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

Total assets increased by $39.0 million or 6.7% to $617.6 million at June 30, 2009 from $578.6 million at December 31, 2008. Total cash and cash equivalents increased by $64.5 million or 948.5% to $71.3 million at June 30, 2009 from $6.8 million at December 31, 2008. The increase in cash and cash equivalents reflects management's decision to increase the Bank's liquidity position while it determines where the best investment opportunities exist during a period of significant economic disruption. Securities held-to-maturity decreased by $25.9 million or 18.3% to $115.4 million at June 30, 2009 from $141.3 million at December 31, 2008. Loans receivable decreased by $1.5 million or 0.4% to $405.3 million at June 30, 2009 from $406.8 million at December 31, 2008. Deposit liabilities increased by $40.1 million or 9.8% to $450.6 million at June 30, 2009 from $410.5 million at December 31, 2008. Stockholders' equity increased by $1.1 million or 2.2% to $50.8 million at June 30, 2009 from $49.7 million at December 31, 2008. The increase in stockholders' equity is primarily attributable to net income of the Company for the six months ended June 30, 2009 of $2.1 million, a $63,000 increase resulting from the exercise of stock options totaling 11,933 shares and a $12,000 increase in the market value of our available-for-sale securities portfolio, net of tax, partially offset by the payment of two quarterly cash dividends totaling $1.1 million representing two $0.12/share payments during the six months ended June 30, 2009, and $25,000 paid to repurchase 2,509 shares of the Company's common stock.

Net income decreased by $534,000 or 41.8% to $742,000 for the three months ended June 30, 2009 from $1.28 million for the three months ended June 30, 2008. The decrease in net income was due to a decrease in net interest income and an increase in total non-interest expense, partially offset by an increase in total non-interest income and a decrease in income taxes. Net interest income decreased by $534,000 or 11.0% to $4.34 million for the three months ended June 30, 2009 from $4.87 million for the three months ended June 30, 2008. This decrease in net interest income resulted primarily from a decrease in the average yield on interest earning assets to 5.50% for the three months ended June 30, 2009 from 6.41% for the three months ended June 30, 2008, partially offset by an increase of $36.9 million or 6.6% in the average balance of interest earning assets to $599.5 million for the three months ended June 30, 2009 from $562.6 million for the three months ended June 30, 2008. The average balance of interest bearing liabilities increased by $37.3 million or 7.6% to $525.5 million for the three months ended June 30, 2009 from $488.2 million for the three months ended June 30, 2008 and the average cost of interest bearing liabilities decreased by forty-two basis points to 2.97% for the three months ended June 30, 2009 from 3.39% for the three months ended June 30, 2008. As a consequence of the aforementioned, our net interest margin decreased to 2.89% for the three months ended June 30, 2009 from 3.46% for the three months ended June 30, 2008.

Net income decreased by $475,000 or 18.4% to $2.1 million for the six months ended June 30, 2009 from $2.6 million for the six months ended June 30, 2008. The decrease in net income was due to a decrease in net interest income, an increase in the provision for loan losses and an increase in total non-interest expense, partially offset by an increase in non-interest income and a decrease in income taxes. Net interest income decreased by $290,000 or 3.0% to $9.26 million for the six months ended June 30, 2009 from $9.55 million for the six months ended June 30, 2008. This decrease in net interest income resulted primarily from a decrease in the average yield on interest earning assets to 5.84% for the six months ended June 30, 2009 from 6.50% for the six months ended June 30, 2008, partially offset by an increase of $29.3 million or 5.3% in the average balance of interest earning assets to $585.6 million for the six months ended June 30, 2009 from $556.3 million for the six months ended June 30, 2008. The average balance of interest bearing liabilities increased by $30.9 million or 6.4% to $513.6 million for the six months ended June 30, 2009 from $482.7 million for the six months ended June 30, 2008, while the average cost of interest bearing liabilities decreased to 3.06% for the six months ended June 30, 2009 from 3.53% for the six months ended June 30, 2008. As a consequence of the decrease in the average yield earned on our interest earning assets, our net interest margin decreased to 3.16% for the six months ended June 30, 2009 from 3.43% for the six months ended June 30, 2008.

Donald Mindiak, President & CEO commented, "Net income for the three and six month periods ending June 30, 2009 were adversely impacted by the FDIC's one-time recapitalization assessment, which impacted all federally insured financial institutions in the United States. This assessment, which totaled $300,000, was required to be accrued for during the second quarter and will be paid prior to the close of the third quarter of 2009. In the absence of this one-time recapitalization assessment, net income would have been enhanced by $180,000 and earnings per share, both basic and diluted, would have increased by an additional $0.04 per common share."

"As investment security balances have decreased by virtue of the volume of call options being exercised on our callable agency security portfolio, the Company has determined that current market conditions warrant maintaining a higher than customary liquidity position in the absence of investment opportunities that will provide a meaningfully higher return to the Bank. In so doing, while interest income on securities has decreased accordingly, we will be ready for the opportunities for reinvestment that will inevitably present themselves. Prudent management of this challenge, given the opportunity that is presented to us with the pending merger with Pamrapo Bancorp, which was announced at the end of the second quarter, will play a critical role in positioning the Company to take advantage of the opportunities that will exist as the country comes out of the current recession."

"Balance sheet growth continues to occur at a measured pace, commensurate with our capital ratios and, mindful of the weakness in the local and national economy, while asset quality remains a source of strength for the Company, we continue to carefully monitor our loan portfolio and will prudently make loan loss allowance provisions to insulate the Company from any loan facility issues."

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

Questions regarding the content of this release should be directed to either Donald Mindiak, President & CEO, or Thomas Coughlin, COO & Principal Accounting Officer at 201-823-0700.

Forward-looking Statements and Associated Risk Factors

This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our 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. We intend 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 are including this statement for purposes of said safe harbor provisions.

Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "seek," "strive," "try," or future or conditional verbs such as "could," "may," "should," "will," "would," or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

There are a number of factors, many of which are beyond our control, that could cause actual conditions, events, or results to differ significantly from those described in our forward-looking statements. These factors include, but are not limited to: general economic conditions and trends, either nationally or in some or all of the areas in which we and our customers conduct our respective businesses; conditions in the securities markets or the banking industry; changes in interest rates, which may affect our net income, prepayment penalties and other future cash flows, or the market value of our assets; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services in the markets we serve; changes in the financial or operating performance of our customers' businesses; changes in real estate values, which could impact the quality of the assets securing the loans in our portfolio; changes in the quality or composition of our loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; changes in our customer base; potential exposure to unknown or contingent liabilities of companies targeted for acquisition; our ability to retain key members of management; our timely development of new lines of business and competitive products or services in a changing environment, and the acceptance of such products or services by our customers; any interruption or breach of security resulting in failures or disruptions in customer account management, general ledger, deposit, loan or other systems; any interruption in customer service due to circumstances beyond our control; the outcome of pending or threatened litigation, or of other matters before regulatory agencies, or of matters resulting from regulatory exams, whether currently existing or commencing in the future; environmental conditions that exist or may exist on properties owned by, leased by, or mortgaged to the Company; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in legislation, regulation, and policies, including, but not limited to, those pertaining to banking, securities, tax, environmental protection, and insurance, and the ability to comply with such changes in a timely manner; changes in accounting principles, policies, practices, or guidelines; operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; the ability to keep pace with, and implement on a timely basis, technological changes; changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; war or terrorist activities; and other economic, competitive, governmental, regulatory, and geopolitical factors affecting our operations, pricing and services.

It also should be noted that the Company occasionally evaluates opportunities to expand through acquisition and may conduct due diligence activities in connection with such opportunities. As a result, acquisition discussions and, in some cases, negotiations, may take place in the future, and acquisitions involving cash, debt, or equity securities may occur. Furthermore, the timing and occurrence or non-occurrence of these events may be subject to circumstances beyond the Company's control.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. 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.

BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of
Financial Condition at
June 30, 2009 and December 31, 2008
(Unaudited)
(in
thousands except for share data )
                                                                                At                   At
                                                                                June 30, 2009        December 31, 2008
ASSETS
Cash and amounts due from depository institutions                               $        3,741       $     3,495
Interest-earning deposits                                                                67,530            3,266
Total cash and cash equivalents                                                          71,271            6,761
Securities held for sale                                                                 908               888
Securities held to maturity, fair value $117,798 and $143,245
respectively                                                                             115,419           141,280
Loans held for sale                                                                      3,379             1,422
Loans receivable, net of allowance for loan losses of $5,938 and
$5,304 respectively                                                                      405,268           406,826
Premises and equipment                                                                   5,479             5,627
Federal Home Loan Bank of New York stock                                                 5,715             5,736
Interest receivable                                                                      3,004             3,884
Other real estate owned                                                                  1,335             1,435
Deferred income taxes                                                                    3,421             3,113
Other assets                                                                             2,421             1,652
Total assets                                                                    $        617,620     $     578,624
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits                                                   $        32,314      $     30,561
Interest bearing deposits                                                                418,261           379,942
Total deposits                                                                           450,575           410,503
Short-term Borrowings                                                                    -                 2,000
Long-term Debt                                                                           114,124           114,124
Other Liabilities                                                                        2,168             2,282
Total Liabilities                                                                        566,867           528,909
STOCKHOLDERS' EQUITY
Common stock, stated value $0.064; 10,000,000 shares authorized;
5,195,664 and 5,183,731 shares respectively, issued                                      332               331
Additional paid-in capital                                                               46,926            46,864
Treasury stock, at cost, 536,189 and 533,680 shares,
respectively                                                                             (8,705   )        (8,680  )
Retained Earnings                                                                        12,313            11,325
Accumulated other comprehensive loss                                                     (113     )        (125    )
Total stockholders' equity                                                               50,753            49,715
Total liabilities and stockholders' equity                                      $        617,620     $     578,624

BCB BANCORP INC. AND SUBSIDIARIES
Consolidated Statements of
Income
For the three and six months ended
June 30, 2009
and 2008
(Unaudited)
( in thousands except for per share
data)
                                                                 Three Months EndedSix Months Ended
                                                                 June 30,          June 30,
                                                                 2009     2008     2009      2008
Interest income:
Loans                                                            $ 6,827  $ 6,623  $ 13,716  $ 13,268
Securities                                                       1,392    2,281    3,372     4,620
Other interest-earning assets                                    19       108      23        181
Total interest income                                            8,238    9,012    17,111    18,069
Interest expense:
Deposits:
Demand                                                           205      241      403       542
Savings and club                                                 279      339      576       699
Certificates of deposit                                          2,176    2,300    4,397     4,741
                                                                 2,660    2,880    5,376     5,982
Borrowed money                                                   1,242    1,262    2,478     2,540
Total interest expense                                           3,902    4,142    7,854     8,522
Net interest income                                              4,336    4,870    9,257     9,547
Provision for loan losses                                        300      300      650       550
Net interest income after provision for loan losses              4,036    4,570    8,607     8,997
Non-interest income:
Fees and service charges                                         144      147      274       305
Gain on sales of loans originated for sale                       86       20       128       100
Gain on sale of real estate owned                                5        -        5         -
Other                                                            7        6        16        16
Total non-interest income                                        242      173      423       421
Non-interest expense:
Salaries and employee benefits                                   1,306    1,378    2,629     2,753
Occupancy expense of premises                                    282      262      546       525
Equipment                                                        526      504      1,041     1,002
Advertising                                                      72       71       119       122
Other                                                            844      524      1,281     964
Total non-interest expense                                       3,030    2,739    5,616     5,366
Income before income tax provision                               1,248    2,004    3,414     4,052
Income tax provision                                             506      728      1,309     1,472
Net Income                                                       $ 742    $ 1,276  $ 2,105   $ 2,580
Net Income per common share-basic and diluted
         basic                                                   $ 0.16   $ 0.28   $ 0.45    $ 0.56
         diluted                                                 $ 0.16   $ 0.27   $ 0.45    $ 0.55
Weighted average number of common shares outstanding-
         basic                                                   4,653    4,604    4,651     4,610
         diluted                                                 4,676    4,691    4,677     4,705

SOURCE: BCB Bancorp, Inc.

BCB Bancorp, Inc. 
Donald Mindiak, President & CEO 
Thomas Coughlin, COO & Principal Accounting Officer 
201-823-0700