BCB Bancorp, Inc., Announces an Increase in Quarterly Cash Dividend and Quarterly Earnings

  BCB Bancorp, Inc., Announces an Increase in Quarterly Cash Dividend and
  Quarterly Earnings

Business Wire

BAYONNE, N.J. -- April 23, 2014

BCB Bancorp, Inc., Bayonne, NJ (NASDAQ:BCBP) announced net income of $2.2
million for the three months ended March 31, 2014 as compared to $2.4 million
for the three months ended March 31, 2013. Basic and diluted earnings per
share were $0.24 for the three months ended March 31, 2014 compared with $0.27
for the three months ended March 31, 2013. The weighted average number of
common shares outstanding for the three months ended March 31, 2014 for basic
and diluted earnings per share calculations was 8,340,000 and 8,342,000,
respectively. The weighted average number of common shares outstanding for the
three months ended March 31, 2013 for basic and diluted earnings per share
calculations was 8,492,000 and 8,494,000, respectively.

Total assets increased by $36.5 million or 3.0% to $1.244 billion at March 31,
2014 from $1.208 billion at December 31, 2013. Total cash and cash equivalents
decreased by $2.6 million or 8.8% to $27.2 million at March 31, 2014 from
$29.8 million at December 31, 2013. Investment securities classified as
held-to-maturity decreased by $3.5 million or 3.1% to $110.7 million at March
31, 2014 from $114.2 million at December 31, 2013. Loans receivable, net
increased by $40.5 million or 4.0% to $1.061 billion at March 31, 2014 from
$1.020 billion at December 31, 2013. Deposit liabilities increased by $23.3
million or 2.4% to $992.0 million at March 31, 2014 from $969.0 million at
December 31, 2013. The Company had $30.0 million in short term borrowings at
March 31, 2014 compared with $18.0 million at December 31, 2013. Long-term
borrowed money remained constant at $110.0 million at March 31, 2014 and
December 31, 2013. Stockholders’ equity increased by $2.1 million or 2.1% to
$102.1 million at March 31, 2014 from $100.0 million at December 31, 2013.

Net income decreased by $175,000 or 7.3% to $2.2 million for the three months
ended March 31, 2014 compared with net income of $2.4 million for three months
ended March 31, 2013. The decrease in net income was primarily due to an
increase in non-interest expenses, partially offset by increases in net
interest income, a decrease in the provision for loan losses, an increase in
non-interest income and a decrease in the income tax provision.

Net interest income increased by $647,000 or 5.7% to $12.1 million for the
three months ended March 31, 2014 from $11.4 million for the three months
ended March 31, 2013. The increase in net interest income resulted primarily
from an increase in the average balance of interest earning assets of $65.5
million or 5.8% to $1.198 billion for the three months ended March 31, 2014
from $1.132 billion for the three months ended March 31, 2013, partially
offset by a nine basis point decrease in the average yield on interest earning
assets to 4.88% for the three months ended March 31, 2014 from 4.97% for the
three months ended March 31, 2013. The average balance of interest bearing
liabilities increased by $26.4 million or 2.7% to $994.0 million for the three
months ended March 31, 2014 from $967.6 million for the three months ended
March 31, 2013, while the average cost of interest bearing liabilities
decreased by seven basis points to 1.03% for the three months ended March 31,
2014 from 1.10% for the three months ended March 31, 2013.

Total non-interest income increased by $516,000 or 65.8% to $1.3 million for
the three months ended March 31, 2014 from $784,000 for the three months ended
March 31, 2013. The increase in non-interest income primarily reflects an
increase in gain on sale of loans originated for sale, partially offset by a
decrease in gain on sale of securities held to maturity.

Total non-interest expense increased by $1.65 million or 23.9% to $8.6 million
for the three months ended March 31, 2014 from $6.9 million for the three
months ended March 31, 2013. Expense increases were incurred in certain areas
of the income statement which included salaries and benefits, occupancy
expense, equipment, advertising, REO expense and other non-interest expense.

Donald Mindiak, Chief Executive Officer, commented, “The successful capital
raises that we have engaged in over the last several years has 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 $129.7 million or 13.9% to $1.06 billion at March 31,
2014 as compared to $930.3 million at March 31, 2013. As a result of this
increase in net loans, interest income on loans increased by $689,000 or 5.3%
to $13.68 million for the three months ended March 31, 2014 from $12.99
million for the three months ended March 31, 2013. This increase in interest
income, coupled with a decrease of $103,000 or 3.9% in interest expense
resulted in a net interest spread of 3.85% and a net interest margin of 4.03%
at March 31, 2014.

Mr. Mindiak continued, “The Board of Directors unanimously declared a
quarterly cash dividend of $0.14/common share payable on Monday, May 19, 2014,
with a record date of May 7, 2014, an increase of $0.02/common share or 16.7%
as compared to our prior quarter’s amount. The increase of our quarterly cash
dividend is a testament to the prospective 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 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., 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)
                                                               
                                                                  
                                                    March 31,     December 31,
                                                    2014          2013
                                                                     
ASSETS
Cash and amounts due from depository institutions   $ 10,071      $  10,847
Interest-earning deposits                            17,158        18,997
Total cash and cash equivalents                      27,229        29,844
                                                                     
Interest-earning time deposits                        990            990
Securities available for sale                         1,316          1,104
Securities held to maturity, fair value $112,457
and $115,158,
respectively                                          110,732        114,216
Loans held for sale                                   2,289          1,663
Loans receivable, net of allowance for loan losses
of $14,646 and
$14,342, respectively                                 1,060,855      1,020,344
Federal Home Loan Bank of New York stock, at cost     8,380          7,840
Premises and equipment, net                           13,615         13,853
Accrued interest receivable                           4,102          4,157
Other real estate owned                               2,745          2,227
Deferred income taxes                                 9,855          9,942
Other assets                                         2,385         1,779
Total Assets                                        $ 1,244,493   $  1,207,959
                                                                     
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits                       $ 118,957     $  107,613
Interest bearing deposits                            873,048       861,057
Total deposits                                        992,005        968,670
Short-term Debt                                       30,000         18,000
Long-term Debt                                        110,000        110,000
Subordinated Debentures                               4,124          4,124
Other Liabilities                                    6,239         7,105
Total Liabilities                                    1,142,368     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 preference value         -              -
$10,000 per share, liquidation value $13,430,000)
Additional paid-in capital preferred stock            13,326         12,556
Common stock; $0.064 stated value; 20,000,000
shares authorized,
10,873,087 and 10,861,129 shares, respectively,
issued;
8,343,432 shares and 8,331,750 shares,                695            694
respectively, outstanding
Additional paid-in capital common stock               92,197         92,064
Retained earnings                                     24,751         23,710
Accumulated other comprehensive income                255            129
Treasury stock, at cost, 2,529,655 and 2,529,379     (29,099)      (29,093)
shares, respectively
Total Stockholders' Equity                           102,125       100,060
                                                                     
Total Liabilities and Stockholders' Equity          $ 1,244,493   $  1,207,959

BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Income

(In Thousands, except for per share amounts, Unaudited)
                                                               
                                                                       
                                                  Three Months Ended March 31,
                                                     2014            2013
                                                                       
Interest income:
Loans, including fees                             $   13,681       $   12,992
Investments, taxable                                  915              1,062
Investments, non-taxable                              12               12
Other interest-earning assets                        13              11
Total interest income                                14,621          14,077
                                                                       
Interest expense:
Deposits:
Demand                                                121              103
Savings and club                                      91               86
Certificates of deposit                              1,092           1,248
                                                      1,304            1,437
Borrowed money                                       1,253           1,223
Total interest expense                               2,557           2,660
                                                                       
Net interest income                                   12,064           11,417
Provision for loan losses                            1,000           1,200
                                                                       
Net interest income after provision for loan         11,064          10,217
losses
                                                                       
Non-interest income:
Fees and service charges                              504              424
Gain on sales of loans originated for sale            777              119
Gain on sale of securities held to maturity           -                224
Other                                                19              17
Total non-interest income                            1,300           784
                                                                       
Non-interest expense:
Salaries and employee benefits                        4,461            3,466
Occupancy expense of premises                         980              812
Equipment                                             1,357            1,166
Professional fees                                     490              459
Director fees                                         168              168
Regulatory assessments                                252              265
Advertising                                           174              102
Other real estate owned, net                          8                (84)
Other                                                666             550
Total non-interest expense                           8,556           6,904
                                                                       
Income before income tax provision                    3,808            4,097
Income tax provision                                 1,573           1,687
                                                                       
Net Income                                        $   2,235        $   2,410
Preferred stock dividends                            193             130
Net Income available to common stockholders       $   2,042        $   2,280
                                                                       
Net Income per common share-basic and diluted
Basic                                             $   0.24         $   0.27
Diluted                                           $   0.24         $   0.27
                                                                       
Weighted average number of common shares
outstanding
Basic                                                8,340           8,492
Diluted                                              8,342           8,494

Contact:

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