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BCB Bancorp, Inc. Earns $8.1 Million in First Quarter 2023; Reports $0.46 EPS and 6.1 Percent Net Loan Growth
ソース: Nasdaq GlobeNewswire / 18 4 2023 07:30:01 America/Chicago
BAYONNE, N.J., April 18, 2023 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $8.1 million for the first quarter of 2023, compared to $12.1 million in the fourth quarter of 2022, and $10.0 million for the first quarter of 2022. Earnings per diluted share for the first quarter of 2023 were $0.46, compared to $0.69 in the preceding quarter and $0.56 in the first quarter of 2022. Net income and earnings per diluted share for the first quarter of 2023, adjusted for the unrealized losses on equity investments, were $10.4 million and $0.60, 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 May 19, 2023 to common shareholders of record on May 5, 2023.
“We posted another quarter of strong loan growth as we continued to onboard new relationships and customers that have become available to us from recent market disruptions. We are acutely aware of the liquidity challenges posed by the macroenvironment and remain very focused on maintaining a strong capital and liquidity position,” stated Thomas Coughlin, President and Chief Executive Officer. “In a persistently high rate environment, our customers have remained loyal to us and continue to book business with us. Our core deposits grew at an annualized rate of 7.1 percent during the quarter. Like many of our peers, the increasing cost of liquidity has pressured our net interest margin. While we believe that our net interest margin has stabilized, we remain focused on protecting our net interest income, which will benefit from higher-priced loan originations and from the upward repricing of the existing loan book.”
“On January 1, 2023, the Company implemented the Current Expected Credit Losses (“CECL”) methodology and the Day One CECL adjustment resulted in a $4.2 million reduction to our Allowance for Credit Losses (“ACL”) which further benefitted our capital (net of taxes). Our asset quality remains strong and the Bank’s loan portfolio continues to perform very well. Our non-accrual to total loans ratio decreased to 0.16 percent at March 31, 2023 from 0.17 percent at December 31, 2022 and 0.38 percent a year ago. Using the CECL methodology, we recorded a loan loss provision of $622,000 during the first quarter of 2023 compared to a credit to the loan loss provision of $500,000 during the fourth quarter of 2022 under the incurred loss methodology,” said Coughlin.
“We remain committed to building a strong franchise despite the current challenges and headwinds facing the banking industry. Our continued ability to hire talent, grow our balance sheet organically, and digitize our products and services will only further enhance the value of our Bank over time. We are well-positioned to come out stronger and more profitable on the other side of the current economic cycle,” said Coughlin.
Executive Summary
- Total deposits were $2.867 billion at March 31, 2023, up from $2.631 billion at March 31, 2022.
- Net interest margin was 3.15 percent for the first quarter of 2023, compared to 3.76 percent for the fourth quarter of 2022, and 3.46 percent for the first quarter of 2022.
- Total yield on interest-earning assets increased 1 basis point to 4.86 percent for the first quarter of 2023, compared to 4.85 percent for the fourth quarter of 2022, and increased 104 basis points from 3.82 percent for the first quarter of 2022.
- Total cost of interest-bearing liabilities increased 78 basis points to 2.24 percent for the first quarter of 2023, compared to 1.46 percent for the fourth quarter of 2022, and increased 174 basis points from 0.50 percent for the first quarter of 2022.
- The efficiency ratio for the first quarter was 53.7 percent compared to 51.3 percent in the prior quarter, and 53.0 percent in the first quarter of 2022.
- The annualized return on average assets ratio for the first quarter was 0.90 percent, compared to 1.46 percent in the prior quarter, and 1.33 percent in the first quarter of 2022.
- The annualized return on average equity ratio for the first quarter was 11.0 percent, compared to 17.0 percent in the prior quarter, and 14.7 percent in the first quarter of 2022.
- The provision for loan losses was $622,000 in the first quarter of 2023 compared to a credit for loan losses of $500,000 for the fourth quarter of 2022 and a credit for loan losses of $2.6 million for the first quarter of 2022.
- Allowance for credit losses as a percentage of non-accrual loans was 571.0 percent at March 31, 2023, compared to 633.6 percent for the prior quarter-end and 368.1 percent at March 31, 2022, as total non-accrual loans decreased to $5.06 million at March 31, 2023, from $5.11 million for the prior quarter and $9.23 million at March 31, 2022.
- Total loans receivable, net of allowance for credit losses, increased 34.9 percent to $3.232 billion at March 31, 2023, up from $2.396 billion at March 31, 2022.
Balance Sheet Review
Total assets increased by $216.9 million, or 6.1 percent, to $3.763 billion at March 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 $31.7 million, or 13.8 percent, to $261.1 million at March 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 $186.5 million, or 6.1 percent, to $3.232 billion at March 31, 2023, from $3.045 billion at December 31, 2022. Total loan increases for the first three months of 2023 included increases of $121.7 million in commercial real estate and multi-family loans, $45.6 million in commercial business loans, $17.6 million in construction loans, and $2.1 million in home equity and consumer loans, partly offset by a decrease of $3.4 million in residential one-to-four family loans. The allowance for credit losses decreased $3.5 million to $28.9 million, or 571.0 percent of non-accruing loans and 0.89 percent of gross loans, at March 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 $8.0 million, or 7.3 percent, to $101.4 million at March 31, 2023, from $109.4 million at December 31, 2022, representing unrealized losses, calls and maturities, and repayments.
Deposit liabilities increased by $55.6 million, or 2.0 percent, to $2.867 billion at March 31, 2023, from $2.812 billion at December 31, 2022. The increase in deposits was primarily driven by an increase of $43.3 million in non-brokered deposits during the first quarter of 2023.
Debt obligations increased by $150.2 million to $570.0 million at March 31, 2023 from $419.8 million at December 31, 2022. The weighted average interest rate of FHLB advances was 4.52 percent at March 31, 2023 and 4.07 percent at December 31, 2022. The weighted average maturity of FHLB advances as of March 31, 2023 was 0.78 years. The fixed interest rate of our subordinated debt balances was 5.62 percent at March 31, 2023 and December 31, 2022.
Stockholders’ equity increased by $6.4 million, or 2.2 percent, to $297.6 million at March 31, 2023, from $291.3 million at December 31, 2022. The increase was primarily attributable to the increase in retained earnings of $8.0 million, or 7.0 percent, to $123.1 million at March 31, 2023 from $115.1 million at December 31, 2022.
First Quarter 2023 Income Statement Review
Net income was $8.1 million for the first quarter ended March 31, 2023 and $10.0 million for the first quarter ended March 31, 2022. The decline was primarily driven by higher loan loss provisioning and unrealized losses on equity investments for the first quarter of 2023 as compared with the first quarter of 2022.
Net interest income increased by $2.4 million, or 9.6 percent, to $27.5 million for the first quarter of 2023, from $25.1 million for the first quarter of 2022. The increase in net interest income resulted from higher interest income which was partially offset by higher interest expense.
Interest income increased by $14.6 million, or 52.8 percent, to $42.4 million for the first quarter of 2023 from $27.7 million for the first quarter of 2022. The average balance of interest-earning assets increased $583.5 million, or 20.1 percent, to $3.483 billion for the first quarter of 2023 from $2.900 billion for the first quarter of 2022, while the average yield increased 104 basis points to 4.86 percent for the first quarter of 2023 from 3.82 percent for the first quarter of 2022. Compared to the first quarter of 2023, the interest income on loans for the first quarter of 2022 also included $147,000 of amortization of purchase credit fair value adjustments related to a prior acquisition, which added approximately three basis points to the average yield on interest-earning assets.
Interest expense increased by $12.2 million to $14.9 million for the first quarter of 2023 from $2.7 million for the first quarter of 2022. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 174 basis points to 2.24 percent for the first quarter of 2023 from 0.50 percent for the first quarter of 2022, while the average balance of interest-bearing liabilities increased by $551.7 million to $2.661 billion for the first quarter of 2023 from $2.109 billion for the first 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 3.15 percent for the first quarter of 2023 compared to 3.46 percent for the first quarter of 2022. The decrease in the net interest margin compared to the first quarter of 2022 was the result of the increase in the cost of interest-bearing liabilities partially offset by the increase in the yield on interest-earning assets. In a persistently high interest rate environment, management has been proactive in managing both the yield on earning assets and the cost of funds to protect net interest margin and continue to support the growth of net interest income.
During the first quarter of 2023, the Company experienced $48,000 in net recoveries compared to $564,000 in the first quarter of 2022. The Bank had non-accrual loans totaling $5.06 million, or 0.16 percent of gross loans, at March 31, 2023 as compared to $9.2 million, or 0.38 percent of gross loans, at March 31, 2022. The allowance for credit losses on loans was $28.9 million, or 0.89 percent of gross loans at March 31, 2023, and $34.0 million, or 1.40 percent of gross loans at March 31, 2022. The provision for loan losses was $622,000 for the first quarter of 2023 compared to a credit for loan losses of $2.6 million for the first quarter of 2022. Management believes that the allowance for credit losses on loans was adequate at March 31, 2023 and March 31, 2022.
Non-interest income decreased by $1.1 million to a loss of $1.7 million for the first quarter of 2023 from a loss of $600,000 for first quarter of 2022. The decrease in total non-interest income was mainly related to an increase in the realized and unrealized losses on equity securities from $2.7 million to $3.2 million and a decrease in BOLI income of $334,000. The realized and unrealized losses on equity securities are based on market conditions.
Non-interest expense increased by $895,000, or 6.9 percent, to $13.9 million for the first quarter of 2023 from $13.0 million for the first quarter of 2022. The increase in operating expenses for the first quarter of 2023 was primarily driven by the higher salaries and employee benefits and increased spending for advertising and promotions compared to the first quarter of 2022. The increase in salaries related to normal compensation increases, higher commission expenses from strong loan production, and staff hiring. The higher advertising and promotional spending is intended to continue the strong growth in our business. The number of full-time equivalent employees for the first quarter of 2023 was 298, as compared to 303 for the same period in 2022.
The income tax provision decreased by $911,000 or 22.0 percent, to $3.2 million for the first quarter of 2023 from $4.1 million for the first quarter of 2022. The consolidated effective tax rate was 28.5 percent for the first quarter of 2023 compared to 29.4 percent for the first quarter of 2022.
Asset Quality
During the first quarter of 2023, the Company recognized $48,000 in net recoveries, compared to $564,000 for the first quarter of 2022.
On January 1, 2023, the Company adopted Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”), which upon adoption resulted in a Day One adjustment of $4.2 million (reduction to the 12/31/2022 Allowance for Credit Losses and benefit to capital, net of tax effect). The provision for loan losses was $622,000 for the first quarter of 2023 compared to a credit for loan losses of $2.6 million for the first quarter of 2022. The Bank had non-accrual loans totaling $5.06 million, or 0.16 percent of gross loans, at March 31, 2023, as compared to $9.2 million, or 0.38 percent of gross loans at March 31, 2022. The allowance for credit losses on loans was $28.9 million, or 0.89 percent of gross loans at March 31, 2023, and $34.0 million, or 1.40 percent of gross loans at March 31, 2022. The allowance for credit losses was 571.0 percent of non-accrual loans at March 31, 2023, and 368.1 percent of non-accrual loans at March 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 27 branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and three branches in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.
Forward-Looking Statements
This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.
In addition to factors previously disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission (the "SEC") and those identified elsewhere in this release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the inability to close loans in our pipeline; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; supply chain disruptions; any future pandemics and the related adverse local and national economic consequences; civil unrest in the communities that the company serves; customer acceptance of the Bank’s products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and actions of governmental agencies and legislative and regulatory actions and reforms.
Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s financial results for the periods in question.
The Company provides measurements and ratios based on tangible stockholders' equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see "Reconciliation of GAAP to Non-GAAP Financial Measures" below.
Statements of Income - Three Months Ended, March 31,2023 December 31,2022 March 31, 2022 Mar. 31, 2023 vs. Dec. 31,2022 Mar. 31, 2023 vs. Mar. 31, 2022 Interest and dividend income: (In thousands, except per share amounts, Unaudited) Loans, including fees $ 38,889 $ 36,173 $ 26,321 7.5 % 47.7 % Mortgage-backed securities 186 185 159 0.5 % 17.0 % Other investment securities 1,120 1,177 948 -4.8 % 18.1 % FHLB stock and other interest earning assets 2,157 1,321 296 63.3 % 628.7 % Total interest and dividend income 42,352 38,856 27,724 9.0 % 52.8 % Interest expense: Deposits: Demand and Money Market 3,154 2,410 758 30.9 % 316.1 % Savings and club 118 118 108 0.0 % 9.3 % Certificates of deposit 6,453 3,973 980 62.4 % 558.5 % 9,725 6,501 1,846 49.6 % 426.8 % Borrowings 5,156 2,174 806 137.2 % 539.7 % Total interest expense 14,881 8,675 2,652 71.5 % 461.1 % Net interest income 27,471 30,181 25,072 -9.0 % 9.6 % Provision (credit) for loan losses 622 (500 ) (2,575 ) -224.4 % -124.2 % Net interest income after provision (credit) for loan losses 26,849 30,681 27,647 -12.5 % -2.9 % Non-interest income: Fees and service charges 1,098 1,138 1,214 -3.5 % -9.6 % Gain on sales of loans 6 3 65 100.0 % -90.8 % Realized and unrealized loss on equity investments (3,227 ) (723 ) (2,685 ) 346.3 % 20.2 % BOLI income 421 584 755 -27.9 % -44.2 % Other 38 60 51 -36.7 % -25.5 % Total non-interest income (1,664 ) 1,062 (600 ) -256.7 % 177.3 % Non-interest expense: Salaries and employee benefits 7,618 7,626 6,736 -0.1 % 13.1 % Occupancy and equipment 2,552 2,651 2,695 -3.7 % -5.3 % Data processing and communications 1,665 1,579 1,465 5.4 % 13.7 % Professional fees 566 2,169 494 -73.9 % 14.6 % Director fees 265 261 321 1.5 % -17.4 % Regulatory assessment fees 536 431 304 24.4 % 76.3 % Advertising and promotions 278 260 141 6.9 % 97.2 % Other real estate owned, net 1 4 1 -75.0 % 0.0 % Other 373 1,056 802 -64.7 % -53.5 % Total non-interest expense 13,854 16,037 12,959 -13.6 % 6.9 % Income before income tax provision 11,331 15,706 14,088 -27.9 % -19.6 % Income tax provision 3,225 3,634 4,136 -11.3 % -22.0 % Net Income 8,106 12,072 9,952 -32.9 % -18.5 % Preferred stock dividends 173 172 276 0.5 % -37.1 % Net Income available to common stockholders $ 7,933 $ 11,900 $ 9,676 -33.3 % -18.0 % Net Income per common share-basic and diluted Basic $ 0.47 $ 0.70 $ 0.57 -33.5 % -17.9 % Diluted $ 0.46 $ 0.69 $ 0.56 -33.0 % -17.4 % Weighted average number of common shares outstanding Basic 16,949 16,916 16,980 0.2 % -0.2 % Diluted 17,208 17,289 17,343 -0.5 % -0.8 % Statements of Financial Condition March 31,2023 December 31,2022 March 31, 2022 March 31, 2023 vs. December 31, 2022 March 31, 2023 vs. March 31,2022 ASSETS (In thousands, Unaudited) Cash and amounts due from depository institutions $ 13,213 $ 11,520 $ 8,448 14.7 % 56.4 % Interest-earning deposits 247,862 217,839 388,205 13.8 % -36.2 % Total cash and cash equivalents 261,075 229,359 396,653 13.8 % -34.2 % Interest-earning time deposits 735 735 735 - - Debt securities available for sale 86,988 91,715 86,307 -5.2 % 0.8 % Equity investments 14,458 17,686 21,269 -18.3 % -32.0 % Loans held for sale - 658 325 -100.0 % -100.0 % Loans receivable, net of allowance for credit losses of $28,882, $32,373 and $33,980, respectively 3,231,864 3,045,331 2,395,930 6.13 % 34.89 % Federal Home Loan Bank of New York stock, at cost 26,875 20,113 6,128 33.6 % 338.6 % Premises and equipment, net 10,106 10,508 11,646 -3.8 % -13.2 % Accrued interest receivable 14,717 13,455 9,593 9.4 % 53.4 % Other real estate owned 75 75 75 - - Deferred income taxes 15,178 16,462 13,016 -7.8 % 16.6 % Goodwill and other intangibles 5,359 5,382 5,417 -0.4 % -1.1 % Operating lease right-of-use asset 15,111 13,520 11,883 11.8 % 27.2 % Bank-owned life insurance ("BOLI") 72,077 71,656 73,240 0.6 % -1.6 % Other assets 8,438 9,538 8,093 -11.5 % 4.3 % Total Assets $ 3,763,056 $ 3,546,193 $ 3,040,310 6.1 % 23.8 % LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Non-interest bearing deposits $ 604,935 $ 613,910 $ 621,402 -1.5 % -2.6 % Interest bearing deposits 2,262,274 2,197,697 2,009,773 2.9 % 12.6 % Total deposits 2,867,209 2,811,607 2,631,175 2.0 % 9.0 % FHLB advances 532,399 382,261 71,848 39.3 % 641.0 % Subordinated debentures 37,566 37,508 37,333 0.2 % 0.6 % Operating lease liability 15,436 13,859 12,180 11.4 % 26.7 % Other liabilities 12,828 9,704 11,615 32.2 % 10.4 % Total Liabilities 3,465,438 3,254,939 2,764,151 6.5 % 25.4 % STOCKHOLDERS' EQUITY Preferred stock: $0.01 par value, 10,000 shares authorized - - - Additional paid-in capital preferred stock 21,003 21,003 26,213 - -19.9 % Common stock: no par value, 40,000 shares authorized - - - Additional paid-in capital common stock 197,197 196,164 194,222 0.5 % 1.5 % Retained earnings 123,121 115,109 88,132 7.0 % 39.7 % Accumulated other comprehensive loss (6,613 ) (6,491 ) (1,275 ) 1.9 % 418.7 % Treasury stock, at cost (37,090 ) (34,531 ) (31,133 ) 7.4 % 19.1 % Total Stockholders' Equity 297,618 291,254 276,159 2.2 % 7.8 % Total Liabilities and Stockholders' Equity $ 3,763,056 $ 3,546,193 $ 3,040,310 6.1 % 23.8 % Outstanding common shares 16,884 16,931 16,985 Average Balances and Rates -Three Months Ended March 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) $ 3,165,678 $ 38,889 4.91 % $ 2,343,845 $ 26,321 4.49 % Investment Securities 108,869 1,306 4.80 % 108,960 1,107 4.06 % FHLB stock and other interest-earning assets 208,842 2,157 4.13 % 447,080 296 0.26 % Total Interest-earning assets 3,483,390 42,352 4.86 % 2,899,885 27,724 3.82 % Non-interest-earning assets 116,769 102,118 Total assets $ 3,600,159 $ 3,002,003 Interest-bearing liabilities: Interest-bearing demand accounts $ 713,788 $ 1,789 1.00 % $ 706,067 $ 398 0.23 % Money market accounts 314,427 1,365 1.74 % 345,564 360 0.42 % Savings accounts 322,760 118 0.15 % 336,575 108 0.13 % Certificates of Deposit 848,447 6,453 3.04 % 611,813 980 0.64 % Total interest-bearing deposits 2,199,422 9,725 1.77 % 2,000,019 1,846 0.37 % Borrowed funds 461,415 5,156 4.47 % 109,105 806 2.95 % Total interest-bearing liabilities 2,660,837 14,881 2.24 % 2,109,124 2,652 0.50 % Non-interest-bearing liabilities 645,883 621,575 Total liabilities 3,306,720 2,730,699 Stockholders' equity 293,439 271,305 Total liabilities and stockholders' equity $ 3,600,159 $ 3,002,003 Net interest income $ 27,471 $ 25,072 Net interest rate spread(1) 2.63 % 3.32 % Net interest margin(2) 3.15 % 3.46 % (1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. (2) Net interest margin represents net interest income divided by average total interest-earning assets. (3) Annualized. (4) Excludes allowance for credit losses. (5) Includes non-accrual loans which are immaterial to the yield. Financial Condition data by quarter Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 (In thousands, except book values) Total assets $ 3,763,056 $ 3,546,193 $ 3,265,612 $ 3,072,771 $ 3,040,310 Cash and cash equivalents 261,075 229,359 221,024 206,172 396,653 Securities 101,446 109,401 111,159 105,717 107,576 Loans receivable, net 3,231,864 3,045,331 2,787,015 2,620,630 2,395,930 Deposits 2,867,209 2,811,607 2,712,946 2,655,030 2,631,175 Borrowings 569,965 419,769 249,573 124,377 109,181 Stockholders’ equity 297,618 291,254 282,682 271,637 276,159 Book value per common share1 $ 16.38 $ 15.96 $ 15.42 $ 15.04 $ 14.72 Tangible book value per common share2 $ 16.07 $ 15.65 $ 15.11 $ 14.73 $ 14.41 Operating data by quarter Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 (In thousands, except for per share amounts) Net interest income $ 27,471 $ 30,181 $ 30,951 $ 27,741 $ 25,072 Provision (credit) for loan losses 622 (500 ) - - (2,575 ) Non-interest income -1,664 1,062 1,446 (313 ) (600 ) Non-interest expense 13,854 16,037 13,453 13,056 12,959 Income tax expense 3,225 3,634 5,552 4,209 4,136 Net income $ 8,106 $ 12,072 $ 13,392 $ 10,163 $ 9,952 Net income per diluted share $ 0.46 $ 0.69 $ 0.76 $ 0.58 $ 0.56 Common Dividends declared per share $ 0.16 $ 0.16 $ 0.16 $ 0.16 $ 0.16 Financial Ratios(3) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Return on average assets 0.90 % 1.46 % 1.74 % 1.32 % 1.33 % Return on average stockholder’s equity 11.05 % 16.99 % 19.42 % 15.00 % 14.67 % Net interest margin 3.15 % 3.76 % 4.18 % 3.74 % 3.46 % Stockholder’s equity to total assets 7.91 % 8.21 % 8.66 % 8.84 % 9.08 % Efficiency Ratio4 53.68 % 51.33 % 41.53 % 47.60 % 52.95 % Asset Quality Ratios Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 (In thousands, except for ratio %) Non-Accrual Loans $ 5,058 $ 5,109 $ 8,505 $ 9,201 $ 9,232 Non-Accrual Loans as a % of Total Loans 0.16 % 0.17 % 0.30 % 0.35 % 0.38 % ACL as % of Non-Accrual Loans 571.0 % 633.6 % 390.3 % 370.7 % 368.1 % Individually Evaluated Loans 17,585 28,272 40,524 42,411 40,955 Classified Loans 17,585 17,816 30,180 31,426 29,850 (1) Calculated by dividing stockholders' equity, less preferred equity, by 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 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 (In thousands) Residential one-to-four family $ 246,683 $ 250,123 $ 242,238 $ 235,883 $ 233,251 Commercial and multi-family 2,466,932 2,345,229 2,164,320 2,030,597 1,804,815 Construction 162,553 144,931 153,103 155,070 141,082 Commercial business 327,598 282,007 205,661 181,868 198,216 Home equity 58,822 56,888 56,064 51,808 52,279 Consumer 3,383 3,240 2,545 2,656 2,726 $ 3,265,971 $ 3,082,418 $ 2,823,931 $ 2,657,882 $ 2,432,369 Less: Deferred loan fees, net (5,225 ) (4,714 ) (3,721 ) (3,139 ) (2,459 ) Allowance for credit loss (28,882 ) (32,373 ) (33,195 ) (34,113 ) (33,980 ) Total loans, net $ 3,231,864 $ 3,045,331 $ 2,787,015 $ 2,620,630 $ 2,395,930 Non-Accruing Loans in Portfolio by quarter Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 (In thousands) Residential one-to-four family $ 237 $ 243 $ 263 $ 267 $ 278 Commercial and multi-family 340 346 757 757 757 Construction 3,217 3,180 3,180 3,043 2,954 Commercial business 1,264 1,340 4,305 5,104 5,243 Home equity - - - 30 - Total: $ 5,058 $ 5,109 $ 8,505 $ 9,201 $ 9,232 Distribution of Deposits by quarter Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 (In thousands) Demand: Non-Interest Bearing $ 604,934 $ 613,909 $ 610,425 $ 595,167 $ 621,403 Interest Bearing 686,577 757,615 726,012 810,535 724,020 Money Market 361,558 305,556 370,353 360,356 354,302 Sub-total: $ 1,653,069 $ 1,677,080 $ 1,706,790 $ 1,766,058 $ 1,699,725 Savings and Club 319,131 329,753 338,864 347,279 341,529 Certificates of Deposit 895,009 804,774 667,291 541,693 589,921 Total Deposits: $ 2,867,209 $ 2,811,607 $ 2,712,945 $ 2,655,030 $ 2,631,175 Reconciliation of GAAP to Non-GAAP Financial Measures by quarter Tangible Book Value per Share Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 (In thousands, except per share amounts) Total Stockholders' Equity $ 297,618 $ 291,254 $ 282,682 $ 271,637 $ 276,159 Less: goodwill 5,252 5,252 5,252 5,252 5,252 Less: preferred stock 21,003 21,003 21,003 16,563 26,213 Total tangible common stockholders' equity 271,363 264,999 256,427 249,822 244,694 Shares common shares outstanding 16,884 16,931 16,974 16,960 16,984 Book value per common share $ 16.38 $ 15.96 $ 15.42 $ 15.04 $ 14.72 Tangible book value per common share $ 16.07 $ 15.65 $ 15.11 $ 14.73 $ 14.41 Efficiency Ratios Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 (In thousands, except for ratio %) Net interest income $ 27,471 $ 30,181 $ 30,951 $ 27,741 $ 25,072 Non-interest income -1,664 1,062 1,446 -313 -600 Total income 25,807 31,243 32,397 27,428 24,472 Non-interest expense 13,854 16,037 13,453 13,056 12,959 Efficiency Ratio 53.68 % 51.33 % 41.53 % 47.60 % 52.95 % Contact:
Thomas Coughlin,
President & CEO
Jawad Chaudhry, CFO
(201) 823-0700