10-31-13 1:01 PM EDT | Email Article

BCB Bancorp, Inc., Bayonne, NJ (NASDAQ:BCBP) announced net income of $2.14 million for the three months ended September 30, 2013 compared with a net loss of $1.35 million for the three months ended September 30, 2012. Basic and diluted earnings per share were $0.24 for the three months ended September 30, 2013 as compared to a loss per share of ($0.15) for the three months ended September 30, 2012. The weighted average number of common shares outstanding for the three months ended September 30, 2013 for basic and diluted earnings per share calculations was approximately 8,365,000 and 8,368,000, respectively. The weighted average number of common shares outstanding for the three months ended September 30, 2012 for basic and diluted earnings per share calculations was approximately 8,685,000 and 8,685,000, respectively. Net income was $7.1 million for the nine months ended September 30, 2013 compared with a net loss of ($3.1) million for the nine months ended September 30, 2012. Basic and diluted earnings per share were $0.80 for the nine months ended September 30, 2013 as compared to a loss per share of ($0.34) for the nine months ended September 30, 2012. The weighted average number of common shares outstanding for the nine months ended September 30, 2013 for basic and diluted earnings per share calculations was approximately 8,419,000 and 8,423,000, respectively. The weighted average number of common shares outstanding for the nine months ended September 30, 2012 for basic and diluted earnings per share calculations was approximately 9,088,000 and 9,088,000, respectively.

Total assets increased by $12.0 million or 1.0% to $1.183 billion at September 30, 2013 from $1.171 billion at December 31, 2012. The increase in total assets occurred as a result of an increase in net loans receivable of $65.1 million, partially offset by a decrease in securities held to maturity of $45.7 million and a decrease in total cash and cash equivalents of $1.9 million. Total cash and cash equivalents decreased by $1.9 million or 5.6% to $32.2 million at September 30, 2013 from $34.1 million at December 31, 2012. Investment securities classified as held-to-maturity decreased by $45.7 million or 27.8% to $118.9 million at September 30, 2013 from $164.6 million at December 31, 2012. Net loans receivable increased by $65.1 million or 7.1% to $987.4 million at September 30, 2013 from $922.3 million at December 31, 2012. Deposit liabilities increased by $27.2 million or 2.9% to $968.0 million at September 30, 2013 from $940.8 million at December 31, 2012. We had no outstanding short-term borrowing money at September 30, 2013 compared with $17.0 million in short-term borrowings at December 31, 2012. Long-term borrowed money remained constant at $114.1 million at September 30, 2013 and December 31, 2012, respectively. Stockholders’ equity increased by $2.3 million or 2.5% to $93.9 million at September 30, 2013 from $91.6 million at December 31, 2012. The increase in stockholders’ equity is primarily attributable to net income of $7.1 million offset by the Company repurchasing during the period 183,199 shares of the Company’s common stock at a cost of $1.9 million as well as the payment and accrual of cash dividends during the period totaling $3.0 million on outstanding common shares of stock and $390,000 on outstanding preferred shares of stock.

Net income was $2.14 million for the three months ended September 30, 2013 compared with a net loss of ($1.35) million for three months ended September 30, 2012. Our net income is primarily reflective of an increase in total interest income and total non-interest income as well as with decreases in total interest expense, provision for loan losses and non-interest expense, partially offset by an increase in the income tax provision.

Net interest income increased by $1.3 million or 12.6% to $11.6 million for the three months ended September 30, 2013 from $10.3 million for the three months ended September 30, 2012. The increase in net interest income resulted primarily from an increase in the average yield on interest earning assets of thirty-four basis points to 4.92% for the three months ended September 30, 2013 from 4.58% for the three months ended September 30, 2012, along with an increase in the average balance of interest earning assets of $13.0 million or 1.1% to $1.158 billion for the three months ended September 30, 2013 from $1.145 billion for the three months ended September 30, 2012. While yields on the individual components of interest-earning assets generally declined, the overall yield on interest-earning assets increased due to a reallocation of assets into higher yielding loans. The average balance of interest bearing liabilities decreased by $15.7 million or 1.6% to $976.3 million for the three months ended September 30, 2013 from $992.0 million for the three months ended September 30, 2012, while the average cost of interest bearing liabilities decreased by six basis points to 1.09% for the three months ended September 30, 2013 from 1.15% for the three months ended September 30, 2012. As a consequence of the aforementioned, our net interest margin increased by forty-two basis points to 4.00% for the three months ended September 30, 2013 from 3.58% for the three months ended September 30, 2012.

Net income was $7.1 million for the nine months ended September 30, 2013 compared with a net loss of ($3.1) million for the nine months ended September 30, 2012. Our net income reflects increases in net interest income and non-interest income and decreases in non-interest expense and provision for loan losses, partially offset by an increase in income tax provision. Net interest income increased by $3.8 million or 12.3% to $34.6 million for the nine months ended September 30, 2013 from $30.8 million for the nine months ended September 30, 2012. This increase in net interest income resulted primarily from an increase in the average yield of interest earning assets to 4.95% for the nine months ended September 30, 2013 from 4.55% for the nine months ended September 30, 2012, partially offset by a decrease of $25.0 million or 2.1% in the average balance of interest earning assets to $1.146 billion for the nine months ended September 30, 2013 from $1.171 billion for the nine months ended September 30, 2012. The average balance of interest bearing liabilities decreased by $42.4 million or 4.2% to $971.6 million for the nine months ended September 30, 2013 from $1.014 billion for the nine months ended September 30, 2012, while the average cost of interest bearing liabilities decreased to 1.09% for the nine months ended September 30, 2013 from 1.21% for the nine months ended September 30, 2012. As a consequence of the aforementioned, our net interest margin increased to 4.02% for the nine months ended September 30, 2013 from 3.51% for the nine months ended September 30, 2012. The increase in the average yield of interest earning assets and the decrease in the average cost of interest bearing liabilities represents management’s efforts to competitively price certain products to maximize profitability. The decrease in the average balance of both interest earning assets and interest bearing liabilities represents a pre-planned minor deleveraging of the balance sheet.

Donald Mindiak, CEO commented, “We are encouraged by the results of operations and the accompanying quantitative measurements that have been positively impacted by the successful implementation of several initiatives executed during 2012. Average net loan balances increased by $110.4 million or 12.9% to $967.5 million at September 30, 2013 from $857.1 million at September 30, 2012. As a result of this increase in net loans, interest income on loans increased by $4.2 million or 11.9% to $39.6 million for the nine months ended September 30, 2013 from $35.4 million for the nine months ended September 30, 2012. This increase in interest income coupled with a decrease of $1.2 million or 13.5% in interest expense over the comparative nine month periods ended September 30, 2013 and September 30, 2012, respectively, resulted in an increase in our net interest spread to 3.86% at September 30, 2013 as compared to 3.34% at September 30, 2012 and an increase in our net interest margin to 4.02% at September 30, 2013 as compared to 3.51% at September 30, 2012. Further, cost containment efforts have proven successful as non-interest expense was reduced by $2.6 million or 10.1% to $22.8 million for the nine months ended September 30, 2013 as compared to $25.4 million for the nine months ended September 30, 2012.”

Mr. Mindiak continued, “The Board of Directors unanimously declared a quarterly cash dividend of $0.12/common share payable on November 15, 2013 with a record date of November 5, 2013, consistent with our prior quarter’s amount. This marks the 27th consecutive quarter of paying a cash dividend to our common shareholders and the 20th consecutive quarter that we have maintained that dividend at $0.12/share, despite the increasingly complex and challenging regulatory and economic environment. As we continue to grow our balance sheet and franchise organically, we will only do so as prudent capital management and conservatively underwritten opportunities permit.”

BCB Community Bank presently operates ten full service offices in Bayonne, Hoboken, Jersey City, Monroe Township and South Orange and an office of the Bank of Woodbridge, a division of BCB Community Bank, in Woodbridge, New Jersey.

Questions regarding the content of this release should be directed to either Donald Mindiak, Chief Executive Officer or Thomas Coughlin, President & Chief Operating 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 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 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.

BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(In Thousands, except share and per share data, Unaudited)
 
  September 30,   December 31,

2013

2012

 

ASSETS

Cash and amounts due from depository institutions $ 9,840 $ 6,242
Interest-earning deposits   22,349     27,905  
Total cash and cash equivalents   32,189     34,147  
 
Interest-earning time deposits 986 986
Securities available for sale 789 1,240

Securities held to maturity, fair value $120,980 and $171,603 respectively

118,947 164,648
Loans held for sale 1,370 1,602

Loans receivable, net of allowance for loan losses of $13,881 and $12,363 respectively

987,436 922,301
Premises and equipment 14,118 13,568
Federal Home Loan Bank of New York stock 7,030 7,698
Interest receivable 4,049 4,063
Other real estate owned 2,742 3,274
Deferred income taxes 9,792 10,053
Other assets   3,527     7,778  
Total Assets $ 1,182,975   $ 1,171,358  
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

LIABILITIES

Non-interest bearing deposits $ 103,642 $ 85,950
Interest bearing deposits   864,325     854,836  
Total deposits 967,967 940,786
Short-term Borrowings - 17,000
Long-term Debt 114,124 114,124
Other Liabilities   6,951     7,867  
Total Liabilities   1,089,042     1,079,777  
 

STOCKHOLDERS' EQUITY

Preferred stock: $0.01 par value, 10,000,000 shares authorized, issued and outstanding 865 shares of Series A 6% noncumulative perpetual preferred stock

- -
Additional paid-in capital preferred stock 8,570 8,570

Common stock; $0.064 stated value; 20,000,000 shares authorized, 10,860,616 and 10,841,079 shares, respectively, issued; 8,332,846 shares and 8,496,508 shares, respectively outstanding

694 694
Additional paid-in capital common stock 92,051 91,846
Treasury stock, at cost, 2,527,770 and 2,344,571 shares, respectively (29,072 ) (27,177 )
Retained earnings 22,568 18,883
Accumulated other comprehensive loss, net of taxes   (878 )   (1,235 )
Total Stockholders' equity   93,933     91,581  
 
Total Liabilities and Stockholders' equity $ 1,182,975   $ 1,171,358  
 
BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In Thousands, except for per share amounts, Unaudited)
 
  Three Months Ended   Nine Months Ended

September 30,

September 30,
2013

 

2012

2013

  2012
 
Interest income:
Loans $

13,341

 

$ 11,629 $ 39,580 $ 35,358
Investments, taxable 872 1,441 2,861 4,493
Investments, non-taxable 12 12 37 37
Other interest-earning assets   14     26     38     91  
Total interest income   14,239     13,108     42,516     39,979  
 
Interest expense:
Deposits:
Demand 114 106 324 460
Savings and club 93 88 270 390
Certificates of deposit   1,192     1,410     3,633     4,521  
1,399 1,604 4,227 5,371
 
Borrowed money   1,250     1,249     3,714     3,808  
 
Total interest expense   2,649     2,853     7,941     9,179  
 
Net interest income 11,590 10,255 34,575 30,800
Provision for loan losses   450     1,600     2,250     3,400  
 
Net interest income after provision for loan losses   11,140     8,655     32,325     27,400  
 
Non-interest income:
Fees and service charges 444 368 1,347 1,466
Gain on sales of loans originated for sale 263 288 609 957
Gain on sale of loans acquired - - - 286
Loss on bulk sale of impaired loans held in portfolio - (3,462 ) - (10,804 )
Gain on sale of securities held to maturity 18 31 378 224
Other   38     36     94     102  
Total non-interest income   763     (2,739 )   2,428     (7,769 )
 
Non-interest expense:
Salaries and employee benefits 4,024 3,780 11,210 11,603
Occupancy expense of premises 933 855 2,612 2,587
Equipment 1,397 1,147 3,845 3,746
Professional fees 693 1,344 1,720 2,370
Director fees 168 168 504 560
Regulatory assessments 286 294 829 900
Advertising 149 125 429 371
Other real estate owned 99 443 (17 ) 705
Other   584     845     1,693     2,540  
Total non-interest expense   8,333     9,001     22,825     25,382  
 
Income (loss) before income tax provision 3,570 (3,085 ) 11,928 (5,751 )
Income tax provision (benefit)   1,428     (1,740 )   4,823     (2,632 )
 
Net Income (loss) $ 2,142 $ (1,345 ) $ 7,105 $ (3,119 )
Preferred stock dividends $ 130   $ -   $ 390   $ -  
Net Income (loss) available to common stockholders $ 2,012   $ (1,345 ) $ 6,715   $ (3,119 )
 
 
Net Income (loss) per common share-basic and diluted
Basic $ 0.24   $ (0.15 ) $ 0.80   $ (0.34 )
Diluted $ 0.24   $ (0.15 ) $ 0.80   $ (0.34 )
 
Weighted average number of common shares outstanding
Basic   8,365     8,685     8,419     9,088  
Diluted   8,368     8,685     8,423     9,088  

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Morningstar - 2013/10/31 - BCB Bancorp, Inc., Announces an Increase in Earnings for the Three and Nine Months Ended September 30, 2013
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