• BCB Bancorp, Inc.’s EPS Grows to $0.58 in Second Quarter 2022; NIM Expands to 3.74 Percent and Net Loans Increase 13.7 Percent YTD; Declares Quarterly Cash Dividend of $0.16 Per Share

    ソース: Nasdaq GlobeNewswire / 21 7 2022 08:30:01   America/New_York

    BAYONNE, N.J., July 21, 2022 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported that net income increased 26.2 percent to $10.2 million for the second quarter of 2022, compared to $8.1 million for the second quarter of 2021, and increased 2.1 percent compared to $10.0 million in the immediate prior quarter. Earnings per diluted share for the second quarter of 2022 were $0.58, compared to $0.56 in the preceding quarter and $0.45 in the second quarter of 2021. For the first six months of the year, net income increased 32.6 percent to $20.1 million, compared to $15.2 million for the first six months of 2021. Year-to-date, earnings per diluted share were $1.13 compared to $0.85 for the first six months of 2021.

    The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on August 15, 2022 to common shareholders of record on August 1, 2022.

    “Our second quarter earnings were exceptional, and a direct result of the efforts we have put in place to manage our cost of funds, control operating expenses, and grow the balance sheet,” stated Thomas Coughlin, President and Chief Executive Officer. “The highlights of the second quarter include substantial growth in the loan portfolio, increases to our core deposit base, and expansion of the net interest margin.”

    “Our approach to managing our funding costs, combined with the increase in loan volume during the quarter, helped to increase our net interest margin by 27 basis points in the second quarter of 2022, compared to the second quarter a year ago. We are well-positioned for rising interest rates with a strong, low-cost core deposit base and other diverse sources of liquidity to support the Bank’s substantial loan pipeline,” said Coughlin.

    Mr. Coughlin stated, “Due to the continued, solid performance of our asset quality metrics, we recorded no loan loss provision during the second quarter of 2022. Our non-accrual loans to total loans ratio decreased to 0.35 percent at June 30, 2022, from 0.38 percent at March 31, 2022, and 0.94 percent a year ago.”

    Executive Summary

    • Net income was $10.2 million in the second quarter of 2022, compared to $10.0 million in the prior quarter, and $8.1 million in the second quarter a year ago.
    • Earnings per diluted share were $0.58 in the second quarter of 2022, compared to $0.56 in the prior quarter, and $0.45 in the second quarter of 2021.
    • Net interest margin was 3.74 percent for the second quarter of 2022, a 28 basis point increase compared to 3.46 percent for the first quarter of 2022, and a 27 basis point increase compared to 3.47 percent for the second quarter of 2021.
      • Total cost of interest-bearing liabilities remained flat at 0.50 percent for the second quarter of 2022, compared to 0.50 percent for the first quarter of 2022, and decreased 24 basis points from 0.74 percent for the second quarter of 2021.
      • The interest rate spread increased by 28 basis points to 3.60 percent for the second quarter of 2022, compared to 3.32 percent for the first quarter of 2022, and increased 30 basis points from 3.30 percent compared to the second quarter of 2021.
    • The efficiency ratio for the second quarter was 47.6 percent compared to 53.0 percent in the prior quarter, and 48.9 percent in the second quarter of 2021.
    • The annualized return on average assets ratio for the second quarter was 1.32 percent, compared to 1.33 percent in the prior quarter, and 1.12 percent in the second quarter of 2021.
    • The annualized return on average equity ratio for the second quarter was 15.0 percent, compared to 14.7 percent in the prior quarter, and 12.6 percent in the second quarter of 2021.
    • The Company had no provision for loan losses for the second quarter of 2022, compared to a credit to the loan loss provision of $2.6 million for the prior quarter, and $2.3 million for the second quarter of 2021.
    • Allowance for loan losses as a percentage of non-accrual loans was 370.7 percent at June 30, 2022, compared to 368.1 percent for the prior quarter, and 169.0 percent at June 30, 2021.
    • Total non-accrual loans remained steady at $9.2 million for both June 30, 2022 and March 31, 2022, and decreased from $22.2 million at June 30, 2021.
    • Total loans receivable, net of allowance for loan losses, increased 13.3 percent to $2.621 billion at June 30, 2022, from $2.313 billion at June 30, 2021.
    • Total deposits increased 8.6 percent to $2.655 billion at June 30, 2022, up from $2.446 billion at June 30, 2021, with noninterest bearing deposits increasing 21.0 percent over a year ago.
    • The Company’s Board of Directors declared a regular quarterly cash dividend of $0.16 per share, payable August 15, 2022 to common shareholders of record August 1, 2022.

    Balance Sheet Review

    Total assets increased by $105.2 million, or 3.5 percent, to $3.073 billion at June 30, 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 $205.4 million, or 49.9 percent, to $206.2 million at June 30, 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, gross, increased by $313.9 million, or 13.4 percent, to $2.658 billion at June 30, 2022, from $2.344 billion at December 31, 2021. Total loan increases for the first six months of 2022 included increases of $310.5 million in commercial real estate and multi-family loans, $11.3 million in residential one-to-four family loans, $1.3 million in home equity loans, and $1.2 million in construction loans, partly offset by decreases of $9.3 million in commercial business loans, and $1.1 million in consumer loans. The allowance for loan losses decreased $3.0 million to $34.1 million, or 370.7 percent of non-accruing loans and 1.28 percent of gross loans, at June 30, 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 $4.7 million, or 4.2 percent, to $105.7 million at June 30, 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 $15.5 million.

    Deposit liabilities increased by $93.6 million, or 3.7 percent, to $2.655 billion at June 30, 2022, from $2.561 billion at December 31, 2021. Total increases for the six months ended June 30, 2022, included $142.3 million in NOW deposit accounts, $23.2 million in money market checking accounts, $7.0 million in non-interest-bearing deposit accounts, and $17.5 million in savings and club accounts. The increase in deposits was partly offset by a decrease of $96.4 million in certificates of deposit, including listing service and brokered deposit accounts. The weighted average interest rate of certificates of deposit was 0.60 percent at June 30, 2022 and 0.72 percent at December 31, 2021.

    Debt obligations increased by $15.4 million to $124.4 million at June 30, 2022, from $109.0 million at December 31, 2021, and consisted of both Federal Home Loan Bank (“FHLB”) borrowings and subordinated debt balances. The increase in debt obligations related to an overnight FHLB borrowing of $15.0 million. The weighted average interest rate of FHLB advances was 1.38 percent at June 30, 2022, and at December 31, 2021. The fixed interest rate of our subordinated debt balances was 5.625 percent at June 30, 2022, and at December 31, 2021.

    Stockholders’ equity decreased by $2.4 million, or 0.9 percent, to $271.6 million at June 30, 2022, from $274.0 million at December 31, 2021. The decrease was primarily attributable to a decrease of $12.4 million in additional paid-in-capital for preferred stock and an increase in accumulated other comprehensive losses of $4.1 million. The decrease was partly offset by an increase in retained earnings of $14.2 million, or 17.5 percent, to $95.4 million at June 30, 2022, from $81.2 million at December 31, 2021, related to the net effect of net income less dividends paid for the six months ended June 30, 2022. The decrease in additional paid-in-capital for preferred stock was primarily related to the redemption of $9.4 million of the Company’s then-outstanding Series D 4.5 percent preferred stock and $5.3 million of the Company’s then-outstanding Series G 6.0 percent preferred stock, partially offset by the issuance of $2.4 million of Series I 3.0 percent preferred stock. Accumulated other comprehensive income decreased by $4.1 million over the prior year, based upon unfavorable market conditions related to the Company’s available for sale debt securities.

    Second Quarter 2022 Income Statement Review

    Net interest income increased by $3.7 million, or 15.3 percent, to $27.7 million for the second quarter of 2022, from $24.1 million for the second quarter of 2021. The increase in net interest income resulted from a $2.5 million increase in interest income as well as a decrease of $1.2 million in interest expense.

    Interest income increased by $2.5 million, or 8.8 percent, to $30.5 million for the second quarter of 2022, from $28.0 million for the second quarter of 2021. The average balance of interest-earning assets increased $196.7 million, or 7.1 percent, to $2.969 billion for the second quarter of 2022, from $2.772 billion for the second quarter of 2021, while the average yield increased six basis points to 4.10 percent for the second quarter of 2022, from 4.04 percent for the second quarter of 2021. The increase in the average balance of interest-earning assets mainly related to an increase in the Company’s level of average loans receivable for the second quarter of 2022, as compared to the second quarter of 2021.

    The increase in interest income mainly related to an increase in the average balance on loans receivable of $173.5 million to $2.517 billion for the second quarter of 2022, from $2.344 billion for the second quarter of 2021. The increase in the average balance on loans receivable was result of the strength of the Company’s loan pipeline. Interest income on loans also included $152,000 of amortization of purchase credit fair value adjustments related to a prior acquisition for the second quarter of 2022, which added approximately two basis points to the average yield on interest earning assets.

    Interest expense decreased by $1.2 million, or 31.0 percent, to $2.7 million for the second quarter of 2022, from $3.9 million for the second quarter of 2021. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 24 basis points to 0.50 percent for the second quarter of 2022, from 0.74 percent for the second quarter of 2021, partly offset by an increase in the average balance of interest-bearing liabilities of $44.4 million, or 2.1 percent, to $2.174 billion for the second quarter of 2022, from $2.129 billion for the second 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 3.74 percent for the second quarter of 2022, compared to 3.47 percent for the second quarter of 2021. The increase in the net interest margin was the result of an increase in the average volume on loans receivable as well as a decrease in funding costs.

    Due to improved quantitative and qualitative factors related to the Company’s asset quality metrics, no provision for loan losses was recorded for the second quarter of 2022. This compared to a $2.3 million provision for loan losses during the second quarter of 2021. During the second quarter of 2022, the Company experienced $133,000 in net recoveries compared to $300,000 in net charge offs for the second quarter of 2021. The Bank had non-accrual loans totaling $9.2 million, or 0.35 percent of gross loans at June 30, 2022, as compared to $22.2 million, or 0.94 percent of gross loans at June 30, 2021. The allowance for loan losses was $34.1 million, or 1.28 percent of gross loans at June 30, 2022, and $37.5 million, or 1.59 percent of gross loans at June 30, 2021.

    Noninterest income decreased by $3.1 million, or 111.1 percent, to an expense of $313,000 for the second quarter of 2022, from $2.8 million for second quarter of 2021. The decrease in total noninterest income was mainly related to an increase in the unrealized loss of equity securities, a decrease in gains on the sale of premises, and a lower gain on sale of loans, partly offset by an increase in fees and service charges and other non-interest income. The unrealized loss on equity securities increased $2.8 million to $2.3 million for the second quarter of 2022, from an unrealized gain of $499,000 for the second quarter 2021. The unrealized gains or losses on equity securities are based on market conditions. Gains on the sale of premises sold were $371,000 for the second quarter of 2021 with no comparable gain or loss for the second quarter of 2022. Gains on sales of loans decreased by $175,000, or 80.3 percent, to $43,000 for the second quarter of 2022, from $218,000 for the second 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 $101,000, or 0.8 percent, to $13.0 million for the second quarter of 2022, from $13.1 million for the second quarter of 2021. The decrease was mainly related to a decrease in debt extinguishment expense and other non-interest expense. The Company recognized an expense of $194,000 for a loss on extinguishment of debt related to the prepayment of higher-cost FHLB borrowings in the second quarter of 2021. There was no comparable expense in the second quarter of 2022. The decrease in other non-interest expense mainly related to a decrease in loan-related legal expenses. Salaries and employee benefits expense increased by $203,000, or 3.1 percent, to $6.7 million for the second quarter of 2022, from $6.5 million for the second quarter of 2021. The increase mainly related to payments made to the estate of former Chief Financial Officer, Thomas Keating. The number of full-time equivalent employees for the second quarter of 2022 was 301, compared to 303 for the first quarter of 2022, and 288 for the same period in 2021.

    The income tax provision increased by $827,000, or 24.5 percent, to $4.2 million for the second quarter of 2022, from $3.4 million for the second quarter of 2021. The increase in the income tax provision was a result of higher taxable income for the second quarter of 2022, as compared with that same period for 2021. The consolidated effective tax rate for the second quarter of 2022 was 29.3 percent compared to 29.6 percent for the second quarter of 2021.

    Year-to-Date 2022 Income Statement Review

    Net interest income increased by $5.2 million, or 10.9 percent, to $52.8 million for the first six months of 2022, from $47.6 million for the first six months of 2021. The increase in net interest income resulted from a decrease of $3.1 million in interest expense as well as an increase of $2.1 million in interest income.

    Interest income increased by $2.1 million, or 3.8 percent, to $58.2 million for the first six months of 2022, from $56.1 million for the first six months of 2021. The average balance of interest-earning assets increased $195.7 million, or 7.1 percent, to $2.935 billion for the first six months of 2022, from $2.739 billion for the first six months of 2021, while the average yield decreased 13 basis points to 3.97 percent for the first six months of 2022, from 4.10 percent for the first six months of 2021. The increase in the average balance of interest-earning assets mainly related to an increase in the Company’s level of average interest-earning deposits and loans receivable for the first six months of 2022, as compared to the first six months of 2021.

    The increase in interest income mainly related to an increase in the average balance on loans receivable of $96.0 million to $2.431 billion for the first six months of 2022, from $2.335 billion for the first six months of 2021. The increase in the average balance on loans receivable was result of the strength of the Company’s loan pipeline. Interest income on loans also included $308,000 of amortization of purchase credit fair value adjustments related to a prior acquisition for the first six months of 2022, which added approximately four basis points to the average yield on interest earning assets.

    Interest expense decreased by $3.1 million, or 36.4 percent, to $5.4 million for the first six months of 2022, from $8.5 million for the first six months of 2021. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 30 basis points to 0.50 percent for the first six months of 2022, from 0.80 percent for the first six months of 2021, partly offset by an increase in the average balance of interest-bearing liabilities of $17.0 million, or 0.8 percent, to $2.141 billion for the first six months of 2022, from $2.124 billion for the first six months 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 3.60 percent for the first six months of 2022, compared to 3.48 percent for the first six months of 2021. The increase in the net interest margin compared to the first six months of 2021 was the result of an increase in the average volume on loans receivable as well as a decrease in funding costs.

    The Company recorded a credit to the provision for loan losses of $2.6 million for the first six months of 2022, compared to a $4.2 million provision for loan losses for the first six months of 2021. During the first six months of 2022, the Company recorded $431,000 in net charge offs compared to $327,000 in net charge offs for the first six months of 2021.

    Noninterest income decreased by $5.7 million, or 119.1 percent, to an expense of $913,000 for the first six months of 2022, from $4.8 million for second quarter of 2021. The decrease in total noninterest income was mainly related to an increase in the unrealized loss of equity securities, a lower gain on sales of loans, and a decrease in gains on the sale of premises, partly offset by an increase in fees and service charges. The unrealized loss on equity securities increased $5.3 million to $5.0 million for the first six months of 2022, from an unrealized gain of $303,000 for the first six months of 2021. The unrealized gains or losses on equity securities are based on market conditions. Gains on sales of loans decreased by $384,000, or 78.0 percent, to $108,000 for the first six months of 2022, from $492,000 for the first six months of 2021. Factors considered when deciding to sell loans include market conditions, demand, and the loan portfolio. Gains on the sale of premises sold were $371,000 for the first six months of 2021 with no comparable gain or loss for the first six months of 2022. 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 $725,000, or 2.7 percent, to $26.0 million for the first six months of 2022, from $26.7 million for the first six months of 2021. The decrease was mainly related to a decrease in debt extinguishment expense and other non-interest expense. The Company recognized an expense of $734,000 for a loss on extinguishment of debt related to the prepayment of higher-cost FHLB borrowings in the first six months of 2021. There was no comparable expense in the first six months of 2022. Salaries and employee benefits expense increased by $394,000, or 3.0 percent, to $13.4 million for the first six months of 2022, from $13.0 million for the first six months of 2021. The increase mainly related to payments made to the estate of former Chief Financial Officer, Thomas Keating and normal compensation increases. The number of full-time equivalent employees for the first six months of 2022 was 302 compared to 300 for the same period of 2021.

    The income tax provision increased by $2.0 million, or 31.9 percent, to $8.3 million for the first six months of 2022, from $6.3 million for the first six months of 2021. The increase in the income tax provision was a result of higher taxable income for the first six months of 2022, as compared with that same period for 2021. The consolidated effective tax rate for the first six months of 2022 was 29.3 percent compared to 29.4 percent for the first six months of 2021.

    Asset Quality

    The Bank had non-accrual loans totaling $9.2 million, or 0.35 percent of gross loans at June 30, 2022, as compared to $14.9 million, or 0.64 percent of gross loans at December 31,2021 and $22.2 million, or 0.94 percent of gross loans at June 30, 2021. The allowance for loan losses was $34.1 million, or 1.28 percent of gross loans at June 30, 2022, $37.1 million or 1.58 percent of gross loans at December 31,2021and $37.5 million, or 1.59 percent of gross loans at June 30, 2021. The allowance for loan losses was 370.7 percent of non-accrual loans at June 30, 2022, 249.3 percent of non-accrual loans at December 31,2021and 169.0 percent of non-accrual loans at June 30, 2021.

    Performing troubled debt restructured (“TDR”) loans that were not included in non-accrual loans at June 30, 2022, were $11.0 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.

    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; the COVID-19 pandemic or any similar future pandemic 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,   
     June 30, 2022March 31, 2022June 30, 2021June 30, 2022 vs. March 31, 2022 June 30, 2022 vs. June 30, 2021
    Interest and dividend income: (In thousands, except per share amounts, Unaudited)   
       Loans, including fees$ 28,781 $ 26,321 $ 26,888 9.3% 7.0%
       Mortgage-backed securities 47  159  167 -70.4% -71.9%
       Other investment securities 939  948  747 -0.9% 25.7%
       FHLB stock and other interest earning assets 694  296  202 134.5% 243.6%
         Total interest and dividend income 30,461  27,724  28,004 9.9% 8.8%
           
    Interest expense:      
    Deposits:      
       Demand 946  758  1,150 24.8% -17.7%
       Savings and club 110  108  127 1.9% -13.4%
       Certificates of deposit 849  980  1,639 -13.4% -48.2%
      1,905  1,846  2,916 3.2% -34.7%
       Borrowings 815  806  1,024 1.1% -20.4%
           Total interest expense 2,720  2,652  3,940 2.6% -31.0%
           
    Net interest income 27,741  25,072  24,064 10.6% 15.3%
    (Reversal) provision for loan losses -  (2,575) 2,295 -100.0% -100.0%
           
    Net interest income after provision for loan losses 27,741  27,647  21,769 0.3% 27.4%
           
    Non-interest income:      
       Fees and service charges 1,213  1,214  1,029 -0.1% 17.9%
       Gain on sales of loans 43  65  218 -33.8% -80.3%
       Loss on sale of impaired loans -  -  (64)   
       Gain on sale of premises -  -  371    
       Realized and unrealized (loss) gain on equity investments (2,302) (2,685) 499 -14.3% -561.3%
       BOLI income 686  755  729 -9.1% -5.9%
       Other 47  51  38 -7.8% 23.7%
          Total non-interest income (313) (600) 2,820 -47.8% -111.1%
           
    Non-interest expense:      
       Salaries and employee benefits 6,715  6,736  6,512 -0.3% 3.1%
       Occupancy and equipment 2,673  2,695  2,668 -0.8% 0.2%
       Data processing and communications 1,469  1,465  1,527 0.3% -3.8%
       Professional fees 489  494  491 -1.0% -0.4%
       Director fees 296  321  310 -7.8% -4.5%
       Regulatory assessment fees 244  304  314 -19.7% -22.3%
       Advertising and promotions 254  141  109 80.1% 133.0%
       Other real estate owned, net 4  1  19 300.0% -78.9%
       Loss from extinguishment of debt -  -  194   -100.0%
       Other 912  802  1,013 13.7% -10.0%
          Total non-interest expense 13,056  12,959  13,157 0.7% -0.8%
           
    Income before income tax provision 14,372  14,088  11,432 2.0% 25.7%
      Income tax provision 4,209  4,136  3,382 1.8% 24.5%
           
    Net Income 10,163  9,952  8,050 2.1% 26.2%
      Preferred stock dividends 138  276  284 -49.9% -51.4%
    Net Income available to common stockholders$ 10,025 $ 9,676 $ 7,766 3.6% 29.1%
           
    Net Income per common share-basic and diluted      
      Basic$ 0.59 $ 0.57 $ 0.45 3.5% 31.1%
      Diluted$ 0.58 $ 0.56 $ 0.45 2.9% 28.0%
           
    Weighted average number of common shares outstanding      
      Basic 16,997  16,980  17,126 0.1% -0.8%
      Diluted 17,404  17,343  17,282 0.4% 0.7%



     Statements of Income - Six Months Ended,
     June 30,2022June 30, 2021June 30, 2022 vs. June 30, 2021
    Interest and dividend income: (In thousands, except per share amounts, Unaudited) 
       Loans, including fees$ 55,102 $ 53,751 2.5%
       Mortgage-backed securities 206  373 -44.8%
       Other investment securities 1,887  1,531 23.3%
       FHLB stock and other interest earning assets 990  424 133.5%
         Total interest and dividend income 58,185  56,079 3.8%
        
    Interest expense:   
      Deposits:   
        Demand 1,704  2,348 -27.4%
       Savings and club 218  245 -11.0%
        Certificates of deposit 1,829  3,631 -49.6%
      3,751  6,224 -39.7%
        Borrowings 1,621  2,229 -27.3%
           Total interest expense 5,372  8,453 -36.4%
        
    Net interest income 52,813  47,626 10.9%
      (Reversal) provision for loan losses (2,575) 4,160 -161.9%
        
    Net interest income after provision for loan losses 55,388  43,466 27.4%
        
    Non-interest income:   
       Fees and service charges 2,427  2,140 13.4%
       Gain on sales of loans 108  492 -78.0%
       Loss on sale of impaired loans -  (64)-100.0%
       Realized and unrealized (loss) gain on equity investments (4,987) 303 -1745.9%
       BOLI income 1,441  1,430 0.8%
       Gain on sale of premises -  371 -100.0%
       Other 98  98 0.0%
          Total non-interest income (913) 4,770 -119.1%
        
    Non-interest expense:    
       Salaries and employee benefits 13,451  13,057 3.0%
       Occupancy and equipment 5,368  5,621 -4.5%
      Data processing and communications 2,934  2,982 -1.6%
      Professional fees 983  903 8.9%
      Director fees 617  557 10.8%
      Regulatory assessments 548  690 -20.6%
      Advertising and promotions 395  193 104.7%
      Other real estate owned, net 5  23 -78.3%
       Loss from extinguishment of debt -  734 -100.0%
       Other 1,714  1,980 -13.4%
          Total non-interest expense$ 26,015 $ 26,740 -2.7%
        
    Income before income tax provision 28,460  21,496 32.4%
      Income tax provision 8,345  6,329 31.9%
        
    Net Income 20,115  15,167 32.6%
      Preferred stock dividends 414  567 -27.0%
    Net Income available to common stockholders$ 19,701 $ 14,600 34.9%
        
    Net Income per common share-basic and diluted   
      Basic$ 1.16 $ 0.85 36.4%
      Diluted$ 1.13 $ 0.85 33.4%
        
    Weighted average number of common shares outstanding   
      Basic 16,989  17,120 -0.8%
      Diluted 17,375  17,257 0.7%



    Statements of Financial ConditionJune 30, 2022March 31, 2022June 30, 2021June 30, 2022 vs. March 31, 2022June 30, 2022 vs. June 30, 2021
    ASSETS(In Thousands, Unaudited)  
    Cash and amounts due from depository institutions$ 10,182 $ 8,448 $ 9,039 20.5%12.6%
    Interest-earning deposits 195,990  388,205  319,218 -49.5%-38.6%
       Total cash and cash equivalents 206,172  396,653  328,257 -48.0%-37.2%
          
    Interest-earning time deposits 735  735  735 - - 
    Debt securities available for sale 86,749  86,307  83,543 0.5%3.8%
    Equity investments 18,968  21,269  20,841 -10.8%-9.0%
    Loans held for sale 5  325  3,154 -98.5%-99.8%
    Loans receivable, net of allowance for loan losses     
       of $34,113, $33,980 and $37,472, respectively 2,620,630  2,395,930  2,312,559 9.38%13.32%
    Federal Home Loan Bank of New York stock, at cost 6,781  6,128  8,881 10.7%-23.6%
    Premises and equipment, net 11,075  11,646  13,819 -4.9%-19.9%
    Accrued interest receivable 10,315  9,593  10,621 7.5%-2.9%
    Other real estate owned 75  75  414 0.0%-81.9%
    Deferred income taxes 13,583  13,016  13,778 4.4%-1.4%
    Goodwill and other intangibles 5,406  5,417  5,458 -0.2%-1.0%
    Operating lease right-of-use asset 12,194  11,883  13,980 2.6%-12.8%
    Bank-owned life insurance ("BOLI") 70,426  73,240  70,963 -3.8%-0.8%
    Other assets 9,657  8,093  8,187 19.3%18.0%
        Total Assets$ 3,072,771 $ 3,040,310 $ 2,895,190 1.1%6.1%
          
    LIABILITIES AND STOCKHOLDERS' EQUITY     
          
    LIABILITIES     
    Non-interest bearing deposits$ 595,167 $ 621,402 $ 492,014 -4.2%21.0%
    Interest bearing deposits 2,059,863  2,009,773  1,953,800 2.5%5.4%
      Total deposits 2,655,030  2,631,175  2,445,814 0.9%8.6%
    FHLB advances 86,986  71,848  128,436 21.1%-32.3%
    Subordinated debentures 37,391  37,333  37,159 0.2%0.6%
    Operating lease liability 12,496  12,180  14,256 2.6%-12.3%
    Other liabilities 9,231  11,615  11,001 -20.5%-16.1%
        Total Liabilities  2,801,134  2,764,151  2,636,666 1.3%6.2%
          
    STOCKHOLDERS' EQUITY     
    Preferred stock: $0.01 par value, 10,000 shares authorized -  -  -   
    Additional paid-in capital preferred stock 16,563  26,213  25,723 -36.8%-35.6%
    Common stock: no par value, 40,000 shares authorized -  -  -   
    Additional paid-in capital common stock 194,567  194,222  192,968 0.2%0.8%
    Retained earnings 95,393  88,132  68,123 8.2%40.0%
    Accumulated other comprehensive loss (2,997) (1,275) (93)135.1%3122.6%
    Treasury stock, at cost (31,889) (31,133) (28,197)2.4%13.1%
        Total Stockholders' Equity 271,637  276,159  258,524 -1.6%5.1%
          
         Total Liabilities and Stockholders' Equity$ 3,072,771 $ 3,040,310 $ 2,895,190 1.1%6.1%
          
    Outstanding common shares 16,960  16,985  17,077   



     Three Months Ended June 30,
     2022
    		 2021
     Average BalanceInterest Earned/PaidAverage Yield/Rate (3) Average BalanceInterest Earned/PaidAverage Yield/Rate (3)
     (Dollars in thousands)
    Interest-earning assets:       
    Loans Receivable (4)(5)$ 2,517,283 $ 28,7814.57% $2,343,775 $26,8884.59%
    Investment Securities 107,132  9863.68%  105,520  9143.46%
    FHLB stock and other interest-earning assets 344,510  6940.81%  322,966  2020.25%
       Total Interest-earning assets 2,968,926  30,4614.10%  2,772,262  28,0044.04%
    Non-interest-earning assets 107,156     107,412   
       Total assets$ 3,076,081    $2,879,673   
    Interest-bearing liabilities:       
    Interest-bearing demand accounts$ 796,227 $ 5690.29% $631,568 $7030.45%
    Money market accounts 356,062  3760.42%  335,877  4470.53%
    Savings accounts 346,432  1100.13%  315,210  1270.16%
    Certificates of Deposit 565,479  8500.60%  676,163  1,6390.97%
       Total interest-bearing deposits 2,064,199  1,9050.37%  1,958,818  2,9160.60%
    Borrowed funds 109,436  8152.98%  170,433  1,0242.40%
       Total interest-bearing liabilities 2,173,636  2,7200.50%  2,129,250  3,9400.74%
    Non-interest-bearing liabilities 631,430     494,929   
       Total liabilities 2,805,066     2,624,179   
    Stockholders' equity 271,015     255,494   
       Total liabilities and stockholders' equity$ 3,076,081    $2,879,673   
    Net interest income $ 27,741   $24,064 
    Net interest rate spread(1)  3.60%   3.30%
    Net interest margin(2)  3.74%   3.47%
            
    (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 loan losses.
    (5)     Includes non-accrual loans which are immaterial to the yield



     Six Months Ended June 30,
     2022
    		 2021
     Average BalanceInterest Earned/PaidAverage Yield/Rate (3) Average BalanceInterest Earned/PaidAverage Yield/Rate (3)
     (Dollars in thousands)
    Interest-earning assets:       
    Loans Receivable (4) (5)$ 2,431,043 $ 55,1024.53% $2,335,051 $53,751 4.60%
    Investment Securities 108,024  2,0933.88%  109,967  1,904 3.46%
    FHLB stock and other interest-earning assets 395,512  9900.50%  293,827  424 0.29%
       Total Interest-earning assets 2,934,580  58,1853.97%  2,738,845  56,079 4.10%
    Non-interest-earning assets 104,666     108,486   
       Total assets$ 3,039,245    $2,847,331   
    Interest-bearing liabilities:       
    Interest-bearing demand accounts$ 751,396 $ 9670.26% $621,287 $1,460 0.47%
    Money market accounts 350,842  7360.42%  326,565  888 0.54%
    Savings accounts 341,531  2180.13%  309,010  245 0.16%
    Certificates of Deposit 588,518  1,8280.62%  679,550  3,631 1.07%
       Total interest-bearing deposits 2,032,286  3,7510.37%  1,936,413  6,224 0.64%
    Borrowed funds 109,272  1,6212.97%  188,096  2,229 2.37%
       Total interest-bearing liabilities 2,141,558  5,3720.50%  2,124,509  8,453 0.80%
    Non-interest-bearing liabilities 626,520     469,808   
       Total liabilities 2,768,078     2,594,317   
    Stockholders' equity 271,168     253,014   
       Total liabilities and stockholders' equity$ 3,039,245    $2,847,331   
    Net interest income $ 52,813   $47,626  
    Net interest rate spread(1)  3.46%   3.30%
    Net interest margin(2)  3.60%   3.48%
            
    (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 loan losses.
    (5)     Includes non-accrual loans which are immaterial to the yield



     Financial Condition data by quarter
     Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
          
     (In thousands, except book values)
    Total assets$3,072,771 $3,040,310 $2,967,528 $2,983,787 $2,895,190 
    Cash and cash equivalents 206,172  396,653  411,629  442,938  328,257 
    Securities 105,717  107,576  110,373  106,137  104,384 
    Loans receivable, net 2,620,630  2,395,930  2,304,942  2,289,854  2,312,559 
    Deposits 2,655,030  2,631,175  2,561,402  2,541,405  2,445,814 
    Borrowings 124,377  109,181  108,986  155,790  165,595 
    Stockholders’ equity 271,637  276,159  274,024  263,081  258,524 
    Book value per common share1$15.02 $14.72 $14.47 $13.93 $13.63 
    Tangible book value per common share2$14.71 $14.41 $14.16 $13.62 $13.32 
          
     Operating data by quarter
     Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
     (In thousands, except for per share amounts)
    Net interest income$27,741 $25,072 $25,154 $24,613 $24,064 
    (Reversal) provision for loan losses -  (2,575) (985) 680  2,295 
    Non-interest income (313) (600) 2,608  1,317  2,820 
    Non-interest expense 13,056  12,959  13,707  13,528  13,157 
    Income tax expense 4,209  4,136  4,289  3,400  3,382 
    Net income$10,163 $9,952 $10,751 $8,322 $8,050 
    Net income per diluted share$0.58 $0.56 $0.61 $0.47 $0.45 
    Common Dividends declared per share$0.16 $0.16 $0.16 $0.16 $0.14 
          
     Financial Ratios3
     Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
    Return on average assets 1.32% 1.33% 1.42% 1.13% 1.12%
    Return on average stockholder’s equity 15.00% 14.67% 16.25% 12.84% 12.60%
    Net interest margin 3.74% 3.46% 3.44% 3.46% 3.47%
    Stockholder’s equity to total assets 8.84% 9.08% 9.23% 8.82% 8.93%
    Efficiency Ratio4 47.60% 52.95% 49.37% 52.17% 48.94%
          
     Asset Quality Ratios
     Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
     (In thousands, except for ratio %)
    Non-Accrual Loans$9,201 $9,232 $14,889 $20,725 $22,174 
    Non-Accrual Loans as a % of Total Loans 0.35% 0.38% 0.64% 0.89% 0.94%
    ALLL as % of Non-Accrual Loans 370.7% 368.1% 249.3% 184.1% 169.0%
    Impaired Loans$42,411 $40,955 $49,382 $58,863 $62,281 
    Classified Loans$31,426 $29,850 $39,157 $48,547 $51,926 
          
    (1) Calculated by dividing stockholders' equity, less preferred equity, to shares outstanding.  
    (2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”  
    (3) Ratios are presented on an annualized basis, where appropriate.   
    (4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.” 



     Recorded Investment in Loans Receivable by quarter
     Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
     (In thousands)
    Residential one-to-four family$235,883 $233,251 $224,534 $224,330 $229,365 
    Commercial and multi-family 2,030,597  1,804,815  1,720,174  1,739,976  1,714,848 
    Construction 155,070  141,082  153,904  149,076  181,312 
    Commercial business 181,868  198,216  191,139  161,416  172,129 
    Home equity 51,808  52,279  50,469  52,109  53,333 
    Consumer 2,656  2,726  3,717  2,730  459 
     $2,657,882 $2,432,369 $2,343,937 $2,329,637 $2,351,446 
    Less:     
       Deferred loan fees, net (3,139) (2,459) (1,876) (1,627) (1,415)
       Allowance for loan loss (34,113) (33,980) (37,119) (38,156) (37,472)
          
    Total loans, net$2,620,630 $2,395,930 $2,304,942 $2,289,854 $2,312,559 
          
     Non-Accruing Loans in Portfolio by quarter
     Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
     (In thousands)
          
    Residential one-to-four family$267 $278 $282 $455 $464 
    Commercial and multi-family 757  757  8,601  13,322  14,673 
    Construction 3,043  2,954  2,847  2,787  2,787 
    Commercial business 5,104  5,243  3,132  4,128  4,216 
    Home equity 30  -  27  33  34 
    Total:$9,201 $9,232 $14,889 $20,725 $22,174 



     Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
          
     Tangible Book Value per Share
     Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
     (In thousands, except per share amounts)
    Total Stockholders' Equity$271,637 $276,159 $274,024 $263,081 $258,524 
    Less: goodwill 5,252  5,252  5,252  5,252  5,252 
    Less: preferred stock 16,563  26,213  28,923  25,723  25,723 
    Total tangible common stockholders' equity 249,822  244,694  239,849  232,106  227,549 
    Shares common shares outstanding 16,984  16,984  16,940  17,036  17,077 
    Book value per common share$15.02 $14.72 $14.47 $13.93 $13.63 
    Tangible book value per common share$14.71 $14.41 $14.16 $13.62 $13.32 
          
     Efficiency Ratios
     Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
     (In thousands, except for ratio %)
    Net interest income$27,741 $25,072 $25,154 $24,613 $24,064 
    Non-interest income (313) (600) 2,608  1,317  2,820 
    Total income 27,428  24,472  27,762  25,930  26,884 
    Non-interest expense 13,056  12,959  13,707  13,528  13,157 
    Efficiency Ratio 47.60% 52.95% 49.37% 52.17% 48.94%
          
          
          
     Distribution of Deposits by quarter
     Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
     (In thousands)
    Demand:     
       Non-Interest Bearing$595,167 $621,403 $588,207 $544,619 $492,014 
       Interest Bearing 810,535  724,020  668,262  644,453  619,163 
       Money Market 360,356  354,302  337,126  351,508  344,512 
    Sub-total:$1,766,058 $1,699,725 $1,593,595 $1,540,580 $1,455,689 
       Savings and Club 347,279  341,529  329,724  326,807  316,244 
       Certificates of Deposit 541,693  589,921  638,083  674,018  673,881 
    Total Deposits:$2,655,030 $2,631,175 $2,561,402 $2,541,405 $2,445,814 


    Contact:

    Thomas Coughlin,
    President & CEO
    Ryan Blake, COO
    1 (800) 680-6872


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