BCB Bancorp, Inc.’s EPS Grows to $0.58 in Second Quarter 2022; NIM Expands to 3.74 Percent and Net Loans Increase 13.7 Percent YTD; Declares Quarterly Cash Dividend of $0.16 Per Share

Rhea-AI Summary

BCB Bancorp, Inc. (NASDAQ: BCBP) reported a strong second quarter in 2022, with net income increasing 26.2% to $10.2 million, or $0.58 per diluted share. Year-to-date net income rose 32.6% to $20.1 million. The board declared a quarterly cash dividend of $0.16 per share, payable August 15, 2022. The net interest margin improved by 27 basis points to 3.74%, supported by loan portfolio growth and increased core deposits. Notably, no loan loss provision was recorded, reflecting solid asset quality metrics with non-accrual loans decreasing to 0.35%.

Positive

• Net income surged 26.2% to $10.2 million in Q2 2022.
• Year-to-date net income increased 32.6% to $20.1 million.
• Quarterly dividend of $0.16 per share declared, payable August 15, 2022.
• Net interest margin rose 27 basis points to 3.74%.
• No loan loss provision recorded, indicating strong asset quality.

Negative

• Noninterest income decreased by $3.1 million, reflecting unrealized losses on equity securities.

BAYONNE, N.J., July 21, 2022 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported that net income increased 26.2 percent to $10.2 million for the second quarter of 2022, compared to $8.1 million for the second quarter of 2021, and increased 2.1 percent compared to $10.0 million in the immediate prior quarter. Earnings per diluted share for the second quarter of 2022 were $0.58, compared to $0.56 in the preceding quarter and $0.45 in the second quarter of 2021. For the first six months of the year, net income increased 32.6 percent to $20.1 million, compared to $15.2 million for the first six months of 2021. Year-to-date, earnings per diluted share were $1.13 compared to $0.85 for the first six months of 2021.

The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on August 15, 2022 to common shareholders of record on August 1, 2022.

“Our second quarter earnings were exceptional, and a direct result of the efforts we have put in place to manage our cost of funds, control operating expenses, and grow the balance sheet,” stated Thomas Coughlin, President and Chief Executive Officer. “The highlights of the second quarter include substantial growth in the loan portfolio, increases to our core deposit base, and expansion of the net interest margin.”

“Our approach to managing our funding costs, combined with the increase in loan volume during the quarter, helped to increase our net interest margin by 27 basis points in the second quarter of 2022, compared to the second quarter a year ago. We are well-positioned for rising interest rates with a strong, low-cost core deposit base and other diverse sources of liquidity to support the Bank’s substantial loan pipeline,” said Coughlin.

Mr. Coughlin stated, “Due to the continued, solid performance of our asset quality metrics, we recorded no loan loss provision during the second quarter of 2022. Our non-accrual loans to total loans ratio decreased to 0.35 percent at June 30, 2022, from 0.38 percent at March 31, 2022, and 0.94 percent a year ago.”

Executive Summary

• Net income was $10.2 million in the second quarter of 2022, compared to $10.0 million in the prior quarter, and $8.1 million in the second quarter a year ago.
• Earnings per diluted share were $0.58 in the second quarter of 2022, compared to $0.56 in the prior quarter, and $0.45 in the second quarter of 2021.
• Net interest margin was 3.74 percent for the second quarter of 2022, a 28 basis point increase compared to 3.46 percent for the first quarter of 2022, and a 27 basis point increase compared to 3.47 percent for the second quarter of 2021.
  • Total cost of interest-bearing liabilities remained flat at 0.50 percent for the second quarter of 2022, compared to 0.50 percent for the first quarter of 2022, and decreased 24 basis points from 0.74 percent for the second quarter of 2021.
  • The interest rate spread increased by 28 basis points to 3.60 percent for the second quarter of 2022, compared to 3.32 percent for the first quarter of 2022, and increased 30 basis points from 3.30 percent compared to the second quarter of 2021.
• The efficiency ratio for the second quarter was 47.6 percent compared to 53.0 percent in the prior quarter, and 48.9 percent in the second quarter of 2021.
• The annualized return on average assets ratio for the second quarter was 1.32 percent, compared to 1.33 percent in the prior quarter, and 1.12 percent in the second quarter of 2021.
• The annualized return on average equity ratio for the second quarter was 15.0 percent, compared to 14.7 percent in the prior quarter, and 12.6 percent in the second quarter of 2021.
• The Company had no provision for loan losses for the second quarter of 2022, compared to a credit to the loan loss provision of $2.6 million for the prior quarter, and $2.3 million for the second quarter of 2021.
• Allowance for loan losses as a percentage of non-accrual loans was 370.7 percent at June 30, 2022, compared to 368.1 percent for the prior quarter, and 169.0 percent at June 30, 2021.
• Total non-accrual loans remained steady at $9.2 million for both June 30, 2022 and March 31, 2022, and decreased from $22.2 million at June 30, 2021.
• Total loans receivable, net of allowance for loan losses, increased 13.3 percent to $2.621 billion at June 30, 2022, from $2.313 billion at June 30, 2021.
• Total deposits increased 8.6 percent to $2.655 billion at June 30, 2022, up from $2.446 billion at June 30, 2021, with noninterest bearing deposits increasing 21.0 percent over a year ago.
• The Company’s Board of Directors declared a regular quarterly cash dividend of $0.16 per share, payable August 15, 2022 to common shareholders of record August 1, 2022.

Balance Sheet Review

Total assets increased by $105.2 million, or 3.5 percent, to $3.073 billion at June 30, 2022, from $2.968 billion at December 31, 2021. The increase in total assets was mainly related to increases in total loans partially offset by decreases in cash and cash equivalents.

Total cash and cash equivalents decreased by $205.4 million, or 49.9 percent, to $206.2 million at June 30, 2022, from $411.6 million at December 31, 2021. This decrease was primarily due to an increase in loans, partly offset by an increase in deposits.

Loans receivable, gross, increased by $313.9 million, or 13.4 percent, to $2.658 billion at June 30, 2022, from $2.344 billion at December 31, 2021. Total loan increases for the first six months of 2022 included increases of $310.5 million in commercial real estate and multi-family loans, $11.3 million in residential one-to-four family loans, $1.3 million in home equity loans, and $1.2 million in construction loans, partly offset by decreases of $9.3 million in commercial business loans, and $1.1 million in consumer loans. The allowance for loan losses decreased $3.0 million to $34.1 million, or 370.7 percent of non-accruing loans and 1.28 percent of gross loans, at June 30, 2022, as compared to an allowance for loan losses of $37.1 million, or 249.3 percent of non-accruing loans and 1.58 percent of gross loans, at December 31, 2021.

Total investment securities decreased by $4.7 million, or 4.2 percent, to $105.7 million at June 30, 2022, from $110.4 million at December 31, 2021, representing repayments, calls and maturities, and sales of $1.2 million, partly offset by purchases of $15.5 million.

Deposit liabilities increased by $93.6 million, or 3.7 percent, to $2.655 billion at June 30, 2022, from $2.561 billion at December 31, 2021. Total increases for the six months ended June 30, 2022, included $142.3 million in NOW deposit accounts, $23.2 million in money market checking accounts, $7.0 million in non-interest-bearing deposit accounts, and $17.5 million in savings and club accounts. The increase in deposits was partly offset by a decrease of $96.4 million in certificates of deposit, including listing service and brokered deposit accounts. The weighted average interest rate of certificates of deposit was 0.60 percent at June 30, 2022 and 0.72 percent at December 31, 2021.

Debt obligations increased by $15.4 million to $124.4 million at June 30, 2022, from $109.0 million at December 31, 2021, and consisted of both Federal Home Loan Bank (“FHLB”) borrowings and subordinated debt balances. The increase in debt obligations related to an overnight FHLB borrowing of $15.0 million. The weighted average interest rate of FHLB advances was 1.38 percent at June 30, 2022, and at December 31, 2021. The fixed interest rate of our subordinated debt balances was 5.625 percent at June 30, 2022, and at December 31, 2021.

Stockholders’ equity decreased by $2.4 million, or 0.9 percent, to $271.6 million at June 30, 2022, from $274.0 million at December 31, 2021. The decrease was primarily attributable to a decrease of $12.4 million in additional paid-in-capital for preferred stock and an increase in accumulated other comprehensive losses of $4.1 million. The decrease was partly offset by an increase in retained earnings of $14.2 million, or 17.5 percent, to $95.4 million at June 30, 2022, from $81.2 million at December 31, 2021, related to the net effect of net income less dividends paid for the six months ended June 30, 2022. The decrease in additional paid-in-capital for preferred stock was primarily related to the redemption of $9.4 million of the Company’s then-outstanding Series D 4.5 percent preferred stock and $5.3 million of the Company’s then-outstanding Series G 6.0 percent preferred stock, partially offset by the issuance of $2.4 million of Series I 3.0 percent preferred stock. Accumulated other comprehensive income decreased by $4.1 million over the prior year, based upon unfavorable market conditions related to the Company’s available for sale debt securities.

Second Quarter 2022 Income Statement Review

Net interest income increased by $3.7 million, or 15.3 percent, to $27.7 million for the second quarter of 2022, from $24.1 million for the second quarter of 2021. The increase in net interest income resulted from a $2.5 million increase in interest income as well as a decrease of $1.2 million in interest expense.

Interest income increased by $2.5 million, or 8.8 percent, to $30.5 million for the second quarter of 2022, from $28.0 million for the second quarter of 2021. The average balance of interest-earning assets increased $196.7 million, or 7.1 percent, to $2.969 billion for the second quarter of 2022, from $2.772 billion for the second quarter of 2021, while the average yield increased six basis points to 4.10 percent for the second quarter of 2022, from 4.04 percent for the second quarter of 2021. The increase in the average balance of interest-earning assets mainly related to an increase in the Company’s level of average loans receivable for the second quarter of 2022, as compared to the second quarter of 2021.

The increase in interest income mainly related to an increase in the average balance on loans receivable of $173.5 million to $2.517 billion for the second quarter of 2022, from $2.344 billion for the second quarter of 2021. The increase in the average balance on loans receivable was result of the strength of the Company’s loan pipeline. Interest income on loans also included $152,000 of amortization of purchase credit fair value adjustments related to a prior acquisition for the second quarter of 2022, which added approximately two basis points to the average yield on interest earning assets.

Interest expense decreased by $1.2 million, or 31.0 percent, to $2.7 million for the second quarter of 2022, from $3.9 million for the second quarter of 2021. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 24 basis points to 0.50 percent for the second quarter of 2022, from 0.74 percent for the second quarter of 2021, partly offset by an increase in the average balance of interest-bearing liabilities of $44.4 million, or 2.1 percent, to $2.174 billion for the second quarter of 2022, from $2.129 billion for the second quarter of 2021. The decrease in the average cost of funds primarily resulted from the low interest rate environment and the Company’s focus on managing funding costs.

Net interest margin was 3.74 percent for the second quarter of 2022, compared to 3.47 percent for the second quarter of 2021. The increase in the net interest margin was the result of an increase in the average volume on loans receivable as well as a decrease in funding costs.

Due to improved quantitative and qualitative factors related to the Company’s asset quality metrics, no provision for loan losses was recorded for the second quarter of 2022. This compared to a $2.3 million provision for loan losses during the second quarter of 2021. During the second quarter of 2022, the Company experienced $133,000 in net recoveries compared to $300,000 in net charge offs for the second quarter of 2021. The Bank had non-accrual loans totaling $9.2 million, or 0.35 percent of gross loans at June 30, 2022, as compared to $22.2 million, or 0.94 percent of gross loans at June 30, 2021. The allowance for loan losses was $34.1 million, or 1.28 percent of gross loans at June 30, 2022, and $37.5 million, or 1.59 percent of gross loans at June 30, 2021.

Noninterest income decreased by $3.1 million, or 111.1 percent, to an expense of $313,000 for the second quarter of 2022, from $2.8 million for second quarter of 2021. The decrease in total noninterest income was mainly related to an increase in the unrealized loss of equity securities, a decrease in gains on the sale of premises, and a lower gain on sale of loans, partly offset by an increase in fees and service charges and other non-interest income. The unrealized loss on equity securities increased $2.8 million to $2.3 million for the second quarter of 2022, from an unrealized gain of $499,000 for the second quarter 2021. The unrealized gains or losses on equity securities are based on market conditions. Gains on the sale of premises sold were $371,000 for the second quarter of 2021 with no comparable gain or loss for the second quarter of 2022. Gains on sales of loans decreased by $175,000, or 80.3 percent, to $43,000 for the second quarter of 2022, from $218,000 for the second quarter of 2021. Factors considered when deciding to sell loans include market conditions, demand, and the loan portfolio. These decreases were partly offset by an increase in fees and service charge income resulting from servicing income, ATM, and other customer account fees.

Noninterest expense decreased by $101,000, or 0.8 percent, to $13.0 million for the second quarter of 2022, from $13.1 million for the second quarter of 2021. The decrease was mainly related to a decrease in debt extinguishment expense and other non-interest expense. The Company recognized an expense of $194,000 for a loss on extinguishment of debt related to the prepayment of higher-cost FHLB borrowings in the second quarter of 2021. There was no comparable expense in the second quarter of 2022. The decrease in other non-interest expense mainly related to a decrease in loan-related legal expenses. Salaries and employee benefits expense increased by $203,000, or 3.1 percent, to $6.7 million for the second quarter of 2022, from $6.5 million for the second quarter of 2021. The increase mainly related to payments made to the estate of former Chief Financial Officer, Thomas Keating. The number of full-time equivalent employees for the second quarter of 2022 was 301, compared to 303 for the first quarter of 2022, and 288 for the same period in 2021.

The income tax provision increased by $827,000, or 24.5 percent, to $4.2 million for the second quarter of 2022, from $3.4 million for the second quarter of 2021. The increase in the income tax provision was a result of higher taxable income for the second quarter of 2022, as compared with that same period for 2021. The consolidated effective tax rate for the second quarter of 2022 was 29.3 percent compared to 29.6 percent for the second quarter of 2021.

Year-to-Date 2022 Income Statement Review

Net interest income increased by $5.2 million, or 10.9 percent, to $52.8 million for the first six months of 2022, from $47.6 million for the first six months of 2021. The increase in net interest income resulted from a decrease of $3.1 million in interest expense as well as an increase of $2.1 million in interest income.

Interest income increased by $2.1 million, or 3.8 percent, to $58.2 million for the first six months of 2022, from $56.1 million for the first six months of 2021. The average balance of interest-earning assets increased $195.7 million, or 7.1 percent, to $2.935 billion for the first six months of 2022, from $2.739 billion for the first six months of 2021, while the average yield decreased 13 basis points to 3.97 percent for the first six months of 2022, from 4.10 percent for the first six months of 2021. The increase in the average balance of interest-earning assets mainly related to an increase in the Company’s level of average interest-earning deposits and loans receivable for the first six months of 2022, as compared to the first six months of 2021.

The increase in interest income mainly related to an increase in the average balance on loans receivable of $96.0 million to $2.431 billion for the first six months of 2022, from $2.335 billion for the first six months of 2021. The increase in the average balance on loans receivable was result of the strength of the Company’s loan pipeline. Interest income on loans also included $308,000 of amortization of purchase credit fair value adjustments related to a prior acquisition for the first six months of 2022, which added approximately four basis points to the average yield on interest earning assets.

Interest expense decreased by $3.1 million, or 36.4 percent, to $5.4 million for the first six months of 2022, from $8.5 million for the first six months of 2021. This decrease resulted primarily from a decrease in the average rate on interest-bearing liabilities of 30 basis points to 0.50 percent for the first six months of 2022, from 0.80 percent for the first six months of 2021, partly offset by an increase in the average balance of interest-bearing liabilities of $17.0 million, or 0.8 percent, to $2.141 billion for the first six months of 2022, from $2.124 billion for the first six months of 2021. The decrease in the average cost of funds primarily resulted from the low interest rate environment and the Company’s focus on managing funding costs.

Net interest margin was 3.60 percent for the first six months of 2022, compared to 3.48 percent for the first six months of 2021. The increase in the net interest margin compared to the first six months of 2021 was the result of an increase in the average volume on loans receivable as well as a decrease in funding costs.

The Company recorded a credit to the provision for loan losses of $2.6 million for the first six months of 2022, compared to a $4.2 million provision for loan losses for the first six months of 2021. During the first six months of 2022, the Company recorded $431,000 in net charge offs compared to $327,000 in net charge offs for the first six months of 2021.

Noninterest income decreased by $5.7 million, or 119.1 percent, to an expense of $913,000 for the first six months of 2022, from $4.8 million for second quarter of 2021. The decrease in total noninterest income was mainly related to an increase in the unrealized loss of equity securities, a lower gain on sales of loans, and a decrease in gains on the sale of premises, partly offset by an increase in fees and service charges. The unrealized loss on equity securities increased $5.3 million to $5.0 million for the first six months of 2022, from an unrealized gain of $303,000 for the first six months of 2021. The unrealized gains or losses on equity securities are based on market conditions. Gains on sales of loans decreased by $384,000, or 78.0 percent, to $108,000 for the first six months of 2022, from $492,000 for the first six months of 2021. Factors considered when deciding to sell loans include market conditions, demand, and the loan portfolio. Gains on the sale of premises sold were $371,000 for the first six months of 2021 with no comparable gain or loss for the first six months of 2022. These decreases were partly offset by an increase in fees and service charge income resulting from servicing income, ATM, and other customer account fees.

Noninterest expense decreased by $725,000, or 2.7 percent, to $26.0 million for the first six months of 2022, from $26.7 million for the first six months of 2021. The decrease was mainly related to a decrease in debt extinguishment expense and other non-interest expense. The Company recognized an expense of $734,000 for a loss on extinguishment of debt related to the prepayment of higher-cost FHLB borrowings in the first six months of 2021. There was no comparable expense in the first six months of 2022. Salaries and employee benefits expense increased by $394,000, or 3.0 percent, to $13.4 million for the first six months of 2022, from $13.0 million for the first six months of 2021. The increase mainly related to payments made to the estate of former Chief Financial Officer, Thomas Keating and normal compensation increases. The number of full-time equivalent employees for the first six months of 2022 was 302 compared to 300 for the same period of 2021.

The income tax provision increased by $2.0 million, or 31.9 percent, to $8.3 million for the first six months of 2022, from $6.3 million for the first six months of 2021. The increase in the income tax provision was a result of higher taxable income for the first six months of 2022, as compared with that same period for 2021. The consolidated effective tax rate for the first six months of 2022 was 29.3 percent compared to 29.4 percent for the first six months of 2021.

Asset Quality

The Bank had non-accrual loans totaling $9.2 million, or 0.35 percent of gross loans at June 30, 2022, as compared to $14.9 million, or 0.64 percent of gross loans at December 31,2021 and $22.2 million, or 0.94 percent of gross loans at June 30, 2021. The allowance for loan losses was $34.1 million, or 1.28 percent of gross loans at June 30, 2022, $37.1 million or 1.58 percent of gross loans at December 31,2021and $37.5 million, or 1.59 percent of gross loans at June 30, 2021. The allowance for loan losses was 370.7 percent of non-accrual loans at June 30, 2022, 249.3 percent of non-accrual loans at December 31,2021and 169.0 percent of non-accrual loans at June 30, 2021.

Performing troubled debt restructured (“TDR”) loans that were not included in non-accrual loans at June 30, 2022, were $11.0 million, compared to $12.4 million at December 31, 2021. Borrowers who are in financial difficulty and who have been granted concessions (excluding COVID-19 modifications) that may include interest rate reductions, term extensions, or payment alterations, are categorized as TDR loans.

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 29 branch offices in Bayonne, Carteret, Edison, Hoboken, Fairfield, Holmdel, Jersey City, 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 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: the inability to close loans in our pipeline; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; supply chain disruptions; the COVID-19 pandemic or any similar future pandemic and the related adverse local and national economic consequences; civil unrest in the communities that the company serves; 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; 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.

Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s financial results for the periods in question.

The Company provides measurements and ratios based on tangible stockholders' equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

	Statements of Income - Three Months Ended,
	June 30, 2022			March 31, 2022			June 30, 2021			June 30, 2022 vs. March 31, 2022			June 30, 2022 vs. June 30, 2021
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	28,781		$	26,321		$	26,888		9.3	%		7.0	%
Mortgage-backed securities		47			159			167		-70.4	%		-71.9	%
Other investment securities		939			948			747		-0.9	%		25.7	%
FHLB stock and other interest earning assets		694			296			202		134.5	%		243.6	%
Total interest and dividend income		30,461			27,724			28,004		9.9	%		8.8	%
Interest expense:
Deposits:
Demand		946			758			1,150		24.8	%		-17.7	%
Savings and club		110			108			127		1.9	%		-13.4	%
Certificates of deposit		849			980			1,639		-13.4	%		-48.2	%
		1,905			1,846			2,916		3.2	%		-34.7	%
Borrowings		815			806			1,024		1.1	%		-20.4	%
Total interest expense		2,720			2,652			3,940		2.6	%		-31.0	%
Net interest income		27,741			25,072			24,064		10.6	%		15.3	%
(Reversal) provision for loan losses		-			(2,575	)		2,295		-100.0	%		-100.0	%
Net interest income after provision for loan losses		27,741			27,647			21,769		0.3	%		27.4	%
Non-interest income:
Fees and service charges		1,213			1,214			1,029		-0.1	%		17.9	%
Gain on sales of loans		43			65			218		-33.8	%		-80.3	%
Loss on sale of impaired loans		-			-			(64	)
Gain on sale of premises		-			-			371
Realized and unrealized (loss) gain on equity investments		(2,302	)		(2,685	)		499		-14.3	%		-561.3	%
BOLI income		686			755			729		-9.1	%		-5.9	%
Other		47			51			38		-7.8	%		23.7	%
Total non-interest income		(313	)		(600	)		2,820		-47.8	%		-111.1	%
Non-interest expense:
Salaries and employee benefits		6,715			6,736			6,512		-0.3	%		3.1	%
Occupancy and equipment		2,673			2,695			2,668		-0.8	%		0.2	%
Data processing and communications		1,469			1,465			1,527		0.3	%		-3.8	%
Professional fees		489			494			491		-1.0	%		-0.4	%
Director fees		296			321			310		-7.8	%		-4.5	%
Regulatory assessment fees		244			304			314		-19.7	%		-22.3	%
Advertising and promotions		254			141			109		80.1	%		133.0	%
Other real estate owned, net		4			1			19		300.0	%		-78.9	%
Loss from extinguishment of debt		-			-			194					-100.0	%
Other		912			802			1,013		13.7	%		-10.0	%
Total non-interest expense		13,056			12,959			13,157		0.7	%		-0.8	%
Income before income tax provision		14,372			14,088			11,432		2.0	%		25.7	%
Income tax provision		4,209			4,136			3,382		1.8	%		24.5	%
Net Income		10,163			9,952			8,050		2.1	%		26.2	%
Preferred stock dividends		138			276			284		-49.9	%		-51.4	%
Net Income available to common stockholders	$	10,025		$	9,676		$	7,766		3.6	%		29.1	%
Net Income per common share-basic and diluted
Basic	$	0.59		$	0.57		$	0.45		3.5	%		31.1	%
Diluted	$	0.58		$	0.56		$	0.45		2.9	%		28.0	%
Weighted average number of common shares outstanding
Basic		16,997			16,980			17,126		0.1	%		-0.8	%
Diluted		17,404			17,343			17,282		0.4	%		0.7	%

	Statements of Income - Six Months Ended,
	June 30,2022			June 30, 2021			June 30, 2022 vs. June 30, 2021
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	55,102		$	53,751		2.5	%
Mortgage-backed securities		206			373		-44.8	%
Other investment securities		1,887			1,531		23.3	%
FHLB stock and other interest earning assets		990			424		133.5	%
Total interest and dividend income		58,185			56,079		3.8	%
Interest expense:
Deposits:
Demand		1,704			2,348		-27.4	%
Savings and club		218			245		-11.0	%
Certificates of deposit		1,829			3,631		-49.6	%
		3,751			6,224		-39.7	%
Borrowings		1,621			2,229		-27.3	%
Total interest expense		5,372			8,453		-36.4	%
Net interest income		52,813			47,626		10.9	%
(Reversal) provision for loan losses		(2,575	)		4,160		-161.9	%
Net interest income after provision for loan losses		55,388			43,466		27.4	%
Non-interest income:
Fees and service charges		2,427			2,140		13.4	%
Gain on sales of loans		108			492		-78.0	%
Loss on sale of impaired loans		-			(64	)	-100.0	%
Realized and unrealized (loss) gain on equity investments		(4,987	)		303		-1745.9	%
BOLI income		1,441			1,430		0.8	%
Gain on sale of premises		-			371		-100.0	%
Other		98			98		0.0	%
Total non-interest income		(913	)		4,770		-119.1	%
Non-interest expense:
Salaries and employee benefits		13,451			13,057		3.0	%
Occupancy and equipment		5,368			5,621		-4.5	%
Data processing and communications		2,934			2,982		-1.6	%
Professional fees		983			903		8.9	%
Director fees		617			557		10.8	%
Regulatory assessments		548			690		-20.6	%
Advertising and promotions		395			193		104.7	%
Other real estate owned, net		5			23		-78.3	%
Loss from extinguishment of debt		-			734		-100.0	%
Other		1,714			1,980		-13.4	%
Total non-interest expense	$	26,015		$	26,740		-2.7	%
Income before income tax provision		28,460			21,496		32.4	%
Income tax provision		8,345			6,329		31.9	%
Net Income		20,115			15,167		32.6	%
Preferred stock dividends		414			567		-27.0	%
Net Income available to common stockholders	$	19,701		$	14,600		34.9	%
Net Income per common share-basic and diluted
Basic	$	1.16		$	0.85		36.4	%
Diluted	$	1.13		$	0.85		33.4	%
Weighted average number of common shares outstanding
Basic		16,989			17,120		-0.8	%
Diluted		17,375			17,257		0.7	%

Statements of Financial Condition	June 30, 2022			March 31, 2022			June 30, 2021			June 30, 2022 vs. March 31, 2022		June 30, 2022 vs. June 30, 2021
ASSETS	(In Thousands, Unaudited)
Cash and amounts due from depository institutions	$	10,182		$	8,448		$	9,039		20.5	%	12.6	%
Interest-earning deposits		195,990			388,205			319,218		-49.5	%	-38.6	%
Total cash and cash equivalents		206,172			396,653			328,257		-48.0	%	-37.2	%
Interest-earning time deposits		735			735			735		-		-
Debt securities available for sale		86,749			86,307			83,543		0.5	%	3.8	%
Equity investments		18,968			21,269			20,841		-10.8	%	-9.0	%
Loans held for sale		5			325			3,154		-98.5	%	-99.8	%
Loans receivable, net of allowance for loan losses
of $34,113, $33,980 and $37,472, respectively		2,620,630			2,395,930			2,312,559		9.38	%	13.32	%
Federal Home Loan Bank of New York stock, at cost		6,781			6,128			8,881		10.7	%	-23.6	%
Premises and equipment, net		11,075			11,646			13,819		-4.9	%	-19.9	%
Accrued interest receivable		10,315			9,593			10,621		7.5	%	-2.9	%
Other real estate owned		75			75			414		0.0	%	-81.9	%
Deferred income taxes		13,583			13,016			13,778		4.4	%	-1.4	%
Goodwill and other intangibles		5,406			5,417			5,458		-0.2	%	-1.0	%
Operating lease right-of-use asset		12,194			11,883			13,980		2.6	%	-12.8	%
Bank-owned life insurance ("BOLI")		70,426			73,240			70,963		-3.8	%	-0.8	%
Other assets		9,657			8,093			8,187		19.3	%	18.0	%
Total Assets	$	3,072,771		$	3,040,310		$	2,895,190		1.1	%	6.1	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits	$	595,167		$	621,402		$	492,014		-4.2	%	21.0	%
Interest bearing deposits		2,059,863			2,009,773			1,953,800		2.5	%	5.4	%
Total deposits		2,655,030			2,631,175			2,445,814		0.9	%	8.6	%
FHLB advances		86,986			71,848			128,436		21.1	%	-32.3	%
Subordinated debentures		37,391			37,333			37,159		0.2	%	0.6	%
Operating lease liability		12,496			12,180			14,256		2.6	%	-12.3	%
Other liabilities		9,231			11,615			11,001		-20.5	%	-16.1	%
Total Liabilities		2,801,134			2,764,151			2,636,666		1.3	%	6.2	%
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000 shares authorized		-			-			-
Additional paid-in capital preferred stock		16,563			26,213			25,723		-36.8	%	-35.6	%
Common stock: no par value, 40,000 shares authorized		-			-			-
Additional paid-in capital common stock		194,567			194,222			192,968		0.2	%	0.8	%
Retained earnings		95,393			88,132			68,123		8.2	%	40.0	%
Accumulated other comprehensive loss		(2,997	)		(1,275	)		(93	)	135.1	%	3122.6	%
Treasury stock, at cost		(31,889	)		(31,133	)		(28,197	)	2.4	%	13.1	%
Total Stockholders' Equity		271,637			276,159			258,524		-1.6	%	5.1	%
Total Liabilities and Stockholders' Equity	$	3,072,771		$	3,040,310		$	2,895,190		1.1	%	6.1	%
Outstanding common shares		16,960			16,985			17,077

	Three Months Ended June 30,
	2022								2021
	Average Balance			Interest Earned/Paid		Average Yield/Rate (3)			Average Balance			Interest Earned/Paid		Average Yield/Rate (3)
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable (4)(5)	$	2,517,283		$	28,781	4.57	%		$	2,343,775		$	26,888	4.59	%
Investment Securities		107,132			986	3.68	%			105,520			914	3.46	%
FHLB stock and other interest-earning assets		344,510			694	0.81	%			322,966			202	0.25	%
Total Interest-earning assets		2,968,926			30,461	4.10	%			2,772,262			28,004	4.04	%
Non-interest-earning assets		107,156								107,412
Total assets	$	3,076,081							$	2,879,673
Interest-bearing liabilities:
Interest-bearing demand accounts	$	796,227		$	569	0.29	%		$	631,568		$	703	0.45	%
Money market accounts		356,062			376	0.42	%			335,877			447	0.53	%
Savings accounts		346,432			110	0.13	%			315,210			127	0.16	%
Certificates of Deposit		565,479			850	0.60	%			676,163			1,639	0.97	%
Total interest-bearing deposits		2,064,199			1,905	0.37	%			1,958,818			2,916	0.60	%
Borrowed funds		109,436			815	2.98	%			170,433			1,024	2.40	%
Total interest-bearing liabilities		2,173,636			2,720	0.50	%			2,129,250			3,940	0.74	%
Non-interest-bearing liabilities		631,430								494,929
Total liabilities		2,805,066								2,624,179
Stockholders' equity		271,015								255,494
Total liabilities and stockholders' equity	$	3,076,081							$	2,879,673
Net interest income				$	27,741							$	24,064
Net interest rate spread(1)						3.60	%							3.30	%
Net interest margin(2)						3.74	%							3.47	%
(1)     Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
(2)     Net interest margin represents net interest income divided by average total interest-earning assets.
(3)     Annualized.
(4)     Excludes allowance for loan losses.
(5)     Includes non-accrual loans which are immaterial to the yield

	Six Months Ended June 30,
	2022								2021
	Average Balance			Interest Earned/Paid		Average Yield/Rate (3)			Average Balance			Interest Earned/Paid			Average Yield/Rate (3)
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable (4) (5)	$	2,431,043		$	55,102	4.53	%		$	2,335,051		$	53,751		4.60	%
Investment Securities		108,024			2,093	3.88	%			109,967			1,904		3.46	%
FHLB stock and other interest-earning assets		395,512			990	0.50	%			293,827			424		0.29	%
Total Interest-earning assets		2,934,580			58,185	3.97	%			2,738,845			56,079		4.10	%
Non-interest-earning assets		104,666								108,486
Total assets	$	3,039,245							$	2,847,331
Interest-bearing liabilities:
Interest-bearing demand accounts	$	751,396		$	967	0.26	%		$	621,287		$	1,460		0.47	%
Money market accounts		350,842			736	0.42	%			326,565			888		0.54	%
Savings accounts		341,531			218	0.13	%			309,010			245		0.16	%
Certificates of Deposit		588,518			1,828	0.62	%			679,550			3,631		1.07	%
Total interest-bearing deposits		2,032,286			3,751	0.37	%			1,936,413			6,224		0.64	%
Borrowed funds		109,272			1,621	2.97	%			188,096			2,229		2.37	%
Total interest-bearing liabilities		2,141,558			5,372	0.50	%			2,124,509			8,453		0.80	%
Non-interest-bearing liabilities		626,520								469,808
Total liabilities		2,768,078								2,594,317
Stockholders' equity		271,168								253,014
Total liabilities and stockholders' equity	$	3,039,245							$	2,847,331
Net interest income				$	52,813							$	47,626
Net interest rate spread(1)						3.46	%								3.30	%
Net interest margin(2)						3.60	%								3.48	%
(1)     Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
(2)     Net interest margin represents net interest income divided by average total interest-earning assets.
(3)     Annualized.
(4)     Excludes allowance for loan losses.
(5)     Includes non-accrual loans which are immaterial to the yield

	Financial Condition data by quarter
	Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021
	(In thousands, except book values)
Total assets	$	3,072,771		$	3,040,310		$	2,967,528		$	2,983,787		$	2,895,190
Cash and cash equivalents		206,172			396,653			411,629			442,938			328,257
Securities		105,717			107,576			110,373			106,137			104,384
Loans receivable, net		2,620,630			2,395,930			2,304,942			2,289,854			2,312,559
Deposits		2,655,030			2,631,175			2,561,402			2,541,405			2,445,814
Borrowings		124,377			109,181			108,986			155,790			165,595
Stockholders’ equity		271,637			276,159			274,024			263,081			258,524
Book value per common share1	$	15.02		$	14.72		$	14.47		$	13.93		$	13.63
Tangible book value per common share2	$	14.71		$	14.41		$	14.16		$	13.62		$	13.32
	Operating data by quarter
	Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021
	(In thousands, except for per share amounts)
Net interest income	$	27,741		$	25,072		$	25,154		$	24,613		$	24,064
(Reversal) provision for loan losses		-			(2,575	)		(985	)		680			2,295
Non-interest income		(313	)		(600	)		2,608			1,317			2,820
Non-interest expense		13,056			12,959			13,707			13,528			13,157
Income tax expense		4,209			4,136			4,289			3,400			3,382
Net income	$	10,163		$	9,952		$	10,751		$	8,322		$	8,050
Net income per diluted share	$	0.58		$	0.56		$	0.61		$	0.47		$	0.45
Common Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.14
	Financial Ratios3
	Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021
Return on average assets		1.32	%		1.33	%		1.42	%		1.13	%		1.12	%
Return on average stockholder’s equity		15.00	%		14.67	%		16.25	%		12.84	%		12.60	%
Net interest margin		3.74	%		3.46	%		3.44	%		3.46	%		3.47	%
Stockholder’s equity to total assets		8.84	%		9.08	%		9.23	%		8.82	%		8.93	%
Efficiency Ratio4		47.60	%		52.95	%		49.37	%		52.17	%		48.94	%
	Asset Quality Ratios
	Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021
	(In thousands, except for ratio %)
Non-Accrual Loans	$	9,201		$	9,232		$	14,889		$	20,725		$	22,174
Non-Accrual Loans as a % of Total Loans		0.35	%		0.38	%		0.64	%		0.89	%		0.94	%
ALLL as % of Non-Accrual Loans		370.7	%		368.1	%		249.3	%		184.1	%		169.0	%
Impaired Loans	$	42,411		$	40,955		$	49,382		$	58,863		$	62,281
Classified Loans	$	31,426		$	29,850		$	39,157		$	48,547		$	51,926
(1) Calculated by dividing stockholders' equity, less preferred equity, to shares outstanding.
(2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”
(3) Ratios are presented on an annualized basis, where appropriate.
(4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”

	Recorded Investment in Loans Receivable by quarter
	Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021
	(In thousands)
Residential one-to-four family	$	235,883		$	233,251		$	224,534		$	224,330		$	229,365
Commercial and multi-family		2,030,597			1,804,815			1,720,174			1,739,976			1,714,848
Construction		155,070			141,082			153,904			149,076			181,312
Commercial business		181,868			198,216			191,139			161,416			172,129
Home equity		51,808			52,279			50,469			52,109			53,333
Consumer		2,656			2,726			3,717			2,730			459
	$	2,657,882		$	2,432,369		$	2,343,937		$	2,329,637		$	2,351,446
Less:
Deferred loan fees, net		(3,139	)		(2,459	)		(1,876	)		(1,627	)		(1,415	)
Allowance for loan loss		(34,113	)		(33,980	)		(37,119	)		(38,156	)		(37,472	)
Total loans, net	$	2,620,630		$	2,395,930		$	2,304,942		$	2,289,854		$	2,312,559
	Non-Accruing Loans in Portfolio by quarter
	Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021
	(In thousands)
Residential one-to-four family	$	267		$	278		$	282		$	455		$	464
Commercial and multi-family		757			757			8,601			13,322			14,673
Construction		3,043			2,954			2,847			2,787			2,787
Commercial business		5,104			5,243			3,132			4,128			4,216
Home equity		30			-			27			33			34
Total:	$	9,201		$	9,232		$	14,889		$	20,725		$	22,174

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
	Tangible Book Value per Share
	Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021
	(In thousands, except per share amounts)
Total Stockholders' Equity	$	271,637		$	276,159		$	274,024		$	263,081		$	258,524
Less: goodwill		5,252			5,252			5,252			5,252			5,252
Less: preferred stock		16,563			26,213			28,923			25,723			25,723
Total tangible common stockholders' equity		249,822			244,694			239,849			232,106			227,549
Shares common shares outstanding		16,984			16,984			16,940			17,036			17,077
Book value per common share	$	15.02		$	14.72		$	14.47		$	13.93		$	13.63
Tangible book value per common share	$	14.71		$	14.41		$	14.16		$	13.62		$	13.32
	Efficiency Ratios
	Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021
	(In thousands, except for ratio %)
Net interest income	$	27,741		$	25,072		$	25,154		$	24,613		$	24,064
Non-interest income		(313	)		(600	)		2,608			1,317			2,820
Total income		27,428			24,472			27,762			25,930			26,884
Non-interest expense		13,056			12,959			13,707			13,528			13,157
Efficiency Ratio		47.60	%		52.95	%		49.37	%		52.17	%		48.94	%
	Distribution of Deposits by quarter
	Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021
	(In thousands)
Demand:
Non-Interest Bearing	$	595,167		$	621,403		$	588,207		$	544,619		$	492,014
Interest Bearing		810,535			724,020			668,262			644,453			619,163
Money Market		360,356			354,302			337,126			351,508			344,512
Sub-total:	$	1,766,058		$	1,699,725		$	1,593,595		$	1,540,580		$	1,455,689
Savings and Club		347,279			341,529			329,724			326,807			316,244
Certificates of Deposit		541,693			589,921			638,083			674,018			673,881
Total Deposits:	$	2,655,030		$	2,631,175		$	2,561,402		$	2,541,405		$	2,445,814

Contact:

Thomas Coughlin,
President & CEO
Ryan Blake, COO
1 (800) 680-6872

FAQ

What is the dividend amount declared by BCB Bancorp in Q2 2022?

BCB Bancorp declared a quarterly cash dividend of $0.16 per share.

When is the dividend payable for BCB Bancorp?

The dividend will be payable on August 15, 2022, to shareholders of record as of August 1, 2022.

What was the net income for BCB Bancorp in Q2 2022?

The net income for BCB Bancorp in Q2 2022 was $10.2 million.

How much did the net interest margin increase for BCB Bancorp in Q2 2022?

The net interest margin increased by 27 basis points to 3.74% in Q2 2022.

What impact did BCB Bancorp's asset quality metrics have in Q2 2022?

BCB Bancorp recorded no loan loss provision in Q2 2022, with non-accrual loans decreasing to 0.35%.