BORROWED FUNDS

9 Months Ended

Sep. 30, 2025

Advance from Federal Home Loan Bank [Abstract]

The following tables summarize the Corporation's borrowed funds outstanding as of September 30, 2025 and December 31, 2024 (in thousands):


	September 30, 2025
	Balance		Maturity	Rate




Subordinated notes, net	$	44,002	June, 15, 2035	7.75	%


	December 31, 2024
	Balance		Maturity	Rate
FHLBNY overnight advances	$	109,110	January 2, 2025	4.69	%

On June 10, 2025, the Corporation issued $45.0 million of 7.75% fixed-to-floating rate subordinated notes due June 15, 2035 in a private offering (the "Notes"). The Notes bear interest at a fixed rate of 7.75% per year, payable semi-annually, for the first five years. From June 15, 2030 to the June 15, 2035 maturity date, the interest rate will adjust to a floating rate equal to a benchmark rate which is expected to be the then-current three-month term SOFR plus 415 basis points, payable quarterly. If the then three-month term SOFR is below zero, the three-month term SOFR for the note will be deemed zero. The Notes constitute unsecured and subordinated obligations of the Corporation and rank junior in right of payment to any senior indebtedness and obligations to general and secured creditors. Subject to limited exceptions, the Corporation cannot redeem the Notes before the fifth anniversary of the issuance date. Proceeds, net of debt issuance costs of $1.0 million, were $44.0 million. The Corporation intends to use the net proceeds from the issuance and sale of the Notes for general corporate purposes and to support regulatory capital ratios for growth initiatives. The Notes qualify at the holding company level as Tier 2 capital under the capital guidelines of the Federal Reserve Board, when applicable.

Collateral at the FHLBNY consisted of $245.9 million and $244.6 million of residential mortgage loans and home equity loans under a blanket lien arrangement as of September 30, 2025 and December 31, 2024, respectively. Based on this available collateral, the Corporation was eligible to borrow up to a total of $169.7 million as of September 30, 2025 at the FHLBNY, all of which was available.