BCB Bancorp, Inc. Form 8-K Summary
Business Context and Reporting Period
BCB Bancorp, Inc. filed this Current Report on Form 8-K on July 27, 2010, to announce a non-reliance on previously issued financial statements. The Company is restating its Quarterly Reports on Form 10-Q for the quarters ended June 30, 2009, and September 30, 2009. The restatement is driven by a correction in the accounting treatment of costs related to the merger with Pamrapo Bancorp, Inc. (completed July 6, 2010) and the proper reflection of Federal Deposit Insurance Corporation (FDIC) assessment expenses for 2009.
Key Financial Metrics and Restatement Impact
The filing details the quantitative impact of the restatement on the Company's consolidated financial statements. The primary adjustments involve the expensing of merger-related costs (previously capitalized) and increased regulatory assessments, resulting in lower net income and equity.
| Period | Net Income (As Reported) | Net Income (As Corrected) | EPS Basic (As Reported) | EPS Basic (As Corrected) |
|---|---|---|---|---|
| Three Months Ended June 30, 2009 | $742,000 | $632,000 | $0.16 | $0.14 |
| Six Months Ended June 30, 2009 | $2,105,000 | $1,995,000 | $0.45 | $0.43 |
| Three Months Ended Sept 30, 2009 | $1,211,000 | $984,000 | $0.26 | $0.21 |
| Six Months Ended Sept 30, 2009 | $3,316,000 | $2,979,000 | $0.71 | $0.64 |
Balance Sheet Adjustments: Total assets and stockholders' equity were reduced in the corrected figures due to the removal of capitalized merger costs from "Other assets" and the reduction of retained earnings.
Material Changes Versus Prior Period
The material changes stem from two specific accounting corrections:
- Merger Costs: Under new guidance (ASC Topic 805), costs associated with the business combination must be recognized in the period incurred rather than capitalized. The Company initially capitalized these costs in 2009. The restatement reclassifies these costs to non-interest expense.
- FDIC Assessments: The Company is restating financials to properly reflect FDIC assessment expenses attributable to the 2009 fiscal year, which were previously understated.
Guidance, Outlook, and Risks
The Company intends to file amended Quarterly Reports (Form 10-Q/A) for the quarters ended June 30, 2009, and September 30, 2009, as soon as practicable. Management and the Audit Committee have discussed these matters with the independent registered public accounting firm, ParenteBeard LLC. The filing explicitly states that the Annual Report on Form 10-K for the fiscal year ended December 31, 2009, does not require revision as it already reflects the correct accounting guidance.
Investor Verification Checklist
- Verify the upcoming filing of Form 10-Q/A for the quarters ended June 30, 2009, and September 30, 2009.
- Confirm the total amount of merger-related expenses reclassified from assets to operations ($75,000 for Q2 2009; $295,000 for YTD Q3 2009).
- Review the updated FDIC assessment expense figures in the amended filings.
- Ensure that the 2009 Form 10-K remains unchanged as per management's statement.