BCB Bancorp, Inc. Announces Record Third Quarter Earnings
Bayonne, N.J. - (BUSINESS WIRE) - October 23, 2006 - BCB Bancorp, Inc., Bayonne,
N.J. (NASDAQ: BCBP - News), announced unaudited net earnings of $1,465,000 for
the three months ended September 30, 2006, an increase of $274,000 or 23.0%,
compared to $1,191,000 for the three months ended September 30, 2005. The
Company further reported unaudited net earnings of $4,209,000, for the nine
months ended September 30, 2006, an increase of $664,000 or 18.7% from
$3,545,000 for the nine months ended September 30, 2005.
As of September 30, 2006, total assets increased by $43.6 million or 9.4% to
$509.8 million from $466.2 million at December 31, 2005. Loans receivable
increased by $29.9 million or 10.5% to $314.4 million at September 30, 2006 from
$284.5 million at December 31, 2005. Securities classified as held-to-maturity
increased by $28.7 million or 20.5% to $168.7 million at September 30, 2006 from
$140.0 million at December 31, 2005. Deposit liabilities increased by $19.9
million or 5.5% to $382.8 million at September 30, 2006 from $362.9 million at
December 31, 2005. Borrowings increased by $20.0 million or 37.0% to $74.1
million at September 30, 2006 from $54.1 million at December 31, 2005. Total
stockholders' equity increased by $2.8 million or 5.9% to $50.6 million at
September 30, 2006 from $47.8 million at December 31, 2005.
Net income increased by $274,000 or 23.0% to $1.5 million for the three months
ended September 30, 2006 from $1.2 million for the three months ended September
30, 2005. The increase in net income was due to increases in net interest
income, non-interest income and a decrease in the provision for loan losses
partially offset by increases in non-interest expense and income taxes. Net
interest income increased by $444,000 or 11.1% to $4.4 million for the three
months ended September 30, 2006 from $4.0 million for the three months ended
September 30, 2005. This increase resulted primarily from an increase in average
interest earning assets of $78.6 million or 19.2% to $488.9 million for the
three months ended September 30, 2006 from $410.3 million for the three months
ended September 30, 2005. Average interest bearing liabilities increased $47.6
million or 13.1% to $412.3 million for the three months ended September 30, 2006
from $364.7 million for the three months ended September 30, 2005. Average
stockholders' equity increased $22.5 million or 79.2% to $50.9 million for the
three months ended September 30, 2006 from $28.4 million for the three months
ended September 30, 2005. The Bank's net interest margin decreased to 3.62% for
the three months ended September 30, 2006 from 3.88% for the three months ended
September 30, 2005, reflecting the effect of the flat to inverted yield curve
during the past three months.
Net income increased by $664,000 or 18.7% to $4.2 million for the nine months
ended September 30, 2006 from $3.6 million for the nine months ended September
30, 2005. The increase in net income was due to increases in net interest
income, non-interest income and a decrease in the provision for loan losses
partially offset by increases in non-interest expense and income taxes. Net
interest income increased by $1.8 million or 15.4% to $13.5 million for the nine
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months ended September 30, 2006 from $11.7 million for the nine months ended
September 30, 2005. This increase resulted primarily from an increase in average
interest earning assets of $85.1 million or 21.8% to $476.1 million for the nine
months ended September 30, 2006 from $391.0 million for the nine months ended
September 30, 2005. Average interest bearing liabilities increased $57.0 million
or 16.5% to $403.0 million for the nine months ended September 30, 2006 from
$346.0 million for the nine months ended September 30, 2005. Average
stockholders' equity increased $20.9 million or 72.6% to $49.7 million for the
nine months ended September 30, 2006 from $28.8 million for the nine months
ended September 30, 2005. Net interest margin decreased to 3.78% for the nine
months ended September 30, 2006 from 4.00% for the nine months ended September
30, 2005, reflecting the effect of the flat to inverted yield curve during the
past nine months.
Donald Mindiak, President & CEO commented that, "operational results continue to
be positive as we moderate our balance sheet growth. We were pleased to pay our
first cash dividend during the quarter, and proud to learn that effective June
30, 2006, according to FDIC statistics, we have become the largest depository in
the City of Bayonne. Asset quality remains a top priority. Despite a slowing in
loan growth, we will continue to maintain stringent underwriting standards in
order to maintain uncompromised asset quality. In our pursuit to expand our
market area, the opening of our fourth office in Hoboken, New Jersey should
occur during the first quarter of 2007. As we continue to face challenges from
various perspectives, we will endeavor to embrace the opportunities these
challenges present in our on-going effort to enhancing franchise and shareholder
value."
The Company's banking subsidiary, Bayonne Community Bank presently operates
three offices located in Bayonne, New Jersey.
Please contact Donald Mindiak, President, or Thomas Coughlin, Chief Financial
Officer at 201-823-0700.
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,"
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"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.
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
September 30, 2006 and December 31, 2005
(Unaudited)
(in thousands except for share data )
At At
30-Sep-06 31-Dec-05
ASSETS
Cash and amounts due from depository institutions.................. $ 2,608 $ 2,987
Interest-earning deposits ......................................... 7,680 22,160
--------- --------
Total cash and cash equivalents................................. 10,288 25,147
--------- --------
Securities held to maturity........................................ 168,738 140,002
Loans held for sale................................................ 1,716 780
Loans receivable, net.............................................. 314,441 284,451
Premises and equipment............................................. 5,355 5,518
Federal Home Loan Bank of New York stock........................... 3,724 2,778
Interest receivable, net........................................... 3,427 3,104
Subscriptions Receivable........................................... - 2,353
Deferred income taxes.............................................. 1,212 997
Other assets ...................................................... 857 1,112
--------- --------
Total assets................................................... 509,758 466,242
========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits........................................................... 382,818 362,851
Long-term Debt..................................................... 74,124 54,124
Other Liabilities.................................................. 2,219 1,420
--------- --------
Total Liabilities.............................................. 459,161 418,395
--------- --------
STOCKHOLDERS' EQUITY
Common stock, stated value $0.06
10,000,000 shares authorized; 5,060,480 and 5,050,552 shares,
respectively, issued............................................... 324 323
Additional paid-in capital......................................... 45,617 45,518
Treasury stock, at cost, 54,820 and 51,316 shares,
respectively....................................................... (851) (795)
Retained Earnings.................................................. 5,507 2,801
--------- --------
Total stockholders' equity..................................... 50,597 47,847
--------- --------
Total liabilities and stockholders' equity.................... $ 509,758 $466,242
========= =========
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BCB BANCORP INC. AND SUBSIDIARY
Consolidated Statements of Income
For the three and nine months ended
September 30, 2006 and 2005
(Unaudited)
( in thousands except for per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------- ----------------------------
2006 2005 2006 2005
-------------------------------- ----------------------------
Interest income:
Loans.......................................... $ 5,844 $ 4,859 $ 16,903 13,741
Securities..................................... 2,083 1,570 5,774 4,475
Other interest-earning assets.................. 93 13 373 27
------- ------- ------- -------
Total interest income....................... 8,020 6,442 23,050 18,243
------- ------- ------- -------
Interest expense:
Deposits:
Demand...................................... 109 81 277 249
Savings and club............................ 591 984 2,066 3,059
Certificates of deposit..................... 2,156 1,008 5,428 2,511
------- ------- ------- -------
2,856 2,073 7,771 5,819
------- ------- ------- -------
Borrowed money.............................. 737 386 1,781 696
------- ------- ------- -------
Total interest expense.................... 3,593 2,459 9,552 6,515
------- ------- ------- -------
Net interest income.............................. 4,427 3,983 13,498 11,728
Provision for loan losses ....................... 50 200 625 760
------- ------- ------- -------
Net interest income after provision for loan losses 4,377 3,783 12,873 10,968
------- ------- ------- -------
Non-interest income:
Fees and service charges...................... 149 146 437 403
Gain on sales of loans originated for sale.... 151 52 489 157
Gain (loss) on sales of loans................. - -
Gain on sale of securities.................... - - - 28
Other......................................... 8 7 21 19
------- ------- ------- -------
Total non-interest income.................. 308 205 947 607
------- ------- ------- -------
Non-interest expense:
Salaries and employee benefits................ 1,306 1,125 3,858 3,240
Occupancy expense of premises................. 238 187 676 511
Equipment..................................... 408 436 1,299 1,170
Advertising................................... 86 34 241 111
Other......................................... 358 313 1,087 934
------- ------- ------- -------
Total non-interest expense................ 2,396 2,095 7,161 5,966
------- ------- ------- -------
Income before income tax provision.............. 2,289 1,893 6,659 5,609
Income tax provision............................ 824 702 2,450 2,064
------- ------- ------- -------
Net Income...................................... $ 1,465 $ 1,191 $ 4,209 $ 3,545
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Net Income per common share-basic and diluted
basic............................. $ 0.29 $ 0.32 $ 0.84 $ 0.95
======= ======= ======= =======
diluted .......................... $ 0.28 $ 0.31 $ 0.81 $ 0.91
======= ======= ======= =======
Weighted average number of common shares outstanding-
basic..................................... 5,006 3,716 5,004 3,731
======= ======= ======= =======
diluted .................................. 5,181 3,901 5,176 3,910
======= ======= ======= =======