EX-99 2 ex99_21209.txt PRESS RELEASE BCB Bancorp, Inc., Announces Annual Earnings Bayonne, N.J. - February 12, 2009 (BUSINESS WIRE) - BCB Bancorp, Inc., Bayonne, NJ (NASDAQ: BCBP - News) announced net earnings of $3.47 million for the year ended December 31, 2008 as compared to $4.44 million for the year ended December 31, 2007. Basic and diluted earnings per share were $0.75 and $0.74, respectively, for the year ended December 31, 2008 as compared to $0.92 and $0.90, respectively, for the year ended December 31, 2007. The weighted average number of common shares outstanding for the year ended December 31, 2008 for basic and diluted earnings per share calculations was 4,629,000 and 4,706,000 respectively. The weighted average number of shares outstanding for the year ended December 31, 2007 for basic and diluted earnings per share calculation purposes was 4,818,000 and 4,943,000. Total assets increased by $15.1 million or 2.7% to $578.6 million at December 31, 2008 from $563.5 million at December 31, 2007. Total cash and cash equivalents decreased by $5.0 million or 42.4% to $6.8 million at December 31, 2008 from $11.8 million at December 31, 2007. Securities held-to-maturity decreased by $23.7 million or 14.4% to $141.3 million at December 31, 2008 from $165.0 million at December 31, 2007. Loans receivable increased by $42.1 million or 11.5% to $406.8 million at December 31, 2008 from $364.7 million at December 31, 2007. Deposit liabilities increased by $11.7 million or 2.9% to $410.5 million at December 31, 2008 from $398.8 million at December 31, 2007. Total stockholders' equity increased by $1.2 million or 2.5% to $49.7 million at December 31, 2008 from $48.5 million at December 31, 2007. The increase in stockholders' equity primarily reflects net income of $3.5 million for the year ended December 31, 2008 and the exercise of stock options during the year to purchase 104,873 shares of the Company's common stock for a total of approximately $925,000, partially offset by the repurchase of 93,029 shares of the Company's common stock through the stock repurchase plans in place and effect through the year totaling $1.3 million and cash dividends paid through the year totaling $1.9 million. Net income decreased by $970,000 or 21.8% to $3.47 million for the year ended December 31, 2008 from $4.44 million for the year ended December 31, 2007. The decrease in net income resulted primarily from a decrease in non-interest income and increases in the provision for loan losses and non-interest expense, partially offset by an increase in net interest income and a decrease in income taxes. The decrease in non-interest income resulted primarily from an other than temporary impairment (OTTI) charge of $2.9 million on a $3.0 million investment in Federal National Mortgage Association (FNMA) preferred stock. The increase in non-interest expense resulted primarily from the discovery of a check kiting scheme by a commercial client of the Bank. The Bank recorded a $560,000 loss in other non-interest expense related to this incident. The Bank and Company anticipate that future recoveries may partially offset this loss, however there can be no assurance of the level or probability of any recovery. The Bank and the Company have notified its insurance carriers. Net interest income increased by $2.8 million or 16.3% to $20.0 million for the year ended December 31, 2008 from $17.2 million for the year ended December 31, 2007. The increase in net interest income resulted primarily from an increase of $37.7 million or 7.2% in the average balance of interest earning assets to $564.5 million for the year ended December 31, 2008 from $526.8 million for the year ended December 31, 2007 and an increase in the average yield on interest earning assets to 6.49% for the year ended December 31, 2008 from 6.53% for the year ended December 31, 2007. The average balance of interest bearing liabilities increased by $40.3 million or 8.9% to $490.7 million at December 31, 2008 from $450.4 million at December 31, 2007 while the average cost of interest bearing liabilities decreased to 3.40% for the year ended December 31, 2008 from 3.82% for the year ended December 31, 2007. As a result of the aforementioned, our net interest margin increased to 3.54% for the year ended December 31, 2008 from 3.26% for the year ended December 31, 2007. Donald Mindiak, President & CEO commented, "core business operational results recorded improvements during the year as net interest income increased by $2.8 million or 16.3% year over year. While several one-time items adversely affected our final operating results; the most significant of which was the OTTI charge on our FNMA preferred stock, asset and credit quality have held up well to the point where we have experienced negligible differences in delinquencies. Despite the aforementioned, we added an additional $1.3 million in loan loss reserves during the year to provide for the increased risk of loan losses resulting from the challenging economic and real estate environment and an increase in real estate owned to $1.4 million from $290,000." "The Bank and Company have applied for TARP funding from the Federal Government, however as of year end we have received no indication from the regulatory agencies as to the disposition of our application. We remain open to the prospect of utilizing this funding, however a final determination will be reached upon information being received from those agencies about the status of our application." Mr. Mindiak continued, "The Board of Directors, unanimously declared a quarterly cash dividend of $0.12/share, payable on Monday February 16, 2009, consistent with our prior quarter's amount which represents the Board's philosophy of providing our shareholders' with a competitive return on their investment. As financial institutions continue to manage the intricacies of this challenging operating environment, we will continue to research and explore initiatives that have the capacity of increasing franchise and shareholder value." BCB Community Bank presently operates four offices, three located in Bayonne and one located in Hoboken, New Jersey. Questions regarding the content of this release should be directed to either Donald Mindiak, President & CEO, or Thomas Coughlin, COO & Principal Accounting Officer at 201-823-0700. Forward-looking Statements and Associated Risk Factors 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. There are a number of factors, many of which are beyond our control, that could cause actual conditions, events, or results to differ significantly from those described in our forward-looking statements. These factors include, but are not limited to: general economic conditions and trends, either nationally or in some or all of the areas in which we and our customers conduct our respective businesses; conditions in the securities markets or the banking industry; changes in interest rates, which may affect our net income, prepayment penalties and other future cash flows, or the market value of our assets; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services in the markets we serve; changes in the financial or operating performance of our customers' businesses; changes in real estate values, which could impact the quality of the assets securing the loans in our portfolio; changes in the quality or composition of our loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; changes in our customer base; potential exposure to unknown or contingent liabilities of companies targeted for acquisition; our ability to retain key members of management; our timely development of new lines of business and competitive products or services in a changing environment, and the acceptance of such products or services by our customers; any interruption or breach of security resulting in failures or disruptions in customer account management, general ledger, deposit, loan or other systems; any interruption in customer service due to circumstances beyond our control; the outcome of pending or threatened litigation, or of other matters before regulatory agencies, or of matters resulting from regulatory exams, whether currently existing or commencing in the future; environmental conditions that exist or may exist on properties owned by, leased by, or mortgaged to the Company; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in legislation, regulation, and policies, including, but not limited to, those pertaining to banking, securities, tax, environmental protection, and insurance, and the ability to comply with such changes in a timely manner; changes in accounting principles, policies, practices, or guidelines; operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; the ability to keep pace with, and implement on a timely basis, technological changes; changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; war or terrorist activities; and other economic, competitive, governmental, regulatory, and geopolitical factors affecting our operations, pricing and services. It also should be noted that the Company occasionally evaluates opportunities to expand through acquisition and may conduct due diligence activities in connection with such opportunities. As a result, acquisition discussions and, in some cases, negotiations, may take place in the future, and acquisitions involving cash, debt, or equity securities may occur. Furthermore, the timing and occurrence or non-occurrence of these events may be subject to circumstances beyond the Company's control. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Except as required by applicable law or regulation, the Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made. Consolidated Statements of Financial Condition

December 31, ------------------------------ 2008 2007 ------------------------------ (In Thousands, except for share data and per share data) Assets Cash and amounts due from depository institutions $ 3,495 $ 2,970 Interest-bearing deposits 3,266 8,810 --------------- --------------- Cash and Cash Equivalents 6,761 11,780 Securities available for sale 888 2,056 Securities held to maturity, fair value $143,245 and $165,660 respectively 141,280 165,017 Loans held for sale 1,422 2,132 Loans receivable, net of allowance for loan losses of $5,304 and $4,065 respectively 406,826 364,654 Premises and equipment 5,627 5,929 Federal Home Loan Bank of New York stock 5,736 5,560 Interest receivable 3,884 3,776 Real Estate Owned 1,435 287 Deferred income taxes 3,113 1,352 Other assets 1,652 934 --------------- --------------- Total Assets $578,624 $563,477 =============== =============== Liabilities and Stockholders' Equity Liabilities Non-interest bearing deposits $30,561 $35,897 Interest bearing deposits 379,942 362,922 --------------- --------------- Total deposits 410,503 398,819 --------------- --------------- Short-term borrowings 2,000 - Long-term debt 114,124 114,124 Other liabilities 2,282 2,024 --------------- --------------- Total Liabilities 528,909 514,967 --------------- --------------- Stockholders' Equity Common stock, stated value $0.06; 10,000,000 shares authorized; 5,183,371 and 5,078,858 shares, respectively, issued 331 325 Paid-in capital 46,864 45,795 Treasury stock, at cost, 533,680 and 440,651 shares, respectively (8,680) (7,385) Retained earnings 11,325 9,749 Accumulated other comprehensive (loss) income (125) 26 --------------- --------------- Total Stockholders' Equity 49,715 48,510 --------------- --------------- Total Liabilities and Stockholders' Equity $578,624 $563,477 =============== ===============

Consolidated Statements of Income

Years Ended December 31, ------------------------------------------------------ 2008 2007 2006 -------------- -------------- -------------- (In Thousands, Except for Per Share Data) Interest Income Loans, including fees $27,248 $24,365 $22,770 Securities 9,185 8,843 8,046 Other interest-earning assets 190 1,182 445 ---------------- ---------------- --------------- Total Interest Income 36,623 34,390 31,261 ---------------- ---------------- --------------- Interest Expense Deposits: Demand 1,046 1,006 426 Savings and club 1,370 1,866 2,611 Certificates of deposit 9,106 10,109 7,807 ---------------- ---------------- --------------- 11,522 12,981 10,844 Borrowed money 5,141 4,236 2,633 ---------------- ---------------- --------------- Total Interest Expense 16,663 17,217 13,477 ---------------- ---------------- --------------- Net Interest Income 19,960 17,173 17,784 Provision for Loan Losses 1,300 600 625 ---------------- ---------------- --------------- Net Interest Income after Provision for Loan Losses 18,660 16,573 17,159 ---------------- ---------------- --------------- Non-Interest Income Fees and service charges 689 629 595 Gain on sales of loans originated for sale 137 420 635 Gain on sale of real estate owned 1 13 - Other than temporary impairment on security (2,915) - - Other 34 30 30 ---------------- ---------------- --------------- Total Non-Interest (Loss) Income (2,054) 1,092 1,260 ---------------- ---------------- --------------- Non-Interest Expenses Salaries and employee benefits 5,492 5,699 5,210 Occupancy expense of premises 1,059 1,000 900 Equipment 2,019 1,906 1,734 Advertising 241 326 329 Loss on overdrafts 560 - - Other 1,943 1,787 1,459 ---------------- ---------------- --------------- Total Non-Interest Expenses 11,314 10,718 9,632 ---------------- ---------------- --------------- Income before Income Taxes 5,292 6,947 8,787 Income Taxes 1,820 2,509 3,220 ---------------- ---------------- --------------- Net Income $3,472 $4,438 $ 5,567 ================ ================ =============== Net Income per Common Share Basic $0.75 $0.92 $1.11 ---------------- ---------------- --------------- Diluted $0.74 $0.90 $1.08 ---------------- ---------------- --------------- Weighted Average Number of Common Shares Outstanding Basic 4,629 4,818 5,005 ---------------- ---------------- --------------- Diluted 4,706 4,943 5,172 ---------------- ---------------- ---------------