BCB Bancorp, Inc., Announces Increase in Annual Earnings

Business Wire

BAYONNE, N.J.--(BUSINESS WIRE)--

BCB Bancorp, Inc., Bayonne, NJ (NASDAQ: BCBP – News) announced 2013 year end net income of $9.4 million for the year ended December 31, 2013 as compared to a loss of $2.1million for the year ended December 31, 2012. Basic and diluted earnings per share were $1.06 for the year ended December 31, 2013 compared with a $(0.23) loss per share for the year ended December 31, 2012. The weighted average number of common shares outstanding for the year ended December 31, 2013 for basic and diluted earnings per share calculations was approximately 8,397,000 and 8,402,000, respectively. The weighted average number of common shares outstanding for the year ended December 31, 2012 for basic and diluted earnings per share calculations was approximately 8,943,000 and 8,943,000, respectively.

Total assets increased by $36.6 million or 3.1% to $1.208 billion at December 31, 2013 from $1.171 billion at December 31, 2012. Total cash and cash equivalents decreased by $4.3 million or 12.6% to $29.8 million at December 31, 2013 from $34.1 million at December 31, 2012. Investment securities classified as held-to-maturity decreased by $50.4 million or 30.6% to $114.2 million at December 31, 2013 from $164.6 million at December 31, 2012. Loans receivable, net increased by $98.0 million or 10.6% to $1.02 billion at December 31, 2013 from $922.3 million at December 31, 2012. Deposits increased by $27.9 million or 3.0% to $968.7 million at December 31, 2013 from $940.8 million at December 31, 2012. Short-term borrowings increased by $1.0 million or 5.9% to $18.0 million at December 31, 2013 compared with $17.0 million at December 31, 2012. Long-term borrowings remained constant at $114.1 million at December 31, 2013 and 2012, respectively. Stockholders’ equity increased by $8.5 million or 9.3% to $100.1 million at December 31, 2013 from $91.6 million at December 31, 2012.

Net income was $9.4 million for the year ended December 31, 2013 compared with a net loss of $2.1 million for year ended December 31, 2012. The loss sustained in the fiscal year ended December 31, 2012 resulted primarily from the sale of approximately $25.9 million in non-performing loans during the second and third quarter of 2012. These sales resulted in a pre-tax loss of $10.8 million. The primary reason for this transaction was the elimination of carrying and legacy costs associated with these non-interest earning assets. Additionally, the return to net income was due to increases in net interest income and total non-interest income along with decreases in total non-interest expense and provision for loan losses, partially offset by an increase in income tax provision.

Net interest income increased by $5.1 million or 12.2% to $46.8 million for the year ended December 31, 2013 from $41.7 million for the year ended December 31, 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 4.97% for the year ended December 31, 2013 from 4.63% for the year ended December 31, 2012, partially offset by a slight decrease in the average balance of interest earning assets of $4.6 million or 0.4% to $1.153 billion for the year ended December 31, 2013 from $1.158 billion for the year ended December 31, 2012. The increased yield on assets was the result of an improved asset mix which saw increased loan balances and decreased balances of investment securities and interest-earning cash. The average balance of interest bearing liabilities decreased by $30.0 million or 3.0% to $974.7 million for the year ended December 31, 2013 from $1.004 billion for the year ended December 31, 2012, while the average cost of interest bearing liabilities decreased by ten basis points to 1.09% for the year ended December 31, 2013 from 1.19% for the year ended December 31, 2012. As a consequence of the aforementioned, our net interest margin increased by forty-six basis points to 4.06% for the year ended December 31, 2013 from 3.60% for the year ended December 31, 2012.

Total non-interest income was $3.4 million for the year ended December 31, 2013 compared with a loss of $7.2 million for the year ended December 31, 2012. Total non-interest income during 2013 benefitted primarily from a decrease of $10.3 million in loss on bulk sale of impaired loss held in portfolio to a loss of $474,000 for the year ended December 31, 2013 from a loss of $10.8 million for the year ended December 31, 2012.

Total non-interest expense decreased by $2.5 million or 7.4% to $31.4 million for the year ended December 31, 2013 from $33.9 million for the year ended December 31, 2012. Expense reductions occurred in occupancy expense, professional fees, director fees, regulatory assessments, OREO expense and other non-interest expense, partially offset by increases in salary and employee benefits, equipment, and advertising.

Donald Mindiak, Chief Executive Officer commented, “Our earnings and earnings per share were both positively impacted as a result of the successful implementation of several initiatives executed during 2012. An asset re-allocation initiative coupled with the sale of a significant portion of our non-performing loan portfolio resulted in the redeployment of the cash proceeds into yielding instruments. Net loan balances increased by $98.0 million or 10.6% to $1.02 billion at December 31, 2013 as compared to $922.3 million at December 31, 2012. As a result of this increase in net loans, interest income on loans increased by $5.7 million or 11.9% to $53.5 million for the year ended December 31, 2013 from $47.8 million for the year ended December 31, 2012. As a result of the aforementioned, we were able to realize an increase in our net interest spread to 3.89% at December 31, 2013 as compared to 3.45% at December 31, 2012, and an increase in our net interest margin to 4.06% at December 31, 2013 as compared to 3.60% at December 31, 2012. Additionally, cost containment efforts in several areas such as occupancy, professional fees, director fees, regulatory assessments, OREO expense and other non-interest expense provided a positive impact in reducing total non-interest expense by approximately $2.5 million or 7.4% to $31.4 million for the year ended December 31, 2013 from $33.9 million for the year ended December 31, 2012.”

“Efforts to raise capital in both 2012 and 2013 proved successful as a total of $12.6 million in additional capital was raised as a way to provide the Company the ability to continue to grow and strengthen our balance sheet and explore initiatives which may have the capacity to increase franchise and shareholder value.”

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., (the “Company”) 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)
                       
December 31, December 31,

2013

2012

 

ASSETS

Cash and amounts due from depository institutions $ 10,847 $ 6,242
Interest-earning deposits   18,997   27,905
Total cash and cash equivalents   29,844   34,147
 
Interest-earning time deposits 990 986
Securities available for sale 1,104 1,240
Securities held to maturity, fair value $115,158 and $171,603,
respectively 114,216 164,648
Loans held for sale 1,663 1,602
Loans receivable, net of allowance for loan losses of $14,342 and
$12,363, respectively 1,020,344 922,301
Federal Home Loan Bank of New York stock, at cost 7,840 7,698
Premises and equipment, net 13,853 13,568
Interest receivable 4,157 4,063
Other real estate owned 2,227 3,274
Deferred income taxes 9,942 10,053
Other assets   1,779   7,778
Total Assets $ 1,207,959 $ 1,171,358
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

LIABILITIES

Non-interest bearing deposits $ 107,613 $ 85,950
Interest bearing deposits   861,057   854,836
Total deposits 968,670 940,786
Short-term Borrowings 18,000 17,000
Long-term Debt 114,124 114,124
Other Liabilities   7,105   7,867
Total Liabilities   1,107,899   1,079,777
 

STOCKHOLDERS' EQUITY

Preferred stock: $0.01 par value, 10,000,000 shares authorized,
issued and outstanding 1,266 shares of Series A and B 6% noncumulative perpetual
preferred stock (liquidation value $10,000 per share) - -
Additional paid-in capital preferred stock 12,556 8,570
Common stock; $0.064 stated value; 20,000,000 shares authorized,
issued 10,861,129 and 10,841,079 shares at December 31, 2013 and 2012;
outstanding 8,331,750 shares and 8,496,508 shares, respectively 694 694
Additional paid-in capital common stock 92,064 91,846
Treasury stock, at cost, 2,529,379 and 2,344,571 shares, respectively (29,093) (27,177)
Retained earnings 23,710 18,883
Accumulated other comprehensive income (loss)   129   (1,235)
Total Stockholders' equity   100,060   91,581
 
Total Liabilities and Stockholders' equity $ 1,207,959 $ 1,171,358
 
 
BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Income (loss)
(In Thousands, except for per share amounts, Unaudited)
                           
Year Ended
December 31,
2013       2012       2011
 
Interest income:
Loans $ 53,521 $ 47,756 $ 45,023
Investments, taxable 3,737 5,730 7,720
Investments, non-taxable 49 49 49
Other interest-earning assets   52     112     87  
Total interest income   57,359     53,647     52,879  
 
Interest expense:
Deposits:
Demand 444 564 849
Savings and club 363 477 1,020
Certificates of deposit   4,795     5,849     6,421  
5,602 6,890 8,290
 
Borrowed money   4,978     5,057     5,007  
 
Total interest expense   10,580     11,947     13,297  
 
Net interest income 46,779 41,700 39,582
Provision for loan losses   2,750     4,900     4,100  
 
Net interest income, after provision for loan losses   44,029     36,800     35,482  
 
Non-interest income (loss):
Fees and service charges 1,822 1,595 846
Gain on sales of loans originated for sale 1,529 1,220 887
Gain on sale of loans acquired - 286 -
Loss on bulk sale of impaired loans held in portfolio (474 ) (10,804 ) -
Loss on property held for sale - - (124 )
Loss on write-down of fixed assets - - (592 )
Gain on sale of securities held to maturity 378 349 18
Gain on bargain purchase - - 1,162
Other   120     129     251  
Total non-interest income (loss)   3,375     (7,225 )   2,448  
 
Non-interest expense:
Salaries and employee benefits 15,691 15,017 12,680
Occupancy expense of premises 3,516 3,558 3,039
Equipment 5,207 4,907 4,301
Professional fees 2,250 2,490 1,287
Director fees 672 728 689
Regulatory assessments 1,096 1,172 1,181
Advertising 583 484 399
Merger related expenses - - 538
Other real estate owned 46 1,936 1,204
Other   2,376     3,597     3,188  
Total non-interest expense   31,437     33,889     28,506  
 
Income (loss) before income tax provision 15,967 (4,314 ) 9,424
Income tax provision (benefit)   6,551     (2,252 )   3,373  
 
Net Income (loss) $ 9,416 $ (2,062 ) $ 6,051
Preferred stock dividends   559     -     -  
Net Income (loss) available to common stockholders $ 8,857   $ (2,062 ) $ 6,051  
 
 
Net Income (loss) per common share-basic and diluted
Basic $ 1.06   $ (0.23 ) $ 0.64  
Diluted $ 1.06   $ (0.23 ) $ 0.64  
 
Weighted average number of common shares outstanding
Basic   8,397     8,943     9,417  
Diluted   8,402     8,943     9,433  

Contact:
BCB Bancorp, Inc.
Donald Mindiak, 201-823-0700
Chief Executive Officer
or
Thomas Coughlin, 201-823-0700
President & Chief Operating Officer
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