BCB Bancorp, Inc., Announces An Increase In Quarterly And Semi-Annual Earnings

BCB Bancorp, Inc., Bayonne, NJ (NASDAQ:BCBP – News) announced net income of $2.55 million for the three months ended June 30, 2013 compared with a net loss of $3.36 million for the three months ended June 30, 2012. Basic and diluted earnings per share were $0.29 for the three months ended June 30, 2013 as compared to a loss per share of ($0.37) for the three months ended June 30, 2012. 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. The weighted average number of common shares outstanding for the three months ended June 30, 2012 for basic and diluted earnings per share calculations was approximately 9,142,000 and 9,142,000 respectively. Net income was $5.0 million for the six months ended June 30, 2013 compared with a net loss of $1.8 million for the six months ended June 30, 2012. Basic and diluted earnings per share were $0.56 for the six months ended June 30, 2013 as compared to a loss per share of ($0.19) for the six months ended June 30, 2012. 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. The weighted average number of common shares outstanding for the six months ended June 30, 2012 for basic and diluted earnings per share calculations was approximately 9,289,000 and 9,289,000 respectively.

Total assets decreased to $1.167 billion at June 30, 2013 from $1.171 billion at December 31, 2012. Total cash and cash equivalents increased by $17.1 million or 50.1% to $51.2 million at June 30, 2013 from $34.1 million at December 31, 2012. The increase in total cash and cash equivalents was primarily due to sales of participation loans held in our portfolio which were sold at par in June 2013 for gross cash proceeds of $24.2 million. Investment securities classified as held-to-maturity decreased by $36.8 million or 22.4% to $127.8 million at June 30, 2013 from $164.6 million at December 31, 2012. Net loans receivable increased by $19.8 million or 2.2% to $942.1 million at June 30, 2013 from $922.3 million at December 31, 2012. Deposit liabilities increased by $11.2 million or 1.2% to $952.0 million at June 30, 2013 from $940.8 million at December 31, 2012. We had no short-term borrowed money at June 30, 2013 compared with $17.0 million in short-term borrowings at December 31, 2012. Long-term borrowed money remained constant at $114.1 million at June 30, 2013 and December 31, 2012, respectively. Stockholders’ equity increased by $1.7 million or 1.9% to $93.3 million at June 30, 2013 from $91.6 million at December 31, 2012. The increase in stockholders’ equity is primarily attributable to net income of $4.96 million offset by the Company repurchasing during the period 123,942 shares of the Company’s common stock at a cost of $1.3 million along with a cash dividend paid during the quarter totaling $2.0 million on common shares of stock.

Net income was $2.55 million for the three months ended June 30, 2013 compared with a net loss of $3.36 million for three months ended June 30, 2012. The return to net income for the Company reflects increases in total interest income and total non-interest income along with decreases in total interest expense, provision for loan losses and non-interest expense, partially offset by an increase in the income tax provision. Net interest income increased by $1.3 million or 12.9% to $11.6 million for the three months ended June 30, 2013 from $10.2 million for the three months ended June 30, 2012. The increase in net interest income resulted primarily from an increase in the average yield on interest earning assets of forty-three basis points to 4.96% for the three months ended June 30, 2013 from 4.53% for the three months ended June 30, 2012, partially offset by a decrease in the average balance of interest earning assets of $29.2 million or 2.5% to $1.146 billion for the three months ended June 30, 2013 from $1.175 billion for the three months ended June 30, 2012. During the second quarter of 2013, the Bank sold at par $24.2 million in commercial real estate participation loans in which no gain or loss was incurred. 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 such assets into higher yielding loans. The average balance of interest bearing liabilities decreased by $41.7 million or 4.1% to $970.6 million for the three months ended June 30, 2013 from $1.012 billion for the three months ended June 30, 2012, while the average cost of interest bearing liabilities decreased by thirteen basis points to 1.08% for the three months ended June 30, 2013 from 1.21% for the year three months ended June 30, 2012. As a consequence of the aforementioned, our net interest margin increased by fifty-five basis points to 4.04% for the three months ended June 30, 2013 from 3.49% for the three months ended June 30, 2012.

Net income was $5.0 million for the six months ended June 30, 2013 compared with a net loss of $1.8 million for the six months ended June 30, 2012. The return to in net income reflects to increases in net interest income and non-interest income and a decrease in non-interest expense, partially offset by an increase in income tax provision. Net interest income increased by $2.44 million or 11.9% to $22.99 million for the six months ended June 30, 2013 from $20.55 million for the six months ended June 30, 2012. This increase in net interest income resulted primarily from an increase in the average yield of interest earning assets to 4.96% for the six months ended June 30, 2013 from 4.54% for the six months ended June 30, 2012, partially offset by a decrease of $45.0 million or 3.8% in the average balance of interest earning assets to $1.139 billion for the six months ended June 30, 2013 from $1.184 billion for the six months ended June 30, 2012. The average balance of interest bearing liabilities decreased by $56.6 million or 5.5% to $969.2 million for the six months ended June 30, 2013 from $1.026 billion for the six months ended June 30, 2012, while the average cost of interest bearing liabilities decreased to 1.09% for the six months ended June 30, 2013 from 1.23% for the six months ended June 30, 2012. As a consequence of the aforementioned, our net interest margin increased to 4.04% for the six months ended June 30, 2013 from 3.47% for the six months ended June 30, 2012. 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 of competitively pricing certain balance sheet products to maximize profitability potential. 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.

Donald Mindiak, CEO commented, “The rebound in our operational performance was positively impacted as a result of the successful implementation of several initiatives executed during 2012. An asset re-allocation initiative coupled with the disposal of a significant portion of our non-performing loan portfolio resulted in the redeployment of cash into interest earning and performing instruments. Net loan balances increased by $116.3 million or 14.1% to $942.1 million at June 30, 2013 as compared to $825.8 million at June 30, 2012. As a result of this increase in net loans, interest income on loans increased by $2.5 million or 10.6% to $26.2 million for the six months ended June 30, 2013 from $23.7 million for the six months ended June 30, 2012. This increase in interest income, coupled with a decrease of $1.0 million or 16.35% in interest expense over the comparative six month periods ended June 30, 2013 and June 30, 2012 resulted in an increase in our net interest spread to 3.87% at June 30, 2013 as compared to 3.30% at June 30, 2012, and an increase in our net interest margin to 4.04% at June 30, 2013 as compared to 3.47% at June 30, 2012. Additionally, cost containment efforts proved successful. We reduced total non-interest expense by approximately $1.9 million or 11.5% to $14.5 million for the six months ended June 30, 2013 from $16.4 million for the six months ended June 30, 2012.”

Mr. Mindiak continued, “The Board of Directors unanimously declared a quarterly cash dividend of $0.12/common share payable on August 16, 2013, with a record date of August 6, 2013, consistent with our prior quarter’s amount. This marks the 26 th consecutive quarter of paying a cash dividend to our common shareholders and the 19 th consecutive quarter that we have maintained that dividend at $0.12/share. This level of consistency in providing our shareholders with a competitive return on their equity is a source of great pride and demonstrates the commitment and ability of the Board and Management to deliver this return. Despite the increasingly complex and challenging economic and regulatory environment for financial institutions, our Board of Directors and Executive Management team continues to exhibit judicious prudence in the exploration and implementation of strategic initiatives that have the capacity to increase 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)
 
June 30, December 31,

2013

2012
 

ASSETS
Cash and amounts due from depository institutions $ 6,134 $ 6,242
Interest-earning deposits   45,082     27,905  

Total cash and cash equivalents
  51,216     34,147  
 
Interest-earning time deposits 986 986
Securities available for sale 662 1,240

Securities held to maturity, fair value $129,692 and $171,603, respectively
127,834 164,648
Loans held for sale 1,668 1,602

Loans receivable, net of allowance for loan losses of $13,673 and $12,363, respectively
942,090 922,301
Premises and equipment, net 14,104 13,568
Federal Home Loan Bank of New York stock, at cost 7,030 7,698
Interest receivable 4,214 4,063
Other real estate owned 3,475 3,274
Deferred income taxes 10,405 10,053
Other assets   3,675     7,778  
Total Assets $ 1,167,359   $ 1,171,358  
 

LIABILITIES AND STOCKHOLDERS' EQUITY
 

LIABILITIES
Non-interest bearing deposits $ 102,917 $ 85,950

Interest bearing deposits
  849,076     854,836  
Total deposits 951,993 940,786
Short-term Borrowings - 17,000
Long-term Debt 114,124 114,124
Other Liabilities   7,940     7,867  
Total Liabilities   1,074,057     1,079,777  
 

STOCKHOLDERS' EQUITY

Preferred stock: $0.01 par value, 10,000,000 shares authorized, issued and outstanding 865 shares of Series A 6% noncumulative perpetual preferred stock (liquidation preference value $10,000 per share)
- -
Additional paid-in capital preferred stock 8,570 8,570

Common stock; $0.064 stated value; 20,000,000 shares authorized, 10,842,479 and 10,841,079 shares, respectively, issued; 8,373,966 shares and 8,496,508 shares, respectively outstanding
694 694
Additional paid-in capital common stock 91,875 91,846
Treasury stock, at cost, 2,468,513 and 2,344,571 shares, respectively (28,434 ) (27,177 )
Retained earnings 21,561 18,883
Accumulated other comprehensive loss   (964 )   (1,235 )
Total Stockholders' equity   93,302     91,581  
 
Total Liabilities and Stockholders' equity $ 1,167,359   $ 1,171,358  
 
                     
BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In Thousands, except for per share amounts, Unaudited)
           
Three Months Ended Six Months Ended
June 30, June 30,
  2013     2012     2013     2012  
 
Interest income:
Loans $ 13,246 $ 11,756 $ 26,239 $ 23,729
Investments, taxable 928 1,519 1,989 3,052
Investments, non-taxable 12 12 25 25
Other interest-earning assets   13     34     24     65  
Total interest income 14,199 13,321 28,277 26,871
 
Interest expense:
Deposits:
Demand 107 160 210 354
Savings and club 91 135 177 302
Certificates of deposit   1,192     1,542     2,441     3,111  
1,390 1,837 2,828 3,767
 
Borrowed money   1,241     1,236     2,464     2,559  
 
Total interest expense   2,631     3,073     5,292     6,326  
 
Net interest income 11,568 10,248 22,985 20,545
Provision for loan losses   600     1,200     1,800     1,800  
 
Net interest income after provision for loan losses   10,968     9,048     21,185     18,745  
 
Non-interest income:
Fees and service charges 479 608 903 1,098
Gain on sales of loans originated for sale 227 316 346 669
Gain on sale of loans acquired - - - 286
Loss on bulk sale of impaired loans held in portfolio - (7,342 ) - (7,342 )
Gain on sale of securities held to maturity 135 66 360 193
Other   40     41     56     66  
Total non-interest income (loss)   881     (6,311 )   1,665     (5,030 )
 
Non-interest expense:
Salaries and employee benefits 3,719 3,891 7,186 7,823
Occupancy expense of premises 866 887 1,679 1,732
Equipment 1,282 1,151 2,448 2,599
Professional fees 568 595 1,027 1,026
Director fees 168 182 336 392
Regulatory assessments 278 295 543 606
Advertising 178 129 280 246
Other real estate owned, net (32 ) 16 (116 ) 261
Other   562     853     1,109     1,696  
Total non-interest expense   7,589     7,999     14,492     16,381  
 
Income (Loss) before income tax provision 4,260 (5,262 ) 8,358 (2,666 )
Income tax provision   1,707     (1,900 )   3,395     (892 )
 
Net Income (Loss) $ 2,553 $ (3,362 ) $ 4,963 $ (1,774 )
Preferred stock dividends $ 130   $ -   $ 260   $ -  
Net Income (loss) available to common stockholders $ 2,423   $ (3,362 ) $ 4,703   $ (1,774 )
 
 
Net Income (loss) per common share-basic and diluted
Basic $ 0.29   $ (0.37 ) $ 0.56   $ (0.19 )
Diluted $ 0.29   $ (0.37 ) $ 0.56   $ (0.19 )
 
Weighted average number of common shares outstanding
Basic   8,411     9,142     8,446     9,289  
Diluted   8,417     9,142     8,450     9,289  
 

Copyright Business Wire 2010

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