Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 28, 2024 | Jun. 30, 2023 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-40589 | ||
Entity Registrant Name | NORTHEAST COMMUNITY BANCORP, INC. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 86-3173858 | ||
Entity Address, Address Line One | 325 Hamilton Avenue | ||
Entity Address, City or Town | White Plains | ||
Entity Address State Or Province | NY | ||
Entity Address, Postal Zip Code | 10601 | ||
City Area Code | 914 | ||
Local Phone Number | 684-2500 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | NECB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 195.7 | ||
Entity Common Stock, Shares Outstanding | 14,065,796 | ||
Auditor Firm ID | 74 | ||
Auditor Name | S.R. Snodgrass, P.C. | ||
Auditor Location | Cranberry Township, Pennsylvania | ||
Entity Central Index Key | 0001847398 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and amounts due from depository institutions | $ 13,394,000 | $ 13,210,000 |
Interest-bearing deposits | 55,277,000 | 82,098,000 |
Total cash and cash equivalents | 68,671,000 | 95,308,000 |
Certificates of deposit | 100,000 | 100,000 |
Equity securities | 18,102,000 | 18,041,000 |
Securities available-for-sale, at fair value | 0 | 1,000 |
Securities held-to-maturity (net of allowance for credit losses of $136, fair value of $13,126 and $22,865, respectively) | 15,860,000 | 26,395,000 |
Loans receivable | 1,217,321,000 | |
Loans receivable | 1,586,721,000 | 1,217,321,000 |
Deferred loan costs, net | 372,000 | |
Deferred loan costs, net | 176,000 | |
Allowance for credit losses | (5,474,000) | |
Allowance for credit losses | (5,093,000) | (5,474,000) |
Net loans | 1,212,219,000 | |
Net loans | 1,581,804,000 | |
Premises and equipment, net | 25,452,000 | 26,063,000 |
Investments in restricted stock, at cost | 929,000 | 1,238,000 |
Bank owned life insurance | 25,082,000 | 25,896,000 |
Accrued interest receivable | 12,311,000 | 8,597,000 |
Goodwill | 0 | 200,000 |
Real estate owned | 1,456,000 | 1,456,000 |
Property held for investment | 1,407,000 | 1,444,000 |
Right of Use Assets - Operating | 4,566,000 | 2,312,000 |
Right of Use Assets - Financing | 351,000 | 355,000 |
Other assets | 8,044,000 | 5,338,000 |
Total assets | 1,764,135,000 | 1,424,963,000 |
Deposits: | ||
Non-interest bearing | 300,184,000 | 376,302,000 |
Interest bearing | 1,099,852,000 | 745,653,000 |
Total deposits | 1,400,036,000 | 1,121,955,000 |
Advance payments by borrowers for taxes and insurance | 2,020,000 | 2,369,000 |
Borrowings | 64,000,000 | 21,000,000 |
Lease Liability - Operating | 4,625,000 | 2,363,000 |
Lease Liability - Financing | 571,000 | 533,000 |
Accounts payable and accrued expenses | 13,558,000 | 14,754,000 |
Total liabilities | 1,484,810,000 | 1,162,974,000 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding | ||
Common stock, $0.01 par value; 75,000,000 shares authorized; 14,144,856 shares and 16,049,454 shares issued and outstanding, respectively | 142,000 | 161,000 |
Additional paid-in capital | 109,924,000 | 136,434,000 |
Unearned Employee Stock Ownership Plan ("ESOP") shares | (6,563,000) | (7,432,000) |
Retained earnings | 175,505,000 | 132,670,000 |
Accumulated other comprehensive income | 317,000 | 156,000 |
Total stockholders' equity | 279,325,000 | 261,989,000 |
Total liabilities and stockholders' equity | $ 1,764,135,000 | $ 1,424,963,000 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated Statements of Financial Condition | ||
Securities held-to-maturity, allowance for credit losses | $ 136 | $ 136 |
Securities held-to-maturity, fair value | $ 13,126 | $ 22,865 |
Preferred stock, par value (in $ per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in $ per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 14,144,856 | 16,049,454 |
Common stock, shares outstanding (in shares) | 14,144,856 | 16,049,454 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INTEREST INCOME: | ||
Loans | $ 127,486,000 | $ 69,992,000 |
Interest-earning deposits | 4,143,000 | 1,260,000 |
Securities | 859,000 | 750,000 |
Total Interest Income | 132,488,000 | 72,002,000 |
INTEREST EXPENSE: | ||
Deposits | 34,181,000 | 7,544,000 |
Borrowings | 1,078,000 | 546,000 |
Financing lease | 38,000 | 37,000 |
Total Interest Expense | 35,297,000 | 8,127,000 |
Net Interest Income | 97,191,000 | 63,875,000 |
Provision for credit loss | 972,000 | 439,000 |
Net Interest Income after Provision for Credit Losses | 96,219,000 | 63,436,000 |
NON-INTEREST INCOME: | ||
Other loan fees and service charges | 1,891,000 | 1,994,000 |
(Loss) gain on disposition of equipment | (18,000) | 98,000 |
Earnings on bank owned life insurance | 1,013,000 | 604,000 |
Investment advisory fees | 458,000 | 474,000 |
Realized and unrealized gain (loss) on equity securities | 294,000 | (1,573,000) |
Other | 105,000 | 86,000 |
Total Non-Interest Income | 3,743,000 | 1,683,000 |
NON-INTEREST EXPENSES: | ||
Salaries and employee benefits | 18,839,000 | 15,549,000 |
Occupancy expense | 2,595,000 | 2,428,000 |
Equipment | 1,055,000 | 1,107,000 |
Outside data processing | 2,210,000 | 1,886,000 |
Advertising | 521,000 | 299,000 |
Impairment loss on goodwill | 451,000 | |
Loss on disposition of business | 138,000 | |
Real estate owned expense | 93,000 | 623,000 |
Other | 9,770,000 | 8,347,000 |
Total Non-Interest Expenses | 35,221,000 | 30,690,000 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 64,741,000 | 34,429,000 |
PROVISION FOR INCOME TAXES | 18,465,000 | 9,586,000 |
NET INCOME | $ 46,276,000 | $ 24,843,000 |
EARNINGS PER COMMON SHARE - BASIC (in $ per share) | $ 3.32 | $ 1.61 |
EARNINGS PER COMMON SHARE - DILUTED (in $ per share) | $ 3.32 | $ 1.58 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC (in shares) | 13,930 | 15,433 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED (in shares) | 13,936 | 15,726 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Consolidated Statements of Comprehensive Income | |||
Net Income (Loss) | $ 46,276 | $ 24,843 | |
Reclassification adjustments out of accumulated other comprehensive income: | |||
Amortization of actuarial (gain) loss | [1] | (32) | 27 |
Actuarial gain arising during period | 116 | 353 | |
Total | 84 | 380 | |
Income tax effect | (24) | ||
Tax adjustment - pension liability | [2] | 101 | (85) |
Total other comprehensive income | 161 | 295 | |
Total Comprehensive Income | $ 46,437 | $ 25,138 | |
[1] Amounts are included in other expenses in the audited consolidated statements of income as part of net periodic pension cost. See Note 17 for further information. Amounts are included in provision for income taxes in the audited consolidated statements of income. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid- in Capital | Unearned ESOP Shares | Retained Earnings Cumulative effect of adoption of ASU 2016-13 | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative effect of adoption of ASU 2016-13 | Total | |
Balance at beginning of period at Dec. 31, 2021 | $ 164 | $ 145,335 | $ (8,301) | $ 114,323 | $ (139) | $ 251,382 | |||
Balance at beginning of period (shares) at Dec. 31, 2021 | 16,377,936 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net Income (Loss) | 24,843 | 24,843 | |||||||
Other comprehensive income | 295 | 295 | |||||||
Cash dividend declared | (6,496) | (6,496) | |||||||
Stock Repurchases | $ (7) | (9,311) | (9,318) | ||||||
Stock Repurchases (shares) | (680,519) | ||||||||
Restricted stock award | $ 4 | (4) | |||||||
Restricted stock award (shares) | 352,037 | ||||||||
Compensation expense related to restricted stock awards | 116 | 116 | |||||||
Compensation expense related to stock options | 92 | 92 | |||||||
Pension liability | [1] | (85) | |||||||
ESOP shares earned | 206 | 869 | 1,075 | ||||||
Balance at end of period at Dec. 31, 2022 | $ 161 | 136,434 | (7,432) | 132,670 | 156 | 261,989 | |||
Balance at end of period (shares) at Dec. 31, 2022 | 16,049,454 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net Income (Loss) | 46,276 | 46,276 | |||||||
Other comprehensive income | 161 | 161 | |||||||
Cash dividend declared | (3,342) | (3,342) | |||||||
Stock Repurchases | $ (19) | (28,691) | (28,710) | ||||||
Stock Repurchases (shares) | (1,909,476) | ||||||||
Restricted stock award (shares) | 4,878 | ||||||||
Compensation expense related to restricted stock awards | 968 | 968 | |||||||
Compensation expense related to stock options | 768 | 768 | |||||||
Pension liability | [1] | 101 | |||||||
ESOP shares earned | 445 | 869 | 1,314 | ||||||
Balance at end of period at Dec. 31, 2023 | $ 142 | $ 109,924 | $ (6,563) | $ (99) | $ 175,505 | $ 317 | $ (99) | $ 279,325 | |
Balance at end of period (shares) at Dec. 31, 2023 | 14,144,856 | ||||||||
[1] Amounts are included in provision for income taxes in the audited consolidated statements of income. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Changes in Stockholders' Equity | ||
Cash dividend declared per share | $ 0.24 | $ 0.42 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 46,276,000 | $ 24,843,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of securities premiums and discounts, net | 20,000 | 27,000 |
Provision for credit losses | 972,000 | 439,000 |
Depreciation | 1,219,000 | 1,246,000 |
Net amortization of deferred loan fees and costs | 215,000 | 509,000 |
Deferred income tax benefit | (367,000) | (1,308,000) |
Realized and unrealized (gain) loss recognized on equity securities | (294,000) | 1,573,000 |
Impairment of goodwill | 451,000 | |
Impairment of real estate owned | 540,000 | |
Earnings on bank owned life insurance | (1,013,000) | (604,000) |
Loss on disposition of business | 138,000 | |
Loss (gain) on dispositions of premises and equipment | 18,000 | (98,000) |
ESOP compensation expense | 1,314,000 | 1,075,000 |
Compensation expense related to stock options | 768,000 | 92,000 |
Compensation expense related to restricted stock | 968,000 | 116,000 |
Increase in accrued interest receivable | (3,714,000) | (4,314,000) |
Decrease in other assets | 149,000 | 1,269,000 |
Decrease in accounts payable - loan closing | (2,614,000) | (91,000) |
(Decrease) increase in accounts payable and accrued expenses | (1,220,000) | 1,774,000 |
Net Cash Provided by Operating Activities | 42,835,000 | 27,539,000 |
Cash Flows from Investing Activities: | ||
Net increase in loans | (399,396,000) | (257,844,000) |
Proceeds from sale of loans | 29,666,000 | 12,770,000 |
Principal repayments on securities available-for-sale | 1,000 | |
Principal repayments on securities held-to-maturity | 11,183,000 | 1,495,000 |
Purchase of securities held-to-maturity | (806,000) | (10,038,000) |
Proceeds from bank owned life insurance | 1,827,000 | |
Purchase of FHLB stock | (6,000) | |
Redemption of FHLB stock | 315,000 | 331,000 |
Purchases of premises and equipment | (626,000) | (3,304,000) |
Net Cash Used in Investing Activities | (357,842,000) | (256,590,000) |
Cash Flows from Financing Activities: | ||
Net increase in deposits | 278,081,000 | 194,791,000 |
Proceeds from FRB borrowing | 50,000,000 | |
Repayment of FHLB of NY advances | (7,000,000) | (7,000,000) |
Stock repurchases | (28,710,000) | (9,318,000) |
Increase (decrease) in advance payments by borrowers for taxes and insurance | (349,000) | 485,000 |
Cash dividends paid | (3,652,000) | (6,868,000) |
Net Cash Provided by Financing Activities | 288,370,000 | 172,090,000 |
Net Decrease in Cash and Cash Equivalents | (26,637,000) | (56,961,000) |
Cash and Cash Equivalents - Beginning | 95,308,000 | 152,269,000 |
Cash and Cash Equivalents - Ending | 68,671,000 | 95,308,000 |
Supplementary Cash Flows Information: | ||
Income taxes paid | 20,721,000 | 9,195,000 |
Interest paid | 34,853,000 | 8,012,000 |
Supplementary Disclosure of Non-Cash Investing and Financing Activities: | ||
Recognition of right of use asset - operating | 4,372,000 | 289,000 |
Recognition of lease liability - operating | 4,372,000 | 289,000 |
Dividends declared and not paid | 849,000 | $ 971,000 |
Adoption of ASC 326 | $ 99,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies The following is a description of the Company’s business and significant accounting and reporting policies: Nature of Business: Northeast Community Bancorp, Inc. (the “Company”) is a Maryland corporation that was incorporated in May 2021 to be the successor to NorthEast Community Bancorp, Inc., a federally chartered corporation (the “Mid-Tier Holding Company”), upon completion of the second-step conversion of NorthEast Community Bank (the “Bank”) from the two-tier mutual holding company structure to the stock holding company structure. NorthEast Community Bancorp, MHC was the former mutual holding company for the Mid-Tier Holding Company prior to the completion of the second-step conversion. In conjunction with the second-step conversion, each of NorthEast Community Bancorp, MHC and the Mid-Tier Holding Company merged out of existence and now cease to exist. The Bank is a New York State-chartered savings bank and the Company’s primary activity is the ownership and operation of the Bank. The Bank is headquartered in White Plains, New York. The Bank was founded in 1934 and is a community oriented financial institution dedicated to serving the financial services needs of individuals and businesses within its market area. The Bank currently conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex and Norfolk Counties in Massachusetts and three loan production offices located in White Plains, New York, New City, New York and Danvers, Massachusetts. The Bank’s principal business consists of originating primarily construction loans and, to a lesser extent, commercial and industrial loans, and multifamily and mixed-use residential real estate loans and non-residential real estate loans. The Bank offers a variety of retail deposit products to the general public in the areas surrounding its main office and its branch offices, with interest rates that are competitive with those of similar products offered by other financial institutions operating in its market area. The Bank also utilizes borrowings as a source of funds. The Bank’s revenues are derived primarily from interest on loans and, to a lesser extent, interest on investment securities and mortgage-backed securities. The Bank also generates revenues from other income including deposit fees, service charges and investment advisory fees. The Bank also offers investment advisory and financial planning services under the name Harbor West Wealth Management Group, a division of the Bank, through a networking arrangement with a registered broker-dealer and investment advisor. The agreement to sell all the Bank’s assets relating to Harbor West Wealth Management Group to a third party was executed in December 2023, with the transaction closing in January 2024. New England Commercial Properties LLC (“NECP”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2007 to facilitate the purchase or lease of real property by the Bank. New England Commercial Properties, LLC currently owns one foreclosed property located in Pennsylvania. NECB Financial Services Group, LLC (“NECB Financial”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in the third quarter of 2012 as a complement to Harbor West Wealth Management Group to sell life insurance and fixed rate annuities. NECB Financial is licensed in New York State. We terminated our license in Connecticut on February 22, 2024 due to the sale of all the Bank’s assets relating to Harbor West Wealth Management Group to a third party in January 2024. Note 1 - Summary of Significant Accounting Policies (continued) 72 West Eckerson LLC (“72 West Eckerson”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2015 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch locations in Spring Valley, New York and Monroe, New York. 166 Route 59 Realty LLC (“166 Route 59 Realty”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch located in Airmont, New York. 3 Winterton Realty LLC, a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the property for a Bank branch located in Bloomingburg, New York. Principles of Consolidation: The consolidated financial statements include the accounts of the Company, the Bank, NECP, NECB Financial, 72 West Eckerson, 166 Route 59 Realty, and 3 Winterton Realty LLC (collectively the “Company”) and have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant inter-company accounts and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company and its subsidiaries conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-K and Article 10 of Regulation S-X. When necessary, certain reclassifications were made to prior year amounts to conform with current year presentation. Use of Estimates: The preparation of consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect certain recorded amounts and disclosures. Accordingly, actual results could differ from those estimates. The most significant estimate pertains to the allowance for credit losses. The borrowers’ abilities to meet contractual obligations and collateral value are the most significant assumptions used to arrive at the estimate. The risks associated with such estimates arise when unforeseen conditions affect the borrowers’ abilities to meet the contractual obligations of the loan and result in a decline in the value of the supporting collateral. Such unforeseen changes may have an adverse effect on the consolidated results of operations and financial position of the Company. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Cash and Cash Equivalents: Cash and cash equivalents include cash and amounts due from depository institutions and interest-bearing deposits in other banks, all with original maturities of 90 days or less. Certificates of Deposit: Certificates of deposit are carried at cost which approximates fair value and have maturities of less than one year. Note 1 - Summary of Significant Accounting Policies (continued) Securities: The Company classifies its debt securities as held to maturity or available for sale at the time of purchase. Held to maturity securities are those debt securities which management has the intent and the Company has the ability to hold to maturity and are reported at amortized cost. Available-for-sale securities are those debt securities which are neither held to maturity securities nor trading securities and are reported at fair value, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Premiums and discounts on all securities are generally amortized or accreted to the maturity date utilizing the level-yield method taking into consideration the impact of principal amortization and prepayments, as applicable. Gain or loss on sales of securities is based on the specific identification method. Effective January 1, 2023, the Company adopted the provisions of ASC 326 and modified its accounting policy for the assessment of available for sale securities for impairment. Under ASC 326, for available-for-sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available-for-sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses. Under ASC 326, changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Equity securities are carried at fair value with changes in fair value reported in income. Loans Receivable: Loans are stated at unpaid principal balances plus net deferred loan origination fees and costs less an allowance for credit losses. Interest on loans receivable is recorded on the accrual basis. An allowance for uncollected interest is established on loans where management has determined that the borrowers may be unable to meet contractual principal and/or interest obligations or where interest or principal is 90 days or more past due, unless the loans are well secured with a reasonable expectation of collection. When a loan is placed on nonaccrual, an allowance for uncollected interest is established and charged against current income. Thereafter, interest income is not recognized unless the financial condition and payment record of the borrower warrant the recognition of interest income. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Interest on loans that have been restructured is accrued according to the renegotiated terms. Net loan origination fees and costs are deferred and amortized into interest income over the contractual lives of the related loans by use of the level yield method. Past due status of loans is based upon the contractual due date. Note 1 - Summary of Significant Accounting Policies (continued) Prepayment penalties received on loans which pay in full prior to the scheduled maturity are included in interest income in the period the prepayment penalties are collected. Accounting Pronouncements Adopted in 2023: Effective January 1, 2023, the Company adopted Accounting Standards Topic 326, “Financial Instruments – Credit Losses” which replaced the previously existing U.S. GAAP “incurred loss” approach to “expected credit losses” approach, which is referred as Current Expected Credit Losses (“CECL”). CECL measures the credit loss associated with financial assets carried at amortized cost, including loan receivables, held-to-maturity debt securities, off balance sheet credit exposures. The Company adopted Topic 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balances sheet exposures. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Upon adoption, we recorded a cumulative-effect adjustment totaling $134,000, or $99,000, net of tax, to reduce retained earnings. The transition adjustment includes the adoption and changes to the three applicable components of the allowance for credit losses (“ACL”): a decrease of $1.6 million in the allowance for credit losses related to loans, an increase of $132,000 in the allowance for credit losses related to held-to-maturity debt securities, and an increase of $1.6 million in the allowance for credit losses related to off-balance sheet items. The following table illustrates the impact of adopting ASC 326: January 1, 2023 Pre-Adoption Adoption Impact As Reported (In Thousands) Assets ACL on debt securities held-to-maturity Municipal Bonds $ - $ 132 $ 132 ACL on loan receivables Residential real estate 528 895 1,423 Non-residential real estate 131 7 138 Construction 3,835 (2,086) 1,749 Commercial and industrial 955 (437) 518 Consumer 18 44 62 Unallocated 7 (7) - Liabilities ACL for off-balance sheet exposure - 1,586 1,586 $ 5,474 $ 134 $ 5,608 Allowance for Credit Losses - Loans The allowance for credit losses related to loans is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. Note 1 - Summary of Significant Accounting Policies (continued) The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses related to loans is measured on a collective (pool) basis when similar risk characteristics exist. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses related to loans when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include residential real estate, non-residential real estate, construction, commercial and industrial business, and consumer. For most segments the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to each individual loan within the segment. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount. The Company estimates the allowance for credit losses related to loans via a quantitative analysis which considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. Also included in the allowance for credit losses related to loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, might not be adequately represented in the quantitative analysis or the forecasts described above. Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, legal and regulatory requirements, among others. Qualitative loss factors are applied to each portfolio segment with the amounts judgmentally determined by the relative risk to the most severe loss periods identified in the historical loan charge-offs of the Company. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on the loan’s disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, the loan’s observable market price or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. Note 1 - Summary of Significant Accounting Policies (continued) Allowance for Credit Losses – Held-to-Maturity Debt Securities The allowance for credit losses related to held-to-maturity debt securities is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of held-to-maturity debt securities to present the net amount expected to be collected on the held-to-maturity debt securities. Losses, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When an investment is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. Allowance for Credit Losses Related to Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses related to off-balance sheet credit exposures is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Based on management’s comprehensive analysis of the credit portfolio, management believes the allowance for credit losses is appropriate as of December 31, 2023 and 2022, respectively. Concentration of Risk: The Company’s lending activity is concentrated in construction and permanent loans secured by multi-family and non-residential real estate located primarily in the Northeast and Mid-Atlantic regions of the United States. As of December 31, 2023 and 2022, the Company had majority of construction loans located in New York state, including $626.0 million and $440.6 million in the Bronx, $198.5 million and $122.4 million in the Town of Monroe, $133.7 million and $103.8 million in the Hamlet of Monsey, $105.9 million and $104.3 million in the Village of Spring Valley, and $18.8 million and $31.8 million in Brooklyn. The Company also had deposits in excess of the FDIC insurance limit at other financial institutions. At December 31, 2023 and 2022, such deposits totaled $43.2 million and $59.0 million held by the Federal Reserve Bank of New York, $13.7 million and $26.4 million held by the Federal Home Loan Bank of New York, and $430,000 and $1.0 million held by Atlantic Community Bankers Bank (“ACBB”). Generally, deposits in excess of $250,000 are not insured by the FDIC. Premises and Equipment: Land is stated at cost. Buildings and improvements, leasehold improvements and furnishings and equipment are stated at cost less accumulated depreciation and amortization computed on the straight-line method over the following useful lives: Years Buildings 30 – 50 Building improvements 10 – 50 Leasehold improvements 1 – 15 Furnishings and equipment 3 – 5 Maintenance and repairs are charged to operations in the years incurred. Note 1 - Summary of Significant Accounting Policies (continued) Property and equipment are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable. In evaluating property and equipment for recoverability, we use our best estimate of future cash flows expected to result from the use of the asset and its eventual disposition. To the extent that estimated future undiscounted net cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized equal to the difference between the carrying value of such asset and its fair value. The Company did not have impairment recorded for property and equipment in 2023 and 2022. Bank Owned Life Insurance (“BOLI”): The Company owns life insurance on the lives of certain of its officers. The cash surrender value is recorded as an asset and the change in cash surrender value is included in non-interest income and is tax-exempt. The BOLI can be liquidated, if necessary, with tax consequences. However, the Company intends to hold these policies and, accordingly, the Company has not provided for deferred income taxes on the earnings from the increase in cash surrender value. Investments in Restricted Stock: Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula. The Company also owns restricted stock in Atlantic Community Bancshares, Inc. (ACBI), holding company of ACBB, a correspondent banker’s bank. These stocks are carried at cost. At December 31, 2023 and 2022, the Company had $859,000 and $1.2 million in FHLB stock, and $70,000 and $70,000 in ACBB stocks. Goodwill: Goodwill at December 31, 2023 and 2022 totaled zero and $200,000, respectively, and consists of goodwill acquired in the business combination completed by the Company in November 2007. The Company tests goodwill during the fourth quarter of each year for impairment, or more frequently if certain indicators are present or changes in circumstances suggest that impairment may exist. The Company utilizes a two-step approach. The first step requires a comparison of the carrying value of the reporting unit to the fair value of the unit. The Company estimates the fair value of the reporting unit through internal analyses and external valuation, which utilizes an income approach based on the present value of future cash flows. If the carrying value of the reporting unit exceeds its fair value, impairment exists and the Company will perform the second step of the goodwill impairment test to measure the amount of impairment loss, if any. The second step of the goodwill impairment test, if necessary, compares the implied fair value of a reporting unit’s goodwill with its carrying value. The implied fair value of goodwill is determined in the same manner that the amount of goodwill recognized in a business combination is determined. The Company allocates the fair value of the reporting unit to all of the assets and liabilities of that unit, including identifiable intangible assets, as if the reporting unit had been acquired in a business combination. Any excess of the value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. Impairment charges of $451,000 were recorded in 2022 due to increased capitalization rate when evaluating the investment value of the goodwill. As of December 31, 2023, the goodwill was eliminated along with the sale of Harbor West Wealth Management Group to a third party in December 2023. The sale resulted in a total of $138,000 loss recognized on the consolidated statement of income. Real Estate Owned: Real estate owned is carried at the lower of cost or fair value of the related property, as determined by current appraisals less estimated costs to sell. Foreclosed real estate is initially recorded at the fair value of property acquired minus estimated costs to sell at the date of foreclosure, establishing a new cost basis. Write-downs on these properties, which occur after the initial transfer from the loan portfolio, are recorded as operating expenses. Costs of holding such properties are charged to non-interest expense in the current period. Gains, to the extent allowable, and losses Note 1 - Summary of Significant Accounting Policies (continued) on the disposition of these properties are reflected in the real estate owned expense in the consolidated statement of income. The Company wrote down $540,000 in 2022 due to increased capitalization rate in evaluating the fair value of the properties. No write-downs were recorded in 2023. Property Held for Investment: Land is stated at cost. Buildings and improvements are stated at cost less accumulated depreciation computed on the straight-line method over the useful lives between 30 to 50 years for buildings and 10 to 50 years for building improvements. Property held for investment is evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable. In evaluating property held for investment for recoverability, we use our best estimate of future cash flows expected to result from the use of the asset and its eventual disposition. To the extent that estimated future undiscounted net cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized equal to the difference between the carrying value of such asset and its fair value. The Company did not have impairment recorded for property held for investment in 2023 and 2022. Income Taxes: The Company files a consolidated federal income tax return. Income taxes are allocated to the Company, Bank, NECP, and NECB Financial based upon their respective income or loss included in the consolidated income tax return. The Company, the Bank, NECP, and NECB Financial file combined or separate state and city income tax returns depending on the particular requirements of each jurisdiction. Federal, state and city income tax expense has been provided on the basis of reported income. The amounts reflected on the tax returns differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted for as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax base. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided, when necessary, for that portion of the asset, which is not more likely than not to be realized. The Company accounts for uncertainty in income taxes recognized in its consolidated financial statements in accordance with ASC Topic 740, “Income Taxes”, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has not identified any significant income tax uncertainties through the evaluation of its income tax positions for the years ended December 31, 2023 and 2022, and has not recognized any liabilities for tax uncertainties as of December 31, 2023 and 2022. The Company’s policy is to recognize income tax related interest and penalties in income tax expense; there were no such amounts during the years ended December 31, 2023 and 2022. The tax years subject to examination by federal, state, and city taxing authorities are 2020 through 2023. Other Comprehensive Income (Loss): The Company records in accumulated other comprehensive income (loss), net of related deferred income taxes, unrealized gains and losses on available for sale securities and the prior service cost and actuarial gains and losses related to the Outside Directors Retirement Plan (“DRP”) that have not yet been recognized in expense. Note 1 - Summary of Significant Accounting Policies (continued) Gains and losses on the sale of securities, if any, are reclassified to non-interest income upon the sale of the related securities or upon the recognition of a security impairment loss and a portion of the prior service cost and actuarial gains and losses of the DRP are reclassified to non-interest expense. At December 31, 2023, accumulated other comprehensive income totaled $317,000 and included $352,000 in prior service cost and actuarial gains of the DRP net of $35,000 of related deferred income benefits. At December 31, 2022, accumulated other comprehensive income totaled $156,000 and included $197,000 in prior service cost and actuarial losses of the DRP net of $41,000 of related deferred income taxes. Earnings per Share: Basic earnings per share is calculated by dividing the net income available to common stockholders by the weighted-average number of common shares outstanding during the period less any unvested restricted shares. Unallocated common shares held by the Employee Stock Ownership Plan (“ESOP”) are not included in the weighted-average number of common shares outstanding for purposes of calculating basic net income per common share until they are committed to be released. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income th |
Mutual Holding Company Reorgani
Mutual Holding Company Reorganization and Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Mutual Holding Company Reorganization and Regulatory Matters | |
Mutual Holding Company Reorganization and Regulatory Matters | Note 2 – Mutual Holding Company Reorganization and Regulatory Matters On July 5, 2006, the Bank reorganized from a mutual savings bank to a mutual holding company structure. In the reorganization, the Company sold 5,951,250 shares of its common stock to the public and issued 7,273,750 shares of its common stock to Northeast Community Bancorp, MHC (“MHC”). As disclosed in note 1, in conjunction with the completion of the second-step conversion on July 12, 2021, each of NorthEast Community Bancorp, MHC and the Mid-Tier Holding Company merged out of existence and now cease to exist. Note 2 – Mutual Holding Company Reorganization and Regulatory Matters (continued) The Federal Deposit Insurance Corporation (“FDIC”) and the New York State Department of Financial Services (“NYS”) are the Bank’s primary regulator. Under New York State Banking Law, New York state-chartered stock-form savings banks may declare and pay dividends out of their net profits, unless there is an impairment of capital, but approval of the NYS Superintendent is required if the total of all dividends declared by the bank in a calendar year would exceed the total of its net profits for that year combined with its retained net profits for the preceding two years less prior dividends paid. The FDIC also has authority to use its enforcement powers to prohibit a savings bank from paying dividends if, in its opinion, the payment of dividends would constitute an unsafe and unsound practice. The Bank is subject to risk-based capital standards by which banks are evaluated in terms of capital adequacy. These regulatory capital requirements are administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital and classification are also subject to qualitative judgments by the regulators. Management believes that, as of December 31, 2023, the Bank meets all capital adequacy requirements to which it is subject. Prompt corrective action regulations provide five classifications: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2023 and 2022, the most recent regulatory notifications categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. In addition, a capital conservation buffer of 2.50% is applicable to all capital ratios except for the Tier 1 Leverage ratio. The capital conservation buffer is equal to the lowest value of the three applicable capital ratios less the regulatory minimum (“adequately capitalized”) for each respective capital measurement. Compliance with the capital conservation buffer is required to avoid limitations on certain capital distributions, especially dividends. The Bank is required to maintain a capital conservation buffer of 2.50% at December 31, 2023 and 2022. The Bank met all capital adequacy requirements to which it was subject as of December 31, 2023 and 2022. Actual and required capital amounts and ratios as of December 31, 2023 and 2022, are presented below: Regulatory Capital Requirements Minimum Capital For Classification as Actual Adequacy (1) Well-Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of December 31, 2023: Total capital (to risk-weighted assets) $ 255,252 13.43 % $ ≥ 152,097 ≥ 8.00 % $ ≥ 190,121 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 249,013 13.10 ≥ 114,072 ≥ 6.00 ≥ 152,097 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 249,013 13.10 ≥ 85,554 ≥ 4.50 ≥ 123,579 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 249,013 14.43 ≥ 69,007 ≥ 4.00 ≥ 86,259 ≥ 5.00 As of December 31, 2022: Total capital (to risk-weighted assets) $ 222,728 13.66 % $ ≥ 130,429 ≥ 8.00 % $ ≥ 163,036 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 217,283 13.33 ≥ 97,822 ≥ 6.00 ≥ 130,429 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 217,283 13.33 ≥ 73,366 ≥ 4.50 ≥ 105,973 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 217,283 16.50 ≥ 52,687 ≥ 4.00 ≥ 65,858 ≥ 5.00 (1) Ratios do not include the capital conservation buffer. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments with Off-Balance Sheet Risk | |
Financial Instruments with Off-Balance Sheet Risk | Note 3 - Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. December 31, 2023 2022 (In Thousands) Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 125,885 $ 164,903 Construction loans in process 481,277 637,427 Stand-by letters of credit 9,508 12,451 Commitments to fund unused lines of credit: Commercial and industrial lines 102,903 133,794 Consumer lines 67 86 $ 719,640 $ 948,661 Commitments to extend credit are legally binding agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The amount of collateral obtained, if deemed necessary by the Company, is based on management’s credit evaluation of the borrower. . |
Equity Securities
Equity Securities | 12 Months Ended |
Dec. 31, 2023 | |
Equity Securities | |
Equity Securities | Note 4 – Equity Securities The following table is the schedule of Equity Securities at December 31, 2023 and 2022. December 31, 2023 2022 (In Thousands) Equity Securities, at Fair Value $ 18,102 $ 18,041 The following is a summary of realized and unrealized losses recognized in net income on equity securities during the year ended December 31, 2023 and 2022: December 31, 2023 2022 (In Thousands) Net unrealized gain (loss) recognized on equity securities during the period $ 61 $ (1,902) Capital gain realized on equity securities during the period 233 329 Net losses realized on the sale of equity securities during the period — — Realized and unrealized net gain (loss) recognized on equity securities held at the reporting date $ 294 $ (1,573) |
Securities Available-for-Sale
Securities Available-for-Sale | 12 Months Ended |
Dec. 31, 2023 | |
Securities Available-for-Sale | |
Securities Available-for-Sale | Note 5 – Securities Available-for-Sale The Company’s portfolio of securities available-for-sale was zero at December 31, 2023. The following table summarized the portfolio at December 31, 2022: December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Federal Home Loan Mortgage Corporation $ 1 $ — $ — $ 1 $ 1 $ — $ — $ 1 There were no sales of securities available-for-sale during the years ended December 31, 2023 and 2022. The Company had no unrealized loss on securities available-for-sale at December 31, 2023 and 2022. |
Securities Held-to-Maturity
Securities Held-to-Maturity | 12 Months Ended |
Dec. 31, 2023 | |
Securities Held-to-Maturity | |
Securities Held-to-Maturity | Note 6 – Securities Held-to-Maturity The following table summarized the Company’s portfolio of securities held-to-maturity at December 31, 2023 and 2022. No securities held-to-maturity were pledged to secure borrowings. December 31, 2023 Gross Gross Allowance Amortized Unrealized Unrealized Fair for Cost Gains Losses Value Credit Loss (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 452 $ — $ 7 $ 445 $ — Federal Home Loan Mortgage Corporation 868 — 114 754 — Federal National Mortgage Association 1,985 — 198 1,787 — Collateralized mortgage obligations – GSE 2,889 — 580 2,309 — Total mortgage-backed securities 6,194 — 899 5,295 — Municipal Bonds 9,802 — 1,971 7,831 136 $ 15,996 $ — $ 2,870 $ 13,126 $ 136 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 523 $ — $ 18 $ 505 Federal Home Loan Mortgage Corporation 961 — 129 832 Federal National Mortgage Association 2,308 — 250 2,058 Collateralized mortgage obligations – GSE 3,043 — 506 2,537 Total mortgage-backed securities 6,835 — 903 5,932 Municipal Bonds 9,546 — 2,524 7,022 U.S. Treasury securities 10,014 — 103 9,911 $ 26,395 $ — $ 3,530 $ 22,865 Contractual final maturities of mortgage-backed securities and municipal bonds were as follows at December 31, 2023: December 31, 2023 Amortized Fair Cost Value (In Thousands) Due within one year $ 712 $ 639 Due after one but within five years 2,024 1,733 Due after five but within ten years 2,872 2,666 Due after ten years 10,388 8,088 $ 15,996 $ 13,126 The maturities shown above are based upon contractual final maturity. Actual maturities will differ from contractual maturities due to scheduled monthly repayments and due to the underlying borrowers having the right to prepay their obligations. Note 6 – Securities Held-to-Maturity (continued) The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity: Municipal Bonds Balance – December 31, 2022 $ - Impact of adopting ASC 326 132 Provision for credit loss 4 Balance - December 31, 2023 $ 136 The age of unrealized losses and the fair value of related securities held-to-maturity were as follows: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In Thousands) December 31, 2023: Mortgage-backed securities - residential: Government National Mortgage Association $ — $ — $ 445 $ 7 $ 445 $ 7 Federal Home Loan Mortgage Corporation — — 754 114 754 114 Federal National Mortgage Association — — 1,787 198 1,787 198 Collateralized mortgage obligations – GSE — — 2,309 580 2,309 580 Total mortgage-backed securities $ — $ — $ 5,295 $ 899 $ 5,295 $ 899 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In Thousands) December 31, 2022: Mortgage-backed securities - residential: Government National Mortgage Association $ 505 $ 18 $ — $ — $ 505 $ 18 Federal Home Loan Mortgage Corporation — — 824 129 824 129 Federal National Mortgage Association 478 33 1,580 217 2,058 250 Collateralized mortgage obligations – GSE 1,777 344 759 162 2,536 506 Total mortgage-backed securities 2,760 395 3,163 508 5,923 903 Municipal Bonds 444 39 6,579 2,485 7,023 2,524 U.S. Treasury securities 9,911 103 — — 9,911 103 $ 13,115 $ 537 $ 9,742 $ 2,993 $ 22,857 $ 3,530 Note 6 – Securities Held-to-Maturity (continued) At December 31, 2023, twenty-seven mortgage-backed securities and eight municipal bonds had unrealized loss due to interest rate volatility. Management concluded that the unrealized loss reflected above was related primarily to market interest rates volatility, and not related to the underlying credit quality of the issuers of the securities. Additionally, the Company has the ability and intent to hold the securities for the time necessary to recover the amortized cost. At December 31, 2022, there were thirty-five mortgage-backed securities, six municipal bonds and two U.S. Treasury notes with unrealized loss. |
Loans Receivable and the Allowa
Loans Receivable and the Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Loans Receivable and the Allowance for Credit Losses | |
Loans Receivable and the Allowance for Credit Losses | Note 7 - Loans Receivable and the Allowance for Credit Losses The composition of loans were as follows at December 31: December 31, 2023 2022 (In Thousands) Residential real estate: One-to-four family $ 5,252 $ 5,467 Multi-family 198,927 123,385 Mixed-use 29,643 21,902 Total residential real estate 233,822 150,754 Non-residential real estate 21,130 25,324 Construction 1,219,413 930,628 Commercial and industrial 111,116 110,069 Consumer 1,240 546 Total Loans 1,586,721 1,217,321 Deferred loan costs, net 176 372 Allowance for credit losses (5,093) (5,474) $ 1,581,804 $ 1,212,219 Loans serviced for the benefit of others totaled approximately $40,729,000 and $22,350,000 at December 31, 2023 and 2022, respectively. The value of mortgage servicing rights was not material at December 31, 2023 and 2022. The Company sold loan participations totaling $19.2 million and $11.5 million in 2023 and 2022. During the year ended December 31, 2023, the Company sold three loans with the same borrower totaling $10.4 million with a charge-off of $159,000 recognized on the sale. During the year ended December 31, 2022, the Company sold one loan totaling $1,578,000, net of interest reserve of $63,000, with a charge-off of $391,000 recognized on the sale. Note 7 - Loans Receivable and the Allowance for Credit Losses (continued) The following tables summarize the allocation of the allowance for credit losses based upon the calculation methodology described in Note 1, and loans receivable by loan class and credit loss method at December 31, 2023 and 2022: At December 31, 2023: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for credit losses: Ending balance $ 2,433 $ 126 $ 1,914 $ 472 $ 148 $ — $ 5,093 Ending balance: individually evaluated for credit loss $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for credit loss $ 2,433 $ 126 $ 1,914 $ 472 $ 148 $ — $ 5,093 Loans receivable: Ending balance $ 233,822 $ 21,130 $ 1,219,413 $ 111,116 $ 1,240 $ — $ 1,586,721 Ending balance: individually evaluated for credit loss $ — $ — $ 4,385 $ — $ — $ — $ 4,385 Ending balance: collectively evaluated for credit loss $ 233,822 $ 21,130 $ 1,215,028 $ 111,116 $ 1,240 $ — $ 1,582,336 At December 31, 2022: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Ending balance $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Loans receivable: Ending balance $ 150,754 $ 25,324 $ 930,628 $ 110,069 $ 546 $ — $ 1,217,321 Ending balance: individually evaluated for impairment $ 855 $ — $ — $ — $ — $ — $ 855 Ending balance: collectively evaluated for impairment $ 149,899 $ 25,324 $ 930,628 $ 118,378 $ 546 $ — $ 1,216,466 Note 7 - Loans Receivable and the Allowance for Credit Losses (continued) The activity in the allowance for credit loss by loan class for the years ended December 31, 2023 and 2022 was as follows: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for credit losses: Balance - December 31, 2022 $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Impact of adopting ASC 326 895 7 (2,086) (437) 44 (7) (1,584) Charge-offs — — (159) — (154) — (313) Recoveries — — — — — — — Provision (Benefit) 1,010 (12) 324 (46) 240 — 1,516 Balance - December 31, 2023 $ 2,433 $ 126 $ 1,914 $ 472 $ 148 $ — $ 5,093 Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Balance - December 31, 2021 $ 571 $ 381 $ 3,143 $ 973 $ 10 $ 164 $ 5,242 Charge-offs (86) — (328) — (35) — (449) Recoveries 189 53 — — — — 242 Provision (Benefit) (146) (303) 1,020 (18) 43 (157) 439 Balance - December 31, 2022 $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 During the year ended December 31, 2023, the provision expenses recorded for construction loans were primarily attributed to the increased loan balances. The provision expenses recorded for residential loans was primarily due to increased loan balances and increased average contractual terms of the loans. The provision expenses recorded for consumer loans was primarily due to increased deposit account overdraft balance and increased credit risk. During the year ended December 31, 2022, the provision expenses recorded for construction loans were attributed to the increased loan balances. The credit provision recorded for residential loans was primarily due to loan recoveries and reduced credit risk. The credit provision recorded for non-residential loans was attributed to loan recoveries and decreased loan balances. Note 7 - Loans Receivable and the Allowance for Credit Losses (continued) The following table shows our recorded investment, unpaid principal balance and allocated allowance for credit losses for loans that were considered nonperforming and impaired as of and for the periods presented: As of and for the Year Ended December 31, 2023: Recorded Unpaid Principal Related Average Recorded Interest Income 2023 - Individually evaluated Investment Balance Allowance Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate $ — $ — $ — $ — $ — Non-residential real estate — — — — — Construction 4,385 4,353 — 5,930 — Commercial and industrial — — — — — 4,385 4,353 — 5,930 — With an allowance recorded — — — — — Total: Residential real estate — — — — — Non-residential real estate — — — — — Construction 4,385 4,353 — 5,930 — Commercial and industrial — — — — — $ 4,385 $ 4,353 $ — $ 5,930 $ — As of and for the Year Ended December 31, 2022: Recorded Unpaid Principal Related Average Recorded Interest Income 2022 - Impaired Investment Balance Allowance Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate $ 855 $ 769 $ — $ 863 $ 43 Non-residential real estate — — — 385 14 Construction — — — — — Commercial and industrial — — — — — 855 769 — 1,248 57 With an allowance recorded — — — — — Total: Residential real estate 855 769 — 863 43 Non-residential real estate — — — 385 14 Construction — — — — — Commercial and industrial — — — — — $ 855 $ 769 $ — $ 1,248 $ 57 Note 7 - Loans Receivable and the Allowance for Credit Losses (continued) The Company has two individually evaluated loans, totaling $4.4 million, which were collateral-dependent construction loans, secured by multi-family real estate, at December 31, 2023. The two loans are secured by the same project located in the Bronx, New York, and are currently placed on non-accrual status. There was no interest income recognized from non-accrual loans as of December 31, 2023 and 2022. There were no non-accrual loans at December 31, 2022. The following tables provide information about delinquencies in our loan portfolio at the dates indicated. Age Analysis of Past Due Loans as of December 31, 2023: Recorded Investment > 30 – 59 Days 60 – 89 Days Greater Than Total Past Total Loans 90 Days and Past Due Past Due 90 Days Due Current Receivable Accruing (In Thousands) Residential real estate: One- to four-family $ — $ — $ — $ — $ 5,252 $ 5,252 $ — Multi-family — — — — 198,927 198,927 — Mixed-use — — — — 29,643 29,643 — Non-residential real estate — — — — 21,130 21,130 — Construction loans 2,319 — 4,385 6,704 1,212,709 1,219,413 — Commercial and industrial loans — — — — 111,116 111,116 — Consumer 1 — — 1 1,239 1,240 — $ 2,320 $ — $ 4,385 $ 6,705 $ 1,580,016 $ 1,586,721 $ — Age Analysis of Past Due Loans as of December 31, 2022: Recorded Investment 30 – 59 Days 60 – 89 Days Greater Than Total Past Total Loans > 90 Days and Past Due Past Due 90 Days Due Current Receivable Accruing (In Thousands) Residential real estate: One- to four-family $ — $ — $ — $ — $ 5,467 $ 5,467 $ — Multi-family — 946 — 946 122,439 123,385 — Mixed-use — — — — 21,902 21,902 — Non-residential real estate — — — — 25,324 25,324 — Construction loans — — — — 930,628 930,628 — Commercial and industrial loans — — — — 110,069 110,069 — Consumer — — — — 546 546 — $ — $ 946 $ — $ 946 $ 1,216,375 $ 1,217,321 $ — Note 7 - Loans Receivable and the Allowance for Credit Losses (continued) Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings: Pass Special Mention Substandard Doubtful Note 7 - Loans Receivable and the Allowance for Credit Losses (continued) The following table presents the risk category of loans at December 31, 2023 by loan segment and vintage year: Revolving Revolving Term Loans Amortized Costs Basis by Origination Year Loans Loans Amortized Converted December 31, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate Risk Rating Pass $ 81,379 $ 71,932 $ 24,504 $ 10,696 $ 1,326 $ 43,070 $ - $ - $ 232,907 Special Mention - - - 915 - - - - 915 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 81,379 $ 71,932 $ 24,504 $ 11,611 $ 1,326 $ 43,070 $ - $ - $ 233,822 Residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Non-residential real estate Risk Rating Pass $ 1,602 $ 251 $ 1,841 $ 995 $ 379 $ 16,062 $ - $ - $ 21,130 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 1,602 $ 251 $ 1,841 $ 995 $ 379 $ 16,062 $ - $ - $ 21,130 Non-residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Construction Risk Rating Pass $ 376,763 $ 501,012 $ 216,901 $ 55,865 $ 25,150 $ 39,337 $ - $ - $ 1,215,028 Special Mention - - - - - - - - - Substandard - - - 4,385 - - - - 4,385 Doubtful - - - - - - - - - Total $ 376,763 $ 501,012 $ 216,901 $ 60,250 $ 25,150 $ 39,337 $ - $ - $ 1,219,413 Construction Current period gross charge-offs $ - $ - $ - $ - $ - $ 159 $ - $ - $ 159 Commercial and industrial Risk Rating Pass $ 5,057 $ 8,329 $ 436 $ 435 $ 308 $ 2,195 $ 91,301 $ 3,055 $ 111,116 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 5,057 $ 8,329 $ 436 $ 435 $ 308 $ 2,195 $ 91,301 $ 3,055 $ 111,116 Commercial and industrial Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer Risk Rating Pass $ 1,229 $ - $ - $ - $ - $ $ 11 $ - $ 1,240 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 1,229 $ - $ - $ - $ - $ - $ 11 $ - $ 1,240 Consumer Current period gross charge-offs $ 154 $ - $ - $ - $ - $ - $ - $ - $ 154 Total Risk Rating Pass $ 466,030 $ 581,524 $ 243,682 $ 67,991 $ 27,163 $ 100,664 $ 91,312 $ 3,055 $ 1,581,421 Special Mention - - - 915 - - - - 915 Substandard - - - 4,385 - - - - 4,385 Doubtful - - - - - - - - - Total $ 466,030 $ 581,524 $ 243,682 $ 73,291 $ 27,163 $ 100,664 $ 91,312 $ 3,055 $ 1,586,721 Total Current period gross charge-offs $ 154 $ - $ - $ - $ - $ 159 $ - $ - $ 313 Note 7 - Loans Receivable and the Allowance for Credit Losses (continued) The following table provides certain information related to the credit quality of our loan portfolio at December 31, 2022. Credit Risk Profile by Internally Assigned Grade as of December 31, 2022: Residential Non-residential Commercial Real Estate Real Estate Construction and Industrial Consumer Total (In Thousands) Grade: Pass $ 148,953 $ 25,324 $ 930,628 $ 110,069 $ 546 $ 1,215,520 Special Mention 946 — — — — 946 Substandard 855 — — — — 855 Doubtful — — — — — — $ 150,754 $ 25,324 $ 930,628 $ 110,069 $ 546 $ 1,217,321 Modifications to Borrowers Experiencing Financial Difficulty: Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. There were no loans modified to borrowers experiencing financial difficulty during the years ended December 31, 2023 and 2022. Allowance for Credit Losses on Off-Balance Sheet Commitments: The following table presents the activity in the allowance for credit losses related to off-balance sheet commitments, that is included in Accounts Payable and Accrued Expenses on the consolidated statement of financial condition, for the year ended December 31, 2023: Allowance for Credit Loss Balance – December 31, 2022 $ - Impact of adopting ASC 326 1,586 Provision for credit loss (548) Balance – December 31, 2023 $ 1,038 |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment, Net | |
Premises and Equipment, Net | Note 8 - Premises and Equipment, Net December 31, December 31, 2023 2022 (In Thousands) Land $ 6,652 $ 6,652 Buildings and improvements 22,912 22,647 Leasehold improvements 1,805 1,741 Furnishings and equipment 8,051 7,880 39,420 38,920 Accumulated depreciation and amortization (13,968) (12,857) $ 25,452 $ 26,063 Depreciation expense on premises and equipment for the fiscal years ended December 31, 2023 and 2022 totaled $1.2 million and $1.2 million, respectively. |
Accrued Interest Receivable, Ne
Accrued Interest Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Interest Receivable, Net | |
Accrued Interest Receivable, Net | Note 9 - Accrued Interest Receivable, Net December 31, December 31, 2023 2022 (In Thousands) Loans receivable $ 12,273 $ 8,532 Securities 38 65 $ 12,311 $ 8,597 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 10 - Goodwill and Intangible Assets Goodwill and intangible assets at December 31 are summarized as follows: December 31, December 31, 2023 2022 (In Thousands) Goodwill $ — $ 1,310 Accumulative goodwill impairment — (1,110) Goodwill, net of charge-off $ — $ 200 As of December 31, 2023, the goodwill was eliminated along with the sale of Harbor West Wealth Management Group to a third party in December 2023. The sale resulted in a total of $138,000 loss recognized on the consolidated statement of income. The Company identified $451,000 in goodwill impairment during the year ended December 31, 2022. |
Real Estate Owned ("REO")
Real Estate Owned ("REO") | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate Owned ("REO") | |
Real Estate Owned ("REO") | Note 11 - Real Estate Owned (“REO”) The Company owned one foreclosed property valued at approximately $1,456,000 at December 31, 2023 and 2022, respectively, consisting of an office building located in Pennsylvania. The property was acquired through foreclosure in December 2014. Further declines in real estate values may result in impairment charges in the future. Routine holding costs are charged to expense as incurred and improvements to real estate owned that enhance the value of the real estate are capitalized. REO expense recorded in the consolidated statements of income, including loss on sales and write-downs, amounted to $93,000 and $623,000 during the years ended December 31, 2023 and 2022. |
Property Held For Investment
Property Held For Investment | 12 Months Ended |
Dec. 31, 2023 | |
Property Held For Investment | |
Property Held For Investment | Note 12– Property Held For Investment Property held for investment at December 31 are summarized as follows: December 31, December 31, 2023 2022 (In Thousands) Land $ 500 $ 500 Buildings and improvements 1,442 1,442 1,942 1,942 Accumulated depreciation and amortization (535) (498) $ 1,407 $ 1,444 The Company owned one property at December 31, 2023 and 2022 consisting of a former branch office located in Plymouth, Massachusetts. The property is currently leased to a car rental company to generate current income for the Company. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits | |
Deposits | Note 13 – Deposits Total deposits at December 31, 2023 and 2022 and the weighted average rate of deposits are as follows: December 31, 2023 2022 Weighted Average Weighted Average Amount Interest Rate Amount Interest Rate (Dollars in Thousands) Demand deposits: Non-interest bearing $ 300,184 — % $ 376,302 — % NOW and money market 144,807 3.07 % 88,122 0.95 % Total 444,991 1.00 % 464,424 0.18 % Savings accounts 192,594 2.71 % 273,839 2.68 % Certificates of deposit maturing in: One year or less 596,091 4.83 % 258,873 3.11 % After one to two years 81,118 3.24 % 76,180 2.78 % After two to three years 1,462 0.72 % 34,204 0.61 % After three to four years 12,371 1.31 % 1,318 0.75 % After four years 71,409 5.03 % 13,117 1.28 % Total 762,451 4.62 % 383,692 2.75 % $ 1,400,036 3.20 % $ 1,121,955 1.67 % As of December 31, 2023 and 2022, certificates of deposits equal to or in excess of $250,000 totaled approximately $178,112,000 and $205,845,000, respectively. At December 31, 2023 and 2022, the demand deposit overdrafts totaled $1,229,000 and $517,000. Overdraft deposits are reclassified as consumer loans and are included in the total loans on the Consolidated Statements of Financial Condition. The aggregate amount of brokered deposits was $311.2 million and $114.2 million as of December 31, 2023 and 2022, respectively. At December 31, 2023 and 2022, the Company also had $13.0 million and $10.9 million, respectively, in Insured Cash Sweep (“ICS”) reciprocal money market deposits, which are no longer considered fully-insured brokered deposits as defined in the FDIC call report instructions. Note 13 – Deposits (continued) The ICS money market deposits were obtained from seven retail depositors and then transferred into the ICS Network in order to obtain full FDIC insurance coverage for our customers. These types of deposits are known in the ICS Network as reciprocal deposits, which the Company considers as core deposits and not brokered deposits. Interest expense on deposits consists of the following: Years Ended December 31, 2023 2022 (In Thousands) Demand deposits $ 2,459 $ 918 Savings accounts 6,777 2,688 Certificates of deposit 24,945 3,938 $ 34,181 $ 7,544 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings | |
Borrowings | Note 14 – Borrowings Our borrowings include Federal Home Loan Bank of New York (“FHLB”) advances and short-term borrowings from the Discount Window at the Federal Reserve Bank of New York (“FRBNY”). FHLB advances are summarized as follows at December 31: December 31, 2023 2022 Weighted Average Weighted Average Amount Interest Rate Amount Interest Rate (Dollars in Thousands) Advances maturing in: One year or less $ 7,000 2.86 % $ 7,000 2.83 % After one to three years — — % 7,000 2.86 % After three to four years — — % — — % After five years (due 2030) 7,000 1.61 % 7,000 1.61 % $ 14,000 2.24 % $ 21,000 2.43 % At December 31, 2023, none of the above advances were subject to early call or redemption features. All advances had fixed interest rates and the term of the advance ranges between 2 and 10 years. At December 31, 2023, the advances were secured by a pledge of the Company’s investment in the capital stock of the FHLB and a blanket assignment of the Company’s otherwise unpledged qualifying mortgage loans. At December 31, 2023, these unpledged qualifying mortgage loans were not pledged to any company other than the FHLB. At December 31, 2023, the Company had the ability to borrow $29.7 million, net of $14.0 million in outstanding advances, from the FHLB and $8.0 million from ACBB. On August 30, 2023, the FRBNY approved the Company’s eligibility to pledge loans under the Borrower-in-Custody program of the FRBNY thereby allowing the Company to borrow from the Discount Window at the FRBNY. As of December 31, 2023, the borrowing from FRBNY was $50.0 million, bearing an interest rate of 5.5% and matures on March 20, 2024. The Company had an available borrowing limit of $865.1 million from the FRBNY as of December 31, 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | Note 15 - Income Taxes The Bank qualifies as a savings institution under the provisions of the Internal Revenue Code and was, therefore, prior to January 1, 1996, permitted to deduct from taxable income an allowance for bad debts based upon eight percent of taxable income before such deduction, less certain adjustments. Retained earnings at December 31, 2023 and 2022, include approximately $4.1 million of such bad debt deductions which, in accordance with U.S. GAAP is considered a permanent difference between the book and income tax basis of loans receivable, and for which deferred income taxes have not been provided. If such amount is used for purposes other than for bad debt losses, including distributions in liquidation, it will be subject to income tax at the then current rate. The components of provision for income taxes are summarized as follows: Years Ended December 31, 2023 2022 (In Thousands) Current tax expense $ 18,832 $ 10,894 Deferred tax expense (367) (1,308) $ 18,465 $ 9,586 The following table presents a reconciliation between the reported income taxes and the income taxes, which would be computed by applying the existing federal income tax rate of 21% for 2023 and 2022 to income before taxes: Years Ended December 31, 2023 2022 (Dollars In Thousands) Federal income tax at statutory rates $ 13,596 $ 7,230 State and city tax, net of federal income tax effect 4,851 2,321 Non-taxable income on bank owned life insurance (213) (127) Other 231 162 $ 18,465 $ 9,586 Effective Income Tax Rate 28.5 % 27.8 % The tax effects of significant items comprising the net deferred tax asset are as follows: December 31, 2023 2022 (In Thousands) Deferred tax assets: Allowance for credit losses $ 1,313 $ 1,411 State net operating loss carryforwards 24 150 Benefit plans 2,335 2,063 Accumulated other comprehensive loss – DRP 35 — Other 653 273 Total Deferred Tax Assets 4,360 3,897 Deferred tax liability: Depreciation 497 418 Goodwill — 52 Accumulated other comprehensive gain – DRP — 42 Total Deferred Tax Liabilities 497 512 Net Deferred Tax Assets Included in Other Assets $ 3,863 $ 3,385 Note 15 - Income Taxes (continued) The Company has state net operating loss (NOL) carryforwards totaling approximately $500,000 at December 31, 2023 that are available to be carried forward to future years. These NOL carryforwards will start to expire beginning in 2035 if not fully utilized. At December 31, 2023, the Company had no valuation allowance because the Company determined there will be enough future New York State taxable income to utilize the New York State deferred tax assets. |
Other Non-Interest Expenses
Other Non-Interest Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Other Non-Interest Expenses | |
Other Non-Interest Expenses | Note 16 - Other Non-Interest Expenses The following is an analysis of other non-interest expenses: Years Ended December 31, 2023 2022 (In Thousands) Other $ 4,043 $ 2,827 Service contracts 1,424 1,092 Consulting expense 780 950 Telephone 673 611 Directors compensation 892 676 Audit and accounting 497 566 Insurance 395 372 Director, officer, and employee expense 252 258 Legal fees 617 765 Office supplies and stationary 167 137 Recruiting expense 30 93 $ 9,770 $ 8,347 |
Benefits Plans
Benefits Plans | 12 Months Ended |
Dec. 31, 2023 | |
Benefits Plans | |
Benefits Plans | Note 17 - Benefits Plans Outside Director Retirement Plan (“DRP”) The DRP is an unfunded non-contributory defined benefit pension plan covering all non-employee directors meeting eligibility requirements as specified in the plan document. The following table sets forth the funded status of the DRP and components of net pension periodic expense measured as of December 31: Years Ended December 31, 2023 2022 (Dollars In Thousands) Projected benefit obligation – beginning $ 1,808 $ 2,087 Service cost 94 97 Interest cost 85 81 Actuarial gain (116) (353) Benefits Paid (104) (104) Projected benefit obligation – ending $ 1,767 $ 1,808 Funded status – accrued liability included in accounts payable and accrued expenses $ 1,767 $ 1,808 Accumulated benefit obligation $ 1,675 $ 1,712 Discount rate 5.21 % 4.83 % Rate of increase in future compensation levels 2.00 % 2.00 % Years Ended December 31, 2023 2022 (Dollars In Thousands) Net periodic pension expense: Service cost $ 94 $ 97 Interest cost 85 81 Actuarial (gain) loss amortized (32) 27 Total net periodic pension expense included in other non-interest expenses $ 147 $ 205 Discount rate 5.21 % 4.83 % Rate of increase in future compensation levels 2.00 % 2.00 % Benefit payments, which reflect expected future service as appropriate, are expected to be paid for the years ending December 31 as follows (in thousands): 2024 $ 104 2025 190 2026 204 2027 230 2028 230 2029 to 2033 957 At December 31, 2023 and 2022, unrecognized net gain of $116,000 and $353,000, respectively, were included in accumulated other comprehensive income. Supplemental Executive Retirement Plan (“SERP”) The SERP is a non-contributory defined benefit plan that covers certain officers of the Company. Under the SERP, each of these individuals will be entitled to receive upon retirement an annual benefit paid in monthly installments equal to 50% of his average base salary in the three-year period preceding retirement. Each individual may also retire Note 17 - Benefits Plans (continued) Supplemental Executive Retirement Plan (“SERP”)(continued) early and receive a reduced benefit upon the attainment of certain age and years of service combination. Additional terms related to death while employed, death after retirement, disability before retirement and termination of employment are fully described within the plan document. The benefit payment term is the greater of 15 years or the executives remaining life. No benefits next five years During the years ended December 31, 2023 and 2022, expenses of $143,000 and $239,000, respectively, were recorded for this plan and are reflected in the Consolidated Statements of Income under Salaries and Employee Benefits. At December 31, 2023 and 2022, a liability for this plan of $4,160,000 and $4,017,000, respectively, is included in the Consolidated Statements of Financial Condition under Accounts Payable and Accrued Expenses. 401(k) Plan The Company maintains a 401(k) plan for all eligible employees. Participants are permitted to contribute from 1% to 15% or 60% of their annual compensation up to the maximum permitted under the Internal Revenue Code. The Company provided no matching contribution in 2023 and 2022. Stock-Based Deferral Plan In June 2021, the Company established a stock-based deferral plan for eligible key executives and members of the Board of Directors of the Company to elect to defer compensation received from the Company for their services and make deemed investments of that deferred compensation in shares of the Company’s common stock. At December 31, 2023 and 2022, the Company did not have any obligations under the plan. Employee Stock Ownership Plan (“ESOP”) In conjunction with the Mid-Tier Holding Company’s public stock offering in 2006, the Bank established an ESOP for all eligible employees (substantially all full-time employees). The ESOP borrowed $5,184,200 from the Mid-Tier Holding Company and used those funds to acquire 518,420 shares of the Mid-Tier Holding Company common stock at $10.00 per share. The loan from the Mid-Tier Holding Company, which has been assumed by the Company, carries an interest rate of 8.25% and is repayable in twenty annual installments through 2025. In conjunction with the Company’s second-step conversion offering, on July 12, 2021, the ESOP borrowed $7,827,260 from the Company and used those funds to acquire 782,726 shares of Company common stock at $10.00 per share. The loan from the Company carries an interest rate equal to 3.25% and is repayable in fifteen annual installments through 2035. Each year, the Bank makes discretionary contributions to the ESOP equal to the principal and interest payment required on the loan from the Company. The ESOP may further pay down the principal balance of the loans by using dividends paid, if any, on the shares of Company common stock it owns. The balance remaining on the first ESOP loan was $919,000 and $1,327,000 at December 31, 2023 and 2022. The balance remaining on the second ESOP loan was $6,417,000 and $6,850,000 at December 31, 2023 and 2022. Shares purchased with the loan proceeds serve as collateral for the loan and are held in a suspense account for future allocation among ESOP participants. As the loan principal is repaid, shares will be released from the suspense account and become eligible for allocation. The allocation among plan participants will be as described in the ESOP governing document. ESOP shares initially pledged as collateral were recorded as unearned ESOP shares in the stockholders’ equity section of the consolidated statement of financial condition. Thereafter, on a monthly basis over the terms of the ESOP loans, approximately 2,894 shares for the ESOP established in 2006 and approximately 4,348 shares for the ESOP Note 17 - Benefits Plans (continued) Employee Stock Ownership Plan (“ESOP”)(continued) established in 2022 are committed to be released respectively. Compensation expense is recorded equal to the shares committed to be released multiplied by the average closing price of the Company’s stock during that month. ESOP expense during the years ended December 31, 2023 and 2022, totaled approximately $1,314,000 and $1,075,000, respectively. Dividends on unallocated shares, which totaled approximately $188,000 and $365,000 during 2023 and 2022, respectively, are recorded as a reduction of the ESOP loan. Dividends on allocated shares, which totaled approximately $167,000 and $255,000 during 2023 and 2022, respectively, are charged to retained earnings. ESOP shares are summarized as follows: December 31, 2023 2022 Allocated shares 694,842 607,922 Shares committed to be released 86,920 86,920 Unearned shares 695,647 782,567 Total ESOP Shares 1,477,409 1,477,409 Less allocated shares distributed to former or retired employees (143,612) (122,280) Total ESOP Shares Held by Trustee 1,333,797 1,355,129 Fair value of unearned shares $ 12,340,778 $ 11,675,897 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Stock Based Compensation | |
Stock Based Compensation | Note 18 – Stock Based Compensation At a special shareholders meeting held on September 29, 2022, the Company’s shareholders approved the Company’s 2022 Equity Incentive Plan whereby 1,369,771 shares of the Company’s common stock were reserved from authorized but unissued shares for purposes of grants of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, performance shares and performance units to selected employees and non-employee directors of the Company. The product of the number of shares granted and the grant date market price of the Company’s common stock determine the fair value of restricted stock under the Company’s 2022 Equity Incentive plan. Management recognizes compensation expense for the fair value of restricted stock on a straight-line basis over the requisite service period for the entire award. As of December 31, 2023, there were 132,759 shares available for future awards under this plan, which includes 98,311 shares available for stock options and 34,448 shares available for restricted stock awards. Note 18 – Stock Based Compensation (continued) A summary of the Company’s restricted stock activity and related information for the year ended December 31 follows: 2023 Weighted Average Shares Market Price Outstanding, Beginning of year 352,037 $ 13.67 Granted 4,878 16.88 Forfeited — — Vested 70,407 — Outstanding, end of year 286,508 $ 13.72 2022 Weighted Average Shares Market Price Outstanding, Beginning of year — $ — Granted 352,037 13.67 Forfeited — — Vested — — Outstanding, end of year 352,037 $ 13.67 Compensation expense related to restricted stock was $968,000 and $116,000 for the years ended December 31, 2023 and 2022. At December 31, 2023 and 2022, the total compensation cost related to non-vested awards that has not yet been recognized was $3.8 million and $4.7 million, which is expected to be recognized over the next 5 years. Note 18 – Stock Based Compensation (continued) A summary of the Company’s stock option activity and related information for the years ended December 31 follows: 2023 Weighted Average Options Exercise Price Outstanding, Beginning of year 880,097 $ 13.67 Granted — — Forfeited — — Exercised — — Outstanding, end of year 880,097 $ 13.67 Exercisable at end of year 176,019 13.67 2022 Weighted Average Options Exercise Price Outstanding, Beginning of year — $ — Granted 880,097 13.67 Forfeited — — Exercised — — Outstanding, end of year 880,097 $ 13.67 Exercisable at end of year — — Weighted average fair value of options granted in current year $ 4.36 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Pricing Model Assumption Ranges 2022 Risk-free interest rate 3.87 - 3.97 % Expected volatility 28.79 - 28.94 % Expected dividend yield 1.70 - 1.94 % Expected life 7.50 The Compensation cost related to stock options is recognized based on the fair value of the stock options at the grant date on a straight line basis over the vesting period. Compensation expense related to stock options was $768,000 and $92,000 for the years ended December 31, 2023 and 2022. At December 31, 2023, unrecognized compensation cost related to stock option awards was $3.0 million, which is expected to be recognized over the next 5 years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | Note 19 - Leases The Company has operating leases and finance leases all comprised of real estate property. The operating leases comprise substantially all of the Company’s obligations in which the Company is the lessee, with remaining lease terms ranging between 1 and 10 years. Most operating lease agreements consist of initial lease terms ranging between 5 and 10 years, with options to renew the leases or extend the term. The finance lease has a remaining lease term of 93 years. The payment structure of all leases is fixed rental payments with lease payments increasing on pre-determined dates at either a predetermined amount or change in the consumer price index. In accordance with ASC 842, the Company recognized operating and financing lease assets and corresponding lease liabilities related to office facilities and retail branches. The operating and financing lease assets represent the Company’s right to use an underlying asset for the lease term, and the lease liability represents the Company’s obligation to make lease payments over the lease term. The Company has elected that any short term leases would be expensed as incurred. The operating and financing lease asset and lease liability are determined at the commencement date of the lease based on the present value of the lease payments. Our leases do not provide an implicit interest rate. The company used its incremental borrowing rate, the rate of interest to borrow in a collateralized basis for a similar term, at the lease commencement date. All of the leases are net leases and, therefore, do not contain non-lease components. The Company either pays directly or reimburses the lessor for property and casualty insurance cost and the property taxes assessed on the property, as well as a portion of the common area maintenance associated with the property which are categorized as non-components as outlined in the applicable guidance. Note 19 – Leases (continued) The quantitative data relates to the Company’s leases are as follows (in thousands): December 31, December 31, 2023 2022 Finance Lease Amounts: ROU asset $ 351 $ 355 Lease liability $ 571 $ 533 Operating Lease Amounts: ROU assets $ 4,566 $ 2,312 Lease liabilities $ 4,625 $ 2,363 Finance Lease Cost Amortization of ROU asset $ 4 $ 4 Interest on lease liability $ 38 $ 37 Operating Lease Costs $ 566 $ 567 Cash paid for amounts included in the measurement of lease liabilities Finance lease $ — $ — Operating leases $ 511 $ 558 Weighted-average remaining lease term Finance lease 93 years 94 years Operating leases 8.58 years 6.19 years Weighted-average discount rate Finance lease 9.50 % 9.50 % Operating leases 5.18 % 1.50 % Maturities of lease liabilities at December 31, 2023 are as follows (in thousands): Operating Finance Leases Lease Years ended December 31: 2024 $ 740 $ 30 2025 738 30 2026 622 31 2027 637 36 2028 595 36 Thereafter 2,475 4,016 Total lease payments $ 5,807 $ 4,179 Interest (1,182) (3,608) Lease liability $ 4,625 $ 571 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Contingencies | |
Contingencies | Note 20 – Contingencies The Company and Bank are also subject to claims and litigation that arise primarily in the ordinary course of business. Based on information presently available and advice received from legal counsel representing the Company and Bank in connection with such claims and litigation, it is the opinion of management that the disposition or ultimate determination of such claims and litigation will not have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Company. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures | |
Fair Value Disclosures | Note 21 - Fair Value Disclosures The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company’s securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company has to record at fair value other assets and liabilities on a non-recurring basis, such as securities held to maturity, impaired loans and other real estate owned. U.S. GAAP has established a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s assets that are carried at fair value on a recurring basis and the level that was used to determine their fair value at December 31: Quoted Prices in Significant Other Significant Total Carried Active Markets for Observable Unobservable at Fair Identical Assets Inputs Inputs Value on a (Level 1) (Level 2) (Level 3) Recurring Basis December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, Description 2023 2022 2023 2022 2023 2022 2023 2022 Assets: Marketable equity securities: Mutual funds $ 18,102 $ 18,041 $ — $ — $ — $ — $ 18,102 $ 18,041 Mortgage-backed securities FHLMC — — — 1 — — — 1 Total assets $ 18,102 $ 18,041 $ — $ 1 $ — $ — $ 18,102 $ 18,042 There were no transfers between Level 1 and 2 during the years ended December 31, 2023 and 2022. The Company did not have any liabilities that were carried at fair value on a recurring basis at December 31, 2023 and 2022. Note 21 – Fair Value Disclosures (continued) The following table sets forth the Company’s assets that are carried at fair value on a non-recurring basis and the level that was used to determine their fair value, at December 31: Quoted Prices in Significant Other Significant Total Carried Active Markets for Observable Unobservable at Fair Identical Assets Inputs Inputs Value on a (Level 1) (Level 2) (Level 3) Non-Recurring Basis December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, Description 2023 2022 2023 2022 2023 2022 2023 2022 (In Thousands) Assets: Collateral dependent loans $ — $ — $ — $ — $ 4,385 $ 855 $ 4,385 $ 855 Real estate owned — — — — 1,456 1,456 1,456 1,456 Total assets $ — $ — $ — $ — $ 5,841 $ 2,311 $ 5,841 $ 2,311 The following tables present the qualitative information about non-recurring Level 3 fair value measurements of financial instruments at the periods indicated: At December 31, 2023 Fair Valuation Unobservable Weighted Value Technique Input Range Average (In Thousands) Assets: Collateral dependent loans $ 4,385 Income approach Capitalization rate 6.00 % 6.00 % Real estate owned 1,456 Income approach Capitalization rate 12.00 % 12.00 % At December 31, 2022 Fair Valuation Unobservable Weighted Value Technique Input Range Average (In Thousands) Assets: Impaired loans $ 855 Income approach Capitalization rate 5.60 % 5.60 % Real estate owned 1,456 Income approach Capitalization rate 12.00 % 12.00 % The Company did not have any liabilities that were carried at fair value on a non-recurring basis at December 31, 2023 and 2022. The methods and assumptions used to estimate fair value at December 31, 2023 and 2022 are as follows: For real estate owned, fair value is generally determined through independent appraisals or fair value estimations of the underlying properties which generally include various Level 3 inputs which are not identifiable. The appraisals or fair value estimation may be adjusted by management for qualitative reasons and estimated liquidation expenses. Management’s assumptions may include consideration of location and occupancy of the property and current economic conditions. Subsequently, as these properties are actively marketed, the estimated fair values may be periodically adjusted through incremental subsequent write-downs to reflect decreases in estimated values resulting from sales price observations and the impact of changing economic and market conditions. A loan is considered individually evaluated for credit loss when, based upon current information and events, it is probable that the Company will be unable to collect all scheduled payments in accordance with the contractual terms of the loan. Individually evaluated loans that are collateral dependent are written down to fair value through the establishment of specific reserves, a component of the allowance for credit losses or through partial charge-offs, and Note 21 – Fair Value Disclosures (continued) as such are carried at the lower of cost or the fair value. Estimates of fair value of the collateral are determined based on a variety of information, including available valuations from certified appraisers for similar assets, present value of discounted cash flows and inputs that are estimated based on commonly used and generally accepted industry liquidation advance rates and estimates and assumptions developed by management. The appraisals may be adjusted by management for estimated liquidation expenses and qualitative factors such as economic conditions. If real estate is not the primary source of repayment, present value of discounted cash flows and estimates using generally accepted industry liquidation advance rates are utilized. Due to the multitude of assumptions, many of which are subjective in nature, and the varying inputs and techniques used by appraisers, the Company recognizes that valuations could differ across a wide spectrum of valuation techniques employed and accordingly, fair value estimates for impaired loans are classified as Level 3. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at December 31, 2023 and 2022: Securities Fair values for marketable equity securities are determined by quoted market prices on nationally recognized and foreign securities exchanges (Level 1). Fair values for securities available for sale and held to maturity are determined utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other things. Note 21 - Fair Value Disclosures (continued) Securities (continued) The carrying amounts and estimated fair value of our financial instruments are as follows: Fair Value at December 31, 2023 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Cash and cash equivalents $ 68,671 $ 68,671 $ 68,671 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 18,102 18,102 18,102 — — Securities held to maturity 15,860 13,126 — 13,126 — Loans receivable 1,581,804 1,552,219 — — 1,552,219 Investments in restricted stock 929 929 — 929 — Accrued interest receivable 12,311 12,311 — 12,311 — Financial Liabilities Deposits 1,400,036 1,401,083 — 1,401,083 — Borrowings 64,000 63,053 — 63,053 — Fair Value at December 31, 2022 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Cash and cash equivalents $ 95,308 $ 95,308 $ 95,308 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 18,041 18,041 18,041 — — Securities available for sale 1 1 — 1 — Securities held to maturity 26,395 22,865 — 22,865 — Loans receivable 1,212,219 1,191,483 — — 1,191,483 Investments in restricted stock 1,238 1,238 — 1,238 — Accrued interest receivable 8,597 8,597 — 8,597 — Financial Liabilities Deposits 1,121,955 1,121,107 — 1,121,107 — FHLB of New York advances 21,000 19,437 — 19,437 — |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Related Party Transactions | Note 22 – Related Party Transactions The Company had no loans to related parties at December 31, 2023 and 2022. In addition, the Company did not originate any loans to related parties in 2023 and 2022. Deposits of related parties at the Company totaled $2.1 million and $2.4 million at December 31, 2023 and 2022, respectively. Kevin P. O’Malley is an attorney with Kevin P. O’Malley, P.C., a law firm that provides construction loan closing services to borrowers of the Company. During the fiscal year ended December 31, 2023 and 2022, construction loan borrowers of the Company paid $497,000 and $835,000 respectively in legal fees to Mr. O’Malley’s law firm in connection with closing of construction loans. In addition, in fiscal year 2023 and 2022, the Company paid Mr. O’Malley’s law firm zero and $3,000 for legal services provided on a corporate related matter. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | Note 23 – Revenue Recognition The majority of the Company’s revenues come from interest income and other sources, including loans and securities that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include deposit service charges on deposits, electronic banking fees and charges income, and investment advisory fees. A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as referral fees based month end reports. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2023, the Company did not have any significant contract balances. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the years ended December 31, 2023 and 2022. Sources of revenue outside the scope of ASC 606 are noted as such: December 31, 2023 2022 (In Thousands) Non-interest income: Deposit-related fees and charges $ 55 $ 67 Loan-related fees and charges (1) 892 1,064 Electronic banking fees and charges 944 863 (Loss) gain on disposition of equipment (1) (18) 98 Income from bank owned life insurance (1) 1,013 604 Investment advisory fees 458 474 Realized and unrealized gain (loss) on equity securities (1) 294 (1,573) Miscellaneous (1) 105 86 Total non-interest income $ 3,743 $ 1,683 (1) Not within the scope of ASC 606. Note 23 – Revenue Recognition (continued) A description of the Company’s revenue streams accounted for under ASC 606 is as follows: Service Charges on Deposit Accounts The Company earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company fulfills the customer’s request. The Company discontinued the imposition of overdraft fees on all consumer and business accounts in August 2022. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Electronic Banking Fee Income The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsourced technology solution. Investment Advisory Fees The Company earns fees from investment advisory and financial planning services under the name of Harbor West Financial Planning Wealth Management, a division of the Company through a networking arrangement with a registered broker-dealer and investment advisor. The registered broker-dealer deducts investment advisory fees and financial planning services fees from the client’s assets under management and remits the fees, net of administrative fees, to the Company on a monthly basis. The Company recognizes the fees into non-interest income upon receipt of the monthly remittances. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 24 – Recent Accounting Pronouncements Accounting Standards Pending Adoption: In July 2023, the FASB issued ASU 2023-03, Presentation of Financial Statements (Topic 205), Income Statement-Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation-Stock Compensation (Topic 718), which amends or supersedes various SEC paragraphs within the Codification to conform to past SEC announcements and guidance issued by the SEC. The ASU does not provide any new guidance so there is no transition or effective date associated with it. This ASU did not have a significant impact on the Company’s financial statements. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvement: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, which incorporates several SEC disclosure requirements into US GAAP and adds interim and annual disclosure requirements to a variety of topics in the Accounting Standards Codification, including those focusing on accounting changes, earnings per share, debt and repurchase agreements. For entities subject to the SEC disclosure requirements and those “required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer,” the US GAAP requirements will be effective when the removal of the related SEC rule is effective. Early adoption is not permitted for these entities. For all other entities, the effective date will be two years later, and early adoption is permitted. That is, financial statements issued after the effective date of each amendment are required to include on a prospective basis the related disclosure incorporated into US GAAP by this ASU. However, if the SEC does not act to remove its related requirements by June 30, 2027, any related FASB amendments will be removed from the Codification and will not be effective for any entities. Note 24 – Recent Accounting Pronouncements (continued) In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, requires the amount of net income taxes paid for federal, state, and foreign taxes, as well as the amount paid to any jurisdiction that net taxes exceed a 5% quantitative threshold. The amendments will require the disclosure of pre-tax income disaggregated between domestic and foreign, as well as income tax expense disaggregated by federal, state, and foreign. The amendment also eliminates certain disclosures related to unrecognized tax benefits and certain temporary differences. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted in any annual period where financial statements have not yet been issued. The amendments should be applied on a prospective basis but retrospective application is permitted. The Company does not expect adoption of the standard to have a material impact on its Consolidated Financial Statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events | |
Subsequent Events | Note 25 - Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Parent Company Only Financial Information | |
Parent Company Only Financial Information | Note 26 – Parent Company Only Financial Information The following are the condensed financial statements for Northeast Community Bancorp, Inc. (Parent company only) as of December 31, 2023 and 2022 and for the years then ended. Condensed Statements of Financial Condition December 31, 2023 2022 (In Thousand) Assets Cash and due from banks $ 4,268 $ 20,334 Investment in subsidiary 254,654 220,706 Loans receivable, net of allowance for credit losses of $45 and $92, respectively (1) 14,121 13,688 ESOP loan receivable 7,336 8,177 Total Assets $ 280,379 $ 262,905 Liabilities and Stockholders’ Equity Accounts payable and accrued expenses $ 1,054 $ 916 Total Liabilities 1,054 916 Total Stockholders’ Equity 279,325 261,989 Total Liabilities and Stockholders’ Equity $ 280,379 $ 262,905 (1) Represents participation loans purchased from the Bank Note 26 – Parent Company Only Financial Information (continued) Condensed Statements of Income and Comprehensive Income Years Ended December 31, 2023 2022 (In Thousand) Interest income – loans $ 1,371 $ 240 Interest income – ESOP loan 333 377 Interest income – interest-earning deposits 179 343 Dividend income from subsidiary 14,000 — Operating expenses (2,298) (956) Income before Income Tax Expense and Equity in Undistributed Earnings of Subsidiary 13,585 4 Income tax (benefit) expense (120) 1 Income before Equity in Undistributed Earnings of Subsidiary 13,705 3 Equity in undistributed earnings of subsidiary 32,571 24,840 Net Income $ 46,276 $ 24,843 Comprehensive Income $ 46,336 $ 25,138 Statements of Cash Flow Years Ended December 31, 2023 2022 (In Thousand) Cash Flows from Operating Activities Net income $ 46,276 $ 24,843 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (32,571) (24,840) Other, net 2,183 544 Net Cash Provided by Operating Activities 15,888 547 Cash Flows from Investing Activities Repayment of ESOP loan 841 796 Net increase in loans (433) (9,211) Net Cash Provided (Used in) by Investing Activities 408 (8,415) Cash Flows from Financing Activities Cash dividends paid (3,652) (6,868) Stock repurchase (28,710) (9,318) Net Cash Used in Financing Activities (32,362) (16,186) Net Decrease in Cash and Cash Equivalents (16,066) (24,054) Cash and Cash Equivalents – Beginning 20,334 44,388 Cash and Cash Equivalents – Ending $ 4,268 $ 20,334 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Nature of Business: | Nature of Business: Northeast Community Bancorp, Inc. (the “Company”) is a Maryland corporation that was incorporated in May 2021 to be the successor to NorthEast Community Bancorp, Inc., a federally chartered corporation (the “Mid-Tier Holding Company”), upon completion of the second-step conversion of NorthEast Community Bank (the “Bank”) from the two-tier mutual holding company structure to the stock holding company structure. NorthEast Community Bancorp, MHC was the former mutual holding company for the Mid-Tier Holding Company prior to the completion of the second-step conversion. In conjunction with the second-step conversion, each of NorthEast Community Bancorp, MHC and the Mid-Tier Holding Company merged out of existence and now cease to exist. The Bank is a New York State-chartered savings bank and the Company’s primary activity is the ownership and operation of the Bank. The Bank is headquartered in White Plains, New York. The Bank was founded in 1934 and is a community oriented financial institution dedicated to serving the financial services needs of individuals and businesses within its market area. The Bank currently conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex and Norfolk Counties in Massachusetts and three loan production offices located in White Plains, New York, New City, New York and Danvers, Massachusetts. The Bank’s principal business consists of originating primarily construction loans and, to a lesser extent, commercial and industrial loans, and multifamily and mixed-use residential real estate loans and non-residential real estate loans. The Bank offers a variety of retail deposit products to the general public in the areas surrounding its main office and its branch offices, with interest rates that are competitive with those of similar products offered by other financial institutions operating in its market area. The Bank also utilizes borrowings as a source of funds. The Bank’s revenues are derived primarily from interest on loans and, to a lesser extent, interest on investment securities and mortgage-backed securities. The Bank also generates revenues from other income including deposit fees, service charges and investment advisory fees. The Bank also offers investment advisory and financial planning services under the name Harbor West Wealth Management Group, a division of the Bank, through a networking arrangement with a registered broker-dealer and investment advisor. The agreement to sell all the Bank’s assets relating to Harbor West Wealth Management Group to a third party was executed in December 2023, with the transaction closing in January 2024. New England Commercial Properties LLC (“NECP”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2007 to facilitate the purchase or lease of real property by the Bank. New England Commercial Properties, LLC currently owns one foreclosed property located in Pennsylvania. NECB Financial Services Group, LLC (“NECB Financial”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in the third quarter of 2012 as a complement to Harbor West Wealth Management Group to sell life insurance and fixed rate annuities. NECB Financial is licensed in New York State. We terminated our license in Connecticut on February 22, 2024 due to the sale of all the Bank’s assets relating to Harbor West Wealth Management Group to a third party in January 2024. Note 1 - Summary of Significant Accounting Policies (continued) 72 West Eckerson LLC (“72 West Eckerson”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2015 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch locations in Spring Valley, New York and Monroe, New York. 166 Route 59 Realty LLC (“166 Route 59 Realty”), a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch located in Airmont, New York. 3 Winterton Realty LLC, a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the property for a Bank branch located in Bloomingburg, New York. |
Principles of Consolidation: | Principles of Consolidation: The consolidated financial statements include the accounts of the Company, the Bank, NECP, NECB Financial, 72 West Eckerson, 166 Route 59 Realty, and 3 Winterton Realty LLC (collectively the “Company”) and have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant inter-company accounts and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company and its subsidiaries conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-K and Article 10 of Regulation S-X. When necessary, certain reclassifications were made to prior year amounts to conform with current year presentation. |
Use of Estimates: | Use of Estimates: The preparation of consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect certain recorded amounts and disclosures. Accordingly, actual results could differ from those estimates. The most significant estimate pertains to the allowance for credit losses. The borrowers’ abilities to meet contractual obligations and collateral value are the most significant assumptions used to arrive at the estimate. The risks associated with such estimates arise when unforeseen conditions affect the borrowers’ abilities to meet the contractual obligations of the loan and result in a decline in the value of the supporting collateral. Such unforeseen changes may have an adverse effect on the consolidated results of operations and financial position of the Company. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. |
Cash and Cash Equivalents: | Cash and Cash Equivalents: Cash and cash equivalents include cash and amounts due from depository institutions and interest-bearing deposits in other banks, all with original maturities of 90 days or less. |
Certificates of Deposit: | Certificates of Deposit: Certificates of deposit are carried at cost which approximates fair value and have maturities of less than one year. |
Securities: | Securities: The Company classifies its debt securities as held to maturity or available for sale at the time of purchase. Held to maturity securities are those debt securities which management has the intent and the Company has the ability to hold to maturity and are reported at amortized cost. Available-for-sale securities are those debt securities which are neither held to maturity securities nor trading securities and are reported at fair value, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Premiums and discounts on all securities are generally amortized or accreted to the maturity date utilizing the level-yield method taking into consideration the impact of principal amortization and prepayments, as applicable. Gain or loss on sales of securities is based on the specific identification method. Effective January 1, 2023, the Company adopted the provisions of ASC 326 and modified its accounting policy for the assessment of available for sale securities for impairment. Under ASC 326, for available-for-sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available-for-sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses. Under ASC 326, changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Equity securities are carried at fair value with changes in fair value reported in income. |
Loans Receivable: | Loans Receivable: Loans are stated at unpaid principal balances plus net deferred loan origination fees and costs less an allowance for credit losses. Interest on loans receivable is recorded on the accrual basis. An allowance for uncollected interest is established on loans where management has determined that the borrowers may be unable to meet contractual principal and/or interest obligations or where interest or principal is 90 days or more past due, unless the loans are well secured with a reasonable expectation of collection. When a loan is placed on nonaccrual, an allowance for uncollected interest is established and charged against current income. Thereafter, interest income is not recognized unless the financial condition and payment record of the borrower warrant the recognition of interest income. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Interest on loans that have been restructured is accrued according to the renegotiated terms. Net loan origination fees and costs are deferred and amortized into interest income over the contractual lives of the related loans by use of the level yield method. Past due status of loans is based upon the contractual due date. Note 1 - Summary of Significant Accounting Policies (continued) Prepayment penalties received on loans which pay in full prior to the scheduled maturity are included in interest income in the period the prepayment penalties are collected. |
Accounting Pronouncements Adopted in 2023: | Accounting Pronouncements Adopted in 2023: Effective January 1, 2023, the Company adopted Accounting Standards Topic 326, “Financial Instruments – Credit Losses” which replaced the previously existing U.S. GAAP “incurred loss” approach to “expected credit losses” approach, which is referred as Current Expected Credit Losses (“CECL”). CECL measures the credit loss associated with financial assets carried at amortized cost, including loan receivables, held-to-maturity debt securities, off balance sheet credit exposures. The Company adopted Topic 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balances sheet exposures. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Upon adoption, we recorded a cumulative-effect adjustment totaling $134,000, or $99,000, net of tax, to reduce retained earnings. The transition adjustment includes the adoption and changes to the three applicable components of the allowance for credit losses (“ACL”): a decrease of $1.6 million in the allowance for credit losses related to loans, an increase of $132,000 in the allowance for credit losses related to held-to-maturity debt securities, and an increase of $1.6 million in the allowance for credit losses related to off-balance sheet items. The following table illustrates the impact of adopting ASC 326: January 1, 2023 Pre-Adoption Adoption Impact As Reported (In Thousands) Assets ACL on debt securities held-to-maturity Municipal Bonds $ - $ 132 $ 132 ACL on loan receivables Residential real estate 528 895 1,423 Non-residential real estate 131 7 138 Construction 3,835 (2,086) 1,749 Commercial and industrial 955 (437) 518 Consumer 18 44 62 Unallocated 7 (7) - Liabilities ACL for off-balance sheet exposure - 1,586 1,586 $ 5,474 $ 134 $ 5,608 |
Allowance for Credit Losses - Loans | Allowance for Credit Losses - Loans The allowance for credit losses related to loans is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. Note 1 - Summary of Significant Accounting Policies (continued) The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses related to loans is measured on a collective (pool) basis when similar risk characteristics exist. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses related to loans when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include residential real estate, non-residential real estate, construction, commercial and industrial business, and consumer. For most segments the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to each individual loan within the segment. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount. The Company estimates the allowance for credit losses related to loans via a quantitative analysis which considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. Also included in the allowance for credit losses related to loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, might not be adequately represented in the quantitative analysis or the forecasts described above. Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, legal and regulatory requirements, among others. Qualitative loss factors are applied to each portfolio segment with the amounts judgmentally determined by the relative risk to the most severe loss periods identified in the historical loan charge-offs of the Company. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on the loan’s disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, the loan’s observable market price or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. |
Allowance for Credit Losses - Held-to-Maturity Debt Securities | Allowance for Credit Losses – Held-to-Maturity Debt Securities The allowance for credit losses related to held-to-maturity debt securities is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of held-to-maturity debt securities to present the net amount expected to be collected on the held-to-maturity debt securities. Losses, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When an investment is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. |
Allowance for Credit Losses Related to Off-Balance Sheet Credit Exposures | Allowance for Credit Losses Related to Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses related to off-balance sheet credit exposures is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Based on management’s comprehensive analysis of the credit portfolio, management believes the allowance for credit losses is appropriate as of December 31, 2023 and 2022, respectively. |
Concentration of Risk: | Concentration of Risk: The Company’s lending activity is concentrated in construction and permanent loans secured by multi-family and non-residential real estate located primarily in the Northeast and Mid-Atlantic regions of the United States. As of December 31, 2023 and 2022, the Company had majority of construction loans located in New York state, including $626.0 million and $440.6 million in the Bronx, $198.5 million and $122.4 million in the Town of Monroe, $133.7 million and $103.8 million in the Hamlet of Monsey, $105.9 million and $104.3 million in the Village of Spring Valley, and $18.8 million and $31.8 million in Brooklyn. The Company also had deposits in excess of the FDIC insurance limit at other financial institutions. At December 31, 2023 and 2022, such deposits totaled $43.2 million and $59.0 million held by the Federal Reserve Bank of New York, $13.7 million and $26.4 million held by the Federal Home Loan Bank of New York, and $430,000 and $1.0 million held by Atlantic Community Bankers Bank (“ACBB”). Generally, deposits in excess of $250,000 are not insured by the FDIC. |
Premises and Equipment: | Premises and Equipment: Land is stated at cost. Buildings and improvements, leasehold improvements and furnishings and equipment are stated at cost less accumulated depreciation and amortization computed on the straight-line method over the following useful lives: Years Buildings 30 – 50 Building improvements 10 – 50 Leasehold improvements 1 – 15 Furnishings and equipment 3 – 5 Maintenance and repairs are charged to operations in the years incurred. Note 1 - Summary of Significant Accounting Policies (continued) Property and equipment are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable. In evaluating property and equipment for recoverability, we use our best estimate of future cash flows expected to result from the use of the asset and its eventual disposition. To the extent that estimated future undiscounted net cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized equal to the difference between the carrying value of such asset and its fair value. The Company did not have impairment recorded for property and equipment in 2023 and 2022. |
Bank Owned Life Insurance ("BOLI"): | Bank Owned Life Insurance (“BOLI”): The Company owns life insurance on the lives of certain of its officers. The cash surrender value is recorded as an asset and the change in cash surrender value is included in non-interest income and is tax-exempt. The BOLI can be liquidated, if necessary, with tax consequences. However, the Company intends to hold these policies and, accordingly, the Company has not provided for deferred income taxes on the earnings from the increase in cash surrender value. |
Investments in Restricted Stock: | Investments in Restricted Stock: Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula. The Company also owns restricted stock in Atlantic Community Bancshares, Inc. (ACBI), holding company of ACBB, a correspondent banker’s bank. These stocks are carried at cost. At December 31, 2023 and 2022, the Company had $859,000 and $1.2 million in FHLB stock, and $70,000 and $70,000 in ACBB stocks. |
Goodwill: | Goodwill: Goodwill at December 31, 2023 and 2022 totaled zero and $200,000, respectively, and consists of goodwill acquired in the business combination completed by the Company in November 2007. The Company tests goodwill during the fourth quarter of each year for impairment, or more frequently if certain indicators are present or changes in circumstances suggest that impairment may exist. The Company utilizes a two-step approach. The first step requires a comparison of the carrying value of the reporting unit to the fair value of the unit. The Company estimates the fair value of the reporting unit through internal analyses and external valuation, which utilizes an income approach based on the present value of future cash flows. If the carrying value of the reporting unit exceeds its fair value, impairment exists and the Company will perform the second step of the goodwill impairment test to measure the amount of impairment loss, if any. The second step of the goodwill impairment test, if necessary, compares the implied fair value of a reporting unit’s goodwill with its carrying value. The implied fair value of goodwill is determined in the same manner that the amount of goodwill recognized in a business combination is determined. The Company allocates the fair value of the reporting unit to all of the assets and liabilities of that unit, including identifiable intangible assets, as if the reporting unit had been acquired in a business combination. Any excess of the value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. Impairment charges of $451,000 were recorded in 2022 due to increased capitalization rate when evaluating the investment value of the goodwill. As of December 31, 2023, the goodwill was eliminated along with the sale of Harbor West Wealth Management Group to a third party in December 2023. The sale resulted in a total of $138,000 loss recognized on the consolidated statement of income. |
Real Estate Owned: | Real Estate Owned: Real estate owned is carried at the lower of cost or fair value of the related property, as determined by current appraisals less estimated costs to sell. Foreclosed real estate is initially recorded at the fair value of property acquired minus estimated costs to sell at the date of foreclosure, establishing a new cost basis. Write-downs on these properties, which occur after the initial transfer from the loan portfolio, are recorded as operating expenses. Costs of holding such properties are charged to non-interest expense in the current period. Gains, to the extent allowable, and losses Note 1 - Summary of Significant Accounting Policies (continued) on the disposition of these properties are reflected in the real estate owned expense in the consolidated statement of income. The Company wrote down $540,000 in 2022 due to increased capitalization rate in evaluating the fair value of the properties. No write-downs were recorded in 2023. |
Property Held for Investment: | Property Held for Investment: Land is stated at cost. Buildings and improvements are stated at cost less accumulated depreciation computed on the straight-line method over the useful lives between 30 to 50 years for buildings and 10 to 50 years for building improvements. Property held for investment is evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable. In evaluating property held for investment for recoverability, we use our best estimate of future cash flows expected to result from the use of the asset and its eventual disposition. To the extent that estimated future undiscounted net cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized equal to the difference between the carrying value of such asset and its fair value. The Company did not have impairment recorded for property held for investment in 2023 and 2022. |
Income Taxes: | Income Taxes: The Company files a consolidated federal income tax return. Income taxes are allocated to the Company, Bank, NECP, and NECB Financial based upon their respective income or loss included in the consolidated income tax return. The Company, the Bank, NECP, and NECB Financial file combined or separate state and city income tax returns depending on the particular requirements of each jurisdiction. Federal, state and city income tax expense has been provided on the basis of reported income. The amounts reflected on the tax returns differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted for as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax base. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided, when necessary, for that portion of the asset, which is not more likely than not to be realized. The Company accounts for uncertainty in income taxes recognized in its consolidated financial statements in accordance with ASC Topic 740, “Income Taxes”, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has not identified any significant income tax uncertainties through the evaluation of its income tax positions for the years ended December 31, 2023 and 2022, and has not recognized any liabilities for tax uncertainties as of December 31, 2023 and 2022. The Company’s policy is to recognize income tax related interest and penalties in income tax expense; there were no such amounts during the years ended December 31, 2023 and 2022. The tax years subject to examination by federal, state, and city taxing authorities are 2020 through 2023. |
Other Comprehensive Income (Loss): | Other Comprehensive Income (Loss): The Company records in accumulated other comprehensive income (loss), net of related deferred income taxes, unrealized gains and losses on available for sale securities and the prior service cost and actuarial gains and losses related to the Outside Directors Retirement Plan (“DRP”) that have not yet been recognized in expense. Note 1 - Summary of Significant Accounting Policies (continued) Gains and losses on the sale of securities, if any, are reclassified to non-interest income upon the sale of the related securities or upon the recognition of a security impairment loss and a portion of the prior service cost and actuarial gains and losses of the DRP are reclassified to non-interest expense. At December 31, 2023, accumulated other comprehensive income totaled $317,000 and included $352,000 in prior service cost and actuarial gains of the DRP net of $35,000 of related deferred income benefits. At December 31, 2022, accumulated other comprehensive income totaled $156,000 and included $197,000 in prior service cost and actuarial losses of the DRP net of $41,000 of related deferred income taxes. |
Earnings per Share: | Earnings per Share: Basic earnings per share is calculated by dividing the net income available to common stockholders by the weighted-average number of common shares outstanding during the period less any unvested restricted shares. Unallocated common shares held by the Employee Stock Ownership Plan (“ESOP”) are not included in the weighted-average number of common shares outstanding for purposes of calculating basic net income per common share until they are committed to be released. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. The following table sets forth the computations of basic and diluted earnings per share: December 31, 2023 2022 (In Thousands, except per share data) Net income (basic and diluted) $ 46,276 $ 24,843 Weighted average shares issued 14,983 16,309 Less: Weighted average unearned ESOP shares (736) (822) Less: Weighted average unvested restricted shares (317) (54) Basic weighted average shares outstanding 13,930 15,433 Add: Dilutive effect of restricted stock 6 293 Add: Dilutive effect of stock option — — Diluted weighted average shares outstanding 13,936 15,726 Net income per share Basic $ 3.32 $ 1.61 Diluted $ 3.32 $ 1.58 There were 880,097 stock options outstanding at December 31, 2023 and 2022 respectively that were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive. |
Stockholders' Equity: | Stockholders’ Equity: The authorized capital stock of the Company under its federal charter consists of 75,000,000 shares of common stock, par value of $0.01 per share, and 25,000,000 shares of preferred stock, par value of $0.01 per share. Each share of common stock has the same relative rights as, and is identical in all respects with, each other share of common stock. At December 31, 2023 and 2022, the Company has issued outstanding |
Employee Stock Ownership Plan (ESOP): | Employee Stock Ownership Plan (ESOP): The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of shareholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. Dividends on unallocated ESOP shares are recorded as a reduction of the ESOP loan. |
Restricted Stock: | Restricted Stock: The Company recognizes compensation expense for the fair value of the restricted stock on a straight-line basis over the requisite service period for the entire award. The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted stock under the Company’s 2022 Equity Incentive Plan. |
Stock Option Plan: | Stock Option Plan: The Company recognizes the value of share-based payment transactions as compensation costs in the financial statements over the period that an employee provides service in exchange for the award. The fair value of the share-based payments for stock options is estimated using the Black-Scholes option-pricing model on the grant date. The Company accounts for forfeitures as they occur. |
Stock Repurchases: | Stock Repurchases: The Company records common stock repurchases at cost and retires the common shares with a charge to common stock and additional paid-in capital. |
Segment Information: | Segment Information: The Company reports certain financial information about significant revenue-producing segments of the business for which such information is available and utilized by the chief operating decision makers. Substantially most of the Company’s operations occur through the bank and involve the delivery of loan and deposit products to customers. Small portion of the Company’s operations occurs through wealth management advisory service to customers. Management makes operating decisions and assesses performance based on an ongoing review of its banking and advisory service. The wealth management operation does not meet the quantitative threshold requirement to be disclosed separately. |
Off-Balance-Sheet Financial Instruments: | Off-Balance-Sheet Financial Instruments: In the ordinary course of business, the Company enters into off-balance-sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the consolidated statement of financial condition when funded. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of impact of adopting ASC 326 | January 1, 2023 Pre-Adoption Adoption Impact As Reported (In Thousands) Assets ACL on debt securities held-to-maturity Municipal Bonds $ - $ 132 $ 132 ACL on loan receivables Residential real estate 528 895 1,423 Non-residential real estate 131 7 138 Construction 3,835 (2,086) 1,749 Commercial and industrial 955 (437) 518 Consumer 18 44 62 Unallocated 7 (7) - Liabilities ACL for off-balance sheet exposure - 1,586 1,586 $ 5,474 $ 134 $ 5,608 |
Schedule of useful life of property | Years Buildings 30 – 50 Building improvements 10 – 50 Leasehold improvements 1 – 15 Furnishings and equipment 3 – 5 |
Computations of basic and diluted earnings per share | December 31, 2023 2022 (In Thousands, except per share data) Net income (basic and diluted) $ 46,276 $ 24,843 Weighted average shares issued 14,983 16,309 Less: Weighted average unearned ESOP shares (736) (822) Less: Weighted average unvested restricted shares (317) (54) Basic weighted average shares outstanding 13,930 15,433 Add: Dilutive effect of restricted stock 6 293 Add: Dilutive effect of stock option — — Diluted weighted average shares outstanding 13,936 15,726 Net income per share Basic $ 3.32 $ 1.61 Diluted $ 3.32 $ 1.58 |
Mutual Holding Company Reorga_2
Mutual Holding Company Reorganization and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Mutual Holding Company Reorganization and Regulatory Matters | |
Schedule of bank's capital levels | Regulatory Capital Requirements Minimum Capital For Classification as Actual Adequacy (1) Well-Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of December 31, 2023: Total capital (to risk-weighted assets) $ 255,252 13.43 % $ ≥ 152,097 ≥ 8.00 % $ ≥ 190,121 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 249,013 13.10 ≥ 114,072 ≥ 6.00 ≥ 152,097 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 249,013 13.10 ≥ 85,554 ≥ 4.50 ≥ 123,579 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 249,013 14.43 ≥ 69,007 ≥ 4.00 ≥ 86,259 ≥ 5.00 As of December 31, 2022: Total capital (to risk-weighted assets) $ 222,728 13.66 % $ ≥ 130,429 ≥ 8.00 % $ ≥ 163,036 ≥ 10.00 % Tier 1 capital (to risk-weighted assets) 217,283 13.33 ≥ 97,822 ≥ 6.00 ≥ 130,429 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) 217,283 13.33 ≥ 73,366 ≥ 4.50 ≥ 105,973 ≥ 6.50 Core (Tier 1) capital (to adjusted total assets) 217,283 16.50 ≥ 52,687 ≥ 4.00 ≥ 65,858 ≥ 5.00 (1) Ratios do not include the capital conservation buffer. |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments with Off-Balance Sheet Risk | |
Schedule of financial instruments with off-balance sheet risk | December 31, 2023 2022 (In Thousands) Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 125,885 $ 164,903 Construction loans in process 481,277 637,427 Stand-by letters of credit 9,508 12,451 Commitments to fund unused lines of credit: Commercial and industrial lines 102,903 133,794 Consumer lines 67 86 $ 719,640 $ 948,661 |
Equity Securities (Tables)
Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Securities | |
Schedule of equity securities | December 31, 2023 2022 (In Thousands) Equity Securities, at Fair Value $ 18,102 $ 18,041 |
Schedule of unrealized losses recognized in net income on equity securities | December 31, 2023 2022 (In Thousands) Net unrealized gain (loss) recognized on equity securities during the period $ 61 $ (1,902) Capital gain realized on equity securities during the period 233 329 Net losses realized on the sale of equity securities during the period — — Realized and unrealized net gain (loss) recognized on equity securities held at the reporting date $ 294 $ (1,573) |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Securities Available-for-Sale | |
Schedule of portfolio of securities available-for-sale | December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Federal Home Loan Mortgage Corporation $ 1 $ — $ — $ 1 $ 1 $ — $ — $ 1 |
Securities Held-to-Maturity (Ta
Securities Held-to-Maturity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Securities Held-to-Maturity | |
Summary of securities held-to-maturity portfolio | December 31, 2023 Gross Gross Allowance Amortized Unrealized Unrealized Fair for Cost Gains Losses Value Credit Loss (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 452 $ — $ 7 $ 445 $ — Federal Home Loan Mortgage Corporation 868 — 114 754 — Federal National Mortgage Association 1,985 — 198 1,787 — Collateralized mortgage obligations – GSE 2,889 — 580 2,309 — Total mortgage-backed securities 6,194 — 899 5,295 — Municipal Bonds 9,802 — 1,971 7,831 136 $ 15,996 $ — $ 2,870 $ 13,126 $ 136 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) Mortgage-backed securities – residential: Government National Mortgage Association $ 523 $ — $ 18 $ 505 Federal Home Loan Mortgage Corporation 961 — 129 832 Federal National Mortgage Association 2,308 — 250 2,058 Collateralized mortgage obligations – GSE 3,043 — 506 2,537 Total mortgage-backed securities 6,835 — 903 5,932 Municipal Bonds 9,546 — 2,524 7,022 U.S. Treasury securities 10,014 — 103 9,911 $ 26,395 $ — $ 3,530 $ 22,865 |
Schedule of contractual final maturities | December 31, 2023 Amortized Fair Cost Value (In Thousands) Due within one year $ 712 $ 639 Due after one but within five years 2,024 1,733 Due after five but within ten years 2,872 2,666 Due after ten years 10,388 8,088 $ 15,996 $ 13,126 |
Schedule of allowance for credit losses for debt securities held-to-maturity | Municipal Bonds Balance – December 31, 2022 $ - Impact of adopting ASC 326 132 Provision for credit loss 4 Balance - December 31, 2023 $ 136 |
Schedule of unrealized losses and the fair value | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In Thousands) December 31, 2023: Mortgage-backed securities - residential: Government National Mortgage Association $ — $ — $ 445 $ 7 $ 445 $ 7 Federal Home Loan Mortgage Corporation — — 754 114 754 114 Federal National Mortgage Association — — 1,787 198 1,787 198 Collateralized mortgage obligations – GSE — — 2,309 580 2,309 580 Total mortgage-backed securities $ — $ — $ 5,295 $ 899 $ 5,295 $ 899 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In Thousands) December 31, 2022: Mortgage-backed securities - residential: Government National Mortgage Association $ 505 $ 18 $ — $ — $ 505 $ 18 Federal Home Loan Mortgage Corporation — — 824 129 824 129 Federal National Mortgage Association 478 33 1,580 217 2,058 250 Collateralized mortgage obligations – GSE 1,777 344 759 162 2,536 506 Total mortgage-backed securities 2,760 395 3,163 508 5,923 903 Municipal Bonds 444 39 6,579 2,485 7,023 2,524 U.S. Treasury securities 9,911 103 — — 9,911 103 $ 13,115 $ 537 $ 9,742 $ 2,993 $ 22,857 $ 3,530 |
Loans Receivable and the Allo_2
Loans Receivable and the Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans Receivable and the Allowance for Credit Losses | |
Summary of composition of loans | December 31, 2023 2022 (In Thousands) Residential real estate: One-to-four family $ 5,252 $ 5,467 Multi-family 198,927 123,385 Mixed-use 29,643 21,902 Total residential real estate 233,822 150,754 Non-residential real estate 21,130 25,324 Construction 1,219,413 930,628 Commercial and industrial 111,116 110,069 Consumer 1,240 546 Total Loans 1,586,721 1,217,321 Deferred loan costs, net 176 372 Allowance for credit losses (5,093) (5,474) $ 1,581,804 $ 1,212,219 |
Schedule of analysis of the activity in the allowance for loan losses | At December 31, 2023: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for credit losses: Ending balance $ 2,433 $ 126 $ 1,914 $ 472 $ 148 $ — $ 5,093 Ending balance: individually evaluated for credit loss $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for credit loss $ 2,433 $ 126 $ 1,914 $ 472 $ 148 $ — $ 5,093 Loans receivable: Ending balance $ 233,822 $ 21,130 $ 1,219,413 $ 111,116 $ 1,240 $ — $ 1,586,721 Ending balance: individually evaluated for credit loss $ — $ — $ 4,385 $ — $ — $ — $ 4,385 Ending balance: collectively evaluated for credit loss $ 233,822 $ 21,130 $ 1,215,028 $ 111,116 $ 1,240 $ — $ 1,582,336 At December 31, 2022: Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Ending balance $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Loans receivable: Ending balance $ 150,754 $ 25,324 $ 930,628 $ 110,069 $ 546 $ — $ 1,217,321 Ending balance: individually evaluated for impairment $ 855 $ — $ — $ — $ — $ — $ 855 Ending balance: collectively evaluated for impairment $ 149,899 $ 25,324 $ 930,628 $ 118,378 $ 546 $ — $ 1,216,466 Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for credit losses: Balance - December 31, 2022 $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 Impact of adopting ASC 326 895 7 (2,086) (437) 44 (7) (1,584) Charge-offs — — (159) — (154) — (313) Recoveries — — — — — — — Provision (Benefit) 1,010 (12) 324 (46) 240 — 1,516 Balance - December 31, 2023 $ 2,433 $ 126 $ 1,914 $ 472 $ 148 $ — $ 5,093 Non- Commercial Residential residential and Real Estate Real Estate Construction Industrial Consumer Unallocated Total (In Thousands) Allowance for loan losses: Balance - December 31, 2021 $ 571 $ 381 $ 3,143 $ 973 $ 10 $ 164 $ 5,242 Charge-offs (86) — (328) — (35) — (449) Recoveries 189 53 — — — — 242 Provision (Benefit) (146) (303) 1,020 (18) 43 (157) 439 Balance - December 31, 2022 $ 528 $ 131 $ 3,835 $ 955 $ 18 $ 7 $ 5,474 |
Summary of recorded investment, unpaid principal balance and allocated allowance for loan losses for loans that were considered impaired | As of and for the Year Ended December 31, 2023: Recorded Unpaid Principal Related Average Recorded Interest Income 2023 - Individually evaluated Investment Balance Allowance Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate $ — $ — $ — $ — $ — Non-residential real estate — — — — — Construction 4,385 4,353 — 5,930 — Commercial and industrial — — — — — 4,385 4,353 — 5,930 — With an allowance recorded — — — — — Total: Residential real estate — — — — — Non-residential real estate — — — — — Construction 4,385 4,353 — 5,930 — Commercial and industrial — — — — — $ 4,385 $ 4,353 $ — $ 5,930 $ — As of and for the Year Ended December 31, 2022: Recorded Unpaid Principal Related Average Recorded Interest Income 2022 - Impaired Investment Balance Allowance Investment Recognized (In Thousands) With no related allowance recorded: Residential real estate $ 855 $ 769 $ — $ 863 $ 43 Non-residential real estate — — — 385 14 Construction — — — — — Commercial and industrial — — — — — 855 769 — 1,248 57 With an allowance recorded — — — — — Total: Residential real estate 855 769 — 863 43 Non-residential real estate — — — 385 14 Construction — — — — — Commercial and industrial — — — — — $ 855 $ 769 $ — $ 1,248 $ 57 |
Schedule of age analysis of past due loans | Age Analysis of Past Due Loans as of December 31, 2023: Recorded Investment > 30 – 59 Days 60 – 89 Days Greater Than Total Past Total Loans 90 Days and Past Due Past Due 90 Days Due Current Receivable Accruing (In Thousands) Residential real estate: One- to four-family $ — $ — $ — $ — $ 5,252 $ 5,252 $ — Multi-family — — — — 198,927 198,927 — Mixed-use — — — — 29,643 29,643 — Non-residential real estate — — — — 21,130 21,130 — Construction loans 2,319 — 4,385 6,704 1,212,709 1,219,413 — Commercial and industrial loans — — — — 111,116 111,116 — Consumer 1 — — 1 1,239 1,240 — $ 2,320 $ — $ 4,385 $ 6,705 $ 1,580,016 $ 1,586,721 $ — Age Analysis of Past Due Loans as of December 31, 2022: Recorded Investment 30 – 59 Days 60 – 89 Days Greater Than Total Past Total Loans > 90 Days and Past Due Past Due 90 Days Due Current Receivable Accruing (In Thousands) Residential real estate: One- to four-family $ — $ — $ — $ — $ 5,467 $ 5,467 $ — Multi-family — 946 — 946 122,439 123,385 — Mixed-use — — — — 21,902 21,902 — Non-residential real estate — — — — 25,324 25,324 — Construction loans — — — — 930,628 930,628 — Commercial and industrial loans — — — — 110,069 110,069 — Consumer — — — — 546 546 — $ — $ 946 $ — $ 946 $ 1,216,375 $ 1,217,321 $ — |
Summary of risk category of loans | Revolving Revolving Term Loans Amortized Costs Basis by Origination Year Loans Loans Amortized Converted December 31, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate Risk Rating Pass $ 81,379 $ 71,932 $ 24,504 $ 10,696 $ 1,326 $ 43,070 $ - $ - $ 232,907 Special Mention - - - 915 - - - - 915 Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 81,379 $ 71,932 $ 24,504 $ 11,611 $ 1,326 $ 43,070 $ - $ - $ 233,822 Residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Non-residential real estate Risk Rating Pass $ 1,602 $ 251 $ 1,841 $ 995 $ 379 $ 16,062 $ - $ - $ 21,130 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 1,602 $ 251 $ 1,841 $ 995 $ 379 $ 16,062 $ - $ - $ 21,130 Non-residential real estate Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Construction Risk Rating Pass $ 376,763 $ 501,012 $ 216,901 $ 55,865 $ 25,150 $ 39,337 $ - $ - $ 1,215,028 Special Mention - - - - - - - - - Substandard - - - 4,385 - - - - 4,385 Doubtful - - - - - - - - - Total $ 376,763 $ 501,012 $ 216,901 $ 60,250 $ 25,150 $ 39,337 $ - $ - $ 1,219,413 Construction Current period gross charge-offs $ - $ - $ - $ - $ - $ 159 $ - $ - $ 159 Commercial and industrial Risk Rating Pass $ 5,057 $ 8,329 $ 436 $ 435 $ 308 $ 2,195 $ 91,301 $ 3,055 $ 111,116 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 5,057 $ 8,329 $ 436 $ 435 $ 308 $ 2,195 $ 91,301 $ 3,055 $ 111,116 Commercial and industrial Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer Risk Rating Pass $ 1,229 $ - $ - $ - $ - $ $ 11 $ - $ 1,240 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total $ 1,229 $ - $ - $ - $ - $ - $ 11 $ - $ 1,240 Consumer Current period gross charge-offs $ 154 $ - $ - $ - $ - $ - $ - $ - $ 154 Total Risk Rating Pass $ 466,030 $ 581,524 $ 243,682 $ 67,991 $ 27,163 $ 100,664 $ 91,312 $ 3,055 $ 1,581,421 Special Mention - - - 915 - - - - 915 Substandard - - - 4,385 - - - - 4,385 Doubtful - - - - - - - - - Total $ 466,030 $ 581,524 $ 243,682 $ 73,291 $ 27,163 $ 100,664 $ 91,312 $ 3,055 $ 1,586,721 Total Current period gross charge-offs $ 154 $ - $ - $ - $ - $ 159 $ - $ - $ 313 Credit Risk Profile by Internally Assigned Grade as of December 31, 2022: Residential Non-residential Commercial Real Estate Real Estate Construction and Industrial Consumer Total (In Thousands) Grade: Pass $ 148,953 $ 25,324 $ 930,628 $ 110,069 $ 546 $ 1,215,520 Special Mention 946 — — — — 946 Substandard 855 — — — — 855 Doubtful — — — — — — $ 150,754 $ 25,324 $ 930,628 $ 110,069 $ 546 $ 1,217,321 |
Schedule of allowance for credit losses on off balance sheet commitments. | Allowance for Credit Loss Balance – December 31, 2022 $ - Impact of adopting ASC 326 1,586 Provision for credit loss (548) Balance – December 31, 2023 $ 1,038 |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment, Net | |
Summary of premises and equipment | December 31, December 31, 2023 2022 (In Thousands) Land $ 6,652 $ 6,652 Buildings and improvements 22,912 22,647 Leasehold improvements 1,805 1,741 Furnishings and equipment 8,051 7,880 39,420 38,920 Accumulated depreciation and amortization (13,968) (12,857) $ 25,452 $ 26,063 |
Accrued Interest Receivable, _2
Accrued Interest Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Interest Receivable, Net | |
Summary of accrued interest receivable, net | December 31, December 31, 2023 2022 (In Thousands) Loans receivable $ 12,273 $ 8,532 Securities 38 65 $ 12,311 $ 8,597 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets | |
Summary of goodwill and intangible assets | December 31, December 31, 2023 2022 (In Thousands) Goodwill $ — $ 1,310 Accumulative goodwill impairment — (1,110) Goodwill, net of charge-off $ — $ 200 |
Property Held For Investment (T
Property Held For Investment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property Held For Investment | |
Schedule of property held for investment | December 31, December 31, 2023 2022 (In Thousands) Land $ 500 $ 500 Buildings and improvements 1,442 1,442 1,942 1,942 Accumulated depreciation and amortization (535) (498) $ 1,407 $ 1,444 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits | |
Schedule of total deposits | December 31, 2023 2022 Weighted Average Weighted Average Amount Interest Rate Amount Interest Rate (Dollars in Thousands) Demand deposits: Non-interest bearing $ 300,184 — % $ 376,302 — % NOW and money market 144,807 3.07 % 88,122 0.95 % Total 444,991 1.00 % 464,424 0.18 % Savings accounts 192,594 2.71 % 273,839 2.68 % Certificates of deposit maturing in: One year or less 596,091 4.83 % 258,873 3.11 % After one to two years 81,118 3.24 % 76,180 2.78 % After two to three years 1,462 0.72 % 34,204 0.61 % After three to four years 12,371 1.31 % 1,318 0.75 % After four years 71,409 5.03 % 13,117 1.28 % Total 762,451 4.62 % 383,692 2.75 % $ 1,400,036 3.20 % $ 1,121,955 1.67 % |
Schedule of interest expense on deposits | Years Ended December 31, 2023 2022 (In Thousands) Demand deposits $ 2,459 $ 918 Savings accounts 6,777 2,688 Certificates of deposit 24,945 3,938 $ 34,181 $ 7,544 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings | |
Schedule of FHLB advances | December 31, 2023 2022 Weighted Average Weighted Average Amount Interest Rate Amount Interest Rate (Dollars in Thousands) Advances maturing in: One year or less $ 7,000 2.86 % $ 7,000 2.83 % After one to three years — — % 7,000 2.86 % After three to four years — — % — — % After five years (due 2030) 7,000 1.61 % 7,000 1.61 % $ 14,000 2.24 % $ 21,000 2.43 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of components of provision for income taxes | Years Ended December 31, 2023 2022 (In Thousands) Current tax expense $ 18,832 $ 10,894 Deferred tax expense (367) (1,308) $ 18,465 $ 9,586 |
Schedule of reconciliation of income tax rates | Years Ended December 31, 2023 2022 (Dollars In Thousands) Federal income tax at statutory rates $ 13,596 $ 7,230 State and city tax, net of federal income tax effect 4,851 2,321 Non-taxable income on bank owned life insurance (213) (127) Other 231 162 $ 18,465 $ 9,586 Effective Income Tax Rate 28.5 % 27.8 % |
Schedule of net deferred tax asset | December 31, 2023 2022 (In Thousands) Deferred tax assets: Allowance for credit losses $ 1,313 $ 1,411 State net operating loss carryforwards 24 150 Benefit plans 2,335 2,063 Accumulated other comprehensive loss – DRP 35 — Other 653 273 Total Deferred Tax Assets 4,360 3,897 Deferred tax liability: Depreciation 497 418 Goodwill — 52 Accumulated other comprehensive gain – DRP — 42 Total Deferred Tax Liabilities 497 512 Net Deferred Tax Assets Included in Other Assets $ 3,863 $ 3,385 |
Other Non-Interest Expenses (Ta
Other Non-Interest Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Non-Interest Expenses | |
Schedule of other non-interest expenses | Years Ended December 31, 2023 2022 (In Thousands) Other $ 4,043 $ 2,827 Service contracts 1,424 1,092 Consulting expense 780 950 Telephone 673 611 Directors compensation 892 676 Audit and accounting 497 566 Insurance 395 372 Director, officer, and employee expense 252 258 Legal fees 617 765 Office supplies and stationary 167 137 Recruiting expense 30 93 $ 9,770 $ 8,347 |
Benefits Plans (Tables)
Benefits Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Benefits Plans | |
Schedule of funded status of the DRP | Years Ended December 31, 2023 2022 (Dollars In Thousands) Projected benefit obligation – beginning $ 1,808 $ 2,087 Service cost 94 97 Interest cost 85 81 Actuarial gain (116) (353) Benefits Paid (104) (104) Projected benefit obligation – ending $ 1,767 $ 1,808 Funded status – accrued liability included in accounts payable and accrued expenses $ 1,767 $ 1,808 Accumulated benefit obligation $ 1,675 $ 1,712 Discount rate 5.21 % 4.83 % Rate of increase in future compensation levels 2.00 % 2.00 % |
Schedule of components of net pension periodic expense | Years Ended December 31, 2023 2022 (Dollars In Thousands) Net periodic pension expense: Service cost $ 94 $ 97 Interest cost 85 81 Actuarial (gain) loss amortized (32) 27 Total net periodic pension expense included in other non-interest expenses $ 147 $ 205 Discount rate 5.21 % 4.83 % Rate of increase in future compensation levels 2.00 % 2.00 % |
Schedule of benefit payments, which reflect expected future service | Benefit payments, which reflect expected future service as appropriate, are expected to be paid for the years ending December 31 as follows (in thousands): 2024 $ 104 2025 190 2026 204 2027 230 2028 230 2029 to 2033 957 |
Summary of ESOP shares | December 31, 2023 2022 Allocated shares 694,842 607,922 Shares committed to be released 86,920 86,920 Unearned shares 695,647 782,567 Total ESOP Shares 1,477,409 1,477,409 Less allocated shares distributed to former or retired employees (143,612) (122,280) Total ESOP Shares Held by Trustee 1,333,797 1,355,129 Fair value of unearned shares $ 12,340,778 $ 11,675,897 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock Based Compensation | |
Schedule of restricted stock activity | 2023 Weighted Average Shares Market Price Outstanding, Beginning of year 352,037 $ 13.67 Granted 4,878 16.88 Forfeited — — Vested 70,407 — Outstanding, end of year 286,508 $ 13.72 2022 Weighted Average Shares Market Price Outstanding, Beginning of year — $ — Granted 352,037 13.67 Forfeited — — Vested — — Outstanding, end of year 352,037 $ 13.67 |
Schedule of stock option activity | 2023 Weighted Average Options Exercise Price Outstanding, Beginning of year 880,097 $ 13.67 Granted — — Forfeited — — Exercised — — Outstanding, end of year 880,097 $ 13.67 Exercisable at end of year 176,019 13.67 2022 Weighted Average Options Exercise Price Outstanding, Beginning of year — $ — Granted 880,097 13.67 Forfeited — — Exercised — — Outstanding, end of year 880,097 $ 13.67 Exercisable at end of year — — Weighted average fair value of options granted in current year $ 4.36 |
Schedule of weighted average assumptions | Pricing Model Assumption Ranges 2022 Risk-free interest rate 3.87 - 3.97 % Expected volatility 28.79 - 28.94 % Expected dividend yield 1.70 - 1.94 % Expected life 7.50 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of Company's leases | The quantitative data relates to the Company’s leases are as follows (in thousands): December 31, December 31, 2023 2022 Finance Lease Amounts: ROU asset $ 351 $ 355 Lease liability $ 571 $ 533 Operating Lease Amounts: ROU assets $ 4,566 $ 2,312 Lease liabilities $ 4,625 $ 2,363 Finance Lease Cost Amortization of ROU asset $ 4 $ 4 Interest on lease liability $ 38 $ 37 Operating Lease Costs $ 566 $ 567 Cash paid for amounts included in the measurement of lease liabilities Finance lease $ — $ — Operating leases $ 511 $ 558 Weighted-average remaining lease term Finance lease 93 years 94 years Operating leases 8.58 years 6.19 years Weighted-average discount rate Finance lease 9.50 % 9.50 % Operating leases 5.18 % 1.50 % |
Maturities of operating lease liabilities | Maturities of lease liabilities at December 31, 2023 are as follows (in thousands): Operating Finance Leases Lease Years ended December 31: 2024 $ 740 $ 30 2025 738 30 2026 622 31 2027 637 36 2028 595 36 Thereafter 2,475 4,016 Total lease payments $ 5,807 $ 4,179 Interest (1,182) (3,608) Lease liability $ 4,625 $ 571 |
Maturities of financing lease liabilities | Operating Finance Leases Lease Years ended December 31: 2024 $ 740 $ 30 2025 738 30 2026 622 31 2027 637 36 2028 595 36 Thereafter 2,475 4,016 Total lease payments $ 5,807 $ 4,179 Interest (1,182) (3,608) Lease liability $ 4,625 $ 571 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures | |
Assets carried at fair value on a recurring basis | Quoted Prices in Significant Other Significant Total Carried Active Markets for Observable Unobservable at Fair Identical Assets Inputs Inputs Value on a (Level 1) (Level 2) (Level 3) Recurring Basis December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, Description 2023 2022 2023 2022 2023 2022 2023 2022 Assets: Marketable equity securities: Mutual funds $ 18,102 $ 18,041 $ — $ — $ — $ — $ 18,102 $ 18,041 Mortgage-backed securities FHLMC — — — 1 — — — 1 Total assets $ 18,102 $ 18,041 $ — $ 1 $ — $ — $ 18,102 $ 18,042 |
Assets carried at fair value on a non-recurring basis | Quoted Prices in Significant Other Significant Total Carried Active Markets for Observable Unobservable at Fair Identical Assets Inputs Inputs Value on a (Level 1) (Level 2) (Level 3) Non-Recurring Basis December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, Description 2023 2022 2023 2022 2023 2022 2023 2022 (In Thousands) Assets: Collateral dependent loans $ — $ — $ — $ — $ 4,385 $ 855 $ 4,385 $ 855 Real estate owned — — — — 1,456 1,456 1,456 1,456 Total assets $ — $ — $ — $ — $ 5,841 $ 2,311 $ 5,841 $ 2,311 |
Schedule of qualitative information about non-recurring Level 3 fair value measurements of financial instruments | At December 31, 2023 Fair Valuation Unobservable Weighted Value Technique Input Range Average (In Thousands) Assets: Collateral dependent loans $ 4,385 Income approach Capitalization rate 6.00 % 6.00 % Real estate owned 1,456 Income approach Capitalization rate 12.00 % 12.00 % At December 31, 2022 Fair Valuation Unobservable Weighted Value Technique Input Range Average (In Thousands) Assets: Impaired loans $ 855 Income approach Capitalization rate 5.60 % 5.60 % Real estate owned 1,456 Income approach Capitalization rate 12.00 % 12.00 % |
Schedule of carrying amounts and estimated fair value of our financial instruments | Fair Value at December 31, 2023 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Cash and cash equivalents $ 68,671 $ 68,671 $ 68,671 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 18,102 18,102 18,102 — — Securities held to maturity 15,860 13,126 — 13,126 — Loans receivable 1,581,804 1,552,219 — — 1,552,219 Investments in restricted stock 929 929 — 929 — Accrued interest receivable 12,311 12,311 — 12,311 — Financial Liabilities Deposits 1,400,036 1,401,083 — 1,401,083 — Borrowings 64,000 63,053 — 63,053 — Fair Value at December 31, 2022 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Cash and cash equivalents $ 95,308 $ 95,308 $ 95,308 $ — $ — Certificates of deposit 100 100 — 100 — Marketable equity securities 18,041 18,041 18,041 — — Securities available for sale 1 1 — 1 — Securities held to maturity 26,395 22,865 — 22,865 — Loans receivable 1,212,219 1,191,483 — — 1,191,483 Investments in restricted stock 1,238 1,238 — 1,238 — Accrued interest receivable 8,597 8,597 — 8,597 — Financial Liabilities Deposits 1,121,955 1,121,107 — 1,121,107 — FHLB of New York advances 21,000 19,437 — 19,437 — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | December 31, 2023 2022 (In Thousands) Non-interest income: Deposit-related fees and charges $ 55 $ 67 Loan-related fees and charges (1) 892 1,064 Electronic banking fees and charges 944 863 (Loss) gain on disposition of equipment (1) (18) 98 Income from bank owned life insurance (1) 1,013 604 Investment advisory fees 458 474 Realized and unrealized gain (loss) on equity securities (1) 294 (1,573) Miscellaneous (1) 105 86 Total non-interest income $ 3,743 $ 1,683 (1) Not within the scope of ASC 606. |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Parent Company Only Financial Information | |
Condensed Statements of Financial Condition | December 31, 2023 2022 (In Thousand) Assets Cash and due from banks $ 4,268 $ 20,334 Investment in subsidiary 254,654 220,706 Loans receivable, net of allowance for credit losses of $45 and $92, respectively (1) 14,121 13,688 ESOP loan receivable 7,336 8,177 Total Assets $ 280,379 $ 262,905 Liabilities and Stockholders’ Equity Accounts payable and accrued expenses $ 1,054 $ 916 Total Liabilities 1,054 916 Total Stockholders’ Equity 279,325 261,989 Total Liabilities and Stockholders’ Equity $ 280,379 $ 262,905 (1) Represents participation loans purchased from the Bank |
Condensed Statements of Operations and Comprehensive Income | Years Ended December 31, 2023 2022 (In Thousand) Interest income – loans $ 1,371 $ 240 Interest income – ESOP loan 333 377 Interest income – interest-earning deposits 179 343 Dividend income from subsidiary 14,000 — Operating expenses (2,298) (956) Income before Income Tax Expense and Equity in Undistributed Earnings of Subsidiary 13,585 4 Income tax (benefit) expense (120) 1 Income before Equity in Undistributed Earnings of Subsidiary 13,705 3 Equity in undistributed earnings of subsidiary 32,571 24,840 Net Income $ 46,276 $ 24,843 Comprehensive Income $ 46,336 $ 25,138 |
Statements of Cash Flow | Years Ended December 31, 2023 2022 (In Thousand) Cash Flows from Operating Activities Net income $ 46,276 $ 24,843 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (32,571) (24,840) Other, net 2,183 544 Net Cash Provided by Operating Activities 15,888 547 Cash Flows from Investing Activities Repayment of ESOP loan 841 796 Net increase in loans (433) (9,211) Net Cash Provided (Used in) by Investing Activities 408 (8,415) Cash Flows from Financing Activities Cash dividends paid (3,652) (6,868) Stock repurchase (28,710) (9,318) Net Cash Used in Financing Activities (32,362) (16,186) Net Decrease in Cash and Cash Equivalents (16,066) (24,054) Cash and Cash Equivalents – Beginning 20,334 44,388 Cash and Cash Equivalents – Ending $ 4,268 $ 20,334 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) Office property $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Summary of Significant Accounting Policies | ||
Number of branch offices | Office | 11 | |
Number of loan production offices | Office | 3 | |
Goodwill | $ 0 | $ 200,000 |
Impairment of goodwill | 451,000 | |
Loss on disposition of business | (138,000) | |
Real estate owned properties, wrote down during the year | 0 | 540,000 |
Income tax related interest and penalties | 0 | 0 |
Accumulated other comprehensive income | 317,000 | 156,000 |
Accumulated other comprehensive loss of prior service cost | 352,000 | 197,000 |
Accumulated other comprehensive loss of actuarial losses of Directors Retirement Plan | $ 35,000 | $ 41,000 |
Common stock, shares authorized (in shares) | shares | 75,000,000 | 75,000,000 |
Common stock, par value (in $ per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | shares | 14,144,856 | 16,049,454 |
Common stock, shares outstanding (in shares) | shares | 14,144,856 | 16,049,454 |
Buildings | Minimum | ||
Summary of Significant Accounting Policies | ||
Useful life of property | 30 years | |
Property held for investment useful life | 30 years | |
Buildings | Maximum | ||
Summary of Significant Accounting Policies | ||
Useful life of property | 50 years | |
Property held for investment useful life | 50 years | |
Building improvements | Minimum | ||
Summary of Significant Accounting Policies | ||
Useful life of property | 10 years | |
Property held for investment useful life | 10 years | |
Building improvements | Maximum | ||
Summary of Significant Accounting Policies | ||
Useful life of property | 50 years | |
Property held for investment useful life | 50 years | |
Leasehold improvements | Minimum | ||
Summary of Significant Accounting Policies | ||
Useful life of property | 1 year | |
Leasehold improvements | Maximum | ||
Summary of Significant Accounting Policies | ||
Useful life of property | 15 years | |
Furnishings and equipment | Minimum | ||
Summary of Significant Accounting Policies | ||
Useful life of property | 3 years | |
Furnishings and equipment | Maximum | ||
Summary of Significant Accounting Policies | ||
Useful life of property | 5 years | |
Bronx | ||
Summary of Significant Accounting Policies | ||
Construction loans | $ 626,000,000 | $ 440,600,000 |
Town of Monroe | ||
Summary of Significant Accounting Policies | ||
Construction loans | 198,500,000 | 122,400,000 |
Hamlet of Monsey | ||
Summary of Significant Accounting Policies | ||
Construction loans | 133,700,000 | 103,800,000 |
Village of Spring Valley | ||
Summary of Significant Accounting Policies | ||
Construction loans | 105,900,000 | 104,300,000 |
Brooklyn | ||
Summary of Significant Accounting Policies | ||
Construction loans | $ 18,800,000 | 31,800,000 |
New England Commercial Properties LLC | ||
Summary of Significant Accounting Policies | ||
Number of foreclosed properties | property | 1 | |
Federal Reserve Bank of New York | ||
Summary of Significant Accounting Policies | ||
Deposits in excess of FDIC insurance limit | $ 43,200,000 | 59,000,000 |
Federal Home Loan Bank of New York | ||
Summary of Significant Accounting Policies | ||
Deposits in excess of FDIC insurance limit | 13,700,000 | 26,400,000 |
Restricted stock held | 859,000 | 1,200,000 |
Atlantic Community Bankers Bank | ||
Summary of Significant Accounting Policies | ||
Deposits in excess of FDIC insurance limit | 430,000 | 1,000,000 |
Restricted stock held | $ 70,000 | $ 70,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Computations of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net Income (Loss) | $ 46,276 | $ 24,843 |
Weighted average shares issued | 14,983,000 | 16,309,000 |
Less: Weighted average unearned ESOP shares | (736,000) | (822,000) |
Less: Weighted average unvested restricted shares | (317,000) | (54,000) |
Basic weighted average shares outstanding | 13,930,000 | 15,433,000 |
Add: Dilutive effect of restricted stock | 6,000 | 293,000 |
Diluted weighted average shares outstanding | 13,936,000 | 15,726,000 |
Net income per share | ||
Basic | $ 3.32 | $ 1.61 |
Diluted | $ 3.32 | $ 1.58 |
Stock option | ||
Net income per share | ||
Antidilutive securities excluded from computation of diluted earnings per share | 880,097 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Adopting ASC 326 (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Summary of Significant Accounting Policies | ||||
Retained earnings | $ 175,505,000 | $ 134,000 | $ 132,670,000 | |
Retained earnings, net of tax | 99,000 | |||
Securities held-to-maturity, allowance for credit losses | 136,000 | 1,600,000 | 136,000 | |
ACL on loan receivables | 132,000 | 5,474,000 | $ 5,242,000 | |
ACL for off-balance sheet exposure | 1,038,000 | 1,600,000 | ||
Residential real estate | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 528,000 | 571,000 | ||
Non-residential real estate | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 131,000 | 381,000 | ||
Construction | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 3,835,000 | 3,143,000 | ||
Commercial and industrial | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 955,000 | 973,000 | ||
Consumer | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 18,000 | 10,000 | ||
Unallocated | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 7,000 | $ 164,000 | ||
Topic 326 | ||||
Summary of Significant Accounting Policies | ||||
ACL on debt securities held-to-maturity, ACL on loan receivables and ACL for off-balance sheet exposure | 5,474,000 | |||
Topic 326 | Residential real estate | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 528,000 | |||
Topic 326 | Non-residential real estate | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 131,000 | |||
Topic 326 | Construction | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 3,835,000 | |||
Topic 326 | Commercial and industrial | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 955,000 | |||
Topic 326 | Consumer | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 18,000 | |||
Topic 326 | Unallocated | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | $ 7,000 | |||
Topic 326 | Adoption Impact | ||||
Summary of Significant Accounting Policies | ||||
ACL for off-balance sheet exposure | $ 1,586,000 | 1,586,000 | ||
ACL on debt securities held-to-maturity, ACL on loan receivables and ACL for off-balance sheet exposure | 134,000 | |||
Topic 326 | Adoption Impact | Residential real estate | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 895,000 | |||
Topic 326 | Adoption Impact | Non-residential real estate | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 7,000 | |||
Topic 326 | Adoption Impact | Construction | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | (2,086,000) | |||
Topic 326 | Adoption Impact | Commercial and industrial | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | (437,000) | |||
Topic 326 | Adoption Impact | Consumer | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 44,000 | |||
Topic 326 | Adoption Impact | Unallocated | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | (7,000) | |||
Topic 326 | Adoption Impact | Municipal Bonds | ||||
Summary of Significant Accounting Policies | ||||
ACL on debt securities held-to-maturity, ACL on loan receivables and ACL for off-balance sheet exposure | 132,000 | |||
Topic 326 | As Reported | ||||
Summary of Significant Accounting Policies | ||||
ACL for off-balance sheet exposure | 1,586,000 | |||
ACL on debt securities held-to-maturity, ACL on loan receivables and ACL for off-balance sheet exposure | 5,608,000 | |||
Topic 326 | As Reported | Residential real estate | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 1,423,000 | |||
Topic 326 | As Reported | Non-residential real estate | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 138,000 | |||
Topic 326 | As Reported | Construction | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 1,749,000 | |||
Topic 326 | As Reported | Commercial and industrial | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 518,000 | |||
Topic 326 | As Reported | Consumer | ||||
Summary of Significant Accounting Policies | ||||
ACL on loan receivables | 62,000 | |||
Topic 326 | As Reported | Municipal Bonds | ||||
Summary of Significant Accounting Policies | ||||
ACL on debt securities held-to-maturity, ACL on loan receivables and ACL for off-balance sheet exposure | $ 132,000 |
Mutual Holding Company Reorga_3
Mutual Holding Company Reorganization and Regulatory Matters - Narrative (Details) - shares | Jul. 05, 2006 | Dec. 31, 2023 | Dec. 31, 2022 |
Mutual Holding Company Reorganization and Regulatory Matters | |||
Stock issued | 5,951,250 | ||
Percentage of capital conservation buffer | 2.50% | 2.50% | |
Northeast Community Bancorp, MHC | |||
Mutual Holding Company Reorganization and Regulatory Matters | |||
Stock issued | 7,273,750 |
Mutual Holding Company Reorga_4
Mutual Holding Company Reorganization and Regulatory Matters - Schedule of capital levels of the bank (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Actual Capital Amount | ||
Total capital (to risk-weighted assets), Actual amount | $ 255,252 | $ 222,728 |
Total capital (to risk-weighted assets), Minimum Capital Adequacy amount | 152,097 | 130,429 |
Total capital (to risk-weighted assets), For Classification as Well-Capitalized amount | $ 190,121 | $ 163,036 |
Actual Capital Ratio | ||
Total capital (to risk-weighted assets), Actual ratio | 0.1343 | 0.1366 |
Total capital (to risk-weighted assets), Minimum Capital Adequacy ratio | 0.0800 | 0.0800 |
Total capital (to risk-weighted assets), For Classification as Well-Capitalized ratio | 0.1000 | 0.1000 |
Tier 1 capital Amount | ||
Tier 1 capital (to risk-weighted assets), Actual amount | $ 249,013 | $ 217,283 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy amount | 114,072 | 97,822 |
Tier 1 capital (to risk-weighted assets), For Classification as Well-Capitalized amount | $ 152,097 | $ 130,429 |
Tier 1 capital Ratio | ||
Tier 1 capital (to risk-weighted assets), Actual ratio | 0.1310 | 0.1333 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy ratio | 0.0600 | 0.0600 |
Tier 1 capital (to risk-weighted assets), For Classification as Well-Capitalized ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital Amount | ||
Common equity tier 1 capital (to risk-weighted assets), Actual amount | $ 249,013 | $ 217,283 |
Common equity tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy amount | 85,554 | 73,366 |
Common equity tier 1 capital (to risk-weighted assets), For Classification as Well-Capitalized amount | $ 123,579 | $ 105,973 |
Common Equity Tier 1 Capital Ratio | ||
Common equity tier 1 capital (to risk-weighted assets), Actual ratio | 0.1310 | 0.1333 |
Common equity tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy ratio | 0.0450 | 0.0450 |
Common equity tier 1 capital (to risk-weighted assets), For Classification as Well-Capitalized ratio | 0.0650 | 0.0650 |
Core (Tier 1) Capital Amount | ||
Core (Tier 1) capital (to adjusted total assets), Actual amount | $ 249,013 | $ 217,283 |
Core (Tier 1) capital (to adjusted total assets), Minimum Capital Adequacy amount | 69,007 | 52,687 |
Core (Tier 1) capital (to adjusted total assets), For Classification as Well-Capitalized amount | $ 86,259 | $ 65,858 |
Core (Tier 1) Capital Ratio | ||
Core (Tier 1) capital (to adjusted total assets), Actual ratio | 0.1443 | 0.1650 |
Core (Tier 1) capital (to adjusted total assets), Minimum Capital Adequacy ratio | 0.0400 | 0.0400 |
Core (Tier 1) capital (to adjusted total assets), For Classification as Well-Capitalized ratio | 0.0500 | 0.0500 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Instruments with Off-Balance Sheet Risk | ||
Financial Instruments with Off-Balance Sheet Risk | $ 719,640 | $ 948,661 |
Commitments to extend credit | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial Instruments with Off-Balance Sheet Risk | 125,885 | 164,903 |
Construction loans in process | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial Instruments with Off-Balance Sheet Risk | 481,277 | 637,427 |
Stand-by letters of credit | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial Instruments with Off-Balance Sheet Risk | 9,508 | 12,451 |
Commercial and industrial lines | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial Instruments with Off-Balance Sheet Risk | 102,903 | 133,794 |
Consumer lines | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial Instruments with Off-Balance Sheet Risk | $ 67 | $ 86 |
Equity Securities - Schedule of
Equity Securities - Schedule of equity securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Equity Securities | ||
Equity Securities, at Fair Value | $ 18,102 | $ 18,041 |
Equity Securities - Schedule _2
Equity Securities - Schedule of unrealized losses recognized in net income on equity securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Equity Securities | ||
Net unrealized gain (loss) recognized on equity securities during the period | $ 61 | $ (1,902) |
Capital gain realized on equity securities during the period | 233 | 329 |
Realized and unrealized net gain (loss) recognized on equity securities held at the reporting date | $ 294 | $ (1,573) |
Securities Available-for-Sale -
Securities Available-for-Sale - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Securities Available-for-Sale | ||
Securities available-for-sale, at fair value | $ 0 | $ 1 |
Proceeds from sales of securities available-for-sale | 0 | 0 |
Unrealized loss | $ 0 | $ 0 |
Securities Available-for-Sale_2
Securities Available-for-Sale - Schedule of portfolio of securities available-for-sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Securities Available-for-Sale | ||
Fair Value | $ 0 | $ 1 |
Mortgage-backed securities - residential | ||
Securities Available-for-Sale | ||
Amortized Cost | 1 | |
Fair Value | 1 | |
Federal Home Loan Mortgage Corporation | ||
Securities Available-for-Sale | ||
Amortized Cost | 1 | |
Fair Value | $ 1 |
Securities Held-to-Maturity - P
Securities Held-to-Maturity - Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Securities Held-to-Maturity | |||
Amortized Cost | $ 15,996 | $ 26,395 | |
Gross Unrealized Losses | 2,870 | 3,530 | |
Fair Value | 13,126 | 22,865 | |
Securities held-to-maturity, allowance for credit losses | 136 | $ 1,600 | 136 |
Government National Mortgage Association | |||
Securities Held-to-Maturity | |||
Amortized Cost | 452 | 523 | |
Gross Unrealized Losses | 7 | 18 | |
Fair Value | 445 | 505 | |
Federal Home Loan Mortgage Corporation | |||
Securities Held-to-Maturity | |||
Amortized Cost | 868 | 961 | |
Gross Unrealized Losses | 114 | 129 | |
Fair Value | 754 | 832 | |
Federal National Mortgage Association | |||
Securities Held-to-Maturity | |||
Amortized Cost | 1,985 | 2,308 | |
Gross Unrealized Losses | 198 | 250 | |
Fair Value | 1,787 | 2,058 | |
Collateralized mortgage obligations - GSE | |||
Securities Held-to-Maturity | |||
Amortized Cost | 2,889 | 3,043 | |
Gross Unrealized Losses | 580 | 506 | |
Fair Value | 2,309 | 2,537 | |
Mortgage-backed securities - residential | |||
Securities Held-to-Maturity | |||
Amortized Cost | 6,194 | 6,835 | |
Gross Unrealized Losses | 899 | 903 | |
Fair Value | 5,295 | 5,932 | |
Municipal Bonds | |||
Securities Held-to-Maturity | |||
Amortized Cost | 9,802 | 9,546 | |
Gross Unrealized Losses | 1,971 | 2,524 | |
Fair Value | 7,831 | 7,022 | |
Securities held-to-maturity, allowance for credit losses | $ 136 | ||
U.S Treasury securities | |||
Securities Held-to-Maturity | |||
Amortized Cost | 10,014 | ||
Gross Unrealized Losses | 103 | ||
Fair Value | $ 9,911 |
Securities Held-to-Maturity - C
Securities Held-to-Maturity - Contractual final maturities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Amortized Cost | |
Due within one year | $ 712 |
Due after one but within five years | 2,024 |
Due after five but within ten years | 2,872 |
Due after ten years | 10,388 |
Amortized Cost | 15,996 |
Fair Value | |
Due within one year | 639 |
Due after one but within five years | 1,733 |
Due after five but within ten years | 2,666 |
Due after ten years | 8,088 |
Fair Value | $ 13,126 |
Securities Held-to-Maturity - A
Securities Held-to-Maturity - Activity in allowance for credit losses for debt securities held-to-maturity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Schedule of Held-to-maturity Securities [Line Items] | |
Beginning Balance | $ 136 |
Ending Balance | 136 |
Municipal Bonds | |
Schedule of Held-to-maturity Securities [Line Items] | |
Provision for credit loss | 4 |
Ending Balance | 136 |
Municipal Bonds | Impact of adopting ASC 326 | |
Schedule of Held-to-maturity Securities [Line Items] | |
Beginning Balance | $ 132 |
Securities Held-to-Maturity -_2
Securities Held-to-Maturity - Age of unrealized losses and the fair value (Details) $ in Thousands | Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Fair Value | ||
Less than 12 Months | $ 13,115 | |
12 Months or More | 9,742 | |
Total | 22,857 | |
Gross Unrealized Losses | ||
Less than 12 Months | 537 | |
12 Months or More | 2,993 | |
Total | 3,530 | |
Government National Mortgage Association | ||
Fair Value | ||
Less than 12 Months | 505 | |
12 Months or More | $ 445 | |
Total | 445 | 505 |
Gross Unrealized Losses | ||
Less than 12 Months | 18 | |
12 Months or More | 7 | |
Total | 7 | 18 |
Federal Home Loan Mortgage Corporation | ||
Fair Value | ||
12 Months or More | 754 | 824 |
Total | 754 | 824 |
Gross Unrealized Losses | ||
12 Months or More | 114 | 129 |
Total | 114 | 129 |
Federal National Mortgage Association | ||
Fair Value | ||
Less than 12 Months | 478 | |
12 Months or More | 1,787 | 1,580 |
Total | 1,787 | 2,058 |
Gross Unrealized Losses | ||
Less than 12 Months | 33 | |
12 Months or More | 198 | 217 |
Total | 198 | 250 |
Collateralized mortgage obligations - GSE | ||
Fair Value | ||
Less than 12 Months | 1,777 | |
12 Months or More | 2,309 | 759 |
Total | 2,309 | 2,536 |
Gross Unrealized Losses | ||
Less than 12 Months | 344 | |
12 Months or More | 580 | 162 |
Total | 580 | 506 |
Total mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 2,760 | |
12 Months or More | 5,295 | 3,163 |
Total | 5,295 | 5,923 |
Gross Unrealized Losses | ||
Less than 12 Months | 395 | |
12 Months or More | 899 | 508 |
Total | $ 899 | $ 903 |
Mortgage-backed securities | ||
Gross Unrealized Losses | ||
Number of securities with unrealized loss | security | 27 | 35 |
Municipal Bonds | ||
Fair Value | ||
Less than 12 Months | $ 444 | |
12 Months or More | 6,579 | |
Total | 7,023 | |
Gross Unrealized Losses | ||
Less than 12 Months | 39 | |
12 Months or More | 2,485 | |
Total | $ 2,524 | |
Number of securities with unrealized loss | security | 8 | 6 |
U.S Treasury securities | ||
Fair Value | ||
Less than 12 Months | $ 9,911 | |
Total | 9,911 | |
Gross Unrealized Losses | ||
Less than 12 Months | 103 | |
Total | $ 103 | |
US Treasury Notes | ||
Gross Unrealized Losses | ||
Number of securities with unrealized loss | security | 2 |
Loans Receivable and the Allo_3
Loans Receivable and the Allowance for Credit Losses - Summary of composition of loans (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Loans Receivable and the Allowance for Loan Losses | ||||
Loans receivable | $ 1,586,721,000 | $ 1,217,321,000 | ||
Deferred loan costs, net | 176,000 | |||
Deferred loan costs, net | 372,000 | |||
Allowance for credit losses | (5,093,000) | (5,474,000) | ||
Allowance for credit losses | $ (132,000) | (5,474,000) | $ (5,242,000) | |
Net loans | 1,581,804,000 | |||
Net loans | 1,212,219,000 | |||
Residential Real Estate | ||||
Loans Receivable and the Allowance for Loan Losses | ||||
Loans receivable | 233,822,000 | 150,754,000 | ||
Allowance for credit losses | (2,433,000) | (528,000) | ||
Allowance for credit losses | (528,000) | (571,000) | ||
Residential Real Estate | One-to-four family | ||||
Loans Receivable and the Allowance for Loan Losses | ||||
Loans receivable | 5,252,000 | 5,467,000 | ||
Residential Real Estate | Multi-family | ||||
Loans Receivable and the Allowance for Loan Losses | ||||
Loans receivable | 198,927,000 | 123,385,000 | ||
Residential Real Estate | Mixed-use | ||||
Loans Receivable and the Allowance for Loan Losses | ||||
Loans receivable | 29,643,000 | 21,902,000 | ||
Non-residential Real Estate | ||||
Loans Receivable and the Allowance for Loan Losses | ||||
Loans receivable | 21,130,000 | 25,324,000 | ||
Allowance for credit losses | (126,000) | (131,000) | ||
Allowance for credit losses | (131,000) | (381,000) | ||
Construction | ||||
Loans Receivable and the Allowance for Loan Losses | ||||
Loans receivable | 1,219,413,000 | 930,628,000 | ||
Allowance for credit losses | (1,914,000) | (3,835,000) | ||
Allowance for credit losses | (3,835,000) | (3,143,000) | ||
Commercial and Industrial | ||||
Loans Receivable and the Allowance for Loan Losses | ||||
Loans receivable | 111,116,000 | 110,069,000 | ||
Allowance for credit losses | (472,000) | (955,000) | ||
Allowance for credit losses | (955,000) | (973,000) | ||
Consumer | ||||
Loans Receivable and the Allowance for Loan Losses | ||||
Loans receivable | 1,240,000 | 546,000 | ||
Allowance for credit losses | $ (148,000) | (18,000) | ||
Allowance for credit losses | $ (18,000) | $ (10,000) |
Loans Receivable and the Allo_4
Loans Receivable and the Allowance for Credit Losses - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Loans Receivable and the Allowance for Loan Losses | ||
Loans serviced for the benefit of others | $ 40,729,000,000 | $ 22,350,000,000 |
Sale of loan participations | $ 19,200,000 | $ 11,500,000 |
Number of loans sold | loan | 3 | 1 |
Sale of loan par totaling | $ 10,400,000 | $ 1,578,000,000 |
Sale of loan interest reserve | 63,000,000 | |
Gain (loss) on sale of loans | 159,000 | 391,000,000 |
Individually evaluated loans | $ 4,400,000 | 855,000 |
Financing receivable individually evaluated for impairment, nonaccrual number | loan | 2 | |
Interest income recognized from individually evaluated loans | $ 0 | $ 0 |
Non-accrual loans | loan | 0 | |
Number of loans modified that were deemed troubled debt restructuring | loan | 0 | 0 |
Construction | ||
Loans Receivable and the Allowance for Loan Losses | ||
Number of loans individually evaluated for impairment | loan | 2 |
Loans Receivable and the Allo_5
Loans Receivable and the Allowance for Credit Losses - Schedule of analysis of the activity in the allowance for loan losses (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Allowance for credit losses: | ||||
Ending balance | $ 5,093,000 | $ 5,474,000 | ||
Ending balance: collectively evaluated for impairment | 5,093,000 | |||
Ending balance | 1,586,721,000 | 1,217,321,000 | ||
Ending balance: individually evaluated for impairment | 4,385,000 | |||
Ending balance: collectively evaluated for impairment | 1,582,336,000 | |||
Ending balance | $ 132,000 | 5,474,000 | $ 5,242,000 | |
Ending balance: collectively evaluated for impairment | 5,474,000 | |||
Ending balance | 1,217,321,000 | |||
Ending balance: individually evaluated for impairment | 4,400,000 | 855,000 | ||
Ending balance: collectively evaluated for impairment | 1,216,466,000 | |||
Residential Real Estate | ||||
Allowance for credit losses: | ||||
Ending balance | 2,433,000 | 528,000 | ||
Ending balance: collectively evaluated for impairment | 2,433,000 | |||
Ending balance | 233,822,000 | 150,754,000 | ||
Ending balance: collectively evaluated for impairment | 233,822,000 | |||
Ending balance | 528,000 | 571,000 | ||
Ending balance: collectively evaluated for impairment | 528,000 | |||
Ending balance | 150,754,000 | |||
Ending balance: individually evaluated for impairment | 855,000 | |||
Ending balance: collectively evaluated for impairment | 149,899,000 | |||
Non-residential Real Estate | ||||
Allowance for credit losses: | ||||
Ending balance | 126,000 | 131,000 | ||
Ending balance: collectively evaluated for impairment | 126,000 | |||
Ending balance | 21,130,000 | 25,324,000 | ||
Ending balance: collectively evaluated for impairment | 21,130,000 | |||
Ending balance | 131,000 | 381,000 | ||
Ending balance: collectively evaluated for impairment | 131,000 | |||
Ending balance | 25,324,000 | |||
Ending balance: collectively evaluated for impairment | 25,324,000 | |||
Construction | ||||
Allowance for credit losses: | ||||
Ending balance | 1,914,000 | 3,835,000 | ||
Ending balance: collectively evaluated for impairment | 1,914,000 | |||
Ending balance | 1,219,413,000 | 930,628,000 | ||
Ending balance: individually evaluated for impairment | 4,385,000 | |||
Ending balance: collectively evaluated for impairment | 1,215,028,000 | |||
Ending balance | 3,835,000 | 3,143,000 | ||
Ending balance: collectively evaluated for impairment | 3,835,000 | |||
Ending balance | 930,628,000 | |||
Ending balance: collectively evaluated for impairment | 930,628,000 | |||
Commercial and Industrial | ||||
Allowance for credit losses: | ||||
Ending balance | 472,000 | 955,000 | ||
Ending balance: collectively evaluated for impairment | 472,000 | |||
Ending balance | 111,116,000 | 110,069,000 | ||
Ending balance: collectively evaluated for impairment | 111,116,000 | |||
Ending balance | 955,000 | 973,000 | ||
Ending balance: collectively evaluated for impairment | 955,000 | |||
Ending balance | 110,069,000 | |||
Ending balance: collectively evaluated for impairment | 118,378,000 | |||
Consumer | ||||
Allowance for credit losses: | ||||
Ending balance | 148,000 | 18,000 | ||
Ending balance: collectively evaluated for impairment | 148,000 | |||
Ending balance | 1,240,000 | 546,000 | ||
Ending balance: collectively evaluated for impairment | $ 1,240,000 | |||
Ending balance | 18,000 | 10,000 | ||
Ending balance: collectively evaluated for impairment | 18,000 | |||
Ending balance | 546,000 | |||
Ending balance: collectively evaluated for impairment | 546,000 | |||
Unallocated | ||||
Allowance for credit losses: | ||||
Ending balance | 7,000 | |||
Ending balance | 7,000 | $ 164,000 | ||
Ending balance: collectively evaluated for impairment | $ 7,000 |
Loans Receivable and the Allo_6
Loans Receivable and the Allowance for Credit Losses - Unfunded loan commitment allowances activity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Beginning balance | $ 5,474 |
Charge-offs | (313) |
Provision (Benefit) | 1,516 |
Ending balance | 5,093 |
Residential Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Beginning balance | 528 |
Provision (Benefit) | 1,010 |
Ending balance | 2,433 |
Non-residential Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Beginning balance | 131 |
Provision (Benefit) | (12) |
Ending balance | 126 |
Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Beginning balance | 3,835 |
Charge-offs | (159) |
Provision (Benefit) | 324 |
Ending balance | 1,914 |
Commercial and Industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Beginning balance | 955 |
Provision (Benefit) | (46) |
Ending balance | 472 |
Consumer | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Beginning balance | 18 |
Charge-offs | (154) |
Provision (Benefit) | 240 |
Ending balance | 148 |
Unallocated | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Beginning balance | 7 |
Cumulative effect of adoption of ASU 2016-13 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Ending balance | (1,584) |
Cumulative effect of adoption of ASU 2016-13 | Residential Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Ending balance | 895 |
Cumulative effect of adoption of ASU 2016-13 | Non-residential Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Ending balance | 7 |
Cumulative effect of adoption of ASU 2016-13 | Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Ending balance | (2,086) |
Cumulative effect of adoption of ASU 2016-13 | Commercial and Industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Ending balance | (437) |
Cumulative effect of adoption of ASU 2016-13 | Consumer | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Ending balance | 44 |
Cumulative effect of adoption of ASU 2016-13 | Unallocated | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Ending balance | $ (7) |
Loans Receivable and the Allo_7
Loans Receivable and the Allowance for Credit Losses - Schedule of analysis of the activity in the allowance for loan loss by loan class (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance for loan losses: | ||
Beginning balance | $ 5,474 | $ 5,242 |
Charge-offs | (449) | |
Recoveries | 242 | |
Provision for credit losses | 972 | 439 |
Ending balance | 5,474 | |
Residential Real Estate | ||
Allowance for loan losses: | ||
Beginning balance | 528 | 571 |
Charge-offs | (86) | |
Recoveries | 189 | |
Provision for credit losses | (146) | |
Ending balance | 528 | |
Non-residential Real Estate | ||
Allowance for loan losses: | ||
Beginning balance | 131 | 381 |
Recoveries | 53 | |
Provision for credit losses | (303) | |
Ending balance | 131 | |
Construction | ||
Allowance for loan losses: | ||
Beginning balance | 3,835 | 3,143 |
Charge-offs | (328) | |
Provision for credit losses | 1,020 | |
Ending balance | 3,835 | |
Commercial and Industrial | ||
Allowance for loan losses: | ||
Beginning balance | 955 | 973 |
Provision for credit losses | (18) | |
Ending balance | 955 | |
Consumer | ||
Allowance for loan losses: | ||
Beginning balance | 18 | 10 |
Charge-offs | (35) | |
Provision for credit losses | 43 | |
Ending balance | 18 | |
Unallocated | ||
Allowance for loan losses: | ||
Beginning balance | $ 7 | 164 |
Provision for credit losses | (157) | |
Ending balance | $ 7 |
Loans Receivable and the Allo_8
Loans Receivable and the Allowance for Credit Losses - Summary of recorded investment, unpaid principal balance and allocated allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Recorded Investment | ||
Recorded Investment, With no related allowance | $ 4,385 | $ 855 |
Recorded Investment | 4,385 | 855 |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance | 4,353 | 769 |
Unpaid Principal Balance | 4,353 | 769 |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance | 5,930 | 1,248 |
Average Recorded Investment | 5,930 | 1,248 |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance | 57 | |
Interest Income Recognized | 57 | |
Residential Real Estate | ||
Recorded Investment | ||
Recorded Investment, With no related allowance | 855 | |
Recorded Investment | 855 | |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance | 769 | |
Unpaid Principal Balance | 769 | |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance | 863 | |
Average Recorded Investment | 863 | |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance | 43 | |
Interest Income Recognized | 43 | |
Non-residential Real Estate | ||
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance | 385 | |
Average Recorded Investment | 385 | |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance | 14 | |
Interest Income Recognized | $ 14 | |
Construction | ||
Recorded Investment | ||
Recorded Investment, With no related allowance | 4,385 | |
Recorded Investment | 4,385 | |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance | 4,353 | |
Unpaid Principal Balance | 4,353 | |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance | 5,930 | |
Average Recorded Investment | $ 5,930 |
Loans Receivable and the Allo_9
Loans Receivable and the Allowance for Credit Losses - Schedule of age analysis of past due loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | $ 1,217,321 | |
Loans receivable | $ 1,586,721 | 1,217,321 |
30-59 Days Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 2,320 | |
60-89 Days Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 946 | |
90 Days Or Greater | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 4,385 | |
Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 946 | |
Loans receivable | 6,705 | |
Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 1,216,375 | |
Loans receivable | 1,580,016 | |
Residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 150,754 | |
Loans receivable | 233,822 | 150,754 |
Residential Real Estate | One-to-four family | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 5,467 | |
Loans receivable | 5,252 | 5,467 |
Residential Real Estate | One-to-four family | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 5,467 | |
Loans receivable | 5,252 | |
Residential Real Estate | Multi-family | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 123,385 | |
Loans receivable | 198,927 | 123,385 |
Residential Real Estate | Multi-family | 60-89 Days Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 946 | |
Residential Real Estate | Multi-family | Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 946 | |
Residential Real Estate | Multi-family | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 122,439 | |
Loans receivable | 198,927 | |
Residential Real Estate | Mixed-use | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 21,902 | |
Loans receivable | 29,643 | 21,902 |
Residential Real Estate | Mixed-use | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 21,902 | |
Loans receivable | 29,643 | |
Non-residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 25,324 | |
Loans receivable | 21,130 | 25,324 |
Non-residential Real Estate | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 25,324 | |
Loans receivable | 21,130 | |
Construction | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 930,628 | |
Loans receivable | 1,219,413 | 930,628 |
Construction | 30-59 Days Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 2,319 | |
Construction | 90 Days Or Greater | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 4,385 | |
Construction | Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 6,704 | |
Construction | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 930,628 | |
Loans receivable | 1,212,709 | |
Commercial and Industrial | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 110,069 | |
Loans receivable | 111,116 | 110,069 |
Commercial and Industrial | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 110,069 | |
Loans receivable | 111,116 | |
Consumer | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 546 | |
Loans receivable | 1,240 | 546 |
Consumer | 30-59 Days Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 1 | |
Consumer | Past Due | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | 1 | |
Consumer | Current | ||
Loans Receivable and the Allowance for Loan Losses | ||
Loans receivable | $ 546 | |
Loans receivable | $ 1,239 |
Loans Receivable and the All_10
Loans Receivable and the Allowance for Credit Losses - Summary of risk category of loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans Receivable and the Allowance for Loan Losses | ||
2023 | $ 466,030 | |
2022 | 581,524 | |
2021 | 243,682 | |
2020 | 73,291 | |
2019 | 27,163 | |
Prior | 100,664 | |
Revolving Loans Amortized Cost Basis | 91,312 | |
Revolving Loans Converted to Term | 3,055 | |
Total | 1,586,721 | $ 1,217,321 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff | ||
2023 | 154 | |
Prior | 159 | |
Total | 313 | |
Residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 81,379 | |
2022 | 71,932 | |
2021 | 24,504 | |
2020 | 11,611 | |
2019 | 1,326 | |
Prior | 43,070 | |
Total | 233,822 | 150,754 |
Non-residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 1,602 | |
2022 | 251 | |
2021 | 1,841 | |
2020 | 995 | |
2019 | 379 | |
Prior | 16,062 | |
Total | 21,130 | 25,324 |
Construction | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 376,763 | |
2022 | 501,012 | |
2021 | 216,901 | |
2020 | 60,250 | |
2019 | 25,150 | |
Prior | 39,337 | |
Total | 1,219,413 | 930,628 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff | ||
Prior | 159 | |
Total | 159 | |
Commercial and Industrial | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 5,057 | |
2022 | 8,329 | |
2021 | 436 | |
2020 | 435 | |
2019 | 308 | |
Prior | 2,195 | |
Revolving Loans Amortized Cost Basis | 91,301 | |
Revolving Loans Converted to Term | 3,055 | |
Total | 111,116 | 110,069 |
Consumer | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 1,229 | |
Revolving Loans Amortized Cost Basis | 11 | |
Total | 1,240 | 546 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff | ||
2023 | 154 | |
Total | 154 | |
Pass | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 466,030 | |
2022 | 581,524 | |
2021 | 243,682 | |
2020 | 67,991 | |
2019 | 27,163 | |
Prior | 100,664 | |
Revolving Loans Amortized Cost Basis | 91,312 | |
Revolving Loans Converted to Term | 3,055 | |
Total | 1,581,421 | 1,215,520 |
Pass | Residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 81,379 | |
2022 | 71,932 | |
2021 | 24,504 | |
2020 | 10,696 | |
2019 | 1,326 | |
Prior | 43,070 | |
Total | 232,907 | 148,953 |
Pass | Non-residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 1,602 | |
2022 | 251 | |
2021 | 1,841 | |
2020 | 995 | |
2019 | 379 | |
Prior | 16,062 | |
Total | 21,130 | 25,324 |
Pass | Construction | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 376,763 | |
2022 | 501,012 | |
2021 | 216,901 | |
2020 | 55,865 | |
2019 | 25,150 | |
Prior | 39,337 | |
Total | 1,215,028 | 930,628 |
Pass | Commercial and Industrial | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 5,057 | |
2022 | 8,329 | |
2021 | 436 | |
2020 | 435 | |
2019 | 308 | |
Prior | 2,195 | |
Revolving Loans Amortized Cost Basis | 91,301 | |
Revolving Loans Converted to Term | 3,055 | |
Total | 111,116 | 110,069 |
Pass | Consumer | ||
Loans Receivable and the Allowance for Loan Losses | ||
2023 | 1,229 | |
Revolving Loans Amortized Cost Basis | 11 | |
Total | 1,240 | 546 |
Special Mention | ||
Loans Receivable and the Allowance for Loan Losses | ||
2020 | 915 | |
Total | 915 | 946 |
Special Mention | Residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
2020 | 915 | |
Total | 915 | 946 |
Substandard | ||
Loans Receivable and the Allowance for Loan Losses | ||
2020 | 4,385 | |
Total | 4,385 | 855 |
Substandard | Residential Real Estate | ||
Loans Receivable and the Allowance for Loan Losses | ||
Total | $ 855 | |
Substandard | Construction | ||
Loans Receivable and the Allowance for Loan Losses | ||
2020 | 4,385 | |
Total | $ 4,385 |
Loans Receivable and the All_11
Loans Receivable and the Allowance for Credit Losses - Summary of allowance for credit losses on off balance sheet commitments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |
Provisions of credit loss expense - off-balance sheet commitments | $ (548) |
Ending balance of allowance for Credit Loss on off-balance sheet Commitments | 1,038 |
Impact of adopting ASC 326 | Adoption of ASU 2016-13 | |
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |
Ending balance of allowance for Credit Loss on off-balance sheet Commitments | $ 1,586 |
Premises and Equipment, Net (De
Premises and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 39,420 | $ 38,920 |
Accumulated depreciation and amortization | (13,968) | (12,857) |
Premises and equipment, net | 25,452 | 26,063 |
Depreciation expense | 1,219 | 1,246 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 6,652 | 6,652 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 22,912 | 22,647 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 1,805 | 1,741 |
Furnishings and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 8,051 | $ 7,880 |
Accrued Interest Receivable, _3
Accrued Interest Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Interest Receivable, Net | ||
Loans receivable | $ 12,273 | $ 8,532 |
Securities | 38 | 65 |
Total | $ 12,311 | $ 8,597 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets | ||
Goodwill | $ 1,310,000 | |
Accumulative goodwill impairment | (1,110,000) | |
Goodwill, net of charge-off | $ 0 | 200,000 |
Loss on disposition of business | $ 138,000 | |
Impairment of goodwill | $ 451,000 |
Real Estate Owned ("REO") (Deta
Real Estate Owned ("REO") (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) property | Dec. 31, 2022 USD ($) property | |
Real Estate Owned ("REO") | ||
Number of foreclosed property owned | property | 1 | 1 |
Value of foreclosed property owned | $ 1,456,000 | $ 1,456,000 |
REO expense including loss on sales and write-downs | $ 93,000 | $ 623,000 |
Property Held For Investment (D
Property Held For Investment (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) property | Dec. 31, 2022 USD ($) property | |
Property Held For Investment | ||
Land | $ 500 | $ 500 |
Buildings and improvements | 1,442 | 1,442 |
Property Held For Investment, Cost | 1,942 | 1,942 |
Accumulated depreciation and amortization | (535) | (498) |
Real Estate Investment Property, Net, Total | $ 1,407 | $ 1,444 |
Number of property held for investment | property | 1 | 1 |
Deposits - Total deposits and t
Deposits - Total deposits and the weighted average rate of deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amount | ||
Non-interest bearing | $ 300,184 | $ 376,302 |
NOW and money market | 144,807 | 88,122 |
Total | 444,991 | 464,424 |
Savings accounts | 192,594 | 273,839 |
Certificates of deposit maturing in: | ||
One year or less | 596,091 | 258,873 |
After one to two years | 81,118 | 76,180 |
After two to three years | 1,462 | 34,204 |
After three to four years | 12,371 | 1,318 |
After four years | 71,409 | 13,117 |
Total | 762,451 | 383,692 |
Total deposits | $ 1,400,036 | $ 1,121,955 |
Weighted Average Interest Rate | ||
NOW and money market | 3.07% | 0.95% |
Total | 1% | 0.18% |
Savings accounts | 2.71% | 2.68% |
Certificates of deposit maturing in: | ||
One year or less | 4.83% | 3.11% |
After one to two years | 3.24% | 2.78% |
After two to three years | 0.72% | 0.61% |
After three to four years | 1.31% | 0.75% |
Atter four years | 5.03% | 1.28% |
Total | 4.62% | 2.75% |
Weighted average rate of deposits | 3.20% | 1.67% |
Deposits - Narrative (Details)
Deposits - Narrative (Details) | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) |
Cash and cash equivalents | ||
Demand deposit overdrafts | $ 1,229,000 | $ 517,000 |
Brokered deposits | 311,200,000 | 114,200,000 |
Insured Cash Sweep ("ICS") reciprocal money market deposits | $ 13,000,000 | 10,900,000 |
Number of retail depositors | item | 7 | |
Certificates of deposit | ||
Cash and cash equivalents | ||
Deposits in excess of $2,50,000 | $ 178,112,000 | $ 205,845,000 |
Deposits - Interest expense (De
Deposits - Interest expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest expense on domestic deposit liabilities | ||
Demand deposits | $ 2,459 | $ 918 |
Savings accounts | 6,777 | 2,688 |
Certificates of deposit | 24,945 | 3,938 |
Interest expense on deposits | $ 34,181 | $ 7,544 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Advances maturing in: | ||
One year or less | $ 7,000 | $ 7,000 |
After one to three years | 7,000 | |
After five years (due 2030) | 7,000 | 7,000 |
FHLB advances | $ 14,000 | $ 21,000 |
Weighted Average Interest Rate | ||
One year or less | 2.86% | 2.83% |
After one to three years | 2.86% | |
After five years (due 2030) | 1.61% | 1.61% |
FHLB advances weighted average interest rate (as a percent) | 2.24% | 2.43% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Borrowings | ||
Advances subject to early call or redemption features | $ 0 | |
Outstanding borrowings | $ 14,000 | $ 21,000 |
Minimum | ||
Borrowings | ||
Term of the advance | 2 years | |
Maximum | ||
Borrowings | ||
Term of the advance | 10 years | |
Federal Reserve Bank of New York ("FRBNY"). | ||
Borrowings | ||
Outstanding borrowings | $ 50,000 | |
Interest rate (as a percent) | 5.50% | |
Available borrowing limit | $ 865,100 | |
FHLB | ||
Borrowings | ||
Maximum borrowing capacity | 29,700 | |
Outstanding borrowings | 14,000 | |
Atlantic Community Bankers Bank | ||
Borrowings | ||
Outstanding borrowings | $ 8,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes | ||
Percentage of allowance for bad debt deductible | 8% | |
Bad debt deductions included in retained earnings | $ 4,100 | $ 4,100 |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Current tax expense | 18,832 | 10,894 |
Deferred tax expense | (367) | (1,308) |
Income Tax Expense (Benefit), Total | $ 18,465 | $ 9,586 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
Federal income tax rate | 21% | 21% | |
Federal income tax at statutory rates | $ 13,596 | $ 7,230 | |
State and city tax, net of federal income tax effect | 4,851 | 2,321 | |
Non-taxable income on bank owned life insurance | (213) | (127) | |
Other | 231 | 162 | |
Income Tax Expense (Benefit), Total | $ 18,465 | $ 9,586 | |
Effective Income Tax Rate | 28.50% | 27.80% |
Income Taxes - Net deferred tax
Income Taxes - Net deferred tax assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for credit losses | $ 1,313,000 | $ 1,411,000 |
State net operating loss carryforwards | 24,000 | 150,000 |
Benefit plans | 2,335,000 | 2,063,000 |
Accumulated other comprehensive loss - DRP | 35,000 | |
Other | 653,000 | 273,000 |
Total Deferred Tax Assets | 4,360,000 | 3,897,000 |
Deferred tax liability: | ||
Depreciation | 497,000 | 418,000 |
Goodwill | 52,000 | |
Accumulated other comprehensive gain - DRP | 42,000 | |
Total Deferred Tax Liabilities | 497,000 | 512,000 |
Net Deferred Tax Assets Included in Other Assets | 3,863,000 | $ 3,385,000 |
Valuation Allowance - State Deferred Tax Assets | 0 | |
State and Local Jurisdiction | ||
Deferred tax liability: | ||
Net operating loss (NOL) carryforwards subject to expiration | $ 500,000 |
Other Non-Interest Expenses (De
Other Non-Interest Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Non-Interest Expenses | ||
Other | $ 4,043 | $ 2,827 |
Service contracts | 1,424 | 1,092 |
Consulting expense | 780 | 950 |
Telephone | 673 | 611 |
Directors compensation | 892 | 676 |
Audit and accounting | 497 | 566 |
Insurance | 395 | 372 |
Director, officer, and employee expense | 252 | 258 |
Legal fees | 617 | 765 |
Office supplies and stationary | 167 | 137 |
Recruiting expense | 30 | 93 |
Other non-interest expenses | $ 9,770 | $ 8,347 |
Benefits Plans - Funded status
Benefits Plans - Funded status of the DRP (Details) - Pension Plan - DRP - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Benefits Plans | ||
Projected benefit obligation - beginning | $ 1,808 | $ 2,087 |
Service cost | 94 | 97 |
Interest cost | 85 | 81 |
Actuarial gain | (116) | (353) |
Benefits Paid | (104) | (104) |
Projected benefit obligation - ending | 1,767 | 1,808 |
Accumulated benefit obligation | $ 1,675 | $ 1,712 |
Discount rate | 5.21% | 4.83% |
Rate of increase in future compensation levels | 2% | 2% |
Accounts payable and accrued expenses | ||
Benefits Plans | ||
Funded status - accrued liability included in accounts payable and accrued expenses | $ 1,767 | $ 1,808 |
Benefits Plans - Net periodic p
Benefits Plans - Net periodic pension expense (Details) - Pension Plan - DRP - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net periodic pension expense: | ||
Service cost | $ 94 | $ 97 |
Interest cost | 85 | 81 |
Actuarial (gain) loss amortized | (32) | 27 |
Total net periodic pension expense included in other non-interest expenses | $ 147 | $ 205 |
Discount rate | 5.21% | 4.83% |
Rate of increase in future compensation levels | 2% | 2% |
Benefits Plans - Benefit paymen
Benefits Plans - Benefit payments (Details) - Pension Plan - DRP - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Estimated Future Benefit Payments | ||
2024 | $ 104 | |
2025 | 190 | |
2026 | 204 | |
2027 | 230 | |
2028 | 230 | |
2029 to 2033 | 957 | |
Unrecognized net gain | $ 116 | $ 353 |
Benefits Plans - Narrative (Det
Benefits Plans - Narrative (Details) | 12 Months Ended | |||
Jul. 12, 2021 USD ($) item $ / shares shares | Jul. 05, 2006 shares | Dec. 31, 2023 USD ($) item $ / shares shares | Dec. 31, 2022 USD ($) shares | |
Benefits Plans | ||||
Common stock shares acquired | shares | 5,951,250 | |||
Balance remaining on the ESOP loan | $ 1,581,804,000 | |||
Balance remaining on the ESOP loan | $ 1,212,219,000 | |||
Shares committed to be released | shares | 86,920 | 86,920 | ||
401 (K) Plan | ||||
Benefits Plans | ||||
Participants maximum contribution (as a percent) | 60% | |||
Employers matching contribution (as a percent) | 0% | 0% | ||
401 (K) Plan | Minimum | ||||
Benefits Plans | ||||
Participants maximum contribution (as a percent) | 1% | |||
401 (K) Plan | Maximum | ||||
Benefits Plans | ||||
Participants maximum contribution (as a percent) | 15% | |||
ESOP 2006 | Employee Stock Ownership Plan Loan | ||||
Benefits Plans | ||||
Amount borrowed from company | $ 5,184,200 | |||
Common stock shares acquired | shares | 518,420 | |||
Share price | $ / shares | $ 10 | |||
Interest rate on loans (as a percent) | 8.25% | |||
Number of installments of loans receivable | item | 20 | |||
Balance remaining on the ESOP loan | $ 919,000 | |||
Balance remaining on the ESOP loan | $ 1,327,000 | |||
Shares committed to be released | shares | 2,894 | |||
Expense on defined benefit plan | $ 1,314,000 | 1,075,000 | ||
Dividends on unallocated shares reduced from loan | 188,000 | 365,000 | ||
Dividends on allocated shares charged to retained earnings | 167,000 | 255,000 | ||
ESOP 2021 | Employee Stock Ownership Plan Loan | ||||
Benefits Plans | ||||
Amount borrowed from company | $ 7,827,260 | |||
Common stock shares acquired | shares | 782,726 | |||
Share price | $ / shares | $ 10 | |||
Interest rate on loans (as a percent) | 3.25% | |||
Number of installments of loans receivable | item | 15 | |||
Balance remaining on the ESOP loan | $ 6,417,000 | |||
Balance remaining on the ESOP loan | 6,850,000 | |||
Shares committed to be released | shares | 4,348 | |||
Pension Plan | SERP | ||||
Benefits Plans | ||||
Monthly installments | 50% | |||
Term of average base salary preceding retirement | 3 years | |||
2024 | $ 0 | |||
2025 | 0 | |||
2026 | 0 | |||
2027 | 0 | |||
2028 | 0 | |||
Expense on defined benefit plan | 143,000 | 239,000 | ||
Liability for defined benefit plan | $ 4,160,000 | $ 4,017,000 | ||
Pension Plan | SERP | Minimum | ||||
Benefits Plans | ||||
Benefit payment term | 15 years |
Benefits Plans - ESOP shares (D
Benefits Plans - ESOP shares (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Benefits Plans | ||
Allocated shares | 694,842 | 607,922 |
Shares committed to be released | 86,920 | 86,920 |
Unearned shares | 695,647 | 782,567 |
Total ESOP Shares | 1,477,409 | 1,477,409 |
Less allocated shares distributed to former or retired employees | (143,612) | (122,280) |
Total ESOP Shares Held by Trustee | 1,333,797 | 1,355,129 |
Fair value of unearned shares | $ 12,340,778 | $ 11,675,897 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - 2022 Equity Incentive Plan - shares | Dec. 31, 2023 | Sep. 29, 2022 |
Stock Compensation Plans | ||
Number of shares authorized under incentive plan | 1,369,771 | |
Number of common stock reserved | 132,759 | |
Restricted stock | ||
Stock Compensation Plans | ||
Number of common stock reserved | 34,448 | |
Employee Stock Option | ||
Stock Compensation Plans | ||
Number of common stock reserved | 98,311 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted stock activity (Details) - Restricted stock - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shares | ||
Outstanding, Beginning of year | 352,037 | |
Granted | 4,878 | 352,037 |
Vested | 70,407 | |
Outstanding, end of year | 286,508 | 352,037 |
Weighted Average Grant -Date Market Price | ||
Outstanding, Beginning of year | $ 13.67 | |
Granted | 16.88 | $ 13.67 |
Outstanding, end of year | $ 13.72 | $ 13.67 |
Compensation expense related to restricted stock | $ 968,000 | $ 116,000 |
Compensation cost not yet recognized | $ 3,800,000 | $ 4,700,000 |
Period over which unrecognized compensation costs expected to recognized | 5 years |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock option activity (Details) - Stock option - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Options | ||
Outstanding, Beginning of year | 880,097 | |
Granted | 880,097 | |
Outstanding, end of year | 880,097 | 880,097 |
Exercisable at end of year | 176,019 | |
Weighted Average Grant -Date Market Price | ||
Outstanding, Beginning of year | $ 13.67 | |
Granted | $ 13.67 | |
Outstanding, end of year | 13.67 | 13.67 |
Exercisable at end of year | $ 13.67 | |
Weighted average fair value of options granted in current year | $ 4.36 | |
Compensation cost recognized | $ 768,000 | $ 92,000 |
Unrecognized compensation cost | $ 3,000,000 | |
Period over which unrecognized compensation costs expected to recognized | 5 years |
Stock Based Compensation - Weig
Stock Based Compensation - Weighted average assumptions (Details) - Stock option | 12 Months Ended |
Dec. 31, 2022 | |
Stock Compensation Plans | |
Risk-free interest rate (minimum) | 3.87% |
Risk-free interest rate (maximum) | 3.97% |
Expected volatility (Minimum) | 28.79% |
Expected volatility (Maximum) | 28.94% |
Expected life (years) | 7 years 6 months |
Minimum | |
Stock Compensation Plans | |
Expected dividend yield | 1.70% |
Maximum | |
Stock Compensation Plans | |
Expected dividend yield | 1.94% |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Operating lease option to extend | true |
Finance lease remaining lease terms | 93 years |
Finance lease option to extend | true |
Minimum | |
Leases | |
Operating lease remaining lease terms | 1 year |
Operating lease initial lease terms | 5 years |
Maximum | |
Leases | |
Operating lease remaining lease terms | 10 years |
Operating lease initial lease terms | 10 years |
Leases - Schedule of leases of
Leases - Schedule of leases of the Company (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finance Lease Amounts: | ||
ROU asset | $ 351 | $ 355 |
Lease liability | 571 | 533 |
Operating Lease Amounts: | ||
ROU assets | 4,566 | 2,312 |
Lease liability | 4,625 | 2,363 |
Amortization of ROU asset | 4 | 4 |
Interest on lease liability | 38 | 37 |
Operating Lease Costs | 566 | 567 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Finance lease | 0 | 0 |
Operating leases | $ 511 | $ 558 |
Finance lease | 93 years | 94 years |
Operating leases | 8 years 6 months 29 days | 6 years 2 months 8 days |
Finance lease | 9.50% | 9.50% |
Operating leases | 5.18% | 1.50% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Maturities of Operating lease liabilities | ||
2024 | $ 740 | |
2025 | 738 | |
2026 | 622 | |
2027 | 637 | |
2028 | 595 | |
Thereafter | 2,475 | |
Total lease payments | 5,807 | |
Interest | (1,182) | |
Lease liability | 4,625 | $ 2,363 |
Maturities of Finance lease liabilities | ||
2024 | 30 | |
2025 | 30 | |
2026 | 31 | |
2027 | 36 | |
2028 | 36 | |
Thereafter | 4,016 | |
Total lease payments | 4,179 | |
Interest | (3,608) | |
Lease liability | $ 571 | $ 533 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets carried at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures | ||
Transfer of Assets from Level 1 to 2 | $ 0 | $ 0 |
Transfer of Assets from Level 2 to 1 | 0 | 0 |
Transfer of Liabilities from Level 1 to 2 | 0 | 0 |
Transfer of Liabilities from Level 2 to 1 | 0 | 0 |
Recurring | ||
Fair Value Disclosures | ||
Total assets | 18,102 | 18,042 |
Total Liabilities | 0 | 0 |
Recurring | Mutual funds | ||
Fair Value Disclosures | ||
Total assets | 18,102 | 18,041 |
Recurring | FHLMC | ||
Fair Value Disclosures | ||
Total assets | 1 | |
Level 1 | Recurring | ||
Fair Value Disclosures | ||
Total assets | 18,102 | 18,041 |
Level 1 | Recurring | Mutual funds | ||
Fair Value Disclosures | ||
Total assets | $ 18,102 | 18,041 |
Level 2 | Recurring | ||
Fair Value Disclosures | ||
Total assets | 1 | |
Level 2 | Recurring | FHLMC | ||
Fair Value Disclosures | ||
Total assets | $ 1 |
Fair Value Disclosures - Asse_2
Fair Value Disclosures - Assets carried at fair value on a non-recurring basis (Details) - Non recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures | ||
Total assets | $ 5,841 | $ 2,311 |
Total Liabilities | 0 | 0 |
Collateral dependent loans | ||
Fair Value Disclosures | ||
Total assets | 4,385 | 855 |
Real estate owned | ||
Fair Value Disclosures | ||
Total assets | 1,456 | 1,456 |
Level 3 | ||
Fair Value Disclosures | ||
Total assets | 5,841 | 2,311 |
Level 3 | Collateral dependent loans | ||
Fair Value Disclosures | ||
Total assets | 4,385 | 855 |
Level 3 | Real estate owned | ||
Fair Value Disclosures | ||
Total assets | $ 1,456 | $ 1,456 |
Fair Value Disclosures - Qualit
Fair Value Disclosures - Qualitative information about non-recurring Level III fair value measurements (Details) - Non recurring $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Disclosures | ||
Fair value | $ 5,841 | $ 2,311 |
Real estate owned | ||
Fair Value Disclosures | ||
Fair value | 1,456 | 1,456 |
Collateral dependent loans | ||
Fair Value Disclosures | ||
Fair value | 4,385 | 855 |
Level 3 | ||
Fair Value Disclosures | ||
Fair value | 5,841 | 2,311 |
Level 3 | Impaired loans | Income approach | ||
Fair Value Disclosures | ||
Fair value | $ 855 | |
Level 3 | Impaired loans | Income approach | Capitalization rate | ||
Fair Value Disclosures | ||
Securities held for sale | 5.60 | |
Level 3 | Impaired loans | Income approach | Weighted Average | Capitalization rate | ||
Fair Value Disclosures | ||
Securities held for sale | 5.60 | |
Level 3 | Real estate owned | ||
Fair Value Disclosures | ||
Fair value | 1,456 | $ 1,456 |
Level 3 | Real estate owned | Income approach | ||
Fair Value Disclosures | ||
Fair value | $ 1,456 | $ 1,456 |
Level 3 | Real estate owned | Income approach | Capitalization rate | ||
Fair Value Disclosures | ||
Securities held for sale | 12 | 12 |
Level 3 | Real estate owned | Income approach | Weighted Average | Capitalization rate | ||
Fair Value Disclosures | ||
Securities held for sale | 12 | 12 |
Level 3 | Collateral dependent loans | ||
Fair Value Disclosures | ||
Fair value | $ 4,385 | $ 855 |
Level 3 | Collateral dependent loans | Income approach | ||
Fair Value Disclosures | ||
Fair value | $ 4,385 | |
Level 3 | Collateral dependent loans | Income approach | Capitalization rate | ||
Fair Value Disclosures | ||
Securities held for sale | 6 | |
Level 3 | Collateral dependent loans | Income approach | Weighted Average | Capitalization rate | ||
Fair Value Disclosures | ||
Securities held for sale | 6 |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying amounts and estimated fair value of our financial instruments (Details) - Non recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures | ||
Total assets | $ 5,841 | $ 2,311 |
Carrying Amount | Deposits | ||
Fair Value Disclosures | ||
Financial Liabilities | 1,400,036 | 1,121,955 |
Carrying Amount | Borrowings | ||
Fair Value Disclosures | ||
Financial Liabilities | 64,000 | |
Carrying Amount | FHLB of New York advances | ||
Fair Value Disclosures | ||
Financial Liabilities | 21,000 | |
Carrying Amount | Cash and cash equivalents | ||
Fair Value Disclosures | ||
Total assets | 68,671 | 95,308 |
Carrying Amount | Certificates of deposit | ||
Fair Value Disclosures | ||
Total assets | 100 | 100 |
Carrying Amount | Marketable equity securities | ||
Fair Value Disclosures | ||
Total assets | 18,102 | 18,041 |
Carrying Amount | Securities available for sale | ||
Fair Value Disclosures | ||
Total assets | 1 | |
Carrying Amount | Securities held to maturity | ||
Fair Value Disclosures | ||
Total assets | 15,860 | 26,395 |
Carrying Amount | Loans receivable, net | ||
Fair Value Disclosures | ||
Total assets | 1,581,804 | 1,212,219 |
Carrying Amount | Investments in restricted stock | ||
Fair Value Disclosures | ||
Total assets | 929 | 1,238 |
Carrying Amount | Accrued interest receivable | ||
Fair Value Disclosures | ||
Total assets | 12,311 | 8,597 |
Fair Value | Deposits | ||
Fair Value Disclosures | ||
Financial Liabilities | 1,401,083 | 1,121,107 |
Fair Value | Borrowings | ||
Fair Value Disclosures | ||
Financial Liabilities | 63,053 | |
Fair Value | FHLB of New York advances | ||
Fair Value Disclosures | ||
Financial Liabilities | 19,437 | |
Fair Value | Cash and cash equivalents | ||
Fair Value Disclosures | ||
Total assets | 68,671 | 95,308 |
Fair Value | Certificates of deposit | ||
Fair Value Disclosures | ||
Total assets | 100 | 100 |
Fair Value | Marketable equity securities | ||
Fair Value Disclosures | ||
Total assets | 18,102 | 18,041 |
Fair Value | Securities available for sale | ||
Fair Value Disclosures | ||
Total assets | 1 | |
Fair Value | Securities held to maturity | ||
Fair Value Disclosures | ||
Total assets | 13,126 | 22,865 |
Fair Value | Loans receivable, net | ||
Fair Value Disclosures | ||
Total assets | 1,552,219 | 1,191,483 |
Fair Value | Investments in restricted stock | ||
Fair Value Disclosures | ||
Total assets | 929 | 1,238 |
Fair Value | Accrued interest receivable | ||
Fair Value Disclosures | ||
Total assets | 12,311 | 8,597 |
Level 1 | Fair Value | Cash and cash equivalents | ||
Fair Value Disclosures | ||
Total assets | 68,671 | 95,308 |
Level 1 | Fair Value | Marketable equity securities | ||
Fair Value Disclosures | ||
Total assets | 18,102 | 18,041 |
Level 2 | Fair Value | Deposits | ||
Fair Value Disclosures | ||
Financial Liabilities | 1,401,083 | 1,121,107 |
Level 2 | Fair Value | Borrowings | ||
Fair Value Disclosures | ||
Financial Liabilities | 63,053 | |
Level 2 | Fair Value | FHLB of New York advances | ||
Fair Value Disclosures | ||
Financial Liabilities | 19,437 | |
Level 2 | Fair Value | Certificates of deposit | ||
Fair Value Disclosures | ||
Total assets | 100 | 100 |
Level 2 | Fair Value | Securities available for sale | ||
Fair Value Disclosures | ||
Total assets | 1 | |
Level 2 | Fair Value | Securities held to maturity | ||
Fair Value Disclosures | ||
Total assets | 13,126 | 22,865 |
Level 2 | Fair Value | Investments in restricted stock | ||
Fair Value Disclosures | ||
Total assets | 929 | 1,238 |
Level 2 | Fair Value | Accrued interest receivable | ||
Fair Value Disclosures | ||
Total assets | 12,311 | 8,597 |
Level 3 | ||
Fair Value Disclosures | ||
Total assets | 5,841 | 2,311 |
Level 3 | Fair Value | Loans receivable, net | ||
Fair Value Disclosures | ||
Total assets | $ 1,552,219 | $ 1,191,483 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Balance remaining on the ESOP loan | $ 1,581,804,000 | |
Deposits of related parties | 2,100,000 | $ 2,400,000 |
Kevin P. O'Malley, P.C Law Firm | ||
Related Party Transaction [Line Items] | ||
Payment of related party expenses on construction loans | 497,000 | 835,000 |
Payment of related party expenses on corporate related matter | 0 | 3,000 |
Affiliated Entity [Member] | ||
Related Party Transaction [Line Items] | ||
Balance remaining on the ESOP loan | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Recognition | ||
Deposit-related fees and charges | $ 55 | $ 67 |
Loan-related fees and charges | 892 | 1,064 |
Electronic banking fees and charges | 944 | 863 |
(Loss) gain on disposition of equipment | (18) | 98 |
Income from bank owned life insurance | 1,013 | 604 |
Investment advisory fees | 458 | 474 |
Realized and unrealized gain (loss) on equity securities | 294 | (1,573) |
Miscellaneous | 105 | 86 |
Total Non-Interest Income | $ 3,743 | $ 1,683 |
Parent Company Only Financial_3
Parent Company Only Financial Information - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | |||
Cash and due from banks | $ 13,394 | $ 13,210 | |
Balance remaining on the ESOP loan | 1,581,804 | ||
Total assets | 1,764,135 | 1,424,963 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable and accrued expenses | 13,558 | 14,754 | |
Total liabilities | 1,484,810 | 1,162,974 | |
Total stockholders' equity | 279,325 | 261,989 | $ 251,382 |
Total liabilities and stockholders' equity | 1,764,135 | 1,424,963 | |
Parent Company [Member] | |||
ASSETS | |||
Cash and due from banks | 4,268 | 20,334 | |
Investment in subsidiary | 254,654 | 220,706 | |
Balance remaining on the ESOP loan | 14,121 | 13,688 | |
ESOP loan receivable | 7,336 | 8,177 | |
Total assets | 280,379 | 262,905 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable and accrued expenses | 1,054 | 916 | |
Total liabilities | 1,054 | 916 | |
Total stockholders' equity | 279,325 | 261,989 | |
Total liabilities and stockholders' equity | $ 280,379 | $ 262,905 |
Parent Company Only Financial_4
Parent Company Only Financial Information - Condensed Statements of Financial Condition (Parentheticals) (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Financial Statements, Captions [Line Items] | ||||
ACL on loan receivables | $ 5,093,000 | $ 5,474,000 | ||
ACL on loan receivables | $ 132,000 | 5,474,000 | $ 5,242,000 | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
ACL on loan receivables | $ 45,000 | |||
ACL on loan receivables | $ 92,000 |
Parent Company Only Financial_5
Parent Company Only Financial Information - Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Condensed Financial Statements, Captions [Line Items] | ||
Interest income - loans | $ 127,486 | $ 69,992 |
Interest income - interest-earning deposits | 4,143 | 1,260 |
Provision for loan losses | (972) | (439) |
Income before Income Tax Expense and Equity in Undistributed Earnings of Subsidiary | 64,741 | 34,429 |
Income tax (benefit) expense | 18,465 | 9,586 |
Net income (basic and diluted) | 46,276 | 24,843 |
Comprehensive Income | 46,437 | 25,138 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Interest income - loans | 1,371 | 240 |
Interest income - ESOP loan | 333 | 377 |
Interest income - interest-earning deposits | 179 | 343 |
Dividend income from subsidiary | 14,000 | |
Operating expenses | (2,298) | (956) |
Income before Income Tax Expense and Equity in Undistributed Earnings of Subsidiary | 13,585 | 4 |
Income tax (benefit) expense | (120) | 1 |
Income before Equity in Undistributed Earnings of Subsidiary | 13,705 | 3 |
Equity in undistributed earnings of subsidiary | 32,571 | 24,840 |
Net income (basic and diluted) | 46,276 | 24,843 |
Comprehensive Income | $ 46,336 | $ 25,138 |
Parent Company Only Financial_6
Parent Company Only Financial Information - Statements of Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 46,276 | $ 24,843 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net Cash Provided by Operating Activities | 42,835 | 27,539 |
Cash Flows from Investing Activities | ||
Net Cash Provided (Used in) by Investing Activities | (357,842) | (256,590) |
Cash Flows from Financing Activities | ||
Cash dividends paid | (3,652) | (6,868) |
Stock repurchases | (28,710) | (9,318) |
Net Cash Used in Financing Activities | 288,370 | 172,090 |
Net Decrease in Cash and Cash Equivalents | (26,637) | (56,961) |
Cash and Cash Equivalents - Beginning | 95,308 | 152,269 |
Cash and Cash Equivalents - Ending | 68,671 | 95,308 |
Parent Company | ||
Cash Flows from Operating Activities | ||
Net Income (Loss) | 46,276 | 24,843 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in undistributed earnings of subsidiary | (32,571) | (24,840) |
Other, net | 2,183 | 544 |
Net Cash Provided by Operating Activities | 15,888 | 547 |
Cash Flows from Investing Activities | ||
Repayment of ESOP loan | 841 | 796 |
Net increase in loans | (433) | (9,211) |
Net Cash Provided (Used in) by Investing Activities | 408 | (8,415) |
Cash Flows from Financing Activities | ||
Cash dividends paid | (3,652) | (6,868) |
Stock repurchases | (28,710) | (9,318) |
Net Cash Used in Financing Activities | (32,362) | (16,186) |
Net Decrease in Cash and Cash Equivalents | (16,066) | (24,054) |
Cash and Cash Equivalents - Beginning | 20,334 | 44,388 |
Cash and Cash Equivalents - Ending | $ 4,268 | $ 20,334 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 46,276 | $ 24,843 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |