BCB Bancorp, Inc. Earns Record Net Income of $21.0 Million in 2019

BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported that net income increased 25.5 percent, to $21.0 million for the year ended December 31, 2019 from $16.7 million for 2018. Earnings per diluted share for 2019 were $1.20 as compared to $1.01 in 2018. In the fourth quarter of 2019, the Company earned $5.1 million, compared with $5.2 million in both the fourth quarter of 2018, and the third quarter of 2019. Earnings per diluted share were $0.29 in the fourth quarter of 2019, compared to $0.31 per diluted share in the fourth quarter of 2018, and $0.30 per diluted share in the preceding quarter.

“We had another strong year delivering record earnings for 2019, producing top-line revenue growth while improving operating efficiencies,” stated Thomas Coughlin, President and Chief Executive Officer.  “Our strategy is now centered on repositioning the balance sheet by focusing on generating solid lower-cost deposits, reducing our reliance on higher cost funding sources, and effective utilization of our cash position. In the coming year, we will remain focused on disciplined balance sheet growth, while delivering consistent operating results to our shareholders.”

Executive Summary

• Net income of $5.1 million in the fourth quarter of 2019 compared to $5.2 million in the fourth quarter a year ago.
• Earnings per diluted share were $0.29 in 4Q19, compared to $0.31 in 4Q18.
• Net interest margin was 3.07 percent for the full year 2019, compared to 3.31 percent for the full year 2018, and 2.88 percent for the fourth quarter 2019, compared to 3.24 percent for the fourth quarter 2018. These decreases were the result of management’s focus on increasing its cash position to allow for paydowns of borrowings and higher cost CDs.
• Total assets increased 8.7 percent to $2.907 billion at December 31, 2019 from $2.675 billion a year earlier.
• Loans receivable, net decreased by 4.4 percent, to $2.178 billion at December 31, 2019 from $2.278 billion a year earlier, as the Company’s focus remains on repositioning the balance sheet.
• Allowance for loan losses as a percentage of non-accrual loans was 570.5 percent at December 31, 2019, compared to 309.6 percent at December 31, 2018.
• Total deposits increased 8.3 percent, to $2.362 billion at December 31, 2019 from $2.181 billion 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 February 21, 2020, to common shareholders of record on February 7, 2020. 
• On December 30, 2019, the Company completed the sale of 1,020,408 shares of common stock, at an issuance price of $12.25 per share.
• 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 $232.7 million, or 8.7 percent, to $2.907 billion at December 31, 2019 from $2.675 billion at December 31, 2018, and increased by $82.0 million, or 2.9 percent from $2.825 billion at September 30, 2019. The increase in total assets was mainly related to increases in total cash and cash equivalents and was partly offset by a decrease in net loans receivable.

Loans receivable, net decreased by $100.1 million, or 4.4 percent, to $2.178 billion at December 31, 2019 from $2.278 billion at December 31, 2018, and decreased by $75.3 million, or 3.3 percent compared to $2.254 billion at September 30, 2019. The decrease in loans over the prior year was a result of payoffs, as well as curtailed loan growth in 2019.  Decreases in loans receivable, net for 2019 included $90.9 million in commercial real estate and multi-family loans, $9.7 million in residential one-to-four family loans, $8.3 million in home equity loans, $2.8 million in construction loans, $127,000 in consumer loans, partly offset by an increase of $12.4 million in commercial business loans.

Total deposits increased by $181.3 million, or 8.3 percent, to $2.362 billion at December 31, 2019 from $2.181 billion at December 31, 2018, and increased by $98.6 million, or 4.4 percent, from $2.263 billion at September 30, 2019. The increases in deposits were primarily related to the continued maturation of the branches opened over the last four years. Total increases for 2019 included $83.9 million in money market checking accounts, $62.4 million in NOW deposit accounts, $26.1 million in certificates of deposit, including listing service and brokered deposits, and $8.9 million in non-interest-bearing deposit accounts. Listing service and brokered certificates of deposit, which were used as additional sources of deposit liquidity, totaled $10.6 million and $92.1 million, respectively, at December 31, 2019.

Stockholders’ equity increased by $39.3 million, or 19.6 percent, to $239.5 million at December 31, 2019 from $200.2 million a year ago, and increased by $15.7 million, or 7.0 percent, from $223.7 million three months earlier. The increase in stockholders’ equity was primarily attributable to an increase in additional paid-in capital of $20.1 million related to common stock and preferred stock issued in the first and fourth quarters of 2019. Retained earnings increased by $10.0 million to $48.4 million at December 31, 2019 from $38.4 million at December 31, 2018, due primarily to the increase in net income, net of dividends paid. Treasury stock decreased $6.3 million to $22.0 million at December 31, 2019 from $28.3 million at December 31, 2018, related to the issuance of common stock. Accumulated other comprehensive loss decreased $2.9 million to $2.2 million at December 31, 2019 from $5.1 million a year ago, related to market gains lowering the unrealized loss on available-for-sale securities.

Fourth Quarter Income Statement Review

Net interest income decreased by $1.1 million, or 5.2 percent, to $20.1 million for the fourth quarter of 2019 from $21.2 million for the fourth quarter of 2018. The decrease in net interest income resulted primarily from an increase in the average balance of interest-bearing liabilities of $134.0 million, or 6.1 percent, to $2.334 billion for the fourth quarter of 2019 from $2.200 billion for the fourth quarter a year ago, as well as an increase in the average rate on interest-bearing liabilities of 18 basis points to 1.87 percent for the fourth quarter of 2019 from 1.69 percent for the fourth quarter of 2018. While there was an increase in the average balance of interest-earning assets of $175.2 million, or 6.7 percent, to $2.792 billion for the fourth quarter of 2019 from $2.617 billion for the fourth quarter of 2018, there was a decrease in the average yield on interest-earning assets of 22 basis points to 4.44 percent for the fourth quarter of 2019 from 4.66 percent for the fourth quarter of 2018. Interest income on loans also included $487,000 and $651,000 of amortization of purchase credit adjustments related to the acquisition of IAB for the three-month periods ended December 31, 2019 and 2018, respectively, which added approximately eight and ten basis points to the average yield on interest earning assets, respectively, on an annualized basis.

Net interest margin was 2.88 percent for the fourth quarter of 2019 and 3.24 percent for the fourth quarter of 2018. “The contraction in the net interest margin during the fourth quarter of 2019 was primarily due to the increase in the cost of funds outpacing the return on interest earning assets for the fourth quarter of 2019 as compared to the fourth quarter of 2018,” said Coughlin. “We expect with the three recent Federal Reserve rate cuts for our net interest margin to continue to remain under pressure.”

Total non-interest income decreased by $139,000, or 12.0 percent, to $1.0 million for the fourth quarter of 2019 from $1.1 million for the fourth quarter of 2018. The decrease in total non-interest income was mainly related to lower income on gains on sale of loans, lower income on fees and service charges, lower income on the gain on sale of investment securities, and lower income on the sale of other real estate owned properties, partly offset by decreases in the unrealized losses on equity securities and a slight increase in other non-interest income. Gain on sales of loans decreased by $244,000, or 56.0 percent, to $192,000 for the fourth quarter of 2019 from $436,000 for the fourth quarter of 2018. Fees and service charges decreased $193,000, or 19.1 percent, to $819,000 for the fourth quarter of 2019 from $1.0 million for the fourth quarter of 2018, mainly related to less mortgage servicing fee income from fewer sales of loans. Losses on the sale of investment securities totaled $42,000 for the fourth quarter of 2019 with no comparable figure in the fourth quarter a year ago.

Fourth quarter of 2019 total non-interest expense increased by $376,000, or 2.7 percent, to $14.3 million from $13.9 million for the fourth quarter a year ago. Salaries and employee benefits expense increased by $287,000, or 4.1 percent, to $7.3 million for the fourth quarter of 2019 from $7.0 million for the fourth quarter of 2018.  Professional fee expense increased by $197,000, or 42.6 percent, to $659,000 for the fourth quarter of 2019 from $462,000 for the fourth quarter of 2018.  Occupancy expense increased by $183,000, or 7.2 percent, to $2.7 million for the fourth quarter of 2019 from $2.5 million for the fourth quarter a year ago, largely related to the opening of two de novo branches, as well as a relocation of one of our existing branches in 2019.  Regulatory fees associated with FDIC assessments decreased by $356,000, or 73.1 percent, to $131,000 for the fourth quarter of 2019 from $487,000 for the fourth quarter of 2018. The decrease was primarily due to a decrease in the assessment rate and 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.

The income tax provision decreased by $213,000, or 8.9 percent, to $2.2 million for the fourth quarter of 2019 from $2.4 million for the fourth quarter of 2018. The decrease in the income tax provision was a result of lower taxable income for the fourth quarter as compared to the same period for 2018. The consolidated effective tax rate for the fourth quarter of 2019 was 29.9 percent compared to 31.5 percent for the fourth quarter a year ago.

Full Year 2019 Income Statement Review

Net interest income increased by $4.9 million, or 6.3 percent, to $82.6 million for the year ended December 31, 2019 from $77.7 million for the year ended December 31, 2018.

Net interest margin was 3.07 percent for the year 2019 and 3.31 percent for 2018. The decrease in the net interest margin was the result of a competitive interest rate environment, with the increase in the cost of funds outpacing the return on interest earning assets for the short term. Interest income on loans also included $2.0 million and $1.7 million of amortization of purchase credit adjustments related to the acquisition of IAB for the years ended December 31, 2019 and 2018, respectively, which added approximately eight basis points in both years to the average yield on interest earning assets.

Total non-interest income decreased by $2.6 million, or 32.3 percent, to $5.4 million for 2019 from $8.0 million for 2018. The decrease in total non-interest income was mainly related to a decrease in other non-interest income of $2.2 million to $249,000 for 2019 from $2.5 million for 2018, which was mainly attributed to $2.0 million received from a legal settlement in the first quarter of 2018. The decrease in total non-interest income also included decreases of $1.3 million in gains on sales of loans, and a decrease of $426,000 in fees and service charges, both related to lower levels of sales of loans. The decrease in total non-interest income was partly offset by increases of $823,000 in unrealized gains on equity securities, $262,000 in gains on sale of investment securities, $147,000 in gains on sale of other real estate owned properties, as well as an increase of $131,000 in gains on sale of impaired loans.

Total non-interest expense decreased by $683,000, or 1.2 percent, to $55.6 million for 2019 from $56.3 million for 2018.  There were no merger-related expenses in 2019, compared to $2.4 million in merger-related expenses in 2018.  Regulatory fees associated with FDIC assessments decreased by $521,000, or 36.3 percent, to $914,000 for 2019 from $1.4 million in 2018. The decrease was primarily due to a decrease in the assessment rate and 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.

The income tax provision increased by $1.8 million, or 24.4 percent, to $9.3 million for 2019 from $7.5 million for 2018. The increase in the income tax provision was a result of higher taxable income for 2019 compared to 2018. The consolidated effective tax rate for 2019 was 30.7 percent compared to 30.9 percent for 2018.

Asset Quality

Primarily as a result of the decrease in average balances of net loans, the Company recognized a credit in the provision for loan losses of $475,000 for the fourth quarter of 2019.  This compares to a provision for loan losses of $900,000 in the preceding quarter and $821,000 for the fourth quarter a year ago.  For the full year 2019, the provision for loan losses decreased to $2.1 million from $5.1 million in 2018, primarily due to the reduction in net loans receivable for 2019.

Non-accruing loans improved to $4.2 million, or 0.19 percent, of gross loans at December 31, 2019, compared to $5.1 million, or 0.22 percent, of gross loans at September 30, 2019, and $7.2 million, or 0.31 percent, of gross loans a year ago.  

Performing troubled debt restructured (“TDR”) loans that were not included in nonaccrual loans at December 31, 2019, were $16.5 million, compared to $16.4 million at September 30, 2019 and $21.4 million at December 31, 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 decreased $1.0 million to $23.7 million, or 570.5 percent of non-accruing loans and 1.08 percent of gross loans, at December 31, 2019, compared to $24.7 million, or 486.6 percent of non-accruing loans and 1.08 percent of gross loans, at September 30, 2019, and increased $1.3 million compared to $22.4 million, or 309.6 percent of non-accruing loans and 0.97 percent of gross loans, a year ago.

The Company recognized net charge-offs of $482,000 during the fourth quarter of 2019. This compares to net recoveries of $2,000 in the third quarter of 2019 and net recoveries of $34,000 in the fourth quarter a year ago.  For 2019, the Company recognized $694,000 in net charge-offs compared to $146,000 in net charge-offs in 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, and a loan production office in Hoboken. 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.

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: 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,
	December 31, 2019			September 30, 2019			December 31, 2018			December 31, 2019 vs.September 30, 2019		December 31, 2019 vs.December 31, 2018
Interest and dividend income:	(Dollars in thousands)
Loans, including fees	$	28,254		$	28,860		$	28,243		-2.1	%	0.0	%
Mortgage-backed securities		583			652			791		-10.6	%	-26.3	%
Other investment securities		135			107			191		26.2	%	-29.3	%
FHLB stock and other interest earning assets		1,994			1,750			1,263		13.9	%	57.9	%
Total interest and dividend income		30,966			31,369			30,488		-1.3	%	1.6	%
Interest expense:
Deposits:
Demand		2,023			1,898			1,412		6.6	%	43.3	%
Savings and club		103			102			126		1.0	%	-18.3	%
Certificates of deposit		6,704			6,603			5,674		1.5	%	18.2	%
		8,830			8,603			7,212		2.6	%	22.4	%
Borrowings		2,059			2,006			2,105		2.6	%	-2.2	%
Total interest expense		10,889			10,609			9,317		2.6	%	16.9	%
Net interest income		20,077			20,760			21,171		-3.3	%	-5.2	%
(Credit) Provision for loan losses		(475	)		900			821		-152.8	%	-157.9	%
Net interest income after provision for loan losses		20,552			19,860			20,350		3.5	%	1.0	%
Non-interest income:
Fees and service charges		819			855			1,012		-4.2	%	-19.1	%
Gain on sales of loans		192			89			436		115.7	%	-56.0	%
Gain on sales of other real estate owned		-			124			26		-100.0	%	-100.0	%
(Loss) gain on sale of investment securities		(42	)		283			-		-114.8	%	0.0	%
Unrealized (loss) on equity investments		(19	)		(45	)		(380	)	-57.8	%	-95.0	%
Other		70			77			65		-9.1	%	7.7	%
Total non-interest income		1,020			1,383			1,159		-26.2	%	-12.0	%
Non-interest expense:
Salaries and employee benefits		7,329			7,294			7,042		0.5	%	4.1	%
Occupancy and equipment		2,734			2,647			2,551		3.3	%	7.2	%
Data processing and service fees		959			776			876		23.6	%	9.5	%
Professional fees		659			368			462		79.1	%	42.6	%
Director fees		391			356			158		9.8	%	147.5	%
Regulatory assessment fees (credits)		131			(91	)		487		244.0	%	-73.1	%
Advertising and promotional		74			64			108		15.6	%	-31.5	%
Other real estate owned, net		(6	)		(31	)		59		80.6	%	-110.2	%
Merger related costs		-			-			105		-		-100.0	%
Other		1,989			2,269			2,036		-12.3	%	-2.3	%
Total non-interest expense		14,260			13,652			13,884		4.5	%	2.7	%
Income before income tax provision		7,312			7,591			7,625		-3.7	%	-4.1	%
Income tax provision		2,188			2,359			2,401		-7.2	%	-8.9	%
Net Income	$	5,124		$	5,232		$	5,224		-2.1	%	-1.9	%
Preferred stock dividends		342			342			262		0.1	%	30.7	%
Net Income available to common stockholders	$	4,782		$	4,890		$	4,962		-2.2	%	-3.6	%
Net Income per common share-basic and diluted
Basic	$	0.29		$	0.30		$	0.31		-3.4	%	-7.7	%
Diluted	$	0.29		$	0.30		$	0.31		-4.0	%	-8.0	%
Weighted average number of common shares outstanding
Basic		16,508			16,468			15,820		0.2	%	4.3	%
Diluted		16,601			16,523			15,851		0.5	%	4.7	%

	Year Ended,
	December 31, 2019		December 31, 2018			December 31, 2019 vs.December 31, 2018
Interest and dividend income:	(Dollars in thousands)
Loans, including fees	$	113,981	$	97,831		16.5	%
Mortgage-backed securities		2,743		3,154		-13.0	%
Other investment securities		567		607		-6.6	%
FHLB stock and other interest earning assets		6,264		3,505		78.7	%
Total interest and dividend income		123,555		105,097		17.6	%
Interest expense:
Deposits:
Demand		7,247		4,314		68.0	%
Savings and club		428		444		-3.6	%
Certificates of deposit		25,394		16,400		54.8	%
		33,069		21,158		56.3	%
Borrowings		7,882		6,258		26.0	%
Total interest expense		40,951		27,416		49.4	%
Net interest income		82,604		77,681		6.3	%
Provision for loan losses		2,069		5,130		-59.7	%
Net interest income after provision for loan losses		80,535		72,551		11.0	%
Non-interest income:
Fees and service charges		3,359		3,785		-11.3	%
Gain on sales of loans		1,036		2,333		-55.6	%
Gain (loss) on bulk sale of impaired loans held in portfolio		107		(24	)	545.8	%
Gain on sales of other real estate owned		177		30		490.0	%
Gain on sale of investment securities		262		-		-
Unrealized gain (loss) on equity investments		201		(622	)	132.3	%
Other		249		2,458		-89.9	%
Total non-interest income		5,391		7,960		-32.3	%
Non-interest expense:
Salaries and employee benefits		28,456		27,590		3.1	%
Occupancy and equipment		10,660		9,579		11.3	%
Data processing and service fees		3,187		3,375		-5.6	%
Professional fees		2,033		1,937		5.0	%
Director fees		1,381		752		83.6	%
Regulatory assessments		914		1,435		-36.3	%
Advertising and promotional		334		422		-20.9	%
Other real estate owned, net		71		272		-73.9	%
Merger related costs		-		2,408		-100.0	%
Other		8,547		8,496		0.6	%
Total non-interest expense		55,583		56,266		-1.2	%
Income before income tax provision		30,343		24,245		25.2	%
Income tax provision		9,309		7,482		24.4	%
Net Income	$	21,034	$	16,763		25.5	%
Preferred stock dividends		1,344		953		41.0	%
Net Income available to common stockholders	$	19,690	$	15,810		24.5	%
Net Income per common share-basic and diluted
Basic	$	1.20	$	1.02		18.5	%
Diluted	$	1.20	$	1.01		18.8	%
Weighted average number of common shares outstanding
Basic		16,367		15,567		5.1	%
Diluted		16,423		15,661		4.9	%

Statements of Financial Condition	December 31, 2019			September 30, 2019			December 31, 2018			December 31, 2019 vs.September 30, 2019		December 31, 2019 vs.December 31, 2018
ASSETS	(Dollars in thousands)
Cash and amounts due from depository institutions	$	24,985		$	27,625		$	18,970		-9.6	%	31.7	%
Interest-earning deposits		525,368			348,986			176,294		50.5	%	198.0	%
Total cash and cash equivalents		550,353			376,611			195,264		46.1	%	181.9	%
Interest-earning time deposits		735			735			735		-		-
Debt securities available for sale		91,613			98,218			119,335		-6.7	%	-23.2	%
Equity investments		2,500			5,857			7,672		-57.3	%	-67.4	%
Loans held for sale		917			3,195			1,153		-71.3	%	-20.5	%
Loans receivable, net of allowance for loan losses of $23,734, $24,691, and $22,359 respectively		2,178,407			2,253,699			2,278,492		-3.3	%	-4.4	%
Federal Home Loan Bank of New York stock, at cost		13,821			15,171			13,405		-8.9	%	3.1	%
Premises and equipment, net		19,920			20,315			20,293		-1.9	%	-1.8	%
Operating lease right-of-use asset		13,246			13,951			-		-5.1	%	-
Accrued interest receivable		8,318			8,959			8,378		-7.2	%	-0.7	%
Other real estate owned		1,623			-			1,333		-		21.8	%
Deferred income taxes		11,180			13,445			13,601		-16.8	%	-17.8	%
Goodwill and other intangibles		5,552			5,570			5,604		-0.3	%	-0.9	%
Other assets		9,283			9,773			9,466		-5.0	%	-1.9	%
Total Assets	$	2,907,468		$	2,825,499		$	2,674,731		2.9	%	8.7	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits	$	271,901		$	276,235		$	263,960		-1.6	%	3.0	%
Interest bearing deposits		2,090,162			1,987,222			1,916,764		5.2	%	9.0	%
Total deposits		2,362,063			2,263,457			2,180,724		4.4	%	8.3	%
FHLB advances		245,800			275,800			245,800		-10.9	%	-
Subordinated debentures		36,810			36,752			36,577		0.2	%	0.6	%
Operating lease liability		13,380			14,054			-		-4.8	%	-
Other liabilities		9,942			11,717			11,415		-15.1	%	-12.9	%
Total Liabilities		2,667,995			2,601,780			2,474,516		2.5	%	7.8	%
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, 40,000,000 shares authorized		-			-			-		-		-
Additional paid-in capital common stock		190,294			177,253			175,500		7.4	%	8.4	%
Retained earnings		48,429			45,947			38,405		5.4	%	26.1	%
Accumulated other comprehensive (loss)		(2,218	)		(2,449	)		(5,076	)	-9.4	%	-56.3	%
Treasury stock, at cost		(22,048	)		(22,048	)		(28,320	)	-		-22.1	%
Total Stockholders' Equity		239,473			223,719			200,215		7.0	%	19.6	%
Total Liabilities and Stockholders' Equity	$	2,907,468		$	2,825,499		$	2,674,731		2.9	%	8.7	%
Outstanding common shares		17,517			16,477			15,889		6.3	%	10.2	%

 

		Three Months Ended December 31,
	2019									2018
		AverageBalance			InterestEarned/Paid		AverageYield/Rate (3)				AverageBalance			InterestEarned/Paid		AverageYield/Rate (3)
		(Dollars in thousands)
Interest-earning assets:
Loans Receivable	$	2,269,581		$	28,254		4.98	%		$	2,288,372		$	28,243		4.94	%
Investment Securities		100,676			718		2.85	%			141,248			982		2.78	%
Interest-earning deposits		421,659			1,994		1.89	%			187,051			1,263		2.70	%
Total Interest-earning assets		2,791,916			30,966		4.44	%			2,616,671			30,488		4.66	%
Non-interest-earning assets		70,330									61,033
Total assets	$	2,862,246								$	2,677,704
Interest-bearing liabilities:
Interest-bearing demand accounts	$	360,201		$	716		0.80	%		$	349,730		$	634		0.73	%
Money market accounts		284,546			1,307		1.84	%			214,278			778		1.45	%
Savings accounts		256,663			103		0.16	%			261,526			126		0.19	%
Certificates of Deposit		1,120,029			6,704		2.39	%			1,063,045			5,674		2.13	%
Total interest-bearing deposits		2,021,439			8,830		1.75	%			1,888,579			7,212		1.53	%
Borrowed funds		312,848			2,059		2.63	%			311,663			2,105		2.70	%
Total interest-bearing liabilities		2,334,287			10,889		1.87	%			2,200,242			9,317		1.69	%
Non-interest-bearing liabilities		303,262									281,400
Total liabilities		2,637,549									2,481,642
Stockholders' equity		224,697									196,062
Total liabilities and stockholders' equity	$	2,862,246								$	2,677,704
Net interest income				$	20,077								$	21,171
Net interest rate spread(1)							2.57	%								2.97	%
Net interest margin(2)							2.88	%								3.24	%

(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.

	Years Ended December 31,
	2019									2018
		AverageBalance			InterestEarned/Paid		AverageYield/Rate				AverageBalance			InterestEarned/Paid		AverageYield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable	$	2,305,496		$	113,981		4.94	%		$	2,060,187		$	97,831		4.75	%
Investment Securities		115,548			3,310		2.86	%			142,343			3,761		2.64	%
Interest-earning deposits		271,067			6,264		2.31	%			142,867			3,505		2.45	%
Total Interest-earning assets		2,692,111			123,555		4.59	%			2,345,397			105,097		4.48	%
Non-interest-earning assets		72,634									55,404
Total assets	$	2,764,745								$	2,400,801
Interest-bearing liabilities:
Interest-bearing demand accounts	$	346,973		$	2,628		0.76	%		$	334,156		$	2,036		0.61	%
Money market accounts		261,395			4,611		1.76	%			188,109			2,278		1.21	%
Savings accounts		258,481			427		0.17	%			262,745			444		0.17	%
Certificates of Deposit		1,089,408			25,403		2.33	%			911,141			16,400		1.80	%
Total interest-bearing deposits		1,956,257			33,069		1.69	%			1,696,151			21,158		1.25	%
Borrowed funds		294,562			7,882		2.68	%			262,227			6,258		2.39	%
Total interest-bearing liabilities		2,250,819			40,951		1.82	%			1,958,378			27,416		1.40	%
Non-interest-bearing liabilities		296,185									253,301
Total liabilities		2,547,004									2,211,679
Stockholders' equity		217,741									189,122
Total liabilities and stockholders' equity	$	2,764,745								$	2,400,801
Net interest income				$	82,604								$	77,681
Net interest rate spread(1)							2.77	%								3.08	%
Net interest margin(2)							3.07	%								3.31	%

(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. 

	Financial condition data by quarter
	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
	(In thousands, except tangible book value)
Total assets	$	2,907,468		$	2,825,499		$	2,738,130		$	2,718,400		$	2,674,731
Cash and cash equivalents		550,353			376,611			227,642			193,548			195,264
Securities		94,113			104,075			122,159			125,905			127,007
Loans receivable, net		2,178,407			2,253,699			2,299,765			2,307,140			2,278,492
Deposits		2,362,063			2,263,457			2,208,222			2,188,633			2,180,724
Borrowings		282,610			312,552			282,493			282,435			282,377
Stockholders’ equity		239,473			223,719			221,153			216,718			200,215
Tangible Book Value		11.94			11.72			11.58			11.35			11.00
	Operating data by quarter
	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
	(In thousands, except for per share amounts)
Net interest income	$	20,077		$	20,760		$	20,865		$	20,902		$	21,171
Provision for loan losses		(475	)		900			755			889			821
Non-interest income		1,020			1,383			1,328			1,660			1,159
Non-interest expense		14,260			13,652			13,894			13,777			13,884
Income tax expense		2,188			2,359			2,317			2,445			2,401
Net income	$	5,124		$	5,232		$	5,227		$	5,451		$	5,224
Net income per diluted share	$	0.29		$	0.30		$	0.30		$	0.32		$	0.31
Common Dividends declared per share	$	0.14		$	0.14		$	0.14		$	0.14		$	0.14
	Financial Ratios
	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
Return on average assets		0.72	%		0.75	%		0.77	%		0.81	%		0.78	%
Return on average stockholder’s equity		9.12	%		9.44	%		9.61	%		10.55	%		10.66	%
Net interest margin		2.88	%		3.06	%		3.16	%		3.18	%		3.24	%
Stockholder’s equity to total assets		8.24	%		7.92	%		8.08	%		7.97	%		7.49	%
Efficiency Ratio		67.59	%		61.65	%		62.61	%		61.06	%		62.18	%
	Asset Quality Ratios
	(In thousands, except for ratio %)
	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
Non-Accrual Loans	$	4,160		$	5,074		$	5,488		$	5,670		$	7,221
Non-Accrual Loans as a % of Total Loans		0.19	%		0.22	%		0.24	%		0.24	%		0.31	%
ALLL as % of Non-Accrual Loans		570.53	%		486.62	%		433.47	%		405.71	%		309.64	%
Impaired Loans		26,912			30,856			37,275			40,533			42,408
Classified Loans		13,483			15,998			22,679			23,977			26,161

	Recorded Investment in Loans Receivable by quarter
	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
	(In Thousands)
Residential one-to-four family	$	248,381		$	252,971		$	258,688		$	258,184		$	258,085
Commercial and multi-family		1,606,976			1,668,982			1,702,132			1,724,326			1,697,837
Construction		104,996			131,697			134,963			114,462			107,783
Commercial business		177,642			161,649			164,569			167,067			165,193
Home equity		64,638			63,645			63,927			66,946			72,895
Consumer		682			728			727			731			809
	$	2,203,315		$	2,279,672		$	2,325,006		$	2,331,716		$	2,302,602
Less:
Deferred loan fees, net		(1,174	)		(1,282	)		(1,452	)		(1,572	)		(1,751	)
Allowance for loan loss		(23,734	)		(24,691	)		(23,789	)		(23,004	)		(22,359	)
Total loans, net	$	2,178,407		$	2,253,699		$	2,299,765		$	2,307,140		$	2,278,492
	Non-Accruing Loans in Portfolio by quarter
	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
	(In Thousands)
Originated loans:
Residential one-to-four family	$	590		$	814		$	1,022		$	1,415		$	1,160
Commercial and multi-family		761			1,584			1,881			1,364			2,568
Commercial business		1,428			887			745			256			356
Home equity		347			350			129			272			277
Sub-total:	$	3,126		$	3,635		$	3,777		$	3,307		$	4,361
Acquired loans initially recorded at fair value:
Residential one-to-four family	$	291		$	1,046		$	1,116		$	1,704		$	2,165
Commercial and multi-family		217			-			-			597			605
Commercial business		513			378			378			-			48
Home equity		13			15			217			62			42
Sub-total:	$	1,034		$	1,439		$	1,711		$	2,363		$	2,860
Total:	$	4,160		$	5,074		$	5,488		$	5,670		$	7,221

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
	Tangible Book Value per Share
	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
							(In Thousands, except per share amounts)
Total Stockholders' Equity	$	239,473		$	223,719		$	221,153		$	216,718		$	200,215
Less: goodwill		5,253			5,570			5,587			5,584			5,699
Less: preferred stock		25,016			25,016			25,016			25,016			19,706
Total tangible stockholders' equity		209,204			193,133			190,550			186,118			174,810
Shares outstanding		17,517			16,477			16,461			16,398			15,889
Book value per share	$	13.67		$	13.58		$	13.43		$	13.22		$	12.60
Tangible book value per share	$	11.94		$	11.72		$	11.58		$	11.35		$	11.00
	Efficiency Ratios
	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
							(In Thousands)
Net interest income	$	20,077		$	20,760		$	20,865		$	20,902		$	21,171
Non-interest income		1,020			1,383			1,328			1,660			1,159
Total income		21,097			22,143			22,193			22,562			22,330
Non-interest expense		14,260			13,652			13,894			13,777			13,884
Efficiency Ratio*		67.59	%		61.65	%		62.61	%		61.06	%		62.18	%
*Efficiency Ratio is calculated as total non-interest expense to total income

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