BCB Bancorp, Inc. Announces Second Quarter Earnings.

BAYONNE, N.J. -- BCB Bancorp, Inc., Bayonne, NJ (OTCBB:BCBP) announced unaudited net earnings for the quarter ended June 30, 2004 of $770,000 compared to $572,000 for the quarter ended June 30, 2003. Basic and diluted earnings per share were $0.32 and $0.31 per share respectively for the three months ended June 30 2004 as compared to $0.25 and $0.24 per share for the three months ended June 30, 2003. The weighted average number of common shares outstanding for the three months ended June 30, 2004 for basic and diluted earnings per share calculation purposes was 2,394,000 and 2,488,000 respectively. The weighted average number of common shares outstanding for the three months ended June 30, 2003 for basic and diluted earnings per share calculation purposes was 2,297,000 and 2,362,000 respectively.

The Company further reported unaudited net earnings for the six months ended June 30, 2004 of $1.47 million compared to $1.15 million for the six months ended June 30, 2003. Basic and diluted earnings per share were $0.62 and $0.59 respectively for the six months ended June 30, 2004 and $0.50 and $0.48 for the six months ended June 30, 2003. The weighted number of common shares outstanding for the six months ended June 30, 2004 for basic and diluted earnings per share calculation purposes was 2,357,000 and 2,488,000 respectively. The weighted average number of common shares outstanding for the six months ended June 30, 2003 for basic and diluted earnings per share calculation purposes was 2,297,000 and 2,367,000 respectively.

Total assets increased by $61.6 million or 20.5% to $362.3 million as of June 30, 2004 from $300.7 million at December 31, 2003. Loans receivable increased by $31.8 million or 16.8% to $220.6 million at June 30, 2004 from $188.8 million at December 31, 2003. Securities held-to-maturity increased by $20.9 million or 23.1% to $111.2 million at June 30, 2004 from $90.3 million at December 31, 2003. Retail deposits increased by $55.0 million or 21.7% to $308.7 million at June 30, 2004 from $253.7 million at December 31, 2003. Total stockholders' equity increased to $23.7 million at June 30, 2004 from $21.2 million at December 31, 2003.

Net income increased by $198,000 or 34.6% to $770,000 for the three months ended June 30, 2004 from $572,000 for the three months ended June 30, 2003. The increase in net income was due to increases in net interest income and non-interest income and a decrease in the provision for loan losses partially offset by increases in non-interest expense and income taxes. Net interest income increased by $1.1 million or 47.8% to $3.4 million for the three months ended June 30, 2004 from $2.3 million for the three months ended June 30, 2003. This increase resulted primarily from an increase in average interest earning assets of $129.1 million or 60.8% to $341.5 million for the three months ended June 30, 2004 from $212.4 million for the three months ended June 30, 2003 funded primarily through the growth in average interest bearing liabilities of $126.2 million or 70.6% to $305.0 million for the three months ended June 30, 2004 from $178.8 for the three months ended June 30, 2003, partially offset by a decrease in the net interest margin to 3.97% for the three months ended June 30, 2004 from 4.41% for the three months ended June 30, 2003.

Net income increased by $325,000 or 28.4% to $1.47 million for the six months ended June 30, 2004 from $1.15 million for the six months ended June 30, 2003. The increase in net income is due to increases in net interest income and non-interest income and a decrease in the provision for loan losses, partially offset by increases in non-interest expense and income taxes. Net interest income increased by $2.0 million or 44.4% to $6.5 million for the six months ended June 30, 2004 from $4.5 million for the six months ended June 30, 2003. This increase resulted primarily from the increased size of the Bank and an increase in average net interest earning assets of $2.0 million or 6.2% to $34.2 million for the six months ended June 30, 2004 from $32.2 million for the six months ended June 30, 2003 partially offset by a decrease in the net interest margin to 4.01% for the six months ended June 30, 2004 from 4.46% for the six months ended June 30, 2003.

Donald Mindiak President & CEO commented, "net income for the six month period ending June 30, 2004 compared favorably to the six month period ending June 30, 2003. These results are indicative of the successful execution of the Company's Business Plan in an ongoing effort to attain growth through competitive pricing of balance sheet products as well as attentive and professional customer service, which has led to an increased earning capacity in the operating statement. These benefits inure to our shareholders in the form of increased earnings per share. The successful completion of the issuance of a Pooled Trust Preferred Security on an Institutional Level allows the Bank the additional capital to continue to grow without diluting present shareholder percentage ownership."

Bayonne Community Bank presently operates three offices located in Bayonne, New Jersey.

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 Bank's Annual Report on Form 10-K and in other documents filed by the Bank 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.