BORROWED FUNDS

3 Months Ended

Mar. 31, 2026

Advance from Federal Home Loan Bank [Abstract]

The following tables summarize the Corporation's borrowed funds outstanding as of March 31, 2026 and December 31, 2025 (in thousands):


	March 31, 2026
	Balance		Maturity	Rate
FHLBNY overnight advances	$	15,710	April 1, 2026	3.89	%
FHLBNY term advances:

Fixed rate advance	30,000		May 12, 2026	3.83	%
Fixed rate advance	30,000		May 26, 2026	3.83	%
Subordinated notes, net	44,054		June, 15, 2035	7.75	%
Total borrowed funds	$	119,764


	December 31, 2025
	Balance		Maturity	Rate
FHLBNY overnight advances	$	87,110	January 2, 2026	3.96	%



Subordinated notes, net	44,028		June, 15, 2035	7.75	%
Total borrowed funds	$	131,138

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. Interest expense for the three months ended March 31, 2026 was $0.9 million.

Collateral at the FHLBNY consisted of $258.8 million and $255.1 million of residential mortgage loans and home equity loans under a blanket lien arrangement as of March 31, 2026 and December 31, 2025, respectively. Based on this available collateral, the Corporation was eligible to borrow up to a total of $182.7 million as of March 31, 2026 at the FHLBNY with $107.0 million available as of March 31, 2026.