BCB Bancorp, Inc. Reports Net Income of $13.4 Million in Third Quarter 2022; Net Loans Increase 20.9 Percent YTD and NIM Expands to 4.18 Percent; Declares Quarterly Cash Dividend of $0.16 Per Share

BAYONNE, N.J., Oct. 20, 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 $5.1 million, or 60.9 percent, to $13.4 million for the third quarter of 2022, compared with $8.3 million for the third quarter of 2021, and increased 31.8 percent compared to $10.2 million in the immediate prior quarter. Earnings per diluted share for the third quarter of 2022 were $0.76, compared to $0.58 in the preceding quarter and $0.47 in the third quarter of 2021.

For the first nine months of the year, net income increased 42.6 percent to $33.5 million, compared to $23.5 million for the first nine months of 2021. Year-to-date, earnings per diluted share were $1.89 compared to $1.31 for the first nine 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 November 15, 2022 to common shareholders of record on November 1, 2022.

"We delivered record earnings for the third quarter, highlighted by strong loan production, net interest margin expansion, and prudent expense management. We remain committed to maintaining a stable liquidity profile in an increasingly competitive rate environment while closely monitoring and protecting our future net interest margin," stated Thomas Coughlin, President and Chief Executive Officer. 

"Additionally, our asset quality remains strong and is reflective of the disciplined underwriting and credit culture of our organization. We continue to see robust loan demand that is indicative of our customers' desire to continue to bank with us as their lender of choice. We are also very well-positioned to benefit from the market disruptions caused by recent regional mergers. However, we are being mindful of the headwinds posed by the rising rate environment and the broader macroeconomic conditions as we pursue future growth initiatives."

"Due to the continued, solid performance of our asset quality metrics, we recorded no loan loss provision during the third quarter of 2022. Our non-accrual loans to total loans ratio decreased to 0.30 percent at September 30, 2022, from 0.35 percent at June 30, 2022, and 0.89 percent a year ago," said Mr. Coughlin.

"During the third quarter, we completed a third round private placement of our Series I Noncumulative Perpetual Preferred Stock. Over the last ten months, we issued a total of $10.0 million of such stock over three rounds of funding. As a result of these strategic transactions, we have further strengthened our capital position," concluded Mr. Coughlin.

Executive Summary

• Net income was $13.4 million in the third quarter of 2022, compared to $10.2 million in the prior quarter, and $8.3 million in the third quarter a year ago.
• Earnings per diluted share were $0.76 in the third quarter of 2022, compared to $0.58 in the prior quarter, and $0.47 in the third quarter of 2021.
• Net interest margin was 4.18 percent for the third quarter of 2022, a 44 basis point increase compared to 3.74 percent for the second quarter of 2022, and a 72 basis point increase compared to 3.46 percent for the third quarter of 2021.
  • Total cost of interest-bearing liabilities increased 14 basis points to 0.64 percent for the third quarter of 2022, compared to 0.50 percent for the second quarter of 2022, and decreased two basis points from 0.66 percent for the third quarter of 2021.
  • The interest rate spread increased by 40 basis points to 4.00 percent for the third quarter of 2022, compared to 3.60 percent for the second quarter of 2022, and increased 71 basis points from 3.29 percent for the third quarter of 2021.
• The efficiency ratio for the third quarter was 41.5 percent compared to 47.6 percent in the prior quarter, and 52.2 percent in the third quarter of 2021.
• The annualized return on average assets ratio for the third quarter was 1.74 percent, compared to 1.32 percent in the prior quarter, and 1.13 percent in the third quarter of 2021.
• The annualized return on average equity ratio for the third quarter was 19.4 percent, compared to 15.0 percent in the prior quarter, and 12.8 percent in the third quarter of 2021.
• The Company had no provision for loan losses for the third quarter or the second quarter of 2022. This compared to a $680,000 provision for loan losses for the third quarter of 2021.
• Allowance for loan losses as a percentage of non-accrual loans was 390.3 percent at September 30, 2022, compared to 370.7 percent for the prior quarter, and 184.1 percent at September 30, 2021.
• Total non-accrual loans decreased to $8.5 million at September 30, 2022, compared to $9.2 million at June 30, 2022, and $20.7 million at September 30, 2021.
• Total loans receivable, net of allowance for loan losses, increased 21.7 percent to $2.787 billion at September 30, 2022, from $2.290 billion at September 30, 2021.
• Total deposits increased 6.7 percent to $2.713 billion at September 30, 2022, up from $2.541 billion at September 30, 2021, with noninterest bearing deposits increasing 12.1 percent over a year ago.
• The Company's Board of Directors declared a regular quarterly cash dividend of $0.16 per share, payable November 15, 2022 to common shareholders of record November 1, 2022.

Balance Sheet Review

Total assets increased by $298.1 million, or 10.0 percent, to $3.266 billion at September 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 $190.6 million, or 46.3 percent, to $221.0 million at September 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 $479.9 million, or 20.5 percent, to $2.824 billion at September 30, 2022, from $2.344 billion at December 31, 2021. Total loan increases for the first nine months of 2022 included increases of $444.1 million in commercial real estate and multi-family loans, $17.7 million in residential one-to-four family loans, $14.5 million in commercial business loans, and $5.6 million in home equity loans, , partly offset by decreases of $1.2 million in consumer loans, and $801,000 in construction loans. The allowance for loan losses decreased $3.9 million to $33.2 million, or 390.3 percent of non-accruing loans and 1.18 percent of gross loans, at September 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 increased by $786,000, or 0.7 percent, to $111.2 million at September 30, 2022, from $110.4 million at December 31, 2021, representing repayments, calls and maturities, and purchases of $15.5 million, partly offset by sales of $1.2 million.

Deposit liabilities increased by $151.5 million, or 5.9 percent, to $2.713 billion at September 30, 2022, from $2.561 billion at December 31, 2021. Total increases for the nine months ended September 30, 2022, included $57.7 million in NOW deposit accounts, $33.2 million in money market checking accounts, $29.2 million in certificates of deposit, including listing service and brokered deposit accounts, $22.2 million in non-interest-bearing deposit accounts, and $9.1 million in savings and club accounts. The weighted average interest rate of certificates of deposit was 0.70 percent at September 30, 2022 and 0.72 percent at December 31, 2021.

Debt obligations increased by $140.6 million to $249.6 million at September 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 short-term FHLB borrowings. The weighted average interest rate of FHLB advances was 2.63 percent at September 30, 2022, and 1.39 percent at December 31, 2021. The fixed interest rate of our subordinated debt balances was 5.625 percent at September 30, 2022, and at December 31, 2021.

Stockholders' equity increased by $8.7 million, or 3.2 percent, to $282.7 million at September 30, 2022, from $274.0 million at December 31, 2021. The increase was primarily attributable to an increase in retained earnings of $24.7 million, or 30.5 percent, to $105.9 million at September 30, 2022, from $81.2 million at December 31, 2021, related to the net effect of net income less dividends paid for the nine months ended September 30, 2022. The increase was partly offset by a decrease of $7.9 million in additional paid-in-capital for preferred stock, an increase in accumulated other comprehensive losses of $7.3 million, and an increase in treasury stock of $2.0 million. 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 $6.8 million of Series I 3.0 percent preferred stock. The decrease in accumulated other comprehensive income over the prior year was based upon unfavorable market conditions related to the Company's available-for-sale debt securities.

Third Quarter 2022 Income Statement Review

Net interest income increased by $6.3 million, or 25.8 percent, to $30.9 million for the third quarter of 2022, from $24.6 million for the third quarter of 2021. The increase in net interest income resulted from a $6.3 million increase in interest income as well as a decrease of $82,000 in interest expense.

Interest income increased by $6.3 million, or 22.2 percent, to $34.4 million for the third quarter of 2022, from $28.1 million for the third quarter of 2021. The average balance of interest-earning assets increased $116.1 million, or 4.1 percent, to $2.965 billion for the third quarter of 2022, from $2.849 billion for the third quarter of 2021, while the average yield increased 69 basis points to 4.64 percent for the third quarter of 2022, from 3.95 percent for the third 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 third quarter of 2022, as compared to the third quarter of 2021.

The increase in interest income mainly related to an increase in the average balance of loans receivable of $358.4 million to $2.699 billion for the third quarter of 2022, from $2.341 billion for the third quarter of 2021. The increase in the average balance of loans receivable was the result the of the strength of the Company's loan pipeline. Interest income on loans also included $314,000 of amortization of purchase credit fair value adjustments for the third quarter of 2022 related to a prior acquisition, which added approximately four basis points to the average yield on interest earning assets.

Interest expense decreased by $82,000, or 2.3 percent, to $3.4 million for the third quarter of 2022, from $3.5 million for the third quarter of 2021. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 2 basis points to 0.64 percent for the third quarter of 2022, from 0.66 percent for the third quarter of 2021, partly offset by an increase in the average balance of interest-bearing liabilities of $12.7 million, or 0.6 percent, to $2.156 billion for the third quarter of 2022, from $2.143 billion for the third quarter of 2021. The decrease in the average cost of funds primarily resulted from the Company's focus on managing funding costs.

Net interest margin was 4.18 percent for the third quarter of 2022, compared to 3.46 percent for the third quarter of 2021. The increase in the net interest margin was largely the result of an increase in the average volume and average rate on loans receivable. and to a much lesser extent to a decrease in funding costs, partly offset by an increase in the average balance of interest-bearing liabilities.

The Company's overall asset quality is trending favorably with continued reduction in non-accrual loans.  A review of the existing level of loan loss reserves and the asset quality resulted in no provision for loan losses for the third quarter of 2022. This compared to a $680,000 provision for loan losses during the third quarter of 2021. During the third quarter of 2022, the Company experienced $918,000 in net charge-offs compared to net recoveries of $4,000 for the third quarter of 2021. The Bank had non-accrual loans totaling $8.5 million, or 0.30 percent of gross loans at September 30, 2022, as compared to $20.7 million, or 0.89 percent of gross loans at September 30, 2021. The allowance for loan losses was $33.2 million, or 1.18 percent of gross loans at September 30, 2022, and $38.2 million, or 1.64 percent of gross loans at September 30, 2021.

Noninterest income increased by $129,000, or 9.8 percent, to $1.4 million for the third quarter of 2022, from $1.3 million in income for the third quarter of 2021. The increase in total noninterest income was mainly related to an increase in fees and service charges and other non-interest income, partly offset by an increase in the loss on equity securities, a decrease in BOLI income, and a decrease in the gain on the sale of loans. Fees and service charge income increased by $538,000, or 75.5 percent, to $1.3 million for the third quarter of 2022, compared to $713,000 for the third quarter of 2021. Fees and service charge income include revenue from loan servicing fees, ATM fees, and other customer account fees. The loss on equity securities for the third quarter of 2022 was $559,000 compared to an unrealized loss of $307,000 for the third quarter 2021. The increase in losses on equity securities was due to the rising rate environment.

Noninterest expense decreased by $75,000, or 0.6 percent, to $13.5 million for the third quarter of 2022, from $13.5 million for the third quarter of 2021. The decrease was mainly related to a decrease in occupancy and debt extinguishment expenses, as well as other non-interest expense. The Company recognized an expense of $337,000 for a loss on extinguishment of debt related to the prepayment of higher-cost FHLB borrowings in the third quarter of 2021. There was no comparable expense in the third 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 $433,000, or 6.7 percent, to $6.9 million for the third quarter of 2022, from $6.5 million for the third quarter of 2021. The increase mainly related to an increase in the number of fulltime equivalent employees to 301 for the third quarter of 2022, compared to 291 for the same period in 2021.

The income tax provision increased by $2.2 million, or 63.3 percent, to $5.6 million for the third quarter of 2022, from $3.4 million for the third quarter of 2021. The increase in the income tax provision was a result of higher taxable income for the third quarter of 2022, as compared with that same period for 2021. The consolidated effective tax rate for the third quarter of 2022 was 29.3 percent compared to 29.0 percent for the third quarter of 2021.

Year-to-Date 2022 Income Statement Review

Net interest income increased by $11.5 million, or 16.0 percent, to $83.8 million for the first nine months of 2022, from $72.2 million for the first nine months of 2021. The increase in net interest income resulted from an increase of $8.4 million in total interest income as well as a decrease of $3.2 million in total interest expense.

Interest income increased by $8.4 million, or 9.9 percent, to $92.6 million for the first nine months of 2022, from $84.2 million for the first nine months of 2021. The average balance of interest-earning assets increased $168.9 million, or 6.1 percent, to $2.945 billion for the first nine months of 2022, from $2.776 billion for the first nine months of 2021, while the average yield increased 14 basis points to 4.19 percent for the first nine months of 2022, from 4.05 percent for the first nine 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 loans receivable for the first nine months of 2022, as compared to the first nine months of 2021.

The increase in interest income mainly related to an increase in the average balance of loans receivable of $184.4 million to $2.521 billion for the first nine months of 2022, from $2.337 billion for the first nine 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 for the first nine months of 2022 also included $622,000 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 decreased by $3.2 million, or 26.4 percent, to $8.8 million for the first nine months of 2022, from $12.0 million for the first nine months of 2021. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 4 basis points to 0.71 percent for the first nine months of 2022, from 0.75 percent for the first nine months of 2021, partly offset by an increase in the average balance of interest-bearing liabilities of $15.6 million, or 0.7 percent, to $2.146 billion for the first nine months of 2022, from $2.131 billion for the first nine months of 2021. The decrease in the average cost of funds primarily resulted from the low interest rate environment in 2021 and the Company's focus on managing funding costs.

Net interest margin was 3.79 percent for the first nine months of 2022, compared to 3.47 percent for the first nine months of 2021. The increase in the net interest margin compared to the first nine months of 2021 was the result of an increase in the average volume of 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 nine months of 2022, compared to a $4.8 million provision for loan losses for the first nine months of 2021. During the first nine months of 2022, the Company recorded $1.3 million in net charge offs compared to $323,000 in net charge offs for the first nine months of 2021.

Noninterest income decreased by $5.6 million, or 91.2 percent, to $533,000 for the first nine months of 2022, from $6.1 million for third quarter of 2021. The decrease in total noninterest income was mainly related to an increase in the 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 loss on equity securities increased $5.5 million to $5.5 million for the first nine months of 2022, from a loss of $4,000 for the first nine months of 2021. The losses on equity securities are due to conditions. Gains on sales of loans decreased by $449,000, or 78.1 percent, to $126,000 for the first nine months of 2022, from $575,000 for the first nine 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 nine months of 2021 with no comparable gain or loss for the first nine months of 2022. These decreases were partly offset by an increase in fees and service charge income resulting from loan servicing income, ATM fees, and other customer account fees.

Noninterest expense decreased by $800,000, or 2.0 percent, to $39.5 million for the first nine months of 2022, from $40.3 million for the first nine 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 $1.1 million for a loss on extinguishment of debt related to the prepayment of higher-cost FHLB borrowings in the first nine months of 2021. There was no comparable expense in the first nine months of 2022. Salaries and employee benefits expense increased by $827,000, or 4.2 percent, to $20.4 million for the first nine months of 2022, from $19.6 million for the first nine months of 2021. The increase mainly related to payments made to the estate of a former officer of the Company who passed away in 2022, pursuant to the terms of his employment agreement, and normal compensation increases. The number of full-time equivalent employees for the first nine months of 2022 was 302 compared to 297 for the same period of 2021.

The income tax provision increased by $4.2 million, or 42.8 percent, to $13.9 million for the first nine months of 2022, from $9.7 million for the first nine months of 2021. The increase in the income tax provision was a result of higher taxable income for the first nine months of 2022, as compared with that same period for 2021. The consolidated effective tax rate for the first nine months of 2022 and 2021 was 29.3.

Asset Quality

The Bank had non-accrual loans totaling $8.5 million, or 0.30 percent of gross loans at September 30, 2022, as compared to $14.9 million, or 0.64 percent of gross loans at December 31, 2021 and $20.7 million, or 0.89 percent of gross loans at September 30, 2021. The allowance for loan losses was $33.2 million, or 1.18 percent of gross loans at September 30, 2022, $37.1 million or 1.58 percent of gross loans at December 31, 2021 and $38.2 million, or 1.64 percent of gross loans at September 30, 2021. The allowance for loan losses was 390.3 percent of non-accrual loans at September 30, 2022, 249.3 percent of non-accrual loans at December 31, 2021 and 184.1 percent of non-accrual loans at September 30, 2021.

Performing troubled debt restructured ("TDR") loans that were not included in non-accrual loans at September 30, 2022, were $10.5 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,
	September 30,2022			June 30,2022			September 30,2021			September 30, 2022 vs. June 30, 2022			September 30, 2022 vs. September 30, 2021
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	32,302		$	28,781		$	26,922		12.2	%		20.0	%
Mortgage-backed securities		173			47			159		268.1	%		8.8	%
Other investment securities		1,103			939			814		17.5	%		35.5	%
FHLB stock and other interest earning assets		822			694			249		18.4	%		230.1	%
Total interest and dividend income		34,400			30,461			28,144		12.9	%		22.2	%
Interest expense:
Deposits:
Demand		1,169			946			1,059		23.6	%		10.4	%
Savings and club		113			110			131		2.7	%		-13.7	%
Certificates of deposit		1,087			849			1,344		28.0	%		-19.1	%
		2,369			1,905			2,534		24.4	%		-6.5	%
Borrowings		1,080			815			997		32.5	%		8.3	%
Total interest expense		3,449			2,720			3,531		26.8	%		-2.3	%
Net interest income		30,951			27,741			24,613		11.6	%		25.8	%
Provision (credit) for loan losses		-			-			680					-100.0	%
Net interest income after provision for loan losses		30,951			27,741			23,933		11.6	%		29.3	%
Non-interest income:
Fees and service charges		1,251			1,213			713		3.1	%		75.5	%
Gain on sales of loans		18			43			83		-58.1	%		-78.3	%
Loss on sale of impaired loans					-			-
Gain on sale of other real estate owned					-			11					-100.0	%
Realized and unrealized gain (loss) on equity investments		(559	)		(2,302	)		(307	)	-75.7	%		82.1	%
BOLI income		646			686			765		-5.8	%		-15.6	%
Other		90			47			52		91.5	%		73.1	%
Total non-interest income		1,446			(313	)		1,317		562.0	%		9.8	%
Non-interest expense:
Salaries and employee benefits		6,944			6,715			6,511		3.4	%		6.7	%
Occupancy and equipment		2,608			2,673			2,983		-2.4	%		-12.6	%
Data processing and communications		1,520			1,469			1,511		3.5	%		0.6	%
Professional fees		614			489			543		25.6	%		13.1	%
Director fees		375			296			233		26.7	%		60.9	%
Regulatory assessment fees		264			244			303		8.2	%		-12.9	%
Advertising and promotions		286			254			200		12.6	%		43.0	%
Other real estate owned, net		1			4			(11	)	-75.0	%		-109.1	%
Loss from extinguishment of debt		-			-			337					-100.0	%
Other		841			912			918		-7.8	%		-8.4	%
Total non-interest expense		13,453			13,056			13,528		3.0	%		-0.6	%
Income before income tax provision		18,944			14,372			11,722		31.8	%		61.6	%
Income tax provision		5,552			4,209			3,400		31.9	%		63.3	%
Net Income		13,392			10,163			8,322		31.8	%		60.9	%
Preferred stock dividends		174			138			286		26.1	%		-39.1	%
Net Income available to common stockholders	$	13,218		$	10,025		$	8,036		31.9	%		64.5	%
Net Income per common share-basic and diluted
Basic	$	0.78		$	0.59		$	0.47		32.0	%		65.6	%
Diluted	$	0.76		$	0.58		$	0.47		32.2	%		61.2	%
Weighted average number of common shares outstanding
Basic		16,982			16,997			17,019		-0.1	%		-0.2	%
Diluted		17,356			17,404			17,222		-0.3	%		0.8	%

 

	Statements of Income - Nine Months Ended,
	September 30,2022			September 30, 2021			September 30, 2022 vs. September 30, 2021
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	87,404		$	80,673		8.3	%
Mortgage-backed securities		379			532		-28.8	%
Other investment securities		2,990			2,345		27.5	%
FHLB stock and other interest earning assets		1,812			673		169.2	%
Total interest and dividend income		92,585			84,223		9.9	%
Interest expense:
Deposits:
Demand		2,873			3,407		-15.7	%
Savings and club		331			376		-12.0	%
Certificates of deposit		2,916			4,975		-41.4	%
		6,120			8,758		-30.1	%
Borrowings		2,701			3,226		-16.3	%
Total interest expense		8,821			11,984		-26.4	%
Net interest income		83,764			72,239		16.0	%
Provision for loan losses		(2,575	)		4,840		-153.2	%
Net interest income after provision for loan losses		86,339			67,399		28.1	%
Non-interest income:
Fees and service charges		3,678			2,853		28.9	%
Gain on sales of loans		126			575		-78.1	%
(Loss) gain on sale of impaired loans		-			(64	)	-100.0	%
Gain on sales of other real estate owned		-			11		-100.0	%
Realized and unrealized gain on equity investments		(5,546	)		(4	)	-
BOLI income		2,087			2,195		-4.9	%
Gain on sale of premises		-			371		-100.0	%
Other		188			150		25.3	%
Total non-interest income		533			6,087		-91.2	%
Non-interest expense:
Salaries and employee benefits		20,395			19,568		4.2	%
Occupancy and equipment		7,976			8,604		-7.3	%
Data processing and communications		4,454			4,493		-0.9	%
Professional fees		1,597			1,446		10.4	%
Director fees		992			790		25.6	%
Regulatory assessments		812			993		-18.2	%
Advertising and promotions		681			392		73.7	%
Other real estate owned, net		6			12		-50.0	%
Loss from extinguishment of debt		-			1,071		-100.0	%
Other		2,555			2,899		-11.9	%
Total non-interest expense		39,468			40,268		-2.0	%
Income before income tax provision		47,404			33,218		42.7	%
Income tax provision		13,897			9,729		42.8	%
Net Income		33,507			23,489		42.6	%
Preferred stock dividends		624			852		-26.8	%
Net Income available to common stockholders	$	32,883		$	22,637		45.3	%
Net Income per common share-basic and diluted
Basic	$	1.94		$	1.33		45.6	%
Diluted	$	1.89		$	1.31		44.5	%
Weighted average number of common shares outstanding
Basic		16,986			17,085		-0.6	%
Diluted		17,369			17,242		0.7	%

Statements of Financial Condition	September 30, 2022			June 30, 2022			September 30, 2021			September 30, 2022 vs. June 30, 2022		September 30, 2022 vs. September 30, 2021
ASSETS	(In Thousands, Unaudited)
Cash and amounts due from depository institutions	$	11,192		$	10,182		$	8,569		9.9	%	30.6	%
Interest-earning deposits		209,832			195,990			434,369		7.1	%	-51.7	%
Total cash and cash equivalents		221,024			206,172			442,938		7.2	%	-50.1	%
Interest-earning time deposits		735			735			735		-		-
Debt securities available for sale		92,751			86,749			82,603		6.9	%	12.3	%
Equity investments		18,408			18,968			23,534		-3.0	%	-21.8	%
Loans held for sale		-			5			913		-100.0	%	-100.0	%
Loans receivable, net of allowance for loan losses of $33,195, $34,113 and $38,156, respectively		2,787,015			2,620,630			2,289,854		6.35	%	21.71	%
Federal Home Loan Bank of New York stock, at cost		12,388			6,781			8,193		82.7	%	51.2	%
Premises and equipment, net		10,723			11,075			12,998		-3.2	%	-17.5	%
Accrued interest receivable		11,093			10,315			10,388		7.5	%	6.8	%
Other real estate owned		75			75			-		0.0	%
Deferred income taxes		15,863			13,583			13,515		16.8	%	17.4	%
Goodwill and other intangibles		5,394			5,406			5,445		-0.2	%	-0.9	%
Operating lease right-of-use asset		11,785			12,194			13,245		-3.4	%	-11.0	%
Bank-owned life insurance ("BOLI")		71,072			70,426			71,728		0.9	%	-0.9	%
Other assets		7,286			9,657			7,698		-24.6	%	-5.4	%
Total Assets	$	3,265,612		$	3,072,771		$	2,983,787		6.3	%	9.4	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits	$	610,425		$	595,167		$	544,619		2.6	%	12.1	%
Interest bearing deposits		2,102,521			2,059,863			1,996,786		2.1	%	5.3	%
Total deposits		2,712,946			2,655,030			2,541,405		2.2	%	6.7	%
FHLB advances		212,123			86,986			118,573		143.9	%	78.9	%
Subordinated debentures		37,450			37,391			37,217		0.2	%	0.6	%
Operating lease liability		12,102			12,496			13,533		-3.2	%	-10.6	%
Other liabilities		8,309			9,231			9,978		-10.0	%	-16.7	%
Total Liabilities		2,982,930			2,801,134			2,720,706		6.5	%	9.6	%
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000 shares authorized		-			-			-
Additional paid-in capital preferred stock		21,003			16,563			25,723		26.8	%	-18.3	%
Common stock: no par value, 40,000 shares authorized		-			-			-
Additional paid-in capital common stock		195,057			194,567			193,613		0.3	%	0.7	%
Retained earnings		105,894			95,393			73,388		11.0	%	44.3	%
Accumulated other comprehensive (loss) income		(6,149	)		(2,997	)		(214	)	105.2	%	2773.4	%
Treasury stock, at cost		(33,123	)		(31,889	)		(29,429	)	3.9	%	12.6	%
Total Stockholders' Equity		282,682			271,637			263,081		4.1	%	7.5	%
Total Liabilities and Stockholders' Equity	$	3,265,612		$	3,072,771		$	2,983,787		6.3	%	9.4	%
Outstanding common shares		16,974			16,960			17,036

	Three Months Ended September 30,
		2022							2021
	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)	$	2,699,093	$	32,302	4.79	%		$	2,340,690	$	26,922	4.60	%
Investment Securities		112,172		1276	4.55	%			105,595		973	3.69	%
FHLB stock and other interest-earning assets		153,705		822	2.14	%			402,617		249	0.25	%
Total Interest-earning assets		2,964,970		34,400	4.64	%			2,848,903		28,144	3.95	%
Non-interest-earning assets		106,750							105,399
Total assets	$	3,071,720						$	2,954,302
Interest-bearing liabilities:
Interest-bearing demand accounts	$	774,870	$	707	0.36	%		$	638,812	$	648	0.41	%
Money market accounts		353,821		462	0.52	%			344,142		411	0.48	%
Savings accounts		343,515		113	0.13	%			321,783		131	0.16	%
Certificates of Deposit		545,293		1,087	0.80	%			674,558		1,344	0.80	%
Total interest-bearing deposits		2,017,500		2,369	0.47	%			1,979,294		2,534	0.51	%
Borrowed funds		138,314		1,080	3.12	%			163,814		997	2.43	%
Total interest-bearing liabilities		2,155,813		3,449	0.64	%			2,143,108		3,531	0.66	%
Non-interest-bearing liabilities		640,102							551,938
Total liabilities		2,795,916							2,695,046
Stockholders' equity		275,804							259,255
Total liabilities and stockholders' equity	$	3,071,720						$	2,954,301
Net interest income			$	30,951						$	24,613
Net interest rate spread(1)					4.00	%						3.29	%
Net interest margin(2)					4.18	%						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 loan losses.
(5)  Includes non-accrual loans which are immaterial to the yield

	Nine Months Ended September 30,
		2022							2021
	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)	$	2,521,375	$	87,404	4.62	%		$	2,336,950		$	80,673	4.60	%
Investment Securities		109,422		3,369	4.11	%			108,492			2,877	3.54	%
FHLB stock and other interest-earning assets		314,024		1,812	0.77	%			330,500			673	0.27	%
Total Interest-earning assets		2,944,821		92,585	4.19	%			2,775,942			84,223	4.05	%
Non-interest-earning assets		105,368							107,319
Total assets	$	3,050,189						$	2,883,261
Interest-bearing liabilities:
Interest-bearing demand accounts	$	759,307	$	1,674	0.29	%		$	627,193		$	2,108	0.47	%
Money market accounts		351,846		1,199	0.45	%			332,489			1,299	0.54	%
Savings accounts		342,199		331	0.13	%			313,315			376	0.16	%
Certificates of Deposit		573,951		2,915	0.68	%			677,868			4,975	1.07	%
Total interest-bearing deposits		2,027,303		6,120	0.40	%			1,950,865			8,758	0.64	%
Borrowed funds		119,059		2,701	3.02	%			179,913			3,226	2.39	%
Total interest-bearing liabilities		2,146,362		8,821	0.71	%			2,130,778			11,984	0.75	%
Non-interest-bearing liabilities		631,097							497,358
Total liabilities		2,777,459							2,628,136
Stockholders' equity		272,730							255,125
Total liabilities and stockholders' equity	$	3,050,189						$	2,883,261
Net interest income			$	83,764							$	72,239
Net interest rate spread(1)					3.64	%							3.30	%
Net interest margin(2)					3.79	%							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

	Financial Condition data by quarter
	Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
	(In thousands, except book values)
Total assets	$	3,265,612		$	3,072,771		$	3,040,310		$	2,967,528		$	2,983,787
Cash and cash equivalents		221,024			206,172			396,653			411,629			442,938
Securities		111,159			105,717			107,576			110,373			106,137
Loans receivable, net		2,787,015			2,620,630			2,395,930			2,304,942			2,289,854
Deposits		2,712,946			2,655,030			2,631,175			2,561,402			2,541,405
Borrowings		249,573			124,377			109,181			108,986			155,790
Stockholders' equity		282,682			271,637			276,159			274,024			263,081
Book value per common share1	$	15.42		$	15.04		$	14.72		$	14.47		$	13.93
Tangible book value per common share2	$	15.11		$	14.73		$	14.41		$	14.16		$	13.62
	Operating data by quarter
	Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
	(In thousands, except for per share amounts)
Net interest income	$	30,951		$	27,741		$	25,072		$	25,154		$	24,613
Provision (credit ) for loan losses		-			-			(2,575	)		(985	)		680
Non-interest income		1,446			-313			-600			2,608			1,317
Non-interest expense		13,453			13,056			12,959			13,707			13,528
Income tax expense		5,552			4,209			4,136			4,289			3,400
Net income	$	13,392		$	10,163		$	9,952		$	10,751		$	8,322
Net income per diluted share	$	0.76		$	0.58		$	0.56		$	0.61		$	0.47
Common Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
	Financial Ratios(3)
	Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
Return on average assets		1.74%			1.32%			1.33%			1.42%			1.13%
Return on average stockholder's equity		19.42%			15.00%			14.67%			16.25%			12.84%
Net interest margin		4.18%			3.74%			3.46%			3.44%			3.46%
Stockholder's equity to total assets		8.66%			8.84%			9.08%			9.23%			8.82%
Efficiency Ratio4		41.53%			47.60%			52.95%			49.37%			52.17%
	Asset Quality Ratios
	Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
	(In thousands, except for ratio %)
Non-Accrual Loans	$	8,505		$	9,201		$	9,232		$	14,889		$	20,725
Non-Accrual Loans as a % of Total Loans		0.30%			0.35%			0.38%			0.64%			0.89%
ALLL as % of Non-Accrual Loans		390.3%			370.7%			368.1%			249.3%			184.1%
Impaired Loans		40,524			42,411			40,955			49,382			58,863
Classified Loans		30,180			31,426			29,850			39,157			48,547
(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 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
	(In thousands)
Residential one-to-four family	$	242,238		$	235,883		$	233,251		$	224,534		$	224,330
Commercial and multi-family		2,164,320			2,030,597			1,804,815			1,720,174			1,739,976
Construction		153,103			155,070			141,082			153,904			149,076
Commercial business		205,661			181,868			198,216			191,139			161,416
Home equity		56,064			51,808			52,279			50,469			52,109
Consumer		2,545			2,656			2,726			3,717			2,730
	$	2,823,931		$	2,657,882		$	2,432,369		$	2,343,937		$	2,329,637
Less:
Deferred loan fees, net		(3,721	)		(3,139	)		(2,459	)		(1,876	)		(1,627	)
Allowance for loan loss		(33,195	)		(34,113	)		(33,980	)		(37,119	)		(38,156	)
Total loans, net	$	2,787,015		$	2,620,630		$	2,395,930		$	2,304,942		$	2,289,854
	Non-Accruing Loans in Portfolio by quarter
	Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
	(In thousands)
Residential one-to-four family	$	263		$	267		$	278		$	282		$	455
Commercial and multi-family		757			757			757			8,601			13,322
Construction		3,180			3,043			2,954			2,847			2,787
Commercial business		4,305			5,104			5,243			3,132			4,128
Home equity		-			30			-			27			33
Total:	$	8,505		$	9,201		$	9,232		$	14,889		$	20,725

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
	Tangible Book Value per Share
	Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
	(In thousands, except per share amounts)
Total Stockholders' Equity	$	282,682		$	271,637		$	276,159		$	274,024		$	263,081
Less: goodwill		5,252			5,252			5,252			5,252			5,252
Less: preferred stock		21,003			16,563			26,213			28,923			25,723
Total tangible common stockholders' equity		256,427			249,822			244,694			239,849			232,106
Shares common shares outstanding		16,974			16,960			16,984			16,940			17,036
Book value per common share	$	15.42		$	15.04		$	14.72		$	14.47		$	13.93
Tangible book value per common share	$	15.11		$	14.73		$	14.41		$	14.16		$	13.62
	Efficiency Ratios
	Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
	(In thousands, except for ratio %)
Net interest income	$	30,951		$	27,741		$	25,072		$	25,154		$	24,613
Non-interest income		1,446			-313			-600			2,608			1,317
Total income		32,397			27,428			24,472			27,762			25,930
Non-interest expense		13,453			13,056			12,959			13,707			13,528
Efficiency Ratio		41.53%			47.60%			52.95%			49.37%			52.17%
	Distribution of Deposits by quarter
	Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
	(In thousands)
Demand:
Non-Interest Bearing	$	610,425		$	595,167		$	621,403		$	588,207		$	544,619
Interest Bearing		726,012			810,535			724,020			668,262			644,453
Money Market		370,353			360,356			354,302			337,126			351,508
Sub-total:	$	1,706,790		$	1,766,058		$	1,699,725		$	1,593,595		$	1,540,580
Savings and Club		338,864			347,279			341,529			329,724			326,807
Certificates of Deposit		667,291			541,693			589,921			638,083			674,018
Total Deposits:	$	2,712,945		$	2,655,030		$	2,631,175		$	2,561,402		$	2,541,405

CONTACT:	THOMAS COUGHLIN,
	PRESIDENT & CEO
	RYAN BLAKE, COO
	1 (800) 680-6872