• BCB Bancorp, Inc. Reports Net Income of $13.4 Million in Third Quarter 2022; Net Loans Increase 20.9 Percent YTD and NIM Expands to 4.18 Percent; Declares Quarterly Cash Dividend of $0.16 Per Share

    المصدر: Nasdaq GlobeNewswire / 20 أكتوبر 2022 07:30:01   America/Chicago

    BAYONNE, N.J., Oct. 20, 2022 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported that net income increased $5.1 million, or 60.9 percent, to $13.4 million for the third quarter of 2022, compared with $8.3 million for the third quarter of 2021, and increased 31.8 percent compared to $10.2 million in the immediate prior quarter. Earnings per diluted share for the third quarter of 2022 were $0.76, compared to $0.58 in the preceding quarter and $0.47 in the third quarter of 2021.

    For the first nine months of the year, net income increased 42.6 percent to $33.5 million, compared to $23.5 million for the first nine months of 2021. Year-to-date, earnings per diluted share were $1.89 compared to $1.31 for the first nine months of 2021.

    The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable November 15, 2022 to common shareholders of record on November 1, 2022.

    “We delivered record earnings for the third quarter, highlighted by strong loan production, net interest margin expansion, and prudent expense management. We remain committed to maintaining a stable liquidity profile in an increasingly competitive rate environment while closely monitoring and protecting our future net interest margin,” stated Thomas Coughlin, President and Chief Executive Officer. 

    “Additionally, our asset quality remains strong and is reflective of the disciplined underwriting and credit culture of our organization. We continue to see robust loan demand that is indicative of our customers’ desire to continue to bank with us as their lender of choice. We are also very well-positioned to benefit from the market disruptions caused by recent regional mergers. However, we are being mindful of the headwinds posed by the rising rate environment and the broader macroeconomic conditions as we pursue future growth initiatives.”

    “Due to the continued, solid performance of our asset quality metrics, we recorded no loan loss provision during the third quarter of 2022. Our non-accrual loans to total loans ratio decreased to 0.30 percent at September 30, 2022, from 0.35 percent at June 30, 2022, and 0.89 percent a year ago,” said Mr. Coughlin.

    “During the third quarter, we completed a third round private placement of our Series I Noncumulative Perpetual Preferred Stock. Over the last ten months, we issued a total of $10.0 million of such stock over three rounds of funding. As a result of these strategic transactions, we have further strengthened our capital position,” concluded Mr. Coughlin.

    Executive Summary

    • Net income was $13.4 million in the third quarter of 2022, compared to $10.2 million in the prior quarter, and $8.3 million in the third quarter a year ago.
    • Earnings per diluted share were $0.76 in the third quarter of 2022, compared to $0.58 in the prior quarter, and $0.47 in the third quarter of 2021.
    • Net interest margin was 4.18 percent for the third quarter of 2022, a 44 basis point increase compared to 3.74 percent for the second quarter of 2022, and a 72 basis point increase compared to 3.46 percent for the third quarter of 2021.
      • Total cost of interest-bearing liabilities increased 14 basis points to 0.64 percent for the third quarter of 2022, compared to 0.50 percent for the second quarter of 2022, and decreased two basis points from 0.66 percent for the third quarter of 2021.
      • The interest rate spread increased by 40 basis points to 4.00 percent for the third quarter of 2022, compared to 3.60 percent for the second quarter of 2022, and increased 71 basis points from 3.29 percent for the third quarter of 2021.
    • The efficiency ratio for the third quarter was 41.5 percent compared to 47.6 percent in the prior quarter, and 52.2 percent in the third quarter of 2021.
    • The annualized return on average assets ratio for the third quarter was 1.74 percent, compared to 1.32 percent in the prior quarter, and 1.13 percent in the third quarter of 2021.
    • The annualized return on average equity ratio for the third quarter was 19.4 percent, compared to 15.0 percent in the prior quarter, and 12.8 percent in the third quarter of 2021.
    • The Company had no provision for loan losses for the third quarter or the second quarter of 2022. This compared to a $680,000 provision for loan losses for the third quarter of 2021.
    • Allowance for loan losses as a percentage of non-accrual loans was 390.3 percent at September 30, 2022, compared to 370.7 percent for the prior quarter, and 184.1 percent at September 30, 2021.
    • Total non-accrual loans decreased to $8.5 million at September 30, 2022, compared to $9.2 million at June 30, 2022, and $20.7 million at September 30, 2021.
    • Total loans receivable, net of allowance for loan losses, increased 21.7 percent to $2.787 billion at September 30, 2022, from $2.290 billion at September 30, 2021.
    • Total deposits increased 6.7 percent to $2.713 billion at September 30, 2022, up from $2.541 billion at September 30, 2021, with noninterest bearing deposits increasing 12.1 percent over a year ago.
    • The Company’s Board of Directors declared a regular quarterly cash dividend of $0.16 per share, payable November 15, 2022 to common shareholders of record November 1, 2022.

    Balance Sheet Review

    Total assets increased by $298.1 million, or 10.0 percent, to $3.266 billion at September 30, 2022, from $2.968 billion at December 31, 2021. The increase in total assets was mainly related to increases in total loans partially offset by decreases in cash and cash equivalents.

    Total cash and cash equivalents decreased by $190.6 million, or 46.3 percent, to $221.0 million at September 30, 2022, from $411.6 million at December 31, 2021. This decrease was primarily due to an increase in loans, partly offset by an increase in deposits.

    Loans receivable, gross, increased by $479.9 million, or 20.5 percent, to $2.824 billion at September 30, 2022, from $2.344 billion at December 31, 2021. Total loan increases for the first nine months of 2022 included increases of $444.1 million in commercial real estate and multi-family loans, $17.7 million in residential one-to-four family loans, $14.5 million in commercial business loans, and $5.6 million in home equity loans, , partly offset by decreases of $1.2 million in consumer loans, and $801,000 in construction loans. The allowance for loan losses decreased $3.9 million to $33.2 million, or 390.3 percent of non-accruing loans and 1.18 percent of gross loans, at September 30, 2022, as compared to an allowance for loan losses of $37.1 million, or 249.3 percent of non-accruing loans and 1.58 percent of gross loans, at December 31, 2021.

    Total investment securities increased by $786,000, or 0.7 percent, to $111.2 million at September 30, 2022, from $110.4 million at December 31, 2021, representing repayments, calls and maturities, and purchases of $15.5 million, partly offset by sales of $1.2 million.

    Deposit liabilities increased by $151.5 million, or 5.9 percent, to $2.713 billion at September 30, 2022, from $2.561 billion at December 31, 2021. Total increases for the nine months ended September 30, 2022, included $57.7 million in NOW deposit accounts, $33.2 million in money market checking accounts, $29.2 million in certificates of deposit, including listing service and brokered deposit accounts, $22.2 million in non-interest-bearing deposit accounts, and $9.1 million in savings and club accounts. The weighted average interest rate of certificates of deposit was 0.70 percent at September 30, 2022 and 0.72 percent at December 31, 2021.

    Debt obligations increased by $140.6 million to $249.6 million at September 30, 2022, from $109.0 million at December 31, 2021, and consisted of both Federal Home Loan Bank (“FHLB”) borrowings and subordinated debt balances. The increase in debt obligations related to short-term FHLB borrowings. The weighted average interest rate of FHLB advances was 2.63 percent at September 30, 2022, and 1.39 percent at December 31, 2021. The fixed interest rate of our subordinated debt balances was 5.625 percent at September 30, 2022, and at December 31, 2021.

    Stockholders’ equity increased by $8.7 million, or 3.2 percent, to $282.7 million at September 30, 2022, from $274.0 million at December 31, 2021. The increase was primarily attributable to an increase in retained earnings of $24.7 million, or 30.5 percent, to $105.9 million at September 30, 2022, from $81.2 million at December 31, 2021, related to the net effect of net income less dividends paid for the nine months ended September 30, 2022. The increase was partly offset by a decrease of $7.9 million in additional paid-in-capital for preferred stock, an increase in accumulated other comprehensive losses of $7.3 million, and an increase in treasury stock of $2.0 million. The decrease in additional paid-in-capital for preferred stock was primarily related to the redemption of $9.4 million of the Company’s then-outstanding Series D 4.5 percent preferred stock and $5.3 million of the Company’s then-outstanding Series G 6.0 percent preferred stock, partially offset by the issuance of $6.8 million of Series I 3.0 percent preferred stock. The decrease in accumulated other comprehensive income over the prior year was based upon unfavorable market conditions related to the Company’s available-for-sale debt securities.

    Third Quarter 2022 Income Statement Review

    Net interest income increased by $6.3 million, or 25.8 percent, to $30.9 million for the third quarter of 2022, from $24.6 million for the third quarter of 2021. The increase in net interest income resulted from a $6.3 million increase in interest income as well as a decrease of $82,000 in interest expense.

    Interest income increased by $6.3 million, or 22.2 percent, to $34.4 million for the third quarter of 2022, from $28.1 million for the third quarter of 2021. The average balance of interest-earning assets increased $116.1 million, or 4.1 percent, to $2.965 billion for the third quarter of 2022, from $2.849 billion for the third quarter of 2021, while the average yield increased 69 basis points to 4.64 percent for the third quarter of 2022, from 3.95 percent for the third quarter of 2021. The increase in the average balance of interest-earning assets mainly related to an increase in the Company’s level of average loans receivable for the third quarter of 2022, as compared to the third quarter of 2021.

    The increase in interest income mainly related to an increase in the average balance of loans receivable of $358.4 million to $2.699 billion for the third quarter of 2022, from $2.341 billion for the third quarter of 2021. The increase in the average balance of loans receivable was the result the of the strength of the Company’s loan pipeline. Interest income on loans also included $314,000 of amortization of purchase credit fair value adjustments for the third quarter of 2022 related to a prior acquisition, which added approximately four basis points to the average yield on interest earning assets.

    Interest expense decreased by $82,000, or 2.3 percent, to $3.4 million for the third quarter of 2022, from $3.5 million for the third quarter of 2021. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 2 basis points to 0.64 percent for the third quarter of 2022, from 0.66 percent for the third quarter of 2021, partly offset by an increase in the average balance of interest-bearing liabilities of $12.7 million, or 0.6 percent, to $2.156 billion for the third quarter of 2022, from $2.143 billion for the third quarter of 2021. The decrease in the average cost of funds primarily resulted from the Company’s focus on managing funding costs.

    Net interest margin was 4.18 percent for the third quarter of 2022, compared to 3.46 percent for the third quarter of 2021. The increase in the net interest margin was largely the result of an increase in the average volume and average rate on loans receivable. and to a much lesser extent to a decrease in funding costs, partly offset by an increase in the average balance of interest-bearing liabilities.

    The Company’s overall asset quality is trending favorably with continued reduction in non-accrual loans.  A review of the existing level of loan loss reserves and the asset quality resulted in no provision for loan losses for the third quarter of 2022. This compared to a $680,000 provision for loan losses during the third quarter of 2021. During the third quarter of 2022, the Company experienced $918,000 in net charge-offs compared to net recoveries of $4,000 for the third quarter of 2021. The Bank had non-accrual loans totaling $8.5 million, or 0.30 percent of gross loans at September 30, 2022, as compared to $20.7 million, or 0.89 percent of gross loans at September 30, 2021. The allowance for loan losses was $33.2 million, or 1.18 percent of gross loans at September 30, 2022, and $38.2 million, or 1.64 percent of gross loans at September 30, 2021.

    Noninterest income increased by $129,000, or 9.8 percent, to $1.4 million for the third quarter of 2022, from $1.3 million in income for the third quarter of 2021. The increase in total noninterest income was mainly related to an increase in fees and service charges and other non-interest income, partly offset by an increase in the loss on equity securities, a decrease in BOLI income, and a decrease in the gain on the sale of loans. Fees and service charge income increased by $538,000, or 75.5 percent, to $1.3 million for the third quarter of 2022, compared to $713,000 for the third quarter of 2021. Fees and service charge income include revenue from loan servicing fees, ATM fees, and other customer account fees. The loss on equity securities for the third quarter of 2022 was $559,000 compared to an unrealized loss of $307,000 for the third quarter 2021. The increase in losses on equity securities was due to the rising rate environment.

    Noninterest expense decreased by $75,000, or 0.6 percent, to $13.5 million for the third quarter of 2022, from $13.5 million for the third quarter of 2021. The decrease was mainly related to a decrease in occupancy and debt extinguishment expenses, as well as other non-interest expense. The Company recognized an expense of $337,000 for a loss on extinguishment of debt related to the prepayment of higher-cost FHLB borrowings in the third quarter of 2021. There was no comparable expense in the third quarter of 2022. The decrease in other non-interest expense mainly related to a decrease in loan-related legal expenses. Salaries and employee benefits expense increased by $433,000, or 6.7 percent, to $6.9 million for the third quarter of 2022, from $6.5 million for the third quarter of 2021. The increase mainly related to an increase in the number of fulltime equivalent employees to 301 for the third quarter of 2022, compared to 291 for the same period in 2021.

    The income tax provision increased by $2.2 million, or 63.3 percent, to $5.6 million for the third quarter of 2022, from $3.4 million for the third quarter of 2021. The increase in the income tax provision was a result of higher taxable income for the third quarter of 2022, as compared with that same period for 2021. The consolidated effective tax rate for the third quarter of 2022 was 29.3 percent compared to 29.0 percent for the third quarter of 2021.

    Year-to-Date 2022 Income Statement Review

    Net interest income increased by $11.5 million, or 16.0 percent, to $83.8 million for the first nine months of 2022, from $72.2 million for the first nine months of 2021. The increase in net interest income resulted from an increase of $8.4 million in total interest income as well as a decrease of $3.2 million in total interest expense.

    Interest income increased by $8.4 million, or 9.9 percent, to $92.6 million for the first nine months of 2022, from $84.2 million for the first nine months of 2021. The average balance of interest-earning assets increased $168.9 million, or 6.1 percent, to $2.945 billion for the first nine months of 2022, from $2.776 billion for the first nine months of 2021, while the average yield increased 14 basis points to 4.19 percent for the first nine months of 2022, from 4.05 percent for the first nine months of 2021. The increase in the average balance of interest-earning assets mainly related to an increase in the Company’s level of average loans receivable for the first nine months of 2022, as compared to the first nine months of 2021.

    The increase in interest income mainly related to an increase in the average balance of loans receivable of $184.4 million to $2.521 billion for the first nine months of 2022, from $2.337 billion for the first nine months of 2021. The increase in the average balance on loans receivable was result of the strength of the Company’s loan pipeline. Interest income on loans for the first nine months of 2022 also included $622,000 of amortization of purchase credit fair value adjustments related to a prior acquisition, which added approximately three basis points to the average yield on interest earning assets.

    Interest expense decreased by $3.2 million, or 26.4 percent, to $8.8 million for the first nine months of 2022, from $12.0 million for the first nine months of 2021. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 4 basis points to 0.71 percent for the first nine months of 2022, from 0.75 percent for the first nine months of 2021, partly offset by an increase in the average balance of interest-bearing liabilities of $15.6 million, or 0.7 percent, to $2.146 billion for the first nine months of 2022, from $2.131 billion for the first nine months of 2021. The decrease in the average cost of funds primarily resulted from the low interest rate environment in 2021 and the Company’s focus on managing funding costs.

    Net interest margin was 3.79 percent for the first nine months of 2022, compared to 3.47 percent for the first nine months of 2021. The increase in the net interest margin compared to the first nine months of 2021 was the result of an increase in the average volume of loans receivable as well as a decrease in funding costs.

    The Company recorded a credit to the provision for loan losses of $2.6 million for the first nine months of 2022, compared to a $4.8 million provision for loan losses for the first nine months of 2021. During the first nine months of 2022, the Company recorded $1.3 million in net charge offs compared to $323,000 in net charge offs for the first nine months of 2021.

    Noninterest income decreased by $5.6 million, or 91.2 percent, to $533,000 for the first nine months of 2022, from $6.1 million for third quarter of 2021. The decrease in total noninterest income was mainly related to an increase in the loss of equity securities, a lower gain on sales of loans, and a decrease in gains on the sale of premises, partly offset by an increase in fees and service charges. The loss on equity securities increased $5.5 million to $5.5 million for the first nine months of 2022, from a loss of $4,000 for the first nine months of 2021. The losses on equity securities are due to conditions. Gains on sales of loans decreased by $449,000, or 78.1 percent, to $126,000 for the first nine months of 2022, from $575,000 for the first nine months of 2021. Factors considered when deciding to sell loans include market conditions, demand, and the loan portfolio. Gains on the sale of premises sold were $371,000 for the first nine months of 2021 with no comparable gain or loss for the first nine months of 2022. These decreases were partly offset by an increase in fees and service charge income resulting from loan servicing income, ATM fees, and other customer account fees.

    Noninterest expense decreased by $800,000, or 2.0 percent, to $39.5 million for the first nine months of 2022, from $40.3 million for the first nine months of 2021. The decrease was mainly related to a decrease in debt extinguishment expense and other non-interest expense. The Company recognized an expense of $1.1 million for a loss on extinguishment of debt related to the prepayment of higher-cost FHLB borrowings in the first nine months of 2021. There was no comparable expense in the first nine months of 2022. Salaries and employee benefits expense increased by $827,000, or 4.2 percent, to $20.4 million for the first nine months of 2022, from $19.6 million for the first nine months of 2021. The increase mainly related to payments made to the estate of a former officer of the Company who passed away in 2022, pursuant to the terms of his employment agreement, and normal compensation increases. The number of full-time equivalent employees for the first nine months of 2022 was 302 compared to 297 for the same period of 2021.

    The income tax provision increased by $4.2 million, or 42.8 percent, to $13.9 million for the first nine months of 2022, from $9.7 million for the first nine months of 2021. The increase in the income tax provision was a result of higher taxable income for the first nine months of 2022, as compared with that same period for 2021. The consolidated effective tax rate for the first nine months of 2022 and 2021 was 29.3.

    Asset Quality

    The Bank had non-accrual loans totaling $8.5 million, or 0.30 percent of gross loans at September 30, 2022, as compared to $14.9 million, or 0.64 percent of gross loans at December 31, 2021 and $20.7 million, or 0.89 percent of gross loans at September 30, 2021. The allowance for loan losses was $33.2 million, or 1.18 percent of gross loans at September 30, 2022, $37.1 million or 1.58 percent of gross loans at December 31, 2021 and $38.2 million, or 1.64 percent of gross loans at September 30, 2021. The allowance for loan losses was 390.3 percent of non-accrual loans at September 30, 2022, 249.3 percent of non-accrual loans at December 31, 2021 and 184.1 percent of non-accrual loans at September 30, 2021.

    Performing troubled debt restructured (“TDR”) loans that were not included in non-accrual loans at September 30, 2022, were $10.5 million, compared to $12.4 million at December 31, 2021. Borrowers who are in financial difficulty and who have been granted concessions (excluding COVID-19 modifications) that may include interest rate reductions, term extensions, or payment alterations, are categorized as TDR loans.

    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 29 branch offices in Bayonne, Carteret, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and three 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.

    In addition to factors previously disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission (the "SEC") and those identified elsewhere in this release, the following factors, among others, 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; the COVID-19 pandemic or any similar future pandemic 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; and the impact, extent and timing of technological changes, capital management activities, and actions of governmental agencies and legislative and regulatory actions and reforms.

    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 30,2022June 30,2022September 30,2021September 30, 2022 vs. June 30, 2022 September 30, 2022 vs. September 30, 2021 
    Interest and dividend income: (In thousands, except per share amounts, Unaudited)    
    Loans, including fees$ 32,302 $ 28,781 $ 26,922 12.2% 20.0% 
    Mortgage-backed securities 173  47  159 268.1% 8.8% 
    Other investment securities 1,103  939  814 17.5% 35.5% 
    FHLB stock and other interest earning assets 822  694  249 18.4% 230.1% 
         Total interest and dividend income 34,400  30,461  28,144 12.9% 22.2% 
            
    Interest expense:       
    Deposits:       
    Demand 1,169  946  1,059 23.6% 10.4% 
    Savings and club 113  110  131 2.7% -13.7% 
    Certificates of deposit 1,087  849  1,344 28.0% -19.1% 
      2,369  1,905  2,534 24.4% -6.5% 
    Borrowings 1,080  815  997 32.5% 8.3% 
           Total interest expense 3,449  2,720  3,531 26.8% -2.3% 
            
    Net interest income 30,951  27,741  24,613 11.6% 25.8% 
    Provision (credit) for loan losses -  -  680   -100.0% 
            
    Net interest income after provision for loan losses 30,951  27,741  23,933 11.6% 29.3% 
            
    Non-interest income:       
    Fees and service charges 1,251  1,213  713 3.1% 75.5% 
    Gain on sales of loans 18  43  83 -58.1% -78.3% 
    Loss on sale of impaired loans  -  -     
    Gain on sale of other real estate owned  -  11   -100.0% 
    Realized and unrealized gain (loss) on equity investments (559) (2,302) (307)-75.7% 82.1% 
    BOLI income 646  686  765 -5.8% -15.6% 
    Other 90  47  52 91.5% 73.1% 
          Total non-interest income 1,446  (313) 1,317 562.0% 9.8% 
            
    Non-interest expense:       
    Salaries and employee benefits 6,944  6,715  6,511 3.4% 6.7% 
    Occupancy and equipment 2,608  2,673  2,983 -2.4% -12.6% 
    Data processing and communications 1,520  1,469  1,511 3.5% 0.6% 
    Professional fees 614  489  543 25.6% 13.1% 
    Director fees 375  296  233 26.7% 60.9% 
    Regulatory assessment fees 264  244  303 8.2% -12.9% 
    Advertising and promotions 286  254  200 12.6% 43.0% 
    Other real estate owned, net 1  4  (11)-75.0% -109.1% 
    Loss from extinguishment of debt -  -  337   -100.0% 
    Other 841  912  918 -7.8% -8.4% 
          Total non-interest expense 13,453  13,056  13,528 3.0% -0.6% 
            
    Income before income tax provision 18,944  14,372  11,722 31.8% 61.6% 
    Income tax provision 5,552  4,209  3,400 31.9% 63.3% 
            
    Net Income 13,392  10,163  8,322 31.8% 60.9% 
    Preferred stock dividends 174  138  286 26.1% -39.1% 
    Net Income available to common stockholders$ 13,218 $ 10,025 $ 8,036 31.9% 64.5% 
            
    Net Income per common share-basic and diluted       
    Basic$ 0.78 $ 0.59 $ 0.47 32.0% 65.6% 
    Diluted$ 0.76 $ 0.58 $ 0.47 32.2% 61.2% 
            
    Weighted average number of common shares outstanding       
    Basic 16,982  16,997  17,019 -0.1% -0.2% 
    Diluted 17,356  17,404  17,222 -0.3% 0.8% 
            

     



     Statements of Income - Nine Months Ended,  
     September 30,2022September 30, 2021September 30, 2022 vs. September 30, 2021 
    Interest and dividend income: (In thousands, except per share amounts, Unaudited)  
    Loans, including fees$ 87,404 $ 80,673 8.3% 
    Mortgage-backed securities 379  532 -28.8% 
    Other investment securities 2,990  2,345 27.5% 
    FHLB stock and other interest earning assets 1,812  673 169.2% 
         Total interest and dividend income 92,585  84,223 9.9% 
         
    Interest expense:    
    Deposits:    
    Demand 2,873  3,407 -15.7% 
    Savings and club 331  376 -12.0% 
    Certificates of deposit 2,916  4,975 -41.4% 
      6,120  8,758 -30.1% 
    Borrowings 2,701  3,226 -16.3% 
           Total interest expense 8,821  11,984 -26.4% 
         
    Net interest income 83,764  72,239 16.0% 
      Provision for loan losses (2,575) 4,840 -153.2% 
         
    Net interest income after provision for loan losses 86,339  67,399 28.1% 
         
    Non-interest income:    
    Fees and service charges 3,678  2,853 28.9% 
    Gain on sales of loans 126  575 -78.1% 
    (Loss) gain on sale of impaired loans -  (64)-100.0% 
    Gain on sales of other real estate owned -  11 -100.0% 
    Realized and unrealized gain on equity investments (5,546) (4)-  
    BOLI income 2,087  2,195 -4.9% 
    Gain on sale of premises -  371 -100.0% 
    Other 188  150 25.3% 
    Total non-interest income 533  6,087 -91.2% 
         
    Non-interest expense:    
    Salaries and employee benefits 20,395  19,568 4.2% 
    Occupancy and equipment 7,976  8,604 -7.3% 
    Data processing and communications 4,454  4,493 -0.9% 
    Professional fees 1,597  1,446 10.4% 
    Director fees 992  790 25.6% 
    Regulatory assessments 812  993 -18.2% 
    Advertising and promotions 681  392 73.7% 
    Other real estate owned, net 6  12 -50.0% 
    Loss from extinguishment of debt -  1,071 -100.0% 
    Other 2,555  2,899 -11.9% 
    Total non-interest expense 39,468  40,268 -2.0% 
         
    Income before income tax provision 47,404  33,218 42.7% 
    Income tax provision 13,897  9,729 42.8% 
         
    Net Income 33,507  23,489 42.6% 
    Preferred stock dividends 624  852 -26.8% 
    Net Income available to common stockholders$ 32,883 $ 22,637 45.3% 
         
    Net Income per common share-basic and diluted    
    Basic$ 1.94 $ 1.33 45.6% 
    Diluted$ 1.89 $ 1.31 44.5% 
         
    Weighted average number of common shares outstanding    
    Basic 16,986  17,085 -0.6% 
    Diluted 17,369  17,242 0.7% 
         



    Statements of Financial ConditionSeptember 30, 2022June 30, 2022September 30, 2021September 30, 2022 vs. June 30, 2022September 30, 2022 vs. September 30, 2021 
    ASSETS(In Thousands, Unaudited)   
    Cash and amounts due from depository institutions$ 11,192 $ 10,182 $ 8,569 9.9%30.6% 
    Interest-earning deposits 209,832  195,990  434,369 7.1%-51.7% 
    Total cash and cash equivalents 221,024  206,172  442,938 7.2%-50.1% 
           
    Interest-earning time deposits 735  735  735 - -  
    Debt securities available for sale 92,751  86,749  82,603 6.9%12.3% 
    Equity investments 18,408  18,968  23,534 -3.0%-21.8% 
    Loans held for sale -  5  913 -100.0%-100.0% 
    Loans receivable, net of allowance for loan losses of $33,195, $34,113 and $38,156, respectively 2,787,015  2,620,630  2,289,854 6.35%21.71% 
    Federal Home Loan Bank of New York stock, at cost 12,388  6,781  8,193 82.7%51.2% 
    Premises and equipment, net 10,723  11,075  12,998 -3.2%-17.5% 
    Accrued interest receivable 11,093  10,315  10,388 7.5%6.8% 
    Other real estate owned 75  75  - 0.0%  
    Deferred income taxes 15,863  13,583  13,515 16.8%17.4% 
    Goodwill and other intangibles 5,394  5,406  5,445 -0.2%-0.9% 
    Operating lease right-of-use asset 11,785  12,194  13,245 -3.4%-11.0% 
    Bank-owned life insurance ("BOLI") 71,072  70,426  71,728 0.9%-0.9% 
    Other assets 7,286  9,657  7,698 -24.6%-5.4% 
        Total Assets$ 3,265,612 $ 3,072,771 $ 2,983,787 6.3%9.4% 
           
    LIABILITIES AND STOCKHOLDERS' EQUITY      
           
    LIABILITIES      
    Non-interest bearing deposits$ 610,425 $ 595,167 $ 544,619 2.6%12.1% 
    Interest bearing deposits 2,102,521  2,059,863  1,996,786 2.1%5.3% 
    Total deposits 2,712,946  2,655,030  2,541,405 2.2%6.7% 
    FHLB advances 212,123  86,986  118,573 143.9%78.9% 
    Subordinated debentures 37,450  37,391  37,217 0.2%0.6% 
    Operating lease liability 12,102  12,496  13,533 -3.2%-10.6% 
    Other liabilities 8,309  9,231  9,978 -10.0%-16.7% 
        Total Liabilities  2,982,930  2,801,134  2,720,706 6.5%9.6% 
           
    STOCKHOLDERS' EQUITY      
    Preferred stock: $0.01 par value, 10,000 shares authorized -  -  -    
    Additional paid-in capital preferred stock 21,003  16,563  25,723 26.8%-18.3% 
    Common stock: no par value, 40,000 shares authorized -  -  -    
    Additional paid-in capital common stock 195,057  194,567  193,613 0.3%0.7% 
    Retained earnings 105,894  95,393  73,388 11.0%44.3% 
    Accumulated other comprehensive (loss) income (6,149) (2,997) (214)105.2%2773.4% 
    Treasury stock, at cost (33,123) (31,889) (29,429)3.9%12.6% 
        Total Stockholders' Equity 282,682  271,637  263,081 4.1%7.5% 
           
         Total Liabilities and Stockholders' Equity$ 3,265,612 $ 3,072,771 $ 2,983,787 6.3%9.4% 
           
    Outstanding common shares 16,974  16,960  17,036    
           



     Three Months Ended September 30,
      2022   2021 
     Average BalanceInterest Earned/PaidAverage Yield/Rate (3) Average BalanceInterest Earned/PaidAverage Yield/Rate (3)
     (Dollars in thousands)
    Interest-earning assets:       
    Loans Receivable (4)(5)$ 2,699,093$ 32,3024.79% $2,340,690$26,9224.60%
    Investment Securities 112,172 12764.55%  105,595 9733.69%
    FHLB stock and other interest-earning assets 153,705 8222.14%  402,617 2490.25%
    Total Interest-earning assets 2,964,970 34,4004.64%  2,848,903 28,1443.95%
    Non-interest-earning assets 106,750    105,399  
    Total assets$ 3,071,720   $2,954,302  
    Interest-bearing liabilities:       
    Interest-bearing demand accounts$ 774,870$ 7070.36% $638,812$6480.41%
    Money market accounts 353,821 4620.52%  344,142 4110.48%
    Savings accounts 343,515 1130.13%  321,783 1310.16%
    Certificates of Deposit 545,293 1,0870.80%  674,558 1,3440.80%
    Total interest-bearing deposits 2,017,500 2,3690.47%  1,979,294 2,5340.51%
    Borrowed funds 138,314 1,0803.12%  163,814 9972.43%
    Total interest-bearing liabilities 2,155,813 3,4490.64%  2,143,108 3,5310.66%
    Non-interest-bearing liabilities 640,102    551,938  
    Total liabilities 2,795,916    2,695,046  
    Stockholders' equity 275,804    259,255  
    Total liabilities and stockholders' equity$ 3,071,720   $2,954,301  
    Net interest income $ 30,951   $24,613 
    Net interest rate spread(1)  4.00%   3.29%
    Net interest margin(2)  4.18%   3.46%
            
    (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 loan losses.       
    (5)  Includes non-accrual loans which are immaterial to the yield     
            



     Nine Months Ended September 30,  
      2022   2021  
     Average BalanceInterest Earned/PaidAverage Yield/Rate (3) Average BalanceInterest Earned/PaidAverage Yield/Rate (3) 
     (Dollars in thousands) 
    Interest-earning assets:        
    Loans Receivable (4)(5)$ 2,521,375$ 87,4044.62% $2,336,950 $80,6734.60% 
    Investment Securities 109,422 3,3694.11%  108,492  2,8773.54% 
    FHLB stock and other interest-earning assets 314,024 1,8120.77%  330,500  6730.27% 
    Total Interest-earning assets 2,944,821 92,5854.19%  2,775,942  84,2234.05% 
    Non-interest-earning assets 105,368    107,319    
    Total assets$ 3,050,189   $2,883,261    
    Interest-bearing liabilities:        
    Interest-bearing demand accounts$ 759,307$ 1,6740.29% $627,193 $2,1080.47% 
    Money market accounts 351,846 1,1990.45%  332,489  1,2990.54% 
    Savings accounts 342,199 3310.13%  313,315  3760.16% 
    Certificates of Deposit 573,951 2,9150.68%  677,868  4,9751.07% 
    Total interest-bearing deposits 2,027,303 6,1200.40%  1,950,865  8,7580.64% 
    Borrowed funds 119,059 2,7013.02%  179,913  3,2262.39% 
    Total interest-bearing liabilities 2,146,362 8,8210.71%  2,130,778  11,9840.75% 
    Non-interest-bearing liabilities 631,097    497,358    
    Total liabilities 2,777,459    2,628,136    
    Stockholders' equity 272,730    255,125    
    Total liabilities and stockholders' equity$ 3,050,189   $2,883,261    
    Net interest income $ 83,764   $72,239  
    Net interest rate spread(1)  3.64%   3.30% 
    Net interest margin(2)  3.79%   3.47% 
             
    (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 loan losses.        
    (5)  Includes non-accrual loans which are immaterial to the yield      
             


     Financial Condition data by quarter
     Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
          
     (In thousands, except book values)
    Total assets$3,265,612 $3,072,771 $3,040,310 $2,967,528 $2,983,787 
    Cash and cash equivalents 221,024  206,172  396,653  411,629  442,938 
    Securities 111,159  105,717  107,576  110,373  106,137 
    Loans receivable, net 2,787,015  2,620,630  2,395,930  2,304,942  2,289,854 
    Deposits 2,712,946  2,655,030  2,631,175  2,561,402  2,541,405 
    Borrowings 249,573  124,377  109,181  108,986  155,790 
    Stockholders’ equity 282,682  271,637  276,159  274,024  263,081 
    Book value per common share1$15.42 $15.04 $14.72 $14.47 $13.93 
    Tangible book value per common share2$15.11 $14.73 $14.41 $14.16 $13.62 
          
     Operating data by quarter
     Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
     (In thousands, except for per share amounts)
    Net interest income$30,951 $27,741 $25,072 $25,154 $24,613 
    Provision (credit ) for loan losses -  -  (2,575) (985) 680 
    Non-interest income 1,446  -313  -600  2,608  1,317 
    Non-interest expense 13,453  13,056  12,959  13,707  13,528 
    Income tax expense 5,552  4,209  4,136  4,289  3,400 
    Net income$13,392 $10,163 $9,952 $10,751 $8,322 
    Net income per diluted share$0.76 $0.58 $0.56 $0.61 $0.47 
    Common Dividends declared per share$0.16 $0.16 $0.16 $0.16 $0.16 
          
     Financial Ratios(3)
     Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
    Return on average assets 1.74%  1.32%  1.33%  1.42%  1.13% 
    Return on average stockholder’s equity 19.42%  15.00%  14.67%  16.25%  12.84% 
    Net interest margin 4.18%  3.74%  3.46%  3.44%  3.46% 
    Stockholder’s equity to total assets 8.66%  8.84%  9.08%  9.23%  8.82% 
    Efficiency Ratio4 41.53%  47.60%  52.95%  49.37%  52.17% 
          
     Asset Quality Ratios
     Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
     (In thousands, except for ratio %)
    Non-Accrual Loans$8,505 $9,201 $9,232 $14,889 $20,725 
    Non-Accrual Loans as a % of Total Loans 0.30%  0.35%  0.38%  0.64%  0.89% 
    ALLL as % of Non-Accrual Loans 390.3%  370.7%  368.1%  249.3%  184.1% 
    Impaired Loans 40,524  42,411  40,955  49,382  58,863 
    Classified Loans 30,180  31,426  29,850  39,157  48,547 
          
    (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 2022Q2 2022Q1 2022Q4 2021Q3 2021
     (In thousands)
    Residential one-to-four family$242,238 $235,883 $233,251 $224,534 $224,330 
    Commercial and multi-family 2,164,320  2,030,597  1,804,815  1,720,174  1,739,976 
    Construction 153,103  155,070  141,082  153,904  149,076 
    Commercial business 205,661  181,868  198,216  191,139  161,416 
    Home equity 56,064  51,808  52,279  50,469  52,109 
    Consumer 2,545  2,656  2,726  3,717  2,730 
     $2,823,931 $2,657,882 $2,432,369 $2,343,937 $2,329,637 
    Less:     
    Deferred loan fees, net (3,721) (3,139) (2,459) (1,876) (1,627)
    Allowance for loan loss (33,195) (34,113) (33,980) (37,119) (38,156)
          
    Total loans, net$2,787,015 $2,620,630 $2,395,930 $2,304,942 $2,289,854 
          
     Non-Accruing Loans in Portfolio by quarter
     Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
     (In thousands)
    Residential one-to-four family$263 $267 $278 $282 $455 
    Commercial and multi-family 757  757  757  8,601  13,322 
    Construction 3,180  3,043  2,954  2,847  2,787 
    Commercial business 4,305  5,104  5,243  3,132  4,128 
    Home equity -  30  -  27  33 
    Total:$8,505 $9,201 $9,232 $14,889 $20,725 
          


     Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
          
     Tangible Book Value per Share
     Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
     (In thousands, except per share amounts)
    Total Stockholders' Equity$282,682 $271,637 $276,159 $274,024 $263,081 
    Less: goodwill 5,252  5,252  5,252  5,252  5,252 
    Less: preferred stock 21,003  16,563  26,213  28,923  25,723 
    Total tangible common stockholders' equity 256,427  249,822  244,694  239,849  232,106 
    Shares common shares outstanding 16,974  16,960  16,984  16,940  17,036 
    Book value per common share$15.42 $15.04 $14.72 $14.47 $13.93 
    Tangible book value per common share$15.11 $14.73 $14.41 $14.16 $13.62 
          
     Efficiency Ratios
     Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
     (In thousands, except for ratio %)
    Net interest income$30,951 $27,741 $25,072 $25,154 $24,613 
    Non-interest income 1,446  -313  -600  2,608  1,317 
    Total income 32,397  27,428  24,472  27,762  25,930 
    Non-interest expense 13,453  13,056  12,959  13,707  13,528 
    Efficiency Ratio 41.53%  47.60%  52.95%  49.37%  52.17% 
          
          
     Distribution of Deposits by quarter
     Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
     (In thousands)
    Demand:     
    Non-Interest Bearing$610,425 $595,167 $621,403 $588,207 $544,619 
    Interest Bearing 726,012  810,535  724,020  668,262  644,453 
    Money Market 370,353  360,356  354,302  337,126  351,508 
    Sub-total:$1,706,790 $1,766,058 $1,699,725 $1,593,595 $1,540,580 
    Savings and Club 338,864  347,279  341,529  329,724  326,807 
    Certificates of Deposit 667,291  541,693  589,921  638,083  674,018 
    Total Deposits:$2,712,945 $2,655,030 $2,631,175 $2,561,402 $2,541,405 
          


    CONTACT:THOMAS COUGHLIN,
     PRESIDENT & CEO
     RYAN BLAKE, COO
     1 (800) 680-6872

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