BAYONNE, N.J.--(BUSINESS WIRE)--BCB Bancorp, Inc., Bayonne, NJ (NASDAQ: BCBP) announced net earnings of $742,000 for the quarter ended June 30, 2009 compared to $1.3 million for the quarter ended June 30, 2008. Basic and diluted earnings per share were $0.16 for the three months ended June 30, 2009 as compared to $0.28 and $0.27, respectively for the three months ended June 30, 2008. The Company further reported net earnings of $2.1 million for the six months ended June 30, 2009 as compared to $2.6 million for the six months ended June 30, 2008. Basic and diluted earnings per share were $0.45 for the six months ended June 30, 2009 as compared to $0.56 and $0.55, respectively for the six months ended June 30, 2008. The Board of Directors unanimously approved a cash dividend payment of $0.12 per common share for shareholders of record as of July 30, 2009 payable on August 14, 2009. Total assets increased by $39.0 million or 6.7% to $617.6 million at June 30, 2009 from $578.6 million at December 31, 2008. Total cash and cash equivalents increased by $64.5 million or 948.5% to $71.3 million at June 30, 2009 from $6.8 million at December 31, 2008. The increase in cash and cash equivalents reflects management’s decision to increase the Bank’s liquidity position while it determines where the best investment opportunities exist during a period of significant economic disruption. Securities held-to-maturity decreased by $25.9 million or 18.3% to $115.4 million at June 30, 2009 from $141.3 million at December 31, 2008. Loans receivable decreased by $1.5 million or 0.4% to $405.3 million at June 30, 2009 from $406.8 million at December 31, 2008. Deposit liabilities increased by $40.1 million or 9.8% to $450.6 million at June 30, 2009 from $410.5 million at December 31, 2008. Stockholders’ equity increased by $1.1 million or 2.2% to $50.8 million at June 30, 2009 from $49.7 million at December 31, 2008. The increase in stockholders’ equity is primarily attributable to net income of the Company for the six months ended June 30, 2009 of $2.1 million, a $63,000 increase resulting from the exercise of stock options totaling 11,933 shares and a $12,000 increase in the market value of our available-for-sale securities portfolio, net of tax, partially offset by the payment of two quarterly cash dividends totaling $1.1 million representing two $0.12/share payments during the six months ended June 30, 2009, and $25,000 paid to repurchase 2,509 shares of the Company’s common stock. Net income decreased by $534,000 or 41.8% to $742,000 for the three months ended June 30, 2009 from $1.28 million for the three months ended June 30, 2008. The decrease in net income was due to a decrease in net interest income and an increase in total non-interest expense, partially offset by an increase in total non-interest income and a decrease in income taxes. Net interest income decreased by $534,000 or 11.0% to $4.34 million for the three months ended June 30, 2009 from $4.87 million for the three months ended June 30, 2008. This decrease in net interest income resulted primarily from a decrease in the average yield on interest earning assets to 5.50% for the three months ended June 30, 2009 from 6.41% for the three months ended June 30, 2008, partially offset by an increase of $36.9 million or 6.6% in the average balance of interest earning assets to $599.5 million for the three months ended June 30, 2009 from $562.6 million for the three months ended June 30, 2008. The average balance of interest bearing liabilities increased by $37.3 million or 7.6% to $525.5 million for the three months ended June 30, 2009 from $488.2 million for the three months ended June 30, 2008 and the average cost of interest bearing liabilities decreased by forty-two basis points to 2.97% for the three months ended June 30, 2009 from 3.39% for the three months ended June 30, 2008. As a consequence of the aforementioned, our net interest margin decreased to 2.89% for the three months ended June 30, 2009 from 3.46% for the three months ended June 30, 2008. Net income decreased by $475,000 or 18.4% to $2.1 million for the six months ended June 30, 2009 from $2.6 million for the six months ended June 30, 2008. The decrease in net income was due to a decrease in net interest income, an increase in the provision for loan losses and an increase in total non-interest expense, partially offset by an increase in non-interest income and a decrease in income taxes. Net interest income decreased by $290,000 or 3.0% to $9.26 million for the six months ended June 30, 2009 from $9.55 million for the six months ended June 30, 2008. This decrease in net interest income resulted primarily from a decrease in the average yield on interest earning assets to 5.84% for the six months ended June 30, 2009 from 6.50% for the six months ended June 30, 2008, partially offset by an increase of $29.3 million or 5.3% in the average balance of interest earning assets to $585.6 million for the six months ended June 30, 2009 from $556.3 million for the six months ended June 30, 2008. The average balance of interest bearing liabilities increased by $30.9 million or 6.4% to $513.6 million for the six months ended June 30, 2009 from $482.7 million for the six months ended June 30, 2008, while the average cost of interest bearing liabilities decreased to 3.06% for the six months ended June 30, 2009 from 3.53% for the six months ended June 30, 2008. As a consequence of the decrease in the average yield earned on our interest earning assets, our net interest margin decreased to 3.16% for the six months ended June 30, 2009 from 3.43% for the six months ended June 30, 2008. Donald Mindiak, President & CEO commented, “Net income for the three and six month periods ending June 30, 2009 were adversely impacted by the FDIC’s one-time recapitalization assessment, which impacted all federally insured financial institutions in the United States. This assessment, which totaled $300,000, was required to be accrued for during the second quarter and will be paid prior to the close of the third quarter of 2009. In the absence of this one-time recapitalization assessment, net income would have been enhanced by $180,000 and earnings per share, both basic and diluted, would have increased by an additional $0.04 per common share.” “As investment security balances have decreased by virtue of the volume of call options being exercised on our callable agency security portfolio, the Company has determined that current market conditions warrant maintaining a higher than customary liquidity position in the absence of investment opportunities that will provide a meaningfully higher return to the Bank. In so doing, while interest income on securities has decreased accordingly, we will be ready for the opportunities for reinvestment that will inevitably present themselves. Prudent management of this challenge, given the opportunity that is presented to us with the pending merger with Pamrapo Bancorp, which was announced at the end of the second quarter, will play a critical role in positioning the Company to take advantage of the opportunities that will exist as the country comes out of the current recession.” “Balance sheet growth continues to occur at a measured pace, commensurate with our capital ratios and, mindful of the weakness in the local and national economy, while asset quality remains a source of strength for the Company, we continue to carefully monitor our loan portfolio and will prudently make loan loss allowance provisions to insulate the Company from any loan facility issues.” 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. BCB BANCORP INC. AND SUBSIDIARIES Consolidated Statements of Financial Condition at June 30, 2009 and December 31, 2008 (Unaudited) (in thousands except for share data ) At At June 30, 2009 December 31, 2008 ASSETS Cash and amounts due from depository institutions $ 3,741 $ 3,495 Interest-earning deposits 67,530 3,266 Total cash and cash equivalents 71,271 6,761 Securities held for sale 908 888 Securities held to maturity, fair value $117,798 and $143,245 respectively 115,419 141,280 Loans held for sale 3,379 1,422 Loans receivable, net of allowance for loan losses of $5,938 and $5,304 respectively 405,268 406,826 Premises and equipment 5,479 5,627 Federal Home Loan Bank of New York stock 5,715 5,736 Interest receivable 3,004 3,884 Other real estate owned 1,335 1,435 Deferred income taxes 3,421 3,113 Other assets 2,421 1,652 Total assets $ 617,620 $ 578,624 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Non-interest bearing deposits $ 32,314 $ 30,561 Interest bearing deposits 418,261 379,942 Total deposits 450,575 410,503 Short-term Borrowings - 2,000 Long-term Debt 114,124 114,124 Other Liabilities 2,168 2,282 Total Liabilities 566,867 528,909 STOCKHOLDERS' EQUITY Common stock, stated value $0.064; 10,000,000 shares authorized; 5,195,664 and 5,183,731 shares respectively, issued 332 331 Additional paid-in capital 46,926 46,864 Treasury stock, at cost, 536,189 and 533,680 shares, respectively (8,705 ) (8,680 ) Retained Earnings 12,313 11,325 Accumulated other comprehensive loss (113 ) (125 ) Total stockholders' equity 50,753 49,715 Total liabilities and stockholders' equity $ 617,620 $ 578,624 BCB BANCORP INC. AND SUBSIDIARIES Consolidated Statements of Income For the three and six months ended June 30, 2009 and 2008 (Unaudited) ( in thousands except for per share data) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Interest income: Loans $ 6,827 $ 6,623 $ 13,716 $ 13,268 Securities 1,392 2,281 3,372 4,620 Other interest-earning assets 19 108 23 181 Total interest income 8,238 9,012 17,111 18,069 Interest expense: Deposits: Demand 205 241 403 542 Savings and club 279 339 576 699 Certificates of deposit 2,176 2,300 4,397 4,741 2,660 2,880 5,376 5,982 Borrowed money 1,242 1,262 2,478 2,540 Total interest expense 3,902 4,142 7,854 8,522 Net interest income 4,336 4,870 9,257 9,547 Provision for loan losses 300 300 650 550 Net interest income after provision for loan losses 4,036 4,570 8,607 8,997 Non-interest income: Fees and service charges 144 147 274 305 Gain on sales of loans originated for sale 86 20 128 100 Gain on sale of real estate owned 5 - 5 - Other 7 6 16 16 Total non-interest income 242 173 423 421 Non-interest expense: Salaries and employee benefits 1,306 1,378 2,629 2,753 Occupancy expense of premises 282 262 546 525 Equipment 526 504 1,041 1,002 Advertising 72 71 119 122 Other 844 524 1,281 964 Total non-interest expense 3,030 2,739 5,616 5,366 Income before income tax provision 1,248 2,004 3,414 4,052 Income tax provision 506 728 1,309 1,472 Net Income $ 742 $ 1,276 $ 2,105 $ 2,580 Net Income per common share-basic and diluted basic $ 0.16 $ 0.28 $ 0.45 $ 0.56 diluted $ 0.16 $ 0.27 $ 0.45 $ 0.55 Weighted average number of common shares outstanding- basic 4,653 4,604 4,651 4,610 diluted 4,676 4,691 4,677 4,705 Contacts BCB Bancorp, Inc. Donald Mindiak, President & CEO Thomas Coughlin, COO & Principal Accounting Officer 201-823-0700

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