UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OF 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026

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

Commission File Number: 0-25165

GREENE COUNTY BANCORP, INC.

(Exact Name of Registrant as Specified in its Charter)


United States		14-1809721
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)


302 Main Street, Catskill, New York		12414
(Address of principal executive office)		(Zip code)

Registrant's telephone number, including area code: (518) 943-2600

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


Title of class	Trading symbol	Name of exchange on which registered
Common Stock, $0.10 par value	GCBC	The Nasdaq Stock Market

Securities Registered Pursuant to Section 12(g) of the Act:

None

(Title of Class)

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

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

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


Large accelerated filer	☐	Accelerated filer	☒	Emerging Growth Company ☐

Non-accelerated filer	☐	Smaller reporting company	☒

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

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

As of May 7, 2026, the registrant had 17,025,485 shares of common stock outstanding at $0.10 par value per share.


GREENE COUNTY BANCORP, INC.

	INDEX

PART I.	FINANCIAL INFORMATION
		Page
Item 1.	Financial Statements (unaudited)
	* Consolidated Statements of Financial Condition	3
	* Consolidated Statements of Income	4
	* Consolidated Statements of Comprehensive Income	5
	* Consolidated Statements of Changes in Shareholders’ Equity	6
	* Consolidated Statements of Cash Flows	7
	* Notes to Consolidated Financial Statements	8-32

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33-50

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	51

Item 4.	Controls and Procedures	51

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	51

Item 1A.	Risk Factors	51

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51

Item 3.	Defaults Upon Senior Securities	51

Item 4.	Mine Safety Disclosures	51

Item 5.	Other Information	52

Item 6.	Exhibits	52

	Signatures	53

Greene County Bancorp, Inc.

Consolidated Statements of Financial Condition

At March 31, 2026 and June 30, 2025

(Unaudited)

(In thousands, except share and per share amounts)


ASSETS		March 31, 2026			June 30, 2025
Cash and due from banks	$	10,509		$	12,788
Interest-bearing deposits		128,941			170,290
Total cash and cash equivalents		139,450			183,078

Long-term certificates of deposit		1,225			1,425
Securities available-for-sale, at fair value		370,201			356,062
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $550 and $548 at March 31, 2026 and June 30, 2025		814,314			776,147
Equity securities, at fair value		355			402
Federal Home Loan Bank stock, at cost		5,549			5,504

Loans receivable		1,747,703			1,627,406
Allowance for credit losses on loans		(21,778	)		(20,146	)
Net loans receivable		1,725,925			1,607,260

Premises and equipment, net		15,018			15,232
Bank-owned life insurance		68,174			59,795
Accrued interest receivable		20,070			16,381
Prepaid expenses and other assets		20,874			19,323
Total assets	$	3,181,155		$	3,040,609

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	109,085		$	110,163
Interest-bearing deposits		2,663,469			2,529,672
Total deposits		2,772,554			2,639,835

Borrowings, short-term		73,200			74,000
Borrowings, long-term		4,189			4,189
Subordinated notes payable, net		29,954			49,867
Accrued expenses and other liabilities		33,665			33,881
Total liabilities		2,913,562			2,801,772

SHAREHOLDERS' EQUITY
Preferred stock, Authorized - 1,000,000 shares; Issued - None		-			-
Common stock, par value $0.10 per share; Authorized - 36,000,000 shares; Issued – 17,222,680 shares at March 31, 2026 and June 30, 2025; Outstanding – 17,026,828 shares at March 31, 2026, and June 30, 2025		1,722			1,722
Additional paid-in capital		10,156			10,156
Retained earnings		267,819			241,403
Accumulated other comprehensive loss		(11,196	)		(13,536	)
Treasury stock, at cost 195,852 shares at March 31, 2026 and June 30, 2025		(908	)		(908	)
Total shareholders’ equity		267,593			238,837
Total liabilities and shareholders’ equity	$	3,181,155		$	3,040,609

See notes to consolidated financial statements

Greene County Bancorp, Inc.

Consolidated Statements of Income

For the Three and Nine Months Ended March 31, 2026 and 2025

(Unaudited)

(In thousands, except share and per share amounts)



		For the three months ended March 31,					For the nine months ended March 31,
		2026		2025			2026			2025
Interest income:
Loans	$	22,100	$	20,185		$	66,486		$	58,908
Investment securities - tax exempt		5,543		5,053			16,231			14,464
Investment securities - taxable		4,578		3,810			13,240			10,777
Interest-bearing deposits and federal funds sold		357		731			1,741			2,817
Total interest income		32,578		29,779			97,698			86,966

Interest expense:
Interest on deposits		11,975		12,999			39,263			41,543
Interest on borrowings		417		569			1,670			2,008
Total interest expense		12,392		13,568			40,933			43,551

Net interest income		20,186		16,211			56,765			43,415
Provision for credit losses		451		1,084			1,907			2,196
Net interest income after provision for credit losses		19,735		15,127			54,858			41,219

Noninterest income:
Service charges on deposit accounts		1,185		1,191			3,789			3,690
Debit card fees		1,178		1,146			3,381			3,310
Investment services		298		297			846			797
E-commerce fees		34		16			90			87
Bank-owned life insurance		708		625			2,034			1,910
Loss on sale of securities available-for-sale		-		(665	)		(576	)		(665	)
Other operating income		296		1,246			1,277			2,339
Total noninterest income		3,699		3,856			10,841			11,468

Noninterest expense:
Salaries and employee benefits		6,783		6,195			19,162			17,726
Occupancy expense		823		729			2,132			1,980
Equipment and furniture expense		173		226			592			569
Service and data processing fees		833		667			2,401			2,207
Computer software, supplies and support		543		427			1,541			1,186
Advertising and promotion		111		136			358			340
FDIC insurance premiums		373		353			1,110			1,022
Legal and professional fees		280		394			1,165			1,003
Other		1,356		915			3,334			2,945
Total noninterest expense		11,275		10,042			31,795			28,978

Income before provision for income taxes		12,159		8,941			33,904			23,709
Provision for income taxes		1,637		887			4,220			1,904
Net income	$	10,522	$	8,054			29,684		$	21,805

Basic and diluted earnings per share	$	0.62	$	0.47			1.74		$	1.28
Basic and diluted average shares outstanding		17,026,828		17,026,828			17,026,828			17,026,828

See notes to consolidated financial statements

Greene County Bancorp, Inc.

Consolidated Statements of Comprehensive Income

For the Three and Nine Months Ended March 31, 2026 and 2025

(Unaudited)

(In thousands)


	For the three months ended March 31,					For the nine months ended March 31,
		2026			2025		2026			2025
Net income	$	10,522		$	8,054	$	29,684		$	21,805
Other comprehensive income:
Unrealized holding (losses) gains on securities available-for-sale, gross		(359	)		3,760		2,049			6,172
Tax effect		(96	)		1,005		548			1,649
Unrealized holding (losses) gains on securities available-for-sale, net		(263	)		2,755		1,501			4,523

Reclassification adjustment for loss on sale of securities available-for-sale realized in net income, gross		-			665		576			665
Tax effect		-			178		154			178
Reclassification adjustment for loss on sale of securities available-for-sale realized in net income, net		-			487		422			487

Pension actuarial gain (loss), gross		335			-		(349	)		-
Tax effect		89			-		(94	)		-
Pension actuarial gain (loss), net		246			-		(255	)		-

Amortization of pension actuarial losses recognized in other expense, gross		713			-		918			-
Tax effect		191			-		246			-
Amortization of pension actuarial losses recognized in other expense, net		522			-		672			-

Total other comprehensive income, net of taxes		505			3,242		2,340			5,010

Comprehensive income	$	11,027		$	11,296		32,024		$	26,815

See notes to consolidated financial statements

Greene County Bancorp, Inc.

Consolidated Statements of Changes in Shareholders’ Equity

For the Three Months Ended March 31, 2026 and 2025

(Unaudited)

(In thousands)


		Common stock		Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total shareholders' equity
Balance at December 31, 2025	$	1,722	$	10,156	$	258,999		$	(11,701	)	$	(908	)	$	258,268
Dividends declared						(1,702	)								(1,702	)
Net income						10,522									10,522
Other comprehensive income, net of taxes									505						505
Balance at March 31, 2026	$	1,722	$	10,156	$	267,819		$	(11,196	)	$	(908	)	$	267,593


		Common stock		Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total shareholders' equity
Balance at December 31, 2024	$	1,722	$	10,156	$	225,421		$	(17,942	)	$	(908	)	$	218,449
Dividends declared						(702	)								(702	)
Net income						8,054									8,054
Other comprehensive income, net of taxes									3,242						3,242
Balance at March 31, 2025	$	1,722	$	10,156	$	232,773		$	(14,700	)	$	(908	)	$	229,043

Greene County Bancorp, Inc.

Consolidated Statements of Changes in Shareholders’ Equity

For the Nine Months Ended March 31, 2026 and 2025

(Unaudited)

(In thousands)


		Common stock		Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total shareholders' equity
Balance at June 30, 2025	$	1,722	$	10,156	$	241,403		$	(13,536	)	$	(908	)	$	238,837
Dividends declared						(3,268	)								(3,268	)
Net income						29,684									29,684
Other comprehensive income, net of taxes									2,340						2,340
Balance at March 31, 2026	$	1,722	$	10,156	$	267,819		$	(11,196	)	$	(908	)	$	267,593


		Common stock		Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total shareholders' equity
Balance at June 30, 2024	$	1,722	$	10,156	$	214,740		$	(19,710	)	$	(908	)	$	206,000
Dividends declared						(3,772	)								(3,772	)
Net income						21,805									21,805
Other comprehensive income, net of taxes									5,010						5,010
Balance at March 31, 2025	$	1,722	$	10,156	$	232,773		$	(14,700	)	$	(908	)	$	229,043

See notes to consolidated financial statements

Greene County Bancorp, Inc.

Consolidated Statements of Cash Flows

For the Nine Months Ended March 31, 2026 and 2025

(Unaudited)

(In thousands)


		2026			2025
Cash flows from operating activities:
Net income	$	29,684		$	21,805
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		838			790
Deferred income tax benefit		(2,611	)		(1,877	)
Net accretion of investment premiums and discounts		(1,646	)		(259	)
Net amortization of deferred loan costs and fees		331			274
Amortization of subordinated debt issuance costs		87			139
Provision for credit losses		1,907			2,196
Bank-owned life insurance income		(2,034	)		(1,910	)
Net loss on sale of securities available-for-sale		576			665
Net loss (gain) on equity securities		47			(72	)
Net increase in accrued income taxes		534			384
Net increase in accrued interest receivable		(3,689	)		(4,164	)
Net increase in prepaid expenses and other assets		(328	)		(1,958	)
Net increase (decrease) in accrued expenses and other liabilities		353			(1,248	)
Net cash provided by operating activities		24,049			14,765

Cash flows from investing activities:
Securities available-for-sale:
Proceeds from maturities		176,860			132,556
Proceeds from sale of securities		8,299			6,676
Purchases of securities		(457,936	)		(193,953	)
Proceeds from principal payments on securities		261,620			55,971
Securities held-to-maturity:
Proceeds from maturities		44,469			32,223
Purchases of securities		(111,405	)		(136,916	)
Proceeds from principal payments on securities		29,480			13,527
Net (purchase) redemption of Federal Home Loan Bank Stock		(45	)		3,462
Maturity of long-term certificates of deposit		200			1,185
Purchase of bank owned life insurance		(6,345	)		-
Net increase in loans receivable		(120,901	)		(120,484	)
Purchases of premises and equipment		(624	)		(386	)
Net cash used in investing activities		(176,328	)		(206,139	)

Cash flows from financing activities:
Net decrease in short-term borrowings		(800	)		(73,300	)
Repayment of long-term borrowings		-			(31,961	)
Repayment of subordinated notes payable		(20,000	)		-
Payment of cash dividends		(3,268	)		(3,772	)
Net increase in deposits		132,719			265,495
Net cash provided by financing activities		108,651			156,462

Net decrease in cash and cash equivalents		(43,628	)		(34,912	)
Cash and cash equivalents at beginning of period		183,078			190,395
Cash and cash equivalents at end of period	$	139,450		$	155,483

Cash paid during period for:
Interest	$	41,497		$	44,490
Income taxes	$	1,845		$	825

See notes to consolidated financial statements

Greene County Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

At and for the Three and Nine Months Ended March 31, 2026 and 2025

(1)

Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

Within the accompanying unaudited interim consolidated financial statements and related notes to the consolidated financial statements, the June 30, 2025 data was derived from the audited consolidated financial statements and notes of Greene County Bancorp, Inc. (the “Company”) and its wholly owned subsidiaries, the Bank of Greene County (the “Bank”) and the Bank’s wholly owned subsidiaries, Greene County Commercial Bank (the “Commercial Bank”) and Greene Property Holdings, Ltd. The interim consolidated financial statements at and for the three and nine months ended March 31, 2026 and 2025 are unaudited.

The unaudited interim consolidated financial statements include the accounts of certain Variable Interest Entities (“VIE(s)”). In accordance with the applicable accounting guidance for consolidations, the Company consolidates a VIE if it has (i) a variable interest in the entity; (ii) the power to direct activities of the VIE that most significantly affect the entity’s economic performance; and (iii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE (i.e., we are considered to be the primary beneficiary).

The Company uses the equity method to account for unconsolidated investments in VIEs if it has significant influence over the entity’s operating and financing decision. Unconsolidated investments in VIEs in which the Company does not have significant influence, are carried at a cost measurement alternative. See Note 14, Variable Interest Entities for information on our involvement with VIEs.

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. To the extent that information and notes required by GAAP, for complete financial statements, are contained in or are consistent with the audited financial statements incorporated by reference to Greene County Bancorp, Inc.’s Annual Report on Form 10-K for the year ended June 30, 2025, such information and notes have not been duplicated herein. In the opinion of management, all adjustments (consisting of only normal recurring items) necessary for a fair presentation of the financial position and results of operations and cash flows at and for the periods presented have been included. Certain previous years’ amounts in the unaudited consolidated financial statements and notes thereto, have been reclassified to conform to the current year’s presentation. All material inter-company accounts and transactions have been eliminated in the consolidation. The results of operations and other data for the three and nine months ended March 31, 2026, are not necessarily indicative of results that may be expected for the entire fiscal year ending June 30, 2026. These consolidated financial statements consider events that occurred through the date the consolidated financial statements were issued and should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K.

Nature of Operations

The Company’s primary business is the ownership and operation of its subsidiaries. At March 31, 2026, the Company operated 19 full-service banking offices, lending centers, an operations center, customer call center, administration center, and wealth management center, located in its market area consisting of the Hudson Valley and Capital District Regions of New York State. The Bank is primarily engaged in the business of attracting deposits from the general public in the Bank’s market area, and investing such deposits, together with other sources of funds, in loans and investment securities. The Commercial Bank’s primary business is to attract deposits from and provide banking services to local municipalities. Greene Property Holdings, Ltd. was formed as a New York corporation that has elected under the Internal Revenue Code to be a real estate investment trust. Currently, certain mortgages and loan notes held by the Bank are transferred and beneficially owned by Greene Property Holdings, Ltd. The Bank continues to service these loans.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses (“ACL”) on loans and on unfunded commitments.

(2)

Recent Accounting Pronouncements

Accounting Standards Issued Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which will require public entities to disclose annually a tabular rate reconciliation, including specific items such as state and local income tax, tax credits, nontaxable or nondeductible items, among others, and a separate disclosure requiring disaggregation of reconciling items as described above which equal or exceed 5% of the product of multiplying income from continuing operations by the applicable statutory income tax rate. The ASU is effective for annual periods beginning after December 15, 2024. The Company’s adoption of this standard is not expected to have a material impact on the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosure (Subtopic 220-40), which will require enhanced disaggregation of certain expense categories in the notes to the financial statements. The disclosure will require disaggregation of certain income statement expenses including employee compensation, depreciation and intangible asset amortization. The ASU is effective for annual reporting periods beginning after December 15, 2026, and early adoption is permitted. The Company’s adoption of this standard is not expected to have a material impact on the consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), Narrow-Scope Improvements, which clarifies the interim reporting requirements by improving navigability and more clearly specifying what disclosures are required in an interim reporting period applicable to Topic 270. The ASU is effective for annual reporting periods beginning after December 15, 2027, and early adoption is permitted. The Company’s adoption of this standard is not expected to have a material impact on the consolidated financial statements.

(3)

Securities

The following tables summarize the amortized cost and fair value of securities available-for-sale by major type:



		At March 31, 2026
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value
U.S. Treasury securities	$	5,836	$	-	$	47	$	5,789
U.S. government sponsored enterprises		7,097		-		726		6,371
State and political subdivisions		214,530		1,113		-		215,643
Mortgage-backed securities-residential		53,539		209		2,869		50,879
Mortgage-backed securities-multi-family		88,524		-		12,620		75,904
Corporate debt securities		15,954		57		396		15,615
Total securities available-for-sale	$	385,480	$	1,379	$	16,658	$	370,201



		At June 30, 2025
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value
U.S. Treasury securities	$	10,815	$	-	$	362	$	10,453
U.S. government sponsored enterprises		13,029		-		1,385		11,644
State and political subdivisions		208,450		1,394		-		209,844
Mortgage-backed securities-residential		34,382		212		3,007		31,587
Mortgage-backed securities-multi-family		88,874		-		14,277		74,597
Corporate debt securities		18,416		81		560		17,937
Total securities available-for-sale	$	373,966	$	1,687	$	19,591	$	356,062

⁽¹⁾

Amortized cost excludes accrued interest receivable of $5.1 million and $4.5 million at March 31, 2026 and June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statements of financial condition.

There was no allowance for credit losses on securities available-for-sale as of quarter ended March 31, 2026 and June 30, 2025, as each of the securities in the portfolio are investment grade, current as to principal and interest, and their price changes are consistent with interest and credit spreads when adjusting for convexity, rating, and industry differences.

The following tables summarize the amortized cost, fair value, and allowance for credit loss on securities held-to-maturity by major type:



		At March 31, 2026
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value		Allowance		Net carrying value
U.S. Treasury securities	$	13,890	$	-	$	633	$	13,257	$	-	$	13,890
State and political subdivisions		479,636		10,492		27,595		462,533		52		479,584
Mortgage-backed securities-residential		171,074		1,066		2,489		169,651		-		171,074
Mortgage-backed securities-multi-family		121,738		-		9,727		112,011		-		121,738
Corporate debt securities		28,500		166		1,066		27,600		497		28,003
Other securities		26		-		-		26		1		25
Total securities held-to-maturity	$	814,864	$	11,724	$	41,510	$	785,078	$	550	$	814,314



		At June 30, 2025
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value		Allowance		Net carrying value
U.S. Treasury securities	$	15,850	$	-	$	868	$	14,982	$	-	$	15,850
State and political subdivisions		460,959		8,938		32,028		437,869		40		460,919
Mortgage-backed securities-residential		138,468		1,388		2,327		137,529		-		138,468
Mortgage-backed securities-multi-family		130,119		-		11,963		118,156		-		130,119
Corporate debt securities		31,270		55		1,756		29,569		507		30,763
Other securities		29		-		-		29		1		28
Total securities held-to-maturity	$	776,695	$	10,381	$	48,942	$	738,134	$	548	$	776,147

⁽¹⁾

Amortized cost excludes accrued interest receivable of $7.0 million and $4.9 million at March 31, 2026 and June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statements of financial condition.

U.S. Treasury and mortgage-backed securities are issued by U.S. government entities and agencies. These securities are either explicitly and/or implicitly guaranteed by the U.S. government as to timely repayment of principal and interest, are highly rated by major rating agencies, and have a long history of zero credit losses. Therefore, the Company determined a zero credit loss assumption and did not calculate or record an allowance for credit loss for these securities. An allowance for credit losses on investment securities held-to-maturity has been recorded for certain municipal securities issued by state and political subdivisions and corporate debt securities, to account for expected lifetime credit loss using the Current Expected Credited Losses (“CECL”) methodology.

The Company’s current policies generally limit securities investments to U.S. government and securities of government sponsored enterprises, federal funds sold, municipal bonds, corporate debt obligations, subordinated debt of banks and certain mutual funds. In addition, the Company’s policies permit investments in mortgage-backed securities, including securities issued and guaranteed by Fannie Mae, Freddie Mac, and GNMA, and collateralized mortgage obligations issued by these entities. As of March 31, 2026, all mortgage-backed securities including collateralized mortgage obligations were securities of government sponsored enterprises, no private-label mortgage-backed securities or collateralized mortgage obligations were held in the securities portfolio. The Company’s investments in state and political subdivisions securities generally are municipal obligations that are general obligations supported by the general taxing authority of the issuer, and in some cases are insured. The obligations issued by school districts are supported by state aid. Primarily, these investments are issued by municipalities within New York State.

The Company’s current securities investment strategy utilizes a risk management approach of diversified investing among three categories: short-, intermediate- and long-term. The emphasis of this approach is to increase overall investment securities yields while managing interest rate risk. The Company will only invest in high quality securities, as determined by management’s analysis at the time of purchase. The Company generally does not engage in any balance sheet derivative or hedging investment transactions, such as balance sheet interest rate swaps or caps.

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


	For the three months ended March 31,
(In thousands)		2026			2025
Balance at beginning of period	$	616		$	439
Benefit for credit losses		(66	)		(17	)
Balance at end of period	$	550		$	422


	For the nine months ended March 31,
(In thousands)		2026		2025
Balance at beginning of period	$	548	$	483
Provision (benefit) for credit losses		2		(61	)
Balance at end of period	$	550	$	422

The following table shows fair value and gross unrealized losses, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2026.








	Less than 12 Months						More than 12 Months						Total
(In thousands, except number of securities)			Fair value		Unrealized losses	Number of securities			Fair value		Unrealized losses	Number of securities			Fair value		Unrealized losses	Number of securities
Securities available-for-sale:
U.S. Treasury securities		$	245	$	-	1		$	5,544	$	47	3		$	5,789	$	47	4
U.S. government sponsored enterprises			-		-	-			6,371		726	2			6,371		726	2
State and political subdivisions			-		-	-			22		-	1			22		-	1
Mortgage-backed securities-residential			18,040		294	7			19,469		2,575	17			37,509		2,869	24
Mortgage-backed securities-multi-family			-		-	-			75,904		12,620	30			75,904		12,620	30
Corporate debt securities			443		57	1			13,160		339	8			13,603		396	9
Total securities available-for-sale			18,728		351	9			120,470		16,307	61			139,198		16,658	70
Securities held-to-maturity:
U.S. Treasury securities			-		-	-			13,257		633	4			13,257		633	4
State and political subdivisions			28,030		742	208			212,156		26,853	1,282			240,186		27,595	1,490
Mortgage-backed securities-residential			72,274		689	21			23,971		1,800	23			96,245		2,489	44
Mortgage-backed securities-multi-family			-		-	-			112,011		9,727	42			112,011		9,727	42
Corporate debt securities			6,876		124	3			14,307		942	16			21,183		1,066	19
Total securities held-to-maturity			107,180		1,555	232			375,702		39,955	1,367			482,882		41,510	1,599
Total securities		$	125,908	$	1,906	241		$	496,172	$	56,262	1,428		$	622,080	$	58,168	1,669







	Less than 12 months						More than 12 months						Total
(In thousands, except number of securities)			Fair value		Unrealized losses	Number of securities			Fair value		Unrealized losses	Number of securities			Fair value		Unrealized losses	Number of securities
Securities available-for-sale:
U.S. Treasury securities		$	241	$	1	1		$	10,212	$	361	5		$	10,453	$	362	6
U.S. government sponsored enterprises			-		-	-			11,644		1,385	5			11,644		1,385	5
State and political subdivisions			-		-	-			43		-	1			43		-	1
Mortgage-backed securities-residential			-		-	-			20,872		3,007	21			20,872		3,007	21
Mortgage-backed securities-multi-family			-		-	-			74,597		14,277	30			74,597		14,277	30
Corporate debt securities			-		-	-			15,919		560	11			15,919		560	11
Total securities available-for-sale			241		1	1			133,287		19,590	73			133,528		19,591	74
Securities held-to-maturity:
U.S. Treasury securities			-		-	-			14,982		868	5			14,982		868	5
State and political subdivisions			23,577		339	154			231,645		31,689	1,511			255,222		32,028	1,665
Mortgage-backed securities-residential			9,470		151	4			26,541		2,176	26			36,011		2,327	30
Mortgage-backed securities-multi-family			-		-	-			118,156		11,963	45			118,156		11,963	45
Corporate debt securities			3,705		45	3			22,209		1,711	17			25,914		1,756	20
Total securities held-to-maturity			36,752		535	161			413,533		48,407	1,604			450,285		48,942	1,765
Total securities		$	36,993	$	536	162		$	546,820	$	67,997	1,677		$	583,813	$	68,533	1,839

There were no transfers of securities available-for-sale to held-to-maturity during the three and nine months ended March 31, 2026 and 2025. During the nine months ended March 31, 2026, a loss of $576,000 was recognized from a sale of four securities available-for-sale with a total par value of $8.3 million. During the three and nine months ended March 31, 2025, a loss of $665,000 was recognized from a sale of two securities available-for-sale with a total par value of $7.0 million. The proceeds were used to fund higher yielding investments.

The estimated fair values of debt securities at March 31, 2026, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations, with or without call or prepayment penalties.

(In thousands)


Securities available-for-sale		Amortized cost		Fair value
Within one year	$	224,210	$	225,189
After one year through five years		17,707		16,915
After five years through ten years		1,500		1,314
After ten years		-		-
Total securities available-for-sale		243,417		243,418
Mortgage-backed securities		142,063		126,783
Total securities available-for-sale		385,480		370,201

Securities held-to-maturity
Within one year		59,684		59,855
After one year through five years		165,386		166,259
After five years through ten years		219,887		204,021
After ten years		77,095		73,281
Total securities held-to-maturity		522,052		503,416
Mortgage-backed securities		292,812		281,662
Total securities held-to-maturity		814,864		785,078
Total securities	$	1,200,344	$	1,155,279

At March 31, 2026 and June 30, 2025, securities with an aggregate fair value of $1.1 billion and $1.0 billion, respectively, were pledged as collateral for deposits in excess of FDIC insurance limits for various municipalities placing deposits with the Commercial Bank. At March 31, 2026 and June 30, 2025, securities with an aggregate fair value of $15.9 million and $18.2 million, respectively, were pledged as collateral for potential borrowings at the Federal Reserve Bank discount window. The Company did not participate in any securities lending programs during the three and nine months ended March 31, 2026 or 2025.

Federal Home Loan Bank Stock

Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions FHLB stock is carried at cost. FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. Estimated impairment of this investment is evaluated quarterly and is a matter of judgment that reflects management’s view of the FHLB’s long-term performance, which includes factors such as the following: its operating performance; the severity and duration of declines in the fair value of its net assets related to its capital stock amount; its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance; the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of the FHLB; and its liquidity and funding position. After evaluating these considerations, the Company concluded that the par value of its investment in FHLB stock will be recovered and therefore, no impairment was recorded during the three and nine months ended March 31, 2026 or 2025.

(4)

Loans and Allowance for Credit Losses on Loans

Loan segments are summarized below as of the dates indicated:


(In thousands)		March 31, 2026			June 30, 2025
Residential real estate	$	415,749		$	417,719
Commercial real estate		1,151,349			1,054,504
Home equity		41,779			34,103
Consumer		3,845			4,311
Commercial		134,981			116,769
Total gross loans (1)(2)		1,747,703			1,627,406
Allowance for credit losses on loans		(21,778	)		(20,146	)
Loans receivable, net	$	1,725,925		$	1,607,260

⁽¹⁾

Loan balances include net deferred fees/(costs) of ($490,000) and ($567,000) at March 31, 2026 and June 30, 2025, respectively.

⁽²⁾

Loan balances exclude accrued interest receivable of $8.0 million and $7.0 million at March 31, 2026 and June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statement of financial condition.

Non-accrual Loans

Management places loans on non-accrual status once the loans have become 90 days or more delinquent. A non-accrual loan is defined as a loan in which collectability is questionable and therefore interest on the loan will no longer be recognized on an accrual basis. A loan is not placed back on accrual status until the borrower has demonstrated the ability and willingness to make timely payments on the loan. A loan does not have to be 90 days delinquent in order to be classified as non-accrual. Loans on non-accrual status totaled $3.1 million at March 31, 2026, of which there were four residential real estate loans totaling $644,000 in the process of foreclosure. Included in non-accrual loans were $1.7 million of loans which were less than 90 days past due at March 31, 2026, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on non-accrual status totaled $3.1 million at June 30, 2025, of which there were one commercial real estate loan totaling $142,000 and three residential real estate loans totaling $841,000 in the process of foreclosure. Included in non-accrual loans were $1.2 million of loans which were less than 90 days past due at June 30, 2025, but have a recent history of delinquency greater than 90 days past due. The activity in non-performing loans during the nine months ended March 31, 2026, included $763,000 in loan repayments, $84,000 in charge-offs or transfers to foreclosure, and $860,000 of loans placed into nonperforming status.

The following table sets forth information regarding delinquent and/or non-accrual loans as of March 31, 2026:


(In thousands)		30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total loans		Loans on non- accrual
Residential real estate	$	4,212	$	133	$	870	$	5,215	$	410,534	$	415,749	$	2,180
Commercial real estate		548		2,661		326		3,535		1,147,814		1,151,349		556
Home equity		14		128		29		171		41,608		41,779		202
Consumer		17		-		6		23		3,822		3,845		6
Commercial		82		-		129		211		134,770		134,981		129
Total gross loans	$	4,873	$	2,922	$	1,360	$	9,155	$	1,738,548	$	1,747,703	$	3,073

The following table sets forth information regarding delinquent and/or non-accrual loans as of June 30, 2025:


(In thousands)		30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total loans		Loans on non- accrual
Residential real estate	$	-	$	775	$	1,362	$	2,137	$	415,582	$	417,719	$	2,265
Commercial real estate		-		209		367		576		1,053,928		1,054,504		628
Home equity		85		13		30		128		33,975		34,103		30
Consumer		20		3		2		25		4,286		4,311		2
Commercial		-		-		106		106		116,663		116,769		135
Total gross loans	$	105	$	1,000	$	1,867	$	2,972	$	1,624,434	$	1,627,406	$	3,060

The Company had no accruing loans delinquent 90 days or more at March 31, 2026 and June 30, 2025.

Allowance for Credit Losses on Loans

The allowance for credit losses (“ACL”) for the loan portfolio is established through a provision for credit losses based on the results of life of loan quantitative models, reserves associated with collateral-dependent loans individually evaluated and adjustments for the impact of current economic conditions not accounted for in the quantitative models. The discounted cash flow methodology is used to calculate the ACL on loans for the residential real estate, commercial real estate, home equity and commercial loan segments. The Company uses a four-quarter reasonable and supportable forecast period based on the one-year percent change in national GDP and the national unemployment rate, as economic variables. The forecast will revert to long-term economic conditions over a four-quarter reversion period on a straight-line basis. The remaining life method will be utilized to determine the ACL for the consumer loan segment. A qualitative factor framework has been developed to adjust the quantitative loss rates for asset-specific risk characteristics or current conditions at the reporting date. The Company elected to use the practical expedient to evaluate loans individually, if they are collateral dependent loans that are on non-accrual status with a balance of $250,000 or greater, which is consistent with regulatory requirements. The fair value of the collateral dependent loan less selling expenses will be compared to the loan balance to determine if an ACL on loans is required. While management uses available information to recognize losses on loans, additions or reductions to the allowance may fluctuate from one reporting period to another. These fluctuations are reflective of changes in the reasonable and supportable forecast, analysis of loans individually evaluated, and/or changes in management’s assessment of the qualitative factors.

In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to recognize additions to the allowance based on their judgment about information available to them at the time of their examination. The Company charges loans off against the allowance for credit losses when it becomes evident that a loan cannot be collected within a reasonable amount of time, or that it will cost the Company more than it will receive and all possible avenues of repayment have been analyzed, including the potential of future cash flow, the value of the underlying collateral, and strength of any guarantors or co-borrowers. Generally, consumer loans and smaller business loans (not secured by real estate) in excess of 90 days are charged-off against the allowance for credit losses, unless equitable arrangements are made. Included within consumer loan charge-offs and recoveries are deposit accounts that have been overdrawn in excess of 60 days. For loans secured by real estate, a charge-off is recorded when it is determined that the collection of all or a portion of a loan may not be collected and the amount of that loss can be reasonably estimated. The allowance for credit losses is increased by a provision for credit losses (which results in a charge to expense) and recoveries of loans previously charged off and is reduced by charge-offs.

The following tables set forth the activity and allocation of the allowance for credit losses on loans by segment:



		Activity for the three months ended March 31, 2026
(In thousands)		Residential real estate			Commercial real estate		Home equity		Consumer			Commercial			Total
Balance at December 31, 2025	$	4,625		$	13,419	$	340	$	318		$	2,632		$	21,334
Charge-offs		-			-		-		(100	)		(6	)		(106	)
Recoveries		-			1		-		23			9			33
Provision (benefit)		(10	)		345		4		59			119			517
Balance at March 31, 2026	$	4,615		$	13,765	$	344	$	300		$	2,754		$	21,778



		Activity for the three months ended March 31, 2025
(In thousands)		Residential real estate		Commercial real estate		Home equity		Consumer			Commercial			Total
Balance at December 31, 2024	$	4,531	$	12,933	$	234	$	414		$	2,079		$	20,191
Charge-offs		-		-		-		(93	)		(44	)		(137	)
Recoveries		-		1		-		31			9			41
Provision		65		865		6		53			112			1,101
Balance at March 31, 2025	$	4,596	$	13,799	$	240	$	405		$	2,156		$	21,196



		Activity for the nine months ended March 31, 2026
(In thousands)		Residential real estate			Commercial real estate		Home equity		Consumer			Commercial			Total
Balance at June 30, 2025	$	4,613		$	12,614	$	260	$	381		$	2,278		$	20,146
Charge-offs		(43	)		-		-		(285	)		(51	)		(379	)
Recoveries		2			3		-		78			23			106
Provision		43			1,148		84		126			504			1,905
Balance at March 31, 2026	$	4,615		$	13,765	$	344	$	300		$	2,754		$	21,778



		Activity for the nine months ended March 31, 2025
(In thousands)		Residential real estate		Commercial real estate			Home equity			Consumer			Commercial			Total
Balance at June 30, 2024	$	4,237	$	12,218		$	212		$	500		$	2,077		$	19,244
Charge-offs		(44)		(5	)		(13	)		(293	)		(57	)		(412	)
Recoveries		2		3			-			75			27			107
Provision		401		1,583			41			123			109			2,257
Balance at March 31, 2025	$	4,596	$	13,799		$	240		$	405		$	2,156		$	21,196

Credit monitoring process

Management closely monitors the quality of the loan portfolio and has established a loan review process designed to help monitor any change in borrower risk during the life cycle of their loan. The Company utilizes a credit quality grading system that is used at loan inception and updated as appropriate based on an annual review process. The credit quality grade helps management make a consistent assessment of each loan relationship’s credit risk and identify any portfolio trends that could impact profitability. Consistent with regulatory guidelines, the Company provides for the classification of loans, such as “Pass,” “Special Mention,” “Substandard,” “Doubtful” and “Loss” classifications.

Commercial grading system

Loss

Loss ratings are loans that are considered uncollectible and of such little value that their continuance as active assets of the Company is not warranted. Loss rating does not necessarily mean that the loan has no recovery or salvage value, however, it is not practical or desirable to defer charging off the loan.

Doubtful

Doubtful ratings are loans that have all the weakness inherent in loans classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Doubtful ratings generally are non-performing and considered to have a high risk of default.

Substandard

Substandard ratings are loans that possess well-defined weaknesses that jeopardize the orderly liquidation of debt and are characterized by the distinct possibility that the Company will sustain some loss, if the deficiencies are not corrected. Substandard ratings are inadequately protected by the current sound worth and paying capacity of the borrower or the collateral pledged, if any.

Special mention

Special mention ratings are loans that have potential weaknesses or emerging problems which require close attention. These weaknesses, if left uncorrected, could lead to deterioration in the repayment prospects for the loan or the Company’s collateral position in the future. Special mention loans are less risky than substandard assets as no loss of principal or interest is anticipated, unless the potential problems continue for a prolonged basis.

Pass

Pass ratings are loans that do not encompass loans graded as Loss, Doubtful, Substandard, or Special mention. Pass loans range from Pass/Watch, Acceptable, Average, Satisfactory, Good and Excellent. Pass loans demonstrate sufficient cash flow to ensure full repayment of the loan, with Pass ratings being determined by the quality of the collateral and equity position, stability of operations or management, and the guarantors.

Residential and consumer grading system

Residential real estate, home equity and consumer loans are graded as either non-performing or performing.

Non-performing

Non-performing loans are loans in which the borrower has not made the scheduled payments of principal or interest, and are generally loans over 90 days past due, and loans on non-accrual status.

Performing

Performing loans are those loans in which the borrower is making timely payments of both principal and interest as upon the agreed loan terms.

The following tables present the amortized cost basis of the Company’s loans by class and vintage and includes gross charge-offs by loan class and vintage as of the nine months ended March 31, 2026:






		At March 31, 2026
		Term loans amortized cost basis by origination year												Revolving loans amortized cost basis		Revolving loans converted to term		Total
(In thousands)		2026		2025		2024		2023		2022		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Residential real estate
By payment activity status:
Performing	$	28,535	$	45,110	$	51,757	$	51,923	$	79,569	$	156,675	$	-	$	-	$	413,569
Non-performing		-		-		-		-		52		2,128		-		-		2,180
Total residential real estate		28,535		45,110		51,757		51,923		79,621		158,803		-		-		415,749
Current period gross charge-offs		-		-		-		-		-		43		-		-		43

Commercial real estate
By internally assigned grade:
Pass		124,078		221,081		118,960		169,053		222,328		264,016		3,055		433		1,123,004
Special mention		-		592		1,050		1,142		640		2,987		-		-		6,411
Substandard		-		-		-		8,863		150		12,849		-		72		21,934
Total commercial real estate		124,078		221,673		120,010		179,058		223,118		279,852		3,055		505		1,151,349
Current period gross charge-offs		-		-		-		-		-		-		-		-		-

Home equity
By payment activity status:
Performing		2,756		2,457		3,609		2,012		192		927		29,151		473		41,577
Non-performing		-		-		-		-		-		-		202		-		202
Total home equity		2,756		2,457		3,609		2,012		192		927		29,353		473		41,779
Current period gross charge-offs		-		-		-		-		-		-		-		-		-

Consumer
By payment activity status:
Performing		1,242		956		851		407		167		146		70		-		3,839
Non-performing		-		-		6		-		-		-		-		-		6
Total Consumer		1,242		956		857		407		167		146		70		-		3,845
Current period gross charge-offs		238		7		38		-		-		1		1		-		285

Commercial
By internally assigned grade:
Pass		26,592		9,632		9,324		6,728		3,555		23,578		48,879		178		128,466
Special mention		-		-		-		-		94		244		160		-		498
Substandard		-		-		-		9		5,433		499		50		26		6,017
Total Commercial	$	26,592	$	9,632	$	9,324	$	6,737	$	9,082	$	24,321	$	49,089	$	204	$	134,981
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	51	$	-	$	51

The following tables present the amortized cost basis of the Company’s loans by class and vintage and includes gross charge-offs by loan class and vintage as of the twelve months ended June 30, 2025:






		At June 30, 2025
(In thousands)		Term loans amortized cost basis by origination year												Revolving loans amortized cost basis		Revolving loans converted to term		Total
(In thousands)		2025		2024		2023		2022		2021		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Residential real estate
By payment activity status:
Performing	$	42,672	$	55,665	$	58,277	$	85,153	$	71,560	$	102,127	$	-	$	-	$	415,454
Non-performing		-		-		-		56		-		2,209		-		-		2,265
Total residential real estate		42,672		55,665		58,277		85,209		71,560		104,336		-		-		417,719
Current period gross charge-offs		-		-		-		-		44		-		-		-		44

Commercial real estate
By internally assigned grade:
Pass		192,619		120,883		177,469		228,960		116,680		177,025		3,913		5,032		1,022,581
Special mention		-		479		1,339		656		263		4,747		-		-		7,484
Substandard		-		-		9,078		-		209		14,942		-		210		24,439
Total commercial real estate		192,619		121,362		187,886		229,616		117,152		196,714		3,913		5,242		1,054,504
Current period gross charge-offs		-		-		-		-		-		5		-		-		5

Home equity
By payment activity status:
Performing		2,753		4,761		2,437		229		315		791		22,637		150		34,073
Non-performing		-		-		-		-		-		-		30		-		30
Total home equity		2,753		4,761		2,437		229		315		791		22,667		150		34,103
Current period gross charge-offs		-		-		-		-		-		-		13		-		13

Consumer
By payment activity status:
Performing		1,631		1,371		689		346		149		51		72		-		4,309
Non-performing		2		-		-		-		-		-		-		-		2
Total Consumer		1,633		1,371		689		346		149		51		72		-		4,311
Current period gross charge-offs		335		40		-		10		1		-		-		-		386

Commercial
By internally assigned grade:
Pass		11,917		11,031		8,157		4,584		12,482		15,106		45,905		68		109,250
Special mention		-		-		-		50		-		93		238		183		564
Substandard		-		-		-		6,279		30		568		78		-		6,955
Total Commercial	$	11,917	$	11,031	$	8,157	$	10,913	$	12,512	$	15,767	$	46,221	$	251	$	116,769
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	38	$	28	$	-	$	66

The Company had no loans classified doubtful or loss at March 31, 2026 or June 30, 2025. Management continues to monitor classified loan relationships closely.

Allowance for Credit Losses on Unfunded Commitments

The Company estimates expected credit losses over the contractual period in which the Company has exposure to a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments exposure is recognized in other liabilities and is adjusted through a provision expense in other noninterest expense. At March 31, 2026, the allowance for credit losses on unfunded commitments totaled $1.3 million as compared to $1.8 million at June 30, 2025.

Individually Evaluated Loans

Loans individually evaluated had an amortized cost basis of $915,000 and $751,000, with an allowance for credit losses on loans of $472,000 and $549,000 at March 31, 2026 and June 30, 2025, respectively. At March 31, 2026, the amortized cost basis of collateral dependent loans was $742,000 for residential real estate loans and $173,000 for home equity loans. At June 30, 2025, the amortized cost basis of collateral dependent loans was $751,000 for residential real estate loans. The allowance for credit loss for collateral dependent loans is individually assessed based on the fair value of the collateral less costs to sell at the reporting date.

Loan Modifications to Borrowers Experiencing Financial Difficulties

When the Company modifies a loan for borrowers experiencing financial difficulty, such modifications generally include one or a combination of the following: an extension of the maturity date; a stated rate of interest not at the market rate for new debt with similar risk; a change in the scheduled payment amount; or principal forgiveness. The Company works with loan customers experiencing financial difficulty and may enter into loan modifications to achieve the best mutual outcome given the financial circumstances of the borrower.

The following tables present the amortized cost basis of the loans modified to borrowers experiencing financial difficulty by type of concession granted:



		For the three months ended March 31, 2026
		Term extension
(Dollars in thousands)		Amortized cost	Percentage of total class
Commercial real estate	$	299	0.03	%
Total	$	299



		For the three months ended March 31, 2025
		Term extension
(Dollars in thousands)		Amortized cost	Percentage of total class
Commercial real estate	$	299	0.03	%
Total	$	299




		For the nine months ended March 31, 2026
		Term extension				Interest rate reduction
(Dollars in thousands)		Amortized cost	Percentage of total class			Amortized cost	Percentage of total class
Commercial real estate	$	371	0.03	%	$	2,451	0.21	%
Total	$	371			$	2,451



		For the nine months ended March 31, 2025
		Term extension				Interest rate reduction
(Dollars in thousands)		Amortized cost	Percentage of total class			Amortized cost	Percentage of total class
Commercial real estate	$	299	0.03	%	$	2,545	0.24	%
Total	$	299			$	2,545

The following tables presents the financial effect of the modifications made to borrowers experiencing financial difficulty:


		For the three months ended March 31, 2026
Loan type		Term extension
Commercial real estate		6 month term extension


		For the three months ended March 31, 2025
Loan type		Term extension
Commercial real estate		12 month term extension


	For the nine months ended March 31, 2026
Loan type	Term extension	Interest rate reduction
Commercial real estate	6 and 39 month term extensions	Interest rates were reduced by an average of 1.00%


	For the nine months ended March 31, 2025
Loan type	Term extension	Interest rate reduction
Commercial real estate	12 month term extension	Interest rates were reduced by an average of 1.45%

There were no loans that had been modified with borrowers experiencing financial difficulty in the prior twelve months ended March 31, 2026, that had a payment default during the three and nine months ended March 31, 2026.

There was one commercial real estate loan and one consumer loan that had been modified in the form of a term extension with a borrower experiencing financial difficulty in the prior twelve months ended March 31, 2025, that had a payment default during the three and nine months ended March 31, 2025.

The Company closely monitors the performance of loans that have been modified. The following table depicts the performance of loans that have been modified to borrowers experiencing financial difficulty that were modified in the prior twelve months at amortized cost basis:



		At March 31, 2026
(In thousands)		Current		30-59 days past due		60-89 days past due		90 days or more past due		Total
Commercial real estate	$	2,822	$	-	$	-	$	-	$	2,822
Total	$	2,822	$	-	$	-	$	-	$	2,822



		At March 31, 2025
(In thousands)		Current		30-59 days past due		60-89 days past due		90 days or more past due		Total
Commercial real estate	$	6,606	$	299	$	-	$	-	$	6,905
Consumer		-		16		-		-		16
Total	$	6,606	$	315	$	-	$	-	$	6,921

Foreclosed real estate

Foreclosed real estate (“FRE”) consists of properties acquired through mortgage loan foreclosure proceedings, deed in lieu of foreclosure or in full or partial satisfaction of loans. At March 31, 2026 and June 30, 2025, the Company had no foreclosed real estate.

(5)

Fair Value Measurements and Fair Value of Financial Instruments

Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sale transaction on the dates indicated. The estimated fair value amounts have been measured as of March 31, 2026 and June 30, 2025, and have not been re-evaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each period-end.

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

The FASB ASC Topic 820 on “Fair Value Measurement” established a fair value hierarchy that prioritized the inputs to valuation techniques used to measure fair value. The fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are not adjusted for transaction costs. A fair value hierarchy exists within GAAP that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used are as follows:



						Fair Value Measurements Using
						Quoted prices in active markets for identical assets			Significant other observable inputs		Significant unobservable inputs
(In thousands)	March 31, 2026			(Level 1)			(Level 2)				(Level 3)
Assets:
U.S. Treasury securities		$	5,789		$	-		$	5,789	$	-
U.S. government sponsored enterprises			6,371			-			6,371		-
State and political subdivisions			215,643			-			215,643		-
Mortgage-backed securities-residential			50,879			-			50,879		-
Mortgage-backed securities-multi-family			75,904			-			75,904		-
Corporate debt securities			15,615			-			15,615		-
Securities available-for-sale			370,201			-			370,201		-
Equity securities			355			355			-		-
Interest rate swaps			3,823			-			3,823		-
Total		$	374,379		$	355		$	374,024	$	-

Liabilities:
Interest rate swaps		$	3,823		$	-		$	3,823	$	-
Total		$	3,823		$	-		$	3,823	$	-



					Fair Value Measurements Using
					Quoted prices in active markets for identical assets		Significant other observable inputs		Significant Unobservable inputs
(In thousands)	June 30, 2025				(Level 1)		(Level 2)		(Level 3)
Assets:
U.S. Treasury securities		$	10,453	$	-	$	10,453	$	-
U.S. government sponsored enterprises			11,644		-		11,644		-
State and political subdivisions			209,844		-		209,844		-
Mortgage-backed securities-residential			31,587		-		31,587		-
Mortgage-backed securities-multi-family			74,597		-		74,597		-
Corporate debt securities			17,937		-		17,937		-
Securities available-for-sale			356,062		-		356,062		-
Equity securities			402		402		-		-
Interest rate swaps			4,733		-		4,733		-
Total		$	361,197	$	402	$	360,795	$	-

Liabilities:
Interest rate swaps		$	4,733	$	-	$	4,733	$	-
Total		$	4,733	$	-	$	4,733	$	-

Certain investments that are actively traded and have quoted market prices have been classified as Level 1 valuations. Other investment securities available-for-sale have been valued by reference to prices for similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2.

In addition to disclosures of the fair value of assets on a recurring basis, FASB ASC Topic 820 on “Fair Value Measurement” requires disclosures for assets and liabilities measured at fair value on a nonrecurring basis, such as loans individually evaluated for expected credit losses in the period in which a re-measurement at fair value is performed. The Company uses the fair value of underlying collateral, less costs to sell, to estimate the allowance for credit losses for individually evaluated loans. Management may modify the appraised values, for qualitative factors such as economic conditions and estimated liquidation expenses ranging from 21.3% to 88.3%. Such modifications to the appraised values could result in lower valuations of such collateral. Based on the valuation techniques used, the fair value measurements for loans evaluated individually are classified as Level 3.

Fair values for foreclosed real estate are initially recorded at the estimated fair value of the property less estimated costs to dispose at the time of acquisition to establish a new carrying value. Values are derived from appraisals, similar to loans individually evaluated for expected credit loss, of underlying collateral. Any write-downs from the carrying value of the loan to estimated fair value, which are required at the time of foreclosure, are charged to the allowance for credit losses. Subsequent adjustments to the carrying value of such properties resulting from declines in fair value result in the establishment of a valuation allowance and are charged to operations in the period in which the declines occur. In the determination of fair value subsequent to foreclosure, management may modify the appraised values, for qualitative factors such as economic conditions and estimated liquidation expenses. Such modifications to the appraised values could result in lower valuations of such collateral. Based on the valuation techniques used, the fair value measurements for foreclosed real estate are classified as Level 3.



			March 31, 2026			June 30, 2025
(In thousands)	Fair value hierarchy		Carrying amount	Estimated fair value		Carrying amount		Estimated fair value
Loans evaluated individually	3	$	915	443	$	751	$	202

No other financial assets or liabilities were re-measured during the three and nine month period on a nonrecurring basis.

The carrying amounts reported in the statements of financial condition for total cash and cash equivalents, long-term certificates of deposit, accrued interest receivable and accrued interest payable approximate their fair values. Fair values of securities are based on quoted market prices (Level 1), where available, or matrix pricing (Level 2), which is a mathematical technique, used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. The carrying amount of Federal Home Loan Bank stock approximates fair value due to its restricted nature. The fair values for loans are measured using the "exit price" notion, which is a reasonable estimate of what another party might pay in an orderly transaction. Fair values for variable rate loans that reprice frequently, with no significant credit risk, are based on carrying value. Fair values for fixed rate loans are estimated using discounted cash flows and interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values disclosed for demand and savings deposits are equal to carrying amounts at the reporting date. The carrying amounts for variable rate money market deposits approximate fair values at the reporting date. Fair values for long- term certificates of deposit are estimated using discounted cash flows and interest rates currently being offered in the market on similar certificates. Fair value for Federal Home Loan Bank long-term borrowings are estimated using discounted cash flows and interest rates currently being offered on similar borrowings. The carrying value of short-term Federal Home Loan Bank borrowings approximates its fair value. Fair value for subordinated notes payable is estimated based on a discounted cash flow methodology or observations of recent highly-similar transactions. Fair value for interest rate swaps include any accrued interest and are valued using the present value of cash flows discounted using observable forward rate assumptions. The Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy.

The carrying amounts and estimated fair value of financial instruments are as follows:




		March 31, 2026				Fair value measurements using
(In thousands)		Carrying amount		Fair value		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	139,450	$	139,450	$	139,450	$	-	$	-
Long-term certificate of deposit		1,225		1,226		-		1,226		-
Securities available-for-sale		370,201		370,201		-		370,201		-
Securities held-to-maturity		814,314		785,078		-		785,078		-
Equity securities		355		355		355		-		-
Federal Home Loan Bank stock		5,549		5,549		-		5,549		-
Net loans receivable		1,725,925		1,667,977		-		-		1,667,977
Accrued interest receivable		20,070		20,070		-		20,070		-
Interest rate swap asset		3,823		3,823		-		3,823		-

Deposits		2,772,554		2,771,714		-		2,771,714		-
Borrowings		77,389		77,514		-		77,514		-
Subordinated notes payable, net		29,954		29,089		-		29,089		-
Accrued interest payable		707		707		-		707		-
Interest rate swap liability		3,823		3,823		-		3,823		-



		June 30, 2025				Fair value measurements using
(In thousands)		Carrying amount		Fair value		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	183,078	$	183,078	$	183,078	$	-	$	-
Long-term certificate of deposit		1,425		1,421		-		1,421		-
Securities available-for-sale		356,062		356,062		-		356,062		-
Securities held-to-maturity		776,147		738,134		-		738,134		-
Equity securities		402		402		402		-		-
Federal Home Loan Bank stock		5,504		5,504		-		5,504		-
Net loans receivable		1,607,260		1,536,150		-		-		1,536,150
Accrued interest receivable		16,381		16,381		-		16,381		-
Interest rate swap asset		4,733		4,733		-		4,733		-

Deposits		2,639,835		2,639,246		-		2,639,246		-
Borrowings		78,189		78,346		-		78,346		-
Subordinated notes payable, net		49,867		48,485		-		48,485		-
Accrued interest payable		1,271		1,271		-		1,271		-
Interest rate swap liability		4,733		4,733		-		4,733		-

(6)

Derivative Instruments

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, primarily by managing the amount, sources and duration of its assets and liabilities. The Company has interest rate derivatives that result from a service provided to certain qualifying customers and therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.

Derivatives Not Designated as Hedging Instruments

The Company enters into interest rate swap agreements with its commercial customers to provide them with a long-term fixed rate, while simultaneously entering into offsetting interest rate swap agreements with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure. These interest rate swap agreements are not designated as hedges for accounting purposes. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not present any material exposure to the Company’s consolidated statements of income. The Company records its interest rate swap agreements at fair value and are presented within other assets and other liabilities on the consolidated statements of financial condition. Changes in the fair value of assets and liabilities arising from these derivatives are included net, in other operating income in the consolidated statements of income. Under terms of the agreements with the third-party counterparties, the Company provides cash collateral to the counterparty, when required for the initial trade. Subsequent to the trade, the margin is exchanged in either direction based upon the estimated fair value of the underlying contracts. Cash collateral represents the amount that is exchanged under master netting agreements that allows the Company to offset the derivative position with the related collateral. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

The following tables present the notional amount and fair values of interest rate derivative positions:


	At March 31, 2026
	Asset derivatives					Liability derivatives
(In thousands)	Statement of financial condition location		Notional amount		Fair value	Statement of financial condition location		Notional amount		Fair value
Interest rate derivatives	Other assets	$	169,310	$	3,823	Other liabilities	$	169,310	$	3,823
Less cash collateral					-	Other liabilities				(3,240	)
Total after netting				$	3,823				$	583


	At June 30, 2025
	Asset derivatives					Liability derivatives
(In thousands)	Statement of financial condition location		Notional amount		Fair value	Statement of financial condition location		Notional amount		Fair value
Interest rate derivatives	Other assets	$	140,777	$	4,733	Other liabilities	$	140,777	$	4,733
Less cash collateral					-	Other liabilities				(4,280	)
Total after netting				$	4,733				$	453

Risk Participation Agreements

Risk participation agreements (“RPAs”) are guarantees issued by the Company to other parties for a fee, whereby the Company agrees to participate in the credit risk of a derivative customer of the other party. Under the terms of these agreements, the “participating bank” receives a fee from the “lead bank” in exchange for the guarantee of reimbursement if the customer defaults on an interest rate swap. The interest rate swap is transacted such that any and all exchanges of interest payments (favorable and unfavorable) are made between the lead bank and the customer. In the event that an early termination of the swap occurs and the customer is unable to make a required close out payment, the participating bank assumes that obligation and is required to make this payment.

RPAs in which the Company acts as the lead bank are referred to as “participations-out,” in reference to the credit risk associated with the customer derivatives being transferred out of the Company. Participations-out generally occur concurrently with the sale of new customer derivatives. The RPAs participations-out are spread out over three financial institution counterparties and terms range between three to nine years. The Company’s credit exposure transferred out was $258,000 and $506,000 as of March 31, 2026 and June 30, 2025, respectively. The Company transferred out RPAs with a notional amount of $22.4 million and $18.9 million as of March 31, 2026 and June 30, 2025, respectively.

RPAs where the Company acts as the participating bank are referred to as “participations-in,” in reference to the credit risk associated with the counterparty’s derivatives being assumed by the Company. The Company’s maximum credit exposure is based on its proportionate share of the settlement amount of the referenced interest rate swap. Settlement amounts are generally calculated based on the fair value of the swap plus outstanding accrued interest receivables from the customer. The RPAs participations-ins are spread out over five financial institution counterparties and terms range between one to eleven years. The credit exposure associated with risk participations-ins was $600,000 and $1.0 million as of March 31, 2026 and June 30, 2025, respectively. The Company held RPAs with a notional amount of $153.1 million and $130.9 million as of March 31, 2026 and June 30, 2025, respectively.

(7)

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is computed in a manner similar to that of basic EPS except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares that would have been outstanding under the treasury stock method if all potentially dilutive common shares (such as stock options) issued became vested during the period. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for either the basic or diluted EPS calculations. There were no dilutive or anti-dilutive securities or contracts outstanding during the three and nine months ended March 31, 2026 and 2025.



		For the three months ended March 31,				For the nine months ended March 31,
		2026		2025		2026		2025

Net Income	$	10,522,000	$	8,054,000	$	29,684,000	$	21,805,000
Weighted average shares - basic		17,026,828		17,026,828		17,026,828		17,026,828
Weighted average shares - diluted		17,026,828		17,026,828		17,026,828		17,026,828

Earnings per share - basic	$	0.62

GREENE COUNTY BANCORP INC 10-Q