BCB Bancorp, Inc., Announces Annual Earnings
Bayonne, N.J. - February 12, 2009 (BUSINESS WIRE) - BCB Bancorp, Inc., Bayonne,
NJ (NASDAQ: BCBP - News) announced net earnings of $3.47 million for the year
ended December 31, 2008 as compared to $4.44 million for the year ended December
31, 2007. Basic and diluted earnings per share were $0.75 and $0.74,
respectively, for the year ended December 31, 2008 as compared to $0.92 and
$0.90, respectively, for the year ended December 31, 2007. The weighted average
number of common shares outstanding for the year ended December 31, 2008 for
basic and diluted earnings per share calculations was 4,629,000 and 4,706,000
respectively. The weighted average number of shares outstanding for the year
ended December 31, 2007 for basic and diluted earnings per share calculation
purposes was 4,818,000 and 4,943,000.
Total assets increased by $15.1 million or 2.7% to $578.6 million at December
31, 2008 from $563.5 million at December 31, 2007. Total cash and cash
equivalents decreased by $5.0 million or 42.4% to $6.8 million at December 31,
2008 from $11.8 million at December 31, 2007. Securities held-to-maturity
decreased by $23.7 million or 14.4% to $141.3 million at December 31, 2008 from
$165.0 million at December 31, 2007. Loans receivable increased by $42.1 million
or 11.5% to $406.8 million at December 31, 2008 from $364.7 million at December
31, 2007. Deposit liabilities increased by $11.7 million or 2.9% to $410.5
million at December 31, 2008 from $398.8 million at December 31, 2007. Total
stockholders' equity increased by $1.2 million or 2.5% to $49.7 million at
December 31, 2008 from $48.5 million at December 31, 2007. The increase in
stockholders' equity primarily reflects net income of $3.5 million for the year
ended December 31, 2008 and the exercise of stock options during the year to
purchase 104,873 shares of the Company's common stock for a total of
approximately $925,000, partially offset by the repurchase of 93,029 shares of
the Company's common stock through the stock repurchase plans in place and
effect through the year totaling $1.3 million and cash dividends paid through
the year totaling $1.9 million.
Net income decreased by $970,000 or 21.8% to $3.47 million for the year ended
December 31, 2008 from $4.44 million for the year ended December 31, 2007. The
decrease in net income resulted primarily from a decrease in non-interest income
and increases in the provision for loan losses and non-interest expense,
partially offset by an increase in net interest income and a decrease in income
taxes. The decrease in non-interest income resulted primarily from an other than
temporary impairment (OTTI) charge of $2.9 million on a $3.0 million investment
in Federal National Mortgage Association (FNMA) preferred stock. The increase in
non-interest expense resulted primarily from the discovery of a check kiting
scheme by a commercial client of the Bank. The Bank recorded a $560,000 loss in
other non-interest expense related to this incident. The Bank and Company
anticipate that future recoveries may partially offset this loss, however there
can be no assurance of the level or probability of any recovery. The Bank and
the Company have notified its insurance carriers.
Net interest income increased by $2.8 million or 16.3% to $20.0 million for the
year ended December 31, 2008 from $17.2 million for the year ended December 31,
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2007. The increase in net interest income resulted primarily from an increase of
$37.7 million or 7.2% in the average balance of interest earning assets to
$564.5 million for the year ended December 31, 2008 from $526.8 million for the
year ended December 31, 2007 and an increase in the average yield on interest
earning assets to 6.49% for the year ended December 31, 2008 from 6.53% for the
year ended December 31, 2007. The average balance of interest bearing
liabilities increased by $40.3 million or 8.9% to $490.7 million at December 31,
2008 from $450.4 million at December 31, 2007 while the average cost of interest
bearing liabilities decreased to 3.40% for the year ended December 31, 2008 from
3.82% for the year ended December 31, 2007. As a result of the aforementioned,
our net interest margin increased to 3.54% for the year ended December 31, 2008
from 3.26% for the year ended December 31, 2007.
Donald Mindiak, President & CEO commented, "core business operational results
recorded improvements during the year as net interest income increased by $2.8
million or 16.3% year over year. While several one-time items adversely affected
our final operating results; the most significant of which was the OTTI charge
on our FNMA preferred stock, asset and credit quality have held up well to the
point where we have experienced negligible differences in delinquencies. Despite
the aforementioned, we added an additional $1.3 million in loan loss reserves
during the year to provide for the increased risk of loan losses resulting from
the challenging economic and real estate environment and an increase in real
estate owned to $1.4 million from $290,000."
"The Bank and Company have applied for TARP funding from the Federal Government,
however as of year end we have received no indication from the regulatory
agencies as to the disposition of our application. We remain open to the
prospect of utilizing this funding, however a final determination will be
reached upon information being received from those agencies about the status of
our application."
Mr. Mindiak continued, "The Board of Directors, unanimously declared a quarterly
cash dividend of $0.12/share, payable on Monday February 16, 2009, consistent
with our prior quarter's amount which represents the Board's philosophy of
providing our shareholders' with a competitive return on their investment. As
financial institutions continue to manage the intricacies of this challenging
operating environment, we will continue to research and explore initiatives that
have the capacity of increasing franchise and shareholder value."
BCB Community Bank presently operates four offices, three located in Bayonne and
one located in Hoboken, New Jersey.
Questions regarding the content of this release should be directed to either
Donald Mindiak, President & CEO, or Thomas Coughlin, COO & Principal Accounting
Officer at 201-823-0700.
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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
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
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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.
Consolidated Statements of Financial Condition
December 31,
------------------------------
2008 2007
------------------------------
(In Thousands, except for share
data and per share data)
Assets
Cash and amounts due from depository institutions $ 3,495 $ 2,970
Interest-bearing deposits 3,266 8,810
--------------- ---------------
Cash and Cash Equivalents 6,761 11,780
Securities available for sale 888 2,056
Securities held to maturity, fair value $143,245 and $165,660
respectively 141,280 165,017
Loans held for sale 1,422 2,132
Loans receivable, net of allowance for loan losses of $5,304 and $4,065
respectively 406,826 364,654
Premises and equipment 5,627 5,929
Federal Home Loan Bank of New York stock 5,736 5,560
Interest receivable 3,884 3,776
Real Estate Owned 1,435 287
Deferred income taxes 3,113 1,352
Other assets 1,652 934
--------------- ---------------
Total Assets $578,624 $563,477
=============== ===============
Liabilities and Stockholders' Equity
Liabilities
Non-interest bearing deposits $30,561 $35,897
Interest bearing deposits 379,942 362,922
--------------- ---------------
Total deposits 410,503 398,819
--------------- ---------------
Short-term borrowings 2,000 -
Long-term debt 114,124 114,124
Other liabilities 2,282 2,024
--------------- ---------------
Total Liabilities 528,909 514,967
--------------- ---------------
Stockholders' Equity
Common stock, stated value $0.06; 10,000,000 shares authorized; 5,183,371
and 5,078,858 shares, respectively, issued 331 325
Paid-in capital 46,864 45,795
Treasury stock, at cost, 533,680 and 440,651 shares, respectively (8,680) (7,385)
Retained earnings 11,325 9,749
Accumulated other comprehensive (loss) income (125) 26
--------------- ---------------
Total Stockholders' Equity 49,715 48,510
--------------- ---------------
Total Liabilities and Stockholders' Equity $578,624 $563,477
=============== ===============
Consolidated Statements of Income
Years Ended December 31,
------------------------------------------------------
2008 2007 2006
-------------- -------------- --------------
(In Thousands, Except for Per Share Data)
Interest Income
Loans, including fees $27,248 $24,365 $22,770
Securities 9,185 8,843 8,046
Other interest-earning assets 190 1,182 445
---------------- ---------------- ---------------
Total Interest Income 36,623 34,390 31,261
---------------- ---------------- ---------------
Interest Expense
Deposits:
Demand 1,046 1,006 426
Savings and club 1,370 1,866 2,611
Certificates of deposit 9,106 10,109 7,807
---------------- ---------------- ---------------
11,522 12,981 10,844
Borrowed money 5,141 4,236 2,633
---------------- ---------------- ---------------
Total Interest Expense 16,663 17,217 13,477
---------------- ---------------- ---------------
Net Interest Income 19,960 17,173 17,784
Provision for Loan Losses 1,300 600 625
---------------- ---------------- ---------------
Net Interest Income after Provision for Loan Losses 18,660 16,573 17,159
---------------- ---------------- ---------------
Non-Interest Income
Fees and service charges 689 629 595
Gain on sales of loans originated for sale 137 420 635
Gain on sale of real estate owned 1 13 -
Other than temporary impairment on security (2,915) - -
Other 34 30 30
---------------- ---------------- ---------------
Total Non-Interest (Loss) Income (2,054) 1,092 1,260
---------------- ---------------- ---------------
Non-Interest Expenses
Salaries and employee benefits 5,492 5,699 5,210
Occupancy expense of premises 1,059 1,000 900
Equipment 2,019 1,906 1,734
Advertising 241 326 329
Loss on overdrafts 560 - -
Other 1,943 1,787 1,459
---------------- ---------------- ---------------
Total Non-Interest Expenses 11,314 10,718 9,632
---------------- ---------------- ---------------
Income before Income Taxes 5,292 6,947 8,787
Income Taxes 1,820 2,509 3,220
---------------- ---------------- ---------------
Net Income $3,472 $4,438 $ 5,567
================ ================ ===============
Net Income per Common Share
Basic $0.75 $0.92 $1.11
---------------- ---------------- ---------------
Diluted $0.74 $0.90 $1.08
---------------- ---------------- ---------------
Weighted Average Number of Common Shares Outstanding
Basic 4,629 4,818 5,005
---------------- ---------------- ---------------
Diluted 4,706 4,943 5,172
---------------- ---------------- ---------------