BCB Bancorp, Inc., Announces Quarterly Earnings (Unaudited), Increase in
Quarterly Cash Dividend
BAYONNE, N.J. - April 24, 2007 - BCB Bancorp, Inc., Bayonne, NJ (NASDAQ: BCBP)
announced net earnings of $1.26 million for the quarter ended March 31, 2007
compared to $1.33 million for the quarter ended March 31, 2006. Basic and
diluted earnings per share were both $0.25 for the three months ended March 31,
2007 as compared to $0.27 and $0.26 per share, respectively, for the three
months ended March 31, 2006. The weighted average number of common shares
outstanding for the three months ended March 31, 2007 for basic and diluted
earnings per share calculation purposes was 5,006,000 and 5,136,000
respectively. The weighted average number of common shares outstanding for the
three months ended March 31, 2006 for basic and diluted earnings per share
calculation purposes was 5,002,000 and 5,159,000 respectively.
As of March 31, 2007 total assets increased by $6.8 million or 1.3% to $517.6
million from $510.8 million at December 31, 2006. Total cash and cash
equivalents increased by $9.9 million or 38.4% to $35.7 million at March 31,
2007 from $25.8 million at December 31, 2006. Loans receivable decreased by $1.9
million or 0.6% to $316.2 million at March 31, 2007 from $318.1 million at
December 31, 2006. Securities held-to-maturity decreased by $1.0 million or 0.7%
to $147.7 million at March 31, 2007 from $148.7 million at December 31, 2006.
Deposits increased by $5.8 million or 1.5% to $388.5 million at March 31, 2007
from $382.7 million at December 31, 2006. Total stockholders' equity increased
by $497,000 or 1.0% to $52.5 million at March 31, 2007 from $52.0 million at
December 31, 2006 reflecting net income of $1.26 million and $42,000 from the
exercise of stock options, partially offset by a $457,000 decrease due to the
repurchase of 26,438 shares of common stock and the payment of a quarterly cash
dividend totaling $351,000.
Net income decreased by $66,000 or 5.0% to $1.26 million for the three months
ended March 31, 2007 from $1.33 million for the three months ended March 31,
2006. The decrease in net income primarily reflects decreases in net interest
income, and non-interest income, and an increase in non-interest expense;
partially offset by decreases in the provision for loan losses and income taxes.
Net interest income decreased by $239,000 or 5.4% to $4.2 million for the three
months ended March 31, 2007 from $4.4 million for the three months ended March
31, 2006. This decrease resulted primarily from a decrease in the net interest
margin to 3.35% for the three months ended March 31, 2007 from 3.82% for the
three months ended March 31, 2006, as the cost of interest bearing liabilities
increased at a more rapid pace than the yield on interest earning assets,
reflecting the effects of the inverted yield curve. The cost of interest bearing
liabilities increased by seventy-six basis points to 3.69% for the three months
ended March 31, 2007 from 2.93% for the three months ended March 31, 2006. This
was partially offset by an increase in average interest earning assets of $36.3
million or 7.8% to $500.3 million for the three months ended March 31, 2007 from
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$464.0 million for the three months ended March 31, 2006, and an increase in the
yield on interest earning assets to 6.47% for the three months ended March 31,
2007 from 6.32% for the three months ended March 31, 2006.
Donald Mindiak President & CEO commented that, "while net income decreased
marginally due to a decrease in the net interest margin during the first
quarter, our Company continues to grow the balance sheet while maintaining a
high level of asset quality. On a linked quarter basis interest expense was
lower during the first quarter of 2007 than the fourth quarter of 2006 and this
trend is anticipated to continue. With a loan pipeline of over $40.0 million as
of March 31, 2007, once these loans close, interest income is expected to
increase. During the quarter we changed the name of our subsidiary bank to BCB
Community Bank reflecting our desire to serve the areas adjacent to Bayonne, New
Jersey.
I am pleased to announce that the Board of Directors has increased the cash
dividend to $0.08/share for the first quarter. This 14.3% increase in our cash
dividend from last quarter as well as the continuation of our stock repurchase
plan reflects of the Board's resolve to implement initiatives that have the
capacity to increase shareholder and franchise value. The cash dividend will be
paid on May 15, 2007 to shareholders of record on April 24, 2007."
BCB 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 Company's Annual Report on Form 10-K and in other documents filed by the
Company 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;
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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
March 31, 2007 and December 31, 2006
(Unaudited)
(in thousands except for share data)
At At
31-Mar-07 31-Dec-06
---------- -----------
ASSETS
Cash and amounts due from depository institutions.... $ 2,846 $ 63,400
Interest-earning deposits............................ 32,850 22,437
--------- ---------
Total cash and cash equivalents................... 35,696 25,837
--------- ---------
Securities held to maturity.......................... 147,737 148,672
Loans held for sale.................................. 3,003 2,976
Loans receivable, net................................ 316,187 318,130
Premises and equipment............................... 6,104 5,885
Federal Home Loan Bank of New York stock............. 3,724 3,724
Interest receivable, net............................. 3,120 3,697
Deferred income taxes................................ 1,239 1,238
Other assets......................................... 775 676
--------- ---------
Total assets..................................... 517,585 510,835
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits............................................. 388,487 382,747
Long-term Debt....................................... 74,124 74,124
Other Liabilities.................................... 2,514 2,001
--------- ---------
Total Liabilities................................ 465,125 458,872
--------- ---------
STOCKHOLDERS' EQUITY
Common stock, stated value $0.06
10,000,000 shares authorized; 5,068,331 and 5,063,432 shares,
respectively, issued................................. 324 324
Additional paid-in capital........................... 45,674 45,632
Treasury stock, at cost, 81,731 and 55,293 shares,
respectively......................................... (1,316) (859)
Retained Earnings.................................... 7,778 6,866
--------- ---------
Total stockholders' equity....................... 52,460 51,963
--------- ---------
Total liabilities and stockholders' equity...... $ 517,585 $ 510,835
========= =========
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, 2007 and 2006
(Unaudited)
( in thousands except for per share data)
Three Months Ended
March 31,
-----------------------------------------
2007 2006
-----------------------------------------
Interest income:
Loans................................................ $ 5,756 $ 5,342
Securities........................................... 2,044 1,816
Other interest-earning assets........................ 288 175
--------- --------
Total interest income............................. 8,088 7,333
--------- --------
Interest expense:
Deposits:
Demand ........................................... 183 82
Savings and club.................................. 520 813
Certificates of deposit........................... 2,361 1,515
--------- --------
3,064 2,410
--------- --------
Borrowed money.................................... 832 492
--------- --------
Total interest expense.......................... 3,896 2,902
--------- --------
Net interest income.................................... 4,192 4,431
Provision for loan losses.............................. - 250
--------- --------
Net interest income, after provision for loan losses... 4,192 4,181
--------- --------
Non-interest income:
Fees and service charges............................ 141 155
Gain on sales of loans originated for sale.......... 121 136
Other............................................... 8 7
--------- --------
Total non-interest income........................ 270 298
--------- --------
Non-interest expense:
Salaries and employee benefits...................... 1,334 1,299
Occupancy expense of premises....................... 235 218
Equipment........................................... 433 450
Advertising......................................... 95 61
Other............................................... 380 333
--------- --------
Total non-interest expense....................... 2,477 2,361
--------- --------
Income before income tax provision..................... 1,985 2,118
Income tax provision................................... 722 789
--------- --------
Net Income............................................. $ 1,263 $ 1,329
========= ========
Net Income per common share-basic and diluted
basic...................................... $ 0.25 $ 0.27
========= ========
diluted.................................... $ 0.25 $ 0.26
========= ========
Weighted average number of common shares outstanding-
basic...................................... 5,006 5,002
========= ========
diluted.................................... 5,136 5,159
========= ========
See accompanying notes to consolidated financial statements.
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BCB BANCORP INC. AND SUBSIDIARY
Consolidated Statement of Changes in Stockholders' Equity
For the three months ended March 31, 2007
(Unaudited)
( in thousands)
Additional Treasury Retained
Common Stock Paid-In Capital Stock Earnings Total
------------ --------------- ------- -------- -------
Balance, December 31, 2006............. $ 324 $ 45,632 $ (859) $ 6,866 $ 51,963
Exercise of Stock Options............... - 42 - - 42
Treasury Stock Purchases................ - (457) - (457)
Cash dividend ($0.07per share) declared. - - (351) (351)
Net income for the three months ended
March 31, 2007..................... - - - 1,263 1,263
Balance, March 31, 2007................. $ 324 $ 45,674 $ (1,316) $ 7,778 $ 52,460
See accompanying notes to consolidated financial statements.
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BCB BANCORP INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
For the three months ended
March 31, 2007 and 2006
(Unaudited)
( in thousands)
Three Months Ended
March 31,
-----------------------------------
2007 2006
-----------------------------------
Cash flows from operating activities :
Net Income.............................................. $ 1,263 $ 1,329
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation...................................... 88 85
Amortization and accretion, net................... (168) (145)
Provision for loan losses......................... - 250
Stock-based compensation.......................... - 20
Deferred income tax............................... (1) (54)
Loans originated for sale......................... (6,014) (6,818)
Proceeds from sale of loans originated for sale... 6,108 6,510
(Gain) on sale of loans originated for sale....... (121) (136)
Decrease in interest receivable................... 577 160
Decrease in subscriptions receivable.............. - 2,353
(Increase) Decrease in other assets............... (99) 476
(Decrease) Increase in accrued interest payable... (2) 61
Increase in other liabilities..................... 515 346
-------- --------
Net cash provided by operating activities.. 2,146 4,437
-------- --------
Cash flows from investing activities:
Proceeds from maturation of security held to maturity. - 5,000
Purchases of security held to maturity................ - (7,500)
Proceeds from repayments on securities held to maturity 938 1,311
Net decrease(increase) in loans receivable............ 2,108 (24,227)
Additions to premises and equipment................... (307) (19)
-------- --------
Net cash (used in) investing activities........ 2,739 (25,435)
-------- --------
Cash flows from financing activities:
Net increase in deposits.............................. 5,740 14,741
Purchases of treasury stock........................... (457) (24)
Cash dividend paid.................................... (351) 40
Exercise of stock options............................. 42 (9)
-------- --------
Net cash provided by financing activities...... 4,974 14,748
-------- --------
Net increase in cash and cash equivalents................... 9,859 (6,250)
Cash and cash equivalents-begininng......................... 25,837 25,147
-------- --------
Cash and cash equivalents-ending............................ $ 35,696 $18,897
======== ========
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Income taxes....................................... $ 138 $ -
Interest........................................... 3,898 2,841
See accompanying notes to consolidated financial statements.