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Press Release

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

Company Release - 1/31/2019 4:15 PM ET

BAYONNE, N.J., Jan. 31, 2019 (GLOBE NEWSWIRE) -- 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  $19,3888.5%45.7%
Mortgage-backed securities 791   827   648(4.4%)22.1%
Municipal bonds and other debt 191   116   16764.7%14.4%
FHLB stock dividends and other interest earning assets 1,263   1,009   43825.2%188.4%
Total interest and dividend income 30,488   27,971   20,6419.0%47.7%
           
Interest expense:          
Deposits:          
Demand 1,412   1,130   76625.0%84.3%
Savings and club 126   116   988.6%28.6%
Certificates of deposit 5,674   4,591   2,40123.6%136.3%
  7,212   5,837   3,26523.6%120.9%
Borrowings 2,105   2,054   7342.5%186.8%
Total interest expense 9,317   7,891   3,99918.1%133.0%
           
Net interest income 21,171   20,080   16,6425.4%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   16,3176.1%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   1585.7%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   2,0892.4%22.1%
Data processing service fees 876   942   713(7.0%)22.9%
Professional fees 462   437   5975.7%(22.6%)
Director fees 158   192   115(17.7%)37.4%
Regulatory assessments 487   419   11716.2%316.2%
Advertising and promotional 108   129   58(16.3%)86.2%
Other real estate owned, net 59   22   81168.2%(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   5,79714.9%31.5%
Income tax provision 2,401   2,040   4,45817.7%(46.1%)
           
Net Income$5,224  $4,594  $1,33913.7%290.1%
Preferred stock dividends 262   263   165(0.4%)58.8%
Net Income available to common stockholders$4,962  $4,331  $1,17414.6%322.7%
           
Net Income per common share-basic and diluted          
Basic$0.31  $0.27  $0.0814.8%287.5%
Diluted$0.31  $0.27  $0.0814.8%287.5%
           
Weighted average number of common shares outstanding          
Basic 15,820   15,789   15,0370.2%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$97,8314.75% $1,591,339$73,3354.61%
Investment Securities 142,343 3,7612.64%  104,520 2,9042.78%
Interest-earning deposits 142,867 3,5052.45%  77,399 1,3121.70%
Total Interest-earning assets 2,345,397 105,0974.48%  1,773,258 77,5714.37%
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  $2,0360.61% $305,208$1,6660.55%
Money market accounts 118,109 2,2781.21%  135,202 1,1500.85%
Savings accounts 262,745 4440.17%  263,500 3970.15%
Certificates of Deposit 911,141 16,4001.80%  619,377 8,8381.43%
Total interest-bearing deposits 1,696,151 21,1581.25%  1,323,287 12,0510.91%
Borrowed funds 262,227 6,2582.39%  160,699 3,6362.26%
Total interest-bearing liabilities 1,958,378 27,4161.40%  1,483,985 15,6871.06%
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$28,2434.94% $1,655,570$19,3884.68%
Investment Securities 141,248 9822.78%  112,357 8152.90%
Interest-earning deposits 187,051 1,2632.70%  99,785 4381.76%
Total Interest-earning assets 2,616,672 30,4884.66%  1,867,713 20,6414.42%
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  $6340.73% $312,901$4310.55%
Money market accounts 214,278 7781.45%  143,690 3350.94%
Savings accounts 261,526 1260.19%  259,156 980.15%
Certificates of Deposit 1,063,045 5,6742.13%  651,334 2,4011.47%
Total interest-bearing deposits 1,888,580 7,2121.53%  1,367,080 3,2650.96%
Borrowed funds 311,663 2,1052.70%  163,733 7341.79%
Total interest-bearing liabilities 2,220,243 9,3171.69%  1,530,813 3,9991.04%
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 2018Q3 2018Q2 2018Q1 2018Q4 2017Q3 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 2018Q3 2018Q2 2018Q1 2018Q4 2017Q3 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 2018Q3 2018Q2 2018Q1 2018Q4 2017Q3 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 2018Q3 2018Q2 2018Q1 2018Q4 2017Q3 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 
                   

Contact:

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

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Source: BCB Bancorp, Inc.