28 unchanged sentences
In 2006, the Office of the Comptroller of the Currency, the FDIC and the Board of Governors of the Federal Reserve System (collectively, the “Agencies”) issued joint guidance entitled “Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices” (the “CRE Guidance”).
−Removed: Although the CRE Guidance did not establish
−Removed: specific lending limits, it provides that a bank’s commercial real estate lending exposure could receive increased supervisory scrutiny where total non-owner-occupied commercial real estate loans, including loans secured by apartment buildings, investor commercial real estate, and construction and land loans, represent 300% or more of an institution’s total risk-based capital, and the outstanding balance of the commercial real estate loan portfolio has increased by 50% or more during the preceding 36 months.
+Added: Although the CRE Guidance did not establish specific lending limits, it provides that a bank’s commercial real estate lending exposure could receive increased supervisory scrutiny where total non-owner-occupied commercial real estate loans, including loans secured by apartment buildings, investor commercial real estate, and construction and land loans, represent 300% or more of an institution’s total risk-based capital, and the outstanding balance of the commercial real estate loan portfolio has increased by 50% or more during the preceding 36 months.
Construction loans represented 485% of the Bank’s total risk-based capital at December 31, 2024, and our multifamily, mixed-use and nonresidential real estate loan portfolio represented 90% of the Bank’s total risk-based capital on that same date.
6 unchanged sentences
At December 31, 2024, $118.7 million, or 6.6%, of our loan portfolio consisted of commercial and industrial loans.
−Removed: Commercial and industrial loans generally expose a lender to a greater risk of loss than one- to four-family residential loans.
+Added: Commercial and industrial loans generally expose a lender to a greater risk of loss than one- to four-family
+Added: residential loans.
Repayment of commercial and industrial loans generally is dependent, in large part, on sufficient income from the business to cover operating expenses and debt service.
13 unchanged sentences
In addition, our banking regulators periodically review our allowance for credit losses – loans and could require us to increase our provision for credit losses.
−Removed: Any increase in our allowance for credit losses or credit charge-offs
−Removed: resulting from these regulatory reviews may have a material adverse effect on our results of operations and financial condition.
+Added: Any increase in our allowance for credit losses or credit charge-offs resulting from these regulatory reviews may have a material adverse effect on our results of operations and financial condition.
The geographic concentration of our loan portfolio and lending activities makes us vulnerable to a downturn in our primary market area.
3 unchanged sentences
Construction loans originated in Bronx County are also located in high demand, high absorption areas.
−Removed: At December 31, 2023, $1.1 billion, or 92.4% of our construction loan portfolio and 76.7% of our loan portfolio, represented loans made in high absorption areas of these four counties of New York.
−Removed: This may make us vulnerable to a downturn in the local economy and real estate markets and to a decrease in new construction in these counties.
−Removed: Adverse conditions in the local economy such as unemployment, recession, a catastrophic event or other factors beyond our control could impact the ability of our borrowers to repay their loans, which could impact our net interest income.
+Added: At December 31, 2024, $1.3 billion of our construction loan portfolio, or 92.3% of our construction loan portfolio and 72.7% of our total loan portfolio, represented loans made in the high absorption areas of these four counties of New York.
+Added: In addition, at December 31, 2024, $159.8 million, or 60.9% of our multifamily, mixed use and non-residential real estate loan portfolio and 8.8% of our total loan portfolio, represented loans made in the Boston Metropolitan Area.
+Added: Furthermore, at December 31, 2024, $96.1 million, or 36.6% of our multifamily, mixed-use and non-residential real estate loan portfolio and 5.3% of our total loan portfolio, represented loans made in the New York Metropolitan Area.
+Added: This might make us vulnerable to a downturn in the local economy and real estate markets and to a decrease in new construction in these counties.
+Added: Adverse conditions in the local economy such as unemployment, recession, a
+Added: catastrophic event or other factors beyond our control could impact the ability of our borrowers to repay their loans, which could impact our net interest income.
Decreases in local real estate values caused by economic conditions, changes in tax laws or other events could adversely affect the value of the property used as collateral for our loans, which could cause us to realize a loss in the event of a foreclosure.
15 unchanged sentences
This competition could make it difficult for us to originate new loans and attract new deposits.
−Removed: While we believe that our long-standing presence in our market areas in New York and Massachusetts, and our personal service philosophy enhance our ability to compete favorably in attracting and retaining individual and business customers, price competition for loans may result in originating fewer loans, or earning
−Removed: less on our loans and price competition for deposits may result in a reduction of our deposit base of paying more on deposits.
+Added: While we believe that our long-standing presence in our market areas in New York and Massachusetts, and our personal service philosophy enhance our ability to compete favorably in attracting and retaining individual and business customers, price competition for loans may result in originating fewer loans, or earning less on our loans and price competition for deposits may result in a reduction of our deposit base of paying more on deposits.
Risks Related to Our Operations
28 unchanged sentences
The profitability of our expansion strategy will depend on whether the income that we generate from the new branch offices will offset the increased expenses resulting from establishing and operating these branch offices.
+Added: Risks Related to Our Payment of Dividends
+Added: Our dividend policy may change without notice and any payment of dividends in the future is subject to the discretion of our Board of Directors.
+Added: The holders of our common stock will receive cash dividends if and when declared by our Board of Directors out of legally available funds.
+Added: The Company has historically paid a quarterly cash dividend to stockholders.
+Added: year ended December 31, 2024, the Company increased the quarterly cash dividends to $0.10 per share on March 21, 2024 and $0.15 per share on September 19, 2024 from $0.06 per share prior to 2024.
+Added: Although we have a history of paying cash dividends, we have no obligation to continue paying dividends.
+Added: Any future determination relating to our dividend policy will be made at the discretion of our board of directors and will depend on a number of factors, including our future earnings, capital requirements and alternative uses for capital, financial condition, future prospects, regulatory restrictions, and other factors that our board of directors may deem relevant.
+Added: Our principal business operations are conducted through our subsidiary, the Bank, and the ability of the Bank to pay dividends to us will continue to be subject to, and limited by, certain legal and regulatory restrictions.
+Added: Further, any lenders making loans to us may impose financial covenants that may be more restrictive with respect to dividend payments than the regulatory requirements.
Risks Related to Our Business and Industry Generally
20 unchanged sentences
In March 2023, Silicon Valley Bank and Signature Bank experienced large deposit outflows coupled with insufficient liquidity to meet withdrawal demands, resulting in the institutions being placed into FDIC receivership.
−Removed: Additionally, in May 2023, First Republic Bank experienced similar circumstances which resulted in the institution
−Removed: being placed in FDIC receivership.
+Added: Additionally, in May 2023, First Republic Bank experienced similar circumstances which resulted in the institution being placed in FDIC receivership.
In the aftermath of these events, there has been substantial market disruption and concerns that diminished depositor confidence could spread across the banking industry, leading to deposit outflows that could destabilize other institutions.
To strengthen public confidence in the banking system, the FDIC took action to protect funds held in uninsured deposit accounts at Silicon Valley Bank and Signature Bank following the placement of those institutions into receivership.
−Removed: However, the FDIC has not committed to protecting uninsured deposits in other institutions that experience outsized withdrawal demands.
−Removed: To further bolster the banking system, the Federal Reserve Board created a new Bank Term Funding Program to provide an additional source of liquidity.
−Removed: At December 31, 2023, we had uninsured deposits totaling $344.8 million and $102.7 million in available liquidity, including $68.7 million in cash, as well as $865.1 million in borrowing capacity at the FRBNY which was sufficient to cover our uninsured deposits.
+Added: However, the FDIC has not committed to protecting uninsured deposits in other
+Added: institutions that experience outsized withdrawal demands.
+Added: At December 31, 2024, we had uninsured deposits totaling $346.9 million and $115.0 million in available liquidity, including $78.3 million in cash, as well as $834.7 million in borrowing capacity at the FRBNY which was sufficient to cover our uninsured deposits as of December 31, 2024.
Notwithstanding our significant liquidity, large deposit outflows could adversely affect our financial condition and results of operations and could result in the closure of the Bank.
7 unchanged sentences
Companies are facing increasing scrutiny from customers, regulators, investors, and other stakeholders related to their environmental, social and governance (“ESG”) practices and disclosure.
−Removed: Investor advocacy groups, investment funds and influential investors are also increasingly focused on these practices, especially as they relate to the environment, health and safety, diversity, labor conditions and human rights.
+Added: Investor advocacy groups, investment funds and influential investors are also increasingly focused on these practices, especially as they relate to, among other things, the environment, health and safety, labor conditions and human rights.
Increased ESG related compliance costs could result in increases to our overall operational costs.
9 unchanged sentences
A key component of our business strategy is to rely on our reputation for customer service and knowledge of local markets to expand our presence by capturing new business opportunities from existing and prospective customers in our market area and contiguous areas.
−Removed: As such, we strive to conduct our business in an honorable manner that enhances our
+Added: As such, we strive to conduct our business in an honorable manner that enhances our reputation.
This is done, in part, by recruiting, hiring and retaining employees who share our core values of being an integral part of the communities we serve, delivering superior service to our customers and caring about our customers and communities.
25 unchanged sentences
In addition, technology has lowered barriers to entry into the financial services market and made it possible for financial technology companies and other non-bank entities to offer financial products and services traditionally provided by banks.
−Removed: ability to keep pace with technological change is important, and the failure to do so, due to cost, proficiency or otherwise, could have a material adverse impact on our business and therefore on our financial condition and results of operations.
+Added: The ability to keep pace with technological change is important, and the failure to do so, due to cost, proficiency or otherwise, could have a material adverse impact on our business and therefore on our financial condition and results of operations.
Acts of terrorism and other external events could impact our business.
4 unchanged sentences
The Bank is subject to extensive regulation, supervision and examination by the FDIC and the New York State Department of Financial Services.
−Removed: In addition, the Company is subject to extensive regulation, supervision and examination by the Federal Reserve Board and the New York State Department of Financial Services.
+Added: In addition, the Company is subject to extensive regulation, supervision and examination by the Federal Reserve Board.
Such regulation, supervision and examination govern the activities in which we may engage, and are intended primarily for the protection of the deposit insurance fund and the Bank’s depositors and not for the protection of our stockholders.
12 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.