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 $6.1 million for the fourth quarter of 2023, compared to $6.7 million in the third quarter of 2023, and $12.1 million for the fourth quarter of 2022. Earnings per diluted share for the fourth quarter of 2023 were $0.35, compared to $0.39 in the preceding quarter and $0.69 in the fourth quarter of 2022.

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 February 16, 2024 to common shareholders of record on February 5, 2024.

As previously announced, the Company named Michael A. Shriner as the President and Chief Executive Officer of BCB Bancorp, Inc. and BCB Bank, effective January 1, 2024. Mr. Shriner, a 36-year veteran of banking, was formerly President and Chief Executive Officer of Millington, New Jersey-based MSB Financial Corp. and Millington Bank prior to being acquired by Kearny Bank. Mr. Shriner joined Millington Bank in 1987 and held various leadership positions including that of Chief Operating Officer and Board member prior to his promotion to President and Chief Executive Officer in 2012. Most recently, he held the role of Market President for Kearny Bank where he transitioned legacy Millington Bank customers to Kearny Bank following the merger.

“BCB Bank is committed to its community and focused on providing best-in-class service to its customers. Historically, the Bank has posted strong growth while prudently managing its profitability, liquidity, capital, and asset quality profile. I am thrilled to be a part of the BCB Bank team and I am excited at the prospect of leading this organization and to achieve our future financial goals and initiatives,” stated Mr. Shriner.

Executive Summary

• Total deposits were $2.979 billion at December 31, 2023 compared to $2.820 billion at September 30, 2023.
• Net interest margin was 2.57 percent for the fourth quarter of 2023, compared to 2.78 percent for the third quarter of 2023, and 3.76 percent for the fourth quarter of 2022.
  • Total yield on interest-earning assets increased 2 basis points to 5.33 percent for the fourth quarter of 2023, compared to 5.31 percent for the third quarter of 2023, and increased 48 basis points from 4.85 percent for the fourth quarter of 2022.
  • Total cost of interest-bearing liabilities increased 28 basis points to 3.45 percent for the fourth quarter of 2023, compared to 3.17 percent for the third quarter of 2023, and increased 199 basis points from 1.46 percent for the fourth quarter of 2022.
• The efficiency ratio for the fourth quarter was 61.0 percent compared to 57.1 percent in the prior quarter, and 51.3 percent in the fourth quarter of 2022.
• The annualized return on average assets ratio for the fourth quarter was 0.63 percent, compared to 0.70 percent in the prior quarter, and 1.46 percent in the fourth quarter of 2022.
• The annualized return on average equity ratio for the fourth quarter was 7.9 percent, compared to 8.9 percent in the prior quarter, and 17.0 percent in the fourth quarter of 2022.
• The provision for credit losses was $1.9 million in the fourth quarter of 2023 compared to $2.2 million for the third quarter of 2023. In the fourth quarter of 2022 the Bank recorded a credit to the provision of $500 thousand.
• The allowance for credit losses (“ACL”) as a percentage of non-accrual loans was 178.9 percent at December 31, 2023, compared to 402.4 percent for the prior quarter-end and 633.6 percent at December 31, 2022. The total non-accrual loans were $18.8 million at December 31, 2023, $7.9 million at September 30, 2023 and $5.1 million at December 31, 2022.
• Total loans receivable, net of the allowance for credit losses, increased 7.7 percent to $3.280 billion at December 31, 2023, up from $3.045 billion at December 31, 2022, but down 0.2 percent from $3.286 billion at September 30, 2023.

Balance Sheet Review

Total assets increased by $286.2 million, or 8.1 percent, to $3.832 billion at December 31, 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 $50.2 million, or 21.9 percent, to $279.5 million at December 31, 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 $234.4 million, or 7.7 percent, to $3.280 billion at December 31, 2023, from $3.045 billion at December 31, 2022. Total loan increases during 2023 included increases of $90.2 million in commercial business loans, $88.9 million in commercial real estate and multi-family loans, $47.9 million in construction loans and $9.8 million in home equity and consumer loans. 1-4 family residential loans decreased $1.8 million. The allowance for credit losses increased $1.2 million to $33.6 million, or 178.9 percent of non-accruing loans and 1.01 percent of gross loans, at December 31, 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.

Total investment securities decreased by $12.5 million, or 11.5 percent, to $96.9 million at December 31, 2023, from $109.4 million at December 31, 2022, representing unrealized losses, calls and maturities, and repayments.

Deposit liabilities increased by $167.5 million, or 6.0 percent, to $2.979 billion at December 31, 2023, from $2.812 billion at December 31, 2022. Certificates of deposits and money market accounts increased $417.9 million and $65.4 million, respectively, offset by interest bearing demand, non-interest bearing and savings and club accounts which declined $315.8 million during the twelve months of 2023.

Debt obligations increased by $90.7 million to $510.4 million at December 31, 2023 from $419.7 million at December 31, 2022. The weighted average interest rate of FHLB advances was 4.21 percent at December 31, 2023 and 4.07 percent at December 31, 2022. The weighted average maturity of FHLB advances as of December 31, 2023 was 1.93 years. The interest rate of our subordinated debt balances was 8.36 percent at December 31, 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 $22.8 million, or 7.8 percent, to $314.1 million at December 31, 2023, from $291.3 million at December 31, 2022. The increase was primarily attributable to the increase in retained earnings of $20.8 million, or 18.1 percent, to $135.9 million at December 31, 2023 from $115.1 million at December 31, 2023.

Fourth Quarter 2023 Income Statement Review

Net income was $6.1 million for the fourth quarter ended December 31, 2023 and $12.1 million for the fourth quarter ended December 31, 2022. The decline was primarily driven by lower net interest income, higher credit loss provisioning and higher non-interest expenses, which were partially offset by an increase in non-interest income for the fourth quarter of 2023 as compared with the fourth quarter of 2022.

Net interest income decreased by $6.3 million, or 20.7 percent, to $23.9 million for the fourth quarter of 2023, from $30.2 million for the fourth 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 $10.8 million, or 27.9 percent, to $49.7 million for the fourth quarter of 2023 from $38.9 million for the fourth quarter of 2022. The average balance of interest-earning assets increased $521.4 million, or 16.3 percent, to $3.729 billion for the fourth quarter of 2023 from $3.207 billion for the fourth quarter of 2022, while the average yield increased 48 basis points to 5.33 percent for the fourth quarter of 2023 from 4.85 percent for the fourth quarter of 2022.

Interest expense increased by $17.1 million to $25.8 million for the fourth quarter of 2023 from $8.7 million for the fourth quarter of 2022. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 199 basis points to 3.45 percent for the fourth quarter of 2023 from 1.46 percent for the fourth quarter of 2022, while the average balance of interest-bearing liabilities increased by $607.5 million to $2.990 billion for the fourth quarter of 2023 from $2.382 billion for the fourth 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 2.57 percent for the fourth quarter of 2023 compared to 3.76 percent for the fourth quarter of 2022. The decrease in the net interest margin compared to the fourth 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 fourth quarter of 2023, the Company recognized $233,000 in net charge-offs compared to $322,000 in net charge-offs in the fourth quarter of 2022. The Bank had non-accrual loans totaling $18.8 million, or 0.57 percent of gross loans, at December 31, 2023 as compared to $5.1 million, or 0.17 percent of gross loans, at December 31, 2022. The allowance for credit losses on loans was $33.6 million, or 1.01 percent of gross loans at December 31, 2023, and $32.4 million, or 1.05 percent of gross loans at December 31, 2022. The provision for credit losses was $1.9 million for the fourth quarter of 2023 compared to a $500,000 credit for the fourth quarter of 2022. Management believes that the allowance for credit losses on loans was adequate at December 31, 2023 and December 31, 2022.

Non-interest income increased by $2.2 million to $3.2 million for the fourth quarter of 2023 from $1.1 million for the fourth quarter of 2022. The increase in total non-interest income was mainly related to gains on equity securities of $1.8 million and an increase in fees and service charges of $307,000.

Non-interest expense increased by $531,000, or 3.3 percent, to $16.6 million for the fourth quarter of 2023 from $16.0 million for the fourth quarter of 2022. The increase in such expenses for the fourth quarter of 2023 was primarily driven by higher regulatory assessment charges, higher salaries and employee benefits, and increased data processing expenses compared to the fourth quarter of 2022. The fourth quarter of 2023 salaries and benefits expense included a previously disclosed one-time payment of $1.17 million to Thomas Coughlin, the Company’s former President and Chief Executive Officer.

The income tax provision decreased by $1.0 million, or 28.6 percent, to $2.6 million for the fourth quarter of 2023 from $3.6 million for the fourth quarter of 2022. The consolidated effective tax rate was 29.9 percent for the fourth quarter of 2023 compared to 23.1 percent for the fourth quarter of 2022. 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.

Year-to-Date Income Statement Review

Net income decreased by $16.1 million, or 35.3 percent, to $29.5 million for the year ended December 31, 2023 from $45.6 million for the year ended December 31, 2022. The decrease in net income was driven by less net interest income and an increased provision for credit losses on loans being recorded.

Net interest income decreased by $9.9 million, or 8.7 percent, to $104.1 million for the year of 2023 from $113.9 million for the year of 2022. The decrease in net interest income resulted from a $66.8 million increase in interest expense, offset by an increase of $56.9 million in interest income.

The $56.9 million increase in interest income to $188.4 million for the twelve months of 2023, was a 43.3 percent increase from $131.4 million for the twelve months of 2022. The average balance of interest-earning assets increased $641.0 million, or 21.3 percent, to $3.652 billion for the twelve months of 2023, from $3.011 billion for the twelve months of 2022, while the average yield increased 79 basis points to 5.16 percent from 4.37 percent for the same comparable period. The increase in the average balance of interest-earning assets and in interest income mainly related to an increase in the average balance of loans receivable of $654.6 million to $3.281 billion for the twelve months of 2023, from $2.627 billion for the twelve months of 2022.

The $66.8 million increase in interest expense to $84.3 million for the twelve months of 2023, was a 381.8 percent increase from $17.5 million for the 2022 comparable period. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 214 basis points to 2.93 percent for the twelve months of 2023, from 0.79 percent for the twelve months of 2022, and an increase in the average balance of interest-bearing liabilities of $667.5 million, or 30.3 percent, to $2.873 billion from $2.206 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 twelve months of 2023 compared to the same period in 2022.

Net interest margin was 2.85 percent for the twelve months of 2023, compared to 3.78 percent for the twelve 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 twelve months of 2023, the Company recognized $704,000 in net-charge offs compared to $1.7 million in net-charge offs for the same period in 2022.

Non-interest income increased by $2.5 million to $4.1 million for the twelve months of 2023 from $1.6 million for the twelve months of 2022. The improvement in total non-interest income was mainly related to a $2.9 million decrease in the realized and unrealized losses on equity securities. The realized and unrealized losses on equity securities are based on market conditions.

Non-interest expense increased by $5.1 million, or 9.2 percent, to $60.6 million for the twelve months of 2023 from $55.5 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 2023 salaries and benefits expense included the payment to Mr. Coughlin described above.

The income tax provision decreased by $5.5 million or 31.7 percent, to $12.0 million for the twelve months of 2023 from $17.5 million for the same period in 2022. The decrease in the income tax provision was a result of the lower taxable income for the twelve months ended December 31, 2023 compared to the same period in 2022. The consolidated effective tax rate was 28.9 percent for the twelve months of 2023 compared to 27.8 percent for the twelve months of 2022.

Asset Quality

The Bank had non-accrual loans totaling $18.8 million, or 0.57 percent, of gross loans at December 31, 2023, as compared to $5.1 million, or 0.17 percent, of gross loans at December 31, 2022. The allowance for credit losses was $33.6 million, or 1.01 percent of gross loans at December 31, 2023, and $32.4 million, or 1.05 percent of gross loans at December 31, 2022. The allowance for credit losses was 178.9 percent of non-accrual loans at December 31, 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 twenty-four 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 factor 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 and capital 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 future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability to effectively attract and deploy deposits; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levels and slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios; the credit risk associated with our loan portfolio; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in our ability to access cost-effective funding; deposit flows; legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, rates and regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in the securities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to retain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatory requirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere in this report, 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, in Part II, Item 1A of our quarterly reports on Form 10-Q, 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.

Contact:Michael Shriner, President & CEOJawad Chaudhry, EVP & CFO(201) 823-0700

	Statements of Income - Three Months Ended,
	December 31, 2023		September 30, 2023			December 31, 2022			Dec 31, 2023 vs. Sept 30, 2023			Dec 31, 2023 vs. Dec 31, 2022
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	43,893	$	44,133		$	36,173		-0.5	%		21.3	%
Mortgage-backed securities		293		217			185		35.0	%		58.4	%
Other investment securities		991		1,045			1,177		-5.2	%		-15.8	%
FHLB stock and other interest-earning assets		4,527		3,672			1,321		23.3	%		242.7	%
Total interest and dividend income		49,704		49,067			38,856		1.3	%		27.9	%
Interest expense:
Deposits:
Demand		5,015		4,556			2,410		10.1	%		108.1	%
Savings and club		177		182			118		-2.7	%		50.0	%
Certificates of deposit		13,308		10,922			3,973		21.8	%		235.0	%
		18,500		15,660			6,501		18.1	%		184.6	%
Borrowings		7,282		7,727			2,174		-5.8	%		235.0	%
Total interest expense		25,782		23,387			8,675		10.2	%		197.2	%
Net interest income		23,922		25,680			30,181		-6.8	%		-20.7	%
Provision (benefit) for credit losses		1,927		2,205			(500	)	-12.6	%		-485.4	%
Net interest income after provision (benefit) for credit losses		21,995		23,475			30,681		-6.3	%		-28.3	%
Non-interest income (loss):
Fees and service charges		1,445		1,349			1,138		7.1	%		27.0	%
Gain on sales of loans		11		19			3		-42.1	%		266.7	%
Gain on sale of other real estate owned		77		-			-		-			-
Realized and unrealized gain (loss) on equity investments		1,029		(494	)		(723	)	-308.3	%		-242.3	%
BOLI income		597		466			584		28.1	%		2.2	%
Other		69		66			60		4.5	%		15.0	%
Total non-interest income		3,228		1,406			1,062		129.6	%		204.0	%
Non-interest expense:
Salaries and employee benefits		7,974		7,524			7,626		6.0	%		4.6	%
Occupancy and equipment		2,606		2,622			2,651		-0.6	%		-1.7	%
Data processing and communications		1,721		1,787			1,579		-3.7	%		9.0	%
Professional fees		987		560			2,169		76.3	%		-54.5	%
Director fees		274		274			261		0.0	%		5.0	%
Regulatory assessment fees		1,142		1,111			431		2.8	%		165.0	%
Advertising and promotions		403		317			260		27.1	%		55.0	%
Other real estate owned, net		4		1			4		300.0	%		0.0	%
Other		1,457		1,267			1,056		15.0	%		38.0	%
Total non-interest expense		16,568		15,463			16,037		7.1	%		3.3	%
Income before income tax provision		8,655		9,418			15,706		-8.1	%		-44.9	%
Income tax provision		2,593		2,707			3,634		-4.2	%		-28.6	%
Net Income		6,062		6,711			12,072		-9.7	%		-49.8	%
Preferred stock dividends		182		173			172		5.2	%		5.6	%
Net Income available to common stockholders	$	5,880	$	6,538		$	11,900		-10.1	%		-50.6	%
Net Income per common share-basic and diluted
Basic	$	0.35	$	0.39		$	0.70		-10.3	%		-50.5	%
Diluted	$	0.35	$	0.39		$	0.69		-10.2	%		-49.4	%
Weighted average number of common shares outstanding
Basic		16,876		16,830			16,916		0.3	%		-0.2	%
Diluted		16,884		16,854			17,289		0.2	%		-2.3	%

	Statements of Income - Twelve Months Ended,
	December 31, 2023			December 31, 2022			Dec 31, 2023 vs. Dec 31, 2022
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	169,559		$	123,577		37.2	%
Mortgage-backed securities		880			564		56.0	%
Other investment securities		4,226			4,167		1.4	%
FHLB stock and other interest-earning assets		13,695			3,133		337.1	%
Total interest and dividend income		188,360			131,441		43.3	%
Interest expense:
Deposits:
Demand		16,915			5,283		220.2	%
Savings and club		620			449		38.1	%
Certificates of deposit		39,157			6,889		468.4	%
		56,692			12,621		349.2	%
Borrowings		27,606			4,875		466.3	%
Total interest expense		84,298			17,496		381.8	%
Net interest income		104,062			113,945		-8.7	%
Provision (benefit) for credit losses		6,104			(3,075	)	-298.5	%
Net interest income after provision (benefit) for credit losses		97,958			117,020		-16.3	%
Non-interest income:
Fees and service charges		5,334			4,816		10.8	%
Gain on sales of loans		36			129		-72.1	%
Gain on sales of other real estate owned		77			-		-
Realized and unrealized loss on equity investments		(3,361	)		(6,269	)	-46.4	%
BOLI income		1,751			2,671		-34.4	%
Other		251			248		1.2	%
Total non-interest income		4,088			1,595		156.3	%
Non-interest expense:
Salaries and employee benefits		30,827			28,021		10.0	%
Occupancy and equipment		10,340			10,627		-2.7	%
Data processing and communications		6,968			6,033		15.5	%
Professional fees		2,735			3,766		-27.4	%
Director fees		1,083			1,253		-13.6	%
Regulatory assessments		3,585			1,243		188.4	%
Advertising and promotions		1,348			941		43.3	%
Other real estate owned, net		7			10		-30.0	%
Other		3,698			3,611		2.4	%
Total non-interest expense		60,591			55,505		9.2	%
Income before income tax provision		41,455			63,110		-34.3	%
Income tax provision		11,972			17,531		-31.7	%
Net Income		29,483			45,579		-35.3	%
Preferred stock dividends		702			796		-11.9	%
Net Income available to common stockholders	$	28,781		$	44,783		-35.7	%
Net Income per common share-basic and diluted
Basic	$	1.71		$	2.64		-35.4	%
Diluted	$	1.70		$	2.58		-34.1	%
Weighted average number of common shares outstanding
Basic		16,870			16,969		-0.6	%
Diluted		16,932			17,349		-2.4	%

Statements of Financial Condition	December 31, 2023			September 30, 2023			December 31, 2022			December 31, 2023 vs. September 30, 2023		December 31, 2023 vs. December 31, 2022
ASSETS	(In Thousands, Unaudited)
Cash and amounts due from depository institutions	$	16,597		$	16,772		$	11,520		-1.0	%	44.1	%
Interest-earning deposits		262,926			235,144			217,839		11.8	%	20.7	%
Total cash and cash equivalents		279,523			251,916			229,359		11.0	%	21.9	%
Interest-earning time deposits		735			735			735		-		-
Debt securities available for sale		87,769			86,172			91,715		1.9	%	-4.3	%
Equity investments		9,093			8,272			17,686		9.9	%	-48.6	%
Loans held for sale		1,287			472			658		172.7	%	95.6	%
Loans receivable, net of allowance for credit losses
of $33,608, $31,914 and $32,373, respectively		3,279,708			3,285,727			3,045,331		-0.18	%	7.70	%
Federal Home Loan Bank of New York stock, at cost		24,917			31,629			20,113		-21.2	%	23.9	%
Premises and equipment, net		13,057			13,363			10,508		-2.3	%	24.3	%
Accrued interest receivable		16,072			16,175			13,455		-0.6	%	19.5	%
Other real estate owned		-			75			75		-100	%	-100	%
Deferred income taxes		18,213			16,749			16,462		8.7	%	10.6	%
Goodwill and other intangibles		5,253			5,288			5,382		-0.7	%	-2.4	%
Operating lease right-of-use asset		12,935			12,953			13,520		-0.1	%	-4.3	%
Bank-owned life insurance ("BOLI")		73,406			72,810			71,656		0.8	%	2.4	%
Other assets		10,429			9,784			9,538		6.6	%	9.3	%
Total Assets	$	3,832,397		$	3,812,120		$	3,546,193		0.5	%	8.1	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits	$	536,264		$	523,912		$	613,910		2.4	%	-12.6	%
Interest bearing deposits		2,442,816			2,295,644			2,197,697		6.4	%	11.2	%
Total deposits		2,979,080			2,819,556			2,811,607		5.7	%	6.0	%
FHLB advances		472,811			622,674			382,261		-24.1	%	23.7	%
Subordinated debentures		37,624			37,624			37,508		0.0	%	0.3	%
Operating lease liability		13,315			13,318			13,859		-0.0	%	-3.9	%
Other liabilities		15,512			15,312			9,704		1.3	%	59.9	%
Total Liabilities		3,518,342			3,508,484			3,254,939		0.3	%	8.1	%
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000 shares authorized		-			-			-		-		-
Additional paid-in capital preferred stock		25,043			20,783			21,003		20.5	%	19.2	%
Common stock: no par value, 40,000 shares authorized		-			-			-		0.0	%	0.0	%
Additional paid-in capital common stock		198,923			198,097			196,164		0.4	%	1.4	%
Retained earnings		135,927			132,729			115,109		2.4	%	18.1	%
Accumulated other comprehensive loss		(7,491	)		(9,626	)		(6,491	)	-22.2	%	15.4	%
Treasury stock, at cost		(38,347	)		(38,347	)		(34,531	)	0.0	%	11.1	%
Total Stockholders' Equity		314,055			303,636			291,254		3.4	%	7.8	%
Total Liabilities and Stockholders' Equity	$	3,832,397		$	3,812,120		$	3,546,193		0.5	%	8.1	%
Outstanding common shares		16,848			16,848			16,931

	Three Months Ended December 31,
		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)	$	3,311,946	$	43,893	5.30	%		$	2,939,281	$	36,173	4.92	%
Investment Securities		93,638		1284	5.48	%			110,142		1,362	4.95	%
FHLB stock and other interest-earning assets		323,064		4,527	5.61	%			157,807		1,321	3.35	%
Total Interest-earning assets		3,728,648		49,704	5.33	%			3,207,230		38,856	4.85	%
Non-interest-earning assets		124,809							110,701
Total assets	$	3,853,457						$	3,317,931
Interest-bearing liabilities:
Interest-bearing demand accounts	$	578,890	$	2,184	1.51	%		$	729,160	$	1,295	0.71	%
Money market accounts		359,366		2,832	3.15	%			345,343		1,114	1.29	%
Savings accounts		288,108		177	0.25	%			334,394		118	0.14	%
Certificates of Deposit		1,140,656		13,307	4.67	%			734,216		3,974	2.17	%
Total interest-bearing deposits		2,367,020		18,500	3.13	%			2,143,112		6,501	1.21	%
Borrowed funds		622,860		7,282	4.68	%			239,252		2,174	3.63	%
Total interest-bearing liabilities		2,989,880		25,782	3.45	%			2,382,364		8,675	1.46	%
Non-interest-bearing liabilities		557,156							651,408
Total liabilities		3,547,036							3,033,772
Stockholders' equity		306,420							284,159
Total liabilities and stockholders' equity	$	3,853,457						$	3,317,931
Net interest income			$	23,922						$	30,181
Net interest rate spread(1)					1.88	%						3.39	%
Net interest margin(2)					2.57	%						3.76	%
(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.

	Year Ended December 31,
		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)	$	3,281,334	$	169,559		5.17	%		$	2,626,710	$	123,577		4.70	%
Investment Securities		100,000		5,106		5.11	%			109,604		4,731		4.32	%
FHLB stock and other interest-earning assets		270,659		13,695		5.06	%			274,649		3,133		1.14	%
Total Interest-earning assets		3,651,993		188,360		5.16	%			3,010,963		131,441		4.37	%
Non-interest-earning assets		123,652								106,712
Total assets	$	3,775,645							$	3,117,675
Interest-bearing liabilities:
Interest-bearing demand accounts	$	658,023	$	8,426		1.28	%		$	751,708	$	2,970		0.40	%
Money market accounts		334,353		8,489		2.54	%			350,207		2,313		0.66	%
Savings accounts		305,778		620		0.20	%			340,232		449		0.13	%
Certificates of Deposit		980,617		39,157		3.99	%			614,346		6,889		1.12	%
Total interest-bearing deposits		2,278,771		56,692		2.49	%			2,056,494		12,621		0.61	%
Borrowed funds		594,564		27,606		4.64	%			149,354		4,875		3.26	%
Total interest-bearing liabilities		2,873,335		84,298		2.93	%			2,205,848		17,496		0.79	%
Non-interest-bearing liabilities		602,691								636,216
Total liabilities		3,476,026								2,842,064
Stockholders' equity		299,618								275,611
Total liabilities and stockholders' equity	$	3,775,644							$	3,117,675
Net interest income			$	104,062							$	113,945
Net interest rate spread(1)						2.22	%							3.57	%
Net interest margin(2)						2.85	%							3.78	%
(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.

	Financial Condition data by quarter
	Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
	(In thousands, except book values)
Total assets	$	3,832,397		$	3,812,120		$	3,872,853		$	3,763,056		$	3,546,193
Cash and cash equivalents		279,523			251,916			273,212			261,075			229,359
Securities		96,862			94,444			100,473			101,446			109,401
Loans receivable, net		3,279,708			3,285,727			3,319,721			3,231,864			3,045,331
Deposits		2,979,080			2,819,556			2,885,721			2,867,209			2,811,607
Borrowings		510,435			660,298			660,160			569,965			419,769
Stockholders’ equity		314,055			303,636			299,623			297,618			291,254
Book value per common share1	$	17.15		$	16.79		$	16.60		$	16.38		$	15.96
Tangible book value per common share2	$	16.84		$	16.48		$	16.28		$	16.07		$	15.65
	Operating data by quarter
	Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
	(In thousands, except for per share amounts)
Net interest income	$	23,922		$	25,680		$	26,989		$	27,471		$	30,181
Provision (benefit) for credit losses		1,927			2,205			1,350			622			(500	)
Non-interest income (loss)		3,228			1,406			1,118			(1,664	)		1,062
Non-interest expense		16,568			15,463			14,706			13,854			16,037
Income tax expense		2,593			2,707			3,447			3,225			3,634
Net income	$	6,062		$	6,711		$	8,604		$	8,106		$	12,072
Net income per diluted share	$	0.35		$	0.39		$	0.50		$	0.46		$	0.69
Common Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
	Financial Ratios(3)
	Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
Return on average assets		0.63	%		0.70	%		0.90	%		0.90	%		1.46	%
Return on average stockholders' equity		7.91	%		8.92	%		11.57	%		11.05	%		16.99	%
Net interest margin		2.57	%		2.78	%		2.92	%		3.15	%		3.76	%
Stockholders' equity to total assets		8.19	%		7.97	%		7.74	%		7.91	%		8.21	%
Efficiency Ratio4		61.02	%		57.09	%		52.32	%		53.68	%		51.33	%
	Asset Quality Ratios
	Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
	(In thousands, except for ratio %)
Non-Accrual Loans	$	18,783		$	7,931		$	5,696		$	5,058		$	5,109
Non-Accrual Loans as a % of Total Loans		0.57	%		0.24	%		0.17	%		0.16	%		0.17	%
ACL as % of Non-Accrual Loans		178.9	%		402.4	%		530.3	%		571.0	%		633.6	%
Individually Analyzed Loans		54,019			35,868			28,250			17,585			28,272
Classified Loans		85,727			42,807			28,250			17,585			17,816
(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 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
	(In thousands)
Residential one-to-four family	$	248,295		$	251,845		$	250,345		$	246,683		$	250,123
Commercial and multi-family		2,434,115			2,444,887			2,490,883			2,466,932			2,345,229
Construction		192,816			185,202			179,156			162,553			144,931
Commercial business		372,202			370,512			368,948			327,598			282,007
Home equity		66,331			66,046			61,595			58,822			56,888
Consumer		3,643			3,647			3,994			3,383			3,240
	$	3,317,402		$	3,322,139		$	3,354,921		$	3,265,971		$	3,082,418
Less:
Deferred loan fees, net		(4,086	)		(4,498	)		(4,995	)		(5,225	)		(4,714	)
Allowance for credit losses		(33,608	)		(31,914	)		(30,205	)		(28,882	)		(32,373	)
Total loans, net	$	3,279,708		$	3,285,727		$	3,319,721		$	3,231,864		$	3,045,331
	Non-Accruing Loans in Portfolio by quarter
	Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
	(In thousands)
Residential one-to-four family	$	270		$	178		$	178		$	237		$	243
Commercial and multi-family		8,684			3,267			-			340			346
Construction		4,292			2,886			4,145			3,217			3,180
Commercial business		5,491			1,600			1,373			1,264			1,340
Home equity		46			-			-			-			-
Total:	$	18,783		$	7,931		$	5,696		$	5,058		$	5,109
	Distribution of Deposits by quarter
	Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
	(In thousands)
Demand:
Non-Interest Bearing	$	536,264		$	523,912		$	620,509		$	604,935		$	613,910
Interest Bearing		564,912			574,577			714,420			686,576			757,614
Money Market		370,934			348,732			328,543			361,558			305,556
Sub-total:	$	1,472,110		$	1,447,221		$	1,663,472		$	1,653,069		$	1,677,080
Savings and Club		284,273			293,962			307,435			319,131			329,753
Certificates of Deposit		1,222,697			1,078,373			914,814			895,009			804,774
Total Deposits:	$	2,979,080		$	2,819,556		$	2,885,721		$	2,867,209		$	2,811,607

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
	Tangible Book Value per Share
	Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
	(In thousands, except per share amounts)
Total Stockholders' Equity	$	314,055		$	303,636		$	299,623		$	297,618		$	291,254
Less: goodwill		5,253			5,253			5,253			5,253			5,253
Less: preferred stock		25,043			20,783			21,003			21,003			21,003
Total tangible common stockholders' equity		283,759			277,601			273,368			271,363			264,999
Shares common shares outstanding		16,848			16,848			16,788			16,884			16,931
Book value per common share	$	17.15		$	16.79		$	16.60		$	16.38		$	15.96
Tangible book value per common share	$	16.84		$	16.48		$	16.28		$	16.07		$	15.65
	Efficiency Ratios
	Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
	(In thousands, except for ratio %)
Net interest income	$	23,922		$	25,680		$	26,989		$	27,471		$	30,181
Non-interest income (loss)		3,228			1,406			1,118			(1,664	)		1,062
Total income		27,150			27,086			28,107			25,807			31,243
Non-interest expense		16,568			15,463			14,706			13,854			16,037
Efficiency Ratio		61.02	%		57.09	%		52.32	%		53.68	%		51.33	%