News Column

BCB Bancorp, Inc., Announces Net Income of $2.6 Million for Three Months Ended 6/30/2014

July 24, 2014

BAYONNE, N.J.--(BUSINESS WIRE)-- BCB Bancorp, Inc., (NASDAQ:BCBP) today announced net income of $2.6 million for the three months ended June 30, 2014, consistent with the three months ended June 30, 2013. Basic and diluted earnings per share were $0.29 for each three-month period ended June 30, 2014 and June 30, 2013, respectively. The weighted average number of common shares outstanding for the three months ended June 30, 2014 for basic and diluted earnings per share calculations was approximately 8,353,000 and 8,401,000, respectively. The weighted average number of common shares outstanding for the three months ended June 30, 2013 for basic and diluted earnings per share calculations was approximately 8,411,000 and 8,417,000, respectively.

Net income was $4.9 million for the six months ended June 30, 2014, compared to $5.0 million for the six months ended June 30, 2013. Basic and diluted earnings per share were $0.54 and $0.53, respectively, for the six months ended June 30, 2014, as compared to $0.56 for both measures for the six months ended June 30, 2013. The weighted average number of common shares outstanding for the six months ended June 30, 2014 for basic and diluted earnings per share calculations was approximately 8,346,000 and 8,396,000, respectively. The weighted average number of common shares outstanding for the six months ended June 30, 2013 for basic and diluted earnings per share calculations was approximately 8,446,000 and 8,450,000, respectively.

Total assets increased by $70.4 million, or 5.8%, to $1.278 billion at June 30, 2014, from $1.208 billion at December 31, 2013. Total cash and cash equivalents decreased by $5.5 million, or 18.5%, to $24.3 million at June 30, 2014 from $29.8 million at December 31, 2013. Investment securities classified as held-to-maturity decreased by $6.4 million, or 5.6%, to $107.8 million at June 30, 2014 from $114.2 million at December 31, 2013. Loans receivable, net increased by $75.9 million, or 7.4%, to $1.096 billion at June 30, 2014 from $1.020 billion at December 31, 2013. Deposit liabilities increased by $40.9 million, or 4.2%, to $1.010 billion at June 30, 2014 from $968.7 million at December 31, 2013. The Company had $45.5 million in short-term borrowings at June 30, 2014, compared with $18.0 million at December 31, 2013. Long-term borrowed money remained constant at $110.0 million at June 30, 2014 and December 31, 2013. Stockholders’ equity increased by $2.8 million, or 2.8%, to $102.9 million at June 30, 2014 from $100.1 million at December 31, 2013.

Net income was $2.6 million for each of the three-month periods ended June 30, 2014 and June 30, 2013. Net interest income and non-interest income both were higher in the current-year period, but were offset by higher non-interest expense in the current-year period.

Net interest income increased by $676,000, or 5.8%, to $12.2 million for the three months ended June 30, 2014 from $11.6 million for the three months ended June 30, 2013. The increase in net interest income resulted primarily from an increase in the average balance of interest-earning assets of $78.0 million, or 6.8%, to $1.224 billion for the three months ended June 30, 2014 from $1.146 billion for the three months ended June 30, 2013, partly offset by a decrease in the average yield on interest-earning assets of 13 basis points to 4.83% for the three months ended June 30, 2014 from 4.96% for the three months ended June 30, 2013. While yields on the individual components of interest-earning assets generally declined, the overall yield on interest-earning assets increased due to a reallocation of assets into higher yielding loans. The average balance of interest-bearing liabilities increased by $52.8 million, or 5.4%, to $1.023 billion for the three months ended June 30, 2014 from $970.6 million for the three months ended June 30, 2013, while the average cost of interest-bearing liabilities decreased by nine basis points to 0.99% for the three months ended June 30, 2014 from 1.08% for the three months ended June 30, 2013. The net results of these changes was a slight decline in net interest margin of four basis points to 4.00% for the three months ended June 30, 2014 from 4.04% for the three months ended June 30, 2013.

Total non-interest income increased by $1.2 million, or 131.3%, to $2.0 million for the three months ended June 30, 2014 from $881,000 for the three months ended June 30, 2013. The increase in non-interest income primarily reflects a gain on the sale of investment securities available for sale totaling $1.2 million within the three-month period ended June 30, 2014, with no comparable transaction occurring in the three-month period ended June 30, 2013.

Total non-interest expense increased by $1.9 million, or 24.7%, to $9.5 million for the three months ended June 30, 2014 from $7.6 million for the three months ended June 30, 2013. Expense increases were incurred in certain areas of the consolidated statements of income including salaries and benefits, occupancy expense, equipment, advertising, REO expense and other non-interest expense.

Net income was $4.9 million for the six months ended June 30, 2014 compared with $5.0 million for the six months ended June 30, 2013. Net interest income and non-interest income were both higher in the current-year period, but were more than offset by higher non-interest expenses in the current-year period.

Net interest income increased by $1.3 million, or 5.8%, to $24.3 million for the six months ended June 30, 2014 from $23.0 million for the six months ended June 30, 2013. The increase in net interest income resulted primarily from an increase in the average balance of interest-earning assets of $66.7 million, or 5.9%, to $1.206 billion for the six months ended June 30, 2014 from $1.139 billion for the six months ended June 30, 2013, partly offset by a decrease in the average yield on interest earning assets of nine basis points to 4.88% for the six months ended June 30, 2014 from 4.97% for the six months ended June 30, 2013. The average balance of interest bearing liabilities increased by $39.6 million, or 4.1%, to $1.009 billion for the six months ended June 30, 2014 from $969.4 million for the six months ended June 30, 2013, while the average cost of interest-bearing liabilities decreased by eight basis points to 1.01% for the six months ended June 30, 2014 from 1.09% for the six months ended June 30, 2013. Net interest margin was 4.03% for each of the six-month periods ended June 30, 2014 and June 30, 2013. The increase in the average yield of interest-earning assets and the decrease in the average cost of interest-bearing liabilities represents management’s efforts to competitively price certain products to enhance profitability, while maintaining competitive pricing with our peers. The decrease in the average balance of both interest-earning assets and interest bearing liabilities represents a pre-planned minor deleveraging of the balance sheet.

Total non-interest income increased by $1.7 million, or 100.5%, to $3.3 million for the six months ended June 30, 2014 from $1.7 million for the six months ended June 30, 2013. The increase in non-interest income primarily reflects a gain on the sale of investment securities available for sale totaling $1.2 million within the six-month period ended June 30, 2014, with no comparable transaction in the six-month period ended June 30, 2013, and an increase in gains on sales of loans originated for sale.

Total non-interest expense increased by $3.5 million or 24.4% to $18.0 million for the six months ended June 30, 2014 from $14.5 million for the three months ended June 30, 2013. Expense increases were incurred in certain areas of the consolidated statement of income including salaries and benefits, occupancy expense, equipment, advertising, REO expense and other non-interest expense.

Donald Mindiak, Chief Executive Officer of BCB Bancorp, Inc., commented, “The successful capital raises in which we have engaged over the last several years have provided us the capacity to leverage that capital and grow our balance sheet with increased levels of interest-earning assets. As a result of the aforementioned, net loan balances increased by $154.1 million, or 16.4%, to $1.096 billion at June 30, 2014, as compared to $942.1 million at June 30, 2013. In addition, interest income on loans increased by $1.3 million or 5.0% to $27.6 million for the six months ended June 30, 2014 from $26.3 million for the six months ended June 30, 2013. This increase in interest income, coupled with a decrease of $196,000 or 3.7% in interest expense, resulted in a net interest spread of 3.86% and a net interest margin of 4.03% for the six months ended June 30, 2014.

Mr. Mindiak continued, “The Board of Directors unanimously declared a quarterly cash dividend of $0.14 per common share payable on Monday, August 18, 2014, with a record date of August 6, 2014. The declaration and payment of our quarterly cash dividend is a testament to the confidence our Board has in our ability to deliver value and a competitive return to our shareholders while maintaining our standing as a well capitalized financial institution predicated upon all quantitative measurements promulgated by our regulatory agencies. We remain diligent in our exploration of corporate initiatives that we believe provide the opportunity for growth in both franchise and shareholder value.”

BCB Community Bank operates 12 full service offices in Bayonne, Hoboken, Jersey City, Monroe Township, South Orange, Woodbridge and Colonia.

Questions regarding the content of this release should be directed to either Donald Mindiak, President & Chief Executive Officer of BCB Bancorp or Thomas Coughlin, President & Chief Operating Officer of BCB Community Bank at (201) 823-0700.

Forward-looking Statements and Associated Risk Factors

This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions.

Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

There are a number of factors, many of which are beyond our control, that could cause actual conditions, events, or results to differ significantly from those described in our forward-looking statements. These factors include, but are not limited to: general economic conditions and trends, either nationally or in some or all of the areas in which we and our customers conduct our respective businesses; conditions in the securities markets or the banking industry; changes in interest rates, which may affect our net income, prepayment penalties and other future cash flows, or the market value of our assets; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services in the markets we serve; changes in the financial or operating performance of our customers’ businesses; changes in real estate values, which could impact the quality of the assets securing the loans in our portfolio; changes in the quality or composition of our loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; changes in our customer base; potential exposure to unknown or contingent liabilities of companies targeted for acquisition; our ability to retain key members of management; our timely development of new lines of business and competitive products or services in a changing environment, and the acceptance of such products or services by our customers; any interruption or breach of security resulting in failures or disruptions in customer account management, general ledger, deposit, loan or other systems; any interruption in customer service due to circumstances beyond our control; the outcome of pending or threatened litigation, or of other matters before regulatory agencies, or of matters resulting from regulatory exams, whether currently existing or commencing in the future; environmental conditions that exist or may exist on properties owned by, leased by, or mortgaged to the Company; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in legislation, regulation, and policies, including, but not limited to, those pertaining to banking, securities, tax, environmental protection, and insurance, and the ability to comply with such changes in a timely manner; changes in accounting principles, policies, practices, or guidelines; operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; the ability to keep pace with, and implement on a timely basis, technological changes; changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; war or terrorist activities; and other economic, competitive, governmental, regulatory, and geopolitical factors affecting our operations, pricing and services.

It also should be noted that the Company occasionally evaluates opportunities to expand through acquisition and may conduct due diligence activities in connection with such opportunities. As a result, acquisition discussions and, in some cases, negotiations, may take place in the future, and acquisitions involving cash, debt, or equity securities may occur. Furthermore, the timing and occurrence or non-occurrence of these events may be subject to circumstances beyond the Company’s control.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Except as required by applicable law or regulation, the Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

 

BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Financial Condition

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


         
 
June 30,December 31,
2014 2013
 
ASSETS
Cash and amounts due from depository institutions $8,776 $ 10,847
Interest-earning deposits   15,553   18,997
Total cash and cash equivalents   24,329   29,844
 
Interest-earning time deposits 990 990
Securities available for sale - 1,104
Securities held to maturity, fair value $110,750 and $115,158,
respectively 107,766 114,216
Loans held for sale 3,256 1,663
Loans receivable, net of allowance for loan losses of $14,952 and
$14,342, respectively 1,096,232 1,020,344
Federal Home Loan Bank of New York stock, at cost 9,284 7,840
Premises and equipment, net 13,420 13,853
Accrued interest receivable 4,086 4,157
Other real estate owned 3,295 2,227
Deferred income taxes 10,970 9,942
Other assets   4,747   1,779
Total Assets$1,278,375 $ 1,207,959
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
LIABILITIES
Non-interest bearing deposits $126,419 $ 107,613
Interest bearing deposits   883,122   861,057
Total deposits 1,009,541 968,670
Short-term Debt 45,500 18,000
Long-term Debt 110,000 110,000
Subordinated Debentures 4,124 4,124
Other Liabilities   6,355   7,105
Total Liabilities   1,175,520   1,107,899
 
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000,000 shares authorized,
issued and outstanding 1,343 shares of series A and B 6% noncumulative perpetual
preferred stock (liquidation value $10,000 per share) - -
Additional paid-in capital preferred stock 13,326 12,556
Common stock; $0.064 stated value; 20,000,000 shares authorized,
8,371,364 shares and 8,331,750 shares, respectively, issued and outstanding 697 694
Additional paid-in capital common stock 92,395 92,064
Retained earnings 26,008 23,710
Accumulated other comprehensive (loss) income (466) 129
Treasury stock, at cost, 2,530,263 and 2,529,379 shares, respectively   (29,105)   (29,093)
Total Stockholders' Equity   102,855   100,060
 
Total Liabilities and Stockholders' Equity$1,278,375 $ 1,207,959
 
 

BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Income

(In Thousands, except for per share amounts, Unaudited)


                 
 
Three Months Ended June 30,Six Months Ended June 30,
2014 2013 2014 2013
 
Interest income:
Loans, including fees $13,881 $ 13,246 $27,562 $ 26,239
Investments, taxable 878 928 1,793 1,989
Investments, non-taxable 13 12 25 25
Other interest-earning assets   11   13   24 24
Total interest income   14,783   14,199   29,404 28,277
 
Interest expense:
Deposits:
Demand 127 107 248 210
Savings and club 91 91 182 177
Certificates of deposit   1,049   1,192   2,141 2,441
1,267 1,390 2,571 2,828
Borrowed money   1,272   1,241   2,525 2,464
Total interest expense   2,539   2,631   5,096 5,292
 
Net interest income12,244 11,568 24,308 22,985
Provision for loan losses   450   600   1,450 1,800
 
Net interest income after provision for loan losses   11,794   10,968   22,858 21,185
 
Non-interest income:
Fees and service charges 528 479 1,032 903
Gain on sales of loans originated for sale 230 227 1,007 346
Gain on sales of securities held to maturity 39 135 39 360
Gain on sale of securities available for sale 1,223-1,223-
Other   18   40   37 56
Total non-interest income   2,038   881   3,338 1,665
 
Non-interest expense:
Salaries and employee benefits 5,042 3,719 9,503 7,186
Occupancy expense of premises 964 866 1,944 1,679
Equipment 1,341 1,282 2,698 2,448
Professional fees 533 568 1,023 1,027
Director fees 194 168 362 336
Regulatory assessments 282 278 534 543
Advertising 266 178 440 280
Other real estate owned, net 32 (32) 40 (116)
Other   812   562   1,478 1,109
Total non-interest expense   9,466   7,589   18,022 14,492
 
Income before income tax provision4,366 4,260 8,174 8,358
Income tax provision   1,736   1,707   3,309 3,395
 
Net Income$2,630 $ 2,553 $4,865 $ 4,963
Preferred stock dividends   204   130   397 260
Net Income available to common stockholders$2,426 $ 2,423 $4,468 $ 4,703
 
Net Income per common share-basic and diluted
Basic $0.29 $ 0.29 $0.54 $ 0.56
Diluted $0.29 $ 0.29 $0.53 $ 0.56
 
Weighted average number of common shares outstanding
Basic   8,353   8,411   8,346 8,446
Diluted   8,401   8,417   8,396 8,450
 





BCB Bancorp, Inc.

Donald Mindiak, 201-823-0700

President & Chief Executive Officer

or

Thomas Coughlin, 201-823-0700

President & Chief Operating Officer

Source: BCB Bancorp, Inc.


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