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What changed in Dime Community Bancshares, Inc. /NY/'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Dime Community Bancshares, Inc. /NY/'s 2023 and 2024 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 2024 report.

+251 added−249 removedSource: 10-K (2025-02-20) vs 10-K (2024-02-22)

Top changes in Dime Community Bancshares, Inc. /NY/'s 2024 10-K

251 paragraphs added · 249 removed · 194 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

44 edited+4 added−8 removed77 unchanged
Biggest changeThe 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”).
Biggest changeRegulation 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 Holding Company was incorporated under the laws of the State of New York in 1988 to serve as the holding company for the Bank. The Company functions primarily as the holder of all of the Bank’s common stock.
The Holding Company was incorporated under the laws of the State of New York in 1988 to serve as the holding company for the Bank. The Holding Company functions primarily as the holder of all of the Bank’s common stock.
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.
These deposits, together with funds generated from operations and borrowings, are invested primarily in: (1) commercial real estate (“CRE”) 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.
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.
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.
FRB policy is that a bank holding company should pay cash dividends only to the extent that the company’s net income is sufficient to fund the dividends and the prospective rate of earnings retention is consistent with the company’s capital needs, asset quality and overall financial condition.
FRB policy is that a bank holding company should pay cash dividends only to the extent that the company’s net income is sufficient to fund the dividends and the prospective rate of earnings retention that is consistent with the company’s capital needs, asset quality and overall financial condition.
The policy of the FRB is that a bank holding company must serve as a source of strength to its subsidiary banks by providing capital and other support in times of distress. The Dodd-Frank Act codified the source of strength policy.
The policy of the FRB is that a bank holding company must serve as a source of strength to its subsidiary banks by providing capital, managerial and other support in times of distress. The Dodd-Frank Act codified the source of strength policy.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
We offer an 8-week summer internship program through local colleges that provide students with valuable experience in the professional fields they are considering as 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 17.
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.
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, 2024.
Our culture in the workplace encourages employees to care about each other, the 5 Table of Contents communities they serve, and the work they do. We believe strong community ties, customer focus, accountability, and development of the communities in which we operate will have a favorable long-term impact on our business performance.
Our culture in the workplace encourages employees to care about each other, the communities they serve, and the work they do. We believe strong community ties, customer focus, accountability, and development of the communities in which we operate will have a favorable long-term impact on our business performance.
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.
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.
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.
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.
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.
We sponsor various wellness programs that promote the health and wellness of our employees. 5 Table of Contents 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.
The FRB subsequently issued regulations amending its regulatory capital requirements to implement the Dodd-Frank Act as to bank holding company capital standards. Consolidated regulatory capital requirements identical to those applicable to the subsidiary banks applied to bank holding companies as of January 1, 2015.
The FRB subsequently issued regulations amending its regulatory capital requirements to implement the Dodd-Frank Act as to bank holding company capital 11 Table of Contents standards. Consolidated regulatory capital requirements identical to those applicable to the subsidiary banks applied to bank holding companies as of January 1, 2015.
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.
In addition, the NYSDFS issued guidance applicable to incentive compensation in October 2016. 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.
Any change in applicable New York or federal laws and regulations could have a material adverse impact on us and our operations and stockholders. We file certain reports with the Securities and Exchange Commission (“SEC”) under the federal securities laws.
Any change in applicable New York or federal laws and regulations could have a material adverse impact on us and our operations and stockholders. 12 Table of Contents We file certain reports with the Securities and Exchange Commission (“SEC”) under the federal securities laws.
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.
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.
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 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%; (2) a tier 1 risk-based capital ratio of 8.0%; (3) a total risk-based capital ratio of 10.0%; and (4) a tier 1 leverage ratio of 5.0%.
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”).
The existing capital requirements were effective January 1, 2015 and are the result of a final rule implementing regulatory 7 Table of Contents 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 of 2010, as amended (the “Dodd-Frank Act”).
Item 1. Business General Dime Community Bancshares, Inc. (the “Company”) is a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Dime Community Bank (the “Bank”). The Bank was established in 1910 and is headquartered in Hauppauge, New York.
Item 1. Business General Dime Community Bancshares, Inc. (the “Holding Company”) is engaged in commercial banking and financial services through its wholly-owned subsidiary, Dime Community Bank (the “Bank”). The Bank was established in 1910 and is headquartered in Hauppauge, New York.
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.
As of December 31, 2024, we operated 62 branch locations throughout Long Island, the New York City boroughs of Brooklyn, Queens, Manhattan, Staten Island and the Bronx, and Westchester County. Human Capital Resources Demographics and Culture As of December 31, 2024, we employed 887 full-time equivalent employees. Our employees are not represented by a collective bargaining agreement.
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.
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. The taxation of net income is similar to federal taxable income subject to certain modifications.
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.
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 three performance tests: Lending Test, Investment Test, and Service Test.
Examinations and Assessments The Bank is required to file periodic reports with and is subject to periodic examination by the NYSDFS and the FRB. Applicable laws and regulations generally require periodic on-site examinations and annual audits by independent public accountants for all insured institutions. The Bank is required to pay an annual assessment to the NYSDFS to fund its supervision.
Examinations and Assessments The Bank is required to file periodic reports with and is subject to periodic examination by the NYSDFS and the FRB. Applicable laws and regulations generally require periodic on-site examinations and annual audits by independent public 10 Table of Contents accountants for all insured institutions.
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.
The Bank is required to pay an annual assessment to the NYSDFS to fund its supervision. 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.
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 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”).
Our bank operations include Dime Community Inc., a real estate investment trust subsidiary, and Dime Abstract LLC (“Dime Abstract”), a wholly-owned subsidiary of the Bank, which is a broker of title insurance services. For over a century, we have maintained our focus on building customer relationships in our market area.
Our bank operations also include Dime Abstract LLC (“Dime Abstract”), a wholly-owned subsidiary of the Bank, which is a broker of title insurance services. For over a century, we have maintained our focus on building customer relationships in our market area. Our mission is to grow through the provision of exceptional service to our customers, our employees, and the community.
We engage in providing full service commercial and consumer banking services, including accepting time, savings and demand deposits from the businesses, consumers, and local municipalities in our market area.
We strive to achieve excellence in financial performance and build long-term shareholder value. We engage in providing full service commercial and consumer banking services, including accepting time, savings and demand deposits from the businesses, consumers, and local municipalities in our market area.
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.
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. 9 Table of Contents Federal law additionally permits each state to enact legislation that is more protective of consumers’ personal information.
The Bank’s deposit accounts are insured up to applicable limits by the FDIC under its Deposit Insurance Fund (“DIF”) and the FDIC has certain regulatory authority as deposit insurer. A summary of the primary laws and regulations that govern the Bank’s operations are set forth below.
The Bank’s deposit accounts are insured up to applicable limits by the FDIC under its Deposit Insurance Fund (“DIF”), and the FDIC has certain regulatory authority as deposit insurer.
Through its title insurance subsidiary, the Bank acts as a broker for title insurance services. Our customer base is comprised principally of small and medium sized businesses, municipal relationships and consumer relationships.
We also offer investment services through Dime Financial Services LLC, which offers a full range of investment products and services through a third-party broker dealer. Through its title insurance subsidiary Dime Abstract, the Bank acts as a broker for title insurance services. Our customer base is comprised principally of small and medium sized businesses, municipal relationships and consumer relationships.
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.
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, rule or condition imposed by the FDIC.
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.
Together, the BSA and USA PATRIOT Act require the Bank to implement internal controls, conduct customer due diligence, maintain records, and file reports. 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.
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 2016, the federal regulatory agencies approved a proposed joint rulemaking to implement Section 956 of the Dodd-Frank Act, which prohibits incentive-based compensation that encourages inappropriate risk taking. In May 2024, several federal banking agencies reproposed the incentive compensation regulation, but the FRB did not endorse the 2024 proposal.
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.
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 (for each depositor) is $250,000 per depositor for each account ownership category. The FDIC assesses insured depository institutions to maintain the DIF.
In addition, we offer merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts as well as investment services through Dime Financial Services LLC, which offers a full range of investment products and services through a third-party broker dealer.
In addition, we offer merchant credit and debit card processing, automated teller machines, cash and treasury management services, escrow account services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts.
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.
As of the date of its most recent CRA examination, on July 15, 2024, the Bank was rated “Outstanding” by the Federal Reserve Bank of New York. On October 24, 2023, the FDIC, the FRB, and the Office of the Comptroller of the Currency issued a final rule to strengthen and modernize the CRA regulations.
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.
New York commercial banks have authority to originate and purchase any type of loan, including commercial, commercial real estate, residential mortgage, and consumer loans.
Cybersecurity more broadly has become a focus of federal and state banking agencies, including during the regulators’ examinations.
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 banking agencies, including during the regulators’ examinations.
The 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”.
The applicability date for the majority of the provisions set by the CRA regulations is January 1, 2026, and additional requirements are applicable under the regulations on January 1, 2027.
Member banks deemed by the FRB to be “critically undercapitalized” would be subject to the appointment of a receiver or conservator. The final rule that increased regulatory capital standards adjusted the prompt corrective action tiers as of January 1, 2015.
A “significantly undercapitalized” bank would be subject to additional restrictions. 8 Table of Contents Member banks deemed by the FRB to be “critically undercapitalized” would be subject to the appointment of a receiver or conservator.
Removed
Our mission is to grow through the provision of exceptional service to our customers, our employees, and the community. We strive to achieve excellence in financial performance and build long-term shareholder value.
Added
A summary of the primary laws and regulations that govern the Bank’s operations are set forth below. 6 Table of Contents 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.
Removed
On February 1, 2021, Dime Community Bancshares, Inc., a Delaware corporation (“Legacy Dime”) merged with and into Bridge Bancorp, Inc., a New York corporation (“Bridge”) (the “Merger”), with Bridge as the surviving corporation under the name “Dime Community Bancshares, Inc.” (the “Holding Company”).
Added
Under the FDIC’s risk-based assessment system, institutions deemed less risky pay lower assessments.
Removed
At the effective time of the Merger (the “Effective Time”), each outstanding share of Legacy Dime common stock, par value $0.01 per share, was converted into the right to receive 0.6480 shares of the Holding Company’s common stock, par value $0.01 per share.
Added
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, which the Bank continues to pay.
Removed
At the Effective Time, each outstanding share of Legacy Dime’s Series A preferred stock, par value $0.01 (the “Dime Preferred Stock”), was converted into the right to receive one share of a newly created series of the Holding Company’s preferred stock having the same powers, preferences and rights as the Dime Preferred Stock.
Added
On March 29, 2024, a federal court in the Northern District of Texas issued a preliminary injunction of the new CRA regulations, enjoining the federal banking agencies from enforcing the regulations against the plaintiff bank industry trade groups, and extending the regulations’ implementation dates day-for-day for each day the injunction is in place.
Removed
Immediately following the Merger, Dime Community Bank, a New York-chartered commercial bank and a wholly-owned subsidiary of Legacy Dime, merged with and into BNB Bank, a New York-chartered trust company and a wholly-owned subsidiary of Bridge, with BNB Bank as the surviving bank, under the name “Dime Community Bank” (the “Bank”).
Removed
The various categories were revised to incorporate the new common equity tier 1 capital requirement, the increase in the tier 1 to risk-based assets requirement and other changes.
Removed
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.
Removed
Together, the BSA and USA PATRIOT Act require the Bank to implement internal controls, conduct customer due diligence, maintain records, and file reports.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

22 edited+1 added−3 removed87 unchanged
Biggest changeSuch events may cause us to incur losses and may adversely affect our capital, liquidity, and financial condition. ​ Strong competition within our market area may limit our growth and profitability. Our primary market area is located in Greater Long Island and Manhattan. Competition in the banking and financial services industry remains intense.
Biggest changeSuch events may cause us to incur losses and may adversely affect our capital, liquidity, and financial condition. ​ Governmental policies, including, but not limited to, changes in government spending, the freezing of government funding or grants, or changes to the government workforce could have an adverse affect on consumers’ or businesses’ ability to pay their debts and/or affect the demand for loans and deposits. ​ Strong competition within our market area may limit our growth and profitability.
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.
In addition, in accordance with a memorandum of understanding entered into between the CFPB and U.S. 16 Table of Contents 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.
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.
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 17 Table of Contents 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.
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.
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; tariffs; geopolitical conflicts; natural disasters; or a combination of these or other factors. 18 Table of Contents ​ 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, unemployment rates, supply chain issues, or labor shortages, which have direct or indirect material adverse impacts on us, our customers, and our counterparties.
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.
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, the economic environment and governmental policies. ​ 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.
Our loans to businesses and individuals and our deposit relationships and related transactions are subject to exposure to the risk of loss due to fraud and other financial crimes. While we have policies and procedures designed to prevent such losses, losses may still occur. In the past, we have experienced losses due to fraud.
Our loans to businesses and individuals and our deposit relationships and related transactions are subject to exposure to the risk of loss due to fraud and other financial crimes. While we have policies and procedures designed to prevent such losses, losses may still occur.
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.
The Consolidated Company’s non-owner occupied CRE level equaled 447% of total risk-based capital at December 31, 2024. 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.
Our primary business activity for the foreseeable future will be to act as the holding company of the Bank. Therefore, our future profitability will depend on the success and growth of this subsidiary.
Our future success depends on the success and growth of Dime Community Bank. Our primary business activity for the foreseeable future will be to act as the holding company of the Bank. Therefore, our future profitability will depend on the success and growth of this subsidiary.
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.
Generally, the fair value of securities moves inversely with changes in interest rates. As of December 31, 2024, the carrying value of the securities portfolio totaled $1.32 billion.
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.
Threats to information security also exist in the processing of customer information through various other vendors and their personnel. 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.
In determining the amount of the allowance for credit losses, we rely on loan quality reviews, our past loss experience and that of our peer group, and an evaluation of economic conditions, among other factors.
In determining the amount of the allowance for credit losses, we rely on loan quality reviews, our past loss experience and that of our peer group, and the accuracy of macro-economic forecasts over a reasonable and supportable forecast period, among other factors.
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.
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. Additionally, at December 31, 2024, our portfolio of business loans, totaled $2.73 billion, or 25.1% of our total loan portfolio.
Because these subordinated debentures rank senior to our common stock, if we fail to make timely principal and interest payments on the subordinated debentures, we may not pay any dividends on our common stock.
In 2024, the Company issued $74.8 million of 9.00% Fixed-to-Floating Rate Subordinated Debentures due 2034. Because these subordinated debentures rank senior to our common stock, if we fail to make timely principal and interest payments on the subordinated debentures, we may not pay any dividends on our common stock.
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.
We collect, process and store sensitive customer data by utilizing computer systems and telecommunications networks operated by us and third-party service providers. 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.
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.
For example, the New York City Rent Guidelines Board established the maximum rent increase on certain apartments at 2.75% for a one-year lease and 5.25% for a two-year lease, beginning on or after October 1, 2024 and through September 30, 2025, and while the overall inflation rate increased at a greater rate.
If these third-party service providers encounter difficulties, or if we have difficulty communicating with them, our ability to adequately process and account for transactions could be affected, and our business operations could be adversely affected. Threats to information security also exist in the processing of customer information through various other vendors and their personnel.
In addition, we maintain interfaces with certain third-party service providers. If these third-party service providers encounter difficulties, or if we have difficulty communicating with them, our ability to adequately process and account for transactions could be affected, and our business operations could be adversely affected.
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.
These shifts in investing priorities may result in adverse effects on the trading price of the Company’s common stock if the Company, or our relationships with certain customers, vendors or suppliers became the subject of negative publicity. ​ 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.
In addition, competitors may offer deposits at higher rates and loans with lower fixed rates, more attractive terms and less stringent credit structures than we have been willing to offer. Our future success depends on the success and growth of Dime Community Bank.
Many of our competitors have substantially greater resources and lending limits than us and may offer certain services that we do not provide. In addition, competitors may offer deposits at higher rates and loans with lower fixed rates, more attractive terms and less stringent credit structures than we have been willing to offer.
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.
Cyber threats are rapidly evolving, and we may not be able to anticipate or prevent all such attacks. If one or more 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.
Risks associated with system failures, interruptions, or breaches of security could negatively affect our operations and earnings. Information technology systems are critical to our business. We collect, process and store sensitive customer data by utilizing computer systems and telecommunications networks operated by us and third-party service providers.
In the past, we have experienced losses due to fraud. 19 Table of Contents Risks associated with system failures, interruptions, or breaches of security could negatively affect our operations and earnings. Information technology systems are critical to our business.
Our profitability depends on the continued ability to successfully compete. We compete with commercial banks, savings banks, credit unions, insurance companies, and brokerage and investment banking firms. Many of our competitors have substantially greater resources and lending limits than us and may offer certain services that we do not provide.
Our primary market area is located in Greater Long Island and Manhattan. Competition in the banking and financial services industry remains intense. Our profitability depends on the continued ability to successfully compete. We compete with commercial banks, savings banks, credit unions, insurance companies, and brokerage and investment banking firms.
Governments, investors, customers and the general public are increasingly focused on ESG practices and disclosures, and views about ESG are diverse and rapidly changing. These shifts in investing priorities may result in adverse effects on the trading price of the Company’s common stock if investors determine that the Company has not made sufficient progress on ESG matters.
Governments, investors, customers and the general public are increasingly focused 20 Table of Contents on ESG practices and disclosures, and views about ESG are diverse and rapidly changing.
Removed
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.
Added
In addition, overhead (including maintenance) expenses often increase significantly during inflationary periods.
Removed
Cyber threats are rapidly evolving, and we may not be able to anticipate or prevent all such attacks.
Removed
The Company could also face potential negative ESG-related publicity in traditional media or social media if shareholders or other stakeholders determine that we have not adequately considered or addressed ESG matters.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOversee Third-Party Risk ● Dime has processes to oversee and identify material risks from reported cybersecurity threats from any third-party service providers or vendors. The Bank’s Third-Party Risk Management Program requires an initial due diligence, on-going monitoring, and annual recertification of third-party cybersecurity controls. Cybersecurity Risks ● Dime considers Cybersecurity Risks as part of our strategic planning process.
Biggest changeOversee Third-Party Risk ● The Bank has processes to oversee and identify material risks from reported cybersecurity threats from any third-party service providers or vendors . The Bank’s Third-Party Risk Management Program requires an initial due diligence, on-going monitoring, and annual recertification of third-party cybersecurity controls.
Cybersecurity Threats ● To assess and manage cybersecurity threats from material risks, Dime maintains an Incident Response Team comprised of members from the major business areas in the Bank to ensure appropriate subject matter experts are represented.
Cybersecurity Threats ● To assess and manage cybersecurity threats from material risks, the Bank maintains an Incident Response Team comprised of members from the major business areas in the Bank to ensure appropriate subject matter experts are represented.
Engagement With Third-Parties on Risk Management ● Cybersecurity is part of Dime’s overall risk management program, which is supported through the use of consultants, auditors and other third-parties who assist with reviewing and validating the effectiveness of cybersecurity controls. Internal Audit actively participates and engages with those managing the cybersecurity program to validate the effectiveness of implemented safeguards.
Engagement With Third-Parties on Risk Management ● Cybersecurity is part of the Bank’s overall risk management program, which is supported through the use of consultants, auditors and other third-parties who assist with reviewing and validating the effectiveness of cybersecurity controls. Internal Audit actively participates and engages with those managing the cybersecurity program to validate the effectiveness of implemented safeguards.
All cybersecurity events include a determination of whether the incident has materially affected or is reasonably likely to materially affect the Bank’s business strategy, results of operations, or financial condition by following implemented processes. ​ ● Dime has not identified any cybersecurity threats that have materially affected operations or financial position.
All cybersecurity events include a determination of whether the incident has materially affected or is reasonably likely to materially affect the Bank’s business strategy, results of operations, or financial condition by following implemented processes. ​ ● The Bank has not identified any cybersecurity threats that have materially affected operations or financial position .
External audit results are reviewed and reported on in our annual filing. Additionally, Dime is a regulated entity and undergoes regulatory reviews to ensure the Bank remains in compliance with all appropriate standards. ​ ​ 22 Table of Contents
External audit results are reviewed and reported on in our annual filing. Additionally, the Bank is a regulated entity and undergoes regulatory reviews to ensure it remains in compliance with all appropriate standards. ​ ​ 22 Table of Contents
Management Role and Board Oversight . ● The cybersecurity program is overseen by the Chief Information Security Officer (“CISO”) reporting into the Chief Risk Officer (“CRO”), the Enterprise Risk Management Committee, which consists of the CEO, CFO, and CTO among others, and the Enterprise Risk Committee of the Board of Directors, which consists of three independent directors.
Management Role and Board Oversight . ● The cybersecurity program is overseen by the Chief Information Security Officer (“CISO”) reporting to the Chief Risk Officer (“CRO”); the Enterprise Risk Management Committee , which consists of the CEO, CFO, and CTO among others; and the Enterprise Risk Committee of the Board of Directors, which consists of three independent directors .
Additionally, the Bank’s Risk Management function is led by the CRO, who has extensive experience in risk management and audit. The cybersecurity program includes a cross-sectional team of internal and external Information Security professionals, all of which are provided with relevant 21 Table of Contents training and are required to maintain industry accredited certifications.
Additionally, the Bank’s Risk Management function is led by the CRO, who has extensive experience in risk management and audit . The cybersecurity program includes a cross-sectional team of internal and external Information Security professionals, all of which are provided with relevant training and are required to maintain industry accredited certifications.
The CISO’s extensive knowledge and experience in the cybersecurity field are critical to executing our cybersecurity program. Our CISO oversees proactive initiatives, remediation plans of known risks, compliance with regulations and standards, and Disaster Recovery, Business Continuity, and Incident Response efforts.
The CISO’s extensive knowledge and experience in the cybersecurity field are critical to executing our cybersecurity program. Our CISO oversees proactive initiatives, remediation plans 21 Table of Contents of known risks, compliance with regulations and standards, Disaster Recovery, Business Continuity, and Incident Response efforts.
Cybersecurity ​ Overview ● Dime Community Bank (“Dime”, “the Bank”) maintains comprehensive information technology and cybersecurity programs which encompass policies, procedures, assessments, monitoring, response plans, and testing to ensure technical, administrative, and physical controls are effective. ● Dime’s Cybersecurity Incident Response and Business Continuity Programs are inclusive of cyber resiliency, business continuity and disaster recovery strategies to help mitigate the impact of a cybersecurity incident across all business lines.
Cybersecurity ​ Overview ● The Bank maintains comprehensive information technology and cybersecurity programs which encompass policies, procedures, assessments, monitoring, response plans, and testing to ensure technical, administrative, and physical controls are effective. ● The Bank’s Cybersecurity Incident Response and Business Continuity Programs are inclusive of cyber resiliency, business continuity and disaster recovery strategies to help mitigate the impact of a cybersecurity incident across all business lines.
Management and the Board of Directors acknowledge that technology systems, managed both by Dime and third-party service providers, are critical to business operations and therefore require appropriate risk management.
Cybersecurity Risks ● The Bank considers Cybersecurity Risks as part of our strategic planning process. Management and the Board of Directors acknowledge that technology systems, managed both by the Bank and third-party service providers, are critical to business operations and therefore require appropriate risk management.

Item 2. Properties

Properties — owned and leased real estate

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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.
Biggest changeThe Bank’s main office is located at 2200 Montauk Highway in Bridgehampton, New York. ​ As of December 31, 2024, we operated 62 branch locations throughout Greater Long Island, the New York City boroughs of Brooklyn, Queens, Manhattan, Staten Island and the Bronx, and Westchester County, of which 51 were leased and 11 were owned. ​ For additional information on our premises and equipment, see Note 6.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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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
Biggest changeIn the opinion of management, as of December 31, 2024, 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+0 added−1 removed2 unchanged
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.
Biggest changeThe following performance graph reflects the performance of BDGE prior to the Merger. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, Index 2019 2020 2021 2022 2023 2024 Dime Community Bancshares, Inc. ​ 100.00 75.51 112.73 ​ 105.06 92.97 110.65 S&P SmallCap 600 Banks Index ​ 100.00 89.23 119.79 107.95 107.99 123.79 NASDAQ Composite Index ​ 100.00 144.92 177.06 119.45 172.77 223.87 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, 2018 through December 31, 2023.
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, 2019 through December 31, 2024.
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.
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, 2024, there were 1,566,947 shares remaining to be purchased in the program. There were no repurchases of common stock during the year ended December 31, 2024. ​ ​ Item 6. [Reserved]
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.
At February 13, 2025, we had approximately 1,075 shareholders of record, not including the number of persons or entities holding stock in nominee or the street name through various banks and brokers.
Removed
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

99 edited+51 added−43 removed35 unchanged
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.
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, ​ ​ 2024 ​ 2023 ​ 2022 ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ Average ​ ​ ​ ​ Average ​ ​ ​ Average ​ ​ ​ ​ Yield/ ​ Average ​ ​ ​ Yield/ ​ Average ​ ​ ​ ​ Yield/ ​ ​ Balance Interest ​ Cost Balance Interest Cost Balance Interest Cost ​ Assets: (Dollars in thousands) Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business loans (1) (3) (6) ​ $ 2,500,904 ​ $ 175,604 ​ 7.02 % $ 2,246,442 ​ $ 147,530 ​ 6.57 % $ 2,006,287 ​ $ 99,296 ​ ​ 4.95 % One-to-four family residential, including condo and coop (3) (6) ​ ​ 910,096 ​ ​ 41,823 ​ 4.60 ​ ​ 847,706 ​ ​ 35,148 ​ 4.15 ​ ​ 703,055 ​ ​ 24,705 ​ ​ 3.51 ​ Multifamily residential and residential mixed-use (3) (6) ​ ​ 3,927,197 ​ ​ 181,736 ​ 4.63 ​ ​ 4,096,025 ​ ​ 180,286 ​ 4.40 ​ ​ 3,675,595 ​ ​ 139,562 ​ ​ 3.80 ​ Non-owner-occupied commercial real estate (3) (6) ​ ​ 3,323,299 ​ ​ 177,173 ​ 5.33 ​ ​ 3,353,805 ​ ​ 171,475 ​ 5.11 ​ ​ 3,071,837 ​ ​ 125,659 ​ ​ 4.09 ​ ADC (3) ​ ​ 155,279 ​ ​ 13,936 ​ 8.97 ​ ​ 214,106 ​ ​ 19,656 ​ 9.18 ​ ​ 279,620 ​ ​ 16,752 ​ ​ 5.99 ​ Other loans (3) ​ 5,046 ​ 220 ​ 4.36 ​ 6,514 ​ 393 ​ 6.03 ​ 11,493 ​ 627 ​ ​ 5.46 ​ Securities ​ 1,515,962 ​ 33,563 ​ 2.21 ​ 1,640,066 ​ 32,179 ​ 1.96 ​ 1,687,835 ​ 29,224 ​ 1.73 ​ Other short-term investments ​ 499,633 ​ 26,094 ​ 5.22 ​ 442,574 ​ 22,693 ​ 5.13 ​ 248,779 ​ 3,400 ​ 1.37 ​ Total interest-earning assets ​ 12,837,416 ​ ​ 650,149 ​ 5.06 % 12,847,238 ​ ​ 609,360 ​ 4.74 % 11,684,501 ​ ​ 439,225 ​ ​ 3.76 % Non-interest earning assets ​ 781,373 ​ ​ ​ ​ ​ 777,977 ​ ​ ​ ​ ​ 782,261 ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 13,618,789 ​ ​ ​ ​ ​ ​ $ 13,625,215 ​ ​ ​ ​ ​ ​ $ 12,466,762 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' Equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing checking (2) ​ $ 731,709 ​ $ 12,472 1.70 % $ 775,904 ​ $ 8,562 1.10 % $ 851,931 ​ $ 3,115 ​ ​ 0.37 % Money market ​ 3,650,266 ​ 134,367 3.68 ​ 2,882,859 ​ 83,950 2.91 ​ ​ 2,971,312 ​ 10,879 ​ ​ 0.37 ​ Savings (2) ​ 2,177,372 ​ 80,239 3.69 ​ 2,311,275 ​ 73,270 3.17 ​ ​ 1,815,198 ​ 15,906 ​ ​ 0.88 ​ CDs ​ 1,351,408 ​ 57,667 4.27 ​ 1,444,554 ​ 53,263 3.69 ​ ​ 926,837 ​ 8,533 ​ ​ 0.92 ​ Total interest-bearing deposits ​ 7,910,755 ​ 284,745 3.60 ​ 7,414,592 ​ 219,045 2.95 ​ ​ 6,565,278 ​ ​ 38,433 ​ ​ 0.59 ​ FHLBNY advances ​ 699,940 ​ ​ 27,268 3.90 ​ 1,251,871 ​ ​ 56,140 4.48 ​ ​ 252,838 ​ ​ 7,062 ​ ​ 2.79 ​ Subordinated debt, net ​ ​ 236,738 ​ ​ 13,765 ​ 5.81 ​ ​ 200,243 ​ ​ 10,212 ​ 5.10 ​ ​ 217,753 ​ ​ 10,616 ​ ​ 4.88 ​ Other short-term borrowings ​ ​ 189 ​ ​ 3 ​ 1.59 ​ ​ 3,150 ​ ​ 120 ​ 3.81 ​ ​ 56,030 ​ ​ 1,439 ​ ​ 2.57 ​ Total borrowings ​ ​ 936,867 ​ ​ 41,036 ​ 4.38 ​ ​ 1,455,264 ​ ​ 66,472 ​ 4.57 ​ ​ 526,621 ​ ​ 19,117 ​ ​ 3.63 ​ Derivative cash collateral ​ ​ 116,567 ​ ​ 6,314 ​ 5.42 ​ ​ 143,735 ​ ​ 7,272 ​ 5.06 ​ ​ 97,225 ​ ​ 1,812 ​ ​ 1.86 ​ Total interest-bearing liabilities ​ ​ 8,964,189 ​ ​ 332,095 ​ 3.70 % ​ 9,013,591 ​ ​ 292,789 ​ 3.25 % ​ 7,189,124 ​ ​ 59,362 ​ ​ 0.83 % Non-interest-bearing checking (2) ​ ​ 3,140,423 ​ ​ ​ ​ ​ ​ ​ 3,126,575 ​ ​ ​ ​ ​ ​ ​ 3,890,642 ​ ​ ​ ​ ​ ​ ​ Other non-interest-bearing liabilities ​ ​ 230,910 ​ ​ ​ ​ ​ ​ ​ 270,033 ​ ​ ​ ​ ​ ​ ​ 218,194 ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ 12,335,522 ​ ​ ​ ​ 12,410,199 ​ ​ ​ ​ ​ 11,297,960 ​ ​ ​ ​ ​ ​ ​ Stockholders' equity ​ 1,283,267 ​ ​ ​ ​ 1,215,016 ​ ​ ​ ​ ​ 1,168,802 ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity ​ $ 13,618,789 ​ ​ ​ ​ $ 13,625,215 ​ ​ ​ ​ $ 12,466,762 ​ ​ ​ ​ ​ ​ ​ Net interest income ​ ​ ​ ​ $ 318,054 ​ ​ ​ ​ $ 316,571 ​ ​ ​ ​ ​ $ 379,863 ​ ​ ​ ​ Net interest rate spread (4) ​ ​ ​ ​ ​ 1.36 % ​ ​ ​ 1.49 % ​ ​ ​ ​ ​ ​ ​ 2.93 % Net interest-earning assets ​ $ 3,873,227 ​ ​ ​ ​ ​ ​ $ 3,833,647 ​ ​ ​ ​ ​ ​ $ 4,495,377 ​ ​ ​ ​ ​ ​ ​ Net interest margin (5) ​ ​ ​ ​ 2.48 % ​ ​ ​ 2.46 % ​ ​ ​ ​ ​ ​ 3.25 % Ratio of interest-earning assets to interest-bearing liabilities ​ ​ ​ ​ ​ 143.21 % ​ ​ ​ 142.53 % ​ ​ ​ ​ ​ ​ 162.53 % Deposits (including non-interest-bearing checking accounts) (2) ​ $ 11,051,178 ​ $ 284,745 2.58 % $ 10,541,167 ​ $ 219,045 ​ 2.08 % $ 10,455,920 ​ ​ 38,433 ​ ​ 0.37 % (1) Business loans include commercial and industrial loans (“C&I”), owner-occupied commercial real estate loans and SBA Paycheck Protection Program (“PPP”) loans.
These factors include: (1) lending policies and procedures; (2) international, national, regional and local economic business conditions and developments that affect the collectability of the portfolio, including the condition of various markets; (3) the nature and volume of the loan portfolio; (4) the experience, ability, and depth of the lending management and other relevant staff; (5) the volume and severity of past due loans; (6) the quality of our loan review system; (7) the value of underlying collateral for collateralized loans; (8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (9) the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio.
These factors include: (1) lending policies and procedures and the experience, ability, and depth of the lending management and other relevant staff; (2) international, national, regional and local economic business conditions and developments that affect the collectability of the portfolio, including the condition of various markets; (3) the nature and volume of the loan portfolio; (4) the volume and severity of past due loans; (5) the quality of our loan review system; (6) the value of underlying collateral for collateralized loans; (7) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (8) the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio.
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 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, 2024 or 2023.
Additionally, in connection with a loan securitization transaction that was completed in 2017, the Bank executed a reimbursement agreement with FHLMC that obligates the Company to reimburse FHLMC for any contractual principal and interest payments on defaulted loans, not to exceed 10% of the original principal amount of the loans comprising the aggregate balance of the loan pool at securitization.
Additionally, in connection with a loan securitization completed in 2017, the Bank executed a reimbursement agreement with FHLMC that obligates the Company to reimburse FHLMC for any contractual principal and interest payments on defaulted loans, not to exceed 10% of the original principal amount of the loans comprising the aggregate balance of the loan pool at securitization.
Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include conditions where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and/or a combinations of these modifications.
Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows, include conditions where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and/or a combination of these modifications.
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.
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, 2024 or December 31, 2023.
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.
As a general matter, these capital requirements are based on the amount and composition of an institution’s assets. At December 31, 2024, 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.
The Bank also generates non-interest income, such as fee income on deposit and loan accounts, merchant credit and debit card processing programs, loan swap fees, investment services, income from its title insurance subsidiary, and net gains on sales of securities and loans.
The Bank also generates non-interest income, such as fee income on deposit and loan accounts, merchant credit and debit card processing programs, loan swap fees, investment services, income from its title insurance subsidiary, and net gains on sales of securities and loans and other assets.
The weighted average duration of our securities available-for-sale approximated 2.9 years as of December 31, 2023 when giving consideration to anticipated repayments or possible prepayments, which is significantly less than their weighted average maturity.
The weighted average duration of our securities available-for-sale approximated 2.9 years as of December 31, 2024, when giving consideration to anticipated repayments or possible prepayments, which is significantly less than their weighted average maturity.
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.
Thereafter, periodic letters are mailed and phone calls are placed to the borrower until payment is received or the loan is transferred to workout. 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 increase in interest expense on money market accounts was primarily due to a 254-basis point increase in rates paid on money market accounts, offset by a decrease of $88.5 million 30 Table of Contents in the average balances of such deposits in the period.
The increase in interest expense on money market accounts was primarily due to a 254-basis point increase in rates paid on money market accounts, offset by a decrease of $88.5 million in the average balances of such deposits in the period.
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.
Reserve for Unfunded 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, 2024 and 2023, respectively. This reserve is determined based upon the outstanding volume of unfunded loan commitments at each period end.
Future additions or reductions to the allowance may be necessary based on changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance through charges to earnings and would materially decrease our net income.
Future additions or reductions to the allowance may be necessary 26 Table of Contents based on changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance through charges to earnings and would materially decrease our net income.
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.
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 $1.0 million in 2024, $1.5 million in 2023, and $3.1 million in 2022.
At June 30, 2023, if the four-quarter national unemployment rate forecast had increased 100 basis points our quantitative ACL reserve would have increased 10.5%. Changes in quantitative inputs may not occur in the same direction or magnitude across all segments of our loan portfolio and deterioration in some quantitative inputs may offset improvement in others.
Changes in quantitative inputs may not occur in the same direction or magnitude across all segments of our loan portfolio and deterioration in some quantitative inputs may offset improvement in others. At June 30, 2024, if the four-quarter national unemployment rate forecast had increased 100 basis points our quantitative ACL reserve would have increased 11.8%.
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 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. ​ Provision for Credit Losses.
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.
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, 2024, the Bank had $77.8 million of firm loan commitments that were accepted by the borrowers.
This sensitivity analysis does not represent a change to our expectations of the economic environment but provides a hypothetical result to assess the sensitivity of the ACL to a change in a key input. This sensitivity analysis does not incorporate changes to management’s judgment of qualitative loss factors.
The sensitivity analysis does not represent a change to our expectations of the economic environment but provides a hypothetical result to assess the sensitivity of the ACL to a change in a key quantitative input. Additionally, the sensitivity analysis described above does not incorporate changes to management’s judgment of qualitative loss factors.
The decrease in loan fees in 2023 was primarily due to a decline in loan prepayment fees.
The decrease in loan fees in 2024 was primarily due to a decline in loan prepayment fees.
During 2023, non-interest expense increased $12.4 million from 2022, primarily due to a $6.9 million increase in severance expense, a $5.0 million increase in federal deposit insurance premiums (including $1.0 million of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank), partially offset by a $2.7 million decrease in salaries and employee benefits.
During 2023, non-interest expense increased $12.4 million from 2022, primarily due to a $6.9 million increase in severance expense, a $5.0 million increase in federal deposit insurance premiums (including $1.0 million of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank), partially offset by a $2.7 million decrease in salaries and employee benefits. ​ Non-interest expense was 1.66%, 1.56%, and 1.61% of average assets during 2024, 2023, and 2022, respectively. ​ Income Tax Expense.
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.
At December 31, 2024 and 2023, the Bank had recorded servicing right assets ("SRAs") of $2.4 million and $2.9 million, respectively, associated with the sale of loans to third-party institutions in which the Bank retained the servicing of the loan.
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.
We did not recognize any provisions for losses on OREO properties during the years ended December 31, 2024, 2023 or 2022. 37 Table of Contents Past Due Loans Loans Delinquent 30 to 59 Days At December 31, 2024, we had loans totaling $10.3 million that were past due between 30 and 59 days, compared to $12.0 million at December 31, 2023.
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.
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 $49.5 million at December 31, 2024 and $29.1 million at December 31, 2023.
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.
The $2.8 million provision for credit losses recognized in 2023 was associated with increased 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 macroeconomic conditions, offset by a reduction in reserves on individually analyzed loans and unfunded commitments. ​ Non-Interest Income.
See Note 4 to our Consolidated Financial Statements for a discussion of evaluation for impaired securities.
See Note 3 of our Consolidated Financial Statements for a discussion of evaluation for impaired securities.
At December 31, 2023, the Bank had remaining borrowing capacity of $1.19 billion through the FHLBNY, subject to customary minimum FHLBNY common stock ownership requirements ( i.e. , 4.5% of the Bank’s drawn FHLBNY borrowings). The Bank also had access to the FRB Discount Window and the FRB Bank Term Funding Program.
At December 31, 2024, the Bank had remaining borrowing capacity of $1.84 billion through the FHLBNY, subject to customary minimum FHLBNY common stock ownership requirements ( i.e. , 4.5% of the Bank’s drawn FHLBNY borrowings). The Bank also had access to the FRB Discount Window.
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.
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.
Guarantors are also required to update their financial reporting. All exposures are risk rated and those entering adverse ratings due to financial performance concerns of the borrower or material delinquency of any payments or financial reporting are subjected to added management scrutiny.
All exposures are credit risk rated and those entering adverse ratings due to financial performance concerns of the borrower or material delinquency of any payments or financial reporting are subjected to added management scrutiny and monitoring.
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.
The Holding Company paid $38.0 million and $37.3 million in cash dividends on its common stock during the years ended December 31, 2024 and 2023, respectively. Contractual Obligations The Bank generally has borrowings outstanding in the form of FHLBNY advances, short-term or overnight borrowings, subordinated debt, as well as customer CDs with fixed contractual interest rates.
At December 31, 2023, an available line of credit totaling $848.4 million was in place at the FRB backed by investment securities with no advances drawn.
At December 31, 2024, an available line of credit totaling $394.6 million was in place at the FRB backed by investment securities with no advances drawn.
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.
Such non-accrual determination practices are applied consistently to all loans regardless of their internal classification or designation. Upon entering non-accrual status, the system will reverse all outstanding accrued interest receivable.
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.
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. Loans Delinquent 60 to 89 Days At December 31, 2024, we had loans totaling $31.3 million that were past due between 60 and 89 days, compared to $1.3 million at December 31, 2023.
During 2023, interest expense increased $233.4 million from 2022, primarily reflecting increases in interest expense of $73.1 million on money market accounts, $57.4 million on savings accounts, $49.1 million on Federal Home Loan Bank of New York (“FHLBNY”) advances and $44.7 million on CDs.
During 2023, interest expense increased $233.4 million from 2022, primarily reflecting increases in interest expense of $73.1 million on money market accounts, $57.4 million on savings accounts, $49.1 million on FHLBNY advances and $44.7 million on CDs.
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.
During 2022, net interest income increased by $22.3 million, provision for credit losses decreased by $839 thousand, 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. ​ The discussion of net interest income for the years ended December 31, 2024, 2023, and 2022 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.
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.
During 2023, non-interest income decreased $2.0 million from 2022, due primarily to a decrease of $2.9 million from net gain on sale of securities and other assets, partially offset by a $3.4 million increase in loan level derivative income. Non-Interest Expense. Non-interest expense was $226.5 million in 2024, $213.1 million in 2023, and $200.7 million in 2022.
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.
See "Part II - Item 5, Issuer Purchases of Equity Securities" for additional information about repurchases of common stock. 42 Table of Contents The Holding Company paid $7.3 million in cash dividends on its preferred stock during the years ended December 31, 2024 and 2023, respectively.
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.
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 business loans, multifamily residential and mixed use, non-owner-occupied commercial real estate loans, and ADC loans, or fifteen days late in connection with one-to-four family and consumer loans.
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.
The weighted average duration of our securities held-to-maturity approximated 5.1 years as of December 31, 2024 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 at the date indicated below: ​ ​ ​ ​ ​ ​ December 31, (In years) ​ 2024 Agency notes ​ 5.26 Corporate securities ​ 8.14 Pass-through MBS issued by GSEs and agency CMOs ​ 20.88 ​ 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, 2024 ​ ​ December 31, 2023 ​ ​ December 31, 2022 ​ ​ ​ ​ 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 ​ $ 1,927,909 16.5 % ​ 2.98 % ​ $ 2,335,490 22.2 % ​ 3.67 % ​ $ 2,260,101 22.0 % ​ 2.24 % CDs ​ 1,069,081 9.1 ​ 3.73 ​ ​ 1,607,683 15.3 ​ 4.43 ​ ​ 1,115,364 10.9 ​ 2.25 ​ Money market accounts ​ 4,198,784 36.0 ​ 3.01 ​ ​ 3,125,996 29.6 ​ 3.46 ​ ​ 2,532,270 24.7 ​ 1.50 ​ Interest-bearing checking accounts ​ 1,079,823 9.2 ​ 1.92 ​ ​ 515,987 4.9 ​ 0.77 ​ ​ 827,454 8.1 ​ 1.01 ​ Non-interest-bearing checking accounts ​ 3,410,544 29.2 ​ — ​ ​ 2,945,499 28.0 ​ — ​ ​ 3,519,218 34.3 ​ — ​ Totals ​ $ 11,686,141 100.00 % ​ 2.09 % ​ $ 10,530,655 100.00 % ​ 2.56 % ​ $ 10,254,407 100.00 % ​ 1.19 % ​ The weighted average maturity of our CDs at December 31, 2024 was 5.8 months, compared to 5.1 months at December 31, 2023. ​ Non-insured deposits (excluding collateralized deposits and deposits with pass through insurance) represented 31.2% and 28.9% of total deposits as of December 31, 2024 and 2023, respectively.
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.
The increased interest income on multifamily loans was primarily due to an increase of $420.4 million in the average balances of multifamily loans and a 60-basis point increase in the yield of such loans.
Additionally, at December 31, 2023, a line of credit totaling $2.01 billion was in place at the FRB secured by certain qualifying 1-4 family residential mortgage loans, construction loans and CRE loans with no amounts drawn. During the year ended December 31, 2023 and 2022, real estate loan originations totaled $885.5 million and $2.67 billion, respectively.
Additionally, at December 31, 2024, a line of credit totaling $3.04 billion was in place at the FRB secured by certain qualifying 1-4 family residential mortgage loans, construction loans and CRE loans with no amounts drawn. During the year ended December 31, 2024 and 2023, business loan originations totaled $371.2 million and $343.9 million, respectively.
The Bank is a member of American Financial Exchange (“AFX”), through which it may either borrow or lend funds on an overnight or short-term basis with other member institutions. The availability of funds changes daily. The Bank utilizes repurchase agreements as part of its borrowing policy to add liquidity.
The Bank is a member of American Financial Exchange (“AFX”), through which it may either borrow or lend funds on an overnight or short-term basis with other member institutions. The availability of funds changes daily.
The following table presents the weighted average contractual maturity of our securities available-for-sale: ​ ​ ​ ​ ​ December 31, ​ ​ 2023 Agency notes ​ 2.85 Treasury securities ​ 1.33 Corporate securities ​ 6.75 Pass-through MBS issued by U.S.
The following table presents the weighted average contractual maturity of our securities available-for-sale: ​ ​ ​ ​ ​ December 31, (In years) ​ 2024 Agency notes ​ 1.85 Corporate securities ​ 5.90 Pass-through MBS issued by U.S.
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.
Total securities decreased $152.8 million during the year ended December 31, 2024, to $1.32 billion at period end, primarily due to proceeds from principal payments, calls, maturities and sales of $621.6 million offset in part by purchases of $402.8 million and a decrease in unrealized losses of $66.0 million.
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.
The increased interest income on business loans was primarily due to an increase of $254.5 million in the average balances of business loans and a 45-basis point increase in yield of such loans in the period.
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.
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 Bank’s deposit flows are affected primarily by the pricing and marketing of its deposit products compared to its competitors, as well as the market performance of depositor investment alternatives such as the U.S. bond or equity markets.
It must additionally compete for deposit monies against the stock and bond markets, especially during periods of strong performance in those arenas. The Bank’s deposit flows are affected primarily by the pricing and marketing of its deposit products compared to its competitors, as well as the market performance of depositor investment alternatives such as the U.S. bond or equity markets.
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.
The increased interest income on business loans was primarily due to an increase of $240.2 million in the average balances of business loans and a 162-basis point increase in the yield of such loans.
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.
Total net loans held for investment increased $81.5 million during the year ended December 31, 2024, to $10.78 billion at period end. During the period, the Bank had originations of $570.9 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.
Stockholders’ equity increased $170.3 million during the year ended December 31, 2024, to $1.40 billion at period end, primarily due to $135.8 million in net proceeds raised in connection with a common equity offering, net income for the period of $29.1 million and a decrease in accumulated other comprehensive loss of $46.6 million, offset in part by common stock dividends of $40.3 million and preferred stock dividends of $7.3 million.
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.
Income tax expense decreased $18.6 million during 2023 compared to 2022, primarily as a result of $75.0 million of lower pre-tax income during 2023. ​ The Company’s consolidated tax rate was 43.5%, 29.8% and 28.0% in 2024, 2023, and 2022, respectively. 30 Table of Contents ​ Comparison of Financial Condition at December 31, 2024 and December 31, 2023 Assets.
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.
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.
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 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, ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ 2022 ​ ​ ​ ​ ​ ​ 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 Business loans ​ $ 42,898 ​ 25.08 % ​ $ 35,962 ​ 21.44 % ​ ​ 47,029 ​ 20.93 ​ One-to-four family residential and cooperative/condominium apartment ​ ​ 9,501 ​ 8.75 ​ ​ ​ 6,813 ​ 8.24 ​ ​ ​ 5,969 ​ 7.32 ​ Multifamily residential and residential mixed-use ​ 11,946 ​ 35.16 ​ ​ ​ 7,237 ​ 37.31 ​ ​ ​ 8,360 ​ 38.11 ​ Non-owner-occupied commercial real estate ​ 21,876 ​ 29.72 ​ ​ ​ 19,623 ​ 31.39 ​ ​ ​ 20,153 ​ 31.40 ​ ADC ​ 2,323 ​ 1.25 ​ ​ ​ 1,989 ​ 1.57 ​ ​ ​ 1,723 ​ 2.17 ​ Other loans ​ 207 ​ 0.04 ​ ​ ​ 119 ​ 0.05 ​ ​ ​ 273 ​ 0.07 ​ Total ​ $ 88,751 100.00 % ​ $ 71,743 100.00 % ​ $ 83,507 100.00 % ​ 38 Table of Contents 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) 2024 2023 2022 Total loans outstanding at end of period (1) $ 10,869,328 ​ $ 10,766,837 ​ $ 10,566,831 ​ Average total loans outstanding during the period (2) 10,821,821 ​ 10,764,598 ​ 9,747,887 ​ Allowance for credit losses balance at end of period 88,751 ​ 71,743 ​ 83,507 ​ Allowance for credit losses to total loans at end of period 0.82 % 0.67 % 0.79 % Non-performing loans to total loans at end of period ​ 0.46 ​ ​ 0.27 ​ ​ 0.32 ​ Allowance for credit losses to total non-performing loans at end of period 179.37 ​ 246.55 ​ 243.91 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ratio of net charge-offs to average loans outstanding during the period: ​ ​ ​ ​ ​ ​ ​ ​ ​ Business loans ​ 0.30 % ​ 1.37 % ​ 0.77 % One-to-four family residential and cooperative/condominium apartment ​ — ​ ​ — ​ ​ — ​ Multifamily residential and residential mixed-use ​ 0.12 ​ ​ — ​ ​ — ​ Non-owner-occupied commercial real estate ​ 0.21 ​ ​ — ​ ​ — ​ ADC ​ — ​ ​ — ​ ​ — ​ Other loans ​ 1.80 ​ ​ 4.34 ​ ​ 0.42 ​ Total ​ 0.18 ​ ​ 0.14 ​ ​ 0.07 ​ (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 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 had $608.0 million of FHLBNY advances outstanding at December 31, 2024, and $1.31 billion at December 31, 2023. The Bank maintained sufficient collateral, as defined by the FHLBNY (principally in the form of real estate loans), to secure such advances.
The increased interest income from short-term investments was primarily due to a 376-basis point increase in yield and an increase of $193.8 million in the average balances of such short-term investments in the period. Increased yields across interest-earning assets were a result of the rising interest rate environment.
The increased interest income from short-term investments was primarily due to an increase of $57.1 million in the average balances of short-term investments and a 9-basis point increase in yield of such investments in the period.
There were no transfers to or from securities held-to-maturity for the year ended ended December 31, 2023. Liabilities.
There were no transfers to or from securities held-to-maturity for the year ended December 31, 2024 or 2023. BOLI decreased $59.2 million during the year ended December 31, 2024, to $290.7 million.
On a daily basis, appropriate senior management receives a current cash position report and one-week forecast to ensure that all short-term obligations are timely satisfied and that adequate liquidity exists to fund future activities. Reports detailing the Bank’s liquidity reserves are presented to appropriate senior management on a monthly basis, and the Board of Directors at each of its meetings.
On a daily basis, appropriate senior management receives a current cash position report and 30-day forecast to ensure that all short-term obligations are timely satisfied, and that adequate liquidity exists to fund future activities.
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.
Total liabilities increased $547.0 million during the year ended December 31, 2024, to $12.96 billion at period end, primarily due to an increase in deposits of $1.16 billion, an increase in subordinated debt of $72.1 million and an increase in other short-term borrowings of $50.0 million, partially offset by a decrease in FHLBNY advances of $705.0 million, and a decrease in derivative liabilities of $12.9 million.
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. Comparison of Operating Results For The Years Ended December 31, 2024, 2023 and 2022 General.
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 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 operations.
The Bank had $1.88 billion and $1.90 billion of public funds collateralized by securities and Municipal Letters of Credit (“MULOC”), and $680.8 million and $615.6 million of deposits with pass through insurance as of December 31, 2023, and 2022, respectively. ​ The following table sets forth the amount of time deposits in uninsured accounts by maturity, all of which are CDs at December 31, 2023: ​ ​ ​ ​ ​ (In thousands) ​ ​ Three months or less ​ $ 97,664 Over three through six months ​ ​ 95,112 Over six through twelve months ​ ​ 53,347 Over twelve months ​ ​ 26,672 Total ​ $ 272,795 ​ As of December 31, 2023, the portion of uninsured time deposits in excess of the $250,000 FDIC insurance limit was $115.3 million. ​ Our Board of Directors authorized the Bank to accept brokered deposits up to an aggregate limit of 10.0% of total assets.
The Bank had $1.89 billion and $1.88 billion of public funds collateralized by securities and Municipal Letters of Credit (“MULOC”), and $1.55 billion and $680.8 million of deposits with pass through insurance as of December 31, 2024, and 2023, respectively. 40 Table of Contents ​ The following table presents the time deposits with balances exceeding the $250,000 FDIC insurance limit by maturity at December 31, 2024: ​ ​ ​ ​ ​ (Dollars in thousands) ​ ​ Three months or less ​ $ 92,786 Over three through six months ​ ​ 73,233 Over six through twelve months ​ ​ 44,118 Over twelve months ​ ​ 24,432 Total ​ $ 234,569 ​ As of December 31, 2024, the portion of uninsured time deposits in excess of the $250,000 FDIC insurance limit was $93.3 million. ​ Our Board of Directors authorized the Bank to accept brokered deposits up to an aggregate limit of 10.0% of total assets.
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.
GSEs and agency collateralized mortgage obligations ("CMOs") ​ 18.24 State and municipal obligations ​ 3.18 ​ Securities held-to-maturity ​ 39 Table of Contents The following table presents the amortized cost, fair value and weighted average yield of our securities held-to-maturity at December 31, 2024, 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 ​ 44,898 ​ 42,359 2.64 ​ Due after 5 years but within 10 years ​ 180,658 ​ 157,523 2.71 ​ Due after ten years ​ 411,783 ​ 352,395 2.98 ​ Total ​ $ 637,339 ​ $ 552,277 2.88 % ​ The entire carrying amount of each security at December 31, 2024 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.
A forecast of cash flow data for the upcoming 12 months is presented to the Board of Directors on an annual basis. ​ Liquidity is primarily needed to meet customer borrowing commitments and deposit withdrawals, either on demand or on contractual maturity, to repay borrowings as they mature, to fund current and planned expenditures and to make new loans and investments as opportunities arise.
Given recent banking industry events, management monitors the level of uninsured deposits on a regular basis. ​ Liquidity is primarily needed to meet customer borrowing commitments and deposit withdrawals, either on demand or on contractual maturity, to repay borrowings as they mature, to fund current and planned expenditures and to make new loans and investments as opportunities arise.
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.
The Company had no outstanding securities sold under agreements to repurchase (“repurchase agreements”) at December 31, 2024 or December 31, 2023. 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.
The increase in interest expense on FHLBNY advances primarily reflects a $999.0 million increase in the average balance of FHLBNY advances and a 169-basis point increase in rates paid on such advances.
The increase in interest expense on subordinated debt primarily reflects a $36.5 million increase in the average balances of subordinated debt and a 71-basis point increase in rates paid on such debt.
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.
During 2024, non-interest income decreased by $40.2 million, provision for credit losses increased by $33.3 million and non-interest expense increased by $13.4 million, partially offset by an increase in net interest income of $1.5 million and a decrease in income tax expense of $18.4 million.
Loan Restructurings The Company adopted ASU No. 2022-02 on January 1, 2023, which eliminates the recognition and measurement of a TDR. Due to the removal of the TDR designation, the Company applies the loan refinancing and restructuring guidance to determine whether a modification or other forms of restructuring result in a new loan or a continuation of an existing loan.
Loan Restructurings The Company applies the loan refinancing and restructuring guidance to determine whether a modification or other forms of restructuring result in a new loan or a continuation of an existing loan.
Income tax expense decreased $18.6 million during 2023 compared to 2022, primarily as a result of $75.0 million of lower pre-tax income during 2023.
Income tax expense was $22.4 million in 2024, $40.8 million in 2023, and $59.4 million in 2022. Income tax expense decreased $18.4 million during 2024 compared to 2023, primarily as a result of $85.4 million of lower pre-tax income during 2024.
The increase in interest expense on FHLBNY advances was primarily due to a 203-basis point increase in rates paid on FHLBNY wholesale borrowings, partially offset by a $6.4 million decrease in the average balance of such borrowings.
The increase in interest expense on CDs was primarily due to a 58-basis point increase in rates paid on CDs, offset by a decrease of $93.1 million in the average balances of such deposits in the period.
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.
Total deposits (including mortgage escrow deposits) increased $1.16 billion during the year ended December 31, 2024 compared to an increase of $276.2 million during the year ended December 31, 2023. Within deposits, core deposits ( i.e., non-CDs) increased $1.74 billion during the year ended December 31, 2024 and decreased $216.1 million during the year ended December 31, 2023.
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 increased interest income from short-term investments was primarily due to an increase of $193.8 million in the average balances of short-term investments and a 376-basis point increase in the yield of such investments. 29 Table of Contents Interest Expense. Interest expense was $332.1 million in 2024, $292.8 million in 2023, and $59.4 million in 2022.
Most credit facilities typically require an annual review of the exposure and borrowers are required to submit annual financial reporting and loans are structured with financial covenants to indicate expected performance levels. Smaller C&I loans are monitored based on performance and the ability to draw against a credit line is curtailed if there are any indications of credit deterioration.
The C&I portfolio, which is within our business loans, is actively managed by our lenders. Most credit facilities typically require an annual review of the exposure and borrowers are required to submit annual financial reporting and loans are structured with financial covenants to indicate expected performance levels.
These critical accounting estimates involve a significant degree of complexity and require management to make difficult and subjective judgments which often necessitate assumptions or estimates about highly uncertain matters. The use of different judgments, assumptions or estimates could result in material variations in the Company’s consolidated results of operations or financial condition.
Note 1 Summary of Significant Accounting Policies (page 53), to the Company’s Audited Consolidated Financial Statement for the year ended December 31, 2024 contains a summary of significant accounting policies. These critical accounting estimates involve a significant degree of complexity and require management to make difficult and subjective judgments which often necessitate assumptions or estimates about highly uncertain matters.
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.
The increase in interest expense on savings accounts was primarily due to a 52-basis point increase in rates paid on saving accounts, offset by a decrease of $133.9 million in the average balances of such deposits in the period.
(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.
(2) Includes mortgage escrow deposits. (3) Amounts are net of deferred origination costs/(fees) and allowance for credit losses, and include loans held for sale. (4) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (5) Net interest margin represents net interest income divided by average interest-earning assets.
Policies with respect to the methodologies it uses to determine the allowance for credit losses on loans held for investment and fair value of loans acquired in a business combinations are critical accounting policies because they are important to the presentation of the Company’s consolidated financial condition and results of operations.
Policies with respect to the methodologies used to determine the allowance for credit losses on loans held for investment are important to the presentation of the Company’s consolidated financial condition and results of operations. The use of different judgments, assumptions or estimates could result in material variations in the Company’s consolidated results of operations or financial condition.
The increase in interest expense on money market accounts was primarily due to an 18-basis point increase in rates paid on money market accounts, partially offset by a $520.6 million decrease in the average balance of such accounts. ​ Provision for Credit Losses.
The increase in interest expense on interest-bearing checking accounts was primarily due to a 60-basis point increase in rates paid on interest-bearing checking accounts, offset by a decrease of $44.2 million in the average balances of such deposits in the period.
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.
The net proceeds of the offering, after deducting underwriting discounts and commissions, and offering expenses, were $135.8 million. 31 Table of Contents 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) ​ 2024 ​ ​ 2023 ​ ​ 2022 ​ Business loans (1) ​ $ 2,725,726 ​ 25.1 % ​ $ 2,308,171 ​ 21.4 % ​ $ 2,211,857 ​ 20.9 % One-to-four family residential and cooperative/condominium apartment ​ ​ 951,528 ​ 8.8 ​ ​ ​ 887,555 ​ 8.2 ​ ​ ​ 773,321 ​ 7.3 ​ Multifamily residential and residential mixed-use ​ ​ 3,820,283 ​ 35.1 ​ ​ ​ 4,017,176 ​ 37.3 ​ ​ ​ 4,026,826 ​ 38.1 ​ Non-owner-occupied commercial real estate ​ ​ 3,230,535 ​ 29.7 ​ ​ ​ 3,379,667 ​ 31.4 ​ ​ ​ 3,317,485 ​ 31.4 ​ Acquisition, development, and construction ("ADC") ​ ​ 136,172 ​ 1.3 ​ ​ ​ 168,513 ​ 1.6 ​ ​ ​ 229,663 ​ 2.2 ​ Other loans ​ ​ 5,084 ​ 0.0 ​ ​ ​ 5,755 ​ 0.1 ​ ​ ​ 7,679 ​ 0.1 ​ Total ​ ​ 10,869,328 ​ 100.0 % ​ ​ 10,766,837 ​ 100.0 % ​ ​ 10,566,831 ​ 100.0 % Fair value hedge basis point adjustments (2) ​ ​ 2,615 ​ ​ ​ ​ ​ 6,591 ​ ​ ​ ​ ​ — ​ ​ ​ Total loans, net of fair value hedge basis point adjustments ​ ​ 10,871,943 ​ ​ ​ ​ ​ 10,773,428 ​ ​ ​ ​ ​ 10,566,831 ​ ​ ​ Allowance for credit losses ​ ​ (88,751) ​ ​ ​ ​ ​ (71,743) ​ ​ ​ ​ ​ (83,507) ​ ​ ​ Loans held for investment, net ​ $ 10,783,192 ​ ​ ​ ​ ​ 10,701,685 ​ ​ ​ ​ ​ 10,483,324 ​ ​ ​ (1) Business loans include C&I loans and owner-occupied commercial real estate loans.
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.
Assets totaled $14.35 billion at December 31, 2024, $717.3 million above their level at December 31, 2023, primarily due to an increase in cash and due from banks of $826.0 million, an increase in the loan portfolio of $81.5 million and an increase in other assets of $62.8 million, partially offset by a decrease in total securities of $152.8 million, a decrease in BOLI of $59.2 million and a decrease in restricted stock of $29.6 million.
(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.
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, 2024, categorized by remaining period to contractual maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Amortized ​ Fair ​ Average (Dollars in thousands) Cost Value Yield Due within 1 year ​ $ 6,717 ​ $ 6,597 1.13 % Due after 1 year but within 5 years ​ 158,420 ​ 153,169 3.98 ​ Due after 5 years but within 10 years ​ 165,772 ​ 157,104 4.73 ​ Due after ten years ​ 403,225 ​ 373,823 3.74 ​ Total ​ $ 734,134 ​ $ 690,693 3.99 % ​ The entire carrying amount of each security at December 31, 2024 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.
Adjustments to the quantitative results are made using qualitative factors, which are subjective and require significant management judgment .
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, which are subjective and require significant management judgment.

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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 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.
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. 44 Table of Contents The analysis that follows presents, as of December 31, 2024 and 2023, the estimated EVE at both the Pre-Shock Scenario and the -200 Basis Point Rate, -100 Basis Point Rate, +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ December 31, 2023 ​ ​ ​ Dollar Percentage ​ ​ ​ ​ Dollar Percentage (Dollars in thousands) ​ EVE ​ Change ​ Change ​ ​ EVE ​ Change ​ Change Rate Shock Scenarios ​ ​ + 200 Basis Points ​ $ 1,862,712 ​ $ 101,644 ​ 5.8 % ​ $ 1,414,548 ​ $ 79,745 ​ 6.0 % + 100 Basis Points ​ ​ 1,843,160 ​ ​ 82,092 4.7 % ​ ​ 1,375,777 ​ ​ 40,974 3.1 % Pre-Shock Scenario ​ 1,761,068 ​ — — ​ ​ 1,334,803 ​ — — ​ - 100 Basis Points ​ ​ 1,636,011 ​ ​ (125,057) ​ (7.1) % ​ ​ 1,247,956 ​ ​ (86,847) ​ (6.5) % - 200 Basis Points ​ ​ 1,439,251 ​ ​ (321,817) ​ (18.3) % ​ ​ 1,112,110 ​ ​ (222,693) ​ (16.7) % ​ The Company’s Pre-Shock Scenario EVE increased from $1.33 billion at December 31, 2023, to $1.76 billion at December 31, 2024.
Our Asset and Liability Committee evaluates periodically, but no less than four times annually, the impact of changes in market interest rates on assets and liabilities, net interest margin, capital and liquidity. Risk assessments are governed by policies and limits established by senior management, which are reviewed and approved by the Board of Directors at least annually.
Our Asset and Liability Management Committee evaluates periodically, but no less than four times annually, the impact of changes in market interest rates on assets and liabilities, net interest margin, capital and liquidity. Risk assessments are governed by policies and limits established by senior management, which are reviewed and approved by the Board of Directors at least annually.
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.
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, 2024, 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 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.
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.
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 assuming gradual changes in interest rates over a 12-month period beginning December 31, 2024, for the given rate scenarios: ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage Change in Net Interest Income ​ Gradual Change in Interest rates of: ​ Year-One ​ ​ Year-Two ​ + 200 Basis Points ​ 0.8 % ​ 4.5 % + 100 Basis Points ​ 0.5 % ​ 2.5 % - 100 Basis Points ​ 1.6 % ​ 0.6 % - 200 Basis Points ​ 2.4 % ​ (0.8) % ​ Management also examines the potential impact to net interest income by simulating the impact of instantaneous changes to interest rates.
The economic environment continually presents uncertainties as to future interest rate trends. The Asset and Liability Committee regularly utilizes a model that projects net interest income based on increasing or decreasing interest rates, in order to be better able to respond to changes in interest rates.
The economic environment continually presents uncertainties as to future interest rate trends. 43 Table of Contents The Asset and Liability Management Committee regularly utilizes a model that projects net interest income based on increasing or decreasing interest rates, in order to be better able to respond to changes in 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 ​ 0.4% ​ 5.2% + 100 Basis Points ​ 0.3% ​ 2.8% - 100 Basis Points ​ 0.9% ​ (0.6)% ​ ​ 44 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 ​ 3.4 % ​ 7.2 % + 100 Basis Points ​ 1.8 % ​ 3.9 % - 100 Basis Points ​ 0.9 % ​ (1.1) % - 200 Basis Points ​ 0.4 % ​ (4.8) % ​ ​ 45 Table of Contents ​
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.
At December 31, 2024, $273.1 million, or 20.6%, of our available-for-sale and held-to-maturity securities had adjustable interest rates. At December 31, 2024, $7.98 billion, or 73.4%, 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.
Such results are utilized in determining estimates of deposit decay rates in the valuation model. The Company also generates a series of spot discount rates that are integral to the valuation of the projected monthly cash flows of its assets and liabilities.
The Company also generates a series of spot discount rates that are integral to the valuation of the projected monthly cash flows of its assets and liabilities.
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.
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).
In addition, the Company considers the amount of fee protection inherent in the loan portfolio when estimating future repayment cash flows. Regarding deposit decay rates, the Company tracks and analyzes the decay rate of its deposits over time, with the assistance of a reputable third-party, and over various interest rate scenarios.
Regarding deposit decay rates, the Company tracks and analyzes the decay rate of its deposits over time, with the assistance of a reputable third-party, and over various interest rate scenarios. Such results are utilized in determining estimates of deposit decay rates in the valuation model.
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.
The primary factors contributing to the increase in EVE is an increase in the value of the Bank’s non-maturity deposit base as well as down streaming some of the proceeds of a common stock offering to the Bank. ​ The Company’s EVE in the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios increased from $1.38 billion and $1.41 billion, respectively, at December 31, 2023, to $1.84 billion and $1.86 billion, respectively, at December 31, 2024.
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.
In the -100 Basis Point Rate and -200 Basis Point Rate Shock Scenarios the Company’s EVE increased from $1.25 billion and $1.11 billion, respectively, at December 31, 2023, to $1.64 billion and $1.44 billion, respectively, at December 31, 2024. Income Simulation Analysis .
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Management reports the net interest income simulation results to the Company’s Board of Directors on a quarterly basis.

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