Financial Analysis

11. COMMITMENTS AND CONTINGENCIES The Company is at times, and in the ordinary course of business, subject to legal actions. Management believes that losses, if any, resulting from current legal actions will not have a material adverse effect on the Companys consolidated financial condition or results of operations. The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and involve, to varying degrees, elements of credit, market, and interest rate risk more than the amounts recognized in the consolidated statements of financial condition. The Companys exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. As of the dates indicated, the following financial instruments were outstanding whose contract amounts represent credit risk: June 30, December 31, 2025 2024 Unaudited Commitments to Grant Loans $ 265 $ 787 Performance Standby Letters of Credit $ 127 $ 127 Unfunded Commitments Under Lines of Credit $ 28,695 $ 27,066 Commitments to extend credit are agreements to lend to a customer if there is no violation of any conditions established in the contract. Commitments generally have …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

9. EMPLOYEE BENEFIT PLANS Supplemental Executive Retirement Plan (SERP) Beginning in 2016, the Company instituted a SERP for its executive officers. All benefits provided under the SERP are unfunded and, as the executive officers retire, the Company will make a payment to the participant. At June 30, 2025 and December 31, 2024, the Company recorded $206,000 (unaudited) and $194,000, for the SERP in other liabilities on the consolidated statements of financial condition. Expenses for the SERP are included in compensation and employee benefits on the consolidated statements of income and were approximately $6,299 (unaudited) and $17,468 (unaudited), respectively, for the three months ended June 30, 2025 and 2024 and $12,597 and $23,291, respectively, for the six months ended June 30, 2025 and 2024. Defined Benefit Plan The Company provides pension benefits for eligible employees through a noncontributory defined benefit pension plan (the Pension Plan). Substantially all employees participate in the retirement plan on a noncontributing basis and are fully vested after five years of service. On October 13, 2017, the Compensation Committee elected to soft-freeze the defined benefit pension plan effective January 1, 2018. All employees hired after that date will not be eligible to participate in the defined benefit pension plan; they will, however, be able to participate in a 401k plan that the Company will match up to 50% of the employee elected contribution amount capped at 5% of …

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7. BORROWINGS Advances from the Federal Home Loan Bank of New York (FHLBNY) reflect advances borrowed from the FHLBNY. The FHLBNY charges a substantial prepayment penalty for early payoff of an advance. The unamortized balances on advances at June 30, 2025 and December 31, 2024 are summarized as follows: June 30, December 31, 2025 2024 Unaudited Term Advances: Advanced February 25, 2020 - Due February 25, 2025 - bearing interest at 1.52% fixed rate 1,000 Advanced March 5, 2020 - Due March 5, 2025 - bearing interest at 1.12% fixed rate 3,500 Advanced March 12, 2020 - Due March 12, 2025 - bearing interest at 1.42% fixed rate 1,000 Advanced November 30, 2022 - Due November 30, 2027 - bearing interest at 4.24% fixed rate 2,000 2,000 Advanced December 30, 2022 - Due December 30, 2025 - bearing interest at 4.54% fixed rate 2,000 2,000 Advanced December 30, 2022 - Due December 30, 2026 - bearing interest at 4.42% fixed rate 2,000 2,000 Advanced January 12, 2023 - Due January 12, 2028 - bearing interest at 3.85% fixed rate 2,000 2,000 Advanced March 10, 2023 - Due March 10, 2028 - bearing interest at 4.38% fixed rate 6,000 6,000 Advanced July 19, 2023 - Due July 19, 2027 - bearing interest at 4.49% fixed rate 1,000 1,000 Advanced September 11, 2023 - Due September 11, 2028 - bearing interest at 4.72% fixed rate 3,000 3,000 Advanced September 13, 2023 - Due September 14, 2026 - bearing interest at 4.61% fixed rate 2,000 2,000 Advanced September 26, 2023 - Due September 28, 2026 - bear …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

10. FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS Management uses its best judgment in estimating the fair value of the Companys assets and liabilities; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all assets and liabilities, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been re-evaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of assets and liabilities subsequent to the respective reporting dates may be different than the amounts reported at each year-end. Accounting guidance establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Adoption of New Accounting Standards In December 2023, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2023-09 - Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, to provide more transparency about income tax information through improvements to income tax disclosures. Specifically, the update requires enhancements to the rate reconciliation, including disclosure of specific categories and additional information for reconciling items meeting a quantitative threshold, and greater disaggregation of income tax disclosures related to income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. Other than meeting the new disclosure requirements, the adoption of this guidance is not expected to have a material impact on the Companys consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures, to improve the reportable segment disclosures by requiring disclosure of incremental segment information on an annual and interim basis. In addition, the amendments will enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. The ASU does not change how a public e …

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15. SEGMENT INFORMATION The Company has two primary business segments, its community banking franchise, and its wealth management agency. The community banking segment provides financial services to consumers and businesses principally in the Greater Syracuse Area and Onondaga County of New York State. These services include providing various types of loans to customers, accepting deposits, mortgage banking, and other traditional banking services. Parent company income is included in the community-banking segment, as the majority of effort for these functions is related to this segment. Major revenue sources include net interest income and service fees on deposit accounts. Expenses include personnel and branch-network support charges. The wealth management agency segment offers individual investment management for individuals in the Greater Syracuse Area. The primary revenue source is commissions from 401(k) management and brokered accounts. The Companys Chief Financial Officer is the chief operating decision maker (CODM). The CODM evaluates the financial performance of the Companys components such as evaluating revenue streams, significant expenses, and budget to actual results in assessing the performance of the Companys segments in the determination of allocating resources. Financial information regarding each significant segment expense outlined below is regularly provided (at least monthly) to the CODM. For the community banking segment, interest expense is a significant …

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Adoption of New Accounting Standards In December 2023, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2023-09 - Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, to provide more transparency about income tax information through improvements to income tax disclosures. Specifically, the update requires enhancements to the rate reconciliation, including disclosure of specific categories and additional information for reconciling items meeting a quantitative threshold, and greater disaggregation of income tax disclosures related to income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. Other than meeting the new disclosure requirements, the adoption of this guidance is not expected to have a material impact on the Companys consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures, to improve the reportable segment disclosures by requiring disclosure of incremental segment information on an annual and interim basis. In addition, the amendments will enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requir …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing