BCB Bancorp, Inc. (the “Company”), Bayonne, NJ (NASDAQ: BCBP), the
holding company for BCB Community Bank (the “Bank”), today reported
record profits for 2018, fueled by positive operating leverage from
the acquisition of IA Bancorp, Inc. (“IAB”) in the second quarter
of 2018, lower federal income taxes and a strong net interest
margin. Net income for the full year 2018 increased by $6.8
million, or 67.9 percent, to $16.8 million, or $1.02 per basic
share, compared to $10.0 million, or $0.76 per basic share, in
2017. For the fourth quarter of 2018, net income increased to
$5.2 million, or $0.31 per basic share, compared to $4.6 million,
or $0.27 per basic share, in the preceding quarter. In the
fourth quarter of 2017, following the reevaluation of the Company’s
net deferred tax asset by $2.2 million due to tax reforms enacted
in 2017, net income was $1.3 million, or $0.08 per basic share.
“We generated record fourth quarter and full
year 2018 financial results, highlighted by strong net interest
income, a stable net interest margin and the successful integration
of the IAB acquisition which we completed earlier this year,”
stated Thomas Coughlin, President and Chief Executive
Officer. “The tax reform legislation enacted last year has
provided us with a lower corporate tax rate, which will continue to
benefit us as we grow our franchise. We remain focused on
looking for additional growth opportunities both within our
existing footprint and surrounding markets.”
The IAB acquisition, which was completed during
the second quarter of 2018, added approximately $215.8 million in
assets, $178.4 million in deposits and $182.5 million in net
loans.
2018 Financial Highlights
- Net income was $16.8 million, or
$1.02 per basic share, in 2018, compared to $10.0 million, or $0.76
per basic share, in 2017.
- Earnings per diluted share
increased to $1.01 in 2018 compared to $0.75 in 2017.
- Net interest income, before the
provision for loan losses, increased 25.5 percent to $77.7 million
in 2018 compared to $61.9 million in 2017.
- Net interest margin was 3.31
percent in 2018 compared to 3.49 percent in 2017.
- Total assets increased 37.7 percent
to $2.675 billion at December 31, 2018, compared to $1.943 billion
a year earlier.
- Net loans receivable increased 38.6
percent to $2.278 billion at December 31, 2018, compared to $1.644
billion a year earlier.
- Allowance for loan loss as a
percentage of non-accrual loans was 309.6 percent, as compared to
133.3 percent at December 31, 2017.
- Issued $33.5 million of
subordinated debt in July 2018 to support our growth and strengthen
our capital position. For regulatory purposes, treated as Tier 1
capital for the Bank and Tier 2 capital for the Company.
- Tangible book value was $11.00 at
December 31, 2018.
- Earlier this month, the Company’s
Board of Directors declared a regular quarterly cash dividend of
$0.14 per share. The dividend will be payable February 22, 2019, to
common shareholders of record on February 8, 2019.
Balance Sheet Review
Total assets increased by $731.9 million, or
37.7 percent, to $2.675 billion at December 31, 2018 from $1.943
billion at December 31, 2017. The increase in total assets included
the acquisition of IAB, which added approximately $215.8 million in
assets.
Loans receivable, net increased by $634.8
million, or 38.6 percent, to $2.278 billion at December 31, 2018
from $1.644 billion at December 31, 2017. The increase in loans
over the prior year resulted from the acquisition of IAB, which
added $182.5 million in loans as of the merger date, as well as
strong organic growth. Total increases for 2018, including
loans acquired from IAB, included $437.1 million in commercial real
estate and multi-family loans, $94.4 million in commercial business
loans, $57.3 million in construction loans, $26.3 million in
residential one-to-four family loans, and $25.2 million in home
equity loans. The allowance for loan losses increased $5.0 million
to $22.4 million, or 309.6 percent of non-accruing loans and 0.97
percent of gross loans, at December 31, 2018 as compared to an
allowance for loan losses of $17.4 million, or 133.3 percent of
non-accruing loans and 1.05 percent of gross loans, a year ago.
Total cash and cash equivalents increased by
$71.0 million, or 57.2 percent, to $195.3 million at December 31,
2018 from $124.3 million at December 31, 2017 primarily due to the
Company’s strategy to further strengthen liquidity and its deposit
base. Total investment securities increased by $4.4 million,
or 3.6 percent, to $127.0 million at December 31, 2018 from $122.6
million at December 31, 2017, as the Company deployed excess cash
to improve returns on interest-earning assets and liquidity.
Deposit liabilities increased by $611.4 million,
or 39.0 percent, to $2.181 billion at December 31, 2018 from $1.569
billion at December 31, 2017. The increases in deposit liabilities
related to the acquisition of IAB, which approximated $178.4
million in the balance of deposits added as of the merger date, as
well as the continued maturation of the seven branches opened in
2016 as a result of our organic growth initiative. Total increases
for 2018, including deposits acquired from IAB, included $439.2
million in certificates of deposit, including listing service and
brokered deposits, $62.9 million in non-interest bearing deposit
accounts, $73.9 million in money market checking accounts, $33.4
million in NOW deposit accounts, and $1.9 million in savings and
club accounts. Listing service and brokered certificates of
deposit, which were used as additional sources of deposit liquidity
to fund loan growth, totaled $36.9 million and $175.5 million,
respectively, at December 31, 2018.
Debt obligations increased by $93.3 million, or
49.3 percent, to $282.4 million at December 31, 2018 from $189.1
million a year ago. The year-over-year increases are the net result
of the issuance of new FHLB advances and scheduled maturities of
FHLB advances, and the issuance of $33.5 million of subordinated
debentures in a private placement in July 2018. The increase in
FHLB borrowings reflected the use of long-term advances to augment
deposits as the Company’s funding source for originating loans and
investing in investment securities. The weighted average interest
rate of FHLB advances was 2.18 percent at December 31, 2018. The
issuance of subordinated debt was to maintain adequate capital
ratios for further growth.
Stockholders’ equity increased by $23.8 million,
or 13.5 percent, to $200.2 million at December 31, 2018 from $176.4
million a year ago. The increase in stockholders’ equity was
primarily attributable to an increase in additional paid-in capital
of $17.4 million from common stock and preferred stock issued as
part of the acquisition of IAB. Retained earnings increased by $7.2
million to $38.4 million at December 31, 2018 from $31.2 million at
December 31, 2017. Accumulated other comprehensive loss increased
$1.9 million to $5.1 million at December 31, 2018 from $3.2 million
a year ago.
Fourth Quarter Income Statement
Review
Net interest income increased by $4.5 million,
or 27.2 percent, to $21.2 million for the fourth quarter of 2018
from $16.7 million for the fourth quarter of 2017. The increase in
net interest income resulted primarily from an increase in the
average balance of interest-earning assets of $749.0 million, or
40.1 percent, to $2.617 billion for the fourth quarter of 2018 from
$1.868 billion for the fourth quarter a year ago. Net interest
margin was 3.24 percent for the fourth quarter of 2018 compared to
3.56 percent for the fourth quarter a year ago. “The decrease in
the net interest margin was the result of the rising rate
environment, with the increase in the cost of funds outpacing the
return on interest earning assets,” said Coughlin.
Total non-interest income decreased by $356,000,
or 23.5 percent, to $1.2 million for the fourth quarter of 2018
from $1.5 million for the fourth quarter of 2017. The decrease in
total non-interest income was primarily related to the recording of
$380,000 of unrealized losses on equity investments in accordance
with a new accounting standard which became effective at the
beginning of 2018.
Fourth quarter non-interest expense increased by
$1.9 million, or 15.4 percent, to $13.9 million for the fourth
quarter of 2018 from $12.0 million for the fourth quarter of 2017.
The increases in non-interest expense over the prior year are
largely attributable to the inclusion of IAB costs since the merger
in April 2018.
The income tax provision decreased by $2.1
million, or 46.1 percent, to $2.4 million for the third quarter of
2018 from $4.5 million for the fourth quarter of 2017. The
decrease in the income tax provision comes as a result of the lower
tax provision as mandated by enactment of the Tax Cuts and Jobs Act
of 2017, which lowered the federal corporate tax rate from 35% to
21% beginning in 2018. There was an additional provision of $2.2
million in the fourth quarter of 2017 to revalue the net deferred
tax assets at the newly enacted tax rate. Partly offsetting the
decrease from the prior year was higher taxable income for the
fourth quarter of 2018 as compared to the fourth quarter of
2017. The consolidated effective tax rate for the fourth
quarter of 2018 was 31.5 percent compared to 76.9 percent for the
fourth quarter of 2017.
Full Year 2018 Income Statement
Review
Net interest income increased by $15.8 million,
or 25.5 percent, to $77.7 million for the full year 2018 from $61.9
million for 2017. The increase in net interest income resulted
primarily from an increase in the average balance of
interest-earning assets of $572.1 million, or 32.3 percent, to
$2.345 billion for 2018 from $1.773 billion for 2017. There was an
increase in the average yield on interest-earning assets of eleven
basis points to 4.48 percent for 2018 from 4.37 percent in
2017.
Net interest margin was 3.31 percent in 2018
compared to 3.49 percent in 2017. The decrease in the net interest
margin was the result of the rising interest rate environment, with
the increase in the cost of funds outpacing the return on interest
earning assets for the short term.
Interest income on loans receivable increased by
$24.5 million, or 33.4 percent, to $97.8 million for the year 2018
from $74.3 million in 2017. The increase was primarily attributable
to an increase in the average balance of loans receivable of $468.8
million, or 29.5 percent, to $2.060 billion for the year 2018 from
$1.591 billion for 2017, as well as an increase in the average
yield on loans of 14 basis points to 4.75 percent for 2018 from
4.61 percent for 2017. Interest income on loans also included $1.7
million of accretion of purchase credit adjustments related to the
acquisition of IAB for 2018, which added approximately 7 basis
points to the average yield on interest earning assets.
Total interest expense increased by $11.7
million, or 74.8 percent, to $27.4 million for 2018 from $15.7
million for 2017. This increase resulted primarily from an increase
in the average balance of interest-bearing liabilities of $474.4
million, or 32.0 percent, to $1.958 billion for the year 2018 from
$1.484 billion for 2017, as well as an increase in the average rate
on interest-bearing liabilities of 34 basis points to 1.40 percent
for the year 2018 from 1.06 percent for 2017. Interest expense also
included $471,000 of amortization of purchase credit fair value
adjustments related to the acquisition of IAB for the year 2018,
which added approximately two basis points to the average cost of
funds on an annualized basis. Interest expense, related to
the issuance of subordinated debt in July 2018, totaled $917,000
for the year 2018, which added approximately five basis points to
the average cost of funds.
Total non-interest income increased by $477,000,
or 6.4 percent, to $8.0 million for the year 2018 from $7.5 million
for 2017. The increase in total non-interest income was primarily
related to an increase in other non-interest income of $2.1 million
to $2.5 million for the year from $343,000 in 2017, which was
primarily attributed to $2.0 million received from a legal
settlement in the first quarter of 2018. The increase in total
non-interest income was partly offset by a decrease in the gains on
sale of OREO properties of $1.6 million, which primarily related to
the gain on the sale of one property in 2017, and a loss on equity
securities of $622,000 in accordance with a new accounting standard
which became effective at the beginning of 2018.
Total non-interest expense increased by $9.2
million, or 19.6 percent, to $56.3 million for the year 2018 from
$47.1 million in 2017. Merger-related costs increased by $1.6
million, to $2.4 million for the year, from $802,000 in 2017. The
increases in non-interest expense over the prior year were largely
attributable to the inclusion of IAB expenses since the merger in
April 2018.
The income tax provision decreased by $2.7 million, or 26.9
percent, to $7.5 million for the year 2018 from $10.2 million in
2017. The decrease in the income tax provision comes as a result of
the lower tax provision as mandated by enactment of the Tax Cuts
and Jobs Act of 2017, which lowered the federal corporate tax rate
from 35% to 21% beginning in 2018. There was an additional
provision of $2.2 million in the fourth quarter of 2017 to revalue
the net deferred tax assets at the newly enacted tax rate. Partly
offsetting the decrease from the prior year was higher taxable
income for 2018 as compared to 2017. The consolidated effective tax
rate for the year 2018 was 30.9 percent compared to 50.6 percent in
2017.
Asset Quality
The fourth quarter provision for loan losses was
$821,000, compared to $907,000 in the preceding quarter and
$325,000 in the fourth quarter a year ago. For the year, the
provision for loan losses increased by $3.0 million, to $5.1
million compared to $2.1 million in 2017.
Non-accruing loans improved to $7.2 million, or
0.31 percent of gross loans at December 31, 2018, compared to $11.1
million, or 0.49 percent of gross loans at September 30, 2018, and
$13.0 million, or 0.78 percent of gross loans, a year earlier.
Non-accruing loans exclude $7.0 million of Purchased
Credit-Impaired loans acquired through the merger with IAB.
Performing troubled debt restructured loans that
were not included in nonaccrual loans at December 31, 2018, were
$22.5 million, compared to $20.6 million at September 30, 2018 and
$20.1 million at December 31, 2017. Borrowers who are in financial
difficulty and who have been granted concessions that may include
interest rate reductions, term extensions, or payment alterations
are categorized as restructured loans.
The allowance for loan losses was $22.4 million,
or 0.97 percent of gross loans at December 31, 2018, compared to
$21.5 million, or 0.96 percent of gross loans at September 30,
2018, and $17.4 million, or 1.05 percent of gross loans a year
ago. The decline in allowance coverage was primarily driven
by the addition of IAB acquired loans with no allowance for loan
losses as these loans were recorded at fair value at the
acquisition date. The Company’s outstanding credit mark recorded on
acquired portfolios of $249.5 million totaled $6.6 million at
December 31, 2018. The Company’s combined coverage of allowance for
loan loss and credit mark on the acquired portfolios totaled $28.9
million, or 1.25% of the overall loan portfolio, at December 31,
2018.
As of December 31, 2018, the allowance for loan
losses represented 309.6 percent of nonaccrual loans compared to
193.9 percent three months earlier, and 133.3 percent one year
earlier. Other real estate owned (OREO) totaled $1.3 million
at December 31, 2018, compared to $1.2 million at September 30,
2018, and $532,000 at December 31, 2017. Net charge-offs were
$146,000 in 2018, compared to $1.9 million in 2017.
About BCB Bancorp, Inc.
Established in 2000 and headquartered in
Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of
BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has 28 branch offices in
Bayonne, Carteret, Colonia, Edison, Hoboken, Fairfield, Holmdel,
Jersey City, Lodi, Lyndhurst, Maplewood, Monroe Township,
Parsippany, Plainsboro, Rutherford, South Orange, Union, and
Woodbridge, New Jersey and three branches in Hicksville and Staten
Island, New York. The Bank provides business and individuals
a wide range of loans, deposit products, and retail and commercial
banking services. For more information, please go to
www.bcb.bank.
Forward-Looking Statements
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.
In addition to factors previously disclosed in
the Company’s reports filed with the U.S. Securities and Exchange
Commission (the "SEC") and those identified elsewhere in this
document, the following factors, among others, could cause actual
results to differ materially from forward-looking statements or
historical performance: difficulties and delays in integrating the
Indus-American Bank business or fully realizing cost savings and
other benefits of the Merger; business disruption following the
Merger; changes in asset quality and credit risk; the inability to
sustain revenue and earnings growth; changes in interest rates and
capital markets; inflation; customer acceptance of BCB products and
services; customer borrowing, repayment, investment and deposit
practices; customer disintermediation; the introduction,
withdrawal, success and timing of business initiatives; competitive
conditions; the inability to realize cost savings or revenues or to
implement integration plans and other consequences associated with
mergers, acquisitions and divestitures; economic conditions; and
the impact, extent and timing of technological changes, capital
management activities, and actions of governmental agencies and
legislative and regulatory actions and reforms.
Annualized, pro forma, projected and estimated
numbers are used for illustrative purpose only, are not forecasts
and may not reflect actual results.
|
BCB BANCORP INC. AND SUBSIDIARIES |
Consolidated Statements of Financial Condition |
(In Thousands, Except Share and Per Share Data,
Unaudited) |
|
|
|
|
|
|
|
|
|
December 31,2018 |
|
September 30,2018 |
|
|
December 31,2017 |
|
December 31, 2018 vsSeptember 30, 2018 |
|
December 31, 2018 vsDecember 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and amounts due
from depository institutions |
$ |
18,970 |
|
|
$ |
32,459 |
|
|
$ |
16,460 |
|
|
(41.6 |
%) |
|
15.2 |
% |
Interest-earning
deposits |
|
176,294 |
|
|
|
174,251 |
|
|
|
107,775 |
|
|
1.2 |
% |
|
63.6 |
% |
Total
cash and cash equivalents |
|
195,264 |
|
|
|
206,710 |
|
|
|
124,235 |
|
|
(5.5 |
%) |
|
57.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning time
deposits |
|
735 |
|
|
|
980 |
|
|
|
980 |
|
|
(25.0 |
%) |
|
(25.0 |
%) |
Securities available
for sale |
|
119,335 |
|
|
|
119,811 |
|
|
|
114,295 |
|
|
(0.4 |
%) |
|
4.4 |
% |
Equity investments |
|
7,672 |
|
|
|
8,052 |
|
|
|
8,294 |
|
|
(4.7 |
%) |
|
(7.5 |
%) |
Loans held for
sale |
|
1,153 |
|
|
|
1,772 |
|
|
|
1,295 |
|
|
(34.9 |
%) |
|
(11.0 |
%) |
Loans receivable, net
of allowance for loan losses of |
|
|
|
|
|
|
|
|
|
|
$22,359,
$21,504, and $17,375, respectively |
|
2,278,492 |
|
|
|
2,225,001 |
|
|
|
1,643,677 |
|
|
2.4 |
% |
|
38.6 |
% |
Federal Home Loan Bank
of New York stock, at cost |
|
13,405 |
|
|
|
14,755 |
|
|
|
10,211 |
|
|
(9.1 |
%) |
|
31.3 |
% |
Premises and equipment,
net |
|
20,293 |
|
|
|
20,392 |
|
|
|
18,768 |
|
|
(0.5 |
%) |
|
8.1 |
% |
Accrued interest
receivable |
|
8,378 |
|
|
|
8,635 |
|
|
|
6,153 |
|
|
(3.0 |
%) |
|
36.2 |
% |
Other real estate
owned |
|
1,333 |
|
|
|
1,232 |
|
|
|
532 |
|
|
8.2 |
% |
|
150.6 |
% |
Deferred income
taxes |
|
13,601 |
|
|
|
11,607 |
|
|
|
5,144 |
|
|
17.2 |
% |
|
164.4 |
% |
Goodwill and other
intangible assets |
|
5,699 |
|
|
|
5,714 |
|
|
|
- |
|
|
- |
|
|
- |
|
Other assets |
|
9,371 |
|
|
|
13,207 |
|
|
|
9,253 |
|
|
(37.6 |
%) |
|
5.0 |
% |
Total Assets |
$ |
2,674,731 |
|
|
$ |
2,637,868 |
|
|
$ |
1,942,837 |
|
|
1.4 |
% |
|
37.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits |
$ |
263,960 |
|
|
$ |
276,998 |
|
|
$ |
201,043 |
|
|
(4.7 |
%) |
|
31.3 |
% |
Interest bearing
deposits |
|
1,916,764 |
|
|
|
1,839,626 |
|
|
|
1,368,327 |
|
|
4.2 |
% |
|
40.1 |
% |
Total deposits |
|
2,180,724 |
|
|
|
2,116,624 |
|
|
|
1,569,370 |
|
|
3.0 |
% |
|
39.0 |
% |
FHLB Advances |
|
245,800 |
|
|
|
275,800 |
|
|
|
185,000 |
|
|
(10.9 |
%) |
|
32.9 |
% |
Subordinated
debentures |
|
36,577 |
|
|
|
36,519 |
|
|
|
4,124 |
|
|
0.2 |
% |
|
786.9 |
% |
Other liabilities |
|
11,415 |
|
|
|
13,162 |
|
|
|
7,889 |
|
|
(13.3 |
%) |
|
44.7 |
% |
Total Liabilities |
|
2,474,516 |
|
|
|
2,442,105 |
|
|
|
1,766,383 |
|
|
1.3 |
% |
|
40.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
Preferred stock: $0.01
par value, 10,000,000 shares authorized |
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
Additional paid-in
capital preferred stock |
|
19,706 |
|
|
|
19,706 |
|
|
|
13,241 |
|
|
- |
|
|
48.8 |
% |
Common stock; no par
value; 20,000,000 shares authorized |
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
Additional paid-in
capital common stock |
|
176,259 |
|
|
|
175,970 |
|
|
|
164,230 |
|
|
0.2 |
% |
|
7.3 |
% |
Retained earnings |
|
38,442 |
|
|
|
35,693 |
|
|
|
31,241 |
|
|
7.7 |
% |
|
23.0 |
% |
Accumulated other
comprehensive (loss) |
|
(5,076 |
) |
|
|
(6,490 |
) |
|
|
(3,142 |
) |
|
(21.8 |
%) |
|
61.6 |
% |
Treasury stock, at
cost |
|
(29,116 |
) |
|
|
(29,116 |
) |
|
|
(29,116 |
) |
|
- |
|
|
- |
|
Total Stockholders' Equity |
|
200,215 |
|
|
|
195,763 |
|
|
|
176,454 |
|
|
2.3 |
% |
|
13.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
$ |
2,674,731 |
|
|
$ |
2,637,868 |
|
|
$ |
1,942,837 |
|
|
1.4 |
% |
|
37.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding
common shares |
|
15,889 |
|
|
|
15,782 |
|
|
|
15,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCB BANCORP INC. AND SUBSIDIARIES |
Consolidated Statements of Income |
(In Thousands, Except for Per Share Amounts,
Unaudited) |
|
|
|
|
|
|
|
|
|
Year EndedDecember 31,2018 |
|
|
Year EndedDecember 31,2017 |
|
2018 vs. 2017 |
Interest and
dividend income: |
|
|
|
|
|
|
|
|
Loans, including
fees |
$ |
97,831 |
|
|
$ |
73,355 |
|
33.4 |
% |
Mortgage-backed securities |
|
3,154 |
|
|
|
2,360 |
|
33.6 |
% |
Municipal bonds and other debt |
|
607 |
|
|
|
544 |
|
11.6 |
% |
FHLB stock dividends and other interest earning assets |
|
3,505 |
|
|
|
1,312 |
|
167.1 |
% |
Total interest and dividend income |
|
105,097 |
|
|
|
77,571 |
|
35.5 |
% |
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
Demand |
|
4,314 |
|
|
|
2,816 |
|
53.2 |
% |
Savings and club |
|
444 |
|
|
|
397 |
|
11.8 |
% |
Certificates of deposit |
|
16,400 |
|
|
|
8,838 |
|
85.6 |
% |
|
|
21,158 |
|
|
|
12,051 |
|
75.6 |
% |
Borrowings |
|
6,258 |
|
|
|
3,636 |
|
72.1 |
% |
Total interest expense |
|
27,416 |
|
|
|
15,687 |
|
74.8 |
% |
|
|
|
|
|
|
|
|
|
Net interest
income |
|
77,681 |
|
|
|
61,884 |
|
25.5 |
% |
Provision for loan
losses |
|
5,130 |
|
|
|
2,110 |
|
143.1 |
% |
|
|
|
|
|
|
|
|
|
Net interest
income, after provision for loan losses |
|
72,551 |
|
|
|
59,774 |
|
21.4 |
% |
|
|
|
|
|
|
|
|
|
Non-interest
income: |
|
|
|
|
|
|
|
|
Fees and service charges |
|
3,785 |
|
|
|
3,101 |
|
22.1 |
% |
Gain on sales of loans |
|
2,333 |
|
|
|
2,357 |
|
(1.0 |
%) |
Loss on bulk sale of impaired loans held in portfolio |
|
(24 |
) |
|
|
- |
|
- |
|
Gain on sales of other real estate owned |
|
30 |
|
|
|
1,585 |
|
(98.1 |
%) |
Gain on sale of investment securities |
|
- |
|
|
|
97 |
|
- |
|
Unrealized loss on equity investments |
|
(622 |
) |
|
|
- |
|
- |
|
Other |
|
2,458 |
|
|
|
343 |
|
616.6 |
% |
Total non-interest income |
|
7,960 |
|
|
|
7,483 |
|
6.4 |
% |
|
|
|
|
|
|
|
|
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
27,590 |
|
|
|
23,706 |
|
16.4 |
% |
Occupancy and equipment |
|
9,579 |
|
|
|
8,274 |
|
15.8 |
% |
Data processing service fees |
|
3,375 |
|
|
|
2,747 |
|
22.9 |
% |
Professional fees |
|
1,937 |
|
|
|
2,834 |
|
(31.7 |
%) |
Director fees |
|
752 |
|
|
|
691 |
|
8.8 |
% |
Regulatory assessments |
|
1,435 |
|
|
|
1,127 |
|
27.3 |
% |
Advertising and promotional |
|
422 |
|
|
|
433 |
|
(2.5 |
%) |
Other real estate owned, net |
|
272 |
|
|
|
146 |
|
86.3 |
% |
Merger related expenses |
|
2,408 |
|
|
|
802 |
|
200.2 |
% |
Other |
|
8,496 |
|
|
|
6,284 |
|
35.2 |
% |
Total non-interest expense |
|
56,266 |
|
|
|
47,044 |
|
19.6 |
% |
|
|
|
|
|
|
|
|
|
Income before
income tax provision |
|
24,245 |
|
|
|
20,213 |
|
19.9 |
% |
Income tax
provision |
|
7,482 |
|
|
|
10,231 |
|
(26.9 |
%) |
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
16,763 |
|
|
$ |
9,982 |
|
67.9 |
% |
Preferred stock
dividends |
|
953 |
|
|
|
614 |
|
55.2 |
% |
Net Income
available to common stockholders |
$ |
15,810 |
|
|
$ |
9,368 |
|
68.8 |
% |
|
|
|
|
|
|
|
|
|
Net Income per
common share-basic and diluted |
|
|
|
|
|
|
|
|
Basic |
$ |
1.02 |
|
|
$ |
0.76 |
|
34.2 |
% |
Diluted |
$ |
1.01 |
|
|
$ |
0.75 |
|
34.7 |
% |
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
15,567 |
|
|
|
12,403 |
|
25.5 |
% |
Diluted |
|
15,661 |
|
|
|
12,508 |
|
25.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
BCB BANCORP INC. AND SUBSIDIARIES |
Consolidated Statements of Income |
(In Thousands, Except for Per Share Amounts,
Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended, |
|
|
|
|
December 31,2018 |
|
|
September 30,2018 |
|
|
December 31,2017 |
December 31, 2018vs September
30,2018 |
December 31, 2018vs December
31,2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
dividend income: |
|
|
|
|
|
|
|
|
|
|
Loans, including
fees |
$ |
28,243 |
|
|
$ |
26,019 |
|
|
$ |
19,388 |
8.5 |
% |
45.7 |
% |
Mortgage-backed securities |
|
791 |
|
|
|
827 |
|
|
|
648 |
(4.4 |
%) |
22.1 |
% |
Municipal
bonds and other debt |
|
191 |
|
|
|
116 |
|
|
|
167 |
64.7 |
% |
14.4 |
% |
FHLB
stock dividends and other interest earning assets |
|
1,263 |
|
|
|
1,009 |
|
|
|
438 |
25.2 |
% |
188.4 |
% |
Total interest and dividend income |
|
30,488 |
|
|
|
27,971 |
|
|
|
20,641 |
9.0 |
% |
47.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Demand |
|
1,412 |
|
|
|
1,130 |
|
|
|
766 |
25.0 |
% |
84.3 |
% |
Savings
and club |
|
126 |
|
|
|
116 |
|
|
|
98 |
8.6 |
% |
28.6 |
% |
Certificates of deposit |
|
5,674 |
|
|
|
4,591 |
|
|
|
2,401 |
23.6 |
% |
136.3 |
% |
|
|
7,212 |
|
|
|
5,837 |
|
|
|
3,265 |
23.6 |
% |
120.9 |
% |
Borrowings |
|
2,105 |
|
|
|
2,054 |
|
|
|
734 |
2.5 |
% |
186.8 |
% |
Total interest expense |
|
9,317 |
|
|
|
7,891 |
|
|
|
3,999 |
18.1 |
% |
133.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
21,171 |
|
|
|
20,080 |
|
|
|
16,642 |
5.4 |
% |
27.2 |
% |
Provision for loan
losses |
|
821 |
|
|
|
907 |
|
|
|
325 |
(9.5 |
%) |
152.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income, after provision for loan losses |
|
20,350 |
|
|
|
19,173 |
|
|
|
16,317 |
6.1 |
% |
24.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
Fees and
service charges |
|
1,012 |
|
|
|
1,092 |
|
|
|
718 |
(7.3 |
%) |
40.9 |
% |
Gain on
sales of loans |
|
436 |
|
|
|
738 |
|
|
|
746 |
(40.9 |
%) |
(41.6 |
%) |
Gain on
sales of other real estate owned |
|
26 |
|
|
|
14 |
|
|
|
15 |
85.7 |
% |
73.3 |
% |
Unrealized loss on equity investments |
|
(380 |
) |
|
|
(82 |
) |
|
|
- |
(363.4 |
%) |
- |
|
Other |
|
65 |
|
|
|
90 |
|
|
|
36 |
(27.8 |
%) |
80.6 |
% |
Total non-interest income |
|
1,159 |
|
|
|
1,852 |
|
|
|
1,515 |
(37.4 |
%) |
(23.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
7,042 |
|
|
|
7,156 |
|
|
|
5,813 |
(1.6 |
%) |
21.1 |
% |
Occupancy
and equipment |
|
2,551 |
|
|
|
2,490 |
|
|
|
2,089 |
2.4 |
% |
22.1 |
% |
Data
processing service fees |
|
876 |
|
|
|
942 |
|
|
|
713 |
(7.0 |
%) |
22.9 |
% |
Professional fees |
|
462 |
|
|
|
437 |
|
|
|
597 |
5.7 |
% |
(22.6 |
%) |
Director
fees |
|
158 |
|
|
|
192 |
|
|
|
115 |
(17.7 |
%) |
37.4 |
% |
Regulatory assessments |
|
487 |
|
|
|
419 |
|
|
|
117 |
16.2 |
% |
316.2 |
% |
Advertising and promotional |
|
108 |
|
|
|
129 |
|
|
|
58 |
(16.3 |
%) |
86.2 |
% |
Other
real estate owned, net |
|
59 |
|
|
|
22 |
|
|
|
81 |
168.2 |
% |
(28.0 |
%) |
Merger
related expenses |
|
105 |
|
|
|
119 |
|
|
|
802 |
(11.8 |
%) |
(86.9 |
%) |
Other |
|
2,036 |
|
|
|
2,485 |
|
|
|
1,649 |
(18.1 |
%) |
23.5 |
% |
Total non-interest expense |
|
13,884 |
|
|
|
14,391 |
|
|
|
12,035 |
(3.5 |
%) |
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
Income before
income tax provision |
|
7,625 |
|
|
|
6,634 |
|
|
|
5,797 |
14.9 |
% |
31.5 |
% |
Income tax
provision |
|
2,401 |
|
|
|
2,040 |
|
|
|
4,458 |
17.7 |
% |
(46.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
5,224 |
|
|
$ |
4,594 |
|
|
$ |
1,339 |
13.7 |
% |
290.1 |
% |
Preferred stock
dividends |
|
262 |
|
|
|
263 |
|
|
|
165 |
(0.4 |
%) |
58.8 |
% |
Net Income
available to common stockholders |
$ |
4,962 |
|
|
$ |
4,331 |
|
|
$ |
1,174 |
14.6 |
% |
322.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Income per
common share-basic and diluted |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.31 |
|
|
$ |
0.27 |
|
|
$ |
0.08 |
14.8 |
% |
287.5 |
% |
Diluted |
$ |
0.31 |
|
|
$ |
0.27 |
|
|
$ |
0.08 |
14.8 |
% |
287.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding |
|
|
|
|
|
|
|
|
|
|
Basic |
|
15,820 |
|
|
|
15,789 |
|
|
|
15,037 |
0.2 |
% |
5.2 |
% |
Diluted |
|
15,851 |
|
|
|
15,896 |
|
|
|
15,168 |
(0.3 |
%) |
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCB BANCORP INC. AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest MarginTwelve
Months Ended December 31, |
|
|
2018 |
|
|
2017 |
|
|
AverageBalance |
|
InterestEarned/Paid |
AverageYield/Rate |
|
|
AverageBalance |
|
InterestEarned/Paid |
AverageYield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable |
$ |
2,060,187 |
$ |
97,831 |
4.75 |
% |
|
$ |
1,591,339 |
$ |
73,335 |
4.61 |
% |
Investment
Securities |
|
142,343 |
|
3,761 |
2.64 |
% |
|
|
104,520 |
|
2,904 |
2.78 |
% |
Interest-earning
deposits |
|
142,867 |
|
3,505 |
2.45 |
% |
|
|
77,399 |
|
1,312 |
1.70 |
% |
Total
Interest-earning assets |
|
2,345,397 |
|
105,097 |
4.48 |
% |
|
|
1,773,258 |
|
77,571 |
4.37 |
% |
Non-interest-earning
assets |
|
55,404 |
|
|
|
|
|
54,509 |
|
|
|
Total
assets |
$ |
2,400,801 |
|
|
|
|
$ |
1,827,767 |
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
accounts |
$ |
334,156 |
$ |
2,036 |
0.61 |
% |
|
$ |
305,208 |
$ |
1,666 |
0.55 |
% |
Money market
accounts |
|
118,109 |
|
2,278 |
1.21 |
% |
|
|
135,202 |
|
1,150 |
0.85 |
% |
Savings accounts |
|
262,745 |
|
444 |
0.17 |
% |
|
|
263,500 |
|
397 |
0.15 |
% |
Certificates of
Deposit |
|
911,141 |
|
16,400 |
1.80 |
% |
|
|
619,377 |
|
8,838 |
1.43 |
% |
Total
interest-bearing deposits |
|
1,696,151 |
|
21,158 |
1.25 |
% |
|
|
1,323,287 |
|
12,051 |
0.91 |
% |
Borrowed funds |
|
262,227 |
|
6,258 |
2.39 |
% |
|
|
160,699 |
|
3,636 |
2.26 |
% |
Total
interest-bearing liabilities |
|
1,958,378 |
|
27,416 |
1.40 |
% |
|
|
1,483,985 |
|
15,687 |
1.06 |
% |
Non-interest-bearing
liabilities |
|
253,301 |
|
|
|
|
|
201,651 |
|
|
|
Total
liabilities |
|
2,211,679 |
|
|
|
|
|
1,685,636 |
|
|
|
Stockholders'
equity |
|
189,122 |
|
|
|
|
|
142,131 |
|
|
|
Total
liabilities and stockholders' equity |
$ |
2,400,801 |
|
|
|
|
$ |
1,827,767 |
|
|
|
Net interest
income |
|
|
$ |
77,681 |
|
|
|
|
$ |
61,884 |
|
Net interest rate
spread |
|
|
|
|
3.08 |
% |
|
|
|
|
|
3.32 |
% |
Net interest
margin |
|
|
|
|
3.31 |
% |
|
|
|
|
|
3.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
BCB BANCORP INC. AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest MarginThree
Months Ended December 31, |
|
|
2018 |
|
|
2017 |
|
|
AverageBalance |
|
InterestEarned/Paid |
AverageYield/Rate |
|
|
AverageBalance |
|
InterestEarned/Paid |
AverageYield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable |
$ |
2,228,372 |
$ |
28,243 |
4.94 |
% |
|
$ |
1,655,570 |
$ |
19,388 |
4.68 |
% |
Investment
Securities |
|
141,248 |
|
982 |
2.78 |
% |
|
|
112,357 |
|
815 |
2.90 |
% |
Interest-earning
deposits |
|
187,051 |
|
1,263 |
2.70 |
% |
|
|
99,785 |
|
438 |
1.76 |
% |
Total
Interest-earning assets |
|
2,616,672 |
|
30,488 |
4.66 |
% |
|
|
1,867,713 |
|
20,641 |
4.42 |
% |
Non-interest-earning
assets |
|
61,033 |
|
|
|
|
|
48,999 |
|
|
|
Total
assets |
$ |
2,677,705 |
|
|
|
|
$ |
1,916,712 |
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
accounts |
$ |
349,730 |
$ |
634 |
0.73 |
% |
|
$ |
312,901 |
$ |
431 |
0.55 |
% |
Money market
accounts |
|
214,278 |
|
778 |
1.45 |
% |
|
|
143,690 |
|
335 |
0.94 |
% |
Savings accounts |
|
261,526 |
|
126 |
0.19 |
% |
|
|
259,156 |
|
98 |
0.15 |
% |
Certificates of
Deposit |
|
1,063,045 |
|
5,674 |
2.13 |
% |
|
|
651,334 |
|
2,401 |
1.47 |
% |
Total
interest-bearing deposits |
|
1,888,580 |
|
7,212 |
1.53 |
% |
|
|
1,367,080 |
|
3,265 |
0.96 |
% |
Borrowed funds |
|
311,663 |
|
2,105 |
2.70 |
% |
|
|
163,733 |
|
734 |
1.79 |
% |
Total
interest-bearing liabilities |
|
2,220,243 |
|
9,317 |
1.69 |
% |
|
|
1,530,813 |
|
3,999 |
1.04 |
% |
Non-interest-bearing
liabilities |
|
281,400 |
|
|
|
|
|
208,245 |
|
|
|
Total
liabilities |
|
2,481,643 |
|
|
|
|
|
1,739,058 |
|
|
|
Stockholders'
equity |
|
196,062 |
|
|
|
|
|
177,655 |
|
|
|
Total
liabilities and stockholders' equity |
$ |
2,677,705 |
|
|
|
|
$ |
1,916,712 |
|
|
|
Net interest
income |
|
|
$ |
21,171 |
|
|
|
|
$ |
16,642 |
|
Net interest rate
spread |
|
|
|
|
2.97 |
% |
|
|
|
|
|
3.38 |
% |
Net interest
margin |
|
|
|
|
3.24 |
% |
|
|
|
|
|
3.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
BCB BANCORP INC. AND SUBSIDIARIES |
|
|
|
Financial condition data by
quarter |
|
Q4 2018 |
Q3 2018 |
Q2 2018 |
Q1 2018 |
Q4 2017 |
Q3 2017 |
|
|
|
|
|
|
|
|
(In thousands, except tangible book value) |
Total assets |
$ |
2,674,731 |
|
$ |
2,637,868 |
|
$ |
2,516,564 |
|
$ |
2,082,313 |
|
$ |
1,942,837 |
|
$ |
1,871,740 |
|
Cash and cash
equivalents |
|
195,264 |
|
|
206,710 |
|
|
180,445 |
|
|
137,334 |
|
|
124,235 |
|
|
97,618 |
|
Securities available
for sale |
|
127,007 |
|
|
127,863 |
|
|
135,425 |
|
|
127,324 |
|
|
122,589 |
|
|
100,077 |
|
Loans receivable,
net |
|
2,278,492 |
|
|
2,225,001 |
|
|
2,119,829 |
|
|
1,764,597 |
|
|
1,643,677 |
|
|
1,619,245 |
|
Deposits |
|
2,180,724 |
|
|
2,116,624 |
|
|
1,984,876 |
|
|
1,691,353 |
|
|
1,569,370 |
|
|
1,546,148 |
|
Borrowings |
|
282,377 |
|
|
312,319 |
|
|
324,124 |
|
|
204,124 |
|
|
189,124 |
|
|
142,124 |
|
Stockholders’
equity |
|
200,215 |
|
|
195,763 |
|
|
194,076 |
|
|
177,386 |
|
|
176,454 |
|
|
177,568 |
|
Tangible Book
Value |
|
11.00 |
|
|
10.78 |
|
|
10.68 |
|
|
10.90 |
|
|
10.85 |
|
|
10.93 |
|
|
|
|
|
|
|
|
|
Operating data by quarter |
|
Q4 2018 |
Q3 2018 |
Q2 2018 |
Q1 2018 |
Q4 2017 |
Q3 2017 |
|
|
|
|
|
|
|
|
(In thousands, except for per share amounts) |
Net interest
income |
$ |
21,171 |
|
$ |
20,080 |
|
$ |
19,990 |
|
$ |
16,440 |
|
$ |
16,642 |
|
$ |
15,574 |
|
Provision for loan
losses |
|
821 |
|
|
907 |
|
|
2,060 |
|
|
1,342 |
|
|
325 |
|
|
511 |
|
Non-interest
income |
|
1,159 |
|
|
1,852 |
|
|
1,563 |
|
|
3,386 |
|
|
1,515 |
|
|
1,633 |
|
Non-interest
expense |
|
13,884 |
|
|
14,391 |
|
|
15,980 |
|
|
12,011 |
|
|
12,035 |
|
|
11,299 |
|
Income tax expense |
|
2,401 |
|
|
2,040 |
|
|
1,200 |
|
|
1,841 |
|
|
4,458 |
|
|
2,180 |
|
Net income |
$ |
5,224 |
|
$ |
4,594 |
|
$ |
2,313 |
|
$ |
4,632 |
|
$ |
1,339 |
|
$ |
3,217 |
|
Net income per
share |
$ |
0.31 |
|
$ |
0.27 |
|
$ |
0.13 |
|
$ |
0.30 |
|
$ |
0.08 |
|
$ |
0.25 |
|
Common Dividends
declared per share |
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
Financial Ratios |
|
Q4 2018 |
Q3 2018 |
Q2 2018 |
Q1 2018 |
Q4 2017 |
Q3 2017 |
Return on average
assets |
|
0.78 |
% |
|
0.72 |
% |
|
0.40 |
% |
|
0.92 |
% |
|
0.28 |
% |
|
0.70 |
% |
Return on average
stockholder’s equity |
|
10.66 |
% |
|
9.44 |
% |
|
4.90 |
% |
|
10.48 |
% |
|
3.01 |
% |
|
9.17 |
% |
Net interest
margin |
|
3.24 |
% |
|
3.22 |
% |
|
3.52 |
% |
|
3.34 |
% |
|
3.56 |
% |
|
3.50 |
% |
Stockholder’s equity to
total assets |
|
7.49 |
% |
|
7.42 |
% |
|
7.71 |
% |
|
8.52 |
% |
|
9.08 |
% |
|
9.49 |
% |
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
(In thousands, except for ratio
%) |
|
Q4 2018 |
Q3 2018 |
Q2 2018 |
Q1 2018 |
Q4 2017 |
Q3 2017 |
Non-Accrual Loans |
$ |
7,221 |
|
$ |
11,093 |
|
$ |
10,763 |
|
$ |
10,619 |
|
$ |
13,036 |
|
$ |
16,958 |
|
Non-Accrual Loans as a
% of Total Loans |
|
0.31 |
% |
|
0.49 |
% |
|
0.50 |
% |
|
0.60 |
% |
|
0.78 |
% |
|
1.03 |
% |
ALLL as % of
Non-Accrual Loans |
|
309.64 |
% |
|
193.85 |
% |
|
191.79 |
% |
|
172.68 |
% |
|
133.28 |
% |
|
108.79 |
% |
Impaired Loans |
|
42,408 |
|
|
47,251 |
|
|
50,899 |
|
|
36,199 |
|
|
37,786 |
|
|
40,992 |
|
Classified Loans |
|
26,161 |
|
|
30,179 |
|
|
33,605 |
|
|
20,299 |
|
|
21,730 |
|
|
26,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Thomas Coughlin, President & CEOThomas
Keating, CFO(201) 823-0700
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