BCB Bancorp, Inc., Announces Record Quarterly Earnings
BAYONNE, N.J. - April 19, 2005 - BCB Bancorp, Inc., Bayonne, NJ (OTCBB: BCBP)
announced an increase in unaudited net earnings of $445,000 or 63.6% to
$1,145,000 for the quarter ended March 31, 2005 compared to $700,000 for the
quarter ended March 31, 2004. Basic and diluted earnings per share were $0.38
and $0.37 respectively for the three months ended March 31, 2005 as compared to
$0.24 and $0.23 per share for the three months ended March 31, 2004. The
weighted average number of common shares outstanding for the three months ended
March 31, 2005 for basic and diluted earnings per share calculation purposes was
2,994,000 and 3,137,000 respectively. The weighted average number of common
shares outstanding for the three months ended March 31, 2004 for basic and
diluted earnings per share calculation purposes was 2,900,000 and 3,110,000
respectively.
As of March 31, 2005 total assets increased by $12.5 million or 3.3% to $390.8
million from $378.3 million at December 31, 2004. Loans receivable increased by
$15.3 million or 6.2% to $261.7 million at March 31, 2005 from $246.4 million at
December 31, 2004. Securities held-to-maturity decreased by $3.1 million or 2.6%
to $113.9 million at March 31, 2005 from $117.0 million at December 31, 2004.
Deposits increased by $7.7 million or 2.3% to $344.9 million from $337.2 million
at December 31, 2004. Borrowed money increased by $3.4 million or 24.1% to $17.5
million at March 31, 2005 from $14.1 million at December 31, 2004. Total
stockholders' equity increased by $1,145,000 or 4.4% to $27.2 million at March
31, 2005 from $26.0 million at December 31, 2004.
Net income increased by $445,000 or 63.6% to $1,145,000 for the three months
ended March 31, 2005 from $700,000 for the three months ended March 31, 2004.
This improvement in operations reflects increases in net interest income and
non-interest income, partially offset by increases in the provision for loan
losses, non-interest expense and income taxes. Net interest income increased by
$651,000 or 20.9% to $3.77 million for the three months ended March 31, 2005
from $3.12 million for the three months ended March 31, 2004. This increase
resulted primarily from an increase in average interest earning assets of $62.9
million or 20.4%% to $370.8 million at March 31, 2005 from $307.9 million at
March 31, 2004, funded primarily through the growth in average interest bearing
liabilities of $55.0 million or 19.9% to $330.9 million for the three months
ended March 31, 2005 from $275.9 million for the three months ended March 31,
2004, partially offset by a marginal decrease in the net interest margin to
4.06% for the three months ended March 31, 2005 from 4.07% for the three months
ended March 31, 2004. For the three months ended March 31, 2005, return on
average assets, annualized was 1.20%, return on average stockholders equity,
annualized was 17.21%, the Bank's efficiency ratio was 48.2% and the Bank
originated $34.7 million of loans.
Donald Mindiak President & CEO commented that, "the consistent growth of our
loan portfolio with conservatively underwritten, quality loan product has been
the driving force behind our improving net interest income. By diligently
monitoring operating expenses, profitability ratios and operational efficiencies
have improved leading to results consistent with peer institutions many years
our senior. The formation of our investment subsidiary for tax planning
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purposes, operational since the beginning of the year, has been effective in
reducing the Company's overall tax liability and the successful inception and
execution of the Company's Retail Mortgage Division should provide additional
non-interest income as this division begins operations in earnest. Competing for
retail deposits in an increasing short-term interest rate environment remains
challenging, however through strategic and systematic revisions, deposit growth
remains a primary source for funding loan portfolio growth. It is these
attributes along with the support and dedication of our shareholders and staff
which assist us in our commitment to continue to build franchise and shareholder
value."
Bayonne Community Bank presently operates three offices located in Bayonne, New
Jersey.
This discussion, and other written material, and statements management may make,
may contain certain forward-looking statements regarding the Company's
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. The Company intends 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 is
including this statement for purposes of said safe harbor provisions.
Forward-looking information is inherently subject to risks and uncertainties,
and actual results could differ materially from those currently anticipated due
to a number of factors, which include, but are not limited to, factors discussed
in the Bank's Annual Report on Form 10-K and in other documents filed by the
Bank with the FDIC or the Securities and Exchange Commission from time to time.
Forward-looking statements, which are based on certain assumptions and describe
future plans, strategies and expectations of the Company, are generally
identified by the use of the words "plan," "believe," "expect," "intend,"
"anticipate," "estimate," "project," "may," "will," "should," "could,"
"predicts," "forecasts," "potential," or "continue" or similar terms or the
negative of these terms. The Company's ability to predict results or the actual
effects of its plans or strategies is inherently uncertain. Accordingly, actual
results may differ materially from anticipated results.
Factors that could have a material adverse effect on the operations of the
Company and its subsidiaries include, but are not limited to, changes in market
interest rates, general economic conditions, legislation, and regulation;
changes in monetary and fiscal policies of the United States Government,
including policies of the United States Treasury and Federal Reserve Board;
changes in the quality or composition of the loan or investment portfolios;
changes in deposit flows, competition, and demand for financial services, loan,
deposit, and investment products in the Company's local markets; changes in
accounting principles and guidelines; war or terrorist activities; and other
economic, competitive, governmental, regulatory, geopolitical and technological
factors affecting the Company's operations, pricing and services.
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Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this discussion. Although the
Company believes that the expectations reflected in the forward-looking
statements are reasonable, the Company cannot guarantee future results, levels
of activity, performance or achievements. 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.
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PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENT
BCB BANCORP INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition at
March 31, 2005 and December 31, 2004
(Unaudited)
(in thousands except for share data )
At At 3-MONTHS
31-Mar-05 31-Dec-04 Variance
ASSETS
Cash and amounts due from depository institutions $ 2,880 $ 2,353 $ 527
Interest-earning deposits 1,813 2,181 $ (368)
-------- -------- --------
Total cash and cash equivalents 4,693 4,534 $ 159
-------- -------- --------
Securities held to maturity 113,947 117,036 $ (3,089)
Loans receivable 261,677 246,380 $ 15,297
Premises and equipment 5,642 5,679 $ (37)
Federal Home Loan Bank of New York stock 944 944 $ -
Interest receivable, net 2,335 2,329 $ 6
Deferred income taxes 837 772 $ 65
Other assets 728 615 $ 113
-------- -------- --------
Total assets $390,803 378,289 $ 12,514
======== ======== --------
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits $ 344,940 337,243 $ 7,697
Borrowed Money 13,400 10,000 $ 3,400
Trust Preferred Borrowing 4,124 4,124
Other Liabilities 1,158 886 $ 272
-------- -------- --------
Total Liabilities 363,622 352,253 $ 11,369
-------- -------- --------
STOCKHOLDERS' EQUITY
Common Stock, $0.08 stated value: 10,000,000 shares
authorized, 2,993,538 shares
outstanding 239 239 $ -
Additional paid-in capital 27,725 27,725 $ -
Accumulated deficit (783) (1,928) $ 1,145
-------- -------- --------
Total stockholders' equity 27,181 26,036 $ 1,145
-------- -------- --------
Total liabilities and stockholders' equity $ 390,803 $378,289 $ 12,514
======== ======== --------
See accompanying notes to consolidated financial statements.
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BCB BANCORP INC. AND SUBSIDIARY
Consolidated Statements of Income
For the three months ended
March 31, 2005 and 2004
(Unaudited)
( in thousands except for per share data)
Three Months Ended
-------------------------------------
March 31,
-------------------------------------
2005 2004
------------- --------------
Interest income:
Loans $ 4,259 $ 3,277
Securities 1,434 1,291
Other interest-earning assets 10 31
------- -------
Total interest income 5,703 4,599
------- -------
Interest expense:
Deposits:
Demand 85 73
Savings and club 1,048 912
Certificates of deposit 682 406
------- -------
1,815 1,391
Borrowed money 121 92
------- -------
Total interest expense 1,936 1,483
------- -------
Net interest income 3,767 3,116
Provision for loan losses 260 200
------- -------
Net interest income after provision for loan losses 3,507 2,916
------- -------
Non-interest income:
Fees and service charges 121 130
Gain on sales of loans originated for sale 49 17
Gain on sales of securities available for sale - -
Other 6 6
Total non-interest income ------- -------
176 153
------- -------
Non-interest expense:
Salaries and employee benefits 1,025 976
Occupancy expense of premises 162 159
Equipment 367 347
Advertising 39 22
Other 307 394
------- -------
Total non-interest expense 1,900 1,898
------- -------
Income before income tax provision 1,783 1,171
Income tax provision 638 471
------- -------
Net Income $ 1,145 $ 700
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Net Income per common share
Basic $ 0.38 $ 0.24
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Diluted $ 0.37 $ 0.23
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Weighted average number of common shares outstanding-
basic 2,994 2,900
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diluted 3,137 3,110
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See accompanying notes to consolidated financial statements.