BCB Bancorp, Inc., Bayonne, NJ (NASDAQ: BCBP) announced an increase in net earnings of $10.58 million or 282.1% to $14.33 million for the year ended December 31, 2010 from $3.75 million for the year ended December 31, 2009. Basic and diluted earnings per share were $2.06 and $2.05, respectively, for the year ended December 31, 2010 as compared to $0.81 and $0.80, respectively, for the year ended December 31, 2009. The weighted average number of common shares outstanding for the year ended December 31, 2010 for basic and diluted earnings per share calculations was 6,698,000 and 6,983,000 respectively. The weighted average number of shares outstanding for the year ended December 31, 2009 for basic and diluted earnings per share calculation purposes was 4,655,000 and 4,676,000.

Unless specified otherwise, the increase in the categories detailed in the balance sheet occurred primarily as a result of the acquisition of Pamrapo Bancorp, Inc. Total assets increased by $475.4 million or 75.3% to $1.107 billion at December 31, 2010 from $631.5 million at December 31, 2009. Total cash and cash equivalents increased by $53.8 million or 79.9% to $121.1 million at December 31, 2010 from $67.3 million at December 31, 2009. Securities held-to-maturity increased by $33.0 million or 24.9% to $165.6 million at December 31, 2010 from $132.6 million at December 31, 2009. Loans receivable increased by $371.2 million or 92.4% to $773.1 million at December 31, 2010 from $401.9 million at December 31, 2009. Deposit liabilities increased by $422.6 million or 91.1% to $886.3 million at December 31, 2010 from $463.7 million at December 31, 2009. Total stockholders’ equity increased by $47.6 million or 92.6% to $99.0 million at December 31, 2010 from $51.4 million at December 31, 2009. The increase in stockholders’ equity occurred primarily as a result of the common stock issued in conjunction with the business combination transaction with Pamrapo Bancorp, Inc., totaling $38.6 million. Additionally, the increase in stockholders’ equity reflects net income of $14.3 million for the year ended December 31, 2010 and the exercise of stock options during the year to purchase 13,677 shares of the Company’s common stock for a total of approximately $73,000, partially offset by the repurchase of 193,383 shares of the Company’s common stock in the stock repurchase plans in place and undertaken during the year totaling $1.8 million and cash dividends paid to shareholders during the year totaling $3.4 million.

Net income increased by $10.58 million or 282.1% to $14.33 million for the year ended December 31, 2010 from $3.75 million for the year ended December 31, 2009. The increase in net income resulted primarily from increases in net interest income and non-interest income and a decrease in income tax expense, partially offset by increases in non-interest expense and the provision for loan losses.

Net interest income increased by $7.0 million or 36.1% to $26.4 million for the year ended December 31, 2010 from $19.4 million for the year ended December 31, 2009. The increase in net interest income resulted primarily from an increase in the average balance of interest earning assets of $266.8 million or 44.6% to $865.6 million for the year ended December 31, 2010 from $598.8 for the year ended December 31, 2009, partially offset by a decrease in the average yield on interest earning assets to 4.63% for the year ended December 31, 2010 from 5.74% for the year ended December 31, 2009. As previously indicated, the increase in the average balance of interest earning assets is primarily attributable to the acquisition of Pamrapo Bancorp, Inc. The decrease in average yield reflects the competitive price environment prevalent in the Bank’s primary market area on loan facilities as well as the repricing downward of certain rates on loan facilities tied to variable indicies, consistent with the decrease in the prime lending rate through the reduction in rates resulting from the FOMC’s philosophy of easing market rates. Further, as the average yield on the loans and investments acquired in the business combination transaction with Pamrapo Bancorp Inc., were less than that of BCB Bancorp, Inc., as a stand-alone institution, the combination of both portfolios decreased the composite yield accordingly. The average balance of interest bearing liabilities increased by $227.4 million or 43.3% to $752.4 million at December 31, 2010 from $525.0 million at December 31, 2009 while the average cost of interest bearing liabilities decreased to 1.82% for the year ended December 31, 2010 from 2.86% for the year ended December 31, 2009. As a result of the aforementioned, our net interest margin decreased to 3.05% for the year ended December 31, 2010 from 3.24% for the year ended December 31, 2009. The decrease in the average cost reflects the Company’s reaction to the lower short term interest rate environment and our ability to reduce our pricing on a select number of retail deposit products. The increase in the balance of average interest bearing liabilities is primarily attributable to the completion of the acquisition of Pamrapo Bancorp, Inc.

Donald Mindiak, President & CEO commented, “with the successful completion of the Pamrapo transaction behind us, the goal of extracting the necessary synergies of efficiencies has begun. The extension of our business model and footprint has provided us the challenge and opportunity of increasing market share while continuing to remain true to our core precepts of increasing franchise and shareholder value. As a result of the merger, a gain on bargain purchase enhanced operating performance resulting in an increase in earnings per share to $2.06 and $2.05 basic and diluted from $0.81 and $0.80, respectively for 2009. Since asset quality remains the most critical component of management’s focus, loan loss provision accruals were increased over prior year by $900,000, to $2.45 million, reflecting management’s assessment of possible and estimable losses on our portfolio. The increase in the allowance also reflects management’s review of the strength of the local economy during the current recession.”

Mr. Mindiak continued, “The Board of Directors, unanimously declared a quarterly cash dividend of $0.12/share, payable on Friday, February 18, 2010, consistent with our prior quarter’s amount. The payment of cash dividends represents the Board’s philosophy of providing our shareholders’ with a competitive return on their investment. We are proud to have paid continuing cash dividends for the past sixteen quarters. As financial institutions continue to manage the intricacies of this challenging operating environment, we will continue to research and explore initiatives that have the capacity of increasing franchise and shareholder value.”

BCB Community Bank presently operates ten offices, six located in Bayonne, two in Hoboken, one in Jersey City and one in Monroe Township, New Jersey.

Questions regarding the content of this release should be directed to either Donald Mindiak, President & CEO, or Kenneth Walter, Chief Financial 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.

Consolidated Statements of Financial Condition
 
  December 31,  
2010

 
2009

(In Thousands, except for share data and per share data)

Assets
 
Cash and amounts due from depository institutions $ 22,065 $ 3,587
Interest-earning deposits 99,062 63,760  
 
Cash and Cash Equivalents 121,127 67,347
 
Securities available for sale 1,098 1,346
Securities held to maturity, fair value $166,785 and $133,050
Respectively 165,572 132,644
Loans held for sale 5,572 4,275

Loans receivable, net of allowance for loan losses of $8,417 and$6,644 respectively
773,101 401,872
Premises and equipment 11,359 5,359
Property held for sale 1,017 -
Federal Home Loan Bank of New York stock 6,723 5,714
Interest receivable 5,203 3,799
Real Estate Owned 3,602 1,270
Deferred income taxes 5,785 3,618
Other assets 6,729 4,259  
 
Total Assets $1,106,888 $631,503  
 

Liabilities and Stockholders’ Equity
 

Liabilities
Non-interest bearing deposits $69,471 $37,082
Interest bearing deposits 816,817 426,656  
 
Total deposits 886,288 463,738  
 
Long-term debt 114,124 114,124
Other liabilities 7,502 2,250  
 
Total Liabilities 1,007,914 580,112  
 
Stockholders’ Equity

Common stock, stated value $0.064; 20,000,000 shares authorized;10,144,830 and 5,195,658 shares, respectively, issued
649 332
Paid-in capital 85,327 46,926
Treasury stock, at cost, 761,135 and 537,752 shares, respectively (10,760 ) (8,719 )
Retained earnings 23,753 12,839
Accumulated other comprehensive (loss) income 5 13  
 
Total Stockholders’ Equity 98,974 51,391  
 
Total Liabilities and Stockholders’ Equity $1,106,888 $631,503  

Consolidated Statements of Income
Years Ended December 31,  
2010     2009   2008  
(In Thousands, Except for Per Share Data)

Interest Income
Loans $34,502 $27,349 $27,248
Securities 5,481 6,982 9,185
Other interest-earning assets 117   47 190  
 
Total Interest Income 40,100   34,378 36,623  
 

Interest Expense
Deposits:

Demand
938 877 1,046
Savings and club 1,304 1,157 1,370
Certificates of deposit 6,220   7,984 9,106  
 
8,462 10,018 11,522
Borrowed money 5,206   4,976 5,141  
 
Total Interest Expense 13,668   14,994 16,663  
 
Net Interest Income 26,432 19,384 19,960
 
Provision for Loan Losses 2,450   1,550 1,300  
 
Net Interest Income after Provision for Loan Losses 23,982   17,834 18,660  
 

Non-Interest Income
Fees and service charges 1,260 657 689
Gain on sales of loans originated for sale 295 225 137
(Loss) Gain on sale of real estate owned (345 ) 13 1
Other than temporary impairment on security - - (2,915 )
Gain on bargain purchase 12,582 - -
Other 70   36 34  
 
Total Non-Interest (Loss) Income 13,862   931 (2,054 )
 

Non-Interest Expenses
Salaries and employee benefits 10,785 5,403 5,492
Occupancy expense of premises 1,932 1,122 1,059
Equipment 3,293 2,124 2,019
Professional Fees 780 465 319
Director Fees 553 395 351
Regulatory Assessments 1,204 1,137 296
Advertising 336 273 241
Merger related expenses 644 648 172
Loss on overdrafts - - 560
Other 2,486   2,826 805  
 
Total Non-Interest Expenses 22,013   12,396 11,314  
 
Income before Income Taxes 15,831 6,639 5,292
 
Income Taxes 1,505   2,621 1,820  
 
Net Income $14,326   $3,748 $3,472  
 
Net Income per Common Share
Basic $2.06   $0.81 $0.75  
Diluted $2.05   $0.80 $0.74  
 
Weighted Average Number of Common Shares Outstanding
Basic 6,968   4,655 4,629  

Diluted
6,983   4,676 4,706  

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