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BCBP

BCB Bancorp NasdaqGM:BCBP Stock Report

Last Price

US$17.59

Market Cap

US$298.7m

7D

-2.7%

1Y

20.2%

Updated

24 Sep, 2022

Data

Company Financials +
BCBP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

BCBP Stock Overview

BCB Bancorp, Inc. operates as a bank holding company for BCB Community Bank that provides banking products and services to businesses and individuals in the United States.

BCB Bancorp, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for BCB Bancorp
Historical stock prices
Current Share PriceUS$17.59
52 Week HighUS$20.71
52 Week LowUS$14.25
Beta0.58
1 Month Change-7.37%
3 Month Change6.73%
1 Year Change20.23%
3 Year Change35.73%
5 Year Change26.09%
Change since IPO229.27%

Recent News & Updates

Aug 17

BCB Bancorp: Attractively Valued With A Rosy Earnings Outlook

Provisioning will likely remain at a normal level despite economic headwinds. A high allowance level relative to the rapidly improving asset quality will restrain provisioning. After the second quarter's outstanding performance, loan growth will likely slow down but remain at a decent level due to healthy pipelines and economic factors. The December 2022 target price suggests a high upside from the current market price. Further, BCBP is offering a decent dividend yield. The remarkable asset quality improvement over the last year will likely lift BCB Bancorp's (NASDAQ: BCBP) earnings this year. Moreover, the second quarter’s outstanding organic loan growth, healthy pipelines, and economic factors will lift the loan balance for this year, leading to earnings growth. The margin will also somewhat benefit from the rising-rate environment. Overall, I'm expecting BCB Bancorp to report earnings of $2.41 per share for 2022, up 26% year-over-year. Compared to my last report on the company, I've revised upwards my earnings estimate mostly because I have slashed my provision expense estimate and increased my loan growth estimate. For 2023, I'm expecting earnings to grow by a further 5% to $2.54 per share. The year-end target price suggests a significant upside from the current market price. Therefore, I'm upgrading BCB Bancorp to a buy rating. Rapidly Improving Asset Quality to Keep Provisioning at a Normal Level Despite Headwinds The loan portfolio’s asset quality has improved drastically over the last twelve months. The proportion of nonaccrual loans in total loans has plunged, due to which the allowance level now appears somewhat excessive. SEC Filings Mostly because of the excessively high reserve level, I believe BCB Bancorp can easily ride out the economic headwinds foreseen for the next few quarters. These headwinds include heightened interest rates, inflation, and the possibility of a recession in the country. Overall, I'm expecting provisioning to remain at a normal level in the second half of 2022 and full-year 2023. I'm expecting the net provision expense to make up 0.18% of total loans (annualized) in the second half of 2022 and 0.15% of total loans in 2023. In comparison, the net provision averaged 0.15% from 2017 to 2019 and 0.21% from 2017 to 2021. Healthy Pipelines, Regional Economy to Support Loan Growth BCB Bancorp reported exceptional loan growth of 9.4% in the second quarter of 2022, or 37.5% annualized. This growth was organic and mostly driven by the commercial real estate and multifamily segment. Loan growth will most probably decelerate in the third quarter because the second quarter's unusual performance is unsustainable. However, loan growth will most probably remain at a decent level partly because of the pipelines’ health. Management called the loan pipeline “substantial” in the earnings release. Further, regional economic factors will support loan growth. BCB Bancorp operates in New Jersey and New York, whose economies have been slowly but surely recovering. The following chart shows the coincident index for the states. Although the trend is not as steep as before, it is still positive. Philly Fed New York Coincident Index data by YCharts Similarly, the job market's recovery is slower than the rest of the country but still commendable. New York Unemployment Rate data by YCharts Considering these factors, I'm expecting the loan portfolio to increase by 2% in the second half of 2022, leading to full-year loan growth of 16.0%. Compared to my last report on BCB Bancorp, I haven't changed my loan growth estimate for the second half of the year. However, I've significantly revised upward the loan growth estimate for the full year because the second quarter’s loan growth beat my expectations. For 2023, I'm expecting growth to continue at the same level as the second half of 2022. Meanwhile, I'm expecting the growth of other balance sheet items to match loan growth. The following table shows my balance sheet estimates. FY18 FY19 FY20 FY21 FY22E FY23E Financial Position Net Loans 2,278 2,178 2,228 2,305 2,673 2,782 Growth of Net Loans 38.6% (4.4)% 2.3% 3.5% 16.0% 4.1% Other Earning Assets 305 621 360 514 309 321 Deposits 2,181 2,362 2,318 2,561 2,708 2,818 Borrowings and Sub-Debt 282 296 243 122 140 145 Common equity 181 214 223 245 272 305 Book Value Per Share ($) 11.5 13.1 13.1 14.2 15.6 17.5 Tangible BVPS ($) 11.2 12.7 12.7 13.9 15.3 17.2 Source: SEC Filings, Earnings Releases, Author's Estimates(In USD million unless otherwise specified) Margin is not Very Sensitive to Rate Hikes I don't expect the margin to benefit much from the rising-rate environment. Firstly, around 57% of the deposit book is made up of deposits that re-price soon after every rate hike, namely interest-bearing demand, money market, and savings deposits. Therefore, the deposit beta is likely to remain somewhat high. Moreover, BCB Bancorp’s net interest margin has actually declined during the last upward rate cycle from the fourth quarter of 2015 to the fourth quarter of 2018. SEC Filings Considering these factors, I'm expecting the margin to grow by 23 basis points in the second half of 2022 before stabilizing in 2023. Compared to my last report on the company, I've revised upward the margin estimate for 2022 because the interest rates have already risen faster and higher than I previously expected. Expecting Earnings to Surge by 26% The significant asset quality improvement, remarkable loan growth, and slight margin expansion will drive earnings this year. Further, the noninterest income will likely turn back to black this quarter. BCB Bancorp reported large unrealized losses on equity investments in the first half of the year, which is unlikely to be repeated in the second half. Overall, I am expecting BCB Bancorp to report earnings of $2.41 per share for 2022, up 26% year-over-year. For 2023, I'm expecting earnings to grow by 5% to $2.54 per share. The following table shows my income statement estimates. FY18 FY19 FY20 FY21 FY22E FY23E Income Statement Net interest income 78 83 80 97 112 123 Provision for loan losses 5 2 9 4 0 4 Non-interest income 8 5 12 9 2 5 Non-interest expense 56 56 54 54 53 57 Net income - Common Sh. 16 20 20 33 42 44 EPS - Diluted ($) 1.01 1.20 1.14 1.92 2.41 2.54 Source: SEC Filings, Earnings Releases, Author's Estimates(In USD million unless otherwise specified) In my last report on BCB Bancorp, I estimated earnings of $2.22 per share for 2022. I've now revised upwards my earnings estimate mostly because I've increased both my loan growth and margin estimates. Moreover, I've reduced my provisioning estimate to almost zero following the first half’s outstanding performance.

Jul 24
BCB Bancorp (NASDAQ:BCBP) Will Pay A Dividend Of $0.16

BCB Bancorp (NASDAQ:BCBP) Will Pay A Dividend Of $0.16

The board of BCB Bancorp, Inc. ( NASDAQ:BCBP ) has announced that it will pay a dividend on the 15th of August, with...

Jul 23
Analysts Are Updating Their BCB Bancorp, Inc. (NASDAQ:BCBP) Estimates After Its Second-Quarter Results

Analysts Are Updating Their BCB Bancorp, Inc. (NASDAQ:BCBP) Estimates After Its Second-Quarter Results

It's been a good week for BCB Bancorp, Inc. ( NASDAQ:BCBP ) shareholders, because the company has just released its...

Shareholder Returns

BCBPUS BanksUS Market
7D-2.7%-5.8%-5.2%
1Y20.2%-21.7%-23.1%

Return vs Industry: BCBP exceeded the US Banks industry which returned -21.7% over the past year.

Return vs Market: BCBP exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is BCBP's price volatile compared to industry and market?
BCBP volatility
BCBP Average Weekly Movement3.8%
Banks Industry Average Movement3.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: BCBP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BCBP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2000302Tom Coughlinhttps://www.bcb.bank

BCB Bancorp, Inc. operates as a bank holding company for BCB Community Bank that provides banking products and services to businesses and individuals in the United States. The company offers deposit products, including savings and club accounts, interest and non-interest-bearing demand accounts, money market accounts, certificates of deposit, and individual retirement accounts. It also provides loans, such as commercial and multi-family real estate, one-to-four family mortgage, commercial business, small business administration, construction, home equity and lines of credit, and consumer loans, as well as residential loans secured by one-to-four family dwellings, condominiums, and cooperative units.

BCB Bancorp, Inc. Fundamentals Summary

How do BCB Bancorp's earnings and revenue compare to its market cap?
BCBP fundamental statistics
Market CapUS$298.71m
Earnings (TTM)US$38.18m
Revenue (TTM)US$108.47m

7.8x

P/E Ratio

1.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BCBP income statement (TTM)
RevenueUS$108.47m
Cost of RevenueUS$0
Gross ProfitUS$108.47m
Other ExpensesUS$70.29m
EarningsUS$38.18m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.25
Gross Margin100.00%
Net Profit Margin35.20%
Debt/Equity Ratio45.8%

How did BCBP perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

28%

Payout Ratio