BCB Bancorp, Inc., Bayonne, NJ (Nasdaq:BCBP) announced net income
of $1.9 million for the three months ended September 30, 2016, as
compared with $2.3 million for the three months ended September 30,
2015. Basic and diluted earnings per share were $0.15 for the three
months ended September 30, 2016, compared with $0.24 for the three
months ended September 30, 2015. The decrease in net income was
primarily related to an increase in non-interest expense, and a
decrease in non-interest income, partly offset by decreases in the
provision for loan losses and income tax provision.
Net income was $5.5 million for the nine months
ended September 30, 2016, compared with $6.0 million for the nine
months ended September 30, 2015. Basic and diluted earnings per
share were $0.43 for the nine months ended September 30, 2016,
compared with $0.64 and $0.63, respectively, for the nine months
ended September 30, 2015.
Total assets increased by $60.5 million, or 3.7
percent, to $1.679 billion at September 30, 2016 from $1.618
billion at December 31, 2015. The increase in total assets is
attributable to an increase in securities available for sale of
$43.3 million, and an increase in loans receivable, net of $11.1
million, funded by increased deposits. Management is concentrating
on maintaining adequate liquidity in anticipation of funding loans
in the loan pipeline as well as seeking opportunities to purchase
securities in the secondary market that provide competitive returns
in a risk-mitigated environment. It is our intention to grow our
assets at a measured pace consistent with our capital levels and as
business opportunities permit. Organic growth should occur
consistent with our strategic plan under which we anticipate
opening additional branch offices throughout 2016.
Thomas Coughlin, President and Chief Executive
Officer, commented, “Our strategy to expand in new market areas
continued with the opening of five new branches so far this year.
We are excited about this organic expansion and recognize the
related increase in employee and infrastructure costs to support
our goals and bring De novo branches to profitability quickly. We
have recently launched a bank-wide cost savings initiative as we
endeavor to improve our overall efficiency ratio consistent with
top performing banks. Once fully implemented, the manner in
which we operate will be elevated and the delivery channels with
respect to our products and services will be enhanced across our
geographic locations.
In addition, our overall loan growth is expected to remain
strong given the robust pipeline, our competitive rates and the
level of service that ultimately differentiates BCB.”
Mr. Coughlin continued, “The Board of Directors
unanimously declared a quarterly cash dividend of $.14/common share
payable on November 15, 2016, with a record date of November 1,
2016. The continuation of our quarterly cash dividend reflects the
prospective 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 based upon all quantitative measurements as defined by
our regulatory agencies.”
Operations for the three months ended
September 30, 2016, compared with the three months ended September
30, 2015
Net income was $1.9 million for the three months
ended September 30, 2016, compared with $2.3 million for the three
months ended September 30, 2015. The decrease in net income was
primarily related to increases in interest expense and non-interest
expense, and a decrease in non-interest income, partly offset by an
increase in interest income and decreases in the provision for loan
losses and income tax provision.
Net interest income increased by $54,000, or 0.4
percent, to $13.6 million for the three months ended September 30,
2016 from $13.5 million for the three months ended September 30,
2015. The increase in net interest income resulted primarily from
an increase in the average balance of interest-bearing assets of
$201.6 million, or 13.6 percent, to $1.688 billion for the three
months ended September 30, 2016 from $1.486 billion for the three
months ended September 30, 2015, partly offset by a decrease in the
average yield on interest-earning assets of 43 basis points, or 9.3
percent to 4.20 percent for the three months ended September 30,
2016 from 4.63 percent for the three months ended September 30,
2015, and increases in the average balance and cost of
interest-bearing liabilities.
Interest income on loans receivable increased by
$158,000, or 0.9 percent, to $17.2 million for the three months
ended September 30, 2016 from $17.0 million for the three months
ended September 30, 2015. The increase was primarily attributable
to an increase in the average balance of loans receivable of $34.6
million, or 2.5 percent, to $1.443 billion for the three months
ended September 30, 2016 from $1.409 billion for the three months
ended September 30, 2015, partly offset by a decrease in the
average yield on loans receivable to 4.77 percent for the three
months ended September 30, 2016 from 4.84 percent for the three
months ended September 30, 2015. The increase in the average
balance of loans receivable was in accordance with the Company’s
growth strategy, which included the hiring of additional loan
production and business development personnel and the opening of
five additional branches over the last 18 months. The decrease in
average yield on loans reflected the competitive price environment
prevalent in the Company’s primary market area on loan facilities,
as well as the repricing downward of certain variable rate
loans.
Total interest expense increased by $461,000, or
12.6 percent, to $4.1 million for the three months ended September
30, 2016 from $3.7 million for the three months ended September 30,
2015. The increase resulted primarily from an increase in the
average balance of interest-bearing liabilities of $168.3 million,
or 13.4 percent, to $1.428 billion for the three months ended
September 30, 2016 from $1.260 billion for the three months ended
September 30, 2015, while the average cost of interest-bearing
liabilities decreased by 1 basis point to 1.16 percent for the
three months ended September 30, 2016 from 1.17 percent for the
three months ended September 30, 2015. The average balance of
deposits increased $187.9 million, or 17.8 percent, to $1.244
billion for the three months ended September 30, 2016 from $1.056
billion for the three months ended September 30, 2015, and the
average balance of borrowings decreased $19.6 million, or 9.6
percent, to $184.5 million for the three months ended September 30,
2016 from $204.1 million and for the three months ended September
30, 2015. The increase in the average balance of interest-bearing
liabilities was primarily due to the Bank’s 15-month CD promotion
initiated in the second quarter of 2015. The decrease in Federal
Home Loan Bank advance borrowings resulted from the scheduled
repayments. The increase in the average rate on interest-bearing
liabilities was due to competitive forces in attracting new
deposits and a change in the mix of funding sources and terms,
including interest expense associated with the Bank’s 15-month CD
promotion, to support aggressive loan growth, partly offset by a
decrease in the average rate of Federal Home Loan Bank advance
borrowings, resulting from scheduled repayments of significantly
higher cost funds.
Net interest margin was 3.22 percent for the
three-month period ended September 30, 2016 and 3.65 percent for
the three-month period ended September 30, 2015. The decline in net
interest margin was the result of competitive pressures in
attracting new loans and deposits, as evidenced by a decline in the
average yield on loans and an increase in the average cost of
deposits.
The provision for loan losses decreased by
$371,000, to ($301,000) for the three months ended September 30,
2016 from $70,000 for the three months ended September 30, 2015.
The negative provision for loan losses in the current period
reflects the excess specific provisions previously accrued on
certain loans that were settled in the current period.
Total non-interest income decreased by $434,000,
or 22.1 percent, to $1.5 million for the three months ended
September 30, 2016 from $1.9 million for the three months ended
September 30, 2015. Gain on sales of loans decreased by $635,000 to
$718,000 for the three months ended September 30, 2016 compared to
$1.4 million for the three months ended September 30, 2015. A loss
on a bulk sale of impaired loans held in portfolio of $88,000 was
incurred during the three months ended September 30, 2016, with no
comparable sale for the three months ended September 30, 2015. The
decrease in total non-interest income was partly offset by
increases in fees and service charges of $291,000 to $873,000 for
the three months ended September 30, 2016 from $582,000 for the
three months ended September 30, 2015.
Total non-interest expense increased by
$651,000, or 5.6 percent, to $12.3 million for the three months
ended September 30, 2016 from $11.7 million for the three months
ended September 30, 2015. Salaries and employee benefits expense
increased by $806,000, or 13.6 percent, to $6.7 million for the
three months ended September 30, 2016 from $5.9 million for the
three months ended September 30, 2015. This increase in both
salaries and employee benefits was mainly attributable to an
increase of 56 full-time equivalent employees, or 17.0 percent, to
386 at September 30, 2016 from 330 at September 30, 2015, which
relates to the addition of business development and loan
administration employees and the opening of five new branch offices
in the last 18 months. Occupancy and equipment expense increased by
$243,000, or 12.5 percent, to $2.2 million for the three months
ended September 30, 2016 from $1.9 million for the three months
ended September 30, 2015. The increase in occupancy and equipment
expense also related primarily to the opening of the new branch
offices. Regulatory assessments increased by $101,000, or 30.8
percent, to $429,000 for the three months ended September 30, 2016
from $328,000 for the three months ended September 30, 2015,
primarily related to asset growth. Advertising expense increased by
$123,000, or 34.3 percent, to $482,000 for the three months ended
September 30, 2016 from $359,000 for the three months ended
September 30, 2015, resulting from continued expansion into new
market areas. The above increases in non-interest expense were
partly offset by a decrease in data processing expense of $655,000,
or 64.7 percent, to $358,000 for the three months ended September
30, 2016 as compared to $1.0 million for the three months ended
September 30, 2015. The decrease in data processing expense
primarily related to efficiencies achieved with the conversion to a
new core system.
Income tax provision decreased by $292,000, or
20.0 percent, to $1.2 million for the three months ended September
30, 2016 from $1.5 million for the three months ended September 30,
2015. The increase in income tax provision was a result of lower
taxable income during the three-month period ended September 30,
2016 as compared with the three months ended September 30, 2015.
The consolidated effective tax rate for the three months ended
September 30, 2016 was 38.0 percent compared to 39.1 percent for
the three months ended September 30, 2015.
Operations for the nine months ended
September 30, 2016 compared with the nine months ended September
30, 2015
Net income was $5.5 million for the nine months
ended September 30, 2016, compared with $6.0 million for the nine
months ended September 30, 2015. The decrease in net income was
primarily related to an increase in non-interest expense, and a
decrease in non-interest income, partly offset by an increase in
net interest income and decreases in the provision for loan losses
and income tax provision.
Net interest income increased by $828,000, or
2.1 percent, to $40.7 million for the nine months ended September
30, 2016 from $39.8 million for the nine months ended September 30,
2015. The increase in net interest income resulted primarily from
an increase in the average balance of interest-bearing assets of
$259.2 million, or 18.5 percent, to $1.662 billion for the nine
months ended September 30, 2016 from $1.403 billion for the nine
months ended September 30, 2015, partly offset by a decrease in the
average yield on interest-earning assets of 46 basis points, or 9.7
percent, to 4.27 percent for the nine months ended September 30,
2016 from 4.73 percent for the nine months ended September 30,
2015.
Interest income on loans receivable increased by
$2.7 million, or 5.4 percent, to $51.9 million for the nine months
ended September 30, 2016 from $49.3 million for the nine months
ended September 30, 2015. The increase was primarily attributable
an increase in the average balance of loans receivable of $101.6
million, or 7.6 percent, to $1.444 billion for the nine months
ended September 30, 2016 from $1.342 billion for the nine months
ended September 30, 2015 and a decrease in the average yield on
loans receivable to 4.80 percent for the nine months ended
September 30, 2016 from 4.89 percent for the nine months ended
September 30, 2015. The increase in the average balance of loans
receivable was in accordance with the Company’s growth strategy,
which included the hiring of additional loan production and
business development personnel and the opening of five additional
branches over the last 18 months. The decrease in average yield on
loans reflected the competitive price environment prevalent in the
Company’s primary market area on loan facilities, as well as the
repricing downward of certain variable rate loans.
Interest income on securities increased by
$210,000, or 45.4 percent, to $673,000 for the nine months ended
September 30, 2016 from $463,000 for the nine months ended
September 30, 2015. This increase was primarily due to an increase
in the average balance of securities of $7.0 million, or 35.5
percent, to $26.6 million for the nine months ended September 30,
2016 from $19.6 million for the nine months ended September 30,
2015, and by an increase in the average yield of securities to 3.37
percent for the nine months ended September 30, 2016 from 3.14
percent for the nine months ended September 30, 2015.
Interest income on other interest-earning assets
increased by $578,000 to $623,000 for the nine months ended
September 30, 2016 from $45,000 for the nine months ended September
30, 2015. This increase was primarily due to an increase in the
average balance of other interest-earning assets of $150.6 million
to $191.8 million for the nine months ended September 30, 2016 from
$41.2 million for the nine months ended September 30, 2015.
Total interest expense increased by $2.6
million, or 26.6 percent, to $12.6 million for the nine months
ended September 30, 2016 from $10.0 million for the nine months
ended September 30, 2015. The increase resulted primarily from an
increase in the average balance of interest-bearing liabilities of
$225.5 million, or 19.1 percent to $1.409 billion for the nine
months ended September 30, 2016 from $1.183 billion for the nine
months ended September 30, 2015, and an increase in the average
cost of interest-bearing liabilities of 7 basis points to 1.19
percent for the nine months ended September 30, 2016 from 1.12
percent for the nine months ended September 30, 2015. The average
balance of deposits increased $220.3 million, or 22.3 percent, to
$1.208 billion for the nine months ended September 30, 2016 from
$987.3 million for the nine months ended September 30, 2015, and
the average balance of borrowings decreased $5.2 million, or 2.7
percent, to $201.0 million for the nine months ended September 30,
2016 from $195.8 million and for the nine months ended September
30, 2015. The increase in the average balance of interest-bearing
liabilities was primarily due to the Bank’s 15-month CD promotion
initiated in the second quarter of 2015. The decrease in Federal
Home Loan Bank advance borrowings resulted from the scheduled
repayments. The increase in the average rate on interest-bearing
liabilities was due to competitive forces in attracting new
deposits and a change in the mix of funding sources and terms,
including interest expense associated with the Bank’s 15-month CD
promotion, to support aggressive loan growth, partly offset by a
decrease in the average rate of Federal Home Loan Bank advance
borrowings, resulting from scheduled repayments of much higher cost
funds.
The net interest margin was 3.26 percent for the
nine-month period ended September 30, 2016 and 3.79 percent for the
nine-month period ended September 30, 2015. The decline in net
interest margin was the result of competitive pressures in
attracting new loans and deposits, as evidenced by a decline in the
average yield on loans and an increase in the average cost of
deposits.
The provision for loan losses decreased by $2.0
million to ($75,000) for the nine months ended September 30, 2016
from $1.9 million for the nine months ended September 30, 2015. The
negative provision for loan losses in the current period reflects
the excess specific provisions previously accrued on certain loans
that were settled in the current period.
Total non-interest income decreased by $266,000,
or 5.4 percent, to $4.7 million for the nine months ended September
30, 2016 from $5.0 million for the nine months ended September 30,
2015. Gain on sale of loans decreased by $657,000, or 19.7 percent,
to $2.7 million for the nine months ended September 30, 2016
compared to $3.3 million for the nine months ended September 30,
2015. Losses on bulk sales of impaired loans held in portfolio were
$373,000 for the nine months ended September 30, 2016, with no
comparable figure for the nine months ended September 30, 2015. The
above decreases in total non-interest income were partly offset by
an increase in fees and service charges by $767,000, or 49.4
percent, to $2.3 million for the nine months ended September 30,
2016 from $1.6 million for the nine months ended September 30,
2015.
Total non-interest expense increased by $3.4
million, or 10.4 percent, to $36.2 million for the nine months
ended September 30, 2016 from $32.8 million for the nine months
ended September 30, 2015. Salaries and employee benefits expense
increased by $2.1 million, or 12.8 percent, to $18.9 million for
the nine months ended September 30, 2016 from $16.8 million for the
nine months ended September 30, 2015. This increase in both
salaries and employee benefits was mainly attributable to an
increase of 56 full-time equivalent employees, or 17.0 percent, to
386 at September 30, 2016 from 330 at September 30, 2015, which
relates to the addition of business development and loan
administration employees and the opening of five new branch offices
in the last 18 months. Occupancy and equipment expense increased by
$425,000, or 7.5 percent, to $6.1 million for the nine months ended
September 30, 2016 from $5.7 million for the nine months ended
September 30, 2015. The increase in occupancy and equipment expense
also related primarily to the opening of the new branch offices.
Professional fees increased by $540,000, or 65.3 percent, to $1.4
million for the nine months ended September 30, 2016 as compared to
$827,000 for the nine months ended September 30, 2016. The increase
in professional fees resulted from a $400,000 reduction in expense
in the prior-year period upon the settlement of a litigation issue.
Regulatory assessments increased by $271,000, or 31.2 percent, to
$1.1 million for the nine months ended September 30, 2016 from
$868,000 for the nine months ended September 30, 2015, primarily
related to asset growth. Advertising expense increased by $201,000,
or 19.4 percent, to $1.2 million for the nine months ended
September 30, 2016 from $1.0 million for the nine months ended
September 30, 2015, resulting from continued expansion into new
market areas. Other non-interest expense increased by $733,000, or
19.2 percent, to $4.5 million for the nine months ended September
30, 2016 from $3.8 million for the nine months ended September 30,
2015. Other non-interest expense consisted of loan expense,
business development, office supplies, correspondent bank fees,
telephone and communication and other fees and expenses, which all
experienced increases as part of the Company’s growth strategy. The
above increases in non-interest expense were partly offset by a
decrease in data processing expense of $821,000, or 26.7 percent,
to $2.3 million for the nine months ended September 30, 2016 as
compared to $3.1 million for the nine months ended September 30,
2015. The decrease in data processing expense primarily related to
efficiencies achieved with the conversion to a new core system.
Financial Condition
Total assets increased by $60.5 million, or 3.7
percent, to $1.679 billion at September 30, 2016 from $1.618
billion at December 31, 2015. The increase in total assets occurred
primarily as a result of an increase in cash and cash equivalents
of $5.1 million, an increase in securities available for sale of
$43.3 million, and an increase in loans receivable, net of $11.1
million. Management is concentrating on maintaining adequate
liquidity in anticipation of funding loans in the loan pipeline as
well as seeking opportunities to purchase securities in the
secondary market that provide competitive returns in a
risk-mitigated environment. It is our intention to grow our assets
at a measured pace consistent with our capital levels and as
business opportunities permit. Organic growth should occur
consistent with our strategic plan under which we anticipate
opening additional branch offices in 2016.
Total cash and cash equivalents increased by
$5.1 million, or 3.8 percent, to $137.7 million at September 30,
2016 from $132.6 million at December 31, 2015 due to the Company’s
strategy to increase our deposit base.
Securities available for sale increased by $43.3
million, or 449.8%, to $52.9 million at September 30, 2016 from
$9.6 million at December 31, 2015 as the Company deployed excess
cash to improve returns on earning assets and liquidity.
Loans receivable, net increased by $11.1
million, or 0.8 percent, to $1.431 billion at September 30, 2016
from $1.420 billion at December 31, 2015. The increase resulted
primarily from increases of $13.5 million in residential real
estate loans, 12.4 million in commercial and multi-family loans,
and construction loans of $3.7 million. The increase in loans
receivable was partly offset by decreases of $15.5 million in
commercial business loans, $2.4 million in home equity loans and
home equity lines of credit, and $1.6 million in consumer loans. As
of September 30, 2016, the allowance for loan losses was $17.6
million, or 90.9 percent, of non-performing loans and 1.21 percent
of gross loans.
Deposit liabilities increased by $106.5 million,
or 8.4 percent, to $1.380 billion at September 30, 2016 from $1.274
billion at December 31, 2015. The increase resulted primarily from
increases of $98.5 million in NOW deposits, $18.1 million in
non-interest-bearing deposits, $6.1 million in savings and club
deposits, and $44.0 million in money market interest-bearing
deposits, partly offset by a decrease of $60.2 million in
certificates of deposit. In addition to organic deposit growth
resulting from the opening of five additional branches over the
last 18 months, the Company has also added listing service
certificates of deposit and brokered certificates of deposit to
fund loan growth, which totaled $35.5 million and $20.8 million,
respectively, at September 30, 2016. The decrease in certificates
of deposit related to maturities of a promotional 15-month program
from 2015 that were not retained by the Company.
Long-term debt decreased by $45.0 million, or
22.5 percent, to $155.0 million at September 31, 2016 from $200.0
million at December 31, 2016 due to net repayments of outstanding
FHLB advances. The purpose of these borrowings reflected the use of
long-term Federal Home Loan Bank advances to augment deposits as
the Company’s funding source for originating loans and investing in
GSE investment securities. The increase in Federal Home Loan Bank
advances resulted from the Company’s utilization of medium-term,
fixed rate FHLB advances as part of our interest rate risk
management strategy. The weighted average interest rate of
borrowings was 2.66 percent at September 30, 2016.
Stockholders’ equity decreased by $1.2 million,
or 0.9 percent, to $132.3 million at September 30, 2016 from $133.5
million at December 31, 2015. The decrease in stockholders’ equity
was primarily attributable to the redemption of $1.7 million in
Series A preferred stock, cash dividends paid during the nine-month
period totaling $4.5 million on outstanding shares of common stock
and $702,000 on outstanding preferred stock, partly offset by net
income of $5.5 million.
BCB BANCORP INC. AND SUBSIDIARIES |
QUARTERLY FINANCIAL HIGHLIGHTS |
|
|
|
|
Selected financial condition data at end of
quarter |
|
|
|
Q3 2016 |
|
|
Q2 2016 |
|
|
Q1 2016 |
|
|
Q4 2015 |
|
|
Q3 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands) |
Total assets |
|
$ |
1,678,936 |
|
$ |
1,738,343 |
|
$ |
1,706,148 |
|
$ |
1,618,406 |
|
$ |
1,554,855 |
Cash and cash
equivalents |
|
|
137,707 |
|
|
235,774 |
|
|
210,196 |
|
|
132,635 |
|
|
95,778 |
Securities available
for sale |
|
|
52,907 |
|
|
18,365 |
|
|
9,639 |
|
|
9,623 |
|
|
9,787 |
Loans receivable,
net |
|
|
1,431,211 |
|
|
1,424,891 |
|
|
1,429,549 |
|
|
1,420,118 |
|
|
1,396,270 |
Deposits |
|
|
1,380,385 |
|
|
1,394,305 |
|
|
1,350,420 |
|
|
1,273,929 |
|
|
1,233,279 |
Borrowings |
|
|
155,000 |
|
|
200,000 |
|
|
210,000 |
|
|
204,124 |
|
|
200,000 |
Stockholders’
equity |
|
|
132,299 |
|
|
132,306 |
|
|
132,311 |
|
|
133,544 |
|
|
108,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected operating data by
quarter |
|
|
|
Q3 2016 |
|
Q2 2016 |
|
|
Q1 2016 |
|
Q4 2015 |
|
|
Q3 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except for per share
amounts) |
Net interest income |
|
$ |
|
13,597 |
|
$ |
13,363 |
|
$ |
13,698 |
$ |
13,681 |
|
$ |
13,543 |
Provision for loan
losses |
|
|
|
(301 |
) |
|
37 |
|
|
189 |
|
360 |
|
|
70 |
Non-interest income |
|
|
|
1,530 |
|
|
1,506 |
|
|
1,654 |
|
2,109 |
|
|
1,964 |
Non-interest expense |
|
|
|
12,343 |
|
|
12,166 |
|
|
11,737 |
|
13,613 |
|
|
11,692 |
Income tax expense |
|
|
|
1,171 |
|
|
1,085 |
|
|
1,391 |
|
796 |
|
|
1,463 |
Net income |
|
$ |
|
1,914 |
|
$ |
1,581 |
|
$ |
2,035 |
$ |
1,021 |
|
$ |
2,282 |
Net income per share: |
|
$ |
|
0.15 |
|
$ |
0.12 |
|
$ |
0.16 |
$ |
0.07 |
|
$ |
0.24 |
Common Dividends declared
per share |
|
$ |
|
0.14 |
|
$ |
0.14 |
|
$ |
0.14 |
$ |
0.14 |
|
$ |
0.14 |
Selected Financial
Ratios and Other Data: |
|
|
Return on average
assets |
|
|
0.11 |
% |
|
|
0.09 |
% |
|
|
0.12 |
% |
|
|
0.06 |
% |
|
|
0.15 |
% |
Return on average
stockholder’s equity |
|
|
1.46 |
% |
|
|
1.20 |
% |
|
|
1.54 |
% |
|
|
0.86 |
% |
|
|
2.16 |
% |
Net interest margin |
|
|
3.22 |
% |
|
|
3.19 |
% |
|
|
3.37 |
% |
|
|
3.52 |
% |
|
|
3.65 |
% |
Stockholder’s equity to
total assets |
|
|
7.88 |
% |
|
|
7.61 |
% |
|
|
7.75 |
% |
|
|
8.25 |
% |
|
|
6.96 |
% |
|
|
|
|
|
|
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BCB Community Bank presently operates 20
full-service offices in Bayonne, Colonia, Edison, Fairfield,
Hoboken, Holmdel, Jersey City, Lyndhurst, Lodi, Monroe Township,
Rutherford, South Orange and Woodbridge, New Jersey, and two in
Staten Island, New York.
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.
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
September 30, |
|
December 31, |
|
2016 |
|
2015 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Cash and amounts due
from depository institutions |
$ |
|
16,801 |
|
|
$ |
|
11,808 |
|
Interest-earning
deposits |
|
|
120,906 |
|
|
|
|
120,827 |
|
Total cash and
cash equivalents |
|
|
137,707 |
|
|
|
|
132,635 |
|
|
|
|
|
|
|
Interest-earning time
deposits |
|
|
980 |
|
|
|
|
1,238 |
|
Securities available
for sale |
|
|
52,907 |
|
|
|
|
9,623 |
|
Loans held for
sale |
|
|
1,474 |
|
|
|
|
1,983 |
|
Loans receivable, net
of allowance for loan losses of $17,590 and |
|
|
|
|
|
$18,042
respectively |
|
|
1,431,211 |
|
|
|
|
1,420,118 |
|
Federal Home Loan Bank
of New York stock, at cost |
|
|
8,991 |
|
|
|
|
10,711 |
|
Premises and equipment,
net |
|
|
17,240 |
|
|
|
|
15,727 |
|
Accrued interest
receivable |
|
|
5,229 |
|
|
|
|
5,595 |
|
Other real estate
owned |
|
|
2,967 |
|
|
|
|
1,564 |
|
Deferred income
taxes |
|
|
8,546 |
|
|
|
|
9,881 |
|
Other assets |
|
|
11,684 |
|
|
|
|
9,331 |
|
Total
Assets |
$ |
|
1,678,936 |
|
|
$ |
|
1,618,406 |
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
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|
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|
LIABILITIES |
|
|
|
|
|
Non-interest bearing
deposits |
$ |
|
143,093 |
|
|
$ |
|
130,920 |
|
Interest bearing
deposits |
|
|
1,237,292 |
|
|
|
|
1,143,009 |
|
Total
deposits |
|
|
1,380,385 |
|
|
|
|
1,273,929 |
|
|
|
|
|
|
|
Borrowed funds |
|
|
155,000 |
|
|
|
|
200,000 |
|
Subordinated
debentures |
|
|
4,124 |
|
|
|
|
4,124 |
|
Other liabilities and
accrued interest payable |
|
|
7,128 |
|
|
|
|
6,809 |
|
Total
Liabilities |
|
|
1,546,637 |
|
|
|
|
1,484,862 |
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Preferred stock: $0.01
par value, 10,000,000 shares authorized, |
|
|
|
|
|
issued and
outstanding 1,560 shares of series A, B, and C 6% noncumulative
perpetual |
|
|
|
|
|
preferred stock
(liquidation value $10,000 per share) at September 30, 2016 and
1,731 at December 31, 2015 |
|
|
- |
|
|
|
|
- |
|
Additional paid-in
capital preferred stock |
|
|
15,464 |
|
|
|
|
17,174 |
|
Common stock; no par
value; 20,000,000 shares authorized, issued 13,783,366 and
13,738,587 |
|
|
|
|
|
at September
30,2016 and December 31, 2015, respectively, outstanding 11,254,103
shares and |
|
|
|
|
|
11,209,324
shares, respectively |
|
|
882 |
|
|
|
|
879 |
|
Additional paid-in
capital common stock |
|
|
119,333 |
|
|
|
|
118,803 |
|
Retained earnings |
|
|
27,497 |
|
|
|
|
27,382 |
|
Accumulated other
comprehensive (loss) |
|
|
(1,781 |
) |
|
|
|
(1,598 |
) |
Treasury stock, at
cost, 2,529,263 shares at September 30, 2016 and December 31,
2015 |
|
|
(29,096 |
) |
|
|
|
(29,096 |
) |
Total
Stockholders' Equity |
|
|
132,299 |
|
|
|
|
133,544 |
|
|
|
|
|
|
|
Total
Liabilities and Stockholders' Equity |
$ |
|
1,678,936 |
|
|
$ |
|
1,618,406 |
|
|
|
|
|
|
|
BCB BANCORP INC. AND SUBSIDIARIES |
Consolidated Statements of Income |
(In Thousands, except for per share amounts,
Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees |
$ |
|
17,191 |
|
|
$ |
17,033 |
|
|
$ |
|
51,947 |
|
|
$ |
49,264 |
Investments,
taxable |
|
|
300 |
|
|
|
165 |
|
|
|
|
673 |
|
|
|
463 |
Other
interest-earning assets |
|
|
240 |
|
|
|
18 |
|
|
|
|
623 |
|
|
|
45 |
Total interest income |
|
|
17,731 |
|
|
|
17,216 |
|
|
|
|
53,243 |
|
|
|
49,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
|
585 |
|
|
|
245 |
|
|
|
|
1,417 |
|
|
|
644 |
Savings and
club |
|
|
99 |
|
|
|
93 |
|
|
|
|
281 |
|
|
|
309 |
Certificates of
deposit |
|
|
2,077 |
|
|
|
1,681 |
|
|
|
|
6,237 |
|
|
|
4,184 |
|
|
|
2,761 |
|
|
|
2,019 |
|
|
|
|
7,935 |
|
|
|
5,137 |
Borrowed
money |
|
|
1,373 |
|
|
|
1,654 |
|
|
|
|
4,650 |
|
|
|
4,805 |
Total interest expense |
|
|
4,134 |
|
|
|
3,673 |
|
|
|
|
12,585 |
|
|
|
9,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
13,597 |
|
|
|
13,543 |
|
|
|
|
40,658 |
|
|
|
39,830 |
Provision for loan
losses |
|
|
(301 |
) |
|
|
70 |
|
|
|
|
(75 |
) |
|
|
1,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income after provision for loan losses |
|
|
13,898 |
|
|
|
13,473 |
|
|
|
|
40,733 |
|
|
|
37,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service
charges |
|
|
873 |
|
|
|
520 |
|
|
|
|
2,320 |
|
|
|
1,553 |
Gain on sales of
loans |
|
|
718 |
|
|
|
1,415 |
|
|
|
|
2,671 |
|
|
|
3,328 |
Loss on bulk
sale of impaired loans held in portfolio |
|
|
(88 |
) |
|
|
- |
|
|
|
|
(373 |
) |
|
|
- |
Other |
|
|
27 |
|
|
|
29 |
|
|
|
|
72 |
|
|
|
75 |
Total non-interest income |
|
|
1,530 |
|
|
|
1,964 |
|
|
|
|
4,690 |
|
|
|
4,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
|
|
6,747 |
|
|
|
5,941 |
|
|
|
|
18,931 |
|
|
|
16,782 |
Occupancy and
equipment |
|
|
2,192 |
|
|
|
1,949 |
|
|
|
|
6,107 |
|
|
|
5,682 |
Data processing
and service fees |
|
|
358 |
|
|
|
1,013 |
|
|
|
|
2,253 |
|
|
|
3,074 |
Professional
fees |
|
|
457 |
|
|
|
421 |
|
|
|
|
1,367 |
|
|
|
827 |
Director
fees |
|
|
183 |
|
|
|
181 |
|
|
|
|
519 |
|
|
|
560 |
Regulatory
assessments |
|
|
429 |
|
|
|
328 |
|
|
|
|
1,139 |
|
|
|
868 |
Advertising and
promotional |
|
|
482 |
|
|
|
359 |
|
|
|
|
1,235 |
|
|
|
1,034 |
Other real
estate owned, net |
|
|
36 |
|
|
|
27 |
|
|
|
|
146 |
|
|
|
196 |
Other |
|
|
1,459 |
|
|
|
1,473 |
|
|
|
|
4,549 |
|
|
|
3,816 |
Total non-interest expense |
|
|
12,343 |
|
|
|
11,692 |
|
|
|
|
36,246 |
|
|
|
32,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income tax provision |
|
|
3,085 |
|
|
|
3,745 |
|
|
|
|
9,177 |
|
|
|
10,027 |
Income tax
provision |
|
|
1,171 |
|
|
|
1,463 |
|
|
|
|
3,647 |
|
|
|
4,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
|
1,914 |
|
|
$ |
2,282 |
|
|
$ |
|
5,530 |
|
|
$ |
6,009 |
Preferred stock
dividends |
|
|
234 |
|
|
|
254 |
|
|
|
|
702 |
|
|
|
657 |
Net Income
available to common stockholders |
$ |
|
1,680 |
|
|
$ |
2,028 |
|
|
$ |
|
4,828 |
|
|
$ |
5,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per
common share-basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
|
0.15 |
|
|
$ |
0.24 |
|
|
$ |
|
0.43 |
|
|
$ |
0.64 |
Diluted |
$ |
|
0.15 |
|
|
$ |
0.24 |
|
|
$ |
|
0.43 |
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
11,246 |
|
|
|
8,436 |
|
|
|
|
11,230 |
|
|
|
8,419 |
Diluted |
|
|
11,258 |
|
|
|
8,453 |
|
|
|
|
11,236 |
|
|
|
8,441 |
Contact
Thomas Keating, Senior Vice President and Chief Financial Officer – 201.823.0700
or
Thomas Coughlin, President and Chief Executive Officer – 201.823.0700
BCB Bancorp (NASDAQ:BCBP)
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