BCB Bancorp, Inc., Announces 13.3% Increase in Quarterly Earnings, Declares Cash
Dividend of $0.10 Per Share
BAYONNE, N.J. - July 29, 2008 - BCB Bancorp, Inc., Bayonne, NJ (NASDAQ: BCBP)
announced an increase in net earnings of $150,000 or 13.3% to $1,276,000 for the
three months ended June 30, 2008 from $1,126,000 for the three months ended June
30, 2007. Basic and diluted earnings per share were $0.28 and $0.27 per share
respectively for the three months ended June 30, 2008 as compared to $0.23 and
$0.23 per share, respectively, for the three months ended June 30, 2007. The
Company further reported an increase in net earnings of $191,000 or 8.0% to
$2,580,000 for the six months ended June 30, 2008 from $2,389,000 for the six
months ended June 30, 2007. Basic and diluted earnings per share were $0.56 and
$0.55 per share, respectively for the six months ended June 30, 2008 as compared
to $0.48 and $0.47 per share, respectively, for the six months ended June 30,
2007. The Board of Directors unanimously approved the distribution of a
quarterly cash dividend of $0.10 per common share for shareholders of record of
July 30, 2008 payable on August 15, 2008.
Total assets increased by $15.0 million or 2.7% to $578.5 million at June 30,
2008 from $563.5 million at December 31, 2007. Total cash and cash equivalents
decreased by $2.0 million or 16.9% to $9.8 million at June 30, 2008 from $11.8
million at December 31, 2007. Loans receivable increased by $27.9 million or
7.7% to $392.6 million at June 30, 2008 from $364.7 million at December 31,
2007. Investment securities held-to-maturity decreased by $13.2 million or 8.0%
to $151.8 million at June 30, 2008 from $165.0 million at December 31, 2007.
Deposits increased by $14.0 million or 3.5% to $412.8 million at June 30, 2008
from $398.8 million at December 31, 2007. Total stockholders' equity increased
by $1.1 million or 2.3% to $49.6 million at June 30, 2008 from $48.5 million at
December 31, 2007. The increase in stockholders' equity reflects net income of
$2.58 million and $622,000 realized from the exercise of stock options,
partially offset by a $1.0 million decrease reflecting the repurchase of 67,341
shares of common stock and the payment of cash dividends totaling $875,000. At
June 30, 2008, BCB Community Bank had Tier 1, Tier 1 Risk-Based and Total Risk
Based Capital of 9.12%, 13.25% and 14.40% respectively, and remained well
capitalized.
Net income increased by $150,000 or 13.3% to $1.28 million for the three months
ended June 30, 2008 from $1.13 million for the three months ended June 30, 2007.
The increase in net income was due to an increase in net interest income,
partially offset by increases in the provision of loan losses, non-interest
expense and income taxes and a decrease in non-interest income. Net interest
income increased by $684,000 or 16.3% to $4.9 million for the three months ended
June 30, 2008 from $4.2 million for the three months ended June 30, 2007. The
increase in net interest income resulted primarily from an increase of $55.5
million or 10.9% in the average balance of interest earning assets to $562.6
million for the three months ended June 30, 2008 from $507.1 million for the
three months ended June 30, 2007, partially offset by a decrease in the average
yield on interest earning assets to 6.41% for the three months ended June 30,
2008 from 6.52% for the three months ended June 30, 2007. The average balance of
interest bearing liabilities increased by $55.7 million or 12.9% to $488.2
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million for the three months ended June 30, 2008 from $432.5 million for the
three months ended June 30, 2007 and the average cost of interest bearing
liabilities decreased by thirty-eight basis points to 3.39% for the three months
ended June 30, 2008 from 3.77% for the three months ended June 30, 2007. As a
consequence, the Company's net interest margin increased to 3.46% for the three
months ended June 30, 2008 from 3.30% for the three months ended June 30, 2007.
Net income increased by $191,000 or 8.0% to $2.6 million for the six months
ended June 30, 2008 from $2.4 million for the six months ended June 30, 2007.
The increase in net income was due to an increase in net interest income,
partially offset by increases in the provision for loan losses, non-interest
expense and income taxes and a decrease in non-interest income. Net interest
income increased by $1.17 million or 14.0% to $9.55 million for the six months
ended June 30, 2008 from $8.38 million for the six months ended June 30, 2007.
This increase in net interest income resulted primarily from an increase of
$52.7 million or 10.5% in the average balance of interest earning assets to
$556.3 million for the six months ended June 30, 2008 from $503.6 million for
the six months ended June 30, 2007 while the average yield on interest earning
assets increased slightly to 6.50% for the six months ended June 30, 2008, from
6.49% for the six months ended June 30 2007. The average balance of interest
bearing liabilities increased by $55.1 million or 12.9% to $482.7 million for
the six months ended June 30, 2008 from $427.6 million for the six months ended
June 30, 2007, while the average cost of interest bearing liabilities decreased
to 3.53% for the six months ended June 30, 2008 from 3.73% for the six months
ended June 30, 2007. As a consequence, the Company's net interest margin
increased to 3.43% for the six months ended June 30, 2008 from 3.33% for the six
months ended June 30, 2007.
Donald Mindiak President & CEO commented that, "in spite of the challenging
operating environment for business in general and financial institutions
specifically, we recorded increases in net interest income and net income for
the three and six month time periods ended June 30, 2008 as compared to the same
time frame last year. While muted loan growth for the first six months of 2007
did not warrant additional loan loss provision entries, active loan growth in
2008, coupled with the challenging economy and prudent business management
necessitated provision entries of $300,000 and $550,000 for the three and six
months ended June 30, 2008. Notwithstanding the aforementioned, basic earnings
per share increased by 21.7% and 16.7% for the three and six month time periods
ended June 30, 2008, as compared to June 30, 2007.
"As asset quality continues to be a primary focus and concern of the Board and
management, I am pleased to report that we continue to have no exposure to any
sub-prime loans or any complex mortgage related derivative securities, and
classified asset balances have declined in the six months ended June 30, 2008.
At June 30, 2008, our nonperforming loans were 0.07% of total loans."
"The Board of Directors has unanimously approved, consistent with last quarter,
a quarterly cash dividend of $0.10/share to shareholders of record as of July
30, 2008, payable on August 15, 2008, reflecting the Board's philosophy in
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providing our shareholders with a competitive return on investment. This
represents a dividend payout ratio of 35.7% which we believe compares favorably
with our peers."
BCB Community Bank presently operates four offices, three located in Bayonne,
and one located in Hoboken, New Jersey.
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
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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.
It also should be noted that the Company occasionally evaluates opportunities to
expand through acquisition and may conduct due diligence activities in
connection with such opportunities. As a result, acquisition discussions and, in
some cases, negotiations, may take place in the future, and acquisitions
involving cash, debt, or equity securities may occur. Furthermore, the timing
and occurrence or non-occurrence of these events may be subject to circumstances
beyond the Company's control.
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.
Questions regarding the content of this release should be directed to either
Donald Mindiak, President & CEO, or Thomas Coughlin, COO & Principal Accounting
Officer.
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BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition at
June 30, 2008 and December 31, 2007
(Unaudited)
(in thousands except for share data )
At At
30-Jun-08 31-Dec-07
ASSETS
Cash and amounts due from depository institutions $ 2,867 $ 72,970
Interest-earning deposits 6,946 8,810
-------- --------
Total cash and cash equivalents 9,813 11,780
-------- --------
Securities held for sale 3,725 2,056
Securities held to maturity, fair value $151,469 and $165,660
respectively 151,783 165,017
Loans held for sale 1,551 2,132
Loans receivable, net of allowance for loan losses of $4,562 and
$4,065 respectively 392,584 364,654
Premises and equipment 5,766 5,929
Federal Home Loan Bank of New York stock 5,646 5,560
Interest receivable, net 3,714 3,776
Other real estate owned 1,345 287
Deferred income taxes 1,649 1,352
Other assets 945 934
-------- --------
Total assets $578,521 $563,477
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits $ 32,372 $235,897
Interest bearing deposits 380,379 362,922
-------- --------
Total deposits 412,751 398,819
Long-term Debt 114,124 114,124
Other Liabilities 2,016 2,024
-------- --------
Total Liabilities 528,891 514,967
STOCKHOLDERS' EQUITY
Common stock, stated value $0.06
10,000,000 shares authorized; 5,148,136 and
5,078,858 shares respectively, issued 329 325
Additional paid-in capital 46,413 45,795
Treasury stock, at cost, 507,992 and 440,651 shares,
respectively (8,394) (7,385)
Retained Earnings 11,454 9,749
Accumulated other comprehensive income (172) 26
-------- --------
Total stockholders' equity 49,630 48,510
-------- --------
Total liabilities and stockholders' equity $578,521 $563,477
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BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Income
For the three and six months ended
June 30, 2008 and 2007
(Unaudited)
(in thousands except for per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------- ---------------------------------
2008 2007 2008 2007
------------------------------- ---------------------------------
Interest income:
Loans $ 6,623 $ 5,876 $13,268 $11,632
Securities 2,281 2,063 4,620 4,107
Other interest-earning assets 108 320 181 608
------- ------- ------- -------
Total interest income 9,012 8,259 18,069 16,347
------- ------- ------- -------
Interest expense:
Deposits:
Demand 241 219 542 402
Savings and club 339 480 699 1,000
Certificates of deposit 2,300 2,498 4,741 4,859
------- ------- ------- -------
2,880 3,197 5,982 6,261
------- ------- ------- -------
Borrowed money 1,262 876 2,540 1,708
------- ------- ------- -------
Total interest expense 4,142 4,073 8,522 7,969
------- ------- ------- -------
Net interest income 4,870 4,186 9,547 8,378
Provision for loan losses 300 - 550 -
------- ------- ------- -------
Net interest income after provision for loan losses 4,570 4,186 8,997 8,378
------- ------- ------- -------
Non-interest income:
Fees and service charges 147 152 305 293
Gain on sales of loans originated for sale 20 129 100 250
Gain (loss) on sales of loans
Other 6 6 16 14
------- ------- ------- -------
Total non-interest income 173 287 421 557
------- ------- ------- -------
Non-interest expense:
Salaries and employee benefits 1,378 1,467 2,753 2,801
Occupancy expense of premises 262 245 525 480
Equipment 504 505 1,002 938
Advertising 71 99 122 194
Other 524 407 964 787
------- ------- ------- -------
Total non-interest expense 2,739 2,723 5,366 5,200
------- ------- ------- -------
Income before income tax provision 2,004 1,750 4,052 3,735
Income tax provision 728 624 1,472 1,346
------- ------- ------- -------
Net Income $ 1,276 $ 1,126 $ 2,580 $ 2,389
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Net Income per common share-basic and diluted
basic $ 0.28 $ 0.23 $ 0.56 $ 0.48
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diluted $ 0.27 $ 0.23 $ 0.55 $ 0.47
======= ======= ======= =======
Weighted average number of common shares outstanding-
basic 4,604 4,849 4,610 4,927
======= ======= ======= =======
diluted 4,691 4,982 4,705 5,059
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