• BCB Bancorp, Inc. Reports Record Net Income of $45.6 Million in 2022 and Earns $12.1 Million in Fourth Quarter 2022; Quarterly Cash Dividend is $0.16 Per Share

    Source: Nasdaq GlobeNewswire / 26 Jan 2023 08:30:01   America/New_York

    BAYONNE, N.J., Jan. 26, 2023 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported that its net income for the year ended December 31, 2022 increased 33.1 percent to $45.6 million, the highest annual earnings in the Company’s history, compared with $34.2 million for 2021. Earnings per diluted share for 2022 were $2.58 as compared to $1.92 for 2021. For the fourth quarter of 2022, net income was $12.1 million, a 9.9 percent decrease compared to $13.4 million in the third quarter of 2022, and a 12.3 percent increase compared to $10.8 million in the fourth quarter of 2021. Earnings per diluted share for the fourth quarter of 2022 were $0.69, compared to $0.76 in the preceding quarter and $0.61 in the fourth quarter 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 February 17, 2023, to common shareholders of record on February 3, 2023.

    “We posted another strong quarter and Company-record profits for the year 2022. Our results are indicative of the successful execution of our business strategy and the efforts of our team to help our customers meet the needs of the communities we serve,” stated Thomas Coughlin, President and Chief Executive Officer. “Despite a challenging high rate environment, our operating results for the fourth quarter of 2022 reflect continued strong loan growth, increased interest income, and robust profitability.”

    “Looking ahead, we remain committed to protecting our profitability as we continue to grow in a disciplined and prudent manner. We plan to onboard new relationships and talent that have become available due to market disruptions caused by recent mergers. We expect to benefit from the successful execution of a number of internal projects that will significantly enhance our digital footprint and automate back-office operations. We firmly believe that these actions will further enhance our franchise value over time and we will come out stronger and more profitable on the other side of the current economic cycle.”

    “The Company will adopt the Current Expected Credit Loss (“CECL”) methodology during the first quarter of 2023. CECL replaced the incurred loss methodology and therefore, starting in 2023, the allowance and provision for credit losses will be based upon estimated expected credit losses rather than incurred losses. Our asset quality remains strong and continues to show improvement. Our non-accrual loans to total loans ratio decreased to 0.17 percent at December 31, 2022, from 0.30 percent at September 30, 2022, and 0.64 percent a year ago. Due to the solid performance of our asset quality metrics, we recorded a credit to the loan loss provision of $500,000 during the fourth quarter of 2022. This is compared to a credit to the loan loss provision of $985,000 in the fourth quarter of 2021,” said Mr. Coughlin.

    Executive Summary

    • Net interest margin was 3.76 percent for the fourth quarter of 2022, compared to 4.18 percent for the third quarter of 2022, and 3.44 percent for the fourth quarter of 2021.
      • Total yield on interest-earning assets increased 21 basis points to 4.85 percent for the fourth quarter of 2022, compared to 4.64 percent for the third quarter of 2022, and increased 97 basis points from 3.88 percent for the fourth quarter of 2021.
      • Total cost of interest-bearing liabilities increased 82 basis points to 1.46 percent for the fourth quarter of 2022, compared to 0.64 percent for the third quarter of 2022, and increased 87 basis points from 0.59 percent for the fourth quarter of 2021.
    • The efficiency ratio for the fourth quarter was 51.3 percent compared to 41.5 percent in the prior quarter, and 49.4 percent in the fourth quarter of 2021.   The efficiency ratio for the fourth quarter of 2022 was impacted by the non-recurring consulting fee expense. During the fourth quarter of 2022, the Company executed a number of operational initiatives aimed at enhancing our digital presence and meaningfully improving our back-office capabilities. The effort involved renegotiating contracts with existing vendors and entering into contracts with new service providers. These initiatives will facilitate better customer service while also driving functional efficiencies. Additionally, the terms of the renegotiated contracts will generate expense savings beginning in January of 2023. A percentage of those future savings were paid out as a one-time fee of $1.6 million to the consulting organization that assisted with the overall project.
    • The return on average assets ratio for the fourth quarter was 1.46 percent compared to 1.74 percent in the prior quarter, and 1.42 percent in the fourth quarter of 2021.
    • The return on average equity ratio for the fourth quarter was 16.99 percent compared to 19.42 percent in the prior quarter, and 16.25 percent in the fourth quarter of 2021.
    • The Company had a credit for loan losses of $500,000 for the fourth quarter compared to no provision for loan losses for the prior quarter and a credit for loan losses of $985,000 for the fourth quarter of 2021.
    • Allowance for loan losses as a percentage of non-accrual loans was 633.6 percent at December 31, 2022, compared to 390.3 percent for the prior quarter and 249.3 percent at December 31, 2021, as total non-accrual loans decreased to $5.1 million at December 31, 2022 from $8.5 million for the prior quarter and $14.9 million at December 31, 2021.
    • Total loans receivable, net of allowance for loan losses, increased 32.1% to $3.045 billion at December 31, 2022, from $2.305 billion at December 31, 2021.
    • Total deposits were $2.812 billion at December 31, 2022, up from $2.561 billion at December 31, 2021.

    Balance Sheet Review

    Total assets increased by $578.7 million, or 19.5 percent, to $3.546 billion at December 31, 2022, from $2.968 billion at December 31, 2021. The increase in total assets was mainly related to increases in total loans.

    Total cash and cash equivalents decreased by $182.3 million, or 44.3 percent, to $229.4 million at December 31, 2022 from $411.6 million at December 31, 2021. This decrease was primarily due to the redeployment of cash and cash equivalents into loans.

    Loans receivable, net, increased by $740.4 million, or 32.1 percent, to $3.045 billion at December 31, 2022 from $2.305 billion at December 31, 2021. Total loan increases for 2022 included increases of $625.1 million in commercial real estate and multi-family loans, $90.9 million in commercial business loans, $25.6 million in residential one-to-four family loans and $6.4 million in home equity loans, partly offset by decreases of $9.0 million in construction loans and $477 thousand in consumer loans. The allowance for loan losses decreased $4.7 million to $32.4 million, or 633.6 percent of non-accruing loans and 1.05 percent of gross loans, at December 31, 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 decreased by $972,000, or 0.88 percent, to $109.4 million at December 31, 2022 from $110.4 million at December 31, 2021, representing repayments, calls and maturities, and unrealized losses, partly offset by purchases of $27.5 million, and sales of $1.2 million.

    Deposit liabilities increased by $250.2 million, or 9.8 percent, to $2.812 billion at December 31, 2022 from $2.561 billion at December 31, 2021. Total increases for 2022 included $25.7 million in non-interest-bearing deposit accounts, $89.4 million in NOW deposit accounts, and $166.7 million in certificates of deposit, including listing service and brokered deposit accounts. The increase in deposits was partly offset by a decrease of $31.6 million in money market accounts.

    Debt obligations increased by $310.8 million to $419.8 million at December 31, 2022 from $109.0 million at December 31, 2021. The weighted average interest rate of FHLB advances was 4.07 percent at December 31, 2022 and 1.39 percent at December 31, 2021. The weighted average maturity of FHLB advances as of December 31,2022 was 1.10 years. The fixed interest rate of our subordinated debt balances was 5.625 percent at December 31, 2022 and December 31, 2021.

    Stockholders’ equity increased by $17.2 million, or 6.3 percent, to $291.3 million at December 31, 2022 from $274.0 million at December 31, 2021. The increase was primarily attributable to the increase in retained earnings of $33.9 million, or 41.8 percent, to $115.1 million at December 31, 2022 from $81.2 million at December 31, 2021, related to net income less dividends paid for the twelve months ended December 31, 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 $7.6 million, and an increase in treasury stock of $3.4 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, caused by the recent increase in interest rates generally.

    Fourth Quarter 2022 Income Statement Review

    Net income was $12.1 million for the fourth quarter ended December 31, 2022 and $10.8 million for the fourth quarter ended December 31, 2021. The increase was driven by an increase in total interest income and a decrease in income tax provision, which were partly offset by a decrease in non-interest income, a lower credit for loan loss provision, and an increase in non-interest expenses for the fourth quarter of 2022 as compared with the fourth quarter of 2021.  

    Net interest income increased by $5.0 million, or 20.0 percent, to $30.2 million for the fourth quarter of 2022 from $25.2 million for the fourth quarter of 2021. The increase in net interest income resulted from higher interest income which was partially offset by higher interest expense.

    Interest income increased by $10.5 million, or 37.1 percent, to $38.9 million for the fourth quarter of 2022 from $28.4 million for the fourth quarter of 2021. The average balance of interest-earning assets increased $282.2 million, or 9.6 percent, to $3.207 billion for the fourth quarter of 2022 from $2.925 billion for the fourth quarter of 2021, while the average yield increased 97 basis points to 4.85 percent for the fourth quarter of 2022 from 3.88 percent for the fourth quarter of 2021. Interest income on loans for the fourth quarter of 2022 also included $647,000 of amortization of purchase credit fair value adjustments related to a prior acquisition, which added approximately eight basis points to the average yield on interest earning assets.

    Interest expense increased by $5.5 million to $8.7 million for the fourth quarter of 2022 from $3.2 million for the fourth quarter of 2021. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 87 basis points to 1.46 percent for the fourth quarter of 2022 from 0.59 percent for the fourth quarter of 2021, while the average balance of interest-bearing liabilities increased by $225.4 million to $2.382 billion for the fourth quarter of 2022 from $2.157 billion for the fourth quarter of 2021. The increase in the average cost of funds resulted primarily from the significantly higher interest rate environment during 2022 compared to 2021.

    The net interest margin was 3.76 percent for the fourth quarter of 2022, compared to 3.44 percent for the fourth quarter of 2021. The increase in the net interest margin compared to the fourth quarter of 2021 was the result of the improvement in the yield on interest-earning assets partially offset by the increase in the cost of interest-bearing liabilities. In a rapidly rising interest rate environment, management has been proactive in managing both the yield on earning assets and the cost of funds to protect net interest margin and continue to support the growth of net interest income.

    During the fourth quarter of 2022, the Company experienced $322,000 in net charge offs compared to $52,000 in the fourth quarter of 2021. The Bank had non-accrual loans totaling $5.1 million, or 0.17 percent, of gross loans at December 31, 2022 as compared to $14.9 million, or 0.64 percent of gross loans at December 31, 2021. The allowance for loan losses was $32.4 million, or 1.05 percent of gross loans at December 31, 2022, and $37.1 million, or 1.58 percent of gross loans at December 31, 2021. The credit for loan losses decreased by $485,000 to $500,000 for the fourth quarter of 2022 from $985,000 for the fourth quarter of 2021. Management believes that the allowance for loan losses was adequate at December 31, 2022 and December 31, 2021.

    Noninterest income decreased by $1.5 million, or 59.3 percent, to $1.1 million for the fourth quarter of 2022 from $2.6 million for fourth quarter of 2021. The decrease in total noninterest income was mainly related to a decrease in the realized and unrealized gains and losses on equity securities from a gain of $151,000 to a loss of $723,000 and a decrease in other non-interest income of $429,000. The realized and unrealized gains or losses on equity securities are based on market conditions. The other income for the fourth quarter of 2021 was higher primarily due to the reversal of certain liabilities previously recorded for loans acquired in the acquisition of IAB Bancorp, Inc. that paid off during the quarter.

    Noninterest expense increased by $2.3 million, or 17.0 percent, to $16.0 million for the fourth quarter of 2022 from $13.7 million for the fourth quarter of 2021. The increase in operating expenses for the fourth quarter of 2022 was primarily driven by the non-recurring consulting fee expense of $1.6 million discussed above for which there was no comparable expense in the fourth quarter of 2021. Other factors that contributed to the increase in operating expenses for the fourth quarter of 2022 included higher salaries and employee benefits and higher other expenses compared to the fourth quarter of 2021. The increase in salaries related to normal compensation increases, higher commission expenses from strong loan production, and hiring of additional staff. The number of full-time equivalent employees for the fourth quarter of 2022 was 301, as compared to 292 for the same period in 2021. Occupancy and equipment expense decreased by $105,000 to $2.7 million for the fourth quarter of 2022 from $2.8 million for the fourth quarter of 2021, mainly related to costs associated with branch closures in 2021.

    The income tax provision decreased by $655,000 or 15.3 percent, to $3.6 million for the fourth quarter of 2022 from $4.3 million for the fourth quarter of 2021. 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. The consolidated effective tax rate was 23.1% for the fourth quarter of 2022 compared to 28.5 percent for the fourth quarter of 2021.

    Year-to-Date Income Statement Review

    Net income increased by $11.3 million, or 33.1 percent, to $45.6 million for the year ended December 31, 2022 from $34.2 million for the year ended December 31, 2021. The increase in net income was driven by an increase in total interest income and credit for loan loss provision, which were partly offset by a decrease in non-interest income and increases in interest expense, non-interest expenses, and a higher income tax provision for 2022 as compared to 2021.  

    Net interest income increased by $16.6 million, or 17.0 percent, to $113.9 million for the year of 2022 from $97.4 million for the year of 2021. The increase in net interest income resulted from a $18.9 million increase in interest income, partly offset by an increase of $2.3 million in interest expense.

    Interest income increased by $18.9 million, or 16.8 percent, to $131.4 million for 2022, from $112.6 million for 2021. The average balance of interest-earning assets increased $197.4 million, or 7.0 percent, to $3.011 billion for 2022, from $2.814 for 2021, while the average yield increased 37 basis points to 4.37 percent for 2022, from 4.00 percent for 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 2022, as compared to 2021.  

    The increase in interest income mainly related to an increase in the average balance of loans receivable of $298.9 million to $2.627 billion for 2022, from $2.328 billion for 2021. The increase in the average balance on loans receivable was a result of the continued strength of the Company’s loan pipeline. Interest income on loans for 2022 also included $1.4 million of amortization of purchase credit fair value adjustments related to a prior acquisition, which added approximately five basis points to the average yield on interest earning assets.

    Interest expense increased by $2.3 million, or 15.3 percent, to $17.5 million for 2022, from $15.2 million for 2021. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 8 basis points to 0.79 percent for 2022, from 0.71 percent for 2021, and an increase in the average balance of interest-bearing liabilities of $68.5 million, or 3.2 percent, to $2.206 billion 2022, from $2.137 billion for 2021. The increase in the average cost of funds primarily resulted from the high interest rate environment in 2022.

    Net interest margin was 3.78 percent for 2022, compared to 3.46 percent for 2021. The increase in the net interest margin compared to the prior period was the result of an increase in the average volume of loans receivable as well as an increase in the yield on loans partially offset by the increase in the Company’s cost of funds.

    During the year ended December 31, 2022, the Company experienced $1.7 million in net charge offs compared to $375,000 in net charge offs for the year ended December 31, 2021. The Bank had non-accrual loans totaling $5.1 million, or 0.17 percent, of gross loans at December 31, 2022 as compared to $14.9 million, or 0.64 percent of gross loans at December 31, 2021. The allowance for loan losses was $32.4 million, or 1.05 percent of gross loans at December 31, 2022, and $37.1 million, or 1.58 percent of gross loans at December 31, 2021. The credit for loan losses was $3.1 million for 2022 compared to loan loss provision expense of $3.9 million for 2021. The credit for provision for 2022 reflected the improving asset quality and more favorable economic metrics compared to the COVID-19 environment in 2021. Management believes that the allowance for loan losses was adequate at December 31, 2022 and December 31, 2021.

    Noninterest income decreased by $7.1 million, or 81.7 percent, to $1.6 million for 2022 from $8.7 million for 2021. The decrease in total noninterest income was mainly related to a decrease of $6.4 million in the realized and unrealized gains and losses on equity securities (from a gain of $147,000 to a loss of $6.3 million), as well as a decrease of $538,000 in gain on sale of loans, $371,000 in gain on sale of premises, and $391,000 in other income. The realized and unrealized gains or losses on equity securities are based on market conditions.

    Noninterest expense increased by $1.5 million, or 2.8 percent, to $55.5 million for the year ended December 31, 2022 from $54.0 million for the year ended December 31, 2021. The increase in operating expenses for 2022 was driven higher by the non-recurring consulting fee expense of $1.6 million for which there was no comparable expense in 2021. Other factors that contributed to the increase in operating expenses for 2022 included higher salaries and employee benefits and higher advertising and promotion expenses compared to 2021. The increase in salaries related to normal compensation increases, higher commission expenses from strong loan production, and hiring of additional staff. The number of full-time equivalent employees for the year ended December 31, 2022 was 301, as compared with 292 for the same period in 2021. Occupancy and equipment expense decreased by $733,000 to $10.7 million for the year ended December 31, 2022 from $11.4 million for the year ended December 31, 2021, mainly related to costs associated with branch closures in 2021.

    The income tax provision increased by $3.5 million or 25.1 percent, to $17.5 million for 2022 from $14.0 million in 2021. The increase in the income tax provision was a result of the higher taxable income for the year ended December 31, 2022 compared to the year ended December 31, 2021. The income tax provision for 2022 also included the benefit from the reversal of tax accrual that occurred during the fourth quarter of 2022. The consolidated effective tax rate was 27.8% for 2022 compared to 29.0 percent for 2021.

    Asset Quality

    During the fourth quarter of 2022, the Company recognized $322,000 in net charge offs, compared to $52,000 for the fourth quarter of 2021.

    The credit for loan losses decreased by $485,000 to $500,000 for the fourth quarter of 2022 from $985,000 for the fourth quarter of 2021. The Bank had non-accrual loans totaling $5.1 million, or 0.17 percent, of gross loans at December 31, 2022, as compared to $14.9 million, or 0.64 percent, of gross loans at December 31, 2021.

    Performing troubled debt restructured (“TDR”) loans that were not included in nonaccrual loans at December 31, 2022, were $10.6 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.

    The allowance for loan losses was $32.4 million, or 1.05 percent of gross loans at December 31, 2022, and $37.1 million, or 1.58 percent of gross loans at December 31, 2021. The allowance for loan losses was 633.6 percent of non-accrual loans at December 31, 2022, and 249.3 percent of non-accrual loans at December 31, 2021.

    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 27 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 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; 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; 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,   
     December 31, 2022September 30, 2022December 31, 2021Dec 31, 2022 vs.
    Sept 30, 2022    		 Dec 31, 2022 vs.
    Dec 31, 2021
    Interest and dividend income:(In thousands, except per share amounts, Unaudited)   
    Loans, including fees$36,173 $32,302 $26,987 12.0% 34.0%
    Mortgage-backed securities 185  173  148 6.9% 25.0%
    Other investment securities 1,177  1,103  929 6.7% 26.7%
    FHLB stock and other interest earning assets 1,321  822  286 60.7% 361.9%
    Total interest and dividend income 38,856  34,400  28,350 13.0% 37.1%
           
    Interest expense:      
    Deposits:      
    Demand 2,410  1,169  928 106.2% 159.7%
    Savings and club 118  113  129 4.4% -8.5%
    Certificates of deposit 3,973  1,087  1,185 265.5% 235.3%
      6,501  2,369  2,242 174.4% 190.0%
    Borrowings 2,174  1,080  954 101.3% 127.9%
    Total interest expense 8,675  3,449  3,196 151.5% 171.4%
           
    Net interest income 30,181  30,951  25,154 -2.5% 20.0%
    (Credit) provision for loan losses (500)  -  (985)   -49.2%
           
    Net interest income after (credit) provision for loan losses 30,681  30,951  26,139 -0.9% 17.4%
           
    Non-interest income:      
    Fees and service charges 1,138  1,251  1,119 -9.0% 1.7%
    Gain on sales of loans 3  18  92 -83.3% -96.7%
    Realized and unrealized (loss) gain on equity investments (723)  (559)  151 29.3% -578.8%
    BOLI income 584  646  757 -9.6% -22.9%
    Other 60  90  489 -33.3% -87.7%
    Total non-interest income 1,062  1,446  2,608 0.0% -59.3%
           
    Non-interest expense:      
    Salaries and employee benefits 7,626  6,944  6,842 9.8% 11.5%
    Occupancy and equipment 2,651  2,608  2,756 1.6% -3.8%
    Data processing and communications 1,579  1,520  1,531 3.9% 3.1%
    Professional fees 2,169  614  473 253.3% 358.6%
    Director fees 261  375  253 -30.4% 3.2%
    Regulatory assessment fees 431  264  317 63.3% 36.0%
    Advertising and promotions 260  286  162 -9.1% 60.5%
    Other real estate owned, net 4  1  23 300.0% -82.6%
    Loss from extinguishment of debt -  -  526   -100.0%
    Other 1,056  841  824 25.6% 28.2%
    Total non-interest expense 16,037  13,453  13,707 19.2% 17.0%
           
    Income before income tax provision 15,706  18,944  15,040 -17.1% 4.4%
    Income tax provision 3,634  5,552  4,289 -34.5% -15.3%
           
    Net Income 12,072  13,392  10,751 -9.9% 12.3%
    Preferred stock dividends 172  174  308 -0.9% -44.0%
    Net Income available to common stockholders$11,900 $13,218 $10,443 -10.0% 13.9%
           
    Net Income per common share-basic and diluted      
    Basic$0.70 $0.78 $0.61 -9.8% 15.3%
    Diluted$0.69 $0.76 $0.61 -9.4% 12.8%
           
    Weighted average number of common shares outstanding      
    Basic 16,916  16,982  16,988 -0.4% -0.4%
    Diluted 17,289  17,356  17,230 -0.4% 0.3%
           


     Statements of Income - Twelve Months Ended, 
     December 31, 2022December 31, 2021Dec 31, 2022 vs.
    Dec 31, 2021
    Interest and dividend income:(In thousands, except per share amounts, Unaudited) 
    Loans, including fees$123,577 $107,660 14.8%
    Mortgage-backed securities 564  680 -17.1%
    Other investment securities 4,167  3,274 27.3%
    FHLB stock and other interest earning assets 3,133  959 226.7%
    Total interest and dividend income 131,441  112,573 16.8%
        
    Interest expense:   
    Deposits:   
    Demand 5,283  4,335 21.9%
    Savings and club 449  505 -11.1%
    Certificates of deposit 6,889  6,160 11.8%
      12,621  11,000 14.7%
    Borrowings 4,875  4,180 16.6%
    Total interest expense 17,496  15,180 15.3%
        
    Net interest income 113,945  97,393 17.0%
    (Credit) provision for loan losses (3,075)  3,855 -179.8%
        
    Net interest income after (credit) provision for loan losses 117,020  93,538 25.1%
        
    Non-interest income:   
    Fees and service charges 4,816  3,972 21.2%
    Gain on sales of loans 129  667 -80.7%
    (Loss) gain on sale of impaired loans -  (64) -100.0%
    Gain on sales of other real estate owned -  11 -100.0%
    Realized and unrealized (loss) gain on equity investments (6,269)  147 -4364.6%
    BOLI income 2,671  2,952 -9.5%
    Gain on sale of premises -  371 -100.0%
    Other 248  639 -61.2%
    Total non-interest income 1,595  8,695 -81.7%
        
    Non-interest expense:   
    Salaries and employee benefits 28,021  26,410 6.1%
    Occupancy and equipment 10,627  11,360 -6.5%
    Data processing and communications 6,033  6,024 0.1%
    Professional fees 3,766  1,919 96.2%
    Director fees 1,253  1,043 20.1%
    Regulatory assessments 1,243  1,310 -5.1%
    Advertising and promotions 941  554 69.9%
    Other real estate owned, net 10  35 -71.4%
    Loss from extinguishment of debt -  1,597 -100.0%
    Other 3,611  3,723 -3.0%
    Total non-interest expense 55,505  53,975 2.8%
        
    Income before income tax provision 63,110  48,258 30.8%
    Income tax provision 17,531  14,018 25.1%
        
    Net Income 45,579  34,240 33.1%
    Preferred stock dividends 796  1,160 -31.3%
    Net Income available to common stockholders$44,783 $33,080 35.4%
        
    Net Income per common share-basic and diluted   
    Basic$2.64 $1.94 36.0%
    Diluted$2.58 $1.92 34.4%
        
    Weighted average number of common shares outstanding   
    Basic 16,969  17,063 -0.6%
    Diluted 17,349  17,239 0.6%

     

    Statements of Financial ConditionDecember 31, 2022September 30, 2022December 31, 2021December 31, 2022 vs.
    September 30, 2022    		December 31, 2022 vs.
    December 31, 2021
    ASSETS(In Thousands, Unaudited)  
    Cash and amounts due from depository institutions$11,520 $11,192 $9,606 2.9%19.9%
    Interest-earning deposits 217,839  209,832  402,023 3.8%-45.8%
    Total cash and cash equivalents 229,359  221,024  411,629 3.8%-44.3%
          
    Interest-earning time deposits 735  735  735 - - 
    Debt securities available for sale 91,715  92,751  85,186 -1.1%7.7%
    Equity investments 17,686  18,408  25,187 -3.9%-29.8%
    Loans held for sale 658  -  952 - -30.9%
    Loans receivable, net of allowance for loan losses     
    of $32,373, $33,195 and $37,119, respectively 3,045,331  2,787,015  2,304,942 9.27%32.12%
    Federal Home Loan Bank of New York stock, at cost 20,113  12,388  6,084 62.4%230.6%
    Premises and equipment, net 10,508  10,723  12,237 -2.0%-14.1%
    Accrued interest receivable 13,455  11,093  9,183 21.3%46.5%
    Other real estate owned 75  75  75 - - 
    Deferred income taxes 16,462  15,863  12,959 3.8%27.0%
    Goodwill and other intangibles 5,382  5,394  5,431 -0.2%-0.9%
    Operating lease right-of-use asset 13,520  11,785  12,457 14.7%8.5%
    Bank-owned life insurance ("BOLI") 71,656  71,072  72,485 0.8%-1.1%
    Other assets 9,538  7,286  7,986 30.9%19.4%
    Total Assets$3,546,193 $3,265,612 $2,967,528 8.6%19.5%
          
    LIABILITIES AND STOCKHOLDERS' EQUITY     
          
    LIABILITIES     
    Non-interest bearing deposits$613,910 $610,425 $588,207 0.6%4.4%
    Interest bearing deposits 2,197,697  2,102,521  1,973,195 4.5%11.4%
    Total deposits 2,811,607  2,712,946  2,561,402 3.6%9.8%
    FHLB advances 382,261  212,123  71,711 80.2%433.1%
    Subordinated debentures 37,508  37,450  37,275 0.2%0.6%
    Operating lease liability 13,859  12,102  12,752 14.5%8.7%
    Other liabilities 9,704  8,309  10,364 16.8%-6.4%
    Total Liabilities 3,254,939  2,982,930  2,693,504 9.1%20.8%
          
    STOCKHOLDERS' EQUITY     
    Preferred stock: $0.01 par value, 10,000 shares authorized -  -  -   
    Additional paid-in capital preferred stock 21,003  21,003  28,923 0.0%-27.4%
    Common stock: no par value, 40,000 shares authorized -  -  -   
    Additional paid-in capital common stock 196,164  195,057  193,927 0.6%1.2%
    Retained earnings 115,109  105,894  81,171 8.7%41.8%
    Accumulated other comprehensive (loss) income (6,491)  (6,149)  1,128 5.6%-675.4%
    Treasury stock, at cost (34,531)  (33,123)  (31,125) 4.3%10.9%
    Total Stockholders' Equity 291,254  282,682  274,024 3.0%6.3%
          
    Total Liabilities and Stockholders' Equity$3,546,193 $3,265,612 $2,967,528 8.6%19.5%
          
    Outstanding common shares 16,931  16,974  16,940   


     Three Months Ended December 31,
     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)$2,939,281$36,1734.92% $2,300,573$26,9874.69%
    Investment Securities 110,142 13624.95%  108,700 1,0773.96%
    FHLB stock and other interest-earning assets 157,807 1,3213.35%  515,788 2860.22%
    Total Interest-earning assets 3,207,230 38,8564.85%  2,925,061 28,3503.88%
    Non-interest-earning assets 110,701    102,632  
    Total assets$3,317,931   $3,027,693  
    Interest-bearing liabilities:       
    Interest-bearing demand accounts$729,160$1,2950.71% $668,765$5490.33%
    Money market accounts 345,343 1,1141.29%  345,721 3790.44%
    Savings accounts 334,394 1180.14%  329,130 1290.16%
    Certificates of Deposit 734,216 3,9742.17%  659,479 1,1850.72%
    Total interest-bearing deposits 2,143,112 6,5011.21%  2,003,095 2,2420.45%
    Borrowed funds 239,252 2,1743.63%  153,837 9542.48%
    Total interest-bearing liabilities 2,382,364 8,6751.46%  2,156,932 3,1960.59%
    Non-interest-bearing liabilities 651,408    606,132  
    Total liabilities 3,033,772    2,763,064  
    Stockholders' equity 284,159    264,629  
    Total liabilities and stockholders' equity$3,317,931   $3,027,693  
    Net interest income $30,181   $25,154 
    Net interest rate spread(1)  3.39%   3.28%
    Net interest margin(2)  3.76%   3.44%
            
    (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.     


     Year Ended December 31,
     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)$2,626,710$123,5774.70% $2,327,781$107,6604.63%
    Investment Securities 109,604 4,7314.32%  108,545 3,9543.64%
    FHLB stock and other interest-earning assets 274,649 3,1331.14%  377,209 9590.25%
    Total Interest-earning assets 3,010,963 131,4414.37%  2,813,535 112,5734.00%
    Non-interest-earning assets 106,712    106,039  
    Total assets$3,117,675   $2,919,574  
    Interest-bearing liabilities:       
    Interest-bearing demand accounts$751,708$2,9700.40% $637,671$2,6570.42%
    Money market accounts 350,207 2,3130.66%  335,824 1,6780.50%
    Savings accounts 340,232 4490.13%  317,301 5050.16%
    Certificates of Deposit 614,346 6,8891.12%  673,233 6,1600.92%
    Total interest-bearing deposits 2,056,494 12,6210.61%  1,964,029 11,0000.56%
    Borrowed funds 149,354 4,8753.26%  173,341 4,1802.41%
    Total interest-bearing liabilities 2,205,848 17,4960.79%  2,137,370 15,1800.71%
    Non-interest-bearing liabilities 636,216    524,668  
    Total liabilities 2,842,064    2,662,038  
    Stockholders' equity 275,611    257,536  
    Total liabilities and stockholders' equity$3,117,675   $2,919,574  
    Net interest income $113,945   $97,393 
    Net interest rate spread(1)  3.57%   3.29%
    Net interest margin(2)  3.78%   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) 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
     Q4 2022Q3 2022Q2 2022Q1 2022Q4 2021
          
     (In thousands, except book values)
    Total assets$3,546,193 $3,265,612 $3,072,771 $3,040,310 $2,967,528 
    Cash and cash equivalents 229,359  221,024  206,172  396,653  411,629 
    Securities 109,401  111,159  105,717  107,576  110,373 
    Loans receivable, net 3,045,331  2,787,015  2,620,630  2,395,930  2,304,942 
    Deposits 2,811,607  2,712,946  2,655,030  2,631,175  2,561,402 
    Borrowings 419,769  249,573  124,377  109,181  108,986 
    Stockholders’ equity 291,254  282,682  271,637  276,159  274,024 
    Book value per common share1$15.96 $15.42 $15.04 $14.72 $14.47 
    Tangible book value per common share2$15.65 $15.11 $14.73 $14.41 $14.16 
          
     Operating data by quarter
     Q4 2022Q3 2022Q2 2022Q1 2022Q4 2021
     (In thousands, except for per share amounts)
    Net interest income$30,181 $30,951 $27,741 $25,072 $25,154 
    Credit (provision) for loan losses (500)  -  -  (2,575)  (985) 
    Non-interest income 1,062  1,446  (313)  (600)  2,608 
    Non-interest expense 16,037  13,453  13,056  12,959  13,707 
    Income tax expense 3,634  5,552  4,209  4,136  4,289 
    Net income$12,072 $13,392 $10,163 $9,952 $10,751 
    Net income per diluted share$0.69 $0.76 $0.58 $0.56 $0.61 
    Common Dividends declared per share$0.16 $0.16 $0.16 $0.16 $0.16 
          
     Financial Ratios(3)
     Q4 2022Q3 2022Q2 2022Q1 2022Q4 2021
    Return on average assets 1.46%  1.74%  1.32%  1.33%  1.42% 
    Return on average stockholder’s equity 16.99%  19.42%  15.00%  14.67%  16.25% 
    Net interest margin 3.76%  4.18%  3.74%  3.46%  3.44% 
    Stockholder’s equity to total assets 8.21%  8.66%  8.84%  9.08%  9.23% 
    Efficiency Ratio4 51.33%  41.53%  47.60%  52.95%  49.37% 
          
     Asset Quality Ratios
     Q4 2022Q3 2022Q2 2022Q1 2022Q4 2021
     (In thousands, except for ratio %)
    Non-Accrual Loans$5,109 $8,505 $9,201 $9,232 $14,889 
    Non-Accrual Loans as a % of Total Loans 0.17%  0.30%  0.35%  0.38%  0.64% 
    ALLL as % of Non-Accrual Loans 633.6%  390.3%  370.7%  368.1%  249.3% 
    Impaired Loans 28,272  40,524  42,411  40,955  49,382 
    Classified Loans 17,816  30,180  31,426  29,850  39,157 
          
    (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 2022Q3 2022Q2 2022Q1 2022Q4 2021
     (In thousands)
    Residential one-to-four family$250,123 $242,238 $235,883 $233,251 $224,534 
    Commercial and multi-family 2,345,229  2,164,320  2,030,597  1,804,815  1,720,174 
    Construction 144,931  153,103  155,070  141,082  153,904 
    Commercial business 282,007  205,661  181,868  198,216  191,139 
    Home equity 56,888  56,064  51,808  52,279  50,469 
    Consumer 3,240  2,545  2,656  2,726  3,717 
     $3,082,418 $2,823,931 $2,657,882 $2,432,369 $2,343,937 
    Less:     
    Deferred loan fees, net (4,714)  (3,721)  (3,139)  (2,459)  (1,876) 
    Allowance for loan loss (32,373)  (33,195)  (34,113)  (33,980)  (37,119) 
          
    Total loans, net$3,045,331 $2,787,015 $2,620,630 $2,395,930 $2,304,942 
          
     Non-Accruing Loans in Portfolio by quarter
     Q4 2022Q3 2022Q2 2022Q1 2022Q4 2021
     (In thousands)
    Residential one-to-four family$243 $263 $267 $278 $282 
    Commercial and multi-family 346  757  757  757  8,601 
    Construction 3,180  3,180  3,043  2,954  2,847 
    Commercial business 1,340  4,305  5,104  5,243  3,132 
    Home equity -  -  30  -  27 
    Total:$5,109 $8,505 $9,201 $9,232 $14,889 
          
     Distribution of Deposits by quarter
     Q4 2022Q3 2022Q2 2022Q1 2022Q4 2021
     (In thousands)
    Demand:     
    Non-Interest Bearing$613,909 $610,425 $595,167 $621,403 $588,207 
    Interest Bearing 757,615  726,012  810,535  724,020  668,262 
    Money Market 305,556  370,353  360,356  354,302  337,126 
    Sub-total:$1,677,080 $1,706,790 $1,766,058 $1,699,725 $1,593,595 
    Savings and Club 329,753  338,864  347,279  341,529  329,724 
    Certificates of Deposit 804,774  667,291  541,693  589,921  638,083 
    Total Deposits:$2,811,607 $2,712,945 $2,655,030 $2,631,175 $2,561,402 


     Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
          
     Tangible Book Value per Share
     Q4 2022Q3 2022Q2 2022Q1 2022Q4 2021
     (In thousands, except per share amounts)
    Total Stockholders' Equity$291,254 $282,682 $271,637 $276,159 $274,024 
    Less: goodwill 5,252  5,252  5,252  5,252  5,252 
    Less: preferred stock 21,003  21,003  16,563  26,213  28,923 
    Total tangible common stockholders' equity 264,999  256,427  249,822  244,694  239,849 
    Shares common shares outstanding 16,931  16,974  16,960  16,984  16,940 
    Book value per common share$15.96 $15.42 $15.04 $14.72 $14.47 
    Tangible book value per common share$15.65 $15.11 $14.73 $14.41 $14.16 
          
     Efficiency Ratios
     Q4 2022Q3 2022Q2 2022Q1 2022Q4 2021
     (In thousands, except for ratio %)
    Net interest income$30,181 $30,951 $27,741 $25,072 $25,154 
    Non-interest income 1,062  1,446  -313  -600  2,608 
    Total income 31,243  32,397  27,428  24,472  27,762 
    Non-interest expense 16,037  13,453  13,056  12,959  13,707 
    Efficiency Ratio 51.33%  41.53%  47.60%  52.95%  49.37% 


    Contact: Thomas Coughlin,
      President & CEO
      Jawad Chaudhry, CFO
      (201) 823-0700

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