10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q 

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

Or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number: 0-50275

BCB Bancorp, Inc.

(Exact name of registrant as specified in its charter)

New Jersey	26-0065262
(State or other jurisdiction of incorporation or organization)	(IRS Employer I.D. No.)
104-110 Avenue C Bayonne, New Jersey	07002
(Address of principal executive offices)	(Zip Code)

(201) 823-0700

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year if changed since last report)

Securities registered pursuant to section 12(b) of the Securities and Exchange Act of 1934:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	BCBP	The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   T   Yes    o   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    x   Yes    o   No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	o	Accelerated Filer	x
Non-Accelerated Filer	o	Smaller Reporting Company	o
		Emerging Growth Company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act).    o  Yes    T  No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of November 1, 2023, BCB Bancorp, Inc., had 16,848,006 shares of common stock, no par value, outstanding.

‎

BCB BANCORP INC. AND SUBSIDIARIES

INDEX

	Page
PART I. CONSOLIDATED FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Statements of Financial Condition as of September 30, 2023 (unaudited) and December 31, 2022 (unaudited)		1
Consolidated Statements of Income for the three and nine months ended September 30, 2023 and 2022 (unaudited)		2
Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2023 and 2022 (unaudited)		3
Consolidated Statement of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2023 and 2022 (unaudited)		4
Consolidated Statements of Cash Flows for the three and nine months ended September 30, 2023 and 2022 (unaudited)		6
Notes to Unaudited Consolidated Financial Statements		7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		28
Item 3. Quantitative and Qualitative Disclosures about Market Risk		34
Item 4. Controls and Procedures		34
PART II. OTHER INFORMATION		35
Item 1. Legal Proceedings		35
Item 1A. Risk Factors		35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		35
Item 3. Defaults Upon Senior Securities		35
Item 4. Mine Safety Disclosures		35
Item 5. Other Information		35
Item 6. Exhibits		36
Signature		37

PART I. CONSOLIDATED FINANCIAL INFORMATION

ITEM I. CONSOLIDATED FINANCIAL STATEMENTS

BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Financial Condition

(In thousands, Except Share and Per Share Data, Unaudited)

	September 30,		December 31,
	2023		2022
ASSETS
Cash and amounts due from depository institutions	$	16,772	$	11,520
Interest-earning deposits		235,144		217,839
Total cash and cash equivalents		251,916		229,359
Interest-earning time deposits		735		735
Debt securities available for sale		86,172		91,715
Equity investments		8,272		17,686
Loans held for sale		472		658
Loans receivable, net of allowance for credit losses
of $31,914 and $32,373 respectively (1)		3,285,727		3,045,331
Federal Home Loan Bank of New York stock, at cost		31,629		20,113
Premises and equipment, net		13,363		10,508
Accrued interest receivable		16,175		13,455
Other real estate owned		75		75
Deferred income taxes		16,749		16,462
Goodwill and other intangibles		5,288		5,382
Operating lease right-of-use assets		12,953		13,520
Bank-owned life insurance ("BOLI")		72,810		71,656
Other assets		9,784		9,538
Total Assets	$	3,812,120	$	3,546,193
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest -bearing deposits	$	523,912	$	613,910
Interest bearing deposits		2,295,644		2,197,697
Total deposits		2,819,556		2,811,607
FHLB advances		622,674		382,261
Subordinated debentures		37,624		37,508
Operating lease liability		13,318		13,859
Other liabilities		15,312		9,704
Total Liabilities		3,508,484		3,254,939
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000,000 shares authorized; issued and outstanding 2,101 shares of Series H 3.5% and Series I 3.0%, (liquidation value $10,000 per share) noncumulative perpetual preferred stock at September 30, 2023 and 2,123 shares of Series H 3.5% and Series I 3.0% at December 31, 2022, respectively		-		-
Additional paid-in capital preferred stock		20,783		21,003
Common stock: no par value; 40,000,000 shares authorized; issued 20,081,977 and 19,898,197 at September 30, 2023 and December 31, 2022, respectively, outstanding 16,848,006 and 16,930,979, at September 30, 2023 and December 31, 2022, respectively		-		-
Additional paid-in capital common stock		198,097		196,164
Retained earnings		132,729		115,109
Accumulated other comprehensive loss		(9,626)		(6,491)
Treasury stock, at cost, 3,233,971 and 2,967,218 shares at September 30, 2023 and December 31, 2022, respectively		(38,347)		(34,531)
Total Stockholders' Equity		303,636		291,254
Total Liabilities and Stockholders' Equity	$	3,812,120	$	3,546,193

See accompanying notes to unaudited consolidated financial statements

⁽¹⁾ The Company adopted ASU 2016-13 as of January 1, 2023. Prior year periods have not been restated.
‎

1

BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Income

(In thousands, Except for Per Share Amounts, Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023			2022	2023		2022
Interest and dividend income:
Loans, including fees	$	44,133	$	32,302	$	125,666	$	87,404
Mortgage-backed securities		217		173		587		379
Other investment securities		1,045		1,103		3,235		2,990
FHLB stock and other interest earning assets		3,672		822		9,168		1,812
Total interest income		49,067		34,400		138,656		92,585
Interest expense:
Deposits:
Demand		4,556		1,169		11,900		2,873
Savings and club		182		113		443		331
Certificates of deposit		10,922		1,087		25,849		2,916
		15,660		2,369		38,192		6,120
Borrowings		7,727		1,080		20,324		2,701
Total interest expense		23,387		3,449		58,516		8,821
Net interest income		25,680		30,951		80,140		83,764
Provision (benefit) for credit losses (1)		2,205		-		4,177		(2,575)
Net interest income after (provision) benefit for credit losses		23,475		30,951		75,963		86,339
Non-interest income:
Fees and service charges		1,349		1,251		3,889		3,678
BOLI income		466		646		1,154		2,087
Gain on sales of loans		19		18		25		126
Realized and unrealized losses on equity investments		(494)		(559)		(4,390)		(5,546)
Other		66		90		182		188
Total non-interest income		1,406		1,446		860		533
Non-interest expense:
Salaries and employee benefits		7,524		6,944		22,853		20,395
Occupancy and equipment		2,622		2,608		7,734		7,976
Data processing and communications		1,787		1,520		5,247		4,454
Professional fees		560		614		1,748		1,597
Director fees		274		375		809		992
Regulatory assessments		1,111		264		2,443		812
Advertising and promotional		317		286		945		681
Other real estate owned, net		1		1		3		6
Other		1,267		841		2,241		2,555
Total non-interest expense		15,463		13,453		44,023		39,468
Income before income tax provision		9,418		18,944		32,800		47,404
Income tax provision		2,707		5,552		9,379		13,897
Net Income	$	6,711	$	13,392	$	23,421	$	33,507
Preferred stock dividends		173		174		520		624
Net Income available to common stockholders	$	6,538	$	13,218	$	22,901	$	32,883
Net Income per common share-basic and diluted
Basic	$	0.39	$	0.78	$	1.36	$	1.94
Diluted	$	0.39	$	0.76	$	1.35	$	1.89
Weighted average number of common shares outstanding
Basic		16,830		16,982		16,868		16,986
Diluted		16,854		17,356		16,951		17,369

See accompanying notes to unaudited consolidated financial statements.

⁽¹⁾ The Company adopted ASU 2016-13 as of January 1, 2023. Prior year periods have not been restated.

2

BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(In thousands, Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net Income	$	6,711	$	13,392	$	23,421	$	33,507
Other comprehensive loss, net of tax:
Unrealized losses on available-for-sale debt securities:
Unrealized holding losses arising during the period		(414)		(4,191)		(4,204)		(9,675)
Tax Effect		209		1,039		1,069		2,398
Other comprehensive loss		(205)		(3,152)		(3,135)		(7,277)
Comprehensive income	$	6,506	$	10,240	$	20,286	$	26,230

See accompanying notes to unaudited consolidated financial statements.

3

BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Equity

(In thousands, Except Share and Per Share Data, Unaudited) 

	Preferred ‎Stock		Common ‎Stock		Additional ‎Paid-In ‎Capital		Retained ‎Earnings		Treasury ‎Stock		Accumulated ‎Other ‎Comprehensive ‎Income ‎(Loss)		Total
Balance at December 31, 2022	$	-	$	-	$	217,167	$	115,109	$	(34,531)	$	(6,491)	$	291,254
Effect of Adopting ASU No. 2016 -13 ("CECL")		-		-		-		2,870		-		-		2,870
Beginning Balance at January 1, 2023		-		-		217,167		117,979		(34,531)		(6,491)		294,124
Net income		-		-		-		23,421		-		-		23,421
Other comprehensive income		-		-		-		-		-		(3,135)		(3,135)
Exercise of stock options (61,000 shares)		-		-		418		-		-		-		418
Stock-based compensation expense		-		-		402		-		-		-		402
Treasury stock purchases (266,753 shares)		-		-		-		-		(3,816)		-		(3,816)
Dividends payable on Series H 3.5% and Series I 3.0% noncumulative perpetual preferred stock		-		-		-		(520)		-		-		(520)
Redemption of Series H Preferred Stock		-		-		(220)		-		-		-		(220)
Cash dividends on common stock ($0.48 per share declared)		-		-		-		(7,864)		-		-		(7,864)
Dividend reinvestment plan		-		-		287		(287)		-		-		-
Stock purchase plan		-		-		826		-		-		-		826
Balance at September 30, 2023	$	-	$	-	$	218,880	$	132,729	$	(38,347)	$	(9,626)	$	303,636

	Preferred ‎Stock		Common ‎Stock		Additional ‎Paid-In ‎Capital		Retained ‎Earnings		Treasury ‎Stock		Accumulated ‎Other ‎Comprehensive ‎Income (Loss)		Total
Balance at July 1, 2023	$	-	$	-	$	218,524	$	128,867	$	(38,347)	$	(9,421)	$	299,623
Net income		-		-		-		6,711		-		-		6,711
Other comprehensive income		-		-		-		-		-		(205)		(205)
Stock-based compensation expense		-		-		185		-		-		-		185
Dividends payable on Series H 3.5%, and Series I 3.0% noncumulative perpetual preferred stock		-		-		-		(173)		-		-		(173)
Redemption of Series H Preferred Stock		-		-		(220)		-		-		-		(220)
Cash dividends on common stock ($0.16 per share declared)		-		-		-		(2,584)		-		-		(2,584)
Dividend reinvestment plan		-		-		92		(92)		-		-		-
Stock purchase plan		-		-		299		-		-		-		299
Balance at September 30, 2023	$	-	$	-	$	218,880	$	132,729	$	(38,347)	$	(9,626)	$	303,636

See accompanying notes to unaudited consolidated financial statements.

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4

BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Equity

(In thousands, Except Share and Per Share Data, Unaudited) 

	Preferred ‎Stock		Common ‎Stock		Additional ‎Paid-In ‎Capital		Retained ‎Earnings		Treasury ‎Stock		Accumulated ‎Other ‎Comprehensive ‎Income ‎(Loss)		Total
Balance at January 1, 2022	$	-	$	-	$	222,850	$	81,171	$	(31,125)	$	1,128	$	274,024
Net income		-		-		-		33,507		-		-		33,507
Other comprehensive income		-		-		-		-		-		(7,277)		(7,277)
Stock-based compensation expense		-		-		458		-		-		-		458
Exercise of stock options (111,950 shares)						3		-		-		-		3
Treasury stock purchases (71,513 shares)		-		-		-		-		(1,998)		-		(1,998)
Dividends payable on Series D 4.5%, Series G 6%, Series H 3.5%, and Series I 3.0% noncumulative perpetual preferred stock		-		-		-		(624)		-		-		(624)
Redemption of Series D and Series G preferred stock		-		-		(14,730)		-		-		-		(14,730)
Issuance of Series I Preferred Stock		-		-		6,809		-		-		-		6,809
Cash dividends on common stock ($0.48 per share declared)		-		-		-		(7,809)		-		-		(7,809)
Dividend reinvestment plan		-		-		351		(351)		-		-		-
Stock purchase plan		-		-		319		-		-		-		319
Balance at September 30, 2022	$	-	$	-	$	216,060	$	105,894	$	(33,123)	$	(6,149)	$	282,682

	Preferred ‎Stock		Common ‎Stock		Additional ‎Paid-In ‎Capital		Retained ‎Earnings		Treasury ‎Stock		Accumulated ‎Other ‎Comprehensive ‎Income ‎(Loss)		Total
Balance at July 1, 2022	$	-	$	-	$	211,130	$	95,393	$	(31,889)	$	(2,997)	$	271,637
Net income		-		-		-		13,392		-		-		13,392
Other comprehensive income		-		-		-		-		-		(3,152)		(3,152)
Stock-based compensation expense		-		-		267		-		-		-		267
Exercise stock options expense (111,750 shares)		-		-		3		-		-		-		3
Treasury stock purchases (116,626 shares)		-		-		-		-		(1,234)		-		(1,234)
Dividends payable on Series H 3.5%, and Series I 3.0% noncumulative perpetual preferred stock		-		-		-		(174)		-		-		(174)
Issuance of Series I preferred stock		-		-		4,439		-		-		-		4,439
Cash dividends on common stock ($0.16 per share declared)		-		-		-		(2,596)		-		-		(2,596)
Dividend reinvestment plan		-		-		121		(121)		-		-		-
Stock purchase plan		-		-		100		-		-		-		100
Balance at September 30, 2022	$	-	$	-	$	216,060	$	105,894	$	(33,123)	$	(6,149)	$	282,682

See accompanying notes to unaudited consolidated financial statements.

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5

BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands, Unaudited)

	Nine Months Ended September 30,
	2023		2022
Cash Flows from Operating Activities:
Net Income	$	23,421	$	33,507
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment		1,480		1,735
Amortization and accretion, net		(1,835)		(1,005)
Provision (benefit) for credit losses		4,177		(2,575)
Deferred income tax expense (benefit)		782		(505)
Loans originated for sale		(1,528)		(5,733)
Proceeds from sales of loans		1,739		6,811
Gain on sales of loans originated for sale		(25)		(126)
Realized and unrealized losses on equity investments		4,390		5,546
Stock-based compensation expense		402		458
BOLI Income		(1,154)		(2,087)
(Increase) decrease in accrued interest receivable		(2,720)		(1,910)
(Increase) decrease in other assets		(246)		700
Increase (decrease) in accrued interest payable		2,662		(214)
Increase (decrease) in other liabilities		2,946		(1,841)
Net Cash Provided by Operating Activities		34,491		32,761
Cash flows from investing activities:
Proceeds from repayments, calls, and maturities on securities available for sale		13,653		9,310
Purchases of securities		(12,498)		(26,968)
Proceeds from sales of securities		5,024		1,232
Net increase in loans receivable		(239,035)		(477,429)
Proceeds from BOLI		-		3,500
Additions to premises and equipment		(4,335)		(221)
Purchase of Federal Home Loan Bank of New York stock		(11,516)		(6,304)
Net Cash Used In Investing Activities		(248,707)		(496,880)
Cash flows from financing activities:
Net increase in deposits		7,949		151,544
Proceeds from Federal Home Loan Bank of New York Long Term Advances		400,000		-
Net change in Federal Home Loan Bank of New York Short Term Advances		(160,000)		140,000
Purchases of treasury stock		(3,816)		(1,998)
Cash dividends paid on common stock		(7,864)		(7,809)
Cash dividends paid on preferred stock		(520)		(624)
Net proceeds from issuance of common stock		826		319
Net proceeds from issuance of preferred stock		-		6,809
Payments for redemption of preferred stock		(220)		(14,730)
Exercise of stock options		418		3
Net Cash Provided by Financing Activities		236,773		273,514
Net Increase (Decrease) in Cash and Cash Equivalents		22,557		(190,605)
Cash and Cash Equivalents-Beginning		229,359		411,629
Cash and Cash Equivalents-Ending	$	251,916	$	221,024
Supplementary Cash Flow Information:
Cash paid during the period for:
Income taxes	$	12,322	$	13,615
Interest		55,853		9,036

See accompanying notes to unaudited consolidated financial statements.

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6

BCB Bancorp Inc. and Subsidiaries

Notes to Unaudited Consolidated Financial Statements

Note 1 – Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of BCB Bancorp, Inc. (the “Company”) and the Company’s wholly owned subsidiaries, BCB Community Bank (the “Bank”), BCB Holding Company Investment Corporation, Special Asset REO I, LLC., and Special Asset REO II, LLC. The Company’s business is conducted principally through the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and, therefore, do not necessarily include all information that would be included in audited consolidated financial statements. The information furnished reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of consolidated financial condition and results of operations. All such adjustments are of a normal recurring nature. These results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, or any other future period. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates.

These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the year ended December 31, 2022, which are included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred between December 31, 2022 and the date these consolidated financial statements were issued.

Risks and Uncertainties - The occurrence of events which adversely affect the global, national and regional economies may have a negative impact on our business. Like other financial institutions, our business relies upon the ability and willingness of our customers to transact business with us, including banking, borrowing and other financial transactions. A strong and stable economy at each of the local, federal and global levels is often a critical component of consumer confidence and typically correlates positively with our customers’ ability and willingness to transact certain types of business with us. Local and global events outside of our control which disrupt the New Jersey, New York, United States and/or global economy may therefore negatively impact our business and financial condition. A public health crisis such as the COVID-19 pandemic is no exception, and its adverse health and economic effects may adversely impact our business and financial condition.

Note 2 - Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The amendments in this ASU defer the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective upon issuance. The FASB had previously issued 2020-04 - Facilitation of the Effects of Reference Rate Reform on Financial Reporting and related amendments in 2020 to ease the potential burden in accounting for reference rate reform. The amendments in ASU 2020-04 were elective and applied to all entities that have contracts, hedging relationships, and other transactions that reference the London Inter-bank Offer Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The Company does not expect such adoption of the new ASU to have an impact on the Company’s consolidated financial instruments.

The Company adopted ASU 2016-13 on January 1, 2023 for all financial assets measured at amortized cost and off-balance sheet credit exposures using the modified retrospective method. Results for the three and nine months ended September 30, 2023 are presented under Accounting Standards Codification 326, Financial Instruments – Credit Losses, while prior period amounts continue to be reported with previously applicable GAAP and have not been restated. Effective January 1, 2023, the Company recorded a $4.2 million decrease in allowance for credit losses on loans that is referred to as the current expected credit loss (“CECL”) methodology (previously allowance for loan losses), an elimination of $1.1 million of reserves related to acquired loans, and a $1.3 million increase related to allowance for off-balance sheet credit exposures included in other liabilities section of the consolidated statements of financial condition, which resulted in a total cumulative effect adjustment of $2.9 million and an increase to retained earnings a component of the stockholders’ equity (net of tax). Further information regarding the impact of CECL can be found in Note 7 – Loan Receivable and Allowance for Credit Losses.

Allowance for Credit Losses

The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated statement of financial condition. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the consolidated statement of financial condition in other liabilities while the provision for credit losses related to unfunded commitments is reported in other non-interest expense.

Allowance for Credit Losses on Loans Receivable

The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. Individually evaluated loans are primarily non-accrual and collateral dependent loans. Furthermore, the Company evaluates the pooling methodology at least annually to ensure that loans with similar risk characteristics are pooled appropriately. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off.

The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. The Company calculates estimated credit losses for these loan segments using quantitative models and qualitative factors. Further information on loan segmentation and the credit loss estimation is included in Note 7 – Loan Receivables and Allowance for Credit Losses.

Individually Evaluated Loans

On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan.

7

Allowance for Credit Losses on Off-Balance Sheet Commitments

The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated statement of financial condition and the related credit expense is recorded in other non-interest expense in the consolidated statements of income.

Allowance for Credit Losses on Available for Sale Securities

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors.  If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rate by major agencies and have a long history of no credit losses.

Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Note 3 – Reclassification

Certain amounts have been reclassified to conform to the current period’s presentation. These changes had no effect on the Company’s results of operations or financial position.

Note 4 – Equity Incentive Plans

Equity Incentive Plans

Under the 2018 Equity Incentive Plan, on January 12, 2022, awards of 33,000 shares of restricted stock, in aggregate, were declared for members of the Board of Directors of the Bank and the Company, which vest over a 4-year period, commencing on the anniversary of the award date. On September 30, 2022, awards of 36,000 shares of restricted stock, in aggregate, were declared for certain executive officers of the Bank and the Company, which fully vested on November 30, 2022.

On January 31, 2023, awards of 27,000 shares of restricted stock, in aggregate were declared for members of the Board of Directors of the Bank and the Company, which vest over a 4-year period, commencing on the anniversary of the award date.

The Company, under the plan approved by its shareholders on April 27, 2023 (“2023 Equity Incentive Plan”), authorized the issuance of up to 1,000,000 shares of common stock of the Company pursuant to grants of stock options, restricted stock awards, restricted stock units, and performance awards. Employees and directors of the Company and the Bank are eligible to participate in the 2023 Equity Incentive Plan. All stock options will be granted in the form of either "incentive" stock options or "non-qualified" stock options. Incentive stock options have certain tax advantages that must comply with the requirements of Section 422 of the Internal Revenue Code. Only employees are permitted to receive incentive stock options.

On June 30, 2023, an award of 25,252 shares of restricted stock was declared for a director and executive officer of the Bank and the Company, which fully vests on the anniversary of the award date.

‎

8

Note 4 – Equity Incentive Plans (Continued)

The following table presents a summary of the status of the Company’s restricted shares as of September 30, 2023 and 2022.

	Number of Shares Awarded		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2023	48,150	$	14.83
Granted	52,252		15.01
Vested	(13,650)		14.60
Forfeited	-		-
Non-vested at September 30, 2023	86,752	$	14.98

	Number of Shares Awarded		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2022	26,700	$	12.89
Granted	69,000		17.05
Vested	(9,150)		13.91
Forfeited	-		-
Non-vested at September 30, 2022	86,550	$	16.19

Restricted stock expense for the nine months ended September 30, 2023 and September 30, 2022 was $303,000 and $278,000, respectively. Expected future expenses relating to the non-vested restricted shares outstanding as of September 30, 2023 was approximately $960,000 over a weighted average period of 2.25 years.

The following table presents a summary of the status of the Company’s outstanding stock option awards as of September 30, 2023.

	Number of Option Shares		Range of Exercise Prices		Weighted Average Exercise Price
Outstanding at January 1, 2023	1,036,975	$	9.03-13.68	$	11.72
Options granted	-		-		-
Options exercised	(61,000)		9.03		9.03
Options forfeited	-		-		-
Options expired	-		-		-
Outstanding at September 30, 2023	975,975	$	10.55-13.68	$	11.89

As of September 30, 2023, stock options which were granted and were exercisable totaled 800,895. It is Company policy to issue new shares upon share option exercise.

Compensation expense for the nine months ended September 30, 2023 and September 30, 2022 was $99,000 and $180,000, respectively. Expected future compensation expense relating to the 175,080 shares of unvested options outstanding as of September 30, 2023 was $302,000 over a weighted average period of 3.12 years.

‎

9

Note 5 – Net Income per Common Share

Basic net income per common share is computed by dividing net income less dividends on preferred stock by the weighted average number of shares of common stock outstanding. The diluted net income per common share is computed by adjusting the weighted average number of shares of common stock outstanding to include the effects of outstanding stock options, if dilutive, using the treasury stock method. Dilution is not applicable in periods of net loss. For the three and nine months ended September 30, 2023 and 2022, the difference in the weighted average number of basic and diluted common shares was due solely to the effects of outstanding stock options. For the three and nine months ended September 30, 2023 and 2022, there were no outstanding options considered to be anti-dilutive.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations:

	For the Three Months Ended September 30,
	2023					2022
		Income	Shares		Per Share		Income	Shares		Per Share
		(Numerator)	(Denominator)		Amount		(Numerator)	(Denominator)		Amount
	(In Thousands, except per share data)
Basic earnings per share:
Income available to common stockholders	$	6,538	16,830	$	0.39	$	13,218	16,982	$	0.78
Effect of dilutive securities:
Stock options		-	24				-	374
Diluted earnings per share:
Income available to common stockholders	$	6,538	16,854	$	0.39	$	13,218	17,356	$	0.76

	For the Nine Months Ended September 30,
	2023					2022
		Income	Shares		Per Share		Income	Shares		Per Share
		(Numerator)	(Denominator)		Amount		(Numerator)	(Denominator)		Amount
	(In Thousands, except per share data)
Basic earnings per share:
Income available to common stockholders	$	22,901	16,868	$	1.36	$	32,883	16,986	$	1.94
Effect of dilutive securities:
Stock options		-	83				-	383
Diluted earnings per share:
Income available to common stockholders	$	22,901	16,951	$	1.35	$	32,883	17,369	$	1.89

Note 6 - Securities

Equity Securities

Equity securities are defined to include (a) preferred, common and other ownership interests in entities including partnerships, joint ventures and limited liability companies and (b) rights to acquire or dispose of ownership interest in entities at fixed or determinable prices.

The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months and nine months ended September 30, 2023 and 2022:

	For the three months ended September 30,				For the nine months ended September 30,
(In Thousands)	2023		2022		2023		2022
Net losses recognized during the period on equity securities held at the reporting date	$	(436)	$	(559)	$	(4,157)	$	(5,487)
Net losses recognized during the period on equity securities sold during the period		(58)		-		(233)		(59)
Realized and unrealized losses on equity investments during the reporting period	$	(494)	$	(559)	$	(4,390)	$	(5,546)

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10

Note 6 - Securities (continued)

Debt Securities Available for Sale

The following tables present by maturity the amortized cost, gross unrealized gains and losses on, and fair value of, securities available for sale as of September 30, 2023 and December 31, 2022:

	September 30, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
More than one to five years	$	708	$	-	$	41	$	667
More than five to ten years		4,388		-		381		4,007
More than ten years		33,604		-		4,613		28,991
Sub-total:		38,700		-		5,035		33,665
Corporate Debt securities:
More than one to five years		6,000		-		115		5,885
More than five to ten years		53,564		-		6,942		46,622
Sub-total:		59,564		-		7,057		52,507
Total securities	$	98,264	$	-	$	12,092	$	86,172

	December 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
More than five to ten years		5,445		-		350		5,095
More than ten years		23,210		-		3,435		19,775
Sub-total:		28,655		-		3,785		24,870
Corporate Debt securities:
Due within one year		7,321		-		91		7,230
More than five to ten years		59,629		-		4,005		55,624
Sub-total:		66,950		-		4,096		62,854
Municipal obligations:
Due after ten years		3,997		-		6		3,991
Sub-total:		3,997		-		6		3,991
Total Debt Securities Available for Sale	$	99,602	$	-	$	7,887	$	91,715

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11

Note 6 - Securities (continued)

The unrealized losses, categorized by the length of time of continuous loss position, and fair value of related securities available for sale were as follows:

	12 Months or Less				More than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
September 30, 2023
Residential Mortgage-backed securities	$	11,987	$	489	$	21,677	$	4,546	$	33,664	$	5,035
Corporate Debt securities		22,980		2,506		28,228		4,551		51,208		7,057
	$	34,967	$	2,995	$	49,905	$	9,097	$	84,872	$	12,092
December 31, 2022
Residential Mortgage-backed securities	$	17,362	$	2,022	$	7,508	$	1,763	$	24,870	$	3,785
Corporate Debt Securities		51,607		3,199		9,948		897		61,555		4,096
Municipal Obligations		3,991		6		-		-		3,991		6
	$	72,960	$	5,227	$	17,456	$	2,660	$	90,416	$	7,887

Note 7 - Loans Receivable and Allowance for Credit Losses

The following tables present the recorded investment in loans receivable as of September 30, 2023 and December 31, 2022 by segment and class:

	September 30, 2023		December 31, 2022
		(In Thousands)
Residential one-to-four family	$	251,845	$	250,123
Commercial and multi-family		2,444,887		2,345,229
Construction		185,202		144,931
Commercial business(1)		370,512		282,007
Home equity(2)		66,046		56,888
Consumer		3,647		3,240
		3,322,139		3,082,418
Less:
Deferred loan fees, net		(4,498)		(4,714)
Allowance for credit losses(3)		(31,914)		(32,373)
Total Loans, net	$	3,285,727	$	3,045,331

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

(3) The Company adopted ASU 2016-13 on January 1, 2023 with a modified retrospective approach. Accordingly, at September 30, 2023, the allowance for credit losses was determined in accordance with ASC 326, “Financial Instruments-Credit Losses”.
‎

12

Note 7 – Loans Receivable and Allowance for Credit Losses (Continued)

Allowance for Credit Losses

The Company engages a third-party vendor to assist in the CECL calculation and has established a robust internal governance framework to oversee the quarterly estimation process for the allowance for credit losses (“ACL”). The ACL calculation methodology relies on regression-based discounted cash flow (“DCF”) models that correlate relationships between certain financial metrics and external market and macroeconomic variables. Following are some of the key factors and assumptions that are used in the Company’s CECL calculations:

methods based on probability of default and loss given default which are modeled based on macroeconomic scenarios;

a reasonable and supportable forecast period determined based on management’s current review of macroeconomic environment;

a reversion period after the reasonable and supportable forecast period;

estimated prepayment rates based on the Company’s historical experience and future macroeconomic environment;

estimated credit utilization rates based on the Company’s historical experience and future macroeconomic environment; and

incorporation of qualitative factors not captured within the modeled results. The qualitative factors include but are not limited to changes in lending policies, business conditions, changes in the nature and size of the portfolio, portfolio concentrations, and external factors such as competition.

Allowance for credit losses are aggregated for the major loan segments, with similar risk characteristics, summarized below. However, for the purposes of calculating the reserves, these segments may be further broken down into loan classes by risk characteristics that include but are not limited to regulatory call codes, industry type, geographic location, and collateral type.

Residential one-to-four family real estate loans involve certain risks such as interest rate risk and risk of non-repayment. Adjustable-rate residential real estate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. At the same time, the marketability of the underlying properties may be adversely affected by higher interest rates. Repayment risk may be affected by a number of factors including, but not necessarily limited to, job loss, divorce, illness and personal bankruptcy of the borrower.

Commercial and multi-family real estate lending entails additional risks as compared with residential family property lending. Such loans typically involve large loan balances to single borrowers or groups of related borrowers. The payment experience on such loans is typically dependent on the successful operation of the real estate project. The success of such projects is sensitive to changes in supply and demand conditions in the market for commercial real estate as well as general economic conditions.

Construction lending is generally considered to involve a high risk due to the concentration of principal in a limited number of loans and borrowers and the effects of the general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost (including interest) of the project. The nature of these loans is such that they are generally difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not necessarily pre-sold and thus pose a greater potential risk to the Bank than construction loans to individuals on their personal residence.

Commercial business lending, including lines of credit, is generally considered higher risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on the business. Commercial business loans are primarily secured by inventories and other business assets. In many cases, any repossessed collateral for a defaulted commercial business loans will not provide an adequate source of repayment of the outstanding loan balance.

Home equity lending entails certain risks such as interest rate risk and risk of non-repayment. The marketability of the underlying property may be adversely affected by higher interest rates, decreasing the collateral value securing the loan. Repayment risk can be affected by job loss, divorce, illness and personal bankruptcy of the borrower. Home equity line of credit lending entails securing an equity interest in the borrower’s home. In many cases, the Bank’s position in these loans is as a junior lien holder to another institution’s superior lien. This type of lending is often priced on an adjustable rate basis with the rate set at or above a predefined index. Adjustable-rate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default.

Other consumer loans generally have more credit risk because of the type and nature of the collateral and, in certain cases, the absence of collateral. Consumer loans generally have shorter terms and higher interest rates than other lending. In addition, consumer lending collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. In many cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan.

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13

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table sets forth the activity in the Company’s allowance for credit losses for the three and nine months ended September 30, 2023, and the related portion of the allowances for credit losses that is allocated to each loan class, as of September 30, 2023 (in thousands):

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)		Home Equity (2)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance, July 1, 2023	$	2,453	$	15,045	$	4,090	$	7,864	$	722	$	31		-	$	30,205
Charge-offs:		-		-		-		(515)				-		-		(515)
Recoveries:		14		-		-		5		-		-		-		19
Provision (benefit):		(23)		(595)		573		2,297		(54)		7		-		2,205
Ending Balance, September 30, 2023		2,444		14,450		4,663		9,651		668		38		-		31,914
Ending Balance attributable to loans:
Individually evaluated		-		-		608		2,164		-		-		-		2,772
Collectively evaluated		2,444		14,450		4,055		7,487		668		38		-		29,142
Ending Balance, September 30, 2023		2,444		14,450		4,663		9,651		668		38		-		31,914
Loans Receivables:
Individually evaluated		355		23,843		4,931		6,527		212		-		-		35,868
Collectively evaluated		251,490		2,421,044		180,271		363,985		65,834		3,647		-		3,286,271
Total Gross Loans:	$	251,845	$	2,444,887	$	185,202	$	370,512	$	66,046	$	3,647	$	-	$	3,322,139
(1) Includes business lines of credit.
(2) Includes home equity lines of credit.

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)			Home Equity (2)	Consumer		Unallocated		Total
Allowance for credit losses:
Ending Balance December 31, 2022		2,474		21,749		2,094		5,367		485		24		180		32,373
Effect of adopting ASU No. 2016-13 ("CECL")		144		(7,123)		1,387		1,418		182		7		(180)		(4,165)
Beginning Balance, January 1, 2023	$	2,618	$	14,626	$	3,481	$	6,785	$	667	$	31	$	-	$	28,208
Charge-offs:		-		-		-		(555)		-		-		-		(555)
Recoveries:		38		-		-		30		16		-		-		84
Provision (benefit):		(212)		(176)		1,182		3,391		(15)		7		-		4,177
Ending Balance, September 30, 2023	$	2,444	$	14,450	$	4,663	$	9,651	$	668	$	38	$	-	$	31,914

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

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14

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table sets forth the activity in the Company’s allowance for credit losses for the three and nine months ended September 30, 2022, and the related portion of the allowances for credit losses that is allocated to each loan class, as of September 30, 2022 (in thousands): 

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)		Home Equity (2)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance, July 1, 2022	$	2,565	$	21,157	$	2,348	$	7,639	$	387	$	17	$	-	$	34,113
Charge-offs:		-		-		-		(931)		-		-		-		(931)
Recovery:		7		-		-		2		4		-		-		13
Provision (benefit):		(374)		390		96		(993)		75		3		803		-
Ending Balance September 30, 2022	$	2,198	$	21,547	$	2,444	$	5,717	$	466	$	20	$	803	$	33,195
Ending Balance attributable to loans:
Individually evaluated	$	204	$	-	$	519	$	3,509	$	6	$	-	$	-	$	4,238
Collectively evaluated		1,994		21,547		1,925		2,208		460		20		803		28,957
Ending Balance September 30, 2022	$	2,198	$	21,547	$	2,444	$	5,717	$	466	$	20	$	803	$	33,195
Loans Receivables:
Individually evaluated	$	4,914	$	27,090	$	3,180	$	4,607	$	733	$	-	$	-	$	40,524
Collectively evaluated		237,324		2,137,230		149,923		201,054		55,331		2,545		-		2,783,407
Total Gross Loans:	$	242,238	$	2,164,320	$	153,103	$	205,661	$	56,064	$	2,545	$	-	$	2,823,931

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)			Home Equity (2)	Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance, January 1, 2022	$	4,094	$	22,065	$	2,231	$	8,000	$	533	$	14	$	182	$	37,119
Charge-offs:		-		-		-		(1,703)		-		-		-		(1,703)
Recovery:		9		-		-		138		9		198		-		354
Provision (benefit):		(1,905)		(518)		213		(718)		(76)		(192)		621		(2,575)
Ending Balance, September 30, 2022	$	2,198	$	21,547	$	2,444	$	5,717	$	466	$	20	$	803	$	33,195

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

The following table sets forth the amount recorded in loans receivable at December 31, 2022. The table also details the amount of total loans receivable that are evaluated individually, and collectively, for impairment and the related portion of the allowance for credit losses that is allocated to each loan class (in thousands):

		Residential		Commercial & Multi-family		Construction		Commercial Business (1)		Home Equity (2)		Consumer		Unallocated		Total
Allowance for credit losses:
Ending Balance attributable to loans:
Individually evaluated	$	196	$	-	$	518	$	2,066	$	4	$	-	$	-	$	2,784
Collectively evaluated		2,278		21,749		1,576		3,301		481		24		180		29,589
Ending Balance, December 31, 2022	$	2,474	$	21,749	$	2,094	$	5,367	$	485	$	24	$	180	$	32,373
Loans Receivables:
Individually evaluated	$	5,147	$	15,397	$	3,180	$	3,821	$	727	$	-	$	-	$	28,272
Collectively evaluated		244,976		2,329,832		141,751		278,186		56,161		3,240		-		3,054,146
Total Gross Loans:	$	250,123	$	2,345,229	$	144,931	$	282,007	$	56,888	$	3,240	$	-	$	3,082,418

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

‎

15

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table presents the activity in the allowance for credit losses on off-balance sheet exposures for the three and nine months ended September 30, 2023 (in thousands):

		Three Months Ended September 30, 2023		Nine Months Ended September 30, 2023
		(In thousands)		(In thousands)
Allowance for Credit Losses:
Beginning Balance	$	254	$	-
Impact of adopting ASU No. 2016-13 ("CECL") effective January 1, 2022		-		1,266
Provision (benefit)		148		(864)
Balance at September 30, 2023	$	402	$	402

‎

16

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The Company adopted Accounting Standards Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The Company did not have any loans that were both experiencing financial difficulty and modified during the nine months ending September 30, 2023.

The following table sets forth the delinquency status of total loans receivable as of September 30, 2023:

													Loans Receivable
	30-59 Days		60-90 Days		Greater Than		Total Past				Total Loans		>90 Days
	Past Due		Past Due		90 Days		Due		Current		Receivable		and Accruing
		(In Thousands)
Residential one-to-four family	$	50	$	856	$	178	$	1,084	$	250,761	$	251,845	$	-
Commercial and multi-family		12,195		6,378		3,267		21,840		2,423,047		2,444,887		-
Construction		-		2,045		2,886		4,931		180,271		185,202		-
Commercial business(1)		2,056		3,095		798		5,949		364,563		370,512		-
Home equity(2)		472		164		-		636		65,410		66,046		-
Consumer		-		1		-		1		3,646		3,647		-
Total	$	14,773	$	12,539	$	7,129	$	34,441	$	3,287,698	$	3,322,139	$	-

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

The following table sets forth the delinquency status of total loans receivable at December 31, 2022:

													Loans Receivable
	30-59 Days		60-90 Days		Greater Than		Total Past				Total Loans		>90 Days
	Past Due		Past Due		90 Days		Due		Current		Receivable		and Accruing
		(In Thousands)
Residential one-to-four family	$	253	$	314	$	-	$	567	$	249,556	$	250,123	$	-
Commercial and multi-family		2,163		428		-		2,591		2,342,638		2,345,229		-
Construction		-		-		3,180		3,180		141,751		144,931		-
Commercial business(1)		190		1,115		1,086		2,391		279,616		282,007		-
Home equity(2)		699		-		-		699		56,189		56,888		-
Consumer		-		-		-		-		3,240		3,240		-
Total	$	3,305	$	1,857	$	4,266	$	9,428	$	3,072,990	$	3,082,418	$	-

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

17

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The table below sets forth the amounts and types of non-accrual loans in the Bank’s loan portfolio at September 30, 2023 and December 31, 2022, respectively. Loans are placed on non-accrual status when they become more than 90 days delinquent, or when the collection of principal and/or interest become doubtful.

As of September 30, 2023, and December 31, 2022, non-accrual loans differed from the amount of total loans past due 90 days due to loans 90 days past due and still accruing, or loans that were previously 90 days past due which are maintained on non-accrual status for a minimum of six months until the borrower has demonstrated its ability to satisfy the terms of the loan. There were $303,000 at September 30, 2023 and $843,000 at December 31, 2022 in non-accrual loans that were less than ninety days past due.

		As of September 30, 2023		As of December 31, 2022
		(In Thousands)		(In Thousands)
Non-Accruing Loans:
Residential one-to-four family	$	178	$	243
Commercial and multi-family		3,267		346
Construction		2,886		3,180
Commercial business(1)		1,600		1,340
Total	$	7,931	$	5,109

_________

(1) Includes business lines of credit.

Had non-accrual loans been performing in accordance with their original terms, the interest income recognized for the nine months ended September 30, 2023 and the twelve months ended December 31, 2022 would have been approximately $1.5 million and $1.0 million, respectively. The Bank has not committed to lend additional funds to the borrowers whose loans have been placed on non-accrual status. At September 30, 2023 and December 31, 2022 there were no loans more than 90 days past due and still accruing interest.

‎

18

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

Criticized and Classified Assets

Company policies provide for a classification system for problem assets. Under this classification system, problem assets are classified as “substandard,” “doubtful,” or “loss.”

The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies. The grades assigned and definitions are as follows, and loans graded excellent, above average, good and watch list (risk ratings 1-5) are treated as “pass” for grading purposes. The “criticized” risk rating (6) and the “classified” risk ratings (7-9) are detailed below:

6 – Special Mention- Loans currently performing but with potential weaknesses including adverse trends in borrower’s operations, credit quality, financial strength, or possible collateral deficiency.

7 – Substandard- Loans that are inadequately protected by current sound worth, paying capacity, and collateral support. Loans on “non-accrual” status. The loan needs special and corrective attention.

8 – Doubtful- Weaknesses in credit quality and collateral support make full collection improbable, but pending reasonable factors remain sufficient to defer the loss status.

9 – Loss- Continuance as a bankable asset is not warranted. However, this does not preclude future attempts at partial recovery.

‎

19

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating at September 30, 2023 and gross charge-offs for the nine months ended September 30, 2023.

Loans by Year of Origination at September 30, 2023
		2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
Residential one-to-four family
Pass	$	16,805	$	54,608	$	38,402	$	31,622	$	12,184	$	96,050	$	-	$	-	$	249,671
Special Mention		-		496		91		-		-		91		-		-		678
Substandard		-		-		1,318		-		-		178		-		-		1,496
Total one-to-four family	$	16,805	$	55,104	$	39,811	$	31,622	$	12,184	$	96,319	$	-	$	-	$	251,845
Commercial and multi-family
Pass	$	219,180	$	822,626	$	226,073	$	217,855	$	52,614	$	848,504	$	1,922	$	-	$	2,388,774
Special Mention		-		-		-		-		-		26,690		-		-		26,690
Substandard		-		3,071		4,079		3,575		-		18,698		-		-		29,423
Total Commercial and multi-family	$	219,180	$	825,697	$	230,152	$	221,430	$	52,614	$	893,892	$	1,922	$	-	$	2,444,887
Construction
Pass	$	15,108	$	75,672	$	57,434	$	20,499	$	-	$	5,878	$	5,681	$	-	$	180,272
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		1,458		-		586		-		2,886		-		-		4,930
Total Construction	$	15,108	$	77,130	$	57,434	$	21,085	$	-	$	8,764	$	5,681	$	-	$	185,202
Commercial business
Pass	$	2,553	$	305	$	3,314	$	4,333	$	7,143	$	36,487	$	304,133	$	-	$	358,268
Special Mention		-		-		-		-		369		1,666		3,582		-		5,617
Substandard		-		-		-		-		-		3,597		3,030		-		6,627
Total Commercial business	$	2,553	$	305	$	3,314	$	4,333	$	7,512	$	41,750	$	310,745	$	-	$	370,512
Home equity
Pass	$	4,189	$	1,704	$	565	$	782	$	1,306	$	6,601	$	50,074	$	496	$	65,717
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		117		212		329
Total Home equity	$	4,189	$	1,704	$	565	$	782	$	1,306	$	6,601	$	50,191	$	708	$	66,046
Consumer
Pass	$	1,463	$	493	$	1,524	$	112	$	47	$	-	$	8	$	-	$	3,647
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total Consumer	$	1,463	$	493	$	1,524	$	112	$	47	$	-	$	8	$	-	$	3,647
Total Loans	$	259,298	$	960,433	$	332,800	$	279,364	$	73,663	$	1,047,326	$	368,547	$	708	$	3,322,139
Gross charge-offs	$	250	$	305	$	-	$	-	$	-	$	-	$	-	$	-	$	555

‎

20

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating at December 31, 2022.

Loans by Year of Origination at December 31, 2022
		2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
Residential one-to-four family
Pass	$	56,893	$	40,465	$	33,019	$	12,959	$	23,918	$	82,144	$	-	$	-	$	249,398
Special Mention		-		-		-		-		-		303		-		-		303
Substandard		-		179		-		-		-		243		-		-		422
Total one-to-four family	$	56,893	$	40,644	$	33,019	$	12,959	$	23,918	$	82,690	$	-	$	-	$	250,123
Commercial and multi-family
Pass	$	854,299	$	234,441	$	235,830	$	55,752	$	312,353	$	628,191	$	-	$	-	$	2,320,866
Special Mention		-		-		-		-		-		14,183		-		-		14,183
Substandard		599		-		-		-		8,000		1,581		-		-		10,180
Total Commercial and multi-family	$	854,898	$	234,441	$	235,830	$	55,752	$	320,353	$	643,955	$	-	$	-	$	2,345,229
Construction
Pass	$	51,783	$	58,827	$	17,518	$	-	$	1,794	$	4,031	$	7,798	$	-	$	141,751
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		3,180		-		-		-		3,180
Total Construction	$	51,783	$	58,827	$	17,518	$	-	$	4,974	$	4,031	$	7,798	$	-	$	144,931
Commercial business
Pass	$	70	$	5,331	$	5,470	$	8,070	$	22,940	$	19,487	$	212,402	$	-	$	273,770
Special Mention		-		-		-		431		-		1,600		2,385		-		4,416
Substandard		-		-		-		-		2,686		758		377		-		3,821
Total Commercial business	$	70	$	5,331	$	5,470	$	8,501	$	25,626	$	21,845	$	215,164	$	-	$	282,007
Home equity
Pass	$	1,541	$	643	$	830	$	1,390	$	1,465	$	6,437	$	43,857	$	513	$	56,676
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		212		212
Total Home equity	$	1,541	$	643	$	830	$	1,390	$	1,465	$	6,437	$	43,857	$	725	$	56,888
Consumer
Pass	$	994	$	2,034	$	139	$	67	$	-	$	-	$	6	$	-	$	3,240
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total Consumer	$	994	$	2,034	$	139	$	67	$	-	$	-	$	6	$	-	$	3,240
Total Loans	$	966,179	$	341,920	$	292,806	$	78,669	$	376,336	$	758,958	$	266,825	$	725	$	3,082,418

‎

21

Note 8 – Stockholders’ Equity

On September 14, 2023, the Company redeemed 22 outstanding shares of its Series H 3.5% Noncumulative Perpetual Preferred Stock, at their face value of $10,000 per share, for a total redemption amount of $220,000.

On September 23, 2022, the Company closed a round of private placement of Series I Noncumulative Perpetual Preferred Stock, par value $0.01 per share (the “Series I Preferred Stock”), resulting in gross proceeds of $4,440,000 for 444 shares.

On May 1, 2022, the Company redeemed all 940 outstanding shares of it’s Series D 4.5% Noncumulative Perpetual Preferred Stock, at their face value of $10,000 per share, for a total redemption amount of $9.4 million.

On March 24, 2022, BCB Bancorp, Inc. (the “Company”) closed a round of private placement of Series I Noncumulative Perpetual Preferred Stock, par value $0.01 per share (the “Series I Preferred Stock”), resulting in gross proceeds of $2,620,000 for 260 shares.

On February 4, 2022, the Company redeemed all 533 outstanding shares of its Series G 6.0% Noncumulative Perpetual Preferred Stock, at their face value of $10,000 per share, for a total redemption amount of $5.3 million.

Note 9 – Bank-Owned Life Insurance

BOLI involves life insurance purchased by the Bank on a chosen group of employees, and the Bank is owner and beneficiary of the policies. At September 30, 2023 the Bank had $72.8 million in BOLI. BOLI is recorded at its net realizable value.

Note 10 – Goodwill and Other Intangible Assets

The Company’s intangible assets consist of goodwill and core deposit intangibles in connection with the acquisition of IA Bancorp, Inc. as of April 17, 2018. The initial recording of goodwill and other intangible assets requires subjective judgments concerning estimates of the fair value of the acquired assets and assumed liabilities. Goodwill is not amortized but is subject to annual tests for impairment or more often if events or circumstances indicate it may be impaired.

The Company’s core deposit intangibles are amortized on an accelerated basis using an estimated life of 10 years and in accordance with U.S. GAAP are evaluated annually for impairment. An impairment loss will be recognized if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset.

The Company believes that the fair values of its goodwill and other intangible assets were in excess of their carrying amounts and there was no impairment at September 30, 2023.

Amortization expense of the core deposit intangibles was $94,000 and $37,000 for the nine months ended September 30, 2023 and September 30, 2022, respectively. The unamortized balance of the core deposit intangibles and the amount of goodwill at September 30, 2023 was $35,000 and $5.2 million, respectively. The unamortized balance of the core deposits intangibles and the amount of goodwill at December 31, 2022 was $129,000 and $5.2 million, respectively.

‎

22

Note 11 – Fair Values of Financial Instruments

Guidance on fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).

An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Assets that the Company measured at fair value on a recurring basis were as follows (In thousands):

			(Level 1)		(Level 2)
			Quoted Prices in		Significant		(Level 3)
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Total		Assets		Inputs		Inputs
As of September 30, 2023:
Securities
Debt Securities Available for Sale	$	86,172	$	-	$	86,172	$	-
Marketable Equities	$	8,272	$	8,272	$	-	$	-
Total Securities	$	94,444	$	8,272	$	86,172	$	-
As of December 31, 2022:
Securities
Debt Securities Available for Sale	$	91,715	$	-	$	91,715	$	-
Marketable Equities	$	17,686	$	17,686	$	-	$	-
Total Securities	$	109,401	$	17,686	$	91,715	$	-

There were no transfers of assets or liabilities into or out of Level 1, Level 2, or Level 3 of the fair value hierarchy during the three months ended September 30, 2023 and 2022.
‎
‎There were no liabilities measured at fair value on a recurring basis at September 30, 2023 or December 31, 2022.

Assets that the Company measured at fair value on a nonrecurring basis were as follows (In thousands):

			(Level 1)		(Level 2)
			Quoted Prices in		Significant		(Level 3)
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Total		Assets		Inputs		Inputs
As of September 30, 2023
Individually Evaluated	$	2,876	$	-	$	-	$	2,876
Other real estate owned	$	75	$	-	$	-	$	75
As of December 31, 2022:
Individually Evaluated	$	5,587	$	-	$	-	$	5,587
Other real estate owned	$	75	$	-	$	-	$	75

‎There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2023 or December 31, 2022.
‎

23

Note 11 – Fair Values of Financial Instruments (Continued)

The following tables present additional quantitative information as of September 30, 2023 and December 31, 2022 about assets measured at fair value on a nonrecurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value. (Dollars in thousands):

Quantitative Information about Level 3 Fair Value Measurements
		Fair Value	Valuation	Unobservable
		Estimate	Techniques	Input	Range
September 30, 2023:
Individually Evaluated Loans	$	2,876	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%
Other real estate owned	$	75	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%

		Fair Value	Valuation	Unobservable
		Estimate	Techniques	Input	Range
December 31, 2022:
Individually Evaluated Loans	$	5,587	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%
Other real estate owned	$	75	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not objectively determinable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments as of September 30, 2023 and December 31, 2022.

Cash and Cash Equivalents and Interest-Earning Time Deposits (Carried at Cost)

The carrying amounts reported in the consolidated statements of financial condition for cash and short-term instruments approximate fair values.

Securities (Carried at Fair Value)

The fair value of securities is determined by obtaining quoted market prices on nationally recognized security exchanges (Level 1) or, by matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices.

Loans Held for Sale (Lower of Cost or Market)

The fair value of loans held for sale is determined, when possible, using quoted secondary-market prices. If no such quoted prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for specific attributes of that loan. Loans held for sale are carried at the lower of cost or fair value.

Loans Receivable (Carried at Cost)

The fair values of loans, except for certain individually evaluated loans, are estimated using discounted cash flow analyses, using market rates at the date of the Statement of Financial Condition that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

‎

24

Note 11 – Fair Values of Financial Instruments (Continued)

Individually Evaluated Loans (Generally Carried at Fair Value)

Individually evaluated loans are those for which the Company has measured and recorded credit losses based on the fair value of the loan’s collateral, less estimated costs to sell. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value at September 30, 2023 and December 31, 2022 consisted of the loan balances of $7.1 million net of an allowance for credit losses of $4.2 million and $8.4 million net of an allowance for credit losses of $2.8 million, respectively.

Other Real Estate Owned (Generally Carried at Lower of Cost or Fair Value)

Real Estate Owned is generally carried at fair value less estimated costs to sell which is determined based upon independent third-party appraisals of the properties or based upon the expected proceeds from a pending sale. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

FHLB of New York Stock (Carried at Cost)

The carrying amount of restricted investment in bank stock approximates fair value and considers the limited marketability of such securities.

Accrued Interest Receivable and Payable (Carried at Cost)

The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value.

Deposits (Carried at Cost)

The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings and money market accounts1) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Debt Including Subordinated Debentures (Carried at Cost)

Fair values of debt are estimated using discounted cash flow analysis, based on quoted prices for new long-term debt with similar credit risk characteristics, terms and remaining maturity. Prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party.

Off-Balance Sheet Financial Instruments (Disclosed at Cost)

Fair values for the Company’s off-balance sheet financial instruments (lending commitments and unused lines of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. The fair value of these commitments was deemed immaterial and is not presented in the accompanying table.

‎

25

Note 11 – Fair Values of Financial Instruments (Continued)

The carrying values and estimated fair values of financial instruments were as follows as of September 30, 2023 and December 31, 2022:

		As of September 30, 2023
					Quoted Prices in Active		Significant		Significant
	Carrying				Markets for Identical Assets		Other Observable Inputs		Unobservable Inputs
	Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	251,916	$	251,916	$	251,916	$	-	$	-
Interest-earning time deposits		735		735		-		735		-
Debt securities available for sale		86,172		86,172		-		86,172		-
Equity investments		8,272		8,272		8,272		-		-
Loans held for sale		472		472		-		472		-
Loans receivable, net		3,285,727		3,088,826		-		-		3,088,826
FHLB of New York stock, at cost		31,629		31,629		-		31,629		-
Accrued interest receivable		16,175		16,175		-		16,175		-
Financial liabilities:
Deposits		2,819,556		2,813,939		1,740,300		1,073,639		-
Borrowings		622,674		615,575		-		615,575		-
Subordinated debentures		37,624		39,262		-		39,262		-
Accrued interest payable		5,735		5,735		-		5,735		-

		As of December 31, 2022
					Quoted Prices in Active		Significant		Significant
	Carrying				Markets for Identical Assets		Other Observable Inputs		Unobservable Inputs
	Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	229,359	$	229,359	$	229,359	$	-	$	-
Interest-earning time deposits		735		735		-		735		-
Debt securities available for sale		91,715		91,715		-		91,715		-
Equity investments		17,686		17,686		17,686		-		-
Loans held for sale		658		658		-		658		-
Loans receivable, net		3,045,331		2,876,925		-		-		2,876,925
FHLB of New York stock, at cost		20,113		20,113		-		20,113		-
Accrued interest receivable		13,455		13,455		-		13,455		-
Financial liabilities:
Deposits		2,811,607		2,499,978		1,713,754		786,224		-
Debt		382,261		377,227		-		377,227		-
Subordinated debentures		37,508		40,113		-		40,113		-
Accrued interest payable		3,073		3,073		-		3,073		-

‎

26

Note 12 – Subordinated debt

On July 30, 2018, the Company issued $33.5 million of fixed-to-floating rate subordinated debentures (the “Notes”) in a private placement. The Notes have a 10-year term and bore an interest at a fixed annual rate of 5.625% for the first five years of the term (the "Fixed Interest Rate Period"). On August 1, 2023, the interest rate was scheduled to adjust to a floating rate based on the three-month LIBOR plus 2.72% until redemption or maturity (the "Floating Interest Rate Period"). However LIBOR was replaced as the benchmark rate per the discussion below. The Notes are scheduled to mature on August 1, 2028. The Company will pay interest in arrears quarterly during the remaining term of the Notes. The Notes constitute an unsecured and subordinated obligation of the Company and rank junior in right of payment to any senior indebtedness and obligations to general and secured creditors. The Notes qualify as Tier 2 capital for the Company for regulatory purposes, when applicable, and the portion that the Company contributes to the Bank will qualify as Tier 1 capital for the Bank. The additional capital is used for general corporate purposes including organic growth initiatives. Subordinated debt includes associated deferred costs of $0 and $116,000 at September 30, 2023 and December 31, 2022, respectively.

The Company also has $4.1 million of mandatory redeemable trust preferred securities. The interest rate on these floating rate junior subordinated debentures adjusts quarterly, and had been equal to the three-month LIBOR plus 2.65%.

In accordance with the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) and the regulation issued by the Board of Governors of the Federal Reserve System implementing the LIBOR Act, the Company has selected the three-month CME Term SOFR as the applicable successor rate for both the Notes and the trust preferred securities. The calculation of the amount of interest payable, based on the three-month CME Term SOFR, will also include the applicable tenor spread adjustment of 0.26161% per annum as specified in the LIBOR Act.

Note 13 – Lease Obligations

The Company leases 25 of its offices under various operating lease agreements. The leases have remaining terms of one year to 10 years. The leases contain provisions for the payment by the Company of its pro-rata share of real estate taxes, insurance, common area maintenance and other variable expenses. The Company will allocate payments made under such leases between lease and non-lease components. Some leases contain renewal options and options to purchase the assets.

The Company has elected not to recognize a lease liability and a right of use asset for leases with a lease term of 12 or fewer months.

The following tables present certain information related to the Company’s leases (in thousands):

		Three Months Ended September 30, 2023		Three Months Ended September 30, 2022		Nine Months Ended September 30, 2023		Nine Months Ended September 30, 2022
Operating lease expense	$	878	$	964	$	2,710	$	2,804
Variable lease expense-operating leases	$	269	$	258	$	793	$	734

		At September 30, 2023		At December 31, 2022
Supplemental balance sheet information related to leases:
Operating Leases
Operating lease right-of-use assets	$	12,953	$	13,520
Current liabilities	$	812	$	3,062
Operating lease liabilities (noncurrent portion)		13,833		12,218
Imputed Interest		(1,327)		(1,421)
Total operating lease liabilities	$	13,318	$	13,859

The weighted average remaining lease term for operating leases at September 30, 2023 and December 31, 2022 was 5.95 years and 6.49 years, respectively. The weighted average discount rate for operating leases at September 30, 2023 and December 31, 2022 was 2.95 percent and 2.83 percent, respectively.

The following table summarizes the Company’s maturity of lease obligations for operating leases at September 30, 2023 and December 31, 2022 (in thousands):

Maturities of lease liabilities:
		At September 30, 2023		At December 31, 2022
		Operating Leases		Operating Leases
One year or less	$	812	$	3,062
Over one year through three years		5,468		4,766
Over three years through five years		4,341		3,496
Over five years		4,024		3,956
Gross Operating Lease Liabilities	$	14,645	$	15,280
Imputed Interest		(1,327)		(1,421)
Total Operating Lease Liabilities	$	13,318	$	13,859

Note 14 – Subsequent Events

On October 18, 2023, the Board of Directors of the Company declared a cash dividend of $0.16 per share to shareholders of record of its common stock on November 3, 2023, with a payment date of November 17, 2023.

27

ITEM 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This report on Form 10-Q contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, or the PSLRA. Such forward-looking statements, in addition to historical information, involve risk and uncertainties, and are based on the beliefs, assumptions and expectations of our management team. Words such as “expects,” “believes,” “should,” “plans,” “anticipates,” “will,” “potential,” “could,” “intend,” “may,” “outlook,” “predict,” “project,” “would,” “estimated,” “assumes,” “likely,” and variation of such similar expressions are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that we anticipated in our forward-looking statements and future results could differ materially from historical performance.

The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity and capital in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the Federal Reserve. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to:

the global impact of the military conflicts in the Ukraine and the Middle East;

unfavorable economic conditions in the United States generally and particularly in our primary market area;

the Company’s ability to effectively attract and deploy deposits;

changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets;

shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility;

the effects of declines in real estate values that may adversely impact the collateral underlying our loans;

increase in unemployment levels and slowdowns in economic growth;

our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs;

the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios;

the credit risk associated with our loan portfolio;

changes in the quality and composition of the Bank’s loan and investment portfolios;

changes in our ability to access cost-effective funding;

deposit flows;

legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates;

monetary and fiscal policies of the federal and state governments;

changes in tax policies, rates and regulations of federal, state and local tax authorities;

demands for our loan products;

demand for financial services;

competition;

changes in the securities or secondary mortgage markets;

changes in management’s business strategies;

our ability to enter new markets successfully;

our ability to successfully integrate acquired businesses;

changes in consumer spending;

our ability to retain key employees;

the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk;

expanding regulatory requirements which could adversely affect operating results;

civil unrest in the communities that we serve;

and other factors discussed elsewhere in this report, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our annual Report on Form 10-K, in Part II, Item 1A of our quarterly reports on Form 10-Q, and our other periodic reports that we file with the SEC.

You should not place undue reliance on these forward-looking statements, which reflect our expectations only as of the date of this Form 10-Q. We do not assume any obligation to revise forward-looking statements except as may be required by law.

Overview

BCB Bancorp, Inc. is a New Jersey corporation, and is the holding company parent of BCB Community Bank, or the Bank. The Company has not engaged in any significant business activity other than owning all of the outstanding common stock of BCB Community Bank. Our executive office is located at 104-110 Avenue C, Bayonne, New Jersey 07002. At September 30, 2023, we had $3.812 billion in consolidated assets, $2.820 billion in deposits and $303.6 million in consolidated stockholders’ equity.

BCB Community Bank opened for business on November 1, 2000 as Bayonne Community Bank, a New Jersey chartered commercial bank. The Bank changed its name from Bayonne Community Bank to BCB Community Bank in April 2007. At September 30, 2023, the Bank operated through 24 branches in Bayonne, Edison, Jersey City, Hoboken, Fairfield, Holmdel, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, as well as four branches in Hicksville and Staten Island, NY, and through executive offices located at 104-110 Avenue C and an administrative office located at 591-595 Avenue C, Bayonne, New Jersey 07002. The Bank’s deposit accounts are insured by the FDIC, and the Bank is a member of the Federal Home Loan Bank System.

The rapid rise in interest rates during 2022 and in the first nine months of 2023, the resulting industry-wide reduction in the fair value of securities portfolios, and the bank runs that led to the failures of some financial institutions in March of 2023, among other events, have resulted in a current state of volatility and uncertainty with respect to the health of the U.S. banking system. There is heightened awareness around liquidity, uninsured deposits, deposit composition, unrecognized investment losses, and capital. See further discussion around some of these items in the remaining sections of the Management’s Discussion and Analysis of Financial Condition and Results of Operations.

28

We are a community-oriented financial institution. Our business is to offer FDIC-insured deposit products and to invest funds held in deposit accounts at the Bank, together with funds generated from operations, in loans and investment securities. We offer our customers:

loans, including commercial and multi-family real estate loans, one- to four-family mortgage loans, home equity loans, construction loans, consumer loans and commercial business loans. In recent years the primary growth in our loan portfolio has been in loans secured by commercial real estate and multi-family properties;

FDIC-insured deposit products, including savings and club accounts, interest and non-interest bearing demand accounts, money market accounts, certificates of deposit and individual retirement accounts; and

retail and commercial banking services including wire transfers, money orders, safe deposit boxes, a night depository, debit cards, online banking, mobile banking, gift cards, fraud detection (positive pay), and automated teller services.

Critical Accounting Estimates

Estimates and assumptions are necessary in the application of certain accounting policies and can be susceptible to significant change. Critical accounting estimates are defined as those that involve a significant level of estimation uncertainty and have had, or could have, a material impact on the Company’s financial conditions or results of operation. At September 30, 2023, the Company considers the allowance for credit losses to be its critical accounting estimate.

See further discussion of this critical accounting estimate in Note 7 of this Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2022.

Financial Condition

Total assets increased by $265.9 million, or 7.5 percent, to $3.812 billion at September 30, 2023, from $3.546 billion at December 31, 2022. The increase in total assets was mainly related to increases in total loans and in cash and cash equivalents.

Total cash and cash equivalents increased by $22.5 million, or 9.8 percent, to $251.9 million at September 30, 2023, from $229.4 million at December 31, 2022. The increase was primarily due to an increase in Federal Home Loan Bank (“FHLB”) borrowings and in deposits.

Loans receivable, net, increased by $240.4 million, or 7.9 percent, to $3.286 billion at September 30, 2023, from $3.045 billion at December 31, 2022. Total loan increases during 2023 included increases of $99.7 million in commercial real estate and multi-family loans, $88.5 million in commercial business loans, $40.3 million in construction loans, $1.7 million in residential one-to-four family loans and $9.6 million in home equity and consumer loans. The allowance for credit losses decreased $459,000 to $31.9 million, or 402.4 percent of non-accruing loans and 0.96 percent of gross loans, at September 30, 2023, as compared to an allowance for credit losses of $32.4 million, or 633.6 percent of non-accruing loans and 1.05 percent of gross loans, at December 31, 2022. Upon adoption of the CECL methodology, the Day One CECL adjustment resulted in a $4.2 million reduction to our ACL.

Total investment securities decreased by $15.0 million, or 13.7 percent, to $94.4 million at September 30, 2023, from $109.4 million at December 31, 2022, representing unrealized losses, calls and maturities, and repayments.

Deposit liabilities increased by $7.9 million, or 0.3 percent, to $2.820 billion at September 30, 2023, from $2.812 billion at December 31, 2022. Certificates of deposits and money market accounts increased $273.6 million and $43.2 million respectively, offset by interest bearing demand, non-interest bearing and savings and club accounts which declined $308.9 million during the first nine months of 2023.

Debt obligations increased by $240.5 million to $660.3 million at September 30, 2023 from $419.8 million at December 31, 2022. The weighted average interest rate of FHLB advances was 4.45 percent at September 30, 2023 and 4.07 percent at December 31, 2022. The weighted average maturity of FHLB advances as of September 30, 2023 was 1.71 years. The interest rate of our subordinated debt balances was 8.35 percent at September 30, 2023 and 5.62 percent at December 31, 2022 due to the fixed-rate period on such debt ending as of July 31, 2023.

Stockholders’ equity increased by $12.4 million, or 4.3 percent, to $303.6 million at September 30, 2023, from $291.3 million at December 31, 2022. The increase was primarily attributable to the increase in retained earnings of $17.6 million, or 15.3 percent, to $132.7 million at September 30, 2023 from $115.1 million at December 31, 2022 partially offset by the $3.1 million increase in accumulated other comprehensive loss during the first nine months of 2023 due to the effect rising interest rates had on our investment portfolio.

‎

29

Net Interest Income Analysis

Net interest income represents the difference between income earned on our interest-earning assets and the expense incurred on our interest-bearing liabilities, and is analyzed and monitored by the Company on a regular basis. The following tables set forth average balance sheets, yields, and costs. The yields include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or expense. No tax equivalent adjustments have been made as the effects would not be significant.

		Three Months Ended September 30,
		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%
Investment securities (6)		96,723		1,262	5.22%		112,172		1,276	4.55%
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%	$	774,871	$	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%		2,155,814		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.

(6)Includes Federal Home Loan Bank of New York Stock.

‎

30

		Nine Months Ended September 30,
		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%
Investment securities (6)		102,143		3,822	4.99%		109,422		3,369	4.11%
Interest earning assets		252,999		9,168	4.83%		314,024		1,812	0.77%
Total Interest-earning assets		3,626,160		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		2,916	0.68%
Total interest-bearing deposits		2,249,031		38,191	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		2,834,059		58,515	2.75%		2,146,362		8,821	0.55%
Non-interest-bearing liabilities		618,037					631,097
Total liabilities		3,452,096					2,777,459
Stockholders' equity		297,326					272,730
Total liabilities and stockholders' equity	$	3,749,422				$	3,050,189
Net interest income			$	80,141				$	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)Annualized.

(4)Excludes allowance for credit losses.

(5)Includes non-accrual loans which are immaterial to the yield.

(6)Includes Federal Home Loan Bank of New York Stock.

Results of Operations comparison for the Three Months Ended September 30, 2023 and 2022

Net income was $6.7 million for the third quarter ended September 30, 2023 and $13.4 million for the third quarter ended September 30, 2022. The decline was primarily driven by lower net interest income, higher credit loss provisioning and higher non-interest expenses for the third quarter of 2023 as compared with the third quarter of 2022.

Net interest income decreased by $5.3 million, or 17.0 percent, to $25.7 million for the third quarter of 2023, from $31.0 million for the third quarter of 2022. The decrease in net interest income resulted from higher interest expense which was partially offset by higher interest income.

Interest income increased by $14.7 million, or 42.6 percent, to $49.1 million for the third quarter of 2023 from $34.4 million for the third quarter of 2022. The average balance of interest-earning assets increased $732.9 million, or 24.7 percent, to $3.698 billion for the third quarter of 2023 from $2.965 billion for the third quarter of 2022, while the average yield increased 67 basis points to 5.31 percent for the third quarter of 2023 from 4.64 percent for the third quarter of 2022.

Interest expense increased by $19.9 million to $23.4 million for the third quarter of 2023 from $3.4 million for the third quarter of 2022. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 253 basis points to 3.17 percent for the third quarter of 2023 from 0.64 percent for the third quarter of 2022, while the average balance of interest-bearing liabilities increased by $791.0 million to $2.947 billion for the third quarter of 2023 from $2.156 billion for the third quarter of 2022. The increase in the average cost of funds resulted primarily from the persistently high interest rate environment.

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 $496,000 in net charge-offs compared to $918,000 in net charge offs in the third quarter of 2022. The Bank had non-accrual loans totaling $7.93 million, or 0.24 percent of gross loans, at September 30, 2023 as compared to $8.51 million, or 0.30 percent of gross loans, at September 30, 2022. The allowance for credit losses on loans was $31.9 million, or 0.96 percent of gross loans at September 30, 2023, and $33.2 million, or 1.18 percent of gross loans at September 30, 2022. The provision for credit losses was $2.21 million for the third quarter of 2023 compared to no provisioning for credit losses for the third quarter of 2022. Management believes that the allowance for credit losses on loans was adequate at September 30, 2023 and September 30, 2022.

Non-interest income decreased by $40,000 to $1.41 million for the third quarter of 2023 from $1.45 million for third quarter of 2022. The decrease in total non-interest income was mainly related to the $180,000 decrease in BOLI income. This was offset by fees and service charges increasing by $98,000.

Non-interest expense increased by $2.0 million, or 14.9 percent, to $15.5 million for the third quarter of 2023 from $13.5 million for the third quarter of 2022. The increase in operating expenses for the third quarter of 2023 was primarily driven by higher regulatory assessment charges, higher salaries and employee benefits, and increased data processing expenses compared to the third quarter of 2022. The number of full-time equivalent employees for the third quarter of 2023 was 296, as compared to 301 for the same period in 2022.

The income tax provision decreased by $2.8 million, or 51.2 percent, to $2.7 million for the third quarter of 2023 from $5.6 million for the third quarter of 2022. The consolidated effective tax rate was 28.7 percent for the third quarter of 2023 compared to 29.3 percent for the third quarter of 2022.

Results of Operations comparison for the Nine Months Ended September 30, 2023 and 2022

31

Net income decreased by $10.1 million, or 30.1 percent, to $23.4 million for the first nine months of 2023 from $33.5 million for the first nine months of 2022. The decrease in net income was driven primarily by a higher provision for credit losses on loans and an increase in operating expenses for 2023 as compared to 2022.

Net interest income decreased by $3.6 million, or 4.3 percent, to $80.1 million for the first nine months of 2023 from $83.8 million for the first nine months of 2022. The decrease in net interest income resulted from a $49.7 million increase in interest expense, offset by an increase of $46.1 million in interest income.

The $46.1 million increase in interest income to $138.7 million for the first nine months of 2023, was a 49.8 percent increase from $92.6 million for the first nine months of 2022. The average balance of interest-earning assets increased $681.3 million, or 23.1 percent, to $3.626 billion for the first nine months of 2023, from $2.945 billion for the first nine months of 2022, while the average yield increased 91 basis points to 5.10 percent from 4.19 percent for the same comparable period. The increase in the average balance of interest-earning assets mainly related to an increase in the level of average loans receivable for the first nine months of 2023, as compared to the same period in 2022.

The increase in interest income mainly related to an increase in the average balance of loans receivable of $749.6 million to $3.271 billion for the first nine months of 2023, from $2.521 billion for the first nine months of 2022.

The $49.7 million increase in interest expense to $58.5 million for the first nine months of 2023, was a 563.4 percent increase from $8.8 million for the 2022 comparable period. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 220 basis points to 2.75 percent for the first nine months of 2023, from 0.55 percent for the first nine months of 2022, and an increase in the average balance of interest-bearing liabilities of $687.7 million, or 32.0 percent, to $2.834 billion from $2.146 billion over the same comparable periods. The increase in the average cost of funds primarily resulted from the high interest rate environment and an increase in the level of borrowed funds in the first nine months of 2023 compared to the same period in 2022.

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 $471,000 in net charge offs compared to $1.3 million in net charge offs for the same period in 2022.The Bank had non-accrual loans totaling $7.93 million, or 0.24 percent, of gross loans at September 30, 2023 as compared to $8.51 million, or 0.30 percent of gross loans at September 30, 2022. The allowance for credit losses was $31.9 million, or 0.96 percent of gross loans at September 30, 2023, and $33.2 million, or 1.18 percent of gross loans at September 30, 2022. The provision for credit losses was $4.2 million for the first nine months of 2023 compared to a credit to the provision for loan losses of $2.6 million for the same period in 2022. Management believes that the allowance for credit losses was adequate at September 30, 2023 and September 30, 2022.

Non-interest income increased by $327,000 to $860,000 for the first nine months of 2023 from $533,000 for the first nine months of 2022. The improvement in total noninterest income was mainly related to a decrease of $1.2 million in the realized and unrealized losses on equity securities, partially offset by a decrease of $933,000 in BOLI income. The realized and unrealized losses on equity securities are based on market conditions.

Non-interest expense increased by $4.6 million, or 11.5 percent, to $44.0 million for the first nine months of 2023 from $39.5 million for the same period in 2022. The increase in operating expenses for 2023 was driven primarily by an increase in salaries and employee benefits, an increase in regulatory assessments, and higher data processing expenses. The number of full-time equivalent employees for the period ended September 30, 2023 was 300, as compared with 302 for the same period in 2022.

The income tax provision decreased by $4.5 million or 32.5 percent, to $9.4 million for the first nine months of 2023 from $13.9 million for the same period in 2022. The decrease in the income tax provision was a result of the lower taxable income for the nine months ended September 30, 2023 compared to the same period in 2022. The consolidated effective tax rate was 28.6 percent for the first nine months of 2023 compared to 29.3 percent for the first nine months of 2022.

Liquidity and Capital Resources

Liquidity

The overall objective of our liquidity management practices is to ensure the availability of sufficient funds to meet financial commitments and to take advantage of lending and investment opportunities. The Company manages liquidity in order to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings and other obligations as they mature, and to fund loan and investment portfolio opportunities as they arise.

The Company’s primary sources of funds to satisfy its objectives are net growth in deposits (primarily retail), principal and interest payments on loans and investment securities, proceeds from the sale of originated loans and FHLB and other borrowings. The scheduled amortization of loans is a predictable source of funds. Deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition. The Company has other sources of liquidity if a need for additional funds arises, including unsecured overnight lines of credit and other collateralized borrowings from the FHLB and certain correspondent banks. The Federal Reserve Board also has announced a Bank Term Funding Program available to eligible depository institutions secured by U.S. treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral at par, to mitigate the risk of potential losses on the sale of such instruments.

At September 30, 2023 and December 31, 2022, the Company had $0 and $60.0 million, respectively, in overnight borrowings outstanding with the FHLB. The Company utilizes overnight borrowings from time to time to fund short-term liquidity needs. The Company had total FHLB borrowings of $622.7 million at September 30, 2023 and $382.3 million at December 31, 2022. The average rate of FHLB advances was 4.45 percent at September 30, 2023 and 4.07 percent at December 31, 2022.

The Company had the ability at September 30, 2023 to obtain additional funding from the FHLB of up to $321.4 million, utilizing unencumbered loan collateral. The Company expects to have sufficient funds available to meet current loan commitments in the normal course of business through typical sources of liquidity. Time deposits scheduled to mature in one year or less totaled $1.050 billion at September 30, 2023. Based upon historical experience, management estimates that a significant portion of such deposits will remain with the Company.

The Company was well positioned with adequate levels of cash and liquid assets as of September 30, 2023, as well as wholesale borrowing capacity of over $1.906 billion.

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32

Subordinated Debentures

The Company has subordinated debentures outstanding, whose aggregate principal totaled $33.5 million at September 30, 2023. The subordinated debentures have a ten-year term and bore an interest at a fixed annual rate of 5.625% for the first five years of the term. Beginning August 1, 2023, the interest rate adjusted to a floating rate based on the CME Term Secured Overnight Financing Rate (“SOFR”) published by the Federal Reserve Bank of New York, as adjusted by the spread adjustment of 0.26161 percent, plus 2.72% until redemption or maturity. The Notes are scheduled to mature on August 1, 2028.

The Company also has $4.1 million of mandatory redeemable Trust Preferred securities. Effective September 18, 2023, the interest rate on these floating rate junior subordinated debentures adjusts quarterly based on the three-month CME Term SOFR, as adjusted by the spread adjustment of 0.26161 percent, plus 2.650%. Prior to September 18, 2023 the rate was based on the three-month LIBOR. The rate paid as of September 30, 2023 and 2022 was 8.320% and 6.177%, respectively. The trust preferred debenture became callable, at the Company’s option, on June 17, 2009, and quarterly thereafter.

In accordance with the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) and the regulation issued by the Board of Governors of the Federal Reserve System implementing the LIBOR Act, the Company selected the three-month CME Term SOFR as the applicable successor rate to LIBOR for both the subordinated debentures and the trust preferred securities. The calculation of the amount of interest payable, based on the three-month CME Term SOFR, also includes the applicable tenor spread adjustment of 0.26161% per annum as specified in the LIBOR Act. The Company does not anticipate there will be a significant financial statement impact from this change.

Capital Resources

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors.

We have opted in to the community bank leverage ratio (tier 1 capital to average consolidated assets) (“CBLR”) framework, with a minimum requirement of 9% for institutions under $10 billion in assets. Such institutions meeting that requirement may elect to utilize the CBLR in lieu of the general applicable risk-based capital requirements under Basel III. Such institutions that meet the CBLR and certain other qualifying criteria will automatically be deemed to be well-capitalized.

At September 30, 2023 and December 31, 2022, the Bank exceeded all of its regulatory capital requirements t. At September 30, 2023, although the Bank is below the required 9.00%, it is within the two-quarter grace period to be below 9.00% and still be considered well capitalized. The following table sets forth the regulatory capital ratios for the Bank as well as regulatory capital requirements for the periods presented. The following table sets forth the regulatory capital ratios for the Bank as well as the regulatory capital requirements for the periods presented.

		Actual				For Capital Adequacy Purposes				For Well Capitalized Under Prompt Corrective Action
	Dollars in Thousands
As of September 30, 2023:
Bank
Community Bank Leverage Ratio	$	343,086	8.96	%	$	306,344	8.00	%	$	344,637	9.00	%
As of December 31, 2022:
Bank
Community Bank Leverage Ratio	$	327,806	9.86	%	$	265,557	8.00	%	$	298,752	9.00	%

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33

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

Management of Market Risk

Market risk is a broad term for the risk of economic loss due to adverse changes in the fair value of a financial instrument. These changes may be the result of various factors, including interest rates, foreign exchange prices, commodity prices, or equity prices. Financial instruments that are subject to market risk can be classified either as held for trading or held for purposes other than trading.

Qualitative Analysis. The majority of our assets and liabilities are monetary in nature. Consequently, one of our most significant forms of market risk is interest rate risk. Our assets, consisting primarily of mortgage loans, have longer maturities than our liabilities, consisting primarily of deposits. As a result, a principal part of our business strategy is to manage interest rate risk and reduce the exposure of our net interest income to changes in market interest rates. Accordingly, our Board of Directors has established an Asset/Liability Committee which is responsible for evaluating the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the Board of Directors. Senior management monitors the level of interest rate risk on a regular basis and the Asset/Liability Committee, which consists of senior management and outside directors operating under a policy adopted by the Board of Directors, meets as needed to review our asset/liability policies and interest rate risk position.

Quantitative Analysis. The following table presents the Company’s net portfolio value (“NPV”). These calculations were based upon assumptions believed to be fundamentally sound, although they may vary from assumptions utilized by other financial institutions. The information set forth below is based on data that included all financial instruments as of September 30, 2023. Assumptions have been made by the Company relating to interest rates, loan prepayment rates, core deposit duration, and the market values of certain assets and liabilities under the various interest rate scenarios. Actual maturity dates were used for fixed rate loans and certificate accounts. Investment securities were scheduled at either the maturity date or the next scheduled call date based upon management’s judgment of whether the particular security would be called in the current interest rate environment and under assumed interest rate scenarios. Variable rate loans were scheduled as of their next scheduled interest rate repricing date. The NPV at “PAR” represents the difference between the Company’s estimated value of assets and estimated value of liabilities assuming no change in interest rates. The NPV for a decrease of 200 to 300 basis points has been excluded since it would not be meaningful in the interest rate environment as of September 30, 2023. The following sets forth the Company’s NPV as of September 30, 2023.

							NPV as a % of Assets
Change in Calculation	Net Portfolio Value		$ Change from PAR		% Change from PAR		NPV Ratio		Change
+200bp	$	269,042	$	(79,402)	(22.79)	%	7.77	%	(1.87)	%
+100bp		309,841		(38,604)	(11.08)		8.76		(0.88)
PAR		348,444		-	-		9.64		-
-100bp		385,323		36,879	10.58		10.43		0.79

____________

bps-basis point

The table above indicates that at September 30, 2023, in the event of a 100-basis point increase in interest rates, we would experience a 11.08 basis point decrease in NPV, as compared to a 1.92 percent decrease at December 31, 2022.

Certain shortcomings are inherent in the methodology used in the above interest rate risk measurement. Modeling changes in NPV require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the NPV table presented assumes that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the NPV table provides an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net interest income, and will differ from actual results.

ITEM 4. Controls and Procedures

Under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, the Company has evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this quarterly report, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Due to implementation of CECL issued by the FASB, the Bank has made updates to its internal control over financial reporting. Controls around the allowance for credit losses were replaced with CECL controls, including processes and control owners. With the exception of these changes, there was no change to our internal controls over financial reporting during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are involved, from time to time, as plaintiff or defendant in various legal actions arising in the normal course of business. As of September 30, 2023, we were not involved in any material legal proceedings the outcome of which, if determined in a manner adverse to the Company, would have a material adverse effect on our financial condition or results of operations.

ITEM 1.A. RISK FACTORS

There have been no material changes to the risk factors set forth under the Part I, Item 1.A. Risk Factors as set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as amended by the risk factors set forth under the Part II, Item 1.A. Risk Factor set forth in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFTEY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Exhibit 10.1	Amendment to Employment Agreement dated August 4, 2023 among the Company, the Bank and Thomas M. Coughlin
Exhibit 10.2	Consulting Agreement dated August 4, 2023 among the Company, the Bank and Thomas M. Coughlin
Exhibit 31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2	Certification of Principal Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32	Officers’ Certification filed pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101.INS	XBRL Instance Document
Exhibit 101.SCH	XBRL Taxonomy Extension Schema
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation LinkBase
Exhibit 101.DEF	XBRL Taxonomy Extension Definition LinkBase
Exhibit 101.LAB	XBRL Taxonomy Extension Label LinkBase
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation LinkBase
Exhibit 104	Cover page Interactive Data File (embedded within the Inline XBRL document)

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36

Signatures

Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

	BCB BANCORP, INC.
Date: November 2, 2023	By:	/s/ Thomas Coughlin
		Thomas Coughlin
		President and Chief Executive Officer (Principal Executive Officer)
Date: November 2, 2023	By:	/s/ Jawad Chaudhry
		Jawad Chaudhry Chief Financial Officer
		(Principal Accounting and Financial Officer)

37

EX-10.1

AMENDMENT TO EMPLOYMENT AGREEMENT

THIS AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made on and as of the 4th day of August, 2023, by and between BCB Bancorp, Inc. (“BCB”), a corporation organized under the laws of the state of New Jersey, with its principal office at 591-595 Avenue C, Bayonne, New Jersey 07002;  BCB Community Bank (“Bank” or “Employer”), a bank organized under the laws of the state of New Jersey and wholly owned subsidiary of BCB, with its principal office at 591-595 Avenue C, Bayonne, New Jersey 07002; and Thomas M. Coughlin (“Executive” and, together with BCB and the Bank, the “Parties”), whose address is 190 West 52nd Street, Bayonne, NJ 07002.

WHEREAS,  BCB,  the Bank and Executive are parties to an Employment Agreement (the “Existing Employment Agreement”) dated as of September 1, 2022;  

WHEREAS,  Executive currently is employed as President and Chief Executive Officer of each of BCB and the Bank;  

WHEREAS, the employment of Executive with each of BCB and the Bank will cease effective as of December 31, 2023;  

WHEREAS, Executive, BCB and the Bank desire to amend the Employment Agreement; and

WHEREAS, in connection with and as due consideration for Executive,  BCB and the Bank entering into this Amendment, the parties concurrently are entering into a  Consulting Agreement(“Consulting Agreement”) dated the date hereof.

NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements contained herein, and intending to be legally bound hereby, BCB, the Bank and Executive agree that the Employment Agreement shall be amended as follows:

1. Incorporation of Background; Defined Terms. The Background provisions set forth above (including all defined terms set forth therein) are hereby incorporated by reference into this Amendment and made a part hereof as if set forth in their entirety in this Section 1. All terms used but not defined herein shall have the meanings assigned thereto in the Existing Employment Agreement.

2. Termination of Employment. The Parties agree that December 31, 2023 shall be the last day of Executive’s employment with BCB and the Bank and that Executive’s employment as the President and Chief Executive Officer of each of BCB and the Bank shall terminate as of the close of business on December 31, 2023 (the “Effective Time”).  At the Effective Time,  unless otherwise agreed by the parties, Executive shall resign from all positions as an officer, director and trustee with respect to BCB and the Bank or any of their subsidiaries, including as a trustee of the BCB Community Bank 401(k) Plan if applicable. It is acknowledged that the Effective Time shall constitute Executive’s “separation from service” within the meaning of Section 409A

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of the Internal Revenue Code of 1986, as amended (the “Code”) with respect to BCB, the Bank and all affiliates.

3. Amendment to Supplemental Executive Retirement Plan.  

(a) Provided that Executive signs a general release of claims substantially in the form attached hereto as Exhibit A (the “Release”), which becomes effective in accordance with its terms, and partially in exchange for Executive’s obligations, including his non-competitionand non-solicitation restrictions, under the Consulting Agreement,  the Bankagrees to amend the BCB Community Bank Supplemental Executive Retirement Plan as adopted dated December 29, 2021 and as amended (the "SERP"), to increase the Normal Retirement Benefit under the SERP by an amount that an additional premium payment ofOne Million One Hundred Seventy Thousand Dollars  ($1,170,000.00),less any applicable withholdings, paid to purchase an annuity contract solely owned by the Bank, shall provide,in accordance with prior practice under the SERP.   The parties shall amend the SERP on or before January 15, 2024.

(b) Executive acknowledges that, except as specifically and expressly set forth in this Amendment, at and after the Effective Time, BCB and the Bank will not have any obligation to provide Executive at any time in the future any payments, benefits or considerations with respect to the Existing Employment Agreement.

4. Termination and Modification of Agreements. As of the Effective Time, except as otherwise expressly provided in this Amendment, the Existing Employment Agreement shall be terminated and of no further force or effect, and BCB and the Bank shall have no continuing obligation to make any payment or to provide any benefit to Executive under the Existing Employment Agreement.

5. Indemnification. Notwithstanding the foregoing, nothing contained herein shall be deemed a waiver by Executive of any rights Executive may have to indemnification and other benefits under the bylaws of BCB and the Bank.

6. Effect on Existing Agreement. Subject to Section 4 of this Amendment, between the date hereof and the Effective Time, this Amendment shall be deemed to amend and/or supplement the rights and obligations of the parties under the Existing Employment Agreement to the extent contemplated herein. This Amendment becomes irrevocable upon the Effective Time in compliance with the requirements of Treasury Regulation Section 1.409A-3(j)(ix)(B). In the event of any conflict between the terms of this Amendment and the terms of the Existing Employment Agreement, this Amendment shall control.

7. Tax Issues. The Executive acknowledges that BCB and the Bank have not provided advice regarding the taxation or tax reporting of payments made pursuant to this Amendment; provided, however, it is the intent of the parties that payments under this Amendment either be exempt from or comply with Section 409A of the Code and the regulations and guidance promulgated thereunder and, accordingly, to the maximum extent permitted, this Amendment shall be interpreted to be in compliance therewith.

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9. Applicable Law. This Amendment is made pursuant to, and shall be construed and enforced in accordance with, the laws of the State of New Jersey (and United States federal law, to the extent applicable), irrespective of the principal place of business, residence or domicile of the parties hereto, and without giving effect to otherwise applicable principles of conflict of laws.

10. Construction. Each party to this Amendment had full opportunity to negotiate all terms and language of this Amendment, and this Amendment and all of its terms shall be construed as if drawn by both parties and not against either as the drafter.

11. Entire Agreement. Except as otherwise provided herein, this Amendment sets forth the entire agreement between the parties and fully supersedes any and all written or oral contracts, agreements or understandings between the parties pertaining to the subject matter hereof, including the Existing Employment Agreement.

12. Severability. If any of the provisions of, or covenants contained in, this Amendment are hereafter construed to be invalid or unenforceable in any jurisdiction, the same shall not affect the validity or enforceability of the remaining provisions and covenants in such jurisdiction or any provision or covenant of this Amendment in any other jurisdiction. If any of the provisions of or covenants contained in this Amendment are held to be unenforceable in any jurisdiction because of the duration and/or scope (whether geographic or otherwise) thereof, such provision shall be deemed to be reduced to the maximum duration and/or scope permitted in such jurisdiction; provided, however, that such reduction shall not affect the enforceability of this Amendment in any other jurisdiction.

13. Amendment; Waiver. This Amendment shall not be amended or modified except by written instrument executed by or on behalf of Executive, BCB and the Bank. No failure or delay on the part of any Party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or covenant herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Amendment are cumulative to, and not exclusive of, any rights or remedies otherwise available.

14. Required Regulatory Provisions. Notwithstanding anything herein contained to the contrary, any payments to the Executive by the Bank, whether pursuant to this Amendment or otherwise, are subject to and conditioned upon its compliance with section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k), and any regulations promulgated thereunder.

15. Successors and Assigns. The provisions of this Amendment shall be binding upon and inure to the benefits of the parties hereto and the respective successors and assigns of BCB and the Bank and the executors, personal representatives, surviving spouse, heirs, devisees and legatees of the Executive. Executive may not assign, delegate or otherwise transfer any of his rights or obligations under this Amendment.

16. Revocation Rights.  Each party will have thirty  (30) calendar days following the date hereof within which to revoke this Amendment.  If either party chooses to revoke this amendment, the revocation must be in writing and delivered by email to the other party (in the

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case of Executive’s notice it must be sent to Mark Hogan andRyan Blake at BCB Bancorp, Inc. to be valid) by no later than thirty  (30) calendar days after the date hereof.  In the event of such revocation, this Agreement, the Consulting Agreement and any SERP amendment executed pursuant to Section 3 shall be null and void in its entirety. 

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first set forth above.

BCB BANCOPRP, INC.

By: /s/ Mark D. Hogan

Name: Mark D. Hogan, Chairman

BCB COMMUNITY BANK

By: /s/ Mark D. Hogan

Name: Mark D. Hogan, Chairman

/s/ Thomas M. Coughlin
          THOMAS M. COUGHLIN

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EXHIBIT A

GENERAL RELEASE

This General Release of Claims (this “Release”) is provided by Thomas M. Coughlin(“Executive”) to BCB Bancorp, Inc. (“BCB”), a corporation organized under the laws of the state of New Jersey which serves as a bank holding company, with its principal office at 591-595 Avenue C, Bayonne, New Jersey 07002; BCB Community Bank (“Bank” or “Employer”), a bank organized under the laws of the state of New Jersey which is a wholly owned subsidiary of BCB, with its principal office at 591-595 Avenue C, Bayonne, New Jersey 07002, and the Released Parties as designated below, dated as of ____________, 2023.  This Release is provided by Executive pursuant to an Employment Agreement made on and as of September 1, 2022 among Executive, BCB and Bank (as amended, the “Employment Agreement”).  BCB and Bank are sometimes collectively referred to as the “Company”.  Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Employment Agreement.

1.Release of Claims.

(a)In exchange for Employer agreeing to make the Payments referred to in Section 2 below, less applicable withholding, Executive releases Employer and BCB, and their present, past and future officers, directors, agents, employees, shareholders, members, affiliates, parents, subsidiaries, divisions, related companies, successors, predecessors, assigns, members, investors, trustees,  partners, agents, attorneys, and representatives (which collectively are referred to in this Agreement as “Released Parties”), from, and Executive waives, all suits, debts and claims that existed up to the time that Executive signs this Release, including but not limited to, everything arising from or in any way related to Executive’s employment with the Company and/or the termination of Employee’s employment with the Company (referred to in this Release as “Claims”).  This Release and Executive’s release and waiver of Claims includes, but is not limited to, the following:

(1)All Claims against the Company and all companies and institutions related to or affiliated with the Company and the other Released Parties, and their successors, predecessors, officers, directors, agents, shareholders, members and employees,

(2)All Claims asserted and all Claims that could have been asserted in a lawsuit by Executive against the Company and all companies and institutions related to or affiliated with the Company and the other Released Parties, and their successors, predecessors, officers, directors, agents, shareholders, members and employees,

(3)All Claims of which Executive is now aware and all Claims of which Executive is not presently aware,

(4)All Claims that, through Executive, Executive’s heirs, executors or administrators have,

(5)All Claims arising under or relating to any policy, agreement, plan, understanding or promise, written or oral, formal or informal, between the Company or any of the other Releasees and Executive, including, but not limited to, the Employment Agreement

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(6)All Claims for attorney’s fees, and

(7)All Claims arising under common law or any local, state or federal law including, but not limited to, the Civil Rights Act of 1964, the Americans With Disabilities Act, the Equal Pay Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act, the Family and Medical Leave Act, the Genetic Information Nondiscrimination Act, the New Jersey Law Against Discrimination, the New Jersey Conscientious Employee Protection Act, the New Jersey Family Leave Act, New Jersey Wage Payment Law, New Jersey Wage and Hour Law, all local, municipal, state and federal wage and hour laws, all local, municipal, state and federal “whistleblower” laws, all other laws affecting employment, and all amendments of those laws.

(b)Notwithstanding the foregoing, the Company and Executive recognize that nothing contained in this Section 1 shall in any way release or discharge:  (i) Executive’s right to bring any Claim that cannot be waived under applicable law; (ii) Executive’s right to receive payment in accordance with the terms of the Employment Agreement; (iii) Executive’s right to enforce, or bring any Claim for breach of, the Employment Agreement; (iv) Executive’s right to receive Executive’s equity in the Company pursuant to the terms of the any equity award agreement, as applicable; (v) Executive’s right to any vested benefits to which Executive may be entitled under any retirement or pension plan of the Company or its subsidiaries, as applicable; or (vi) Executive’s right to bring any Claim for indemnification under any applicable directors and officers liability insurance policy or applicable state or federal law, as applicable (the “Excluded Claims”).

2.Attorney Consultation; Voluntary Agreement.  Executive acknowledges that (i) the Company has advised Executive to consult with an attorney of Executive’s own choosing before signing this Release, (ii) Executive has been given the opportunity to seek the advice of counsel, (iii) Executive has carefully read and fully understands all of the provisions of this Release, (iv) the Release specifically applies to any rights or claims Executive may have against the Releasees under the Age Discrimination In Employment Act,(v) Executive is entering into this Release knowingly, freely and voluntarily in exchange for good and valuable consideration to which Executive is not otherwise entitled, including the provision of certain payment, and if applicable, benefits, set forth in Employment Agreement (the “Payments”), and (vi) Executive has the full power, capacity and authority to enter into this Release.

3.Period of Review and Revocation Rights.

(a)Executive understands and agrees that Executive has 21 days following Executive’s receipt of this Release to review this Release and its terms and to reflect upon them and consider whether Executive wants to sign it.  Executive understands and agrees that Executive may accept this Release by signing and returning it within the applicable time frame to Ryan Blake, BCB Bancorp, Inc. at 591-595 Avenue C, Bayonne, New Jersey 07002.

(b)Executive further acknowledges that Executive will have seven (7) calendar days following Executive’s execution of this Release within which to revoke this Release.  If Executive chooses to revoke his consent to this Release, the revocation must be in writing and delivered to Ryan Blake, BCB Bancorp, Inc., at the address above no later than seven (7) calendar

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days after Executive has signed this Release.  In the event of such revocation by Executive, this Release shall be null and void in its entirety and Executive will not receive the Payments.  Provided that Executive does not revoke this Release, this Release shall become effective on the eighth (8th) calendar day following the date of Executive’s execution of this Release.

IN WITNESS WHEREOF, Executive has executed this Release on the date set forth below.

EXECUTIVE

Date Executed:  ___________, 2023

(Signature)

Thomas M. Coughlin

(Printed Name)

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EX-10.2

CONSULTING AGREEMENT

CONSULTING AGREEMENT (this “Agreement”) dated as of August3, 2023, and effective as of January 1, 2024 (the “Effective Time”), is entered into by and between BCB Bancorp, Inc., a corporation organized under the laws of the state of New Jersey, with its principal office at 591‑595AvenueC, Bayonne, New Jersey 07002(the “Company”), BCB Community Bank,  a bank organized under the laws of the state of New Jersey and wholly owned subsidiary of Company, with its principal office at 591‑595AvenueC, Bayonne, New Jersey 07002(the “Bank”) and Thomas M. Coughlin  (“Mr.Coughlin” and together with the Company and the Bank, the “Parties”).

WHEREAS,  the Company,  the Bank and Mr.Coughlin are parties to an Employment Agreement dated as of September1, 2022;  

WHEREAS,  Mr.Coughlin currently is employed as President and Chief Executive Officer of each of theCompany and the Bank;  

WHEREAS, the employment of Mr.Coughlin with each of Company and Bank will cease effective as of December 31, 2023; 

WHEREAS, the Parties contemplate that Mr.Coughlin will serve in a consultant capacity to the Bank for the twenty-four (24) month period beginning on January 1, 2024; and

WHEREAS, in connection with and as due consideration for Mr. Coughlin, BCB and the Bank entering into this Agreement, the parties concurrently are entering into an Amendment to Mr. Coughlin’s current Employment Agreement with BCB and the Bank (the “Employment Agreement Amendment”)dated the date hereof.

NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency whereof is hereby acknowledged, the Parties hereto agree as follows:

1.  Consulting Services.

(a)  Services.For the period beginning at the Effective Time, and expiring on December 31, 2025 (the “Consulting Period”), Mr.Coughlin shall provide the following services to the Company and the Bank (the “Services”):  (1)assistingwith the retention of  customers and keyemployees; (2)introducingprospective customers to appropriateBankemployees; (3)otherwiseinitiatingreferrals forBank business development officers and relationship managers; (4)assistingwith customer relationship management;  (5) advising senior management on general banking and management matters upon their request;  and (6)undertaking suchotherduties andresponsibilities as maybereasonablyrelated to the foregoing.Notwithstanding the foregoing, Mr.Coughlin shall not be required to provide the Services for more than (8) hours per week during any part of the Consulting Period.  It is the intent of the Parties that the Services shall not exceed twenty percent (20%) of the average level of services that Mr. Coughlin performed during the three (3) year period prior to the Effective Time.

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(b)  Status as Independent Contractor.In all matters relating to the Services, Mr.Coughlin shall be acting as an independent contractor.Neither Mr.Coughlin, nor any affiliated employees or subcontractors, shall be the agent(s) or employee(s) of the Company or the Bank under the meaning or application of any federal or state laws, including but not limited to unemployment insurance or worker’s compensation laws.Mr.Coughlin shall not sign any agreement or make any commitments on behalf of the Company or the Bank or bind the Company or the Bank in any way, nor shall Mr.Coughlin make any public statements concerning the Services that purport to be on behalf of the Company or the Bank, in each case without prior express written consent from the Company or the Bank.  Mr.Coughlin shall perform the Services on a basis subject to the covenants set forth in Section 5 and shall not accept other engagements during the term of this Agreement.  The Parties hereby acknowledge and agree that neither the Company nor the Bank has the right to control the manner, means, or method by which Mr.Coughlin performs the Services.

2.  Health and Life Insurance Coverage.   The Bank shall cover the full cost of Company health care coverage and any applicable Company provided life insurancefor Mr. Coughlin for the entire consulting period.  Mr. Coughlin shall be responsible for all applicable taxes incurred by him in connection with such payments and the provision of such coverage provided hereunder shall be secondary to any coverage provided to Mr. Coughlin by an employer and to any Medicare coverage for which Mr. Coughlin becomes eligible.

3.  Cooperation.During the Consulting Period,  Mr.Coughlin agrees to make himself reasonably available (after taking into account his reasonable personal schedule) to cooperate with the Company and the Bankin matters that concern:  (i) requests for information about the Services Mr.Coughlin provided to the Company and the Bank, its affiliates and their predecessors, (ii) the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company and the Bank, its affiliates and their predecessors which relate to events or occurrences involving the Services or to matters involving the Company or the Bank, or (iii) any investigation or review by any federal, state or local regulatory, quasi-regulatory or self-governing authority as any such investigation or review relates to events or occurrences that transpired while Mr.Coughlin was providing the Services to the Company, or to matters involving the Company or the Bank.Mr.Coughlin’s cooperation shall include, but is not limited to:  (A) making himself reasonably available to meet and speak with officers or employees of the Company or the Bank, the Company or Bank’s counsel or any third-parties at the request of the Company or the Bank at times and locations to be determined by the Company or the Bank reasonably and in good faith,  and  (B) giving accurate and truthful information at any interviews and accurate and truthful testimony in any legal proceedings or actions.Unless required by law or legal process, Mr.Coughlin will not knowingly or intentionally furnish information to or cooperate with any non‑governmental entity in connection with any potential or pending proceeding or legal action involving matters arising during Mr.Coughlin’s  service with the Company or the Bank, its affiliates and their predecessors.

4.  Section 409A; Other Tax Matters.The Parties intend for the payments and benefits under this Agreement to be exempt from Section409A or, if not so exempt, to be paid or provided in a manner which complies with the requirements of such section and intend that this Agreement shall be construed and administered in accordance with such intention.Any payments that qualify for the “short-term deferral” exception or another exception under Section409A shall be paid

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under the applicable exception.For purposes of the limitations on nonqualified deferred compensation under Section409A, each payment of compensation under this Agreement shall be treated as a separate payment of compensation.  To the extent required in order to avoid accelerated taxation and/or tax penalties under Section409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six (6) month period immediately following Mr.Coughlin’s separation from service shall instead be paid on the first business day after the date that is six (6) months following his termination of service (or upon his death, if earlier). Notwithstanding any other provision of this Agreement, the Company or the Bank may withhold from amounts payable under this Agreement all amounts that are required or authorized to be withheld, including, but not limited to, federal, state, local and foreign taxes required to be withheld by applicable laws or regulations.

5.  Covenants.

(a)  Non‑Solicitation.  Mr. Coughlin hereby covenants and agrees that, if the consultant’sservice with the Company orBank is terminated under Sections 6(b) – (d) of this Agreement, for a period of one (1) year following termination of service with the Company or theBank (other than a termination of service following a Change in Control), Mr. Coughlin shall not, without the written consent of the Company or theBank, either directly or indirectly:

(i)  Solicit, offer service to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of the Company or Bank, or any of its respective subsidiaries or affiliates, to terminate his service and accept service or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business whatsoever which competes with the business of the Company or theBank, or any of its direct or indirect subsidiaries or affiliates.

(ii)  Solicit, provide any information, advice or recommendation, or take any other action intended (or that reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Company or theBank to terminate an existing business or commercial relationship with the Company or theBank.

(b)  During the term of this Agreement and for twelve (12) months following termination of Mr. Coughlin’s Service (the “Restricted Period”), Mr. Coughlin will not, without the prior written consent of Company or the Bank, directly or indirectly, and whether as principal or investor or as an employee, officer, director, manager, partner, consultant, agent, or otherwise, alone or in association with any other person, firm, corporation, or other business organization, engage or otherwise become involved in a Competing Business (as defined below) within a 25 mile radius of any of Company or Bank’s office locations existing at the time of termination of Mr. Coughlin’s service; provided, however, that the provisions of this Section 5(b) shall apply solely to those activities of a Competing Business which are congruent with those activities with which Mr. Coughlin was personally involved or for which Mr. Coughlin was responsible while employed by or consulting for the Company or its subsidiaries during the twelve (12) month period preceding termination of Mr. Coughlin’s service.  This Section 5(b) will not be violated, however, by Mr. Coughlin’s investment of up to $100,000 in the aggregate in one or more publicly traded companies that engage in a Competing Business.  “Competing Business” means a business or

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enterprise (other than Company or its subsidiaries) engaged in banking (commercial or consumer), lending or deposit taking.

(c)  Confidentiality.  Mr. Coughlin recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other proprietary information of theCompany and the Bank, as it may exist from time to time, are valuable, special and unique assets of the business of the Company and theBank.  Mr. Coughlin will not, during or after the term of his service, disclose any knowledge of the past, present, planned or considered business activities or any other similar proprietary information of the Company or the Bank to any person, firm, corporation, or other entity for any reason or purpose whatsoever unless expressly authorized by theBoard or required by law.  Notwithstanding the foregoing, Mr. Coughlin may disclose any knowledge of banking, financial and/or economic principles, concepts or ideas which are not solely and exclusively derived from the business plans and activities of the Company or theBank.  Further,  Mr. Coughlin may disclose information regarding the business activities of the Bank to any bank regulator having regulatory jurisdiction over the activities of the Bank pursuant to a formal regulatory request. Mr. Coughlin agrees that in the event that Mr. Coughlin is contacted by any person or entity seeking information or testimony from Mr. Coughlin in connection with Mr. Coughlin’s or others' employment, duties or activities at the Bank, the Company, and their affiliates and subsidiaries, Mr. Coughlin shall, prior to providing that information or testimony, deliver to the Chairman of the Board and the Chief Executive Officer of the Bank and the Company, unless prohibited by applicable law, copies of the subpoenas and other documents and identify  information sought from Mr. Coughlin, and cooperate with the Company and the Bank and their counsel in connection with each request for such documents and information.  Mr. Coughlin shall provide the subpoenas, other documents and identification of information sought, to the Chairman of the Board and the Chief Executive Officer within one day of receipt of such subpoenas, other documents and notification of information sought, so that the Company, the Bank, and/or their affiliates and subsidiaries may seek to assert their rights and interests in connection with such subpoenas, other documents and information sought. In the event of a breach or threatened breach by Mr. Coughlin of the provisions of this Section, the Company andBank will be entitled to an injunction restraining Mr. Coughlin from disclosing, in whole or in part, the knowledge of the past, present, planned or considered business activities of the Company and the Bank or any other similar proprietary information, or from rendering any services to any person, firm, corporation, or other entity to whom such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed.  Nothing herein will be construed as prohibiting the Company or theBank from pursuing any other remedies available to the Company or theBank for such breach or threatened breach, including the recovery of damages from Mr. Coughlin.

(d)  Clawback And Forfeiture. Notwithstanding any other provision to the contrary contained herein, Mr. Coughlin and his estate or other beneficiaries shall forfeit all rights to receive or retain all payments and benefits providedin the Employment Agreement Amendment, and shall reimburse the Bank for all such payments and benefits receivedif:

(i)  Mr. Coughlinbreaches any of his agreements contained in Section 5;

(ii)  Mr. Coughlin makes, except as required by law, any disparaging remark, orally or in writing, about the Company or the Bank or about its operations, provided that this obligation shall not prohibit Mr. Coughlin from enforcing or defending any legal right he

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may have at law or in equity in appropriate legal proceedings against any other person, or from truthfully answering any questions posed to him by any judicial body or administrative agency, including any banking regulator;

(iii) Any financial statement filed is materially misleading as to the Company or the Bank’s results of operation for a fiscal year or the Company’s or Bank’s financial condition at the end of a fiscal year during which Mr. Coughlin was the chief executive officer of the Company and/or the Bank because of (A) any overstatement of the amount of one or more items of income or understatement of the amount of one or more items of expense or other charges against income for such fiscal year; or (B) any material overstatement in value of any one or more items of assets or understatement in value of any one or more items of liabilities at the end of such fiscal year; or

(iv)  Mr. Coughlin directly or indirectly, falsified or cause to be falsified, any book, record, or account or made or caused to be made a materially false or misleading statement, or omitted to state, or caused another person to omit to state, any material fact necessary in order to make statements made not misleading.

6.  Enforcement of Covenants.  Mr. Coughlin acknowledges that Mr. Coughlin has carefully read and considered all the terms and conditions of this Agreement, including the restraints imposed upon Mr. Coughlin pursuant to Section 5.  Mr. Coughlin agrees that these restraints are necessary for the reasonable and proper protection of Company, bank, affiliates, and/or subsidiaries and any such businesses successors and assigns and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area.  Mr. Coughlin represents and admits that Mr. Coughlin’s experience and capabilities are such that Mr. Coughlin can obtain service in a business engaged in other lines of business than the Bank, Company, affiliates, and/or subsidiaries, and that the enforcement of a remedy by way of injunction will not prevent Mr. Coughlin from earning a livelihood.  Mr. Coughlin further acknowledges that, were Mr. Coughlin to breach any of the covenants contained in Section 5, the damage to Company, Bank, affiliates, and/or subsidiaries would be irreparable.  Mr. Coughlin therefore agrees that Company, Bank, affiliates, and/or subsidiaries, in addition to any other remedies available to them, shall be entitled to preliminary and permanent injunctive relief against any breach or threatened breach by Mr. Coughlin of any of the covenants herein, without any requirement to post a bond or similar security.  The parties further agree that, in the event that any provision of Section 5 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great a range of activities, such provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law.

7.  Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New Jersey, without regard to the application of any choice-of-law rules that would result in the application of another state’s laws.

8.  Entire Agreement.This Agreement sets forth the entire agreement between the Parties concerning the subject matter of this Agreement and supersedes any other written or oral promises or proposals concerning the subject matter hereof.No waiver or amendment of this

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Agreement will be effective unless it is in writing, refers to this Agreement, and is signed by the Parties.

9.  Successors and Assigns.This Agreement is binding upon, and shall inure to the benefit of, the Parties and their respective successors and assigns.

10.  Arbitration.  Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted within 25miles of the main office of the Bank, in accordance with the Rules of the American Arbitration Association then in effect. For purposes of clarity, the provisions of this Section 10 shall mean that all disputes must be resolved by arbitration and shall not be resolved in a court of law. There will be no jury trial and Mr. Coughlin, by acceptance of this Agreement, hereby waives any right he may otherwise have to a trial by jury. Notwithstanding the foregoing, any suit that may be brought by the Company, Bank, and/or subsidiaries that would seek injunctive relief under Section 5 and 6 of this Agreement shall not be subject to the provisions of this Section 10.

11.  Revocation. This Agreement is subject to revocation pursuant to Section 16 of the Employment Agreement Amendment.

[Signature Page Follows]

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above.

BCB BANCORP, INC.

By: /s/ Mark D. Hogan

Name: Mark D. Hogan, Chairman

BCB COMMUNITY BANK

By: /s/ Mark D. Hogan

Name: Mark D. Hogan, Chairman

/s/ Thomas M. Coughlin
THOMAS M.COUGHLIN

10/24/2023 SL1 1937400v7 114694.00002

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Thomas Coughlin, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of BCB Bancorp, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and;

d) disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November2, 2023	/s/ Thomas Coughlin
	Thomas Coughlin
	President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Principal Accounting Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jawad Chaudhry, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of BCB Bancorp, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and;

d) disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:November2, 2023	/s/ Jawad Chaudhry
	Jawad Chaudhry Chief Financial Officer
	(Principal Accounting and Financial Officer)

EX-32

Exhibit 32

Certification pursuant to

18 U.S.C. Section 1350,

as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Thomas Coughlin, President and Chief Executive Officer and Jawad Chaudhry, Chief Financial Officer of BCB Bancorp, Inc. (the “Company”) each certify in his capacity as an officer of the Company that he has reviewed the quarterly report of the Company on Form 10-Q for the quarter ended September30, 2023 and that to the best of his/her knowledge:

(1) the report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

The purpose of this statement is solely to comply with Title 18, Chapter 63, Section 1350 of the United States Code, as amended by Section 906 of the Sarbanes-Oxley Act of 2002.

Date: November2, 2023	/s/ Thomas Coughlin
	President and Chief Executive Officer (Principal Executive Officer)
Date: November2, 2023	/s/ Jawad Chaudhry
	Chief Financial Officer (Principal Accounting and Financial Officer)

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Nov. 01, 2023
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	0-50275
Entity Registrant Name	BCB Bancorp, Inc.
Entity Incorporation State Country Code	NJ
Entity Tax Identification Number	26-0065262
Entity Address Address Line 1	104-110 Avenue C
Entity Address City Or Town	Bayonne
Entity Address State Or Province	NJ
Entity Address Postal Zip Code	07002
City Area Code	201
Local Phone Number	823-0700
Security 12b Title	Common Stock, no par value
Trading Symbol	BCBP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock Shares Outstanding		16,848,006
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001228454
Amendment Flag	false

XML

Consolidated Statements of Financial Condition - USD ($) $ in Thousands		Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and amounts due from depository institutions		$ 16,772	$ 11,520
Interest-earning deposits		235,144	217,839
Total cash and cash equivalents		251,916	229,359
Interest-earning time deposits		735	735
Debt securities available for sale		86,172	91,715
Equity investments		8,272	17,686
Loans held for sale		472	658
Loans receivable, net of allowance for credit losses of $31,914 and $32,373 respectively	[1]	3,285,727	3,045,331
Federal Home Loan Bank of New York stock, at cost		31,629	20,113
Premises and equipment, net		13,363	10,508
Accrued interest receivable		16,175	13,455
Other real estate owned		75	75
Deferred income taxes		16,749	16,462
Goodwill and other intangibles		5,288	5,382
Operating lease right-of-use assets		12,953	13,520
Bank-owned life insurance ("BOLI")		72,810	71,656
Other assets		9,784	9,538
Total Assets		3,812,120	3,546,193
LIABILITIES
Non-interest-bearing deposits		523,912	613,910
Interest bearing deposits		2,295,644	2,197,697
Total deposits		2,819,556	2,811,607
FHLB advances		622,674	382,261
Subordinated debentures		37,624	37,508
Operating lease liability		13,318	13,859
Other liabilities		15,312	9,704
Total Liabilities		3,508,484	3,254,939
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000,000 shares authorized; issued and outstanding 2,101 shares of Series H 3.5% and Series I 3.0%, (liquidation value $10,000 per share) noncumulative perpetual preferred stock at September 30, 2023 and 2,123 shares of Series H 3.5% and Series I 3.0% at December 31, 2022, respectively
Additional paid-in capital preferred stock		20,783	21,003
Common stock: no par value; 40,000,000 shares authorized; issued 20,081,977 and 19,898,197 at September 30, 2023 and December 31, 2022, respectively, outstanding 16,848,006 and 16,930,979, at September 30, 2023 and December 31, 2022, respectively
Additional paid-in capital common stock		198,097	196,164
Retained earnings		132,729	115,109
Accumulated other comprehensive loss		(9,626)	(6,491)
Treasury stock, at cost, 3,233,971 and 2,967,218 shares at September 30, 2023 and December 31, 2022, respectively		(38,347)	(34,531)
Total Stockholders' Equity		303,636	291,254
Total Liabilities and Stockholders' Equity		$ 3,812,120	$ 3,546,193

[1] The Company adopted ASU 2016-13 as of January 1, 2023. Prior year periods have not been restated.

XML

Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Loans receivable, allowance for credit losses	$ 31,914	$ 31,914	$ 32,373
Preferred stock, par value per share	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000	10,000,000
Preferred stock, shares issued	2,101	2,101	2,123
Preferred stock, shares outstanding	2,101	2,101	2,123
Common stock, no par value	$ 0	$ 0	$ 0
Common stock, shares authorized	40,000,000	40,000,000	40,000,000
Common stock, shares issued	20,081,977	20,081,977	19,898,197
Common stock, shares outstanding	16,848,006	16,848,006	16,930,979
Treasury stock, shares	3,233,971	3,233,971	2,967,218
Series H Preferred Stock [Member]
Preferred stock, dividend rate	3.50%	3.50%	3.50%
Preferred stock, liquidation preference per share	$ 10,000	$ 10,000
Series I Preferred Stock [Member]
Preferred stock, dividend rate	3.00%	3.00%	3.00%
Preferred stock, liquidation preference per share	$ 10,000	$ 10,000

XML

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest and dividend income:
Loans, including fees		$ 44,133	$ 32,302	$ 125,666	$ 87,404
Mortgage-backed securities		217	173	587	379
Other investment securities		1,045	1,103	3,235	2,990
FHLB stock and other interest earning assets		3,672	822	9,168	1,812
Total interest income		49,067	34,400	138,656	92,585
Deposits:
Demand		4,556	1,169	11,900	2,873
Savings and club		182	113	443	331
Certificates of deposit		10,922	1,087	25,849	2,916
Total deposits		15,660	2,369	38,192	6,120
Borrowings		7,727	1,080	20,324	2,701
Total interest expense		23,387	3,449	58,516	8,821
Net interest income		25,680	30,951	80,140	83,764
Provision (benefit) for credit losses	[1]	2,205		4,177	(2,575)
Net interest income after (provision) benefit for credit losses		23,475	30,951	75,963	86,339
Non-interest income:
Fees and service charges		1,349	1,251	3,889	3,678
BOLI income		466	646	1,154	2,087
Gain on sales of loans		19	18	25	126
Realized and unrealized losses on equity investments		(494)	(559)	(4,390)	(5,546)
Other		66	90	182	188
Total non-interest income		1,406	1,446	860	533
Non-interest expense:
Salaries and employee benefits		7,524	6,944	22,853	20,395
Occupancy and equipment		2,622	2,608	7,734	7,976
Data processing and communications		1,787	1,520	5,247	4,454
Professional fees		560	614	1,748	1,597
Director fees		274	375	809	992
Regulatory assessments		1,111	264	2,443	812
Advertising and promotional		317	286	945	681
Other real estate owned, net		1	1	3	6
Other		1,267	841	2,241	2,555
Total non-interest expense		15,463	13,453	44,023	39,468
Income before income tax provision		9,418	18,944	32,800	47,404
Income tax provision		2,707	5,552	9,379	13,897
Net Income		6,711	13,392	23,421	33,507
Preferred stock dividends		173	174	520	624
Net Income available to common stockholders		$ 6,538	$ 13,218	$ 22,901	$ 32,883
Net Income per common share-basic and diluted
Basic		$ 0.39	$ 0.78	$ 1.36	$ 1.94
Diluted		$ 0.39	$ 0.76	$ 1.35	$ 1.89
Weighted average number of common shares outstanding
Basic		16,830	16,982	16,868	16,986
Diluted		16,854	17,356	16,951	17,369

[1] The Company adopted ASU 2016-13 as of January 1, 2023. Prior year periods have not been restated.

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Consolidated Statements of Comprehensive Income [Abstract]
Net Income	$ 6,711	$ 13,392	$ 23,421	$ 33,507
Unrealized losses on available-for-sale debt securities:
Unrealized holding losses arising during the period	(414)	(4,191)	(4,204)	(9,675)
Tax Effect	209	1,039	1,069	2,398
Other comprehensive loss	(205)	(3,152)	(3,135)	(7,277)
Comprehensive income	$ 6,506	$ 10,240	$ 20,286	$ 26,230

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Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Additional Paid-In Capital [Member] Adjusted Balance [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member] Effect of Adopting ASU No. 2016-13 ("CECL") [Member]	Retained Earnings [Member] Adjusted Balance [Member]	Retained Earnings [Member]	Treasury Stock [Member] Adjusted Balance [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member] Adjusted Balance [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Effect of Adopting ASU No. 2016-13 ("CECL") [Member]	Adjusted Balance [Member]	Total
Beginning balance at Dec. 31, 2021		$ 222,850			$ 81,171		$ (31,125)		$ 1,128			$ 274,024
Net income					33,507							33,507
Other comprehensive income									(7,277)			(7,277)
Exercise of stock options		3										3
Stock-based compensation expense		458										458
Treasury stock purchases							(1,998)					(1,998)
Dividends payable on noncumulative perpetual preferred stock					(624)							(624)
Redemption of Series Preferred Stock		(14,730)										(14,730)
Issuance of Series I Preferred Stock		6,809										6,809
Cash dividends on common stock (per share declared)					(7,809)							(7,809)
Dividend reinvestment plan		351			(351)
Stock purchase plan		319										319
Ending balance at Sep. 30, 2022		216,060			105,894		(33,123)		(6,149)			282,682
Beginning balance at Dec. 31, 2021		222,850			81,171		(31,125)		1,128			274,024
Net income					23,421							23,421
Ending balance at Dec. 31, 2022	$ 217,167	217,167	$ 2,870	$ 117,979	115,109	$ (34,531)	(34,531)	$ (6,491)	(6,491)	$ 2,870	$ 294,124	291,254
Beginning balance at Jun. 30, 2022		211,130			95,393		(31,889)		(2,997)			271,637
Net income					13,392							13,392
Other comprehensive income									(3,152)			(3,152)
Exercise of stock options		3										3
Stock-based compensation expense		267										267
Treasury stock purchases							(1,234)					(1,234)
Dividends payable on noncumulative perpetual preferred stock					(174)							(174)
Issuance of Series I Preferred Stock		4,439										4,439
Cash dividends on common stock (per share declared)					(2,596)							(2,596)
Dividend reinvestment plan		121			(121)
Stock purchase plan		100										100
Ending balance at Sep. 30, 2022		216,060			105,894		(33,123)		(6,149)			282,682
Beginning balance at Dec. 31, 2022	$ 217,167	217,167	$ 2,870	$ 117,979	115,109	$ (34,531)	(34,531)	$ (6,491)	(6,491)	$ 2,870	$ 294,124	291,254
Net income												23,421
Other comprehensive income									(3,135)			(3,135)
Exercise of stock options		418										418
Stock-based compensation expense		402										402
Treasury stock purchases							(3,816)					(3,816)
Dividends payable on noncumulative perpetual preferred stock					(520)							(520)
Redemption of Series Preferred Stock		(220)										(220)
Cash dividends on common stock (per share declared)					(7,864)							(7,864)
Dividend reinvestment plan		287			(287)
Stock purchase plan		826										826
Ending balance at Sep. 30, 2023		218,880			132,729		(38,347)		(9,626)			303,636
Beginning balance at Jun. 30, 2023		218,524			128,867		(38,347)		(9,421)			299,623
Net income					6,711							6,711
Other comprehensive income									(205)			(205)
Stock-based compensation expense		185										185
Dividends payable on noncumulative perpetual preferred stock					(173)							(173)
Redemption of Series Preferred Stock		(220)										(220)
Cash dividends on common stock (per share declared)					(2,584)							(2,584)
Dividend reinvestment plan		92			(92)
Stock purchase plan		299										299
Ending balance at Sep. 30, 2023		$ 218,880			$ 132,729		$ (38,347)		$ (9,626)			$ 303,636

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Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accounting Standards Update [Extensible Enumeration]			us-gaap:AccountingStandardsUpdate201613Member
Exercise of stock options (shares)		111,750	61,000	111,950
Treasury stock purchases (shares)		116,626	266,753	71,513
Stockholders’ equity	$ 303,636	$ 282,682	$ 303,636	$ 282,682
Cash dividends on common stock (per share)	$ 0.16	$ 0.16	$ 0.48	$ 0.48
Series D Preferred Stock [Member]
Preferred stock, dividend rate				4.50%
Series G Preferred Stock [Member]
Preferred stock, dividend rate				6.00%
Series H Preferred Stock [Member]
Preferred stock, dividend rate	3.50%	3.50%	3.50%	3.50%
Series I Preferred Stock [Member]
Preferred stock, dividend rate	3.00%	3.00%	3.00%	3.00%

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022
Cash Flows from Operating Activities:
Net Income		$ 23,421	$ 33,507
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment		1,480	1,735
Amortization and accretion, net		(1,835)	(1,005)
Provision (benefit) for credit losses	[1]	4,177	(2,575)
Deferred income tax expense (benefit)		782	(505)
Loans originated for sale		(1,528)	(5,733)
Proceeds from sales of loans		1,739	6,811
Gain on sales of loans originated for sale		(25)	(126)
Realized and unrealized losses on equity investments		4,390	5,546
Stock-based compensation expense		402	458
BOLI Income		(1,154)	(2,087)
(Increase) decrease in accrued interest receivable		(2,720)	(1,910)
(Increase) decrease in other assets		(246)	700
Increase (decrease) in accrued interest payable		2,662	(214)
Increase (decrease) in other liabilities		2,946	(1,841)
Net Cash Provided by Operating Activities		34,491	32,761
Cash flows from investing activities:
Proceeds from repayments, calls, and maturities on securities available for sale		13,653	9,310
Purchases of securities		(12,498)	(26,968)
Proceeds from sales of securities		5,024	1,232
Net increase in loans receivable		(239,035)	(477,429)
Proceeds from BOLI			3,500
Additions to premises and equipment		(4,335)	(221)
Purchase of Federal Home Loan Bank of New York stock		(11,516)	(6,304)
Net Cash Used In Investing Activities		(248,707)	(496,880)
Cash flows from financing activities:
Net increase in deposits		7,949	151,544
Proceeds from Federal Home Loan Bank of New York Long Term Advances		400,000
Net change in Federal Home Loan Bank of New York Short Term Advances		(160,000)	140,000
Purchases of treasury stock		(3,816)	(1,998)
Cash dividends paid on common stock		(7,864)	(7,809)
Cash dividends paid on preferred stock		(520)	(624)
Net proceeds from issuance of common stock		826	319
Net proceeds from issuance of preferred stock			6,809
Payments for redemption of preferred stock		(220)	(14,730)
Exercise of stock options		418	3
Net Cash Provided by Financing Activities		236,773	273,514
Net Increase (Decrease) in Cash and Cash Equivalents		22,557	(190,605)
Cash and Cash Equivalents-Beginning		229,359	411,629
Cash and Cash Equivalents-Ending		251,916	221,024
Supplementary Cash Flow Information:
Cash paid during the period for: Income taxes		12,322	13,615
Cash paid during the period for: Interest		$ 55,853	$ 9,036

[1] The Company adopted ASU 2016-13 as of January 1, 2023. Prior year periods have not been restated.

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Basis of Presentation

9 Months Ended

Sep. 30, 2023

Basis of Presentation [Abstract]

Basis of Presentation

Note 1 – Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of BCB Bancorp, Inc. (the “Company”) and the Company’s wholly owned subsidiaries, BCB Community Bank (the “Bank”), BCB Holding Company Investment Corporation, Special Asset REO I, LLC., and Special Asset REO II, LLC. The Company’s business is conducted principally through the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and, therefore, do not necessarily include all information that would be included in audited consolidated financial statements. The information furnished reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of consolidated financial condition and results of operations. All such adjustments are of a normal recurring nature. These results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, or any other future period. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates.

These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the year ended December 31, 2022, which are included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred between December 31, 2022 and the date these consolidated financial statements were issued.

Risks and Uncertainties - The occurrence of events which adversely affect the global, national and regional economies may have a negative impact on our business. Like other financial institutions, our business relies upon the ability and willingness of our customers to transact business with us, including banking, borrowing and other financial transactions. A strong and stable economy at each of the local, federal and global levels is often a critical component of consumer confidence and typically correlates positively with our customers’ ability and willingness to transact certain types of business with us. Local and global events outside of our control which disrupt the New Jersey, New York, United States and/or global economy may therefore negatively impact our business and financial condition. A public health crisis such as the COVID-19 pandemic is no exception, and its adverse health and economic effects may adversely impact our business and financial condition.

 

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2023

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

Note 2 - Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The amendments in this ASU defer the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective upon issuance. The FASB had previously issued 2020-04 - Facilitation of the Effects of Reference Rate Reform on Financial Reporting and related amendments in 2020 to ease the potential burden in accounting for reference rate reform. The amendments in ASU 2020-04 were elective and applied to all entities that have contracts, hedging relationships, and other transactions that reference the London Inter-bank Offer Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The Company does not expect such adoption of the new ASU to have an impact on the Company’s consolidated financial instruments.

The Company adopted ASU 2016-13 on January 1, 2023 for all financial assets measured at amortized cost and off-balance sheet credit exposures using the modified retrospective method. Results for the three and nine months ended September 30, 2023 are presented under Accounting Standards Codification 326, Financial Instruments – Credit Losses, while prior period amounts continue to be reported with previously applicable GAAP and have not been restated. Effective January 1, 2023, the Company recorded a $4.2 million decrease in allowance for credit losses on loans that is referred to as the current expected credit loss (“CECL”) methodology (previously allowance for loan losses), an elimination of $1.1 million of reserves related to acquired loans, and a $1.3 million increase related to allowance for off-balance sheet credit exposures included in other liabilities section of the consolidated statements of financial condition, which resulted in a total cumulative effect adjustment of $2.9 million and an increase to retained earnings a component of the stockholders’ equity (net of tax). Further information regarding the impact of CECL can be found in Note 7 – Loan Receivable and Allowance for Credit Losses.

Allowance for Credit Losses

The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated statement of financial condition. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the consolidated statement of financial condition in other liabilities while the provision for credit losses related to unfunded commitments is reported in other non-interest expense.

Allowance for Credit Losses on Loans Receivable

The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. Individually evaluated loans are primarily non-accrual and collateral dependent loans. Furthermore, the Company evaluates the pooling methodology at least annually to ensure that loans with similar risk characteristics are pooled appropriately. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off.

The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. The Company calculates estimated credit losses for these loan segments using quantitative models and qualitative factors. Further information on loan segmentation and the credit loss estimation is included in Note 7 – Loan Receivables and Allowance for Credit Losses.

Individually Evaluated Loans

On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan.

Allowance for Credit Losses on Off-Balance Sheet Commitments

The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated statement of financial condition and the related credit expense is recorded in other non-interest expense in the consolidated statements of income.

Allowance for Credit Losses on Available for Sale Securities

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors.  If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rate by major agencies and have a long history of no credit losses.

Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

 

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Reclassification

9 Months Ended

Sep. 30, 2023

Reclassification [Abstract]

Reclassification

Note 3 – Reclassification

Certain amounts have been reclassified to conform to the current period’s presentation. These changes had no effect on the Company’s results of operations or financial position.

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Equity Incentive Plans

9 Months Ended

Sep. 30, 2023

Equity Incentive Plans [Abstract]

Equity Incentive Plans

Note 4 – Equity Incentive Plans

Equity Incentive Plans

Under the 2018 Equity Incentive Plan, on January 12, 2022, awards of 33,000 shares of restricted stock, in aggregate, were declared for members of the Board of Directors of the Bank and the Company, which vest over a 4-year period, commencing on the anniversary of the award date. On September 30, 2022, awards of 36,000 shares of restricted stock, in aggregate, were declared for certain executive officers of the Bank and the Company, which fully vested on November 30, 2022.

On January 31, 2023, awards of 27,000 shares of restricted stock, in aggregate were declared for members of the Board of Directors of the Bank and the Company, which vest over a 4-year period, commencing on the anniversary of the award date.

The Company, under the plan approved by its shareholders on April 27, 2023 (“2023 Equity Incentive Plan”), authorized the issuance of up to 1,000,000 shares of common stock of the Company pursuant to grants of stock options, restricted stock awards, restricted stock units, and performance awards. Employees and directors of the Company and the Bank are eligible to participate in the 2023 Equity Incentive Plan. All stock options will be granted in the form of either "incentive" stock options or "non-qualified" stock options. Incentive stock options have certain tax advantages that must comply with the requirements of Section 422 of the Internal Revenue Code. Only employees are permitted to receive incentive stock options.

On June 30, 2023, an award of 25,252 shares of restricted stock was declared for a director and executive officer of the Bank and the Company, which fully vests on the anniversary of the award date.

‎

Note 4 – Equity Incentive Plans (Continued)

The following table presents a summary of the status of the Company’s restricted shares as of September 30, 2023 and 2022.

	Number of Shares Awarded		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2023	48,150	$	14.83
Granted	52,252		15.01
Vested	(13,650)		14.60
Forfeited	-		-
Non-vested at September 30, 2023	86,752	$	14.98

	Number of Shares Awarded		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2022	26,700	$	12.89
Granted	69,000		17.05
Vested	(9,150)		13.91
Forfeited	-		-
Non-vested at September 30, 2022	86,550	$	16.19

Restricted stock expense for the nine months ended September 30, 2023 and September 30, 2022 was $303,000 and $278,000, respectively. Expected future expenses relating to the non-vested restricted shares outstanding as of September 30, 2023 was approximately $960,000 over a weighted average period of 2.25 years.

The following table presents a summary of the status of the Company’s outstanding stock option awards as of September 30, 2023.

	Number of Option Shares		Range of Exercise Prices		Weighted Average Exercise Price
Outstanding at January 1, 2023	1,036,975	$	9.03-13.68	$	11.72
Options granted	-		-		-
Options exercised	(61,000)		9.03		9.03
Options forfeited	-		-		-
Options expired	-		-		-
Outstanding at September 30, 2023	975,975	$	10.55-13.68	$	11.89

As of September 30, 2023, stock options which were granted and were exercisable totaled 800,895. It is Company policy to issue new shares upon share option exercise.

Compensation expense for the nine months ended September 30, 2023 and September 30, 2022 was $99,000 and $180,000, respectively. Expected future compensation expense relating to the 175,080 shares of unvested options outstanding as of September 30, 2023 was $302,000 over a weighted average period of 3.12 years.

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Net Income per Common Share

9 Months Ended

Sep. 30, 2023

Net Income per Common Share [Abstract]

Net Income per Common Share

Note 5 – Net Income per Common Share

Basic net income per common share is computed by dividing net income less dividends on preferred stock by the weighted average number of shares of common stock outstanding. The diluted net income per common share is computed by adjusting the weighted average number of shares of common stock outstanding to include the effects of outstanding stock options, if dilutive, using the treasury stock method. Dilution is not applicable in periods of net loss. For the three and nine months ended September 30, 2023 and 2022, the difference in the weighted average number of basic and diluted common shares was due solely to the effects of outstanding stock options. For the three and nine months ended September 30, 2023 and 2022, there were no outstanding options considered to be anti-dilutive.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations:

	For the Three Months Ended September 30,
	2023					2022
		Income	Shares		Per Share		Income	Shares		Per Share
		(Numerator)	(Denominator)		Amount		(Numerator)	(Denominator)		Amount
	(In Thousands, except per share data)
Basic earnings per share:
Income available to common stockholders	$	6,538	16,830	$	0.39	$	13,218	16,982	$	0.78
Effect of dilutive securities:
Stock options		-	24				-	374
Diluted earnings per share:
Income available to common stockholders	$	6,538	16,854	$	0.39	$	13,218	17,356	$	0.76

	For the Nine Months Ended September 30,
	2023					2022
		Income	Shares		Per Share		Income	Shares		Per Share
		(Numerator)	(Denominator)		Amount		(Numerator)	(Denominator)		Amount
	(In Thousands, except per share data)
Basic earnings per share:
Income available to common stockholders	$	22,901	16,868	$	1.36	$	32,883	16,986	$	1.94
Effect of dilutive securities:
Stock options		-	83				-	383
Diluted earnings per share:
Income available to common stockholders	$	22,901	16,951	$	1.35	$	32,883	17,369	$	1.89

 

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Securities

9 Months Ended

Sep. 30, 2023

Securities [Abstract]

Securities

Note 6 - Securities

Equity Securities

Equity securities are defined to include (a) preferred, common and other ownership interests in entities including partnerships, joint ventures and limited liability companies and (b) rights to acquire or dispose of ownership interest in entities at fixed or determinable prices.

The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months and nine months ended September 30, 2023 and 2022:

	For the three months ended September 30,				For the nine months ended September 30,
(In Thousands)	2023		2022		2023		2022
Net losses recognized during the period on equity securities held at the reporting date	$	(436)	$	(559)	$	(4,157)	$	(5,487)
Net losses recognized during the period on equity securities sold during the period		(58)		-		(233)		(59)
Realized and unrealized losses on equity investments during the reporting period	$	(494)	$	(559)	$	(4,390)	$	(5,546)

‎

Note 6 - Securities (continued)

Debt Securities Available for Sale

The following tables present by maturity the amortized cost, gross unrealized gains and losses on, and fair value of, securities available for sale as of September 30, 2023 and December 31, 2022:

	September 30, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
More than one to five years	$	708	$	-	$	41	$	667
More than five to ten years		4,388		-		381		4,007
More than ten years		33,604		-		4,613		28,991
Sub-total:		38,700		-		5,035		33,665
Corporate Debt securities:
More than one to five years		6,000		-		115		5,885
More than five to ten years		53,564		-		6,942		46,622
Sub-total:		59,564		-		7,057		52,507
Total securities	$	98,264	$	-	$	12,092	$	86,172

	December 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
More than five to ten years		5,445		-		350		5,095
More than ten years		23,210		-		3,435		19,775
Sub-total:		28,655		-		3,785		24,870
Corporate Debt securities:
Due within one year		7,321		-		91		7,230
More than five to ten years		59,629		-		4,005		55,624
Sub-total:		66,950		-		4,096		62,854
Municipal obligations:
Due after ten years		3,997		-		6		3,991
Sub-total:		3,997		-		6		3,991
Total Debt Securities Available for Sale	$	99,602	$	-	$	7,887	$	91,715

‎

Note 6 - Securities (continued)

The unrealized losses, categorized by the length of time of continuous loss position, and fair value of related securities available for sale were as follows:

	12 Months or Less				More than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
September 30, 2023
Residential Mortgage-backed securities	$	11,987	$	489	$	21,677	$	4,546	$	33,664	$	5,035
Corporate Debt securities		22,980		2,506		28,228		4,551		51,208		7,057
	$	34,967	$	2,995	$	49,905	$	9,097	$	84,872	$	12,092
December 31, 2022
Residential Mortgage-backed securities	$	17,362	$	2,022	$	7,508	$	1,763	$	24,870	$	3,785
Corporate Debt Securities		51,607		3,199		9,948		897		61,555		4,096
Municipal Obligations		3,991		6		-		-		3,991		6
	$	72,960	$	5,227	$	17,456	$	2,660	$	90,416	$	7,887

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Loans Receivable and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2023

Loans Receivable and Allowance for Credit Losses [Abstract]

Loans Receivable and Allowance for Credit Losses

Note 7 - Loans Receivable and Allowance for Credit Losses

The following tables present the recorded investment in loans receivable as of September 30, 2023 and December 31, 2022 by segment and class:

	September 30, 2023		December 31, 2022
		(In Thousands)
Residential one-to-four family	$	251,845	$	250,123
Commercial and multi-family		2,444,887		2,345,229
Construction		185,202		144,931
Commercial business(1)		370,512		282,007
Home equity(2)		66,046		56,888
Consumer		3,647		3,240
		3,322,139		3,082,418
Less:
Deferred loan fees, net		(4,498)		(4,714)
Allowance for credit losses(3)		(31,914)		(32,373)
Total Loans, net	$	3,285,727	$	3,045,331

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

(3) The Company adopted ASU 2016-13 on January 1, 2023 with a modified retrospective approach. Accordingly, at September 30, 2023, the allowance for credit losses was determined in accordance with ASC 326, “Financial Instruments-Credit Losses”.
‎

Note 7 – Loans Receivable and Allowance for Credit Losses (Continued)

Allowance for Credit Losses

The Company engages a third-party vendor to assist in the CECL calculation and has established a robust internal governance framework to oversee the quarterly estimation process for the allowance for credit losses (“ACL”). The ACL calculation methodology relies on regression-based discounted cash flow (“DCF”) models that correlate relationships between certain financial metrics and external market and macroeconomic variables. Following are some of the key factors and assumptions that are used in the Company’s CECL calculations:

methods based on probability of default and loss given default which are modeled based on macroeconomic scenarios;

a reasonable and supportable forecast period determined based on management’s current review of macroeconomic environment;

a reversion period after the reasonable and supportable forecast period;

estimated prepayment rates based on the Company’s historical experience and future macroeconomic environment;

estimated credit utilization rates based on the Company’s historical experience and future macroeconomic environment; and

incorporation of qualitative factors not captured within the modeled results. The qualitative factors include but are not limited to changes in lending policies, business conditions, changes in the nature and size of the portfolio, portfolio concentrations, and external factors such as competition.

Allowance for credit losses are aggregated for the major loan segments, with similar risk characteristics, summarized below. However, for the purposes of calculating the reserves, these segments may be further broken down into loan classes by risk characteristics that include but are not limited to regulatory call codes, industry type, geographic location, and collateral type.

Residential one-to-four family real estate loans involve certain risks such as interest rate risk and risk of non-repayment. Adjustable-rate residential real estate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. At the same time, the marketability of the underlying properties may be adversely affected by higher interest rates. Repayment risk may be affected by a number of factors including, but not necessarily limited to, job loss, divorce, illness and personal bankruptcy of the borrower.

Commercial and multi-family real estate lending entails additional risks as compared with residential family property lending. Such loans typically involve large loan balances to single borrowers or groups of related borrowers. The payment experience on such loans is typically dependent on the successful operation of the real estate project. The success of such projects is sensitive to changes in supply and demand conditions in the market for commercial real estate as well as general economic conditions.

Construction lending is generally considered to involve a high risk due to the concentration of principal in a limited number of loans and borrowers and the effects of the general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost (including interest) of the project. The nature of these loans is such that they are generally difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not necessarily pre-sold and thus pose a greater potential risk to the Bank than construction loans to individuals on their personal residence.

Commercial business lending, including lines of credit, is generally considered higher risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on the business. Commercial business loans are primarily secured by inventories and other business assets. In many cases, any repossessed collateral for a defaulted commercial business loans will not provide an adequate source of repayment of the outstanding loan balance.

Home equity lending entails certain risks such as interest rate risk and risk of non-repayment. The marketability of the underlying property may be adversely affected by higher interest rates, decreasing the collateral value securing the loan. Repayment risk can be affected by job loss, divorce, illness and personal bankruptcy of the borrower. Home equity line of credit lending entails securing an equity interest in the borrower’s home. In many cases, the Bank’s position in these loans is as a junior lien holder to another institution’s superior lien. This type of lending is often priced on an adjustable rate basis with the rate set at or above a predefined index. Adjustable-rate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default.

Other consumer loans generally have more credit risk because of the type and nature of the collateral and, in certain cases, the absence of collateral. Consumer loans generally have shorter terms and higher interest rates than other lending. In addition, consumer lending collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. In many cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan.

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Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table sets forth the activity in the Company’s allowance for credit losses for the three and nine months ended September 30, 2023, and the related portion of the allowances for credit losses that is allocated to each loan class, as of September 30, 2023 (in thousands):

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)		Home Equity (2)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance, July 1, 2023	$	2,453	$	15,045	$	4,090	$	7,864	$	722	$	31		-	$	30,205
Charge-offs:		-		-		-		(515)				-		-		(515)
Recoveries:		14		-		-		5		-		-		-		19
Provision (benefit):		(23)		(595)		573		2,297		(54)		7		-		2,205
Ending Balance, September 30, 2023		2,444		14,450		4,663		9,651		668		38		-		31,914
Ending Balance attributable to loans:
Individually evaluated		-		-		608		2,164		-		-		-		2,772
Collectively evaluated		2,444		14,450		4,055		7,487		668		38		-		29,142
Ending Balance, September 30, 2023		2,444		14,450		4,663		9,651		668		38		-		31,914
Loans Receivables:
Individually evaluated		355		23,843		4,931		6,527		212		-		-		35,868
Collectively evaluated		251,490		2,421,044		180,271		363,985		65,834		3,647		-		3,286,271
Total Gross Loans:	$	251,845	$	2,444,887	$	185,202	$	370,512	$	66,046	$	3,647	$	-	$	3,322,139
(1) Includes business lines of credit.
(2) Includes home equity lines of credit.

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)			Home Equity (2)	Consumer		Unallocated		Total
Allowance for credit losses:
Ending Balance December 31, 2022		2,474		21,749		2,094		5,367		485		24		180		32,373
Effect of adopting ASU No. 2016-13 ("CECL")		144		(7,123)		1,387		1,418		182		7		(180)		(4,165)
Beginning Balance, January 1, 2023	$	2,618	$	14,626	$	3,481	$	6,785	$	667	$	31	$	-	$	28,208
Charge-offs:		-		-		-		(555)		-		-		-		(555)
Recoveries:		38		-		-		30		16		-		-		84
Provision (benefit):		(212)		(176)		1,182		3,391		(15)		7		-		4,177
Ending Balance, September 30, 2023	$	2,444	$	14,450	$	4,663	$	9,651	$	668	$	38	$	-	$	31,914

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

‎

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table sets forth the activity in the Company’s allowance for credit losses for the three and nine months ended September 30, 2022, and the related portion of the allowances for credit losses that is allocated to each loan class, as of September 30, 2022 (in thousands): 

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)		Home Equity (2)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance, July 1, 2022	$	2,565	$	21,157	$	2,348	$	7,639	$	387	$	17	$	-	$	34,113
Charge-offs:		-		-		-		(931)		-		-		-		(931)
Recovery:		7		-		-		2		4		-		-		13
Provision (benefit):		(374)		390		96		(993)		75		3		803		-
Ending Balance September 30, 2022	$	2,198	$	21,547	$	2,444	$	5,717	$	466	$	20	$	803	$	33,195
Ending Balance attributable to loans:
Individually evaluated	$	204	$	-	$	519	$	3,509	$	6	$	-	$	-	$	4,238
Collectively evaluated		1,994		21,547		1,925		2,208		460		20		803		28,957
Ending Balance September 30, 2022	$	2,198	$	21,547	$	2,444	$	5,717	$	466	$	20	$	803	$	33,195
Loans Receivables:
Individually evaluated	$	4,914	$	27,090	$	3,180	$	4,607	$	733	$	-	$	-	$	40,524
Collectively evaluated		237,324		2,137,230		149,923		201,054		55,331		2,545		-		2,783,407
Total Gross Loans:	$	242,238	$	2,164,320	$	153,103	$	205,661	$	56,064	$	2,545	$	-	$	2,823,931

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)			Home Equity (2)	Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance, January 1, 2022	$	4,094	$	22,065	$	2,231	$	8,000	$	533	$	14	$	182	$	37,119
Charge-offs:		-		-		-		(1,703)		-		-		-		(1,703)
Recovery:		9		-		-		138		9		198		-		354
Provision (benefit):		(1,905)		(518)		213		(718)		(76)		(192)		621		(2,575)
Ending Balance, September 30, 2022	$	2,198	$	21,547	$	2,444	$	5,717	$	466	$	20	$	803	$	33,195

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

The following table sets forth the amount recorded in loans receivable at December 31, 2022. The table also details the amount of total loans receivable that are evaluated individually, and collectively, for impairment and the related portion of the allowance for credit losses that is allocated to each loan class (in thousands):

		Residential		Commercial & Multi-family		Construction		Commercial Business (1)		Home Equity (2)		Consumer		Unallocated		Total
Allowance for credit losses:
Ending Balance attributable to loans:
Individually evaluated	$	196	$	-	$	518	$	2,066	$	4	$	-	$	-	$	2,784
Collectively evaluated		2,278		21,749		1,576		3,301		481		24		180		29,589
Ending Balance, December 31, 2022	$	2,474	$	21,749	$	2,094	$	5,367	$	485	$	24	$	180	$	32,373
Loans Receivables:
Individually evaluated	$	5,147	$	15,397	$	3,180	$	3,821	$	727	$	-	$	-	$	28,272
Collectively evaluated		244,976		2,329,832		141,751		278,186		56,161		3,240		-		3,054,146
Total Gross Loans:	$	250,123	$	2,345,229	$	144,931	$	282,007	$	56,888	$	3,240	$	-	$	3,082,418

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

‎

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table presents the activity in the allowance for credit losses on off-balance sheet exposures for the three and nine months ended September 30, 2023 (in thousands):

		Three Months Ended September 30, 2023		Nine Months Ended September 30, 2023
		(In thousands)		(In thousands)
Allowance for Credit Losses:
Beginning Balance	$	254	$	-
Impact of adopting ASU No. 2016-13 ("CECL") effective January 1, 2022		-		1,266
Provision (benefit)		148		(864)
Balance at September 30, 2023	$	402	$	402

‎

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The Company adopted Accounting Standards Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The Company did not have any loans that were both experiencing financial difficulty and modified during the nine months ending September 30, 2023.

The following table sets forth the delinquency status of total loans receivable as of September 30, 2023:

													Loans Receivable
	30-59 Days		60-90 Days		Greater Than		Total Past				Total Loans		>90 Days
	Past Due		Past Due		90 Days		Due		Current		Receivable		and Accruing
		(In Thousands)
Residential one-to-four family	$	50	$	856	$	178	$	1,084	$	250,761	$	251,845	$	-
Commercial and multi-family		12,195		6,378		3,267		21,840		2,423,047		2,444,887		-
Construction		-		2,045		2,886		4,931		180,271		185,202		-
Commercial business(1)		2,056		3,095		798		5,949		364,563		370,512		-
Home equity(2)		472		164		-		636		65,410		66,046		-
Consumer		-		1		-		1		3,646		3,647		-
Total	$	14,773	$	12,539	$	7,129	$	34,441	$	3,287,698	$	3,322,139	$	-

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

The following table sets forth the delinquency status of total loans receivable at December 31, 2022:

													Loans Receivable
	30-59 Days		60-90 Days		Greater Than		Total Past				Total Loans		>90 Days
	Past Due		Past Due		90 Days		Due		Current		Receivable		and Accruing
		(In Thousands)
Residential one-to-four family	$	253	$	314	$	-	$	567	$	249,556	$	250,123	$	-
Commercial and multi-family		2,163		428		-		2,591		2,342,638		2,345,229		-
Construction		-		-		3,180		3,180		141,751		144,931		-
Commercial business(1)		190		1,115		1,086		2,391		279,616		282,007		-
Home equity(2)		699		-		-		699		56,189		56,888		-
Consumer		-		-		-		-		3,240		3,240		-
Total	$	3,305	$	1,857	$	4,266	$	9,428	$	3,072,990	$	3,082,418	$	-

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The table below sets forth the amounts and types of non-accrual loans in the Bank’s loan portfolio at September 30, 2023 and December 31, 2022, respectively. Loans are placed on non-accrual status when they become more than 90 days delinquent, or when the collection of principal and/or interest become doubtful.

As of September 30, 2023, and December 31, 2022, non-accrual loans differed from the amount of total loans past due 90 days due to loans 90 days past due and still accruing, or loans that were previously 90 days past due which are maintained on non-accrual status for a minimum of six months until the borrower has demonstrated its ability to satisfy the terms of the loan. There were $303,000 at September 30, 2023 and $843,000 at December 31, 2022 in non-accrual loans that were less than ninety days past due.

		As of September 30, 2023		As of December 31, 2022
		(In Thousands)		(In Thousands)
Non-Accruing Loans:
Residential one-to-four family	$	178	$	243
Commercial and multi-family		3,267		346
Construction		2,886		3,180
Commercial business(1)		1,600		1,340
Total	$	7,931	$	5,109

_________

(1) Includes business lines of credit.

Had non-accrual loans been performing in accordance with their original terms, the interest income recognized for the nine months ended September 30, 2023 and the twelve months ended December 31, 2022 would have been approximately $1.5 million and $1.0 million, respectively. The Bank has not committed to lend additional funds to the borrowers whose loans have been placed on non-accrual status. At September 30, 2023 and December 31, 2022 there were no loans more than 90 days past due and still accruing interest.

‎

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

Criticized and Classified Assets

Company policies provide for a classification system for problem assets. Under this classification system, problem assets are classified as “substandard,” “doubtful,” or “loss.”

The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies. The grades assigned and definitions are as follows, and loans graded excellent, above average, good and watch list (risk ratings 1-5) are treated as “pass” for grading purposes. The “criticized” risk rating (6) and the “classified” risk ratings (7-9) are detailed below:

6 – Special Mention- Loans currently performing but with potential weaknesses including adverse trends in borrower’s operations, credit quality, financial strength, or possible collateral deficiency.

7 – Substandard- Loans that are inadequately protected by current sound worth, paying capacity, and collateral support. Loans on “non-accrual” status. The loan needs special and corrective attention.

8 – Doubtful- Weaknesses in credit quality and collateral support make full collection improbable, but pending reasonable factors remain sufficient to defer the loss status.

9 – Loss- Continuance as a bankable asset is not warranted. However, this does not preclude future attempts at partial recovery.

‎

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating at September 30, 2023 and gross charge-offs for the nine months ended September 30, 2023.

Loans by Year of Origination at September 30, 2023
		2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
Residential one-to-four family
Pass	$	16,805	$	54,608	$	38,402	$	31,622	$	12,184	$	96,050	$	-	$	-	$	249,671
Special Mention		-		496		91		-		-		91		-		-		678
Substandard		-		-		1,318		-		-		178		-		-		1,496
Total one-to-four family	$	16,805	$	55,104	$	39,811	$	31,622	$	12,184	$	96,319	$	-	$	-	$	251,845
Commercial and multi-family
Pass	$	219,180	$	822,626	$	226,073	$	217,855	$	52,614	$	848,504	$	1,922	$	-	$	2,388,774
Special Mention		-		-		-		-		-		26,690		-		-		26,690
Substandard		-		3,071		4,079		3,575		-		18,698		-		-		29,423
Total Commercial and multi-family	$	219,180	$	825,697	$	230,152	$	221,430	$	52,614	$	893,892	$	1,922	$	-	$	2,444,887
Construction
Pass	$	15,108	$	75,672	$	57,434	$	20,499	$	-	$	5,878	$	5,681	$	-	$	180,272
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		1,458		-		586		-		2,886		-		-		4,930
Total Construction	$	15,108	$	77,130	$	57,434	$	21,085	$	-	$	8,764	$	5,681	$	-	$	185,202
Commercial business
Pass	$	2,553	$	305	$	3,314	$	4,333	$	7,143	$	36,487	$	304,133	$	-	$	358,268
Special Mention		-		-		-		-		369		1,666		3,582		-		5,617
Substandard		-		-		-		-		-		3,597		3,030		-		6,627
Total Commercial business	$	2,553	$	305	$	3,314	$	4,333	$	7,512	$	41,750	$	310,745	$	-	$	370,512
Home equity
Pass	$	4,189	$	1,704	$	565	$	782	$	1,306	$	6,601	$	50,074	$	496	$	65,717
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		117		212		329
Total Home equity	$	4,189	$	1,704	$	565	$	782	$	1,306	$	6,601	$	50,191	$	708	$	66,046
Consumer
Pass	$	1,463	$	493	$	1,524	$	112	$	47	$	-	$	8	$	-	$	3,647
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total Consumer	$	1,463	$	493	$	1,524	$	112	$	47	$	-	$	8	$	-	$	3,647
Total Loans	$	259,298	$	960,433	$	332,800	$	279,364	$	73,663	$	1,047,326	$	368,547	$	708	$	3,322,139
Gross charge-offs	$	250	$	305	$	-	$	-	$	-	$	-	$	-	$	-	$	555

‎

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating at December 31, 2022.

Loans by Year of Origination at December 31, 2022
		2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
Residential one-to-four family
Pass	$	56,893	$	40,465	$	33,019	$	12,959	$	23,918	$	82,144	$	-	$	-	$	249,398
Special Mention		-		-		-		-		-		303		-		-		303
Substandard		-		179		-		-		-		243		-		-		422
Total one-to-four family	$	56,893	$	40,644	$	33,019	$	12,959	$	23,918	$	82,690	$	-	$	-	$	250,123
Commercial and multi-family
Pass	$	854,299	$	234,441	$	235,830	$	55,752	$	312,353	$	628,191	$	-	$	-	$	2,320,866
Special Mention		-		-		-		-		-		14,183		-		-		14,183
Substandard		599		-		-		-		8,000		1,581		-		-		10,180
Total Commercial and multi-family	$	854,898	$	234,441	$	235,830	$	55,752	$	320,353	$	643,955	$	-	$	-	$	2,345,229
Construction
Pass	$	51,783	$	58,827	$	17,518	$	-	$	1,794	$	4,031	$	7,798	$	-	$	141,751
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		3,180		-		-		-		3,180
Total Construction	$	51,783	$	58,827	$	17,518	$	-	$	4,974	$	4,031	$	7,798	$	-	$	144,931
Commercial business
Pass	$	70	$	5,331	$	5,470	$	8,070	$	22,940	$	19,487	$	212,402	$	-	$	273,770
Special Mention		-		-		-		431		-		1,600		2,385		-		4,416
Substandard		-		-		-		-		2,686		758		377		-		3,821
Total Commercial business	$	70	$	5,331	$	5,470	$	8,501	$	25,626	$	21,845	$	215,164	$	-	$	282,007
Home equity
Pass	$	1,541	$	643	$	830	$	1,390	$	1,465	$	6,437	$	43,857	$	513	$	56,676
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		212		212
Total Home equity	$	1,541	$	643	$	830	$	1,390	$	1,465	$	6,437	$	43,857	$	725	$	56,888
Consumer
Pass	$	994	$	2,034	$	139	$	67	$	-	$	-	$	6	$	-	$	3,240
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total Consumer	$	994	$	2,034	$	139	$	67	$	-	$	-	$	6	$	-	$	3,240
Total Loans	$	966,179	$	341,920	$	292,806	$	78,669	$	376,336	$	758,958	$	266,825	$	725	$	3,082,418

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Stockholders' Equity

9 Months Ended

Sep. 30, 2023

Stockholders' Equity [Abstract]

Stockholders' Equity

Note 8 – Stockholders’ Equity

On September 14, 2023, the Company redeemed 22 outstanding shares of its Series H 3.5% Noncumulative Perpetual Preferred Stock, at their face value of $10,000 per share, for a total redemption amount of $220,000.

On September 23, 2022, the Company closed a round of private placement of Series I Noncumulative Perpetual Preferred Stock, par value $0.01 per share (the “Series I Preferred Stock”), resulting in gross proceeds of $4,440,000 for 444 shares.

On May 1, 2022, the Company redeemed all 940 outstanding shares of it’s Series D 4.5% Noncumulative Perpetual Preferred Stock, at their face value of $10,000 per share, for a total redemption amount of $9.4 million.

On March 24, 2022, BCB Bancorp, Inc. (the “Company”) closed a round of private placement of Series I Noncumulative Perpetual Preferred Stock, par value $0.01 per share (the “Series I Preferred Stock”), resulting in gross proceeds of $2,620,000 for 260 shares.

On February 4, 2022, the Company redeemed all 533 outstanding shares of its Series G 6.0% Noncumulative Perpetual Preferred Stock, at their face value of $10,000 per share, for a total redemption amount of $5.3 million.

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Bank-Owned Life Insurance

9 Months Ended

Sep. 30, 2023

Bank-Owned Life Insurance [Abstract]

Bank-Owned Life Insurance

Note 9 – Bank-Owned Life Insurance

BOLI involves life insurance purchased by the Bank on a chosen group of employees, and the Bank is owner and beneficiary of the policies. At September 30, 2023 the Bank had $72.8 million in BOLI. BOLI is recorded at its net realizable value.

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

Note 10 – Goodwill and Other Intangible Assets

The Company’s intangible assets consist of goodwill and core deposit intangibles in connection with the acquisition of IA Bancorp, Inc. as of April 17, 2018. The initial recording of goodwill and other intangible assets requires subjective judgments concerning estimates of the fair value of the acquired assets and assumed liabilities. Goodwill is not amortized but is subject to annual tests for impairment or more often if events or circumstances indicate it may be impaired.

The Company’s core deposit intangibles are amortized on an accelerated basis using an estimated life of 10 years and in accordance with U.S. GAAP are evaluated annually for impairment. An impairment loss will be recognized if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset.

The Company believes that the fair values of its goodwill and other intangible assets were in excess of their carrying amounts and there was no impairment at September 30, 2023.

Amortization expense of the core deposit intangibles was $94,000 and $37,000 for the nine months ended September 30, 2023 and September 30, 2022, respectively. The unamortized balance of the core deposit intangibles and the amount of goodwill at September 30, 2023 was $35,000 and $5.2 million, respectively. The unamortized balance of the core deposits intangibles and the amount of goodwill at December 31, 2022 was $129,000 and $5.2 million, respectively.

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Fair Values of Financial Instruments

9 Months Ended

Sep. 30, 2023

Fair Values of Financial Instruments [Abstract]

Fair Values of Financial Instruments

Note 11 – Fair Values of Financial Instruments

Guidance on fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).

An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Assets that the Company measured at fair value on a recurring basis were as follows (In thousands):

			(Level 1)		(Level 2)
			Quoted Prices in		Significant		(Level 3)
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Total		Assets		Inputs		Inputs
As of September 30, 2023:
Securities
Debt Securities Available for Sale	$	86,172	$	-	$	86,172	$	-
Marketable Equities	$	8,272	$	8,272	$	-	$	-
Total Securities	$	94,444	$	8,272	$	86,172	$	-
As of December 31, 2022:
Securities
Debt Securities Available for Sale	$	91,715	$	-	$	91,715	$	-
Marketable Equities	$	17,686	$	17,686	$	-	$	-
Total Securities	$	109,401	$	17,686	$	91,715	$	-

There were no transfers of assets or liabilities into or out of Level 1, Level 2, or Level 3 of the fair value hierarchy during the three months ended September 30, 2023 and 2022.
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‎There were no liabilities measured at fair value on a recurring basis at September 30, 2023 or December 31, 2022.

Assets that the Company measured at fair value on a nonrecurring basis were as follows (In thousands):

			(Level 1)		(Level 2)
			Quoted Prices in		Significant		(Level 3)
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Total		Assets		Inputs		Inputs
As of September 30, 2023
Individually Evaluated	$	2,876	$	-	$	-	$	2,876
Other real estate owned	$	75	$	-	$	-	$	75
As of December 31, 2022:
Individually Evaluated	$	5,587	$	-	$	-	$	5,587
Other real estate owned	$	75	$	-	$	-	$	75

‎There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2023 or December 31, 2022.
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Note 11 – Fair Values of Financial Instruments (Continued)

The following tables present additional quantitative information as of September 30, 2023 and December 31, 2022 about assets measured at fair value on a nonrecurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value. (Dollars in thousands):

Quantitative Information about Level 3 Fair Value Measurements
		Fair Value	Valuation	Unobservable
		Estimate	Techniques	Input	Range
September 30, 2023:
Individually Evaluated Loans	$	2,876	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%
Other real estate owned	$	75	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%

		Fair Value	Valuation	Unobservable
		Estimate	Techniques	Input	Range
December 31, 2022:
Individually Evaluated Loans	$	5,587	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%
Other real estate owned	$	75	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not objectively determinable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments as of September 30, 2023 and December 31, 2022.

Cash and Cash Equivalents and Interest-Earning Time Deposits (Carried at Cost)

The carrying amounts reported in the consolidated statements of financial condition for cash and short-term instruments approximate fair values.

Securities (Carried at Fair Value)

The fair value of securities is determined by obtaining quoted market prices on nationally recognized security exchanges (Level 1) or, by matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices.

Loans Held for Sale (Lower of Cost or Market)

The fair value of loans held for sale is determined, when possible, using quoted secondary-market prices. If no such quoted prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for specific attributes of that loan. Loans held for sale are carried at the lower of cost or fair value.

Loans Receivable (Carried at Cost)

The fair values of loans, except for certain individually evaluated loans, are estimated using discounted cash flow analyses, using market rates at the date of the Statement of Financial Condition that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

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Note 11 – Fair Values of Financial Instruments (Continued)

Individually Evaluated Loans (Generally Carried at Fair Value)

Individually evaluated loans are those for which the Company has measured and recorded credit losses based on the fair value of the loan’s collateral, less estimated costs to sell. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value at September 30, 2023 and December 31, 2022 consisted of the loan balances of $7.1 million net of an allowance for credit losses of $4.2 million and $8.4 million net of an allowance for credit losses of $2.8 million, respectively.

Other Real Estate Owned (Generally Carried at Lower of Cost or Fair Value)

Real Estate Owned is generally carried at fair value less estimated costs to sell which is determined based upon independent third-party appraisals of the properties or based upon the expected proceeds from a pending sale. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

FHLB of New York Stock (Carried at Cost)

The carrying amount of restricted investment in bank stock approximates fair value and considers the limited marketability of such securities.

Accrued Interest Receivable and Payable (Carried at Cost)

The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value.

Deposits (Carried at Cost)

The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings and money market accounts1) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Debt Including Subordinated Debentures (Carried at Cost)

Fair values of debt are estimated using discounted cash flow analysis, based on quoted prices for new long-term debt with similar credit risk characteristics, terms and remaining maturity. Prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party.

Off-Balance Sheet Financial Instruments (Disclosed at Cost)

Fair values for the Company’s off-balance sheet financial instruments (lending commitments and unused lines of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. The fair value of these commitments was deemed immaterial and is not presented in the accompanying table.

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Note 11 – Fair Values of Financial Instruments (Continued)

The carrying values and estimated fair values of financial instruments were as follows as of September 30, 2023 and December 31, 2022:

		As of September 30, 2023
					Quoted Prices in Active		Significant		Significant
	Carrying				Markets for Identical Assets		Other Observable Inputs		Unobservable Inputs
	Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	251,916	$	251,916	$	251,916	$	-	$	-
Interest-earning time deposits		735		735		-		735		-
Debt securities available for sale		86,172		86,172		-		86,172		-
Equity investments		8,272		8,272		8,272		-		-
Loans held for sale		472		472		-		472		-
Loans receivable, net		3,285,727		3,088,826		-		-		3,088,826
FHLB of New York stock, at cost		31,629		31,629		-		31,629		-
Accrued interest receivable		16,175		16,175		-		16,175		-
Financial liabilities:
Deposits		2,819,556		2,813,939		1,740,300		1,073,639		-
Borrowings		622,674		615,575		-		615,575		-
Subordinated debentures		37,624		39,262		-		39,262		-
Accrued interest payable		5,735		5,735		-		5,735		-

		As of December 31, 2022
					Quoted Prices in Active		Significant		Significant
	Carrying				Markets for Identical Assets		Other Observable Inputs		Unobservable Inputs
	Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	229,359	$	229,359	$	229,359	$	-	$	-
Interest-earning time deposits		735		735		-		735		-
Debt securities available for sale		91,715		91,715		-		91,715		-
Equity investments		17,686		17,686		17,686		-		-
Loans held for sale		658		658		-		658		-
Loans receivable, net		3,045,331		2,876,925		-		-		2,876,925
FHLB of New York stock, at cost		20,113		20,113		-		20,113		-
Accrued interest receivable		13,455		13,455		-		13,455		-
Financial liabilities:
Deposits		2,811,607		2,499,978		1,713,754		786,224		-
Debt		382,261		377,227		-		377,227		-
Subordinated debentures		37,508		40,113		-		40,113		-
Accrued interest payable		3,073		3,073		-		3,073		-

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Subordinated Debt

9 Months Ended

Sep. 30, 2023

Subordinated Debt [Abstract]

Subordinated Debt

Note 12 – Subordinated debt

On July 30, 2018, the Company issued $33.5 million of fixed-to-floating rate subordinated debentures (the “Notes”) in a private placement. The Notes have a 10-year term and bore an interest at a fixed annual rate of 5.625% for the first five years of the term (the "Fixed Interest Rate Period"). On August 1, 2023, the interest rate was scheduled to adjust to a floating rate based on the three-month LIBOR plus 2.72% until redemption or maturity (the "Floating Interest Rate Period"). However LIBOR was replaced as the benchmark rate per the discussion below. The Notes are scheduled to mature on August 1, 2028. The Company will pay interest in arrears quarterly during the remaining term of the Notes. The Notes constitute an unsecured and subordinated obligation of the Company and rank junior in right of payment to any senior indebtedness and obligations to general and secured creditors. The Notes qualify as Tier 2 capital for the Company for regulatory purposes, when applicable, and the portion that the Company contributes to the Bank will qualify as Tier 1 capital for the Bank. The additional capital is used for general corporate purposes including organic growth initiatives. Subordinated debt includes associated deferred costs of $0 and $116,000 at September 30, 2023 and December 31, 2022, respectively.

The Company also has $4.1 million of mandatory redeemable trust preferred securities. The interest rate on these floating rate junior subordinated debentures adjusts quarterly, and had been equal to the three-month LIBOR plus 2.65%.

In accordance with the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) and the regulation issued by the Board of Governors of the Federal Reserve System implementing the LIBOR Act, the Company has selected the three-month CME Term SOFR as the applicable successor rate for both the Notes and the trust preferred securities. The calculation of the amount of interest payable, based on the three-month CME Term SOFR, will also include the applicable tenor spread adjustment of 0.26161% per annum as specified in the LIBOR Act.

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Lease Obligations

9 Months Ended

Sep. 30, 2023

Lease Obligations [Abstract]

Lease Obligations

Note 13 – Lease Obligations

The Company leases 25 of its offices under various operating lease agreements. The leases have remaining terms of one year to 10 years. The leases contain provisions for the payment by the Company of its pro-rata share of real estate taxes, insurance, common area maintenance and other variable expenses. The Company will allocate payments made under such leases between lease and non-lease components. Some leases contain renewal options and options to purchase the assets.

The Company has elected not to recognize a lease liability and a right of use asset for leases with a lease term of 12 or fewer months.

The following tables present certain information related to the Company’s leases (in thousands):

		Three Months Ended September 30, 2023		Three Months Ended September 30, 2022		Nine Months Ended September 30, 2023		Nine Months Ended September 30, 2022
Operating lease expense	$	878	$	964	$	2,710	$	2,804
Variable lease expense-operating leases	$	269	$	258	$	793	$	734

		At September 30, 2023		At December 31, 2022
Supplemental balance sheet information related to leases:
Operating Leases
Operating lease right-of-use assets	$	12,953	$	13,520
Current liabilities	$	812	$	3,062
Operating lease liabilities (noncurrent portion)		13,833		12,218
Imputed Interest		(1,327)		(1,421)
Total operating lease liabilities	$	13,318	$	13,859

The weighted average remaining lease term for operating leases at September 30, 2023 and December 31, 2022 was 5.95 years and 6.49 years, respectively. The weighted average discount rate for operating leases at September 30, 2023 and December 31, 2022 was 2.95 percent and 2.83 percent, respectively.

The following table summarizes the Company’s maturity of lease obligations for operating leases at September 30, 2023 and December 31, 2022 (in thousands):

Maturities of lease liabilities:
		At September 30, 2023		At December 31, 2022
		Operating Leases		Operating Leases
One year or less	$	812	$	3,062
Over one year through three years		5,468		4,766
Over three years through five years		4,341		3,496
Over five years		4,024		3,956
Gross Operating Lease Liabilities	$	14,645	$	15,280
Imputed Interest		(1,327)		(1,421)
Total Operating Lease Liabilities	$	13,318	$	13,859

 

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Subsequent Events

9 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

Note 14 – Subsequent Events

On October 18, 2023, the Board of Directors of the Company declared a cash dividend of $0.16 per share to shareholders of record of its common stock on November 3, 2023, with a payment date of November 17, 2023.

 

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Basis of Presentation (Policy)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Consolidated Financial Statement Presentation

The accompanying unaudited consolidated financial statements include the accounts of BCB Bancorp, Inc. (the “Company”) and the Company’s wholly owned subsidiaries, BCB Community Bank (the “Bank”), BCB Holding Company Investment Corporation, Special Asset REO I, LLC., and Special Asset REO II, LLC. The Company’s business is conducted principally through the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

Basis of Accounting

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and, therefore, do not necessarily include all information that would be included in audited consolidated financial statements. The information furnished reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of consolidated financial condition and results of operations. All such adjustments are of a normal recurring nature. These results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, or any other future period. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates.

These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the year ended December 31, 2022, which are included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred between December 31, 2022 and the date these consolidated financial statements were issued.

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Recent Accounting Pronouncements (Policy)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Recent Accounting Pronouncements

Note 2 - Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The amendments in this ASU defer the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective upon issuance. The FASB had previously issued 2020-04 - Facilitation of the Effects of Reference Rate Reform on Financial Reporting and related amendments in 2020 to ease the potential burden in accounting for reference rate reform. The amendments in ASU 2020-04 were elective and applied to all entities that have contracts, hedging relationships, and other transactions that reference the London Inter-bank Offer Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The Company does not expect such adoption of the new ASU to have an impact on the Company’s consolidated financial instruments.

The Company adopted ASU 2016-13 on January 1, 2023 for all financial assets measured at amortized cost and off-balance sheet credit exposures using the modified retrospective method. Results for the three and nine months ended September 30, 2023 are presented under Accounting Standards Codification 326, Financial Instruments – Credit Losses, while prior period amounts continue to be reported with previously applicable GAAP and have not been restated. Effective January 1, 2023, the Company recorded a $4.2 million decrease in allowance for credit losses on loans that is referred to as the current expected credit loss (“CECL”) methodology (previously allowance for loan losses), an elimination of $1.1 million of reserves related to acquired loans, and a $1.3 million increase related to allowance for off-balance sheet credit exposures included in other liabilities section of the consolidated statements of financial condition, which resulted in a total cumulative effect adjustment of $2.9 million and an increase to retained earnings a component of the stockholders’ equity (net of tax). Further information regarding the impact of CECL can be found in Note 7 – Loan Receivable and Allowance for Credit Losses.

Allowance for Credit Losses

The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated statement of financial condition. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the consolidated statement of financial condition in other liabilities while the provision for credit losses related to unfunded commitments is reported in other non-interest expense.

Allowance for Credit Losses on Loans Receivable

The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. Individually evaluated loans are primarily non-accrual and collateral dependent loans. Furthermore, the Company evaluates the pooling methodology at least annually to ensure that loans with similar risk characteristics are pooled appropriately. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off.

The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. The Company calculates estimated credit losses for these loan segments using quantitative models and qualitative factors. Further information on loan segmentation and the credit loss estimation is included in Note 7 – Loan Receivables and Allowance for Credit Losses.

Individually Evaluated Loans

On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan.

Allowance for Credit Losses on Off-Balance Sheet Commitments

The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated statement of financial condition and the related credit expense is recorded in other non-interest expense in the consolidated statements of income.

Allowance for Credit Losses on Available for Sale Securities

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors.  If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rate by major agencies and have a long history of no credit losses.

Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

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Equity Incentive Plans (Tables)

9 Months Ended

Sep. 30, 2023

Equity Incentive Plans [Abstract]

Summary of Status of Restricted Shares

	Number of Shares Awarded		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2023	48,150	$	14.83
Granted	52,252		15.01
Vested	(13,650)		14.60
Forfeited	-		-
Non-vested at September 30, 2023	86,752	$	14.98

	Number of Shares Awarded		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2022	26,700	$	12.89
Granted	69,000		17.05
Vested	(9,150)		13.91
Forfeited	-		-
Non-vested at September 30, 2022	86,550	$	16.19

Summary of Stock Option Activity

	Number of Option Shares		Range of Exercise Prices		Weighted Average Exercise Price
Outstanding at January 1, 2023	1,036,975	$	9.03-13.68	$	11.72
Options granted	-		-		-
Options exercised	(61,000)		9.03		9.03
Options forfeited	-		-		-
Options expired	-		-		-
Outstanding at September 30, 2023	975,975	$	10.55-13.68	$	11.89

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Net Income per Common Share (Tables)

9 Months Ended

Sep. 30, 2023

Net Income per Common Share [Abstract]

Schedule of Earnings per Share, Basic and Diluted

	For the Three Months Ended September 30,
	2023					2022
		Income	Shares		Per Share		Income	Shares		Per Share
		(Numerator)	(Denominator)		Amount		(Numerator)	(Denominator)		Amount
	(In Thousands, except per share data)
Basic earnings per share:
Income available to common stockholders	$	6,538	16,830	$	0.39	$	13,218	16,982	$	0.78
Effect of dilutive securities:
Stock options		-	24				-	374
Diluted earnings per share:
Income available to common stockholders	$	6,538	16,854	$	0.39	$	13,218	17,356	$	0.76

	For the Nine Months Ended September 30,
	2023					2022
		Income	Shares		Per Share		Income	Shares		Per Share
		(Numerator)	(Denominator)		Amount		(Numerator)	(Denominator)		Amount
	(In Thousands, except per share data)
Basic earnings per share:
Income available to common stockholders	$	22,901	16,868	$	1.36	$	32,883	16,986	$	1.94
Effect of dilutive securities:
Stock options		-	83				-	383
Diluted earnings per share:
Income available to common stockholders	$	22,901	16,951	$	1.35	$	32,883	17,369	$	1.89

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Securities (Tables)

9 Months Ended

Sep. 30, 2023

Securities [Abstract]

Summary of Disaggregated Net Income on Equity Securities

	For the three months ended September 30,				For the nine months ended September 30,
(In Thousands)	2023		2022		2023		2022
Net losses recognized during the period on equity securities held at the reporting date	$	(436)	$	(559)	$	(4,157)	$	(5,487)
Net losses recognized during the period on equity securities sold during the period		(58)		-		(233)		(59)
Realized and unrealized losses on equity investments during the reporting period	$	(494)	$	(559)	$	(4,390)	$	(5,546)

Amortized Cost and Gross Unrealized Gains and Losses on Securities Available for Sale

	September 30, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
More than one to five years	$	708	$	-	$	41	$	667
More than five to ten years		4,388		-		381		4,007
More than ten years		33,604		-		4,613		28,991
Sub-total:		38,700		-		5,035		33,665
Corporate Debt securities:
More than one to five years		6,000		-		115		5,885
More than five to ten years		53,564		-		6,942		46,622
Sub-total:		59,564		-		7,057		52,507
Total securities	$	98,264	$	-	$	12,092	$	86,172

	December 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
More than five to ten years		5,445		-		350		5,095
More than ten years		23,210		-		3,435		19,775
Sub-total:		28,655		-		3,785		24,870
Corporate Debt securities:
Due within one year		7,321		-		91		7,230
More than five to ten years		59,629		-		4,005		55,624
Sub-total:		66,950		-		4,096		62,854
Municipal obligations:
Due after ten years		3,997		-		6		3,991
Sub-total:		3,997		-		6		3,991
Total Debt Securities Available for Sale	$	99,602	$	-	$	7,887	$	91,715

Available for Sale Securities, Continuous Unrealized Loss Position, Fair Value

	12 Months or Less				More than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
September 30, 2023
Residential Mortgage-backed securities	$	11,987	$	489	$	21,677	$	4,546	$	33,664	$	5,035
Corporate Debt securities		22,980		2,506		28,228		4,551		51,208		7,057
	$	34,967	$	2,995	$	49,905	$	9,097	$	84,872	$	12,092
December 31, 2022
Residential Mortgage-backed securities	$	17,362	$	2,022	$	7,508	$	1,763	$	24,870	$	3,785
Corporate Debt Securities		51,607		3,199		9,948		897		61,555		4,096
Municipal Obligations		3,991		6		-		-		3,991		6
	$	72,960	$	5,227	$	17,456	$	2,660	$	90,416	$	7,887

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Loans Receivable and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Loans Receivable and Allowance for Credit Losses [Abstract]

Recorded Investment in Loans Receivable

	September 30, 2023		December 31, 2022
		(In Thousands)
Residential one-to-four family	$	251,845	$	250,123
Commercial and multi-family		2,444,887		2,345,229
Construction		185,202		144,931
Commercial business(1)		370,512		282,007
Home equity(2)		66,046		56,888
Consumer		3,647		3,240
		3,322,139		3,082,418
Less:
Deferred loan fees, net		(4,498)		(4,714)
Allowance for credit losses(3)		(31,914)		(32,373)
Total Loans, net	$	3,285,727	$	3,045,331

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

(3) The Company adopted ASU 2016-13 on January 1, 2023 with a modified retrospective approach. Accordingly, at September 30, 2023, the allowance for credit losses was determined in accordance with ASC 326, “Financial Instruments-Credit Losses”.

Allowance for Credit Losses

The following table sets forth the activity in the Company’s allowance for credit losses for the three and nine months ended September 30, 2023, and the related portion of the allowances for credit losses that is allocated to each loan class, as of September 30, 2023 (in thousands):

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)		Home Equity (2)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance, July 1, 2023	$	2,453	$	15,045	$	4,090	$	7,864	$	722	$	31		-	$	30,205
Charge-offs:		-		-		-		(515)				-		-		(515)
Recoveries:		14		-		-		5		-		-		-		19
Provision (benefit):		(23)		(595)		573		2,297		(54)		7		-		2,205
Ending Balance, September 30, 2023		2,444		14,450		4,663		9,651		668		38		-		31,914
Ending Balance attributable to loans:
Individually evaluated		-		-		608		2,164		-		-		-		2,772
Collectively evaluated		2,444		14,450		4,055		7,487		668		38		-		29,142
Ending Balance, September 30, 2023		2,444		14,450		4,663		9,651		668		38		-		31,914
Loans Receivables:
Individually evaluated		355		23,843		4,931		6,527		212		-		-		35,868
Collectively evaluated		251,490		2,421,044		180,271		363,985		65,834		3,647		-		3,286,271
Total Gross Loans:	$	251,845	$	2,444,887	$	185,202	$	370,512	$	66,046	$	3,647	$	-	$	3,322,139
(1) Includes business lines of credit.
(2) Includes home equity lines of credit.

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)			Home Equity (2)	Consumer		Unallocated		Total
Allowance for credit losses:
Ending Balance December 31, 2022		2,474		21,749		2,094		5,367		485		24		180		32,373
Effect of adopting ASU No. 2016-13 ("CECL")		144		(7,123)		1,387		1,418		182		7		(180)		(4,165)
Beginning Balance, January 1, 2023	$	2,618	$	14,626	$	3,481	$	6,785	$	667	$	31	$	-	$	28,208
Charge-offs:		-		-		-		(555)		-		-		-		(555)
Recoveries:		38		-		-		30		16		-		-		84
Provision (benefit):		(212)		(176)		1,182		3,391		(15)		7		-		4,177
Ending Balance, September 30, 2023	$	2,444	$	14,450	$	4,663	$	9,651	$	668	$	38	$	-	$	31,914

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

‎

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table sets forth the activity in the Company’s allowance for credit losses for the three and nine months ended September 30, 2022, and the related portion of the allowances for credit losses that is allocated to each loan class, as of September 30, 2022 (in thousands): 

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)		Home Equity (2)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance, July 1, 2022	$	2,565	$	21,157	$	2,348	$	7,639	$	387	$	17	$	-	$	34,113
Charge-offs:		-		-		-		(931)		-		-		-		(931)
Recovery:		7		-		-		2		4		-		-		13
Provision (benefit):		(374)		390		96		(993)		75		3		803		-
Ending Balance September 30, 2022	$	2,198	$	21,547	$	2,444	$	5,717	$	466	$	20	$	803	$	33,195
Ending Balance attributable to loans:
Individually evaluated	$	204	$	-	$	519	$	3,509	$	6	$	-	$	-	$	4,238
Collectively evaluated		1,994		21,547		1,925		2,208		460		20		803		28,957
Ending Balance September 30, 2022	$	2,198	$	21,547	$	2,444	$	5,717	$	466	$	20	$	803	$	33,195
Loans Receivables:
Individually evaluated	$	4,914	$	27,090	$	3,180	$	4,607	$	733	$	-	$	-	$	40,524
Collectively evaluated		237,324		2,137,230		149,923		201,054		55,331		2,545		-		2,783,407
Total Gross Loans:	$	242,238	$	2,164,320	$	153,103	$	205,661	$	56,064	$	2,545	$	-	$	2,823,931

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

	Residential			Commercial & Multi-family	Construction		Commercial Business (1)			Home Equity (2)	Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance, January 1, 2022	$	4,094	$	22,065	$	2,231	$	8,000	$	533	$	14	$	182	$	37,119
Charge-offs:		-		-		-		(1,703)		-		-		-		(1,703)
Recovery:		9		-		-		138		9		198		-		354
Provision (benefit):		(1,905)		(518)		213		(718)		(76)		(192)		621		(2,575)
Ending Balance, September 30, 2022	$	2,198	$	21,547	$	2,444	$	5,717	$	466	$	20	$	803	$	33,195

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

The following table sets forth the amount recorded in loans receivable at December 31, 2022. The table also details the amount of total loans receivable that are evaluated individually, and collectively, for impairment and the related portion of the allowance for credit losses that is allocated to each loan class (in thousands):

		Residential		Commercial & Multi-family		Construction		Commercial Business (1)		Home Equity (2)		Consumer		Unallocated		Total
Allowance for credit losses:
Ending Balance attributable to loans:
Individually evaluated	$	196	$	-	$	518	$	2,066	$	4	$	-	$	-	$	2,784
Collectively evaluated		2,278		21,749		1,576		3,301		481		24		180		29,589
Ending Balance, December 31, 2022	$	2,474	$	21,749	$	2,094	$	5,367	$	485	$	24	$	180	$	32,373
Loans Receivables:
Individually evaluated	$	5,147	$	15,397	$	3,180	$	3,821	$	727	$	-	$	-	$	28,272
Collectively evaluated		244,976		2,329,832		141,751		278,186		56,161		3,240		-		3,054,146
Total Gross Loans:	$	250,123	$	2,345,229	$	144,931	$	282,007	$	56,888	$	3,240	$	-	$	3,082,418

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

Allowance for Credit Losses on Off-Balance Sheet Exposures

		Three Months Ended September 30, 2023		Nine Months Ended September 30, 2023
		(In thousands)		(In thousands)
Allowance for Credit Losses:
Beginning Balance	$	254	$	-
Impact of adopting ASU No. 2016-13 ("CECL") effective January 1, 2022		-		1,266
Provision (benefit)		148		(864)
Balance at September 30, 2023	$	402	$	402

Delinquency Status of Total Loans

The following table sets forth the delinquency status of total loans receivable as of September 30, 2023:

													Loans Receivable
	30-59 Days		60-90 Days		Greater Than		Total Past				Total Loans		>90 Days
	Past Due		Past Due		90 Days		Due		Current		Receivable		and Accruing
		(In Thousands)
Residential one-to-four family	$	50	$	856	$	178	$	1,084	$	250,761	$	251,845	$	-
Commercial and multi-family		12,195		6,378		3,267		21,840		2,423,047		2,444,887		-
Construction		-		2,045		2,886		4,931		180,271		185,202		-
Commercial business(1)		2,056		3,095		798		5,949		364,563		370,512		-
Home equity(2)		472		164		-		636		65,410		66,046		-
Consumer		-		1		-		1		3,646		3,647		-
Total	$	14,773	$	12,539	$	7,129	$	34,441	$	3,287,698	$	3,322,139	$	-

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

The following table sets forth the delinquency status of total loans receivable at December 31, 2022:

													Loans Receivable
	30-59 Days		60-90 Days		Greater Than		Total Past				Total Loans		>90 Days
	Past Due		Past Due		90 Days		Due		Current		Receivable		and Accruing
		(In Thousands)
Residential one-to-four family	$	253	$	314	$	-	$	567	$	249,556	$	250,123	$	-
Commercial and multi-family		2,163		428		-		2,591		2,342,638		2,345,229		-
Construction		-		-		3,180		3,180		141,751		144,931		-
Commercial business(1)		190		1,115		1,086		2,391		279,616		282,007		-
Home equity(2)		699		-		-		699		56,189		56,888		-
Consumer		-		-		-		-		3,240		3,240		-
Total	$	3,305	$	1,857	$	4,266	$	9,428	$	3,072,990	$	3,082,418	$	-

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

Non-Accruing Loans

		As of September 30, 2023		As of December 31, 2022
		(In Thousands)		(In Thousands)
Non-Accruing Loans:
Residential one-to-four family	$	178	$	243
Commercial and multi-family		3,267		346
Construction		2,886		3,180
Commercial business(1)		1,600		1,340
Total	$	7,931	$	5,109

_________

(1) Includes business lines of credit.

Loan Portfolio by Pass Rating

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating at September 30, 2023 and gross charge-offs for the nine months ended September 30, 2023.

Loans by Year of Origination at September 30, 2023
		2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
Residential one-to-four family
Pass	$	16,805	$	54,608	$	38,402	$	31,622	$	12,184	$	96,050	$	-	$	-	$	249,671
Special Mention		-		496		91		-		-		91		-		-		678
Substandard		-		-		1,318		-		-		178		-		-		1,496
Total one-to-four family	$	16,805	$	55,104	$	39,811	$	31,622	$	12,184	$	96,319	$	-	$	-	$	251,845
Commercial and multi-family
Pass	$	219,180	$	822,626	$	226,073	$	217,855	$	52,614	$	848,504	$	1,922	$	-	$	2,388,774
Special Mention		-		-		-		-		-		26,690		-		-		26,690
Substandard		-		3,071		4,079		3,575		-		18,698		-		-		29,423
Total Commercial and multi-family	$	219,180	$	825,697	$	230,152	$	221,430	$	52,614	$	893,892	$	1,922	$	-	$	2,444,887
Construction
Pass	$	15,108	$	75,672	$	57,434	$	20,499	$	-	$	5,878	$	5,681	$	-	$	180,272
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		1,458		-		586		-		2,886		-		-		4,930
Total Construction	$	15,108	$	77,130	$	57,434	$	21,085	$	-	$	8,764	$	5,681	$	-	$	185,202
Commercial business
Pass	$	2,553	$	305	$	3,314	$	4,333	$	7,143	$	36,487	$	304,133	$	-	$	358,268
Special Mention		-		-		-		-		369		1,666		3,582		-		5,617
Substandard		-		-		-		-		-		3,597		3,030		-		6,627
Total Commercial business	$	2,553	$	305	$	3,314	$	4,333	$	7,512	$	41,750	$	310,745	$	-	$	370,512
Home equity
Pass	$	4,189	$	1,704	$	565	$	782	$	1,306	$	6,601	$	50,074	$	496	$	65,717
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		117		212		329
Total Home equity	$	4,189	$	1,704	$	565	$	782	$	1,306	$	6,601	$	50,191	$	708	$	66,046
Consumer
Pass	$	1,463	$	493	$	1,524	$	112	$	47	$	-	$	8	$	-	$	3,647
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total Consumer	$	1,463	$	493	$	1,524	$	112	$	47	$	-	$	8	$	-	$	3,647
Total Loans	$	259,298	$	960,433	$	332,800	$	279,364	$	73,663	$	1,047,326	$	368,547	$	708	$	3,322,139
Gross charge-offs	$	250	$	305	$	-	$	-	$	-	$	-	$	-	$	-	$	555

‎

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating at December 31, 2022.

Loans by Year of Origination at December 31, 2022
		2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
Residential one-to-four family
Pass	$	56,893	$	40,465	$	33,019	$	12,959	$	23,918	$	82,144	$	-	$	-	$	249,398
Special Mention		-		-		-		-		-		303		-		-		303
Substandard		-		179		-		-		-		243		-		-		422
Total one-to-four family	$	56,893	$	40,644	$	33,019	$	12,959	$	23,918	$	82,690	$	-	$	-	$	250,123
Commercial and multi-family
Pass	$	854,299	$	234,441	$	235,830	$	55,752	$	312,353	$	628,191	$	-	$	-	$	2,320,866
Special Mention		-		-		-		-		-		14,183		-		-		14,183
Substandard		599		-		-		-		8,000		1,581		-		-		10,180
Total Commercial and multi-family	$	854,898	$	234,441	$	235,830	$	55,752	$	320,353	$	643,955	$	-	$	-	$	2,345,229
Construction
Pass	$	51,783	$	58,827	$	17,518	$	-	$	1,794	$	4,031	$	7,798	$	-	$	141,751
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		3,180		-		-		-		3,180
Total Construction	$	51,783	$	58,827	$	17,518	$	-	$	4,974	$	4,031	$	7,798	$	-	$	144,931
Commercial business
Pass	$	70	$	5,331	$	5,470	$	8,070	$	22,940	$	19,487	$	212,402	$	-	$	273,770
Special Mention		-		-		-		431		-		1,600		2,385		-		4,416
Substandard		-		-		-		-		2,686		758		377		-		3,821
Total Commercial business	$	70	$	5,331	$	5,470	$	8,501	$	25,626	$	21,845	$	215,164	$	-	$	282,007
Home equity
Pass	$	1,541	$	643	$	830	$	1,390	$	1,465	$	6,437	$	43,857	$	513	$	56,676
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		212		212
Total Home equity	$	1,541	$	643	$	830	$	1,390	$	1,465	$	6,437	$	43,857	$	725	$	56,888
Consumer
Pass	$	994	$	2,034	$	139	$	67	$	-	$	-	$	6	$	-	$	3,240
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total Consumer	$	994	$	2,034	$	139	$	67	$	-	$	-	$	6	$	-	$	3,240
Total Loans	$	966,179	$	341,920	$	292,806	$	78,669	$	376,336	$	758,958	$	266,825	$	725	$	3,082,418

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Fair Values of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Fair Values of Financial Instruments [Abstract]

Fair Value Measurements, Recurring

			(Level 1)		(Level 2)
			Quoted Prices in		Significant		(Level 3)
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Total		Assets		Inputs		Inputs
As of September 30, 2023:
Securities
Debt Securities Available for Sale	$	86,172	$	-	$	86,172	$	-
Marketable Equities	$	8,272	$	8,272	$	-	$	-
Total Securities	$	94,444	$	8,272	$	86,172	$	-
As of December 31, 2022:
Securities
Debt Securities Available for Sale	$	91,715	$	-	$	91,715	$	-
Marketable Equities	$	17,686	$	17,686	$	-	$	-
Total Securities	$	109,401	$	17,686	$	91,715	$	-

Fair Value Measurements, Nonrecurring

			(Level 1)		(Level 2)
			Quoted Prices in		Significant		(Level 3)
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Total		Assets		Inputs		Inputs
As of September 30, 2023
Individually Evaluated	$	2,876	$	-	$	-	$	2,876
Other real estate owned	$	75	$	-	$	-	$	75
As of December 31, 2022:
Individually Evaluated	$	5,587	$	-	$	-	$	5,587
Other real estate owned	$	75	$	-	$	-	$	75

Quantitative Information About Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements
		Fair Value	Valuation	Unobservable
		Estimate	Techniques	Input	Range
September 30, 2023:
Individually Evaluated Loans	$	2,876	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%
Other real estate owned	$	75	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%

		Fair Value	Valuation	Unobservable
		Estimate	Techniques	Input	Range
December 31, 2022:
Individually Evaluated Loans	$	5,587	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%
Other real estate owned	$	75	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-10%

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not objectively determinable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Carrying Values and Estimated Fair Values of Financial Instruments

		As of September 30, 2023
					Quoted Prices in Active		Significant		Significant
	Carrying				Markets for Identical Assets		Other Observable Inputs		Unobservable Inputs
	Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	251,916	$	251,916	$	251,916	$	-	$	-
Interest-earning time deposits		735		735		-		735		-
Debt securities available for sale		86,172		86,172		-		86,172		-
Equity investments		8,272		8,272		8,272		-		-
Loans held for sale		472		472		-		472		-
Loans receivable, net		3,285,727		3,088,826		-		-		3,088,826
FHLB of New York stock, at cost		31,629		31,629		-		31,629		-
Accrued interest receivable		16,175		16,175		-		16,175		-
Financial liabilities:
Deposits		2,819,556		2,813,939		1,740,300		1,073,639		-
Borrowings		622,674		615,575		-		615,575		-
Subordinated debentures		37,624		39,262		-		39,262		-
Accrued interest payable		5,735		5,735		-		5,735		-

		As of December 31, 2022
					Quoted Prices in Active		Significant		Significant
	Carrying				Markets for Identical Assets		Other Observable Inputs		Unobservable Inputs
	Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	229,359	$	229,359	$	229,359	$	-	$	-
Interest-earning time deposits		735		735		-		735		-
Debt securities available for sale		91,715		91,715		-		91,715		-
Equity investments		17,686		17,686		17,686		-		-
Loans held for sale		658		658		-		658		-
Loans receivable, net		3,045,331		2,876,925		-		-		2,876,925
FHLB of New York stock, at cost		20,113		20,113		-		20,113		-
Accrued interest receivable		13,455		13,455		-		13,455		-
Financial liabilities:
Deposits		2,811,607		2,499,978		1,713,754		786,224		-
Debt		382,261		377,227		-		377,227		-
Subordinated debentures		37,508		40,113		-		40,113		-
Accrued interest payable		3,073		3,073		-		3,073		-

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Lease Obligations (Tables)

9 Months Ended

Sep. 30, 2023

Lease Obligations [Abstract]

Schedule of Lease Information

		Three Months Ended September 30, 2023		Three Months Ended September 30, 2022		Nine Months Ended September 30, 2023		Nine Months Ended September 30, 2022
Operating lease expense	$	878	$	964	$	2,710	$	2,804
Variable lease expense-operating leases	$	269	$	258	$	793	$	734

		At September 30, 2023		At December 31, 2022
Supplemental balance sheet information related to leases:
Operating Leases
Operating lease right-of-use assets	$	12,953	$	13,520
Current liabilities	$	812	$	3,062
Operating lease liabilities (noncurrent portion)		13,833		12,218
Imputed Interest		(1,327)		(1,421)
Total operating lease liabilities	$	13,318	$	13,859

Summary of Maturity of Lease Obligations for Operating Leases

Maturities of lease liabilities:
		At September 30, 2023		At December 31, 2022
		Operating Leases		Operating Leases
One year or less	$	812	$	3,062
Over one year through three years		5,468		4,766
Over three years through five years		4,341		3,496
Over five years		4,024		3,956
Gross Operating Lease Liabilities	$	14,645	$	15,280
Imputed Interest		(1,327)		(1,421)
Total Operating Lease Liabilities	$	13,318	$	13,859

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Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses	$ 31,914	$ 30,205	$ 32,373	$ 33,195	$ 34,113	$ 37,119
Allowance for off balance sheet credit exposure	402	254
Stockholders’ equity	$ 303,636	$ 299,623	291,254	$ 282,682	$ 271,637	$ 274,024
Effect of Adopting ASU No. 2016-13 ("CECL") [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses			(4,165)
Reserve for loans acquired			(1,100)
Allowance for off balance sheet credit exposure			1,266
Stockholders’ equity			$ 2,870

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Equity Incentive Plans (Narrative) (Details) - USD ($)					9 Months Ended
	Jun. 30, 2023	Jan. 31, 2023	Sep. 30, 2022	Jan. 12, 2022	Sep. 30, 2023	Sep. 30, 2022	Apr. 27, 2023
Defined Benefit Plan Disclosure [Line Items]
Expected future expenses relating to non-vested restricted shares					$ 960,000
Expected future compensation expense, weighted average period for recognition					2 years 3 months
Stock option expense					$ 99,000	$ 180,000
Restricted stock expense					$ 303,000	$ 278,000
Options [Member]
Defined Benefit Plan Disclosure [Line Items]
Shares underlying unexercised options					175,080
Expected future compensation expense, unexercised options					$ 302,000
Expected future compensation expense, weighted average period for recognition					3 years 1 month 13 days
Options exercisable - number of option shares					800,895
2023 Equity Incentive Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Shares authorized for issuance							1,000,000
Directors [Member] | Restricted Stock [Member]
Defined Benefit Plan Disclosure [Line Items]
Restricted stock issued		27,000
Vesting period		4 years
Directors [Member] | 2018 Equity Incentive Plan [Member] | Restricted Stock [Member]
Defined Benefit Plan Disclosure [Line Items]
Restricted stock issued				33,000
Vesting period				4 years
Executive Officers [Member] | 2018 Equity Incentive Plan [Member] | Restricted Stock [Member]
Defined Benefit Plan Disclosure [Line Items]
Restricted stock issued			36,000
Director And Officer [Member] | Restricted Stock [Member]
Defined Benefit Plan Disclosure [Line Items]
Restricted stock issued	25,252

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Equity Incentive Plans (Summary of Status of Restricted Shares) (Details) - $ / shares	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Equity Incentive Plans [Abstract]
Number of Shares Awarded, Non-vested at beginning of period	48,150	26,700
Number of Shares Awarded, Granted	52,252	69,000
Number of Shares Awarded, Vested	(13,650)	(9,150)
Number of Shares Awarded, Forfeited
Number of Shares Awarded, Non-vested at end of period	86,752	86,550
Weighted Average Grant Date Fair Value, Non-vested at beginning of period	$ 14.83	$ 12.89
Weighted Average Grant Date Fair Value, Granted	15.01	17.05
Weighted Average Grant Date Fair Value, Vested	14.60	13.91
Weighted Average Grant Date Fair Value, Forfeited
Weighted Average Grant Date Fair Value, Non-vested at end of period	$ 14.98	$ 16.19

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Equity Incentive Plans (Summary of Stock Option Activity) (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Equity Incentive Plans [Abstract]
Outstanding, Beginning Balance - Number of Options	1,036,975
Options Granted - Number of Options
Options Exercised - Number of Options	(61,000)
Options Forfeited - Number of Options
Options Expired - Number of Options
Outstanding, Ending Balance - Number of Options	975,975	1,036,975
Outstanding, Range of Exercise Price, Lower Range Limit (per share)	$ 10.55	$ 9.03
Outstanding, Range of Exercise Price, Upper Range Limit (per share)	13.68	13.68
Options Granted, Exercise Price
Options Forfeited - Exercise Price
Options expired - Exercise prices
Outstanding Number of Options, Beginning Balance - Weighted Average Exercise Price	11.72
Number of Options Granted - Weighted Average Exercise Price
Number of Options, Exercised - Weighted Average Exercise Price	9.03
Number of Options Forfeited - Weighted Average Exercise Price
Number of Options Expired - Weighted Average Exercise Price
Outstanding Number of Options, Ending Balance - Weighted Average Exercise Price	$ 11.89	$ 11.72

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Net Income per Common Share (Narrative) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Income per Common Share [Abstract]
Anti-dilutive outstanding options	0	0	0	0

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Net Income per Common Share (Schedule of Earnings per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Income per Common Share [Abstract]
Basic earnings per share: Income available to common stockholders	$ 6,538	$ 13,218	$ 22,901	$ 32,883
Diluted earnings per share: Income available to common stockholders	$ 6,538	$ 13,218	$ 22,901	$ 32,883
Basic earnings per share: Income available to common stockholders, Shares	16,830	16,982	16,868	16,986
Effect of dilutive securities: Stock options: Shares	24	374	83	383
Diluted earnings per share: Income available to common stockholders, Shares	16,854	17,356	16,951	17,369
Basic earnings per share: Income available to common stockholders, Per share amount	$ 0.39	$ 0.78	$ 1.36	$ 1.94
Diluted earnings per share: Income available to common stockholders, Per share amount	$ 0.39	$ 0.76	$ 1.35	$ 1.89

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Securities (Summary of Disaggregated Net Income on Equity Securities) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Securities [Abstract]
Net losses recognized during the period on equity securities held at the reporting date	$ (436)	$ (559)	$ (4,157)	$ (5,487)
Net losses recognized during the period on equity securities sold during the period	(58)		(233)	(59)
Realized and unrealized losses on equity investments during the reporting period	$ (494)	$ (559)	$ (4,390)	$ (5,546)

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Securities (Amortized Cost and Gross Unrealized Gains and Losses on Securities Available for Sale) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities [Line Items]
Debt Securities, Amortized Cost	$ 98,264	$ 99,602
Debt securities: Gross Unrealized Losses	12,092	7,887
Debt securities: Fair Value	86,172	91,715
Residential Mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Debt securities, More than one to five years, Amortized Cost	708
Debt securities, More than five to ten years, Amortized Cost	4,388	5,445
Debt securities, More than ten years, Amortized Cost	33,604	23,210
Debt Securities, Amortized Cost	38,700	28,655
Debt securities: More than one to five years, Gross Unrealized Losses	41
Debt securities: More than five to ten years, Gross Unrealized Losses	381	350
Debt securities: More than ten years, Gross Unrealized Losses	4,613	3,435
Debt securities: Gross Unrealized Losses	5,035	3,785
Debt securities: More than one to five years, Fair Value	667
Debt securities: More than five to ten years, Fair Value	4,007	5,095
Debt securities: More than ten years, Fair Value	28,991	19,775
Debt securities: Fair Value	33,665	24,870
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Debt securities, Due within one year, Amortized Cost		7,321
Debt securities, More than one to five years, Amortized Cost	6,000
Debt securities, More than five to ten years, Amortized Cost	53,564	59,629
Debt Securities, Amortized Cost	59,564	66,950
Debt securities: Due within one year, Gross Unrealized Losses		91
Debt securities: More than one to five years, Gross Unrealized Losses	115
Debt securities: More than five to ten years, Gross Unrealized Losses	6,942	4,005
Debt securities: Gross Unrealized Losses	7,057	4,096
Debt securities: Due within one year, Fair Value		7,230
Debt securities: More than one to five years, Fair Value	5,885
Debt securities: More than five to ten years, Fair Value	46,622	55,624
Debt securities: Fair Value	$ 52,507	62,854
Municipal Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Debt securities, More than ten years, Amortized Cost		3,997
Debt Securities, Amortized Cost		3,997
Debt securities: More than ten years, Gross Unrealized Losses		6
Debt securities: Gross Unrealized Losses		6
Debt securities: More than ten years, Fair Value		3,991
Debt securities: Fair Value		$ 3,991

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Securities (Available for Sale Securities, Continuous Unrealized Loss Position, Fair Value) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities [Line Items]
Debt Securities, 12 Months or Less - Fair Value	$ 34,967	$ 72,960
Debt Securities, More than 12 Months - Fair Value	49,905	17,456
Debt Securities - Total Fair Value	84,872	90,416
Debt Securities, 12 Months or Less - Unrealized Losses	2,995	5,227
Debt Securities, More than 12 Months - Unrealized Losses	9,097	2,660
Debt Securities - Total Unrealized Losses	12,092	7,887
Residential Mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Debt Securities, 12 Months or Less - Fair Value	11,987	17,362
Debt Securities, More than 12 Months - Fair Value	21,677	7,508
Debt Securities - Total Fair Value	33,664	24,870
Debt Securities, 12 Months or Less - Unrealized Losses	489	2,022
Debt Securities, More than 12 Months - Unrealized Losses	4,546	1,763
Debt Securities - Total Unrealized Losses	5,035	3,785
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Debt Securities, 12 Months or Less - Fair Value	22,980	51,607
Debt Securities, More than 12 Months - Fair Value	28,228	9,948
Debt Securities - Total Fair Value	51,208	61,555
Debt Securities, 12 Months or Less - Unrealized Losses	2,506	3,199
Debt Securities, More than 12 Months - Unrealized Losses	4,551	897
Debt Securities - Total Unrealized Losses	$ 7,057	4,096
Municipal Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Debt Securities, 12 Months or Less - Fair Value		3,991
Debt Securities - Total Fair Value		3,991
Debt Securities, 12 Months or Less - Unrealized Losses		6
Debt Securities - Total Unrealized Losses		$ 6

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Loans Receivable and Allowance for Credit Losses (Narrative) (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans, interest income lost	$ 1,500,000	$ 1,000,000.0
Loans Receivable within 90 Days	7,931,000	5,109,000
Loans receivable more than 90 days past due and still accruing interest	0	0
Less Than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable within 90 Days	$ 303,000	$ 843,000

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Loans Receivable and Allowance for Credit Losses (Recorded Investment in Loans Receivable) (Details) - USD ($) $ in Thousands		Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross		$ 3,322,139	$ 3,082,418	$ 2,823,931
Deferred loan fees, net		(4,498)	(4,714)
Allowance for credit losses		(31,914)	(32,373)
Total Loans, net	[1]	3,285,727	3,045,331
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross		251,845	250,123	242,238
Commercial & Multi-family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross		2,444,887	2,345,229	2,164,320
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross		185,202	144,931	153,103
Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross		370,512	282,007	205,661
Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross		66,046	56,888	56,064
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross		$ 3,647	$ 3,240	$ 2,545

[1] The Company adopted ASU 2016-13 as of January 1, 2023. Prior year periods have not been restated.

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Loans Receivable and Allowance for Credit Losses (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance		$ 30,205	$ 34,113	$ 32,373	$ 37,119
Allowance for credit losses: Charge-offs		(515)	(931)	(555)	(1,703)
Allowance for credit losses: Recoveries		19	13	84	354
Allowance for credit losses: Provision (credit)	[1]	2,205		4,177	(2,575)
Allowance for credit losses: Ending balance: individually evaluated		2,772	4,238	2,772	4,238	$ 2,784
Allowance for credit losses: Ending balance: collectively evaluated		29,142	28,957	29,142	28,957	29,589
Allowance for credit losses: Ending Balance		31,914	33,195	31,914	33,195
Loans receivables: Ending balance: individually evaluated		35,868	40,524	35,868	40,524	28,272
Loans receivables: Ending balance: collectively evaluated		3,286,271	2,783,407	3,286,271	2,783,407	3,054,146
Loans receivables: Ending balance		3,322,139	2,823,931	3,322,139	2,823,931	3,082,418
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance		2,453	2,565	2,474	4,094
Allowance for credit losses: Charge-offs
Allowance for credit losses: Recoveries		14	7	38	9
Allowance for credit losses: Provision (credit)		(23)	(374)	(212)	(1,905)
Allowance for credit losses: Ending balance: individually evaluated			204		204	196
Allowance for credit losses: Ending balance: collectively evaluated		2,444	1,994	2,444	1,994	2,278
Allowance for credit losses: Ending Balance		2,444	2,198	2,444	2,198
Loans receivables: Ending balance: individually evaluated		355	4,914	355	4,914	5,147
Loans receivables: Ending balance: collectively evaluated		251,490	237,324	251,490	237,324	244,976
Loans receivables: Ending balance		251,845	242,238	251,845	242,238	250,123
Commercial & Multi-family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance		15,045	21,157	21,749	22,065
Allowance for credit losses: Charge-offs
Allowance for credit losses: Recoveries
Allowance for credit losses: Provision (credit)		(595)	390	(176)	(518)
Allowance for credit losses: Ending balance: individually evaluated
Allowance for credit losses: Ending balance: collectively evaluated		14,450	21,547	14,450	21,547	21,749
Allowance for credit losses: Ending Balance		14,450	21,547	14,450	21,547
Loans receivables: Ending balance: individually evaluated		23,843	27,090	23,843	27,090	15,397
Loans receivables: Ending balance: collectively evaluated		2,421,044	2,137,230	2,421,044	2,137,230	2,329,832
Loans receivables: Ending balance		2,444,887	2,164,320	2,444,887	2,164,320	2,345,229
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance		4,090	2,348	2,094	2,231
Allowance for credit losses: Charge-offs
Allowance for credit losses: Recoveries
Allowance for credit losses: Provision (credit)		573	96	1,182	213
Allowance for credit losses: Ending balance: individually evaluated		608	519	608	519	518
Allowance for credit losses: Ending balance: collectively evaluated		4,055	1,925	4,055	1,925	1,576
Allowance for credit losses: Ending Balance		4,663	2,444	4,663	2,444
Loans receivables: Ending balance: individually evaluated		4,931	3,180	4,931	3,180	3,180
Loans receivables: Ending balance: collectively evaluated		180,271	149,923	180,271	149,923	141,751
Loans receivables: Ending balance		185,202	153,103	185,202	153,103	144,931
Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance		7,864	7,639	5,367	8,000
Allowance for credit losses: Charge-offs		(515)	(931)	(555)	(1,703)
Allowance for credit losses: Recoveries		5	2	30	138
Allowance for credit losses: Provision (credit)		2,297	(993)	3,391	(718)
Allowance for credit losses: Ending balance: individually evaluated		2,164	3,509	2,164	3,509	2,066
Allowance for credit losses: Ending balance: collectively evaluated		7,487	2,208	7,487	2,208	3,301
Allowance for credit losses: Ending Balance		9,651	5,717	9,651	5,717
Loans receivables: Ending balance: individually evaluated		6,527	4,607	6,527	4,607	3,821
Loans receivables: Ending balance: collectively evaluated		363,985	201,054	363,985	201,054	278,186
Loans receivables: Ending balance		370,512	205,661	370,512	205,661	282,007
Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance		722	387	485	533
Allowance for credit losses: Charge-offs
Allowance for credit losses: Recoveries			4	16	9
Allowance for credit losses: Provision (credit)		(54)	75	(15)	(76)
Allowance for credit losses: Ending balance: individually evaluated			6		6	4
Allowance for credit losses: Ending balance: collectively evaluated		668	460	668	460	481
Allowance for credit losses: Ending Balance		668	466	668	466
Loans receivables: Ending balance: individually evaluated		212	733	212	733	727
Loans receivables: Ending balance: collectively evaluated		65,834	55,331	65,834	55,331	56,161
Loans receivables: Ending balance		66,046	56,064	66,046	56,064	56,888
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance		31	17	24	14
Allowance for credit losses: Charge-offs
Allowance for credit losses: Recoveries					198
Allowance for credit losses: Provision (credit)		7	3	7	(192)
Allowance for credit losses: Ending balance: individually evaluated
Allowance for credit losses: Ending balance: collectively evaluated		38	20	38	20	24
Allowance for credit losses: Ending Balance		38	20	38	20
Loans receivables: Ending balance: individually evaluated
Loans receivables: Ending balance: collectively evaluated		3,647	2,545	3,647	2,545	3,240
Loans receivables: Ending balance		3,647	2,545	3,647	2,545	3,240
Unallocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				180	182
Allowance for credit losses: Charge-offs
Allowance for credit losses: Recoveries
Allowance for credit losses: Provision (credit)			803		621
Allowance for credit losses: Ending balance: individually evaluated
Allowance for credit losses: Ending balance: collectively evaluated			803		803	$ 180
Allowance for credit losses: Ending Balance			$ 803		$ 803
Loans receivables: Ending balance: individually evaluated
Loans receivables: Ending balance: collectively evaluated
Loans receivables: Ending balance
Effect of Adopting ASU No. 2016-13 ("CECL") [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				(4,165)
Effect of Adopting ASU No. 2016-13 ("CECL") [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				144
Effect of Adopting ASU No. 2016-13 ("CECL") [Member] | Commercial & Multi-family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				(7,123)
Effect of Adopting ASU No. 2016-13 ("CECL") [Member] | Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				1,387
Effect of Adopting ASU No. 2016-13 ("CECL") [Member] | Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				1,418
Effect of Adopting ASU No. 2016-13 ("CECL") [Member] | Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				182
Effect of Adopting ASU No. 2016-13 ("CECL") [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				7
Effect of Adopting ASU No. 2016-13 ("CECL") [Member] | Unallocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				(180)
Adjusted Balance [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				28,208
Adjusted Balance [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				2,618
Adjusted Balance [Member] | Commercial & Multi-family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				14,626
Adjusted Balance [Member] | Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				3,481
Adjusted Balance [Member] | Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				6,785
Adjusted Balance [Member] | Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				667
Adjusted Balance [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses: Beginning Balance				$ 31

[1] The Company adopted ASU 2016-13 as of January 1, 2023. Prior year periods have not been restated.

XML

Loans Receivable and Allowance for Credit Losses (Allowance for Credit Losses on Off-Balance Sheet Exposures) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Credit Losses on Off-Balance Sheet Exposures: Beginning Balance	$ 254
Allowance for Credit Losses on Off-Balance Sheet Exposures: Provision (benefit)	148	$ (864)
Allowance for Credit Losses on Off-Balance Sheet Exposures: Ending Balance	$ 402	402
Effect of Adopting ASU No. 2016-13 ("CECL") [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Credit Losses on Off-Balance Sheet Exposures: Beginning Balance		$ 1,266

XML

Loans Receivable and Allowance for Credit Losses (Delinquency Status of Total Loans) (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 3,322,139,000	$ 3,082,418,000
Loans Receivable >90 Days and Accruing	0	0
Total Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	34,441,000	9,428,000
30 To 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	14,773,000	3,305,000
60 To 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	12,539,000	1,857,000
Greater Than 90 Days [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	7,129,000	4,266,000
Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	3,287,698,000	3,072,990,000
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	251,845,000	250,123,000
Commercial & Multi-family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,444,887,000	2,345,229,000
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	185,202,000	144,931,000
Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	370,512,000	282,007,000
Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	66,046,000	56,888,000
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	3,647,000	3,240,000
Originated loans [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	251,845,000	250,123,000
Loans Receivable >90 Days and Accruing
Originated loans [Member] | Residential [Member] | Total Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,084,000	567,000
Originated loans [Member] | Residential [Member] | 30 To 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	50,000	253,000
Originated loans [Member] | Residential [Member] | 60 To 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	856,000	314,000
Originated loans [Member] | Residential [Member] | Greater Than 90 Days [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	178,000
Originated loans [Member] | Residential [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	250,761,000	249,556,000
Originated loans [Member] | Commercial & Multi-family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,444,887,000	2,345,229,000
Loans Receivable >90 Days and Accruing
Originated loans [Member] | Commercial & Multi-family [Member] | Total Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	21,840,000	2,591,000
Originated loans [Member] | Commercial & Multi-family [Member] | 30 To 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	12,195,000	2,163,000
Originated loans [Member] | Commercial & Multi-family [Member] | 60 To 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	6,378,000	428,000
Originated loans [Member] | Commercial & Multi-family [Member] | Greater Than 90 Days [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	3,267,000
Originated loans [Member] | Commercial & Multi-family [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,423,047,000	2,342,638,000
Originated loans [Member] | Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	185,202,000	144,931,000
Loans Receivable >90 Days and Accruing
Originated loans [Member] | Construction [Member] | Total Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	4,931,000	3,180,000
Originated loans [Member] | Construction [Member] | 30 To 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans
Originated loans [Member] | Construction [Member] | 60 To 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,045,000
Originated loans [Member] | Construction [Member] | Greater Than 90 Days [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,886,000	3,180,000
Originated loans [Member] | Construction [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	180,271,000	141,751,000
Originated loans [Member] | Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	370,512,000	282,007,000
Loans Receivable >90 Days and Accruing
Originated loans [Member] | Commercial Business [Member] | Total Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	5,949,000	2,391,000
Originated loans [Member] | Commercial Business [Member] | 30 To 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,056,000	190,000
Originated loans [Member] | Commercial Business [Member] | 60 To 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	3,095,000	1,115,000
Originated loans [Member] | Commercial Business [Member] | Greater Than 90 Days [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	798,000	1,086,000
Originated loans [Member] | Commercial Business [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	364,563,000	279,616,000
Originated loans [Member] | Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	66,046,000	56,888,000
Loans Receivable >90 Days and Accruing
Originated loans [Member] | Home Equity [Member] | Total Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	636,000	699,000
Originated loans [Member] | Home Equity [Member] | 30 To 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	472,000	699,000
Originated loans [Member] | Home Equity [Member] | 60 To 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	164,000
Originated loans [Member] | Home Equity [Member] | Greater Than 90 Days [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans
Originated loans [Member] | Home Equity [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	65,410,000	56,189,000
Originated loans [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	3,647,000	3,240,000
Loans Receivable >90 Days and Accruing
Originated loans [Member] | Consumer [Member] | Total Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,000
Originated loans [Member] | Consumer [Member] | 30 To 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans
Originated loans [Member] | Consumer [Member] | 60 To 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,000
Originated loans [Member] | Consumer [Member] | Greater Than 90 Days [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans
Originated loans [Member] | Consumer [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 3,646,000	$ 3,240,000

XML

Loans Receivable and Allowance for Credit Losses (Non-Accruing Loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 7,931	$ 5,109
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	178	243
Commercial & Multi-family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	3,267	346
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	2,886	3,180
Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 1,600	$ 1,340

XML

Loans Receivable and Allowance for Credit Losses (Loan Portfolio by Pass Rating) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	$ 259,298		$ 259,298		$ 966,179
Total Loans, Fiscal Year Before Latest Fiscal Year	960,433		960,433		341,920
Total Loans, Two Years Before Latest Fiscal Year	332,800		332,800		292,806
Total Loans, Three Years Before Latest Fiscal Year	279,364		279,364		78,669
Total Loans, Four Years Before Latest Fiscal Year	73,663		73,663		376,336
Total Loans, Prior	1,047,326		1,047,326		758,958
Total Loans, Revolving Loans	368,547		368,547		266,825
Total Loans, Revolving Loans to Term Loans	708		708		725
Total Loans	3,322,139		3,322,139		3,082,418
Gross Charge-Offs, Current Fiscal Year			250
Gross Charge-Offs, Fiscal Year Before Latest Fiscal Year			305
Gross Charge-Offs	515	$ 931	555	$ 1,703
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	16,805		16,805		56,893
Total Loans, Fiscal Year Before Latest Fiscal Year	55,104		55,104		40,644
Total Loans, Two Years Before Latest Fiscal Year	39,811		39,811		33,019
Total Loans, Three Years Before Latest Fiscal Year	31,622		31,622		12,959
Total Loans, Four Years Before Latest Fiscal Year	12,184		12,184		23,918
Total Loans, Prior	96,319		96,319		82,690
Total Loans	251,845		251,845		250,123
Gross Charge-Offs
Residential [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	16,805		16,805		56,893
Total Loans, Fiscal Year Before Latest Fiscal Year	54,608		54,608		40,465
Total Loans, Two Years Before Latest Fiscal Year	38,402		38,402		33,019
Total Loans, Three Years Before Latest Fiscal Year	31,622		31,622		12,959
Total Loans, Four Years Before Latest Fiscal Year	12,184		12,184		23,918
Total Loans, Prior	96,050		96,050		82,144
Total Loans	249,671		249,671		249,398
Residential [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Fiscal Year Before Latest Fiscal Year	496		496
Total Loans, Two Years Before Latest Fiscal Year	91		91
Total Loans, Prior	91		91		303
Total Loans	678		678		303
Residential [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Fiscal Year Before Latest Fiscal Year					179
Total Loans, Two Years Before Latest Fiscal Year	1,318		1,318
Total Loans, Prior	178		178		243
Total Loans	1,496		1,496		422
Commercial & Multi-family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	219,180		219,180		854,898
Total Loans, Fiscal Year Before Latest Fiscal Year	825,697		825,697		234,441
Total Loans, Two Years Before Latest Fiscal Year	230,152		230,152		235,830
Total Loans, Three Years Before Latest Fiscal Year	221,430		221,430		55,752
Total Loans, Four Years Before Latest Fiscal Year	52,614		52,614		320,353
Total Loans, Prior	893,892		893,892		643,955
Total Loans, Revolving Loans	1,922		1,922
Total Loans	2,444,887		2,444,887		2,345,229
Gross Charge-Offs
Commercial & Multi-family [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	219,180		219,180		854,299
Total Loans, Fiscal Year Before Latest Fiscal Year	822,626		822,626		234,441
Total Loans, Two Years Before Latest Fiscal Year	226,073		226,073		235,830
Total Loans, Three Years Before Latest Fiscal Year	217,855		217,855		55,752
Total Loans, Four Years Before Latest Fiscal Year	52,614		52,614		312,353
Total Loans, Prior	848,504		848,504		628,191
Total Loans, Revolving Loans	1,922		1,922
Total Loans	2,388,774		2,388,774		2,320,866
Commercial & Multi-family [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Prior	26,690		26,690		14,183
Total Loans	26,690		26,690		14,183
Commercial & Multi-family [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year					599
Total Loans, Fiscal Year Before Latest Fiscal Year	3,071		3,071
Total Loans, Two Years Before Latest Fiscal Year	4,079		4,079
Total Loans, Three Years Before Latest Fiscal Year	3,575		3,575
Total Loans, Four Years Before Latest Fiscal Year					8,000
Total Loans, Prior	18,698		18,698		1,581
Total Loans	29,423		29,423		10,180
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	15,108		15,108		51,783
Total Loans, Fiscal Year Before Latest Fiscal Year	77,130		77,130		58,827
Total Loans, Two Years Before Latest Fiscal Year	57,434		57,434		17,518
Total Loans, Three Years Before Latest Fiscal Year	21,085		21,085
Total Loans, Four Years Before Latest Fiscal Year					4,974
Total Loans, Prior	8,764		8,764		4,031
Total Loans, Revolving Loans	5,681		5,681		7,798
Total Loans	185,202		185,202		144,931
Gross Charge-Offs
Construction [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	15,108		15,108		51,783
Total Loans, Fiscal Year Before Latest Fiscal Year	75,672		75,672		58,827
Total Loans, Two Years Before Latest Fiscal Year	57,434		57,434		17,518
Total Loans, Three Years Before Latest Fiscal Year	20,499		20,499
Total Loans, Four Years Before Latest Fiscal Year					1,794
Total Loans, Prior	5,878		5,878		4,031
Total Loans, Revolving Loans	5,681		5,681		7,798
Total Loans	180,272		180,272		141,751
Construction [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Fiscal Year Before Latest Fiscal Year	1,458		1,458
Total Loans, Three Years Before Latest Fiscal Year	586		586
Total Loans, Four Years Before Latest Fiscal Year					3,180
Total Loans, Prior	2,886		2,886
Total Loans	4,930		4,930		3,180
Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	2,553		2,553		70
Total Loans, Fiscal Year Before Latest Fiscal Year	305		305		5,331
Total Loans, Two Years Before Latest Fiscal Year	3,314		3,314		5,470
Total Loans, Three Years Before Latest Fiscal Year	4,333		4,333		8,501
Total Loans, Four Years Before Latest Fiscal Year	7,512		7,512		25,626
Total Loans, Prior	41,750		41,750		21,845
Total Loans, Revolving Loans	310,745		310,745		215,164
Total Loans	370,512		370,512		282,007
Gross Charge-Offs	515	$ 931	555	$ 1,703
Commercial Business [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	2,553		2,553		70
Total Loans, Fiscal Year Before Latest Fiscal Year	305		305		5,331
Total Loans, Two Years Before Latest Fiscal Year	3,314		3,314		5,470
Total Loans, Three Years Before Latest Fiscal Year	4,333		4,333		8,070
Total Loans, Four Years Before Latest Fiscal Year	7,143		7,143		22,940
Total Loans, Prior	36,487		36,487		19,487
Total Loans, Revolving Loans	304,133		304,133		212,402
Total Loans	358,268		358,268		273,770
Commercial Business [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Three Years Before Latest Fiscal Year					431
Total Loans, Four Years Before Latest Fiscal Year	369		369
Total Loans, Prior	1,666		1,666		1,600
Total Loans, Revolving Loans	3,582		3,582		2,385
Total Loans	5,617		5,617		4,416
Commercial Business [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Four Years Before Latest Fiscal Year					2,686
Total Loans, Prior	3,597		3,597		758
Total Loans, Revolving Loans	3,030		3,030		377
Total Loans	6,627		6,627		3,821
Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	4,189		4,189		1,541
Total Loans, Fiscal Year Before Latest Fiscal Year	1,704		1,704		643
Total Loans, Two Years Before Latest Fiscal Year	565		565		830
Total Loans, Three Years Before Latest Fiscal Year	782		782		1,390
Total Loans, Four Years Before Latest Fiscal Year	1,306		1,306		1,465
Total Loans, Prior	6,601		6,601		6,437
Total Loans, Revolving Loans	50,191		50,191		43,857
Total Loans, Revolving Loans to Term Loans	708		708		725
Total Loans	66,046		66,046		56,888
Gross Charge-Offs
Home Equity [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	4,189		4,189		1,541
Total Loans, Fiscal Year Before Latest Fiscal Year	1,704		1,704		643
Total Loans, Two Years Before Latest Fiscal Year	565		565		830
Total Loans, Three Years Before Latest Fiscal Year	782		782		1,390
Total Loans, Four Years Before Latest Fiscal Year	1,306		1,306		1,465
Total Loans, Prior	6,601		6,601		6,437
Total Loans, Revolving Loans	50,074		50,074		43,857
Total Loans, Revolving Loans to Term Loans	496		496		513
Total Loans	65,717		65,717		56,676
Home Equity [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Revolving Loans	117		117
Total Loans, Revolving Loans to Term Loans	212		212		212
Total Loans	329		329		212
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	1,463		1,463		994
Total Loans, Fiscal Year Before Latest Fiscal Year	493		493		2,034
Total Loans, Two Years Before Latest Fiscal Year	1,524		1,524		139
Total Loans, Three Years Before Latest Fiscal Year	112		112		67
Total Loans, Four Years Before Latest Fiscal Year	47		47
Total Loans, Revolving Loans	8		8		6
Total Loans	3,647		3,647		3,240
Gross Charge-Offs
Consumer [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	1,463		1,463		994
Total Loans, Fiscal Year Before Latest Fiscal Year	493		493		2,034
Total Loans, Two Years Before Latest Fiscal Year	1,524		1,524		139
Total Loans, Three Years Before Latest Fiscal Year	112		112		67
Total Loans, Four Years Before Latest Fiscal Year	47		47
Total Loans, Revolving Loans	8		8		6
Total Loans	$ 3,647		$ 3,647		$ 3,240

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Stockholders' Equity (Narrative) (Details) - USD ($)						3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 14, 2023	Sep. 23, 2022	May 01, 2022	Mar. 24, 2022	Feb. 04, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Stockholders' Equity Note [Line Items]
Preferred stock, par value per share						$ 0.01		$ 0.01		$ 0.01
Preferred stock redeemed, value						$ 220,000		$ 220,000	$ 14,730,000
Series H Preferred Stock [Member]
Stockholders' Equity Note [Line Items]
Preferred stock, dividend rate	3.50%					3.50%	3.50%	3.50%	3.50%	3.50%
Preferred stock redeemed, shares	22
Preferred stock, redemption price	$ 10,000
Preferred stock redeemed, value	$ 220,000
Series D Preferred Stock [Member]
Stockholders' Equity Note [Line Items]
Preferred stock, dividend rate			4.50%						4.50%
Preferred stock redeemed, shares			940
Preferred stock, redemption price			$ 10,000
Preferred stock redeemed, value			$ 9,400,000
Series I Preferred Stock [Member]
Stockholders' Equity Note [Line Items]
Preferred stock, par value per share		$ 0.01		$ 0.01
Preferred stock, dividend rate						3.00%	3.00%	3.00%	3.00%	3.00%
Proceeds from issuance of private placement		$ 4,440,000		$ 2,620,000
Shares issued		444		260
Series G Preferred Stock [Member]
Stockholders' Equity Note [Line Items]
Preferred stock, dividend rate					6.00%				6.00%
Preferred stock redeemed, shares					533
Preferred stock, redemption price					$ 10,000
Preferred stock redeemed, value					$ 5,300,000

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Bank-Owned Life Insurance (Narrative) (Details) $ in Millions	Sep. 30, 2023 USD ($)
Bank-Owned Life Insurance [Abstract]
Bank owned life insurance, amount	$ 72.8

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Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Impairment of intangible assets	$ 0
Goodwill	5,200,000		$ 5,200,000
Core Deposit Intangibles [Member]
Amortization expense	94,000	$ 37,000
Intangible assets, net	$ 35,000		$ 129,000
Intangible asset, useful life	10 years

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Fair Values of Financial Instruments (Narrative) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Transfers between fair value hierarchy	$ 0	$ 0
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	0	0
(Level 3) Significant Unobservable Inputs [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	7,100,000	8,400,000
Valuation allowance	$ 4,200,000	$ 2,800,000

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Fair Values of Financial Instruments (Fair Value Measurements, Recurring) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities Available for Sale	$ 86,172	$ 91,715
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities Available for Sale	86,172	91,715
Marketable Equities	8,272	17,686
Total Securities	94,444	109,401
(Level 1) Quoted Prices In Active Markets For Identical Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities Available for Sale
Marketable Equities	8,272	17,686
(Level 1) Quoted Prices In Active Markets For Identical Assets [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities Available for Sale
Marketable Equities	8,272	17,686
Total Securities	8,272	17,686
(Level 2) Significant Other Observable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities Available for Sale	86,172	91,715
Marketable Equities
(Level 2) Significant Other Observable Inputs [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities Available for Sale	86,172	91,715
Marketable Equities
Total Securities	86,172	91,715
(Level 3) Significant Unobservable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities Available for Sale
Marketable Equities
(Level 3) Significant Unobservable Inputs [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities Available for Sale
Marketable Equities
Total Securities

XML

Fair Values of Financial Instruments (Fair Value Measurements, Nonrecurring) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 75	$ 75
(Level 3) Significant Unobservable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually Evaluated Loans	2,876	5,587
Other real estate owned	75	75
Individually Evaluated Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually Evaluated Loans	2,876	5,587
Individually Evaluated Loans [Member] | (Level 1) Quoted Prices In Active Markets For Identical Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually Evaluated Loans
Individually Evaluated Loans [Member] | (Level 2) Significant Other Observable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually Evaluated Loans
Individually Evaluated Loans [Member] | (Level 3) Significant Unobservable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually Evaluated Loans	2,876	5,587
Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	75	75
Other Real Estate Owned [Member] | (Level 1) Quoted Prices In Active Markets For Identical Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned
Other Real Estate Owned [Member] | (Level 2) Significant Other Observable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned
Other Real Estate Owned [Member] | (Level 3) Significant Unobservable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 75	$ 75

XML

Fair Values of Financial Instruments (Quantitative Information About Level 3 Fair Value Measurements) (Details) $ in Thousands	Sep. 30, 2023 USD ($) item	Dec. 31, 2022 USD ($) item
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Real Estate Owned | $	$ 75	$ 75
(Level 3) Significant Unobservable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually Evaluated Loans | $	2,876	5,587
Other Real Estate Owned | $	$ 75	$ 75
(Level 3) Significant Unobservable Inputs [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually Evaluated Loans, Range	0	0
Other Real Estate Owned, Range	0	0
(Level 3) Significant Unobservable Inputs [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually Evaluated Loans, Range	10	10
Other Real Estate Owned, Range	10	10

XML

Fair Values of Financial Instruments (Carrying Values and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	$ 86,172	$ 91,715
Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	251,916	229,359
Interest-earning time deposits	735	735
Debt securities available for sale	86,172	91,715
Equity investments	8,272	17,686
Loans held for sale	472	658
Loans receivable, net	3,285,727	3,045,331
FHLB of New York stock, at cost	31,629	20,113
Accrued interest receivable	16,175	13,455
Deposits	2,819,556	2,811,607
Debt	622,674	382,261
Subordinated debentures	37,624	37,508
Accrued interest payable	5,735	3,073
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	251,916	229,359
Interest-earning time deposits	735	735
Debt securities available for sale	86,172	91,715
Equity investments	8,272	17,686
Loans held for sale	472	658
Loans receivable, net	3,088,826	2,876,925
FHLB of New York stock, at cost	31,629	20,113
Accrued interest receivable	16,175	13,455
Deposits	2,813,939	2,499,978
Debt	615,575	377,227
Subordinated debentures	39,262	40,113
Accrued interest payable	5,735	3,073
(Level 1) Quoted Prices In Active Markets For Identical Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	251,916	229,359
Interest-earning time deposits
Debt securities available for sale
Equity investments	8,272	17,686
Loans held for sale
Loans receivable, net
FHLB of New York stock, at cost
Accrued interest receivable
Deposits	1,740,300	1,713,754
Debt
Subordinated debentures
Accrued interest payable
(Level 2) Significant Other Observable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents
Interest-earning time deposits	735	735
Debt securities available for sale	86,172	91,715
Equity investments
Loans held for sale	472	658
Loans receivable, net
FHLB of New York stock, at cost	31,629	20,113
Accrued interest receivable	16,175	13,455
Deposits	1,073,639	786,224
Debt	615,575	377,227
Subordinated debentures	39,262	40,113
Accrued interest payable	5,735	3,073
(Level 3) Significant Unobservable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents
Interest-earning time deposits
Debt securities available for sale
Equity investments
Loans held for sale
Loans receivable, net	3,088,826	2,876,925
FHLB of New York stock, at cost
Accrued interest receivable
Deposits
Debt
Subordinated debentures
Accrued interest payable

XML

Subordinated Debt (Narrative) (Details) - USD ($) $ in Thousands		9 Months Ended
	Aug. 01, 2023	Sep. 30, 2023	Dec. 31, 2022	Jul. 30, 2018
Subordinated Borrowing [Line Items]
Face amount				$ 33,500
Fixed To Floating Rate Subordinated Debentures [Member]
Subordinated Borrowing [Line Items]
Notes term		10 years
Deferred finance costs		$ 0	$ 116
Fixed To Floating Rate Subordinated Debentures [Member] | First Five Years [Member]
Subordinated Borrowing [Line Items]
Interest rate		5.625%
Interest rate term		5 years
Fixed To Floating Rate Subordinated Debentures [Member] | After Five Years [Member]
Subordinated Borrowing [Line Items]
Variable interest rate spread	2.72%
Trust Preferred Junior Subordinated Debenture [Member]
Subordinated Borrowing [Line Items]
Variable interest rate spread		2.65%
Trust preferred securities		$ 4,100
Fixed To Floating Rate And Trust Preferred Junior Subordinated Debentures [Member]
Subordinated Borrowing [Line Items]
Variable interest rate spread		0.26161%

XML

Lease Obligations (Narrative) (Details) - item	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Number of operating leases	25
Weighted average remaining lease term, operating leases	5 years 11 months 12 days	6 years 5 months 26 days
Weighted average discount rate, operating leases	2.95%	2.83%
Minimum [Member]
Lessee, Lease, Description [Line Items]
Remaining lease terms	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Remaining lease terms	10 years

XML

Lease Obligations (Schedule of Lease Information) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Commitments and Contingencies [Abstract]
Operating lease expense	$ 878	$ 964	$ 2,710	$ 2,804
Variable lease expense-operating leases	269	$ 258	793	$ 734
Operating lease right-of-use assets	12,953		12,953		$ 13,520
Current liabilities	812		812		3,062
Operating lease liabilities (noncurrent portion)	13,833		13,833		12,218
Imputed Interest	(1,327)		(1,327)		(1,421)
Total Operating Lease Liabilities	$ 13,318		$ 13,318		$ 13,859

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Lease Obligations (Summary of Maturity of Lease Obligations for Operating Leases) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Commitments and Contingencies [Abstract]
One year or less	$ 812	$ 3,062
Over one year through three years	5,468	4,766
Over three years through five years	4,341	3,496
Over five years	4,024	3,956
Gross Operating Lease Liabilities	14,645	15,280
Imputed Interest	(1,327)	(1,421)
Total Operating Lease Liabilities	$ 13,318	$ 13,859

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Subsequent Events (Narrative) (Details)	Oct. 18, 2023 $ / shares
Subsequent Event [Line Items]
Date declared	Oct. 18, 2023
Date of record	Nov. 03, 2023
Date paid	Nov. 17, 2023
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends per common share	$ 0.16