4 unchanged sentences
(Dollars in thousands except per share data)
+Added: September 30,
2024 December 31,
4 unchanged sentences
Investment securities available for sale, at fair value 6,041 7,095
−Removed: Investment securities held to maturity, net of allowance for credit losses of $ 0 at June 30, 2024 and December 31, 2023 (fair value of $ 7,564 at June 30, 2024 and $ 7,892 at December 31, 2023)
+Added: Investment securities held to maturity, net of allowance for credit losses of $ 0 at September 30, 2024 and December 31, 2023 (fair value of $ 7,872 at September 30, 2024 and $ 7,892 at December 31, 2023)
Total investment securities 15,269 16,387
27 unchanged sentences
Preferred stock, 1,000,000 shares authorized, $ 1,000 liquidation value Series B non-cumulative convertible;
−Removed: 325 shares and 375 shares outstanding at June 30, 2024 and December 31, 2023, respectively
+Added: 325 shares and 375 shares outstanding at September 30, 2024 and December 31, 2023, respectively
Common stock, $ 0.10 par value;
authorized 15,000,000 shares;
−Removed: 12,254,220 shares and 12,240,821 shares at June 30, 2024 and December 31, 2023, respectively
+Added: 12,264,116 shares and 12,240,821 shares at September 30, 2024 and December 31, 2023, respectively
Additional paid-in capital 137,130 136,700
1 unchanged sentence
Accumulated other comprehensive loss ( 267 ) ( 404 )
−Removed: Treasury stock, 284,522 shares at June 30, 2024 and December 31, 2023, at cost
+Added: Treasury stock, 381,723 shares and 284,522 shares at September 30, 2024 and December 31, 2023, at cost
( 5,039 ) ( 3,015 )
7 unchanged sentences
For the Three Months Ended
−Removed: June 30, For the Six Months Ended
+Added: September 30, For the Nine Months Ended
+Added: September 30,
2024 2023 2024 2023
13 unchanged sentences
Service fees on deposit accounts 321 1,003 1,059 3,149
−Removed: Gain on sale of SBA loans 25 — 25 —
+Added: Gain (loss) on sale of SBA loans ( 3 ) — 23 —
Other loan fees 217 192 619 611
Bank owned life insurance income 166 153 488 443
+Added: Net gain on sale and valuation adjustment of OREO — 38 — 38
Other 200 449 975 972
26 unchanged sentences
For the Three Months Ended
−Removed: June 30, For the Six Months Ended
+Added: September 30, For the Nine Months Ended
+Added: September 30,
2024 2023 2024 2023
9 unchanged sentences
(Dollars in thousands except share data)
−Removed: Periods ended June 30, 2024
+Added: Periods ended September 30, 2024
Shares of Preferred Stock Outstanding Preferred
5 unchanged sentences
Three Months Ended
−Removed: Balance, March 31, 2024 375 $ 375 12,247,343 $ 1,225 $ 136,801 $ 153,430 $ ( 430 ) $ ( 3,015 ) $ 288,386
+Added: Balance, June 30, 2024 325 $ 325 12,254,220 $ 1,225 $ 136,946 $ 157,725 $ ( 406 ) $ ( 3,015 ) $ 292,800
Net income — — — — — 7,508 — — 7,508
−Removed: Preferred stock shares conversion ( 50 ) ( 50 ) 6,877 — 49 — — — ( 1 )
+Added: Common stock options exercised — — 9,896 1 111 — — — 112
+Added: Treasury stock purchase ( 100,000 of shares)
+Added: — — — — — — — ( 2,024 ) ( 2,024 )
Other comprehensive income — — — — — — 139 — 139
4 unchanged sentences
— — — — — ( 2,143 ) — — ( 2,143 )
−Removed: Balance, June 30, 2024
+Added: Balance, September 30, 2024
325 $ 325 12,264,116 $ 1,226 $ 137,130 $ 163,085 $ ( 267 ) $ ( 5,039 ) $ 296,460
−Removed: Six Months Ended
+Added: Nine Months Ended
Balance, December 31, 2023 375 $ 375 12,240,821 $ 1,224 $ 136,700 $ 149,437 $ ( 404 ) $ ( 3,015 ) $ 284,317
2 unchanged sentences
Preferred stock shares conversion ( 50 ) ( 50 ) 6,877 — 49 — — — ( 1 )
−Removed: Other comprehensive loss — — — — — — ( 2 ) — ( 2 )
+Added: Treasury stock purchase ( 100,000 of shares)
+Added: — — — — — — — ( 2,024 ) ( 2,024 )
+Added: Other comprehensive income — — — — — — 137 — 137
Stock compensation expense — — — — 215 — — — 215
3 unchanged sentences
— — — — — ( 6,450 ) — — ( 6,450 )
−Removed: Balance, June 30, 2024
+Added: Balance, September 30, 2024
325 $ 325 12,264,116 $ 1,226 $ 137,130 $ 163,085 $ ( 267 ) $ ( 5,039 ) $ 296,460
4 unchanged sentences
(Dollars in thousands except share data)
−Removed: Periods ended June 30, 2023
+Added: Periods ended September 30, 2023
Shares of Preferred Stock Outstanding Preferred
5 unchanged sentences
Three Months Ended
−Removed: Balance, March 31, 2023 445 $ 445 12,231,193 $ 1,223 $ 136,341 $ 138,577 $ ( 465 ) $ ( 3,015 ) $ 273,106
+Added: Balance, June 30, 2023 445 $ 445 12,231,193 $ 1,223 $ 136,447 $ 144,550 $ ( 510 ) $ ( 3,015 ) $ 279,140
Net income — — — — — 1,029 — — 1,029
5 unchanged sentences
— — — — — ( 2,150 ) — — ( 2,150 )
−Removed: Balance, June 30, 2023 445 $ 445 12,231,193 $ 1,223 $ 136,447 $ 144,550 $ ( 510 ) $ ( 3,015 ) $ 279,140
−Removed: Six Months Ended
+Added: Balance, September 30, 2023 445 $ 445 12,231,193 $ 1,223 $ 136,547 $ 143,422 $ ( 643 ) $ ( 3,015 ) $ 277,979
+Added: Nine Months Ended
Balance, December 31, 2022 445 $ 445 12,225,097 $ 1,223 $ 136,201 $ 131,706 $ ( 526 ) $ ( 3,015 ) $ 266,034
2 unchanged sentences
Common stock options exercised — — 6,096 — 33 — — — 33
−Removed: Other comprehensive income — — — — — — 16 — 16
+Added: Other comprehensive loss — — — — — — ( 117 ) — ( 117 )
Stock compensation expense — — — — 313 — — — 313
3 unchanged sentences
— — — — — ( 6,451 ) — — ( 6,451 )
−Removed: Balance, June 30, 2023 445 $ 445 12,231,193 $ 1,223 $ 136,447 $ 144,550 $ ( 510 ) $ ( 3,015 ) $ 279,140
+Added: Balance, September 30, 2023 445 $ 445 12,231,193 $ 1,223 $ 136,547 $ 143,422 $ ( 643 ) $ ( 3,015 ) $ 277,979
See accompanying notes to the unaudited consolidated financial statements
3 unchanged sentences
(Dollars in thousands)
−Removed: For the Six Months Ended
+Added: For the Nine Months Ended
+Added: September 30,
Cash Flows from Operating Activities:
7 unchanged sentences
Proceeds from sale of SBA loans originated for sale 323 —
+Added: Net gain on sale of OREO and valuation adjustments — ( 38 )
Net accretion of purchase premiums and discounts on securities ( 33 ) ( 28 )
9 unchanged sentences
(Purchases) sales of bank premises and equipment ( 72 ) 116
+Added: Proceeds from sale of OREO, net — 161
Redemptions of restricted stock 7,213 6,480
3 unchanged sentences
Cash dividends ( 6,466 ) ( 6,471 )
+Added: Treasury stock purchase ( 2,024 ) —
Proceeds from exercise of stock options 168 33
Conversion of Series B preferred stock ( 1 ) —
−Removed: Decrease in FHLBNY long-term borrowings ( 75,000 ) —
+Added: (Decrease) increase in FHLBNY long-term borrowings ( 75,000 ) 20,000
Net increase in FHLBNY short-term borrowings 95,000 8,000
−Removed: Increase in Federal Reserve short-term borrowings — 10,000
Net decrease in noninterest-bearing deposits ( 33,690 ) ( 121,430 )
−Removed: Net decrease in interest-bearing deposits ( 22,958 ) ( 48,042 )
−Removed: Net cash used in financing activities ( 10,649 ) ( 20,877 )
+Added: Net increase in interest-bearing deposits 39,746 78,430
+Added: Net cash provided by (used in) financing activities 17,733 ( 21,438 )
Net decrease in cash and cash equivalents ( 7,927 ) ( 55,410 )
Cash and Cash Equivalents, January 1, 180,376 182,150
−Removed: Cash and Cash Equivalents, June 30, $ 167,678 $ 137,497
+Added: Cash and Cash Equivalents, September 30, $ 172,449 $ 126,740
Supplemental Disclosure of Cash Flow Information:
23 unchanged sentences
The accompanying interim financial statements should be read in conjunction with the annual financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
−Removed: The accompanying interim financial statements for the three and six months ended June 30, 2024 and 2023 are unaudited.
+Added: The accompanying interim financial statements for the three and nine months ended September 30, 2024 and 2023 are unaudited.
The balance sheet as of December 31, 2023, was derived from the audited financial statements.
In the opinion of management, these financial statements include all normal and recurring adjustments necessary for a fair statement of the results for such interim periods.
−Removed: Results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results for the full year or any other period.
+Added: Results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results for the full year or any other period.
Use of Estimates:
2 unchanged sentences
Material estimates that are particularly susceptible to significant change in the near term include the allowance for credit losses, the valuation of deferred income taxes, and the carrying value of other real estate owned ("OREO").
+Added: Allowance For Credit Losses (ACL)
+Added: We maintain the ACL at a level that we believe to be appropriate to absorb estimated credit losses in the loan portfolios as of the balance sheet date.
+Added: We established our allowance in accordance with guidance provided in Accounting Standard Codification ("ASC") - Financial Instruments - Credit Losses ("ASC 326").
+Added: The allowance for credit losses represents management’s estimate of expected losses inherent in the Company’s lending activities excluding loans accounted for under fair value.
+Added: The allowance for credit losses is maintained through charges to the provision for credit losses in the Consolidated Statements of Income as expected losses are estimated.
+Added: Loans or portions thereof that are determined to be uncollectible are charged against the allowance, and subsequent recoveries, if any, are credited to the allowance.
+Added: The Company performs periodic reviews of its loan and lease portfolios to identify credit risks and to assess the overall collectability of those portfolios.
+Added: The Company's allowance for credit losses includes a general component and an asset-specific component for collateral-dependent loans.
+Added: To determine the asset-specific component of the allowance, the loans are evaluated individually based on the fair value of the underlying collateral.
+Added: The Company generally measures the asset-specific allowance as the difference between the net realizable value of loan collateral and the recorded investment of a loan.
+Added: The general component of the allowance evaluates the impairments of pools of the loan portfolio collectively.
+Added: It incorporates a historical valuation allowance and qualitative allowance.
+Added: The historical valuation utilizes a vintage loss rate approach utilizing a third party software model.
+Added: The vintage loss rate approach creates pools of loans based on the segments defined by management, and consists of commercial and industrial, construction, commercial - owner occupied, commercial - non-owner occupied, residential - 1 to 4 family, residential - 1 to 4 family investment, residential - multifamily, and consumer.
+Added: The loan pools are aggregated by origination year.
+Added: Charge-offs, net of recoveries, are allocated by the year of charge-off to each loan pool.
+Added: An average life is prescribed to a pool of loans that were originated in a particular year.
+Added: The actual charge-offs as a percent of total loans are calculated for each historical year, and projected for future years for each year within the average life time horizon.
+Added: The sum of the actual charge-offs and projected charge-offs are divided by the average amortized origination amount for each respective year.
+Added: Those charge-off percentages are added together to obtain an aggregated vintage loss percentage which is then multiplied by the outstanding loan balances to obtain a reserve requirement.
+Added: The qualitative allowance component is based on general economic conditions and other qualitative risk factors both internal and external to the Company.
+Added: It is generally determined by evaluating, among other things:
+Added: (i) the experience, ability and effectiveness of the Bank's lending management and staff;
+Added: (ii) the effectiveness of the Bank's lending policies, procedures and internal controls;(iii) volume and severity of loan credit quality;
+Added: (iv) nature and volume of portfolio and term of loans (v) the composition and concentrations of credit;
+Added: (vi) the effectiveness of the internal loan review system;
+Added: and (vii) national and local economic trends and conditions, and industry conditions.
+Added: Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis.
+Added: Each component is determined to have either a high, high-moderate, moderate, low-moderate or low degree of risk.
+Added: The results are then input into a "general allocation matrix" to determine an appropriate general valuation allowance.
+Added: The Company has elected to exclude accrued interest receivable from the measurement of the ACL.
+Added: When a loan is placed on non-accrual status, any outstanding accrued interest is generally reversed against interest income.
+Added: The process of determining the level of the allowance for credit losses requires a high degree of estimate and judgment.
+Added: It is reasonably possible that actual outcomes may differ from our estimates.
INVESTMENT SECURITIES
−Removed: The following is a summary of the Company's investments in available for sale and held to maturity securities as of June 30, 2024 and December 31, 2023:
−Removed: As of June 30, 2024 Amortized
+Added: The following is a summary of the Company's investments in available for sale and held to maturity securities as of September 30, 2024 and December 31, 2023.
+Added: None of the securities shown below required an allowance for credit losses.
+Added: As of September 30, 2024 Amortized
losses Fair value
17 unchanged sentences
Total held to maturity $ 9,292 $ 38 $ 1,438 $ 7,892
−Removed: The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of June 30, 2024 are as follows:
+Added: The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of September 30, 2024 are as follows:
(Dollars in thousands)
12 unchanged sentences
Expected maturities may differ from contractual maturities because the issuers of certain debt securities do have the right to call or prepay their obligations without any penalty.
−Removed: The Company did not sell any securities during the three and six months ended June 30, 2024 or 2023.
−Removed: The following tables show the gross unrealized losses and fair value of the Company's available for sale investments for which an allowance for credit losses has not been recorded, which are aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2024 and December 31, 2023:
−Removed: As of June 30, 2024 Less Than 12 Months 12 Months or Greater Total
+Added: The Company did not sell any securities during the three and nine months ended September 30, 2024 or 2023.
+Added: The following tables show the gross unrealized losses and fair value of the Company's available for sale investments for which an allowance for credit losses has not been recorded, which are aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2024 and December 31, 2023:
+Added: As of September 30, 2024 Less Than 12 Months 12 Months or Greater Total
Description of Securities Fair
21 unchanged sentences
Impairment that has not been recorded through an allowance for credit losses is recorded through other comprehensive income, net of applicable taxes.
−Removed: The Company’s unrealized loss for the debt securities classified as available for sale is comprised of 11 securities in the less than 12 months loss position and 16 securities in the 12 months or greater loss position at June 30, 2024.
−Removed: These securities are
−Removed: mortgage-backed securities that had unrealized losses issued or guaranteed by the US government or US government sponsored entities.
+Added: The Company’s unrealized loss for the debt securities classified as available for sale is comprised of 0 securities in the less than 12 months loss position and 14 securities in the 12 months or greater loss position at September 30, 2024.
+Added: These securities are mortgage-backed securities that had unrealized losses issued or guaranteed by the US government or US government sponsored entities.
The unrealized losses associated with those mortgage-backed securities are generally driven by changes in interest rates and are not due to credit losses given the explicit or implicit guarantees provided by the U.S.
−Removed: Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at June 30, 2024.
+Added: Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at September 30, 2024.
The Company classifies the held-to-maturity debt securities into the following major security types:
3 unchanged sentences
Based on the credit ratings of our held-to-maturity securities and our historical experience including no losses, we have determined that an allowance for credit loss on the held-to-maturity portfolio is not required.
−Removed: Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at June 30, 2024.
+Added: Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at September 30, 2024.
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS
−Removed: At June 30, 2024 and December 31, 2023, the Company had $ 1.81 billion and $ 1.79 billion, respectively, in loans receivable outstanding.
−Removed: Outstanding balances include $ 2.1 million and $ 2.7 million at June 30, 2024 and December 31, 2023, respectively, for net deferred loan costs, and unamortized discounts.
−Removed: The portfolio segments of loans receivable at June 30, 2024 and December 31, 2023, consist of the following:
−Removed: June 30, 2024 December 31, 2023
+Added: At September 30, 2024 and December 31, 2023, the Company had $ 1.84 billion and $ 1.79 billion, respectively, in loans receivable outstanding.
+Added: Outstanding balances include $ 2.0 million and $ 2.7 million at September 30, 2024 and December 31, 2023, respectively, for net deferred loan costs, and unamortized discounts.
+Added: The portfolio segments of loans receivable at September 30, 2024 and December 31, 2023, consist of the following:
+Added: September 30, 2024 December 31, 2023
(Dollars in thousands)
11 unchanged sentences
Total loan receivable, net of allowance for credit losses on loans $ 1,807,611 $ 1,755,209
−Removed: An age analysis of past due loans by class at June 30, 2024 and December 31, 2023 is as follows:
−Removed: June 30, 2024 30-59
+Added: An age analysis of past due loans by class at September 30, 2024 and December 31, 2023 is as follows:
+Added: September 30, 2024 30-59
Days Total Past
30 unchanged sentences
The following table provides the amortized cost of loans on nonaccrual status:
−Removed: June 30, 2024
+Added: September 30, 2024
(amounts in thousands) Nonaccrual with no ACL Nonaccrual with ACL Total Nonaccrual Loans Past Due Over 90 Days Still Accruing Total Nonperforming
19 unchanged sentences
Total $ 6,403 $ 835 $ 7,238 $ — $ 7,238
−Removed: Allowance For Credit Losses (ACL)
−Removed: We maintain the ACL at a level that we believe to be appropriate to absorb estimated credit losses in the loan portfolios as of the balance sheet date.
−Removed: We established our allowance in accordance with guidance provided in Accounting Standard Codification ("ASC") - Financial Instruments - Credit Losses ("ASC 326").
−Removed: The allowance for credit losses represents management’s estimate of expected losses inherent in the Company’s lending activities excluding loans accounted for under fair value.
−Removed: The allowance for credit losses is maintained through charges to the provision for credit losses in the Consolidated Statements of Income as expected losses are estimated.
−Removed: Loans or portions thereof that are determined to be uncollectible are charged against the allowance, and subsequent recoveries, if any, are credited to the allowance.
−Removed: The Company performs periodic reviews of its loan and lease portfolios to identify credit risks and to assess the overall collectability of those portfolios.
−Removed: The Company's allowance for credit losses includes a general component and an asset-specific component for collateral-dependent loans.
−Removed: To determine the asset-specific component of the allowance, the loans are evaluated individually based on the fair value of the underlying collateral.
−Removed: The Company generally measures the asset-specific allowance as the difference between the net realizable value of loan collateral and the recorded investment of a loan.
−Removed: The general component of the allowance evaluates the impairments of pools of the loan portfolio collectively.
−Removed: It incorporates a historical valuation allowance and qualitative allowance.
−Removed: The historical valuation utilizes a vintage loss rate approach utilizing a third party software model.
−Removed: The vintage loss rate approach creates pools of loans based on the segments defined by management, and consists of commercial and industrial, construction, commercial - owner occupied, commercial - non-owner occupied, residential - 1 to 4 family, residential - 1 to 4 family investment, residential - multifamily, and consumer.
−Removed: The loan pools are aggregated by origination year.
−Removed: Charge-offs, net of recoveries, are allocated by the year of charge-off to each loan pool.
−Removed: An average life is prescribed to a pool of loans that were originated in a particular year.
−Removed: The actual charge-offs as a percent of total loans are calculated for each historical year, and projected for future years for each year within the average life time horizon.
−Removed: The sum of the actual charge-offs and projected charge-offs are divided by the average amortized origination amount for each respective year.
−Removed: Those charge-off percentages are added together to obtain an aggregated vintage loss percentage which is then multiplied by the outstanding loan balances to obtain a reserve requirement.
−Removed: The qualitative allowance component is based on general economic conditions and other qualitative risk factors both internal and external to the Company.
−Removed: It is generally determined by evaluating, among other things:
−Removed: (i) the experience, ability and effectiveness of the Bank's lending management and staff;
−Removed: (ii) the effectiveness of the Bank's lending policies, procedures and internal controls;(iii) volume and severity of loan credit quality;
−Removed: (iv) nature and volume of portfolio and term of loans (v) the composition and concentrations of credit;
−Removed: (vi) the effectiveness of the internal loan review system;
−Removed: and (vii) national and local economic trends and conditions, and industry conditions.
−Removed: Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis.
−Removed: Each component is determined to have either a high, high-moderate, moderate, low-moderate or low degree of risk.
−Removed: The results are then input into a "general allocation matrix" to determine an appropriate general valuation allowance.
−Removed: The Company has elected to exclude accrued interest receivable from the measurement of the ACL.
−Removed: When a loan is placed on non-accrual status, any outstanding accrued interest is generally reversed against interest income.
−Removed: The process of determining the level of the allowance for credit losses requires a high degree of estimate and judgment.
−Removed: It is reasonably possible that actual outcomes may differ from our estimates.
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures
2 unchanged sentences
The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.
−Removed: At June 30, 2024 and December 31, 2023, the allowance for credit losses on off-balance sheet credit exposures was $ 896.0 thousand and $ 499.0 thousand, respectively, on exposures totaling $ 177.7 million and $ 133.7 million, respectively.
−Removed: The following tables present the information regarding the allowance for credit losses for the three and six months ended June 30, 2024 and 2023:
+Added: At September 30, 2024 and December 31, 2023, the allowance for credit losses on off-balance sheet credit exposures was $ 864.0 thousand and $ 499.0 thousand, respectively, on exposures totaling $ 159.9 million and $ 133.7 million, respectively.
+Added: The provision (recovery) for credit losses on off balance sheet exposures during the three and nine month periods ending September 30, 2024 and 2023 were $( 32.2 ) thousand and $ 365.2 thousand, and zero and $( 200.0 ) thousand, respectively.
+Added: Allowance for Credit Losses (ACL)
+Added: The following tables present the information regarding the allowance for credit losses for the three and nine months ended September 30, 2024 and 2023:
Real Estate Mortgage
1 unchanged sentence
(Dollars in thousands)
−Removed: Three months ended June 30, 2024
−Removed: March 31, 2024 $ 1,060 $ 3,033 $ 1,691 $ 5,386 $ 9,335 $ 9,596 $ 1,747 $ 70 $ 31,918
+Added: Three months ended September 30, 2024
+Added: June 30, 2024 $ 1,068 $ 3,992 $ 1,536 $ 5,414 $ 9,070 $ 9,683 $ 1,603 $ 59 $ 32,425
Charge-offs — — — — — — — — —
1 unchanged sentence
Provisions (benefits) 15 114 668 ( 395 ) 124 ( 760 ) 121 5 ( 108 )
−Removed: Ending Balance at June 30, 2024
+Added: Ending Balance at September 30, 2024
$ 1,084 $ 4,106 $ 2,204 $ 5,019 $ 9,194 $ 8,923 $ 1,724 $ 64 $ 32,318
Allowance for credit losses
−Removed: Six months ended June 30, 2024
+Added: Nine months ended September 30, 2024
December 31, 2023 $ 926 $ 3,347 $ 1,795 $ 7,108 $ 9,061 $ 8,783 $ 1,049 $ 62 $ 32,131
2 unchanged sentences
Provisions (benefits) 132 759 408 ( 2,089 ) 133 140 675 23 181
−Removed: Ending Balance at June 30, 2024
+Added: Ending Balance at September 30, 2024
$ 1,084 $ 4,106 $ 2,204 $ 5,019 $ 9,194 $ 8,923 $ 1,724 $ 64 $ 32,318
−Removed: During the quarter, the increase to the Construction portfolio was due to an increase in the portfolio balance that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.
−Removed: The decrease to the Commercial Owner Occupied, Residential 1 to 4 Family, and the Residential Multifamily portfolios is driven by changes to the qualitative factors related to concentration levels within the portfolio segments.
−Removed: For the year to date, the increase in the Construction and Residential Multifamily portfolios was due to increases in the portfolio balances that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.
−Removed: The increase in the Residential 1 to 4 Family Investment portfolio was due to increase to the qualitative factors related to concentration and problem loan levels within the portfolio segments.
−Removed: The decrease to the Commercial Owner Occupied and Commercial Non-owner Occupied portfolios was due to decreases in the portfolio balances that decreased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.
+Added: During the quarter, the increase to the Commercial Owner Occupied portfolio was due to an increase in the portfolio balance that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.
+Added: The decrease to the Commercial Non-Owner Occupied is due to a decrease in problem loan qualitative factor, partially offset by an increase in the economic condition factor.
+Added: The decrease in the Residential 1 to 4 Family Investment portfolio is due to a downward adjustment of the derived historical loss rate which better reflects the problem loan risk of loss of the portfolio.
+Added: For the year to date, the increase in the Construction, Commercial Owner Occupied, and Residential Multifamily portfolios was due to increases in the portfolio balances that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.
+Added: The decrease to the Commercial Non-Owner Occupied portfolios was due to a decrease in the portfolios internally classified problem loan balance that decreased the problem loan qualitative factor.
Real Estate Mortgage
1 unchanged sentence
(Dollars in thousands)
−Removed: Three months ended June 30, 2023
−Removed: March 31, 2023 $ 738 $ 3,599 $ 1,876 $ 8,076 $ 7,806 $ 8,070 $ 1,238 $ 104 $ 31,507
+Added: Three months ended September 30, 2023
+Added: June 30, 2023 $ 590 $ 3,978 $ 1,869 $ 8,798 $ 7,710 $ 7,740 $ 1,232 $ 98 $ 32,015
Charge-offs — — — — — — — — —
1 unchanged sentence
Provisions (benefits) ( 79 ) ( 833 ) ( 153 ) ( 276 ) 1,164 489 25 ( 37 ) 300
−Removed: Ending Balance at June 30, 2023 $ 590 $ 3,978 $ 1,869 $ 8,798 $ 7,710 $ 7,740 $ 1,232 $ 98 $ 32,015
−Removed: Six months ended June 30, 2023
+Added: Ending Balance at September 30, 2023 $ 515 $ 3,145 $ 1,716 $ 8,522 $ 8,874 $ 8,229 $ 1,257 $ 61 $ 32,319
+Added: Nine months ended September 30, 2023
December 31, 2022 $ 390 $ 2,581 $ 2,298 $ 9,709 $ 6,076 $ 9,381 $ 1,347 $ 63 $ 31,845
4 unchanged sentences
Ending Balance at September 30, 2023 $ 515 $ 3,145 $ 1,716 $ 8,522 $ 8,874 $ 8,229 $ 1,257 $ 61 $ 32,319
−Removed: During the quarter, the increase to provision for the Construction segment was due to an increase in the portfolio balance, while
−Removed: the increase in provision to the Commercial Non-owner Occupied segment was driven by an increase to the specific reserve.
−Removed: credit provision during the quarter to the Commercial and Industrial and Residential 1-4 Family Investment segments were largely
−Removed: driven by declines or slowdowns to growth within the portfolio that lowered the loan exposure and also caused changes to the
−Removed: qualitative factors related to loan volume within the portfolio segments.
−Removed: For the six months ended June 30, 2023, the credit provision to the Construction, Commercial Owner Occupied, Residential 1 to 4
−Removed: Family, and Residential 1 to 4 Family Investment segments was largely driven by declines or slowdowns to growth within the
−Removed: portfolio that lowered loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio
−Removed: segments, partially offset by increases in balances in the Construction and Residential 1 - 4 Family Investment segments.
+Added: During the quarter, the increase to the Residential 1 to 4 Family and Residential 1 to 4 Family Investment portfolio's was due to
+Added: an increase in the portfolio balances as well as an increase in the qualitative factor for the Residential 1 to 4 Family Residential
+Added: portfolio driven by an increase in delinquent loan balances.
+Added: The credit provision during the quarter to the Construction segment
+Added: was mainly due to a decrease in the portfolio balance.
+Added: For the nine months ended September 30, 2023, the increase to the provision for the Residential 1 to 4 Family portfolio was
+Added: mainly driven by an increase in the qualitative factor due to an increase in delinquent loan balances.
+Added: The credit provision to the
+Added: Construction and Residential 1 to 4 Family Investment segments was largely driven by declines or slowdowns to growth within
+Added: the portfolio that lowered loan exposure and also caused changes to the qualitative factors related to loan volume within the
+Added: portfolio segments, partially offset by an increase in the balance of the Residential 1 - 4 Family Investment segment.
+Added: provision for the Commercial Owner Occupied portfolio is attributed to a decrease in the historical vintage reserve rate.
Collateral-Dependent Loans
−Removed: The following table presents the collateral-dependent loans by portfolio segment and collateral type at June 30, 2024:
+Added: The following table presents the collateral-dependent loans by portfolio segment and collateral type at September 30, 2024:
(amounts in thousands) Real Estate Business Assets Other
46 unchanged sentences
Borrowers in this category require constant monitoring, are considered work-out loans and present the potential for future loss to the Bank.
−Removed: The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of June 30, 2024.
+Added: The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of September 30, 2024.
(Dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving Loans at Amortized Cost Basis
−Removed: As of June 30, 2024
+Added: As of September 30, 2024
2024 2023 2022 2021 2020 Prior Total
47 unchanged sentences
Current period gross charge-offs $ — $ — $ — $ — $ — $ 21 $ — $ 21
−Removed: As of June 30, 2024, the Company was in the process of foreclosing on $ 6.4 million in loans, consisting of 12 residential 1 to 4 family loans with a principal balance of $ 1.9 million, two commercial - owner occupied loans with a principal balance of $ 1.1 million, and eight commercial - non-owner occupied loans with a principal balance of $ 3.3 million.
+Added: As of September 30, 2024, the Company was in the process of foreclosing on 21 residential 1 to 4 family loans with a principal balance of $ 4.6 million.
The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of December 31, 2023.
51 unchanged sentences
Modifications to Borrowers Experiencing Financial Difficulty
−Removed: At June 30, 2024, the Company did not make any modifications to borrowers experiencing financial difficulty.
+Added: At September 30, 2024, the Company did not make any modifications to borrowers experiencing financial difficulty.
EARNINGS PER SHARE (“EPS”)
−Removed: The following tables set forth the calculation of basic and diluted EPS for the three and six-month periods ended June 30, 2024 and 2023.
−Removed: Three months ended June 30, Six months ended June 30,
+Added: The following tables set forth the calculation of basic and diluted EPS for the three and nine-month periods ended September 30, 2024 and 2023.
+Added: Three months ended September 30, Nine months ended September 30,
2024 2023 2024 2023
14 unchanged sentences
Diluted earnings per common share $ 0.62 $ 0.08 $ 1.66 $ 1.67
−Removed: As of June 30, 2024 and December 31, 2023, there were 312,630 and 330,536 weighted average option shares outstanding, respectively, that were not included in the computation of diluted EPS because these shares were anti-dilutive.
+Added: As of September 30, 2024 and December 31, 2023, there were 317,130 and 330,536 weighted average option shares outstanding, respectively, that were not included in the computation of diluted EPS because these shares were anti-dilutive.
Fair Value Measurements
26 unchanged sentences
Available for Sale Securities
−Removed: As of June 30, 2024
+Added: As of September 30, 2024
Residential mortgage-backed securities $ — $ 6,041 $ — $ 6,041
3 unchanged sentences
Total $ — $ 7,095 $ — $ 7,095
−Removed: For the six months ended June 30, 2024, there were no transfers between the levels within the fair value hierarchy.
−Removed: There were no level 3 assets or liabilities held during the three and six months ended June 30, 2024 and 2023.
+Added: For the nine months ended September 30, 2024, there were no transfers between the levels within the fair value hierarchy.
+Added: There were no level 3 assets or liabilities held during the three and nine months ended September 30, 2024 and 2023.
Fair Value on a Non-recurring Basis:
2 unchanged sentences
(Dollars in thousands)
−Removed: As of June 30, 2024
+Added: As of September 30, 2024
Collateral-dependent loans $ — $ — $ 1,464 $ 1,464
5 unchanged sentences
Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans.
−Removed: These assets are generally classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.
+Added: If the loan balance exceeds the fair value of the collateral, a specific reserve is applied and these assets are generally classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.
OREO consists of real estate properties that are recorded at fair value based upon current appraised value, or agreements of sale, less estimated disposition costs using level 3 inputs.
5 unchanged sentences
These instruments include cash and cash equivalents, accrued interest receivable, bank owned life insurance, Federal Home Loan Bank of New York ("FHLBNY") restricted stock, demand and other non-maturity deposits and accrued interest payable, and they are considered to be level 1 measurements.
−Removed: The following table summarizes the carrying amounts and fair values for financial instruments that are not carried at fair value at June 30, 2024 and December 31, 2023:
−Removed: June 30, 2024 Carrying Amount Fair Value
+Added: The following table summarizes the carrying amounts and fair values for financial instruments that are not carried at fair value at September 30, 2024 and December 31, 2023:
+Added: September 30, 2024 Carrying Amount Fair Value
Total Level 1 Level 2 Level 3
18 unchanged sentences
These financial instruments include commitments to extend credit and standby letters of credit.
−Removed: These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheet.
−Removed: The contract or notional amounts of these instruments reflect the extent of the Company’s involvement in these particular
−Removed: classes of financial instruments.
+Added: These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance
+Added: The contract or notional amounts of these instruments reflect the extent of the Company’s involvement in these particular classes of financial instruments.
The Company’s exposure to the maximum possible credit risk in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments.
7 unchanged sentences
Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.
−Removed: Commitments to fund fixed-rate loans were immaterial at June 30, 2024.
+Added: Commitments to fund fixed-rate loans were immaterial at September 30, 2024.
Variable-rate commitments are generally issued for less than one year and carry market rates of interest.
Such instruments are not likely to be affected by annual rate caps triggered by rising interest rates.
−Removed: As of June 30, 2024 and December 31, 2023, unused commitments to extend credit amounted to approximately $ 114.8 million and $ 93.8 million, respectively.
−Removed: At June 30, 2024 and December 31, 2023, the allowance for credit losses on off-balance sheet credit exposures was $ 896.0 thousand and $ 499 thousand, respectively.
+Added: As of September 30, 2024 and December 31, 2023, unused commitments to extend credit amounted to approximately $ 121.5 million and $ 93.8 million, respectively.
+Added: At September 30, 2024 and December 31, 2023, the allowance for credit losses on off-balance sheet credit exposures was $ 864.0 thousand and $ 499 thousand, respectively, an increase of $ 365.0 thousand, mainly due to the increase in the unused commitment balance.
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party.
The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.
−Removed: As of June 30, 2024 and December 31, 2023, standby letters of credit with customers were $ 0.6 million and $ 1.5 million, respectively.
−Removed: On June 26, 2024, the Bank entered into an agreement with the FHLBNY for a Municipal Letter of Credit ("MLOC") of $ 60.0 million.
−Removed: The MLOC is used to pledge against public deposits and the MLOC expires on September 25, 2024.
−Removed: There were no outstanding borrowings on the letters of credit as of June 30, 2024.
+Added: As of September 30, 2024 and December 31, 2023, standby letters of credit with customers were $ 0.6 million and $ 1.5 million, respectively.
+Added: On September 26, 2024, the Bank entered into an agreement with the FHLBNY for a Municipal Letter of Credit ("MLOC") of $ 50.0 million.
+Added: The MLOC is used to pledge against public deposits and the MLOC expires on December 26, 2024.
+Added: There were no outstanding borrowings on the letters of credit as of September 30, 2024.
The Company also has entered into an employment contract with the President of the Company, which provides for continued payment of certain employment salary and benefits prior to the expiration date of the agreement and in the event of a change in control, as defined.
10 unchanged sentences
Any change in the Federal government’s enforcement position, could cause us to immediately cease providing banking services to the cannabis industry.
−Removed: At June 30, 2024 and December 31, 2023, deposit balances from cannabis customers were approximately $ 142.5 million and $ 96.7 million, or 9.5 % and 6.2 % of total deposits, respectively, with three customers accounting for 66.1 % and 60.6 % of the total at June 30, 2024 and December 31, 2023.
−Removed: At June 30, 2024 and December 31, 2023, there were cannabis-related loans in the amounts of $ 29.5 million and $ 27.1 million, respectively.
+Added: At September 30, 2024 and December 31, 2023, deposit balances from cannabis customers were approximately $ 116.5 million and $ 96.7 million, or 7.5 % and 6.2 % of total deposits, respectively, with three customers accounting for 53.6 % and 60.6 % of the total at September 30, 2024 and December 31, 2023.
+Added: At September 30, 2024 and December 31, 2023, there were cannabis-related loans in the amounts of $ 38.7 million and $ 27.1 million, respectively.
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.