BCB Bancorp, Inc., Bayonne, NJ (NASDAQ:BCBP), the holding company
for BCB Community Bank (the “Bank”), announced net income of $3.1
million for the three months ended June 30, 2017, as compared with
net income of $1.6 million for the three months ended June 30,
2016. Basic and diluted earnings per share were $0.26 for the three
months ended June 30, 2017, compared with $0.12 for the three
months ended June 30, 2016.
Net income was $6.0 million for the six months
ended June 30, 2017, compared with $3.6 million for the six months
ended June 30, 2016. Basic and diluted earnings per share were
$0.51 and $0.50, respectively, for the six months ended June 30,
2017, compared with $0.28 for the six months ended June 30,
2016.
Total assets increased by $107.2 million, or 6.3
percent, to $1.815 billion at June 30, 2017, from $1.708 billion at
December 31, 2016. The increase in total assets was primarily
as a result of increases in total cash and cash equivalents, net
loans receivable and securities available for sale. This net
increase in assets was funded primarily from a $104.1 million, or
7.5 percent, increase in deposits. Management is focused on
maintaining adequate liquidity in anticipation of funding loans
from a very healthy pipeline as demand continues to be strong.
We continue to consider all growth opportunities afforded us
but at a pace consistent with our targeted capital
levels.
Thomas Coughlin, President and Chief Executive
Officer, commented, "We are very pleased with our results for the
second quarter and year to date. Our performance is meeting the
expectations set through our strategic plan. We achieved growth in
several key indices, including net income, asset quality and
earnings per share. Net interest income increased by approximately
12.7 percent, or $1.7 million, due to our aggressive growth in
loans while adhering to strict lending parameters. This has been
enhanced by our cost-reduction initiative, which yielded a
reduction in non-interest expenses for the first six months of 2017
of 8.4 percent, or $1.0 million, as compared to the same period
last year.
"Our asset quality improvement reflects a 27
percent decrease of non-accrual loans from $21.1 million at June
30, 2016 down to $15.5 million at June 30, 2017. The allowance for
losses as a percentage of non-accrual loans is at approximately 116
percent as compared to approximately 87 percent for the same period
last year, as we remain vigilant in addressing these loans. In
addition, we enjoyed strong growth in loans across multiple
categories in both the commercial and residential sectors.
"We continue to deliver added value to our
shareholders, as our earnings per share continues to improve,"
Coughlin continued. "We continue to strategically manage our
capital position in support of our strategic plans. In 2017, after
redeeming $11.7 million of Series A and B 6.0 percent Preferred
Stock, we issued $9.5 million of Series D 4.5 percent Preferred
Stock.
"In addition, we continue to grow the Bank both
organically through the opening of new branches – five in the last
12 months – and through acquisition. Recently, we announced that we
have entered into a definitive agreement with IA Bancorp, Inc.,
pursuant to which the Company will acquire IAB and its wholly owned
subsidiary, Indus-American Bank. Upon consummation of the merger,
Indus-American Bank will merge with BCB Community Bank and will
operate as a division of BCB Community Bank. This merger will allow
us to both further develop existing markets where BCB Community
Bank and Indus-American Bank share similar footprints and expand
into new, attractive geographies. The merger will add approximately
$235 million to the Company's asset base, based on IAB's assets as
of March 31, 2017. Following completion of the merger, the Company
will have total assets of more than $2 billion, based on BCB's and
IAB's respective assets as of March 31, 2017."
Operations for the three months ended June
30, 2017, compared with the three months ended June 30,
2016
Net income increased $1.5 million, or 95.7 percent,
to $3.1 million for the three months ended June 30, 2017, compared
with $1.6 million for the three months ended June 30, 2016. The
increase in net income was primarily related to an increase in
total interest income, a decrease in total interest expense, an
increase in total non-interest income, and a decrease in total
non-interest expense, partly offset by a higher provision for loan
loss and a higher income tax provision for the three months ended
June 30, 2017 as compared to the three months ended June 30,
2016.
Net interest income increased by $1.7 million, or
12.7 percent, to $15.1 million for the three months ended June 30,
2017 from $13.4 million for the three months ended June 30, 2016.
The increase in net interest income resulted primarily from an
increase in the average balance on total interest earning assets of
$72.1 million, or 4.31 percent, to $1.747 billion for the three
months ended June 30, 2017 from $1.675 billion for the three months
ended June 30, 2016, as well as an increase in the average yield on
total interest earning assets of 15 basis points, or 3.40 percent,
to 4.37 percent for the three months ended June 30, 2017 from 4.22
percent for the three months ended June 30, 2016.
Interest income on loans receivable increased by
$763,000, or 4.4 percent, to $18.0 million for the three months
ended June 30, 2017 from $17.3 million for the three months ended
June 30, 2016. The increase was primarily attributable to an
increase in the average balance of loans receivable of $129.3
million, or 8.9 percent, to $1.578 billion for the three months
ended June 30, 2017 from $1.448 billion for the three months ended
June 30, 2016, partly offset by a decrease in the average yield on
loans receivable of 20 basis points, or 4.14 percent, to 4.57
percent for the three months ended June 30, 2017 from 4.77 percent
for the three months ended June 30, 2016. The increase in the
average balance of loans receivable was in accordance with the
Company’s growth strategy, which included growing the Bank’s
geographic footprint vis-à-vis our organic branching strategy and
the hiring of seasoned loan and business development officers. 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 investment securities increased
by $712,000, to $762,000 for the three months ended June 30, 2017
from $50,000 for the three months ended June 30, 2016. The increase
is primarily attributable to an increase in the average balance of
investment securities of $83.5 million, or 388.8 percent, to $105.0
million for the three months ended June 30, 2017 from $21.5 million
for the three months ended June 30, 2016, and an decrease in the
average yield on investment securities of 34 basis points, or 17.3
percent, to 2.30 percent, for the three months ended June 30, 2017
from 1.96 percent for the three months ended June 30, 2016.
Interest income on other interest-earning assets
decreased by $87,000, or 23.6 percent, to $281,000 for the three
months ended June 30, 2017 from $368,000 for the three months ended
June 30, 2016. The decrease is primarily attributable to a decrease
in the average balance of other interest-earning deposits of $140.8
million, or 68.8 percent, to $63.9 million for the three months
ended June 30, 2017 from $204.7 million for the three months ended
June 30, 2016, partly offset by an increase in the average yield on
other interest-earning assets of 108 basis points, or 158.0
percent, to 1.76 percent for the three months ended June 30, 2017
from 0.68 percent for the three months ended June 30, 2016. The
decrease in the average balance of other interest-earning assets
related to a decrease in cash as funds were deployed for repayment
of Federal Home Loan Bank (“FHLB”) borrowings, purchases of
investment securities and to fund loan growth, while the increase
in the average yield primarily resulted from increases in the Fed
Funds rate.
Total interest expense decreased by $312,000, or
7.2 percent, to $4.0 million for the three months ended June 30,
2017 from $4.3 million for the three months ended June 30, 2016.
Despite an increase in the average balance of interest-cost
liabilities of $49.7 million, or 3.5 percent, to $1.472 billion for
the three months ended June 30, 2017 from $1.422 billion for the
three months ended June 30, 2016, the average cost of funds
decreased 12 basis points, or 10.4 percent, to 1.09 percent for the
three months ended June 30, 2017 from 1.21 percent for the three
months ended June 30, 2016. The average balance of total deposit
liabilities increased by $94.2 million, or 7.8 percent, to $1.306
billion for the three months ended June 30, 2017 from $1.212
billion for the three months ended June 30, 2016, and the average
cost of deposits remained unchanged at .89 percent for both
three-month periods. The average balance of high-cost borrowings
decreased by $44.5 million, or 21.2 percent, to $165.5 million for
the three months ended June 30, 2017 from $210.0 million for the
three months ended June 30, 2016, and the average cost of
borrowings decreased 47 basis points, or 15.4 percent, to 2.63
percent, for the three months ended June 30, 2017 from 3.10 percent
for the three months ended June 30, 2016. The decrease in
borrowings was the result of scheduled repayments of Federal Home
Loan Bank advances.
Mr. Coughlin stated “The repayment of $55.0 million
of Federal Home Loan Bank Advances with a weighted average rate of
4.34 percent in mid-2016, and the scheduled repayments of another
$55.0 million, of which $20 million was paid in May, 2017 and $35
million is due in July 2017, having a weighted average rate of 4.45
percent, contributes positively to our net interest margin.”
Net interest margin was 3.45 percent for the
three-month period ended June 30, 2017 and 3.19 percent for the
three-month period ended June 30, 2016. The improvement in the net
interest margin was the result of the repayment of higher cost FHLB
borrowings in mid-2016, partly offset by 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 increased by
$739,000, to $776,000 for the three months ended June 30, 2017 from
$37,000 for the three months ended June 30, 2016. The provision for
loan losses is established based upon management’s review of the
Company’s loans and consideration of a variety of factors,
including but not limited to: (1) the risk characteristics of the
loan portfolio; (2) current economic conditions; (3) actual losses
previously experienced; (4) the dynamic activity and fluctuating
balance of loans receivable; and (5) the existing level of reserves
for loan losses that are probable and estimable. During the three
months ended June 30, 2017, the Company experienced $338,000 in net
charge-offs compared to $133,000 in net recoveries for the three
months ended June 30, 2016. The Bank had non-performing loans
totaling $15.5 million, or 0.97 percent, of gross loans at June 30,
2017 and $15.7 million, or 1.04 percent, of gross loans at December
31, 2016. The allowance for loan losses was $18.0 million, or 1.13
percent, of gross loans at June 30, 2017, $17.2 million, or 1.15
percent, of gross loans at December 31, 2016 and $18.3 million, or
1.27 percent, of gross loans at June 30, 2016. The amount of the
allowance is based on estimates and the ultimate losses may vary
from such estimates. Management assesses the allowance for loan
losses on a quarterly basis and makes provisions for loan losses as
necessary in order to maintain the adequacy of the allowance. While
management uses available information to recognize losses on loans,
future loan loss provisions may be necessary based on changes in
the aforementioned criteria. In addition various regulatory
agencies, as an integral part of their examination process,
periodically review the allowance for loan losses and may require
the Company to recognize additional provisions based on their
judgment of information available to them at the time of their
examination. Management believes that the allowance for loan losses
was adequate at June 30, 2017 and December 31, 2016.
Total non-interest income increased by $516,000, or
34.3 percent, to $2.0 million for the three months ended June 30,
2017 from $1.5 million for the three months ended June 30, 2016.
The increase was primarily attributable to income gained from sales
on other real estate owned properties of $197,000 for the three
months ended June 30, 2017 with no comparable figure for the three
months ended June 30, 2016, an increase in fees and service charges
of $102,000, or 13.9 percent, to $838,000 for the three months
ended June 30, 2017 from $736,000 for the three months ended June
30, 2016, a loss on bulk sale of impaired loans held in the
portfolio of $285,000 for the three months ended June 30, 2016 with
no comparable figure for the three months ended June 30, 2017, as
well as an increase in other non-interest income of $228,000, or
876.9 percent, to $254,000 for the three months ended June 30, 2017
from $26,000 for the three months ended June 30, 2016. The increase
in total non-interest income was partly offset by a decrease in
gains on sale of loans of $296,000, or 28.8 percent, to $733,000
for the three months ended June 30, 2017 from $1.0 million for the
three months ended June 30, 2016. The increase in other
non-interest income related to $237,000 of proceeds from a legal
settlement in the second quarter.
Total non-interest expense decreased by $1.0
million, or 8.4 percent, to $11.1 million for the three months
ended June 30, 2017 from $12.1 million for the three months ended
June 30, 2016. Salaries and employee benefits decreased by
$282,000, or 4.6 percent, to $5.9 million for the three months
ended June 30, 2017 from $6.2 million for the three months ended
June 30, 2016, primarily related to a reduction in workforce over
the last 12 months. Data processing expense decreased by $155,000,
or 18.6 percent, to $678,000 for the three months ended June 30,
2017 from $833,000 for the three months ended June 30, 2016,
primarily related to cost efficiencies achieved with the conversion
to a new core system. Professional fee expense decreased by
$100,000, or 20.7 percent, to $383,000 for the three months ended
June 30, 2017 from $483,000 for the three months ended June 30,
2016, primarily related to a reduction in the utilization of third
party providers. Advertising expense decreased by $275,000, or 70.5
percent, to $115,000 for the three months ended June 30, 2017 from
$390,000 for the three months ended June 30, 2016, partly related
to advertising efforts with the opening of several de novo branches
in 2016. Other non-interest expense consisted of occupancy and
equipment, director fees, regulatory assessments, other real estate
owned (net), and other fees/expenses.
The income tax provision increased by $982,000, or
90.5 percent, to $2.1 million for the three months ended June 30,
2017 from $1.1 million for the three months ended June 30, 2016.
The increase in income tax provision was a result of higher taxable
income during the three-month period ended June 30, 2017 as
compared with the three months ended June 30, 2016. The
consolidated effective tax rate for the three months ended June 30,
2017 was 40.1 percent compared to 40.7 percent for the three months
ended June 30, 2016.
Operations for the six months ended June
30, 2017, compared with the six months ended June 30,
2016
Net income increased $2.4 million, or 66.1 percent,
to $6.0 million for the six months ended June 30, 2017 compared
with $3.6 million for the six months ended June 30, 2016. The
increase in net income was primarily related to increases in net
interest income and non-interest income, and a decrease in
non-interest expense, partly offset by an increase in the provision
for loan loss and a higher income tax provision for the six months
ended June 30, 2017 as compared to the six months ended June 30,
2016.
Net interest income increased by $2.6 million, or
9.6 percent, to $29.7 million for the six months ended June 30,
2017 from $27.1 million for the six months ended June 30, 2016. The
increase in net interest income is primarily related to an increase
in the average balance of total interest-earning assets of $74.3
million, or 4.5 percent, to $1.724 billion for the six months ended
June 30, 2017 as compared to $1.650 billion for the six months
ended June 30, 2016 as well as an increase in the average yield in
total interest-earning assets of 4 basis points, or 1.1 percent, to
4.35 percent for the six months ended June 30, 2017 from 4.31
percent for the six months ended June 30, 2016.
Interest income on loans receivable increased by
$812,000, or 2.3 percent, to $35.6 million for the six months ended
June 30, 2017 from $34.8 million for the six months ended June 30,
2016. The increase was primarily attributable to an increase in the
average balance of loans receivable of $105.2 million, or 7.3
percent, to $1.550 billion for the six months ended June 30, 2017
from $1.445 billion for the six months ended June 30, 2016, partly
offset by a decrease in the average yield on loans receivable of 22
basis points, or 4.6 percent, to 4.59 percent for the six months
ended June 30, 2017 from 4.81 percent for the six months ended June
30, 2016. 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 seven 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 investment securities increased
by $1.3 million, to $1.4 million for the six months ended June 30,
2017 from $124,000 for the six months ended June 30, 2016. The
increase in interest income on investment securities is primarily
related to an increase in the average balance of investment
securities of $79.5 million, or 378.8 percent, to $100.5 million
for the six months ended June 30, 2017 from $21.0 million for the
six months ended June 30, 2016 and an increase in the average yield
of 38 basis points, or 13.1 percent, to 3.27 percent, for the six
months ended June 30, 2017 from 2.89 percent for the six months
ended June 30, 2016.
Interest income on other interest-earning assets
decreased by $71,000, or 11.2 percent, to $561,000 for the six
months ended June 30, 2017 from $632,000 for the six months ended
June 30, 2016. The decrease was primarily related to a decrease in
the average balance of other interest-earning assets of $110.5
million, or 60.1 percent, to $73.3 million for the six months ended
June 30, 2017 from $183.8 million for the six months ended June 30,
2016, partly offset by an increase in the average yield on other
interest-earning assets of 43 basis points, or 104.3 percent, to
0.85 percent, for the six months ended June 30, 2017 from 0.42
percent for the six months ended June 30, 2016. The decrease in the
average balance of other interest-earning assets related to a
decrease in cash as funds were deployed for repayment of Federal
Home Loan Bank (“FHLB”) borrowings, purchases of investment
securities, and to fund loan growth, while the increase in the
average yield resulted primarily from increases in the Fed Funds
rate.
Total interest expense decreased by $595,000, or
7.0 percent, to $7.9 million for the six months ended June 30, 2017
from $8.5 million for the six months ended June 30, 2016. Despite
an increase in the average balance of interest-cost liabilities of
$61.1 million, or 4.4 percent, to $1.460 billion for the six months
ended June 30, 2017 from $1.399 billion for the six months ended
June 30, 2016, the average cost of funds decreased 13 basis points,
or 11.0 percent, to 1.08 percent for the six months ended June 30,
2017 from 1.21 percent for the six months ended June 30, 2016. The
average balance of total deposit liabilities increased by $106.7
million, or 9.0 percent, to $1.296 billion for the six months ended
June 30, 2017 from $1.190 billion for the six months ended June 30,
2016, and the average cost of deposits increased 1 basis point to
0.88 percent for the six months ended June 30, 2017 from 0.87
percent for the six months ended June 30, 2016. The average balance
of high-cost borrowings decreased by $45.7 million, or 21.8
percent, to 163.7 million for the six months ended June 30, 2017
from $209.4 million for the six months ended June 30, 2016, and the
average cost of borrowings decreased 50 basis points, or 16.0
percent, to 2.63 percent for the six months ended June 30, 2017
from 3.13 percent for the six months ended June 30, 2016. The
decrease in borrowings was the result of scheduled repayments of
Federal Home Loan Bank advances.
The net interest margin was 3.44 percent for the
six-month period ended June 30, 2017 and 3.28 percent for the six
month period ended June 30, 2016. The improvement in the net
interest margin was partly the result of the repayment of higher
cost FHLB borrowings in mid-2016, partly offset by 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 increased by $1.0
million, or 463.7 percent, to $1.3 million for the six months ended
June 30, 2017 from $226,000 for the six months ended June 30, 2016.
The provision for loan losses is established based upon
management’s review of the Company’s loans and consideration of a
variety of factors, including but not limited to: (1) the risk
characteristics of the loan portfolio; (2) current economic
conditions; (3) actual losses previously experienced; (4) the
dynamic activity and fluctuating balance of loans receivable; and
(5) the existing level of reserves for loan losses that are
probable and estimable. During the six months ended June 30, 2017,
the Company experienced $519,000 in net charge-offs compared to
$70,000 in net recoveries for the six months ended June 30, 2016.
The Bank had non-performing loans totaling $15.5 million, or 0.97
percent, of gross loans at June 30, 2017 and $15.7 million, or 1.04
percent, of gross loans at December 31, 2016. The allowance for
loan losses was $18.0 million, or 1.13 percent, of gross loans at
June 30, 2017, $17.2 million, or 1.15 percent, of gross loans at
December 31, 2016 and $18.3 million, or 1.27 percent, of gross
loans at June 30, 2016. The amount of the allowance is based
on estimates and the ultimate losses may vary from such estimates.
Management assesses the allowance for loan losses on a quarterly
basis and makes provisions for loan losses as necessary in order to
maintain the adequacy of the allowance. While management uses
available information to recognize losses on loans, future loan
loss provisions may be necessary based on changes in the
aforementioned criteria. In addition various regulatory agencies,
as an integral part of their examination process, periodically
review the allowance for loan losses and may require the Company to
recognize additional provisions based on their judgment of
information available to them at the time of their examination. The
increase in the allowance for loan loss reflected growth in the
loan portfolio. Management believes that the allowance for loan
losses was adequate at June 30, 2017 and December 31, 2016.
Total non-interest income increased by $1.1
million, or 37.2 percent, to $4.3 million for the six months ended
June 30, 2017 from $3.2 million for the six months ended June 30,
2016. Total non-interest income increased primarily as a result of
increased gain on sale of other real estate owned properties
increased by $1.3 million for the six months ended June 30, 2017
with no comparable gain for the six months ended June 30, 2016, an
increase in fees and service charges of $187,000, or 12.9 percent,
to $1.6 million for the six months ended June 30, 2017 from $1.4
million for the six months ended June 30, 2016, an increase in
other non-interest income of $237,000, or 526.7 percent, to
$282,000 for the six months ended June 30, 2017 from $45,000 for
the six months ended June 30, 2017 and a loss on the bulk sale of
impaired loans held in the portfolio of $285,000 for the six months
ended June 30, 2016 with no comparable sale for the six months
ended June 30, 2017. The increase in total non-interest income was
partly offset by a decrease in gain on sale of loans of $882,000,
or 45.2 percent, to $1.1 million for the six months ended June 30,
2017 from $2.0 million for the six months ended June 30, 2016. The
sales of loans and other real estate loans is generally based on
market conditions. The increase in other non-interest income
related to $237,000 of proceeds from a legal settlement in the
second quarter.
Total non-interest expense decreased by $1.2
million, or 5.0 percent, to $22.7 million for the six months ended
June 30, 2017 from $23.9 million for the six months ended June 30,
2016. Salaries and benefits expense decreased by $216,000, or 1.8
percent, to $12.0 million for the six months ended June 30, 2017
from $12.2 million for the six months ended June 30, 2016,
primarily related to a reduction in workforce over the last 12
months. Data processing expense decreased by $564,000, or 29.8
percent, to $1.3 million for the six months ended June 30, 2017
from $1.9 million for the six months ended June 30, 2016, primarily
related to cost efficiencies achieved with the conversion to a new
core system. Professional fee expense decreased by $164,000, or
18.0 percent, to $746,000 for the six months ended June 30, 2017
from $910,000 for the six months ended June 30, 2016, primarily
related to a reduction in the utilization of third party providers.
Advertising expense decreased by $495,000, or 65.7 percent, to
$258,000 for the six months ended June 30, 2017 from $753,000 for
the six months ended June 30, 2016, partly related to advertising
efforts with the opening of several de novo branches in 2016. Other
non-interest expense consisted of occupancy and equipment, director
fees, regulatory assessments, other real estate owned (net), and
other fees/expenses.
Income tax provision increased by $1.5 million, or
62.0 percent, to $4.0 million for the six months ended June 30,
2017 from $2.5 million for the six months ended June 30, 2016. The
increase in income tax provision was a result of higher taxable
income during the six months ended June 30, 2017 as compared with
the six months ended June 30, 2016. The consolidated effective tax
rate for the six months ended June 30, 2017 was 40.0 percent
compared to 40.6 percent for the six months ended June 30,
2016.
Financial Condition
Total assets increased by $107.2 million, or 6.3
percent, to $1.815 billion at June 30, 2017 from $1.708 billion at
December 31, 2016. The increase in total assets occurred primarily
as a result of an increase in loans receivable of $92.0 million, an
increase in cash and cash equivalents of $10.0 million, and an
increase in securities available for sale of $11.0 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.
Loans receivable increased by $92.0 million, or 6.2
percent, to $1.577 billion at June 30, 2017 from $1.485 billion at
December 31, 2016, and is consistent with the Company’s growth
strategy for 2017. The increase resulted primarily from increases
of $18.5 million in residential real estate loans, $65.6 million in
commercial real estate and multi-family loans, $2.5 million in
construction loans, $4.1 million in commercial business loans and
$2.1 million in home equity loans and home equity lines of credit.
As of June 30, 2017, the allowance for loan losses was $18.0
million, or 116.2 percent, of non-performing loans and 0.97 percent
of gross loans.
Total cash and cash equivalents increased by $10.0
million, or 15.4 percent, to $75.0 million at June 30, 2017 from
$65.0 million at December 31, 2016 due to the Company’s strategy to
increase our deposit base and success of our 17-month promotional
CD product in the first quarter of 2017.
Securities available for sale increased by $11.0
million, or 11.6 percent, to $105.8 million at June 30, 2017 from
$94.8 million at December 31, 2016 as the Company deployed excess
cash to improve returns on earning assets and liquidity.
Deposit liabilities increased by $104.1 million, or
7.5 percent, to $1.496 billion at June 30, 2017 from $1.392 billion
at December 31, 2016. The increase resulted primarily from
increases of $69.5 million in certificates of deposit, $11.1
million in NOW deposit accounts, $10.4 million in non-interest
bearing deposit accounts, $9.3 million in money market checking
accounts and $6.5 million in savings and club accounts. In addition
to organic deposit growth resulting from the opening of seven
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 $31.8
million and $17.9 million, respectively, at June 30, 2017.
Long-term debt increased by $8.0 million, or 5.2
percent, to $163.0 million at June 30, 2017 from $155.0 million at
December 31, 2016. 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 investment securities. Short-term debt decreased by
$9.0 million, or 45.0 percent, to $11.0 million at June 30, 2017
from $20.0 million at December 31, 2016. The weighted average
interest rate of borrowings was 2.26 percent at June 30, 2017.
Stockholders’ equity increased by $2.3 million, or
1.7 percent, to $133.4 million at June 30, 2017 from $131.1 million
at December 31, 2016. The increase in stockholders’ equity was
primarily attributable to proceeds received from the issuance of
$9.5 million of series D 4.5 percent non-cumulative perpetual
preferred stock, as well as an increase in retained earnings of
$2.6 million for the six months ended June 30, 2017, partly offset
by the redemption of $11.7 million of series A and B 6 percent
noncumulative perpetual preferred stock that occurred in the first
quarter of 2017. The Company accrued a dividend payable for the
second quarter on our outstanding preferred stock of $166,000 which
will be paid in the third quarter.
Mr. Coughlin added “After redeeming $11.7 million
of Series A and B 6.0 percent non-cumulative perpetual preferred
stock at the beginning of the year, we were successful in raising
$9.5 million of private placement Series D 4.5 percent
non-cumulative perpetual preferred stock in the first six months of
2017, in furtherance of our strategic capital plan.”
BCB BANCORP INC., AND
SUBSIDIARIES |
|
|
Financial condition data by
quarter |
|
(In thousands) |
|
Q2 2017 |
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,815,424 |
|
|
$ |
1,805,332 |
|
|
$ |
1,708,208 |
|
|
$ |
1,678,936 |
|
|
$ |
1,738,343 |
|
Cash and cash
equivalents |
|
75,047 |
|
|
|
114,422 |
|
|
|
65,038 |
|
|
|
137,707 |
|
|
|
235,774 |
|
Securities available
for sale |
|
105,803 |
|
|
|
106,183 |
|
|
|
94,765 |
|
|
|
52,907 |
|
|
|
18,365 |
|
Loans receivable,
net |
|
1,577,181 |
|
|
|
1,528,756 |
|
|
|
1,485,159 |
|
|
|
1,431,211 |
|
|
|
1,424,891 |
|
Deposits |
|
1,496,260 |
|
|
|
1,513,844 |
|
|
|
1,392,205 |
|
|
|
1,380,385 |
|
|
|
1,394,305 |
|
Borrowings |
|
174,000 |
|
|
|
155,000 |
|
|
|
175,000 |
|
|
|
155,000 |
|
|
|
200,000 |
|
Stockholders’
equity |
|
133,362 |
|
|
|
127,011 |
|
|
|
131,081 |
|
|
|
132,299 |
|
|
|
132,306 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating data by quarter |
|
(In thousands, except for per share
amounts) |
|
Q2 2017 |
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
15,063 |
|
|
$ |
14,605 |
|
|
$ |
14,402 |
|
|
$ |
13,597 |
|
|
$ |
13,363 |
|
Provision for loan
losses |
|
776 |
|
|
|
498 |
|
|
|
102 |
|
|
|
(301 |
) |
|
|
37 |
|
Non-interest
income |
|
2,022 |
|
|
|
2,313 |
|
|
|
1,433 |
|
|
|
1,530 |
|
|
|
1,506 |
|
Non-interest
expense |
|
11,148 |
|
|
|
11,562 |
|
|
|
11,649 |
|
|
|
12,343 |
|
|
|
12,166 |
|
Income tax expense |
|
2,067 |
|
|
|
1,945 |
|
|
|
1,611 |
|
|
|
1,171 |
|
|
|
1,085 |
|
Net income |
$ |
3,094 |
|
|
$ |
2,913 |
|
|
$ |
2,473 |
|
|
$ |
1,914 |
|
|
$ |
1,581 |
|
Net income per
share: |
$ |
0.26 |
|
|
$ |
0.25 |
|
|
$ |
0.20 |
|
|
$ |
0.15 |
|
|
$ |
0.12 |
|
Common Dividends
declared per share |
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios |
|
Q2 2017 |
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
Return on average
assets |
|
0.69 |
% |
|
|
0.68 |
% |
|
|
0.60 |
% |
|
|
0.44 |
% |
|
|
0.36 |
% |
Return on average
stockholder’s equity |
|
9.73 |
% |
|
|
9.48 |
% |
|
|
7.64 |
% |
|
|
5.84 |
% |
|
|
4.80 |
% |
Net interest
margin |
|
3.45 |
% |
|
|
3.43 |
% |
|
|
3.48 |
% |
|
|
3.22 |
% |
|
|
3.19 |
% |
Stockholder’s equity to
total assets |
|
7.35 |
% |
|
|
7.04 |
% |
|
|
7.67 |
% |
|
|
7.88 |
% |
|
|
7.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
(In thousands, except for per share
amounts) |
|
Q2 2017 |
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
Non-Accrual Loans |
$ |
15,456 |
|
|
$ |
16,987 |
|
|
$ |
15,652 |
|
|
$ |
19,345 |
|
|
$ |
21,067 |
|
Non-Accrual Loans as a
% of Total Loans |
|
0.97 |
% |
|
|
1.10 |
% |
|
|
1.04 |
% |
|
|
1.33 |
% |
|
|
1.45 |
% |
ALLL as % of
Non-Accrual Loans |
|
116.23 |
% |
|
|
103.17 |
% |
|
|
109.95 |
% |
|
|
90.93 |
% |
|
|
87.05 |
% |
Impaired Loans |
|
43,326 |
|
|
|
45,830 |
|
|
|
45,419 |
|
|
|
48,547 |
|
|
|
49,349 |
|
Classified Loans |
|
42,311 |
|
|
|
44,408 |
|
|
|
48,231 |
|
|
|
59,440 |
|
|
|
51,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCB Community Bank presently operates 22 branches
in Bayonne, Carteret, Colonia, Edison, Hoboken, Fairfield, Holmdel,
Jersey City, Lodi, Lyndhurst, Monroe Township, Rutherford, South
Orange, Union, and Woodbridge, New Jersey, and two branches 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) |
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
2017 |
|
2016 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Cash and amounts due
from depository institutions |
$ |
15,961 |
|
|
$ |
12,121 |
|
Interest-earning
deposits |
|
59,086 |
|
|
|
52,917 |
|
Total
cash and cash equivalents |
|
75,047 |
|
|
|
65,038 |
|
|
|
|
|
|
|
Interest-earning time
deposits |
|
980 |
|
|
|
980 |
|
Securities available
for sale |
|
105,803 |
|
|
|
94,765 |
|
Loans held for
sale |
|
536 |
|
|
|
4,153 |
|
Loans receivable, net
of allowance for loan losses |
|
|
|
|
|
|
|
of
$17,964 and $17,209 respectively |
|
1,577,181 |
|
|
|
1,485,159 |
|
Federal Home Loan Bank
of New York stock, at cost |
|
9,913 |
|
|
|
9,306 |
|
Premises and equipment,
net |
|
19,679 |
|
|
|
19,382 |
|
Accrued interest
receivable |
|
5,666 |
|
|
|
5,573 |
|
Other real estate
owned |
|
2,626 |
|
|
|
3,525 |
|
Deferred income
taxes |
|
8,414 |
|
|
|
9,953 |
|
Other assets |
|
9,579 |
|
|
|
10,374 |
|
Total Assets |
$ |
1,815,424 |
|
|
$ |
1,708,208 |
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Non-interest bearing
deposits |
$ |
168,885 |
|
|
$ |
158,523 |
|
Interest bearing
deposits |
|
1,327,375 |
|
|
|
1,233,682 |
|
Total
deposits |
|
1,496,260 |
|
|
|
1,392,205 |
|
Short-term debt |
|
11,000 |
|
|
|
20,000 |
|
Long-term debt |
|
163,000 |
|
|
|
155,000 |
|
Subordinated
debentures |
|
4,124 |
|
|
|
4,124 |
|
Other liabilities and
accrued interest payable |
|
7,678 |
|
|
|
5,798 |
|
Total Liabilities |
|
1,682,062 |
|
|
|
1,577,127 |
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Preferred stock: $0.01
par value, 10,000,000 shares authorized, |
|
|
|
|
|
issued
and outstanding 1,342 shares of series C 6 percent and series D 4.5
percent noncumulative |
|
|
|
|
|
perpetual
preferred stock (liquidation value $10,000 per share) at June 30,
2017 and 1,560 shares |
|
|
|
|
|
of series
A, B, C 6 percent noncumulative preferred stock at December 31,
2016 |
|
- |
|
|
|
- |
|
Additional paid-in
capital preferred stock |
|
13,241 |
|
|
|
15,464 |
|
Common stock; no par
value; 20,000,000 shares authorized, issued 13,831,203 and
13,797,088 |
|
|
|
|
|
at June
30, 2017 and December 31, 2016, respectively, outstanding
11,300,740 shares and |
|
|
|
|
|
11,267,225 shares, respectively |
|
- |
|
|
|
- |
|
Additional paid-in
capital common stock |
|
120,980 |
|
|
|
120,417 |
|
Retained earnings |
|
30,725 |
|
|
|
28,159 |
|
Accumulated other
comprehensive income (loss) |
|
(2,473 |
) |
|
|
(3,856 |
) |
Treasury stock, at
cost, 2,530,463 and 2,529,863 shares, respectively, at June 30,
2017 and December 31, 2016 |
|
(29,111 |
) |
|
|
(29,103 |
) |
Total Stockholders' Equity |
|
133,362 |
|
|
|
131,081 |
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
$ |
1,815,424 |
|
|
$ |
1,708,208 |
|
|
|
|
|
|
|
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, |
|
|
2017 |
|
|
2016 |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees |
$ |
18,026 |
|
$ |
17,263 |
|
|
$ |
35,568 |
|
$ |
34,756 |
|
Mortgage-backed securities |
|
603 |
|
|
50 |
|
|
|
1,131 |
|
|
124 |
|
Municipal
bonds and other debt |
|
159 |
|
|
- |
|
|
|
264 |
|
|
- |
|
FHLB
stock and other interest earning assets |
|
281 |
|
|
368 |
|
|
|
561 |
|
|
632 |
|
Total interest income |
|
19,069 |
|
|
17,681 |
|
|
|
37,524 |
|
|
35,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
677 |
|
|
470 |
|
|
|
1,350 |
|
|
832 |
|
Savings
and club |
|
100 |
|
|
93 |
|
|
|
199 |
|
|
182 |
|
Certificates of deposit |
|
2,142 |
|
|
2,126 |
|
|
|
4,153 |
|
|
4,160 |
|
|
|
2,919 |
|
|
2,689 |
|
|
|
5,702 |
|
|
5,174 |
|
Borrowed
money |
|
1,087 |
|
|
1,629 |
|
|
|
2,154 |
|
|
3,277 |
|
Total interest expense |
|
4,006 |
|
|
4,318 |
|
|
|
7,856 |
|
|
8,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
15,063 |
|
|
13,363 |
|
|
|
29,668 |
|
|
27,061 |
|
Provision for loan
losses |
|
776 |
|
|
37 |
|
|
|
1,274 |
|
|
226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income after provision for loan losses |
|
14,287 |
|
|
13,326 |
|
|
|
28,394 |
|
|
26,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
Fees and
service charges |
|
838 |
|
|
736 |
|
|
|
1,634 |
|
|
1,447 |
|
Gain on
sales of loans |
|
733 |
|
|
1,029 |
|
|
|
1,071 |
|
|
1,953 |
|
Loss on
bulk sale of impaired loans held in portfolio |
|
- |
|
|
(285 |
) |
|
|
- |
|
|
(285 |
) |
Gain on
sales of other real estate owned |
|
197 |
|
|
- |
|
|
|
1,348 |
|
|
- |
|
Other |
|
254 |
|
|
26 |
|
|
|
282 |
|
|
45 |
|
Total non-interest income |
|
2,022 |
|
|
1,506 |
|
|
|
4,335 |
|
|
3,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
5,878 |
|
|
6,160 |
|
|
|
11,968 |
|
|
12,184 |
|
Occupancy
and equipment |
|
1,989 |
|
|
2,043 |
|
|
|
4,147 |
|
|
3,915 |
|
Data
processing and service fees |
|
678 |
|
|
833 |
|
|
|
1,331 |
|
|
1,895 |
|
Professional fees |
|
383 |
|
|
483 |
|
|
|
746 |
|
|
910 |
|
Director
fees |
|
198 |
|
|
183 |
|
|
|
378 |
|
|
336 |
|
Regulatory assessments |
|
331 |
|
|
360 |
|
|
|
692 |
|
|
710 |
|
Advertising and promotional |
|
115 |
|
|
390 |
|
|
|
258 |
|
|
753 |
|
Other
real estate owned, net |
|
13 |
|
|
94 |
|
|
|
55 |
|
|
110 |
|
Other |
|
1,563 |
|
|
1,620 |
|
|
|
3,135 |
|
|
3,090 |
|
Total non-interest expense |
|
11,148 |
|
|
12,166 |
|
|
|
22,710 |
|
|
23,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income tax provision |
|
5,161 |
|
|
2,666 |
|
|
|
10,019 |
|
|
6,092 |
|
Income tax
provision |
|
2,067 |
|
|
1,085 |
|
|
|
4,012 |
|
|
2,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
3,094 |
|
$ |
1,581 |
|
|
$ |
6,007 |
|
$ |
3,616 |
|
Preferred stock
dividends |
|
165 |
|
|
234 |
|
|
|
283 |
|
|
468 |
|
Net Income
available to common stockholders |
$ |
2,929 |
|
$ |
1,347 |
|
|
$ |
5,724 |
|
$ |
3,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per
common share-basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.26 |
|
$ |
0.12 |
|
|
$ |
0.51 |
|
$ |
0.28 |
|
Diluted |
$ |
0.26 |
|
$ |
0.12 |
|
|
$ |
0.50 |
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
11,295 |
|
|
11,229 |
|
|
|
11,287 |
|
|
11,223 |
|
Diluted |
|
11,405 |
|
|
11,233 |
|
|
|
11,383 |
|
|
11,226 |
|
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)
Historical Stock Chart
From Mar 2024 to Apr 2024
BCB Bancorp (NASDAQ:BCBP)
Historical Stock Chart
From Apr 2023 to Apr 2024