0001104659-24-034403 | 10-K | XBRL Viewer

December 31,

Unused lines of credit

Standby letters of credit

Subordinated Notes, net (Tables)

12 Months Ended

Dec. 31, 2023


	December 31,
	2023		2022
Subordinated Notes	$	—	$	65,000
Unamortized note premium		—		271
Total	$	—	$	65,271

Income Taxes - Reconciliation of income tax rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of U.S. federal statutory tax rate and effective income tax rate
Statutory tax rate	21.00%	21.00%	21.00%
Income tax expense (benefit) at US federal statutory rate of 21%	$ 2,218	$ (1,589)	$ 6,937
Effect of:
State taxes, net of federal benefit	489	1,376	2,165
Taxable income on surrender of company-owned life insurance		2,760
Contingent loss		3,830
Nontaxable cancellation of split-dollar life insurance		(863)
Nondeductible items	447	731	480
Other, net	(5)	384	61
Total income tax expense (benefit)	$ 3,149	$ 6,629	$ 9,643

FHLB Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
FHLB Borrowings
Long-term fixed-rate FHLBNY advances	$ 50,000	$ 50,000
Long-Term Debt
FHLB Borrowings
FHLB interest rates (as a percent)	1.96%	1.96%

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ 7,413	$ (14,194)	$ 23,390
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on investment securities, arising during the year, net of tax effect of $1,599, $(7,048) and $(499), respectively	4,220	(18,605)	(1,284)
Reclassification adjustment for (gain) loss included in net income (loss) of $113, $(32) and $-, respectively, included in gain (loss) on sale of investment securities, net of tax effect of $32, $(9) and $- , respectively	81	(23)
Total other comprehensive income (loss)	4,301	(18,628)	(1,284)
Comprehensive income (loss)	$ 11,714	$ (32,822)	$ 22,106

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Loans

12 Months Ended

Dec. 31, 2023

Loans

Loans

Note 5—Loans

Loans Held for Sale

The major categories of loans held for sale were as follows:


	December 31,
	2023		2022
Residential real estate	$	—	$	6,181
Commercial real estate		—		1,544
Total loans held for sale	$	—	$	7,725

At December 31, 2022, loans held for sale includes nonaccrual residential real estate loans of $1,942.

In March 2023, residential real estate loans held for investment with an amortized cost of $41,059 were transferred to loans held for sale due to management’s change in intent and decision to sell the loans. On the transfer, the Company recorded a $6,478 charge off applied against the allowance for credit losses to reflect these loans at their estimated fair value. In addition, residential real estate loans held for sale with an amortized cost of $3,906 were transferred to loans held for investment due to management’s change in intent and decision to not sell the loans.

During the year ended December 31, 2023, the Company sold loans held for sale, with a carrying value of $36,210 on the date of sale, to a third party for net cash proceeds of $37,930.

During the year ended December 31, 2021, commercial real estate loans with a carrying value of $61,549 were reclassified as loans held for sale from loans held for investment due to management’s change in intent and decision to sell the loans. On the date of transfer, the amortized cost exceeded the fair value of the loans due to credit deterioration. The Company recorded a charge-off of $7,921 to the allowance for credit losses, which established a new aggregate cost basis for the loans of $53,628 on the date of transfer. In February 2022, the Company sold substantially all of its commercial real estate loans held for sale, which loans had a carrying value of $49,455 on the date of sale, to a third party for cash proceeds of $49,610.

Loans Held for Investment

The major categories of loans held for investment and the allowance for credit losses were as follows:


	December 31,
	2023		2022
Residential real estate	$	1,085,776	$	1,391,276
Commercial real estate		236,982		221,669
Construction		10,381		44,503
Commercial and industrial		15,832		1,396
Other consumer		1		5
Total loans		1,348,972		1,658,849
Less: allowance for credit losses		(29,404)		(45,464)
Loans, net	$	1,319,568	$	1,613,385

Accrued interest receivable related to total gross loans, including loans held for sale, was $6,617 and $6,894 as of December 31, 2023 and 2022, respectively.

Loans totaling $428,358 and $389,830 were pledged as collateral on the FHLB borrowings at December 31, 2023 and 2022, respectively. Residential real estate loans collateralized by properties that were in the process of foreclosure totaled $4,004 and $5,711 at December 31, 2023 and 2022, respectively.

As disclosed above, residential real estate loans with an amortized cost of $41,059 were transferred to loans held for sale and subsequently sold in May 2023. Also, in March 2023, residential real estate loans with an amortized cost of $3,906 were transferred from loans held for sale to loans held for investment.

In October 2022, the Company acquired a pool of residential mortgage loans with an unpaid principal balance of $31,307 for a total purchase price of $30,847 from a third party investor. These loans were considered performing loans at the time of purchase.

During the year ended December 31, 2022, the Company charged off $4,064 of its recorded investment in certain higher risk commercial real estate loans held in its portfolio. These commercial real estate loans were then sold to a third-party investor for net cash proceeds of $17,794. No gain or loss was recorded on the sale of the commercial real estate loans.

During the year ended December 31, 2022, the Company repurchased pools of Advantage Loan Program loans with a total outstanding principal balance of $65,621. For more information on the repurchases of Advantage Loan Program loans, refer to Note 20—Commitments and Contingencies.

Allowance for Credit Losses

The allowance for credit losses at December 31, 2023 was estimated using the current expected credit loss model. The Company’s estimate of the allowance for credit losses reflects losses expected over the remaining contractual life of the loans. The contractual term does not consider extensions, renewals or modifications unless the Company has identified a loan where the individual borrower is experiencing financial difficulty. The following tables present the activity in the allowance for credit losses related to loans held for investment by portfolio segment for the year ended December 31, 2023:


							Commercial
	Residential		Commercial				and
December 31, 2023	Real Estate		Real Estate		Construction		Industrial		Total
Allowance for credit losses:
Beginning balance	$	27,951	$	11,694	$	5,781	$	38	$	45,464
Adoption of ASU 2016-13		865		1,151		(3,633)		(34)		(1,651)
Adoption of ASU 2022-02		(11)		—		391		—		380
Provision for (recovery of) credit losses		(8,433)		605		(1,158)		142		(8,844)
Charge offs		(6,478)		—		—		—		(6,478)
Recoveries		428		100		5		—		533
Total ending balance	$	14,322	$	13,550	$	1,386	$	146	$	29,404

The following tables present the activity in the allowance for loan losses for the year ended December 31, 2022 and 2021, as determined in accordance with ASC 310, Receivables (“ASC 310”), prior to the adoption of ASU 2016-13:


							Commercial
	Residential		Commercial				Lines of
December 31, 2022	Real Estate		Real Estate		Construction		Credit		Total
Allowance for loan losses:
Beginning balance	$	32,202	$	12,608	$	11,730	$	8	$	56,548
Provision for (recovery of) loan losses		(5,105)		3,060		(7,919)		30		(9,934)
Charge offs		(197)		(4,064)		—		—		(4,261)
Recoveries		1,051		90		1,970		—		3,111
Total ending balance	$	27,951	$	11,694	$	5,781	$	38	$	45,464


							Commercial
	Residential		Commercial				Lines of
December 31, 2021	Real Estate		Real Estate		Construction		Credit		Total
Allowance for loan losses:
Beginning balance	$	32,366	$	21,942	$	17,988	$	91	$	72,387
Provision for (recovery of) loan losses		(1,578)		(2,052)		(4,552)		(83)		(8,265)
Charge offs		—		(7,921)		(1,965)		—		(9,886)
Recoveries		1,414		639		259		—		2,312
Total ending balance	$	32,202	$	12,608	$	11,730	$	8	$	56,548

Prior to the adoption of ASU 2016-13, the Company individually evaluated commercial real estate loans, construction loans and commercial lines of credit for impairment, and large homogeneous loans, such as residential real estate loans and other consumer loans, were collectively evaluated for impairment. The following table presents loans individually and collectively evaluated for impairment and their respective allowance for loan loss allocation as of December 31, 2022, as determined in accordance with ASC 310, prior to the adoption of ASU 2016-13:


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2022	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	11	$	—	$	—	$	—	$	—	$	11
Collectively evaluated for impairment		27,940		11,694		5,781		38		—		45,453
Total ending allowance balance	$	27,951	$	11,694	$	5,781	$	38	$	—	$	45,464
Loans:
Loans individually evaluated for impairment	$	45	$	—	$	2,485	$	107	$	—	$	2,637
Loans collectively evaluated for impairment		1,391,231		221,669		42,018		1,289		5		1,656,212
Total ending loans balance	$	1,391,276	$	221,669	$	44,503	$	1,396	$	5	$	1,658,849

The following table presents information related to impaired loans by class of loans as of and for the year ended December 31, 2022 and 2021, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13:


	At December 31, 2022						Year Ended December 31, 2022
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Commercial real estate:
Retail	$	227	$	—	$	—	$	—	$	—	$	—
Construction		2,485		2,485		—		6,004		166		149
Commercial lines of credit:
Private banking		107		107		—		112		6		5
Subtotal		2,819		2,592		—		6,116		172		154
With an allowance for loan losses recorded:
Residential real estate, first mortgage		79		45		11		169		4		4
Total	$	2,898	$	2,637	$	11	$	6,285	$	176	$	158


	At December 31, 2021						Year Ended December 31, 2021
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	91	$	65	$	—	$	79	$	—	$	—
Commercial real estate:
Retail		—		—		—		612		—		—
Hotels/Single-room occupancy hotels		4,459		4,441		—		14,370		—		—
Office		—		—		—		1,846		—		—
Other		—		—		—		68		—		—
Construction		15,004		14,984		—		30,239		231		218
Commercial lines of credit:
Private banking		116		116		—		1,034		8		8
Subtotal		19,670		19,606		—		48,248		239		226
With an allowance for loan losses recorded:
Residential real estate, first mortgage		273		285		159		281		3		3
Construction		—		—		—		2,541		219		200
Subtotal		273		285		159		2,822		222		203
Total	$	19,943	$	19,891	$	159	$	51,070	$	461	$	429

In the tables above, the unpaid principal balance is not reduced for partial charge offs. Also, the recorded investment excludes accrued interest receivable on loans, which was not significant.

Also presented in the table above is the average recorded investment of the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan. Factors considered by management in determining if a loan was impaired include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. The average balances are calculated based on the month-end balances of the loans for the period reported.

Nonaccrual Loans and Past Due Loans

Past due loans held for investment are loans contractually past due 30 days or more as to principal or interest payments. A loan held for investment is classified as nonaccrual, and the accrual of interest on such loan is discontinued, when the contractual payment of principal or interest becomes 90 days past due. In addition, a loan may be placed on nonaccrual at any other time management has serious doubts about further collectability of principal or interest according to the contractual terms, even though the loan is currently performing. A loan held for investment may remain in accrual status if it is in the process of collection and well secured. When a loan held for investment is placed in nonaccrual status, interest accrued but not received is reversed against interest income. Interest received on such loans is applied to the principal balance of the loan until qualifying for return to accrual status. Loans are returned to accrual status after all principal and interest amounts contractually due are made and future payments are reasonably assured.

The following table presents the total amortized cost basis of loans on nonaccrual status, the amortized cost basis of loans on nonaccrual status with no related allowance for credit losses and loans past due 90 days or more and still accruing at December 31, 2023 and 2022:


	December 31,
	2023						2022
			Nonaccrual		Past Due 90				Nonaccrual		Past Due 90
			With No		Days or More				With No		Days or More
	Nonaccrual		Allowance for		and Still		Nonaccrual		Allowance for		and Still
	Loans		Credit Losses		Accruing		Loans		Credit Losses		Accruing
Residential real estate:
Residential first mortgage	$	8,942	$	4,079	$	31	$	33,501	$	—	$	35
Residential second mortgage		—		—		—		189		—		—
Commercial real estate		—		—		—		—		—		—
Total	$	8,942	$	4,079	$	31	$	33,690	$	—	$	35

At December 31, 2023, the Company had nonaccrual loans of $8,942 in its held for investment loan portfolio. The decrease in nonaccrual loans from December 31, 2022 is primarily due to nonaccrual loans of $28,637 that were transferred to held for sale in March 2023 and subsequently sold in May 2023. On the transfer, a charge off on these nonaccrual loans of $4,231 was recorded to the allowance for credit losses. The remainder of the decrease in nonaccrual loans is primarily due to loans of $4,162 that were paid in full and loans of $5,791 that were returned to accrual status. Partially offsetting these decreases, loans totaling $14,093 were added to nonaccrual status, a portion of which were transferred to held for sale and sold in May 2023.

The total interest income that would have been recorded if the nonaccrual loans had been current in accordance with their original terms was $401, $2,028 and $2,936 for the year ended December 31, 2023, 2022 and 2021, respectively. The Company does not record interest income on nonaccrual loans.

Aging Analysis of Past Due Loans

The following table presents an aging of the amortized cost basis of contractually past due loans at December 31, 2023:


	30 ‑ 59		60 ‑ 89		90 Days
	Days Past		Days Past		or More Past		Total		Current
December 31, 2023	Due		Due		Due		Past Due		Loans		Total
Residential real estate	$	16,634	$	2,305	$	8,973	$	27,912	$	1,057,864	$	1,085,776
Commercial real estate		—		—		—		—		236,982		236,982
Construction		—		—		—		—		10,381		10,381
Commercial and industrial		—		—		—		—		15,832		15,832
Other consumer		—		—		—		—		1		1
Total	$	16,634	$	2,305	$	8,973	$	27,912	$	1,321,060	$	1,348,972

The following table presents the aging of the recorded investment in past due loans, presented in accordance with ASC 310, at December 31, 2022, by class of loans:


	30 ‑ 59		60 ‑ 89		90 Days
	Days		Days		or More		Total		Current
December 31, 2022	Past Due		Past Due		Past Due		Past Due		Loans		Total
Residential real estate:
Residential first mortgage	$	17,881	$	5,337	$	33,536	$	56,754	$	1,324,545	$	1,381,299
Residential second mortgage		99		—		189		288		9,689		9,977
Commercial real estate:
Retail		—		—		—		—		28,971		28,971
Multifamily		—		—		—		—		81,444		81,444
Office		—		—		—		—		39,610		39,610
Hotels/Single-room occupancy hotels		—		—		—		—		5,208		5,208
Industrial		—		—		—		—		30,242		30,242
Other		—		—		—		—		36,194		36,194
Construction		—		—		—		—		44,503		44,503
Commercial lines of credit:
Private banking		—		—		—		—		107		107
C&I lending		—		—		—		—		1,289		1,289
Other consumer		—		—		—		—		5		5
Total	$	17,980	$	5,337	$	33,725	$	57,042	$	1,601,807	$	1,658,849

Collateral-Dependent Loans

Collateral-dependent loans are those for which repayment (on the basis of the Company’s assessment as of the reporting date) is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. As of December 31, 2023, the amortized cost basis of collateral-dependent loans was $4,004. These loans were collateralized by residential real estate property and the fair value of collateral on substantially all collateral-dependent loans were significantly in excess of their amortized cost basis.

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Historically, the Company has provided loan forbearances to residential borrowers when mandated and modified construction loans by providing term extensions. The Company did not have any loans held for investment to borrowers experiencing financial difficulty that were modified during the year ended December 31, 2023. The Company did not have any loans held for investment to borrowers experiencing financial difficulty that were previously modified that subsequently defaulted during the year ended December 31, 2023.

Credit Quality Indicators

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, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes homogeneous loans, such as residential real estate and other consumer loans, and non-homogeneous loans, such as commercial and industrial, construction and commercial real estate loans. This analysis is performed at least quarterly. The Company uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered pass-rated loans.

For residential and consumer loan classes, the Company evaluates credit quality based on the accrual status of the loan. The following table presents the amortized cost in residential loans based on accrual status:


													Revolving		Revolving
													Loans		Loans
	Term Loans Amortized Cost Basis by Origination Year												Amortized		Converted
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Costs Basis		to Term		Total
Residential lending
Residential mortgage loans:
Payment performance:
Accrual	$	764	$	72,840	$	132,567	$	99,676	$	202,793	$	560,185	$	7,729	$	280	$	1,076,834
Nonaccrual		—		—		—		—		1,739		7,203		—		—		8,942
Total residential mortgage loans	$	764	$	72,840	$	132,567	$	99,676	$	204,532	$	567,388	$	7,729	$	280	$	1,085,776
Residential mortgage loans:
Current period gross write offs	$	—	$	—	$	—	$	—	$	1,858	$	4,601	$	19	$	—	$	6,478

The amortized cost basis by year of origination and credit quality indicator of the Company’s commercial loans based on the most recent analysis performed was as follows:


													Revolving		Revolving
													Loans		Loans
	Term Loans Amortized Cost Basis by Origination Year												Amortized		Converted
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Costs Basis		to Term		Total
Commercial lending
Real estate – construction:
Risk rating
Pass	$	14	$	—	$	—	$	1,591	$	—	$	—	$	—	$	—	$	1,605
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		8,776		—		—		—		8,776
Total real estate - construction	$	14	$	—	$	—	$	1,591	$	8,776	$	—	$	—	$	—	$	10,381
Real estate – construction:
Current period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial:
Risk rating
Pass	$	14,461	$	1,071	$	—	$	—	$	—	$	97	$	130	$	73	$	15,832
Total commercial and industrial	$	14,461	$	1,071	$	—	$	—	$	—	$	97	$	130	$	—	$	15,832
Commercial and industrial:
Current period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate – commercial real estate:
Risk rating
Pass	$	28,975	$	79,013	$	33,694	$	35,148	$	6,938	$	13,020	$	—	$	—	$	196,788
Special mention		948		3,574		1,407		2,724		8,610		4,253		—		—		21,516
Substandard or lower		—		—		11,778		—		2,805		4,095		—		—		18,678
Total real estate – commercial real estate	$	29,923	$	82,587	$	46,879	$	37,872	$	18,353	$	21,368	$	—	$	—	$	236,982
Real estate – commercial real estate:
Current period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The credit risk profiles by internally assigned grade for loans by class of loans as of December 31, 2022, as determined in accordance with ASC 310, prior to the adoption of ASU 2016-13, were as follows:


			Special
December 31, 2022	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	1,347,763	$	—	$	33,536	$	—	$	1,381,299
Residential second mortgage		9,788		—		189		—		9,977
Commercial real estate:
Retail		28,971		—		—		—		28,971
Multifamily		67,361		14,083		—		—		81,444
Office		39,610		—		—		—		39,610
Hotels/Single-room occupancy hotels		—		3,669		1,539		—		5,208
Industrial		30,242		—		—		—		30,242
Other		21,036		15,158		—		—		36,194
Construction		31,369		4,650		8,484		—		44,503
Commercial lines of credit:
Private banking		107		—		—		—		107
C&I lending		1,289		—		—		—		1,289
Other consumer		5		—		—		—		5
Total	$	1,577,541	$	37,560	$	43,748	$	—	$	1,658,849

Income Taxes - Components of income tax (benefit) expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current:
Federal	$ (760)	$ 1,636	$ 4,814
State	(1,015)	214	1,429
Deferred:
Federal	3,290	3,251	2,088
State	1,634	1,528	1,312
Total income tax expense (benefit)	$ 3,149	$ 6,629	$ 9,643

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Operating Leases - Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 4,086	$ 4,110	$ 4,355
Weighted average remaining lease term (years)	4 years 21 days	4 years 10 months 6 days	5 years 6 months 10 days
Weighted average discount rate	3.00%	2.97%	2.94%

Commitments and Contingencies - Mortgage Repurchase Liability Activity and Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Mortgage repurchase liability:
Balance, beginning of period	$ 809	$ 2,954	$ 9,699
Net provision for (recovery of) mortgage repurchase liability	(59)	(639)	(1,234)
Loss on loan repurchases		(1,506)	(5,511)
Balance, end of the period	$ 750	$ 809	$ 2,954

Fair Value - Reconciliation and income statement classification using Level 3 inputs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration]	Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax	Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax
Collateralized debt obligations \| Recurring \| Level 3
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance of recurring Level 3 assets at beginning of year	$ 147	$ 203
Included in other comprehensive income (loss)		(2)
Principal maturities/settlements	(6)	(54)
Balance of recurring Level 3 assets at end of year	$ 141	$ 147

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Adoption of New Accounting Standards

Schedule of recently adopted accounting guidance


	Prior to		Adjustments for		Adjustments for		After
	Adoption		ASU 2016-13		ASU 2022-02		Adoption
Assets:
Allowance for credit losses – loans	$	45,464	$	(1,651)	$	380	$	44,193
Liabilities:
Liability for unfunded commitments		—		579		—		579
Pretax cumulative effect adjustment of a change in accounting principle				(1,072)		380
Less: income taxes				294		(104)
Cumulative effect adjustment of a change in accounting principle, net of tax			$	(778)	$	276

Commitments and Contingencies - Rollforward of the activity in the liability for unfunded commitments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Increase (decrease) in provision for (recovery of) credit losses	$ 317
Liability for unfunded commitment, end of period	896
ASU 2016-13
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Liability for unfunded commitment, end of period	579
Residential real estate
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Increase (decrease) in provision for (recovery of) credit losses	(52)
Liability for unfunded commitment, end of period	1
Residential real estate \| ASU 2016-13
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Liability for unfunded commitment, end of period	53
Commercial real estate
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Increase (decrease) in provision for (recovery of) credit losses	(1)
Liability for unfunded commitment, end of period	124
Commercial real estate \| ASU 2016-13
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Liability for unfunded commitment, end of period	125
Construction loans
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Increase (decrease) in provision for (recovery of) credit losses	365
Liability for unfunded commitment, end of period	763
Construction loans \| ASU 2016-13
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Liability for unfunded commitment, end of period	398
Commercial and industrial
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Increase (decrease) in provision for (recovery of) credit losses	5
Liability for unfunded commitment, end of period	8
Commercial and industrial \| ASU 2016-13
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Liability for unfunded commitment, end of period	$ 3

Loans - Activity in the Allowance For Credit Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Allowance for credit losses
Allowance for credit losses beginning of period	$ 45,464
Provision for (recovery of) credit losses	(8,844)
Charge offs	(6,478)
Recoveries	533
Total ending balance	29,404	$ 45,464
Allowance for loan losses
Beginning balance	45,464	56,548	$ 72,387
Provision for (recovery of) loan losses		(9,934)	(8,265)
Charge offs		(4,261)	(9,886)
Recoveries		3,111	2,312
Total ending balance		45,464	56,548
ASU 2016-13
Allowance for credit losses
Allowance for credit losses beginning of period	(1,651)
Total ending balance		(1,651)
ASU 2022-02
Allowance for credit losses
Allowance for credit losses beginning of period	380
Total ending balance		380
Residential Real Estate
Allowance for credit losses
Allowance for credit losses beginning of period	27,951
Provision for (recovery of) credit losses	(8,433)
Charge offs	(6,478)
Recoveries	428
Total ending balance	14,322	27,951
Allowance for loan losses
Beginning balance	27,951	32,202	32,366
Provision for (recovery of) loan losses		(5,105)	(1,578)
Charge offs		(197)
Recoveries		1,051	1,414
Total ending balance		27,951	32,202
Residential Real Estate \| ASU 2016-13
Allowance for credit losses
Allowance for credit losses beginning of period	865
Total ending balance		865
Residential Real Estate \| ASU 2022-02
Allowance for credit losses
Allowance for credit losses beginning of period	(11)
Total ending balance		(11)
Commercial Real Estate
Allowance for credit losses
Allowance for credit losses beginning of period	11,694
Provision for (recovery of) credit losses	605
Recoveries	100
Total ending balance	13,550	11,694
Allowance for loan losses
Beginning balance	11,694	12,608	21,942
Provision for (recovery of) loan losses		3,060	(2,052)
Charge offs		(4,064)	(7,921)
Recoveries		90	639
Total ending balance		11,694	12,608
Commercial Real Estate \| ASU 2016-13
Allowance for credit losses
Allowance for credit losses beginning of period	1,151
Total ending balance		1,151
Construction loans
Allowance for credit losses
Allowance for credit losses beginning of period	5,781
Provision for (recovery of) credit losses	(1,158)
Recoveries	5
Total ending balance	1,386	5,781
Allowance for loan losses
Beginning balance	5,781	11,730	17,988
Provision for (recovery of) loan losses		(7,919)	(4,552)
Charge offs			(1,965)
Recoveries		1,970	259
Total ending balance		5,781	11,730
Construction loans \| ASU 2016-13
Allowance for credit losses
Allowance for credit losses beginning of period	(3,633)
Total ending balance		(3,633)
Construction loans \| ASU 2022-02
Allowance for credit losses
Allowance for credit losses beginning of period	391
Total ending balance		391
Commercial Lines of Credit
Allowance for loan losses
Beginning balance	38	8	91
Provision for (recovery of) loan losses		30	(83)
Total ending balance		38	$ 8
Commercial and industrial
Allowance for credit losses
Allowance for credit losses beginning of period	38
Provision for (recovery of) credit losses	142
Total ending balance	146	38
Commercial and industrial \| ASU 2016-13
Allowance for credit losses
Allowance for credit losses beginning of period	$ (34)
Total ending balance		$ (34)

Operating Leases (Tables)

12 Months Ended

Dec. 31, 2023

Operating Leases

Schedule of Operating lease expense information


	Year Ended December 31,
	2023		2022		2021
Operating lease costs	$	3,979	$	4,083	$	4,377
Variable lease costs		921		861		1,136
Total lease costs	$	4,900	$	4,944	$	5,513

Schedule of Maturity of lease liabilities


Year Ended December 31,
2024	$	4,009
2025		3,313
2026		2,490
2027		1,702
2028		1,278
Thereafter		526
Total lease payments		13,318
Less: future interest costs⁽¹⁾		(781)
Present value of lease liabilities	$	12,537

(1)	Computed using the estimated interest rate for each lease

Schedule of Other information


	Year Ended December 31,
Other Information	2023			2022			2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4,086		$	4,110		$	4,355
Weighted average remaining lease term (years)		4.06			4.85			5.53
Weighted average discount rate		3.00	%		2.97	%		2.94	%

Summary of Significant Accounting Policies - Federal Home Loan Bank Stock & Federal Reserve Bank Stock (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Summary of Significant Accounting Policies
Servicing fees	$ 551	$ 905	$ 1,841
Percentage Of Capital Stock Owned	50.00%
Percentage Of Capital Stock Subject to Call	50.00%
Cash dividends received on investment	$ 106
Cash dividends received on investment securities	$ 653	$ 433	$ 609
Number of reportable segments \| segment	1

Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Operating Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating Leases
Lessee, operating lease, existence of option to extend [true false]	true
Components of lease expense
Operating lease costs	$ 3,979	$ 4,083	$ 4,377
Variable lease costs	921	861	1,136
Total lease costs	$ 4,900	4,944	5,513
Minimum
Operating Leases
Renewal term (in years)	5 years
Controlling Shareholders
Operating Leases
Sublease income		$ 97	$ 439

Equity Securities (Details) - USD ($) $ in Thousands	12 Months Ended
Equity Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Investment Securities
Fair value of equity securities	$ 4,703	$ 4,642
Equity securities	4,457	4,396
Equity securities with readily determinable fair values
Net gain (loss) recorded during the year on equity securities	61	(580)	$ (142)
Unrealized gains (loss) recorded during the period on equity securities held at the reporting date	61	(580)	$ (142)
Level 3
Investment Securities
Investment in equity securities without readily determinable fair value	$ 246	$ 246

Commitments and Contingencies - Unfunded Commitments and Litigation (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Plea Agreement
Commitments and Contingencies
Obligations under the agreement effective term		3 years
Loss contingency from Internal review of Advantage Loan Program
Commitments and Contingencies
Litigation settlement amount		$ 27,239
Liability for contingent losses			$ 27,239
Restitution amount paid	$ 27,239
Unused lines of credit
Commitments and Contingencies
Unused lines of credit		18,542	20,865
Fixed rate loans		$ 5,000
Interest rate on fixed rate loans		6.00%
Variable-rate loans		$ 13,542
Unused lines of credit \| Minimum
Commitments and Contingencies
Variable interest rate (as a percentage)		4.72%
Maturity period for variable interest loans		5 months
Unused lines of credit \| Maximum
Commitments and Contingencies
Variable interest rate (as a percentage)		10.88%
Maturity period for variable interest loans		22 years
Unused lines of credit \| Construction loans
Commitments and Contingencies
Unused lines of credit		$ 5,714
Unused lines of credit \| Commercial and industrial loans
Commitments and Contingencies
Unused lines of credit		874
Unused lines of credit \| Commercial real estate
Commitments and Contingencies
Unused lines of credit		2,165
Unused lines of credit \| Real estate loan, second mortgage \| Residential real estate
Commitments and Contingencies
Outstanding commitments with fixed interest rates		9,789
Standby letters of credit
Commitments and Contingencies
Unused lines of credit		$ 24	$ 24

FHLB Borrowings - FHLB Advances (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	12 Months Ended
	Sep. 30, 2022	May 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2023
FHLB Borrowings
Long-term fixed-rate FHLBNY advances				$ 50,000		$ 50,000
Payments of FHLBank Borrowings, Financing Activities			$ 157,000	$ 135,000	$ 168,000
Callable Option May, 2022
FHLB Borrowings
Repayment of advance		$ 100,000
Callable Option March, 2023
FHLB Borrowings
Short term variable rate advances	$ 35,000
Callable Option May, 2023
FHLB Borrowings
Repayment of advance	$ 35,000

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
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

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Company Only) - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
ASSETS
Other assets	$ 8,750	$ 11,476
Total assets	2,416,003	2,444,735
Liabilities:
Subordinated Notes, net		65,271
Other liabilities	21,757	46,810
Total liabilities	2,088,280	2,132,108
Total shareholders' equity	327,723	312,627	$ 343,627	$ 319,591
Total liabilities and shareholders' equity	2,416,003	2,444,735
Parent Company \| Reportable legal entities
ASSETS
Cash held at the Bank	14,512	20,064
Investment in subsidiaries	313,718	386,363
Other assets	306	1,160
Total assets	328,536	407,587
Liabilities:
Subordinated Notes, net		65,271
Other liabilities	813	29,689
Total liabilities	813	94,960
Total shareholders' equity	327,723	312,627
Total liabilities and shareholders' equity	$ 328,536	$ 407,587

Mortgage Servicing Rights, net (Tables)

12 Months Ended

Dec. 31, 2023

Mortgage Servicing Rights, net

Schedule of principal balance of mortgage loans serviced for others


	December 31,
	2023		2022
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	105,689	$	113,704
FHLB		31,016		34,282
Private investors		33,044		43,274
Total	$	169,749	$	191,260

Schedule of activity for mortgage servicing rights and related valuation allowance


	Year Ended December 31,
	2023		2022		2021
Mortgage servicing rights:
Beginning of year	$	1,840	$	3,332	$	7,853
Additions		—		11		136
Disposals (Note 20)		—		(863)		(2,381)
Amortization		(250)		(640)		(2,276)
End of year		1,590		1,840		3,332
Valuation allowance:
Beginning of year		46		610		2,165
Additions (recoveries)		2		(564)		(1,555)
End of year		48		46		610
Mortgage servicing rights, net	$	1,542	$	1,794	$	2,722

Loans - Impaired Loans by Class of Loans Prior to Adoption (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loans
Unpaid principal balance, with no related allowance for loan losses recorded	$ 2,819	$ 19,670
Unpaid principal balance, with an allowance for loan losses recorded		273
Total Unpaid Principal Balance	2,898	19,943
Recorded investment, with no related allowance for loan losses recorded	2,592	19,606
Recorded investment, with an allowance for loan losses recorded		285
Total Recorded Investment	2,637	19,891
Allowance for Loan Losses	11	159
Average recorded investment, with no related allowance for loan losses recorded	6,116	48,248
Average recorded investment, with an allowance for loan losses recorded		2,822
Total Average Recorded Investment	6,285	51,070
Interest Income Recognized, with no related allowance for loan losses recorded	172	239
Interest Income Recognized, with an allowance for loan losses recorded		222
Total Interest Income Recognized	176	461
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	154	226
Cash Basis Interest Recognized, with an allowance for loan losses recorded		203
Total Cash Basis Interest Recognized	158	429
Residential real estate \| Real estate loan, first mortgage
Loans
Unpaid principal balance, with no related allowance for loan losses recorded		91
Unpaid principal balance, with an allowance for loan losses recorded	79	273
Recorded investment, with no related allowance for loan losses recorded		65
Recorded investment, with an allowance for loan losses recorded	45	285
Allowance for Loan Losses	11	159
Average recorded investment, with no related allowance for loan losses recorded		79
Average recorded investment, with an allowance for loan losses recorded	169	281
Interest Income Recognized, with an allowance for loan losses recorded	4	3
Cash Basis Interest Recognized, with an allowance for loan losses recorded	4	3
Commercial real estate \| Retail
Loans
Unpaid principal balance, with no related allowance for loan losses recorded	227
Average recorded investment, with no related allowance for loan losses recorded		612
Commercial real estate \| Office
Loans
Average recorded investment, with no related allowance for loan losses recorded		1,846
Commercial real estate \| Hotels/Single-room occupancy hotels
Loans
Unpaid principal balance, with no related allowance for loan losses recorded		4,459
Recorded investment, with no related allowance for loan losses recorded		4,441
Average recorded investment, with no related allowance for loan losses recorded		14,370
Commercial real estate \| Other
Loans
Average recorded investment, with no related allowance for loan losses recorded		68
Construction loans
Loans
Unpaid principal balance, with no related allowance for loan losses recorded	2,485	15,004
Recorded investment, with no related allowance for loan losses recorded	2,485	14,984
Average recorded investment, with no related allowance for loan losses recorded	6,004	30,239
Average recorded investment, with an allowance for loan losses recorded		2,541
Interest Income Recognized, with no related allowance for loan losses recorded	166	231
Interest Income Recognized, with an allowance for loan losses recorded		219
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	149	218
Cash Basis Interest Recognized, with an allowance for loan losses recorded		200
Commercial and industrial \| Private banking
Loans
Unpaid principal balance, with no related allowance for loan losses recorded	107	116
Recorded investment, with no related allowance for loan losses recorded	107	116
Average recorded investment, with no related allowance for loan losses recorded	112	1,034
Interest Income Recognized, with no related allowance for loan losses recorded	6	8
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	$ 5	$ 8

Loans - Loans Held for Investment - Major categories, accrued interest, pledged (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Mar. 31, 2023	Oct. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Feb. 28, 2022	Dec. 31, 2020
Loans
Total loans			$ 1,348,972
Total loans				$ 1,658,849
Less: allowance for credit losses			(29,404)	(45,464)
Less: allowance for credit losses				(45,464)	$ (56,548)		$ (72,387)
Loans, net			1,319,568	1,613,385
Loans, net				1,613,385
Accrued interest receivable related to gross loans			6,617	6,894
Transfers of residential and commercial real estate loans to loans held for sale			34,581		53,628
Transfers of residential real estate loans from loans held for sale			3,906
Assets pledged as collateral
Loans
Loans, net			4,004,000
Assets pledged as collateral \| FHLB borrowings
Loans
Loans pledged as collateral			428,358	389,830
Residential Mortgage [Member]
Loans
Unpaid principal balance of loans acquired		$ 31,307
Purchase price of loans acquired		$ 30,847
Residential real estate
Loans
Total loans			1,085,776
Total loans				1,391,276
Less: allowance for credit losses			(14,322)	(27,951)
Less: allowance for credit losses				(27,951)	(32,202)		(32,366)
Transfers of residential and commercial real estate loans to loans held for sale	$ 41,059
Transfers of residential real estate loans from loans held for sale	3,906
Residential real estate \| Assets pledged as collateral
Loans
Loans in formal foreclosure proceedings			4,004,000	5,711,000
Nonaccrual residential real estate loans
Loans
Transfers of residential and commercial real estate loans to loans held for sale	28,637
Transfers of residential real estate loans from loans held for sale	$ 3,906
Commercial real estate
Loans
Total loans			236,982			$ 49,455
Total loans				221,669
Less: allowance for credit losses			(13,550)	(11,694)
Less: allowance for credit losses				(11,694)	(12,608)		(21,942)
Loans, net					53,628
Loans receivable charged off				4,064
Net cash proceeds from sale of commercial real estate loans to third party investor				17,794
Gain (loss) on sale of loans receivable				0
Construction loans
Loans
Total loans			10,381
Total loans				44,503
Less: allowance for credit losses			(1,386)	(5,781)
Less: allowance for credit losses				(5,781)	(11,730)		(17,988)
Commercial Lines of Credit
Loans
Total loans				1,396
Less: allowance for credit losses				(38)	$ (8)		$ (91)
Commercial and industrial
Loans
Total loans			15,832
Total loans				1,396
Less: allowance for credit losses			(146)	(38)
Other consumer
Loans
Total loans			$ 1
Total loans				$ 5

Debt Securities - Amortized Cost and Fair Value By Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Available for sale, Amortized Cost
Available for sale, Amortized Cost	$ 440,211	$ 370,489
Available for sale, Fair Value
Available for sale, Fair Value	419,213	343,558
U.S. Treasury and Agency securities
Available for sale, Amortized Cost
Due less than one year	173,633
Due after one year through five years	79,474
Available for sale, Amortized Cost	253,107	175,878
Available for sale, Fair Value
Due less than one year	173,398
Due after one year through five years	75,590
Available for sale, Fair Value	248,988	168,437
Mortgage-backed securities
Available for sale, Amortized Cost
Available for sale, Amortized Cost	35,757	41,388
Available for sale, Fair Value
Available for sale, Fair Value	31,927	36,733
Collateralized mortgage obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	151,196	153,066
Available for sale, Fair Value
Available for sale, Fair Value	138,157	138,241
Collateralized debt obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	151	157
Available for sale, Fair Value
Available for sale, Fair Value	$ 141	$ 147

Leasehold Improvements and Equipment, net

12 Months Ended

Dec. 31, 2023

Leasehold Improvements and Equipment, net

Leasehold Improvements and Equipment, net

Note 6—Leasehold Improvements and Equipment, net

Leasehold improvements and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are determined using the straight-line method. Leasehold improvements and equipment at December 31, 2023 and 2022 are as follows:


	Estimated
	Useful
	Life	December 31,
	(in years)	2023		2022
Leasehold improvements	*	$	11,658	$	11,592
Furniture and equipment	3 ‑ 7		12,270		11,959
Total			23,928		23,551
Less: accumulated depreciation and amortization			(18,498)		(17,250)
Leasehold improvements and equipment, net		$	5,430	$	6,301

* Amortized over the shorter of the lease term or estimated useful life.

The amount charged to occupancy and equipment in the consolidated statements of operations for depreciation and amortization was $1,331, $1,541 and $1,754 for the year ended December 31, 2023, 2022 and 2021, respectively.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of components of the income tax expense (benefit)


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	(760)	$	1,636	$	4,814
State		(1,015)		214		1,429
Deferred:
Federal		3,290		3,251		2,088
State		1,634		1,528		1,312
Total income tax expense	$	3,149	$	6,629	$	9,643

Schedule of reconciliation between income taxes computed at the U.S. federal statutory income tax rate to income tax expense (benefit)


	Year Ended December 31,
	2023		2022		2021
Income tax expense (benefit) at U.S. federal statutory rate of 21%	$	2,218	$	(1,589)	$	6,937
Effect of:
State taxes, net of federal benefit		489		1,376		2,165
Taxable income on surrender of company-owned life insurance		—		2,760		—
Contingent loss		—		3,830		—
Nontaxable cancellation of split-dollar life insurance		—		(863)		—
Nondeductible items		447		731		480
Other, net		(5)		384		61
Total income tax expense	$	3,149	$	6,629	$	9,643

Schedule of components of deferred tax assets and liabilities


	December 31,
	2023		2022
Deferred tax assets:
Allowance for credit losses	$	8,162	$	12,518
Net unrealized loss on investment securities		5,815		7,594
Operating lease liabilities		3,377		4,402
Compensation plans		1,535		963
Tax loss carryforwards		1,128		205
Depreciation		469		482
State franchise tax		1		358
Mortgage repurchase liability		203		223
Interest on nonaccrual loans		108		1,031
Accrued expenses		—		980
Loans held for sale valuation allowance		—		121
Other		305		186
Total deferred tax assets		21,103		29,063
Less: valuation allowance		(158)		(120)
Total deferred tax assets, net of valuation allowance		20,945		28,943
Deferred tax liabilities:
Operating lease right-of-use asset		(3,086)		(4,075)
Mortgage servicing rights		(415)		(494)
Other		(485)		(670)
Total deferred tax liabilities		(3,986)		(5,239)
Deferred tax asset, net	$	16,959	$	23,704

Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2023

Regulatory Capital Requirements

Regulatory Capital Requirements

Note 13—Regulatory Capital Requirements

The Bank is subject to the capital adequacy requirements of the OCC. The Company, as a thrift holding company, generally is subject to the capital adequacy requirements of the Federal Reserve. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Prompt corrective action regulations provide five classifications for depository institutions like the Bank, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors, and the regulators, in their discretion, can require the Company to lower classifications in certain cases. Failure to meet minimum capital requirements can initiate regulatory action that could have a direct material effect on the Company’s business, financial condition and results of operations.

The federal banking agencies’ regulations provide for an optional simplified measure of capital adequacy for qualifying community banking organizations (that is, the “CBLR” framework), as implemented pursuant to the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018. The CBLR framework is designed to reduce the burden of the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework. In order to qualify for the CBLR framework, a community banking organization must have (i) a Tier 1 leverage ratio of greater than 9.0%, (ii) less than $10 billion in total consolidated assets, and (iii) limited amounts of off-balance-sheet exposure and trading assets and liabilities. A qualifying community banking organization that opts into the CBLR framework and meets all requirements under the framework will be considered to have met the capital ratio requirements for the “well capitalized” capital category under applicable prompt corrective action regulations and will not be required to report or calculate risk-based capital under generally applicable capital adequacy requirements. Failure to meet the qualifying criteria within the grace period of two reporting periods, or to maintain a leverage ratio of 8.0% or greater, would require the institution to comply with the generally applicable capital adequacy requirements. An eligible banking organization can opt out of the CBLR framework and revert to compliance with general capital adequacy requirements and capital measurements under prompt corrective action regulations without restriction.

The Company and the Bank have determined the organization is a qualifying community banking organization and has elected to measure capital adequacy under the CBLR framework, effective as of January 1, 2023. Management believes as of December 31, 2023, the Company and the Bank meet all capital adequacy requirements to which they are subject. The following tables present the consolidated Company’s and the Bank’s actual and minimum required capital amounts and ratios under the CBLR framework at December 31, 2023 and the risk-weighting framework at December 31, 2022:


					To be Well
					Capitalized Under
					Prompt Corrective
					Action Regulations
	Actual				(CBLR Framework)
	Amount		Ratio		Amount		Ratio
December 31, 2023
Tier 1 (core) capital to average total assets (leverage ratio)
Consolidated	$	342,368	13.95	%	$	220,950	9.00	%
Bank	$	328,362	13.38	%	$	220,920	9.00	%


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2022
Total adjusted capital to risk-weighted assets
Consolidated	$	390,591	25.64	%	$	121,888	8.00	%		N/A	N/A
Bank		425,159	27.93			121,795	8.00		$	152,244	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		332,068	21.79			91,416	6.00			N/A	N/A
Bank		405,803	26.65			91,346	6.00			121,795	8.00
Common Equity Tier 1 (CET1)
Consolidated		332,068	21.79			68,562	4.50			N/A	N/A
Bank		405,803	26.65			68,510	4.50			98,959	6.50
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)
Consolidated		332,068	13.54			98,073	4.00			N/A	N/A
Bank		405,803	16.56			98,032	4.00			122,540	5.00

Dividend Restrictions

As noted above, federal banking regulations require the Bank to maintain certain capital levels and may limit the dividends paid by the Bank to the holding company or by the holding company to its shareholders. The holding company’s principal source of funds for dividend payments is dividends received from the Bank. Regulatory approval is required if (i) the total capital distributions for the applicable calendar year exceed the sum of the Bank’s net income for that year to date plus the Bank’s retained net income for the preceding two years or (ii) the Bank would not be at least “adequately capitalized” following the distribution. In addition, the Company currently is required to obtain the prior approval of the FRB in order to pay dividends to the Company’s shareholders.

The QTL test requires that a minimum of 65% of its portfolio assets be maintained in qualified thrift investments, primarily residential mortgages and related investments, including certain mortgage-backed and related securities in at least nine months out of each 12-month period. If the QTL test is not met, limits are placed on growth, branching, new investments, FHLB advances and dividends, or the Bank must convert to commercial bank charter. Effective August 9, 2023, the Bank operates as a covered savings association, which allows the Bank to operate as a commercial bank without being subject to the QTL test. Management believes that the QTL test had been met prior to becoming a covered savings association.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical)	May 31, 2021 $ / shares
Common Stock
Offering price (in dollars per share)	$ 4.50

Summary of Significant Accounting Policies - New Accounting Standards Adopted (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Adoption of New Accounting Standards
Retained earnings	$ 241,964	$ 234,049
Allowance for credit losses		45,464	$ 56,548	$ 72,387
Pretax cumulative effect adjustment of a change in accounting principle	10,562	(7,565)	33,033
Less: income taxes	(3,149)	(6,629)	(9,643)
Net income (loss)	$ 7,413	(14,194)	$ 23,390
After Adoption of ASC
Adoption of New Accounting Standards
Allowance for credit losses		44,193
Liability for unfunded commitments		579
ASU 2016-13 \| Cumulative effect adjustment (Note 2)
Adoption of New Accounting Standards
Retained earnings		778
Allowance for credit losses		(1,651)
Liability for unfunded commitments		579
Pretax cumulative effect adjustment of a change in accounting principle		(1,072)
Less: income taxes		294
Net income (loss)		(778)
ASU 2022-02 \| Cumulative effect adjustment (Note 2)
Adoption of New Accounting Standards
Retained earnings		(276)
Allowance for credit losses		380
Pretax cumulative effect adjustment of a change in accounting principle		380
Less: income taxes		(104)
Net income (loss)		$ 276

Equity Securities (Tables)

12 Months Ended

Dec. 31, 2023

Equity Securities

Summary of unrealized and realized gains and losses recognized in the condensed consolidated statements of income


	Year Ended
	December 31,
	2023		2022		2021
Net gains (loss) recorded during the year on equity securities	$	61	$	(580)	$	(142)
Less: net gains (loss) recorded during the year on equity securities sold during the period		—		—		—
Unrealized gains (loss) recorded during the year on equity securities held at the reporting date	$	61	$	(580)	$	(142)

FHLB Borrowings - FHLB Overdraft Line of Credit and Letters of Credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Jul. 31, 2021
FHLB Borrowings
FHLB fixed rate advances and overdraft line of credit additional borrowing capacity	$ 311,183
FHLB short-term overdraft line of credit expiring October, 2023
FHLB Borrowings
FHLB overdraft line of credit	$ 20,000	$ 20,000
FHLB overdraft line of credit (as percent)	5.76%	4.74%
FHLB overdraft line of credit outstanding borrowings	$ 0	$ 0
FHLB short-term overdraft line of credit expiring October, 2024
FHLB Borrowings
FHLB, agreement term	1 year
FHLB, additional agreement term	1 year
Standby letters of credit expiring July 2024
FHLB Borrowings
FHLB letter of credit	$ 2,000	2,000		$ 4,000
FHLB letter of credit term	36 months
FHLB letter of credit reduced			$ 2,000
Borrowings outstanding on FHLB standby letters of credit	$ 0	$ 0

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash Flows From Operating Activities
Net income (loss)	$ 7,413	$ (14,194)	$ 23,390
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for (recovery of) credit losses	(8,527)	(9,934)	(8,265)
Deferred income taxes	4,924	4,779	3,400
Gain on sale of branch office			(1,417)
Gain on extinguishment of Subordinated Notes	(234)
(Gain) loss on sale of debt securities	113	(32)
Unrealized (gain) loss on equity securities	(61)	580	142
Net amortization (accretion) on debt securities	(2,938)	(841)	2,380
Depreciation and amortization on leasehold improvements and equipment	1,331	1,541	1,754
Originations, net of principal payments, of loans held for sale	(9,438)	(3,641)	(9,995)
Proceeds from sale of mortgage loans held for sale	9,691	8,798	21,168
Gain on sale of loans held for sale	(1,623)	(143)	(634)
Net provision for (recovery of) of mortgage repurchase liability	(59)	(639)	(1,234)
Provision for contingent losses		18,239
Increase in cash surrender value of company-owned life insurance, net of premiums	(210)	(345)	(538)
Valuation allowance adjustments and amortization of mortgage servicing rights	252	939	3,102
Stock-based compensation	2,097	900	626
Other	(3)	70	468
Change in operating assets and liabilities:
Accrued interest receivable	(680)	(133)	3,294
Other assets	2,723	4,887	14,718
Other liabilities	(29,681)	(8,493)	(21,613)
Net cash provided by (used in) operating activities	(24,910)	2,338	30,746
Cash Flows From Investing Activities
Maturities of interest-bearing time deposits with other banks	685	934	6,336
Purchases of interest-bearing time deposits with other banks	(4,974)	(685)	(498)
Maturities and principal receipts of debt securities	71,856	87,748	136,989
Proceeds from sale of debt securities	9,578	6,999
Purchases of debt securities	(148,484)	(154,460)	(150,216)
Maturities (purchases) of debt securities, net	153
Proceeds from redemption of Federal Home Loan Bank stock	1,365	2,662
Purchase of shares of Federal Reserve Bank stock	(4,524)
Net decrease in loans	273,257	433,903	603,916
Purchases of portfolio loans		(97,974)	(179,341)
Principal payments received on loans held for sale previously classified as portfolio loans	1,959	2,531
Proceeds from loans held for sale previously classified as portfolio loans	37,930	67,584
Proceeds received from settlement of company-owned life insurance policies		24,877
Cash paid on sale of branch office			(63,545)
Proceeds from the sale of equipment	46
Purchases of leasehold improvements and equipment	(472)	(421)	(1,171)
Net cash provided by investing activities	238,375	373,698	352,470
Cash Flows From Financing Activities
Net increase (decrease) in deposits	49,949	(307,698)	(803,341)
Proceeds from advances from Federal Home Loan Bank		35,000
Repayments of advances from Federal Home Loan Bank		(135,000)	(168,000)
Payments on redemption of Subordinated Notes	(65,000)
Proceeds from issuance of shares of common stock			1,350
Cash paid for surrender of vested shares to satisfy employee tax liability	(245)	(216)	(46)
Net cash used in financing activities	(15,296)	(407,914)	(970,037)
Net change in cash and due from banks	198,169	(31,878)	(586,821)
Cash and due from banks, beginning of period	379,798	411,676	998,497
Cash and due from banks, end of period	577,967	379,798	411,676
Cash paid for:
Interest	62,004	19,835	50,751
Income taxes	300	2,279	37
Noncash investing and financing activities:
Transfers of residential and commercial real estate loans to loans held for sale	34,581		53,628
Transfers of residential real estate loans from loans held for sale	3,906
Right-of-use assets obtained in exchange for new operating lease liabilities	228	212	$ 3,883
Shares of common stock issued in satisfaction of matching contribution in defined contribution retirement plan	$ 1,028	$ 1,138

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Company Only) - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income (loss)	$ 7,413	$ (14,194)	$ 23,390
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Gain on extinguishment of Subordinated Notes	234
Provision for contingent losses		18,239
Other	(3)	70	468
Change in operating assets and liabilities:
Other assets	2,723	4,887	14,718
Other liabilities	(29,681)	(8,493)	(21,613)
Net cash provided by (used in) operating activities	(24,910)	2,338	30,746
Cash flows from investing activities
Net cash provided by investing activities	238,375	373,698	352,470
Cash flows from financing activities
Proceeds from issuance of shares of common stock			1,350
Payments on redemption of Subordinated Notes	(65,000)
Cash paid for surrender of vested shares to satisfy employee tax liability	(245)	(216)	(46)
Net cash used in financing activities	(15,296)	(407,914)	(970,037)
Net change in cash and due from banks	198,169	(31,878)	(586,821)
Cash and due from banks, beginning of period	379,798	411,676	998,497
Cash and due from banks, end of period	577,967	379,798	411,676
Cash paid for:
Interest	62,004	19,835	50,751
Parent Company \| Reportable legal entities
Cash flows from operating activities
Net income (loss)	7,413	(14,194)	23,390
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in subsidiaries income	(10,455)	(22,155)	(28,983)
Gain on extinguishment of Subordinated Notes	(234)
Provision for contingent losses		27,239
Other	(37)	(72)	2
Change in operating assets and liabilities:
Other assets	854	617	12,137
Other liabilities	(28,876)	802	(11,897)
Net cash provided by (used in) operating activities	(31,335)	(7,763)	(5,351)
Cash flows from investing activities
Dividends received from subsidiaries	90,000		10,000
Net cash provided by investing activities	90,000		10,000
Cash flows from financing activities
Proceeds from issuance of shares of common stock			1,350
Consideration received for issuance of shares of common stock to defined contribution retirement plan	1,028	1,138
Payments on redemption of Subordinated Notes	(65,000)
Cash paid for surrender of vested shares to satisfy employee tax liability	(245)	(216)	(46)
Net cash used in financing activities	(64,217)	922	1,304
Net change in cash and due from banks	(5,552)	(6,841)	5,953
Cash and due from banks, beginning of period	20,064	26,905	20,952
Cash and due from banks, end of period	14,512	20,064	26,905
Cash paid for:
Interest	$ 5,195	$ 4,484	$ 4,249

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2—Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the results of Sterling Bancorp, Inc. and its wholly-owned subsidiaries.

All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. 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 periods. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that could differ from those estimates.

Fair Value Measurements

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine its fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not readily available, the Company uses present value techniques and other valuation methods, as disclosed in Note 16—Fair Value, to estimate the fair value of its financial instruments. These valuation methods require considerable judgment, and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used.

Available for sale debt securities and equity securities with readily determinable fair values are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record other assets and liabilities at fair value on a nonrecurring basis, such as other real estate owned, nonmarketable equity securities and certain other assets and liabilities. These nonrecurring fair value adjustments generally involve write-downs of individual assets or application of lower of amortized cost or fair value accounting.

Consolidated Statements of Cash Flows

The Company presents the cash flows from cash receipts and payments pertaining to short-term borrowings and investments when the turnover is quick, the amounts are large, and maturities are less than ninety days on a net basis in its consolidated statements of cash flows. Also, net cash flows are reported for customer loan and deposit transactions.

Cash flows related to customer loans are classified within operating and investing activities in the consolidated statements of cash flows based on their initial classification of the loan.

Cash and Due from Banks

Cash and due from banks, consisting of cash, certificates of deposit and other deposits held with other banks with original maturities of three months or less, are considered cash and cash equivalents for purposes of the consolidated statements of cash flows.

Interest-bearing Time Deposits with Other Banks

Interest-bearing time deposits with other banks consists of certificates of deposit with maturities greater than three months and are carried at cost. Each certificate of deposit is below the FDIC insurance limit of $250. Interest income is recorded when earned.

Concentration of Credit Risk

The loan portfolio consists primarily of residential real estate loans, which are collateralized by real estate. At December 31, 2023 and 2022, residential real estate loans accounted for 80% and 84%, respectively, of total gross loans. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California, which are dependent on the area economy for their livelihoods and servicing of their loan obligation. At December 31, 2023 and 2022, approximately 80% and 81%, respectively, of gross loans were originated with respect to properties or businesses located in the state of California.

Also, the loan portfolio consists of a loan product of one-, three-, five- or seven-year adjustable-rate mortgages that required a down payment of at least 35% (also referred to herein as “Advantage Loan Program loans”) which was terminated at the end of 2019 and continues to be the largest portion of gross residential loans. An internal review of the Advantage Loan Program and investigations conducted by the U.S. Department of Justice (the “DOJ”) and the OCC indicated that certain employees engaged in misconduct in connection with the origination of a significant number of such loans, including the falsification of information with respect to verification of income, the amount of income reported for borrowers, reliance on third parties and related documentation. Refer to Note 20—Commitments and Contingencies. This former loan product totaled $628,245 and $880,373 (includes residential real estate loans held for sale of $6,181 at December 31, 2022), or 58% and 63% of gross residential loans, at December 31, 2023 and 2022, respectively.

Employee Retention Credits Under the CARES Act

In the third quarter of 2021, the Company evaluated its eligibility for the employee retention credits (“ERC”) offered under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and determined it qualified for the ERC for the first three quarters of 2021. The Company qualified for the ERC because its gross receipts (which consisted of total interest income and other fees from banking activities and services) decreased more than 20% in 2021 from each of the respective quarters of 2019. The ERC was a refundable tax credit against certain employment taxes. The ERC was equal to 70% of qualified wages paid to employees (including employer qualified health plan expenses) and was capped for each employee for each of the first three quarters in 2021. As a result of the Company averaging 500 or fewer full-time employees in 2019, all wages paid to employees were eligible for the ERC (rather than just wages paid to employees not providing services). The Company has amended and filed certain payroll tax filings for a refund for each of the first three quarters of 2021.

The Company accounted for the ERC by analogy to International Accounting Standards 20 (“IAS 20”). Under IAS 20, the credit is recognized on a systematic basis over the periods in which the entity recognizes the payroll expenses for which the grant (tax credit) is intended to compensate when there is reasonable assurance that the entity will comply with any conditions attached to the grant and the grant will be received. The Company has made an accounting policy election to record the ERC benefit as a reduction to payroll expenses.

During the year ended December 31, 2021, the Company recorded a grant receivable of $6,529 and a corresponding benefit resulting in a net reduction of salaries and employee benefits expense in the consolidated statements of operations. The Company received cash refunds or credits of $2,130 and $2,254 during the year ended December 31, 2023 and 2022, respectively. The Company has a grant receivable of $2,145 and $4,275 which is recorded in other assets in the consolidated balance sheets at December 31, 2023 and 2022, respectively.

Debt Securities

Debt securities are classified as either available for sale or held to maturity. Management determines the classification of the debt securities when they are purchased.All debt securities were categorized as available for sale at December 31, 2023 and 2022.

Available for sale debt securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive loss, net of income taxes. Held to maturity securities are carried at amortized cost when management has the positive intent and ability to hold them to maturity. The amortized cost of debt securities classified as held to maturity or available for sale is adjusted for amortization of premiums (noncallable) and accretion of discounts. The Company amortizes premiums and accretes discounts using the effective interest method over the contractual life of the individual securities or, in the case of asset-backed securities, using the effective yield method over the estimated life of the individual securities.

Interest income includes amortization or accretion of purchase premium or discount. Gains and losses realized on the sales of available for sale debt securities are recorded on the settlement date and determined using the specific identification method. Held to maturity investment securities are stated at amortized cost and may have a realized gain or loss if the investment security is retired or redeemed before the original maturity date.

Effective January 1, 2023, for available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, the Company evaluates at the individual security level whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as a provision for (recovery of) credit losses. Losses are charged against the allowance for credit losses when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

For held to maturity debt securities, the Company utilizes the current expected credit loss approach to estimate lifetime expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of held to maturity debt securities to present the net amount expected to be collected from held to maturity debt securities.

Accrued interest receivable on available for sale debt securities is recorded separately from the amortized cost basis of the debt securities in the consolidated balance sheets and is excluded from the estimate of credit losses.

Prior to January 1, 2023, Management evaluated debt securities for other-than-temporary impairment at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. In determining other-than-temporary impairment for debt securities, management considered many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether a decline was other-than-temporary involved a high degree of subjectivity and judgment and was based on the information available to management at a point in time. A charge was recognized against income for all or a portion of the impairment if the loss was determined to be other-than-temporary.

Under the other-than-temporary impairment model, if the Company’s intention was to sell the debt security or it was more likely than not that the Company would be required to sell the debt security prior to the recovery of its amortized cost basis, the debt security was written down to fair value, and the full amount of any impairment charge was recorded as a loss in the consolidated statements of operations. If the Company did not intend to sell the debt security and it was more likely than not that the Company would not be required to sell the debt security prior to recovery of its amortized cost basis, only the current period credit loss of any impairment of a debt security was recognized in the consolidated statements of operations, with the remaining impairment recorded in other comprehensive income.

Equity Securities

Equity securities with readily determinable fair values are stated at fair value with unrealized and realized gains and losses reported in income. Those equity securities without readily determinable fair values are recorded at cost less any impairments, adjusted for subsequent observable price changes in orderly transactions for an identical or similar investment of the same issuer. Any changes in the carrying value of the equity investments are recognized in income.

Management performs a qualitative assessment each reporting period to identify impairment of equity securities without readily determinable fair values. When a qualitative assessment indicates that an impairment exists, management determines the fair value of the investment and if the fair value is less than the investment’s carrying value, an impairment charge is recorded in income equal to the difference between the fair value and the carrying amount of the investment.

Loans Held for Sale

The Company originates certain loans intended for sale in the secondary market. Loans held for sale are carried at the lower of amortized cost or fair value on an individual loan basis. The fair value of loans held for sale is primarily determined based on quoted prices for similar loans in active markets or outstanding commitments from third-party investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to non-interest income in the consolidated statements of operations.

Performing residential real estate loans that are held for sale are generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing right. On the sale of an originated loan, the servicing right is recorded at its estimated fair value. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold and are recorded as a component of non-interest income in the consolidated statements of operations.

Loans that are originated and classified as held for investment are periodically sold in order to manage liquidity, asset credit quality, interest rate risk or concentration risk. Loans that are reclassified into loans held for sale from loans held for investment, due to a change in intent, are recorded at the lower of cost or fair value.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at amortized cost, net of the allowance for credit losses. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, and deferred loan fees and costs. Accrued interest receivable related to loans is recorded separately from the amortized cost basis of loans on the consolidated balance sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct loan origination costs, are deferred and amortized over the contractual lives of the respective loans as a yield adjustment using the effective interest method.

Interest income on loans is accrued as earned using the interest method over the term of the loan. The accrual of interest income is discontinued at the time the loan is 90 days past due or earlier if conditions warrant and placed on nonaccrual status. In all cases, loans are placed on nonaccrual status at an earlier date if collection of principal or interest is considered doubtful. All interest accrued and not received for loans placed on nonaccrual status is reversed against interest income. Any payments received on nonaccrual loans are applied to interest income on a cash basis if the loan is considered well secured. Otherwise, all payments received are applied first to outstanding loan principal amounts and then to the recovery of the charged off loan amounts. Any excess is treated as a recovery of interest and fees. Loans are returned to accrual status after all principal and interest amounts contractually due are made and future payments are reasonably assured.

Allowance for Credit Losses - Loans (Effective January 1, 2023)

The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of held for investment loans to present the net amount expected to be collected on the loans. The allowance for credit losses is adjusted through a charge (recovery) to provision for (recovery of) credit losses in the consolidated statements of operations. When the Company determines that all or a portion of a loan is uncollectible, the appropriate amount is written off, and the allowance for credit losses is reduced by the same amount. The Company applies judgment to determine when a loan is deemed uncollectible; however, generally a loan will be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the allowance for credit losses when received. Portions of the allowance for credit losses may be allocated for specific credits; however, the entire allowance for credit losses is available for any credit that, in management’s judgment, should be charged off.

The Company estimates the allowance for credit losses on loans based on the underlying loans’ amortized cost. If the collection of principal becomes uncertain, the Company stops accruing interest and reverses the accrued but unpaid interest against interest income. The Company has made a policy election to exclude accrued interest receivable from the measurement of the allowance for credit losses. The allowance for credit losses process involves procedures to appropriately consider the unique characteristics of the Company’s portfolio segments. The allowance for credit losses is measured on a collective (pool) basis for portfolios of loans with similar risk characteristics and risk profiles. The Company’s portfolio segments include the following: (i) commercial real estate, (ii) commercial construction, (iii) commercial and industrial, (iv) residential real estate and (v) home equity lines of credit. These portfolio segments were identified based on their common characteristics: loan type/purpose of loan, underlying collateral type, historical/expected credit loss patterns, availability of credit quality indicators (i.e., FICO, risk rating, delinquency) and completeness of the historical information. Loans which do not share risk characteristics—generally, nonaccrual commercial and construction loans, and collateral-dependent loans where the borrower is experiencing financial difficulty— are individually assessed for credit loss. The Company has elected, as a practical expedient, to measure the allowance for credit losses on a collateral-dependent loan, where the borrower is experiencing financial difficulty, at the fair value of the collateral less estimated costs to sell. The portfolio segments are reviewed at least annually or when major changes occur in the loan portfolio to ensure that the segmentation is still appropriate.

The amount of the allowance for credit losses represents management’s best estimate of current expected credit losses on loans considering available information from internal and external sources, which is relevant to assessing collectability of the loans over the loans’ contractual terms, adjusted for expected prepayments. The contractual term excludes expected extensions, renewals and modifications unless: (i) management has a reasonable expectation at the reporting date that an individual borrower is experiencing financial difficulty and a modification of the loan will be executed, or (ii) the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

The Company estimates the allowance for credit losses using relevant available information related to past events, current conditions, and reasonable and supportable forecasts. In determining the total allowance for credit losses, the Company calculates the quantitative portion of the allowance for credit losses using the Probability of Default/Probability of Attrition model, which is a logistic regression model, and add the qualitative adjustments to the model results along with the results from any individual loan assessments.

The Probability of Default/Probability of Attrition model estimates the expected lifetime net charge off balance utilizing the following: (i) probability that the loan will stop performing or default; and (ii) probability that a loan will pay-off entirely prior to maturity. Data used in the development of the probability of default includes macroeconomic variables, including but not limited to unemployment rates, gross domestic product, and the Treasury Yield Curve and peer loss data, when required, which is sourced from a third party. The information is specific to each portfolio segment, though not necessarily solely reliant on internally sourced data. The Company then applies a recovery rate to reflect the recoveries over an approximate 10-year period.

The probability of default is estimated by analyzing the relationship between the historical performance of each loan pool and historical economic trends over a complete economic cycle. The probability of default for each pool is adjusted using a statistical model to reflect the current impact of certain macroeconomic variables and their expected changes over a reasonable and supportable forecast period of eight quarters. The Company determined that it was reasonably able to forecast the macroeconomic variables used in the forecast modeling processes with an acceptable degree of confidence for a total of eight quarters. This forecast period is followed by a reversion process whereby the macroeconomic variables are relaxed to revert to the average historical loss rates for periods after the forecasted eight-quarter period.

Management qualitatively adjusts the allowance for credit loss model results for risk factors not considered within the quantitative modeling processes but are nonetheless relevant in assessing the expected credit losses within the portfolio segments. These qualitative risk factor adjustments may increase or decrease management’s estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. Qualitative risk factors considered include, among other things, adjustments for imprecision inherent in the forecasts of macroeconomic variables, levels of criticized and classified loans and collection strategies management may employ to reduce these levels, portfolio dispersion and the unique characteristics of the Advantage Loan Program loans which could result in behavior different than our historic losses in a downside economic cycle.

For loans that do not share risk characteristics that are evaluated on an individual basis, specific allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. In such cases, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The Company reevaluates the fair value of collateral supporting collateral dependent loans on an annual basis.

As disclosed above, the Company has identified the following portfolio segments used in measuring its expected credit losses in the loan portfolio and their respective risk characteristics.

The Residential Real Estate Mortgage portfolio includes residential first mortgages and residential second mortgages. The degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s ability to repay in an orderly fashion. Economic trends determined by unemployment rates and other key economic indicators, particularly at the regional and local levels, are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating.

The Home Equity Lines of Credit portfolio includes residential second mortgages in the form of a revolving line of credit that requires interest only payments for a period followed by an amortizing period. These loans have a higher risk of default compared to first liens making it harder to rely on loan-to-value ratios and loan balances can fluctuate. These loans are secured by the residential real estate by serving as a second lien behind the first mortgage lien.

The Commercial Real Estate portfolio includes commercial loans made to many types of businesses secured by retail, multifamily, offices, hotels/single-room occupancy hotels, industrial and other commercial properties. Adverse economic developments or an overbuilt market may impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for the properties to produce sufficient cash flow to service debt obligations.

The Construction Loans portfolio is comprised of loans to builders and developers primarily for residential, commercial and mixed-use development. In addition to general commercial real estate risks, construction loans have additional risk of cost overruns, market deterioration during construction, lack of permanent financing, and no operating history.

The Commercial and Industrial portfolio is comprised of loans to many types of businesses for their operating needs of the business. The risk characteristics of these loans vary based on the borrowers’ business and industry as repayment is typically dependent on cash flows generated from the underlying business. These loans may be secured by real estate or other assets or may be unsecured and the Company typically seeks personal guarantees on commercial and industrial loans.

Allowance for Loan Losses (Prior to January 1, 2023)

The allowance for loan losses was a valuation allowance for probable incurred credit losses, increased or decreased by the provision for loan losses and decreased by charge offs less recoveries. Loan losses were charged against the allowance for loan losses when a loan was considered partially or fully uncollectible or had such little value that continuance as an asset was not warranted. Subsequent recoveries, if any, were credited to the allowance for loan losses. Management estimated the allowance for loan losses balance using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, economic conditions and other factors. Allocations of the allowance for loan losses may be made for specific loans, but the entire allowance for loan losses was available for any loan that, in management’s judgment, should be charged off.

The allowance for loan losses consisted of specific and general components. The specific component related to loans that were individually classified as impaired. The general component covers all other loans and was based on historical loss experience adjusted for general economic conditions and other qualitative factors by portfolio segment. The historical loss experience was determined by portfolio segment and was based on the actual loss history experienced over the most recent three-year period. Significant judgment was used to assign each qualitative factor a level of risk, which was translated into additional basis points added to the historical loss rates. These economic and other risk factors included consideration of the following: levels of and trends in delinquencies and classified loans; trends in loan growth; effects of any changes in underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staff; national and local economic trends and conditions as indicated by unemployment rates, consumer confidence and household income; industry conditions such as property values and vacancy risk; and effects of changes in credit concentrations.

Mortgage Servicing Rights, net

Servicing assets (mortgage servicing rights) are recognized separately when residential real estate loans are sold with servicing rights retained by the Company. Mortgage servicing rights are initially recorded at fair value, which is determined based on an internal valuation model that calculates the present value of estimated future net servicing income. The servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into non-interest income in the consolidated statements of operations in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

On a quarterly basis, servicing assets are evaluated for impairment based upon the fair value of the mortgage servicing rights compared to their carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. If the carrying amount of an individual grouping exceeds fair value, impairment is recorded on that grouping so that the servicing asset is carried at fair value. Impairment is recognized through a valuation allowance for an individual grouping. If it is later determined that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance may be recorded as an increase to income. Changes in valuation allowances are reported within net servicing income (loss) on the consolidated statements of operations. The fair values of servicing assets are subject to significant fluctuations due to changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan, and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing income. Servicing fees totaled $551, $905 and $1,841 for the year ended December 31, 2023, 2022 and 2021, respectively. Late fees and ancillary fees related to loan servicing were not material for the periods presented.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Federal Home Loan Bank Stock

The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock based on the level of FHLB borrowings and other factors and may invest additional amounts. The FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of its par value. The FHLB stock does not have a readily determinable fair value and no quoted market value as the ownership is restricted to member institutions. Also, the FHLB stock is pledged as collateral on FHLB borrowings. Cash and stock dividends on FHLB stock are reported as income in interest and dividends on investment securities and restricted stock in the consolidated statements of operations. Cash dividends received amounted to $653, $433 and $609 for the year ended December 31, 2023, 2022 and 2021, respectively.

Federal Reserve Bank Stock

The Bank is a member of its regional Federal Reserve Bank. As a covered savings association, the Bank is required to own a certain amount of capital stock of the Federal Reserve Bank of Chicago, of which 50% has been paid. The remaining 50% is subject to a call by the Federal Reserve Bank. The capital stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery of its par value. The capital stock does not have a readily determinable fair value and no quoted market value as ownership is restricted to member institutions. Cash and stock dividends on the Federal Reserve Bank stock are reported as income in interest and dividends on investment securities and restricted stock in the consolidated statements of operations. Cash dividends received amounted to $106 for the year ended December 31, 2023.

Company-Owned Life Insurance

The Company owns life insurance policies on retired and former employees and officers. These policies are recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income from these policies and changes in the cash surrender value of the life insurance policies are recorded in non-interest income in the consolidated statements of operations and are generally not subject to income taxes.

During the year ended December 31, 2022, the Company surrendered certain life insurance policies related to former executives and a controlling shareholder. Refer to Note 15—Employee Benefit Plans.

Long-Lived Assets

Long-lived assets, such as leasehold improvements and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require long-lived assets or asset groups to be tested for possible impairment, the Company compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, such as discounted cash flow models and third-party independent appraisals.

Liability for Unfunded Commitments (Effective January 1, 2023)

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for these off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded.

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk through a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The estimate of expected credit losses generally follows the same methodology as the funded loans by utilizing the loss rates generated for each portfolio segment with an adjustment for the probability of funding to occur. The liability for unfunded commitments, which is recorded in other liabilities in the consolidated balance sheets, is adjusted through the provision for (recovery of) credit losses.

Mortgage Repurchase Liability

In connection with portfolio loans sold in the secondary market, the Company makes customary representations and warranties about certain characteristics of each loan. The Company establishes a liability which may result from breaches in such representations and warranties. The mortgage repurchase liability reflects management’s estimate of such losses based on a combination of factors. The Company’s estimation process requires management to make subjective and complex judgments about matters that are inherently uncertain, such as expectations of future repurchase demands and economic factors. The actual loss on repurchases could vary significantly from the recorded repurchase liability, depending on the outcome of various factors.

A loss incurred on the repurchase of the Advantage Loan Program loans is charged against the mortgage repurchase liability, except when the unpaid principal balance of the loan is greater than its fair value on the date of repurchase. The amount in excess of fair value is recorded as a loss on repurchase in other non-interest expense. The disposition of the mortgage servicing rights related to servicing the respective loans (as mortgage servicing of these loans was retained at the time of sale) is recorded in net servicing income (loss) in non-interest income in the consolidated statements of operations. The Advantage Loan Program loans that have been repurchased are then included in loans held for investment. The mortgage repurchase liability is included in other liabilities in the consolidated balance sheets.

Legal Contingencies and Litigation Accruals

On a quarterly basis, management assesses potential losses in relation to their legal proceedings and other pending or threatened legal matters. If a loss is considered probable and the amount can be reasonably estimated, the Company recognizes an expense for the estimated loss. Estimates of any such loss are subjective in nature and require the evaluation of numerous facts and assumptions as to future events, including the application of legal precedent that may be conflicting. To the extent these estimates are more or less than the actual liability resulting from the resolution of these matters, net income (loss) would be increased or decreased accordingly. If the differences are material, the consolidated financial statements could be materially impacted. The Company accounts for the related legal costs of litigating a claim and taking legal actions by expensing the legal costs as incurred.

Revenue from Contracts with Customers

In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services as performance obligations are satisfied.

The majority of the Company’s revenues are from interest income and other sources, including loans and investment securities, as well as fees related to mortgage servicing activities, which are not within the scope of ASC 606 and are instead subject to other accounting guidance. The Company’s services that are within the scope of ASC 606 are recorded within non-interest income, which includes service charges on deposit accounts, interchange income and other service charges and fees. Descriptions of these activities that are within the scope of ASC 606, which are presented in the consolidated statements of operations as components of non-interest income, are as follows:

Service charges on deposit accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligations. Service charges on deposit accounts are withdrawn from the customer’s account balance.

Interchange fees: The Company earns interchange fees from debit cardholder transactions conducted through the MasterCard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Such interchange activity is shown on a net basis through non-interest income, other income.

Other service charges and fees: Other charges and fees includes revenue generated from wire transfers, lockboxes and the issuance of checks. Such fees are recognized at the point in time the customer requests the service, and the service is rendered.

Stock-based Compensation

Compensation cost is recognized for stock options and restricted stock awards issued to employees and independent members of the Company’s board of directors, based on the fair value of these awards at the date of grant. The fair value of stock options is estimated using a Black-Scholes option pricing model, and the fair value of restricted stock awards is based on the market price of the Company’s common stock at the date of grant reduced by the present value of dividends per share expected to be paid during the period the shares are not vested.

Compensation cost is recorded over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recorded on a straight-line basis over the requisite service period of the entire award. Forfeitures are recorded in the period in which they occur.

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on available for sale debt securities, net of income taxes, which is also recognized as a separate component of shareholders’ equity. The Company releases the income tax effects on unrealized gains and losses on available for sale debt securities that are reported in other comprehensive income (loss) on a security-by-security basis when debt securities are sold.

Income Taxes

Income taxes are provided for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period the change occurs. A deferred tax valuation allowance is established if it is more likely than not that a deferred tax asset will not be realized. Deferred tax assets are reduced, through a valuation allowance, if necessary, by the amount of such benefits that are not expected to be realized based on current available evidence.

A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Income (Loss) per Share, Basic and Diluted

Basic income (loss) per share represents net income (loss) divided by the weighted average number of common shares outstanding during the period. In periods of income, diluted income per share represents net income divided by the weighted average number of common shares outstanding during the period, plus the effect of outstanding potential dilutive common shares. In periods of a net loss, basic and diluted per share information are the same.

Operating Segments

The Company’s operations are in the financial services industry. Operations are managed and financial performance is evaluated on a Company-wide basis since discrete financial information is not available other than on a consolidated basis. Accordingly, management evaluates the performance of the Company’s business based on one reportable segment, community banking. The chief executive officer assesses the Company’s performance and decides how to allocate resources based on net income that also is reported on the consolidated statements of operations as consolidated net income.

New Accounting Standards Adopted in 2023

In March 2022, the FASB issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which eliminates the recognition and measurement accounting guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain loan refinancings and restructurings made to borrowers experiencing financial difficulty. Under the new guidance, creditors should evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan under the general loan modification guidance. Public business entities are required to disclose current-period gross write-offs by year of origination for loan financing receivables and net investment in leases. The Company adopted the provisions of ASU 2022-02 on January 1, 2023, along with its adoption of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) as discussed below. On the date of adoption, the Company recorded a cumulative effect adjustment of $276, net of tax, to decrease the opening balance of retained earnings as of January 1, 2023, for the initial application of ASU 2022-02. The cumulative effect adjustment (before tax) represents the difference between the allowance previously determined under the troubled debt restructuring model and the allowance determined under the new credit loss accounting model for such loans on the adoption date.

In June 2016, the FASB issued ASU 2016-13 (and subsequent amendments), which significantly changes estimates for credit losses related to financial assets measured at amortized cost, including loan receivables and other contracts, such as off-balance sheet credit exposure, specifically, loan commitments and standby letters of credit, financial guarantees and other similar instruments. The guidance replaced the current incurred loss accounting model with an expected loss model, which is referred to as the current expected credit loss model. The current expected credit loss model requires the measurement of the lifetime expected credit losses on financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Additionally, ASU 2016-13 requires credit losses on available for sale debt securities to be presented as an allowance rather than as a write-down under the previous other-than-temporary impairment model. The guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio.

The Company adopted ASU 2016-13 on January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while amounts for prior periods continue to be reported in accordance with previously applicable U.S. GAAP. The Company recorded a cumulative effect adjustment of $778, net of tax, to increase the opening balance of retained earnings as of January 1, 2023, for the initial application of current expected credit loss model. Upon adoption, the allowance for credit losses for loans decreased by $1,651 primarily driven by the allowance for credit losses on the construction loan portfolio due to the short contractual maturities of the loans in this portfolio segment. This was partially offset by an increase in the allowance for credit losses in both the residential real estate and commercial real estate portfolio segments which have longer contractual maturities. In addition, the Company established a liability for unfunded commitments of $579.

The details of the changes and quantitative impact on the financial statement line items in the consolidated balance sheet as of January 1, 2023 for the adoption of ASU 2016-13, along with the adoption of ASU 2022-02, were as follows:


	Prior to		Adjustments for		Adjustments for		After
	Adoption		ASU 2016-13		ASU 2022-02		Adoption
Assets:
Allowance for credit losses – loans	$	45,464	$	(1,651)	$	380	$	44,193
Liabilities:
Liability for unfunded commitments		—		579		—		579
Pretax cumulative effect adjustment of a change in accounting principle				(1,072)		380
Less: income taxes				294		(104)
Cumulative effect adjustment of a change in accounting principle, net of tax			$	(778)	$	276

For all classes of financial assets deemed collateral dependent, the Company elected the practical expedient to estimate the expected credit losses based on the respective collateral’s fair value less cost to sell. The Company also made an accounting policy election to not measure an allowance for credit losses on accrued interest receivable and to present accrued interest receivable separately from the related financial asset on the consolidated balance sheet.

The Company’s available for sale debt securities are comprised of debt, mortgage-backed securities and collateralized mortgage obligations. The debt, mortgage-backed securities and the majority of the collateralized mortgage obligations are issued by the U.S. government, its agencies and government-sponsored enterprises. The Company has a long history with no credit losses from these issuers. Thus, the Company has not recorded an allowance for credit losses for its available for sale debt securities at the date of adoption.

As stated, the comparative prior period information presented before January 1, 2023 has not been adjusted and continues to be reported under the Company’s historical allowance for loan losses policies.

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires greater disaggregation of information in a reporting entity’s effective tax rate reconciliation as well as disaggregation of income taxes paid by jurisdiction. This ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09 on its income tax disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires more disaggregated expense information about a public entity’s reportable segments if the significant segment expenses are regularly provided to the chief operating decision maker and included in each reported measure of segment profit or loss. Additionally, ASU 2023-07 allows public entities to disclose more than one measure of segment profit or loss used by the chief operating decision maker. For public entities that have one reportable segment, ASU 2023-07 confirmed that all of the disclosures required in the segment guidance, including disclosing a measure of segment profit or loss and reporting significant segment expense and other items apply to these entities. This ASU 2023-07 does not change the definition of a segment, the method of determining segments, or the criteria for aggregating operating segments into reportable segments. The ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The ASU 2023 – 07 should be adopted retrospectively as of the beginning of the earliest period presented. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-07 on its segment reporting disclosures.

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Taxes

Income Taxes

Note 17—Income Taxes

The components of the income tax expense (benefit) are as follows:


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	(760)	$	1,636	$	4,814
State		(1,015)		214		1,429
Deferred:
Federal		3,290		3,251		2,088
State		1,634		1,528		1,312
Total income tax expense	$	3,149	$	6,629	$	9,643

The reconciliation between income taxes computed at the U.S. federal statutory income tax rate to our income tax expense is as follows:


	Year Ended December 31,
	2023		2022		2021
Income tax expense (benefit) at U.S. federal statutory rate of 21%	$	2,218	$	(1,589)	$	6,937
Effect of:
State taxes, net of federal benefit		489		1,376		2,165
Taxable income on surrender of company-owned life insurance		—		2,760		—
Contingent loss		—		3,830		—
Nontaxable cancellation of split-dollar life insurance		—		(863)		—
Nondeductible items		447		731		480
Other, net		(5)		384		61
Total income tax expense	$	3,149	$	6,629	$	9,643

The components of deferred tax assets and liabilities at December 31, 2023 and 2022 comprised the following:


	December 31,
	2023		2022
Deferred tax assets:
Allowance for credit losses	$	8,162	$	12,518
Net unrealized loss on investment securities		5,815		7,594
Operating lease liabilities		3,377		4,402
Compensation plans		1,535		963
Tax loss carryforwards		1,128		205
Depreciation		469		482
State franchise tax		1		358
Mortgage repurchase liability		203		223
Interest on nonaccrual loans		108		1,031
Accrued expenses		—		980
Loans held for sale valuation allowance		—		121
Other		305		186
Total deferred tax assets		21,103		29,063
Less: valuation allowance		(158)		(120)
Total deferred tax assets, net of valuation allowance		20,945		28,943
Deferred tax liabilities:
Operating lease right-of-use asset		(3,086)		(4,075)
Mortgage servicing rights		(415)		(494)
Other		(485)		(670)
Total deferred tax liabilities		(3,986)		(5,239)
Deferred tax asset, net	$	16,959	$	23,704

At December 31, 2023, the Company had federal net operating loss carryforwards of $2,126 that can be carried forward indefinitely. The Company also had state net operating loss carryforwards of $6,114 that will expire in 2043. A capital loss of $608 can be carried forward and utilized against capital gains during the carryforward period which expires in December 2025. The Company has recorded a deferred tax asset of $1,128 reflecting the benefit of the tax loss carryforwards. As of December 31, 2023, a valuation allowance of $158 has been established against the portion of the deferred tax asset that is more likely than not to be realized.

Realization of the remaining deferred tax assets is dependent upon the generation of future taxable income. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. Management evaluated the deferred tax assets for recoverability by considering negative and positive evidence. Based on the weight of all available evidence, the Company believes it is more likely than not that the deferred tax asset at December 31, 2023 will be realized through the future reversals of existing taxable temporary differences and projected future taxable income.

The Company is subject to U.S. federal income tax as well as income taxes of the state of New York and California. The Company’s federal income tax returns are subject to examination by the taxing authorities for the years after 2019.

There were no unrecognized tax benefits at December 31, 2023, and the Company does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Debt Securities (Tables)

12 Months Ended

Dec. 31, 2023

Debt Securities

Summary of available for sale debt securities, at fair value, continuous unrealized loss position


	December 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury and Agency securities	$	49,836	$	(1)	$	125,183	$	(4,175)	$	175,019	$	(4,176)
Mortgage-backed securities		—		—		31,927		(3,830)		31,927		(3,830)
Collateralized mortgage obligations		10,297		(221)		111,554		(12,845)		121,851		(13,066)
Collateralized debt obligations		—		—		141		(10)		141		(10)
Total	$	60,133	$	(222)	$	268,805	$	(20,860)	$	328,938	$	(21,082)


	December 31, 2022
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury and Agency securities	$	100,815	$	(2,839)	$	44,605	$	(4,619)	$	145,420	$	(7,458)
Mortgage-backed securities		5,792		(139)		30,941		(4,516)		36,733		(4,655)
Collateralized mortgage obligations		69,088		(3,169)		64,715		(11,660)		133,803		(14,829)
Collateralized debt obligations		—		—		147		(10)		147		(10)
Total	$	175,695	$	(6,147)	$	140,408	$	(20,805)	$	316,103	$	(26,952)

Summary of amortized cost and fair value of debt securities available for sale


	December 31, 2023
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	253,107	$	57	$	(4,176)	$	248,988
Mortgage-backed securities		35,757		—		(3,830)		31,927
Collateralized mortgage obligations		151,196		27		(13,066)		138,157
Collateralized debt obligations		151		—		(10)		141
Total	$	440,211	$	84	$	(21,082)	$	419,213


	December 31, 2022
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	175,878	$	17	$	(7,458)	$	168,437
Mortgage-backed securities		41,388		—		(4,655)		36,733
Collateralized mortgage obligations		153,066		4		(14,829)		138,241
Collateralized debt obligations		157		—		(10)		147
Total	$	370,489	$	21	$	(26,952)	$	343,558

Schedule of information pertaining to sales of available for sale debt securities


	Year Ended December 31,
	2023		2022		2021
Proceeds from the sale of debt securities	$	9,578	$	6,999	$	—

Gross realized gains	$	2	$	33	$	—
Gross realized losses		(115)		(1)		—
Total net realized gains (loss)	$	(113)	$	32	$	—

Schedule of amortized cost and fair value of debt securities available for sale, shown by contractual maturity


	Amortized		Fair
	Cost		Value
U.S. Treasury and Agency securities:
Due less than one year	$	173,633	$	173,398
Due after one year through five years		79,474		75,590
Mortgage-backed securities		35,757		31,927
Collateralized mortgage obligations		151,196		138,157
Collateralized debt obligations		151		141
Total	$	440,211	$	419,213

Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Employee Stock Option
Stock-based Compensation
Maximum term of stock awards granted	10 years
Weighted Average Remaining Contractual Term
Stock-based compensation costs recognized	$ 1	$ (6)	$ 173
Restricted Stock
Stock-based Compensation
Number of share instruments issued	1,195,838	231,842	252,123
Weighted Average Remaining Contractual Term
Shares withheld in order to pay employee tax liabilities on vested awards		32,929	8,536
Stock-based compensation costs recognized	$ 2,096	$ 906	$ 453
Employee tax liability associated with restricted stock awards the vested during the period	245	$ 216	$ 46
Total unrecognized compensation cost - restricted stock awards	$ 5,251
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period	2 years 4 months 24 days
Number of Shares
Nonvested, Opening balance	390,125
Granted	1,195,838
Vested	(157,870)
Forfeited	(63,523)
Nonvested, Ending balance	1,364,570	390,125
Weighted Average Grant Date Fair Value
Nonvested, Opening balance	$ 6.17
Granted	5.15
Vested	6.27
Forfeited	6.02
Nonvested, Ending balance	$ 5.27	$ 6.17
Grant Date Fair Value of Restricted Stock that Vested During the year
Fair value of restricted stock awards vested	$ 911	$ 673
Restricted Stock \| Key employee
Stock-based Compensation
Number of share instruments issued	1,135,838	186,842	207,123
Weighted average grant-date fair value	$ 5.10	$ 6.77	$ 5.05
Restricted Stock \| Non-employee directors Restricted Stock Awards
Stock-based Compensation
Number of share instruments issued	60,000	45,000
Weighted average grant-date fair value	$ 6.09	$ 5.75	$ 4.71
2017 Omnibus Equity Incentive Plan
Stock-based Compensation
Number of shares authorized	4,237,100
2017 Omnibus Equity Incentive Plan \| Employee Stock Option
Stock-based Compensation
Percentage of awards vesting	50.00%
Number of Shares
Outstanding at January 1, 2023	349,545
Forfeited/expired	(9,150)
Outstanding at December 31, 2023	340,395	349,545
Exercisable at December 31, 2023	340,395
Weighted Average Exercise Price
Outstanding at January 1, 2023	$ 5.19
Forfeited/expired	13.73
Outstanding at December 31, 2023	4.96	$ 5.19
Exercisable at December 31, 2023	$ 4.96
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term (Years)	6 years 2 months 23 days	7 years 2 months 1 day
Weighted Average Remaining Contractual Term, Exercisable	6 years 2 months 23 days
Aggregate Intrinsic Value	$ 531	$ 627
Aggregate Intrinsic Value Exercisable	$ 531
2017 Omnibus Equity Incentive Plan \| Stock Options granted prior to 2020 \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting	50.00%
2017 Omnibus Equity Incentive Plan \| Stock Options granted prior to 2020 \| Awards vesting at the end of the fourth year
Stock-based Compensation
Percentage of awards vesting	50.00%
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020
Stock-based Compensation
Vesting period	3 years
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020 \| Awards vesting on the first anniversary of the grant date
Stock-based Compensation
Percentage of awards vesting	33.33%
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020 \| Awards vesting at the end of the second year
Stock-based Compensation
Percentage of awards vesting	33.33%
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020 \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting	33.33%
2017 Omnibus Equity Incentive Plan \| Restricted Stock
Stock-based Compensation
Vesting period	3 years
Weighted Average Remaining Contractual Term
Shares withheld in order to pay employee tax liabilities on vested awards	42,753
2017 Omnibus Equity Incentive Plan \| Restricted Stock \| Awards vesting on the first anniversary of the grant date
Stock-based Compensation
Percentage of awards vesting	33.33%
2017 Omnibus Equity Incentive Plan \| Restricted Stock \| Awards vesting at the end of the second year
Stock-based Compensation
Percentage of awards vesting	33.33%
2017 Omnibus Equity Incentive Plan \| Restricted Stock \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting	33.33%
2020 Omnibus Equity Incentive Plan
Stock-based Compensation
Number of shares authorized	3,979,661
Number of shares available for future grants	2,299,858

Commitments and Contingencies - Mortgage Repurchase Liability and Offers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2020
Commitments and Contingencies
Unpaid principal balance, Loans		$ 1,613,385
Unpaid principal balance, financing	$ 1,319,568	1,613,385
Loss charged against mortgage repurchase liability		1,506	$ 5,511
Other non-interest expense	7,388	9,772	7,486
Mortgage repurchase liability	750	809	2,954	$ 9,699
Advantage Loan Program
Commitments and Contingencies
Percentage of loans offered to each of investors to repurchase					100.00%
Unpaid principal balance, Loans			173,829
Unpaid principal balance, financing	16,902
Disposition of mortgage servicing rights		863
Advantage Loan Program loans repurchased
Commitments and Contingencies
Unpaid principal balance, Loans		65,621
Disposition of mortgage servicing rights			2,381
Loss charged against mortgage repurchase liability		1,506	5,511
Other non-interest expense		2,303
Residential Real Estate
Commitments and Contingencies
Mortgage repurchase liability		750	$ 809
Residential Real Estate \| Obligation to repurchase receivables sold
Commitments and Contingencies
Unpaid principal balance, Loans		112,542
Unpaid principal balance, financing	49,667
Residential Real Estate \| Advantage Loan Program \| Obligation to repurchase receivables sold
Commitments and Contingencies
Unpaid principal balance, Loans		$ 43,274
Unpaid principal balance, financing	$ 33,044

Fair Value (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value

Schedule of assets measured at fair value on a recurring basis categorized by level of inputs


			Fair Value Measurements at
			December 31, 2023
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury and Agency securities	$	248,988	$	219,582	$	29,406	$	—
Mortgage-backed securities		31,927		—		31,927		—
Collateralized mortgage obligations		138,157		—		138,157		—
Collateralized debt obligations		141		—		—		141
Equity securities		4,457		4,457		—		—


			Fair Value Measurements at
			December 31, 2022
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury and Agency securities	$	168,437	$	116,355	$	52,082	$	—
Mortgage-backed securities		36,733		—		36,733		—
Collateralized mortgage obligations		138,241		—		138,241		—
Collateralized debt obligations		147		—		—		147
Equity securities		4,396		4,396		—		—

Schedule of reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Collateralized Debt Obligations
	2023		2022
Balance of recurring Level 3 assets at beginning of year	$	147	$	203
Total gains or losses (realized/unrealized):
Included in other comprehensive income (loss)		—		(2)
Principal maturities/settlements		(6)		(54)
Balance of recurring Level 3 assets at end of year	$	141	$	147

Schedule of assets measured at fair value on a nonrecurring basis categorized by level of inputs

Fair Value Measurements at December 31, 2023

Quoted Prices in

Significant

Active Markets

Other

Significant

Identical

Observable

Unobservable

Fair

Assets

Inputs

Value

(Level 1)

(Level 2)

(Level 3)

Mortgage servicing rights

576

—

576

Fair Value Measurements at December 31, 2022

Quoted Prices in

Significant

Active Markets

Other

Significant

Identical

Observable

Unobservable

Fair

Assets

Inputs

Value

(Level 1)

(Level 2)

(Level 3)

Mortgage servicing rights

391

—

391

Schedule of quantitative information about nonrecurring Level 3 fair value measurements


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2023
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Mortgage servicing rights	$	576	Discounted cash flow	Discount rate	10.0% - 12.5%
					(12.2)%
				Prepayment speed	6.9% - 22.7%
					(18.5)%
				Default rate	0.1% - 0.2%
					(0.1)%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2022
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Mortgage servicing rights	$	391	Discounted cash flow	Discount rate	10.0% - 12.5%
					(12.2)%
				Prepayment speed	7.5% - 22.4%
					(19.0)%
				Default rate	0.1% - 0.2%
					(0.2)%

(1)	The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.

Schedule of carrying amounts and estimated fair values of financial instruments not carried at fair value


	Fair Value Measurements at December 31, 2023
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	577,967	$	577,967	$	577,967	$	—	$	—
Interest-bearing time deposits with other banks		5,226		5,226		5,226		—		—
Loans, net		1,319,568		1,313,282		—		—		1,313,282

Financial Liabilities
Time deposits		873,220		874,274		—		874,274		—
Federal Home Loan Bank borrowings		50,000		49,370		—		49,370		—


	Fair Value Measurements at December 31, 2022
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	379,798	$	379,798	$	379,798	$	—	$	—
Interest-bearing time deposits with other banks		934		934		934		—		—
Loans held for sale		7,725		7,833		—		7,833		—
Loans, net		1,613,385		1,516,771		—		—		1,516,771

Financial Liabilities
Time deposits		861,733		855,566		—		855,566		—
Federal Home Loan Bank borrowings		50,000		48,360		—		48,360		—
Subordinated Notes, net		65,271		65,355		—		65,355		—

Deposits

12 Months Ended

Dec. 31, 2023

Deposits

Deposits

Note 8—Deposits

Time deposits, included in interest-bearing deposits, were $873,220 and $861,733 at December 31, 2023 and 2022, respectively. The Company did not have any brokered deposits at December 31, 2023 and 2022.

Time deposits that meet or exceed the FDIC insurance limit of $250 were $255,222 and $243,861 at December 31, 2023 and 2022, respectively.

At December 31, 2023, the scheduled maturities of time deposits for the next five years were as follows:


2024	$	761,709
2025		102,605
2026		7,447
2027		1,303
2028		156

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Allowance for credit losses	$ 8,162	$ 12,518
Net unrealized loss on investment securities	5,815	7,594
Operating lease liabilities	3,377	4,402
Compensation plans	1,535	963
Tax loss carryforwards	1,128	205
Depreciation	469	482
State franchise tax	1	358
Mortgage repurchase liability	203	223
Interest on nonaccrual loans	108	1,031
Accrued expenses		980
Loans held for sale valuation allowance		121
Other	305	186
Total deferred tax assets	21,103	29,063
Less: valuation allowance	(158)	(120)
Total deferred tax assets, net of valuation allowance	20,945	28,943
Deferred tax liabilities:
Operating lease right-of-use asset	(3,086)	(4,075)
Mortgage servicing rights	(415)	(494)
Other	(485)	(670)
Total deferred tax liabilities	(3,986)	(5,239)
Deferred tax asset, net	$ 16,959	$ 23,704

Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2023

Income (Loss) Per Share

Schedule of computation of income (loss) per share, basic and diluted

Basic income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted income per common share further includes any common shares available to be issued upon the exercise of outstanding stock options and restricted stock awards if such inclusions would be dilutive. The Company determines the potentially dilutive common shares using the treasury stock method. In periods of a net loss, basic and diluted per share information are the same. The following table presents the computation of income (loss) per share, basic and diluted:


	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income (loss)	$	7,413	$	(14,194)	$	23,390

Denominator:
Weighted average common shares outstanding, basic		50,630,928		50,346,198		50,049,902
Weighted average effect of potentially dilutive common shares:
Stock options		89,910		—		55,060
Restricted stock		57,721		—		34,348
Weighted average common shares outstanding, diluted		50,778,559		50,346,198		50,139,310

Income (loss) per share:
Basic	$	0.15	$	(0.28)	$	0.47
Diluted	$	0.15	$	(0.28)	$	0.47

Schedule of anti-dilutive shares that were excluded from the computation of weighted average diluted shares outstanding


	Year Ended December 31,
	2023	2022	2021
Stock options	44,578	349,808	69,546
Restricted stock	664,864	372,395	78,418
Total	709,442	722,203	147,964

Loans - Disaggregation of the Allowance For Credit Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 11
Collectively evaluated for impairment	45,453
Total ending allowance balance	45,464	$ 56,548	$ 72,387
Loans:
Loans individually evaluated for impairment	2,637
Loans collectively evaluated for impairment	1,656,212
Total loans	1,658,849
Residential Real Estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment	11
Collectively evaluated for impairment	27,940
Total ending allowance balance	27,951	32,202	32,366
Loans:
Loans individually evaluated for impairment	45
Loans collectively evaluated for impairment	1,391,231
Total loans	1,391,276
Commercial Real Estate
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	11,694
Total ending allowance balance	11,694	12,608	21,942
Loans:
Loans collectively evaluated for impairment	221,669
Total loans	221,669
Construction loans
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	5,781
Total ending allowance balance	5,781	11,730	17,988
Loans:
Loans individually evaluated for impairment	2,485
Loans collectively evaluated for impairment	42,018
Total loans	44,503
Commercial and industrial
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	38
Total ending allowance balance	38	$ 8	$ 91
Loans:
Loans individually evaluated for impairment	107
Loans collectively evaluated for impairment	1,289
Total loans	1,396
Other consumer
Loans:
Loans collectively evaluated for impairment	5
Total loans	$ 5

FHLB Borrowings - Other Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
FRB
Other Borrowings
Outstanding balance	$ 0
Prepayment penalty	0
Unused borrowing capacity	$ 65,000
FRB \| Maximum
Other Borrowings
Maturity period	1 year
Other Banks
Other Borrowings
Maximum borrowing capacity	$ 80,000	$ 80,000
Outstanding balance	$ 0	$ 0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Assets
Cash and due from banks	$ 577,967	$ 379,798
Interest-bearing time deposits with other banks	5,226	934
Debt securities available for sale, at fair value (amortized cost $440,211 and $370,489 at December 31, 2023 and 2022, respectively)	419,213	343,558
Equity securities	4,703	4,642
Loans held for sale		7,725
Loans, net of allowance for credit losses of $29,404 and $45,464 at December 31, 2023 and 2022, respectively	1,319,568	1,613,385
Accrued interest receivable	8,509	7,829
Mortgage servicing rights, net	1,542	1,794
Leasehold improvements and equipment, net	5,430	6,301
Operating lease right-of-use assets	11,454	14,800
Federal Home Loan Bank stock, at cost	18,923	20,288
Federal Reserve Bank stock, at cost	9,048
Company-owned life insurance	8,711	8,501
Deferred tax asset, net	16,959	23,704
Other assets	8,750	11,476
Total assets	2,416,003	2,444,735
Liabilities
Noninterest-bearing deposits	35,245	53,041
Interest-bearing deposits	1,968,741	1,900,996
Total deposits	2,003,986	1,954,037
Federal Home Loan Bank borrowings	50,000	50,000
Subordinated Notes, net		65,271
Operating lease liabilities	12,537	15,990
Other liabilities	21,757	46,810
Total liabilities	2,088,280	2,132,108
Commitments and contingencies (Note 20)
Shareholders' equity
Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding
Common stock, no par value, authorized 500,000,000 shares; issued and outstanding 52,070,361 shares and 50,795,871 shares at December 31, 2023 and 2022, respectively	84,323	83,295
Additional paid-in capital	16,660	14,808
Retained earnings	241,964	234,049
Accumulated other comprehensive loss	(15,224)	(19,525)
Total shareholders' equity	327,723	312,627
Total liabilities and shareholders' equity	$ 2,416,003	$ 2,444,735

FHLB Borrowings

12 Months Ended

Dec. 31, 2023

FHLB Borrowings

FHLB Borrowings

Note 9—FHLB Borrowings

FHLB Advances

At December 31, 2023 and 2022, the Company has a long-term fixed-rate FHLB advance of $50,000 with a maturity date of May 2029. The FHLB advance requires monthly interest-only payments at 1.96% per annum with the principal amount due on the maturity date and may contain a prepayment penalty if paid before maturity. The advance is callable by the FHLB in May 2024.

In September 2022, the Company entered into a short-term variable-rate advance of $35,000 with a maturity date of March 2023. This short-term variable-rate advance was repaid in September 2022.

Additionally, the Company repaid $100,000 in long-term fixed rate advances that were called in May 2022. In the fourth quarter of 2021, the Company repaid $157,000 in long-term fixed rate advances, before their maturity date without incurring a prepayment penalty.

FHLB Overdraft Line of Credit and Letters of Credit

The Company has established a short-term overdraft line of credit agreement with the FHLB, which provides for maximum borrowings of $20,000. The overdraft line of credit was not used during the year ended December 31, 2023 and 2022. Borrowings accrue interest at a variable-rate based on the FHLB’s overnight cost of funds rate, which was 5.76% and 4.74% at December 31, 2023 and 2022, respectively. At December 31, 2023 and 2022, there were no outstanding borrowings under this agreement. The overdraft line of credit was renewed in October 2023. The overdraft line of credit is issued for a one-year term and automatically extends for an additional one-year term unless terminated in advance of the renewal by the Company.

The Company entered into irrevocable standby letters of credit arrangements with the FHLB to provide credit support for certain of its obligations related to its commitment to repurchase certain pools of Advantage Loan Program loans. An irrevocable standby letter of credit of $4,000 has a 36-month term and expires in July 2024. This letter of credit was reduced to $2,000 during the second quarter of 2022; thereby, the Company has total available letters of credit of $2,000 at December 31, 2023 and 2022, respectively. There were no borrowings outstanding on these standby letters of credit during the year ended December 31, 2023 and 2022.

The long-term fixed-rate advance and the overdraft line of credit are collateralized by certain investment securities and loans. Based on this collateral and holdings of FHLB stock, the Company had additional borrowing capacity with the FHLB of $311,183 at December 31, 2023. Refer to Note 3—Debt Securities for further information on securities pledged and Note 5—Loans for further information on loans pledged.

Other Borrowings

The Company has available unsecured federal funds credit lines with three banks totaling $80,000 at December 31, 2023 and 2022. There were no borrowings under these unsecured credit lines during the year ended December 31, 2023 and 2022.

In addition, as a result of the bank failures occurring in the first half of 2023, the FRB has made available to banks a new borrowing facility under the Bank Term Funding Program. This program allows for the Company to borrow with qualifying collateral, which includes the majority of its investment securities, except the non - Agency collateralized mortgage obligations and those allowable investments pledged with FHLB, valued at par. Advances under the program may have a term of up to one year with the interest rate fixed at the time the advance is taken and there is no prepayment penalty. The Company has pledged as collateral certain allowable investments, and based on this collateral, the Company has unused borrowing capacity of $65,000 at December 31, 2023. The Company had no advances outstanding under this program. The program expired on March 11, 2024. Refer to Note 3—Debt Securities for further information on securities pledged.

Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Numerator:
Net income (loss)	$ 7,413	$ (14,194)	$ 23,390
Denominator:
Weighted average common shares outstanding, basic	50,630,928	50,346,198	50,049,902
Weighted average effect of potentially dilutive common shares:
Weighted average common shares outstanding, diluted	50,778,559	50,346,198	50,139,310
Income (loss) per share:
Basic (in dollars per shares)	$ 0.15	$ (0.28)	$ 0.47
Diluted (in dollars per shares)	$ 0.15	$ (0.28)	$ 0.47
Common Stock
Income (loss) per share:
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive	709,442	722,203	147,964
Common Stock \| Employee Stock Option
Weighted average effect of potentially dilutive common shares:
Incremental shares from share-based compensation	89,910		55,060
Income (loss) per share:
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive	44,578	349,808	69,546
Common Stock \| Restricted stock
Weighted average effect of potentially dilutive common shares:
Incremental shares from share-based compensation	57,721		34,348
Income (loss) per share:
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive	664,864	372,395	78,418

Mortgage Servicing Rights, net - Principle Balance by Category (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Mortgage Servicing Rights, net
Total	$ 169,749	$ 191,260
Custodial escrow balances	620	380
FNMA
Mortgage Servicing Rights, net
Total	105,689	113,704
FHLB
Mortgage Servicing Rights, net
Total	31,016	34,282
Private investors
Mortgage Servicing Rights, net
Total	$ 33,044	$ 43,274

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss)	$ 7,413	$ (14,194)	$ 23,390

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Income Taxes - Capital loss carryforward and unrecognized tax benefits (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Capital loss carryforward and unrecognized tax benefits
Deferred tax asset, operating loss carryforwards	$ 1,128	$ 205
Unrecognized tax benefits	0
Valuation allowance	158	$ 120
Domestic country
Capital loss carryforward and unrecognized tax benefits
Net operating loss carryforward	2,126
State and local jurisdiction
Capital loss carryforward and unrecognized tax benefits
Net operating loss carryforward	6,114
Capital loss carryforward
Capital loss carryforward and unrecognized tax benefits
Capital loss carryforward	$ 608

Fair Value

12 Months Ended

Dec. 31, 2023

Fair Value

Fair Value

Note 16—Fair Value

Financial instruments include assets carried at fair value, as well as certain assets and liabilities carried at cost or amortized cost but disclosed at fair value in these consolidated financial statements. Fair value is defined as the exit price, the price that would be received for an asset or paid to transfer a liability in the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following methods and significant assumptions are used to estimate fair value:

Investment Securities

The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar investment securities (Level 2). For investment securities where quoted prices or market prices of similar investment securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The fair value of the collateralized debt obligations, which are categorized as Level 3, is obtained from third-party pricing information. It is determined by calculating discounted cash flows that include spreads that adjust for credit risk and illiquidity. The Company also performs an internal analysis that considers the structure and term of the collateralized debt obligations and the financial condition of the underlying issuers to corroborate the information used from the independent third party.

Loans Held for Sale

Loans held for sale are carried at the lower of amortized cost or fair value. Loans held for sale may be carried at fair value on a nonrecurring basis when fair value is less than cost. The fair value is based on outstanding commitments from investors or quoted prices for loans with similar characteristics (Level 2).

Mortgage Servicing Rights

Fair value of mortgage servicing rights is initially determined at the individual grouping level based on an internal valuation model that calculates the present value of estimated future net servicing income. On a quarterly basis, mortgage servicing rights are evaluated for impairment based upon third-party valuations obtained. As disclosed in Note 7—Mortgage Servicing Rights, net, the valuation model utilizes interest rate, prepayment speed and default rate assumptions that market participants would use in estimating future net servicing income (Level 3).

Assets Measured at Fair Value on a Recurring Basis

The table below presents the assets measured at fair value on a recurring basis categorized by the level of inputs used in the valuation of each asset at December 31, 2023 and 2022:


			Fair Value Measurements at
			December 31, 2023
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury and Agency securities	$	248,988	$	219,582	$	29,406	$	—
Mortgage-backed securities		31,927		—		31,927		—
Collateralized mortgage obligations		138,157		—		138,157		—
Collateralized debt obligations		141		—		—		141
Equity securities		4,457		4,457		—		—


			Fair Value Measurements at
			December 31, 2022
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury and Agency securities	$	168,437	$	116,355	$	52,082	$	—
Mortgage-backed securities		36,733		—		36,733		—
Collateralized mortgage obligations		138,241		—		138,241		—
Collateralized debt obligations		147		—		—		147
Equity securities		4,396		4,396		—		—

The table below presents a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2023 and 2022:


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Collateralized Debt Obligations
	2023		2022
Balance of recurring Level 3 assets at beginning of year	$	147	$	203
Total gains or losses (realized/unrealized):
Included in other comprehensive income (loss)		—		(2)
Principal maturities/settlements		(6)		(54)
Balance of recurring Level 3 assets at end of year	$	141	$	147

Assets Measured at Fair Value on a Nonrecurring Basis

From time to time, the Company may be required to measure certain other assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis that were recorded in the consolidated balance sheets at December 31, 2023 and 2022, the following table provides the level of valuation assumptions used to determine each adjustment and the related carrying value:

Fair Value Measurements at December 31, 2023

Quoted Prices in

Significant

Active Markets

Other

Significant

Identical

Observable

Unobservable

Fair

Assets

Inputs

Value

(Level 1)

(Level 2)

(Level 3)

Mortgage servicing rights

576

—

576

Fair Value Measurements at December 31, 2022

Quoted Prices in

Significant

Active Markets

Other

Significant

Identical

Observable

Unobservable

Fair

Assets

Inputs

Value

(Level 1)

(Level 2)

(Level 3)

Mortgage servicing rights

391

—

391

The following tables present quantitative information about Level 3 fair value measurements for assets measured at fair value on a nonrecurring basis at December 31, 2023 and 2022:


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2023
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Mortgage servicing rights	$	576	Discounted cash flow	Discount rate	10.0% - 12.5%
					(12.2)%
				Prepayment speed	6.9% - 22.7%
					(18.5)%
				Default rate	0.1% - 0.2%
					(0.1)%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2022
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Mortgage servicing rights	$	391	Discounted cash flow	Discount rate	10.0% - 12.5%
					(12.2)%
				Prepayment speed	7.5% - 22.4%
					(19.0)%
				Default rate	0.1% - 0.2%
					(0.2)%

(1)	The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.

Fair Value of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not carried at fair value at December 31, 2023 and 2022, are as follows:


	Fair Value Measurements at December 31, 2023
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	577,967	$	577,967	$	577,967	$	—	$	—
Interest-bearing time deposits with other banks		5,226		5,226		5,226		—		—
Loans, net		1,319,568		1,313,282		—		—		1,313,282

Financial Liabilities
Time deposits		873,220		874,274		—		874,274		—
Federal Home Loan Bank borrowings		50,000		49,370		—		49,370		—


	Fair Value Measurements at December 31, 2022
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	379,798	$	379,798	$	379,798	$	—	$	—
Interest-bearing time deposits with other banks		934		934		934		—		—
Loans held for sale		7,725		7,833		—		7,833		—
Loans, net		1,613,385		1,516,771		—		—		1,516,771

Financial Liabilities
Time deposits		861,733		855,566		—		855,566		—
Federal Home Loan Bank borrowings		50,000		48,360		—		48,360		—
Subordinated Notes, net		65,271		65,355		—		65,355		—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statements of Comprehensive Income (Loss)
Unrealized gain (loss) on investment securities, arising during the period, net of tax effect	$ 1,599	$ (7,048)	$ (499)
Reclassification adjustment for gain (loss) included in net income (loss) on sale of investment securities, before tax	113	(32)
Reclassification adjustment for gain (loss) included in net gain (loss) on sale of investment securities, tax effect	$ 32	$ (9)	$ 0

Mortgage Servicing Rights, net - Activity and Related Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Mortgage servicing rights activity
Mortgage servicing rights - Beginning of year	$ 1,840	$ 3,332	$ 7,853
Additions		11	136
Disposals (Note 20)		(863)	(2,381)
Amortization	(250)	(640)	(2,276)
Mortgage servicing rights - End of year	1,590	1,840	3,332
Valuation allowance at beginning of year	46	610	2,165
Additions (recoveries)	2	(564)	(1,555)
Valuation allowance at end of year	48	46	610
Mortgage servicing rights, net	1,542	1,794	2,722
Net servicing income (loss)	$ 308	$ (20)	$ (1,208)

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest income
Interest and fees on loans	$ 86,684	$ 87,375	$ 113,822
Interest and dividends on investment securities and restricted stock	12,056	6,426	1,794
Interest on interest-bearing cash deposits	28,049	6,131	925
Total interest income	126,789	99,932	116,541
Interest expense
Interest on deposits	57,109	14,992	18,116
Interest on Federal Home Loan Bank borrowings	994	1,169	3,118
Interest on Subordinated Notes	3,727	4,969	4,127
Total interest expense	61,830	21,130	25,361
Net interest income	64,959	78,802	91,180
Provision for (recovery of) credit losses	(8,527)	(9,934)	(8,265)
Net interest income after provision for (recovery of) credit losses	73,486	88,736	99,445
Non-interest income
Service charges and fees	$ 344	$ 435	$ 509
Revenue, Product and Service [Extensible List]	sbt:ServiceChargesAndFeesMember	sbt:ServiceChargesAndFeesMember	sbt:ServiceChargesAndFeesMember
Gain (loss) on sale of investment securities	$ (113)	$ 32
Gain on sale of mortgage loans held for sale	1,623	143	$ 634
Unrealized gain (loss) on equity securities	61	(580)	(142)
Gain on sale of branch office			1,417
Net servicing income (loss)	308	(20)	(1,208)
Income earned on company-owned life insurance	327	751	1,286
Other	236	586	3,310
Total non-interest income	2,786	1,347	5,806
Non-interest expense
Salaries and employee benefits	35,937	33,507	28,220
Occupancy and equipment	8,369	8,657	9,108
Professional fees	10,076	23,908	24,709
FDIC assessments	1,058	1,146	2,029
Data processing	2,941	3,058	1,900
Net provision for (recovery of) mortgage repurchase liability	(59)	(639)	(1,234)
Provision for contingent losses		18,239
Other	7,388	9,772	7,486
Total non-interest expense	65,710	97,648	72,218
Income (loss) before income taxes	10,562	(7,565)	33,033
Income tax expense	3,149	6,629	9,643
Net income (loss)	$ 7,413	$ (14,194)	$ 23,390
Income (loss) per share, basic (in $ per share)	$ 0.15	$ (0.28)	$ 0.47
Income (loss) per share, diluted (in $ per share)	$ 0.15	$ (0.28)	$ 0.47
Weighted average common shares outstanding:
Basic (in shares)	50,630,928	50,346,198	50,049,902
Diluted (in shares)	50,778,559	50,346,198	50,139,310

Loans (Tables)

12 Months Ended

Dec. 31, 2023

Loans

Schedule of major categories of loans held for sale, investment and allowance for credit losses


	December 31,
	2023		2022
Residential real estate	$	—	$	6,181
Commercial real estate		—		1,544
Total loans held for sale	$	—	$	7,725


	December 31,
	2023		2022
Residential real estate	$	1,085,776	$	1,391,276
Commercial real estate		236,982		221,669
Construction		10,381		44,503
Commercial and industrial		15,832		1,396
Other consumer		1		5
Total loans		1,348,972		1,658,849
Less: allowance for credit losses		(29,404)		(45,464)
Loans, net	$	1,319,568	$	1,613,385

Schedule of activity in allowance for credit losses and recorded investment by portfolio segment


							Commercial
	Residential		Commercial				and
December 31, 2023	Real Estate		Real Estate		Construction		Industrial		Total
Allowance for credit losses:
Beginning balance	$	27,951	$	11,694	$	5,781	$	38	$	45,464
Adoption of ASU 2016-13		865		1,151		(3,633)		(34)		(1,651)
Adoption of ASU 2022-02		(11)		—		391		—		380
Provision for (recovery of) credit losses		(8,433)		605		(1,158)		142		(8,844)
Charge offs		(6,478)		—		—		—		(6,478)
Recoveries		428		100		5		—		533
Total ending balance	$	14,322	$	13,550	$	1,386	$	146	$	29,404


							Commercial
	Residential		Commercial				Lines of
December 31, 2022	Real Estate		Real Estate		Construction		Credit		Total
Allowance for loan losses:
Beginning balance	$	32,202	$	12,608	$	11,730	$	8	$	56,548
Provision for (recovery of) loan losses		(5,105)		3,060		(7,919)		30		(9,934)
Charge offs		(197)		(4,064)		—		—		(4,261)
Recoveries		1,051		90		1,970		—		3,111
Total ending balance	$	27,951	$	11,694	$	5,781	$	38	$	45,464


							Commercial
	Residential		Commercial				Lines of
December 31, 2021	Real Estate		Real Estate		Construction		Credit		Total
Allowance for loan losses:
Beginning balance	$	32,366	$	21,942	$	17,988	$	91	$	72,387
Provision for (recovery of) loan losses		(1,578)		(2,052)		(4,552)		(83)		(8,265)
Charge offs		—		(7,921)		(1,965)		—		(9,886)
Recoveries		1,414		639		259		—		2,312
Total ending balance	$	32,202	$	12,608	$	11,730	$	8	$	56,548


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2022	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	11	$	—	$	—	$	—	$	—	$	11
Collectively evaluated for impairment		27,940		11,694		5,781		38		—		45,453
Total ending allowance balance	$	27,951	$	11,694	$	5,781	$	38	$	—	$	45,464
Loans:
Loans individually evaluated for impairment	$	45	$	—	$	2,485	$	107	$	—	$	2,637
Loans collectively evaluated for impairment		1,391,231		221,669		42,018		1,289		5		1,656,212
Total ending loans balance	$	1,391,276	$	221,669	$	44,503	$	1,396	$	5	$	1,658,849

Schedule of information related to impaired loans by class of loans, as determined prior to adoption of ASU 2016-13


	At December 31, 2022						Year Ended December 31, 2022
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Commercial real estate:
Retail	$	227	$	—	$	—	$	—	$	—	$	—
Construction		2,485		2,485		—		6,004		166		149
Commercial lines of credit:
Private banking		107		107		—		112		6		5
Subtotal		2,819		2,592		—		6,116		172		154
With an allowance for loan losses recorded:
Residential real estate, first mortgage		79		45		11		169		4		4
Total	$	2,898	$	2,637	$	11	$	6,285	$	176	$	158


	At December 31, 2021						Year Ended December 31, 2021
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	91	$	65	$	—	$	79	$	—	$	—
Commercial real estate:
Retail		—		—		—		612		—		—
Hotels/Single-room occupancy hotels		4,459		4,441		—		14,370		—		—
Office		—		—		—		1,846		—		—
Other		—		—		—		68		—		—
Construction		15,004		14,984		—		30,239		231		218
Commercial lines of credit:
Private banking		116		116		—		1,034		8		8
Subtotal		19,670		19,606		—		48,248		239		226
With an allowance for loan losses recorded:
Residential real estate, first mortgage		273		285		159		281		3		3
Construction		—		—		—		2,541		219		200
Subtotal		273		285		159		2,822		222		203
Total	$	19,943	$	19,891	$	159	$	51,070	$	461	$	429

Schedule of recorded investment in nonaccrual and loans past due over 90 days or more and still on accrual by class of loans and aging of the recorded investment in past due loans


	December 31,
	2023						2022
			Nonaccrual		Past Due 90				Nonaccrual		Past Due 90
			With No		Days or More				With No		Days or More
	Nonaccrual		Allowance for		and Still		Nonaccrual		Allowance for		and Still
	Loans		Credit Losses		Accruing		Loans		Credit Losses		Accruing
Residential real estate:
Residential first mortgage	$	8,942	$	4,079	$	31	$	33,501	$	—	$	35
Residential second mortgage		—		—		—		189		—		—
Commercial real estate		—		—		—		—		—		—
Total	$	8,942	$	4,079	$	31	$	33,690	$	—	$	35

The following table presents an aging of the amortized cost basis of contractually past due loans at December 31, 2023:


	30 ‑ 59		60 ‑ 89		90 Days
	Days Past		Days Past		or More Past		Total		Current
December 31, 2023	Due		Due		Due		Past Due		Loans		Total
Residential real estate	$	16,634	$	2,305	$	8,973	$	27,912	$	1,057,864	$	1,085,776
Commercial real estate		—		—		—		—		236,982		236,982
Construction		—		—		—		—		10,381		10,381
Commercial and industrial		—		—		—		—		15,832		15,832
Other consumer		—		—		—		—		1		1
Total	$	16,634	$	2,305	$	8,973	$	27,912	$	1,321,060	$	1,348,972

The following table presents the aging of the recorded investment in past due loans, presented in accordance with ASC 310, at December 31, 2022, by class of loans:


	30 ‑ 59		60 ‑ 89		90 Days
	Days		Days		or More		Total		Current
December 31, 2022	Past Due		Past Due		Past Due		Past Due		Loans		Total
Residential real estate:
Residential first mortgage	$	17,881	$	5,337	$	33,536	$	56,754	$	1,324,545	$	1,381,299
Residential second mortgage		99		—		189		288		9,689		9,977
Commercial real estate:
Retail		—		—		—		—		28,971		28,971
Multifamily		—		—		—		—		81,444		81,444
Office		—		—		—		—		39,610		39,610
Hotels/Single-room occupancy hotels		—		—		—		—		5,208		5,208
Industrial		—		—		—		—		30,242		30,242
Other		—		—		—		—		36,194		36,194
Construction		—		—		—		—		44,503		44,503
Commercial lines of credit:
Private banking		—		—		—		—		107		107
C&I lending		—		—		—		—		1,289		1,289
Other consumer		—		—		—		—		5		5
Total	$	17,980	$	5,337	$	33,725	$	57,042	$	1,601,807	$	1,658,849

Schedule of risk rating of loans by class of loans


													Revolving		Revolving
													Loans		Loans
	Term Loans Amortized Cost Basis by Origination Year												Amortized		Converted
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Costs Basis		to Term		Total
Residential lending
Residential mortgage loans:
Payment performance:
Accrual	$	764	$	72,840	$	132,567	$	99,676	$	202,793	$	560,185	$	7,729	$	280	$	1,076,834
Nonaccrual		—		—		—		—		1,739		7,203		—		—		8,942
Total residential mortgage loans	$	764	$	72,840	$	132,567	$	99,676	$	204,532	$	567,388	$	7,729	$	280	$	1,085,776
Residential mortgage loans:
Current period gross write offs	$	—	$	—	$	—	$	—	$	1,858	$	4,601	$	19	$	—	$	6,478

The amortized cost basis by year of origination and credit quality indicator of the Company’s commercial loans based on the most recent analysis performed was as follows:


													Revolving		Revolving
													Loans		Loans
	Term Loans Amortized Cost Basis by Origination Year												Amortized		Converted
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Costs Basis		to Term		Total
Commercial lending
Real estate – construction:
Risk rating
Pass	$	14	$	—	$	—	$	1,591	$	—	$	—	$	—	$	—	$	1,605
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		8,776		—		—		—		8,776
Total real estate - construction	$	14	$	—	$	—	$	1,591	$	8,776	$	—	$	—	$	—	$	10,381
Real estate – construction:
Current period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial:
Risk rating
Pass	$	14,461	$	1,071	$	—	$	—	$	—	$	97	$	130	$	73	$	15,832
Total commercial and industrial	$	14,461	$	1,071	$	—	$	—	$	—	$	97	$	130	$	—	$	15,832
Commercial and industrial:
Current period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate – commercial real estate:
Risk rating
Pass	$	28,975	$	79,013	$	33,694	$	35,148	$	6,938	$	13,020	$	—	$	—	$	196,788
Special mention		948		3,574		1,407		2,724		8,610		4,253		—		—		21,516
Substandard or lower		—		—		11,778		—		2,805		4,095		—		—		18,678
Total real estate – commercial real estate	$	29,923	$	82,587	$	46,879	$	37,872	$	18,353	$	21,368	$	—	$	—	$	236,982
Real estate – commercial real estate:
Current period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


			Special
December 31, 2022	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	1,347,763	$	—	$	33,536	$	—	$	1,381,299
Residential second mortgage		9,788		—		189		—		9,977
Commercial real estate:
Retail		28,971		—		—		—		28,971
Multifamily		67,361		14,083		—		—		81,444
Office		39,610		—		—		—		39,610
Hotels/Single-room occupancy hotels		—		3,669		1,539		—		5,208
Industrial		30,242		—		—		—		30,242
Other		21,036		15,158		—		—		36,194
Construction		31,369		4,650		8,484		—		44,503
Commercial lines of credit:
Private banking		107		—		—		—		107
C&I lending		1,289		—		—		—		1,289
Other consumer		5		—		—		—		5
Total	$	1,577,541	$	37,560	$	43,748	$	—	$	1,658,849

Stock-based Compensation

12 Months Ended

Dec. 31, 2023

Stock-based Compensation

Stock-based Compensation

Note 12—Stock-based Compensation

The board of directors established the 2020 Omnibus Equity Incentive Plan (the “2020 Plan”), which was approved by the shareholders in December 2020. The 2020 Plan provides for the grant of up to 3,979,661 shares of common stock for stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares for issuance to employees, consultants and the board of directors of the Company, of which 2,299,858 shares were available for future grants. The stock-based awards are issued at no less than the market price on the date the awards are granted.

Previously, the board of directors had established a 2017 Omnibus Equity Incentive Plan (the “2017 Plan”) which was approved by the shareholders. The 2017 Plan initially provided for the grant of up to 4,237,100 shares of common stock for stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards for issuance to employees, consultants and the board of directors of the Company. The stock-based awards were issued at no less than the market price on the date the awards were granted. Due to the adoption of the 2020 Plan, no further grants will be issued under the 2017 Plan.

Stock Options

Stock option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant. Beginning with grants in 2020, stock option awards vest ratably over three years (one-third per year) after the date of grant, while stock option awards granted prior to 2020 generally vest in installments of 50% in each of the third and fourth year after the date of grant. All stock option awards have a maximum term of ten years.

A summary of the Company’s stock option activity as of and for the year ended December 31, 2023 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Shares	Price		Term	Value
				(Years)
Outstanding at January 1, 2023	349,545	$	5.19	7.17	$	627
Granted	—
Exercised	—
Forfeited/expired	(9,150)	$	13.73
Outstanding at December 31, 2023	340,395	$	4.96	6.23	$	531
Exercisable at December 31, 2023	340,395	$	4.96	6.23	$	531

The Company recorded stock-based compensation expense associated with stock options of $1, $(6) and $173 for the year ended December 31, 2023, 2022 and 2021, respectively.

Restricted Stock Awards

Restricted stock awards are issued to independent directors and certain key employees. The restricted stock awards generally vest one-third per year over three years after the date of grant, unless the Compensation Committee determines to establish a different vesting schedule for specific grants. In particular, during the year ended December 31, 2023, the Company granted its chief executive officer a restricted stock award that vests in one-third increments every six months over an eighteen-month period and granted other executive officers restricted stock awards that vest in one-third increments on the third, fourth and fifth anniversary of the date of grant. The value of a restricted stock award is based on the market value of the Company’s common stock at the date of grant reduced by the present value of dividends per share expected to be paid during the period the shares are not vested. Upon a change in control, as defined in the 2017 Plan and 2020 Plan, the outstanding restricted stock awards will immediately vest.

During the year ended December 31, 2023, the board of directors approved the issuance of 1,195,838 shares of restricted stock, of which 60,000 were awarded to independent directors with a weighted average grant-date fair value of $6.09 and 1,135,838 shares were awarded to key employees with a weighted average grant-date fair value of $5.10. During the year ended December 31, 2022, the board of directors approved the issuance of 231,842 shares of restricted stock, of which 45,000 shares were awarded to independent directors with a weighted average grant-date fair value of $5.75 and 186,842 shares were awarded to key employees with a weighted average grant-date fair value of $6.77. During the year ended December 31, 2021, the board of directors approved the issuance of 252,123 shares of restricted stock, of which 45,000 shares were awarded to independent directors with a weighted average grant-date fair value of $4.71 and 207,123 shares were awarded to key employees with a weighted average grant-date fair value of $5.05.

During the year ended December 31, 2023, 2022 and 2021, the Company withheld 42,753 shares, 32,929 shares and 8,536 shares, respectively, of common stock representing a portion of the restricted stock awards that vested during the period in order to satisfy certain related employee tax withholding liabilities of $245, $216 and $46, respectively, associated with vesting. These withheld shares are treated the same as repurchased shares for accounting purposes.

A summary of the restricted stock awards activity as of and for the year ended December 31, 2023 is as follows:


		Weighted Average
	Number	Grant Date
	of Shares	Fair Value
Nonvested at January 1, 2023	390,125	$	6.17
Granted	1,195,838		5.15
Vested	(157,870)		6.27
Forfeited	(63,523)		6.02
Nonvested at December 31, 2023	1,364,570	$	5.27

The fair value of the award is recorded as compensation expense on a straight-line basis over the vesting period. The Company recorded stock-based compensation expense associated with restricted stock awards of $2,096, $906 and $453 for the year ended December 31, 2023, 2022 and 2021, respectively. At December 31, 2023, there was $5,251 of total unrecognized compensation cost related to the nonvested stock granted which is expected to be recognized over a weighted-average period of 2.40 years. The total fair value of shares vested during the year ended December 31, 2023 and 2022 was $911 and $673, respectively.

Mortgage Servicing Rights, net - Valuation techniques (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Mortgage Servicing Rights, net
Fair value of mortgage servicing rights	$ 1,857	$ 2,154
Minimum
Mortgage Servicing Rights, net
Discount rate range	10.00%	10.00%
Maximum
Mortgage Servicing Rights, net
Discount rate range	12.50%	12.50%
Weighted Average
Mortgage Servicing Rights, net
Prepayment speed range	9.80%	10.20%
Weighted average life of the mortgage servicing right	77 months	77 months
Weighted average default rate	0.20%	0.20%

Nature of Operations

12 Months Ended

Dec. 31, 2023

Nature of Operations

Nature of Operations

Note 1—Nature of Operations

Sterling Bancorp, Inc. (unless stated otherwise or the context otherwise requires, together with its subsidiaries, the “Company”) is a unitary thrift holding company that was incorporated in 1989 and the parent company of its wholly owned subsidiary, Sterling Bank and Trust, F.S.B. (the “Bank”), which was formed in 1984. The Company’s business is conducted through the Bank. The Bank originates commercial real estate loans and commercial and industrial loans, and provides deposit products, consisting primarily of checking, savings and term certificate accounts. The Bank also engages in mortgage banking activities and, as such, acquires, sells and services residential mortgage loans. The Bank operates through a network of 27 branches of which 25 branches are located in the San Francisco and Los Angeles, California metropolitan areas with the remaining branches located in New York, New York and Southfield, Michigan. In February 2024, the Company closed one of its branches in San Francisco and consolidated the operations into a nearby branch office. The Company is headquartered in Southfield, Michigan.

Historically, the Company’s largest asset class has been residential mortgage loans. In 2023, the Bank discontinued originating residential loans. In May 2022, the Company outsourced the residential loan origination function to a third-party residential lending service provider. In November 2022, the service provider notified the Company of its intention to cease conducting business. Residential loan applications were processed through February 2023. At that time, the Company explored possible other service providers but decided to suspend the origination of residential lending. The Company is currently performing an evaluation of its alternatives for new banking products and services.

The Company is subject to regulation, examination and supervision by the Board of Governors of the Federal Reserve System (the “FRB” or “Federal Reserve”). The Bank is a federally chartered stock savings bank that has elected to operate as a covered savings association, effective August 9, 2023. As a covered savings association, the Bank will generally function as a commercial bank without the constraints applicable to a thrift institution. Prior to the election becoming effective, the Bank was subject to the Qualified Thrift Lender (“QTL”) test. Under the QTL test, a savings institution is required to maintain at least 65% of its portfolio assets in certain qualified thrift investments (primarily residential mortgages and related investments, including certain mortgage-backed and related securities) in at least nine months out of each 12-month period. The Bank is subject to regulation, supervision and examination by the Office of the Comptroller of the Currency (“OCC”) of the U.S. Department of Treasury and the Federal Deposit Insurance Corporation (“FDIC”) and is a member of the FRB system and Federal Home Loan Bank (“FHLB”) system.

In July 2021, the Company completed the sale of the Bellevue, Washington branch office to First Federal Savings & Loan Association of Port Angeles (“First Federal”), a Washington state-chartered bank. The sale included the transfer of customer deposit accounts of $65,437 located at the branch, as well as the transfer of all branch premises and equipment. The transaction resulted in a net cash payment to First Federal of $63,545. The Company recorded a gain on the sale of $1,417 during the year ended December 31, 2021.

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Employee Benefit Plans
Income tax expense		$ 3,614
Additional taxes		1,314
Contribution plan cost	$ 1,259	1,463	$ 935
Annual matching contribution
Employee Benefit Plans
Employer matching contribution, as a percent of employee's contribution	100.00%
Percentage of employee's eligible compensation that will be match by employer	6.00%
Split-dollar life program
Employee Benefit Plans
Benefit plan benefit obligation		4,109
Split-dollar life program \| Cash surrender value
Employee Benefit Plans
Cash surrender value		24,877
Increase in the cash surrender value		13,142
Executive Incentive Retirement Plan Agreement
Employee Benefit Plans
Pension and other postretirement benefits cost		(405)	$ (470)
Liability defined benefit plan	$ 359	$ 359

Loans - Credit risk profiles prior to adoption (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Loans
Total	$ 1,658,849
Pass
Loans
Total	1,577,541
Special Mention
Loans
Total	37,560
Substandard
Loans
Total	43,748
Residential real estate
Loans
Total	1,391,276
Residential real estate \| Real estate loan, first mortgage
Loans
Total	1,381,299
Residential real estate \| Real estate loan, first mortgage \| Pass
Loans
Total	1,347,763
Residential real estate \| Real estate loan, first mortgage \| Substandard
Loans
Total	33,536
Residential real estate \| Real estate loan, second mortgage
Loans
Total	9,977
Residential real estate \| Real estate loan, second mortgage \| Pass
Loans
Total	9,788
Residential real estate \| Real estate loan, second mortgage \| Substandard
Loans
Total	189
Commercial real estate
Loans
Total	221,669
Commercial real estate \| Retail
Loans
Total	28,971
Commercial real estate \| Retail \| Pass
Loans
Total	28,971
Commercial real estate \| Multifamily
Loans
Total	81,444
Commercial real estate \| Multifamily \| Pass
Loans
Total	67,361
Commercial real estate \| Multifamily \| Special Mention
Loans
Total	14,083
Commercial real estate \| Office
Loans
Total	39,610
Commercial real estate \| Office \| Pass
Loans
Total	39,610
Commercial real estate \| Hotels/Single-room occupancy hotels
Loans
Total	5,208
Commercial real estate \| Hotels/Single-room occupancy hotels \| Special Mention
Loans
Total	3,669
Commercial real estate \| Hotels/Single-room occupancy hotels \| Substandard
Loans
Total	1,539
Commercial real estate \| Industrial
Loans
Total	30,242
Commercial real estate \| Industrial \| Pass
Loans
Total	30,242
Commercial real estate \| Other
Loans
Total	36,194
Commercial real estate \| Other \| Pass
Loans
Total	21,036
Commercial real estate \| Other \| Special Mention
Loans
Total	15,158
Construction loans
Loans
Total	44,503
Construction loans \| Pass
Loans
Total	31,369
Construction loans \| Special Mention
Loans
Total	4,650
Construction loans \| Substandard
Loans
Total	8,484
Commercial Lines of Credit
Loans
Total	1,396
Commercial Lines of Credit \| Private banking
Loans
Total	107
Commercial Lines of Credit \| Private banking \| Pass
Loans
Total	107
Commercial Lines of Credit \| C&I lending
Loans
Total	1,289
Commercial Lines of Credit \| C&I lending \| Pass
Loans
Total	1,289
Other consumer
Loans
Total	5
Other consumer \| Pass
Loans
Total	$ 5

Subordinated Notes, net

12 Months Ended

Dec. 31, 2023

Subordinated Notes, net

Subordinated Notes, net

Note 10—Subordinated Notes, net

The 7% Fixed to Floating Subordinated Notes, due April 15, 2026 (the “Subordinated Notes”) were as follows:


	December 31,
	2023		2022
Subordinated Notes	$	—	$	65,000
Unamortized note premium		—		271
Total	$	—	$	65,271

On July 15, 2023, the Company redeemed all of its outstanding Subordinated Notes, at a redemption price equal to 100% of the outstanding principal amount plus accrued interest, for a total cash payment of $66,821. The Company recorded a gain on the extinguishment of the Subordinated Notes of $234 which equaled the remaining unamortized note premium. The gain on the extinguishment of the Subordinated Notes was recorded in other income within non-interest income in the consolidated statements of operations for the year ended December 31, 2023.

The Subordinated Notes accrued interest at a variable interest rate based on the three-month London Interbank Offered Rate (“LIBOR”) plus a margin of 5.82%, payable quarterly in arrears. The interest rate was 9.90% at December 31, 2022. Note premium costs were amortized over the contractual term of the Subordinated Notes into interest expense using the effective interest method. Interest expense on these Subordinated Notes was $3,727, $4,969 and $4,127 for the year ended December 31, 2023, 2022 and 2021, respectively.

The Subordinated Notes were unsecured obligations and were subordinated in right of payment to all existing and future indebtedness, deposits and other liabilities of the Company's current and future subsidiaries, including the Bank's deposits as well as the Company's subsidiaries' liabilities to general creditors and liabilities arising during the ordinary course of business.

The Company currently may not issue new debt without the prior approval of the FRB.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2023

Employee Benefit Plans

Employee Benefit Plans

Note 15—Employee Benefit Plans

Defined Contribution Retirement Plan

The Company maintains a defined contribution plan which provides for an annual matching contribution in an amount equal to 100% of the employee’s contribution up to 6% of the employee’s eligible compensation and also provides that such matching contribution may be made in shares of the Company’s common stock. In this case, an employee’s 401(k) plan account would hold interests in a unitized stock fund instead of a direct interest in the shares of common stock. The employee is not required to be employed by the Company on the date the matching contribution is made in order to receive it. The Company also has the discretion to make additional contributions.

The Company’s plan expense was $1,259, $1,463 and $935 for the year ended December 31, 2023, 2022 and 2021, respectively.

Executive Incentive Retirement Plan Agreement

The Bank entered into individual executive incentive retirement plan agreements with certain employees. These agreements provided for payments, if payable in accordance with their respective terms and in accordance with applicable law, upon a separation from service or a change of control (as defined in such agreements) if the individual has met specified vesting requirements. Each of these agreements also provided for death benefits in the event of death in active service to the Bank. During the year ended December 31, 2022 and 2021, there were forfeitures and payments to individuals due to their separation from service.

A liability remains for one individual. The aggregate liability accrued for potential payment under this agreement was $359 at December 31, 2023 and 2022. The aggregate expense, net of forfeitures, for such agreements was $(405) and $(470) for the year ended December 31, 2022 and 2021, respectively.

Split-Dollar Life Insurance Agreement and Company-Owned Life Insurance

The Bank entered into a split-dollar life insurance agreement with respect to its controlling shareholder and former chief executive officer of the Bank. Pursuant to the agreement with the Bank, a portion of the death benefits arising from life insurance policies owned by the Company would be paid to beneficiaries designated by the controlling shareholder. The Bank cancelled the split-dollar life insurance agreement in 2022 and surrendered the related split-dollar life insurance policy as well as certain company-owned life insurance policies related to former executives with an aggregate cash surrender value of $24,877. This resulted in a payout in such amount to the Company. Upon the surrender of the policies, the remaining accrued liability of $4,109 was reversed and included as a reduction in salaries and employee benefits expense in the consolidated statement of operations for the year ended December 31, 2022.

The increase in the cash surrender value of $13,142 during the duration of ownership of these policies was previously considered tax-exempt income and became taxable income upon the surrender of the policies. The Company recorded income taxes of $3,614 and additional tax of $1,314, which is included in other expense within non-interest expense, upon the surrender of the policies during the year ended December 31, 2022.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (q)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (l)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (o)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (p)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies

Summary of the activity in the liability for unfunded commitments


	Residential		Commercial				Commercial		Other
	Real Estate		Real Estate		Construction		and Industrial		Consumer		Total
Balance, beginning of period	$	—	$	—	$	—	$	—	$	—	$	—
Adoption of ASU 2016-13		53		125		398		3		—		579
Increase (decrease) in provision for (recovery of) credit losses		(52)		(1)		365		5		—		317
Balance, end of period	$	1	$	124	$	763	$	8	$	—	$	896

Summary of total amount of unfunded commitments to extend credit and standby letters of credit outstanding

Summary of activity in the mortgage repurchase liability


	Year Ended December 31,
	2023		2022		2021
Balance, beginning of period	$	809	$	2,954	$	9,699
Net provision (recovery)		(59)		(639)		(1,234)
Loss on loan repurchases		—		(1,506)		(5,511)
Balance, end of period	$	750	$	809	$	2,954

Loans - Nonaccrual loans cost basis, Aging analysis of past due loans, foreclosure (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Feb. 28, 2022
Loans
Nonaccrual loans		$ 8,942	$ 33,690
Nonaccrual With No Allowance for Credit Losses		4,079
Past Due 90 Days or More and Still Accruing		31	35
Total			1,658,849
Total		1,348,972
Nonaccrual loans held for sale		8,942
Transfer of loans to loans held for sale		34,581		$ 53,628
Gain on sale of mortgage loans held for sale		1,623	143	634
Advantage Loan Program
Loans
Loans repurchased during the period			65,621
Not Past Due
Loans
Total			1,601,807
Total		1,321,060
Past Due
Loans
Total			57,042
Total		27,912
30 - 59 Days Past Due
Loans
Total			17,980
Total		16,634
60 - 89 Days Past Due
Loans
Total			5,337
Total		2,305
90 Days or More Past Due
Loans
Total			33,725
Total		8,973
Residential real estate
Loans
Total			1,391,276
Total		1,085,776
Transfer of loans to loans held for sale	$ 41,059
Nonaccrual residential real estate loan charge off		4,231
Payment of nonaccrual residential real estate loan		4,162
Loans returned to accrual status		5,791
Loans added to nonaccrual status		14,093
Total interest income on nonaccrual loan		401	2,028	$ 2,936
Residential real estate \| Not Past Due
Loans
Total		1,057,864
Residential real estate \| Past Due
Loans
Total		27,912
Residential real estate \| 30 - 59 Days Past Due
Loans
Total		16,634
Residential real estate \| 60 - 89 Days Past Due
Loans
Total		2,305
Residential real estate \| 90 Days or More Past Due
Loans
Total		8,973
Residential real estate \| Real estate loan, first mortgage
Loans
Nonaccrual loans		8,942	33,501
Nonaccrual With No Allowance for Credit Losses		4,079
Past Due 90 Days or More and Still Accruing		31	35
Total			1,381,299
Residential real estate \| Real estate loan, first mortgage \| Not Past Due
Loans
Total			1,324,545
Residential real estate \| Real estate loan, first mortgage \| Past Due
Loans
Total			56,754
Residential real estate \| Real estate loan, first mortgage \| 30 - 59 Days Past Due
Loans
Total			17,881
Residential real estate \| Real estate loan, first mortgage \| 60 - 89 Days Past Due
Loans
Total			5,337
Residential real estate \| Real estate loan, first mortgage \| 90 Days or More Past Due
Loans
Total			33,536
Residential real estate \| Real estate loan, second mortgage
Loans
Nonaccrual loans			189
Total			9,977
Residential real estate \| Real estate loan, second mortgage \| Not Past Due
Loans
Total			9,689
Residential real estate \| Real estate loan, second mortgage \| Past Due
Loans
Total			288
Residential real estate \| Real estate loan, second mortgage \| 30 - 59 Days Past Due
Loans
Total			99
Residential real estate \| Real estate loan, second mortgage \| 90 Days or More Past Due
Loans
Total			189
Nonaccrual residential real estate loans
Loans
Nonaccrual loans held for sale			1,942
Transfer of loans to loans held for sale	$ 28,637
Commercial real estate
Loans
Total			221,669
Total		236,982			$ 49,455
Commercial real estate \| Not Past Due
Loans
Total		236,982
Commercial real estate \| Retail
Loans
Total			28,971
Commercial real estate \| Retail \| Not Past Due
Loans
Total			28,971
Commercial real estate \| Multifamily
Loans
Total			81,444
Commercial real estate \| Multifamily \| Not Past Due
Loans
Total			81,444
Commercial real estate \| Office
Loans
Total			39,610
Commercial real estate \| Office \| Not Past Due
Loans
Total			39,610
Commercial real estate \| Hotels/Single-room occupancy hotels
Loans
Total			5,208
Commercial real estate \| Hotels/Single-room occupancy hotels \| Not Past Due
Loans
Total			5,208
Commercial real estate \| Industrial
Loans
Total			30,242
Commercial real estate \| Industrial \| Not Past Due
Loans
Total			30,242
Commercial real estate \| Other
Loans
Total			36,194
Commercial real estate \| Other \| Not Past Due
Loans
Total			36,194
Construction loans
Loans
Total			44,503
Total		10,381
Construction loans \| Not Past Due
Loans
Total			44,503
Total		10,381
Commercial and industrial
Loans
Total			1,396
Total		15,832
Commercial and industrial \| Not Past Due
Loans
Total		15,832
Commercial Lines of Credit
Loans
Total			1,396
Commercial Lines of Credit \| Private banking
Loans
Total			107
Commercial Lines of Credit \| Private banking \| Not Past Due
Loans
Total			107
Commercial Lines of Credit \| C&I lending
Loans
Total			1,289
Commercial Lines of Credit \| C&I lending \| Not Past Due
Loans
Total			1,289
Other consumer
Loans
Total			5
Total		1
Other consumer \| Not Past Due
Loans
Total			$ 5
Total		$ 1

Mortgage Servicing Rights, net

12 Months Ended

Dec. 31, 2023

Mortgage Servicing Rights, net

Mortgage Servicing Rights, net

Note 7—Mortgage Servicing Rights, net

The Company records servicing assets from the sale of residential real estate mortgage loans to the secondary market for which servicing has been retained. Residential real estate mortgage loans serviced for others are not included in the consolidated balance sheets. The principal balance of these loans at December 31, 2023 and 2022 are as follows:


	December 31,
	2023		2022
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	105,689	$	113,704
FHLB		31,016		34,282
Private investors		33,044		43,274
Total	$	169,749	$	191,260

Custodial escrow balances maintained with these serviced loans were $620 and $380 at December 31, 2023 and 2022, respectively. These balances are included in noninterest-bearing deposits in the consolidated balance sheets.

Activity for mortgage servicing rights and the related valuation allowance are as follows:


	Year Ended December 31,
	2023		2022		2021
Mortgage servicing rights:
Beginning of year	$	1,840	$	3,332	$	7,853
Additions		—		11		136
Disposals (Note 20)		—		(863)		(2,381)
Amortization		(250)		(640)		(2,276)
End of year		1,590		1,840		3,332
Valuation allowance:
Beginning of year		46		610		2,165
Additions (recoveries)		2		(564)		(1,555)
End of year		48		46		610
Mortgage servicing rights, net	$	1,542	$	1,794	$	2,722

Servicing income (loss), net of amortization of servicing rights and changes in the valuation allowance, was $308, $(20) and $(1,208) for the year ended December 31, 2023, 2022 and 2021, respectively.

The fair value of mortgage servicing rights was $1,857 and $2,154 at December 31, 2023 and 2022, respectively. The fair value of mortgage servicing rights is highly sensitive to changes in underlying assumptions. Changes in prepayment speed assumptions have the most significant impact on the estimate of the fair value of mortgage servicing rights. The fair value at December 31, 2023 was determined using discount rates ranging from 10.0% to 12.5%, prepayment speeds with a weighted average of 9.8% (depending on the stratification of the specific right), a weighted average life of the mortgage servicing right of 77 months and a weighted average default rate of 0.2%. The fair value at December 31, 2022 was determined using discount rates ranging from 10.0% to 12.5%, prepayment speeds with a weighted average of 10.2% (depending on the stratification of the specific right), a weighted average life of the mortgage servicing right of 77 months and a weighted average default rate of 0.2%.

Impairment is determined by stratifying the mortgage servicing rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. At December 31, 2023 and 2022, the carrying amount of certain individual groupings exceeded their fair value, resulting in write-downs to fair value. Refer to Note 16—Fair Value.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)(7)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-4

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)(4)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)(5)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//860/tableOfContent

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (cc)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)(5)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4D
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4D

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-7

Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-4

+ Details

Shareholders' Equity (Details) $ / shares in Units, $ in Thousands	1 Months Ended			12 Months Ended
	Apr. 30, 2023 USD ($) $ / shares shares	Apr. 30, 2022 USD ($) $ / shares shares	May 31, 2021 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) Vote $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) shares
Shareholders' Equity
Preferred stock, shares authorized				10,000,000	10,000,000
Common stock, shares authorized				500,000,000	500,000,000
Common stock, par value (in dollars per share) \| $ / shares				$ 0	$ 0
Preferred stock, shares issued				0	0
Preferred stock, shares outstanding				0	0
Issuance of shares of common stock to defined contribution retirement plan (Note 11) \| $				$ 1,028	$ 1,138
Proceeds from issuance of shares of common stock \| $						$ 1,350
Common Stock
Shareholders' Equity
Common stock, shares authorized				500,000,000
Number of votes \| Vote				1
Issuance of shares of common stock to defined contribution retirement plan (in shares) (Note 11)				184,928	160,978
Issuance of shares of common stock to defined contribution retirement plan (Note 11) \| $				$ 1,028	$ 1,138
Number of shares of stock issued and sold						300,000
Common stock authorized repurchase amount remaining \| $				19,568
Common Stock \| Chief Executive Officer
Shareholders' Equity
Number of shares of stock issued and sold			300,000
Proceeds from issuance of shares of common stock \| $			$ 1,350
Offering price (in dollars per share) \| $ / shares			$ 4.50
Common Stock \| Maximum
Shareholders' Equity
Stock repurchase program authorized amount \| $				$ 50,000
Common Stock \| Annual matching contribution
Shareholders' Equity
Issuance of shares of common stock to defined contribution retirement plan (in shares) (Note 11)	184,928	160,978
Issuance of shares of common stock to defined contribution retirement plan (Note 11) \| $	$ 1,028	$ 1,138
Issue price per share \| $ / shares	$ 5.56	$ 7.07

Loans - Loans Held for Sale (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Mar. 31, 2023	Feb. 28, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Loans
Total loans held for sale				$ 7,725
Nonaccrual loans held for sale			$ 8,942
Transfers of residential and commercial real estate loans to loans held for sale			34,581		$ 53,628
Transfers of residential real estate loans from loans held for sale			3,906
carrying value			36,210
Proceeds from sale of loans held for sale			37,930
Gain on sale of loans held for sale			$ 1,623	143	634
Residential real estate
Loans
Total loans held for sale				6,181
Transfers of residential and commercial real estate loans to loans held for sale	$ 41,059
Loans receivable charged off	6,478
Transfers of residential real estate loans from loans held for sale	3,906
Nonaccrual residential real estate loans
Loans
Nonaccrual loans held for sale				1,942
Transfers of residential and commercial real estate loans to loans held for sale	28,637
Transfers of residential real estate loans from loans held for sale	$ 3,906
Commercial real estate
Loans
Total loans held for sale				$ 1,544
Loans receivable charged off					7,921
Proceeds from sale of loans held for sale		$ 49,610
Transfer of Portfolio Loans and Leases to Held-for-sale Carrying Value					$ 61,549

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deposits
Interest-bearing time deposits	$ 873,220	$ 861,733
Time deposits that meet or exceed the FDIC insurance limit of $250	255,222	$ 243,861
Brokered time deposits	$ 0

Regulatory Capital Requirements (Details) $ in Thousands	12 Months Ended
Regulatory Capital Requirements (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Regulatory Capital Requirements
Minimum required Tier 1 leverage ratio for CBRL framework	9.00%
Maximum allowed total consolidated assets for CBRL framework	$ 10,000,000
Leverage ratio percentage	8.00%
Tier 1 (core) capital to average total assets, Amount
Actual	$ 342,368
To be Well Capitalized	$ 220,950
Tier 1 (core) capital to average total assets, Leverage Ratio
Actual	0.1395
To be Well Capitalized	0.0900
Dividend Restrictions
Minimum percentage of assets be maintained as per Qualified Thrift Lender ("QTL") test	65.00%
Risk-weighting 100% Scenario
Total adjusted capital to risk-weighted assets, Amount
Actual		$ 390,591
For Capital Adequacy Purposes		$ 121,888
Total adjusted capital to risk-weighted assets, Ratio
Actual		0.2564
For Capital Adequacy Purposes		0.0800
Tier 1 (core) capital to risk-weighted assets, Amount
Actual		$ 332,068
For Capital Adequacy Purposes		$ 91,416
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual		0.2179
For Capital Adequacy Purposes		0.0600
Common Equity Tier 1 (CET1), Amount
Actual		$ 332,068
For Capital Adequacy Purposes		$ 68,562
Common Equity Tier 1 (CET1), Ratio
Actual		0.2179
For Capital Adequacy Purposes		0.0450
Tier 1 (core) capital to average total assets, Amount
Actual		$ 332,068
For Capital Adequacy Purposes		$ 98,073
Tier 1 (core) capital to average total assets, Leverage Ratio
Actual		0.1354
For Capital Adequacy Purposes		0.0400
Bank
Tier 1 (core) capital to average total assets, Amount
Actual	$ 328,362
To be Well Capitalized	$ 220,920
Tier 1 (core) capital to average total assets, Leverage Ratio
Actual	0.1338
For Capital Adequacy Purposes	0.0900
Bank \| Risk-weighting 100% Scenario
Total adjusted capital to risk-weighted assets, Amount
Actual		$ 425,159
For Capital Adequacy Purposes		$ 121,795
Total adjusted capital to risk-weighted assets, Ratio
Actual		0.2793
For Capital Adequacy Purposes		0.0800
Tier 1 (core) capital to risk-weighted assets, Amount
Actual		$ 405,803
For Capital Adequacy Purposes		$ 91,346
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual		0.2665
For Capital Adequacy Purposes		0.0600
Common Equity Tier 1 (CET1), Amount
Actual		$ 405,803
For Capital Adequacy Purposes		$ 68,510
Common Equity Tier 1 (CET1), Ratio
Actual		0.2665
For Capital Adequacy Purposes		0.0450
Tier 1 (core) capital to average total assets, Amount
Actual		$ 405,803
For Capital Adequacy Purposes		$ 98,032
Tier 1 (core) capital to average total assets, Leverage Ratio
Actual		0.1656
For Capital Adequacy Purposes		0.0400
Bank \| Risk-weighting 100% Scenario \| Advantage Loan Program
Total adjusted capital to risk-weighted assets, Amount
For Capital Adequacy Purposes		$ 121,795
To be Well Capitalized		$ 152,244
Total adjusted capital to risk-weighted assets, Ratio
To be Well Capitalized		0.1000
Tier 1 (core) capital to risk-weighted assets, Ratio
To be Well Capitalized		8.00
Common Equity Tier 1 (CET1), Amount
To be Well Capitalized		$ 98,959
Common Equity Tier 1 (CET1), Ratio
To be Well Capitalized		0.0650
Tier 1 (core) capital to average total assets, Amount
To be Well Capitalized		$ 122,540
Tier 1 (core) capital to average total assets, Leverage Ratio
To be Well Capitalized		0.0500

Leasehold Improvements and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2023

Leasehold Improvements and Equipment, net

Schedule of leasehold improvements and equipment, net


	Estimated
	Useful
	Life	December 31,
	(in years)	2023		2022
Leasehold improvements	*	$	11,658	$	11,592
Furniture and equipment	3 ‑ 7		12,270		11,959
Total			23,928		23,551
Less: accumulated depreciation and amortization			(18,498)		(17,250)
Leasehold improvements and equipment, net		$	5,430	$	6,301

* Amortized over the shorter of the lease term or estimated useful life.

Debt Securities - Aggregated by Major Security Type and Length of Time in a Continuous Unrealized Loss Position (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($)
Fair Value
Less than 12 Months, Fair value	$ 60,133	$ 175,695
12 Months or More, Fair Value	268,805	140,408
Available for sale, Continuous unrealized loss position, Fair Value	328,938	316,103
Unrealized Losses
Less than 12 Months, Unrealized Losses	(222)	(6,147)
12 Months or More, Unrealized Losses	(20,860)	(20,805)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (21,082)	(26,952)
Number of debt securities in portfolio \| security	34
Number of debt securities in an unrealized loss position \| security	30
U.S. Treasury and Agency securities
Fair Value
Less than 12 Months, Fair value	$ 49,836	100,815
12 Months or More, Fair Value	125,183	44,605
Available for sale, Continuous unrealized loss position, Fair Value	175,019	145,420
Unrealized Losses
Less than 12 Months, Unrealized Losses	(1)	(2,839)
12 Months or More, Unrealized Losses	(4,175)	(4,619)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(4,176)	(7,458)
Mortgage-backed securities
Fair Value
Less than 12 Months, Fair value		5,792
12 Months or More, Fair Value	31,927	30,941
Available for sale, Continuous unrealized loss position, Fair Value	31,927	36,733
Unrealized Losses
Less than 12 Months, Unrealized Losses		(139)
12 Months or More, Unrealized Losses	(3,830)	(4,516)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(3,830)	(4,655)
Collateralized mortgage obligations
Fair Value
Less than 12 Months, Fair value	10,297	69,088
12 Months or More, Fair Value	111,554	64,715
Available for sale, Continuous unrealized loss position, Fair Value	121,851	133,803
Unrealized Losses
Less than 12 Months, Unrealized Losses	(221)	(3,169)
12 Months or More, Unrealized Losses	(12,845)	(11,660)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(13,066)	(14,829)
Collateralized debt obligations
Fair Value
12 Months or More, Fair Value	141	147
Available for sale, Continuous unrealized loss position, Fair Value	141	147
Unrealized Losses
12 Months or More, Unrealized Losses	(10)	(10)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (10)	$ (10)

Income (Loss) Per Share

12 Months Ended

Dec. 31, 2023

Income (Loss) Per Share

Income (Loss) Per Share

Note 14—Income (Loss) Per Share


	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income (loss)	$	7,413	$	(14,194)	$	23,390

Denominator:
Weighted average common shares outstanding, basic		50,630,928		50,346,198		50,049,902
Weighted average effect of potentially dilutive common shares:
Stock options		89,910		—		55,060
Restricted stock		57,721		—		34,348
Weighted average common shares outstanding, diluted		50,778,559		50,346,198		50,139,310

Income (loss) per share:
Basic	$	0.15	$	(0.28)	$	0.47
Diluted	$	0.15	$	(0.28)	$	0.47

The weighted average effect of certain stock options and nonvested restricted stock that were excluded from the computation of weighted average diluted shares outstanding, as inclusion would be anti-dilutive, are summarized as follows:


	Year Ended December 31,
	2023	2022	2021
Stock options	44,578	349,808	69,546
Restricted stock	664,864	372,395	78,418
Total	709,442	722,203	147,964

Operating Leases - Maturity of lease liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Maturities of lease liabilities
2024	$ 4,009
2025	3,313
2026	2,490
2027	1,702
2028	1,278
Thereafter	526
Total lease payments	13,318
Less: future interest costs	(781)
Present value of lease liabilities	$ 12,537	$ 15,990

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Consolidated Balance Sheets
Debt securities available for sale - Amortized Cost	$ 440,211	$ 370,489
Allowance for credit losses	$ 29,404	$ 45,464
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	52,070,361	50,795,871
Common stock, outstanding (in shares)	52,070,361	50,795,871

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2023	Feb. 29, 2024	Jun. 30, 2023
Document and Entity Information
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	001-38290
Entity Registrant Name	Sterling Bancorp, Inc.
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	38-3163775
Entity Address, Address Line One	One Towne Square
Entity Address, Address Line Two	Suite 1900
Entity Address, City or Town	Southfield
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48076
City Area Code	248
Local Phone Number	355-2400
Title of 12(b) Security	Common Stock
Trading Symbol	SBT
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction Flag	false
Entity Shell Company	false
Entity Public Float			$ 95.3
Entity Common Stock, Shares Outstanding		52,068,213
Entity Central Index Key	0001680379
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Name	Crowe LLP
Auditor Firm ID	173
Auditor Location	Cleveland, Ohio

Deposits (Tables)

12 Months Ended

Dec. 31, 2023

Deposits

Schedule of maturities of time deposits, including brokered deposits

At December 31, 2023, the scheduled maturities of time deposits for the next five years were as follows:


2024	$	761,709
2025		102,605
2026		7,447
2027		1,303
2028		156

Fair Value - Assets Measured at Fair Value on a Nonrecurring Basis and Fair Value of Financial Instruments (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Financial Assets
Interest-bearing time deposits with other banks	$ 5,226	$ 934
Loans held for sale		7,725
Nonrecurring \| Mortgage servicing rights
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis	576	391
Nonrecurring \| Mortgage servicing rights \| Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis	576	391
Nonrecurring \| Mortgage servicing rights \| Level 3 \| Discounted cash flow
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis	$ 576	$ 391
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.125	0.125
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input		0.224
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.002	0.002
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.100	0.100
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.069	0.075
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.001	0.001
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.122	0.122
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.185	0.190
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.001	0.002
Nonrecurring \| Mortgage loans held for sale \| Maximum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.227
Carrying value per balance sheet
Financial Assets
Cash and due from banks	$ 577,967	$ 379,798
Interest-bearing time deposits with other banks	5,226	934
Loans held for sale		7,725
Loans, net	1,319,568	1,613,385
Financial Liabilities
Time deposits	873,220	861,733
Federal Home Loan Bank borrowings	50,000	50,000
Subordinated Notes, net		65,271
Estimated fair value
Financial Assets
Cash and due from banks	577,967	379,798
Interest-bearing time deposits with other banks	5,226	934
Loans held for sale		7,833
Loans, net	1,313,282	1,516,771
Financial Liabilities
Time deposits	874,274	855,566
Federal Home Loan Bank borrowings	49,370	48,360
Subordinated Notes, net		65,355
Estimated fair value \| Level 1
Financial Assets
Cash and due from banks	577,967	379,798
Interest-bearing time deposits with other banks	5,226	934
Estimated fair value \| Level 2
Financial Assets
Loans held for sale		7,833
Financial Liabilities
Time deposits	874,274	855,566
Federal Home Loan Bank borrowings	49,370	48,360
Subordinated Notes, net		65,355
Estimated fair value \| Level 3
Financial Assets
Loans, net	$ 1,313,282	$ 1,516,771

Equity Securities

12 Months Ended

Dec. 31, 2023

Equity Securities

Equity Securities

Note 4—Equity Securities

Equity securities consist of an investment in a qualified community reinvestment act investment fund, which is a publicly-traded mutual fund and an investment in the common equity of Pacific Coast Banker’s Bank, a thinly traded restricted stock. At December 31, 2023 and 2022, equity securities totaled $4,703 and $4,642, respectively.

Equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in non-interest income in the statements of operations. At December 31, 2023 and 2022, equity securities with readily determinable fair values were $4,457 and $4,396, respectively. The following is a summary of unrealized and realized gains and losses recognized in the consolidated statements of operations:


	Year Ended
	December 31,
	2023		2022		2021
Net gains (loss) recorded during the year on equity securities	$	61	$	(580)	$	(142)
Less: net gains (loss) recorded during the year on equity securities sold during the period		—		—		—
Unrealized gains (loss) recorded during the year on equity securities held at the reporting date	$	61	$	(580)	$	(142)

The Company has elected to account for its investment in a thinly traded, restricted stock using the measurement alternative for equity securities without readily determinable fair values, resulting in the investment carried at cost based on no evidence of impairment or observable trading activity during 2023 and 2022. The investment was reported at $246 at December 31, 2023 and 2022.

Debt Securities-Amortized Cost and Fair Value, Realized Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Debt Securities
Debt securities available for sale, Amortized Cost	$ 440,211	$ 370,489
Debt securities available for sale, Gross Unrealized Gain	84	21
Debt securities available for sale, Gross Unrealized Loss	(21,082)	(26,952)
Debt securities available for sale, Fair Value	419,213	343,558
Accrued interest receivable on available for sale debt securities	1,535	808
Carrying value of debt securities held of any single issuer in excess of 10% of shareholders equity	$ 0	$ 0
Threshold percentage of total shareholders' equity above which securities of any single issuer exceed	10.00%	10.00%
Proceeds from the sale of debt securities	$ 9,578	$ 6,999
Gross realized gains	2	33
Gross realized losses	(115)	(1)
Total net realized gains (loss)	(113)	32
Income tax expense (benefit) on net realized gains (loss)	(32)	9
Collateralized mortgage obligations \| US Government Corporations and Agencies Securities
Debt Securities
Debt securities available for sale, Fair Value	308	353
Debt securities \| Assets pledged as collateral \| FHLB borrowings
Debt Securities
Debt securities available for sale, Fair Value	61,078
Debt securities \| Assets pledged as collateral \| FRB
Debt Securities
Debt securities available for sale, Fair Value	64,105
U.S. Treasury and Agency securities
Debt Securities
Debt securities available for sale, Amortized Cost	253,107	175,878
Debt securities available for sale, Gross Unrealized Gain	57	17
Debt securities available for sale, Gross Unrealized Loss	(4,176)	(7,458)
Debt securities available for sale, Fair Value	248,988	168,437
Mortgage-backed securities
Debt Securities
Debt securities available for sale, Amortized Cost	35,757	41,388
Debt securities available for sale, Gross Unrealized Loss	(3,830)	(4,655)
Debt securities available for sale, Fair Value	31,927	36,733
Collateralized mortgage obligations
Debt Securities
Debt securities available for sale, Amortized Cost	151,196	153,066
Debt securities available for sale, Gross Unrealized Gain	27	4
Debt securities available for sale, Gross Unrealized Loss	(13,066)	(14,829)
Debt securities available for sale, Fair Value	138,157	138,241
Collateralized debt obligations
Debt Securities
Debt securities available for sale, Amortized Cost	151	157
Debt securities available for sale, Gross Unrealized Loss	(10)	(10)
Debt securities available for sale, Fair Value	$ 141	$ 147

Operating Leases

12 Months Ended

Dec. 31, 2023

Operating Leases

Operating Leases

Note 19—Operating Leases

The Company leases its corporate headquarters and branch offices through noncancelable operating lease contracts. Such noncancelable operating lease contracts have remaining terms ranging from 2024 to 2030 and generally have options to extend for one or two five-year periods. The lease term may include options to extend the lease when it is reasonably certain that the option will be exercised based on the facts and circumstances at lease commencement. The lease contracts, most often, provide for rental payments that increase over the lease term based on a fixed percentage or based on a specified consumer price index. Any changes in the consumer price index after the lease commencement date are considered variable lease payments and recorded in the period when incurred. Additionally, the Company, in most cases, is required to pay insurance costs, real estate taxes and other operating expenses such as common area maintenance. The Company has made an accounting policy election for property leases to not separate nonlease components from lease components.

The Company subleased certain office space to entities owned by the Company’s controlling shareholders. Amounts received under such subleases totaled $97 and $439 for the year ended December 31, 2022 and 2021, respectively. The sublease agreements ended on March 31, 2022.

The Company’s operating leases are included in operating lease right-of-use assets and operating lease liabilities in the consolidated balance sheets. The lessors’ respective rates implicit in these operating leases are generally not available and were not determinable from the terms of the lease. Therefore, the Company uses its incremental borrowing rate in determining the present value of the future lease payments when measuring the operating lease liabilities. The incremental borrowing rates are not observable, and therefore the rates are estimated primarily using observable borrowing rates on the Company’s FHLB advances. The FHLB borrowing rates are generally for over-collateralized advances with varying lengths of maturities. Therefore, the risk-free U.S. government bond rate and high-credit quality unsecured corporate bond rates are also considered in estimating the incremental borrowing rates. The Company’s incremental borrowing rates are developed considering its monthly payment amounts and the initial terms of its leases.

The components of total lease costs, which are recorded in non-interest expense – occupancy and equipment, in the consolidated statements of operations for the year ended December 31, 2023, 2022 and 2021 were as follows:


	Year Ended December 31,
	2023		2022		2021
Operating lease costs	$	3,979	$	4,083	$	4,377
Variable lease costs		921		861		1,136
Total lease costs	$	4,900	$	4,944	$	5,513

Maturities of lease liabilities, including reconciliation to the lease liabilities, based on required contractual payments, were as follows:


Year Ended December 31,
2024	$	4,009
2025		3,313
2026		2,490
2027		1,702
2028		1,278
Thereafter		526
Total lease payments		13,318
Less: future interest costs⁽¹⁾		(781)
Present value of lease liabilities	$	12,537

(1)	Computed using the estimated interest rate for each lease

Other information related to the lease liabilities as of and for the year ended December 31, 2023, 2022 and 2021 was as follows:


	Year Ended December 31,
Other Information	2023			2022			2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4,086		$	4,110		$	4,355
Weighted average remaining lease term (years)		4.06			4.85			5.53
Weighted average discount rate		3.00	%		2.97	%		2.94	%

Fair Value - Assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Available for sale debt securities:
Debt securities available for sale, Fair Value	$ 419,213	$ 343,558
Equity securities
Equity securities	4,457	4,396
U.S. Treasury and Agency securities
Available for sale debt securities:
Debt securities available for sale, Fair Value	248,988	168,437
U.S. Treasury and Agency securities \| Recurring
Available for sale debt securities:
Debt securities available for sale, Fair Value	248,988	168,437
U.S. Treasury and Agency securities \| Level 1 \| Recurring
Available for sale debt securities:
Debt securities available for sale, Fair Value	219,582	116,355
U.S. Treasury and Agency securities \| Level 2 \| Recurring
Available for sale debt securities:
Debt securities available for sale, Fair Value	29,406	52,082
Mortgage-backed securities
Available for sale debt securities:
Debt securities available for sale, Fair Value	31,927	36,733
Mortgage-backed securities \| Recurring
Available for sale debt securities:
Debt securities available for sale, Fair Value	31,927	36,733
Mortgage-backed securities \| Level 2 \| Recurring
Available for sale debt securities:
Debt securities available for sale, Fair Value	31,927	36,733
Collateralized mortgage obligations
Available for sale debt securities:
Debt securities available for sale, Fair Value	138,157	138,241
Collateralized mortgage obligations \| Recurring
Available for sale debt securities:
Debt securities available for sale, Fair Value	138,157	138,241
Collateralized mortgage obligations \| Level 2 \| Recurring
Available for sale debt securities:
Debt securities available for sale, Fair Value	138,157	138,241
Collateralized debt obligations
Available for sale debt securities:
Debt securities available for sale, Fair Value	141	147
Collateralized debt obligations \| Recurring
Available for sale debt securities:
Debt securities available for sale, Fair Value	141	147
Collateralized debt obligations \| Level 3 \| Recurring
Available for sale debt securities:
Debt securities available for sale, Fair Value	141	147
Equity securities \| Recurring
Equity securities
Equity securities	4,457	4,396
Equity securities \| Level 1 \| Recurring
Equity securities
Equity securities	$ 4,457	$ 4,396

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings Cumulative effect adjustment (Note 2)	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Cumulative effect adjustment (Note 2)	Total
Balance at beginning of the period at Dec. 31, 2020	$ 80,807	$ 13,544		$ 224,853	$ 387		$ 319,591
Balance at beginning of the period (in shares) at Dec. 31, 2020	49,981,861
Increase (Decrease) in Stockholders' Equity
Net income (loss)				23,390			23,390
Issuance of shares of common stock for cash ($4.50 per share) (Note 11)	$ 1,350						1,350
Issuance of shares of common stock for cash ($4.50 per share) (in shares) (Note 11)	300,000
Repurchase of restricted shares to pay employee tax liability		(46)					(46)
Repurchase of restricted shares to pay employee tax liability (in shares)	(8,536)
Stock-based compensation		626					626
Stock-based compensation (in shares)	187,607
Other comprehensive loss					(1,284)		(1,284)
Balance at end of the period at Dec. 31, 2021	$ 82,157	14,124		248,243	(897)		343,627
Balance at end of the period (in shares) at Dec. 31, 2021	50,460,932
Increase (Decrease) in Stockholders' Equity
Net income (loss) \| ASU 2016-13						$ (778)
Net income (loss) \| ASU 2022-02						276
Net income (loss)				(14,194)			(14,194)
Repurchase of restricted shares to pay employee tax liability		(216)					(216)
Repurchase of restricted shares to pay employee tax liability (in shares)	(32,929)
Issuance of shares of common stock to defined contribution retirement plan (Note 11)	$ 1,138						1,138
Issuance of shares of common stock to defined contribution retirement plan (in shares) (Note 11)	160,978
Stock-based compensation		900					900
Stock-based compensation (in shares)	206,890
Other comprehensive loss					(18,628)		(18,628)
Balance at end of the period (ASU 2016-13) at Dec. 31, 2022			$ 778			778
Balance at end of the period (ASU 2022-02) at Dec. 31, 2022			$ (276)			$ (276)
Balance at end of the period at Dec. 31, 2022	$ 83,295	14,808		234,049	(19,525)		312,627
Balance at end of the period (in shares) at Dec. 31, 2022	50,795,871
Increase (Decrease) in Stockholders' Equity
Net income (loss)				7,413			7,413
Repurchase of restricted shares to pay employee tax liability		(245)					(245)
Repurchase of restricted shares to pay employee tax liability (in shares)	(42,753)
Issuance of shares of common stock to defined contribution retirement plan (Note 11)	$ 1,028						1,028
Issuance of shares of common stock to defined contribution retirement plan (in shares) (Note 11)	184,928
Stock-based compensation		2,097					2,097
Stock-based compensation (in shares)	1,132,315
Other comprehensive loss					4,301		4,301
Balance at end of the period at Dec. 31, 2023	$ 84,323	$ 16,660		$ 241,964	$ (15,224)		$ 327,723
Balance at end of the period (in shares) at Dec. 31, 2023	52,070,361

Debt Securities

12 Months Ended

Dec. 31, 2023

Debt Securities

Debt Securities

Note 3—Debt Securities

The following tables summarize the amortized cost and fair value of available for sale debt securities at December 31, 2023 and 2022 and the corresponding amounts of gross unrealized gains and losses:


	December 31, 2023
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	253,107	$	57	$	(4,176)	$	248,988
Mortgage-backed securities		35,757		—		(3,830)		31,927
Collateralized mortgage obligations		151,196		27		(13,066)		138,157
Collateralized debt obligations		151		—		(10)		141
Total	$	440,211	$	84	$	(21,082)	$	419,213


	December 31, 2022
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	175,878	$	17	$	(7,458)	$	168,437
Mortgage-backed securities		41,388		—		(4,655)		36,733
Collateralized mortgage obligations		153,066		4		(14,829)		138,241
Collateralized debt obligations		157		—		(10)		147
Total	$	370,489	$	21	$	(26,952)	$	343,558

Investment securities with a fair value of $61,078 were pledged as collateral on the FHLB borrowings at December 31, 2023. Additionally, investment securities with a fair value of $64,105 were held by the FRB as collateral for available borrowings under the Bank Term Funding Program.

Accrued interest receivable on available for sale debt securities totaled $1,535 and $808 at December 31, 2023 and 2022, respectively.

The mortgage-backed securities, and a majority of the collateralized mortgage obligations are issued and/or guaranteed by a U.S. government agency (Government National Mortgage Association) or a U.S. government-sponsored enterprise (Federal Home Loan Mortgage Corporation (“Freddie Mac”) or Federal National Mortgage Association (“Fannie Mae”)). The fair value of the private-label collateralized mortgage obligations was $308 and $353 at December 31, 2023 and 2022, respectively.

No securities of any single issuer, other than debt securities issued by the U.S. government, government agency and government-sponsored enterprises, were in excess of 10% of total shareholders’ equity as of December 31, 2023 and 2022.

Information pertaining to sales of available for sale debt securities for the year ended December 31, 2023, 2022 and 2021 is as follows:


	Year Ended December 31,
	2023		2022		2021
Proceeds from the sale of debt securities	$	9,578	$	6,999	$	—

Gross realized gains	$	2	$	33	$	—
Gross realized losses		(115)		(1)		—
Total net realized gains (loss)	$	(113)	$	32	$	—

The income tax expense (benefit) related to the net realized gains (loss) was $(32) and $9 for the year ended December 31, 2023 and 2022, respectively.

The amortized cost and fair value of U.S. Treasury and Agency securities at December 31, 2023 are shown by contractual maturity in the table below. Mortgage-backed securities, collateralized mortgage obligations and collateralized debt obligations are disclosed separately as the expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized		Fair
	Cost		Value
U.S. Treasury and Agency securities:
Due less than one year	$	173,633	$	173,398
Due after one year through five years		79,474		75,590
Mortgage-backed securities		35,757		31,927
Collateralized mortgage obligations		151,196		138,157
Collateralized debt obligations		151		141
Total	$	440,211	$	419,213

The following table summarizes available for sale debt securities, at fair value, in an unrealized loss position for which an allowance for credit losses has not been recorded at December 31, 2023 and 2022, aggregated by major security type and length of time the individual securities have been in a continuous unrealized loss position:


	December 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury and Agency securities	$	49,836	$	(1)	$	125,183	$	(4,175)	$	175,019	$	(4,176)
Mortgage-backed securities		—		—		31,927		(3,830)		31,927		(3,830)
Collateralized mortgage obligations		10,297		(221)		111,554		(12,845)		121,851		(13,066)
Collateralized debt obligations		—		—		141		(10)		141		(10)
Total	$	60,133	$	(222)	$	268,805	$	(20,860)	$	328,938	$	(21,082)


	December 31, 2022
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury and Agency securities	$	100,815	$	(2,839)	$	44,605	$	(4,619)	$	145,420	$	(7,458)
Mortgage-backed securities		5,792		(139)		30,941		(4,516)		36,733		(4,655)
Collateralized mortgage obligations		69,088		(3,169)		64,715		(11,660)		133,803		(14,829)
Collateralized debt obligations		—		—		147		(10)		147		(10)
Total	$	175,695	$	(6,147)	$	140,408	$	(20,805)	$	316,103	$	(26,952)

As of December 31, 2023, the debt securities portfolio consisted of 34 debt securities, with 30 debt securities in an unrealized loss position. For debt securities in an unrealized loss position, the Company has both the intent and ability to hold these investments and, based on the current conditions, the Company does not believe it is likely that it will be required to sell these debt securities prior to recovery of the amortized cost. As the Company had the intent and the ability to hold the debt securities in an unrealized loss position at December 31, 2023, each security with an unrealized loss position was further assessed to determine if a credit loss exists.

The Company’s debt, mortgage-backed securities and the majority of the collateralized mortgage obligations are issued by the U.S. government, its agencies and government-sponsored enterprises. The Company has a long history with no credit losses from issuers of U.S. government, its agencies and government-sponsored enterprises. Also, the Company’s available for sale debt securities are explicitly or implicitly fully guaranteed by the U.S. government. As a result, management does not expect any credit losses on its available for sale debt securities. Accordingly, the Company has not recorded an allowance for credit losses for its available for sale debt securities at December 31, 2023. Similarly, for the same reasons noted above, at December 31, 2022, the Company determined that the unrealized losses in these securities were due to non-credit-related factors, including changes in interest rates and other market conditions.

Related Party Transactions

12 Months Ended

Dec. 31, 2023

Related Party Transactions

Related Party Transactions

Note 18—Related Party Transactions

In May 2021, the Company issued and sold unregistered shares of common stock to its chief executive officer in exchange for cash consideration. Refer to Note 11—Shareholders’ Equity.

Related party leases are disclosed in Note 19—Operating Leases.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Deposits - Scheduled maturities of time deposits (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Scheduled maturities of time deposits
2024	$ 761,709
2025	102,605
2026	7,447
2027	1,303
2028	$ 156

Loans - Credit quality indicator by origination year (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Commercial Portfolio Segment \| Internal Noninvestment Grade \| Construction loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	$ 14
2020	1,591
2019	8,776
Total, term and revolving loans by origination year	10,381
Commercial Portfolio Segment \| Internal Noninvestment Grade \| C&I lending
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	14,461
2022	1,071
Prior	97
Revolving Loans Amortized Costs Basis	130
Total, term and revolving loans by origination year	15,832
Commercial Portfolio Segment \| Internal Noninvestment Grade \| Commercial Mortgage Loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	29,923
2022	82,587
2021	46,879
2020	37,872
2019	18,353
Prior	21,368
Total, term and revolving loans by origination year	236,982
Commercial Portfolio Segment \| Pass \| Construction loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	14
2020	1,591
Total, term and revolving loans by origination year	1,605
Commercial Portfolio Segment \| Pass \| C&I lending
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	14,461
2022	1,071
Prior	97
Revolving Loans Amortized Costs Basis	130
Revolving Loans Converted to Term	73
Total, term and revolving loans by origination year	15,832
Commercial Portfolio Segment \| Pass \| Commercial Mortgage Loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	28,975
2022	79,013
2021	33,694
2020	35,148
2019	6,938
Prior	13,020
Total, term and revolving loans by origination year	196,788
Commercial Portfolio Segment \| Special Mention \| Commercial Mortgage Loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	948
2022	3,574
2021	1,407
2020	2,724
2019	8,610
Prior	4,253
Total, term and revolving loans by origination year	21,516
Commercial Portfolio Segment \| Substandard \| Construction loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2019	8,776
Total, term and revolving loans by origination year	8,776
Commercial Portfolio Segment \| Substandard \| Commercial Mortgage Loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2021	11,778
2019	2,805
Prior	4,095
Total, term and revolving loans by origination year	18,678
Residential Portfolio Segment \| Performing And Nonperforming Financial Instruments \| Residential Mortgage Loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	764
2022	72,840
2021	132,567
2020	99,676
2019	204,532
Prior	567,388
Revolving Loans Amortized Costs Basis	7,729
Revolving Loans Converted to Term	280
Total, term and revolving loans by origination year	1,085,776
Residential Portfolio Segment \| Accrual \| Residential Mortgage Loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	764
2022	72,840
2021	132,567
2020	99,676
2019	202,793
Prior	560,185
Revolving Loans Amortized Costs Basis	7,729
Revolving Loans Converted to Term	280
Total, term and revolving loans by origination year	1,076,834
Residential Portfolio Segment \| Nonaccrual \| Residential Mortgage Loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2019	1,739
Prior	7,203
Total, term and revolving loans by origination year	8,942
Residential Portfolio Segment \| Current Period Gross Charge offs, Performance Rated \| Residential Mortgage Loans
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2019	1,858
Prior	4,601
Revolving Loans Amortized Costs Basis	19
Total, term and revolving loans by origination year	$ 6,478

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Company Only) (Tables)

12 Months Ended

Dec. 31, 2023

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Company Only)

Summary of financial information for Sterling Bancorp, Inc.

CONDENSED BALANCE SHEETS


	December 31,
	2023		2022
ASSETS
Cash held at the Bank	$	14,512	$	20,064
Investment in subsidiaries		313,718		386,363
Other assets		306		1,160
Total assets	$	328,536	$	407,587
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Subordinated Notes, net	$	—	$	65,271
Other liabilities		813		29,689
Total liabilities		813		94,960
Total shareholders’ equity		327,723		312,627
Total liabilities and shareholders’ equity	$	328,536	$	407,587

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


	Year Ended December 31,
	2023		2022		2021
Other (Income) Expense
Interest expense	$	3,727	$	4,969	$	4,127
Provision for contingent losses		—		27,239		—
Gain on extinguishment of Subordinated Notes		(234)		—		—
Other, net		671		7,602		3,574
Total expenses		4,164		39,810		7,701
Loss before income taxes and equity in subsidiaries income		(4,164)		(39,810)		(7,701)
Income tax benefit		(1,122)		(3,461)		(2,108)
Loss before equity in subsidiaries income		(3,042)		(36,349)		(5,593)
Equity in subsidiaries income		10,455		22,155		28,983
Net income (loss)	$	7,413	$	(14,194)	$	23,390
Other comprehensive income (loss)
Equity in other comprehensive income (loss) of subsidiaries		4,301		(18,628)		(1,284)
Comprehensive income (loss)	$	11,714	$	(32,822)	$	22,106

CONDENSED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
	2023		2022		2021
Cash flows from operating activities
Net income (loss)	$	7,413	$	(14,194)	$	23,390
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in subsidiaries income		(10,455)		(22,155)		(28,983)
Gain on extinguishment of Subordinated Notes		(234)		—		—
Provision for contingent losses		—		27,239		—
Other		(37)		(72)		2
Change in operating assets and liabilities:
Other assets		854		617		12,137
Other liabilities		(28,876)		802		(11,897)
Net cash used in operating activities		(31,335)		(7,763)		(5,351)
Cash flows from investing activities
Dividends received from subsidiaries		90,000		—		10,000
Net cash provided by investing activities		90,000		—		10,000
Cash flows from financing activities
Proceeds from issuance of shares of common stock		—		—		1,350
Consideration received for issuance of shares of common stock to defined contribution retirement plan		1,028		1,138		—
Payments on redemption of Subordinated Notes		(65,000)		—		—
Cash paid for surrender of vested shares to satisfy employee tax liability		(245)		(216)		(46)
Net cash provided by (used in) financing activities		(64,217)		922		1,304
Net change in cash		(5,552)		(6,841)		5,953
Cash held at the Bank, beginning of year		20,064		26,905		20,952
Cash held at the Bank, end of year	$	14,512	$	20,064	$	26,905
Supplemental cash flows information:
Cash paid for:
Interest	$	5,195	$	4,484	$	4,249

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies

Commitments and Contingencies

Note 20—Commitments and Contingencies

Financial Instruments with Off-Balance Sheet Risk

The Company is a party to financial instruments with off - balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit, such as loan commitments and unused credit lines, and standby letters of credit, which are not reflected in the consolidated financial statements.

The Company adopted ASU 2016-13, effective January 1, 2023, which requires the Company to estimate expected credit losses for off-balance sheet credit exposures. The Company maintains an estimated liability for unfunded commitments, primarily related to commitments to extend credit, on the consolidated balance sheet. The liability for unfunded commitments is reduced in the period in which the off-balance sheet financial instruments expire, loan funding occurs or is otherwise settled. The following presents the activity in the liability for unfunded commitments for the year ended December 31, 2023:


	Residential		Commercial				Commercial		Other
	Real Estate		Real Estate		Construction		and Industrial		Consumer		Total
Balance, beginning of period	$	—	$	—	$	—	$	—	$	—	$	—
Adoption of ASU 2016-13		53		125		398		3		—		579
Increase (decrease) in provision for (recovery of) credit losses		(52)		(1)		365		5		—		317
Balance, end of period	$	1	$	124	$	763	$	8	$	—	$	896

Unfunded Commitments to Extend Credit

A commitment to extend credit, such as a loan commitment, credit line and overdraft protection, is a legally binding agreement to lend funds to a customer, usually at a stated interest rate and for a specific purpose. Such commitments have fixed expiration dates and generally require a fee. The extension of a commitment gives rise to credit risk. The actual liquidity requirements or credit risk that the Company may experience is expected to be lower than the contractual amount of commitments to extend credit because a significant portion of those commitments are expected to expire without being used. Certain commitments are subject to loan agreements containing covenants regarding the financial performance of the customer that must be met before the Company is required to fund the commitment. The Company uses the same credit policies in making commitments to extend credit as it does in making loans.

Unused Lines of Credit

The Company also issues unused lines of credit to meet customer financing needs. At December 31, 2023, the unused lines of credit include residential second mortgages of $9,789,construction loans of $5,714, commercial real estate of $2,165 and commercial and industrial loans of $874, totaling $18,542. These unused lines of credit consisted of a fixed rate loan of $5,000 with an interest rate of 6.00% and a maturity of two years and variable-rate loans of $13,542 with interest rates ranging from 4.72% to 10.88% and maturities ranging from five months to 22 years.

Standby Letters of Credit

Standby letters of credit are issued on behalf of customers in connection with construction contracts between the customers and third parties. Under standby letters of credit, the Company assures that the third parties will receive specified funds if customers fail to meet their contractual obligations. The credit risk to the Company arises from its obligation to make payment in the event of a customer’s contractual default. The maximum amount of potential future payments guaranteed by the Company is limited to the contractual amount of these letters. Collateral may be obtained at exercise of the commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

The following is a summary of the total amount of unfunded commitments to extend credit and standby letters of credit outstanding at December 31, 2023 and 2022:

Lease Commitments

The Company’s lease commitments are disclosed in Note 19—Operating Leases.

Legal Proceedings

The Company and its subsidiaries may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened legal proceedings, except as described below, that are considered other than routine legal proceedings. The Company believes that the ultimate disposition or resolution of its routine legal proceedings, in the aggregate, are immaterial to its financial position, results of operations or liquidity.

In July 2023, the United States District Court for the Eastern District of Michigan approved the Company’s Plea Agreement (the “Plea Agreement”) with the DOJ, resolving the DOJ’s investigation focused on the Bank’s Advantage Loan Program and related issues, including residential lending practices and public disclosures about that program contained in the Company's filings with the SEC. Under the Plea Agreement, the Company pleaded guilty to one count of securities fraud primarily relating to disclosures with respect to the Advantage Loan Program contained in the Company’s 2017 Registration Statement for its initial public offering and its immediately following Annual Reports on Form 10-K filed in March 2018 and March 2019. Consistent with the Plea Agreement, the sentence issued by the court required the Company to pay $27,239 in restitution for the benefit of non-insider victim shareholders; further enhance its compliance program and internal controls with respect to securities law compliance; and provide periodic reports to the DOJ with respect to compliance matters. No criminal fine was imposed. The Company’s obligations under the Plea Agreement are generally effective for three years. This resolution released the Company, as well as the Bank, from further prosecution for securities fraud and underlying mortgage fraud in the Advantage Loan Program.

The Company had a liability for estimated contingent losses of $27,239 for the outcome of the investigations which was recorded in other liabilities in the consolidated balance sheet at December 31, 2022. The restitution amount of $27,239 was paid in the third quarter of 2023 and will be administered by a special master appointed by the court. The restitution payment was recorded against the liability for contingent losses.

The Bank has incurred and expects to continue to incur significant costs in connection with its ongoing cooperation with the government investigations of certain individuals and the advancement or reimbursement of third parties for the legal costs pursuant to requests for indemnification and advancement of expenses, which are reflected in the Company’s consolidated statements of operations for the year ended December 31, 2023 and 2022. In addition, the Company was recently advised that its directors and officers insurance policies for matters related to the ongoing government investigations against selected individuals was exhausted, and the final payment was received in the fourth quarter of 2023. The Company understands that the government investigations into certain individuals are continuing, including calling individuals as witnesses. Therefore, the Company expects to continue to receive claims for advancement or reimbursement of legal fees and any future costs the Company incurs will not be reimbursed by its insurance carriers.

Mortgage Repurchase Liability

The Company has previously sold portfolio loans originated under the Advantage Loan Program to private investors in the secondary market. The Company also sells conventional residential real estate loans (which excludes Advantage Loan Program loans) in the secondary market primarily to Fannie Mae on an ongoing basis. In connection with these loans sold, the Company makes customary representations and warranties about various characteristics of each loan. The Company may be required pursuant to the terms of the applicable mortgage loan purchase and sale agreements to repurchase any previously sold loan or indemnify (make whole) the investor for which the representation or warranty of the Company proves to be inaccurate, incomplete or misleading. In the event of a repurchase, the Company is typically required to pay the unpaid principal balance, the proportionate premium received when selling the loan and certain expenses. As a result, the Company may incur a loss with respect to each repurchased loan.

To avoid the uncertainty of audits and inquiries by third-party investors in the Advantage Loan Program, beginning at the end of the second quarter of 2020, the Company commenced making offers to each of those investors to repurchase 100% of the previously sold Advantage Loan Program loans. These loans were previously sold to third-party investors with servicing of the loan retained. Losses expected to be incurred upon the repurchase of such loans are reflected in the mortgage repurchase liability.

In 2022, the Company repurchased pools of Advantage Loan Program loans with a total outstanding unpaid principal balance of $65,621. In connection with these repurchases, the Company recognized a loss of $2,303 related to a fair value discount in other non-interest expense and a disposition of mortgage servicing rights of $863 and charged a loss of $1,506 against the mortgage repurchase liability.

In 2021, certain third-party investors accepted the above-mentioned offer, from which the Company repurchased pools of Advantage Loan Program loans previously sold with a total outstanding unpaid principal balance of $173,829. In connection with these repurchases, the Company recognized a disposition of mortgage servicing rights of $2,381 and charged a loss of $5,511 against the mortgage repurchase liability.

Pursuant to the existing agreements with such investors, the Company also agreed to repurchase additional pools of Advantage Loan Program loans at the predetermined repurchase prices as stated in the agreements. At December 31, 2023, there is an outstanding agreement to repurchase an additional pool of Advantage Loan Program loans with an unpaid principal balance of $16,902 that extends to July 2025, with the final decision to effect any such repurchase, as determined by the applicable investor.

At December 31, 2023 and 2022, the mortgage repurchase liability was $750 and $809, respectively, which is included in other liabilities in the consolidated balance sheets. The unpaid principal balance of residential real estate loans sold that were subject to potential repurchase obligations in the event of breach of representations and warranties totaled $49,667 and $112,542 at December 31, 2023 and 2022, respectively, including Advantage Loan Program loans totaling $33,044 and $43,274 at December 31, 2023 and 2022, respectively.

Activity in the mortgage repurchase liability was as follows:


	Year Ended December 31,
	2023		2022		2021
Balance, beginning of period	$	809	$	2,954	$	9,699
Net provision (recovery)		(59)		(639)		(1,234)
Loss on loan repurchases		—		(1,506)		(5,511)
Balance, end of period	$	750	$	809	$	2,954

Shareholders' Equity

12 Months Ended

Dec. 31, 2023

Shareholders' Equity

Shareholders' Equity

Note 11— Shareholders’ Equity

Capital Stock

The Company’s authorized capital stock consists of 10,000,000 shares of preferred stock and 500,000,000 shares of no par common stock.

Preferred Stock

The board of directors is authorized to issue preferred stock from time to time in one or more series, with such designations and such relative voting, dividend, liquidation and other rights, preferences and limitations as may be adopted by the board of directors. No shares of preferred stock are currently issued or outstanding.

No Par Common Stock

Holders of common stock are entitled to one vote per share on all matters submitted to shareholders and entitled to dividends at the sole direction of the board of directors. The holders have no preemptive, conversion or subscription rights, and there is no redemption or sinking fund provisions with respect to such shares. The common stock is subordinate to the series preferred stock with respect to dividend rights or rights upon liquidation, winding up and dissolution of the Company.

In April 2023, the Company issued and contributed 184,928 shares of common stock to fund the matching contribution made under the Bank’s defined contribution retirement plan. The contribution amount of $1,028 was valued using the closing market price of the stock on the date contributed or $5.56 per share.

In April 2022, the Company issued and contributed 160,978 shares of common stock to fund the matching contribution made under the Company’s defined contribution retirement plan. The contribution amount of $1,138 was valued using the closing market price of the stock on the date contributed or $7.07 per share.

In May 2021, the Company issued and sold 300,000 unregistered shares of common stock to its chief executive officer pursuant to the terms of the stock purchase agreement and employment agreement entered into at the time of the chief executive officer’s employment for cash consideration of $1,350 or $4.50 per share, the fair market value on the date of sale.

Stock Repurchase Program

The board of directors previously approved the repurchase of up to $50,000 of the Company’s outstanding shares of common stock. The stock repurchase program permits the Company to purchase shares of its common stock from time to time in the open market or in privately negotiated transactions. The program does not have an expiration date. Under this program, the Company is not obligated to repurchase shares of its common stock. The repurchased shares will be canceled and returned to authorized but unissued status. As of December 31, 2023, the Company had $19,568 of common stock purchases remaining that may be made under the program. In March 2020, the Company suspended the stock repurchase program.

The Company is required to obtain the prior approval of the FRB in order to repurchase shares of the Company's common stock.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
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-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Nature of Operations (Details) $ in Thousands	1 Months Ended	12 Months Ended
Nature of Operations (Details) $ in Thousands	Jul. 31, 2021 USD ($)	Dec. 31, 2023 item segment	Dec. 31, 2021 USD ($)
Nature of Operations
Number of branches \| item		27
Gain on sale of branch office			$ 1,417
Net cash paid on sale of branch office			63,545
Number of reportable segments \| segment		1
Bellevue, Washington branch office
Nature of Operations
Disposal group deposits	$ 65,437
Gain on sale of branch office			$ 1,417
Net cash paid on sale of branch office	$ 63,545
San Francisco and Los Angeles, California
Nature of Operations
Number of branches \| item		25

Summary of Significant Accounting Policies - Employee Retention Credits under CARES Act (Details) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2019 employee
Summary of Significant Accounting Policies
Percentage of Employee Retention Credits to qualified wages payments to employees		70.00%
CARES Act ERC tax credit benefit recorded			$ 2,130		$ 6,529
CARES Act ERC tax refunds or credits received				$ 2,254
CARES Act ERC tax remaining receivable			$ 2,145	$ 4,275
Maximum [Member]
Summary of Significant Accounting Policies
Average number of employees \| employee						500
Minimum [Member]
Summary of Significant Accounting Policies
Decrease in gross receipts (percentage)	20

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Company Only)

12 Months Ended

Dec. 31, 2023

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Company Only)

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Company Only)

Note 21—Condensed Financial Information of Sterling Bancorp, Inc. (Parent Company Only)

Summarized financial information for Sterling Bancorp, Inc. (the “Parent”) is shown below. The Parent has no significant operating activities.

CONDENSED BALANCE SHEETS


	December 31,
	2023		2022
ASSETS
Cash held at the Bank	$	14,512	$	20,064
Investment in subsidiaries		313,718		386,363
Other assets		306		1,160
Total assets	$	328,536	$	407,587
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Subordinated Notes, net	$	—	$	65,271
Other liabilities		813		29,689
Total liabilities		813		94,960
Total shareholders’ equity		327,723		312,627
Total liabilities and shareholders’ equity	$	328,536	$	407,587

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


	Year Ended December 31,
	2023		2022		2021
Other (Income) Expense
Interest expense	$	3,727	$	4,969	$	4,127
Provision for contingent losses		—		27,239		—
Gain on extinguishment of Subordinated Notes		(234)		—		—
Other, net		671		7,602		3,574
Total expenses		4,164		39,810		7,701
Loss before income taxes and equity in subsidiaries income		(4,164)		(39,810)		(7,701)
Income tax benefit		(1,122)		(3,461)		(2,108)
Loss before equity in subsidiaries income		(3,042)		(36,349)		(5,593)
Equity in subsidiaries income		10,455		22,155		28,983
Net income (loss)	$	7,413	$	(14,194)	$	23,390
Other comprehensive income (loss)
Equity in other comprehensive income (loss) of subsidiaries		4,301		(18,628)		(1,284)
Comprehensive income (loss)	$	11,714	$	(32,822)	$	22,106

CONDENSED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
	2023		2022		2021
Cash flows from operating activities
Net income (loss)	$	7,413	$	(14,194)	$	23,390
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in subsidiaries income		(10,455)		(22,155)		(28,983)
Gain on extinguishment of Subordinated Notes		(234)		—		—
Provision for contingent losses		—		27,239		—
Other		(37)		(72)		2
Change in operating assets and liabilities:
Other assets		854		617		12,137
Other liabilities		(28,876)		802		(11,897)
Net cash used in operating activities		(31,335)		(7,763)		(5,351)
Cash flows from investing activities
Dividends received from subsidiaries		90,000		—		10,000
Net cash provided by investing activities		90,000		—		10,000
Cash flows from financing activities
Proceeds from issuance of shares of common stock		—		—		1,350
Consideration received for issuance of shares of common stock to defined contribution retirement plan		1,028		1,138		—
Payments on redemption of Subordinated Notes		(65,000)		—		—
Cash paid for surrender of vested shares to satisfy employee tax liability		(245)		(216)		(46)
Net cash provided by (used in) financing activities		(64,217)		922		1,304
Net change in cash		(5,552)		(6,841)		5,953
Cash held at the Bank, beginning of year		20,064		26,905		20,952
Cash held at the Bank, end of year	$	14,512	$	20,064	$	26,905
Supplemental cash flows information:
Cash paid for:
Interest	$	5,195	$	4,484	$	4,249

The Parent received cash dividends from the Bank of $90,000 and $10,000 during the year ended December 31, 2023 and 2021.

Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2023

Regulatory Capital Requirements

Schedule of minimum requirements under prompt corrective action regulations classifications


					To be Well
					Capitalized Under
					Prompt Corrective
					Action Regulations
	Actual				(CBLR Framework)
	Amount		Ratio		Amount		Ratio
December 31, 2023
Tier 1 (core) capital to average total assets (leverage ratio)
Consolidated	$	342,368	13.95	%	$	220,950	9.00	%
Bank	$	328,362	13.38	%	$	220,920	9.00	%

Schedule of actual and minimum required capital amounts and ratios


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2022
Total adjusted capital to risk-weighted assets
Consolidated	$	390,591	25.64	%	$	121,888	8.00	%		N/A	N/A
Bank		425,159	27.93			121,795	8.00		$	152,244	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		332,068	21.79			91,416	6.00			N/A	N/A
Bank		405,803	26.65			91,346	6.00			121,795	8.00
Common Equity Tier 1 (CET1)
Consolidated		332,068	21.79			68,562	4.50			N/A	N/A
Bank		405,803	26.65			68,510	4.50			98,959	6.50
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)
Consolidated		332,068	13.54			98,073	4.00			N/A	N/A
Bank		405,803	16.56			98,032	4.00			122,540	5.00

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Summary of Significant Accounting Policies

Principles of Consolidation

All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

Fair Value Measurements

Consolidated Statements of Cash Flows

Cash flows related to customer loans are classified within operating and investing activities in the consolidated statements of cash flows based on their initial classification of the loan.

Cash and Due from Banks

Interest-bearing Time Deposits with Other Banks

Concentration of Credit Risk

Employee Retention Credits Under the CARES Act

Debt Securities

Equity Securities

Loans Held for Sale

Loans

Allowance for Credit Losses - Loans

Allowance for Credit Losses - Loans (Effective January 1, 2023)

As disclosed above, the Company has identified the following portfolio segments used in measuring its expected credit losses in the loan portfolio and their respective risk characteristics.

Allowance for Loan Losses (Prior to January 1, 2023)

Mortgage Servicing Rights, net

Transfers of Financial Assets

Federal Home Loan Bank Stock

Federal Reserve Bank Stock

Company-Owned Life Insurance

During the year ended December 31, 2022, the Company surrendered certain life insurance policies related to former executives and a controlling shareholder. Refer to Note 15—Employee Benefit Plans.

Long-Lived Assets

Liability for Unfunded Commitments

Liability for Unfunded Commitments (Effective January 1, 2023)

Mortgage Repurchase Liability

Legal Contingencies and Litigation Accruals

Revenue from Contracts with Customers

Stock-based Compensation

Comprehensive Income (Loss)

Income Taxes

Income (Loss) per Share, Basic and Diluted

Operating Segments

New Accounting Standards Adopted in 2023


	Prior to		Adjustments for		Adjustments for		After
	Adoption		ASU 2016-13		ASU 2022-02		Adoption
Assets:
Allowance for credit losses – loans	$	45,464	$	(1,651)	$	380	$	44,193
Liabilities:
Liability for unfunded commitments		—		579		—		579
Pretax cumulative effect adjustment of a change in accounting principle				(1,072)		380
Less: income taxes				294		(104)
Cumulative effect adjustment of a change in accounting principle, net of tax			$	(778)	$	276

Recently Issued Accounting Standards Not Yet Adopted

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2023	Dec. 31, 2022
Concentration of Credit Risk
Loans held for sale			$ 7,725
Loans receivable		$ 1,319,568	1,613,385
Loans receivable			1,658,849
Minimum down payment percentage for Advantage Loan Program loans	35.00%
Maximum
Concentration of Credit Risk
Cash, FDIC Insured Amount		$ 250
Residential real estate
Concentration of Credit Risk
Loans receivable			$ 1,391,276
Residential real estate loans \| Loans receivables \| Residential real estate
Concentration of Credit Risk
Concentration of credit risk		80.00%	84.00%
California \| Loans receivables \| Residential real estate
Concentration of Credit Risk
Concentration of credit risk		80.00%	81.00%
Advantage Loan Program \| Loans receivables \| Residential real estate
Concentration of Credit Risk
Loans held for sale			$ 6,181
Loans receivable		$ 628,245
Loans receivable			880,373
Loans Held For Sale Include Nonaccrual Loans		$ 58	$ 63

Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Stock-based Compensation

Summary of stock option activity


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Shares	Price		Term	Value
				(Years)
Outstanding at January 1, 2023	349,545	$	5.19	7.17	$	627
Granted	—
Exercised	—
Forfeited/expired	(9,150)	$	13.73
Outstanding at December 31, 2023	340,395	$	4.96	6.23	$	531
Exercisable at December 31, 2023	340,395	$	4.96	6.23	$	531

Summary of the company's restricted stock awards activity


		Weighted Average
	Number	Grant Date
	of Shares	Fair Value
Nonvested at January 1, 2023	390,125	$	6.17
Granted	1,195,838		5.15
Vested	(157,870)		6.27
Forfeited	(63,523)		6.02
Nonvested at December 31, 2023	1,364,570	$	5.27

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Company Only) - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other (Income) Expense
Interest expense	$ 3,727	$ 4,969	$ 4,127
Gain on extinguishment of Subordinated Notes	234
Income tax benefit	(3,149)	(6,629)	(9,643)
Net income (loss)	7,413	(14,194)	23,390
Other comprehensive income (loss)
Comprehensive income (loss)	11,714	(32,822)	22,106
Parent Company \| Reportable legal entities
Other (Income) Expense
Interest expense	3,727	4,969	4,127
Provision for contingent losses		27,239
Gain on extinguishment of Subordinated Notes	(234)
Other, net	671	7,602	3,574
Total expenses	4,164	39,810	7,701
Loss before income taxes and equity in subsidiaries income	(4,164)	(39,810)	(7,701)
Income tax benefit	(1,122)	(3,461)	(2,108)
Loss before equity in subsidiaries income	(3,042)	(36,349)	(5,593)
Equity in subsidiaries income	10,455	22,155	28,983
Net income (loss)	7,413	(14,194)	23,390
Other comprehensive income (loss)
Equity in other comprehensive income (loss) of subsidiaries	4,301	(18,628)	(1,284)
Comprehensive income (loss)	$ 11,714	$ (32,822)	$ 22,106

Leasehold Improvements and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leasehold Improvements and Equipment, net
Leasehold improvements and equipment, gross	$ 23,928	$ 23,551
Less: accumulated depreciation and amortization	(18,498)	(17,250)
Leasehold improvements and equipment, net	5,430	6,301
Depreciation and amortization on leasehold improvements and equipment	1,331	1,541	$ 1,754
Leasehold improvements
Leasehold Improvements and Equipment, net
Leasehold improvements and equipment, gross	11,658	11,592
Furniture and equipment
Leasehold Improvements and Equipment, net
Leasehold improvements and equipment, gross	$ 12,270	$ 11,959
Minimum \| Furniture and equipment
Leasehold Improvements and Equipment, net
Estimated Useful Life (in years)	3 years
Maximum \| Furniture and equipment
Leasehold Improvements and Equipment, net
Estimated Useful Life (in years)	7 years

Subordinated Notes, net (Details) - USD ($) $ in Thousands		12 Months Ended
Subordinated Notes, net (Details) - USD ($) $ in Thousands	Jul. 15, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Subordinated Notes, net
Gain on extinguishment of Subordinated Notes		$ (234)
Interest expense		3,727	$ 4,969	$ 4,127
Total			65,271
Subordinated notes
Subordinated Notes, net
Interest rate (in percent)	7.00%
Redemption price percentage	100.00%
Cash payment on redemption	$ 66,821
Gain on extinguishment of Subordinated Notes	$ 234
Interest expense		3,727	4,969	$ 4,127
Subordinated Notes		0	65,000
Unamortized note premium		0	271
Total		$ 0	$ 65,271
Interest rate (as a percent)			9.90%
LIBOR \| Subordinated notes
Subordinated Notes, net
Variable interest rate on subordinate notes (in percent)		5.82%