BCB Bancorp, Inc. Reports Record Net Income of $34.2 Million in 2021 and Earns $10.8 Million in Fourth Quarter 2021; Quarterly Cash Dividend is $0.16 Per Share

BAYONNE, N.J., Jan. 26, 2022 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported that its net income for the year ended December 31, 2021 increased 64.2 percent to $34.2 million, the highest annual earnings in the Company’s history, compared with $20.9 million for 2020. Earnings per diluted share for 2021 were $1.92 as compared to $1.14 for 2020. For the fourth quarter of 2021, net income was $10.8 million, a 29.2 percent increase compared to $8.3 million in the third quarter of 2021, and a 47.3 percent increase compared to $7.3 million in the fourth quarter of 2020. Earnings per diluted share for the fourth quarter of 2021 were $0.61, compared to $0.47 in the preceding quarter and $0.41 in the fourth quarter of 2020.

As the Company previously announced, its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable February 15, 2022, to common shareholders of record on February 1, 2022.

“Our strong earnings for the fourth quarter and Company-record profits for the year 2021, were a direct result of the dedication and effort of our employees, who continue to work to meet the needs of our community,” stated Thomas Coughlin, President and Chief Executive Officer. “Operating results for the fourth quarter of 2021 reflect continued net interest income expansion and strong asset quality metrics. Our strategy of managing our funding costs helped to expand our net interest margin by nine basis points during the fourth quarter of 2021 from the fourth quarter a year ago. Additionally, our performance metrics continue to improve with an annualized return on average assets of 1.42 percent, and an annualized return on average equity of 16.3 percent for the fourth quarter. We successfully executed our 2021 strategy of maintaining a flat loan portfolio, proactively managing our funding costs, and holding a steady yield on loans receivable. We are operating from a position of strength as we enter 2022, where we plan to capitalize on anticipated strong loan demand in the markets we serve coupled with the potential for a rising rate environment.

“We recorded a credit of $985,000 instead of a provision for loan losses during the fourth quarter, as a result of the continued solid performance of our loan portfolio during the current quarter and economic improvements in our markets. This compared to a $1.9 million provision for loan losses in the fourth quarter a year ago. Our total non-accrual loans decreased to $14.9 million at December 31, 2021 from $16.4 million at December 31, 2020, while our level of total impaired and classified loans improved to $49.4 million and $39.2 million from $83.2 million and $68.6 million, respectively, at December 31, 2020. We believe we are well-positioned for future growth, and that our reserve levels are sufficient to cover potential loan losses stemming from the pandemic, having established credit loss reserves to total loans of 1.58% at December 31, 2021.”

Executive Summary

• Net interest margin was 3.44 percent for the fourth quarter of 2021, compared to 3.46 percent for the third quarter of 2021, and 3.35 percent for the fourth quarter of 2020.
  • Total yield on interest-earning assets decreased 7 basis points to 3.88 percent for the fourth quarter of 2021, compared to 3.95 percent for the third quarter of 2021, and decreased 30 basis points from 4.18 percent for the fourth quarter of 2020.
  • Total cost of interest-bearing liabilities decreased 7 basis points to 0.59 percent for the fourth quarter of 2021, compared to 0.66 percent for the third quarter of 2021, and decreased 45 basis points from 1.04 percent for the fourth quarter of 2020.
• The efficiency ratio for the fourth quarter improved to 49.4 percent compared to 52.2 percent in the prior quarter, and 54.3 percent in the fourth quarter of 2020.
• The return on average assets ratio for the fourth quarter improved to 1.42 percent compared to 1.13 percent in the prior quarter, and 1.03 percent in the fourth quarter of 2020.
• The return on average equity ratio for the fourth quarter improved to 16.3 percent compared to 12.8 percent in the prior quarter, and 11.9 percent in the fourth quarter of 2020.
• The provision for loan losses decreased by $2.9 million, to a credit of $985,000 for the fourth quarter of 2021, compared to a provision for loan losses of $1.9 million for the fourth quarter of 2020; this decrease was primarily due to factors related to improved economic conditions related to the COVID-19 pandemic. The 2021 fourth quarter credit for loan losses constituted a $1.7 million improvement compared to a provision for loan losses of $680,000 for the third quarter of 2021.
• Allowance for loan losses as a percentage of non-accrual loans was 249.3 percent at December 31, 2021, compared to 184.1 percent for the prior quarter and 205.2 percent at December 31, 2020, as total non-accrual loans decreased to $14.9 million at December 31, 2021 from $20.7 million for the prior quarter and $16.4 million at December 31, 2020.
• Total deposits were $2.561 billion at December 31, 2021, up from $2.318 billion at the beginning of the year.
  

Balance Sheet Review

Total assets increased by $146.5 million, or 5.2 percent, to $2.968 billion at December 31, 2021, from $2.821 billion at December 31, 2020. The increase in total assets was mainly related to increases in total cash and cash equivalents.

Total cash and cash equivalents increased by $150.4 million, or 57.6 percent, to $411.6 million at December 31, 2021 from $261.2 million at December 31, 2020. This increase was primarily due to an increase in deposits, partly offset by net repayments of borrowings.

Loans receivable, net, increased by $9.9 million, or 0.43 percent, to $2.305 billion at December 31, 2021 from $2.295 billion at December 31, 2020. Total loan increases for 2021 included increases of $29.3 million in commercial real estate and multi-family loans, $6.7 million in commercial business loans, and $2.8 million in consumer loans, partly offset by decreases of $19.9 million in residential one-to-four family loans, $3.3 million in home equity loans, and $2.2 million in construction loans. The allowance for loan losses increased $3.5 million to $37.1 million, or 249.3 percent of non-accruing loans and 1.58 percent of gross loans, at December 31, 2021 as compared to an allowance for loan losses of $33.6 million, or 205.2 percent of non-accruing loans and 1.44 percent of gross loans, at December 31, 2020.

Total investment securities decreased by $7.1 million, or 6.0 percent, to $110.4 million at December 31, 2021 from $117.5 million at December 31, 2020, representing repayments, calls and maturities, partly offset by purchases of $26.1 million.

Deposit liabilities increased by $243.4 million, or 10.5 percent, to $2.561 billion at December 31, 2021 from $2.318 billion at December 31, 2020. The increase in deposit liabilities mainly related to the recent payments to individuals under the American Rescue Plan Act of 2021, adopted in March 2021 to provide additional relief for individuals and businesses affected by the coronavirus pandemic, and proceeds from the second round of Paycheck Protection Program (“PPP”) loans. Total increases for 2021 included $186.1 million in non-interest-bearing deposit accounts, $54.4 million in NOW deposit accounts, $32.0 million in savings and club accounts, and $21.9 million in money market checking accounts. The increase in deposits was partly offset by a decrease of $51.0 million in certificates of deposit, including listing service and brokered deposit accounts.

Debt obligations decreased by $119.2 million, or 52.2 percent, to $109.0 million at December 31, 2021 from $228.2 million at December 31, 2020. In 2021, the Company opted to extinguish $115.0 million in FHLB advances which held a weighted average rate of 1.60%. The advances were originally set to mature in 2021 through 2024. The effect of the extinguishment of the debt reduced the weighted average cost of FHLB borrowings by approximately 16 basis points on an annualized basis. The related expense for the extinguishment of this debt is included in noninterest expense. The weighted average interest rate of FHLB advances was 1.39 percent at December 31, 2021 and 1.66 percent at December 31, 2020. The fixed interest rate of our subordinated debt balances was 5.625 percent at December 31, 2021 and December 31, 2020.

Stockholders’ equity increased by $24.8 million, or 10.0 percent, to $274.0 million at December 31, 2021 from $249.2 million at December 31, 2020. The increase was primarily attributable to the increase in retained earnings of $22.8 million, or 39.1 percent, to $81.2 million at December 31, 2021 from $58.3 million at December 31, 2020, related to the effect of net income less dividends paid for the twelve months ended December 31, 2021.

Fourth Quarter 2021 Income Statement Review

Net income was $10.8 million for the fourth quarter ended December 31, 2021 and $7.3 million for the fourth quarter ended December 31, 2020. The increase was the result of decreases in total interest expense, the provision for loan losses and non-interest expense, which were partly offset by decreases in non-interest income and an increase in the income tax provision for the fourth quarter of 2021 as compared with the fourth quarter of 2020.

Net interest income increased by $2.4 million, or 10.6 percent, to $25.2 million for the fourth quarter of 2021 from $22.8 million for the fourth quarter of 2020. The increase in net interest income resulted from a $2.4 million decrease in interest expense.

Interest income was unchanged at $28.3 million for the fourth quarter of 2021 from the fourth quarter of 2020. The average balance of interest-earning assets increased $211.0 million, or 7.8 percent, to $2.925 billion for the fourth quarter of 2021 from $2.714 billion for the fourth quarter of 2020, while the average yield decreased 30 basis points to 3.88 percent for the fourth quarter of 2021 from 4.18 percent for the fourth quarter of 2020. Interest income on loans for the fourth quarter of 2021 also included $165,000 of amortization of purchase credit fair value adjustments related to a prior acquisition, which added approximately two basis points to the average yield on interest earning assets.

Interest expense decreased by $2.4 million, or 42.8 percent, to $3.2 million for the fourth quarter of 2021 from $5.6 million for the fourth quarter of 2020. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 45 basis points to 0.59 percent for the fourth quarter of 2021 from 1.04 percent for the fourth quarter of 2020, while the average balance of interest-bearing liabilities showed little change. The decrease in the average cost of funds primarily resulted from the continued low interest rate environment and a continued focus on managing funding costs.

The net interest margin was 3.44 percent for the fourth quarter of 2021, compared to 3.35 percent for the fourth quarter of 2020. The increase in the net interest margin compared to the fourth quarter of 2020 was the result of the low interest rate environment attributable to the COVID-19 pandemic. Management has been proactive in managing the Company’s cost of funds and has significantly decreased the average cost of total interest-bearing liabilities, while improving the average yield on interest-earning assets for the fourth quarter of 2021 compared to the fourth quarter of 2020. The decrease in cost of funds highlights management’s efforts to maintain a strong net interest margin.

The provision for loan losses decreased by $2.9 million, to a credit of $985,000 for the fourth quarter of 2021 from a provision of $1.9 million for the fourth quarter of 2020, primarily due to improved COVID-19 related economic metrics. During the fourth quarter of 2021, the Company experienced $52,000 in net chargeoffs compared to $35,000 in the fourth quarter of 2020. The Bank had non-accrual loans totaling $14.9 million, or 0.64 percent, of gross loans at December 31, 2021 as compared to $16.4 million, or 0.70 percent of gross loans at December 31, 2020. The allowance for loan losses was $37.1 million, or 1.58 percent of gross loans at December 31, 2021, and $33.6 million, or 1.44 percent of gross loans at December 31, 2020. Management believes that the allowance for loan losses was adequate at December 31, 2021 and December 31, 2020.

Noninterest income decreased by $1.1 million, or 30.3 percent, to $2.6 million for the fourth quarter of 2021 from $3.7 million for fourth quarter of 2020. The decrease in total noninterest income was mainly related a decrease in the realized and unrealized gains on equity securities of $819,000, a decrease in the gain on sale of securities and a decrease in the gains on sales of loans, partly offset by an increase in in other non-interest income. The realized and unrealized gains or losses on equity securities, the gains on the sales of securities and the gains on the sales of loans are based on market conditions, while the increase in other non-interest income related primarily to the reversal of certain liabilities previously recorded for IAB Bancorp, Inc. acquired loans that paid off this quarter.

Noninterest expense decreased by $671,000, or 4.7 percent, to $13.7 million for the fourth quarter of 2021 from $14.4 million for the fourth quarter of 2020. Salaries and employee benefits expense increased by $382,000, or 5.9 percent, to $6.8 million for the fourth quarter of 2021 from $6.5 million for the fourth quarter of 2020. The increase related to normal compensation increases and costs related to a new supplemental executive retirement plan implemented in the fourth quarter of 2021. The number of full-time equivalent employees for the fourth quarter of 2021 was 292, as compared to 302 for the same period in 2020. Occupancy and equipment expense decreased by $262,000, or 8.7 percent, to $2.8 million for the fourth quarter of 2021 from $3.0 million for the fourth quarter of 2020, mainly related to a higher level of building sanitization costs associated with the COVID-19 pandemic in the prior-year period. Other expenses decreased by $460,000, or 35.8 percent, to $824,000 for the fourth quarter of 2021 from $1.3 million for the fourth quarter of 2020, mainly related to costs associated with branch closures and servicing PPP loans in the prior-year period. The Company recognized expenses of $526,000 for losses on extinguishment of debt for the fourth quarter of 2021, and $837,000 for the fourth quarter of 2020, related to the prepayment of higher-cost FHLB borrowings.

The income tax provision increased by $1.4 million, or 47.7 percent, to $4.3 million for the fourth quarter of 2021 from $2.9 million for the fourth quarter of 2020. The increase in the income tax provision was a result of higher taxable income for the fourth quarter of 2021 as compared with that same period for 2020. The consolidated effective tax rate was 28.5 percent for both periods.

Year-to-Date Income Statement Review

Net income increased by $13.4 million, or 64.2 percent, to $34.2 million for the year ended December 31, 2021 from $20.8 million for the year ended December 31, 2020. The increase in net income was primarily the result of decreases in total interest expense, the provision for loan losses and non-interest expense, partly offset by decreases in interest and non-interest income and an increase in the income tax provision for 2021 as compared to 2020.

Net interest income increased by $17.0 million, or 21.1 percent, to $97.4 million for the year of 2021 from $80.4 million for the year of 2020. The increase in net interest income resulted from a $17.8 million decrease in interest expense, partly offset by a decrease of $853,000 in interest income.

Interest income decreased by $853,000, or 0.8 percent, to $112.6 million for 2021 from $113.4 million for 2020. The decrease in interest income mainly related to a $1.9 million reduction in interest income from FHLB stock and other interest earning assets relating to a decrease in the average balance of FHLB stock and other interest-earning deposits of $24.8 million, or 6.2 percent, to $377.2 million for 2021 from $401.9 million for the year of 2020, as well as a decrease in the average rate on these funds of 46 basis points to 0.25 percent for the year of 2021 from 0.71 percent for the year of 2020. The decrease in the average balance of interest-earning deposits mainly relates to decreases in the average balances of deposits and FHLB advances. This decrease in interest income was partly offset by an increase in loan interest income due to an increase in the average balance of loans receivable of $8.0 million, or 0.3 percent, to $2.328 billion for the year of 2021 from $2.320 billion for the year of 2020, and the average rate on loans increased one basis point. Interest income on investment securities also increased, mainly related to an increase in the average rate of 73 basis points to 3.64 percent for the year of 2021 from 2.91 percent for the year of 2020, relating to the purchase of higher yielding securities in the current year period. Interest income on loans for the year ended December 31, 2021 also included $876,000 of amortization of purchase credit fair value adjustments related to a prior acquisition, which added approximately three basis points to the average yield on interest earning assets.

Interest expense decreased by $17.8 million, or 54.0 percent, to $15.2 million for the year ended December 31, 2021 from $33.0 million for the year ended December 31, 2020. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 73 basis points to 0.71 percent for the year of 2021 from 1.44 percent for the year of 2020, as well as a decrease in the average balance of interest-bearing liabilities of $154.6 million, or 6.7 percent, to $2.138 billion for the year of 2021 from $2.292 billion for the year of 2020. The decrease in the average cost of funds primarily resulted from the declining interest rate environment and an increased focus on managing funding costs. The decrease in the average balance of interest-bearing liabilities primarily resulted from the Company’s strategy of continued deleveraging. The Company also opted to extinguish $115.0 million of FHLB advances over the 12-month period ended December 31, 2021, which held an average rate of 1.60%, compared to $47.0 million of FHLB advances over the 12-month period ended December 31, 2020, which held an average rate of 2.24%. The related non-recurring expense for the extinguishment of this debt was included in noninterest expense.

Net interest margin was 3.46 percent for the year ended December 31, 2021 and 2.83 percent for the year ended December 31, 2020. The increase in the net interest margin compared to the prior-year period was the result of the volatile financial markets in 2020 attributable to the COVID-19 pandemic, and the current low interest rate environment. Management has been proactive in managing the Company’s cost of funds and has significantly decreased the average cost of total interest-bearing liabilities, while improving the average yield on interest-earning assets for the year of 2021 compared to the year of 2020.

The provision for loan losses decreased by $5.6 million to $3.9 million for the year ended December 31, 2021 from $9.5 million for the year ended December 31, 2020, primarily due to improved COVID-19 related economic metrics compared to the prior year period. During the year ended December 31, 2021, the Company experienced $375,000 in net charge offs compared to $465,000 in net recoveries for the year ended December 31, 2020. The Bank had non-accrual loans totaling $14.9 million, or 0.64 percent, of gross loans at December 31, 2021 as compared to $16.4 million, or 0.70 percent, of gross loans at December 31, 2020. The allowance for loan losses was $37.1 million, or 1.58 percent of gross loans at December 31, 2021, and $33.6 million, or 1.44 percent of gross loans at December 31, 2020. Management believes that the allowance for loan losses was adequate at December 31, 2021 and December 31, 2020.

Total noninterest income decreased by $3.8 million, or 30.4 percent, to $8.7 million for the year ended December 31, 2021 from $12.5 million for the year ended December 31, 2020. The decrease in total noninterest income was mainly related to a decrease in the gain on sale of premises of $4.0 million, a decrease in realized and unrealized gains on equity securities of $1.6 million and a decrease in the gain on sale of investment securities of $964,000 in the current period compared to the same period in the prior year. Partly offsetting these decreases in noninterest income was an increase in BOLI income of $1.9 million and an increase in fees and service charges of $1.0 million in 2021 compared to the prior year. The decreased gain on sale of premises related to the completion of a sale/leaseback of certain offices that the Company sold to a private investor group in December, 2020. The realized and unrealized gains on equity investments are based on market conditions. The increased BOLI income relates to an initial purchase of $60.0 million of BOLI in the fourth quarter of 2020 and an additional purchase of $8.5 million in the first quarter of 2021. The higher fees and service charges related primarily to $495,000 of referral fees for PPP loans in the current period.

Total noninterest expense was unchanged at $54.0 million for the years ended December 31, 2021 and December 31, 2020. Salaries and employee benefits expense increased by $494,000, or 1.9 percent, to $26.4 million for the year ended December 31, 2021 from $25.9 million for the same period in 2020. Excluding the $1.3 million of costs deferred for PPP loans in the prior-year period, salaries and benefits expense decreased $806,000 million, due to fewer full-time equivalent employees, partly offset by normal compensation increases. The costs deferred in the prior-year period represented salaries and benefit costs associated with direct PPP loan origination costs, which were amortized over the life of the loan. The number of full-time equivalent employees for the year ended December 31, 2021 was 296, as compared with 329 for the same period in 2020. Occupancy and equipment expense decreased by $388,000, or 3.3 percent, to $11.4 million for the year ended December 31, 2021 from $11.7 million for the year ended December 31, 2020, largely related to the reduction of building sanitization costs associated with the COVID-19 pandemic in the prior-year period and the closure of two of the Company’s branch offices in the fourth quarter of 2020. Data processing and communication expenses increased by $348,000, or 6.1 percent, to $6.0 million for the year ended December 31, 2021 from $5.7 million for the year ended December 31, 2020, largely attributable to additional system applications. Director fees decreased by $505,000, or 32.6 percent, to $1.0 million for the year ended December 31, 2021 from $1.5 million for the year ended December 31, 2020, as a result of lower amortization expense for stock option and restricted stock awards in the current period. Advertising and promotion expenses decreased by $379,000, or 40.6 percent, to $554,000 for the year ended December 31, 2021 from $933,000 for the year ended December 31, 2020, as management curtailed certain business promotion activities in the current period. The Company recognized expenses of $1.6 million for losses on extinguishment of debt for the year ended December 31, 2021, and $1.2 million for the year ended December 31, 2020, related to the prepayment of higher-cost FHLB borrowings.

The income tax provision increased by $5.5 million, or 63.6 percent, to $14.0 million for the year ended December 31, 2021 from $8.5 million for the year ended December 31, 2020. The increase in the income tax provision was a result of higher taxable income for the year ended December 31, 2021 as compared to that same period for 2020. The consolidated effective tax rate for the year ended December 31, 2021 was 29.0 percent compared to 29.1 percent for the year ended December 31, 2020.

Asset Quality

During the fourth quarter of 2021, the Company recognized $52,000 in net charge offs, compared to $35,000 for the fourth quarter of 2020.

The provision for loan losses decreased by $2.9 million, to a credit of $985,000 for the fourth quarter of 2021, compared to a provision of $1.9 million for the fourth quarter of 2020. The decrease was primarily due to improved COVID-19 related economic metrics. The Bank had non-accrual loans totaling $14.9 million, or 0.64 percent, of gross loans at December 31, 2021, as compared to $16.4 million, or 0.70 percent, of gross loans at December 31, 2020.

Performing troubled debt restructured (“TDR”) loans that were not included in nonaccrual loans at December 31, 2021, were $12.4 million, compared to $13.8 million at December 31, 2020. Borrowers who are in financial difficulty and who have been granted concessions (excluding COVID-19 modifications) that may include interest rate reductions, term extensions, or payment alterations, are categorized as TDR loans.

The allowance for loan losses was $37.1 million, or 1.58 percent of gross loans at December 31, 2021, and $33.6 million, or 1.44 percent of gross loans at December 31, 2020. The allowance for loan losses was 249.3 percent of non-accrual loans at December 31, 2021, and 205.2 percent of non-accrual loans at December 31, 2020.

The COVID-19 pandemic has caused disruption to the global economy, but the extent and duration of the disruption remains uncertain. Management will continue to monitor any activity for loan deferment requests and delinquencies on a regular basis.

COVID-19 Response

With the global outbreak of COVID-19, the Company remains focused on protecting the health and well-being of its employees and the communities in which it operates while assuring the continuity of its business operations. 

The Company activated its dedicated pandemic team that proactively implemented its business continuity plans and has taken a variety of measures to ensure the ongoing availability of services, while taking health and safety measures, including enhanced cleaning and hygiene protocols in all of its facilities and remote work policies, where possible. To date, as a result of these business continuity measures, the Company has not experienced significant disruptions in its operations. 

• Operational Initiatives  
  • Management meets on an as-needed basis and actively monitors guidance released by regulators, banking associations as well as state and local government.
  • Most employees have returned to work, however social distancing is still encouraged for those that are unvaccinated.
  • Barriers are in place in branches and back offices to provide protection.
  • Branch and operational offices are cleaned and sanitized as needed and employees have access to masks, gloves and disinfectant.
  • Management provides updates to employees as needed.
  • The Call Center is open seven days a week to assist with customer inquiries.
  • Branch offices are open; however, customers have the ability to make an appointment if they choose. The Bank is encouraging customers to utilize the ATM, drive-through, mobile and electronic banking services whenever possible.
  • The Bank worked with a local provider throughout the year to have the vaccine administered voluntarily to its employees at one of the Bank’s locations.
    
    
• Allowance for Loan Losses (“ALLL”)
  
  
  • The Bank lowered its loan loss reserves through a $985,000 credit in loan loss provisions for the fourth quarter of 2021, as compared to $1.9 million of provision expense for the same period last year. The Bank considered qualitative factors, such as changes in underwriting policies, current economic conditions, delinquency statistics, the adequacy of the underlying collateral and the financial strength of borrowers in arriving at its loan loss provision. All of these factors are likely to be affected by the COVID-19 pandemic. Loan categories for specific business types were stressed due to rising or elevated levels of delinquency within those market sectors (restaurants, mixed use/office space, and commercial condos) to determine the potential for collateral shortfalls. At December 31, 2021 the stress tests resulted in collateral shortfalls and costs associated with foreclosure that were lower than the previous three quarters by approximately $1.0 million. The impact of COVID-19 will likely continue to be felt over the next several quarters. Adjustments to the ALLL may be required as the full impact of COVID-19 on the borrowers’ capacity to make payments and the value of the underlying collateral becomes known.

Loan Deferments

• The banking regulatory agencies, through an Interagency Statement dated April 7, 2020, encouraged financial institutions to work prudently with borrowers who request loan modifications or deferrals as a result of COVID-19. The Bank did so in 2020, but now has no deferred loans within its portfolio.
• The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provided over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. Under Section 4013 of the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. A financial institution can then suspend the requirements under Generally Accepted Accounting Principles for loan modifications related to COVID-19 that would otherwise be categorized as a TDR, and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes.
• The Bank has worked with customers that previously requested loan deferments and entered into COVID-19 modifications. The loan balances for these customers at December 31, 2021 was approximately $21.0 million. The modifications generally provide a short-term, interest-only period. The Bank does not believe that these modified loans will result in losses, so long as the borrowers' representation of cash flows is realized. Borrowers that have requested modifications with less definitive cash flow projections have been denied and are being analyzed as part of the loan stress testing and Allowance for Loan Loss calculation.

• Paycheck Protection Program (PPP)  
  
  • The Bank partnered with The Loan Source, Inc. and NEWITY and recognized $495,000 in referral fees for the second round of PPP loans for the year ended December 31, 2021.

• IT Changes
  • To protect the well-being of our staff and customers, the Company has set up resources for some employees to work from home. To facilitate the move, we allocated laptop computers to staff and enhanced our ability to access the network offsite. We have taken additional steps to minimize the increased risk of security breaches (including privacy breaches and cyber-attacks), given the increased number of employees working remotely.

• Liquidity and Capital Resources
  • The Company was well positioned with adequate levels of cash and liquid assets as of December 31, 2021, as well as wholesale borrowing capacity of over $880 million. At December 31, 2021, the Company’s equity to assets ratio was 9.23 percent and the Bank is considered “well capitalized” under its regulatory requirements. The Company will continue to monitor the effects of COVID-19 in determining future cash dividends and any requirement for additional capital each quarter.

About BCB Bancorp, Inc.

Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has 29 branch offices in Bayonne, Carteret, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and three branches in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.

Forward-Looking Statements

This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

In addition to factors previously disclosed in the 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 the Bank’s products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and actions of governmental agencies and legislative and regulatory actions and reforms.

As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company could be subject to any of the following additional risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:

• demand for our products and services may decline, making it difficult to grow assets and income;
• our allowance for loan losses may have to be increased if borrowers experience financial difficulties beyond any forbearance periods, which will adversely affect our net income;
• the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us;
• as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income;
• our cyber security risks are increased as the result of an increase in the number of employees working remotely;
• we rely on fourth party vendors for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have an adverse effect on us; and
• civil unrest could occur in the communities that the Company serves.
  

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, 2021			September 30, 2021			December 31, 2020			Dec 31, 2021 vs. Sep 30, 2021			Dec 31, 2021 vs. Dec 31, 2020
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	26,987		$	26,922		$	27,090		0.2	%		-0.4	%
Mortgage-backed securities		148			159			298		-6.9	%		-50.3	%
Other investment securities		929			814			743		14.1	%		25.0	%
FHLB stock and other interest earning assets		286			249			204		14.9	%		40.2	%
Total interest and dividend income		28,350			28,144			28,335		0.7	%		0.1	%
Interest expense:
Deposits:
Demand		928			1,059			1,220		-12.4	%		-23.9	%
Savings and club		129			131			116		-1.5	%		11.2	%
Certificates of deposit		1,185			1,344			2,702		-11.8	%		-56.1	%
		2,242			2,534			4,038		-11.5	%		-44.5	%
Borrowings		954			997			1,546		-4.3	%		-38.3	%
Total interest expense		3,196			3,531			5,584		-9.5	%		-42.8	%
Net interest income		25,154			24,613			22,751		2.2	%		10.6	%
Provision (credit) for loan losses		(985	)		680			1,915		-244.9	%		-151.4	%
Net interest income after provision (credit) for loan losses		26,139			23,933			20,836		9.2	%		25.5	%
Non-interest income:
Fees and service charges		1,119			713			805		56.9	%		39.0	%
Gain on sales of loans		92			83			600		10.8	%		-84.7	%
Gain on sale of impaired loans		-			-			26		0.0	%		0.0	%
Gain on sale of investment securities		-			-			658		0			-100.0	%
Realized and unrealized gain (loss) on equity investments		151			(307	)		970		0.0	%		0.0	%
BOLI income		757			765			648		-1.0	%		16.8	%
Gain (loss) on sales of other real estate owned		-			11			(38	)	0.0	%		-100.0	%
Other		489			52			75		840.4	%		552.0	%
Total non-interest income		2,608			1,317			3,744		98.0	%		-30.3	%
Non-interest expense:
Salaries and employee benefits		6,842			6,511			6,460		5.1	%		5.9	%
Occupancy and equipment		2,756			2,983			3,018		-7.6	%		-8.7	%
Data processing and communications		1,531			1,511			1,419		1.3	%		7.9	%
Professional fees		473			543			393		-12.9	%		20.4	%
Director fees		253			233			354		8.6	%		-28.5	%
Regulatory assessment fees		317			303			461		4.6	%		-31.2	%
Advertising and promotions		162			200			109		-19.0	%		48.6	%
Other real estate owned, net		23			(11	)		43		-309.1	%		-46.5	%
Loss from extinguishment of debt		526			337			837		56.1	%		-37.2	%
Other		824			918			1,284		-10.2	%		-35.8	%
Total non-interest expense		13,707			13,528			14,378		1.3	%		-4.7	%
Income before income tax provision		15,040			11,722			10,202		28.3	%		47.4	%
Income tax provision		4,289			3,400			2,904		26.1	%		47.7	%
Net Income		10,751			8,322			7,298		29.2	%		47.3	%
Preferred stock dividends		308			284			286		8.5	%		7.7	%
Net Income available to common stockholders	$	10,443		$	8,038		$	7,012		29.9	%		48.9	%
Net Income per common share-basic and diluted
Basic	$	0.61		$	0.47		$	0.41		30.7	%		49.8	%
Diluted	$	0.61		$	0.47		$	0.41		29.0	%		47.8	%
Weighted average number of common shares outstanding
Basic		16,998			17,019			17,094		-0.1	%		-0.6	%
Diluted		17,230			17,222			17,104		0.0	%		0.7	%

	Statements of Income - Years Ended,
	December 31, 2021			December 31, 2020			Dec 31, 2021 vs. Dec 31, 2020
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	107,660		$	107,153		0.5	%
Mortgage-backed securities		680			1,748		-61.1	%
Other investment securities		3,274			1,690		93.7	%
FHLB stock and other interest earning assets		959			2,835		-66.2	%
Total interest and dividend income		112,573			113,426		-0.8	%
Interest expense:
Deposits:
Demand		4,335			6,147		-29.5	%
Savings and club		505			440		14.8	%
Certificates of deposit		6,160			19,360		-68.2	%
		11,000			25,947		-57.6	%
Borrowings		4,180			7,069		-40.9	%
Total interest expense		15,180			33,016		-54.0	%
Net interest income		97,393			80,410		21.1	%
Provision for loan losses		3,855			9,441		-59.2	%
Net interest income after provision for loan losses		93,538			70,969		31.8	%
Non-interest income:
Fees and service charges		3,972			2,948		34.7	%
Gain on sales of loans		667			892		-25.2	%
(Loss) gain on sale of impaired loans		(64	)		26		-346.2	%
Gain on sale of investment securities		-			964		-100.0	%
Gain (loss) on sales of other real estate owned		11			(38	)	-128.9	%
Realized and unrealized gain on equity investments		147			1,790		-91.8	%
BOLI income		2,952			1,033		185.8	%
Gain on sale of premises		371			4,378		-91.5	%
Other		639			497		28.6	%
Total non-interest income		8,695			12,490		-30.4	%
Non-interest expense:
Salaries and employee benefits		26,410			25,916		1.9	%
Occupancy and equipment		11,360			11,748		-3.3	%
Data processing and communications		6,024			5,676		6.1	%
Professional fees		1,919			1,682		14.1	%
Director fees		1,043			1,548		-32.6	%
Regulatory assessments		1,310			1,344		-2.5	%
Advertising and promotions		554			933		-40.6	%
Other real estate owned, net		35			101		-65.3	%
Loss from extinguishment of debt		1,597			1,150		38.9	%
Other		3,723			3,938		-5.5	%
Total non-interest expense	$	53,975		$	54,036		-0.1	%
Income before income tax provision		48,258			29,423		64.0	%
Income tax provision		14,018			8,566		63.6	%
Net Income		34,240			20,857		64.2	%
Preferred stock dividends		1,160			1,300		-10.8	%
Net Income available to common stockholders	$	33,080		$	19,557		69.1	%
Net Income per common share-basic and diluted
Basic	$	1.94		$	1.14		70.1	%
Diluted	$	1.92		$	1.14		68.3	%
Weighted average number of common shares outstanding
Basic		17,063			17,210		-0.9	%
Diluted		17,239			17,226		0.1	%

Statements of Financial Condition	December 31, 2021			September 30, 2021			December 31, 2020			Dec 31, 2021 vs. Sep, 2021		Dec 31, 2021 vs. Dec 31, 2020
ASSETS	(In Thousands, Unaudited)
Cash and amounts due from depository institutions	$	9,606		$	8,569		$	23,201		12.1	%	-58.6	%
Interest-earning deposits		402,023			434,369			238,028		-7.4	%	68.9	%
Total cash and cash equivalents		411,629			442,938			261,229		-7.1	%	57.6	%
Interest-earning time deposits		735			735			735		-		-
Debt securities available for sale		85,186			82,603			99,756		3.1	%	-14.6	%
Equity investments		25,187			23,534			17,717		7.0	%	42.2	%
Loans held for sale		952			913			3,530		4.3	%	-73.0	%
Loans receivable, net of allowance for loan losses of $37,119, $38,156 and $33,639, respectively		2,304,942			2,289,854			2,295,021		0.7	%	0.4	%
Federal Home Loan Bank of New York stock, at cost		6,084			8,193			11,324		-25.7	%	-46.3	%
Premises and equipment, net		12,237			12,998			15,272		-5.9	%	-19.9	%
Accrued interest receivable		9,183			10,388			12,924		-11.6	%	-28.9	%
Other real estate owned		75			-			414		0.0	%	-81.9	%
Deferred income taxes		12,959			13,515			12,574		-4.1	%	3.1	%
Goodwill and other intangibles		5,431			5,445			5,488		-0.3	%	-1.0	%
Operating lease right-of-use asset		12,457			13,245			14,988		-5.9	%	-16.9	%
Bank-owned life insurance ("BOLI")		72,485			71,728			61,033		1.1	%	18.8	%
Other assets		7,986			7,698			9,011		3.7	%	-11.4	%
Total Assets	$	2,967,528		$	2,983,787		$	2,821,016		-0.5	%	5.2	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits	$	588,207		$	544,619		$	402,100		8.0	%	46.3	%
Interest bearing deposits		1,973,195			1,996,786			1,915,950		-1.2	%	3.0	%
Total deposits		2,561,402			2,541,405			2,318,050		0.8	%	10.5	%
FHLB advances		71,711			118,573			191,161		-39.5	%	-62.5	%
Subordinated debentures		37,275			37,217			37,042		0.2	%	0.6	%
Operating lease liability		12,752			13,533			15,224		-5.8	%	-16.2	%
Other liabilities		10,364			9,978			10,328		3.9	%	0.3	%
Total Liabilities		2,693,504			2,720,706			2,571,805		-1.0	%	4.7	%
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000 shares authorized		-			-			-
Additional paid-in capital preferred stock		28,923			25,723			25,723		12.4	%	12.4	%
Common stock: no par value, 40,000 shares authorized		-			-			-
Additional paid-in capital common stock		193,927			193,613			192,276		0.2	%	0.9	%
Retained earnings		81,171			73,388			58,335		10.6	%	39.1	%
Accumulated other comprehensive (loss) income		1,128			(214	)		(205	)	-627.1	%	-650.2	%
Treasury stock, at cost		(31,125	)		(29,429	)		(26,918	)	5.8	%	15.6	%
Total Stockholders' Equity		274,024			263,081			249,211		4.2	%	10.0	%
Total Liabilities and Stockholders' Equity	$	2,967,528		$	2,983,787		$	2,821,016		-0.5	%	5.2	%
Outstanding common shares		16,940			17,036			17,108

	Three Months Ended December 31,
		2021							2020
	Average Balance		Interest Earned/Paid		Average Yield/Rate (3)			Average Balance		Interest Earned/Paid		Average Yield/Rate (3)
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable	$	2,300,573	$	26,987	4.69	%		$	2,420,699	$	27,090	4.48	%
Investment Securities		108,700		1,077	3.96	%			124,435		1,041	3.35	%
FHLB stock and other interest-earning assets		515,788		286	0.22	%			168,954		204	0.48	%
Total Interest-earning assets		2,925,061		28,350	3.88	%			2,714,088		28,335	4.18	%
Non-interest-earning assets		102,632							113,952
Total assets	$	3,027,693						$	2,828,040
Interest-bearing liabilities:
Interest-bearing demand accounts	$	668,765	$	549	0.33	%		$	571,742	$	745	0.52	%
Money market accounts		345,721		379	0.44	%			319,365		475	0.59	%
Savings accounts		329,130		129	0.16	%			294,170		116	0.16	%
Certificates of Deposit		659,479		1,185	0.72	%			704,697		2,702	1.53	%
Total interest-bearing deposits		2,003,095		2,242	0.45	%			1,889,973		4,038	0.85	%
Borrowed funds		153,837		954	2.48	%			261,036		1,546	2.37	%
Total interest-bearing liabilities		2,156,932		3,196	0.59	%			2,151,009		5,584	1.04	%
Non-interest-bearing liabilities		606,132							432,391
Total liabilities		2,763,064							2,583,400
Stockholders' equity		264,629							244,640
Total liabilities and stockholders' equity	$	3,027,693						$	2,828,040
Net interest income			$	25,154						$	22,751
Net interest rate spread(1)					3.28	%						3.14	%
Net interest margin(2)					3.44	%						3.35	%
(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.

	Year Ended December 31,
		2021							2020
	Average Balance		Interest Earned/Paid		Average Yield/Rate			Average Balance		Interest Earned/Paid		Average Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable	$	2,327,781	$	107,660	4.63	%		$	2,319,750	$	107,153	4.62	%
Investment Securities		108,545		3,954	3.64	%			118,053		3,438	2.91	%
FHLB stock and other interest-earning assets		377,209		959	0.25	%			401,986		2,835	0.71	%
Total Interest-earning assets		2,813,535		112,573	4.00	%			2,839,789		113,426	3.99	%
Non-interest-earning assets		106,039							79,552
Total assets	$	2,919,574						$	2,919,341
Interest-bearing liabilities:
Interest-bearing demand accounts	$	637,671	$	2,657	0.42	%		$	486,251	$	3,050	0.63	%
Money market accounts		335,824		1,678	0.50	%			320,928		3,097	0.97	%
Savings accounts		317,301		505	0.16	%			276,785		440	0.16	%
Certificates of Deposit		673,233		6,160	0.92	%			931,606		19,360	2.08	%
Total interest-bearing deposits		1,964,029		11,000	0.56	%			2,015,570		25,947	1.29	%
Borrowed funds		173,341		4,180	2.41	%			276,405		7,069	2.56	%
Total interest-bearing liabilities		2,137,370		15,180	0.71	%			2,291,975		33,016	1.44	%
Non-interest-bearing liabilities		524,668							387,630
Total liabilities		2,662,038							2,679,605
Stockholders' equity		257,536							239,736
Total liabilities and stockholders' equity	$	2,919,574						$	2,919,341
Net interest income			$	97,393						$	80,410
Net interest rate spread(1)					3.29	%						2.55	%
Net interest margin(2)					3.46	%						2.83	%
(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 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020
	(In thousands, except book values)
Total assets	$	2,967,528		$	2,983,787		$	2,895,190		$	2,852,460		$	2,821,016
Cash and cash equivalents		411,629			442,938			328,257			296,938			261,229
Securities		110,373			106,137			104,384			111,860			117,473
Loans receivable, net		2,304,942			2,289,854			2,312,559			2,296,434			2,295,021
Deposits		2,561,402			2,541,405			2,445,814			2,404,135			2,318,050
Borrowings		108,986			155,790			165,595			170,399			228,203
Stockholders’ equity		274,024			263,081			258,524			253,454			249,211
Book value per common share1	$	14.47		$	13.93		$	13.63		$	13.30		$	13.06
Tangible book value per common share2	$	14.16		$	13.62		$	13.32		$	12.99		$	12.76
	Operating data by quarter
	Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020
	(In thousands, except for per share amounts)
Net interest income	$	25,154		$	24,613		$	24,064		$	23,562		$	22,751
Provision (credit ) for loan losses		(985	)		680			2,295			1,865			1,915
Non-interest income		2,608			1,317			2,820			1,950			3,744
Non-interest expense		13,707			13,528			13,157			13,583			14,378
Income tax expense		4,289			3,400			3,382			2,947			2,904
Net income	$	10,751		$	8,322		$	8,050		$	7,117		$	7,298
Net income per diluted share	$	0.61		$	0.47		$	0.45		$	0.40		$	0.41
Common Dividends declared per share	$	0.16		$	0.16		$	0.14		$	0.14		$	0.14
	Financial Ratios3
	Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020
Return on average assets		1.42	%		1.13	%		1.12	%		1.01	%		1.03	%
Return on average stockholder’s equity		16.25	%		12.84	%		12.60	%		11.37	%		11.93	%
Net interest margin		3.44	%		3.46	%		3.47	%		3.48	%		3.35	%
Stockholder’s equity to total assets		9.23	%		8.82	%		8.93	%		8.89	%		8.83	%
Efficiency Ratio4		49.37	%		52.17	%		48.94	%		53.24	%		54.27	%
	Asset Quality Ratios
	Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020
	(In thousands, except for ratio %)
Non-Accrual Loans	$	14,889		$	20,725		$	22,174		$	14,405		$	16,396
Non-Accrual Loans as a % of Total Loans		0.64	%		0.89	%		0.94	%		0.62	%		0.70	%
ALLL as % of Non-Accrual Loans		249.3	%		184.1	%		169.0	%		246.3	%		205.2	%
Impaired Loans		49,382			58,863			62,281			67,344			83,201
Classified Loans		39,157			48,547			51,926			56,178			68,580
(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
	Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020
	(In thousands)
Residential one-to-four family	$	224,534		$	224,330		$	229,365		$	234,375		$	244,369
Commercial and multi-family		1,720,174			1,739,976			1,714,848			1,700,113			1,690,836
Construction		153,904			149,076			181,312			167,224			155,967
Commercial business		191,139			161,416			172,129			177,340			184,357
Home equity		50,469			52,109			53,333			53,360			53,667
Consumer		3,717			2,730			459			851			822
	$	2,343,937		$	2,329,637		$	2,351,446		$	2,333,263		$	2,330,018
Less:
Deferred loan fees, net		(1,876	)		(1,627	)		(1,415	)		(1,352	)		(1,358	)
Allowance for loan loss		(37,119	)		(38,156	)		(37,472	)		(35,477	)		(33,639	)
Total loans, net	$	2,304,942		$	2,289,854		$	2,312,559		$	2,296,434		$	2,295,021
	Non-Accruing Loans in Portfolio by quarter
	Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020
	(In thousands)
Residential one-to-four family	$	282		$	455		$	464		$	701		$	1,736
Commercial and multi-family		8,601			13,322			14,673			7,962			8,721
Construction		2,847			2,787			2,787			-			-
Commercial business		3,132			4,128			4,216			5,307			5,383
Home equity		27			33			34			435			556
Total:	$	14,889		$	20,725		$	22,174		$	14,405		$	16,396

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
	Tangible Book Value per Share
	Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020
	(In thousands, except per share amounts)
Total Stockholders' Equity	$	274,024		$	263,081		$	258,524		$	253,454		$	249,211
Less: goodwill		5,252			5,252			5,252			5,253			5,253
Less: preferred stock		28,923			25,723			25,723			25,723			25,723
Total tangible common stockholders' equity		239,849			232,106			227,549			222,478			218,235
Shares common shares outstanding		16,940			17,036			17,077			17,121			17,108
Book value per common share	$	14.47		$	13.93		$	13.63		$	13.30		$	13.06
Tangible book value per common share	$	14.16		$	13.62		$	13.32		$	12.99		$	12.76
	Efficiency Ratios
	Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020
	(In thousands, except for ratio %)
Net interest income	$	25,154		$	24,613		$	24,064		$	23,562		$	22,751
Non-interest income		2,608			1,317			2,820			1,950			3,744
Total income		27,762			25,930			26,884			25,512			26,495
Non-interest expense		13,707			13,528			13,157			13,583			14,378
Efficiency Ratio		49.37	%		52.17	%		48.94	%		53.24	%		54.27	%

	Distribution of Deposits by quarter
	Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q4 2020
	(In thousands)
Demand:
Non-Interest Bearing	$	588,207	$	544,619	$	492,014	$	454,061	$	402,100
Interest Bearing		668,262		644,453		619,163		620,171		613,882
Money Market		337,126		351,508		344,512		335,440		315,208
Sub-total:	$	1,593,595	$	1,540,580	$	1,455,689	$	1,409,672	$	1,331,190
Savings and Club		329,724		326,807		316,244		311,259		297,765
Certificates of Deposit		638,083		674,018		673,881		683,204		689,095
Total Deposits:	$	2,561,402	$	2,541,405	$	2,445,814	$	2,404,135	$	2,318,050

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