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Section 1: 8-K (BCB BANCORP, INC. FORM 8-K)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 31, 2019

BCB BANCORP, INC.
(Exact Name of Registrant as Specified in its Charter)


New Jersey
 
0-50275
 
26-0065262
(State or Other Jurisdiction
of Incorporation)
 
(Commission File No.)
 
(I.R.S. Employer
Identification No.)

104-110 Avenue C, Bayonne, New Jersey
 
07002
(Address of Principal Executive Offices)
 
(Zip Code)

Registrant’s telephone number, including area code: (201) 823-0700

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[  ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
   
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
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. 

Item 2.02 Results of Operations and Financial Condition

On January 31, 2019, BCB Bancorp, Inc. (the “Company”) issued a press release reporting its financial results at and for the three months and the year ended December 31, 2018.

A copy of the press release is attached as Exhibit 99.1 to this report and is being furnished to the Securities and Exchange Commission and shall not be deemed filed for any purpose.

Item 9.01        Financial Statements and Exhibits


 
(a)

Financial statements of businesses acquired.  None.
     

 (b)
Pro forma financial information.  None.
     

 (c)
Shell company transactions: None.
     

 (d)
Exhibits.
     


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.


   
BCB BANCORP, INC.
 
 
DATE: February 1, 2019
By:
/s/ Thomas P. Keating
   
Thomas P. Keating
   
Senior Vice President and Chief Financial Officer

(Back To Top)

Section 2: EX-99.1 (PRESS RELEASE DATED JANUARY 31, 2019)






 
 
 Contact:   Thomas Coughlin,
President & CEO
Thomas Keating, CFO
(201) 823-0700

BCB Bancorp, Inc. Reports Record Earnings of $16.8 Million for the Year 2018


BAYONNE, N.J., January 31, 2019 -- BCB Bancorp, Inc. (the “Company”), Bayonne, NJ (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported record profits for 2018, fueled by positive operating leverage from the acquisition of IA Bancorp, Inc. (“IAB”) in the second quarter of 2018, lower federal income taxes and a strong net interest margin.  Net income for the full year 2018 increased by $6.8 million, or 67.9 percent, to $16.8 million, or $1.02 per basic share, compared to $10.0 million, or $0.76 per basic share, in 2017.  For the fourth quarter of 2018, net income increased to $5.2 million, or $0.31 per basic share, compared to $4.6 million, or $0.27 per basic share, in the preceding quarter.  In the fourth quarter of 2017, following the reevaluation of the Company’s net deferred tax asset by $2.2 million due to tax reforms enacted in 2017, net income was $1.3 million, or $0.08 per basic share.
“We generated record fourth quarter and full year 2018 financial results, highlighted by strong net interest income, a stable net interest margin and the successful integration of the IAB acquisition which we completed earlier this year,” stated Thomas Coughlin, President and Chief Executive Officer.  “The tax reform legislation enacted last year has provided us with a lower corporate tax rate, which will continue to benefit us as we grow our franchise.  We remain focused on looking for additional growth opportunities both within our existing footprint and surrounding markets.”
The IAB acquisition, which was completed during the second quarter of 2018, added approximately $215.8 million in assets, $178.4 million in deposits and $182.5 million in net loans.

2018 Financial Highlights
·
Net income was $16.8 million, or $1.02 per basic share, in 2018, compared to $10.0 million, or $0.76 per basic share, in 2017.
·
Earnings per diluted share increased to $1.01 in 2018 compared to $0.75 in 2017.
·
Net interest income, before the provision for loan losses, increased 25.5 percent to $77.7 million in 2018 compared to $61.9 million in 2017.
·
Net interest margin was 3.31 percent in 2018 compared to 3.49 percent in 2017.
·
Total assets increased 37.7 percent to $2.675 billion at December 31, 2018, compared to $1.943 billion a year earlier.
·
Net loans receivable increased 38.6 percent to $2.278 billion at December 31, 2018, compared to $1.644 billion a year earlier.
·
Allowance for loan loss as a percentage of non-accrual loans was 309.6 percent, as compared to 133.3 percent at December 31, 2017.
·
Issued $33.5 million of subordinated debt in July 2018 to support our growth and strengthen our capital position. For regulatory purposes, treated as Tier 1 capital for the Bank and Tier 2 capital for the Company.
·
Tangible book value was $11.00 at December 31, 2018.
·
Earlier this month, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.14 per share. The dividend will be payable February 22, 2019, to common shareholders of record on February 8, 2019.

Balance Sheet Review
Total assets increased by $731.9 million, or 37.7 percent, to $2.675 billion at December 31, 2018 from $1.943 billion at December 31, 2017. The increase in total assets included the acquisition of IAB, which added approximately $215.8 million in assets.

Loans receivable, net increased by $634.8 million, or 38.6 percent, to $2.278 billion at December 31, 2018 from $1.644 billion at December 31, 2017. The increase in loans over the prior year resulted from the acquisition of IAB, which added $182.5 million in loans as of the merger date, as well as strong organic growth.  Total increases for 2018, including loans acquired from IAB, included $437.1 million in commercial real estate and multi-family loans, $94.4 million in commercial business loans, $57.3 million in construction loans, $26.3 million in residential one-to-four family loans, and $25.2 million in home equity loans. The allowance for loan losses increased $5.0 million to $22.4 million, or 309.6 percent of non-accruing loans and 0.97 percent of gross loans, at December 31, 2018 as compared to an allowance for loan losses of $17.4 million, or 133.3 percent of non-accruing loans and 1.05 percent of gross loans, a year ago.
Total cash and cash equivalents increased by $71.0 million, or 57.2 percent, to $195.3 million at December 31, 2018 from $124.3 million at December 31, 2017 primarily due to the Company’s strategy to further strengthen liquidity and its deposit base.  Total investment securities increased by $4.4 million, or 3.6 percent, to $127.0 million at December 31, 2018 from $122.6 million at December 31, 2017, as the Company deployed excess cash to improve returns on interest-earning assets and liquidity.
Deposit liabilities increased by $611.4 million, or 39.0 percent, to $2.181 billion at December 31, 2018 from $1.569 billion at December 31, 2017. The increases in deposit liabilities related to the acquisition of IAB, which approximated $178.4 million in the balance of deposits added as of the merger date, as well as the continued maturation of the seven branches opened in 2016 as a result of our organic growth initiative. Total increases for 2018, including deposits acquired from IAB, included $439.2 million in certificates of deposit, including listing service and brokered deposits, $62.9 million in non-interest bearing deposit accounts, $73.9 million in money market checking accounts, $33.4 million in NOW deposit accounts, and $1.9 million in savings and club accounts. Listing service and brokered certificates of deposit, which were used as additional sources of deposit liquidity to fund loan growth, totaled $36.9 million and $175.5 million, respectively, at December 31, 2018.
Debt obligations increased by $93.3 million, or 49.3 percent, to $282.4 million at December 31, 2018 from $189.1 million a year ago. The year-over-year increases are the net result of the issuance of new FHLB advances and scheduled maturities of FHLB advances, and the issuance of $33.5 million of subordinated debentures in a private placement in July 2018. The increase in FHLB borrowings reflected the use of long-term advances to augment deposits as the Company’s funding source for originating loans and investing in investment securities. The weighted average interest rate of FHLB advances was 2.18 percent at December 31, 2018. The issuance of subordinated debt was to maintain adequate capital ratios for further growth.
Stockholders’ equity increased by $23.8 million, or 13.5 percent, to $200.2 million at December 31, 2018 from $176.4 million a year ago. The increase in stockholders’ equity was primarily attributable to an increase in additional paid-in capital of $17.4 million from common stock and preferred stock issued as part of the acquisition of IAB. Retained earnings increased by $7.2 million to $38.4 million at December 31, 2018 from $31.2 million at December 31, 2017. Accumulated other comprehensive loss increased $1.9 million to $5.1 million at December 31, 2018 from $3.2 million a year ago.

Fourth Quarter Income Statement Review
Net interest income increased by $4.5 million, or 27.2 percent, to $21.2 million for the fourth quarter of 2018 from $16.7 million for the fourth quarter of 2017. The increase in net interest income resulted primarily from an increase in the average balance of interest-earning assets of $749.0 million, or 40.1 percent, to $2.617 billion for the fourth quarter of 2018 from $1.868 billion for the fourth quarter a year ago. Net interest margin was 3.24 percent for the fourth quarter of 2018 compared to 3.56 percent for the fourth quarter a year ago. “The decrease in the net interest margin was the result of the rising rate environment, with the increase in the cost of funds outpacing the return on interest earning assets,” said Coughlin.
Total non-interest income decreased by $356,000, or 23.5 percent, to $1.2 million for the fourth quarter of 2018 from $1.5 million for the fourth quarter of 2017. The decrease in total non-interest income was primarily related to the recording of $380,000 of unrealized losses on equity investments in accordance with a new accounting standard which became effective at the beginning of 2018.

Fourth quarter non-interest expense increased by $1.9 million, or 15.4 percent, to $13.9 million for the fourth quarter of 2018 from $12.0 million for the fourth quarter of 2017. The increases in non-interest expense over the prior year are largely attributable to the inclusion of IAB costs since the merger in April 2018.

The income tax provision decreased by $2.1 million, or 46.1 percent, to $2.4 million for the third quarter of 2018 from $4.5 million for the fourth quarter of 2017.  The decrease in the income tax provision comes as a result of the lower tax provision as mandated by enactment of the Tax Cuts and Jobs Act of 2017, which lowered the federal corporate tax rate from 35% to 21% beginning in 2018. There was an additional provision of $2.2 million in the fourth quarter of 2017 to revalue the net deferred tax assets at the newly enacted tax rate. Partly offsetting the decrease from the prior year was higher taxable income for the fourth quarter of 2018 as compared to the fourth quarter of 2017.  The consolidated effective tax rate for the fourth quarter of 2018 was 31.5 percent compared to 76.9 percent for the fourth quarter of 2017.

Full Year 2018 Income Statement Review
Net interest income increased by $15.8 million, or 25.5 percent, to $77.7 million for the full year 2018 from $61.9 million for 2017. The increase in net interest income resulted primarily from an increase in the average balance of interest-earning assets of $572.1 million, or 32.3 percent, to $2.345 billion for 2018 from $1.773 billion for 2017. There was an increase in the average yield on interest-earning assets of eleven basis points to 4.48 percent for 2018 from 4.37 percent in 2017.
Net interest margin was 3.31 percent in 2018 compared to 3.49 percent in 2017. The decrease in the net interest margin was the result of the rising interest rate environment, with the increase in the cost of funds outpacing the return on interest earning assets for the short term.
Interest income on loans receivable increased by $24.5 million, or 33.4 percent, to $97.8 million for the year 2018 from $74.3 million in 2017. The increase was primarily attributable to an increase in the average balance of loans receivable of $468.8 million, or 29.5 percent, to $2.060 billion for the year 2018 from $1.591 billion for 2017, as well as an increase in the average yield on loans of 14 basis points to 4.75 percent for 2018 from 4.61 percent for 2017. Interest income on loans also included $1.7 million of accretion of purchase credit adjustments related to the acquisition of IAB for 2018, which added approximately 7 basis points to the average yield on interest earning assets.
Total interest expense increased by $11.7 million, or 74.8 percent, to $27.4 million for 2018 from $15.7 million for 2017. This increase resulted primarily from an increase in the average balance of interest-bearing liabilities of $474.4 million, or 32.0 percent, to $1.958 billion for the year 2018 from $1.484 billion for 2017, as well as an increase in the average rate on interest-bearing liabilities of 34 basis points to 1.40 percent for the year 2018 from 1.06 percent for 2017. Interest expense also included $471,000 of amortization of purchase credit fair value adjustments related to the acquisition of IAB for the year 2018, which added approximately two basis points to the average cost of funds on an annualized basis.  Interest expense, related to the issuance of subordinated debt in July 2018, totaled $917,000 for the year 2018, which added approximately five basis points to the average cost of funds.
Total non-interest income increased by $477,000, or 6.4 percent, to $8.0 million for the year 2018 from $7.5 million for 2017. The increase in total non-interest income was primarily related to an increase in other non-interest income of $2.1 million to $2.5 million for the year from $343,000 in 2017, which was primarily attributed to $2.0 million received from a legal settlement in the first quarter of 2018. The increase in total non-interest income was partly offset by a decrease in the gains on sale of OREO properties of $1.6 million, which primarily related to the gain on the sale of one property in 2017, and a loss on equity securities of $622,000 in accordance with a new accounting standard which became effective at the beginning of 2018.
Total non-interest expense increased by $9.2 million, or 19.6 percent, to $56.3 million for the year 2018 from $47.1 million in 2017. Merger-related costs increased by $1.6 million, to $2.4 million for the year, from $802,000 in 2017. The increases in non-interest expense over the prior year were largely attributable to the inclusion of IAB expenses since the merger in April 2018.

The income tax provision decreased by $2.7 million, or 26.9 percent, to $7.5 million for the year 2018 from $10.2 million in 2017. The decrease in the income tax provision comes as a result of the lower tax provision as mandated by enactment of the Tax Cuts and Jobs Act of 2017, which lowered the federal corporate tax rate from 35% to 21% beginning in 2018. There was an additional provision of $2.2 million in the fourth quarter of 2017 to revalue the net deferred tax assets at the newly enacted tax rate. Partly offsetting the decrease from the prior year was higher taxable income for 2018 as compared to 2017. The consolidated effective tax rate for the year 2018 was 30.9 percent compared to 50.6 percent in 2017.

Asset Quality
The fourth quarter provision for loan losses was $821,000, compared to $907,000 in the preceding quarter and $325,000 in the fourth quarter a year ago.  For the year, the provision for loan losses increased by $3.0 million, to $5.1 million compared to $2.1 million in 2017.
Non-accruing loans improved to $7.2 million, or 0.31 percent of gross loans at December 31, 2018, compared to $11.1 million, or 0.49 percent of gross loans at September 30, 2018, and $13.0 million, or 0.78 percent of gross loans, a year earlier. Non-accruing loans exclude $7.0 million of Purchased Credit-Impaired loans acquired through the merger with IAB.
Performing troubled debt restructured loans that were not included in nonaccrual loans at December 31, 2018, were $22.5 million, compared to $20.6 million at September 30, 2018 and $20.1 million at December 31, 2017. Borrowers who are in financial difficulty and who have been granted concessions that may include interest rate reductions, term extensions, or payment alterations are categorized as restructured loans.
The allowance for loan losses was $22.4 million, or 0.97 percent of gross loans at December 31, 2018, compared to $21.5 million, or 0.96 percent of gross loans at September 30, 2018, and $17.4 million, or 1.05 percent of gross loans a year ago.  The decline in allowance coverage was primarily driven by the addition of IAB acquired loans with no allowance for loan losses as these loans were recorded at fair value at the acquisition date. The Company’s outstanding credit mark recorded on acquired portfolios of $249.5 million totaled $6.6 million at December 31, 2018. The Company’s combined coverage of allowance for loan loss and credit mark on the acquired portfolios totaled $28.9 million, or 1.25% of the overall loan portfolio, at December 31, 2018.
As of December 31, 2018, the allowance for loan losses represented 309.6 percent of nonaccrual loans compared to 193.9 percent three months earlier, and 133.3 percent one year earlier.  Other real estate owned (OREO) totaled $1.3 million at December 31, 2018, compared to $1.2 million at September 30, 2018, and $532,000 at December 31, 2017.  Net charge-offs were $146,000 in 2018, compared to $1.9 million in 2017.
About BCB Bancorp, Inc.
Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has 28 branch offices in Bayonne, Carteret, Colonia, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lodi, Lyndhurst, Maplewood, Monroe Township, Parsippany, Plainsboro, Rutherford, South Orange, Union, and Woodbridge, New Jersey and three branches in Hicksville and Staten Island, New York.  The Bank provides business and individuals a wide range of loans, deposit products, and retail and commercial banking services.  For more information, please go to www.bcb.bank.
Forward-Looking Statements
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.

In addition to factors previously disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission (the "SEC") and those identified elsewhere in this document, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: difficulties and delays in integrating the Indus-American Bank business or fully realizing cost savings and other benefits of the Merger; business disruption following the Merger; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer acceptance of BCB products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and actions of governmental agencies and legislative and regulatory actions and reforms.
Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(In Thousands, Except Share and Per Share Data, Unaudited)

 
   
December 31, 2018
   
September 30, 2018
   
December 31, 2017
   
December 31, 2018 vs
September 30, 2018
 December 31, 2018 vs December 31, 2017 
                               
ASSETS
                           
Cash and amounts due from depository institutions
 
$
18,970
   
$
32,459
   
$
16,460
     
(41.6
%)
   
15.2
%
Interest-earning deposits
   
176,294
     
174,251
     
107,775
     
1.2
%
   
63.6
%
   Total cash and cash equivalents
   
195,264
     
206,710
     
124,235
     
(5.5
%)
   
57.2
%
                                         
Interest-earning time deposits
   
735
     
980
     
980
     
(25.0
%)
   
(25.0
%)
Securities available for sale
   
119,335
     
119,811
     
114,295
     
(0.4
%)
   
4.4
%
Equity investments
   
7,672
     
8,052
     
8,294
     
(4.7
%)
   
(7.5
%)
Loans held for sale
   
1,153
     
1,772
     
1,295
     
(34.9
%)
   
(11.0
%)
Loans receivable, net of allowance for loan losses of
                                       
   $22,359, $21,504, and $17,375, respectively
   
2,278,492
     
2,225,001
     
1,643,677
     
2.4
%
   
38.6
%
Federal Home Loan Bank of New York stock, at cost
   
13,405
     
14,755
     
10,211
     
(9.1
%)
   
31.3
%
Premises and equipment, net
   
20,293
     
20,392
     
18,768
     
(0.5
%)
   
8.1
%
Accrued interest receivable
   
8,378
     
8,635
     
6,153
     
(3.0
%)
   
36.2
%
Other real estate owned
   
1,333
     
1,232
     
532
     
8.2
%
   
150.6
%
Deferred income taxes
   
13,601
     
11,607
     
5,144
     
17.2
%
   
164.4
%
Goodwill and other intangible assets
   
5,699
     
5,714
     
-
     
-
     
-
 
Other assets
   
9,371
     
13,207
     
9,253
     
(37.6
%)
   
5.0
%
    Total Assets
 
$
2,674,731
   
$
2,637,868
   
$
1,942,837
     
1.4
%
   
37.7
%
                                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                                       
                                         
LIABILITIES
                                       
Non-interest bearing deposits
 
$
263,960
   
$
276,998
   
$
201,043
     
(4.7
%)
   
31.3
%
Interest bearing deposits
   
1,916,764
     
1,839,626
     
1,368,327
     
4.2
%
   
40.1
%
  Total deposits
   
2,180,724
     
2,116,624
     
1,569,370
     
3.0
%
   
39.0
%
FHLB Advances
   
245,800
     
275,800
     
185,000
     
(10.9
%)
   
32.9
%
Subordinated debentures
   
36,577
     
36,519
     
4,124
     
0.2
%
   
786.9
%
Other liabilities
   
11,415
     
13,162
     
7,889
     
(13.3
%)
   
44.7
%
    Total Liabilities
   
2,474,516
     
2,442,105
     
1,766,383
     
1.3
%
   
40.1
%
                                         
STOCKHOLDERS' EQUITY
                                       
Preferred stock: $0.01 par value, 10,000,000 shares authorized
   
-
     
-
     
-
     
-
     
-
 
Additional paid-in capital preferred stock
   
19,706
     
19,706
     
13,241
     
-
     
48.8
%
Common stock; no par value; 20,000,000 shares authorized
   
-
     
-
     
-
     
-
     
-
 
Additional paid-in capital common stock
   
176,259
     
175,970
     
164,230
     
0.2
%
   
7.3
%
Retained earnings
   
38,442
     
35,693
     
31,241
     
7.7
%
   
23.0
%
Accumulated other comprehensive (loss)
   
(5,076
)
   
(6,490
)
   
(3,142
)
   
(21.8
%)
   
61.6
%
Treasury stock, at cost
   
(29,116
)
   
(29,116
)
   
(29,116
)
   
-
     
-
 
    Total Stockholders' Equity
   
200,215
     
195,763
     
176,454
     
2.3
%
   
13.5
%
                                         
    Total Liabilities and Stockholders' Equity
 
$
2,674,731
   
$
2,637,868
   
$
1,942,837

   
1.4
%
   
37.7
%
                                         
 
Outstanding common shares 
    15,889       15,782       15,042                  

                 

BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In Thousands, Except for Per Share Amounts, Unaudited)
   
Year Ended December 31, 2018
   
Year Ended December 31, 2017
   
2018 vs. 2017
 
Interest and dividend income:
                 
  Loans, including fees
 
$
97,831
   
$
73,355
     
33.4
%
  Mortgage-backed securities
   
3,154
     
2,360
     
33.6
%
  Municipal bonds and other debt
   
607
     
544
     
11.6
%
  FHLB stock dividends and other interest earning assets
   
3,505
     
1,312
     
167.1
%
     Total interest and dividend income
   
105,097
     
77,571
     
35.5
%
                         
Interest expense:
                       
  Deposits:
                       
     Demand
   
4,314
     
2,816
     
53.2
%
     Savings and club
   
444
     
397
     
11.8
%
     Certificates of deposit
   
16,400
     
8,838
     
85.6
%
     
21,158
     
12,051
     
75.6
%
     Borrowings
   
6,258
     
3,636
     
72.1
%
       Total interest expense
   
27,416
     
15,687
     
74.8
%
                         
Net interest income
   
77,681
     
61,884
     
25.5
%
Provision for loan losses
   
5,130
     
2,110
     
143.1
%
                         
Net interest income, after provision for loan losses
   
72,551
     
59,774
     
21.4
%
                         
Non-interest income:
                       
   Fees and service charges
   
3,785
     
3,101
     
22.1
%
   Gain on sales of loans
   
2,333
     
2,357
     
(1.0
%)
   Loss on bulk sale of impaired loans held in portfolio
   
(24
)
   
-
     
-
 
   Gain on sales of other real estate owned
   
30
     
1,585
     
(98.1
%)
   Gain on sale of investment securities
   
-
     
97
     
-
 
   Unrealized loss on equity investments
   
(622
)
   
-
     
-
 
   Other
   
2,458
     
343
     
616.6
%
      Total non-interest income
   
7,960
     
7,483
     
6.4
%
                         
Non-interest expense:
                       
   Salaries and employee benefits
   
27,590
     
23,706
     
16.4
%
   Occupancy and equipment
   
9,579
     
8,274
     
15.8
%
   Data processing service fees
   
3,375
     
2,747
     
22.9
%
   Professional fees
   
1,937
     
2,834
     
(31.7
%)
   Director fees
   
752
     
691
     
8.8
%
   Regulatory assessments
   
1,435
     
1,127
     
27.3
%
   Advertising and promotional
   
422
     
433
     
(2.5
%)
   Other real estate owned, net
   
272
     
146
     
86.3
%
   Merger related expenses
   
2,408
     
802
     
200.2
%
   Other
   
8,496
     
6,284
     
35.2
%
      Total non-interest expense
   
56,266
     
47,044
     
19.6
%
                         
Income before income tax provision
   
24,245
     
20,213
     
19.9
%
Income tax provision
   
7,482
     
10,231
     
(26.9
%)
                         
Net Income
 
$
16,763
   
$
9,982
     
67.9
%
Preferred stock dividends
   
953
     
614
     
55.2
%
Net Income available to common stockholders
 
$
15,810
   
$
9,368
     
68.8
%
                         
Net Income per common share-basic and diluted
                       
Basic
 
$
1.02
   
$
0.76
     
34.2
%
Diluted
 
$
1.01
   
$
0.75
     
34.7
%
                         
Weighted average number of common shares outstanding
                       
Basic
   
15,567
     
12,403
     
25.5
%
Diluted
   
15,661
     
12,508
     
25.2
%



BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In Thousands, Except for Per Share Amounts, Unaudited)
                               
   
Three Months Ended,
             
   
December 31, 2018
   
September 30, 2018
   
December 31, 2017
   
December 31, 2018 vs September 30, 2018
   
December 31, 2018 vs December 31, 2017
 
                   
Interest and dividend income:
                             
  Loans, including fees
 
$
28,243
   
$
26,019
   
$
19,388
     
8.5
%
   
45.7
%
  Mortgage-backed securities
   
791
     
827
     
648
     
(4.4
%)
   
22.1
%
  Municipal bonds and other debt
   
191
     
116
     
167
     
64.7
%
   
14.4
%
  FHLB stock dividends and other interest earning assets
   
1,263
     
1,009
     
438
     
25.2
%
   
188.4
%
     Total interest and dividend income
   
30,488
     
27,971
     
20,641
     
9.0
%
   
47.7
%
                                         
Interest expense:
                                       
  Deposits:
                                       
     Demand
   
1,412
     
1,130
     
766
     
25.0
%
   
84.3
%
     Savings and club
   
126
     
116
     
98
     
8.6
%
   
28.6
%
     Certificates of deposit
   
5,674
     
4,591
     
2,401
     
23.6
%
   
136.3
%
     
7,212
     
5,837
     
3,265
     
23.6
%
   
120.9
%
     Borrowings
   
2,105
     
2,054
     
734
     
2.5
%
   
186.8
%
       Total interest expense
   
9,317
     
7,891
     
3,999
     
18.1
%
   
133.0
%
                                         
Net interest income
   
21,171
     
20,080
     
16,642
     
5.4
%
   
27.2
%
Provision for loan losses
   
821
     
907
     
325
     
(9.5
%)
   
152.6
%
                                         
Net interest income, after provision for loan losses
   
20,350
     
19,173
     
16,317
     
6.1
%
   
24.7
%
                                         
Non-interest income:
                                       
   Fees and service charges
   
1,012
     
1,092
     
718
     
(7.3
%)
   
40.9
%
   Gain on sales of loans
   
436
     
738
     
746
     
(40.9
%)
   
(41.6
%)
   Gain on sales of other real estate owned
   
26
     
14
     
15
     
85.7
%
   
73.3
%
   Unrealized loss on equity investments
   
(380
)
   
(82
)
   
-
     
(363.4
%)
   
-
 
   Other
   
65
     
90
     
36
     
(27.8
%)
   
80.6
%
      Total non-interest income
   
1,159
     
1,852
     
1,515
     
(37.4
%)
   
(23.5
%)
                                         
Non-interest expense:
                                       
   Salaries and employee benefits
   
7,042
     
7,156
     
5,813
     
(1.6
%)
   
21.1
%
   Occupancy and equipment
   
2,551
     
2,490
     
2,089
     
2.4
%
   
22.1
%
   Data processing service fees
   
876
     
942
     
713
     
(7.0
%)
   
22.9
%
   Professional fees
   
462
     
437
     
597
     
5.7
%
   
(22.6
%)
   Director fees
   
158
     
192
     
115
     
(17.7
%)
   
37.4
%
   Regulatory assessments
   
487
     
419
     
117
     
16.2
%
   
316.2
%
   Advertising and promotional
   
108
     
129
     
58
     
(16.3
%)
   
86.2
%
   Other real estate owned, net
   
59
     
22
     
81
     
168.2
%
   
(28.0
%)
   Merger related expenses
   
105
     
119
     
802
     
(11.8
%)
   
(86.9
%)
   Other
   
2,036
     
2,485
     
1,649
     
(18.1
%)
   
23.5
%
      Total non-interest expense
   
13,884
     
14,391
     
12,035
     
(3.5
%)
   
15.4
%
                                         
Income before income tax provision
   
7,625
     
6,634
     
5,797
     
14.9
%
   
31.5
%
Income tax provision
   
2,401
     
2,040
     
4,458
     
17.7
%
   
(46.1
%)
                                         
Net Income
 
$
5,224
   
$
4,594
   
$
1,339
     
13.7
%
   
290.1
%
Preferred stock dividends
   
262
     
263
     
165
     
(0.4
%)
   
58.8
%
Net Income available to common stockholders
 
$
4,962
   
$
4,331
   
$
1,174
     
14.6
%
   
322.7
%
                                         
Net Income per common share-basic and diluted
                                       
Basic
 
$
0.31
   
$
0.27
   
$
0.08
     
14.8
%
   
287.5
%
Diluted
 
$
0.31
   
$
0.27
   
$
0.08
     
14.8
%
   
287.5
%
                                         
Weighted average number of common shares outstanding
                                       
Basic
   
15,820
     
15,789
     
15,037
     
0.2
%
   
5.2
%
Diluted
   
15,851
     
15,896
     
15,168
     
(0.3
%)
   
4.5
%




                                                        BCB BANCORP INC. AND SUBSIDIARIES

   
Net Interest Margin
Twelve Months Ended December 31,
 
   
2018
   
2017
 
   
Average Balance
   
Interest Earned/Paid
   
Average Yield/Rate
   
Average Balance
   
Interest Earned/Paid
   
Average Yield/Rate
 
   
(Dollars in thousands)
 
Interest-earning assets:
                                   
Loans Receivable
 
$
2,060,187
   
$
97,831
     
4.75
%
 
$
1,591,339
   
$
73,335
     
4.61
%
Investment Securities
   
142,343
     
3,761
     
2.64
%
   
104,520
     
2,904
     
2.78
%
Interest-earning deposits
   
142,867
     
3,505
     
2.45
%
   
77,399
     
1,312
     
1.70
%
   Total Interest-earning assets
   
2,345,397
     
105,097
     
4.48
%
   
1,773,258
     
77,571
     
4.37
%
Non-interest-earning assets
   
55,404
                     
54,509
                 
   Total assets
 
$
2,400,801
                   
$
1,827,767
                 
Interest-bearing liabilities:
                                               
Interest-bearing demand accounts
 
$
334,156
   
$
2,036
     
0.61
%
 
$
305,208
   
$
1,666
     
0.55
%
Money market accounts
   
118,109
     
2,278
     
1.21
%
   
135,202
     
1,150
     
0.85
%
Savings accounts
   
262,745
     
444
     
0.17
%
   
263,500
     
397
     
0.15
%
Certificates of Deposit
   
911,141
     
16,400
     
1.80
%
   
619,377
     
8,838
     
1.43
%
   Total interest-bearing deposits
   
1,696,151
     
21,158
     
1.25
%
   
1,323,287
     
12,051
     
0.91
%
Borrowed funds
   
262,227
     
6,258
     
2.39
%
   
160,699
     
3,636
     
2.26
%
   Total interest-bearing liabilities
   
1,958,378
     
27,416
     
1.40
%
   
1,483,985
     
15,687
     
1.06
%
Non-interest-bearing liabilities
   
253,301
                     
201,651
                 
   Total liabilities
   
2,211,679
                     
1,685,636
                 
Stockholders' equity
   
189,122
                     
142,131
                 
   Total liabilities and stockholders' equity
 
$
2,400,801
                   
$
1,827,767
                 
Net interest income
         
$
77,681
                   
$
61,884
         
Net interest rate spread
                   
3.08
%
                   
3.32
%
Net interest margin
                   
3.31
%
                   
3.49
%
                                                 
                                                 





                                                    BCB BANCORP INC. AND SUBSIDIARIES

   
Net Interest Margin
Three Months Ended December 31,
 
   
2018
   
2017
 
   
Average Balance
   
Interest Earned/Paid
   
Average Yield/Rate
   
Average Balance
   
Interest Earned/Paid
   
Average Yield/Rate
 
   
(Dollars in thousands)
 
Interest-earning assets:
                                   
Loans Receivable
 
$
2,228,372
   
$
28,243
     
4.94
%
 
$
1,655,570
   
$
19,388
     
4.68
%
Investment Securities
   
141,248
     
982
     
2.78
%
   
112,357
     
815
     
2.90
%
Interest-earning deposits
   
187,051
     
1,263
     
2.70
%
   
99,785
     
438
     
1.76
%
   Total Interest-earning assets
   
2,616,672
     
30,488
     
4.66
%
   
1,867,713
     
20,641
     
4.42
%
Non-interest-earning assets
   
61,033
                     
48,999
                 
   Total assets
 
$
2,677,705
                   
$
1,916,712
                 
Interest-bearing liabilities:
                                               
Interest-bearing demand accounts
 
$
349,730
   
$
634
     
0.73
%
 
$
312,901
   
$
431
     
0.55
%
Money market accounts
   
214,278
     
778
     
1.45
%
   
143,690
     
335
     
0.94
%
Savings accounts
   
261,526
     
126
     
0.19
%
   
259,156
     
98
     
0.15
%
Certificates of Deposit
   
1,063,045
     
5,674
     
2.13
%
   
651,334
     
2,401
     
1.47
%
   Total interest-bearing deposits
   
1,888,580
     
7,212
     
1.53
%
   
1,367,080
     
3,265
     
0.96
%
Borrowed funds
   
311,663
     
2,105
     
2.70
%
   
163,733
     
734
     
1.79
%
   Total interest-bearing liabilities
   
2,220,243
     
9,317
     
1.69
%
   
1,530,813
     
3,999
     
1.04
%
Non-interest-bearing liabilities
   
281,400
                     
208,245
                 
   Total liabilities
   
2,481,643
                     
1,739,058
                 
Stockholders' equity
   
196,062
                     
177,655
                 
   Total liabilities and stockholders' equity
 
$
2,677,705
                   
$
1,916,712
                 
Net interest income
         
$
21,171
                   
$
16,642
         
Net interest rate spread
                   
2.97
%
                   
3.38
%
Net interest margin
                   
3.24
%
                   
3.56
%
                                                 
                                                 




                                              BCB BANCORP INC. AND SUBSIDIARIES

 
Financial condition data by quarter
 
     
Q4 2018
     
Q3 2018
     
Q2 2018
     
Q1 2018
     
Q4 2017
     
Q3 2017
 
                                                 
 
(In thousands, except tangible book value)
 
Total assets
 
$
2,674,731
   
$
2,637,868
   
$
2,516,564
   
$
2,082,313
   
$
1,942,837
   
$
1,871,740
 
Cash and cash equivalents
   
195,264
     
206,710
     
180,445
     
137,334
     
124,235
     
97,618
 
Securities available for sale
   
127,007
     
127,863
     
135,425
     
127,324
     
122,589
     
100,077
 
Loans receivable, net
   
2,278,492
     
2,225,001
     
2,119,829
     
1,764,597
     
1,643,677
     
1,619,245
 
Deposits
   
2,180,724
     
2,116,624
     
1,984,876
     
1,691,353
     
1,569,370
     
1,546,148
 
Borrowings
   
282,377
     
312,319
     
324,124
     
204,124
     
189,124
     
142,124
 
Stockholders’ equity
   
200,215
     
195,763
     
194,076
     
177,386
     
176,454
     
177,568
 
Tangible Book Value
   
11.00
     
10.78
     
10.68
     
10.90
     
10.85
     
10.93
 
                                                 
 
Operating data by quarter
 
     
Q4 2018
     
Q3 2018
     
Q2 2018
     
Q1 2018
     
Q4 2017
     
Q3 2017
 
                                                 
   
(In thousands, except for per share amounts)
 
Net interest income
 
$
21,171
   
$
20,080
   
$
19,990
   
$
16,440
   
$
16,642
   
$
15,574
 
Provision for loan losses
   
821
     
907
     
2,060
     
1,342
     
325
     
511
 
Non-interest income
   
1,159
     
1,852
     
1,563
     
3,386
     
1,515
     
1,633
 
Non-interest expense
   
13,884
     
14,391
     
15,980
     
12,011
     
12,035
     
11,299
 
Income tax expense
   
2,401
     
2,040
     
1,200
     
1,841
     
4,458
     
2,180
 
Net income
 
$
5,224
   
$
4,594
   
$
2,313
   
$
4,632
   
$
1,339
   
$
3,217
 
Net income per share
 
$
0.31
   
$
0.27
   
$
0.13
   
$
0.30
   
$
0.08
   
$
0.25
 
Common Dividends declared per share
 
$
0.14
   
$
0.14
   
$
0.14
   
$
0.14
   
$
0.14
   
$
0.14
 
                                                 
 
Financial Ratios
 
     
Q4 2018
     
Q3 2018
     
Q2 2018
     
Q1 2018
     
Q4 2017
     
Q3 2017
 
Return on average assets
   
0.78
%
   
0.72
%
   
0.40
%
   
0.92
%
   
0.28
%
   
0.70
%
Return on average stockholder’s equity
   
10.66
%
   
9.44
%
   
4.90
%
   
10.48
%
   
3.01
%
   
9.17
%
Net interest margin
   
3.24
%
   
3.22
%
   
3.52
%
   
3.34
%
   
3.56
%
   
3.50
%
Stockholder’s equity to total assets
   
7.49
%
   
7.42
%
   
7.71
%
   
8.52
%
   
9.08
%
   
9.49
%
                                                 
 
Asset Quality Ratios
 
 
(In thousands, except for ratio %)
 
     
Q4 2018
     
Q3 2018
     
Q2 2018
     
Q1 2018
     
Q4 2017
     
Q3 2017
 
Non-Accrual Loans
 
$
7,221
   
$
11,093
   
$
10,763
   
$
10,619
   
$
13,036
   
$
16,958
 
Non-Accrual Loans as a % of Total Loans
   
0.31
%
   
0.49
%
   
0.50
%
   
0.60
%
   
0.78
%
   
1.03
%
ALLL as % of Non-Accrual Loans
   
309.64
%
   
193.85
%
   
191.79
%
   
172.68
%
   
133.28
%
   
108.79
%
Impaired Loans
   
42,408
     
47,251
     
50,899
     
36,199
     
37,786
     
40,992
 
Classified Loans
   
26,161
     
30,179
     
33,605
     
20,299
     
21,730
     
26,663
 
Transmitted on Globe Newswire on January 31, 2018 at 4:15 p.m. Eastern Time.
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