What changed in Princeton Bancorp, Inc.'s 10-K — 2024 vs 2025
vs
Paragraph-level year-over-year comparison of Princeton Bancorp, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+61 added−71 removedSource: 10-K (2026-03-13) vs 10-K (2025-03-14)
Top changes in Princeton Bancorp, Inc.'s 2025 10-K
61 paragraphs added · 71 removed · 52 edited across 1 sections
- Item 7. Management's Discussion & Analysis+61 / −71 · 52 edited
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
52 edited+9 added−19 removed37 unchanged
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
52 edited+9 added−19 removed37 unchanged
2024 filing
2025 filing
Biggest changeTwelve Months Ended December 31, 2024 2023 Change 2024 vs 2023 Average Balances Income/ Expense Yield Rates Average Balances Income/ Expense Yield Rates Average Balances Yield Rates (Dollars in thousands) Interest-earning assets: Loans receivable $ 1,663,013 $ 108,586 6.53 % $ 1,449,504 $ 89,278 6.16 % $ 213,509 0.37 % Securities Taxable available-for-sale 109,145 4,928 4.51 % 43,476 1,339 3.08 % 65,669 1.43 % Tax exempt available-for-sale 40,239 1,142 2.84 % 40,264 1,138 2.83 % (25 ) 0.01 % Held-to-maturity 169 9 5.27 % 197 10 5.28 % (28 ) -0.01 % Federal funds sold 136,281 7,188 5.27 % 109,441 5,858 5.35 % 26,840 -0.08 % Other interest earning-assets 19,337 1,093 5.65 % 10,064 557 5.53 % 9,273 0.12 % Total interest-earning assets 1,968,184 $ 122,946 6.25 % 1,652,946 $ 98,180 5.94 % 315,239 0.31 % Other non-earnings assets 151,600 122,321 29,369 Total assets $ 2,119,784 $ 1,775,267 $ 344,608 Interest-bearing liabilities Demand $ 258,462 $ 4,941 1.91 % $ 250,312 $ 3,654 1.46 % $ 8,150 0.45 % Savings 157,538 3,974 2.52 % 159,175 2,742 1.72 % (1,637 ) 0.80 % Money markets 421,934 15,971 3.79 % 311,478 9,565 3.07 % 110,456 0.72 % Certificates of deposit 724,060 31,528 4.35 % 538,343 17,085 3.17 % 185,717 1.18 % Total deposit 1,561,994 56,414 3.61 % 1,259,308 33,046 2.62 % 302,686 0.99 % Borrowings — — 0.00 % 2,343 118 5.01 % (2,343 ) -5.01 % Total interest-bearing liabilities 1,561,994 $ 56,414 3.61 % 1,261,651 $ 33,164 2.63 % 300,343 0.98 % Non-interest-bearing deposits 264,418 248,233 16,185 Other liabilities 43,955 36,856 7,099 Total liabilities 1,870,367 1,546,740 323,627 Stockholders’ equity 249,417 228,527 20,890 Total liabilities and stockholder’s equity $ 2,119,784 $ 1,775,267 $ 344,517 Net interest-earnings assets $ 406,189 $ 391,295 $ 14,894 Net interest income; interest rate spread 2.64 % 3.31 % -0.67 % Net interest margin $ 66,532 3.38 % $ 65,016 3.93 % $ 1,516 -0.55 % 51 Table of Contents Rate/Volume Analysis The following table reflects the sensitivity of our interest income and interest expense to changes in volume and in yields on interest-earning assets and costs of interest-bearing liabilities during the periods indicated.
Biggest changeTwelve Months Ended December 31, 2025 2024 Change 2025 vs 2024 Average Balances Income/ Expense Yield Rates Average Balances Income/ Expense Yield Rates Average Balances Yield Rates (Dollars in thousands) Interest-earning assets: Loans receivable $ 1,829,038 $ 117,768 6.44 % $ 1,663,013 $ 108,586 6.53 % $ 166,025 (0.09 )% Securities Taxable available-for-sale 183,722 8,925 4.86 % 109,145 4,928 4.51 % 74,577 0.35 % Tax exempt available-for-sale 39,562 1,117 2.82 % 40,239 1,142 2.84 % (677 ) (0.02 )% Held-to-maturity 157 8 5.33 % 169 9 5.27 % (12 ) 0.06 % Due from Federal Reserve Bank 47,855 1,983 4.14 % 136,281 7,188 5.27 % (88,426 ) (1.13 )% Other interest earning-assets 16,068 751 4.68 % 19,337 1,093 5.65 % (3,269 ) (0.97 )% Total interest-earning assets 2,116,402 $ 130,552 6.17 % 1,968,184 $ 122,946 6.25 % 148,218 (0.08 )% Other non-earnings assets 168,805 151,600 17,205 Total assets $ 2,285,207 $ 2,119,784 $ 165,423 Interest-bearing liabilities Demand $ 313,269 $ 6,298 2.01 % $ 258,462 $ 4,941 1.91 % $ 54,807 0.10 % Savings 169,486 3,857 2.28 % 157,538 3,974 2.52 % 11,948 (0.24 )% Money markets 469,061 14,639 3.12 % 421,934 15,971 3.79 % 47,127 (0.67 )% Certificates of deposit 735,427 29,884 4.06 % 724,060 31,528 4.35 % 11,367 (0.29 )% Total deposit 1,687,243 54,678 3.24 % 1,561,994 56,414 3.61 % 125,249 (0.37 )% Borrowings 1,262 58 4.59 % — — — 1,262 4.59 % Total interest-bearing liabilities 1,688,505 $ 54,736 3.24 % 1,561,994 $ 56,414 3.61 % 126,511 (0.37 )% Non-interest-bearing deposits 291,084 264,418 26,666 Other liabilities 40,619 43,955 (3,336 ) Total liabilities 2,020,208 1,870,367 149,841 Stockholders’ equity 264,999 249,417 15,582 Total liabilities and stockholder’s equity $ 2,285,207 $ 2,119,784 $ 165,423 Net interest-earnings assets $ 427,897 $ 406,189 $ 21,708 Net interest income; interest rate spread 2.93 % 2.64 % 0.29 % Net interest margin $ 75,816 3.58 % $ 66,532 3.38 % $ — 0.20 % 47 Rate/Volume Analysis The following table reflects the sensitivity of our interest income and interest expense to changes in volume and in yields on interest-earning assets and costs of interest-bearing liabilities during the periods indicated.
We manage our balance sheet based on a number of interrelated criteria, such as changes in interest rates, fluctuations in certain asset and liability categories whose changes are not totally controlled by us, swings in deposit account balances driven by depositors’ needs, prepayments and issuer call options exercised on securities available for sale, early payoffs on loans, investment opportunities presented by market conditions, lending originations, capital provided by earnings, and active management of our overall liquidity positions.
We manage our balance sheet based on a number of interrelated criteria, such as changes in interest rates, fluctuations in certain asset and liability categories whose changes are not totally controlled by us, changes in deposit account balances driven by depositors’ needs, prepayments and issuer call options exercised on securities available for sale, early payoffs on loans, investment opportunities presented by market conditions, lending originations, capital provided by earnings, and active management of our overall liquidity positions.
Finally, the ability of many borrowers to service their adjustable-rate loans may decrease in the event of an interest rate increase. Net Portfolio Value Analysis. Our interest rate sensitivity also is monitored by management through the use of a model which generates estimates of the changes in our net portfolio value (“NPV”) over a range of interest rate scenarios.
Finally, the ability of many borrowers to service their adjustable-rate loans may decrease in the event of an interest rate increase. 51 Net Portfolio Value Analysis. Our interest rate sensitivity also is monitored by management through the use of a model which generates estimates of the changes in our net portfolio value (“NPV”) over a range of interest rate scenarios.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Our Management’s Discussion and Analysis of Financial Condition and Results of Operations is presented in sections as follows: • Overview and Strategy • Comparison of Financial Condition at December 31, 2024 and December 31, 2023 • Comparison of Operating Results for the Years Ended December 31, 2024 and 2023 • Rate/Volume Analysis • Liquidity, Commitments and Capital Resources • Off-Balance Sheet Arrangements • Impact of Inflation • Exposure to Changes in Interest Rates • Critical Accounting Policies and Estimates • Recently Issued Accounting Standards Overview and Strategy We remain focused on establishing and retaining customer relationships by offering a broad range of traditional financial services and products, competitively priced and delivered in a responsive manner to small businesses, to professionals and individuals in our market area.
Mana gement’s Discussion and Analysis of Financial Condition and Results of Operations Our Management’s Discussion and Analysis of Financial Condition and Results of Operations is presented in sections as follows: • Overview and Strategy • Comparison of Financial Condition at December 31, 2025 and December 31, 2024 • Comparison of Operating Results for the Years Ended December 31, 2025 and 2024 • Rate/Volume Analysis • Liquidity, Commitments and Capital Resources • Off-Balance Sheet Arrangements • Impact of Inflation • Exposure to Changes in Interest Rates • Critical Accounting Policies and Estimates • Recently Issued Accounting Standards Overview and Strategy We remain focused on establishing and retaining customer relationships by offering a broad range of traditional financial services and products, competitively priced and delivered in a responsive manner to small businesses, to professionals and individuals in our market area.
(2) Includes interest-bearing bank balances, FHLB Stock and Federal Funds Sold (3) Interest-rate sensitivity gap represents the difference between total interest-earning assets and total interest-bearing liabilities. 55 Table of Contents Certain shortcomings are inherent in the method of analysis presented in the foregoing table.
(2) Includes interest-bearing bank balances, FHLB Stock and Federal Funds Sold (3) Interest-rate sensitivity gap represents the difference between total interest-earning assets and total interest-bearing liabilities. Certain shortcomings are inherent in the method of analysis presented in the foregoing table.
The table sets forth an approximation of the projected repricing of assets and liabilities at December 31, 2024, on the basis of contractual maturities, anticipated prepayments, and scheduled rate adjustments period and subsequent selected time intervals.
The table sets forth an approximation of the projected repricing of assets and liabilities at December 31, 2025, on the basis of contractual maturities, anticipated prepayments, and scheduled rate adjustments period and subsequent selected time intervals.
The management of these dynamic and interrelated elements of our balance sheet results in fluctuations in balance sheet items throughout the year. Comparison of Operating Results for the Years Ended December 31, 2024, and 2023 General.
The management of these dynamic and interrelated elements of our balance sheet results in fluctuations in balance sheet items throughout the year. Comparison of Operating Results for the Years Ended December 31, 2025, and December 31, 2024 General.
Our exposure to credit loss in the event of non-performance by the counterparty to the financial instrument for commitments to extend credit is 53 Table of Contents represented by the contractual notional amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance-sheet instruments.
Our exposure to credit loss in the event of non-performance by the counterparty to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance-sheet instruments.
The following table sets forth our NPV as of December 31, 2024 and reflects the changes to NPV as a result of immediate and sustained changes in interest rates as indicated.
The following table sets forth our NPV as of December 31, 2025 and reflects the changes to NPV as a result of immediate and sustained changes in interest rates as indicated.
Conversely, during a period of falling interest rates, a negative gap would tend to result in an increase in net interest income while a positive gap would tend to affect adversely net interest income. 54 Table of Contents The table on the next page sets forth the amounts of our interest-earning assets and interest-bearing liabilities outstanding at December 31, 2024, which we expect, based upon certain assumptions, to reprice or mature in each of the future time periods shown.
Conversely, during a period of falling interest rates, a negative gap would tend to result in an increase in net interest income while a positive gap would tend to affect adversely net interest income. 50 The table on the next page sets forth the amounts of our interest-earning assets and interest-bearing liabilities outstanding at December 31, 2025, which we expect, based upon certain assumptions, to reprice or mature in each of the future time periods shown.
We continue to capitalize upon the personal contacts and relationships of our organizers, directors, stockholders and officers to establish and grow our customer base. Comparison of Financial Condition at December 31, 2024 and December 31, 2023 General.
We continue to capitalize upon the personal contacts and relationships of our organizers, directors, stockholders and officers to establish and grow our customer base. 43 Comparison of Financial Condition at December 31, 2025 and December 31, 2024 General.
As of December 31, 2024, we met the capital requirements to be considered “well capitalized.” See Note 17 – “Regulatory Matters” in the Notes to Consolidated Financial Statements included within this Form 10-K for more information regarding our capital resources.
As of December 31, 2025, we met the capital requirements to be considered “well capitalized.” See Note 16 – “Regulatory Matters” in the Notes to Consolidated Financial Statements included within this Form 10-K for more information regarding our capital resources.
As a community bank, we seek to provide superior customer service that is highly personalized, efficient and responsive to local needs. To better serve our customers, we endeavor to provide state-of-the-art delivery systems with ATMs, current operating software, timely reporting, online bill pay and other similar up-to-date products and services.
As a community bank, we seek to provide superior customer service that is highly personalized, efficient and responsive to local needs. To better serve our customers, we endeavor to provide advanced delivery systems with ATMs, current operating software, timely reporting, online bill pay and other similar up-to-date products and services.
We consider these accounting estimates to be critical accounting policies. The judgments and assumptions we use are based on historical experience and other factors, which we believe to be reasonable under 56 Table of Contents the circumstances.
We consider these accounting estimates to be critical accounting policies. The judgments and assumptions we use are based on historical experience and other factors, which we believe to be reasonable under the circumstances.
Non-interest expense. For the year ended December 31, 2024, non-interest expense was $56.8 million, compared to $48.7 million for 2023.
For the year ended December 31, 2025, non-interest expense was $53.9 million, compared to $56.8 million for 2024.
The following factors, among others, could cause the Company’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the extent of the adverse impact of any current or future pandemics or other natural disasters on our customers, prospects and business, including related supply chain shortage of goods; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and the Bank conduct operations; the imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; market volatility; the value of the Bank’s products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors’ products and services; the willingness of customers to substitute competitors’ products and services for the Bank’s products and services; credit risk associated with the Bank’s lending activities; risks relating to the real estate market and the Bank’s real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Company and the Bank; the timing and nature of the regulatory response to any applications filed by the Company and the Bank; technological changes; acquisitions and difficulties and delays in integrating the businesses of the acquired company, including CFC, and the Company fully realizing cost savings and other benefits of such acquisitions; changes in consumer spending and saving habits; those risks described in Item 1.
Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the global impact of foreign military conflicts; the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and Bank conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations; market volatility; the value of the Bank’s products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors’ products and services; the willingness of customers to substitute competitors’ products and services for the Bank’s products and services; credit risk associated with the Bank’s lending activities; risks relating to the real estate market and the Bank’s real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Company and the Bank; and the timing and nature of the regulatory response to any applications filed by the Company and the Bank; technological changes; other acquisitions; changes in consumer spending and saving habits; those risks described in Item 1.
Total interest and dividend income. Total interest and dividend income increased $24.8 million, or 25.2%, to $122.9 million for the year ended December 31, 2024, compared to $98.2 million for the prior year.
Total interest and dividend income increased $7.6 million, or 6.2%, to $130.6 million for the year ended December 31, 2025, compared to $122.9 million for the prior year.
The improvement in interest income resulted from an increase in the yield on earning assets of 31 basis points to 6.25% and an increase in average interest-earning assets of $315.2 million for the twelve-month period ended December 31, 2024.
The improvement in interest income resulted from an increase in average interest-earning assets of $148.2 million, partially offset by a decrease in the yield on earning assets of 8 basis points to 6.17% for the twelve-month period ended December 31, 2025.
Cautionary Note Regarding Forward-Looking Statements The Company may from time to time make written or oral “forward-looking statements,” including statements contained in the Company’s filings with the SEC, in its reports to stockholders and in other communications by the Company (including this report), which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Exchange Act. 57 Table of Contents These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control).
Cautionary Note Regarding Forward-Looking Statements The Company may from time to time make written or oral “forward-looking statements,” including statements contained in the Company’s filings with the SEC, in its reports to stockholders and in other communications by the Company (including this report), which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Exchange Act.
For the year ended December 31, 2024, the Company recorded net income of $10.2 million, or $1.55 per diluted common share, compared to $25.8 million, or $4.03 per diluted common share, for the same period in 2023.
For the year ended December 31, 2025, the Company recorded net income of $18.6 million, or $2.71 per diluted common share, compared to $10.2 million, or $1.55 per diluted common share, for 2024.
The CFC acquisition caused a significant portion of such increases. Income tax expense. For the year ended December 31, 2024, income tax expense was $2.6 million resulting in an effective tax rate of 20.1% compared to income tax expense of $4.6 million and an effective tax rate of 15.1% for the year ended December 31, 2023.
For the year ended December 31, 2025, income tax expense was $5.1 million resulting in an effective tax rate of 21.4% compared to income tax expense of $2.6 million and an effective tax rate of 20.1% for the year ended December 31, 2024.
Borrowings The Company had no outstanding borrowings at December 31, 2024 or December 31, 2023. 48 Table of Contents Stockholders’ equity Total stockholders’ equity at December 31, 2024, increased $21.8 million or 9.09% when compared to December 31, 2023.
Borrowings The Company had no outstanding borrowings at December 31, 2025 or December 31, 2024. Stockholders’ equity Total stockholders’ equity at December 31, 2025, increased $8.7 million or 3.31% when compared to December 31, 2024.
Interest income and fees on loans increased $19.3 million, or 21.6%, to $108.6 million for the year ended December 31, 2024, compared to $89.3 million for the prior year.
Interest income and fees on loans increased $9.2 million, or 8.5%, to $117.8 million for the year ended December 31, 2025, compared to $108.6 million for the prior year.
The increase of $8.0 million was primarily attributed to increases in salaries and employee benefits of $2.7 million, occupancy and equipment of $1.2 million, professional fees of $515 thousand, data processing and communications of $352 thousand, federal deposit insurance of $254 thousand and merger-related expenses of $2.2 million during 2024 over the same period in 2023.
The decrease of $2.8 million was primarily attributed to acquisition related expenses of $7.8 million recorded in 2024, partially offset by increases in salaries and employee benefits of $1.7 million, data processing and communications of $1.1 million, professional fees of $763 thousand, occupancy and equipment of $527 thousand, and federal deposit insurance of $448 thousand during 2025 over the same period in 2024. 46 Income tax expense.
We expect that a financial strategy that utilizes variable rates and matching assets and liabilities will enable us to increase our net interest margin, while managing interest rate risk.
We expect that a financial strategy that utilizes variable rates and matching assets and liabilities will enable us to increase our net interest margin, while managing interest rate risk. We also seek to generate fee income from various sources, subject to our desire to maintain competitive pricing within our market area.
Additionally, we are a shareholder of Atlantic Community Bancshares, Inc., and as such, as of December 31, 2024, we had available capacity with its subsidiary, Atlantic Community Bankers Bank of $10.0 million to provide short-term liquidity generally for a period of not more than fourteen days. Contractual Obligations. We have non-cancelable operating leases for branch offices and our operations center.
At December 31, 2025, we had remaining available capacity with FHLB-NY, subject to certain collateral restrictions, of $548.4 million. 48 Additionally, we are a shareholder of Atlantic Community Bancshares, Inc., and as such, as of December 31, 2025, we had available capacity with its subsidiary, Atlantic Community Bankers Bank of $10.0 million to provide short-term liquidity generally for a period of not more than fourteen days.
The increase was attributable to both a $213.5 million increase in the average balance and a 37 basis point increase in the year-over-year average yield on loans to 6.53%, due to rising interest rates over the period. Interest income on securities increased approximately $3.6 million, or 144.43%, for the year ended December 31, 2024, compared to the prior year.
The increase was attributable to a $166.0 million increase in the average balance, partially offset by a 9 basis point decrease in the year-over-year average yield on loans to 6.44%, due to declining interest rates over the period. Interest income on securities increased approximately $4.0 million, or 65.3%, for the year ended December 31, 2025, compared to the prior year.
Provision for credit losses. The provision for credit losses for the twelve months ended December 31, 2024, was $5.1 million compared with a provision of $3.1 million for the 2023 period.
Interest expense on borrowings was not significant for either period presented. Provision for credit losses. The provision for credit losses for the twelve months ended December 31, 2025, was $6.7 million compared with a provision of $5.1 million for the 2024 period.
LTV estimates are less than 70% for $1.27 billion or 92.1% of the CRE portfolio and less than 80% for $1.37 billion or 99.3% of the CRE portfolio. 47 Table of Contents The following table presents the commercial real estate portfolio by property type along with the weighted average loan to value for the periods presented (dollars in thousands): December 31, 2024 December 31, 2023 Commercial Real Estate Balance % of portfolio Weighted Average LTV Balance % of portfolio Weighted Average LTV Multi Family 533,287 38.6 % 53.6 % 403,779 35.3 % 55.7 % Owner Occupied 407,798 29.4 % 36.3 % 347,734 30.4 % 33.0 % Land 25,241 1.8 % 73.9 % 30,280 2.6 % 79.6 % Non Owner Occupied Office Building 104,388 7.5 % 43.5 % 91,968 8.0 % 42.9 % Retail 100,771 7.3 % 42.5 % 67,862 5.9 % 40.7 % Industrial/Warehousing 73,417 5.3 % 44.9 % 69,917 6.1 % 46.0 % Mixed Use 48,076 3.5 % 43.7 % 48,684 4.3 % 42.9 % Restaurants 22,650 1.6 % 39.3 % 15,361 1.3 % 33.3 % Healthcare 10,268 0.7 % 53.3 % 11,448 1.0 % 48.7 % Other 59,189 4.3 % 45.6 % 55,830 4.9 % 38.7 % Total non owner occupied 418,759 30.2 % 361,070 31.6 % Total Commercial Real Estate 1,385,085 100.0 % 1,142,863 100.0 % The following table presents the geographic markets of the commercial real estate portfolio for the periods presented (dollars in thousands): December 31, 2024 December 31, 2023 Balance % of portfolio Balance % of portfolio Geographical Market New York 639,994 46.1 % 533,991 46.7 % New Jersey 540,896 39.1 % 408,368 35.7 % Pennsylvania 184,084 13.3 % 172,848 15.1 % Other 20,111 1.5 % 27,657 2.5 % 1,385,085 100.00 % 1,142,864 100.00 % At December 31, 2024, non-performing assets totaled $27.1 million, an increase of $20.4 million when compared to the amount at December 31, 2023.
The following table presents the commercial real estate portfolio by property type along with the weighted average loan to value for the periods presented (dollars in thousands): December 31, 2025 December 31, 2024 Commercial Real Estate Balance % of portfolio Weighted Average LTV Balance % of portfolio Weighted Average LTV Multi Family 505,267 37.6 % 52.5 % 533,287 38.6 % 53.6 % Owner Occupied 394,281 29.3 % 34.9 % 407,798 29.4 % 36.3 % Land 27,514 2.1 % 70.7 % 25,241 1.8 % 73.9 % Non Owner Occupied Office Building 9,829 0.7 % 50.9 % 104,388 7.5 % 43.5 % Retail 80,244 6.0 % 44.5 % 100,771 7.3 % 42.5 % Industrial/Warehousing 44,198 3.3 % 41.4 % 73,417 5.3 % 44.9 % Mixed Use 60,520 4.5 % 43.0 % 48,076 3.5 % 43.7 % Restaurants 20,284 1.5 % 38.0 % 22,650 1.6 % 39.3 % Healthcare 108,367 8.1 % 41.0 % 10,268 0.7 % 53.3 % Other 93,027 6.9 % 42.4 % 59,189 4.3 % 45.6 % Total non owner occupied 416,469 31.0 % 418,759 30.2 % Total Commercial Real Estate 1,343,531 100.0 % 1,385,085 100.0 % 44 The following table presents the geographic markets of the commercial real estate portfolio for the periods presented (dollars in thousands): December 31, 2025 December 31, 2024 Balance % of portfolio Balance % of portfolio Geographical Market New York 629,314 46.8 % 639,994 46.1 % New Jersey 504,206 37.5 % 540,896 39.1 % Pennsylvania 186,268 13.9 % 184,084 13.3 % Other 23,743 1.8 % 20,111 1.5 % 1,343,531 100.00 % 1,385,085 100.00 % At December 31, 2025, non-performing assets totaled $16.6 million, a decrease of $10.6 million when compared to the amount at December 31, 2024.
Total interest expense increased $23.3 million, or 70.1%, for the year ended December 31, 2024 compared to the prior year. This increase was the result of a 99 basis point increase in the cost of interest-bearing deposits and an increase of $302.7 million in average interest-bearing deposits. Interest expense on borrowings was not significant for either period presented.
Interest expense. Total interest expense decreased $1.7 million, or 3.0%, for the year ended December 31, 2025 compared to the prior year. This decrease was the result of a 37 basis point decrease in the cost of interest-bearing deposits and partially offset by an increase of $125.2 million in average interest-bearing deposits.
The ratio of equity to total assets at December 31, 2024 and at December 31, 2023 was 11.2% and 12.5%, respectively. The current period ratio decrease was primarily due to the CFC acquisition.
The ratio of equity to total assets at December 31, 2025, and at December 31, 2024, was 11.9% and 11.2%, respectively.
Recently Issued Accounting Standards See Note 1- “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements contained in this Annual Report on Form 10-K for a discussion of recently issued accounting standards.
All, or part, of the principal balance of loans receivable are charged off to the allowance for credit losses when it is determined that the repayment of all, or part, of the principal balance is highly unlikely. 52 Recently Issued Accounting Standards See Note 1- “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements contained in this Annual Report on Form 10-K for a discussion of recently issued accounting standards.
The increase in the Company’s net loans consisted of increases of $242.2 million in commercial real estate loans, $41.9 million in commercial and industrial loans, $30.0 million in residential mortgages, and $10.1 in home equity and consumer loans, all partially offset by a decrease of $53.0 million in construction loans.
The decrease in net loans consisted of decreases of $47.7 million in construction loans, $41.6 million in commercial real estate loans, and $16.3 million in commercial and industrial loans, partially offset by increases of $95.8 million in residential mortgages, and $7.2 million in home equity and consumer loans.
The following table is a schedule of future payments under operating leases with initial terms longer than 12 months at December 31, 2024: Amount Years Ended December 31 (in thousands) 2025 $ 3,722 2026 3,498 2027 3,208 2028 3,093 2029 2,467 Thereafter 14,541 Total $ 30,529 The following table summarizes our contractual cash obligations relating to certificates of deposits: Amount Years Ended December 31 (in thousands) 2025 $ 727,528 2026 33,942 2027 4,581 2028 1,112 2029 and thereafter 2,508 Total $ 769,671 Capital Resources.
The following table is a schedule of future payments under operating leases with initial terms longer than 12 months at December 31, 2025: Amount Years Ended December 31 (in thousands) 2026 $ 3,730 2027 3,463 2028 3,354 2029 2,733 2030 2,598 Thereafter 12,113 Total $ 27,991 The following table summarizes our contractual cash obligations relating to certificates of deposits: Amount Years Ended December 31 (in thousands) 2026 $ 687,049 2027 31,709 2028 2,436 2029 2,807 2030 and thereafter 706 Total $ 724,707 Capital Resources.
We had the following off-balance sheet financial instruments whose contract amounts represent credit risk at December 31: 2024 2023 (In thousands) Performance and standby letters of credit $ 700 $ 1,010 Undisbursed construction loans-in-process 62,007 89,258 Commitments to fund loans 51,075 38,863 Unfunded commitments under lines of credit 19,659 4,697 Total $ 133,441 $ 133,828 For additional information regarding our outstanding lending commitments at December 31, 2024, see Note 9 – “Commitments and Contingencies” in the Notes to Consolidated Financial Statements contained in this Form 10-K.
Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. 49 We had the following off-balance sheet financial instruments whose contract amounts represent credit risk at December 31, 2025: 2025 2024 (In thousands) Performance and standby letters of credit $ 590 $ 700 Undisbursed construction loans-in-process 100,639 61,223 Commitments to fund loans 69,619 51,883 Unfunded commitments under lines of credit 19,500 18,801 Total $ 190,348 $ 132,607 For additional information regarding our outstanding lending commitments at December 31, 2025, see Note 9 – “Commitments and Contingencies” in the Notes to Consolidated Financial Statements contained in this Form 10-K.
The increase was attributable to both a $65.6 million increase in the average balance and a 110 basis point increase in the year-over-year average yield on investments to 4.06% Other interest and dividends increased $1.9 million, or 29.1%, to $8.3 million for the year ended December 31, 2024, compared to $6.4 million for the prior year due to an increase of $26.9 million in the average balances of federal funds sold, partially offset by an 8 basis point decrease in the yield on fed funds sold. 49 Table of Contents Interest expense.
The increase was attributable to both a $73.9 million increase in the average balance and a 44 basis point increase in the year-over-year average yield on investments to 4.50% Other interest and dividends decreased $5.5 million, or 67%, to $2.7 million for the year ended December 31, 2025, compared to $8.3 million for the prior year due to a decrease of $88.2 million in the average balances Due from Federal Reserve Bank, and a 113 basis point decrease in the yield on respective funds.
We also seek to generate fee income from various sources, subject to our desire to maintain competitive pricing within our market area. 46 Table of Contents Our recognition of, and commitment to, the needs of the local community, combined with highly personalized and responsive customer service, differentiates us from our competition.
Our recognition of, and commitment to, the needs of the local community, combined with highly personalized and responsive customer service, differentiates us from our competition.
Net loan fees of $4.1 million and $2.8 million were recorded for the twelve months ended December 31, 2024 and 2023, respectively. Nonaccrual loans are included in the average balance of loans receivable, net for all periods presented. No tax-equivalent adjustments have been made as they were deemed insignificant.
The average yields and costs of funds shown are derived by dividing income or expense by the daily average balance of assets or liabilities, respectively, for the periods presented. Nonaccrual loans are included in the average balance of loans receivable, net for all periods presented. No tax-equivalent adjustments have been made as they were deemed insignificant.
The increase was primarily due to the $21.6 million increase in paid-in capital which is primarily associated with the issuance of $20.0 million of common stock related to the acquisition of CFC, and an increase in retained earnings of $2.5 million, which consisted of $10.2 million in net income partially offset by $7.7 million of cash dividends recorded during the period, which increase was partially offset by an increase in accumulated other comprehensive loss of $1.4 million.
The increase was primarily due to an increase in retained earnings of $9.8 million (which consisted of $18.6 million in net income, partially offset by $8.6 million of dividends recorded during the period), an increase in paid-in capital of $3.0 million primarily due to the exercise of stock options, and a decrease in accumulated other comprehensive loss of $3.7 million due to reductions in market interest rates and in investment securities, partially offset by a $7.9 million increase in treasury stock due to our stock repurchase program.
This decrease was due to the income taxes on the $9.7 million bargain purchase gain from the Noah Bank acquisition, recorded in the year ended December 31, 2023, and an increase in 2024 merger related expenses of $2.2 million when comparing the years ended December 31, 2024 and 2023. 50 Table of Contents Average Balance Sheets.
This increase in income taxes was due to the decrease in merger related expenses of $7.8 million when comparing the years ended December 31, 2025 and 2024. Average Balance Sheets. The following table sets forth average balance sheets, yields and costs, and certain other information for the years indicated.
We review cash flow projections regularly and update them in order to maintain liquid assets at levels believed to meet the requirements of normal operations, including loan commitments and potential deposit outflows from maturing certificates of deposit and savings withdrawals. 52 Table of Contents While deposits are our primary source of funds, when needed we are also able to generate cash through borrowings from the FHLB-NY.
ALCO reports interest rate sensitivity, liquidity, capital and investment-related matters on a quarterly basis to the Company's board of directors. We review cash flow projections regularly and update them in order to maintain liquid assets at levels believed to meet the requirements of normal operations, including loan commitments and potential deposit outflows from maturing certificates of deposit and savings withdrawals.
Cash and cash equivalents Cash and cash equivalents decreased $33.2 million, or 22.06%, to $117.3 million at December 31, 2024 compared to December 31, 2023. Investment securities Total available-for-sale investment securities increased million $155.8, or 170.57%, to $247.2 million at December 31, 2024 compared to December 31, 2023.
Cash and cash equivalents Cash and cash equivalents increased $18.3 million, or 15.6%, to $135.7 million at December 31, 2025 compared to December 31, 2024. Investment securities Total available-for-sale investment securities decreased $64.6 million, or 26.1%, to $182.6 million at December 31, 2025 compared to December 31, 2024.
Loans Loans, net of deferred loan fees and costs, increased $270.5 million, or 17.47%, to $1.82 billion at December 31, 2024 compared to December 31, 2023. The primary reasons for the increase in net loans were the $255.5 million in loans acquired from CFC and a $15.0 million increase from existing operations.
Loans Loans, net of deferred loan fees and costs, decreased $2.5 million, or 0.1%, to $1.82 billion at December 31, 2025 compared to December 31, 2024.
The increase in the Company’s deposits consisted of increases in money market deposits of $136.5 million, certificates of deposit of $131.6 million, interest-bearing demand deposits of $52.6 million, non-interest-bearing deposits of $51.7 million, and savings deposits of $24.4 million.
The decrease in the Company’s deposits consisted primarily of decreases in certificates of deposit of $45.0 million, money market deposits of $26.3 million, non-interest-bearing demand deposits of $15.0 million, and savings deposits of $3.1 million, partially offset by an increase in interest-bearing demand deposits of $33.0 million.
The Company’s CRE loan portfolio, which includes multi-family, land, owner-occupied and non-owner-occupied CRE loans, was $1.39 billion or 76.1% of total loans of $1.82 billion at December 31, 2024. There were 774 loans in the Company’s CRE portfolio with an average and median loan size of $1.8 million and $0.6 million, respectively.
Commercial loan balances decreased due to increased selectivity in new loan originations and a continued focus on credit quality. The Company’s CRE loan portfolio, which includes multi-family, land, owner-occupied and non-owner-occupied CRE loans, was $1.34 billion or 73.9% of total loans of $1.82 billion at December 31, 2025.
Total non-interest income for the year ended December 31, 2024, decreased $9.0 million, or by 52.4%, primarily due to the $9.7 million bargain purchase gain from the Noah Bank acquisition recorded in 2023, partially offset by a 2024 increase in other non-interest income of $646 thousand and an increase in income from bank owned life insurance of $380 thousand over the same period in 2023.
Total non-interest income for the year ended December 31, 2025, increased $312 thousand, or by 3.8%, primarily due an increase in bank owned life insurance of $326 thousand, and in fees and service charges of $247 thousand, partially offset by a decrease in loan fees of $278 thousand. Non-interest expense.
Twelve Months Ended December 31, 2024 vs . 2023 Increase (Decrease) Due to Rate Volume Net (In thousands) Interest and dividend income: Loans receivable, including fees $ 5,588 $ 13,720 $ 19,308 Securities available-for-sale — Taxable 842 2,747 3,589 Tax-exempt 6 (2 ) 4 Securities held-to-maturity — (1 ) (1 ) Federal funds sold (82 ) 1,412 1,330 Other interest and dividend income 12 524 536 Total interest and dividend income $ 6,366 $ 18,400 $ 24,766 Interest expense: Demand $ 1,164 $ 123 $ 1,287 Savings 1,260 (28 ) 1,232 Money market 2,540 3,866 6,406 Certificates of deposit 7,509 6,934 14,443 Borrowings (78 ) (40 ) (118 ) Total interest expense $ 12,395 $ 10,855 $ 23,250 Change in net interest income $ (6,029 ) $ 7,545 $ 1,516 Liquidity, Commitments and Capital Resources Liquidity.
Twelve Months Ended December 31, 2025 vs . 2024 Increase (Decrease) Due to Rate Volume Net (In thousands) Interest and dividend income: Loans receivable, including fees $ (1,461 ) $ 10,643 $ 9,182 Securities available-for-sale Taxable 413 3,584 3,997 Tax-exempt (7 ) (18 ) (25 ) Securities held-to-maturity — (1 ) (1 ) Due from Federal Reserve Bank (1,296 ) (3,909 ) (5,205 ) Other interest and dividend income (172 ) (170 ) (342 ) Total interest and dividend income $ (2,523 ) $ 10,129 $ 7,606 Interest expense: Demand $ 265 $ 1,092 $ 1,357 Savings (552 ) 435 (117 ) Money market (3,637 ) 2,305 (1,332 ) Certificates of deposit (2,140 ) 496 (1,644 ) Borrowings — 58 58 Total interest expense $ (6,064 ) $ 4,386 $ (1,678 ) Change in net interest income $ 3,541 $ 5,743 $ 9,284 Liquidity, Commitments and Capital Resources Liquidity.
Net interest income. Net interest income for the twelve-month period ended December 31, 2024, was $66.5 million, an increase of $1.5 million, or 2.3%, from 2023. The increase from the previous year was the result of an increase in interest income of $24.8 million, or 25.2%, partially offset by an increase in interest expense of $23.3 million, or 70.1%.
The increase from the previous year was the result of an increase in interest income of $7.6 million, or 6.2%, and a decrease in interest expense of $1.7 million, or 3.0%. Total interest and dividend income.
This year-to-date decrease was primarily the result of a $9.7 bargain purchase gain which included a tax benefit of $2.0 million in 2023 from the Company’s acquisition of Noah Bank in May of 2023, and the purchase accounting adjustments recorded in 2024 related to the CFC acquisition, which included an increase of $1.5 million in the provision for credit losses when comparing both periods.
This increase was primarily the result of the purchase accounting adjustments recorded in 2024 reducing net income, which were related to the Cornerstone "CFC" acquisition, and included merger related expenses of $7.8 million. 45 Net interest income. Net interest income for the twelve-month period ended December 31, 2025, was $75.8 million, an increase of $9.3 million, or 14.0%, from 2024.
Total assets were $2.34 billion at December 31, 2024, an increase of $423.7 million, or 22.11% when compared to $1.92 billion at the end of 2023. The primary reasons for the increase in total assets were the acquisition of CFC on August 23, 2024, which had approximately $303.5 million in assets at closing, and increases from existing core operations.
Total assets were $2.29 billion at December 31, 2025, a decrease of $55.1 million, or 2.35% when compared to $2.34 billion at the end of 2024. The primary reason for the decrease in total assets was related to a decrease in investment securities of $64.6 million, partially offset by an increase in cash and cash equivalents of $18.3 million.
The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and anticipated prepayments of adjustable-rate loans and fixed-rate loans, and as a result of contractual rate adjustments on adjustable-rate loans. 3 Months or Less More than 3 Months to 1 Year More than 1 Year to 3 Years More than 3 Years to 5 Years More than 5 Years Non-Rate Sensitive Total Amount (Dollars in thousands) Interest-earning assets: (1) Investment securities $ 15,364 $ 36,842 $ 59,335 $ 35,919 $ 113,336 $ (13,464 ) $ 247,332 Loans receivable 443,443 219,100 541,988 502,376 103,380 (15,069 ) 1,795,218 Other interest-earnings assets (2) 102,508 — — — — — 102,508 Total interest-earning assets $ 561,315 $ 255,942 $ 601,323 $ 538,295 $ 216,716 $ (28,533 ) $ 2,145,058 Interest-bearing liabilities: Checking and savings accounts $ 471,439 $ — $ — $ — $ — $ 471,439 Money market accounts 490,543 — — — — — 490,543 Certificate accounts 145,858 582,477 38,162 3,174 — — 769,671 Borrowings — — — — — — — Total interest-bearing liabilities $ 1,107,840 $ 582,477 $ 38,162 $ 3,174 $ — $ — $ 1,731,653 Interest-earning assets less interest-bearing liabilities $ (546,525 ) $ (326,535 ) $ 563,161 $ 535,121 $ 216,716 $ (28,533 ) $ 413,405 Cumulative interest-rate sensitivity gap (3) $ (546,525 ) $ (873,060 ) $ (309,899 ) $ 225,222 $ 441,938 Cumulative interest-rate gap as a percentage of total assets at December 31, 2024 -23.35 % -37.31 % -13.24 % 9.62 % 18.88 % Cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities at December 31, 2024 50.67 % 48.35 % 82.07 % 113.01 % 125.52 % (1) Interest-earnings assets are included in the period in which the balances are expected to be redeployed and/or repriced as a result of anticipated prepayments, scheduled rate adjustments and contractual maturities.
The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and anticipated prepayments of adjustable-rate loans and fixed-rate loans, and as a result of contractual rate adjustments on adjustable-rate loans. 3 Months or Less More than 3 Months to 1 Year More than 1 Year to 3 Years More than 3 Years to 5 Years More than 5 Years Non-Rate Sensitive Total Amount (Dollars in thousands) Interest-earning assets: (1) Investment securities $ 31,049 $ 38,467 $ 35,353 $ 23,105 $ 54,595 $ — $ 182,569 Loans receivable 364,896 263,016 654,877 416,104 119,849 (22,651 ) 1,796,091 Other interest-earnings assets (2) 121,014 — — — — — 121,014 Total interest-earning assets $ 516,959 $ 301,483 $ 690,230 $ 439,209 $ 174,444 $ (22,651 ) $ 2,099,674 Interest-bearing liabilities: Checking and savings accounts $ 501,268 $ — $ — $ — $ — $ 501,268 Money market accounts 464,205 — — — — — 464,205 Certificate accounts 307,642 381,215 32,337 3,513 — — 724,707 Borrowings — — — — — — — Total interest-bearing liabilities $ 1,273,115 $ 381,215 $ 32,337 $ 3,513 $ — $ — $ 1,690,180 Interest-earning assets less interest-bearing liabilities $ (756,156 ) $ (79,732 ) $ 657,893 $ 435,696 $ 174,444 $ (22,651 ) $ 409,494 Cumulative interest-rate sensitivity gap (3) $ (756,156 ) $ (835,888 ) $ (177,995 ) $ 257,701 $ 432,145 Cumulative interest-rate gap as a percentage of total assets at December 31, 2025 (33.09 )% (36.58 )% (7.81 )% 11.28 % 18.92 % Cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities at December 31, 2025 40.61 % 49.47 % 89.42 % 115.25 % 125.59 % (1) Interest-earnings assets are included in the period in which the balances are expected to be redeployed and/or repriced as a result of anticipated prepayments, scheduled rate adjustments and contractual maturities.
The $5.1 million provision for 2024 consists of a $5.5 million provision associated with the company’s loan portfolio, offset by a credit to the provision of $360 thousand associated with unfunded commitments. The provision for credit losses on loans includes $3.2 million related to non-purchased-credit-deteriorated loans acquired in the CFC acquisition.
The $6.7 million provision for 2025 consists of a $6.6 million provision associated with the Company’s loan portfolio, and a provision of $38 thousand associated with unfunded commitments.
Removed
This increase was related to the purchase of mortgage-backed securities of U.S. government sponsored enterprises, and U.S government agency securities, along with $14.0 million in securities acquired in the CFC acquisition during the year ended December 31, 2024.
Added
The decrease was primarily due to principal repayments of $77.7 million and $3.5 million of maturities or calls of available-for-sale securities during 2025, partially offset by purchases of available for sale securities in the amount of $11.6 million and a decrease of $5.1 million attributed to the unrealized losses associated with the available-for-sale portfolio.
Removed
The increase was due to the delinquency of two commercial real estate loans totaling $25.4 million with collateral supporting each loan. The Company is a participant in these loans and is currently evaluating its options with the lead bank, including but not limited to placing the loans on the market for sale.
Added
There were 740 loans in the Company’s CRE portfolio with an average and median loan size of $1.8 million and $0.6 million, respectively. LTV estimates are less than 70% for $1.23 billion or 91.7% of the CRE portfolio and less than 80% for $1.33 billion or 99.3% of the CRE portfolio.
Removed
Deposits Total deposits on December 31, 2024, increased $396.9 million, or 24.26%, when compared to December 31, 2023. The primary reasons for the increase in total deposits were the $282.8 million in deposits acquired from CFC and an increase of $114.1 million from existing branch operations.
Added
The decrease was due primarily the result of $10.0 million in charge-offs recorded during 2025, of which $9.9 million was recorded during the second quarter of 2025. Deposits Total deposits on December 31, 2025, decreased $56.4 million, or 2.78%, when compared to December 31, 2024.
Removed
The following table sets forth average balance sheets, yields and costs, and certain other information for the years indicated. The average yields and costs of funds shown are derived by dividing income or expense by the daily average balance of assets or liabilities, respectively, for the periods presented.
Added
While deposits are our primary source of funds, when needed we are also able to generate cash through borrowings from the FHLB-NY.
Removed
ALCO reports interest rate sensitivity, liquidity, capital and investment-related matters on a quarterly basis to our board of directors.
Added
Contractual Obligations. We have non-cancelable operating leases for branch offices and our operations center.
Removed
At December 31, 2024, we had remaining available capacity with FHLB-NY, subject to certain collateral restrictions, of $554.8 million.
Added
Change in Interest Rates Net Portfolio Value NPV as % of Portfolio Value of Assets In Basis Points (Rate Shock) Amounts $ Change % Change EVE/EVA 1 Change (Dollars in thousands) 300 $ 323,707 $ (29,733 ) (8.41 )% 14.89 % (0.47 ) 200 $ 335,871 $ (17,569 ) (4.97 )% 15.17 % (0.19 ) 100 $ 344,775 $ (8,665 ) (2.45 )% 15.28 % (0.08 ) Static $ 353,440 $ — 15.36 % (100) $ 350,890 $ (2,550 ) (0.72 )% 15.00 % (0.36 ) (200) $ 335,285 $ (18,155 ) (5.14 )% 14.16 % (1.20 ) (300) $ 315,529 $ (37,911 ) (10.73 )% 13.16 % (2.20 ) 1.
Removed
Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.
Added
Economic Value of Equity (EVE) divided by Economic Value of Assets (EVA) As is the case with the GAP Table, certain shortcomings are inherent in the methodology used in the above interest rate risk measurements.
Removed
Change in Interest Rates Net Portfolio Value NPV as % of Portfolio Value of Assets In Basis Points (Rate Shock) Amounts $ Change % Change EVE/EVA 1 Change (Dollars in thousands) 300 $ 307,333 $ (37,478 ) -10.87 % 14.05% (0.81 ) 200 $ 322,552 $ (22,259 ) -6.46 % 14.46% (0.40 ) 100 $ 334,236 $ (10,575 ) -3.07 % 14.69% (0.17 ) Static $ 344,811 $ — 14.86% (100) $ 357,192 $ 12,381 3.59 % 15.12% 0.26 (200) $ 361,831 $ 17,020 4.94 % 15.11% 0.25 (300) $ 352,480 $ 7,669 2.22 % 14.55% (0.31 ) 1 Economic Value of Equity (EVE) divided by Economic Value of Assets (EVA) As is the case with the GAP Table, certain shortcomings are inherent in the methodology used in the above interest rate risk measurements.
Added
These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control).
Removed
All, or part, of the principal balance of loans receivable are charged off to the allowance for credit losses when it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Goodwill and Core Deposit Intangible.
Added
The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the potential impact of partial government shutdown caused by budget stalemate in Congress, higher tariffs imposed by the Trump administration, higher inflation levels, and general economic concerns, all of which could impact economic growth and could cause an increase in loan delinquencies, a reduction in financial transactions and business activities including decreased deposits and reduced loan originations, difficulties in managing liquidity in a rapidly changing and unpredictable market, and supply chain disruptions.
Removed
For mergers and acquisitions, we are required to record the assets acquired, including identified intangible assets such as core deposit intangibles, and the liabilities assumed at their fair value.
Removed
The difference between consideration and the net fair value of assets acquired is recorded as goodwill or a bargain purchase gain if the acquired net fair value of assets acquired exceeds the consideration.
Removed
Management uses significant estimates and assumptions to value such items, including projected cash flows, repayment rates, default rates and losses assuming default, discount rates and realizable collateral values. The allowance for credit losses for PCD loans is recognized within acquisition accounting.
Removed
The allowance for credit losses for non-PCD assets is recognized as provision for credit losses in the same reporting period as the merger or acquisition. Fair value adjustments are amortized or accreted into the income statement over the estimated life of the acquired assets or assumed liabilities.
Removed
The purchase date valuations and any subsequent adjustments determine the amount of goodwill recognized in connection with the merger or acquisition. The use of different assumptions could produce significantly different valuation results, which could have material positive or negative effects on our results of operations.
Removed
Both goodwill and the core deposit intangible asset are reviewed for impairment annually or when events and circumstances indicate that an impairment may have occurred.
Removed
Applicable accounting guidance requires an annual review of the fair value of a Reporting Unit that has goodwill in order to determine if it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a Reporting Unit is less than its carrying amount, including goodwill.
Removed
A qualitative factor test can be performed to determine whether it is necessary to perform a quantitative goodwill impairment test.
Removed
If this qualitative test determines it is not more likely than not (less than 50% probability) that the fair value of the Reporting Unit is less than the Carrying Value, then the Company does not have to perform a quantitative test and goodwill can be considered not impaired.
Removed
The Company performed its annual review at May 31, 2024 and determined that it was more than 50% probable the fair value of the Reporting Unit exceeds the then Carrying Value, therefore a quantitative test was not required as of May 31, 2024.