Bay Street News

BCB Bancorp, Inc. Earns $2.8 Million in Second Quarter 2024; Reports $0.14 EPS and Declares Quarterly Cash Dividend of $0.16 Per Share

BAYONNE, N.J., July 19, 2024 (GLOBE NEWSWIRE) — BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $2.8 million for the second quarter of 2024, compared to $5.9 million in the first quarter of 2024, and $8.6 million for the second quarter of 2023. Earnings per diluted share for the second quarter of 2024 were $0.14, compared to $0.32 in the preceding quarter and $0.50 in the second quarter of 2023.

During the second quarter, the Bank agreed to sell a pool of its commercial real estate and multifamily loans with a total balance of $38.4 million as of June 30, 2024. The Bank expects to consummate the loan sale during the third quarter. As a result, the Bank recorded a pre-tax loss of $4.6 million as the loans were moved to held for sale from the held for investment category. Additionally, during the second quarter, the Bank sold a non-performing loan that resulted in a pre-tax loss of $288 thousand, and recorded unrealized losses of $222 thousand on its equity securities. Without giving effect to the aforementioned transactions and the unrealized losses on equity securities, the Company’s second quarter net income and earnings per diluted share were $6.4 million and $0.35, respectively.

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 on August 16, 2024 to common shareholders of record on August 2, 2024.

“At BCB Community Bank, we remain disciplined and committed to executing our Strategic Plan that will continue to strengthen our balance sheet by enhancing our liquidity and capital positions while also delivering consistent and improving profitability. The Bank was able to enter into an agreement to sell a small portfolio of loans at an attractive price that added liquidity without diluting the Bank’s capital ratios. We are prepared and remain well-positioned to navigate through the current economic environment,” stated Michael Shriner, President and Chief Executive Officer.

Executive Summary

Balance Sheet Review

Total assets decreased by $38.5 million, or 1.0 percent, to $3.794 billion at June 30, 2024, from $3.832 billion at December 31, 2023. The decrease in total assets was mainly related to a decrease in loans, offset, somewhat, by an increase in cash and cash equivalents.

Total cash and cash equivalents increased by $47.3 million, or 16.9 percent, to $326.9 million at June 30, 2024, from $279.5 million at December 31, 2023. The increase was primarily cash flows from loan payoffs/paydowns that were not redeployed.

Loans receivable, net, decreased by $117.8 million, or 3.6 percent, to $3.162 billion at June 30, 2024, from $3.280 billion at December 31, 2023. Total loan decreases during the period included decreases of $93.7 million in commercial real estate and multi-family loans and $19. 6 million in construction loans. 1-4 family residential loans also declined $5.6 million for the same period. Offsetting this was an increase in commercial business loans of $3.2 million. The allowance for credit losses increased $1.6 million to $35.2 million, or 108.6 percent of non-accruing loans and 1.10 percent of gross loans, at June 30, 2024, as compared to an allowance for credit losses of $33.6 million, or 178.9 percent of non-accruing loans and 1.01 percent of gross loans, at December 31, 2023.

Total investment securities decreased by $1.9 million, or 2.0 percent, to $95.0 million at June 30, 2024, from $96.9 million at December 31, 2023, representing unrealized losses, calls, maturities and repayments.

Deposits decreased by $43.8 million, or 1.5 percent, to $2.935 billion at June 30, 2024, from $2.979 billion at December 31, 2023. Interest bearing demand, savings and club accounts, money market accounts and non-interest-bearing accounts declined by $53.0 million, offset by a $9.1 million increase in certificates of deposit.

Debt obligations increased by $275 thousand to $510.7 million at June 30, 2024 from $510.4 million at December 31, 2023. The weighted average interest rate of FHLB advances was 4.21 percent at June 30, 2024 and 4.21 percent at December 31, 2023. The weighted average maturity of FHLB advances as of June 30, 2024 was 1.44 years. The interest rate of the Company’s subordinated debt balances was 8.31 percent at June 30, 2024 and 8.36 percent at December 31, 2023.

Stockholders’ equity increased by $6.7 million, or 2.1 percent, to $320.7 million at June 30, 2024, from $314.1 million at December 31, 2023. The increase was attributable to an increase in the additional paid in capital attributable to its preferred stock of $3.4 million, or 13.4 percent, to $28.4 million at June 30, 2024, and an increase in retained earnings of $2.4 million, or 1.8 percent, to $138.3 million at June 30, 2024 from $135.9 million at December 31, 2023. The increase in its preferred stock paid in capital was due to the issuance of 336 shares of its Series J Noncumulative Perpetual Preferred Stock during the six-month period.

Second Quarter 2024 Income Statement Review

Net income was $2.8 million for the quarter ended June 30, 2024 and $8.6 million for the quarter ended June 30, 2023. The decline was primarily driven by a $4.9 million loss on the sale of loans in the second quarter of 2024 and lower net interest income, which decreased $3.4 million in the second quarter of 2024 as compared with the second quarter of 2023. This was offset, somewhat, by a lower tax provision of $2.3 million and a decrease in non-interest expense of $719 thousand.

Net interest income decreased by $3.4 million, or 12.4 percent, to $23.6 million for the second quarter of 2024, from $27.0 million for the second quarter of 2023. The decrease in net interest income resulted from higher interest expense which was partially offset by higher interest income.

Interest income increased by $2.2 million, or 4.7 percent, to $49.4 million for the second quarter of 2024 from $47.2 million for the second quarter of 2023. The average balance of interest-earning assets decreased $55.4 million, or 1.5 percent, to $3.639 billion for the second quarter of 2024 from $3.695 billion for the second quarter of 2023, while the average yield increased 32 basis points to 5.43 percent for the second quarter of 2024 from 5.11 percent for the second quarter of 2023.

Interest expense increased by $5.6 million to $25.8 million for the second quarter of 2024 from $20.2 million for the second quarter of 2023. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 76 basis points to 3.56 percent for the second quarter of 2024 from 2.80 percent for the second quarter of 2023, while the average balance of interest-bearing liabilities increased by $6.03 million to $2.897 billion for the second quarter of 2024 from $2.891 billion for the second quarter of 2023.

The net interest margin was 2.60 percent for the second quarter of 2024 compared to 2.92 percent for the second quarter of 2023. The decrease in the net interest margin compared to the second quarter of 2023 was the result of the increase in the cost of interest-bearing liabilities partially offset by the increase in the yield on interest-earning assets.

During the second quarter of 2024, the Company recognized $1.8 million in net charge-offs compared to $27 thousand in net charge offs for the second quarter of 2023. The Bank had non-accrual loans totaling $32.4 million, or 1.01 percent of gross loans, at June 30, 2024 as compared to $18.8 million, or 0.57 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was $35.2 million, or 1.10 percent of gross loans, at June 30, 2024, and $33.6 million, or 1.01 percent of gross loans, at December 31, 2023. The provision for credit losses was $2.4 million for the second quarter of 2024 compared to $1.9 million for the fourth quarter of 2023. Management believes that the allowance for credit losses on loans was adequate at June 30, 2024 and December 31, 2023.

Non-interest income decreased by $4.4 million to a net loss of $3.2 million for the second quarter of 2024 from a net gain of $1.1 million in the second quarter of 2023. The decrease in total non-interest income was mainly related to the aforementioned $4.9 million loss on the sale of loans.

Non-interest expense decreased by $719 thousand, or 4.9 percent, to $14.0 million for the second quarter of 2024 from $14.7 million for the second quarter of 2023. The decrease in these expenses for the second quarter of 2024 was primarily driven by a lesser amount of salaries and employee benefits expense, which declined $719 thousand.

The income tax provision decreased by $2.3 million, or 66.3 percent, to $1.2 million for the second quarter of 2024 from $3.4 million for the second quarter of 2023. The consolidated effective tax rate was 29.2 percent for the second quarter of 2024 compared to 28.6 percent for the second quarter of 2023.

Year-to-Date Income Statement Review

Net income decreased by $8.0 million, or 48.0 percent, to $8.7 million for the first six months of 2024 from $16.7 million for the first six months of 2023. The decrease in net income was driven, primarily, by lower net interest income of $7.7 million, or 14.1 percent.   

Net interest income decreased by $7.7 million, or 14.1 percent, to $46.8 million for the first six months of 2024 from $54.5 million for the first six months of 2023. The decrease in net interest income resulted from an increase in interest expense of $16.8 million, partly offset by an increase in interest income of $9.1 million.

Interest income increased by $9.1 million, or 10.2 percent, to $98.7 million for the first six months of 2024, from $89.6 million for the first six months of 2023. The average balance of interest-earning assets increased $79.7 million, or 2.2 percent, to $3.669 billion for the first six months of 2024, from $3.590 billion for the first six months of 2023, while the average yield increased 39 basis points to 5.38 percent from 4.99 percent for the same comparable period. The increase in the average balance of interest-earning assets mainly related to an increase in the Company’s level of average interest- bearing bank balances and loans receivable for the first six months of 2024, as compared to the same period in 2023.

Interest expense increased by $16.8 million, or 47.9 percent, to $51.9 million for 2024, from $35.1 million for 2023. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 102 basis points to 3.55 percent for the first six months of 2024, from 2.53 percent for the first six months of 2023, and an increase in the average balance of interest-bearing liabilities of $150.6 million, or 5.4 percent, to $2.927 billion from $2.777 billion over the same period. The increase in the average cost of funds primarily resulted from the higher interest rate environment in the first six months of 2024 compared to the same period in 2023.

Net interest margin was 2.55 percent for the first six months of 2024, compared to 3.03 percent for the first six months of 2023. The decrease in the net interest margin compared to the prior period was the result of an increase in the cost of the Bank’s interest-bearing liabilities.

During the first six months of 2024, the Company experienced $2.9 million in net charge offs compared to $25 thousand in net recoveries for the same period in 2023. The provision for credit losses was $4.5 million for the first six months of 2024 compared to $2.0 million for the same period in 2023.

Non-interest income decreased by $579 thousand to a loss of $1.1 million for the first six months of 2024 from a loss of $546 thousand for the first six months of 2023. Losses on sale of loans increased $4.8 million which was offset by an increase in realized and unrealized gains and losses on equity securities of $3.8 million, and an increase in BOLI income of $658 thousand. The realized and unrealized gains or losses on equity investments are based on market conditions.

Non-interest expense increased by $265 thousand, or 0.9 percent, to $28.8 million for the first six months of 2024 from $28.6 million for the same period in 2023. The increase in operating expenses for 2024 was driven primarily by increases in the off-balance sheet reserves of $921 thousand and $763 thousand in regulatory assessments. This was offset by the Bank recording $1.4 million less in salaries and employee benefits.

The income tax provision decreased by $3.0 million or 45.7 percent, to $3.6 million for the first six months of 2024 from $6.7 million for the same period in 2023. The decrease in the income tax provision was a result of the lower taxable income for the six months ended June 30, 2024 compared to the same period in 2023. The consolidated effective tax rate was 29.4 percent for the first six months of 2024 compared to 28.5 percent for the first six months of 2023.

Asset Quality

During the second quarter of 2024, the Company recognized $1.8 million in net charge offs, compared to $27 thousand in net charge offs for the second quarter of 2023.

The Bank had non-accrual loans totaling $32.4 million, or 1.01 percent of gross loans, at June 30, 2024, as compared to $5.7 million, or 0.17 percent of gross loans, at June 30, 2023. The allowance for credit losses was $35.2 million, or 1.10 percent of gross loans, at June 30, 2024, and $30.2 million, or 0.90 percent of gross loans, at June 30, 2023. The allowance for credit losses was 108.6 percent of non-accrual loans at June 30, 2024, and 530.3 percent of non-accrual loans at June 30, 2023.

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 twenty-three branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branch offices 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.

The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity and capital in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the Federal Reserve. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability to effectively attract and deploy deposits; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levels and slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios; the credit risk associated with our loan portfolio; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in our ability to access cost-effective funding; deposit flows; legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, rates and regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in the securities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to retain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatory requirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere in this report, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, and our other periodic reports that we file with the SEC.

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.

Contact: Michael Shriner,
President & CEO
Jawad Chaudhry,
EVP & CFO
(201) 823-0700
   
  Statements of Income – Three Months Ended,      
  June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 vs.
Mar 31, 2024
  June 30, 2024 vs.
June 30, 2023
Interest and dividend income: (In thousands, except per share amounts, Unaudited)      
Loans, including fees $ 44,036   $ 43,722 $ 42,644   0.7 %   3.3 %
Mortgage-backed securities   297     305   184   -2.6 %   61.4 %
Other investment securities   1,006     975   1,070   3.2 %   -6.0 %
FHLB stock and other interest-earning assets   4,106     4,283   3,339   -4.1 %   23.0 %
Total interest and dividend income   49,445     49,285   47,237   0.3 %   4.7 %
             
Interest expense:            
Deposits:            
Demand   5,349     5,257   4,190   1.8 %   27.7 %
Savings and club   152     166   143   -8.4 %   6.3 %
Certificates of deposit   14,571     14,983   8,474   -2.7 %   71.9 %
    20,072     20,406   12,807   -1.6 %   56.7 %
Borrowings   5,734     5,736   7,441   -0.0 %   -22.9 %
Total interest expense   25,806     26,142   20,248   -1.3 %   27.4 %
             
Net interest income   23,639     23,143   26,989   2.1 %   -12.4 %
Provision for credit losses   2,438     2,088   1,350   16.8 %   80.6 %
             
Net interest income after provision for credit losses   21,201     21,055   25,639   0.7 %   -17.3 %
             
Non-interest (loss) income :            
Fees and service charges   1,119     1,215   1,442   -7.9 %   -22.4 %
(Loss) gain on sales of loans   (4,563 )   45          
Loss on sale of impaired loans   (288 )            
Realized and unrealized (loss) gain on equity investments   (222 )   130   (669 ) -270.8 %   -66.8 %
Bank-owned life insurance (“BOLI”) income   671     675   267   -0.6 %   151.3 %
Other   49     44   78   11.4 %   -37.2 %
Total non-interest (loss) income   (3,234 )   2,109   1,118   -253.3 %   -389.3 %
             
Non-interest expense:            
Salaries and employee benefits   6,992     6,981   7,711   0.2 %   -9.3 %
Occupancy and equipment   2,529     2,644   2,560   -4.3 %   -1.2 %
Data processing and communications   1,672     1,853   1,795   -9.8 %   -6.9 %
Professional fees   604     595   622   1.5 %   -2.9 %
Director fees   254     277   270   -8.3 %   -5.9 %
Regulatory assessment fees   953     1,142   796   -16.5 %   19.7 %
Advertising and promotions   253     216   350   17.1 %   -27.7 %
Other real estate owned, net         1       -100.0 %
Other   730     1,130   601   -35.4 %   21.5 %
Total non-interest expense   13,987     14,838   14,706   -5.7 %   -4.9 %
             
Income before income tax provision   3,980     8,326   12,051   -52.2 %   -67.0 %
Income tax provision   1,163     2,460   3,447   -52.7 %   -66.3 %
             
Net Income   2,817     5,866   8,604   -52.0 %   -67.3 %
Preferred stock dividends   448     434   174   3.2 %   157.3 %
Net Income available to common stockholders $ 2,369   $ 5,432 $ 8,430   -56.4 %   -71.9 %
             
Net Income per common share-basic and diluted            
Basic $ 0.14   $ 0.32 $ 0.50   -56.6 %   -72.2 %
Diluted $ 0.14   $ 0.32 $ 0.50   -56.5 %   -72.2 %
             
Weighted average number of common shares outstanding            
Basic   17,005     16,930   16,824   0.4 %   1.1 %
Diluted   17,005     16,939   16,831   0.4 %   1.0 %
             
  Statements of Income – Six Months Ended,  
  June 30, 2024 June 30, 2023 June 30, 2024 vs. June 30, 2023
Interest and dividend income: (In thousands, except per share amounts, Unaudited)  
Loans, including fees $ 87,758   $ 81,533   7.6 %
Mortgage-backed securities   602     370   62.7 %
Other investment securities   1,981     2,190   -9.5 %
FHLB stock and other interest-earning assets   8,389     5,496   52.6 %
Total interest and dividend income   98,730     89,589   10.2 %
       
Interest expense:      
Deposits:      
Demand   10,606     7,344   44.4 %
Savings and club   318     261   21.8 %
Certificates of deposit   29,554     14,927   98.0 %
    40,478     22,532   79.6 %
Borrowings   11,470     12,597   -8.9 %
Total interest expense   51,948     35,129   47.9 %
       
Net interest income   46,782     54,460   -14.1 %
  Provision for credit losses   4,526     1,972   129.5 %
       
Net interest income after provision for credit losses   42,256     52,488   -19.5 %
       
Non-interest (loss) income:      
Fees and service charges   2,334     2,540   -8.1 %
(Loss) gain on sales of loans   (4,518 )   6    
Loss on sale of impaired loans   (288 )      
Realized and unrealized loss on equity investments   (92 )   (3,896 ) -97.6 %
Bank-owned life insurance (“BOLI”) income   1,346     688   95.6 %
Other   93     116   -19.8 %
Total non-interest loss   (1,125 )   (546 ) 106.0 %
       
Non-interest expense:      
Salaries and employee benefits   13,973     15,329   -8.8 %
Occupancy and equipment   5,173     5,112   1.2 %
Data processing and communications   3,525     3,460   1.9 %
Professional fees   1,199     1,188   0.9 %
Director fees   531     535   -0.7 %
Regulatory assessments   2,095     1,332   57.3 %
Advertising and promotions   469     628   -25.3 %
Other real estate owned, net       2   -100.0 %
Other   1,860     974   91.0 %
Total non-interest expense   28,825     28,560   0.9 %
       
Income before income tax provision   12,306     23,382   -47.4 %
Income tax provision   3,623     6,672   -45.7 %
       
Net Income   8,683     16,710   -48.0 %
Preferred stock dividends   882     347   154.2 %
Net Income available to common stockholders $ 7,801   $ 16,363   -52.3 %
       
Net Income per common share-basic and diluted      
Basic $ 0.46   $ 0.97   -52.6 %
Diluted $ 0.46   $ 0.96   -52.6 %
       
Weighted average number of common shares outstanding      
Basic   16,968     16,886   0.5 %
Diluted   17,102     17,010   0.5 %
       
Statements of Financial Condition June 30, 2024 March 31, 2024 December 31, 2023 June 30, 2024 vs.
March 31, 2024
June 30, 2024 vs. December 31,2023
ASSETS (In Thousands, Unaudited)    
Cash and amounts due from depository institutions $ 11,146   $ 11,795   $ 16,597   -5.5 % -32.8 %
Interest-earning deposits   315,724     340,653     262,926   -7.3 % 20.1 %
Total cash and cash equivalents   326,870     352,448     279,523   -7.3 % 16.9 %
           
Interest-earning time deposits   735     735     735      
Debt securities available for sale   85,964     86,966     87,769   -1.2 % -2.1 %
Equity investments   9,001     9,223     9,093   -2.4 % -1.0 %
Loans held for sale   35,187         1,287     2634.0 %
Loans receivable, net of allowance for credit losses          
of $35, 243, $34,563 and $33,608 , respectively   3,161,925     3,226,877     3,279,708   -2.0 % -3.6 %
Federal Home Loan Bank of New York (“FHLB”) stock, at cost   25,001     24,917     24,917   0.3 % 0.3 %
Premises and equipment, net   12,346     12,744     13,057   -3.1 % -5.4 %
Accrued interest receivable   16,576     17,442     16,072   -5.0 % 3.1 %
Deferred income taxes   17,227     17,555     18,213   -1.9 % -5.4 %
Goodwill and other intangibles   5,253     5,253     5,253   0.0 % 0.0 %
Operating lease right-of-use asset   13,556     12,186     12,935   11.2 % 4.8 %
Bank-owned life insurance (“BOLI”)   74,752     74,081     73,407   0.9 % 1.8 %
Other assets   9,548     8,768     10,428   8.9 % -8.4 %
    Total Assets $ 3,793,941   $ 3,849,195   $ 3,832,397   -1.4 % -1.0 %
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
LIABILITIES          
Non-interest bearing deposits $ 523,816   $ 531,112   $ 536,264   -1.4 % -2.3 %
Interest bearing deposits   2,411,423     2,460,547     2,442,816   -2.0 % -1.3 %
Total deposits   2,935,239     2,991,659     2,979,080   -1.9 % -1.5 %
FHLB advances   473,086     472,949     472,811   0.0 % 0.1 %
Subordinated debentures   37,624     37,624     37,624   0.0 % 0.0 %
Operating lease liability   13,973     12,579     13,315   11.1 % 4.9 %
Other liabilities   13,287     14,253     15,512   -6.8 % -14.3 %
    Total Liabilities   3,473,209     3,529,064     3,518,342   -1.6 % -1.3 %
           
STOCKHOLDERS’ EQUITY          
Preferred stock: $0.01 par value, 10,000 shares authorized                
Additional paid-in capital preferred stock   28,403     27,733     25,043   2.4 % 13.4 %
Common stock: no par value, 40,000 shares authorized             0.0 % 0.0 %
Additional paid-in capital common stock   200,162     199,726     198,923   0.2 % 0.6 %
Retained earnings   138,309     138,643     135,927   -0.2 % 1.8 %
Accumulated other comprehensive loss   (7,795 )   (7,624 )   (7,491 ) 2.2 % 4.1 %
Treasury stock, at cost   (38,347 )   (38,347 )   (38,347 ) 0.0 % 0.0 %
    Total Stockholders’ Equity   320,732     320,131     314,055   0.2 % 2.1 %
           
     Total Liabilities and Stockholders’ Equity $ 3,793,941   $ 3,849,195   $ 3,832,397   -1.4 % -1.0 %
           
Outstanding common shares   17,029     16,957     16,904      
           
  Three Months Ended June 30,
    2024       2023  
  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) $ 3,246,612 $ 44,036 5.43 %   $ 3,315,120   $ 42,644 5.15 %
Investment Securities   95,241   1,303 5.47 %     100,971     1,254 4.97 %
FHLB stock and other interest-earning assets   297,574   4,106 5.52 %     278,746     3,339 4.79 %
Total Interest-earning assets   3,639,428   49,445 5.43 %     3,694,837     47,237 5.11 %
Non-interest-earning assets   123,550         125,032      
Total assets $ 3,762,978       $ 3,819,869      
Interest-bearing liabilities:              
Interest-bearing demand accounts $ 546,391 $ 2,279 1.67 %   $ 712,414   $ 2,209 1.24 %
Money market accounts   370,204   3,070 3.32 %     331,339     1,981 2.39 %
Savings accounts   267,919   152 0.23 %     312,201     143 0.18 %
Certificates of Deposit   1,202,306   14,571 4.85 %     904,766     8,474 3.75 %
Total interest-bearing deposits   2,386,819   20,072 3.36 %     2,260,721     12,807 2.27 %
Borrowed funds   510,634   5,734 4.49 %     630,706     7,441 4.72 %
Total interest-bearing liabilities   2,897,452   25,806 3.56 %     2,891,427     20,248 2.80 %
Non-interest-bearing liabilities   545,269         630,928      
Total liabilities   3,442,721         3,522,355      
Stockholders’ equity   320,257         297,514      
Total liabilities and stockholders’ equity $ 3,762,978       $ 3,819,869      
Net interest income   $ 23,639       $ 26,989  
Net interest rate spread(1)     1.87 %       2.31 %
Net interest margin(2)     2.60 %       2.92 %
               
(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 credit losses.
(5) Includes non-accrual loans.
 
  Six Months Ended June 30,
    2024       2023  
  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) $ 3,273,200   $ 87,758 5.36 %   $ 3,240,812 $ 81,533 5.03 %
Investment Securities   95,747     2,583 5.40 %     104,898   2,560 4.88 %
FHLB stock and other interest-earning assets   300,433     8,389 5.58 %     243,987   5,496 4.51 %
Total Interest-earning assets   3,669,380     98,730 5.38 %     3,589,697   89,589 4.99 %
Non-interest-earning assets   124,477           120,965    
Total assets $ 3,793,857         $ 3,710,663    
Interest-bearing liabilities:              
Interest-bearing demand accounts $ 553,290   $ 4,509 1.63 %   $ 713,097 $ 3,998 1.12 %
Money market accounts   369,650     6,097 3.30 %     322,930   3,346 2.07 %
Savings accounts   272,825     318 0.23 %     317,451   261 0.16 %
Certificates of Deposit   1,221,056     29,554 4.84 %     876,762   14,927 3.40 %
Total interest-bearing deposits   2,416,821     40,478 3.35 %     2,230,241   22,532 2.02 %
Borrowed funds   510,569     11,470 4.49 %     546,528   12,597 4.61 %
Total interest-bearing liabilities   2,927,390     51,948 3.55 %     2,776,769   35,129 2.53 %
Non-interest-bearing liabilities   548,985           638,406    
Total liabilities   3,476,375           3,415,175    
Stockholders’ equity   317,482           295,488    
Total liabilities and stockholders’ equity $ 3,793,857         $ 3,710,663    
Net interest income   $ 46,782       $ 54,460  
Net interest rate spread(1)     1.83 %       2.46 %
Net interest margin(2)     2.55 %       3.03 %
               
(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 credit losses.
(5) Includes non-accrual loans.
 
  Financial Condition data by quarter
  Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
           
  (In thousands, except book values)
Total assets $ 3,793,941   $ 3,849,195   $ 3,832,397   $ 3,812,120   $ 3,872,853  
Cash and cash equivalents   326,870     352,448     279,523     251,916     273,212  
Securities   94,965     96,189     96,862     94,444     100,473  
Loans receivable, net   3,161,925     3,226,877     3,279,708     3,285,727     3,319,721  
Deposits   2,935,239     2,991,659     2,979,080     2,819,556     2,885,721  
Borrowings   510,710     510,573     510,435     660,298     660,160  
Stockholders’ equity   320,732     320,131     314,055     303,636     299,623  
Book value per common share1 $ 17.17   $ 17.24   $ 17.10   $ 16.79   $ 16.60  
Tangible book value per common share2 $ 16.86   $ 16.93   $ 16.79   $ 16.48   $ 16.28  
           
  Operating data by quarter
  Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
  (In thousands, except for per share amounts)
Net interest income $ 23,639   $ 23,143   $ 23,922   $ 25,680   $ 26,989  
Provision for credit losses   2,438     2,088     1,927     2,205     1,350  
Non-interest (loss) income   (3,234 )   2,109     3,228     1,406     1,118  
Non-interest expense   13,987     14,838     16,568     15,463     14,706  
Income tax expense   1,163     2,460     2,593     2,707     3,447  
Net income $ 2,817   $ 5,866   $ 6,062   $ 6,711   $ 8,604  
Net income per diluted share $ 0.14   $ 0.32   $ 0.35   $ 0.39   $ 0.50  
Common Dividends declared per share $ 0.16   $ 0.16   $ 0.16   $ 0.16   $ 0.16  
           
  Financial Ratios(3)
  Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
Return on average assets   0.30 %   0.61 %   0.63 %   0.70 %   0.90 %
Return on average stockholders’ equity   3.52 %   7.46 %   7.91 %   8.92 %   11.57 %
Net interest margin   2.60 %   2.50 %   2.57 %   2.78 %   2.92 %
Stockholders’ equity to total assets   8.45 %   8.32 %   8.19 %   7.97 %   7.74 %
Efficiency Ratio4   68.55 %   58.76 %   61.02 %   57.09 %   52.32 %
           
  Asset Quality Ratios
  Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
  (In thousands, except for ratio %)
Non-Accrual Loans $ 32,448   $ 22,241   $ 18,783   $ 7,931   $ 5,696  
Non-Accrual Loans as a % of Total Loans   1.01 %   0.68 %   0.57 %   0.24 %   0.17 %
ACL as % of Non-Accrual Loans   108.6 %   155.4 %   178.9 %   402.4 %   530.3 %
Individually Analyzed Loans   60,798     65,731     54,019     35,868     28,250  
Classified Loans   87,033     97,739     85,727     42,807     28,250  
           
(1) Calculated by dividing stockholders’ equity, less preferred equity, to shares outstanding.    
(2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’
common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”
(3) Ratios are presented on an annualized basis, where appropriate.      
(4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income
 and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”  
           
  Recorded Investment in Loans Receivable by quarter
  Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
  (In thousands)
Residential one-to-four family $ 242,706   $ 244,762   $ 248,295   $ 251,845   $ 250,345  
Commercial and multi-family   2,340,385     2,392,970     2,434,115     2,444,887     2,490,883  
Construction   173,207     180,975     192,816     185,202     179,156  
Commercial business   375,355     378,073     372,202     370,512     368,948  
Home equity   66,843     65,518     66,331     66,046     61,595  
Consumer   2,053     2,847     3,643     3,647     3,994  
  $ 3,200,549   $ 3,265,145   $ 3,317,402   $ 3,322,139   $ 3,354,921  
Less:          
Deferred loan fees, net   (3,381 )   (3,705 )   (4,086 )   (4,498 )   (4,995 )
Allowance for credit losses   (35,243 )   (34,563 )   (33,608 )   (31,914 )   (30,205 )
           
Total loans, net $ 3,161,925   $ 3,226,877   $ 3,279,708   $ 3,285,727   $ 3,319,721  
           
  Non-Accruing Loans in Portfolio by quarter
  Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
  (In thousands)
Residential one-to-four family $ 350   $ 429   $ 270   $ 178   $ 178  
Commercial and multi-family   27,796     12,627     8,684     3,267      
Construction   586     3,225     4,292     2,886     4,145  
Commercial business   3,673     5,916     5,491     1,600     1,373  
Home equity   43     44     46          
Total: $ 32,448   $ 22,241   $ 18,783   $ 7,931   $ 5,696  
           
  Distribution of Deposits by quarter
  Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
  (In thousands)
Demand:          
Non-Interest Bearing $ 523,816   $ 531,112   $ 536,264   $ 523,912   $ 620,509  
Interest Bearing   549,239     552,295     564,912     574,577     714,420  
Money Market   371,689     361,791     370,934     348,732     328,543  
Sub-total: $ 1,444,744   $ 1,445,198   $ 1,472,110   $ 1,447,221   $ 1,663,472  
Savings and Club   258,680     272,051     284,273     293,962     307,435  
Certificates of Deposit   1,231,815     1,274,410     1,222,697     1,078,373     914,814  
Total Deposits: $ 2,935,239   $ 2,991,659   $ 2,979,080   $ 2,819,556   $ 2,885,721  
           
  Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
           
  Tangible Book Value per Share
  Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
  (In thousands, except per share amounts)
Total Stockholders’ Equity $ 320,732   $ 320,131   $ 314,055   $ 303,636   $ 299,623  
Less: goodwill   5,253     5,253     5,253     5,253     5,253  
Less: preferred stock   28,403     27,733     25,043     20,783     21,003  
Total tangible common stockholders’ equity   287,076     287,145     283,759     277,601     273,368  
Shares common shares outstanding   17,029     16,957     16,904     16,848     16,788  
Book value per common share $ 17.17   $ 17.24   $ 17.10   $ 16.79   $ 16.60  
Tangible book value per common share $ 16.86   $ 16.93   $ 16.79   $ 16.48   $ 16.28  
           
  Efficiency Ratios
  Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
  (In thousands, except for ratio %)
Net interest income $ 23,639   $ 23,143   $ 23,922   $ 25,680   $ 26,989  
Non-interest (loss) income   (3,234 )   2,109     3,228     1,406     1,118  
Total income   20,405     25,252     27,150     27,086     28,107  
Non-interest expense   13,987     14,838     16,568     15,463     14,706  
Efficiency Ratio   68.55 %   58.76 %   61.02 %   57.09 %   52.32 %
           


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