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CST: 13/11/2019 08:44:22   

BCB Bancorp, Inc. Earnings Increase 14% to $5.2 Million in 3Q19, from 3Q18, Profits Grow 38% in First Nine Months of 2019

25 Days ago

BAYONNE, N.J., Oct. 18, 2019 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported that an increase in total interest income, and decreases in the provision for loan losses and non-interest expenses, contributed to third quarter and year-to-date 2019 profits. Net income increased $638,000, or 13.9 percent, to $5.2 million for the third quarter of 2019, compared with $4.6 million for the third quarter of 2018. In the preceding quarter, the Company earned $5.2 million.

For the first nine months of the year, net income increased $4.4 million, or 37.9 percent, to $15.9 million, compared with $11.5 million for the first nine months of 2018.

“Our third quarter 2019 financial performance demonstrates that the execution of our strategic plan is effective and continues to build shareholder value,” stated Thomas Coughlin, President and Chief Executive Officer.  “Our focus on producing strong core earnings, fostering new client relationships to fund our growth and strengthening our capital position, are all showing results.  Additionally, we are taking steps to strengthen our balance sheet and position ourselves for future growth and higher performance.  We remain focused on competing for business in our local markets and looking for additional growth opportunities.”

Executive Summary

  • Net income increased 13.9 percent to $5.2 million in the third quarter of 2019, compared to $4.6 million in the third quarter of 2018.
  • Earnings per diluted share increased to $0.30 in 3Q19, compared to $0.27 in 3Q18.
  • Net interest margin was 3.06 percent in the third quarter 2019, compared to 3.22 percent in the third quarter a year ago. This decrease was the result of our focus on increasing our cash position to allow for paydowns of borrowings and higher cost CDs.
  • Total assets increased 7.1 percent to $2.825 billion at September 30, 2019, compared to $2.638 billion a year earlier.
  • As a result of management’s focus on repositioning the balance sheet, net loans receivable increased 1.3 percent to $2.254 billion at September 30, 2019, compared to $2.225 billion a year earlier.
  • Allowance for loan losses as a percentage of non-accrual loans was 486.6 percent at September 30, 2019, compared to 193.9 percent at September 30, 2018.
  • Tangible book value improved to $11.72 at September 30, 2019 from $10.78 a year ago.
  • Earlier this month, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.14 per share. The dividend will be payable November 22, 2019, to common shareholders of record on November 8, 2019. 
  • The Company issued $6.3 million of private placement common stock which closed in February 2019 and $5.3 million of preferred series G stock, which was issued in January 2019. The Company had also issued $33.5 million of subordinated debt in July 2018 which, for regulatory purposes, is treated as Tier 1 capital for the Bank and Tier 2 capital for the Company, when applicable.

Balance Sheet Review

Total assets increased by $187.6 million, or 7.1 percent, to $2.825 billion at September 30, 2019 from $2.638 billion at September 30, 2018 and increased by $87.4 million, or 3.2 percent, compared to June 30, 2019. The increase in total assets was primarily the result of an increase in total cash and cash equivalents as a result of new deposit relationships, proceeds from FHLB borrowings, and the inclusion of operating and finance leases due to accounting standards changes.

Net loans receivable increased by $28.7 million, or 1.3 percent, to $2.254 billion at September 30, 2019 from $2.225 billion at September 30, 2018, and decreased slightly compared to $2.300 billion at June 30, 2019. After significant loan growth in 2018, management focused on repositioning the balance sheet, which included curtailing loan growth and strengthening our capital position. The change in loans over the first nine months of 2019 represented decreases of $28.9 million in commercial real estate and multi-family loans, $9.2 million in home equity loans, $5.1 million in residential one-to-four family loans, $3.5 million in commercial business loans, and $81,000 in consumer loans,  partly offset by an increase of  $23.9 million in construction loans.

Total cash and cash equivalents increased by $169.9 million, or 82.2 percent, to $376.6 million at September 30, 2019 from $206.7 million a year ago, and increased by $149.0 million, or 65.4 percent compared to $227.6 million three months earlier. The Company’s level of cash and cash equivalents is a part of the Company’s strategy to maintain strong levels of liquidity. Total investment securities decreased by $23.8 million, or 18.6 percent, to $104.1 million at September 30, 2019 from $127.9 million at September 30, 2018, and decreased by $18.1 million, or 14.8 percent, compared to $122.2 million at June 30, 2019, representing normal repayments, calls, and maturities.

On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") No. 2016-02 - Leases, requiring on-balance sheet reporting for all operating leases, which resulted in the recording of $14.0 million in operating lease right-of-use assets and a corresponding $14.1 million in operating lease liabilities at September 30, 2019.

Total deposits increased by $146.8 million, or 6.9 percent, to $2.263 billion at September 30, 2019 from $2.117 billion at September 30, 2018, and increased by $55.2 million, or 2.5 percent, from $2.208 billion at June 30, 2019.  Increases over the first nine months of 2019 included $50.2 million in money market checking accounts, $12.2 million in non-interest bearing deposits, $13.9 million in transaction accounts, and $10.4 million in certificates of deposit, partly offset by decreases of $4.0 million in savings and club accounts. The Company uses listing service and brokered certificates of deposit as additional sources of deposit liquidity, which totaled $10.9 million and $0, respectively, at September 30, 2019.

Debt obligations remained flat at $312.6 million at September 30, 2019 compared to a year ago and increased $30.1 million compared to $282.5 million at June 30, 2019.  Debt obligations consisted of both Federal Home Loan Bank (“FHLB”) borrowings and subordinated debt balances. FHLB borrowings reflect the use of long-term advances to augment deposits as the Company’s funding source for originating loans and investing in investment securities. The increase in FHLB borrowings in the current quarter related to replacing $40 million in advance of the borrowing maturity dates in the next quarter that were secured at favorable interest rates. The weighted average interest rate of FHLB advances was 2.15 percent at September 30, 2019. The issuance of subordinated debt was to maintain adequate capital ratios for further growth. The fixed interest rate of subordinated debt balances was 5.625% at September 30, 2019.

Stockholders’ equity increased by $28.0 million, or 14.3 percent, to $223.7 million at September 30, 2019 from $195.8 million at September 30, 2018, and increased by $2.6 million, or 1.2 percent, compared to $221.2 million three months earlier. The year-over-year increase in stockholders’ equity was primarily attributable to the Company’s issuance of $6.3 million of common stock in a private placement which closed in February 2019 and the issuance of $5.3 million of preferred series G stock in a private placement, which was issued in January 2019. Retained earnings increased by $10.2 million to $45.9 million at September 30, 2019 from $35.7 million a year ago, due primarily to the increase in net income, net of dividends paid, and the decrease in the accumulated other comprehensive loss of $4.0 million.

Third Quarter Income Statement Review

Net interest income increased by $680,000, or 3.4 percent, to $20.8 million for the third quarter of 2019 from $20.1 million for the third quarter of 2018.  The increase in net interest income resulted primarily from an increase in the average balance of interest-earning assets of $213.0 million, or 8.5 percent, to $2.710 billion for the third quarter of 2019 from $2.497 billion for the third quarter a year ago. There was also an increase in the average yield on interest-earning assets of 15 basis points to 4.63 percent for the third quarter of 2019 from 4.48 percent for the third quarter of 2018. The average balance of interest-bearing liabilities increased $173.6 million, or 8.3 percent, to $2.265 billion for the third quarter of 2019 from $2.092 billion for the third quarter of 2018, and there was an increase in the average rate on interest-bearing liabilities of 36 basis points to 1.87 percent for the third quarter of 2019 from 1.51 percent for the third quarter a year ago. Interest income on loans also included $505,000 of amortization of purchase credit adjustments related to the acquisition of IAB for the three months ended September 30, 2019, which added approximately seven basis points to the average yield on interest earning assets on an annualized basis.

Net interest margin was 3.06 percent for the third quarter of 2019 and 3.22 percent for the third quarter of 2018.  “The decrease in our net interest margin for the current quarter was the result of a competitively higher interest rate environment, with the increase in the cost of funds outpacing the return on interest earning assets,” Coughlin said. “We expect with the two recent Federal Reserve rate cuts for our net interest margin to continue to remain under pressure in the short term.”

Total non-interest income decreased by $469,000, or 25.3 percent, to $1.4 million for the third quarter of 2019 from $1.9 million for the third quarter of 2018. The decrease in total non-interest income was mainly related to lower income from fees and service charges as well as lower gains on sale of loans, partly offset by higher gains on sale of other real estate owned properties and gains on sale of investment securities. Fees and service charges decreased $237,000, or 21.7 percent to $855,000 for the third quarter of 2019 from $1.1 million for the third quarter of 2018, mainly related to less mortgage servicing fee income with less sales of loans. Gain on sales of loans decreased by $649,000, or 87.9 percent, to $89,000 for the third quarter of 2019 from $738,000 for the third quarter of 2018. Factors considered when deciding to sell loans include market conditions, demand, and the loan portfolio. Gains on sale of other real estate owned properties increased by $110,000, to $124,000 for the third quarter of 2019 from a gain of $14,000 for the third quarter of 2018. Gain on sale of investment securities was $283,000 for the third quarter of 2019, with no comparable sales for the third quarter a year ago.

Third quarter total non-interest expense decreased by $739,000, or 5.1 percent, to $13.7 million from $14.4 million for the third quarter a year ago. Regulatory fees associated with FDIC assessments decreased by $510,000 for the third quarter of 2019 from $419,000 for the third quarter of 2018. The decrease was primarily due to a decrease in the assessment rate, a credit that related to the receipt of an FDIC Small Bank Assessment Credit, which came as a result of the FDIC exceeding its stated Deposit Fund Reserve Ratio, partly offset by an increase in the assessment base.  Data processing expense decreased by $166,000, or 17.6 percent, to $776,000 for the third quarter of 2019 from $942,000 for the third quarter a year ago primarily attributable to non-recurring charges in the third quarter of 2018 related to the merger with IAB.  There were no merger-related expenses during the third quarter of 2019, compared to $119,000 in merger-related costs in the third quarter a year ago. Salaries and employee benefits expense increased by a modest 1.9 percent, or $138,000. The increase in salaries and employee benefits related in part to normal salary increases, partly offset by a reduction in full-time equivalent employees, from 371 at September 30, 2018 to 352 at September 30, 2019, as part of management’s continued initiative to manage headcount throughout the organization. Occupancy expense increased by $157,000, or 6.3 percent, to $2.6 million for the third quarter of 2019 from $2.5 million for the third quarter a year earlier, largely related to the opening of three new branches in 2019.

The income tax provision increased by $319,000, or 15.6 percent, to $2.4 million for the third quarter of 2019 from $2.0 million for the third quarter of 2018. The increase in the income tax provision comes as a result of higher taxable income for the third quarter of 2019 as compared to that same period for 2018. The consolidated effective tax rate for the third quarter of 2019 was 31.1 percent compared to 30.8 percent for the third quarter a year ago.

Year to Date Income Statement Review

Net interest income increased by $6.0 million, or 10.6 percent, to $62.5 million for first nine months of 2019 from $56.5 million for the first nine months of 2018. Net interest margin was 3.14 percent for the first nine months of 2019 compared to 3.34 percent for the first nine months of 2018. The decrease in the net interest margin was the result of a comparatively higher interest rate environment, with the increase in the average cost of funds outpacing the return on interest earning assets for the nine-month period ended September 30, 2019 as compared to the same period one year ago. Interest income on loans also included $1.5 million of amortization of purchase credit adjustments related to the acquisition of IAB for the nine months ended September 30, 2019, which added approximately eight basis points to the average yield on interest earning assets on an annualized basis.

Total non-interest income decreased by $2.4 million, or 35.7 percent, to $4.4 million for the first nine months of 2019 from $6.8 million for the first nine months a year ago. The decrease in total non-interest income mainly related to a decrease in the amount of other non-interest income of $2.2 million, or 92.5 percent, to $179,000 for the first nine months of 2019 from $2.4 million for the first nine months a year ago. The decrease in other non-interest income was the result of $2.2 million in proceeds from a legal settlement recognized in the first quarter of 2018.

Total non-interest expense decreased by $1.1 million or 2.5 percent, to $41.3 million for the first nine months of 2019 from $42.4 million for the first nine months of 2018. There were no merger-related expenses in the first nine months of 2019, compared to $2.3 million in the first nine months of 2018.  “Excluding the prior-year merger costs, total non-interest expense rose 3.1% over last year. Management is pleased with the results of our cost containment efforts. The increase would be less considering that the prior year did not include IAB non-interest costs until the merger date of April 17, 2018,” Coughlin stated.

The income tax provision increased by $2.0 million, or 40.1 percent, to $7.1 million for the first nine months of 2019 from $5.1 million for the first nine months of 2018. The increase in the income tax provision comes as a result of higher taxable income for the first nine months ended September 30, 2019 as compared to that same period for 2018. The consolidated effective tax rate for the first nine months of 2019 was 30.9 percent compared to 30.6 percent for the first nine months of 2018.

Asset Quality

The provision for loan losses remained relatively flat at $900,000 for the third quarter of 2019 as compared to $907,000 for the third quarter of 2018.  Year-to-date, the provision for loan losses decreased by $1.8 million, to $2.5 million for the first nine months of 2019 from $4.3 million for the first nine months of 2018, mainly related to the loan growth curtailment. Non-accruing loans improved to $5.1 million, or 0.22 percent, of gross loans at September 30, 2019 as compared to $11.1 million, or 0.49 percent, of gross loans at September 30, 2018.

Performing troubled debt restructured (“TDR”) loans that were not included in nonaccrual loans at September 30, 2019, were $16.5 million, compared to $21.8 million at June 30, 2019 and $20.6 million at September 30, 2018.  Borrowers who are in financial difficulty and who have been granted concessions that may include interest rate reductions, term extensions, or payment alterations are categorized as TDR loans. 

The allowance for loan losses was $24.7 million, or 486.6 percent of non-accruing loans and 1.08 percent of gross loans, at September 30, 2019 as compared to an allowance for loan losses of $23.8 million, or 433.5 percent of non-accruing loans and 1.02 percent of gross loans, at June 30, 2019 and an allowance for loan losses of $21.5 million or 193.9 percent of non-accruing loans and 0.96 percent of gross loans, a year ago.

The Company recognized net recoveries of $2,000 during the third quarter of 2019. This compares to net recoveries of $30,000 in the second quarter of 2019 and net charge offs of $43,000 in the third quarter a year ago. Year-to-date, the Company recognized $212,000 in net charge-offs compared to $180,000 in net charge-offs in the first nine months of 2018.

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 30 branch offices in Bayonne, Carteret, Colonia, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lodi, Lyndhurst, Maplewood, Monroe Township, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, three branches in Hicksville and Staten Island, New York. The Bank provides business and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.

In September 2019, the Company announced its inclusion into the prestigious Sandler O'Neill Sm-All Stars Class of 2019, an elite group of 30 publicly traded small-cap banks and thrifts, based on growth, profitability, credit quality and capital strength.

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: difficulties and delays in integrating the Indus-American Bank business or fully realizing cost savings and other benefits of the Merger; business disruption following the Merger; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer acceptance of BCB products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; 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 core 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, 2019 June 30, 2019 September 30, 2018 September 30, 2019 vs.
June 30, 2019
September 30, 2019 vs.
September 30, 2018
Interest and dividend income: (Dollars in thousands)    
Loans, including fees $ 28,860   $ 28,634   $ 26,019   0.8 % 10.9 %
Mortgage-backed securities   652     738     827   -11.7 % -21.2 %
Other investment securities   107     197     116   -45.7 % -7.8 %
FHLB stock and other interest earning assets   1,750     1,173     1,009   49.2 % 73.4 %
Total interest and dividend income   31,369     30,742     27,971   2.0 % 12.1 %
           
 Interest expense:          
Deposits:          
Demand   1,898     1,750     1,130   8.5 % 68.0 %
Savings and club   102     110     116   -7.3 % -12.1 %
Certificates of deposit   6,603     6,097     4,591   8.3 % 43.8 %
    8,603     7,957     5,837   8.1 % 47.4 %
Borrowings   2,006     1,920     2,054   4.5 % -2.3 %
Total interest expense   10,609     9,877     7,891   7.4 % 34.4 %
           
Net interest income   20,760     20,865     20,080   -0.5 % 3.4 %
Provision for loan losses   900     755     907   19.2 % -0.8 %
           
Net interest income after provision for loan losses   19,860     20,110     19,173   -1.2 % 3.6 %
           
Non-interest income:          
Fees and service charges    855     802     1,092   6.6 % -21.7 %
Gain on sales of loans   89     437     738   -79.6 % -87.9 %
Gain on sales of other real estate owned   124     45     14   175.6 % 7.86  
Gain on sale of investment securities   283     21     -   1247.6 % 0.0 %
Unrealized (loss) on equity investments   (45 )   (26 )   (82 ) 73.1 % 45.1 %
Other   77     49     90   57.1 % -14.4 %
Total non-interest income   1,383     1,328     1,852   4.1 % -25.3 %
           
Non-interest expense:           
Salaries and employee benefits   7,294     6,918     7,156   5.4 % 1.9 %
Occupancy and equipment   2,647     2,649     2,490   -0.1 % 6.3 %
Data processing and service fees   776     731     942   6.2 % -17.6 %
Professional fees   368     473     437   -22.2 % -15.8 %
Director fees   356     316     192   12.7 % 85.4 %
Regulatory assessments   (91 )   417     419   -121.8 % -121.7 %
Advertising and promotional   64     123     129   -48.0 % -50.4 %
Other real estate owned, net   (31 )   124     22   -125.0 % -240.9 %
Merger related costs   -     -     119   -   -100.0 %
Other   2,269     2,143     2,485   5.9 % -8.7 %
Total non-interest expense   13,652     13,894     14,391   -1.7 % -5.1 %
           
Income before income tax provision   7,591     7,544     6,634   0.6 % 14.4 %
Income tax provision     2,359     2,317     2,040   1.8 % 15.6 %
           
Net Income $ 5,232   $ 5,227   $ 4,594   0.1 % 13.9 %
Preferred stock dividends   342     342     263   -   30.0 %
Net Income available to common stockholders $ 4,890   $ 4,885   $ 4,331   0.1 % 12.9 %
           
Net Income per common share-basic and diluted          
Basic $ 0.30   $ 0.30   $ 0.27   -   11.1 %
Diluted $ 0.30   $ 0.30   $ 0.27   -   11.1 %
           
Weighted average number of common shares outstanding          
Basic   16,468     16,413     15,789   0.3 % 4.3 %
Diluted   16,523     16,471     15,896   0.3 % 3.9 %
           


  Nine Months Ended,  
  September 30, 2019 September 30, 2018 September 30, 2019 vs.
September 30, 2018
Interest and dividend income: (Dollars in thousands)  
Loans, including fees $ 85,727 $ 69,588   23.2 %
Mortgage-backed securities   2,160   2,363   -8.6 %
Other investment securities   432   416   3.8 %
FHLB stock and other interest earning assets   4,270   2,242   90.5 %
Total interest and dividend income   92,589   74,609   24.1 %
       
Interest expense:      
Deposits:      
Demand   5,224   2,902   80.0 %
Savings and club   325   318   2.2 %
Certificates of deposit   18,690   10,726   74.2 %
    24,239   13,946   73.8 %
Borrowings   5,823   4,153   40.2 %
Total interest expense   30,062   18,099   66.1 %
       
Net interest income   62,527   56,510   10.6 %
Provision for loan losses   2,544   4,309   -41.0 %
       
Net interest income after provision for loan losses   59,983   52,201   14.9 %
       
Non-interest income:      
Fees and service charges   2,540   2,773   -8.4 %
Gain on sales of loans   844   1,897   -55.5 %
Gain (loss) on bulk sale of impaired loans held in portfolio   107   (24 ) 545.8 %
Gain on sales of other real estate owned   177   4   4325.0 %
Gain on sale of investment securities   304   -   -  
Unrealized gain (loss) on equity investments   220   (242 ) 190.9 %
Other   179   2,393   -92.5 %
Total non-interest income   4,371   6,801   -35.7 %
       
Non-interest expense:       
Salaries and employee benefits   21,127   20,548   2.8 %
Occupancy and equipment   7,926   7,028   12.8 %
Data processing and service fees   2,228   2,499   -10.8 %
Professional fees   1,374   1,475   -6.8 %
Director fees   990   594   66.7 %
Regulatory assessments   783   948   -17.4 %
Advertising and promotional   260   314   -17.2 %
Other real estate owned, net   77   213   -63.8 %
Merger related costs   -   2,303   -100.0 %
Other   6,558   6,460   1.5 %
Total non-interest expense   41,323   42,382   -2.5 %
       
Income before income tax provision   23,031   16,620   38.6 %
Income tax provision   7,121   5,081   40.1 %
       
Net Income $ 15,910 $ 11,539   37.9 %
Preferred stock dividends   1,002   691   45.0 %
Net Income available to common stockholders $ 14,908 $ 10,848   37.4 %
       
Net Income per common share-basic and diluted      
Basic $ 0.91 $ 0.70   30.0 %
Diluted $ 0.91 $ 0.69   31.9 %
       
Weighted average number of common shares outstanding      
Basic   16,320   15,482   5.4 %
Diluted   16,369   15,609   4.9 %
       


Statements of Financial Condition September 30, 2019 June 30, 2019 September 30, 2018 September 30, 2019 vs
June 30, 2019
September 30, 2019 vs
September 30, 2018
 ASSETS (Dollars in thousands)    
Cash and amounts due from depository institutions $ 27,625   $ 20,660   $ 32,459   33.7 % -14.9 %
Interest-earning deposits   348,986     206,982     174,251   68.6 % 100.3 %
Total cash and cash equivalents   376,611     227,642     206,710   65.4 % 82.2 %
           
Interest-earning time deposits   735     735     980   -   -25.0 %
Debt securities available for sale   98,218     116,258     119,811   -15.5 % -18.0 %
Equity investments   5,857     5,901     8,052   -0.7 % -27.3 %
Loans held for sale   3,195     -     1,772   -   80.3 %
Loans receivable, net of allowance for loan losses          
of $24,691, $23,789, and $21,504, respectively   2,253,699     2,299,765     2,225,001   -2.0 % 1.3 %
Federal Home Loan Bank of New York stock, at cost   15,171     13,821     14,755   9.8 % 2.8 %
Premises and equipment, net   20,315     19,482     20,392   4.3 % -0.4 %
Operating lease right-of-use asset   13,951     14,650     -   -4.8 % -  
Accrued interest receivable   8,959     9,315     8,635   -3.8 % 3.8 %
Other real estate owned   -     1,235     1,232   -100.0 % -100.0 %
Deferred income taxes   13,445     12,962     11,607   3.7 % 15.8 %
Goodwill and other intangibles   5,570     5,587     5,223   -0.3 % 6.6 %
Other assets   9,773     10,777     13,698   -9.3 % -28.7 %
Total Assets $ 2,825,499   $ 2,738,130   $ 2,637,868   3.2 % 7.1 %
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
LIABILITIES          
Non-interest bearing deposits $ 276,235   $ 278,602   $ 276,998   -0.8 % -0.3 %
Interest bearing deposits   1,987,222     1,929,620     1,839,626   3.0 % 8.0 %
Total deposits   2,263,457     2,208,222     2,116,624   2.5 % 6.9 %
FHLB advances   275,800     245,800     275,800   12.2 % -  
Subordinated debentures   36,752     36,693     36,519   0.2 % 0.6 %
Operating lease liability   14,054     14,724     -   -4.6 % -  
Other liabilities   11,717     11,538     13,162   1.6 % -11.0 %
Total Liabilities    2,601,780     2,516,977     2,442,105   3.4 % 6.5 %
           
STOCKHOLDERS' EQUITY          
Preferred stock: $0.01 par value, 10,000,000 shares authorized       -     -   -   -  
Additional paid-in capital preferred stock   25,016     25,016     19,706   -   26.9 %
Common stock: no par value, 20,000,000 shares authorized       -     -   -   -  
Additional paid-in capital common stock   177,253     176,767     175,970   0.3 % 0.7 %
Retained earnings   45,947     43,347     35,693   6.0 % 28.7 %
Accumulated other comprehensive (loss)   (2,449 )   (1,929 )   (6,490 ) 27.0 % -62.3 %
Treasury stock, at cost   (22,048 )   (22,048 )   (29,116 ) -   -24.3 %
Total Stockholders' Equity   223,719     221,153     195,763   1.2 % 14.3 %
           
Total Liabilities and Stockholders' Equity $ 2,825,499   $ 2,738,130   $ 2,637,868   3.2 % 7.1 %
           
Outstanding common shares   16,477     16,461     15,799   0.1 % 4.3 %
           


    Three Months Ended September 30,
    2019       2018  
    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 $ 2,309,703   $ 28,860   5.00 %   $ 2,183,872   $ 26,019   4.77 %
Investment Securities   111,551     759   2.72 %     148,540     943   2.54 %
Interest-earning deposits   289,080     1,750   2.42 %     164,944     1,009   2.45 %
Total Interest-earning assets   2,710,334     31,369   4.63 %     2,497,356     27,971   4.48 %
Non-interest-earning assets   75,904               63,729          
Total assets $ 2,786,238             $ 2,561,085          
Interest-bearing liabilities:                              
Interest-bearing demand accounts $ 344,439   $ 661   0.77 %   $ 336,373   $ 504   0.60 %
Money market accounts   269,775     1,237   1.84 %     195,436     626   1.28 %
Savings accounts   257,392     102   0.16 %     265,610     116   0.17 %
Certificates of Deposit   1,095,481     6,603   2.41 %     969,475     4,591   1.89 %
Total interest-bearing deposits   1,967,087     8,603   1.75 %     1,766,894     5,837   1.32 %
Borrowed funds   298,152     2,006   2.69 %     324,767     2,054   2.53 %
Total interest-bearing liabilities   2,265,239     10,609   1.87 %     2,091,661     7,891   1.51 %
Non-interest-bearing liabilities   299,230               274,850          
Total liabilities   2,564,469               2,366,511          
Stockholders' equity   221,769               194,574          
Total liabilities and stockholders' equity $ 2,786,238             $ 2,561,085          
Net interest income       $ 20,760             $ 20,080    
Net interest rate spread(1)             2.76 %               2.97 %
Net interest margin(2)             3.06 %               3.22 %
                               
                               

(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.


    Nine Months Ended September 30,
    2019       2018  
    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 $  2,318,047   $  85,727   4.93 %   $  1,983,562   $  69,588   4.68 %
Investment Securities    120,560      2,592   2.87 %      142,712      2,779   2.60 %
Interest-earning deposits    220,318      4,270   2.58 %      127,977      2,242   2.34 %
Total Interest-earning assets    2,658,925      92,589   4.64 %      2,254,251      74,609   4.41 %
Non-interest-earning assets    72,718                53,375          
Total assets $  2,731,643             $  2,307,626          
Interest-bearing liabilities:                              
Interest-bearing demand accounts $  342,515   $  1,913   0.74 %   $  328,908   $  1,402   0.57 %
Money market accounts    253,593      3,311   1.74 %      179,290      1,500   1.12 %
Savings accounts    259,093      325   0.17 %      263,156      318   0.16 %
Certificates of Deposit    1,079,090      18,690   2.31 %      859,949      10,726   1.66 %
Total interest-bearing deposits    1,934,291      24,239   1.67 %      1,631,303      13,946   1.14 %
Borrowed funds    288,399      5,823   2.69 %      245,567      4,153   2.26 %
Total interest-bearing liabilities    2,222,690      30,062   1.80 %      1,876,870      18,099   1.29 %
Non-interest-bearing liabilities    293,557                243,973          
Total liabilities    2,516,247                2,120,843          
Stockholders' equity    215,396                186,783          
Total liabilities and stockholders' equity $  2,731,643             $  2,307,626          
Net interest income       $  62,527             $  56,510    
Net interest rate spread(1)             2.84 %               3.13 %
Net interest margin(2)             3.14 %               3.34 %
                               
                               

(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.

  Financial condition data by quarter
  Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018
           
  (In thousands, except tangible book value)
Total assets $ 2,825,499   $ 2,738,130   $ 2,718,400   $ 2,674,731   $ 2,637,868  
Cash and cash equivalents   376,611     227,642     193,548     195,264     206,710  
Securities   104,075     122,159     125,905     127,007     127,863  
Loans receivable, net   2,253,699     2,299,765     2,307,140     2,278,492     2,225,001  
Deposits   2,263,457     2,208,222     2,188,633     2,180,724     2,116,624  
Borrowings   312,552     282,493     282,435     282,377     312,319  
Stockholders’ equity   223,719     221,153     216,718     200,215     195,763  
Tangible Book Value   11.72     11.58     11.35     11.00     10.78  
           
  Operating data by quarter
  Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018
           
  (In thousands, except for per share amounts)
Net interest income $ 20,760   $ 20,865   $ 20,902   $ 21,171   $ 20,080  
Provision for loan losses   900     755     889     821     907  
Non-interest income   1,383     1,328     1,660     1,159     1,852  
Non-interest expense   13,652     13,894     13,777     13,884     14,391  
Income tax expense   2,359     2,317     2,445     2,401     2,040  
Net income $ 5,232   $ 5,227   $ 5,451   $ 5,224   $ 4,594  
Net income per diluted share $ 0.30   $ 0.30   $ 0.32   $ 0.31   $ 0.27  
Common Dividends declared per share $ 0.14   $ 0.14   $ 0.14   $ 0.14   $ 0.14  
           
  Financial Ratios
  Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018
Return on average assets   0.75 %   0.77 %   0.81 %   0.78 %   0.72 %
Return on average stockholder’s equity   9.44 %   9.61 %   10.55 %   10.66 %   9.44 %
Net interest margin   3.06 %   3.16 %   3.18 %   3.24 %   3.22 %
Stockholder’s equity to total assets   7.92 %   8.08 %   7.97 %   7.49 %   7.42 %
Efficiency Ratio   61.65 %   62.61 %   61.06 %   62.18 %   65.62 %
           
  Asset Quality Ratios
  (In thousands, except for ratio %)
  Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018
Non-Accrual Loans $ 5,074   $ 5,488   $ 5,670   $ 7,221   $ 11,093  
Non-Accrual Loans as a % of Total Loans   0.22 %   0.24 %   0.24 %   0.31 %   0.49 %
ALLL as % of Non-Accrual Loans   486.62 %   433.47 %   405.71 %   309.64 %   193.85 %
Impaired Loans   30,856     37,275     40,533     42,408     47,251  
Classified Loans   15,998     22,679     23,977     26,161     30,179  
           


  Recorded Investment in Loans Receivable by quarter
  Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018
    (In Thousands)
Residential one-to-four family $ 252,971   $ 258,688   $ 258,184   $ 258,085   $ 254,149  
Commercial and multi-family   1,668,982     1,702,132     1,724,326     1,697,837     1,701,105  
Construction   131,697     134,963     114,462     107,783     75,601  
Commercial business   161,649     164,569     167,067     165,193     142,312  
Home equity   63,645     63,927     66,946     72,895     73,714  
Consumer   728     727     731     809     1,368  
  $ 2,279,672   $ 2,325,006   $ 2,331,716   $ 2,302,602   $ 2,248,249  
Less:          
Deferred loan fees, net   (1,282 )   (1,452 )   (1,572 )   (1,751 )   (1,744 )
Allowance for loan loss   (24,691 )   (23,789 )   (23,004 )   (22,359 )   (21,504 )
           
Total loans, net $ 2,253,699   $ 2,299,765   $ 2,307,140   $ 2,278,492   $ 2,225,001  
           
  Non-Accruing Loans in Portfolio by quarter
  Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018
    (In Thousands)
Originated loans:          
Residential one-to-four family $ 814   $ 1,022   $ 1,415   $ 1,160   $ 1,457  
Commercial and multi-family   1,584     1,881     1,364     2,568     5,572  
Commercial business   887     745     256     356     251  
Home equity   350     129     272     277     338  
Sub-total: $ 3,635   $ 3,777   $ 3,307   $ 4,361   $ 7,618  
           
Acquired loans initially recorded at fair value:        
Residential one-to-four family $ 1,046   $ 1,116   $ 1,704   $ 2,165   $ 2,590  
Commercial and multi-family   -     -     597     605     590  
Commercial business   378     378     -     48     295  
Home equity   15     217     62     42     -  
Sub-total: $ 1,439   $ 1,711   $ 2,363   $ 2,860   $ 3,475  
           
Total: $ 5,074   $ 5,488   $ 5,670   $ 7,221   $ 11,093  
           


  Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
           
  Tangible Book Value per Share
  Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018
    (In Thousands, except per share amounts)
Total Stockholders' Equity $ 223,719   $ 221,153   $ 216,718   $ 200,215   $ 195,763  
Less: goodwill and other intangibles   5,570     5,587     5,584     5,699     5,714  
Less: preferred stock   25,016     25,016     25,016     19,706     19,706  
Total tangible stockholders' equity   193,133     190,550     186,118     174,810     170,343  
Shares outstanding   16,477     16,461     16,398     15,889     15,799  
Book value per share $ 13.58   $ 13.43   $ 13.22   $ 12.60   $ 12.39  
Tangible book value per share $ 11.72   $ 11.58   $ 11.35   $ 11.00   $ 10.78  
           
  Efficiency Ratios
  Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018
    (In Thousands)
Net interest income $ 20,760   $ 20,865   $ 20,902   $ 21,171   $ 20,080  
Non-interest income   1,383     1,328     1,660     1,159     1,852  
Total income   22,143     22,193     22,562     22,330     21,932  
Non-interest expense   13,652     13,894     13,777     13,884     14,391  
Efficiency Ratio   61.65 %   62.61 %   61.06 %   62.18 %   65.62 %
           

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

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