BCB Bancorp, Inc. (the “Company”), Bayonne, NJ (NASDAQ:BCBP), the
holding company for BCB Community Bank (the “Bank”), announced net
income for the three and nine months ended September 30, 2017.
Net income was $3.2 million for the three months
ended September 30, 2017, compared with net income of $1.9 million
for the three months ended September 30, 2016. Basic and diluted
earnings per share were $0.25 for the three months ended September
30, 2017, compared with $0.15 for the three months ended September
30, 2016.
Net income was $8.6 million for the nine months
ended September 30, 2017, compared with $5.5 million for the nine
months ended September 30, 2016. Basic and diluted earnings per
share were $0.71 and $0.70, respectively, for the nine months ended
September 30, 2017, compared with $0.43 for the nine months ended
September 30, 2016.
Thomas Coughlin, President and Chief Executive
Officer, commented, "We are pleased with our sustained earnings
growth and with the progress of the seven branches opened in 2016.
In addition to 9.6% growth in total assets so far this year, our
net income has increased 56% over the same nine-month period last
year, and we are poised to finish the year with record earnings.
Our management team is committed to executing key deliverables in
accordance with our strategic plan and in keeping the momentum
moving forward.
“The issuance of 3,715,000 shares of the
Company’s common stock in September 2017 strengthened our capital
position. The proceeds of the offering will be deployed in a
controlled and effective manner to realize higher earnings and
increased value for our shareholders.
“We are continuing to move forward with our
merger with IA Bancorp, Inc. and are currently awaiting regulatory
approvals and IAB shareholder approval. We are excited about the
opportunity to further develop our existing markets in Jersey City
and Edison, and further opportunities in Parsippany, Plainsboro and
Hicksville, New York, three new, attractive markets for BCB.
Mr. Coughlin continued, “The Board of Directors
unanimously declared a quarterly cash dividend of $0.14 per common
share payable on November 17, 2017, with a record date of November
3, 2017. The continuation of our quarterly cash dividend reflects
the continued 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.”
Results of Operations comparison for the
Three Months Ended September 30, 2017 and 2016
Net income increased $1.3 million, or 68.1
percent, to $3.2 million for the three months ended September 30,
2017, compared with $1.9 million for the three months ended
September 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 losses and a higher income tax provision
for the three months ended September 30, 2017 as compared to the
three months ended September 30, 2016.
Net interest income increased by $2.0 million,
or 14.5 percent, to $15.6 million for the three months ended
September 30, 2017 from $13.6 million for the three months ended
September 30, 2016. The increase in net interest income resulted
primarily from an increase in the average balance on total interest
earning assets of $91.4 million, or 5.4 percent, to $1.779 billion
for the three months ended September 30, 2017 from $1.687 billion
for the three months ended September 30, 2016, as well as an
increase in the average yield on total interest earning assets of
16 basis points, or 3.8 percent, to 4.36 percent for the three
months ended September 30, 2017 from 4.20 percent for the three
months ended September 30, 2016.
Interest income on loans receivable increased by
$1.2 million or 7.0 percent, to $18.4 million for the three months
ended September 30, 2017 from $17.2 million for the three months
ended September 30, 2016. The increase was primarily attributable
to an increase in the average balance of loans receivable of $167.3
million, or 11.6 percent, to $1.610 billion for the three months
ended September 30, 2017 from $1.443 billion for the three months
ended September 30, 2016, partly offset by a decrease in the
average yield on loans receivable of 19 basis points, or 4.09
percent, to 4.57 percent for the three months ended September 30,
2017 from 4.76 percent for the three months ended September 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 equity and debt securities
increased by $527,000 to $694,000 for the three months ended
September 30, 2017 from $167,000 for the three months ended
September 30, 2016. The increase was primarily attributable to an
increase in the average balance of investment securities of $68.4
million, or 249.1 percent, to $95.8 million for the three months
ended September 30, 2017 from $27.4 million for the three months
ended September 30, 2016, and an increase in the average yield on
investment securities of 48 basis points, or 19.8 percent, to 2.90
percent, for the three months ended September 30, 2017 from 2.42
percent for the three months ended September 30, 2016. The increase
in the average balance and average yield of equity and debt
securities resulted from employing excess cash to improve returns
on earning assets and liquidity.
Interest income on other interest-earning assets
decreased by $60,000, or 16.1 percent, to $313,000 for the three
months ended September 30, 2017 from $373,000 for the three months
ended September 30, 2016. The decrease was primarily attributable
to a decrease in the average balance of other interest-earning
assets of $144.3 million, or 66.5 percent, to $72.7 million for the
three months ended September 30, 2017 from $217.0 million for the
three months ended September 30, 2016 as well as an increase in the
average yield of other interest-earning deposits of 103 basis
points, or 149.8 percent, to 1.72 percent for the three months
ended September 30, 2017 from 0.69 percent for the three months
ended September, 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 $302,000, or
7.3 percent, to $3.8 million for the three months ended September
30, 2017 from $4.1 million for the three months ended September 30,
2016. Despite an increase in the average balance of
interest-bearing liabilities of $56.3 million, or 3.9 percent, to
$1.484 billion for the three months ended September 30, 2017 from
$1.428 billion for the three months ended September 30, 2016, the
average cost of funds decreased 13 basis points, or 10.8 percent,
to 1.03 percent for the three months ended September 30, 2017 from
1.16 percent for the three months ended September 30, 2016. The
average balance of total deposit liabilities increased by $89.1
million, or 7.2 percent, to $1.333 billion for the three months
ended September 30, 2017 from $1.244 billion for the three months
ended September 30, 2016, and the average cost of deposits
increased by 4 basis points, or 4.2 percent, to 0.93 percent for
the three months ended September 30, 2017 from 0.89 percent for the
three months ended September 30, 2016. The average balance of
borrowings decreased by $32.8 million, or 17.8 percent, to $151.7
million for the three months ended September 30, 2017 from $184.5
million for the three months ended September 30, 2016, and the
average cost of borrowings decreased 101 basis points, or 33.7
percent, to 1.97 percent, for the three months ended September 30,
2017 from 2.98 percent for the three months ended September 30,
2016. The net decrease in borrowings was primarily the result of
scheduled repayments of high-cost Federal Home Loan Bank
advances.
Net interest margin was 3.50 percent for the
three-month period ended September 30, 2017 and 3.22 percent for
the three-month period ended September 30, 2016. The improvement in
the net interest margin was primarily the result of the repayment
of higher cost FHLB borrowings in 2017, partly offset by
competitive pressures in attracting new loans and deposits, as
evidenced by a decline in the average yield on loans and a slight
increase in the average cost of deposit liabilities.
The provision for loan losses increased by
$812,000 to $511,000 for the three months ended September 30, 2017
from ($301,000) for the three months ended September 30, 2016. The
negative provision for loan losses in the prior period reflects the
excess specific provisions previously accrued on certain loans that
were settled in that period. 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 September 30, 2017, the Company experienced $26,000 in net
charge-offs compared to $447,000 in net charge-offs for the three
months ended September 30, 2016. The Bank had non-performing loans
totaling $17.0 million, or 1.03 percent, of gross loans at
September 30, 2017 and $15.7 million, or 1.04 percent, of gross
loans at December 31, 2016. The allowance for loan losses was $18.4
million, or 1.12 percent, of gross loans at September 30, 2017,
$17.2 million, or 1.14 percent, of gross loans at December 31, 2016
and $17.6 million, or 1.21 percent, of gross loans at September 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
September 30, 2017 and December 31, 2016.
Total non-interest income increased by $103,000,
or 6.7 percent, to $1.6 million for the three months ended
September 30, 2017 from $1.5 million for the three months ended
September 30, 2016. The increase was primarily attributable to
gains on sales on other real estate owned properties of $222,000
for the three months ended September 30, 2017 with no comparable
sales for the three months ended September 30, 2016, a gain on
sales of investment securities of $97,000 for the three months
ended September 30, 2017 with no comparable sales for the three
months ended September 30, 2016, a loss on bulk sale of impaired
loans held in the portfolio of $88,000 for the three months ended
September 30, 2016 with no comparable sale for the three months
ended September 30, 2017. The increase in total non-interest income
was partly offset by a decrease in gains on sale of loans of
$178,000, or 24.8 percent, to 540,000, for the three months ended
September 30, 2017 from $718,000 for the three months ended
September 30, 2016, as well as a decrease in fees and service
charges of $124,000, or 14.2 percent, to $749,000 for the three
months ended September 30, 2017, from $873,000 for the three months
ended September 30, 2016.
Total non-interest expense decreased by $1.0
million, or 8.5 percent, to $11.3 million for the three months
ended September 30, 2017 from $12.3 million for the three months
ended September 30, 2016. Salaries and employee benefits decreased
by $822,000, or 12.2 percent, to $5.9 million for the three months
ended September 30, 2017 from $6.7 million for the three months
ended September 30, 2016, primarily related to a reduction in
workforce over the last 12 months. Advertising expense decreased by
$365,000, or 75.7 percent, to $117,000 for the three months ended
September 30, 2017 from $482,000 for the three months ended
September 30, 2016, partly related to advertising efforts with the
opening of several de novo branches in 2016. Occupancy and
equipment expense decreased by $154,000, or 7.0 percent, to $2.0
million for the three months ended September 30, 2017 from $ 2.2
million for the three months ended September 30, 2016, also related
to costs associated with opening de novo branches in 2016.
Regulatory assessment expense decreased by $111,000, or 25.9
percent, to $318,000 for the three months ended September 30, 2017
from $429,000 for the three months ended September 30, 2016,
primarily related to lower FDIC rates. The decrease in total
non-interest expense was partly offset by an increase in data
processing expense of $345,000, or 96.4 percent, to $703,000 for
the three months ended September 30, 2017 from $358,000 for the
three months ended September 30, 2016, mainly attributable to
credit adjustments related to the new core processing system in the
prior year period. 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 $1.0
million or 86.2 percent, to $2.2 million for the three months ended
September 30, 2017 from $1.2 million for the three months ended
September 30, 2016. The increase in income tax provision was a
result of higher taxable income during the three-month period ended
September 30, 2017 as compared with the three months ended
September 30, 2016. The consolidated effective tax rate for the
three months ended September 30, 2017 was 40.0 percent compared to
39.7 percent for the three months ended September 30, 2016.
Results of Operations comparison for the
Nine Months Ended September 30, 2017 and 2016
Net income increased $3.1 million, or 56.3
percent, to $8.6 million for the nine months ended September 30,
2017 compared with $5.5 million for the nine months ended September
30, 2016. The increase in net income was primarily related to
increases in total interest income, a decrease in total interest
expense, an increase in total non-interest income, and a decrease
in non-interest expense, partly offset by an increase in the
provision for loan losses and a higher income tax provision for the
nine months September 30, 2017 as compared to the nine months ended
September 30, 2016.
Net interest income increased by $4.6 million,
or 11.3 percent, to $45.2 million for the nine months ended
September 30, 2017 from $40.6 million for the nine months ended
September 30, 2016. The increase in net interest income was
primarily related to an increase in the average balance of total
interest-earning assets of $80.0 million, or 4.8 percent, to $1.742
billion for the nine months ended September 30, 2017 as compared to
$1.662 billion for the nine months ended September 30, 2016 as well
as an increase in the average yield in total interest-earning
assets of 9 basis points, or 2.0 percent, to 4.36 percent for the
nine months ended September 30, 2017 from 4.27 percent for the nine
months ended September 30, 2016.
Interest income on loans receivable increased by
$2.0 million, or 3.9 percent, to $54.0 million for the nine months
ended September 30, 2017 from $52.0 million for the nine months
ended September 30, 2016. The increase was primarily attributable
to an increase in the average balance of loans receivable of $126.5
million, or 8.8 percent, to $1.570 billion for the nine months
ended September 30, 2017 from $1.443 billion for the nine months
ended September 30, 2016, partly offset by a decrease in the
average yield on loans receivable of 22 basis points, or 4.5
percent, to 4.58 percent for the nine months ended September 30,
2017 from 4.80 percent for the nine months ended September 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 in 2016. 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 equity and debt securities
increased by $1.8 million to $2.1 million for the nine months ended
September 30, 2017 from $291,000 for the nine months ended
September 30, 2016. This increase in was primarily related to an
increase in the average balance of investment securities of $77.0
million, or 487.4 percent, to $92.8 million for the nine months
ended September 30, 2017 from $15.8 million for the nine months
ended September 30, 2016, and an increase in the average yield of
54 basis points, or 22.2 percent, to 3.0 percent, for the nine
months ended September 30, 2017 from 2.46 percent for the nine
months ended September 30, 2016. The increase in the average
balance and average yield of equity and debt securities resulted
from employing excess cash to improve returns on earning assets and
liquidity.
Interest income on other interest-earning assets
decreased by $131,000, or 13.0 percent, to $874,000 for the nine
months ended September 30, 2017 from $1.0 million for the nine
months ended September 30, 2016. The decrease was primarily related
to a decrease in the average balance on other interest-earning
assets $123.4 million, or 60.9 percent, to $79.2 million for the
nine months ended September 30, 2017 from $202.6 million for the
nine months ended September 30, 2016, partly offset by an increase
in the average yield of other interest-earning assets of 81 basis
points, or 122.6 percent, to 1.47 percent for the nine months ended
September 30, 2017 from 0.66 percent for the nine months ended
September 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 $897,000, or
7.1 percent, to $11.7 million for the nine months ended September
30, 2017 from $12.6 million for the nine months ended September 30,
2016. Despite an increase in the average balance of
interest-bearing liabilities of $59.5 million, or 4.2 percent, to
$1.468 billion for the nine months ended September 30, 2017 from
$1.409 billion for the nine months ended September 30, 2016, the
average cost of funds decreased 13 basis points, or 10.9 percent,
to 1.06 percent for the nine months ended September 30, 2017 from
1.19 percent for the nine months ended September 30, 2016. The
average balance of total deposit liabilities increased by $100.9
million, or 8.4 percent, to $1.309 billion for the nine months
ended September 30, 2017 from $1.208 billion for the nine months
ended September 30, 2016, and the average cost of deposits
increased 2 basis points to 0.90 percent for the nine months ended
September 30, 2017 from 0.88 percent for the nine months ended
September 30, 2016. The average balance of borrowings decreased by
$41.4 million, or 20.6 percent, to $159.7 million for the nine
months ended September 30, 2017 from $201.1 million for the nine
months ended September 30, 2016, and the average cost of borrowings
decreased 66 basis points, or 21.4 percent, to 2.42 percent for the
nine months ended September 30, 2017 from 3.08 percent for the nine
months ended September 30, 2016. The decrease in borrowings was
primarily the result of scheduled repayments of high-cost Federal
Home Loan Bank advances.
The net interest margin was 3.46 percent for the
nine-month period ended September 30, 2017 and 3.26 percent for the
nine-month period ended September 30, 2016. The improvement in the
net interest margin was primarily the result of the repayment of
higher cost FHLB borrowings in 2017, partly offset by competitive
pressures in attracting new loans and deposits, as evidenced by a
decline in the average yield on loans and a slight increase in the
average cost of deposit liabilities.
The provision for loan losses increased by $1.9
million, to $1.8 million for the nine months ended September 30,
2017 from ($75,000) for the nine months ended September 30, 2016.
The negative provision for loan losses in the prior period reflects
the excess specific provisions previously accrued on certain loans
that were settled in that period. 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 nine months
ended September 30, 2017, the Company experienced $546,000 in net
charge-offs compared to $377,000 in net recoveries for the nine
months ended September 30, 2016. The Bank had non-performing loans
totaling $17.0 million, or 1.03 percent, of gross loans at
September 30, 2017 and $15.7 million, or 1.04 percent, of gross
loans at December 31, 2016. The allowance for loan losses was $18.4
million, or 1.12 percent, of gross loans at September 30, 2017,
$17.2 million, or 1.14 percent, of gross loans at December 31, 2016
and $17.6 million, or 1.21 percent, of gross loans at September 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 September 30, 2017 and December 31, 2016.
Total non-interest income increased by $1.3
million, or 27.2 percent, to $6.0 million for the nine months ended
September 30, 2017 form $4.7 million for the nine months ended
September 30, 2016. Total non-interest income increased primarily
as a result of gains on sale of other real estate owned properties
of $1.6 million for the nine months ended September 30, 2017 with
no comparable gain for the nine months ended September 30, 2016, a
loss on bulk sale of impaired loans held in the portfolio of
$373,000 for the nine months ended September 30, 2016 with no
comparable sale for the nine months ended September 30, 2017, an
increase in other non-interest income of $235,000, or 326.4
percent, to $307,000 for the nine months ended September 30, 2017
from $72,000 for the nine months ended September 30, 2016, a gain
on sale of investment securities of $97,000 for the nine months
ended September 30, 2017 with no comparable sale for the nine
months ended September 30, 2016, partly offset by a decrease in
gains on sales of loans of $1.1 million, or 39.7 percent, to $1.6
million for the nine months ended September 30, 2017 from $2.7
million for the nine months ended September 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
of 2017.
Total non-interest expense decreased by $1.2
million, or 3.4 percent, to $35.0 million for the nine months ended
September 30, 2017 from $36.2 million for the nine months ended
September 30, 2016. Salaries and benefits decreased by $1.0
million, or 5.5 percent, to $17.9 million for the nine months ended
September 30, 2017 from $18.9 million for the nine months ended
September 30, 2016, primarily related to a reduction in workforce
over the last 12 months. Advertising expense decreased by $860,000,
or 69.6 percent, to $375,000 for the nine months ended September
30, 2017 from $1.2 million for the nine months ended September 30,
2016, partly related to advertising efforts with the opening of
several de novo branches throughout 2016. Data processing expense
decreased by $219,000, or 9.7 percent, to $2.0 million for the nine
months ended September 30, 2017 from $2.2 million for the nine
months ended September 30, 2016, primarily related to cost
efficiencies achieved with the conversion to a new core system.
Regulatory assessment expense decreased by $129,000, or 11.3
percent, to $1.0 million for the nine months ended September 30,
2017 from $1.1 million for the nine months ended September 30,
2016, primarily related to lower FDIC rates. Professional fee
expense increased by $870,000, or 63.6 percent, to $2.2 million for
the nine months ended September 30, 2017 from $1.3 million for the
nine months ended September 30, 2016, primarily related to
counsel fees and litigation expenses awarded to the plaintiff’s
class counsel of $1.0 million in the matter of Kube v. Pamrapo
Bancorp, Inc. et al. 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 $2.1 million,
or 58.3 percent, to $5.8 million for the nine months ended
September 30, 2017 from $3.7 million for the nine months ended
September 30, 2016. The increase in income tax provision was a
result of higher taxable income during the nine months ended
September 30, 2017 as compared with the nine months ended September
30, 2016. The consolidated effective tax rate for the nine months
ended September 30, 2017 was 40.0 percent compared to 39.7 percent
for the nine months ended September 30, 2016.
Financial Condition
Total assets increased by $163.5 million, or 9.6
percent, to $1.872 billion at September 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 $134.1
million, an increase in cash and cash equivalents of $32.6 million,
and an increase in securities available for sale of $5.3 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 $134.1 million, or
9.0 percent, to $1.619 billion at September 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 $114.4 million in commercial real estate and
multi-family loans, $30.7 million in residential one-to-four family
loans, and $1.2 million in home equity loans, partly offset by
decreases in construction loans of $10.2 million, commercial
business loans of $844,000, and consumer loans of $99,000. As of
September 30, 2017, the allowance for loan losses was $18.4 million
or 108.8 percent, of non-performing loans and 1.12 percent of gross
loans.
Total cash and cash equivalents increased by
$32.6 million, or 50.1 percent, to $97.6 million at September 30,
2017 from $65.0 million at December 31, 2016 primarily due to the
Company’s capital raise in the third quarter and the Company’s
strategy to increase our deposit base including the success of our
17-month promotional CD product in the first quarter of 2017.
Securities available for sale increased by $5.3
million, or 5.6 percent, to $100.1 million at September 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 $153.9 million,
or 11.1 percent, to $1.546 billion at September 30, 2017 from
$1.392 billion at December 31, 2016. The increase resulted
primarily from increases of $102.9 million in certificates of
deposit, $19.9 million in NOW deposit accounts, and $10.7 million
in non-interest bearing deposit accounts, $17.1 million in money
market checking accounts and $1.2 million in savings and club
accounts. In addition to organic deposit growth resulting from the
opening of seven additional branches in 2016, the Company has also
added listing service certificates of deposit and brokered
certificates of deposit to fund loan growth, which totaled $36.9
million and $42.1 million, respectively, at September 30, 2017.
Long-term debt decreased by $17.0 million, or
11.0 percent, to $138.0 million at September 30, 2017 from $155.0
million at December 31, 2016, the net result of scheduled
maturities of FHLB advances and the issuance of new 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
investment securities. Short-term debt borrowings of $20.0 million
at December 31, 2016 were repaid in 2017. The weighted average
interest rate of borrowings was 1.71 percent at September 30,
2017.
Stockholders’ equity increased by $46.5 million,
or 35.5 percent, to $177.6 million at September 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 $42.8 million of common stock, 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 $3.5 million for the nine months ended September 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 third quarter on our outstanding preferred
stock of $166,000 which will be paid in the fourth quarter.
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BCB BANCORP INC., AND
SUBSIDIARIES |
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Financial condition data by
quarter |
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Q3 2017 |
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Q2 2017 |
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Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
Total assets |
$ |
1,871,740 |
|
|
$ |
1,815,843 |
|
|
$ |
1,805,332 |
|
|
$ |
1,708,208 |
|
|
$ |
1,678,936 |
|
|
$ |
1,738,343 |
|
Cash and cash
equivalents |
|
97,618 |
|
|
|
75,047 |
|
|
|
114,422 |
|
|
|
65,038 |
|
|
|
137,707 |
|
|
|
235,774 |
|
Securities available
for sale |
|
100,077 |
|
|
|
105,803 |
|
|
|
106,183 |
|
|
|
94,765 |
|
|
|
52,907 |
|
|
|
18,365 |
|
Loans receivable,
net |
|
1,619,245 |
|
|
|
1,577,181 |
|
|
|
1,528,756 |
|
|
|
1,485,159 |
|
|
|
1,431,211 |
|
|
|
1,424,891 |
|
Deposits |
|
1,546,148 |
|
|
|
1,496,260 |
|
|
|
1,513,844 |
|
|
|
1,392,205 |
|
|
|
1,380,385 |
|
|
|
1,394,305 |
|
Borrowings |
|
138,000 |
|
|
|
174,000 |
|
|
|
155,000 |
|
|
|
175,000 |
|
|
|
155,000 |
|
|
|
200,000 |
|
Stockholders’
equity |
|
177,568 |
|
|
|
132,781 |
|
|
|
127,011 |
|
|
|
131,081 |
|
|
|
132,299 |
|
|
|
132,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating data by quarter |
|
Q3 2017 |
|
Q2 2017 |
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except for per share amounts) |
|
|
Net interest
income |
$ |
15,574 |
|
|
$ |
15,063 |
|
|
$ |
14,605 |
|
|
$ |
14,402 |
|
|
$ |
13,597 |
|
|
$ |
13,363 |
|
Provision for loan
losses |
|
511 |
|
|
|
776 |
|
|
|
498 |
|
|
|
102 |
|
|
|
(301 |
) |
|
|
37 |
|
Non-interest
income |
|
1,633 |
|
|
|
2,022 |
|
|
|
2,313 |
|
|
|
1,433 |
|
|
|
1,530 |
|
|
|
1,506 |
|
Non-interest
expense |
|
11,299 |
|
|
|
12,148 |
|
|
|
11,562 |
|
|
|
11,649 |
|
|
|
12,343 |
|
|
|
12,166 |
|
Income tax expense |
|
2,180 |
|
|
|
1,648 |
|
|
|
1,945 |
|
|
|
1,611 |
|
|
|
1,171 |
|
|
|
1,085 |
|
Net income |
$ |
3,217 |
|
|
$ |
2,513 |
|
|
$ |
2,913 |
|
|
$ |
2,473 |
|
|
$ |
1,914 |
|
|
$ |
1,581 |
|
Net income per
share: |
$ |
0.25 |
|
|
$ |
0.21 |
|
|
$ |
0.25 |
|
|
$ |
0.20 |
|
|
$ |
0.15 |
|
|
$ |
0.12 |
|
Common Dividends
declared per share |
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios |
|
Q3 2017 |
|
Q2 2017 |
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
Return on average
assets |
|
0.70 |
% |
|
|
0.56 |
% |
|
|
0.68 |
% |
|
|
0.60 |
% |
|
|
0.44 |
% |
|
|
0.36 |
% |
Return on average
stockholder’s equity |
|
9.17 |
% |
|
|
7.90 |
% |
|
|
9.48 |
% |
|
|
7.64 |
% |
|
|
5.84 |
% |
|
|
4.80 |
% |
Net interest
margin |
|
3.50 |
% |
|
|
3.45 |
% |
|
|
3.43 |
% |
|
|
3.48 |
% |
|
|
3.22 |
% |
|
|
3.19 |
% |
Stockholder’s equity to
total assets |
|
9.49 |
% |
|
|
7.31 |
% |
|
|
7.04 |
% |
|
|
7.67 |
% |
|
|
7.88 |
% |
|
|
7.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
(In thousands, except for per share
amounts) |
|
Q3 2017 |
|
Q2 2017 |
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
Non-Accrual Loans |
$ |
16,958 |
|
|
$ |
15,456 |
|
|
$ |
16,987 |
|
|
$ |
15,652 |
|
|
$ |
19,345 |
|
|
$ |
21,067 |
|
Non-Accrual Loans as a
% of Total Loans |
|
1.03 |
% |
|
|
0.97 |
% |
|
|
1.10 |
% |
|
|
1.04 |
% |
|
|
1.33 |
% |
|
|
1.45 |
% |
ALLL as % of
Non-Accrual Loans |
|
108.79 |
% |
|
|
116.23 |
% |
|
|
103.17 |
% |
|
|
109.95 |
% |
|
|
90.93 |
% |
|
|
87.05 |
% |
Impaired Loans |
|
40,992 |
|
|
|
43,326 |
|
|
|
45,830 |
|
|
|
45,419 |
|
|
|
48,547 |
|
|
|
49,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Contact Thomas Keating, Senior Vice President
and Chief Financial Officer – 201.823.0700 or Thomas Coughlin,
President and Chief Executive Officer – 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.
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) |
|
|
|
|
|
September 30, |
|
December 31, |
|
2017 |
|
2016 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Cash
and amounts due from depository institutions |
$ |
15,035 |
|
|
$ |
12,121 |
|
Interest-earning deposits |
|
82,583 |
|
|
|
52,917 |
|
Total
cash and cash equivalents |
|
97,618 |
|
|
|
65,038 |
|
|
|
|
|
|
|
Interest-earning time deposits |
|
980 |
|
|
|
980 |
|
Securities available for sale |
|
100,077 |
|
|
|
94,765 |
|
Loans
held for sale |
|
2,484 |
|
|
|
4,153 |
|
Loans
receivable, net of allowance for loan losses |
|
|
|
|
|
of
$18,449 and $17,209 respectively |
|
1,619,245 |
|
|
|
1,485,159 |
|
Federal Home Loan Bank of New York stock, at cost |
|
8,096 |
|
|
|
9,306 |
|
Premises and equipment, net |
|
19,259 |
|
|
|
19,382 |
|
Accrued interest receivable |
|
5,808 |
|
|
|
5,573 |
|
Other
real estate owned |
|
1,410 |
|
|
|
3,525 |
|
Deferred income taxes |
|
6,481 |
|
|
|
9,953 |
|
Other
assets |
|
10,282 |
|
|
|
10,374 |
|
Total Assets |
$ |
1,871,740 |
|
|
$ |
1,708,208 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Non-interest bearing deposits |
$ |
169,222 |
|
|
$ |
158,523 |
|
Interest bearing deposits |
|
1,376,926 |
|
|
|
1,233,682 |
|
Total
deposits |
|
1,546,148 |
|
|
|
1,392,205 |
|
Short-term debt |
|
- |
|
|
|
20,000 |
|
Long-term debt |
|
138,000 |
|
|
|
155,000 |
|
Subordinated debentures |
|
4,124 |
|
|
|
4,124 |
|
Other
liabilities and accrued interest payable |
|
5,900 |
|
|
|
5,798 |
|
Total Liabilities |
|
1,694,172 |
|
|
|
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% and series D 4.5%
noncumulative |
|
|
|
|
|
perpetual
preferred stock (liquidation value $10,000 per share) at September
30, 2017 and 1,560 shares |
|
|
|
|
|
of series
A, B, C 6% 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
17,562,454 and 13,797,088 |
|
|
|
|
|
at
September 30, 2017 and December 31, 2016, respectively, outstanding
15,031,691 shares and |
|
|
|
|
|
11,267,225 shares, respectively |
|
- |
|
|
|
- |
|
Additional paid-in capital common stock |
|
164,010 |
|
|
|
120,417 |
|
Retained earnings |
|
31,613 |
|
|
|
28,159 |
|
Accumulated other comprehensive income (loss) |
|
(2,180 |
) |
|
|
(3,856 |
) |
Treasury stock, at cost, 2,530,763 and 2,529,863 shares,
respectively, at September 30, 2017 and December 31, 2016 |
|
(29,116 |
) |
|
|
(29,103 |
) |
Total Stockholders' Equity |
|
177,568 |
|
|
|
131,081 |
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
$ |
1,871,740 |
|
|
$ |
1,708,208 |
|
|
|
|
|
|
|
|
|
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, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees |
$ |
18,399 |
|
$ |
17,191 |
|
|
$ |
53,967 |
|
$ |
51,947 |
|
Mortgage-backed securities |
|
581 |
|
|
167 |
|
|
|
1,712 |
|
|
291 |
|
Municipal
bonds and other debt |
|
113 |
|
|
- |
|
|
|
377 |
|
|
- |
|
FHLB
stock and other interest earning assets |
|
313 |
|
|
373 |
|
|
|
874 |
|
|
1,005 |
|
Total interest income |
|
19,406 |
|
|
17,731 |
|
|
|
56,930 |
|
|
53,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
700 |
|
|
585 |
|
|
|
2,050 |
|
|
1,417 |
|
Savings
and club |
|
100 |
|
|
99 |
|
|
|
299 |
|
|
281 |
|
Certificates of deposit |
|
2,284 |
|
|
2,077 |
|
|
|
6,437 |
|
|
6,237 |
|
|
|
3,084 |
|
|
2,761 |
|
|
|
8,786 |
|
|
7,935 |
|
Borrowed
money |
|
748 |
|
|
1,373 |
|
|
|
2,902 |
|
|
4,650 |
|
Total interest expense |
|
3,832 |
|
|
4,134 |
|
|
|
11,688 |
|
|
12,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
15,574 |
|
|
13,597 |
|
|
|
45,242 |
|
|
40,658 |
|
Provision (credit) for
loan losses |
|
511 |
|
|
(301 |
) |
|
|
1,785 |
|
|
(75 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income after provision for loan losses |
|
15,063 |
|
|
13,898 |
|
|
|
43,457 |
|
|
40,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
Fees and
service charges |
|
749 |
|
|
873 |
|
|
|
2,383 |
|
|
2,320 |
|
Gain on
sales of loans |
|
540 |
|
|
718 |
|
|
|
1,611 |
|
|
2,671 |
|
Loss on
bulk sale of impaired loans held in portfolio |
|
- |
|
|
(88 |
) |
|
|
- |
|
|
(373 |
) |
Gain on
sales of other real estate owned |
|
222 |
|
|
- |
|
|
|
1,570 |
|
|
- |
|
Gain on
sale of investment securities |
|
97 |
|
|
- |
|
|
|
97 |
|
|
- |
|
Other |
|
25 |
|
|
27 |
|
|
|
307 |
|
|
72 |
|
Total non-interest income |
|
1,633 |
|
|
1,530 |
|
|
|
5,968 |
|
|
4,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
5,925 |
|
|
6,747 |
|
|
|
17,893 |
|
|
18,931 |
|
Occupancy
and equipment |
|
2,038 |
|
|
2,192 |
|
|
|
6,185 |
|
|
6,107 |
|
Data
processing and service fees |
|
703 |
|
|
358 |
|
|
|
2,034 |
|
|
2,253 |
|
Professional fees |
|
491 |
|
|
457 |
|
|
|
2,237 |
|
|
1,367 |
|
Director
fees |
|
198 |
|
|
183 |
|
|
|
576 |
|
|
519 |
|
Regulatory assessments |
|
318 |
|
|
429 |
|
|
|
1,010 |
|
|
1,139 |
|
Advertising and promotional |
|
117 |
|
|
482 |
|
|
|
375 |
|
|
1,235 |
|
Other
real estate owned, net |
|
9 |
|
|
36 |
|
|
|
64 |
|
|
146 |
|
Other |
|
1,500 |
|
|
1,459 |
|
|
|
4,635 |
|
|
4,549 |
|
Total non-interest expense |
|
11,299 |
|
|
12,343 |
|
|
|
35,009 |
|
|
36,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income tax provision |
|
5,397 |
|
|
3,085 |
|
|
|
14,416 |
|
|
9,177 |
|
Income tax
provision |
|
2,180 |
|
|
1,171 |
|
|
|
5,773 |
|
|
3,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
3,217 |
|
$ |
1,914 |
|
|
$ |
8,643 |
|
$ |
5,530 |
|
Preferred stock
dividends |
|
166 |
|
|
234 |
|
|
|
449 |
|
|
702 |
|
Net Income
available to common stockholders |
$ |
3,051 |
|
$ |
1,680 |
|
|
$ |
8,194 |
|
$ |
4,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per
common share-basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.25 |
|
$ |
0.15 |
|
|
$ |
0.71 |
|
$ |
0.43 |
|
Diluted |
$ |
0.25 |
|
$ |
0.15 |
|
|
$ |
0.70 |
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
12,142 |
|
|
11,246 |
|
|
|
11,572 |
|
|
11,230 |
|
Diluted |
|
12,226 |
|
|
11,258 |
|
|
|
11,664 |
|
|
11,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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