PARKE BANCORP INC

Previous wording

At June 30, 2024, we had total assets of $2.03 billion, and total equity of $292.8 million. Net income available to common shareholders for the three and six months ended June 30, 2024 was $6.5 million and $12.6 million, respectively.

Current wording

At September 30, 2024, we had total assets of $2.07 billion, and total equity of $296.5 million. Net income available to common shareholders for the three and nine months ended September 30, 2024 was $7.5 million and $20.1 million, respectively.

Previous wording

Net Income: Our net income available to common shareholders for the second quarter of 2024 decreased $1.7 million, or 20.6%, to $6.5 million, compared to $8.1 million for the same period last year. Earnings per share were $0.54 per basic common share and $0.53 per diluted common share for the second quarter of 2024, compared to $0.68 per basic common share and $0.67 per diluted common share for the same period last year. The decrease was primarily due to higher interest expense, and a decrease in non-interest income.

Current wording

Net Income: Our net income available to common shareholders for the third quarter of 2024 increased $6.5 million, or 634.1%, to $7.5 million, compared to $1.0 million for the same period last year. Earnings per share were $0.63 per basic common share and $0.62 per diluted common share for the third quarter of 2024, compared to $0.09 per basic common share and $0.08 per diluted common share for the same period last year. The increase was primarily due to a decrease in non-interest expense and an increase in interest income, partially offset by higher interest expense, and a decrease in non-interest income.

Previous wording

Net Interest Income: Our net interest income was $14.3 million for the second quarter of 2024 compared to $15.9 million for the second quarter of 2023, a decrease of $1.6 million, or 9.8%. Net interest income decreased during the three months ended June 30, 2024, primarily due to an increase in interest expense on deposits and borrowings, partially offset by an increase in interest and fees on loans. Interest income increased $2.9 million, or 10.7%, during the three months ended June 30, 2024 as compared to the same period in the prior year. The increase in interest income was primarily due to an increase of $3.0 million in interest and fees on loans, due to higher loan balances and market interest rates, partially offset by a $0.1 million decrease in interest on deposits with banks. The increase in interest income was offset by an increase in interest expense during the three months ended June 30, 2024 of $4.5 million, or 39.3%, primarily due to an increase in market interest rates on deposits and the overall mix of deposits of $4.6 million, and increase in market interest rates.

Current wording

Net Interest Income: Our net interest income was $14.7 million for the third quarter of 2024 compared to $15.7 million for the third quarter of 2023, a decrease of $1.0 million, or 6.1%. Net interest income decreased during the three months ended September 30, 2024, primarily due to an increase in interest expense on deposits and borrowings, partially offset by an increase in interest and fees on loans. Interest income increased $3.0 million, or 10.3%, during the three months ended September 30, 2024 as compared to the same period in the prior year. The increase in interest income was primarily due to an increase of $2.9 million in interest and fees on loans, due to higher loan balances and market interest rates. The increase in interest income was offset by an increase in interest expense during the three months ended September 30, 2024 of $4.0 million, or 29.5%, primarily due to an increase in market interest rates on deposits and the overall mix of deposits of $3.6 million, and increase in market interest rates.

Previous wording

Provision for credit losses: For the three months ended June 30, 2024, the provision for credit losses was $0.5 million, compared to a provision of $0.5 million for the three months ended June 30, 2023. The provision expense for the three months ended June 30, 2024, was primarily driven by an increase in the construction loan portfolio balance from the quarter ended March 31, 2024, which carries a higher loss factor than other loan portfolios.

Current wording

Provision for credit losses: For the three months ended September 30, 2024, the provision for credit losses was a recovery of $0.1 million, compared to a provision of $0.3 million for the three months ended September 30, 2023. The provision recovery for the three months ended September 30, 2024, was primarily driven by a decrease in the 1 - 4 family investment property loan portfolio qualitative factor rate from the quarter ended June 30, 2024.

Previous wording

Non-interest Income: Our non-interest income was $1.2 million for the three months ended June 30, 2024, a decrease of $0.4 million, compared to $1.6 million for the three months ended June 30, 2023. The decrease is primarily attributable to a decrease in service fees on deposit accounts of $0.6 million due to a decrease in cannabis deposit fee income, partially offset by an increase in other non-interest income of $0.2 million.

Current wording

Non-interest Income: Our non-interest income was $0.9 million for the three months ended September 30, 2024, a decrease of $0.9 million, compared to $1.8 million for the three months ended September 30, 2023. The decrease is primarily attributable to a decrease in service fees on deposit accounts of $0.7 million due to a decrease in cannabis deposit fee income, and a decrease in other non-interest income of $0.3 million.

Previous wording

Income Tax: Income tax expense was $2.3 million on income before taxes of $8.8 million for the three months ended June 30, 2024, resulting in an effective tax rate of 26.6%, compared to income tax expense of $2.5 million on income before taxes of $10.6 million for the same period of 2023, resulting in an effective tax rate of 23.2%.

Current wording

Income Tax: Income tax expense was $1.9 million on income before taxes of $9.4 million for the three months ended September 30, 2024, resulting in an effective tax rate of 20.1%, compared to income tax expense of $0.3 million on income before taxes of $1.4 million for the same period of 2023, resulting in an effective tax rate of 24.8%.

Previous wording

Net income: Our net income available to common shareholders for the six months ended June 30, 2024 decreased $6.7 million, or 34.6%, to $12.6 million compared to $19.2 million for the six months ended June 30, 2023. Earnings per share were $1.05 per basic common share and $1.04 per diluted common share for the six months ended June 30, 2024 compared to $1.61 per basic common share and $1.59 per diluted common share for the same period last year. The decrease in net income available to common shareholders primarily resulted from an increase in interest expense of $11.0 million, an increase in provision for credit losses of $2.6 million, and a decrease in non-interest income of $1.1 million, partially offset by an increase in interest income of $6.4 million.

Current wording

Net income: Our net income available to common shareholders for the nine months ended September 30, 2024 decreased $0.2 million, or 0.8%, to $20.1 million compared to $20.3 million for the nine months ended September 30, 2023. Earnings per share were $1.68 per basic common share and $1.66 per diluted common share for the nine months ended September 30, 2024 compared to $1.70 per basic common share and $1.67 per diluted common share for the same period last year. The decrease in net income available to common shareholders primarily resulted from an decrease in net interest income of $5.6 million, an increase in provision for credit losses of $2.1 million, and a decrease in non-interest income of $2.1 million, partially offset by an decrease in non-interest expense of $9.8 million.

Previous wording

Net interest income: Our net interest income decreased $4.6 million, or 14.1%, to $28.4 million for the six months ended June 30, 2024, compared to $33.0 million for the same period last year. Interest income for the six months ended June 30, 2024, increased $6.4 million to $59.7 million, or 12.0%, from $53.3 million for the same period of 2023. The increase in interest income was primarily due to an increase in interest and fees on loans of $6.5 million, primarily due to an increase in market interest rates and balances outstanding, partially offset by a decrease in interest earned on Federal Reserve Bank ("FRB") deposits of $0.2 million. Interest expense increased $11.0 million, or 54.4%, for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to an increase in interest paid on deposits of $10.5 million, or 62.9%, primarily due to an increase in market interest rates and a shift in deposit mix. Further contributing to the increase in interest expense was an increase in interest on borrowings of $0.5 million, or 15.1%, due to an increase in borrowing levels and higher market interest rates.

Current wording

Net interest income: Our net interest income decreased $5.6 million, or 11.5%, to $43.1 million for the nine months ended September 30, 2024, compared to $48.7 million for the same period last year. Interest income for the nine months ended September 30, 2024, increased $9.4 million to $91.8 million, or 11.4%, from $82.4 million for the same period of 2023. The increase in interest income was primarily due to an increase in interest and fees on loans of $9.4 million, primarily due to an increase in market interest rates and balances outstanding. Interest expense increased $15.0 million, or 44.5%, for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to an increase in interest paid on deposits of $14.1 million, or 50.2%, primarily due to an increase in market interest rates and a shift in deposit mix. Further contributing to the increase in interest expense was an increase in interest on borrowings of $0.9 million, or 16.2%, due to an increase in borrowing levels and higher market interest rates.

Previous wording

Provision for credit losses: The provision for credit losses was $0.7 million for the six months ended June 30, 2024, compared to a recovery of provision for credit losses of $1.9 million for the six months ended June 30, 2023. The provision for credit losses for the six months ended June 30, 2024 was primarily driven by an increase in the outstanding loan balance of $17.8 million from the balance at December 31, 2023, specifically in the construction 1 - 4 family, and multi-family portfolios. The provision recovery of $1.9 million during the same period in 2023 was primarily related to decreases in loss factors related to the construction, commercial owner occupied, and residential 1 to 4 family investment portfolios. For more information about our provision for credit losses and our allowance for loan and lease losses and loss experience, see “Financial Condition-Allowance for Loan and Lease Losses” below and Note 4 - Loans And Allowance For Credit Losses on Loans to the unaudited consolidated financial statements.

Current wording

Provision for credit losses: The provision for credit losses was $0.5 million for the nine months ended September 30, 2024, compared to a recovery of provision for credit losses of $1.6 million for the nine months ended September 30, 2023. The increase in the provision for credit losses for the nine months ended September 30, 2024 was primarily due to an increase in the outstanding loan balance of $52.6 million from the balance at December 31, 2023, specifically in the construction 1 - 4 family, and multi-family loan portfolios. The provision recovery of $1.6 million during the same period in 2023 was primarily related to decreases in loss factors related to the construction, commercial owner occupied, and residential 1 to 4 family investment portfolios. For more information about our provision for credit losses and our allowance for loan and lease losses and loss experience, see “Financial Condition-Allowance for Loan and Lease Losses” below and Note 4 - Loans And Allowance For Credit Losses on Loans to the unaudited consolidated financial statements.

Previous wording

Non-interest income: Our non-interest income was $2.3 million for the six months ended June 30, 2024, a decrease of $1.1 million, or 33.0%, compared to $3.4 million for the same period last year. The decrease is primarily attributable to a decrease in service fees on deposit accounts of $1.4 million, partially offset by an increase in other income of $0.3 million. Fee income for the six months ended June 30, 2024 from commercial deposit accounts of depositors who do business in the cannabis-related industry totaled $0.5 million, compared to $2.0 million for the same period last year. Fee income is included in service fees on deposit accounts in the accompanying Consolidated Statements of Income.

Current wording

Non-interest income: Our non-interest income was $3.2 million for the nine months ended September 30, 2024, a decrease of $2.0 million, or 39.3%, compared to $5.2 million for the same period last year. The decrease is primarily attributable to a decrease in service fees on deposit accounts of $2.1 million. Fee income for the nine months ended September 30, 2024 decreased primarily from commercial deposit accounts of depositors who do business in the cannabis-related industry totaled $0.8 million, compared to $2.9 million for the same period last year. Fee income is included in service fees on deposit accounts in the accompanying Consolidated Statements of Income.

Previous wording

Non-interest Expense: Our non-interest expense decreased $0.1 million, or 2.1%, to $6.2 million for the three months ended June 30, 2024, from $6.4 million for the three months ended June 30, 2023. The decrease in non-interest expense was primarily due to a decrease in other operating expense of $0.3 million, and data processing expense of $0.1 million, partially offset by an increase in compensation and benefits of $0.1 million.

Current wording

Non-interest expense: Our non-interest expense decreased $9.8 million to $19.1 million for the nine months ended September 30, 2024, from $29.0 million for the nine months ended September 30, 2023. The decrease in non-interest expense was primarily due to a $9.5 million non-recurring loss recorded in the nine months ended September 30, 2023.

Previous wording

Income Tax: Income tax expense was $4.6 million on income before taxes of $17.2 million for the six months ended June 30, 2024, resulting in an effective tax rate of 26.6%, compared to income tax expense of $5.9 million on income before taxes of $25.2 million for the same period of 2023, resulting in an effective tax rate of 23.5%.

Current wording

Income Tax: Income tax expense was $6.5 million on income before taxes of $26.6 million for the nine months ended September 30, 2024, resulting in an effective tax rate of 24.3%, compared to income tax expense of $6.2 million on income before taxes of $26.5 million for the same period of 2023, resulting in an effective tax rate of 23.5%.

Previous wording

At June 30, 2024, the Company’s total assets were $2.03 billion, an increase of $3.6 million, or 0.2%, from December 31, 2023. The increase in total assets was primarily attributable to an increase in loans receivable and an increase in restricted stock, partially offset by a decrease in cash and cash equivalents and a decrease in other assets. Loans increased $17.8 million, primarily due to increases in the construction and multi-family portfolios, partially offset by a decrease in the CRE non-owner occupied portfolio. Restricted stock increased $2.3 million due to an increase in FHLBNY advances. Cash and cash equivalents decreased $12.7 million, or 7.0%, primarily due to the increase in loans, and the decrease in deposits, partially offset by an increase in FHLBNY borrowings. Other assets decreased $3.3 million during the three months ended June 30, 2024, to $7.2 million at June 30, 2024, from $10.5 million at December 31, 2023, primarily driven by a decrease in prepaid taxes.

Current wording

At September 30, 2024, the Company’s total assets were $2.07 billion, an increase of $41.9 million, or 2.1%, from December 31, 2023. The increase in total assets was primarily attributable to an increase in loans receivable and an increase in FHLBNY restricted stock, partially offset by a decrease in cash and cash equivalent, investment securities, and other assets. Loans increased $52.6 million, primarily due to increases in the construction, multi-family, and CRE owner portfolios. FHLBNY restricted stock increased $1.0 million due to an increase in FHLBNY advances. Cash and cash equivalents decreased $7.9 million, or 4.4%, primarily due to the increase in loans, partially offset by the increase in deposits and borrowings. Other assets decreased $3.4 million during the nine months ended September 30, 2024, to $7.2 million at September 30, 2024, from $10.5 million at December 31, 2023, primarily driven by a decrease in prepaid taxes.

Previous wording

Total liabilities were $1.73 billion at June 30, 2024. This represented a $4.8 million, or 0.3%, decrease, from $1.74 billion at December 31, 2023. The decrease in total liabilities was primarily due to a decrease in deposits of $56.4 million, or 3.6%, to $1.50 billion at June 30, 2024, from $1.55 billion at December 31, 2023, partially offset by an increase in borrowings of $50.0 million, or 40.0%, to $218.2 million at June 30, 2024. The decrease in deposits was primarily due to a decrease in non-interest demand deposits of $33.4 million, a decrease in savings deposits of $16.4 million, and a decrease in time deposits of $44.7 million, partially offset by an increase in money market deposits of $42.8 million. The increase in borrowings was due to additional FHLBNY advances.

Current wording

Total liabilities were $1.77 billion at September 30, 2024. This represented a $29.8 million, or 1.7%, increase, from $1.74 billion at December 31, 2023. The increase in total liabilities was primarily due to an increase in deposits of $6.1 million, or 0.4%, to $1.56 billion at September 30, 2024, from $1.55 billion at December 31, 2023, and an increase in borrowings of $20.1 million, or 16.0%, to $188.3 million at September 30, 2024. The increase in deposits was primarily due to an increase in brokered time deposits of $48.4 million, and time deposits of $21.4 million, partially offset by a decrease in non-interest demand deposits of $33.7 million, and a decrease in savings deposits of $25.5 million. The increase in borrowings was due to additional FHLBNY advances.

Previous wording

Total equity was $292.8 million and $284.3 million at June 30, 2024 and December 31, 2023, respectively, an increase of $8.5 million from December 31, 2023. The increase was primarily due to the retention of earnings, partially offset by the payment of $4.3 million of cash dividends.

Current wording

Total equity was $296.5 million and $284.3 million at September 30, 2024 and December 31, 2023, respectively, an increase of $12.1 million from December 31, 2023. The increase was primarily due to the retention of earnings, partially offset by the payment of $6.4 million of cash dividends, and the repurchase of Company common stock of $2.0 million.

Previous wording

Cash and cash equivalents decreased $12.7 million to $167.7 million at June 30, 2024 from $180.4 million at December 31, 2023, a decrease of 7.0%. The decrease was primarily due to an increase in loans, and a decrease in deposits, partially offset by an increase in borrowings.

Current wording

Cash and cash equivalents decreased $7.9 million to $172.4 million at September 30, 2024 from $180.4 million at December 31, 2023, a decrease of 4.4%. The decrease was primarily due to an increase in loans, partially offset by an increase in deposits and borrowings.

Previous wording

Total investment securities decreased to $15.5 million at June 30, 2024, from $16.4 million at December 31, 2023, a decrease of $0.9 million or 5.4%. The decrease was attributed to normal pay downs. For detailed information on the composition and maturity distribution of our investment portfolio, see NOTE 3 - Investment Securities in the notes to the unaudited consolidated financial statements.

Current wording

Total investment securities decreased to $15.3 million at September 30, 2024, from $16.4 million at December 31, 2023, a decrease of $1.1 million or 6.8%. The decrease was attributed to normal pay downs. For detailed information on the composition and maturity distribution of our investment portfolio, see NOTE 3 - Investment Securities in the notes to the unaudited consolidated financial statements.

Previous wording

Loans receivable: Loans receivable increased to $1.81 billion at June 30, 2024, from $1.79 billion at December 31, 2023, an increase of $17.8 million, or 1.0%. The increase was primarily due to increases in the construction, and Residential - Multifamily loan portfolios, partially offset by a decrease in the Commercial - Non-Owner Occupied loan portfolio. Loans receivable as of June 30, 2024 and December 31, 2023, consisted of the following:

Current wording

Loans receivable: Loans receivable increased to $1.84 billion at September 30, 2024, from $1.79 billion at December 31, 2023, an increase of $52.6 million, or 2.9%. The increase was primarily due to increases in the construction, CRE-owner occupied, and Residential - Multifamily loan portfolios. Loans receivable as of September 30, 2024 and December 31, 2023, consisted of the following:

Previous wording

At June 30, 2024, total deposits decreased to $1.50 billion from $1.55 billion at December 31, 2023, a decrease of $56.4 million, or 3.6%. The decrease in deposits was primarily due to a decrease in noninterest-bearing deposits, savings deposits, and time deposit balances, partially offset by an increase in money market deposits balances. The decrease in the noninterest-bearing deposit balance was primarily driven by a $25.0 million decrease in our cannabis checking account, as well as a $9.6 million decrease in our business checking accounts. The decrease in the savings deposits was primarily due to a $12.3 million decrease in our preferred savings accounts. The decrease in our time deposits was primarily due to $34.8 million decrease in our 13 and 21 months CD promotional accounts, and an $8.0 million decrease in brokered time deposits. The increase in our money market deposits was primarily due to a $138.4 million increase in our premier money market accounts, $60.0 million of which was cannabis deposits, partially offset by a $75.1 million decrease in brokered money market accounts.

Current wording

At September 30, 2024, total deposits increased to $1.56 billion from $1.55 billion at December 31, 2023, an increase of $6.1 million, or 0.4%. The increase in deposits was primarily due to an increase in brokered time deposits of $48.4 million and an increase in time deposits of $21.4 million, partially offset by a decrease in non-interest demand deposits and savings deposits of $33.7 million and $25.5 million, respectively. The increase in our brokered time deposits was primarily due to our increased usage of brokered funds. The increase in our time deposit balance is primarily due to an increase in twelve month certificates of deposit of $157.8 million and an increase of $60.0 million in six month certificates of deposit, partially offset by a decrease of $120.3 million and $52.9 million in fifteen month and twenty one month certificates of deposit, respectively. The decrease in the noninterest-bearing deposit balance was primarily due to a $29.6 million decrease in cannabis checking account. The decrease in the savings deposits was primarily due to a $11.2 million decrease in our preferred savings accounts, as well as a $6.8 million and $4.0 million decrease in our platinum plus and statement savings accounts, respectively.

Previous wording

Total borrowings were $218.2 million at June 30, 2024 and $168.1 million at December 31, 2023. The increase in borrowings is due to an increase of $50.0 million in FHLBNY advances. At June 30, 2024, $155.0 million of the outstanding FHLBNY advances have short-term maturities.

Current wording

Total borrowings were $188.3 million at September 30, 2024 and $168.1 million at December 31, 2023. The increase in borrowings is due to an increase of $20.0 million in FHLBNY advances. At September 30, 2024, $125.0 million of the outstanding FHLBNY advances have short-term maturities.

Previous wording

Total equity increased to $292.8 million at June 30, 2024 from $284.3 million at December 31, 2023, an increase of $8.5 million, or 3.0%, primarily due to the retention of earnings from the period, partially offset by the payment of $4.3 million in cash dividends.

Current wording

Total equity increased to $296.5 million at September 30, 2024 from $284.3 million at December 31, 2023, an increase of $12.1 million, or 4.3%, primarily due to the retention of earnings from the period, partially offset by the payment of $6.4 million of cash dividends, and the repurchase of Company common stock of $2.0 million.

Previous wording

Liquidity is a measure of our ability to generate cash to support asset growth, meet deposit withdrawals, satisfy other contractual obligations, and otherwise operate on an ongoing basis. At June 30, 2024, our cash position was $167.7 million. We invest cash that is in excess of our immediate operating needs primarily in our interest-bearing account at the Federal Reserve.

Current wording

Liquidity is a measure of our ability to generate cash to support asset growth, meet deposit withdrawals, satisfy other contractual obligations, and otherwise operate on an ongoing basis. At September 30, 2024, our cash position was $172.4 million. We invest cash that is in excess of our immediate operating needs primarily in our interest-bearing account at the Federal Reserve.

Previous wording

We also use brokered deposits as a funding source. The Bank joined the IntraFi Financial Network to secure an additional alternative funding source. IntraFi provides the Bank an additional source of external funds through their weekly CDARS® settlement process, as well as their ICS® money market product. As of June 30, 2024, the Company had $72.2 million of brokered deposits sourced from IntraFi. Additionally, we have access to other brokered deposit funding sources that we utilize as a source of additional liquidity. During the 2nd quarter of 2024, we entered into relationships with Wells Fargo and Piper Sandler to obtain brokered deposits, and as of June 30, 2024, the Company had $90.3 million sourced from these broker relationships. While deposit accounts comprise the vast majority of our funding needs, we maintain secured borrowing lines with the FHLBNY. As of June 30, 2024, the Company had lines of credit with the FHLBNY of $1.04 billion, of which $175.0 million was outstanding, and an additional $60.0 million from a letter of credit for securing public funds. The remaining borrowing capacity was $804.5 million at June 30, 2024.

Current wording

We also use brokered deposits as a funding source. The Bank joined the IntraFi Financial Network to secure an additional alternative funding source. IntraFi provides the Bank an additional source of external funds through their weekly CDARS® settlement process, as well as their ICS® money market product. As of September 30, 2024, the Company had $13.2 million of brokered deposits sourced from IntraFi. Additionally, we have access to other brokered deposit funding sources that we utilize as a source of additional liquidity. In addition to IntraFi, we utilize Wells Fargo and Piper Sandler to obtain brokered deposits, and as of September 30, 2024, the Company had $183.7 million sourced from these broker relationships. While deposit accounts comprise the vast majority of our funding needs, we maintain secured borrowing lines with the FHLBNY and the Federal Reserve Bank ("FRB"). As of September 30, 2024, the Company had lines of credit with the FHLBNY of $930.5 million, of which $145.0 million was outstanding, and an additional $50.0 million from a letter of credit for securing public funds. The remaining borrowing capacity was $735.5 million at September 30, 2024. As of September 30, 2024, the Company had a borrowing capacity through the FRB discount window of $76.3 million. There were no balances outstanding with the FRB as of September 30, 2024.

Previous wording

We had outstanding loan commitments of $114.8 million at June 30, 2024. Our loan commitments are normally originated with the full amount of collateral. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The funding requirements for such commitments occur on a measured basis over time and would be funded by normal deposit growth.

Current wording

We had outstanding loan commitments of $121.5 million at September 30, 2024. Our loan commitments are normally originated with the full amount of collateral. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The funding requirements for such commitments occur on a measured basis over time and would be funded by normal deposit growth.

Previous wording

The following is a discussion of our cash flows for the six months ended June 30, 2024 and 2023.

Current wording

The following is a discussion of our cash flows for the nine months ended September 30, 2024 and 2023.

Previous wording

Cash provided by operating activities was $17.2 million in the six months ended June 30, 2024, compared to $14.7 million for the same period in the prior year. The increase in operating cash flow was primarily due to the decrease in accrued interest receivable and other assets, and the increase in provision for credit losses, partially offset by the decrease in net income.

Current wording

Cash provided by operating activities was $26.6 million in the nine months ended September 30, 2024, compared to $14.0 million for the same period in the prior year. The increase in operating cash flow was primarily due to the decrease in accrued interest receivable and other assets, the increase in accrued interest payable, and the increase in provision for credit losses, partially.

Previous wording

Cash used in investing activities was $19.3 million in the six months ended June 30, 2024, compared to cash used in investing activities of $38.5 million in the same period last year. The decrease in cash used in the investing activities during the six months ended June 30, 2024, was primarily due to the decrease in cash outflow from the origination of loans, and the redemption of restricted stock, during the period.

Current wording

Cash used in investing activities was $52.3 million in the nine months ended September 30, 2024, compared to cash used in investing activities of $48.0 million in the same period last year. The increase in cash used in the investing activities during the nine months ended September 30, 2024, was primarily due to the increase in cash outflow from the origination of loans.

Previous wording

Cash used in financing activities was $10.6 million in the six months ended June 30, 2024, compared to cash used in financing activities of $20.9 million in the same period last year. The decrease in cash used in financing activities during the six months ended June 30, 2024, was primarily due to lower decrease in noninterest-bearing deposits and interest-bearing deposits, and the increase in FHLBNY short-term borrowings, partially offset by the decrease in FHLBNY long-term borrowings, and the decrease in Federal Reserve short-term borrowings.

Current wording

Cash provided by financing activities was $17.7 million in the nine months ended September 30, 2024, compared to cash used in financing activities of $21.4 million in the same period last year. The increase in cash provided by financing activities during the nine months ended September 30, 2024, was primarily due to lower decrease in noninterest-bearing deposits, and the increase in FHLBNY short-term borrowings, partially offset by lower increase in interest-bearing deposits, the decrease in FHLBNY long-term borrowings, and the decrease in Federal Reserve short-term borrowings.

Previous wording

We utilize a comprehensive process for assessing the Company’s overall capital adequacy. We actively review our capital strategies in light of current and anticipated business risks, future growth opportunities, industry standards, and compliance with regulatory requirements. The assessment of overall capital adequacy depends on a variety of factors, including asset quality, liquidity, earnings stability, competitive forces, economic conditions, and strength of management. Our objective is to maintain capital at an amount commensurate with our risk profile and risk tolerance objectives, and to meet both regulatory and market expectations. We primarily manage our capital through the retention of earnings. We also use other means to manage our capital. Total equity increased $8.5 million at June 30, 2024, from December 31, 2023, primarily from the Company’s net income of $12.6 million for the period, net of common and preferred stock dividends of $4.3 million.

Current wording

We utilize a comprehensive process for assessing the Company’s overall capital adequacy. We actively review our capital strategies in light of current and anticipated business risks, future growth opportunities, industry standards, and compliance with regulatory requirements. The assessment of overall capital adequacy depends on a variety of factors, including asset quality, liquidity, earnings stability, competitive forces, economic conditions, and strength of management. Our objective is to maintain capital at an amount commensurate with our risk profile and risk tolerance objectives, and to meet both regulatory and market expectations. We primarily manage our capital through the retention of earnings. We also use other means to manage our capital. Total equity increased $12.1 million at September 30, 2024, from December 31, 2023, primarily from the Company’s net income of $20.1 million for the period, net of common and preferred stock dividends of $6.5 million and treasury stock repurchases of $2.0 million.