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

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

Business Wire

BAYONNE, N.J. -- July 24, 2014

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              $ 8,776         $  10,847
institutions
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,           9,284            7,840
at cost
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,              697              694
respectively, issued and outstanding
Additional paid-in capital common stock             92,395           92,064
Retained earnings                                   26,008           23,710
Accumulated other comprehensive (loss)              (466)            129
income
Treasury stock, at cost, 2,530,263 and             (29,105)        (29,093)
2,529,379 shares, respectively
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        $  13,881        $  13,246      $  27,562     $ 26,239
fees
Investments,               878              928            1,793        1,989
taxable
Investments,               13               12             25           25
non-taxable
Other
interest-earning          11              13            24           24
assets
Total interest            14,783          14,199        29,404       28,277
income
                                                                        
Interest expense:
Deposits:
Demand                     127              107            248          210
Savings and club           91               91             182          177
Certificates of           1,049           1,192         2,141        2,441
deposit
                           1,267            1,390          2,571        2,828
Borrowed money            1,272           1,241         2,525        2,464
Total interest            2,539           2,631         5,096        5,292
expense
                                                                        
Net interest               12,244           11,568         24,308       22,985
income
Provision for             450             600           1,450        1,800
loan losses
                                                                        
Net interest
income after              11,794          10,968        22,858       21,185
provision for
loan losses
                                                                        
Non-interest
income:
Fees and service           528              479            1,032        903
charges
Gain on sales of
loans originated           230              227            1,007        346
for sale
Gain on sales of
securities held            39               135            39           360
to maturity
Gain on sale of
securities                 1,223            -              1,223        -
available for
sale
Other                     18              40            37           56
Total
non-interest              2,038           881           3,338        1,665
income
                                                                        
Non-interest
expense:
Salaries and               5,042            3,719          9,503        7,186
employee benefits
Occupancy expense          964              866            1,944        1,679
of premises
Equipment                  1,341            1,282          2,698        2,448
Professional fees          533              568            1,023        1,027
Director fees              194              168            362          336
Regulatory                 282              278            534          543
assessments
Advertising                266              178            440          280
Other real estate          32               (32)           40           (116)
owned, net
Other                     812             562           1,478        1,109
Total
non-interest              9,466           7,589         18,022       14,492
expense
                                                                        
Income before
income tax                 4,366            4,260          8,174        8,358
provision
Income tax                1,736           1,707         3,309        3,395
provision
                                                                        
Net Income              $  2,630         $  2,553       $  4,865      $ 4,963
Preferred stock           204             130           397          260
dividends
Net Income
available to            $  2,426         $  2,423       $  4,468      $ 4,703
common
stockholders
                                                                        
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
                                                                        

Contact:

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