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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

BCB Bancorp, Inc.
BCB Bancorp, Inc.

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