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BCB Bancorp Inc. Reports Operating Results (10-Q/A)

August 02, 2010 | About:
10qk

10qk

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BCB Bancorp Inc. (BCBP) filed Amended Quarterly Report for the period ended 2009-09-30.

Bcb Bancorp Inc. has a market cap of $38.71 million; its shares were traded at around $8.3 with a P/E ratio of 10.51 and P/S ratio of 1.1. The dividend yield of Bcb Bancorp Inc. stocks is 5.78%. Bcb Bancorp Inc. had an annual average earning growth of 7.3% over the past 5 years.

Highlight of Business Operations:

The provision for loan losses totaled $300,000 for the three months ended September 30, 2009 as well as for the three months ended September 30, 2008. The provision for loan losses is established based upon managements review of the Banks loans and consideration of a variety of factors including, but not limited to, (1) the risk characteristics of the loan portfolio, (2) current economic conditions, (3) actual losses previously experienced, (4) significant level of loan growth and (5) the existing level of reserves for loan losses that are probable and estimable. During the three months ended September 30, 2009, the Bank experienced $191,000 in net charge-offs, (consisting of $193,000 in charge-offs and $2,000 in recoveries). During the three months ended September 30, 2008, the Bank experienced $7,000 in net charge-offs, (consisting of $8,000 in charge-offs and $1,000 in recoveries). The Bank had non-performing loans totaling $8.6 million or 2.05% of gross loans at September 30, 2009, $5.0 million or 1.20% of gross loans at June 30, 2009 and $3.0 million or 0.74% of gross loans at September 30, 2008. The allowance for loan losses was $6.0 million or 1.43% of gross loans at September 30, 2009, $5.9 million or 1.43% of gross loans at June 30, 2009 and $4.9 million or 1.20% of gross loans at September 30, 2008. The amount of the allowance is based on estimates and the ultimate losses may vary from such estimates. Management assesses the allowance for loan losses on a quarterly basis and makes provisions for loan losses as necessary in order to maintain the adequacy of the allowance. While management uses available information to recognize losses on loans, future loan loss provisions may be necessary based on changes in the aforementioned criteria. In addition various regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan losses and may require the Bank to recognize additional provisions based on their judgment of information available to them at the time of their examination. Management believes that the allowance for loan losses was adequate at September 30, 2009, June 30,2009 and September 30, 2008.

Total non-interest expense increased by $504,000 or 18.6% to $3.2 million for the three months ended September 30, 2009 from $2.7 million for the three months ended September 30, 2008. Salaries and employee benefits expense increased by $70,000 or 5.1% to $1.44 million for the three months ended September 30, 2009 from $1.37 million for the three months ended September 30, 2008. This increase occurred primarily as the result of an increase in the number of full time equivalent employees to 86 for the three months ended September 30, 2009, from 82 for the three months ended September 30, 2008. Equipment expense increased by $26,000 or 5.1% to $537,000 for the three months ended September 30, 2009 from $511,000 for the three months ended September 30, 2008. The primary component of this expense item is data service provider expense which increases with the growth in the Banks assets. Occupancy expense and advertising increased by an aggregate of $28,000 or 8.2% to $368,000 for the three months ended September 30, 2009 from $340,000 for the three months ended September 30, 2008. Regulatory assessments increased by $101,000 or 136.5% to $175,000 for the three months ended September 30, 2009 from $74,000 for the three months ended September 30, 2008. This increase was primarily attributable to an increase in FDIC assessment rates for the three months ended September 30, 2009. Merger related expenses increased by $220,000 to $220,000 for the three months ended September 30, 2009 compared to no comparative expense for the three months ended September 30, 2008. This increase was related exclusively to expenses associated with merger related discussions with another financial institution during the three months ended September 30, 2009. Director fees increased by $38,000 or 46.3% to $120,000 for the three months ended September 30, 2009 from $82,000 for the three months ended September 30, 2008. The increase in director fees related primarily to an increase in the number of board meetings held as a result of the merger related discussions held with another financial institution. Professional fees decreased by $21,000 or 14.5% to $124,000 for the three months ended September 30, 2009 from $145,000 for the three months ended September 30, 2008. Other non-interest expense increased by $42,000 or 22.5% to $229,000 for the three months ended September 30, 2009 from $187,000 for the three months ended September 30, 2008. Other non-interest expense is comprised of directors fees, stationary, forms and printing, professional fees, legal fees, check printing, correspondent bank fees, telephone and communication, shareholder relations and other fees and expenses.

Net income increased by $1.65 million or 124.1% to $2.98 million for the nine months ended September 30, 2009 from $1.33 million for the nine months ended September 30, 2008. The increase in net income was due to an increase in non-interest income and a decrease in income taxes, partially offset by a decrease in net interest income and increases in the provision for loan losses and non-interest expense. Net interest income decreased by $486,000 or 3.3% to $14.3 million for the nine months ended September 30, 2009 from $14.8 million for the nine months ended September 30, 2008. This decrease in net interest income resulted primarily from a decrease in the average yield on interest earning assets to 5.81% for the nine months ended September 30, 2009 from 6.51% for the nine months ended September 30, 2008, partially offset by an increase of $31.9 million or 5.7% in the average balance of interest earning assets to $592.6 million for the nine months ended September 30, 2009 from $560.7 million for the nine months ended September 30, 2008. The average balance of interest bearing liabilities increased by $32.8 million or 6.7% to $519.8 million for the nine months ended September 30, 2009 from $487.0 million for the nine months ended September 30, 2008, while the average cost of interest bearing liabilities decreased to 2.96% for the nine months ended September 30, 2009 from 3.45% for the nine months ended September 30, 2008. As a consequence of the decrease in the average yield earned on our interest earning assets, our net interest margin decreased to 3.21% for the nine months ended September 30, 2009 from 3.51% for the nine months ended September 30, 2008.

The provision for loan losses totaled $950,000 for the nine months ended September 30, 2009 and $850,000 for the nine months ended September 30, 2008. The provision for loan losses is established based upon managements review of the Banks loans and consideration of a variety of factors including, but not limited to, (1) the risk characteristics of the loan portfolio, (2) current economic conditions, (3) actual losses previously experienced, (4) significant level of loan growth and (5) the existing level of reserves for loan losses that are probable and estimable. During the nine months ended September 30, 2009, the Bank experienced $207,000 in net charge-offs (consisting of $209,000 in charge-offs and $2,000 in recoveries). During the nine months ended September 30, 2008, the Bank experienced $60,000 in net charge-offs (consisting of $101,000 in charge-offs and $41,000 in recoveries). The Bank had non-performing loans totaling $8.6 million or 2.05% of gross loans at September 30, 2009, $3.7 million or 0.90% of gross loans at December 31, 2008 and $3.0 million or 0.74% of gross loans at September 30, 2008. The allowance for loan losses was $6.0 million or 1.43% of gross loans at September 30, 2009, $5.3 million or 1.28% of gross loans at December 31, 2008 and $4.9 million or 1.20% of gross loans at September 30, 2008. The amount of the allowance is based on estimates and the ultimate losses may vary from such estimates. Management assesses the allowance for loan losses on a quarterly basis and makes provisions for loan losses as necessary in order to maintain the adequacy of the allowance. While management uses available information to recognize losses on loans, future loan loss provisions may be necessary based on changes in the aforementioned criteria. In addition various regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan losses and may require the Bank to recognize additional provisions based on their judgment of information available to them at the time of their examination. Management believes that the allowance for loan losses was adequate at September 30, 2009, December 31, 2008 and September 30, 2008.

Total non-interest income increased by $2.8 million to income of $650,000 for the nine months ended September 30, 2009 from a loss of $2.1 million for the nine months ended September 30, 2008. The increase in non-interest income resulted primarily from a $2.8 million other than temporary write-down on securities in 2008 with no such write-down for the nine months ended September 30, 2009. Non-interest income was further enhanced by an increase of $65,000 or 56.5% in gain on sales of loans originated for sale to $180,000 for the nine months ended September 30, 2009 from $115,000 for the nine months ended September 30, 2008 and a $5,000 increase in gain on sale of real estate owned, partially offset by a decrease of $28,000 or 5.7% in general fees, service charges and other income to $465,000 for the nine months ended September 30, 2009 from $493,000 for the nine months ended September 30, 2008. The increase in gain on sale of loans originated for sale reflects the increased level of re-finance activity in the one- to four-family residential real estate market during the nine months ended September 30, 2009, due primarily to tRead the The complete Report

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