Ponce Financial Group earns $18.2M in Q3 2026

A discrete $10.5 million deferred-tax benefit contributed to quarterly earnings, while a Treasury preferred-stock repurchase remains conditional.

Available on EDGAR 11/04/2026 - 04:17 PM EST Accepted by SEC EDGAR 11/04/2026 - 04:16 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

Ponce Financial Group, Inc. reported third-quarter 2026 net income of $18.249 million, compared with $6.508 million in the same quarter of 2025. Net interest income was $33.989 million, versus $25.248 million. Quarterly results included a $10.5 million discrete income tax benefit after the company concluded its New York State and New York City deferred tax assets were more likely than not to be realized and released the related valuation allowance.

At September 30, 2026, net loans were $3,081.101 million and deposits were $2,367.708 million. The company met the threshold conditions as of June 30, 2026 to exercise its option to repurchase all 225,000 preferred shares held by the Treasury; exercise remains subject to other eligibility conditions. The company presently expects the purchase price to be at a substantial discount from face value, but said there can be no assurance if and when the repurchase will be completed.

2 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 0 points

How the balance works

Positive

• Moderate pointQuarterly net income: $18.249 million, versus $6.508 million in 2025.
• Minor pointNine-month operating cash flow: $35.358 million, versus $20.653 million in 2025.

Negative

• None.

Filing Explained

At September 30, Treasury’s 225,000 preferred shares were still outstanding; the shares carry a $1,000-per-share liquidation preference that remains until any repurchase closes.

Key Figures

Net income: $18.249 million Net interest income: $33.989 million Basic earnings per common share: $0.78 per share +4 more

7 metrics

Net income $18.249 million Three months ended September 30, 2026; $6.508 million in 2025

Net interest income $33.989 million Three months ended September 30, 2026; $25.248 million in 2025

Basic earnings per common share $0.78 per share Three months ended September 30, 2026; $0.27 in 2025

Discrete income tax benefit $10.5 million Three and nine months ended September 30, 2026

Loans receivable, net $3,081.101 million As of September 30, 2026

Deposits $2,367.708 million As of September 30, 2026

Net cash provided by operating activities $35.358 million Nine months ended September 30, 2026; $20.653 million in 2025

Key Terms

discrete income tax benefit, valuation allowance, Deep Impact Condition, Qualified Lending Condition, +1 more

5 terms

discrete income tax benefit financial

"recognized as a discrete income tax benefit of $10.5 million"

valuation allowance financial

"released the valuation allowance previously recorded against those assets"

A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.

Deep Impact Condition financial

"met the Deep Impact Condition"

Qualified Lending Condition financial

"the Qualified Lending Condition"

fair value option financial

"accounted for under the fair value option"

An accounting election that lets a company measure eligible financial assets and liabilities at their current market price, recording gains and losses in the income statement as those prices move. For investors it matters because choosing the fair value option makes reported profits and asset values respond immediately to market swings—like revaluing a house to today’s sale price—so it can increase earnings volatility while giving a more up‑to‑date view of value.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was PDLB's net income in the third quarter of 2026?

Ponce Financial Group reported net income of $18.249 million for the three months ended September 30, 2026, compared with $6.508 million for the same 2025 quarter. The quarter included a $10.5 million discrete income tax benefit from releasing a valuation allowance against New York State and New York City deferred tax assets.

What are the conditions for PDLB to repurchase its Treasury-held preferred stock?

The company met the Deep Impact Condition after reporting 16 consecutive qualifying quarters, satisfying a threshold condition as of June 30, 2026. The option also requires other eligibility conditions, including continued qualification as a CDFI or MDI and compliance with applicable agreements and legal and regulatory criteria. If completed, closing would occur 30 to 90 days after all applicable conditions are satisfied.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2026

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-41255

Ponce Financial Group, Inc.

(Exact Name of Registrant as Specified in its Charter)

Maryland	87-1893965
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2244 Westchester Avenue Bronx, NY	10462
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (718) 931-9000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, par value $0.01 per share		PDLB		The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer		☐		Accelerated filer		☒
Non-accelerated filer		☐		Smaller reporting company		☐
Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 3, 2026, the registrant had 24,188,501 shares of common stock, $0.01 par value per share, outstanding.

Table of Contents

Table of Contents

				Page
PART I.		FINANCIAL INFORMATION		1
Item 1.		Consolidated Financial Statements		1
		Consolidated Statements of Financial Condition (Unaudited)		1
		Consolidated Statements of Operations (Unaudited)		2
		Consolidated Statements of Comprehensive Income (Unaudited)		3
		Consolidated Statements of Stockholders’ Equity (Unaudited)		4
		Consolidated Statements of Cash Flows (Unaudited)		5
		Notes to Consolidated Financial Statements (Unaudited)		6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		32
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		58
Item 4.		Controls and Procedures		58
PART II.		OTHER INFORMATION		59
Item 1.		Legal Proceedings		59
Item 1A.		Risk Factors		59
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		59
Item 3.		Defaults Upon Senior Securities		59
Item 4.		Mine Safety Disclosures		59
Item 5.		Other Information		59
Item 6.		Exhibits		60
Signatures				61

i

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements.

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

September 30, 2026 and December 31, 2025

(Dollars in thousands, except share data)

		September 30,				December 31,
		2026				2025
		(unaudited)
ASSETS
Cash and due from banks:
Cash		$	27,725			$	28,511
Interest-bearing deposits			104,486				97,643
Total cash and cash equivalents			132,211				126,154
Available-for-sale securities, at fair value (Note 3)			79,475				92,196
Held-to-maturity securities, net of allowance for credit losses of $206 at September 30, 2026 and $236 at December 31, 2025; at amortized cost (fair value of $228,857 at September 30, 2026 and $268,875 at December 31, 2025) (Note 3)			241,176				272,982
Placement with banks			249				249
Mortgage loans held for sale, at fair value (Note 4)			3,701				3,388
Loans receivable, net of allowance for credit losses of $29,168 at September 30, 2026 and $25,449 at December 31, 2025 (Note 5)			3,081,101				2,599,258
Accrued interest receivable			21,624				17,905
Premises and equipment, net			10,924				15,638
Right of use assets (Note 6)			26,331				27,583
Federal Home Loan Bank of New York (FHLBNY) stock, at cost			34,064				29,309
Federal Reserve Bank of New York (FRBNY) stock, at cost			10,725				10,698
Deferred tax assets			25,770				11,501
Other assets			19,326				17,109
Total assets		$	3,686,677			$	3,223,970
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits (Note 7)		$	2,367,708			$	2,046,635
Borrowings (Note 8)			696,100				596,100
Operating lease liabilities			28,171				29,353
Accrued interest payable			3,862				3,788
Other liabilities			12,576				6,545
Total liabilities			3,108,417				2,682,421
Commitments and contingencies (Note 10)
Stockholders' Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized:
Series A, senior non-cumulative perpetual, $1,000 per share liquidation preference, 225,000 shares issued and outstanding as of September 30, 2026 and December 31, 2025			225,000				225,000
Common stock, $0.01 par value; 200,000,000 shares authorized; 24,886,711 shares issued at both September 30, 2026 and December 31, 2025; 24,187,901 shares outstanding as of September 30, 2026 and 24,135,926 shares outstanding as of December 31, 2025			249				249
Treasury stock, at cost; 698,810 shares as of September 30, 2026 and 750,785 shares as of December 31, 2025			(5,738	)			(6,164	)
Additional paid-in-capital			211,317				208,604
Retained earnings			169,855				135,332
Accumulated other comprehensive loss (Note 13)			(12,645	)			(10,820	)
Unearned compensation ─ ESOP; 1,067,936 shares as of September 30, 2026 and 1,168,244  shares as of December 31, 2025			(9,778	)			(10,652	)
Total stockholders' equity			578,260				541,549
Total liabilities and stockholders' equity		$	3,686,677			$	3,223,970

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

1

Table of Contents

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

Three and Nine Months Ended September 30, 2026 and 2025

(Dollars in thousands, except share data)

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2026				2025				2026				2025
Interest and dividend income:
Interest on loans receivable		$	52,910			$	41,486			$	143,727			$	118,913
Interest on deposits due from banks			901				978				2,625				3,453
Interest and dividend on securities and FHLBNY stock			3,693				4,383				11,466				14,338
Total interest and dividend income			57,504				46,847				157,818				136,704
Interest expense:
Interest on certificates of deposit			7,313				6,553				20,513				21,689
Interest on other deposits			10,430				9,996				28,604				27,608
Interest on borrowings			5,772				5,050				16,425				15,530
Total interest expense			23,515				21,599				65,542				64,827
Net interest income			33,989				25,248				92,276				71,877
Provision for credit losses (Note 3) (Note 5)			3,219				1,364				7,023				2,705
Net interest income after provision for credit losses			30,770				23,884				85,253				69,172
Non-interest income:
Service charges and fees			611				539				1,750				1,575
Brokerage commissions			—				8				—				12
Late and prepayment charges			232				385				1,096				1,612
Income on sale of mortgage loans			188				166				469				483
Income on sale of SBA loans			—				—				—				404
Grant income			—				429				—				857
Loss on real property held for sale			(1,166	)			—				(1,166	)			—
Other			985				(35	)			2,270				990
Total non-interest income			850				1,492				4,419				5,933
Non-interest expense:
Compensation and benefits			10,509				7,868				28,242				23,275
Occupancy and equipment			3,879				3,934				11,452				11,754
Data processing expenses			1,202				1,296				3,616				3,636
Direct loan expenses			89				155				397				784
Insurance and surety bond premiums			332				318				997				930
Office supplies, telephone and postage			147				170				492				514
Professional fees			1,305				1,409				4,121				4,140
Marketing and promotional expenses			144				184				562				533
Federal deposit insurance and regulatory assessment			495				266				1,312				1,273
Other operating expenses			1,134				1,018				3,420				3,536
Total non-interest expense			19,236				16,618				54,611				50,375
Income before income taxes			12,384				8,758				35,061				24,730
(Benefit) provision for income taxes			(5,865	)			2,250				(306	)			6,163
Net income		$	18,249			$	6,508			$	35,367			$	18,567
Dividends on preferred shares			281				281				844				844
Net income available to common stockholders		$	17,968			$	6,227			$	34,523			$	17,723
Earnings per common share (Note 9):
Basic		$	0.78			$	0.27			$	1.50			$	0.78
Diluted		$	0.76			$	0.27			$	1.47			$	0.77
Weighted average common shares outstanding (Note 9):
Basic			23,086,892				22,766,195				23,043,250				22,715,620
Diluted			23,650,370				23,135,448				23,496,728				22,992,655

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

Three and Nine Months Ended September 30, 2026 and 2025

(In thousands)

		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Net income		$	18,249			$	6,508			$	35,367			$	18,567
Net change in unrealized gain on securities:
Unrealized (loss) gain			(2,848	)			1,852				(2,692	)			4,711
Income tax effect			2,256				(391	)			2,222				(1,000	)
Valuation allowance reduction, net, for deferred tax asset in net income			(1,355	)			—				(1,355	)			—
Total other comprehensive (loss) income, net of tax			(1,947	)			1,461				(1,825	)			3,711
Total comprehensive income			16,302				7,969				33,542				22,278
Less: Dividends on preferred shares			281				281				844				844
Total comprehensive income available to common stockholders		$	16,021			$	7,688			$	32,698			$	21,434

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity (Unaudited)

Three and Nine Months Ended September 30, 2026 and 2025

(Dollars in thousands, except share data)

																														Accumulated				Unallocated
																		Treasury				Additional								Other				Common
		Preferred Stock								Common Stock								Stock,				Paid-in				Retained				Comprehensive				Stock
		Shares				Amount				Shares				Amount				At Cost				Capital				Earnings				Loss				of ESOP				Total
Balance, December 31, 2025			225,000			$	225,000				24,135,926			$	249			$	(6,164	)		$	208,604			$	135,332			$	(10,820	)		$	(10,652	)		$	541,549
Net income			—				—				—				—				—				—				8,623				—				—				8,623
Preferred stock dividend			—				—				—				—				—				—				(281	)			—				—				(281	)
Other comprehensive income, net of tax			—				—				—				—				—				—				—				140				—				140
Release of restricted stock units			—				—				26,094				—				214				(214	)			—				—				—				—
Exercise of stock options			—				—				25,881				—				212				10				—				—				—				222
ESOP shares committed to be released (33,436 shares)			—				—				—				—				—				267				—				—				291				558
Share-based compensation			—				—				—				—				—				552				—				—				—				552
Balance, March 31, 2026			225,000			$	225,000				24,187,901			$	249			$	(5,738	)		$	209,219			$	143,674			$	(10,680	)		$	(10,361	)		$	551,363
Net income			—				—				—				—				—				—				8,495				—				—				8,495
Preferred Stock Dividend			—				—				—				—				—				—				(282	)			—				—				(282	)
Other comprehensive loss, net of tax			—				—				—				—				—				—				—				(18	)			—				(18	)
ESOP shares committed to be released (33,436 shares)			—				—				—				—				—				375				—				—				292				667
Share-based compensation			—				—				—				—				—				745				—				—				—				745
Balance, June 30, 2026			225,000			$	225,000				24,187,901			$	249			$	(5,738	)		$	210,339			$	151,887			$	(10,698	)		$	(10,069	)		$	560,970
Net income			—				—				—				—				—				—				18,249				—				—				18,249
Preferred Stock Dividend			—				—				—				—				—				—				(281	)			—				—				(281	)
Other comprehensive loss, net of tax			—				—				—				—				—				—				—				(1,947	)			—				(1,947	)
ESOP shares committed to be released (33,436 shares)			—				—				—				—				—				375				—				—				291				666
Share-based compensation			—				—				—				—				—				603				—				—				—				603
Balance, September 30, 2026			225,000			$	225,000				24,187,901			$	249			$	(5,738	)		$	211,317			$	169,855			$	(12,645	)		$	(9,778	)		$	578,260

																														Accumulated				Unallocated
																		Treasury				Additional								Other				Common
		Preferred Stock								Common Stock								Stock,				Paid-in				Retained				Comprehensive				Stock
		Shares				Amount				Shares				Amount				At Cost				Capital				Earnings				Loss				of ESOP				Total
Balance, December 31, 2024			225,000			$	225,000				23,961,214			$	249			$	(7,707	)		$	207,319			$	107,754			$	(15,297	)		$	(11,818	)		$	505,500
Net income			—				—				—				—				—				—				5,959				—				—				5,959
Preferred stock dividend			—				—				—				—				—				—				(281	)			—				—				(281	)
Other comprehensive income, net of tax			—				—				—				—				—				—				—				1,782				—				1,782
Release of restricted stock units			—				—				4,977				—				66				(66	)			—				—				—				—
ESOP shares committed to be released (33,436 shares)			—				—				—				—				—				132				—				—				291				423
Share-based compensation			—				—				—				—				—				503				—				—				—				503
Balance, March 31, 2025			225,000			$	225,000				23,966,191			$	249			$	(7,641	)		$	207,888			$	113,432			$	(13,515	)		$	(11,527	)		$	513,886
Net income			—				—				—				—				—				—				6,100				—				—				6,100
Preferred Stock Dividend							—				—				—				—				—				(282	)			—				—				(282	)
Other comprehensive income, net of tax			—				—				—				—				—				—				—				468				—				468
Release of restricted stock units			—				—				18,609				—				237				(237	)			—				—				—				—
ESOP shares committed to be released (33,436 shares)			—				—				—				—				—				171				—				—				292				463
Share-based compensation			—				—				—				—				—				453				—				—				—				453
Balance, June 30, 2025			225,000			$	225,000				23,984,800			$	249			$	(7,404	)		$	208,275			$	119,250			$	(13,047	)		$	(11,235	)		$	521,088
Net income			—				—				—				—				—				—				6,508				—				—				6,508
Preferred Stock Dividend															—				—				—				(281	)			—				—				(281	)
Other comprehensive income, net of tax			—				—				—				—				—				—				—				1,461				—				1,461
Exercise of stock options			—				—				16,325				—				134				(23	)			—				—				—				111
ESOP shares committed to be released (33,436 shares)			—				—				—				—				—				200				—				—				291				491
Share-based compensation			—				—				—				—				—				457				—				—				—				457
Balance, September 30, 2025			225,000			$	225,000				24,001,125			$	249			$	(7,270	)		$	208,909			$	125,477			$	(11,586	)		$	(10,944	)		$	529,835

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

Nine Months Ended September 30, 2026 and 2025

(In thousands)

		Nine Months Ended
		September 30,
		2026				2025
Cash Flows From Operating Activities:
Net income		$	35,367			$	18,567
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of premiums/discounts on securities, net			(61	)			(54	)
Gain on sale of loans			(469	)			(887	)
Loss on real property held for sale			1,166				—
Provision for credit losses			7,023				2,705
Depreciation and amortization			3,629				3,578
ESOP compensation expense			1,979				1,573
Share-based compensation expense			1,899				1,413
Deferred income taxes			(13,402	)			(1,328	)
Changes in assets and liabilities:
Decrease in mortgage loans held for sale, fair value			156				5,425
Increase in accrued interest receivable			(3,719	)			(1,132	)
Increase in other assets			(50	)			(8,097	)
Increase in accrued interest payable			74				660
Decrease in operating lease liabilities			(2,083	)			(2,015	)
Increase in other liabilities			3,849				245
Net cash provided by operating activities			35,358				20,653
Cash Flows From Investing Activities:
Net (purchases) redemptions of FHLBNY stock			(4,755	)			3,237
Net purchases of FRBNY stock			(27	)			—
Proceeds from maturities, calls and principal repayments on securities			41,926				97,714
Proceeds from sale of loans			10,874				6,653
Net increase in loans			(497,675	)			(212,638	)
Purchases of premises and equipment			(95	)			(1,013	)
Net cash used in investing activities			(449,752	)			(106,047	)
Cash Flows From Financing Activities:
Net increase in deposits			321,073				167,868
Net proceeds (repayment) from borrowings			100,000				(75,000	)
Stock options exercised			222				110
Dividends paid on preferred stock			(844	)			(844	)
Net cash provided by financing activities			420,451				92,134
Net increase in cash and cash equivalents			6,057				6,740
Cash and cash equivalents at beginning of period			126,154				139,839
Cash and cash equivalents at end of period		$	132,211			$	146,579
Supplemental disclosures of cash flow information:
Cash paid for interest on deposits and borrowings		$	65,468			$	64,167
Cash paid for income taxes, net of refunds		$	11,110			$	6,385
Operating lease assets in exchange for operating lease liabilities		$	901			$	—

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1. Nature of Business

Basis of Presentation and Consolidation:

Ponce Financial Group, Inc. (hereafter referred to as “we,” “our,” “us,” “Ponce Financial Group, Inc.,” or the “Company”) is a financial holding company and the holding company of Ponce Bank, National Association (“Ponce Bank” or the “Bank”), a national bank. The Company’s Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiary Ponce Bank. All significant intercompany transactions and balances have been eliminated in consolidation. For further information, refer to the audited Consolidated Financial Statements and Notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 13, 2026 (the "2025 Form 10-K").

Use of Estimates: In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the consolidated statement of financial condition, and revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of loans held for sale, the valuation of deferred tax assets and investment securities and the estimates relating to the valuation for share-based awards.

Segment Reporting: Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (the “CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates as one operating segment and one reportable segment.

Income Taxes. During the third quarter of 2026, the Company concluded that it is more likely than not that its New York State and New York City deferred tax assets will be realized and released the valuation allowance previously recorded against those assets. The release was recognized as a discrete income tax benefit of $10.5 million in the three and nine months ended September 30, 2026. In addition, the Company releases income tax effects recorded in accumulated other comprehensive income using the portfolio approach, under which the disproportionate tax effect is released only when the entire portfolio of available-for-sale securities is liquidated, sold or extinguished on an individual security basis as the related securities are sold, mature or are otherwise extinguished. During the three and nine months ended September 30, 2026, the Company recorded $1.4 million related to deferred tax assets on net unrealized losses on available-for-sale securities.

Note 2. Preferred Stock

On June 7, 2022 (the “Original Closing Date”), the Company issued 225,000 shares of the Company’s Preferred Stock‎, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225,000,000 in cash to the Treasury, pursuant to the Treasury’s ECIP. Under the ECIP, Treasury provided investment capital directly to depository institutions that are CDFIs or MDIs or their holding companies, to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, in low-income and underserved communities. No dividends accrued or were due for the first two years after issuance. For years three through ten, depending upon the level of qualified and/or deep impact lending made in targeted communities, as defined in the ECIP guidelines, dividends will be at an annual rate of either 2.0%, 1.25% or 0.5% and, thereafter, will be fixed at one of the foregoing rates. If we are unable to make qualified and/or deep impact loans at required levels, we will be required to pay dividends at the higher annual rates. Additionally, we may make qualified and/or deep impact loans that are riskier than we otherwise would in an effort to meet the lending requirements for the lower dividend rates and/or to qualify for the purchase option under the Repurchase Agreement (as described below).

Holders of Preferred Stock generally do not have any voting rights, with the exception of voting rights on certain matters as outlined in the Certificate of Designations. The Treasury is the holder of the Preferred Stock and a governmental entity, and the Treasury may hold interests that are different from a private investor in exercising its voting and other rights. In the event of a liquidation, dissolution or

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

winding up of the Company, the Preferred Stock will be entitled to a liquidation preference, subject to certain limitations, in the amount of the sum of $1,000 per share plus declared and unpaid dividends (without accumulation of undeclared dividends) on each share.

As a participant in the ECIP, the Company must comply with certain operating requirements. Specifically, the Company must adopt the Treasury's standards for executive compensation and luxury expenses for the period during which the Treasury holds equity issued under the ECIP. These restrictions may make it difficult to adequately compensate our management team, which could impact our ability to retain qualified management. Additionally, under the ECIP regulations, the Company cannot pay dividends or repurchase its common stock unless it meets certain income-based tests and has paid the required dividends on the Preferred Stock. In June 2024, the Company began paying dividends on its Preferred Stock, which dividends were $0.8 million and $0.8 million for the nine months ended September 30, 2026 and 2025, respectively.

On December 20, 2024, the Company entered into an ECIP Securities Purchase Option Agreement (the “Repurchase Agreement”) with Treasury. Pursuant to the Repurchase Agreement, Treasury has granted the Company an option to purchase all of the Preferred Stock during the Option Period, which is the first fifteen years following the Original Closing Date. The purchase price for the Preferred Stock pursuant to the purchase option is determined based on a formula equal to the present value of the Preferred Stock, calculated as set forth in the Repurchase Agreement, together with any accrued and unpaid dividends thereon, as of the closing date. Subject to variations in interest rates and the equity risk premium, which are components included in the purchase price calculation, the Company presently expects that the purchase price will be at a substantial discount from the face value of the Preferred Stock.

The purchase option may not be exercised unless and until at least one of the Threshold Conditions under the Repurchase Agreement has been met. The Threshold Conditions are as follows: during the ten years that follow the Original Closing Date (the “ECIP Period”) either (1) over any sixteen consecutive quarters, an average of at least 60% of the Company’s Total Originations, as defined pursuant to the terms of the ECIP, qualifies as “Deep Impact Lending,” as defined pursuant to the terms of the ECIP (the “Deep Impact Condition”); (2) over any twenty-four consecutive quarters, an average of at least 85% of the Company’s Total Originations qualifies as “Qualified Lending,” as defined pursuant to the terms of the ECIP (the “Qualified Lending Condition”); or (3) the Preferred Stock has a dividend rate of no more than 0.5%, which dividend rate is calculated pursuant to the ECIP and the terms thereof, at each of six consecutive Reset Dates, as defined in the ECIP.

The earliest possible date by which a Threshold Condition may be met is June 30, 2026, which is the end of the sixteenth consecutive quarter following the Original Closing Date. The Company has met the Threshold Conditions to exercise the purchase option as of June 30, 2026 because the Company has reported sixteen consecutive quarters for which it has met the Deep Impact Condition. The Preferred Stock currently has a dividend rate of 0.5%.

The closing of the repurchase of the Preferred Stock, if consummated, would occur between thirty and ninety days following the satisfaction of all applicable conditions, including the Threshold Condition. In addition to the requirement that a Threshold Condition be met, the Repurchase Agreement requires that the Company meet certain other eligibility conditions in order to exercise the purchase option in the future, including compliance with the terms of the original ECIP purchase agreement and the terms of the Preferred Stock, maintaining qualification as either a CDFI or an MDI, and meeting other legal and regulatory criteria. Although the Company currently expects that it will satisfy all other necessary conditions, there can be no assurance if and when such repurchase will be consummated with Treasury.

The purchase option granted under the agreement is a freestanding financial instrument under GAAP. The Company analyzed the fair value of the repurchase option in accordance with ASC Topic 820 “Fair Value Measurements” and determined that the purchase option value is de minimis as of December 20, 2024, December 31, 2025 and September 30, 2026.

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 3. Securities

The amortized cost, gross unrealized gains and losses, and fair value of securities at September 30, 2026 and December 31, 2025 are summarized as follows:

		September 30, 2026
						Gross				Gross
		Amortized				Unrealized				Unrealized
		Cost				Gains				Losses				Fair Value
		(in thousands)
Available-for-Sale Securities:
Corporate Bonds		$	13,500			$	—			$	(367	)		$	13,133
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)			28,421				—				(5,455	)			22,966
FHLMC Certificates			7,103				—				(961	)			6,142
FNMA Certificates			46,826				—				(9,664	)			37,162
GNMA Certificates			71				1				—				72
Total available-for-sale securities		$	95,921			$	1			$	(16,447	)		$	79,475
Held-to-Maturity Securities:
Corporate Bonds		$	7,500			$	9			$	(132	)		$	7,377
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)			140,748				—				(7,182	)			133,566
FHLMC Certificates			2,901				44				(160	)			2,785
FNMA Certificates			80,536				—				(5,158	)			75,378
SBA Certificates			9,697				54				—				9,751
Allowance for Credit Losses			(206	)			—				—				—
Total held-to-maturity securities		$	241,176			$	107			$	(12,632	)		$	228,857

(1)Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.

		December 31, 2025
						Gross				Gross
		Amortized				Unrealized				Unrealized
		Cost				Gains				Losses				Fair Value
		(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds		$	2,999			$	—			$	(20	)		$	2,979
Corporate Bonds			13,501				—				(738	)			12,763
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)			30,839				—				(4,493	)			26,346
FHLMC Certificates			7,915				—				(790	)			7,125
FNMA Certificates			50,620				—				(7,714	)			42,906
GNMA Certificates			76				1				—				77
Total available-for-sale securities		$	105,950			$	1			$	(13,755	)		$	92,196
Held-to-Maturity Securities:
Corporate Bonds		$	7,500			$	36			$	(138	)		$	7,398
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)			160,786				100				(2,876	)			158,010
FHLMC Certificates			3,133				22				(119	)			3,036
FNMA Certificates			90,868				53				(1,453	)			89,468
SBA Certificates			10,931				32				—				10,963
Allowance for Credit Losses			(236	)			—				—				—
Total held-to-maturity securities		$	272,982			$	243			$	(4,586	)		$	268,875

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

(1)Comprised of FHLMC, FNMA and GNMA issued securities.

The Company’s securities portfolio had 33 and 34 available-for-sale securities and 28 and 28 held-to-maturity securities at September 30, 2026 and December 31, 2025, respectively. There were no available-for-sale and held-to-maturity securities sold during the nine months ended September 30, 2026 and for the year ended December 31, 2025. There was one available-for-sale security in the amount of $3.0 million that matured during the nine months ended September 30, 2026. There were four available-for-sale securities in the total amount of $8.3 million and three held-to-maturity securities in the total amount of $50.0 million that matured or were called during the year ended December 31, 2025. The Company did not purchase any available-for-sale securities and held-to-maturity securities during the nine months ended September 30, 2026 and during the year ended December 31, 2025.

The following table presents the Company's gross unrealized losses and fair values of its securities, aggregated by the length of time the individual securities have been in a continuous unrealized loss position, at September 30, 2026 and December 31, 2025:

		September 30, 2026
		Securities With Gross Unrealized Losses
		Less Than 12 Months								12 Months or More								Total				Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
		(in thousands)
Available-for-Sale Securities:
Corporate Bonds		$	—			$	—			$	13,133			$	(367	)		$	13,133			$	(367	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			—				—				22,966				(5,455	)			22,966				(5,455	)
FHLMC Certificates			—				—				6,142				(961	)			6,142				(961	)
FNMA Certificates			—				—				37,162				(9,664	)			37,162				(9,664	)
Total available-for-sale securities		$	—			$	—			$	79,403			$	(16,447	)		$	79,403			$	(16,447	)
Held-to-Maturity Securities:
Corporate Bonds		$	—			$	—			$	5,368			$	(132	)		$	5,368			$	(132	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			20,555				(559	)			113,011				(6,623	)			133,566				(7,182	)
FHLMC Certificates			—				—				548				(160	)			548				(160	)
FNMA Certificates			2,927				(203	)			72,451				(4,955	)			75,378				(5,158	)
Total held-to-maturity securities		$	23,482			$	(762	)		$	191,378			$	(11,870	)		$	214,860			$	(12,632	)

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

		December 31, 2025
		Securities With Gross Unrealized Losses
		Less Than 12 Months								12 Months or More								Total				Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
		(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds		$	—			$	—			$	2,979			$	(20	)		$	2,979			$	(20	)
Corporate Bonds			—				—				12,763				(738	)			12,763				(738	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			—				—				26,346				(4,493	)			26,346				(4,493	)
FHLMC Certificates			—				—				7,125				(790	)			7,125				(790	)
FNMA Certificates			—				—				42,906				(7,714	)			42,906				(7,714	)
Total available-for-sale securities		$	—			$	—			$	92,119			$	(13,755	)		$	92,119			$	(13,755	)
Held-to-Maturity Securities:
Corporate Bonds		$	—			$	—			$	5,362			$	(138	)		$	5,362			$	(138	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			16,561				(50	)			132,942				(2,826	)			149,503				(2,876	)
FHLMC Certificates			—				—				616				(119	)			616				(119	)
FNMA Certificates			—				—				85,670				(1,453	)			85,670				(1,453	)
Total held-to-maturity securities		$	16,561			$	(50	)		$	224,590			$	(4,536	)		$	241,151			$	(4,586	)

At September 30, 2026 and December 31, 2025, the Company had 32 and 33 available-for-sale securities and 23 and 21 held-to-maturity securities at September 30, 2026 and December 31, 2025, respectively, with gross unrealized loss positions. Management reviewed the financial condition of the entities underlying the securities at both September 30, 2026 and December 31, 2025. The unrealized losses related to the Company debt securities were issued by U.S. government-sponsored entities and agencies and corporate bonds. The Company does not believe that the debt securities that were in an unrealized loss position as of September 30, 2026 represents a credit loss impairment. The gross unrealized loss positions related to mortgage-backed securities and other obligations issued by the U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. 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.

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Management reviewed the collectability of the corporate bonds taking into consideration of such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings, including ratings in effect as of the reporting date. Management believes the unrealized losses on the corporate bonds are primarily attributable to changes in the interest rates and not changes in the credit quality of the issuers of the corporate bonds.

The following is a summary of maturities of securities at September 30, 2026. Amounts are shown by contractual maturity. Because borrowers for mortgage-backed securities have the right to prepay obligations with or without prepayment penalties, at any time, these securities are included as a total within the table.

		September 30, 2026
		Amortized				Fair
		Cost				Value
		(in thousands)
Available-for-Sale Securities:
Corporate Bonds:
Amounts maturing:
Three months or less		$	—			$	—
More than three months through one year			—				—
More than one year through five years			7,000				6,686
More than five years through ten years			6,500				6,447
			13,500				13,133
Mortgage-Backed Securities			82,421				66,342
Total available-for-sale securities		$	95,921			$	79,475
Held-to-Maturity Securities:
Corporate Bonds:
Amounts maturing:
Three months or less		$	—			$	—
More than three months through one year			—				—
More than one year through five years			—				—
More than five years through ten years			7,500				7,377
			7,500				7,377
Mortgage-Backed Securities			233,882				221,480
Allowance for Credit Losses			(206	)			—
Total held-to-maturity securities		$	241,176			$	228,857

At September 30, 2026 and December 31, 2025, no securities were pledged as collateral for borrowing activities.

The following table presents the activity in the allowance for credit losses for held-to-maturity securities:

		For the Nine
		Months Ended				For the Year Ended
		September 30, 2026				December 31, 2025
		(in thousands)
Allowance for credit losses on securities at beginning of period		$	236			$	216
(Benefit) provision for credit losses			(30	)			20
Allowance for credit losses on securities at end of period		$	206			$	236

At September 30, 2026 and December 31, 2025, the entire allowance for credit losses on securities was allocated to corporate bonds.

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 4. Mortgage Loans Held-for-Sale

The following table provides the fair value and contractual principal balance outstanding of mortgage loans held-for-sale accounted for under the fair value option:

		September 30,				December 31,
		2026				2025
		(in thousands)
Mortgage loans held-for-sale, at fair value		$	3,701			$	3,388
Mortgage loans held-for-sale, contractual principal outstanding			3,649				3,337
Fair value less unpaid principal balance		$	52			$	51

At September 30, 2026 and December 31, 2025, the Company had 8 loans and 10 loans in the amount of $3.7 million and $3.4 million, respectively, that were classified as held-for-sale and accounted for under the fair value option accounting guidance for financial assets and financial liabilities.

At September 30, 2026 and December 31, 2025, there were no mortgage loans held for sale, at fair value that were greater than 90 days past due and non-accrual with a substandard risk rating.

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Notes to Consolidated Financial Statements (Unaudited)

Note 5. Loans Receivable, Net and Allowance for Credit Losses

Loans receivable, net at September 30, 2026 and December 31, 2025 are summarized as follows:

		September 30,				December 31,
		2026				2025
		(in thousands)
Mortgage loans:
1-4 Family residential (1)		$	413,064			$	434,374
Multifamily residential			1,051,642				756,542
Nonresidential properties			557,449				526,210
Construction and land			1,016,809				854,096
Total mortgage loans			3,038,964				2,571,222
Nonmortgage loans:
Business loans			75,852				53,063
Consumer loans			581				625
Total non-mortgage loans			76,433				53,688
Total loans, gross			3,115,397				2,624,910
Net deferred loan origination fees			(5,128	)			(203	)
Allowance for Credit Losses			(29,168	)			(25,449	)
Loans receivable, net		$	3,081,101			$	2,599,258

(1)Includes both investor owned and owner occupied 1-4 family residential properties combined, which were previously reported separately.

The Company’s lending activities are conducted principally in metropolitan New York City. The Company primarily grants loans secured by real estate to individuals and businesses pursuant to an established credit policy applicable to each type of lending activity in which it engages. Although collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrowers’ ability to generate continuing cash flows. The Company also evaluates the collateral and creditworthiness of each customer. The credit policy provides that depending on the borrowers’ creditworthiness and type of collateral, credit may be extended up to predetermined percentages of the market value of the collateral or on an unsecured basis. Real estate is the primary form of collateral. Other important forms of collateral are time deposits and marketable securities.

For disclosures related to the allowance for credit losses and credit quality, the Company does not have any disaggregated classes of loans below the segment level.

Credit-Quality Indicators: Internally assigned risk ratings are used as credit-quality indicators, which are reviewed by management on a quarterly basis.

The objectives of the Company’s risk-rating system are to provide the Board of Directors and senior management with an objective assessment of the overall quality of the loan portfolio, to promptly and accurately identify loans with well-defined credit weaknesses so that timely action can be taken to minimize credit loss, to identify relevant trends affecting the collectability of the loan portfolio, to isolate potential problem areas and to provide essential information for determining the adequacy of the allowance for credit losses.

Below are the definitions of the internally assigned risk ratings:

•Strong Pass – Loans to a new or existing borrower collateralized at least 90 percent by an unimpaired deposit account at the Company.

•Good Pass – Loans to a new or existing borrower in a well-established enterprise in excellent financial condition with strong liquidity and a history of consistently high level of earnings, cash flow and debt service capacity.

•Satisfactory Pass – Loans to a new or existing borrower of average strength with acceptable financial condition, satisfactory record of earnings and sufficient historical and projected cash flow to service the debt.

•Performance Pass – Existing loans that evidence strong payment history but document less than average strength, financial condition, record of earnings, or projected cash flows with which to service the debt.

•Special Mention – Loans in this category are currently protected but show one or more potential weaknesses and risks which may inadequately protect collectability or borrower’s ability to meet repayment terms at some future date if the weakness or weaknesses are not monitored or remediated.

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Notes to Consolidated Financial Statements (Unaudited)

•Substandard – Loans that are inadequately protected by the repayment capacity of the borrower or the current sound net worth of the collateral pledged, if any. Loans in this category have well defined weaknesses and risks that jeopardize the repayment. They are characterized by the distinct possibility that some loss may be sustained if the deficiencies are not remediated.

•Doubtful – Loans that have all the weaknesses of loans classified as “Substandard” with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable.

Loans within the top four categories above are considered pass rated, as commonly defined. Risk ratings are assigned as necessary to differentiate risk within the portfolio. Risk ratings are reviewed on an ongoing basis and revised to reflect changes in the borrowers’ financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage as well as other considerations.

The following tables summarize total loans by year of origination and internally assigned credit risk ratings:

		2026				2025				2024				2023				2022				2021 and Prior				Total
		(in thousands)
September 30, 2026
Mortgage Loans:
1-4 Family residential
Pass		$	9,320			$	5,691			$	6,852			$	40,509			$	95,737			$	244,607			$	402,716
Special mention			—				743				—				833				—				2,607				4,183
Substandard			—				—				—				—				—				6,165				6,165
Total 1-4 Family residential			9,320				6,434				6,852				41,342				95,737				253,379				413,064
Multifamily residential
Pass			369,368				136,068				73,332				66,419				154,187				231,518				1,030,892
Special mention			—				—				—				1,111				—				4,466				5,577
Substandard			—				—				—				8,271				—				6,902				15,173
Total Multifamily residential			369,368				136,068				73,332				75,801				154,187				242,886				1,051,642
Nonresidential properties
Pass			84,552				149,034				73,997				27,879				70,481				151,506				557,449
Special mention			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—
Total Nonresidential properties			84,552				149,034				73,997				27,879				70,481				151,506				557,449
Construction and Land
Pass			364,333				336,919				147,467				163,990				—				—				1,012,709
Special mention			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				4,100				4,100
Total Construction and land			364,333				336,919				147,467				163,990				—				4,100				1,016,809
Total mortgage loans			827,573				628,455				301,648				309,012				320,405				651,871				3,038,964
Nonmortgage Loans:
Business loans
Pass			7,652				41,937				15,670				5,565				102				2,796				73,722
Special mention			—				1,230				498				—				—				168				1,896
Substandard			—				199				31				—				4				—				234
Total Business loans			7,652				43,366				16,199				5,565				106				2,964				75,852
Consumer loans
Pass			219				151				78				104				29				—				581
Special mention			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—
Total Consumer loans			219				151				78				104				29				—				581
Total nonmortgage loans			7,871				43,517				16,277				5,669				135				2,964				76,433
Total loans, gross		$	835,444			$	671,972			$	317,925			$	314,681			$	320,540			$	654,835			$	3,115,397

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

		2025				2024				2023				2022				2021				2020 and Prior				Total
		(in thousands)
December 31, 2025
Mortgage Loans:
1-4 Family residential
Pass		$	3,843			$	4,108			$	43,110			$	98,048			$	53,740			$	221,194			$	424,043
Special mention			—				—				842				—				823				1,180				2,845
Substandard			—				—				—				—				2,302				5,184				7,486
Total 1-4 Family residential			3,843				4,108				43,952				98,048				56,865				227,558				434,374
Multifamily residential
Pass			149,358				107,129				73,769				157,228				58,343				186,331				732,158
Special mention			—				4,462				1,121				—				4,332				1,357				11,272
Substandard			—				—				5,063				—				—				8,049				13,112
Total Multifamily residential			149,358				111,591				79,953				157,228				62,675				195,737				756,542
Nonresidential properties
Pass			170,449				77,935				28,328				74,281				59,835				112,768				523,596
Special mention			—				—				—				2,614				—				—				2,614
Substandard			—								—				—				—				—				—
Total Nonresidential properties			170,449				77,935				28,328				76,895				59,835				112,768				526,210
Construction and Land
Pass			279,271				143,515				358,926				56,297				—				—				838,009
Special mention			—				—				4,659				—				—				—				4,659
Substandard			—				—				—				—				3,180				8,248				11,428
Total Construction and land			279,271				143,515				363,585				56,297				3,180				8,248				854,096
Total mortgage loans			602,921				337,149				515,818				388,468				182,555				544,311				2,571,222
Nonmortgage Loans:
Business loans
Pass			26,618				17,183				6,421				105				457				1,609				52,393
Special mention			344				—				—				7				—				192				543
Substandard			—				37				—				12				78				—				127
Total Business loans			26,962				17,220				6,421				124				535				1,801				53,063
Consumer loans
Pass			275				127				160				57				6				—				625
Special mention			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—
Total Consumer loans			275				127				160				57				6				—				625
Total nonmortgage loans			27,237				17,347				6,581				181				541				1,801				53,688
Total loans, gross		$	630,158			$	354,496			$	522,399			$	388,649			$	183,096			$	546,112			$	2,624,910

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Notes to Consolidated Financial Statements (Unaudited)

An aging analysis of loans, as of September 30, 2026 and December 31, 2025, is as follows:

		September 30, 2026
						30-59				60-89				90 Days												90 Days
						Days				Days				or More								Nonaccrual				or More
		Current				Past Due				Past Due				Past Due				Total				Loans				Accruing
		(in thousands)
Mortgage loans:
1-4 Family residential		$	408,209			$	—			$	1,605			$	3,250			$	413,064			$	3,250			$	—
Multifamily residential			1,038,672				—				1,870				11,100				1,051,642				11,100				—
Nonresidential properties			557,449				—				—				—				557,449				—				—
Construction and land			1,012,709				—				—				4,100				1,016,809				4,100				—
Nonmortgage loans:
Business			74,535				50				1,121				146				75,852				146				—
Consumer			581				—				—				—				581				—				—
Total		$	3,092,155			$	50			$	4,596			$	18,596			$	3,115,397			$	18,596			$	—

		December 31, 2025
						30-59				60-89				90 Days												90 Days
						Days				Days				or More								Nonaccrual				or More
		Current				Past Due				Past Due				Past Due				Total				Loans				Accruing
		(in thousands)
Mortgage loans:
1-4 Family residential		$	420,591			$	6,836			$	2,110			$	4,837			$	434,374			$	4,837			$	—
Multifamily residential			740,222				3,208				—				13,112				756,542				13,112				—
Nonresidential properties			524,446				1,764				—				—				526,210				—				—
Construction and land			845,849				—				—				8,247				854,096				8,247				—
Nonmortgage loans:
Business			52,278				118				—				667				53,063				667				—
Consumer			625				—				—				—				625				—				—
Total		$	2,584,011			$	11,926			$	2,110			$	26,863			$	2,624,910			$	26,863			$	—

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Notes to Consolidated Financial Statements (Unaudited)

The following schedules detail the composition of the allowance for credit losses on loans and the related recorded investment in loans as of and for the nine months ended September 30, 2026 and 2025, and as of and for the year ended December 31, 2025:

		For the Nine Months Ended September 30, 2026
		Mortgage Loans																Nonmortgage Loans
		1-4 Family Residential				Multifamily				Nonresidential				Construction and Land				Business				Consumer				Total for the Period
		(in thousands)
Allowance for Credit Losses:
Balance, beginning of period		$	3,873			$	9,041			$	4,353			$	6,149			$	2,017			$	16			$	25,449
Provision charged to expense			1,109				529				579				2,110				630				1				4,958
Charge-offs			(5	)			(65	)			—				—				(1,175	)			—				(1,245	)
Recoveries			1				—				—				—				5				—				6
Balance, end of period		$	4,978			$	9,505			$	4,932			$	8,259			$	1,477			$	17			$	29,168
Ending balance: individually    evaluated for impairment		$	—			$	42			$	—			$	—			$	146			$	—			$	188
Ending balance: collectively    evaluated for impairment			4,978				9,463				4,932				8,259				1,331				17				28,980
Total		$	4,978			$	9,505			$	4,932			$	8,259			$	1,477			$	17			$	29,168
Loans:
Ending balance: individually    evaluated for impairment		$	3,250			$	11,100			$	—			$	4,100			$	146			$	—			$	18,596
Ending balance: collectively    evaluated for impairment			409,814				1,040,542				557,449				1,012,709				75,706				581				3,096,801
Total		$	413,064			$	1,051,642			$	557,449			$	1,016,809			$	75,852			$	581			$	3,115,397
		For the Three Months Ended September 30, 2026
		Mortgage Loans																Nonmortgage Loans
		1-4 Family Residential				Multifamily				Nonresidential				Construction and Land				Business				Consumer				Total for the Period
		(in thousands)
Allowance for loan losses:
Balance, beginning of period		$	5,295			$	9,532			$	4,888			$	6,414			$	1,413			$	12			$	27,554
(Benefit) provision charged to expense			(312	)			38				44				1,845				376				5				1,996
Charge-offs			(5	)			(65	)			—				—				(317	)			—				(387	)
Recoveries			—				—				—				—				5				—				5
Balance, end of period		$	4,978			$	9,505			$	4,932			$	8,259			$	1,477			$	17			$	29,168

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Notes to Consolidated Financial Statements (Unaudited)

		For the Nine Months Ended September 30, 2025
		Mortgage Loans																Nonmortgage Loans
		1-4 Family Residential				Multifamily				Nonresidential				Construction and Land				Business				Consumer				Total for the Period
		(in thousands)
Allowance for loan losses:
Balance, beginning of period		$	5,932			$	5,004			$	2,697			$	7,710			$	1,113			$	46			$	22,502
(Benefit) provision charged to expense			(2,036	)			3,119				812				(766	)			1,836				(22	)			2,943
Charge-offs			(38	)			—				—				—				(644	)			(3	)			(685	)
Recoveries			—				—				—				—				4				—				4
Balance, end of period		$	3,858			$	8,123			$	3,509			$	6,944			$	2,309			$	21			$	24,764
Ending balance: individually    evaluated for impairment		$	—			$	—			$	—			$	—			$	880			$	—			$	880
Ending balance: collectively    evaluated for impairment			3,858				8,123				3,509				6,944				1,429				21				23,884
Total		$	3,858			$	8,123			$	3,509			$	6,944			$	2,309			$	21			$	24,764
Loans:
Ending balance: individually    evaluated for impairment		$	3,590			$	14,202			$	—			$	4,807			$	880			$	—			$	23,479
Ending balance: collectively    evaluated for impairment			441,012				674,372				436,175				881,562				57,132				727				2,490,980
Total		$	444,602			$	688,574			$	436,175			$	886,369			$	58,012			$	727			$	2,514,459
		For the Three Months Ended September 30, 2025
		Mortgage Loans																Nonmortgage Loans
		1-4 Family Residential				Multifamily				Nonresidential				Construction and Land				Business				Consumer				Total for the Period
		(in thousands)
Allowance for loan losses:
Balance, beginning of period		$	3,683			$	8,863			$	3,294			$	6,895			$	1,345			$	20			$	24,100
Provision (benefit) charged to expense			175				(740	)			215				49				1,164				1				864
Charge-offs			—				—				—				—				(200	)			—				(200	)
Recoveries			—				—				—				—				—				—				—
Balance, end of period		$	3,858			$	8,123			$	3,509			$	6,944			$	2,309			$	21			$	24,764

		For the Year Ended December 31, 2025
		Mortgage Loans																Nonmortgage Loans
		1-4 Family Residential				Multifamily				Nonresidential				Construction and Land				Business				Consumer				Total for the Period
		(in thousands)
Allowance for loan losses:
Balance, beginning of year		$	5,932			$	5,004			$	2,697			$	7,710			$	1,113			$	46			$	22,502
(Benefit) provision charged to expense			(1,990	)			4,037				1,656				(1,561	)			2,309				18				4,469
Charge-offs			(69	)			—				—				—				(1,444	)			(48	)			(1,561	)
Recoveries			—				—				—				—				39				—				39
Balance, end of year		$	3,873			$	9,041			$	4,353			$	6,149			$	2,017			$	16			$	25,449
Ending balance: individually    evaluated for impairment		$	—			$	—			$	—			$	—			$	667			$	—			$	667
Ending balance: collectively    evaluated for impairment			3,873				9,041				4,353				6,149				1,350				16				24,782
Total		$	3,873			$	9,041			$	4,353			$	6,149			$	2,017			$	16			$	25,449
Loans:
Ending balance: individually    evaluated for impairment		$	4,837			$	13,112			$	—			$	8,247			$	667			$	—			$	26,863
Ending balance: collectively    evaluated for impairment			429,537				743,430				526,210				845,849				52,396				625				2,598,047
Total		$	434,374			$	756,542			$	526,210			$	854,096			$	53,063			$	625			$	2,624,910

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Notes to Consolidated Financial Statements (Unaudited)

The following tables summarize gross charge-offs by vintage:

		2026				2025				2024				2023				2022				2021 and Prior				Total
		(in thousands)
For the Nine Months Ended September 30, 2026
1-4 Family residential		$	—			$	—			$	—			$	—			$	—			$	5			$	5
Multifamily residential			—				—				—				64				—				1				65
Business loans			—				31				512				394				24				214				1,175
Total charge-offs		$	—			$	31			$	512			$	458			$	24			$	220			$	1,245

		2025				2024				2023				2022				2021				2020 and Prior				Total
		(in thousands)
For the Nine Months Ended September 30, 2025
1-4 Family residential		$	—			$	—			$	—			$	—			$	—			$	38			$	38
Business loans			—				618				—				—				—				25				643
Consumer loans			—				—				3				—				—				—				3
Total charge-offs		$	—			$	618			$	3			$	—			$	—			$	63			$	684

Loans are evaluated for collectability when current information and events indicate that all amounts due may not be collectible according to the contractual terms of the related loan agreements. Loans are identified for individual evaluation by applying normal loan review procedures in accordance with the allowance for credit losses methodology. Management periodically assesses loans to determine whether they continue to share similar risk characteristics with their respective pools. Any loan that is, or will potentially be, no longer performing in accordance with the terms of the original loan contract is evaluated individually when it no longer shares similar risk characteristics with the pool.

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Notes to Consolidated Financial Statements (Unaudited)

The following information relates to non-accrual loans as of and for the nine months ended September 30, 2026 and 2025 and as of and for the year ended December 31, 2025:

		Unpaid				Recorded Investment				Recorded Investment				Total								Average				Interest Income
As of and For the Nine Months Ended		Principal				With No				With				Recorded				Related				Recorded				Recognized
September 30, 2026		Balance				Allowance				Allowance				Investment				Allowance				Investment				on a Cash Basis
		(in thousands)
Mortgage loans:
1-4 Family residential		$	3,286			$	3,250			$	—			$	3,250			$	—			$	4,510			$	42
Multifamily residential			11,100				7,773				3,327				11,100				42				11,393				193
Nonresidential properties			—				—				—				—				—				—				—
Construction and land			4,100				4,100				—				4,100				—				6,112				717
Nonmortgage loans:
Business			146				—				146				146				146				329				7
Consumer			—				—				—				—				—				—				—
Total		$	18,632			$	15,123			$	3,473			$	18,596			$	188			$	22,344			$	959
		Unpaid				Recorded Investment				Recorded Investment				Total								Average				Interest Income
As of and For the Nine Months Ended		Principal				With No				With				Recorded				Related				Recorded				Recognized
September 30, 2025		Balance				Allowance				Allowance				Investment				Allowance				Investment				on a Cash Basis
		(in thousands)
Mortgage loans:
1-4 Family residential		$	3,589			$	3,590			$	—			$	3,590			$	—			$	2,768			$	97
Multifamily residential			13,862				14,202				—				14,202				—				11,491				292
Nonresidential properties			—				—				—				—				—				135				—
Construction and land			4,807				4,807				—				4,807				—				7,433				—
Nonmortgage loans:
Business			880				—				880				880				880				417				35
Consumer			—				—				—				—				—				—				—
Total		$	23,138			$	22,599			$	880			$	23,479			$	880			$	22,244			$	424

		Unpaid				Recorded Investment				Recorded Investment				Total								Average				Interest Income
As of and for the Year Ended		Principal				With No				With				Recorded				Related				Recorded				Recognized
December 31, 2025		Balance				Allowance				Allowance				Investment				Allowance				Investment				on a Cash Basis
		(in thousands)
Mortgage loans:
1-4 Family residential		$	4,819			$	4,837			$	—			$	4,837			$	—			$	3,182			$	209
Multifamily residential			12,731				13,112				—				13,112				—				11,815				390
Nonresidential properties			—				—				—				—				—				101				—
Construction and land			8,800				8,247				—				8,247				—				7,596				—
Nonmortgage loans:
Business			667				—				667				667				667				467				10
Consumer			—				—				—				—				—				—				—
Total		$	27,017			$	26,196			$	667			$	26,863			$	667			$	23,161			$	609

Collateral Dependent Loans

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral.

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Notes to Consolidated Financial Statements (Unaudited)

The Company had collateral dependent loans which were individually evaluated to determine expected credit losses as of the dates indicated.

		September 30, 2026								December 31, 2025
						Associated								Associated
		Collateral				Allowance for				Collateral				Allowance for
		Dependent				Credit Losses				Dependent				Credit Losses
		(in thousands)
1-4 Family residential		$	3,250			$	—			$	4,837			$	—
Multifamily residential			11,100				42				13,112				—
Construction and land			4,100				—				8,247				—
Total		$	18,450			$	42			$	26,196			$	—

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Company adopted Accounting Standards Update (“ASU”) 2022-02 on January 1, 2023. Since adoption, the Company has modified one loan with borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. At September 30, 2026 and December 31, 2025, there was one loan in the amount of $0.2 million with modifications to a borrower experiencing financial difficulty.

Prior to the adoption of ASU 2022-02 on January 1, 2023, the Company classified certain loans as troubled debt restructuring (“TDR”) loans when credit terms to a borrower in financial difficulty were modified, in accordance with ASC 310-40. With the adoption of ASU 2022-02 as of January 1, 2023, the Company has ceased to recognize or measure for new TDRs but those existing at December 31, 2022 will remain until settled.

At September 30, 2026 and December 31, 2025, there were 13 and 14 troubled debt restructured loans totaling $3.5 million and $3.6 million, respectively, of which $3.0 million and $3.2 million are on accrual status at September 30, 2026 and December 31, 2025, respectively. There were no commitments to lend additional funds to borrowers whose loans have been modified in a troubled debt restructuring.

Off-Balance Sheet Credit Losses

Also included within the scope of the CECL standard are off-balance sheet loan commitments, which includes the unfunded portion of committed lines of credit and construction loans.

The Company estimates expected credit losses over the contractual period in which the company is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet exposures is adjusted as a provision for credit loss expense. The Company uses similar assumptions and risk factors that are developed for collectively evaluated financing receivables. This estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments to be funded over its estimated life.

At September 30, 2026 and December 31, 2025, the allowance for off-balance sheet credit losses was $4.2 million and $2.1 million, respectively, which is included in the "Other liabilities" on the Consolidated Statements of Financial Condition. During the three months ended September 30, 2026 and 2025, the Company had $1.2 million and $0.2 million charged for the provision for credit losses, respectively, and during the nine months ended September 30, 2026 and 2025, $2.1 million charged for the provision for credit losses and $0.2 million in benefit for credit losses, respectively, for off-balance items, which are included in "Provision for credit losses" in the Consolidated Statements of Operations.

Note 6. Leases

The Company has 16 operating leases for branches and office spaces (including headquarters) and six operating leases for equipment at both September 30, 2026 and December 31, 2025. Our leases have remaining lease terms ranging from less than one year to approximately 13.3 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease terms. Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through February of 2040.

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Notes to Consolidated Financial Statements (Unaudited)

Supplemental balance sheet information related to leases was as follows:

		September 30,				December 31,
		2026				2025
		(Dollars in thousands)
Operating lease ROU assets		$	26,331			$	27,583
Operating lease liabilities			28,171				29,353
Weighted-average remaining lease term-operating leases		10.7 years				11.2 years
Weighted average discount rate-operating leases			5.1	%			5.1	%

The components of lease expense information related to leases were as follows:

				For the Three								For the Nine
				Months Ended								Months Ended
				September 30,								September 30,
				2026				2025				2026				2025
				(Dollars in thousands)
Lease Cost
Operating lease cost		Occupancy and equipment		$	1,048			$	1,070			$	3,147			$	3,242
Operating lease cost		Other operating expenses			1				3				8				7
Short-term lease cost		Other operating expenses			6				8				21				24
Variable lease cost		Occupancy and equipment			42				39				115				127
Total lease cost				$	1,097			$	1,120			$	3,291			$	3,400

The Company’s minimum annual rental payments under the terms of the leases are as follows at September 30, 2026:

		Minimum Rental
Years ended December 31:		(in thousands)
Remainder of 2026		$	1,026
2027			3,866
2028			3,808
2029			3,360
2030			3,423
Thereafter			21,157
Total Minimum payments required			36,640
Less: implied interest			8,469
Present value of lease liabilities		$	28,171

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Notes to Consolidated Financial Statements (Unaudited)

Note 7. Deposits

Deposits at September 30, 2026 and December 31, 2025 are summarized as follows:

		September 30,				December 31,
		2026				2025
		(in thousands)
Demand		$	244,860			$	208,250
Interest-bearing deposits:
NOW/IOLA accounts			76,392				84,012
Money market accounts			898,719				779,532
Reciprocal deposits			188,016				152,630
Savings accounts			118,727				117,708
Total NOW, money market, reciprocal and savings			1,281,854				1,133,882
Certificates of deposit of $250K or more			202,702				202,500
Brokered certificates of deposits (1)			144,569				67,942
Listing service deposits (1)			994				4,150
Certificates of deposit less than $250K			492,729				429,911
Total certificates of deposit			840,994				704,503
Total interest-bearing deposits			2,122,848				1,838,385
Total deposits		$	2,367,708			$	2,046,635

(1)At September 30, 2026 and December 31, 2025, there were no individual listing service deposits amounting to $250,000 or more, and no individual brokered certificates of deposit amounting to $250,000 or more.

At September 30, 2026 scheduled maturities of certificates of deposit were as follows:

		(in thousands)
2026		$	333,233
2027			442,987
2028			48,633
2029			10,260
2030			3,328
Thereafter			2,553
		$	840,994

Overdrawn deposit accounts that have been reclassified to loans amounted to $0.1 million as of both September 30, 2026 and December 31, 2025.

Note 8. Borrowings

The Bank had outstanding term advances from the FHLBNY at September 30, 2026 and December 31, 2025 as indicated below.

FHLBNY Advances: As a member of the FHLBNY, the Bank has the ability to borrow from the FHLBNY based on a certain percentage of the value of the Bank's qualified collateral, as defined in the FHLBNY Statement of Credit Policy, at the time of the borrowing. In accordance with an agreement with the FHLBNY, the qualified collateral must be free and clear of liens, pledges and encumbrances.

The Bank had $646.1 million and $596.1 million of outstanding term advances from the FHLBNY at September 30, 2026 and December 31, 2025, respectively. The Bank had one overnight line of credit advance in the amount of $50.0 million from the FHLBNY at September 30, 2026 and no overnight line of credit advance from the FHLBNY at December 31, 2025.

FRBNY Advances: The Bank had no term and overnight line of credit advances outstanding from the FRBNY at September 30, 2026 and no term and overnight line of credit advances outstanding from the FRBNY at December 31, 2025.

Letters of Credit: The Bank had two unsecured lines of credit in the amount of $75.0 million with two correspondent banks for both periods at September 30, 2026 and December 31, 2025.

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Notes to Consolidated Financial Statements (Unaudited)

Borrowed funds at September 30, 2026 and December 31, 2025 consist of the following and are summarized by maturity and call date below:

	September 30, 2026												December 31, 2025
	Scheduled Maturity				Redeemable at Call Date				Weighted Average Rate				Scheduled Maturity				Redeemable at Call Date				Weighted Average Rate
	(Dollars in thousands)
Overnight line of credit    advance	$	50,000			$	50,000				4.21	%		$	—			$	—				—	%
									.
FHLBNY Term advances ending:
2026	$	225,000			$	225,000				4.13	%		$	225,000			$	225,000				4.20	%
2027		212,000				212,000				3.44				212,000				212,000				3.44
2028		109,100				109,100				3.74				109,100				109,100				3.74
2029		100,000				100,000				3.50				50,000				50,000				3.35
	$	696,100			$	696,100				3.77	%		$	596,100			$	596,100				3.78	%

Interest expense on advances totaled $5.8 million and $5.1 million for the three months ended September 30, 2026 and 2025, and $16.4 million and $15.5 million for the nine months ended September 30, 2026 and 2025, respectively.

Note 9. Earnings Per Common Share

The following table presents a reconciliation of the number of common shares used in the calculation of basic and diluted earnings per common share:

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2026				2025				2026				2025
		(Dollars in thousands except share data)
Net income available to common stockholders		$	17,968			$	6,227			$	34,523			$	17,723
Common shares outstanding for basic EPS:
Weighted average common shares outstanding			24,187,901				24,000,948				24,177,446				23,983,560
Less: Weighted average unallocated Employee Stock    Ownership Plan (ESOP) shares			1,101,009				1,234,753				1,134,196				1,267,940
Basic weighted average common shares outstanding			23,086,892				22,766,195				23,043,250				22,715,620
Basic earnings per common share		$	0.78			$	0.27			$	1.50			$	0.78
Potential dilutive common shares:
Add: Dilutive effect of restricted stock units and stock options			563,478				369,253				453,478				277,035
Diluted weighted average common shares outstanding			23,650,370				23,135,448				23,496,728				22,992,655
Diluted earnings per common share		$	0.76			$	0.27			$	1.47			$	0.77

Common and equivalent shares resulting from the dilutive effect of outstanding stock options are calculated using the treasury stock method based on the average market price of the Company's common stock during the period.

For the three and nine months ended September 30, 2026, 129,500 and 163,833 average stock options, respectively, were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive.

For the three and nine months ended September 30, 2025, 100,000 and 256,000 average stock options, respectively, were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive.

Note 10. Commitments, Contingencies and Credit Risk

Financial Instruments With Off-Balance-Sheet Risk: In the normal course of business, financial instruments with off-balance-sheet risk may be used to meet the financing needs of customers. These financial instruments include commitments to extend credit and letters of

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Notes to Consolidated Financial Statements (Unaudited)

credit. These instruments involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized on the Consolidated Statements of Financial Condition. The contractual amounts of these instruments reflect the extent of involvement in particular classes of financial instruments.

The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. The same credit policies are used in making commitments and contractual obligations as for on-balance-sheet instruments. Financial instruments whose contractual amounts represent credit risk at September 30, 2026 and December 31, 2025 are as follows:

		September 30,				December 31,
		2026				2025
		(in thousands)
Commitments to grant mortgage loans		$	775,464			$	395,388
Unfunded commitments under lines of credit			30,008				86,284
Total commitments		$	805,472			$	481,672

Commitments to Grant Mortgage Loans: Commitments to grant mortgage loans are agreements to lend to a customer as long as all terms and conditions are met as established in the contract. Commitments generally have fixed expiration dates or other termination clauses, and may require payment of a fee by the borrower. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate and income-producing commercial properties. Material losses are not anticipated as a result of these transactions.

Commitments to Sell Loans at Lock-in Rates: In order to assure itself of a marketplace to sell its loans, the Bank has agreements with investors who will commit to purchase loans at locked-in rates. The Bank has off-balance sheet market risk to the extent that the Bank does not obtain matching commitments from these investors to purchase the loans. This will expose the Bank to the lower of cost or market valuation environment.

Repurchases, Indemnifications and Premium Recaptures: Loans sold by the Bank under investor programs are subject to repurchase or indemnification if they fail to meet the origination criteria of those programs. In addition, loans sold to investors are also subject to repurchase or indemnifications if the loan is two or three months delinquent during a set period which usually varies from six months to a year after the loan is sold. There are no open repurchase or indemnification requests for loans sold as a correspondent lender or where the Company acted as a broker in the transaction as of September 30, 2026.

Unfunded Commitments Under Lines of Credit: Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extension of credit to existing customers. These lines of credit are uncollateralized and usually contain a specified maturity date and, ultimately, may not be drawn upon to the total extent to which the Company is committed.

Unfunded Commitments with Oaktree: In December of 2021, the Bank committed to invest $5.0 million in Oaktree SBIC Fund, L.P. ("Oaktree"). As of September 30, 2026, the total unfunded commitment was $1.7 million.

Unfunded Commitments with Silvergate: In April of 2022, the Company committed to invest $5.2 million in EJF Silvergate Ventures Fund LP ("Silvergate"). As of September 30, 2026, the total unfunded commitment was $1.3 million.

Letters of Credit: Letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Letters of credit are largely cash secured.

Concentration by Geographic Location: Loans, commitments to extend credit and letters of credit have been granted to customers who are located primarily in the New York City metropolitan area. Generally, such loans most often are secured by residential properties. The loans are expected to be repaid from the borrowers' payment sources.

Legal Matters: The Company is involved in various legal proceedings which have arisen in the normal course of business. Management believes that resolution of these matters will not have a material effect on the Company’s financial condition or results of operations.

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Notes to Consolidated Financial Statements (Unaudited)

Note 11. Fair Value

The following fair value hierarchy is used based on the lowest level of input significant to the fair value measurement. There are three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate fair value:

Cash and Cash Equivalents, Placement with Banks, Accrued Interest Receivable, and Accrued Interest Payable: The carrying amount is a reasonable estimate of fair value. These assets and liabilities are not recorded at fair value on a recurring basis.

Available-for-Sale Securities: These financial instruments are recorded at fair value in the consolidated financial statements on a recurring basis. Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted prices are not available, then fair values are estimated by using pricing models (e.g., matrix pricing) or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency bonds and mortgage-backed securities. Level 3 securities are securities for which significant unobservable inputs are utilized. There were no changes in valuation techniques used to measure similar assets during the period.

FHLBNY Stock: FHLBNY stock is carried at cost and classified as restricted equity securities. As a member of the FHLBNY, the Company is required to purchase and hold this stock.

FRBNY Stock: FRBNY stock is carried at cost and classified as restricted equity securities. As a member of the FRBNY, the Company is required to purchase and hold this stock.

Loans Receivable: For variable rate loans, which reprice frequently and have no significant change in credit risk, carrying values are a reasonable estimate of fair values, adjusted for credit losses inherent in the portfolios. The fair value of fixed rate loans is estimated by discounting the future cash flows using estimated market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, adjusted for credit losses inherent in the portfolios. Individual assessed loans are valued using a present value discounted cash flow method, or the fair value of the collateral. Loans are not recorded at fair value on a recurring basis.

Mortgage Loans Held for Sale: Loans held for sale, at fair value, consists of loans originated for sale by the Bank and accounted for under the fair value option. These assets are valued using stated investor pricing for substantially equivalent loans as Level 2. In determining fair value, such measurements are derived based on observable market data, including whole-loan transaction pricing and similar market transactions adjusted for portfolio composition, servicing value and market conditions. Loans held for sale by the Bank are carried at fair value.

Under the fair value option, management has elected, on an instrument-by-instrument basis, fair value for substantially all forms of mortgage loans originated for sale on a recurring basis. As of September 30, 2026, the fair value carrying amount of mortgages held for sale measured under the fair value option was $3.7 million and the aggregate unpaid principal amounted to $3.6 million.

Other Real Estate Owned: Other real estate owned represents real estate acquired through foreclosure, and is recorded at fair value less estimated disposal costs on a nonrecurring basis. Fair value is based upon independent market prices, appraised values of the collateral or management's estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the asset is classified as Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the asset is classified as Level 3.

Deposits: The fair values of demand deposits, savings, NOW and money market accounts equal their carrying amounts, which represent the amounts payable on demand at the reporting date. Fair values for fixed-term, fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on certificates of deposit to a schedule of aggregated expected monthly maturities on such deposits. Deposits are not recorded at fair value on a recurring basis.

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FHLBNY Advances: The fair value of the advances is estimated using a discounted cash flow calculation that applies current market-based FHLBNY interest rates for advances of similar maturity to a schedule of maturities of such advances. These borrowings are not recorded at fair value on a recurring basis.

Off-Balance-Sheet Instruments: Fair values for off-balance-sheet instruments (lending commitments and standby letters of credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. Off-balance-sheet instruments are not recorded at fair value on a recurring basis.

The following tables detail the assets that are carried at fair value and measured at fair value on a recurring basis as of September 30, 2026 and December 31, 2025, and indicate the level within the fair value hierarchy utilized to determine the fair value:

						September 30, 2026
Description		Total				Level 1				Level 2				Level 3
		(in thousands)
Available-for-Sale Securities, at fair value:
Corporate bonds		$	13,133			$	787			$	12,346			$	—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			22,966				—				22,966				—
FHLMC Certificates			6,142				—				6,142				—
FNMA Certificates			37,162				—				37,162				—
GNMA Certificates			72				—				72				—
Mortgage Loans Held for Sale, at fair value			3,701				—				3,701				—
		$	83,176			$	787			$	82,389			$	—

						December 31, 2025
Description		Total				Level 1				Level 2				Level 3
		(in thousands)
Available-for-Sale Securities, at fair value:
U.S. Government Bonds		$	2,979			$	2,979			$	—			$	—
Corporate bonds			12,763				492				12,271				—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			26,346				—				26,346				—
FHLMC Certificates			7,125				—				7,125				—
FNMA Certificates			42,906				—				42,906				—
GNMA Certificates			77				—				77				—
Mortgage Loans Held for Sale, at fair value			3,388				—				3,388				—
		$	95,584			$	3,471			$	92,113			$	—

Management’s assessment and classification of an investment within a level can change over time based upon maturity or liquidity of the investment and would be reflected at the beginning of the quarter in which the change occurred.

The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of September 30, 2026 and December 31, 2025 and indicate the fair value hierarchy utilized to determine the fair value:

		September 30, 2026
		Total				Level 1				Level 2				Level 3
		(in thousands)
Individually evaluated loans		$	18,596			$	—			$	—			$	18,596
Premises held for sale		$	1,750			$	—			$	—			$	1,750

		December 31, 2025
		Total				Level 1				Level 2				Level 3
		(in thousands)
Individually evaluated loans		$	26,863			$	—			$	—			$	26,863

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

As of September 30, 2026 and December 31, 2025, the carrying values and estimated fair values of the Company's financial instruments were as follows:

		Carrying				Fair Value Measurements
		Amount				Level 1				Level 2				Level 3				Total
		(in thousands)
September 30, 2026
Financial assets:
Cash and cash equivalents		$	132,211			$	132,211			$	—			$	—			$	132,211
Available-for-sale securities, at fair value			79,475				787				78,688				—				79,475
Held-to-maturity securities, at amortized cost, net			241,176				—				228,857				—				228,857
Placement with banks			249				—				249				—				249
Mortgage loans held for sale, at fair value			3,701				—				3,701				—				3,701
Loans receivable, net			3,081,101				—				—				3,017,126				3,017,126
Accrued interest receivable			21,624				—				21,624				—				21,624
FHLBNY stock			34,064				34,064				—				—				34,064
FRBNY stock			10,725				—				10,725				—				10,725
Financial liabilities:
Deposits:
Demand deposits			244,860				244,860				—				—				244,860
Interest-bearing deposits			1,281,854				1,281,854				—				—				1,281,854
Certificates of deposit			840,994				—				836,764				—				836,764
Borrowings			696,100				—				687,317				—				687,317
Accrued interest payable			3,862				—				3,862				—				3,862

		Carrying				Fair Value Measurements
		Amount				Level 1				Level 2				Level 3				Total
		(in thousands)
December 31, 2025
Financial assets:
Cash and cash equivalents		$	126,154			$	126,154			$	—			$	—			$	126,154
Available-for-sale securities, at fair value			92,196				3,471				88,725				—				92,196
Held-to-maturity securities, at amortized cost			272,982				—				268,875				—				268,875
Placement with banks			249				—				249				—				249
Mortgage loans held for sale, at fair value			3,388				—				3,388				—				3,388
Loans receivable, net			2,599,258				—				—				2,577,298				2,577,298
Accrued interest receivable			17,905				—				17,905				—				17,905
FHLBNY stock			29,309				29,309				—				—				29,309
FRBNY stock			10,698				—				10,698				—				10,698
Financial liabilities:
Deposits:
Demand deposits			208,250				208,250				—				—				208,250
Interest-bearing deposits			1,133,882				1,133,882				—				—				1,133,882
Certificates of deposit			704,503				—				704,205				—				704,205
Borrowings			596,100				—				595,031				—				595,031
Accrued interest payable			3,788				—				3,788				—				3,788

The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods. There were no transfers of Level 3 assets in the fair value hierarchy at September 30, 2026 and December 31, 2025.

Off-Balance-Sheet Instruments: Loan commitments on which the committed interest rate is less than the current market rate are insignificant at September 30, 2026 and December 31, 2025.

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The fair value information about financial instruments are disclosed, whether or not recognized in the consolidated statements of financial condition, for which it is practicable to estimate that value. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The estimated fair value amounts for 2026 and 2025 have been measured as of their respective period-ends and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than amounts reported at each period.

The information presented should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company's assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other banks may not be meaningful.

Note 12. Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by the Federal Reserve Board, the OCC and the U.S. Department of Housing and Urban Development. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s operations and financial statements. Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation require the maintenance of minimum amounts and ratios (set forth in the table below) of total risk-based and Tier 1 capital to risk-weighted assets (as defined), common equity Tier 1 capital (as defined), and Tier 1 capital to adjusted total assets (as defined). As of September 30, 2026 and December 31, 2025, the applicable capital adequacy requirements specified below have been met.

The below minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions including dividend payments and certain discretionary bonus payments to executive officers. The applicable capital buffer for the Bank was 8.98% at September 30, 2026 and 13.6% at December 31, 2025.

The most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, common equity risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There were no conditions or events since then of which management is aware that have changed the Bank's category.

The Company's and the Bank’s actual capital amounts and ratios as of September 30, 2026 and December 31, 2025 as compared to regulatory requirements are as follows:

																To Be Well
																Capitalized Under
										For Capital						Prompt Corrective
		Actual								Adequacy Purposes						Action Provisions
		Amount				Ratio				Amount				Ratio		Amount				Ratio
		(Dollars in thousands)
September 30, 2026
Ponce Financial Group, Inc.
Total Capital to Risk-Weighted Assets		$	624,205				18.66	%		$	267,677			8.00%		$	334,596				10.00	%
Tier 1 Capital to Risk-Weighted Assets			590,817				17.66	%			200,758			6.00%			267,677				8.00	%
Common Equity Tier 1 Capital Ratio			365,817				10.93	%			150,568			4.50%			217,487				6.50	%
Tier 1 Capital to Total Assets			590,817				16.46	%			143,576			4.00%			179,471				5.00	%
Ponce Bank
Total Capital to Risk-Weighted Assets		$	566,305				16.98	%		$	266,781			8.00%		$	333,477				10.00	%
Tier 1 Capital to Risk-Weighted Assets			532,917				15.98	%			200,086			6.00%			266,781				8.00	%
Common Equity Tier 1 Capital Ratio			532,917				15.98	%			150,064			4.50%			216,760				6.50	%
Tier 1 Capital to Total Assets			532,917				14.85	%			143,571			4.00%			179,464				5.00	%

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

																		To Be Well
																		Capitalized Under
										For Capital								Prompt Corrective
		Actual								Adequacy Purposes								Action Provisions
		Amount				Ratio				Amount				Ratio				Amount				Ratio
		(Dollars in thousands)
December 31, 2025
Ponce Financial Group, Inc.
Total Capital to Risk-Weighted Assets		$	579,833				23.00	%		$	201,663				8.00	%		$	252,079				10.00	%
Tier 1 Capital to Risk-Weighted Assets			552,260				21.91	%			151,247				6.00	%			201,663				8.00	%
Common Equity Tier 1 Capital Ratio			327,260				12.98	%			113,436				4.50	%			163,851				6.50	%
Tier 1 Capital to Total Assets			552,260				17.27	%			127,880				4.00	%			159,850				5.00	%
Ponce Bank
Total Capital to Risk-Weighted Assets		$	543,076				21.63	%		$	200,847				8.00	%		$	251,059				10.00	%
Tier 1 Capital to Risk-Weighted Assets			515,502				20.53	%			150,635				6.00	%			200,847				8.00	%
Common Equity Tier 1 Capital Ratio			515,502				20.53	%			112,976				4.50	%			163,188				6.50	%
Tier 1 Capital to Total Assets			515,502				16.12	%			127,945				4.00	%			159,931				5.00	%

As of September 30, 2026 and December 31, 2025, the Bank was in compliance with the applicable minimum capital requirements specified above.

Note 13. Accumulated Other Comprehensive Loss

The accumulated other comprehensive loss is as follows:

		September 30, 2026
		December 31, 2025				Change				September 30, 2026
		(in thousands)
Unrealized losses on available-for-sale securities, net		$	(10,820	)		$	(1,825	)		$	(12,645	)
Total		$	(10,820	)		$	(1,825	)		$	(12,645	)

Included in the $1.8 million change in accumulated other comprehensive loss were $2.7 million unrealized loss on securities, $2.2 million of income tax effect and $1.4 million in valuation allowance reduction, net, for deferred tax asset in net income.

		September 30, 2025
		December 31, 2024				Change				September 30, 2025
		(in thousands)
Unrealized losses on available-for-sale securities, net		$	(15,297	)		$	3,711			$	(11,586	)
Total		$	(15,297	)		$	3,711			$	(11,586	)

Note 14. Transactions with Related Parties

Directors, executive officers and non-executive officers of the Company have been customers of and have had transactions with the Bank, and it is expected that such persons will continue to have such transactions in the future. Aggregate loan transactions with related parties for the three and nine months ended September 30, 2026 and 2025 were as follows:

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2026				2025				2026				2025
		(in thousands)
Beginning balance		$	6,527			$	8,256			$	9,092			$	7,671
Originations			3,761				675				3,861				1,400
Payments			(180	)			(43	)			(2,845	)			(183	)
Ending balance		$	10,108			$	8,888			$	10,108			$	8,888

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The Company held deposits in the amount of $8.6 million from directors and executive officers at both September 30, 2026 and December 31, 2025.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

General

Management’s discussion and analysis of the financial condition at September 30, 2026 and December 31, 2025, and results of operations for the three and nine months ended September 30, 2026 and 2025, is intended to assist in understanding the financial condition and results of operations of Ponce Financial Group, Inc. (the “Company”). The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1, of this quarterly report on Form 10-Q.

Overview

Our principal business is attracting retail deposits from the general public and investing those deposits together with funds generated from ongoing operations and borrowings, primarily in (1) loan originations for purchases and construction of multi-family residential properties, commercial business loans, commercial real estate mortgage loans, one-to-four family (including mixed-use properties, which are properties that contain both residential dwelling units and commercial units); (2) construction loans; (3) SBA loans; (4) mortgage-backed securities; and (5) U.S. government securities, corporate fixed-income securities and other marketable securities. We also originate certain other consumer loans including overdraft lines of credit. Our results of operations depend primarily on net interest income, which is the difference between the income earned on its interest-earning assets and the cost of our interest-bearing liabilities. We also generate non-interest income mainly from service charges and fees, late and prepayment charges, income on sale of mortgage loans and grant income. Our non-interest expense consists principally of employee compensation and benefits, occupancy and equipment costs, data processing expenses, direct loan expenses, professional fees, other operating expenses and income tax expense. Our results of operations can also be significantly affected by our periodic provision for credit losses.

Cautionary Note Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements, which can be identified by the use of words such as "estimate," "project," "intend," "anticipate," "assume," "plan," "seek," "expect," "will," "may," "should," "indicate," "would," "believe," "contemplate," "continue," "target" and words of similar meaning. These forward-looking statements include, but are not limited to:

•statements of the Company’s goals, intentions and expectations;

•statements regarding its business plans, prospects, growth and operating strategies;

•statements regarding the quality of its loan and investment portfolios; and

•estimates of the risks and future costs and benefits;

These forward-looking statements are based on current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

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The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

•the risk that the repurchase of Ponce Financial Group, Inc.’s Preferred Stock issued under the ECIP may not be consummated on the anticipated timeline, on the anticipated terms, or at all;

•the scope, duration and severity of rising interest rates, and its effects on our business and operations, our customers, including their ability to make timely payments on loans, our service providers, and on the economy and financial markets in general;

•changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy;

•changes in consumer spending, borrowing and savings habits;

•general economic conditions that are worse than expected, particularly in connection with low or negative growth in the. economy as well as economic uncertainty (including from an economic slowdown or recession, the federal government shutdown, unemployment, or limited growth in consumer income or spending), either nationally or in the market areas;

•volatility in the financial services sector, including failures or rumors of failures of other depository institutions, along with actions taken by governmental agencies to address such turmoil, and the effects on the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital;

•the Company’s ability to manage market risk, credit risk and operational risk in the current economic environment;

•changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses;

•the ability to access cost-effective funding;

•fluctuations in real estate values and real estate market conditions;

•demand for loans and deposits in the market areas;

•the Company’s ability to implement and change its business strategies;

•competition among depository and other financial institutions;

•inflation and changes in the interest rate environment that reduce the Company’s margins and yields, its mortgage banking revenues, the fair value of financial instruments or the level of loan originations, or increase the level of defaults, losses and prepayments on loans the Company have made and make;

•adverse changes in the securities or secondary mortgage markets;

•changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;

•monetary, fiscal and regulatory policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve Board;

•the sufficiency of liquidity and changes in our capital position;

•adverse changes related to the businesses of our partners;

•changes in the quality or composition of the Company’s loan or investment portfolios;

•technological changes that may be more difficult or expensive than expected; and cyber threats, attacks or events;

•the inability of third party providers to perform as expected;

•the Company’s ability to enter new markets successfully and capitalize on growth opportunities;

•the Company’s ability to successfully integrate into its operations, any assets, liabilities, customers, systems and management personnel the Company may acquire and management’s ability to realize related revenue synergies and cost savings within expected time frames, and any goodwill charges related thereto;

•changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board;

•the Company’s ability to retain key employees;

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•the Company’s compensation expense associated with equity allocated or awarded to its employees;

•the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events (such as pandemics), and of governmental and societal responses thereto; and

•changes in the financial condition, results of operations or future prospects of issuers of securities that the Company may own.

Additional factors that may affect the Company’s results are discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 under the heading “Risk Factors” filed with the Securities and Exchange Commission (“SEC”) on March 13, 2026.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. The Company is under no duty to and does not assume any obligation to update any forward-looking statements after the date they were made, whether as a result of new information, future events or otherwise.

Federal Economic Relief Funds To Aid Lending

Emergency Capital Investment Program

On June 7, 2022 (the “Original Closing Date”), the Company issued 225,000 shares of the Company’s Preferred Stock‎, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225,000,000 in cash to the Treasury, pursuant to the Treasury’s ECIP. Under the ECIP, Treasury provided investment capital directly to depository institutions that are CDFIs or MDIs or their holding companies, to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, in low-income and underserved communities. No dividends accrued or were due for the first two years after issuance. For years three through ten, depending upon the level of qualified and/or deep impact lending made in targeted communities, as defined in the ECIP guidelines, dividends will be at an annual rate of either 2.0%, 1.25% or 0.5% and, thereafter, will be fixed at one of the foregoing rates. If we are unable to make qualified and/or deep impact loans at required levels, we will be required to pay dividends at the higher annual rates. Additionally, we may make qualified and/or deep impact loans that are riskier than we otherwise would in an effort to meet the lending requirements for the lower dividend rates and/or to qualify for the purchase option under the Repurchase Agreement (as described below).

Holders of Preferred Stock generally do not have any voting rights, with the exception of voting rights on certain matters as outlined in the Certificate of Designations. The Treasury is the holder of the Preferred Stock and a governmental entity, and the Treasury may hold interests that are different from a private investor in exercising its voting and other rights. In the event of a liquidation, dissolution or winding up of the Company, the Preferred Stock will be entitled to a liquidation preference, subject to certain limitations, in the amount of the sum of $1,000 per share plus declared and unpaid dividends (without accumulation of undeclared dividends) on each share.

As a participant in the ECIP, the Company must comply with certain operating requirements. Specifically, the Company must adopt the Treasury's standards for executive compensation and luxury expenses for the period during which the Treasury holds equity issued under the ECIP. These restrictions may make it difficult to adequately compensate our management team, which could impact our ability to retain qualified management. Additionally, under the ECIP regulations, the Company cannot pay dividends or repurchase its common stock unless it meets certain income-based tests and has paid the required dividends on the Preferred Stock. In June 2024, the Company began paying dividends on its Preferred Stock, which dividends were $0.8 million and $0.8 million for the nine months ended September 30, 2026 and 2025, respectively.

On December 20, 2024, the Company entered into an ECIP Securities Purchase Option Agreement (the “Repurchase Agreement”) with Treasury. Pursuant to the Repurchase Agreement, Treasury has granted the Company an option to purchase all of the Preferred Stock during the Option Period, which is the first fifteen years following the Original Closing Date. The purchase price for the Preferred Stock pursuant to the purchase option is determined based on a formula equal to the present value of the Preferred Stock, calculated as set forth in the Repurchase Agreement, together with any accrued and unpaid dividends thereon, as of the closing date. Subject to variations in interest rates and the equity risk premium, which are components included in the purchase price calculation, the Company presently expects that the purchase price will be at a substantial discount from the face value of the Preferred Stock.

The purchase option may not be exercised unless and until at least one of the Threshold Conditions under the Repurchase Agreement has been met. The Threshold Conditions are as follows: during the ten years that follow the Original Closing Date (the “ECIP Period”) either (1) over any sixteen consecutive quarters, an average of at least 60% of the Company’s Total Originations, as defined pursuant to the terms of the ECIP, qualifies as “Deep Impact Lending,” as defined pursuant to the terms of the ECIP (the “Deep Impact Condition”); (2) over any twenty-four consecutive quarters, an average of at least 85% of the Company’s Total Originations qualifies as “Qualified Lending,” as defined pursuant to the terms of the ECIP (the “Qualified Lending Condition”); or (3) the Preferred Stock has a dividend rate of no more than 0.5%, which dividend rate is calculated pursuant to the ECIP and the terms thereof, at each of six consecutive Reset Dates, as defined in the ECIP.

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The earliest possible date by which a Threshold Condition may be met is June 30, 2026, which is the end of the sixteenth consecutive quarter following the Original Closing Date. The Company has met the Threshold Conditions to exercise the purchase option because the Company has reported sixteen consecutive quarters for which it has met the Deep Impact Condition. The Preferred Stock currently has a dividend rate of 0.5%.

The closing of the repurchase of the Preferred Stock, if consummated, would occur between thirty and ninety days following the satisfaction of all applicable conditions, including the Threshold Condition. In addition to the requirement that a Threshold Condition be met, the Repurchase Agreement requires that the Company meet certain other eligibility conditions in order to exercise the purchase option in the future, including compliance with the terms of the original ECIP purchase agreement and the terms of the Preferred Stock, maintaining qualification as either a CDFI or an MDI, and meeting other legal and regulatory criteria. Although the Company currently expects that it will satisfy all other necessary conditions, there can be no assurance if and when such repurchase will be consummated with Treasury.

The Company believes that consummation of the repurchase of the Preferred Stock as contemplated by the Repurchase Agreement would be beneficial to its stockholders. As such, the Company expects to continue to emphasize its qualified Deep Impact Lending.

The purchase option granted under the agreement is a freestanding financial instrument under GAAP. The Company analyzed the fair value of the repurchase option in accordance with ASC Topic 820 “Fair Value Measurements” and determined that the purchase option value is de minimis as of December 20, 2024, December 31, 2025 and September 30, 2026.

CDFI Financial Assistance Award

On February 6, 2025, the Bank received a $1.3 million grant from the U.S. Treasury as part of the CDFI Financial Assistance Award Program. This award is given to CDFIs to support their operations and expand services in economically distressed communities.

Banking Development District and Community Bank Deposit Program

The Bank's Westchester Avenue Branch located at 2244 Westchester Avenue in the Castle Hill area of the Bronx was approved as a Banking Development District ("BDD"). New York State’s BDD Program, administered by the Department of Financial Services ("DFS"), supports the establishment of bank and credit union branches in areas across New York State where there is a demonstrated need for banking services. To encourage participation, approved BDD branches receive access to subsidized and market rate deposits from New York State. On July 30, 2024, the Bank's Westchester Avenue Branch received total program deposits of $35.0 million. On June 24, 2025, the Bank's Westchester Avenue Branch received $10.0 million from the New York City Department of Finance. On June 23, 2026, the Bank's Westchester Avenue Branch received an additional $10.0 million from the New York City Department of Finance resulting in a total BDD Program deposit of $55.0 million.

On February 4, 2026, the Bank's Inwood Branch location 3879 9th Avenue in the Inwood area of New York was approved as a BDD by the DFS. In April of 2026, the Bank's Inwood Branch received a program deposit of $35.0 million from DFS. On June 23, 2026, the Bank's Inwood Branch received $10.0 million from the New York City Department of Finance resulting in a total BDD Program deposit of $45.0 million.

In addition, on May 20, 2026, the Bank received $20.0 million from the Community Bank Deposit Program.

Westchester Avenue Branch Re-Design

On February 27, 2025, Ponce Bank officers and administrators and members of the public celebrated the Bank’s transformed Westchester Avenue Branch at its grand reopening. The transformed Branch is the result of the State-of-the-art Banking Technologies combined with Community Centric Banking that is customer friendly and supportive.

The transformation relaunched a process aimed at reinforcing the role of each banking branch as a "community hub" that attracts new depositors and business customers, but anchors Ponce Bank branches as community-centric destinations. The revitalization efforts include Open Tellers that invite a more consultative experience, managers located at a central hub of the branch, private space for sensitive conversations, and meeting spaces as well as open areas with teleconferencing and AV equipment to encourage community-wide gatherings.

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Inwood, New York Branch

On September 16, 2025, Ponce Bank opened another branch at its new location 3879 9th Avenue, New York, NY 10034. With its ribbon cutting ceremony on October 6, 2025, the Bank noted that this new branch at this Inwood location will create opportunities for residents and small business owners in one of Manhattan's most vibrant and diverse neighborhoods.

Ponce Bank Conversion

On October 10, 2025, the Company's wholly-owned subsidiary, Ponce Bank (formerly a federally chartered stock savings association), completed its previously announced conversion to a national bank and commenced operations as Ponce Bank, National Association. In connection with the conversion of Ponce Bank, the Company also commenced operations as a bank holding company as of the same date. Further, the Company also became a financial holding company, which is an additional election that allows the Company to engage in activities that are financial in nature or incidental to a financial activity.

Ponce Bank sought to become a national bank in order to increase bank powers, including its eligibility to receive municipal deposits in New York. However, the Company and Ponce Bank do not expect any material changes in their core business as a result of the Company becoming a bank holding company and a financial holding company, and Ponce Bank becoming a national bank.

Critical Accounting Policies

Accounting estimates are necessary in the application of certain accounting policies and procedures and are particularly susceptible to significant change. Critical accounting policies are defined as those involving significant judgments and assumptions by management and that could have a material impact on the carrying value of certain assets, liabilities or on income under different assumptions or conditions. Management believes that the most critical accounting policy relates to the allowance for credit losses.

Allowance for credit losses in accordance with ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), was a critical accounting policy in the preparation of the consolidated financial statements as of and for the period ended September 30, 2026.

Allowance for credit loss. The ACL on loans is management's estimate of expected credit losses over the expected life of the loans at the reporting date. The ACL on loans is increased through a provision for credit losses (“PCL”) recognized in the Consolidated Statements of Operations and by recoveries of amounts previously charged off. The ACL on loans is reduced by charge-offs on loans. Loan charge-offs are recognized when Management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral-dependent individually analyzed loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan.

Policies with respect to the methodology used to determine the allowance for credit losses is a critical accounting policy and estimate because of its importance to presentation of the Company's financial condition and results of operations and high level of subjectivity. The critical accounting policy involves a higher degree of complexity and requires management to make difficult and subjective judgments which often require assumptions or estimates about highly uncertain matters. The use of different judgments, assumptions, and estimates could result in material differences in the results of operations or financial condition. The allowance for credit losses policy and its application is reviewed periodically, and at least annually, with the Audit Committee of the Board of Directors.

If our loss rate factor was to increase 10 basis points, our reserve would increase by approximately $3.1 million. Likewise, if our loss rate factor was to decrease 10 basis points, our reserve would decrease by approximately $3.1 million.

The discussion and analysis of the financial condition and results of operations are based on the Company’s consolidated financial statements, which are prepared in conformity with GAAP. The preparation of these consolidated financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. The estimates and assumptions used are based on historical experience and various other factors and are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations.

Deferred Tax Asset Valuation Allowance. Management has been actively monitoring and evaluating the realizability of the New York State and New York City deferred tax assets over multiple reporting periods. Given the significant impact of the loan subtraction modification and apportionment on New York financial taxable income, management determined that it was appropriate to defer any

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decision regarding the release of the valuation allowance until the 2025 tax returns were filed and actual tax return data could be incorporated into the analysis, rather than relying on estimated amounts.

Following the filing of the 2025 tax returns in the third quarter of 2026, management updated its analysis to reflect actual filed return information and reassessed the realizability of the deferred tax assets. Based on this updated evaluation, management reached the conclusion outlined below.

After weighing all available positive and negative evidence in accordance with ASC 740, Management concluded that the positive evidence outweighs the negative evidence, particularly in light of the Company’s sustained New York State and New York City taxable income, demonstration of utilization of net operating loss carryforwards, and projected future earnings.

Accordingly, Management determined that it is more likely than not that the Company will realize its New York State and New York City deferred tax assets as of September 30, 2026. As a result, the Company released the full valuation allowance previously recorded against its New York State and New York City deferred tax assets, including amounts related to both continuing operations and accumulated other comprehensive income (“AOCI”), in the third quarter 2026.

The valuation allowance release was measured based on the beginning-of-year deferred tax asset balances and recorded as a discrete benefit within income tax expense in continuing operations in the third quarter of 2026. This treatment is consistent with ASC 740-10-45-20, which requires that changes in valuation allowances resulting from changes in realizability assessments be recognized in continuing operations, even when the underlying deferred tax assets originated in AOCI.

For the three and nine months ended September 30, 2026, the Company recognized a $10.5 million valuation allowance release against its New York State and New York City deferred tax assets. The $10.5 million release includes $1.4 million related to deferred tax assets on unrealized losses on available-for-sale securities, which, in accordance with GAAP, was recognized in income tax expense rather than other comprehensive income.

Real Property Held for Sale

During the July 2026 meeting of the Board of Directors, management presented to the Board of Directors an offer that the Company had received to sell its Flushing office located at 135-12 Northern Boulevard. The Company had been working with a broker with an offer from a third party. Management believes that all the criteria has been met to move the real property from Premises and equipment to assets held for sale. For the three months ended September 30, 2026, the Company recognized a mark-to-market loss on real property held for sale of $1.2 million reported as non-interest income in the Consolidated Statement of Operations.

Company's Growth

The Company continues its relationship with Raisin Solutions US LLC ("Raisin"), a fintech that focuses on gathering deposits for financial institutions through the Internet. As of September 30, 2026 and December 31, 2025, the Company had $657.7 million and $643.9 million, respectively, in such deposits, which the Company classifies as core deposits.

Because the Company, through Ponce Bank, is an MDI and a CDFI, deposits made by other financial institutions may be treated as CRA credits by those depository institutions.

At December 31, 2018, the first year after our initial public offering, the Company had approximately $1.06 billion in assets, $918.5 million in loans, net of allowance for credit losses of $12.7 million, and $809.8 million in deposits. The Company has since grown to $3.69 billion in assets, $3.08 billion in loans, net of allowance for credit losses of $29.2 million, and $2.37 billion in deposits at September 30, 2026, all while investing in infrastructure, implementing digital banking and diversifying its product offering. Now, the Company believes that it is poised to enhance its presence, locally and in similar communities outside New York, as a leading CDFI and MDI financial institution holding company.

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Asset Quality Ratios

The table below indicates the Key Metrics at or for the three months ended:

		At or for the Three Months Ended
		September 30,				December 31,				September 30,
		2026				2025				2025
Allowance for credit losses on loans as a percentage of total loans			0.94	%			0.97	%			0.98	%
Allowance for credit losses on loans as a percentage of nonperforming loans (1)			156.85	%			94.74	%			88.88	%
Net (charge-offs) recoveries to average outstanding loans (2)			(0.05	%)			(0.13	%)			(0.03	%)
Non-performing assets as a percentage of total assets			0.50	%			0.83	%			0.88	%

(1)Allowance for credit losses on loans as a percentage of nonperforming loans increased for the three months ended September 30, 2026 as a result of an increase in allowance for credit losses on loans to $29.2 million and a decrease in nonperforming loans to $18.6 million.

(2)Annualized.

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

Total Assets. Total consolidated assets increased $462.7 million, or 14.4%, to $3.69 billion at September 30, 2026 from $3.22 billion at December 31, 2025. The increase in total assets is largely attributable to increases of $481.8 million in net loans receivable, $14.3 million in deferred tax assets, primarily as a result of a $10.5 million valuation allowance released, $6.1 million in cash and cash equivalents, $4.8 million in Federal Home Loan Bank of New York stock, $3.7 million in accrued interest receivable and $2.2 million in other assets, partially offset by decreases of $31.8 million in held-to-maturity securities, $12.7 million in available-for-sale securities, $4.7 million in premises and equipment, net, and $1.3 million in right of use assets. The $4.7 million decrease in premises and equipment, net was largely attributable to $1.8 million of real property that was reclassified to held for sale and is reflected in other assets in the Consolidated Statements of Financial Condition and a $1.2 million loss on real property that is reflected in total non-interest income in the Consolidated Statements of Operations.

Cash and Cash Equivalents. Cash and cash equivalents increased $6.1 million, or 4.8%, to $132.2 million at September 30, 2026, compared to $126.2 million at December 31, 2025. The increase in cash and cash equivalents was primarily the result of an increase of $321.1 million in net deposits, $100.0 million in net proceeds in borrowings, $41.9 million in proceeds from maturities and principal repayment on securities and $10.9 million from sale of loans. The increase in cash and cash equivalents was offset primarily by increases of $497.7 million in net loans, $4.8 million in net (purchases) redemption of FHLBNY stock and $3.7 million in accrued interest receivables.

Securities. The Company securities portfolio decreased $12.7 million, or 13.8%, to $79.5 million in available-for-sale at September 30, 2026 from $92.2 million at December 31, 2025 and decreased $31.8 million, or 11.7%, to $241.2 million in held-to-maturity at September 30, 2026 from $273.0 million at December 31, 2025. The decrease in the securities portfolio was primarily due to regular principal payments and the maturity of one available-for-sale security in the amount of $3.0 million.

Portfolio Maturities and Yields. The composition and maturities of the investment securities portfolio at September 30, 2026 are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur. Adjustable-rate mortgage-backed securities are included in the period in which interest rates are next scheduled to adjust. The weighted average yield is calculated based on the yield to maturity

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weighted for the size of each debt security over the entire portfolio of debt securities. The weighted average yields on tax-exempt obligations have been computed on a tax-equivalent basis.

		One Year or Less								More than One Year through Five Years								More than Five Years through Ten Years								More than Ten Years								Total
		Amortized Cost				Weighted Average Yield				Amortized Cost				Weighted Average Yield				Amortized Cost				Weighted Average Yield				Amortized Cost				Weighted Average Yield				Amortized Cost				Fair Value				Weighted Average Yield
		(Dollars in thousands)
Available-for-Sale    Securities:
Corporate Bonds		$	—				—	%		$	7,000				6.61	%		$	6,500				3.90	%		$	—				—	%		$	13,500			$	13,133				5.31	%
Mortgage-Backed    Securities
Collateralized Mortgage Obligations (1)			—				—				—				—				—				—	%			28,421				1.46	%			28,421				22,966				1.46	%
FHLMC Certificates			—				—				—				—				7,103				1.15	%			—				—	%			7,103				6,142				1.15	%
FNMA Certificates			—				—				—				—				6,943				1.53	%			39,883				1.80	%			46,826				37,162				1.76	%
GNMA Certificates			—				—				—				—				—				—	%			71				5.89	%			71				72				5.89	%
Total available-for-sale securities		$	—				—	%		$	7,000				6.61	%		$	20,546				2.15	%		$	68,375				1.66	%		$	95,921			$	79,475				2.13	%
Held-to-Maturity    Securities:
Corporate Bonds		$	—				—	%		$	—				—	%		$	7,500				6.40	%		$	—				—	%			7,500			$	7,377				6.40	%
Mortgage-Backed    Securities
Collateralized Mortgage Obligations (1)			1,879				3.36	%			—				—				—				—	%			138,869				4.03	%			140,748				133,566				4.02	%
FHLMC Certificates			—				—				—				—				—				—	%			2,901				4.78	%			2,901				2,785				4.78	%
FNMA Certificates			—				—				2,401				3.49	%			3,130				3.38	%			75,005				4.28	%			80,536				75,378				4.22	%
SBA Certificates			—				—				—				—				3,517				4.35	%			6,180				4.52	%			9,697				9,751				4.46	%
Allowance for Credit Losses			—				—				—				—				—				—	%			—				—	%			(206	)			—				—
Total held-to-maturity securities		$	1,879				3.36	%		$	2,401				3.49	%		$	14,147				5.22	%		$	222,955				4.14	%		$	241,176			$	228,857				4.19	%

(1)Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.

Gross Loans Receivable. The composition of gross loans receivable at September 30, 2026 and at December 31, 2025 and the percentage of each classification to total loans are summarized as follows:

		September 30, 2026								December 31, 2025								Increase (Decrease)
		Amount				Percent				Amount				Percent				Dollars				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 Family residential (1)		$	413,064				13.3	%		$	434,374				16.6	%			(21,310	)			(4.9	%)
Multifamily residential			1,051,642				33.8	%			756,542				28.8	%			295,100				39.0	%
Nonresidential properties			557,449				17.9	%			526,210				20.1	%			31,239				5.9	%
Construction and land			1,016,809				32.6	%			854,096				32.5	%			162,713				19.1	%
Total mortgage loans			3,038,964				97.5	%			2,571,222				98.0	%			467,742				18.2	%
Non-mortgage loans:
Business loans			75,852				2.4	%			53,063				2.0	%			22,789				42.9	%
Consumer loans			581				—	%			625				—	%			(44	)			(7.0	%)
Total non-mortgage loans			76,433				2.5	%			53,688				2.0	%			22,745				42.4	%
Total		$	3,115,397				100.0	%		$	2,624,910				100.0	%		$	490,487				18.7	%

(1)Includes both investor owned and owner occupied 1-4 family residential properties combined, which were previously reported separately.

Contractual Maturities. The following table sets forth the contractual maturities of the Bank’s total loan portfolio, excluding mortgage loans held for sale, at September 30, 2026. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. The table presents contractual maturities and does not reflect repricing or the effect of prepayments. Actual maturities may differ.

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		At September 30, 2026
		One year or less				More than one year  to five years				More than five to fifteen years				More than fifteen years				Total
		(in thousands)
Mortgage loans:
1-4 family residential		$	2,969			$	12,338			$	167,028			$	230,729			$	413,064
Multifamily residential			182,981				184,931				426,184				257,546				1,051,642
Nonresidential properties			38,602				127,521				365,941				25,385				557,449
Construction and land			528,899				487,910				—				—				1,016,809
Total mortgage loans			753,451				812,700				959,153				513,660				3,038,964
Nonmortgage loans:
Business loans			42,659				11,218				18,840				3,135				75,852
Consumer loans			104				477				—				—				581
Total nonmortgage loans			42,763				11,695				18,840				3,135				76,433
Total		$	796,214			$	824,395			$	977,993			$	516,795			$	3,115,397

The following table sets forth the Bank's fixed and adjustable-rate loans at September 30, 2026 that are contractually due after September 30, 2027.

		Due After September 30, 2027
		Fixed				Adjustable				Total
		(in thousands)
Mortgage loans:
1-4 family residential		$	17,918			$	392,177				410,095
Multifamily residential			39,646				829,015				868,661
Nonresidential properties			7,866				510,981				518,847
Construction and land			39,562				448,348				487,910
Total mortgage loans			104,992				2,180,521				2,285,513
Nonmortgage loans:
Business loans			5,364				27,829				33,193
Consumer loans			465				12				477
Total nonmortgage loans			5,829				27,841				33,670
Total		$	110,821			$	2,208,362			$	2,319,183

Based on current internal loan reviews, the Company believes that the quality of our underwriting, our weighted average loan-to-value ratio of 50.2% and our customer selection processes have served us well and provided us with a reliable base with which to maintain a well-protected loan portfolio.

Multifamily residential loans increased $295.1 million, or 39.0%, when compared to December 31, 2025. The majority of the increases in multifamily residential loans were from loans that were refinanced from construction and land loans to new permanent loan facilities.

Construction and land loans increased $162.7 million, or 19.1%, when compared to December 31, 2025. The $162.7 million increase in construction and land mortgage loans is related to a combination of funding of existing commitments prior to 2026 and new commitments, offset by loans that were refinanced from construction and land loans to new permanent loan facilities.

Our commitments to grant new mortgage loans increased by $380.1 million as of September 30, 2026 compared to December 31, 2025. See Note 10 ("Commitments, Contingencies and Credit Risk") of Notes to the Consolidated Financial Statements.

The Company had 83 construction and land mortgage loans with balances of $1.02 billion as indicated in the table above. Of those loans, 25 loans with aggregate balances of $439.6 million, or 43.2%, of the total, have a percentage of completion of 80% or more. Within those 25 loans there are 16 loans with balances of $262.0 million that are 100% completed and received their certificates of occupancy.

Commercial real estate loans, as defined by applicable banking regulations, include multifamily residential, nonresidential properties, and construction and land mortgage loans. At September 30, 2026 and December 31, 2025, approximately 2.3% and 3.1%, respectively, of the outstanding principal balance of the Bank’s commercial real estate mortgage loans were secured by owner-occupied

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commercial real estate. Owner-occupied commercial real estate is similar in many ways to commercial and industrial lending in that these loans are generally made to businesses predominantly on the basis of the cash flows of the business rather than on valuation of the real estate.

Banking regulations have established guidelines relating to the amount of construction and land mortgage loans and investor- owned commercial real estate mortgage loans of 100% and 300% of total risk-based capital, respectively. Should a bank’s ratios be in excess of these guidelines, banking regulations generally require an increased level of monitoring in these lending areas by bank management. The Bank’s policy is to operate with up to a 350% ratio for construction and land mortgage loans and up to 550% for investor-owned commercial real estate mortgage loans. Both ratios are calculated by dividing certain types of loan balances for each of the two categories by the Bank’s total risk-based capital. At September 30, 2026 and December 31, 2025, the Bank’s construction and land mortgage loans as a percentage of total risk-based capital was 178.4% and 156.7%, respectively. Investor-owned commercial real estate mortgage loans as a percentage of total risk-based capital was 462.5% and 393.1% as of September 30, 2026 and December 31, 2025, respectively. At September 30, 2026, the Bank was above the 100% guidelines established by the banking regulations and under the 350% guidelines set by the Bank for construction and land mortgage loans and above the 300% guideline established by banking regulators but under the 550% guidelines set by the Bank for investor owned commercial real estate mortgage loans. Management believes that it has established the appropriate level of controls to monitor the Bank’s lending in these areas.

Allocation of Allowance for Credit Losses. The table below presents a breakdown of the allowance for credit losses by loan class.

		September 30, 2026								December 31, 2025
						Percent of Loans								Percent of Loans
		Allowance for				in Each Category				Allowance for				in Each Category
		Credit Losses				to Total Loans				Credit Losses				to Total Loans
		(in thousands)
Mortgage loans:
1-4 family residential		$	4,978				13.3	%		$	3,873				16.6	%
Multifamily residential			9,505				33.8	%			9,041				28.8	%
Nonresidential properties			4,932				17.9	%			4,353				20.1	%
Construction and land			8,259				32.6	%			6,149				32.5	%
Total mortgage loans			27,674				97.5	%			23,416				98.0	%
Nonmortgage loans:
Business loans			1,477				2.4	%			2,017				2.0	%
Consumer loans			17				—	%			16				—	%
Total nonmortgage loans			1,494				2.5	%			2,033				2.0	%
Total		$	29,168				100.0	%		$	25,449				100.0	%

Loans Held For Sale. Loans held for sale, at fair value, at September 30, 2026 increased $0.3 million, or 9.2%, to $3.7 million from $3.4 million at December 31, 2025.

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Deposits. The composition of deposits at September 30, 2026 and December 31, 2025 and changes in dollars and percentages are summarized as follows:

		September 30, 2026								December 31, 2025								Increase (Decrease)
						Percent								Percent
		Amount				of Total				Amount				of Total				Dollars				Percent
		(Dollars in thousands)
Demand		$	244,860				10.4	%		$	208,250				10.2	%		$	36,610				17.6	%
Interest-bearing deposits:
NOW/IOLA accounts			76,392				3.2	%			84,012				4.1	%			(7,620	)			(9.1	%)
Money market accounts			898,719				38.0	%			779,532				38.1	%			119,187				15.3	%
Reciprocal deposits			188,016				7.9	%			152,630				7.5	%			35,386				23.2	%
Savings accounts			118,727				5.0	%			117,708				5.8	%			1,019				0.9	%
Total NOW, money market, reciprocal and savings			1,281,854				54.1	%			1,133,882				55.4	%			147,972				13.1	%
Certificates of deposit of $250K or more			202,702				8.6	%			202,500				9.9	%			202				0.1	%
Brokered certificates of deposit  (1)			144,569				6.1	%			67,942				3.3	%			76,627				112.8	%
Listing service deposits (1)			994				—	%			4,150				0.2	%			(3,156	)			(76.0	%)
Certificates of deposit less than $250K			492,729				20.8	%			429,911				21.0	%			62,818				14.6	%
Total certificates of deposit			840,994				35.5	%			704,503				34.4	%			136,491				19.4	%
Total interest-bearing deposits			2,122,848				89.6	%			1,838,385				89.8	%			284,463				15.5	%
Total deposits		$	2,367,708				100.0	%		$	2,046,635				100.0	%		$	321,073				15.7	%

(1)At September 30, 2026 and December 31, 2025, there were no individual listing service deposits amounting to $250,000 or more, and no individual brokered certificates of deposit amounting to $250,000 or more.

When wholesale funding is necessary to complement the Company's core deposit base, management determines which source is best suited to address both liquidity risk and interest rate risk in line with management objectives. The Company’s Interest Rate Risk Policy imposes limitations on overall wholesale funding and noncore funding reliance. The overall reliance on wholesale funding and noncore funding were within those policy limitations as of September 30, 2026 and December 31, 2025. The Management Asset/Liability Committee generally meets on a monthly basis to review funding needs, if any, and to ensure the Company operates within the approved limitations.

The following table sets forth the average balance and weighted average rate of deposits for the periods indicated.

		For the Nine Months Ended September 30,
		2026												2025
		Average Balance				Percent				Weighted Average Rate				Average Balance				Percent				Weighted Average Rate
		(Dollars in thousands)
Deposit type:
NOW/IOLA		$	76,737				3.5	%			0.69	%		$	73,034				3.6	%			0.64	%
Money market			1,029,534				46.4	%			3.65	%			884,115				43.5	%			4.11	%
Savings			120,029				5.4	%			0.10	%			118,656				5.8	%			0.09	%
Certificates of deposit			752,638				33.9	%			3.64	%			754,531				37.2	%			3.84	%
Interest-bearing deposits			1,978,938				89.2	%			3.32	%			1,830,336				90.2	%			3.60	%
Non-interest bearing demand			239,239				10.8	%			—	%			199,978				9.8	%			—	%
Total deposits		$	2,218,177				100.0	%			2.96	%		$	2,030,314				100.0	%			3.25	%

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The following table presents the time deposits with balances exceeding the $250,000 Federal Deposits Insurance Corporation ("FDIC") insurance limit by maturity at September 30, 2026.

Maturity Period:	(in thousands)
Three months or less	$		75,002
Over three months through six months			66,652
Over six months through one year			40,301
More than one year			20,747
Total	$		202,702

At September 30, 2026, the portion of uninsured deposits in excess of $250,000 FDIC insurance limit was $471.1 million.

Borrowings. The Bank had outstanding borrowings at September 30, 2026 and December 31, 2025 of $646.1 million and $596.1 million in term advances from the FHLBNY. The Bank had one overnight line of credit advance in the amount of $50.0 million from the FHLBNY at September 30, 2026 and no overnight line of credit advance from the FHLBNY at December 31, 2025. Additionally, the Bank had two unsecured lines of credit in the amount of $75.0 million with two correspondent banks for both periods at September 30, 2026 and December 31, 2025. The Bank did not have any term and overnight line of credit advances from the FRBNY at September 30, 2026 and December 31, 2025.

Stockholders’ Equity. The Company’s consolidated stockholders’ equity increased $36.7 million, or 6.8%, to $578.3 million as of September 30, 2026 from $541.5 million as of December 31, 2025. The $36.7 million increase in stockholders’ equity was largely attributable to $35.4 million in net income, $1.9 million impact to additional paid in capital as a result of share-based compensation, $1.9 million from release of ESOP shares and $0.2 million from exercise of stock options, offset by $1.8 million in other comprehensive loss and $0.8 million related to the dividend paid on preferred shares during the nine months ended September 30, 2026.

Comparison of Results of Operations for the Three Months Ended September 30, 2026 and 2025

The discussion of the Company’s results of operations for the three months ended September 30, 2026 and 2025 are presented below. The results of operations for interim periods may not be indicative of future results.

Overview. Net income available to common stockholders was $18.0 million for the three months ended September 30, 2026 compared to net income available to common stockholders of $6.2 million for the three months ended September 30, 2025. Earnings per basic share was $0.78 and diluted share was $0.76 for the three months ended September 30, 2026 compared to earnings per basic and diluted share of $0.27 for the three months ended September 30, 2025. The $11.7 million increase of net income available to common stockholders from the three months ended September 30, 2025, was due to an increase of $8.7 million in net interest income and a benefit of $8.1 million for income taxes as a result of a $10.5 million valuation allowance release, offset by increases of $2.6 million in non-interest expense and $1.9 million in provision for credit losses and a decrease of $0.6 million in non-interest income. Net income for the three months ended September 30, 2026 and 2025, which excludes $0.3 million and $0.3 million, respectively, in dividends on preferred shares, were $18.2 million and $6.5 million, respectively.

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The following table presents the results of operations for the periods indicated:

		For the Three Months Ended September 30,								Increase (Decrease)
		2026				2025				Dollars				Percent
		(Dollars in thousands)
Interest and dividend income		$	57,504			$	46,847			$	10,657				22.8	%
Interest expense			23,515				21,599				1,916				8.9	%
Net interest income			33,989				25,248				8,741				34.6	%
Provision for credit losses			3,219				1,364				1,855				136.0	%
Net interest income after provision for credit losses			30,770				23,884				6,886				28.8	%
Non-interest income			850				1,492				(642	)			(43.0	%)
Non-interest expense			19,236				16,618				2,618				15.8	%
Income before income taxes			12,384				8,758				3,626				41.4	%
(Benefit) provision for income taxes			(5,865	)			2,250				(8,115	)			(360.7	%)
Net income		$	18,249			$	6,508			$	11,741				180.4	%
Dividends on preferred shares			281				281				—				—	%
Net income available to common stockholders		$	17,968			$	6,227			$	11,741				188.6	%
Earnings per common share:
Basic		$	0.78			$	0.27			$	0.51				188.9	%
Diluted		$	0.76			$	0.27			$	0.49				181.5	%

Interest and Dividend Income. Interest and dividend income increased $10.7 million, or 22.8%, to $57.5 million for the three months ended September 30, 2026 from $46.8 million for the three months ended September 30, 2025. Interest income on loans receivable, which is the Company’s primary source of income, increased $11.4 million, or 27.5%, to $52.9 million for the three months ended September 30, 2026 from $41.5 million for the three months ended September 30, 2025.

Total interest and dividend income on securities, FHLBNY stock and deposits due from banks decreased $0.8 million or 14.3%, to $4.6 million for the three months ended September 30, 2026 from $5.4 million for the three months ended September 30, 2025. The decrease was primarily attributable to decreases of $0.8 million in interest on securities and $0.1 million in interest on deposits due from banks, offset by an increase of $0.2 million in dividend on FHLBNY and FRBNY stocks.

The following table presents interest income on loans receivable for the periods indicated:

		For the Three Months Ended September 30,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
1-4 Family residential		$	7,162			$	6,649			$	513				7.7	%
Multifamily residential			15,729				11,436				4,293				37.5	%
Nonresidential properties			9,964				6,646				3,318				49.9	%
Construction and land			18,116				15,100				3,016				20.0	%
Business loans			1,927				1,636				291				17.8	%
Consumer loans			12				19				(7	)			(36.8	%)
Total interest income on loans receivable		$	52,910			$	41,486			$	11,424				27.5	%

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The following table presents interest and dividend income on securities and FHLBNY stock and deposits due from banks for the periods indicated:

		For the Three Months Ended September 30,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Interest on deposits due from banks		$	901			$	978			$	(77	)			(7.9	%)
Interest on securities			3,067				3,913				(846	)			(21.6	%)
Dividend on FHLBNY and FRBNY stocks			626				470				156				33.2	%
Total interest and dividend income		$	4,594			$	5,361			$	(767	)			(14.3	%)

Interest Expense. Interest expense increased $1.9 million, or 8.9%, to $23.5 million for the three months ended September 30, 2026 from $21.6 million for the three months ended September 30, 2025.

The following table presents interest expense for the periods indicated:

		For the Three Months Ended September 30,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Certificates of deposit		$	7,313			$	6,553			$	760				11.6	%
Money market			10,254				9,831				423				4.3	%
Savings			31				28				3				10.7	%
NOW/IOLA			145				137				8				5.8	%
Borrowings			5,772				5,050				722				14.3	%
Total interest expense		$	23,515			$	21,599			$	1,916				8.9	%

Net Interest Income. Net interest income increased $8.7 million, or 34.6%, to $34.0 million for the three months ended September 30, 2026 from $25.2 million for the three months ended September 30, 2025. The $8.7 million increase in net interest income for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was attributable to an increase of $10.7 million in total interest and dividend income primarily due to increases in average loans receivable, offset by an increase of $1.9 million in interest expense.

Net interest rate spread increased by 60 basis points to 3.11% for the three months ended September 30, 2026 from 2.51% for the three months ended September 30, 2025. The increase in the net interest rate spread for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was primarily due to an increase in the average yields on interest-earning assets of 41 basis points to 6.53% for the three months ended September 30, 2026 from 6.12% for the three months ended September 30, 2025, and a decrease in the average rates paid on interest-bearing liabilities of 19 basis points to 3.42% for the three months ended September 30, 2026 from 3.61% for the three months ended September 30, 2025.

Net interest margin increased 56 basis points for the three months ended September 30, 2026, to 3.86% from 3.30% for the three months ended September 30, 2025.

Non-Interest Income. Non-interest income decreased $0.6 million, or 43.0%, to $0.9 million for the three months ended September 30, 2026 from $1.5 million for the three months ended September 30, 2025. The $0.6 million decrease in non-interest income for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was largely attributable to a loss of $1.2 million on real property held for sale recognized in the third quarter of 2026, $0.4 million in grant income recognized in the third quarter of 2025 and a decrease of $0.2 million in late and prepayment charges, offset by an increase of $1.0 million in other non-interest income, which includes a $0.4 million gain from the Company’s investment in Oaktree and Silvergate funds.

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The following table presents non-interest income for the periods indicated:

		For the Three Months Ended September 30,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Service charges and fees		$	611			$	539			$	72				13.4	%
Brokerage commissions			—				8				(8	)			(100.0	%)
Late and prepayment charges			232				385				(153	)			(39.7	%)
Income on sale of mortgage loans			188				166				22				13.3	%
Grant income			—				429				(429	)			(100.0	%)
Loss on real property held for sale			(1,166	)			—				(1,166	)			—	%
Other			985				(35	)			1,020			*
Total non-interest income		$	850			$	1,492			$	(642	)			(43.0	%)

* represents more than 100%.

Non-Interest Expense. Non-interest expense increased $2.6 million, or 15.8%, to $19.2 million for the three months ended September 30, 2026 from $16.6 million for the three months ended September 30, 2025. The $2.6 million increase in non-interest expense was mainly attributable to an increase of $2.6 million in compensation and benefits as a result of new hires.

The following table presents non-interest expense for the periods indicated:

		For the Three Months Ended September 30,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Compensation and benefits		$	10,509			$	7,868			$	2,641				33.6	%
Occupancy and equipment			3,879				3,934				(55	)			(1.4	%)
Data processing expenses			1,202				1,296				(94	)			(7.3	%)
Direct loan expenses			89				155				(66	)			(42.6	%)
Insurance and surety bond premiums			332				318				14				4.4	%
Office supplies, telephone and postage			147				170				(23	)			(13.5	%)
Professional fees			1,305				1,409				(104	)			(7.4	%)
Marketing and promotional expenses			144				184				(40	)			(21.7	%)
Federal deposit insurance and regulatory assessment			495				266				229				86.1	%
Other operating expenses			1,134				1,018				116				11.4	%
Total non-interest expense		$	19,236			$	16,618			$	2,618				15.8	%

Income Tax Provision. The Company had a benefit for income taxes of $5.9 million for the three months ended September 30, 2026 compared to a provision for income taxes of $2.3 million for the three months ended September 30, 2025. For the three months ended September 30, 2026, the Company recognized a $10.5 million valuation allowance release against its New York State and New York City deferred tax assets.

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Average Balance Sheets

The following table sets forth average outstanding balances, average yields and rates, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. Average balances are derived from average daily 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.

		For the Three Months Ended September 30,
		2026												2025
		Average												Average
		Outstanding								Average				Outstanding								Average
		Balance				Interest				Yield/Rate (1)				Balance				Interest				Yield/Rate (1)
		(Dollars in thousands)
Interest-earning assets:
Loans (2)		$	3,025,085				52,910				6.94	%		$	2,499,268			$	41,486				6.59	%
Securities (3)			332,919				3,067				3.65	%			418,513				3,913				3.71	%
Other (4)			133,827				1,527				4.53	%			119,262				1,448				4.82	%
Total interest-earning assets			3,491,831				57,504				6.53	%			3,037,043				46,847				6.12	%
Non-interest-earning assets			97,667												96,095
Total assets		$	3,589,498											$	3,133,138
Interest-bearing liabilities:
NOW/IOLA		$	76,801			$	145				0.75	%		$	78,526			$	137				0.69	%
Money market			1,109,784				10,254				3.67	%			958,277				9,831				4.07	%
Savings			119,109				31				0.10	%			119,159				28				0.09	%
Certificates of deposit			794,477				7,313				3.65	%			698,019				6,553				3.72	%
Total deposits			2,100,171				17,743				3.35	%			1,853,981				16,549				3.54	%
Borrowings			624,361				5,772				3.67	%			521,100				5,050				3.84	%
Total interest-bearing liabilities			2,724,532				23,515				3.42	%			2,375,081				21,599				3.61	%
Non-interest-bearing liabilities:
Non-interest-bearing demand			251,823				—								199,922				—
Other non-interest-bearing liabilities			43,730				—								31,406				—
Total non-interest-bearing liabilities			295,553				—								231,328				—
Total liabilities			3,020,085				23,515								2,606,409				21,599
Total equity			569,413												526,729
Total liabilities and total equity		$	3,589,498								3.42	%		$	3,133,138								3.61	%
Net interest income						$	33,989											$	25,248
Net interest rate spread (5)											3.11	%											2.51	%
Net interest-earning assets (6)		$	767,299											$	661,962
Net interest margin (7)											3.86	%											3.30	%
Average interest-earning assets to interest-bearing liabilities											128.16	%											127.87	%

(1)Annualized where appropriate.

(2)Loans include loans and mortgage loans held for sale, at fair value.

(3)Securities include available-for-sale securities and held-to-maturity securities.

(4)Includes FHLBNY demand account and FHLBNY stock dividends and FRBNY demand deposits.

(5)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(6)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(7)Net interest margin represents net interest income divided by average total interest-earning assets.

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Rate/Volume Analysis

The following table presents the effects of changing rates and volumes on the Company’s net interest income for the periods indicated. The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume.

		For the Three Months Ended September 30,
		2026 vs. 2025
		Increase (Decrease) Due to								Total Increase
		Volume				Rate				(Decrease)
		(In thousands)
Interest-earning assets:
Loans (1)		$	8,728			$	2,696			$	11,424
Securities (2)			(800	)			(46	)			(846	)
Other			177				(98	)			79
Total interest-earning assets			8,105				2,552				10,657
Interest-bearing liabilities:
NOW/IOLA			(3	)			11				8
Money market			1,554				(1,131	)			423
Savings			—				3				3
Certificates of deposit			906				(146	)			760
Total deposits			2,457				(1,263	)			1,194
Borrowings			1,001				(279	)			722
Total interest-bearing liabilities			3,458				(1,542	)			1,916
Change in net interest income		$	4,647			$	4,094			$	8,741

(1) Loans include loans and mortgage loans held for sale, at fair value.

(2) Securities include available-for-sale securities and held-to-maturity securities.

Comparison of Results of Operations for the Nine Months Ended September 30, 2026 and 2025

The discussion of the Company’s results of operations for the nine months ended September 30, 2026 and 2025 are presented below. The results of operations for interim periods may not be indicative of future results.

Overview. Net income available to common stockholders was $34.5 million for the nine months ended September 30, 2026 compared to net income available to common stockholders of $17.7 million for the nine months ended September 30, 2025. Earnings per basic share was $1.50 and diluted share was $1.47 for the nine months ended September 30, 2026 compared to earnings per basic share of $0.78 and diluted share of $0.77 for the nine months ended September 30, 2025. The $16.8 million increase of net income available to common stockholders from the nine months ended September 30, 2025, was due to an increase of $20.4 million in net interest income and a benefit of $6.5 million for income taxes as a result of a $10.5 million valuation allowance release, offset by increases of $4.3 million in provision for credit losses and $4.2 million in non-interest expense and a decrease of $1.5 million in non-interest income. Net income for the nine months ended September 30, 2026 and 2025 which excludes $0.8 million and $0.8 million, respectively, in dividends on preferred shares, were $35.4 million and $18.6 million, respectively.

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The following table presents the results of operations for the periods indicated:

		For the Nine Months Ended September 30,								Increase (Decrease)
		2026				2025				Dollars				Percent
		(Dollars in thousands)
Interest and dividend income		$	157,818			$	136,704			$	21,114				15.5	%
Interest expense			65,542				64,827				715				1.1	%
Net interest income			92,276				71,877				20,399				28.4	%
Provision (benefit) for credit losses			7,023				2,705				4,318				159.6	%
Net interest income after provision (benefit) for credit losses			85,253				69,172				16,081				23.3	%
Non-interest income			4,419				5,933				(1,514	)			(25.5	%)
Non-interest expense			54,611				50,375				4,236				8.4	%
Income before income taxes			35,061				24,730				10,331				41.8	%
(Benefit) provision for income taxes			(306	)			6,163				(6,469	)			(105.0	%)
Net income			35,367				18,567				16,800				90.5	%
Dividends on preferred shares			844				844				—				—	%
Net income available to common stockholders		$	34,523			$	17,723			$	16,800				94.8	%
Earnings per common share:
Basic		$	1.50			$	0.78			$	0.72				92.3	%
Diluted		$	1.47			$	0.77			$	0.70				90.9	%

Interest and Dividend Income. Interest and dividend income increased $21.1 million, or 15.5%, to $157.8 million for the nine months ended September 30, 2026 from $136.7 million for the nine months ended September 30, 2025. Interest income on loans receivable, which is the Company’s primary source of income, increased $24.8 million, or 20.9%, to $143.7 million for the nine months ended September 30, 2026 from $118.9 million for the nine months ended September 30, 2025.

Total interest and dividend income on securities, FHLBNY stock and deposits due from banks decreased $3.7 million, or 20.8%, to $14.1 million for the nine months ended September 30, 2026 from $17.8 million for the nine months ended September 30, 2025. The decrease was primarily attributable to decreases of $3.2 million in interest on securities and $0.8 million in interest on deposits due from banks, offset by an increase of $0.3 million in dividend on FHLBNY and FRBNY stocks.

The following table presents interest income on loans receivable for the periods indicated:

		For the Nine Months Ended September 30,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
1-4 Family residential		$	20,434			$	20,910			$	(476	)			(2.3	%)
Multifamily residential			40,917				30,751				10,166				33.1	%
Nonresidential properties			28,032				18,060				9,972				55.2	%
Construction and land			48,418				45,351				3,067				6.8	%
Business loans			5,889				3,779				2,110				55.8	%
Consumer loans			37				62				(25	)			(40.3	%)
Total interest income on loans receivable		$	143,727			$	118,913			$	24,814				20.9	%

The following table presents interest and dividend income on securities and FHLBNY stock and deposits due from banks for the periods indicated:

		For the Nine Months Ended September 30,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Interest on deposits due from banks		$	2,625			$	3,453			$	(828	)			(24.0	%)
Interest on securities			9,474				12,680				(3,206	)			(25.3	%)
Dividend on FHLBNY and FRBNY stocks			1,992				1,658				334				20.1	%
Total interest and dividend income		$	14,091			$	17,791			$	(3,700	)			(20.8	%)

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Interest Expense. Interest expense increased $0.7 million, or 1.1%, to $65.5 million for the nine months ended September 30, 2026 from $64.8 million for the nine months ended September 30, 2025.

The following table presents interest expense for the periods indicated:

		For the Nine Months Ended September 30,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Certificates of deposit		$	20,513			$	21,689			$	(1,176	)			(5.4	%)
Money market			28,120				27,172				948				3.5	%
Savings			87				84				3				3.6	%
NOW/IOLA			397				352				45				12.8	%
Borrowings			16,425				15,530				895				5.8	%
Total interest expense		$	65,542			$	64,827			$	715				1.1	%

Net Interest Income. Net interest income increased $20.4 million, or 28.4%, to $92.3 million for the nine months ended September 30, 2026 from $71.9 million for the nine months ended September 30, 2025. The $20.4 million increase in net interest income for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was attributable to an increase of $21.1 million in total interest and dividend income primarily due to increases in average loans receivable, offset by an increase of $0.7 million in interest expense.

Net interest rate spread increased by 57 basis points to 2.96% for the nine months ended September 30, 2026 from 2.39% for the nine months ended September 30, 2025. The increase in the net interest rate spread for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was primarily due to an increase in the average yields on interest-earning assets of 31 basis points to 6.36% for the nine months ended September 30, 2026 from 6.05% for the nine months ended September 30, 2025, and a decrease in the average rates paid on interest-bearing liabilities of 26 basis points to 3.40% for the nine months ended September 30, 2026 from 3.66% for the nine months ended September 30, 2025.

Net interest margin increased 54 basis points for the nine months ended September 30, 2026, to 3.72% from 3.18% for the nine months ended September 30, 2025.

Non-Interest Income. Non-interest income decreased $1.5 million, or 25.5%, to $4.4 million for the nine months ended September 30, 2026 from $5.9 million for the nine months ended September 30, 2025. The $1.5 million decrease in non-interest income for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was largely attributable to $1.2 million loss on real property held for sale, $0.8 million in grant income that was recognized during the nine months ended September 30, 2025, decreases of $0.5 million in late and prepayment charges and $0.4 million in income on sale of SBA loans, offset by increases of $1.3 million in other non-interest income and $0.2 million in service charges and fees.

The following table presents non-interest income for the periods indicated:

		For the Nine Months Ended September 30,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Service charges and fees		$	1,750			$	1,575			$	175				11.1	%
Brokerage commissions			—				12				(12	)			(100.0	%)
Late and prepayment charges			1,096				1,612				(516	)			(32.0	%)
Income on sale of mortgage loans			469				483				(14	)			(2.9	%)
Income on sale of SBA loans			—				404				(404	)			(100.0	%)
Grant income			—				857				(857	)			(100.0	%)
Loss on real property held for sale			(1,166	)			—				(1,166	)			—	%
Other			2,270				990				1,280				129.3	%
Total non-interest income		$	4,419			$	5,933			$	(1,514	)			(25.5	%)

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Non-Interest Expense. Non-interest expense increased $4.2 million, or 8.4%, to $54.6 million for the nine months ended September 30, 2026 from $50.4 million for the nine months ended September 30, 2025. The $4.2 million increase in non-interest expense was mainly attributable to an increase of $5.0 million in compensation and benefits as a result of new hires, partially offset by decreases of $0.4 million in direct loan expenses, $0.3 million in occupancy and equipment and $0.1 million in other non-interest expense.

The following table presents non-interest expense for the periods indicated:

		For the Nine Months Ended September 30,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Compensation and benefits		$	28,242			$	23,275			$	4,967				21.3	%
Occupancy and equipment			11,452				11,754				(302	)			(2.6	%)
Data processing expenses			3,616				3,636				(20	)			(0.6	%)
Direct loan expenses			397				784				(387	)			(49.4	%)
Insurance and surety bond premiums			997				930				67				7.2	%
Office supplies, telephone and postage			492				514				(22	)			(4.3	%)
Professional fees			4,121				4,140				(19	)			(0.5	%)
Marketing and promotional expenses			562				533				29				5.4	%
Federal deposit insurance and regulatory assessment			1,312				1,273				39				3.1	%
Other operating expenses			3,420				3,536				(116	)			(3.3	%)
Total non-interest expense		$	54,611			$	50,375			$	4,236				8.4	%

Income Tax Provision. The Company had a benefit for income taxes of $0.3 million for the nine months ended September 30, 2026 compared to a provision for income taxes of $6.2 million for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, the Company recognized a $10.5 million valuation allowance release against its New York State and New York City deferred tax assets.

.

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Average Balance Sheets

The following table sets forth average outstanding balances, average yields and rates, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. Average balances are derived from average daily 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.

		For the Nine Months Ended September 30,
		2026												2025
		Average												Average
		Outstanding								Average				Outstanding								Average
		Balance				Interest				Yield/Rate (1)				Balance				Interest				Yield/Rate (1)
		(Dollars in thousands)
Interest-earning assets:
Loans (2)		$	2,836,725				143,727				6.77	%		$	2,439,280			$	118,913				6.52	%
Securities (3)			346,223				9,474				3.66	%			445,130				12,680				3.81	%
Other (4)			136,792				4,617				4.51	%			135,600				5,111				5.04	%
Total interest-earning assets			3,319,740				157,818				6.36	%			3,020,010				136,704				6.05	%
Non-interest-earning assets			96,477												103,059
Total assets		$	3,416,217											$	3,123,069
Interest-bearing liabilities:
NOW/IOLA		$	76,737			$	397				0.69	%		$	73,034			$	352				0.64	%
Money market			1,029,534				28,120				3.65	%			884,115				27,172				4.11	%
Savings			120,029				87				0.10	%			118,656				84				0.09	%
Certificates of deposit			752,638				20,513				3.64	%			754,531				21,689				3.84	%
Total deposits			1,978,938				49,117				3.32	%			1,830,336				49,297				3.60	%
Borrowings			594,800				16,425				3.69	%			536,851				15,530				3.87	%
Total interest-bearing liabilities			2,573,738				65,542				3.40	%			2,367,187				64,827				3.66	%
Non-interest-bearing liabilities:
Non-interest-bearing demand			239,239				—								199,978				—
Other non-interest-bearing liabilities			44,440				—								37,206				—
Total non-interest-bearing liabilities			283,679				—								237,184				—
Total liabilities			2,857,417				65,542								2,604,371				64,827
Total equity			558,800												518,698
Total liabilities and total equity		$	3,416,217								3.40	%		$	3,123,069								3.66	%
Net interest income						$	92,276											$	71,877
Net interest rate spread (5)											2.96	%											2.39	%
Net interest-earning assets (6)		$	746,002											$	652,823
Net interest margin (7)											3.72	%											3.18	%
Average interest-earning assets to interest-bearing liabilities											128.99	%											127.58	%

(1)Annualized where appropriate.

(2)Loans include loans and mortgage loans held for sale, at fair value.

(3)Securities include available-for-sale securities and held-to-maturity securities.

(4)Includes FHLBNY demand account and FHLBNY stock dividends and FRBNY demand deposits.

(5)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(6)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(7)Net interest margin represents net interest income divided by average total interest-earning assets.

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Rate/Volume Analysis

The following table presents the effects of changing rates and volumes on the Company’s net interest income for the periods indicated. The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume.

		For the Nine Months Ended September 30,
		2026 vs. 2025
		Increase (Decrease) Due to								Total Increase
		Volume				Rate				(Decrease)
		(In thousands)
Interest-earning assets:
Loans (1)		$	19,375			$	5,439			$	24,814
Securities (2)			(2,817	)			(389	)			(3,206	)
Other			45				(539	)			(494	)
Total interest-earning assets			16,603				4,511				21,114
Interest-bearing liabilities:
NOW/IOLA			18				27				45
Money market			4,469				(3,521	)			948
Savings			1				2				3
Certificates of deposit			(54	)			(1,122	)			(1,176	)
Total deposits			4,434				(4,614	)			(180	)
Borrowings			1,676				(781	)			895
Total interest-bearing liabilities			6,110				(5,395	)			715
Change in net interest income		$	10,493			$	9,906			$	20,399

(1) Loans include loans and mortgage loans held for sale, at fair value.

(2) Securities include available-for-sale securities and held-to-maturity securities.

Credit Quality

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $21.8 million at September 30, 2026 compared to $30.2 million at December 31, 2025 and $32.4 million at September 30, 2025.

During the three months ended September 30, 2026, a provision for credit loss of $3.2 million on loans was recorded, consisting of $2.0 million charged on the funded portion and $1.2 million charged on the unfunded portion on loans. During the three months ended September 30, 2025, a provision for credit loss of $1.4 million on loans was recorded, consisting of $0.9 million charged on the funded portion on loans and $0.5 million charged on the unfunded portion on loans.

During the nine months ended September 30, 2026, a provision for credit loss of $7.0 million on loans was recorded, consisting of $4.9 million charged on the funded portion and $2.1 million charged on the unfunded portion on loans. During the nine months ended September 30, 2025, a credit loss provision of $2.7 million on loans was recorded, consisting of $2.9 million charged on the funded portion on loans and offset by $0.2 million benefit on the unfunded portion on loans.

Management of Market Risk

General. The most significant form of market risk is interest rate risk because, as a financial institution, the majority of the Bank’s assets and liabilities are sensitive to changes in interest rates. Therefore, a principal part of our operations is to manage interest rate risk and limit the exposure of its financial condition and results of operations to changes in market interest rates. The Bank’s Asset/Liability Committee ("ALCO") is responsible for evaluating the interest rate risk inherent in the Bank’s assets and liabilities, for determining the level of risk that is appropriate, given the business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with policies and guidelines approved by the Board of Directors. The Bank currently utilizes a third-party modeling solution that is prepared on a quarterly basis, to evaluate its sensitivity to changing interest rates, given the Bank’s

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business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the Board of Directors.

Net Interest Income Simulation Models. Management utilizes a respected, sophisticated third party designed asset liability modeling software that measures the Bank’s earnings through simulation modeling. Earning assets, interest-bearing liabilities and off-balance sheet financial instruments are combined with forecasts of interest rates for the next 12 months and are combined with other factors in order to produce various earnings simulations over that same 12-month period. To limit interest rate risk, the Bank has policy guidelines for earnings risk which seek to limit the variance of net interest income under instantaneous changes to interest rates. As of September 30, 2026, in the event of an instantaneous upward and downward change in rates from management's interest rate forecast over the next twelve months, assuming a static balance sheet, the following estimated changes are calculated:

		Net Interest Income				Year 1 Change
Rate Shift (1)		Year 1 Forecast				from Level
		(Dollars in thousands)
+400		$	122,836			(10.97%)
+300			126,530			(8.29%)
+200			130,358			(5.52%)
+100			134,119			(2.79%)
Level			137,975			— %
-100			140,308			1.69%
-200			143,058			3.68%
-300			145,661			5.57%
-400			148,934			7.94%

(1)Assumes an instantaneous uniform change in interest rates at all maturities.

Although an instantaneous and severe shift in interest rates was used in this analysis to provide an estimate of exposure under these scenarios, management believes that a gradual shift in interest rates would have a more modest impact. Further, the earnings simulation model does not take into account factors such as future balance sheet growth, changes in product mix, changes in yield curve relationships, and changing product spreads that could alter any potential adverse impact of changes in interest rates.

The behavior of the deposit portfolio in the baseline forecast and in alternate interest rate scenarios set out in the table above is a key assumption in the projected estimates of net interest income. The projected impact on net interest income in the table above assumes no change in deposit portfolio size or mix from the baseline forecast in alternative rate environments. In higher rate scenarios, any customer activity resulting in the replacement of low-cost or non-interest-bearing deposits with higher-yielding deposits or market-based funding would reduce the benefit in those scenarios.

At September 30, 2026, the earnings simulation model indicated that the Bank was in compliance with the Board of Directors approved Interest Rate Risk Policy.

Economic Value of Equity Model. While earnings simulation modeling attempts to determine the impact of a changing rate environment to net interest income, the Economic Value of Equity Model (“EVE”) measures estimated changes to the economic values of assets, liabilities and off-balance sheet items as a result of interest rate changes. Economic values are determined by discounting expected cash flows from assets, liabilities and off-balance sheet items, which establishes a base case EVE. Rates are then shocked as prescribed by the Interest Rate Risk Policy to measure the sensitivity in EVE values for each of those shocked rate scenarios versus the base case. The Interest Rate Risk Policy sets limits for those sensitivities. At September 30, 2026, the EVE modeling calculated the following estimated changes in EVE due to instantaneous upward and downward changes in rates:

														EVE as a Percentage of Present
														Value of Assets (3)
						Estimated Increase (Decrease) in												Increase
Change in Interest		Estimated				EVE								EVE				(Decrease)
Rates (basis points) (1)		EVE (2)				Amount				Percent				Ratio (4)				(basis points)
		(Dollars in thousands)
+400		$	466,678			$	(118,350	)			(20.23	%)			13.78	%			(2,023	)
+300			493,572				(91,456	)			(15.63	%)			14.36	%			(1,563	)
+200			522,599				(62,429	)			(10.67	%)			14.98	%			(1,067	)
+100			553,547				(31,481	)			(5.38	%)			15.63	%			(538	)
Level			585,028				—				—	%			16.26	%			—
-100			613,361				28,333				4.84	%			16.77	%			484
-200			644,371				59,343				10.14	%			17.31	%			1,014
-300			675,171				90,143				15.41	%			17.80	%			1,541
-400			718,604				133,576				22.83	%			18.52	%			2,283

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(1)Assumes an instantaneous uniform change in interest rates at all maturities.

(2)EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.

(3)Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.

(4)EVE Ratio represents EVE divided by the present value of assets.

Although an instantaneous and severe shift in interest rates was used in this analysis to provide an estimate of exposure under these scenarios, management believes that a gradual shift in interest rates would have a more modest impact. Since EVE measures the discounted present value of cash flows over the estimated lives of instruments, the change in EVE does not directly correlate to the degree that earnings would be impacted over a shorter time horizon (i.e., the current year). Further, EVE does not take into account factors such as future balance sheet growth, changes in product mix, changes in yield curve relationships, and changing product spreads that could alter the adverse impact of changes in interest rates.

At September 30, 2026, the EVE model indicated that the Bank was in compliance with the Board of Directors’ approved Interest Rate Risk Policy.

Most Likely Earnings Simulation Models. Management also analyzes a most-likely earnings simulation scenario that projects the expected change in rates based on a forward yield curve adopted by management using expected balance sheet volumes forecasted by management. Separate growth assumptions are developed for loans, investments, deposits, etc. Other interest rate scenarios analyzed by management may include delayed rate shocks, yield curve steepening or flattening, or other variations in rate movements to further analyze or stress the balance sheet under various interest rate scenarios. Each scenario is evaluated by management and weighted to determine the most likely result. These processes assist management to better anticipate financial results and, as a result, management may determine the need to review other operating strategies and tactics which might enhance results or better position the balance sheet to reduce interest rate risk going forward.

Each of the above analyses may not, on its own, be an accurate indicator of how net interest income will be affected by changes in interest rates. Income associated with interest-earning assets and costs associated with interest-bearing liabilities may not be affected uniformly by changes in interest rates. In addition, the magnitude and duration of changes in interest rates may have a significant impact on net interest income. For example, although certain assets and liabilities may have similar maturities or periods of repricing, they may react in different degrees to changes in market interest rates. Interest rates on certain types of assets and liabilities fluctuate in advance of changes in general market rates, while interest rates on other types may lag behind changes in general market rates. In addition, certain assets, such as adjustable rate mortgage loans, have features (generally referred to as interest rate caps and floors) which limit changes in interest rates. Prepayment and early withdrawal levels also could deviate significantly from those assumed in calculating the maturity of certain instruments. The ability of many borrowers to service their debts also may decrease during periods of rising interest rates. The ALCO Committee reviews each of the above interest rate sensitivity analyses along with several different interest rate scenarios as part of its responsibility to provide a satisfactory, consistent level of profitability within the framework of established liquidity, loan, investment, borrowing and capital policies.

Management's model governance, model implementation and model validation processes and controls are subject to review in the Bank’s regulatory examinations to ensure they are in compliance with the most recent regulatory guidelines and industry and regulatory practices. Management utilizes a respected, sophisticated third party designed asset liability modeling software to help ensure implementation of management's assumptions into the model are processed as intended in a robust manner. That said, there are numerous assumptions regarding financial instrument behaviors that are integrated into the model. The assumptions are formulated by combining observations gleaned from the Bank’s historical studies of financial instruments and the best estimations of how, if at all, these instruments may behave in the future given changes in economic conditions, technology, etc. These assumptions may prove to be inaccurate. Additionally, given the large number of assumptions built into Bank’s asset liability modeling software, it is difficult, at best, to compare its results to other banks.

The ALCO Committee may determine that the Company should over time become more or less asset or liability sensitive depending on the underlying balance sheet circumstances and its conclusions regarding interest rate fluctuations in future periods.

On September 18, 2024, the Federal Reserve announced that the target range for the federal funds rate decreased by 50 basis points to 4.75% to 5.00% effective on September 19, 2024. It marked the first rate cut in over four years and signaled a shift in strategy aimed at bolstering the economy and preventing a rise in unemployment. In November 2024, the Federal Reserve lowered the target range by 25 basis points to 4.50% to 4.75% and in December 2024 another 25 basis points to 4.25% to 4.50%. The Federal Reserve reduced the federal funds rate by 25 basis points each in September 2025, October 2025 and December 2025, resulting in the federal funds rate range of 3.50% to 3.75%. At its January 2026, March 2026, April 2026, June 2026 and July 2026 meetings, the Federal Reserve kept its interest rate steady at 3.50% to 3.75%. On September 16, 2026, the Federal Reserve increased the federal funds rate by 25 basis points to 3.75% to 4.00%. Our net interest income may be negatively impacted if the demand for loans decreases due to the

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higher rates, alone or in tandem with higher inflation, or it may be negatively impacted if we fail to appropriately time adjustments to our funding costs and the rates we earn on our loans.

GAP Analysis. In addition, management analyzes interest rate sensitivity by monitoring the Bank’s interest rate sensitivity "gap." The interest rate sensitivity gap is the difference between the amount of interest-earning assets maturing or repricing within a specific time period and the amount of interest bearing-liabilities maturing or repricing within that same time period. A gap is considered positive when the amount of interest rate sensitive assets maturing or repricing during a period exceeds the amount of interest rate sensitive liabilities maturing or repricing during the same period, and a gap is considered negative when the amount of interest rate sensitive liabilities maturing or repricing during a period exceeds the amount of interest rate sensitive assets maturing or repricing during the same period.

The following table sets forth the Company’s interest-earning assets and its interest-bearing liabilities at September 30, 2026, which are anticipated to reprice or mature in each of the future time periods shown based upon certain assumptions. The amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the earlier of term to repricing or the contractual maturity of the asset or liability. The table sets forth an approximation of the projected repricing of assets and liabilities at September 30, 2026, on the basis of contractual maturities, anticipated prepayments and scheduled rate adjustments. The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and as a result of contractual rate adjustments on adjustable-rate loans.

		September 30, 2026
		Time to Repricing
		Zero to 90 Days				Zero to 180 Days				Zero Days to One Year				Zero Days to Five Years				Five Years Plus				Total Earning Assets & Costing Liabilities				Non Earning Assets & Non Costing Liabilities				Total
		(Dollars in thousands)
Assets:
Interest-bearing deposits in banks		$	104,486			$	104,486			$	104,486			$	104,486			$	—			$	104,486			$	27,725			$	132,211
Securities (1)			23,726				38,141				61,613				178,243				158,046				336,289				(15,638	)			320,651
Placement with banks			—				—				—				249				—				249				—				249
Net loans (includes LHFS)			826,164				1,183,815				1,608,620				2,999,566				112,329				3,111,895				(27,093	)			3,084,802
FHLBNY stock			34,064				34,064				34,064				34,064				—				34,064				—				34,064
FRBNY stock			10,725				10,725				10,725				10,725				—				10,725				—				10,725
Other assets			—				—				—				—				—				—				103,975				103,975
Total		$	999,165			$	1,371,231			$	1,819,508			$	3,327,333			$	270,375			$	3,597,708			$	88,969			$	3,686,677
Liabilities:
Non-maturity deposits		$	111,348			$	222,696			$	445,392			$	1,207,142			$	345,039				1,552,181			$	(25,467	)		$	1,526,714
Certificates of deposit			333,232				490,287				739,025				840,877				—				840,877				117				840,994
Borrowings			275,000				275,000				487,000				696,100				—				696,100				—				696,100
Other liabilities			—				—				—				—				—				—				44,609				44,609
Total liabilities			719,580				987,983				1,671,417				2,744,119				345,039				3,089,158				19,259				3,108,417
Capital			—				—				—				—				—				—				578,260				578,260
Total liabilities and capital		$	719,580			$	987,983			$	1,671,417			$	2,744,119			$	345,039			$	3,089,158			$	597,519			$	3,686,677
Asset/liability gap		$	279,585			$	383,248			$	148,091			$	583,214			$	(74,664	)		$	508,550
Gap/total assets ratio			7.58	%			10.40	%			4.02	%			15.82	%			-2.03	%			13.79	%

(1)Includes available-for-sale securities and held-to-maturity securities.

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The following table sets forth the Company’s interest-earning assets and its interest-bearing liabilities at December 31, 2025, which are anticipated to reprice or mature in each of the future time periods shown based upon certain assumptions. The amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the earlier of term to repricing or the contractual maturity of the asset or liability. The table sets forth an approximation of the projected repricing of assets and liabilities at December 31, 2025, on the basis of contractual maturities, anticipated prepayments and scheduled rate adjustments. The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and as a result of contractual rate adjustments on adjustable-rate loans.

		December 31, 2025
		Time to Repricing
		Zero to 90 Days				Zero to 180 Days				Zero Days to One Year				Zero Days to Five Years				Five Years Plus				Total Earning Assets & Costing Liabilities				Non Earning Assets & Non Costing Liabilities				Total
		(Dollars in thousands)
Assets:
Interest-bearing deposits in banks		$	97,643			$	97,643			$	97,643			$	97,643			$	—			$	97,643			$	28,511			$	126,154
Securities (1)			27,429				37,828				63,963				235,594				143,993				379,587				(14,409	)			365,178
Placement with banks			—				—				—				249				—				249				—				249
Net loans (includes LHFS)			784,821				1,022,289				1,454,001				2,568,380				53,141				2,621,521				(18,875	)			2,602,646
FHLBNY stock			29,309				29,309				29,309				29,309				—				29,309				—				29,309
FRBNY stock			10,698				10,698				10,698				10,698				—				10,698				—				10,698
Other assets			—				—				—				—				—				—				89,736				89,736
Total		$	949,900			$	1,197,767			$	1,655,614			$	2,941,873			$	197,134			$	3,139,007			$	84,963			$	3,223,970
Liabilities:
Non-maturity deposits		$	79,323			$	158,647			$	317,295			$	975,246			$	375,933			$	1,351,179			$	(9,047	)		$	1,342,132
Certificates of deposit			283,828				450,633				594,370				704,503				—				704,503				—				704,503
Borrowings			75,000				75,000				225,000				596,100				—				596,100				—				596,100
Other liabilities			—				—				—				—				—				—				39,686				39,686
Total liabilities			438,151				684,280				1,136,665				2,275,849				375,933				2,651,782				30,639				2,682,421
Capital			—				—				—				—				—				—				541,549				541,549
Total liabilities and capital		$	438,151			$	684,280			$	1,136,665			$	2,275,849			$	375,933			$	2,651,782			$	572,188			$	3,223,970
Asset/liability gap		$	511,749			$	513,487			$	518,949			$	666,024			$	(178,799	)		$	487,225
Gap/total assets ratio			15.87	%			15.93	%			16.10	%			20.66	%			-5.55	%			15.11	%

(1)Includes available-for-sale securities and held-to-maturity securities.

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the net interest income and EVE tables presented assume that the composition of the interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the net interest income and EVE tables provide an indication of the interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on net interest income and EVE and will differ from actual results. Furthermore, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates. Additionally, certain assets, such as adjustable-rate loans, have features that restrict changes in interest rates both on a short-term basis and over the life of the asset.

In the event of changes in interest rates, prepayment and early withdrawal levels would likely deviate significantly from those assumed in calculating the gap table.

Interest rate risk calculations also may not reflect the fair values of financial instruments. For example, decreases in market interest rates can increase the fair values of loans, deposits and borrowings.

Liquidity and Capital Resources

Liquidity describes the ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of the Company’s customers and to fund current and future planned expenditures.

Although maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and competition. The most liquid assets are cash and interest-bearing deposits in banks. The levels of these assets are dependent on operating, financing, lending, and investing activities during any given period. The Bank had $646.1 million and $596.1 million of outstanding term advances from FHLBNY at September 30, 2026 and December 31, 2025, respectively. The Bank had one overnight line of credit advance in the amount of $50.0 million from the FHLBNY at September 30, 2026 and no overnight line of credit advance from the FHLBNY at December 31, 2025.

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Net cash provided by operating activities was $35.4 million and $20.7 million for the nine months ended September 30, 2026 and 2025, respectively. Net cash used in investing activities, which consists primarily of disbursements for loan originations, net purchase and redemption of FHLBNY stock, purchase of FRB stock and purchase of equipment offset by principal collections on loans and proceeds from maturities, calls and principal repayments on securities was ($449.8) million and ($106.0) million for the nine months ended September 30, 2026 and 2025, respectively. Net cash provided by financing activities, consisting of activities in borrowing, deposit accounts, dividends paid on preferred stock and exercises of stock options, was $420.5 million and $92.1 million for the nine months ended September 30, 2026 and 2025, respectively.

At September 30, 2026 and December 31, 2025, all regulatory capital requirements were met, resulting in the Company and the Bank being categorized as well capitalized. Management is not aware of any conditions or events that would change this categorization.

Material Cash Requirements

Commitments. As a financial services provider, the Company routinely is a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. Although these contractual obligations represent the Company’s future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans originated. At September 30, 2026 and December 31, 2025, the Company had outstanding commitments to originate loans and extend credit of $805.5 million and $481.7 million, respectively.

It is anticipated that the Company will have sufficient funds available to meet its current lending commitments. Certificates of deposit that are scheduled to mature in 2026 totaled $333.2 million. Management expects that a substantial portion of the maturing time deposits will be renewed. However, if a substantial portion of these deposits are not retained, the Company may utilize FHLBNY advances, FRBNY advances, unsecured credit lines with correspondent banks, or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

Contractual Obligations. In the ordinary course of its operations, the Company enters into certain contractual obligations. Such obligations include data processing services, operating leases for premises and equipment, agreements with respect to borrowed funds and deposit liabilities. There have been no material changes in the Company’s material cash requirements under its contractual obligations as discussed in its most recent annual report on Form 10-K.

Dividend on Preferred Stock. Pursuant to the terms of its Preferred Stock, the Company is required to pay a quarterly dividend on its Preferred Stock, beginning during the quarter ended June 30, 2024. The floor dividend rate is 0.50% and the ceiling dividend rate is 2.00%, based on achievement of certain qualified lending targets. For any quarterly dividends through June 15, 2027, the Company is required to pay quarterly dividends on the Preferred Stock at a rate of 0.50%. In June 2024, the Company began paying dividends on its Preferred Stock, which dividends were $0.8 million for both the nine months ended September 30, 2026 and 2025.

Other Material Cash Requirements. In addition to contractual obligations, the Company’s material cash requirements also includes compensation and benefits expenses for its employees, which were $28.2 million for the nine months ended September 30, 2026. The Company also has material cash requirements for occupancy and equipment expenses, excluding depreciation and amortization of $1.5 million, related to rental expenses, general maintenance and cleaning supplies, guard services, software licenses and other miscellaneous expenses, which were $9.9 million for the nine months ended September 30, 2026.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The information required by this item is included in Part I, Item 2 of this report under “Management of Market Risk”.

Item 4. Controls and Procedures.

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended) as of September 30, 2026. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Registrant’s disclosure controls and procedures were effective.

During the three months ended September 30, 2026, there were no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

The Company is not involved in any pending legal proceedings as a plaintiff or a defendant other than routine legal proceeding occurring in the ordinary course of business. At September 30, 2026, the Company was not involved in any legal proceedings the outcome of which management believes would be material to its financial condition or results of operations.

Item 1A. Risk Factors.

In addition to the other information set forth in this Quarterly Report, you should carefully consider the risk factors and other cautionary statements described under the heading “Item 1A. Risk Factors” included in our 2025 Form 10-K and the risk factors and other cautionary statements contained in our other SEC filings, which could materially affect our businesses, financial condition or future results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results. There have been no material changes in our Risk Factors from those disclosed in Item 1A of our 2025 Form 10-K or our other SEC filings.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None

Item 3. Defaults Upon Senior Securities.

None

Item 4. Mine Safety Disclosures.

None

Item 5. Other Information.

During the three months ended September 30, 2026, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement.

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Item 6. Exhibits

Exhibit Number		Description
3.1		Articles of Incorporation of Ponce Financial Group, Inc. (attached as Exhibit 3.1 to the Registrant’s Form S-1 (File No. 333-258394) filed with the Commission on August 3, 2021).
3.2		Bylaws of Ponce Financial Group, Inc. (attached as Exhibit 3.2 to the Registrant’s Form S-1 (File No. 333-258394) filed with the Commission on August 3, 2021).
3.3		Articles Supplementary to the Charter of Ponce Financial Group, Inc. (attached as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 001-41255) filed with the Commission on June 9, 2022).
31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Ponce Financial Group, Inc. (Registrant)
Date: November 4, 2026		By:	/s/ Carlos P. Naudon
			Carlos P. Naudon
			President and Chief Executive Officer
Date: November 4, 2026		By:	/s/ Sergio J. Vaccaro
			Sergio J. Vaccaro
			Executive Vice President and Chief Financial Officer

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