BCBP BCB Bancorp Inc

BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $8.6 million for the second quarter of 2023, compared to $8.1 million in the first quarter of 2023, and $10.2 million for the second quarter of 2022. Earnings per diluted share for the second quarter of 2023 were $0.50, compared to $0.46 in the preceding quarter and $0.58 in the second quarter of 2022. Net income and earnings per diluted share for the second quarter of 2023, adjusted for the unrealized losses on equity investments, were $9.1 million and $0.53, 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 August 18, 2023 to common shareholders of record on August 4, 2023.

“We continue to be very profitable in a challenging macro environment where competition for deposits and cost of funding remain high. We are focused on protecting our net interest income while also maintaining a strong liquidity position and a robust capital profile. The slowdown in our balance sheet growth during the second quarter, despite high customer demand, is reflective of prudent management of our liquidity and capital resources,” stated Thomas Coughlin, President and Chief Executive Officer.

“Looking ahead, we remain committed to growing our profitability and franchise value. We expect to benefit from the successful execution of a number of internal projects that are designed to enhance our digital footprint and also from the hiring efforts that have increased the overall talent profile of our institution. We firmly believe that our strategic actions will help us come out stronger on the other side of the current economic cycle,” said Mr. Coughlin.

“Our asset quality remains strong and our non-accrual loans to total loans ratio was 0.17 percent at June 30, 2023, compared to 0.16 percent at March 31, 2023, and 0.35 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 $1.35 million during the second quarter of 2023 compared to $622,000 during the preceding quarter,” said Mr. Coughlin.

Executive Summary

• Total deposits were $2.886 billion at June 30, 2023, up from $2.867 billion at March 31, 2023.
• Net interest margin was 2.92 percent for the second quarter of 2023, compared to 3.15 percent for the first quarter of 2023, and 3.74 percent for the second quarter of 2022.
  • Total yield on interest-earning assets increased 25 basis points to 5.11 percent for the second quarter of 2023, compared to 4.86 percent for the first quarter of 2023, and increased 101 basis points from 4.10 percent compared to the second quarter of 2022.
  • Total cost of interest-bearing liabilities increased 56 basis points to 2.80 percent for the second quarter of 2023, compared to 2.24 percent for the first quarter of 2023, and increased 230 basis points from 0.50 percent for the second quarter of 2022.
• The efficiency ratio for the second quarter was 52.3 percent compared to 53.7 percent in the prior quarter, and 47.6 percent in the second quarter of 2022.
• The annualized return on average assets ratio for the second quarter was 0.90 percent, compared to 0.90 percent in the prior quarter, and 1.32 percent in the second quarter of 2022.
• The annualized return on average equity ratio for the second quarter was 11.6 percent, compared to 11.0 percent in the prior quarter, and 15.0 percent in the second quarter of 2022.
• The provision for credit losses was $1.35 million in the second quarter of 2023 compared to $622,000 for the first quarter and no provision for the second quarter of 2022.
• Allowance for credit losses (“ACL”) as a percentage of non-accrual loans was 530.3 percent at June 30, 2023, compared to 571.0 percent for the prior quarter-end and 370.7 percent at June 30, 2022. The total non-accrual loans were $5.70 million at June 30, 2023, $5.06 million at March 31, 2023 and $9.20 million at June 30, 2022.
• Total loans receivable, net of allowance for credit losses, increased 26.7 percent to $3.320 billion at June 30, 2023, up from $2.621 billion at June 30, 2022.

Balance Sheet Review

Total assets increased by $326.7 million, or 9.2 percent, to $3.873 billion at June 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 $43.9 million, or 19.1 percent, to $273.2 million at June 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 $274.4 million, or 9.0 percent, to $3.320 billion at June 30, 2023, from $3.045 billion at December 31, 2022. Total loan increases during 2023 included increases of $145.7 million in commercial real estate and multi-family loans, $86.9 million in commercial business loans, $34.2 million in construction loans, $222,000 in residential one-to-four family loans and $5.5 million in home equity and consumer loans. The allowance for credit losses decreased $2.2 million to $30.2 million, or 530.3 percent of non-accruing loans and 0.90 percent of gross loans, at June 30, 2023, as compared to an allowance for credit losses of $32.4 million, or 633.7 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 $8.9 million, or 8.2 percent, to $100.5 million at June 30, 2023, from $109.4 million at December 31, 2022, representing unrealized losses, calls and maturities, and repayments.

Deposit liabilities increased by $74.1 million, or 2.6 percent, to $2.886 billion at June 30, 2023, from $2.811 billion at December 31, 2022. Interest bearing demand and savings and club deposits decreased by $65.5 million offset by the increase in non-interest bearing, money market, and certificates of deposits of $139.6 million during the first six months of 2023.

Debt obligations increased by $240.4 million to $660.2 million at June 30, 2023 from $419.8 million at December 31, 2022. The weighted average interest rate of FHLB advances was 4.53 percent at June 30, 2023 and 4.07 percent at December 31, 2022. The weighted average maturity of FHLB advances as of June 30, 2023 was 1.27 years. The fixed interest rate of our subordinated debt balances was 5.62 percent at June 30, 2023 and December 31, 2022.

Stockholders’ equity increased by $8.4 million, or 2.9 percent, to $299.6 million at June 30, 2023, from $291.3 million at December 31, 2022. The increase was primarily attributable to the increase in retained earnings of $13.8 million, or 12.0 percent, to $128.9 million at June 30, 2023 from $115.1 million at December 31, 2022 partially offset by the $2.9 million increase in accumulated other comprehensive loss during the first six months of 2023.

Second Quarter 2023 Income Statement Review

Net income was $8.6 million for the second quarter ended June 30, 2023 and $10.2 million for the second quarter ended June 30, 2022. The decline was primarily driven by lower net interest income, higher credit loss provisioning and higher non-interest expenses for the second quarter of 2023 as compared with the second quarter of 2022.  

Net interest income decreased by $752,000, or 2.7 percent, to $27.0 million for the second quarter of 2023, from $27.7 million for the second 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 $16.8 million, or 55.1 percent, to $47.2 million for the second quarter of 2023 from $30.5 million for the second quarter of 2022. The average balance of interest-earning assets increased $725.9 million, or 24.5 percent, to $3.695 billion for the second quarter of 2023 from $2.969 billion for the second quarter of 2022, while the average yield increased 101 basis points to 5.11 percent for the second quarter of 2023 from 4.10 percent for the second quarter of 2022.

Interest expense increased by $17.5 million to $20.2 million for the second quarter of 2023 from $2.7 million for the second quarter of 2022. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 230 basis points to 2.80 percent for the second quarter of 2023 from 0.50 percent for the second quarter of 2022, while the average balance of interest-bearing liabilities increased by $717.8 million to $2.891 billion for the second quarter of 2023 from $2.174 billion for the second 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 2.92 percent for the second quarter of 2023 compared to 3.74 percent for the second quarter of 2022. The decrease in the net interest margin compared to the second 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. In a persistently high 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 second quarter of 2023, the Company experienced $27,000 in net charge-offs compared to $133,000 in net recoveries in the second quarter of 2022. The Bank had non-accrual loans totaling $5.70 million, or 0.17 percent of gross loans, at June 30, 2023 as compared to $9.2 million, or 0.35 percent of gross loans, at June 30, 2022. The allowance for credit losses on loans was $30.2 million, or 0.90 percent of gross loans at June 30, 2023, and $34.1 million, or 1.28 percent of gross loans at June 30, 2022. The provision for credit losses was $1.35 million for the second quarter of 2023 compared to no provisioning for loan losses for the second quarter of 2022. Management believes that the allowance for credit losses on loans was adequate at June 30, 2023 and June 30, 2022.

Non-interest income increased by $1.4 million to $1.1 million for the second quarter of 2023 from a loss of $313,000 for second quarter of 2022. The increase in total non-interest income was mainly related to the decrease in the realized and unrealized losses on equity securities from $2.3 million to $669,000 thousand partially offset by a decrease in BOLI income of $419,000. The realized and unrealized losses on equity securities are based on market conditions.

Non-interest expense increased by $1.7 million, or 12.6 percent, to $14.7 million for the second quarter of 2023 from $13.1 million for the second quarter of 2022. The increase in operating expenses for the first quarter of 2023 was primarily driven by the higher salaries, higher regulatory assessment charges, and increased data processing expenses compared to the second quarter of 2022. The increase in salaries related to targeted hiring and normal compensation increases. The number of full-time equivalent employees for the second quarter of 2023 was 307, as compared to 301 for the same period in 2022.

The income tax provision decreased by $762,000, or 18.1 percent, to $3.4 million for the second quarter of 2023 from $4.2 million for the second quarter of 2022. The consolidated effective tax rate was 28.6 percent for the second quarter of 2023 compared to 29.3 percent for the second quarter of 2022.

Year-to-Date Income Statement Review

Net income decreased by $3.4 million, or 16.9 percent, to $16.7 million for the first six months of 2023 from $20.1 million for the first six 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 increased by $1.6 million, or 3.1 percent, to $54.5 million for the first six months of 2023 from $52.8 million for the first six months of 2022. The increase in net interest income resulted from a $31.4 million increase in interest income, partly offset by an increase of $29.8 million in interest expense.

Interest income increased by $31.4 million, or 54.0 percent, to $89.6 million for the first six months of 2023, from $58.2 million for the first six months of 2022. The average balance of interest-earning assets increased $655.1 million, or 22.3 percent, to $3.590 billion for the first six months of 2023, from $2.935 for the first six months of 2022, while the average yield increased 102 basis points to 4.99 percent from 3.97 percent for the same comparable period. 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 six 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 $809.8 million to $3.241 billion for the first six months of 2023, from $2.431 billion for the first six months of 2022. The increase in the average balance of loans receivable was a result of the continued strength of the Company’s loan pipeline.

Interest expense increased by $29.8 million, or 553.9 percent, to $35.1 million for 2023, from $5.4 million for 2022. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 203 basis points to 2.53 percent for the first six months of 2023, from 0.50 percent for the first six months of 2022, and an increase in the average balance of interest-bearing liabilities of $635.2 million, or 29.7 percent, to $2.777 billion from $2.142 billion over the same period. 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 six months of 2023 compared to the same period in 2022.

Net interest margin was 3.03 percent for the first six months of 2023, compared to 3.60 percent for the first six 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 six months of 2023, the Company experienced $25,000 in net recoveries compared to $431,000 in net charge offs for the same period in 2022. The Bank had non-accrual loans totaling $5.7 million, or 0.17 percent, of gross loans at June 30, 2023 as compared to $9.2 million, or 0.35 percent of gross loans at June 30, 2022. The allowance for credit losses was $30.2 million, or 0.90 percent of gross loans at June 30, 2023, and $34.1 million, or 1.28 percent of gross loans at June 30, 2022. The provision for credit losses was $2.0 million for the first six 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 June 30, 2023 and June 30, 2022.

Non-interest income increased by $367,000 to a loss of $546,000 for the first six months of 2023 from a loss of $913,000 for the first six months of 2022. The improvement in total noninterest income was mainly related to a decrease of $1.1 million in the realized and unrealized gains and losses on equity securities (from a loss of $5.0 million to a loss of $3.9 million) partially offset by a decrease of $753,000 in BOLI income. The realized and unrealized gains or losses on equity securities are based on market conditions.

Non-interest expense increased by $2.5 million, or 9.8 percent, to $28.6 million for the first six months of 2023 from $26.0 million for the same period in 2022. The increase in operating expenses for 2023 was driven primarily by the increase in salaries and employee benefits, higher data processing expenses, and an increase in the regulatory assessments. The increase in salaries related to targeted hiring of additional staff. The number of full-time equivalent employees for the period ended June 30, 2023 was 307, as compared with 301 for the same period in 2022.

The income tax provision decreased by $1.7 million or 20.0 percent, to $6.7 million for the first six months of 2023 from $8.3 million for the same period in 2022. The decrease in the income tax provision was a result of the lower taxable income for the six months ended June 30, 2023 compared to the same period in 2022.   The consolidated effective tax rate was 28.5 percent for the first six months of 2023 compared to 29.3 percent for the first six months of 2022.

Asset Quality

The Bank had non-accrual loans totaling $5.7 million, or 0.17 percent, of gross loans at June 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 $30.2 million, or 0.90 percent of gross loans at June 30, 2023, and $32.4 million, or 1.05 percent of gross loans at December 31, 2022. The allowance for credit losses was 530.3 percent of non-accrual loans at June 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,
	June 30, 2023			March 31, 2023			June 30, 2022			June 30, 2023 vs.Mar. 31, 2023			June 30, 2023 vs.June 30, 2022
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	42,644		$	38,889		$	28,781		9.7	%		48.2	%
Mortgage-backed securities		184			186			47		-1.1	%		291.5	%
Other investment securities		1,070			1,120			939		-4.5	%		14.0	%
FHLB stock and other interest earning assets		3,339			2,157			694		54.8	%		381.1	%
Total interest and dividend income		47,237			42,352			30,461		11.5	%		55.1	%
Interest expense:
Deposits:
Demand		4,190			3,154			946		32.8	%		342.9	%
Savings and club		143			118			110		21.2	%		30.0	%
Certificates of deposit		8,474			6,453			849		31.3	%		898.1	%
		12,807			9,725			1,905		31.7	%		572.3	%
Borrowings		7,441			5,156			815		44.3	%		813.0	%
Total interest expense		20,248			14,881			2,720		36.1	%		644.4	%
Net interest income		26,989			27,471			27,741		-1.8	%		-2.7	%
Provision for credit losses		1,350			622			-		117.0	%
Net interest income after provision for credit losses		25,639			26,849			27,741		-4.5	%		-7.6	%
Non-interest income:
Fees and service charges		1,442			1,098			1,213		31.3	%		18.9	%
Gain on sales of loans		-			6			43		-100.0	%		-100.0	%
Realized and unrealized loss on equity investments		(669	)		(3,227	)		(2,302	)	-79.3	%		-70.9	%
BOLI income		267			421			686		-36.6	%		-61.1	%
Other		78			38			47		105.3	%		66.0	%
Total non-interest income (loss)		1,118			(1,664	)		(313	)	-167.2	%		-457.2	%
Non-interest expense:
Salaries and employee benefits		7,711			7,618			6,715		1.2	%		14.8	%
Occupancy and equipment		2,560			2,552			2,673		0.3	%		-4.2	%
Data processing and communications		1,795			1,665			1,469		7.8	%		22.2	%
Professional fees		622			566			489		9.9	%		27.2	%
Director fees		270			265			296		1.9	%		-8.8	%
Regulatory assessment fees		796			536			244		48.5	%		226.2	%
Advertising and promotions		350			278			254		25.9	%		37.8	%
Other real estate owned, net		1			1			4		0.0	%		-75.0	%
Other		601			373			912		61.1	%		-34.1	%
Total non-interest expense		14,706			13,854			13,056		6.1	%		12.6	%
Income before income tax provision		12,051			11,331			14,372		6.4	%		-16.1	%
Income tax provision		3,447			3,225			4,209		6.9	%		-18.1	%
Net Income		8,604			8,106			10,163		6.1	%		-15.3	%
Preferred stock dividends		174			173			138		0.6	%		26.2	%
Net Income available to common stockholders	$	8,430		$	7,933		$	10,025		6.3	%		-15.9	%
Net Income per common share-basic and diluted
Basic	$	0.50		$	0.47		$	0.59		7.1	%		-15.0	%
Diluted	$	0.50		$	0.46		$	0.58		8.6	%		-13.0	%
Weighted average number of common shares outstanding
Basic		16,824			16,949			16,997		-0.7	%		-1.0	%
Diluted		16,831			17,208			17,404		-2.2	%		-3.3	%

 

	Statements of Income - Six Months Ended,
	June 30, 2023			June 30, 2022			June 30, 2023 vs.June 30, 2022
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	81,533		$	55,102		48.0	%
Mortgage-backed securities		370			206		79.6	%
Other investment securities		2,190			1,887		16.1	%
FHLB stock and other interest earning assets		5,496			990		455.2	%
Total interest and dividend income		89,589			58,185		54.0	%
Interest expense:
Deposits:
Demand		7,344			1,704		331.0	%
Savings and club		261			218		19.7	%
Certificates of deposit		14,927			1,829		716.1	%
		22,532			3,751		500.7	%
Borrowings		12,597			1,621		677.1	%
Total interest expense		35,129			5,372		553.9	%
Net interest income		54,460			52,813		3.1	%
Provision (benefit) for credit losses		1,972			(2,575	)	-176.6	%
Net interest income after provision (credit) for credit losses		52,488			55,388		-5.2	%
Non-interest income:
Fees and service charges		2,540			2,427		4.7	%
Gain on sales of loans		6			108		-94.4	%
Realized and unrealized (loss) gain on equity investments		(3,896	)		(4,987	)	-21.9	%
BOLI income		688			1,441		-52.3	%
Other		116			98		18.4	%
Total non-interest loss		(546	)		(913	)	-40.2	%
Non-interest expense:
Salaries and employee benefits		15,329			13,451		14.0	%
Occupancy and equipment		5,112			5,368		-4.8	%
Data processing and communications		3,460			2,934		17.9	%
Professional fees		1,188			983		20.9	%
Director fees		535			617		-13.3	%
Regulatory assessments		1,332			548		143.1	%
Advertising and promotions		628			395		59.0	%
Other real estate owned, net		2			5		-60.0	%
Other		974			1,714		-43.2	%
Total non-interest expense		28,560			26,015		9.8	%
Income before income tax provision		23,382			28,460		-17.8	%
Income tax provision		6,672			8,345		-20.0	%
Net Income		16,710			20,115		-16.9	%
Preferred stock dividends		347			414		-16.2	%
Net Income available to common stockholders	$	16,363		$	19,701		-16.9	%
Net Income per common share-basic and diluted
Basic	$	0.97		$	1.16		-16.4	%
Diluted	$	0.96		$	1.13		-15.2	%
Weighted average number of common shares outstanding
Basic		16,886			16,989		-0.6	%
Diluted		17,010			17,375		-2.1	%

 

Statements of Financial Condition	June 30,2023			March 31,2023			December 31, 2022			June 30, 2023 vs.March 31, 2023		June 30, 2023 vs.December 31,2022
ASSETS	(In Thousands, Unaudited)
Cash and amounts due from depository institutions	$	13,378		$	13,213		$	11,520		1.2	%	16.1	%
Interest-earning deposits		259,834			247,862			217,839		4.8	%	19.3	%
Total cash and cash equivalents		273,212			261,075			229,359		4.6	%	19.1	%
Interest-earning time deposits		735			735			735		-		-
Debt securities available for sale		87,648			86,988			91,715		0.8	%	-4.4	%
Equity investments		12,825			14,458			17,686		-11.3	%	-27.5	%
Loans held for sale		-			-			658		-		-100.0	%
Loans receivable, net of allowance for credit losses
of $30,205, $28,882 and $32,373, respectively		3,319,721			3,231,864			3,045,331		2.72	%	9.01	%
Federal Home Loan Bank of New York stock, at cost		31,667			26,875			20,113		17.8	%	57.4	%
Premises and equipment, net		13,561			10,106			10,508		34.2	%	29.1	%
Accrued interest receivable		15,384			14,717			13,455		4.5	%	14.3	%
Other real estate owned		75			75			75		-		-
Deferred income taxes		16,445			15,178			16,462		8.3	%	-0.1	%
Goodwill and other intangibles		5,324			5,359			5,382		-0.7	%	-1.1	%
Operating lease right-of-use asset		13,658			15,111			13,520		-9.6	%	1.0	%
Bank-owned life insurance ("BOLI")		72,344			72,077			71,656		0.4	%	1.0	%
Other assets		10,254			8,438			9,538		21.5	%	7.5	%
Total Assets	$	3,872,853		$	3,763,056		$	3,546,193		2.9	%	9.2	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits	$	620,509		$	604,935		$	613,910		2.6	%	1.1	%
Interest bearing deposits		2,265,212			2,262,274			2,197,697		0.1	%	3.1	%
Total deposits		2,885,721			2,867,209			2,811,607		0.6	%	2.6	%
FHLB advances		622,536			532,399			382,261		16.9	%	62.9	%
Subordinated debentures		37,624			37,566			37,508		0.2	%	0.3	%
Operating lease liability		14,003			15,436			13,859		-9.3	%	1.0	%
Other liabilities		13,346			12,828			9,704		4.0	%	37.5	%
Total Liabilities		3,573,230			3,465,438			3,254,939		3.1	%	9.8	%
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000 shares authorized		-			-			-
Additional paid-in capital preferred stock		21,003			21,003			21,003		0.0	%	0.0	%
Common stock: no par value, 40,000 shares authorized		-			-			-
Additional paid-in capital common stock		197,521			197,197			196,164		0.2	%	0.7	%
Retained earnings		128,867			123,121			115,109		4.7	%	12.0	%
Accumulated other comprehensive loss		(9,421	)		(6,613	)		(6,491	)	42.5	%	45.1	%
Treasury stock, at cost		(38,347	)		(37,090	)		(34,531	)	3.4	%	11.1	%
Total Stockholders' Equity		299,623			297,618			291,254		0.7	%	2.9	%
Total Liabilities and Stockholders' Equity	$	3,872,853		$	3,763,056		$	3,546,193		2.9	%	9.2	%
Outstanding common shares	16,788			16,884			16,931

 

	Three Months Ended June 30,
		2023							2022
	Average Balance		Interest Earned/Paid		Average Yield/Rate (3)			Average Balance		Interest Earned/Paid		Average Yield/Rate (3)
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable(4)(5)	$	3,315,120	$	42,644	5.15	%		$	2,517,283	$	28,781	4.57	%
Investment Securities		100,971		1254	4.97	%			107,132		986	3.68	%
FHLB stock and other interest-earning assets		278,746		3,339	4.79	%			344,510		694	0.81	%
Total Interest-earning assets		3,694,837		47,237	5.11	%			2,968,926		30,461	4.10	%
Non-interest-earning assets		125,032							107,156
Total assets	$	3,819,869						$	3,076,081
Interest-bearing liabilities:
Interest-bearing demand accounts	$	712,414	$	2,209	1.24	%		$	796,227	$	569	0.29	%
Money market accounts		331,339		1,981	2.39	%			356,062		376	0.42	%
Savings accounts		312,201		143	0.18	%			346,432		110	0.13	%
Certificates of Deposit		904,766		8,474	3.75	%			565,479		850	0.60	%
Total interest-bearing deposits		2,260,721		12,807	2.27	%			2,064,199		1,905	0.37	%
Borrowed funds		630,706		7,441	4.72	%			109,436		815	2.98	%
Total interest-bearing liabilities		2,891,427		20,248	2.80	%			2,173,636		2,720	0.50	%
Non-interest-bearing liabilities		630,928							631,430
Total liabilities		3,522,355							2,805,066
Stockholders' equity		297,514							271,015
Total liabilities and stockholders' equity	$	3,819,869						$	3,076,081
Net interest income			$	26,989						$	27,741
Net interest rate spread(1)					2.31	%						3.60	%
Net interest margin(2)					2.92	%						3.74	%
(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.

 

	Six Months Ended June 30,
		2023							2022
	Average Balance		Interest Earned/Paid		Average Yield/Rate (3)			Average Balance		Interest Earned/Paid		Average Yield/Rate (3)
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable(4)(5)	$	3,240,812	$	81,533	5.03	%		$	2,431,043	$	55,102	4.53	%
Investment Securities		104,898		2,560	4.88	%			108,024		2,093	3.88	%
FHLB stock and other interest-earning assets		243,987		5,496	4.51	%			395,512		990	0.50	%
Total Interest-earning assets		3,589,697		89,589	4.99	%			2,934,580		58,185	3.97	%
Non-interest-earning assets		120,965							104,666
Total assets	$	3,710,663						$	3,039,245
Interest-bearing liabilities:
Interest-bearing demand accounts	$	713,097	$	3,998	1.12	%		$	751,396	$	967	0.26	%
Money market accounts		322,930		3,346	2.07	%			350,842		736	0.42	%
Savings accounts		317,451		261	0.16	%			341,531		218	0.13	%
Certificates of Deposit		876,762		14,927	3.40	%			588,518		1,828	0.62	%
Total interest-bearing deposits		2,230,241		22,532	2.02	%			2,032,286		3,751	0.37	%
Borrowed funds		546,528		12,597	4.61	%			109,272		1,621	2.97	%
Total interest-bearing liabilities		2,776,769		35,129	2.53	%			2,141,558		5,372	0.50	%
Non-interest-bearing liabilities		638,406							626,520
Total liabilities		3,415,175							2,768,078
Stockholders' equity		295,488							271,168
Total liabilities and stockholders' equity	$	3,710,663						$	3,039,245
Net interest income			$	54,460						$	52,813
Net interest rate spread(1)					2.46	%						3.46	%
Net interest margin(2)					3.03	%						3.60	%
(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 credit losses.
(5)   Includes non-accrual loans which are immaterial to the yield.

 

	Financial Condition data by quarter
	Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
	(In thousands, except book values)
Total assets	$	3,872,853		$	3,763,056		$	3,546,193		$	3,265,612		$	3,072,771
Cash and cash equivalents		273,212			261,075			229,359			221,024			206,172
Securities		100,473			101,446			109,401			111,159			105,717
Loans receivable, net		3,319,721			3,231,864			3,045,331			2,787,015			2,620,630
Deposits		2,885,721			2,867,209			2,811,607			2,712,946			2,655,030
Borrowings		660,160			569,965			419,769			249,573			124,377
Stockholders’ equity		299,623			297,618			291,254			282,682			271,637
Book value per common share1	$	16.60		$	16.38		$	15.96		$	15.42		$	15.04
Tangible book value per common share2	$	16.28		$	16.07		$	15.65		$	15.11		$	14.73
	Operating data by quarter
	Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
	(In thousands, except for per share amounts)
Net interest income	$	26,989		$	27,471		$	30,181		$	30,951		$	27,741
Provision (benefit) for credit losses		1,350			622			(500	)		-			-
Non-interest income (loss)		1,118			(1,664	)		1,062			1,446			(313	)
Non-interest expense		14,706			13,854			16,037			13,453			13,056
Income tax expense		3,447			3,225			3,634			5,552			4,209
Net income	$	8,604		$	8,106		$	12,072		$	13,392		$	10,163
Net income per diluted share	$	0.50		$	0.46		$	0.69		$	0.76		$	0.58
Common Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
	Financial Ratios(3)
	Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
Return on average assets		0.90%			0.90%			1.46%			1.74%			1.32%
Return on average stockholders' equity		11.57%			11.05%			16.99%			19.42%			15.00%
Net interest margin		2.92%			3.15%			3.76%			4.18%			3.74%
Stockholders' equity to total assets		7.74%			7.91%			8.21%			8.66%			8.84%
Efficiency Ratio4		52.32%			53.68%			51.33%			41.53%			47.60%
	Asset Quality Ratios
	Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
	(In thousands, except for ratio %)
Non-Accrual Loans	$	5,696		$	5,058		$	5,109		$	8,505		$	9,201
Non-Accrual Loans as a % of Total Loans		0.17%			0.16%			0.17%			0.30%			0.35%
ACL as % of Non-Accrual Loans		530.3%			571.0%			633.6%			390.3%			370.7%
Individually Analyzed Loans		28,250			17,585			28,272			40,524			42,411
(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
	Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
	(In thousands)
Residential one-to-four family	$	250,345		$	246,683		$	250,123		$	242,238		$	235,883
Commercial and multi-family		2,490,883			2,466,932			2,345,229			2,164,320			2,030,597
Construction		179,156			162,553			144,931			153,103			155,070
Commercial business		368,948			327,598			282,007			205,661			181,868
Home equity		61,595			58,822			56,888			56,064			51,808
Consumer		3,994			3,383			3,240			2,545			2,656
	$	3,354,921		$	3,265,971		$	3,082,418		$	2,823,931		$	2,657,882
Less:
Deferred loan fees, net		(4,995	)		(5,225	)		(4,714	)		(3,721	)		(3,139	)
Allowance for credit losses		(30,205	)		(28,882	)		(32,373	)		(33,195	)		(34,113	)
Total loans, net	$	3,319,721		$	3,231,864		$	3,045,331		$	2,787,015		$	2,620,630
	Non-Accruing Loans in Portfolio by quarter
	Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
	(In thousands)
Residential one-to-four family	$	178		$	237		$	243		$	263		$	267
Commercial and multi-family		-			340			346			757			757
Construction		4,145			3,217			3,180			3,180			3,043
Commercial business		1,373			1,264			1,340			4,305			5,104
Home equity		-			-			-			-			30
Total:	$	5,696		$	5,058		$	5,109		$	8,505		$	9,201
	Distribution of Deposits by quarter
	Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
	(In thousands)
Demand:
Non-Interest Bearing	$	620,509		$	604,935		$	613,910		$	610,425		$	595,167
Interest Bearing		714,420			686,576			757,614			726,012			810,535
Money Market		328,543			361,558			305,556			370,353			360,356
Sub-total:	$	1,663,472		$	1,653,069		$	1,677,080		$	1,706,790		$	1,766,058
Savings and Club		307,435			319,131			329,753			338,864			347,279
Certificates of Deposit		914,814			895,009			804,774			667,291			541,693
Total Deposits:	$	2,885,721		$	2,867,209		$	2,811,607		$	2,712,945		$	2,655,030

 

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
	Tangible Book Value per Share
	Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
	(In thousands, except per share amounts)
Total Stockholders' Equity	$	299,623		$	297,618		$	291,254		$	282,682		$	271,637
Less: goodwill		5,252			5,252			5,252			5,252			5,252
Less: preferred stock		21,003			21,003			21,003			21,003			16,563
Total tangible common stockholders' equity		273,368			271,363			264,999			256,427			249,822
Shares common shares outstanding		16,788			16,884			16,931			16,974			16,960
Book value per common share	$	16.60		$	16.38		$	15.96		$	15.42		$	15.04
Tangible book value per common share	$	16.28		$	16.07		$	15.65		$	15.11		$	14.73
	Efficiency Ratios
	Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
	(In thousands, except for ratio %)
Net interest income	$	26,989		$	27,471		$	30,181		$	30,951		$	27,741
Non-interest income (loss)		1,118			(1,664	)		1,062			1,446			(313	)
Total income		28,107			25,807			31,243			32,397			27,428
Non-interest expense		14,706			13,854			16,037			13,453			13,056
Efficiency Ratio		52.32%			53.68%			51.33%			41.53%			47.60%

 

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