BCB Bancorp, Inc. Announces Positive Trend on Loan Deferrals
BCB Bancorp, Inc. (NASDAQ: BCBP) reported significant reductions in its COVID-19 Loan Deferral Program as of October 14, 2020. Deferrals dropped from over 30% in Q2 2020 to below 1%. The bank noted a strong trend in customer repayments, reflecting the effectiveness of its underwriting practices and customer engagement. Currently, only 12 loans, totaling $10.8 million, remain in deferment, with no specific reserve deemed necessary. The report highlights BCBP's resilience and commitment to supporting its customers amidst the pandemic.
- Loan deferrals decreased from over 30% in Q2 2020 to less than 1% by October 14, 2020.
- A majority of customers have returned to regular payment schedules.
- Only 12 loans, amounting to $10.8 million, are still in deferment, indicating strong portfolio health.
- No specific reserve is necessary for the loans currently in deferment.
- None.
BAYONNE, N.J., Oct. 15, 2020 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), announced today their loan deferral data as of October 14, 2020 reflected strong reductions in overall loan deferrals and positive trends in customer repayments. There was a significant decrease in the amount of loans that are currently in the COVID-19 Loan Deferral Program at the Bank. The Bank is seeing favorable trends as a vast majority of customers return to their regular payment schedules.
“As a community-based bank, we are pleased by the positive trends within our loan portfolio and the commitment of our staff as we’ve reduced the total percentage of loan deferrals from over
The following is a summary of deferments by loan type (dollars in thousands):
| Portfolio Balance as of 6/30/20 | Portfolio Balance as of 9/30/20 | Portfolio Balance as of 10/14/20 | |||||||
| Number of Loans | Balance | Weighted Average Interest Rate | Number of Loans | Balance | Weighted Average Interest Rate | Number of Loans | Balance | Weighted Average Interest Rate | |
| Residential 1-4 Family | 131 | 4.3 | 2 | 5.0 | - | - | - | ||
| Commercial and Multi-Family | 371 | 4.4 | 45 | 4.5 | 11 | $9,620 | 4.1 | ||
| Construction | 3 | 5.5 | - | - | - | - | - | - | |
| Commercial Business | 81 | 5.7 | 9 | 5.6 | 1 | $1,149 | 6.0 | ||
| Home Equity | 35 | 4.6 | 2 | 299 | 5.1 | - | - | - | |
| Total | 621 | 4.6 | 59 | 4.6 | 12 | $10,769 | 4.3 | ||
The following is a summary of loan first deferment maturities (dollars in thousands):
| Call Report Categories 1st Deferment | December 2020 | January 2021 | Total |
| Multifamily Property | - | ||
| Owner-Occupied Commercial Real Estate | - | ||
| Investment Commercial Real Estate | - | ||
| Total | |||
The following is a summary of loan second deferment maturities (dollars in thousands):
| Call Report Categories 2nd Deferment | December 2020 | January 2021 | Total |
| First Lien loan on residence | |||
| Multifamily Property | - | ||
| Owner-Occupied Commercial Real Estate | - | ||
| Investment Commercial Real Estate | - | ||
| Total | |||
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, as well as three branches in Hicksville and Staten Island, New York. 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 the Company 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. Examples of forward-looking statements include, among others, statements we make regarding expected operating results, such as revenue growth and earnings. 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. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable law or regulation, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
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: the impact of the COVID-19 pandemic on the Company and U.S. and global financial markets; containment measures enacted by the U.S. federal and state governments and by private businesses in response to the COVID-19 pandemic; the deterioration of the U.S. economy in general and in the local economies in which the Company conducts its operations; increasing credit losses due to deterioration in the financial condition of the Bank’s borrowers; civil unrest in the communities that the Company serves; levels of unemployment in the Bank’s lending areas; 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 and could cause our actual results to differ materially from those indicated in the forward-looking statements:
- 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.
CONTACT:
THOMAS COUGHLIN,
PRESIDENT & CEO
THOMAS KEATING, CFO
(201) 823-0700
FAQ
What is the status of loan deferrals at BCB Bancorp as of October 2020?
How much money is currently in loan deferrals at BCB Bancorp?
What percentage of customers have resumed regular payments at BCB Bancorp?
Did BCB Bancorp need to set aside reserves for deferred loans?
