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BCB BANCORP INC

BCB BANCORP INCBCBPEarnings & Financial Report

Nasdaq · Financials · Savings Institution, Federally Chartered

What changed in BCB BANCORP INC's 10-K — 2022 vs 2023

Top changes in BCB BANCORP INC's 2023 10-K

307 paragraphs added · 339 removed · 237 edited across 3 sections

Item 2. Properties

Properties — owned and leased real estate

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ITEM 2. PROPERTIES At December 31, 2022, the Bank conducted its business through an executive office, two administrative offices, and 28 branch offices. 13 offices have drive-up facilities. The Bank has 37 automatic teller machines at its branch facilities and three other off-site locations.
ITEM 2. PROPERTIES At December 31, 2023, the Bank conducted its business through an executive office, two administrative offices, and 28 branch offices. 13 offices have drive-up facilities. The Bank has 37 automatic teller machines at its branch facilities and three other off-site locations.
The following table sets forth information relating to each of the Bank’s offices at December 31, 2022. The total net book value of the Bank’s premises and equipment at December 31, 2022 was $10.5 million.
The following table sets forth information relating to each of the Bank’s offices at December 31, 2023. The total net book value of the Bank’s premises and equipment at December 31, 2023 was $13.1 million.
Location Year Office Opened Net Book Value (In Thousands) Executive Office 104-110 Avenue C, Bayonne, New Jersey 2003 $ 2,249 Administrative and Other Offices 591-597 Avenue C, Bayonne, New Jersey 2010 51 (1) 27 West 18th Street, Bayonne, New Jersey 2014 197 (1) Branch Offices 860 Broadway, Bayonne, New Jersey 2000 544 (1) 510 Broadway, Bayonne, New Jersey 2003 24 (1) 401 Washington Street, Hoboken, New Jersey 2010 124 (1) 987 Broadway, Bayonne, New Jersey 2010 - (1) 473 Spotswood Englishtown Rd., Monroe Township, New Jersey 2010 114 (1) 611 Avenue C, Bayonne, New Jersey 2010 6 (1) 181 Avenue A, Bayonne, New Jersey 2010 2,040 211 Washington St., Jersey City, New Jersey 2010 - (1) 200 Valley Street, South Orange, New Jersey 2011 957 378 Amboy Road, Woodbridge, New Jersey 2019 149 (1) 165 Passaic Avenue, Fairfield, New Jersey 2014 - (1) 354 New Dorp Lane, Staten Island, New York 2015 - (1) 190 Park Avenue, Rutherford, New Jersey 2015 85 (1) 1500 Forest Avenue, Staten Island, New York 2016 735 (1) 626 Laurel Avenue, Holmdel, New Jersey 2016 10 (1) 734 Ridge Road, Lyndhurst, New Jersey 2016 88 (1) 803 Roosevelt Avenue, Carteret, New Jersey 2016 - (1) 2000 Morris Avenue, Union, New Jersey 2016 49 (1) 155 Maplewood Avenue, Maplewood, New Jersey 2018 381 (1) 1630 Oak Tree Road, Edison, New Jersey 2018 388 (1) 1452 Route 46 West, Parsippany, New Jersey 2018 160 (1) 781 Newark Avenue, Jersey City, New Jersey 2018 10 (1) 70 Broadway, Hicksville, New York 2018 11 (1) 10 Schalks Crossing Road, Plainsboro, New Jersey 2018 149 (1) 876 Kinderkamack Road, River Edge, New Jersey 2019 98 (1) 1100 Washington Street, Hoboken, New Jersey 2019 228 (1) 269 Ferry Street, Newark, New Jersey 2020 379 (1) Net book value of properties 9,226 Net book value of furnishings and equipment 1,282 (2) Total premises and equipment $ 10,508 (1) Leased property (2) Includes off-site ATMs 24 Table of Contents
Location Year Office Opened Net Book Value (In Thousands) Executive Office 104-110 Avenue C, Bayonne, New Jersey 2003 $ 2,179 Administrative and Other Offices 591-597 Avenue C, Bayonne, New Jersey 2010 50 (1) 27 West 18th Street, Bayonne, New Jersey 2014 191 (1) Branch Offices 860 Broadway, Bayonne, New Jersey 2000 478 (1) 510 Broadway, Bayonne, New Jersey 2003 19 (1) 401 Washington Street, Hoboken, New Jersey 2010 135 (1) 987 Broadway, Bayonne, New Jersey 2010 - (1) 473 Spotswood Englishtown Rd., Monroe Township, New Jersey 2010 97 (1) 611 Avenue C, Bayonne, New Jersey 2010 29 (1) 181 Avenue A, Bayonne, New Jersey 2010 1,984 211 Washington St., Jersey City, New Jersey 2010 - (1) 200 Valley Street, South Orange, New Jersey 2011 927 378 Amboy Road, Woodbridge, New Jersey 2019 6 (1) 165 Passaic Avenue, Fairfield, New Jersey 2014 - (1) 354 New Dorp Lane, Staten Island, New York 2015 - (1) 190 Park Avenue, Rutherford, New Jersey 2015 23 (1) 1500 Forest Avenue, Staten Island, New York 2016 625 (1) 626 Laurel Avenue, Holmdel, New Jersey 2016 15 (1) 734 Ridge Road, Lyndhurst, New Jersey 2016 63 (1) 2000 Morris Avenue, Union, New Jersey 2016 13 (1) 156 Maplewood Avenue, Maplewood, New Jersey 2018 354 (1) 1630 Oak Tree Road, Edison, New Jersey 2018 190 (1) 1452 Route 46 West, Parsippany, New Jersey 2018 89 (1) 781 Newark Avenue, Jersey City, New Jersey 2018 3,185 70 Broadway, Hicksville, New York 2018 - (1) 10 Schalks Crossing Road, Plainsboro, New Jersey 2018 64 (1) 876 Kinderkamack Road, River Edge, New Jersey 2019 93 (1) 1100 Washington Street, Hoboken, New Jersey 2019 192 (1) 269 Ferry Street, Newark, New Jersey 2020 322 (1) 240 Page Avenue, Staten Island, New York 2023 306 (1) Net book value of properties 11,629 Net book value of furnishings and equipment 1,428 (2) Total premises and equipment $ 13,057 (1) Leased property (2) Includes off-site ATMs 22 Table of Contents

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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As of December 31, 2022, 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 4. MI NE SAFETY DISCLOSURES Not applicable. PART II
As of December 31, 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 4. MI NE SAFETY DISCLOSURES Not applicable. PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

233 edited+70 added−102 removed143 unchanged
The tax years subject to examination by the State taxing authorities are the years ended December 31, 2021, 2020, 2019, and 2018. In 2022, the company received notice that it had been selected for audit by the State of New Jersey for the years ending December 31, 2020, 2019, and 2018.
The tax years subject to examination by the State taxing authorities are the years ended December 31, 2022, 2021, and 2020. In 2022, the Company received notice that it had been selected for audit by the State of New Jersey for the years ending December 31, 2020, 2019, and 2018.
The audit was completed in 2022 and resulted in a nominal audit adjustment. In 2022, the Company received notice that it had been selected for an audit by the City of New York for the years ending December 31, 2020, 2019, 2018, and 2017.
The audit was completed in 2022 and resulted in a nominal audit adjustment. In 2022, the Company received notice that it had been selected for an audit by the City of New York for the years ending December 31, 2020, 2019, 2018, and 2017. The audit was completed in 2022 and resulted in a nominal audit adjustment.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a)(1) Financial Statements The exhibits and financial statement schedules filed as a part of this Form 10-K are as follows: (A) Report of Independent Registered Public Accounting Firm (B) Consolidated Statements of Financial Condition as of December 31, 2022 and 2021 (C) Consolidated Statements of Operations for the years ended December 31, 2022 and 2021 (D) Consolidated Statements of Comprehensive Income for the years ended December 31, 2022 and 2021 (E) Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2022 and 2021 (F) Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 (G) Notes to Consolidated Financial Statements (a)(2) Financial Statement Schedules All schedules are omitted because they are not required or applicable, or the required information is shown in the consolidated statements or the notes thereto.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a)(1) Financial Statements The exhibits and financial statement schedules filed as a part of this Form 10-K are as follows: (A) Report of Independent Registered Public Accounting Firm (B) Consolidated Statements of Financial Condition as of December 31, 2023 and 2022 (C) Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021 (D) Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021 (E) Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2023, 2022 and 2021 (F) Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021 (G) Notes to Consolidated Financial Statements (a)(2) Financial Statement Schedules All schedules are omitted because they are not required or applicable, or the required information is shown in the consolidated statements or the notes thereto.
Loans Held for Sale (Carried at Cost) 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 (Carried at Lower of Cost or Fair Value) 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.
Such stock is carried at cost. The Company reviews for impairment based on the ultimate recoverability of the cost basis of the stock. No impairment charges were recorded related to the FHLB of New York stock during 2022 or 2021.
Such stock is carried at cost. The Company reviews for impairment based on the ultimate recoverability of the cost basis of the stock. No impairment charges were recorded related to the FHLB of New York stock during 2023, 2022 or 2021.
On April 2, 2021, the Bank renewed a five-year lease of property in Lyndhurst, New Jersey with 734 Ridge Realty, LLC, which is owned by seven Directors of the Bank and the Company.
On April 2, 2021, the Bank renewed a five -year lease of property in Lyndhurst, New Jersey with 734 Ridge Realty, LLC, which is owned by Directors of the Bank and the Company.
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. 31 Table of Contents IT EM 8.
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. ‎ 30 Table of Contents IT EM 8.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. 72 Table of Contents PART III IT EM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The Company has adopted a Code of Ethics that applies to the Company’s Chief Executive Officer, Chief Financial Officer, Controller, and/or any persons performing similar functions.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. 71 Table of Contents PART III IT EM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The Company has adopted a Code of Ethics that applies to the Company’s Chief Executive Officer, Chief Financial Officer, Controller, and/or any persons performing similar functions.
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 December 31, 2022.
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 December 31, 2023.
At December 31, 2021, the Bank owned one property totaling $ 75,000 . Interest Rate Risk The Bank is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other funds, to make loans primarily secured by real estate and to purchase securities.
At December 31, 2022, the Bank owned one property totaling $ 75,000 . Interest Rate Risk The Bank is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other funds, to make loans primarily secured by real estate and to purchase securities.
The Company conducts impairment analysis on goodwill at least annually or more often as conditions require. Pursuant to ASC 350-20-35, the Company conducted a qualitative assessment of goodwill as of October 31, 2022, and determined that it was more likely than not that goodwill was not impaired. Accordingly, there was no impairment at December 31, 2022.
The Company conducts impairment analysis on goodwill at least annually or more often as conditions require. Pursuant to ASC 350-20-35, the Company conducted a qualitative assessment of goodwill as of October 31, 2023, and determined that it was more likely than not that goodwill was not impaired. Accordingly, there was no impairment at December 31, 2023.
The loss is not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for loan losses. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties.
The loss is not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for credit losses. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties.
Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. In preparing these consolidated financial statements, the Company evaluated the events that occurred between December 31, 2022 and the date these consolidated financial statements were issued.
Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. In preparing these consolidated financial statements, the Company evaluated the events that occurred between December 31, 2023 and the date these consolidated financial statements were issued.
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 economic conditions generally.
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.
While management uses available information to recognize losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions in the market area. Management’s assessment regarding impairment of securities is based on future projections of cash flow which are subject to change.
While management uses available information to recognize losses on loans, future additions to the allowance for credit losses may be necessary based on changes in economic conditions in the market area. Management’s assessment regarding impairment of securities is based on future projections of cash flow which are subject to change.
The Company recognizes interest and penalties on unrecognized tax benefits in income taxes expense in the Consolidated Statement of Operations. The Company did not recognize any interest and penalties for the years ended December 31, 2022 or 2021. The tax years subject to examination by the Federal taxing authority are the years ended December 31, 2021, 2020, and 2019.
The Company recognizes interest and penalties on unrecognized tax benefits in income taxes expense in the consolidated statement of operations. The Company did not recognize any interest and penalties for the years ended December 31, 2023, 2022, or 2021. The tax years subject to examination by the Federal taxing authority are the years ended December 31, 2022, 2021, and 2020.
There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fourth fiscal quarter of 2022 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fourth fiscal quarter of 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
Under New Jersey law, the Company is permitted to declare dividends on its common stock only if, after payment of the dividend, the capital stock of the Bank will be unimpaired and either the Bank will have a surplus of not less than 50 percent of its capital stock or the payment of the dividend will not reduce the Bank’s surplus.
Under New Jersey law, the Company is permitted to declare dividends on its common stock only if, after payment of the dividend, the capital stock of the Bank will be unimpaired and the Bank will have a surplus of no less than 50 percent of its capital stock or, if not, the payment of the dividend will not reduce the Bank’s surplus.
In addition, our determination of the amount of the allowance for loan losses is subject to review by the New Jersey Department of Banking and Insurance and the FDIC, as part of their examination process. After a review of the information available, our regulators might require the establishment of an additional allowance.
In addition, our determination of the amount of the allowance for credit losses is subject to review by the New Jersey Department of Banking and Insurance and the FDIC, as part of their examination process. After a review of the information available, our regulators might require the establishment of an additional allowance.
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 December 31, 2022.
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 December 31, 2023.
Opinion on Internal Control Over Financial Reporting We have audited BCB Bancorp Inc. and subsidiaries’ (the “Company”) internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in 2013.
Opinion on Internal Control Over Financial Reporting ‎ We have audited BCB Bancorp Inc. and subsidiaries’ (the “Company”) internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in 2013.
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2022 (the “Evaluation Date”).
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2023 (the “Evaluation Date”).
For the years ended December 31, 2022 and 2021, the difference in the weighted average number of basic and diluted common shares was due solely to the effects of outstanding stock options. No adjustments to net income were necessary in calculating basic and diluted net income per share.
For the years ended December 31, 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. No adjustments to net income were necessary in calculating basic and diluted net income per share.
Bank-Owned Life Insurance Bank-Owned Life Insurance policies are reflected on the consolidated statements of financial condition at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of operations and are not subject to income taxes.
Bank-Owned Life Insurance Bank-Owned Life Insurance policies are reflected on the consolidated statements of financial condition at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received in excess of carrying value, are reflected in non-interest income on the consolidated statements of operations and are not subject to income taxes.
(5) Net interest margin represents net interest income as a percentage of average interest-earning assets. 29 Table of Contents Rate/Volume Analysis The table below sets forth certain information regarding changes in our interest income and interest expense for the years indicated.
(5) Net interest margin represents net interest income as a percentage of average interest-earning assets. 27 Table of Contents Rate/Volume Analysis The table below sets forth certain information regarding changes in our interest income and interest expense for the years indicated.
The Bank’s total credit exposure cannot exceed 50.0 percent of its total assets, or $ 1.773 billion, based on the borrowing limitations outlined in the FHLB of New York’s member products guide. The total credit exposure limit of 50.0 percent of total assets is recalculated each quarter.
The Bank’s total credit exposure cannot exceed 50.0 percent of its total assets, or $ 1.916 billion, based on the borrowing limitations outlined in the FHLB of New York’s member products guide. The total credit exposure limit of 50.0 percent of total assets is recalculated each quarter.
(12) Incorporated by reference to Appendix A to the proxy statement for the Company’s Annual Meeting of Shareholders (File No. 000-50275), filed by the Company with the Securities and Exchange Commission on Schedule 14A on March 28, 2011.
(7) Incorporated by reference to Appendix A to the proxy statement for the Company’s Annual Meeting of Shareholders (File No. 000-50275), filed by the Company with the Securities and Exchange Commission on Schedule 14A on March 28, 2011.
Under this classification system, problem assets are classified as “substandard,” “doubtful,” or “loss.” When the Company classifies problem assets, the Company may establish general allowances for loan losses in an amount deemed prudent by management.
Under this classification system, problem assets are classified as “substandard,” “doubtful,” or “loss.” When the Company classifies problem assets, the Company may establish general allowances for credit losses in an amount deemed prudent by management.
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO in 2013.
Amortization expense of the core deposit intangibles was $ 49,000 and $ 57,000 for the years ended December 31, 2022 and December 31, 2021, respectively. The unamortized balance of the core deposit intangibles and the amount of goodwill at December 31, 2022 was $ 129,000 and $ 5.2 million, respectively.
Amortization expense of the core deposit intangibles was $ 129,000 , $ 49,000 and $ 57,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The unamortized balance of the core deposit intangibles and the amount of goodwill at December 31, 2023 was $ 0 and $ 5.2 million, respectively.
As of December 31, 2022, management assessed the effectiveness of the Company’s internal control over financial reporting based upon the framework established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
As of December 31, 2023, management assessed the effectiveness of the Company’s internal control over financial reporting based upon the framework established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
The Notes qualify as Tier 2 capital for the Company for regulatory purposes 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.
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.
As of December 31, 2022, the Company was 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. ‎ 66 Table of Contents Note 18 - Fair Value Measurements and Fair Values of Financial Instruments Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique.
As of December 31, 2023, the Company was 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. ‎ 65 Table of Contents Note 18 - Fair Value Measurements and Fair Values of Financial Instruments Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated March 9, 2023 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 and our report dated March 8, 2024 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
Based upon its assessment, management believes that the Company’s internal control over financial reporting as of December 31, 2022 is effective and meets the criteria of the Internal Control – Integrated Framework (2013) .
Based upon its assessment, management believes that the Company’s internal control over financial reporting as of December 31, 2023 is effective and meets the criteria of the Internal Control – Integrated Framework (2013) .
Long Treasury Bond Index. i) Intermediate term core bond portfolios invest primarily in investment grade U.S. fixed-income issues including government, corporate, and securitized debt, and hold less than 5% in below-investment grade exposures. 60 Table of Contents Note 12 - Benefits Plan (continued) The Company does not expect to contribute, based upon actuarial estimates, to the Pension Plan in 2023.
Long Treasury Bond Index. i) Intermediate term core bond portfolios invest primarily in investment grade U.S. fixed-income issues including government, corporate, and securitized debt, and hold less than 5% in below-investment grade exposures. 59 Table of Contents Note 12 - Benefits Plan (continued) The Company does not expect to contribute, based upon actuarial estimates, to the Pension Plan in 2024.
The cost of the benefit is being amortized over a three-year vesting period beginning in 2021. In 2022, the Bank recorded compensation expense of $ 328,000 related to the Plan. The anticipated expense for the years ended December 31, 2023 and December 31, 2024 is $ 350,000 and $ 45,000 , respectively.
The cost of the benefit is being amortized over a three-year vesting period beginning in 2021. The Bank recorded compensation expense of $ 350,000 and $ 328,000 related to the Plan during the years ended December 31, 2023 and 2022, respectively. For each of the years ended December 31, 2024 and 2025, the anticipated expense is $ 45,000 .
(13) Incorporated by reference to Appendix A to the proxy statement for the Company’s Annual Meeting of Stockholders by the Company with the Securities and Exchange Commission on March 26, 2018. (14) Incorporated by reference to Exhibit 10.1 to the Form 8-K filed with the Securities and Exchange Commission on January 3, 2022.
(8) Incorporated by reference to Appendix A to the proxy statement for the Company’s Annual Meeting of Stockholders by the Company with the Securities and Exchange Commission on March 26, 2018. (9) Incorporated by reference to Exhibit 10.1 to the Form 8-K filed with the Securities and Exchange Commission on January 3, 2022.
(2) Includes non-accrual loans which are immaterial to the yield. (3) Includes Federal Home Loan Bank of New York stock. (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
(2) Includes nonaccrual loans which are immaterial to the yield. (3) Includes Federal Home Loan Bank of New York stock. (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
The Bank is a New Jersey commercial bank which, as of December 31, 2022, operated at 27 locations in Bayonne, Edison, Fairfield, Hoboken, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, South Orange, River Edge, Rutherford, Union, and Woodbridge New Jersey, as well as Staten Island and Hicksville, New York and is subject to regulation, supervision, and examination by the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation.
The Bank is a New Jersey based commercial bank which, as of December 31, 2023, operated at 28 locations in Bayonne, Edison, Fairfield, Hoboken, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, South Orange, River Edge, Rutherford, Union, and Woodbridge New Jersey, as well as Staten Island and Hicksville, New York and is subject to regulation, supervision, and examination by the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation.
ITEM 5. MA RKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information The Company’s common stock trades on the Nasdaq Global Market under the symbol “BCBP.” Stockholders. At March 1, 2023, the Company had approximately 5,000 stockholders of record. Recent Sales of Unregistered Securities None.
ITEM 5. MA RKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information The Company’s common stock trades on the Nasdaq Global Market under the symbol “BCBP.” Stockholders. At March 1, 2024, the Company had approximately 5,500 stockholders of record. Recent Sales of Unregistered Securities None.
The unamortized balance of the core deposit intangibles and the amount of goodwill at December 31, 2021 was $ 178,000 and $ 5.2 million, respectively. 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.
The unamortized balance of the core deposit intangibles and the amount of goodwill at December 31, 2022 was $ 129,000 and $ 5.2 million, respectively. 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.
(2) Includes home equity lines of credit. ‎ 53 Table of Contents Note 5 - Loans Receivable and Allowance for Loan Losses (continued) Criticized and Classified Assets The Company’s policies provide for a classification system for problem assets.
(2) Includes home equity lines of credit. ‎ 51 Table of Contents Note 5 - Loans Receivable and Allowance for Credit losses (continued) Criticized and Classified Assets The Company’s policies provide for a classification system for problem assets.
The following tables set forth the Pension Plan's funded status at December 31, 2022 and 2021 and components of net periodic pension cost for the years ended December 31, 2022 and 2021: Change in Benefit Obligation: December 31, 2022 2021 (In Thousands) Benefit obligation, beginning of year $ 6,492 $ 8,194 Interest cost 178 201 Actuarial (gain) loss ( 1,362 ) ( 929 ) Benefits paid ( 363 ) ( 459 ) Lump sum distributions ( 10 ) ( 515 ) Benefit obligation, ending $ 4,935 $ 6,492 Change in Plan Assets: Fair value of assets, beginning of year $ 7,144 $ 7,112 Actual return on plan assets ( 806 ) 1,006 Benefits paid ( 363 ) ( 459 ) Lump sum distributions ( 10 ) ( 515 ) Fair value of assets, ending $ 5,965 $ 7,144 Reconciliation of Funded Status: Projected benefit obligation $ 4,935 $ 6,492 Fair value of assets 5,965 7,144 Funded (unfunded) status, included in other liabilities, net $ 1,030 $ 652 Valuation assumptions used to determine benefit obligation at period end: Discount rate 5.02 % 2.83 % Salary increase rate N/A N/A Net Periodic Pension Expense: December 31, 2022 2021 (In Thousands) Interest cost $ 178 $ 201 Expected return on assets ( 417 ) ( 413 ) Amortization of net loss 66 635 Net Periodic Pension Cost and Settlements $ ( 173 ) $ 423 Valuation assumptions used to determine net periodic benefit cost for the year: Discount rate 2.83 % 2.52 % Long term rate of return on plan assets 6.00 % 6.00 % Salary increase rate N/A N/A At December 31, 2022 and December 31, 2021, unrecognized net losses of $ 559,000 and $ 707,000 , respectively, were included, net of deferred income tax, in accumulated other comprehensive loss in accordance with ASC 715-20 and ASC 715-30. ‎ 58 Table of Contents Note 12 - Benefits Plan (continued) Plan Assets Investment Policies and Strategies The primary long-term objective for the Pension Plan is to maintain assets at a level that will sufficiently cover future beneficiary obligations.
The following tables set forth the Pension Plan's funded status at December 31, 2023, 2022 and 2021 and components of net periodic pension cost for the years ended December 31, 2023, 2022 and 2021: Change in Benefit Obligation: December 31, 2023 2022 2021 (In Thousands) Benefit obligation, beginning of year $ 4,935 $ 6,492 $ 8,194 Interest cost 238 178 201 Actuarial gain ( 25 ) ( 1,362 ) ( 929 ) Benefits paid ( 346 ) ( 363 ) ( 459 ) Lump sum distributions - ( 10 ) ( 515 ) Benefit obligation, ending $ 4,802 $ 4,935 $ 6,492 Change in Plan Assets: Fair value of assets, beginning of year $ 5,965 $ 7,144 $ 7,112 Actual return on plan assets 393 ( 806 ) 1,006 Benefits paid ( 346 ) ( 363 ) ( 459 ) Lump sum distributions - ( 10 ) ( 515 ) Fair value of assets, ending $ 6,012 $ 5,965 $ 7,144 Fair value of assets $ 6,012 $ 5,965 $ 7,144 Projected benefit obligation 4,802 4,935 6,492 Funded status, included in other liabilities, net $ 1,210 $ 1,030 $ 652 Valuation assumptions used to determine benefit obligation at period end: Discount rate 4.83 % 5.02 % 2.83 % Salary increase rate N/A N/A N/A Net Periodic Pension Expense: December 31, 2023 2022 2021 (In Thousands) Interest cost $ 238 $ 178 $ 201 Expected return on assets ( 346 ) ( 417 ) ( 413 ) Amortization of net loss 55 66 635 Net periodic pension cost (benefit) $ ( 53 ) $ ( 173 ) $ 423 Valuation assumptions used to determine net periodic cost (benefit) cost for the year: Discount rate 5.02 % 2.83 % 2.52 % Long term rate of return on plan assets 6.00 % 6.00 % 6.00 % Salary increase rate N/A N/A N/A At December 31, 2023, 2022 and December 31, 2021, unrecognized net losses of $ 580,000 , $ 559,000 and $ 707,000 , respectively, were included, net of deferred income tax, in accumulated other comprehensive loss in accordance with ASC 715-20 and ASC 715-30. ‎ 57 Table of Contents Note 12 - Benefits Plan (continued) Plan Assets Investment Policies and Strategies The primary long-term objective for the Pension Plan is to maintain assets at a level that will sufficiently cover future beneficiary obligations.
The effect of the extinguishment of the debt reduced the weighted average cost of FHLB borrowings by approximately 16 basis points on an annualized basis. The related expense for the extinguishment of this debt is included in noninterest expense.
The effect of the extinguishment of the debt reduced the weighted average cost of FHLB borrowings by approximately 16 basis points on an annualized basis. The related expense for the extinguishment of this debt is included in non-interest expense.
During 2022 and 2021, the Bank paid the Company total dividends of $ 22,338,000 and $ 15,885,000 , respectively. The Company’s ability to declare dividends is dependent upon the amount of dividends paid to the Company by the Bank.
During 2023, 2022 and 2021, the Bank paid the Company total dividends of $ 20,580,000 , $ 22,338,000 and $ 15,885,000 , respectively. The Company’s ability to declare dividends is dependent upon the amount of dividends paid to the Company by the Bank.
Note 2 - Summary of Significant Accounting Policies Basis of Consolidated Financial Statement Presentation The consolidated financial statements which include the accounts of the Company and its wholly-owned subsidiaries, the Bank, the New Jersey Investment Company, Special Asset REO 1, LLC, and Special Asset REO 2, LLC have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”).
Note 2 - Summary of Significant Accounting Policies Basis of Consolidated Financial Statement Presentation The consolidated financial statements which include the accounts of the Company and its wholly-owned subsidiaries, the Bank, the New Jersey Investment Company, BCB Capital Finance Group LLC, and Special Asset REO 2, LLC have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”).
In many cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan. 49 Table of Contents Note 5- Loans Receivable and Allowance for Loan Losses (continued) The following tables set forth the activity in the Bank’s allowance for loan losses and recorded investment in loans receivable at December 31, 2022 and December 31, 2021.
In many cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan. ‎ 48 Table of Contents Note 5- Loans Receivable and Allowance for Credit losses (continued) The following tables set forth the activity in the Bank’s allowance for credit losses and recorded investment in loans receivable at December 31, 2023 and December 31, 2022.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Wolf & Company, P.C .
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Impaired Loans (Generally Carried at Fair Value) Impaired loans are those for which the Company has measured and recorded an impairment generally 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.
Individually Evaluated Loans (Generally Carried at Fair Value) Individually evaluated loans are those for which the Company has measured and recorded an ACL generally 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.
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 other correspondent banks.
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 Federal Reserve Bank Discount Window, the FHLB and other correspondent banks.
Note 10 – 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 ten-year term and bear interest at a fixed annual rate of 5.625 percent for the first five years of the term (the "Fixed Interest Rate Period").
Note 10 – 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").
Years Ended December 31, 2022 2021 Stock Option Expense $ 216 $ 230 Restricted Stock Expense 916 187 Total share-based compensation expense $ 1,132 $ 417 The following is a summary of the status of the Company’s restricted shares as of December 31, 2022.
Years Ended December 31, 2023 2022 2021 Stock Option Expense $ 133 $ 216 $ 230 Restricted Stock Expense 460 916 187 Total share-based compensation expense $ 593 $ 1,132 $ 417 The following is a summary of the status of the Company’s restricted shares as of December 31, 2023.
Loans are generally placed on non-accrual status when they become more than 90 days delinquent, or when the collection of principal and/or interest become doubtful.
Loans are generally placed on nonaccrual status when they become more than 90 days delinquent, or when the collection of principal and/or interest become doubtful.
For the Year Ended December 31, 2022 2021 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount (In Thousands, Except per share data) Net income $ 45,579 $ 34,240 Basic earnings per share- Income available to Common stockholders $ 44,783 16,969 $ 2.64 $ 33,080 17,063 $ 1.94 Effect of dilutive securities: Stock options 380 176 Diluted earnings per share- Income available to Common stockholders $ 44,783 17,349 $ 2.58 $ 33,080 17,239 $ 1.92 Stock-Based Compensation Plans The Company, under plans approved by its stockholders in 2018 and 2011, has granted stock options to employees and outside directors.
For the Year Ended December 31, 2023 2022 2021 Net Income Shares Per Share Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount (In Thousands, Except per share data) Net income $ 29,483 $ 45,579 $ 34,240 Basic earnings per share- Income available to Common stockholders $ 28,781 16,870 $ 1.71 $ 44,783 16,969 $ 2.64 $ 33,080 17,063 $ 1.94 Effect of dilutive securities: Stock options 62 380 176 Diluted earnings per share- Income available to Common stockholders $ 28,781 16,932 $ 1.70 $ 44,783 17,349 $ 2.58 $ 33,080 17,239 $ 1.92 Stock-Based Compensation Plans The Company, under plans approved by its stockholders in 2018 and 2011, has granted stock options to employees and outside directors.
Years Ended December 31, 2022 2021 (In Thousands) Federal income tax expense at statutory rate $ 13,253 $ 10,134 Increases in income taxes resulting from: State income tax , net of federal income tax effect 4,878 4,684 Tax-exempt income ( 63 ) ( 45 ) Bank-owned life insurance earnings ( 561 ) ( 620 ) Other items, net 24 ( 135 ) Effective Income Tax Expense $ 17,531 $ 14,018 Effective Income Tax Rate 27.8 % 29.0 % Note 17- Commitments and Contingencies The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.
Years Ended December 31, 2023 2022 2021 (In Thousands) Federal income tax expense at statutory rate $ 8,706 $ 13,253 $ 10,134 Increases in income taxes resulting from: State income tax , net of federal income tax effect 3,704 4,878 4,684 Tax-exempt income ( 30 ) ( 63 ) ( 45 ) Bank-owned life insurance earnings ( 368 ) ( 561 ) ( 620 ) Other items, net ( 40 ) 24 ( 135 ) Effective Income Tax Expense $ 11,972 $ 17,531 $ 14,018 Effective Income Tax Rate 28.9 % 27.8 % 29.0 % Note 17- Commitments and Contingencies The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.
The rent is $ 8,000 per month and lease payments of $ 96,000 and $ 96,000 were made in the years 2022 and 2021, which is reflected in the Consolidated Statements of Operations within occupancy expense. The Bank expects to pay $ 96,000 in rental expense for the year 2023.
The rent is $ 8,240 per month and lease payments of $ 97,000 , $ 96,000 and $ 96,000 were made in the years 2023, 2022 and 2021, which is reflected in the consolidated statements of operations within occupancy expense. The Bank expects to pay $ 98,880 in rental expense for the year 2024.
Wolf and Company, P.C., the independent registered public accounting firm that audited the Company’s consolidated financial statements, has issued an audit report on the Company’s internal control over financial reporting as of December 31, 2022 that appears in Item 8 of this Form 10-K. IT EM 9B. OTHER INFORMATION None IT EM 9C.
Wolf and Company, P.C., the independent registered public accounting firm that audited the Company’s consolidated financial statements, has issued an audit report on the Company’s internal control over financial reporting as of December 31, 2023 that appears in Item 8 of this Form 10-K. IT EM 9B. OTHER INFORMATION (a) Kenneth G.
Auditor ID: 392 Boston, Massachusetts March 9, 2023 32 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors of BCB Bancorp, Inc.
Auditor ID: 392 Boston, Massachusetts March 8, 2024 32 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors of BCB Bancorp, Inc.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.
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 loan 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: Beginning Balance, December 31, 2021 $ 4,094 $ 22,065 $ 2,231 $ 8,000 $ 533 $ 14 $ 182 $ 37,119 Charge-offs: - - - ( 2,095 ) - - - ( 2,095 ) Recoveries: 23 - - 191 12 198 - 424 Provision (credit): ( 1,643 ) ( 316 ) ( 137 ) ( 729 ) ( 60 ) ( 188 ) ( 2 ) ( 3,075 ) Ending Balance, December 31, 2022 $ 2,474 $ 21,749 $ 2,094 $ 5,367 $ 485 $ 24 $ 180 $ 32,373 Ending Balance attributable to loans: Individually evaluated for impairment $ 196 $ - $ 518 $ 2,066 $ 4 $ - $ $ 2,784 Collectively evaluated for impairment 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 for impairment $ 5,147 $ 15,397 $ 3,180 $ 3,821 $ 727 $ - $ - $ 28,272 Collectively evaluated for impairment 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.
Residential Commercial & Multi-family Construction Commercial Business (1) Home Equity (2) Consumer Unallocated Total Allowance for credit losses: Beginning Balance, December 31, 2021 $ 4,094 $ 22,065 $ 2,231 $ 8,000 $ 533 $ 14 $ 182 $ 37,119 Charge-offs: - - - ( 2,095 ) - - - ( 2,095 ) Recoveries: 23 - - 191 12 198 - 424 Provision (benefit): ( 1,643 ) ( 316 ) ( 137 ) ( 729 ) ( 60 ) ( 188 ) ( 2 ) ( 3,075 ) Ending Balance, December 31, 2022 $ 2,474 $ 21,749 $ 2,094 $ 5,367 $ 485 $ 24 $ 180 $ 32,373 Ending Balance attributable to loans: Individually evaluated for impairment $ 196 $ - $ 518 $ 2,066 $ 4 $ - $ - $ 2,784 Collectively evaluated for impairment 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 for impairment $ 5,147 $ 15,397 $ 3,180 $ 3,821 $ 727 $ - $ - $ 28,272 Collectively evaluated for impairment 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.
Based on the above considerations, the following asset allocation ranges will be implemented: Asset Allocation Parameters by Asset Class Minimum Target Maximum Equity Large-Cap U.S. 38 % Mid/Small-Cap U.S. 16 % Non-U.S. 1 % Total-Equity 40 % 55 % 60 % Fixed Income Long/Short Duration 44 % Money Market/Certificates of Deposit 1 % Total-Fixed Income 40 % 45 % 60 % The parameters for each asset class provide the trustee with the latitude for managing the Pension Plan within a minimum and maximum range.
Based on the above considerations, the following asset allocation ranges will be implemented: Asset Allocation Parameters by Asset Class Minimum Target Maximum Equity Large-Cap U.S. 42 % Mid/Small-Cap U.S. 11 % Non-U.S. 26 % Total-Equity 40 % 55 % 60 % Fixed Income Long/Short Duration 43 % Money Market/Certificates of Deposit 2 % Total-Fixed Income 40 % 45 % 60 % The parameters for each asset class provide the trustee with the latitude for managing the Pension Plan within a minimum and maximum range.
Outstanding loan related commitments were as follows: December 31, 2022 2021 (In Thousands) Loan origination commitments $ 165,579 $ 67,392 Standby letters of credit 3,701 3,309 Construction loans in process 96,905 84,195 Unused lines of credit 218,865 114,779 $ 485,050 $ 269,675 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.
Outstanding loan related commitments were as follows: December 31, 2023 2022 2021 (In Thousands) Loan origination commitments $ 975 $ 165,579 $ 67,392 Standby letters of credit 13,353 3,701 3,309 Construction loans in process 63,395 96,905 84,195 Unused lines of credit 235,329 218,865 114,779 $ 313,052 $ 485,050 $ 269,675 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.
The Company continues to service the loans, collects cash payments from the borrowers, remits payments (net of servicing fees), and disburses required escrow funds to relevant parties. 47 Table of Contents Note 5 - Loans Receivable and Allowance for Loan Losses (continued) At December 31, 2022 and 2021, loans serviced by the Bank for the benefit of others totaled approximately $ 159.3 million and $ 196.3 million, respectively.
The Company continues to service the loans, collects cash payments from the borrowers, remits payments (net of servicing fees), and disburses required escrow funds to relevant parties. ‎ 47 Table of Contents Note 5 - Loans Receivable and Allowance for Credit losses (continued) At December 31, 2023 and 2022, loans serviced by the Bank for the benefit of others totaled $ 135.4 million and $ 159.3 million, respectively.
As of December 31, 2022, non-accrual loans differed from the amount of total loans past due greater than 90 days due to troubled debt restructuring of loans, loans 90 days past due but still accruing interest, or loans that were previously 90 days past due both of which are maintained on non-accrual status for a minimum of six months until the borrower has demonstrated their ability to satisfy the terms of the loan.
As of December 31, 2023, nonaccrual loans differed from the amount of total loans past due greater than 90 days due to loans 90 days past due but still accruing interest or loans that were previously 90 days past due both of which are maintained on nonaccrual status for a minimum of six months until the borrower has demonstrated their ability to satisfy the terms of the loan.
A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.
An entity's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that the receipts and expenditures of the entity are being made only in accordance with authorizations of management and those charged with governance; and (3) provide reasonable assurance regarding prevention, or timely detection and correction, of unauthorized acquisition, use, or disposition of the entity's assets that could have a material effect on the financial statements.
Management performed a qualitative assessment of goodwill and determined there was no impairment as of December 31, 2022. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses.
Management performed a quantitative assessment of goodwill and determined there was no impairment as of December 31, 2023. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for credit losses.
(17) Incorporated by reference to Exhibit 10.12 to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2022. (18) Incorporated by reference to Exhibit 10.13 to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2022.
(10) Incorporated by reference to Exhibit 10.11 to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2022. (11) Incorporated by reference to Exhibit 10.12 to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2022.
At December 31, 2022 and 2021 loans with carrying values of approximately $ 1.2 billion and $ 733.3 million, respectively, were pledged to secure the above noted Federal Home Loan Bank of New York borrowings. No securities were pledged for borrowings at December 31, 2022 and 2021.
At December 31, 2023 and 2022, loans with carrying values of approximately $ 1.7 billion and $ 1.2 billion, respectively, were pledged to secure the above noted Federal Home Loan Bank of New York borrowings. No securities were pledged for borrowings at December 31, 2023 and 2022.
On January 26, 2023 , the Company declared a cash dividend of $ 0.16 per share and was paid to stockholders on February 17, 2023 , with a record date of February 3, 2023 . ITE M 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable. I TEM 9A.
On January 25, 2024 , the Company declared a cash dividend of $ 0.16 per share and was paid to stockholders on February 16, 2024 , with a record date of February 2, 2024 . ITE M 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable. I TEM 9A.
Dividends The Company has declared and paid cash dividends of $0.16 in each quarter for the year ended December 31, 2022. The payment of dividends to shareholders of the Company is dependent on the Bank paying dividends to the Company.
Dividends The Company declared and paid cash dividends of $0.16 per share in each quarter for the year ended December 31, 2023. The payment of dividends to shareholders of the Company is dependent on the Bank paying dividends to the Company.
As of December 31, 2022, the 2011 Stock Option Plan has expired. 25 Table of Contents Common Stock Performance Graph Set forth hereunder is a stock performance graph comparing (a) the cumulative total return on the common stock for the period beginning with the closing sales price on December 31, 2017 through December 31, 2022, (b) the cumulative total return on all publicly traded commercial bank stocks over such period, as repriced on the SNL Banks Index, and (c) the cumulative total return of the Nasdaq Market Index over such period.
As of December 31, 2023, the 2011 Stock Option Plan and the 2018 Equity Incentive Plan have expired. 23 Table of Contents Common Stock Performance Graph Set forth hereunder is a stock performance graph comparing (a) the cumulative total return on the common stock for the period beginning with the closing sales price on December 31, 2018 through December 31, 2023, (b) the cumulative total return on all publicly traded commercial bank stocks over such period, as repriced on the SNL Banks Index, and (c) the cumulative total return of the Nasdaq Market Index over such period.
The following sets forth the Company’s NPV as of December 31, 2022.
The following sets forth the Company’s NPV as of December 31, 2023.
For assets and liabilities measured at fair value on a recurring basis, the fair value measurements, by level, within the fair value hierarchy are as follows: (Level 1) (Level 2) Quoted Prices in Significant (Level 3) Active Markets Other Significant for Identical Observable Unobservable Description Total Assets Inputs Inputs (In Thousands) As of December 31, 2022: Securities Available for Sale Debt Securities Available for Sale $ 91,715 $ - $ 91,715 $ - Marketable Equities 17,686 17,686 - - Total Securities Available for Sale $ 109,401 $ 17,686 $ 91,715 $ - As of December 31, 2021: Securities Available for Sale Debt Securities Available for Sale $ 85,186 $ - $ 85,186 $ - Marketable Equities 25,187 25,187 - - Total Securities Available for Sale $ 110,373 $ 25,187 $ 85,186 $ - For assets and liabilities measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy are as follows: (Level 1) (Level 2) Quoted Prices in Significant (Level 3) Active Markets Other Significant for Identical Observable Unobservable Description Total Assets Inputs Inputs (In Thousands) As of December 31, 2022: Impaired loans $ 5,587 $ - $ - $ 5,587 Other real estate owned $ 75 $ - $ - $ 75 As of December 31, 2021: Impaired loans $ 14,796 $ - $ - $ 14,796 Other real estate owned $ 75 $ - $ - $ 75 Certain impaired loans were adjusted to the fair value, less costs to sell, of the underlying collateral securing these loans resulting in losses.
For assets measured at fair value on a recurring basis, the fair value measurements, by level, within the fair value hierarchy are as follows: (Level 1) (Level 2) Quoted Prices in Significant (Level 3) Active Markets Other Significant for Identical Observable Unobservable Description Total Assets Inputs Inputs (In Thousands) As of December 31, 2023: Securities Available-for-Sale Debt Securities Available-for-Sale $ 87,769 $ - $ 87,769 $ - Marketable Equities 9,093 9,093 - - Total Securities Available-for-Sale $ 96,862 $ 9,093 $ 87,769 $ - As of December 31, 2022: Securities Available for Sale Debt Securities Available-for-Sale $ 91,715 $ - $ 91,715 $ - Marketable Equities 17,686 17,686 - - Total Securities Available-for-Sale $ 109,401 $ 17,686 $ 91,715 $ - As of December 31, 2021: Securities Available for Sale Debt Securities Available-for-Sale $ 85,186 $ - $ 85,186 $ - Marketable Equities 25,187 25,187 - - Total Securities Available-for-Sale $ 110,373 $ 25,187 $ 85,186 $ - For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy are as follows: (Level 1) (Level 2) Quoted Prices in Significant (Level 3) Active Markets Other Significant for Identical Observable Unobservable Description Total Assets Inputs Inputs (In Thousands) As of December 31, 2023: Individually Evaluated Loans $ 23,585 $ - $ - $ 23,585 As of December 31, 2022: Individually Evaluated Loans $ 5,587 $ - $ - $ 5,587 Other real estate owned $ 75 $ - $ - $ 75 Certain individually evaluated loans were adjusted to the fair value, less costs to sell, of the underlying collateral securing these loans resulting in losses.
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.
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.
The following are some of the factors: 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; and incorporation of qualitative factors not captured within the modeled results.
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 Company repurchased 198,976 shares during the year ended December 31, 2022. 57 Table of Contents Note 12- Benefits Plans Pension Plan The Company acquired, through the merger with Pamrapo Bancorp, Inc. a non-contributory defined benefit pension plan (“Pension Plan”) covering all eligible employees of Pamrapo Savings Bank.
The Company repurchased 266,753 shares during the year ended December 31, 2023. ‎ 56 Table of Contents Note 12- Benefits Plans Pension Plan The Company acquired, through the merger with Pamrapo Bancorp, Inc. a non-contributory defined benefit pension plan (“Pension Plan”) covering all eligible employees of Pamrapo Savings Bank.
Reciprocal deposits are not considered brokered deposits under applicable regulations. 55 Table of Contents Note 9 - Short-Term Debt and Long-Term Debt Information regarding short-term borrowings is as follows: December 31, 2022 2021 Amount Amount ( In Thousands) Balance at end of period $ 60,000 $ - Average balance outstanding during the year $ 1,313 $ 48 Highest month-end balance during the year $ 87,000 $ - Average interest rate during the year 3.13 % 0.50 % Weighted average interest rate at year-end 4.61 % - % Long-term debt consists of the following: December 31, 2022 2021 Weighted Average Rate Amount ($000s) Weighted Average Rate Amount ($000s) Federal Home Loan Bank Advances: Maturing by December 31, 2023 4.85 % 250,000 - - 2024 0.48 18,000 0.48 18,000 2025 1.84 44,261 1.84 43,711 2026 0.65 10,000 0.65 10,000 4.07 % $ 322,261 1.39 % $ 71,711 FHLB advances are presented net of unamortized prepayment penalties totaling $ 1.5 million at December 31, 2022, and $ 2.1 million at December 31, 2021.
Reciprocal deposits are not considered brokered deposits under applicable regulations. 54 Table of Contents Note 9 - Short-Term Debt and Long-Term Debt Information regarding short-term borrowings is as follows: December 31, 2023 2022 Amount Amount ( In Thousands) Balance at end of period $ - $ 60,000 Average balance outstanding during the year $ 60,941 $ 1,313 Highest month-end balance during the year $ 350,000 $ 87,000 Average interest rate during the year 5.25 % 3.13 % Weighted average interest rate at year-end - % 4.61 % Long-term debt consists of the following: December 31, 2023 2022 Weighted Average Rate Amount ($000s) Weighted Average Rate Amount ($000s) Federal Home Loan Bank Advances: Maturing by December 31, 2023 - % $ - % $ 250,000 2024 0.48 18,000 0.48 18,000 2025 4.15 219,811 1.84 44,261 2026 4.53 235,000 0.65 10,000 4.21 % $ 472,811 4.07 % $ 322,261 FHLB advances are presented net of unamortized prepayment penalties totaling $ 988,000 at December 31, 2023, $ 1.5 million at December 31, 2022 and $ 2.1 million at December 31, 2021.
(the “New Jersey Investment Company”) was organized in January 2005 under New Jersey law as a New Jersey investment company primarily to hold investment and mortgage-backed securities. As a part of the merger with IA Bancorp, Inc., the Company acquired Special Asset REO 1, LLC and Special Asset REO 2, LLC, both of which were inactive at December 31, 2022.
(the “New Jersey Investment Company”) was organized in January 2005 under New Jersey law as a New Jersey investment company primarily to hold investment and mortgage-backed securities. As a part of the merger with IA Bancorp, Inc., the Company acquired Special Asset REO 1, LLC and Special Asset REO 2, LLC.
Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Costs relating to development and improvement of property are capitalized, whereas costs relating to the holding of property are expensed. At December 31, 2022, the Bank owned one property totaling $ 75,000 .
Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Costs relating to development and improvement of property are capitalized, whereas costs relating to the holding of property are expensed. At December 31, 2023 the Bank owned no properties.

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