Exhibit 99.1

 

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

 

 

 

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., October 20, 2022 — 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

 

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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.

 

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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.

 

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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.

 

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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.

 

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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.

BCBP Reports Third Quarter 2022 Earnings

October 20, 2022

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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.

 

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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.

 

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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.

 

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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.

 

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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.

 

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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.

 

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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.

 

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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.

BCBP Reports Third Quarter 2022 Earnings

October 20, 2022

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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

BCBP Reports Third Quarter 2022 Earnings

October 20, 2022

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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.

BCBP Reports Third Quarter 2022 Earnings

October 20, 2022

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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.

BCBP Reports Third Quarter 2022 Earnings

October 20, 2022

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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.

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October 20, 2022

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		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
		(In thousands, except per share amounts, Unaudited)
Interest and dividend income:
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	%

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October 20, 2022

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		Statements of Income - Nine Months Ended,
		September 30, 2022				September 30, 2021				September 30, 2022 vs. September 30, 2021
		(In thousands, except per share amounts, Unaudited)
Interest and dividend income:
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	%

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October 20, 2022

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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
		(In Thousands, Unaudited)
ASSETS
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

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October 20, 2022

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		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

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October 20, 2022

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		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

BCBP Reports Third Quarter 2022 Earnings

October 20, 2022

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		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.”