BCB Bancorp, Inc., Bayonne, NJ (NASDAQ:BCBP) announced an increase in quarterly earnings of $290,000 or 45.9% to $922,000 for the three months ended June 30, 2010 from $632,000 for the three months ended June 30, 2009. Basic and diluted earnings per share were $0.20 for the three months ended June 30, 2010 as compared to $0.14 per share for the three months ended June 30, 2009. The Company further reported net earnings of $1.64 million for the six months ended June 30, 2010, as compared to $2.0 million for the six months ended June 30, 2009. Basic and diluted earnings per share were $0.35 for the six months ended June 30, 2010 from $0.43 for the six months ended June 30, 2009. The Board of Directors unanimously approved a cash dividend payment of $0.12 per common share for shareholders of record as of July 30, 2010, payable on August 16, 2010. The results of operations and discussion of our financial condition does not include the effects of our recent acquisition of Pamrapo Bancorp, Inc., which was completed on July 6, 2010.

Total assets increased by $20.1 million or 3.2% to $651.6 million at June 30, 2010 from $631.5 million at December 31, 2009. Total cash and cash equivalents increased by $52.5 million or 78.0% to $119.8 million at June 30, 2010 from $67.3 million at December 31, 2009. The increase in cash and cash equivalents reflects management’s decision to increase the Bank’s liquidity position while it determines where the best investment opportunities exist during a period of low interest rates and a weak economy. Investment securities classified as held-to-maturity decreased by $17.0 million or 12.8% to $115.6 million at June 30, 2010 from $132.6 million at December 31, 2009. Loans receivable decreased by $13.0 million or 3.2% to $388.9 million at June 30, 2010 from $401.9 million at December 31, 2009. Deposit liabilities increased by $20.4 million or 4.4% to $484.1 million at June 30, 2010 from $463.7 million at December 31, 2009. Stockholders’ equity increased by $481,000 or 1.0% to $51.9 million at June 30, 2010 from $51.4 million at December 31, 2009. The increase in stockholders’ equity is primarily attributable to net income of the Company for the six months ended June 30, 2010 of $1.64 million and a $31,000 increase resulting from the exercise of stock options for 5,844 shares, partially offset by the payment of two quarterly cash dividends totaling $1.1 million representing two $0.12 per share payments during the six months ended June 30, 2010, a $58,000 decrease in the market value of our available-for-sale securities portfolio, net of tax, and $12,000 paid to repurchase 1,311 shares of the Company’s common stock.

Net income increased by $290,000 or 45.9% to $922,000 for the three months ended June 30, 2010 from $632,000 for the three months ended June 30, 2009. The increase in net income was due to increases in net interest income and non-interest income and a decrease in non-interest expense, partially offset by an increase in income taxes. Net interest income increased by $355,000 or 8.2% to $4.69 million for the three months ended June 30, 2010 from $4.34 million for the three months ended June 30, 2009. This increase in net interest income resulted primarily from an increase of $29.1 million or 4.9% in the average balance of interest earning assets to $628.6 million for the three months ended June 30, 2010 from $599.5 million for the three months ended June 30, 2009, partially offset by a decrease in the yield on interest earning assets to 4.91% for the three months ended June 30, 2010 from 5.50% for the three months ended June 30, 2009. The average balance of interest bearing liabilities increased by $26.9 million or 5.1% to $552.4 million for the three months ended June 30, 2010 from $525.5 million for the three months ended June 30, 2009 and the average cost of interest bearing liabilities decreased by seventy-eight basis points to 2.19% for the three months ended June 30, 2010 from 2.97% for the three months ended June 30, 2009. As a consequence of the aforementioned, our net interest margin increased to 2.98% for the three months ended June 30, 2010 from 2.89% for the three months ended June 30, 2009.

Net income decreased by $355,000 or 17.8% to $1.64 million for the six months ended June 30, 2010 from $2.0 million for the six months ended June 30, 2009. The decrease in net income was due to an increase in non-interest expense and an increase in the provision for loan losses, partially offset by an increase in net interest income and non-interest income and a decrease in income taxes. Net interest income increased by $176,000 or 1.9% to $9.43 million for the six months ended June 30, 2010 from $9.26 million for the six months ended June 30, 2009. This increase in net interest income resulted primarily from a increase of $39.0 million or 6.7% in the average balance of interest earning assets to $625.6 million for the six months ended June 30, 2010 from $585.6 million for the six months ended June 30, 2009, partially offset by a decrease in the average yield on interest earning assets to 5.02% for the six months ended June 30, 2010 from 5.84% for the six months ended June 30, 2009. The average balance of interest bearing liabilities increased by $35.7 million or 7.0% to $549.3 million for the six months ended June 30, 2010 from $513.6 million for the six months ended June 30, 2009, while the average cost of interest bearing liabilities decreased to 2.27% for the six months ended June 30, 2010 from 3.06% for the six months ended June 30, 2009. As a consequence of the decrease in the average yield earned on our interest earning assets, and despite the increase in the balance of average interest earning assets, our net interest margin decreased to 3.02% for the six months ended June 30, 2010 from 3.16% for the six months ended June 30, 2009.

Donald Mindiak, President & CEO commented,” Net interest income for the three and six month periods ended June 30, 2010 recorded a gradual improvement as compared to the three and six month periods ended June 30, 2009. Additionally, the three month time period ended June 30, 2010 recorded a 45.9% increase in net income as compared to the three months ended June 30, 2009. The six month time period ended June 30, 2010 recorded a 17.8% decrease in net income as compared to the six months ended June 30, 2009, primarily as a result of increased merger related expenses.”

“I am pleased to report that the business combination transaction with Pamrapo Bancorp Inc., was completed on July 6, 2010. Over the next several months, staff, business and systems integration will be occurring to facilitate a seamless transition for both our customers and shareholders alike. We are diligently working to maximize the accretive nature of this transaction as expeditiously as is practicable. Lastly, the declaration and maintenance of our quarterly cash dividend at $0.12 per share reinforces the Board’s confidence in our ability to provide a competitive return on investment to all of our shareholders. We recently announced a 5% buyback program for our common stock which we view as an opportunity for our Company. We welcome the shareholders of Pamrapo Bancorp Inc., into the BCB Bancorp Inc., family of shareholders and look forward to the opportunity of enacting initiatives that have the potential of enhancing franchise and shareholder value.”

Questions regarding the content of this release should be directed to either Donald Mindiak, President & CEO, or Thomas Coughlin, COO 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 at
June 30, 2010 and December 31, 2009
(Unaudited)
(in thousands except for share data )
 
At At

30-Jun-10

31-Dec-09
 

ASSETS
 
Cash and amounts due from depository institutions $ 3,024 $ 3,587
Interest-earning deposits   116,758   63,760
Total cash and cash equivalents   119,782   67,347
 
Securities available for sale 1,248 1,346
Securities held to maturity, fair value $118,059 and $133,050
respectively 115,558 132,644
Loans held for sale 1,319 4,275
Loans receivable, net of allowance for loan losses of $6,797 and
$6,644 respectively 388,904 401,872
Premises and equipment 5,359 5,359
Federal Home Loan Bank of New York stock 5,702 5,714
Interest receivable, net 3,566 3,799
Other real estate owned 1,989 1,270
Deferred income taxes 3,718 3,618
Other assets   4,490   4,259
Total assets $ 651,635 $ 631,503
 

LIABILITIES AND STOCKHOLDERS' EQUITY
 

LIABILITIES
Non-interest bearing deposits $ 37,947 $ 37,082
Interest bearing deposits   446,145   426,656
Total deposits 484,092 463,738
Long-term Debt 114,124 114,124
Other Liabilities   1,547   2,250
Total Liabilities   599,763   580,112
 

STOCKHOLDERS' EQUITY
Common stock, stated value $0.064; 20,000,000 shares authorized;
5,201,502 and 5,195,658 shares, respectively, issued; 4,662,439 332 332
and 4,657,906 shares, respectively, outstanding
Additional paid-in capital 46,957 46,926
Treasury stock, at cost, 539,063 and 537,752 shares,
respectively (8,731) (8,719)
Retained Earnings 13,359 12,839
Accumulated other comprehensive income (loss)   (45)   13
Total stockholders' equity   51,872   51,391
 
Total liabilities and stockholders' equity $ 651,635 $ 631,503
 
   
BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Income
For the three and six months ended
June 30, 2010 and 2009
(Unaudited)
( in thousands except for per share data)
   
Three Months Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
 
Interest income:
Loans $ 6,369 $ 6,827 $ 12,806 $ 13,716
Securities 1,328 1,392 2,832 3,372
Other interest-earning assets   21   19   40   23
Total interest income   7,718   8,238   15,678   17,111
 
Interest expense:
Deposits:
Demand 176 205 388 403
Savings and club 238 279 510 576
Certificates of deposit   1,380   2,176   2,893   4,397
  1,794   2,660   3,791   5,376
 
Borrowed money   1,233   1,242   2,454   2,478
 
Total interest expense   3,027   3,902   6,245   7,854
 
Net interest income 4,691 4,336 9,433 9,257
Provision for loan losses   300   300   750   650
 
Net interest income after provision for loan losses   4,391   4,036   8,683   8,607
 
Non-interest income:
Fees and service charges 240 144 400 274
Gain on sales of loans originated for sale 56 86 128 128
Gain (loss) on sale of real estate owned (14) 5 (14) 5
Other   8   7   17   16
Total non-interest income   290   242   531   423
 
Non-interest expense:
Salaries and employee benefits 1,403 1,306 2,770 2,629
Occupancy expense of premises 273 282 560 546
Equipment 536 526 1,090 1,041
Professional Fees 61 101 193 184
Director Fees 108 125 214 190
Regulatory Assessments 189 477 362 550
Advertising 71 72 138 119
Merger related expenses 144 75 344 75
Other   380   223   763   439
Total non-interest expense   3,165   3,187   6,434   5,773
 
Income before income tax provision 1,516 1,091 2,780 3,257
Income tax provision   594   459   1,140   1,262
 
Net Income $ 922 $ 632 $ 1,640 $ 1,995
 
Net Income per common share-basic and diluted
basic $ 0.20 $ 0.14 $ 0.35 $ 0.43
diluted $ 0.20 $ 0.14 $ 0.35 $ 0.43
 
Weighted average number of common shares outstanding-
basic   4,663   4,653   4,662   4,651
diluted   4,678   4,676   4,678   4,677
 

Copyright Business Wire 2010

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