PARKE BANCORP, INC.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
PKBK$32.62+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001315399-25-000046
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001437749-25-025079
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 62 previous paragraphs and 74 current paragraphs.
35 unchanged; 24 reworded; 12 added; 2 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 5 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Forward-Looking Statements
Current report
Throughout this report, "Parke Bancorp" and "the Company" refer to Parke Bancorp Inc., and its consolidated subsidiaries. The Company is collectively referred to as "we", "us" or "our". Parke Bank is referred to as the "Bank".
Current report
The Company may from time to time make written or oral "forward-looking statements" including statements contained in this Report and in other communications by the Company which are made in good faith pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, such as statements of the Company's plans, objectives, expectations, estimates and intentions, involve risks and uncertainties and are subject to change based on various important factors (some of which are beyond the Company's control). The following factors, among others, could cause the Company's financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, trade, tariff, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System (the "Federal Reserve"), inflation, interest rate, market and monetary fluctuations; the potential adverse effects of the Consent Orders and any additional regulatory restrictions that may be imposed by banking regulators; the timely development of, and acceptance of, new products and services of the Company and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors' products and services; the impact of changes in financial services laws and regulations (including laws concerning taxes, banking, securities and insurance); the effect of any change in federal government enforcement of federal laws affecting the cannabis industry; technological changes; acquisitions; changes in consumer spending and saving habits; and the success of the Company at managing the risks involved in the foregoing.
Current report
Financial institutions can be affected by changing conditions in the real estate and financial markets. The effects of geopolitical instability, including the conflict between Russia and Ukraine and the war in Israel, foreign currency exchange volatility, volatility in global capital markets, inflationary pressures, higher tariffs, and higher interest rates may meaningfully impact loan production, income levels, and the measurement of certain significant estimates such as the allowance for credit losses. Moreover, in a period of economic contraction, we may experience elevated levels of credit losses, reduced interest income, impairment of financial assets, diminished access to capital markets and other funding sources, and reduced demand for our products and services. Volatility in the housing markets, real estate values and unemployment levels results in significant write-downs of asset values by financial institutions. Our lending relationships are primarily with small to mid-sized businesses and individual consumers residing in and around southern New Jersey and Philadelphia, Pennsylvania. We focus our lending efforts primarily in three lending areas: residential mortgage loans, commercial mortgage loans, and construction loans. As a result of this geographic concentration, a significant broad-based deterioration in economic conditions in these areas could have a material adverse impact on the quality of our loan portfolio, results of operations and future growth potential.
Current report
Our operations are subject to risks and uncertainties surrounding our exposure to changes in the interest rate environment. Earnings and liquidity depend to a great extent on our interest rates. Interest rates are highly sensitive to many factors beyond our control, including competition, general economic conditions, geopolitical tensions and monetary, trade, tariff, and fiscal policies of various governmental and regulatory authorities, including the Federal Reserve. Conditions such as inflation, deflation, recession, unemployment and other factors beyond our control may also affect interest rates. The nature and timing of any changes in interest rates or general economic conditions and their effect on us cannot be controlled and are difficult to predict. If the rate of interest we pay on our interest-bearing liabilities increases more than the rate of interest we receive on our interest-earning assets, our net interest income, and therefore our earnings, could contract and be materially adversely affected. Our earnings could also be materially adversely affected if the rates on interest-earning assets fall more quickly than those on our interest-bearing liabilities. Changes in interest rates could also create competitive pressures, which could impact our liquidity position.
Current report
Changes in interest rates also can affect our ability to originate loans, our ability to obtain and retain deposits, and the value of interest-earning assets, and the ability to realize gains from the sale of such assets, which could all negatively impact shareholder's equity and regulatory capital.
Current report
The Company cautions that the foregoing list of important factors is not exclusive. The Company also cautions readers not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date on which they are given. The Company is not obligated to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after any such date.
Current report
Non-interest Income: Our non-interest income was $0.8 million for the three months ended June 30, 2025, a decrease of $0.4 million, compared to $1.2 million for the three months ended June 30, 2024. The decrease is primarily attributable to a decrease in other income attributed to legal settlements and insurance proceeds received during the same period in 2024.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Net Income: Our net income available to common shareholders for the six months ended June 30, 2025 increased $3.5 million, or 27.4%, to $16.1 million, compared to $12.6 million for the six months ended June 30, 2024. Earnings per share were $1.36 per basic common share and $1.34 per diluted common share for the six months ended June 30, 2025, compared to $1.05 per basic common share and $1.04 per diluted common share for the six months ended June 30, 2024. The increase was primarily due to an increase in net interest income, partially offset by an increase in provision for credit losses, a decrease in non-interest income, and an increase in non-interest expense.
Current report
Provision for credit losses: For the six months ended June 30, 2025, the provision for credit losses was $1.6 million, compared to $0.7 million for the six months ended June 30, 2024, an increase of $0.9 million. The increase was primarily due to an increase in the commercial non-owner occupied and construction loan portfolios outstanding loan balances of $66.6 million, from the balance at December 31, 2024, partially offset by a decrease in the residential - 1 to 4 family investment loan portfolio.
Current report
Non-interest Expense: For the six months ended June 30, 2025, non-interest expense increased $0.4 million, or 3.5%, to $13.2 million, compared to the same period in 2024. The increase in non-interest expense was primarily due to an increase in professional services of $0.4 million, an increase in compensation and benefits of $0.3 million, and an increase in data processing expense of $0.2 million, partially offset by a decrease in OREO expense of $0.4 million, and a decrease in other operating expense of $0.2 million, compared to the six months ended June 30, 2024.
Removed paragraphs (2)
Previous report
*The average balance of loans includes loans on nonaccrual.
Previous report
** Includes balances of FHLBNY and ACBB stock.
Reworded paragraphs (24)
Previous wording
At March 31, 2025, we had total assets of $2.14 billion, and total equity of $305.9 million. Net income available to common shareholders for the three months ended March 31, 2025 was $7.8 million.
Current wording
At June 30, 2025, we had total assets of $2.17 billion, and total equity of $312.2 million. Net income available to common shareholders for the three and six months ended June 30, 2025 was $8.3 million and $16.1 million, respectively.
Previous wording
Net Income: Our net income available to common shareholders for the first quarter of 2025 increased $1.6 million, or 26.5%, to $7.8 million, compared to $6.1 million for the same period last year. Earnings per share were $0.66 per basic common share and $0.65 per diluted common share for the first quarter of 2025, compared to $0.51 per basic common share and $0.51 per diluted common share for the same period last year. The increase was primarily due to an increase in net interest income, partially offset by an increase in provision for credit losses, and a decrease in non-interest income.
Current wording
Net Income: Our net income available to common shareholders for the three months ended June, 30, 2025 increased $1.8 million, or 28.3%, to $8.3 million, compared to $6.5 million for the three months ended June 30, 2024. Earnings per share were $0.70 per basic common share and $0.69 per diluted common share for the three months ended June 30, 2025, compared to $0.54 per basic common share and $0.53 per diluted common share for the same period last year. The increase was primarily due to an increase in net interest income, partially offset by an increase in provision for credit losses, a decrease in non-interest income, and an increase in non-interest expense.
Previous wording
Net Interest Income: Our net interest income was $16.6 million for the first quarter of 2025 compared to $14.1 million for the first quarter of 2024, an increase of $2.5 million, or 18.2%. Net interest income increased during the three months ended March 31, 2025, primarily due to an increase in interest and fees on loans and an increase in interest on deposits with banks, partially offset by an increase in interest expense on deposits and borrowings. Interest income increased $4.4 million, or 14.8%, during the three months ended March 31, 2025 as compared to the same period in the prior year. The increase in interest income was primarily due to an increase of $3.4 million in interest and fees on loans, due to higher loan balances and market interest rates. Interest from deposits with banks increased $0.9 million during the three months ended March 31, 2025 as compared to the same period in the prior year, primarily due to higher cash balances held at the Federal Reserve Bank ("FRB"). The increase in interest income was partially offset by an increase in interest expense during the three months ended March 31, 2025 of $1.8 million, or 11.8%, primarily due to an increase in market interest rates on deposits and the overall mix of deposits of $1.7 million.
Current wording
Net Interest Income: Our net interest income was $17.9 million for the second quarter of 2025 compared to $14.3 million for the second quarter of 2024, an increase of $3.6 million, or 24.9%. Net interest income increased during the three months ended June 30, 2025, primarily due to an increase in interest and fees on loans and an increase in interest on deposits with banks, partially offset by an increase in interest expense on deposits and borrowings. Interest income increased $4.8 million, or 16.0%, during the three months ended June 30, 2025 as compared to the same period in the prior year. The increase in interest income was primarily due to an increase of $4.0 million in interest and fees on loans, due to higher loan balances and market interest rates. Interest from deposits with banks increased $0.8 million during the three months ended June 30, 2025 as compared to the same period in the prior year, primarily due to higher cash balances held at the Federal Reserve Bank ("FRB"). The increase in interest income was partially offset by an increase in interest expense during the three months ended June 30, 2025 of $1.3 million, or 8.0%, primarily due to an increase in market interest rates on deposits and the overall mix of deposits of $1.5 million.
Previous wording
Provision for credit losses: For the three months ended March 31, 2025, the provision for credit losses was $0.6 million, compared to $0.2 million for the three months ended March 31, 2024, an increase of $0.4 million. The increase in the provision for credit losses for the three months ended March 31, 2025, was primarily due to an increase in the commercial non-owner occupied and commercial owner occupied loan portfolio's balances from December 31, 2024.
Current wording
Provision for credit losses: For the three months ended June 30, 2025, the provision for credit losses was $1.0 million, compared to $0.5 million for the three months ended June 30, 2024, an increase of $0.5 million. The increase in the provision for credit losses for the three months ended June 30, 2025, was primarily due to an increase in the construction loan and the commercial non-owner occupied loan portfolios, partially offset by a decrease in the commercial owner occupied loan portfolio and a decrease in the residential - 1 to 4 family investment loan portfolio balances from March 31, 2025.
Previous wording
Non-interest Expense: Our non-interest expense was unchanged at $6.5 million for the three months ended March 31, 2025, from the three months ended March 31, 2024.
Current wording
Non-interest Expense: Our non-interest expense increased $0.4 million, or 7.1%, for the three months ended June 30, 2025, from the three months ended June 30, 2024, to $6.7 million. The increase was primarily driven by an increase in compensation and benefits of $0.2 million, an increase in data processing expense of $0.2 million, and an increase in professional services of $0.1 million, for the three months ended June 30, 2025 compared to the same period in 2024, partially offset by a decrease in other real estate owned ("OREO") expense of $0.1 million.
Previous wording
Income Tax: Income tax expense was $2.5 million on income before taxes of $10.3 million for the three months ended March 31, 2025, resulting in an effective tax rate of 24.5%, compared to income tax expense of $2.2 million on income before taxes of $8.4 million for the same period of 2024, resulting in an effective tax rate of 26.6%.
Current wording
Income Tax: Income tax expense was $2.7 million on income before taxes of $11.0 million for the three months ended June 30, 2025, resulting in an effective tax rate of 24.9%, compared to income tax expense of $2.3 million on income before taxes of $8.8 million for the same period of 2024, resulting in an effective tax rate of 26.6%.
Previous wording
Non-interest Income: Our non-interest income was $0.8 million for the three months ended March 31, 2025, a decrease of $0.2 million, compared to $1.1 million for the three months ended March 31, 2024. The decrease is primarily attributable to a decrease in service fees on deposit accounts of $0.1 million due to a decrease in cannabis deposit fee income, and a decrease in other non-interest income of $0.1 million.
Current wording
Non-interest Income: Our non-interest income was $1.6 million for the six months ended June 30, 2025, a decrease of $0.6 million, compared to $2.3 million for the six months ended June 30, 2024. The decrease was primarily driven by a decrease in other income of $0.4 million, and a decrease in service fees on deposit accounts of $0.1 million.
Previous wording
At March 31, 2025, the Company’s total assets were $2.14 billion, a decrease of $0.4 million, or 0.02%, from December 31, 2024. The decrease in total assets was primarily attributable to a decrease in cash and cash equivalents of $12.5 million, a decrease in FHLBNY restricted stock of $1.8 million, and a decrease in other assets of $1.0 million, partially offset by an increase in loans receivable of $15.0 million. Cash and cash equivalents decreased $12.5 million, or 5.6%, primarily due to the increase in loans and a decrease in FHLBNY borrowings of $40.0 million, partially offset by an increase in deposits of $35.6 million. FHLBNY restricted stock decreased $1.8 million, or 21.0%, due to the repayment of $40.0 million of FHLBNY advances. Other assets decreased $1.0 million due to a decrease in prepaid expenses. Loans increased $15.0 million, primarily due to increases in the commercial owner occupied and commercial non-owner occupied portfolio's balances, partially offset by a decrease in the construction portfolio balance.
Current wording
At June 30, 2025, the Company’s total assets were $2.17 billion, an increase of $28.1 million, or 1.30%, from December 31, 2024. The increase in total assets was primarily attributable to an increase in net loans of $66.6 million, partially offset by a decrease in cash and cash equivalents of $37.3 million. Cash and cash equivalents decreased $37.3 million, or 16.8%, primarily due to the increase in loans and a decrease in FHLBNY borrowings of $45.0 million, partially offset by an increase in deposits of $62.4 million. Loans increased $66.6 million, or 3.6%, primarily due to increases in the commercial non-owner occupied and construction loan portfolio's balances, partially offset by a decrease in the residential - 1 to 4 family investment loan portfolio balance. FHLBNY restricted stock decreased $1.9 million, or 22.4%, due to the repayment of $45.0 million of FHLBNY advances. Other assets increased $1.5 million due to an increase in prepaid expenses.
Previous wording
Total liabilities were $1.84 billion at March 31, 2025. This represented a $6.3 million, or 0.3%, decrease, from $1.84 billion at December 31, 2024. The decrease in total liabilities was primarily due to a decrease in FHLBNY borrowings of $40.0 million, or 27.6%, to $105.0 million, partially offset by an increase in deposits of $35.6 million, or 2.2%, to $1.67 billion at March 31, 2025. The decrease in borrowings was attributed to the repayment of $40.0 million in FHLBNY advances, while the increase in deposits was primarily due to an increase in money market deposits of $128.4 million, partially offset by a decrease in brokered time deposits of $88.9 million.
Current wording
Total liabilities were $1.86 billion at June 30, 2025. This represented a $16.0 million, or 0.9%, increase, from $1.84 billion at December 31, 2024. The increase in total liabilities was primarily due to an increase in total deposits of $62.4 million, or 3.8%, to $1.69 billion at June 30, 2025, partially offset by a decrease in FHLBNY borrowings of $45.0 million, or 31.0%, to $100.0 million. The increase in deposits was due to an increase in money market balances of $199.6 million, partially offset by a decrease in brokered CD balances of $124.1 million. The decrease in borrowings was attributed to the repayment of $45.0 million in FHLBNY advances.
Previous wording
Total equity was $305.9 million and $300.1 million at March 31, 2025 and December 31, 2024, respectively, an increase of $5.9 million from December 31, 2024. The increase was primarily due to the retention of earnings, partially offset by the payment of $2.1 million of cash dividends.
Current wording
Total equity was $312.2 million and $300.1 million at June 30, 2025 and December 31, 2024, respectively, an increase of $12.1 million from December 31, 2024. The increase was primarily due to the retention of earnings, partially offset by the payment of $4.2 million of cash dividends.
Previous wording
Cash and cash equivalents decreased $12.5 million to $209.0 million at March 31, 2025 from $221.5 million at December 31, 2024, a decrease of 5.6%. The decrease was primarily due to an increase in loans, and a decrease in FHLBNY borrowings, partially offset by an increase in deposits.
Current wording
Cash and cash equivalents decreased $37.3 million to $184.3 million at June 30, 2025 from $221.5 million at December 31, 2024, a decrease of 16.8%. The decrease was primarily due to an increase in loans, and a decrease in FHLBNY borrowings, partially offset by an increase in deposits.
Previous wording
Total investment securities decreased to $14.3 million at March 31, 2025, from $14.8 million at December 31, 2024, a decrease of $0.4 million or 2.8%. The decrease was attributed to normal pay downs of securities. 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 $14.0 million at June 30, 2025, from $14.8 million at December 31, 2024, a decrease of $0.8 million or 5.1%. The decrease was attributed to normal pay downs of securities. 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 $1.88 billion at March 31, 2025, from $1.87 billion at December 31, 2024, an increase of $15.0 million, or 0.8%. The increase was primarily due to increases in the commercial-owner occupied, and commercial non-owner occupied, loan portfolios, partially offset by a decrease in the construction loan portfolio. Loans receivable as of March 31, 2025 and December 31, 2024, consisted of the following:
Current wording
Loans receivable: Loans receivable increased to $1.93 billion at June 30, 2025, from $1.87 billion at December 31, 2024, an increase of $66.6 million, or 3.6%. The increase was primarily due to increases in the commercial non-owner occupied, and construction loan portfolios, partially offset by a decrease in the residential - 1 to 4 family investment loan portfolio. Loans receivable as of June 30, 2025 and December 31, 2024, consisted of the following:
Previous wording
At March 31, 2025, total deposits increased to $1.67 billion from $1.63 billion at December 31, 2024, an increase of $35.6 million, or 2.2%. The increase in deposits was primarily due to an increase in money market deposits of $128.4 million, partially offset by a decrease in brokered time deposits of $88.9 million The increase in our money market deposits was primarily due to the increase of $106.7 million in our premier money market account balance, and an increase of $28.3 million in our municipal money market account balance. The decrease in the brokered time deposit balance is primarily attributed to $75.0 million in Wells Fargo brokered CD maturities, and $13.2 million in CDARs brokered CD maturities, respectively. The increase in the estimated uninsured deposits balance is mainly due to an increase in our cannabis and municipal deposit balances.
Current wording
At June 30, 2025, total deposits increased to $1.69 billion from $1.63 billion at December 31, 2024, an increase of $62.4 million, or 3.8%. The increase in deposits was primarily due to an increase in money market deposits of $199.6 million, partially offset by a decrease in brokered time deposits of $121.7 million The increase in our money market deposits was primarily due to the increase of $172.8 million in our premier money market account balance, and an increase of $33.4 million in our municipal money market account balance. The decrease in the brokered time deposit balance is primarily attributable to $110.1 million in brokered CD maturities, and $13.2 million in CDARs brokered CD maturities, respectively. The increase in the estimated uninsured deposits balance is mainly due to an increase in our cannabis and municipal deposit balances.
Previous wording
Total borrowings were $148.3 million at March 31, 2025 and $188.3 million at December 31, 2024. The decrease in borrowings is due to a decrease of $40.0 million in FHLBNY advances. At March 31, 2025, $85.0 million of the outstanding FHLBNY advances have short-term maturities.
Current wording
Total borrowings were $143.4 million at June 30, 2025 and $188.3 million at December 31, 2024. The decrease in borrowings is due to a decrease of $45.0 million in FHLBNY advances. At June 30, 2025, $80.0 million of the outstanding FHLBNY advances have short-term maturities.
Previous wording
Total equity increased to $305.9 million at March 31, 2025 from $300.1 million at December 31, 2024, an increase of $5.9 million, or 2.0%, primarily due to the retention of earnings from the period, partially offset by the payment of $2.1 million of cash dividends.
Current wording
Total equity increased to $312.2 million at June 30, 2025 from $300.1 million at December 31, 2024, an increase of $12.1 million, or 4.0%, primarily due to the retention of earnings from the period, partially offset by the payment of $4.2 million of cash dividends.
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 March 31, 2025, our cash position was $209.0 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 June 30, 2025, our cash position was $184.3 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 primarily utilizes brokered relationships with Wells Fargo, Piper Sandler, and Stonecastle. As of March 31, 2025, the Company had $121.6 million sourced from these relationships. For an additional source of brokered liquidity, the Bank joined the IntraFi Financial Network. 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 March 31, 2025, the Company did not have any deposits sourced from IntraFi. 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 March 31, 2025, the Company had lines of credit with the FHLBNY of $685.0 million, of which $105.0 million was outstanding, and an additional $40.0 million from a letter of credit for securing public funds. The remaining borrowing capacity was $540.0 million at March 31, 2025. As of March 31, 2025, the Company had a borrowing capacity through the FRB discount window of $283.0 million. There were no balances outstanding with the FRB as of March 31, 2025.
Current wording
We also use brokered deposits as a funding source. The Bank primarily utilizes brokered relationships with Wells Fargo, Piper Sandler, and Stonecastle. As of June 30, 2025, the Company had $86.8 million sourced from these relationships. For an additional source of brokered liquidity, the Bank joined the IntraFi Financial Network. 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, 2025, the Company did not have any deposits sourced from IntraFi. 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 June 30, 2025, the Company had lines of credit with the FHLBNY of $645.1 million, of which $100.0 million was outstanding, and an additional $60.0 million from a letter of credit for securing public funds. The remaining borrowing capacity was $485.1 million at June 30, 2025. As of June 30, 2025, the Company had a borrowing capacity through the FRB discount window of $337.1 million. There were no balances outstanding with the FRB as of June 30, 2025.
Previous wording
We had outstanding loan commitments of $137.5 million at March 31, 2025. 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 $161.9 million at June 30, 2025. 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 three months ended March 31, 2025 and 2024.
Current wording
The following is a discussion of our cash flows for the six months ended June 30, 2025 and 2024.
Previous wording
Cash provided by operating activities was $7.0 million in the three months ended March 31, 2025, compared to $8.4 million for the same period in the prior year. The decrease in operating cash flow was primarily due to the decrease in accrued interest payable and other accrued liabilities, partially offset by a decrease in accrued interest receivable and other assets.
Current wording
Cash provided by operating activities was $13.8 million during the six months ended June 30, 2025, compared to $17.2 million for the same period in the prior year. The decrease in operating cash flow was primarily due to the increase in accrued interest receivable and other assets, and the decrease in accrued interest payable and other accrued liabilities.
Previous wording
Cash used in investing activities was $13.1 million in the three months ended March 31, 2025, compared to cash provided from investing activities of $3.6 million in the same period last year. The increase in cash used in the investing activities during the three months ended March 31, 2025, was primarily due to the increase in cash outflow from the origination of loans.
Current wording
Cash used in investing activities was $64.2 million during the six months ended June 30, 2025, compared to cash used in investing activities of $19.3 million in the same period last year. The increase in cash used in the investing activities during the six months ended June 30, 2025, was primarily due to the increase in cash outflow from the origination of loans.
Previous wording
Cash used in financing activities was $6.4 million in the three months ended March 31, 2025, compared to cash used in financing activities of $21.2 million in the same period last year. The decrease in cash provided by financing activities during the three months ended March 31, 2025, was primarily due to an increase in noninterest-bearing deposits, partially offset by lower increase in interest-bearing deposits, and the net decrease in FHLBNY borrowings.
Current wording
Cash provided by financing activities was $13.2 million during the six months ended June 30, 2025, compared to cash used in financing activities of $10.6 million in the same period last year. The increase in cash provided by financing activities during the six months ended June 30, 2025, was primarily due to an increase in interest bearing and noninterest-bearing deposits, partially offset by a net decrease in FHLBNY 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.
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 June 30, 2025, from December 31, 2024, primarily from the Company’s net income of $16.1 million for the period, net of common and preferred stock dividends of $4.2 million.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report — wording carried from elsewhere
Net Interest Income: Our net interest income was $34.5 million for the six months ended June 30, 2025 compared to $28.4 million for the six months ended June 30, 2024, an increase of $6.1 million, or 21.6%. Net interest income increased during the six months ended June 30, 2025, primarily due to an increase in interest and fees on loans and an increase in interest on deposits with banks, partially offset by an increase in interest expense on deposits and borrowings. Interest income increased $9.2 million, or 15.4%, during the six months ended June 30, 2025 as compared to the same period in the prior year. The increase in interest income was primarily due to an increase of $7.4 million in interest and fees on loans, due to higher loan balances and market interest rates. Interest from deposits with banks increased $1.8 million during the six months ended June 30, 2025 as compared to the same period in the prior year, primarily due to higher cash balances held at the Federal Reserve Bank ("FRB"). The increase in interest income was partially offset by an increase in interest expense during the six months ended June 30, 2025 of $3.1 million, or 9.9%, primarily due to an increase in market interest rates on deposits and the overall mix of deposits of $3.2 million.
Current report — wording carried from elsewhere
Income Tax: Income tax expense was $5.3 million on income before taxes of $21.3 million for the six months ended June 30, 2025, resulting in an effective tax rate of 24.7%, compared to income tax expense of $4.6 million on income before taxes of $17.2 million for the same period of 2024, resulting in an effective tax rate of 26.6%.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Total equity increased $5.9 million at March 31, 2025, from December 31, 2024, primarily from the Company’s net income of $7.8 million for the period, net of common and preferred stock dividends of $2.1 million.