BCB Bancorp, Inc., Announces Increase in Annual Earnings
Bayonne, N.J. - February 9, 2010 (BUSINESS WIRE) - BCB Bancorp, Inc., Bayonne,
NJ (NASDAQ: BCBP - News) announced an increase in net earnings of $276,000 or
8.0% to $3.75 million for the year ended December 31, 2009 from $3.47 million
for the year ended December 31, 2008. Basic and diluted earnings per share were
$0.81 and $0.80, respectively, for the year ended December 31, 2009 as compared
to $0.75 and $0.74, respectively, for the year ended December 31, 2008. The
weighted average number of common shares outstanding for the year ended December
31, 2009 for basic and diluted earnings per share calculations was 4,655,000 and
4,676,000 respectively. The weighted average number of shares outstanding for
the year ended December 31, 2008 for basic and diluted earnings per share
calculation purposes was 4,629,000 and 4,706,000.
Total assets increased by $52.9 million or 9.1% to $631.5 million at December
31, 2009 from $578.6 million at December 31, 2008. Total cash and cash
equivalents increased by $60.5 million to $67.3 million at December 31, 2009
from $6.8 million at December 31, 2008. Securities held-to-maturity decreased by
$8.7 million or 6.2% to $132.6 million at December 31, 2009 from $141.3 million
at December 31, 2008. Loans receivable decreased by $4.9 million or 1.2% to
$401.9 million at December 31, 2009 from $406.8 million at December 31, 2008.
Deposit liabilities increased by $53.2 million or 13.0% to $463.7 million at
December 31, 2009 from $410.5 million at December 31, 2008. Total stockholders'
equity increased by $1.7 million or 3.4% to $51.4 million at December 31, 2009
from $49.7 million at December 31, 2008. The increase in stockholders' equity
primarily reflects net income of $3.75 million for the year ended December 31,
2009 and the exercise of stock options during the year to purchase 11,933 shares
of the Company's common stock for a total of approximately $63,000, partially
offset by the repurchase of 4,072 shares of the Company's common stock in the
stock repurchase plans in place and undertaken during the year totaling $39,000
and cash dividends paid to shareholders during the year totaling $2.2 million.
Net income increased by $276,000 or 8.0% to $3.75 million for the year ended
December 31, 2009 from $3.47 million for the year ended December 31, 2008. The
increase in net income resulted primarily from an increase in non-interest
income, partially offset by a decrease in net interest income and increases in
the provision for loan losses, non-interest expense and income taxes.
Net interest income decreased by $576,000 or 2.9% to $19.4 million for the year
ended December 31, 2009 from $20.0 million for the year ended December 31, 2008.
The decrease in net interest income resulted primarily from a decrease in the
average yield on interest earning assets to 5.74% for the year ended December
31, 2009 from 6.49% for the year ended December 31, 2008, partially offset by an
increase of $34.3 million or 6.1% in the average balance of interest earning
assets to $598.8 million for the year ended December 31, 2009 from $564.5
million for the year ended December 31, 2008. The average balance of interest
bearing liabilities increased by $34.3 million or 7.0% to $525.0 million at
December 31, 2009 from $490.7 million at December 31, 2008 while the average
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cost of interest bearing liabilities decreased to 2.86% for the year ended
December 31, 2009 from 3.40% for the year ended December 31, 2008. As a result
of the aforementioned, our net interest margin decreased to 3.24% for the year
ended December 31, 2009 from 3.54% for the year ended December 31, 2008.
Donald Mindiak, President & CEO commented, "balance sheet growth has continued
at a measured pace commensurate with our capital levels. Operating results
improved and as a result, earnings per share increased during 2009 by $0.06 or
8.0% and 8.1%, respectively, to $0.81 and $0.80 basic and diluted from $0.75 and
$0.74, respectively for 2008. Since asset quality remains the most critical
component of management's focus, loan loss provision accruals were increased
over prior year by $250,000, to $1.55 million, reflecting management's
assessment of possible and estimable losses on our portfolio. The increase in
the allowance also reflects management's review of the strength of the local
economy during the current recession. Our business combination transaction with
Pamrapo Bancorp, Inc., continues its progress toward completion and it is now
anticipated to be completed late in the first quarter of 2010."
Mr. Mindiak continued, "The Board of Directors, unanimously declared a quarterly
cash dividend of $0.12/share, payable on Monday February 15, 2010, consistent
with our prior quarter's amount. The payment of cash dividends represents the
Board's philosophy of providing our shareholders' with a competitive return on
their investment. We are proud to have paid continuing cash dividends for the
past twelve quarters. 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.
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
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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
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
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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
(Unaudited) December 31,
-----------------------------
2009 2008
---------- ----------
(In Thousands, except for share
data and per share data)
Merger related expenses
Cash and amounts due from depository institutions $ 3,587 $ 3,495
Interest-earning deposits 63,760 3,266
--------------- ---------------
Cash and Cash Equivalents 67,347 6,761
Securities available for sale 1,346 888
Securities held to maturity, fair value $133,050 and $143,245
Respectively 132,644 141,280
Loans held for sale 4,275 1,422
Loans receivable, net of allowance for loan losses of $6,644 and $5,304
respectively 401,872 406,826
Premises and equipment 5,359 5,627
Federal Home Loan Bank of New York stock 5,714 5,736
Interest receivable 3,799 3,884
Real Estate Owned 1,270 1,435
Deferred income taxes 3,618 3,113
Other assets 4,259 1,652
--------------- ---------------
Total Assets $631,503 $578,624
=============== ===============
Liabilities and Stockholders' Equity
Liabilities
Non-interest bearing deposits $37,082 $30,561
Interest bearing deposits 426,656 379,942
--------------- ---------------
Total deposits 463,738 410,503
--------------- ---------------
Short-term borrowings - 2,000
Long-term debt 114,124 114,124
Other liabilities 2,250 2,282
--------------- ---------------
Total Liabilities 580,112 528,909
--------------- ---------------
Stockholders' Equity
Common stock, stated value $0.06; 10,000,000 shares authorized; 5,195,658
and 5,183,731 shares, respectively, issued 332 331
Paid-in capital 46,926 46,864
Treasury stock, at cost, 537,752 and 533,680 shares, respectively (8,719) (8,680)
Retained earnings 12,839 11,325
Accumulated other comprehensive (loss) income 13 (125)
--------------- ---------------
Total Stockholders' Equity 51,391 49,715
--------------- ---------------
Total Liabilities and Stockholders' Equity $631,503 $578,624
=============== ===============
Consolidated Statements of Income
(Unaudited) Years Ended December 31,
------------------------------------------------------
2009 2008 2007
(In Thousands, Except for Per Share Data)
Interest Income
Loans, including fees $27,349 $27,248 $24,365
Securities 6,982 9,185 8,843
Other interest-earning assets 47 190 1,182
---------------- ---------------- ---------------
Total Interest Income 34,378 36,623 34,390
---------------- ---------------- ---------------
Interest Expense
Deposits:
Demand 877 1,046 1,006
Savings and club 1,157 1,370 1,866
Certificates of deposit 7,984 9,106 10,109
---------------- ---------------- ---------------
10,018 11,522 12,981
Borrowed money 4,976 5,141 4,236
---------------- ---------------- ---------------
Total Interest Expense 14,994 16,663 17,217
---------------- ---------------- ---------------
Net Interest Income 19,384 19,960 17,173
Provision for Loan Losses 1,550 1,300 600
---------------- ---------------- ---------------
Net Interest Income after Provision for Loan Losses 17,834 18,660 16,573
---------------- ---------------- ---------------
Non-Interest Income
Fees and service charges 657 689 629
Gain on sales of loans originated for sale 225 137 420
Gain on sale of real estate owned 13 1 13
Other than temporary impairment on security - (2,915) -
Other 36 34 30
---------------- ---------------- ---------------
Total Non-Interest (Loss) Income 931 (2,054) 1,092
---------------- ---------------- ---------------
Non-Interest Expenses
Salaries and employee benefits 5,403 5,492 5,699
Occupancy expense of premises 1,122 1,059 1,000
Equipment 2,124 2,019 1,906
Advertising 273 241 326
Merger related expenses 648 172 -
Loss on overdrafts - 560 -
Other 2,826 1,771 1,787
---------------- ---------------- ---------------
Total Non-Interest Expenses 12,396 11,314 10,718
---------------- ---------------- ---------------
Income before Income Taxes 6,639 5,292 6,947
Income Taxes 2,621 1,820 2,509
---------------- ---------------- ---------------
Net Income $3,748 $3,472 $4,438
================ ================ ===============
Net Income per Common Share
Basic $0.81 $0.75 $0.92
---------------- ---------------- ---------------
Diluted $0.80 $0.74 $0.90
---------------- ---------------- ---------------
Weighted Average Number of Common Shares Outstanding
Basic 4,655 4,629 4,818
---------------- ---------------- ---------------
Diluted 4,676 4,706 4,943
---------------- ---------------- ---------------