EX-99 2 pr_020910.txt PRESS RELEASE BCB Bancorp, Inc., Announces Increase in Annual Earnings Bayonne, N.J. - February 9, 2010 (BUSINESS WIRE) - BCB Bancorp, Inc., Bayonne, NJ (NASDAQ: BCBP - News) announced an increase in net earnings of $276,000 or 8.0% to $3.75 million for the year ended December 31, 2009 from $3.47 million for the year ended December 31, 2008. Basic and diluted earnings per share were $0.81 and $0.80, respectively, for the year ended December 31, 2009 as compared to $0.75 and $0.74, respectively, for the year ended December 31, 2008. The weighted average number of common shares outstanding for the year ended December 31, 2009 for basic and diluted earnings per share calculations was 4,655,000 and 4,676,000 respectively. The weighted average number of shares outstanding for the year ended December 31, 2008 for basic and diluted earnings per share calculation purposes was 4,629,000 and 4,706,000. Total assets increased by $52.9 million or 9.1% to $631.5 million at December 31, 2009 from $578.6 million at December 31, 2008. Total cash and cash equivalents increased by $60.5 million to $67.3 million at December 31, 2009 from $6.8 million at December 31, 2008. Securities held-to-maturity decreased by $8.7 million or 6.2% to $132.6 million at December 31, 2009 from $141.3 million at December 31, 2008. Loans receivable decreased by $4.9 million or 1.2% to $401.9 million at December 31, 2009 from $406.8 million at December 31, 2008. Deposit liabilities increased by $53.2 million or 13.0% to $463.7 million at December 31, 2009 from $410.5 million at December 31, 2008. Total stockholders' equity increased by $1.7 million or 3.4% to $51.4 million at December 31, 2009 from $49.7 million at December 31, 2008. The increase in stockholders' equity primarily reflects net income of $3.75 million for the year ended December 31, 2009 and the exercise of stock options during the year to purchase 11,933 shares of the Company's common stock for a total of approximately $63,000, partially offset by the repurchase of 4,072 shares of the Company's common stock in the stock repurchase plans in place and undertaken during the year totaling $39,000 and cash dividends paid to shareholders during the year totaling $2.2 million. Net income increased by $276,000 or 8.0% to $3.75 million for the year ended December 31, 2009 from $3.47 million for the year ended December 31, 2008. The increase in net income resulted primarily from an increase in non-interest income, partially offset by a decrease in net interest income and increases in the provision for loan losses, non-interest expense and income taxes. Net interest income decreased by $576,000 or 2.9% to $19.4 million for the year ended December 31, 2009 from $20.0 million for the year ended December 31, 2008. The decrease in net interest income resulted primarily from a decrease in the average yield on interest earning assets to 5.74% for the year ended December 31, 2009 from 6.49% for the year ended December 31, 2008, partially offset by an increase of $34.3 million or 6.1% in the average balance of interest earning assets to $598.8 million for the year ended December 31, 2009 from $564.5 million for the year ended December 31, 2008. The average balance of interest bearing liabilities increased by $34.3 million or 7.0% to $525.0 million at December 31, 2009 from $490.7 million at December 31, 2008 while the average cost of interest bearing liabilities decreased to 2.86% for the year ended December 31, 2009 from 3.40% for the year ended December 31, 2008. As a result of the aforementioned, our net interest margin decreased to 3.24% for the year ended December 31, 2009 from 3.54% for the year ended December 31, 2008. Donald Mindiak, President & CEO commented, "balance sheet growth has continued at a measured pace commensurate with our capital levels. Operating results improved and as a result, earnings per share increased during 2009 by $0.06 or 8.0% and 8.1%, respectively, to $0.81 and $0.80 basic and diluted from $0.75 and $0.74, respectively for 2008. Since asset quality remains the most critical component of management's focus, loan loss provision accruals were increased over prior year by $250,000, to $1.55 million, reflecting management's assessment of possible and estimable losses on our portfolio. The increase in the allowance also reflects management's review of the strength of the local economy during the current recession. Our business combination transaction with Pamrapo Bancorp, Inc., continues its progress toward completion and it is now anticipated to be completed late in the first quarter of 2010." Mr. Mindiak continued, "The Board of Directors, unanimously declared a quarterly cash dividend of $0.12/share, payable on Monday February 15, 2010, consistent with our prior quarter's amount. The payment of cash dividends represents the Board's philosophy of providing our shareholders' with a competitive return on their investment. We are proud to have paid continuing cash dividends for the past twelve quarters. 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 (Unaudited) December 31, ----------------------------- 2009 2008 ---------- ---------- (In Thousands, except for share data and per share data) Merger related expenses Cash and amounts due from depository institutions $ 3,587 $ 3,495 Interest-earning deposits 63,760 3,266 --------------- --------------- Cash and Cash Equivalents 67,347 6,761 Securities available for sale 1,346 888 Securities held to maturity, fair value $133,050 and $143,245 Respectively 132,644 141,280 Loans held for sale 4,275 1,422 Loans receivable, net of allowance for loan losses of $6,644 and $5,304 respectively 401,872 406,826 Premises and equipment 5,359 5,627 Federal Home Loan Bank of New York stock 5,714 5,736 Interest receivable 3,799 3,884 Real Estate Owned 1,270 1,435 Deferred income taxes 3,618 3,113 Other assets 4,259 1,652 --------------- --------------- Total Assets $631,503 $578,624 =============== =============== Liabilities and Stockholders' Equity Liabilities Non-interest bearing deposits $37,082 $30,561 Interest bearing deposits 426,656 379,942 --------------- --------------- Total deposits 463,738 410,503 --------------- --------------- Short-term borrowings - 2,000 Long-term debt 114,124 114,124 Other liabilities 2,250 2,282 --------------- --------------- Total Liabilities 580,112 528,909 --------------- --------------- Stockholders' Equity Common stock, stated value $0.06; 10,000,000 shares authorized; 5,195,658 and 5,183,731 shares, respectively, issued 332 331 Paid-in capital 46,926 46,864 Treasury stock, at cost, 537,752 and 533,680 shares, respectively (8,719) (8,680) Retained earnings 12,839 11,325 Accumulated other comprehensive (loss) income 13 (125) --------------- --------------- Total Stockholders' Equity 51,391 49,715 --------------- --------------- Total Liabilities and Stockholders' Equity $631,503 $578,624 =============== ===============

Consolidated Statements of Income (Unaudited) Years Ended December 31, ------------------------------------------------------ 2009 2008 2007 (In Thousands, Except for Per Share Data) Interest Income Loans, including fees $27,349 $27,248 $24,365 Securities 6,982 9,185 8,843 Other interest-earning assets 47 190 1,182 ---------------- ---------------- --------------- Total Interest Income 34,378 36,623 34,390 ---------------- ---------------- --------------- Interest Expense Deposits: Demand 877 1,046 1,006 Savings and club 1,157 1,370 1,866 Certificates of deposit 7,984 9,106 10,109 ---------------- ---------------- --------------- 10,018 11,522 12,981 Borrowed money 4,976 5,141 4,236 ---------------- ---------------- --------------- Total Interest Expense 14,994 16,663 17,217 ---------------- ---------------- --------------- Net Interest Income 19,384 19,960 17,173 Provision for Loan Losses 1,550 1,300 600 ---------------- ---------------- --------------- Net Interest Income after Provision for Loan Losses 17,834 18,660 16,573 ---------------- ---------------- --------------- Non-Interest Income Fees and service charges 657 689 629 Gain on sales of loans originated for sale 225 137 420 Gain on sale of real estate owned 13 1 13 Other than temporary impairment on security - (2,915) - Other 36 34 30 ---------------- ---------------- --------------- Total Non-Interest (Loss) Income 931 (2,054) 1,092 ---------------- ---------------- --------------- Non-Interest Expenses Salaries and employee benefits 5,403 5,492 5,699 Occupancy expense of premises 1,122 1,059 1,000 Equipment 2,124 2,019 1,906 Advertising 273 241 326 Merger related expenses 648 172 - Loss on overdrafts - 560 - Other 2,826 1,771 1,787 ---------------- ---------------- --------------- Total Non-Interest Expenses 12,396 11,314 10,718 ---------------- ---------------- --------------- Income before Income Taxes 6,639 5,292 6,947 Income Taxes 2,621 1,820 2,509 ---------------- ---------------- --------------- Net Income $3,748 $3,472 $4,438 ================ ================ =============== Net Income per Common Share Basic $0.81 $0.75 $0.92 ---------------- ---------------- --------------- Diluted $0.80 $0.74 $0.90 ---------------- ---------------- --------------- Weighted Average Number of Common Shares Outstanding Basic 4,655 4,629 4,818 ---------------- ---------------- --------------- Diluted 4,676 4,706 4,943 ---------------- ---------------- ---------------