BAYONNE, NJ, October 15, 2020 (GLOBE NEWSWIRE) – BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company of BCB Community Bank (the “Bank”), announced today Its loan deferral data as of October 14, 2020 reflected strong reductions in global loan deferrals and positive trends in customer repayments. There has been 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 large majority of customers return to their usual payment schedules.
“As a community bank, we are delighted with the positive trends in our loan portfolio and the engagement of our staff as we reduced the total percentage of loan deferrals by over 30% in the second quarter. 2020 to less than 1%. as of October 14, 2020. The data indicates that the majority of our deferred loan clients have returned to regular payment status. At the onset of the COVID-19 pandemic, we worked closely with our customers to ensure they had the support they needed to continue operating, given the unprecedented nature of the pandemic. The return to a normal payment status highlights both the Bank’s prudent underwriting process and the trust it places in its customers. For the remaining 12 loans, or approximately $ 10.8 million, which are currently deferred, we have determined that no specific reserves are required at this time, ”said Thomas Coughlin, President and CEO.
Here is a summary of postponements by type of loan (in thousands of dollars):
| Portfolio balance at 06/30/20 | Portfolio balance at 09/30/20 | Portfolio balance at 10/14/20 | |||||||
| Number loans |
Balance | Weighted Mean Interest Rate |
Number loans |
Balance | Weighted Mean Interest Rate |
Number loans |
Balance | Weighted Mean Interest Rate |
|
| Residential 1-4 Family | 131 | $ 50,073 | 4.3 | 2 | $ 789 | 5.0 | – | – | – |
| Commercial and multi-family | 371 | $ 473,861 | 4.4 | 45 | $ 54,708 | 4.5 | 11 | $9,620 | 4.1 |
| Construction | 3 | $ 17,959 | 5.5 | – | – | – | – | – | – |
| Business case | 81 | $ 32,185 | 5.7 | 9 | $ 3,856 | 5.6 | 1 | $1,149 | 6.0 |
| Home equity | 35 | $ 4,388 | 4.6 | 2 | 299 | 5.1 | – | – | – |
| Total | 621 | $ 578,466 | 4.6 | 59 | $ 59,652 | 4.6 | 12 | $10 769 | 4.3 |
The following is a summary of the first loan deferral deadlines (in thousands of dollars):
| Appeal report categories 1st Adjournment |
december 2020 | January 2021 | Total |
| Multi-family property | $ 283 | – | $ 283 |
| Owner-occupied commercial real estate | $ 1,149 | – | $ 1,149 |
| Commercial Real Estate Investment | – | $ 495 | $ 495 |
| Total | $ 1,432 | $ 495 | $ 1,927 |
The following is a summary of the second loan deferral deadlines (in thousands of dollars):
| Appeal report categories 2sd Adjournment |
december 2020 | January 2021 | Total |
| First mortgage on residence | $ 700 | $ 1,090 | $ 1,790 |
| Multi-family property | $ 350 | – | $ 350 |
| Owner-occupied commercial real estate | $ 877 | – | $ 877 |
| Commercial Real Estate Investment | $ 5,825 | – | $ 5,825 |
| Total | $ 7,752 | $ 1,090 | $ 8,842 |
About BCB Bancorp, Inc.
Founded in 2000 and headquartered in Bayonne, NJ, BCB Community Bank is the wholly owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has 31 branches 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 offers businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, visit www.bcb.bank.
In September 2019, the company announced its inclusion in the prestigious Sandler O’Neill Sm-All Stars category of 2019, an elite group of 30 listed small-cap and savings banks based on growth, profitability, credit quality and capital strength.
Forward-looking statements
This press release, like many written and oral communications presented by the Company and our authorized officers, may contain certain forward-looking statements regarding our forward-looking 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 wish these 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 we include this statement for the purposes of such safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identified by the use of the words “anticipate”, “believe”, “estimate”, “expect”, “Have the intention,” plan “,” project “,” seek “,” strive “,” try “or future or conditional verbs such as” could “,” can “,” should “,” will ” , “Want it” or similar expressions. Examples of forward-looking statements include, among others, statements we make regarding expected results of operations, such as revenue growth and earnings. Our ability to predict the actual results or effects of our plans or strategies is inherently uncertain. Therefore, actual results may differ materially from anticipated results. Any forward-looking statements made by us in this press release are based solely on information currently available to us and speak only as of the date on which they are made. Unless required by applicable law or regulation, we do not undertake to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, developments future or otherwise.
In addition to the factors previously disclosed in the Company’s reports filed with the United States Securities and Exchange Commission (the “SEC”) and those identified elsewhere in this press release, the following factors, among others, could cause actual results differ significantly from forecasts, statements or historical performance: the impact of the COVID-19 pandemic on the Company and the US and global financial markets; the containment measures adopted by the federal and state governments of the United States and by private companies in response to the COVID-19 pandemic; the deterioration of the US economy in general and the local economies in which the Company operates; the increase in credit losses due to the deterioration in the financial situation of the Bank’s borrowers; civil unrest in the communities served by the Company; unemployment levels in the Bank’s lending areas; changes in asset quality and credit risk; the inability to maintain revenue and profit growth; changes in interest rates and capital markets; inflation; customer acceptance of the Bank’s products and services; client borrowing, redemption, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; failure to achieve cost or revenue savings 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 government agencies, and legislative and regulatory actions and reforms.
As a result of the COVID-19 pandemic and the resulting adverse local and national economic consequences, the Company may be subject to one of the following additional risks, each of which could have a material adverse effect on our business, financial condition , our cash flow, and results of operations and could cause our actual results to differ materially from those shown in forward-looking statements:
- demand for our products and services may decline, making it difficult to grow assets and revenues;
- If the economy is unable to substantially reopen and high levels of unemployment persist for an extended period, loan delinquencies, problematic assets and foreclosures may increase, leading to increased burdens and reduced revenues ;
- collateral for loans, especially real estate, may lose value, which could lead to increased loan losses;
- our allowance for loan losses may need to be increased if borrowers experience financial difficulty beyond the forbearance periods, which will adversely affect our net income;
- the equity and liquidity of loan guarantors may decline, compromising their ability to honor their commitments to us;
- Due to the Federal Reserve’s target federal funds rate falling to nearly 0%, the return on our assets may decline more than the decline in the cost of our interest-bearing debt, which would reduce our net interest margin and our margin and reduce net income;
- a significant decline in net income over several quarters could result in a decrease in our quarterly cash dividend rate;
- our cybersecurity risks are increased due to the increase in the number of employees working remotely;
- we rely on third-party providers for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have a negative effect on us; and
- FDIC premiums may increase if the agency incurs additional resolution fees.
Annualized, pro forma, projected and estimated figures are used for illustration purposes only, are not forecasts and may not reflect actual results.
