The Company announced that its Board of Directors declared a regular quarterly cash dividend of
“We remain profitable with a favorable asset quality profile and solid liquidity and capital levels. The persistently high interest rate environment with a bias for staying elevated continues to adversely impact the availability and the pricing of liquidity for the banking industry. We have intentionally slowed down the growth of our balance sheet, as we are very focused on protecting our profitability, liquidity and capital position in an uncertain economic environment,” stated
“Our asset quality remains strong and our non-accrual loans to total loans ratio was 0.24 percent at September 30, 2023, compared to 0.17 percent at June 30, 2023, and 0.30 percent a year ago. We adopted the CECL methodology commencing January 1, 2023 and under the new methodology, we recorded a loan loss provision of $2.21 million during the third quarter of 2023 compared to $1.35 million during the preceding quarter,” said Mr. Coughlin.
Executive Summary
- Total deposits were
$2.820 billion atSeptember 30, 2023 compared to$2.886 billion atJune 30, 2023 . - Net interest margin was 2.78 percent for the third quarter of 2023, compared to 2.92 percent for the second quarter of 2023, and 4.18 percent for the third quarter of 2022.
- Total yield on interest-earning assets increased 20 basis points to 5.31 percent for the third quarter of 2023, compared to 5.11 percent for the second quarter of 2023, and increased 67 basis points from 4.64 percent for the third quarter of 2022.
- Total cost of interest-bearing liabilities increased 37 basis points to 3.17 percent for the third quarter of 2023, compared to 2.80 percent for the second quarter of 2023, and increased 253 basis points from 0.64 percent for the third quarter of 2022.
- The efficiency ratio for the third quarter was 57.1 percent compared to 52.3 percent in the prior quarter, and 41.5 percent in the third quarter of 2022.
- The annualized return on average assets ratio for the third quarter was 0.70 percent, compared to 0.90 percent in the prior quarter, and 1.74 percent in the third quarter of 2022.
- The annualized return on average equity ratio for the third quarter was 8.9 percent, compared to 11.6 percent in the prior quarter, and 19.4 percent in the third quarter of 2022.
- The provision for credit losses was
$2.21 million in the third quarter of 2023 compared to$1.35 million for the second quarter and no provision for the third quarter of 2022. - The allowance for credit losses (“ACL”) as a percentage of non-accrual loans was 402.4 percent at
September 30, 2023 , compared to 530.3 percent for the prior quarter-end and 390.3 percent atSeptember 30, 2022 . The total non-accrual loans were$7.93 million atSeptember 30, 2023 ,$5.70 million atJune 30, 2023 and$8.51 million atSeptember 30, 2022 . - Total loans receivable, net of the allowance for credit losses, increased 17.9 percent to
$3.286 billion atSeptember 30, 2023 , up from$2.787 billion atSeptember 30, 2022 , but down 1.0% from$3.320 billion atJune 30, 2023 .
Balance Sheet Review
Total assets increased by
Total cash and cash equivalents increased by
Loans receivable, net, increased by
Total investment securities decreased by
Deposit liabilities increased by
Debt obligations increased by
Stockholders’ equity increased by
Third Quarter 2023 Income Statement Review
Net income was
Net interest income decreased by
Interest income increased by
Interest expense increased by
The net interest margin was 2.78 percent for the third quarter of 2023 compared to 4.18 percent for the third quarter of 2022. The decrease in the net interest margin compared to the third quarter of 2022 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 third quarter of 2023, the Company experienced
Non-interest income decreased by
Non-interest expense increased by
The income tax provision decreased by
Year-to-Date Income Statement Review
Net income decreased by
Net interest income decreased by
The
The increase in interest income mainly related to an increase in the average balance of loans receivable of
The
Net interest margin was 2.95 percent for the first nine months of 2023, compared to 3.79 percent for the first nine months of 2022. The decrease in the net interest margin compared to the prior period was the result of an increase in the average volume of interest-bearing liabilities as well as an increase in the cost of interest-bearing liabilities.
During the first nine months of 2023, the Company experienced
Non-interest income increased by
Non-interest expense increased by
The income tax provision decreased by
Asset Quality
The Bank had non-accrual loans totaling
About
Established in 2000 and headquartered in
Forward-Looking Statements
This release, like many written and oral communications presented by
The most significant factors 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 in a rapidly changing and unpredictable market; supply chain disruptions, labor shortages; and additional interest rate increases by the
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 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, | ||||||||||||||
Interest and dividend income: | (In thousands, except per share amounts, Unaudited) | |||||||||||||
Loans, including fees | $ | 44,133 | $ | 42,644 | $ | 32,302 | 3.5 | % | 36.6 | % | ||||
Mortgage-backed securities | 217 | 184 | 173 | 17.9 | % | 25.4 | % | |||||||
Other investment securities | 1,045 | 1,070 | 1,103 | -2.3 | % | -5.3 | % | |||||||
FHLB stock and other interest earning assets | 3,672 | 3,339 | 822 | 10.0 | % | 346.7 | % | |||||||
Total interest and dividend income | 49,067 | 47,237 | 34,400 | 3.9 | % | 42.6 | % | |||||||
Interest expense: | ||||||||||||||
Deposits: | ||||||||||||||
Demand | 4,556 | 4,190 | 1,169 | 8.7 | % | 289.7 | % | |||||||
Savings and club | 182 | 143 | 113 | 27.3 | % | 61.1 | % | |||||||
Certificates of deposit | 10,922 | 8,474 | 1,087 | 28.9 | % | 904.8 | % | |||||||
15,660 | 12,807 | 2,369 | 22.3 | % | 561.0 | % | ||||||||
Borrowings | 7,727 | 7,441 | 1,080 | 3.8 | % | 615.5 | % | |||||||
Total interest expense | 23,387 | 20,248 | 3,449 | 15.5 | % | 578.1 | % | |||||||
Net interest income | 25,680 | 26,989 | 30,951 | -4.9 | % | -17.0 | % | |||||||
Provision for credit losses | 2,205 | 1,350 | - | 63.3 | % | - | ||||||||
Net interest income after provision for credit losses | 23,475 | 25,639 | 30,951 | -8.4 | % | -24.2 | % | |||||||
Non-interest income (loss): | ||||||||||||||
Fees and service charges | 1,349 | 1,442 | 1,251 | -6.4 | % | 7.8 | % | |||||||
Gain on sales of loans | 19 | - | 18 | - | 5.6 | % | ||||||||
Realized and unrealized loss on equity investments | (494 | ) | (669 | ) | (559 | ) | -26.2 | % | -11.6 | % | ||||
BOLI income | 466 | 267 | 646 | 74.5 | % | -27.9 | % | |||||||
Other | 66 | 78 | 90 | -15.4 | % | -26.7 | % | |||||||
Total non-interest income (loss) | 1,406 | 1,118 | 1,446 | 25.8 | % | -2.8 | % | |||||||
Non-interest expense: | ||||||||||||||
Salaries and employee benefits | 7,524 | 7,711 | 6,944 | -2.4 | % | 8.4 | % | |||||||
Occupancy and equipment | 2,622 | 2,560 | 2,608 | 2.4 | % | 0.5 | % | |||||||
Data processing and communications | 1,787 | 1,795 | 1,520 | -0.4 | % | 17.6 | % | |||||||
Professional fees | 560 | 622 | 614 | -10.0 | % | -8.8 | % | |||||||
Director fees | 274 | 270 | 375 | 1.5 | % | -26.9 | % | |||||||
Regulatory assessment fees | 1,111 | 796 | 264 | 39.6 | % | 320.8 | % | |||||||
Advertising and promotions | 317 | 350 | 286 | -9.4 | % | 10.8 | % | |||||||
Other real estate owned, net | 1 | 1 | 1 | 0.0 | % | 0.0 | % | |||||||
Other | 1,267 | 601 | 841 | 110.8 | % | 50.7 | % | |||||||
Total non-interest expense | 15,463 | 14,706 | 13,453 | 5.1 | % | 14.9 | % | |||||||
Income before income tax provision | 9,418 | 12,051 | 18,944 | -21.8 | % | -50.3 | % | |||||||
Income tax provision | 2,707 | 3,447 | 5,552 | -21.5 | % | -51.2 | % | |||||||
Net Income | 6,711 | 8,604 | 13,392 | -22.0 | % | -49.9 | % | |||||||
Preferred stock dividends | 173 | 174 | 174 | -0.7 | % | -0.6 | % | |||||||
Net Income available to common stockholders | $ | 6,538 | $ | 8,430 | $ | 13,218 | -22.4 | % | -50.5 | % | ||||
Net Income per common share-basic and diluted | ||||||||||||||
Basic | $ | 0.39 | $ | 0.50 | $ | 0.78 | -22.5 | % | -50.1 | % | ||||
Diluted | $ | 0.39 | $ | 0.50 | $ | 0.76 | -22.5 | % | -49.1 | % | ||||
Weighted average number of common shares outstanding | ||||||||||||||
Basic | 16,830 | 16,824 | 16,997 | 0.0 | % | -1.0 | % | |||||||
Diluted | 16,854 | 16,831 | 17,404 | 0.1 | % | -3.2 | % | |||||||
Statements of Income - Nine Months Ended, | |||||||||
Interest and dividend income: | (In thousands, except per share amounts, Unaudited) | ||||||||
Loans, including fees | $ | 125,666 | $ | 87,404 | 43.8 | % | |||
Mortgage-backed securities | 587 | 379 | 54.9 | % | |||||
Other investment securities | 3,235 | 2,990 | 8.2 | % | |||||
FHLB stock and other interest earning assets | 9,168 | 1,812 | 406.0 | % | |||||
Total interest and dividend income | 138,656 | 92,585 | 49.8 | % | |||||
Interest expense: | |||||||||
Deposits: | |||||||||
Demand | 11,900 | 2,873 | 314.2 | % | |||||
Savings and club | 443 | 331 | 33.8 | % | |||||
Certificates of deposit | 25,849 | 2,916 | 786.5 | % | |||||
38,192 | 6,120 | 524.1 | % | ||||||
Borrowings | 20,324 | 2,701 | 652.5 | % | |||||
Total interest expense | 58,516 | 8,821 | 563.4 | % | |||||
Net interest income | 80,140 | 83,764 | -4.3 | % | |||||
Provision (benefit) for credit losses | 4,177 | (2,575 | ) | -262.2 | % | ||||
Net interest income after provision (benefit) for credit losses | 75,963 | 86,339 | -12.0 | % | |||||
Non-interest income (loss): | |||||||||
Fees and service charges | 3,889 | 3,678 | 5.7 | % | |||||
Gain on sales of loans | 25 | 126 | -80.2 | % | |||||
Realized and unrealized loss on equity investments | (4,390 | ) | (5,546 | ) | -20.8 | % | |||
BOLI income | 1,154 | 2,087 | -44.7 | % | |||||
Other | 182 | 188 | -3.2 | % | |||||
Total non-interest loss | 860 | 533 | 61.4 | % | |||||
Non-interest expense: | |||||||||
Salaries and employee benefits | 22,853 | 20,395 | 12.1 | % | |||||
Occupancy and equipment | 7,734 | 7,976 | -3.0 | % | |||||
Data processing and communications | 5,247 | 4,454 | 17.8 | % | |||||
Professional fees | 1,748 | 1,597 | 9.5 | % | |||||
Director fees | 809 | 992 | -18.4 | % | |||||
Regulatory assessments | 2,443 | 812 | 200.9 | % | |||||
Advertising and promotions | 945 | 681 | 38.8 | % | |||||
Other real estate owned, net | 3 | 6 | -50.0 | % | |||||
Other | 2,241 | 2,555 | -12.3 | % | |||||
Total non-interest expense | 44,023 | 39,468 | 11.5 | % | |||||
Income before income tax provision | 32,800 | 47,404 | -30.8 | % | |||||
Income tax provision | 9,379 | 13,897 | -32.5 | % | |||||
Net Income | 23,421 | 33,507 | -30.1 | % | |||||
Preferred stock dividends | 520 | 624 | -16.7 | % | |||||
Net Income available to common stockholders | $ | 22,901 | $ | 32,883 | -30.4 | % | |||
Net Income per common share-basic and diluted | |||||||||
Basic | $ | 1.36 | $ | 1.94 | -29.9 | % | |||
Diluted | $ | 1.35 | $ | 1.89 | -28.6 | % | |||
Weighted average number of common shares outstanding | |||||||||
Basic | 16,868 | 16,986 | -0.7 | % | |||||
Diluted | 16,951 | 17,369 | -2.4 | % | |||||
Statements of Financial Condition | |||||||||||||
ASSETS | (In Thousands, Unaudited) | ||||||||||||
Cash and amounts due from depository institutions | $ | 16,772 | $ | 13,378 | $ | 11,520 | 25.4 | % | 45.6 | % | |||
Interest-earning deposits | 235,144 | 259,834 | 217,839 | -9.5 | % | 7.9 | % | ||||||
Total cash and cash equivalents | 251,916 | 273,212 | 229,359 | -7.8 | % | 9.8 | % | ||||||
Interest-earning time deposits | 735 | 735 | 735 | - | - | ||||||||
Debt securities available for sale | 86,172 | 87,648 | 91,715 | -1.7 | % | -6.0 | % | ||||||
Equity investments | 8,272 | 12,825 | 17,686 | -35.5 | % | -53.2 | % | ||||||
Loans held for sale | 472 | - | 658 | - | -28.3 | % | |||||||
Loans receivable, net of allowance for credit losses | |||||||||||||
of | 3,285,727 | 3,319,721 | 3,045,331 | -1.02 | % | 7.89 | % | ||||||
31,629 | 31,667 | 20,113 | -0.1 | % | 57.3 | % | |||||||
Premises and equipment, net | 13,363 | 13,561 | 10,508 | -1.5 | % | 27.2 | % | ||||||
Accrued interest receivable | 16,175 | 15,384 | 13,455 | 5.1 | % | 20.2 | % | ||||||
Other real estate owned | 75 | 75 | 75 | - | - | ||||||||
Deferred income taxes | 16,749 | 16,445 | 16,462 | 1.8 | % | 1.7 | % | ||||||
5,288 | 5,324 | 5,382 | -0.7 | % | -1.7 | % | |||||||
Operating lease right-of-use asset | 12,953 | 13,658 | 13,520 | -5.2 | % | -4.2 | % | ||||||
Bank-owned life insurance (“BOLI”) | 72,809 | 72,344 | 71,656 | 0.6 | % | 1.6 | % | ||||||
Other assets | 9,785 | 10,254 | 9,538 | -4.6 | % | 2.6 | % | ||||||
Total Assets | $ | 3,812,120 | $ | 3,872,853 | $ | 3,546,193 | -1.6 | % | 7.5 | % | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
LIABILITIES | |||||||||||||
Non-interest bearing deposits | $ | 523,912 | $ | 620,509 | $ | 613,910 | -15.6 | % | -14.7 | % | |||
Interest bearing deposits | 2,295,644 | 2,265,212 | 2,197,697 | 1.3 | % | 4.5 | % | ||||||
Total deposits | 2,819,556 | 2,885,721 | 2,811,607 | -2.3 | % | 0.3 | % | ||||||
FHLB advances | 622,674 | 622,536 | 382,261 | 0.0 | % | 62.9 | % | ||||||
Subordinated debentures | 37,624 | 37,624 | 37,508 | 0.0 | % | 0.3 | % | ||||||
Operating lease liability | 13,318 | 14,003 | 13,859 | -4.9 | % | -3.9 | % | ||||||
Other liabilities | 15,312 | 13,346 | 9,704 | 14.7 | % | 57.8 | % | ||||||
Total Liabilities | 3,508,484 | 3,573,230 | 3,254,939 | -1.8 | % | 7.8 | % | ||||||
STOCKHOLDERS’ EQUITY | |||||||||||||
Preferred stock: | - | - | - | ||||||||||
Additional paid-in capital preferred stock | 20,783 | 21,003 | 21,003 | -1.0 | % | -1.0 | % | ||||||
Common stock: no par value, 40,000 shares authorized | - | - | - | 0.0 | % | 0.0 | % | ||||||
Additional paid-in capital common stock | 198,097 | 197,521 | 196,164 | 0.3 | % | 1.0 | % | ||||||
Retained earnings | 132,729 | 128,867 | 115,109 | 3.0 | % | 15.3 | % | ||||||
Accumulated other comprehensive loss | (9,626 | ) | (9,421 | ) | (6,491 | ) | 2.2 | % | 48.3 | % | |||
(38,347 | ) | (38,347 | ) | (34,531 | ) | 0.0 | % | 11.1 | % | ||||
Total Stockholders’ Equity | 303,636 | 299,623 | 291,254 | 1.3 | % | 4.3 | % | ||||||
Total Liabilities and Stockholders’ Equity | $ | 3,812,120 | $ | 3,872,853 | $ | 3,546,193 | -1.6 | % | 7.5 | % | |||
Outstanding common shares | 16,848 | 16,788 | 16,931 | ||||||||||
Three Months Ended | ||||||||||||||
2023 | 2022 | |||||||||||||
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) | $ | 3,330,446 | $ | 44,133 | 5.30 | % | $ | 2,699,093 | $ | 32,302 | 4.79 | % | ||
96,723 | 1262 | 5.22 | % | 112,172 | 1,276 | 4.55 | % | |||||||
FHLB stock and other interest-earning assets | 270,729 | 3,672 | 5.43 | % | 153,705 | 822 | 2.14 | % | ||||||
Total Interest-earning assets | 3,697,898 | 49,067 | 5.31 | % | 2,964,970 | 34,400 | 4.64 | % | ||||||
Non-interest-earning assets | 127,780 | 106,750 | ||||||||||||
Total assets | $ | 3,825,678 | $ | 3,071,720 | ||||||||||
Interest-bearing liabilities: | ||||||||||||||
Interest-bearing demand accounts | $ | 628,804 | $ | 2,244 | 1.43 | % | $ | 774,870 | $ | 707 | 0.36 | % | ||
Money market accounts | 331,813 | 2,311 | 2.79 | % | 353,821 | 462 | 0.52 | % | ||||||
Savings accounts | 300,484 | 182 | 0.24 | % | 343,515 | 113 | 0.13 | % | ||||||
Certificates of Deposit | 1,024,900 | 10,923 | 4.26 | % | 545,293 | 1,087 | 0.80 | % | ||||||
Total interest-bearing deposits | 2,286,001 | 15,660 | 2.74 | % | 2,017,500 | 2,369 | 0.47 | % | ||||||
Borrowed funds | 660,773 | 7,727 | 4.68 | % | 138,314 | 1,080 | 3.12 | % | ||||||
Total interest-bearing liabilities | 2,946,774 | 23,387 | 3.17 | % | 2,155,813 | 3,449 | 0.64 | % | ||||||
Non-interest-bearing liabilities | 577,963 | 640,102 | ||||||||||||
Total liabilities | 3,524,737 | 2,795,916 | ||||||||||||
Stockholders’ equity | 300,941 | 275,804 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 3,825,678 | $ | 3,071,720 | ||||||||||
Net interest income | $ | 25,680 | $ | 30,951 | ||||||||||
Net interest rate spread(1) | 2.13 | % | 4.00 | % | ||||||||||
Net interest margin(2) | 2.78 | % | 4.18 | % | ||||||||||
(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 which are immaterial to the yield. | ||||||||||||||
Nine Months Ended | |||||||||||||
2023 | 2022 | ||||||||||||
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) | $ | 3,271,018 | $ | 125,666 | 5.12 | % | $ | 2,521,375 | $ | 87,404 | 4.62 | % | |
102,143 | 3,822 | 4.99 | % | 109,422 | 3,369 | 4.11 | % | ||||||
FHLB stock and other interest-earning assets | 252,999 | 9,168 | 4.83 | % | 314,024 | 1,812 | 0.77 | % | |||||
Total Interest-earning assets | 3,626,161 | 138,656 | 5.10 | % | 2,944,821 | 92,585 | 4.19 | % | |||||
Non-interest-earning assets | 123,262 | 105,368 | |||||||||||
Total assets | $ | 3,749,422 | $ | 3,050,189 | |||||||||
Interest-bearing liabilities: | |||||||||||||
Interest-bearing demand accounts | $ | 684,691 | $ | 6,242 | 1.22 | % | $ | 759,307 | $ | 1,674 | 0.29 | % | |
Money market accounts | 325,923 | 5,657 | 2.31 | % | 351,846 | 1,199 | 0.45 | % | |||||
Savings accounts | 311,733 | 443 | 0.19 | % | 342,199 | 331 | 0.13 | % | |||||
Certificates of Deposit | 926,684 | 25,849 | 3.72 | % | 573,951 | 2,915 | 0.68 | % | |||||
Total interest-bearing deposits | 2,249,032 | 38,192 | 2.26 | % | 2,027,303 | 6,120 | 0.40 | % | |||||
Borrowed funds | 585,028 | 20,324 | 4.63 | % | 119,059 | 2,701 | 3.02 | % | |||||
Total interest-bearing liabilities | 2,834,060 | 58,516 | 2.75 | % | 2,146,362 | 8,821 | 0.71 | % | |||||
Non-interest-bearing liabilities | 618,037 | 631,097 | |||||||||||
Total liabilities | 3,452,097 | 2,777,459 | |||||||||||
Stockholders’ equity | 297,326 | 272,730 | |||||||||||
Total liabilities and stockholders’ equity | $ | 3,749,422 | $ | 3,050,189 | |||||||||
Net interest income | $ | 80,140 | $ | 83,764 | |||||||||
Net interest rate spread(1) | 2.35 | % | 3.64 | % | |||||||||
Net interest margin(2) | 2.95 | % | 3.79 | % | |||||||||
(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) Presented on an annualized basis, where appropriate. | |||||||||||||
(4) Excludes allowance for loan losses. | |||||||||||||
(5) Includes non-accrual loans which are immaterial to the yield. | |||||||||||||
Financial Condition data by quarter | ||||||||||||||||
Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||
(In thousands, except book values) | ||||||||||||||||
Total assets | $ | 3,812,120 | $ | 3,872,853 | $ | 3,763,056 | $ | 3,546,193 | $ | 3,265,612 | ||||||
Cash and cash equivalents | 251,916 | 273,212 | 261,075 | 229,359 | 221,024 | |||||||||||
Securities | 94,444 | 100,473 | 101,446 | 109,401 | 111,159 | |||||||||||
Loans receivable, net | 3,285,727 | 3,319,721 | 3,231,864 | 3,045,331 | 2,787,015 | |||||||||||
Deposits | 2,819,556 | 2,885,721 | 2,867,209 | 2,811,607 | 2,712,946 | |||||||||||
Borrowings | 660,298 | 660,160 | 569,965 | 419,769 | 249,573 | |||||||||||
Stockholders’ equity | 303,636 | 299,623 | 297,618 | 291,254 | 282,682 | |||||||||||
Book value per common share1 | $ | 16.79 | $ | 16.60 | $ | 16.38 | $ | 15.96 | $ | 15.42 | ||||||
Tangible book value per common share2 | $ | 16.48 | $ | 16.28 | $ | 16.07 | $ | 15.65 | $ | 15.11 | ||||||
Operating data by quarter | ||||||||||||||||
Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||
(In thousands, except for per share amounts) | ||||||||||||||||
Net interest income | $ | 25,680 | $ | 26,989 | $ | 27,471 | $ | 30,181 | $ | 30,951 | ||||||
Provision (benefit) for credit losses | 2,205 | 1,350 | 622 | (500 | ) | - | ||||||||||
Non-interest income (loss) | 1,406 | 1,118 | (1,664 | ) | 1,062 | 1,446 | ||||||||||
Non-interest expense | 15,463 | 14,706 | 13,854 | 16,037 | 13,453 | |||||||||||
Income tax expense | 2,707 | 3,447 | 3,225 | 3,634 | 5,552 | |||||||||||
Net income | $ | 6,711 | $ | 8,604 | $ | 8,106 | $ | 12,072 | $ | 13,392 | ||||||
Net income per diluted share | $ | 0.39 | $ | 0.50 | $ | 0.46 | $ | 0.69 | $ | 0.76 | ||||||
Common Dividends declared per share | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | ||||||
Financial Ratios(3) | ||||||||||||||||
Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||
Return on average assets | 0.70 | % | 0.90 | % | 0.90 | % | 1.46 | % | 1.74 | % | ||||||
Return on average stockholders’ equity | 8.92 | % | 11.57 | % | 11.05 | % | 16.99 | % | 19.42 | % | ||||||
Net interest margin | 2.78 | % | 2.92 | % | 3.15 | % | 3.76 | % | 4.18 | % | ||||||
Stockholders’ equity to total assets | 7.97 | % | 7.74 | % | 7.91 | % | 8.21 | % | 8.66 | % | ||||||
Efficiency Ratio4 | 57.09 | % | 52.32 | % | 53.68 | % | 51.33 | % | 41.53 | % | ||||||
Asset Quality Ratios | ||||||||||||||||
Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||
(In thousands, except for ratio %) | ||||||||||||||||
Non-Accrual Loans | $ | 7,931 | $ | 5,696 | $ | 5,058 | $ | 5,109 | $ | 8,505 | ||||||
Non-Accrual Loans as a % of Total Loans | 0.24 | % | 0.17 | % | 0.16 | % | 0.17 | % | 0.30 | % | ||||||
ACL as % of Non-Accrual Loans | 402.4 | % | 530.3 | % | 571.0 | % | 633.6 | % | 390.3 | % | ||||||
Individually Analyzed Loans | 35,868 | 28,250 | 17,585 | 28,272 | 40,524 | |||||||||||
Classified Loans | 42,807 | 28,250 | 17,585 | 17,816 | 30,180 | |||||||||||
(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.” | ||||||||||||||||
Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||
(In thousands) | ||||||||||||||||
Residential one-to-four family | $ | 251,845 | $ | 250,345 | $ | 246,683 | $ | 250,123 | $ | 242,238 | ||||||
Commercial and multi-family | 2,444,887 | 2,490,883 | 2,466,932 | 2,345,229 | 2,164,320 | |||||||||||
Construction | 185,202 | 179,156 | 162,553 | 144,931 | 153,103 | |||||||||||
Commercial business | 370,512 | 368,948 | 327,598 | 282,007 | 205,661 | |||||||||||
Home equity | 66,046 | 61,595 | 58,822 | 56,888 | 56,064 | |||||||||||
Consumer | 3,647 | 3,994 | 3,383 | 3,240 | 2,545 | |||||||||||
$ | 3,322,139 | $ | 3,354,921 | $ | 3,265,971 | $ | 3,082,418 | $ | 2,823,931 | |||||||
Less: | ||||||||||||||||
Deferred loan fees, net | (4,498 | ) | (4,995 | ) | (5,225 | ) | (4,714 | ) | (3,721 | ) | ||||||
Allowance for credit losses | (31,914 | ) | (30,205 | ) | (28,882 | ) | (32,373 | ) | (33,195 | ) | ||||||
Total loans, net | $ | 3,285,727 | $ | 3,319,721 | $ | 3,231,864 | $ | 3,045,331 | $ | 2,787,015 | ||||||
Non-Accruing Loans in Portfolio by quarter | ||||||||||||||||
Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||
(In thousands) | ||||||||||||||||
Residential one-to-four family | $ | 178 | $ | 178 | $ | 237 | $ | 243 | $ | 263 | ||||||
Commercial and multi-family | 3,267 | - | 340 | 346 | 757 | |||||||||||
Construction | 2,886 | 4,145 | 3,217 | 3,180 | 3,180 | |||||||||||
Commercial business | 1,600 | 1,373 | 1,264 | 1,340 | 4,305 | |||||||||||
Home equity | - | - | - | - | - | |||||||||||
Total: | $ | 7,931 | $ | 5,696 | $ | 5,058 | $ | 5,109 | $ | 8,505 | ||||||
Distribution of Deposits by quarter | ||||||||||||||||
Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||
(In thousands) | ||||||||||||||||
Demand: | ||||||||||||||||
Non-Interest Bearing | $ | 523,912 | $ | 620,509 | $ | 604,935 | $ | 613,910 | $ | 610,425 | ||||||
Interest Bearing | 574,577 | 714,420 | 686,576 | 757,614 | 726,012 | |||||||||||
Money Market | 348,732 | 328,543 | 361,558 | 305,556 | 370,353 | |||||||||||
Sub-total: | $ | 1,447,221 | $ | 1,663,472 | $ | 1,653,069 | $ | 1,677,080 | $ | 1,706,790 | ||||||
Savings and Club | 293,962 | 307,435 | 319,131 | 329,753 | 338,864 | |||||||||||
Certificates of Deposit | 1,078,373 | 914,814 | 895,009 | 804,774 | 667,291 | |||||||||||
Total Deposits: | $ | 2,819,556 | $ | 2,885,721 | $ | 2,867,209 | $ | 2,811,607 | $ | 2,712,945 | ||||||
Reconciliation of GAAP to Non-GAAP Financial Measures by quarter | ||||||||||||||||
Tangible Book Value per Share | ||||||||||||||||
Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Total Stockholders’ Equity | $ | 303,636 | $ | 299,623 | $ | 297,618 | $ | 291,254 | $ | 282,682 | ||||||
Less: goodwill | 5,252 | 5,252 | 5,252 | 5,252 | 5,252 | |||||||||||
Less: preferred stock | 20,783 | 21,003 | 21,003 | 21,003 | 21,003 | |||||||||||
Total tangible common stockholders’ equity | 277,601 | 273,368 | 271,363 | 264,999 | 256,427 | |||||||||||
Shares common shares outstanding | 16,848 | 16,788 | 16,884 | 16,931 | 16,974 | |||||||||||
Book value per common share | $ | 16.79 | $ | 16.60 | $ | 16.38 | $ | 15.96 | $ | 15.42 | ||||||
Tangible book value per common share | $ | 16.48 | $ | 16.28 | $ | 16.07 | $ | 15.65 | $ | 15.11 | ||||||
Efficiency Ratios | ||||||||||||||||
Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||
(In thousands, except for ratio %) | ||||||||||||||||
Net interest income | $ | 25,680 | $ | 26,989 | $ | 27,471 | $ | 30,181 | $ | 30,951 | ||||||
Non-interest income (loss) | 1,406 | 1,118 | (1,664 | ) | 1,062 | 1,446 | ||||||||||
Total income | 27,086 | 28,107 | 25,807 | 31,243 | 32,397 | |||||||||||
Non-interest expense | 15,463 | 14,706 | 13,854 | 16,037 | 13,453 | |||||||||||
Efficiency Ratio | 57.09% | 52.32% | 53.68% | 51.33% | 41.53% |
CONTACT: | |
PRESIDENT & CEO | |
(201) 823-0700 |
Source:
2023 GlobeNewswire, Inc., source