BCB Bancorp, Inc., Announces Increase in Annual Earnings

  BCB Bancorp, Inc., Announces Increase in Annual Earnings

Business Wire

BAYONNE, N.J. -- January 31, 2014

BCB Bancorp, Inc., Bayonne, NJ (NASDAQ: BCBP – News) announced 2013 year end
net income of $9.4 million for the year ended December 31, 2013 as compared to
a loss of $2.1million for the year ended December 31, 2012. Basic and diluted
earnings per share were $1.06 for the year ended December 31, 2013 compared
with a $(0.23) loss per share for the year ended December 31, 2012. The
weighted average number of common shares outstanding for the year ended
December 31, 2013 for basic and diluted earnings per share calculations was
approximately 8,397,000 and 8,402,000, respectively. The weighted average
number of common shares outstanding for the year ended December 31, 2012 for
basic and diluted earnings per share calculations was approximately 8,943,000
and 8,943,000, respectively.

Total assets increased by $36.6 million or 3.1% to $1.208 billion at December
31, 2013 from $1.171 billion at December31, 2012. Total cash and cash
equivalents decreased by $4.3 million or 12.6% to $29.8 million at
December31, 2013 from $34.1 million at December31, 2012. Investment
securities classified as held-to-maturity decreased by $50.4 million or 30.6%
to $114.2 million at December31, 2013 from $164.6 million at December31,
2012. Loans receivable, net increased by $98.0 million or 10.6% to $1.02
billion at December31, 2013 from $922.3 million at December31, 2012.
Deposits increased by $27.9 million or 3.0% to $968.7 million at December 31,
2013 from $940.8 million at December31, 2012. Short-term borrowings increased
by $1.0 million or 5.9% to $18.0 million at December 31, 2013 compared with
$17.0 million at December 31, 2012. Long-term borrowings remained constant at
$114.1 million at December 31, 2013 and 2012, respectively. Stockholders’
equity increased by $8.5 million or 9.3% to $100.1 million at December31,
2013 from $91.6 million at December31, 2012.

Net income was $9.4 million for the year ended December 31, 2013 compared with
a net loss of $2.1 million for year ended December 31, 2012. The loss
sustained in the fiscal year ended December 31, 2012 resulted primarily from
the sale of approximately $25.9 million in non-performing loans during the
second and third quarter of 2012. These sales resulted in a pre-tax loss of
$10.8 million. The primary reason for this transaction was the elimination of
carrying and legacy costs associated with these non-interest earning assets.
Additionally, the return to net income was due to increases in net interest
income and total non-interest income along with decreases in total
non-interest expense and provision for loan losses, partially offset by an
increase in income tax provision.

Net interest income increased by $5.1 million or 12.2% to $46.8 million for
the year ended December 31, 2013 from $41.7 million for the year ended
December 31, 2012. The increase in net interest income resulted primarily from
an increase in the average yield on interest earning assets of thirty-four
basis points to 4.97% for the year ended December 31, 2013 from 4.63% for the
year ended December 31, 2012, partially offset by a slight decrease in the
average balance of interest earning assets of $4.6 million or 0.4% to $1.153
billion for the year ended December 31, 2013 from $1.158 billion for the year
ended December 31, 2012. The increased yield on assets was the result of an
improved asset mix which saw increased loan balances and decreased balances of
investment securities and interest-earning cash. The average balance of
interest bearing liabilities decreased by $30.0 million or 3.0% to $974.7
million for the year ended December 31, 2013 from $1.004 billion for the year
ended December 31, 2012, while the average cost of interest bearing
liabilities decreased by ten basis points to 1.09% for the year ended December
31, 2013 from 1.19% for the year ended December 31, 2012. As a consequence of
the aforementioned, our net interest margin increased by forty-six basis
points to 4.06% for the year ended December 31, 2013 from 3.60% for the year
ended December 31, 2012.

Total non-interest income was $3.4 million for the year ended December 31,
2013 compared with a loss of $7.2 million for the year ended December 31,
2012. Total non-interest income during 2013 benefitted primarily from a
decrease of $10.3 million in loss on bulk sale of impaired loss held in
portfolio to a loss of $474,000 for the year ended December 31, 2013 from a
loss of $10.8 million for the year ended December 31, 2012.

Total non-interest expense decreased by $2.5 million or 7.4% to $31.4 million
for the year ended December 31, 2013 from $33.9 million for the year ended
December 31, 2012. Expense reductions occurred in occupancy expense,
professional fees, director fees, regulatory assessments, OREO expense and
other non-interest expense, partially offset by increases in salary and
employee benefits, equipment, and advertising.

Donald Mindiak, Chief Executive Officer commented, “Our earnings and earnings
per share were both positively impacted as a result of the successful
implementation of several initiatives executed during 2012. An asset
re-allocation initiative coupled with the sale of a significant portion of our
non-performing loan portfolio resulted in the redeployment of the cash
proceeds into yielding instruments. Net loan balances increased by $98.0
million or 10.6% to $1.02 billion at December 31, 2013 as compared to $922.3
million at December 31, 2012. As a result of this increase in net loans,
interest income on loans increased by $5.7 million or 11.9% to $53.5 million
for the year ended December 31, 2013 from $47.8 million for the year ended
December 31, 2012. As a result of the aforementioned, we were able to realize
an increase in our net interest spread to 3.89% at December 31, 2013 as
compared to 3.45% at December 31, 2012, and an increase in our net interest
margin to 4.06% at December 31, 2013 as compared to 3.60% at December 31,
2012. Additionally, cost containment efforts in several areas such as
occupancy, professional fees, director fees, regulatory assessments, OREO
expense and other non-interest expense provided a positive impact in reducing
total non-interest expense by approximately $2.5 million or 7.4% to $31.4
million for the year ended December 31, 2013 from $33.9 million for the year
ended December 31, 2012.”

“Efforts to raise capital in both 2012 and 2013 proved successful as a total
of $12.6 million in additional capital was raised as a way to provide the
Company the ability to continue to grow and strengthen our balance sheet and
explore initiatives which may have the capacity to increase franchise and
shareholder value.”

BCB Community Bank presently operates ten full service offices in Bayonne,
Hoboken, Jersey City, Monroe Township and South Orange and an office of the
Bank of Woodbridge, a division of BCB Community Bank, in Woodbridge, New
Jersey.

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

Forward-looking Statements and Associated Risk Factors

This release, like many written and oral communications presented by BCB
Bancorp, Inc., (the “Company”) 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)
                                                    
                                              December 31,        December 31,
                                              2013                2012
                                                                  
ASSETS
Cash and amounts due from                     $  10,847           $  6,242
depository institutions
Interest-earning deposits                       18,997             27,905
Total cash and cash                             29,844             34,147
equivalents
                                                                  
Interest-earning time                            990                 986
deposits
Securities available for sale                    1,104               1,240
Securities held to maturity, fair value $115,158 and
$171,603,
respectively                                     114,216             164,648
Loans held for sale                              1,663               1,602
Loans receivable, net of allowance for loan losses of
$14,342 and
$12,363, respectively                            1,020,344           922,301
Federal Home Loan Bank of New                    7,840               7,698
York stock, at cost
Premises and equipment, net                      13,853              13,568
Interest receivable                              4,157               4,063
Other real estate owned                          2,227               3,274
Deferred income taxes                            9,942               10,053
Other assets                                    1,779              7,778
Total Assets                                  $  1,207,959        $  1,171,358
                                                                  
LIABILITIES AND STOCKHOLDERS'
EQUITY
                                                                  
LIABILITIES
Non-interest bearing                          $  107,613          $  85,950
deposits
Interest bearing deposits                       861,057            854,836
Total deposits                                   968,670             940,786
Short-term Borrowings                            18,000              17,000
Long-term Debt                                   114,124             114,124
Other Liabilities                               7,105              7,867
Total Liabilities                               1,107,899          1,079,777
                                                                  
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000,000 shares
authorized,
issued and outstanding 1,266 shares of Series A and B 6% noncumulative
perpetual
preferred stock (liquidation                     -                   -
value $10,000 per share)
Additional paid-in capital                       12,556              8,570
preferred stock
Common stock; $0.064 stated value; 20,000,000 shares
authorized,
issued 10,861,129 and 10,841,079 shares at December 31, 2013 and
2012;
outstanding 8,331,750 shares
and 8,496,508 shares,                            694                 694
respectively
Additional paid-in capital                       92,064              91,846
common stock
Treasury stock, at cost,
2,529,379 and 2,344,571                          (29,093)            (27,177)
shares, respectively
Retained earnings                                23,710              18,883
Accumulated other                               129                (1,235)
comprehensive income (loss)
Total Stockholders' equity                      100,060            91,581
                                                                  
Total Liabilities and                         $  1,207,959        $  1,171,358
Stockholders' equity
                                                                     


BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Income (loss)
(In Thousands, except for per share amounts, Unaudited)
                                                     
                                 Year Ended
                                 December 31,
                                 2013          2012           2011
                                                                    
Interest
income:
Loans                            $ 53,521         $ 47,756          $ 45,023
Investments,                       3,737            5,730             7,720
taxable
Investments,                       49               49                49
non-taxable
Other
interest-earning                  52             112             87     
assets
Total interest                    57,359         53,647          52,879 
income
                                                                    
Interest
expense:
Deposits:
Demand                             444              564               849
Savings and                        363              477               1,020
club
Certificates of                   4,795          5,849           6,421  
deposit
                                   5,602            6,890             8,290
                                                                    
Borrowed money                    4,978          5,057           5,007  
                                                                    
Total interest                    10,580         11,947          13,297 
expense
                                                                    
Net interest                       46,779           41,700            39,582
income
Provision for                     2,750          4,900           4,100  
loan losses
                                                                    
Net interest
income, after                     44,029         36,800          35,482 
provision for loan
losses
                                                                    
Non-interest
income (loss):
Fees and service                   1,822            1,595             846
charges
Gain on sales of
loans originated                   1,529            1,220             887
for sale
Gain on sale of                    -                286               -
loans acquired
Loss on bulk sale
of impaired loans                  (474   )         (10,804 )         -
held in portfolio
Loss on property                   -                -                 (124   )
held for sale
Loss on
write-down of                      -                -                 (592   )
fixed assets
Gain on sale of
securities held to                 378              349               18
maturity
Gain on bargain                    -                -                 1,162
purchase
Other                             120            129             251    
Total
non-interest                      3,375          (7,225  )        2,448  
income (loss)
                                                                    
Non-interest
expense:
Salaries and                       15,691           15,017            12,680
employee benefits
Occupancy expense                  3,516            3,558             3,039
of premises
Equipment                          5,207            4,907             4,301
Professional                       2,250            2,490             1,287
fees
Director fees                      672              728               689
Regulatory                         1,096            1,172             1,181
assessments
Advertising                        583              484               399
Merger related                     -                -                 538
expenses
Other real                         46               1,936             1,204
estate owned
Other                             2,376          3,597           3,188  
Total
non-interest                      31,437         33,889          28,506 
expense
                                                                    
Income (loss)
before income tax                  15,967           (4,314  )         9,424
provision
Income tax
provision                         6,551          (2,252  )        3,373  
(benefit)
                                                                    
Net Income                       $ 9,416          $ (2,062  )       $ 6,051
(loss)
Preferred stock                   559            -               -      
dividends
Net Income (loss)
available to                     $ 8,857         $ (2,062  )       $ 6,051  
common
stockholders
                                                                    
                                                                    
Net Income (loss) per common share-basic
and diluted
Basic                            $ 1.06          $ (0.23   )       $ 0.64   
Diluted                          $ 1.06          $ (0.23   )       $ 0.64   
                                                                    
Weighted average number of common shares
outstanding
Basic                             8,397          8,943           9,417  
Diluted                           8,402          8,943           9,433  

Contact:

BCB Bancorp, Inc.
Donald Mindiak, 201-823-0700
Chief Executive Officer
or
Thomas Coughlin, 201-823-0700
President & Chief Operating Officer
 
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