Amalgamated Financial Corp.

Previous wording

The following is a discussion of our consolidated financial condition as of March 31, 2026, as compared to December 31, 2025, and our results of operations for the three month periods ended March 31, 2026 and March 31, 2025. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. This discussion and analysis is best read in conjunction with our unaudited consolidated financial statements and related notes as well as the financial and statistical data appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”), filed with the Securities and Exchange Commission on March 6, 2026. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate results of operations for any future periods.

Current wording

The following is a discussion of our consolidated financial condition as of June 30, 2026, as compared to December 31, 2025, and our results of operations for the three and six month periods ended June 30, 2026 and June 30, 2025. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. This discussion and analysis is best read in conjunction with our unaudited consolidated financial statements and related notes as well as the financial and statistical data appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”), filed with the Securities and Exchange Commission on March 5, 2026. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate results of operations for any future periods.

Previous wording

The Company was formed on August 25, 2020 to serve as the holding company for the Bank, effective March 1, 2021 when the Company acquired the common stock of the Bank. The Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Although we are no longer majority union-owned, the Amalgamated Clothing Workers of America’s successor, Workers United and its affiliates, affiliates of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 38% of our equity as of March 31, 2026. As of March 31, 2026, our total assets were $9.17 billion, our total loans, net of allowance for credit losses were $4.97 billion, our total deposits were $8.18 billion, and our stockholders' equity was $807.6 million. As of March 31, 2026, our trust business held $37.69 billion in assets under custody and $16.00 billion in assets under management.

Current wording

The Company was formed on August 25, 2020 to serve as the holding company for the Bank, effective March 1, 2021 when the Company acquired the common stock of the Bank. The Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Although we are no longer majority union-owned, the Amalgamated Clothing Workers of America’s successor, Workers United and its affiliates, affiliates of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 38% of our equity as of June 30, 2026. As of June 30, 2026, our total assets were $9.41 billion, our total loans, net of allowance for credit losses were $5.08 billion, our total deposits were $8.46 billion, and our stockholders' equity was $835.0 million. As of June 30, 2026, our trust business held $39.41 billion in assets under custody and $17.24 billion in assets under management.

Previous wording

Net income for the three months ended March 31, 2026 was$25.2 million, or $0.84 per diluted share, compared to$25.0 million, or $0.81 per diluted share, for the three months ended March 31, 2025. The$0.2 million increase was primarily due to an increase in interest and dividend income of $8.6 million, an increase in service charges on deposit accounts of$3.8 million, and an increase in equity investment income of$3.1 million, partially offset by anincrease in provision for credit losses of$12.9 million and an increase in compensation and employee benefits of$2.4 million.

Current wording

Net income for the six months ended June 30, 2026 was$60.0 million, or $1.99 per diluted share, compared to$51.0 million, or $1.65 per diluted share, for the six months ended June 30, 2025. The$9.0 million increase was primarily due to an increase in interest and dividend income of$21.7 million, an increase in service charges on deposit accounts of$6.7 million, an increase in equity investment income of$3.4 million, offset by anincrease in provision for credit losses of$12.4 million, an increase in compensation and employee benefits of$6.3 million, anincrease in technology expense of$2.9 million, anincrease in other expense of$1.0 million, and anincrease of Federal deposits insurance premium expense of$0.2 million.

Previous wording

(2)Includes prepayment penalty income in 1Q2026 and 1Q2025 of $49 and $0 thousand, respectively.

Current wording

(2)Includes prepayment penalty income in 2Q2026 and 2Q2025 of $526 thousand and $200 thousand, respectively.

Previous wording

Net interest spread was 2.63% for the three months ended March 31, 2026, compared to 2.41% for the three months ended March 31, 2025, an increase of 22 basis points. Our net interest margin was 3.75% for the three months ended March 31, 2026, an increase of 20 basis points from 3.55% from the three months ended March 31, 2025. This was largely due to increases in yields and average balances on interest-bearing asset and a decrease in total cost of funds.

Current wording

Net interest spread was 2.69% for the three months ended June 30, 2026, compared to 2.44% for the three months ended June 30, 2025, an increase of 25 basis points. Our net interest margin was 3.78% for the three months ended June 30, 2026, an increase of 23 basis points from 3.55% from the three months ended June 30, 2025. This was largely due to increases in yields and average balances on interest-bearing assets and a decrease in total cost of funds.

Previous wording

The yield on average earning assets was 5.11% for the three months ended March 31, 2026, compared to 5.06% for the same period in 2025, an increase of 5 basis points. This increase was driven primarily by an increase in average balances of loans and securities, as well as an increase in loan yields.

Current wording

The yield on average earning assets was 5.14% for the three months ended June 30, 2026, compared to 5.07% for the same period in 2025, an increase of 7 basis points. This increase was driven primarily by an increase in higher yielding assets such as loans and securities.

Previous wording

The average rate on interest-bearing liabilities was 2.48% for the three months ended March 31, 2026, a decrease of 17 basis points from the three months ended March 31, 2025, which was primarily due to a decrease in interest rates which leads to lower interest expense paid for deposits, offset by an increase in average balances of interest-bearing deposits. Non-interest-bearing deposits represented 40.7% of average deposits for the three months ended March 31, 2026, compared to 39.3% for the three months ended March 31, 2025.

Current wording

The average rate on interest-bearing liabilities was 2.45% for the three months ended June 30, 2026, a decrease of 18 basis points from the three months ended June 30, 2025, which was primarily due to a decrease in interest rates which leads to lower interest expense paid for deposits. Non-interest-bearing deposits represented 40.2% of average deposits for the three months ended June 30, 2026, compared to 38.2% for the three months ended June 30, 2025.

Previous wording

Net interest income was$80.2 million for the three months ended March 31, 2026, compared to$70.6 million for the three months ended March 31, 2025. The$9.6 million increase, or 13.6% increase from the three months ended March 31, 2025 was primarily attributable to higher yields and average balances on interest-earning assets, and lower costs on interest bearing liabilities, partially offset by higher average balances on interest-bearing liabilities.

Current wording

Net interest income was$166.2 million for the six months ended June 30, 2026, compared to$143.5 million for the six months ended June 30, 2025. The$22.7 million increase, or 15.8% increase from the six months ended June 30, 2025 was primarily attributable to higher yields and average balances on interest-earning assets, and lower costs on interest bearing liabilities, partially offset by higher average balances on interest-bearing liabilities.

Previous wording

Provision for credit losses was an expense of $13.5 million for the three months ended March 31, 2026 compared to an expense of $0.6 million for the three months ended March 31, 2025. Overall, the increase in provision for credit losses during the three months ended March 31, 2025 was primarily driven by a $9.2 million increase in specific reserves established or increased on $78.0 million of multifamily loans to a single-borrower after the borrower indicated an expected default. The remaining provision was attributable to charge-offs on our consumer solar and commercial and industrial portfolios, and additional specific reserves on nonperforming loans. This was partially offset by reserve releases due to declining balances in the consumer solar loan portfolio as a result of the Company's portfolio runoff strategy, and lower required reserves on C&I loans.

Current wording

Provision for credit losses totaled an expense of $17.9 million for the six months ended June 30, 2026 compared to an expense of $5.5 million for the same period in 2025. Overall, the increase in provision for credit losses during the six months ended June 30, 2026 was primarily driven by a $10.3 million increase in specific reserves established or increased on $78.0 million of multifamily loans to a single-borrower after the borrower indicated an expected default during the three months ended March 31, 2026. The remaining provision was attributable to charge-offs on our consumer solar and commercial and industrial portfolios, additional specific reserves on nonperforming loans, and additional required reserves on the consumer solar portfolio from the ACL model. This was partially offset by a reserve release on a construction loan that paid off, reserve releases due to declining balances in the consumer solar loan portfolio as a result of the Company's portfolio runoff strategy, and lower required reserves on C&I loans.

Previous wording

Non-interest income was$13.3 million for the three months ended March 31, 2026, compared to$6.4 million for the three months ended March 31, 2025. The increase of $6.9 million for thethree months ended March 31, 2026 compared to thethree months ended March 31, 2025 was primarily due to a $3.8 million increase in service charges on deposit accounts primarily due to increases in IntraFi Insured Cash Sweep network ("ICS") One-Way Sell income, a $3.1 million increase in equity investment income, and a $0.7 million increase in bank-owned life insurance income, partially offset by a $0.8 million decrease in gain on sale of loans and changes in fair value on loans held-for-sale.

Current wording

Non-interest income was$12.3 million for the three months ended June 30, 2026, compared to$8.0 million for the three months ended June 30, 2025. The increase of $4.3 million for thethree months ended June 30, 2026 compared to thethree months ended June 30, 2025 was primarily due to a$3.0 million increase in service charges on deposit accounts primarily due to increases in IntraFi Insured Cash Sweep network ("ICS") One-Way Sell income, a$1.0 million decrease in losses on sale of securities and other assets, and a$0.4 million increase in trust department fees income, offset by a$0.1 million decrease in bank-owned life insurance income.

Previous wording

Non-interest expense for the three months ended March 31, 2026 was $45.9 million, an increase of $4.2 million from $41.7 million for the three months ended March 31, 2025. The increase was driven by a $2.4 million increase in compensation and benefits expense, a $1.0 million increase in technology expense, a $0.9 million increase in occupancy and depreciation expense, a $0.6 million increase in advertising and promotion expense, and a $0.5 million increase in other expenses, partially offset by $1.0 million decrease in professional fees.

Current wording

Non-interest expense for the three months ended June 30, 2026 was $47.3 million, an increase of $6.7 million from $40.6 million for the three months ended June 30, 2025. The increase was driven by a $3.9 million increase in compensation and benefits expense consisting of accruals related to increased performance, as well as for the additional payroll period in 2026, a $1.9 million increase in technology expense related to implementation of key modernization projects, $0.6 million increase in other expenses, and a $0.5 million increase in advertising and promotion expense, partially offset by $0.3 million decrease in professional fees.

Previous wording

We had a provision for income tax expense of $8.8 million for the three months ended March 31, 2026, compared to $9.7 million for the three months ended March 31, 2025. Our effective tax rate for the three months ended March 31, 2026 was 26.0% compared to 28.0% for the three months ended March 31, 2025. The decrease in the effective tax rate for three months ended March 31, 2026 is primarily driven by additional discrete tax liabilities in the three months ended March 31, 2025 related to a city and state tax examination, which was resolved in 2025.

Current wording

We had a provision for income tax expense of $11.9 million for the three months ended June 30, 2026, compared to $9.5 million for the three months ended June 30, 2025. Our effective tax rate for the three months ended June 30, 2026 was 25.4% compared to 26.7% for the three months ended June 30, 2025. The decrease in the effective tax rate for three months ended June 30, 2026 is primarily driven by a recognition of a $0.5 million solar tax credit purchased in the quarter.

Previous wording

Our total assets were $9.17 billion at March 31, 2026, compared to $8.87 billion at December 31, 2025. Notable changes within individual balance sheet line items include a $353.5 million increase in securities, a $228.9 million increase in deposits, a $111.5 million decrease in cash, a $65.5 million increase in net loans receivable, and a $17.5 million increase in resell agreements.

Current wording

Our total assets were $9.41 billion at June 30, 2026, compared to $8.87 billion at December 31, 2025. Notable changes within individual balance sheet line items include a $509.2 million increase in deposits, a $474.8 million increase in securities, a $180.4 million increase in net loans receivable, a $123.4 million decrease in cash, and a $10.6 million increase in resell agreements.

Previous wording

Our investment securities portfolio consists of securities classified as available for sale and held-to-maturity. There were no trading securities in our investment portfolio at March 31, 2026 or at December 31, 2025. All available for sale securities are carried at fair value and may be used for liquidity purposes should management consider it to be in our best interest.

Current wording

Our investment securities portfolio consists of securities classified as available for sale and held-to-maturity. There were no trading securities in our investment portfolio at June 30, 2026 or at December 31, 2025.

Previous wording

Our held-to-maturity securities portfolio primarily consisted of PACE assessments, tax-exempt municipal securities, GSE commercial and residential certificates and other debt. We carry these securities at amortized cost. We had held-to-maturity securities of $1.55 billion at March 31, 2026, and $1.55 billion at December 31, 2025.

Current wording

Our held-to-maturity securities portfolio primarily consists of PACE assessments, tax-exempt municipal securities, GSE commercial and residential certificates and other debt. We carry these securities at amortized cost. We had held-to-maturity securities of $1.57 billion at June 30, 2026, and $1.55 billion at December 31, 2025.

Previous wording

During the three months ended March 31, 2026 we purchased a total of $452.0 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $46.2 million and a net realized loss of $0.8 million as part of normal and ongoing balance sheet management. During the three months ended March 31, 2025 we purchased a total of $161.8 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $16.1 million and a net realized loss of $0.7 million as part of routine and ongoing balance sheet management.

Current wording

During the six months ended June 30, 2026 we purchased a total of $890.6 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $135.2 million and a net realized loss of $0.9 million as part of normal and ongoing balance sheet management. During the six months ended June 30, 2025 we purchased a total of $508.5 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $56.1 million and a net realized loss of $1.7 million as part of routine and ongoing balance sheet management.

Previous wording

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities totaled $18.5 million at March 31, 2026 and $29.8 million at December 31, 2025, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status. The allowance for credit losses for held-to-maturity securities at March 31, 2026 was $0.7 million compared to $0.7 million at December 31, 2025. The provision for credit losses for held-to-maturity securities was an expense of $5.0 thousand for the three months ended March 31, 2026, compared to a recovery of $3.0 thousand for the three months ended March 31, 2025.

Current wording

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities totaled $23.7 million at June 30, 2026 and $29.8 million at December 31, 2025, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status. The allowance for credit losses for held-to-maturity securities at June 30, 2026 was $0.8 million compared to $0.7 million at December 31, 2025. The provision for credit losses for held-to-maturity securities was an expense of $38.0 thousand for the three months ended June 30, 2026 and $43.0 thousand for the six months ended June 30, 2026, compared to an expense of $3.0 thousand for the three months ended June 30, 2025 and an immaterial recovery for the six months June 30, 2025.

Previous wording

Accrued interest receivable on available-for-sale debt securities totaled $13.7 million at March 31, 2026 and $11.8 million at December 31, 2025, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.

Current wording

Accrued interest receivable on available-for-sale debt securities totaled $15.9 million at June 30, 2026 and $11.8 million at December 31, 2025, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.

Previous wording

Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and Property Assessed Clean Energy ("PACE") assessments. All non-agency securities, composed of non-agency commercial mortgage-backed securities, collateralized loan obligations, non-agency mortgage-backed securities, and asset-backed securities, are senior tranche and approximately 87.1% carry AAA credit ratings and 12.9% carry A credit ratings or higher. As of March 31, 2026, our securities portfolio has a weighted average yield of 4.88% and an estimated weighted average life of 5.4 years. Approximately 58.1% of this portfolio is classified as “available for sale.” In total, our securities portfolio including FHLBNY stock represented 41.2% of total interest-earning assets as of March 31, 2026.

Current wording

Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and PACE assessments. All non-agency securities, composed of non-agency commercial mortgage-backed securities, collateralized loan obligations, non-agency mortgage-backed securities, and asset-backed securities, are senior tranche and approximately 89.0% carry AAA credit ratings and 11.0% carry A credit ratings or higher.

Previous wording

Lending-related income is the most important component of our net interest income and is the main driver of our results of operations. Total loans, net of deferred origination fees and costs, and allowance for credit losses, were $4.97 billion as of March 31, 2026 compared to $4.90 billion as of December 31, 2025. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending. We intend to focus any organic growth in our loan portfolio on these lending areas as part of our strategic plan.

Current wording

Lending-related income is the most important component of our net interest income and is the main driver of our results of operations. Total loans, net of deferred origination fees and costs, and allowance for credit losses, were $5.08 billion as of June 30, 2026 compared to $4.90 billion as of December 31, 2025. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending. We intend to focus any organic growth in our loan portfolio on these lending areas as part of our strategic plan.

Previous wording

Our commercial loan portfolio comprised 68.8% of our total loan portfolio at March 31, 2026 and 67.9% of our total loan portfolio at December 31, 2025. The major categories of our commercial loan portfolio are discussed below:

Current wording

Our commercial loan portfolio comprised 70.3% of our total loan portfolio at June 30, 2026 and 67.9% of our total loan portfolio at December 31, 2025. The major categories of our commercial loan portfolio are discussed below:

Previous wording

C&I. Our C&I loans are generally made to small and medium-sized manufacturers and wholesale, retail and service-based businesses to provide either working capital or to finance major capital expenditures. In addition, our C&I portfolio includes commercial solar financings; for many of these we are the sole lender, while for some others we are either the lead bank or are a participant in a syndicated credit facility led by another institution. The primary source of repayment for C&I loans is generally operating cash flows of the business or project. We also seek to minimize risks related to these loans by requiring such loans to be collateralized by various business assets (including inventory, equipment, accounts receivable, and the assignment of contracts that generate cash flow). The average size of our C&I loans at March 31, 2026 by exposure was $4.3 million with a median size of $1.0 million. Our lending strategy focuses on developing full customer relationships including deposits, cash management, and lending. The businesses that we focus on are generally mission aligned with our core values, including organic and natural products, sustainable companies, clean energy, nonprofits, and B Corporations TM.

Current wording

C&I. Our C&I loans are generally made to small and medium-sized manufacturers and wholesale, retail and service-based businesses to provide either working capital or to finance major capital expenditures. In addition, our C&I portfolio includes commercial solar financings; for many of these we are the sole lender, while for some others we are either the lead bank or are a participant in a syndicated credit facility led by another institution. The primary source of repayment for C&I loans is generally operating cash flows of the business or project. We also seek to minimize risks related to these loans by requiring such loans to be collateralized by various business assets (including inventory, equipment, accounts receivable, and the assignment of contracts that generate cash flow). The average size of our C&I loans at June 30, 2026 by exposure was $4.3 million with a median size of $0.9 million. Our lending strategy focuses on developing full customer relationships including deposits, cash management, and lending. The businesses that we focus on are generally mission aligned with our core values, including organic and natural products, sustainable companies, clean energy, nonprofits, and B Corporations TM.

Previous wording

Our C&I loans totaled $1.29 billion at March 31, 2026, which comprised 25.7% of our total loan portfolio. During the three months ended March 31, 2026, the C&I loan portfolio decreased by 3.1% from $1.33 billion at December 31, 2025.

Current wording

Our C&I loans totaled $1.31 billion at June 30, 2026, which comprised 25.4% of our total loan portfolio. During the six months ended June 30, 2026, the C&I loan portfolio decreased by 2.1% from $1.33 billion at December 31, 2025.

Previous wording

Multifamily. Our multifamily loans are generally used to purchase or refinance apartment buildings of five units or more, which collateralize the loan, in major metropolitan areas within our markets. Multifamily loans have 61% of their exposure in New York City. Our multifamily loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV, based on underwriting appraisal value, of our multifamily loans is approximately 57%.

Current wording

Multifamily. Our multifamily loans are generally used to purchase or refinance apartment buildings of five units or more, which collateralize the loan, in major metropolitan areas within our markets. Multifamily loans have 65% of their exposure in New York City. Our multifamily loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV, based on underwriting appraisal value, of our multifamily loans is approximately 55%.

Previous wording

Our multifamily loans totaled $1.78 billion at March 31, 2026, which comprised 35.3% of our total loan portfolio. During the three months ended March 31, 2026, the multifamily loan portfolio increased by 8.1% from $1.64 billion at December 31, 2025.

Current wording

Our multifamily loans totaled $1.86 billion at June 30, 2026, which comprised 36.2% of our total loan portfolio. During the six months ended June 30, 2026, the multifamily loan portfolio increased by 13.2% from $1.64 billion at December 31, 2025.

Previous wording

CRE. Our CRE loans are used to purchase or refinance office buildings, retail centers, industrial facilities, medical facilities and mixed-used buildings. CRE loans have 63% of their exposure in New York City. Our CRE loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV, based on underwriting appraisal value, of our CRE loans is approximately 45%.

Current wording

CRE. Our CRE loans are used to purchase or refinance office buildings, retail centers, industrial facilities, medical facilities and mixed-used buildings. CRE loans have 55% of their exposure in New York City. Our CRE loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV, based on underwriting appraisal value, of our CRE loans is approximately 44%.

Previous wording

Our CRE loans totaled $379.9 million at March 31, 2026, which comprised 7.5% of our total loan portfolio. During the three months ended March 31, 2026, the CRE loan portfolio increased by 4.6% from $363.3 million at December 31, 2025.

Current wording

Our CRE loans totaled $436.1 million at June 30, 2026, which comprised 8.5% of our total loan portfolio. During the six months ended June 30, 2026, the CRE loan portfolio increased by 20.1% from $363.3 million at December 31, 2025.

Previous wording

Our retail loan portfolio comprised 31.2% of our total loan portfolio at March 31, 2026 and 32.1% of our loan portfolio at December 31, 2025. The major categories of our retail loan portfolio are discussed below.

Current wording

Our retail loan portfolio comprised 29.7% of our total loan portfolio at June 30, 2026 and 32.1% of our loan portfolio at December 31, 2025. The major categories of our retail loan portfolio are discussed below.

Previous wording

As of March 31, 2026, our residential real estate lending loans totaled $1.23 billion at March 31, 2026, which decreased by 0.9% from $1.24 billion at December 31, 2025. The residential real estate portfolio comprised 78.2% of our retail loan portfolio and 24.4% of our total loan portfolio, and is 99% first mortgage loans and 1% second mortgage loans.

Current wording

As of June 30, 2026, our residential real estate lending loans totaled $1.20 billion at June 30, 2026, which decreased by 3.1% from $1.24 billion at December 31, 2025. The residential real estate portfolio comprised 78.5% of our retail loan portfolio and 23.3% of our total loan portfolio, and is 99% first mortgage loans and 1% second mortgage loans.

Previous wording

Consumer solar. Our consumer solar portfolio is comprised of purchased residential solar loans, secured by Uniform Commercial Code financing statements. Our consumer solar portfolio is fully acquired and is in run-off mode. Our consumer solar loans totaled $315.0 million at March 31, 2026, which comprised 6.3% of our total loan portfolio, compared to $325.2 million, or 6.6% of our total loan portfolio, at December 31, 2025.

Current wording

Consumer solar. Our consumer solar portfolio is comprised of purchased residential solar loans, secured by Uniform Commercial Code financing statements. Our consumer solar portfolio is fully acquired and is in run-off mode. Our consumer solar loans totaled $303.5 million at June 30, 2026, which comprised 5.9% of our total loan portfolio, compared to $325.2 million, or 6.6% of our total loan portfolio, at December 31, 2025.

Previous wording

Consumer and other. Our consumer and other portfolio is comprised of purchased student loans, unsecured consumer loans and overdraft lines. Our consumer and other loans totaled $25.9 million at March 31, 2026, which comprised 0.5% of our total loan portfolio, compared to $27.7 million, or 0.5% of our total loan portfolio, at December 31, 2025.

Current wording

Consumer and other. Our consumer and other portfolio is comprised of purchased student loans, unsecured consumer loans and overdraft lines. Our consumer and other loans totaled $24.5 million at June 30, 2026, which comprised 0.5% of our total loan portfolio, compared to $27.7 million, or 0.5% of our total loan portfolio, at December 31, 2025.

Previous wording

The following tables presents, by loan type, the changes in the allowance for credit losses for the three months ended March 31, 2026 and March 31, 2025:

Current wording

The following tables presents, by loan type, the changes in the allowance for credit losses for the three and six months ended June 30, 2026 and June 30, 2025:

Previous wording

The allowance for credit losses on loans increased$10.6 million to$68.2 million at March 31, 2026 from$57.6 millionat December 31, 2025, primarily as a result of an increase of specific reserves on nonperforming loans. The ratio of allowance to total loans was 1.35% at March 31, 2026 and 1.16% at December 31, 2025.

Current wording

The allowance for credit losses on loans increased$11.4 million to$68.9 million at June 30, 2026 from$57.6 millionat December 31, 2025, primarily due to increases in reserves of $10.3 million for a single borrower relationship that moved to nonaccrual status during the three months ended March 31, 2026. The ratio of allowance to total loans was 1.34% at June 30, 2026 and 1.16% at December 31, 2025.

Previous wording

At March 31, 2026 the allowance for credit losses on held-to-maturity securities was $0.7 million, compared to $0.7 million at December 31, 2025.

Current wording

At June 30, 2026 the allowance for credit losses on held-to-maturity securities was $0.8 million, compared to $0.7 million at December 31, 2025.

Previous wording

Nonperforming assets totaled $98.9 million, or 1.08% of period-end total assets at March 31, 2026, an increase of $70.2 million, compared with $28.7 million, or 0.32% of period-end total assets at December 31, 2025. The increase in non-performing assets at March 31, 2026 compared to December 31, 2025 assets was primarily driven by a $71.5 million increase in multifamily nonaccrual loans to a single-borrower after the borrower indicated an expected default, offset by a $0.7 million decrease in commercial and industrial nonaccrual loans.

Current wording

Nonperforming assets totaled $102.7 million, or 1.09% of period-end total assets at June 30, 2026, an increase of $74.0 million, compared with $28.7 million, or 0.32% of period-end total assets at December 31, 2025. The increase in nonperforming assets at June 30, 2026 compared to December 31, 2025 assets was primarily driven by $73.9 million increase in multifamily nonaccrual loans and $0.5 million increase in residential real estate nonaccrual loans, offset by a $2.3 million decrease in construction nonaccrual loans and a $0.5 million decrease in commercial and industrial nonaccrual loans. The increase in multifamily nonaccrual loans was primarily due to $78.0 million of multifamily loans to a single-borrower that moved to nonaccrual status after the borrower indicated an expected default during the three months ended March, 31, 2026.

Previous wording

Potential problem loans are loans which management has doubts as to the ability of the borrowers to comply with the present loan repayment terms. Potential problem loans are performing loans and include our special mention and substandard-accruing commercial loans and/or retail loans 30-89 days past due. Potential problem loans are not included in the nonperforming assets table above and totaled $62.2 million, or 0.7% of total assets, at March 31, 2026, and $99.8 million, or 1.1% of total assets, at December 31, 2025.

Current wording

Potential problem loans are loans which management has doubts as to the ability of the borrowers to comply with the present loan repayment terms. Potential problem loans are performing loans and include our special mention and substandard-accruing commercial loans and/or retail loans 30-89 days past due. Potential problem loans are not included in the nonperforming assets table above and totaled $65.0 million, or 0.7% of total assets, at June 30, 2026, and $99.8 million, or 1.1% of total assets, at December 31, 2025.

Previous wording

As of March 31, 2026, we entered into $66.1 million of short term investments of resell agreements backed by government guaranteed loans and other loans, with a weighted average interest rate of 5.88%. As of December 31, 2025, we have entered into $48.7 million of short term investments of resell agreements backed by government guaranteed loans and other loans, with a weighted interest rate of 6.00%.

Current wording

As of June 30, 2026, we entered into $59.3 million of short term investments of resell agreements backed by government guaranteed loans and other loans, with a weighted average interest rate of 5.84%. As of December 31, 2025, we entered into $48.7 million of short term investments of resell agreements backed by government guaranteed loans and other loans, with a weighted interest rate of 6.00%.

Previous wording

We had a deferred tax asset, net of deferred tax liabilities, of $31.3 million at March 31, 2026 and $30.8 million at December 31, 2025. As of March 31, 2026, our deferred tax assets were fully realizable with no valuation allowance held against the balance. Our management concluded that it was more-likely-than-not that the entire amount will be realized.

Current wording

We had a deferred tax asset, net of deferred tax liabilities, of $33.3 million at June 30, 2026 and $30.8 million at December 31, 2025. As of June 30, 2026, our deferred tax assets were fully realizable with no valuation allowance held against the balance. Our management concluded that it was more-likely-than-not that the entire amount will be realized.

Previous wording

Deposits represent our primary source of funds. We are focused on growing our core deposits through relationship-based banking with our business and consumer clients. Total deposits were $8.18 billion at March 31, 2026, compared to $7.95 billion at December 31, 2025. We believe that our strong deposit franchise is attributable to our mission-based strategy of developing and maintaining relationships with our clients who share similar values and through maintaining a high level of service.

Current wording

Deposits represent our primary source of funds. We are focused on growing our core deposits through relationship-based banking with our business and consumer clients. Total deposits were $8.46 billion at June 30, 2026, compared to $7.95 billion at December 31, 2025. We believe that our strong deposit franchise is attributable to our mission-based strategy of developing and maintaining relationships with our clients who share similar values and through maintaining a high level of service.

Previous wording

We gather deposits through each of our three branch locations across New York City, our one branch in Washington, D.C., our one branch in San Francisco and through the efforts of our commercial banking team including our Boston group which focuses nationally on business growth. Through our branch network, online, mobile and direct banking channels, we offer a variety of deposit products including demand deposit accounts, money market deposits, NOW accounts, savings and certificates of deposit, ICS accounts, Certificate of Deposit Account Registry Service accounts, and brokered certificates of deposit. We bank politically active customers, such as campaigns, political action committees ("PACs"), and state and national party committees, which we refer to as political deposits. These deposits exhibit seasonality based on election cycles. As of March 31, 2026 and December 31, 2025, we had approximately $1.86 billion and $1.73 billion, respectively, in political deposits on- and off-balance sheet which are primarily in demand deposits.

Current wording

We gather deposits through each of our offices or branches across New York City, Washington, D.C., northern California and through the efforts of our commercial banking team including our Boston group which focuses nationally on business growth. Through our branch network, online, mobile and direct banking channels, we offer a variety of deposit products including demand deposit accounts, money market deposits, NOW accounts, savings and certificates of deposit, ICS accounts, Certificate of Deposit Account Registry Service accounts, and brokered certificates of deposit. We bank politically active customers, such as campaigns, political action committees ("PACs"), and state and national party committees, which we refer to as political deposits. These deposits exhibit seasonality based on election cycles. As of June 30, 2026 and December 31, 2025, we had approximately $2.08 billion and $1.73 billion, respectively, in political deposits on- and off-balance sheet which are primarily in demand deposits.