Revenues Increased 29% Year-over-Year
Earnings Per Share Increased 223% Year-over-Year
Excluding the pre-tax impact of
Mr.
Highlights for the Third Quarter of 2020 Included:
- Linked quarter net interest margin (“NIM”) expansion of 6 basis points primarily driven by a 28 basis point linked quarter decrease in the cost of deposits;
- Strong growth in checking account balances. Compared to the third quarter of 2019, the sum of average non-interest-bearing checking account balances and average interest-bearing checking account balances for the third quarter of 2020 increased by 61.1% to
$894.1 million ; - The efficiency ratio declined to 49.0% in the third quarter of 2020;
- Total non-interest income increased by 83% on a year-over-year basis to
$6.1 million , driven by$1.5 million of customer-related loan level swap income,$0.8 million of income from the sale ofSmall Business Administration (“SBA”) loans, and$0.6 million from the sale of residential mortgage loans; - Capital levels remain strong; our tangible equity to tangible assets ratio was 9.73% at
September 30, 2020 (see “Non-GAAP Reconciliation” tables at the end of this news release). Excluding the impact of SBA Paycheck Protection Program (“PPP”) loans, the ratio would have been 10.22%; and - Non-performing assets declined by 19.2% on a linked quarter basis and represent only 0.19% of total assets.
Loans with Payment Deferrals
The Company is seeing positive trends as an increasing number of loans exit deferment.
As of
($ in millions) | As of | |||||||||||||
Total Loan Portfolio | P&I Deferrals | |||||||||||||
% of Loan | ||||||||||||||
Balance | LTV | Balance | Category | LTV | ||||||||||
One-to-four family and coop/condo | $ | 184.8 | 51.9 | % | $ | 8.8 | 4.7 | % | 55.2 | % | ||||
Multifamily residential and residential mixed-use | 2,915.0 | 51.7 | 192.3 | 6.6 | 60.5 | |||||||||
Commercial mixed-use | 362.0 | 46.4 | 16.1 | 4.4 | 51.4 | |||||||||
Pure commercial real estate (“CRE”): | ||||||||||||||
Retail | 309.7 | 53.4 | 13.4 | 4.3 | 65.8 | |||||||||
Office | 322.1 | 61.1 | 10.5 | 3.3 | 56.7 | |||||||||
Hotels | 171.4 | 65.7 | - | - | - | |||||||||
Warehouse | 134.3 | 64.6 | - | - | - | |||||||||
Single Tenant | 80.8 | 45.4 | 8.9 | 11.1 | 50.9 | |||||||||
Shopping Center | 79.7 | 43.3 | - | - | - | |||||||||
Industrial | 65.1 | 60.9 | - | - | - | |||||||||
All Other | 147.8 | 56.1 | 10.1 | 6.8 | 43.5 | |||||||||
Total Pure CRE | 1,310.9 | 56.6 | 42.9 | 3.3 | 55.2 | |||||||||
Acquisition, Development, and Construction | 151.9 | n/a | - | - | - | |||||||||
- | ||||||||||||||
Commercial and industrial (“C&I”) | 650.0 | n/a | 12.0 | 1.9 | n/a | |||||||||
Other Loans | 1.4 | n/a | - | - | - | |||||||||
Total | $ | 5,576.0 | $ | 272.0 | 4.9 | % | ||||||||
Note: Loan balances exclude deferred fees and costs. |
As of
Management’s Discussion of Quarterly Operating Results
Net Interest Income
Net interest income in the third quarter of 2020 was
($ in millions) | Q3 2020 | Q2 2020 | Q3 2019 | ||||||
NIM | 2.92 | % | 2.86 | % | 2.34 | % | |||
Net Interest Income | $ | 44,944 | $ | 43,556 | $ | 36,196 | |||
Income from Loan Prepayment Activity | $ | 524 | $ | 1,737 | $ | 830 | |||
Net Interest Income Excluding Prepayment Fee Income | $ | 44,399 | $ | 41,819 | $ | 35,366 | |||
NIM, Excluding Prepayment Fee | 2.88 | % | 2.75 | % | 2.28 | % |
Average interest-earning assets were
The ending weighted average rate (“WAR”) on the total loan portfolio was 3.76% at
The average cost of borrowed funds (which primarily consist of
Loans
The real estate loan portfolio increased by
Average real estate loans were
Average C&I loans were
Outlined below are the loan originations for the current quarter, linked quarter and prior year quarter.
($s in millions) | Originations/ Weighted Average Rate | ||
Q3 2020 | Q2 2020 | Q3 2019 | |
Real Estate Originations | |||
C&I Originations | |||
SBA PPP Originations | n/a |
Deposits and Borrowed Funds
The Company continues to focus on growing relationship-based business deposits.
Total deposits decreased by
The cost of total deposits for the quarter ended
Total borrowings (excluding subordinated debt securities) increased to
Non-Interest Income
Non-interest income was
Non-Interest Expense Remains Well Controlled
Total non-interest expense was
The ratio of non-interest expense to average assets was 1.53% during the third quarter of 2020, compared to 1.84% during the linked quarter and 1.41% for the third quarter of 2019. Excluding the impact of severance and merger-related expenses, the ratio of non-interest expense to average assets was 1.48% during the third quarter of 2020, compared to 1.52% during the linked quarter and 1.41% for the third quarter of 2019.
The efficiency ratio was 49.0% during the third quarter of 2020, compared to 60.7% during the linked quarter and 57.7% during the third quarter of 2019. Excluding the impact of severance and merger-related expenses and gain on sale of securities, the efficiency ratio was 47.5% during the third quarter of 2020, compared to 50.3% during the linked quarter and 57.7% during the third quarter of 2019.
Income Tax Expense
The reported effective tax rate for the third quarter of 2020 was 21.9%, compared to 21.6% for the second quarter of 2020, and 15.3% for the third quarter of 2019.
Credit Quality
Non-performing loans at
Under Section 4014 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act), financial institutions had the option to delay the adoption of the Current Expected Credit Loss (“CECL”) framework until the earlier of
A loan loss provision of
The allowance for loan losses was 0.87% of total loans at
At
Capital Management
The Company’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements. At
The Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements. At
Diluted earnings per common share of
Book value per common share increased to
Earnings Call Information
The Company will conduct a conference call at
The conference call will be simultaneously webcast (listen only), and archived for a period of one year, at https://services.choruscall.com/links/dcom201028.html. Dial-in information for the replay is 1-877-344-7529 using access code #10148582. Replay will be available
ABOUT
The Company had
This news release contains a number of forward-looking statements 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 (the "Exchange Act"). These statements may be identified by use of words such as "anticipate," "believe," “continue,” "could," "estimate," "expect," "intend," “likely,” "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.
Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These include statements regarding the proposed merger of the Company with Bridge Bancorp, Inc. (the “Merger”). These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and/or the Bank; unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates; we may incur unexpected expenses and delays related to the Merger; or we may be unable to obtain regulatory approvals or satisfy other closing conditions required to complete the Merger. Further, given its ongoing and dynamic nature, it is difficult to predict what effects the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, result in a decline in demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch closures, work stoppages and unavailability of personnel; and increased cybersecurity risks, as employees increasingly work remotely.
Contact:
Senior Executive Vice President – Chief Financial Officer
718-782-6200 extension 5909
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||
(Dollars in thousands except share amounts) | |||||||||||
September 30, | June 30, | December 31, | |||||||||
2020 | 2020 | 2019 | |||||||||
ASSETS: | |||||||||||
Cash and due from banks | $ | 147,283 | $ | 117,013 | $ | 155,488 | |||||
Mortgage-backed securities available-for-sale, at fair value | 443,824 | 464,279 | 502,464 | ||||||||
Investment securities available-for-sale, at fair value | 81,773 | 77,728 | 48,531 | ||||||||
Marketable equity securities, at fair value | 5,759 | 5,707 | 5,894 | ||||||||
Real Estate Loans: | |||||||||||
One-to-four family and cooperative/condominium apartment | 186,975 | 182,264 | 148,429 | ||||||||
Multifamily residential and residential mixed-use (1)(2) | 2,919,186 | 2,988,511 | 3,385,375 | ||||||||
Commercial real estate and commercial mixed-use | 1,675,488 | 1,504,020 | 1,350,185 | ||||||||
Acquisition, development, and construction ("ADC") | 151,866 | 136,606 | 118,365 | ||||||||
Total real estate loans | 4,933,515 | 4,811,401 | 5,002,354 | ||||||||
Commercial and industrial ("C&I") | 323,972 | 321,009 | 336,412 | ||||||||
318,568 | 310,509 | - | |||||||||
Other loans | 1,448 | 1,463 | 1,772 | ||||||||
Allowance for credit losses | (48,492 | ) | (42,492 | ) | (28,441 | ) | |||||
Total loans, net | 5,529,011 | 5,401,890 | 5,312,097 | ||||||||
Premises and fixed assets, net | 20,539 | 21,423 | 21,692 | ||||||||
Premises held for sale | - | - | 514 | ||||||||
Loans held for sale | 2,625 | 1,794 | 500 | ||||||||
57,305 | 52,305 | 56,019 | |||||||||
Bank Owned Life Insurance ("BOLI") | 155,068 | 154,036 | 114,257 | ||||||||
55,638 | 55,638 | 55,638 | |||||||||
Operating lease assets | 35,503 | 36,813 | 37,858 | ||||||||
Derivative assets | 19,845 | 18,475 | 2,443 | ||||||||
Accrued Interest Receivable | 33,774 | 27,506 | 18,891 | ||||||||
Other assets | 31,444 | 32,914 | 22,174 | ||||||||
TOTAL ASSETS | $ | 6,619,391 | $ | 6,467,521 | $ | 6,354,460 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||||||
Deposits: | |||||||||||
Non-interest-bearing checking | $ | 658,297 | $ | 664,323 | $ | 478,549 | |||||
Interest-bearing checking | 244,696 | 231,201 | 151,491 | ||||||||
Savings | 403,262 | 406,771 | 374,265 | ||||||||
Money Market | 1,708,757 | 1,742,563 | 1,705,451 | ||||||||
Sub-total | 3,015,012 | 3,044,858 | 2,709,756 | ||||||||
Certificates of deposit | 1,357,510 | 1,393,554 | 1,572,869 | ||||||||
Total Due to Depositors | 4,372,522 | 4,438,412 | 4,282,625 | ||||||||
Escrow and other deposits | 119,626 | 87,646 | 76,481 | ||||||||
FHLBNY advances | 1,128,400 | 1,017,300 | 1,092,250 | ||||||||
Subordinated notes payable, net | 114,016 | 113,979 | 113,906 | ||||||||
Other borrowings | 70,000 | 5,000 | 110,000 | ||||||||
Operating lease liabilities | 41,314 | 42,733 | 44,098 | ||||||||
Derivative liabilities | 47,955 | 48,979 | 9,080 | ||||||||
Other liabilities | 31,400 | 31,929 | 29,262 | ||||||||
TOTAL LIABILITIES | 5,925,233 | 5,785,978 | 5,757,702 | ||||||||
STOCKHOLDERS' EQUITY: | |||||||||||
Preferred stock, Series A ( | |||||||||||
shares issued and outstanding at | 116,569 | 116,569 | - | ||||||||
Common stock ( | |||||||||||
shares outstanding at | 537 | 537 | 537 | ||||||||
Additional paid-in capital | 278,580 | 278,581 | 279,322 | ||||||||
Retained earnings | 601,913 | 592,497 | 581,817 | ||||||||
Accumulated other comprehensive loss, net of deferred taxes | (11,539 | ) | (14,403 | ) | (5,940 | ) | |||||
Unearned equity awards | (6,695 | ) | (7,549 | ) | (6,731 | ) | |||||
Common Stock held by the Benefit Maintenance Plan | (1,496 | ) | (1,496 | ) | (1,496 | ) | |||||
(283,711 | ) | (283,193 | ) | (250,751 | ) | ||||||
TOTAL STOCKHOLDERS' EQUITY | 694,158 | 681,543 | 596,758 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,619,391 | $ | 6,467,521 | $ | 6,354,460 | |||||
(1) Includes loans underlying cooperatives. | |||||||||||
(2) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately | |||||||||||
from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio. |
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Dollars in thousands except share and per share amounts) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest income: | ||||||||||||||||
Loans secured by real estate | $ | 47,482 | $ | 49,058 | $ | 50,732 | $ | 146,657 | $ | 150,720 | ||||||
Commercial and industrial ("C&I") loans | 5,752 | 5,071 | 4,442 | 14,868 | 12,012 | |||||||||||
Other loans | 11 | 13 | 18 | 39 | 54 | |||||||||||
Mortgage-backed securities | 2,707 | 3,064 | 2,973 | 9,076 | 9,131 | |||||||||||
Investment securities | 715 | 582 | 626 | 1,718 | 1,616 | |||||||||||
Other short-term investments | 729 | 846 | 1,488 | 2,577 | 4,392 | |||||||||||
Total interest income | 57,396 | 58,634 | 60,279 | 174,935 | 177,925 | |||||||||||
Interest expense: | ||||||||||||||||
Deposits and escrow | 6,672 | 9,700 | 16,582 | 28,298 | 47,870 | |||||||||||
Borrowed funds | 5,780 | 5,378 | 7,501 | 17,613 | 22,031 | |||||||||||
Total interest expense | 12,452 | 15,078 | 24,083 | 45,911 | 69,901 | |||||||||||
Net interest income | 44,944 | 43,556 | 36,196 | 129,024 | 108,024 | |||||||||||
Provision for loan losses | 5,931 | 6,060 | 11,228 | 20,003 | 11,100 | |||||||||||
Net interest income after provision for loan losses | 39,013 | 37,496 | 24,968 | 109,021 | 96,924 | |||||||||||
Non-interest income: | ||||||||||||||||
Service charges and other fees | 1,632 | 1,083 | 1,780 | 3,918 | 4,143 | |||||||||||
Mortgage banking income, net | 71 | 52 | 77 | 189 | 206 | |||||||||||
Gain on equity securities | 175 | 436 | 14 | 139 | 430 | |||||||||||
Gain (loss) on sale of securities and other assets | 215 | 3,134 | 66 | 3,357 | (67 | ) | ||||||||||
Gain on sale of loans | 1,425 | 206 | 443 | 1,946 | 1,037 | |||||||||||
Income from BOLI | 1,033 | 911 | 723 | 3,831 | 2,124 | |||||||||||
Loan level derivative income | 1,544 | 2,494 | 197 | 5,201 | 488 | |||||||||||
Other | 54 | 70 | 61 | 190 | 180 | |||||||||||
Total non-interest income | 6,149 | 8,386 | 3,361 | 18,771 | 8,541 | |||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and employee benefits | 13,512 | 14,719 | 12,948 | 43,077 | 36,893 | |||||||||||
Severance pay | - | 3,930 | - | 4,000 | - | |||||||||||
Stock benefit plan compensation expense | 804 | 478 | 574 | 1,953 | 1,349 | |||||||||||
Occupancy and equipment | 4,046 | 3,959 | 3,970 | 12,061 | 11,666 | |||||||||||
Data processing costs | 2,146 | 2,007 | 1,803 | 6,177 | 5,777 | |||||||||||
Marketing | 134 | 136 | 466 | 667 | 1,397 | |||||||||||
Federal deposit insurance premiums | 761 | 529 | (506 | ) | 1,767 | 534 | ||||||||||
Merger expenses | 769 | 1,072 | - | 2,427 | - | |||||||||||
Other | 2,681 | 2,516 | 3,519 | 8,110 | 9,506 | |||||||||||
Total non-interest expense | 24,853 | 29,346 | 22,774 | 80,239 | 67,122 | |||||||||||
Income before taxes | 20,309 | 16,536 | 5,555 | 47,553 | 38,343 | |||||||||||
Income tax expense | 4,441 | 3,570 | 850 | 10,327 | 9,102 | |||||||||||
Net income | 15,868 | 12,966 | 4,705 | 37,226 | 29,241 | |||||||||||
Preferred stock dividends | 1,822 | 1,140 | - | 2,962 | - | |||||||||||
Net income available to common stockholders | $ | 14,046 | $ | 11,826 | $ | 4,705 | $ | 34,264 | $ | 29,241 | ||||||
Earnings per Common Share ("EPS"): | ||||||||||||||||
Basic | $ | 0.43 | $ | 0.36 | $ | 0.13 | $ | 1.02 | $ | 0.81 | ||||||
Diluted | $ | 0.42 | $ | 0.35 | $ | 0.13 | $ | 1.01 | $ | 0.81 | ||||||
Average common shares outstanding for Diluted EPS | 32,907,696 | 33,243,700 | 35,769,461 | 33,628,210 | 35,866,059 |
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||||
(Dollars in thousands except per share amounts) | |||||||||||||||||||
At or For the Three Months Ended | At or For the Nine Months Ended | ||||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Per Share Data: | |||||||||||||||||||
Reported EPS (Diluted) | $ | 0.42 | $ | 0.35 | $ | 0.13 | $ | 1.01 | $ | 0.81 | |||||||||
Cash dividends paid per common share | 0.14 | 0.14 | 0.14 | 0.42 | 0.42 | ||||||||||||||
Book value per common share | 17.48 | 17.07 | 16.94 | 17.48 | 16.94 | ||||||||||||||
Tangible common book value per share (1) | 15.79 | 15.39 | 15.39 | 15.79 | 15.39 | ||||||||||||||
Dividend payout ratio | 33.33 | % | 40.00 | % | 107.69 | % | 41.58 | % | 51.85 | % | |||||||||
Performance Ratios (Based upon Reported Net Income): | |||||||||||||||||||
Return on average assets | 0.98 | % | 0.81 | % | 0.29 | % | 0.78 | % | 0.61 | % | |||||||||
Return on average equity | 9.22 | 7.96 | 3.08 | 7.59 | 6.42 | % | |||||||||||||
Return on average tangible equity (1) | 10.03 | 8.71 | 3.39 | 8.27 | 7.07 | % | |||||||||||||
Return on average tangible common equity (1) | 10.88 | 9.23 | 3.39 | 8.76 | 7.07 | % | |||||||||||||
Net interest spread | 2.72 | 2.61 | 2.07 | 2.53 | 2.06 | % | |||||||||||||
Net interest margin | 2.92 | 2.86 | 2.34 | 2.79 | 2.34 | % | |||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 125.10 | 124.97 | 118.38 | 123.68 | 118.70 | % | |||||||||||||
Non-interest expense to average assets | 1.53 | 1.84 | 1.41 | 1.68 | 1.40 | % | |||||||||||||
Efficiency ratio | 49.02 | 60.67 | 57.69 | 55.61 | 57.76 | % | |||||||||||||
Loan-to-deposit ratio at end of period | 127.56 | 122.67 | 124.86 | 127.56 | 124.86 | % | |||||||||||||
CRE consolidated concentration ratio (2) | 545.10 | 544.90 | 678.90 | 545.10 | 678.90 | % | |||||||||||||
Effective tax rate | 21.87 | 21.59 | 15.30 | 21.72 | 23.74 | % | |||||||||||||
Average Balance Data: | |||||||||||||||||||
Average assets | $ | 6,492,173 | $ | 6,389,768 | $ | 6,446,382 | $ | 6,363,767 | $ | 6,400,652 | |||||||||
Average interest-earning assets | 6,164,452 | 6,091,545 | 6,191,299 | 6,069,114 | 6,145,701 | ||||||||||||||
Average loans | 5,519,607 | 5,387,839 | 5,503,233 | 5,397,425 | 5,480,330 | ||||||||||||||
Average deposits | 4,421,090 | 4,413,182 | 4,416,143 | 4,337,594 | 4,378,729 | ||||||||||||||
Average equity | 688,396 | 651,319 | 610,487 | 654,104 | 607,238 | ||||||||||||||
Average tangible equity (1) | 632,758 | 595,681 | 554,849 | 600,048 | 551,600 | ||||||||||||||
Average tangible common equity (1) | 516,189 | 512,371 | 554,849 | 521,385 | 551,600 | ||||||||||||||
Asset Quality Summary: | |||||||||||||||||||
Non-performing loans (excluding loans held for sale) | $ | 12,424 | $ | 15,383 | $ | 16,378 | $ | 12,424 | $ | 16,378 | |||||||||
Non-performing assets | 12,424 | 15,383 | 16,378 | 12,424 | 16,378 | ||||||||||||||
Loans delinquent 30 to 89 days at period end | 16,826 | 6,278 | 139 | 16,826 | 139 | ||||||||||||||
Net (recoveries) charge-offs | (69 | ) | 31 | 5,068 | (48 | ) | 5,588 | ||||||||||||
Non-performing assets/ Total assets | 0.19 | % | 0.24 | % | 0.25 | % | 0.19 | % | 0.25 | % | |||||||||
Non-performing loans/ Total loans | 0.22 | 0.28 | 0.30 | 0.22 | 0.30 | ||||||||||||||
Allowance for loan loss/ Total loans | 0.87 | 0.78 | 0.50 | 0.87 | 0.50 | ||||||||||||||
Allowance for loan loss/ Non-performing loans | 390.31 | 276.23 | 166.65 | 390.31 | 166.65 | ||||||||||||||
Capital Ratios - Consolidated: | |||||||||||||||||||
Tangible common equity to tangible assets (1) | 7.95 | % | 7.94 | % | 8.69 | % | 7.95 | % | 8.69 | % | |||||||||
Tangible equity to tangible assets (1) | 9.73 | 9.76 | 8.69 | 9.73 | 8.69 | ||||||||||||||
Tier 1 common equity ratio | 10.69 | 10.69 | 10.62 | 10.69 | 10.62 | ||||||||||||||
Tier 1 risk-based capital ratio | 13.02 | 13.07 | 10.62 | 13.02 | 10.62 | ||||||||||||||
Total risk-based capital ratio | 16.30 | 16.29 | 13.33 | 16.30 | 13.33 | ||||||||||||||
Tier 1 leverage ratio | 10.10 | 10.11 | 8.76 | 10.10 | 8.76 | ||||||||||||||
Capital Ratios - Bank Only: | |||||||||||||||||||
Tier 1 common equity ratio | 12.88 | % | 12.97 | % | 11.86 | % | 12.88 | % | 11.86 | % | |||||||||
Tier 1 risk-based capital ratio | 12.88 | 12.97 | 11.86 | 12.88 | 11.86 | ||||||||||||||
Total risk-based capital ratio | 13.87 | 13.85 | 12.38 | 13.87 | 12.38 | ||||||||||||||
Tier 1 leverage ratio | 9.97 | 9.98 | 9.81 | 9.97 | 9.81 | ||||||||||||||
(1) See "Non-GAAP Reconciliation" table for reconciliation of tangible equity, tangible common equity, and tangible assets. Average balances are calculated using the ending balance for months during the period indicated. | |||||||||||||||||||
(2) The CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner occupied commercial real estate, multifamily, and ADC, divided by consolidated capital. |
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||
Assets: | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Real estate loans | $ | 4,874,780 | $ | 47,482 | 3.90 | % | $ | 4,867,970 | $ | 49,058 | 4.03 | % | $ | 5,188,967 | $ | 50,732 | 3.91 | % | |||||
Commercial and industrial loans | 643,383 | 5,752 | 3.58 | 518,999 | 5,071 | 3.91 | 312,472 | 4,442 | 5.69 | ||||||||||||||
Other loans | 1,444 | 11 | 3.16 | 870 | 13 | 5.98 | 1,794 | 18 | 4.01 | ||||||||||||||
Mortgage-backed securities | 435,920 | 2,707 | 2.48 | 468,705 | 3,064 | 2.61 | 432,071 | 2,973 | 2.75 | ||||||||||||||
Investment securities | 78,405 | 715 | 3.65 | 65,155 | 582 | 3.57 | 74,349 | 626 | 3.37 | ||||||||||||||
Other short-term investments | 130,520 | 729 | 2.23 | 169,846 | 846 | 1.99 | 181,646 | 1,488 | 3.28 | ||||||||||||||
Total interest-earning assets | 6,164,452 | 57,396 | 3.72 | % | 6,091,545 | 58,634 | 3.85 | % | 6,191,299 | 60,279 | 3.89 | % | |||||||||||
Non-interest-earning assets | 327,721 | 298,223 | 255,083 | ||||||||||||||||||||
Total assets | $ | 6,492,173 | $ | 6,389,768 | $ | 6,446,382 | |||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Interest-bearing checking accounts | $ | 241,248 | $ | 186 | 0.31 | % | $ | 222,694 | $ | 212 | 0.38 | % | $ | 125,310 | $ | 56 | 0.18 | % | |||||
Money market accounts | 1,696,297 | 1,858 | 0.44 | 1,656,394 | 2,495 | 0.61 | 1,845,594 | 6,883 | 1.48 | ||||||||||||||
Savings accounts | 405,582 | 170 | 0.17 | 404,389 | 305 | 0.30 | 341,170 | 158 | 0.18 | ||||||||||||||
Certificates of deposit | 1,425,083 | 4,458 | 1.24 | 1,511,598 | 6,688 | 1.78 | 1,674,478 | 9,485 | 2.25 | ||||||||||||||
Total interest-bearing deposits | 3,768,210 | 6,672 | 0.70 | 3,795,075 | 9,700 | 1.03 | 3,986,552 | 16,582 | 1.65 | ||||||||||||||
FHLBNY advances | 1,040,127 | 4,448 | 1.70 | 962,657 | 4,047 | 1.69 | 1,127,379 | 6,159 | 2.17 | ||||||||||||||
Subordinated notes payable, net | 113,992 | 1,330 | 4.64 | 113,955 | 1,330 | 4.69 | 113,845 | 1,330 | 4.64 | ||||||||||||||
Other borrowings | 5,283 | 2 | 0.12 | 2,747 | 1 | 0.15 | 2,337 | 12 | 1.99 | ||||||||||||||
Borrowed Funds | 1,159,402 | 5,780 | 1.98 | 1,079,359 | 5,378 | 2.00 | 1,243,561 | 7,501 | 2.39 | ||||||||||||||
Total interest-bearing liabilities | 4,927,612 | 12,452 | 1.01 | % | 4,874,434 | 15,078 | 1.24 | % | 5,230,113 | 24,083 | 1.83 | % | |||||||||||
Non-interest-bearing checking accounts | 652,880 | 618,107 | 429,591 | ||||||||||||||||||||
Other non-interest-bearing liabilities | 223,285 | 245,908 | 176,191 | ||||||||||||||||||||
Total liabilities | 5,803,777 | 5,738,449 | 5,835,895 | ||||||||||||||||||||
Stockholders' equity | 688,396 | 651,319 | 610,487 | ||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 6,492,173 | $ | 6,389,768 | $ | 6,446,382 | |||||||||||||||||
Net interest income | $ | 44,944 | $ | 43,556 | $ | 36,196 | |||||||||||||||||
Net interest spread | 2.72 | % | 2.61 | % | 2.07 | % | |||||||||||||||||
Net interest-earning assets | $ | 1,236,839 | $ | 1,217,111 | $ | 961,186 | |||||||||||||||||
Net interest margin | 2.92 | % | 2.86 | % | 2.34 | % | |||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 125.10 | % | 124.97 | % | 118.38 | % | |||||||||||||||||
Deposits (including non-interest-bearing checking accounts) | $ | 4,421,090 | $ | 6,672 | 0.60 | % | $ | 4,413,182 | $ | 9,700 | 0.88 | % | $ | 4,416,143 | $ | 16,582 | 1.49 | % |
UNAUDITED SCHEDULE OF LOAN COMPOSITION AND WEIGHTED AVERAGE RATES ("WAR") (1) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
At | At | At | ||||||||||||
Balance | WAR | Balance | WAR | Balance | WAR | |||||||||
Loan balances at period end: | ||||||||||||||
One-to-four family residential, including condominium and cooperative apartment | $ | 186,975 | 3.97 | % | $ | 182,264 | 3.98 | % | $ | 134,361 | 4.38 | % | ||
Multifamily residential and residential mixed-use (2)(3) | 2,919,186 | 3.77 | 2,988,511 | 3.77 | 3,608,156 | 3.72 | ||||||||
Commercial real estate and commercial mixed-use | 1,675,488 | 4.00 | 1,504,020 | 4.06 | 1,333,763 | 4.31 | ||||||||
Acquisition, development, and construction ("ADC") | 151,866 | 5.04 | 136,606 | 5.08 | 95,767 | 6.00 | ||||||||
Total real estate loans | 4,933,515 | 3.90 | 4,811,401 | 3.91 | 5,172,047 | 3.93 | ||||||||
Commercial and industrial ("C&I") | 323,972 | 4.49 | 321,009 | 4.39 | 309,593 | 5.46 | ||||||||
318,568 | 1.00 | 310,509 | 1.00 | - | - | |||||||||
Total | $ | 5,576,055 | 3.76 | % | $ | 5,442,919 | 3.77 | % | $ | 5,481,640 | 4.02 | % | ||
(1) Weighted average rate is calculated by aggregating interest based on the current loan rate from each loan in the category, divided by the total amount of loans in the category. | ||||||||||||||
(2) Includes loans underlying cooperatives. | ||||||||||||||
(3) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately | ||||||||||||||
from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio. |
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs") | ||||||||
(Dollars in thousands) | ||||||||
At | At | At | ||||||
2020 | 2020 | 2019 | ||||||
Non-Performing Loans | ||||||||
One-to-four family residential, including condominium and cooperative apartment | $ | 867 | $ | 819 | $ | 1,161 | ||
Multifamily residential and residential mixed-use (1)(2) | 1,213 | 1,377 | 153 | |||||
Commercial real estate and commercial mixed-use real estate (2) | 47 | 3,003 | 63 | |||||
C&I | 10,287 | 10,176 | 15,000 | |||||
Other | 10 | 8 | 1 | |||||
Total Non-Performing Loans (3) | $ | 12,424 | $ | 15,383 | $ | 16,378 | ||
Total Non-Performing Assets | $ | 12,424 | $ | 15,383 | $ | 16,378 | ||
Performing TDR Loans | ||||||||
One-to-four family and cooperative/condominium apartment | $ | - | $ | - | $ | 9 | ||
Total Performing TDRs | $ | - | $ | - | $ | 9 | ||
(1) Includes loans underlying cooperatives. | ||||||||
(2) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately | ||||||||
from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio. | ||||||||
(3) There were no non-accruing TDRs for the periods indicated. |
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE EQUITY AND RESERVES | |||||||||||
(Dollars in thousands) | |||||||||||
At | At | At | |||||||||
2020 | 2020 | 2019 | |||||||||
Total Non-Performing Assets | $ | 12,424 | $ | 15,383 | $ | 16,378 | |||||
Loans 90 days or more past due on accrual status (4) | 1,939 | 3,691 | 380 | ||||||||
TOTAL PROBLEM ASSETS | $ | 14,363 | $ | 19,074 | $ | 16,758 | |||||
Tangible equity (5) | $ | 638,520 | $ | 625,905 | $ | 553,266 | |||||
Allowance for loan losses and reserves for contingent liabilities | 48,517 | 42,517 | 27,319 | ||||||||
TANGIBLE EQUITY PLUS RESERVES | $ | 687,037 | $ | 668,422 | $ | 580,585 | |||||
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE EQUITY AND RESERVES | 2.1 | % | 2.9 | % | 2.9 | % | |||||
(4) These loans were, as of the respective dates indicated, expected to be either satisfied, made current or re-financed in the near future, and were not expected | |||||||||||
to result in any loss of contractual principal or interest. These loans are not included in non-performing loans. | |||||||||||
(5) See "Non-GAAP Reconciliation" table for reconciliation of tangible common equity and tangible assets. |
NON-GAAP RECONCILIATION | |||||||||||||||||||
(Dollars in thousands except per share amounts) | |||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Reconciliation of Reported and Adjusted ("non-GAAP") Net Income: | |||||||||||||||||||
Reported net income | $ | 15,868 | $ | 12,966 | $ | 4,705 | $ | 37,226 | $ | 29,241 | |||||||||
Adjustments to net income, net of tax (1): | |||||||||||||||||||
Add: Merger expenses (2) | 617 | 879 | - | 1,994 | - | ||||||||||||||
Add: Severance | - | 2,686 | - | 2,734 | - | ||||||||||||||
Less: Loss (Gain) on sale of securities | (147 | ) | (2,142 | ) | (45 | ) | (2,294 | ) | 46 | ||||||||||
Adjusted ("non-GAAP") net income | $ | 16,338 | $ | 14,389 | $ | 4,660 | $ | 39,660 | $ | 29,287 | |||||||||
Adjusted Ratios (Based upon "non-GAAP Net Income" as calculated above): | |||||||||||||||||||
Adjusted EPS (Diluted) | $ | 0.44 | $ | 0.40 | $ | 0.13 | $ | 1.09 | $ | 0.82 | |||||||||
Adjusted return on average assets | 1.01 | % | 0.90 | % | 0.29 | % | 0.83 | % | 0.61 | % | |||||||||
Adjusted return on average equity | 9.49 | 8.84 | 3.05 | 8.08 | 6.43 | ||||||||||||||
Adjusted return on average tangible equity | 10.33 | 9.66 | 3.36 | 8.81 | 7.08 | ||||||||||||||
Adjusted return on average tangible common equity | 11.25 | 10.34 | 3.36 | 9.38 | 7.08 | ||||||||||||||
Adjusted non-interest expense to average assets | 1.48 | 1.52 | 1.41 | 1.55 | 1.40 | ||||||||||||||
Adjusted efficiency ratio | 47.50 | 50.33 | 57.69 | 51.15 | 57.76 | ||||||||||||||
2020 | 2020 | 2019 | |||||||||||||||||
Reconciliation of Tangible Assets: | |||||||||||||||||||
Total assets | $ | 6,619,391 | $ | 6,467,521 | $ | 6,425,335 | |||||||||||||
Less: | |||||||||||||||||||
55,638 | 55,638 | 55,638 | |||||||||||||||||
Tangible assets | $ | 6,563,753 | $ | 6,411,883 | $ | 6,369,697 | |||||||||||||
Reconciliation of Tangible Common Equity - Consolidated: | |||||||||||||||||||
Total stockholders' equity | $ | 694,158 | $ | 681,543 | $ | 608,904 | |||||||||||||
Less: | |||||||||||||||||||
55,638 | 55,638 | 55,638 | |||||||||||||||||
Tangible equity | 638,520 | 625,905 | 553,266 | ||||||||||||||||
Less: | |||||||||||||||||||
Preferred Stock, net | 116,569 | 116,569 | - | ||||||||||||||||
Tangible common equity | $ | 521,951 | $ | 509,336 | $ | 553,266 | |||||||||||||
(1) Adjustments to net income are taxed at the Company's statutory tax rate of approximately 32% unless otherwise noted. | |||||||||||||||||||
(2) Certain merger expenses are non-taxable expense. |
Source:
2020 GlobeNewswire, Inc., source