BCB Bancorp, Inc. Reports Record Net Income of $45.6 Million in 2022 and Earns $12.1 Million in Fourth Quarter 2022; Quarterly Cash Dividend is $0.16 Per Share

BAYONNE, N.J., Jan. 26, 2023 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the "Company"), (NASDAQ:BCBP), the holding company for BCB Community Bank (the "Bank"), today reported that its net income for the year ended December 31, 2022 increased 33.1 percent to $45.6 million, the highest annual earnings in the Company's history, compared with $34.2 million for 2021. Earnings per diluted share for 2022 were $2.58 as compared to $1.92 for 2021. For the fourth quarter of 2022, net income was $12.1 million, a 9.9 percent decrease compared to $13.4 million in the third quarter of 2022, and a 12.3 percent increase compared to $10.8 million in the fourth quarter of 2021. Earnings per diluted share for the fourth quarter of 2022 were $0.69, compared to $0.76 in the preceding quarter and $0.61 in the fourth quarter 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 February 17, 2023, to common shareholders of record on February 3, 2023.

"We posted another strong quarter and Company-record profits for the year 2022. Our results are indicative of the successful execution of our business strategy and the efforts of our team to help our customers meet the needs of the communities we serve," stated Thomas Coughlin, President and Chief Executive Officer. "Despite a challenging high rate environment, our operating results for the fourth quarter of 2022 reflect continued strong loan growth, increased interest income, and robust profitability."

"Looking ahead, we remain committed to protecting our profitability as we continue to grow in a disciplined and prudent manner. We plan to onboard new relationships and talent that have become available due to market disruptions caused by recent mergers. We expect to benefit from the successful execution of a number of internal projects that will significantly enhance our digital footprint and automate back-office operations. We firmly believe that these actions will further enhance our franchise value over time and we will come out stronger and more profitable on the other side of the current economic cycle."

"The Company will adopt the Current Expected Credit Loss ("CECL") methodology during the first quarter of 2023. CECL replaced the incurred loss methodology and therefore, starting in 2023, the allowance and provision for credit losses will be based upon estimated expected credit losses rather than incurred losses. Our asset quality remains strong and continues to show improvement. Our non-accrual loans to total loans ratio decreased to 0.17 percent at December 31, 2022, from 0.30 percent at September 30, 2022, and 0.64 percent a year ago. Due to the solid performance of our asset quality metrics, we recorded a credit to the loan loss provision of $500,000 during the fourth quarter of 2022. This is compared to a credit to the loan loss provision of $985,000 in the fourth quarter of 2021," said Mr. Coughlin.

Executive Summary

• Net interest margin was 3.76 percent for the fourth quarter of 2022, compared to 4.18 percent for the third quarter of 2022, and 3.44 percent for the fourth quarter of 2021.
  • Total yield on interest-earning assets increased 21 basis points to 4.85 percent for the fourth quarter of 2022, compared to 4.64 percent for the third quarter of 2022, and increased 97 basis points from 3.88 percent for the fourth quarter of 2021.
  • Total cost of interest-bearing liabilities increased 82 basis points to 1.46 percent for the fourth quarter of 2022, compared to 0.64 percent for the third quarter of 2022, and increased 87 basis points from 0.59 percent for the fourth quarter of 2021.
• The efficiency ratio for the fourth quarter was 51.3 percent compared to 41.5 percent in the prior quarter, and 49.4 percent in the fourth quarter of 2021.   The efficiency ratio for the fourth quarter of 2022 was impacted by the non-recurring consulting fee expense. During the fourth quarter of 2022, the Company executed a number of operational initiatives aimed at enhancing our digital presence and meaningfully improving our back-office capabilities. The effort involved renegotiating contracts with existing vendors and entering into contracts with new service providers. These initiatives will facilitate better customer service while also driving functional efficiencies. Additionally, the terms of the renegotiated contracts will generate expense savings beginning in January of 2023. A percentage of those future savings were paid out as a one-time fee of $1.6 million to the consulting organization that assisted with the overall project.
• The return on average assets ratio for the fourth quarter was 1.46 percent compared to 1.74 percent in the prior quarter, and 1.42 percent in the fourth quarter of 2021.
• The return on average equity ratio for the fourth quarter was 16.99 percent compared to 19.42 percent in the prior quarter, and 16.25 percent in the fourth quarter of 2021.
• The Company had a credit for loan losses of $500,000 for the fourth quarter compared to no provision for loan losses for the prior quarter and a credit for loan losses of $985,000 for the fourth quarter of 2021.
• Allowance for loan losses as a percentage of non-accrual loans was 633.6 percent at December 31, 2022, compared to 390.3 percent for the prior quarter and 249.3 percent at December 31, 2021, as total non-accrual loans decreased to $5.1 million at December 31, 2022 from $8.5 million for the prior quarter and $14.9 million at December 31, 2021.
• Total loans receivable, net of allowance for loan losses, increased 32.1% to $3.045 billion at December 31, 2022, from $2.305 billion at December 31, 2021.
• Total deposits were $2.812 billion at December 31, 2022, up from $2.561 billion at December 31, 2021.

Balance Sheet Review

Total assets increased by $578.7 million, or 19.5 percent, to $3.546 billion at December 31, 2022, from $2.968 billion at December 31, 2021. The increase in total assets was mainly related to increases in total loans.

Total cash and cash equivalents decreased by $182.3 million, or 44.3 percent, to $229.4 million at December 31, 2022 from $411.6 million at December 31, 2021. This decrease was primarily due to the redeployment of cash and cash equivalents into loans.

Loans receivable, net, increased by $740.4 million, or 32.1 percent, to $3.045 billion at December 31, 2022 from $2.305 billion at December 31, 2021. Total loan increases for 2022 included increases of $625.1 million in commercial real estate and multi-family loans, $90.9 million in commercial business loans, $25.6 million in residential one-to-four family loans and $6.4 million in home equity loans, partly offset by decreases of $9.0 million in construction loans and $477 thousand in consumer loans. The allowance for loan losses decreased $4.7 million to $32.4 million, or 633.6 percent of non-accruing loans and 1.05 percent of gross loans, at December 31, 2022 as compared to an allowance for loan losses of $37.1 million, or 249.3 percent of non-accruing loans and 1.58 percent of gross loans, at December 31, 2021.

Total investment securities decreased by $972,000, or 0.88 percent, to $109.4 million at December 31, 2022 from $110.4 million at December 31, 2021, representing repayments, calls and maturities, and unrealized losses, partly offset by purchases of $27.5 million, and sales of $1.2 million.

Deposit liabilities increased by $250.2 million, or 9.8 percent, to $2.812 billion at December 31, 2022 from $2.561 billion at December 31, 2021. Total increases for 2022 included $25.7 million in non-interest-bearing deposit accounts, $89.4 million in NOW deposit accounts, and $166.7 million in certificates of deposit, including listing service and brokered deposit accounts. The increase in deposits was partly offset by a decrease of $31.6 million in money market accounts.

Debt obligations increased by $310.8 million to $419.8 million at December 31, 2022 from $109.0 million at December 31, 2021. The weighted average interest rate of FHLB advances was 4.07 percent at December 31, 2022 and 1.39 percent at December 31, 2021. The weighted average maturity of FHLB advances as of December 31,2022 was 1.10 years. The fixed interest rate of our subordinated debt balances was 5.625 percent at December 31, 2022 and December 31, 2021.

Stockholders' equity increased by $17.2 million, or 6.3 percent, to $291.3 million at December 31, 2022 from $274.0 million at December 31, 2021. The increase was primarily attributable to the increase in retained earnings of $33.9 million, or 41.8 percent, to $115.1 million at December 31, 2022 from $81.2 million at December 31, 2021, related to net income less dividends paid for the twelve months ended December 31, 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 $7.6 million, and an increase in treasury stock of $3.4 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, caused by the recent increase in interest rates generally.

Fourth Quarter 2022 Income Statement Review

Net income was $12.1 million for the fourth quarter ended December 31, 2022 and $10.8 million for the fourth quarter ended December 31, 2021. The increase was driven by an increase in total interest income and a decrease in income tax provision, which were partly offset by a decrease in non-interest income, a lower credit for loan loss provision, and an increase in non-interest expenses for the fourth quarter of 2022 as compared with the fourth quarter of 2021.  

Net interest income increased by $5.0 million, or 20.0 percent, to $30.2 million for the fourth quarter of 2022 from $25.2 million for the fourth quarter of 2021. The increase in net interest income resulted from higher interest income which was partially offset by higher interest expense.

Interest income increased by $10.5 million, or 37.1 percent, to $38.9 million for the fourth quarter of 2022 from $28.4 million for the fourth quarter of 2021. The average balance of interest-earning assets increased $282.2 million, or 9.6 percent, to $3.207 billion for the fourth quarter of 2022 from $2.925 billion for the fourth quarter of 2021, while the average yield increased 97 basis points to 4.85 percent for the fourth quarter of 2022 from 3.88 percent for the fourth quarter of 2021. Interest income on loans for the fourth quarter of 2022 also included $647,000 of amortization of purchase credit fair value adjustments related to a prior acquisition, which added approximately eight basis points to the average yield on interest earning assets.

Interest expense increased by $5.5 million to $8.7 million for the fourth quarter of 2022 from $3.2 million for the fourth quarter of 2021. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 87 basis points to 1.46 percent for the fourth quarter of 2022 from 0.59 percent for the fourth quarter of 2021, while the average balance of interest-bearing liabilities increased by $225.4 million to $2.382 billion for the fourth quarter of 2022 from $2.157 billion for the fourth quarter of 2021. The increase in the average cost of funds resulted primarily from the significantly higher interest rate environment during 2022 compared to 2021.

The net interest margin was 3.76 percent for the fourth quarter of 2022, compared to 3.44 percent for the fourth quarter of 2021. The increase in the net interest margin compared to the fourth quarter of 2021 was the result of the improvement in the yield on interest-earning assets partially offset by the increase in the cost of interest-bearing liabilities. In a rapidly rising 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 fourth quarter of 2022, the Company experienced $322,000 in net charge offs compared to $52,000 in the fourth quarter of 2021. The Bank had non-accrual loans totaling $5.1 million, or 0.17 percent, of gross loans at December 31, 2022 as compared to $14.9 million, or 0.64 percent of gross loans at December 31, 2021. The allowance for loan losses was $32.4 million, or 1.05 percent of gross loans at December 31, 2022, and $37.1 million, or 1.58 percent of gross loans at December 31, 2021. The credit for loan losses decreased by $485,000 to $500,000 for the fourth quarter of 2022 from $985,000 for the fourth quarter of 2021. Management believes that the allowance for loan losses was adequate at December 31, 2022 and December 31, 2021.

Noninterest income decreased by $1.5 million, or 59.3 percent, to $1.1 million for the fourth quarter of 2022 from $2.6 million for fourth quarter of 2021. The decrease in total noninterest income was mainly related to a decrease in the realized and unrealized gains and losses on equity securities from a gain of $151,000 to a loss of $723,000 and a decrease in other non-interest income of $429,000. The realized and unrealized gains or losses on equity securities are based on market conditions. The other income for the fourth quarter of 2021 was higher primarily due to the reversal of certain liabilities previously recorded for loans acquired in the acquisition of IAB Bancorp, Inc. that paid off during the quarter.

Noninterest expense increased by $2.3 million, or 17.0 percent, to $16.0 million for the fourth quarter of 2022 from $13.7 million for the fourth quarter of 2021. The increase in operating expenses for the fourth quarter of 2022 was primarily driven by the non-recurring consulting fee expense of $1.6 million discussed above for which there was no comparable expense in the fourth quarter of 2021. Other factors that contributed to the increase in operating expenses for the fourth quarter of 2022 included higher salaries and employee benefits and higher other expenses compared to the fourth quarter of 2021. The increase in salaries related to normal compensation increases, higher commission expenses from strong loan production, and hiring of additional staff. The number of full-time equivalent employees for the fourth quarter of 2022 was 301, as compared to 292 for the same period in 2021. Occupancy and equipment expense decreased by $105,000 to $2.7 million for the fourth quarter of 2022 from $2.8 million for the fourth quarter of 2021, mainly related to costs associated with branch closures in 2021.

The income tax provision decreased by $655,000 or 15.3 percent, to $3.6 million for the fourth quarter of 2022 from $4.3 million for the fourth quarter of 2021. The income tax provision for the fourth quarter of 2022 benefited from the reversal of a portion of tax accrual that was no longer required to cover the tax liability. The consolidated effective tax rate was 23.1% for the fourth quarter of 2022 compared to 28.5 percent for the fourth quarter of 2021.

Year-to-Date Income Statement Review

Net income increased by $11.3 million, or 33.1 percent, to $45.6 million for the year ended December 31, 2022 from $34.2 million for the year ended December 31, 2021. The increase in net income was driven by an increase in total interest income and credit for loan loss provision, which were partly offset by a decrease in non-interest income and increases in interest expense, non-interest expenses, and a higher income tax provision for 2022 as compared to 2021.  

Net interest income increased by $16.6 million, or 17.0 percent, to $113.9 million for the year of 2022 from $97.4 million for the year of 2021. The increase in net interest income resulted from a $18.9 million increase in interest income, partly offset by an increase of $2.3 million in interest expense.

Interest income increased by $18.9 million, or 16.8 percent, to $131.4 million for 2022, from $112.6 million for 2021. The average balance of interest-earning assets increased $197.4 million, or 7.0 percent, to $3.011 billion for 2022, from $2.814 for 2021, while the average yield increased 37 basis points to 4.37 percent for 2022, from 4.00 percent for 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 2022, as compared to 2021.  

The increase in interest income mainly related to an increase in the average balance of loans receivable of $298.9 million to $2.627 billion for 2022, from $2.328 billion for 2021. The increase in the average balance on loans receivable was a result of the continued strength of the Company's loan pipeline. Interest income on loans for 2022 also included $1.4 million of amortization of purchase credit fair value adjustments related to a prior acquisition, which added approximately five basis points to the average yield on interest earning assets.

Interest expense increased by $2.3 million, or 15.3 percent, to $17.5 million for 2022, from $15.2 million for 2021. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 8 basis points to 0.79 percent for 2022, from 0.71 percent for 2021, and an increase in the average balance of interest-bearing liabilities of $68.5 million, or 3.2 percent, to $2.206 billion 2022, from $2.137 billion for 2021. The increase in the average cost of funds primarily resulted from the high interest rate environment in 2022.

Net interest margin was 3.78 percent for 2022, compared to 3.46 percent for 2021. The increase in the net interest margin compared to the prior period was the result of an increase in the average volume of loans receivable as well as an increase in the yield on loans partially offset by the increase in the Company's cost of funds.

During the year ended December 31, 2022, the Company experienced $1.7 million in net charge offs compared to $375,000 in net charge offs for the year ended December 31, 2021. The Bank had non-accrual loans totaling $5.1 million, or 0.17 percent, of gross loans at December 31, 2022 as compared to $14.9 million, or 0.64 percent of gross loans at December 31, 2021. The allowance for loan losses was $32.4 million, or 1.05 percent of gross loans at December 31, 2022, and $37.1 million, or 1.58 percent of gross loans at December 31, 2021. The credit for loan losses was $3.1 million for 2022 compared to loan loss provision expense of $3.9 million for 2021. The credit for provision for 2022 reflected the improving asset quality and more favorable economic metrics compared to the COVID-19 environment in 2021. Management believes that the allowance for loan losses was adequate at December 31, 2022 and December 31, 2021.

Noninterest income decreased by $7.1 million, or 81.7 percent, to $1.6 million for 2022 from $8.7 million for 2021. The decrease in total noninterest income was mainly related to a decrease of $6.4 million in the realized and unrealized gains and losses on equity securities (from a gain of $147,000 to a loss of $6.3 million), as well as a decrease of $538,000 in gain on sale of loans, $371,000 in gain on sale of premises, and $391,000 in other income. The realized and unrealized gains or losses on equity securities are based on market conditions.

Noninterest expense increased by $1.5 million, or 2.8 percent, to $55.5 million for the year ended December 31, 2022 from $54.0 million for the year ended December 31, 2021. The increase in operating expenses for 2022 was driven higher by the non-recurring consulting fee expense of $1.6 million for which there was no comparable expense in 2021. Other factors that contributed to the increase in operating expenses for 2022 included higher salaries and employee benefits and higher advertising and promotion expenses compared to 2021. The increase in salaries related to normal compensation increases, higher commission expenses from strong loan production, and hiring of additional staff. The number of full-time equivalent employees for the year ended December 31, 2022 was 301, as compared with 292 for the same period in 2021. Occupancy and equipment expense decreased by $733,000 to $10.7 million for the year ended December 31, 2022 from $11.4 million for the year ended December 31, 2021, mainly related to costs associated with branch closures in 2021.

The income tax provision increased by $3.5 million or 25.1 percent, to $17.5 million for 2022 from $14.0 million in 2021. The increase in the income tax provision was a result of the higher taxable income for the year ended December 31, 2022 compared to the year ended December 31, 2021. The income tax provision for 2022 also included the benefit from the reversal of tax accrual that occurred during the fourth quarter of 2022. The consolidated effective tax rate was 27.8% for 2022 compared to 29.0 percent for 2021.

Asset Quality

During the fourth quarter of 2022, the Company recognized $322,000 in net charge offs, compared to $52,000 for the fourth quarter of 2021.

The credit for loan losses decreased by $485,000 to $500,000 for the fourth quarter of 2022 from $985,000 for the fourth quarter of 2021. The Bank had non-accrual loans totaling $5.1 million, or 0.17 percent, of gross loans at December 31, 2022, as compared to $14.9 million, or 0.64 percent, of gross loans at December 31, 2021.

Performing troubled debt restructured ("TDR") loans that were not included in nonaccrual loans at December 31, 2022, were $10.6 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.

The allowance for loan losses was $32.4 million, or 1.05 percent of gross loans at December 31, 2022, and $37.1 million, or 1.58 percent of gross loans at December 31, 2021. The allowance for loan losses was 633.6 percent of non-accrual loans at December 31, 2022, and 249.3 percent of non-accrual loans at December 31, 2021.

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,
	December 31, 2022			September 30, 2022			December 31, 2021			Dec 31, 2022 vs. Sept 30, 2022			Dec 31, 2022 vs. Dec 31, 2021
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	36,173		$	32,302		$	26,987		12.0	%		34.0	%
Mortgage-backed securities		185			173			148		6.9	%		25.0	%
Other investment securities		1,177			1,103			929		6.7	%		26.7	%
FHLB stock and other interest earning assets		1,321			822			286		60.7	%		361.9	%
Total interest and dividend income		38,856			34,400			28,350		13.0	%		37.1	%
Interest expense:
Deposits:
Demand		2,410			1,169			928		106.2	%		159.7	%
Savings and club		118			113			129		4.4	%		-8.5	%
Certificates of deposit		3,973			1,087			1,185		265.5	%		235.3	%
		6,501			2,369			2,242		174.4	%		190.0	%
Borrowings		2,174			1,080			954		101.3	%		127.9	%
Total interest expense		8,675			3,449			3,196		151.5	%		171.4	%
Net interest income		30,181			30,951			25,154		-2.5	%		20.0	%
(Credit) provision for loan losses		(500)			-			(985)					-49.2	%
Net interest income after (credit) provision for loan losses		30,681			30,951			26,139		-0.9	%		17.4	%
Non-interest income:
Fees and service charges		1,138			1,251			1,119		-9.0	%		1.7	%
Gain on sales of loans		3			18			92		-83.3	%		-96.7	%
Realized and unrealized (loss) gain on equity investments		(723)			(559)			151		29.3	%		-578.8	%
BOLI income		584			646			757		-9.6	%		-22.9	%
Other		60			90			489		-33.3	%		-87.7	%
Total non-interest income		1,062			1,446			2,608		0.0	%		-59.3	%
Non-interest expense:
Salaries and employee benefits		7,626			6,944			6,842		9.8	%		11.5	%
Occupancy and equipment		2,651			2,608			2,756		1.6	%		-3.8	%
Data processing and communications		1,579			1,520			1,531		3.9	%		3.1	%
Professional fees		2,169			614			473		253.3	%		358.6	%
Director fees		261			375			253		-30.4	%		3.2	%
Regulatory assessment fees		431			264			317		63.3	%		36.0	%
Advertising and promotions		260			286			162		-9.1	%		60.5	%
Other real estate owned, net		4			1			23		300.0	%		-82.6	%
Loss from extinguishment of debt		-			-			526					-100.0	%
Other		1,056			841			824		25.6	%		28.2	%
Total non-interest expense		16,037			13,453			13,707		19.2	%		17.0	%
Income before income tax provision		15,706			18,944			15,040		-17.1	%		4.4	%
Income tax provision		3,634			5,552			4,289		-34.5	%		-15.3	%
Net Income		12,072			13,392			10,751		-9.9	%		12.3	%
Preferred stock dividends		172			174			308		-0.9	%		-44.0	%
Net Income available to common stockholders	$	11,900		$	13,218		$	10,443		-10.0	%		13.9	%
Net Income per common share-basic and diluted
Basic	$	0.70		$	0.78		$	0.61		-9.8	%		15.3	%
Diluted	$	0.69		$	0.76		$	0.61		-9.4	%		12.8	%
Weighted average number of common shares outstanding
Basic		16,916			16,982			16,988		-0.4	%		-0.4	%
Diluted		17,289			17,356			17,230		-0.4	%		0.3	%

	Statements of Income - Twelve Months Ended,
	December 31, 2022			December 31, 2021			Dec 31, 2022 vs. Dec 31, 2021
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	123,577		$	107,660		14.8	%
Mortgage-backed securities		564			680		-17.1	%
Other investment securities		4,167			3,274		27.3	%
FHLB stock and other interest earning assets		3,133			959		226.7	%
Total interest and dividend income		131,441			112,573		16.8	%
Interest expense:
Deposits:
Demand		5,283			4,335		21.9	%
Savings and club		449			505		-11.1	%
Certificates of deposit		6,889			6,160		11.8	%
		12,621			11,000		14.7	%
Borrowings		4,875			4,180		16.6	%
Total interest expense		17,496			15,180		15.3	%
Net interest income		113,945			97,393		17.0	%
(Credit) provision for loan losses		(3,075)			3,855		-179.8	%
Net interest income after (credit) provision for loan losses		117,020			93,538		25.1	%
Non-interest income:
Fees and service charges		4,816			3,972		21.2	%
Gain on sales of loans		129			667		-80.7	%
(Loss) gain on sale of impaired loans		-			(64)		-100.0	%
Gain on sales of other real estate owned		-			11		-100.0	%
Realized and unrealized (loss) gain on equity investments		(6,269)			147		-4364.6	%
BOLI income		2,671			2,952		-9.5	%
Gain on sale of premises		-			371		-100.0	%
Other		248			639		-61.2	%
Total non-interest income		1,595			8,695		-81.7	%
Non-interest expense:
Salaries and employee benefits		28,021			26,410		6.1	%
Occupancy and equipment		10,627			11,360		-6.5	%
Data processing and communications		6,033			6,024		0.1	%
Professional fees		3,766			1,919		96.2	%
Director fees		1,253			1,043		20.1	%
Regulatory assessments		1,243			1,310		-5.1	%
Advertising and promotions		941			554		69.9	%
Other real estate owned, net		10			35		-71.4	%
Loss from extinguishment of debt		-			1,597		-100.0	%
Other		3,611			3,723		-3.0	%
Total non-interest expense		55,505			53,975		2.8	%
Income before income tax provision		63,110			48,258		30.8	%
Income tax provision		17,531			14,018		25.1	%
Net Income		45,579			34,240		33.1	%
Preferred stock dividends		796			1,160		-31.3	%
Net Income available to common stockholders	$	44,783		$	33,080		35.4	%
Net Income per common share-basic and diluted
Basic	$	2.64		$	1.94		36.0	%
Diluted	$	2.58		$	1.92		34.4	%
Weighted average number of common shares outstanding
Basic		16,969			17,063		-0.6	%
Diluted		17,349			17,239		0.6	%

 

Statements of Financial Condition	December 31, 2022			September 30, 2022			December 31, 2021			December 31, 2022 vs. September 30, 2022		December 31, 2022 vs. December 31, 2021
ASSETS	(In Thousands, Unaudited)
Cash and amounts due from depository institutions	$	11,520		$	11,192		$	9,606		2.9	%	19.9	%
Interest-earning deposits		217,839			209,832			402,023		3.8	%	-45.8	%
Total cash and cash equivalents		229,359			221,024			411,629		3.8	%	-44.3	%
Interest-earning time deposits		735			735			735		-		-
Debt securities available for sale		91,715			92,751			85,186		-1.1	%	7.7	%
Equity investments		17,686			18,408			25,187		-3.9	%	-29.8	%
Loans held for sale		658			-			952		-		-30.9	%
Loans receivable, net of allowance for loan losses
of $32,373, $33,195 and $37,119, respectively		3,045,331			2,787,015			2,304,942		9.27	%	32.12	%
Federal Home Loan Bank of New York stock, at cost		20,113			12,388			6,084		62.4	%	230.6	%
Premises and equipment, net		10,508			10,723			12,237		-2.0	%	-14.1	%
Accrued interest receivable		13,455			11,093			9,183		21.3	%	46.5	%
Other real estate owned		75			75			75		-		-
Deferred income taxes		16,462			15,863			12,959		3.8	%	27.0	%
Goodwill and other intangibles		5,382			5,394			5,431		-0.2	%	-0.9	%
Operating lease right-of-use asset		13,520			11,785			12,457		14.7	%	8.5	%
Bank-owned life insurance ("BOLI")		71,656			71,072			72,485		0.8	%	-1.1	%
Other assets		9,538			7,286			7,986		30.9	%	19.4	%
Total Assets	$	3,546,193		$	3,265,612		$	2,967,528		8.6	%	19.5	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits	$	613,910		$	610,425		$	588,207		0.6	%	4.4	%
Interest bearing deposits		2,197,697			2,102,521			1,973,195		4.5	%	11.4	%
Total deposits		2,811,607			2,712,946			2,561,402		3.6	%	9.8	%
FHLB advances		382,261			212,123			71,711		80.2	%	433.1	%
Subordinated debentures		37,508			37,450			37,275		0.2	%	0.6	%
Operating lease liability		13,859			12,102			12,752		14.5	%	8.7	%
Other liabilities		9,704			8,309			10,364		16.8	%	-6.4	%
Total Liabilities		3,254,939			2,982,930			2,693,504		9.1	%	20.8	%
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000 shares authorized		-			-			-
Additional paid-in capital preferred stock		21,003			21,003			28,923		0.0	%	-27.4	%
Common stock: no par value, 40,000 shares authorized		-			-			-
Additional paid-in capital common stock		196,164			195,057			193,927		0.6	%	1.2	%
Retained earnings		115,109			105,894			81,171		8.7	%	41.8	%
Accumulated other comprehensive (loss) income		(6,491)			(6,149)			1,128		5.6	%	-675.4	%
Treasury stock, at cost		(34,531)			(33,123)			(31,125)		4.3	%	10.9	%
Total Stockholders' Equity		291,254			282,682			274,024		3.0	%	6.3	%
Total Liabilities and Stockholders' Equity	$	3,546,193		$	3,265,612		$	2,967,528		8.6	%	19.5	%
Outstanding common shares		16,931			16,974			16,940

	Three Months Ended December 31,
	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)	$	2,939,281	$	36,173	4.92	%		$	2,300,573	$	26,987	4.69	%
Investment Securities		110,142		1362	4.95	%			108,700		1,077	3.96	%
FHLB stock and other interest-earning assets		157,807		1,321	3.35	%			515,788		286	0.22	%
Total Interest-earning assets		3,207,230		38,856	4.85	%			2,925,061		28,350	3.88	%
Non-interest-earning assets		110,701							102,632
Total assets	$	3,317,931						$	3,027,693
Interest-bearing liabilities:
Interest-bearing demand accounts	$	729,160	$	1,295	0.71	%		$	668,765	$	549	0.33	%
Money market accounts		345,343		1,114	1.29	%			345,721		379	0.44	%
Savings accounts		334,394		118	0.14	%			329,130		129	0.16	%
Certificates of Deposit		734,216		3,974	2.17	%			659,479		1,185	0.72	%
Total interest-bearing deposits		2,143,112		6,501	1.21	%			2,003,095		2,242	0.45	%
Borrowed funds		239,252		2,174	3.63	%			153,837		954	2.48	%
Total interest-bearing liabilities		2,382,364		8,675	1.46	%			2,156,932		3,196	0.59	%
Non-interest-bearing liabilities		651,408							606,132
Total liabilities		3,033,772							2,763,064
Stockholders' equity		284,159							264,629
Total liabilities and stockholders' equity	$	3,317,931						$	3,027,693
Net interest income			$	30,181						$	25,154
Net interest rate spread(1)					3.39	%						3.28	%
Net interest margin(2)					3.76	%						3.44	%
(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.

	Year Ended December 31,
	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)	$	2,626,710	$	123,577	4.70	%		$	2,327,781	$	107,660	4.63	%
Investment Securities		109,604		4,731	4.32	%			108,545		3,954	3.64	%
FHLB stock and other interest-earning assets		274,649		3,133	1.14	%			377,209		959	0.25	%
Total Interest-earning assets		3,010,963		131,441	4.37	%			2,813,535		112,573	4.00	%
Non-interest-earning assets		106,712							106,039
Total assets	$	3,117,675						$	2,919,574
Interest-bearing liabilities:
Interest-bearing demand accounts	$	751,708	$	2,970	0.40	%		$	637,671	$	2,657	0.42	%
Money market accounts		350,207		2,313	0.66	%			335,824		1,678	0.50	%
Savings accounts		340,232		449	0.13	%			317,301		505	0.16	%
Certificates of Deposit		614,346		6,889	1.12	%			673,233		6,160	0.92	%
Total interest-bearing deposits		2,056,494		12,621	0.61	%			1,964,029		11,000	0.56	%
Borrowed funds		149,354		4,875	3.26	%			173,341		4,180	2.41	%
Total interest-bearing liabilities		2,205,848		17,496	0.79	%			2,137,370		15,180	0.71	%
Non-interest-bearing liabilities		636,216							524,668
Total liabilities		2,842,064							2,662,038
Stockholders' equity		275,611							257,536
Total liabilities and stockholders' equity	$	3,117,675						$	2,919,574
Net interest income			$	113,945						$	97,393
Net interest rate spread(1)					3.57	%						3.29	%
Net interest margin(2)					3.78	%						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) 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
	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
	(In thousands, except book values)
Total assets	$	3,546,193		$	3,265,612		$	3,072,771		$	3,040,310		$	2,967,528
Cash and cash equivalents		229,359			221,024			206,172			396,653			411,629
Securities		109,401			111,159			105,717			107,576			110,373
Loans receivable, net		3,045,331			2,787,015			2,620,630			2,395,930			2,304,942
Deposits		2,811,607			2,712,946			2,655,030			2,631,175			2,561,402
Borrowings		419,769			249,573			124,377			109,181			108,986
Stockholders' equity		291,254			282,682			271,637			276,159			274,024
Book value per common share1	$	15.96		$	15.42		$	15.04		$	14.72		$	14.47
Tangible book value per common share2	$	15.65		$	15.11		$	14.73		$	14.41		$	14.16
	Operating data by quarter
	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
	(In thousands, except for per share amounts)
Net interest income	$	30,181		$	30,951		$	27,741		$	25,072		$	25,154
Credit (provision) for loan losses		(500)			-			-			(2,575)			(985)
Non-interest income		1,062			1,446			(313)			(600)			2,608
Non-interest expense		16,037			13,453			13,056			12,959			13,707
Income tax expense		3,634			5,552			4,209			4,136			4,289
Net income	$	12,072		$	13,392		$	10,163		$	9,952		$	10,751
Net income per diluted share	$	0.69		$	0.76		$	0.58		$	0.56		$	0.61
Common Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
	Financial Ratios(3)
	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
Return on average assets		1.46%			1.74%			1.32%			1.33%			1.42%
Return on average stockholder's equity		16.99%			19.42%			15.00%			14.67%			16.25%
Net interest margin		3.76%			4.18%			3.74%			3.46%			3.44%
Stockholder's equity to total assets		8.21%			8.66%			8.84%			9.08%			9.23%
Efficiency Ratio4		51.33%			41.53%			47.60%			52.95%			49.37%
	Asset Quality Ratios
	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
	(In thousands, except for ratio %)
Non-Accrual Loans	$	5,109		$	8,505		$	9,201		$	9,232		$	14,889
Non-Accrual Loans as a % of Total Loans		0.17%			0.30%			0.35%			0.38%			0.64%
ALLL as % of Non-Accrual Loans		633.6%			390.3%			370.7%			368.1%			249.3%
Impaired Loans		28,272			40,524			42,411			40,955			49,382
Classified Loans		17,816			30,180			31,426			29,850			39,157
(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
	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
	(In thousands)
Residential one-to-four family	$	250,123		$	242,238		$	235,883		$	233,251		$	224,534
Commercial and multi-family		2,345,229			2,164,320			2,030,597			1,804,815			1,720,174
Construction		144,931			153,103			155,070			141,082			153,904
Commercial business		282,007			205,661			181,868			198,216			191,139
Home equity		56,888			56,064			51,808			52,279			50,469
Consumer		3,240			2,545			2,656			2,726			3,717
	$	3,082,418		$	2,823,931		$	2,657,882		$	2,432,369		$	2,343,937
Less:
Deferred loan fees, net		(4,714)			(3,721)			(3,139)			(2,459)			(1,876)
Allowance for loan loss		(32,373)			(33,195)			(34,113)			(33,980)			(37,119)
Total loans, net	$	3,045,331		$	2,787,015		$	2,620,630		$	2,395,930		$	2,304,942
	Non-Accruing Loans in Portfolio by quarter
	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
	(In thousands)
Residential one-to-four family	$	243		$	263		$	267		$	278		$	282
Commercial and multi-family		346			757			757			757			8,601
Construction		3,180			3,180			3,043			2,954			2,847
Commercial business		1,340			4,305			5,104			5,243			3,132
Home equity		-			-			30			-			27
Total:	$	5,109		$	8,505		$	9,201		$	9,232		$	14,889
	Distribution of Deposits by quarter
	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
	(In thousands)
Demand:
Non-Interest Bearing	$	613,909		$	610,425		$	595,167		$	621,403		$	588,207
Interest Bearing		757,615			726,012			810,535			724,020			668,262
Money Market		305,556			370,353			360,356			354,302			337,126
Sub-total:	$	1,677,080		$	1,706,790		$	1,766,058		$	1,699,725		$	1,593,595
Savings and Club		329,753			338,864			347,279			341,529			329,724
Certificates of Deposit		804,774			667,291			541,693			589,921			638,083
Total Deposits:	$	2,811,607		$	2,712,945		$	2,655,030		$	2,631,175		$	2,561,402

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
	Tangible Book Value per Share
	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
	(In thousands, except per share amounts)
Total Stockholders' Equity	$	291,254		$	282,682		$	271,637		$	276,159		$	274,024
Less: goodwill		5,252			5,252			5,252			5,252			5,252
Less: preferred stock		21,003			21,003			16,563			26,213			28,923
Total tangible common stockholders' equity		264,999			256,427			249,822			244,694			239,849
Shares common shares outstanding		16,931			16,974			16,960			16,984			16,940
Book value per common share	$	15.96		$	15.42		$	15.04		$	14.72		$	14.47
Tangible book value per common share	$	15.65		$	15.11		$	14.73		$	14.41		$	14.16
	Efficiency Ratios
	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
	(In thousands, except for ratio %)
Net interest income	$	30,181		$	30,951		$	27,741		$	25,072		$	25,154
Non-interest income		1,062			1,446			-313			-600			2,608
Total income		31,243			32,397			27,428			24,472			27,762
Non-interest expense		16,037			13,453			13,056			12,959			13,707
Efficiency Ratio		51.33%			41.53%			47.60%			52.95%			49.37%

Contact:		Thomas Coughlin,
		President & CEO
		Jawad Chaudhry, CFO
		(201) 823-0700