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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