BCB Bancorp, Inc. Completes Preferred Stock Issuance

Rhea-AI Summary

BCB Bancorp (NASDAQ: BCBP) announced the final issuance of its Series H preferred stock, raising a total of $11.2 million over three rounds. The company redeemed $10.2 million of its preferred stock, including Series C and F, during Q3 2020. These strategic moves are expected to strengthen BCBP's capital position and reduce dividend costs by approximately $55,000 per quarter. The bank operates 31 branches in New Jersey and New York, providing a range of banking services.

Positive

• Raised $11.2 million from Series H preferred stock issuance.
• Reduced dividend costs by approximately $55,000 per quarter.
• Strengthened capital position through strategic transactions.

Negative

• Ongoing risks due to COVID-19 may affect demand for products and services.
• Potential increase in loan delinquencies and problem assets.
• The decline in the Federal Reserve's target rate may reduce net interest margin.

BAYONNE, N.J., Dec. 16, 2020 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today announced that it has completed the final issuance of its Series H preferred stock. Over the last seven months, the Company issued a total of $11.2 million of Series H 3.5% preferred stock over three rounds. Additionally, the Company redeemed $10.2 million of its preferred stock during the third quarter of 2020, which included the Company’s Series C 6% and Series F 6% preferred stock.

“As a result of these strategic transactions, we have further strengthened our capital position, and our dividend costs have been reduced,” said Thomas Coughlin, President and Chief Executive Officer. “Overall, we anticipate saving approximately $55,000 in dividend costs per quarter.”

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, and 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.

Forward-Looking Statements

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, including returning capital to shareholders and execution of our repurchase program, is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

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: 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:

• 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;
• FDIC premiums may increase if the agency experiences additional resolution costs; and
• civil unrest could occur in the communities that the Company serves.
  

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 latest financial update from BCB Bancorp (BCBP)?

BCB Bancorp completed the final issuance of Series H preferred stock, raising $11.2 million and redeeming $10.2 million of preferred stock in Q3 2020.

How has BCB Bancorp (BCBP) strengthened its capital position?

The company has strengthened its capital position by redeeming preferred stock and issuing Series H preferred stock, which reduces its dividend costs.

What are the implications of COVID-19 for BCB Bancorp (BCBP)?

COVID-19 poses risks such as reduced demand for banking products, potential increases in loan delinquencies, and lower net interest margins.

What are the expected savings from BCB Bancorp's preferred stock transactions?

BCB Bancorp anticipates saving approximately $55,000 in dividend costs per quarter.