INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2026

INVESTMENT SECURITIES

INVESTMENT SECURITIES

4.INVESTMENT SECURITIES

The amortized cost and estimated fair value of securities available for sale are as follows (dollars in thousands):


					Gross			Gross
		Amortized			Unrealized			Unrealized			Estimated
		Cost			Gains			Losses			Fair Value
March 31, 2026
U.S. Treasury		$	44,738		$	134		$	(13)		$	44,859
Mortgage-backed securities:
U.S. Government agency securities			35,999			340			(569)			35,770
Government-sponsored enterprises			38,010			519			(23)			38,506
Collateralized mortgage obligations:
U.S. Government agency securities			20,603			101			(98)			20,606
Government-sponsored enterprises			46,818			252			(64)			47,006
Municipal obligations			14,143			10			(6)			14,147
Total available for sale securities		$	200,311		$	1,356		$	(773)		$	200,894

December 31, 2025
U.S. Treasury		$	54,483		$	275		$	(6)		$	54,752
Mortgage-backed securities:
U.S. Government agency securities			36,743			384			(423)			36,704
Government-sponsored enterprises			38,955			828			—			39,783
Collateralized mortgage obligations:
U.S. Government agency securities			21,009			374			—			21,383
Government-sponsored enterprises			47,929			465			(104)			48,290
Municipal obligations			19,477			42			—			19,519
Total available for sale securities		$	218,596		$	2,368		$	(533)		$	220,431

The Company elected to exclude accrued interest receivable from the amortized cost basis of debt securities. Accrued interest receivable on available for sale debt securities totaled $1.1 million at March 31, 2026 and $1.2 million at December 31, 2025, respectively, and is excluded from the estimate of credit losses and reported in accrued interest receivable in the consolidated statements of condition.

There was no allowance for credit losses for securities available for sale as of March 31, 2026 and December 31, 2025.

The amortized cost and estimated fair value of securities held to maturity are as follows (dollars in thousands):


					Gross			Gross
		Amortized			Unrealized			Unrealized			Estimated			Allowance for			Net Carrying
		Cost			Gains			Losses			Fair Value			Credit Losses			Value
March 31, 2026
Corporate debt securities		$	42,634			478			(1,960)		$	41,152		$	486		$	42,148
Municipal obligations			2,248			—			(6)			2,242			—			2,248
Total held to maturity securities		$	44,882		$	478		$	(1,966)		$	43,394		$	486		$	44,396

December 31, 2025
Corporate debt securities		$	39,637			648			(2,441)		$	37,844		$	452		$	39,185
Municipal obligations			2,336			—			(5)			2,331			—			2,336
Total held to maturity securities		$	41,973		$	648		$	(2,446)		$	40,175		$	452		$	41,521

Accrued interest receivable on held to maturity debt securities totaled $771,000 and $382,000 at March 31, 2026 and December 31, 2025, respectively, and is excluded from the estimate of credit losses and is reported in accrued interest receivable in the consolidated statements of condition.

There were no held to maturity securities that were 30 days or more past due or classified as non-accrual as of March 31, 2026 and December 31, 2025.

The following tables present the activity in the allowance for credit losses on securities held to maturity (dollars in thousands):


		For the Three Months Ended March 31, 2026
		Beginning												Ending
		Balance			Provisions			Charge-offs			Recoveries			Balance
Corporate debt securities		$	452		$	34		$	—		$	—		$	486
Municipal obligations			—			—			—			—			—
Total		$	452		$	34		$	—		$	—		$	486


		For the Three Months Ended March 31, 2025
		Beginning												Ending
		Balance			Provisions			Charge-offs			Recoveries			Balance
Corporate debt securities		$	216		$	59		$	—		$	—		$	275
Municipal obligations			—			—			—			—			—
Total		$	216		$	59		$	—		$	—		$	275

The estimated fair value and gross unrealized losses aggregated by security category and length of time such securities have been in a continuous unrealized loss position, is summarized as follows (dollars in thousands):


		March 31, 2026
		Less than 12 Months						12 Months or Longer						Total
		Estimated			Unrealized			Estimated			Unrealized			Estimated			Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
Securities available for sale:
U.S. Treasury		$	5,037		$	(13)		$	—		$	—		$	5,037		$	(13)
Mortgage-backed securities:
U.S. Government agency securities			—			—			17,594			(569)			17,594			(569)
Government-sponsored enterprises			—			—			10,141			(23)			10,141			(23)
Collateralized mortgage obligations:
U.S. Government agency securities			4,743			(22)			4,931			(76)			9,674			(98)
Government-sponsored enterprises			—			—			33,639			(64)			33,639			(64)
Municipal obligations			1,994			(6)			—			—			1,994			(6)
		$	11,774		$	(41)		$	66,305		$	(732)		$	78,079		$	(773)

Securities held to maturity:
Corporate debt securities		$	9,349		$	(651)		$	14,540		$	(1,309)		$	23,889		$	(1,960)
Municipal obligations			2,242			(6)			—			—			2,242			(6)
		$	11,591		$	(657)		$	14,540		$	(1,309)		$	26,131		$	(1,966)


		December 31, 2025
		Less than 12 Months						12 Months or Longer						Total
		Estimated			Unrealized			Estimated			Unrealized			Estimated			Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
Securities available for sale:
U.S. Treasury		$	—		$	—		$	4,994		$	(6)		$	4,994		$	(6)
Mortgage-backed securities:
U.S. Government agency securities			—			—			18,183			(423)			18,183			(423)
Government-sponsored enterprises			—			—			—			—			—			—
Collateralized mortgage obligations:
U.S. Government agency securities			—			—			—			—			—			—
Government-sponsored enterprises			6,661			(11)			27,763			(93)			34,424			(104)
Municipal obligations			—			—			—			—			—			—
		$	6,661		$	(11)		$	50,940		$	(522)		$	57,601		$	(533)

Securities held to maturity:
Corporate debt securities		$	2,483		$	(17)		$	10,326		$	(2,424)		$	12,809		$	(2,441)
Municipal obligations			2,331			(5)			—			—			2,331			(5)
		$	4,814		$	(22)		$	10,326		$	(2,424)		$	15,140		$	(2,446)

Unrealized losses on securities available for sale have not been recognized into income because the issuers' debt securities are of high credit quality (rated AA or higher), management does not intend to sell, and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the securities. The fair value is expected to recover as the securities approach maturity.

The Company does not believe the available for sale securities that were in an unrealized loss position as of March 31, 2026 and December 31, 2025, which consisted of 22 and 16 individual securities, respectively, represented a credit loss impairment. Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of March 31, 2026 and December 31, 2025, the majority of the available for sale securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are

widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity.

None of the Company’s held to maturity debt securities were past due or on nonaccrual status as of March 31, 2026 and December 31, 2025. There was no accrued interest reversed against interest income for the three months ended March 31, 2026 and 2025, as all securities remained on accrual status. In addition, there were no collateral dependent held to maturity debt securities as of March 31, 2026 and December 31, 2025. An allowance for credit losses on held to maturity debt securities is recorded to account for expected lifetime credit losses.

The following table sets forth information with regard to contractual maturities of debt securities (dollars in thousands). Securities not due at a single maturity date are shown separately.


		March 31, 2026
		Amortized			Estimated
		Cost			Fair Value
Securities available for sale:
Due in one year or less		$	45,307		$	45,429
Due after one to five years			26,864			26,840
Due after five to ten years			9,545			9,525
Due after ten years			118,595			119,100
		$	200,311		$	200,894

Securities held to maturity:
Due in one year or less		$	2,060		$	2,054
Due after one to five years			8,938			9,065
Due after five to ten years			33,884			32,275
		$	44,882		$	43,394

Maturities of mortgage-backed securities and collateralized mortgage obligations are included based on their contractual lives. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There were no sales of securities available for sale for the three months ended March 31, 2026 and 2025.

There were no sales of securities held to maturity for the three months ended March 31, 2026 and 2025.

The following table sets forth information with regard to gains and (losses) on trading securities reported in other noninterest income on the consolidated statement of operations:


		For the
		Three Months Ended
		March 31,
		2026
Net loss recognized during the period on trading securities		$	(180)
Less: Net losses recognized during the period on trading securities sold during the period			(145)
Unrealized losses recognized during reporting period on trading securities still held at reporting date		$	(35)

At March 31, 2026, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of the Company’s equity. As of March 31, 2026 and December 31, 2025, the carrying value of available for sale securities pledged to secure Federal Home Loan Bank of New York (“FHLBNY”) advances and municipal deposits was $196.0 million and $216.4 million, respectively.