Credit Loss Provision and Allowance - The provision for credit losses for the six months ended June 30, 2023, was 0.5million,comparedtoacreditof2.9 million for the same period in the prior year, indicating a 3.4millionincreaseinprovision[20].−Thecompanyanticipatesfutureoutcomescoulddifferfromthoseprojectedbythequantitativemodelusedfordeterminingtheallowanceforcreditlosses[19].−Thehistoricallossfactordecreasedby1.0 million due to the roll-off of a commercial real estate property previously charged off in the second quarter of 2020[20]. - The company experienced additional provisioning of 1.4millionrelatedtoincreasedloangrowthduringthefirstsixmonthsof2023[20].−Theallowanceforcreditlossestototalloansremainedstableat1.070.5 million, a decrease from a credit of 2.9millioninthesameperiodlastyear,reflectinga3.4 million increase in provision due to various adjustments[20]. - The Corporation's corporate bonds and notes portfolio has not recorded any ACL as of June 30, 2023, as all corporate bond debt securities continue to accrue interest and make payments as expected[69]. - The corporation has not recorded an allowance for credit losses (ACL) on its corporate bonds and notes portfolio due to immaterial credit risk[69]. Non-Interest Income and Expenses - WMG fee income for June 2023 was 5.183million,adecreaseof3.85.385 million in June 2022[23]. - Total non-interest income for June 2023 was 10.870million,adecreaseof1.010.982 million in June 2022[23]. - The decrease in other non-interest income was primarily due to declines in swap fees and Mastercard volume incentives compared to the same period last year[24]. - Total non-interest income for the three months ended June 30, 2023, was 10.87million,adecreaseof0.112 million, or 1.0%, compared to 10.982millionintheprioryear[23].−Thetotalnon−interestexpensewas15,913 million, an increase of 1,571millionor11.014,342 million in 2022[26]. - Total non-interest expense increased to 15.913millionforthethreemonthsendedJune30,2023,upby1.571 million, or 11.0%, from 14.342millioninthesameperiodlastyear[26].CompensationandEquity−Totalcompensationexpenseincreasedto8,338 million in June 2023, up by 748millionor9.97,590 million in 2022[26]. - Shareholders' equity rose to 177.4millionasofJune30,2023,comparedto166.4 million at December 31, 2022, driven by a 9.6millionincreaseinretainedearnings[29].−Shareholders′equityincreasedto177.4 million at June 30, 2023, from 166.4millionatDecember31,2022,drivenbya9.6 million increase in retained earnings and a 0.5milliondecreaseinaccumulatedothercomprehensiveloss[29].SecuritiesandInvestments−Theavailableforsalesegmentofthesecuritiesportfoliodecreasedby28.3 million, or 4.5%, to 604.3millionatJune30,2023[30].−Theheldtomaturitysegmentofthesecuritiesportfoliodecreasedto1.8 million at June 30, 2023, down from 2.4millionatDecember31,2022[30].−TheCorporation′stotalsecuritiesavailableforsaleamountedto700.253 million with an estimated fair value of 604.313millionasofJune30,2023[51].−AsofJune30,2023,totalavailableforsalesecuritiesamountedto700,253 million, an increase from 604,313millioninthepreviousyear[55].−Themortgage−backedsecuritiesportfoliowasvaluedat497,995 million, up from 417,365millionyear−over−year[55].−ThetotaltemporarilyimpairedsecuritiesasofJune30,2023,amountedto594,146 million with unrealized losses of 96,053million[66].−Thecorporation′sunrealizedlossesinavailableforsaleinvestmentsecuritiesprimarilyrelatetomortgage−backedsecurities,withnoanticipatedneedtosellthesebeforerecovery[68].−TheCorporation′sassessmentofavailableforsaledebtsecuritiesforcreditriskincludesregularevaluationsofunrealizedlossesduetomarketconditionsandcreditqualitydeterioration[67].LoansandDeposits−Non−performingloanstototalloansimprovedto0.392,390,194 million as of June 30, 2023, reflecting a 62,967millionor2.7185,492 million compared to 73,452millionatDecember31,2022[45].−TheCorporation′sloancompositionshowedcommercialloansinrealestateandleasingat50.5303.4 million, while those maturing between five and 15 years totaled 494.7million,leadingtoatotalloanportfolioof1.76 billion[33]. - Borrowings decreased by 45.2millionto53.9 million as of June 30, 2023, primarily due to a decrease in FHLBNY overnight advances[48]. - There were no outstanding FHLBNY term advances as of June 30, 2023[48]. - The Bank's capital ratios exceeded the requirements to be classified as well-capitalized under regulatory guidelines as of June 30, 2023[49]. - Cash used in investing activities during the first six months of 2023 was predominantly due to a net increase in loans, offset by maturities and principal paydowns on securities available for sale[52]. Interest Rate Risk - Immediate decreases in interest rates of 100 and 200 basis points are estimated to positively impact the next 12 months net interest income by 3.85% and 5.94% respectively[63]. - Interest rate risk assessments indicate that a 100-basis point decrease in interest rates could increase net interest income by 3.85% over the next 12 months[63].
