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Section 1: 8-K (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): April 18, 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. 
 

Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange on which registered
Common Stock
 
BCBP
 
The Nasdaq Stock Market, LLC


Item 2.02 Results of Operations and Financial Condition

On April 18, 2019, BCB Bancorp, Inc. (the "Company") issued a press release reporting its financial results at and for the three months ended March 31, 2019.

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.
   
99.1
 


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: May 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)


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




BCB Bancorp, Inc. Reports Earnings of $5.5 Million in First Quarter 2019;
An Increase of 18 Percent Over the First Quarter of 2018

BAYONNE, N.J., April 18, 2019 -- BCB Bancorp, Inc. (the "Company"), Bayonne, NJ (NASDAQ: BCBP), the holding company for BCB Community Bank (the "Bank"), today reported that increases in total interest income and a decrease in the provision for loan losses contributed to first quarter 2019 profits.  Net income increased $819,000, or 17.7 percent, to $5.5 million for the first quarter of 2019, compared with $4.6 million for the first quarter a year ago. In the preceding quarter, the Company earned $5.2 million.
"We continued to deliver strong financial results and achieved an 18 percent increase in profits over the first quarter a year ago," stated Thomas Coughlin, President and Chief Executive Officer.  "Solid earning assets and deposit growth resulted in higher net interest income.  That along with sound credit quality and a larger asset base as a result of the IAB acquisition completed a year ago contributed to our first quarter results.  We are well positioned to maintain our growth strategies as we continue to look for opportunities to expand our presence in both New Jersey as well as surrounding markets."
The IAB acquisition, which was completed during the second quarter of 2018, added approximately $221.9 million in assets, $178.4 million in deposits and $182.6 million in net loans.

First Quarter 2019 Financial Highlights
·
Net income increased 17.7 percent to $5.5 million in the first quarter of 2019, compared to $4.6 million in the first quarter of 2018.
·
Earnings per diluted share increased to $0.32 in 1Q19 compared to $0.29 in 1Q18.
·
Net interest income, before the provision for loan losses, increased 27.1 percent to $20.9 million in the first quarter, compared to $16.4 million in the first quarter a year ago.
·
Net interest margin was 3.18 percent in the first quarter compared to 3.34 percent in the first quarter a year ago.
·
Total assets increased 30.5 percent to $2.718 billion at March 31, 2019, compared to $2.082 billion a year earlier.
·
Net loans receivable increased 30.7 percent to $2.307 billion at March 31, 2019, compared to $1.765 billion a year earlier.
·
Allowance for loan loss as a percentage of non-accrual loans was 405.7 percent at March 31, 2019, compared to 172.7 percent at March 31, 2018.
·
Tangible book value was $11.58 at March 31, 2019.
·
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 May 24, 2019, to common shareholders of record on May 10, 2019.
·
The Company issued $6.3 million of private placement common stock which closed in February 2019 and $5.3 million of preferred series G stock, which was issued in January 2019. The Company had also issued $33.5 million of subordinated debt in July 2018 which, for regulatory purposes, is treated as Tier 1 capital for the Bank and Tier 2 capital for the Company.

Balance Sheet Review
Total assets increased by $636.1 million, or 30.5 percent, to $2.718 billion at March 31, 2019 from $2.082 billion at March 31, 2018 and increased by $43.7 million, or 1.6 percent, compared to December 31, 2018. The increase in total assets from March 31, 2018 included the acquisition of IAB, which added approximately $221.9 million in assets.
Loans receivable, net increased by $542.5 million, or 30.7 percent, to $2.307 billion at March 31, 2019 from $1.765 billion at March 31, 2018 and increased by $28.6 million, or 1.3 percent, from $2.278 billion at December 31, 2018. The organic growth in loans over the first three months of 2019 represented increases of $26.5 million in commercial real estate and multi-family loans, $6.7 million in construction loans, $1.9 million in commercial business loans, $100,000 in residential one-to-four family loans, partly offset by decreases of $6.0 million in home equity loans and $78,000 in consumer loans.
 
1

Total cash and cash equivalents increased by $56.2 million, or 40.9 percent, to $193.5 million at March 31, 2019 from $137.3 million at March 31, 2018, and decreased by $1.7 million, or 0.9 percent compared to $195.2 million at December 31, 2018. The Company's level of cash and cash equivalents is a part of its strategy to maintain strong levels of liquidity. Total investment securities decreased by $1.4 million or 1.1% to $125.9 million at March 31, 2019, from $127.3 million a year earlier and decreased by $1.1 million, or 0.9 percent, to $125.9 million compared to $127.0 million three months earlier.
During the quarter ended March 31, 2019, the Company adopted Accounting Standards Update ("ASU") No. 2016-02 - Leases, requiring on-balance sheet reporting for all operating and financing leases, which resulted in the recording of $16.0 million in operating and financing lease right-of-use assets and a corresponding $16.0 million in operating and financing lease liabilities associated with the implementation of the standard.
Deposit liabilities increased by $497.3 million, or 29.4 percent, to $2.189 billion at March 31, 2019 from $1.691 billion at March 31, 2018, and increased by $7.9 million, or 0.4 percent, when compared to $2.181 billion at December 31, 2018. Increases over the first three months of 2019 included $43.2 million in certificates of deposit, excluding listing service and brokered deposits, $26.4 million in money market checking accounts, $4.3 million in transaction accounts and $2.4 million in savings and club accounts. The increases provided by the growth in these accounts was somewhat offset by reductions in the Company's listing service and brokered certificate of deposits, which saw decreases of $1.8 million and $63.6 million, respectively. The Company uses listing service and brokered certificates of deposits as additional sources of deposit liquidity, which totaled $35.1 million and $184.4 million, respectively, at March 31, 2019.
Debt obligations increased by $78.3 million or 38.4 percent, to $282.4 million at March 31, 2019 compared to $204.1 million at March 31, 2018 and remained flat when compared to December 31, 2018.  Debt obligations consisted of both Federal Home Loan Bank ("FHLB") borrowings and subordinated debt balances. The weighted average interest rate of FHLB advances was 2.18 percent at March 31, 2019. The issuance of subordinated debt was to maintain adequate capital ratios for further growth. The fixed interest rate of subordinated debt balances was 5.625 percent at March 31, 2019.
Stockholders' equity increased by $39.3 million, or 22.2 percent, to $216.7 million at March 31, 2019 from $177.4 million at March 31, 2018 and increased by $16.5 million, or 8.2 percent, compared to $200.2 million at December 31, 2018. The increase in stockholders' equity from March 31, 2018 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, the Company's issuance of $6.3 million of private placement common stock which closed in February 2019 and the issuance of $5.3 million of preferred series G stock, which was issued in January 2019. Retained earnings increased by $7.1 million to $40.8 million at March 31, 2019 from $33.7 million at March 31, 2018, due primarily to the increase in net income, net of dividends paid.
First Quarter Income Statement Review
Net interest income increased by $4.5 million, or 27.1 percent, to $20.9 million for the first quarter of 2019 from $16.4 million for the first quarter of 2018. The increase in net interest income resulted primarily from an increase in the average balance of interest-earning assets of $662.0 million, or 33.6 percent, to $2.629 billion for the first quarter of 2019 from $1.968 billion for the first quarter of 2018. There was an increase in the average yield on interest-earning assets of 38 basis points to 4.64 percent for the first quarter of 2019, from 4.26 percent for the first quarter of 2018. There was also an increase in the average balance of interest-bearing liabilities of $574.9 million, or 35.2 percent, to $2.208 billion for the first quarter, from $1.633 billion for the first quarter a year ago, and an increase in the average rate on interest-bearing liabilities of 63 basis points to 1.73 percent for the first quarter, from 1.10 percent for the first quarter a year ago.
Net interest margin was 3.18 percent for the first quarter of 2019 compared to 3.24 percent in the preceding quarter and 3.34 percent for the first quarter a year ago. "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," said Coughlin.
Total non-interest income decreased by $1.7 million, or 51.0 percent, to $1.7 million for the first quarter of 2019 from $3.4 million for the first quarter of 2018. The decrease in total non-interest income was primarily related to a decrease in the amount of other non-interest income of $2.2 million, or 97.6 percent, to $53,000 for the first quarter from $2.2 million for the first quarter a year ago. The decrease in other non-interest income was the result of $2.2 million in proceeds from a legal settlement recognized in the first quarter of 2018.
 
2

First quarter total non-interest expense increased by $1.8 million, or 14.7 percent, to $13.8 million from $12.0 million for the first quarter of 2018. 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. These increases in total non-interest expense were partly offset by a decrease in merger-related costs, of which $145,000 was recognized in the first quarter of 2018 with no comparable expense during the first quarter of 2019.

The income tax provision increased by $604,000, or 32.8 percent, to $2.4 million for the first quarter of 2019 from $1.8 million for the first quarter of 2018. The increase in the income tax provision comes as a result of higher taxable income for the first quarter of 2019 as compared to that same period for 2018. The consolidated effective tax rate for the first quarter of 2019 was 31.0 percent compared to 28.4 percent for the first quarter of 2018. The higher effective tax rate in the current period primarily relates to an increase in the New Jersey corporate business tax of 2.5 percent which was enacted July 1, 2018 and effective retroactively to January 1, 2018.
Asset Quality
The provision for loan losses decreased by $453,000, to $889,000 for the first quarter of 2019 from $1.3 million for the first quarter of 2018.  Non-accruing loans improved to $5.7 million, or 0.24 percent of gross loans at March 31, 2019, compared to $7.2 million, or 0.31 percent of gross loans at December 31, 2018, and $10.6 million, or 0.60 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 ("TDR") loans that were not included in nonaccrual loans at March 31, 2019, were $23.1 million, compared to $22.5 million at December 31, 2018 and $21.4 million at March 31, 2018. 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 TDR loans.
The allowance for loan losses was $23.0 million, or 405.7 percent of non-accruing loans and 0.99 percent of gross loans, at March 31, 2019 as compared to an allowance for loan losses of $22.4 million, or 309.6 percent of non-accruing loans and 0.97 percent of gross loans, at December 31, 2018 and an allowance of $18.3 million or 172.7 percent of non-accruing loans and 1.03 percent of gross loans, a year ago. The decline in the allowance as a percentage of gross loans from March 31, 2018 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 $238.5 million at March 31, 2019 totaled $6.1 million at March 31, 2019. The Company's combined coverage of allowance for loan loss and credit mark on the acquired portfolios totaled $29.1 million, or 1.25 percent of the overall loan portfolio, at March 31, 2019. Net charge-offs were $244, 000 in the first quarter of 2019, compared to $34,000 of net recoveries in the fourth quarter of 2018 and $380,000 in the first quarter of 2018.
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 29 branch offices in Bayonne, Carteret, Colonia, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lodi, Lyndhurst, Maplewood, Monroe Township, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, 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.

3

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.
 
4

   
Three Months Ended,
                   
   
 
 
March 31, 2019
   
 
 
December 31, 2018
   
 
 
March 31, 2018
   
March 31, 2019 vs. December 31, 2018
   
March 31, 2019 vs. March 31, 2018
 
Interest and dividend income:
                             
   Loans, including fees
 
$
28,233
   
$
28,243
   
$
19,521
     
0.0
%
   
44.6
%
  Mortgage-backed securities
   
770
     
791
     
699
     
-2.7
%
   
10.2
%
   Municipal bonds and other debt
   
128
     
191
     
104
     
-33.0
%
   
23.1
%
  FHLB stock and other interest earning assets
   
1,347
     
1,263
     
618
     
6.7
%
   
118.0
%
      Total interest and dividend income
   
30,478
     
30,488
     
20,942
     
0.0
%
   
45.5
%
                                         
 Interest expense:
                                       
  Deposits:
                                       
      Demand
   
1,576
     
1,412
     
797
     
11.6
%
   
97.7
%
     Savings and club
   
113
     
126
     
97
     
-10.3
%
   
16.5
%
      Certificates of deposit
   
5,990
     
5,674
     
2,730
     
5.6
%
   
119.4
%
     
7,679
     
7,212
     
3,624
     
6.5
%
   
111.9
%
      Borrowings
   
1,897
     
2,105
     
878
     
-9.9
%
   
116.1
%
       Total interest expense
   
9,576
     
9,317
     
4,502
     
2.8
%
   
112.7
%
                                         
Net interest income
   
20,902
     
21,171
     
16,440
     
-1.3
%
   
27.1
%
 Provision for loan losses
   
889
     
821
     
1,342
     
8.3
%
   
-33.8
%
                                         
 Net interest income after provision for loan losses
   
20,013
     
20,350
     
15,098
     
-1.7
%
   
32.6
%
                                         
 Non-interest income:
                                       
   Fees and service charges
   
883
     
1,012
     
710
     
-12.7
%
   
24.4
%
    Gain on sales of loans
   
318
     
436
     
583
     
-27.1
%
   
-45.5
%
   Gain (loss) on bulk sale of impaired loans held in portfolio
   
107
     
-
     
(24
)
   
-
     
-545.8
%
    Gain on sales of other real estate owned
   
8
     
26
     
-
     
-69.2
%
   
0.0
%
   Gain on sale of investment securities
   
-
     
-
     
-
     
-
     
-
 
    Unrealized gain (loss) on equity investments
   
291
     
(380
)
   
(127
)
   
-176.6
%
   
-329.1
%
   Other
   
53
     
65
     
2,244
     
-18.5
%
   
-97.6
%
       Total non-interest income
   
1,660
     
1,159
     
3,386
     
43.2
%
   
-51.0
%
                                         
 Non-interest expense:
                                       
   Salaries and employee benefits
   
6,915
     
7,042
     
6,267
     
-1.8
%
   
10.3
%
    Occupancy and equipment
   
2,630
     
2,551
     
2,062
     
3.1
%
   
27.5
%
   Data processing and service fees
   
721
     
876
     
729
     
-17.7
%
   
-1.1
%
    Professional fees
   
533
     
462
     
505
     
15.4
%
   
5.5
%
   Director fees
   
318
     
158
     
201
     
101.3
%
   
58.2
%
    Regulatory assessments
   
457
     
487
     
239
     
-6.2
%
   
91.2
%
   Advertising and promotional
   
73
     
108
     
85
     
-32.4
%
   
-14.1
%
    Other real estate owned, net
   
(16
)
   
59
     
31
     
-127.1
%
   
-151.6
%
   Merger related costs
   
-
     
105
     
145
     
-100.0
%
   
-100.0
%
    Other
   
2,146
     
2,036
     
1,747
     
5.4
%
   
22.8
%
      Total non-interest expense
   
13,777
     
13,884
     
12,011
     
-0.8
%
   
14.7
%
                                         
Income before income tax provision
   
7,896
     
7,625
     
6,473
     
3.6
%
   
22.0
%
 Income tax provision
   
2,445
     
2,401
     
1,841
     
1.8
%
   
32.8
%
                                         
 Net Income
 
$
5,451
   
$
5,224
   
$
4,632
     
4.3
%
   
17.7
%
Preferred stock dividends
   
317
     
262
     
166
     
21.0
%
   
91.0
%
 Net Income available to common stockholders
 
$
5,134
   
$
4,962
   
$
4,466
     
3.5
%
   
15.0
%
                                         
 Net Income per common share-basic and diluted
                                       
Basic
 
$
0.32
   
$
0.31
   
$
0.30
     
3.2
%
   
6.7
%
   Diluted
 
$
0.32
   
$
0.31
   
$
0.29
     
3.2
%
   
10.3
%
                                         
Weighted average number of common shares outstanding
                                 
Basic
   
16,078
     
15,820
     
15,048
     
1.6
%
   
6.8
%
   Diluted
   
16,111
     
15,851
     
15,181
     
1.6
%
   
6.1
%
 
5

 
   
 
 
March 31, 2019
   
 
 
December 31, 2018
   
 
 
March 31, 2018
   
March 31, 2019 vs. December 31, 2018
   
March 31, 2019 vs. March 31, 2018
 
 ASSETS
                             
 Cash and amounts due from depository institutions
 
$
18,610
   
$
18,970
   
$
13,299
     
-1.9
%
   
39.9
%
Interest-earning deposits
   
174,938
     
176,294
     
124,035
     
-0.8
%
   
41.0
%
    Total cash and cash equivalents
   
193,548
     
195,264
     
137,334
     
-0.9
%
   
40.9
%
                                         
 Interest-earning time deposits
   
735
     
735
     
980
     
0.0
%
   
-25.0
%
Debt securities available for sale
   
117,942
     
119,335
     
119,158
     
-1.2
%
   
-1.0
%
 Equity investments
   
7,963
     
7,672
     
8,166
     
3.8
%
   
-2.5
%
Loans held for sale
   
1,347
     
1,153
     
208
     
16.8
%
   
547.6
%
 Loans receivable, net of allowance for loan losses
                                       
   of $23,004, $22,359, and $18,337, respectively
   
2,307,140
     
2,278,492
     
1,764,597
     
1.3
%
   
30.7
%
 Federal Home Loan Bank of New York stock, at cost
   
13,405
     
13,405
     
10,886
     
0.0
%
   
23.1
%
Premises and equipment, net
   
19,684
     
20,293
     
18,295
     
-3.0
%
   
7.6
%
 Finance lease right-of-use asset (net)
   
673
     
-
     
-
     
0.0
%
   
0.0
%
Operating lease right-of-use asset
   
15,346
     
-
     
-
     
0.0
%
   
0.0
%
 Accrued interest receivable
   
9,750
     
8,378
     
6,052
     
16.4
%
   
61.1
%
Other real estate owned
   
1,746
     
1,333
     
1,412
     
31.0
%
   
23.7
%
 Deferred income taxes
   
13,302
     
13,601
     
6,144
     
-2.2
%
   
116.5
%
Goodwill and other intangibles
   
5,584
     
5,604
     
-
     
-0.4
%
   
-
 
 Other assets
   
10,235
     
9,466
     
9,081
     
8.1
%
   
12.7
%
    Total Assets
 
$
2,718,400
   
$
2,674,731
   
$
2,082,313
     
1.6
%
   
30.5
%
                                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                                       
                                         
LIABILITIES
                                       
 Non-interest bearing deposits
 
$
273,370
   
$
263,960
   
$
211,251
     
3.6
%
   
29.4
%
Interest bearing deposits
   
1,915,263
     
1,916,764
     
1,480,102
     
-0.1
%
   
29.4
%
   Total deposits
   
2,188,633
     
2,180,724
     
1,691,353
     
0.4
%
   
29.4
%
FHLB advances
   
245,800
     
245,800
     
200,000
     
0.0
%
   
22.9
%
 Subordinated debentures
   
36,635
     
36,577
     
4,124
     
0.2
%
   
788.3
%
Finance lease liability
   
678
     
-
     
-
     
-
     
-
 
 Operating lease liability
   
15,381
     
-
     
-
     
-
     
-
 
Other liabilities
   
14,555
     
11,415
     
9,450
     
27.5
%
   
54.0
%
     Total Liabilities
   
2,501,682
     
2,474,516
     
1,904,927
     
1.1
%
   
31.3
%
                                         
STOCKHOLDERS' EQUITY
                                       
Preferred stock: $0.01 par value, 10,000,000 shares authorized
   
-
     
-
     
-
     
-
     
-
 
 Additional paid-in capital preferred stock
   
25,016
     
19,706
     
13,241
     
26.9
%
   
88.9
%
Common stock: no par value, 20,000,000 shares authorized
   
-
     
-
     
-
     
-
     
-
 
 Additional paid-in capital common stock
   
176,379
     
175,500
     
164,512
     
0.5
%
   
7.2
%
Retained earnings
   
40,750
     
38,405
     
33,728
     
6.1
%
   
20.8
%
 Accumulated other comprehensive (loss)
   
(3,379
)
   
(5,076
)
   
(4,979
)
   
-33.4
%
   
-32.1
%
Treasury stock, at cost
   
(22,048
)
   
(28,320
)
   
(29,116
)
   
-22.1
%
   
-24.3
%
     Total Stockholders' Equity
   
216,718
     
200,215
     
177,386
     
8.2
%
   
22.2
%
                                         
      Total Liabilities and Stockholders' Equity
 
$
2,718,400
   
$
2,674,731
   
$
2,082,313
     
1.6
%
   
30.5
%
                                         
Outstanding common shares
   
16,398
     
15,889
     
15,055
                 


6

   
Three Months Ended March 31,
 
   
2019
   
2018
 
   
Average Balance
   
Interest Earned/Paid
   
Average Yield/Rate (3)
   
Average Balance
   
Interest Earned/Paid
   
Average Yield/Rate (3)
 
   
(Dollars in thousands)
 
Interest-earning assets:
                                   
Loans Receivable
 
$
2,317,250
   
$
28,233
     
4.87
%
 
$
1,720,865
   
$
19,521
     
4.54
%
Investment Securities
   
139,171
     
898
     
2.58
%
   
123,450
     
803
     
2.60
%
Interest-earning deposits
   
173,076
     
1,347
     
3.11
%
   
123,193
     
618
     
2.01
%
   Total Interest-earning assets
   
2,629,497
     
30,478
     
4.64
%
   
1,967,508
     
20,942
     
4.26
%
Non-interest-earning assets
   
60,741
                     
47,254
                 
   Total assets
 
$
2,690,238
                   
$
2,014,762
                 
Interest-bearing liabilities:
                                               
Interest-bearing demand accounts
 
$
341,659
   
$
604
     
0.71
%
 
$
314,074
   
$
426
     
0.54
%
Money market accounts
   
237,011
     
972
     
1.64
%
   
157,421
     
371
     
0.94
%
Savings accounts
   
260,524
     
113
     
0.17
%
   
258,805
     
97
     
0.15
%
Certificates of Deposit
   
1,085,299
     
5,990
     
2.21
%
   
720,696
     
2,730
     
1.52
%
   Total interest-bearing deposits
   
1,924,493
     
7,679
     
1.60
%
   
1,450,996
     
3,624
     
1.00
%
Borrowed funds
   
283,460
     
1,897
     
2.68
%
   
182,013
     
878
     
1.93
%
   Total interest-bearing liabilities
   
2,207,953
     
9,576
     
1.74
%
   
1,633,009
     
4,502
     
1.11
%
Non-interest-bearing liabilities
   
275,575
                     
205,033
                 
   Total liabilities
   
2,483,528
                     
1,838,042
                 
Stockholders' equity
   
206,710
                     
176,720
                 
   Total liabilities and stockholders' equity
 
$
2,690,238
                   
$
2,014,762
                 
Net interest income
         
$
20,902
                   
$
16,440
         
Net interest rate spread(1)
                   
2.90
%
                   
3.15
%
Net interest margin(2)
                   
3.18
%
                   
3.34
%
                                                 
                                                 

(1)
Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
(2)
Net interest margin represents net interest income divided by average total interest-earning assets.
(3)
Annualized.


7


   
Financial condition data by quarter
 
     
Q1 2019
     
Q4 2018
     
Q3 2018
     
Q2 2018
     
Q1 2018
     
Q4 2017
 
                                                 
           
(In thousands, except tangible book value)
 
Total assets
 
$
2,718,400
   
$
2,674,731
   
$
2,637,868
   
$
2,516,564
   
$
2,082,313
   
$
1,942,837
 
Cash and cash equivalents
   
193,548
     
195,264
     
206,710
     
180,445
     
137,334
     
124,235
 
Securities
   
125,905
     
127,007
     
127,863
     
135,425
     
127,324
     
122,589
 
Loans receivable, net
   
2,307,140
     
2,278,492
     
2,225,001
     
2,119,829
     
1,764,597
     
1,643,677
 
Deposits
   
2,188,633
     
2,180,724
     
2,116,624
     
1,984,876
     
1,691,353
     
1,569,370
 
Borrowings
   
282,435
     
282,377
     
312,319
     
324,124
     
204,124
     
189,124
 
Stockholders' equity
   
216,718
     
200,215
     
195,763
     
194,076
     
177,386
     
176,454
 
Tangible Book Value
   
11.58
     
11.00
     
10.78
     
10.68
     
10.90
     
10.85
 
                                                 
   
Operating data by quarter
 
     
Q1 2019
     
Q4 2018
     
Q3 2018
     
Q2 2018
     
Q1 2018
     
Q4 2017
 
                                                 
   
(In thousands, except for per share amounts)
 
Net interest income
 
$
20,902
   
$
21,171
   
$
20,080
   
$
19,990
   
$
16,440
   
$
16,642
 
Provision for loan losses
   
889
     
821
     
907
     
2,060
     
1,342
     
325
 
Non-interest income
   
1,660
     
1,159
     
1,852
     
1,563
     
3,386
     
1,515
 
Non-interest expense
   
13,777
     
13,884
     
14,391
     
15,980
     
12,011
     
12,035
 
Income tax expense
   
2,445
     
2,401
     
2,040
     
1,200
     
1,841
     
4,458
 
Net income
 
$
5,451
   
$
5,224
   
$
4 ,594
   
$
2,313
   
$
4,632
   
$
1,339
 
Diluted net income per share:
 
$
0.32
   
$
0.31
   
$
0.27
   
$
0.13
   
$
0.29
   
$
0.08
 
Common Dividends declared per share
 
$
0.14
   
$
0.14
   
$
0.14
   
$
0.14
   
$
0.14
   
$
0.14
 
                                                 
   
Financial Ratios
 
     
Q1 2019
     
Q4 2018
     
Q3 2018
     
Q2 2018
     
Q1 2018
     
Q4 2017
 
Return on average assets
   
0.81
%
   
0.78
%
   
0.72
%
   
0.40
%
   
0.92
%
   
0.28
%
Return on average stockholder's equity
   
10.55
%
   
10.66
%
   
9.44
%
   
4.90
%
   
10.48
%
   
3.01
%
Net interest margin
   
3.18
%
   
3.24
%
   
3.22
%
   
3.52
%
   
3.34
%
   
3.56
%
Stockholder's equity to total assets
   
7.97
%
   
7.49
%
   
7.42
%
   
7.71
%
   
8.52
%
   
9.08
%
                                                 
   
Asset Quality Ratios
 
   
(In thousands, except for ratio %)
 
     
Q1 2019
     
Q4 2018
     
Q3 2018
     
Q2 2018
     
Q1 2018
     
Q4 2017
 
Non-Accrual Loans
 
$
5,670
   
$
7,221
   
$
11,093
   
$
10,763
   
$
10,619
   
$
13,036
 
Non-Accrual Loans as a % of Total Loans
   
0.24
%
   
0.31
%
   
0.49
%
   
0.50
%
   
0.60
%
   
0.78
%
ALLL as % of Non-Accrual Loans
   
405.71
%
   
309.64
%
   
193.85
%
   
191.79
%
   
172.68
%
   
133.28
%
Impaired Loans
   
40,533
     
42,408
     
47,251
     
50,899
     
36,199
     
37,786
 
Classified Loans
   
23,977
     
26,161
     
30,179
     
33,605
     
20,299
     
21,730
 


8
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