A Letter to Our Clients

To Our Valued Clients,

We are pleased to report another solid financial result in 2022. Earnings per share were $8.29, while dividends paid were $7.50 per share. Our strong earnings drove the Bank’s Return on Assets (ROA) and Return on Equity (ROE) to 1.52% and 15.3%, respectively.  While less robust than 2021, our 2022 financial results remain within the top quartile of our industry peers. Additionally, while 2021 net income was enhanced by gains on the sale of OREO, strong BOLI investment returns and fees related to PPP loans, none of which repeated this year, in 2022, it was the underlying operating trends of the bank that improved. Net Interest Income rose more than $9.0 million, or 12.6%, as the bank’s net interest margin expanded materially. Commercial loans resumed modest growth, no new credit provisions were required as credit quality continued to improve and operating expenses were lower than 2021. Our regulatory capital ratios remain top quartile while tangible common equity ratio was 10.4% at year-end.

In 2022, Amboy’s story was about its balance sheet and interest rate management. Most recently, the banking industry has been going through significant consternation after the failures of Silicon Valley Bank and Signature Bank. Amboy Bank’s business model could not be more different than either of these banks. From 2020 through 2022, the banking industry experienced a 35% increase in deposits due to actions taken by the Federal Reserve and the Federal Government to combat the negative economic effects of COVID.  Amboy’s deposits increased a similar percentage. Management took a very conservative approach to deploying these new deposits. First, we continued to make loans to existing and new customers in our community. Second, we invested excess funds primarily in short maturity, NJ municipal bonds and US Treasuries. Third, we purchased hedges for our own floating rate debt to lock in long term capital at low rates. As market interest rates rose in the second half of 2022, our assets’ earning yields increased, while our funding costs lagged, which drove the Bank’s significant net interest margin expansion. Additionally, our available-for-sale and held-to-maturity investment portfolios and hedging strategy yielded less than $2.4 million in net unrealized losses at year-end 2022. This was an excellent result. Management remains vigilant in managing risk and is very confident in the financial position and health of the Bank.

As always, we are grateful for the talent and hard work of the Amboy team. Over the year, we saw COVID subside and the team resetting and reaching out to again establish personal relationships. We affirmed, even as we rolled out new technology, we are a traditional community bank focused on people, responsive service and everyday value.  The result was being Voted Best Bank for our twenty-fifth year in a row.

I, and the rest of the Amboy Bank executive management team, are available at any time to assist you if you have questions about the industry, the Bank or maybe how best to consolidate all your relationships at Amboy. We are honored to be a reliable partner in your financial journey, and we look forward to continuing to exceed your expectations in the years to come.

G. Gregory Scharpf
President and CEO
Amboy Bancorp Financial/Capital
As of December 31, 2022
(Numbers in thousands)
Cash $58,388
Securities $897,668
Due 1 Yr or Less $450,000
Due Greater than 1 Yr $447,668
Loans $1,568,557
Other Assets $194,392
Total $2,719,005
Liabilities and Equity
Deposits $2,306,729
Other Liabilities $130,497
Equity $281,779
Total $2,719,005
Key Numbers
Net Income $42,870
Loan to Deposits 67%
Bank Capital Ratios Actual Well-Capitalized
Tangible Common Equity 11.44% N/A
Leverage 11.49% 5%
Total Risk Based 16.62% 10%


Additional Resources

  • FDIC Deposit Insurance Coverage Overview
  • FDIC Deposit Insurance FAQs