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Section 1: 10-Q (10-Q)

10Q 20180331_Taxonomy2017

 



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q 

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June  30, 2018

Or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 0-50275



BCB Bancorp, Inc.

(Exact name of registrant as specified in its charter)



 

New Jersey

 

26-0065262

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

I.D. No.)

 

 

104-110 Avenue C Bayonne, New Jersey

 

07002

(Address of principal executive offices)

 

(Zip Code)

(201) 823-0700

(Registrant’s telephone number, including area code)

 



Not Applicable

(Former name, former address and former fiscal year if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes       No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).       Yes       No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “accelerated filer, larger accelerated filer, non-accelerated filer, smaller reporting company, or emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

 

 

Large Accelerated Filer

 

  

Accelerated Filer

 

 

 

 

 

 

Non-Accelerated Filer

 

 (Do not check if a smaller reporting company)

  

Smaller Reporting Company   

 

 



 

 

 

 

 

 



 

 

 

Emerging Growth Company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act).      Yes      No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of August 1st, 2018, BCB Bancorp, Inc., had 15,782,713 shares of common stock, no par value, outstanding.



 

 

 


 

BCB BANCORP INC. AND SUBSIDIARIES

INDEX

 



 

 

 

 

 

 

 

 

 

 

  

Page

 

PART I. CONSOLIDATED FINANCIAL INFORMATION

  

 

 

 

 

 

Item 1. Consolidated Financial Statements

  

 

 

 

 

 

Consolidated Statements of as of June 30, 2018 (unaudited) and December 31, 2017 (unaudited)

  

 

1

  

 

 

Consolidated Statements of Income for the three and six months ended June 30, 2018 and 2017 (unaudited)

  

 

2

  



 

 

 

 

Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2018 and 2017 (unaudited)

 

 

3

 

 

 

Consolidated Statement of Changes in Stockholders’ Equity for the six months ended June 30, 2018 and 2017 (unaudited)

  

 

4

  



Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017 (unaudited)

  

 

5

  



Notes to Unaudited Consolidated Financial Statements

  

 

  

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

 

39 

 

 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

  

 

46 

 

 

 

Item 4. Controls and Procedures

  

 

47

  

 

 

PART II. OTHER INFORMATION

  

 

47

 

 

 

Item 1. Legal Proceedings

  

 

47 

  

 

 

Item 1A. Risk Factors

  

 

48

  

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

  

 

48

  

 

 

Item 3. Defaults Upon Senior Securities

  

 

48

  

 

 

Item 4. Mine Safety Disclosures

  

 

48

  

 

 

Item 5. Other Information

  

 

48

  

 

 

Item 6. Exhibits

 

 

48 

 







 

 

 


 

PART I. CONSOLIDATED FINANCIAL INFORMATION

ITEM I. CONSOLIDATED FINANCIAL STATEMENTS

BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Financial Condition

(In Thousands, Except Share and Per Share Data, Unaudited)



 



 

 

 

 

 



 

 

 

 

 



June 30,

 

December 31,



2018

 

2017



 

 

 

 

 

ASSETS

 

 

 

 

 

Cash and amounts due from depository institutions

$

23,125 

 

$

16,460 

Interest-earning deposits

 

157,320 

 

 

107,775 

  Total cash and cash equivalents

 

180,445 

 

 

124,235 



 

 

 

 

 

Interest-earning time deposits

 

980 

 

 

980 

Debt securities available for sale

 

127,291 

 

 

114,295 

Equity investments

 

8,134 

 

 

8,294 

Loans held for sale

 

1,405 

 

 

1,295 

Loans receivable, net of allowance for loan losses

 

 

 

 

 

  of $20,640 and $17,375 respectively

 

2,119,829 

 

 

1,643,677 

Federal Home Loan Bank of New York stock, at cost

 

16,744 

 

 

10,211 

Premises and equipment, net

 

21,055 

 

 

18,768 

Accrued interest receivable

 

7,563 

 

 

6,153 

Other real estate owned

 

1,178 

 

 

532 

Deferred income taxes

 

11,451 

 

 

5,144 

Goodwill

 

5,281 

 

 

 -

Other assets

 

15,208 

 

 

9,253 

   Total Assets

$

2,516,564 

 

$

1,942,837 



 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 



 

 

 

 

 

LIABILITIES

 

 

 

 

 

Non-interest bearing deposits

$

229,292 

 

$

201,043 

Interest bearing deposits

 

1,755,584 

 

 

1,368,327 

 Total deposits

 

1,984,876 

 

 

1,569,370 

FHLB advances

 

320,005 

 

 

185,000 

Subordinated debentures

 

4,124 

 

 

4,124 

Other liabilities and accrued interest payable

 

13,483 

 

 

7,889 

   Total Liabilities

 

2,322,488 

 

 

1,766,383 



 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

Preferred stock: $0.01 par value, 10,000,000 shares authorized;

 

 

 

 

 

   issued and outstanding 7,807 shares of series C 6%, series D 4.5%, (liquidation value $10,000 per share)

 

 

 

 

 

  and series F 6% (liquidation value $1,000 per share) noncumulative perpetual preferred stock

 

 

 

 

 

  at June 30, 2018 and 1,342 shares of series C 6% and series D 4.5% (liquidation value $10,000 per share)

 

 

 

 

 

   noncumulative perpetual preferred stock at December 31, 2017

 

 -

 

 

 -

Additional paid-in capital preferred stock

 

19,706 

 

 

13,241 

Common stock: no par value; 20,000,000 shares authorized; issued 18,313,476 and 17,572,942

 

 

 

 

 

 at June 30, 2018 and December 31, 2017, respectively, outstanding 15,782,713 shares and

 

 

 

 

 

   15,042,179 shares, at June 30, 2018 and December 31, 2017, respectively

 

 -

 

 

 -

Additional paid-in capital common stock

 

175,716 

 

 

164,230 

Retained earnings

 

33,570 

 

 

31,241 

Accumulated other comprehensive (loss)

 

(5,800)

 

 

(3,142)

Treasury stock, at cost, 2,530,763 shares at June 30, 2018 and December 31, 2017

 

(29,116)

 

 

(29,116)

   Total Stockholders' Equity

 

194,076 

 

 

176,454 



 

 

 

 

 

    Total Liabilities and Stockholders' Equity

$

2,516,564 

 

$

1,942,837 



 

 

 

 

 



See accompanying notes to unaudited consolidated financial statements.



1

 


 



BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Income

(In Thousands, Except for Per Share Amounts, Unaudited)





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended June 30,

 

Six Months Ended June 30,



 

2018

 

 

2017

 

 

2018

 

 

2017



 

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 Loans, including fees

$

24,048 

 

$

18,026 

 

$

43,569 

 

$

35,568 

 Mortgage-backed securities

 

837 

 

 

603 

 

 

1,536 

 

 

1,131 

 Municipal bonds and other debt

 

196 

 

 

159 

 

 

300 

 

 

264 

 FHLB stock and other interest earning assets

 

615 

 

 

281 

 

 

1,233 

 

 

561 

    Total interest income

 

25,696 

 

 

19,069 

 

 

46,638 

 

 

37,524 



 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 Deposits:

 

 

 

 

 

 

 

 

 

 

 

    Demand

 

975 

 

 

677 

 

 

1,772 

 

 

1,350 

    Savings and club

 

105 

 

 

100 

 

 

202 

 

 

199 

    Certificates of deposit

 

3,405 

 

 

2,142 

 

 

6,135 

 

 

4,153 



 

4,485 

 

 

2,919 

 

 

8,109 

 

 

5,702 

    Borrowings

 

1,221 

 

 

1,087 

 

 

2,099 

 

 

2,154 

      Total interest expense

 

5,706 

 

 

4,006 

 

 

10,208 

 

 

7,856 



 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

19,990 

 

 

15,063 

 

 

36,430 

 

 

29,668 

Provision for loan losses

 

2,060 

 

 

776 

 

 

3,402 

 

 

1,274 



 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

17,930 

 

 

14,287 

 

 

33,028 

 

 

28,394 



 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

  Fees and service charges

 

971 

 

 

838 

 

 

1,681 

 

 

1,634 

  Gain on sales of loans

 

576 

 

 

733 

 

 

1,159 

 

 

1,071 

  Loss on bulk sale of impaired loans held in portfolio

 

 -

 

 

 -

 

 

(24)

 

 

 -

 (Loss) gain on sales of other real estate owned

 

(10)

 

 

197 

 

 

(10)

 

 

1,348 

  Unrealized loss on equity investments

 

(33)

 

 

 -

 

 

(160)

 

 

 -

  Other

 

59 

 

 

254 

 

 

2,303 

 

 

282 

     Total non-interest income

 

1,563 

 

 

2,022 

 

 

4,949 

 

 

4,335 



 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

  Salaries and employee benefits

 

7,125 

 

 

5,878 

 

 

13,392 

 

 

11,968 

  Occupancy and equipment

 

2,476 

 

 

1,989 

 

 

4,538 

 

 

4,147 

  Data processing and service fees

 

828 

 

 

678 

 

 

1,557 

 

 

1,331 

  Professional fees

 

533 

 

 

1,383 

 

 

1,038 

 

 

1,746 

  Director fees

 

201 

 

 

198 

 

 

402 

 

 

378 

  Regulatory assessments

 

290 

 

 

331 

 

 

529 

 

 

692 

  Advertising and promotional

 

100 

 

 

115 

 

 

185 

 

 

258 

  Other real estate owned, net

 

160 

 

 

13 

 

 

191 

 

 

55 

  Merger related costs

 

2,039 

 

 

 -

 

 

2,184 

 

 

 -

  Other

 

2,228 

 

 

1,563 

 

 

3,975 

 

 

3,135 

     Total non-interest expense

 

15,980 

 

 

12,148 

 

 

27,991 

 

 

23,710 



 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision

 

3,513 

 

 

4,161 

 

 

9,986 

 

 

9,019 

Income tax provision

 

1,200 

 

 

1,648 

 

 

3,041 

 

 

3,593 



 

 

 

 

 

 

 

 

 

 

 

Net Income

$

2,313 

 

$

2,513 

 

$

6,945 

 

$

5,426 

Preferred stock dividends

 

262 

 

 

165 

 

 

428 

 

 

283 

Net Income available to common stockholders

$

2,051 

 

$

2,348 

 

$

6,517 

 

$

5,143 



 

 

 

 

 

 

 

 

 

 

 

Net Income per common share-basic and diluted

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.13 

 

$

0.21 

 

$

0.43 

 

$

0.46 

Diluted

$

0.13 

 

$

0.21 

 

$

0.42 

 

$

0.45 



 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

Basic

 

15,610 

 

 

11,295 

 

 

15,329 

 

 

11,287 

Diluted

 

15,748 

 

 

11,405 

 

 

15,465 

 

 

11,383 

See accompanying notes to unaudited consolidated financial statements.

 

2

 


 

BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(In Thousands, Unaudited)







 

 

 

 

 

 

 

 

 

 

 



Three Months Ended June 30,

 

Six Months Ended June 30,



2018

 

2017

 

2018

 

2017



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Net Income

$

2,313 

 

$

2,513 

 

$

6,945 

 

$

5,426 

Other comprehensive (loss) income, net of tax:

 

 

 

 

 

 

 

 

 

 

 

Unrealized (losses) gains on available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding (losses) gains arising during the period (a)

 

(821)

 

 

524 

 

 

(2,532)

 

 

1,383 

Other comprehensive (loss) income

 

(821)

 

 

524 

 

 

(2,532)

 

 

1,383 

Comprehensive income

$

1,492 

 

$

3,037 

 

$

4,413 

 

$

6,809 





(a)

Represents unrealized (losses) gains of (964,000),  885,000,  (3,344,000), and 2,338,000,  respectively, less deferred taxes of (143,000),  361,000,  (812,000) and 955,000, respectively.



See accompanying notes to unaudited consolidated financial statements.





 

3

 


 



BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Equity

(In Thousands, Except Share and Per Share Data, Unaudited) 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Preferred Stock

 

Common Stock

 

Additional             Paid-In Capital

 

Retained Earnings

 

Treasury Stock

 

Accumulated Other Comprehensive Loss

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

$

 -

 

$

 -

 

$

177,471 

 

$

31,241 

 

$

(29,116)

 

$

(3,142)

 

$

176,454 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of Stock Options (200 shares)

 

 -

 

 

 -

 

 

 

 

 -

 

 

 -

 

 

 -

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 -

 

 

 -

 

 

164 

 

 

 -

 

 

 -

 

 

 -

 

 

164 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends payable on Series C 6%, Series D 4.5%, and Series F 6% noncumulative perpetual preferred stock

 

 -

 

 

 -

 

 

 -

 

 

(428)

 

 

 -

 

 

 -

 

 

(428)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends on common stock ($0.14 per share declared)

 

 -

 

 

 -

 

 

 -

 

 

(4,151)

 

 

 -

 

 

 -

 

 

(4,151)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Reinvestment Plan

 

 -

 

 

 -

 

 

163 

 

 

(163)

 

 

 -

 

 

 -

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock Purchase Plan

 

 -

 

 

 -

 

 

217 

 

 

 -

 

 

 -

 

 

 -

 

 

217 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 -

 

 

 -

 

 

 -

 

 

6,945 

 

 

 -

 

 

 -

 

 

6,945 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification of unrealized gains on AFS equity securities

 

 -

 

 

 -

 

 

 -

 

 

126 

 

 

 -

 

 

(126)

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

(2,532)

 

 

(2,532)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of IA Bancorp

 

 -

 

 

 -

 

 

17,405 

 

 

 -

 

 

 -

 

 

 -

 

 

17,405 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2018

$

 -

 

$

 -

 

$

195,422 

 

$

33,570 

 

$

(29,116)

 

$

(5,800)

 

$

194,076 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Preferred Stock

 

Common Stock

 

Additional             Paid-In Capital

 

Retained Earnings

 

Treasury Stock

 

Accumulated Other Comprehensive Income (Loss)

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2016

$

 -

 

$

 -

 

$

135,881 

 

$

28,159 

 

$

(29,103)

 

$

(3,856)

 

$

131,081 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemption of Series A and B Preferred Stock

 

 -

 

 

 -

 

 

(11,720)

 

 

 -

 

 

 -

 

 

 -

 

 

(11,720)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of Series D Preferred Stock

 

 -

 

 

 -

 

 

9,497 

 

 

 -

 

 

 -

 

 

 -

 

 

9,497 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of Stock Options (200 shares)

 

 -

 

 

 -

 

 

 

 

 -

 

 

 -

 

 

 -

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 -

 

 

 -

 

 

78 

 

 

 -

 

 

 -

 

 

 -

 

 

78 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury stock purchases

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

(8)

 

 

 

 

 

(8)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends payable on Series C 6% and Series D 4.5% noncumulative perpetual preferred stock

 

 -

 

 

 -

 

 

 -

 

 

(283)

 

 

 -

 

 

 -

 

 

(283)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends on common stock ($0.14 per share declared)

 

 -

 

 

 -

 

 

 -

 

 

(3,012)

 

 

 -

 

 

 -

 

 

(3,012)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Reinvestment Plan

 

 -

 

 

 -

 

 

146 

 

 

(146)

 

 

 -

 

 

 -

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock Purchase Plan

 

 -

 

 

 -

 

 

337 

 

 

 -

 

 

 -

 

 

 -

 

 

337 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 -

 

 

 -

 

 

 -

 

 

5,426 

 

 

 -

 

 

 -

 

 

5,426 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

1,383 

 

 

1,383 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2017

$

 -

 

$

 -

 

$

134,221 

 

$

30,144 

 

$

(29,111)

 

$

(2,473)

 

$

132,781 

See accompanying notes to unaudited consolidated financial statements.

4

 


 



BCB BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In Thousands, Unaudited)





 

 

 

 

 



Six Months Ended June 30,



2018

 

2017

Cash Flows from Operating Activities :

 

 

 

 

 

  Net Income

$

6,945 

 

$

5,426 

  Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

        Depreciation of premises and equipment

 

1,284 

 

 

1,326 

        Amortization and accretion, net

 

(943)

 

 

(872)

        Provision for loan losses

 

3,402 

 

 

1,274 

        Deferred income tax (benefit)

 

(284)

 

 

584 

        Loans originated for sale

 

(13,230)

 

 

(13,257)

        Proceeds from sales of loans

 

14,279 

 

 

17,945 

        Gain on sales of loans originated for sale

 

(1,159)

 

 

(1,071)

        (Loss) gains on sales of other real estate owned

 

10 

 

 

(1,348)

        Fair value adjustment of OREO

 

101 

 

 

 -

        Loss on equity investments

 

160 

 

 

 -

        Loss on bulk sale of impaired loans held in portfolio