Table of Contents
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20429
 
 
FORM
10-Q
 
 
(Mark one)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March
31, 2024
Or
 
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
     
to
     
Commission File Number:
001-41589
 
 
PRINCETON BANCORP, INC.
(Exact name of registrant as specified in its charter)
 
 
 
Pennsylvania
  
88-4268702
(State or other jurisdiction of
incorporation or organization)
  
(I.R.S. Employer
Identification No.)
183 Bayard Lane, Princeton, New Jersey 08540
(Address of principal executive offices) (Zip Code)
(609)
921-1700
(Registrant’s telephone number, including area code)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
 
Title of each class
  
Trading
Symbol(s)
  
Name of each exchange
on which registered
Common stock, no par value
  
BPRN
  
The Nasdaq Global Market
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
☒
 
Yes
 
☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 
☒
 
Yes
 
☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
 
Large accelerated filer   ☐    Accelerated filer   ☐
Non-accelerated
filer		   ☐    Smaller reporting company   ☒
Emerging growth company   ☐     
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act). Yes
 
☐ No 
☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of May 10, 2024, there were 6,319,361 outstanding shares of the issuer’s common stock, no par value.
 
 
 

Table of Contents

TABLE OF CONTENTS

 

PART I FINANCIAL INFORMATION

   

Item 1 Financial Statements

   

Unaudited Consolidated Statements of Financial Condition - March 31, 2024 and December 31, 2023

      F-1  

Unaudited Consolidated Statements of Income - Three Months Ended March 31, 2024 and 2023

      F-2  

Unaudited Consolidated Statements of Comprehensive Income - Three Months Ended March 31, 2024 and 2023

      F-3  

Unaudited Consolidated Statements of Changes in Stockholders’ Equity-Three Months Ended March 31, 2024 and 2023

      F-4  

Unaudited Consolidated Statements of Cash Flows - Three Months Ended March 31, 2024 and 2022

      F-5  

Notes to Unaudited Consolidated Financial Statements

      F-6  

Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations

      24  

Item 3 Quanitative and Qualitative Disclosure about Market Risk

      34  

Item 4 Controls and Procedures

      34  

PART II OTHER INFORMATION

   

Item 1 Legal Proceedings

      35  

Item 1A Risk Factors

      35  

Item 2 Unregistered Sale of Equity Securities and Use of Proceeds

      35  

Item 3 Defaults Upon Senior Securities

      35  

Item 4 Mine Safety Disclosures

      35  

Item 5 Other Information

      35  

Item 6 Exhibits

      36  

 

i

Table of Contents
PART I–FINANCIAL INFORMATION
Item 1. Financial Statements.
PRINCETON BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except share data)
 
    
March 31,
2024
    
December 31,
2023
  
ASSETS
     
Cash and due from banks
    $ 13,040     $ 17,156  
Interest-earning bank balances
      18,196       17,376  
Federal funds sold
      140,831       116,025  
  
 
 
    
 
 
  
Total cash and cash equivalents
      172,067       150,557  
  
 
 
    
 
 
  
Securities
available-for-sale,
at fair value
      118,098       91,352  
Securities
held-to-maturity
(fair value $199 and $200, at March 31, 2024 and December 31, 2023, respectively)
      167       193  
Loans receivable, net of deferred fees and costs
      1,571,231       1,548,335  
Less: allowance for credit losses
      (18,618 )      (18,492 ) 
  
 
 
    
 
 
  
Loan receivable, net
      1,552,613       1,529,843  
Bank-owned life insurance
      59,240       58,860  
Premises and equipment, net
      14,115       14,453  
Accrued interest receivable
      6,405       6,089  
Restricted investment in bank stock
      1,398       1,410  
Deferred taxes, net
      11,605       11,512  
Goodwill
      8,853       8,853  
Core deposit intangible
      1,301       1,422  
Operating lease
right-of-use
asset
      22,726       23,398  
Equity method investments
      9,051       8,296  
Other assets
      10,362       10,259  
  
 
 
    
 
 
  
TOTAL ASSETS
    $ 1,988,001     $ 1,916,497  
  
 
 
    
 
 
  
LIABILITIES AND STOCKHOLDERS’ EQUITY
     
LIABILITIES
     
Deposits:
     
Non-interest-bearing
    $ 247,056     $ 249,282  
Interest-bearing
      1,458,564       1,386,459  
  
 
 
    
 
 
  
Total deposits
      1,705,620       1,635,741  
Accrued interest payable
      11,831       9,162  
Operating lease liability
      23,643       24,280  
Other liabilities
      5,099       7,103  
  
 
 
    
 
 
  
TOTAL LIABILITIES
      1,746,193       1,676,286  
  
 
 
    
 
 
  
STOCKHOLDERS’ EQUITY:
     
Common stock, no par value; 15,000,000 shares authorized, 6,320,356 shares issued and outstanding at March 31, 2024; at December 31, 2023, 6,299,331 shares issued and outstanding
      —        —   
Paid-in
capital
      98,312       98,291  
Treasury Stock, at cost of 19,000 shares at March 31, 2024
      (579 )      —   
Retained earnings
      151,860       149,414  
Accumulated other comprehensive loss
      (7,785 )      (7,494 ) 
  
 
 
    
 
 
  
TOTAL STOCKHOLDERS’ EQUITY
      241,808       240,211  
  
 
 
    
 
 
  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
    $ 1,988,001     $ 1,916,497  
  
 
 
    
 
 
  
See accompanying notes to unaudited consolidated financial statements.
 
F-1
PRINCETON BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except share data)
 
    
Three Months Ended
March 31,
  
    
2024
     
2023
  
INTEREST AND DIVIDEND INCOME
      
Loans receivable, including fees
    $ 24,940      $ 19,894  
Securities
available-for-sale:
      
Taxable
      564        278  
Tax-exempt
      286        284  
Securities
held-to-maturity
      2        3  
Other interest and dividend income
      2,274        153  
  
 
 
     
 
 
  
TOTAL INTEREST AND DIVIDEND INCOME
      28,066        20,612  
  
 
 
     
 
 
  
INTEREST EXPENSE
      
Deposits
      12,618        3,865  
Borrowings
      —         86  
  
 
 
     
 
 
  
TOTAL INTEREST EXPENSE
      12,618        3,951  
  
 
 
     
 
 
  
NET INTEREST INCOME
      15,448        16,661  
Provision for credit losses
      186        265  
  
 
 
     
 
 
  
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
      15,262        16,396  
  
 
 
     
 
 
  
NON-INTEREST
INCOME
      
Income from bank-owned life insurance
      381        290  
Fees and service charges
      432        448  
Loan fees, including preypayment penalties
      724        351  
Other
      448        285  
  
 
 
     
 
 
  
TOTAL
NON-INTEREST
INCOME
      1,985        1,374  
  
 
 
     
 
 
  
NON-INTEREST
EXPENSE
      
Salaries and employee benefits
      6,520        5,399  
Occupancy and equipment
      2,029        1,341  
Professional fees
      524        465  
Data processing and communications
      1,160        1,300  
Federal deposit insurance
      273        190  
Advertising and promotion
      142        110  
Office expense
      119        97  
Core deposit intangible
      120        135  
Other
      949        735  
  
 
 
     
 
 
  
TOTAL
NON-INTEREST
EXPENSE
      11,836        9,772  
  
 
 
     
 
 
  
INCOME BEFORE INCOME TAX EXPENSE
      5,411        7,998  
INCOME TAX EXPENSE
      1,066        1,901  
  
 
 
     
 
 
  
NET INCOME
    $ 4,345      $ 6,097  
  
 
 
     
 
 
  
Earnings per common share-basic
    $ 0.69      $ 0.97  
Earnings per common share-diluted
    $ 0.68      $ 0.95  
See accompanying notes to unaudited consolidated financial statements.
 
F-2
PRINCETON BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
 
    
Three Months Ended

March 31,
  
    
2024
    
2023
  
NET INCOME
    $ 4,345     $ 6,097  
Other comprehensive income (loss)
     
Unrealized gains (losses) arising during period on securities
available-for-sale
      (434 )      1,739  
  
 
 
    
 
 
  
Net unrealized gain (loss)
      (434 )      1,739  
Tax effect
      143       (498 ) 
  
 
 
    
 
 
  
Total other comprehensive income (loss)
      (291 )      1,241  
  
 
 
    
 
 
  
COMPREHENSIVE INCOME
    $ 4,054     $ 7,338  
  
 
 
    
 
 
  
See accompanying notes to unaudited consolidated financial statements.
 
F-3
PRINCETON BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Dollars in thousands, except share data)
 
    
Common
Stock
    
Paid-in

Capital
    
Treasury
Stock
    
Retained
Earnings
    
Accumulated
Other
Comprehensive
(Loss) Income
    
Total
  
Three Months Ended March 31, 2024 and 2023
             
Balance, December 31, 2022
    $ 34,547     $ 81,291     $ (19,452 )    $ 131,488     $ (8,273 )    $ 219,601  
Net income
      —        —        —        6,097       —        6,097  
Other comprehensive loss
      —        —        —        —        1,241       1,241  
Change in accounting principle
      —        —        —        (284 )      —        (284 ) 
Formation of Princeton Bancorp, Inc.
      (34,547 )      15,095       19,452       —        —        —   
Stock options exercised (16,307 shares)
      —        297       —        —        —        297  
Dividends declared $0.30 per share
      —        —        —        (1,843 )      —        (1,843 ) 
Dividend reinvestment plan (958 shares)
      —        33       —        (33 )      —        —   
Stock-based compensation expense
      —        164       —        —        —        164  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance, March 31, 2023
    $ —      $ 96,880     $ —      $ 135,425     $ (7,032 )    $ 225,273  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance, December 31, 2023
    $ —      $ 98,291     $ —      $ 149,414     $ (7,494 )    $ 240,211  
Net income
      —        —        —        4,345       —        4,345  
Other comprehensive loss
      —        —        —        —        (291 )      (291 ) 
Treasury stock repurchases (19,000 shares)
      —        —        (579 )      —        —        (579 ) 
Stock options exercised (2,450 shares)
      —        34       —        —        —        34  
Share redemption for tax withholding on restricted stock vesting
      —        (249 )      —        —        —        (249 ) 
Dividends declared $0.30 per share
      —        —        —        (1,866 )      —        (1,866 ) 
Dividend reinvestment plan (1,018 shares)
      —        33       —        (33 )      —        —   
Stock-based compensation expense
      —        203       —        —        —        203  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance, March 31, 2024
    $ —      $ 98,312     $ (579 )    $ 151,860     $ (7,785 )    $ 241,808  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
See accompanying notes to unaudited consolidated financial statements.
 
F-4
PRINCETON BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
    
Three Months Ended March 31,
  
    
2024
    
2023
  
CASH FLOWS FROM OPERATING ACTIVITIES
     
Net income
    $ 4,345     $ 6,097  
Adjustments to reconcile net income to net cash provided by operating activities:
     
Provision for credit losses
      186       265  
Depreciation and amortization
      409       305  
Stock-based compensation expense
      203       164  
Amortization of premiums and accretion of discount on securities
      6       11  
Accretion of net deferred loan fees and costs
      (37 )      (534 ) 
Increase in cash surrender value of bank-owned life insurance
      (380 )      (290 ) 
Deferred income tax
      98       (793 ) 
Amortization of core deposit intangible
      121       136  
Increase (decrease) in accrued interest receivable and other assets
      (152 )      2,052  
Increase (decrease) in accrued interest payable and other liabilities
      28       (227 ) 
  
 
 
    
 
 
  
NET CASH PROVIDED BY OPERATING ACTIVITIES
      4,827       7,186  
  
 
 
    
 
 
  
CASH FLOWS FROM INVESTING ACTIVITIES
     
Purchases of
available-for-sale
securities
      (28,898 )      (345 ) 
Principal repayments and maturities on securities
available-for-sale
      1,254       1,144  
Maturities, calls and principal repayments of securities
held-to-maturity
      26       2  
Net increase in loans
      (22,859 )      (18,840 ) 
Purchases of premises and equipment
      (71 )      (245 ) 
Redemption (purchases) of restricted bank stock
      12       (1,553 ) 
  
 
 
    
 
 
  
NET CASH USED IN INVESTMENT ACTIVITIES
      (50,536 )      (19,837 ) 
  
 
 
    
 
 
  
CASH FLOWS FROM FINANCING ACTIVITIES
     
Net increase (decrease) in deposits
      69,879       (55,630 ) 
Proceeds from overnight borrowings
      —        34,500  
Cash dividends
      (1,899 )      (1,876 ) 
Dividend reinvestment program
      33       33  
Share redemption for tax witholding on restricted stock vesting
      (249 )      —   
Purchase of treasury stock
      (579 )      —   
Proceeds from exercise of stock options
      34       297  
  
 
 
    
 
 
  
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
      67,219       (22,676 ) 
  
 
 
    
 
 
  
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
      21,510       (35,327 ) 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
      150,557       53,351  
  
 
 
    
 
 
  
CASH AND CASH EQUIVALENTS, END OF PERIOD
    $ 172,067     $ 18,024  
  
 
 
    
 
 
  
SUPPLEMENTARY CASH FLOWS INFORMATION:
     
Interest paid
    $ 9,949     $ 2,818  
Income taxes paid
    $ 724     $ 653  
Increase in ROU leases
    $ 1,808     $ 9,799  
Reclass of
paid-in
capital related to holding company formation
    $ —      $ 15,095  
Reclass of treasury stock related to holding company formation
    $ —      $ 19,452  
Reclass of common stock related to holding company formation
    $ —      $ (34,547 ) 
See accompanying notes to unaudited consolidated financial statements.
 
F-5
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 1 – Summary of Significant Accounting Policies
Organization and Nature of Operations
The Bank of Princeton (the “Bank”) was incorporated on March 5, 2007, under the laws of the State of New Jersey and is a New Jersey state-chartered banking institution. The Bank was granted its bank charter on April 17, 2007, commenced operations on April 23, 2007, and is a full-service bank providing personal and business lending and deposit services. As a state-chartered bank, the Bank is subject to regulation by the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation (“FDIC”). The area served by the Bank, through its 29 branches, is generally an area within an approximate
50-mile
radius of Princeton, NJ, including parts of Burlington, Camden, Gloucester, Hunterdon, Mercer, Middlesex, Ocean, and Somerset Counties in New Jersey, and additional areas in portions of Philadelphia, Montgomery, and Bucks Counties in Pennsylvania. The Bank also has two retail branches and conducts loan origination activities in select areas of New York.
The Bank offers traditional retail banking services,
one-to-four-family
residential mortgage loans, multi-family and commercial mortgage loans, construction loans, commercial business loans and consumer loans, including home equity loans and lines of credit.
On January 10, 2023, Princeton Bancorp, Inc., a Pennsylvania corporation formed by the Bank (the “Company”), acquired all the outstanding stock of the Bank in a corporate reorganization. As a result, the Bank became the sole direct subsidiary of the Company, the Company became the holding company for the Bank and the stockholders of the Bank became stockholders of the Company. As of March 31, 2024, the Company had 211 total employees and 209 full-time equivalent employees.
On May 19, 2023, the Company completed the acquisition of Noah Bank, a Pennsylvania chartered state bank headquartered in Elkins Park, Pennsylvania that primarily served the Philadelphia, North New Jersey, and New York City markets. On that date, the Company acquired 100% of the outstanding common stock of Noah Bank for cash, and Noah Bank was merged with and into the Bank.
On January 18, 2024, the Company announced that it has entered into a definitive agreement and plan of merger pursuant to which the Company will acquire Cornerstone Financial Corporation (“Cornerstone”), the parent company of Cornerstone Bank, Mount Laurel, New Jersey in a transaction valued at approximately $17.9 million. Under the terms of the merger agreement, which has been approved by the boards of directors of both companies, Cornerstone will merge with, into and under the charter of the Company. In the merger, each share of Cornerstone common stock outstanding will be exchanged for 0.24 shares of the Company, subject to adjustment, having a value of $8.16 per share based on the $34.00 closing price of the Company common stock on January 17, 2024. Each share of Cornerstone’s preferred stock outstanding will be exchanged for its stated value of $1,000 per share. The transaction is subject to receipt of all required banking regulatory approvals, Cornerstone stockholder approval and certain financial and other contingencies. The transaction is expected to close in the second or third quarter of 2024.
Basis of Financial Statement Presentation
The unaudited consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries: Bayard Lane, LLC, Bayard Properties, LLC, 112 Fifth Avenue, LLC, TBOP Delaware Investment Company and TBOP REIT, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation.
The unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission and the FDIC. Accordingly, they do not include all the information and disclosures required by GAAP for annual financial statements. In management’s opinion, the unaudited consolidated financial statements contain all adjustments, which include normal and recurring adjustments necessary for a fair presentation of the financial position and results of operations for the interim periods presented. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on
Form 10-K
for the year ended December 31, 2023.
 
F-6
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 1 – Summary of Significant Accounting Policies (continued)
Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because of uncertainties associated with estimating the amounts, timing and likelihood of possible outcomes, actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of acquired assets and liabilities, and evaluation of the potential impairment of goodwill.
Management believes that the allowance for credit losses is adequate as of March 31, 2024. While management uses current information to recognize losses on loans, future additions to the allowance for credit losses may be necessary based on changes in economic conditions in the market area or other factors.
In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to effect certain changes that result in additions to the allowance based on their judgments about information available to them at the time of their examinations.
Reclassifications
Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation.
Recent Accounting Pronouncements Not Yet Adopted
The Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)
No. 2023-07
in November 2023, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this ASU require improved reportable segment information on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024. Early adoption is permitted. The company has only one reportable segment, ASU
2023-07
is not expected to have a significant impact on the Company’s consolidated financial statements.
ASU
No. 2023-09
In December 2023, the FASB issued ASU
No. 2023-09,
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in the ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.
ASU 2023-06, “Disclosure improvements” Amends disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. The effective dates will depend, in part, on whether an entity is already subject to the SEC’s current disclosure requirements. This ASU is not expected to have a material impact on the Company’s consolidated financial statements.
Note 2 - Earnings Per Share
Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income by the weighted average number of common shares outstanding for the period adjusted to include the effect of outstanding stock options, if dilutive, using the treasury stock method. Shares issued during any period are weighted for the portion of the period they were outstanding.
 
F-7
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
The following schedule presents earnings per share data for the three-month periods ended March 31, 2024, and 2023 (in thousands, except per share data):
Note 2 - Earnings Per Share (continued)
 
    
Three months ended
March 31,
  
    
2024
     
2023
  
Net income applicable to common stock
    $ 4,345      $ 6,097  
Weighted average number of common shares outstanding
      6,328        6,257  
  
 
 
     
 
 
  
Basic earnings per share
    $ 0.69      $ 0.97  
  
 
 
     
 
 
  
Net income applicable to common stock
    $ 4,345      $ 6,097  
Weighted average number of common shares outstanding
      6,328        6,257  
Dilutive effect on common shares outstanding
      90        129  
  
 
 
     
 
 
  
Weighted average number of diluted common shares outstanding
      6,418        6,386  
  
 
 
     
 
 
  
Diluted earnings per share
    $ 0.68      $ 0.95  
  
 
 
     
 
 
  
The following schedule presents stock options granted but not exercised and the amount of share that were anti-dilutive because the weighted average exercise price equaled or exceeded the estimated fair value of our common stock for the three-months period ended March 31, 2024, and 2023:
 
    
Three months ended March 31,
  
    
2024
     
2023
  
     Options      Weighted Ave
Exercise Price		      Options      Weighted Ave
Exercise Price		  
Options to purchase
      245,633      $ 21.38        374,496      $ 22.01  
Anti-dilutive
      86,431      $ 33.19        —       $ —   
 
F-8
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 3 – Investment Securities
The following summarizes the amortized cost and fair value of securities
available-for-sale
at March 31, 2024 and December 31, 2023 with gross unrealized gains and losses therein:
 
    
March 31, 2024
  
    
Amortized
Cost
     
Gross

Unrealized
Gains
     
Gross

Unrealized

Losses
     
Fair Value
  
            (In thousands)         
Available-for-sale
         
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 71,266      $ 153      $ (6,578 )     $ 64,841  
U.S. government agency securities
      11,260        —         (1,078 )       10,182  
Obligations of state and political subdivisions
      44,056        2        (3,378 )       40,680  
Small business association (SBA) securities
      2,392        5        (2 )       2,395  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 128,974      $ 160      $ (11,036 )     $ 118,098  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
    
December 31, 2023
  
    
Amortized

Cost
     
Gross

Unrealized

Gains
     
Gross

Unrealized

Losses
     
Fair Value
  
            (In thousands)         
Available-for-sale
         
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 48,399      $ 219      $ (5,984 )     $ 42,634  
U.S. government agency securities
      6,260        —         (969 )       5,291  
Obligations of state and political subdivisions
      44,059        12        (3,262 )       40,809  
Small business association (SBA) securities
      2,617        2        (1 )       2,618  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 101,335      $ 233      $ (10,216 )     $ 91,352  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
F-9
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 3 – Investment Securities (continued)
The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related securities
available-for-sale
at March 31, 2024 and December 31, 2023 are as follows:
 
    
Less than 12 Months
    
More than 12 Months
    
Total
  
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
  
                  (In thousands)               
March 31, 2024
             
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 7,494      $ (114 )    $ 30,206      $ (6,464 )    $ 37,700      $ (6,578 ) 
U.S. government agency securities
      4,998        (2 )      5,184        (1,076 )      10,182        (1,078 ) 
Obligations of state and political subdivisions
      6,788        (108 )      31,196        (3,270 )      37,984        (3,378 ) 
Small business association (SBA) securities
      816        (2 )      —         —        816        (2 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Total
    $ 20,096      $ (226 )    $ 66,586      $ (10,810 )    $ 86,682      $ (11,036 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
 
    
Less than 12 Months
    
More than 12 Months
    
Total
  
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
  
                  (In thousands)               
December 31, 2023
             
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 2,858      $ (14 )    $ 31,398      $ (5,970 )    $ 34,256      $ (5,984 ) 
U.S. government agency securities
      —         —        5,291        (969 )      5,291        (969 ) 
Obligations of state and political subdivisions
      5,117        (102 )      30,646        (3,160 )      35,763        (3,262 ) 
Small business association (SBA) securities
      723        (1 )      —         —        723        (1 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
   $ 8,698      $ (117 )    $ 67,335      $ (10,099 )    $ 76,033      $ (10,216 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
The amortized cost and fair value of securities
available-for-sale
at March 31, 2024 by contractual maturity are shown below. Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties:
 
    
Amortized
Cost
     
Fair Value
  
     (In thousands)  
Due in one year or less
    $ 285      $ 284  
Due after one year through five years
      8,454        8,263  
Due after five years through ten years
      34,437        32,065  
Due after ten years
      12,140        10,250  
Mortgage-backed securities (GSEs)
      71,266        64,841  
Small business association (SBA) securities
      2,392        2,395  
  
 
 
     
 
 
  
   $ 128,974      $ 118,098  
  
 
 
     
 
 
  
 
F-10
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 3 – Investment Securities (concluded)
Proceeds from calls and maturities of securities
available-for-sale
were not significant for the three-month period ended March 31, 2024.
The Company uses a defined CECL methodology for allowance for credit losses on its investment securities
available-for-sale.
The Company did not have an allowance for credit losses on its investment securities
available-for-sale
as of March 31, 2024.
The Company’s securities primarily consist of the following types of instruments; U.S. guaranteed mortgage-backed securities, U.S guaranteed agency bonds, state and political subdivision issued bonds and mortgage related securities guaranteed by the SBA We believe it is reasonable to expect that the securities with a credit guarantee of the U.S. government will have a
zero-credit
loss. Therefore, no reserve was recorded for U.S. guaranteed securities or bonds at March 31, 2024. The state and political subdivision securities carry a minimum investment rating of A by either Moody’s or Standard and Poor. Some of the smaller municipalities also have insurance to cover the Company in the event of default. Therefore, the Company did not project a credit loss and therefore no reserve was recorded as of March 31, 2024.
At March 31, 2024, the Company’s
available-for-sale
securities portfolio consisted of approximately 227 securities, of which 164
available-for-sale
securities were in an unrealized loss position for more than twelve months and 30
available-for-sale
securities were in a loss position for less than twelve months. The
available-for-sale
securities in a loss position for more than twelve months consisted of 98 municipal securities aggregating $31.2 million with a loss of $3.3 million, 62 mortgage-backed
securities-GSE
aggregating $30.2 million with a loss of $6.5 million and four agency securities aggregating $5.2 million with a loss of $1.1 million. The Company does not intend to sell these securities, and it is not more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. Unrealized losses primarily relate to interest rate fluctuations and not credit concerns.
There are no securities pledged as of March 31, 2024, and December 31, 2023.
Note 4 – Loans Receivable
Loans receivable, net at March 31, 2024 and December 31, 2023 were comprised of the following:
 
    
March 31,
2024
     
December 31,
2023
  
     (In thousands)  
Commercial real estate
    $ 1,162,741      $ 1,142,864  
Commercial and industrial
      45,930        50,961  
Construction
      321,009        310,187  
Residential first-lien mortgage
      36,565        38,040  
Home equity/consumer
      7,311        8,081  
  
 
 
     
 
 
  
Total loans
      1,573,556        1,550,133  
Deferred fees and costs
      (2,325 )       (1,798 ) 
  
 
 
     
 
 
  
Loans, net
    $ 1,571,231      $ 1,548,335  
  
 
 
     
 
 
  
The Company did not purchase any loans during the three months ended March 31, 2024, or 2023.
 
F-11
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 4 – Loans Receivable (continued)
Upon CECL, the Company uses the discounted cash flow methodology in determining the appropriate quantitative adjustments, which projects future losses, based on historical and peer loss data, as part of the allowance for credit losses (“ACL”) reserve. Qualitative adjustments include and consider changes in national, regional, and local economic and business conditions, an assessment of the lending environment, including underwriting standards, and other factors affecting credit quality. There were no significant changes to the Company’s ACL methodology for the quarter ended March 31, 2024.
The following table presents the components of the allowance for credit losses:
 
    
March 31,
2024
     
December 31,
2023
  
     (In thousands)  
Allowance for credit losses - loans
    $ (18,618 )     $ (18,492 ) 
Allowance for credit losses - off balance sheet
      (473 )       (589 ) 
  
 
 
     
 
 
  
   $ (19,091 )     $ (19,081 ) 
  
 
 
     
 
 
  
The following table presents nonaccrual loans by segment of the loan portfolio as of March 31, 2024 and December 31, 2023:
 
    
March 31, 2024
     
December 31, 2023
  
    
With a

Related

Allowance
     
Without a

Related

Allowance
     
With a

Related

Allowance
     
Without a

Related

Allowance
  
            (In thousands)         
Commercial real estate
    $ 110      $ 1,235      $ —       $ 4,485  
Commercial and industrial
      40      $ 596        —         2,116  
Construction
      —         —         —         —   
Residential first-lien mortgage
      —         134        —         107  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total nonaccrual loans
    $ 150      $ 1,965      $ —       $ 6,708  
  
 
 
     
 
 
     
 
 
     
 
 
  
The calculation of the allowance for credit losses does not include any accrued interest receivable. The Company’s policy is to write off any interest not collected after 90 days. During the three-month period ending March 31, 2024, the Company wrote off $310 thousand in accrued interest receivable for loans, compared to $130 
thousand for the three-month period ending March 31, 2023. Accrued interest receivable related to loans, at March 31, 2024, and March 31, 2023, was
 $5.6 million and $4.3 million, respectively. The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loan receivables by the length of time a recorded payment is past due. The following table presents the segments of the loan portfolio, summarized by the past due status as of March 31, 2024:
 
    
30-59

Days
Past
Due
     
60-89

Days
Past
Due
     
>90
Days
Past
Due
     
Total Past
Due
     
Current
     
Total
Loans
Receivable
     
Loans
Receivable
>90 Days
and
Accruing
  
                          (In thousands)                       
Commercial real estate
    $ 356      $ 841      $ 1,345      $ 2,542      $ 1,160,199      $ 1,162,741      $ —   
Commercial and industrial
      232        274        636        1,142        44,788        45,930        —   
Construction
      —         —         —         —         321,009        321,009        —   
Residential first-lien mortgage
      27        —         134        161        36,404        36,565        —   
Home equity/consumer
      —         —         —         —         7,311        7,311        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 615      $ 1,115      $ 2,115      $ 3,845      $ 1,569,711      $ 1,573,556      $ —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
F-12
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 4 – Loans Receivable (continued)
The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2023:
 
    
30-59

Days
Past
Due
     
60-89

Days
Past
Due
     
>90
Days
Past
Due
     
Total Past
Due
     
Current
     
Total
Loans
Receivable
     
Loans
Receivable
>90 Days
and
Accruing
  
                          (In thousands)                       
Commercial real estate
    $ 159      $ —       $ 4,485      $ 4,644      $ 1,138,220      $ 1,142,864      $ —   
Commercial and industrial
      303        —         2,116        2,419        48,542        50,961        —   
Construction
      —         —         —         —         310,187        310,187        —   
Residential first-lien mortgage
      —         —         107        107        37,933        38,040        —   
Home equity/consumer
      29        —         —         29        8,052        8,081        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 491      $ —       $ 6,708      $ 7,199      $ 1,542,934      $ 1,550,133      $ —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. The Company evaluates risk ratings on an ongoing basis and assigns one of the following ratings: pass, special mention, substandard and doubtful. The Company engages a third party to review its assessment on a semiannual basis. The Company classifies residential and consumer loans as either performing or nonperforming based on payment status.
 
F-13
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of March 31, 2024.
Note 4 – Loans Receivable (continued)
 
     2024      2023      2022      2021      2020      Prior      Revolving
Loans		     Total  
     (Dollars in thousands)  
Commercial real estate
                       
Pass
    $ 25,851      $ 134,137      $ 244,778      $ 116,312      $ 61,828      $ 574,323      $ 5,512     $ 1,162,741  
Special mention
      —         —         —         —         —         —         —        —   
Substandard
      —         —         —         —         —         —         —        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total commercial real estate
      25,851        134,137        244,778        116,312        61,828        574,323        5,512       1,162,741  
Current period gross
charge-offs
                     (237 )         (237 ) 
Commercial and industrial
                       
Pass
      653        563        1,615        11,702        148        12,158        12,230       39,069  
Special mention
      —         —         —         —         —         4,508        —        4,508  
Substandard
      —         —         —         —         500        1,853        —        2,353  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total commercial and industrial
      653        563        1,615        11,702        648        18,519        12,230       45,930  
Current period gross
charge-offs
                     (46 )         (46 ) 
Construction
                       
Pass
      6,050        5,832        17,809        83,849        11,371        7,391        188,707       321,009  
Special mention
      —         —         —         —         —         —         —        —   
Substandard
      —         —         —         —         —         —         —        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total construction
      6,050        5,832        17,809        83,849        11,371        7,391        188,707       321,009  
Residential first-lien mortgage
                       
Performing
      —         —         966        3,805        2,816        28,846        —        36,433  
Nonperforming
      —         —         —         —         —         132        —        132  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total residential first-lien mortgage
      —         —         966        3,805        2,816        28,978        —        36,565  
Home equity/consumer
                       
Performing
      223        546        1,371        298        3        1,893        2,949       7,283  
Nonperforming
      —         —         28        —         —         —         —        28  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total home equity/consumer
      223        546        1,399        298        3        1,893        2,949       7,311  
Total
                       
Pass
      32,777        141,078        266,539        215,966        76,166        624,611        209,398       1,566,535  
Special mention
      —         —         —         —         —         4,508        —        4,508  
Substandard
      —         —         28        —         500        1,985        —        2,513  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total loans
    $ 32,777      $ 141,078      $ 266,567      $ 215,966      $ 76,666      $ 631,104      $ 209,398     $ 1,573,556  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
 
F-14
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 4 – Loans Receivable (continued)
The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of December 31, 2023.
 
     2023      2022      2021      2020      2019      Prior      Revolving
Loans		      Total  
     (Dollars in thousands)  
Commercial real estate
                        
Pass
    $ 132,834      $ 233,436      $ 116,836      $ 53,574      $ 175,991      $ 417,417      $ 5,551      $ 1,135,639  
Special mention
      —         —         —         —         —         2,740        —         2,740  
Substandard
      —         —         —         —         —         4,485        —         4,485  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total commercial real estate
      132,834        233,436        116,836        53,574        175,991        424,642        5,551        1,142,864  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
1,718
 
      
 
1,718
 
Commercial and industrial
                        
Pass
      2,098        2,304        11,925        1,962        1,133        13,954        15,045        48,421  
Special mention
      —         —         —         —         —         500        —         500  
Substandard
      —         —         —         —         —         2,040        —         2,040  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total commercial and industrial
      2,098        2,304        11,925        1,962        1,133        16,494        15,045        50,961  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
55
 
      
 
55
 
Construction
                        
Pass
      5,832        18,379        91,774        19,216        —         8,484        166,502        310,187  
Special mention
      —         —         —         —         —         —         —         —   
Substandard
      —         —         —         —         —         —         —         —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total construction
      5,832        18,379        91,774        19,216        —         8,484        166,502        310,187  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
148
 
      
 
148
 
Residential first-lien mortgage
                        
Performing
      —         979        4,792        2,839        1,545        27,778        —         37,933  
Non performing
      —         —         —         —         —         107        —         107  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total residential first-lien mortgage
      —         979        4,792        2,839        1,545        27,885        —         38,040  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
2
 
      
 
2
 
Home equity/consumer
                        
Performing
      1,153        1,016        1,172        —         —         1,606        3,134        8,081  
Nonperforming
      —         —         —         —         —         —         —         —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total home equity/consumer
      1,153        1,016        1,172        —         —         1,606        3,134        8,081  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
                        
Pass/performing
      141,917        256,114        226,499        77,591        178,669        469,239        190,232        1,540,261  
Special mention
      —         —         —         —         —         3,240        —         3,240  
Substandard /non performing
      —         —         —         —         —         6,632        —         6,632  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total loans
    $ 141,917      $ 256,114      $ 226,499      $ 77,591      $ 178,669      $ 479,111      $ 190,232      $ 1,550,133  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
The following table presents the allowance for credit losses on loans receivable at and for the three months ended March 31, 2024:
 
     Commercial
real estate		    
Commercial
and
industrial
    
Construction
    
Residential
first-lien
mortgage
    
Home equity/
consumer
    
Total
  
                 (In thousands)              
Allowance for credit losses:
             
Beginning balance
    $ 16,047     $ 488     $ 1,145     $ 725     $ 87     $ 18,492  
Provision
1
     631       (31 )      (124 )      (153 )      (21 )      302  
Charge-offs
      (237 )      (46 )      —        —        —        (283 ) 
Recoveries
      5       102       —        —        —        107  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
    $ 16,446     $ 513     $ 1,021     $ 572     $ 66     $ 18,618  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
1
 
The provision for credit losses on the Consolidated Statement of Income is $186,000 comprising of a $302,000 thousand increase to the ACL for loans and a $116,000 reduction to the reserve for unfunded liabilities.
 
F-15
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 4 – Loans Receivable (continued)
The following table presents the allowance for credit losses on loans receivable at and for the three months ended March 31, 2023:
 
    
Commercial
real estate
    
Commercial
and
industrial
    
Construction
    
Residential
first-lien
mortgage
    
Home equity/
consumer
     
PPP
     
Unallocated
    
Total
  
     (In thousands)  
Allowance for credit losses:
                   
Beginning balance
    $ 8,654     $ 271     $ 6,289     $ 236     $ 45      $ —       $ 966     $ 16,461  
CECL adoption
      1,384       (73 )      (1,269 )      428       195        —         (966 )      (301 ) 
Provision
1
      (4 )      16       329       (10 )      13        —         —        344  
Charge-offs
      —        —        —        —        —         —         —        —   
Recoveries
      3       —        —        —        —         —         —        3  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
    
 
 
  
Total
    $ 10,037     $ 214     $ 5,349     $ 654     $ 253      $ —       $ —      $ 16,507  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
    
 
 
  
 
1
 
The provision for credit losses on the Consolidated Statement of Income is $265,000 comprising a $344,000 increase to the allowance for credit losses on loans and a $79,000 reduction to the reserve for unfunded liabilities.
As of March 31, 2024, the Company had six loans totaling $2.1 million that were individually analyzed for potential credit loss and all the loans have real estate as credit support. Compared to December 31, 2023, the Company had nine loans totaling $6.7 million that were individually analyzed for potential credit loss.
Occasionally, the Company will modify the contractual terms of loans to a borrower experiencing financial difficulties as a way to mitigate loss, proactively work with borrowers in financial difficulty, or to comply with regulations regarding the treatment of certain bankruptcy filing and discharge situations. Typically, such concessions may consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, extension of additional credit base on receipt of adequate collateral, or a deferment or reduction of payments (principal or interest) which materially alters the Company’s position or significantly extends the note’s maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan’s origination. When principal forgiveness is provided, the amount forgiven is charged off against the allowance for credit losses on loans.
Note 5 – Deposits
The components of deposits were as follows:
 
    
March 31,

2024
    
December 31,

2023
  
     (Dollars in thousands)  
Demand,
non-interest-bearing
checking
    $ 247,056        14.48 %    $ 249,282        15.24 % 
Demand, interest-bearing checking
      215,364        12.63 %      247,939        15.16 % 
Savings
      149,386        8.76 %      146,484        8.96 % 
Money market
      378,652        22.20 %      354,005        21.64 % 
Time deposits, $250,000 and over
      179,479        10.52 %      173,614        10.61 % 
Time deposits, other
      535,683        31.41 %      464,417        28.39 % 
  
 
 
     
 
 
    
 
 
     
 
 
  
   $ 1,705,620        100.00 %    $ 1,635,741        100.00 % 
  
 
 
     
 
 
    
 
 
     
 
 
  
 
F-16
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 6 – Borrowings
At March 31, 2024, and December 31, 2023, the Company had no borrowings outstanding.
Note 7 – Fair Value Measurements and Disclosures
The Company follows the guidance on fair value measurements now codified as FASB ASC Topic 820,
Fair Value Measurement
(“Topic 820”)
.
 Fair value measurements are not adjusted for transaction costs. Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
Management uses its best judgment in estimating the fair value of the Company’s financial instruments, however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transactions on the dates indicated. The estimated fair value amounts have been measured as of their respective
period-end
and have not been
re-evaluated
or updated for the purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each
period-end.
The fair value measurement hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level
 1
: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level
 2
: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.
Level
 3
: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).
An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2024 were as follows:
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
March 31,
2024
  
     (In thousands)  
Mortgage-backed securities
-U.S.
government sponsored enterprise (GSEs)
    $ —       $ 64,841      $ —       $ 64,841  
U.S. government agency securities
      —         10,182        —         10,182  
Obligations of state and political subdivisions
      —         40,680        —         40,680  
Small Business Association (SBA) securities
      —         2,395        —         2,395  
  
 
 
     
 
 
     
 
 
     
 
 
  
Securities
available-for-sale
at fair value
    $ —       $ 118,098      $ —       $ 118,098  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
F-17
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 7 – Fair Value Measurements and Disclosures (continued)
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy, used at December 31, 2023 were as follows:
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
December 31,
2023
  
     (In thousands)  
Mortgage-backed securities
-U.S.
government sponsored enterprise (GSEs)
    $ —       $ 42,634      $ —       $ 42,634  
U.S. government agency securities
         5,291        —         5,291  
Obligations of state and political subdivisions
      —         40,809        —         40,809  
Small Business Association (SBA) securities
      —         2,618        —         2,618  
  
 
 
     
 
 
     
 
 
     
 
 
  
Securities
available-for-sale
at fair value
    $ —       $ 91,352      $ —       $ 91,352  
  
 
 
     
 
 
     
 
 
     
 
 
  
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2024, were as follows.
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
March 31,
2024
  
     (In thousands)  
Collateral dependent loan
    $ —

 
    $ —       $ 95      $ 95  
  
 
 
     
 
 
     
 
 
     
 
 
  
   $ —


   $ —       $ 95      $ 95  
  
 
 
     
 
 
     
 
 
     
 
 
  
The following table presents quantitative information using Level 3 fair value measurements at March 31, 2024.
 
Description
   
March 31,
2024
     
Valuation
Technique
     
Unobservable
Input
     
Range
(Weighted
Average)
  
     (Dollars in thousands)  
           Discount        6.0 % 
Collateral dependent loan
    $ 95        Collateral
1
 		      adjustment        (6.0 %) 
 
1
 
Value based on third party offer to purchase note from the Bank.
 
F-18
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 7 – Fair Value Measurements and Disclosures (continued)
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2023, were as follows:
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
December 31
2023
  
     (In thousands)  
Collateral dependent loan
    $ —       $ —       $ 4,485      $ 4,485  
  
 
 
     
 
 
     
 
 
     
 
 
  
   $ —       $ —       $ 4,485      $ 4,485  
  
 
 
     
 
 
     
 
 
     
 
 
  
The following table presents quantitative information using Level 3 fair value measurements at December 31, 2023.
 
Description
   
December 31,
2023
     
Valuation
Technique
     
Unobservable
Input
     
Range
(Weighted
Average)
  
     (Dollars in thousands)  
           Discount        0.0 % 
Collateral dependent loan
    $ 4,485        Collateral
1
 		      adjustment        (0.0 %) 
 
1
 
Value based on third party offer to purchase note from the Bank.
There were no transfers between fair value hierarchy levels during the three months ended March 31, 2024 or 2023. The Company’s policy is to recognize transfers between levels as of the end of the reporting period.
The following methods and assumptions were used by the Company in estimating fair value disclosures:
Investment Securities
The fair value of securities
available-for-sale
(carried at fair value) and
held-to-maturity
(carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Level 2 debt securities are valued by a third-party pricing service commonly used in the banking industry, and not adjusted by management. Level 2 fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, live trading levels, trade execution date, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.
Individual evaluated loans (generally carried at fair value)
Individual loans carried at fair value are those loans in which the Company has measured for a reserve and are generally based on the fair value of the related loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds, discounted for estimated selling costs or other factors the Company determines will impact collection of proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.
 
F-19
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 7 – Fair Value Measurements and Disclosures (continued)
The carrying amounts and estimated fair value of financial instruments at March 31, 2024 are as follows.
 
    
March 31, 2024
  
    
Carrying
Amount
     
Estimated
Fair Value
     
Level 1
     
Level 2
     
Level 3
  
     (In thousands)  
Financial Assets:
   
Cash and cash equivalents
    $ 172,067      $ 172,067      $ 172,067      $ —       $ —   
Securities
available-for-sale
at fair value
      118,098        118,098        —         118,098        —   
Securities
held-to-maturity
      167        167        —         167        —   
Loans receivable, net
      1,552,613        1,495,787        —         —         1,495,787  
Restricted investments in bank stock
      1,398        1,398        —         1,398        —   
Accrued interest receivable
      6,405        6,405        —         6,405        —   
Equity method investments
      9,051        9,051        —         5,900        3,151  
Mortgage servicing rights
      1,383        1,383        —         1,383        —   
Financial Liabilities:
               
Deposits
    $ 1,705,620        1,705,620      $ —       $ 1,705,620      $ —   
Accrued interest payable
      11,831        11,831        —         11,831        —   
The carrying amounts and estimated fair value of financial instruments at December 31, 2023 are as follows:
 
    
December 31, 2023
  
    
Carrying
Amount
     
Estimated
Fair Value
     
Level 1
     
Level 2
     
Level 3
  
     (In thousands)  
Financial Assets:
   
Cash and cash equivalents
    $ 150,557      $ 150,557      $ 150,557      $ —       $ —   
Securities AFS
      91,352        91,352        —         91,352        —   
Securities HTM
      193        192        —         192        —   
Loans receivable, net
      1,529,843        1,425,814        —         —         1,425,814  
Restricted bank stock
      1,410        1,410        —         1,410        —   
Accrued interest receivable
      6,089        6,089        —         6,089        —   
Equity method investments
      8,296        8,296        —         5,900        2,396  
Financial Liabilities
               
Deposits
      1,635,741        1,581,762        —         1,581,762        —   
Accrued interest payable
      9,162        9,162        —         9,162        —   
The fair value of cash and cash equivalents, restricted bank stock, accrued interest receivable, and accrued interest payable are measured at the Company’s carrying amount.
The fair value of loans, deposits and borrowings are measured on a discounted basis using similar rates and terms.
The Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSR is obtained through independent third-party valuations.
Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).
Limitations
The fair value estimates are made at a discrete point in time based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors.
 
F-20
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 7 – Fair Value Measurements and Disclosures (concluded)
These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Further, the foregoing estimates may not reflect the actual amount that could be realized if all or substantially all the financial instruments were offered for sale. This is due to the fact that no market exists for a sizable portion of the loan, deposit and
off-balance
sheet instruments.
In addition, the fair value estimates are based on existing on and
off-balance
sheet financial instruments without attempting to value anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.
Finally, reasonable comparability between financial institutions may not be practical due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values.
Note 8 – Leases
Leases (Topic 842) establishes a right of use model that requires a lessee to record a right of use asset (“ROU”) and a lease liability for all leases with terms longer than 12 months. The Company is obligated under 26 operating lease agreements for 25 branches and its corporate offices with terms extending through 2039. The Company’s lease agreements include options to renew at the Company’s discretion. The extensions are reasonably certain to be exercised, therefore they were considered in the calculations of the ROU asset and lease liability.
The following table represents the classification of the Company’s right of use and lease liability.
 
    
Statement of Financial

Condition Location
     
Three Months Ended
March 31, 2024
     
Year ended
December 31, 2023
  
            (In thousands)         
Operating Lease Right of Use Asset:
         
Gross carrying amount
       $ 23,398      $ 16,026  
Increased asset from new leases
         1,808        9,799  
Accumulated amortization
         (2,480 )       (2,427 ) 
     
 
 
     
 
 
  
Net book value
     
Operating lease right-of-use asset
      $ 22,726      $ 23,398  
     
 
 
     
 
 
  
Operating Lease Liability:
         
Lease liability
      Operating lease liability      $ 23,643      $ 24,280  
     
 
 
     
 
 
  
As of March 31, 2024, the weighted-average remaining lease terms for operating leases was 11.6 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.48%. The Company used FHLB fixed rate advances or at the time the lease was placed in service for the term most closely aligning with remaining lease term.
 
F-21
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 8 – Leases (continued)
Future minimum payments under operating leases with terms longer than 12 months are as follows at March 31, 2024 (in thousands):
 
Twelve months ended March 31,
   
2024
    $ 3,501  
2025
      3,453  
2026
      3,269  
2027
      2,992  
2028
      2,779  
Thereafter
      15,748  
  
 
 
  
Total future operating lease payment
      31,742  
Amounts representing interest
      (8,099 ) 
  
 
 
  
Present value of net future lease payments
    $ 23,643  
  
 
 
  
 
    
Three Months Ended
March 31,
  
    
2024
     
2023
  
     (In thousands)  
Lease cost:
      
Operating lease
    $ 987      $ 665  
Short-term lease cost
      48        2  
  
 
 
     
 
 
  
Total lease cost
    $ 1,035      $ 667  
  
 
 
     
 
 
  
Other information:
      
Cash paid for amounts included in the measurement of lease liabilities
    $ 898      $ 585  
  
 
 
     
 
 
  
Note 9 – Goodwill and Core Deposit Intangible
In accordance with ASC 805, the Company recorded $8.9 million of goodwill along with a core deposit intangible asset of $4.2 million of for the five branches acquired in 2019. The Noah Bank acquisition that occurred in 2023 did not generate any goodwill, but the Bank recorded $98 thousand in core deposit intangible asset. The core deposit intangible asset is being amortized over 10 years, using the sum of the year’s digits. Except as set forth below, GAAP requires that goodwill be tested for impairment annually (with the Company’s annual evaluation occurring on May 31 of each year) or more frequently if impairment indicators arise. The reporting unit was determined to be our community banking operations, which is our only operating segment.
ASC Topic
350-20
 
guidance requires an annual review of the fair value of a Reporting
Unit that has goodwill in order to determine if it is more likely than not (that is, a likelihood of more than
 
50
%)
that the fair value of a Reporting Unit is less than its carrying amount, including goodwill. A qualitative factor test can be performed to determine whether it is necessary to perform a quantitative goodwill impairment test. If this qualitative test determines it is not more likely than not (less than
 
50
%
probability) that the fair value of the Reporting Unit is less than the Carrying Value, then the Company does not have to perform a quantitative test and goodwill can be considered not impaired. The Company performed its annual review at May 31, 2023 and determined that it was more than 50% probable the fair value of the Reporting Unit exceeds the then Carrying Value, therefore a quantitative test was not required as of May 31, 2023.
 
F-22
PRINCETON BANCORP, INC.
Notes to Consolidated Financial Statements (unaudited)
 
Note 9 – Goodwill and Core Deposit Intangible (continued)
The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows:
 
    
Goodwill
     
Core Deposit
Intangible
  
     (In thousands)  
Balance at December 31, 2023
    $ 8,853      $ 1,422  
Amortization expense
      —         (121 ) 
  
 
 
     
 
 
  
Balance at March 31, 2024
    $ 8,853      $ 1,301  
  
 
 
     
 
 
  
As of March 31, 2024, the remaining current fiscal year and future fiscal periods amortization for the core deposit intangible is (in thousands):
 
2024
      314  
2025
      353  
2026
      274  
2027
      195  
Thereafter
      165  
  
 
 
  
Total
    $ 1,301  
  
 
 
  
Note 10 – Subsequent Events
On April 23, 2024, during the Company’s annual shareholder meeting, the Board of Directors approved an amendment to the Company’s articles of incorporation to authorize a class of preferred stock consisting of 2,000,000 shares.
On April 24, 2024, the Board of Directors declared a cash dividend of $0.30 per share of common stock to shareholders of record on May 10, 2024, payable on May 31, 2024.
Note 11 – Risk and Uncertainties
The occurrence of events which adversely affect the global, national, and regional economies may have a negative impact on our business. Like other financial institutions, our business relies upon the ability and willingness of our customers to transact business with us, including banking, borrowing and other financial transactions. A strong and stable economy at each of the local, federal, and global levels is often a critical component of consumer confidence and typically correlates positively with our customers’ ability and willingness to transact certain types of business with us. Local and global events outside of our control which disrupt the New Jersey, Pennsylvania, New York, United States and/or global economy may therefore negatively impact our business and financial condition.
Government economic programs intended to backstop and bolster the economy through the pandemic have ended, and the nation’s economy has entered an inflationary phase. The Consumer Price Index has risen to levels not experienced since the 1980s while the labor market remains very tight, contributing additional inflationary pressure. To address the inflation problem, the Federal Reserve has reversed course on its previously accommodative monetary policies and aggressively increased short-term interest rates. These actions are intended to slow overall economic activity and risk entering the economy into a recession. Regional conflicts around the world, including between Russia and Ukraine, have exacerbated pandemic-related supply chain issues, upset numerous global markets including energy and certain raw materials, and generally added to economic uncertainty and geopolitical instability. Any or all could have negative downstream effects on the Company’s operating results, the extent of which is indeterminable at this time.
 
F-23
 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis in conjunction with the unaudited consolidated interim financial statements contained in Part I, Item 1 of this report, and with our audited consolidated financial statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” presented in our Form 10-K as of and for the year ended December 31, 2023.

Cautionary Statement Regarding Forward-Looking Statements

The Company may from time to time make written or oral “forward-looking statements,” including statements contained in the Company’s filings with the Securities and Exchange Commission, in its reports to stockholders and in other communications by the Company (including this press release), which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended.

These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the Federal Reserve. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the integration of the businesses of the Company and Cornerstone Financial Corporation “Cornerstone” following the completion of the business combination with Cornerstone Transaction, may be more difficult, time-consuming or costly than expected; the ability to obtain required regulatory and shareholder approvals, and the ability to complete the Transaction on the expected timeframe may be more difficult, time-consuming or costly than expected; the global impact of the regional conflicts around the world, including the Ukraine and the Middle East; the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and Bank conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations; market volatility; the value of the Company’s products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors’ products and services; the willingness of customers to substitute competitors’ products and services for the Company’s products and services; credit risk associated with the Company’s lending activities; risks relating to the real estate market and the Company’s real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Company and the Bank; and the timing and nature of the regulatory response to any applications filed by the Company and the Bank; technological changes; other acquisitions; changes in consumer spending and saving habits; those risks disclosed in the Company’s filings with the SEC, including under the heading “Risk Factors” set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and the success of the Company at managing the risks involved in the foregoing.

The Company cautions that the foregoing list of important factors is not exclusive. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company, except as required by applicable law or regulation.

Throughout this document, references to “we,” “us,” or “our” refer to the Company and the Bank.

 

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Executive Overview

Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 22 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge and Sicklerville. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation (“FDIC”).

On October 19, 2022, the Bank entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Cornerstone Financial Corporation, a New Jersey based holding company from Cornerstone bank (“Cornerstone”). Pursuant to the terms and conditions set forth in the Merger Agreement, Cornerstone will merge with and into Princeton Bancorp, with Cornerstone surviving (the “Merger”). The Bank plans to merge Cornerstone with and into the Company immediately after the Merger. The Company has received the requisite approvals of the Merger Agreement from the Federal Deposit Insurance Corporation, and New Jersey state bank regulators. The Company anticipates that the Merger will close in the third quarter of 2024.

The Company’s common stock trades on the “Nasdaq Global Select Market” under ticker symbol, “BPRN.”

Critical Accounting Policies and Estimates

Princeton Bancorp has chosen accounting policies that it believes are appropriate to accurately and fairly report its operating results and financial position, and the Company applies those accounting policies in a consistent manner. The Significant Accounting Policies are summarized in Note 1 to the consolidated financial statements included in the 2023 Annual Report on Form 10-K. There have been no changes to the Critical Accounting Estimates since the Company filed its Annual Report on Form 10-K for the year ended December 31, 2023.

New Accounting Pronouncements

Refer to Note 1 to the consolidated financial statements included in the 2023 Annual Report on Form 10-K and Note 1- Summary of Significant Accounting Policies in this document.

Economy

The US economy is showing signs of stress with inflation hitting a 40-year high, an increase in energy prices, specifically home-heating costs, higher interest rates set by the Federal Open Market Committee (impacting the real estate market) and uncertainties resulting from regional conflicts in around the world, including in Ukraine and the Middle East. However, the unemployment rate in New Jersey is below the national average.

Comparison of Financial Condition at March 31, 2024 and December 31, 2023

General

Total assets were $1.99 billion on March 31, 2024, an increase of $71.5 million, or 3.73%, when compared to $1.92 billion at the end of 2023. The primary reason for the increase in total assets was attributable to increases in available for sale securities of $26.7 million, an increase in net loans of $22.9 million, and an increase in cash and cash equivalents of approximately $21.5 million.

Cash and cash equivalents

Cash and cash equivalents increased $21.5 million, or 14.29%, to $172.1 million at March 31, 2024 compared to December 31, 2023. This increase was primarily related to deposit growth of approximately $69.9 and partially offset by increases in available-for-sale securities of $26.7 million and in total loans of $22.9 million.

 

25

Table of Contents

Investment securities

Total available-for-sale investment securities increased million $26.7, or 29.28%, to $118.1 million at March 31, 2024 compared to December 31, 2023. This increase was related to the purchase of Government National Mortgage Association securities during the first quarter of 2024.

Loans

Loans, net of deferred loan fees and costs, increased $22.9 million, or 1.48%, to $1.57 billion at March 31, 2024 compared to December 31, 2023. The increase in the Company’s net loans consisted of a $19.9 million increase in commercial real estate loans and a $10.8 million increase in construction loans, partially offset by a decrease of $5.0 million in commercial and industrial loans, a decrease of $1.5 million in residential mortgages and a decrease of $770 thousand in HELOC/consumer loans.

Charge-offs for first quarter of 2024 were $283 thousand and recoveries were $107 thousand compared to the fourth quarter of 2023 which recorded charge offs of $55 thousand and recoveries of $65 thousand. The coverage ratio of the allowance for credit losses to period end loans was 1.18% at March 31, 2024 and 1.19% at December 31, 2023.

At March 31, 2024, non-performing assets totaled $2.1 million, a decrease of $4.6 million when compared to the amount at December 31, 2023. The decrease was primarily related to a $4.5 million commercial real estate loan which was sold during the first quarter of 2024. Non-performing assets as a percentage of total loans, net of deferred fees and costs, was 0.13% at March 31, 2024 and 0.43% at December 31, 2023.

Deposits

Total deposits at March 31, 2024 increased $69.9 million, or 4.27%, when compared to December 31, 2023. Certificates of deposit increased $77.1 million, money market deposits increased $24.7 million, and savings deposits increased $2.9 million. Partially offsetting these increases were decreases in interest-bearing demand deposits of $32.6 million and non-interest-bearing deposits of $2.2 million.

At March 31, 2024, the Company had approximately $426.7 million in uninsured deposits, consisting of $67.6 million in non-interest-bearing demand deposits, $128.7 million in interest-bearing demand deposits, $128.9 million in money market accounts, $21.3 million in savings deposits and $80.2 million in certificates of deposits.

Borrowings

The Company had no outstanding borrowings at March 31, 2024 and at December 31, 2023.

Stockholders’ equity

Total stockholders’ equity on March 31, 2024 increased $1.6 million or 0.66% when compared to December 31, 2023. The increase was primarily due to the $2.4 million increase in retained earnings, consisting of $4.3 million in net income partially offset by $1.9 million of cash dividends recorded during the period. Additionally, stockholders’ equity declined as a result of a stock buyback of 19,000 shares totaling $579 thousand. The ratio of equity to total assets at March 31, 2024 and at December 31, 2023 was 12.2% and 12.5%, respectively.

Liquidity

Our liquidity, represented by cash and cash equivalents, is a product of our operating, investing and financing activities. Our primary sources of funds are deposits, principal repayments of securities and outstanding loans, and funds provided from operations. In addition, we invest excess funds in short-term interest-earnings assets such as overnight deposits or U.S. agency securities, which provide liquidity to meet lending requirements. While scheduled payments from the amortization of loans and securities and short-term investments are relatively predictable sources of funds, general interest rates, economic conditions and competition greatly influence deposit flows and repayments on loans and mortgage-backed securities.

 

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Table of Contents

Liquidity (continued)

As a member of the FHLB we are eligible to borrow funds in an aggregate amount of up to 50% of the Company’s total assets, subject to its collateral requirements. Based on available eligible securities and qualified real estate loan collateral, and a $70.0 million line of credit with the FHLB supporting municipal deposits, the Company had the ability to borrow an additional $148.9 million as of March 31, 2024.

As of March 31, 2024, the Bank was eligible to use the Federal Reserve discount window for borrowings. Based on assets pledged as collateral as of the applicable date, the Bank’s borrowing availability was approximately $10.0 million at March 31, 2024. As of March 31, 2024, the Company had no outstanding advances from the discount window.

The Company is also a shareholder of Atlantic Community Bancshares, Inc., the parent company of Atlantic Community Bankers Bank (“ACBB”). As of March 31, 2024, the Company had available borrowing capacity with ACBB of $10.0 million to provide short-term liquidity generally for a period of not more than fourteen days. No amounts were outstanding under our line of credit with ACBB at March 31, 2024.

We believe that our current sources of funds provide adequate liquidity for our current cash flow needs.

Capital Resources

Regulatory Capital Requirements. Federally insured, state-chartered non-member banks are required to maintain minimum levels of regulatory capital. Current FDIC capital standards require these institutions to satisfy a common equity Tier 1 capital requirement and a Tier 1 capital requirement, a leverage capital requirement and a risk-based capital requirement.

In addition, in order to make capital distributions and pay discretionary bonuses to executive officers without restriction, an institution must also maintain additional common equity in excess of the minimum requirements. This excess is referred to as a capital conservation buffer. At March 31, 2024, the required capital conservation buffer is 2.50%.

Under the risk-based capital requirements, “total” capital (a combination of core and “supplementary” capital) must equal at least 8.0% of “risk-weighted” assets. The FDIC also is authorized to impose capital requirements in excess of these standards on individual institutions on a case-by-case basis. Management believes, as of March 31, 2024, that the Bank meets all capital adequacy requirements to which it is subject and is “well capitalized” under applicable regulations.

The Bank’s actual capital amounts and ratios and the regulatory requirements at March 31, 2024 and December 31, 2023 are presented below:

 

27

Table of Contents

Capital Resources (continued)

 

                               To be well capitalized  
                  For capital conservation     under prompt corrective  
     Actual     buffer requirement     action provision  
     Amount      Ratio     Amount      Ratio     Amount      Ratio  
                  (Dollars in thousands)               

March 31, 2024:

                

Total capital (to risk-weighted assets)

    $ 255,304        14.305 %    $ 187,392        10.500 %    $ 178,468        10.000 % 

Tier 1 capital (to risk-weighted assets)

    $ 236,686        13.262 %    $ 151,698        8.500 %    $ 142,774        8.000 % 

Common equity tier 1 capital (to-risk weighted assets

    $ 236,686        13.262 %    $ 124,928        7.000 %    $ 116,004        6.500 % 

Tier 1 leverage capital (to average assets)

    $ 236,686        11.994 %    $ 128,273        6.500 %    $ 98,672        5.000 % 

December 31, 2023:

                

Total capital (to risk-weighted assets)

    $ 254,030        14.677 %    $ 181,740        10.500 %    $ 173,086        10.000 % 

Tier 1 capital (to risk-weighted assets)

    $ 235,538        13.608 %    $ 147,123        8.500 %    $ 138,469        8.000 % 

Common equity tier 1 capital (to-risk weighted assets

    $ 235,538        13.608 %    $ 121,160        7.000 %    $ 112,506        6.500 % 

Tier 1 leverage capital (to average assets)

    $ 235,538        12.289 %    $ 124,583        6.500 %    $ 95,833        5.000 % 

Comparison of Operating Results for the Three Months Ended March 31, 2024 and 2023

General

The Company reported net income of $4.3 million, or $0.68 per diluted common share, for the first quarter of 2024, compared to net income of $6.1 million, or $0.95 per diluted common share, for the first quarter of 2023. The decrease in net income for the first quarter of 2024 compared to the same period in 2023 was primarily due to increases in interest expense of $8.7 million and $2.1 million in non-interest expense, partially offset by a $7.5 million increase interest income, $611 thousand increase in non-interest income and a reduction of $835 thousand in income tax expense recorded.

Interest income

Interest income increased $7.5 million for the three months ended March 31, 2024, compared to the same period in 2023. Interest income on loans increased $5.0 million due to increases in both the average balance of loans of $175.4 million and the yield of 60 basis points. Other interest and dividend income increased $2.1 million due to an increase in average balance of $153.6 million and an increase in the yield of 90 basis points. Interest on taxable available-for-sale securities increased $286 thousand due to an 120 basis point increase in yield and a $17 thousand increase in the average balance of taxable available-for-sale securities.

Interest expense

Interest expense on deposits increased $8.7 million to $12.6 million for the three-month period ended March 31, 2024, due to increases in both the rate paid on interest-bearing deposits of 209 basis points and in the average balance of interest-bearing deposits of $351.6 million over the same prior year period.

 

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Table of Contents

Provision for credit losses

The Company reduced its provision for credit losses by $79 thousand during the three months ended March 31, 2024 while the allowance for credit losses was $10 thousand higher than at December 31, 2023. The decrease in the ACL in the current quarter consisted of $302 thousand increase recorded to the allowance of credit losses and a reduction to the allowance of $116 thousand in unfunded commitments, which is reported in other liabilities on the Company’s statement of condition. Charge-offs were $283 thousand and recoveries were $107 thousand for the quarter ending March 31, 2024.

Non-interest income

Total non-interest income of $2.0 million for the first quarter of 2024 increased $611 thousand, when compared to the quarter ended March 31, 2023. The increase over the first quarter of 2023 was due to increases in loan fees of $373 thousand, $163 thousand of other non-interest income, and $91 thousand in bank owned life insurance income.

Non-interest expense

Total non-interest expense for the first quarter of 2024 increased $2.1 million or 21.1% from the first quarter of 2023. The increase was due primarily to increases in salaries and employee benefits and occupancy and equipment expenses of $1.1 million and $688 thousand, respectively. This increase can be attributed in part to the acquisition of Noah Bank which occurred in the second quarter of 2023.

Provision for income taxes

For the three months ending March 31, 2024, the Company recorded an income tax expense of $1.1 million, resulting in an effective tax rate of 19.7%, compared to an income tax expense of $1.9 million resulting in an effective tax rate of 23.8% for the quarter ended March 31, 2023. The lower effective tax rate record in the first three months ended March 31, 2024, was attributed to a higher level of tax free investments benefit compared to a lower amount of net income.

Average Balances, Net Interest Income, and Yields Earned and Rates Paid

The following table shows for the three-month period indicated the total dollar amount of interest earned from average interest earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities and the resulting costs, expressed both in dollars and rates. Average yields have been annualized. Tax-exempt incomes and yields have not been adjusted to a tax-equivalent basis.

 

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Table of Contents
     Three Months Ended March 31,              
     2024     2023     Change 2024 vs 2023  
     Average
Balances		      Income/
Expense		      Yield
Rates		     Average
Balances		      Income/
Expense		      Yield
Rates		     Average
Balances		     Yield
Rates		  
                         (Dollars in thousands)                            

Interest-earning assets:

                     

Loans receivable

    $ 1,551,206      $ 24,940        6.47 %    $ 1,375,849      $ 19,894        5.86 %    $ 175,357       0.60 % 

Securities

                     

Taxable available-for-sale

      58,742        564        3.86 %      42,235        278        2.66 %      16,507       1.20 % 

Tax exempt available-for-sale

      40,758        285        2.81 %      41,634        284        2.77 %      (876 )      0.05 % 

Held-to-maturity

      182        2        4.42 %      200        3        5.36 %      (18 )      -0.94 % 

Federal funds sold

      148,069        2,009        5.46 %      8,454        95        4.56 %      139,615       0.90 % 

Other interest earning-assets

      18,954        266        5.64 %      5,001        58        4.77 %      13,953       0.87 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

Total interest-earning assets

      1,817,911      $ 28,066        6.21 %      1,473,373      $ 20,612        5.67 %      344,538       0.54 % 
     

 

 

          

 

 

         

Other non-earnings assets

      140,660             109,354             31,306    
  

 

 

          

 

 

          

 

 

    

Total assets

    $ 1,958,571           $ 1,582,727           $ 375,844    
  

 

 

          

 

 

          

 

 

    

Interest-bearing liabilities

                     

Demand

    $ 242,030      $ 1,193        1.98 %    $ 264,507      $ 551        0.84 %    $ (22,477 )      1.14 % 

Savings

      147,672        921        2.51 %      182,763        417        0.92 %      (35,091 )      1.58 % 

Money markets

      364,150        3,557        3.93 %      268,814        1,158        1.75 %      95,336       2.18 % 

Certificates of deposit

      678,306        6,947        4.12 %      364,470        1,739        1.94 %      313,836       2.18 % 
  

 

 

     

 

 

       

 

 

     

 

 

       

 

 

    

Total deposit

      1,432,158        12,618        3.54 %      1,080,554        3,865        1.45 %      351,604       2.09 % 

Borrowings

      —         —         0.00 %      6,993        86        4.99 %      (6,993 )      -4.99 % 
  

 

 

     

 

 

       

 

 

     

 

 

       

 

 

    

Total interest-bearing liabilities

      1,432,158      $ 12,618        3.54 %      1,087,547      $ 3,951        1.47 %      344,611       2.07 % 
     

 

 

          

 

 

       

 

 

    

Non-interest-bearing deposits

      244,089             242,814             1,275    

Other liabilities

      42,094             28,587             13,507    
  

 

 

          

 

 

          

 

 

    

Total liabilities

      1,718,341             1,358,948             359,393    

Stockholders’ equity

      240,230             223,779             16,451    
  

 

 

          

 

 

          

 

 

    

Total liabilities and stockholder’s equity

    $ 1,958,571           $ 1,582,727           $ 375,844    
  

 

 

          

 

 

          

 

 

    

Net interest-earnings assets

    $ 385,753           $ 385,826           $ (73 )   

Net interest income; interest rate spread

            2.67 %            4.20 %        -1.53 % 
     

 

 

          

 

 

       

 

 

    

Net interest margin

       $ 15,448        3.42 %       $ 16,661        4.59 %    $ (1,213 )      -1.17 % 
     

 

 

          

 

 

       

 

 

    

Net interest margin FTE1

            3.48 %            4.66 %        -1.18 % 

 

1 

Includes federal and state tax effect of tax exempt securities and loans.

 

30

Table of Contents

Rate/Volume Analysis

The following table reflects the changes in our interest income and interest expense segregated into amounts attributable to changes in volume and in yields on interest-earning assets and interest-bearing liabilities during the periods indicated.

 

     2024 vs. 2023
Increase (Decrease) Due to		  
     Rate      Volume      Net  
            (In thousands)         

Interest and dividend income:

         

Loans receivable, including fees

    $ 240      $ 4,806      $ 5,046  

Securities available-for-sale

         

Taxable

      245        41        286  

Tax-exempt

      6        (5 )       1  

Securities held-to-maturity

      1        —         (1 ) 

Federal funds sold

      37        1,877        1,914  

Other interest and dividend income

      21        187        208  
  

 

 

     

 

 

     

 

 

  

Total interest and dividend income

    $ 549      $ 6,907      $ 7,454  
  

 

 

     

 

 

     

 

 

  

Interest expense

         

Demand

    $ 1,074      $ (432 )     $ 642  

Savings

      1,809        (1,305 )       504  

Money markets

      (4,300 )       6,699        2,399  

Certificates of deposit

      390        4,818        5,208  

Borrowings

      —         (86 )       (86 ) 
  

 

 

     

 

 

     

 

 

  

Total interest expense

    $ (1,027 )     $ 9,696      $ 8,667  
  

 

 

     

 

 

     

 

 

  

Change in net interest income

    $ 1,576      $ (2,789 )     $ (1,213 ) 
  

 

 

     

 

 

     

 

 

  

How We Manage Market Risk

Market risk is the risk of loss from adverse changes in market prices and rates. Our market risk arises primarily from interest rate risk which is inherent in our lending, investment and deposit gathering activities. To that end, management actively monitors and manages interest rate risk exposure. In addition to market risk, our primary risk is credit risk on our loan portfolio. We attempt to manage credit risk through our loan underwriting and oversight policies.

The principal objective of our interest rate risk management function is to evaluate the interest rate risk embedded in certain balance sheet accounts, determine the level of risk appropriate given our business strategy, operating environment, capital and liquidity requirements and performance objectives, and manage the risk consistent with approved guidelines. We seek to manage our exposure to risks from changes in interest rates while at the same time trying to improve our net interest spread. We monitor interest rate risk as such risk relates to our operating strategies. We have established an Asset/Liability Committee which is comprised of both Management and members of the Board of Directors. The Asset/Liability Committee meets on a regular basis and is responsible for reviewing our asset/liability policies and interest rate risk position. Both the extent and direction of shifts in interest rates are uncertainties that could have a negative impact on future earnings.

 

31

Table of Contents

Gap Analysis. The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive” and by monitoring the Company’s interest rate sensitivity “gap.” An asset or liability is said to be interest rate sensitive within a specific time period if it will mature or reprice within that time period. The interest rate sensitivity gap is defined as the difference between the amount of interest-earning assets maturing or repricing within a specific time period and the amount of interest-bearing liabilities maturing or repricing within that same time period. A gap is considered positive when the amount of interest rate sensitive assets exceeds the amount of interest rate-sensitive liabilities. A gap is considered negative when the amount of interest rate sensitive liabilities exceeds the amount of interest rate sensitive assets. During a period of rising interest rates, a negative gap would tend to affect adversely net interest income while a positive gap would tend to result in an increase in net interest income. Conversely, during a period of falling interest rates, a negative gap would tend to result in an increase in net interest income while a positive gap would tend to affect adversely net interest income.

The table on the next page sets forth the amounts of our interest-earning assets and interest-bearing liabilities outstanding at March 31, 2024, which we expect, based upon certain assumptions, to reprice or mature in each of the future time periods shown (the “GAP Table”). Except as stated below, the amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the earlier of term to repricing or the contractual maturity of the asset or liability. The table sets forth an approximation of the projected repricing of assets and liabilities at March 31, 2024, based on contractual maturities, anticipated prepayments, and scheduled rate adjustments within a three-month period and subsequent selected time intervals. The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and anticipated prepayments of adjustable-rate loans and fixed-rate loans, and as a result of contractual rate adjustments on adjustable-rate loans.

 

     3 Months or
Less		     More than 3
Months to 1
Year		     More than 1
Year to 3 Years		     More than 3
Years to 5
Years		     More than 5
Years		     Non-Rate
Sensitive		     Total Amount  

(Dollars in thousands)

               

Interest-earning assets: (1)

               

Investment securities

    $ 13,567     $ 14,261     $ 22,117     $ 16,552     $ 64,219     $ (12,450 )    $ 118,266  

Loans receivable

      495,979       214,358       401,487       419,068       35,491       (13,770 )      1,552,613  

Other interest-earnings assets (2)

      159,027       —        —        —        —        13,040       172,067  

Other non-interest assets

      —        —        —        —        —        145,055       145,055  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-earning assets

    $ 668,573     $ 228,619     $ 423,604     $ 435,620     $ 99,710     $ (13,180 )    $ 1,988,001  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest-bearing liabilities:

               

Checking and savings accounts

    $ 364,750     $ —      $ —      $ —      $ —      $ —      $ 364,750  

Money market accounts

      378,652       —        —        —        —        —        378,652  

Certificate accounts

      242,238       272,624       199,163       1,137       —        —        715,162  

Borrowings

      —        —        —        —        —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities

    $ 985,640     $ 272,624     $ 199,163     $ 1,137     $ —      $ —      $ 1,458,564  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest-earning assets less interest-bearing liabilities

    $ (317,067 )    $ (44,005 )    $ 224,441     $ 434,483     $ 99,710     $ (13,180 )    $ 529,437  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cumulative interest-rate sensitivity gap (3)

    $ (317,067 )    $ (361,072 )    $ (136,631 )    $ 297,852     $ 397,562      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

Cumulative interest-rate gap as a percentage of total assets at March 31, 2024

      -15.95 %      -18.16 %      -6.87 %      14.98 %      20.00 %     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

Cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities at March 31, 2024

      67.83 %      71.30 %      90.63 %      120.42 %      127.26 %     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

 

(1)

Interest-earnings assets are included in the period in which the balances are expected to be redeployed and/or repriced as a result of anticipated prepayments, scheduled rate adjustments and contractual maturities.

(2)

Includes interest-bearing bank balances, FHLB Stock and Federal Funds Sold

(3)

Interest-rate sensitivity gap represents the difference between total interest-earning assets and total interest-bearing liabilities.

 

32

Table of Contents

Certain shortcomings are inherent in the method of analysis presented in the foregoing table. For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates. Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates. Additionally, certain assets, such as adjustable-rate loans, have features which restrict changes in interest rates both on a short-term basis and over the life of the asset. Further, in the event of a change in interest rates, prepayment and early withdrawal levels would likely deviate significantly from those assumed in calculating the table. Finally, the ability of many borrowers to service their adjustable-rate loans may decrease in the event of an interest rate increase.

Net Portfolio Value Analysis. Our interest rate sensitivity is also monitored by management through the use of a model which generates estimates of the changes in our net portfolio value (“NPV”) over a range of interest rate scenarios. NPV is the present value of expected cash flows from assets, liabilities, and off-balance sheet contracts. The NPV ratio, under any interest rate scenario, is defined as the NPV in that scenario divided by the market value of assets in the same scenario. The following table sets forth our NPV as of March 31, 2024, and reflects the changes to NPV as a result of immediate and sustained changes in interest rates as indicated.

 

Change in                       NPV as % of Portfolio  
Interest Rates    Net Portfolio Value     Value of Assets  
In Basis Points                                

(Rate Shock)

     Amounts        $ Change       % Change       NPV Ratio       Change   
            (Dollars in thousands)              

300

    $ 260,809      $ (4,296 )      -1.62 %      -5.31 %      -4.72 % 

200

    $ 264,795      $ (310 )      -0.12 %      -3.79 %      -3.20 % 

100

    $ 266,202      $ 1,097       0.41 %      -2.22 %      -1.63 % 

Static

    $ 265,105      $ —          -0.59 %   

(100)

    $ 270,264      $ 5,159       1.95 %      0.90 %      1.49 % 

(200)

    $ 274,379      $ 9,274       3.50 %      2.09 %      2.68 % 

(300)

    $ 265,028      $ (77 )      -0.03 %      3.30 %      3.89 % 

As is the case with the GAP Table, certain shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in NPV require the making of certain assumptions which may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the models presented assume that the composition of our interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Accordingly, although the NPV model provides an indication of interest rate risk exposure at a particular point in time, such model is not intended to and does not provide a precise forecast of the effect of changes in market interest rates on net interest income and will differ from actual results.

 

33

Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company, such as the Company, is not required to provide the information by this Item. Certain market risk disclosure is set forth in Item 2 above under “How We Manage Market Risk.”

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Management, with the participation of the Company’s Chief Executive Officer and its Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule l3a-l5 (e) promulgated under the Exchange Act) as of March 31, 2024. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective as of March 31, 2024 to ensure that the information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in FDIC rules and forms.

Changes in Internal Control Over Financial Reporting

There was no change in the Company’s internal control over financial reporting identified during the quarter ended March 31, 2024, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

34

Table of Contents
PART II–OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 1A. Risk Factors
There have been no material changes to the risk factors set forth under the Part I, Item 1.A. Risk Factors as set forth in the Company’s Annual Report on Form
10-K
for the year ended December 31, 2023.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The Company’s repurchase of shares of common stock for the three months ended March 31, 2024 were as follows:
 
    
Total
Number of
Shares
Purchased
     
Average
Price
Paid Per
Share
     
Total
Number of
Shares
Purchased
as Part of
Publicly
Announced
Plans or
Program
1
     
Maximum Number
of Shares that May
Yet be Purchased
Under Plans or
Programs
1
  
Period
               314,000  
January 1 - 31, 2024
      —       $ —         —         314,000  
February 1 - 29, 2024
      —       $ —         —         314,000  
March 1 - 31, 2024
      19,000      $ 30.44        19,000        295,000  
  
 
 
     
 
 
     
 
 
     
     19,000      $ 30.44        19,000     
  
 
 
     
 
 
     
 
 
     
 
1
 
On August 10, 2023, the Company announced a stock repurchase program to repurchase up to 314,000 shares of common stock, approximately 5% of the Company’s outstanding shares of common stock, over a period of time necessary to complete such repurchases.
Item 3. Defaults upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
During the fiscal quarter ended March 31, 2024, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule
10b5-1(c)
or any
“non-Rule
10b5-1
trading arrangement”.
 
35

Table of Contents

Item 6. Exhibits

 

Exhibit
Number

   

Description

 2.1    Agreement and Plan of Merger, dated January 18, 2024, by and between Princeton Bancorp, Inc. and Cornerstone Financial Corporation (incorporated by reference to the registrant’s Current Report on Form 8-K filed with the SEC on January 18, 2024)*
31.1    Rule 13a-14(a) Certification on the Principal Executive Officer
31.2    Rule 13a-14(a) Certification on the Principal Financial Officer
32    Section 1350 Certifications
101.INS    Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document
101.SCH    InlineXBRL Taxonomy Extension Schema Document
101.CAL    InlineXBRL Taxonomy Extension Calculation Linkbase Document
101.DEF    InlineXBRL Taxonomy Extension Definition Linkbase Document
101.LAB    InlineXBRL Taxonomy Extension Label LinkbaseDocument
101.PRE    InlineXBRL Taxonomy Extension Label LinkbaseDocument
104    Cover Page Interactive Data File (embedded within the Inline XBRL document

 

*

The schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish a copy of such schedules, or any section thereof, to the SEC upon request.

 

36

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

     

Princeton Bancorp, Inc.

Date: May 14, 2024     By:   /s/ Edward Dietzler
     

Edward Dietzler

     

Chief Executive Officer and President

(Principal Executive Officer)

    By:  

/s/ George Rapp

     

George Rapp

     

Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

 

37

Exhibit 31.1

RULE 13A-14(a) CERTIFICATION

OF THE PRINCIPAL EXECUTIVE OFFICER

I, Edward Dietzler, Chief Executive Officer and President of Princeton Bancorp, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Princeton Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, considering the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 14, 2024       /s/ Edward Dietzler
      Edward Dietzler
      Chief Executive Officer and President
      (Principal Executive Officer)

Exhibit 31.2

RULE 13A-14(a) CERTIFICATION

OF THE PRINCIPAL FINANCIAL OFFICER

I, George Rapp, Executive Vice President and Chief Financial Officer of Princeton Bancorp, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Princeton Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 14, 2024       /s/ George Rapp
      George Rapp
      Executive Vice President and Chief Financial Officer
      (Principal Financial and Accounting Officer)

 

Exhibit 32

SECTION 1350 CERTIFICATIONS

In connection with the Quarterly Report of Princeton Bancorp, Inc. on Form 10-Q for the period ended March 31, 2024 as filed with the United States Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Princeton Bancorp, Inc.

 

      /s/ Edward Dietzler
      Edward Dietzler
      Chief Executive Officer and President
      (Principal Executive Officer)
      /s/ George Rapp
      George Rapp
      Executive Vice President and Chief Financial Officer
      (Principal Financial and Accounting Officer)
Date: May 14, 2024      
v3.24.1.1.u2
Cover Page - shares
 3 Months Ended
Mar. 31, 2024
May 10, 2024
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2024  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Entity Registrant Name PRINCETON BANCORP, INC.  
Entity Central Index Key 0001913971  
Current Fiscal Year End Date --12-31  
Entity Incorporation, State or Country Code PA  
Entity File Number 001-41589  
Entity Tax Identification Number 88-4268702  
Entity Address, Address Line One 183 Bayard Lane  
Entity Address, City or Town Princeton  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 08540  
City Area Code 609  
Local Phone Number 921-1700  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Title of 12(b) Security Common stock, no par value  
Trading Symbol BPRN  
Security Exchange Name NASDAQ  
Entity Common Stock, Shares Outstanding   6,319,361
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
ASSETS    
Cash and due from banks $ 13,040 $ 17,156
Interest-earning bank balances 18,196 17,376
Federal funds sold 140,831 116,025
Total cash and cash equivalents 172,067 150,557
Securities available-for-sale, at fair value 118,098 91,352
Securities held-to-maturity (fair value $199 and $200, at March 31, 2024 and December 31, 2023, respectively) 167 193
Loans receivable, net of deferred fees and costs 1,571,231 1,548,335
Less: allowance for credit losses (18,618) (18,492)
Loans receivable, net 1,552,613 1,529,843
Bank-owned life insurance 59,240 58,860
Premises and equipment, net 14,115 14,453
Accrued interest receivable 6,405 6,089
Restricted investment in bank stock 1,398 1,410
Deferred taxes, net 11,605 11,512
Goodwill 8,853 8,853
Core deposit intangible 1,301 1,422
Operating lease right-of-use asset 22,726 23,398
Equity method investments 9,051 8,296
Other assets 10,362 10,259
TOTAL ASSETS 1,988,001 1,916,497
Deposits:    
Non-interest-bearing 247,056 249,282
Interest-bearing 1,458,564 1,386,459
Total deposits 1,705,620 1,635,741
Accrued interest payable 11,831 9,162
Operating lease liability 23,643 24,280
Other liabilities 5,099 7,103
TOTAL LIABILITIES 1,746,193 1,676,286
STOCKHOLDERS' EQUITY    
Common stock, no par value; 15,000,000 shares authorized, 6,320,356 shares issued and outstanding at March 31, 2024; at December 31, 2023, 6,299,331 shares issued and outstanding 0 0
Paid-in capital 98,312 98,291
Treasury Stock, at cost of 19,000 shares at March 31, 2024 (579) 0
Retained earnings 151,860 149,414
Accumulated other comprehensive loss (7,785) (7,494)
TOTAL STOCKHOLDERS' EQUITY 241,808 240,211
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,988,001 $ 1,916,497
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Held to maturity debt securities at fair value $ 199 $ 200
Common stock par or stated value per share $ 0 $ 0
Common Stock, Shares Authorized 15,000,000 15,000,000
Common stock shares issued 6,320,356 6,299,331
Common stock shares outstanding 6,320,356 6,299,331
Treasury share common stock 19,000  
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
INTEREST AND DIVIDEND INCOME    
Loans receivable, including fees $ 24,940 $ 19,894
Securities available-for-sale:    
Taxable 564 278
Tax-exempt 286 284
Securities held-to-maturity 2 3
Other interest and dividend income 2,274 153
TOTAL INTEREST AND DIVIDEND INCOME 28,066 20,612
INTEREST EXPENSE    
Deposits 12,618 3,865
Borrowings 0 86
TOTAL INTEREST EXPENSE 12,618 3,951
NET INTEREST INCOME 15,448 16,661
Provision for credit losses 186 265
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 15,262 16,396
NON-INTEREST INCOME    
Income from bank-owned life insurance 381 290
Fees and service charges 432 448
Loan fees, including preypayment penalties 724 351
Other 448 285
TOTAL NON-INTEREST INCOME 1,985 1,374
NON-INTEREST EXPENSE    
Salaries and employee benefits 6,520 5,399
Occupancy and equipment 2,029 1,341
Professional fees 524 465
Data processing and communications 1,160 1,300
Federal deposit insurance 273 190
Advertising and promotion 142 110
Office expense 119 97
Core deposit intangible 120 135
Other 949 735
TOTAL NON-INTEREST EXPENSE 11,836 9,772
INCOME BEFORE INCOME TAX EXPENSE 5,411 7,998
INCOME TAX EXPENSE 1,066 1,901
NET INCOME $ 4,345 $ 6,097
Earnings per common share-basic $ 0.69 $ 0.97
Earnings per common share-diluted $ 0.68 $ 0.95
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
NET INCOME $ 4,345 $ 6,097
Other comprehensive income (loss)    
Unrealized gains (losses) arising during period on securities available-for-sale (434) 1,739
Net unrealized gain (loss) (434) 1,739
Tax effect 143 (498)
Total other comprehensive income (loss) (291) 1,241
COMPREHENSIVE INCOME $ 4,054 $ 7,338
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock [Member]
Paid-in Capital [Member]
Treasury Stock, Common [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive (Loss) Income [Member]
Beginning balance at Dec. 31, 2022 $ 219,601 $ 34,547 $ 81,291 $ (19,452) $ 131,488 $ (8,273)
Net income 6,097       6,097  
Other comprehensive loss 1,241         1,241
Change in accounting principle (284)       (284)  
Formation of Princeton Bancorp, Inc.   (34,547) 15,095 19,452    
Stock options exercised 297 0 297      
Dividends declared (1,843)       (1,843)  
Stock-based compensation expense 164   164      
Dividend reinvestment plan   0 33   (33)  
Ending balance at Mar. 31, 2023 225,273 0 96,880 0 135,425 (7,032)
Beginning balance at Dec. 31, 2023 240,211 0 98,291 0 149,414 (7,494)
Net income 4,345       4,345  
Other comprehensive loss (291)         (291)
Stock options exercised 34 0 34      
Share redemption for tax withholding on restricted stock vesting (249)   (249)      
Dividends declared (1,866)       (1,866)  
Purchase of treasury stock (579)     (579)    
Stock-based compensation expense 203   203      
Dividend reinvestment plan   0 33   (33)  
Ending balance at Mar. 31, 2024 $ 241,808 $ 0 $ 98,312 $ (579) $ 151,860 $ (7,785)
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]    
Stock issued during the period stock options exercised 2,450 16,307
Common stock dividend declared per share paid $ 0.3 $ 0.3
Treasury stock shares acquired 19,000  
Stock issued during period shares dividend reinvestment plan 1,018 958
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 4,345 $ 6,097
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for credit losses 186 265
Depreciation and amortization 409 305
Stock-based compensation expense 203 164
Amortization of premiums and accretion of discount on securities 6 11
Accretion of net deferred loan fees and costs (37) (534)
Increase in cash surrender value of bank-owned life insurance (380) (290)
Deferred income tax 98 (793)
Amortization of core deposit intangible 121 136
Increase (decrease) in accrued interest receivable and other assets (152) 2,052
Increase (decrease) in accrued interest payable and other liabilities 28 (227)
NET CASH PROVIDED BY OPERATING ACTIVITIES 4,827 7,186
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchases of available-for-sale securities (28,898) (345)
Principal repayments and maturities on securities available-for-sale 1,254 1,144
Maturities, calls and principal repayments of securities held-to-maturity 26 2
Net increase in loans (22,859) (18,840)
Purchases of premises and equipment (71) (245)
Redemption (purchases) of restricted bank stock 12 (1,553)
NET CASH USED IN INVESTMENT ACTIVITIES (50,536) (19,837)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net increase (decrease) in deposits 69,879 (55,630)
Proceeds from overnight borrowings 0 34,500
Cash dividends (1,899) (1,876)
Dividend reinvestment program 33 33
Share Redemption for Tax Witholding on Restricted Stock Vesting (249) 0
Purchase of treasury stock (579) 0
Proceeds from exercise of stock options 34 297
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 67,219 (22,676)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 21,510 (35,327)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 150,557 53,351
CASH AND CASH EQUIVALENTS, END OF PERIOD 172,067 18,024
SUPPLEMENTARY CASH FLOWS INFORMATION:    
Interest paid 9,949 2,818
Income taxes paid 724 653
Increase in ROU leases 1,808 9,799
Reclass of paid-in capital related to holding company formation 0 15,095
Reclass of treasury stock related to holding company formation 0 19,452
Reclass of common stock related to holding company formation $ 0 $ (34,547)
v3.24.1.1.u2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net Income (Loss) $ 4,345 $ 6,097
v3.24.1.1.u2
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.1.u2
Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 1 – Summary of Significant Accounting Policies
Organization and Nature of Operations
The Bank of Princeton (the “Bank”) was incorporated on March 5, 2007, under the laws of the State of New Jersey and is a New Jersey state-chartered banking institution. The Bank was granted its bank charter on April 17, 2007, commenced operations on April 23, 2007, and is a full-service bank providing personal and business lending and deposit services. As a state-chartered bank, the Bank is subject to regulation by the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation (“FDIC”). The area served by the Bank, through its 29 branches, is generally an area within an approximate
50-mile
radius of Princeton, NJ, including parts of Burlington, Camden, Gloucester, Hunterdon, Mercer, Middlesex, Ocean, and Somerset Counties in New Jersey, and additional areas in portions of Philadelphia, Montgomery, and Bucks Counties in Pennsylvania. The Bank also has two retail branches and conducts loan origination activities in select areas of New York.
The Bank offers traditional retail banking services,
one-to-four-family
residential mortgage loans, multi-family and commercial mortgage loans, construction loans, commercial business loans and consumer loans, including home equity loans and lines of credit.
On January 10, 2023, Princeton Bancorp, Inc., a Pennsylvania corporation formed by the Bank (the “Company”), acquired all the outstanding stock of the Bank in a corporate reorganization. As a result, the Bank became the sole direct subsidiary of the Company, the Company became the holding company for the Bank and the stockholders of the Bank became stockholders of the Company. As of March 31, 2024, the Company had 211 total employees and 209 full-time equivalent employees.
On May 19, 2023, the Company completed the acquisition of Noah Bank, a Pennsylvania chartered state bank headquartered in Elkins Park, Pennsylvania that primarily served the Philadelphia, North New Jersey, and New York City markets. On that date, the Company acquired 100% of the outstanding common stock of Noah Bank for cash, and Noah Bank was merged with and into the Bank.
On January 18, 2024, the Company announced that it has entered into a definitive agreement and plan of merger pursuant to which the Company will acquire Cornerstone Financial Corporation (“Cornerstone”), the parent company of Cornerstone Bank, Mount Laurel, New Jersey in a transaction valued at approximately $17.9 million. Under the terms of the merger agreement, which has been approved by the boards of directors of both companies, Cornerstone will merge with, into and under the charter of the Company. In the merger, each share of Cornerstone common stock outstanding will be exchanged for 0.24 shares of the Company, subject to adjustment, having a value of $8.16 per share based on the $34.00 closing price of the Company common stock on January 17, 2024. Each share of Cornerstone’s preferred stock outstanding will be exchanged for its stated value of $1,000 per share. The transaction is subject to receipt of all required banking regulatory approvals, Cornerstone stockholder approval and certain financial and other contingencies. The transaction is expected to close in the second or third quarter of 2024.
Basis of Financial Statement Presentation
The unaudited consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries: Bayard Lane, LLC, Bayard Properties, LLC, 112 Fifth Avenue, LLC, TBOP Delaware Investment Company and TBOP REIT, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation.
The unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission and the FDIC. Accordingly, they do not include all the information and disclosures required by GAAP for annual financial statements. In management’s opinion, the unaudited consolidated financial statements contain all adjustments, which include normal and recurring adjustments necessary for a fair presentation of the financial position and results of operations for the interim periods presented. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on
Form 10-K
for the year ended December 31, 2023.
 
Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because of uncertainties associated with estimating the amounts, timing and likelihood of possible outcomes, actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of acquired assets and liabilities, and evaluation of the potential impairment of goodwill.
Management believes that the allowance for credit losses is adequate as of March 31, 2024. While management uses current information to recognize losses on loans, future additions to the allowance for credit losses may be necessary based on changes in economic conditions in the market area or other factors.
In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to effect certain changes that result in additions to the allowance based on their judgments about information available to them at the time of their examinations.
Reclassifications
Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation.
Recent Accounting Pronouncements Not Yet Adopted
The Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)
No. 2023-07
in November 2023, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this ASU require improved reportable segment information on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024. Early adoption is permitted. The company has only one reportable segment, ASU
2023-07
is not expected to have a significant impact on the Company’s consolidated financial statements.
ASU
No. 2023-09
In December 2023, the FASB issued ASU
No. 2023-09,
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in the ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.
ASU 2023-06, “Disclosure improvements” Amends disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. The effective dates will depend, in part, on whether an entity is already subject to the SEC’s current disclosure requirements. This ASU is not expected to have a material impact on the Company’s consolidated financial statements.
v3.24.1.1.u2
Earnings Per Share
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Earnings Per Share
Note 2 - Earnings Per Share
Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income by the weighted average number of common shares outstanding for the period adjusted to include the effect of outstanding stock options, if dilutive, using the treasury stock method. Shares issued during any period are weighted for the portion of the period they were outstanding.
 
The following schedule presents earnings per share data for the three-month periods ended March 31, 2024, and 2023 (in thousands, except per share data):
    
Three months ended
March 31,
  
    
2024
     
2023
  
Net income applicable to common stock
    $ 4,345      $ 6,097  
Weighted average number of common shares outstanding
      6,328        6,257  
  
 
 
     
 
 
  
Basic earnings per share
    $ 0.69      $ 0.97  
  
 
 
     
 
 
  
Net income applicable to common stock
    $ 4,345      $ 6,097  
Weighted average number of common shares outstanding
      6,328        6,257  
Dilutive effect on common shares outstanding
      90        129  
  
 
 
     
 
 
  
Weighted average number of diluted common shares outstanding
      6,418        6,386  
  
 
 
     
 
 
  
Diluted earnings per share
    $ 0.68      $ 0.95  
  
 
 
     
 
 
  
The following schedule presents stock options granted but not exercised and the amount of share that were anti-dilutive because the weighted average exercise price equaled or exceeded the estimated fair value of our common stock for the three-months period ended March 31, 2024, and 2023:
 
    
Three months ended March 31,
  
    
2024
     
2023
  
     Options      Weighted Ave
Exercise Price		      Options      Weighted Ave
Exercise Price		  
Options to purchase
      245,633      $ 21.38        374,496      $ 22.01  
Anti-dilutive
      86,431      $ 33.19        —       $ —   
v3.24.1.1.u2
Investment Securities
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Note 3 – Investment Securities
The following summarizes the amortized cost and fair value of securities
available-for-sale
at March 31, 2024 and December 31, 2023 with gross unrealized gains and losses therein:
 
    
March 31, 2024
  
    
Amortized
Cost
     
Gross

Unrealized
Gains
     
Gross

Unrealized

Losses
     
Fair Value
  
            (In thousands)         
Available-for-sale
         
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 71,266      $ 153      $ (6,578 )     $ 64,841  
U.S. government agency securities
      11,260        —         (1,078 )       10,182  
Obligations of state and political subdivisions
      44,056        2        (3,378 )       40,680  
Small business association (SBA) securities
      2,392        5        (2 )       2,395  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 128,974      $ 160      $ (11,036 )     $ 118,098  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
    
December 31, 2023
  
    
Amortized

Cost
     
Gross

Unrealized

Gains
     
Gross

Unrealized

Losses
     
Fair Value
  
            (In thousands)         
Available-for-sale
         
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 48,399      $ 219      $ (5,984 )     $ 42,634  
U.S. government agency securities
      6,260        —         (969 )       5,291  
Obligations of state and political subdivisions
      44,059        12        (3,262 )       40,809  
Small business association (SBA) securities
      2,617        2        (1 )       2,618  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 101,335      $ 233      $ (10,216 )     $ 91,352  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related securities
available-for-sale
at March 31, 2024 and December 31, 2023 are as follows:
 
    
Less than 12 Months
    
More than 12 Months
    
Total
  
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
  
                  (In thousands)               
March 31, 2024
             
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 7,494      $ (114 )    $ 30,206      $ (6,464 )    $ 37,700      $ (6,578 ) 
U.S. government agency securities
      4,998        (2 )      5,184        (1,076 )      10,182        (1,078 ) 
Obligations of state and political subdivisions
      6,788        (108 )      31,196        (3,270 )      37,984        (3,378 ) 
Small business association (SBA) securities
      816        (2 )      —         —        816        (2 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Total
    $ 20,096      $ (226 )    $ 66,586      $ (10,810 )    $ 86,682      $ (11,036 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
 
    
Less than 12 Months
    
More than 12 Months
    
Total
  
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
  
                  (In thousands)               
December 31, 2023
             
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 2,858      $ (14 )    $ 31,398      $ (5,970 )    $ 34,256      $ (5,984 ) 
U.S. government agency securities
      —         —        5,291        (969 )      5,291        (969 ) 
Obligations of state and political subdivisions
      5,117        (102 )      30,646        (3,160 )      35,763        (3,262 ) 
Small business association (SBA) securities
      723        (1 )      —         —        723        (1 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
   $ 8,698      $ (117 )    $ 67,335      $ (10,099 )    $ 76,033      $ (10,216 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
The amortized cost and fair value of securities
available-for-sale
at March 31, 2024 by contractual maturity are shown below. Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties:
 
    
Amortized
Cost
     
Fair Value
  
     (In thousands)  
Due in one year or less
    $ 285      $ 284  
Due after one year through five years
      8,454        8,263  
Due after five years through ten years
      34,437        32,065  
Due after ten years
      12,140        10,250  
Mortgage-backed securities (GSEs)
      71,266        64,841  
Small business association (SBA) securities
      2,392        2,395  
  
 
 
     
 
 
  
   $ 128,974      $ 118,098  
  
 
 
     
 
 
  
 
Proceeds from calls and maturities of securities
available-for-sale
were not significant for the three-month period ended March 31, 2024.
The Company uses a defined CECL methodology for allowance for credit losses on its investment securities
available-for-sale.
The Company did not have an allowance for credit losses on its investment securities
available-for-sale
as of March 31, 2024.
The Company’s securities primarily consist of the following types of instruments; U.S. guaranteed mortgage-backed securities, U.S guaranteed agency bonds, state and political subdivision issued bonds and mortgage related securities guaranteed by the SBA We believe it is reasonable to expect that the securities with a credit guarantee of the U.S. government will have a
zero-credit
loss. Therefore, no reserve was recorded for U.S. guaranteed securities or bonds at March 31, 2024. The state and political subdivision securities carry a minimum investment rating of A by either Moody’s or Standard and Poor. Some of the smaller municipalities also have insurance to cover the Company in the event of default. Therefore, the Company did not project a credit loss and therefore no reserve was recorded as of March 31, 2024.
At March 31, 2024, the Company’s
available-for-sale
securities portfolio consisted of approximately 227 securities, of which 164
available-for-sale
securities were in an unrealized loss position for more than twelve months and 30
available-for-sale
securities were in a loss position for less than twelve months. The
available-for-sale
securities in a loss position for more than twelve months consisted of 98 municipal securities aggregating $31.2 million with a loss of $3.3 million, 62 mortgage-backed
securities-GSE
aggregating $30.2 million with a loss of $6.5 million and four agency securities aggregating $5.2 million with a loss of $1.1 million. The Company does not intend to sell these securities, and it is not more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. Unrealized losses primarily relate to interest rate fluctuations and not credit concerns.
There are no securities pledged as of March 31, 2024, and December 31, 2023.
v3.24.1.1.u2
Loans Receivable
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Loans Receivable
Note 4 – Loans Receivable
Loans receivable, net at March 31, 2024 and December 31, 2023 were comprised of the following:
 
    
March 31,
2024
     
December 31,
2023
  
     (In thousands)  
Commercial real estate
    $ 1,162,741      $ 1,142,864  
Commercial and industrial
      45,930        50,961  
Construction
      321,009        310,187  
Residential first-lien mortgage
      36,565        38,040  
Home equity/consumer
      7,311        8,081  
  
 
 
     
 
 
  
Total loans
      1,573,556        1,550,133  
Deferred fees and costs
      (2,325 )       (1,798 ) 
  
 
 
     
 
 
  
Loans, net
    $ 1,571,231      $ 1,548,335  
  
 
 
     
 
 
  
The Company did not purchase any loans during the three months ended March 31, 2024, or 2023.
 
Upon CECL, the Company uses the discounted cash flow methodology in determining the appropriate quantitative adjustments, which projects future losses, based on historical and peer loss data, as part of the allowance for credit losses (“ACL”) reserve. Qualitative adjustments include and consider changes in national, regional, and local economic and business conditions, an assessment of the lending environment, including underwriting standards, and other factors affecting credit quality. There were no significant changes to the Company’s ACL methodology for the quarter ended March 31, 2024.
The following table presents the components of the allowance for credit losses:
 
    
March 31,
2024
     
December 31,
2023
  
     (In thousands)  
Allowance for credit losses - loans
    $ (18,618 )     $ (18,492 ) 
Allowance for credit losses - off balance sheet
      (473 )       (589 ) 
  
 
 
     
 
 
  
   $ (19,091 )     $ (19,081 ) 
  
 
 
     
 
 
  
The following table presents nonaccrual loans by segment of the loan portfolio as of March 31, 2024 and December 31, 2023:
 
    
March 31, 2024
     
December 31, 2023
  
    
With a

Related

Allowance
     
Without a

Related

Allowance
     
With a

Related

Allowance
     
Without a

Related

Allowance
  
            (In thousands)         
Commercial real estate
    $ 110      $ 1,235      $ —       $ 4,485  
Commercial and industrial
      40      $ 596        —         2,116  
Construction
      —         —         —         —   
Residential first-lien mortgage
      —         134        —         107  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total nonaccrual loans
    $ 150      $ 1,965      $ —       $ 6,708  
  
 
 
     
 
 
     
 
 
     
 
 
  
The calculation of the allowance for credit losses does not include any accrued interest receivable. The Company’s policy is to write off any interest not collected after 90 days. During the three-month period ending March 31, 2024, the Company wrote off $310 thousand in accrued interest receivable for loans, compared to $130 
thousand for the three-month period ending March 31, 2023. Accrued interest receivable related to loans, at March 31, 2024, and March 31, 2023, was
 $5.6 million and $4.3 million, respectively. The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loan receivables by the length of time a recorded payment is past due. The following table presents the segments of the loan portfolio, summarized by the past due status as of March 31, 2024:
 
    
30-59

Days
Past
Due
     
60-89

Days
Past
Due
     
>90
Days
Past
Due
     
Total Past
Due
     
Current
     
Total
Loans
Receivable
     
Loans
Receivable
>90 Days
and
Accruing
  
                          (In thousands)                       
Commercial real estate
    $ 356      $ 841      $ 1,345      $ 2,542      $ 1,160,199      $ 1,162,741      $ —   
Commercial and industrial
      232        274        636        1,142        44,788        45,930        —   
Construction
      —         —         —         —         321,009        321,009        —   
Residential first-lien mortgage
      27        —         134        161        36,404        36,565        —   
Home equity/consumer
      —         —         —         —         7,311        7,311        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 615      $ 1,115      $ 2,115      $ 3,845      $ 1,569,711      $ 1,573,556      $ —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2023:
 
    
30-59

Days
Past
Due
     
60-89

Days
Past
Due
     
>90
Days
Past
Due
     
Total Past
Due
     
Current
     
Total
Loans
Receivable
     
Loans
Receivable
>90 Days
and
Accruing
  
                          (In thousands)                       
Commercial real estate
    $ 159      $ —       $ 4,485      $ 4,644      $ 1,138,220      $ 1,142,864      $ —   
Commercial and industrial
      303        —         2,116        2,419        48,542        50,961        —   
Construction
      —         —         —         —         310,187        310,187        —   
Residential first-lien mortgage
      —         —         107        107        37,933        38,040        —   
Home equity/consumer
      29        —         —         29        8,052        8,081        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 491      $ —       $ 6,708      $ 7,199      $ 1,542,934      $ 1,550,133      $ —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. The Company evaluates risk ratings on an ongoing basis and assigns one of the following ratings: pass, special mention, substandard and doubtful. The Company engages a third party to review its assessment on a semiannual basis. The Company classifies residential and consumer loans as either performing or nonperforming based on payment status.
 
 
The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of March 31, 2024.
 
     2024      2023      2022      2021      2020      Prior      Revolving
Loans		     Total  
     (Dollars in thousands)  
Commercial real estate
                       
Pass
    $ 25,851      $ 134,137      $ 244,778      $ 116,312      $ 61,828      $ 574,323      $ 5,512     $ 1,162,741  
Special mention
      —         —         —         —         —         —         —        —   
Substandard
      —         —         —         —         —         —         —        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total commercial real estate
      25,851        134,137        244,778        116,312        61,828        574,323        5,512       1,162,741  
Current period gross
charge-offs
                     (237 )         (237 ) 
Commercial and industrial
                       
Pass
      653        563        1,615        11,702        148        12,158        12,230       39,069  
Special mention
      —         —         —         —         —         4,508        —        4,508  
Substandard
      —         —         —         —         500        1,853        —        2,353  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total commercial and industrial
      653        563        1,615        11,702        648        18,519        12,230       45,930  
Current period gross
charge-offs
                     (46 )         (46 ) 
Construction
                       
Pass
      6,050        5,832        17,809        83,849        11,371        7,391        188,707       321,009  
Special mention
      —         —         —         —         —         —         —        —   
Substandard
      —         —         —         —         —         —         —        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total construction
      6,050        5,832        17,809        83,849        11,371        7,391        188,707       321,009  
Residential first-lien mortgage
                       
Performing
      —         —         966        3,805        2,816        28,846        —        36,433  
Nonperforming
      —         —         —         —         —         132        —        132  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total residential first-lien mortgage
      —         —         966        3,805        2,816        28,978        —        36,565  
Home equity/consumer
                       
Performing
      223        546        1,371        298        3        1,893        2,949       7,283  
Nonperforming
      —         —         28        —         —         —         —        28  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total home equity/consumer
      223        546        1,399        298        3        1,893        2,949       7,311  
Total
                       
Pass
      32,777        141,078        266,539        215,966        76,166        624,611        209,398       1,566,535  
Special mention
      —         —         —         —         —         4,508        —        4,508  
Substandard
      —         —         28        —         500        1,985        —        2,513  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total loans
    $ 32,777      $ 141,078      $ 266,567      $ 215,966      $ 76,666      $ 631,104      $ 209,398     $ 1,573,556  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
 
F-14
The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of December 31, 2023.
 
     2023      2022      2021      2020      2019      Prior      Revolving
Loans		      Total  
     (Dollars in thousands)  
Commercial real estate
                        
Pass
    $ 132,834      $ 233,436      $ 116,836      $ 53,574      $ 175,991      $ 417,417      $ 5,551      $ 1,135,639  
Special mention
      —         —         —         —         —         2,740        —         2,740  
Substandard
      —         —         —         —         —         4,485        —         4,485  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total commercial real estate
      132,834        233,436        116,836        53,574        175,991        424,642        5,551        1,142,864  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
1,718
 
      
 
1,718
 
Commercial and industrial
                        
Pass
      2,098        2,304        11,925        1,962        1,133        13,954        15,045        48,421  
Special mention
      —         —         —         —         —         500        —         500  
Substandard
      —         —         —         —         —         2,040        —         2,040  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total commercial and industrial
      2,098        2,304        11,925        1,962        1,133        16,494        15,045        50,961  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
55
 
      
 
55
 
Construction
                        
Pass
      5,832        18,379        91,774        19,216        —         8,484        166,502        310,187  
Special mention
      —         —         —         —         —         —         —         —   
Substandard
      —         —         —         —         —         —         —         —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total construction
      5,832        18,379        91,774        19,216        —         8,484        166,502        310,187  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
148
 
      
 
148
 
Residential first-lien mortgage
                        
Performing
      —         979        4,792        2,839        1,545        27,778        —         37,933  
Non performing
      —         —         —         —         —         107        —         107  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total residential first-lien mortgage
      —         979        4,792        2,839        1,545        27,885        —         38,040  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
2
 
      
 
2
 
Home equity/consumer
                        
Performing
      1,153        1,016        1,172        —         —         1,606        3,134        8,081  
Nonperforming
      —         —         —         —         —         —         —         —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total home equity/consumer
      1,153        1,016        1,172        —         —         1,606        3,134        8,081  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
                        
Pass/performing
      141,917        256,114        226,499        77,591        178,669        469,239        190,232        1,540,261  
Special mention
      —         —         —         —         —         3,240        —         3,240  
Substandard /non performing
      —         —         —         —         —         6,632        —         6,632  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total loans
    $ 141,917      $ 256,114      $ 226,499      $ 77,591      $ 178,669      $ 479,111      $ 190,232      $ 1,550,133  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
The following table presents the allowance for credit losses on loans receivable at and for the three months ended March 31, 2024:
 
     Commercial
real estate		    
Commercial
and
industrial
    
Construction
    
Residential
first-lien
mortgage
    
Home equity/
consumer
    
Total
  
                 (In thousands)              
Allowance for credit losses:
             
Beginning balance
    $ 16,047     $ 488     $ 1,145     $ 725     $ 87     $ 18,492  
Provision
1
     631       (31 )      (124 )      (153 )      (21 )      302  
Charge-offs
      (237 )      (46 )      —        —        —        (283 ) 
Recoveries
      5       102       —        —        —        107  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
    $ 16,446     $ 513     $ 1,021     $ 572     $ 66     $ 18,618  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
1
 
The provision for credit losses on the Consolidated Statement of Income is $186,000 comprising of a $302,000 thousand increase to the ACL for loans and a $116,000 reduction to the reserve for unfunded liabilities.
 
The following table presents the allowance for credit losses on loans receivable at and for the three months ended March 31, 2023:
 
    
Commercial
real estate
    
Commercial
and
industrial
    
Construction
    
Residential
first-lien
mortgage
    
Home equity/
consumer
     
PPP
     
Unallocated
    
Total
  
     (In thousands)  
Allowance for credit losses:
                   
Beginning balance
    $ 8,654     $ 271     $ 6,289     $ 236     $ 45      $ —       $ 966     $ 16,461  
CECL adoption
      1,384       (73 )      (1,269 )      428       195        —         (966 )      (301 ) 
Provision
1
      (4 )      16       329       (10 )      13        —         —        344  
Charge-offs
      —        —        —        —        —         —         —        —   
Recoveries
      3       —        —        —        —         —         —        3  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
    
 
 
  
Total
    $ 10,037     $ 214     $ 5,349     $ 654     $ 253      $ —       $ —      $ 16,507  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
    
 
 
  
 
1
 
The provision for credit losses on the Consolidated Statement of Income is $265,000 comprising a $344,000 increase to the allowance for credit losses on loans and a $79,000 reduction to the reserve for unfunded liabilities.
As of March 31, 2024, the Company had six loans totaling $2.1 million that were individually analyzed for potential credit loss and all the loans have real estate as credit support. Compared to December 31, 2023, the Company had nine loans totaling $6.7 million that were individually analyzed for potential credit loss.
Occasionally, the Company will modify the contractual terms of loans to a borrower experiencing financial difficulties as a way to mitigate loss, proactively work with borrowers in financial difficulty, or to comply with regulations regarding the treatment of certain bankruptcy filing and discharge situations. Typically, such concessions may consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, extension of additional credit base on receipt of adequate collateral, or a deferment or reduction of payments (principal or interest) which materially alters the Company’s position or significantly extends the note’s maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan’s origination. When principal forgiveness is provided, the amount forgiven is charged off against the allowance for credit losses on loans.
v3.24.1.1.u2
Deposits
 3 Months Ended
Mar. 31, 2024
Deposits [Abstract]  
Deposits
Note 5 – Deposits
The components of deposits were as follows:
 
    
March 31,

2024
    
December 31,

2023
  
     (Dollars in thousands)  
Demand,
non-interest-bearing
checking
    $ 247,056        14.48 %    $ 249,282        15.24 % 
Demand, interest-bearing checking
      215,364        12.63 %      247,939        15.16 % 
Savings
      149,386        8.76 %      146,484        8.96 % 
Money market
      378,652        22.20 %      354,005        21.64 % 
Time deposits, $250,000 and over
      179,479        10.52 %      173,614        10.61 % 
Time deposits, other
      535,683        31.41 %      464,417        28.39 % 
  
 
 
     
 
 
    
 
 
     
 
 
  
   $ 1,705,620        100.00 %    $ 1,635,741        100.00 % 
  
 
 
     
 
 
    
 
 
     
 
 
  
v3.24.1.1.u2
Borrowings
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Borrowings
Note 6 – Borrowings
At March 31, 2024, and December 31, 2023, the Company had no borrowings outstanding.
v3.24.1.1.u2
Fair Value Measurements and Disclosure
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Disclosure
Note 7 – Fair Value Measurements and Disclosures
The Company follows the guidance on fair value measurements now codified as FASB ASC Topic 820,
Fair Value Measurement
(“Topic 820”)
.
 Fair value measurements are not adjusted for transaction costs. Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
Management uses its best judgment in estimating the fair value of the Company’s financial instruments, however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transactions on the dates indicated. The estimated fair value amounts have been measured as of their respective
period-end
and have not been
re-evaluated
or updated for the purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each
period-end.
The fair value measurement hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level
 1
: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level
 2
: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.
Level
 3
: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).
An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2024 were as follows:
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
March 31,
2024
  
     (In thousands)  
Mortgage-backed securities
-U.S.
government sponsored enterprise (GSEs)
    $ —       $ 64,841      $ —       $ 64,841  
U.S. government agency securities
      —         10,182        —         10,182  
Obligations of state and political subdivisions
      —         40,680        —         40,680  
Small Business Association (SBA) securities
      —         2,395        —         2,395  
  
 
 
     
 
 
     
 
 
     
 
 
  
Securities
available-for-sale
at fair value
    $ —       $ 118,098      $ —       $ 118,098  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy, used at December 31, 2023 were as follows:
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
December 31,
2023
  
     (In thousands)  
Mortgage-backed securities
-U.S.
government sponsored enterprise (GSEs)
    $ —       $ 42,634      $ —       $ 42,634  
U.S. government agency securities
         5,291        —         5,291  
Obligations of state and political subdivisions
      —         40,809        —         40,809  
Small Business Association (SBA) securities
      —         2,618        —         2,618  
  
 
 
     
 
 
     
 
 
     
 
 
  
Securities
available-for-sale
at fair value
    $ —       $ 91,352      $ —       $ 91,352  
  
 
 
     
 
 
     
 
 
     
 
 
  
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2024, were as follows.
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
March 31,
2024
  
     (In thousands)  
Collateral dependent loan
    $ —

 
    $ —       $ 95      $ 95  
  
 
 
     
 
 
     
 
 
     
 
 
  
   $ —


   $ —       $ 95      $ 95  
  
 
 
     
 
 
     
 
 
     
 
 
  
The following table presents quantitative information using Level 3 fair value measurements at March 31, 2024.
 
Description
   
March 31,
2024
     
Valuation
Technique
     
Unobservable
Input
     
Range
(Weighted
Average)
  
     (Dollars in thousands)  
           Discount        6.0 % 
Collateral dependent loan
    $ 95        Collateral
1
 		      adjustment        (6.0 %) 
 
1
 
Value based on third party offer to purchase note from the Bank.
 
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2023, were as follows:
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
December 31
2023
  
     (In thousands)  
Collateral dependent loan
    $ —       $ —       $ 4,485      $ 4,485  
  
 
 
     
 
 
     
 
 
     
 
 
  
   $ —       $ —       $ 4,485      $ 4,485  
  
 
 
     
 
 
     
 
 
     
 
 
  
The following table presents quantitative information using Level 3 fair value measurements at December 31, 2023.
 
Description
   
December 31,
2023
     
Valuation
Technique
     
Unobservable
Input
     
Range
(Weighted
Average)
  
     (Dollars in thousands)  
           Discount        0.0 % 
Collateral dependent loan
    $ 4,485        Collateral
1
 		      adjustment        (0.0 %) 
 
1
 
Value based on third party offer to purchase note from the Bank.
There were no transfers between fair value hierarchy levels during the three months ended March 31, 2024 or 2023. The Company’s policy is to recognize transfers between levels as of the end of the reporting period.
The following methods and assumptions were used by the Company in estimating fair value disclosures:
Investment Securities
The fair value of securities
available-for-sale
(carried at fair value) and
held-to-maturity
(carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Level 2 debt securities are valued by a third-party pricing service commonly used in the banking industry, and not adjusted by management. Level 2 fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, live trading levels, trade execution date, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.
Individual evaluated loans (generally carried at fair value)
Individual loans carried at fair value are those loans in which the Company has measured for a reserve and are generally based on the fair value of the related loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds, discounted for estimated selling costs or other factors the Company determines will impact collection of proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.
 
The carrying amounts and estimated fair value of financial instruments at March 31, 2024 are as follows.
 
    
March 31, 2024
  
    
Carrying
Amount
     
Estimated
Fair Value
     
Level 1
     
Level 2
     
Level 3
  
     (In thousands)  
Financial Assets:
   
Cash and cash equivalents
    $ 172,067      $ 172,067      $ 172,067      $ —       $ —   
Securities
available-for-sale
at fair value
      118,098        118,098        —         118,098        —   
Securities
held-to-maturity
      167        167        —         167        —   
Loans receivable, net
      1,552,613        1,495,787        —         —         1,495,787  
Restricted investments in bank stock
      1,398        1,398        —         1,398        —   
Accrued interest receivable
      6,405        6,405        —         6,405        —   
Equity method investments
      9,051        9,051        —         5,900        3,151  
Mortgage servicing rights
      1,383        1,383        —         1,383        —   
Financial Liabilities:
               
Deposits
    $ 1,705,620        1,705,620      $ —       $ 1,705,620      $ —   
Accrued interest payable
      11,831        11,831        —         11,831        —   
The carrying amounts and estimated fair value of financial instruments at December 31, 2023 are as follows:
 
    
December 31, 2023
  
    
Carrying
Amount
     
Estimated
Fair Value
     
Level 1
     
Level 2
     
Level 3
  
     (In thousands)  
Financial Assets:
   
Cash and cash equivalents
    $ 150,557      $ 150,557      $ 150,557      $ —       $ —   
Securities AFS
      91,352        91,352        —         91,352        —   
Securities HTM
      193        192        —         192        —   
Loans receivable, net
      1,529,843        1,425,814        —         —         1,425,814  
Restricted bank stock
      1,410        1,410        —         1,410        —   
Accrued interest receivable
      6,089        6,089        —         6,089        —   
Equity method investments
      8,296        8,296        —         5,900        2,396  
Financial Liabilities
               
Deposits
      1,635,741        1,581,762        —         1,581,762        —   
Accrued interest payable
      9,162        9,162        —         9,162        —   
The fair value of cash and cash equivalents, restricted bank stock, accrued interest receivable, and accrued interest payable are measured at the Company’s carrying amount.
The fair value of loans, deposits and borrowings are measured on a discounted basis using similar rates and terms.
The Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSR is obtained through independent third-party valuations.
Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).
Limitations
The fair value estimates are made at a discrete point in time based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors.
 
These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Further, the foregoing estimates may not reflect the actual amount that could be realized if all or substantially all the financial instruments were offered for sale. This is due to the fact that no market exists for a sizable portion of the loan, deposit and
off-balance
sheet instruments.
In addition, the fair value estimates are based on existing on and
off-balance
sheet financial instruments without attempting to value anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.
Finally, reasonable comparability between financial institutions may not be practical due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values.
v3.24.1.1.u2
Leases
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases
Note 8 – Leases
Leases (Topic 842) establishes a right of use model that requires a lessee to record a right of use asset (“ROU”) and a lease liability for all leases with terms longer than 12 months. The Company is obligated under 26 operating lease agreements for 25 branches and its corporate offices with terms extending through 2039. The Company’s lease agreements include options to renew at the Company’s discretion. The extensions are reasonably certain to be exercised, therefore they were considered in the calculations of the ROU asset and lease liability.
The following table represents the classification of the Company’s right of use and lease liability.
 
    
Statement of Financial

Condition Location
     
Three Months Ended
March 31, 2024
     
Year ended
December 31, 2023
  
            (In thousands)         
Operating Lease Right of Use Asset:
         
Gross carrying amount
       $ 23,398      $ 16,026  
Increased asset from new leases
         1,808        9,799  
Accumulated amortization
         (2,480 )       (2,427 ) 
     
 
 
     
 
 
  
Net book value
     
Operating lease right-of-use asset
      $ 22,726      $ 23,398  
     
 
 
     
 
 
  
Operating Lease Liability:
         
Lease liability
      Operating lease liability      $ 23,643      $ 24,280  
     
 
 
     
 
 
  
As of March 31, 2024, the weighted-average remaining lease terms for operating leases was 11.6 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.48%. The Company used FHLB fixed rate advances or at the time the lease was placed in service for the term most closely aligning with remaining lease term.
 
 
Future minimum payments under operating leases with terms longer than 12 months are as follows at March 31, 2024 (in thousands):
 
Twelve months ended March 31,
   
2024
    $ 3,501  
2025
      3,453  
2026
      3,269  
2027
      2,992  
2028
      2,779  
Thereafter
      15,748  
  
 
 
  
Total future operating lease payment
      31,742  
Amounts representing interest
      (8,099 ) 
  
 
 
  
Present value of net future lease payments
    $ 23,643  
  
 
 
  
 
    
Three Months Ended
March 31,
  
    
2024
     
2023
  
     (In thousands)  
Lease cost:
      
Operating lease
    $ 987      $ 665  
Short-term lease cost
      48        2  
  
 
 
     
 
 
  
Total lease cost
    $ 1,035      $ 667  
  
 
 
     
 
 
  
Other information:
      
Cash paid for amounts included in the measurement of lease liabilities
    $ 898      $ 585  
  
 
 
     
 
 
  
v3.24.1.1.u2
Goodwill and Core Deposit Intangible
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Core Deposit Intangible
Note 9 – Goodwill and Core Deposit Intangible
In accordance with ASC 805, the Company recorded $8.9 million of goodwill along with a core deposit intangible asset of $4.2 million of for the five branches acquired in 2019. The Noah Bank acquisition that occurred in 2023 did not generate any goodwill, but the Bank recorded $98 thousand in core deposit intangible asset. The core deposit intangible asset is being amortized over 10 years, using the sum of the year’s digits. Except as set forth below, GAAP requires that goodwill be tested for impairment annually (with the Company’s annual evaluation occurring on May 31 of each year) or more frequently if impairment indicators arise. The reporting unit was determined to be our community banking operations, which is our only operating segment.
ASC Topic
350-20
 
guidance requires an annual review of the fair value of a Reporting
Unit that has goodwill in order to determine if it is more likely than not (that is, a likelihood of more than
 
50
%)
that the fair value of a Reporting Unit is less than its carrying amount, including goodwill. A qualitative factor test can be performed to determine whether it is necessary to perform a quantitative goodwill impairment test. If this qualitative test determines it is not more likely than not (less than
 
50
%
probability) that the fair value of the Reporting Unit is less than the Carrying Value, then the Company does not have to perform a quantitative test and goodwill can be considered not impaired. The Company performed its annual review at May 31, 2023 and determined that it was more than 50% probable the fair value of the Reporting Unit exceeds the then Carrying Value, therefore a quantitative test was not required as of May 31, 2023.
The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows:
 
    
Goodwill
     
Core Deposit
Intangible
  
     (In thousands)  
Balance at December 31, 2023
    $ 8,853      $ 1,422  
Amortization expense
      —         (121 ) 
  
 
 
     
 
 
  
Balance at March 31, 2024
    $ 8,853      $ 1,301  
  
 
 
     
 
 
  
As of March 31, 2024, the remaining current fiscal year and future fiscal periods amortization for the core deposit intangible is (in thousands):
 
2024
      314  
2025
      353  
2026
      274  
2027
      195  
Thereafter
      165  
  
 
 
  
Total
    $ 1,301  
  
 
 
  
v3.24.1.1.u2
Subsequent Events
 3 Months Ended
Mar. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events
Note 10 – Subsequent Events
On April 23, 2024, during the Company’s annual shareholder meeting, the Board of Directors approved an amendment to the Company’s articles of incorporation to authorize a class of preferred stock consisting of 2,000,000 shares.
On April 24, 2024, the Board of Directors declared a cash dividend of $0.30 per share of common stock to shareholders of record on May 10, 2024, payable on May 31, 2024.
v3.24.1.1.u2
Risk and Uncertainties
 3 Months Ended
Mar. 31, 2024
Risks and Uncertainties [Abstract]  
Risk and Uncertainties
Note 11 – Risk and Uncertainties
The occurrence of events which adversely affect the global, national, and regional economies may have a negative impact on our business. Like other financial institutions, our business relies upon the ability and willingness of our customers to transact business with us, including banking, borrowing and other financial transactions. A strong and stable economy at each of the local, federal, and global levels is often a critical component of consumer confidence and typically correlates positively with our customers’ ability and willingness to transact certain types of business with us. Local and global events outside of our control which disrupt the New Jersey, Pennsylvania, New York, United States and/or global economy may therefore negatively impact our business and financial condition.
Government economic programs intended to backstop and bolster the economy through the pandemic have ended, and the nation’s economy has entered an inflationary phase. The Consumer Price Index has risen to levels not experienced since the 1980s while the labor market remains very tight, contributing additional inflationary pressure. To address the inflation problem, the Federal Reserve has reversed course on its previously accommodative monetary policies and aggressively increased short-term interest rates. These actions are intended to slow overall economic activity and risk entering the economy into a recession. Regional conflicts around the world, including between Russia and Ukraine, have exacerbated pandemic-related supply chain issues, upset numerous global markets including energy and certain raw materials, and generally added to economic uncertainty and geopolitical instability. Any or all could have negative downstream effects on the Company’s operating results, the extent of which is indeterminable at this time.
v3.24.1.1.u2
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Basis of Financial Statement Presentation
Basis of Financial Statement Presentation
The unaudited consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries: Bayard Lane, LLC, Bayard Properties, LLC, 112 Fifth Avenue, LLC, TBOP Delaware Investment Company and TBOP REIT, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation.
The unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission and the FDIC. Accordingly, they do not include all the information and disclosures required by GAAP for annual financial statements. In management’s opinion, the unaudited consolidated financial statements contain all adjustments, which include normal and recurring adjustments necessary for a fair presentation of the financial position and results of operations for the interim periods presented. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on
Form 10-K
for the year ended December 31, 2023.
Estimates
Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because of uncertainties associated with estimating the amounts, timing and likelihood of possible outcomes, actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of acquired assets and liabilities, and evaluation of the potential impairment of goodwill.
Management believes that the allowance for credit losses is adequate as of March 31, 2024. While management uses current information to recognize losses on loans, future additions to the allowance for credit losses may be necessary based on changes in economic conditions in the market area or other factors.
In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to effect certain changes that result in additions to the allowance based on their judgments about information available to them at the time of their examinations.
Reclassifications
Reclassifications
Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation.
Recent Accounting Pronouncements Not Yet Adopted
Recent Accounting Pronouncements Not Yet Adopted
The Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)
No. 2023-07
in November 2023, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this ASU require improved reportable segment information on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024. Early adoption is permitted. The company has only one reportable segment, ASU
2023-07
is not expected to have a significant impact on the Company’s consolidated financial statements.
ASU
No. 2023-09
In December 2023, the FASB issued ASU
No. 2023-09,
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in the ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.
ASU 2023-06, “Disclosure improvements” Amends disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. The effective dates will depend, in part, on whether an entity is already subject to the SEC’s current disclosure requirements. This ASU is not expected to have a material impact on the Company’s consolidated financial statements.
v3.24.1.1.u2
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Summary of earnings per share
The following schedule presents earnings per share data for the three-month periods ended March 31, 2024, and 2023 (in thousands, except per share data):
    
Three months ended
March 31,
  
    
2024
     
2023
  
Net income applicable to common stock
    $ 4,345      $ 6,097  
Weighted average number of common shares outstanding
      6,328        6,257  
  
 
 
     
 
 
  
Basic earnings per share
    $ 0.69      $ 0.97  
  
 
 
     
 
 
  
Net income applicable to common stock
    $ 4,345      $ 6,097  
Weighted average number of common shares outstanding
      6,328        6,257  
Dilutive effect on common shares outstanding
      90        129  
  
 
 
     
 
 
  
Weighted average number of diluted common shares outstanding
      6,418        6,386  
  
 
 
     
 
 
  
Diluted earnings per share
    $ 0.68      $ 0.95  
  
 
 
     
 
 
  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following schedule presents stock options granted but not exercised and the amount of share that were anti-dilutive because the weighted average exercise price equaled or exceeded the estimated fair value of our common stock for the three-months period ended March 31, 2024, and 2023:
 
    
Three months ended March 31,
  
    
2024
     
2023
  
     Options      Weighted Ave
Exercise Price		      Options      Weighted Ave
Exercise Price		  
Options to purchase
      245,633      $ 21.38        374,496      $ 22.01  
Anti-dilutive
      86,431      $ 33.19        —       $ —   
v3.24.1.1.u2
Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Summary of amortized cost and estimated fair value
The following summarizes the amortized cost and fair value of securities
available-for-sale
at March 31, 2024 and December 31, 2023 with gross unrealized gains and losses therein:
 
    
March 31, 2024
  
    
Amortized
Cost
     
Gross

Unrealized
Gains
     
Gross

Unrealized

Losses
     
Fair Value
  
            (In thousands)         
Available-for-sale
         
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 71,266      $ 153      $ (6,578 )     $ 64,841  
U.S. government agency securities
      11,260        —         (1,078 )       10,182  
Obligations of state and political subdivisions
      44,056        2        (3,378 )       40,680  
Small business association (SBA) securities
      2,392        5        (2 )       2,395  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 128,974      $ 160      $ (11,036 )     $ 118,098  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
    
December 31, 2023
  
    
Amortized

Cost
     
Gross

Unrealized

Gains
     
Gross

Unrealized

Losses
     
Fair Value
  
            (In thousands)         
Available-for-sale
         
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 48,399      $ 219      $ (5,984 )     $ 42,634  
U.S. government agency securities
      6,260        —         (969 )       5,291  
Obligations of state and political subdivisions
      44,059        12        (3,262 )       40,809  
Small business association (SBA) securities
      2,617        2        (1 )       2,618  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 101,335      $ 233      $ (10,216 )     $ 91,352  
  
 
 
     
 
 
     
 
 
     
 
 
  
Summary of fair value of related securities available-for-sale
The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related securities
available-for-sale
at March 31, 2024 and December 31, 2023 are as follows:
 
    
Less than 12 Months
    
More than 12 Months
    
Total
  
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
  
                  (In thousands)               
March 31, 2024
             
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 7,494      $ (114 )    $ 30,206      $ (6,464 )    $ 37,700      $ (6,578 ) 
U.S. government agency securities
      4,998        (2 )      5,184        (1,076 )      10,182        (1,078 ) 
Obligations of state and political subdivisions
      6,788        (108 )      31,196        (3,270 )      37,984        (3,378 ) 
Small business association (SBA) securities
      816        (2 )      —         —        816        (2 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Total
    $ 20,096      $ (226 )    $ 66,586      $ (10,810 )    $ 86,682      $ (11,036 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
 
    
Less than 12 Months
    
More than 12 Months
    
Total
  
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
    
Fair

Value
     
Unrealized

Losses
  
                  (In thousands)               
December 31, 2023
             
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)
    $ 2,858      $ (14 )    $ 31,398      $ (5,970 )    $ 34,256      $ (5,984 ) 
U.S. government agency securities
      —         —        5,291        (969 )      5,291        (969 ) 
Obligations of state and political subdivisions
      5,117        (102 )      30,646        (3,160 )      35,763        (3,262 ) 
Small business association (SBA) securities
      723        (1 )      —         —        723        (1 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
   $ 8,698      $ (117 )    $ 67,335      $ (10,099 )    $ 76,033      $ (10,216 ) 
  
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Summary of securities available-for-sale by contractual maturity
The amortized cost and fair value of securities
available-for-sale
at March 31, 2024 by contractual maturity are shown below. Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties:
 
    
Amortized
Cost
     
Fair Value
  
     (In thousands)  
Due in one year or less
    $ 285      $ 284  
Due after one year through five years
      8,454        8,263  
Due after five years through ten years
      34,437        32,065  
Due after ten years
      12,140        10,250  
Mortgage-backed securities (GSEs)
      71,266        64,841  
Small business association (SBA) securities
      2,392        2,395  
  
 
 
     
 
 
  
   $ 128,974      $ 118,098  
  
 
 
     
 
 
  
v3.24.1.1.u2
Loans Receivable (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Summary of loans receivable net
Loans receivable, net at March 31, 2024 and December 31, 2023 were comprised of the following:
 
    
March 31,
2024
     
December 31,
2023
  
     (In thousands)  
Commercial real estate
    $ 1,162,741      $ 1,142,864  
Commercial and industrial
      45,930        50,961  
Construction
      321,009        310,187  
Residential first-lien mortgage
      36,565        38,040  
Home equity/consumer
      7,311        8,081  
  
 
 
     
 
 
  
Total loans
      1,573,556        1,550,133  
Deferred fees and costs
      (2,325 )       (1,798 ) 
  
 
 
     
 
 
  
Loans, net
    $ 1,571,231      $ 1,548,335  
  
 
 
     
 
 
  
Summary of components of allowance for credit losses
The following table presents the components of the allowance for credit losses:
 
    
March 31,
2024
     
December 31,
2023
  
     (In thousands)  
Allowance for credit losses - loans
    $ (18,618 )     $ (18,492 ) 
Allowance for credit losses - off balance sheet
      (473 )       (589 ) 
  
 
 
     
 
 
  
   $ (19,091 )     $ (19,081 ) 
  
 
 
     
 
 
  
Summary of nonaccrual loans by segment of loan portfolio
The following table presents nonaccrual loans by segment of the loan portfolio as of March 31, 2024 and December 31, 2023:
 
    
March 31, 2024
     
December 31, 2023
  
    
With a

Related

Allowance
     
Without a

Related

Allowance
     
With a

Related

Allowance
     
Without a

Related

Allowance
  
            (In thousands)         
Commercial real estate
    $ 110      $ 1,235      $ —       $ 4,485  
Commercial and industrial
      40      $ 596        —         2,116  
Construction
      —         —         —         —   
Residential first-lien mortgage
      —         134        —         107  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total nonaccrual loans
    $ 150      $ 1,965      $ —       $ 6,708  
  
 
 
     
 
 
     
 
 
     
 
 
  
Summary of performance and credit quality of loan portfolio The following table presents the segments of the loan portfolio, summarized by the past due status as of March 31, 2024:
 
    
30-59

Days
Past
Due
     
60-89

Days
Past
Due
     
>90
Days
Past
Due
     
Total Past
Due
     
Current
     
Total
Loans
Receivable
     
Loans
Receivable
>90 Days
and
Accruing
  
                          (In thousands)                       
Commercial real estate
    $ 356      $ 841      $ 1,345      $ 2,542      $ 1,160,199      $ 1,162,741      $ —   
Commercial and industrial
      232        274        636        1,142        44,788        45,930        —   
Construction
      —         —         —         —         321,009        321,009        —   
Residential first-lien mortgage
      27        —         134        161        36,404        36,565        —   
Home equity/consumer
      —         —         —         —         7,311        7,311        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 615      $ 1,115      $ 2,115      $ 3,845      $ 1,569,711      $ 1,573,556      $ —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2023:
 
    
30-59

Days
Past
Due
     
60-89

Days
Past
Due
     
>90
Days
Past
Due
     
Total Past
Due
     
Current
     
Total
Loans
Receivable
     
Loans
Receivable
>90 Days
and
Accruing
  
                          (In thousands)                       
Commercial real estate
    $ 159      $ —       $ 4,485      $ 4,644      $ 1,138,220      $ 1,142,864      $ —   
Commercial and industrial
      303        —         2,116        2,419        48,542        50,961        —   
Construction
      —         —         —         —         310,187        310,187        —   
Residential first-lien mortgage
      —         —         107        107        37,933        38,040        —   
Home equity/consumer
      29        —         —         29        8,052        8,081        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 491      $ —       $ 6,708      $ 7,199      $ 1,542,934      $ 1,550,133      $ —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Summary of loans by year of origination, internally assigned credit grades and risk characteristics
The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of March 31, 2024.
 
     2024      2023      2022      2021      2020      Prior      Revolving
Loans		     Total  
     (Dollars in thousands)  
Commercial real estate
                       
Pass
    $ 25,851      $ 134,137      $ 244,778      $ 116,312      $ 61,828      $ 574,323      $ 5,512     $ 1,162,741  
Special mention
      —         —         —         —         —         —         —        —   
Substandard
      —         —         —         —         —         —         —        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total commercial real estate
      25,851        134,137        244,778        116,312        61,828        574,323        5,512       1,162,741  
Current period gross
charge-offs
                     (237 )         (237 ) 
Commercial and industrial
                       
Pass
      653        563        1,615        11,702        148        12,158        12,230       39,069  
Special mention
      —         —         —         —         —         4,508        —        4,508  
Substandard
      —         —         —         —         500        1,853        —        2,353  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total commercial and industrial
      653        563        1,615        11,702        648        18,519        12,230       45,930  
Current period gross
charge-offs
                     (46 )         (46 ) 
Construction
                       
Pass
      6,050        5,832        17,809        83,849        11,371        7,391        188,707       321,009  
Special mention
      —         —         —         —         —         —         —        —   
Substandard
      —         —         —         —         —         —         —        —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total construction
      6,050        5,832        17,809        83,849        11,371        7,391        188,707       321,009  
Residential first-lien mortgage
                       
Performing
      —         —         966        3,805        2,816        28,846        —        36,433  
Nonperforming
      —         —         —         —         —         132        —        132  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total residential first-lien mortgage
      —         —         966        3,805        2,816        28,978        —        36,565  
Home equity/consumer
                       
Performing
      223        546        1,371        298        3        1,893        2,949       7,283  
Nonperforming
      —         —         28        —         —         —         —        28  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total home equity/consumer
      223        546        1,399        298        3        1,893        2,949       7,311  
Total
                       
Pass
      32,777        141,078        266,539        215,966        76,166        624,611        209,398       1,566,535  
Special mention
      —         —         —         —         —         4,508        —        4,508  
Substandard
      —         —         28        —         500        1,985        —        2,513  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total loans
    $ 32,777      $ 141,078      $ 266,567      $ 215,966      $ 76,666      $ 631,104      $ 209,398     $ 1,573,556  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
 
F-14
The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of December 31, 2023.
 
     2023      2022      2021      2020      2019      Prior      Revolving
Loans		      Total  
     (Dollars in thousands)  
Commercial real estate
                        
Pass
    $ 132,834      $ 233,436      $ 116,836      $ 53,574      $ 175,991      $ 417,417      $ 5,551      $ 1,135,639  
Special mention
      —         —         —         —         —         2,740        —         2,740  
Substandard
      —         —         —         —         —         4,485        —         4,485  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total commercial real estate
      132,834        233,436        116,836        53,574        175,991        424,642        5,551        1,142,864  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
1,718
 
      
 
1,718
 
Commercial and industrial
                        
Pass
      2,098        2,304        11,925        1,962        1,133        13,954        15,045        48,421  
Special mention
      —         —         —         —         —         500        —         500  
Substandard
      —         —         —         —         —         2,040        —         2,040  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total commercial and industrial
      2,098        2,304        11,925        1,962        1,133        16,494        15,045        50,961  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
55
 
      
 
55
 
Construction
                        
Pass
      5,832        18,379        91,774        19,216        —         8,484        166,502        310,187  
Special mention
      —         —         —         —         —         —         —         —   
Substandard
      —         —         —         —         —         —         —         —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total construction
      5,832        18,379        91,774        19,216        —         8,484        166,502        310,187  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
148
 
      
 
148
 
Residential first-lien mortgage
                        
Performing
      —         979        4,792        2,839        1,545        27,778        —         37,933  
Non performing
      —         —         —         —         —         107        —         107  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total residential first-lien mortgage
      —         979        4,792        2,839        1,545        27,885        —         38,040  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Current period gross charge-offs
                  
 
2
 
      
 
2
 
Home equity/consumer
                        
Performing
      1,153        1,016        1,172        —         —         1,606        3,134        8,081  
Nonperforming
      —         —         —         —         —         —         —         —   
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total home equity/consumer
      1,153        1,016        1,172        —         —         1,606        3,134        8,081  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
                        
Pass/performing
      141,917        256,114        226,499        77,591        178,669        469,239        190,232        1,540,261  
Special mention
      —         —         —         —         —         3,240        —         3,240  
Substandard /non performing
      —         —         —         —         —         6,632        —         6,632  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total loans
    $ 141,917      $ 256,114      $ 226,499      $ 77,591      $ 178,669      $ 479,111      $ 190,232      $ 1,550,133  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Summary of allowance for credit losses on loans receivables
The following table presents the allowance for credit losses on loans receivable at and for the three months ended March 31, 2024:
 
     Commercial
real estate		    
Commercial
and
industrial
    
Construction
    
Residential
first-lien
mortgage
    
Home equity/
consumer
    
Total
  
                 (In thousands)              
Allowance for credit losses:
             
Beginning balance
    $ 16,047     $ 488     $ 1,145     $ 725     $ 87     $ 18,492  
Provision
1
     631       (31 )      (124 )      (153 )      (21 )      302  
Charge-offs
      (237 )      (46 )      —        —        —        (283 ) 
Recoveries
      5       102       —        —        —        107  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
    $ 16,446     $ 513     $ 1,021     $ 572     $ 66     $ 18,618  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
1
 
The provision for credit losses on the Consolidated Statement of Income is $186,000 comprising of a $302,000 thousand increase to the ACL for loans and a $116,000 reduction to the reserve for unfunded liabilities.
 
The following table presents the allowance for credit losses on loans receivable at and for the three months ended March 31, 2023:
 
    
Commercial
real estate
    
Commercial
and
industrial
    
Construction
    
Residential
first-lien
mortgage
    
Home equity/
consumer
     
PPP
     
Unallocated
    
Total
  
     (In thousands)  
Allowance for credit losses:
                   
Beginning balance
    $ 8,654     $ 271     $ 6,289     $ 236     $ 45      $ —       $ 966     $ 16,461  
CECL adoption
      1,384       (73 )      (1,269 )      428       195        —         (966 )      (301 ) 
Provision
1
      (4 )      16       329       (10 )      13        —         —        344  
Charge-offs
      —        —        —        —        —         —         —        —   
Recoveries
      3       —        —        —        —         —         —        3  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
    
 
 
  
Total
    $ 10,037     $ 214     $ 5,349     $ 654     $ 253      $ —       $ —      $ 16,507  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
    
 
 
  
 
1
 
The provision for credit losses on the Consolidated Statement of Income is $265,000 comprising a $344,000 increase to the allowance for credit losses on loans and a $79,000 reduction to the reserve for unfunded liabilities.
v3.24.1.1.u2
Deposits (Tables)
 3 Months Ended
Mar. 31, 2024
Deposits [Abstract]  
Summary of components of deposits
The components of deposits were as follows:
 
    
March 31,

2024
    
December 31,

2023
  
     (Dollars in thousands)  
Demand,
non-interest-bearing
checking
    $ 247,056        14.48 %    $ 249,282        15.24 % 
Demand, interest-bearing checking
      215,364        12.63 %      247,939        15.16 % 
Savings
      149,386        8.76 %      146,484        8.96 % 
Money market
      378,652        22.20 %      354,005        21.64 % 
Time deposits, $250,000 and over
      179,479        10.52 %      173,614        10.61 % 
Time deposits, other
      535,683        31.41 %      464,417        28.39 % 
  
 
 
     
 
 
    
 
 
     
 
 
  
   $ 1,705,620        100.00 %    $ 1,635,741        100.00 % 
  
 
 
     
 
 
    
 
 
     
 
 
  
v3.24.1.1.u2
Leases (Tables)
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Summary of operating leases of lessee
The following table represents the classification of the Company’s right of use and lease liability.
 
    
Statement of Financial

Condition Location
     
Three Months Ended
March 31, 2024
     
Year ended
December 31, 2023
  
            (In thousands)         
Operating Lease Right of Use Asset:
         
Gross carrying amount
       $ 23,398      $ 16,026  
Increased asset from new leases
         1,808        9,799  
Accumulated amortization
         (2,480 )       (2,427 ) 
     
 
 
     
 
 
  
Net book value
     
Operating lease right-of-use asset
      $ 22,726      $ 23,398  
     
 
 
     
 
 
  
Operating Lease Liability:
         
Lease liability
      Operating lease liability      $ 23,643      $ 24,280  
     
 
 
     
 
 
  
Summary of lease cost
    
Three Months Ended
March 31,
  
    
2024
     
2023
  
     (In thousands)  
Lease cost:
      
Operating lease
    $ 987      $ 665  
Short-term lease cost
      48        2  
  
 
 
     
 
 
  
Total lease cost
    $ 1,035      $ 667  
  
 
 
     
 
 
  
Other information:
      
Cash paid for amounts included in the measurement of lease liabilities
    $ 898      $ 585  
  
 
 
     
 
 
  
Summary of lessee operating lease liability maturity
Future minimum payments under operating leases with terms longer than 12 months are as follows at March 31, 2024 (in thousands):
 
Twelve months ended March 31,
   
2024
    $ 3,501  
2025
      3,453  
2026
      3,269  
2027
      2,992  
2028
      2,779  
Thereafter
      15,748  
  
 
 
  
Total future operating lease payment
      31,742  
Amounts representing interest
      (8,099 ) 
  
 
 
  
Present value of net future lease payments
    $ 23,643  
  
 
 
  
v3.24.1.1.u2
Goodwill and Core Deposit Intangible (Tables)
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of carrying amount of goodwill and core deposit intangible assets
The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows:
 
    
Goodwill
     
Core Deposit
Intangible
  
     (In thousands)  
Balance at December 31, 2023
    $ 8,853      $ 1,422  
Amortization expense
      —         (121 ) 
  
 
 
     
 
 
  
Balance at March 31, 2024
    $ 8,853      $ 1,301  
  
 
 
     
 
 
  
Summary of future fiscal periods amortization for the core deposit intangible
As of March 31, 2024, the remaining current fiscal year and future fiscal periods amortization for the core deposit intangible is (in thousands):
 
2024
      314  
2025
      353  
2026
      274  
2027
      195  
Thereafter
      165  
  
 
 
  
Total
    $ 1,301  
  
 
 
  
v3.24.1.1.u2
Fair Value Measurements and Disclosure (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Summary Of Financial Assets Measured At Fair Value On Recurring Basis
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2024 were as follows:
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
March 31,
2024
  
     (In thousands)  
Mortgage-backed securities
-U.S.
government sponsored enterprise (GSEs)
    $ —       $ 64,841      $ —       $ 64,841  
U.S. government agency securities
      —         10,182        —         10,182  
Obligations of state and political subdivisions
      —         40,680        —         40,680  
Small Business Association (SBA) securities
      —         2,395        —         2,395  
  
 
 
     
 
 
     
 
 
     
 
 
  
Securities
available-for-sale
at fair value
    $ —       $ 118,098      $ —       $ 118,098  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy, used at December 31, 2023 were as follows:
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
December 31,
2023
  
     (In thousands)  
Mortgage-backed securities
-U.S.
government sponsored enterprise (GSEs)
    $ —       $ 42,634      $ —       $ 42,634  
U.S. government agency securities
         5,291        —         5,291  
Obligations of state and political subdivisions
      —         40,809        —         40,809  
Small Business Association (SBA) securities
      —         2,618        —         2,618  
  
 
 
     
 
 
     
 
 
     
 
 
  
Securities
available-for-sale
at fair value
    $ —       $ 91,352      $ —       $ 91,352  
  
 
 
     
 
 
     
 
 
     
 
 
  
Summary Of Financial Assets Measured At Fair Value On NonRecurring Basis
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2024, were as follows.
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
March 31,
2024
  
     (In thousands)  
Collateral dependent loan
    $ —

 
    $ —       $ 95      $ 95  
  
 
 
     
 
 
     
 
 
     
 
 
  
   $ —


   $ —       $ 95      $ 95  
  
 
 
     
 
 
     
 
 
     
 
 
  
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2023, were as follows:
 
Description
   
(Level 1)
Quoted Price
in Active
Markets for
Identical
Assets
     
(Level 2)
Significant
Other
Observable
Inputs
     
(Level 3)
Significant
Unobservable
Inputs
     
Total Fair
Value
December 31
2023
  
     (In thousands)  
Collateral dependent loan
    $ —       $ —       $ 4,485      $ 4,485  
  
 
 
     
 
 
     
 
 
     
 
 
  
   $ —       $ —       $ 4,485      $ 4,485  
  
 
 
     
 
 
     
 
 
     
 
 
  
Summary Of Quantitative Information Using Level 3 Fair Value Measurements
The following table presents quantitative information using Level 3 fair value measurements at March 31, 2024.
 
Description
   
March 31,
2024
     
Valuation
Technique
     
Unobservable
Input
     
Range
(Weighted
Average)
  
     (Dollars in thousands)  
           Discount        6.0 % 
Collateral dependent loan
    $ 95        Collateral
1
 		      adjustment        (6.0 %) 
 
1
 
Value based on third party offer to purchase note from the Bank.
The following table presents quantitative information using Level 3 fair value measurements at December 31, 2023.
 
Description
   
December 31,
2023
     
Valuation
Technique
     
Unobservable
Input
     
Range
(Weighted
Average)
  
     (Dollars in thousands)  
           Discount        0.0 % 
Collateral dependent loan
    $ 4,485        Collateral
1
 		      adjustment        (0.0 %) 
 
1
 
Value based on third party offer to purchase note from the Bank.
Summary Of Carrying Amounts And Estimated Fair Value Of Financial Instruments
The carrying amounts and estimated fair value of financial instruments at March 31, 2024 are as follows.
 
    
March 31, 2024
  
    
Carrying
Amount
     
Estimated
Fair Value
     
Level 1
     
Level 2
     
Level 3
  
     (In thousands)  
Financial Assets:
   
Cash and cash equivalents
    $ 172,067      $ 172,067      $ 172,067      $ —       $ —   
Securities
available-for-sale
at fair value
      118,098        118,098        —         118,098        —   
Securities
held-to-maturity
      167        167        —         167        —   
Loans receivable, net
      1,552,613        1,495,787        —         —         1,495,787  
Restricted investments in bank stock
      1,398        1,398        —         1,398        —   
Accrued interest receivable
      6,405        6,405        —         6,405        —   
Equity method investments
      9,051        9,051        —         5,900        3,151  
Mortgage servicing rights
      1,383        1,383        —         1,383        —   
Financial Liabilities:
               
Deposits
    $ 1,705,620        1,705,620      $ —       $ 1,705,620      $ —   
Accrued interest payable
      11,831        11,831        —         11,831        —   
The carrying amounts and estimated fair value of financial instruments at December 31, 2023 are as follows:
 
    
December 31, 2023
  
    
Carrying
Amount
     
Estimated
Fair Value
     
Level 1
     
Level 2
     
Level 3
  
     (In thousands)  
Financial Assets:
   
Cash and cash equivalents
    $ 150,557      $ 150,557      $ 150,557      $ —       $ —   
Securities AFS
      91,352        91,352        —         91,352        —   
Securities HTM
      193        192        —         192        —   
Loans receivable, net
      1,529,843        1,425,814        —         —         1,425,814  
Restricted bank stock
      1,410        1,410        —         1,410        —   
Accrued interest receivable
      6,089        6,089        —         6,089        —   
Equity method investments
      8,296        8,296        —         5,900        2,396  
Financial Liabilities
               
Deposits
      1,635,741        1,581,762        —         1,581,762        —   
Accrued interest payable
      9,162        9,162        —         9,162        —   
v3.24.1.1.u2
Summary of Significant Accounting Policies - Additional Information (Detail)
 3 Months Ended
Jan. 18, 2024
USD ($)
$ / shares
Mar. 31, 2024
Integer
May 19, 2023
May 03, 2007
Branches
Description Of Organization And Summary Of Significant Accounting Policies [Line Items]        
Entity incorporation date of incorporation   Mar. 05, 2007    
State in which the entity was incorporated   NJ    
Year of incorporation   2007    
Operations commencement date   Apr. 23, 2007    
Number of branches owned by the entity | Branches       29
Number of employees | Integer   211    
Number of full time employees | Integer   209    
Noah Bank [Member]        
Description Of Organization And Summary Of Significant Accounting Policies [Line Items]        
Percentage of outstanding common stock acquired     100.00%  
Cornerstone Financial Corporation [Member]        
Description Of Organization And Summary Of Significant Accounting Policies [Line Items]        
Business combination consideration transferred | $ $ 17,900,000      
Business acquisition stock conversion ratio 0.24      
Business acquisition, share price | $ / shares $ 8.16      
Share price | $ / shares $ 34      
Preferred stock, value, outstanding | $ $ 1,000      
New Jersey State Chartered Banking Institution [Member]        
Description Of Organization And Summary Of Significant Accounting Policies [Line Items]        
State in which the entity was incorporated   NJ    
v3.24.1.1.u2
Earnings Per Share - Summary of Earnings Per Share (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Earnings Per Share [Abstract]    
Net income applicable to common stock $ 4,345 $ 6,097
Weighted average number of common shares outstanding 6,328,000 6,257,000
Basic earnings per share $ 0.69 $ 0.97
Dilutive effect on common shares outstanding 90 129
Weighted average number of diluted common shares outstanding 6,418 6,386
Diluted earnings per share $ 0.68 $ 0.95
v3.24.1.1.u2
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - $ / shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Earnings Per Share [Line Items]      
Number of shares 90 129  
Option [Member]      
Earnings Per Share [Line Items]      
Number of shares 245,633 374,496  
Number of shares excluded 86,431 0  
Option [Member] | Employee Stock Option One [Member]      
Earnings Per Share [Line Items]      
Weighted average exercise price $ 21.38   $ 22.01
Weighted average exercise price excluded $ 33.19   $ 0
v3.24.1.1.u2
Investment Securities - Additional Information (Detail)
$ in Thousands
Mar. 31, 2024
USD ($)
Securities
Dec. 31, 2023
USD ($)
Marketable Securities [Line Items]    
Number of securities less than 12 months | Securities 30  
Number of securities more than 12 months | Securities 164  
Unrealized losses securities more than 12 months $ 10,810 $ 10,099
Securities pledged as collateral $ 0 $ 0
Number of investment securities | Securities 227  
Municipal Securities [Member]    
Marketable Securities [Line Items]    
Number of securities more than 12 months | Securities 98  
Unrealized losses securities more than 12 months $ 31,200  
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss $ 3,300  
Mortgage-backed securities [Member]    
Marketable Securities [Line Items]    
Number of securities more than 12 months | Securities 62  
Unrealized losses securities more than 12 months $ 30,200  
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss $ 6,500  
Agency Securities [Member]    
Marketable Securities [Line Items]    
Number of securities more than 12 months | Securities 4  
Unrealized losses securities more than 12 months $ 5,200  
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss $ 1,100  
v3.24.1.1.u2
Investment Securities - Summary of Amortized Cost and Estimated Fair Value (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]    
Amortized cost $ 128,974 $ 101,335
Gross Unrealized Gains 160 233
Gross Unrealized Losses (11,036) (10,216)
Fair value 118,098 91,352
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member]    
Debt Securities, Available-for-Sale [Line Items]    
Amortized cost 71,266 48,399
Gross Unrealized Gains 153 219
Gross Unrealized Losses (6,578) (5,984)
Fair value 64,841 42,634
U.S. government agency securities [Member]    
Debt Securities, Available-for-Sale [Line Items]    
Amortized cost 11,260 6,260
Gross Unrealized Gains 0 0
Gross Unrealized Losses (1,078) (969)
Fair value 10,182 5,291
Obligations of state and political subdivisions [Member]    
Debt Securities, Available-for-Sale [Line Items]    
Amortized cost 44,056 44,059
Gross Unrealized Gains 2 12
Gross Unrealized Losses (3,378) (3,262)
Fair value 40,680 40,809
Small business association (SBA) securities [Member]    
Debt Securities, Available-for-Sale [Line Items]    
Amortized cost 2,392 2,617
Gross Unrealized Gains 5 2
Gross Unrealized Losses (2) (1)
Fair value $ 2,395 $ 2,618
v3.24.1.1.u2
Investment Securities - Summary of Fair Value of Available For Sale Securities (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items]    
Less than 12 Months Fair Value $ 20,096 $ 8,698
Less than 12 Months Unrealized Losses (226) (117)
More than 12 Months Fair Value 66,586 67,335
More than 12 Months Unrealized Losses (10,810) (10,099)
Fair Value 86,682 76,033
Unrealized Losses (11,036) (10,216)
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member]    
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items]    
Less than 12 Months Fair Value 7,494 2,858
Less than 12 Months Unrealized Losses (114) (14)
More than 12 Months Fair Value 30,206 31,398
More than 12 Months Unrealized Losses (6,464) (5,970)
Fair Value 37,700 34,256
Unrealized Losses (6,578) (5,984)
U.S. government agency securities [Member]    
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items]    
Less than 12 Months Fair Value 4,998 0
Less than 12 Months Unrealized Losses (2) 0
More than 12 Months Fair Value 5,184 5,291
More than 12 Months Unrealized Losses (1,076) (969)
Fair Value 10,182 5,291
Unrealized Losses (1,078) (969)
Obligations of state and political subdivisions [Member]    
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items]    
Less than 12 Months Fair Value 6,788 5,117
Less than 12 Months Unrealized Losses (108) (102)
More than 12 Months Fair Value 31,196 30,646
More than 12 Months Unrealized Losses (3,270) (3,160)
Fair Value 37,984 35,763
Unrealized Losses (3,378) (3,262)
Small business association (SBA) securities [Member]    
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items]    
Less than 12 Months Fair Value 816 723
Less than 12 Months Unrealized Losses (2) (1)
More than 12 Months Fair Value 0 0
More than 12 Months Unrealized Losses 0 0
Fair Value 816 723
Unrealized Losses $ (2) $ (1)
v3.24.1.1.u2
Investment Securities - Summary of Securities Available For Sale By Contractual Maturity (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items]    
Amortized cost $ 128,974 $ 101,335
Fair value due in one year or less 20,096 8,698
Fair value due after one year through five years 66,586 67,335
Fair value 118,098 91,352
Prepayment of Obligation [Member]    
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items]    
Amortized cost due in one year or less 285  
Amortized cost due after one year through five years 8,454  
Amortized cost due after five years through ten years 34,437  
Amortized cost due after ten years 12,140  
Amortized cost 128,974  
Fair value due in one year or less 284  
Fair value due after one year through five years 8,263  
Fair value due after five years through ten years 32,065  
Fair value due after ten years 10,250  
Fair value 118,098  
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member]    
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items]    
Amortized cost 71,266 48,399
Fair value due in one year or less 7,494 2,858
Fair value due after one year through five years 30,206 31,398
Fair value 64,841 42,634
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | Prepayment of Obligation [Member]    
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items]    
Amortized cost 71,266  
Fair value 64,841  
Small business association (SBA) securities [Member]    
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items]    
Amortized cost 2,392 2,617
Fair value due in one year or less 816 723
Fair value due after one year through five years 0 0
Fair value 2,395 $ 2,618
Small business association (SBA) securities [Member] | Prepayment of Obligation [Member]    
Available For Sale Securities Amortized Cost and Debt Maturities Fair Value [Line Items]    
Amortized cost 2,392  
Fair value $ 2,395  
v3.24.1.1.u2
Loans Receivable - Additional Information (Detail)
 3 Months Ended
Mar. 31, 2024
USD ($)
Loan
Mar. 31, 2023
USD ($)
Loan
Dec. 31, 2023
USD ($)
Schedule Of Activity Relating To Amount Due From Related Party [Line Items]      
Number of loans | Loan 6 9  
Troubled debt restructuring $ 2,100,000   $ 6,700,000
Payments to Acquire Loans Receivable 0 $ 0  
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]      
Schedule Of Activity Relating To Amount Due From Related Party [Line Items]      
Financing receivable, accrued interest, writeoff 310,000 130,000  
Loans Receivable [Member]      
Schedule Of Activity Relating To Amount Due From Related Party [Line Items]      
Accrued Interest Receivable $ 5,600,000 $ 4,300,000  
v3.24.1.1.u2
Loans Receivable - Summary of Loans Receivable Net (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 1,573,556 $ 1,550,133
Deferred fees and costs (2,325) (1,798)
Loans, net 1,571,231 1,548,335
Commercial real estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 1,162,741 1,142,864
Commercial and industrial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 45,930 50,961
Construction [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 321,009 310,187
Residential first-lien mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 36,565 38,040
Home equity/consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 7,311 $ 8,081
v3.24.1.1.u2
Loans Receivable - Summary of components of allowance for credit losses (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses - loans $ (18,618) $ (18,492) $ (16,507) $ (16,461)
Allowance for credit losses - off balance sheet (473) (589)    
Allowance for credit losses $ (19,091) $ (19,081)    
v3.24.1.1.u2
Loans Receivable - Summary of Nonaccrual Loans by Segment of Loan Portfolio (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Financing Receivable, Nonaccrual [Line Items]    
Total nonaccrual loans without a related allowance $ 1,965 $ 6,708
Total nonaccrual loans with a related allowance 150 0
Commercial real estate [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Total nonaccrual loans without a related allowance 1,235 4,485
Total nonaccrual loans with a related allowance 110 0
Commercial and industrial [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Total nonaccrual loans without a related allowance 596 2,116
Total nonaccrual loans with a related allowance 40 0
Construction [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Total nonaccrual loans without a related allowance 0 0
Total nonaccrual loans with a related allowance 0 0
Residential first-lien mortgage [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Total nonaccrual loans without a related allowance 134 107
Total nonaccrual loans with a related allowance $ 0 $ 0
v3.24.1.1.u2
Loans Receivable - Summary of Performance and Credit Quality of Loan Portfolio (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Current $ 1,569,711 $ 1,542,934
Total loans receivable 1,573,556 1,550,133
Loans receivable more than 90 days and accruing 0 0
Commercial real estate [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Current 1,160,199 1,138,220
Total loans receivable 1,162,741 1,142,864
Loans receivable more than 90 days and accruing 0 0
Commercial and industrial [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Current 44,788 48,542
Total loans receivable 45,930 50,961
Loans receivable more than 90 days and accruing 0 0
Construction [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Current 321,009 310,187
Total loans receivable 321,009 310,187
Loans receivable more than 90 days and accruing 0 0
Residential first-lien mortgage [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Current 36,404 37,933
Total loans receivable 36,565 38,040
Loans receivable more than 90 days and accruing 0 0
Home equity/consumer [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Current 7,311 8,052
Total loans receivable 7,311 8,081
Loans receivable more than 90 days and accruing 0 0
30 to 59 Days Past Due [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 615 491
30 to 59 Days Past Due [Member] | Commercial real estate [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 356 159
30 to 59 Days Past Due [Member] | Commercial and industrial [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 232 303
30 to 59 Days Past Due [Member] | Construction [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 0 0
30 to 59 Days Past Due [Member] | Residential first-lien mortgage [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 27 0
30 to 59 Days Past Due [Member] | Home equity/consumer [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 0 29
60 to 89 Days Past Due [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 1,115 0
60 to 89 Days Past Due [Member] | Commercial real estate [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 841 0
60 to 89 Days Past Due [Member] | Commercial and industrial [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 274 0
60 to 89 Days Past Due [Member] | Construction [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 0 0
60 to 89 Days Past Due [Member] | Residential first-lien mortgage [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 0 0
60 to 89 Days Past Due [Member] | Home equity/consumer [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 0 0
Greater than 90 Days [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 2,115 6,708
Greater than 90 Days [Member] | Commercial real estate [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 1,345 4,485
Greater than 90 Days [Member] | Commercial and industrial [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 636 2,116
Greater than 90 Days [Member] | Construction [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 0 0
Greater than 90 Days [Member] | Residential first-lien mortgage [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 134 107
Greater than 90 Days [Member] | Home equity/consumer [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 0 0
Past Due [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 3,845 7,199
Past Due [Member] | Commercial real estate [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 2,542 4,644
Past Due [Member] | Commercial and industrial [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 1,142 2,419
Past Due [Member] | Construction [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 0 0
Past Due [Member] | Residential first-lien mortgage [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total 161 107
Past Due [Member] | Home equity/consumer [Member]    
Financing Receivable Performance and Credit Quality Indicators [Line Items]    
Total $ 0 $ 29
v3.24.1.1.u2
Loans Receivable - Summary of loans by year of origination, internally assigned credit grades and risk characteristics (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]    
Total $ 1,573,556 $ 1,550,133
Commercial Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current period gross charge-offs Prior (237) 1,718
Current period gross charge-offs Total (237) 1,718
Commercial And Industrial [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current period gross charge-offs Prior (46) 55
Current period gross charge-offs Total (46) 55
Construction Loans [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current period gross charge-offs Prior   148
Current period gross charge-offs Total   148
Residential First lien Mortgage [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current period gross charge-offs Prior   2
Current period gross charge-offs Total   2
Loans Receivable [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 32,777 141,917
2023 and 2022 141,078 256,114
2022 and 2021 266,567 226,499
2021 and 2020 215,966 77,591
2020 and 2019 76,666 178,669
Prior 631,104 479,111
Revolving Loans 209,398 190,232
Total 1,573,556 1,550,133
Loans Receivable [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023   0
2023 and 2022   0
2022 and 2021   0
2021 and 2020   0
2020 and 2019   0
Prior   6,632
Revolving Loans   0
Total   6,632
Loans Receivable [Member] | Commercial Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 25,851 132,834
2023 and 2022 134,137 233,436
2022 and 2021 244,778 116,836
2021 and 2020 116,312 53,574
2020 and 2019 61,828 175,991
Prior 574,323 424,642
Revolving Loans 5,512 5,551
Total 1,162,741 1,142,864
Loans Receivable [Member] | Commercial And Industrial [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 653 2,098
2023 and 2022 563 2,304
2022 and 2021 1,615 11,925
2021 and 2020 11,702 1,962
2020 and 2019 648 1,133
Prior 18,519 16,494
Revolving Loans 12,230 15,045
Total 45,930 50,961
Loans Receivable [Member] | Construction Loans [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 6,050 5,832
2023 and 2022 5,832 18,379
2022 and 2021 17,809 91,774
2021 and 2020 83,849 19,216
2020 and 2019 11,371 0
Prior 7,391 8,484
Revolving Loans 188,707 166,502
Total 321,009 310,187
Loans Receivable [Member] | Residential First lien Mortgage [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 979
2022 and 2021 966 4,792
2021 and 2020 3,805 2,839
2020 and 2019 2,816 1,545
Prior 28,978 27,885
Revolving Loans 0 0
Total 36,565 38,040
Loans Receivable [Member] | Residential First lien Mortgage [Member] | Performing Financial Instruments [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 979
2022 and 2021 966 4,792
2021 and 2020 3,805 2,839
2020 and 2019 2,816 1,545
Prior 28,846 27,778
Revolving Loans 0 0
Total 36,433 37,933
Loans Receivable [Member] | Residential First lien Mortgage [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 0
2022 and 2021 0 0
2021 and 2020 0 0
2020 and 2019 0 0
Prior 132 107
Revolving Loans 0 0
Total 132 107
Loans Receivable [Member] | Home Equity Loan [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 223 1,153
2023 and 2022 546 1,016
2022 and 2021 1,399 1,172
2021 and 2020 298 0
2020 and 2019 3 0
Prior 1,893 1,606
Revolving Loans 2,949 3,134
Total 7,311 8,081
Loans Receivable [Member] | Home Equity Loan [Member] | Performing Financial Instruments [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 223 1,153
2023 and 2022 546 1,016
2022 and 2021 1,371 1,172
2021 and 2020 298 0
2020 and 2019 3 0
Prior 1,893 1,606
Revolving Loans 2,949 3,134
Total 7,283 8,081
Loans Receivable [Member] | Home Equity Loan [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 0
2022 and 2021 28 0
2021 and 2020 0 0
2020 and 2019 0 0
Prior 0 0
Revolving Loans 0 0
Total 28 0
Loans Receivable [Member] | Pass [Member] | Performing Financial Instruments [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 32,777 141,917
2023 and 2022 141,078 256,114
2022 and 2021 266,539 226,499
2021 and 2020 215,966 77,591
2020 and 2019 76,166 178,669
Prior 624,611 469,239
Revolving Loans 209,398 190,232
Total 1,566,535 1,540,261
Loans Receivable [Member] | Pass [Member] | Commercial Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 25,851 132,834
2023 and 2022 134,137 233,436
2022 and 2021 244,778 116,836
2021 and 2020 116,312 53,574
2020 and 2019 61,828 175,991
Prior 574,323 417,417
Revolving Loans 5,512 5,551
Total 1,162,741 1,135,639
Loans Receivable [Member] | Pass [Member] | Commercial And Industrial [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 653 2,098
2023 and 2022 563 2,304
2022 and 2021 1,615 11,925
2021 and 2020 11,702 1,962
2020 and 2019 148 1,133
Prior 12,158 13,954
Revolving Loans 12,230 15,045
Total 39,069 48,421
Loans Receivable [Member] | Pass [Member] | Construction Loans [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 6,050 5,832
2023 and 2022 5,832 18,379
2022 and 2021 17,809 91,774
2021 and 2020 83,849 19,216
2020 and 2019 11,371 0
Prior 7,391 8,484
Revolving Loans 188,707 166,502
Total 321,009 310,187
Loans Receivable [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 0
2022 and 2021 0 0
2021 and 2020 0 0
2020 and 2019 0 0
Prior 4,508 3,240
Revolving Loans 0 0
Total 4,508 3,240
Loans Receivable [Member] | Special Mention [Member] | Commercial Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 0
2022 and 2021 0 0
2021 and 2020 0 0
2020 and 2019 0 0
Prior 0 2,740
Revolving Loans 0 0
Total 0 2,740
Loans Receivable [Member] | Special Mention [Member] | Commercial And Industrial [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 0
2022 and 2021 0 0
2021 and 2020 0 0
2020 and 2019 0 0
Prior 4,508 500
Revolving Loans 0 0
Total 4,508 500
Loans Receivable [Member] | Special Mention [Member] | Construction Loans [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 0
2022 and 2021 0 0
2021 and 2020 0 0
2020 and 2019 0 0
Prior 0 0
Revolving Loans 0 0
Total 0 0
Loans Receivable [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0  
2023 and 2022 0  
2022 and 2021 28  
2021 and 2020 0  
2020 and 2019 500  
Prior 1,985  
Revolving Loans 0  
Total 2,513  
Loans Receivable [Member] | Substandard [Member] | Commercial Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 0
2022 and 2021 0 0
2021 and 2020 0 0
2020 and 2019 0 0
Prior 0 4,485
Revolving Loans 0 0
Total 0 4,485
Loans Receivable [Member] | Substandard [Member] | Commercial And Industrial [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 0
2022 and 2021 0 0
2021 and 2020 0 0
2020 and 2019 500 0
Prior 1,853 2,040
Revolving Loans 0 0
Total 2,353 2,040
Loans Receivable [Member] | Substandard [Member] | Construction Loans [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2024 and 2023 0 0
2023 and 2022 0 0
2022 and 2021 0 0
2021 and 2020 0 0
2020 and 2019 0 0
Prior 0 0
Revolving Loans 0 0
Total $ 0 $ 0
v3.24.1.1.u2
Loans Receivable - Summary of Allowance for Loan Losses On Loans Receivables (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Allowance for loan losses:    
Beginning balance $ 18,492 $ 16,461
CECL adoption   (301)
Provision   344
Charge-offs   0
Recoveries   3
Total 18,618 16,507
Commercial real estate [Member]    
Allowance for loan losses:    
Beginning balance 16,047 8,654
CECL adoption   1,384
Provision 631 (4)
Charge-offs (237) 0
Recoveries 5 3
Total 16,446 10,037
Commercial and industrial [Member]    
Allowance for loan losses:    
Beginning balance 488 271
CECL adoption   (73)
Provision (31) 16
Charge-offs (46) 0
Recoveries 102 0
Total 513 214
Construction [Member]    
Allowance for loan losses:    
Beginning balance 1,145 6,289
CECL adoption   (1,269)
Provision (124) 329
Charge-offs 0 0
Recoveries 0 0
Total 1,021 5,349
Residential first-lien mortgage [Member]    
Allowance for loan losses:    
Beginning balance 725 236
CECL adoption   428
Provision (153) (10)
Charge-offs 0 0
Recoveries 0 0
Total 572 654
Home equity/consumer [Member]    
Allowance for loan losses:    
Beginning balance 87 45
CECL adoption   195
Provision (21) 13
Charge-offs 0 0
Recoveries 0 0
Total 66 253
PPP [Member]    
Allowance for loan losses:    
Beginning balance   0
CECL adoption   0
Provision   0
Charge-offs   0
Recoveries   0
Total   0
Unallocated [Member]    
Allowance for loan losses:    
Beginning balance 18,492 966
CECL adoption   (966)
Provision 302 0
Charge-offs (283) 0
Recoveries 107 0
Total $ 18,618 $ 0
v3.24.1.1.u2
Loans Receivable - Summary of Allowance for Loan Losses On Loans Receivables (Parenthetical) (Detail) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Receivables [Abstract]    
Provision for credit losses $ 186,000 $ 265,000
Increase decrease in reserve for unfunded liabilities 116,000 79,000
Financing receivable allowance for credit loss not purchased with credit deterioration $ 302,000,000 $ 344,000
v3.24.1.1.u2
Deposits - Summary of Components of Deposits (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Deposit Liability [Line Items]    
Demand, non-interest-bearing checking $ 247,056 $ 249,282
Demand, interest-bearing checking 215,364 247,939
Savings 149,386 146,484
Money market 378,652 354,005
Time deposits, $250,000 and over 179,479 173,614
Time deposits, other 535,683 464,417
Total deposits $ 1,705,620 $ 1,635,741
Demand, non-interest-bearing checking percentage 14.48% 15.24%
Demand, interest-bearing checking percentage 12.63% 15.16%
Savings percentage 8.76% 8.96%
Money market percentage 22.20% 21.64%
Time deposits, $250,000 and over percentage 10.52% 10.61%
Time deposits other percentage 31.41% 28.39%
Total deposits percentage 100.00% 100.00%
v3.24.1.1.u2
Borrowings - Additional Information (Detail) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Short-Term Debt [Line Items]    
Borrowings outstanding $ 0 $ 0
v3.24.1.1.u2
Fair Value Measurements and Disclosure - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value $ 118,098 $ 91,352
Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 118,098 91,352
Fair Value, Recurring [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 118,098 91,352
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 118,098 91,352
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 0 0
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 64,841 42,634
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | Fair Value, Recurring [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 64,841 42,634
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 64,841 42,634
Mortgage-backed securities - U.S. Government Sponsored Enterprises (GSEs) [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 0 0
US Government Agencies Debt Securities [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 10,182 5,291
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 10,182 5,291
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value  
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 10,182 5,291
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 0 0
US States and Political Subdivisions Debt Securities [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 40,680 40,809
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 40,680 40,809
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 40,680 40,809
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 0 0
Small Business Association (SBA) securities [Member] | Fair Value, Recurring [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 2,395 2,618
Small Business Association (SBA) securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value
Small Business Association (SBA) securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value 2,395 2,618
Small Business Association (SBA) securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value Assets Measured On Recurring Basis [Line Items]    
Securities available-for-sale, at fair value $ 0 $ 0
v3.24.1.1.u2
Fair Value Measurements and Disclosure - Summary of Financial Assets Measured at Fair Value on NonRecurring Basis (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Fair Value, Inputs, Level 3 [Member]    
Fair Value Assets Measured On Nonrecurring Basis [Line Items]    
Loans Receivable, Fair Value Disclosure $ 1,495,787 $ 1,425,814
Fair Value, Nonrecurring [Member]    
Fair Value Assets Measured On Nonrecurring Basis [Line Items]    
Assets, Fair Value Disclosure 95 4,485
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets Measured On Nonrecurring Basis [Line Items]    
Assets, Fair Value Disclosure 0 0
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets Measured On Nonrecurring Basis [Line Items]    
Assets, Fair Value Disclosure 0 0
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value Assets Measured On Nonrecurring Basis [Line Items]    
Assets, Fair Value Disclosure 95 4,485
Collateral dependent loan [Member] | Fair Value, Nonrecurring [Member]    
Fair Value Assets Measured On Nonrecurring Basis [Line Items]    
Loans Receivable, Fair Value Disclosure 95 4,485
Collateral dependent loan [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value Assets Measured On Nonrecurring Basis [Line Items]    
Loans Receivable, Fair Value Disclosure 0 0
Collateral dependent loan [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value Assets Measured On Nonrecurring Basis [Line Items]    
Loans Receivable, Fair Value Disclosure 0 0
Collateral dependent loan [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value Assets Measured On Nonrecurring Basis [Line Items]    
Loans Receivable, Fair Value Disclosure $ 95 $ 4,485
v3.24.1.1.u2
Fair Value Measurements and Disclosure - Summary of Quantitative Information Using Level 3 Fair Value Measurements (Detail)
$ in Thousands
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Fair Value, Inputs, Level 3 [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans Receivable, Fair Value Disclosure $ 1,495,787 $ 1,425,814
Collateral dependent loan [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans Receivable Measurement Input 6 0
Measurement Input Discount Rate Adjustment [Member] | Valuation Technique Collateral [Member] | Weighted Average [Member] | Collateral dependent loan [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans Receivable, Fair Value Disclosure $ 95 $ 4,485
Loans Receivable Measurement Input (6) 0
v3.24.1.1.u2
Fair Value Measurements and Disclosure - Summary of Carrying Amounts and Estimated Fair Value of Financial Instruments (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Financial Assets: (Carrying Amount)    
Cash and cash equivalents $ 172,067 $ 150,557
Securities available-for-sale at fair value 118,098 91,352
Securities held-to-maturity 167 193
Loans receivable, net 1,552,613 1,529,843
Restricted bank stock 1,398 1,410
Accrued interest receivable 6,405 6,089
Equity method investments 9,051 8,296
Mortgage servicing rights 1,383  
Financial Liabilities (Carrying Amount)    
Deposits 1,705,620 1,635,741
Accrued interest payable 11,831 9,162
Financial Assets: (Fair Value)    
Securities available-for-sale at fair value 118,098 91,352
Securities held-to-maturity 199 200
Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member]    
Financial Assets: (Fair Value)    
Cash and cash equivalents 172,067 150,557
Securities available-for-sale at fair value 118,098 91,352
Securities held-to-maturity 167 192
Loans receivable, net 1,495,787 1,425,814
Restricted bank stock 1,398 1,410
Accrued interest receivable 6,405 6,089
Equity method investments 9,051 8,296
Mortgage servicing rights 1,383  
Financial Liabilities (Fair Value)    
Deposits 1,705,620 1,581,762
Accrued interest payable 11,831 9,162
Fair Value, Inputs, Level 1 [Member]    
Financial Assets: (Fair Value)    
Cash and cash equivalents 172,067 150,557
Fair Value, Inputs, Level 2 [Member]    
Financial Assets: (Fair Value)    
Securities available-for-sale at fair value 118,098 91,352
Securities held-to-maturity 167 192
Restricted bank stock 1,398 1,410
Accrued interest receivable 6,405 6,089
Equity method investments 5,900 5,900
Mortgage servicing rights 1,383  
Financial Liabilities (Fair Value)    
Deposits 1,705,620 1,581,762
Accrued interest payable 11,831 9,162
Fair Value, Inputs, Level 3 [Member]    
Financial Assets: (Fair Value)    
Loans receivable, net 1,495,787 1,425,814
Equity method investments $ 3,151 $ 2,396
v3.24.1.1.u2
Leases - Additional Information (Detail)
Mar. 31, 2024
Leases [Abstract]  
Weighted-average remaining lease terms for operating leases 11 years 7 months 6 days
Weighted-average discount rate 3.48%
v3.24.1.1.u2
Leases - Summary of Operating Leases of Lessee (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Gross carrying amount $ 23,398 $ 16,026
Increased asset from new lease 1,808 9,799
Accumulated amortization (2,480) (2,427)
Net book value 22,726 23,398
Lease liabilities $ 23,643 $ 24,280
v3.24.1.1.u2
Leases - Summary of Lease Cost (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Lease cost:    
Operating lease $ 987 $ 665
Short-term lease cost 48 2
Total lease cost 1,035 667
Cash paid for amounts included in the measurement of lease liabilities $ 898 $ 585
v3.24.1.1.u2
Leases - Summary of Lessee Operating Lease Liability Maturity (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Lessee, Operating Lease, Liability, to be Paid [Abstract]    
2024 $ 3,501  
2025 3,453  
2026 3,269  
2027 2,992  
2028 2,779  
Thereafter 15,748  
Total future operating lease payment 31,742  
Amounts representing interest (8,099)  
Present value of net future lease payments $ 23,643 $ 24,280
v3.24.1.1.u2
Goodwill and Core Deposit Intangible - Additional Information (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Goodwill And Intangible Assets Disclosure [Line Items]    
Goodwill $ 8,853 $ 8,853
Core deposit intangible assets $ 1,301 $ 1,422
Percentage of fair value of reporting unit including goodwill 50.00%  
Percentage of probability of fair value of reporting unit including goodwill 50.00%  
Core Deposits [Member]    
Goodwill And Intangible Assets Disclosure [Line Items]    
Core deposit intangible assets $ 4,200  
Intangible assets amortized year 10 years  
Core Deposits [Member] | Noah Bank Acquisition [Member]    
Goodwill And Intangible Assets Disclosure [Line Items]    
Core deposit intangible assets $ 98  
v3.24.1.1.u2
Goodwill and Core Deposit Intangible - Summary of Carrying Amount of Goodwill and Core Deposit Intangible Assets (Detail)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill, Beginning balance $ 8,853
Core Deposit Intangible, Beginning balance 1,422
Amortization expense (121)
Goodwill, Ending balance 8,853
Core Deposit Intangible, Ending balance $ 1,301
v3.24.1.1.u2
Goodwill and Core Deposit Intangible - Summary of Future Fiscal Periods Amortization for the Core Deposit Intangible (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]    
2024 $ 314  
2025 353  
2026 274  
2027 195  
Thereafter 165  
Total $ 1,301 $ 1,422
v3.24.1.1.u2
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - $ / shares
Apr. 24, 2024
Apr. 23, 2024
Subsequent Event [Line Items]    
Dividends payable, date to be paid May 31, 2024  
Dividends payable, date of record May 10, 2024  
Preferred stock, shares authorized   2,000,000
Dividend Declared [Member]    
Subsequent Event [Line Items]    
Dividends payable, amount per share $ 0.3  
Princeton Bancorp (NASDAQ:BPRN)
Historical Stock Chart
From Jan 2025 to Feb 2025 Click Here for more Princeton Bancorp Charts.
Princeton Bancorp (NASDAQ:BPRN)
Historical Stock Chart
From Feb 2024 to Feb 2025 Click Here for more Princeton Bancorp Charts.