stock.

Cash usedprovided inby financing activities was $50.8$32.2 million during the threesix months ended MarchJune 31,30, 2026, compared to cash used in financing activities of $6.4$13.2 million in the same period last year. The increase in cash usedprovided inby financing activities during the threesix months ended MarchJune 31,30, 2026, was primarily due to an increase in FHLBNY borrowings, partially offset by a decrease in noninterest-bearing deposits, and a decrease in the growth of interest-bearing deposits, partially offset by an increase in FHLBNY borrowings.deposits.

We utilize a comprehensive process for assessing the Company’s overall capital adequacy. We actively review our capital strategies in light of current and anticipated business risks, future growth opportunities, industry standards, and compliance with regulatory requirements. The assessment of overall capital adequacy depends on a variety of factors, including asset quality, liquidity, earnings stability, competitive forces, economic conditions, and strength of management. Our objective is to maintain capital at an amount commensurate with our risk profile and risk tolerance objectives, and to meet both regulatory and market expectations. We primarily manage our capital through the retention of earnings. We also use other means to manage our capital. Total equity increased $11.0$21.6 million at MarchJune 31,30, 2026, from December 31, 2025, primarily from the Company’s net income of $11.8$24.1 million for the period, net of common and preferred stock dividends of $2.1$4.5 million.

Under the capital rules issued by the Federal banking agencies, the Company and the Bank elected to exclude the effects of certain Accumulated Other Comprehensive Income (“AOCI”) items from its regulatory capital calculation. At MarchJune 31,30, 2026, the Bank and the Company were both considered “well capitalized”.

The following table presents the tier 1 regulatory capital leverage ratios of the Company and the Bank at MarchJune 31,30, 2026: