Columbia Financial, Inc./MD/

1. Basis of Financial Statement Presentation

Columbia Financial, Inc. (the “Company”) is a Maryland corporation that was incorporated in January 2026 as the successor to Columbia Financial, Inc., a Delaware corporation (“Columbia Financial-Delaware”) and the former mid-tier stock holding company for Columbia Bank ("the Bank") or ("Columbia"), upon completion of the second-step conversion of the Bank from the two-tier mutual holding company structure to the stock holding company structure. Columbia Bank MHC was the former mutual holding company for Columbia Financial-Delaware prior to completion of the second-step conversion. In conjunction with the second-step conversion, Columbia Bank MHC merged into Columbia Financial-Delaware (and ceased to exist), and Columbia Financial-Delaware merged into the Company, with the Company as the surviving entity. The second-step conversion was completed on July 20, 2026, at which time the Company sold, for gross proceeds of $1.7 billion, a total of 167,236,353 shares of common stock at $10.00 per share, including 5,017,091 shares purchased by the Bank’s employee stock ownership plan (the "ESOP"). As part of the second-step conversion, each of the existing outstanding shares of Columbia Financial-Delaware common stock owned by persons other than Columbia Bank MHC were converted into 2.2000 shares of Company common stock, and all historical share and per share information included in this report has been revised to reflect this exchange ratio.

The Company recognized direct stock offering costs of $39.5 million in conjunction with the transaction which reduced the net proceeds credited to capital. After adjusting for transaction costs and the value of the shares issued to the Bank's ESOP, the Company recognized a net increase in equity capital of $1.6 billion, of which $816.4 million was contributed to the Bank by the Company as additional investment in the Bank's common equity. Approximately $183.4 million of new capital proceeds were funded through withdrawals of existing customer deposits previously held at the Bank.

In addition, on July 20, 2026, the Company completed its acquisition of Northfield Bancorp, Inc. (“Northfield”). In connection with the completion of the Northfield acquisition, each share of Northfield common stock was converted into the right to receive either $14.25 in cash or 1.425 shares of Company common stock, or a combination thereof, subject to the elections made and proration procedures, for an aggregate transaction value of $580.3 million. The final aggregate merger consideration at closing was comprised of 70% Company common stock and 30% cash. Cash in lieu of fractional shares was paid at a rate of $10.00 per share.

Unless the context otherwise requires, references in this Quarterly Report on Form 10-Q to the “Company,” “we,” “us,” and “our” used for periods prior to the completion of the second-step conversion refer to Columbia Financial-Delaware and, for periods after the completion of the second-step conversion, to the Company, in each case including its consolidated subsidiaries.

The accompanying consolidated financial statements include the accounts of the Company, Columbia, and Columbia's wholly-owned subsidiaries, Columbia Investment Services, Inc., 1901 Residential Management Co. LLC, First Jersey Title Services, Inc., 1901 Commercial Management Co. LLC, Stewardship Realty LLC, Columbia Insurance Services Inc., 19-01 Community Development Corporation, NSB Services Corp. and NSB Realty Trust (collectively, the “Company”). In consolidation, all intercompany accounts and transactions are eliminated.

In preparing the interim unaudited consolidated financial statements, management is required to make estimates, significant judgments and assumptions that affect the reported amounts of assets and liabilities as of the dates of the Consolidated Statements of Financial Condition and Consolidated Statements of Income for the periods presented. Actual results could differ from these judgments and estimates under different conditions, resulting in a change that could have a material impact on the carrying values of our assets and liabilities and our results of operations. Material estimates that involve significant judgments and assumptions that are particularly susceptible to change are the determination of the adequacy of the allowance for credit losses, evaluation of the need for valuation allowances on deferred tax assets, fair values of assets acquired and liabilities assumed in a business combination, and a determination of liabilities related to retirement and other post-retirement benefits. These estimates, significant judgments and assumptions are evaluated on an ongoing basis and are adjusted when facts and circumstances dictate.

The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three and nine months ended September 30, 2026 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or any other period.

The interim unaudited consolidated financial statements of the Company presented herein have been prepared in accordance with the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and U.S. generally accepted accounting principles (“GAAP”). Certain information and note disclosures have been condensed or omitted pursuant to the rules and regulations of the SEC.

These unaudited consolidated financial statements should be read in conjunction with Columbia Financial-Delaware's Annual Report on Form 10-K for the year ended December 31, 2025, and the audited consolidated financial statements included therein.

2. Earnings per Share

Basic earnings per share ("EPS") is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. For purposes of calculating basic EPS, weighted average common shares outstanding excludes treasury stock, unallocated employee stock ownership plan shares that have not been committed for release and deferred compensation obligations required to be settled in shares of Company stock.

Diluted EPS is computed using the same method as basic EPS and reflects the potential dilution which could occur if stock options and unvested shares were exercised and converted into common stock. The potentially diluted shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2026 and 2025:

During the three and nine months ended September 30, 2026 and 2025, the average number of stock options which could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive totaled 6,581,012 and 9,035,448 and 6,953,497 and 8,896,599, respectively.

3. Acquisition

Northfield Bank

On July 20, 2026, the Company completed its acquisition of Northfield, whereby each share of Northfield common stock was converted into the right to receive either $14.25 in cash or 1.425 shares of Company common stock, or a combination thereof, subject to the elections made and proration procedures, for an aggregate transaction value of $580.3 million. The final aggregate merger consideration at closing was comprised of approximately 70% of Company common stock, or 40,720,930 shares, and approximately 30% cash, or $174.1 million. Cash in lieu of fractional shares was paid at a rate of $10.00 per share. Northfield's results of operations from July 21, 2026 through September 30, 2026 are included in the Company's consolidated results for the three and nine months ended September 30, 2026, but are not included in the Company's results of operations for the corresponding prior year periods.

Merger-related expenses are recorded in the Consolidated Statements of Income and are expensed as incurred. Direct acquisition and other charges incurred in connection with the Northfield acquisition totaled $30.6 million and $33.3 million during the three and nine months ended September 30, 2026.

The following table sets forth the assets acquired and liabilities assumed in the Northfield acquisition, at their estimated fair values as of the closing date of the transaction:

The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. As the purchase price for Northfield was less than the fair value of the net assets acquired, the transaction resulted in the recognition of a bargain purchase gain of $25.7 million which is included in non-interest income in Consolidated Statements of Income and arose primarily from transaction-specific market factors. The determination of the fair value of assets acquired and liabilities assumed required management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are subjective in nature and subject to change for up to one year after the closing date of the acquisition as additional information becomes available, and the measurement period ends July 20, 2027. Changes to the acquisition date fair values of assets acquired and liabilities assumed during the measurement period may result in adjustments to the bargain purchase gain. During the period from January 1, 2026 to September 30, 2026, there were no measurement period adjustments made to the assets acquired or liabilities assumed.

Fair Value Measurement of Assets Acquired and Liabilities Assumed

Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in the Northfield acquisition:

Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as these financial instruments are either due on demand or have short-term maturities.

Debt securities available for sale. The estimated fair values of the acquired debt securities available for sale were determined principally on the basis of market sale prices, and to a lesser extent, by utilizing Level 2 and Level 3 inputs. With respect to fixed income instruments for which values were not derived from market sales prices, such prices were obtained from an independent pricing service where available, or from dealer market participants with whom the Company has historically transacted with for both purchases and sales of securities. These prices are derived from market quotations and matrix pricing. These fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, and the bond's terms and conditions, among other things. Management reviewed the data and assumptions used in pricing securities by its third-party provider to ensure the highest level of significant inputs are derived from market observable data.

Loans held-for-sale. The acquired portfolio was valued based on estimated sales price, net of estimated costs to sell, from an observable transaction completed shortly after the acquisition date, as this was determined to be the best indicator of fair value. The increase in market interest rates which occurred between the acquisition date and the sale date resulted in a loss which was recorded in the Consolidated Statements of Income during the quarter ended September 30, 2026.

Loans receivable. The acquired loan portfolio was segregated into pools for valuation purposes primarily based on loan type, non-accrual status, and credit risk rating. The estimated fair values were computed by discounting the expected cash flows from the respective pools. Cash flows were estimated by using valuation models that incorporated estimates of current key assumptions such as prepayment speeds, default rates, and loss severity rates. The process included: (1) projecting monthly principal and/or interest cash flows based on the contractual terms of the loans, including both maturity and contractual amortization; (2) adjusting projected cash flows for expected losses and prepayments, where appropriate; (3) developing a discount rate based on the relative risk of the cash flows, considering the loan type, liquidity risk, the maturity of the loans, servicing costs, and a required return on capital; and (4) discounting the projected cash flows to a present value, to arrive at the calculated value of the loans.

The methods used to estimate the fair values of loans are extremely sensitive to the assumptions used. While management attempted to use assumptions and estimates that best reflected the acquired loan portfolios and current market conditions, a greater degree of subjectivity is inherent in the values than in those determined in active markets.

The following table presents the purchased seasoned loans ("PSL") and purchased credit deteriorated ("PCD") on loans held for investment excluding loans held-for-sale:

Upon completion of the acquisition, the Company sold $54.1 million of multifamily loans that were classified as loans held-for-sale, with servicing released. Held-for-sale loans were valued based on the executed sales price, net of estimated costs to sell, derived from an observable market transaction completed shortly after the acquisition date. Management concluded that the transaction price represented the best evidence of fair value, as no significant changes in market conditions or the underlying loan characteristics occurred between the acquisition date and the sale date.

Office properties and equipment, net. The fair value of land and buildings was estimated using current appraisals. Acquired equipment was not material. Buildings are generally amortized over 40 years. Equipment is amortized or depreciated over their estimated useful lives usually ranging from three years toseven years.

Bank-owned life insurance. Bank-owned life insurance is accounted for using the cash surrender value method and is recorded at its net realizable value.

Core deposit intangibles. Core deposit intangibles ("CDI") are the measure of the value of non-maturity deposits in a business combination. The fair value of the CDI was calculated utilizing the cost savings approach, the expected cost savings attributable to the core deposits funding relative to an alternative source of funding, using a discounted cash flow present value methodology. Key inputs and assumptions utilized in the discounted cash flow present value methodology include core deposit balances and rates paid, the cost of an additional funding source, the aggregate life of deposits and truncation points, non-interest deposit costs, and the immediate deposit outflow assumption. The Company recorded a CDI of $76.2 million which is being amortized overten years using an accelerated amortization method.

Deposits. The fair values of deposit liabilities with no stated maturity (i.e., non-interest-bearing and interest-bearing demand deposit accounts, money market and savings and club deposits) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represents contractual cash flows, discounted to present value using interest rates currently offered on deposits with similar characteristics and remaining maturities.

Borrowings. The fair values of borrowings consisting of FHLB advances were estimated by discounting future cash flows using market discount rates for borrowings with similar characteristics, terms and remaining maturities. The fair value of other borrowings recognized in the Northfield acquisition, which included subordinated notes and debentures, were measured at the acquisition date using a dealer market quote. The Company prepaid $195.6 million in borrowings resulting in a $196,000 loss on extinguishment of debt.

Supplemental Pro Forma Financial Information

The following table presents information regarding the Northfield operations included in the Consolidated Statements of Income from the date of acquisition July 21, 2026 through September 30, 2026. In addition, the table provides unaudited condensed pro forma financial information assuming the merger had been completed as of January 1, 2026 for the nine months ended September 30, 2026.The table below has been prepared for comparative purposes only and it not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results.

The unaudited pro forma information does not reflect management's estimates of any revenue- enhancing opportunities or anticipated cost savings that may be realized as a result of the integration and consolidation of Northfield's operations. The pro forma information presented gives effect to estimated purchase accounting fair value adjustments, merger-related expenses of $41.1 million (which had an estimated tax-adjusted earnings impact of $0.12) assumed to have been incurred in 2026 and therefore excluded from 2026 results, the removal of Northfield's 2026 goodwill impairment charge, and related income tax effects, including the application of the combined entity's effective tax rate. Average diluted shares outstanding include shares issued in connection with the Northfield acquisition.

4. Stock Repurchase Program

On September 8, 2025, the Company announced that its Board of Directors authorized the Company's seventh stock repurchase program to acquire up to 1,800,000 shares, or approximately 1.7% of the Company's then issued and outstanding common stock. During the three and nine months ended September 30, 2026, there wereno repurchases made by the Company as the plan was discontinued in conjunction with the Company's second-step conversion and stock offering. During the three and nine months ended September 30, 2025, the Company repurchased 183,864 shares at a cost of approximately $2.8 million, or $15.43 per share, under the 2025 program. Under current federal regulations, subject to limited exceptions, we may not repurchase shares of our common stock during the first year following the completion of our second-step conversion, which was completed on July 20, 2026.

5. Summary of Significant Accounting Policies

Recent Accounting Pronouncements

Accounting Pronouncements Adopted

In November 2025, the FASB issued ASU 2025-08, Financial Instruments-Credit Losses (Topic 326): Purchased Loans, which amends the guidance in ASC 326 on the accounting for certain purchased loans. Under the ASU, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (“purchased seasoned loans”) by recognizing them at their purchase price plus an allowance for expected credit losses (i.e., the so-called gross-up approach). The ASU’s amendments align the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination (“PCD assets”). The amendments apply prospectively and will be effective for fiscal periods beginning after December 15, 2026 (and interim periods within) with early adoption permitted. The Company previously adopted this guidance as of January 1, 2026 and upon initial adoption, this guidance did not have a significant impact on the Company's consolidated financial statements. Subsequent to the initial adoption, in conjunction with the acquisition of Northfield on July 20, 2026, an additional $47.1 million allowance was recorded for expected credit losses on acquired loans.

Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Topic ("ASU") 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which requires disaggregated information about certain income statement line items in a tabular format in the notes to the consolidated financial statements. This update is effective for financial statements issued for fiscal years beginning after December 15, 2026, with early adoption in the interim period permitted. The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements. As it is only disclosure related, this ASU is not expected to have a significant impact on the consolidated financial statements.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements, which amends the existing requirement that cash flow hedges of groups of individual forecasted transactions designated with a single derivative as the hedging instrument share the same risk exposure. Instead, the amendments require such groups to have a similar risk exposure and clarify that the quantitative threshold for assessing similar risk exposure is consistent with the highly effective threshold used in evaluating hedge effectiveness. These amendments also provide targeted improvements and clarifications to certain other aspects of hedge accounting guidance. This update is effective for financial statements issued for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years, with early adoption permitted. The adoption of this ASU is not expected to have a significant impact on the Company's consolidated financial statements.

6. Debt Securities Available for Sale

Debt securities available for sale at September 30, 2026 and December 31, 2025 are summarized as follows:

The amortized cost and fair value of debt securities available for sale at September 30, 2026, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

6. Debt Securities Available for Sale (continued)

Mortgage-backed securities and collateralized mortgage obligations totaling $2.4 billion at amortized cost, and $2.3 billion at fair value, are not classified by maturity in the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

During the three and nine months ended September 30, 2026, proceeds from the sales of debt securities available for sale totaled $864.4 million, resulting inno gross gains and gross losses of $40.8 million. These sales included $643.3 million of debt securities available for sale acquired in the Northfield merger. During the three months ended September 30, 2026, there were calls of debt securities available for sale totaling $9.6 million, and maturities of debt securities available for sale totaling $10.0 million. During the nine months ended September 30, 2026, there were calls of debt securities available for sale totaling $15.9 million and maturities totaling $65.0 million.

During the nine months ended September 30, 2025, proceeds from the sale of debt securities available for sale totaled $15.7 million, resulting in gross gains of $336,000 andno gross losses. During the three months ended September 30, 2025, there wereno sales of debt securities available for sale. There wasone call of a debt security available for sale totaling $2.0 million and maturities totaling $10.0 million, during the three months ended September 30, 2025. During the nine months ended September 30, 2025, there were calls of debt securities available for sale totaling $2.8 million and maturities of debt securities available for sale totaling $38.5 million.

Debt securities available for sale having a carrying value of $446.7 million and $478.5 million, at September 30, 2026 and December 31, 2025, respectively, were pledged as security for public funds on deposit at the Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York.

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2026 and December 31, 2025 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

6. Debt Securities Available for Sale (continued)

The number of securities in an unrealized loss position at September 30, 2026 totaled 281, compared with 128 at December 31, 2025. All temporarily impaired securities were deemed investment grade as of September 30, 2026 and December 31, 2025.

For available for sale securities, the Company assesses whether a loss is from credit or other factors and considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows is less than the amortized cost, a credit loss would be recorded through an allowance for credit losses, limited by the amount that the fair value is less than the amortized cost basis.

There wasno activity in the allowance for credit losses on debt securities available for sale during the three and nine months ended September 30, 2026 and 2025.

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities available for sale. Accrued interest receivable on debt securities available for sale is reported as a component ofaccrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $11.8 million and $5.2 million at September 30, 2026 and December 31, 2025, respectively, and is excluded from the estimate of credit losses.

7. Debt Securities Held to Maturity

Debt securities held to maturity at September 30, 2026 and December 31, 2025 are summarized as follows:

7. Debt Securities Held to Maturity (continued)

The amortized cost and fair value of debt securities held to maturity at September 30, 2026, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

Mortgage-backed securities and collateralized mortgage obligations totaling $882.2 million at amortized cost and $827.7 million at fair value at September 30, 2026, are not classified by maturity as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

During the three and nine months ended September 30, 2026, there wereno sales, calls or maturities of debt securities held to maturity. During the three months ended September 30, 2025, there wasone maturity of a debt security held to maturity totaling $14.9 million. There wereno sales, calls or maturities of debt securities held to maturity during the nine months ended September 30, 2025.

Debt securities held to maturity having a carrying value of $339.9 million and $242.2 million, at September 30, 2026 and December 31, 2025, respectively, were pledged as security for public funds on deposit at Columbia Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York.

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2026 and December 31, 2025 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

7. Debt Securities Held to Maturity (continued)

The number of securities in an unrealized loss position at September 30, 2026 totaled 134, compared with 101 at December 31, 2025. All temporarily impaired securities were investment grade as of September 30, 2026 and December 31, 2025.

For held to maturity securities, management measures expected credit losses on a collective basis by major security type. All of the mortgage-backed securities are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses and, therefore, the expectation of non-payment is zero and the Company is not required to estimate an allowance for credit losses on these securities under the CECL standard. All of these securities reflect a credit quality rating of AAA by Moody's Investors Service.

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities held to maturity. Accrued interest receivable on debt securities held to maturity is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $3.0 million and $948,000 at September 30, 2026 and December 31, 2025, respectively, and is excluded from the estimate of credit losses.

8. Equity Securities at Fair Value

The Company has an equity securities portfolio which consists of stock in other financial institutions, a payment technology company, a community bank correspondent services company, preferred stock in U.S. Government agencies, and a Community Reinvestment Act qualifying bond fund which are reported at fair value on the Company's Consolidated Statements of Financial Condition. The fair value of the equities portfolio at September 30, 2026 and December 31, 2025 was $5.4 million and $6.8 million, respectively.

The Company recorded a net (decrease)/increase in the fair value of equity securities of $(447,000) and $(1.4) million, and $714,000 and $1.3 million respectively, during the three and nine months ended September 30, 2026 and 2025, respectively, as a component of non-interest income. During the three and nine months ended September 30, 2026 and 2025, there wereno sales of equity securities and $67,000 in equity securities were acquired in the Northfield merger.

9. Loans Receivable and Allowance for Credit Losses

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

The Company had $211.4 million of loans held-for-sale at September 30, 2026. There wereno loans held-for-sale at December 31, 2025. During the three months ended September 30, 2026, the Company sold $36.8 million and $3.0 million of commercial real estate loans, and Small Business Administration ("SBA") loans included in commercial business loans held-for-sale, respectively, resulting in gross gains of $219,000 and $7.8 million gross losses. During the nine months ended September 30, 2026, the Company sold $36.8 million, $12.2 million and $4.1 million of commercial real estate loans, Small Business Administration ("SBA") loans included in commercial business loans held-for-sale, and construction loans, respectively, resulting in gross gains of $994,000 and gross losses of $7.8 million.

During the three months ended September 30, 2025, the Company sold $3.0 million, $2.7 million and $3.1 million of one-to-four family real estate loans, construction loans, and Small Business Administration ("SBA") loans included in commercial business loans held-for-sale, respectively, resulting in gross gains of $342,000 andno gross losses. During the nine months ended September 30, 2025, the Company sold $13.4 million, $7.5 million, and $8.6 million of one-to-four family real estate loans, construction loans, and SBA loans included in commercial business loans held-for-sale, respectively, resulting in gross gains of $870,000 and gross losses of $98,000.

During the three and nine months ended September 30, 2026, the Company didnot purchase any loans outside of the Northfield acquisition. During the nine months ended September 30, 2025, the Company purchased $130.9 million in equipment finance loans, included in commercial business loans and $20.0 million in construction loan participations were also purchased from third parties. During the three months ended September 30, 2025, no loans were purchased by the Company.

The Company has entered into guarantor swaps with Freddie Mac which results in improved liquidity. During the three and nine months ended September 30, 2026, no loans were exchanged for Freddie Mac mortgage participation certificates. During the three and nine months ended September 30, 2025, the Company exchanged $6.1 million and $13.3 million, respectively, of loans for Freddie Mac mortgage participation certificates, resulting in gross gains of $59,000 and $129,000, respectively, andno gross losses. The Company retained the servicing of these loans.

At September 30, 2026 and December 31, 2025, the carrying value of loans serviced by the Company for investors was $463.0 million and $494.8 million, respectively. These loans are not included in the Consolidated Statements of Financial Condition.

The following tables summarize the aging of loans receivable by portfolio segment, including non-accrual loans and excluding PCD loans at September 30, 2026 and December 31, 2025:

The Company considers a loan to be delinquent when we have not received a payment within 30 days of its contractual due date, or when the Company does not expect to receive all principal and interest payments owed substantially in accordance with the terms of the loan agreement, regardless of the past due status. Non-accruing loans are returned to accrual status after there has been a sustained period of repayment performance and both principal and interest are deemed collectible. The Company identifies loans that may need to be charged-off as a loss by reviewing all delinquent loans, classified loans and other loans for which management may have concerns about collectability.

At September 30, 2026 and December 31, 2025, non-accrual loans totaled $36.5 million and $38.0 million, respectively. Included in non-accrual loans at September 30, 2026 and December 31, 2025, are 34 and 38 loans totaling $11.8 million and $10.4 million, respectively, which are less than 90 days in arrears.

At September 30, 2026 and December 31, 2025, there wereno loans past due 90 days or more still accruing interest.

PCD loans are loans acquired at a discount primarily due to deteriorated credit quality. These loans were initially recorded at fair value at acquisition, based upon the present value of expected future cash flows, with no related provision for credit losses. Loans acquired in a business combination are recorded in accordance with ASC Topic 326, which requires loans as of the acquisition date, which have experienced a more than insignificant deterioration in credit quality since origination, to be classified as PCD loans.

At September 30, 2026, the remaining balance of PCD loans acquired in the Northfield acquisition totaled $153.6 million. At September 30, 2026 and December 31, 2025, PCD loans acquired in the Stewardship Financial Corporation ("Stewardship") acquisition totaled $1.0 million for both periods, PCD loans acquired in the Freehold Bank acquisition totaled $33,000 and $44,000, respectively, and PCD loans acquired in the RSI Bank acquisition totaled $8.0 million and $8.3 million, respectively, PCD loans acquired in conjunction with the purchase of equipment finance loans purchased in 2025, totaled $411,000 and $1.0 million, respectively. Charge-offs related to these purchased loans totaled $3.2 million during the year ended December 31, 2025.

We may obtain physical possession of real estate collateralizing a residential mortgage loan via foreclosure. At both September 30, 2026 and December 31, 2025, the Company heldno real estate owned. During the three months ended September 30, 2026, the Company sold real estate owned with a carrying value of $5.9 million acquired through foreclosure in March 2026 resulting in a realized loss of $1.8 million. At September 30, 2026, we hadnine residential mortgage loans with carrying values totaling $2.9 million andtwo home equity loans with carrying values totaling $69,000, collateralized by residential real estate, which were in the process of foreclosure. At December 31, 2025, we hadnine residential mortgage loans with carrying values totaling $2.5 million andfour home equity loans with carrying value totaling $585,000, collateralized by residential real estate, which were in the process of foreclosure.

The balance of the allowance for credit losses is based on an expected loss methodology, referred to as the "CECL" methodology. The loan portfolio segmentation includes seven portfolio segments taking into consideration common loan attributes and risk characteristics, as well as historical reporting metrics and data availability. Accrued interest receivable on loans receivable is reported as a component of accrued interest receivable in the Consolidated Statement of Financial Condition, which totaled $51.9 million at September 30, 2026 and $34.7 million at December 31, 2025, and is excluded from the estimate of allowance for credit losses.

The determination of the allowance for credit losses (“ACL”) on loans is considered a critical accounting estimate by management because of the high degree of judgment involved in determining qualitative loss factors, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment. The ACL is maintained at a level management considers adequate to provide for estimated losses and impairment based upon an evaluation of known and inherent risk in the loan portfolio. The ACL consists of two elements: (1) identification of loans that must be individually analyzed for impairment and (2) establishment of an ACL for loans collectively analyzed.

Portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Management developed segments for estimating losses based on the type of borrower and collateral which is generally based upon federal call report segmentation. The segments have been combined, or sub-segments have been added as needed to ensure loans of similar risk profiles are appropriately pooled.

We maintain a loan review system that provides a periodic review of the loan portfolio and the identification of individually analyzed loans. The ACL for individually analyzed loans is based on the fair value of collateral or cash flows. While management uses current information available to make such evaluations, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations.

The ACL quantitative allowance for each segment is measured using a discounted cash flow methodology incorporating an econometric, probability of default (“PD”) and loss given default (“LGD”) with distinct segment-specific multi-variate regression models applied. Expected credit losses are estimated over the life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for the modeled cash flows, adjusted for model defaults and expected prepayments and discounted at the loan-level effective interest rate. The contractual term excludes expected extensions, renewals, and modifications.

Management estimates the ACL using relevant and reliable information from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience for both the Company and its segment-specific peers provides the basis for the estimate of expected credit losses. Credit losses over a defined period are converted to PD rate curves through the use of segment-specific LGD risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviates from that of the wider industry. The historical PD curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.

Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using a single economic forecast of macroeconomic variables (i.e., unemployment, gross domestic product, vacancy, and home price index). This forecast is applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model reverts to long-term average historical loss rates using a straight-line, time-based methodology. The Company's current forecast period is six quarters, with a four-quarter reversion period to long-term average historical loss rates.

After quantitative considerations, management applies additional qualitative adjustments that consider the expected impact of certain factors not fully captured in the quantitative reserve. Qualitative adjustments include but are not limited to concentrations of large loan balances, delinquency trends, change in collateral values within segments, and other considerations.

The ACL is established through the provision for credit losses that are charged to income, which is based upon an evaluation of estimated losses in the current loan portfolio, including the evaluation of individually analyzed loans. Charge-offs against the ACL are taken on loans where management determines that the collection of loan principal and interest is unlikely. Recoveries made on loans that have been charged-off are credited to the ACL. Although we believe we have established and maintained the ACL on loans at appropriate levels, changes in reserves may be necessary if actual economic and other conditions differ substantially from the forecast used in estimating the ACL.

Our financial results are affected by the changes in and the level of the ACL. This process involves our analysis of internal and external variables, and it requires that we exercise judgment to estimate an appropriate ACL. As a result of the uncertainty associated with this subjectivity, we cannot assure the precision of the amount reserved should we experience sizable loan losses in any particular period and/or significant changes in assumptions or economic conditions. We believe the primary risks inherent in the portfolio are a general decline in the economy, a decline in real estate market values, rising unemployment, increasing vacancy rates, and increases in interest rates in the absence of economic improvement or any other such factors. Any one or a combination of these events may adversely affect a borrower's ability to repay its loan, resulting in increased delinquencies and loan losses. Accordingly, we have recorded loan credit losses at a level which is estimated to represent the current risk in its loan portfolio.

For our non-performing loans, the allowance is determined on an individual basis using the present value of expected cash flows, or for collateral dependent loans, the fair value of the collateral less estimated costs to sell. We continue to assess the collateral of loans and update our appraisals on these loans on an annual basis. To the extent the property values decline, there could be additional losses on these non-performing assets, which may be material. Management considered these market conditions in deriving the estimated ACL. Should economic difficulties occur, the ultimate amount of loss could vary from our current estimate.

The following tables summarize loans receivable (including PCD loans) and allowance for credit losses by portfolio segment and impairment method at September 30, 2026 and December 31, 2025:

Modifications made to borrowers experiencing financial difficulty may include principal or interest forgiveness, forbearance, interest rate reductions, term extensions, or a combination of these events intended to minimize economic loss and to avoid foreclosure or repossession of collateral.

The following tables presents the modifications of loans to borrowers experiencing financial difficulty that were modified

during the three and nine months ended September 30, 2026 and 2025:

The following tables describe the types of modifications of loans to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2026 and 2025:

The Company closely monitors the performance of modifications of loans to borrowers experiencing financial difficulty to understand the effectiveness of these modification efforts. The Company did not extend any commitment to lend additional funds to borrowers experiencing financial difficulty whose loans had been modified during the three and nine months ended September 30, 2026 and 2025.

The following tables present the aging analysis of modifications of loans to borrowers experiencing financial difficulty at September 30, 2026 and December 31, 2025:

The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2026 and 2025 are as follows:

The following tables present individually analyzed loans by segment, excluding PCD loans, at September 30, 2026 and December 31, 2025:

The following table presents interest income recognized for individually analyzed loans by loan segment, excluding PCD loans, for the three and nine months ended September 30, 2026 and 2025:

Management prepares an analysis each quarter that categorizes the entire loan portfolio by certain risk characteristics such as loan type (residential mortgage, commercial mortgage, construction, commercial business, etc.) and loan risk rating. The categorization of loans into risk categories is based upon relevant information about the borrower's ability to service their debt.

The Company utilizes a risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4w, with a rating established for loans with minimal risk. Loans rated 4w are watch loans, which may have a potential concern that warrants increased oversight and tracking by management. We enhanced our level of scrutiny and focus regarding documentation related to credit risk rating benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, and funded cash reserves. Other factors such as guarantees, market strength and remaining loan term and borrower equity are also reviewed and are factored into determining the credit risk rating assigned to each loan. Loans that are deemed to be of “questionable quality” are rated 5 (Special Mention) or 6 (Substandard). Loans with adverse classifications are rated 7 (Doubtful) or 8 (Loss). The risk ratings are also confirmed through periodic loan review examinations which are currently performed by both an independent third-party and the Company's credit risk review department. Results from examinations are presented to the Audit Committee of the Board of Directors.

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating, excluding PCD loans, at September 30, 2026 and December 31, 2025:

The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancellable. To arrive at that reserve, the percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. The allowance for credit losses for off-balance-sheet exposures is reported in other liabilities in the Consolidated Statements of Financial Condition. The liability represents an estimate of expected credit losses arising from off-balance-sheet exposures such as unfunded commitments. At September 30, 2026 and December 31, 2025, the balance of the allowance for credit losses on unfunded commitments, included in other liabilities, totaled $4.7 million and $3.9 million, respectively. The Company recorded a (reversal of) provision for credit losses on unfunded commitments, included in other non-interest expense in the Consolidated Statements of Income of $(638,000) and $381,000, and $354,000 and $110,000, respectively, during the three and nine months ended September 30, 2026 and 2025, respectively.

The following table presents the activity in the allowance for credit losses on off-balance-sheet exposures for the three and nine months ended September 30, 2026 and 2025:

10. Leases

The Company leases real estate property for branches and office space. At September 30, 2026 and December 31, 2025, all of the Company's leases are classified as operating leases.

The Company determines if an arrangement is a lease at inception. ASC Topic 842 requires lessees to recognize a right-of-use asset and a lease liability, measured at the present value of the future minimum lease payments, at the lease commencement date. The calculated amount of the right-of-use asset and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. At September 30, 2026 and December 31, 2025, the weighted average remaining lease term for operating leases was 7.8 years and 5.5 years, respectively, and the weighted average discount rate used in the measurement of operating lease liabilities was 4.38% and 3.39%, respectively.

The Company accounts for the lease and non-lease components separately since such amounts are readily determinable under the Company's lease contracts. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Variable lease payments include common area maintenance charges, real estate taxes, repairs and maintenance costs and utilities. Operating and variable lease expenses are recorded in occupancy expense in the Consolidated Statements of Income. During the three and nine months ended September 30, 2026 and 2025, operating and variable lease expenses totaled approximately $1.2 million and $821,000 and $3.1 million and $2.4 million, respectively.

There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the three and nine months ended September 30, 2026 and 2025. At September 30, 2026, the Company had no leases which had not yet commenced.

During the three and nine months ended September 30, 2026, the Company added 29 new obligations related to the Northfield merger. The Company recorded a $28.5 million right-of-use asset and lease liability for these lease obligations.

10. Leases (continued)

The following table summarizes lease payment obligations for each of the next five years and thereafter as follows:

11. Deposits

Deposits are summarized as follows:

The aggregate amount of certificates of deposit that meet or exceed $250,000 totaled approximately $990.3 million and $723.3 million at September 30, 2026 and December 31, 2025, respectively. Interest expense on deposits for the three months ended September 30, 2026 and 2025 totaled $62.8 million and $49.6 million, respectively. Interest expense on deposits for the nine months ended September 30, 2026 and 2025 totaled $155.3 million and $149.1 million, respectively.

Within total deposits, brokered deposits totaled $48.9 million and $46.2 million at September 30, 2026 and December 31, 2025. The Company also offers its customers reciprocal deposit arrangements, which provide FDIC deposit insurance for accounts that would otherwise exceed deposit insurance limits, which totaled $228.9 million and $262.1 million as of September 30, 2026 and December 31, 2025, respectively.

11. Deposits (continued)

Scheduled maturities of certificates of deposit accounts at September 30, 2026 and December 31, 2025 are summarized as follows:

12. Stock Based Compensation

At September 30, 2026 there were 307,062 shares remaining available for future restricted stock awards and 1,787,192 shares remaining available for future stock option grants under the Columbia Financial, Inc. 2019 Equity Incentive Plan ("2019 Plan").

Restricted shares granted under the 2019 Plan generally vest in equal installments, over performance or service periods generally ranging fromone year tothree years, beginningone year from the date of grant. A portion of restricted shares awarded are performance awards, which vest upon the satisfactory attainment of certain corporate financial targets. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite performance or service period. During the three months ended September 30, 2026 and 2025, approximately $505,000 and $532,000, respectively, in expense was recognized in regard to these awards. During the nine months ended September 30, 2026 and 2025, approximately $1.5 million and $1.9 million, respectively, in expense was recognized in regard to these awards. The expected future compensation expense related to the 903,631 non-vested restricted shares outstanding at September 30, 2026 is approximately $2.5 million over a weighted average period of 1.8 years.

The following is a summary of the Company's restricted stock activity during the three and nine months ended September 30, 2026 and 2025:

The fair value of stock option grants is determined through the application of the Black-Scholes model, incorporating the following variables. The expected life of the options represents the term over which stock options are anticipated to remain outstanding, and is estimated by means of the simplified approach, which presupposes that all outstanding options will be exercised at the midpoint between the vesting date and the full contractual term. The risk-free rate of return is derived from the prevailing rates, on the grant date, of a U.S. Treasury Note bearing a term equivalent to the expected option life. The expected volatility is established on the basis of the historical daily stock prices of the Company's common stock. The actual dividend rate paid on the Company's common stock serves as the basis for the applicable dividend rate assumption.

Management recognizes expense for the fair value of these awards on a straight-line basis over the requisite service period. During the three months ended September 30, 2026 and 2025, approximately $593,000 and $532,000 in expense was recognized in regard to these awards. During the nine months ended September 30, 2026 and 2025, approximately $1.7 million and $1.9 million, respectively, in expense was recognized in regard to these awards. The expected future compensation expense related to the 1,707,980 non-vested options outstanding at September 30, 2026 is $3.9 million over a weighted average period of 2.0 years.

The following is a summary of the Company's option activity during the three and nine months ended September 30, 2026 and 2025:

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, the difference between the Company's closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options.

During the three and nine months ended September 30, 2026,43,326 and 326,848 options were exercised. There wereno options exercised during the three and nine months ended September 30, 2025. During the three and nine months ended September 30, 2026, the aggregate intrinsic value of options exercised were approximately $139,000 and $468,000, respectively.

Through its acquisition of Northfield Bank, the Company also acquired 114,000 outstanding and exercisable stock options with exercise prices ranging from $11.85 - $12.94 which expire through November 1, 2027. During the three and nine months ended September 30, 2026, no expense was recognized related to these awards.

Through its acquisition of Northfield Bank, the Company also acquired 213,548 cash-settled restricted stock units. Of these grants 18,735 vestone year form the date of grant and 194,813 vest in equal installments over athree-year period beginning one year from the grant date of February 4, 2026. As the awards will be settled in cash, they are classified as liabilities on the consolidated statements of financial condition. During both the three and nine months ended September 30, 2026, the Company recorded compensation expense of $146,000 related to these awards. As of September 30, 2026, there was $1.7 million of unrecognized compensation costs related to non-vested stock units. That cost is expected to be recognized over a weighted average period of 2.2 years.

Phantom Stock Plan

On January 28, 2026, the Board of Directors of the Company adopted the Columbia Financial, Inc. 2026 Phantom Stock Plan (the “Phantom Stock Plan”). The purpose of the Phantom Stock Plan is to promote the long-term financial success of the Company by providing a means to attract, retain and reward individuals who contribute to the Company’s success and to further align their interests with those of the Company.

Under the terms of the Phantom Stock Plan, eligible employees and directors of the Company may be granted phantom stock units, which confer to the recipient the benefits of owning shares of the Company’s common stock without the actual ownership or transfer of shares. Each phantom stock unit entitles the participant to receive, upon the vesting of the phantom stock unit, a cash amount equal to the fair market value of a share of Company common stock as of the vesting date. “Fair market value” is defined as the last sale price reported on the Nasdaq Stock Market, or other national securities exchange on which shares of the Company’s common stock are traded, as of the vesting date (or, if the Company’s common stock is not listed on a national securities exchange on the vesting date, as otherwise determined by the Compensation Committee of the Company’s Board of Directors in accordance with the terms of the Phantom Stock Plan). Phantom stock units may be granted as performance awards, and awards under the Phantom Stock Plan are subject to the terms and conditions of the Company’s LTIP in effect for the applicable plan year.

The Phantom Stock Plan is administered by the Compensation Committee of the Company’s Board of Directors, which will have the discretion and authority to interpret the Phantom Stock Plan and make all determinations that may be necessary or advisable for the administration of the Phantom Stock Plan. The aggregate number of phantom stock units available for awards granted under the Phantom Stock Plan at any time for each plan year will be determined from time to time by the Compensation Committee based on the LTIP for the applicable plan year.

The Company granted 176,349 phantom stock units under the Phantom Stock Plan in March 2026 of which 171,588 remain outstanding at September 30, 2026. Phantom stock units are recorded in compensation and employee benefits expense based on the fair value of the units on the balance sheet date. The fair value of these awards is updated at each balance sheet date and changes in the fair value of the vested portions of the awards are recorded as increases or decreases to compensation expense within compensation and employee benefits in the Consolidated Statements of Income. All of the outstanding phantom stock units at September 30, 2026 met the criteria to be treated under liability classification in accordance with ASC 718, given that these awards will be settled in cash on the vesting date.

Compensation expense for the phantom stock units is based on the fair value of the units as of the balance sheet date as further discussed above, and such costs are recognized ratably over the service period of the awards. As the fair value of liability awards is required to be re-measured each period end, stock compensation expense amounts recognized in future periods for these awards will vary. During the three and nine months ended September 30, 2026, approximately $197,000 and $378,000 in expense was recognized in regard to these awards. The estimated future cash payments of these awards are presented as liabilities within accrued expenses and other liabilities in the Consolidated Statement of Condition. As of September 30, 2026, there was $1.5 million of unrecognized compensation costs related to non-vested phantom stock units. That cost is expected to be recognized over a weighted average period of 2.4 years.

13. Components of Net Periodic Benefit Cost

Pension Plan, Retirement Income Maintenance Plan (the "RIM Plan") Post-retirement Plan, and Split-Dollar Life Insurance Plans

The Company maintains a single employer, tax-qualified defined benefit pension plan (the "Pension Plan") which covers full-time employees hired prior to October 1, 2018, that satisfied the Pension Plan's eligibility requirements. The benefits are based on years of service and the employee's average compensation for the highest five consecutive years of employment.

The Company's policy is to fund at least the minimum contribution required by the Employee Retirement Income Security Act of 1974. GAAP requires an employer to: (a) recognize in its statement of financial position the over-funded or under-funded status of a defined benefit post-retirement plan measured as the difference between the fair value of plan assets and the benefit obligation; (b) measure a plan’s assets and its obligations that determine its funded status at the end of the employer’s fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income (loss), net of tax, the actuarial gains and losses and the

prior service costs and credits that arise during the period. The assets of the plan are primarily invested in fixed income and equity funds.

The Company also maintains a Retirement Income Maintenance Plan (the "RIM Plan") which is a non-qualified defined benefit plan which provides benefits to all employees of the Company if their benefits under the Pension Plan are limited by Internal Revenue Code Sections 415 and 401(a)(17).

In addition, the Company provides certain health care and life insurance benefits to eligible retired employees under a Post-retirement Plan. The Company accrues the cost of retiree health care and other benefits during the employee's period of active service. Effective January 1, 2019, the Post-retirement Plan was closed to new hires.

The Company also provides life insurance benefits to eligible employees under an endorsement split-dollar life insurance program. The Company recognizes a liability for future benefits applicable to endorsement split-dollar life insurance arrangements that provide death benefits post-retirement. Through its mergers, the Company recognized additional liability for future benefits applicable to endorsement split-dollar life insurance arrangements that provide death benefits post-retirement under the programs of certain other previously acquired banks.

Through the acquisition of Northfield, the Company acquired a post-retirement medical and life insurance plan to a limited number of retired individuals, and retiree life insurance benefits to qualified employees, up to certain limits, along with a split-dollar life insurance plan which are not included in the tables below.

13. Components of Net Periodic Benefit Cost (continued)

Pension Plan, Retirement Income Maintenance Plan (the "RIM Plan") Post-retirement Plan, and Split-Dollar Life Insurance Plans (continued)

Net periodic (income) benefit cost for the Pension Plan, RIM Plan, Post-retirement Plan and Split-Dollar Life Insurance plan benefits for the three and nine months ended September 30, 2026 and 2025, includes the following components:

13. Components of Net Periodic Benefit Cost (continued)

Pension Plan, Retirement Income Maintenance Plan (the "RIM Plan") Post-retirement Plan, and Split-Dollar Life Insurance Plans (continued)

For the three and nine months ended September 30, 2026 and 2025, no contributions were made to the Pension Plan. The net periodic (income) cost for pension benefits, other post-retirement and split-dollar life insurance benefits for the three and nine months ended September 30, 2026 was calculated using the most recent available benefit valuations.

14. Fair Value Measurements

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. Where quoted market values in an active market are not readily available, the Company utilizes various valuation techniques to estimate fair value.

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access on the measurement date.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in markets that are active or not active, or inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3: Prices or valuation techniques that require unobservable inputs that are both significant to the fair value measurement and unobservable (i.e., supported by minimal or no market activity). Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The methods described below were used to measure fair value of financial instruments as reflected in the tables below on a recurring basis at September 30, 2026 and December 31, 2025.

Debt Securities Available for Sale, at Fair Value

For debt securities available for sale, fair value was estimated using a market approach. The majority of these securities are fixed income instruments that are not quoted on an exchange but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations, matrix pricing and discounted cash flow pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to a benchmark or to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. Discounted cash flows, a Level 3 input, is estimated by discounting the expected future cash flows using the current rates for securities with similar credit ratings and similar remaining maturities. As the Company is responsible for the determination of fair value, it performs quarterly analysis on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to assess the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in an adjustment in the prices obtained from the pricing service. The Company may hold debt instruments issued by the U.S. government and U.S. government-sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. The Company classifies the estimated fair value of its loan portfolio as Level 3.

Equity Securities, at Fair Value

The Company holds equity securities that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. A trust preferred security that is not traded in an active market and Federal Home Loan Mortgage Corporation ("FHLMC") and Federal National Mortgage Association ("FNMA") preferred stock are considered Level 2 instruments. In addition, Level 2 instruments include Atlantic Community Bankers Bank ("ACCB") stock, which is based on redemption at par value and can only be sold to the issuing ACBB or another institution that holds ACBB stock.

Loans held-for-sale, at Fair Value

Loans held-for-sale are carried at the lower of unpaid principal balance, net, or estimated fair values based on bid quotations from secondary markets.

Derivatives

The Company records all derivatives included in other assets and liabilities on the Consolidated Statements of Financial Condition at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. See note 15 for disclosures related to the accounting treatment for derivatives.

The fair value of the Company's derivatives is determined by using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs.

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2026 and December 31, 2025, by level within the fair value hierarchy:

The table below provides activity of assets reported as Level 3 during the three and nine months ended September 30, 2026 and 2025:

The fair value of investments placed in Level 3 is estimated by discounting the expected future cash flows using reasonably available current rates for comparable new issue securities with similar structure, including original maturity, call date, and assumptions about risk. Discounted cash flow estimated valuations are subsequently validated against comparable structures as an approximation of value.

Expected cash flows were projected based on contractual cash flows. At September 30, 2026, two private placement corporate debt securities classified as available for sale, andsix private placement municipal obligations classified as available for sale were included in Level 3 assets. At December 31, 2025, two private placement corporate debt securities classified as available for sale, andone private placement municipal obligation classified as available for sale were included in Level 3 assets.

There wereno transfers to Level 3 assets during the three and nine months ended September 30, 2026. There wasone transfer to Level 3 assets during both the three and nine months ended September 30, 2025

At September 30, 2026, private placement corporate debt security cash flows were discounted to a market yield and weighted average of 9.38%, and the cash flows for the private placement municipal obligation was discounted to a market yield and weighted average of 4.20%.

The period end valuations were supported by an analysis prepared by an independent third party market participant and approved by management.

Assets Measured at Fair Value on a Non-Recurring Basis

The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis at September 30, 2026 and December 31, 2025.

Individually Analyzed Collateral Dependent Loans/Impaired Loans

The fair value of collateral dependent loans that are individually analyzed or were previously deemed impaired is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral if the loan is collateral dependent. For individually analyzed loans measured for impairment based on the fair value of the underlying collateral, fair value was estimated using a market approach. The Company measures the fair value of collateral underlying impaired loans primarily through obtaining independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case-by-case basis, to comparable assets based on the appraisers’ market knowledge and experience, as well as adjustments for estimated costs to sell between 6% and 8%. For non-collateral dependent loans, management estimates fair value using discounted cash flows based on inputs that are largely unobservable. The Company classifies these loans as Level 3 within the fair value hierarchy.

Other Real Estate Owned

Other real estate owned is initially recorded at the lower of the recorded investment in the loan at the time of foreclosure or at fair value, less estimated costs to sell, when acquired. Fair value is generally based on an independent appraisal which includes adjustments to comparable assets based on the appraisers' market knowledge and experience. Subsequent write-downs in the value of other real estate owned is recorded through expense as incurred. Other real estate owned is considered Level 3 within the fair value hierarchy.

Mortgage Servicing Rights, Net ("MSR's")

Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSR's is obtained through an analysis of future cash flows, incorporating assumptions that market participants would use in determining fair value including market discount rates, prepayments speeds, servicing income, servicing costs, default rates and other market driven data, including the market's perception of future interest rate movements. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. A significant degree of judgment is involved in valuing the mortgage servicing rights using Level 3 inputs. The use of different assumptions could have a significant effect on this fair value estimate.

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values on a non-recurring basis at September 30, 2026 and December 31, 2025, by level within the fair value hierarchy:

The following table presents information for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2026 and December 31, 2025:

Other Fair Value Disclosures

The Company is required to disclose estimated fair value of financial instruments, both assets and liabilities on and off the balance sheet, for which it is practicable to estimate fair value. A description of the valuation methodologies used for those assets and liabilities not recorded at fair value on a recurring or non-recurring basis are set forth below.

Cash and Cash Equivalents

For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value due to their nature and short-term maturities.

Debt Securities Held to Maturity

For debt securities held to maturity, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to benchmark or to compare securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As the Company is responsible for the determination of fair value, it performs quarterly analysis on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to assess the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in an adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S. government and U.S. government sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs within the fair value hierarchy.

Federal Home Loan Bank Stock ("FHLB") and Federal Reserve Bank ("FRB") Stock

The fair value of FHLB stock is based on redemption at par value and can only be sold to the issuing FHLB, to other FHLBs, or to other member banks. The Bank is also a member of the Federal Reserve Bank of New York and is required to own a certain amount of FRB stock. As such, the Company's FHLB and FRB stocks are recorded at cost, or par value, and are evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company classifies the estimated fair value as Level 2 within the fair value hierarchy.

Loans Receivable

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial mortgage, residential mortgage, commercial, construction, consumer, and other. Each loan category is further segmented into fixed and adjustable rate interest terms and into performing and non-performing categories.

The fair value of performing loans was estimated using a combination of techniques, including a discounted cash flow model that utilizes a discount rate that reflects the Company's current pricing for loans with similar characteristics and remaining maturity, adjusted by an amount for estimated credit losses inherent in the portfolio at the balance sheet date. The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Company classifies the estimated fair value of its loan portfolio as Level 3.

The fair value for significant non-performing loans was based on recent external appraisals of collateral securing such loans, adjusted for the timing of anticipated cash flows. The Company classifies the estimated fair value of its non-performing loan portfolio as Level 3.

Deposits

The fair value of deposits with no stated maturity, such as demand, money market, and savings and club deposits are payable on demand at each reporting date and classified as Level 2. The estimated fair value of certificates of deposit was based on the discounted value of contractual cash flows. The discount rate was estimated using the Company’s current rates offered for deposits with similar remaining maturities. The Company classifies the estimated fair value of its certificates of deposit portfolio as Level 2.

Borrowings

The fair value of borrowings was estimated by discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy.

Commitments to Extend Credit and Letters of Credit

The fair value of commitments to extend credit and letters of credit was estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counter-parties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value estimates of commitments to extend credit and letters of credit are deemed immaterial.

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2026 and December 31, 2025:

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because limited markets exist for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include goodwill and intangible assets, deferred tax assets and liabilities, office properties and equipment, and bank-owned life insurance.

15. Other Comprehensive Income (Loss)

The following tables present the components of other comprehensive income (loss), both gross and net of tax, for the three and nine months ended September 30, 2026 and 2025:

The following tables present the changes in the components of accumulated other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2026 and 2025:

The following tables reflect amounts reclassified from accumulated other comprehensive income (loss) to the Consolidated Statements of Income and the affected line item in the statement where net income is presented for the three and nine months ended September 30, 2026 and 2025:

16. Derivatives and Hedging Activities

The Company uses derivative financial instruments as components of its market risk management, principally to manage interest rate risk. Certain derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes. All derivatives are recognized as either assets or liabilities in the Consolidated Statements of Financial Condition, reported at fair value and presented on a gross basis. Until a derivative is settled, a favorable change in fair value results in an unrealized gain that is recognized as an asset, while an unfavorable change in fair value results in an unrealized loss that is recognized as a liability.

The Company generally applies hedge accounting to its derivatives used for market risk management purposes. Hedge accounting is permitted only if specific criteria are met, including a requirement that a highly effective relationship exists between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. Changes in the fair value of effective fair value hedges are recognized in current earnings (with the change in fair value of the hedged asset or liability also recognized in earnings). Changes in the fair value of effective cash flow hedges are recognized in other comprehensive income (loss) until earnings are affected by the variability in cash flows of the designated hedged item. Ineffective portions of hedge results are recognized in current earnings. Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings.

The Company formally documents at inception all relationships between the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. This process includes linking all derivatives that are designated as hedges to specific assets and liabilities, or to specific firm commitments. The Company also formally assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of the hedged items. If it is determined that a derivative is not highly effective or has ceased to be a highly effective hedge, the Company would discontinue hedge accounting prospectively. Gains or losses resulting from the termination of a derivative accounted for as a cash flow hedge remain in other comprehensive income (loss) and is (accreted) amortized to earnings over the remaining period of the former hedging relationship.

Certain derivative financial instruments are offered to certain commercial banking customers to manage their risk of exposure and risk management strategies. These derivative instruments consist primarily of currency forward contracts and interest rate swap contracts. The risks associated with these transactions is mitigated by simultaneously entering into similar transactions having essentially offsetting terms with a third party. In addition, the Company executes interest rate swaps with third parties in order to hedge the interest rate risk of short-term FHLB advances.

Interest Rate Swaps. At September 30, 2026 and December 31, 2025, the Company had 98 and 92 interest rate swaps in place with commercial banking customers executed by offsetting interest rate swaps with third parties, with aggregated notional amounts of $400.5 million and $387.2 million, respectively. These derivatives are not designated as hedges and are not speculative. These interest rate swaps do not meet hedge accounting requirements.

At September 30, 2026 and December 31, 2025, the Company had 30 and 33 interest rate swaps with notional amounts of $368.7 million and $393.7 million, respectively, hedging certain FHLB advances. These interest rate swaps meet the cash flow hedge accounting requirements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counter-party in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount.

At September 30, 2026 and December 31, 2025, the Company hadno interest rate fair value swaps. The Company is exposed to changes in the fair value of certain of its fixed-rate pools of assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate, the Secured Overnight Financing Rate ("SOFR").

16. Derivatives and Hedging Activities (continued)

Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount.

For the three and nine months ended September 30, 2026, and the nine months ended September 30, 2025, there wasno hedge ineffectiveness associated with these contracts. For the three months ended September 30, 2025, hedge ineffectiveness associated with these contracts totaled $1,000.

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Statements of Financial Condition at September 30, 2026 and December 31, 2025:

For the three months ended September 30, 2026 and 2025, net gains (losses) of $177,000 and $(1,000), respectively, were recorded for changes in fair value of interest rate swaps with third parties. For the nine months ended September 30, 2026 and 2025, gains (losses) of $189,000 and $(198,000), respectively, were recorded for changes in fair value of interest rate swaps with third parties.

At September 30, 2026 and December 31, 2025, accrued interest (payable) receivable was $(135,000) and $13,000, respectively.

The Company has agreements with counterparties that contain a provision that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of its derivative obligations.

At September 30, 2026, the termination value of derivatives in a net asset position, which includes accrued interest, was $3.5 million. The Company normally has collateral posting thresholds with certain of its derivative counterparties, but as of September 30, 2026 had no required posted collateral against its obligations under these agreements.

17. Segment Reporting

The Company's reportable segment is determined by the President, Chief Executive Officer ("CEO"), who is designated the chief operating decision maker ("CODM"), based upon information provided about the Company's products and services offered, which primarily consists of banking products. The segment is also distinguished by the level of information provided by the CODM, who uses such information to review the performance of various components of the business, which are then aggregated if operating performance, products and services, and customers are similar. The CODM evaluates the financial performance of the Company's business components including revenue streams, significant expenses and budget to actual results in assessing the Company's segments, and in the determination of allocating resources. The CODM uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CODM utilizes consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with the monitoring of budget to actual results are used in assessing performance and in establishing compensation. Loans, investments, and deposits provide the revenue in banking operations. Interest expense, provision for credit losses, and payroll provide the significant expenses in banking operations. All operations are domestic.

Accounting policies for segments are the same as those described in Note 1. Our segment assets represent our total assets as presented on the Consolidated Statements of Financial Condition. Our segment revenues and expenses are presented on the Consolidated Statements of Income.

18. Revenue Recognition

The Company's revenue includes net interest income on financial instruments and non-interest (loss) income. Most of the Company's revenue is not within the scope of Accounting Standards Codification ASC Topic 606 which does not apply to revenue associated with financial instruments, including interest income on loans and securities, which comprise the majority of the Company's revenue. Revenue-generating activities that are within the scope of this guidance are components of non-interest (loss) income. These revenue streams can generally be classified as demand deposit account fees, title insurance fees, insurance agency income and other fees.

The following table presents non-interest (loss) income, segregated by revenue streams in-scope and out-of-scope of ASC Topic 606, for the three and nine months ended September 30, 2026 and 2025:

Demand deposit account fees include monthly maintenance fees and service charges. These fees are generally derived as a result of either transaction-based or serviced-based services. The Company's performance obligation for these services is generally satisfied, and revenue recognized, at the time the transaction is completed, or the service rendered. Fees for these services are generally received from the customer either at the time of the transaction or monthly.

Title insurance fees are generally recognized at the time the transaction closes or when the service is rendered.

18. Revenue Recognition (continued)

Columbia Insurance Services Inc. performs the function of an insurance intermediary, by introducing the policyholder and insurer for life and health, and property and casualty insurance, and is compensated by a commission fee for placement of an insurance policy. Commission and fees are generally recognized as of the effective date of the insurance policy. Commission revenues related to installment billings are recognized on the invoice date. Subsequent commission adjustments are recognized upon the receipt of notification from insurance companies concerning matters necessitating such adjustments.

Other non-interest income includes check printing fees, gift card fees, branch service fees, overdraft fees, account analysis fees, other deposit related fees, wealth management related fee income which includes annuity fees, brokerage commissions, and asset management fees. Wealth management related fee income represents fees earned from customers as consideration for asset management and investment advisory services provided by a third party. The Company's performance obligation is generally satisfied monthly, and the resulting fees are recognized monthly based upon the month-end market value of the assets under management and the applicable fee rate. The Company does not earn performance-based incentives. The Company's performance obligation for these transaction-based services are generally satisfied, and related revenue recognized, at the time the transaction closes or when the service is rendered or a point in time when the service is completed.

Also included in other fees are debit card and ATM fees which are transaction-based. Debit card revenue is primarily comprised of interchange fees earned when a customer's Company card is processed through a card payment network. ATM fees are largely generated when a Company cardholder uses a non-Company ATM, or a non-Company cardholder uses a Company ATM. The Company's performance obligation for these services is satisfied when the service is rendered. Payment is generally received at time of transaction or monthly.

Out-of-scope non-interest (loss) income primarily consists of income from bank-owned life insurance, loan prepayment and servicing fees, net fees on loan level swaps, gains and losses on the sale of loans, securities and real estate owned, bargain purchase gain, credit card interchange income and changes in the fair value of equity securities. None of these revenue streams are subject to the requirements of ASC Topic 606.

19. Subsequent Events

The Company has evaluated events subsequent to September 30, 2026 and through the financial statement issuance date of November 9, 2026, and has concluded that, except as noted below, no material events occurred that would require disclosure.

Declaration of Quarterly Cash Dividend

On October 29, 2026, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.05 per share to be paid on November 25, 2026, to stockholders of record as of November 10, 2026.