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Press Release

BCB Bancorp, Inc. Reports Second Quarter 2020 Net Income of $2.7 Million; Results Reflect Effects of COVID-19; Declared Quarterly Cash Dividend of $0.14 Per Share

Company Release - 7/27/2020 4:24 PM ET

BAYONNE, N.J., July 27, 2020 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $2.7 million for the second quarter of 2020, compared to $2.5 million in the first quarter of 2020, and $5.2 million for the second quarter of 2019. Earnings per diluted share for the second quarter of 2020 were $0.14, compared to $0.12 in the preceding quarter and $0.30 in the second quarter of 2019. For the first six months of the year, net income was $5.2 million, or $0.26 per diluted common share, compared with $10.7 million, or $0.62 per diluted common share, for the first six months of 2019.

The Company’s Board of Directors declared a quarterly cash dividend of $0.14 per share on July 8, 2020. The dividend will be payable August 21, 2020 to shareholders of record August 7, 2020. The current annualized dividend yield is 6.45 percent, based upon the Company’s closing price on July 20, 2020.

“Our second quarter results reflect strong loan and deposit growth in an unprecedented operating environment.  Earnings for the quarter, however, were affected by a number of items including the impact of the COVID-19 pandemic on the economy, and the subsequent increase in our loan loss reserve, as well as the low interest rate environment” stated Thomas Coughlin, President and Chief Executive Officer. “While our asset quality at quarter end remained solid, we evaluated factors related to the COVID-19 pandemic and its impact on our New Jersey and New York markets. Consequently, we recorded $3.3 million to our provision for loan losses in the second quarter, due to the risk of potential loan defaults directly related to COVID-19 factors, bringing our total reserves to $28.8 million.

“The safety and well-being of our customers and employees remains a top priority,” Coughlin continued. “We have taken a structured approach to resuming all branch activity and are still encouraging the use of drive-up services and ATM machines, Digital Banking and Call Center operations. Our employees will continue to primarily work remotely while maintaining our high level of customer service.

“Our participation in the Paycheck Protection Program (“PPP”) offered through the Small Business Administration (“SBA”) helped service the needs of our business customers,” said Coughlin.  “As a result, through July 17, 2020 we have helped approximately 1,000 customers receive $127 million in PPP funding.  We are also assisting small businesses with other borrowing options as they become available, including the Main Street Lending Program and other government sponsored lending programs.”

Executive Summary

  • Net income was $2.7 million in the second quarter of 2020 compared to $5.2 million in the second quarter a year ago.
  • Earnings per diluted share were $0.14 in the second quarter of 2020, compared to $0.30 in the second quarter of 2019.
  • Total assets increased 9.1 percent to $2.987 billion at June 30, 2020 from $2.738 billion a year earlier.
  • Loans receivable, net of allowance for loan losses, increased by 1.9 percent, to $2.344 billion at June 30, 2020, from $2.300 billion a year earlier.
  • The provision for loan losses increased by $2.5 million, to $3.3 million for the second quarter of 2020, from $755,000 for the second quarter of 2019, primarily due to factors related to the COVID-19 pandemic.
  • Allowance for loan losses as a percentage of non-accrual loans was 641.7 percent at June 30, 2020, compared to 433.5 percent at June 30, 2019.
  • Total deposits increased 10.6 percent, to $2.442 billion at June 30, 2020 from $2.208 billion a year ago.
  • On July 8, 2020 the Company’s Board of Directors declared a regular quarterly cash dividend of $0.14 per share. The dividend will be payable August 21, 2020, to common shareholders of record on August 7, 2020. 

Balance Sheet Review

Total assets increased by $44.9 million, or 1.5 percent, to $2.987 billion at June 30, 2020, from $2.942 billion at March 31, 2020, and increased by $248.7 million, or 9.1 percent, from $2.738 billion at June 30, 2019. The increase in total assets during the quarter mainly related to increases in loans receivable and investment securities, partly offset by a decrease in total cash and cash equivalents.

Loans receivable, net increased by $179.5 million, or 8.3 percent, to $2.344 billion at June 30, 2020 from $2.164 billion at March 31, 2020, and increased by $43.8 million, or 1.9 percent compared to $2.300 billion at June 30, 2019. The increase in loans during the quarter included $48.4 million of purchased loans and $127 million from the Bank’s participation in the federal PPP loan program. The growth in total loans during the first six months of 2020 included increases of $131.6 million in commercial business loans, which include PPP loans, $37.0 million in commercial real estate and multi-family loans, and $6.4 million in construction loans, partly offset by decreases of $1.1 million in home equity loans, $910,000 in residential one-to-four family loans, and $79,000 in consumer loans.

Total investment securities increased by $43.2 million, or 44.5 percent, to $140.2 million at June 30, 2020 from $97.0 million at March 31, 2020, representing purchases of $56.5 million in securities, partly offset by repayments, calls, and maturities.

Total deposits increased by $66.5 million, or 2.8 percent, to $2.442 billion at June 30, 2020, from $2.376 billion at March 31, 2020, and increased by $234.1 million, or 10.6 percent, from $2.208 billion at June 30, 2019. The increases in deposits was primarily related to the continued maturation of the branches opened over the last four years as well as the funds provided to certain depositors as a result of the PPP loan program. Total increases for the first six months of 2020 included $119.2 million in non-interest-bearing deposit accounts, $78.0 million in NOW deposit accounts, $15.0 million in savings and club accounts, and $13.3 million in money market checking accounts, partly offset by a decrease of $145.4 million in certificates of deposit (“CD’s”), including listing service and brokered deposit accounts. Listing service and brokered reciprocal certificates of deposit, which were used as additional sources of deposit liquidity to fund loan growth, totaled $3.9 million and $69.1 million, respectively, at June 30, 2020.

Stockholders’ equity increased by $381,000, or 0.2 percent, to $241.0 million at June 30, 2020 from $240.6 million three months earlier, and increased $19.9 million, or 9.0 percent, from $221.2 million a year ago. Additional paid-in-capital  increased $3.6 million to $219.1 million at June 30, 2020 from $215.5 million at March 31, 2020, and increased $17.3 million compared to $201.8 million at June 30, 2019. The increases primarily related to the issuance of $3.1 million of Series H preferred stock in the second quarter of 2020 and the issuance of $12.5 million of common stock in the fourth quarter of 2019. Treasury stock increased $3.6 million to $26.9 million at June 30, 2020 from $23.3 million at March 31, 2020, and increased $4.9 million compared to $22.0 million at June 30, 2019, reflecting the repurchase of Company common shares. Accumulated other comprehensive income increased $453,000 to $724,000 at June 30, 2020 from $271,000 at March 31, 2020, and increased $2.7 million when compared to a loss of $1.9 million at June 30, 2019 related to significant improvements in the value of available-for-sale securities, as a result of the general decrease in market interest rates.

Second Quarter 2020 Income Statement Review

Net interest income decreased by $2.9 million, or 13.8 percent, to $18.0 million for the second quarter of 2020 from $20.9 million for the second quarter of 2019. The decrease in net interest income resulted primarily from a decrease in the average yield on interest-earning assets of 95 basis points to 3.71 percent for the second quarter of 2020, from 4.66 percent for the second quarter of 2019, which was partly offset by an increase in the average balance of interest-earning assets of $296.5 million, or 11.2 percent, to $2.934 billion for the second quarter of 2020, compared to $2.638 billion for the second quarter of 2019. Interest expense decreased related to a decrease in the average rate on interest-bearing liabilities of 25 basis points to 1.55 percent for the second quarter of 2020 from 1.80 percent for the second quarter of 2019, partly offset by an increase in the average balance of interest-bearing liabilities of $185.8 million, or 8.5 percent, to $2.380 billion for the second quarter of 2020 from $2.194 billion for the second quarter of 2019. The Company has been aggressively managing the cost of funds and it anticipates the opportunity for further reductions. Approximately $480 million of certificates of deposit, with an average rate of 2.19%, will mature in the next four months and is projected to be replaced at significantly lower rates.  The lower rates for interest income and interest expense were driven by the reduction of the federal funds rate by 225 basis points during the second half of 2019 and first quarter of 2020 and average rates for interest income were affected by the inclusion of PPP loans at 1%. Interest income on loans also included $271,000 of amortization of purchase credit fair value adjustments related to the acquisition of IA Bancorp (“IAB”) for the three months ended June 30, 2020, which added approximately four basis points to the average yield on interest earning assets.

Net interest margin was 2.45 percent for the second quarter of 2020, compared to 2.63 percent for the first quarter of 2020 and 3.16 percent for the second quarter of 2019. The primary factor in the net interest margin decrease from the first quarter to the second quarter was the effect of the Fed rate reductions towards the end of the first quarter of 2020, which was an average 120 basis point drop on $551 million in average interest-earning deposits, and served to lower the net interest margin by 23 basis points.  Interest income recorded from non-accruing loans in the first quarter, and the addition of $127 million in PPP loans earning one percent in the second quarter, resulted in a net decrease of approximately nine basis points for these two items when comparing the second and first quarters. The Bank substantially reduced deposit rates late in the second quarter, the impact of which was not immediately recognized in the margin calculation.  The deposit rate reductions, combined with the CD maturity repricing coming in the last half of 2020, should generate an improvement in the net interest margin. “The net interest margin contraction during the second quarter also resulted from high levels of liquidity that are earning record low rates, the current volatile financial market attributable to the COVID-19 pandemic and the resulting low interest rate environment. We believe that the effective execution of these initiatives should begin to raise the net interest margin in near future quarters,” said Coughlin.

Total non-interest income decreased by $220,000, or 16.6 percent, to $1.1 million for the second quarter of 2020, from $1.3 million for the second quarter of 2019. The decrease in total non-interest income was mainly related to a decrease of $380,000 in gains on sales of loans, a decrease of $265,000 in fees and service charges, partially offset by a net increase of $468,000 in unrealized gains on equity securities. The lower level of loan sales was attributable to the curtailment of loan growth, while unrealized gains or losses on equity securities are based on market conditions. The decline in fees and service charges related in part to the pandemic condition as well as lower servicing fee income resulting from fewer loan sales.

Total non-interest expense decreased by $1.9 million, or 14.0 percent, to $12.0 million for the second quarter of 2020 from $13.9 million for the second quarter of 2019. Salaries and employee benefits expense decreased by $1.2 million, or 17.9 percent, to $5.7 million for the second quarter of 2020 from $6.9 million for the second quarter of 2019, primarily related to $1.1 million of costs deferred for PPP loans and fewer full-time equivalent employees, partly offset by traditional annual compensation increases. Occupancy and equipment expense increased by $261,000, or 9.9 percent, to $2.9 million for the second quarter of 2020, from $2.6 million for the second quarter of 2019, largely related to costs incurred for an upcoming de novo branch set to open later in the year, as well as the opening of two de novo branches and the relocation of one of our existing branches during 2019. Data processing and service fees increased by $220,000, or 30.1 percent, to $951,000 for the second quarter of 2020 from $731,000 for the second quarter of 2019. The increase was largely attributable to additional branches and system applications. Regulatory assessments decreased by $166,000, or 39.8 percent, to $251,000 for the second quarter of 2020 from $417,000 for the second quarter of 2019. The decrease was primarily due to a decrease in the FDIC assessment rate, partly offset by an increase in the FDIC assessment base.

The income tax provision decreased by $1.2 million, or 51.6 percent, to $1.1 million for the second quarter of 2020 from $2.3 million for the second quarter of 2019. The decrease in the income tax provision was a result of lower taxable income for the second quarter of 2020 as compared with that same period for 2019. The consolidated effective tax rate for the second quarter of 2020 was 29.1 percent compared to 30.7 percent for the second quarter of 2019. The lower rate in the current period related primarily to a one percent reduction in the New Jersey surtax rate.

Year to Date Income Statement Review

Net interest income decreased by $5.0 million, or 12.0 percent, to $36.8 million for the first six months of 2020 from $41.8 million for the first six months of 2019. Net interest margin was 2.54 percent for the first six months of 2020 and 3.17 percent for the first six months of 2019. The decrease in net interest income resulted primarily from a decrease in the average yield on interest-earning assets of 74 basis points to 3.91 percent for the six months ended June 30, 2020 from 4.65 percent for the six months ended June 30, 2019, partly offset by an increase in the average balance of interest-earning assets of $262.8 million, or 10.0 percent, to $2.896 billion for the six months ended June 30, 2020 from $2.633 billion for the six months ended June 30, 2019. Interest expense increased related to an increase in the average balance of interest-bearing liabilities of $185.5 million, or 8.4 percent, to $2.387 billion for the six months ended June 30, 2020 from $2.201 billion for the six months ended June 30, 2019, partly offset by a decrease in the average rate on interest-bearing liabilities of 11 basis points to 1.66 percent for the six months ended June 30, 2020 from 1.77 percent for the six months ended June 30, 2019. The decrease in the net interest margin was the result of the current volatile financial markets attributable to the COVID-19 pandemic, the low interest rate environment and high levels of liquidity that are earning record low rates. Interest income on loans also included $736,000 of amortization of purchase credit fair value adjustments related to the acquisition of IAB for the six months ended June 30, 2020, which added approximately four basis points to the average yield on interest earning assets.

Total non-interest income decreased by $1.2 million, or 40.1 percent, to $1.8 million for the first six months of 2020 from $3.0 million for the first six months of 2019. The decrease in total non-interest income was mainly related to a decrease of $637,000 in gains on sales of loans, a decrease of $422,000 in fees and service charges, a decrease of $263,000 in unrealized gains on equity securities, and a decrease of $107,000 in gains on sales of impaired loans, partly offset by an increase in other non-interest income of $266,000. The lower level of loan sales was attributable to the curtailment of loan growth, while unrealized gains or losses on equity securities are based on market conditions. The decline in fees and service charges related in part to the pandemic condition as well as lower servicing fee income resulting from fewer loan sales. The increase in other non-interest income related primarily to the reversal of certain liabilities previously recorded for IAB acquired loans that paid during the first six months of 2020.

Total non-interest expense decreased by $1.4 million, or 4.9 percent, to $26.3 million for the first six months of 2020 from $27.7 million for the first six months of 2019. Salaries and employee benefits expense decreased by $762,000, or 5.5 percent, to $13.1 million for the first six months of 2020 from $13.8 million for the first six months of 2019, primarily related to $1.1 million of costs deferred for PPP loans and fewer full-time equivalent employees, partly offset by normal compensation increases. The PPP costs deferred represent current period salaries and benefit costs associated with direct PPP loan origination costs, which are amortized over the life of the loan.

The income tax provision decreased by $2.6 million, or 53.9 percent, to $2.2 million for the first six months of 2020 from $4.8 million for the first six months of 2019. The decrease in the income tax provision was a result of lower taxable income for the first six months of 2020 as compared to that same period for 2019. The consolidated effective tax rate for the first six months of 2020 was 29.5 percent compared to 30.8 percent for the same period of 2019. The lower rate in the current period related primarily to a one percent reduction in the New Jersey surtax rate.

Asset Quality

The provision for loan losses increased by $2.5 million, to $3.3 million for the second quarter of 2020, compared to $755,000 for the second quarter of 2019, primarily due to factors related to the COVID-19 pandemic. In the first quarter of 2020, the provision for loan losses was $1.5 million. Year-to-date, the provision for loan losses increased by $3.2 million to $4.8 million for the first six months of 2020 from $1.6 million for the first six months of 2019.

The Bank had non-accrual loans totaling $4.5 million, or 0.19 percent, of gross loans at June 30, 2020 compared to $5.5 million, or 0.24 percent, of gross loans a year ago, and $4.4 million, or 0.20 percent of gross loans, at March 31, 2020.

Performing troubled debt restructured (“TDR”) loans that were not included in nonaccrual loans at June 30, 2020, were $16.2 million, compared to $16.3 million at March 31, 2020 and $21.8 million at June 30, 2019.  Borrowers who are in financial difficulty and who have been granted concessions (excluding COVID-19 modifications) that may include interest rate reductions, term extensions, or payment alterations are categorized as TDR loans. 

The allowance for loan losses was $28.8 million, or 1.22 percent of gross loans, at June 30, 2020, as compared to an allowance for loan losses of $23.8 million, or 1.02 percent of gross loans, at June 30, 2019.

During the second quarter of 2020, the Company recognized $7,000 in net recoveries compared to $30,000 in net recoveries for the second quarter of 2019 and $300,000 in net recoveries during the first quarter of 2020.

The temporary COVID-19 pandemic has clearly caused disruption to the global economy, but the extent and duration of the disruption is uncertain at this time. Management will continue to monitor the activity for loan deferment requests and delinquencies on a regular basis.

COVID-19 Overview:

With the global outbreak of COVID-19 and the declaration of a pandemic by the World Health Organization on March 11, 2020, the Company remains focused on protecting the health and well-being of its employees and the communities in which it operates while assuring the continuity of its business operations.

The Company activated its dedicated pandemic team that proactively implemented its business continuity plans and has taken a variety of measures to ensure the ongoing availability of services, while taking health and safety measures, including enhanced cleaning and hygiene protocols in all of its facilities and remote work policies, where possible. To date, as a result of these business continuity measures, the Company has not experienced significant disruptions in its operations. 

“We believe we have sufficient liquidity on hand to continue business operations during this volatile period,” said Coughlin.  As of June 30, 2020, the Company had over $400 million of cash on hand and available wholesale borrowing capacity of over $700 million.”

COVID-19 Response

Operational Initiatives

  • The Pandemic response team meets on a weekly basis and actively monitors guidance released by regulators, and banking associations.
  • In-person meetings are closely managed and are held on an as needed basis only.
  • Employees are working remotely, temporarily relocated or are working alternate days to increase social distancing.
  • Branch and operational offices are cleaned and sanitized weekly. This practice will continue until further notice. Employees have access to masks, gloves and disinfectant.
  • Most branch lobbies are open to the public. Masks are required for entry and social distancing is strictly enforced.  
  • Management provides updates to employees on a regular basis.
  • The Call Center is open seven days a week to assist with customer inquiries.

Allowance for Loan Losses (“ALLL”)

  • Although several of the Company’s asset quality metrics have not been adversely affected in a significant manner during the first six months of 2020, management determined it is prudent to increase its loan loss reserves through the addition of $3.3 million and $4.8 million in loan loss provisions for the three and six-month periods ended June 30, 2020, respectively,  due primarily to the economic downturn as a result of the COVID-19 pandemic. This compares to $755,000 and $1.6 million in loan loss provisions for the three and six-month periods ended June 30, 2019, respectively. The loan loss reserve to total loans ratio was 1.22 percent at June 30, 2020 compared to 1.02 percent at June 30, 2019. The increased reserve includes provisions taken in response to changes in risks associated with loan classification assignments and a declining economy in New Jersey and New York.
  • The Bank considered qualitative factors, such as changes in underwriting policies, current economic conditions, delinquency statistics, the adequacy of the underlying collateral and the financial strength of borrowers. All of these factors are likely to be affected by the COVID-19 pandemic. Individual deferred loans were stress tested to assess potential credit risks. Based upon a review of this assessment, management determined that probable COVID-19 related losses that can be reasonably estimated approximated $4.8 million.  The impact of COVID-19 is likely to be felt over the next several quarters. Adjustments to the ALLL may be required as the full impact of COVID-19 on the Bank’s borrowers’ capacity to make payments and the value of the underlying collateral becomes known.

Loan Deferments

  • The Bank, like other financial institutions, has received a significant number of requests to defer principal and/or interest payments, and has agreed to such deferrals or is in the process of doing so on a case by case basis. The banking regulatory agencies, through an Interagency Statement dated April 7, 2020, are encouraging financial institutions to work prudently with borrowers who request loan modifications or deferrals as a result of COVID-19.
  • The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provided over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. Under Section 4013 of the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. A financial institution can then suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a troubled debt restructuring (“TDR”), and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes. These loans are accruing interest, but the Bank is reserving for these loans separately.
  • The Bank began receiving requests for loan deferments on March 13, 2020. The forbearance period provided by the Bank is generally three months with the Bank retaining the sole option to extend the forbearance period for an additional three months. Payments received upon the expiration of the forbearance period will first be applied to interest accrued, then towards escrow advances, and any remaining amount towards principal.

The following is a summary of deferments by loan type (dollars in thousands):

               
 June 30, 2020  July 21, 2020
 Number of
Loans
 Balance Weighted
Average Interest
Rate
  Number of
Loans
 Balance Weighted
Average Interest
Rate
  
Residential one-to-four family131 $50,073 4.3% 69 $27,979 4.5% 
Commercial and multi-family371  473,861 4.4  284  384,736 4.4  
Construction3  17,959 5.5  4  13,645 5.5  
Commercial business81  32,185 5.7  63  33,077 5.7  
Home equity35  4,388 4.6  20  2,229 4.8  
 621 $578,466 4.6% 440 $461,666 4.5% 

Loan deferments peaked at $730.1 million in mid-June. The Company has worked diligently with our customers by reaching out to them as the end of the three-month deferral term was approaching, and to understand the need for any prudent requests of an extension of the deferral period. The Company has been encouraged with the results as we have experienced a 37% decline in loan deferment balances through July 21 since the peak in June. The remaining deferred loans will reach the end of their deferrals as follows:

Loan Deferment Maturities
(in Thousands)
                  
 Through
July 31 
 August  September  October  November  Total 
Call Report Categories                 
1st Deferment                 
Commercial construction and land loans$2,692 $- $9,969 $1,877 $- $14,538
Home equity lines of credit 212  1,191  -  -  -  1,403
Primary residential mortgage 1,140  35,757  9,478  1,796  269  48,440
Junior lien loan on residence 385  425  102  52  -  964
Multifamily property 314  19,812  992  350  -  21,468
Owner-occupied commercial real estate 2,880  52,613  975  3,439  -  59,907
Investment commercial real estate 18,759  115,428  13,431  1,059  140  148,817
Commercial and industrial 341  7,208  8,323  -  -  15,872
Consumer and other loans   -     98    -     -     -     98
Total$26,723 $232,532 $43,270 $8,573 $409 $311,507
                  
                  
2nd Deferment                 
Commercial construction and land loans$- $- $- $- $- $-
Home equity lines of credit -  -  250  69  60  379
Primary residential mortgage -  2,410  947  10,540  1,670  15,567
Junior lien loan on residence -  -  -  250  32  282
Multifamily property -  3,447  2,011  15,747  227  21,432
Owner-occupied commercial real estate -  1,909  4,530  27,544  12,139  46,122
Investment commercial real estate -  5,604  2,253  34,305  15,288  57,450
Commercial and industrial -  225  525  7,302  875  8,927
Consumer and other loans -  -  -  -  -  -
Total$- $13,595 $10,516 $95,757 $30,291 $150,159
                  
Total Loan Deferments$   26,723  $   246,127  $   53,786  $   104,330  $  30,700  $   461,666

Management continues to perform detail stress testing of loan deferments related to various loan to value and cash flow scenarios. The specific ALLL reserves allocated to these stress tests are adequate and will continue to be analyzed as the economic conditions progress.

Paycheck Protection Program (PPP) 

  • As a qualified Small Business Association (“SBA”) lender, we were automatically authorized to originate PPP loans.
  • Due to the volume of applications received, the Bank had to suspend accepting any additional requests for PPP loans as of April 10, 2020, but resumed the program shortly thereafter.
  • Through July 15, 2020, the Bank had closed and funded approximately $127 million for almost 1,000 PPP loans.
  • The Company had received approximately $4.2 million of processing fees from the SBA through June 30, 2020. These fees, net of direct costs relating to the origination of these loans, have been deferred and are being amortized over the life of the loans. The amount of net deferred fees recorded to interest income through June 30, 2020 was approximately $275,000. Loan forgiveness payments will be treated as prepayments and recognized as they occur. It is now likely that the majority of loan forgiveness will occur in 2021, as the SBA recently extended the period that borrowers can spend the funds from eight weeks to 24 weeks. Once the customer applies for the forgiveness, the Company then has 60 days to approve and then the SBA has 90 days to approve on its end. The Company anticipates recognizing $370,000 of net deferred fee income in each of the third and fourth quarters in 2020, excluding any amounts resulting from loan forgiveness.

Main Street Lending Program

  • The Main Street Lending Program is a program announced on April 9, 2020, under which the Federal Reserve will purchase loans that banks give to small and mid-sized businesses. The Fed will purchase 95% of each loan.
  • The program is designed to keep credit flowing to small and mid-sized businesses that were in good financial standing before the onset of the COVID-19 crisis, but which are now under extreme stress due to stay-at-home and business closure orders from state and local governments. The Bank has been approved as an eligible lender, and has received inquiries since the program became operational on July 8, 2020.

Industry Exposure 
      ·The Company has identified various industries that may be particularly adversely impacted by the COVID-19 pandemic. Though the hotspots may change through the progression of the pandemic, the following sectors are currently being disproportionately impacted: Strip Retail, Hospitality/Hotels, Golf Courses and Banquet Halls, Restaurants, and Retail. At June 30, 2020, the Bank’s portfolio and deferment balances for these industries, as a percent of the total loan portfolio, were as follows: 

            
Description Portfolio
Balance
($000’s)
 Percentage
of Loan
Portfolio
  Deferment
Balance
($000’s)
 Percentage
of Loan
Portfolio
Strip Retail$124,831 5% $68,134 3%
Hospitality/Hotels 71,407 3   32,032 1 
Golf Courses and Banquet Halls 49,835 2   17,789 1 
Restaurant (standalone) 43,972 2   17,261 1 
Retail (one-to-three units) 71,519 3   14,158 1 
 $361,564 15% $149,374 7%

IT Changes

  • To protect the well-being of our staff and customers, the Company has set up resources for some employees to work from home. To facilitate the move, we allocated laptop computers to staff and enhanced our ability to access the network offsite.

Liquidity and Capital Resources

  • The Company was well positioned with adequate levels of cash and liquid assets as of June 30, 2020, as well as wholesale borrowing capacity of over $700 million, to cover the lack of payments for COVID-19 loan deferments. At June 30, 2020, the Company’s equity to asset ratio was 8.1% and the Bank’s capital was in excess of regulatory requirements. The Company issued $3.1 million of Series H 3.5% preferred stock in the second quarter of 2020, which will serve to replace most of the scheduled redemption of $3.9 million of Series C 6.0% preferred stock in August, 2020. The Company had $4.9 million of stock repurchases for the first six months of 2020, and the program concluded in May, 2020. The Company will continue to monitor the effects of COVID-19 in determining future cash dividends and any requirement for additional capital each quarter.

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 31 branch offices in Bayonne, Carteret, Colonia, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lodi, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, three branches in Hicksville and Staten Island, New York, and a loan production office in Hoboken. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services.  For more information, please go to www.bcb.bank.

In September 2019, the Company announced its inclusion into the prestigious Sandler O'Neill Sm-All Stars Class of 2019, an elite group of 30 publicly traded small-cap banks and thrifts, based on growth, profitability, credit quality and capital strength.

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 release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: 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 the Bank’s 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.

As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company could be subject to any of the following additional risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:

  • demand for our products and services may decline, making it difficult to grow assets and income;
  • if the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income;
  • collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase;
  • our allowance for loan losses may have to be increased if borrowers experience financial difficulties beyond forbearance periods, which will adversely affect our net income;
  • the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us;
  • as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income;
  • a material decrease in net income over several quarters could result in a decrease in the rate of our quarterly cash dividend;
  • our cyber security risks are increased as the result of an increase in the number of employees working remotely;
  • we rely on third party vendors for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have an adverse effect on us; and
  • FDIC premiums may increase if the agency experiences additional resolution costs.

Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods in question.

The Company provides measurements and ratios based on tangible stockholders' equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

 Statements of Income (unaudited) - Three Months Ended,  
 June 30, 2020March 31, 2020June 30, 2019June 30, 2020 vs. March 31,
2020
June 30, 2020 vs. June 30,
2019
Interest and dividend income: (In thousands, except share amounts)  
Loans, including fees$  26,123 $26,814 $28,634 -2.6%-8.8%
Mortgage-backed securities   494  563  738 -12.3%-33.1%
Other investment securities   246  8  197 2975.0%24.9%
FHLB stock and other interest earning assets   343  2,034  1,173 -83.1%-70.8%
  Total interest and dividend income   27,206  29,419  30,742 -7.5%-11.5%
      
Interest expense:     
Deposits:     
Demand   1,562  2,208  1,750 -29.3%-10.7%
Savings and club   106  105  110 1.0%-3.6%
Certificates of deposit   5,695  6,432  6,097 -11.5%-6.6%
    7,363  8,745  7,957 -15.8%-7.5%
Borrowings   1,852  1,896  1,920 -2.3%-3.5%
  Total interest expense   9,215  10,641  9,877 -13.4%-6.7%
      
Net interest income   17,991  18,778  20,865 -4.2%-13.8%
Provision for loan losses   3,300  1,500  755 120.0%337.1%
      
Net interest income after provision for loan losses   14,691  17,278  20,110 -15.0%-26.9%
      
Non-interest income:     
Fees and service charges   537  726  802 -26.0%-33.0%
Gain on sales of loans   57  61  437 -6.6%-87.0%
Gain on sales of other real estate owned   -   -  45 0.0%-100.0%
Gain on sale of investment securities   40  -  21 0.0%90.5%
Unrealized gain (loss) on equity investments   442  (440) (26)200.5%1800.0%
Other   32  336  49 -90.5%-34.7%
  Total non-interest income   1,108  683  1,328 62.2%-16.6%
      
Non-interest expense:     
Salaries and employee benefits   5,682  7,389  6,918 -23.1%-17.9%
Occupancy and equipment   2,910  2,824  2,649 3.0%9.9%
Data processing and service fees   951  938  731 1.4%30.1%
Professional fees   398  470  473 -15.3%-15.9%
Director fees   365  358  316 2.0%15.5%
Regulatory assessment fees   251  321  417 -21.8%-39.8%
Advertising and promotional   26  61  123 -57.4%-78.9%
Other real estate owned, net   21  26  124 19.2%-83.1%
Other   1,348  1,977  2,143 -31.8%-37.1%
  Total non-interest expense   11,952  14,364  13,894 -16.8%-14.0%
      
Income before income tax provision   3,847  3,597  7,544 7.0%-49.0%
Income tax provision   1,121  1,076  2,317 4.2%-51.6%
      
Net Income   2,726  2,521  5,227 8.1%-47.8%
Preferred stock dividends   341  341  342 0.0%-0.3%
Net Income available to common stockholders$  2,385 $2,180 $4,885 9.4%-51.2%
      
Net Income per common share-basic and diluted     
Basic$  0.14 $0.12 $0.30 16.7%-53.3%
Diluted$  0.14 $0.12 $0.30 16.7%-53.3%
      
Weighted average number of common shares outstanding     
Basic   17,179  17,502  16,413 -1.8%4.7%
Diluted   17,183  17,551  16,471 -2.1%4.3%
      


 Statements of Income (unaudited) - Six Months Ended, 
 June 30, 2020June 30, 2019June 30, 2020 vs. June 30,
2019
Interest and dividend income: (In thousands, except share amounts) 
Loans, including fees$  52,937 $56,867-6.9%
Mortgage-backed securities   1,057  1,508-29.9%
Other investment securities   254  325-21.8%
FHLB stock and other interest earning assets   2,377  2,520-5.7%
  Total interest and dividend income    56,625  61,220-7.5%
    
 Interest expense:    
Deposits:   
Demand   3,770  3,32613.3%
Savings and club   211  223-5.4%
Certificates of deposit   12,127  12,0870.3%
    16,108  15,6363.0%
Borrowings   3,748  3,817-1.8%
  Total interest expense   19,856  19,4532.1%
    
Net interest income   36,769  41,767-12.0%
 Provision for loan losses    4,800  1,644192.0%
    
 Net interest income after provision for loan losses    31,969  40,123-20.3%
    
 Non-interest income:    
Fees and service charges   1,263  1,685-25.0%
Gain on sales of loans   118  755-84.4%
Gain on bulk sale of impaired loans held in portfolio   -   107-100.0%
Gain on sales of other real estate owned   -   53-100.0%
Gain on sale of investment securities   40  2190.5%
Unrealized gain on equity investments   2  265-99.2%
Other   368  102260.8%
  Total non-interest income    1,791  2,988-40.1%
    
 Non-interest expense:     
Salaries and employee benefits   13,071  13,833-5.5%
Occupancy and equipment   5,734  5,2798.6%
Data processing and service fees   1,889  1,45230.1%
Professional fees   868  1,006-13.7%
Director fees   723  63414.0%
Regulatory assessments   572  874-34.6%
Advertising and promotional   87  196-55.6%
Other real estate owned, net   47  108-56.5%
Other   3,325  4,289-22.5%
  Total non-interest expense    26,316  27,671-4.9%
    
 Income before income tax provision    7,444  15,440-51.8%
Income tax provision   2,197  4,762-53.9%
    
 Net Income    5,247  10,678-50.9%
Preferred stock dividends   682  6593.5%
 Net Income available to common stockholders $  4,565 $10,019-54.4%
    
 Net Income per common share-basic and diluted    
Basic$  0.26 $0.62-58.1%
Diluted$  0.26 $0.62-58.1%
    
 Weighted average number of common shares outstanding    
Basic   17,340  16,2456.7%
Diluted   17,366  16,2906.6%
    


Statements of Financial Condition (unaudited)June 30, 2020March 31, 2020June 30, 2019June 30, 2020 vs. March
31, 2020
June 30, 2020 vs. June 30,
2019
 ASSETS (In thousands, except share amounts)  
Cash and amounts due from depository institutions$  18,799  $24,292 $20,660 -22.6%-9.0%
Interest-earning deposits   393,450   570,894  206,982 -31.1%90.1%
Total cash and cash equivalents   412,249   595,186  227,642 -30.7%81.1%
      
Interest-earning time deposits   735   735  735 - - 
Debt securities available for sale   127,518   95,429  116,258 33.6%9.7%
Equity investments   12,683   1,580  5,901 702.7%114.9%
Loans held for sale   760   838  - -9.3%- 
Loans receivable, net of allowance for loan losses     
of $28,842, $25,534, and $23,789 respectively   2,343,593   2,164,057  2,299,765 8.3%1.9%
Federal Home Loan Bank of New York stock, at cost   13,529   14,586  13,821 -7.2%-2.1%
Premises and equipment, net   18,653   19,292  19,482 -3.3%-4.3%
Operating lease right-of-use asset   13,335   14,084  14,650 -5.3%-9.0%
Accrued interest receivable   16,569   8,936  9,315 85.4%77.9%
Other real estate owned   1,623   1,623  1,235 0.0%31.4%
Deferred income taxes   11,339   10,653  12,962 6.4%-12.5%
Goodwill and other intangibles   5,519   5,535  5,587 -0.3%-1.2%
Other assets   8,771   9,469  10,777 -7.4%-18.6%
  Total Assets $  2,986,876  $2,942,003 $2,738,130 1.5%9.1%
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
      
LIABILITIES     
Non-interest bearing deposits$  390,912  $293,174 $278,602 33.3%40.3%
Interest bearing deposits   2,051,321   2,082,547  1,929,620 -1.5%6.3%
Total deposits   2,442,233   2,375,721  2,208,222 2.8%10.6%
FHLB advances   242,800   262,800  245,800 -7.6%-1.2%
Subordinated debentures   36,926   36,868  36,693 0.2%0.6%
Operating lease liability   13,521   14,246  14,724 -5.1%-8.2%
Other liabilities   10,377   11,730  11,538 -11.5%-10.1%
  Total Liabilities     2,745,857   2,701,365  2,516,977 1.6%9.1%
      
STOCKHOLDERS' EQUITY     
Preferred stock: $0.01 par value, 10,000,000 shares authorized   -    -  - - - 
Additional paid-in capital preferred stock   27,956   24,876  25,016 12.4%11.8%
Common stock: no par value, 40,000,000 shares authorized   -    -  - - - 
Additional paid-in capital common stock   191,160   190,658  176,767 0.3%8.1%
Retained earnings   48,097   48,168  43,347 -0.1%11.0%
Accumulated other comprehensive (loss)   724   271  (1,929)167.2%-137.5%
Treasury stock, at cost   (26,918) (23,335) (22,048)15.4%22.1%
  Total Stockholders' Equity    241,019   240,638  221,153 0.2%9.0%
      
  Total Liabilities and Stockholders' Equity $  2,986,876  $2,942,003 $2,738,130 1.5%9.1%
      
Outstanding common shares   17,057     17,407   16,461 -2.0%3.6%
      


 Three Months Ended June 30,
  2020   2019 
 Average BalanceInterest Earned/PaidAverage Yield/Rate (3) Average BalanceInterest Earned/PaidAverage Yield/Rate (3)
  
 (Dollars in thousands)
Interest-earning assets:       
Loans Receivable$  2,276,740 $  26,123 4.59% $2,329,209$28,6344.92%
Investment Securities 106,777 7402.77%  124,520 9353.00%
Interest-earning deposits 550,929 3430.25%  184,266 1,1732.55%
Total Interest-earning assets 2,934,446 27,2063.71%  2,637,995 30,7424.66%
Non-interest-earning assets 83,651    78,478  
Total assets$  3,018,097    $2,716,473  
Interest-bearing liabilities:       
Interest-bearing demand accounts$  466,565 $  797 0.68% $341,418$6480.76%
Money market accounts 327,533 7650.93%  253,633 1,1021.74%
Savings accounts 269,299 1060.16%  259,398 1100.17%
Certificates of Deposit 1,029,281 5,6952.21%  1,056,375 6,0972.31%
Total interest-bearing deposits 2,092,677 7,3631.41%  1,910,823 7,9571.67%
Borrowed funds 287,347 1,8522.58%  283,424 1,9202.71%
Total interest-bearing liabilities 2,380,024 9,2151.55%  2,194,247 9,8771.80%
Non-interest-bearing liabilities 399,638    304,681  
Total liabilities 2,779,662    2,498,928  
Stockholders' equity 238,435    217,545  
Total liabilities and stockholders' equity$  3,018,097    $2,716,473  
Net interest income $  17,991    $20,865 
Net interest rate spread(1)  2.16%   2.86%
Net interest margin(2)  2.45%   3.16%
        
        
(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.       


 Six Months Ended June 30,
  2020   2019 
 Average BalanceInterest Earned/PaidAverage Yield/Rate (3) Average BalanceInterest Earned/PaidAverage Yield/Rate (3)
  
 (Dollars in thousands)
Interest-earning assets:       
Loans Receivable$  2,230,683 $  52,937 4.75% $2,322,674$56,8674.90%
Investment Securities 99,542 13112.63%  125,139 18332.93%
Interest-earning deposits 565,776 2,3770.84%  185,368 2,5202.72%
Total Interest-earning assets 2,896,001 56,6253.91%  2,633,181 61,2204.65%
Non-interest-earning assets 79,193    70,550  
Total assets$  2,975,194    $2,703,731  
Interest-bearing liabilities:       
Interest-bearing demand accounts$  436,952 $  1,655 0.76% $341,538$1,2520.73%
Money market accounts 324,383 2,1151.30%  245,368 2,0741.69%
Savings accounts 264,510 2100.16%  259,958 2230.17%
Certificates of Deposit 1,074,671 12,1282.26%  1,070,757 12,0872.26%
Total interest-bearing deposits 2,100,516 16,1081.53%  1,917,621 15,6361.63%
Borrowed funds 286,089 3,7482.62%  283,442 3,8172.69%
Total interest-bearing liabilities 2,386,605 19,8561.66%  2,201,063 19,4531.77%
Non-interest-bearing liabilities 349,707    290,511  
Total liabilities 2,736,312    2,491,574  
Stockholders' equity 238,882    212,157  
Total liabilities and stockholders' equity$  2,975,194    $2,703,731  
Net interest income $  36,769    $41,767 
Net interest rate spread(1)  2.25%   2.88%
Net interest margin(2)  2.54%   3.17%
        
        
(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.       


 Financial Condition data by quarter
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019
      
 (In thousands, except tangible book value)
Total assets$2,986,876 $2,942,003 $2,907,468 $2,825,499 $2,738,130 
Cash and cash equivalents 412,249  595,186  550,353  376,611  227,642 
Securities 140,201  97,009  94,113  104,075  122,159 
Loans receivable, net 2,343,593  2,164,057  2,178,407  2,253,699  2,299,765 
Deposits 2,442,233  2,375,721  2,362,063  2,263,457  2,208,222 
Borrowings 279,726  299,668  282,610  312,552  282,493 
Stockholders’ equity 241,019  240,638  239,473  223,719  221,153 
Book value per common share1$14.13 $13.82 $13.67 $13.58 $13.43 
Tangible book value per share2$12.18 $12.09 $11.94 $11.72 $11.58 
      
 Operating data by quarter
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019
      
 (In thousands, except for per share amounts)
Net interest income$17,991 $18,778 $20,077 $20,760 $20,865 
Provision (credit) for loan losses 3,300  1,500  (475) 900  755 
Non-interest income 1,108  683  1,020  1,383  1,328 
Non-interest expense 11,952  14,364  14,260  13,652  13,894 
Income tax expense 1,121  1,076  2,188  2,359  2,317 
Net income$2,726 $2,521 $5,124 $5,232 $5,227 
Net income per diluted share$0.14 $0.12 $0.29 $0.30 $0.30 
Common Dividends declared per share$0.14 $0.14 $0.14 $0.14 $0.14 
      
 Financial Ratios3
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019
Return on average assets 0.36% 0.34% 0.72% 0.75% 0.77%
Return on average stockholder’s equity 4.57% 4.21% 9.12% 9.44% 9.61%
Net interest margin 2.45% 2.63% 2.88% 3.06% 3.16%
Stockholder’s equity to total assets 8.07% 8.18% 8.24% 7.92% 8.08%
Efficiency Ratio4 62.58% 73.81% 67.59% 61.65% 62.61%
      
 Asset Quality Ratios
 (In thousands, except for ratio %)
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019
Non-Accrual Loans$4,495 $4,362 $4,160 $5,074 $5,488 
Non-Accrual Loans as a % of Total Loans 0.19% 0.20% 0.19% 0.22% 0.24%
ALLL as % of Non-Accrual Loans 641.65% 585.37% 570.53% 486.62% 433.47%
Impaired Loans 26,839  23,022  26,912  30,856  37,275 
Classified Loans 13,584  9,882  13,483  15,998  22,679 
      
(1) Calculated by dividing stockholders' equity to shares outstanding.
(2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter”.
(3) Ratios are presented on an annualized basis, where appropriate.
(4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter”.


 Recorded Investment in Loans Receivable by quarter
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019
 (In thousands)
Residential one-to-four family$247,471 $268,137 $248,381 $252,971 $258,688 
Commercial and multi-family 1,643,954  1,577,816  1,606,976  1,668,982  1,702,132 
Construction 111,463  101,692  104,996  131,697  134,963 
Commercial business 309,284  177,146  177,642  161,649  164,569 
Home equity 63,481  64,857  64,638  63,645  63,927 
Consumer 603  1,029  682  728  727 
 $2,376,256 $2,190,677 $2,203,315 $2,279,672 $2,325,006 
Less:     
Deferred loan fees, net (3,821) (1,086) (1,174) (1,282) (1,452)
Allowance for loan loss (28,842) (25,534) (23,734) (24,691) (23,789)
      
Total loans, net$2,343,593 $2,164,057 $2,178,407 $2,253,699 $2,299,765 
      
 Non-Accruing Loans in Portfolio by quarter
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019
 (In thousands)
Originated loans:     
Residential one-to-four family$788 $788 $590 $814 $1,022 
Commercial and multi-family 218  218  761  1,584  1,881 
Commercial business 1,129  1,189  1,428  887  745 
Home equity 608  294  347  350  129 
Sub-total:$2,743 $2,489 $3,126 $3,635 $3,777 
      
Acquired loans initially recorded at fair value:    
Residential one-to-four family$544 $602 $291 $1,046 $1,116 
Commercial and multi-family 631  758  217  -  - 
Commercial business 513  513  513  378  378 
Home equity 64  -  13  15  217 
Sub-total:$1,752 $1,873 $1,034 $1,439 $1,711 
      
Total:$4,495 $4,362 $4,160 $5,074 $5,488 
      


 Distribution of Deposits by quarter
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019
 (In thousands)
Demand:     
Non-Interest Bearing$390,912$293,174$271,702$276,203$278,002
Interest Bearing 472,064 428,683 394,074 344,385 337,362
Money Market 319,113 321,973 305,790 272,139 267,213
Sub-total:$1,182,089$1,043,830$971,566$892,727$882,577
Savings and Club 275,567 260,291 260,545 256,531 257,774
Certificates of Deposit 984,577 1,071,600 1,129,952 1,114,199 1,067,871
Total Deposits:$2,442,233$2,375,721$2,362,063$2,263,457$2,208,222
      


 Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
      
 Tangible Book Value per Share
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019
 (In thousands, except per share amounts)
Total Stockholders' Equity$241,019 $240,638 $239,473 $223,719 $221,153 
Less: goodwill 5,253  5,253  5,253  5,570  5,587 
Less: preferred stock 27,956  24,876  25,016  25,016  25,016 
Total tangible stockholders' equity 207,810  210,509  209,204  193,133  190,550 
Shares outstanding 17,057  17,407  17,517  16,477  16,461 
Book value per share$14.13 $13.82 $13.67 $13.58 $13.43 
Tangible book value per share$12.18 $12.09 $11.94 $11.72 $11.58 
      
 Efficiency Ratios
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019
 (In thousands, except for ratio %)
Net interest income$17,991 $18,778 $20,077 $20,760 $20,865 
Non-interest income 1,108  683  1,020  1,383  1,328 
Total income 19,099  19,461  21,097  22,143  22,193 
Non-interest expense 11,952  14,364  14,260  13,652  13,894 
Efficiency Ratio 62.58% 73.81% 67.59% 61.65% 62.61%
      

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


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Source: BCB Bancorp, Inc.