• BCB Bancorp, Inc. Earns $6.1 Million in Fourth Quarter 2023; Reports $0.35 EPS and Declares Quarterly Cash Dividend of $0.16 Per Share

    المصدر: Nasdaq GlobeNewswire / 25 يناير 2024 07:30:01   America/Chicago

    BAYONNE, N.J., Jan. 25, 2024 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $6.1 million for the fourth quarter of 2023, compared to $6.7 million in the third quarter of 2023, and $12.1 million for the fourth quarter of 2022. Earnings per diluted share for the fourth quarter of 2023 were $0.35, compared to $0.39 in the preceding quarter and $0.69 in the fourth quarter of 2022.

    The Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on February 16, 2024 to common shareholders of record on February 5, 2024.

    As previously announced, the Company named Michael A. Shriner as the President and Chief Executive Officer of BCB Bancorp, Inc. and BCB Bank, effective January 1, 2024. Mr. Shriner, a 36-year veteran of banking, was formerly President and Chief Executive Officer of Millington, New Jersey-based MSB Financial Corp. and Millington Bank prior to being acquired by Kearny Bank. Mr. Shriner joined Millington Bank in 1987 and held various leadership positions including that of Chief Operating Officer and Board member prior to his promotion to President and Chief Executive Officer in 2012. Most recently, he held the role of Market President for Kearny Bank where he transitioned legacy Millington Bank customers to Kearny Bank following the merger.

    “BCB Bank is committed to its community and focused on providing best-in-class service to its customers. Historically, the Bank has posted strong growth while prudently managing its profitability, liquidity, capital, and asset quality profile. I am thrilled to be a part of the BCB Bank team and I am excited at the prospect of leading this organization and to achieve our future financial goals and initiatives,” stated Mr. Shriner.

    Executive Summary

    • Total deposits were $2.979 billion at December 31, 2023 compared to $2.820 billion at September 30, 2023.
    • Net interest margin was 2.57 percent for the fourth quarter of 2023, compared to 2.78 percent for the third quarter of 2023, and 3.76 percent for the fourth quarter of 2022.
      • Total yield on interest-earning assets increased 2 basis points to 5.33 percent for the fourth quarter of 2023, compared to 5.31 percent for the third quarter of 2023, and increased 48 basis points from 4.85 percent for the fourth quarter of 2022.
      • Total cost of interest-bearing liabilities increased 28 basis points to 3.45 percent for the fourth quarter of 2023, compared to 3.17 percent for the third quarter of 2023, and increased 199 basis points from 1.46 percent for the fourth quarter of 2022.
    • The efficiency ratio for the fourth quarter was 61.0 percent compared to 57.1 percent in the prior quarter, and 51.3 percent in the fourth quarter of 2022.
    • The annualized return on average assets ratio for the fourth quarter was 0.63 percent, compared to 0.70 percent in the prior quarter, and 1.46 percent in the fourth quarter of 2022.
    • The annualized return on average equity ratio for the fourth quarter was 7.9 percent, compared to 8.9 percent in the prior quarter, and 17.0 percent in the fourth quarter of 2022.
    • The provision for credit losses was $1.9 million in the fourth quarter of 2023 compared to $2.2 million for the third quarter of 2023. In the fourth quarter of 2022 the Bank recorded a credit to the provision of $500 thousand.
    • The allowance for credit losses (“ACL”) as a percentage of non-accrual loans was 178.9 percent at December 31, 2023, compared to 402.4 percent for the prior quarter-end and 633.6 percent at December 31, 2022. The total non-accrual loans were $18.8 million at December 31, 2023, $7.9 million at September 30, 2023 and $5.1 million at December 31, 2022.
    • Total loans receivable, net of the allowance for credit losses, increased 7.7 percent to $3.280 billion at December 31, 2023, up from $3.045 billion at December 31, 2022, but down 0.2 percent from $3.286 billion at September 30, 2023.

    Balance Sheet Review

    Total assets increased by $286.2 million, or 8.1 percent, to $3.832 billion at December 31, 2023, from $3.546 billion at December 31, 2022. The increase in total assets was mainly related to increases in total loans and in cash and cash equivalents.

    Total cash and cash equivalents increased by $50.2 million, or 21.9 percent, to $279.5 million at December 31, 2023, from $229.4 million at December 31, 2022. The increase was primarily due to an increase in Federal Home Loan Bank (“FHLB”) borrowings and in deposits.

    Loans receivable, net, increased by $234.4 million, or 7.7 percent, to $3.280 billion at December 31, 2023, from $3.045 billion at December 31, 2022. Total loan increases during 2023 included increases of $90.2 million in commercial business loans, $88.9 million in commercial real estate and multi-family loans, $47.9 million in construction loans and $9.8 million in home equity and consumer loans. 1-4 family residential loans decreased $1.8 million. The allowance for credit losses increased $1.2 million to $33.6 million, or 178.9 percent of non-accruing loans and 1.01 percent of gross loans, at December 31, 2023, as compared to an allowance for credit losses of $32.4 million, or 633.6 percent of non-accruing loans and 1.05 percent of gross loans, at December 31, 2022.

    Total investment securities decreased by $12.5 million, or 11.5 percent, to $96.9 million at December 31, 2023, from $109.4 million at December 31, 2022, representing unrealized losses, calls and maturities, and repayments.

    Deposit liabilities increased by $167.5 million, or 6.0 percent, to $2.979 billion at December 31, 2023, from $2.812 billion at December 31, 2022. Certificates of deposits and money market accounts increased $417.9 million and $65.4 million, respectively, offset by interest bearing demand, non-interest bearing and savings and club accounts which declined $315.8 million during the twelve months of 2023.

    Debt obligations increased by $90.7 million to $510.4 million at December 31, 2023 from $419.7 million at December 31, 2022. The weighted average interest rate of FHLB advances was 4.21 percent at December 31, 2023 and 4.07 percent at December 31, 2022. The weighted average maturity of FHLB advances as of December 31, 2023 was 1.93 years. The interest rate of our subordinated debt balances was 8.36 percent at December 31, 2023 and 5.62 percent at December 31, 2022 due to the fixed-rate period on such debt ending as of July 31, 2023.

    Stockholders’ equity increased by $22.8 million, or 7.8 percent, to $314.1 million at December 31, 2023, from $291.3 million at December 31, 2022. The increase was primarily attributable to the increase in retained earnings of $20.8 million, or 18.1 percent, to $135.9 million at December 31, 2023 from $115.1 million at December 31, 2023.

    Fourth Quarter 2023 Income Statement Review

    Net income was $6.1 million for the fourth quarter ended December 31, 2023 and $12.1 million for the fourth quarter ended December 31, 2022. The decline was primarily driven by lower net interest income, higher credit loss provisioning and higher non-interest expenses, which were partially offset by an increase in non-interest income for the fourth quarter of 2023 as compared with the fourth quarter of 2022.

    Net interest income decreased by $6.3 million, or 20.7 percent, to $23.9 million for the fourth quarter of 2023, from $30.2 million for the fourth quarter of 2022. The decrease in net interest income resulted from higher interest expense which was partially offset by higher interest income.

    Interest income increased by $10.8 million, or 27.9 percent, to $49.7 million for the fourth quarter of 2023 from $38.9 million for the fourth quarter of 2022. The average balance of interest-earning assets increased $521.4 million, or 16.3 percent, to $3.729 billion for the fourth quarter of 2023 from $3.207 billion for the fourth quarter of 2022, while the average yield increased 48 basis points to 5.33 percent for the fourth quarter of 2023 from 4.85 percent for the fourth quarter of 2022.

    Interest expense increased by $17.1 million to $25.8 million for the fourth quarter of 2023 from $8.7 million for the fourth quarter of 2022. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 199 basis points to 3.45 percent for the fourth quarter of 2023 from 1.46 percent for the fourth quarter of 2022, while the average balance of interest-bearing liabilities increased by $607.5 million to $2.990 billion for the fourth quarter of 2023 from $2.382 billion for the fourth quarter of 2022. The increase in the average cost of funds resulted primarily from the persistently high interest rate environment.

    The net interest margin was 2.57 percent for the fourth quarter of 2023 compared to 3.76 percent for the fourth quarter of 2022. The decrease in the net interest margin compared to the fourth quarter of 2022 was the result of the increase in the cost of interest-bearing liabilities partially offset by the increase in the yield on interest-earning assets.

    During the fourth quarter of 2023, the Company recognized $233,000 in net charge-offs compared to $322,000 in net charge-offs in the fourth quarter of 2022. The Bank had non-accrual loans totaling $18.8 million, or 0.57 percent of gross loans, at December 31, 2023 as compared to $5.1 million, or 0.17 percent of gross loans, at December 31, 2022. The allowance for credit losses on loans was $33.6 million, or 1.01 percent of gross loans at December 31, 2023, and $32.4 million, or 1.05 percent of gross loans at December 31, 2022. The provision for credit losses was $1.9 million for the fourth quarter of 2023 compared to a $500,000 credit for the fourth quarter of 2022. Management believes that the allowance for credit losses on loans was adequate at December 31, 2023 and December 31, 2022.

    Non-interest income increased by $2.2 million to $3.2 million for the fourth quarter of 2023 from $1.1 million for the fourth quarter of 2022. The increase in total non-interest income was mainly related to gains on equity securities of $1.8 million and an increase in fees and service charges of $307,000.

    Non-interest expense increased by $531,000, or 3.3 percent, to $16.6 million for the fourth quarter of 2023 from $16.0 million for the fourth quarter of 2022. The increase in such expenses for the fourth quarter of 2023 was primarily driven by higher regulatory assessment charges, higher salaries and employee benefits, and increased data processing expenses compared to the fourth quarter of 2022. The fourth quarter of 2023 salaries and benefits expense included a previously disclosed one-time payment of $1.17 million to Thomas Coughlin, the Company’s former President and Chief Executive Officer.

    The income tax provision decreased by $1.0 million, or 28.6 percent, to $2.6 million for the fourth quarter of 2023 from $3.6 million for the fourth quarter of 2022. The consolidated effective tax rate was 29.9 percent for the fourth quarter of 2023 compared to 23.1 percent for the fourth quarter of 2022. The income tax provision for the fourth quarter of 2022 benefited from the reversal of a portion of tax accrual that was no longer required to cover the tax liability.

    Year-to-Date Income Statement Review

    Net income decreased by $16.1 million, or 35.3 percent, to $29.5 million for the year ended December 31, 2023 from $45.6 million for the year ended December 31, 2022. The decrease in net income was driven by less net interest income and an increased provision for credit losses on loans being recorded.

    Net interest income decreased by $9.9 million, or 8.7 percent, to $104.1 million for the year of 2023 from $113.9 million for the year of 2022. The decrease in net interest income resulted from a $66.8 million increase in interest expense, offset by an increase of $56.9 million in interest income.

    The $56.9 million increase in interest income to $188.4 million for the twelve months of 2023, was a 43.3 percent increase from $131.4 million for the twelve months of 2022. The average balance of interest-earning assets increased $641.0 million, or 21.3 percent, to $3.652 billion for the twelve months of 2023, from $3.011 billion for the twelve months of 2022, while the average yield increased 79 basis points to 5.16 percent from 4.37 percent for the same comparable period. The increase in the average balance of interest-earning assets and in interest income mainly related to an increase in the average balance of loans receivable of $654.6 million to $3.281 billion for the twelve months of 2023, from $2.627 billion for the twelve months of 2022.

    The $66.8 million increase in interest expense to $84.3 million for the twelve months of 2023, was a 381.8 percent increase from $17.5 million for the 2022 comparable period. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 214 basis points to 2.93 percent for the twelve months of 2023, from 0.79 percent for the twelve months of 2022, and an increase in the average balance of interest-bearing liabilities of $667.5 million, or 30.3 percent, to $2.873 billion from $2.206 billion over the same comparable periods. The increase in the average cost of funds primarily resulted from the high interest rate environment and an increase in the level of borrowed funds in the twelve months of 2023 compared to the same period in 2022.

    Net interest margin was 2.85 percent for the twelve months of 2023, compared to 3.78 percent for the twelve months of 2022. The decrease in the net interest margin compared to the prior period was the result of an increase in the average volume of interest-bearing liabilities as well as an increase in the cost of interest-bearing liabilities.

    During the twelve months of 2023, the Company recognized $704,000 in net-charge offs compared to $1.7 million in net-charge offs for the same period in 2022.

    Non-interest income increased by $2.5 million to $4.1 million for the twelve months of 2023 from $1.6 million for the twelve months of 2022. The improvement in total non-interest income was mainly related to a $2.9 million decrease in the realized and unrealized losses on equity securities. The realized and unrealized losses on equity securities are based on market conditions.

    Non-interest expense increased by $5.1 million, or 9.2 percent, to $60.6 million for the twelve months of 2023 from $55.5 million for the same period in 2022. The increase in operating expenses for 2023 was driven primarily by an increase in salaries and employee benefits, an increase in regulatory assessments, and higher data processing expenses. The 2023 salaries and benefits expense included the payment to Mr. Coughlin described above.

    The income tax provision decreased by $5.5 million or 31.7 percent, to $12.0 million for the twelve months of 2023 from $17.5 million for the same period in 2022. The decrease in the income tax provision was a result of the lower taxable income for the twelve months ended December 31, 2023 compared to the same period in 2022. The consolidated effective tax rate was 28.9 percent for the twelve months of 2023 compared to 27.8 percent for the twelve months of 2022.

    Asset Quality

    The Bank had non-accrual loans totaling $18.8 million, or 0.57 percent, of gross loans at December 31, 2023, as compared to $5.1 million, or 0.17 percent, of gross loans at December 31, 2022. The allowance for credit losses was $33.6 million, or 1.01 percent of gross loans at December 31, 2023, and $32.4 million, or 1.05 percent of gross loans at December 31, 2022. The allowance for credit losses was 178.9 percent of non-accrual loans at December 31, 2023, and 633.6 percent of non-accrual loans at December 31, 2022.

    About BCB Bancorp, Inc.

    Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has twenty-four branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branches in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.

    Forward-Looking Statements

    This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

    The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity and capital in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the Federal Reserve. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability to effectively attract and deploy deposits; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levels and slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios; the credit risk associated with our loan portfolio; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in our ability to access cost-effective funding; deposit flows; legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, rates and regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in the securities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to retain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatory requirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere in this report, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, in Part II, Item 1A of our quarterly reports on Form 10-Q, and our other periodic reports that we file with the SEC.

    Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

    Explanation of Non-GAAP Financial Measures

    Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s financial results for the periods in question.

    The Company provides measurements and ratios based on tangible stockholders' equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

    Contact:
    Michael Shriner,
    President & CEO
    Jawad Chaudhry,
    EVP & CFO
    (201) 823-0700




     Statements of Income - Three Months Ended,   
     December 31, 2023September 30, 2023December 31, 2022Dec 31, 2023 vs.
    Sept 30, 2023    		 Dec 31, 2023 vs.
    Dec 31, 2022
    Interest and dividend income: (In thousands, except per share amounts, Unaudited)   
       Loans, including fees$ 43,893$ 44,133 $ 36,173 -0.5% 21.3%
       Mortgage-backed securities 293 217  185 35.0% 58.4%
       Other investment securities 991 1,045  1,177 -5.2% -15.8%
       FHLB stock and other interest-earning assets 4,527 3,672  1,321 23.3% 242.7%
         Total interest and dividend income 49,704 49,067  38,856 1.3% 27.9%
           
    Interest expense:      
    Deposits:      
       Demand 5,015 4,556  2,410 10.1% 108.1%
       Savings and club 177 182  118 -2.7% 50.0%
       Certificates of deposit 13,308 10,922  3,973 21.8% 235.0%
      18,500 15,660  6,501 18.1% 184.6%
       Borrowings 7,282 7,727  2,174 -5.8% 235.0%
           Total interest expense 25,782 23,387  8,675 10.2% 197.2%
           
    Net interest income 23,922 25,680  30,181 -6.8% -20.7%
    Provision (benefit) for credit losses 1,927 2,205  (500)-12.6% -485.4%
           
    Net interest income after provision (benefit) for credit losses 21,995 23,475  30,681 -6.3% -28.3%
           
    Non-interest income (loss):      
       Fees and service charges 1,445 1,349  1,138 7.1% 27.0%
       Gain on sales of loans 11 19  3 -42.1% 266.7%
       Gain on sale of other real estate owned 77 -  - -  - 
       Realized and unrealized gain (loss) on equity investments 1,029 (494) (723)-308.3% -242.3%
       BOLI income 597 466  584 28.1% 2.2%
       Other 69 66  60 4.5% 15.0%
          Total non-interest income 3,228 1,406  1,062 129.6% 204.0%
           
    Non-interest expense:       
       Salaries and employee benefits 7,974 7,524  7,626 6.0% 4.6%
       Occupancy and equipment 2,606 2,622  2,651 -0.6% -1.7%
       Data processing and communications 1,721 1,787  1,579 -3.7% 9.0%
       Professional fees 987 560  2,169 76.3% -54.5%
       Director fees 274 274  261 0.0% 5.0%
       Regulatory assessment fees 1,142 1,111  431 2.8% 165.0%
       Advertising and promotions 403 317  260 27.1% 55.0%
       Other real estate owned, net 4 1  4 300.0% 0.0%
       Other 1,457 1,267  1,056 15.0% 38.0%
          Total non-interest expense 16,568 15,463  16,037 7.1% 3.3%
           
    Income before income tax provision 8,655 9,418  15,706 -8.1% -44.9%
      Income tax provision 2,593 2,707  3,634 -4.2% -28.6%
           
    Net Income 6,062 6,711  12,072 -9.7% -49.8%
      Preferred stock dividends 182 173  172 5.2% 5.6%
    Net Income available to common stockholders$ 5,880$ 6,538 $ 11,900 -10.1% -50.6%
           
    Net Income per common share-basic and diluted      
      Basic$ 0.35$ 0.39 $ 0.70 -10.3% -50.5%
      Diluted$ 0.35$ 0.39 $ 0.69 -10.2% -49.4%
           
    Weighted average number of common shares outstanding      
      Basic 16,876 16,830  16,916 0.3% -0.2%
      Diluted 16,884 16,854  17,289 0.2% -2.3%
           



     Statements of Income - Twelve Months Ended, 
     December 31, 2023December 31, 2022Dec 31, 2023 vs.
    Dec 31, 2022
    Interest and dividend income: (In thousands, except per share amounts, Unaudited) 
      Loans, including fees$ 169,559 $ 123,577 37.2%
      Mortgage-backed securities 880  564 56.0%
      Other investment securities 4,226  4,167 1.4%
      FHLB stock and other interest-earning assets 13,695  3,133 337.1%
         Total interest and dividend income 188,360  131,441 43.3%
        
    Interest expense:   
      Deposits:   
        Demand 16,915  5,283 220.2%
        Savings and club 620  449 38.1%
        Certificates of deposit 39,157  6,889 468.4%
      56,692  12,621 349.2%
      Borrowings 27,606  4,875 466.3%
           Total interest expense 84,298  17,496 381.8%
        
    Net interest income 104,062  113,945 -8.7%
      Provision (benefit) for credit losses 6,104  (3,075)-298.5%
        
    Net interest income after provision (benefit) for credit losses 97,958  117,020 -16.3%
        
    Non-interest income:   
      Fees and service charges 5,334  4,816 10.8%
      Gain on sales of loans 36  129 -72.1%
      Gain on sales of other real estate owned 77  - - 
      Realized and unrealized loss on equity investments (3,361) (6,269)-46.4%
      BOLI income 1,751  2,671 -34.4%
      Other 251  248 1.2%
          Total non-interest income 4,088  1,595 156.3%
        
    Non-interest expense:    
      Salaries and employee benefits 30,827  28,021 10.0%
      Occupancy and equipment 10,340  10,627 -2.7%
      Data processing and communications 6,968  6,033 15.5%
      Professional fees 2,735  3,766 -27.4%
      Director fees 1,083  1,253 -13.6%
      Regulatory assessments 3,585  1,243 188.4%
      Advertising and promotions 1,348  941 43.3%
      Other real estate owned, net 7  10 -30.0%
      Other 3,698  3,611 2.4%
          Total non-interest expense 60,591  55,505 9.2%
        
    Income before income tax provision 41,455  63,110 -34.3%
      Income tax provision 11,972  17,531 -31.7%
        
    Net Income 29,483  45,579 -35.3%
      Preferred stock dividends 702  796 -11.9%
    Net Income available to common stockholders$ 28,781 $ 44,783 -35.7%
        
    Net Income per common share-basic and diluted   
      Basic$ 1.71 $ 2.64 -35.4%
      Diluted$ 1.70 $ 2.58 -34.1%
        
    Weighted average number of common shares outstanding   
      Basic 16,870  16,969 -0.6%
      Diluted 16,932  17,349 -2.4%
        



    Statements of Financial ConditionDecember 31, 2023September 30, 2023December 31, 2022December 31, 2023 vs. September 30, 2023December 31, 2023 vs. December 31, 2022
    ASSETS         (In Thousands, Unaudited)  
    Cash and amounts due from depository institutions$ 16,597 $ 16,772 $ 11,520 -1.0%44.1%
    Interest-earning deposits 262,926  235,144  217,839 11.8%20.7%
       Total cash and cash equivalents 279,523  251,916  229,359 11.0%21.9%
          
    Interest-earning time deposits 735  735  735 - - 
    Debt securities available for sale 87,769  86,172  91,715 1.9%-4.3%
    Equity investments 9,093  8,272  17,686 9.9%-48.6%
    Loans held for sale 1,287  472  658 172.7%95.6%
    Loans receivable, net of allowance for credit losses     
       of $33,608, $31,914 and $32,373, respectively 3,279,708  3,285,727  3,045,331 -0.18%7.70%
    Federal Home Loan Bank of New York stock, at cost 24,917  31,629  20,113 -21.2%23.9%
    Premises and equipment, net 13,057  13,363  10,508 -2.3%24.3%
    Accrued interest receivable 16,072  16,175  13,455 -0.6%19.5%
    Other real estate owned -  75  75 -100%-100%
    Deferred income taxes 18,213  16,749  16,462 8.7%10.6%
    Goodwill and other intangibles 5,253  5,288  5,382 -0.7%-2.4%
    Operating lease right-of-use asset 12,935  12,953  13,520 -0.1%-4.3%
    Bank-owned life insurance ("BOLI") 73,406  72,810  71,656 0.8%2.4%
    Other assets 10,429  9,784  9,538 6.6%9.3%
        Total Assets$ 3,832,397 $ 3,812,120 $ 3,546,193 0.5%8.1%
          
    LIABILITIES AND STOCKHOLDERS' EQUITY     
          
    LIABILITIES     
    Non-interest bearing deposits$ 536,264 $ 523,912 $ 613,910 2.4%-12.6%
    Interest bearing deposits 2,442,816  2,295,644  2,197,697 6.4%11.2%
      Total deposits 2,979,080  2,819,556  2,811,607 5.7%6.0%
    FHLB advances 472,811  622,674  382,261 -24.1%23.7%
    Subordinated debentures 37,624  37,624  37,508 0.0%0.3%
    Operating lease liability 13,315  13,318  13,859 -0.0%-3.9%
    Other liabilities 15,512  15,312  9,704 1.3%59.9%
        Total Liabilities  3,518,342  3,508,484  3,254,939 0.3%8.1%
          
    STOCKHOLDERS' EQUITY     
    Preferred stock: $0.01 par value, 10,000 shares authorized -  -  - - - 
    Additional paid-in capital preferred stock 25,043  20,783  21,003 20.5%19.2%
    Common stock: no par value, 40,000 shares authorized -  -  - 0.0%0.0%
    Additional paid-in capital common stock 198,923  198,097  196,164 0.4%1.4%
    Retained earnings 135,927  132,729  115,109 2.4%18.1%
    Accumulated other comprehensive loss (7,491) (9,626) (6,491)-22.2%15.4%
    Treasury stock, at cost (38,347) (38,347) (34,531)0.0%11.1%
        Total Stockholders' Equity 314,055  303,636  291,254 3.4%7.8%
          
         Total Liabilities and Stockholders' Equity$ 3,832,397 $ 3,812,120 $ 3,546,193 0.5%8.1%
          
    Outstanding common shares 16,848  16,848  16,931   
          



     Three Months Ended December 31,
      2023   2022 
     Average BalanceInterest Earned/PaidAverage Yield/Rate (3) Average BalanceInterest Earned/PaidAverage Yield/Rate (3)
     (Dollars in thousands)
    Interest-earning assets:       
    Loans Receivable (4)(5)$ 3,311,946$ 43,8935.30% $2,939,281$36,1734.92%
    Investment Securities 93,638 12845.48%  110,142 1,3624.95%
    FHLB stock and other interest-earning assets 323,064 4,5275.61%  157,807 1,3213.35%
       Total Interest-earning assets 3,728,648 49,7045.33%  3,207,230 38,8564.85%
    Non-interest-earning assets 124,809    110,701  
       Total assets$ 3,853,457   $3,317,931  
    Interest-bearing liabilities:       
    Interest-bearing demand accounts$ 578,890$ 2,1841.51% $729,160$1,2950.71%
    Money market accounts 359,366 2,8323.15%  345,343 1,1141.29%
    Savings accounts 288,108 1770.25%  334,394 1180.14%
    Certificates of Deposit 1,140,656 13,3074.67%  734,216 3,9742.17%
       Total interest-bearing deposits 2,367,020 18,5003.13%  2,143,112 6,5011.21%
    Borrowed funds 622,860 7,2824.68%  239,252 2,1743.63%
       Total interest-bearing liabilities 2,989,880 25,7823.45%  2,382,364 8,6751.46%
    Non-interest-bearing liabilities 557,156    651,408  
       Total liabilities 3,547,036    3,033,772  
    Stockholders' equity 306,420    284,159  
       Total liabilities and stockholders' equity$ 3,853,457   $3,317,931  
    Net interest income $ 23,922   $30,181 
    Net interest rate spread(1)  1.88%   3.39%
    Net interest margin(2)  2.57%   3.76%
            
    (1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
    (2) Net interest margin represents net interest income divided by average total interest-earning assets.
    (3) Annualized.
    (4) Excludes allowance for credit losses.
    (5) Includes non-accrual loans.
            



     Year Ended December 31,
      2023   2022 
     Average BalanceInterest Earned/PaidAverage Yield/Rate (3) Average BalanceInterest Earned/PaidAverage Yield/Rate (3)
     (Dollars in thousands)
    Interest-earning assets:       
    Loans Receivable (4)(5)$ 3,281,334$ 169,559 5.17% $2,626,710$123,577 4.70%
    Investment Securities 100,000 5,106 5.11%  109,604 4,731 4.32%
    FHLB stock and other interest-earning assets 270,659 13,695 5.06%  274,649 3,133 1.14%
       Total Interest-earning assets 3,651,993 188,360 5.16%  3,010,963 131,441 4.37%
    Non-interest-earning assets 123,652    106,712  
       Total assets$ 3,775,645   $3,117,675  
    Interest-bearing liabilities:       
    Interest-bearing demand accounts$ 658,023$ 8,426 1.28% $751,708$2,970 0.40%
    Money market accounts 334,353 8,489 2.54%  350,207 2,313 0.66%
    Savings accounts 305,778 620 0.20%  340,232 449 0.13%
    Certificates of Deposit 980,617 39,157 3.99%  614,346 6,889 1.12%
       Total interest-bearing deposits 2,278,771 56,692 2.49%  2,056,494 12,621 0.61%
    Borrowed funds 594,564 27,606 4.64%  149,354 4,875 3.26%
       Total interest-bearing liabilities 2,873,335 84,298 2.93%  2,205,848 17,496 0.79%
    Non-interest-bearing liabilities 602,691    636,216  
       Total liabilities 3,476,026    2,842,064  
    Stockholders' equity 299,618    275,611  
       Total liabilities and stockholders' equity$ 3,775,644   $3,117,675  
    Net interest income $ 104,062    $113,945  
    Net interest rate spread(1)  2.22%   3.57%
    Net interest margin(2)  2.85%   3.78%
            
    (1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
    (2) Net interest margin represents net interest income divided by average total interest-earning assets.
    (3) Annualized.
    (4) Excludes allowance for credit losses.
    (5) Includes non-accrual loans.
            



     Financial Condition data by quarter
     Q4 2023Q3 2023Q2 2023Q1 2023Q4 2022
          
     (In thousands, except book values)
    Total assets$3,832,397 $3,812,120 $3,872,853 $3,763,056 $3,546,193 
    Cash and cash equivalents 279,523  251,916  273,212  261,075  229,359 
    Securities 96,862  94,444  100,473  101,446  109,401 
    Loans receivable, net 3,279,708  3,285,727  3,319,721  3,231,864  3,045,331 
    Deposits 2,979,080  2,819,556  2,885,721  2,867,209  2,811,607 
    Borrowings 510,435  660,298  660,160  569,965  419,769 
    Stockholders’ equity 314,055  303,636  299,623  297,618  291,254 
    Book value per common share1$17.15 $16.79 $16.60 $16.38 $15.96 
    Tangible book value per common share2$16.84 $16.48 $16.28 $16.07 $15.65 
          
     Operating data by quarter
     Q4 2023Q3 2023Q2 2023Q1 2023Q4 2022
     (In thousands, except for per share amounts)
    Net interest income$23,922 $25,680 $26,989 $27,471 $30,181 
    Provision (benefit) for credit losses 1,927  2,205  1,350  622  (500)
    Non-interest income (loss) 3,228  1,406  1,118  (1,664) 1,062 
    Non-interest expense 16,568  15,463  14,706  13,854  16,037 
    Income tax expense 2,593  2,707  3,447  3,225  3,634 
    Net income$6,062 $6,711 $8,604 $8,106 $12,072 
    Net income per diluted share$0.35 $0.39 $0.50 $0.46 $0.69 
    Common Dividends declared per share$0.16 $0.16 $0.16 $0.16 $0.16 
          
     Financial Ratios(3)
     Q4 2023Q3 2023Q2 2023Q1 2023Q4 2022
    Return on average assets 0.63% 0.70% 0.90% 0.90% 1.46%
    Return on average stockholders' equity 7.91% 8.92% 11.57% 11.05% 16.99%
    Net interest margin 2.57% 2.78% 2.92% 3.15% 3.76%
    Stockholders' equity to total assets 8.19% 7.97% 7.74% 7.91% 8.21%
    Efficiency Ratio4 61.02% 57.09% 52.32% 53.68% 51.33%
          
     Asset Quality Ratios
     Q4 2023Q3 2023Q2 2023Q1 2023Q4 2022
     (In thousands, except for ratio %)
    Non-Accrual Loans$18,783 $7,931 $5,696 $5,058 $5,109 
    Non-Accrual Loans as a % of Total Loans 0.57% 0.24% 0.17% 0.16% 0.17%
    ACL as % of Non-Accrual Loans 178.9% 402.4% 530.3% 571.0% 633.6%
    Individually Analyzed Loans 54,019  35,868  28,250  17,585  28,272 
    Classified Loans 85,727  42,807  28,250  17,585  17,816 
          
    (1) Calculated by dividing stockholders' equity, less preferred equity, to shares outstanding.  
    (2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’
    common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”
    (3) Ratios are presented on an annualized basis, where appropriate.   
    (4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income
     and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.” 
          



     Recorded Investment in Loans Receivable by quarter
     Q4 2023Q3 2023Q2 2023Q1 2023Q4 2022
     (In thousands)
    Residential one-to-four family$248,295 $251,845 $250,345 $246,683 $250,123 
    Commercial and multi-family 2,434,115  2,444,887  2,490,883  2,466,932  2,345,229 
    Construction 192,816  185,202  179,156  162,553  144,931 
    Commercial business 372,202  370,512  368,948  327,598  282,007 
    Home equity 66,331  66,046  61,595  58,822  56,888 
    Consumer 3,643  3,647  3,994  3,383  3,240 
     $3,317,402 $3,322,139 $3,354,921 $3,265,971 $3,082,418 
    Less:     
       Deferred loan fees, net (4,086) (4,498) (4,995) (5,225) (4,714)
       Allowance for credit losses (33,608) (31,914) (30,205) (28,882) (32,373)
          
    Total loans, net$3,279,708 $3,285,727 $3,319,721 $3,231,864 $3,045,331 
          
     Non-Accruing Loans in Portfolio by quarter
     Q4 2023Q3 2023Q2 2023Q1 2023Q4 2022
     (In thousands)
    Residential one-to-four family$270 $178 $178 $237 $243 
    Commercial and multi-family 8,684  3,267  -  340  346 
    Construction 4,292  2,886  4,145  3,217  3,180 
    Commercial business 5,491  1,600  1,373  1,264  1,340 
    Home equity 46  -  -  -  - 
    Total:$18,783 $7,931 $5,696 $5,058 $5,109 
          
     Distribution of Deposits by quarter
     Q4 2023Q3 2023Q2 2023Q1 2023Q4 2022
     (In thousands)
    Demand:     
       Non-Interest Bearing$536,264 $523,912 $620,509 $604,935 $613,910 
       Interest Bearing 564,912  574,577  714,420  686,576  757,614 
       Money Market 370,934  348,732  328,543  361,558  305,556 
    Sub-total:$1,472,110 $1,447,221 $1,663,472 $1,653,069 $1,677,080 
       Savings and Club 284,273  293,962  307,435  319,131  329,753 
       Certificates of Deposit 1,222,697  1,078,373  914,814  895,009  804,774 
    Total Deposits:$2,979,080 $2,819,556 $2,885,721 $2,867,209 $2,811,607 
          



     Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
          
     Tangible Book Value per Share
     Q4 2023Q3 2023Q2 2023Q1 2023Q4 2022
     (In thousands, except per share amounts)
    Total Stockholders' Equity$314,055 $303,636 $299,623 $297,618 $291,254 
    Less: goodwill 5,253  5,253  5,253  5,253  5,253 
    Less: preferred stock 25,043  20,783  21,003  21,003  21,003 
    Total tangible common stockholders' equity 283,759  277,601  273,368  271,363  264,999 
    Shares common shares outstanding 16,848  16,848  16,788  16,884  16,931 
    Book value per common share$17.15 $16.79 $16.60 $16.38 $15.96 
    Tangible book value per common share$16.84 $16.48 $16.28 $16.07 $15.65 
          
     Efficiency Ratios
     Q4 2023Q3 2023Q2 2023Q1 2023Q4 2022
     (In thousands, except for ratio %)
    Net interest income$23,922 $25,680 $26,989 $27,471 $30,181 
    Non-interest income (loss) 3,228  1,406  1,118  (1,664) 1,062 
    Total income 27,150  27,086  28,107  25,807  31,243 
    Non-interest expense 16,568  15,463  14,706  13,854  16,037 
    Efficiency Ratio 61.02% 57.09% 52.32% 53.68% 51.33%
          

     


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