BCB Bancorp, Inc., Announces Quarterly Earnings, Increase in Quarterly Cash Dividend.

BAYONNE, N.J. -- BCB Bancorp, Inc., Bayonne, NJ (NASDAQ: BCBP) announced net earnings of $1.03 million for the quarter ended September 30, 2007 compared to $1.47 million for the quarter ended September 30, 2006. Basic and diluted earnings per share were $0.22 and $0.21 for the three months ended September 30, 2007 as compared to $0.29 and $0.28 per share respectively, for the three months ended September 30, 2006. The Company further reported net earnings of $3.42 million for the nine months ended September 30, 2007 as compared to $4.21 million for the nine months ended September 30, 2006. Basic and diluted earnings per share were $0.70 and $0.68 per share, respectively for the nine months ended September 30, 2007 as compared to $0.84 and $0.81 per share, respectively, for the nine months ended September 30, 2006. The Board of Directors unanimously approved a 12.5% increase in the quarterly cash dividend to $0.09 share for shareholders of record on October 30, 2007 payable on November 15, 2007.

As of September 30, 2007 total assets increased by $62.5 million or 12.2% to $573.3 million from $510.8 million at December 31, 2006. Total cash and cash equivalents increased by $13.0 million or 50.4% to $38.8 million at September 30, 2007 from $25.8 million at December 31, 2006. Loans receivable increased by $29.2 million or 9.2% to $347.3 million at September 30, 2007 from $318.1 million at December 31, 2006. Securities held-to-maturity increased by $17.3 million or 11.6% to $166.0 million at September 30, 2007 from $148.7 million at December 31, 2006. Deposits increased by $25.3 million or 6.6% to $408.0 million at September 30, 2007 from $382.7 million at December 31, 2006. Total stockholders' equity decreased by $2.91 million or 5.6% to $49.05 million at September 30, 2007 from $51.96 million at December 31, 2006. The decrease in stockholders' equity reflects decreases of $5.3 million due to the repurchase of our common stock and $1.1 million in cash dividends paid, partially offset by net income of $3.4 million and $44,000 realized from the exercise of stock options.

Net income decreased by $435,000 or 29.7% to $1.03 million for the three months ended September 30, 2007 from $1.47 million for the three months ended September 30, 2006. The decrease in net income was due to decreases in net interest income and non-interest income and increases in non-interest expense and the provision for loan losses, partially offset by a decrease in income tax expense. Net interest income decreased by $65,000 or 1.5% to $4.36 million for the three months ended September 30, 2007 from $4.43 million for the three months ended September 30, 2006. This decrease in net interest income resulted primarily from an increase of $55.4 million or 13.4% in the average balance of interest bearing liabilities to $467.7 million for the three months ended September 30, 2007 from $412.3 million for the three months ended September 30, 2006 and an increase in the average cost of interest bearing liabilities to 3.92% for the three months ended September 30, 2007 from 3.49% for the three months ended September 30, 2006. The average balance of interest earning assets increased by $56.8 million or 11.6% to $545.7 million for the three months ended September 30, 2007 from $488.9 million for the three months ended September 30, 2006 while the average yield on interest earning assets increased by one basis point to 6.56% for the three months ended September 30, 2007 from 6.55% for the three months ended September 30, 2006. As a consequence, our net interest margin decreased to 3.20% for the three months ended September 30, 2007 from 3.61% for the three months ended September 30, 2006. Non-interest expense increased for the three months ended September 30, 2007 primarily as a result of our growing franchise, the first full quarter of operation for the opening of our fourth office and an $84,000 expense related to the a non-provision allowed expense item relating to the placement of a loan facility into the real estate owned category. Provision for loan losses increased during the three months ended September 30, 2007 as loan volume increased markedly as compared to the three months ended September 30, 2006.

Net income decreased by $789,000 or 18.7% to $3.4 million for the nine months ended September 30, 2007 from $4.2 million for the nine months ended September 30, 2006. The decrease in net income was due to decreases in net interest income and non-interest income and an increase in non-interest expense partially offset by decreases in the provision for loan losses and income taxes. Net interest income decreased by $758,000 or 5.6% to $12.7 million for the nine months ended September 30, 2007 from $13.5 million for the nine months ended September 30, 2006. This decrease in net interest income resulted primarily from an increase of $38.1 million or 9.5% in the average balance of interest bearing liabilities to $441.1 million for the nine months ended September 30, 2007 from $403.0 million for the nine months ended September 30, 2006 and an increase in the average cost of interest bearing liabilities to 3.79% for the nine months ended September 30, 2007 from 3.16% for the nine months ended September 30, 2006. The average balance of interest earning assets increased by $41.6 million or 8.7% to $517.7 million for the nine months ended September 30, 2007 from $476.1 million for the nine months ended September 30, 2006 and the average yield of interest earning assets increased to 6.51% for the nine months ended September 30, 2007 from 6.45% for the nine months ended September 30, 2006. As a consequence, our net interest margin decreased to 3.28% for the nine months ended September 30, 2007 from 3.78% for the nine months ended September 30, 2006. The provision for loan losses decreased during the nine months ended September 30, 2007 as loan growth for that time period began in earnest during the third quarter and allowance entries were made commensurate with that growth as opposed to more consistent growth which occurred during and through the nine months ended September 30, 2006.

Donald Mindiak, President & CEO commented, "Loan growth through the first nine months provides an encouraging sign that lending opportunities in our primary marketplace remain active. This loan growth has resulted in increasing interest income which continues to provide the majority of our operating income. Given the current state of the real estate market and despite the fact that our balance sheet possesses no exposure to the sub-prime market, prudence dictates that we continue to record additional allowance entries in an effort to bolster our reserve balances. Competitive pricing on the liability side of our balance sheet remains challenging; however enhanced marketing efforts are being employed in an effort to increase core deposits, thereby prospectively reducing interest expense.

"By virtue of a unanimous vote of the Board of Directors, our cash dividend payout has increased by 12.5% to $0.09/share to shareholders of record on October 30th, 2007, payable on November 15th, 2007, reflecting the Board's philosophy in providing our shareholders with a competitive return on investment. This represents a dividend payout ratio of 42.9% which we believe compares favorably with our peers. Likewise, the continuing execution of our stock repurchase plan is consistent with the Board's mindset of the implementation and execution of initiatives which have the capacity of increasing franchise and shareholder value."

BCB Community Bank presently operates four offices, three located in Bayonne and one located in Hoboken, New Jersey.

Please contact Donald Mindiak, President & CEO or Thomas Coughlin, Chief Operating Officer regarding any question at 201-823-0700.

This discussion, and other written material, and statements management may make, may contain certain forward-looking statements regarding the Company's 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. The Company intends 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 is including this statement for purposes of said safe harbor provisions.

Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in the Company's Annual Report on Form 10-K and in other documents filed by the Company with the FDIC or the Securities and Exchange Commission from time to time. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identified by the use of the words "plan," "believe," "expect," "intend," "anticipate," "estimate," "project," "may," "will," "should," "could," "predicts," "forecasts," "potential," or "continue" or similar terms or the negative of these terms. The Company's ability to predict results or the actual effects of its plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

Factors that could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in market interest rates, general economic conditions, legislation, and regulation; changes in monetary and fiscal policies of the United States Government, including policies of the United States Treasury and Federal Reserve Board; changes in the quality or composition of the loan or investment portfolios; changes in deposit flows, competition, and demand for financial services, loan, deposit, and investment products in the Company's local markets; changes in accounting principles and guidelines; war or terrorist activities; and other economic, competitive, governmental, regulatory, geopolitical and technological factors affecting the Company's operations, pricing and services.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this discussion. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law or regulation, the Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

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