BAYONNE, N.J., April 21, 2021 (GLOBE NEWSWIRE) — BCB Bancorp, Inc. (the �Company), (NASDAQ: BCBP), the holding company for BCB Community Bank (the Bank), today reported net income of $7.1 million for the first quarter of 2021, compared to $7.3 million in the fourth quarter of 2020, and $2.5 million in the first quarter of 2020. Earnings per diluted share in the first quarter of 2021 were $0.40, compared to $0.41 in the preceding quarter and $0.12 in the first quarter of 2020. The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.14 per share. The dividend will be payable May 24, 2021, to common shareholders of record on May 10, 2021.
Earnings for the first quarter of the year were strong, with higher net interest income and improved efficiencies, stated Thomas Coughlin, President and Chief Executive Officer. Loan accommodations continued to decline during the quarter as our clients experienced steady recoveries and local markets resumed activity. We have remained focused on credit quality and maintaining our strong capital position while helping our customers. Our continued efforts to deleverage the balance sheet, control interest expense, and deploy excess cash helped expand our net interest margin by 13 basis points during the first quarter of 2021, compared to the prior quarter. We believe our reserve levels are adequate to cover potential loan losses stemming from the pandemic. As the Federal Reserve anticipates economic growth in the second half of the year and as vaccinations continue to roll out, the Company has laid a solid foundation from which to emerge from the pandemic even stronger.
At the early onset of the pandemic, we were active participants in the first round of the Small Business Administrations (SBA) Paycheck Protection Program (PPP), allowing us to assist approximately 1,100 of our customers who received $133 million in PPP funding during 2020. As regulations, guidance, and the forgiveness process for PPP loans continued to evolve, we recognized the operational risk and complexity associated with this portfolio. As a result, we sold the PPP loan portfolio during the fourth quarter of 2020 to a third party.
The Company is particpating in the latest round of PPP lending pursuant to the Consolidated Appropriations Act of 2021 (CAA), the PPP Extension Act of 2021 and the American Rescue Plan Act (ARPA). The CAA provided additional COVID-19 stimulus relief and included $284 billion allocated for another round of PPP lending. The program offered new PPP loans for companies that did not receive a PPP loan in 2020, as well as second-draw loans targeted at hard-hit businesses that have already spent their initial PPP proceeds. We have been active participants in this new round of PPP funding by partnering as a referral agent with an SBA Small Business Lending Company, The Loan Source Inc., for the application, forgiveness, and ongoing-service process of PPP loans, thereby eliminating our operational risk and allowing us to continue to help our business customers as we did during the first round of funding, said Coughlin.
Executive Summary
Balance Sheet Review
Total assets increased by $31.4 million, or 1.1 percent, to $2.852 billion at March 31, 2021 from $2.821 billion at December 31, 2020. The increase in total assets was mainly related to an increase in total cash and cash equivalents, partly offset by a decrease in investment securities.
Total cash and cash equivalents increased by $35.7 million, or 13.7 percent, to $296.9 million at March 31, 2021 from $261.2 million at December 31, 2020. This increase was mainly related to an increase in deposits, partly offset by net repayments of borrowings.
Loans receivable, net increased by $1.4 million, or 0.1 percent, to $2.296 billion at March 31, 2021 from $2.295 billion at December 31, 2020. Total loan increases for the first quarter of 2021 included increases of $11.3 million in construction loans, $9.3 million in commercial real estate and multi-family loans, and $29,000 in consumer loans, partly offset by decreases of $10.0 million in residential one-to-four family loans, $7.0 million in commercial business loans, and $307,000 in home equity loans. The allowance for loan losses increased $1.8 million to $35.5 million, or 246.3 percent of non-accruing loans and 1.52 percent of gross loans, at March 31, 2021 as compared to an allowance for loan losses of $33.6 million, or 205.2 percent of non-accruing loans and 1.44 percent of gross loans, at December 31, 2020.
Total investment securities decreased by $5.6 million, or 4.8 percent, to $111.9 million at March 31, 2021 from $117.5 million at December 31, 2020, representing repayments, calls and maturities, partly offset by purchases of $757,000.
Deposit liabilities increased by $86.1 million, or 3.7 percent, to $2.404 billion at March 31, 2021 from $2.318 billion at December 31, 2020. The increase in deposit liabilities mainly related to the recent payments to individuals under the ARPA and the second round of PPP payments under the CAA. Total increases for the three months ended March 31, 2021 included $52.0 million in non-interest-bearing deposit accounts, $20.2 million in money market checking accounts, $13.5 million in savings and club accounts and $6.3 million in NOW deposit accounts. The increase in deposits was partly offset by decreases of $5.9 million in certificates of deposit, including listing service and brokered deposit accounts. The Company utilizes listing service and brokered certificates of deposit as additional sources of deposit liquidity to fund loan growth. At March 31, 2021, the Company had $17.0 million in listing service deposits and no brokered certificates of deposit.
Debt obligations decreased by $57.8 million, or 25.3 percent, to $170.4 million at March 31, 2021 from $228.2 million at December 31, 2020. The weighted average interest rate of FHLB advances was 1.40 percent at March 31, 2021 and 1.66 percent at December 31, 2020. The fixed interest rate of our subordinated debt balances was 5.625 percent at March 31, 2021 and December 31, 2020. During the three months ended March 31, 2021, the Company opted to extinguish $68.0 million in FHLB advances which held a weighted average rate of 2.00%. The advances were originally set to mature in 2021 and 2022. The effect of the extinguishment of the debt reduced the weighted average cost of FHLB borrowings by approximately 20 basis points on an annualized basis. The related expense for the extinguishment of this debt is included in noninterest expense.
Stockholders equity increased by $4.3 million, or 1.7 percent, to $253.5 million at March 31, 2021 from $249.2 million at December 31, 2020. The increase was primarily attributable to the increase in retained earnings of $4.4 million, or 7.6 percent, to $62.8 million at March 31, 2021 from $58.4 million at December 31, 2020, related to the net effect of net income less dividends paid for the three months ended March 31, 2021.
First Quarter 2021 Income Statement Review
Net interest income increased by $4.8 million, or 25.5 percent, to $23.6 million for the first quarter of 2021 from $18.8 million for the first quarter of 2020. The increase in net interest income resulted primarily from a $6.1 million decrease in interest expense related to a decrease in the average rate on interest-bearing liabilities of 93 basis points to 0.85 percent for the first quarter of 2021 from 1.78 percent for the first quarter of 2020, as well as a decrease in the average balance of interest-bearing liabilities of $273.5 million, or 11.4 percent, to $2.120 billion for the first quarter of 2021 from $2.393 billion for the first quarter of 2020.
Interest income was $1.3 million lower than the prior year, related to a decrease in the average balance of interest-earning assets of $153.7 million, or 5.4 percent, to $2.705 billion for the first quarter of 2021 from $2.859 billion for the first quarter of 2020. The decrease in the average balance of interest-earning assets was partly offset by an increase in the average yield of interest-earning assets of three basis points to 4.15 percent for the first quarter of 2021 from 4.12 percent for the first quarter of 2020. The decrease in the average balance of interest earning assets mainly relates to a decrease in the Companys level of cash balances for the first quarter of 2021 as compared to the first quarter of 2020, as the average balances of deposits and FHLB advances decreased.
Interest expense decreased by $6.1 million, or 57.6 percent, to $4.5 million for the first quarter of 2021 from $10.6 million for the first quarter of 2020. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 93 basis points to 0.85 percent for the first quarter of 2021 from 1.78 percent for the first quarter of 2020, as well as a decrease in the average balance of interest-bearing liabilities of $273.5 million, or 11.4 percent, to $2.120 billion for the first quarter of 2021 from $2.393 billion for the first quarter of 2020. The decreases in the average cost of funds and the average balance of interest-bearing liabilities primarily resulted from the declining interest rate environment and the Companys strategy of a heightened focus on cost of funds and continued deleveraging.
Net interest margin was 3.48 percent for the first quarter of 2021, compared to 2.63 percent for the first quarter of 2020. The increase in the net interest margin compared to the prior-year period was the result of the volatile financial markets attributable to the COVID-19 pandemic and the low interest rate environment that were more prevalent in the prior period. Management has been proactive in managing its cost of funds and has significantly decreased the average cost of total interest-bearing liabilities, while slightly improving the average yield on interest-earning assets for the first quarter of 2021 compared to the first quarter of 2020. Despite the ongoing pandemic, the Company has been able to increase its average balance of loans receivable for the first quarter of 2021 as compared to the first quarter of 2020. This increase in the average balance of loans receivable, and the corresponding decrease in cash balances, highlight managements efforts to maintain a strong net interest margin.
Non-interest income increased by $1.3 million, or 185.5 percent, to $2.0 million for the first quarter of 2021 from $683,000 for the first quarter of 2020. The increase in total noninterest income was mainly related to higher BOLI income of $701,000, higher fees and service charges of $385,000, a lower unrealized loss on equity securities of $244,000, and a higher gain on the sales of loans of $213,000, partly offset by lower other noninterest income of $276,000. The increase in BOLI income relates to an initial purchase of $60.0 million of BOLI product in the third quarter of 2020, and an additional purchase of $8.5 million in the first quarter of 2021. The higher fees and service charges related primarily to $328,000 of referral fees for PPP loans. The decrease in other noninterest income related to the reversal of $295,000 of liabilities previously recorded for acquired loans that paid off in the prior-year quarter. Unrealized gains or losses on equity securities, and the gain on loan sales, are based on market conditions.
Non-interest expense decreased by $781,000, or 5.4 percent, to $13.6 million for the first quarter of 2021 from $14.4 million for the first quarter of 2020. Salaries and employee benefits expense decreased by $844,000, or 11.4 percent, to $6.5 million for the first quarter of 2021 from $7.4 million for the first quarter of 2020, primarily related to fewer full-time equivalent employees, partly offset by normal compensation increases. The number of full-time equivalent employees for the first quarter of 2021 was 312, as compared with 371 for the same period in 2020. Occupancy and equipment expense increased by $129,000, or 4.6 percent, to $3.0 million for the first quarter of 2021 from $2.8 million for the first quarter of 2020, largely related to building sanitization costs associated with the COVID-19 pandemic, which costs were partly offset by the closure of two of the Companys branch offices in the fourth quarter of 2020.The Company recognized an expense of $540,000 for a loss on extinguishment of debt, related to the prepayment of higher-cost FHLB borrowings, for the first quarter of 2021. Other noninterest expense decreased by $491,000, or 24.8 percent, to $1.5 million for the first quarter of 2021 from $2.0 million for the first quarter of 2020. Other noninterest expense consisted of loan expense, business development, office supplies, correspondent bank fees, telephone and communication and miscellaneous fees and expenses. The decrease in the current period was primarily related to a reduction of business development and loan-related expenses, largely attributable to the current pandemic condition.
The income tax provision increased by $1.9 million, or 173.9 percent, to $2.9 million for the first quarter of 2021 from $1.0 million for the first quarter of 2020. The increase in the income tax provision was a result of higher taxable income for the first quarter of 2021 as compared with that same period for 2020. The consolidated effective tax rate for the first quarter of 2021 was 29.3 percent compared to 29.9 percent for the first quarter of 2020. The lower rate in the current period related primarily to non-taxable BOLI income and lower non-deductible costs in the current year period.
Asset Quality
During the first quarter of 2021, the Company recognized $27,000 in net charge-offs, compared to $300,000 in net recoveries for the first quarter of 2020.
The COVID-19 pandemic has caused disruption to the global economy, but the extent and duration of the disruption is uncertain at this time. Management will continue to monitor any activity for loan deferment requests and delinquencies on a regular basis.
While we experienced some decline in asset quality metrics during 2020, we have since seen a turnaround as non-accrual loans, impaired loans, and classified loans declined as of the end of the current quarter, despite the continued challenges from COVID-19. With respect to chargeoffs, we have been in a net recovery position looking back over the last four quarters, but continue to provide additional loan loss reserves in response to the ongoing business disruption caused by the pandemic, said Coughlin.
The provision for loan losses increased by $400,000, to $1.9 million, for the first quarter of 2021, compared to $1.5 million for the first quarter of 2020; this increase was primarily due to COVID-19 related factors. The Bank had non-accrual loans totaling $14.4 million, or 0.62 percent, of gross loans at March 31, 2021, as compared to $16.4 million, or 0.70 percent, of gross loans at December 31, 2020.
Performing troubled debt restructured (TDR) loans that were not included in nonaccrual loans at March 31, 2021, were $13.5 million, compared to $13.8 million at December 31, 2020. 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 $35.5 million, or 1.52 percent of gross loans at March 31, 2021, and $33.6million, or 1.44 percent of gross loans at December 31, 2020. The allowance for loan losses was 246.3 percent of non-accrual loans at March 31, 2021, and 205.2 percent of non-accrual loans at December 31, 2020.
COVID-19 Response
With the global outbreak of COVID-19, the Company remains focused on protecting the health and well-being of its employees and the communities in which it operates while assuring the continuity of its business operations.
The Company activated its dedicated pandemic team that proactively implemented its business continuity plans and has taken a variety of measures to ensure the ongoing availability of services, while taking health and safety measures, including enhanced cleaning and hygiene protocols in all of its facilities and remote work policies, where possible. To date, as a result of these business continuity measures, the Company has not experienced significant disruptions in its operations.
About BCB Bancorp, Inc.
Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has 29 branch offices in Bayonne, Carteret, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and three branches in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.
Forward-Looking Statements
This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words anticipate, believe, estimate, expect, intend, plan, project, seek, strive, try, or future or conditional verbs such as could, may, should, will, would, or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.
In addition to factors previously disclosed in the Companys 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: 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 the Banks 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.
As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company could be subject to any of the following additional risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:
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 Companys management uses in its analysis of the Companys financial results. The Companys management believes that providing this information to analysts and investors allows them to better understand and evaluate the Companys 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 companys financial condition and, therefore, the Companys management believes that such information is useful to investors.
For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
Statements of Income – Three Months Ended, | |||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2020 | March 31, 2021 vs. December 31, 2020 | March 31, 2021 vs. March 31, 2020 | |||||||||
Interest and dividend income: | (In thousands, except per share amounts) | ||||||||||||
Loans, including fees | $ | 26,863 | $ | 27,090 | $ | 26,814 | -0.8 | % | 0.2 | % | |||
Mortgage-backed securities | 206 | 298 | 563 | -30.9 | % | -63.4 | % | ||||||
Other investment securities | 784 | 743 | 8 | 5.5 | % | 9700.0 | % | ||||||
FHLB stock and other interest earning assets | 222 | 204 | 2,034 | 8.8 | % | -89.1 | % | ||||||
Total interest and dividend income | 28,075 | 28,335 | 29,419 | -0.9 | % | -4.6 | % | ||||||
Interest expense: | |||||||||||||
Deposits: | |||||||||||||
Demand | 1,198 | 1,220 | 2,208 | -1.8 | % | -45.7 | % | ||||||
Savings and club | 118 | 116 | 105 | 1.7 | % | 12.4 | % | ||||||
Certificates of deposit | 1,992 | 2,702 | 6,432 | -26.3 | % | -69.0 | % | ||||||
3,308 | 4,038 | 8,745 | -18.1 | % | -62.2 | % | |||||||
Borrowings | 1,205 | 1,546 | 1,896 | -22.1 | % | -36.4 | % | ||||||
Total interest expense | 4,513 | 5,584 | 10,641 | -19.2 | % | -57.6 | % | ||||||
Net interest income | 23,562 | 22,751 | 18,778 | 3.6 | % | 25.5 | % | ||||||
Provision for loan losses | 1,865 | 1,915 | 1,500 | -2.6 | % | 24.3 | % | ||||||
Net interest income after provision for loan losses | 21,697 | 20,836 | 17,278 | 4.1 | % | 25.6 | % | ||||||
Non-interest income: | |||||||||||||
Fees and service charges | 1,111 | 805 | 726 | 38.0 | % | 53.0 | % | ||||||
Gain on sales of loans | 274 | 600 | 61 | -54.3 | % | 349.2 | % | ||||||
Gain on sale of impaired loans | – | 26 | – | -100.0 | % | 0.0 | % | ||||||
Loss on sales of other real estate owned | – | (38 | ) | – | -100.0 | % | 0.0 | % | |||||
Gain on sale of investment securities | – | 658 | – | -100.0 | % | 0.0 | % | ||||||
BOLI income | 701 | 648 | – | 8.2 | % | 0.0 | % | ||||||
Realized and unrealized (loss) gain on equity investments | (196 | ) | 970 | (440 | ) | -120.2 | % | 55.5 | % | ||||
Other | 60 | 75 | 336 | -20.0 | % | -82.1 | % | ||||||
Total non-interest income | 1,950 | 3,744 | 683 | -47.9 | % | 185.5 | % | ||||||
Non-interest expense: | |||||||||||||
Salaries and employee benefits | 6,545 | 6,460 | 7,389 | 1.3 | % | -11.4 | % | ||||||
Occupancy and equipment | 2,953 | 3,018 | 2,824 | -2.2 | % | 4.6 | % | ||||||
Data processing and service fees | 1,008 | 986 | 938 | 2.2 | % | 7.5 | % | ||||||
Professional fees | 412 | 393 | 470 | 4.8 | % | -12.3 | % | ||||||
Director fees | 247 | 354 | 358 | -30.2 | % | -31.0 | % | ||||||
Regulatory assessment fees | 376 | 461 | 321 | -18.4 | % | 17.1 | % | ||||||
Advertising and promotional | 12 | 22 | 61 | -45.5 | % | -80.3 | % | ||||||
Other real estate owned, net | 4 | 43 | 26 | -90.7 | % | -84.6 | % | ||||||
Loss from extinguishment of debt | 540 | 837 | – | -35.5 | % | 0.0 | % | ||||||
Other | 1,486 | 1,804 | 1,977 | -17.6 | % | -24.8 | % | ||||||
Total non-interest expense | 13,583 | 14,378 | 14,364 | -5.5 | % | -5.4 | % | ||||||
Income before income tax provision | 10,064 | 10,202 | 3,597 | -1.4 | % | 179.8 | % | ||||||
Income tax provision | 2,947 | 2,904 | 1,076 | 1.5 | % | 173.9 | % | ||||||
Net Income | 7,117 | 7,298 | 2,521 | -2.5 | % | 182.3 | % | ||||||
Preferred stock dividends | 283 | 286 | 344 | -1.0 | % | -17.7 | % | ||||||
Net Income available to common stockholders | $ | 6,834 | $ | 7,012 | $ | 2,177 | -2.5 | % | 213.9 | % | |||
Net Income per common share-basic and diluted | |||||||||||||
Basic | $ | 0.40 | $ | 0.41 | $ | 0.12 | -2.4 | % | 233.3 | % | |||
Diluted | $ | 0.40 | $ | 0.41 | $ | 0.12 | -2.4 | % | 233.3 | % | |||
Weighted average number of common shares outstanding | |||||||||||||
Basic | 17,115 | 17,094 | 17,502 | 0.1 | % | -2.2 | % | ||||||
Diluted | 17,232 | 17,104 | 17,551 | 0.7 | % | -1.8 | % | ||||||
Statements of Financial Condition | March 31, 2021 | December 31, 2020 | March 31, 2020 | March 31, 2021 vs. December 31, 2020 | March 31, 2021 vs. March 30, 2020 | ||||||||
ASSETS | (In Thousands, except per share amounts) | ||||||||||||
Cash and amounts due from depository institutions | $ | 24,796 | $ | 23,201 | $ | 24,292 | 6.9 | % | 2.1 | % | |||
Interest-earning deposits | 272,142 | 238,028 | 570,894 | 14.3 | % | -52.3 | % | ||||||
Total cash and cash equivalents | 296,938 | 261,229 | 595,186 | 13.7 | % | -50.1 | % | ||||||
Interest-earning time deposits | 735 | 735 | 735 | – | – | ||||||||
Debt securities available for sale | 93,582 | 99,756 | 95,429 | -6.2 | % | -1.9 | % | ||||||
Equity investments | 18,278 | 17,717 | 1,580 | 3.2 | % | 1056.8 | % | ||||||
Loans held for sale | 1,147 | 3,530 | 838 | -67.5 | % | 36.9 | % | ||||||
Loans receivable, net of allowance for loan losses | |||||||||||||
of $35,477, $33,639, and $25,534 respectively | 2,296,434 | 2,295,021 | 2,164,057 | 0.1 | % | 6.1 | % | ||||||
Federal Home Loan Bank of New York stock, at cost | 8,920 | 11,324 | 14,586 | -21.2 | % | -38.8 | % | ||||||
Premises and equipment, net | 14,796 | 15,272 | 19,292 | -3.1 | % | -23.3 | % | ||||||
Accrued interest receivable | 12,056 | 12,924 | 8,936 | -6.7 | % | 34.9 | % | ||||||
Other real estate owned | 414 | 414 | 1,623 | 0.0 | % | -74.5 | % | ||||||
Deferred income taxes | 13,239 | 12,574 | 10,653 | 5.3 | % | 24.3 | % | ||||||
Goodwill and other intangibles | 5,472 | 5,488 | 5,535 | -0.3 | % | -1.1 | % | ||||||
Operating lease right-of-use asset | 14,328 | 14,988 | 14,084 | -4.4 | % | 1.7 | % | ||||||
Bank-owned life insurance (“BOLI”) | 70,234 | 61,033 | – | 15.1 | % | 0.0 | % | ||||||
Other assets | 5,887 | 9,011 | 9,469 | -34.7 | % | -37.8 | % | ||||||
Total Assets | $ | 2,852,460 | $ | 2,821,016 | $ | 2,942,003 | 1.1 | % | -3.0 | % | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
LIABILITIES | |||||||||||||
Non-interest bearing deposits | $ | 454,061 | $ | 402,100 | $ | 293,174 | 12.9 | % | 54.9 | % | |||
Interest bearing deposits | 1,950,074 | 1,915,950 | 2,082,547 | 1.8 | % | -6.4 | % | ||||||
Total deposits | 2,404,135 | 2,318,050 | 2,375,721 | 3.7 | % | 1.2 | % | ||||||
FHLB advances | 133,298 | 191,161 | 262,800 | -30.3 | % | -49.3 | % | ||||||
Subordinated debentures | 37,101 | 37,042 | 36,868 | 0.2 | % | 0.6 | % | ||||||
Operating lease liability | 14,589 | 15,224 | 14,246 | -4.2 | % | 2.4 | % | ||||||
Other liabilities | 9,883 | 10,328 | 11,730 | -4.3 | % | -15.7 | % | ||||||
Total Liabilities | 2,599,006 | 2,571,805 | 2,701,365 | 1.1 | % | -3.8 | % | ||||||
STOCKHOLDERS’ EQUITY | |||||||||||||
Preferred stock: $0.01 par value, 10,000 shares authorized | – | – | – | – | – | ||||||||
Additional paid-in capital preferred stock | 25,723 | 25,723 | 24,876 | 0.0 | % | 3.4 | % | ||||||
Common stock: no par value, 40,000 shares authorized | – | – | – | – | – | ||||||||
Additional paid-in capital common stock | 192,633 | 192,276 | 190,658 | 0.2 | % | 1.0 | % | ||||||
Retained earnings | 62,777 | 58,335 | 48,168 | 7.6 | % | 30.3 | % | ||||||
Accumulated other comprehensive (loss) income | (349 | ) | (205 | ) | 271 | 70.2 | % | -228.8 | % | ||||
Treasury stock, at cost | (27,330 | ) | (26,918 | ) | (23,335 | ) | 1.5 | % | 17.1 | % | |||
Total Stockholders’ Equity | 253,454 | 249,211 | 240,638 | 1.7 | % | 5.3 | % | ||||||
Total Liabilities and Stockholders’ Equity | $ | 2,852,460 | $ | 2,821,016 | $ | 2,942,003 | 1.1 | % | -3.0 | % | |||
Outstanding common shares | 17,121 | 17,108 | 17,407 | 0.1 | % | -1.6 | % | ||||||
Three Months Ended March 31, | |||||||||||||
2021 | 2020 | ||||||||||||
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 | $ | 2,326,230 | $ | 26,863 | 4.62 | % | $ | 2,185,753 | $ | 26,814 | 4.91 | % | |
Investment Securities | 114,461 | 990 | 3.46 | % | 92,306 | 571 | 2.47 | % | |||||
FHLB stock and Interest-earning assets | 264,308 | 222 | 0.34 | % | 580,623 | 2,034 | 1.40 | % | |||||
Total Interest-earning assets | 2,704,999 | 28,075 | 4.15 | % | 2,858,682 | 29,419 | 4.12 | % | |||||
Non-interest-earning assets | 109,987 | 73,509 | |||||||||||
Total assets | $ | 2,814,986 | $ | 2,932,191 | |||||||||
Interest-bearing liabilities: | |||||||||||||
Interest-bearing demand accounts | $ | 610,893 | $ | 757 | 0.50 | % | $ | 407,339 | $ | 858 | 0.84 | % | |
Money market accounts | 317,151 | 441 | 0.56 | % | 321,233 | 1,350 | 1.68 | % | |||||
Savings accounts | 302,741 | 118 | 0.16 | % | 259,721 | 105 | 0.16 | % | |||||
Certificates of Deposit | 682,975 | 1,992 | 1.17 | % | 1,120,060 | 6,432 | 2.30 | % | |||||
Total interest-bearing deposits | 1,913,760 | 3,308 | 0.69 | % | 2,108,353 | 8,745 | 1.66 | % | |||||
Borrowed funds | 205,956 | 1,205 | 2.34 | % | 284,830 | 1,896 | 2.66 | % | |||||
Total interest-bearing liabilities | 2,119,716 | 4,513 | 0.85 | % | 2,393,183 | 10,641 | 1.78 | % | |||||
Non-interest-bearing liabilities | 444,787 | 299,679 | |||||||||||
Total liabilities | 2,564,503 | 2,692,862 | |||||||||||
Stockholders’ equity | 250,483 | 239,329 | |||||||||||
Total liabilities and stockholders’ equity | $ | 2,814,986 | $ | 2,932,191 | |||||||||
Net interest income | $ | 23,562 | $ | 18,778 | |||||||||
Net interest rate spread(1) | 3.30 | % | 2.34 | % | |||||||||
Net interest margin(2) | 3.48 | % | 2.63 | % | |||||||||
(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 | |||||||||||||||
Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||
(In thousands, except book values) | |||||||||||||||
Total assets | $ | 2,852,460 | $ | 2,821,016 | $ | 2,842,319 | $ | 2,986,876 | $ | 2,942,003 | |||||
Cash and cash equivalents | 296,938 | 261,229 | 160,551 | 412,249 | 595,186 | ||||||||||
Securities | 111,860 | 117,473 | 134,144 | 140,201 | 97,009 | ||||||||||
Loans receivable, net | 2,296,434 | 2,295,021 | 2,391,990 | 2,343,593 | 2,164,057 | ||||||||||
Deposits | 2,404,135 | 2,318,050 | 2,273,338 | 2,442,233 | 2,375,721 | ||||||||||
Borrowings | 170,399 | 228,203 | 296,584 | 279,726 | 299,668 | ||||||||||
Stockholders equity | 253,454 | 249,211 | 242,687 | 241,019 | 240,638 | ||||||||||
Book value per common share1 | $ | 13.30 | $ | 13.06 | $ | 12.83 | $ | 12.49 | $ | 12.40 | |||||
Tangible book value per common share2 | $ | 12.99 | $ | 12.76 | $ | 12.53 | $ | 12.18 | $ | 12.09 | |||||
Operating data by quarter | |||||||||||||||
Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||
(In thousands, except for per share amounts) | |||||||||||||||
Net interest income | $ | 23,562 | $ | 22,751 | $ | 20,890 | $ | 17,991 | $ | 18,778 | |||||
Provision (credit) for loan losses | 1,865 | 1,915 | 2,726 | 3,300 | 1,500 | ||||||||||
Non-interest income | 1,950 | 3,744 | 6,955 | 1,108 | 683 | ||||||||||
Non-interest expense | 13,583 | 14,378 | 13,342 | 11,952 | 14,364 | ||||||||||
Income tax expense | 2,947 | 2,904 | 3,465 | 1,121 | 1,076 | ||||||||||
Net income | $ | 7,117 | $ | 7,298 | $ | 8,312 | $ | 2,726 | $ | 2,521 | |||||
Net income per diluted share | $ | 0.40 | $ | 0.41 | $ | 0.47 | $ | 0.14 | $ | 0.12 | |||||
Common Dividends declared per share | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | |||||
Financial Ratios3 | |||||||||||||||
Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||
Return on average assets | 1.01 | % | 1.03 | % | 1.15 | % | 0.36 | % | 0.34 | % | |||||
Return on average stockholders equity | 11.37 | % | 11.93 | % | 14.06 | % | 4.57 | % | 4.21 | % | |||||
Net interest margin | 3.48 | % | 3.35 | % | 2.98 | % | 2.45 | % | 2.63 | % | |||||
Stockholders equity to total assets | 8.89 | % | 8.83 | % | 8.54 | % | 8.07 | % | 8.18 | % | |||||
Efficiency Ratio4 | 53.24 | % | 54.27 | % | 47.92 | % | 62.58 | % | 73.81 | % | |||||
Asset Quality Ratios | |||||||||||||||
Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||
(In thousands, except for ratio %) | |||||||||||||||
Non-Accrual Loans | $ | 14,405 | $ | 16,396 | $ | 7,151 | $ | 4,495 | $ | 4,362 | |||||
Non-Accrual Loans as a % of Total Loans | 0.62 | % | 0.70 | % | 0.29 | % | 0.19 | % | 0.20 | % | |||||
ALLL as % of Non-Accrual Loans | 246.3 | % | 205.2 | % | 444.1 | % | 641.6 | % | 585.4 | % | |||||
Impaired Loans | 67,344 | 83,201 | 31,318 | 26,839 | 23,022 | ||||||||||
Classified Loans | 56,178 | 68,580 | 18,138 | 13,584 | 9,882 | ||||||||||
(1) Calculated by dividing stockholders’ 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 | |||||||||||||||
Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||
(In thousands) | |||||||||||||||
Residential one-to-four family | $ | 234,375 | $ | 244,369 | $ | 241,796 | $ | 247,471 | $ | 268,137 | |||||
Commercial and multi-family | 1,700,113 | 1,690,836 | 1,677,668 | 1,643,954 | 1,577,816 | ||||||||||
Construction | 167,224 | 155,967 | 134,769 | 111,463 | 101,692 | ||||||||||
Commercial business | 177,340 | 184,357 | 311,204 | 309,284 | 177,146 | ||||||||||
Home equity | 53,360 | 53,667 | 60,973 | 63,481 | 64,857 | ||||||||||
Consumer | 851 | 822 | 770 | 603 | 1,029 | ||||||||||
$ | 2,333,263 | $ | 2,330,018 | $ | 2,427,180 | $ | 2,376,256 | $ | 2,190,677 | ||||||
Less: | |||||||||||||||
Deferred loan fees, net | (1,352 | ) | (1,358 | ) | (3,430 | ) | (3,821 | ) | (1,086 | ) | |||||
Allowance for loan loss | (35,477 | ) | (33,639 | ) | (31,760 | ) | (28,842 | ) | (25,534 | ) | |||||
Total loans, net | $ | 2,296,434 | $ | 2,295,021 | $ | 2,391,990 | $ | 2,343,593 | $ | 2,164,057 | |||||
Non-Accruing Loans in Portfolio by quarter | |||||||||||||||
Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||
(In thousands) | |||||||||||||||
Originated loans: | |||||||||||||||
Residential one-to-four family | $ | 701 | $ | 1,736 | $ | 1,412 | $ | 1,332 | $ | 1,390 | |||||
Commercial and multi-family | 7,962 | 8,721 | 1,436 | 849 | 976 | ||||||||||
Commercial business | 5,307 | 5,383 | 3,630 | 1,642 | 1,702 | ||||||||||
Home equity | 435 | 556 | 673 | 672 | 294 | ||||||||||
Total: | $ | 14,405 | $ | 16,396 | $ | 7,151 | $ | 4,495 | $ | 4,362 | |||||
Reconciliation of GAAP to Non-GAAP Financial Measures by quarter | |||||||||||||||
Tangible Book Value per Share | |||||||||||||||
Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Total Stockholders’ Equity | $ | 253,454 | $ | 249,211 | $ | 242,687 | $ | 241,019 | $ | 240,638 | |||||
Less: goodwill | 5,253 | 5,253 | 5,253 | 5,253 | 5,253 | ||||||||||
Less: preferred stock | 25,723 | 25,723 | 23,481 | 27,956 | 24,876 | ||||||||||
Total tangible common stockholders’ equity | 222,478 | 218,235 | 213,953 | 207,810 | 210,509 | ||||||||||
Shares common shares outstanding | 17,121 | 17,108 | 17,081 | 17,057 | 17,407 | ||||||||||
Book value per common share | $ | 13.30 | $ | 13.06 | $ | 12.83 | $ | 12.49 | $ | 12.40 | |||||
Tangible book value per common share | $ | 12.99 | $ | 12.76 | $ | 12.53 | $ | 12.18 | $ | 12.09 | |||||
Efficiency Ratios | |||||||||||||||
Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||
(In thousands, except for ratio %) | |||||||||||||||
Net interest income | $ | 23,562 | $ | 22,751 | $ | 20,890 | $ | 17,991 | $ | 18,778 | |||||
Non-interest income | 1,950 | 3,744 | 6,955 | 1,108 | 683 | ||||||||||
Total income | 25,512 | 26,495 | 27,845 | 19,099 | 19,461 | ||||||||||
Non-interest expense | 13,583 | 14,378 | 13,342 | 11,952 | 14,364 | ||||||||||
Efficiency Ratio | 53.24 | % | 54.27 | % | 47.92 | % | 62.58 | % | 73.81 | % | |||||
Distribution of Deposits by quarter | ||||||||||
Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | ||||||
(In thousands) | ||||||||||
Demand: | ||||||||||
Non-Interest Bearing | $ | 454,061 | $ | 402,100 | $ | 395,630 | $ | 390,912 | $ | 293,174 |
Interest Bearing | 620,171 | 613,882 | 504,863 | 472,064 | 428,683 | |||||
Money Market | 335,440 | 315,208 | 311,074 | 319,113 | 321,973 | |||||
Sub-total: | $ | 1,409,672 | $ | 1,331,190 | $ | 1,211,567 | $ | 1,182,089 | $ | 1,043,830 |
Savings and Club | 311,259 | 297,765 | 287,513 | 275,567 | 260,291 | |||||
Certificates of Deposit | 683,204 | 689,095 | 774,258 | 984,577 | 1,071,600 | |||||
Total Deposits: | $ | 2,404,135 | $ | 2,318,050 | $ | 2,273,338 | $ | 2,442,233 | $ | 2,375,721 |
Contact: | Thomas Coughlin, |
President & CEO | |
Thomas Keating, CFO | |
(201) 823-0700 |
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