BCB Bancorp, Inc. Earns $10.0 Million in First Quarter
BCB Bancorp, Inc. Earns .0 Million in First Quarter

BAYONNE, N.J., April 21, 2022 (GLOBE NEWSWIRE) — BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $10.0 million, net of unrealized losses on equity securities, for the first quarter of 2022, compared to $10.8 million in the fourth quarter of 2021, and $7.1 million for the first quarter of 2021. Earnings per diluted share for the first quarter of 2022 were $0.56, compared to $0.61 in the preceding quarter and $0.40 in the first quarter of 2021.

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 May 16, 2022 to common shareholders of record on May 2, 2022.

“Our strong financial performance for the first quarter of 2022 is a direct result of lower operating expenses, robust growth in loans and deposits, and strong asset quality metrics,” stated Thomas Coughlin, President and Chief Executive Officer. “Additionally, our approach of managing our funding costs helped to keep our net interest margin stable in the first quarter of 2022, compared to the first quarter a year ago. We are well-positioned for rising interest rates with a strong low-cost core deposit base and ample on-balance sheet liquidity to support the Bank’s substantial loan pipeline. Our approach of consistently delivering outstanding service and value to our customers and communities while holding fast to our performance objectives will continue to result in value to our shareholders and other constituents as we look to the quarters ahead.”

“Due to the continued, solid performance of our loan portfolio during the current quarter, economic improvements in our markets, and a significant reduction in non-accrual loans, we recorded a credit to the loan loss provision of $2.6 million during the first quarter of 2022. This compared to a $1.9 million provision for loan losses in the first quarter a year ago. Our non-accrual loans to total loans ratio decreased to 0.38% at March 31, 2022, from 0.62% a year ago, while our level of total impaired and classified loans improved to $41.0 million and $29.9 million, from $67.3 million and $56.2 million, respectively, at March 31, 2021,” said Coughlin.

“Our strategy of maintaining a relatively flat level of loan portfolio growth during the pandemic has allowed us to grow our capital steadily through retained earnings while limiting the amount of loans booked in periods prior to the current rising rate environment. We are excited and ready to begin expanding now that we are moving further away from the worst of the pandemic and have recorded net loan growth of 3.9% for the first quarter. Given the strong loan demand that we are experiencing and the size of our pipeline, we expect our earnings trend to continue increasing as rates rise,” said Coughlin.

Executive Summary

  • The Company’s Board of Directors has declared a regular quarterly cash dividend of $0.16 per share, payable on May 16, 2022 to common shareholders of record on May 2, 2022.
  • Net income was $10.0 million in the first quarter of 2022, compared to $10.8 million in the prior quarter, and $7.1 million in the first quarter a year ago.
  • Earnings per diluted share were $0.56 in the first quarter of 2022, compared to $0.61 in the prior quarter, and $0.40 in the first quarter of 2021.
  • Net interest margin was 3.46 percent for the first quarter of 2022, compared to 3.44 percent for the fourth quarter of 2021, and 3.48 percent for the first quarter of 2021.
    • Total cost of interest-bearing liabilities decreased 9 basis points to 0.50 percent for the first quarter of 2022, compared to 0.59 percent for the fourth quarter of 2021, and decreased 35 basis points from 0.85 percent for the first quarter of 2021.
    • The interest rate spread increased by 4 basis points to 3.32 percent for the first quarter of 2022, compared to 3.28 percent for the fourth quarter of 2022, and increased 2 basis points from 3.30 percent for the first quarter of 2021.
  • The efficiency ratio for the first quarter was 53.0 percent compared to 49.4 percent in the prior quarter, and 53.2 percent in the first quarter of 2021.
  • The annualized return on average assets ratio for the first quarter was 1.33 percent, compared to 1.42 percent in the prior quarter, and 1.01 percent in the first quarter of 2021.
  • The annualized return on average equity ratio for the first quarter was 14.7 percent, compared to 16.3 percent in the prior quarter, and 11.4 percent in the first quarter of 2021.
  • The provision for loan losses decreased by $4.4 million, to a credit of $2.6 million for the first quarter of 2022, compared to a provision for loan losses of $1.9 million for the first quarter of 2021.
  • Allowance for loan losses as a percentage of non-accrual loans was 368.1 percent at March 31, 2022, compared to 249.3 percent for the prior quarter and 246.3 percent at March 31, 2021, as total non-accrual loans decreased to $9.2 million at March 31, 2022, from $14.9 million for the prior quarter and $14.4 million at March 31, 2021.
  • Total loans receivable were $2.396 billion at March 31, 2022, up from $2.296 billion at March 31, 2021.
  • Total deposits were $2.631 billion at March 31, 2022, up from $2.404 billion at March 31, 2021.

Balance Sheet Review

Total assets increased by $72.8 million, or 2.5 percent, to $3.040 billion at March 31, 2022, from $2.968 billion at December 31, 2021. The increase in total assets was mainly related to increases in total loans partially offset by decreases in cash and cash equivalents.

Total cash and cash equivalents decreased by $15.0 million, or 3.6 percent, to $396.7 million at March 31, 2022, from $411.6 million at December 31, 2021. This decrease was primarily due to an increase in loans, partly offset by an increase in deposits.

Loans receivable, net, increased by $91.0 million, or 3.95 percent, to $2.396 billion at March 31, 2022, from $2.305 billion at December 31, 2021. Total loan increases for the first three months of 2022 included increases of $84.5 million in commercial real estate and multi-family loans, $8.6 million in residential one-to-four family loans, $7.0 million in commercial business loans, and $1.7 million in home equity loans, partly offset by decreases of $12.9 million in construction loans, and $1.0 million in consumer loans. The allowance for loan losses decreased $3.1 million to $34.0 million, or 368.1 percent of non-accruing loans and 1.40 percent of gross loans, at March 31, 2022, as compared to an allowance for loan losses of $37.1 million, or 249.3 percent of non-accruing loans and 1.58 percent of gross loans, at December 31, 2021.

Total investment securities decreased by $2.8 million, or 2.5 percent, to $107.6 million at March 31, 2022, from $110.4 million at December 31, 2021, representing repayments, calls and maturities, and sales of $1.2 million, partly offset by purchases of $7.5 million.

Deposit liabilities increased by $69.8 million, or 2.7 percent, to $2.631 billion at March 31, 2022, from $2.561 billion at December 31, 2021. Total increases for the three months ended March 31, 2022, included $55.8 million in NOW deposit accounts, $33.2 million in non-interest-bearing deposit accounts, $17.2 million in money market checking accounts, and $11.8 million in savings and club accounts. The increase in deposits was partly offset by a decrease of $48.2 million in certificates of deposit, including listing service and brokered deposit accounts. The weighted average interest rate of certificates of deposit was 0.64 percent at March 31, 2022 and 0.72 percent at December 31, 2021.

Debt obligations remained relatively flat at $109.2 million at March 31, 2022, and $109.0 million at December 31, 2021, and consisted of both Federal Home Loan Bank (“FHLB”) borrowings and subordinated debt balances. The weighted average interest rate of FHLB advances was 1.39 percent at March 31, 2022, and December 31, 2021. The fixed interest rate of our subordinated debt balances was 5.625 percent at March 31, 2022, and December 31, 2021.

Stockholders’ equity increased by $2.1 million, or 0.8 percent, to $276.2 million at March 31, 2022, from $274.0 million at December 31, 2021. The increase was primarily attributable to the increase in retained earnings of $7.0 million, or 8.6 percent, to $88.1 million at March 31, 2022, from $81.2 million at December 31, 2021, related to the net effect of net income less dividends paid for the three months ended March 31, 2022. Additional paid-in-capital for preferred stock decreased by $2.7 million to $26.2 million at March 31, 2022, from $28.9 million at December 31, 2021, primarily related to the redemption of $5.3 million of the Company’s then-outstanding Series G 6.0% preferred stock, partially offset by the issuance of $2.6 million of Series I 3.0% preferred stock. Accumulated other comprehensive income decreased by $2.4 million over the prior year, based upon unfavorable market conditions related to the Company’s available for sale debt securities.

First Quarter 2022 Income Statement Review

Net interest income increased by $1.5 million, or 6.4 percent, to $25.1 million for the first quarter of 2022, from $23.6 million for the first quarter of 2021. The increase in net interest income resulted from a $1.9 million decrease in interest expense, partly offset by a decrease of $351,000 in interest income.

Interest income decreased by $351,000, or 1.3 percent, to $27.7 million for the first quarter of 2022, from $28.1 million for the first quarter of 2021. The average balance of interest-earning assets increased $194.9 million, or 7.2 percent, to $2.900 billion for the first quarter of 2022, from $2.705 billion for the first quarter of 2021, while the average yield decreased 33 basis points to 3.82 percent for the first quarter of 2022, from 4.15 percent for the first quarter of 2021. The increase in the average balance of interest-earning deposits mainly relates to an increase in the Company’s level of average cash balances for the first quarter of 2022, as compared to the first quarter of 2021, relating to increases in the average balances of deposits.

The decrease in interest income mainly related to a decrease in the average yield on loans of 13 basis points to 4.49 percent for the first quarter of 2022, from 4.62 percent for the first quarter of 2021. The decrease in the average yield on loans was result of loan payoffs that occurred during the low interest rate environment of 2021. The decrease in total interest income was partly offset by an increase in interest income on investment securities, mainly related to an increase in the average rate of 60 basis points to 4.06 percent for the first quarter of 2022, from 3.46 percent for the first quarter of 2021. Interest income on loans also included $147,000 of amortization of purchase credit fair value adjustments related to a prior acquisition for the first quarter of 2022, which added approximately three basis points to the average yield on interest earning assets.

Interest expense decreased by $1.9 million, or 41.2 percent, to $2.7 million for the first quarter of 2022, from $4.5 million for the first quarter of 2021. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 35 basis points to 0.50 percent for the first quarter of 2022, from 0.85 percent for the first quarter of 2021, as well as a decrease in the average balance of interest-bearing liabilities of $10.6 million, or 0.5 percent, to $2.109 billion for the first quarter of 2022, from $2.120 billion for the first quarter of 2021. The decrease in the average cost of funds primarily resulted from the low interest rate environment and the Company’s focus on managing funding costs.

Net interest margin was 3.46 percent for the first quarter of 2022, compared to 3.48 percent for the first quarter of 2021. The slight decrease in the net interest margin compared to the first quarter of 2021 was the result of a decrease in the average yield on loans based on the low interest rate environment of 2021 partly offset by a decrease in funding costs. “Higher core deposit balances resulted in a decrease in the cost of funding liabilities which positively affected our interest rate spread and net interest margin during the quarter. The Company’s interest rate spread increased by two basis points between the first quarter of 2021 and 2022,” said Coughlin. “While we manage our balance sheet to all credit cycles, we believe our balance sheet is especially well-positioned to take advantage of additional rate increases that are anticipated later this year.”

The provision for loan losses decreased by $4.4 million, to a credit of $2.6 million for the first quarter of 2022, from $1.9 million for the first quarter of 2021, primarily due to positive quantitative and qualitative factors related to the pandemic in the Company’s ALLL methodology. During the first quarter of 2022, the Company experienced $564,000 in net charge offs compared to $27,000 in net charge offs for the first quarter of 2021. The Bank had non-accrual loans totaling $9.2 million, or 0.38 percent of gross loans at March 31, 2022, as compared to $14.4 million, or 0.62 percent of gross loans at March 31, 2021. The allowance for loan losses was $34.0 million, or 1.40 percent of gross loans at March 31, 2022, and $35.5 million, or 1.52 percent of gross loans at March 31, 2021.

Noninterest income decreased by $2.6 million, or 130.8 percent, to an expense of $600,000 for the first quarter of 2022, from $2.0 million for first quarter of 2021. The decrease in total noninterest income was mainly related to an increase in the unrealized loss of equity securities and a lower gain on sale of loans, partly offset by an increase in other non-interest income. The unrealized loss on equity securities increased $2.5 million to $2.7 million for the first quarter of 2022, from $196,000 for the first quarter 2021. The unrealized gains or losses on equity securities are based on market conditions. Gains on sales of loans decreased by $209,000, or 76.3%, to $65,000 for the first quarter of 2022, from $274,000 for the first quarter of 2021. Factors considered when deciding to sell loans include market conditions, demand, and the loan portfolio. These decreases were partly offset by an increase in fees and service charge income resulting from servicing income, ATM, and other customer account fees.

Noninterest expense decreased by $624,000, or 4.6 percent, to $13.0 million for the first quarter of 2022, from $13.6 million for the first quarter of 2021. Salaries and employee benefits expense increased by $191,000, or 2.9 percent, to $6.7 million for the first quarter of 2022, from $6.5 million for the first quarter of 2021. The increase related to normal compensation increases, and was partly offset by fewer full-time equivalent employees. The number of full-time equivalent employees for the first quarter of 2022 was 303, as compared to 312 for the same period in 2021. Occupancy and equipment expense decreased by $258,000 or 8.7% to $2.7 million for the first quarter of 2022, from $3.0 million for the first quarter of 2021, largely related to building sanitation costs associated with the COVID-19 pandemic in the first quarter of 2021. Also, in the first quarter 2021, the Company recognized an expense of $540,000 for a loss on extinguishment of debt related to the prepayment of higher-cost FHLB borrowings. There was no comparable expense in the first quarter of 2022.

The income tax provision increased by $1.2 million, or 40.3 percent, to $4.1 million for the first quarter of 2022, from $2.9 million for the first quarter of 2021. The increase in the income tax provision was a result of higher taxable income for the first quarter of 2022, as compared with that same period for 2021. The consolidated effective tax rate for the first quarter of 2022 was 29.4 percent compared to 29.3 percent for the first quarter of 2021.

Asset Quality

The provision for loan losses decreased by $4.4 million, to a credit of $2.6 million for the first quarter of 2022, compared to $1.9 million for the first quarter of 2021. The decrease was primarily due to positive quantitative and qualitative factors related to the pandemic in the Company’s ALLL methodology. The Bank had non-accrual loans totaling $9.2 million, or 0.38 percent, of gross loans at March 31, 2022, as compared to $14.9 million, or 0.64 percent, of gross loans at December 31, 2021.

Performing troubled debt restructured (“TDR”) loans that were not included in non-accrual loans at March 31, 2022, were $14.7 million, compared to $12.4 million at December 31, 2021. Borrowers who are in financial difficulty and who have been granted concessions (excluding COVID-19 modifications) that may include interest rate reductions, term extensions, or payment alterations, are categorized as TDR loans.

The allowance for loan losses was $34.0 million, or 1.40 percent of gross loans at March 31, 2022, and $37.1 million, or 1.58 percent of gross loans at December 31, 2021. The allowance for loan losses was 368.1 percent of non-accrual loans at March 31, 2022, and 249.3 percent of non-accrual loans at December 31, 2021.

The COVID-19 pandemic has caused disruption to the global economy, but the extent and duration of the disruption remains uncertain. Management will continue to monitor any activity for loan deferment requests and delinquencies on a regular basis.

COVID-19 Response

With the global outbreak of COVID-19, the Company remains focused on protecting the health and well-being of its employees and the communities in which it operates while assuring the continuity of its business operations. 

The Company activated its dedicated pandemic team that proactively implemented its business continuity plans and has taken a variety of measures to ensure the ongoing availability of services, while taking health and safety measures, including enhanced cleaning and hygiene protocols in all of its facilities and remote work policies, where possible. To date, as a result of these business continuity measures, the Company has not experienced significant disruptions in its operations. 

  • Operational Initiatives  
    • Management meets on an as-needed basis and actively monitors guidance released by regulators, banking associations as well as state, federal and local government.
    • Most employees have returned to work, however social distancing is still encouraged for those that are unvaccinated.
    • Barriers are in place in branches and back offices to provide protection.
    • Branch and operational offices are cleaned and sanitized as needed and employees have access to masks, gloves and disinfectant.
    • Management provides updates to employees as needed.
    • The Call Center is open seven days a week to assist with customer inquiries.
    • Branch offices are open; however, customers have the ability to make an appointment if they choose. The Bank is encouraging customers to utilize the ATM, drive-through and electronic banking services whenever possible.
    • The Bank worked with a local provider in April/May 2021 to have the vaccine administered at one of the bank’s locations.
  • Allowance for Loan Losses (“ALLL”)
    • The Bank lowered its loan loss reserves through a $2.6 million credit in loan loss provisions for the first quarter of 2022, as compared to $1.9 million of provision expense for the same period last year. The Bank considered qualitative factors, such as changes in underwriting policies, current economic conditions, delinquency statistics, the adequacy of the underlying collateral and the financial strength of borrowers in arriving at its loan loss provision. All of these factors are likely to be affected by the COVID-19 pandemic. Loan categories for specific business types were stressed due to rising delinquencies within those market sectors (restaurants, industrial, and mixed use/warehouse) to determine the potential for collateral shortfalls. At March 31, 2022, the stress test resulted in collateral shortfalls and costs associated with foreclosure that were lower than the previous three quarters by approximately $3.0 million. The impact of COVID-19 is likely to be felt over the next several quarters and adjustments to the ALLL may be required as the full impact of COVID-19 on the borrowers’ capacity to make payments and the value of the underlying collateral becomes known.
  • Paycheck Protection Program (PPP)  
    • The Bank partnered with The Loan Source, Inc. and recognized $328,000 in referral fees for the second round of PPP loans in the three months ended March 31, 2021.
  • IT Changes
    • To protect the well-being of our staff and customers, the Company has set up resources for some employees to work from home. To facilitate the move, we allocated laptop computers to staff and enhanced our ability to access the network offsite. We have taken additional steps to minimize the increased risk of security breaches (including privacy breaches and cyber-attacks), given the increased number of employees working remotely.
  • Liquidity and Capital Resources
    • The Company was well positioned with adequate levels of cash and liquid assets as of March 31, 2022, as well as wholesale borrowing capacity of over $800 million. At March 31, 2022, the Company’s equity to assets ratio was 9.08 percent and the Bank is considered “well capitalized” under its regulatory requirements. The Company will continue to monitor the effects of COVID-19 in determining future cash dividends and any requirement for additional capital each quarter.

About BCB Bancorp, Inc.

Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has 29 branch offices in Bayonne, Carteret, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and three branches in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.

Forward-Looking Statements

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

In addition to factors previously disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”) and those identified elsewhere in this release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the inability to close loans in our pipeline; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; supply chain disruptions; customer acceptance of the Bank’s products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and actions of governmental agencies and legislative and regulatory actions and reforms.

As the result of COVID-19 pandemic or any similar future pandemic and the related adverse local and national economic consequences, the Company could be subject to any of the following additional risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:

  • demand for our products and services may decline, making it difficult to grow assets and income;
  • our allowance for loan losses may have to be increased if borrowers experience financial difficulties beyond any forbearance periods, which will adversely affect our net income;
  • the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us;
  • our cyber security risks are increased as the result of an increase in the number of employees working remotely;
  • we rely on third party vendors for certain services and the unavailability of a critical service due to the COVID-19 or any similar pandemic could have an adverse effect on us; and
  • civil unrest could occur in the communities that the Company serves.

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,        
  March 31, 2022 December 31, 2021 March 31, 2021 Mar. 31, 2022 vs. Dec. 31, 2021   Mar. 31, 2022 vs. Mar. 31, 2021  
Interest and dividend income: (In thousands, except per share amounts, Unaudited)        
   Loans, including fees $ 26,321   $ 26,987   $ 26,863   -2.5 %   -2.0 %  
   Mortgage-backed securities   159     148     206   7.4 %   -22.8 %  
   Other investment securities   948     929     784   2.0 %   20.9 %  
   FHLB stock and other interest earning assets   296     286     222   3.5 %   33.3 %  
     Total interest and dividend income   27,724     28,350     28,075   -2.2 %   -1.3 %  
               
Interest expense:              
Deposits:              
   Demand   758     928     1,198   -18.3 %   -36.7 %  
   Savings and club   108     129     118   -16.3 %   -8.5 %  
   Certificates of deposit   980     1,185     1,992   -17.3 %   -50.8 %  
    1,846     2,242     3,308   -17.7 %   -44.2 %  
   Borrowings   806     954     1,205   -15.5 %   -33.1 %  
       Total interest expense   2,652     3,196     4,513   -17.0 %   -41.2 %  
               
Net interest income   25,072     25,154     23,562   -0.3 %   6.4 %  
Provision (credit) for loan losses   (2,575 )   (985 )   1,865   161.4 %   -238.1 %  
               
Net interest income after provision for loan losses   27,647     26,139     21,697   5.8 %   27.4 %  
               
Non-interest income:              
   Fees and service charges   1,214     1,119     1,111   8.5 %   9.3 %  
   Gain on sales of loans   65     92     274   -29.3 %   -76.3 %  
   Realized and unrealized gain (loss) on equity investments   (2,685 )   151     (196 ) -1878.1 %   1269.9 %  
   BOLI income   755     757     701   -0.3 %   7.7 %  
   Other   51     489     60   -89.6 %   -15.0 %  
      Total non-interest income   (600 )   2,608     1,950   -123.0 %   -130.8 %  
               
Non-interest expense:              
   Salaries and employee benefits   6,736     6,842     6,545   -1.5 %   2.9 %  
   Occupancy and equipment   2,695     2,756     2,953   -2.2 %   -8.7 %  
   Data processing and communications   1,465     1,531     1,456   -4.3 %   0.6 %  
   Professional fees   494     473     412   4.4 %   19.9 %  
   Director fees   321     253     247   26.9 %   30.0 %  
   Regulatory assessment fees   304     317     376   -4.1 %   -19.1 %  
   Advertising and promotions   141     162     83   -13.0 %   69.9 %  
   Other real estate owned, net   1     23     4   -95.7 %   -75.0 %  
   Loss from extinguishment of debt       526     540   -100.0 %   -100.0 %  
   Other   802     824     967   -2.7 %   -17.1 %  
      Total non-interest expense   12,959     13,707     13,583   -5.5 %   -4.6 %  
               
Income before income tax provision   14,088     15,040     10,064   -6.3 %   40.0 %  
  Income tax provision   4,136     4,289     2,947   -3.6 %   40.3 %  
               
Net Income   9,952     10,751     7,117   -7.4 %   39.8 %  
  Preferred stock dividends   276     308     283   -10.5 %   -2.6 %  
Net Income available to common stockholders $ 9,676   $ 10,443   $ 6,834   -7.3 %   41.6 %  
               
Net Income per common share-basic and diluted              
  Basic $ 0.57   $ 0.61   $ 0.40   -6.6 %   42.5 %  
  Diluted $ 0.56   $ 0.61   $ 0.40   -8.5 %   39.5 %  
               
Weighted average number of common shares outstanding              
  Basic   16,980     17,063     17,115   -0.5 %   -0.8 %  
  Diluted   17,343     17,239     17,232   0.6 %   0.6 %  
               
Statements of Financial Condition March 31, 2022 December 31, 2021 March 31, 2021 Mar. 31, 2022 vs. Dec. 31, 2021 Mar. 31, 2022 vs. Mar. 31, 2021  
ASSETS          (In Thousands, Unaudited)      
Cash and amounts due from depository institutions $ 8,448   $ 9,606   $ 24,796   -12.1 % -65.9 %  
Interest-earning deposits   388,205     402,023     272,142   -3.4 % 42.6 %  
   Total cash and cash equivalents   396,653     411,629     296,938   -3.6 % 33.6 %  
             
Interest-earning time deposits   735     735     735        
Debt securities available for sale   86,307     85,186     93,582   1.3 % -7.8 %  
Equity investments   21,269     25,187     18,278   -15.6 % 16.4 %  
Loans held for sale   325     952     1,147   -65.9 % -71.7 %  
Loans receivable, net of allowance for loan losses            
   of $33,980, $37,119 and $35,477, respectively   2,395,930     2,304,942     2,296,434   3.95 % 4.33 %  
Federal Home Loan Bank of New York stock, at cost   6,128     6,084     8,920   0.7 % -31.3 %  
Premises and equipment, net   11,646     12,237     14,796   -4.8 % -21.3 %  
Accrued interest receivable   9,593     9,183     12,056   4.5 % -20.4 %  
Other real estate owned   75     75     414   0.0 % -81.9 %  
Deferred income taxes   13,016     12,959     13,239   0.4 % -1.7 %  
Goodwill and other intangibles   5,417     5,431     5,472   -0.3 % -1.0 %  
Operating lease right-of-use asset   11,883     12,457     14,328   -4.6 % -17.1 %  
Bank-owned life insurance (“BOLI”)   73,240     72,485     70,234   1.0 % 4.3 %  
Other assets   8,093     7,986     5,887   1.3 % 37.5 %  
    Total Assets $ 3,040,310   $ 2,967,528   $ 2,852,460   2.5 % 6.6 %  
             
LIABILITIES AND STOCKHOLDERS’ EQUITY            
             
LIABILITIES            
Non-interest bearing deposits $ 621,402   $ 588,207   $ 454,061   5.6 % 36.9 %  
Interest bearing deposits   2,009,773     1,973,195     1,950,074   1.9 % 3.1 %  
  Total deposits   2,631,175     2,561,402     2,404,135   2.7 % 9.4 %  
FHLB advances   71,848     71,711     133,298   0.2 % -46.1 %  
Subordinated debentures   37,333     37,275     37,101   0.2 % 0.6 %  
Operating lease liability   12,180     12,752     14,589   -4.5 % -16.5 %  
Other liabilities   11,615     10,364     9,883   12.1 % 17.5 %  
    Total Liabilities   2,764,151     2,693,504     2,599,006   2.6 % 6.4 %  
             
STOCKHOLDERS’ EQUITY            
Preferred stock: $0.01 par value, 10,000 shares authorized                  
Additional paid-in capital preferred stock   26,213     28,923     25,723   -9.4 % 1.9 %  
Common stock: no par value, 40,000 shares authorized                  
Additional paid-in capital common stock   194,222     193,927     192,633   0.2 % 0.8 %  
Retained earnings   88,132     81,171     62,777   8.6 % 40.4 %  
Accumulated other comprehensive (loss) income   (1,275 )   1,128     (349 ) -213.0 % 265.3 %  
Treasury stock, at cost   (31,133 )   (31,125 )   (27,330 ) 0.0 % 13.9 %  
    Total Stockholders’ Equity   276,159     274,024     253,454   0.8 % 9.0 %  
             
     Total Liabilities and Stockholders’ Equity $ 3,040,310   $ 2,967,528   $ 2,852,460   2.5 % 6.6 %  
             
Outstanding common shares   16,985     16,940     17,121        
             
  Three Months Ended March 31,
    2022       2021  
  Average Balance Interest Earned/Paid Average Yield/Rate (5)   Average Balance Interest Earned/Paid Average Yield/Rate (5)
  (Dollars in thousands)
Interest-earning assets:              
Loans Receivable (1) $ 2,343,845   $ 26,321 4.49 %   $ 2,326,230 $ 26,863 4.62 %
Investment Securities (2)   108,960     1107 4.06 %     114,461   990 3.46 %
FHLB stock and other interest-earning assets   447,080     296 0.26 %     264,308   222 0.34 %
   Total Interest-earning assets   2,899,885     27,724 3.82 %     2,704,999   28,075 4.15 %
Non-interest-earning assets   102,118           109,987    
   Total assets $ 3,002,003         $ 2,814,986    
Interest-bearing liabilities:              
Interest-bearing demand accounts $ 706,067   $ 398 0.23 %   $ 610,893 $ 757 0.50 %
Money market accounts   345,564     360 0.42 %     317,151   441 0.56 %
Savings accounts   336,575     108 0.13 %     302,741   118 0.16 %
Certificates of Deposit   611,813     980 0.64 %     682,975   1,992 1.17 %
   Total interest-bearing deposits   2,000,019     1,846 0.37 %     1,913,760   3,308 0.69 %
Borrowed funds   109,105     806 2.95 %     205,956   1,205 2.34 %
   Total interest-bearing liabilities   2,109,124     2,652 0.50 %     2,119,716   4,513 0.85 %
Non-interest-bearing liabilities   621,575           444,787    
   Total liabilities   2,730,699           2,564,503    
Stockholders’ equity   271,305           250,483    
   Total liabilities and stockholders’ equity $ 3,002,003         $ 2,814,986    
Net interest income   $ 25,072       $ 23,562  
Net interest rate spread(3)     3.32 %       3.30 %
Net interest margin(4)     3.46 %       3.48 %
               
(1) Excludes allowance for loan losses.              
(2) Includes Federal Home Loan Bank of New York stock.
(3)     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.
(4)     Net interest margin represents net interest income divided by average total interest-earning assets.
(5)     Annualized.              
               
  Financial Condition data by quarter
  Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
           
  (In thousands, except book values)
Total assets $ 3,040,310   $ 2,967,528   $ 2,983,787   $ 2,895,190   $ 2,852,460  
Cash and cash equivalents   396,653     411,629     442,938     328,257     296,938  
Securities   107,576     110,373     106,137     104,384     111,860  
Loans receivable, net   2,395,930     2,304,942     2,289,854     2,312,559     2,296,434  
Deposits   2,631,175     2,561,402     2,541,405     2,445,814     2,404,135  
Borrowings   109,181     108,986     155,790     165,595     170,399  
Stockholders’ equity   276,159     274,024     263,081     258,524     253,454  
Book value per common share1 $ 14.72   $ 14.47   $ 13.93   $ 13.63   $ 13.30  
Tangible book value per common share2 $ 14.41   $ 14.16   $ 13.62   $ 13.32   $ 12.99  
           
  Operating data by quarter
  Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
  (In thousands, except for per share amounts)
Net interest income $ 25,072   $ 25,154   $ 24,613   $ 24,064   $ 23,562  
Provision (credit ) for loan losses   (2,575 )   (985 )   680     2,295     1,865  
Non-interest income   -600     2,608     1,317     2,820     1,950  
Non-interest expense   12,959     13,707     13,528     13,157     13,583  
Income tax expense   4,136     4,289     3,400     3,382     2,947  
Net income $ 9,952   $ 10,751   $ 8,322   $ 8,050   $ 7,117  
Net income per diluted share $ 0.56   $ 0.61   $ 0.47   $ 0.45   $ 0.40  
Common Dividends declared per share $ 0.16   $ 0.16   $ 0.16   $ 0.14   $ 0.14  
           
  Financial Ratios3
  Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
Return on average assets   1.33 %   1.42 %   1.13 %   1.12 %   1.01 %
Return on average stockholder’s equity   14.67 %   16.25 %   12.84 %   12.60 %   11.37 %
Net interest margin   3.46 %   3.44 %   3.46 %   3.47 %   3.48 %
Stockholder’s equity to total assets   9.08 %   9.23 %   8.82 %   8.93 %   8.89 %
Efficiency Ratio4   52.95 %   49.37 %   52.17 %   48.94 %   53.24 %
           
  Asset Quality Ratios
  Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
  (In thousands, except for ratio %)
Non-Accrual Loans $ 9,232   $ 14,889   $ 20,725   $ 22,174   $ 14,405  
Non-Accrual Loans as a % of Total Loans   0.38 %   0.64 %   0.89 %   0.94 %   0.62 %
ALLL as % of Non-Accrual Loans   368.1 %   249.3 %   184.1 %   169.0 %   246.3 %
Impaired Loans   40,955     49,382     58,863     62,281     67,344  
Classified Loans   29,850     39,157     48,547     51,926     56,178  
           
(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  
  Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021  
    (In thousands)  
Residential one-to-four family $ 233,251   $ 224,534   $ 224,330   $ 229,365   $ 234,375    
Commercial and multi-family   1,804,815     1,720,174     1,739,976     1,714,848     1,700,113    
Construction   141,082     153,904     149,076     181,312     167,224    
Commercial business   198,216     191,139     161,416     172,129     177,340    
Home equity   52,279     50,469     52,109     53,333     53,360    
Consumer   2,726     3,717     2,730     459     851    
  $ 2,432,369   $ 2,343,937   $ 2,329,637   $ 2,351,446   $ 2,333,263    
Less:            
   Deferred loan fees, net   (2,459 )   (1,876 )   (1,627 )   (1,415 )   (1,352 )  
   Allowance for loan loss   (33,980 )   (37,119 )   (38,156 )   (37,472 )   (35,477 )  
             
Total loans, net $ 2,395,930   $ 2,304,942   $ 2,289,854   $ 2,312,559   $ 2,296,434    
             
  Non-Accruing Loans in Portfolio by quarter  
  Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021  
    (In thousands)  
             
Residential one-to-four family $ 278   $ 282   $ 455   $ 464   $ 701    
Commercial and multi-family   757     8,601     13,322     14,673     7,962    
Construction   2,954     2,847     2,787     2,787        
Commercial business   5,243     3,132     4,128     4,216     5,307    
Home equity       27     33     34     435    
Total: $ 9,232   $ 14,889   $ 20,725   $ 22,174   $ 14,405    
             
  Reconciliation of GAAP to Non-GAAP Financial Measures by quarter  
             
  Tangible Book Value per Share  
  Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021  
  (In thousands, except per share amounts)  
Total Stockholders’ Equity $ 276,159   $ 274,024   $ 263,081   $ 258,524   $ 253,454    
Less: goodwill   5,252     5,252     5,252     5,252     5,253    
Less: preferred stock   26,213     28,923     25,723     25,723     25,723    
Total tangible common stockholders’ equity   244,694     239,849     232,106     227,549     222,478    
Shares common shares outstanding   16,984     16,940     17,036     17,077     17,121    
Book value per common share $ 14.72   $ 14.47   $ 13.93   $ 13.63   $ 13.30    
Tangible book value per common share $ 14.41   $ 14.16   $ 13.62   $ 13.32   $ 12.99    
             
  Efficiency Ratios  
  Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021  
  (In thousands, except for ratio %)  
Net interest income $ 25,072   $ 25,154   $ 24,613   $ 24,064   $ 23,562    
Non-interest income   -600     2,608     1,317     2,820     1,950    
Total income   24,472     27,762     25,930     26,884     25,512    
Non-interest expense   12,959     13,707     13,528     13,157     13,583    
Efficiency Ratio   52.95 %   49.37 %   52.17 %   48.94 %   53.24 %  
             
             
             
  Distribution of Deposits by quarter  
  Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021  
  (In thousands)  
Demand:            
   Non-Interest Bearing $ 621,403   $ 588,207   $ 544,619   $ 492,014   $ 454,061    
   Interest Bearing   724,020     668,262     644,453     619,163     620,171    
   Money Market   354,302     337,126     351,508     344,512     335,440    
Sub-total: $ 1,699,725   $ 1,593,595   $ 1,540,580   $ 1,455,689   $ 1,409,672    
   Savings and Club   341,529     329,724     326,807     316,244     311,259    
   Certificates of Deposit   589,921     638,083     674,018     673,881     683,204    
Total Deposits: $ 2,631,175   $ 2,561,402   $ 2,541,405   $ 2,445,814   $ 2,404,135    
             

Thomas Coughlin,
President & CEO
Ryan Blake, COO
(201) 823-0700

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