BCB Bancorp(BCBP) - 2019 Q2 - Quarterly Report

Financial Position - Total assets increased by $63.4 million, or 2.4%, to $2.738 billion at June 30, 2019 from $2.675 billion at December 31, 2018[130] - Loans receivable increased by $21.3 million, or 0.9%, to $2.300 billion at June 30, 2019 from $2.278 billion at December 31, 2018[130] - Total cash and cash equivalents increased by $32.4 million, or 16.6%, to $227.6 million at June 30, 2019 from $195.2 million at December 31, 2018[130] - Deposit liabilities increased by $27.5 million, or 1.3%, to $2.208 billion at June 30, 2019 from $2.181 billion at December 31, 2018[130] - Stockholders' equity increased by $20.9 million, or 10.5%, to $221.2 million at June 30, 2019 from $200.3 million at December 31, 2018[130] - Retained earnings increased by $4.9 million to $43.3 million at June 30, 2019 from $38.4 million at December 31, 2018[130] - The allowance for loan losses was $23.8 million, or 433.5% of non-accruing loans and 1.02% of gross loans, at June 30, 2019[130] Income Statement - Net income increased by $2.9 million, or 126.0%, to $5.2 million for the three months ended June 30, 2019, compared to $2.3 million for the same period in 2018[136] - Net interest income rose by $875,000, or 4.4%, to $20.9 million for the three months ended June 30, 2019, from $20.0 million in the same period of 2018[136] - Interest income on loans receivable increased by $4.6 million, or 19.1%, to $28.6 million for the three months ended June 30, 2019[136] - Total non-interest income decreased by $235,000, or 15.0 percent, to $1.3 million for the three months ended June 30, 2019[138] - Total non-interest expense decreased by $2.1 million, or 13.1 percent, to $13.9 million for the three months ended June 30, 2019[138] - The income tax provision increased by $1.1 million, or 93.1 percent, to $2.3 million for the three months ended June 30, 2019[138] Interest and Yield - Average balance of interest-earning assets increased by $361.0 million, or 15.9%, to $2.638 billion for the three months ended June 30, 2019[136] - Average yield on loans increased by 18 basis points to 4.92% for the three months ended June 30, 2019, compared to 4.74% for the same period in 2018[136] - Total interest expense increased by $4.2 million, or 73.1%, to $9.9 million for the three months ended June 30, 2019[136] - Average rate on interest-bearing liabilities increased by 59 basis points to 1.80% for the three months ended June 30, 2019[136] - Interest income on other interest-earning assets increased by $558,000, or 90.7%, to $1.2 million for the three months ended June 30, 2019[136] Loan Performance - Provision for loan losses decreased by $1.3 million to $755,000 for the three months ended June 30, 2019, from $2.1 million for the same period in 2018[138] - Non-accrual loans totaled $5.5 million, or 0.24 percent, of gross loans at June 30, 2019[138] - The allowance for loan losses was $23.8 million, or 1.02 percent, of gross loans at June 30, 2019[138] Capital Ratios - As of June 30, 2019, the total capital to risk-weighted assets ratio was 12.67%, exceeding the required 8.00%[146] - The Tier 1 capital to risk-weighted assets ratio stood at 11.57%, above the minimum requirement of 6.00%[146] - Common Equity Tier 1 Capital to risk-weighted assets was reported at 12.01%, surpassing the 8.00% requirement[146] Interest Rate Risk Management - The company has established an Asset/Liability Committee to manage interest rate risk and evaluate the inherent risks in assets and liabilities[147] - Senior management regularly monitors interest rate risk, with quarterly reviews conducted by the Asset/Liability Committee[147] - The company assumes a 48-month term for core deposits without stated maturity dates in its NPV calculations[147] - The NPV table indicates that actual results may differ from the modeled assumptions due to inherent shortcomings in the methodology[148] NPV Analysis - The company's net portfolio value (NPV) at PAR was $239,801,000[148] - A 100 basis point increase in interest rates would decrease the NPV to 8.30%[148] - The NPV for a 200 basis point increase would be $192,493,000, reflecting a 19.73% decrease from PAR[148]