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What changed in Dime Community Bancshares, Inc. /NY/'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Dime Community Bancshares, Inc. /NY/'s 2022 and 2023 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 2023 report.

+243 added−249 removedSource: 10-K (2024-02-22) vs 10-K (2023-02-28)

Top changes in Dime Community Bancshares, Inc. /NY/'s 2023 10-K

243 paragraphs added · 249 removed · 193 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

56 edited+7 added−12 removed66 unchanged
Biggest changeAs of the date 11 Table of Contents of its most recent CRA examination, which was conducted by the Federal Reserve Bank of New York and the NYSDFS, the Bank’s CRA performance was rated “Outstanding”. New York law imposes a similar obligation on the Bank to serve the credit needs of its community.
Biggest changeThe applicability date for the majority of the provisions in the CRA regulations is January 1, 2026, and additional requirements will be applicable on January 1, 2027. As of the date of its most recent CRA examination, which was conducted by the Federal Reserve Bank of New York and the NYSDFS, the Bank’s CRA performance was rated “Outstanding”.
For example, a bank, which is categorized as “undercapitalized” would be subject to other growth limitations, would be required to submit a capital restoration plan, and a holding company that controls such a bank would be required to guarantee that the bank complies with the restoration plan. A “significantly undercapitalized” bank would be subject to additional restrictions.
For example, a bank which is categorized as “undercapitalized” would be subject to other growth limitations, would be required to submit a capital restoration plan, and a holding company that controls such a bank would be required to guarantee that the bank complies with the capital restoration plan. A “significantly undercapitalized” bank would be subject to additional restrictions.
The Holding Company, as a bank holding company controlling the Bank, is subject to the Bank Holding Company Act of 1956, as amended (“BHCA”), and the rules and regulations of the FRB under the BHCA applicable to bank holding companies. We are required to file reports with, and otherwise comply with the rules and regulations of the FRB.
The Company, as a bank holding company controlling the Bank, is subject to the Bank Holding Company Act of 1956, as amended (“BHCA”), and the rules and regulations of the FRB under the BHCA applicable to bank holding companies. We are required to file reports with, and otherwise comply with the rules and regulations of the FRB.
These deposits, together with funds generated from operations and borrowings, are invested primarily in: (1) commercial real estate loans; (2) multi-family mortgage loans; (3) residential mortgage loans; (4) secured and unsecured commercial and consumer loans; (5) home equity loans; (6) construction and land loans; (7) Federal Home Loan Bank (“FHLB”), Federal National Mortgage Association (“Fannie Mae”), Government National Mortgage Association (“Ginnie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) mortgage-backed securities, collateralized mortgage obligations and other asset backed securities; (8) U.S.
These deposits, together with funds generated from operations and borrowings, are invested primarily in: (1) commercial real estate loans (“CRE”); (2) multi-family mortgage loans; (3) residential mortgage loans; (4) secured and unsecured commercial and consumer loans; (5) home equity loans; (6) construction and land loans; (7) Federal Home Loan Bank (“FHLB”), Federal National Mortgage Association (“Fannie Mae”), Government National Mortgage Association (“Ginnie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) mortgage-backed securities, collateralized mortgage obligations and other asset backed securities; (8) U.S.
In reviewing applications seeking approval of merger and acquisition transactions, the FDIC will consider, among other factors, the competitive effect and public benefits of the transactions, the capital position of the combined organization, the risks to the stability of the U.S. banking or 9 Table of Contents financial system, the applicant’s performance record under the CRA (see “Community Reinvestment”) and its compliance with fair housing and other consumer protection laws and the effectiveness of the subject organizations in combating money laundering activities. ​ Privacy and Security Protection ​ The federal banking agencies have adopted regulations for consumer privacy protection that require financial institutions to adopt procedures to protect customers and their “non-public personal information.” The regulations require the Bank to disclose its privacy policy, including identifying with whom it shares “non-public personal information,” to customers at the time of establishing the customer relationship, and annually thereafter if there are changes to its policy.
In reviewing applications seeking approval of merger and acquisition transactions, the FRB will consider, among other factors, the competitive effect and public benefits of the transactions, the capital position of the combined organization, the risks to the stability of the U.S. banking or financial system, the applicant’s performance record under the CRA (see “Community Reinvestment”) and its compliance with fair housing and other consumer protection laws and the effectiveness of the subject organizations in combating money laundering activities. ​ 9 Table of Contents Privacy and Security Protection The federal banking agencies have adopted regulations for consumer privacy protection that require financial institutions to adopt procedures to protect customers and their “non-public personal information.” The regulations require the Bank to disclose its privacy policy, including identifying with whom it shares “non-public personal information,” to customers at the time of establishing the customer relationship, and annually thereafter if there are changes to its policy.
Dividends Under federal law and applicable regulations, a New York member bank may generally declare a dividend, without prior regulatory approval, in an amount equal to its year-to-date retained net income plus the prior two years’ retained net income that is still available for dividend. Dividends exceeding those amounts require application to and approval by the NYSDFS and FRB.
Dividends Under federal law and applicable regulations, a New York state member bank may generally declare a dividend, without prior regulatory approval, in an amount equal to its year-to-date retained net income plus the prior two years’ retained net income that is still available for dividend. Dividends exceeding those amounts require application to and approval by the NYSDFS and FRB.
Applicable regulations classify investment securities into five different types and, depending on its type, a state member bank may have the authority to deal in and underwrite the security. New York-chartered state member banks may also purchase certain non-investment securities that can be reclassified and underwritten as loans.
Applicable regulations classify investment securities into five different types and, depending on its type, a state member bank may have the authority to deal in and underwrite the security. New York state member banks may also purchase certain non-investment securities that can be reclassified and underwritten as loans.
Current FRB regulations provide that a bank holding company that is not well capitalized or well managed, as such terms are defined in the regulations, or that is subject to any unresolved supervisory issues, is required to give the FRB prior written notice of any repurchase or redemption of its outstanding equity securities if the gross consideration for repurchase or redemption, when combined with the net consideration paid for all such repurchases or redemptions during the preceding 12 months, will be equal to 10% or more of the company’s consolidated net worth.
Current FRB regulations provide that a bank holding company that is not well capitalized or well managed, as such terms are defined in the regulations, or that is subject to any unresolved supervisory issues, is required to give the FRB prior written notice of any repurchase or redemption of its outstanding equity securities if the gross consideration for repurchase or redemption, when combined with the net consideration paid for all such repurchases or redemptions during the 12 Table of Contents preceding 12 months, will be equal to 10% or more of the company’s consolidated net worth.
In addition, FRB guidance sets forth the supervisory expectation that bank holding companies will inform and consult with FRB staff in advance of issuing a dividend that exceeds earnings for the quarter and should inform the FRB and should eliminate, defer or significantly reduce dividends if (i) net income available to stockholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends, (ii) prospective rate of earnings retention is not consistent with the bank holding company’s capital needs and overall current and prospective financial condition, or (iii) the bank holding company will not meet, or 12 Table of Contents is in danger of not meeting, its minimum regulatory capital adequacy ratios.
In addition, FRB guidance sets forth the supervisory expectation that bank holding companies will inform and consult with FRB staff in advance of issuing a dividend that exceeds earnings for the quarter and should inform the FRB and should eliminate, defer or significantly reduce dividends if (i) net income available to stockholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends, (ii) prospective rate of earnings retention is not consistent with the bank holding company’s capital needs and overall current and prospective financial condition, or (iii) the bank holding company will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.
There can be no assurance that these proposed laws, rules and regulations, or any other laws, rules or regulations, will not be adopted in the future, which could make compliance more difficult or expensive or otherwise adversely affect our business, financial condition or prospects.
There can be no assurance that laws, rules and regulations currently proposed, or any other laws, rules or regulations, will not be adopted in the future, which could make compliance more difficult or expensive or otherwise adversely affect our business, financial condition or prospects.
Under the revised prompt corrective action requirements, insured depository institutions are required to meet the following in order to qualify as “well capitalized:” (1) a common equity tier 1 risk-based capital ratio of 6.5% (new standard); (2) a tier 1 risk-based capital ratio of 8.0% (increased from 6.0%); (3) a total risk-based capital ratio of 10.0% (unchanged); and (4) a tier 1 leverage ratio of 5.0% (unchanged).
Under the revised prompt corrective action requirements, insured depository institutions are required to meet the following in order to qualify as “well capitalized”: (1) a common equity tier 1 risk-based capital ratio of 6.5% (new standard); (2) a tier 1 risk-based capital ratio of 8.0% (increased from 6.0%); (3) a total risk-based capital ratio of 10.0% (unchanged); and (4) a tier 1 leverage ratio of 5.0% (unchanged).
Assessments for institutions with $10 billion or more of assets are primarily based on a scorecard approach by the FDIC, including factors such as examination ratings, financial measures, and modeling measuring the institution’s ability to withstand asset-related and funding-related stress and potential loss to 7 Table of Contents the DIF in the event of the institution’s failure.
Assessments for institutions with $10 billion or more of assets are primarily based on a scorecard approach by the FDIC, including factors such as examination ratings, financial measures, and modeling measuring the institution’s ability to withstand asset-related and funding-related stress and potential loss to the DIF in the event of the institution’s failure.
We offered an 8-week summer internship program through local colleges that provided students with valuable experience in the professional fields they are considering career paths. It also provides a post-graduation pipeline of future employees. In addition, we maintain equity incentive plans under which we may issue shares of our common stock. Refer to Note 20.
We offer an 8-week summer internship program through local colleges that provide students with valuable experience in the professional fields they are considering career paths. It also provides a post-graduation pipeline of future employees. In addition, we maintain equity incentive plans under which we may issue shares of our common stock. Refer to Note 20.
With certain exceptions, loans to an executive officer, other than loans for the education of the officer’s children and certain loans secured by the officer’s residence, may not exceed the greater of $25,000 or 2.5% of the bank’s unimpaired capital and unimpaired surplus, but in no event more than $100,000.
With certain exceptions, loans to an executive officer, other than loans for the education of the officer’s children and certain loans secured by the officer’s residence, may not exceed the greater of $25,000 or 2.5% of the bank’s unimpaired capital and unimpaired surplus, and in no event can be more than $100,000.
Under these restrictions, the aggregate amount of the loans to any insider and the insider’s related interests may not exceed the loans-to-one-borrower limit applicable to national banks. All loans by a bank to all insiders and insiders’ related interests in the aggregate may not exceed the bank’s unimpaired capital and unimpaired surplus.
Under these restrictions, 10 Table of Contents the aggregate amount of the loans to any insider and the insider’s related interests may not exceed the loans-to-one-borrower limit applicable to national banks. All loans by a bank to all insiders and insiders’ related interests in the aggregate may not exceed the bank’s unimpaired capital and unimpaired surplus.
In addition, the bank holding companies may generally only engage in activities that are closely related to banking as determined by the FRB. Bank holding companies that meet certain criteria may opt to become a financial holding company and thereby engage in a broader array of financial activities.
In addition, bank holding companies may generally only engage in activities that are closely related to banking as determined by the FRB. Bank holding companies that meet certain criteria may opt to become a financial holding company and thereby engage in a broader array of financial activities. The Company has elected not to become a financial holding company.
Our operations are also subject to extensive regulation by other federal, state and local governmental authorities and it is subject to various laws and judicial and administrative decisions imposing requirements and restrictions on part or all of its operations.
Our operations are also subject to extensive regulation by other federal, state and local governmental authorities and the Company is subject to various laws and judicial and administrative decisions imposing requirements and restrictions on part or all of its operations.
Institutions that have not exercised the AOCI opt-out, (Dime has exercised), have AOCI incorporated into common equity tier 1 capital (including unrealized gains and losses on available-for-sale-securities). Calculation of all types of regulatory capital is subject to deductions and adjustments specified in the regulations.
Institutions that have not exercised the AOCI opt-out have AOCI incorporated into common equity tier 1 capital (including unrealized gains and losses on available-for-sale-securities). The Bank has exercised this opt-out election. Calculation of all types of regulatory capital is subject to deductions and adjustments specified in the regulations.
Federal law provides that institutions with more than $10 billion in total assets, such as the Bank, are examined by the Consumer Financial Protection Bureau (“CFPB”), rather than its primary federal bank regulator, as to compliance with certain federal consumer protection and fair lending laws and regulations.
Federal law provides that institutions with more than $10 billion in total assets, such as the Bank, are examined by the Consumer Financial Protection Bureau (“CFPB”) as to compliance with certain federal consumer protection and fair lending laws and regulations.
In March 2017, the NYSDFS made effective regulations that require financial institutions regulated by the NYSDFS, including the Bank, to, among other things, (i) establish and maintain a cyber security program designed to ensure the confidentiality, integrity and availability of their information systems; (ii) implement and maintain a written cyber security policy setting forth policies and procedures for the protection of their information systems and nonpublic information; and (iii) designate a Chief Information Security Officer.
In March 2017, the NYSDFS issued regulations requiring financial institutions regulated by the NYSDFS, including the Bank, to, among other things, (i) establish and maintain a cyber security program designed to ensure the confidentiality, integrity and availability of their information systems; (ii) implement and maintain a written cyber security policy setting forth policies and procedures for the protection of their information systems and nonpublic information; and (iii) designate a Chief Information Security Officer.
Generally, such loans must be made on substantially the same terms as, and follow credit underwriting procedures that are no less stringent than, those that are prevailing at the time for comparable transactions with other persons and must not present more than a normal risk of collectability.
Generally, such loans must be made on substantially the same terms as, and follow credit underwriting procedures that are no less stringent than, those that are prevailing at the time for comparable transactions with other persons and must not present more than a normal risk of repayment or present other unfavorable features.
The guidelines prohibit excessive compensation as an unsafe and unsound practice and describe compensation as excessive 8 Table of Contents when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director, or principal shareholder.
The guidelines prohibit excessive compensation as an unsafe and unsound practice and describe compensation as excessive when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director, or principal shareholder.
Sections 23A and 23B limit the extent to which a bank or its subsidiaries may engage in “covered transactions” with any one affiliate to an amount equal to 10% of such bank’s capital stock and surplus, and limit all such transactions with all affiliates to an amount equal to 20% of such capital stock and surplus.
Section 23A and Regulation W limit the extent to which a bank or its subsidiaries may engage in “covered transactions” with any one affiliate to an amount equal to 10% of such bank’s capital stock and surplus, and limit all such transactions with all affiliates to an amount equal to 20% of such capital stock and surplus.
A bank’s loans to its executive officers, directors, any owner of more than 10% of its stock (each, an insider) and any of certain entities affiliated with any such person (an insider’s related interest) are subject to the conditions and limitations imposed by Section 22(h) of the Federal Reserve Act and the FRB’s Regulation O thereunder.
A bank’s loans to its affiliates executive officers, directors, any owner of more than 10% of its stock (each, an insider) and entities controlled by such person (an insider’s related interest) are subject to the conditions and limitations imposed by Section 22(h) of the Federal Reserve Act and the FRB’s Regulation O implemented thereunder.
As is the case with institutions themselves, the capital conservation buffer was phased-in between 2016 and 2019. We met all capital adequacy requirements under the FRB’s capital rules on December 31, 2022.
As is the case with institutions themselves, the capital conservation buffer was phased-in between 2016 and 2019. The Company met all capital adequacy requirements under the FRB’s capital rules on December 31, 2023.
A subsidiary of a bank that is not also a depository institution or a “financial subsidiary” under federal law is not treated 10 Table of Contents as an affiliate of the bank for the purposes of Sections 23A and 23B; however, the FRB has the discretion to treat subsidiaries of a bank as affiliates on a case-by-case basis.
A subsidiary of a bank that is not also a depository institution or a “financial subsidiary” under federal law is generally not treated as an affiliate of the bank for the purposes of Sections 23A and 23B and Regulation W; however, the FRB has the discretion to treat subsidiaries of a bank as affiliates on a case-by-case basis.
The USA PATRIOT Act also required the federal banking agencies to take into consideration the effectiveness of controls designed to combat money-laundering activities in determining whether to approve a merger or other acquisition application of a member institution.
The USA PATRIOT Act also required the federal banking agencies to take into consideration the effectiveness of controls 11 Table of Contents designed to combat money laundering activities in determining whether to approve a merger or other acquisition application.
As of December 31, 2022, we operated 59 branch locations throughout Long Island and the New York City boroughs of Brooklyn, Queens, Manhattan, and the Bronx. Human Capital Resources Demographics and Culture As of December 31, 2022, we employed 823 full-time equivalent employees. Our employees are not represented by a collective bargaining agreement.
As of December 31, 2023, we operated 60 branch locations throughout Long Island and the New York City boroughs of Brooklyn, Queens, Manhattan, Staten Island, and the Bronx. Human Capital Resources Demographics and Culture As of December 31, 2023, we employed 851 full-time equivalent employees. Our employees are not represented by a collective bargaining agreement.
On April 26, 2016, the federal regulatory agencies approved a second proposed joint rulemaking to implement Section 956 of the Dodd-Frank Act, which prohibits incentive-based compensation that encourages inappropriate risk taking. In addition, the NYSDFS issued guidance applicable to incentive compensation in October 2016.
On April 26, 2016, the federal regulatory agencies approved a second proposed joint rulemaking to implement Section 956 of the Dodd-Frank Act, which prohibits incentive-based compensation that encourages inappropriate risk taking.
The NYSDFS and FRB have extensive enforcement authority over the institutions and holding companies that they regulate to prohibit or correct activities that violate law, regulation or a regulatory agreement or which are deemed to be unsafe or unsound banking practices.
The NYSDFS and FRB have extensive enforcement authority over the institutions and holding companies that they regulate to prohibit or correct activities that violate law, regulation or written agreements with the agencies or which are deemed to be unsafe or unsound banking practices.
Tier 1 capital is generally defined as common equity tier 1 and additional tier 1 capital. Additional tier 1 capital generally includes certain noncumulative perpetual preferred stock and related surplus and minority interests in equity accounts of consolidated subsidiaries. Total capital includes tier 1 capital (common equity tier 1 capital plus additional tier 1 capital) and tier 2 capital.
Common equity tier 1 capital is generally defined as common stockholders’ equity and retained earnings. Tier 1 capital is generally defined as common equity tier 1 and additional tier 1 capital. Additional tier 1 capital generally includes certain noncumulative perpetual preferred stock and related surplus and minority interests in equity accounts of consolidated subsidiaries.
In addition, the Bank is required to provide its customers the ability to “opt-out” of: (1) the sharing of their personal information with unaffiliated third parties if the sharing of such information does not satisfy any of the permitted exceptions; and (2) the receipt of marketing solicitations from Bank affiliates. ​ The Bank is additionally subject to regulatory guidelines establishing standards for safeguarding customer information.
In addition, the Bank is required to provide its customers the ability to “opt-out” of: (1) the sharing of their personal information with unaffiliated third parties if the sharing of such information does not satisfy any of the permitted exceptions; and (2) the receipt of marketing solicitations from Bank affiliates.
Accordingly, if the Bank engages in a merger or other acquisition, the Bank’s controls designed to combat money laundering would be considered as part of the application process. The Bank has established policies, procedures and systems designed to comply with these regulations. Dime Community Bancshares, Inc.
Accordingly, if the Bank engages in a merger or other acquisition, its controls designed to combat money laundering would be considered as part of the application process. The Bank has established policies, procedures and systems designed to comply with the BSA, USA PATRIOT Act, and regulations implemented thereunder. Dime Community Bancshares, Inc.
The statutory sections also require that all such transactions be on terms that are consistent with safe and sound banking practices. The term “covered transaction” includes the making of loans, purchase of assets, issuance of guarantees and other similar types of transactions.
Section 23A and Regulation W also require that all “covered transactions” be on terms that are consistent with safe and sound banking practices. The term “covered transaction” includes the making of loans, purchase of assets, issuance of guarantees and other similar types of transactions.
The FRB has adopted Regulation W, which comprehensively implements and interprets Sections 23A and 23B, in part by codifying prior FRB interpretations under Sections 23A and 23B. An affiliate of a bank is any company or entity that controls, is controlled by or is under common control with the bank.
The FRB has adopted Regulation W, which comprehensively implements and interprets Sections 23A and 23B, and codifies prior FRB interpretations under those sections. An affiliate of a bank includes, among other things, any company or entity that controls, is controlled by or is under common control with the bank.
The guidelines describe the federal banking agencies’ expectations for the creation, implementation and maintenance of an information security program, including administrative, technical and physical safeguards appropriate to the size and complexity of the institution and the nature and scope of its activities.
The Bank is additionally subject to regulatory guidelines establishing standards for safeguarding customer information. The guidelines describe the federal banking agencies’ expectations for the creation, implementation and maintenance of an information security program, including administrative, technical and physical safeguards appropriate for the size and complexity of the institution and the nature and scope of its activities.
In general, banks are subject to federal income tax in the same manner as other corporations. However, gains and 6 Table of Contents losses realized by banks from the sale of available-for-sale securities are generally treated as ordinary income, rather than capital gains or losses. The taxation of net income is similar to federal taxable income subject to certain modifications.
In general, banks are subject to federal income tax in the same manner as other corporations. However, gains and losses realized by banks from the sale of available-for-sale securities are generally treated as ordinary income, rather than capital gains or losses.
Tier 2 capital is comprised of capital instruments and related surplus meeting specified requirements, and may include cumulative preferred stock, mandatory convertible securities, and subordinated debt.
Total capital includes tier 1 capital (common equity tier 1 capital plus additional tier 1 capital) and tier 2 capital. Tier 2 capital is comprised of capital instruments and related surplus meeting specified requirements, and may include cumulative preferred stock, mandatory convertible securities, and subordinated debt.
Taxation The Holding Company, the Bank and its subsidiaries, with the exception of the real estate investment trust, which files its own federal and state income tax returns, report their income on a consolidated basis using the accrual method of accounting and are subject to federal taxation as well as income tax of the State, City of New York and the State of New Jersey.
Taxation The Holding Company, the Bank and its subsidiaries, report their income on a consolidated basis using the accrual method of accounting and are subject to federal taxation as well as income tax of the State and City of New York, and the State of New Jersey.
The Bank is subject to extensive regulation by the New York State Department of Financial Services (“NYSDFS”) and, as a member bank, by the Board of Governors of the Federal Reserve System (“FRB”).
The lending, investment, and other business operations of the Bank are governed by New York and federal laws and regulations. The Bank is subject to extensive regulation by the New York State Department of Financial Services (“NYSDFS”) and, as a member bank, by the Board of Governors of the Federal Reserve System (“FRB”).
The standards set forth in the guidelines are intended to ensure the security and confidentiality of customer records and information, and protect against anticipated threats or hazards to the security or integrity of such records and unauthorized access to or use of such records or information that could result in substantial customer harm or inconvenience. ​ Federal law additionally permits each state to enact legislation that is more protective of consumers’ personal information.
The standards set forth in the guidelines are intended to ensure the security and confidentiality of customer records and information, and protect against anticipated threats or hazards to the security or integrity of such records and unauthorized access to or use of such records or information that could result in substantial customer harm or inconvenience.
Loans and Investments The powers of a New York commercial bank are established by New York law and applicable federal law. New York commercial banks have authority to originate and purchase any type of loan, including commercial, commercial real estate, residential mortgages or consumer loans.
Loans and Investments The powers of a New York commercial bank (which include, for this purpose, trust companies such as the Bank) are established by New York law and applicable federal law. New York commercial banks have authority to originate and purchase any type of loan, including commercial, commercial real estate, residential mortgage, and consumer loans.
The assessment range (inclusive of possible adjustments specified by the regulations) for institutions with total assets of more than $10 billion was 1.5 to 40 basis points effective through December 31, 2022.
The assessment range (inclusive of possible adjustments specified by the regulations) for institutions with total assets of more than $10 billion is 2.5 to 42 basis points, effective January 1, 2023.
In addition, a member bank may be limited in paying cash dividends if it does not maintain the capital conservation buffer described previously under “Capitalization.” Liquidity ​ Pursuant to FDIC regulations , the Bank is required to maintain sufficient liquidity to ensure its safe and sound operation. ​ Branching ​ Subject to certain limitations, NYS and federal law permit NYS-chartered banks to establish branches in any state of the United States.
In addition, a member bank may be limited in paying cash dividends if it does not maintain the capital conservation buffer described previously under “—Capitalization.” Liquidity Pursuant to federal regulations, the Bank is required to maintain sufficient liquidity to ensure its safe and sound operation.
The existing capital requirements were effective January 1, 2015 and are the result of a final rule implementing regulatory amendments based on recommendations of the Basel Committee on Banking Supervision and certain requirements of the Dodd-Frank Act. Common equity tier 1 capital is generally defined as common stockholders’ equity and retained earnings.
The existing capital requirements were effective January 1, 2015 and are the result of a final rule implementing regulatory amendments based on recommendations of the Basel Committee on Banking Supervision and certain requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).
Insurance of deposits may be terminated by the FDIC upon a finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC.
In 2023, the FDIC approved a final rule to implement a special assessment to recover the loss to the DIF associated with the closures of Silicon Valley Bank and Signature Bank. 7 Table of Contents Insurance of deposits may be terminated by the FDIC upon a finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, order or condition imposed by the FDIC.
There are periodically privacy bills considered by the New York legislature. Management of the Company cannot predict the impact, if any, of these bills if enacted. ​ Cybersecurity more broadly has become a focus of federal and state regulators.
Federal law additionally permits each state to enact legislation that is more protective of consumers’ personal information. There are periodically privacy bills considered by the New York legislature. Management of the Company cannot predict the impact, if any, of these bills if enacted.
Pursuant to the Reform Act, the FDIC is authorized to approve the establishment by a state bank of a de novo interstate branch if the intended host state allows de novo branching within that state by banks chartered by that state. ​ Acquisitions ​ Under the Federal Bank Merger Act, prior approval of the FDIC is required for the Bank to merge with or purchase the assets or assume the deposits of another insured depository institution.
Acquisitions Under the Federal Bank Merger Act, prior approval of the FRB is required for the Bank to merge with or purchase the assets or assume the deposits of another insured depository institution.
Regulation and Supervision Dime Community Bank The Bank is a New York State-chartered trust company and a member of the Federal Reserve System (a “member bank”). The lending, investment, and other business operations of the Bank are governed by New York and federal laws and regulations.
The taxation of net income is similar to federal taxable income subject to certain modifications. 6 Table of Contents Regulation and Supervision Dime Community Bank The Bank is a New York State-chartered trust company and a member of the Federal Reserve System (a “member bank”).
The FRB may order member banks which have insufficient capital to take corrective actions.
For these purposes, the statute establishes five capital tiers: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. The FRB may order member banks which have insufficient capital to take corrective actions.
In addition, any covered transaction by an association with an affiliate and any purchase of assets or services by an association from an affiliate must be on terms that are substantially the same, or at least as favorable, to the bank as those that would be provided to a non-affiliate.
In addition, under Section 23B and Regulation W, bank transactions with affiliates, including “covered transactions,” sales of assets, and the furnishing of services, must be on terms that are substantially the same, or at least as favorable, to the bank as those prevailing at the time for comparable transactions with or involving a non-affiliate.
Effective July 22, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) permanently raised the deposit insurance available on all deposit accounts to $250,000 with a retroactive effective date of January 1, 2008. The FDIC assesses insured depository institutions to maintain the DIF. Under the FDIC’s risk-based assessment system, institutions deemed less risky pay lower assessments.
Federal Deposit Insurance The Bank is a member of the DIF, which is administered by the FDIC. Our deposit accounts are insured by the FDIC. The deposit insurance available on all deposit accounts is $250,000. The FDIC assesses insured depository institutions to maintain the DIF. Under the FDIC’s risk-based assessment system, institutions deemed less risky pay lower assessments.
Prompt Corrective Regulatory Action Federal law requires, among other things, that federal bank regulatory authorities take “prompt corrective action” with respect to institutions that do not meet minimum capital requirements. For these purposes, the statute establishes five capital tiers: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized.
In addition, the NYSDFS issued guidance applicable to incentive compensation in October 2016. 8 Table of Contents Prompt Corrective Action Federal law requires, among other things, that federal bank regulatory authorities take “prompt corrective action” with respect to institutions that do not meet minimum capital requirements.
As the COVID-19 pandemic evolved, we pivoted the schedules of corporate staff to ensure their safety while still providing support to our customers. Our branch network remained operational with minimal disruption throughout the pandemic. Training, Development and Retention We are committed to retaining employees by being competitive in providing cash and non-cash rewards, benefits, recognition, and professional development opportunities.
We sponsor various wellness programs that promote the health and wellness of our employees. Training, Development and Retention We are committed to retaining employees by being competitive in providing cash and non-cash rewards, benefits, recognition, and professional development opportunities.
See “Item 1A - Risk Factors” for a further discussion of cybersecurity risks. ​ Transactions with Affiliates and Insiders Sections 23A and 23B of the Federal Reserve Act govern transactions between a member bank and its affiliates, which includes the Company.
In November 2023, NYSDFS amended these regulations to include heightened governance requirements and an expansion of the breadth and depth of required policies and procedures, among other things. Transactions with Affiliates and Insiders Sections 23A and 23B of the Federal Reserve Act govern transactions between a member bank and its affiliates, which includes the Company.
On May 5, 2022, the Federal Reserve Board and the Federal Deposit Insurance Corporation released a notice of propose rulemaking to strengthen and modernize the CRA regulations and framework.
On October 24, 2023, the FDIC, the Federal Reserve Board, and the Office of the Comptroller of the Currency issued a final rule to strengthen and modernize the CRA regulations.
Removed
We sponsor various wellness programs that promote the health and wellness of our employees. In March 2020, the United States declared a National Public Health Emergency in response to the COVID-19 pandemic, which presented a challenge of maintaining the health and safety of our employees.
Added
Branching Subject to certain limitations, with approval of the FRB, New York state-chartered banks and trust companies can open their initial branches in other states by establishing a de novo branch at any location at which a bank chartered by that state could also establish a branch.
Removed
Federal Deposit Insurance The Bank is a member of the DIF, which is administered by the FDIC. Our deposit accounts are insured by the FDIC.
Added
Federal law also permits an interstate merger transaction involving the acquisition of a branch without the acquisition of the bank only if the law of the state in which the branch is located permits out-of-state banks to acquire a branch of a bank in such state without acquiring the bank.
Removed
The FDIC has the authority to increase insurance assessments and adopted a final rule in October 2022 to increase initial base deposit insurance assessment rates beginning in the first quarterly assessment period of 2023. As a result, effective January 1, 2023, assessment rates for institutions of the Bank’s size will range from 3.5 to 42 basis points.
Added
Cybersecurity more broadly has become a focus of federal and state banking agencies, including during the regulators’ examinations.
Removed
In general, federal law allows the FDIC, and the NYBL allows the Superintendent, to approve an application by a state banking institution to acquire interstate branches by merger. The NYBL authorizes NYS-chartered banks to open and occupy de novo branches outside the State of New York.
Added
Under the final rule, banks with assets of at least $2 billion as of December 31 in both of the prior two calendar years will be a “large bank.” The agencies will evaluate large banks under four performance tests: the Retail Lending Test, the Retail Services and Products Test, the Community Development Financing Test, and the Community Development Services Test.
Removed
In March 2015, federal regulators issued two statements regarding cybersecurity to reiterate regulatory expectations regarding cyberattacks compromising credentials and business continuity planning to ensure the rapid recovery of an institution’s operations after a cyberattack involving destructive malware.
Added
New York law imposes a similar obligation on the Bank to serve the credit needs of its community. New York law contains its own community invested-related provisions, which are substantially similar to federal law.
Removed
In October 2016, federal regulators jointly issued an advance notice of proposed rulemaking on enhanced cyber risk management standards that are intended to increase the operational resilience of large and interconnected entities under their supervision.
Added
The Bank Secrecy Act and USA PATRIOT Act The Bank Secrecy Act (“BSA”) and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“USA PATRIOT Act”) require the Bank to implement a compliance program to detect and prevent money laundering, terrorist financing, and crime.
Removed
Once established, the enhanced cyber risk management standards would help to reduce the potential impact of a cyber-attack or other cyber-related failure on the financial system.
Added
Together, the BSA and USA PATRIOT Act require the Bank to implement internal controls, conduct customer due diligence, maintain records, and file reports.
Removed
The advance notice of proposed rulemaking addressed five categories of cyber standards: (1) cyber risk governance; (2) cyber risk management; (3) internal dependency management; (4) external dependency management; and (5) incident response, cyber resilience, and situational awareness.
Removed
In January 2020, the FDIC issued a “Statement on Heightened Cybersecurity Risk” to remind regulated institutions of sound cybersecurity risk management principles.
Removed
In addition, in November 2021, the federal banking agencies published a final rule that, among other things, requires banking organizations to notify their primary federal regulator as soon as possible and no later than 36 hours after the discovery of a “computer-security incident” that rises to the level of a “notification incident” within the meaning attributed to those terms by the final rule.
Removed
The Company will continue to monitor any developments related to these proposed rulemakings as part of its ongoing cyber risk management.
Removed
New York law contains its own CRA provisions, which are substantially similar to federal law. USA PATRIOT Act The USA PATRIOT Act of 2001 gave the federal government new powers to address terrorist threats through enhanced domestic security measures, expanded surveillance powers, increased information sharing and broadened anti-money laundering requirements.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

27 edited+13 added−15 removed72 unchanged
Biggest changeIf we cannot raise additional capital when needed, our ability to further expand our operations through internal growth and acquisitions could be materially impaired and our financial condition and liquidity could be materially and adversely affected. ​ Operational Risk Factors Our business may be adversely affected by conditions in the financial markets and economic conditions generally. ​ A favorable business environment is generally characterized by, among other factors, economic growth, efficient capital markets, low inflation, high business and investor confidence, and strong business earnings.
Biggest changeIf we cannot raise additional capital when needed, our ability to further expand our operations through internal growth and acquisitions could be materially impaired and our financial condition and liquidity could be materially and adversely affected. ​ Operational Risk Factors A lack of liquidity could adversely affect the Company’s financial condition and results of operations. ​ Liquidity is essential to our business.
Although the CRE Guidance did not establish specific lending limits, it provides that a bank’s commercial real estate lending exposure may receive increased supervisory scrutiny where total non-owner occupied commercial real estate loans, including loans secured by apartment buildings, investor commercial real estate and construction and land loans, represent 300% or more of an institution’s total risk-based capital and the outstanding balance of the commercial real estate loan portfolio has increased by 50% or more during the preceding 36 months.
Although the CRE Guidance did not establish specific lending limits, it provides that a bank’s commercial real estate lending exposure may receive increased supervisory scrutiny where total non-owner occupied CRE loans, including loans secured by apartment buildings, investor CRE and construction and land loans, represent 300% or more of an institution’s total risk-based capital and the outstanding balance of the CRE loan portfolio has increased by 50% or more during the preceding 36 months.
If one or more of such events were to occur, this 19 Table of Contents potentially could jeopardize confidential and other information processed and stored in, and transmitted through, our systems or otherwise cause interruptions or malfunctions in our operations or our customers' operations. In addition, we maintain interfaces with certain third-party service providers.
If one or more 19 Table of Contents of such events were to occur, this potentially could jeopardize confidential and other information processed and stored in, and transmitted through, our systems or otherwise cause interruptions or malfunctions in our operations or our customers' operations. In addition, we maintain interfaces with certain third-party service providers.
As a result of this legislation as well as previously existing laws and regulations, it is possible that rental income might not rise sufficiently over time to satisfy increases in the loan rate at repricing or increases in overhead expenses ( e.g. , utilities, taxes, etc.).
As a result of this legislation as well as previously existing laws and regulations, it is possible that rental income might not rise sufficiently over time to satisfy increases in the loan rate at repricing or increases in overhead expenses ( e.g. , utilities, taxes, maintenance, etc.).
Our profitability depends on our ability to manage our assets and liabilities during periods of changing market interest rates. During 2022, in response to accelerated inflation, the Federal Reserve implemented monetary tightening policies, resulting in significantly increased interest rates.
Our profitability depends on our ability to manage our assets and liabilities during periods of changing market interest rates. During 2022 and 2023, in response to accelerated inflation, the Federal Reserve implemented monetary tightening policies, resulting in significantly increased interest rates.
Mergers and acquisitions involve a number of risks and challenges, including the expenses involved; potential diversion of management’s attention from other strategic matters; integration of branches and operations acquired; outflow of customers from the acquired branches; retention of personnel from acquired companies or branches; competing effectively in geographic areas not previously served; managing growth resulting from the transaction; and dilution in the acquirer's book and tangible book value per share. ​ Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed or the cost of that capital may be very high. ​ We are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations.
Mergers and acquisitions involve a number of risks and challenges, including the expenses involved; potential diversion of management’s attention from other strategic matters; integration of branches and operations acquired; outflow of customers from the acquired branches; retention of personnel from acquired companies or branches; competing effectively in geographic areas not previously served; managing growth resulting from the transaction; and dilution in the acquirer's book and tangible book value per share. 17 Table of Contents ​ Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed or the cost of that capital may be very high. ​ We are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations.
Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, declines in housing and real estate valuations, business activity or investor or business confidence; limitations on the availability or increases in the cost of credit and capital; increases in inflation or interest rates; geopolitical conflicts; natural disasters; or a combination of these or other factors. ​ The Company's performance could be negatively affected to the extent there is deterioration in business and economic conditions, including persistent inflation, an inverted yield curve, rising prices, and supply chain issues or labor shortages, which have direct or indirect material adverse impacts on us, our customers, and our counterparties.
Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, declines in housing and real estate valuations, business activity or investor or business confidence; limitations on the availability or increases in the cost of credit and capital; increases in inflation; changes in market interest rates; geopolitical conflicts; natural disasters; or a combination of these or other factors. ​ The Company's performance could be negatively affected to the extent there is deterioration in business and economic conditions, including persistent inflation, an inverted yield curve, rising prices, and supply chain issues or labor shortages, 18 Table of Contents which have direct or indirect material adverse impacts on us, our customers, and our counterparties.
While we have established and regularly test disaster recovery procedures, the occurrence of any such event could have a material adverse effect on our business, operations and financial condition. Additionally, global markets may be adversely affected by natural disasters, the emergence of widespread health emergencies or pandemics, cyberattacks or campaigns, military conflict, terrorism or other geopolitical events.
While we have established and regularly test disaster recovery procedures, the occurrence of any such event could have a material adverse effect on our business, operations and financial condition. Additionally, global markets may be adversely affected by natural disasters, the emergence of widespread health emergencies or pandemics like COVID-19, cyberattacks or campaigns, military conflict, terrorism or other geopolitical events.
If, as a result of an examination, a federal banking agency were to determine that our financial condition, capital resources, asset 16 Table of Contents quality, earnings prospects, management, liquidity or other aspects of any of our operations had become unsatisfactory, or that we were in violation of any law or regulation, we may take a number of different remedial actions as we deem appropriate.
If, as a result of an examination, a federal banking agency were to determine that our financial condition, capital resources, asset quality, earnings prospects, management, liquidity or other aspects of any of our operations had become unsatisfactory, or that we were in violation of any law or regulation, we may take a number of different remedial actions as we deem appropriate.
If the Company, or our relationships with certain customers, vendors or suppliers became the subject of negative publicity, our ability to attract and retain customers and employees, and our financial condition and results of operations, could be adversely impacted. ​ Accounting-Related Risks Changes in our accounting policies or in accounting standards could materially affect how we report our financial results. ​ Our accounting policies are fundamental to understanding our financial results and condition.
If the Company, or our relationships with certain customers, vendors or suppliers became the subject of negative publicity, our ability to attract and retain customers and employees, and our financial condition and results of operations, could be adversely impacted. ​ 20 Table of Contents Accounting-Related Risks Changes in our accounting policies or in accounting standards could materially affect how we report our financial results. ​ Our accounting policies are fundamental to understanding our financial results and condition.
Also, any sudden or prolonged market downturn in the U.S. or 20 Table of Contents abroad, as a result of the above factors or otherwise could result in a decline in revenue and adversely affect our results of operations and financial condition, including capital and liquidity levels. ​ Damage to the Company’s reputation could adversely impact our business. ​ The Company's reputation is important to our success.
Also, any sudden or prolonged market downturn in the U.S. or abroad, as a result of the above factors or otherwise could result in a decline in revenue and adversely affect our results of operations and financial condition, including capital and liquidity levels. ​ Damage to the Company’s reputation could adversely impact our business. ​ The Company's reputation is important to our success.
In addition, in accordance with a memorandum of understanding entered into between the CFPB and U.S. Department of Justice, the two agencies have agreed to coordinate efforts related to enforcing the fair lending laws, which includes information sharing and conducting joint investigations, and have done so on a number of occasions.
In addition, in accordance with a memorandum of understanding entered into between the CFPB and U.S. Department of Justice, the two agencies have agreed to coordinate efforts related to enforcing the fair 16 Table of Contents lending laws, which includes information sharing and conducting joint investigations, and have done so on a number of occasions.
The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on the Company’s business, financial condition and results of operations. ​ Risks Related to Interest Rates Changes in interest rates could affect our profitability.
The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on the Company’s business, financial condition and results of operations. ​ 15 Table of Contents Risks Related to Interest Rates Changes in interest rates could affect our profitability.
Although we take numerous protective measures and otherwise endeavor to protect and maintain the privacy and security of confidential data, these systems may be vulnerable to unauthorized access, computer viruses, other malicious code, cyberattacks, including distributed denial of service attacks, cyber-theft and other events that could have a security impact.
Although we take numerous protective measures and otherwise endeavor to protect and maintain the privacy and security of confidential data, these systems may be vulnerable to unauthorized access, computer viruses, other malicious code, cyberattacks, including distributed denial of service attacks, hacking, social engineering and phishing attacks, cyber-theft and other events that could have a security impact.
The occurrence of any system failures, interruption, or breach of security could damage our reputation and result in a loss of customers and business, thereby subjecting us to additional regulatory scrutiny, or could expose us to litigation and possible financial liability.
The occurrence of any system failures, interruption, or breach of security could damage our reputation and result in a loss of customers and business subject us to additional regulatory scrutiny, and expose us to litigation and possible financial liability.
Declines in real estate values and sales volumes and increased unemployment levels may result in higher than expected loan delinquencies, increases in our 18 Table of Contents levels of nonperforming and classified assets and a decline in demand for our products and services.
Declines in real estate values and sales volumes and increased unemployment levels may result in higher than expected loan delinquencies, increases in our levels of nonperforming and classified assets and a decline in demand for our products and services.
Our ability to earn a profit, like most financial institutions, depends primarily on net interest income, which is the difference between the interest income that we earn on our interest-earning assets, such as loans and investments, and the interest 15 Table of Contents expense that we pay on our interest-bearing liabilities, such as deposits and borrowings.
Our ability to earn a profit, like most financial institutions, depends primarily on net interest income, which is the difference between the interest income that we earn on our interest-earning assets, such as loans and investments, and the interest expense that we pay on our interest-bearing liabilities, such as deposits and borrowings.
At least annually (or more frequently if indicators arise), the Company evaluates goodwill for impairment. If the Company determines goodwill or other intangible assets are impaired, the Company will be required to write down these assets. Any write-down would have a negative effect on the consolidated financial statements. ​
At least annually (or more frequently if indicators arise), the Company evaluates goodwill for impairment. If the Company determines goodwill or other intangible assets are impaired, the Company will be required to write down these assets. Any write-down would have a negative effect on the consolidated financial statements. ​ Item 1B. Unresolved Staff Comments Not applicable. ​
Further, if we declare bankruptcy, dissolve 17 Table of Contents or liquidate, we must satisfy all of our subordinated debenture obligations before we may pay any distributions on our common stock. Strategic Risks Expansion of our branch network may adversely affect our financial results.
Further, if we declare bankruptcy, dissolve or liquidate, we must satisfy all of our subordinated debenture obligations before we may pay any distributions on our common stock. Strategic Risks Expansion of our branch network may adversely affect our financial results. The Bank has in the past and may in the future establish new branch offices.
In addition, if the cash flow from a collateral property is reduced ( e.g. , if leases are not obtained or renewed), the borrower’s ability to repay the loan and the value of the security for the loan may be impaired. ​ 14 Table of Contents Increases to the allowance for credit losses may cause our earnings to decrease.
Finally, if the cash flow from a collateral property is reduced ( e.g. , if leases are not obtained or renewed), the borrower’s ability to repay the loan and the value of the security for the loan may be impaired. ​ 14 Table of Contents If we experience greater credit losses than anticipated, earnings may be adversely impacted.
We have established policies and procedures to prevent or limit the impact of system failures, interruptions, and security breaches, but such events may still occur or may not be adequately addressed if they do occur. In addition, any compromise of our systems could deter customers from using our products and services.
We have established policies and procedures to prevent or limit the impact of system failures, interruptions, and security breaches, but such events may still occur or may not be adequately addressed if they do occur.
Under those circumstances, we may not be able to reinvest those prepayments in assets earning interest rates as high as the rates on those prepaid loans or in investment securities. Changes in interest rates also affect the fair value of the securities portfolio. Generally, the value of securities moves inversely with changes in interest rates.
When interest rates decline, borrowers tend to refinance higher-rate, fixed-rate loans at lower rates. Under those circumstances, we may not be able to reinvest those prepayments in assets earning interest rates as high as the rates on those prepaid loans or in investment securities. Changes in interest rates also affect the fair value of the securities portfolio.
As of December 31, 2022, the securities portfolio totaled $1.54 billion. Management is unable to predict fluctuations of market interest rates, which are affected by many factors, including inflation, recession, unemployment, monetary policy, domestic and international disorder and instability in domestic and foreign financial markets, and investor and consumer demand. We are required to transition from the use of LIBOR.
Management is unable to predict fluctuations of market interest rates, which are affected by many factors, including inflation, recession, unemployment, monetary policy, domestic and international disorder and instability in domestic and foreign financial markets, and investor and consumer demand.
If our regulators were to impose restrictions on the amount of commercial real estate loans we can hold in our portfolio, or require higher capital ratios as a result of the level of commercial real estate loans held, our earnings would be adversely affected.
The Consolidated Company’s non-owner occupied CRE level equaled 538% of total risk-based capital at December 31, 2023. If our regulators were to impose restrictions on the amount of CRE loans we can hold in our portfolio, or require higher capital ratios as a result of the level of CRE loans held, our earnings would be adversely affected.
In a period of rising interest rates, the interest income earned on our assets may not increase as rapidly as the interest paid on our liabilities. A sustained decrease in market interest rates could also adversely affect our earnings. When interest rates decline, borrowers tend to refinance higher-rate, fixed-rate loans at lower rates.
In a period of rising interest rates, the interest income earned on our assets may not increase as rapidly as the interest paid on our liabilities, demand for loan products may decline, and borrower defaults on loan payments may increase. A sustained decrease in market interest rates could also adversely affect our earnings.
Customers may not repay their loans according to the original terms, and the collateral securing the payment of those loans may be insufficient to pay any remaining loan balance. Hence, we may experience significant credit losses, which could have a material adverse effect on our operating results.
As a lender, we are exposed to the risk that customers may not repay their loans according to the original terms, and the collateral securing the payment of those loans may be insufficient to pay any remaining loan balance.
Cyber threats are rapidly evolving, and we may not be able to anticipate or prevent all such attacks. We may incur increasing costs in an effort to minimize these risks and could be held liable for any security breach or loss.
Cyber threats are rapidly evolving, and we may not be able to anticipate or prevent all such attacks.
Removed
The Consolidated Company’s non-owner occupied commercial real estate level equaled 554% of total risk-based capital at December 31, 2022. Including owner-occupied commercial real estate, the Consolidated Company’s ratio of commercial real estate loans to total risk-based capital ratio would be 636% at December 31, 2022.
Added
For example, the New York City Rent Guidelines Board established the maximum rent increase on certain apartments at 3.0% for a one-year lease beginning on or after October 1, 2023 and on or after September 30, 2024, while the overall inflation rate increased at a greater rate. In addition, overhead (including maintenance) expenses often increase significantly during inflationary periods.
Removed
We have material contracts that are indexed to the London Interbank Offered Rate (“LIBOR”). In 2017, the Chief Executive of the United Kingdom Financial Conduct Authority, which regulated LIBOR, announced that the publication of LIBOR would not be guaranteed after 2021. LIBOR will be discontinued after June 2023.
Added
Additionally, at December 31, 2023, our portfolio of commercial and industrial loans, and owner-occupied commercial real estate loans, totaled $2.31 billion, or 21.4% of our total loan portfolio.
Removed
There have been ongoing efforts to establish an alternative reference rate to LIBOR. Regulators, industry groups and certain committees (e.g. the Alternative Reference Rates Committee) have published recommended fallback language for LIBOR-linked financial instruments, identified recommended alternatives for LIBOR (e.g. the Secured Overnight Financing Rate, or “SOFR”), and proposed implementations of the recommended alternatives in floating-rate financial instruments.
Added
We plan to continue to emphasize the origination of these types of loans, which generally expose us to a greater risk of nonpayment and loss than residential real estate loans because repayment of such loans often depends on the successful operations and income stream of the borrowers.
Removed
The March 2022 enactment of the Adjustable Interest Rate (LIBOR) Act and the Federal Reserve’s proposed regulations addressed the discontinuation of LIBOR and established a replacement benchmark rate, based on SOFR, that will automatically apply to agreements that rely on LIBOR and do not have an alternative contractual fallback benchmark.
Added
Additionally, such loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to consumer loans or residential real estate loans. Hence, we may experience significant credit losses, which could have a material adverse effect on our operating results.
Removed
These SOFR-based replacement benchmarks may also apply automatically to contracts with fallback provisions that authorize a particular person to determine the replacement benchmark. We have analyzed our LIBOR-indexed contracts, the significant majority of which already provided for a fallback rate.
Added
Generally, the fair value of securities moves inversely with changes in interest rates. As of December 31, 2023, the carrying value of the securities portfolio totaled $1.48 billion.
Removed
Where the fallback rate is not specified or is no longer considered an economic equivalent to the LIBOR-derived rate previously used, we are working with counterparties to agree upon a replacement rate and have generally selected the rate recommended by the Federal Reserve.
Added
The Company relies on its ability to generate deposits and effectively manage the repayment of its liabilities to ensure that there is adequate liquidity to fund operations. An inability to raise funds through deposits, borrowings, the sale and maturities of loans and securities and other sources could have a substantial negative effect on liquidity.
Removed
While the LIBOR Act and implementing regulations will help to transition legacy LIBOR contracts to a new benchmark rate, the substitution of SOFR for LIBOR may have economic impacts on parties to affected contracts.
Added
The Company’s most important source of funds is its deposits. Deposit balances can decrease when customers perceive alternative investments as providing a better risk adjusted return, which are strongly influenced by such external factors as the direction of interest rates, local and national economic conditions and the availability and attractiveness of alternative investments.
Removed
When LIBOR rates are no longer available and we are required to implement substitute indices for the calculation of interest rates, we may incur expenses in effecting the transition, and may be subject to disputes or litigation with customers over the appropriateness or comparability to LIBOR of the substitute indices, which could have an adverse effect on our results of operations.
Added
Further, the demand for deposits may be reduced due to a variety of factors such as negative trends in the banking sector, the level of and/or composition of our uninsured deposits, demographic patterns, changes in customer preferences, reductions in consumers’ disposable income, the monetary policy of the Federal Reserve or regulatory actions that decrease customer access to particular products.
Removed
Additionally, since alternative rates are calculated differently, payments under contracts referencing new rates will differ from those referencing LIBOR.
Added
If customers move money out of bank deposits and into other investments such as money market funds, the Company would lose a relatively low-cost source of funds, which would increase its funding costs and reduce net interest income.
Removed
There may be changes in the rules or methodologies used to calculate SOFR or other benchmark rates, which may have an adverse effect on the value of or return on financial assets and liabilities that are based on or are linked to those rates.
Added
Any changes made to the rates offered on deposits to remain competitive with other financial institutions may also adversely affect profitability and liquidity. Other primary sources of funds consist of cash flows from operations, maturities and sales of investment securities and/or loans, brokered deposits, borrowings from the FHLB and/or FRB discount window, and unsecured borrowings.
Removed
We are exposed to cyber-security risks, including denial of service, hacking, and identity theft. There have been well-publicized distributed denials of service attacks on large financial services companies.
Added
The Company also may borrow funds from third-party lenders, such as other financial institutions.
Removed
Distributed denial of service attacks are designed to saturate the targeted online network with excessive amounts of network traffic, resulting in slow response times, or in some cases, causing the site to be temporarily unavailable. Hacking and identity theft risks, in particular, could cause serious reputational harm.
Added
The Company’s access to funding sources in amounts adequate to finance or capitalize its activities, or on terms that are acceptable, could be impaired by factors that affect the Company directly or the financial services industry or economy in general, such as disruptions in the financial markets or negative views and expectations about the prospects for the financial services industry, a decrease in the level of the Company’s business activity as a result of a downturn in markets or by one or more adverse regulatory actions against the Company or the financial sector in general.
Removed
Public health emergencies like the COVID-19 outbreak may have an adverse impact on our business and results of operations The COVID-19 pandemic caused significant economic dislocation in the United States. Certain industries were particularly hard-hit, including the travel and hospitality industry, the restaurant industry and the retail industry.
Added
Any decline in available funding could adversely impact the Company’s ability to originate loans, invest in securities, meet expenses, or to fulfill obligations such as meeting deposit withdrawal demands, any of which could have a material adverse impact on its liquidity, business, financial condition and results of operations. ​ Our business may be adversely affected by conditions in the financial markets and economic conditions generally. ​ A favorable business environment is generally characterized by, among other factors, economic growth, efficient capital markets, low inflation, high business and investor confidence, and strong business earnings.
Removed
Additionally, the spread of COVID-19 temporarily caused us to modify our business practices, including placing restrictions on employee travel and implementing remote work practices.
Removed
As a result of the COVID-19 pandemic or any other public health emergency, and related governmental responses to any outbreak, we may be subject to the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, or results of operations: demand for our products and services may decline; if consumer and business activities are restricted, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could increase loan losses; our allowance for credit losses may have to be increased if borrowers experience financial difficulties; a material decrease in net income or a net loss over several quarters could affect our ability to pay cash dividends; cyber security risks may be increased as the result of an increase in the number of employees working remotely; critical services provided by third-party vendors may become unavailable; and the Company may experience unanticipated unavailability or loss of key employees, harming our ability to execute our business strategy.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed1 unchanged
Biggest changeThe Bank’s main office is located at 2200 Montauk Highway in Bridgehampton, New York. ​ As of December 31, 2022, we operated 59 branch locations throughout Greater Long Island and Manhattan, of which 43 were leased and 16 were owned. ​ For additional information on our premises and equipment, see Note 7.
Biggest changeThe Bank’s main office is located at 2200 Montauk Highway in Bridgehampton, New York. ​ As of December 31, 2023, we operated 60 branch locations throughout Greater Long Island and Manhattan, of which 45 were leased and 15 were owned. ​ For additional information on our premises and equipment, see Note 7.
Item 2. Properties The Company’s corporate headquarters is located at 898 Veterans Highway in Hauppauge, New York.
Item 2. Properties The Company’s corporate headquarters is located at 898 Veterans Memorial Highway in Hauppauge, New York.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed1 unchanged
Biggest changeIn the opinion of management, as of December 31, 2022, neither the Holding Company nor the Bank were involved in any actions or proceedings that were likely to have a material adverse impact on the Company’s consolidated financial condition and results of operations. ​ Item 4. Mine Safety Disclosures Not applicable. ​ ​ 22 Table of Contents PART II
Biggest changeIn the opinion of management, as of December 31, 2023, neither the Holding Company nor the Bank were involved in any actions or proceedings that were likely to have a material adverse impact on the Company’s consolidated financial condition and results of operations. ​ Item 4. Mine Safety Disclosures Not applicable. ​ ​ 23 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+1 added−0 removed2 unchanged
Biggest changeThe following performance graph reflects the performance of BDGE prior to the Merger. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, Index 2017 2018 2019 2020 2021 2022 Dime Community Bancshares, Inc. ​ 100.00 74.83 101.57 ​ 76.70 114.50 106.72 S&P SmallCap 600 Banks Index ​ 100.00 89.71 110.21 98.34 132.01 118.97 NASDAQ Composite Index ​ 100.00 97.16 132.81 192.47 235.15 158.65 23 Table of Contents Issuer Purchases of Equity Securities The following table presents information regarding purchases of common stock during the three months ended December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ Total Number of ​ Maximum Number ​ ​ Number ​ Average ​ Shares Purchased ​ of Shares that May ​ ​ of Shares ​ Price Paid ​ as Part of Publicly ​ Yet be Purchased Period Purchased Per Share Announced Programs Under the Programs (1) October 2022 ​ 4,846 ​ $ 31.09 ​ 4,846 ​ 1,607,160 November 2022 1,400 ​ ​ 34.26 1,400 1,605,760 December 2022 2,000 ​ ​ 32.64 2,000 1,603,760 (1) In May 2022, we announced the adoption of a new stock repurchase program of up to 1,948,314 shares, upon the completion of our existing authorized stock repurchase program.
Biggest changeThe following performance graph reflects the performance of BDGE prior to the Merger. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, Index 2018 2019 2020 2021 2022 2023 Dime Community Bancshares, Inc. ​ 100.00 135.73 102.50 ​ 153.01 142.61 126.19 S&P SmallCap 600 Banks Index ​ 100.00 122.85 109.63 147.16 132.62 132.66 NASDAQ Composite Index ​ 100.00 136.69 198.10 242.03 163.28 236.17 24 Table of Contents Issuer Purchases of Equity Securities In May 2022, we announced the adoption of a new stock repurchase program of up to 1,948,314 shares, upon the completion of our existing authorized stock repurchase program.
DCOM Performance Graph Pursuant to the regulations of the SEC, the graph below compares our performance with that of the total return for the NASDAQ® Composite Index and the S&P SmallCap 600 Banks Index from December 31, 2017 through December 31, 2022.
DCOM Performance Graph Pursuant to the regulations of the SEC, the graph below compares our performance with that of the total return for the NASDAQ® Composite Index and the S&P SmallCap 600 Banks Index from December 31, 2018 through December 31, 2023.
At February 16, 2023, we had approximately 1,112 shareholders of record, not including the number of persons or entities holding stock in nominee or the street name through various banks and brokers.
At February 15, 2024, we had approximately 1,117 shareholders of record, not including the number of persons or entities holding stock in nominee or the street name through various banks and brokers.
The stock repurchase program may be suspended, terminated, or modified at any time for any reason, and has no termination date. As of December 31, 2022, there were 1,603,760 shares remaining to be purchased in the program. ​ Item 6. [Reserved]
The stock repurchase program may be suspended, terminated, or modified at any time for any reason, and has no termination date. As of December 31, 2023, there were 1,566,947 shares remaining to be purchased in the program. There were no repurchases of common stock during the quarter ended December 31, 2023.
Added
During the year ended December 31, 2023, the Company repurchased 36,813 shares of common stock, at an average cost of $25.98. ​ ​ Item 6. [Reserved]

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

94 edited+27 added−25 removed56 unchanged
Biggest changeThere are no out-of-period adjustments included in the rate/volume analysis in the following table. ​ 27 Table of Contents Average Balance Sheets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Average ​ ​ Average ​ ​ ​ ​ ​ Yield/ ​ Average ​ ​ ​ ​ ​ Yield/ ​ Average ​ ​ ​ ​ ​ Yield/ ​ Balance Interest ​ Cost Balance Interest ​ Cost Balance Interest ​ Cost ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate loans (1) ​ $ 8,798,852 ​ $ 354,418 ​ 4.03 % $ 7,969,344 ​ $ 298,682 ​ 3.75 % $ 4,916,204 ​ $ 196,144 ​ 3.99 % Commercial and industrial loans (1) ​ 937,542 ​ 51,556 ​ 5.50 ​ 1,494,970 ​ 58,909 ​ 3.94 ​ 535,002 ​ 20,372 ​ 3.81 ​ Other loans (1) ​ 11,493 ​ 627 ​ 5.46 ​ 19,891 ​ 1,425 ​ 7.16 ​ 958 ​ 50 ​ 5.22 ​ Securities ​ 1,687,835 ​ 29,224 ​ 1.73 ​ 1,295,439 ​ 22,634 ​ 1.75 ​ 520,279 ​ 14,159 ​ 2.72 ​ Other short-term investments ​ 248,779 ​ 3,400 ​ 1.37 ​ 574,467 ​ 2,976 ​ 0.52 ​ 150,200 ​ 3,282 ​ 2.19 ​ Total interest-earning assets ​ 11,684,501 ​ ​ 439,225 ​ 3.76 ​ 11,354,111 ​ ​ 384,626 ​ 3.39 ​ 6,122,643 ​ ​ 234,007 ​ 3.82 ​ Non-interest earning assets ​ 782,261 ​ ​ ​ ​ ​ 758,689 ​ ​ ​ 301,608 ​ ​ ​ Total assets ​ $ 12,466,762 ​ ​ ​ ​ ​ ​ ​ $ 12,112,800 ​ ​ ​ $ 6,424,251 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' Equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing checking ​ $ 851,931 ​ $ 3,115 ​ 0.37 % $ 924,122 ​ $ 1,655 ​ 0.18 % $ 220,693 ​ $ 627 ​ 0.28 % Money market ​ 2,971,312 ​ 10,879 ​ 0.37 ​ 3,491,870 ​ 6,521 ​ 0.19 ​ 1,653,452 ​ 9,223 ​ 0.56 ​ Savings ​ 1,815,198 ​ 15,906 ​ 0.88 ​ 1,142,111 ​ 697 ​ 0.06 ​ 400,530 ​ 983 ​ 0.25 ​ Certificates of deposit ​ 926,837 ​ 8,533 ​ 0.92 ​ 1,247,425 ​ 7,654 ​ 0.61 ​ 1,463,613 ​ 22,205 ​ 1.52 ​ Total interest-bearing deposits ​ 6,565,278 ​ 38,433 ​ 0.59 ​ 6,805,528 ​ 16,527 ​ 0.24 ​ 3,738,288 ​ 33,038 ​ 0.88 ​ FHLBNY advances ​ 252,838 ​ ​ 7,062 ​ 2.79 ​ 259,203 ​ ​ 1,963 ​ 0.76 ​ 1,065,356 ​ ​ 17,898 ​ 1.68 ​ Subordinated debt, net ​ ​ 217,753 ​ ​ 10,616 ​ ​ 4.88 ​ ​ 190,128 ​ ​ 8,523 ​ ​ 4.48 ​ ​ 113,974 ​ ​ 5,322 ​ ​ 4.67 ​ Other short-term borrowings ​ ​ 56,030 ​ ​ 1,439 ​ ​ 2.57 ​ ​ 6,282 ​ ​ 4 ​ ​ 0.06 ​ ​ 5,582 ​ ​ 45 ​ ​ 0.81 ​ Total borrowings ​ ​ 526,621 ​ ​ 19,117 ​ ​ 3.63 ​ ​ 455,613 ​ ​ 10,490 ​ ​ 2.30 ​ ​ 1,184,912 ​ ​ 23,265 ​ ​ 1.96 ​ Derivative cash collateral ​ ​ 97,225 ​ ​ 1,812 ​ ​ 1.86 ​ ​ 1,982 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Total interest-bearing liabilities ​ ​ 7,189,124 ​ ​ 59,362 ​ ​ 0.83 ​ ​ 7,263,123 ​ ​ 27,017 ​ ​ 0.37 ​ ​ 4,923,200 ​ ​ 56,303 ​ ​ 1.14 ​ Non-interest-bearing checking ​ ​ 3,890,642 ​ ​ ​ ​ ​ ​ ​ ​ 3,513,354 ​ ​ ​ ​ ​ ​ ​ ​ 691,561 ​ ​ ​ ​ ​ ​ ​ Other non-interest-bearing liabilities ​ ​ 218,194 ​ ​ ​ ​ ​ ​ ​ ​ 175,075 ​ ​ ​ ​ ​ ​ ​ ​ 137,860 ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ 11,297,960 ​ ​ ​ ​ ​ 10,951,552 ​ ​ ​ ​ 5,752,621 ​ ​ ​ Stockholders' equity ​ 1,168,802 ​ ​ ​ ​ ​ 1,161,248 ​ ​ ​ 671,630 ​ ​ ​ Total liabilities and stockholders' equity ​ $ 12,466,762 ​ ​ ​ ​ ​ $ 12,112,800 ​ ​ ​ $ 6,424,251 ​ ​ ​ Net interest income ​ ​ ​ $ 379,863 ​ ​ ​ ​ ​ $ 357,609 ​ ​ ​ ​ $ 177,704 ​ ​ Net interest spread (2) ​ ​ ​ ​ ​ ​ ​ ​ 2.93 % ​ ​ ​ ​ ​ 3.02 % ​ ​ ​ ​ 2.68 % Net interest-earning assets ​ $ 4,495,377 ​ ​ ​ ​ ​ ​ ​ $ 4,090,988 ​ ​ ​ ​ ​ ​ ​ $ 1,199,443 ​ ​ ​ ​ ​ ​ Net interest margin (3) ​ ​ ​ ​ ​ 3.25 % ​ ​ ​ 3.15 % ​ ​ 2.90 % Ratio of interest-earning assets to interest-bearing liabilities ​ ​ ​ ​ ​ ​ ​ ​ 162.53 % ​ ​ ​ ​ ​ 156.33 % ​ ​ ​ ​ 124.36 % Deposits (including non-interest-bearing checking accounts) ​ $ 10,455,920 ​ $ 38,433 ​ 0.37 % $ 10,318,882 ​ $ 16,527 ​ ​ 0.16 % $ 4,429,849 ​ $ 33,038 ​ 0.75 % (1) Amounts are net of deferred origination costs/ (fees) and allowance for credit losses, and include loans held for sale.
Biggest changeThere are no out-of-period adjustments included in the rate/volume analysis in the following table. ​ 28 Table of Contents Average Balance Sheets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ 2023 ​ ​ 2022 ​ ​ 2021 ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Average ​ ​ Average ​ ​ ​ ​ Yield/ ​ ​ Average ​ ​ ​ ​ Yield/ ​ ​ Average ​ ​ ​ ​ Yield/ ​ ​ ​ Balance Interest Cost ​ Balance Interest Cost ​ Balance Interest Cost Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate loans (1) (4) ​ $ 9,708,119 ​ $ 473,425 4.88 % ​ $ 8,798,852 ​ $ 354,418 4.03 % ​ $ 7,969,344 ​ $ 298,682 3.75 % Commercial and industrial loans ("C&I") (1) ​ 1,049,965 ​ 80,670 7.68 ​ ​ 937,542 ​ 51,556 5.50 ​ ​ 1,494,970 ​ 58,909 3.94 ​ Other loans (1) ​ 6,514 ​ 393 6.03 ​ ​ 11,493 ​ 627 5.46 ​ ​ 19,891 ​ 1,425 7.16 ​ Securities ​ 1,640,066 ​ 32,179 1.96 ​ ​ 1,687,835 ​ 29,224 1.73 ​ ​ 1,295,439 ​ 22,634 1.75 ​ Other short-term investments ​ 442,574 ​ 22,693 5.13 ​ ​ 248,779 ​ 3,400 1.37 ​ ​ 574,467 ​ 2,976 0.52 ​ Total interest-earning assets ​ 12,847,238 ​ ​ 609,360 4.74 ​ ​ 11,684,501 ​ ​ 439,225 3.76 ​ ​ 11,354,111 ​ ​ 384,626 3.39 ​ Non-interest earning assets ​ 777,977 ​ ​ ​ ​ ​ 782,261 ​ ​ ​ 758,689 ​ ​ Total assets ​ $ 13,625,215 ​ ​ ​ ​ ​ ​ ​ $ 12,466,762 ​ ​ ​ $ 12,112,800 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' Equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing checking ​ $ 775,904 ​ $ 8,562 ​ 1.10 % ​ $ 851,931 ​ $ 3,115 0.37 % ​ $ 924,122 ​ $ 1,655 0.18 % Money market ​ 2,882,859 ​ 83,950 ​ 2.91 ​ ​ 2,971,312 ​ 10,879 0.37 ​ ​ 3,491,870 ​ 6,521 0.19 ​ Savings ​ 2,311,275 ​ 73,270 ​ 3.17 ​ ​ 1,815,198 ​ 15,906 0.88 ​ ​ 1,142,111 ​ 697 0.06 ​ Certificates of deposit ("CDs") ​ 1,444,554 ​ 53,263 ​ 3.69 ​ ​ 926,837 ​ 8,533 0.92 ​ ​ 1,247,425 ​ 7,654 0.61 ​ Total interest-bearing deposits ​ 7,414,592 ​ 219,045 ​ 2.95 ​ ​ 6,565,278 ​ 38,433 0.59 ​ ​ 6,805,528 ​ 16,527 0.24 ​ FHLBNY advances ​ 1,251,871 ​ ​ 56,140 ​ 4.48 ​ ​ 252,838 ​ ​ 7,062 2.79 ​ ​ 259,203 ​ ​ 1,963 0.76 ​ Subordinated debt, net ​ ​ 200,243 ​ ​ 10,212 ​ 5.10 ​ ​ ​ 217,753 ​ ​ 10,616 ​ 4.88 ​ ​ ​ 190,128 ​ ​ 8,523 ​ 4.48 ​ Other short-term borrowings ​ ​ 3,150 ​ ​ 120 ​ 3.81 ​ ​ ​ 56,030 ​ ​ 1,439 ​ 2.57 ​ ​ ​ 6,282 ​ ​ 4 ​ 0.06 ​ Total borrowings ​ ​ 1,455,264 ​ ​ 66,472 ​ 4.57 ​ ​ ​ 526,621 ​ ​ 19,117 ​ 3.63 ​ ​ ​ 455,613 ​ ​ 10,490 ​ 2.30 ​ Derivative cash collateral ​ ​ 143,735 ​ ​ 7,272 ​ 5.06 ​ ​ ​ 97,225 ​ ​ 1,812 ​ 1.86 ​ ​ ​ 1,982 ​ ​ — ​ — ​ Total interest-bearing liabilities ​ ​ 9,013,591 ​ ​ 292,789 ​ 3.25 ​ ​ ​ 7,189,124 ​ ​ 59,362 ​ 0.83 ​ ​ ​ 7,263,123 ​ ​ 27,017 ​ 0.37 ​ Non-interest-bearing checking ​ ​ 3,126,575 ​ ​ ​ ​ ​ ​ ​ ​ 3,890,642 ​ ​ ​ ​ ​ ​ ​ ​ 3,513,354 ​ ​ ​ ​ ​ ​ Other non-interest-bearing liabilities ​ ​ 270,033 ​ ​ ​ ​ ​ ​ ​ ​ 218,194 ​ ​ ​ ​ ​ ​ ​ ​ 175,075 ​ ​ ​ ​ ​ ​ Total liabilities ​ 12,410,199 ​ ​ ​ ​ ​ ​ 11,297,960 ​ ​ ​ ​ 10,951,552 ​ ​ Stockholders' equity ​ 1,215,016 ​ ​ ​ ​ ​ ​ 1,168,802 ​ ​ ​ 1,161,248 ​ ​ Total liabilities and stockholders' equity ​ $ 13,625,215 ​ ​ ​ ​ ​ ​ $ 12,466,762 ​ ​ ​ $ 12,112,800 ​ ​ Net interest income ​ ​ ​ $ 316,571 ​ ​ ​ ​ ​ ​ $ 379,863 ​ ​ ​ ​ $ 357,609 ​ Net interest spread (2) ​ ​ ​ ​ ​ ​ ​ 1.49 % ​ ​ ​ ​ ​ 2.93 % ​ ​ ​ ​ 3.02 % Net interest-earning assets ​ $ 3,833,647 ​ ​ ​ ​ ​ ​ ​ $ 4,495,377 ​ ​ ​ ​ ​ ​ ​ $ 4,090,988 ​ ​ ​ ​ ​ Net interest margin (3) ​ ​ ​ ​ ​ 2.46 % ​ ​ ​ 3.25 % ​ ​ 3.15 % Ratio of interest-earning assets to interest-bearing liabilities ​ ​ ​ ​ ​ ​ ​ 142.53 % ​ ​ ​ ​ ​ 162.53 % ​ ​ ​ ​ 156.33 % Deposits (including non-interest-bearing checking accounts) ​ $ 10,541,167 ​ $ 219,045 ​ 2.08 % ​ $ 10,455,920 ​ $ 38,433 ​ 0.37 % ​ $ 10,318,882 ​ $ 16,527 0.16 % (1) Amounts are net of deferred origination costs/ (fees) and allowance for credit losses, and include loans held for sale.
Thereafter, periodic letters are mailed and phone calls placed to the borrower until payment is received. When contact is made with the borrower at any time prior to foreclosure, we will attempt to obtain the full payment due or negotiate a repayment schedule with the borrower to avoid foreclosure.
Thereafter, periodic letters are mailed and phone calls are placed to the borrower until payment is received. When contact is made with the borrower at any time prior to foreclosure, we will attempt to obtain the full payment due or negotiate a repayment schedule with the borrower to avoid foreclosure.
The 60 to 89-day delinquency levels fluctuate monthly, and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans. Accruing Loans 90 Days or More Past Due At December 31, 2022, there were no accruing loans 90 days or more past due.
The 60 to 89-day delinquency levels fluctuate monthly, and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans. Accruing Loans 90 Days or More Past Due There were no accruing loans 90 days or more past due at December 31, 2023 or 2022.
The Bank’s primary sources of funding for its lending and investment activities include deposits, loan and MBS payments, investment security principal and interest payments and advances from the FHLBNY.
The Bank’s primary sources of funding for its lending and investment activities include deposits, loan payments, investment security principal and interest payments and advances from the FHLBNY.
As a general matter, these capital requirements are based on the amount and composition of an institution’s assets. At December 31, 2022, each of the Company and the Bank were in compliance with all applicable regulatory capital requirements and the Bank was considered "well capitalized" for all regulatory purposes.
As a general matter, these capital requirements are based on the amount and composition of an institution’s assets. At December 31, 2023, each of the Company and the Bank were in compliance with all applicable regulatory capital requirements and the Bank was considered "well capitalized" for all regulatory purposes.
Issuer Purchases of Equity Securities" for additional information about repurchases of common stock. The Holding Company paid $7.3 million in cash dividends on its preferred stock during the years ended December 31, 2022 and 2021, respectively.
Issuer Purchases of Equity Securities" for additional information about repurchases of common stock. The Holding Company paid $7.3 million in cash dividends on its preferred stock during the years ended December 31, 2023 and 2022, respectively.
Comparison of Operating Results Years Ended December 31, 2022, 2021 and 2020 The Company’s results of operations for the year ended December 31, 2021 include income for the eleven months following the Merger and the results of Legacy Dime for the month ended January 31, 2021.
Comparison of Operating Results For The Years Ended December 31, 2023, 2022 and 2021 The Company’s results of operations for the year ended December 31, 2021, include income for the eleven months following the Merger and the results of Legacy Dime for the month ended January 31, 2021.
The maximum exposure under this reimbursement obligation is $28.0 million. The Bank has pledged $28.0 million of pass-through MBS issued by GSEs as collateral. 40 Table of Contents Recently Issued Accounting Standards For a discussion of the impact of recently issued accounting standards, please see Note 1 to the Company’s consolidated financial statements. ​ ​
The maximum exposure under this reimbursement obligation is $28.0 million. The Bank has pledged $28.0 million of pass-through MBS issued by GSEs as collateral. Recently Issued Accounting Standards For a discussion of the impact of recently issued accounting standards, please see Note 1 to the Company’s Consolidated Financial Statements. ​ ​
The estimates about discount rates, expected future cash flows, market conditions and other future events were subjective and may differ from estimates. 26 Table of Contents Impact on Financial Condition and Results of Operations The estimate of fair values on acquired loans contributed to the recorded goodwill from the Merger.
The estimates about discount rates, expected future cash flows, market conditions and other future events were subjective and may differ from estimates. Impact on Financial Condition and Results of Operations The estimate of fair values on acquired loans contributed to the recorded goodwill from the Merger.
The after-tax cumulative-effect adjustment of $1.7 million was recorded as an increase to retained earnings as of January 1, 2021. ​ A provision of $5.4 million and $6.2 million were recorded during the twelve-month periods ended December 31, 2022 and 2021, respectively.
The after-tax cumulative-effect adjustment of $1.7 million was recorded as an increase to retained earnings as of January 1, 2021. ​ A provision of $2.8 million and $5.4 million were recorded during the twelve-month periods ended December 31, 2023 and 2022, respectively.
The yields include loan fees consisting of amortization of loan origination and commitment fees and certain direct and indirect origination costs, prepayment fees, and late charges that are considered adjustments to yields. Loan fees included in interest income were $3.1 million in 2022, $12.5 million in 2021, and $7.5 million in 2020.
The yields include loan fees consisting of amortization of loan origination and commitment fees and certain direct and indirect origination costs, prepayment fees, and late charges that are considered adjustments to yields. Loan fees included in interest income were $1.5 million in 2023, $3.1 million in 2022, and $12.5 million in 2021.
During 2022, net interest income increased by $22.3 million, provision for credit losses decreased by $0.8 million, and non-interest expense decreased by $44.6 million. These items were partially offset by a non-interest income decrease of $3.9 million and an income tax expense increase of $15.2 million.
During 2022, net interest income increased by $22.3 million, provision for credit losses decreased by $0.8 million, and non-interest expense decreased by $44.6 million, partially offset by a non-interest income decrease of $3.9 million and an income tax expense increase of $15.2 million.
Conversely, if at the time of restructuring the 33 Table of Contents loan is performing (and accruing) it will remain accruing throughout its restructured period, unless the loan subsequently meets any of the criteria for non-accrual status under our policy and agency regulations.
Conversely, if at the time of restructuring the loan is performing (and accruing) it will remain accruing throughout its restructured period, unless the loan subsequently meets any of the criteria for non-accrual status under our policy and agency regulations.
Management has reviewed the following critical accounting estimates and related disclosures with its Audit Committee. Allowance for Credit Losses on Loans Held for Investment Methods and Assumptions Underlying the Estimate On January 1, 2021, we adopted the Current Expected Credit Losses (“CECL”) Standard, which requires that loans held for investment be accounted for under the current expected credit losses model.
Management has reviewed the following critical accounting estimates and related disclosures with its Audit Committee. 25 Table of Contents Allowance for Credit Losses on Loans Held for Investment Methods and Assumptions Underlying the Estimate On January 1, 2021, we adopted the Current Expected Credit Losses (“CECL”) Standard, which requires that loans held for investment be accounted for under the current expected credit losses model.
Our loan servicing policies and procedures require that an automated late notice be sent to a delinquent borrower as soon as possible after a payment is ten days late in the case of multifamily residential, commercial real estate loans, and C&I loans, or fifteen days late in connection with one-to-four family or consumer loans.
Our loan servicing policies and procedures require that an automated late notice be sent to a delinquent borrower as soon as possible after a payment is ten days late in the case of multifamily residential, CRE loans, and C&I loans, or fifteen days late in connection with one-to-four family and consumer loans.
The expected credit loss is measured based on net realizable value, that is, the 25 Table of Contents difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan.
The expected credit loss is measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan.
The following criteria are considered concessions: ● A reduction of interest rate has been made for the remaining term of the loan ● The maturity date of the loan has been extended with a stated interest rate lower than the current market rate for new debt with similar risk ● The outstanding principal amount and/or accrued interest have been reduced ​ In instances in which the interest rate has been reduced, management would not deem the modification a TDR in the event that the reduction in interest rate reflected either a general decline in market interest rates or an effort to maintain a relationship with a borrower who could readily obtain funds from other sources at the current market interest rate, and the terms of the restructured loan are comparable to the terms offered by the Bank to non-troubled debtors. ​ We modified twelve loans in a manner that met the criteria for a TDR during the year ended December 31, 2022.
The following criteria are considered concessions: ● A reduction of interest rate has been made for the remaining term of the loan. ● The maturity date of the loan has been extended with a stated interest rate lower than the current market rate for new debt with similar risk. ● The outstanding principal amount and/or accrued interest have been reduced. ​ In instances in which the interest rate has been reduced, management would not deem the modification a TDR in the event that the reduction in interest rate reflected either a general decline in market interest rates or an effort to maintain a relationship with a borrower who could readily obtain funds from other sources at the current market interest rate, and the terms of the restructured loan are comparable to the terms offered by the Bank to non-troubled debtors. ​ We modified twelve loans in a manner that met the criteria for a TDR during the year ended December 31, 2022. ​ Accrual status for TDRs is determined separately for each TDR in accordance with our policies for determining accrual or non-accrual status.
The $5.4 million provision for credit losses recognized in 2022 was associated with growth in the loan portfolio and a deterioration of forecased economic conditions, offset by a reduction in reserves on individually analyzed loans and unfunded commitments.
The $5.4 million provision for credit losses recognized in 2022 was associated with growth in the loan portfolio and a deterioration of forecasted macroeconomic conditions, offset by a reduction in reserves on individually analyzed loans and unfunded commitments.
In the event that a non-accrual loan is subsequently brought current, it is returned to accrual status once the doubt concerning collectability has been removed and the borrower has demonstrated performance in accordance with the loan terms and conditions for a period of generally at least six months. The C&I portfolio is actively managed by our lenders and underwriters.
In the event that a non-accrual loan is subsequently brought current, it is returned to accrual status once the doubt concerning collectability has been removed and the borrower has demonstrated performance in accordance with the loan terms and has made at least six months of payments. The C&I portfolio is actively managed by our lenders and underwriters.
At December 31, 2021, we had loans totaling $61.2 million that were past due between 30 and 59 days. The 30 to 59-day delinquency levels fluctuate monthly, and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans.
At December 31, 2022, we had loans totaling $23.5 million that were past due between 30 and 59 days. The 30 to 59-day delinquency levels fluctuate monthly, and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans.
Available lines of credit may not be drawn on or may expire prior to funding, in whole or in part, and amounts are not estimates of future cash flows. As of December 31, 2022, the Bank had $271.6 million of firm loan commitments that were accepted by the borrowers.
Available lines of credit may not be drawn on or may expire prior to funding, in whole or in part, and amounts are not estimates of future cash flows. As of December 31, 2023, the Bank had $97.0 million of firm loan commitments that were accepted by the borrowers.
Proceeds from pay downs and calls and maturities of held-to-maturity securities were $31.7 million and $1.4 million for the year ended December 31, 2022 and 2021, respectively. ​ The Company and the Bank are subject to minimum regulatory capital requirements imposed by its primary federal regulator.
Proceeds from pay downs and calls and maturities of held-to-maturity securities were $23.0 million and $31.7 million for the year ended December 31, 2023 and 2022, respectively. ​ The Company and the Bank are subject to minimum regulatory capital requirements imposed by its primary federal regulator.
At December 31, 2022 and 2021, the Bank had recorded servicing right assets ("SRAs") of $3.1 million and $3.8 million, respectively, associated with the sale of loans to third-party institutions in which the Bank retained the servicing of the loan.
At December 31, 2023 and 2022, the Bank had recorded servicing right assets ("SRAs") of $2.9 million and $3.1 million, respectively, associated with the sale of loans to third-party institutions in which the Bank retained the servicing of the loan.
“Federal Home Loan Bank Advances” to our consolidated financial statements for further information. Subordinated debentures totaled $200.3 million at December 31, 2022 and $197.1 million at December 31, 2021. See Note 14. “Subordinated Debentures” to our consolidated financial statements for further information.
“Federal Home Loan Bank Advances” to our Consolidated Financial Statements for further information. Subordinated debentures totaled $200.2 million at December 31, 2023 and $200.3 million at December 31, 2022. See Note 14. “Subordinated Debentures” to our Consolidated Financial Statements for further information.
Loans Delinquent 60 to 89 Days At December 31, 2022, we had loans totaling $0.7 million that were past due between 60 and 89 days. At December 31, 2021, we had loans totaling $12.1 million that were past due between 60 and 89 days.
Loans Delinquent 60 to 89 Days At December 31, 2023, we had loans totaling $1.3 million that were past due between 60 and 89 days. At December 31, 2022, we had loans totaling $0.7 million that were past due between 60 and 89 days.
Statistical regression is utilized to relate historical macro-economic variables to historical credit loss experience of a peer group of banks that operate in and around Dime’s footprint. These models are then utilized to forecast future expected loan losses based on expected future behavior of the same macro-economic variables. Adjustments to the quantitative results are made using qualitative factors.
Statistical regression is utilized to relate historical macro-economic variables to historical credit loss experience of a peer group of banks that operate in and around Dime’s footprint. These models are then utilized to forecast future expected loan losses based on expected future behavior of the same macro-economic variables.
The Bank may also sell or securitize selected multifamily residential, mixed-use or one-to-four family residential real estate loans to private sector secondary market purchasers, and has in the past sold such loans to FNMA and FHLMC. The Company may additionally issue debt or equity under appropriate circumstances.
The Bank may also sell or securitize selected multifamily residential, mixed-use or one-to-four family residential real estate loans to private sector secondary market purchasers, and has in the past sold such loans to FNMA and Federal Home Loan Mortgage Corporation (“FHLMC”). The Company may additionally issue debt or equity under appropriate circumstances.
The Holding Company paid $36.8 million and $39.4 million in cash dividends on its common stock during the years ended December 31, 2022 and 2021, respectively. Contractual Obligations The Bank generally has outstanding at any time borrowings in the form of FHLBNY advances, short-term or overnight borrowings, subordinated debt, as well as customer CDs with fixed contractual interest rates.
The Holding Company paid $37.3 million and $36.8 million in cash dividends on its common stock during the years ended December 31, 2023 and 2022, respectively. 41 Table of Contents Contractual Obligations The Bank generally has outstanding at any time borrowings in the form of FHLBNY advances, short-term or overnight borrowings, subordinated debt, as well as customer CDs with fixed contractual interest rates.
We typically seek to dispose of OREO properties in a timely manner. As a result, OREO properties have generally not warranted subsequent independent appraisals. There was no carrying value of OREO properties on our consolidated balance sheets at December 31, 2022 or December 31, 2021.
We typically seek to dispose of OREO properties in a timely manner. As a result, OREO properties have generally not warranted subsequent independent appraisals. There was no carrying value of OREO properties on our consolidated statements of financial condition at December 31, 2023 or December 31, 2022.
Non-interest income was $38.2 million in 2022, $42.1 million in 2021, and $21.3 million in 2020. During 2022, non-interest income decreased $3.9 million from 2021, due primarily to a decrease in gains on the sales of SBA PPP loans, and a decrease in gain on sale of residential loans and other non-interest income of $1.3 million each.
During 2022, non-interest income decreased $3.9 million from 2021, due primarily to a decrease in gain on the sales of SBA PPP loans, and a decrease in gain on sale of residential loans and other non-interest income of $1.3 million each.
Non-interest expense was $200.7 million in 2022, $245.3 million in 2021, and $117.8 million in 2020. During 2022, non-interest expense decreased $44.6 million from 2021, primarily due to not recognizing any merger expenses and transaction costs and branch restructuring costs in 2022 (versus $44.8 million in merger expenses and transaction costs and $5.1 million of branch restructuring costs in 2021).
During 2022, non-interest expense decreased $44.6 million from 2021, primarily due to not recognizing any merger expenses and transaction costs and branch restructuring costs in 2022 (versus $44.8 million in merger expenses and transaction costs and $5.1 million of branch restructuring costs in 2021).
At December 31, 2022, brokered deposits totaled $538.9 million, which included purchased CDs from the CDARS program, purchased MMAs from the ICS program and purchased CDs through a broker. At December 31, 2021, brokered deposits totaled $200.0 million, which included purchased MMAs from the ICS program.
At December 31, 2023, brokered deposits totaled $898.7 million, which included purchased CDs from the CDARS program, purchased MMAs from the ICS program and purchased CDs through a broker. At December 31, 2022, brokered deposits totaled $538.9 million, which included purchased CDs from the CDARS program, purchased MMAs from the ICS program and purchased CDs through a broker.
(2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average interest-earning assets.
The increase in CDs during the current period was primarily due to a $294.1 million increase in brokered CDs. The Bank increased its outstanding FHLBNY advances by $1.11 billion during the year ended December 31, 2022, compared to a $1.18 billion decrease during the year ended December 31, 2021. See Note 13.
The increase in CDs during the current period was primarily due to a $359.9 million increase in brokered CDs. The Bank increased its outstanding FHLBNY advances by $182.0 million during the year ended December 31, 2023, compared to a $1.11 billion increase during the year ended December 31, 2022. See Note 13.
We did not recognize any provisions for losses on OREO properties during the years ended December 31, 2022, 2021 or 2020. Past Due Loans Loans Delinquent 30 to 59 Days At December 31, 2022, we had loans totaling $23.5 million that were past due between 30 and 59 days.
We did not recognize any provisions for losses on OREO properties during the years ended December 31, 2023, 2022 or 2021. 35 Table of Contents Past Due Loans Loans Delinquent 30 to 59 Days At December 31, 2023, we had loans totaling $12.0 million that were past due between 30 and 59 days.
The Holding Company repurchased 1,431,241 shares of its common stock during the year ended December 31, 2022. The Holding Company repurchased 1,755,061 shares of its common stock during the year ended December 31, 2021. As of December 31, 2022, up to 1,603,760 shares remained available for purchase under the authorized share repurchase programs. See "Part II - Item 5.
The Holding Company repurchased 36,813 shares of its common stock during the year ended December 31, 2023. The Holding Company repurchased 1,431,241 shares of its common stock during the year ended December 31, 2022. As of December 31, 2023, up to 1,566,947 shares remained available for purchase under the authorized share repurchase programs. See "Part II - Item 5.
Net interest income was $379.9 million in 2022, $357.6 million in 2021, and $177.7 million in 2020. Average interest-earning assets were $11.68 billion in 2022, $11.35 billion in 2021 and $6.12 billion in 2020. Net interest margin was 3.25% in 2022, 3.15% in 2021, and 2.90% in 2020. ​ Interest Income.
Net interest income was $316.6 million in 2023, $379.9 million in 2022, and $357.6 million in 2021. Average interest-earning assets were $12.85 billion in 2023, $11.68 billion in 2022 and $11.35 billion in 2021. Net interest margin was 2.46% in 2023, 3.25% in 2022, and 3.15% in 2021. ​ Interest Income.
Interest income was $439.2 million in 2022, $384.6 million in 2021, and $234.0 million in 2020. During 2022, interest income increased $54.6 million from 2021, primarily reflecting increases in interest income of $55.7 million on real estate loans, and $6.6 million on securities.
During 2022, interest income increased $54.6 million from 2021, primarily reflecting increases in interest income of $55.7 million on real estate loans and $6.6 million on securities.
These items were partially offset by a non-interest expense increase of $127.5 million and an income tax expense increase of $31.5 million. ​ The discussion of net interest income for the years ended December 31, 2022, 2021, and 2020 should be read in conjunction with the following tables, which set forth certain information related to the consolidated statements of income for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated.
During 2021, net interest income increased by $179.9 million, provision for credit losses decreased by $20.0 million and non-interest income increased $20.8 million, partially offset by a non-interest expense increase of $127.5 million and an income tax expense increase of $31.5 million. ​ The discussion of net interest income for the years ended December 31, 2023, 2022, and 2021 should be read in conjunction with the following tables, which set forth certain information related to the consolidated statements of operations for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated.
The Company recognized a provision for credit losses of $5.4 million in 2022, $6.2 million in 2021 and $26.2 million in 2020. The $5.4 million provision for credit losses recognized in 2022 was associated with growth in the loan portfolio and a deterioration of forecasted macroeconomic conditions, offset by a reduction in reserves on individually analyzed loans and unfunded commitments.
The $2.8 million provision for credit losses recognized in 2023 was primarily associated with provisioning for individually analyzed loans. The $5.4 million provision for credit losses recognized in 2022 was associated with growth in the loan portfolio and a deterioration of forecasted economic conditions, offset by a reduction in reserves on individually analyzed loans and unfunded commitments.
Accordingly, the Company’s historical operating results as of and for periods before February 1, 2021, including the year ended December 31, 2020, as presented and discussed in this Annual Report on Form 10-K, do not include the historical results of Bridge. General. Net income was $152.6 million in 2022, compared to $104.0 million in 2021, and $42.3 million in 2020.
The Company’s historical operating results as of and for periods before February 1, 2021, as presented and discussed in this Annual Report on Form 10-K, do not include the historical results of Bridge. 27 Table of Contents General. Net income was $96.1 million in 2023, compared to $152.6 million in 2022, and $104.0 million in 2021.
Offsetting these declines was an increase in BOLI income of $3.3 million and no loss on termination of derivatives in 2022 (versus a $16.5 million loss on termination of derivatives in 2021).
Offsetting these declines was an increase in BOLI income of $3.3 million and no loss on termination of derivatives in 2022 (versus a $16.5 million loss on termination of derivatives in 2021). Non-Interest Expense. Non-interest expense was $213.1 million in 2023, $200.7 million in 2022, and $245.3 million in 2021.
The increased interest income on real estate loans was primarily due to growth of $829.5 million in the average balances, and a 28-basis point increase in yield during the period due to the rising interest rate environment.
The increased interest income on real estate loans was primarily due to an increase of $829.5 million in the average balance of real estate loans and a 28-basis point increase in the yield of such loans.
Allowance for Credit Losses On January 1, 2021, the Company adopted ASU No. 2016-13 "Financial Instruments – Credit Losses (Topic 326)". ASU 2016-13 was effective for the Company as of January 1, 2020.
Any increases or reductions in this reserve are recognized in provision for credit losses. Allowance for Credit Losses On January 1, 2021, the Company adopted ASU No. 2016-13 "Financial Instruments – Credit Losses (Topic 326)". ASU 2016-13 was effective for the Company as of January 1, 2020.
See Note 4 to our consolidated financial statements for a discussion of evaluation for impaired securities. Monitoring and Collection of Delinquent Loans Our management reviews delinquent loans on a monthly basis and reports to our Board of Directors at each regularly scheduled Board meeting regarding the status of all non-performing and otherwise delinquent loans in our loan portfolio.
Monitoring and Collection of Delinquent Loans Our management reviews delinquent loans on a monthly basis and reports to our Board of Directors or Committees of the Board of the Directors at each regularly scheduled Board or Committee meeting regarding the status of all non-performing and otherwise delinquent loans in our loan portfolio.
The provision for credit losses recognized in 2022 and 2021 was calculated in accordance with the CECL Standard adopted by the Company on January 1, 2021. The provision for credit losses recognized in 2020 was calculated in accordance with prior GAAP, in accordance with ASC 310. ​ Non-Interest Income.
The provision for credit losses recognized in 2023, 2022 and 2021 was calculated in accordance with the CECL Standard adopted by the Company on January 1, 2021. ​ Non-Interest Income. Non-interest income was $36.2 million in 2023, $38.2 million in 2022, and $42.1 million in 2021.
Assets totaled $13.19 billion at December 31, 2022, $1.13 billion above their level at December 31, 2021, primarily due to an increase in the loan portfolio of $1.32 billion, partially offset by a decrease in cash and due from banks of $224.4 million, and a decrease in total securities of $206.6 million.
Assets totaled $13.64 billion at December 31, 2023, $446.1 million above their level at December 31, 2022, primarily due to an increase in cash and due from banks of $288.3 million, an increase in the loan portfolio of $218.4 31 Table of Contents million, partially offset by a decrease in total securities of $55.5 million, and a decrease in derivative assets of $32.4 million.
Income tax expense increased $31.5 million during 2021 compared to 2020, primarily as a result of $93.2 million of higher pre-tax income during 2021. ​ The Company’s consolidated tax rate was 28.0%, 29.8% and 23.0% in 2022, 2021, and 2020, respectively.
Income tax expense increased $15.2 million during 2022 compared to 2021, primarily as a result of $63.7 million of higher pre-tax income during 2022. ​ The Company’s consolidated tax rate was 29.8%, 28.0% and 29.8% in 2023, 2022, and 2021, respectively. ​ Comparison of Financial Condition at December 31, 2023 and December 31, 2022 Assets.
Stockholders’ equity decreased $23.0 million during the year ended December 31, 2022 to $1.17 billion at period end, primarily due to an increase in accumulated other comprehensive loss of $88.2 million, repurchases of shares of common stock of $46.8 million, common stock dividends of $37.2 million and preferred stock dividends of $7.3 million, offset in part by net income for the period of $152.6 million.
Stockholders’ equity increased $56.6 million during the year ended December 31, 2023 to $1.23 billion at period end, primarily due to net income for the period of $96.1 million, a decrease in accumulated other comprehensive loss of $2.8 million, offset in part by common stock dividends of $38.6 million, preferred stock dividends of $7.3 million and repurchases of shares of common stock of $947 thousand.
In the event that the Bank should require funds beyond its ability or desire to generate them internally, an additional source of funds is available through its borrowing line at the FHLBNY or borrowing capacity through AFX and lines of credit 39 Table of Contents with unaffiliated correspondent banks.
In the event that the Bank should require funds beyond its ability or desire to generate them internally, additional sources of liquidity are available through its collateralized borrowing lines at the FHLBNY and the FRB, as well as unsecured borrowing capacity through the AFX and lines of credit with unaffiliated correspondent banks.
The following table presents our allowance for credit losses allocated by loan type and the percent of each to total loans at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ December 31, 2021 ​ December 31, 2020 ​ ​ ​ ​ ​ ​ Percent ​ ​ ​ ​ Percent ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ ​ of Loans ​ ​ ​ ​ of Loans ​ ​ ​ ​ of Loans ​ ​ ​ ​ ​ ​ in Each ​ ​ ​ ​ in Each ​ ​ ​ ​ in Each ​ ​ ​ ​ ​ ​ Category ​ ​ ​ ​ Category ​ ​ ​ ​ Category ​ ​ ​ Allocated ​ to Total ​ Allocated ​ to Total ​ Allocated ​ to Total ​ ​ ​ Amount Loans Amount Loans Amount Loans (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ One-to-four family residential and cooperative/condominium apartment ​ $ 5,969 ​ 7.32 % $ 5,932 ​ 7.24 % $ 644 ​ 3.29 % Multifamily residential and residential mixed-use ​ 8,360 ​ 38.11 ​ ​ 7,816 ​ 36.31 ​ ​ 17,016 ​ 49.07 ​ CRE ​ 27,329 ​ 42.19 ​ ​ 29,166 ​ 42.68 ​ ​ 9,059 ​ 33.41 ​ Acquisition, development, and construction ​ 1,723 ​ 2.17 ​ ​ 4,857 ​ 3.49 ​ ​ 1,993 ​ 2.78 ​ C&I ​ 39,853 ​ 10.14 ​ ​ 35,331 ​ 10.10 ​ ​ 12,737 ​ 11.41 ​ Other loans ​ 273 ​ 0.07 ​ ​ 751 ​ 0.18 ​ ​ 12 ​ 0.04 ​ Total ​ $ 83,507 100.00 % $ 83,853 100.00 % $ 41,461 100.00 % ​ 35 Table of Contents The following table sets forth information about our allowance for credit losses at or for the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ (Dollars in thousands) Total loans outstanding at end of period (1) ​ $ 10,566,831 ​ $ 9,244,661 ​ $ 5,622,044 ​ Average total loans outstanding during the period (2) ​ 9,747,887 ​ 9,484,205 ​ 5,452,164 ​ Allowance for credit losses balance at end of period ​ 83,507 ​ 83,853 ​ 41,461 ​ Allowance for credit losses to total loans at end of period ​ 0.79 % 0.91 % 0.74 % Non-performing loans to total loans at end of period ​ ​ 0.32 ​ ​ 0.44 ​ ​ 0.37 ​ Allowance for credit losses to total non-performing loans at end of period ​ 243.91 ​ 208.04 ​ 231.26 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ratio of net charge-offs to average loans outstanding during the period: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One-to-four family residential and cooperative/condominium apartment ​ ​ — % ​ (0.01) % ​ 0.01 % Multifamily residential and residential mixed-use ​ ​ — ​ ​ 0.01 ​ ​ 0.10 ​ CRE ​ ​ — ​ ​ 0.09 ​ ​ — ​ Acquisition, development, and construction ​ ​ — ​ ​ — ​ ​ — ​ C&I ​ ​ 0.77 ​ ​ 0.33 ​ ​ 1.95 ​ Other loans ​ ​ 0.42 ​ ​ 3.89 ​ ​ 0.44 ​ Total ​ ​ 0.07 ​ ​ 0.10 ​ ​ 0.24 ​ (1) Total loans represent gross loans (excluding loans held for sale), inclusive of deferred fees/costs and premiums/discounts.
For further discussion of the allowance for credit losses and related activity during the years ended December 31, 2023, 2022 and 2021, please see Note 5 to the Consolidated Financial Statements. 36 Table of Contents The following table presents our allowance for credit losses allocated by loan type and the percent of each to total loans at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ 2023 ​ ​ ​ 2022 ​ ​ 2021 ​ ​ ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ ​ of Loans ​ ​ ​ ​ ​ of Loans ​ ​ ​ ​ ​ of Loans ​ ​ ​ ​ ​ ​ in Each ​ ​ ​ ​ ​ in Each ​ ​ ​ ​ ​ in Each ​ ​ ​ ​ ​ ​ Category ​ ​ ​ ​ ​ Category ​ ​ ​ ​ ​ Category ​ ​ ​ Allocated ​ to Total ​ ​ Allocated ​ to Total ​ ​ Allocated ​ to Total ​ (Dollars in thousands) ​ Amount Loans ​ Amount Loans ​ Amount Loans One-to-four family residential and cooperative/condominium apartment ​ $ 6,813 ​ 8.24 % ​ $ 5,969 ​ 7.32 % ​ $ 5,932 ​ 7.24 % Multifamily residential and residential mixed-use ​ ​ 7,237 ​ 37.31 ​ ​ ​ 8,360 ​ 38.11 ​ ​ ​ 7,816 ​ 36.31 ​ CRE ​ 26,608 ​ 42.92 ​ ​ ​ 27,329 ​ 42.19 ​ ​ ​ 29,166 ​ 42.68 ​ ADC ​ 1,989 ​ 1.57 ​ ​ ​ 1,723 ​ 2.17 ​ ​ ​ 4,857 ​ 3.49 ​ C&I ​ 28,977 ​ 9.91 ​ ​ ​ 39,853 ​ 10.14 ​ ​ ​ 35,331 ​ 10.10 ​ Other loans ​ 119 ​ 0.05 ​ ​ ​ 273 ​ 0.07 ​ ​ ​ 751 ​ 0.18 ​ Total ​ $ 71,743 100.00 % ​ $ 83,507 100.00 % ​ $ 83,853 100.00 % ​ The following table sets forth information about our allowance for credit losses at or for the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or for the Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Total loans outstanding at end of period (1) ​ $ 10,766,837 ​ $ 10,566,831 ​ $ 9,244,661 ​ Average total loans outstanding during the period (2) ​ 10,764,598 ​ 9,747,887 ​ 9,484,205 ​ Allowance for credit losses balance at end of period ​ 71,743 ​ 83,507 ​ 83,853 ​ Allowance for credit losses to total loans at end of period ​ 0.67 % 0.79 % 0.91 % Non-performing loans to total loans at end of period ​ ​ 0.27 ​ ​ 0.32 ​ ​ 0.37 ​ Allowance for credit losses to total non-performing loans at end of period ​ 246.55 ​ 243.91 ​ 231.26 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ratio of net charge-offs to average loans outstanding during the period: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One-to-four family residential and cooperative/condominium apartment ​ ​ — % ​ — % ​ (0.01) % Multifamily residential and residential mixed-use ​ ​ — ​ ​ — ​ ​ 0.01 ​ CRE ​ ​ — ​ ​ — ​ ​ 0.09 ​ ADC ​ ​ — ​ ​ — ​ ​ — ​ C&I ​ ​ 1.37 ​ ​ 0.77 ​ ​ 0.33 ​ Other loans ​ ​ 4.34 ​ ​ 0.42 ​ ​ 3.89 ​ Total ​ ​ 0.14 ​ ​ 0.07 ​ ​ 0.10 ​ (1) Total loans represent gross loans (excluding loans held for sale), fair value hedge basis point adjustments, inclusive of deferred fees/costs and premiums/discounts.
The availability of funds changes daily. The Bank utilizes repurchase agreements as part of its borrowing policy to add liquidity. Repurchase agreements represent funds received from customers, generally on an overnight basis, which are collateralized by investment securities. As of December 31, 2022, the Bank’s repurchase agreements totaled $1.4 million, included in other short-term borrowings on the consolidated balance sheets.
Repurchase agreements represent funds received from customers, generally on an overnight basis, which are collateralized by investment securities. As of December 31, 2023 the Bank did not have any repurchase agreements. As of December 31, 2022, the Bank’s repurchase agreements totaled $1.4 million, included in other short-term borrowings on the consolidated statements of financial condition.
Within deposits, core deposits ( i.e., non-CDs) decreased $466.7 million during the year ended December 31, 2022 and increased $6.40 billion during the year ended December 31. 2021. CDs increased $262.1 million during the year ended December 31, 2022 compared to a decrease of $469.4 million during the year ended December 31, 2021.
Within deposits, core deposits ( i.e., non-CDs) decreased $216.1 million during the year ended December 31, 2023 and decreased $466.7 million during the year ended December 31, 2022. CDs increased $492.3 million during the year ended December 31, 2023 compared to an increase of 40 Table of Contents $262.1 million during the year ended December 31, 2022.
When warranted, loans reaching a Substandard rating could be reassigned to the Workout Group for direct handling. Non-accrual Loans Within our held-for-investment loan portfolio, non-accrual loans totaled $34.2 million at December 31, 2022 and $40.3 million at December 31, 2021. TDRs We are required to recognize loans for which certain modifications or concessions have been made as TDRs.
When warranted, loans reaching a Substandard rating could be reassigned to the Workout Group for direct handling. Non-accrual Loans Within our held-for-investment loan portfolio, non-accrual loans totaled $29.1 million at December 31, 2023 and $34.2 million at December 31, 2022.
The increased interest income from securities was primarily due to the increase in the average balances of $392.4 million, offset in part by a 2-basis point decrease in the yield.
The increased interest income from securities was primarily due to an increase of $392.4 million in the average balance of securities, offset by a 2-basis point decrease in the yield of such securities. Interest Expense. Interest expense was $292.8 million in 2023, $59.4 million in 2022, and $27.0 million in 2021.
The Bank had $1.13 billion of FHLBNY advances outstanding at December 31, 2022, and $25.0 million at December 31, 2021. The Bank maintained sufficient collateral, as defined by the FHLBNY (principally in the form of real estate loans), to secure such advances.
The Bank maintained sufficient collateral, as defined by the FHLBNY (principally in the form of real estate loans), to secure such advances. The Company had no outstanding securities sold under agreements to repurchase (“repurchase agreements”) at December 31, 2023. The Company had $1.4 million outstanding of securities sold under agreements to repurchase at December 31, 2022.
The Bank outsources the servicing of a portion of our one-to-four family mortgage loan portfolio to an unrelated third-party under a sub-servicing agreement. Fees paid under the sub-servicing agreement are reported as a component of other non-interest expense in the consolidated statements of income.
The Bank outsources the servicing of a portion of our one-to-four family mortgage loan portfolio to an unrelated third-party under a sub-servicing agreement.
The weighted average duration of our securities held-to-maturity approximated 6.1 years as of December 31, 2022 when giving consideration to anticipated repayments or possible prepayments, which is significantly less than their weighted average maturity. ​ The following table presents the weighted average contractual maturity of our securities held-to-maturity: ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2022 Weighted average contractual maturity (years) - Held-to-maturity: ​ ​ Agency notes ​ 7.26 Corporate securities ​ 9.59 Pass-through MBS issued by GSEs and agency CMOs ​ 22.16 ​ 37 Table of Contents Sources of Funds ​ Deposits ​ The following table presents our deposit accounts and the related weighted average interest rates at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ December 31, 2021 ​ December 31, 2020 ​ ​ ​ ​ Percent ​ ​ ​ Percent ​ ​ ​ Percent ​ ​ ​ ​ ​ ​ of ​ Weighted ​ ​ ​ ​ Of ​ Weighted ​ ​ ​ ​ Of ​ Weighted ​ ​ ​ ​ ​ Total ​ Average ​ ​ ​ ​ Total ​ Average ​ ​ ​ ​ Total ​ Average ​ Amount Deposits Rate Amount Deposits Rate Amount ​ Deposits ​ Rate ​ (Dollars in Thousands) ​ Savings accounts ​ $ 2,260,101 22.0 % 2.24 % $ 1,158,040 11.1 % 0.03 % $ 414,809 9.2 % 0.12 % CDs ​ 1,115,364 10.9 2.25 ​ 853,242 8.2 0.58 ​ 1,322,638 29.2 0.84 ​ Money market accounts ​ 2,532,270 24.7 1.50 ​ 3,621,552 34.6 0.07 ​ 1,716,624 37.9 0.24 ​ Interest-bearing checking accounts ​ 827,454 8.1 1.01 ​ 905,717 8.7 0.18 ​ 290,300 6.4 0.10 ​ Non-interest-bearing checking accounts ​ 3,519,218 34.3 — ​ 3,920,423 37.5 — ​ 780,751 17.3 — ​ Totals ​ $ 10,254,407 100.00 % 1.19 % $ 10,458,974 100.00 % 0.09 % $ 4,525,122 100.00 % 0.36 % ​ The weighted average maturity of our CDs at December 31, 2022 was 7.6 months, compared to 7.7 months at December 31, 2021. ​ As of December 31, 2022 and 2021, the portion of deposit accounts in excess of the $250,000 FDIC insurance limit was $5.73 billion and $5.83 billion, respectively. ​ The following table sets forth the amount of time deposits in uninsured accounts by maturity, all of which are CDs: ​ ​ ​ ​ ​ (In thousands) ​ December 31, 2022 Maturity Period ​ ​ ​ Three months or less ​ $ 132,925 Over three through six months ​ ​ 241,143 Over six through twelve months ​ ​ 125,971 Over twelve months ​ ​ 41,901 Total ​ $ 541,940 ​ As of December 31, 2022, the portion of uninsured time deposits in excess of the $250,000 FDIC insurance limit was $420.4 million. ​ Our Board of Directors authorized the Bank to accept brokered deposits up to an aggregate limit of 10.0% of total assets.
The weighted average duration of our securities held-to-maturity approximated 5.7 years as of December 31, 2023 when giving consideration to anticipated repayments or possible prepayments, which is significantly less than their weighted average maturity. ​ 38 Table of Contents The following table presents the weighted average contractual maturity of our securities held-to-maturity: ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2023 Agency notes ​ 6.26 Corporate securities ​ 8.59 Pass-through MBS issued by GSEs and agency CMOs ​ 21.21 ​ Sources of Funds ​ Deposits ​ The following table presents our deposit accounts and the related weighted average interest rates at the dates indicated (Dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ December 31, 2022 ​ ​ December 31, 2021 ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ ​ ​ of ​ ​ Weighted ​ ​ ​ ​ ​ Of ​ ​ Weighted ​ ​ ​ ​ ​ Of ​ ​ Weighted ​ ​ ​ ​ ​ Total ​ ​ Average ​ ​ ​ ​ ​ Total ​ ​ Average ​ ​ ​ ​ ​ Total ​ ​ Average ​ Amount Deposits ​ Rate ​ Amount Deposits ​ Rate ​ Amount ​ Deposits ​ ​ Rate Savings accounts ​ $ 2,335,490 22.2 % ​ 3.67 % ​ $ 2,260,101 22.0 % ​ 2.24 % ​ $ 1,158,040 11.1 % ​ 0.03 % CDs ​ 1,607,683 15.3 ​ 4.43 ​ ​ 1,115,364 10.9 ​ 2.25 ​ ​ 853,242 8.2 ​ 0.58 ​ Money market accounts ​ 3,125,996 29.6 ​ 3.46 ​ ​ 2,532,270 24.7 ​ 1.50 ​ ​ 3,621,552 34.6 ​ 0.07 ​ Interest-bearing checking accounts ​ 515,987 4.9 ​ 0.77 ​ ​ 827,454 8.1 ​ 1.01 ​ ​ 905,717 8.7 ​ 0.18 ​ Non-interest-bearing checking accounts ​ 2,945,499 28.0 ​ — ​ ​ 3,519,218 34.3 ​ — ​ ​ 3,920,423 37.5 ​ — ​ Totals ​ $ 10,530,655 100.00 % ​ 2.56 % ​ $ 10,254,407 100.00 % ​ 1.19 % ​ $ 10,458,974 100.00 % ​ 0.09 % ​ The weighted average maturity of our CDs at December 31, 2023 was 5.1 months, compared to 7.6 months at December 31, 2022. ​ Non-insured deposits (excluding collateralized deposits and deposits with pass through insurance) represented 28.9% and 31.0% of total deposits as of December 31, 2023 and 2022, respectively.
In addition, various regulatory agencies, as an integral part of the examination process, periodically review the allowance for credit losses. Such agencies may require the Bank to recognize adjustments to the allowance based on their judgments of the information available to them at the time of their examination.
Such agencies may require the Bank to recognize adjustments to the allowance based on their judgments of the information available to them at the time of their examination.
Such non-accrual determination practices are applied consistently to all loans regardless of their internal classification or designation.
Such non-accrual 33 Table of Contents determination practices are applied consistently to all loans regardless of their internal classification or designation. Upon entering non-accrual status, we reverse all outstanding accrued interest receivable.
The increased interest income on real estate loans was due to an increase of $3.05 billion in the average balance of such loans in the period, offset in part by a 24-basis point decrease in the yield.
The increased interest income on real estate loans was primarily due to an 85-basis point increase in yield and an increase of $909.3 million in the average balances of such loans in the period.
At December 31, 2020, brokered deposits totaled $343.0 million, which included purchased CDs from the CDARS program, purchased MMAs from the ICS program and purchased CDs through a broker. Borrowings The Bank’s total borrowing line with FHLBNY equaled $4.13 billion at December 31, 2022.
At December 31, 2021, brokered deposits totaled $200.0 million, which included purchased MMAs from the ICS program. 39 Table of Contents Borrowings The Bank’s total borrowing line with FHLBNY equaled $4.09 billion at December 31, 2023. The Bank had $1.31 billion of FHLBNY advances outstanding at December 31, 2023, and $1.13 billion at December 31, 2022.
The Company had $1.9 million outstanding of securities sold under agreements to repurchase at December 31, 2021. 38 Table of Contents Liquidity and Capital Resources The Board of Directors of the Bank has approved a liquidity policy that it reviews and updates at least annually. Senior management is responsible for implementing the policy.
Liquidity and Capital Resources The Board of Directors of the Bank has approved a liquidity policy that it reviews and updates at least annually. Senior management is responsible for implementing the policy.
Impact on Financial Condition and Results of Operations If our assumptions prove to be incorrect, the allowance for credit losses may not be sufficient to cover expected losses in the loan portfolio, resulting in additions to the allowance. Future additions or reductions to the allowance may be necessary based on changes in economic, market or other conditions.
Bank regulators periodically review our allowance for credit losses and may require us to increase our provision for credit losses or loan charge-offs. 26 Table of Contents Impact on Financial Condition and Results of Operations If our assumptions prove to be incorrect, the allowance for credit losses may not be sufficient to cover expected losses in the loan portfolio, resulting in additions to the allowance.
The increase in interest expense on savings accounts was primarily due to increased rates offered on savings accounts and, an increase of $673.1 million in the average balances of such accounts. The increase in interest expense on FHLB advances was primarily due to the increased cost of wholesale borrowings.
The increase in interest expense on savings accounts was primarily due to an 82-basis point increase in yield on savings account and an increase of $673.1 million in the average balances of such deposits in the period.
Proceeds from sales of available-for-sale securities totaled $138.1 million during the year ended December 31, 2021. Purchases of available-for-sale securities totaled $39.2 million and $1.10 billion during the years ended December 31, 2022 and 2021, respectively.
Purchases of available-for-sale securities totaled $86.1 million and $39.2 million during the years ended December 31, 2023 and 2022, respectively. Proceeds from pay downs and calls and maturities of available-for-sale securities were $79.9 million and $165.1 million for the years ended December 31, 2023 and 2022, respectively.
Purchases of held-to-maturity securities totaled $63.2 million and $40.2 million during the year ended December 31, 2022 and 2021, respectively.
The Bank did not have proceeds from sales of held-to-maturity securities during the years ended December 31, 2023 or 2022. Purchases of held-to-maturity securities totaled $28.3 million and $63.2 million during the year ended December 31, 2023 and 2022, respectively.
During 2021, non-interest income increased $20.8 million from 2020, due primarily to a gain on the sale of SBA PPP loans of $20.7 million, an increase in service charges and other fees of $10.4 million, and an increase in other non-interest income of $3.0 million, partially offset by an increase in loss on termination of derivatives of $9.9 million, a decrease in loan level derivative income of $6.0 million, and a decrease in net gain on sale of securities and other assets of $2.9 million. ​ Non-Interest Expense.
During 2023, non-interest income decreased $2.0 million from 2022, primarily due to a decrease of $2.9 million from net gain on sale of securities and other assets, offset by a $3.4 million increase in loan level derivative income.
Loan Portfolio Composition The following table presents an analysis of outstanding loans by loan type, excluding loans held for sale, net of unearned discounts and premiums and deferred origination fees and costs, at the dates presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ December 31, 2022 ​ ​ December 31, 2021 ​ December 31, 2020 ​ One-to-four family, including condominium and cooperative apartment ​ $ 773,321 ​ 7.3 % ​ $ 669,282 7.2 % ​ $ 184,989 3.3 % Multifamily residential and residential mixed-use ​ 4,026,826 38.1 ​ ​ 3,356,346 36.3 ​ ​ 2,758,743 49.1 ​ Commercial real estate ("CRE") ​ 4,457,630 42.2 ​ ​ 3,945,948 42.7 ​ ​ 1,878,167 33.4 ​ Acquisition, development, and construction ("ADC") ​ 229,663 2.2 ​ ​ 322,628 3.5 ​ ​ 156,296 2.8 ​ Total real estate loans ​ 9,487,440 89.8 ​ ​ 8,294,204 89.7 ​ ​ 4,978,195 88.6 ​ C&I loans ​ 1,071,712 10.1 ​ ​ 933,559 10.1 ​ ​ 641,533 11.4 ​ Other loans ​ 7,679 0.1 ​ ​ 16,898 0.2 ​ ​ 2,316 - ​ Total ​ 10,566,831 100.0 % ​ 9,244,661 100.0 % ​ 5,622,044 100.0 % Allowance for credit losses ​ (83,507) ​ ​ ​ (83,853) ​ ​ ​ (41,461) ​ ​ Loans held for investment, net ​ $ 10,483,324 ​ ​ ​ $ 9,160,808 ​ ​ ​ $ 5,580,583 ​ ​ ​ During the year ended December 31, 2022, our real estate loans and C&I loans increased $1.19 billion and $138.2 million, respectively. ​ Loan Purchases, Sales and Servicing In the event that the Bank were to sell loans in the secondary market or through securitization, it generally retains servicing rights on the loans sold.
Loan Portfolio Composition The following table presents an analysis of outstanding loans by loan type, excluding loans held for sale, net of unearned discounts and premiums and deferred origination fees and costs, at the dates presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ (In thousands) ​ 2023 ​ ​ 2022 ​ ​ 2021 ​ One-to-four family, including condominium and cooperative apartment ​ $ 887,555 ​ 8.2 % ​ $ 773,321 7.3 % ​ $ 669,282 7.2 % Multifamily residential and residential mixed-use ​ 4,017,176 37.3 ​ ​ 4,026,826 38.1 ​ ​ 3,356,346 36.3 ​ CRE ​ 4,620,900 42.9 ​ ​ 4,457,630 42.2 ​ ​ 3,945,948 42.7 ​ Acquisition, development, and construction ("ADC") ​ 168,513 1.6 ​ ​ 229,663 2.2 ​ ​ 322,628 3.5 ​ Total real estate loans ​ 9,694,144 90.0 ​ ​ 9,487,440 89.8 ​ ​ 8,294,204 89.7 ​ C&I loans ​ 1,066,938 9.9 ​ ​ 1,071,712 10.1 ​ ​ 933,559 10.1 ​ Other loans ​ 5,755 0.1 ​ ​ 7,679 0.1 ​ ​ 16,898 0.2 ​ Total ​ 10,766,837 100.0 % ​ 10,566,831 100.0 % ​ 9,244,661 100.0 % Fair value hedge basis point adjustments (1) ​ ​ 6,591 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ Total loans, net of fair value hedge basis point adjustments ​ ​ 10,773,428 ​ ​ ​ ​ ​ 10,566,831 ​ ​ ​ ​ ​ 9,244,661 ​ ​ ​ Allowance for credit losses ​ (71,743) ​ ​ ​ (83,507) ​ ​ ​ (83,853) ​ ​ Loans held for investment, net ​ $ 10,701,685 ​ ​ ​ $ 10,483,324 ​ ​ ​ $ 9,160,808 ​ ​ (1) At December 31, 2023, the loan portfolio included a fair value hedge basis point adjustment to the carrying amount of hedged one-to-four family residential mortgage loans, multifamily residential mortgage loans and CRE loans.
Total net loans held for investment increased $1.32 billion during the year ended December 31, 2022, to $10.48 billion at period end.
Total net loans held for investment increased $218.4 million during the year ended December 31, 2023, to $10.70 billion at period end. During the period, the Bank had originations of $997.8 million.
The increased interest income on C&I loans was primarily due to growth of $960.0 million in the average balances, and a 13-basis point increase in yield during the period. The increased interest income from securities was primarily due to the increase in the average balances of $775.2 million, offset in part by a 97-basis point decrease in the yield.
The increased interest income on C&I loans was primarily due to a 218-basis point increase in yield and an increase of $112.4 million in the average balances of such loans in the period.
Upon entering non-accrual status, we reverse all outstanding accrued interest receivable. 32 Table of Contents We generally initiate foreclosure proceedings on real estate loans when a loan enters non-accrual status based upon non-payment, unless the borrower is paying in accordance with an agreed upon modified payment agreement.
We generally initiate foreclosure proceedings on real estate loans when a loan enters non-accrual status based upon non-payment, unless the borrower is paying in accordance with an agreed upon modified payment agreement. We obtain an updated appraisal upon the commencement of legal action to calculate a potential collateral shortfall and to reserve appropriately for the potential loss.
The following table presents the amortized cost, fair value and weighted average yield of our securities held-to-maturity at December 31, 2022, categorized by remaining period to contractual maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Amortized ​ Fair ​ Average ​ Cost Value Yield ​ ​ (Dollars in Thousands) ​ Due within 1 year ​ $ — ​ $ — — % Due after 1 year but within 5 years ​ 12,432 ​ 11,523 2.41 ​ Due after 5 years but within 10 years ​ 166,697 ​ 142,785 2.42 ​ Due after ten years ​ 406,669 ​ 351,451 2.60 ​ Total ​ $ 585,798 ​ $ 505,759 2.54 % ​ The entire carrying amount of each security at December 31, 2022 is reflected in the above table in the maturity period that includes the final security payment date and, accordingly, no effect has been given to periodic repayments or possible prepayments.
GSEs and agency collateralized mortgage obligations ("CMOs") ​ 16.68 State and municipal obligations ​ 3.92 ​ Securities held-to-maturity ​ The following table presents the amortized cost, fair value and weighted average yield of our securities held-to-maturity at December 31, 2023, categorized by remaining period to contractual maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Amortized ​ Fair ​ Average (Dollars in thousands) Cost Value Yield Due within 1 year ​ $ — ​ $ — — % Due after 1 year but within 5 years ​ 32,742 ​ 30,710 2.48 ​ Due after 5 years but within 10 years ​ 167,524 ​ 144,761 2.48 ​ Due after ten years ​ 394,373 ​ 341,459 2.70 ​ Total ​ $ 594,639 ​ $ 516,930 2.63 % ​ The entire carrying amount of each security at December 31, 2023 is reflected in the above table in the maturity period that includes the final security payment date and, accordingly, no effect has been given to periodic repayments or possible prepayments.
Total deposits decreased $204.6 million during the year ended December 31, 2022 compared to an increase of $5.93 billion during the year ended December 31, 2021. The increase in total deposits during the 2021 period was primarily due to the acquisition of deposits in the Merger.
Total deposits (including mortgage escrow deposits) increased $276.2 million during the year ended December 31, 2023 compared to a decrease of $204.6 million during the year ended December 31, 2022. The increase in total deposits during the 2023 period was primarily due to an increase in money market deposits.
Although maturities and scheduled amortization of loans and investments are predictable sources of funds, deposit flows and prepayments on real estate loans and MBS are influenced by interest rates, economic conditions and competition. The Bank is a member of AFX, through which it may either borrow or lend funds on an overnight or short-term basis with other member institutions.
Although maturities and scheduled amortization of loans and investments are predictable sources of funds, deposit flows and prepayments on real estate loans and MBS are influenced by interest rates, economic conditions and competition.
During the period, the Bank had originations of $2.83 billion. 30 Table of Contents Total securities decreased $206.6 million during the year ended December 31, 2022, to $1.54 billion at period end, primarily due to proceeds from principal payments and calls of $195.3 million and an increase in unrealized losses of $109.7 million, offset in part by purchases of $102.4 million.
Total securities decreased $55.5 million during the year ended December 31, 2023, to $1.48 billion at period end, primarily due to proceeds from principal payments, calls, maturities and sales of $177.8 million offset in part by purchases of $114.4 million and a decrease in unrealized losses of $11.8 million.
The decrease in interest expense on CDs was primarily due to decreased rates offered on CD accounts and, a decrease of $216.2 million in the average balances of such accounts.
The increase in interest expense on CDs was primarily due to a 277-basis point increase in rates paid on CDs and an increase of $517.7 million in the average balances of such deposits in the period.
The following table presents the amortized cost, fair value and weighted average yield of our securities available-for-sale at December 31, 2022, categorized by remaining period to contractual maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Amortized ​ Fair ​ Average ​ Cost Value Yield ​ ​ (Dollars in Thousands) ​ Due within 1 year ​ $ 6,355 ​ $ 6,253 1.10 % Due after 1 year but within 5 years ​ 352,610 ​ 326,218 1.06 ​ Due after 5 years but within 10 years ​ 319,984 ​ 289,401 3.14 ​ Due after ten years ​ 392,909 ​ 328,715 1.48 ​ Total ​ $ 1,071,858 ​ $ 950,587 1.83 % ​ The entire carrying amount of each security at December 31, 2022 is reflected in the above table in the maturity period that includes the final security payment date and, accordingly, no effect has been given to periodic repayments or possible prepayments.
(2) Total average loans represent gross loans (including loans held for sale and fair value hedge basis point adjustments), inclusive of deferred loan fees/costs and premiums/discounts. 37 Table of Contents Investment Activities Securities available-for-sale The following table presents the amortized cost, fair value and weighted average yield of our securities available-for-sale at December 31, 2023, categorized by remaining period to contractual maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Amortized ​ Fair ​ Average (Dollars in thousands) Cost Value Yield Due within 1 year ​ $ 96,095 ​ $ 93,607 0.48 % Due after 1 year but within 5 years ​ 266,176 ​ 250,253 1.44 ​ Due after 5 years but within 10 years ​ 280,157 ​ 247,742 3.42 ​ Due after ten years ​ 353,281 ​ 294,638 1.50 ​ Total ​ $ 995,709 ​ $ 886,240 1.93 % ​ The entire carrying amount of each security at December 31, 2023 is reflected in the above table in the maturity period that includes the final security payment date and, accordingly, no effect has been given to periodic repayments or possible prepayments.
We transferred $372.2 million of securities available-for-sale to securities held-to-maturity during the year ended December 31, 2022. Liabilities. Total liabilities increased $1.15 billion during the year ended December 31, 2022, to $12.02 billion at period end, primarily due to an increase of $1.11 billion in FHLBNY advances, and an increase of $148.5 million in derivative cash collateral.
Total liabilities increased $389.4 million during the year ended December 31, 2023, to $12.41 billion at period end, primarily due to an increase of $276.2 in deposits, an increase of $182.0 million in FHLBNY advances, partially offset by a decrease of $44.9 million in derivative cash collateral and a decrease of $16.1 million in derivative liabilities.
The amount of reserve was $2.8 million at December 31, 2022 and $4.4 million at December 31, 2021. This reserve is 34 Table of Contents determined based upon the outstanding volume of loan commitments at each period end. Any increases or reductions in this reserve are recognized in provision for credit losses.
Reserve for Loan Commitments We maintain a reserve, recorded in other liabilities, associated with unfunded loan commitments accepted by the borrower. The amount of reserve was $2.7 million at December 31, 2023 and $2.8 million at December 31, 2022. This reserve is determined based upon the outstanding volume of loan commitments at each period end.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe analysis that follows presents, as of December 31, 2022 and 2021, the estimated EVE at both the Pre-Shock Scenario and the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ December 31, 2021 ​ ​ ​ Dollar Percentage ​ ​ Dollar Percentage (Dollars in thousands) ​ EVE ​ Change ​ Change ​ EVE ​ Change ​ Change Rate Shock Scenarios ​ ​ + 200 Basis Points ​ $ 1,717,562 ​ $ 78,373 ​ 4.8% ​ $ 1,413,179 ​ $ 194,959 ​ 16.0% ​ + 100 Basis Points ​ ​ 1,703,131 ​ ​ 63,942 3.9% ​ ​ 1,334,981 ​ ​ 116,761 9.6% ​ Pre-Shock Scenario ​ 1,639,189 ​ — — ​ 1,218,220 ​ — — ​ ​ The Company’s Pre-Shock Scenario EVE increased from $1.22 billion at December 31, 2021 to $1.64 billion at December 31, 2022.
Biggest changeNo matter the care and precision with which the estimates are derived, actual cash flows could differ significantly from the Company’s estimates resulting in significantly different EVE calculations. 43 Table of Contents The analysis that follows presents, as of December 31, 2023 and 2022, the estimated EVE at both the Pre-Shock Scenario and the -100 Basis Point Rate, +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ December 31, 2022 ​ ​ ​ Dollar Percentage ​ ​ Dollar Percentage (Dollars in thousands) ​ EVE ​ Change ​ Change ​ EVE ​ Change ​ Change Rate Shock Scenarios ​ ​ + 200 Basis Points ​ $ 1,414,548 ​ $ 79,745 ​ 6.0% ​ $ 1,717,562 ​ $ 78,373 ​ 4.8% ​ + 100 Basis Points ​ ​ 1,375,777 ​ ​ 40,974 3.1% ​ ​ 1,703,131 ​ ​ 63,942 3.9% ​ Pre-Shock Scenario ​ 1,334,803 ​ — — ​ 1,639,189 ​ — — ​ - 100 Basis Points ​ ​ 1,247,956 ​ ​ (86,847) ​ (6.5)% ​ ​ 1,515,010 ​ ​ (124,179) ​ (7.6)% ​ ​ The Company’s Pre-Shock Scenario EVE decreased from $1.64 billion at December 31, 2022, to $1.33 billion at December 31, 2023.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk General The Company’s largest component of market risk remains interest rate risk. The Company is not subject to foreign currency exchange or commodity price risk. During the year ended December 31, 2022, we conducted zero transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk General The Company’s largest component of market risk remains interest rate risk. The Company is not subject to foreign currency exchange or commodity price risk. During the year ended December 31, 2023, we conducted zero transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.
Generally, the value of securities fluctuates inversely with changes in interest rates. Increases in interest rates could result in decreases in the market value of interest-earning assets, which could adversely affect stockholders’ equity and the results of operations if sold. The Company is also subject to reinvestment risk associated with changes in interest rates.
Generally, the value of securities fluctuates inversely with changes in interest rates. Increases in interest rates could result 42 Table of Contents in decreases in the market value of interest-earning assets, which could adversely affect stockholders’ equity and the results of operations if sold. The Company is also subject to reinvestment risk associated with changes in interest rates.
The following table discloses the estimated changes to the Company’s net interest income in various time periods assuming gradual changes in interest rates over a 12-month period beginning December 31, 2022, for the given rate scenarios: ​ ​ ​ ​ ​ ​ ​ Percentage Change in Net Interest Income Gradual Change in Interest rates of: ​ Year-One ​ Year-Two + 200 Basis Points ​ (1.9)% ​ 1.4% + 100 Basis Points ​ (0.9)% ​ 1.2% - 100 Basis Points ​ 0.0% ​ (3.4)% ​ Management also examines the potential impact to net interest income by simulating the impact of instantaneous changes to interest rates.
The following table discloses the estimated changes to the Company’s net interest income in various time periods assuming gradual changes in interest rates over a 12-month period beginning December 31, 2023, for the given rate scenarios: ​ ​ ​ ​ ​ ​ ​ Percentage Change in Net Interest Income Gradual Change in Interest rates of: ​ Year-One ​ Year-Two + 200 Basis Points ​ (0.7)% ​ 2.9% + 100 Basis Points ​ (0.3)% ​ 1.5% - 100 Basis Points ​ 1.7% ​ 0.8% ​ Management also examines the potential impact to net interest income by simulating the impact of instantaneous changes to interest rates.
The following table discloses the estimated changes to the Company’s net interest income in various time periods associated with the given interest rate shock scenarios: ​ ​ ​ ​ ​ ​ ​ Percentage Change in Net Interest Income Instantaneous Rate Shock Scenarios ​ Year-One ​ Year-Two + 200 Basis Points ​ (2.2)% ​ 3.4% + 100 Basis Points ​ (0.9)% ​ 2.3% - 100 Basis Points ​ (1.2)% ​ (4.9)% ​ ​ 43 Table of Contents ​
The following table discloses the estimated changes to the Company’s net interest income in various time periods associated with the given interest rate shock scenarios: ​ ​ ​ ​ ​ ​ ​ Percentage Change in Net Interest Income Instantaneous Rate Shock Scenarios ​ Year-One ​ Year-Two + 200 Basis Points ​ 0.4% ​ 5.2% + 100 Basis Points ​ 0.3% ​ 2.8% - 100 Basis Points ​ 0.9% ​ (0.6)% ​ ​ 44 Table of Contents ​
At December 31, 2022, $1.31 billion, or 85.2%, of our available-for-sale and held-to-maturity securities had fixed interest rates. At December 31, 2022, $7.70 billion, or 72.9%, of our loan portfolio had adjustable or floating interest rates. Changes in interest rates affect the value of interest-earning assets and, in particular, the securities portfolio.
At December 31, 2023, $1.26 billion, or 85.2%, of our available-for-sale and held-to-maturity securities had fixed interest rates. At December 31, 2023, $7.85 billion, or 73.0%, of the loan portfolio had contractual terms with adjustable or floating interest rates. Changes in interest rates affect the value of interest-earning assets and, in particular, the securities portfolio.
As of the end of each quarterly period, the Company also monitors the impact of interest rate changes through a net interest income simulation model. This model estimates the impact of interest rate changes on the Company’s net interest income over forward-looking periods typically not exceeding 36 months (a considerably shorter period than measured through the EVE analysis).
This model estimates the impact of interest rate changes on the Company’s net interest income over forward-looking periods typically not exceeding 36 months (a considerably shorter period than measured through the EVE analysis). Management reports the net interest income simulation results to the Company’s Board of Directors on a quarterly basis.
EVE is the difference between the present value of the expected future cash flows of the Company’s assets and liabilities and the value of any off-balance sheet items, such as derivatives, if applicable. 41 Table of Contents Traditionally, the fair value of fixed-rate instruments fluctuates inversely with changes in interest rates.
In accordance with agency regulatory guidelines, the Company simulates the impact of interest rate volatility upon EVE using several interest rate scenarios. EVE is the difference between the present value of the expected future cash flows of the Company’s assets and liabilities and the value of any off-balance sheet items, such as derivatives, if applicable.
However, the Bank continued to maintain a relatively low-cost funding base during this time even as market rates have risen measurably, resulting in additional economic value. ​ The Company’s EVE in the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios increased from $1.33 billion and $1.41 billion, respectively, at December 31, 2021, to $1.70 billion and $1.72 billion, respectively, at December 31, 2022. 42 Table of Contents Income Simulation Analysis .
The primary factors contributing to the decline in EVE include a shift in the deposit mix, coupled with an increase in the cost of the Bank’s interest-bearing non-maturity deposits during the year. ​ The Company’s EVE in the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios decreased from $1.70 billion and $1.72 billion, respectively, at December 31, 2022, to $1.38 billion and $1.41 billion, respectively, at December 31, 2023.
Removed
In accordance with agency regulatory guidelines, the Company simulates the impact of interest rate volatility upon EVE using several interest rate scenarios.
Added
Traditionally, the fair value of fixed-rate instruments fluctuates inversely with changes in interest rates.
Removed
No matter the care and precision with which the estimates are derived, actual cash flows could differ significantly from the Company’s estimates resulting in significantly different EVE calculations.
Added
In the -100 Basis Point Rate Shock Scenario the Company’s EVE decreased from $1.52 billion at December 31, 2022, to $1.25 billion at December 31, 2023. Income Simulation Analysis . As of the end of each quarterly period, the Company also monitors the impact of interest rate changes through a net interest income simulation model.
Removed
The primary factor contributing to the increase in EVE at December 31, 2022, was the increase in value of the Bank’s low-cost deposit base relative to the current rate environment. Throughout 2022, market interest rates utilized in the calculation of economic value increased materially across all yield curve points.
Removed
Management reports the net interest income simulation results to the Company’s Board of Directors on a quarterly basis.

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