# EDGAR Filing Document

**Accession Number:** 0001157647
**File Stem:** 0001999371-26-006029
**Filing Date:** 2026-3
**Character Count:** 237296
**Document Hash:** 33280c49a52ac357330430dab89e2faa
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001999371-26-006029.hdr.sgml**: 20260316

**ACCESSION NUMBER**: 0001999371-26-006029

**CONFORMED SUBMISSION TYPE**: 10-K/A

**PUBLIC DOCUMENT COUNT**: 126

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260316

**DATE AS OF CHANGE**: 20260316

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Western New England Bancorp, Inc.
- **CENTRAL INDEX KEY:** 0001157647
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 731627673
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-16767
- **FILM NUMBER:** 26757822

**BUSINESS ADDRESS:**
- **STREET 1:** 141 ELM STREET
- **CITY:** WESTFIELD
- **STATE:** MA
- **ZIP:** 01085
- **BUSINESS PHONE:** 413-568-1911

**MAIL ADDRESS:**
- **STREET 1:** 141 ELM STREET
- **CITY:** WESTFIELD
- **STATE:** MA
- **ZIP:** 01085

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WESTFIELD FINANCIAL INC
- **DATE OF NAME CHANGE:** 20010816

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

 **Washington, D.C. 20549**

**FORM 10-K/A**

**(Amendment No. 1)** 

**ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the fiscal year ended **December 31, 2025**

Commission File No.: **001-16767**

**Western New England Bancorp, Inc.**

 *(Exact name of registrant as specified in its charter)*

<u>Massachusetts</u> <u>73-1627673</u> <br> *(State or other jurisdiction of incorporation or organization)* *(I.R.S. Employer Identification No.)*

**141 Elm Street**, **Westfield**, **Massachusetts 01085**

 *(Address of principal executive offices, including zip code)*

**(413) 568-1911**

*(Registrant's telephone number, including area code)*

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

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;*(Title of each class)*  | &nbsp;&nbsp;*(Trading Symbol)*  | &nbsp;&nbsp;*(Name of each exchange on which registered)*  |
| &nbsp;&nbsp;Common Stock, $0.01 par value per share | &nbsp;&nbsp;WNEB | &nbsp;&nbsp;The NASDAQ Global Select Market |

---

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ☐ No ☒

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 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. (Check one):

Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth 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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐

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

The aggregate market value of the voting stock held by non-affiliates of the registrant as of June 30, 2025, was $189,164,244. This amount was based on the closing price as of June 30, 2025 on the NASDAQ Global Select Market ("NASDAQ") for a share of the registrant's common stock, which was $9.23 on June 30, 2025.

As of March 3, 2026, the registrant had 20,260,598 shares of common stock, $0.01 par value, issued and outstanding.

**DOCUMENTS INCORPORATED BY REFERENCE:**

Portions of the Proxy Statement for the 2026 Annual Meeting of Shareholders are incorporated by reference into Part III of this report.

**EXPLANATORY NOTE**

Western New England Bancorp, Inc. ("WNEB" or "Company") is filing this Amendment No. 1 (this "Amendment") to its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the "2025 Form 10-K") solely to include the Wolf & Company, P.C. (PCAOB ID No. 392) conformed signature in the document titled "Report of Independent Registered Public Accounting Firm" relating to its opinion on WNEB's financial statements (the "Financial Statement Audit Report"). The conformed signature in the Financial Statement Audit Report was inadvertently omitted in the 2025 Form 10-K. No other changes have been made to the 2025 Form 10-K.

This Amendment does not reflect events occurring after the filing of the 2025 Form 10-K, does not update disclosures contained in the 2025 Form 10-K and does not modify or amend the 2025 Form 10-K except as specifically described above. Pursuant to Rule 12b-15 of the Securities Exchange Act of 1934, as amended, this Amendment contains the complete text of each Item that is amended and certifications of the Company's Principal Executive Officer and Principal Financial Officer required under Items 302 and 906 of the Sarbanes-Oxley Act of 2002, as amended, dated as of the date of this Amendment, as well updated inline XBRL exhibits.

**Part II**

---

| | |
|:---|:---|
| **ITEM 8.** | **FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.** |

---

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors of

Western New England Bancorp, Inc.

***Opinion on the Consolidated Financial Statements***

 ****

We have audited the accompanying consolidated balance sheets of Western New England Bancorp, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of net income, comprehensive income, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes to the consolidated financial statements (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated March 10, 2026 expressed an unqualified opinion on the effectiveness of the Company's internal controls over financial reporting.

***Basis for Opinion***

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

***Critical Audit Matter***

 ****

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the Company's Audit Committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate a opinion on the critical audit matter or on the accounts or disclosures to which it relates.

<u>Allowance for Credit Losses - Loans Evaluated on a Pooled Basis</u>

*Critical Audit Matter Description*

 

As described in Notes 1 and 3 to the financial statements, the Company has recorded an allowance for credit losses (ACL) for its loan portfolio in the amount of $20.3 million as of December 31, 2025, representing management's estimate of credit losses over the remaining expected life of the Company's loan portfolio as of that date. Management determined the amounts, and corresponding provision for credit losses expense for the year, pursuant to the application of Accounting Standards Codification Topic 326, *Financial Instruments - Credit Losses*.

The Company's methodology to determine its allowance for credit losses incorporates quantitative and qualitative assessments of its historical losses, current loan portfolio and economic conditions, the application of forecasted economic conditions, and related modeling. Management incorporates the use of third-party software to arrive at an expected life-of-loan loss amount based on discounted cash flow estimates at the loan level for material loan segments. The amount and timing of cash flows is determined using assumptions for probability of default and loss given default (PD/LGD); expected term; and forecasted economic factors. The results of these calculations are then qualitatively adjusted by management based on pool-specific attributes. We determined that performing procedures relating to these components of the Company's methodology is a critical audit matter.

The principal considerations for our determination are (i) the application of significant judgment and estimation on the part of management, which in turn led to a high degree of auditor judgment and subjectivity in performing procedures and evaluating audit evidence obtained, and (ii) significant audit effort was necessary in evaluating management's methodology, significant assumptions and calculations.

 

 

*How the Critical Audit Matter was Addressed in the Audit*

 

Following are some of the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company's measurement of the collectively evaluated ACL, including controls over the:

● Segmentation of loans into pools with similar risk characteristics

● Validation of the third-party model and recalculation of model results

● Role of peer loss data and the appropriate peer group

● Completeness and accuracy of loan data

● Evaluation of modeling assumptions including the economic factors indicative of expected losses,&nbsp;&nbsp;&nbsp;&nbsp;length of the forecast period, and expected term of loans

● Development of qualitative adjustments to model results

In addition to the test of controls, addressing the above matters involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included, among others, reviewing the Company's procedures to validate the model, testing assumptions used in the calculation of discounted cash flows, testing management's process for determining the qualitative reserve component, and testing the completeness and accuracy of data used in the model.

We have served as the Company's auditor since 2004.

/s/ Wolf & Company, P.C.

Boston, Massachusetts

March 10, 2026

---

| |
|:---|
| **WESTERN NEW ENGLAND BANCORP, INC., AND SUBSIDIARIES** |
| **CONSOLIDATED BALANCE SHEETS** |
| (Dollars in thousands, except share data) |

---

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** |  |  |
| Cash and due from banks | $19890 | $18824 |
| Federal funds sold | 2236 | 9264 |
| Interest-bearing deposits and other short-term investments | 18255 | 38362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash and cash equivalents | 40381 | 66450 |
| Securities available-for-sale, at fair value (Amortized cost of $198,194 at December 31, 2025 and $191,940 at December 31, 2024) | 175800 | 160704 |
| Securities held-to-maturity, at amortized cost (Fair value of $158,504 at December 31, 2025 and $165,606 at December 31, 2024) | 188800 | 205036 |
| Marketable equity securities, at fair value | 632 | 397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | 365232 | 366137 |
| Federal Home Loan Bank stock and other restricted stock, at amortized cost | 5359 | 5818 |
| Total Loans | 2183592 | 2070189 |
| Less: Allowance for credit losses | (20297) | (19529) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans | 2163295 | 2050660 |
| Premises and equipment, net  | 23345 | 24421 |
| Accrued interest receivable | 8783 | 8468 |
| Bank-owned life insurance | 79019 | 77056 |
| Deferred tax asset, net | 12716 | 13997 |
| Goodwill | 12487 | 12487 |
| Core deposit intangible | 1063 | 1438 |
| Other assets | 24800 | 26158 |
| TOTAL ASSETS | $2736480 | $2653090 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;Non-interest-bearing deposits | $594516 | $565620 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 1766392 | 1697027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 2360908 | 2262647 |
| Borrowings: |  |  |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | 13270 | 5390 |
| &nbsp;&nbsp;&nbsp;Long-term debt | 73000 | 98000 |
| &nbsp;&nbsp;&nbsp;Subordinated debt | 19790 | 19751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total borrowings | 106060 | 123141 |
| Securities pending settlement | 242 | 8622 |
| Other liabilities | 21633 | 22770 |
| TOTAL LIABILITIES | 2488843 | 2417180 |
| SHAREHOLDERS' EQUITY: |  |  |
| Preferred stock - $0.01 par value, 5,000,000 shares authorized, none outstanding at December 31, 2025 and December 31, 2024 |  |  |
| Common stock - $0.01 par value, 75,000,000 shares authorized, 20,372,786 shares issued and outstanding at December 31, 2025; 20,875,713 shares issued and outstanding at December 31, 2024 | 204 | 209 |
| Additional paid-in capital | 114515 | 119326 |
| Unearned compensation – Employee Stock Ownership Plan ("ESOP") | (1443) | (1906) |
| Unearned compensation - Equity Incentive Plan | (1224) | (1190) |
| Retained earnings | 152302 | 142745 |
| Accumulated other comprehensive loss, net of tax | (16717) | (23274) |
| TOTAL SHAREHOLDERS' EQUITY | 247637 | 235910 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $2736480 | $2653090 |

---

See accompanying notes to consolidated financial statements.

---

| |
|:---|
| **WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED STATEMENTS OF NET INCOME** |
| (Dollars in thousands, except per share data) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Interest and dividend income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential and commercial real estate loans | $91249 | $85426 | $77964 |
| &nbsp;&nbsp;&nbsp;Commercial and industrial loans | 13850 | 13147 | 12865 |
| &nbsp;&nbsp;&nbsp;Consumer loans | 280 | 325 | 340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income from loans | 105379 | 98898 | 91169 |
| &nbsp;&nbsp;&nbsp;Investment securities, taxable | 10195 | 8633 | 8241 |
| &nbsp;&nbsp;&nbsp;Investment securities, tax-exempt |  | 3 | 7 |
| &nbsp;&nbsp;&nbsp;Marketable equity securities | 20 | 13 | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income from investment securities | 10215 | 8649 | 8370 |
| &nbsp;&nbsp;&nbsp;Other investments | 690 | 687 | 558 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 2335 | 1598 | 1021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income from cash and cash equivalents | 3025 | 2285 | 1579 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income | 118619 | 109832 | 101118 |
| Interest expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 42512 | 42236 | 26649 |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | 225 | 600 | 1589 |
| &nbsp;&nbsp;&nbsp;Long-term debt | 4769 | 6164 | 3957 |
| &nbsp;&nbsp;&nbsp;Subordinated debt | 1016 | 1015 | 1014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 48522 | 50015 | 33209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest and dividend income | 70097 | 59817 | 67909 |
| Provision for (reversal of) credit losses | 335 | (665) | 872 |
| Net interest and dividend income after provision for (reversal of) credit losses | 69762 | 60482 | 67037 |
| Non-interest income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Service charges and fees | 9917 | 9202 | 8856 |
| &nbsp;&nbsp;&nbsp;Income from bank-owned life insurance | 1963 | 1911 | 1820 |
| &nbsp;&nbsp;&nbsp;Bank-owned life insurance death benefit |  |  | 778 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of premises and equipment |  | (6) | (3) |
| &nbsp;&nbsp;&nbsp;Gain on sale of mortgages | 11 | 235 |  |
| &nbsp;&nbsp;&nbsp;Net unrealized gain (loss) on marketable equity securities | 35 | 13 | (1) |
| &nbsp;&nbsp;&nbsp;Gain on non-marketable equity investments | 243 | 1287 | 590 |
| &nbsp;&nbsp;&nbsp;Loss on defined benefit plan termination |  |  | (1143) |
| &nbsp;&nbsp;&nbsp;Other income | 347 | 261 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | 12516 | 12903 | 10897 |
| Non-interest expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and employee benefits | 35826 | 32786 | 32380 |
| &nbsp;&nbsp;&nbsp;Occupancy | 5226 | 5237 | 5046 |
| &nbsp;&nbsp;&nbsp;Furniture and equipment | 1868 | 1955 | 1954 |
| &nbsp;&nbsp;&nbsp;Data processing | 3630 | 3477 | 3157 |
| &nbsp;&nbsp;&nbsp;Software | 2643 | 2519 | 2311 |
| &nbsp;&nbsp;&nbsp;Debit card and ATM processing expense | 2483 | 2437 | 2139 |
| &nbsp;&nbsp;&nbsp;Professional fees | 2017 | 2161 | 2732 |
| &nbsp;&nbsp;&nbsp;FDIC insurance assessment | 1604 | 1460 | 1321 |
| &nbsp;&nbsp;&nbsp;Advertising | 1654 | 1269 | 1495 |
| &nbsp;&nbsp;&nbsp;Other expenses | 5537 | 5127 | 5815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | 62488 | 58428 | 58350 |
| Income before income taxes | 19790 | 14957 | 19584 |
| Income tax provision | 4521 | 3291 | 4516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $15269 | $11666 | $15068 |
| Earnings per common share: |  |  |  |
| Basic earnings per share | $0.76 | $0.56 | $0.70 |
| Weighted average basic shares outstanding | 20194877 | 20899573 | 21535888 |
| Diluted earnings per share | $0.75 | $0.56 | $0.70 |
| Weighted average diluted shares outstanding | 20321755 | 21016358 | 21610329 |
| Dividends per share | $0.28 | $0.28 | $0.28 |

---

See accompanying notes to consolidated financial statements.

---

| |
|:---|
| **WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** |
| (Dollars in thousands) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Net income | $15269 | $11666 | $15068 |
| Other comprehensive income (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;Securities available-for-sale: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized holding gain (loss) | 8842 | (2070) | 2993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax effect | (2285) | 540 | (775) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net-of-tax amount | 6557 | (1530) | 2218 |
| Defined benefit pension plan: |  |  |  |
| &nbsp;&nbsp;&nbsp;Gains arising during the period |  |  | 358 |
| &nbsp;&nbsp;&nbsp;Reclassification adjustment for amounts realized in income<sup>(1)</sup> |  |  | 1143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net amount |  |  | 1501 |
| &nbsp;&nbsp;&nbsp;Tax effect |  |  | (421) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net-of-tax amount |  |  | 1080 |
| Other comprehensive income (loss) | 6557 | (1530) | 3298 |
| **Comprehensive income** | $21826 | $10136 | $18366 |

---

(1) Amount
represents the reclassification of defined benefit plan termination realized in income and has been recognized as a component
of non-interest income. Income tax effects associated with the reclassification adjustment were $321,000 for the year
ended December 31, 2023. There were no tax effects applicable to reclassification adjustments for the years ended 2025 and 2024.

See accompanying notes to consolidated financial statements.

**WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

**YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023**

(Dollars in thousands, except share data)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | | | |
|  | **Shares** | **Par Value** | <br>**Additional Paid-in Capital** | <br>**Unearned Compensation- ESOP** | **Unearned**<br>**Compensation- Equity Incentive Plan** | <br>**Retained Earnings** | <br>**Accumulated Other Comprehensive Loss** | <br>**Total** |
| **BALANCE AT DECEMBER 31, 2022** | 22216789 | $222 | $128899 | $(2906) | $(1012) | $127982 | $(25042) | $228143 |
| &nbsp;&nbsp;&nbsp;Cumulative effect accounting adjustment<sup>(1)</sup> |  |  |  |  |  | 9 |  | 9 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  |  | 15068 |  | 15068 |
| &nbsp;&nbsp;&nbsp;Comprehensive income |  |  |  |  |  |  | 3298 | 3298 |
| &nbsp;&nbsp;&nbsp;Common stock held by ESOP committed to be released (74,993 shares) |  |  | 50 | 512 |  |  |  | 562 |
| &nbsp;&nbsp;&nbsp;Forfeited equity incentive plan shares (4,219 shares) |  |  | (40) |  | 40 |  |  |  |
| &nbsp;&nbsp;&nbsp;Forfeited equity incentive plan shares reissued (22,503 shares) |  |  | 207 |  | (207) |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock repurchased | (686436) | (6) | (5016) |  |  |  |  | (5022) |
| &nbsp;&nbsp;&nbsp;Share-based compensation - equity incentive plan |  |  |  |  | 1417 |  |  | 1417 |
| &nbsp;&nbsp;&nbsp;Issuance of common stock in connection with equity incentive plan | 136454 | 1 | 1348 |  | (1349) |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash dividends declared and paid on common stock ($0.28 per share) |  |  |  |  |  | (6066) |  | (6066) |
| **BALANCE AT DECEMBER 31, 2023** | 21666807 | $217 | $125448 | $(2394) | $(1111) | $136993 | $(21744) | $237409 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  |  | 11666 |  | 11666 |
| &nbsp;&nbsp;&nbsp;Comprehensive loss |  |  |  |  |  |  | (1530) | (1530) |
| &nbsp;&nbsp;&nbsp;Common stock held by ESOP committed to be released (71,240 shares) |  |  | 84 | 488 |  |  |  | 572 |
| &nbsp;&nbsp;&nbsp;Forfeited equity incentive plan shares (2,384 shares) |  |  | (20) |  | 20 |  |  |  |
| &nbsp;&nbsp;&nbsp;Forfeited equity incentive plan shares reissued (4,219 shares) |  |  | 35 |  | (35) |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock repurchased | (973924) | (10) | (7752) |  |  |  |  | (7762) |
| &nbsp;&nbsp;&nbsp;Share-based compensation - equity incentive plan |  |  |  |  | 1469 |  |  | 1469 |
| &nbsp;&nbsp;&nbsp;Issuance of common stock in connection with equity incentive plan | 182830 | 2 | 1531 |  | (1533) |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash dividends declared and paid on common stock ($0.28 per share) |  |  |  |  |  | (5914) |  | (5914) |
| **BALANCE AT DECEMBER 31, 2024** | 20875713 | $209 | $119326 | $(1906) | $(1190) | $142745 | $(23274) | $235910 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  |  | 15269 |  | 15269 |
| &nbsp;&nbsp;&nbsp;Comprehensive income |  |  |  |  |  |  | 6557 | 6557 |
| &nbsp;&nbsp;&nbsp;Common stock held by ESOP committed to be released (67,377 shares) |  |  | 242 | 463 |  |  |  | 705 |
| &nbsp;&nbsp;&nbsp;Share-based compensation - equity incentive plan |  |  |  |  | 1084 |  |  | 1084 |
| &nbsp;&nbsp;&nbsp;Forfeited equity incentive plan shares (38,269 shares) |  |  | (347) |  | 347 |  |  |  |
| &nbsp;&nbsp;&nbsp;Forfeited equity incentive plan shares reissued (30,697 shares) |  |  | 286 |  | (286) |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock repurchased | (629542) | (6) | (6170) |  |  |  |  | (6176) |
| &nbsp;&nbsp;&nbsp;Issuance of common stock in connection with equity incentive plan | 126615 | 1 | 1178 |  | (1179) |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash dividends declared and paid on common stock ($0.28 per share) |  |  |  |  |  | (5712) |  | (5712) |
| **BALANCE AT DECEMBER 31, 2025** | 20372786 | $204 | $114515 | $(1443) | $(1224) | $152302 | $(16717) | $247637 |

---

See accompanying notes to consolidated financial statements.

(1) Represents
gross transition adjustment amount of $13,000 , net of taxes of $4,000 , to reflect the cumulative impact on retained earnings pursuant
to the Company's adoption of Accounting Standards Update ("ASU") 2016-13 *Financial Instruments-Credit Losses on Financial Instruments* and relevant amendments.

**WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(Dollars in thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $15269 | $11666 | $15068 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (reversal of) credit losses | 335 | (665) | 872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization of premises and equipment | 2109 | 2230 | 2219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net amortization (accretion) of purchase accounting adjustments | 7 | (39) | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of core deposit intangible | 375 | 375 | 375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net amortization of premiums and discounts on securities and mortgage loans | 1001 | 1187 | 1267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net amortization of deferred costs on mortgage loans | 394 | 490 | 497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net amortization of premiums on subordinated debt | 39 | 39 | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 1084 | 1469 | 1417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ESOP expense | 705 | 572 | 562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on mortgage banking activities | (11) | (235) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (gain) loss on marketable equity securities | (35) | (13) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of premises and equipment |  | 6 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on bank-owned life insurance death benefit |  |  | (778) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax (benefit) provision | (1002) | 178 | 191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from bank-owned life insurance | (1963) | (1911) | (1820) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | (315) | 60 | (388) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 345 | 133 | (968) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (124) | (3372) | (3879) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 18213 | 12170 | 14773 |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of securities held-to-maturity |  | (1100) | (7701) |
| &nbsp;&nbsp;&nbsp;Proceeds from calls, maturities, and principal collections of securities held-to-maturity | 15879 | 19022 | 14090 |
| &nbsp;&nbsp;&nbsp;Purchases of securities available-for-sale | (31600) | (32771) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from calls, maturities, and principal collections of securities available-for-sale | 16259 | 14804 | 12047 |
| &nbsp;&nbsp;&nbsp;Purchase of marketable equity securities | (201) | (174) | (196) |
| &nbsp;&nbsp;&nbsp;Proceeds from redemption and sales of marketable equity securities |  |  | 6237 |
| &nbsp;&nbsp;&nbsp;Net loan originations and principal payments | (113337) | (63475) | (37023) |
| &nbsp;&nbsp;&nbsp;Redemption (purchase) of Federal Home Loan Bank of Boston stock | 459 | (2111) | (355) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of portfolio residential real estate loans |  | 20333 |  |
| &nbsp;&nbsp;&nbsp;Purchases of premises and equipment | (1073) | (1196) | (2902) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of premises and equipment |  | 74 | 18 |
| &nbsp;&nbsp;&nbsp;Proceeds from payout on bank-owned life insurance |  |  | 2079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (113614) | (46594) | (13706) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in deposits | 98261 | 118903 | (85699) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in short-term borrowings | 7880 | (10710) | (25250) |
| &nbsp;&nbsp;&nbsp;Repayment of long-term debt | (25000) | (120646) | (532) |
| &nbsp;&nbsp;&nbsp;Proceeds from long-term debt |  | 98000 | 120000 |
| &nbsp;&nbsp;&nbsp;Cash dividends paid | (5712) | (5914) | (6066) |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock | (6097) | (7599) | (5022) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 69332 | 72034 | (2569) |
| **NET CHANGE IN CASH AND CASH EQUIVALENTS:** | (26069) | 37610 | (1502) |
| &nbsp;&nbsp;&nbsp;Beginning of year | 66450 | 28840 | 30342 |
| &nbsp;&nbsp;&nbsp;End of year | $40381 | $66450 | $28840 |
| **Supplemental cash flow information:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Available-for-sale securities purchases pending settlement | $(8459) | $8459 | $— |
| &nbsp;&nbsp;&nbsp;Net change in cash due to broker for common stock repurchased | 79 | 163 |  |

---

See the accompanying notes to consolidated financial statements.

**WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023**

**1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Nature of Operations and Basis of Presentation**. Western New England Bancorp, Inc. ("Western New England Bancorp," "WNEB," "Company," "we," or "us") is a Massachusetts-chartered stock holding company for Westfield Bank, a federally-chartered savings bank ("Bank").

The Bank operates 25 banking offices in Hampden County and Hampshire County in western Massachusetts and the Capital Region in Connecticut, and its primary sources of revenue are interest income from loans as well as interest income from investment securities. The West Hartford Financial Services Center serves as the Company's Connecticut hub, housing Commercial Lending, Cash Management and a Mortgage Loan Officer. The Bank's deposits are insured up to the maximum Federal Deposit Insurance Corporation ("FDIC") coverage limits.

**Wholly-owned Subsidiaries**. Elm Street Securities Corporation, WFD Securities, Inc. and CSB Colts, Inc., are Massachusetts chartered securities corporations, formed for the primary purpose of holding qualified securities. WB Real Estate Holdings, LLC, is a Massachusetts-chartered limited liability company that holds real property acquired as security for debts previously contracted by the Bank.

**Principles of Consolidation**. The consolidated financial statements include the accounts of Western New England Bancorp, the Bank, CSB Colts, Inc., Elm Street Securities Corporation, WB Real Estate Holdings, LLC and WFD Securities, Inc. All material intercompany balances and transactions have been eliminated in consolidation.

**Estimates**. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses for each. Actual results could differ from those estimates. An estimate that is particularly susceptible to significant change in the near-term relates to the determination of the allowance for credit losses.

**Reclassifications.** Amounts in the prior year financial statements are reclassified when necessary to conform to the current year's presentation.

**Significant Group Concentrations of Credit Risk**. Most of the Company's lending activities are with customers located within the New England region of the country. The Company does not have any significant concentrations to any one industry or customer.

**Cash and Cash Equivalents**. We define cash on hand, cash due from banks, federal funds sold and interest-bearing deposits having an original maturity of 90 days or less as cash and cash equivalents.

**Securities and Mortgage-Backed Securities**. Investments in debt securities, including mortgage-backed securities, which management has the positive intent and ability to hold until maturity are classified as held to maturity and are carried at amortized cost. Investments in debt securities, including mortgage-backed securities, which have been identified as assets for which there is not a positive intent to hold to maturity are classified as available-for-sale and are carried at fair value with unrealized gains and losses, net of income taxes, reported as a separate component of comprehensive income (loss). Marketable equity securities are measured at fair value with changes in fair value reported on the Company's consolidated statements of net income as a component of non-interest income, regardless of whether such gains and losses are realized. We do not acquire investment securities and mortgage-backed securities for purposes of engaging in trading activities.

Realized gains and losses on sales of investment securities and mortgage-backed securities are computed using the specific identification method and are included in non-interest income on the trade date. The amortization of premiums and accretion of discounts are determined by using the level yield method to the maturity date, except that premiums are amortized to the earliest call date or maturity.

Allowance for Credit Losses – Securities Available-for-Sale

The Company measures expected credit losses on debt securities available-for-sale based upon the gain or loss position of the security. For debt securities available-for-sale in an unrealized loss position which the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell the security before recovery of the Company's amortized cost, the Company evaluates qualitative criteria to determine any expected loss. This includes among other items the financial health of, and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. The Company also evaluates quantitative criteria including determining whether there has been an adverse change in expected future cash flows of the security. Securities available-for-sale which are guaranteed by government agencies do not currently have an allowance for credit loss as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. In assessing the Company's investments in government-sponsored and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise; Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), Federal Farm Credit Bank ("FFCB"), or Federal Home Loan Bank ("FHLB"). Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company's investments. The Company will evaluate this position no less than annually, however, certain items which may cause the Company to change this methodology include legislative changes that remove a government-sponsored enterprise's ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government's implicit guarantee on such securities. If the Company does not expect to recover the entire amortized cost basis of the security, an allowance for credit losses would be recorded, with a related charge to earnings. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the debt security before recovery of its amortized cost basis, the Company recognizes the entire difference between the amortized cost basis of the security and its fair value in earnings. Any impairment that has not been recorded through an allowance for credit loss is recognized in other comprehensive income.

Allowance for Credit Losses – Securities Held-to-Maturity

The Company measures expected credit losses on debt securities held-to-maturity on a collective basis by security type and risk rating where available. The reserve for each pool is calculated based on a Probability of Default/Loss Given Default basis taking into consideration the expected life of each security. Held-to-maturity securities which are issued by the United States Treasury or are guaranteed by government agencies do not currently have an allowance for credit loss as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. In assessing the Company's investments in government-sponsored and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise; FHLMC, FNMA, FFCB, or FHLB. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company's investments. The Company will evaluate this position no less than annually, however, certain items which may cause the Company to change this methodology include legislative changes that remove a government-sponsored enterprise's ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government's implicit guarantee on such securities. Any expected credit losses on securities held-to-maturity would be presented as an allowance for credit loss.

**Non-marketable Equity Securities.** Investments in equity securities without readily determinable fair values are measured at cost, less any impairment, with re-measurement to fair value when there are observable price changes. Impairment is evaluated on such securities based on a qualitative assessment that considers various potential impairment indicators. Upon determining that an impairment exists, a loss is recognized for the amount by which the carrying value exceeds the fair value of the investment.

**Derivatives.** We enter into interest rate swap agreements as part of our interest-rate risk management strategy for certain assets and liabilities and not for speculative purposes. Based on our intended use for interest rate swaps, these are hedging instruments subject to hedge accounting provisions. Cash flow hedges are recorded at fair value in other assets or other liabilities within our balance sheets. Changes in the fair value of these cash flow hedges are initially recorded in accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the forecasted transaction affects earnings.

The Company's 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 derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income.

**Fair Value Hierarchy**. We group our assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

**Level 1:** Valuation is based on quoted prices in active markets for identical assets. Level 1 assets generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets.

**Level 2:** Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities.

**Level 3:** Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

**Federal Home Loan Bank of Boston Stock**. The Bank, as a member of the FHLB system, is required to maintain an investment in capital stock of the FHLB of Boston. Based on the redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLB may declare dividends on the stock. Management reviews for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. As of December 31, 2025, no impairment has been recognized.

**Loans Held for Sale**. Loans originated and intended for sale in the secondary market are carried at the lower of amortized cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to non-interest income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold on the trade date and reported within non-interest income on the accompanying consolidated statements of net income.

**Loans Receivable**. Loans are recorded at the principal amount outstanding, adjusted for charge-offs, the allowance for credit losses, unearned premiums, discounts and deferred loan fees and costs. Interest on loans is calculated using the effective yield method on daily balances of the principal amount outstanding and is credited to income on the accrual basis to the extent it is deemed collectible. Our general policy is to discontinue the accrual of interest when principal or interest payments are delinquent 90 days or more based on the contractual terms of the loan, or earlier if the loan is considered impaired. Any unpaid amounts previously accrued on these loans are reversed from current period interest income. Subsequent cash receipts are applied to the outstanding principal balance or to interest income if, in the judgment of management, collection of the principal balance is not in question. Loans are returned to accrual status when they become current as to both principal and interest and when subsequent performance reduces the concern as to the collectability of principal and interest. Loan fees, discounts and premiums on purchased loans, and certain direct loan origination costs are deferred and the net fee or cost is recognized as an adjustment to interest income over the estimated average lives of the related loans.

**Allowance for Credit Losses**. The allowance for credit losses is an estimate of expected losses inherent within the Company's existing loans held for investment portfolio. The allowance for credit losses for loans held for investment, as reported in our consolidated balance sheet, is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries.

The loan loss estimation process involves procedures to appropriately consider the unique characteristics of loan portfolio segments, which consist of commercial real estate loans, residential real estate loans, commercial and industrial loans, and consumer loans. These segments are further disaggregated into loan classes, the level at which credit risk is monitored. For each of these pools, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The quantitative component of the Allowance for Credit Losses ("ACL") on loans is model-based and utilizes a forward-looking macroeconomic forecast. For commercial real estate loans, residential real estate loans, and commercial and industrial loans, the Company uses a discounted cash flow method, incorporating probability of default and loss given default forecasted based on statistically derived economic variable loss drivers, to estimate expected credit losses. This process includes estimates which involve modeling loss projections attributable to existing loan balances, and considering historical experience, current conditions, and future expectations for pools of loans over a reasonable and supportable forecast period. The historical information either experienced by the Company or by a selection of peer banks, when appropriate, is derived from a combination of recessionary and non-recessionary performance periods for which data is available. The expected loss estimates for the consumer loan segment are based on historical loss rates using the weighted average remaining maturity ("WARM") method.

**Commercial real estate loans**. Loans in this segment include owner occupied and non-owner occupied commercial real estate, multi-family dwellings, and income producing investment properties, as well as commercial construction loans for commercial development projects throughout New England. Typically, commercial real estate loans are secured by office buildings, apartment buildings, industrial properties, warehouses, retail facilities, hotels, assisted living facilities, and educational facilities. Collateral values are established by independent third-party appraisals and evaluations. Primary repayment sources for commercial real estate loans include operating income and cash flow generated by the real estate, sale of the real estate and, funds from any liquidation of the collateral. Under its lending guidelines, the Company generally requires a corporate or personal guarantee from individuals that hold material ownership in the borrowing entity. The underlying cash flows generated by the properties or operations can be adversely impacted by a downturn in the economy due to increased vacancy rates or diminished cash flows, which in turn, would have an effect on the credit quality in this segment. Management obtains financial information annually and continually monitors the cash flows of these loans.

**Residential real estate loans**. This portfolio segment consists of first mortgages secured by one-to-four family residential properties and home equity loans and home equity lines of credit secured by first or second mortgage on one-to-four family owner occupied properties. First mortgages may be underwritten to a maximum loan-to-value of 97% for owner occupied homes, 90% for second homes and 85% for investment properties. Mortgages with loan-to-values greater than 80% require private mortgage insurance. We do not grant subprime loans. Home equity loans and lines of credit are underwritten to a maximum combined loan-to-value of 85% of the appraised value of the property. Underwriting approval is dependent on review of the borrower's ability to repay principal and interest on a monthly basis, credit history, financial resources and the value of the collateral. Residential real estate loans are originated either for sale to investors or retained in the Company's loan portfolio. Decisions about whether to sell or retain residential real estate loans are made based on the interest rate, pricing for loans in the secondary market, and the Company's liquidity and capital needs. The overall health of the economy, including unemployment rates and housing pricing, will have an effect on the credit quality in this segment.

**Commercial and industrial loans**. The primary risk associated with commercial and industrial loans is the ability of borrowers to achieve business results and cash flows consistent with those projected at loan origination. Collateral frequently consists of a first lien position on business assets including, but not limited to, accounts receivable, inventory, and equipment. The primary repayment source is operating cash flow, followed by liquidation of assets. Under its lending guidelines, the Company generally requires a corporate or personal guarantee from individuals that hold material ownership in the borrowing entity. A weakened economy and resultant decreased consumer spending will have an effect on the credit quality in this segment.

**Consumer loans**. Loans in this segment are both secured and unsecured and repayment is dependent on the credit quality of the individual borrower.

Allowance for Credit Losses Methodology

In estimating the component of the allowance for credit losses for loans that share similar risk characteristics with other loans, such loans are segregated into loan classes. Loans are designated into loan classes based on loans pooled by product types and similar risk characteristics or areas of risk concentration. In determining the allowance for credit losses, we derive an estimated credit loss assumption from a model that categorizes loan pools based on loan type and purpose.

The discounted cash flow ("DCF") model calculates an expected loss percentage for each loan class by considering the probability of default, using life-of-loan analysis periods for the commercial and industrial, commercial real estate, residential real estate loan segments, and the historical severity of loss, based on the aggregate net lifetime losses incurred per loan class. The expected loss estimates for the consumer loan segment are based on historical loss rates using the remaining life method. The default and severity factors used to calculate the allowance for credit losses for loans that share similar risk characteristics with other loans are adjusted for differences between the historical period used to calculate historical default and loss severity rates and expected conditions over the remaining lives of the loans in the portfolio related to: (1) lending policies and procedures; (2) international, national, regional and local economic business conditions and developments that affect the collectability of the portfolio; (3) the nature and volume of the loan portfolio including the terms of the loans; (4) the experience, ability, and depth of the lending management and other relevant staff; (5) the volume and severity of past due and adversely classified loans and the volume of nonaccrual loans; (6) the quality of our loan review system and (7) the value of underlying collateral for collateralized loans. Additional factors include the existence and effect of any concentrations of credit, and changes in the level of such concentrations and the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio. Such factors are used to adjust the historical probabilities of default and severity of loss so that they reflect management expectation of future conditions based on a reasonable and supportable forecast. The Company uses regression analysis of historical internal and peer data to determine which variables are best suited to be economic variables utilized when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the economic variables.

For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over four quarters on a straight-line basis. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.

The company uses a WARM method to estimate the ACL for the consumer loan segment. Under this method, the historical average annual charge-off rate is applied to the weighted average remaining maturity of the loan portfolio, currently calculated at 2.5 years. This calculation is adjusted based on additional factors that include (1) lending policies and procedures; (2) international, national, regional and local economic business conditions and developments that affect the collectability of the portfolio; (3) the nature and volume of the loan portfolio including the terms of the loans; (4) the experience, ability, and depth of the lending management and other relevant staff; (5) the volume and severity of past due and adversely classified loans and the volume of nonaccrual loans; (6) the quality of our loan review system and (7) the value of underlying collateral for collateralized loans.

Individually evaluated financial assets

For a loan that does not share risk characteristics with other loans, expected credit loss is measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For these loans, we recognize expected credit loss equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs and deferred loan fees and costs), except when the loan is collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral.

Allowance for credit losses on off-balance sheet credit exposures, including unfunded loan commitments

The Company maintains a separate allowance for credit losses from off-balance-sheet credit exposures, including unfunded loan commitments, which is included in other liabilities on the balance sheet. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applying the loss factors used in the ACL methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. No credit loss estimate is reported for outstanding off-balance-sheet credit exposures that are unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as credit loss expense. Categories of off-balance sheet credit exposures correspond to the loan portfolio segments described above. Management evaluates the need for a reserve on unfunded loan commitments in a manner consistent with loans held for investment.

**Bank-owned Life Insurance.** Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received in excess of carrying value, are reflected in non-interest income on the consolidated statements of net income and are not subject to income taxes.

**Transfers and Servicing of Financial Assets**. Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from us, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

**Premises and Equipment**. Land is carried at cost. Buildings, furniture and equipment are stated at cost, less accumulated depreciation and amortization, computed on the straight-line method over the estimated useful lives of the assets, or the expected lease term, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. The estimated useful lives of the assets are as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;**Years** |
| &nbsp;&nbsp;Buildings | &nbsp;&nbsp;39 |
| &nbsp;&nbsp;Leasehold Improvements | &nbsp;&nbsp;5-20 |
| &nbsp;&nbsp;Furniture and Equipment | &nbsp;&nbsp;3-7 |

---

The cost of maintenance and repairs is charged to expense when incurred. Major expenditures for betterments are capitalized and depreciated.

**Other Real Estate Owned**. Other real estate owned ("OREO") represents property acquired through foreclosure or deeded to us in lieu of foreclosure. OREO is initially recorded at the estimated fair value of the real estate acquired, net of estimated selling costs, establishing a new cost basis. Initial write-downs are charged to the allowance for credit losses at the time the loan is transferred to OREO. Subsequent valuations are periodically performed by management and the carrying value is adjusted by a charge to expense to reflect any subsequent declines in the estimated fair value. Operating costs associated with OREO are expensed as incurred.

**Servicing**. The Company services mortgage loans for others. Mortgage servicing assets are recognized as separate assets at fair value when rights are acquired through purchase or retained through the sale of financial assets. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into service charges and fee income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to the amortized cost. Impairment is determined by stratifying rights by predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that the fair value is less than the capitalized amount for the stratum. Changes in the valuation allowance are reported in service charges and fee income.

Servicing fee income is recorded for fees earned for servicing loans, which is included in service charges and fee income. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned.

**Impairment of Long-lived Assets**. Long-lived assets, including premises and equipment and certain identifiable intangible assets that are held and used by the Company, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the asset is determined to be impaired, it is written down to its estimated fair value through a charge to earnings.

Goodwill is measured as the excess of the cost of a business combination over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is not amortized but rather assessed for impairment annually or more frequently if circumstances warrant.

Management has the option of first assessing qualitative factors, such as events and circumstances, to determine whether it is more likely than not, meaning a likelihood of more than 50%, the value of a reporting unit is less than its carrying amount. If, after considering all relevant events and circumstances, management determines it is not more likely than not the fair value of a reporting unit is less than its carrying amount, then performing an impairment test is unnecessary.

**Retirement Plans and Employee Benefits.** The Company maintains a tax-qualified defined contribution plan through a third party provider (the "401(k) Plan") that provides for deferral of federal and state income taxes on employee contributions allowed under Section 401(k) of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"). Participants may make pre-tax salary deferrals to the plan not to exceed the annual IRS limits. Effective January 1, 2023, the Company converted to a Safe Harbor 401(k) Plan. In addition to salary deferrals, the Company will match up to 100% of the first 4% of the participant's eligible compensation (for a total maximum employer matching contribution of 4% of a participant's eligible compensation). In addition, on an annual basis, the Company may make a discretionary profit share contribution to each participant.

**Share-based Compensation Plans**. We measure and recognize compensation cost relating to share-based payment transactions based on the grant-date fair value of the equity instruments issued. Share-based compensation is recognized over the period the employee is required to provide services for the award. Reductions in compensation expense associated with forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted based on actual forfeiture experience. We use a binomial option-pricing model to determine the fair value of the stock options granted.

**Employee Stock Ownership Plan**. Compensation expense for the Employee Stock Ownership Plan ("ESOP") is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. We recognize compensation expense ratably over the year based upon our estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders' equity in the consolidated balance sheets. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital.

**Leases**. The Company determines if an arrangement is a lease at inception. Operating leases are included within other assets and other liabilities in our consolidated balance sheets. Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

**Advertising Costs**. Advertising costs are accounted for using the accrual basis of accounting.

**Income Taxes**. We use the asset and liability method for income tax accounting, whereby, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance related to deferred tax assets is established when, in the judgment of management, it is more likely than not that all or a portion of such deferred tax assets will not be realized based on the available evidence including historical and projected taxable income. We do not have any uncertain tax positions at December 31, 2025 that require accrual or disclosure. We record interest and penalties as part of income tax expense.

**Earnings per Share.** Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. If rights to dividends on unvested awards are non-forfeitable, these unvested awards are considered outstanding in the computation of basic earnings per share. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by us relate to stock options and certain performance-based restricted stock awards and are determined using the treasury stock method. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. There were no anti-dilutive shares outstanding during the years ended December 31, 2025, 2024 and 2023.

Earnings per common share for the years ended December 31, 2025, 2024 and 2023 have been computed based on the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | (Dollars and shares in thousands) | (Dollars and shares in thousands) | (Dollars and shares in thousands) |
| Net income applicable to common stock | $15269 | $11666 | $15068 |
| Average number of common shares issued | 20583 | 21345 | 22037 |
| Less: Average unallocated ESOP shares | (194) | (264) | (338) |
| Less: Average unvested performance-based equity incentive plan shares | (194) | (181) | (163) |
| Average number of common shares outstanding used to calculate basic earnings per common share | 20195 | 20900 | 21536 |
| Effect of dilutive performance-based equity incentive plan shares | 127 | 116 | 74 |
| Average number of common shares outstanding used to calculate diluted earnings per common share | 20322 | 21016 | 21610 |
| Net income per share: |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic earnings per share | $0.76 | $0.56 | $0.70 |
| &nbsp;&nbsp;&nbsp;Diluted earnings per share | $0.75 | $0.56 | $0.70 |

---

**Comprehensive Income (Loss).**

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss).

The components of accumulated other comprehensive loss, included in shareholders' equity, are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| Net unrealized losses on securities available-for-sale | $(22394) | $(31236) |
| Tax effect | 5677 | 7962 |
| &nbsp;&nbsp;&nbsp;Net-of-tax amount | (16717) | (23274) |
| **Accumulated other comprehensive loss, net of tax** | $(16717) | $(23274) |

---

**Recent Accounting Pronouncements.**

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, *Segment Reporting – Improvements to Reportable Segment Disclosures* (Topic 280), which expands segment disclosure requirements for public entities to require disclosure of significant segment expenses and other segment items on an annual and interim basis. It also requires companies to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. This ASU, as amended, became effective for the Company in the consolidated financial statements for the year ended December 31, 2024 (see Note 18 – Segment) and did not have a material impact on the Company's consolidated financial statements. In addition, this ASU, as amended, was effective for interim periods beginning in 2025 and did not have a material impact on the Company's consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes—Improvements to Income Tax Disclosures* (Topic 740), which requires entities to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. On an annual basis, entities must disclose: (1) the amount of income taxes paid, net of refunds, disaggregated by federal, state, and foreign; and (2) the amount of income taxes paid, net of refunds, disaggregated by individual jurisdictions in which income taxes paid, net of refunds received, for amounts equal to or greater than 5% of total income taxes paid. Further, the amendments also require entities to disclose: (1) income or loss from continued operations before income tax expense (or benefit) disaggregated between domestic and foreign sources; and (2) income or loss from continued operations disaggregated by federal, state, and foreign sources. This ASU, as amended, became effective for the Company in the consolidated financial statements for the year ended December 31, 2025 (see Note 14 – Income Taxes) and did not have a material impact on the Company's consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures – Disaggregation of Income Statement Expenses* (Subtopic 220-40). ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 requires new financial statement disclosures in tabular form, disaggregating information about prescribed categories underlying any relevant income statement expense caption. The prescribed categories include, among other things, employee compensation, depreciation, and intangible asset amortization. Additionally, entities must disclose the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. This ASU is effective for the Company, on a prospective basis, for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027 and is not expected to have a material impact on the Company's consolidated financial statements.

**2.&nbsp;&nbsp;&nbsp;&nbsp; INVESTMENT SECURITIES**

The following tables summarize the amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2025 and December 31, 2024, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss on securities available-for-sale. The Company did not record an allowance for credit losses on its securities held-to-maturity portfolio as of December 31, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Fair Value** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Securities available-for-sale:** |  |  |  |  |
| Debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government-sponsored enterprise obligations | $18596 | $— | $(2103) | $16493 |
| &nbsp;&nbsp;&nbsp;Corporate bonds | 11000 | 155 | (207) | 10948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt securities | 29596 | 155 | (2310) | 27441 |
| Mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government-sponsored mortgage-backed securities | 162831 | 806 | (19936) | 143701 |
| &nbsp;&nbsp;&nbsp;U.S. government guaranteed mortgage-backed securities | 5767 |  | (1109) | 4658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total mortgage-backed securities | 168598 | 806 | (21045) | 148359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total securities available-for-sale** | 198194 | 961 | (23355) | 175800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Securities held-to-maturity:**<br>|  |  |  |  |
| Debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities | 5001 |  | (103) | 4898 |
| &nbsp;&nbsp;&nbsp;U.S. government guaranteed obligations | 1005 | 2 |  | 1007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt securities | 6006 | 2 | (103) | 5905 |
| Mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government-sponsored mortgage-backed securities | 182794 | 219 | (30414) | 152599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total mortgage-backed securities | 182794 | 219 | (30414) | 152599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total securities held-to-maturity** | 188800 | 221 | (30517) | 158504 |
| **Total**  | $386994 | $1182 | $(53872) | $334304 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Fair Value** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Securities available-for-sale:** |  |  |  |  |
| Debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government-sponsored enterprise obligations | $19424 | $— | $(2966) | $16458 |
| &nbsp;&nbsp;&nbsp;Corporate bonds | 5000 |  | (390) | 4610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt securities | 24424 |  | (3356) | 21068 |
| Mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government-sponsored mortgage-backed securities | 161313 |  | (26535) | 134778 |
| &nbsp;&nbsp;&nbsp;U.S. government guaranteed mortgage-backed securities | 6203 |  | (1345) | 4858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total mortgage-backed securities | 167516 |  | (27880) | 139636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total securities available-for-sale** | 191940 |  | (31236) | 160704 |
| **Securities held-to-maturity:** |  |  |  |  |
| Debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities | 5002 |  | (275) | 4727 |
| &nbsp;&nbsp;&nbsp;U.S. government guaranteed obligations | 1064 |  | (3) | 1061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt securities | 6066 |  | (278) | 5788 |
| Mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government-sponsored mortgage-backed securities | 198970 | 13 | (39165) | 159818 |
| &nbsp;&nbsp;&nbsp;Total mortgage-backed securities | 198970 | 13 | (39165) | 159818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total securities held-to-maturity** | 205036 | 13 | (39443) | 165606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total**  | $396976 | $13 | $(70679) | $326310 |

---

The following table presents the unrealized gains (losses) recognized on marketable equity securities for the years indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Net gains (losses) recognized during the year on marketable equity securities | $35 | $13 | $(1) |
| Net gains (losses) recognized during the year on equity securities sold during the year |  |  |  |
| **Unrealized gain (loss) recognized during the year on marketable equity securities still held at year end** | $35 | $13 | $(1) |

---

During the second quarter of 2023, $6.3 million in marketable equity securities was redeemed. As the marketable equity securities portfolio was marked to market through income monthly, the fund liquidation resulted in no gain or loss to the income statement. At December 31, 2025 and December 31, 2024, the balance of marketable equity securities was $632,000 and $397,000, respectively.

At December 31, 2025, U.S. Treasury securities with a fair value of $4.9 million, government-sponsored enterprise obligations with a fair value of $8.5 million and mortgage-backed securities with a fair value of $150.5 million were pledged to secure public deposits and for other purposes as required or permitted by law. The securities collateralizing public deposits are subject to fluctuations in fair value. We monitor the fair value of the collateral on a periodic basis, and pledge additional collateral if necessary based on changes in fair value of collateral or the balances of such deposits.

The amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2025, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Available-for-Sale** | **Available-for-Sale** | **Held-to-Maturity** | **Held-to-Maturity** |
|  | **Amortized Cost** | **Fair Value** | **Amortized Cost** | **Fair Value** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Debt securities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due in one year or less | $— | $— | $5001 | $4898 |
| &nbsp;&nbsp;&nbsp;Due after one year through five years | 9947 | 8852 |  |  |
| &nbsp;&nbsp;&nbsp;Due after five years through ten years | 17981 | 16927 |  |  |
| &nbsp;&nbsp;&nbsp;Due after ten years | 1668 | 1662 | 1005 | 1007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt securities | $29596 | $27441 | $6006 | $5905 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Available-for-Sale** | **Available-for-Sale** | **Held-to-Maturity** | **Held-to-Maturity** |
|  | **Amortized Cost** | **Fair Value** | **Amortized Cost** | **Fair Value** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Mortgage-backed securities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due after one year through five years | $2720 | $2697 | $— | $— |
| &nbsp;&nbsp;&nbsp;Due after five years through ten years | 3687 | 3563 | 1797 | 1744 |
| &nbsp;&nbsp;&nbsp;Due after ten years | 162191 | 142099 | 180997 | 150855 |
| &nbsp;&nbsp;&nbsp;Total mortgage-backed securities | 168598 | 148359 | 182794 | 152599 |
| **Total securities** | $198194 | $175800 | $188800 | $158504 |

---

There were no gross realized gains or losses on sales of securities available-for-sale for the years ended December 31, 2025, 2024 and 2023.

Accrued interest receivable on securities available-for-sale guaranteed by government agencies totaled $513,000 at December 31, 2025 and $472,000 at December 31, 2024, and is excluded from the estimate of credit losses. Accrued interest receivable on debt securities available-for-sale not guaranteed by government agencies totaled $244,000 at December 31, 2025 and $123,000 at December 31, 2024, and is excluded from the estimate of credit losses. There were no allowances for credit losses established on debt securities available-for-sale during the years ended December 31, 2025 and December 31, 2024.

At December 31, 2025 and 2024, there was one available-for-sale corporate bond that was rated below investment grade by one or more ratings agencies. The Company reviewed the financial strength of the corporate bond rated below investment grade at December 31, 2025 and has concluded that the amortized cost remains supported by the expected future cash flows of the securities.

Accrued interest receivable on securities held-to-maturity totaled $393,000 at December 31, 2025 and $430,000 at December 31, 2024, and is excluded from the estimate of credit losses. There were no allowances for credit losses established on securities held-to-maturity securities during the years ended December 31, 2025 and December 31, 2024.

The following tables summarize the gross unrealized losses and fair value of the Company's securities available-for-sale and held-to-maturity, segregated by the duration of their continuous unrealized loss positions at December 31, 2025 and 2024:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Less Than Twelve Months** | **Less Than Twelve Months** | **Less Than Twelve Months** | **Less Than Twelve Months** | **Over Twelve Months** | **Over Twelve Months** | **Over Twelve Months** | **Over Twelve Months** |
|  | **Number of Securities** | **Fair Value** | **Gross Unrealized Loss** | **Depreciation from Amortized Cost Basis (%)** | **Number of Securities** | **Fair Value** | **Gross Unrealized Loss** | **Depreciation from Amortized Cost Basis (%)** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Securities available-for-sale:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government-sponsored mortgage-backed securities | 1 | $1819 | $7 | 0.4% | 73 | $100750 | $19929 | 16.5% |
| &nbsp;&nbsp;&nbsp;U.S. government guaranteed mortgage-backed securities |  |  |  |  | 9 | 4658 | 1109 | 19.2 |
| &nbsp;&nbsp;&nbsp;Government-sponsored enterprise obligations | 1 | 1662 | 6 | 0.4 | 5 | 14831 | 2097 | 12.4 |
| &nbsp;&nbsp;&nbsp;Corporate bonds |  |  |  |  | 2 | 4793 | 207 | 4.1 |
| Total securities available-for-sale | 2 | 3481 | 13 |  | 89 | 125032 | 23342 |  |
| **Securities held-to-maturity:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities |  |  |  | —% | 1 | 4898 | 103 | 2.1% |
| &nbsp;&nbsp;&nbsp;Government-sponsored mortgage-backed securities |  |  |  |  | 36 | 141556 | 30414 | 17.7 |
| Total securities held-to-maturity |  |  |  |  | 37 | 146454 | 30517 |  |
| **Total securities** | 2 | $3481 | $13 |  | 126 | $271486 | $53859 |  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Less Than Twelve Months** | **Less Than Twelve Months** | **Less Than Twelve Months** | **Less Than Twelve Months** | **Over Twelve Months** | **Over Twelve Months** | **Over Twelve Months** | **Over Twelve Months** |
|  | **Number of Securities** | **Fair Value** | **Gross Unrealized Loss** | **Depreciation from Amortized Cost Basis (%)** | **Number of Securities** | **Fair Value** | **Gross Unrealized Loss** | **Depreciation from Amortized Cost Basis (%)** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Securities available-for-sale:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government-sponsored mortgage-backed securities | 9 | $33145 | $584 | 1.7% | 70 | $99529 | $25951 | 20.7% |
| &nbsp;&nbsp;&nbsp;U.S. government guaranteed mortgage-backed securities |  |  |  |  | 9 | 4858 | 1345 | 21.7 |
| &nbsp;&nbsp;&nbsp;Government-sponsored enterprise obligations | 3 | 4452 | 19 | 0.4 | 3 | 11988 | 2947 | 19.7 |
| &nbsp;&nbsp;&nbsp;Corporate bonds |  |  |  |  | 2 | 4610 | 390 | 7.8 |
| Total securities available-for-sale | 12 | 37597 | 603 |  | 84 | 120985 | 30633 |  |
| **Securities held-to-maturity:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities |  |  |  | —% | 1 | 4727 | 275 | 5.5% |
| &nbsp;&nbsp;&nbsp;U.S. government guaranteed obligations | 1 | 1061 | 3 | 0.3 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government-sponsored mortgage-backed securities | 4 | 9187 | 127 | 1.4 | 37 | 148992 | 39038 | 20.8 |
| Total securities held-to-maturity | 5 | 10248 | 130 |  | 38 | 153719 | 39313 |  |
| **Total securities** | 17 | $47845 | $733 |  | 122 | $274704 | $69946 |  |

---

The Company expects to recover its amortized cost basis on all securities in its available-for-sale and held-to-maturity portfolios. Furthermore, the Company does not intend to sell, nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of December 31, 2025, prior to this anticipated recovery. The decline in fair value on its available-for-sale and held-to-maturity portfolios is largely due to changes in interest rates and other market conditions and not due to credit quality issues. The issuers continue to make timely principal and interest payments on the securities and the fair value is expected to recover as the securities approach maturity. The Company's ability and intent to hold these securities until recovery is supported by the Company's stable capital and liquidity positions as well as its historically low portfolio turnover. The following description provides the number of investment positions in an unrealized loss position:

At December 31, 2025, the Company reported gross unrealized losses on the securities available-for-sale portfolio of $23.4 million, or 11.8% of the amortized cost basis of the securities available-for-sale, compared to gross unrealized losses of $31.2 million, or 16.2% of the amortized cost basis of the securities available-for-sale at December 31, 2024. At December 31, 2025, there were 91 securities available-for-sale in which the fair value was less than the amortized cost, compared to 96 securities available-for-sale at December 31, 2024.

At December 31, 2025, the Company reported gross unrealized losses on the securities held-to-maturity portfolio of $30.5 million, or 16.2%, of the amortized cost basis of the securities held-to-maturity portfolio, compared to gross unrealized losses of $39.4 million, or 19.2% of the amortized cost basis of the securities held-to-maturity at December 31, 2024. At December 31, 2025, there 37 securities held-to-maturity in which the fair value was less than the amortized cost, compared to 43 securities held-to-maturity at December 31, 2024.

**3.&nbsp;&nbsp;&nbsp;&nbsp; LOANS AND ALLOWANCE FOR CREDIT LOSSES**

The following table presents the summary of the loan portfolio by the major classification of the loan at the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| Commercial real estate: |  |  |
| &nbsp;&nbsp;&nbsp;Non-owner occupied | $900513 | $880828 |
| &nbsp;&nbsp;&nbsp;Owner occupied | 198550 | 194904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate | 1099063 | 1075732 |
| Residential real estate:  |  |  |
| &nbsp;&nbsp;&nbsp;Residential one-to-four family | 719070 | 653802 |
| &nbsp;&nbsp;&nbsp;Home equity | 137801 | 121857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total residential real estate | 856871 | 775659 |
| Commercial and industrial | 221790 | 211656 |
| Consumer | 2929 | 4391 |
| Total gross loans | 2180653 | 2067438 |
| Plus: Unearned premiums and deferred loan fees and costs, net | 2939 | 2751 |
| Less: Allowance for credit losses | (20297) | (19529) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans | $2163295 | $2050660 |

---

Lending activities primarily consist of commercial real estate loans, commercial and industrial loans, residential real estate loans, and to a lesser degree, consumer loans.

**Loans Pledged as Collateral.** 

At December 31, 2025 and December 31, 2024, the carrying value of eligible loans pledged as collateral to support borrowing capacity at the FHLB were $932.3 million and $906.0 million, respectively. The outstanding balance of FHLB advances was $83.0 million and $98.0 million at December 31, 2025 and December 31, 2024, respectively.

At December 31, 2025 and December 31, 2024, the carrying value of eligible loans pledged as collateral to support borrowing capacity at the Federal Reserve Bank ("FRB") was $307.3 million and $377.0 million, respectively, with no outstanding borrowings at December 31, 2025 and at December 31, 2024.

**Loans Serviced for Others.**

The Company has transferred a portion of its originated commercial loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in our accompanying consolidated balance sheets. We continue to service the loans on behalf of the participating lenders. We share with participating lenders, on a pro-rata basis, any gains or losses that may result from a borrower's lack of compliance with contractual terms of the loan. At December 31, 2025 and December 31, 2024, the Company was servicing commercial loans participated out to various other institutions totaling $66.9 million and $65.3 million, respectively.

Residential real estate mortgages are originated by the Company both for its portfolio and for sale into the secondary market. The Company may sell its loans to institutional investors such as the FHLMC. Under loan sale and servicing agreements with the investor, the Company generally continues to service the residential real estate mortgages. The Company pays the investor an agreed upon rate on the loan, which is less than the interest rate received from the borrower. The Company retains the difference as a fee for servicing the residential real estate mortgages. The Company capitalizes mortgage servicing rights at their fair value upon sale of the related loans, amortizes the asset over the estimated life of the serviced loan, and periodically assesses the asset for impairment. The significant assumptions used by a third party to estimate the fair value of capitalized servicing rights at December 31, 2025, include weighted average prepayment speed for the portfolio using the Public Securities Association Standard Prepayment Model (188 PSA), average internal rate of return (10.01%), weighted average servicing fee (0.25%), and average cost to service loans ($83.18 per loan). The estimated fair value of capitalized servicing rights may vary significantly in subsequent periods primarily due to changing market interest rates, and their effect on prepayment speeds and discount rates.

At December 31, 2025 and December 31, 2024, the Company was servicing residential mortgage loans owned by investors totaling $77.1 million and $84.8 million, respectively. Servicing fee income of $204,000 and $189,000 was recorded for the years ended December 31, 2025 and December 31, 2024, respectively, and is included in service charges and fees on the consolidated statements of net income.

A summary of the activity in the balances of mortgage servicing rights follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| &nbsp;&nbsp;**Balance at the beginning of year:** | $436 | $422 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized mortgage servicing rights |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | (118) | (100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Balance at the end of year** | $318 | $436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fair value at the end of year** | $673 | $826 |

---

**Allowance for Credit Losses.**

The allowance for credit losses is an estimate of expected losses inherent within the Company's existing loans held for investment portfolio. The allowance for credit losses for loans held for investment, as reported in our consolidated balance sheet, is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Accrued interest receivable on loans held for investment was $7.6 million at December 31, 2025 and $7.4 million at December 31, 2024 and is excluded from the estimate of credit losses.

An analysis of changes in the allowance for credit losses for loans and off-balance sheet commitments by segment for the years ended December 31, 2025 and 2024 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Commercial Real Estate** | **Residential Real Estate** | **Commercial and Industrial** | **Consumer** | **Unallocated** | **Total** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Allowance for credit losses for loans** |  |  |  |  |  |  |
| **Balance at December 31, 2024** | $13677 | $3156 | $2477 | $219 | $— | $19529 |
| Provision for (reversal of) credit losses | 20 | 1068 | (833) | 41 |  | 296 |
| Charge-offs | (4) | (55) | (9) | (228) |  | (296) |
| Recoveries | 25 | 17 | 610 | 116 |  | 768 |
| **Balance at December 31, 2025** | $13718 | $4186 | $2245 | $148 | $— | $20297 |
| **Balance at December 31, 2023** | $15141 | $2548 | $2537 | $41 | $— | $20267 |
| Provision for (reversal of) credit losses | (1670) | 761 | (212) | 296 |  | (825) |
| Charge-offs | (46) | (185) | (65) | (228) |  | (524) |
| Recoveries | 252 | 32 | 217 | 110 |  | 611 |
| **Balance at December 31, 2024** | $13677 | $3156 | $2477 | $219 | $— | $19529 |
| **Balance at December 31, 2022** | $12199 | $4312 | $3160 | $245 | $15 | $19931 |
| Cumulative effect change in accounting principle | 3989 | (2518) | (75) | (199) | (15) | 1182 |
| Adjusted beginning balance | 16188 | 1794 | 3085 | 46 |  | 21113 |
| Provision for (reversal of) credit losses | (292) | 728 | 665 | 92 |  | 1193 |
| Charge-offs | (764) |  | (1561) | (185) |  | (2510) |
| Recoveries | 9 | 26 | 348 | 88 |  | 471 |
| **Balance at December 31, 2023** | $15141 | $2548 | $2537 | $41 | $— | $20267 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Commercial Real Estate** | **Residential Real Estate** | **Commercial and Industrial** | **Consumer** | **Unallocated** | **Total** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Allowance for credit losses for off-balance sheet exposures** |  |  |  |  |  |  |
| **Balance at December 31, 2024** | $456 | $256 | $45 | $— | $— | $757 |
| Provision for (reversal of) credit losses | 5 | 39 | (5) |  |  | 39 |
| **Balance at December 31, 2025** | $461 | $295 | $40 | $— | $— | $796 |
| **Balance at December 31, 2023** | $375 | $163 | $59 | $— | $— | $597 |
| Provision for (reversal of) credit losses | 81 | 93 | (14) |  |  | 160 |
| **Balance at December 31, 2024** | $456 | $256 | $45 | $— | $— | $757 |
| **Balance at December 31, 2022** | $— | $— | $— | $— | $— | $— |
| Cumulative effect of change in accounting principle | 611 | 267 | 40 |  |  | 918 |
| Provision for (reversal of) credit losses | (236) | (104) | 19 |  |  | (321) |
| **Balance at December 31, 2023** | $375 | $163 | $59 | $— | $— | $597 |

---

During the year ended December 31, 2025, the Company recorded a provision for credit losses of $335,000, compared to a reversal of credit losses of $665,000 during the twelve months ended December 31, 2024. The $1.0 million increase in the provision for credit losses was primarily due to an increase in total loans of $113.2 million, or 5.5%.

The provision for (reversal of) credit losses was determined by a number of factors: the continued strong credit performance of the Company's loan portfolio, changes in the loan portfolio mix and Management's consideration of existing economic conditions and the economic outlook from the Federal Reserve Bank's actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment and supportable forecast period.

**Past Due and Nonaccrual Loans.**

The following tables present an age analysis of past due loans as of the dates indicated:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **30 – 59 Days Past Due** | **60 – 89 Days Past Due** | **90 Days or More Past Due** | **Total** <br> **Past Due Loans**  | **Total**<br> **Current Loans**  | **Total** <br> **Loans**  | **Nonaccrual** <br> **Loans** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **<u>December 31, 2025</u>** |  |  |  |  |  |  |  |
| Commercial real estate: |  |  |  |  |  |  |  |
| Non-owner occupied | $— | $— | $— | $— | $900513 | $900513 | $135 |
| Owner occupied | 304 |  |  | 304 | 198246 | 198550 | 289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 304 |  |  | 304 | 1098759 | 1099063 | 424 |
| Residential real estate:  |  |  |  |  |  |  |  |
| Residential one-to-four family | 1127 | 503 | 546 | 2176 | 716894 | 719070 | 3779 |
| Home equity | 113 |  | 500 | 613 | 137188 | 137801 | 511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 1240 | 503 | 1046 | 2789 | 854082 | 856871 | 4290 |
| Commercial and industrial | 48 |  | 1 | 49 | 221741 | 221790 | 448 |
| Consumer | 3 |  |  | 3 | 2926 | 2929 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total loans** | $1595 | $503 | $1047 | $3145 | $2177508 | $2180653 | $5162 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **30 – 59 Days Past Due** | **60 – 89 Days Past Due** | **90 Days or More Past Due** | **Total** <br> **Past Due Loans**  | **Total**<br> **Current Loans** | **Total** <br> **Loans**  | **Nonaccrual Loans** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **<u>December 31, 2024</u>** |  |  |  |  |  |  |  |
| Commercial real estate: |  |  |  |  |  |  |  |
| Non-owner occupied | $285 | $— | $— | $285 | $880543 | $880828 | $— |
| Owner occupied |  |  |  |  | 194904 | 194904 | 330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 285 |  |  | 285 | 1075447 | 1075732 | 330 |
| Residential real estate:  |  |  |  |  |  |  |  |
| Residential one-to-four family | 1747 | 569 | 983 | 3299 | 650503 | 653802 | 3965 |
| Home equity | 810 | 213 | 317 | 1340 | 120517 | 121857 | 408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 2557 | 782 | 1300 | 4639 | 771020 | 775659 | 4373 |
| Commercial and industrial | 60 |  | 1 | 61 | 211595 | 211656 | 673 |
| Consumer | 10 |  |  | 10 | 4381 | 4391 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total loans** | $2912 | $782 | $1301 | $4995 | $2062443 | $2067438 | $5381 |

---

At December 31, 2025 and December 31, 2024, total past due loans totaled $3.1 million, or 0.14% of total loans, and $5.0 million, or 0.24% of total loans, respectively.

**Nonaccrual Loans.**

Accrual of interest on loans is generally discontinued when contractual payment of principal or interest becomes past due 90 days or, if in management's judgment, reasonable doubt exists as to the full timely collection of interest. Exceptions may be made if the loan has matured and is in the process of renewal or is well-secured and in the process of collection. When a loan is placed on nonaccrual status, interest accruals cease and uncollected accrued interest is reversed and charged against current interest income. Interest payments on nonaccrual loans are generally applied to principal. If collection of the principal is reasonably assured, interest payments are recognized as income on the cash basis. Loans are generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured and a consistent record of at least six consecutive months of performance has been achieved.

The following table is a summary of the Company's nonaccrual loans by major categories at December 31, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **For the Year Ended December 31, 2025** |
|  | **Nonaccrual Loans with Allowance for Credit Loss** | **Nonaccrual Loans Without Allowance for Credit Loss** | **Total** <br> **Nonaccrual Loans**  | **Accrued Interest Receivable Reversed from Income** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Commercial real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-owner occupied | $— | $135 | $135 | $8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Owner occupied |  | 289 | 289 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | 424 | 424 | 26 |
| Residential real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential one-to-four family |  | 3779 | 3779 | 161 |
| &nbsp;&nbsp;&nbsp;&nbsp;Home equity |  | 511 | 511 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | 4290 | 4290 | 202 |
| Commercial and industrial |  | 448 | 448 | 56 |
| Consumer |  |  |  |  |
| **Total loans** | $— | $5162 | $5162 | $284 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **For the Year Ended December 31, 2024** |
|  | **Nonaccrual Loans with Allowance for Credit Loss** | **Nonaccrual Loans Without Allowance for Credit Loss** | **Total** <br> **Nonaccrual Loans**  | **Accrued Interest Receivable Reversed from Income** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Commercial real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-owner occupied | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Owner occupied |  | 330 | 330 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | 330 | 330 |  |
| Residential real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential one-to-four family |  | 3965 | 3965 | 192 |
| &nbsp;&nbsp;&nbsp;&nbsp;Home equity |  | 408 | 408 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | 4373 | 4373 | 222 |
| Commercial and industrial |  | 673 | 673 | 151 |
| Consumer |  | 5 | 5 |  |
| **Total loans** | $— | $5381 | $5381 | $373 |

---

At December 31, 2025 and December 31, 2024, nonaccrual loans totaled $5.2 million, or 0.24% of total loans and $5.4 million, or 0.26% of total loans, respectively. The Company did not recognize any interest income on nonaccrual loans for the years ended December 31, 2025 and December 31, 2024. At December 31, 2025 and December 31, 2024, there were no commitments to lend additional funds to any borrower on nonaccrual status. At December 31, 2025 and December 31, 2024, there were no loans 90 or more days past due and still accruing interest. There was no other real estate owned at December 31, 2025 or December 31, 2024.

**Individually Evaluated Collateral Dependent Loans.**

Loans that do not share similar risk characteristics with loans that are pooled into portfolio segments are individually evaluated. A loan is considered collateral dependent when, based on current information and events, the borrower is experiencing financial difficulty and repayment, both principal and interest, is expected to be provided substantially through the operation or sale of the collateral. Loans that are rated Substandard, have a loan-to-value above 85% or have demonstrated a specific weakness (e.g., slow payment history, industry weakness, or other clear credit deterioration) may be considered for individual evaluation if they are determined not to share similar risk characteristics within the segment. Individually evaluated assets will be measured primarily using the collateral dependent financial asset practical expedient, although the discounted cash flow method may be used when management deems it more appropriate or collateral values cannot be supported. For individually evaluated assets, an ACL is determined separately for each financial asset. At December 31, 2025, the Company had $1.0 million in individually evaluated commercial loans, collateralized by business assets, and $4.9 million in individually evaluated real estate loans, collateralized by real estate property.

The following table summarizes the Company's individually evaluated collateral dependent loans by class as of the dates indicated:

---

| | | |
|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Recorded Investment** | **Related Allowance** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| **With no related allowance recorded:** |  |  |
| &nbsp;&nbsp;Commercial real estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-owner occupied | $307 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owner occupied | 331 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 638 |  |
| &nbsp;&nbsp;Residential real estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential one-to-four family | 3778 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity | 511 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 4289 |  |
| &nbsp;&nbsp;Commercial and industrial | 497 |  |
| &nbsp;&nbsp;Consumer |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans with no related allowance recorded | $5424 | $— |
| **With an allowance recorded:** |  |  |
| &nbsp;&nbsp;Commercial real estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-owner occupied | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Owner occupied |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  |
| &nbsp;&nbsp;Residential real estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential one-to-four family |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Home equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  |
| &nbsp;&nbsp;Commercial and industrial | 464 | 122 |
| &nbsp;&nbsp;Consumer |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans with an allowance recorded | $464 | $122 |
| &nbsp;&nbsp;**Total individually evaluated loans** | $5888 | $122 |

---

---

| | | |
|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Recorded Investment** | **Related Allowance** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| **With no related allowance recorded:** |  |  |
| &nbsp;&nbsp;Commercial real estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-owner occupied | $6956 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owner occupied | 1285 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 8241 |  |
| &nbsp;&nbsp;Residential real estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential one-to-four family | 4333 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity | 408 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 4741 |  |
| &nbsp;&nbsp;Commercial and industrial | 776 |  |
| &nbsp;&nbsp;Consumer |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans with no related allowance recorded | $13758 | $— |
| **With an allowance recorded:** |  |  |
| &nbsp;&nbsp;Commercial real estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-owner occupied | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Owner occupied |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  |
| &nbsp;&nbsp;Residential real estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential one-to-four family |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Home equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  |
| &nbsp;&nbsp;Commercial and industrial | 494 | 156 |
| &nbsp;&nbsp;Consumer |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans with an allowance recorded | $494 | $156 |
| &nbsp;&nbsp;**Total individually evaluated loans** | $14252 | $156 |

---

**Modified Loans to Borrowers Experiencing Financial Difficulty.** 

The Company will modify the contractual terms of loans to a borrower experiencing financial difficulties as a way to mitigate loss and comply with regulations regarding bankruptcy and discharge situations. Loans are designated as modified when, as part of an agreement to modify the original contractual terms of the loan as a result of financial difficulties of the borrower, the Company grants the borrower a concession on the terms that would not otherwise be considered. Typically, such concessions may consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, extension of additional credit based on receipt of adequate collateral, or a deferment or reduction of payments (principal or interest) which materially alters the Company's position or significantly extends the note's maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan's origination.

There were no loan modifications granted based on borrower financial difficulty during the years ended December 31, 2025 and December 31, 2024. During the years ended December 31, 2025 and December 31, 2024, no modified loans defaulted (defined as 30 days or more past due) within 12 months of restructuring. There were no charge-offs on modified loans during the years ended December 31, 2025 or 2024.

**Credit Quality Information.**

The Company monitors the credit quality of its loan portfolio by using internal risk ratings that are based on regulatory guidance. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company utilizes an eight-grade internal loan rating system for commercial real estate and commercial and industrial loans.

The grades assigned and definitions are as follows: loans graded excellent, above average, good are classified as "Pass" for grading purposes (risk ratings 1-4). All loans risk rated Special Mention (5), Substandard (6), Doubtful (7) and Loss (8) are listed on the Company's criticized report and are reviewed not less than on a quarterly basis to assess the level of risk and to ensure that appropriate actions are being taken to minimize potential loss exposure. In addition, the Company closely monitors classified loans, defined as Substandard, Doubtful, and Loss for signs of deterioration to mitigate the growth in nonaccrual loans, including performing additional due diligence, updating valuations and requiring additional financial reporting from the borrower. Loans identified as containing a loss are partially charged-off or fully charged-off. Performing residential real estate, home equity and consumer loans are grouped with "Pass" rated loans. Nonaccrual residential real estate, home equity and consumer loans are risk rated as "Substandard" and individually evaluated.

**Loans rated 1 – 4**: Loans rated 1-4 are classified as "Pass" and have quality metrics to support that the loan will be repaid according to the terms established and are not subject to adverse criticism as defined in regulatory guidance. Pass loans exhibit characteristics that represent acceptable risk and are not considered problem loans.

**Loans rated 5**: Loans rated 5 are classified as "Special Mention" and have potential weaknesses that deserve management's close attention. Special mention loans are currently performing but with potential weaknesses including adverse trends in borrower's operations, credit quality, financial strength, or possible collateral deficiency. Loans in this category are currently protected based on collateral and repayment capacity and do not constitute undesirable credit risk, but have potential weakness that may result in deterioration of the repayment process at some future date. Special Mention loans do not sufficiently expose the Company to warrant adverse classification.

**Loans rated 6**: Loans rated 6 are classified as "Substandard" and have an identified definitive weakness which may make full collection of contractual cash flows questionable and/or jeopardize the liquidation of the debt.

**Loans rated 7**: Loans rated 7 are classified as "Doubtful" and have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation of the loan highly questionable and improbable. The possibility of some loss is extremely high, but because of specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined.

**Loans rated 8**: Loans rated 8 are classified a "Loss" and are considered uncollectible and are charged to the allowance for credit losses. The loss classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset because recovery and collection time may be affected in the future.

On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate loans over $3 million and commercial and industrial loans over $1 million. On an ongoing basis, Management utilizes delinquency reports, interim customer financials, the criticized loan report and other loan reports to monitor credit quality and adjust risk ratings accordingly. In addition, at least on an annual basis, the Company contracts with an independent third-party to review the internal credit ratings assigned to loans in the commercial loan portfolio on a pre-determined schedule, based on the type, size, rating, and overall risk of the loan. During the course of its review, the third party examines a sample of loans, including new loans, existing relationships over certain dollar amounts and classified assets.

The following tables summarize the amortized cost basis by aggregate Pass and criticized categories of Special Mention and Substandard within the Company's internal risk rating system by year of origination as of December 31, 2025 and December 31, 2024. The tables also summarize gross charge-offs by year of origination for the years ended December 31, 2025 and December 31, 2024.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** |
|  | **Term Loan Origination by Year** | **Term Loan Origination by Year** | **Term Loan Origination by Year** | **Term Loan Origination by Year** | **Term Loan Origination by Year** | **Term Loan Origination by Year** | **Revolving Loans** | **Revolving Loans** | **Revolving Loans** |
|  | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Term Loans** | **Total** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **<u>Commercial Real Estate:</u>** |  |  |  |  |  |  |  |  |  |
| Pass (Rated 1- 4) | $83434 | $48533 | $50248 | $190369 | $224149 | $404143 | $75646 | $1620 | $1078142 |
| Special Mention (Rated 5) |  |  |  |  |  | 11397 |  |  | 11397 |
| Substandard (Rated 6) |  |  |  |  |  | 9524 |  |  | 9524 |
| **Total commercial real estate loans** | $83434 | $48533 | $50248 | $190369 | $224149 | $425064 | $75646 | $1620 | $1099063 |
| Current period gross charge-offs | $— | $— | $— | $— | $— | $4 | $— | $— | $4 |
| Payment Performance: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $83434 | $48533 | $50248 | $190369 | $224149 | $424640 | $75646 | $1620 | $1098639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual |  |  |  |  |  | 424 |  |  | 424 |
| **<u>Residential One-to-Four Family:</u>** |  |  |  |  |  |  |  |  |  |
| Pass | $103977 | $87661 | $55385 | $83428 | $81480 | $294238 | $8608 | $— | $714777 |
| Substandard |  |  | 348 |  | 660 | 3285 |  |  | 4293 |
| **Total residential one-to-four family** | $103977 | $87661 | $55733 | $83428 | $82140 | $297523 | $8608 | $— | $719070 |
| Current period gross charge-offs | $— | $— | $— | $— | $— | $20 | $— | $— | $20 |
| Payment Performance: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $103977 | $87661 | $55385 | $83428 | $81480 | $294752 | $8608 | $— | $715291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual |  |  | 348 |  | 660 | 2771 |  |  | 3779 |
| **<u>Home Equity:</u>** |  |  |  |  |  |  |  |  |  |
| Pass | $7816 | $7316 | $6491 | $6910 | $4571 | $13210 | $87770 | $3206 | $137290 |
| Substandard |  | 11 | 79 |  |  |  | 333 | 88 | 511 |
| **Total home equity loans** | $7816 | $7327 | $6570 | $6910 | $4571 | $13210 | $88103 | $3294 | $137801 |
| Current period gross charge-offs | $— | $— | $— | $— | $— | $— | $24 | $11 | $35 |
| Payment Performance: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $7816 | $7316 | $6491 | $6910 | $4571 | $13210 | $87770 | $3206 | $137290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual |  | 11 | 79 |  |  |  | 333 | 88 | 511 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** | **As of and Year Ended December 31, 2025** |
|  | **Term Loans Originated by Year** | **Term Loans Originated by Year** | **Term Loans Originated by Year** | **Term Loans Originated by Year** | **Term Loans Originated by Year** | **Term Loans Originated by Year** | **Revolving Loans** | **Revolving Loans** | **Revolving Loans** |
|  | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Term Loans** | **Total** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **<u>Commercial and Industrial:</u>** |  |  |  |  |  |  |  |  |  |
| Pass (Rated 1- 4) | $17603 | $33394 | $11776 | $23117 | $22220 | $25673 | $74015 | $58 | $207856 |
| Special Mention (Rated 5) |  |  | 19 |  | 72 |  | 5648 |  | 5739 |
| Substandard (Rated 6) |  |  | 5259 | 526 |  | 975 | 1435 |  | 8195 |
| **Total commercial and industrial loans** | $17603 | $33394 | $17054 | $23643 | $22292 | $26648 | $81098 | $58 | $221790 |
| Current period gross charge-offs | $— | $— | $— | $— | $— | $— | $— | $9 | $9 |
| Payment Performance: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $17603 | $33394 | $17054 | $23643 | $22292 | $26299 | $80999 | $58 | $221342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual |  |  |  |  |  | 349 | 99 |  | 448 |
| **<u>Consumer:</u>** |  |  |  |  |  |  |  |  |  |
| Pass | $405 | $514 | $698 | $313 | $63 | $85 | $851 | $— | $2929 |
| Substandard |  |  |  |  |  |  |  |  |  |
| **Total consumer loans** | $405 | $514 | $698 | $313 | $63 | $85 | $851 | $— | $2929 |
| Current period gross charge-offs | $152 | $— | $— | $— | $— | $6 | $— | $70 | $228 |
| Payment Performance: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $405 | $514 | $698 | $313 | $63 | $85 | $851 | $— | $2929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual |  |  |  |  |  |  |  |  |  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** |
|  | **Term Loan Origination by Year** | **Term Loan Origination by Year** | **Term Loan Origination by Year** | **Term Loan Origination by Year** | **Term Loan Origination by Year** | **Term Loan Origination by Year** | **Revolving Loans** | **Revolving Loans** | **Revolving Loans** |
|  | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Term Loans** | **Total** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **<u>Commercial Real Estate:</u>** |  |  |  |  |  |  |  |  |  |
| Pass (Rated 1- 4) | $51726 | $46105 | $175159 | $237531 | $108165 | $348564 | $84083 | $3391 | $1054724 |
| Special Mention (Rated 5) |  |  |  |  |  | 10104 | 134 |  | 10238 |
| Substandard (Rated 6) |  |  |  |  | 8166 | 2604 |  |  | 10770 |
| **Total commercial real estate loans** | $51726 | $46105 | $175159 | $237531 | $116331 | $361272 | $84217 | $3391 | $1075732 |
| Current period gross charge-offs | $— | $— | $— | $— | $— | $46 | $— | $— | $46 |
| Payment Performance: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $51726 | $46105 | $175159 | $237531 | $116331 | $360942 | $84217 | $3391 | $1075402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual |  |  |  |  |  | 330 |  |  | 330 |
| **<u>Residential One-to-Four Family:</u>** |  |  |  |  |  |  |  |  |  |
| Pass | $79180 | $60825 | $87635 | $88761 | $119302 | $205620 | $7821 | $— | $649144 |
| Substandard |  |  | 425 | 355 | 380 | 3498 |  |  | 4658 |
| **Total residential one-to-four family** | $79180 | $60825 | $88060 | $89116 | $119682 | $209118 | $7821 | $— | $653802 |
| Current period gross charge-offs | $— | $— | $— | $— | $— | $59 | $— | $— | $59 |
| Payment Performance: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $79180 | $60825 | $87635 | $88761 | $119302 | $206313 | $7821 | $— | $649837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual |  |  | 425 | 355 | 380 | 2805 |  |  | 3965 |
| **<u>Home Equity:</u>** |  |  |  |  |  |  |  |  |  |
| Pass | $9509 | $8699 | $9196 | $5801 | $6264 | $9998 | $68920 | $3062 | $121449 |
| Substandard | 13 |  | 70 |  |  |  | 317 | 8 | 408 |
| **Total home equity loans** | $9522 | $8699 | $9266 | $5801 | $6264 | $9998 | $69237 | $3070 | $121857 |
| Current period gross charge-offs | $— | $— | $20 | $— | $— | $7 | $— | $99 | $126 |
| Payment Performance: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $9509 | $8699 | $9196 | $5801 | $6264 | $9998 | $68920 | $3062 | $121449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual | 13 |  | 70 |  |  |  | 317 | 8 | 408 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** | **As of and Year Ended December 31, 2024** |
|  | **Term Loans Originated by Year** | **Term Loans Originated by Year** | **Term Loans Originated by Year** | **Term Loans Originated by Year** | **Term Loans Originated by Year** | **Term Loans Originated by Year** | **Revolving Loans** | **Revolving Loans** | **Revolving Loans** |
|  | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Term Loans** | **Total** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **<u>Commercial and Industrial:</u>** |  |  |  |  |  |  |  |  |  |
| Pass (Rated 1- 4) | $29346 | $19096 | $27609 | $27371 | $14859 | $22117 | $58852 | $64 | $199314 |
| Special Mention (Rated 5) |  | 25 | 590 | 125 |  | 328 | 99 |  | 1167 |
| Substandard (Rated 6) |  | 5872 |  |  | 376 | 1547 | 3380 |  | 11175 |
| **Total commercial and industrial loans** | $29346 | $24993 | $28199 | $27496 | $15235 | $23992 | $62331 | $64 | $211656 |
| Current period gross charge-offs | $— | $— | $— | $— | $— | $56 | $— | $9 | $65 |
| Payment Performance: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $29346 | $24993 | $28199 | $27496 | $15235 | $23468 | $62182 | $64 | $210983 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual |  |  |  |  |  | 524 | 149 |  | 673 |
| **<u>Consumer:</u>** |  |  |  |  |  |  |  |  |  |
| Pass | $839 | $1421 | $842 | $271 | $45 | $145 | $823 | $— | $4386 |
| Substandard |  |  |  |  |  | 5 |  |  | 5 |
| **Total consumer loans** | $839 | $1421 | $842 | $271 | $45 | $150 | $823 | $— | $4391 |
| Current period gross charge-offs | $— | $— | $— | $— | $— | $— | $— | $228 | $228 |
| Payment Performance: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performing | $839 | $1421 | $842 | $271 | $45 | $145 | $823 | $— | $4386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual |  |  |  |  |  | 5 |  |  | 5 |

---

The following table summarizes information about total loans rated Special Mention, Substandard, Doubtful or Loss for the periods noted.

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
|  | (Dollar in thousands) | (Dollar in thousands) |
| **Criticized loans:** |  |  |
| &nbsp;&nbsp; Special Mention | $17136 | $11405 |
| &nbsp;&nbsp; Substandard | 22523 | 27016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total criticized loans | $39659 | $38421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total criticized loans as a percentage of total loans | 1.8% | 1.9% |

---

At December 31, 2025 and December 31, 2024, the Company did not have any loans rated Doubtful or Loss.

**4.** **PREMISES AND EQUIPMENT** 

Premises and equipment are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| &nbsp;&nbsp;Land | $6239 | $6239 |
| &nbsp;&nbsp;Buildings | 29069 | 28451 |
| &nbsp;&nbsp;Leasehold improvements | 3472 | 3472 |
| &nbsp;&nbsp;Furniture and equipment | 24619 | 24164 |
| &nbsp;&nbsp;&nbsp;**Total** | 63399 | 62326 |
| &nbsp;&nbsp;&nbsp;Less: accumulated depreciation and amortization | (40054) | (37905) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Premises and equipment, net** | $23345 | $24421 |

---

Depreciation and amortization expense for the years ended December 31, 2025, 2024 and 2023 amounted to $2.1 million, $2.2 million and $2.2 million, respectively.

**5.** **GOODWILL AND OTHER INTANGIBLES** 

Goodwill

At December 31, 2025 and December 31, 2024, the carrying value of the Company's goodwill was $12.5 million. Goodwill is measured as the excess of the cost of a business combination over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is not amortized but rather assessed for impairment annually or more frequently if circumstances warrant. Management has the option of first assessing qualitative factors, such as events and circumstances, to determine whether it is more likely than not, meaning a likelihood of more than 50%, the value of a reporting unit is less than its carrying amount. If, after considering all relevant events and circumstances, management determines it is not more likely than not the fair value of a reporting unit is less than its carrying amount, then performing an impairment test is unnecessary. At December 31, 2025 and December 31, 2024, the Company's goodwill was related to the acquisition of Chicopee Bancorp, Inc. in October 2016. For the year ended December 31, 2025, management determined that it was not more likely than not the fair value of the reporting unit was less than its carrying amount. If management had determined otherwise, a fair value analysis would have been completed to determine the impairment and necessary write-down of goodwill.

Core Deposit Intangibles

In connection with the acquisition of Chicopee Bancorp, Inc., the Company recorded a core deposit intangible of $4.5 million, which is being amortized over twelve years using the straight-line method. Amortization expense was $375,000 for each of the years ended December 31, 2025, 2024 and 2023, respectively. At December 31, 2025, future amortization of the core deposit intangible totaled $375,000 for each of the next two years and $313,000 thereafter.

**6.** **DEPOSITS** 

Deposit accounts, by type, are summarized as follows for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** |
|  | **2025** | **% of Total Deposits** | **2024** | **% of Total Deposits** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Demand and interest-bearing checking:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing checking accounts | $174227 | 7.4% | $150348 | 6.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Demand deposit accounts | 594516 | 25.2% | 565620 | 25.0% |
| **Savings:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Regular savings accounts | 186597 | 7.9% | 181618 | 8.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market accounts | 715620 | 30.3% | 661478 | 29.2% |
| **Total core deposits** | 1670960 | 70.8% | 1559064 | 68.9% |
| **Time deposits** | 689948 | 29.2% | 703583 | 31.1% |
| &nbsp;&nbsp;**Total deposits** | $2360908 | 100.0% | $2262647 | 100.0% |

---

There were $1.7 million in brokered deposits on the balance sheet at December 31, 2024 reported within time deposits. There were no brokered deposits on the balance sheet at December 31, 2025.

Time deposits greater than $250,000, which represent those exceeding the fully-insured FDIC limitation, totaled $226.7 million at December 31, 2025. Interest expense on time deposits greater than $250,000 totaled $7.4 million and $9.1 million for the years ended December 31, 2025 and December 31, 2024, respectively.

The scheduled maturities of time deposits for the periods indicated are as follows:

---

| | | |
|:---|:---|:---|
|  | **At December 31,** | **At December 31,** |
|  | **2025** | **2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| 2025 | $— | 694916 |
| 2026 | 678104 | 5186 |
| 2027 | 10063 | 1217 |
| 2028 | 600 | 2129 |
| 2029 | 594 | 135 |
| 2030 | 587 |  |
| **Total time deposits** | $689948 | $703583 |

---

Interest expense on deposits for the years ended December 31, 2025, 2024 and 2023 is summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Savings accounts | $180 | $166 | $181 |
| Money market accounts | 15242 | 12242 | 9529 |
| Time deposits | 25593 | 28806 | 15898 |
| Interest-bearing accounts | 1497 | 1022 | 1041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $42512 | $42236 | $26649 |

---

Cash paid for interest on deposits totaled $42.6 million, $42.2 million and $26.4 million for years ended December 31, 2025, 2024 and 2023, respectively.

**7.** **SHORT-TERM BORROWINGS** 

On a long-term basis, the Company intends to continue to increase its core deposits to fund loan growth. The Company also uses FHLB borrowings as part of the Company's overall strategy to manage interest rate risk and liquidity risk. FHLB advances are secured by a blanket security agreement which requires the Company to maintain certain qualifying assets as collateral, principally certain residential real estate loans and commercial real estate loans and securities, not otherwise pledged. The maximum amount that the FHLB will advance to member institutions, including the Company, fluctuates from time to time in accordance with the policies of the FHLB. As an FHLB member, the Company is required to own capital stock of the FHLB, calculated periodically based primarily on its level of borrowings from the FHLB. Advances are made under several different credit programs with different lending standards, interest rates and range of maturities. The Company's relationship with the FHLB is an integral component of the Company's asset-liability management program. At December 31, 2025, the Company pledged $932.3 million of eligible collateral to support its borrowing capacity at the FHLB.

At December 31, 2025, short-term FHLB advances totaled $10.0 million with a weighted average rate of 3.99%. There were no short-term FHLB advances outstanding at December 31, 2024. The Company also has a standing available overnight Ideal Way line of credit with the FHLB of $9.5 million. Interest on this line of credit is payable at a rate determined and reset by the FHLB on a daily basis. The outstanding principal is due daily but the portion not repaid will be automatically renewed. At December 31, 2025 and December 31, 2024, the Company did not have an outstanding balance under the Ideal Way line of credit. At December 31, 2025, the Company had an immediate availability to borrow an additional $538.6 million from the FHLB, including the Ideal Way line of credit, based on qualified collateral pledged.

Other borrowings, held as collateral for customer swap arrangements, totaled $3.3 million with a weighted average rate of 3.64% at December 31, 2025 and $5.4 million with a weighted average rate of 4.33% at December 31, 2024, respectively.

As a member of the FRB, the Company may also borrow from the Federal Reserve Bank Discount Window (the "FRB Discount Window"). At December 31, 2025 and December 31, 2024, the Company had an available line of credit of $349.0 million and $382.9 million, respectively, with the FRB Discount Window at an interest rate determined and reset on a daily basis. Borrowings from the FRB Discount Window are secured by eligible loan collateral and certain securities from the Company's investment portfolio not otherwise pledged. At December 31, 2025 and December 31, 2024, the Company did not have an outstanding balance under the FRB Discount Window.

The Company also has pre-established, non-collateralized overnight borrowing arrangements with large national and regional correspondent banks to provide additional overnight and short-term borrowing capacity for the Company. The Company has a $15.0 million line of credit with a correspondent bank and a $10.0 million line of credit with another correspondent bank, both at an interest rate determined and reset on a daily basis. As of December 31, 2025 and December 31, 2024, there were no advances outstanding under these lines.

Cash paid for interest on short-term borrowings totaled $227,000 for the year ended December 31, 2025 and $600,000 for the year ended December 31, 2024.

**8.** **LONG-TERM DEBT** 

Cash paid for interest on long-term debt totaled $5.9 million and $9.6 million for the years ended December 31, 2025 and December 31, 2024, respectively. During the year ended December 31, 2024, interest previously accrued on Bank Term Funding Program ("BTFP") advances was payable upon final maturity of the advances in May of 2024 and totaled $4.3 million.

**FHLB Advances.** The following advances are collateralized by a blanket lien on our residential real estate loans and certain eligible commercial real estate loans.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Amount** | **Amount** | **Weighted Average Rate** | **Weighted Average Rate** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | (Dollars in thousands) | (Dollars in thousands) | | |
| Fixed-rate advances maturing: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2025 | $— | $25000 | —% | 5.07% |
| &nbsp;&nbsp;&nbsp;2026 | 48000 | 48000 | 5.00 | 5.00 |
| &nbsp;&nbsp;&nbsp;2027 | 25000 | 25000 | 4.83 | 4.83 |
| &nbsp;&nbsp;&nbsp;2028 |  |  |  |  |
| **Total long-term advances** | $73000 | $98000 | 4.94% | 4.97% |

---

**Subordinated Debt.** On April 20, 2021, the Company completed an offering of $20.0 million in aggregate principal amount of its 4.875% fixed-to-floating rate subordinated notes (the "Notes") to certain qualified institutional buyers in a private placement transaction. At December 31, 2025, $19.8 million aggregate principal amount of the Notes was outstanding.

Unless earlier redeemed, the Notes mature on May 1, 2031. The Notes will bear interest from the initial issue date to, but excluding, May 1, 2026, or the earlier redemption date, at a fixed rate of 4.875% per annum, payable quarterly in arrears on May 1, August 1, November 1 and February 1 of each year, beginning August 1, 2021, and from and including May 1, 2026, but excluding the maturity date or earlier redemption date, equal to the benchmark rate, which is the 90-day average secured overnight financing rate, plus 412 basis points, determined on the determination date of the applicable interest period, payable quarterly in arrears on May 1, August 1, November 1 and February 1 of each year. The Company may also redeem the Notes, in whole or in part, on or after May 1, 2026, and at any time upon the occurrence of certain events, subject in each case to the approval of the Board of Governors of the Federal Reserve System (the "Federal Reserve"). The Notes were designed to qualify as Tier 2 capital under the Federal Reserve's capital adequacy regulations.

The Notes are presented net of issuance costs of $210,000 as of December 31, 2025, which are being amortized into interest expense over the life of the Notes. Amortization of issuance costs into interest expense was $39,000 for each of the years ended December 31, 2025 and December 31, 2024.

**9.&nbsp;&nbsp;&nbsp;&nbsp; STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN**

**Restricted Stock Awards.** 

In May 2021, the Company's shareholders approved the 2021 Omnibus Incentive Plan, a share-based compensation plan (the "2021 Omnibus Plan"). Under the 2021 Omnibus Plan, up to 700,000 shares of the Company's common stock were reserved for grants of stock awards, including stock options and restricted stock, which may be granted to any officer, key employee or non-employee director of the Company. Any shares that are not issued because vesting requirements are not met will be available for future issuance under the 2021 Omnibus Plan.

On an annual basis, the Compensation Committee (the "Committee") approves long-term incentive awards out of the 2021 Omnibus Plan, whereby shares will be granted to eligible participants of the Company that are nominated by the Chief Executive Officer and approved by the Committee, with vesting over a three-year term for employees and a one-year term for directors. Annual employee grants provide for a periodic award that is both performance and time-based and is designed to recognize the executive's responsibilities, reward performance and leadership and as a retention tool. The objective of the award is to align compensation for the named executive officers and directors over a multi-year period directly with the interests of our shareholders by motivating and rewarding creation and preservation of long-term financial strength, shareholder value and relative shareholder return.

**2022 Long-Term Incentive Plan.**

In March 2022, the Committee granted 119,376 shares under the 2022 Long-Term LTI Plan (the "2022 LTI Plan"). Of the 119,376 shares granted, 59,688 shares, or 50% of the shares granted, were time-based restricted shares that are scheduled to vest ratably over a three-year period. The remaining 59,688 shares, or 50% of the shares granted, were performance-based restricted shares that are subject to the achievement of the 2022 LTI Plan performance metrics.

The Committee selected Return on Average Equity ("ROAE") and Three-Year Cumulative Diluted Earnings per Share ("EPS") as the primary performance metrics for the 2022 LTI Plan. Each of these two measures were independently assigned a 50% weight for determining future performance against goals. Performance-based restricted shares will be earned based upon the Company's performance relative to Threshold, Target and Stretch absolute goals on an annual performance period for ROAE metrics and for a three-year cumulative performance period for EPS. For each performance-based goal, achieving Threshold performance pays at 50% of Target value, while achieving Stretch performance pays at 150% of Target value. The performance-based restricted shares will be certified by the Committee and distributed at the end of the three-year period as earned.

The Threshold, Target and Stretch metrics under the 2022 LTI Plan are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **ROAE Metrics** | **ROAE Metrics** | **ROAE Metrics** | **ROAE Metrics** |
| <br>&nbsp;&nbsp;**Performance Period Ending** | **Threshold** | **Target** | **Stretch** | **Actual** |
| &nbsp;&nbsp;December 31, 2022 | 7.79% | 8.20% | 8.61% | 11.85% |
| &nbsp;&nbsp;December 31, 2023 | 7.93% | 8.35% | 8.77% | 6.47% |
| &nbsp;&nbsp;December 31, 2024 | 8.03% | 8.45% | 8.87% | 4.93% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **EPS Metrics** | **EPS Metrics** | **EPS Metrics** | **EPS Metrics** |
| <br>&nbsp;&nbsp;**Performance Period Ending** | **Threshold** | **Target** | **Stretch** | **Actual** |
| &nbsp;&nbsp;Three-Year Cumulative Diluted EPS | $2.35 | $2.61 | $2.85 | $2.44 |

---

At December 31, 2024, the three-year performance period for the 2022 LTI Plan ended. Of the 59,688 performance-based shares granted in 2022, based on achieving 58.7% of target, 31,460 performance-based shares vested on March 7, 2025, and were eligible to be issued to recipients.

**2022 Annual Equity Retainer.**

In March 2022, under the Company's 2021 Omnibus Plan, each non-employee director received an annual equity retainer of 1,975 time-based restricted shares of WNEB common stock. In total, 17,775 shares were granted and fully vested on December 31, 2022.

**2023 Long-Term Incentive Plan.**

In March 2023, the Committee granted 120,998 shares under the 2023 Long-Term LTI Plan (the "2023 LTI Plan"). Of the 120,998 shares granted, 60,499 shares, or 50% of the shares granted, were time-based restricted shares and vest ratably over a three-year period. The remaining 60,499 shares, or 50% of the shares granted, were performance-based restricted shares that are subject to the achievement of the 2023 LTI Plan performance metrics.

The Committee selected ROAE and EPS as the primary performance metrics for the 2023 LTI Plan. Each of these two measures were independently assigned a 50% weight for determining future performance against goals. Performance-based restricted shares will be earned based upon the Company's performance relative to Threshold, Target and Stretch absolute goals on an annual performance period for ROAE metrics and for a three-year cumulative performance period for EPS. For each performance-based goal, achieving Threshold performance pays at 50% of Target value, while achieving Stretch performance pays at 150% of Target value. The performance-based restricted shares will be certified by the Committee and distributed at the end of the three-year period as earned.

The Threshold, Target and Stretch metrics under the 2023 LTI Plan are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **ROAE Metrics** | **ROAE Metrics** | **ROAE Metrics** |
| <br>&nbsp;&nbsp;**Performance Period Ending** | **Threshold** | **Target** | **Stretch** |
| &nbsp;&nbsp;December 31, 2023 | 8.00% | 8.45% | 8.85% |
| &nbsp;&nbsp;December 31, 2024 | 8.75% | 9.25% | 9.75% |
| &nbsp;&nbsp;December 31, 2025 | 9.00% | 9.50% | 10.00% |

---

---

| | | | |
|:---|:---|:---|:---|
| | **EPS Metrics** | **EPS Metrics** | **EPS Metrics** |
| <br>&nbsp;&nbsp;**Performance Period Ending** | **Threshold** | **Target** | **Stretch** |
| &nbsp;&nbsp;Three-Year Cumulative Diluted EPS | $2.39 | $2.65 | $2.89 |

---

**2023 Annual Equity Retainer.**

In March 2023, under the Company's 2021 Omnibus Plan, each non-employee director received an annual equity retainer of 2,022 time-based restricted shares of WNEB common stock. In total, 18,198 shares were granted and fully vested on December 31, 2023.

**2024 Long-Term Incentive Plan.**

In March 2024, the Committee granted 146,422 shares under the 2024 Long-Term LTI Plan (the "2024 LTI Plan"). Of the 146,422 shares granted, 73,211 shares, or 50% of the shares granted, were time-based restricted shares that are scheduled to vest ratably over a three-year period. The remaining 73,211 shares, or 50% of the share granted, were performance-based restricted shares that are subject to the achievement of the 2024 LTI Plan performance metrics.

The Committee selected ROAE and EPS as the primary performance metrics for the 2024 LTI Plan. Each of these two measures were independently assigned a 50% weight for determining future performance against goals. Performance-based restricted shares will be earned based upon the Company's performance relative to Threshold, Target and Stretch absolute goals on an annual performance period for ROAE metrics and for a three-year cumulative performance period for EPS. For each performance-based goal, achieving Threshold performance pays at 50% of Target value, while achieving Stretch performance pays at 150% of Target value. The performance-based restricted shares will be certified by the Committee and distributed at the end of the three-year period as earned.

The Threshold, Target and Stretch metrics under the 2024 LTI Plan are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **ROAE Metrics** | **ROAE Metrics** | **ROAE Metrics** |
| <br>**Performance Period Ending** | **Threshold** | **Target** | **Stretch** |
| &nbsp;&nbsp;December 31, 2024 | 5.05% | 5.61% | 6.17% |
| &nbsp;&nbsp;December 31, 2025 | 6.18% | 6.86% | 7.55% |
| &nbsp;&nbsp;December 31, 2026 | 7.30% | 8.11% | 8.92% |

---

---

| | | | |
|:---|:---|:---|:---|
| | **EPS Metrics**  | **EPS Metrics**  | **EPS Metrics**  |
| <br>&nbsp;&nbsp;**Performance Period Ending** | **Threshold** | **Target** | **Stretch** |
| &nbsp;&nbsp;Three-Year Cumulative Diluted EPS | $2.25 | $2.50 | $2.75 |

---

**2024 Annual Equity Retainer.**

In March 2024, under the Company's 2021 Omnibus Plan, each non-employee director received an annual equity retainer of 2,384 time-based restricted shares of WNEB common stock. In total, 21,456 shares were granted and there were 19,072 shares that fully vested on December 31, 2024.

**2025 Long-Term Incentive Plan.**

In March 2025, the Committee granted 140,384 shares under the 2025 Long-Term LTI Plan (the "2025 LTI Plan"). Of the 140,384 shares granted, 70,192 shares, or 50% of the shares granted, were time-based restricted shares that are scheduled to vest ratably over a three-year period. The remaining 70,192 shares, or 50% of the shares granted, were performance-based restricted shares that are subject to the achievement of the 2025 LTI Plan performance metrics.

The Committee selected ROAE and EPS as the primary performance metrics for the 2025 LTI Plan. Each of these two measures were independently assigned a 50% weight for determining future performance against goals. Performance-based restricted shares will be earned based upon the Company's performance relative to Threshold, Target and Stretch absolute goals on an annual performance period for ROAE metrics and for a three-year cumulative performance period for EPS. For each performance-based goal, achieving Threshold performance pays at 50% of Target value, while achieving Stretch performance pays at 150% of Target value. The performance-based restricted shares will be certified by the Committee and distributed at the end of the three-year period as earned.

The Threshold, Target and Stretch metrics under the 2025 LTI Plan are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **ROAE Metrics** | **ROAE Metrics** | **ROAE Metrics** |
| <br>**Performance Period Ending** | **Threshold** | **Target** | **Stretch** |
| &nbsp;&nbsp;December 31, 2025 | 5.12% | 6.10% | 7.32% |
| &nbsp;&nbsp;December 31, 2026 | 6.10% | 7.24% | 8.69% |
| &nbsp;&nbsp;December 31, 2027 | 6.52% | 7.76% | 9.31% |

---

---

| | | | |
|:---|:---|:---|:---|
| | **EPS Metrics**  | **EPS Metrics**  | **EPS Metrics**  |
| <br>&nbsp;&nbsp;**Performance Period Ending** | **Threshold** | **Target** | **Stretch** |
| &nbsp;&nbsp;Three-Year Cumulative Diluted EPS | $2.10 | $2.50 | $3.00 |

---

**Amended and Restated 2021 Omnibus Incentive Plan.**

On May 14, 2025, the Company held its Annual Meeting of Shareholders at which the Company's shareholders approved the amendment and restatement of the Company's 2021 Omnibus Plan (the "Amended and Restated Plan") to increase the total number of shares of common stock available for issuance by 1,000,000 shares. The Amended and Restated Plan was approved by the Company's Board of Directors on January 28, 2025, subject to shareholder approval, and became effective with such shareholder approval on May 14, 2025.

**2025 Annual Equity Retainer.**

In May 2025, under the Company's Amended and Restated Plan, each non-employee director received an annual equity retainer of 2,116 time-based restricted shares of WNEB common stock. In total, 16,928 shares were granted and became fully vested on December 31, 2025.

At December 31, 2025, there were 1,004,544 remaining shares available to grant under the Amended and Restated Plan.

A summary of the status of unvested restricted stock awards at December 31, 2025 and December 31, 2024 is presented below:

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Weighted Average Grant Date Fair Value**<br> **($)** |
| Balance at December 31, 2024 | 254732 | 9.01 |
| &nbsp;&nbsp;&nbsp;Shares granted | 126615 | 9.31 |
| &nbsp;&nbsp;&nbsp;Shares reissued | 30697 | 9.33 |
| &nbsp;&nbsp;&nbsp;Shares forfeited | (38269) | 9.08 |
| &nbsp;&nbsp;&nbsp;Shares vested | (112775) | 9.19 |
| **Balance at December 31, 2025** | 261000 | 9.11 |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Weighted Average Grant Date Fair Value** <br> **($)** |
| Balance at December 31, 2023 | 220635 | 9.29 |
| &nbsp;&nbsp;&nbsp;Shares granted | 187049 | 8.38 |
| &nbsp;&nbsp;&nbsp;Shares forfeited | (2384) | 8.39 |
| &nbsp;&nbsp;&nbsp;Shares vested | (150568) | 8.65 |
| **Balance at December 31, 2024** | 254732 | 9.01 |

---

We recorded total expense for restricted stock awards of $1.1 million, $1.5 million and $1.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. The aggregate fair value of restricted stock vested during 2025 was $1.3 million. Tax benefits related to equity incentive plan expense were $90,000, $29,000 and $29,000 for the years ended December 31, 2025, 2024 and 2023, respectively. Unrecognized compensation cost for stock awards was $996,000 at December 31, 2025 with a remaining term of 1.9 years.

**ESOP.** We established an ESOP for the benefit of each employee that has reached the age of 21 and has completed at least 1,000 hours of service in the previous 12-month period. In January 2002, as part of the initial stock conversion, we provided a loan to the ESOP Trust which was used to purchase 8%, or 1,305,359 shares, of the common stock sold in the initial public offering.

In January 2007, as part of the second-step stock conversion, we provided an additional loan to the ESOP Trust which was used to purchase 4.0%, or 736,000 shares, of the 18,400,000 shares of common stock sold in the offering. The 2002 and 2007 loans bear an interest rate of 8.0% and provide for annual payments of interest and principal.

At December 31, 2025, the remaining principal balances are payable as follows:

---

| | |
|:---|:---|
| **Years Ending**<br>**December 31,** |<br>**Amount** |
| (Dollars in thousands) | (Dollars in thousands) |
| 2026 | $447 |
| 2027 | 395 |
| 2028 | 245 |
| 2029 | 245 |
| 2030 | 245 |
| Thereafter | 218 |
| **Total** | $1795 |

---

We have committed to make contributions to the ESOP sufficient to support the debt service of the loans. The loans are secured by the shares purchased, which are held in a suspense account for allocation among the participants as the loans are paid. Total compensation expense applicable to the ESOP amounted to $705,000, $572,000 and $562,000 for the years ended December 31, 2025, 2024 and 2023, respectively.

Shares held by the ESOP include the following at December 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Allocated | 1164241 | 1182583 |
| Committed to be allocated | 67377 | 71240 |
| Unallocated | 152877 | 220254 |
| **Total** | 1384495 | 1474077 |

---

Cash dividends declared and received on allocated shares are allocated to participants and charged to retained earnings. Cash dividends declared and received on unallocated shares are held in suspense and are applied to repay the outstanding debt of the ESOP. The fair value of unallocated shares was $1.9 million and $2.0 million at December 31, 2025 and December 31, 2024, respectively. ESOP shares are considered outstanding for earnings per share calculations when they are committed to be allocated. Unallocated ESOP shares are excluded from earnings per share calculations. The cost of unearned shares to be allocated to ESOP participants for future services not yet performed is reflected as a reduction of shareholders' equity.

**10.** **RETIREMENT PLANS AND EMPLOYEE BENEFITS** 

**401(k) Defined Contribution Plan.**

The Company also maintains a tax-qualified defined contribution plan through a third party provider (the "401(k) Plan") that provides for deferral of federal and state income taxes on employee contributions allowed under Section 401(k) of the Internal Revenue Code. Participants may make pre-tax salary deferrals to the plan not to exceed the annual IRS limits. Effective January 1, 2023, the Company converted to a Safe Harbor 401(k) Plan. In addition to salary deferrals, the Company will match up to 100% of the first 4% of the participant's eligible compensation (for a total maximum employer matching contribution of 4% of a participant's eligible compensation). In addition, on an annual basis, the Company may make a discretionary profit share contribution to each participant.

The Company's expense for the 401(k) plan match was $794,000, $773,000 and $736,000 for the years ended December 31, 2025, 2024 and 2023, respectively. The Company's expense for the 401(k) discretionary profit share contribution was $640,000, $598,000 and $675,000 for the years ended December 31, 2025, 2024 and 2023, respectively. The discretionary profit share contribution expensed during the year ended December 31, 2025 is expected to be made during the first quarter of 2026.

**11.** **DERIVATIVES AND HEDGING ACTIVITIES** 

**Risk Management Objective of Using Derivatives.**

The Company is exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our assets and liabilities and the use of derivative financial instruments. Specifically, we entered into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to certain variable rate loan assets and variable rate borrowings.

**Fair Value Hedges of Interest Rate Risk.**

The Company is exposed to changes in the fair value of certain pools of fixed-rate 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 Company's 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 derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income**.** 

In October of 2024, $200 million in notional amount of designated fair value hedges matured. As of December 31, 2024, the Company did not have any outstanding fair value hedges on the balance sheet at December 31, 2025 and December 31, 2024.

**Non-hedging Derivatives.**

Derivatives not designated as hedges are not speculative, but rather result from a service the Company provides to certain customers. The Company executes loan-level derivative products such as interest-rate swap agreements with commercial banking customers to aid them in managing their interest-rate risk by converting floating-rate loan payments to fixed-rate loan payments. The Company concurrently enters into offsetting swaps with a third-party financial institution, effectively minimizing the Company's net risk exposure resulting from such transactions. The third-party financial institution exchanges the customer's fixed-rate loan payments for floating-rate loan payments. As the interest-rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings.

**Fair Values of Derivative Instruments on the Balance Sheet.**

The tables below present the fair value of our derivative financial instruments designated as hedging and non-hedging instruments as well as our classification on the balance sheet as of December 31, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2025** | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
|  | **Balance Sheet Location** | **Fair Value** | **Balance Sheet Location** | **Fair Value** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| &nbsp;&nbsp;&nbsp;Derivatives not designated as hedging instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap – with customer counterparties |  | $821 |  | $4142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap – with dealer counterparties |  | 4142 |  | 821 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total derivatives** | Other Assets | $4963 | Other Liabilities | $4963 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2024** | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
|  | **Balance Sheet Location** | **Fair Value** | **Balance Sheet Location** | **Fair Value** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| &nbsp;&nbsp;&nbsp;Derivatives not designated as hedging instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap – with customer counterparties |  | $— |  | $5883 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap – with dealer counterparties |  | 5883 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total derivatives** | Other Assets | $5883 | Other Liabilities | $5883 |

---

**Effect of Derivative Instruments in the Consolidated Statements of Net Income.**

The table below presents the effect of the Company's derivative financial instruments on the statements of net income for the years ended December 31, 2024 and 2023. There were no gains or losses on fair value hedging relationships recorded through interest income for the year ended December 31, 2025.

---

| | | |
|:---|:---|:---|
|  | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value Hedging Relationships** | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value Hedging Relationships** |
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| **Balance sheet location** | **Interest Income** | **Interest Income** |
| Total amounts of income line items presented in the statements of net income in which the effects of fair value hedges are recorded | $1398 | $1085 |
| **Gain (loss) on fair value hedging relationships** |  |  |
| Interest rate contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedged items | $607 | $(607) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments | 791 | 1692 |

---

There were no gains or losses recognized in accumulated other comprehensive income related to derivative financial instruments during the years ended December 31, 2025 and December 31, 2024, respectively.

Credit-risk-related Contingent Features

By using derivative financial instruments, we expose ourselves to credit risk. Credit risk is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative is negative, we owe the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that we believe to be creditworthy and by limiting the amount of exposure to each counterparty.

We have agreements with our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. We also have agreements with certain of our derivative counterparties that contain a provision where if we fail to maintain our status as well capitalized, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements. Certain of our agreements with our derivative counterparties contain provisions where if a formal administrative action by a federal or state regulatory agency occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument.

At December 31, 2025, we had minimum collateral posting thresholds with certain of our derivative counterparties. As of December 31, 2025, we were not required to post collateral under these agreements because we did not have any derivatives in a net liability position with those counterparties.

**12.** **LEASES** 

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. We have not elected the practical expedient to account for lease and non-lease components as one lease component. The Company has operating leases for certain of our banking offices and ATMs. Our leases have remaining lease terms of less than one year to thirteen years, some of which include options to extend the leases for additional five-year terms up to ten years. Operating lease costs were $1.6 million, $1.6 million, and $1.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Supplemental cash flow information related to leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Operating cash flows from operating leases | $1526 | $1524 |
| ROU assets obtained in exchange for lease obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases | 252 | 451 |

---

Supplemental balance sheet information related to leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| Operating lease ROU assets | $6370 | $7383 |
| Operating lease liabilities | $6660 | $7673 |

---

At December 31, 2025, the weighted average remaining lease term for our operating leases was 8.0 years with a weighted average discount rate of 3.37%. At December 31, 2024, the weighted average remaining lease term for our operating leases was 8.4 years with a weighted average discount rate of 3.33%.

Future undiscounted lease payments for the Company's operating lease liabilities were as follows (in thousands):

---

| | |
|:---|:---|
| **Years Ending December 31,** | |
| 2026 | $1404 |
| 2027 | 1145 |
| 2028 | 907 |
| 2029 | 866 |
| 2030 | 639 |
| Thereafter | 2695 |
| &nbsp;&nbsp;&nbsp;**Total lease payments** | 7656 |
| Less imputed interest | (996) |
| &nbsp;&nbsp;&nbsp;**Total** | $6660 |

---

**13.** **REGULATORY CAPITAL** 

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to savings and loan holding companies.

Federal banking regulations require the Company and the Bank to maintain minimum amounts and ratios of total, common equity Tier 1, Tier 1 and total capital to risk-weighted assets and Tier 1 capital to average assets, as set forth in the table below. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses.

At December 31, 2025, we exceeded each of the applicable regulatory capital requirements including the capital conservation buffer. As of December 31, 2025, the most recent notification from the Office of Comptroller of the Currency categorized the Bank as "well-capitalized" under the regulatory framework for prompt corrective action. To be categorized as "well-capitalized," the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes would change our category.

Our actual capital ratios of December 31, 2025 and December 31, 2024 are also presented in the following table.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Actual** | **Actual** | **Minimum For Capital Adequacy Purpose** | **Minimum For Capital Adequacy Purpose** | **Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions** | **Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions** |
|  | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **<u>December 31, 2025</u>** |  |  |  |  |  |  |
| Total Capital (to Risk Weighted Assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $291864 | 14.19% | $164584 | 8.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank | 276990 | 13.48 | 164435 | 8.00 | $205544 | 10.00% |
| Tier 1 Capital (to Risk Weighted Assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | 251103 | 12.21 | 123438 | 6.00 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank | 256019 | 12.46 | 123326 | 6.00 | 164435 | 8.00 |
| Common Equity Tier 1 Capital (to Risk Weighted Assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | 251103 | 12.21 | 92578 | 4.50 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank | 256019 | 12.46 | 92495 | 4.50 | 133603 | 6.50 |
| Tier 1 Leverage Ratio (to Adjusted Average Assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | 251103 | 9.13 | 110013 | 4.00 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank | 256019 | 9.32 | 109878 | 4.00 | 137347 | 5.00 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Actual** | **Actual** | **Minimum For Capital Adequacy Purpose** | **Minimum For Capital Adequacy Purpose** | **Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions** | **Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions** |
|  | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **<u>December 31, 2024</u>** |  |  |  |  |  |  |
| Total Capital (to Risk Weighted Assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $285545 | 14.38% | $158884 | 8.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank | 270879 | 13.65 | 158744 | 8.00 | $198430 | 10.00% |
| Tier 1 Capital (to Risk Weighted Assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | 245663 | 12.37 | 119163 | 6.00 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank | 250748 | 12.64 | 119058 | 6.00 | 158744 | 8.00 |
| Common Equity Tier 1 Capital (to Risk Weighted Assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | 245663 | 12.37 | 89372 | 4.50 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank | 250748 | 12.64 | 89293 | 4.50 | 128979 | 6.50 |
| Tier 1 Leverage Ratio (to Adjusted Average Assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | 245663 | 9.14 | 107461 | 4.00 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank | 250748 | 9.34 | 107390 | 4.00 | 134237 | 5.00 |

---

The following is a reconciliation of our GAAP capital to regulatory Tier 1, Common Equity Tier 1 and total capital:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| Consolidated GAAP capital | $247637 | $235910 |
| Net unrealized losses on available-for-sale securities, net of tax | 16717 | 23274 |
| Goodwill | (12487) | (12487) |
| Intangible assets, net of associated deferred tax liabilities | (764) | (1034) |
| &nbsp;&nbsp;&nbsp;**Tier 1 and Common Equity Tier 1 capital** | 251103 | 245663 |
| Allowance for credit losses for regulatory capital | 20971 | 20131 |
| Subordinated debt | 19790 | 19751 |
| &nbsp;&nbsp;&nbsp;**Total regulatory capital** | $291864 | $285545 |

---

On April 22, 2025, the Board of Directors authorized the 2025 Plan, pursuant to which the Company may repurchase up to 1.0 million shares of its common stock, or approximately 4.8%, of the Company's then-outstanding shares of common stock, upon the completion of the 2024 Plan. On June 3, 2025, the Company announced the completion of its 2024 Plan under which the Company repurchased a total of 1.0 million shares at an average price per share of $8.79.

During the three months ended December 31, 2025, the Company repurchased 100,000 shares of its common stock at an average price per share of $11.80. During the twelve months ended December 31, 2025, the Company repurchased 599,853 shares of its common stock under the 2025 Plan and the 2024 Plan, as applicable, at an average price per share of $9.73. As of December 31, 2025, there were 872,465 shares of common stock available for repurchase under the 2025 Plan.

We are subject to dividend restrictions imposed by various regulators, including a limitation on the total of all dividends that the Bank may pay to the Company in any calendar year, to an amount that shall not exceed the Bank's net income for the current year, plus its net income retained for the two previous years, without regulatory approval. At December 31, 2025, the Bank had $10.6 million in retained earnings available for payment of dividends without prior regulatory approval. In addition, the Bank may not declare or pay dividends on, and we may not repurchase, any of our shares of common stock if the effect thereof would cause shareholders' equity to be reduced below applicable regulatory capital maintenance requirements or if such declaration, payment or repurchase would otherwise violate regulatory requirements. The Bank will be prohibited from paying cash dividends to the Company to the extent that any such payment would reduce the Bank's capital below required capital levels. Accordingly, $164.4 million and $158.7 million of our equity in the net assets of the Bank was restricted at December 31, 2025 and December 31, 2024, respectively.

**14. INCOME TAXES**

Income taxes consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Current tax provision: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $3873 | $2089 | $2990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | 1650 | 1024 | 1335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | 5523 | 3113 | 4325 |
| Deferred tax (benefit) provision: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | (712) | 123 | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | (290) | 55 | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | (1002) | 178 | 191 |
| **Total tax provision** | $4521 | $3291 | $4516 |

---

The differences between the statutory federal income tax at a rate of 21% and the effective tax are summarized below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Statutory federal income tax | $4156 | 21.0% | $3141 | 21.0% | $4113 | 21.0% |
| Increase (decrease) resulting from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;State taxes, net of federal tax benefit | 1074 | 5.4 | 853 | 5.7 | 1244 | 5.8 |
| &nbsp;&nbsp;&nbsp;Tax-exempt income | (354) | (1.8) | (340) | (2.3) | (340) | (1.7) |
| &nbsp;&nbsp;&nbsp;Bank-owned life insurance (BOLI) | (412) | (2.1) | (401) | (2.7) | (382) | (2.0) |
| &nbsp;&nbsp;&nbsp;BOLI death benefit |  |  |  |  | (163) | (0.8) |
| &nbsp;&nbsp;&nbsp;Other, net | 57 | 0.3 | 38 | 0.3 | 44 | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Effective tax** | $4521 | 22.8% | $3291 | 22.0% | $4516 | 23.1% |

---

State taxes in Massachusetts and Connecticut made up the majority (greater than 50%) of the tax effect in this category for the years ended December 31, 2025, 2024, and 2023.

The effective tax rate differs from the statutory federal income tax rate primarily due to state taxes, tax-exempt income, and BOLI. In particular, state taxes increased our effective tax rate, while tax-exempt income and BOLI lowered the effective tax rate for the years ended December 31, 2025, 2024, and 2023.

Cash paid for income taxes for the years ended December 31, 2025, 2024, and 2023 was $5.6 million, $2.9 million and $4.6 million, respectively. Income taxes paid were as follows:

Income taxes consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Federal tax | $3750 | $2050 | $3000 |
| State taxes: |  |  |  |
| &nbsp;&nbsp;&nbsp;Massachusetts | 1406 | 661 | 1250 |
| &nbsp;&nbsp;&nbsp;Connecticut | 306 | 150 | 250 |
| &nbsp;&nbsp;&nbsp;All other states | 140 | 70 | 98 |
| **Total** | $5602 | $2931 | $4598 |

---

The tax effects of each item that gives rise to deferred taxes are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses | $5929 | $5702 |
| &nbsp;&nbsp;&nbsp;Net unrealized loss on available-for-sale securities | 5677 | 7962 |
| &nbsp;&nbsp;&nbsp;Lease liability | 1872 | 2157 |
| &nbsp;&nbsp;&nbsp;Employee benefit and share-based compensation plans | 1245 | 1154 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 876 | 599 |
| &nbsp;&nbsp;&nbsp;Investment in partnerships | 465 | 202 |
| &nbsp;&nbsp;&nbsp;Nonaccrual interest | 229 | 292 |
| &nbsp;&nbsp;&nbsp;FDIC assessment | 110 | 103 |
| &nbsp;&nbsp;&nbsp;Interest payable | 69 | 90 |
| &nbsp;&nbsp;&nbsp;Purchased mortgage servicing rights | 61 | 66 |
| &nbsp;&nbsp;&nbsp;Other | 97 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross deferred tax assets** | 16630 | 18328 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Lease right-of-use asset | (1791) | (2075) |
| &nbsp;&nbsp;&nbsp;Deferred loan fees | (1013) | (914) |
| &nbsp;&nbsp;&nbsp;Purchase accounting adjustments, net | (633) | (774) |
| &nbsp;&nbsp;&nbsp;Fixed asset depreciation | (406) | (533) |
| &nbsp;&nbsp;&nbsp;Other | (71) | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross deferred tax liabilities** | (3914) | (4331) |
| **Net deferred tax asset** | $12716 | $13997 |

---

The federal income tax reserve for loan losses at the Bank's base year is $9.4 million. If any portion of the reserve is used for purposes other than to absorb loan losses, approximately 150% of the amount actually used, limited to the amount of the reserve, would be subject to taxation in the fiscal year in which used. As the Bank intends to use the reserve solely to absorb loan losses, a deferred tax liability of $2.6 million has not been provided.

We did not have any uncertain tax positions at December 31, 2025 or 2024 which required accrual or disclosure. We record interest and penalties as part of income tax expense. The Company recorded $6,000 in interest and penalties for the year ended December 31, 2025. There were no interest or penalties recorded for the years ended December 31, 2024 and 2023.

Our income tax returns are subject to review and examination by federal and state tax authorities. We are currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2022 through 2025. The years open to examination by state taxing authorities vary by jurisdiction; however, no years prior to 2022 are open.

**15.&nbsp;&nbsp;&nbsp;&nbsp; TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS**

We have had, and expect to have in the future, loans with our directors and executive officers including their affiliates. Such loans, in our opinion, do not include more than the normal risk of collectability or other unfavorable features. Following is a summary of activity for such loans:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| Balance at beginning of year | $365 | $561 |
| Principal distributions | 64 | 50 |
| Repayments of principal | (42) | (246) |
| Change in related party status | (25) |  |
| &nbsp;&nbsp; **Balance at end of year** | $362 | $365 |

---

**16. COMMITMENTS AND CONTINGENCIES**

**Loan Commitments.**

In the normal course of business, various commitments and contingent liabilities are outstanding, such as standby letters of credit and commitments to extend credit with off-balance-sheet risk that are not reflected in the consolidated financial statements. Financial instruments with off-balance-sheet risk involve elements of credit, interest rate, liquidity and market risk.

We do not anticipate any significant losses as a result of these transactions. The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| Commitments to extend credit: |  |  |
| &nbsp;&nbsp;&nbsp;Unused lines of credit | $357273 | $343078 |
| &nbsp;&nbsp;&nbsp;Loan commitments | 38380 | 56183 |
| &nbsp;&nbsp;&nbsp;Existing construction loan agreements | 53100 | 47398 |
| &nbsp;&nbsp;&nbsp;Standby letters of credit | 52534 | 18773 |

---

We use the same credit policies in making commitments and conditional obligations as for on balance sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.

Standby letters of credit are written conditional commitments that guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. At December 31, 2025 and December 31, 2024, outstanding standby letter of credit commitments totaled $52.5 million and $18.8 million, respectively, with standby letters of credit issued by the FHLB on our behalf totaling $45.1 million and $11.8 million, respectively.

At December 31, 2025, outstanding commitments to extend credit totaled $501.3 million, with $34.7 million in fixed rate commitments with interest rates ranging from 3.25% to 18.00% and $466.6 million in variable rate commitments. At December 31, 2024, outstanding commitments to extend credit totaled $465.4 million, with $33.9 million in fixed rate commitments with interest rates ranging from 3.25% to 18.00% and $431.5 million in variable rate commitments.

In the ordinary course of business, we are party to various legal proceedings, none of which, in our opinion, will have a material effect on our consolidated financial position or results of operations.

**Vendor Contract.**

The Company entered into a long-term contractual obligation with a vendor for use of its core provider and ancillary services beginning in 2016. Total remaining contractual obligations outstanding with this vendor as of December 31, 2025 were estimated to be $3.6 million, which is expected to be paid within one year.

**Investment Commitments.**

The Bank is a limited partner in a Small Business Investment Company ("SBIC") and committed to contribute capital of $7.5 million to the partnership. At December 31, 2025, the SBIC currently has a book value of $3.9 million and is included in other assets. The unfunded commitment to the partnership was $3.6 million at December 31, 2025.

**Employment and change of control agreements.**

We have entered into employment and change of control agreements with certain senior officers. The initial term of the employment agreements is for three years subject to separate one-year extensions as approved by the Board of Directors at the end of each applicable fiscal year. Each employment agreement provides for minimum annual salaries, discretionary cash bonuses and other fringe benefits as well as severance benefits upon certain terminations of employment that are not for cause. The change of control agreements expire one year following a notice of non-extension and only provide for severance benefits upon certain terminations of employment that are not for cause and that are related to a change of control of the Company or the Bank.

**17. FAIR VALUE OF ASSETS AND LIABLITIES**

**Determination of Fair Value.**

We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for our various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

Methods and assumptions for valuing our financial instruments are set forth below. Estimated fair values are calculated based on the value without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications or estimated transaction cost.

**Securities.** The securities measured at fair value in Level 1 are based on quoted market prices in an active exchange market. All other securities are measured at fair value in Level 2 and are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. These securities include government-sponsored enterprise obligations, state and municipal obligations, corporate bonds, residential mortgage-backed securities guaranteed and sponsored by the U.S. government or an agency thereof. Fair value measurements are obtained from a third-party pricing service and are not adjusted by management.

**Interest rate swaps.** The valuation of our interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. We have determined that the majority of the inputs used to value our interest rate derivatives fall within Level 2 of the fair value hierarchy.

**Assets and Liabilities Measured at Fair Value on a Recurring Basis.**

Assets and liabilities measured at fair value on a recurring basis are summarized below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Assets:** |  |  |  |  |
| Securities available-for-sale | $— | $175800 | $— | $175800 |
| Marketable equity securities | 632 |  |  | 632 |
| Interest rate swaps |  | 4963 |  | 4963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $632 | $180763 | $— | $181395 |
| **Liabilities:** |  |  |  |  |
| Interest rate swaps | $— | $4963 | $— | $4963 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Assets:** |  |  |  |  |
| Securities available-for-sale | $— | $160704 | $— | $160704 |
| Marketable equity securities | 397 |  |  | 397 |
| Interest rate swaps |  | 5883 |  | 5883 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $397 | $166587 | $— | $166984 |
| **Liabilities:** |  |  |  |  |
| Interest rate swaps | $— | $5883 | $— | $5883 |

---

There were no transfers to or from Level 3 for assets measured at fair value on a recurring basis during the years ended December 31, 2025 and December 31, 2024.

**Assets Measured at Fair Value on a Non-recurring Basis.**

We may also be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The following table summarizes the fair value hierarchy used to determine the carrying values of the related assets as of December 31, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **At** | **At** | **At** | |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **Year Ended**<br>**December 31, 2025** |
|  |<br>**Level 1** |<br>**Level 2** |<br>**Level 3** | **Total**<br>**Losses** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| &nbsp;&nbsp;Collateral dependent loans | $— | $— | $1 | $33 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **Year Ended**<br>**December 31, 2024** |
|  |<br>**Level 1** |<br>**Level 2** |<br>**Level 3** | **Total**<br>**Losses** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| &nbsp;&nbsp;Collateral dependent loans | $— | $— | $325 | $182 |

---

The amount of impaired loans represents the carrying value, net of the related write-down or valuation allowance of collateral dependent loans for which adjustments are based on the estimated fair value of the underlying collateral. The fair value of collateral dependent loans with specific allocations of the allowance for loan losses is generally based on real estate appraisals performed by independent licensed or certified appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management will discount appraisals as deemed necessary based on the date of the appraisal and new information deemed relevant to the valuation. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value.

**Summary of Fair Values of Financial Instruments.**

The estimated fair values of our financial instruments are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025**  | **December 31, 2025**  | **December 31, 2025**  | **December 31, 2025**  | **December 31, 2025**  |
|  | **Carrying Value** | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
|  | | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $40381 | $40381 | $— | $— | $40381 |
| &nbsp;&nbsp;&nbsp;Securities held-to-maturity | 188800 | 4898 | 153606 |  | 158504 |
| &nbsp;&nbsp;&nbsp;Securities available-for-sale | 175800 |  | 175800 |  | 175800 |
| &nbsp;&nbsp;&nbsp;Marketable equity securities | 632 | 632 |  |  | 632 |
| &nbsp;&nbsp;&nbsp;FHLB and other restricted stock | 5359 |  |  | 5359 | 5359 |
| &nbsp;&nbsp;&nbsp;Loans - net | 2163295 |  |  | 2061147 | 2061147 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 8783 |  |  | 8783 | 8783 |
| &nbsp;&nbsp;&nbsp;Mortgage servicing rights | 318 |  | 673 |  | 673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative asset | 4963 |  | 4963 |  | 4963 |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 2360908 |  |  | 2359790 | 2359790 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | 13270 |  | 13286 |  | 13286 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 73000 |  | 73601 |  | 73601 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt | 19790 |  | 15796 |  | 15796 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 752 |  |  | 752 | 752 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities | 4963 |  | 4963 |  | 4963 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024**  | **December 31, 2024**  | **December 31, 2024**  | **December 31, 2024**  | **December 31, 2024**  |
|  | **Carrying Value** | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
|  | | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $66450 | $66450 | $— | $— | $66450 |
| &nbsp;&nbsp;&nbsp;Securities held-to-maturity | 205036 | 4727 | 160879 |  | 165606 |
| &nbsp;&nbsp;&nbsp;Securities available-for-sale | 160704 |  | 160704 |  | 160704 |
| &nbsp;&nbsp;&nbsp;Marketable equity securities | 397 | 397 |  |  | 397 |
| &nbsp;&nbsp;&nbsp;FHLB and other restricted stock | 5818 |  |  | 5818 | 5818 |
| &nbsp;&nbsp;&nbsp;Loans - net | 2050660 |  |  | 1894621 | 1894621 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 8468 |  |  | 8468 | 8468 |
| &nbsp;&nbsp;&nbsp;Mortgage servicing rights | 436 |  | 826 |  | 826 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative asset | 5883 |  | 5883 |  | 5883 |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 2262647 |  |  | 2261666 | 2261666 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | 5390 |  | 5390 |  | 5390 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 98000 |  | 98835 |  | 98835 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt | 19751 |  | 15876 |  | 15876 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 903 |  |  | 903 | 903 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities | 5883 |  | 5883 |  | 5883 |

---

**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 our entire holdings of a particular financial instrument. Where quoted market prices are not available, 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. Changes in assumptions could significantly affect the estimates.

**18. SEGMENT**

The Company operates as a single reportable segment under ASC 280, as the Chief Operating Decision Maker ("CODM") reviews financial performance and allocates resources based on the consolidated results of the Company as a whole. The Company, through its bank subsidiary, provides banking services to individuals and companies primarily in Hampden County and Hampshire County in western Massachusetts and the Capital Region in northern Connecticut. These services include commercial lending, residential lending and consumer lending, checking, savings, time deposits, cash management, and wealth management. The CODM primarily evaluates performance using net interest income and net income as reported in the consolidated statement of income. The Company's primary measure of profitability is net interest and dividend income. Net interest and dividend income is the difference between the interest income earned on interest-earning assets and the interest paid on interest-bearing liabilities. Interest-earning assets consist primarily of commercial real estate loans, commercial and industrial loans, residential real estate loans and securities. Interest-bearing liabilities consist primarily of time deposits and money market accounts, demand deposits, savings accounts and borrowings from the FHLB. The consolidated results of operations also depend on the provision for credit losses, non-interest income, and non-interest expense. In addition, the CODM considers net income as a key measure of overall financial performance. The Company's CODM consists of members of the Senior Management team, including the Chief Executive Officer, the Chief Financial Officer, the Chief Banking Officer and the Chief Lending Officer.&nbsp;&nbsp;&nbsp;&nbsp;

**19. CONDENSED PARENT COMPANY FINANCIAL STATEMENTS** 

The condensed balance sheets of the parent company are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| **ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | $604 | $422 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in subsidiaries | 252553 | 240994 |
| &nbsp;&nbsp;&nbsp;&nbsp;ESOP loan receivable | 1795 | 2417 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 14680 | 14575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $269632 | $258408 |
| **LIABILITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;ESOP loan payable | $1795 | $2417 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 20200 | 20081 |
| **EQUITY** | 247637 | 235910 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND EQUITY** | $269632 | $258408 |

---

The condensed statements of net income for the parent company are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **INCOME:** |  |  |  |
| Dividends from subsidiaries | $12955 | $14209 | $12119 |
| ESOP loan interest income | 193 | 244 | 296 |
| Other income | 12 | 11 | 36 |
| &nbsp;&nbsp;&nbsp;Total income | 13160 | 14464 | 12451 |
| **OPERATING EXPENSE:** |  |  |  |
| Salaries and employee benefits | 1817 | 1408 | 1761 |
| ESOP loan interest expense | 193 | 244 | 296 |
| Other expenses | 1358 | 1285 | 1310 |
| &nbsp;&nbsp;&nbsp;Total operating expense | 3368 | 2937 | 3367 |
| Income before equity in undistributed income of subsidiaries and income taxes | 9792 | 11527 | 9084 |
| Equity in undistributed income (loss) of subsidiaries | 5002 | (255) | 5591 |
| Net income before taxes | 14794 | 11272 | 14675 |
| Income tax benefit | (475) | (394) | (393) |
| &nbsp;&nbsp;&nbsp;**Net income** | $15269 | $11666 | $15068 |

---

The condensed statements of cash flows of the parent company are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **OPERATING ACTIVITIES:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $15269 | $11666 | $15068 |
| &nbsp;&nbsp;&nbsp;Equity in undistributed (income) loss of subsidiaries | (5002) | 255 | (5591) |
| &nbsp;&nbsp;&nbsp;Net amortization of premiums on subordinated debt | 39 | 39 | 39 |
| &nbsp;&nbsp;&nbsp;Change in other liabilities | (621) | (844) | (881) |
| &nbsp;&nbsp;&nbsp;Change in other assets | 517 | (162) | 651 |
| &nbsp;&nbsp;&nbsp;Other, net | 1789 | 2041 | 1979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 11991 | 12995 | 11265 |
| **INVESTING ACTIVITIES:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of securities | (62) | (82) | (103) |
| &nbsp;&nbsp;&nbsp;Redemption of securities | 62 | 82 | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities |  |  |  |
| **FINANCING ACTIVITIES:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash dividends paid | (5712) | (5914) | (6066) |
| &nbsp;&nbsp;&nbsp;Common stock repurchased | (6097) | (7599) | (5022) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (11809) | (13513) | (11088) |
| **NET CHANGE IN CASH AND CASH EQUIVALENTS** | 182 | (518) | 177 |
| **CASH AND CASH EQUIVALENTS** |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 422 | 940 | 763 |
| &nbsp;&nbsp;&nbsp;End of year | $604 | $422 | $940 |
| Supplemental cash flow information: |  |  |  |
| Net change in due to broker for common stock repurchased | $(163) | $163 | $— |

---

**20.** **SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED)** 

The following tables present a summary of our quarterly financial information for the periods indicated. The year-to-date totals may differ slightly due to rounding. All unaudited interim financial statements furnished shall reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for interim periods presented and are of a normal and recurring nature, unless otherwise noted.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** |
|  | **First Quarter** | **Second Quarter** | **Third Quarter** | **Fourth Quarter** |
|  | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) |
| Interest and dividend income | $28437 | $29612 | $30033 | $30537 |
| Interest expense | 12903 | 11970 | 11941 | 11708 |
| &nbsp;&nbsp;&nbsp;**Net interest and dividend income** | 15534 | 17642 | 18092 | 18829 |
| Provision for (reversal of) credit losses | 142 | (615) | 1293 | (485) |
| Unrealized (loss) gain on marketable equity securities, net | (5) | 25 | 22 | (7) |
| Gain on non-marketable equity investments |  | 243 |  |  |
| Gain on mortgage banking activities | 7 | 4 |  |  |
| Other non-interest income | 2757 | 3139 | 3151 | 3180 |
| &nbsp;&nbsp;&nbsp;**Non-interest income** | 2759 | 3411 | 3173 | 3173 |
| **Non-interest expense** | 15184 | 15656 | 15778 | 15870 |
| Income before income taxes | 2967 | 6012 | 4194 | 6617 |
| Income tax provision | 664 | 1422 | 1027 | 1408 |
| &nbsp;&nbsp;&nbsp;**Net income** | $2303 | $4590 | $3167 | $5209 |
| Basic earnings per share | $0.11 | $0.23 | $0.16 | $0.26 |
| Diluted earnings per share | $0.11 | $0.23 | $0.16 | $0.26 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** |
|  | **First Quarter** | **Second Quarter** | **Third Quarter** | **Fourth Quarter** |
|  | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) |
| Interest and dividend income | $26604 | $26802 | $27840 | $28586 |
| Interest expense | 11258 | 12332 | 13112 | 13313 |
| &nbsp;&nbsp;&nbsp;**Net interest and dividend income** | 15346 | 14470 | 14728 | 15273 |
| (Reversal of) provision for credit losses | (550) | (294) | 941 | (762) |
| Loss on disposal of premises and equipment | (6) |  |  |  |
| Unrealized gain (loss) on marketable equity securities, net | 8 | 4 | 10 | (9) |
| Gain on non-marketable equity investments |  | 987 |  | 300 |
| Gain (loss) on sale of mortgages |  |  | 246 | (11) |
| Other non-interest income | 2672 | 2843 | 2885 | 2974 |
| &nbsp;&nbsp;&nbsp;**Non-interest income** | 2674 | 3834 | 3141 | 3254 |
| **Non-interest expense** | 14782 | 14314 | 14406 | 14926 |
| Income before income taxes | 3788 | 4284 | 2522 | 4363 |
| Income tax provision | 827 | 771 | 618 | 1075 |
| &nbsp;&nbsp;&nbsp;**Net income** | $2961 | $3513 | $1904 | $3288 |
| Basic earnings per share | $0.14 | $0.17 | $0.09 | $0.16 |
| Diluted earnings per share | $0.14 | $0.17 | $0.09 | $0.16 |

---

**PART IV**

---

| | |
|:---|:---|
| **ITEM 15.** | **EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.** |

---

---

| | |
|:---|:---|
| **(a)(1)** | **Financial Statements** |

---

Reference is made to our consolidated financial statements and accompanying notes included in Item 8 of Part II hereof.

---

| | |
|:---|:---|
| **(a)(2)** | **Financial Statements** |

---

Consolidated financial statement schedules have been omitted because the required information is not present, or not present in amounts sufficient to require submission of the schedules, or because the required information is provided in the consolidated financial statements or notes thereto.

---

| | |
|:---|:---|
| **(a)(3)** | **Exhibits** |

---

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| 3.1 | [Restated Articles of Organization of Western New England Bancorp, Inc. (incorporated by reference to Exhibit 3.1 of the Form 8-K filed with the SEC on October 26, 2016).](http://www.sec.gov/Archives/edgar/data/1157647/000119312516746879/d275265dex31.htm) |
| 3.2 | [Amended and Restated Bylaws of Western New England Bancorp, Inc. (incorporated by reference to Exhibit 3.1 of the Form 8-K filed with the SEC on February 2, 2017).](http://www.sec.gov/Archives/edgar/data/1157647/000119312517029345/d335597dex31.htm) |
| 4.1 | [Form of Stock Certificate of Western New England Bancorp, Inc. (f/k/a Westfield Financial, Inc.) (incorporated by reference to Exhibit 4.1 of the Registration Statement on Form S-1 (No. 333-137024) filed with the SEC on August 31, 2006).](http://www.sec.gov/Archives/edgar/data/1157647/000119312506183606/dex41.htm) |
| 4.2 | [Description of Securities Registered Under Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to Exhibit 4.2 of the Form 10-K filed with the SEC on March 10, 2026).](https://www.sec.gov/Archives/edgar/data/1157647/000199937126005514/ex4-2.htm) |
| 10.1\* | [Form of Director's Deferred Compensation Plan (incorporated by reference to Exhibit 10.7 of the Form 8-K filed with the SEC on December 22, 2005).](http://www.sec.gov/Archives/edgar/data/1157647/000091064705000334/wesfk7-107.txt) |
| 10.2\* | [Amended and Restated Benefit Restoration Plan of Western New England Bancorp, Inc. (f/k/a Westfield Financial, Inc.) (incorporated by reference to Exhibit 10.5 of the Form 8-K filed with the SEC on October 29, 2007).](http://www.sec.gov/Archives/edgar/data/1157647/000095015607000681/ex10-5.txt) |
| 10.3\* | [Amended and Restated Employment Agreement between James C. Hagan and Westfield Bank (incorporated by reference to Exhibit 10.9 of the Form 8-K filed with the SEC on January 5, 2009).](http://www.sec.gov/Archives/edgar/data/1157647/000095015609000001/ex109.htm) |
| 10.4\* | [Amended and Restated Employment Agreement between James C. Hagan and Western New England Bancorp, Inc. (f/k/a Westfield Financial, Inc.) (incorporated by reference to Exhibit 10.12 of the Form 8-K filed with the SEC on January 5, 2009).](http://www.sec.gov/Archives/edgar/data/1157647/000095015609000001/ex1012.htm) |
| 10.5\* | [Employment Agreement between Leo R. Sagan, Jr. and Westfield Bank (incorporated by reference to Exhibit 10.15 of the Form 8-K filed with the SEC on January 5, 2009).](http://www.sec.gov/Archives/edgar/data/1157647/000095015609000001/ex1015.htm) |
| 10.6\* | [Employment Agreement between Leo R. Sagan, Jr. and Western New England Bancorp, Inc. (f/k/a Westfield Financial, Inc.) (incorporated by reference to Exhibit 10.16 of the Form 8-K filed with the SEC on January 5, 2009).](http://www.sec.gov/Archives/edgar/data/1157647/000095015609000001/ex1016.htm) |
| 10.7\* | [Employment Agreement between Allen J. Miles, III and Westfield Bank (incorporated by reference to Exhibit 10.19 of the Form 8-K filed with the SEC on January 5, 2009).](http://www.sec.gov/Archives/edgar/data/1157647/000095015609000001/ex1019.htm) |
| 10.8\* | [Employment Agreement between Allen J. Miles, III and Western New England Bancorp, Inc. (f/k/a Westfield Financial, Inc.) (incorporated by reference to Exhibit 10.20 of the Form 8-K filed with the SEC on January 5, 2009).](http://www.sec.gov/Archives/edgar/data/1157647/000095015609000001/ex1020.htm) |
| 10.9\* | [Employment Agreement between Darlene M. Libiszewski and Western New England Bancorp, Inc. (f/k/a Westfield Financial, Inc.) (incorporated by reference to Exhibit 10.4 of the Registration Statement on Form S-4 (No. 333-212221) filed with the SEC on June 24, 2016).](http://www.sec.gov/Archives/edgar/data/1157647/000119312516631120/d180045dex104.htm) |
| 10.10\* | [Employment Agreement between Darlene M. Libiszewski and Westfield Bank (incorporated by reference to Exhibit 10.5 of the Registration Statement on Form S-4 (No. 333-212221) filed with the SEC on June 24, 2016).](http://www.sec.gov/Archives/edgar/data/1157647/000119312516631120/d180045dex105.htm) |
| 10.11\* | [Employment Agreement between Guida R. Sajdak and Western New England Bancorp (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the SEC on February 8, 2018).](http://www.sec.gov/Archives/edgar/data/1157647/000119312518036254/d444158dex101.htm) |
| 10.12\* | [Employment Agreement between Guida R. Sajdak and Westfield Bank (incorporated by reference to Exhibit 10.2 of the Form 8-K filed with the SEC on February 8, 2018).](http://www.sec.gov/Archives/edgar/data/1157647/000119312518036254/d444158dex102.htm) |
| 10.13\* | [Employment Agreement between Kevin C. O'Connor and Westfield Bank dated February 17, 2017 (incorporated by reference to Exhibit 10.20 of the Form 10-K filed with the SEC on March 11, 2021).](http://www.sec.gov/Archives/edgar/data/1157647/000138713121003468/ex10-20.htm) |
| 10.14\* | [Employment Agreement between Kevin C. O'Connor and Western New England Bancorp, Inc. dated February 17, 2017 (incorporated by reference to Exhibit 10.21 of the Form 10-K filed with the SEC on March 11, 2021).](http://www.sec.gov/Archives/edgar/data/1157647/000138713121003468/ex10-21.htm) |
| 10.15\* | [Employment Agreement between John Bonini and Western New England Bancorp dated February 22, 2024 (incorporated by reference to Exhibit 10.16 of the Form 10-K filed with the SEC on March 8, 2024).](http://www.sec.gov/Archives/edgar/data/1157647/000199937124003319/ex10-16.htm) |
| 10.16\* | [Employment Agreement between John Bonini and Westfield Bank dated February 22, 2024 (incorporated by reference to Exhibit 10.17 of the Form 10-K filed with the SEC on March 8, 2024).](http://www.sec.gov/Archives/edgar/data/1157647/000199937124003319/ex10-17.htm) |
| 10.17\* | [Employment Agreement between Christine Phillips and Western New England Bancorp dated as of February 22, 2024(incorporated by reference to Exhibit 10.19 of the Form 10-K filed with the SEC on March 8, 2024).](http://www.sec.gov/Archives/edgar/data/1157647/000199937124003319/ex10-19.htm) |

---

---

| | |
|:---|:---|
| 10.18\* | [Employment Agreement between Christine Phillips and Westfield Bank dated as of February 22, 2024(incorporated by reference to Exhibit 10.20 of the Form 10-K filed with the SEC on March 8, 2024).](http://www.sec.gov/Archives/edgar/data/1157647/000199937124003319/ex10-20.htm) |
| 10.19\* | [Employment Agreement between Filipe B. Goncalves and Western New England Bancorp dated as of January 1, 2021 (incorporated by reference to Exhibit 10.19 of the Form 10-K filed with the SEC on March 10, 2023).](http://www.sec.gov/Archives/edgar/data/1157647/000138713123003325/ex10-19.htm) |
| 10.20\* | [Employment Agreement between Filipe B. Goncalves and Westfield Bank dated as of January 1, 2021 (incorporated by reference to Exhibit 10.20 of the Form 10-K filed with the SEC on March 10, 2023).](http://www.sec.gov/Archives/edgar/data/1157647/000138713123003325/ex10-20.htm) |
| 10.21\* | [Western New England Bancorp, Inc. 2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 of the Form S-8 filed with the SEC on May 19, 2021).](http://www.sec.gov/Archives/edgar/data/1157647/000138713121005832/ex10-1.htm) |
| 10.22\* | [Western New England Bancorp, Inc. Amended and Restated 2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 4.4 of the Form S-8 filed with the SEC on May 19, 2025).](http://www.sec.gov/Archives/edgar/data/1157647/000199937125006064/ex10-1.htm) |
| 10.23\* | [Form of Incentive Stock Option Agreement under the Western New England Bancorp, Inc. 2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.2 of the Form S-8 filed with the SEC on May 19, 2021).](http://www.sec.gov/Archives/edgar/data/1157647/000138713121005832/ex10-2.htm) |
| 10.24\* | [Form of Non-Qualified Stock Option Agreement under the Western New England Bancorp, Inc. 2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.3 of the Form S-8 filed with the SEC on May 19, 2021).](http://www.sec.gov/Archives/edgar/data/1157647/000138713121005832/ex10-3.htm) |
| 10.25\* | [Form of Director Incentive Award Agreement under the Western New England Bancorp, Inc. 2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.4 of the Form S-8 filed with the SEC on May 19, 2021).](http://www.sec.gov/Archives/edgar/data/1157647/000138713121005832/ex10-4.htm) |
| 10.26\* | [Form of Restricted Stock Award Agreement under the Western New England Bancorp, Inc. 2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.5 of the Form S-8 filed with the SEC on May 19, 2021).](http://www.sec.gov/Archives/edgar/data/1157647/000138713121005832/ex10-5.htm) |
| 10.27\* | [Form of Long-Term Incentive and Retention Equity Award Agreement under the Western New England Bancorp, Inc. 2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.6 of the Form S-8 filed with the SEC on May 19, 2021).](http://www.sec.gov/Archives/edgar/data/1157647/000138713121005832/ex10-6.htm) |
| 10.28\* | [Westfield Bank Non-Qualified Deferred Compensation Plan (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the SEC on September 29, 2023).](http://www.sec.gov/Archives/edgar/data/1157647/000138713123011800/ex10-1.htm) |
| 19.1\* | [Western New England Bancorp, Inc. Insider Trading Policy as Adopted by the Board of Directors on February 25, 2025 (incorporated by reference to Exhibit 19.1 of the Form 10-K filed with the SEC on March 10, 2025).](https://www.sec.gov/Archives/edgar/data/1157647/000183988225014778/ex19-1.htm) |
| 21.1 | [Subsidiaries of Western New England Bancorp, Inc. (incorporated by reference to Exhibit 21.1 of the Form 10-K filed with the SEC on March 10, 2026).](https://www.sec.gov/Archives/edgar/data/1157647/000199937126005514/ex21-1.htm) |
| 23.1 | [Consent of Wolf & Company, P.C. (incorporated by reference to Exhibit 23.1 of the Form 10-K filed with the SEC on March 10, 2026).](https://www.sec.gov/Archives/edgar/data/1157647/000199937126005514/ex23-1.htm) |
| 31.1† | [Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex31-1.htm) |
| 31.2† | [Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex31-2.htm) |
| 32.1† | [Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32-1.htm) |
| 32.2† | [Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32-2.htm) |
| 97\* | [Western New England Bancorp, Inc. Incentive Compensation Recovery Policy as Adopted by the Board of Directors on November 20, 2023 (incorporated by reference to Exhibit 97 of the Form 10-K filed with the SEC on March 8, 2024).](http://www.sec.gov/Archives/edgar/data/1157647/000199937124003319/ex97.htm) |

---

---

| | |
|:---|:---|
| 101\*\* | Financial statements from the annual report on Form 10-K of Western New England Bancorp, Inc. for the year ended December 31, 2025, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Net Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders' Equity, (v) the Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

---

| | |
|:---|:---|
| † | Filed herewith. |
| \* | Management contract or compensatory plan or arrangement. |
| \*\* | Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |

---

**SIGNATURES** 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on March 16, 2026.

---

| | |
|:---|:---|
| **WESTERN NEW ENGLAND BANCORP, INC.** | **WESTERN NEW ENGLAND BANCORP, INC.** |
| By: | /s/ James C. Hagan |
|  | James C. Hagan |
|  | Chief Executive Officer and President |
|  | (Principal Executive Officer) |

---

## Exhibit 31.1

[Western New England Bancorp, Inc. 10-K/A](wneb-10ka_123125.htm)

**Exhibit 31.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER** 

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, James C. Hagan, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K of Western New England Bancorp, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant
as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known
to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting,
or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on
such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses
in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: March 16, 2026 | /s/ James C. Hagan |
|  | James C. Hagan |
|  | Chief Executive Officer and President |

---

## Exhibit 31.2

[Western New England Bancorp, Inc. 10-K/A](wneb-10ka_123125.htm)

**Exhibit 31.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Guida R. Sajdak, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K of Western New England Bancorp, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant
as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known
to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting,
or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on
such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (Western New
England Bancorp's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses
in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: March 16, 2026 | /s/ Guida R. Sajdak |
|  | Guida R. Sajdak |
|  | Chief Financial Officer and Executive Vice President |
|  | (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

[Western New England Bancorp, Inc. 10-K/A](wneb-10ka_123125.htm)

**Exhibit 32.1**

**statement furnished pursuant to section 906 of the<br> sarbanes-oxley act of 2002, 18 u.s.c. section 1350**

The undersigned, James C. Hagan, is the Chief Executive Officer and President of Western New England Bancorp, Inc. ("Western New England Bancorp").

This statement is being furnished in connection with the filing by Western New England Bancorp of Western New England Bancorp's Annual Report on Form 10-K for the period ended December 31, 2025 (the "Report").

By execution of this statement, I certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the
Securities Exchange Act of 1934, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) the information contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of Western New England Bancorp as of the dates and for the periods covered by the Report.

This statement is authorized to be attached as an exhibit to the Report so that this statement will accompany the Report at such time as the Report is filed with the Securities and Exchange Commission, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. It is not intended that this statement be deemed to be filed for purposes of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to Western New England Bancorp, Inc. and will be retained by Western New England Bancorp, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

---

| | |
|:---|:---|
| Dated: March 16, 2026 | /s/ James C. Hagan |
|  | James C. Hagan |
|  | Chief Executive Officer and President |
|  | (Principal Executive Officer) |

---

## Exhibit 32.2

[Western New England Bancorp, Inc. 10-K/A](wneb-10ka_123125.htm)

**Exhibit 32.2**

**statement furnished pursuant to section 906 of the<br> sarbanes-oxley act of 2002, 18 u.s.c. section 1350**

The undersigned, Guida R. Sajdak, Chief Financial Officer and Executive Vice President of Western New England Bancorp, Inc. ("Western New England Bancorp").

This statement is being furnished in connection with the filing by Western New England Bancorp, Inc. of Western New England Bancorp, Inc.'s Annual Report on Form 10-K for the period ended December 31, 2025 (the "Report").

By execution of this statement, I certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the
Securities Exchange Act of 1934, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) the information contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of Western New England Bancorp as of the dates and for the periods covered by the Report.

This statement is authorized to be attached as an exhibit to the Report so that this statement will accompany the Report at such time as the Report is filed with the Securities and Exchange Commission, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. It is not intended that this statement be deemed to be filed for purposes of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to Western New England Bancorp, Inc. and will be retained by Western New England Bancorp, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

---

| | |
|:---|:---|
| Dated: March 16, 2026 | /s/ Guida R. Sajdak |
|  | Guida R. Sajdak |
|  | Chief Financial Officer and Executive Vice President |
|  | (Principal Financial and Accounting Officer) |

---