Orange County Bancorp Inc DE
For the period ended Jun 30, 2024. Filed Aug 12, 2024.
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, 2024 · Filed Aug 12, 2024
OBT$39.50-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-15.
0001558370-24-008264
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-12.
0001558370-24-011803
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 98 previous paragraphs and 108 current paragraphs.
52 unchanged; 42 reworded; 12 added; 3 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 51 previous and 59 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
during the first six months of 2024 resulting from the increase in non-accrual loans, primarily the one non-accrual commercial real estate loan participation described above.
Current report
General. Net income decreased $873 thousand, or 9.6%, to $8.2 million for the three months ended June 30, 2024 from $9.1 million for the three months ended June 30, 2023. The decrease was driven primarily by an increase of $2.0 million related to the provision for credit losses and an increase of $1.0 million in noninterest expense, partially offset by an increase in net interest income of $1.5 million during the second quarter of 2024 as compared to the same quarter in 2023. Net income for the six months ended June 30, 2024 was $17.5 million, as compared to $12.3 million for the same period in 2023. The overall increase was driven primarily by increased net interest income of $2.0 million and a reduction in the provision for credit losses of $6.9 million associated with the recovery of Signature Bank subordinated debt which was written off during 2023 and recovered during the six month period ended June 30, 2024 as compared to the same prior year period.
Current report
Interest income increased $7.5 million, or 13.3%, for the six months ended June 30, 2024 reaching $63.6 million from $56.1 million for the six months ended June 30, 2023. This increase was driven by a $47.9 million increase in the balance of average interest-earning assets between the two periods. Within the average balance of interest-earning assets, the average balance of loans receivable (net of PPP loans) grew $78.9 million, or 4.8%, between the six months ended June 30, 2024 and June 30, 2023. In addition, the average yield of interest-earning assets increased by 51 basis points from 4.87% for the six months ended June 30, 2023 to 5.38% for the six months ended June 30, 2024 as a result of the higher interest rate environment.
Current report
For the six months ended June 30, 2024, interest income on loans increased by $6.7 million, or 14.6%, reaching $52.4 million as compared to $45.7 million for the six months ended June 30, 2023. The increase in interest income on loans represents the impact of growth in average loan balances (net of PPP loans) of $78.9 million between the six months ended June 30, 2023 and June 30, 2024. The increase in average loans outstanding was due to an increase in the commercial and industrial segment of the loan portfolio as well as stability in commercial real estate loan balances, including commercial real estate construction. This increase in production was also coupled with an increase in average yield on loans, excluding PPP loans, for the six month periods from 5.57% in 2023 to 6.06% in 2024. The increase in the average yield on loans was driven by the effect of the higher interest rate environment during 2023 and the first half of 2024 and management’s continued focus on disciplined loan pricing.
Current report
For the six months ended June 30, 2024, interest income on securities decreased by $313 thousand, or 4.4%, to $6.8 million during the period from $7.1 million during the six months ended June 30, 2023. The decrease in interest income on securities was due to a decrease in the average balance of securities during the current period. The average balance of securities decreased by $48.8 million, or 9.3%, to $474.4 million for the six months ended June 30, 2024 compared to $523.3 million for the six months ended June 30, 2023 due to certain maturities as well as a result of the Signature Bank subordinated debt writeoff during 2023. The average yield on investment securities increased by 13 basis points overall from 2.74% for the six months ended June 30, 2023 to 2.87% for the six months ended June 30, 2024. The increase in the average yield on securities was primarily related to the maturity of lower yielding securities during 2023 and the first half of 2024.
Current report
Interest expense increased $5.5 million, or 44.5%, to $17.9 million for the six months ended June 30, 2024 from $12.4 million for the six months ended June 30, 2023. The increase in interest expense reflects the higher interest rate environment and the continuing effect on deposit and funding costs during the period. The average rate paid on interest-bearing liabilities increased 61 basis points to 2.23% during the six months ended June 30, 2024 as compared to 1.62% for the six month period ended June 30, 2023. The average balance of interest-bearing liabilities increased by $62.9 million, or 4.1%, to $1.6 billion for the six months ended June 30, 2024 as compared to $1.5 billion for the six months ended June 30, 2023.
Current report
During the six months ended June 30, 2024, interest expense on interest-bearing deposits increased by $6.7 million, or 89.8%, to $14.3 million during the six months ended June 30, 2024 from $7.5 million during the six months ended June 30, 2023. The increase in interest expense on interest-bearing deposits for the six month period ended June 30, 2024 as compared to the same prior year period represents the effect of the higher interest rate environment on the average cost of deposits coupled with higher average balances of interest bearing deposits. The average cost of interest-bearing deposits increased 83 basis points to 1.96% for the six months ended June 30, 2024 as compared to 1.13% for the six months ended June 30, 2023. The average balance of interest-bearing deposits increased by $117.2 million, or 8.7%, to $1.5 billion for the six months ended June 30, 2024 as compared to $1.4 billion for the six months ended June 30, 2023 primarily as a result of the increases in the average balances of certificates of deposit, interest-bearing demand deposits and money market accounts.
Current report
The interest expense related to FHLB and other borrowing for the first six months of 2024 decreased to $3.1 million as compared to $4.4 million for the first six months of 2023. For the six months ended June 30, 2024, average FHLB and other borrowings decreased to $122.2 million with an average cost of 5.15% compared to $176.6 million of average FHLB and other borrowings with an average cost of 5.01% for the same period in 2023. The decrease in average borrowings was the direct result of paydowns driven by increased deposits and less use of cash during the current period.
Current report
For the six months ended June 30, 2024, net interest income increased $2.0 million, or 4.5%, to $45.7 million from $43.7 million for the six months ended June 30, 2023 due primarily to an increase in net interest margin for the current period. The net interest margin increased seven basis points to 3.87% for the six months ended June 30, 2024 from 3.80% for the six months ended June 30, 2023. Net interest rate spread decreased by 10 basis points to 3.15% for the six months ended June 30, 2024 from 3.25% for the six months ended June 30, 2023.
Current report
For the six months ended June 30, 2024, the provision for credit losses totaled $570 thousand as compared to $6.6 million for the six months ended June 30, 2023. The provision for the six months ended June 30, 2024 reflected the recognition of a $1.9 million recovery associated with the 2023 write off of the Signature Bank corporate security in the amount of $5.0 million made during the six months ended June 30, 2023 as well as the additional provision related to a nonaccrual commercial real estate loan participation identified during the second quarter of 2024. Total participation and syndicated loans represent approximately 10.7% of total loans at June 30, 2024.
Current report
For the six months ended June 30, 2024, noninterest income increased by $1.0 million, or 16.1%, to $7.5 million as compared to $6.5 million for the six months ended June 30, 2023. Our Wealth Management division revenues increased and represented a 18.7% growth reaching $5.8 million for the six month period ended June 30, 2024 from $4.9 million for the six month period ended June 30, 2023 as a result of continued growth in asset values during the current period.
Current report
Non-interest expense was $30.8 million for the first half of 2024, reflecting an increase of approximately $2.3 million, or 8.2%, as compared to $28.5 million for the same period in 2023. The increase in non-interest expense for the six month period was also due to continued investment in overall Company growth, primarily, increases in salaries and benefit costs, deposit insurance, and information technology. For the six months ended June 30, 2024, our efficiency ratio was 57.9% as compared to 56.7% for the same period in 2023.
Removed paragraphs (3)
Previous report
during 2023 resulting from the increase in non-accrual loans and reserves applied against a portion of those loans during a period where the overall loan portfolio decreased.
Previous report
General. Net income increased $6.1 million, or 187.6%, to $9.3 million for the three months ended March 31, 2024 from $3.2 million for the three months ended March 31, 2023. The increase was primarily driven by a net credit tothe provision for credit losses associated with the investment portfolio as a result of the recovery of $1.9 million related to previously written-off Signature Bank subordinated debt during the current quarter as compared to the same quarter in 2023.
Previous report
The interest expense related to borrowings in the first quarter of 2024 reached approximately $2.3 million in cost and reflected an average rate of 5.39% as compared to $2.1 million in cost and an average rate of 4.80% for the same period in 2023. Additionally, the first quarter 2024 included average FHLB and other borrowings of $167.5 million compared to $177.9 million in the same quarter of 2023. Although the level of borrowings represents the continued strategic focus to maintain higher cash balances in response to the
Reworded paragraphs (42)
Previous wording
The following discussion and analysis of our financial condition and results of operations at March 31, 2024 and December 31, 2023 and for the three months ended March 31, 2024 and 2023 should be read in conjunction with our audited consolidated financial statements and the accompanying notes in our Annual Report on Form 10-K for the year ended December 31, 2023. This discussion and analysis contains forward-looking statements that are subject to certain risks and uncertainties and are based on certain assumptions that we believe are reasonable but may prove to be inaccurate. Certain risks, uncertainties and other factors, including those set forth under “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in this Quarterly Report on Form 10-Q, may cause actual results to differ materially from those projected results discussed in the forward-looking statements appearing in this discussion and analysis. We assume no obligation to update any of these forward-looking statements.
Current wording
The following discussion and analysis of our financial condition and results of operations at June 30, 2024 and December 31, 2023 and for the three months and six months ended June 30, 2024 and 2023 should be read in conjunction with our audited consolidated financial statements and the accompanying notes in our Annual Report on Form 10-K for the year ended December 31, 2023. This discussion and analysis contains forward-looking statements that are subject to certain risks and uncertainties and are based on certain assumptions that we believe are reasonable but may prove to be inaccurate. Certain risks, uncertainties and other factors, including those set forth under “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in this Quarterly Report on Form 10-Q, may cause actual results to differ materially from those projected results discussed in the forward-looking statements appearing in this discussion and analysis. We assume no obligation to update any of these forward-looking statements.
Previous wording
We are a bank holding company headquartered in Middletown, New York and registered under the Bank Holding Company Act. Through our wholly owned subsidiaries, Orange Bank & Trust Company and Hudson Valley Investment Advisors, Inc., we offer full-service commercial and consumer banking products and services and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments and affluent individuals in the Lower Hudson Valley region, the New York metropolitan area and nearby markets in Connecticut and New Jersey. By combining the high-touch service and relationship-based focus of a community bank with the extensive suite of financial products and services offered by our larger competitors, we believe we can capitalize on the substantial growth opportunities available in our market areas. We also offer a variety of deposit accounts to businesses and consumers, including checking accounts and a full line of municipal banking accounts through our business banking platform. These activities, together with our 16 offices and one loan production office, generate a stable source of low- cost core deposits and a diverse loan portfolio with attractive risk-adjusted yields. We also offer private banking services through Orange Bank & Trust Private Banking, a division of Orange Bank & Trust Company, and provide trust and wealth management services through Orange Bank & Trust Company’s trust services department and HVIA, which combined had $1.7 billion in assets under management at March 31, 2024. As of March 31, 2024, our assets, loans, deposits and stockholders’ equity totaled $2.5 billion, $1.7 billion, $2.2 billion and $168.7 million, respectively.
Current wording
We are a bank holding company headquartered in Middletown, New York and registered under the Bank Holding Company Act. Through our wholly owned subsidiaries, Orange Bank & Trust Company and Hudson Valley Investment Advisors, Inc., we offer full-service commercial and consumer banking products and services and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments and affluent individuals in the Lower Hudson Valley region, the New York metropolitan area and nearby markets in Connecticut and New Jersey. By combining the high-touch service and relationship-based focus of a community bank with the extensive suite of financial products and services offered by our larger competitors, we believe we can capitalize on the substantial growth opportunities available in our market areas. We also offer a variety of deposit accounts to businesses and consumers, including checking accounts and a full line of municipal banking accounts through our business banking platform. These activities, together with our 16 offices and one loan production office, generate a stable source of low- cost core deposits and a diverse loan portfolio with attractive risk-adjusted yields. We also offer private banking services through Orange Bank & Trust Private Banking, a division of Orange Bank & Trust Company, and provide trust and wealth management services through Orange Bank & Trust Company’s trust services department and HVIA, which combined had $1.7 billion in assets under management at June 30, 2024. As of June 30, 2024, our assets, loans, deposits and stockholders’ equity totaled $2.5 billion, $1.7 billion, $2.2 billion and $177.5 million, respectively.
Previous wording
Allowance for Credit Losses. Management believes that the determination of the allowance for credit losses involves a high degree of complexity and requires management to make difficult and subjective judgments, which often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could materially impact the results of operations for Orange County Bancorp. A summary of our accounting policies, included the Allowance for Credit Losses, is included in the Company’s Annual Report on Form 10-K. There were no significant changes to the critical accounting estimates during the three months ended March 31, 2024 as disclosed in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 29, 2024.
Current wording
Allowance for Credit Losses. Management believes that the determination of the allowance for credit losses involves a high degree of complexity and requires management to make difficult and subjective judgments, which often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could materially impact the results of operations for Orange County Bancorp. A summary of our accounting policies, included the Allowance for Credit Losses, is included in the Company’s Annual Report on Form 10-K. There were no significant changes to the critical accounting estimates during the three months and six months ended June 30, 2024 as disclosed in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 29, 2024.
Previous wording
Assets. Our total assets were $2.5 billion at March 31, 2024, a decrease of $33.0 million, or 1.3%, from December 31, 2023. The decrease was primarily driven by decreases of $14.8 million in net loans, $13.9 million in investment securities, available for sale and $2.7 million in cash and due from banks.
Current wording
Assets. Our total assets were $2.5 billion at June 30, 2024, a decrease of $4.3 million, or 0.2%, from December 31, 2023. The decrease was primarily driven by decreases of $26.9 million in investment securities, available for sale, and $15.9 million in net loans offset by the increase of $42.3 million in cash and due from banks.
Previous wording
Cash and due from banks. Cash and due from banks decreased $2.7 million, or 1.8%, to $144.7 million at March 31, 2024, from $147.4 million at December 31, 2023. The slight decrease was mainly the result of management’s focus on using deposit growth to reduce the level of borrowings while still maintaining a strong liquidity position.
Current wording
Cash and due from banks. Cash and due from banks increased $42.3 million, or 28.7%, to $189.7 million at June 30, 2024, from $147.4 million at December 31, 2023. The increase was mainly the result of management’s focus on using deposit growth during the period to build a strong liquidity position.
Previous wording
Net loans decreased $14.8 million, or 0.86%, to $1.7 billion at March 31, 2024 from December 31, 2023 primarily due to repayments of commercial and industrial loans during the first three months of 2024. Commercial and industrial loans experienced a decrease of $13.5 million, or 4.9%, to $259.8 million at March 31, 2024 from $273.3 million at December 31, 2023. Commercial real estate loans increased $2.5 million, or 0.2%, to $1.3 billion at March 31, 2024. Residential real estate loans grew $602 thousand, or 0.77%, to $78.9 million at March 31, 2024 from $78.3 million at December 31, 2023. Consumer loans decreased $2.1 million, or 5.8%, to $34.4 million at March 31, 2024 from $36.6 million at December 31, 2023. The overall diversification within the commercial real estate portfolio provides stability while remaining focused on loan originations to new and existing customers during the first three months of 2024 as well as our continued commitment to geographic expansion in our market area.
Current wording
Net loans decreased $15.9 million, or 0.9%, to $1.7 billion at June 30, 2024 from December 31, 2023 primarily due to repayments of commercial and industrial loans during the first six months of 2024. Commercial and industrial loans experienced a decrease of $12.5 million, or 4.6%, to $260.9 million at June 30, 2024 from $273.3 million at December 31, 2023. Commercial real estate loans decreased slightly by $1.2 million, or 0.1%, to $1.3 billion at June 30, 2024. Residential real estate loans grew $3.2 million, or 4.1%, to $81.6 million at June 30, 2024 from $78.3 million at December 31, 2023. Consumer loans decreased $3.5 million, or 9.5%, to $33.1 million at June 30, 2024 from $36.6 million at December 31, 2023. The overall diversification within the commercial real estate portfolio provides stability while we remain focused on loan originations to new and existing customers during the six months ended June 30, 2024 as well as our continued commitment to geographic expansion in our market area.
Previous wording
The following table sets forth information regarding our non-performing assets. Non-performing loans aggregated approximately $5.8 million at March 31, 2024 as compared to $4.4 million at December 31, 2023.
Current wording
The following table sets forth information regarding our non-performing assets. Non-performing loans aggregated approximately $16.0 million at June 30, 2024 as compared to $4.4 million at December 31, 2023.
Previous wording
Non-performing loans at March 31, 2024 totaled $5.8 million and consisted primarily of $2.7 million of commercial real estate loans, $2.5 million of commercial and industrial loans, and $589 thousand of residential real estate loans. The increase in non-performing loans was primarily the result of a $2.0 million increase related to non-accrual commercial and industrial loans which experienced payment delays exceeding 90 days during the period. We had no other real estate owned at March 31, 2024 and December 31, 2023, respectively.
Current wording
Non-performing loans at June 30, 2024 totaled $16.0 million and consisted of $15.0 million of commercial real estate loans, $445 thousand of commercial and industrial loans, and $588 thousand of residential real estate loans. The increase in non-performing loans was primarily the result of the addition of one non-accrual commercial real estate loan participation totaling $14.7 million which is expected to become greater than 90 days delinquent. We had no other real estate owned at June 30, 2024 and December 31, 2023, respectively.
Previous wording
Non-performing assets increased $1.4 million, or 30.5%, to $5.8 million, or 0.24% of total assets, at March 31, 2024 from $4.4 million, or 0.18% of total assets, at December 31, 2023. The increase in non-performing assets at March 31, 2024, compared to December 31, 2023 was primarily driven by an increase of $2.0 million related to non-accrual commercial and industrial loans offset by reductions in the level of non-performing loans related to the commercial real estate and residential real estate categories.
Current wording
Non-performing assets increased $11.6 million, or 261.2%, to $16.0 million, or 0.64% of total assets, at June 30, 2024 from $4.4 million, or 0.18% of total assets, at December 31, 2023. The increase in non-performing assets at June 30, 2024, compared to December 31, 2023 was primarily driven by an increase of $12.3 million in non-accrual commercial real estate loans offset by reductions in the level of non-performing loans in the residential real estate category.
Previous wording
From time to time, as part of our loss mitigation strategy, we may renegotiate loan terms based on the economic and legal reasons related to the borrower’s financial difficulties. There were no loans modified due to financial difficulties during the three months ended March 31, 2024.
Current wording
From time to time, as part of our loss mitigation strategy, we may renegotiate loan terms based on the economic and legal reasons related to the borrower’s financial difficulties. There were no loans modified due to financial difficulties during the three months and six months ended June 30, 2024.
Previous wording
On the basis of management’s review of our assets, we have classified $12.1 million of our assets at March 31, 2024 as substandard compared to $19.6 million at December 31, 2023, due to certain loan payoffs recorded during the current three month period. There were no doubtful assets as of March 31, 2024 and December 31, 2023. We designated $33.3 million of our assets at March 31, 2024 as special mention compared to $32.8 million designated as special mention at December 31, 2023.
Current wording
On the basis of management’s review of our assets, we have classified $24.6 million of our assets at June 30, 2024 as substandard compared to $19.6 million at December 31, 2023, due to certain trends and increased delinquencies within those loans. There were no doubtful assets as of June 30, 2024 and December 31, 2023. We designated $35.2 million of our assets at June 30, 2024 as special mention compared to $32.8 million designated as special mention at December 31, 2023.
Previous wording
The allowance for credit losses increased by $747 thousand, or 3.0%, to $25.5 million, or 1.47% of total loans at March 31, 2024, from $24.7 million, or 1.49% of total loans at March 31, 2023. The increase in the allowance was primarily due to increased provision
Current wording
The allowance for credit losses increased by $3.0 million, or 11.9%, to $27.8 million, or 1.60% of total loans at June 30, 2024, from $24.8 million, or 1.45% of total loans at June 30, 2023. The increase in the allowance was primarily due to increased provision
Previous wording
Available for sale securities decreased $13.9 million, or 2.8%, to $476.1 million at March 31, 2024 from $489.9 million at December 31, 2023, due primarily to limited purchases as well as continued declines for all investment categories due to normal amortization and cash flow during the current three month period. During the first quarter of 2024, the Company sold and recorded a recovery of $1.9 million related to Signature Bank subordinated debt which was written-off during 2023. As part of the treatment, the Company evaluated the securities portfolio for an allowance and determined it was not necessary. Accordingly, the recovery resulted in a net credit to the ACL.
Current wording
Available for sale securities decreased $26.9 million, or 5.5%, to $463.1 million at June 30, 2024 from $489.9 million at December 31, 2023, due primarily to limited purchases as well as continued declines for all investment categories due to normal amortization and cash flow during the six month period ended June 30, 2024. During the first quarter of 2024, the Company sold and recorded a recovery of $1.9 million related to Signature Bank subordinated debt which was written-off during 2023. As part of the treatment, the Company evaluated the securities portfolio for an allowance and determined it was not necessary. Accordingly, the recovery resulted in a net credit to the ACL.
Previous wording
Total deposits increased $110.7 million, or 5.4%, to $2.1 billion at March 31, 2024 from December 31, 2023. Certificates of deposit increased by $22.1 million, or 10.0%, mainly from increased brokered deposits during the three month period ended March 31, 2024 which represented a continued strategic focus on maintaining increased liquidity during the first three months of 2024. Interest bearing demand deposits experienced a $67.9 million, or 22.3%, increase and money market deposits increased $68.1 million, while savings deposits increased by $15.8 million during the first three months of 2024 primarily related to our continued strategic focus on business account activity. Non-interest-bearing demand deposits decreased $63.3 million primarily due to a shift of certain deposits into interest bearing accounts combined with normal business activity during the quarter. At March 31, 2024, our core deposits (which includes all deposits except for certificates of deposit) totaled $1.9 billion, or 88.7% of our total deposits. We held approximately $198.4 million of brokered deposits (excluding reciprocal deposits obtained through the Certificate Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) networks) at March 31, 2024 as compared to $172.4 million at December 31, 2023. This increase was driven by a continued strategic focus to maintain strong liquidity positions and availability during the current period. Our reciprocal deposits obtained through the CDARS and ICS networks totaled $8.7 million and $103.0 million, respectively, at March 31, 2024 and the CDARS and ICS networks totaled $11.1 million and $99.5 million, respectively, at December 31, 2023. Uninsured deposits, net of fully collateralized municipal relationships, remain stable and represent approximately 37% of total deposits at March 31, 2024 and December 31, 2023.
Current wording
Total deposits increased $160.5 million, or 7.9%, to $2.2 billion at June 30, 2024 from December 31, 2023 which was driven by organic deposit growth which represented a continued focus on maintaining strong liquidity during the first six months of 2024. Interest bearing demand deposits experienced a $113.2 million, or 37.1%, increase and money market deposits increased $99.2 million, while savings deposits increased by $29.9 million during the first six months of 2024 primarily related to our continued strategic focus on business account activity. Non-interest-bearing demand deposits decreased $18.0 million primarily due to a shift of certain deposits into interest bearing accounts combined with normal business activity during the first half of 2024. At June 30, 2024, our core deposits (which includes all deposits except for certificates of deposit) totaled $2.0 billion, or 92.8% of our total deposits. Certificates of deposit decreased by $63.8 million, or 28.8%, mainly from reductions in brokered deposits during the six month period ended June 30, 2024. We held approximately $115.0 million of brokered deposits (excluding reciprocal deposits obtained through the Certificate Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) networks) at June 30, 2024 as compared to $172.4 million at December 31, 2023. This decrease was the result of increased organic deposit activity during the period which allowed for maturity of the brokered deposits without replacement and reduced interest expense. Our reciprocal deposits obtained through the CDARS and ICS networks totaled $7.5 million and $97.5 million, respectively, at June 30, 2024 and the CDARS and ICS networks totaled $11.1 million and $99.5 million, respectively, at December 31, 2023. Uninsured deposits, net of fully collateralized municipal relationships, remained stable and represent approximately 40% of total deposits as of June 30, 2024 as compared to 37% of total deposits at December 31, 2023.
Previous wording
Total borrowings from the Federal Home Loan Bank of New York were $38.0 million at March 31, 2024 and $234.5 million at December 31, 2023. This decrease represents a focus by management to reduce borrowings by using lower-cost deposits, which experienced growth during the quarter. We have the capacity to borrow an additional $476.4 million from the Federal Home Loan Bank of New York as of March 31, 2024.
Current wording
Total borrowings from the Federal Home Loan Bank of New York were $10.0 million at June 30, 2024 and $234.5 million at December 31, 2023. This decrease represents a continued focus by management to reduce borrowings by using lower-cost deposits, which experienced growth during the six months ended June 30, 2024. We have the capacity to borrow an additional $511.0 million from the Federal Home Loan Bank of New York as of June 30, 2024.
Previous wording
During the quarter, we also utilized $50 million of funding through the Bank Term Funding Program from the Federal Reserve under a one-year facility expiring in March 2025.
Current wording
During the first quarter of 2024, we also utilized $50 million of funding through the Bank Term Funding Program from the Federal Reserve under a one-year facility expiring in March 2025.
Previous wording
In September 2020, we issued $20.0 million in aggregate principal amount of fixed to floating subordinated notes (the “2020 Notes”) to certain institutional investors. The 2020 Notes are non-callable for five years, have a stated maturity of September 30, 2030, and bear interest at a fixed rate of 4.25% per year until September 30, 2025. From September 30, 2025 to the maturity date or
Current wording
In September 2020, we issued $20.0 million in aggregate principal amount of fixed to floating subordinated notes (the “2020 Notes”) to certain institutional investors. The 2020 Notes are non-callable for five years, have a stated maturity of September 30, 2030, and bear interest at a fixed rate of 4.25% per year until September 30, 2025. From September 30, 2025 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month SOFR plus 413 basis points, payable quarterly in arrears.
Previous wording
Stockholders’ equity experienced an increase of approximately $3.3 million, to $168.7 million, at March 31, 2024 from $165.4 million at December 31, 2023. The increase was due mainly to an increase of $8.0 million in retained earnings, partially offset by a $5.0 million increase in unrealized losses on the market value of investment securities recognized within the Company’s equity as accumulated other comprehensive income(loss) (“AOCI”), net of taxes as a direct result of higher market interest rates.
Current wording
Stockholders’ equity increased $12.2 million, to $177.5 million, at June 30, 2024 from $165.4 million at December 31, 2023. The increase was due mainly to an increase of $14.9 million in retained earnings, partially offset by a $3.3 million increase in unrealized losses on the market value of investment securities recognized within the Company’s equity as accumulated other comprehensive income(loss) (“AOCI”), net of taxes as a direct result of higher market interest rates.
Previous wording
The following table presents average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the three month periods ended March 31, 2024 and 2023. No tax equivalent yield adjustments have been made, as the effects would be immaterial. The average balances are daily averages for loans, as presented. Interest income on loans includes the effects of discount accretion and net deferred loan origination costs accounted for as yield adjustments. Net deferred loan fees totaled $4.8 million and $5.2 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the three month and six month periods ended June 30, 2024 and 2023. No tax equivalent yield adjustments have been made, as the effects would be immaterial. The average balances are daily averages for loans, as presented. Interest income on loans includes the effects of discount accretion and net deferred loan origination costs accounted for as yield adjustments. Average deferred loan fees totaled $4.6 million and $5.2 million for the three months ended June 30, 2024 and 2023, respectively. Average deferred loan fees totaled $4.7 million and $5.2 million for the six months ended June 30, 2024 and 2023, respectively.
Previous wording
The following table presents the dollar amount of changes in interest income and interest expense for major components of interest earning assets and interest-bearing liabilities for the periods indicated. The table distinguishes between: (1) changes attributable to volume (changes in volume multiplied by the prior period’s rate); (2) changes attributable to rate (change in rate multiplied by the prior year’s volume) and (3) total increase (decrease) (the sum of the previous columns). Changes attributable to both volume and rate are allocated ratably between the volume and rate categories.
Current wording
The following table presents the dollar amount of changes in interest income and interest expense for major components of interest earning assets and interest-bearing liabilities for the periods indicated. The table distinguishes between: (1) changes attributable to volume (changes in volume multiplied by the prior period’s rate); (2) changes attributable to rate (change in rate
Previous wording
Results of Operations for the Three Months Ended March 31, 2024 and 2023
Current wording
Results of Operations for the Three and Six Months Ended June 30, 2024 and 2023
Previous wording
Interest Income. Interest income increased $4.7 million, or 17.9%, to $31.1 million for the three months ended March 31, 2024 from $26.4 million for the three months ended March 31, 2023. This increase was primarily the result of an increase in the average balance of interest-earning assets, which increased by $115.0 million, or 5.1%, to $2.4 billion for the three months ended March 31, 2024 from $2.3 billion for the three months ended March 31, 2023. Additionally, the average yield of interest-earning assets increased by 52 basis points from 4.72% for the three months ended March 31, 2023 to 5.24% for the three months ended March 31, 2024 as a result of the higher interest rate environment and management’s focus on disciplined pricing on loans.
Current wording
Interest Income. Interest income increased $2.7 million, or 9.3%, to $32.5 million for the three months ended June 30, 2024 from $29.7 million for the three months ended June 30, 2023. This increase was primarily driven by a 51 basis points increase in the average yield of interest-earning assets which grew from 5.01% during the three months ended June 30, 2023 to 5.52% for the three months ended June 30, 2024 as a result of the higher interest rate environment. During the same comparative period, the average balance of interest-earning assets decreased by $18.5 million, or 0.8%, to $2.4 billion for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023.
Previous wording
Interest income on loans increased by $3.8 million, or 17.4%, to $25.6 million during the three months ended March 31, 2024 from $21.8 million during the three months ended March 31, 2023. The increase in interest income on loans was primarily due to the increase in the average balance of loans (net of PPP loans). The average balance of these loans increased by $119.0 million, or 7.3%, to $1.7 billion for the three months ended March 31, 2024 compared to $1.6 billion for the three months ended March 31, 2023. The average yield on loans, excluding PPP loans, increased by 44 basis points to 5.91% for the three months ended March 31, 2024 from 5.47% for the three months ended March 31, 2023 as a result of the higher interest rate environment and management’s focus on disciplined pricing on loans. The increase in the average balance of loans was due to our continued success in growing our commercial real estate portfolio, including commercial real estate construction.
Current wording
Interest income on loans increased by $2.9 million, or 12.2%, to $26.8 million during the three months ended June 30, 2024 from $23.9 million during the three months ended June 30, 2023. The increase in interest income on loans was primarily due to the increase in the average balance of loans (net of PPP loans) and an increase in the average yield on loans. The average balance of these loans increased by $39.1 million, or 2.3%, to $1.7 billion for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase in the average balance of loans was due to stability in commercial real estate loan balances, including commercial real estate construction, as well as growth in our commercial and industrial loan portfolio. The average yield on loans, excluding PPP loans, increased by 54 basis points to 6.21% for the three months ended June 30, 2024 from 5.67% for the three months ended June 30, 2023 as a result of the extended higher interest rate environment and management’s continued focus on disciplined loan pricing.
Previous wording
Interest income on securities decreased by $136 thousand to $3.4 million during the three months ended March 31, 2024 from $3.6 million during the three months ended March 31, 2023. The decrease in interest income on securities was driven primarily by a decrease in the average balance of securities outstanding during the period due to certain maturities as well as a result of the Signature Bank subordinated debt writeoff during 2023. The average balance of securities decreased by $49.2 million, or 9.3%, to $481.5 million for the three months ended March 31, 2024 compared to $530.8 million for the three months ended March 31, 2023. The average yield on investment securities increased by 13 basis points overall from 2.73% for the three months ended March 31, 2023 to 2.86% for the three months ended March 31, 2024. The increase in the average yield reflected the maturity of lower yielding investments during the current period.
Current wording
Interest income on securities decreased by $178 thousand to $3.4 million during the three months ended June 30, 2024 from $3.5 million during the three months ended June 30, 2023. The decrease in interest income on securities was driven primarily by a decrease in the average balance of securities outstanding during the current period due to certain maturities as well as a result of the Signature Bank subordinated debt writeoff during 2023. The average balance of securities decreased by $48.5 million, or 9.4%, to $467.3 million for the three months ended June 30, 2024 compared to $515.9 million for the three months ended June 30, 2023. The average yield on investment securities increased by 14 basis points overall from 2.75% for the three months ended June 30, 2023 to 2.89% for the three months ended June 30, 2024. The increase in the average yield reflected the continued maturity of lower yielding investments during the current period.
Previous wording
Interest Expense. Interest expense increased $4.3 million, or 81.3%, to $9.5 million for the three months ended March 31, 2024 from $5.2 million for the three months ended March 31, 2023. The increased interest expense was primarily the result of the increased interest rate environment environment during the period and the impact on deposit costs during the quarter. The average rate paid on interest-bearing liablities increased 93 basis points to 2.36% during the three months ended March 31, 2024 as compared to 1.43% for the three month period ended March 31, 2023. The average balance of interest-bearing liabilities increased by $134.7 million, or 9.1%, to $1.6 billion for the three months ended March 31, 2024 as compared to $1.5 billion for the three months ended March 31, 2023.
Current wording
Interest Expense. Interest expense increased $1.3 million, or 17.6%, to $8.4 million for the three months ended June 30, 2024 from $7.1 million for the three months ended June 30, 2023. The increased interest expense continues to be driven primarily by the higher interest rate environment and the impact on deposit costs as well as funding costs during the quarter. The average rate paid on interest-bearing liablities increased 33 basis points to 2.11% during the three months ended June 30, 2024 as compared to 1.78% for the three month period ended June 30, 2023. The average balance of interest-bearing liabilities decreased by $8.2 million, or 0.5%, and remained level at approximately $1.6 billion for the three months ended June 30, 2024 and for the three months ended June 30, 2023.
Previous wording
Interest expense on interest-bearing deposits increased by $4.1 million to $7.0 million for the three months ended March 31, 2024 from $2.9 million for the three months ended March 31, 2023. The increase in interest expense on interest-bearing deposits was due mainly to the continued increase in the average cost of deposits. The average cost of interest-bearing deposits increased 106 basis points to 1.97% during the three months ended March 31, 2024 as compared to 0.91% for the three months ended March 31, 2023. The average cost of interest-bearing deposits increased due to the impact of the rising interest rate environment on deposit accounts. The average balance of interest-bearing deposits increased by $145.1 million, or 11.3%, to $1.4 billion for the three months ended March 31, 2024 as compared to $1.3 billion for the three months ended March 31, 2023 primarily as a result of the increase in the average balance of certificates of deposit.
Current wording
Interest expense on interest-bearing deposits increased by $2.7 million to $7.3 million for the three months ended June 30, 2024 from $4.6 million for the three months ended June 30, 2023. The increase in interest expense on interest-bearing deposits was due mainly to the continued increase in the average cost of deposits. The average cost of interest-bearing deposits increased 62 basis points to 1.94% during the three months ended June 30, 2024 as compared to 1.32% for the three months ended June 30, 2023. The average cost of interest-bearing deposits increased due to the continued impact of the higher interest rate environment on deposit accounts. The average balance of interest-bearing deposits increased by $90.0 million, or 6.4%, to $1.5 billion for the three months ended June 30, 2024 as compared to $1.4 billion for the three months ended June 30, 2023 primarily as a result of the increases in the average balances of interest-bearing demand deposits and money market accounts.
Previous wording
We also experienced a relatively level amount of interest expense of $230 thousand and $231 thousand for the three months ended March 31, 2024 and 2023, respectively, related to the issuance in September 2020 of $20.0 million in outstanding subordinated notes, which carries an interest rate of 4.25%. These flat interest costs represent the debt service required as part of the 2020 subordinated notes.
Current wording
We also expensed a relatively level amount of approximately $231 thousand in interest expense for both the three months ended June 30, 2024 and 2023 related to the issuance in September 2020 of $20.0 million in outstanding subordinated notes, which carries an interest rate of 4.25%. In addition, we expensed $461 thousand in interest expense for both the six months ended June 30, 2024 and June 30, 2023. These flat interest costs represent the debt service required as part of the 2020 subordinated notes.
Previous wording
liquidity pressures within the industry beginning in 2023, the decrease during the quarter reflects the ability of the Company to increase deposits and strategically reduce borrowings.
Current wording
The interest expense related to borrowings in the second quarter of 2024 decreased to $890 thousand at an average cost of 4.64% as compared to interest expense of $2.3 million at an average cost of 5.23% for the same period in 2023. The second quarter 2024 average FHLB and other borrowings decreased to $76.9 million compared to $175.2 million of average FHLB and other borrowing in the same quarter of 2023. The decrease in average borrowings was the direct result of paydowns driven by increased deposits and less use of cash during the current period. Management was able to replace higher cost FHLB borrowings with lower cost borrowings though the Bank Term Funding Program and reduce interest expense during the current period. Although borrowings remain a potential source of strategic funding for the Company, the reduction in borrowings during the quarter reflects the ability of the Company to increase deposits and strategically reduce associated costs.
Previous wording
Net Interest Income. Net interest income increased $462 thousand, or 2.2%, to $21.6 million for the three months ended March 31, 2024 from $21.1 million for the three months ended March 31, 2023 due to the increase in income from interest earning assets outpacing the growth of interest costs associated with interest bearing liabilities. Average total interest-earning assets increased by $115.0 million to $2.4 billion for the three months ended March 31, 2024 from $2.3 billion for the three months ended March 31, 2023. Net interest rate spread decreased by 41 basis points to 2.88% for the three months ended March 31, 2024 from 3.29% for the three months ended March 31, 2023, reflecting a 52 basis points increase in the average yield on interest-earning assets and a 93 basis points increase in the average rate paid on interest-bearing liabilities. The net interest margin decreased 14 basis points to 3.64% for the three months ended March 31, 2024 from 3.78% for the three months ended March 31, 2023 due to the increases in the interest rate environment as well as the impact on funding and deposit costs during the period.
Current wording
Net Interest Income. Net interest income increased $1.5 million, or 6.7%, to $24.1 million for the three months ended June 30, 2024 from $22.6 million for the three months ended June 30, 2023 due to the increase in income from interest earning assets outpacing the growth of interest costs associated with interest bearing liabilities. Net interest rate spread increased by 18 basis points to 3.41% for the three months ended June 30, 2024 from 3.23% for the three months ended June 30, 2023, reflecting a 51 basis points increase in the average yield on interest-earning assets offset by a 33 basis points increase in the average rate paid on interest-bearing liabilities. The net interest margin increased 29 basis points to 4.10% for the three months ended June 30, 2024 from 3.81% for the three months ended June 30, 2023 due to the higher interest rate environment as well as the impact of managed funding and deposit costs during the period.
Previous wording
Provision for Credit Losses. The Company recognized a recovery within the provision for credit losses of $1.6 million for the three months ended March 31, 2024, compared to $6.4 million for the three months ended March 31, 2023. The decreased provision for the three months ended March 31, 2024 as compared to the same period in 2023 reflected mainly the reversal of a credit associated with the recovery in connection with the sale of Signature Bank subordinated debt which was written off in 2023. The provision for credit losses-loans decreased to $260 thousand for the three months ended March 31, 2024 as compared to $1.4 million for the three months ended March 31, 2023 as a result of decreased loans outstanding offset by specific reserves associated with non-performing loans. The allowance for credit losses to total loans was 1.47% as of March 31, 2024, an increase of three basis points, or 2.1%, versus 1.44% as of December 31, 2023.
Current wording
Provision for Credit Losses. The Company recognized a provision for credit losses of $2.2 million for the three months ended June 30, 2024, compared to $214 thousand for the three months ended June 30, 2023. The increased provision for the three months ended June 30, 2024 as compared to the same period in 2023 reflected mainly a specific reserve associated with a nonaccrual commercial real estate loan participation identified during the second quarter of 2024. The allowance for credit losses to total loans was 1.60% as of June 30, 2024, an increase of 13 basis points, or 8.8%, versus 1.47% as of December 31, 2023.
Previous wording
Noninterest income increased by $516 thousand, or 16.3%, reaching $3.7 million for the three months ended March 31, 2024 as compared to $3.2 million for the three months ended March 31, 2023. Our Wealth Management division revenues, which include our Trust and Asset Management businesses also experienced growth and represented a 21.6% increase quarter-over-quarter, to $2.9 million for the first quarter of 2024 as compared to $2.4 million for the first quarter of 2023 as a result of growth in asset values during the current period. During the same period, assets-under-management for the Trust and Asset Management group increased to $1.7 billion at March 31, 2024 from $1.3 billion at March 31, 2023.
Current wording
Noninterest income increased by $521 thousand, or 15.9%, reaching $3.8 million for the three months ended June 30, 2024 as compared to $3.3 million for the three months ended June 30, 2023. Our Wealth Management division revenues, which include our Trust and Asset Management businesses also experienced growth and represented a 15.9% increase quarter-over-quarter, to $3.0 million for the second quarter of 2024 as compared to $2.6 million for the second quarter of 2023 as a result of continued growth in asset values during the current period. During the same period, assets-under-management increased to $1.7 billion at June 30, 2024 from $1.4 billion at June 30, 2023.
Previous wording
Non-interest expense was $15.3 million for the first quarter of 2024, reflecting an increase of approximately $1.3 million, or 9.1%, as compared to $14.0 million for the same period in 2023. The increase in non-interest expense for the current three-month period was due primarily to continued investment in overall Company growth, including increases in salaries and benefit costs, professional fees, information technology, and deposit insurance. Our efficiency ratio was 60.5% for the three months ended March 31, 2024, from 57.7% for the same period in 2023.
Current wording
Non-interest expense was $15.5 million for the second quarter of 2024, reflecting an increase of approximately $1.0 million, or 7.2%, as compared to $14.5 million for the same period in 2023. The increase in non-interest expense for the current three-month period was due primarily to continued investment in overall Company growth, including increases in salaries and benefit costs, information technology, and deposit insurance. Our efficiency ratio was 55.5% for the three months ended June 30, 2024, from 55.8% for the same period in 2023.
Previous wording
Provision for Income Tax. Our provision for income taxes for the three months ended March 31, 2024 was approximately $2.3 million, compared to approximately $696 thousand for the same period in 2023. The increase for the current period was due to an increase in income before income taxes during the quarter. Our effective tax rate for the three-month period ended March 31, 2024 was 20.0%, as compared to 17.7% for the same period in 2023. The increase in the effective tax rate in the 2024 first quarter was due to the increase in proportion of pre-tax income compared with non-taxable revenue (tax-exempt interest income and earnings on bank owned life insurance) during 2024 as compared to 2023.
Current wording
Provision for Income Tax. Our provision for income taxes for the three months ended June 30, 2024 was approximately $2.0 million, compared to approximately $2.1 million for the same period in 2023. The decrease for the current period was due to lower income before income taxes during the quarter. Our effective tax rate for the three-month period ended June 30, 2024 was 19.7%, as compared to 19.1% for the same period in 2023. For the six months ended June 30, 2024, our provision for income taxes was $4.3 million, as compared to $2.8 million for the six months ended June 30, 2023. The increase for the current period was due to the increase in income before income taxes during the current six month period. Our effective tax rate for the six-month period ended June 30, 2024 was 19.9%, as compared to 18.7% for the same period in 2023. The growth of the effective tax rates for the 2024 second quarter and six month periods was due to the increase in proportion of pre-tax income compared with non-taxable revenue (tax-exempt interest income and earnings on bank owned life insurance) during 2024 as compared to 2023.
Previous wording
The market value of assets under management and/or administration at March 31, 2024 and 2023 was $1.7 billion and $1.3 billion, respectively. This includes assets held at both Orange Bank & Trust Company and HVIA at March 31, 2024 and March 31, 2023, respectively.
Current wording
The market value of assets under management and/or administration at June 30, 2024 and 2023 was $1.7 billion and $1.4 billion, respectively. This includes assets held at both Orange Bank & Trust Company and HVIA at June 30, 2024 and 2023, respectively.
Previous wording
Our expenses related to our wealth management business segment, which we record as noninterest expense, increased $293 thousand, or 16.2%, to $2.1 million for the three months ended March 31, 2024 compared to $1.8 million for the three months ended March 31, 2023. The increase in expenses was primarily due to continued growth of the business unit and investment in technology during the period.
Current wording
Our expenses related to our wealth management business segment, which we record as noninterest expense, increased $96 thousand, or 4.4%, to $2.3 million for the three months ended June 30, 2024 compared to $2.2 million for the three months ended June 30, 2023. The increase in expenses was primarily due to continued growth of the business unit and investment in technology during the period. For the six months ended June 30, 2024, our expenses related to our wealth management business segment increased $388 thousand or 9.7%, to $4.4 million for the six months ended June 30, 2024 compared to $4.0 million for the six months ended June 30, 2023. The increase in expenses was primarily due to the growth of the business unit and its related operations as well as costs associated with certain managed trust assets.
Previous wording
Our most liquid assets are cash and due from banks. The levels of these assets are dependent on our operating, financing, lending and investing activities during any given period. At March 31, 2024 and December 31, 2023, cash and due from banks totaled $144.7 million and $147.4 million, respectively. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $476.1 million at March 31, 2024 and $489.9 million at December 31, 2023.
Current wording
Our most liquid assets are cash and due from banks. The levels of these assets are dependent on our operating, financing, lending and investing activities during any given period. At June 30, 2024 and December 31, 2023, cash and due from banks totaled
Previous wording
Certificates of deposit due within one year of March 31, 2024 totaled $238.6 million, or 98.0% of total certificates of deposit. The largest concentration of certificates of deposit represented brokered deposits in the amount of approximately $207.1 million and were increased strategically due to the liquidity pressures experienced by the banking industry during 2023.
Current wording
Certificates of deposit due within one year of June 30, 2024 totaled $152.8 million, or 96.8% of total certificates of deposit. The largest concentration of certificates of deposit represented brokered deposits in the amount of $115.0 million for diversified funding purposes.
Previous wording
We participate in IntraFi Network, allowing us to provide access to multi-million-dollar FDIC deposit insurance protection on deposits for customers, businesses and public entities. We can elect to sell or repurchase this funding as reciprocal deposits from other IntraFi Network banks depending on our funding needs. At March 31, 2024, we had a total of $111.7 million of IntraFi Network deposits, all of which were repurchased as reciprocal deposits from the IntraFi Network.
Current wording
We participate in IntraFi Network, allowing us to provide access to multi-million-dollar FDIC deposit insurance protection on deposits for customers, businesses and public entities. We can elect to sell or repurchase this funding as reciprocal deposits from other IntraFi Network banks depending on our funding needs. At June 30, 2024, we had a total of $105.0 million of IntraFi Network deposits, all of which were repurchased as reciprocal deposits from the IntraFi Network.
Previous wording
Although customer deposits remain our preferred source of funds, maintaining back up sources of liquidity is part of our prudent liquidity risk management practices. We have the ability to borrow from the Federal Home Loan Bank of New York and the Federal Reserve Bank of New York (“FRB”) as well as other correspondent banks. At March 31, 2024, we had a total capacity of $622.4 million at the Federal Home Loan Bank of New York, of which $108.0 million was used to collateralize municipal deposits, and $38.0 million was utilized for advances, overnight and long-term. At March 31, 2024, we also had a $2.5 million collateralized line of credit from the Federal Reserve Bank of New York discount window with no outstanding balance. Additionally, we utilized $50 million of funding through the Bank Term Funding Program from the Federal Reserve under a one-year facility. We also had a total of $25.0 million of discretionary lines of credit at March 31, 2024 with no outstanding balance. We have a borrowing agreement with Atlantic Community Bankers Bank (“ACBB”) to provide short-term borrowings of $5.0 million at March 31, 2024. There were no outstanding borrowings with ACBB at March 31, 2024.
Current wording
Although customer deposits remain our preferred source of funds, maintaining back up sources of liquidity is part of our prudent liquidity risk management practices. We have the ability to borrow from the Federal Home Loan Bank of New York and the Federal Reserve Bank of New York (“FRB”) as well as other correspondent banks. At June 30, 2024, we had a total capacity of $611.0 million at the Federal Home Loan Bank of New York, of which $90.0 million was used to collateralize municipal deposits, and $10.0 million was utilized for long-term advances. At June 30, 2024, we also had a $2.0 million collateralized line of credit from the Federal Reserve Bank of New York discount window with no outstanding balance. Additionally, we utilized $50 million of funding through the Bank Term Funding Program from the FRB under a one-year facility expiring in March 2025. We also had a total of $20.0 million of discretionary lines of credit at June 30, 2024 with no outstanding balance. We have a borrowing agreement with Atlantic Community Bankers Bank (“ACBB”) to provide short-term borrowings of $5.0 million at June 30, 2024. There were no outstanding borrowings with ACBB at June 30, 2024.
Previous wording
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $2.3 million and $8.2 million for the three months ended March 31, 2024 and 2023, respectively. Net cash provided by (used in) investing activities, which consists primarily of disbursements for loan originations and the purchase of securities, offset by principal collections on loans, proceeds from the sale of securities and proceeds from maturing securities and pay downs on securities, was $32.5 million and ($86.3) million for the three months ended March 31, 2024 and 2023, respectively. Net cash (used in) provided by financing activities, consisting of activity in deposit accounts and borrowings, was ($37.4) million and $157.4 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $11.5 million and $17.6 million for the six months ended June 30, 2024 and 2023, respectively. Net cash provided by (used in) investing activities, which consists primarily of disbursements for loan originations and the purchase of securities, offset by principal collections on loans, proceeds from the sale of securities and proceeds from maturing securities and pay downs on securities, was $47.6 million and ($121.0) million for the six months ended June 30, 2024 and 2023, respectively. Net cash (used in) provided by financing activities, consisting of activity in deposit accounts and borrowings, was ($16.9) million and $196.0 million for the six months ended June 30, 2024 and 2023, respectively.
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Current report — wording carried from elsewhere
multiplied by the prior year’s volume) and (3) total increase (decrease) (the sum of the previous columns). Changes attributable to both volume and rate are allocated ratably between the volume and rate categories.
Current report — wording carried from elsewhere
$189.7 million and $147.4 million, respectively. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $463.1 million at June 30, 2024 and $489.9 million at December 31, 2023.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month SOFR plus 413 basis points, payable quarterly in arrears.