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BCB Bancorp, Inc. Earns $6.7 Million in Third Quarter 2023; Reports $0.39 EPS and Declares Quarterly Cash Dividend of $0.16 Per Share
Источник: Nasdaq GlobeNewswire / 19 окт 2023 07:30:01 America/Chicago
BAYONNE, N.J., Oct. 19, 2023 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $6.7 million for the third quarter of 2023, compared to $8.6 million in the second quarter of 2023, and $13.4 million for the third quarter of 2022. Earnings per diluted share for the third quarter of 2023 were $0.39, compared to $0.50 in the preceding quarter and $0.76 in the third quarter of 2022. Net income and earnings per diluted share for the third quarter of 2023, adjusted for the unrealized losses on equity investments, were $7.1 million and $0.41, respectively.
The Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on November 17, 2023 to common shareholders of record on November 3, 2023.
“We remain profitable with a favorable asset quality profile and solid liquidity and capital levels. The persistently high interest rate environment with a bias for staying elevated continues to adversely impact the availability and the pricing of liquidity for the banking industry. We have intentionally slowed down the growth of our balance sheet, as we are very focused on protecting our profitability, liquidity and capital position in an uncertain economic environment,” stated Thomas Coughlin, President and Chief Executive Officer.
“Our asset quality remains strong and our non-accrual loans to total loans ratio was 0.24 percent at September 30, 2023, compared to 0.17 percent at June 30, 2023, and 0.30 percent a year ago. We adopted the CECL methodology commencing January 1, 2023 and under the new methodology, we recorded a loan loss provision of $2.21 million during the third quarter of 2023 compared to $1.35 million during the preceding quarter,” said Mr. Coughlin.
Executive Summary
- Total deposits were $2.820 billion at September 30, 2023 compared to $2.886 billion at June 30, 2023.
- Net interest margin was 2.78 percent for the third quarter of 2023, compared to 2.92 percent for the second quarter of 2023, and 4.18 percent for the third quarter of 2022.
- Total yield on interest-earning assets increased 20 basis points to 5.31 percent for the third quarter of 2023, compared to 5.11 percent for the second quarter of 2023, and increased 67 basis points from 4.64 percent for the third quarter of 2022.
- Total cost of interest-bearing liabilities increased 37 basis points to 3.17 percent for the third quarter of 2023, compared to 2.80 percent for the second quarter of 2023, and increased 253 basis points from 0.64 percent for the third quarter of 2022.
- The efficiency ratio for the third quarter was 57.1 percent compared to 52.3 percent in the prior quarter, and 41.5 percent in the third quarter of 2022.
- The annualized return on average assets ratio for the third quarter was 0.70 percent, compared to 0.90 percent in the prior quarter, and 1.74 percent in the third quarter of 2022.
- The annualized return on average equity ratio for the third quarter was 8.9 percent, compared to 11.6 percent in the prior quarter, and 19.4 percent in the third quarter of 2022.
- The provision for credit losses was $2.21 million in the third quarter of 2023 compared to $1.35 million for the second quarter and no provision for the third quarter of 2022.
- The allowance for credit losses (“ACL”) as a percentage of non-accrual loans was 402.4 percent at September 30, 2023, compared to 530.3 percent for the prior quarter-end and 390.3 percent at September 30, 2022. The total non-accrual loans were $7.93 million at September 30, 2023, $5.70 million at June 30, 2023 and $8.51 million at September 30, 2022.
- Total loans receivable, net of the allowance for credit losses, increased 17.9 percent to $3.286 billion at September 30, 2023, up from $2.787 billion at September 30, 2022, but down 1.0% from $3.320 billion at June 30, 2023.
Balance Sheet Review
Total assets increased by $265.9 million, or 7.5 percent, to $3.812 billion at September 30, 2023, from $3.546 billion at December 31, 2022. The increase in total assets was mainly related to increases in total loans and in cash and cash equivalents.
Total cash and cash equivalents increased by $22.5 million, or 9.8 percent, to $251.9 million at September 30, 2023, from $229.4 million at December 31, 2022. The increase was primarily due to an increase in Federal Home Loan Bank (“FHLB”) borrowings and in deposits.
Loans receivable, net, increased by $240.4 million, or 7.9 percent, to $3.286 billion at September 30, 2023, from $3.045 billion at December 31, 2022. Total loan increases during 2023 included increases of $99.7 million in commercial real estate and multi-family loans, $88.5 million in commercial business loans, $40.3 million in construction loans, $1.7 million in residential one-to-four family loans and $9.6 million in home equity and consumer loans. The allowance for credit losses decreased $459,000 to $31.9 million, or 402.4 percent of non-accruing loans and 0.96 percent of gross loans, at September 30, 2023, as compared to an allowance for credit losses of $32.4 million, or 633.6 percent of non-accruing loans and 1.05 percent of gross loans, at December 31, 2022. Upon adoption of the CECL methodology, the Day One CECL adjustment resulted in a $4.2 million reduction to our ACL.
Total investment securities decreased by $15.0 million, or 13.7 percent, to $94.4 million at September 30, 2023, from $109.4 million at December 31, 2022, representing unrealized losses, calls and maturities, and repayments.
Deposit liabilities increased by $7.9 million, or 0.3 percent, to $2.820 billion at September 30, 2023, from $2.812 billion at December 31, 2022. Certificates of deposits and money market accounts increased $273.6 million and $43.2 million, offset by interest bearing demand, non-interest bearing and savings and club accounts which declined $308.9 million during the first nine months of 2023.
Debt obligations increased by $240.5 million to $660.3 million at September 30, 2023 from $419.8 million at December 31, 2022. The weighted average interest rate of FHLB advances was 4.45 percent at September 30, 2023 and 4.07 percent at December 31, 2022. The weighted average maturity of FHLB advances as of September 30, 2023 was 1.71 years. The interest rate of our subordinated debt balances was 8.35 percent at September 30, 2023 and 5.62 percent at December 31, 2022 due to the fixed-rate period on such debt ending as of July 31, 2023.
Stockholders’ equity increased by $12.4 million, or 4.3 percent, to $303.6 million at September 30, 2023, from $291.3 million at December 31, 2022. The increase was primarily attributable to the increase in retained earnings of $17.6 million, or 15.3 percent, to $132.7 million at September 30, 2023 from $115.1 million at December 31, 2022 partially offset by the $3.1 million increase in accumulated other comprehensive loss during the first nine months of 2023.
Third Quarter 2023 Income Statement Review
Net income was $6.7 million for the third quarter ended September 30, 2023 and $13.4 million for the third quarter ended September 30, 2022. The decline was primarily driven by lower net interest income, higher credit loss provisioning and higher non-interest expenses for the third quarter of 2023 as compared with the third quarter of 2022.
Net interest income decreased by $5.3 million, or 17.0 percent, to $25.7 million for the third quarter of 2023, from $31.0 million for the third quarter of 2022. The decrease in net interest income resulted from higher interest expense which was partially offset by higher interest income.
Interest income increased by $14.7 million, or 42.6 percent, to $49.1 million for the third quarter of 2023 from $34.4 million for the third quarter of 2022. The average balance of interest-earning assets increased $732.9 million, or 24.7 percent, to $3.698 billion for the third quarter of 2023 from $2.965 billion for the third quarter of 2022, while the average yield increased 67 basis points to 5.31 percent for the third quarter of 2023 from 4.64 percent for the third quarter of 2022.
Interest expense increased by $19.9 million to $23.4 million for the third quarter of 2023 from $3.4 million for the third quarter of 2022. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 253 basis points to 3.17 percent for the third quarter of 2023 from 0.64 percent for the third quarter of 2022, while the average balance of interest-bearing liabilities increased by $791.0 million to $2.947 billion for the third quarter of 2023 from $2.156 billion for the third quarter of 2022. The increase in the average cost of funds resulted primarily from the persistently high interest rate environment.
The net interest margin was 2.78 percent for the third quarter of 2023 compared to 4.18 percent for the third quarter of 2022. The decrease in the net interest margin compared to the third quarter of 2022 was the result of the increase in the cost of interest-bearing liabilities partially offset by the increase in the yield on interest-earning assets.
During the third quarter of 2023, the Company experienced $496,000 in net charge-offs compared to $918,000 in net charge offs in the third quarter of 2022. The Bank had non-accrual loans totaling $7.93 million, or 0.24 percent of gross loans, at September 30, 2023 as compared to $8.51 million, or 0.30 percent of gross loans, at September 30, 2022. The allowance for credit losses on loans was $31.9 million, or 0.96 percent of gross loans at September 30, 2023, and $33.2 million, or 1.18 percent of gross loans at September 30, 2022. The provision for credit losses was $2.21 million for the third quarter of 2023 compared to no provisioning for loan losses for the third quarter of 2022. Management believes that the allowance for credit losses on loans was adequate at September 30, 2023 and September 30, 2022.
Non-interest income decreased by $40,000 to $1.41 million for the third quarter of 2023 from $1.45 million for third quarter of 2022. The decrease in total non-interest income was mainly related to the decrease in BOLI income of $180,000. This was offset by fees and service charges increasing by $98,000.
Non-interest expense increased by $2.0 million, or 14.9 percent, to $15.5 million for the third quarter of 2023 from $13.5 million for the third quarter of 2022. The increase in operating expenses for the third quarter of 2023 was primarily driven by higher regulatory assessment charges, higher salaries and employee benefits, and increased data processing expenses compared to the third quarter of 2022. The number of full-time equivalent employees for the third quarter of 2023 was 296, as compared to 301 for the same period in 2022.
The income tax provision decreased by $2.8 million, or 51.2 percent, to $2.7 million for the third quarter of 2023 from $5.6 million for the third quarter of 2022. The consolidated effective tax rate was 28.7 percent for the third quarter of 2023 compared to 29.3 percent for the third quarter of 2022.
Year-to-Date Income Statement Review
Net income decreased by $10.1 million, or 30.1 percent, to $23.4 million for the first nine months of 2023 from $33.5 million for the first nine months of 2022. The decrease in net income was driven primarily by a higher loan loss provision and an increase in operating expenses for 2023 as compared to 2022.
Net interest income decreased by $3.6 million, or 4.3 percent, to $80.1 million for the first nine months of 2023 from $83.8 million for the first nine months of 2022. The decrease in net interest income resulted from a $49.7 million increase in interest expense, offset by an increase of $46.1 million in interest income.
The $46.1 million increase in interest income to $138.7 million for the first nine months of 2023, was a 49.8 percent increase from $92.6 million for the first nine months of 2022. The average balance of interest-earning assets increased $681.3 million, or 23.1 percent, to $3.626 billion for the first nine months of 2023, from $2.945 billion for the first nine months of 2022, while the average yield increased 91 basis points to 5.10 percent from 4.19 percent for the same comparable period. The increase in the average balance of interest-earning assets mainly related to an increase in the level of average loans receivable for the first nine months of 2023, as compared to the same period in 2022.
The increase in interest income mainly related to an increase in the average balance of loans receivable of $749.6 million to $3.271 billion for the first nine months of 2023, from $2.521 billion for the first nine months of 2022.
The $49.7 million increase in interest expense to $58.5 million for the first nine months of 2023, was a 563.4 percent increase from $8.8 million for the 2022 comparable period. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 220 basis points to 2.75 percent for the first nine months of 2023, from 0.55 percent for the first nine months of 2022, and an increase in the average balance of interest-bearing liabilities of $687.7 million, or 32.0 percent, to $2.834 billion from $2.146 billion over the same comparable periods. The increase in the average cost of funds primarily resulted from the high interest rate environment and an increase in the level of borrowed funds in the first nine months of 2023 compared to the same period in 2022.
Net interest margin was 2.95 percent for the first nine months of 2023, compared to 3.79 percent for the first nine months of 2022. The decrease in the net interest margin compared to the prior period was the result of an increase in the average volume of interest-bearing liabilities as well as an increase in the cost of interest-bearing liabilities.
During the first nine months of 2023, the Company experienced $471,000 in net charge offs compared to $1.3 million in net charge offs for the same period in 2022.The Bank had non-accrual loans totaling $7.93 million, or 0.24 percent, of gross loans at September 30, 2023 as compared to $8.51 million, or 0.30 percent of gross loans at September 30, 2022. The allowance for credit losses was $31.9 million, or 0.96 percent of gross loans at September 30, 2023, and $33.2 million, or 1.18 percent of gross loans at September 30, 2022. The provision for credit losses was $4.2 million for the first nine months of 2023 compared to a credit to the provision for loan losses of $2.6 million for the same period in 2022. Management believes that the allowance for credit losses was adequate at September 30, 2023 and September 30, 2022.
Non-interest income increased by $327,000 to $860,000 for the first nine months of 2023 from $533,000 for the first nine months of 2022. The improvement in total noninterest income was mainly related to a decrease of $1.2 million in the realized and unrealized losses on equity securities, partially offset by a decrease of $933,000 in BOLI income. The realized and unrealized losses on equity securities are based on market conditions.
Non-interest expense increased by $4.6 million, or 11.5 percent, to $44.0 million for the first nine months of 2023 from $39.5 million for the same period in 2022. The increase in operating expenses for 2023 was driven primarily by an increase in salaries and employee benefits, an increase in regulatory assessments, and higher data processing expenses. The number of full-time equivalent employees for the period ended September 30, 2023 was 300, as compared with 302 for the same period in 2022.
The income tax provision decreased by $4.5 million or 32.5 percent, to $9.4 million for the first nine months of 2023 from $13.9 million for the same period in 2022. The decrease in the income tax provision was a result of the lower taxable income for the nine months ended September 30, 2023 compared to the same period in 2022. The consolidated effective tax rate was 28.6 percent for the first nine months of 2023 compared to 29.3 percent for the first nine months of 2022.
Asset Quality
The Bank had non-accrual loans totaling $7.93 million, or 0.24 percent, of gross loans at September 30, 2023, as compared to $5.1 million, or 0.17 percent, of gross loans at December 31, 2022. The allowance for credit losses was $31.9 million, or 0.96 percent of gross loans at September 30, 2023, and $32.4 million, or 1.05 percent of gross loans at December 31, 2022. The allowance for credit losses was 402.4 percent of non-accrual loans at September 30, 2023, and 633.6 percent of non-accrual loans at December 31, 2022.
About BCB Bancorp, Inc.
Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has 24 branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branches in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.
Forward-Looking Statements
This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.
The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations; our ability to manage liquidity in a rapidly changing and unpredictable market; supply chain disruptions, labor shortages; and additional interest rate increases by the Federal Reserve. Other factors that could cause actual results to differ materially from forward-looking statements or historical performance: the inability to close loans in our pipeline; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; supply chain disruptions; any future pandemics and the related adverse local and national economic consequences; civil unrest in the communities that the company serves; customer acceptance of the Bank’s products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; economic conditions; the impact, extent and timing of technological changes, capital management activities, actions of governmental agencies and legislative and regulatory actions and reforms, other factors discussed elsewhere in this release, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year-ended December 31, 2022, and in Part II, Item 1A of our quarterly report on Form 10-Q for the quarter-ended March 31, 2023, and our other periodic reports that we file with the SEC.
Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This press release also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s financial results for the periods in question.
The Company provides measurements and ratios based on tangible stockholders’ equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
Statements of Income - Three Months Ended, September 30, 2023 June 30, 2023 September 30, 2022 September 30, 2023 vs. June 30, 2023 September 30, 2023 vs. September 30, 2022 Interest and dividend income: (In thousands, except per share amounts, Unaudited) Loans, including fees $ 44,133 $ 42,644 $ 32,302 3.5 % 36.6 % Mortgage-backed securities 217 184 173 17.9 % 25.4 % Other investment securities 1,045 1,070 1,103 -2.3 % -5.3 % FHLB stock and other interest earning assets 3,672 3,339 822 10.0 % 346.7 % Total interest and dividend income 49,067 47,237 34,400 3.9 % 42.6 % Interest expense: Deposits: Demand 4,556 4,190 1,169 8.7 % 289.7 % Savings and club 182 143 113 27.3 % 61.1 % Certificates of deposit 10,922 8,474 1,087 28.9 % 904.8 % 15,660 12,807 2,369 22.3 % 561.0 % Borrowings 7,727 7,441 1,080 3.8 % 615.5 % Total interest expense 23,387 20,248 3,449 15.5 % 578.1 % Net interest income 25,680 26,989 30,951 -4.9 % -17.0 % Provision for credit losses 2,205 1,350 - 63.3 % - Net interest income after provision for credit losses 23,475 25,639 30,951 -8.4 % -24.2 % Non-interest income (loss): Fees and service charges 1,349 1,442 1,251 -6.4 % 7.8 % Gain on sales of loans 19 - 18 - 5.6 % Realized and unrealized loss on equity investments (494 ) (669 ) (559 ) -26.2 % -11.6 % BOLI income 466 267 646 74.5 % -27.9 % Other 66 78 90 -15.4 % -26.7 % Total non-interest income (loss) 1,406 1,118 1,446 25.8 % -2.8 % Non-interest expense: Salaries and employee benefits 7,524 7,711 6,944 -2.4 % 8.4 % Occupancy and equipment 2,622 2,560 2,608 2.4 % 0.5 % Data processing and communications 1,787 1,795 1,520 -0.4 % 17.6 % Professional fees 560 622 614 -10.0 % -8.8 % Director fees 274 270 375 1.5 % -26.9 % Regulatory assessment fees 1,111 796 264 39.6 % 320.8 % Advertising and promotions 317 350 286 -9.4 % 10.8 % Other real estate owned, net 1 1 1 0.0 % 0.0 % Other 1,267 601 841 110.8 % 50.7 % Total non-interest expense 15,463 14,706 13,453 5.1 % 14.9 % Income before income tax provision 9,418 12,051 18,944 -21.8 % -50.3 % Income tax provision 2,707 3,447 5,552 -21.5 % -51.2 % Net Income 6,711 8,604 13,392 -22.0 % -49.9 % Preferred stock dividends 173 174 174 -0.7 % -0.6 % Net Income available to common stockholders $ 6,538 $ 8,430 $ 13,218 -22.4 % -50.5 % Net Income per common share-basic and diluted Basic $ 0.39 $ 0.50 $ 0.78 -22.5 % -50.1 % Diluted $ 0.39 $ 0.50 $ 0.76 -22.5 % -49.1 % Weighted average number of common shares outstanding Basic 16,830 16,824 16,997 0.0 % -1.0 % Diluted 16,854 16,831 17,404 0.1 % -3.2 % Statements of Income - Nine Months Ended, September 30, 2023 September 30, 2022 September 30, 2023 vs. September 30, 2022 Interest and dividend income: (In thousands, except per share amounts, Unaudited) Loans, including fees $ 125,666 $ 87,404 43.8 % Mortgage-backed securities 587 379 54.9 % Other investment securities 3,235 2,990 8.2 % FHLB stock and other interest earning assets 9,168 1,812 406.0 % Total interest and dividend income 138,656 92,585 49.8 % Interest expense: Deposits: Demand 11,900 2,873 314.2 % Savings and club 443 331 33.8 % Certificates of deposit 25,849 2,916 786.5 % 38,192 6,120 524.1 % Borrowings 20,324 2,701 652.5 % Total interest expense 58,516 8,821 563.4 % Net interest income 80,140 83,764 -4.3 % Provision (benefit) for credit losses 4,177 (2,575 ) -262.2 % Net interest income after provision (benefit) for credit losses 75,963 86,339 -12.0 % Non-interest income (loss): Fees and service charges 3,889 3,678 5.7 % Gain on sales of loans 25 126 -80.2 % Realized and unrealized loss on equity investments (4,390 ) (5,546 ) -20.8 % BOLI income 1,154 2,087 -44.7 % Other 182 188 -3.2 % Total non-interest loss 860 533 61.4 % Non-interest expense: Salaries and employee benefits 22,853 20,395 12.1 % Occupancy and equipment 7,734 7,976 -3.0 % Data processing and communications 5,247 4,454 17.8 % Professional fees 1,748 1,597 9.5 % Director fees 809 992 -18.4 % Regulatory assessments 2,443 812 200.9 % Advertising and promotions 945 681 38.8 % Other real estate owned, net 3 6 -50.0 % Other 2,241 2,555 -12.3 % Total non-interest expense 44,023 39,468 11.5 % Income before income tax provision 32,800 47,404 -30.8 % Income tax provision 9,379 13,897 -32.5 % Net Income 23,421 33,507 -30.1 % Preferred stock dividends 520 624 -16.7 % Net Income available to common stockholders $ 22,901 $ 32,883 -30.4 % Net Income per common share-basic and diluted Basic $ 1.36 $ 1.94 -29.9 % Diluted $ 1.35 $ 1.89 -28.6 % Weighted average number of common shares outstanding Basic 16,868 16,986 -0.7 % Diluted 16,951 17,369 -2.4 % Statements of Financial Condition September 30, 2023 June 30, 2023 December 31, 2022 September 30, 2023 vs. June 30, 2023 September 30, 2023 vs. December 31,2022 ASSETS (In Thousands, Unaudited) Cash and amounts due from depository institutions $ 16,772 $ 13,378 $ 11,520 25.4 % 45.6 % Interest-earning deposits 235,144 259,834 217,839 -9.5 % 7.9 % Total cash and cash equivalents 251,916 273,212 229,359 -7.8 % 9.8 % Interest-earning time deposits 735 735 735 - - Debt securities available for sale 86,172 87,648 91,715 -1.7 % -6.0 % Equity investments 8,272 12,825 17,686 -35.5 % -53.2 % Loans held for sale 472 - 658 - -28.3 % Loans receivable, net of allowance for credit losses of $31,914, $30,205 and $32,373, respectively 3,285,727 3,319,721 3,045,331 -1.02 % 7.89 % Federal Home Loan Bank of New York stock, at cost 31,629 31,667 20,113 -0.1 % 57.3 % Premises and equipment, net 13,363 13,561 10,508 -1.5 % 27.2 % Accrued interest receivable 16,175 15,384 13,455 5.1 % 20.2 % Other real estate owned 75 75 75 - - Deferred income taxes 16,749 16,445 16,462 1.8 % 1.7 % Goodwill and other intangibles 5,288 5,324 5,382 -0.7 % -1.7 % Operating lease right-of-use asset 12,953 13,658 13,520 -5.2 % -4.2 % Bank-owned life insurance (“BOLI”) 72,809 72,344 71,656 0.6 % 1.6 % Other assets 9,785 10,254 9,538 -4.6 % 2.6 % Total Assets $ 3,812,120 $ 3,872,853 $ 3,546,193 -1.6 % 7.5 % LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Non-interest bearing deposits $ 523,912 $ 620,509 $ 613,910 -15.6 % -14.7 % Interest bearing deposits 2,295,644 2,265,212 2,197,697 1.3 % 4.5 % Total deposits 2,819,556 2,885,721 2,811,607 -2.3 % 0.3 % FHLB advances 622,674 622,536 382,261 0.0 % 62.9 % Subordinated debentures 37,624 37,624 37,508 0.0 % 0.3 % Operating lease liability 13,318 14,003 13,859 -4.9 % -3.9 % Other liabilities 15,312 13,346 9,704 14.7 % 57.8 % Total Liabilities 3,508,484 3,573,230 3,254,939 -1.8 % 7.8 % STOCKHOLDERS’ EQUITY Preferred stock: $0.01 par value, 10,000 shares authorized - - - Additional paid-in capital preferred stock 20,783 21,003 21,003 -1.0 % -1.0 % Common stock: no par value, 40,000 shares authorized - - - 0.0 % 0.0 % Additional paid-in capital common stock 198,097 197,521 196,164 0.3 % 1.0 % Retained earnings 132,729 128,867 115,109 3.0 % 15.3 % Accumulated other comprehensive loss (9,626 ) (9,421 ) (6,491 ) 2.2 % 48.3 % Treasury stock, at cost (38,347 ) (38,347 ) (34,531 ) 0.0 % 11.1 % Total Stockholders’ Equity 303,636 299,623 291,254 1.3 % 4.3 % Total Liabilities and Stockholders’ Equity $ 3,812,120 $ 3,872,853 $ 3,546,193 -1.6 % 7.5 % Outstanding common shares 16,848 16,788 16,931 Three Months Ended September 30,2023 2023 2022 Average Balance Interest Earned/Paid Average Yield/Rate (3) Average Balance Interest Earned/Paid Average Yield/Rate (3) (Dollars in thousands) Interest-earning assets: Loans Receivable (4)(5) $ 3,330,446 $ 44,133 5.30 % $ 2,699,093 $ 32,302 4.79 % Investment Securities 96,723 1262 5.22 % 112,172 1,276 4.55 % FHLB stock and other interest-earning assets 270,729 3,672 5.43 % 153,705 822 2.14 % Total Interest-earning assets 3,697,898 49,067 5.31 % 2,964,970 34,400 4.64 % Non-interest-earning assets 127,780 106,750 Total assets $ 3,825,678 $ 3,071,720 Interest-bearing liabilities: Interest-bearing demand accounts $ 628,804 $ 2,244 1.43 % $ 774,870 $ 707 0.36 % Money market accounts 331,813 2,311 2.79 % 353,821 462 0.52 % Savings accounts 300,484 182 0.24 % 343,515 113 0.13 % Certificates of Deposit 1,024,900 10,923 4.26 % 545,293 1,087 0.80 % Total interest-bearing deposits 2,286,001 15,660 2.74 % 2,017,500 2,369 0.47 % Borrowed funds 660,773 7,727 4.68 % 138,314 1,080 3.12 % Total interest-bearing liabilities 2,946,774 23,387 3.17 % 2,155,813 3,449 0.64 % Non-interest-bearing liabilities 577,963 640,102 Total liabilities 3,524,737 2,795,916 Stockholders’ equity 300,941 275,804 Total liabilities and stockholders’ equity $ 3,825,678 $ 3,071,720 Net interest income $ 25,680 $ 30,951 Net interest rate spread(1) 2.13 % 4.00 % Net interest margin(2) 2.78 % 4.18 % (1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. (2) Net interest margin represents net interest income divided by average total interest-earning assets. (3) Annualized. (4) Excludes allowance for credit losses. (5) Includes non-accrual loans which are immaterial to the yield. Nine Months Ended September 30, 2023 2022 Average Balance Interest Earned/Paid Average Yield/Rate (3) Average Balance Interest Earned/Paid Average Yield/Rate (3) (Dollars in thousands) Interest-earning assets: Loans Receivable (4)(5) $ 3,271,018 $ 125,666 5.12 % $ 2,521,375 $ 87,404 4.62 % Investment Securities 102,143 3,822 4.99 % 109,422 3,369 4.11 % FHLB stock and other interest-earning assets 252,999 9,168 4.83 % 314,024 1,812 0.77 % Total Interest-earning assets 3,626,161 138,656 5.10 % 2,944,821 92,585 4.19 % Non-interest-earning assets 123,262 105,368 Total assets $ 3,749,422 $ 3,050,189 Interest-bearing liabilities: Interest-bearing demand accounts $ 684,691 $ 6,242 1.22 % $ 759,307 $ 1,674 0.29 % Money market accounts 325,923 5,657 2.31 % 351,846 1,199 0.45 % Savings accounts 311,733 443 0.19 % 342,199 331 0.13 % Certificates of Deposit 926,684 25,849 3.72 % 573,951 2,915 0.68 % Total interest-bearing deposits 2,249,032 38,192 2.26 % 2,027,303 6,120 0.40 % Borrowed funds 585,028 20,324 4.63 % 119,059 2,701 3.02 % Total interest-bearing liabilities 2,834,060 58,516 2.75 % 2,146,362 8,821 0.71 % Non-interest-bearing liabilities 618,037 631,097 Total liabilities 3,452,097 2,777,459 Stockholders’ equity 297,326 272,730 Total liabilities and stockholders’ equity $ 3,749,422 $ 3,050,189 Net interest income $ 80,140 $ 83,764 Net interest rate spread(1) 2.35 % 3.64 % Net interest margin(2) 2.95 % 3.79 % (1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. (2) Net interest margin represents net interest income divided by average total interest-earning assets. (3) Presented on an annualized basis, where appropriate. (4) Excludes allowance for loan losses. (5) Includes non-accrual loans which are immaterial to the yield. Financial Condition data by quarter Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 (In thousands, except book values) Total assets $ 3,812,120 $ 3,872,853 $ 3,763,056 $ 3,546,193 $ 3,265,612 Cash and cash equivalents 251,916 273,212 261,075 229,359 221,024 Securities 94,444 100,473 101,446 109,401 111,159 Loans receivable, net 3,285,727 3,319,721 3,231,864 3,045,331 2,787,015 Deposits 2,819,556 2,885,721 2,867,209 2,811,607 2,712,946 Borrowings 660,298 660,160 569,965 419,769 249,573 Stockholders’ equity 303,636 299,623 297,618 291,254 282,682 Book value per common share1 $ 16.79 $ 16.60 $ 16.38 $ 15.96 $ 15.42 Tangible book value per common share2 $ 16.48 $ 16.28 $ 16.07 $ 15.65 $ 15.11 Operating data by quarter Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 (In thousands, except for per share amounts) Net interest income $ 25,680 $ 26,989 $ 27,471 $ 30,181 $ 30,951 Provision (benefit) for credit losses 2,205 1,350 622 (500 ) - Non-interest income (loss) 1,406 1,118 (1,664 ) 1,062 1,446 Non-interest expense 15,463 14,706 13,854 16,037 13,453 Income tax expense 2,707 3,447 3,225 3,634 5,552 Net income $ 6,711 $ 8,604 $ 8,106 $ 12,072 $ 13,392 Net income per diluted share $ 0.39 $ 0.50 $ 0.46 $ 0.69 $ 0.76 Common Dividends declared per share $ 0.16 $ 0.16 $ 0.16 $ 0.16 $ 0.16 Financial Ratios(3) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Return on average assets 0.70 % 0.90 % 0.90 % 1.46 % 1.74 % Return on average stockholders’ equity 8.92 % 11.57 % 11.05 % 16.99 % 19.42 % Net interest margin 2.78 % 2.92 % 3.15 % 3.76 % 4.18 % Stockholders’ equity to total assets 7.97 % 7.74 % 7.91 % 8.21 % 8.66 % Efficiency Ratio4 57.09 % 52.32 % 53.68 % 51.33 % 41.53 % Asset Quality Ratios Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 (In thousands, except for ratio %) Non-Accrual Loans $ 7,931 $ 5,696 $ 5,058 $ 5,109 $ 8,505 Non-Accrual Loans as a % of Total Loans 0.24 % 0.17 % 0.16 % 0.17 % 0.30 % ACL as % of Non-Accrual Loans 402.4 % 530.3 % 571.0 % 633.6 % 390.3 % Individually Analyzed Loans 35,868 28,250 17,585 28,272 40,524 Classified Loans 42,807 28,250 17,585 17,816 30,180 (1) Calculated by dividing stockholders’ equity, less preferred equity, to shares outstanding. (2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.” (3) Ratios are presented on an annualized basis, where appropriate. (4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.” Recorded Investment in Loans Receivable by quarter Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 (In thousands) Residential one-to-four family $ 251,845 $ 250,345 $ 246,683 $ 250,123 $ 242,238 Commercial and multi-family 2,444,887 2,490,883 2,466,932 2,345,229 2,164,320 Construction 185,202 179,156 162,553 144,931 153,103 Commercial business 370,512 368,948 327,598 282,007 205,661 Home equity 66,046 61,595 58,822 56,888 56,064 Consumer 3,647 3,994 3,383 3,240 2,545 $ 3,322,139 $ 3,354,921 $ 3,265,971 $ 3,082,418 $ 2,823,931 Less: Deferred loan fees, net (4,498 ) (4,995 ) (5,225 ) (4,714 ) (3,721 ) Allowance for credit losses (31,914 ) (30,205 ) (28,882 ) (32,373 ) (33,195 ) Total loans, net $ 3,285,727 $ 3,319,721 $ 3,231,864 $ 3,045,331 $ 2,787,015 Non-Accruing Loans in Portfolio by quarter Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 (In thousands) Residential one-to-four family $ 178 $ 178 $ 237 $ 243 $ 263 Commercial and multi-family 3,267 - 340 346 757 Construction 2,886 4,145 3,217 3,180 3,180 Commercial business 1,600 1,373 1,264 1,340 4,305 Home equity - - - - - Total: $ 7,931 $ 5,696 $ 5,058 $ 5,109 $ 8,505 Distribution of Deposits by quarter Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 (In thousands) Demand: Non-Interest Bearing $ 523,912 $ 620,509 $ 604,935 $ 613,910 $ 610,425 Interest Bearing 574,577 714,420 686,576 757,614 726,012 Money Market 348,732 328,543 361,558 305,556 370,353 Sub-total: $ 1,447,221 $ 1,663,472 $ 1,653,069 $ 1,677,080 $ 1,706,790 Savings and Club 293,962 307,435 319,131 329,753 338,864 Certificates of Deposit 1,078,373 914,814 895,009 804,774 667,291 Total Deposits: $ 2,819,556 $ 2,885,721 $ 2,867,209 $ 2,811,607 $ 2,712,945 Reconciliation of GAAP to Non-GAAP Financial Measures by quarter Tangible Book Value per Share Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 (In thousands, except per share amounts) Total Stockholders’ Equity $ 303,636 $ 299,623 $ 297,618 $ 291,254 $ 282,682 Less: goodwill 5,252 5,252 5,252 5,252 5,252 Less: preferred stock 20,783 21,003 21,003 21,003 21,003 Total tangible common stockholders’ equity 277,601 273,368 271,363 264,999 256,427 Shares common shares outstanding 16,848 16,788 16,884 16,931 16,974 Book value per common share $ 16.79 $ 16.60 $ 16.38 $ 15.96 $ 15.42 Tangible book value per common share $ 16.48 $ 16.28 $ 16.07 $ 15.65 $ 15.11 Efficiency Ratios Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 (In thousands, except for ratio %) Net interest income $ 25,680 $ 26,989 $ 27,471 $ 30,181 $ 30,951 Non-interest income (loss) 1,406 1,118 (1,664 ) 1,062 1,446 Total income 27,086 28,107 25,807 31,243 32,397 Non-interest expense 15,463 14,706 13,854 16,037 13,453 Efficiency Ratio 57.09% 52.32% 53.68% 51.33% 41.53% CONTACT: THOMAS COUGHLIN PRESIDENT & CEO JAWAD CHAUDHRY, CFO (201) 823-0700 
