The following discussion and analysis of our financial condition and results of operations at June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and 2025 should be read in conjunction with our audited consolidated financial statements and the accompanying notes in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion and analysis contains forward-looking statements that are subject to certain risks and uncertainties and are based on certain assumptions that we believe are reasonable but may prove to be inaccurate. Certain risks, uncertainties and other factors, including those set forth under “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in this Quarterly Report on Form 10-Q, may cause actual results to differ materially from those projected results discussed in the forward-looking statements appearing in this discussion and analysis. We assume no obligation to update any of these forward-looking statements. Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “attribute,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook,” “aim,” “would,” “annualized” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements include, but are not limited to: ● statements of our goals, intentions and expectations; ● statements regarding our business plans, prospects, growth and operating strategies; ● statements regarding the quality of our loan and investment portfolios; and ● estimates of our risks and future costs and benefits. ​ These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. 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: ● inflation, tariffs and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; ● general economic conditions, either nationally or in our market areas, that are worse than expected; ● changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; ● our ability to access cost-effective funding; ● events involving the failure of financial institutions may adversely affect our business, and the market price of our common stock; ● fluctuations in real estate values and both residential and commercial real estate market conditions; ● demand for loans and deposits in our market area; ● risks associated with loan participations; ● our ability to implement and change our business strategies; ● competition among depository and other financial institutions; ● the rate of delinquencies, amounts of non-performing loans and loans that are charged-off; ● adverse changes in the securities markets; ● fluctuations in the stock market may have a significant adverse effect on transaction fees, client activity and client investment portfolio gains and losses related to our trust and wealth management business; 28 Table of Contents ● changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; ● our ability to enter new markets successfully and capitalize on growth opportunities; ● our ability to capitalize on strategic opportunities; ● our ability to successfully introduce new products and services; ● our ability to prevent or mitigate fraudulent activity; ● our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames, and any goodwill charges related thereto; ● our ability to retain our existing customers; ● changes in consumer spending, borrowing and savings habits; ● 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; ● changes in our organization, compensation and benefit plans; ● changes in the quality or composition of our loan or investment portfolios; ● a breach in security of our information systems, including the occurrence of a cyber incident or a deficiency in cyber security; ● political instability or civil unrest; ● acts of war or terrorism or pandemics; ● competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional providers, including retail businesses and technology companies; ● the failure to attract and retain skilled people; ● any future FDIC insurance premium increases, or special assessment may adversely affect our earnings; ● the fiscal and monetary policies of the federal government and its agencies; and ● other economic, competitive, governmental, regulatory and operational factors affecting our operations, pricing, products and services described elsewhere in this Quarterly Report on Form 10-Q. ​ The foregoing factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in this Quarterly Report on Form 10-Q. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for us to predict those events or how they may affect us. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Overview We are a bank holding company headquartered in Middletown, New York and registered under the Bank Holding Company Act. Through our wholly owned subsidiaries, Orange Bank & Trust Company and Orange Investment Advisors, formerly known as Hudson Valley Investment Advisors, Inc., we offer full-service commercial and consumer banking products and services and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments and affluent individuals in the Lower Hudson Valley region, the New York metropolitan area and nearby markets in Connecticut and New Jersey. By combining the high-touch service and relationship-based focus of a community bank with the extensive suite of financial products and services offered by our larger competitors, we believe we can continue to capitalize on the growth opportunities available in our market areas. We also offer a variety of deposit accounts to businesses and consumers, including checking accounts and a full line of municipal banking accounts through our business banking platform. These activities, together with our 16 offices and one loan production office, continue to produce a stable source of low-cost core deposits and a diverse loan portfolio with attractive risk-adjusted yields. We also offer private banking services through Orange Bank & Trust Private Banking, a division of Orange Bank & Trust Company, and provide trust and wealth management services through Orange Bank & Trust Company’s trust services department and OIA, which combined had $1.7 billion in assets under management at June 30, 2026. As of June 30, 2026, our assets, loans, deposits and stockholders’ equity totaled $2.8 billion, $1.9 billion, $2.4 billion and $306.6 million, respectively. 29 Table of Contents At June 30, 2026, we operate from our main office and 15 branch offices. We own our main office in Middletown, New York, and three branch offices which are located in Chester, Newburgh and in Montgomery, New York. We lease twelve branch offices located in Middletown, Goshen, Cortlandt Manor, White Plains, Mamaroneck, New City, Mt. Pleasant, Mount Vernon, Nanuet, Yonkers, and two Bronx locations, all in New York. The branches are leased under agreements that may be renewed for various periods. In addition, OIA operates from leased offices located in Goshen, New York. At June 30, 2026 and December 31, 2025, the total net book value of our leasehold improvements, furniture, fixtures and equipment was approximately $15.5 million. Key Factors Affecting Our Business Net Interest Income. Net interest income is the most significant contributor to our net income and is the difference between the interest and fees earned on interest-earning assets and the interest expense incurred in connection with interest-bearing liabilities. Net interest income is primarily a function of the average balances and yields/rates of these interest-earning assets and interest-bearing liabilities. These factors are influenced by internal considerations such as product mix and risk appetite as well as external influences such as economic conditions, competition for loans and deposits and market interest rates. The cost of our deposits and short-term borrowings is primarily based on short-term interest rates, which are largely driven by the Board of Governors of the Federal Reserve System’s (the “FRB”) actions and market competition. The yields generated by our loans and securities are typically affected by short-term and long-term interest rates, which are driven by market competition and market rates often impacted by the FRB’s actions. The level of net interest income is influenced by movements in such interest rates and the pace at which such movements occur. Considering the impact of the FRB’s rate policy during 2025 and current 2026 economic conditions, it is possible that interest rates may be revised during the current year. Although our asset sensitivity remains relatively neutral, this movement could have a significant impact on our net interest income. Noninterest Income. Noninterest income is also a contributor to our net income. Noninterest income consists primarily of our investment advisory income, trust income generated by OIA and our trust department, as well as income generated by our BOLI investment earnings. In addition, noninterest income is also impacted by net gains (losses) on the sale of investment securities and loans, service charges on deposit accounts, and other fee income consisting primarily of debit card fee income, checkbook fees and rebates and safe deposit box rental income. Noninterest Expense. Noninterest expense includes salaries, employee benefits, occupancy, professional fees, directors’ fees and expenses, computer software expense, federal deposit insurance assessment, advertising expenses, advisor expenses related to trust income and other expenses. In evaluating our level of noninterest expense, we closely monitor our efficiency ratio. The efficiency ratio is calculated by dividing noninterest expense by net interest income plus noninterest income. We continue to seek to identify ways to streamline our business and operate more efficiently. Credit Quality. We have well established loan policies and underwriting practices that have resulted in relatively low levels of loan charge-offs and nonperforming assets in recent periods. We strive to originate quality loans that will maintain the credit quality of our loan portfolio. However, credit trends in the markets in which we operate are largely impacted by economic conditions beyond our control and can adversely impact our financial condition. Competition. The industry and businesses in which we operate are highly competitive. We may see increased competition in different areas including interest rates, underwriting standards and product offerings and structure. While we seek to maintain an appropriate return on our investments, we anticipate that we will experience continued pressure on our net interest margin as we operate in this competitive environment. Economic Conditions. Our business and financial performance are affected by economic conditions generally in the United States and more directly in the market of the Lower Hudson Valley region, the New York metropolitan area and nearby markets in Connecticut and New Jersey where we primarily operate. The significant economic factors that are most relevant and impactful to our business and our financial performance include, but are not limited to, real estate values, interest rates and unemployment rates. Regulatory Trends. We operate in a highly regulated environment and nearly all of our operations are subject to extensive regulation and supervision. Bank or securities regulators, Congress, the State of New York, the FRB and the New York State Department of 30 Table of Contents Financial Services (the “NYSDFS”) may revise the laws and regulations applicable to us, may impose new laws and regulations, increase the level of scrutiny of our business in the supervisory process, and pursue additional enforcement actions against financial institutions. Future legislative and regulatory changes such as these may increase our costs and have an adverse effect on our business, financial condition and results of operations. The legislative and regulatory trends that will affect us in the future are impossible to predict with any certainty. Critical Accounting Estimates Critical 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 that could have a material impact on the carrying value of certain assets or on income under different assumptions or conditions. These critical estimates, policies and their application are periodically reviewed with the Audit Committee and the board of directors. Management believes that the most critical accounting estimates, which involve the most complex or subjective decisions or assessments, are as follows: Allowance for Credit Losses. Management believes that the determination of the allowance for credit losses involves a high degree of complexity and requires management to make difficult and subjective judgments, which often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could materially impact the results of operations for Orange County Bancorp. The methodology, assumptions, and governance of this CECL model have been codified in a policy document that was most recently reviewed and approved by the Company’s Audit & Risk Committee during the fourth quarter of 2025. While there were no fundamental changes to the CECL model during the quarter, management evaluated certain probability of default assumptions as well as the loss driver analysis. This evaluation resulted in adjustment of certain assumptions but were not considered significant changes to the model. Accordingly, management believes there were no significant changes to the critical accounting estimates during the three and six months ended June 30, 2026, and as disclosed in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 16, 2026. A summary of our accounting policies, including the Allowance for Credit Losses, is included in the Company’s Annual Report on Form 10-K. Discussion and Analysis of Financial Condition Summary Financial Condition. The following table sets forth a summary of the material categories of our balance sheet at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ Change ​ ​ June 30, ​ December 31, ​ ​ ​ ​ 2026 ​ 2025 ​ Amount ​ ​ ​ Percent ​ ​ ​ ​ ​ (Dollars in thousands) Assets $ 2,800,371 ​ $ 2,659,377 ​ $ 140,994 5.3 % Cash and due from banks 334,925 ​ 204,232 ​ 130,693 64.0 % Loans, net 1,883,923 ​ 1,921,949 ​ (38,026) (2.0) % Loans held-for-sale ​ 63,594 ​ ​ — ​ ​ 63,594 100.0 % Investment securities, available for sale 395,906 ​ 419,406 ​ (23,500) (5.6) % Deposits 2,431,191 ​ 2,310,373 ​ 120,818 5.2 % FHLB advances, long term 10,000 ​ 10,000 ​ — — % Subordinated notes, net of issuance costs ​ 24,603 ​ ​ 24,555 ​ ​ 48 ​ 0.2 % Stockholders’ Equity 306,628 ​ 284,364 ​ 22,264 7.8 % ​ Assets. Our total assets were $2.8 billion at June 30, 2026, an increase of $141.0 million, or 5.3%, from December 31, 2025. The increase was primarily driven by increases of $130.7 million in cash and due from banks and $63.6 million in loans held-for-sale, while loans decreased by $38.0 million and investment securities, available for sale, decreased by $23.5 million during the six months ended June 30, 2026. Cash and due from banks. Cash and due from banks increased $130.7 million, or 64.0%, to $334.9 million at June 30, 2026, from $204.2 million at December 31, 2025. The increase was mainly the result of management’s focus on deposit growth during the six months ended June 30, 2026 combined with repayments of loans and paydowns and maturities of securities during the second quarter which led to higher levels of liquidity. 31 Table of Contents ​ Loans. The following table sets forth the composition of our loan portfolio by type of loan at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, ​ ​ At December 31, ​ ​ ​ 2026 ​ ​ 2025 ​ ​ ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ ​ ​ ​ (Dollars in thousands) Commercial and industrial ​ $ 239,463 12.53 % ​ $ 249,633 12.80 % Commercial real estate ​ 1,506,536 78.86 % ​ 1,480,062 75.89 % Commercial real estate construction ​ 99,594 5.22 % ​ 99,262 5.09 % Residential real estate ​ 21,432 1.12 % ​ 65,290 3.35 % Home equity ​ 7,009 0.37 % ​ 22,618 1.16 % Consumer ​ 36,228 1.90 % ​ 33,419 1.71 % Total loans ​ 1,910,262 100.00 % ​ 1,950,284 100.00 % Allowance for credit losses ​ (26,339) ​ ​ ​ (28,335) ​ ​ Total loans, net ​ $ 1,883,923 ​ ​ ​ $ 1,921,949 ​ ​ ​ ​ Net loans decreased $38.0 million, or 2.0% to $1.9 billion at June 30, 2026 from December 31, 2025. The decrease in loans was primarily due to $68.4 million of loans transferred to loans held-for-sale and a decrease of $10.2 million in commercial and industrial loans. Commercial and industrial loans decreased $10.2 million, or 4.1%, to $239.5 million at June 30, 2026 from $249.6 million at December 31, 2025. The rest of the portfolio experienced growth within the commercial real estate loans, residential real estate loans, equity lines and in the consumer loans sector. Commercial real estate loans increased $26.5 million, or 1.8% and remained relatively level near $1.5 billion at June 30, 2026 and December 31, 2025. Excluding the effect of the $63.6 million transfer to loans held-for-sale, residential real estate and home equity loans grew organically by a combined $8.9 million. The Company transferred loans with an aggregate principal balance of $68.4 million from the loan portfolio to loans held-for-sale. At the date of transfer, the loans were recorded as held-for-sale at $63.6 million, net of a valuation allowance of $4.8 million. As of June 30, 2026, the loans held-for-sale portfolio consisted of $44.0 million of residential real estate loans and $19.6 million of home equity loans. Consumer loans increased $2.8 million, or 8.4%, to $36.2 million at June 30, 2026 from $33.4 million at December 31, 2025. The overall diversification within the commercial real estate portfolio continues to provide stability while we remained focused on loan originations to new and existing customers during the six months ended June 30, 2026 as well as our continued commitment to geographic expansion in our market area. During the six months ended June 30, 2026, the trajectory of our loan growth was impacted by unanticipated payoffs aggregating $81.1 million, compared to $28.5 million during the same period last year. Non-performing Assets Management reviews a loan for individual evaluation when it is non-performing or when it is probable at least a portion of the loan will not be collected in accordance with the original terms due to a deterioration in the financial condition of the borrower or the value of the underlying collateral if the loan is collateral dependent. When a loan is determined to be non-performing, the measurement of the loan in the allowance for credit losses is based on the fair value of the collateral for all collateral-dependent loans. Non-accrual loans are loans for which collectability is questionable and, therefore, interest on such loans will no longer be recognized on an accrual basis. All loans that become 90 days or more delinquent are placed on non-accrual status unless the loan is well secured and in the process of collection. When loans are placed on non-accrual status, unpaid accrued interest is fully reversed, and further income is recognized only to the extent received on a cash basis or cost recovery method. When we acquire real estate as a result of foreclosure, the real estate is classified as real estate owned. The real estate owned is recorded at the lower of carrying amount or fair value, less estimated costs to sell. Soon after acquisition, we order a new appraisal to determine the current market value of the property. Any excess of the recorded value of the loan satisfied over the market value of the property is charged against the allowance for credit losses, or, if the existing allowance is inadequate, charged to expense of the current period. After acquisition, all costs incurred in maintaining the property are expensed. Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell. Management will consider a modification of loan terms, such as a reduction of the interest rate to below market terms, capitalizing past due interest or extending the maturity date and possibly a partial forgiveness of the principal amount due, when it is deemed appropriate based on individual borrower conditions. Interest income on restructured loans is accrued after the borrower demonstrates the ability to pay under the restructured 32 Table of Contents terms through a sustained period of repayment performance, which is generally six consecutive months. The following table sets forth information regarding our non-performing assets. Non-performing loans aggregated approximately $22.2 million at June 30, 2026 as compared to $11.1 million at December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, ​ At December 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (Dollars in thousands) Non-accrual loans: ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 2,388 ​ $ 1,577 ​ Commercial real estate ​ 15,618 ​ 8,690 ​ Commercial real estate construction ​ — ​ — ​ Residential real estate ​ — ​ 1 ​ Home equity ​ 833 ​ 844 ​ Consumer ​ — ​ — ​ Total non-accrual loans ​ 18,839 ​ 11,112 ​ Accruing loans 90 days or more past due: ​ ​ ​ ​ ​ Commercial and industrial ​ 150 ​ 18 ​ Commercial real estate ​ 3,171 ​ — ​ Commercial real estate construction ​ — ​ — ​ Residential real estate ​ — ​ — ​ Home equity ​ — ​ — ​ Consumer ​ — ​ — ​ Total accruing loans 90 days or more past due ​ 3,321 ​ 18 ​ Total non-performing loans ​ 22,160 ​ 11,130 ​ Other real estate owned ​ — ​ — ​ Other non-performing assets ​ — ​ — ​ Total non-performing assets ​ $ 22,160 ​ $ 11,130 ​ Ratios: ​ ​ ​ ​ ​ Total non-performing loans to total loans ​ 1.16 % 0.57 % Total non-performing loans to total assets ​ 0.79 % 0.42 % Total non-performing assets to total assets ​ 0.79 % 0.42 % ​ Non-performing loans at June 30, 2026 totaled $22.2 million and consisted of $15.6 million related to commercial real estate loans, $2.4 million associated with commercial and industrial loans, and $833 thousand related to home equity loans. Although there was an increase in the commercial and industrial segment of the portfolio, the level of non-performing loans was still mainly related to the commercial real estate portfolio. The commercial real estate non-performing loans were mainly the result of a $14.2 million commercial real estate participation loan that experienced payment disruption during the six months ended June 30, 2026 due to bankruptcy at the parent company, offset partially by settlement of a previously reported participation loan for an office complex. The settlement reduced non-performing loans by approximately $6.0 million during the second quarter of 2026. Total accruing loans 90 days or more past due represented $3.3 million of loans as of June 30, 2026, compared to $18 thousand at December 31, 2025. The increase in accruing loans 90 days or more past due was related primarily to a commercial real estate participation loan that experienced an administrative delay in the processing of an extension/modification during the six months ended June 30, 2026 due to divorce proceedings, and remains a performing loan and in accrual status at June 30, 2026. Led by the increase in non-accrual loans and loans 90 days past due, non-performing assets increased $11.0 million, or 99.1%, to $22.2 million, or 0.79% of total assets, at June 30, 2026 from $11.1 million, or 0.42% of total assets, at December 31, 2025. Management continues to focus on credit quality and attention to assets with potential concerns. ​ From time to time, as part of our loss mitigation strategy, we may renegotiate loan terms based on the economic and legal reasons related to the borrower’s financial difficulties. There were no loans modified due to financial difficulties during the six months ended June 30, 2026. ​ 33 Table of Contents Classified Assets. Federal regulations provide that loans and other assets of lesser quality should be classified as “substandard”, “doubtful” or “loss” assets. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that we will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard,” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. We designate an asset as “special mention” if the asset has a potential weakness that warrants management’s close attention. ​ The following table summarizes classified assets of all portfolio types at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, ​ At December 31, ​ ​ ​ ​ 2026 ​ 2025 ​ ​ (Dollars in thousands) Classification of Assets: ​ ​ ​ ​ ​ ​ Substandard ​ $ 66,448 ​ $ 73,706 Doubtful ​ — ​ — Loss ​ — ​ — Total Classified Assets ​ $ 66,448 ​ $ 73,706 Special Mention ​ $ 43,054 ​ $ 58,422 ​ On the basis of management’s review of our assets, we have classified $66.4 million of our assets at June 30, 2026 as substandard compared to $73.7 million at December 31, 2025, with the decrease due to a combination of risk ratings resulting from certain trends, including delinquencies within the loan portfolio, and the sale or chargeoff of certain loans. There were no doubtful assets as of June 30, 2026 or December 31, 2025. We designated $43.1 million of our assets at June 30, 2026 as special mention compared to $58.4 million designated as special mention at December 31, 2025. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 (Topic 326), which replaced the incurred loss methodology with CECL for financial instruments measured at amortized cost and other commitments to extend credit. The allowance for credit losses is a valuation allowance for management’s estimate of expected credit losses in the loan portfolio. The process to determine expected credit losses utilizes analytic tools and judgement and is reviewed on a quarterly basis. When management is reasonably certain that a loan balance is not fully collectable, an analysis is completed and a specific reserve may be established or a full or partial charge off could be recorded against the allowance. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance via a quantitative analysis which considers available information from internal and external sources related to past loan loss and prepayment experience and current conditions, as well as the incorporation of reasonable and supportable forecasts. Management evaluates a variety of factors including available published economic information in arriving at its forecast. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. Also included in the allowance for credit losses are qualitative reserves that are expected, but, in management’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. Factors may include changes in lending policies and procedures, size and composition of the portfolio, experience and depth of management and the effect of external factors such as competition, legal and regulatory requirements, among others. The allowance is available for any loan that, in management’s judgment, should be charged off. Although management uses the best information available, the level of the allowance for credit losses remains an estimate, which is subject to significant judgment and short-term change. Various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for credit losses. Such agencies may require the Company to make additional provisions for credit losses based upon information available to them at the time of their examination. Furthermore, the majority of the Bank’s loans are secured by real estate in the State of New York. Accordingly, the collectability of a substantial portion of the carrying value of the Bank’s loan portfolio is susceptible to changes in local market conditions and any adverse economic conditions. Future adjustments to the provision for credit losses and allowance for credit losses may be necessary due to economic, operating, regulatory and other conditions beyond the Company’s control. 34 Table of Contents As presented below, the allowance for credit losses decreased by $2.1 million, or 7.3%, to $26.3 million, or 1.38% of total loans at June 30, 2026, from $28.4 million, or 1.48% of total loans at June 30, 2025. The decrease in the allowance was due primarily to slower loan growth during 2026 combined with lower reserves associated with the composition of loans closed in 2026 and a $633 thousand reduction related to loans transferred to loans held-for-sale during the first six months of 2026. The six months ended June 30, 2026 also included net chargeoffs of approximately $524 thousand. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or for the Six Months Ended ​ ​ ​ June 30, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (Dollars in thousands) Balance at beginning of year ​ $ 28,335 ​ $ 26,077 ​ Charge-offs: ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ 44 ​ 197 Commercial real estate ​ 535 ​ — Commercial real estate construction ​ — ​ — Residential real estate ​ — ​ — Home equity ​ — ​ 3 Consumer ​ 1 ​ — Total charge-offs ​ 580 ​ 200 Recoveries: ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ 31 ​ 21 Commercial real estate ​ — ​ — Commercial real estate construction ​ — ​ — Residential real estate ​ — ​ — Home equity ​ — ​ — Consumer ​ 25 ​ 31 Total recoveries ​ 56 ​ 52 Net charge-offs ​ 524 ​ 148 Provision (credit) for credit losses ​ (1,472) ​ 2,479 Balance at end of period ​ $ 26,339 ​ $ 28,408 ​ Ratios: ​ ​ ​ ​ ​ ​ ​ Net charge-offs (recoveries) to average loans outstanding ​ 0.03 % — % Allowance for credit losses to non-performing loans at end of period ​ 118.86 % 242.51 % Allowance for credit losses to total loans at end of period ​ 1.38 % 1.48 % ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2026, the Company recognized net charge-offs of $524 thousand, or 0.03%. Commercial real estate loans reflected a net charge-offs of $535 thousand associated with the settlement and payoff of certain loans. For the period, the commercial and industrial segment of the loan portfolio recognized a net charge-off amount of $13 thousand, or a net charge-off ratio of 0.03%. The consumer loan portfolio experienced net recoveries during the six month period of approximately $24 thousand related to collection of certain loans. For the six months ended June 30, 2026 and 2025, respectively, no other category of loans had a net charge-off ratio which exceeded 0.01% either individually, or in the aggregate. Investment Securities The following table sets forth the estimated fair value of our available-for-sale securities portfolio at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, 2026 ​ At December 31, 2025 ​ ​ ​ ​ Amortized ​ ​ ​ Estimated ​ Amortized ​ ​ ​ Estimated ​ ​ Cost ​ Fair Value ​ Cost ​ Fair Value ​ (Dollars in thousands) Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government agencies and treasuries ​ $ 63,915 ​ $ 57,513 ​ $ 67,611 ​ $ 61,570 Mortgage-backed securities ​ 272,379 ​ 234,380 ​ 287,128 ​ 251,825 Corporate securities ​ 23,500 ​ 22,240 ​ 25,001 ​ 23,276 Obligations of states and political subdivisions ​ 91,140 ​ 81,773 ​ 92,357 ​ 82,735 Total ​ $ 450,934 ​ $ 395,906 ​ $ 472,097 ​ $ 419,406 ​ Available for sale securities decreased $23.5 million, or 5.6%, to $395.9 million at June 30, 2026 primarily due to investments repayments and maturities combined with continued decline for all investment categories due to normal amortization and cash flow during the six month period ended June 30, 2026. We did not have held-to-maturity securities at June 30, 2026 or December 31, 2025. 35 Table of Contents Deposits The following table sets forth our total deposit account balances, by account type, at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, 2026 ​ ​ At December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Amount ​ Percent ​ Rate ​ ​ Amount ​ Percent ​ Rate ​ ​ (Dollars in thousands) Noninterest-bearing demand deposits ​ $ 793,908 32.66 % — % ​ $ 725,656 31.41 % — % Interest bearing demand deposits ​ 490,746 20.19 % 0.38 % ​ 419,604 18.16 % 0.72 % Money market deposits ​ 255,135 10.49 % 1.34 % ​ 646,688 27.99 % 1.86 % Savings deposits ​ 855,385 35.18 % 1.93 % ​ 359,415 15.56 % 1.45 % Certificates of deposit ​ 36,017 1.48 % 1.88 % ​ 159,010 6.88 % 3.46 % Total ​ $ 2,431,191 100.00 % 0.92 % ​ $ 2,310,373 100.00 % 1.12 % ​ Total deposits increased $120.8 million, or 5.2%, to $2.4 billion at June 30, 2026 from $2.3 billion at December 31, 2025 driven by continued deposit growth focused on commercial transaction accounts during the first six months of 2026. This growth allows for continued stability and strength of liquidity levels for the Bank. Non-interest-bearing demand deposits increased $68.3 million due to normal business activity and continued focus on transactional accounts during the first six months of 2026. Interest bearing demand deposits experienced a $71.1 million, or 17.0%, increase while money market deposits decreased $391.6 million, and savings deposits increased by $496.0 million during the first six months of 2026 primarily related to our continued strategic focus on business account activity and a shift in certain customer accounts from money market accounts to savings accounts during the first six month period in 2026. At June 30, 2026, our core deposits (which includes all deposits except for certificates of deposit) totaled $2.4 billion, or 98.5% of our total deposits. Certificates of deposit decreased by $123.0 million, or 77.3%, mainly from non-renewals of brokered deposits during the six months ended June 30, 2026. We did not have any brokered deposits (excluding reciprocal deposits obtained through the Certificate Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) networks) at June 30, 2026. We had approximately $125.0 million of brokered deposits (excluding reciprocal deposits obtained through the Certificate Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) networks) at December 31, 2025. This decrease represents a continued strategic initiative to reduce short term brokered deposits as a result of increased core deposits and allow for replacement of maturing brokered deposits with transactional customer deposits with lower interest expense. Our reciprocal deposits obtained through the CDARS and ICS networks totaled $144.5 million at June 30, 2026 and the CDARS and ICS deposits totaled $101.8 million at December 31, 2025. Uninsured deposits, net of fully collateralized municipal relationships, remained stable and represent approximately 52% of total deposits as of June 30, 2026 and 46% of total deposits as of December 31, 2025. Borrowings Our borrowings consist of both short-term and long-term borrowings and provide us with one of our sources of funding. Maintaining available borrowing capacity provides us with a contingent source of liquidity. Total borrowings from the Federal Home Loan Bank of New York were $10.0 million at June 30, 2026 and December 31, 2025 as deposit growth exceeded loan growth during the period. This level balance represents the continued focus by management to reduce borrowings and the related interest expense by using lower-cost deposits for funding. We have the unused capacity to borrow an additional $597.0 million from the Federal Home Loan Bank of New York as of June 30, 2026. In September 2025, we issued $25.0 million in aggregate principal amount of fixed to floating subordinated notes (the “2025 Notes”) to certain institutional investors. The 2025 Notes are non-callable for five years, have a stated maturity of September 30, 2035, and bear interest at a fixed rate of 6.50% per year until September 30, 2030. From September 30, 2030 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month SOFR plus 320.5 basis points, payable quarterly in arrears. A portion of these notes was used to redeem the September 2020 subordinated notes. Stockholders’ Equity Stockholders’ equity increased $22.3 million, or 7.8%, to $306.6 million at June 30, 2026 from $284.4 million at December 31, 2025. The increase was due to the combination of $24.9 million in net income, a $3.6 million increase in surplus and a decrease in unrealized gains of approximately $1.4 million on the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss) (“AOCI”), net of taxes during the first six months of 2026, offset by dividends paid of $4.8 million during the six months ended June 30, 2026. The increase of $3.6 million in surplus was primarily due to a liability-to-equity reclassification of equity awards in the amount of $2.3 million during the six months ended June 30, 2026. ​ 36 Table of Contents Average Balance Sheets and Related Yields and Rates The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the three and six month periods ended June 30, 2026 and 2025. No tax equivalent yield adjustments have been made, as the effects would be immaterial. The average balances are daily averages for loans, as presented. Interest income on loans includes the effects of discount accretion and net deferred loan origination costs accounted for as yield adjustments. Average deferred loan fees totaled $4.7 million and $4.9 million for the three months ended June 30, 2026 and June 30, 2025, respectively. Average deferred loan fees totaled $4.7 million and $4.9 million for the six months ended June 30, 2026 and 2025, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 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) ​ $ 1,969,467 ​ $ 29,625 6.03 % ​ $ 1,879,758 ​ $ 28,103 6.00 % Investment securities available for sale ​ 403,523 ​ 2,875 2.86 % ​ 432,657 ​ 3,083 2.86 % Cash and due from banks and other ​ 191,027 ​ 1,979 4.16 % ​ 167,987 ​ 1,829 4.37 % Restricted stock ​ 6,179 ​ 71 4.62 % ​ 5,773 ​ 209 14.52 % Total interest-earning assets ​ 2,570,196 ​ 34,550 5.39 % ​ 2,486,175 ​ 33,224 5.36 % Noninterest-earning assets ​ 119,178 ​ ​ ​ ​ ​ ​ 104,019 ​ ​ ​ ​ Total assets ​ $ 2,689,374 ​ ​ ​ ​ ​ ​ $ 2,590,194 ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing demand deposits ​ $ 442,309 ​ $ 454 0.41 % ​ $ 397,476 ​ $ 489 0.49 % Money market deposits ​ 402,356 ​ 1,415 1.41 % ​ 702,607 ​ 3,721 2.12 % Savings deposits ​ 694,687 ​ 3,439 1.99 % ​ 301,586 ​ 1,046 1.39 % Certificates of deposit ​ 44,518 ​ 256 2.31 % ​ 221,363 ​ 2,222 4.03 % Total interest-bearing deposits ​ 1,583,870 ​ 5,564 1.41 % ​ 1,623,032 ​ 7,478 1.85 % FHLB Advances and other borrowings ​ 13,606 ​ 134 3.95 % ​ 34,341 ​ 375 4.38 % Subordinated notes ​ 24,587 ​ 430 7.01 % ​ 19,615 ​ 231 4.72 % Total interest-bearing liabilities ​ 1,622,063 ​ 6,128 1.52 % ​ 1,676,988 ​ 8,084 1.93 % Noninterest-bearing demand deposits ​ 740,345 ​ ​ ​ ​ ​ ​ 670,150 ​ ​ ​ ​ Other noninterest-bearing liabilities ​ 29,423 ​ ​ ​ ​ ​ ​ 27,436 ​ ​ ​ ​ Total liabilities ​ 2,391,831 ​ ​ ​ ​ ​ ​ 2,374,574 ​ ​ ​ ​ Total stockholders’ equity ​ 297,543 ​ ​ ​ ​ ​ ​ 215,620 ​ ​ ​ ​ Total liabilities and stockholders’ equity ​ $ 2,689,374 ​ ​ ​ ​ ​ ​ $ 2,590,194 ​ ​ ​ ​ Net interest income ​ ​ ​ ​ $ 28,422 ​ ​ ​ ​ ​ $ 25,140 ​ ​ Net interest rate spread (3) ​ ​ ​ ​ ​ ​ 3.87 % ​ ​ ​ ​ 3.43 % Net interest-earning assets (4) ​ $ 948,133 ​ ​ ​ ​ ​ $ 809,187 ​ ​ ​ ​ Net interest margin (5) ​ ​ ​ ​ ​ ​ 4.44 % ​ ​ ​ ​ 4.06 % Average interest-earning assets to interest-bearing liabilities ​ ​ ​ ​ 158.5 % ​ ​ ​ ​ ​ ​ 148.3 % ​ (1) Annualized. (2) Includes loans held-for-sale. (3) 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. (4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (5) Net interest margin represents net interest income divided by average total interest-earning assets. ​ ​ ​ 37 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended June 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) ​ $ 1,962,496 ​ $ 59,415 6.11 % ​ $ 1,855,056 ​ $ 55,417 6.02 % Investment securities available for sale ​ 410,313 ​ 5,766 2.83 % ​ 437,191 ​ 6,205 2.86 % Cash and due from banks and other ​ 190,767 ​ 3,623 3.83 % ​ 157,381 ​ 3,182 4.08 % Restricted stock ​ 6,049 ​ 165 5.50 % ​ 6,871 ​ 327 9.60 % Total interest-earning assets ​ 2,569,625 ​ 68,969 5.41 % ​ 2,456,499 ​ 65,131 5.35 % Noninterest-earning assets ​ 115,208 ​ ​ ​ ​ ​ ​ 102,995 ​ ​ ​ ​ Total assets ​ $ 2,684,833 ​ ​ ​ ​ ​ ​ $ 2,559,494 ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing demand deposits ​ $ 458,710 ​ $ 1,231 0.54 % ​ $ 377,378 ​ $ 891 0.48 % Money market deposits ​ 448,729 ​ 3,424 1.54 % ​ 694,263 ​ 7,356 2.14 % Savings deposits ​ 615,591 ​ 5,933 1.94 % ​ 285,393 ​ 1,903 1.34 % Certificates of deposit ​ 66,226 ​ 966 2.94 % ​ 222,173 ​ 4,446 4.04 % Total interest-bearing deposits ​ 1,589,256 ​ 11,554 1.47 % ​ 1,579,207 ​ 14,596 1.86 % FHLB Advances and other borrowings ​ 11,813 ​ 232 3.96 % ​ 59,536 ​ 1,306 4.42 % Subordinated notes ​ 24,576 ​ 860 7.06 % ​ 19,606 ​ 461 4.74 % Total interest-bearing liabilities ​ 1,625,645 ​ 12,646 1.57 % ​ 1,658,349 ​ 16,363 1.99 % Noninterest-bearing demand deposits ​ 734,158 ​ ​ ​ ​ ​ ​ 668,864 ​ ​ ​ ​ Other noninterest-bearing liabilities ​ 31,108 ​ ​ ​ ​ ​ ​ 28,665 ​ ​ ​ ​ Total liabilities ​ 2,390,911 ​ ​ ​ ​ ​ ​ 2,355,878 ​ ​ ​ ​ Total stockholders’ equity ​ 293,922 ​ ​ ​ ​ ​ ​ 203,616 ​ ​ ​ ​ Total liabilities and stockholders’ equity ​ $ 2,684,833 ​ ​ ​ ​ ​ ​ $ 2,559,494 ​ ​ ​ ​ Net interest income ​ ​ ​ ​ $ 56,323 ​ ​ ​ ​ ​ $ 48,768 ​ ​ Net interest rate spread (3) ​ ​ ​ ​ ​ ​ 3.84 % ​ ​ ​ ​ 3.36 % Net interest-earning assets (4) ​ $ 943,980 ​ ​ ​ ​ ​ $ 798,150 ​ ​ ​ ​ Net interest margin (5) ​ ​ ​ ​ ​ ​ 4.42 % ​ ​ ​ ​ 4.00 % Average interest-earning assets to interest-bearing liabilities ​ ​ ​ ​ ​ 158.1 % ​ ​ ​ ​ ​ ​ 148.1 % (1) Annualized. (2) Includes loans held-for-sale. (3) 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. (4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (5) Net interest margin represents net interest income divided by average total interest-earning assets. ​ ​ 38 Table of Contents Rate/Volume Analysis The following table presents the dollar amount of changes in interest income and interest expense for major components of interest earning assets and interest-bearing liabilities for the periods indicated. The table distinguishes between: (1) changes attributable to volume (changes in volume multiplied by the prior period’s rate); (2) changes attributable to rate (change in rate multiplied by the prior year’s volume) and (3) total increase (decrease) (the sum of the previous columns). Changes attributable to both volume and rate are allocated ratably between the volume and rate categories. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2026 vs. 2025 ​ 2026 vs. 2025 ​ ​ ​ ​ Total ​ ​ ​ Total ​ ​ Increase (Decrease) Due to ​ Increase ​ Increase (Decrease) Due to ​ Increase ​ ​ ​ ​ Volume ​ ​ ​ Rate ​ ​ ​ (Decrease) ​ ​ ​ Volume ​ ​ ​ Rate ​ ​ ​ (Decrease) ​ (In thousands) Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans ​ $ 1,355 ​ $ 167 ​ $ 1,522 ​ $ 3,329 ​ $ 669 ​ $ 3,998 Investment securities available for sale ​ (209) ​ 1 ​ (208) ​ (377) ​ (62) ​ (439) Cash and due from banks ​ 239 ​ (89) ​ 150 ​ 634 ​ (193) ​ 441 Other ​ 5 ​ (143) ​ (138) ​ (22) ​ (140) ​ (162) Total interest-earning assets ​ 1,390 ​ (64) ​ 1,326 ​ 3,564 ​ 274 ​ 3,838 Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing demand deposits ​ 45 ​ (80) ​ (35) ​ 219 ​ 121 ​ 340 Money market deposits ​ (1,056) ​ (1,250) ​ (2,306) ​ (1,840) ​ (2,092) ​ (3,932) Savings deposits ​ 1,946 ​ 447 ​ 2,393 ​ 3,182 ​ 848 ​ 4,030 Certificates of deposit ​ (1,019) ​ (947) ​ (1,966) ​ (2,265) ​ (1,215) ​ (3,480) Total interest-bearing deposits ​ (84) ​ (1,830) ​ (1,914) ​ (704) ​ (2,338) ​ (3,042) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal Home Loan Bank advances ​ (205) ​ (36) ​ (241) ​ (937) ​ (137) ​ (1,074) Subordinated notes ​ 87 ​ 112 ​ 199 ​ 175 ​ 224 ​ 399 Total interest-bearing liabilities ​ (202) ​ (1,754) ​ (1,956) ​ (1,466) ​ (2,251) ​ (3,717) Change in net interest income ​ $ 1,592 ​ $ 1,690 ​ $ 3,282 ​ $ 5,030 ​ $ 2,525 ​ $ 7,555 ​ Results of Operations for the Three and Six Months Ended June 30, 2026 and 2025 Summary Income Statements. ​ The following table sets forth the income summary for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ June 30, ​ ​ June 30, ​ ​ ​ ​ ​ ​ ​ ​ Change ​ ​ ​ ​ ​ ​ ​ ​ Change ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ (Dollars in thousands) ​ Interest income $ 34,550 ​ $ 33,224 ​ $ 1,326 4.0 % ​ $ 68,969 ​ $ 65,131 ​ $ 3,838 5.9 % Interest expense 6,128 ​ 8,084 ​ (1,956) (24.2) % ​ 12,646 ​ 16,363 ​ (3,717) (22.7) % Net interest income 28,422 ​ 25,140 ​ 3,282 13.1 % ​ 56,323 ​ 48,768 ​ 7,555 15.5 % Provision (credit) for credit losses (1,014) ​ 2,113 ​ (3,127) (148.0) % ​ (1,450) ​ 2,315 ​ (3,765) (162.6) % Noninterest income (607) ​ 7,316 ​ (7,923) (108.3) % ​ 3,570 ​ 11,672 ​ (8,102) (69.4) % Noninterest expense 17,269 ​ 16,754 ​ 515 3.1 % ​ 35,193 ​ 33,248 ​ 1,945 5.8 % Provision for income taxes (2,099) ​ 3,128 ​ (5,227) (167.1) % ​ 1,207 ​ 5,712 ​ (4,505) (78.9) % Net income 13,659 ​ 10,461 ​ 3,198 30.6 % ​ 24,943 ​ 19,165 ​ 5,778 30.1 % ​ General. Net income increased $3.2 million, or 30.6%, to $13.7 million for the three months ended June 30, 2026 from $10.5 million for the three months ended June 30, 2025. The increase was driven primarily by an increase of $3.3 million related to net interest income growth, a decrease of $5.2 million in provision for income taxes and a decrease of $3.1 million in provision for credit losses on loans, partially offset by a decrease of $7.9 million in noninterest income and an increase of $515 thousand in noninterest expense in the current period. Net income for the six months ended June 30, 2026 was $24.9 million, as compared to $19.2 million for the same period in 2025. The overall increase was driven by $7.6 million of net interest income growth combined with decreased provision for 39 Table of Contents income taxes of $4.5 million and a decreased provision for credit losses on loans of $3.8 million, partially offset by a decrease in noninterest income of $8.1 million and an increase of $1.9 million in noninterest expense during the first six months of 2026 as compared to the same prior year period. ​ Interest Income. Interest income increased $1.3 million, or 4.0%, to $34.5 million for the three months ended June 30, 2026 from $33.2 million for the three months ended June 30, 2025. This increase was driven by a $84.0 million increase in the balance of average interest-earning assets between the two periods. Within the average balance of interest-earning assets, the average balance of loans grew $89.7 million, or 4.8%, between the three months ended June 30, 2026 and June 30, 2025. During the current period, the average yield of interest-earning assets increased by three basis points from 5.36% for the three months ended June 30, 2025 to 5.39% for the three months ended June 30, 2026 as a result primarily of increased yields and fees associated with loans originated in 2025 and the early part of 2026. ​ Interest income increased $3.8 million, or 5.9%, for the six months ended June 30, 2026 reaching $68.9 million from $65.1 million for the six months ended June 30, 2025. This increase was driven by a $113.1 million increase in the balance of average interest-earning assets between the two periods. Within the average balance of interest-earning assets, the average balance of loans receivable grew $107.4 million, or 5.8%, between the six months ended June 30, 2026 and June 30, 2025. During the period, the average yield of interest-earning assets increased by six basis points from 5.35% for the six months ended June 30, 2025 to 5.41% for the six months ended June 30, 2026 as a result primarily of increased yields and fees associated with loans originated in 2025 and the early part of 2026. ​ Interest income on loans increased by $1.5 million, or 5.4%, to $29.6 million during the three months ended June 30, 2026 from $28.1 million during the three months ended June 30, 2025. The increase in interest income on loans was primarily due to the increase in the average balance of loans combined with higher yields during the current period. The average balance of these loans increased by $89.7 million, or 4.8%, to $2.0 billion for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase in the average balance of loans was due to growth in multi-family, commercial real estate, home equity lines of credit as well as growth in our consumer installment loan portfolio. The average yield on loans increased by three basis points to 6.03% for the three months ended June 30, 2026 from 6.00% for the three months ended June 30, 2025 as a result of disciplined loan pricing during 2025 and the first quarter of 2026. ​ For the six months ended June 30, 2026, interest income on loans, increased by $4.0 million, or 7.2%, reaching $59.4 million as compared to $55.4 million for the six months ended June 30, 2025. The increase in interest income on loans represents the impact of growth in average loan balances of $107.4 million between the six months ended June 30, 2026 and June 30, 2025. The increase in average loans outstanding was due to growth in multi-family, commercial real estate and home equity lines. The average yield on loans increased by nine basis points to 6.11% for the six months ended June 30, 2026 from 6.02% for the six months ended June 30, 2025 as a result of disciplined loan pricing during 2026. ​ Interest income on securities including restricted stock decreased by $346 thousand to $2.9 million during the three months ended June 30, 2026 from $3.3 million during the three months ended June 30, 2025. The decrease in interest income on securities was driven primarily by a decrease in the average balances of securities outstanding during the current period due to investment repayments and certain maturities. The average balance of securities decreased by $28.7 million, or 6.5%, to $409.7 million for the three months ended June 30, 2026 compared to $438.4 million for the three months ended June 30, 2025. The average yield on investment securities decreased by 13 basis points to 2.88% for the three months ended June 30, 2026 from 3.01% for the three months ended June 30, 2025. The decrease in the average yield on investment securities reflected the continued repayments and maturities of higher yielding securities during the three months ended June 30, 2026. ​ For the six months ended June 30, 2026, interest income on securities including restricted stock decreased by $601 thousand to $5.9 million during the period from $6.5 million during the six months ended June 30, 2025. The decrease in interest income on securities was due to a decrease in the average balances of securities during the current period and a decrease in the average rate paid on such investments. The average balance of securities decreased by $27.7 million, or 6.2%, to $416.4 million for the six months ended June 30, 2026 compared to $444.1 million for the six months ended June 30, 2025, due to investment prepayments and certain securities maturities during the six months ended June 30, 2026. The average yield on investment securities decreased by 10 basis points from 2.97% for the six months ended June 30, 2025 to 2.87% for the six months ended June 30, 2026. The decrease in the average yield on securities was related to the repayments and maturities of higher yielding securities during the first half of 2026. ​ 40 Table of Contents Interest Expense. Interest expense decreased $2.0 million, or 24.2%, to $6.1 million for the three months ended June 30, 2026 from $8.1 million for the three months ended June 30, 2025. The decreased interest expense was primarily due to the continued reduction of interest costs associated with lower average balances in deposits and FHLB advances, offset by increased interest cost and higher average balances of subordinated notes. The average rate paid on interest-bearing liabilities decreased 41 basis points to 1.52% during the three months ended June 30, 2026 as compared to 1.93% for the three month period ended June 30, 2025. The average balance of interest-bearing liabilities decreased by $54.9 million, or 3.3%, to $1.6 billion for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. ​ Interest expense decreased $3.7 million, or 22.7%, to $12.7 million for the six months ended June 30, 2026 from $16.4 million for the six months ended June 30, 2025. The decrease in interest expense reflects the lower interest rate environment combined with the continuing effect of increased core deposits, specifically noninterest-bearing deposits on overall deposit expense with lower funding costs during the period. The average rate paid on interest-bearing liabilities decreased 42 basis points to 1.57% during the six months ended June 30, 2026 as compared to 1.99% for the six month period ended June 30, 2025. The average balance of interest-bearing liabilities decreased by $32.7 million, or 2.0%, to $1.6 billion for the six months ended June 30, 2026 as compared to $1.7 billion for the six months ended June 30, 2025. ​ Interest expense on interest-bearing deposits decreased by $1.9 million to $5.6 million for the three months ended June 30, 2026 from $7.5 million for the three months ended June 30, 2025. The decrease in interest expense on interest-bearing deposits was due mainly to a decrease in the average rate on interest-bearing deposits during the current period. The average rate of interest-bearing deposits decreased 44 basis points to 1.41% during the three months ended June 30, 2026 as compared to 1.85% for the three months ended June 30, 2025 as a result of the lower interest rate environment. The average balance of interest-bearing deposits decreased by $39.2 million, or 2.4%, to $1.6 billion for the three months ended June 30, 2026 and remained leveled as compared to the three months ended June 30, 2025 as a result of the decreases in the average balances of certificates of deposit, which included lower levels of brokered deposits at higher rates. ​ Interest expense on interest-bearing deposits decreased by $3.0 million to $11.6 million for the six months ended June 30, 2026 from $14.6 million for the six months ended June 30, 2025. The decrease in interest expense on interest-bearing deposits was due mainly to a decrease in the average rate on interest-bearing deposits during the current period. The average rate of interest-bearing deposits decreased 39 basis points to 1.47% for the six months ended June 30, 2026 as compared to 1.86% for the six months ended June 30, 2025 as a result of the lower interest rate environment. The average balance of interest-bearing deposits increased by $10.1 million, or 0.6%, to $1.6 billion for the six months ended June 30, 2026 and remained leveled as compared to the six months ended June 30, 2025, primarily as a result of the increases in the average balances of interest bearing demand deposits and savings deposit accounts. ​ We also recorded interest expense of $430 thousand during the three months ended June 30, 2026 related to subordinated debt as compared to $231 thousand in interest expense for the three months ended June 30, 2025. The increase was related to the issuance in September 2025 of $25.0 million in outstanding subordinated notes. In addition, we expensed $860 thousand and $461 thousand in interest expense for the six months ended June 30, 2026 and June 30, 2025, respectively. The increased interest costs represent the debt service required as part of the 2025 subordinated notes. ​ The interest expense related to FHLB advances in the second quarter of 2026 decreased $241 thousand to $134 thousand at an average cost of 3.95% as compared to interest expense of $375 thousand at an average cost of 4.38% for the same period in 2025. The decrease in FHLB expense in the second quarter of 2026 was primarily due to a decrease of $20.7 million in the average balance of such advances and a decrease in the average cost paid on FHLB advances. The decrease in average FHLB balance was the direct result of Management being able to replace higher cost FHLB borrowings with lower cost deposits and reduce interest expense during the current period. Although borrowings remain a potential source of strategic funding for the Company, the reduction in borrowings during the quarter reflects the ability of the Company to increase deposits and strategically reduce related interest costs. ​ The interest expense related to FHLB advances for the first six months of 2026 decreased $1.1 million to $232 thousand at an average cost of 3.96% as compared to interest expense of $1.3 million at an average cost of 4.42% for the same period in 2025. The decrease in FHLB expense for the first six months of 2026 was primarily due to a decrease of $47.7 million in the average balance of such advances and a decrease in the average cost paid on FHLB advances. The decrease in average FHLB balance was the direct result of Management being able to replace higher cost FHLB borrowings with lower cost deposits and reduce interest expense during the current period. ​ 41 Table of Contents Net Interest Income. Net interest income increased $3.3 million, or 13.1%, to $28.4 million for the three months ended June 30, 2026 from $25.1 million for the three months ended June 30, 2025 due to the increase in income from average interest earning assets and the reduction of interest costs associated with interest bearing liabilities. Net interest rate spread increased by 44 basis points to 3.87% for the three months ended June 30, 2026 from 3.43% for the three months ended June 30, 2025, reflecting a three basis points increase in the average yield on interest-earning assets combined with a 41 basis points decrease in the average rate paid on interest-bearing liabilities. The net interest margin rose by 38 basis points to 4.44% for the three months ended June 30, 2026 from 4.06% for the three months ended June 30, 2025 due to the lower interest rate environment for short term funding, the impact of managed funding and deposit cost, and increased yields on the lending portfolio during the current period. ​ For the six months ended June 30, 2026, net interest income increased $7.6 million, or 15.5%, to $56.3 million from $48.7 million for the six months ended June 30, 2025 due to an increase in net interest margin combined with increased average interest earning assets for the current period. The net interest margin increased 42 basis points to 4.42% for the six months ended June 30, 2026 from 4.00% for the six months ended June 30, 2025. Net interest rate spread grew by 48 basis points to 3.84% for the six months ended June 30, 2026 from 3.36% for the six months ended June 30, 2025. ​ Provision for Credit Losses. The Company recognized a net recovery of $1.0 million in the provision for credit losses during the three months ended June 30, 2026, compared to a provision of $2.1 million for the three months ended June 30, 2025. The decreased provision for the three months ended June 30, 2026 was primarily a result of slower loan growth combined with lower reserves associated with the composition of loans closed during the second quarter of 2026. The allowance for credit losses to total loans was 1.38% as of June 30, 2026, a decrease of seven basis points, or 4.83%, versus 1.45% as of December 31, 2025. ​ For the six months ended June 30, 2026, the Company recognized a net recovery of $1.5 million in the provision for credit losses as compared to a $2.3 million provision for the six months ended June 30, 2025. The decreased provision for the six months ended June 30, 2026 represented the effect of lower levels of specific reserves associated with certain composition of loans closed during the first half of 2026 as compared to the six months ended June 30, 2025 offset by loan portfolio growth during the current period. ​ Noninterest Income. Noninterest income information is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Change ​ Six Months Ended ​ Change ​ ​ June 30, ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ ​ ​ ​ (Dollars in thousands) ​ Service charges on deposit accounts ​ $ 329 ​ $ 334 ​ $ (5) (1.5) % ​ $ 684 ​ $ 624 ​ $ 60 9.6 % Trust income ​ 1,666 ​ 1,573 ​ 93 5.9 % ​ 3,393 ​ 3,247 ​ 146 4.5 % Investment advisory income ​ 1,552 ​ 1,823 ​ (271) (14.9) % ​ 3,094 ​ 3,589 ​ (495) (13.8) % Investment securities gains (losses) ​ — ​ (727) ​ 727 100.0 % ​ — ​ (727) ​ 727 100.0 % Earnings on bank owned life insurance ​ 195 ​ 234 ​ (39) (16.7) % ​ 387 ​ 493 ​ (106) (21.5) % Proceeds from bank owned life insurance benefit ​ ​ — ​ ​ 2,399 ​ ​ (2,399) ​ (100.0) % ​ ​ — ​ ​ 2,399 ​ ​ (2,399) ​ (100.0) % Gain on sale of assets ​ ​ — ​ ​ 1,236 ​ ​ (1,236) ​ (100.0) % ​ ​ — ​ ​ 1,236 ​ ​ (1,236) ​ (100.0) % Valuation loss on loans held-for-sale ​ ​ (4,761) ​ ​ — ​ ​ (4,761) ​ (100.0) % ​ ​ (4,761) ​ ​ — ​ ​ (4,761) ​ (100.0) % Other ​ 412 ​ 444 ​ (32) (7.2) % ​ 773 ​ 811 ​ (38) (4.7) % Total noninterest income ​ $ (607) ​ $ 7,316 ​ $ (7,923) (108.3) % ​ $ 3,570 ​ $ 11,672 ​ $ (8,102) (69.4) % ​ Noninterest income decreased by $7.9 million, or 108.3%, to a $607 thousand loss for the three months ended June 30, 2026 as compared to $7.3 million for the three months ended June 30, 2025. The decrease of $7.9 million in noninterest income was largely related to a valuation loss of $4.8 million related to loans classified as held-for-sale during the second quarter of 2026 and the recognition of gain associated with the sale of a branch location of $1.2 million coupled with a Bank Owned Life Insurance gain of $2.4 million related to policy proceeds from a death benefit during the prior year period. Our Wealth Management division revenues, which include our Trust and Asset Management businesses also experienced a decrease in income of $178 thousand and represented a 5.2% decrease quarter-over-quarter, to $3.2 million for the second quarter of 2026 as compared to $3.4 million for the second quarter of 2025 as a result of an overall net decrease in assets-under-management. During the same period, assets-under-management decreased to $1.7 billion at June 30, 2026 from $1.8 billion at June 30, 2025. ​ For the six months ended June 30, 2026, noninterest income decreased by $8.1 million, or 69.4%, to $3.6 million as compared to $11.7 million for the six months ended June 30, 2025. Our Wealth Management division revenues decreased and represented a 5.1% decrease to $6.5 million for the six month period ended June 30, 2026 from $6.8 million for the six month period ended June 30, 2025 42 Table of Contents as a result of reduction in assets under management, primarily due to residual effects from last year’s divisional restructuring. The six months ended June 30, 2026 also included the impact associated with a valuation allowance related to loans classified as held-for-sale, and the branch location sale, and the BOLI proceeds, both in the prior year period as described above. ​ Noninterest Expense. Noninterest expense information is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Change ​ Six Months Ended ​ Change ​ ​ June 30, ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Amount ​ ​ ​ Percent ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ (Dollars in thousands) ​ Salaries ​ $ 7,512 ​ $ 6,813 ​ $ 699 ​ 10.3 % ​ $ 14,921 ​ $ 13,718 ​ $ 1,203 8.8 % Employee benefits ​ 3,005 ​ 2,338 ​ 667 28.5 % ​ 6,107 ​ 4,788 ​ 1,319 27.5 % Occupancy expense ​ 1,251 ​ 1,299 ​ (48) (3.7) % ​ 2,587 ​ 2,576 ​ 11 0.4 % Professional fees ​ 1,861 ​ 1,666 ​ 195 11.7 % ​ 3,326 ​ 3,013 ​ 313 10.4 % Directors’ fees and expenses ​ 535 ​ 319 ​ 216 67.7 % ​ 1,157 ​ 625 ​ 532 85.1 % Computer software expense ​ 1,959 ​ 2,117 ​ (158) (7.5) % ​ 3,838 ​ 4,099 ​ (261) (6.4) % FDIC assessment ​ 160 ​ 330 ​ (170) (51.5) % ​ 490 ​ 660 ​ (170) (25.8) % Advertising expenses ​ 496 ​ 481 ​ 15 3.1 % ​ 921 ​ 870 ​ 51 5.9 % Advisor expenses related to trust income ​ 26 ​ 22 ​ 4 18.2 % ​ 50 ​ 44 ​ 6 13.6 % Telephone expenses ​ 274 ​ 203 ​ 71 35.0 % ​ 538 ​ 410 ​ 128 31.2 % Intangible amortization ​ 72 ​ 72 ​ — — % ​ 143 ​ 143 ​ — — % Other ​ 118 ​ 1,094 ​ (976) (89.2) % ​ 1,115 ​ 2,302 ​ (1,187) (51.6) % Total noninterest expense ​ $ 17,269 ​ $ 16,754 ​ $ 515 3.1 % ​ $ 35,193 ​ $ 33,248 ​ $ 1,945 5.8 % ​ Non-interest expense was $17.3 million for the second quarter of 2026, reflecting an increase of approximately $515 thousand, or 3.1%, as compared to $16.8 million for the same period in 2025. The increase in non-interest expense for the current three month period was due primarily to continued investment in overall Company growth, including salaries and benefits, Director’s fees and expenses, professional fees, and advertising expense. Our efficiency ratio increased to 62.1% for the three months ended June 30, 2026, from 51.6% for the same period in 2025. Non-interest expense was $35.2 million for the first half of 2026, reflecting an increase of approximately $1.9 million, or 5.8%, as compared to $33.3 million for the same period in 2025. The increase in non-interest expense for the current six month period was also due to continued investment in overall Company growth, primarily, increases in salaries and benefits, occupancy expense and professional fees, partially offset by a decrease in computer software expense. For the six months ended June 30, 2026, our efficiency ratio was 58.8% as compared to 55.0% for the same period in 2025. Provision for Income Tax. Our provision for income taxes for the three months ended June 30, 2026 reflected a credit of $2.1 million, compared to a provision of $3.1 million for the same period in 2025. The decrease in provision was related to the Company’s reversal of the deferred tax valuation allowance. The reversal was based on the financial strength of the Company and sustained history of profitability which demonstrates the likelihood of realizing the benefits of the deferred tax asset. Our effective tax rate for the three month period ended June 30, 2026 was (18.2%), as compared to 23.0% for the same period in 2025. For the six months ended June 30, 2026, our provision for income taxes was $1.2 million, as compared to $5.7 million for the six months ended June 30, 2025. The decrease was related to the Company’s reversal of the deferred tax valuation allowance during the current six month period. During the six months ended June 30, 2026, the Company reevaluated the realizability of its deferred tax assets based on positive and negative evidence under ASC 740. The Company concluded that it is now more likely than not that a portion of our deferred tax assets related to net operating loss carryforwards will be realized. This conclusion was driven by significant positive evidence, including three and one-half years of profitable operations and updated multi-year financial projections. Our effective tax rate for the six-month period ended June 30, 2026 was 4.6%, as compared to 23.0% for the same period in 2025. ​ Financial Position and Results of Operations of our Wealth Management Business Segment We conduct our business through two business segments: (1) our banking business segment, which involves the delivery of loan and deposit products to our customers through Orange Bank & Trust Company; and (2) our wealth management business segment, which includes asset management and trust services to individuals and institutions through OIA and Orange Bank & Trust Company that provides trust and investment management fee income. 43 Table of Contents The following tables present the statements of income and total assets for our reportable business segments for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ Wealth ​ Total ​ ​ ​ ​ Wealth ​ Total ​ ​ ​ ​ Banking ​ ​ ​ Management ​ ​ ​ Segments ​ ​ ​ Banking ​ ​ ​ Management ​ ​ ​ Segments ​ ​ (Dollars in thousands) Net interest income ​ $ 28,422 ​ $ — ​ $ 28,422 ​ $ 25,140 ​ $ — ​ $ 25,140 Noninterest income ​ (3,825) ​ 3,218 ​ (607) ​ 3,920 ​ 3,396 ​ 7,316 Provision for credit loss ​ ​ 1,014 ​ ​ — ​ ​ 1,014 ​ ​ (2,113) ​ ​ — ​ ​ (2,113) Noninterest expenses ​ (14,974) ​ (2,295) ​ (17,269) ​ (14,414) ​ (2,340) ​ (16,754) Income tax expense ​ 2,311 ​ (212) ​ 2,099 ​ (2,906) ​ (222) ​ (3,128) Net income ​ $ 12,948 ​ $ 711 ​ $ 13,659 ​ $ 9,627 ​ $ 834 ​ $ 10,461 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or for the Six Months Ended June 30, ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ ​ ​ Wealth ​ Total ​ ​ ​ ​ Wealth ​ Total ​ ​ Banking ​ ​ ​ Management ​ ​ ​ Segments ​ ​ ​ Banking ​ ​ ​ Management ​ ​ ​ Segments ​ ​ (Dollars in thousands) Net interest income ​ $ 56,323 ​ $ — ​ $ 56,323 ​ $ 48,768 ​ $ — ​ $ 48,768 Noninterest income ​ (2,917) ​ 6,487 ​ 3,570 ​ 4,836 ​ 6,836 ​ 11,672 Provision for credit loss ​ 1,450 ​ — ​ 1,450 ​ (2,315) ​ — ​ (2,315) Noninterest expenses ​ (30,934) ​ (4,259) ​ (35,193) ​ (28,624) ​ (4,624) ​ (33,248) Income tax expense ​ (695) ​ (512) ​ (1,207) ​ (5,247) ​ (465) ​ (5,712) Net income ​ $ 23,227 ​ $ 1,716 ​ $ 24,943 ​ $ 17,418 ​ $ 1,747 ​ $ 19,165 Assets under management and/or administration ("AUM") (market value) ​ $ — ​ $ 1,673,217 ​ $ 1,673,217 ​ $ — ​ $ 1,827,989 ​ $ 1,827,989 Total assets ​ $ 2,789,722 ​ $ 10,649 ​ $ 2,800,371 ​ $ 2,595,763 ​ $ 10,500 ​ $ 2,606,263 The market value of assets under management and/or administration was $1.7 billion and $1.8 billion at June 30, 2026 and 2025, respectively. This includes assets held at both Orange Bank & Trust Company and OIA at June 30, 2026 and 2025. Our income related to our wealth management business segment, which we record as noninterest income, decreased $178 thousand or 5.2%, to $3.2 million for the three months ended June 30, 2026 compared to $3.4 million for the three months ended June 30, 2025. The decrease was mainly due to the impact of equity markets combined with lower levels of assets under management. Our income related to our wealth management business segment decreased $349 thousand, or 5.1%, to $6.5 million for the six months ended June 30, 2026 compared to $6.8 million for the six months ended June 30, 2025. The decrease was the result of a reduction in AUM, primarily due to residual effects from last year's divisional restructuring. ​ Our expenses related to our wealth management business segment, which we record as noninterest expense, decreased $45 thousand, or 1.9%, to $2.3 million for the three months ended June 30, 2026. The decrease in expenses was primarily due to lower staffing levels during the current period associated with the reorganization of the division during 2025. For the six months ended June 30, 2026, our expenses related to our wealth management business segment decreased $365 thousand, or 7.9%, to $4.3 million for the six months ended June 30, 2026 compared to $4.6 million for the six months ended June 30, 2025. The decrease in expenses was primarily due to lower staffing levels during the current period associated with the reorganization of the division during 2025. Liquidity and Capital Resources Liquidity. Liquidity is the ability to meet current and future financial obligations of a short-term nature. Our primary sources of funds consist of deposit inflows, loan repayments and maturities and sales of securities. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition. Our most liquid assets are cash and due from banks. The levels of these assets are dependent on our operating, financing, lending and investing activities during any given period. At June 30, 2026 and December 31, 2025, cash and due from banks totaled $334.9 million and $204.2 million, respectively. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled 44 Table of Contents $395.9 million at June 30, 2026 and $419.4 million at December 31, 2025. Certificates of deposit due within one year of June 30, 2026 totaled $25.6 million, or 71.1% of total certificates of deposit. At June 30, 2026, the largest concentration of certificates of deposits was in consumer certificates. We participate in IntraFi Network, allowing us to provide access to multi-million-dollar FDIC deposit insurance protection on deposits for customers, businesses and public entities. We can elect to sell or repurchase this funding as reciprocal deposits from other IntraFi Network banks depending on our funding needs. At June 30, 2026, we had a total of $144.5 million of IntraFi Network deposits, all of which were repurchased as reciprocal deposits from the IntraFi Network. Although customer deposits remain our preferred source of funds, maintaining back up sources of liquidity is part of our prudent liquidity risk management practices. We have the ability to borrow from the Federal Home Loan Bank of New York and the Federal Reserve Bank of New York as well as other correspondent banks. At June 30, 2026, we had a total capacity of $679.4 million at the Federal Home Loan Bank of New York, of which $72.4 million was used to collateralize municipal deposits, and $10.0 million was utilized for long-term advances. At June 30, 2026, we also held $61.4 million of collateral at the Federal Reserve Bank of New York which could be utilized to provide additional funding through the discount window and an additional $153.5 million was held as collateral for availability in borrowings through the Federal Reserve Bank’s Borrower-In-Custody (“BIC”) program. We also maintain additional borrowing capacity of $20.0 million of discretionary lines of credit with correspondent banks at June 30, 2026 with no outstanding balance. We also have a borrowing agreement with Atlantic Community Bankers Bank (“ACBB”) to provide short-term borrowings of $5.0 million at June 30, 2026. There were no outstanding borrowings with ACBB at June 30, 2026. Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash from operating activities was $22.8 million for the six months ended June 30, 2026 and net cash used in operating activities was $114 thousand for the six months ended June 30, 2025. Net cash used in investing activities, which consists primarily of disbursements for loan originations and the purchase of securities, offset by principal collections on loans, proceeds from the sale of securities and proceeds from maturing securities and pay downs on securities, was $8.1 million for the six months ended June 30, 2026 and $46.1 million for the six months ended June 30, 2025, respectively. Net cash provided by financing activities, consisting of activity in deposit accounts and borrowings, was $116.0 million for the six months ended June 30, 2026 and net cash provided from financing activities was $71.4 million for the six months ended June 30, 2025. We remain committed to maintaining a strong liquidity position. We monitor and evaluate our liquidity position daily. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit growth and retention, current pricing strategy and regulatory restrictions, we have the ability to retain and increase a substantial portion of maturing time deposits, and we can supplement our funding with borrowings in the event that we allow these deposits to run off at maturity. Capital Resources. We are subject to various regulatory capital requirements administered by the FRB and the NYSDFS. At June 30, 2026 and December 31, 2025, the Bank exceeded all applicable regulatory capital requirements, and were considered “well capitalized” under regulatory guidelines. See Note 10 to the Notes to the Unaudited Consolidated Financial Statements appearing elsewhere in this Quarterly Report on Form 10-Q for actual and required capital amounts and ratios at June 30, 2026 and December 31, 2025. ​ Off-Balance Sheet Arrangements Off-Balance Sheet Arrangements. We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit, which involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. Our exposure to credit loss is represented by the contractual amount of the instruments. We use the same credit policies in making commitments as we do for on-balance sheet instruments. At June 30, 2026, we had $458.4 million in loan commitments outstanding. We also had $20.6 million in standby letters of credit at June 30, 2026. 45 Table of Contents Effect of Inflation and Changing Prices The consolidated financial statements and related financial data included in this Quarterly Report on Form 10-Q have been prepared in accordance with generally accepted accounting principles in the United States of America, which require the measurement of financial position and operating results in terms of historical dollars without considering the change in the relative purchasing power of money over time due to inflation. The primary impact of inflation on our operations is reflected in increased operating costs. Unlike most industrial companies, virtually all the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates generally have a more significant impact on a financial institution’s performance than do general levels of inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services. ​