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 $6.7 million for the third quarter of 2023, compared to $8.6 million in the second quarter of 2023, and $13.4 million for the third quarter of 2022. Earnings per diluted share for the third quarter of 2023 were $0.39, compared to $0.50 in the preceding quarter and $0.76 in the third quarter of 2022. Net income and earnings per diluted share for the third quarter of 2023, adjusted for the unrealized losses on equity investments, were $7.1 million and $0.41, respectively.

The Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on November 17, 2023 to common shareholders of record on November 3, 2023.

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

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

Executive Summary

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

Balance Sheet Review

Total assets increased by $265.9 million, or 7.5 percent, to $3.812 billion at September 30, 2023, from $3.546 billion at December 31, 2022. The increase in total assets was mainly related to increases in total loans and in cash and cash equivalents.

Total cash and cash equivalents increased by $22.5 million, or 9.8 percent, to $251.9 million at September 30, 2023, from $229.4 million at December 31, 2022. The increase was primarily due to an increase in Federal Home Loan Bank (“FHLB”) borrowings and in deposits.

Loans receivable, net, increased by $240.4 million, or 7.9 percent, to $3.286 billion at September 30, 2023, from $3.045 billion at December 31, 2022. Total loan increases during 2023 included increases of $99.7 million in commercial real estate and multi-family loans, $88.5 million in commercial business loans, $40.3 million in construction loans, $1.7 million in residential one-to-four family loans and $9.6 million in home equity and consumer loans. The allowance for credit losses decreased $459,000 to $31.9 million, or 402.4 percent of non-accruing loans and 0.96 percent of gross loans, at September 30, 2023, as compared to an allowance for credit losses of $32.4 million, or 633.6 percent of non-accruing loans and 1.05 percent of gross loans, at December 31, 2022. Upon adoption of the CECL methodology, the Day One CECL adjustment resulted in a $4.2 million reduction to our ACL.

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

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

Debt obligations increased by $240.5 million to $660.3 million at September 30, 2023 from $419.8 million at December 31, 2022. The weighted average interest rate of FHLB advances was 4.45 percent at September 30, 2023 and 4.07 percent at December 31, 2022. The weighted average maturity of FHLB advances as of September 30, 2023 was 1.71 years. The interest rate of our subordinated debt balances was 8.35 percent at September 30, 2023 and 5.62 percent at December 31, 2022 due to the fixed-rate period on such debt ending as of July 31, 2023.

Stockholders’ equity increased by $12.4 million, or 4.3 percent, to $303.6 million at September 30, 2023, from $291.3 million at December 31, 2022. The increase was primarily attributable to the increase in retained earnings of $17.6 million, or 15.3 percent, to $132.7 million at September 30, 2023 from $115.1 million at December 31, 2022 partially offset by the $3.1 million increase in accumulated other comprehensive loss during the first nine months of 2023.

Third Quarter 2023 Income Statement Review

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

Net interest income decreased by $5.3 million, or 17.0 percent, to $25.7 million for the third quarter of 2023, from $31.0 million for the third quarter of 2022. The decrease in net interest income resulted from higher interest expense which was partially offset by higher interest income.

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

Interest expense increased by $19.9 million to $23.4 million for the third quarter of 2023 from $3.4 million for the third quarter of 2022. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 253 basis points to 3.17 percent for the third quarter of 2023 from 0.64 percent for the third quarter of 2022, while the average balance of interest-bearing liabilities increased by $791.0 million to $2.947 billion for the third quarter of 2023 from $2.156 billion for the third quarter of 2022. The increase in the average cost of funds resulted primarily from the persistently high interest rate environment.

The net interest margin was 2.78 percent for the third quarter of 2023 compared to 4.18 percent for the third quarter of 2022. The decrease in the net interest margin compared to the third quarter of 2022 was the result of the increase in the cost of interest-bearing liabilities partially offset by the increase in the yield on interest-earning assets.

During the third quarter of 2023, the Company experienced $496,000 in net charge-offs compared to $918,000 in net charge offs in the third quarter of 2022. The Bank had non-accrual loans totaling $7.93 million, or 0.24 percent of gross loans, at September 30, 2023 as compared to $8.51 million, or 0.30 percent of gross loans, at September 30, 2022. The allowance for credit losses on loans was $31.9 million, or 0.96 percent of gross loans at September 30, 2023, and $33.2 million, or 1.18 percent of gross loans at September 30, 2022. The provision for credit losses was $2.21 million for the third quarter of 2023 compared to no provisioning for loan losses for the third quarter of 2022. Management believes that the allowance for credit losses on loans was adequate at September 30, 2023 and September 30, 2022.

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

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

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

Year-to-Date Income Statement Review

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

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

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

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

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

Net interest margin was 2.95 percent for the first nine months of 2023, compared to 3.79 percent for the first nine months of 2022. The decrease in the net interest margin compared to the prior period was the result of an increase in the average volume of interest-bearing liabilities as well as an increase in the cost of interest-bearing liabilities.

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

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

Non-interest expense increased by $4.6 million, or 11.5 percent, to $44.0 million for the first nine months of 2023 from $39.5 million for the same period in 2022. The increase in operating expenses for 2023 was driven primarily by an increase in salaries and employee benefits, an increase in regulatory assessments, and higher data processing expenses. The number of full-time equivalent employees for the period ended September 30, 2023 was 300, as compared with 302 for the same period in 2022.

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

Asset Quality

The Bank had non-accrual loans totaling $7.93 million, or 0.24 percent, of gross loans at September 30, 2023, as compared to $5.1 million, or 0.17 percent, of gross loans at December 31, 2022. The allowance for credit losses was $31.9 million, or 0.96 percent of gross loans at September 30, 2023, and $32.4 million, or 1.05 percent of gross loans at December 31, 2022. The allowance for credit losses was 402.4 percent of non-accrual loans at September 30, 2023, and 633.6 percent of non-accrual loans at December 31, 2022.

About BCB Bancorp, Inc.

Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has 24 branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branches in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.

Forward-Looking Statements

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

The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations; our ability to manage liquidity in a rapidly changing and unpredictable market; supply chain disruptions, labor shortages; and additional interest rate increases by the Federal Reserve. Other factors that could cause actual results to differ materially from forward-looking statements or historical performance: the inability to close loans in our pipeline; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; supply chain disruptions; any future pandemics and the related adverse local and national economic consequences; civil unrest in the communities that the company serves; customer acceptance of the Bank’s products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; economic conditions; the impact, extent and timing of technological changes, capital management activities, actions of governmental agencies and legislative and regulatory actions and reforms, other factors discussed elsewhere in this release, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year-ended December 31, 2022, and in Part II, Item 1A of our quarterly report on Form 10-Q for the quarter-ended March 31, 2023, and our other periodic reports that we file with the SEC.

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

Explanation of Non-GAAP Financial Measures

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

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

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

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

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

	Three Months Ended September 30,2023
	2023								2022
	Average 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)	$	3,330,446		$	44,133	5.30	%		$	2,699,093	$	32,302	4.79	%
Investment Securities		96,723			1262	5.22	%			112,172		1,276	4.55	%
FHLB stock and other interest-earning assets		270,729			3,672	5.43	%			153,705		822	2.14	%
Total Interest-earning assets		3,697,898			49,067	5.31	%			2,964,970		34,400	4.64	%
Non-interest-earning assets		127,780								106,750
Total assets	$	3,825,678							$	3,071,720
Interest-bearing liabilities:
Interest-bearing demand accounts	$	628,804		$	2,244	1.43	%		$	774,870	$	707	0.36	%
Money market accounts		331,813			2,311	2.79	%			353,821		462	0.52	%
Savings accounts		300,484			182	0.24	%			343,515		113	0.13	%
Certificates of Deposit		1,024,900			10,923	4.26	%			545,293		1,087	0.80	%
Total interest-bearing deposits		2,286,001			15,660	2.74	%			2,017,500		2,369	0.47	%
Borrowed funds		660,773			7,727	4.68	%			138,314		1,080	3.12	%
Total interest-bearing liabilities		2,946,774			23,387	3.17	%			2,155,813		3,449	0.64	%
Non-interest-bearing liabilities		577,963								640,102
Total liabilities		3,524,737								2,795,916
Stockholders’ equity		300,941								275,804
Total liabilities and stockholders’ equity	$	3,825,678							$	3,071,720
Net interest income				$	25,680						$	30,951
Net interest rate spread(1)						2.13	%						4.00	%
Net interest margin(2)						2.78	%						4.18	%
(1)     Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
(2)     Net interest margin represents net interest income divided by average total interest-earning assets.
(3)     Annualized.
(4)     Excludes allowance for credit losses.
(5)     Includes non-accrual loans which are immaterial to the yield.

	Nine Months Ended September 30,
	2023							2022
	Average 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)	$	3,271,018	$	125,666	5.12	%		$	2,521,375	$	87,404	4.62	%
Investment Securities		102,143		3,822	4.99	%			109,422		3,369	4.11	%
FHLB stock and other interest-earning assets		252,999		9,168	4.83	%			314,024		1,812	0.77	%
Total Interest-earning assets		3,626,161		138,656	5.10	%			2,944,821		92,585	4.19	%
Non-interest-earning assets		123,262							105,368
Total assets	$	3,749,422						$	3,050,189
Interest-bearing liabilities:
Interest-bearing demand accounts	$	684,691	$	6,242	1.22	%		$	759,307	$	1,674	0.29	%
Money market accounts		325,923		5,657	2.31	%			351,846		1,199	0.45	%
Savings accounts		311,733		443	0.19	%			342,199		331	0.13	%
Certificates of Deposit		926,684		25,849	3.72	%			573,951		2,915	0.68	%
Total interest-bearing deposits		2,249,032		38,192	2.26	%			2,027,303		6,120	0.40	%
Borrowed funds		585,028		20,324	4.63	%			119,059		2,701	3.02	%
Total interest-bearing liabilities		2,834,060		58,516	2.75	%			2,146,362		8,821	0.71	%
Non-interest-bearing liabilities		618,037							631,097
Total liabilities		3,452,097							2,777,459
Stockholders’ equity		297,326							272,730
Total liabilities and stockholders’ equity	$	3,749,422						$	3,050,189
Net interest income			$	80,140						$	83,764
Net interest rate spread(1)					2.35	%						3.64	%
Net interest margin(2)					2.95	%						3.79	%
(1)     Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
(2)     Net interest margin represents net interest income divided by average total interest-earning assets.
(3)     Presented on an annualized basis, where appropriate.
(4)     Excludes allowance for loan losses.
(5)     Includes non-accrual loans which are immaterial to the yield.

	Financial Condition data by quarter
		Q3 2023			Q2 2023			Q1 2023			Q4 2022			Q3 2022
	(In thousands, except book values)
Total assets	$	3,812,120		$	3,872,853		$	3,763,056		$	3,546,193		$	3,265,612
Cash and cash equivalents		251,916			273,212			261,075			229,359			221,024
Securities		94,444			100,473			101,446			109,401			111,159
Loans receivable, net		3,285,727			3,319,721			3,231,864			3,045,331			2,787,015
Deposits		2,819,556			2,885,721			2,867,209			2,811,607			2,712,946
Borrowings		660,298			660,160			569,965			419,769			249,573
Stockholders’ equity		303,636			299,623			297,618			291,254			282,682
Book value per common share1	$	16.79		$	16.60		$	16.38		$	15.96		$	15.42
Tangible book value per common share2	$	16.48		$	16.28		$	16.07		$	15.65		$	15.11
	Operating data by quarter
		Q3 2023			Q2 2023			Q1 2023			Q4 2022			Q3 2022
	(In thousands, except for per share amounts)
Net interest income	$	25,680		$	26,989		$	27,471		$	30,181		$	30,951
Provision (benefit) for credit losses		2,205			1,350			622			(500	)		-
Non-interest income (loss)		1,406			1,118			(1,664	)		1,062			1,446
Non-interest expense		15,463			14,706			13,854			16,037			13,453
Income tax expense		2,707			3,447			3,225			3,634			5,552
Net income	$	6,711		$	8,604		$	8,106		$	12,072		$	13,392
Net income per diluted share	$	0.39		$	0.50		$	0.46		$	0.69		$	0.76
Common Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
	Financial Ratios(3)
		Q3 2023			Q2 2023			Q1 2023			Q4 2022			Q3 2022
Return on average assets		0.70	%		0.90	%		0.90	%		1.46	%		1.74	%
Return on average stockholders’ equity		8.92	%		11.57	%		11.05	%		16.99	%		19.42	%
Net interest margin		2.78	%		2.92	%		3.15	%		3.76	%		4.18	%
Stockholders’ equity to total assets		7.97	%		7.74	%		7.91	%		8.21	%		8.66	%
Efficiency Ratio4		57.09	%		52.32	%		53.68	%		51.33	%		41.53	%
	Asset Quality Ratios
		Q3 2023			Q2 2023			Q1 2023			Q4 2022			Q3 2022
	(In thousands, except for ratio %)
Non-Accrual Loans	$	7,931		$	5,696		$	5,058		$	5,109		$	8,505
Non-Accrual Loans as a % of Total Loans		0.24	%		0.17	%		0.16	%		0.17	%		0.30	%
ACL as % of Non-Accrual Loans		402.4	%		530.3	%		571.0	%		633.6	%		390.3	%
Individually Analyzed Loans		35,868			28,250			17,585			28,272			40,524
Classified Loans		42,807			28,250			17,585			17,816			30,180
(1) Calculated by dividing stockholders’ equity, less preferred equity, to shares outstanding.
(2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’
common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”
(3) Ratios are presented on an annualized basis, where appropriate.
(4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income
and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”

	Recorded Investment in Loans Receivable by quarter
		Q3 2023			Q2 2023			Q1 2023			Q4 2022			Q3 2022
	(In thousands)
Residential one-to-four family	$	251,845		$	250,345		$	246,683		$	250,123		$	242,238
Commercial and multi-family		2,444,887			2,490,883			2,466,932			2,345,229			2,164,320
Construction		185,202			179,156			162,553			144,931			153,103
Commercial business		370,512			368,948			327,598			282,007			205,661
Home equity		66,046			61,595			58,822			56,888			56,064
Consumer		3,647			3,994			3,383			3,240			2,545
	$	3,322,139		$	3,354,921		$	3,265,971		$	3,082,418		$	2,823,931
Less:
Deferred loan fees, net		(4,498	)		(4,995	)		(5,225	)		(4,714	)		(3,721	)
Allowance for credit losses		(31,914	)		(30,205	)		(28,882	)		(32,373	)		(33,195	)
Total loans, net	$	3,285,727		$	3,319,721		$	3,231,864		$	3,045,331		$	2,787,015
	Non-Accruing Loans in Portfolio by quarter
		Q3 2023			Q2 2023			Q1 2023			Q4 2022			Q3 2022
	(In thousands)
Residential one-to-four family	$	178		$	178		$	237		$	243		$	263
Commercial and multi-family		3,267			-			340			346			757
Construction		2,886			4,145			3,217			3,180			3,180
Commercial business		1,600			1,373			1,264			1,340			4,305
Home equity		-			-			-			-			-
Total:	$	7,931		$	5,696		$	5,058		$	5,109		$	8,505
	Distribution of Deposits by quarter
		Q3 2023			Q2 2023			Q1 2023			Q4 2022			Q3 2022
	(In thousands)
Demand:
Non-Interest Bearing	$	523,912		$	620,509		$	604,935		$	613,910		$	610,425
Interest Bearing		574,577			714,420			686,576			757,614			726,012
Money Market		348,732			328,543			361,558			305,556			370,353
Sub-total:	$	1,447,221		$	1,663,472		$	1,653,069		$	1,677,080		$	1,706,790
Savings and Club		293,962			307,435			319,131			329,753			338,864
Certificates of Deposit		1,078,373			914,814			895,009			804,774			667,291
Total Deposits:	$	2,819,556		$	2,885,721		$	2,867,209		$	2,811,607		$	2,712,945

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

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