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

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

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)

Large Accelerated Filer

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Accelerated Filer

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Non-Accelerated Filer

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Smaller Reporting Company   

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Emerging Growth Company

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Page

PART I. CONSOLIDATED FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Consolidated Statements of Financial Condition as of September 30, 2018 (unaudited) and December 31, 2017 (unaudited)

Consolidated Statements of Income for the three and nine months ended September 30, 2018 and 2017 (unaudited)

Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2018 and 2017 (unaudited)

Consolidated Statement of Changes in Stockholders’ Equity for the nine months ended September 30, 2018 and 2017 (unaudited)

Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and 2017 (unaudited)

Notes to Unaudited Consolidated Financial Statements

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Item 4. Controls and Procedures

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 3. Defaults Upon Senior Securities

Item 4. Mine Safety Disclosures

Item 5. Other Information

Item 6. Exhibits







September 30,

December 31,



2018

2017



ASSETS

Cash and amounts due from depository institutions

$

$

Interest-earning deposits

  Total cash and cash equivalents



Interest-earning time deposits

Debt securities available for sale

Equity investments

Loans held for sale

Loans receivable, net of allowance for loan losses

  of $21,504 and $17,375 respectively

Federal Home Loan Bank of New York stock, at cost

Premises and equipment, net

Accrued interest receivable

Other real estate owned

Deferred income taxes

Goodwill

 -

Other assets

   Total Assets

$

$



LIABILITIES AND STOCKHOLDERS' EQUITY



LIABILITIES

Non-interest bearing deposits

$

$

Interest bearing deposits

 Total deposits

FHLB advances

Subordinated debt

Other liabilities and accrued interest payable

   Total Liabilities



STOCKHOLDERS' EQUITY

Preferred stock: $0.01 par value, 10,000,000 shares authorized;

 issued and outstanding 7,807 shares of series C 6%, series D 4.5%, (liquidation value $10,000 per share)

 and series F 6% (liquidation value $1,000 per share) noncumulative perpetual preferred stock

 at September 30, 2018 and 1,342 shares of series C 6% and series D 4.5% (liquidation value $10,000 per share)

 noncumulative perpetual preferred stock at December 31, 2017

 -

 -

Additional paid-in capital preferred stock

Common stock: no par value; 20,000,000 shares authorized; issued 18,313,476 and 17,572,942

 at September 30, 2018 and December 31, 2017, respectively, outstanding 15,782,713 shares and

 15,042,179 shares, at September 30, 2018 and December 31, 2017, respectively

 -

 -

Additional paid-in capital common stock

Retained earnings

Accumulated other comprehensive (loss)

Treasury stock, at cost, 2,530,763 shares at September 30, 2018 and December 31, 2017

   Total Stockholders' Equity



    Total Liabilities and Stockholders' Equity

$

$









Three Months Ended September 30,

Nine Months Ended September 30,



2018

2017

2018

2017



Interest income:

 Loans, including fees

$

$

$

$

 Mortgage-backed securities

 Municipal bonds and other debt

 FHLB stock and other interest earning assets

    Total interest income



Interest expense:

 Deposits:

    Demand

    Savings and club

    Certificates of deposit



    Borrowings

      Total interest expense



Net interest income

Provision for loan losses



Net interest income after provision for loan losses



Non-interest income:

  Fees and service charges

  Gain on sales of loans

  Loss on bulk sale of impaired loans held in portfolio

 -

 -

 -

  Gain on sales of other real estate owned

  Gain on sale of investment securities

 -

 -

  Unrealized loss on equity investments

 -

 -

  Other

     Total non-interest income



Non-interest expense:

  Salaries and employee benefits

  Occupancy and equipment

  Data processing and service fees

  Professional fees

  Director fees

  Regulatory assessments

  Advertising and promotional

  Other real estate owned, net

  Merger related costs

 -

 -

  Other

     Total non-interest expense



Income before income tax provision

Income tax provision



Net Income

$

$

$

$

Preferred stock dividends

Net Income available to common stockholders

$

$

$

$



Net Income per common share-basic and diluted

Basic

$

$

$

$

Diluted

$

$

$

$



Weighted average number of common shares outstanding

Basic

Diluted





Three Months Ended September 30,

Nine Months Ended September 30,



2018

2017

2018

2017





Net Income

$

$

$

$

Other comprehensive (loss) income, net of tax:

Unrealized (losses) gains on available-for-sale debt securities:

Unrealized holding (losses) gains arising during the period

Tax Effect

Net of Tax Effect

 -

Other comprehensive (loss) income

Comprehensive income

$

$

$

$





Preferred Stock

Common Stock

Additional             Paid-In Capital

Retained Earnings

Treasury Stock

Accumulated Other Comprehensive Loss

Total



Balance at December 31, 2017

$

 -

$

 -

$

$

$

$

$



Acquisition of IA Bancorp

 -

 -

 -

 -

 -



Exercise of Stock Options (200 shares)

 -

 -

 -

 -

 -



Stock-based compensation expense

 -

 -

 -

 -

 -



Dividends payable on Series C 6%, Series D 4.5%, and Series F 6% noncumulative perpetual preferred stock

 -

 -

 -

 -

 -



Cash dividends on common stock ($0.14 per share declared)

 -

 -

 -

 -

 -



Dividend Reinvestment Plan

 -

 -

 -

 -

 -



Stock Purchase Plan

 -

 -

 -

 -

 -



Net income

 -

 -

 -

 -

 -



Reclassification of unrealized gains on AFS equity securities

 -

 -

 -

 -

 -



Other comprehensive loss

 -

 -

 -

 -

 -



Balance at September 30, 2018

$

 -

$

 -

$

$

$

$

$





Preferred Stock

Common Stock

Additional             Paid-In Capital

Retained Earnings

Treasury Stock

Accumulated Other Comprehensive Income (Loss)

Total



Balance at December 31, 2016

$

 -

$

 -

$

$

$

$

$



    Issuance of Common Stock



Redemption of Series A and B Preferred Stock

 -

 -

 -

 -

 -



Issuance of Series D Preferred Stock

 -

 -

 -

 -

 -



Exercise of Stock Options (200 shares)

 -

 -

 -

 -

 -



Stock-based compensation expense

 -

 -

 -

 -

 -



Treasury stock purchases

 -

 -

 -

 -



Dividends payable on Series C 6% and Series D 4.5% noncumulative perpetual preferred stock

 -

 -

 -

 -

 -



Cash dividends on common stock ($0.14 per share declared)

 -

 -

 -

 -

 -



Dividend Reinvestment Plan

 -

 -

 -

 -

 -



Stock Purchase Plan

 -

 -

 -

 -

 -



Net income

 -

 -

 -

 -

 -



Other comprehensive income

 -

 -

 -

 -

 -



Balance at September 30, 2017

$

 -

$

 -

$

$

$

$

$





Nine Months Ended September 30,



2018

2017

Cash Flows from Operating Activities :

  Net Income

$

$

  Adjustments to reconcile net income to net cash provided by operating activities:

        Depreciation of premises and equipment

        Amortization and accretion, net

        Provision for loan losses

        Deferred income tax (benefit)

        Loans originated for sale

        Proceeds from sales of loans

        Gain on sales of loans originated for sale

        Gains on sales of other real estate owned

        Gains on sales of securities available for sale

 -

        Fair value adjustment of OREO

 -

        Loss on equity investments

 -

        Loss on bulk sale of impaired loans held in portfolio

 -

        Stock-based compensation expense

        Increase in interest receivable

        (Increase) decrease in other assets

        Increase (decrease) in accrued interest payable

        Increase in other liabilities

Net Cash Provided by Operating Activities

Cash flows from investing activities:

        Proceeds from calls on securities available for sale

        Purchases of securities available for sale

        Proceeds from sales of other real estate owned

        Proceeds from bulk sale of impaired loans held

 -

        Proceeds from sales of securities available for sale

 -

        Net increase in loans receivable

        Additions to premises and equipment

        (Purchase) Redemption of Federal Home Loan Bank of New York stock

        Cash acquired in acquisition

 -

        Cash paid in acquisition

 -

Net Cash Used In Investing Activities

Cash flows from financing activities:

        Net increase in deposits

        Proceeds from Federal Home Loan Bank of New York advances

        Repayments of Federal Home Loan Bank of New York advances

        Net change in short-term debt

 -

        Purchases/adjustments of treasury stock

 -

        Cash dividends paid on common stock

        Cash dividends paid on preferred stock

        Net proceeds from issuance of common stock

        Net proceeds from issuance of preferred stock

 -

        Net payment on redemption of preferred stock

 -