• BCB Bancorp, Inc. Earns $6.7 Million in Third Quarter 2023; Reports $0.39 EPS and Declares Quarterly Cash Dividend of $0.16 Per Share

    المصدر: Nasdaq GlobeNewswire / 19 أكتوبر 2023 07:30:01   America/Chicago

    BAYONNE, N.J., Oct. 19, 2023 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $6.7 million for the third quarter of 2023, compared to $8.6 million in the second quarter of 2023, and $13.4 million for the third quarter of 2022. Earnings per diluted share for the third quarter of 2023 were $0.39, compared to $0.50 in the preceding quarter and $0.76 in the third quarter of 2022. Net income and earnings per diluted share for the third quarter of 2023, adjusted for the unrealized losses on equity investments, were $7.1 million and $0.41, respectively.

    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 November 17, 2023 to common shareholders of record on November 3, 2023.

    “We remain profitable with a favorable asset quality profile and solid liquidity and capital levels. The persistently high interest rate environment with a bias for staying elevated continues to adversely impact the availability and the pricing of liquidity for the banking industry. We have intentionally slowed down the growth of our balance sheet, as we are very focused on protecting our profitability, liquidity and capital position in an uncertain economic environment,” stated Thomas Coughlin, President and Chief Executive Officer.

    “Our asset quality remains strong and our non-accrual loans to total loans ratio was 0.24 percent at September 30, 2023, compared to 0.17 percent at June 30, 2023, and 0.30 percent a year ago. We adopted the CECL methodology commencing January 1, 2023 and under the new methodology, we recorded a loan loss provision of $2.21 million during the third quarter of 2023 compared to $1.35 million during the preceding quarter,” said Mr. Coughlin.

    Executive Summary

    • Total deposits were $2.820 billion at September 30, 2023 compared to $2.886 billion at June 30, 2023.
    • Net interest margin was 2.78 percent for the third quarter of 2023, compared to 2.92 percent for the second quarter of 2023, and 4.18 percent for the third quarter of 2022.
      • Total yield on interest-earning assets increased 20 basis points to 5.31 percent for the third quarter of 2023, compared to 5.11 percent for the second quarter of 2023, and increased 67 basis points from 4.64 percent for the third quarter of 2022.
      • Total cost of interest-bearing liabilities increased 37 basis points to 3.17 percent for the third quarter of 2023, compared to 2.80 percent for the second quarter of 2023, and increased 253 basis points from 0.64 percent for the third quarter of 2022.
    • The efficiency ratio for the third quarter was 57.1 percent compared to 52.3 percent in the prior quarter, and 41.5 percent in the third quarter of 2022.
    • The annualized return on average assets ratio for the third quarter was 0.70 percent, compared to 0.90 percent in the prior quarter, and 1.74 percent in the third quarter of 2022.
    • The annualized return on average equity ratio for the third quarter was 8.9 percent, compared to 11.6 percent in the prior quarter, and 19.4 percent in the third quarter of 2022.
    • The provision for credit losses was $2.21 million in the third quarter of 2023 compared to $1.35 million for the second quarter and no provision for the third quarter of 2022.
    • The allowance for credit losses (“ACL”) as a percentage of non-accrual loans was 402.4 percent at September 30, 2023, compared to 530.3 percent for the prior quarter-end and 390.3 percent at September 30, 2022. The total non-accrual loans were $7.93 million at September 30, 2023, $5.70 million at June 30, 2023 and $8.51 million at September 30, 2022.
    • Total loans receivable, net of the allowance for credit losses, increased 17.9 percent to $3.286 billion at September 30, 2023, up from $2.787 billion at September 30, 2022, but down 1.0% from $3.320 billion at June 30, 2023.

    Balance Sheet Review

    Total assets increased by $265.9 million, or 7.5 percent, to $3.812 billion at September 30, 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 $22.5 million, or 9.8 percent, to $251.9 million at September 30, 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 $240.4 million, or 7.9 percent, to $3.286 billion at September 30, 2023, from $3.045 billion at December 31, 2022. Total loan increases during 2023 included increases of $99.7 million in commercial real estate and multi-family loans, $88.5 million in commercial business loans, $40.3 million in construction loans, $1.7 million in residential one-to-four family loans and $9.6 million in home equity and consumer loans. The allowance for credit losses decreased $459,000 to $31.9 million, or 402.4 percent of non-accruing loans and 0.96 percent of gross loans, at September 30, 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. Upon adoption of the CECL methodology, the Day One CECL adjustment resulted in a $4.2 million reduction to our ACL.

    Total investment securities decreased by $15.0 million, or 13.7 percent, to $94.4 million at September 30, 2023, from $109.4 million at December 31, 2022, representing unrealized losses, calls and maturities, and repayments.

    Deposit liabilities increased by $7.9 million, or 0.3 percent, to $2.820 billion at September 30, 2023, from $2.812 billion at December 31, 2022. Certificates of deposits and money market accounts increased $273.6 million and $43.2 million, offset by interest bearing demand, non-interest bearing and savings and club accounts which declined $308.9 million during the first nine months of 2023.

    Debt obligations increased by $240.5 million to $660.3 million at September 30, 2023 from $419.8 million at December 31, 2022. The weighted average interest rate of FHLB advances was 4.45 percent at September 30, 2023 and 4.07 percent at December 31, 2022. The weighted average maturity of FHLB advances as of September 30, 2023 was 1.71 years. The interest rate of our subordinated debt balances was 8.35 percent at September 30, 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 $12.4 million, or 4.3 percent, to $303.6 million at September 30, 2023, from $291.3 million at December 31, 2022. The increase was primarily attributable to the increase in retained earnings of $17.6 million, or 15.3 percent, to $132.7 million at September 30, 2023 from $115.1 million at December 31, 2022 partially offset by the $3.1 million increase in accumulated other comprehensive loss during the first nine months of 2023.

    Third Quarter 2023 Income Statement Review

    Net income was $6.7 million for the third quarter ended September 30, 2023 and $13.4 million for the third quarter ended September 30, 2022. The decline was primarily driven by lower net interest income, higher credit loss provisioning and higher non-interest expenses for the third quarter of 2023 as compared with the third quarter of 2022.

    Net interest income decreased by $5.3 million, or 17.0 percent, to $25.7 million for the third quarter of 2023, from $31.0 million for the third 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 $14.7 million, or 42.6 percent, to $49.1 million for the third quarter of 2023 from $34.4 million for the third quarter of 2022. The average balance of interest-earning assets increased $732.9 million, or 24.7 percent, to $3.698 billion for the third quarter of 2023 from $2.965 billion for the third quarter of 2022, while the average yield increased 67 basis points to 5.31 percent for the third quarter of 2023 from 4.64 percent for the third quarter of 2022.

    Interest expense increased by $19.9 million to $23.4 million for the third quarter of 2023 from $3.4 million for the third quarter of 2022. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 253 basis points to 3.17 percent for the third quarter of 2023 from 0.64 percent for the third quarter of 2022, while the average balance of interest-bearing liabilities increased by $791.0 million to $2.947 billion for the third quarter of 2023 from $2.156 billion for the third 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 2.78 percent for the third quarter of 2023 compared to 4.18 percent for the third quarter of 2022. The decrease in the net interest margin compared to the third 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 third quarter of 2023, the Company experienced $496,000 in net charge-offs compared to $918,000 in net charge offs in the third quarter of 2022. The Bank had non-accrual loans totaling $7.93 million, or 0.24 percent of gross loans, at September 30, 2023 as compared to $8.51 million, or 0.30 percent of gross loans, at September 30, 2022. The allowance for credit losses on loans was $31.9 million, or 0.96 percent of gross loans at September 30, 2023, and $33.2 million, or 1.18 percent of gross loans at September 30, 2022. The provision for credit losses was $2.21 million for the third quarter of 2023 compared to no provisioning for loan losses for the third quarter of 2022. Management believes that the allowance for credit losses on loans was adequate at September 30, 2023 and September 30, 2022.

    Non-interest income decreased by $40,000 to $1.41 million for the third quarter of 2023 from $1.45 million for third quarter of 2022. The decrease in total non-interest income was mainly related to the decrease in BOLI income of $180,000. This was offset by fees and service charges increasing by $98,000.

    Non-interest expense increased by $2.0 million, or 14.9 percent, to $15.5 million for the third quarter of 2023 from $13.5 million for the third quarter of 2022. The increase in operating expenses for the third quarter of 2023 was primarily driven by higher regulatory assessment charges, higher salaries and employee benefits, and increased data processing expenses compared to the third quarter of 2022. The number of full-time equivalent employees for the third quarter of 2023 was 296, as compared to 301 for the same period in 2022.

    The income tax provision decreased by $2.8 million, or 51.2 percent, to $2.7 million for the third quarter of 2023 from $5.6 million for the third quarter of 2022. The consolidated effective tax rate was 28.7 percent for the third quarter of 2023 compared to 29.3 percent for the third quarter of 2022.

    Year-to-Date Income Statement Review

    Net income decreased by $10.1 million, or 30.1 percent, to $23.4 million for the first nine months of 2023 from $33.5 million for the first nine months of 2022. The decrease in net income was driven primarily by a higher loan loss provision and an increase in operating expenses for 2023 as compared to 2022.

    Net interest income decreased by $3.6 million, or 4.3 percent, to $80.1 million for the first nine months of 2023 from $83.8 million for the first nine months of 2022. The decrease in net interest income resulted from a $49.7 million increase in interest expense, offset by an increase of $46.1 million in interest income.

    The $46.1 million increase in interest income to $138.7 million for the first nine months of 2023, was a 49.8 percent increase from $92.6 million for the first nine months of 2022. The average balance of interest-earning assets increased $681.3 million, or 23.1 percent, to $3.626 billion for the first nine months of 2023, from $2.945 billion for the first nine months of 2022, while the average yield increased 91 basis points to 5.10 percent from 4.19 percent for the same comparable period. The increase in the average balance of interest-earning assets mainly related to an increase in the level of average loans receivable for the first nine months of 2023, as compared to the same period in 2022.  

    The increase in interest income mainly related to an increase in the average balance of loans receivable of $749.6 million to $3.271 billion for the first nine months of 2023, from $2.521 billion for the first nine months of 2022.

    The $49.7 million increase in interest expense to $58.5 million for the first nine months of 2023, was a 563.4 percent increase from $8.8 million for the 2022 comparable period. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 220 basis points to 2.75 percent for the first nine months of 2023, from 0.55 percent for the first nine months of 2022, and an increase in the average balance of interest-bearing liabilities of $687.7 million, or 32.0 percent, to $2.834 billion from $2.146 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 first nine months of 2023 compared to the same period in 2022.

    Net interest margin was 2.95 percent for the first nine months of 2023, compared to 3.79 percent for the first nine 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 first nine months of 2023, the Company experienced $471,000 in net charge offs compared to $1.3 million in net charge offs for the same period in 2022.The Bank had non-accrual loans totaling $7.93 million, or 0.24 percent, of gross loans at September 30, 2023 as compared to $8.51 million, or 0.30 percent of gross loans at September 30, 2022. The allowance for credit losses was $31.9 million, or 0.96 percent of gross loans at September 30, 2023, and $33.2 million, or 1.18 percent of gross loans at September 30, 2022. The provision for credit losses was $4.2 million for the first nine months of 2023 compared to a credit to the provision for loan losses of $2.6 million for the same period in 2022. Management believes that the allowance for credit losses was adequate at September 30, 2023 and September 30, 2022.

    Non-interest income increased by $327,000 to $860,000 for the first nine months of 2023 from $533,000 for the first nine months of 2022. The improvement in total noninterest income was mainly related to a decrease of $1.2 million in the realized and unrealized losses on equity securities, partially offset by a decrease of $933,000 in BOLI income. The realized and unrealized losses on equity securities are based on market conditions.

    Non-interest expense increased by $4.6 million, or 11.5 percent, to $44.0 million for the first nine months of 2023 from $39.5 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 number of full-time equivalent employees for the period ended September 30, 2023 was 300, as compared with 302 for the same period in 2022.

    The income tax provision decreased by $4.5 million or 32.5 percent, to $9.4 million for the first nine months of 2023 from $13.9 million for the same period in 2022. The decrease in the income tax provision was a result of the lower taxable income for the nine months ended September 30, 2023 compared to the same period in 2022. The consolidated effective tax rate was 28.6 percent for the first nine months of 2023 compared to 29.3 percent for the first nine months of 2022.

    Asset Quality

    The Bank had non-accrual loans totaling $7.93 million, or 0.24 percent, of gross loans at September 30, 2023, as compared to $5.1 million, or 0.17 percent, of gross loans at December 31, 2022. The allowance for credit losses was $31.9 million, or 0.96 percent of gross loans at September 30, 2023, and $32.4 million, or 1.05 percent of gross loans at December 31, 2022. The allowance for credit losses was 402.4 percent of non-accrual loans at September 30, 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 24 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 factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations; our ability to manage liquidity in a rapidly changing and unpredictable market; supply chain disruptions, labor shortages; and additional interest rate increases by the Federal Reserve. Other factors that could cause actual results to differ materially from forward-looking statements or historical performance: the inability to close loans in our pipeline; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; supply chain disruptions; any future pandemics and the related adverse local and national economic consequences; civil unrest in the communities that the company serves; customer acceptance of the Bank’s products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; economic conditions; the impact, extent and timing of technological changes, capital management activities, actions of governmental agencies and legislative and regulatory actions and reforms, other factors discussed elsewhere in this release, 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 for the year-ended December 31, 2022, and in Part II, Item 1A of our quarterly report on Form 10-Q for the quarter-ended March 31, 2023, 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.

         
     Statements of Income - Three Months Ended,   
     September 30, 2023June 30, 2023September 30, 2022September 30, 2023 vs. June 30, 2023 September 30, 2023 vs. September 30, 2022
    Interest and dividend income: (In thousands, except per share amounts, Unaudited)   
    Loans, including fees$ 44,133 $ 42,644 $ 32,302 3.5% 36.6%
    Mortgage-backed securities 217  184  173 17.9% 25.4%
    Other investment securities 1,045  1,070  1,103 -2.3% -5.3%
    FHLB stock and other interest earning assets 3,672  3,339  822 10.0% 346.7%
    Total interest and dividend income 49,067  47,237  34,400 3.9% 42.6%
           
    Interest expense:      
    Deposits:      
    Demand 4,556  4,190  1,169 8.7% 289.7%
    Savings and club 182  143  113 27.3% 61.1%
    Certificates of deposit 10,922  8,474  1,087 28.9% 904.8%
      15,660  12,807  2,369 22.3% 561.0%
    Borrowings 7,727  7,441  1,080 3.8% 615.5%
    Total interest expense 23,387  20,248  3,449 15.5% 578.1%
           
    Net interest income 25,680  26,989  30,951 -4.9% -17.0%
    Provision for credit losses 2,205  1,350  - 63.3% - 
           
    Net interest income after provision for credit losses 23,475  25,639  30,951 -8.4% -24.2%
           
    Non-interest income (loss):      
    Fees and service charges 1,349  1,442  1,251 -6.4% 7.8%
    Gain on sales of loans 19  -  18 -  5.6%
    Realized and unrealized loss on equity investments (494) (669) (559)-26.2% -11.6%
    BOLI income 466  267  646 74.5% -27.9%
    Other 66  78  90 -15.4% -26.7%
    Total non-interest income (loss) 1,406  1,118  1,446 25.8% -2.8%
           
    Non-interest expense:       
    Salaries and employee benefits 7,524  7,711  6,944 -2.4% 8.4%
    Occupancy and equipment 2,622  2,560  2,608 2.4% 0.5%
    Data processing and communications 1,787  1,795  1,520 -0.4% 17.6%
    Professional fees 560  622  614 -10.0% -8.8%
    Director fees 274  270  375 1.5% -26.9%
    Regulatory assessment fees 1,111  796  264 39.6% 320.8%
    Advertising and promotions 317  350  286 -9.4% 10.8%
    Other real estate owned, net 1  1  1 0.0% 0.0%
    Other 1,267  601  841 110.8% 50.7%
    Total non-interest expense 15,463  14,706  13,453 5.1% 14.9%
           
    Income before income tax provision 9,418  12,051  18,944 -21.8% -50.3%
    Income tax provision 2,707  3,447  5,552 -21.5% -51.2%
           
    Net Income 6,711  8,604  13,392 -22.0% -49.9%
    Preferred stock dividends 173  174  174 -0.7% -0.6%
    Net Income available to common stockholders$ 6,538 $ 8,430 $ 13,218 -22.4% -50.5%
           
    Net Income per common share-basic and diluted      
    Basic$ 0.39 $ 0.50 $ 0.78 -22.5% -50.1%
    Diluted$ 0.39 $ 0.50 $ 0.76 -22.5% -49.1%
           
    Weighted average number of common shares outstanding      
    Basic 16,830  16,824  16,997 0.0% -1.0%
    Diluted 16,854  16,831  17,404 0.1% -3.2%
           


     Statements of Income - Nine Months Ended,  
     September 30, 2023September 30, 2022September 30, 2023 vs. September 30, 2022 
    Interest and dividend income: (In thousands, except per share amounts, Unaudited)  
    Loans, including fees$ 125,666 $ 87,404 43.8% 
    Mortgage-backed securities 587  379 54.9% 
    Other investment securities 3,235  2,990 8.2% 
    FHLB stock and other interest earning assets 9,168  1,812 406.0% 
    Total interest and dividend income 138,656  92,585 49.8% 
         
    Interest expense:    
    Deposits:    
    Demand 11,900  2,873 314.2% 
    Savings and club 443  331 33.8% 
    Certificates of deposit 25,849  2,916 786.5% 
      38,192  6,120 524.1% 
    Borrowings 20,324  2,701 652.5% 
    Total interest expense 58,516  8,821 563.4% 
         
    Net interest income 80,140  83,764 -4.3% 
    Provision (benefit) for credit losses 4,177  (2,575)-262.2% 
         
    Net interest income after provision (benefit) for credit losses 75,963  86,339 -12.0% 
         
    Non-interest income (loss):    
    Fees and service charges 3,889  3,678 5.7% 
    Gain on sales of loans 25  126 -80.2% 
    Realized and unrealized loss on equity investments (4,390) (5,546)-20.8% 
    BOLI income 1,154  2,087 -44.7% 
    Other 182  188 -3.2% 
    Total non-interest loss 860  533 61.4% 
         
    Non-interest expense:     
    Salaries and employee benefits 22,853  20,395 12.1% 
    Occupancy and equipment 7,734  7,976 -3.0% 
    Data processing and communications 5,247  4,454 17.8% 
    Professional fees 1,748  1,597 9.5% 
    Director fees 809  992 -18.4% 
    Regulatory assessments 2,443  812 200.9% 
    Advertising and promotions 945  681 38.8% 
    Other real estate owned, net 3  6 -50.0% 
    Other 2,241  2,555 -12.3% 
    Total non-interest expense 44,023  39,468 11.5% 
         
    Income before income tax provision 32,800  47,404 -30.8% 
    Income tax provision 9,379  13,897 -32.5% 
         
    Net Income 23,421  33,507 -30.1% 
    Preferred stock dividends 520  624 -16.7% 
    Net Income available to common stockholders$ 22,901 $ 32,883 -30.4% 
         
    Net Income per common share-basic and diluted    
    Basic$ 1.36 $ 1.94 -29.9% 
    Diluted$ 1.35 $ 1.89 -28.6% 
         
    Weighted average number of common shares outstanding    
    Basic 16,868  16,986 -0.7% 
    Diluted 16,951  17,369 -2.4% 
         


    Statements of Financial ConditionSeptember 30, 2023June 30, 2023December 31, 2022September 30, 2023 vs. June 30, 2023September 30, 2023 vs. December 31,2022
    ASSETS(In Thousands, Unaudited)  
    Cash and amounts due from depository institutions$ 16,772 $ 13,378 $ 11,520 25.4%45.6%
    Interest-earning deposits 235,144  259,834  217,839 -9.5%7.9%
    Total cash and cash equivalents 251,916  273,212  229,359 -7.8%9.8%
          
    Interest-earning time deposits 735  735  735 - - 
    Debt securities available for sale 86,172  87,648  91,715 -1.7%-6.0%
    Equity investments 8,272  12,825  17,686 -35.5%-53.2%
    Loans held for sale 472  -  658 - -28.3%
    Loans receivable, net of allowance for credit losses     
    of $31,914, $30,205 and $32,373, respectively 3,285,727  3,319,721  3,045,331 -1.02%7.89%
    Federal Home Loan Bank of New York stock, at cost 31,629  31,667  20,113 -0.1%57.3%
    Premises and equipment, net 13,363  13,561  10,508 -1.5%27.2%
    Accrued interest receivable 16,175  15,384  13,455 5.1%20.2%
    Other real estate owned 75  75  75 - - 
    Deferred income taxes 16,749  16,445  16,462 1.8%1.7%
    Goodwill and other intangibles 5,288  5,324  5,382 -0.7%-1.7%
    Operating lease right-of-use asset 12,953  13,658  13,520 -5.2%-4.2%
    Bank-owned life insurance (“BOLI”) 72,809  72,344  71,656 0.6%1.6%
    Other assets 9,785  10,254  9,538 -4.6%2.6%
    Total Assets$ 3,812,120 $ 3,872,853 $ 3,546,193 -1.6%7.5%
          
    LIABILITIES AND STOCKHOLDERS’ EQUITY     
          
    LIABILITIES     
    Non-interest bearing deposits$ 523,912 $ 620,509 $ 613,910 -15.6%-14.7%
    Interest bearing deposits 2,295,644  2,265,212  2,197,697 1.3%4.5%
    Total deposits 2,819,556  2,885,721  2,811,607 -2.3%0.3%
    FHLB advances 622,674  622,536  382,261 0.0%62.9%
    Subordinated debentures 37,624  37,624  37,508 0.0%0.3%
    Operating lease liability 13,318  14,003  13,859 -4.9%-3.9%
    Other liabilities 15,312  13,346  9,704 14.7%57.8%
    Total Liabilities 3,508,484  3,573,230  3,254,939 -1.8%7.8%
          
    STOCKHOLDERS’ EQUITY     
    Preferred stock: $0.01 par value, 10,000 shares authorized -  -  -   
    Additional paid-in capital preferred stock 20,783  21,003  21,003 -1.0%-1.0%
    Common stock: no par value, 40,000 shares authorized -  -  - 0.0%0.0%
    Additional paid-in capital common stock 198,097  197,521  196,164 0.3%1.0%
    Retained earnings 132,729  128,867  115,109 3.0%15.3%
    Accumulated other comprehensive loss (9,626) (9,421) (6,491)2.2%48.3%
    Treasury stock, at cost (38,347) (38,347) (34,531)0.0%11.1%
    Total Stockholders’ Equity 303,636  299,623  291,254 1.3%4.3%
          
    Total Liabilities and Stockholders’ Equity$ 3,812,120 $ 3,872,853 $ 3,546,193 -1.6%7.5%
          
    Outstanding common shares 16,848  16,788  16,931   
          


     Three Months Ended September 30,2023
     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)$ 3,330,446 $ 44,1335.30% $2,699,093$32,3024.79%
    Investment Securities 96,723  12625.22%  112,172 1,2764.55%
    FHLB stock and other interest-earning assets 270,729  3,6725.43%  153,705 8222.14%
    Total Interest-earning assets 3,697,898  49,0675.31%  2,964,970 34,4004.64%
    Non-interest-earning assets 127,780     106,750  
    Total assets$ 3,825,678    $3,071,720  
    Interest-bearing liabilities:       
    Interest-bearing demand accounts$ 628,804 $ 2,2441.43% $774,870$7070.36%
    Money market accounts 331,813  2,3112.79%  353,821 4620.52%
    Savings accounts 300,484  1820.24%  343,515 1130.13%
    Certificates of Deposit 1,024,900  10,9234.26%  545,293 1,0870.80%
    Total interest-bearing deposits 2,286,001  15,6602.74%  2,017,500 2,3690.47%
    Borrowed funds 660,773  7,7274.68%  138,314 1,0803.12%
    Total interest-bearing liabilities 2,946,774  23,3873.17%  2,155,813 3,4490.64%
    Non-interest-bearing liabilities 577,963     640,102  
    Total liabilities 3,524,737     2,795,916  
    Stockholders’ equity 300,941     275,804  
    Total liabilities and stockholders’ equity$ 3,825,678    $3,071,720  
    Net interest income $ 25,680   $30,951 
    Net interest rate spread(1)  2.13%   4.00%
    Net interest margin(2)  2.78%   4.18%
            
    (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 which are immaterial to the yield.
            


     Nine Months Ended September 30,
     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)$ 3,271,018$ 125,6665.12% $2,521,375$87,4044.62%
    Investment Securities 102,143 3,8224.99%  109,422 3,3694.11%
    FHLB stock and other interest-earning assets 252,999 9,1684.83%  314,024 1,8120.77%
       Total Interest-earning assets 3,626,161 138,6565.10%  2,944,821 92,5854.19%
    Non-interest-earning assets 123,262    105,368  
       Total assets$ 3,749,422   $3,050,189  
    Interest-bearing liabilities:       
    Interest-bearing demand accounts$ 684,691$ 6,2421.22% $759,307$1,6740.29%
    Money market accounts 325,923 5,6572.31%  351,846 1,1990.45%
    Savings accounts 311,733 4430.19%  342,199 3310.13%
    Certificates of Deposit 926,684 25,8493.72%  573,951 2,9150.68%
       Total interest-bearing deposits 2,249,032 38,1922.26%  2,027,303 6,1200.40%
    Borrowed funds 585,028 20,3244.63%  119,059 2,7013.02%
       Total interest-bearing liabilities 2,834,060 58,5162.75%  2,146,362 8,8210.71%
    Non-interest-bearing liabilities 618,037    631,097  
       Total liabilities 3,452,097    2,777,459  
    Stockholders’ equity 297,326    272,730  
       Total liabilities and stockholders’ equity$ 3,749,422   $3,050,189  
    Net interest income $ 80,140   $83,764 
    Net interest rate spread(1)  2.35%   3.64%
    Net interest margin(2)  2.95%   3.79%
            
    (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)     Presented on an annualized basis, where appropriate.
    (4)     Excludes allowance for loan losses.
    (5)     Includes non-accrual loans which are immaterial to the yield.
            


     Financial Condition data by quarter 
      Q3 2023  Q2 2023  Q1 2023  Q4 2022  Q3 2022  
     (In thousands, except book values) 
    Total assets$3,812,120 $3,872,853 $3,763,056 $3,546,193 $3,265,612  
    Cash and cash equivalents 251,916  273,212  261,075  229,359  221,024  
    Securities 94,444  100,473  101,446  109,401  111,159  
    Loans receivable, net 3,285,727  3,319,721  3,231,864  3,045,331  2,787,015  
    Deposits 2,819,556  2,885,721  2,867,209  2,811,607  2,712,946  
    Borrowings 660,298  660,160  569,965  419,769  249,573  
    Stockholders’ equity 303,636  299,623  297,618  291,254  282,682  
    Book value per common share1$16.79 $16.60 $16.38 $15.96 $15.42  
    Tangible book value per common share2$16.48 $16.28 $16.07 $15.65 $15.11  
                     
     Operating data by quarter 
      Q3 2023  Q2 2023  Q1 2023  Q4 2022  Q3 2022  
     (In thousands, except for per share amounts) 
    Net interest income$25,680 $26,989 $27,471 $30,181 $30,951  
    Provision (benefit) for credit losses 2,205  1,350  622  (500) -  
    Non-interest income (loss) 1,406  1,118  (1,664) 1,062  1,446  
    Non-interest expense 15,463  14,706  13,854  16,037  13,453  
    Income tax expense 2,707  3,447  3,225  3,634  5,552  
    Net income$6,711 $8,604 $8,106 $12,072 $13,392  
    Net income per diluted share$0.39 $0.50 $0.46 $0.69 $0.76  
    Common Dividends declared per share$0.16 $0.16 $0.16 $0.16 $0.16  
                     
     Financial Ratios(3) 
      Q3 2023  Q2 2023  Q1 2023  Q4 2022  Q3 2022  
    Return on average assets 0.70% 0.90% 0.90% 1.46% 1.74% 
    Return on average stockholders’ equity 8.92% 11.57% 11.05% 16.99% 19.42% 
    Net interest margin 2.78% 2.92% 3.15% 3.76% 4.18% 
    Stockholders’ equity to total assets 7.97% 7.74% 7.91% 8.21% 8.66% 
    Efficiency Ratio4 57.09% 52.32% 53.68% 51.33% 41.53% 
                     
     Asset Quality Ratios 
      Q3 2023  Q2 2023  Q1 2023  Q4 2022  Q3 2022  
     (In thousands, except for ratio %) 
    Non-Accrual Loans$7,931 $5,696 $5,058 $5,109 $8,505  
    Non-Accrual Loans as a % of Total Loans 0.24% 0.17% 0.16% 0.17% 0.30% 
    ACL as % of Non-Accrual Loans 402.4% 530.3% 571.0% 633.6% 390.3% 
    Individually Analyzed Loans 35,868  28,250  17,585  28,272  40,524  
    Classified Loans 42,807  28,250  17,585  17,816  30,180  
             
    (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 
      Q3 2023  Q2 2023  Q1 2023  Q4 2022  Q3 2022  
     (In thousands) 
    Residential one-to-four family$251,845 $250,345 $246,683 $250,123 $242,238  
    Commercial and multi-family 2,444,887  2,490,883  2,466,932  2,345,229  2,164,320  
    Construction 185,202  179,156  162,553  144,931  153,103  
    Commercial business 370,512  368,948  327,598  282,007  205,661  
    Home equity 66,046  61,595  58,822  56,888  56,064  
    Consumer 3,647  3,994  3,383  3,240  2,545  
     $3,322,139 $3,354,921 $3,265,971 $3,082,418 $2,823,931  
    Less:        
       Deferred loan fees, net (4,498) (4,995) (5,225) (4,714) (3,721) 
       Allowance for credit losses (31,914) (30,205) (28,882) (32,373) (33,195) 
             
    Total loans, net$3,285,727 $3,319,721 $3,231,864 $3,045,331 $2,787,015  
           
     Non-Accruing Loans in Portfolio by quarter 
      Q3 2023  Q2 2023  Q1 2023  Q4 2022  Q3 2022  
     (In thousands) 
    Residential one-to-four family$178 $178 $237 $243 $263  
    Commercial and multi-family 3,267  -  340  346  757  
    Construction 2,886  4,145  3,217  3,180  3,180  
    Commercial business 1,600  1,373  1,264  1,340  4,305  
    Home equity -  -  -  -  -  
    Total:$7,931 $5,696 $5,058 $5,109 $8,505  
           
     Distribution of Deposits by quarter
    		 
      Q3 2023  Q2 2023  Q1 2023  Q4 2022  Q3 2022  
     (In thousands)
    		 
    Demand:                
       Non-Interest Bearing$523,912 $620,509 $604,935 $613,910 $610,425  
       Interest Bearing 574,577  714,420  686,576  757,614  726,012  
       Money Market 348,732  328,543  361,558  305,556  370,353  
    Sub-total:$1,447,221 $1,663,472 $1,653,069 $1,677,080 $1,706,790  
       Savings and Club 293,962  307,435  319,131  329,753  338,864  
       Certificates of Deposit 1,078,373  914,814  895,009  804,774  667,291  
    Total Deposits:$2,819,556 $2,885,721 $2,867,209 $2,811,607 $2,712,945  
          


     Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
    		 
           
     Tangible Book Value per Share
    		 
     Q3 2023
    		Q2 2023
    		Q1 2023
    		Q4 2022
    		Q3 2022
    		 
     (In thousands, except per share amounts) 
    Total Stockholders’ Equity$303,636 $299,623 $297,618 $291,254 $282,682  
    Less: goodwill 5,252  5,252  5,252  5,252  5,252  
    Less: preferred stock 20,783  21,003  21,003  21,003  21,003  
    Total tangible common stockholders’ equity 277,601  273,368  271,363  264,999  256,427  
    Shares common shares outstanding 16,848  16,788  16,884  16,931  16,974  
    Book value per common share$16.79 $16.60 $16.38 $15.96 $15.42  
    Tangible book value per common share$16.48 $16.28 $16.07 $15.65 $15.11  
                     
     Efficiency Ratios
    		 
     Q3 2023
    		Q2 2023
    		Q1 2023
    		Q4 2022
    		Q3 2022
    		 
     (In thousands, except for ratio %) 
    Net interest income$25,680 $26,989 $27,471 $30,181 $30,951  
    Non-interest income (loss) 1,406  1,118  (1,664) 1,062  1,446  
    Total income 27,086  28,107  25,807  31,243  32,397  
    Non-interest expense 15,463  14,706  13,854  16,037  13,453  
    Efficiency Ratio 57.09%  52.32%  53.68%  51.33%  41.53%  


    CONTACT:THOMAS COUGHLIN
     PRESIDENT & CEO
     JAWAD CHAUDHRY, CFO
     (201) 823-0700

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