BCB Bancorp(BCBP) - 2019 Q3 - Quarterly Report

Financial Position - Total assets increased by $150.8 million, or 5.6 percent, to $2.825 billion at September 30, 2019 from $2.675 billion at December 31, 2018[130] - Loans receivable decreased by $24.8 million, or 1.1 percent, to $2.254 billion at September 30, 2019 from $2.278 billion at December 31, 2018[130] - Total cash and cash equivalents increased by $181.3 million, or 92.9 percent, to $376.6 million at September 30, 2019 from $195.3 million at December 31, 2018[130] - Deposit liabilities increased by $82.7 million, or 3.8 percent, to $2.263 billion at September 30, 2019 from $2.181 billion at December 31, 2018[130] - Stockholders' equity increased by $23.5 million, or 11.7 percent, to $223.7 million at September 30, 2019 from $200.2 million at December 31, 2018[130] - The allowance for loan losses was $22.4 million, or 309.6 percent of non-accruing loans, at September 30, 2019[130] - Total investment securities decreased by $22.9 million, or 18.1 percent, to $104.0 million at September 30, 2019 from $127.0 million at December 31, 2018[130] - Debt obligations increased by $30.2 million, or 10.7 percent, to $312.6 million at September 30, 2019 from $282.4 million at December 31, 2018[130] - The Company had total borrowings of $312.5 million at September 30, 2019, up from $282.4 million at December 31, 2018[142] Income and Expenses - Net income increased by $638,000, or 13.9%, to $5.2 million for the three months ended September 30, 2019, compared to $4.6 million for the same period in 2018[136] - Net interest income rose by $680,000, or 3.4%, to $20.8 million for the three months ended September 30, 2019, from $20.1 million for the same period in 2018[136] - Total non-interest income decreased by $469,000, or 25.3 percent, to $1.4 million for the three months ended September 30, 2019, from $1.9 million for the same period in 2018[138] - Total non-interest expense decreased by $739,000, or 5.1 percent, to $13.7 million for the three months ended September 30, 2019, from $14.4 million for the same period in 2018[138] - The income tax provision increased by $319,000, or 15.6 percent, to $2.4 million for the three months ended September 30, 2019, from $2.0 million for the same period in 2018[138] Interest Income and Expenses - Interest income on loans receivable increased by $2.8 million, or 10.9%, to $28.9 million for the three months ended September 30, 2019[136] - Average balance of interest-earning assets increased by $213.0 million, or 8.5%, to $2.710 billion for the three months ended September 30, 2019[136] - Average yield on interest-earning assets increased by 15 basis points to 4.63% for the three months ended September 30, 2019[136] - Total interest expense increased by $2.7 million, or 34.4%, to $10.6 million for the three months ended September 30, 2019[136] - Average balance of interest-bearing liabilities increased by $173.6 million, or 8.3%, to $2.265 billion for the three months ended September 30, 2019[136] - Average rate on interest-bearing liabilities increased by 36 basis points to 1.87% for the three months ended September 30, 2019[136] Loan Performance - Non-accrual loans totaled $5.1 million, or 0.22 percent, of gross loans at September 30, 2019, down from $7.2 million, or 0.31 percent, at December 31, 2018[138] - The allowance for loan losses was $24.7 million, or 1.08 percent, of gross loans at September 30, 2019, compared to $22.4 million, or 0.97 percent, at December 31, 2018[138] - Interest income on loans receivable increased by $16.1 million, or 23.2 percent, to $85.7 million for the nine months ended September 30, 2019[140] - The average balance of loans receivable rose by $334.5 million, or 16.9 percent, to $2.318 billion for the nine months ended September 30, 2019[140] - The provision for loan losses decreased by $1.8 million to $2.5 million for the nine months ended September 30, 2019[140] Capital Ratios - As of September 30, 2019, BCB Community Bank's total capital to risk-weighted assets ratio was 13.03%, exceeding the minimum requirement of 8.00%[144] - The Tier 1 capital to risk-weighted assets ratio was 11.88%, above the required 6.00%[144] - Common Equity Tier 1 Capital to risk-weighted assets ratio stood at 11.88%, surpassing the minimum requirement of 4.50%[144] - The capital conservation buffer reached 2.5% in 2019, in compliance with regulatory requirements[143] Risk Management - The bank is evaluating the option to utilize the community bank leverage ratio of 9% for institutions under $10 billion in assets[143] - The bank's management regularly monitors interest rate risk through an Asset/Liability Committee[145] - The net portfolio value (NPV) at "PAR" was $240,313,000, with a potential decrease of 7.00% if interest rates increase by 100 basis points[146] - A 200 basis point increase in interest rates would result in a decrease of 16.72% in NPV[146] Compliance and Legal Matters - The bank's disclosure controls and procedures were deemed effective as of the end of the reporting period[147] - As of September 30, 2019, there were no material legal proceedings affecting the company's financial condition[148]