SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2026

SEGMENT INFORMATION

SEGMENT INFORMATION

15. SEGMENT INFORMATION

The Company has two primary business segments, its community banking segment, and its wealth management segment.

The community banking segment provides financial services to consumers and businesses principally in the Greater Syracuse Area and Onondaga County of New York State. These services include providing various types of loans to customers, accepting deposits, mortgage banking, and other traditional banking services. Parent company income is included in the community banking segment, as the majority of effort for these functions is related to this segment. Major revenue sources include net interest income and service fees on deposit accounts. Expenses include personnel and branch-network support charges. The wealth management agency segment offers individual investment management for individuals in the Greater Syracuse Area. The primary revenue source is commissions from 401(k) management and brokered accounts.

The Company’s Chief Financial Officer is the chief operating decision maker (“CODM”). The CODM evaluates the financial performance of the Company’s components such as evaluating revenue streams, significant expenses, and budget to actual results in assessing the performance of the Company’s segments in the determination of allocating resources. Financial information regarding each significant segment expense outlined below is regularly provided (at least monthly) to the CODM. For the community banking segment, interest expense is a significant segment expense. Additionally, for each of the two reportable segments, compensation and employee benefits are significant segment expenses.

Information about the segments is presented in the following table as of and for the periods indicated:

(In thousands)	At June 30, 2026		At December 31, 2025
Total assets for Seneca Savings	$	311,658	$	312,487
Total assets for Financial Quest		1,351		1,236
Elimination of intercompany receivables		(632)		(1,609)
Total consolidated assets	$	312,377	$	312,114

	Three Months Ended June 30,
	2026						2025
(In thousands)	Seneca Savings		Financial Quest		Total		Seneca Savings		Financial Quest		Total
INTEREST INCOME
Total interest income	$	3,966	$	—	$	3,966	$	3,595	$	—	$	3,595
INTEREST EXPENSE
Total interest expense		1,358		—		1,358		1,364		—		1,364
Net interest income		2,608		—		2,608		2,231		—		2,231
Provision for credit losses available-for-sale securities		148		—		148		—		—		—
Provision for credit losses loans receivable		(28)		—		(28)		511		—		511
Net interest income after provision for credit losses		2,488		—		2,488		1,720		—		1,720
NONINTEREST INCOME
Service fees		39		—		39		33		—		33
Income from financial services		—		245		245		—		240		240
Fee income		274		8		282		192		8		200
Earnings on deferred compensation plan assets		35		—		35		26		—		26
Net gains on sale of residential mortgage loans		25		—		25		32		—		32
Total noninterest income		373		253		626		283		248		531
NONINTEREST EXPENSE
Compensation and employee benefits		1,431		140		1,571		1,268		119		1,387
Core processing		479		—		479		376		—		376
Premises and equipment		255		6		261		216		6		222
Professional fees		244		5		249		106		—		106
Postage and office supplies		24		1		25		14		1		15
FDIC premiums		59		—		59		34		—		34
Advertising		63		1		64		82		3		85
Director fees		54		1		55		37		—		37
Intangible asset amortization		—		39		39		—		40		40
Other		223		10		233		167		13		180
Total noninterest expense		2,832		203		3,035		2,300		182		2,482
Income (loss) before benefit for income taxes		29		50		79		(297)		66		(231)
BENEFIT FOR INCOME TAXES		(14)		—		(14)		(35)		—		(35)
Net income (loss)	$	43	$	50	$	93	$	(262)	$	66	$	(196)

	Six Months Ended June 30,
(In thousands)	2026						2025
	Seneca Savings		Financial Quest		Total		Seneca Savings		Financial Quest		Total
INTEREST INCOME
Total interest income	$	7,794	$	—	$	7,794	$	7,032	$	—	$	7,032
INTEREST EXPENSE
Total interest expense		2,742		—		2,742		2,673		—		2,673
Net interest income		5,052		—		5,052		4,359		—		4,359
Provision for credit losses available-for-sale securities		148		—		148		—		—		—
Provision for credit losses loans receivable		92		—		92		621		—		621
Net interest income after provision for credit losses		4,812		—		4,812		3,738		—		3,738
NONINTEREST INCOME
Service fees		74		—		74		65		—		65
Income from financial services		—		507		507		—		464		464
Fee income		510		16		526		355		16		371
Gain on sale of fixed assets		6		—		6		—		—		—
Earnings on deferred compensation plan assets		68		—		68		52		—		52
Net gains on sale of residential mortgage loans		49		—		49		65		—		65
Total noninterest income		707		523		1,230		537		480		1,017
NONINTEREST EXPENSE
Compensation and employee benefits		2,870		280		3,150		2,438		235		2,673
Core processing		942		—		942		711		—		711
Premises and equipment		559		12		571		433		12		445
Professional fees		403		20		423		163		—		163
Postage and office supplies		48		1		49		57		1		58
FDIC premiums		114		—		114		67		—		67
Advertising		154		2		156		179		4		183
Director fees		100		1		101		84		1		85
Intangible asset amortization		—		78		78		1		78		79
Other		395		27		422		321		24		345
Total noninterest expense		5,585		421		6,006		4,454		355		4,809
(Loss) Income before benefit for income taxes		(66)		102		36		(179)		125		(54)
BENEFIT FOR INCOME TAXES		(7)		—		(7)		(6)		—		(6)
Net (loss) income	$	(59)	$	102	$	43	$	(173)	$	125	$	(48)