BCB Bancorp's (BCBP) third quarter results were mostly in line with expectations. However, the significant 2.0% quarter-over-quarter decline in loans gave a negative surprise. Going forward, loan growth is expected to slightly recover, but it will most likely not be sufficient to counter normal growth in non-interest expense. Consequently, I'm expecting earnings to decline in 2020 compared to 2019. Despite the earnings decline, I'm expecting next year's dividends to be maintained at current level.
Loan Growth Likely to Recover
As mentioned in the 3QFY19 earnings release, loans decreased in the third quarter compared to