About BCB Bancorp

BCB Bancorp, Inc. operates as a bank holding company for BCB Community Bank that provides commercial banking products and services. The company operates as a community-oriented financial institution. Its business is to offer FDIC-insured deposit products and to invest funds held in deposit accounts at the bank, together with funds generated from operations, in loans and investment securities. The company offers its customers: Loans, including commercial and multi-family real estate loans, one-to-four family mortgage loans, commercial business loans, construction loans, home equity loans, and consumer loans. In recent years the primary growth in the company’s loan portfolio has been in loans secured by commercial real estate and multi-family properties; FDIC-insured deposit products, including savings and club accounts, interest and non-interest-bearing demand accounts, money market accounts, certificates of deposit, and individual retirement accounts; and Retail and commercial banking services including wire transfers, money orders, safe deposit boxes, night depository, debit cards, online banking, mobile banking, fraud detection (positive pay), and automated teller services. Business Strategy The company’s business strategy is to operate as a well-capitalized, profitable, and independent community-oriented financial institution dedicated to providing the highest quality customer service. The key elements of the company’s strategy include maintaining a community focus; concentrating on real estate-based lending; and providing attentive and personalized service. Market Area The company is located in Bayonne, Jersey City and Hoboken in Hudson County, Edison, Monroe Township, Plainsboro and Woodbridge in Middlesex County, Lyndhurst, River Edge, and Rutherford in Bergen County and Fairfield, Maplewood, Newark, and South Orange in Essex County, Holmdel in Monmouth County, Parsippany in Morris County, and Union in Union County, New Jersey. The bank also operates branches in Staten Island, New York and in Hicksville, New York. The bank’s locations are easily accessible and provide convenient services to businesses and individuals throughout the company’s market area. These areas are all considered ‘bedroom’ or ‘commuter’ communities to Manhattan. The company’s market area is well-served by a network of arterial roadways, including Route 440 and the New Jersey Turnpike. The company’s market area has a high level of commercial business activity. Businesses are concentrated in the service sector and retail trade areas. Major employers in the company’s market area include certain medical centers, municipalities, and local boards of education. Lending Activities Commercial and Multi-family Real Estate Loans: Commercial real estate loans are secured by improved property, such as office buildings, mixed use buildings, retail stores, shopping centers, warehouses, and other non-residential buildings. Loans secured by multi-family properties contain five or more residential units. The bank offers fully amortizing loans on both property types at loan amounts up to 75 percent of the appraised value of the property. Both commercial and multi-family real estate loans are generally made at rates that adjust above the Federal Home Loan Bank of New York interest rate, with terms of up to 30 years. In addition, the bank offers balloon loans with fixed interest rates which generally mature in three to five years with amortization periods up to 30 years. Loans secured by commercial and multi-family real estate are generally larger and involve a greater degree of risk than one-to-four family residential mortgage loans. The borrower’s creditworthiness, as well as the property’s continued viability and cash flow potential are of primary concern in commercial and multi-family real estate lending. Commercial loans secured by owner occupied properties involve different risks when measured against one-to-four family residential and non-owner-occupied commercial mortgage loans. Cash flow on owner occupied properties is often dependent on the success of the business operation contained within the subject property. The bank intends to continue emphasizing the origination of loans secured by commercial real estate and multi-family properties. Construction Loans: The bank offers loans to finance the construction of various types of commercial and residential properties. Generally, construction loans are offered with terms of up to thirty months, with adjustable interest rates tied to a margin above Prime Rate. Customarily, the bank originates loans on projects which have all necessary permits in place to the bank’s satisfaction. Construction loan funds are disbursed as the project progresses. The bank also offers construction loans that convert to a permanent mortgage on the property upon completion of the project, provided compliance with conditions set forth at loan approval. Terms of such permanent mortgage loans are similar to other mortgage loans secured by similar properties, with the interest rate established at the time of conversion. Commercial Business Loans: The bank offers a variety of commercial business loans in the form of either lines of credit or fully amortizing term loans. Lines of credit (LOCs) are typically utilized for working capital purposes. LOCs are either revolving or non-revolving and provide loan terms between one and three years. LOC repayment is generally interest only with adjustable interest rates tied to a margin above Prime Rate. Term loans are typically utilized for the purchase of a business or equipment for a business, and carry fully amortizing terms between five and twenty-five years. Term loan interest rates are adjustable and tied to a margin above the Federal Home Loan Bank of New York rate. Commercial business loans are underwritten based upon the borrower’s ability to service such debt from income. These loans are generally made to small and mid-sized companies located within the bank’s primary and secondary lending areas. Depending on the circumstances, a commercial business loan may be secured by equipment, accounts receivable, inventory, chattel or other assets. SBA Lending: The bank offers qualifying business loans guaranteed by the U.S. Small Business Administration (SBA). Amongst other characteristics, SBA borrowers are often sound businesses, but may have a smaller amount of equity funds to invest in their businesses, may be at an emergent stage of business development, or have other characteristics that may make them ineligible for conventional bank loans. There is a well-developed market for the sale of the guaranteed portion of SBA 7(a) loans. As of December 31, 2022, the bank’s largest SBA loan was a construction loan secured by a gym located in Marlboro, NJ. Residential Lending: Residential loans are secured by one-to-four family dwellings, condominiums and cooperative units. Residential mortgage loans are secured by properties located in the company’s primary lending areas of Bergen, Essex, Middlesex, Hudson, Monmouth and Richmond counties; adjoining counties are considered as its secondary lending areas. Generally, the company originates residential mortgage loans up to 80 percent loan-to-value at a maximum loan amount of $2.5 million and 75 percent loan-to-value at a maximum loan amount of $5.0 million for primary residences. The company will originate loans with loan-to-value ratios up to 90 percent, provided the borrower obtains private mortgage insurance approval. The company originates both fixed and adjustable rate residential loans with a term of up to 30 years. The company offers 15, 20, and 30 year fixed, 15/30-year balloon and 3/1, 5/1, 7/1 and 10/1 adjustable rate loans with payments being calculated to include principal, interest, taxes and insurance. The 3/1 and 5/1 adjustable rate loans are qualified at 2.0 percent above the start rate; all other loans are qualified at the start rate. The company has a number of correspondent relationships with third party lenders in which it delivers closed first mortgage loans. Home Equity Loans and Home Equity Lines of Credit: The bank offers home equity loans and lines of credit that are secured by either the borrower’s primary residence, a secondary residence or an investment property. The company’s home equity loans can be structured as loans that are disbursed in full at closing or as lines of credit. Home equity lines of credit are offered with terms up to 30 years. Virtually all of the company’s home equity loans are originated with fixed rates of interest and home equity lines of credit are originated with adjustable interest rates tied to the prime rate. Home equity loans and lines of credit are underwritten utilizing the same criteria used to underwrite one-to-four family residential loans. Home equity lines of credit may be underwritten with a loan-to-value ratio of up to 80 percent in a first lien position. Consumer Loans: The bank makes secured passbook, automobile and, on occasion, unsecured consumer loans. Consumer loans generally have terms between one and five years. They generally are made on a fixed rate basis, fully-amortizing. Investment Portfolio To supplement its lending activities, the company has invested in residential mortgage-backed securities. Deposits Consumer and commercial deposits are attracted principally from within the company’s primary market area through the offering of a selection of deposit instruments, including demand, NOW, savings and club accounts, money market accounts, and term certificate accounts. Supervision and Regulation As a bank holding company registered under the Bank Holding Company Act of 1956, as amended, the company is subject to the regulation and supervision applicable to bank holding companies by the Federal Reserve Board. The company is also subject to the provisions of the New Jersey Banking Act of 1948 (the New Jersey Banking Act) and the regulations of the Commissioner of the New Jersey Department of Banking and Insurance (Commissioner). The company is required to file reports with the Federal Reserve Board and the Commissioner regarding its business operations and those of its subsidiaries. The company is required to obtain the prior approval of the Federal Reserve Board to acquire all, or substantially all, of the assets of any bank or bank holding company. Under the New Jersey Banking Act, a company owning or controlling a bank is regulated as a bank holding company and must file certain reports with the Commissioner and is subject to examination by the Commissioner. As a New Jersey-chartered commercial bank, the bank is subject to the regulation, supervision, and examination of the Commissioner. As a state-chartered bank, the bank is subject to the regulation, supervision, and examination of the FDIC as its primary federal regulator. The company’s deposits are insured by the FDIC in the maximum amount permitted of $250,000 per depositor. The company’s common stock is registered with the SEC under the Securities Exchange Act of 1934, as amended (Exchange Act). The company is subject to the information, proxy solicitation, insider trading restrictions, and other requirements under the Securities Exchange Act of 1934. The bank’s deposit accounts are insured by the Federal Deposit Insurance Corporation (the FDIC) and the bank is a member of the Federal Home Loan Bank (FHLB) System. History BCB Bancorp, Inc. was founded in 2000. The company, a New Jersey corporation, was incorporated in 2003.