[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides a high-level overview of BCB Bancorp, Inc.'s Q2 2025 financial performance, management's perspective, and key financial highlights. [Q2 2025 Performance Highlights](index=1&type=section&id=1.1.%20Q2%202025%20Performance%20Highlights) BCB Bancorp, Inc. reported a net income of **$3.6 million** for Q2 2025, a significant improvement from a net loss in Q1 2025 and an increase from Q2 2024, with diluted EPS at **$0.18**, and a quarterly cash dividend of **$0.16** per share declared Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Income (million) | $3.6 | ($8.3) | $2.8 | | Diluted EPS | $0.18 | ($0.51) | $0.14 | | Quarterly Cash Dividend Per Share | $0.16 | - | - | Key Financial Ratios and Metrics (Q2 2025 vs. Prior Periods) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | | Total Deposits (billion) | $2.662 | $2.687 | - | | Net Interest Margin | **2.80%** | 2.59% | 2.60% | | Total Yield on Interest-Earning Assets | **5.24%** | 5.20% | 5.43% | | Total Cost of Interest-Bearing Liabilities | **3.16%** | 3.33% | 3.56% | | Efficiency Ratio | **60.6%** | 61.6% | 68.6% | | Annualized Return on Average Assets | **0.42%** | (0.95%) | 0.30% | | Annualized Return on Average Equity | **4.6%** | (10.4%) | 3.5% | | Provision for Credit Losses (million) | **$4.9** | $20.8 | $2.4 | | ACL as % of Non-Accrual Loans | **49.8%** | 51.6% | 108.6% | | Total Non-Accrual Loans (million) | **$101.8** | $99.8 | $32.4 | | Total Loans Receivable, Net (billion) | **$2.860** | - | $3.162 | [Management Commentary](index=1&type=section&id=1.2.%20Management%20Commentary) The CEO expressed satisfaction with the positive trend in core profitability, driven by net interest margin expansion and balance sheet optimization, while actively addressing asset quality challenges through disciplined loan loss provisioning, acknowledging temporary impacts on short-term profitability but maintaining a positive medium to long-term outlook - Core profitability is trending positively, primarily due to meaningful **net interest margin expansion** driven by balance sheet optimization[4](index=4&type=chunk) - The company is aggressively addressing asset quality challenges and maintaining discipline in booking loan loss provisioning expenses to support reserves[5](index=5&type=chunk) - While credit actions have depressed short-term profitability, the medium to long-term outlook for the Bank remains positive[5](index=5&type=chunk) [Financial Performance - Quarterly Review](index=2&type=section&id=Financial%20Performance%20-%20Quarterly%20Review) This section details the company's financial results for the second quarter of 2025, analyzing key income, expense, and profitability metrics [Net Income and Earnings Per Share](index=2&type=section&id=2.1.%20Net%20Income%20and%20Earnings%20Per%20Share) Net income for Q2 2025 increased to **$3.6 million** from **$2.8 million** in Q2 2024, primarily due to the absence of a **$4.9 million** loss on sale of loans recorded in Q2 2024, despite higher loan loss provisioning and non-interest expenses in Q2 2025 Net Income and EPS (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (thousand) | Q2 2024 (thousand) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Net Income | $3,564 | $2,817 | 26.5% | | Net Income Available to Common Stockholders | $3,082 | $2,369 | 30.1% | | Diluted EPS | $0.18 | $0.14 | 28.8% | - The increase in net income was primarily driven by a **$4.9 million loss on sale of loans** that depressed earnings in Q2 2024, which was not present in Q2 2025[14](index=14&type=chunk) [Net Interest Income and Margin](index=2&type=section&id=2.2.%20Net%20Interest%20Income%20and%20Margin) Net interest income slightly decreased by **2.3%** in Q2 2025 compared to Q2 2024, as a larger decrease in interest income outpaced the decrease in interest expense; however, the net interest margin expanded to **2.80%** due to a more significant reduction in the cost of interest-bearing liabilities Net Interest Income and Margin (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (thousand) | Q2 2024 (thousand) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Total Interest and Dividend Income | $43,181 | $49,445 | -12.7% | | Total Interest Expense | $20,079 | $25,806 | -22.2% | | Net Interest Income | $23,102 | $23,639 | -2.3% | | Net Interest Margin | 2.80% | 2.60% | +20 bps | | Average Yield on Interest-Earning Assets | 5.24% | 5.43% | -19 bps | | Average Cost of Interest-Bearing Liabilities | 3.16% | 3.56% | -40 bps | - The increase in net interest margin was primarily driven by a **decrease in the cost of interest-bearing liabilities**, partially offset by a decrease in the yield on interest-earning assets[17](index=17&type=chunk) [Non-Interest Income](index=3&type=section&id=2.3.%20Non-Interest%20Income) Non-interest income significantly increased to **$2.1 million** in Q2 2025 from a loss of **$3.2 million** in Q2 2024, mainly due to the absence of a **$4.9 million** loss on the sale of loans in the current quarter, coupled with increases in fee income, BOLI income, and gains on equity securities Non-Interest Income (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (thousand) | Q2 2024 (thousand) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Total Non-Interest Income (Loss) | $2,076 | ($3,234) | -164.2% | | Loss on Sales of Loans | — | ($4,851) | -100.0% | | Fees and Service Charges | $1,305 | $1,119 | 16.6% | | BOLI Income | $786 | $671 | 17.1% | - The substantial increase in non-interest income was primarily due to the absence of a **$4.9 million loss on the sale of loans** in Q2 2024[19](index=19&type=chunk) [Non-Interest Expense](index=3&type=section&id=2.4.%20Non-Interest%20Expense) Non-interest expense increased by **9.2%** to **$15.3 million** in Q2 2025 compared to Q2 2024, primarily driven by higher salaries and employee benefits, and increased data processing and communication costs Non-Interest Expense (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (thousand) | Q2 2024 (thousand) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Total Non-Interest Expense | $15,268 | $13,987 | 9.2% | | Salaries and Employee Benefits | $7,713 | $6,992 | 10.3% | | Data Processing and Communications | $2,046 | $1,672 | 22.4% | [Income Tax Provision](index=3&type=section&id=2.5.%20Income%20Tax%20Provision) The income tax provision increased to **$1.5 million** in Q2 2025 from **$1.2 million** in Q2 2024, while the consolidated effective tax rate slightly decreased to **29.0%** from **29.2%** Income Tax Provision (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (thousand) | Q2 2024 (thousand) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Income Tax Provision | $1,455 | $1,163 | 25.1% | | Effective Tax Rate | 29.0% | 29.2% | -0.2 pp | [Financial Performance - Year-to-Date Review](index=3&type=section&id=Financial%20Performance%20-%20Year-to-Date%20Review) This section provides a comprehensive analysis of the company's financial performance for the first six months of 2025, comparing it to the prior year [Net Income (Loss)](index=3&type=section&id=3.1.%20Net%20Income%20%28Loss%29) For the first six months of 2025, the company reported a net loss of **$4.8 million**, a significant decrease from a net income of **$8.7 million** in the same period of 2024, primarily driven by a substantial increase in loan loss provisioning, lower net interest income, and higher non-interest expenses, partially offset by a lower income tax provision and higher non-interest income Net Income (Loss) (YTD 2025 vs. YTD 2024) | Metric | YTD 2025 (thousand) | YTD 2024 (thousand) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Net Income (Loss) | ($4,760) | $8,683 | -154.8% | | Net Income (Loss) Available to Common Stockholders | ($5,724) | $7,801 | -173.4% | | Diluted EPS | ($0.33) | $0.46 | -172.6% | - The decrease in net income was primarily driven by **$21.2 million higher provisioning for loan loss expense**, **$1.7 million lower net interest income**, and **$1.1 million higher non-interest expense**[22](index=22&type=chunk) [Net Interest Income and Margin](index=3&type=section&id=3.2.%20Net%20Interest%20Income%20and%20Margin) Net interest income decreased by **3.6%** for the first six months of 2025 compared to the same period in 2024; despite this, the net interest margin improved to **2.70%** due to a greater decrease in the cost of interest-bearing liabilities than the decrease in the rate earned on earning assets Net Interest Income and Margin (YTD 2025 vs. YTD 2024) | Metric | YTD 2025 (thousand) | YTD 2024 (thousand) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Total Interest and Dividend Income | $87,373 | $98,730 | -11.5% | | Total Interest Expense | $42,266 | $51,948 | -18.6% | | Net Interest Income | $45,107 | $46,782 | -3.6% | | Net Interest Margin | 2.70% | 2.55% | +15 bps | | Average Yield on Interest-Earning Assets | 5.22% | 5.38% | -16 bps | | Average Cost of Interest-Bearing Liabilities | 3.25% | 3.55% | -30 bps | - The increase in net interest margin was a result of a **30 basis point decrease in the cost of interest-bearing liabilities**, partially offset by a **16 basis point decrease in the rate earned on earning assets**[24](index=24&type=chunk) [Non-Interest Income](index=4&type=section&id=3.3.%20Non-Interest%20Income) Non-interest income significantly increased by **$5.0 million** for the first six months of 2025, moving from a loss in 2024 to a positive figure, primarily due to the absence of a **$4.8 million** loss on sale of loans recorded in 2024, along with increases in fees and service charges and BOLI income Non-Interest Income (YTD 2025 vs. YTD 2024) | Metric | YTD 2025 (thousand) | YTD 2024 (thousand) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Total Non-Interest Income (Loss) | $3,867 | ($1,125) | -443.7% | | Loss on Sales of Loans | — | ($4,806) | -100.0% | | Fees and Service Charges | $2,478 | $2,334 | 6.2% | | BOLI Income | $1,394 | $1,346 | 3.6% | - The increase was mainly related to the Bank recording a **$4.8 million loss on sale of loans** in 2024, which was not present in 2025[26](index=26&type=chunk) [Non-Interest Expense](index=4&type=section&id=3.4.%20Non-Interest%20Expense) Non-interest expense increased by **3.8%** to **$29.9 million** for the first six months of 2025, primarily driven by higher salaries and employee benefits, data processing costs, and professional fees, partially offset by a decrease in regulatory fees Non-Interest Expense (YTD 2025 vs. YTD 2024) | Metric | YTD 2025 (thousand) | YTD 2024 (thousand) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Total Non-Interest Expense | $29,928 | $28,825 | 3.8% | | Salaries and Employee Benefits | $15,116 | $13,973 | 8.2% | | Data Processing and Communications | $3,890 | $3,525 | 10.4% | | Professional Fees | $1,459 | $1,199 | 21.7% | | Regulatory Assessments | $1,513 | $2,095 | -27.8% | [Income Tax Provision (Benefit)](index=4&type=section&id=3.5.%20Income%20Tax%20Provision%20%28Benefit%29) The company recorded an income tax credit of **$1.9 million** for the first six months of 2025, a significant decrease from a **$3.6 million** provision in the same period of 2024, with this change being a direct result of lower taxable income Income Tax Provision (Benefit) (YTD 2025 vs. YTD 2024) | Metric | YTD 2025 (thousand) | YTD 2024 (thousand) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Income Tax (Benefit) Provision | ($1,930) | $3,623 | -153.3% | | Effective Tax Rate | 28.9% | 29.4% | -0.5 pp | - The decrease in the income tax provision was a result of lower taxable income for the six months ended June 30, 2025, compared to the same period in 2024[28](index=28&type=chunk) [Balance Sheet Review](index=2&type=section&id=Balance%20Sheet%20Review) This section examines the company's financial position, detailing changes in assets, liabilities, and stockholders' equity over the period [Assets](index=2&type=section&id=4.1.%20Assets) Total assets decreased by **6.1%** to **$3.380 billion** at June 30, 2025, from **$3.599 billion** at December 31, 2024, primarily due to decreases in net loans and cash and cash equivalents, while investment securities saw an increase Key Asset Changes (June 30, 2025 vs. December 31, 2024) | Asset Category | June 30, 2025 (million) | December 31, 2024 (million) | Change (%) | | :-------------------------------- | :-------------------------- | :------------------------------ | :--------- | | Total Assets | $3,380.5 | $3,599.1 | -6.1% | | Cash and Cash Equivalents | $206.9 | $317.3 | -34.8% | | Loans Receivable, Net | $2,860.5 | $2,996.3 | -4.5% | | Total Investment Securities | $140.0 | $111.2 | 25.9% | - The decrease in cash and cash equivalents was primarily due to the reduction of wholesale funding by paying down high-cost brokered deposits and FHLB advances[8](index=8&type=chunk) - Loans receivable, net, decreased by **$135.8 million**, with significant decreases in commercial real estate, multi-family, construction, and residential loans[9](index=9&type=chunk) [Liabilities](index=2&type=section&id=4.2.%20Liabilities) Total liabilities decreased by **6.4%** to **$3.065 billion** at June 30, 2025, from **$3.275 billion** at December 31, 2024, mainly driven by decreases in deposits and debt obligations, particularly FHLB advances Key Liability Changes (June 30, 2025 vs. December 31, 2024) | Liability Category | June 30, 2025 (million) | December 31, 2024 (million) | Change (%) | | :-------------------------------- | :-------------------------- | :------------------------------ | :--------- | | Total Liabilities | $3,064.7 | $3,275.2 | -6.4% | | Total Deposits | $2,661.5 | $2,750.9 | -3.2% | | Debt Obligations (FHLB advances) | $378.7 | $498.3 | -24.0% | | Brokered Deposits | Decreased by $119.4 million | - | - | | Transaction Accounts | Decreased by $29.6 million | - | - | - Deposits decreased by **$89.3 million**, with brokered deposits and transaction accounts decreasing, partially offset by increases in money market, certificate of deposit, and savings accounts[11](index=11&type=chunk) - Debt obligations decreased due to maturities and paydowns of FHLB advances, with the weighted average interest rate of FHLB advances decreasing to **4.18%** from **4.35%**[12](index=12&type=chunk) [Stockholders' Equity](index=2&type=section&id=4.3.%20Stockholders%27%20Equity) Stockholders' equity decreased by **2.5%** to **$315.7 million** at June 30, 2025, from **$323.9 million** at December 31, 2024, primarily due to a decrease in retained earnings, largely influenced by the Q1 2025 loss, partially offset by improvements in accumulated other comprehensive loss and additional paid-in capital Stockholders' Equity Changes (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (million) | December 31, 2024 (million) | Change (%) | | :-------------------------------- | :-------------------------- | :------------------------------ | :--------- | | Total Stockholders' Equity | $315.7 | $323.9 | -2.5% | | Retained Earnings | $130.6 | $141.9 | -7.9% | | Accumulated Other Comprehensive Loss | ($4.1) | ($5.2) | -21.8% | | Additional Paid-in Capital Common Stock | $202.3 | $200.9 | 0.7% | - The decrease in retained earnings was largely caused by the **$8.3 million loss** in the first quarter of 2025, due to additions to the allowance for credit losses[13](index=13&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) This section assesses the quality of the company's loan portfolio, focusing on credit losses, non-accrual loans, and specific risk areas [Net Charge-Offs and Non-Accrual Loans](index=4&type=section&id=5.1.%20Net%20Charge-Offs%20and%20Non-Accrual%20Loans) Net charge-offs significantly increased in Q2 2025 and YTD 2025 compared to prior periods, with non-accrual loans also seeing a substantial increase, reaching **$101.8 million** at June 30, 2025, representing **3.50%** of gross loans, with a notable portion being current on payments but classified as non-accrual due to underlying weaknesses Net Charge-Offs and Non-Accrual Loans | Metric | Q2 2025 (million) | Q2 2024 (million) | YTD 2025 (million) | YTD 2024 (million) | | :-------------------------------- | :-------------------- | :-------------------- | :--------------------- | :--------------------- | | Net Charge-Offs | $5.7 | $1.8 | $9.9 | $2.9 | | Non-Accrual Loans (as of period end) | $101.8 | $32.4 | $101.8 | $32.4 | | Non-Accrual Loans as % of Gross Loans (as of period end) | 3.50% | 1.01% | 3.50% | 1.01% | - More than **60% of non-accrual loans** are current with all payments, but are classified as non-accrual due to underlying weaknesses beyond payment status[30](index=30&type=chunk) [Allowance for Credit Losses](index=3&type=section&id=5.2.%20Allowance%20for%20Credit%20Losses) The provision for credit losses increased significantly in Q2 2025 and YTD 2025, largely driven by a specific reserve for a cannabis sector loan; the Allowance for Credit Losses (ACL) increased to **$50.7 million** at June 30, 2025, but its coverage of non-accrual loans decreased to **49.8%** from **108.6%** a year prior, reflecting the substantial rise in non-accrual loans Provision for Credit Losses and ACL | Metric | Q2 2025 (million) | Q2 2024 (million) | YTD 2025 (million) | YTD 2024 (million) | | :-------------------------------- | :-------------------- | :-------------------- | :--------------------- | :--------------------- | | Provision for Credit Losses | $4.9 | $2.4 | $25.7 | $4.5 | | ACL (as of period end) | $50.7 | $35.2 | $50.7 | $35.2 | | ACL as % of Non-Accrual Loans (as of period end) | 49.8% | 108.6% | 49.8% | 108.6% | | ACL as % of Gross Loans (as of period end) | 1.74% | 1.10% | 1.74% | 1.10% | - The increase in provision for credit losses for the first six months of 2025 was primarily driven by a previously reported **$13.7 million specific reserve** tied to a **$34.2 million loan** in the cannabis sector[25](index=25&type=chunk) [Cannabis Loan Portfolio](index=4&type=section&id=5.3.%20Cannabis%20Loan%20Portfolio) The company's cannabis loan portfolio had a balance of **$103.0 million** at the end of Q2 2025; the cannabis industry faces operating challenges, and this portfolio, largely secured by real estate, poses an increased amount of credit risk, potentially requiring material reserves in future periods - The cannabis loan portfolio had a balance of **$103.0 million** as of the end of the second quarter[25](index=25&type=chunk) - The cannabis industry is facing operating challenges, and the Bank's cannabis loan portfolio, largely secured by real estate, poses an increased amount of credit risk[25](index=25&type=chunk) - The portfolio has some larger relationships that could require material reserves in future periods if operating headwinds persist[25](index=25&type=chunk) [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) The Board of Directors declared a regular quarterly cash dividend of **$0.16** per share, payable on August 25, 2025, to shareholders of record on August 11, 2025 - A regular quarterly cash dividend of **$0.16 per share** was declared[3](index=3&type=chunk) - The dividend is payable on August 25, 2025, to common shareholders of record on August 11, 2025[3](index=3&type=chunk) [Company Overview and Disclosures](index=5&type=section&id=Company%20Overview%20and%20Disclosures) This section provides background information on BCB Bancorp, Inc., along with important forward-looking statements and non-GAAP financial measure explanations [About BCB Bancorp, Inc.](index=5&type=section&id=7.1.%20About%20BCB%20Bancorp%2C%20Inc.) BCB Bancorp, Inc., established in 2000 and headquartered in Bayonne, N.J., is the holding company for BCB Community Bank, which operates twenty-three branch offices in New Jersey and four in New York, offering a wide range of banking services to businesses and individuals - BCB Community Bank, a wholly-owned subsidiary of BCB Bancorp, Inc., was established in **2000** and is headquartered in Bayonne, N.J[31](index=31&type=chunk) - The Bank operates **23 branch offices in New Jersey** and **4 in New York**[31](index=31&type=chunk) - It provides a wide range of loans, deposit products, and retail and commercial banking services to businesses and individuals[31](index=31&type=chunk) [Forward-Looking Statements](index=5&type=section&id=7.2.%20Forward-Looking%20Statements) This section contains standard forward-looking statements, which are subject to inherent uncertainties and risks, where actual results may differ materially from anticipated results due to various factors, including economic conditions, market liquidity, interest rate changes, credit risk, regulatory changes, and other factors detailed in SEC filings - Forward-looking statements are based on certain assumptions and describe future plans, strategies, and expectations, but actual results may differ materially due to inherent uncertainties[32](index=32&type=chunk) - Significant factors that could cause future results to differ include global tariffs, higher inflation, general economic and recessionary concerns, impact on loan delinquencies, and reduced financial transactions[33](index=33&type=chunk) - Other factors include liquidity and capital management, supply chain disruptions, labor shortages, geopolitical conflicts, unfavorable economic conditions in primary market areas, and regulatory changes[33](index=33&type=chunk) [Explanation of Non-GAAP Financial Measures](index=6&type=section&id=7.3.%20Explanation%20of%20Non-GAAP%20Financial%20Measures) The press release includes supplemental Non-GAAP financial information, such as tangible stockholders' equity and efficiency ratios, which management believes are useful for analysts and investors to better understand and evaluate the company's financial results, aligning with measures utilized by regulators and market analysts - The press release contains supplemental Non-GAAP information used by management for financial analysis[35](index=35&type=chunk) - Management believes this information helps analysts and investors better understand and evaluate the Company's financial results[35](index=35&type=chunk) - Measures like tangible stockholders' equity and efficiency ratios are provided as they are utilized by regulators and market analysts[36](index=36&type=chunk) [Detailed Financial Statements and Data](index=7&type=section&id=Detailed%20Financial%20Statements%20and%20Data) This section presents comprehensive financial statements and supplementary data, offering granular insights into the company's performance and financial position [Statements of Operations - Three Months Ended](index=7&type=section&id=8.1.%20Statements%20of%20Operations%20-%20Three%20Months%20Ended) This table provides a detailed breakdown of the company's income statement for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, including interest income and expense, non-interest income and expense, provision for credit losses, and net income Statements of Operations - Three Months Ended (thousand) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Total interest and dividend income | $43,181 | $44,192 | $49,445 | | Total interest expense | $20,079 | $22,187 | $25,806 | | Net interest income | $23,102 | $22,005 | $23,639 | | Provision for credit losses | $4,891 | $20,845 | $2,438 | | Total non-interest income (loss) | $2,076 | $1,791 | ($3,234) | | Total non-interest expense | $15,268 | $14,660 | $13,987 | | Income (Loss) before income tax provision | $5,019 | ($11,709) | $3,980 | | Income tax provision (benefit) | $1,455 | ($3,385) | $1,163 | | Net Income (Loss) | $3,564 | ($8,324) | $2,817 | | Net Income (Loss) per common share-diluted | $0.18 | ($0.51) | $0.14 | [Statements of Operations - Six Months Ended](index=8&type=section&id=8.2.%20Statements%20of%20Operations%20-%20Six%20Months%20Ended) This table presents the consolidated statements of operations for the six months ended June 30, 2025, and June 30, 2024, providing a year-to-date view of the company's financial performance, including key revenue, expense, and profitability metrics Statements of Operations - Six Months Ended (thousand) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Total interest and dividend income | $87,373 | $98,730 | | Total interest expense | $42,266 | $51,948 | | Net interest income | $45,107 | $46,782 | | Provision for credit losses | $25,736 | $4,526 | | Total non-interest income (loss) | $3,867 | ($1,125) | | Total non-interest expense | $29,928 | $28,825 | | (Loss) Income before income tax provision | ($6,690) | $12,306 | | Income tax (benefit) provision | ($1,930) | $3,623 | | Net (Loss) Income | ($4,760) | $8,683 | | Net (Loss) Income per common share-diluted | ($0.33) | $0.46 | [Statements of Financial Condition](index=9&type=section&id=8.3.%20Statements%20of%20Financial%20Condition) This table details the company's balance sheet as of June 30, 2025, March 31, 2025, and December 31, 2024, providing a snapshot of assets, liabilities, and stockholders' equity at each period end Statements of Financial Condition (thousand) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :------------- | :---------------- | | Total Assets | $3,380,461 | $3,473,822 | $3,599,118 | | Total Cash and Cash Equivalents | $206,852 | $252,750 | $317,282 | | Loans receivable, net | $2,860,453 | $2,917,610 | $2,996,259 | | Total Deposits | $2,661,534 | $2,686,508 | $2,750,858 | | FHLB advances | $335,636 | $405,499 | $455,361 | | Total Liabilities | $3,064,726 | $3,159,100 | $3,275,193 | | Total Stockholders' Equity | $315,735 | $314,722 | $323,925 | [Average Balances and Rates - Three Months Ended](index=10&type=section&id=8.4.%20Average%20Balances%20and%20Rates%20-%20Three%20Months%20Ended) This table presents average balances, interest earned/paid, and average yields/rates for interest-earning assets and interest-bearing liabilities for the three months ended June 30, 2025, and June 30, 2024, providing insights into net interest margin and spread Average Balances and Rates - Three Months Ended (thousand) | Metric | Q2 2025 Average Balance (thousand) | Q2 2025 Interest Earned/Paid (thousand) | Q2 2025 Average Yield/Rate | Q2 2024 Average Balance (thousand) | Q2 2024 Interest Earned/Paid (thousand) | Q2 2024 Average Yield/Rate | | :-------------------------------- | :---------------------- | :--------------------------- | :------------------------- | :---------------------- | :--------------------------- | :------------------------- | | Total Interest-earning assets | $3,306,996 | $43,181 | 5.24% | $3,639,428 | $49,445 | 5.43% | | Total Interest-bearing liabilities | $2,548,992 | $20,079 | 3.16% | $2,897,452 | $25,806 | 3.56% | | Net interest income | - | $23,102 | - | - | $23,639 | - | | Net interest rate spread | - | - | 2.08% | - | - | 1.87% | | Net interest margin | - | - | 2.80% | - | - | 2.60% | [Average Balances and Rates - Six Months Ended](index=11&type=section&id=8.5.%20Average%20Balances%20and%20Rates%20-%20Six%20Months%20Ended) This table details the average balances, interest earned/paid, and average yields/rates for interest-earning assets and interest-bearing liabilities for the six months ended June 30, 2025, and June 30, 2024, offering a comprehensive view of interest rate dynamics over the year-to-date period Average Balances and Rates - Six Months Ended (thousand) | Metric | YTD 2025 Average Balance (thousand) | YTD 2025 Interest Earned/Paid (thousand) | YTD 2025 Average Yield/Rate | YTD 2024 Average Balance (thousand) | YTD 2024 Interest Earned/Paid (thousand) | YTD 2024 Average Yield/Rate | | :-------------------------------- | :---------------------- | :--------------------------- | :------------------------- | :---------------------- | :--------------------------- | :------------------------- | | Total Interest-earning assets | $3,374,892 | $87,373 | 5.22% | $3,669,380 | $98,730 | 5.38% | | Total Interest-bearing liabilities | $2,624,656 | $42,266 | 3.25% | $2,927,390 | $51,948 | 3.55% | | Net interest income | - | $45,107 | - | - | $46,782 | - | | Net interest rate spread | - | - | 1.97% | - | - | 1.83% | | Net interest margin | - | - | 2.70% | - | - | 2.55% | [Quarterly Financial Condition and Operating Data](index=12&type=section&id=8.6.%20Quarterly%20Financial%20Condition%20and%20Operating%20Data) This section provides a quarterly summary of key financial condition data, operating data, financial ratios, and asset quality ratios from Q2 2025 back to Q2 2024, allowing for trend analysis across multiple periods Financial Condition Data by Quarter (thousand) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total assets | $3,380,461 | $3,473,822 | $3,599,118 | $3,613,770 | $3,793,941 | | Loans receivable, net | $2,860,453 | $2,917,610 | $2,996,259 | $3,087,914 | $3,161,925 | | Deposits | $2,661,534 | $2,686,508 | $2,750,858 | $2,724,580 | $2,935,239 | | Stockholders' equity | $315,735 | $314,722 | $323,925 | $328,113 | $320,732 | Operating Data by Quarter (thousand) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net interest income | $23,102 | $22,005 | $22,194 | $23,045 | $23,639 | | Net (loss) income | $3,564 | ($8,324) | $3,272 | $6,668 | $2,817 | | Net (loss) income per diluted share | $0.18 | ($0.51) | $0.16 | $0.36 | $0.14 | | Common Dividends declared per share | $0.16 | $0.16 | $0.16 | $0.16 | $0.16 | Financial Ratios and Asset Quality Ratios by Quarter | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Return on average assets | 0.42% | (0.95%) | 0.36% | 0.72% | 0.30% | | Net interest margin | 2.80% | 2.59% | 2.53% | 2.58% | 2.60% | | Efficiency Ratio | 60.64% | 61.61% | 62.11% | 53.22% | 68.55% | | Non-Accrual Loans as a % of Total Loans | 3.50% | 3.36% | 1.48% | 1.13% | 1.01% | | ACL as % of Non-Accrual Loans | 49.8% | 51.6% | 77.8% | 98.2% | 108.6% | [Loan and Deposit Portfolio Details](index=13&type=section&id=8.7.%20Loan%20and%20Deposit%20Portfolio%20Details) This section provides detailed quarterly data on the recorded investment in loans receivable by type, non-accruing loans within the portfolio, and the distribution of deposits by category, offering granular insights into the composition and quality of the loan and deposit books Recorded Investment in Loans Receivable by Quarter (thousand) | Loan Type | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Residential one-to-four family | $230,917 | $232,456 | $239,870 | $241,050 | $242,706 | | Commercial and multi-family | $2,177,268 | $2,221,218 | $2,246,677 | $2,296,886 | $2,340,385 | | Construction | $116,214 | $118,779 | $135,434 | $146,471 | $173,207 | | Commercial business | $315,333 | $330,358 | $342,799 | $371,365 | $375,355 | | Total loans, net | $2,860,453 | $2,917,610 | $2,996,259 | $3,087,914 | $3,161,925 | Non-Accruing Loans in Portfolio by Quarter (thousand) | Loan Type | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Residential one-to-four family | $1,436 | $1,138 | $1,387 | $410 | $350 | | Commercial and multi-family | $91,480 | $89,296 | $32,974 | $27,693 | $27,796 | | Commercial business | $7,769 | $8,374 | $9,530 | $6,498 | $3,673 | | Total Non-Accruing Loans | $101,764 | $99,833 | $44,708 | $35,330 | $32,448 | Distribution of Deposits by Quarter (thousand) | Deposit Type | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Non-Interest Bearing | $539,093 | $542,620 | $520,387 | $523,816 | $528,089 | | Interest Bearing Demand | $503,336 | $537,468 | $553,731 | $527,862 | $549,239 | | Money Market | $428,397 | $405,793 | $366,655 | $371,689 | $395,004 | | Certificates of Deposit | $932,123 | $945,895 | $1,029,245 | $1,046,859 | $1,231,815 | | Total Deposits | $2,661,534 | $2,686,508 | $2,750,858 | $2,724,580 | $2,935,239 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=14&type=section&id=8.8.%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides a reconciliation of GAAP to Non-GAAP financial measures, specifically for Tangible Book Value per Share and Efficiency Ratios, across multiple quarters, allowing for a clear understanding of how these non-GAAP metrics are derived and their trends Tangible Book Value per Share (thousand, except per share amounts) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total Stockholders' Equity | $315,735 | $314,722 | $323,925 | $328,113 | $320,732 | | Less: goodwill | $5,253 | $5,253 | $5,253 | $5,253 | $5,253 | | Less: preferred stock | $25,243 | $25,243 | $24,723 | $29,763 | $28,403 | | Total tangible common stockholders' equity | $285,239 | $284,226 | $293,949 | $293,097 | $287,076 | | Tangible book value per common share | $16.59 | $16.56 | $17.23 | $17.19 | $16.86 | Efficiency Ratios (thousand, except for ratio %) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net interest income | $23,102 | $22,005 | $22,194 | $23,045 | $23,639 | | Non-interest income (loss) | $2,076 | $1,791 | $938 | $3,127 | ($3,234) | | Total income | $25,178 | $23,796 | $23,132 | $26,172 | $20,405 | | Non-interest expense | $15,268 | $14,660 | $14,367 | $13,929 | $13,987 | | Efficiency Ratio | 60.64% | 61.61% | 62.11% | 53.22% | 68.55% |

Core Insights - BCB Bancorp reported revenue of $25.18 million for Q2 2025, a year-over-year increase of 23.4% and a surprise of +8.32% over the Zacks Consensus Estimate of $23.25 million [1] - The company's EPS for the same period was $0.18, unchanged from the consensus estimate, compared to $0.14 a year ago [1] Financial Performance Metrics - Net Interest Margin was reported at 2.8%, exceeding the two-analyst average estimate of 2.5% [4] - The Efficiency Ratio stood at 60.6%, better than the average estimate of 64.7% based on two analysts [4] - Total Non-Interest Income was $2.08 million, surpassing the average estimate of $1.94 million [4] - Net Interest Income reached $23.1 million, compared to the average estimate of $21.31 million [4] Stock Performance - BCB Bancorp shares returned +1.8% over the past month, while the Zacks S&P 500 composite increased by +4.9% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance against the broader market in the near term [3]

Group 1: Earnings Performance - BCB Bancorp reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate, and an increase from $0.14 per share a year ago [1] - The company posted revenues of $25.18 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 8.32%, compared to $20.41 million in the same quarter last year [2] - Over the last four quarters, BCB Bancorp has surpassed consensus EPS estimates only once [1] Group 2: Stock Performance and Outlook - BCB Bancorp shares have declined approximately 27.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $24.41 million, and for the current fiscal year, it is $0.14 on revenues of $96.65 million [7] - The estimate revisions trend for BCB Bancorp was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Zacks Industry Rank for Banks - Northeast places it in the top 15% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - BCB Bancorp, Inc. reported a net income of $3.6 million for Q2 2025, a significant recovery from a net loss of $8.3 million in Q1 2025, indicating a positive trend in core profitability driven by net interest margin expansion and balance sheet optimization [1][3][14]. Financial Performance - Net income for Q2 2025 was $3.6 million, compared to a net loss of $8.3 million in Q1 2025 and net income of $2.8 million in Q2 2024 [1][14]. - Earnings per diluted share for Q2 2025 was $0.18, recovering from a loss of ($0.51) in Q1 2025 and up from $0.14 in Q2 2024 [1][14]. - The provision for credit losses was $4.9 million in Q2 2025, down from $20.8 million in Q1 2025 and up from $2.4 million in Q2 2024 [8][18]. Balance Sheet Review - Total assets decreased by $218.7 million, or 6.1%, to $3.380 billion as of June 30, 2025, from $3.599 billion at December 31, 2024 [6]. - Total cash and cash equivalents decreased by $110.4 million, or 34.8%, to $206.9 million at June 30, 2025 [7]. - Loans receivable, net, decreased by $135.8 million, or 4.5%, to $2.860 billion at June 30, 2025 [8]. - Total deposits were $2.662 billion at June 30, 2025, down from $2.687 billion at March 31, 2025 [8][11]. Interest and Expense Analysis - Net interest margin for Q2 2025 was 2.80%, up from 2.59% in Q1 2025 and 2.60% in Q2 2024 [8][17]. - Interest income decreased by $6.3 million, or 12.7%, to $43.2 million for Q2 2025 compared to $49.4 million for Q2 2024 [15]. - Interest expense decreased by $5.7 million to $20.1 million for Q2 2025 from $25.8 million for Q2 2024 [16]. Asset Quality - Non-accrual loans totaled $101.8 million, or 3.50% of gross loans, at June 30, 2025, compared to $32.4 million, or 1.01%, at June 30, 2024 [31]. - The allowance for credit losses increased to $50.7 million, or 1.74% of gross loans, at June 30, 2025, from $34.8 million, or 1.15%, at December 31, 2024 [9][31]. Dividend Declaration - The Board of Directors declared a regular quarterly cash dividend of $0.16 per share, payable on August 25, 2025, to common shareholders of record on August 11, 2025 [2].

Core Insights - BCB Bank has promoted Daniel A. Araujo to Senior Vice President and Chief Lending Officer, reflecting the bank's commitment to a customer-first approach and organizational excellence [1][5] - Araujo has over 20 years of experience in the lending industry, having previously held significant roles at Citizens Bank and Investors Bank, where he led critical lending initiatives [2][3] - In his new role, Araujo will oversee credit policy, risk governance, and portfolio strategy, while enhancing customer experience through strategic vision and collaboration [4] Company Overview - BCB Community Bank, established in 2000 and headquartered in Bayonne, N.J., is a wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP) [6] - The bank operates twenty-three branches in New Jersey and four branches in New York, offering a wide range of loans, deposit products, and banking services to businesses and individuals [6]

[PART I. CONSOLIDATED FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20CONSOLIDATED%20FINANCIAL%20INFORMATION) [ITEM I. CONSOLIDATED FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%20I.%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements of BCB Bancorp, Inc. and its subsidiaries for the periods ended March 31, 2025, and December 31, 2024, including the Statements of Financial Condition, Operations, Comprehensive Income (Loss), Changes in Stockholders' Equity, and Cash Flows [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Consolidated financial position shows a decrease in total assets and liabilities, with a modest decline in stockholders' equity | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total Assets | $3,473,822 | $3,599,118 | | Total Liabilities | $3,159,100 | $3,275,193 | | Total Stockholders' Equity | $314,722 | $323,925 | - Total Assets decreased by **$125.3 million (3.5%)** from December 31, 2024, to March 31, 2025, primarily due to decreases in net loans and cash and cash equivalents[11](index=11&type=chunk)[150](index=150&type=chunk) - Total Liabilities decreased by **$116.093 million** from December 31, 2024, to March 31, 2025, mainly driven by a reduction in deposits and FHLB advances[11](index=11&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - Total Stockholders' Equity decreased by **$9.2 million (2.8%)** from December 31, 2024, to March 31, 2025, primarily due to a decrease in retained earnings[11](index=11&type=chunk)[156](index=156&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net loss in Q1 2025, primarily due to a significant increase in the provision for credit losses | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total interest and dividend income | $44,192 | $49,285 | $42,352 | | Total interest expense | $22,187 | $26,142 | $14,881 | | Net interest income | $22,005 | $23,143 | $27,471 | | Provision for credit losses | $20,845 | $2,088 | $622 | | Net (Loss) Income | $(8,324) | $5,866 | $8,106 | | Net (Loss) Income available to common stockholders | $(8,806) | $5,432 | $7,933 | | Basic EPS | $(0.51) | $0.32 | $0.47 | | Diluted EPS | $(0.51) | $0.32 | $0.46 | - The Company reported a net loss of **$8.3 million** for Q1 2025, a significant decline from net income of **$5.9 million** in Q1 2024, primarily due to an **$18.8 million** increase in the provision for credit losses[14](index=14&type=chunk)[162](index=162&type=chunk) - Net interest income decreased by **$1.1 million (4.9%)** to **$22.0 million** in Q1 2025 compared to **$23.1 million** in Q1 2024, as lower interest income was partially offset by lower interest expense[14](index=14&type=chunk)[162](index=162&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company experienced a comprehensive loss in Q1 2025, primarily driven by the net loss, despite positive other comprehensive income | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net (Loss) Income | $(8,324) | $5,866 | $8,106 | | Other comprehensive income (loss) | $970 | $(133) | $(122) | | Comprehensive (loss) income | $(7,354) | $5,733 | $7,984 | - Comprehensive loss for Q1 2025 was **$(7.354) million**, a significant decrease from comprehensive income of **$5.733 million** in Q1 2024, mainly driven by the net loss[16](index=16&type=chunk) - Other comprehensive income for Q1 2025 was **$970 thousand**, a positive change compared to a loss of **$(133) thousand** in Q1 2024, primarily due to unrealized holding gains on available-for-sale debt securities[16](index=16&type=chunk) [Consolidated Statement of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity decreased in Q1 2025 due to a net loss and common stock dividends, partially offset by other comprehensive income and preferred stock issuance | Metric | Balance at January 1, 2025 (in thousands) | Balance at March 31, 2025 (in thousands) | | :----------------------------------- | :-------------------------------------- | :------------------------------------- | | Total Stockholders' Equity | $323,925 | $314,722 | | Net loss | - | $(8,324) | | Other comprehensive income | - | $970 | | Issuance of Series K Preferred Stock | - | $520 | | Stock-based compensation expense | - | $321 | | Dividends payable on preferred stock | - | $(482) | | Cash dividends on common stock | - | $(2,679) | | Dividend reinvestment plan | - | - | | Stock Purchase Plan | - | $471 | - Stockholders' equity decreased from **$323.925 million** at January 1, 2025, to **$314.722 million** at March 31, 2025, primarily due to the net loss and common stock dividends, partially offset by other comprehensive income and preferred stock issuance[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in financing activities significantly impacted cash and cash equivalents, leading to a decrease in the ending balance for Q1 2025 | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net Cash Provided by Operating Activities | $5,008 | $8,288 | $16,414 | | Net Cash Provided by (Used in) Investing Activities | $46,980 | $51,910 | $(185,704) | | Net Cash Provided by (Used in) Financing Activities | $(116,520) | $12,727 | $201,006 | | Net Increase (Decrease) in Cash and Cash Equivalents | $(64,532) | $72,925 | $31,716 | | Cash and Cash Equivalents-Ending | $252,750 | $352,448 | $261,075 | - Net cash used in financing activities was **$(116.520) million** in Q1 2025, a significant shift from net cash provided of **$12.727 million** in Q1 2024, primarily due to a net decrease in deposits and repayment of FHLB advances[20](index=20&type=chunk) - Cash and cash equivalents decreased by **$64.532 million** in Q1 2025, resulting in an ending balance of **$252.750 million**, compared to an increase of **$72.925 million** in Q1 2024[20](index=20&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations for the unaudited consolidated financial statements, covering the basis of presentation, recent accounting pronouncements, equity incentive plans, securities, loans and allowance for credit losses, stockholders' equity, bank-owned life insurance, goodwill and other intangibles, fair values of financial instruments, subordinated debt, lease obligations, and subsequent events [Note 1 – Basis of Presentation](index=8&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation) This note outlines the company's structure as a New Jersey bank holding company, its NASDAQ listing, and its primary business operations - BCB Bancorp, Inc. is a New Jersey bank holding company, with its common stock listed on NASDAQ under 'BCBP'[23](index=23&type=chunk) - The Company's primary business is the ownership and operation of BCB Community Bank, which operates 27 locations in New Jersey and New York, attracting deposits and investing in securities and loans[24](index=24&type=chunk) - The Company operates as a single reportable segment, with the President & CEO as the Chief Operating Decision Maker, evaluating performance using net interest income and net income[26](index=26&type=chunk) [Note 2 - Recent Accounting Pronouncements](index=8&type=section&id=Note%202%20-%20Recent%20Accounting%20Pronouncements) This note details the impact of recent accounting pronouncements on the company's financial statements and disclosures - ASU 2024-02 (Codification Improvements) became effective January 1, 2025, and did not have a material impact on the Company's financial statements[30](index=30&type=chunk) - ASU 2023-09 (Income Taxes) is effective for annual periods beginning after December 15, 2024, and the Company is currently evaluating its impact on disclosures[31](index=31&type=chunk) - ASU 2023-07 (Segment Reporting) did not have an impact on the consolidated financial statements upon adoption[32](index=32&type=chunk) - Starting Q1 2025, the Company includes cannabis-related loans as a separate segment for allowance for credit losses calculation due to their unique characteristics, with a portfolio of **$103.6 million** at March 31, 2025[36](index=36&type=chunk) [Note 3 – Reclassification](index=9&type=section&id=Note%203%20%E2%80%93%20Reclassification) This note clarifies that certain amounts have been reclassified for presentation consistency, without affecting financial results or position - Certain amounts have been reclassified to conform to the current period's presentation, with no effect on the Company's results of operations or financial position[41](index=41&type=chunk) [Note 4 – Equity Incentive Plans](index=10&type=section&id=Note%204%20%E2%80%93%20Equity%20Incentive%20Plans) This note describes the company's active equity incentive plans, including stock options and restricted stock awards for employees and directors | Metric | March 31, 2025 | March 31, 2024 | | :----------------------------------- | :------------- | :------------- | | Non-vested Restricted Shares (Number) | 107,273 | 64,402 | | Weighted Average Grant Date Fair Value (Restricted Shares) | $10.93 | $14.73 | | Restricted stock expense (Q1) | $257,000 | $156,000 | | Outstanding Stock Options (Number) | 957,738 | N/A | | Weighted Average Exercise Price (Stock Options) | $11.64 | N/A | | Stock option compensation expense (Q1) | $64,000 | $39,000 | - The Company has three active equity incentive plans (2023, 2018, 2011) authorizing the issuance of common stock through stock options, restricted stock awards, and performance awards to employees and directors[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - As of March 31, 2025, **63,763** stock options were granted to officers, and **43,773** shares of restricted stock were awarded to Board members[46](index=46&type=chunk)[47](index=47&type=chunk) [Note 5 – Net (Loss) Income per Common Share](index=11&type=section&id=Note%205%20%E2%80%93%20Net%20(Loss)%20Income%20per%20Common%20Share) This note details the calculation of basic and diluted earnings per share, highlighting the impact of net loss on dilution | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net (loss) income available to common stockholders (in thousands) | $(8,806) | $5,432 | $7,933 | | Basic EPS | $(0.51) | $0.32 | $0.47 | | Diluted EPS | $(0.51) | $0.32 | $0.46 | | Weighted average common shares outstanding (Basic) | 17,113 | 16,930 | 16,949 | | Weighted average common shares outstanding (Diluted) | 17,113 | 16,939 | 17,208 | - Dilution is not applicable in periods of net loss, as seen in Q1 2025 where basic and diluted EPS were both **$(0.51)**[54](index=54&type=chunk)[55](index=55&type=chunk) - There were 950,000 outstanding options considered anti-dilutive for Q1 2025, compared to 508,000 in Q1 2024[54](index=54&type=chunk) [Note 6 - Securities](index=11&type=section&id=Note%206%20-%20Securities) This note provides details on the company's securities portfolio, including net gains/losses on equity securities and fair value changes in available-for-sale debt securities | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net (losses) gains on equity securities | $(115) | $130 | $(3,227) | | Debt Securities Available for Sale | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Amortized Cost | $122,082 | $108,590 | | Gross Unrealized Gains | $437 | $188 | | Gross Unrealized Losses | $6,023 | $7,061 | | Fair Value | $116,496 | $101,717 | - As of March 31, 2025, the fair value of debt securities available for sale increased to **$116.496 million** from **$101.717 million** at December 31, 2024, with a decrease in gross unrealized losses[57](index=57&type=chunk) | Unrealized Losses on AFS Securities | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Total Fair Value | $87,521 | $90,134 | | Total Unrealized Losses | $6,023 | $7,061 | | Unrealized Losses (12 Months or Less) | $23 | $146 | | Unrealized Losses (More than 12 Months) | $6,000 | $6,915 | [Note 7 - Loans Receivable and Allowance for Credit Losses](index=13&type=section&id=Note%207%20-%20Loans%20Receivable%20and%20Allowance%20for%20Credit%20Losses) This note details the composition of the loan portfolio, changes in the allowance for credit losses, and delinquency status | Loan Segment | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Residential one-to-four family | $232,456 | $239,870 | | Commercial and multi-family | $2,131,047 | $2,155,929 | | Cannabis related | $103,579 | $103,206 | | Construction | $113,934 | $130,589 | | Commercial business | $234,048 | $242,239 | | Business express | $87,747 | $92,947 | | Home equity | $66,479 | $66,769 | | Consumer | $2,271 | $2,235 | | Total Gross Loans | $2,971,561 | $3,033,784 | | Allowance for credit losses | $(51,484) | $(34,789) | | Total Loans, net | $2,917,610 | $2,996,259 | - Total net loans decreased by **$78.6 million (2.6%)** from December 31, 2024, to March 31, 2025, with decreases across most loan categories[59](index=59&type=chunk)[152](index=152&type=chunk) - The allowance for credit losses increased significantly by **$16.7 million** to **$51.5 million** at March 31, 2025, representing **1.73%** of gross loans, up from **1.15%** at December 31, 2024[59](index=59&type=chunk)[152](index=152&type=chunk)[166](index=166&type=chunk) | Allowance for Credit Losses Activity (in thousands) | Q1 2025 | Q1 2024 | Q1 2023 | | :-------------------------------------------------- | :------ | :------ | :------ | | Beginning Balance | $34,789 | $33,608 | $28,208 | | Charge-offs | $(4,198) | $(1,151) | $(1) | | Recoveries | $48 | $18 | $53 | | Provision (benefit) | $20,845 | $2,088 | $622 | | Ending Balance | $51,484 | $34,563 | $28,882 | - The provision for credit losses surged to **$20.8 million** in Q1 2025 from **$2.088 million** in Q1 2024, driven by a **$13.7 million** specific reserve for a cannabis sector loan and a **$3.1 million** increase for the Business Express Loan portfolio[70](index=70&type=chunk)[166](index=166&type=chunk) | Delinquency Status (in thousands) | March 31, 2025 | December 31, 2024 | | :---------------------------------- | :------------- | :---------------- | | Total Past Due | $87,603 | $76,703 | | Current | $2,883,958 | $2,957,081 | | Total Loans Receivable | $2,971,561 | $3,033,784 | | Loans Receivable >90 Days Past Due and Accruing | $0 | $7,726 | - Non-accrual loans increased significantly to **$99.8 million (3.36%)** of gross loans at March 31, 2025, from **$44.7 million (1.48%)** of gross loans at December 31, 2024[90](index=90&type=chunk)[92](index=92&type=chunk)[166](index=166&type=chunk) | Loan Modifications (Q1 2025) | Number | Total Principal (in thousands) | | :----------------------------------- | :----- | :----------------------------- | | Commercial business (Term Extension) | 3 | $1,006 | | Business express (Term Extension) | 65 | $15,563 | | Total | 68 | $16,569 | - During the preceding twelve months, five Business express loans totaling **$1.2 million** subsequently defaulted and were charged-off in full after modification[87](index=87&type=chunk) [Note 8 – Stockholders' Equity](index=23&type=section&id=Note%208%20%E2%80%93%20Stockholders'%20Equity) This note details changes in stockholders' equity, including preferred stock issuances and redemptions - On March 15, 2025, the Company completed a private placement of **52** shares of Series K **6.0%** Noncumulative Perpetual Stock, generating gross proceeds of **$520,000**[103](index=103&type=chunk) - In 2024, the Company closed multiple private placements of Series J Noncumulative Perpetual Stock, totaling **$4.72 million** in gross proceeds[103](index=103&type=chunk)[104](index=104&type=chunk) - The Company redeemed all outstanding shares of its Series H 3.5% Noncumulative Perpetual Preferred Stock in 2023, totaling **$11.22 million**[106](index=106&type=chunk) [Note 9 – Bank-Owned Life Insurance](index=23&type=section&id=Note%209%20%E2%80%93%20Bank-Owned%20Life%20Insurance) This note reports the value of the company's Bank-Owned Life Insurance (BOLI) holdings - At March 31, 2025, the Bank held **$76.6 million** in Bank-Owned Life Insurance (BOLI), recorded at its net realizable value[107](index=107&type=chunk) [Note 10 – Goodwill and Other Intangible Assets](index=23&type=section&id=Note%2010%20%E2%80%93%20Goodwill%20and%20Other%20Intangible%20Assets) This note provides information on the company's goodwill and other intangible assets, including amortization status - The Company's goodwill remained at **$5.2 million** at March 31, 2025, 2024, and 2023, with no impairment recognized[109](index=109&type=chunk)[111](index=111&type=chunk) - Core deposit intangibles were fully amortized during the year ended December 31, 2023[109](index=109&type=chunk) [Note 11 – Fair Values of Financial Instruments](index=24&type=section&id=Note%2011%20%E2%80%93%20Fair%20Values%20of%20Financial%20Instruments) This note presents the fair values of the company's financial instruments, including securities, loans, deposits, and borrowings | Assets Measured at Fair Value (in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------------- | :------------- | :---------------- | | Debt Securities Available for Sale (Level 2) | $116,496 | $101,717 | | Marketable Equities (Level 1) | $9,357 | $9,472 | | Total Securities | $125,853 | $111,189 | | Assets Measured at Fair Value on a Nonrecurring Basis (in thousands) | March 31, 2025 | December 31, 2024 | | :----------------------------------------------------------------- | :------------- | :---------------- | | Individually Evaluated Loans (Level 3) | $28,954 | $19,391 | - Losses on individually evaluated loans for Q1 2025 were **$15.5 million**, compared to **$7.6 million** for the twelve months ended December 31, 2024[117](index=117&type=chunk) | Carrying Values and Estimated Fair Values (in thousands) | March 31, 2025 (Carrying Value) | March 31, 2025 (Fair Value) | December 31, 2024 (Carrying Value) | December 31, 2024 (Fair Value) | | :------------------------------------------------------- | :------------------------------ | :-------------------------- | :--------------------------------- | :----------------------------- | | Cash and cash equivalents | $252,750 | $252,750 | $317,282 | $317,282 | | Loans receivable, net | $2,917,610 | $2,834,828 | $2,996,259 | $2,900,892 | | Deposits | $2,686,508 | $2,686,343 | $2,750,858 | $2,751,625 | | Borrowings | $405,499 | $407,161 | $455,361 | $456,290 | | Subordinated debentures | $43,024 | $41,262 | $42,961 | $41,594 | [Note 12 – Subordinated debt](index=27&type=section&id=Note%2012%20%E2%80%93%20Subordinated%20debt) This note describes the company's subordinated debt, including recent issuances and repurchases, and their capital treatment - On August 29, 2024, the Company issued **$40 million** of fixed-to-floating subordinated debentures with a 10-year term, bearing a fixed interest rate of **9.250%** for the first five years[135](index=135&type=chunk) - The new debentures qualify as Tier 2 capital for the Company and Tier 1 capital for the Bank, and the proceeds were used to repurchase **$33.5 million** of older subordinated debt[135](index=135&type=chunk) - The Company also has **$4.1 million** in mandatory redeemable trust preferred securities, with an interest rate of **7.211%** at March 31, 2025, adjusted quarterly based on three-month CME Term SOFR plus a spread adjustment[136](index=136&type=chunk)[137](index=137&type=chunk) [Note 13 – Lease Obligations](index=27&type=section&id=Note%2013%20%E2%80%93%20Lease%20Obligations) This note provides details on the company's operating lease costs, right-of-use assets, liabilities, and maturity schedules | Lease Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost (Q1) | $940 | $885 | | Variable lease cost-operating leases (Q1) | $284 | $282 | | Operating lease right-of-use assets | $12,622 | $12,686 | | Total operating lease liabilities | $13,087 | $13,139 | | Weighted average remaining lease term | 5.21 years | 5.39 years | | Weighted average discount rate | 3.48% | 3.40% | | Maturities of Lease Liabilities (in thousands) | March 31, 2025 | December 31, 2024 | | :--------------------------------------------- | :------------- | :---------------- | | One year or less | $2,477 | $3,189 | | Over one year through three years | $5,987 | $5,680 | | Over three years through five years | $3,533 | $3,213 | | Over five years | $2,405 | $2,406 | | Gross Operating Lease Liabilities | $14,402 | $14,488 | | Imputed Interest | $(1,315) | $(1,349) | | Total Operating Lease Liabilities | $13,087 | $13,139 | [Note 14 – Subsequent Events](index=27&type=section&id=Note%2014%20%E2%80%93%20Subsequent%20Events) This note reports a cash dividend declared by the Board of Directors after the reporting period - On April 22, 2025, the Board of Directors declared a cash dividend of **$0.16** per share for common stockholders, payable on May 21, 2025[141](index=141&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, including an overview of its business, critical accounting estimates, analysis of financial condition changes, net interest income, and a comparison of operating results for the three months ended March 31, 2025, and 2024 [Forward-Looking Statements](index=28&type=section&id=Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements subject to various risks and uncertainties - The report contains forward-looking statements subject to risks and uncertainties, including the impact of higher inflation, interest rates, general economic concerns, and geopolitical risks[142](index=142&type=chunk)[143](index=143&type=chunk) [Overview](index=28&type=section&id=Overview) This overview describes BCB Bancorp, Inc. as a bank holding company operating BCB Community Bank, offering diverse banking services and products | Metric | March 31, 2025 (in thousands) | | :----------------------------------- | :----------------------------- | | Consolidated Assets | $3,474,000 | | Deposits | $2,687,000 | | Consolidated Stockholders' Equity | $314,700 | - BCB Bancorp, Inc. is the holding company for BCB Community Bank, which operates 23 branches in New Jersey and New York[145](index=145&type=chunk)[146](index=146&type=chunk) - The Bank offers FDIC-insured deposit products and invests funds in various loans (commercial, residential, home equity, construction, consumer, commercial business) and investment securities, along with retail and commercial banking services[148](index=148&type=chunk)[158](index=158&type=chunk) [Critical Accounting Estimates](index=29&type=section&id=Critical%20Accounting%20Estimates) This section identifies the Allowance for Credit Losses as a critical accounting estimate due to its inherent judgment and sensitivity to economic forecasts - The Allowance for Credit Losses is identified as a critical accounting estimate due to the high degree of judgment, subjectivity of assumptions, and potential for changes in the forecasted economic environment[148](index=148&type=chunk) [Financial Condition](index=29&type=section&id=Financial%20Condition) This section analyzes changes in the company's financial condition, including decreases in assets, cash, loans, deposits, and debt obligations | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Total Assets | $3,474,000 | $3,599,000 | $(125,000) | (3.5%) | | Total cash and cash equivalents | $252,800 | $317,300 | $(64,500) | (20.3%) | | Loans receivable, net | $2,918,000 | $2,996,000 | $(78,000) | (2.6%) | | Total investment securities | $125,900 | $111,200 | $14,700 | 13.2% | | Deposits | $2,687,000 | $2,751,000 | $(64,000) | (2.3%) | | Debt obligations | $448,500 | $498,300 | $(49,800) | (10.0%) | | Stockholders' equity | $314,700 | $323,900 | $(9,200) | (2.8%) | - The decrease in cash and cash equivalents was primarily due to the reduction of wholesale funding by paying down high-cost brokered deposits[151](index=151&type=chunk) - Brokered deposits decreased by **$112.5 million**, partially offset by increases in other deposit categories[154](index=154&type=chunk) [Net Interest Income Analysis](index=30&type=section&id=Net%20Interest%20Income%20Analysis) This section analyzes the company's net interest income, net interest rate spread, and net interest margin, highlighting changes in asset yields and liability costs | Metric | Q1 2025 | Q1 2024 | | :----------------------------------- | :------ | :------ | | Net interest income (in thousands) | $22,005 | $23,143 | | Net interest rate spread | 1.87% | 1.79% | | Net interest margin | 2.59% | 2.50% | | Average yield on interest-earning assets | 5.20% | 5.33% | | Average cost of interest-bearing liabilities | 3.33% | 3.54% | - Net interest margin increased to **2.59%** in Q1 2025 from **2.50%** in Q1 2024, driven by a decrease in the cost of interest-bearing liabilities, partially offset by a decrease in the yield on interest-earning assets[165](index=165&type=chunk) [Results of Operations Comparison for the Three Months Ended March 31, 2025 and 2024](index=31&type=section&id=Results%20of%20Operations%20Comparison%20for%20the%20Three%20Months%20Ended%20March%2031,%202025%20and%202024) This section compares the company's operating results for Q1 2025 and Q1 2024, focusing on net loss, interest income/expense, and non-interest items - Net loss of **$8.3 million** in Q1 2025 compared to net income of **$5.9 million** in Q1 2024, primarily due to an **$18.8 million** increase in provision for credit losses[162](index=162&type=chunk) - Interest income decreased by **$5.1 million (10.3%)** to **$44.2 million** in Q1 2025, while interest expense decreased by **$4.0 million (15.1%)** to **$22.2 million**[163](index=163&type=chunk)[164](index=164&type=chunk) - Net charge-offs were **$4.2 million** in Q1 2025, up from **$1.1 million** in Q1 2024[166](index=166&type=chunk) | Classified Loans > $5M (March 31, 2025) | Balance (in thousands) | Loan to Value | | :-------------------------------------- | :--------------------- | :------------ | | Flex/Industrial (Cannabis) | $24,475 | 80% | | Industrial loft and Industrial Warehouse (CRE) | $16,311 | 64% | | Vacant Land (CRE) | $15,523 | 64% | | Multi-family (Construction) | $14,996 | 25% | | Mixed Use -retail/office (CRE) | $15,071 | 94% | - Non-interest income decreased by **$318 thousand** to **$1.8 million**, mainly due to decreases in gains on equity securities and BOLI income[168](index=168&type=chunk) - Non-interest expense decreased by **$178 thousand (1.2%)** to **$14.7 million**, driven by lower regulatory assessment charges offset by higher salaries and employee benefits[169](index=169&type=chunk) - The income tax provision shifted to a benefit of **$3.4 million** in Q1 2025 from a **$2.5 million** provision in Q1 2024[170](index=170&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the Company's management of market risk, primarily interest rate risk, through its Asset/Liability Management Committee and provides a quantitative analysis of Net Portfolio Value (NPV) sensitivity to interest rate changes [Management of Market Risk](index=32&type=section&id=Management%20of%20Market%20Risk) This section outlines the company's approach to managing market risk, particularly interest rate risk, through its Asset/Liability Committee - Interest rate risk is a significant market risk due to the longer maturities of assets (mortgage loans) compared to liabilities (deposits)[186](index=186&type=chunk) - The Asset/Liability Committee is responsible for evaluating and managing interest rate risk, with senior management monitoring risk levels regularly[186](index=186&type=chunk) [Quantitative Analysis](index=32&type=section&id=Quantitative%20Analysis) This section provides a quantitative analysis of the company's Net Portfolio Value (NPV) sensitivity to changes in interest rates | Change in Interest Rates | Net Portfolio Value (in thousands) | % Change from PAR | NPV Ratio | | :----------------------- | :--------------------------------- | :---------------- | :-------- | | +100bp | $358,537 | (4.85)% | 10.77% | | PAR | $376,808 | 0.00% | 11.13% | | -100bp | $390,727 | 3.69% | 11.35% | | -200bp | $397,794 | 5.57% | 11.37% | | -300bp | $408,422 | 8.39% | 11.44% | - At March 31, 2025, a **100-basis point** decrease in interest rates would result in a **0.22%** increase in Net Portfolio Value (NPV), indicating a positive sensitivity to falling rates[188](index=188&type=chunk)[189](index=189&type=chunk) - The NPV calculations rely on assumptions about interest rates, loan prepayment rates, and core deposit duration, and may not precisely forecast the effect of interest rate changes[187](index=187&type=chunk)[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures and states that there have been no material changes to internal controls over financial reporting during the quarter - The Company's disclosure controls and procedures were evaluated as effective as of March 31, 2025[191](index=191&type=chunk) - There were no material changes to internal controls over financial reporting during the most recent fiscal quarter[192](index=192&type=chunk) [PART II. OTHER INFORMATION](index=33&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the Company is not involved in any material legal proceedings that would have a material adverse effect on its financial condition or results of operations - As of March 31, 2025, the Company was not involved in any material legal proceedings[194](index=194&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section indicates that there have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K - No material changes to the risk factors were reported since the Annual Report on Form 10-K for the year ended December 31, 2024[195](index=195&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports that there were no unregistered sales of equity securities or use of proceeds during the period - No unregistered sales of equity securities and use of proceeds occurred[196](index=196&type=chunk) [Item 3. Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - Not applicable; no defaults upon senior securities[196](index=196&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the Company - Not applicable; no mine safety disclosures[196](index=196&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report - Not applicable; no other information to report[197](index=197&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including certifications and XBRL documents - Exhibits include CEO and Principal Accounting Officer certifications (31.1, 31.2, 32) and various XBRL taxonomy extension documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[198](index=198&type=chunk) [Signatures](index=35&type=section&id=Signatures) This section contains the signatures of the Company's President and Chief Executive Officer and Chief Financial Officer, certifying the filing of the report - The report is signed by Michael A. Shriner, President and Chief Executive Officer, and Jawad Chaudhry, Chief Financial Officer, on May 7, 2025[202](index=202&type=chunk)

[Press Release Overview](index=1&type=section&id=Press%20Release%20Overview) BCB Bancorp, Inc. announced its first-quarter 2025 results, reporting a net loss of $8.3 million and declaring a quarterly cash dividend of $0.16 per share [Headline and Contact Information](index=1&type=section&id=Headline%20and%20Contact%20Information) BCB Bancorp, Inc. announced its first-quarter 2025 results, reporting a net loss of $8.3 million and declaring a quarterly cash dividend of $0.16 per share - BCB Bancorp, Inc. reported a net loss of **$8.3 million** for Q1 2025[2](index=2&type=chunk) - The company declared a regular quarterly cash dividend of **$0.16 per share**, payable on May 21, 2025, to shareholders of record on May 7, 2025[3](index=3&type=chunk) Q1 2025 Net Income and EPS Comparison | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :----------------------- | :------ | :------ | :------ | | Net Income (Loss) | ($8.3M) | $3.3M | $5.9M | | Diluted EPS | ($0.51) | $0.16 | $0.32 | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Michael Shriner attributed the Q1 loss primarily to a $13.7 million specific reserve for a cannabis sector loan and an additional $3.1 million reserve for the Business Express Loan portfolio, reflecting a proactive approach to risk management [CEO Statement on Q1 Performance and Risk Management](index=1&type=section&id=CEO%20Statement%20on%20Q1%20Performance%20and%20Risk%20Management) CEO Michael Shriner attributed the Q1 loss primarily to a $13.7 million specific reserve for a cannabis sector loan and an additional $3.1 million reserve for the Business Express Loan portfolio, reflecting a proactive approach to risk management. The company remains well-capitalized and is strengthening its credit risk team and oversight - The Q1 loss was primarily driven by a **$13.7 million** specific reserve for a **$34.2 million** loan in the cannabis sector, despite the borrower remaining current[4](index=4&type=chunk) - An additional **$3.1 million** was added to reserves for the discontinued Business Express Loan portfolio due to elevated deterioration and macroeconomic headwinds[4](index=4&type=chunk) - BCB Bank has bolstered its credit risk team with new hires and adjusted risk ratings on loans following a comprehensive portfolio review, emphasizing a disciplined and proactive approach to risk management[4](index=4&type=chunk) [Executive Summary of Key Financials](index=1&type=section&id=Executive%20Summary%20of%20Key%20Financials) The executive summary highlights a net loss for Q1 2025, driven by a significant increase in the provision for credit losses, alongside decreased deposits and mixed profitability ratios [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The executive summary highlights a net loss for Q1 2025, driven by a significant increase in the provision for credit losses. Key metrics show a decrease in total deposits and a mixed performance in profitability ratios, with net interest margin improving while return on assets and equity declined Key Financial Metrics (Q1 2025 vs. Prior Periods) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--------------------------- | :---------- | :---------- | :---------- | | Total Deposits | $2.687B | $2.751B | N/A | | Net Interest Margin | 2.59% | 2.53% | 2.50% | | Total Yield on Interest-Earning Assets | 5.20% | 5.33% | 5.33% | | Total Cost of Interest-Bearing Liabilities | 3.33% | 3.57% | 3.54% | | Efficiency Ratio | 61.6% | 62.1% | 58.8% | | Annualized Return on Average Assets | (0.95)% | 0.36% | 0.61% | | Annualized Return on Average Equity | (10.4)% | 4.0% | 7.5% | | Provision for Credit Losses | $20.8M | $4.2M | $2.1M | - Total deposits decreased by **$64 million** to **$2.687 billion** at March 31, 2025, compared to December 31, 2024[5](index=5&type=chunk) - The provision for credit losses significantly increased to **$20.8 million** in Q1 2025 from **$4.2 million** in Q4 2024 and **$2.1 million** in Q1 2024[5](index=5&type=chunk) [Detailed Financial Review](index=2&type=section&id=Detailed%20Financial%20Review) This section provides a comprehensive review of the company's balance sheet, income statement, and asset quality, highlighting significant changes in assets, liabilities, profitability, and credit risk metrics [Balance Sheet Review](index=2&type=section&id=Balance%20Sheet%20Review) BCB Bancorp's balance sheet at March 31, 2025, showed a decrease in total assets, primarily driven by reductions in net loans and cash equivalents. Deposits also declined, mainly due to a decrease in brokered deposits, while investment securities saw an increase Balance Sheet Changes (Q1 2025 vs. Q4 2024) | Metric | March 31, 2025 | December 31, 2024 | Change ($M) | Change (%) | | :------------------------- | :------------- | :---------------- | :---------- | :--------- | | Total Assets | $3.474B | $3.599B | ($125.3) | -3.5% | | Cash & Cash Equivalents | $252.8M | $317.3M | ($64.5) | -20.3% | | Loans Receivable, Net | $2.918B | $2.996B | ($78.6) | -2.6% | | Investment Securities | $125.9M | $111.2M | $14.7 | 13.2% | | Deposits | $2.687B | $2.751B | ($64.4) | -2.3% | | Debt Obligations | $448.5M | $498.3M | ($49.8) | -10.0% | | Stockholders' Equity | $314.7M | $323.9M | ($9.2) | -2.8% | - The decrease in cash and cash equivalents was primarily due to reducing exposure to wholesale funding by paying down high-cost brokered deposits[7](index=7&type=chunk) - The allowance for credit losses increased by **$16.7 million** to **$51.5 million**, representing **51.6%** of non-accruing loans and **1.73%** of gross loans at March 31, 2025[8](index=8&type=chunk) [First Quarter 2025 Income Statement Review](index=2&type=section&id=First%20Quarter%202025%20Income%20Statement%20Review) The Company reported a net loss of $8.3 million for Q1 2025, a significant decline from net income in prior periods, primarily due to an $18.8 million increase in the provision for loan losses. Net interest income decreased, influenced by lower interest income partially offset by reduced interest expense, while non-interest income and expense saw minor changes Income Statement Highlights (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change ($M) | Change (%) | | :--------------------------- | :---------- | :---------- | :---------- | :--------- | | Net (Loss) Income | ($8.3M) | $5.9M | ($14.2) | -241.9% | | Provision for Loan Losses | $20.8M | $2.1M | $18.7 | 890.5% | | Net Interest Income | $22.0M | $23.1M | ($1.1) | -4.9% | | Interest Income | $44.2M | $49.3M | ($5.1) | -10.3% | | Interest Expense | $22.2M | $26.1M | ($4.0) | -15.1% | | Non-Interest Income | $1.8M | $2.1M | ($0.3) | -15.1% | | Non-Interest Expense | $14.7M | $14.8M | ($0.2) | -1.2% | | Income Tax (Benefit) Provision | ($3.4M) | $2.5M | ($5.8) | -232.0% | - The net interest margin increased to **2.59%** in Q1 2025 from **2.50%** in Q1 2024, driven by a decrease in the cost of interest-bearing liabilities, partially offset by a decrease in the yield on interest-earning assets[17](index=17&type=chunk) - Non-accrual loans significantly increased to **$99.8 million** (**3.36%** of gross loans) at March 31, 2025, from **$44.7 million** (**1.48%** of gross loans) at December 31, 2024[18](index=18&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) Asset quality deteriorated in Q1 2025, marked by a substantial increase in net charge-offs and non-accrual loans. Despite many non-accrual loans being current on payments, management reclassified them due to underlying financial weaknesses, leading to a lower allowance for credit losses as a percentage of non-accrual loans Asset Quality Metrics (Q1 2025 vs. Prior Periods) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--------------------------- | :------------- | :---------------- | :------------- | | Net Charge-Offs | $4.2M | N/A | $1.1M | | Non-Accrual Loans | $99.8M | $44.7M | $22.2M | | Non-Accrual Loans as % of Gross Loans | 3.36% | 1.48% | 0.68% | | Allowance for Credit Losses | $51.5M | $34.8M | $34.6M | | ACL as % of Gross Loans | 1.73% | 1.15% | 1.06% | | ACL as % of Non-Accrual Loans | 51.6% | 77.8% | 155.4% | - More than **60%** of the non-accrual loans are current on payments, but were reclassified due to underlying financial weaknesses beyond payment status[23](index=23&type=chunk) - Management believes the allowance for credit losses on loans was adequate at March 31, 2025, despite the significant increase in non-accrual loans[18](index=18&type=chunk) [About BCB Bancorp, Inc.](index=4&type=section&id=About%20BCB%20Bancorp%2C%20Inc.) BCB Bancorp, Inc., established in 2000, operates BCB Community Bank through 23 New Jersey and four New York branches, offering diverse banking services [Company Overview](index=4&type=section&id=Company%20Overview) BCB Bancorp, Inc., established in 2000 and headquartered in Bayonne, N.J., operates BCB Community Bank, offering a wide range of banking services to businesses and individuals through 23 branch offices in New Jersey and four in New York - BCB Bancorp, Inc. (NASDAQ: BCBP) is the holding company for BCB Community Bank, established in 2000[24](index=24&type=chunk) - The Bank operates **23 branch offices** in New Jersey and **four** in New York, providing loans, deposit products, and retail/commercial banking services[24](index=24&type=chunk) [Forward-Looking Statements & Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This section provides a disclaimer regarding forward-looking statements, emphasizing that actual results may differ materially due to various economic, regulatory, and operational uncertainties [Disclaimer and Key Risks](index=4&type=section&id=Disclaimer%20and%20Key%20Risks) This section provides a disclaimer regarding forward-looking statements, emphasizing that actual results may differ materially from projections due to various uncertainties. Significant risk factors include economic conditions, inflation, loan delinquencies, liquidity management, supply chain disruptions, labor shortages, geopolitical conflicts, changes in interest rates, and regulatory changes - Forward-looking statements are subject to inherent uncertainties, and actual results may differ materially from anticipated results[25](index=25&type=chunk) - Significant risk factors include the impact of global tariffs, higher inflation, general economic and recessionary concerns, which could lead to increased loan delinquencies and reduced financial transactions[26](index=26&type=chunk) - Other risks include managing liquidity and capital, supply chain disruptions, labor shortages, geopolitical conflicts (Ukraine, Middle East), changes in interest rates, real estate values, and expanding regulatory requirements[26](index=26&type=chunk) [Non-GAAP Financial Measures Explanation](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The Company provides supplemental Non-GAAP financial information, such as tangible stockholders' equity and efficiency ratios, to aid analysts and investors in evaluating financial results [Purpose and Utility of Non-GAAP Measures](index=5&type=section&id=Purpose%20and%20Utility%20of%20Non-GAAP%20Measures) The Company provides supplemental Non-GAAP financial information, such as measurements and ratios based on tangible stockholders' equity and efficiency ratios, to help analysts and investors better understand and evaluate its financial results, as these measures are utilized by regulators and market analysts - The press release includes supplemental Non-GAAP information to aid analysts and investors in understanding and evaluating financial results[28](index=28&type=chunk) - Non-GAAP measures provided include those based on tangible stockholders' equity and efficiency ratios, which are used by regulators and market analysts[29](index=29&type=chunk) [Financial Statements and Supplemental Data](index=6&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) This section presents detailed financial statements, including statements of operations, financial condition, average balances, and quarterly operating data, along with reconciliations of non-GAAP measures [Statements of Operations - Three Months Ended](index=6&type=section&id=Statements%20of%20Operations%20-%20Three%20Months%20Ended) The Statements of Operations detail the company's financial performance for the three months ended March 31, 2025, compared to prior quarters. It shows a net loss driven by a substantial increase in the provision for credit losses, despite a decrease in total interest expense Statements of Operations (Three Months Ended) | Metric (In thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------- | :------------- | :---------------- | :------------- | | Total interest and dividend income | $44,192 | $46,653 | $49,285 | | Total interest expense | $22,187 | $24,459 | $26,142 | | Net interest income | $22,005 | $22,194 | $23,143 | | Provision for credit losses | $20,845 | $4,154 | $2,088 | | Total non-interest income | $1,791 | $938 | $2,109 | | Total non-interest expense | $14,660 | $14,367 | $14,838 | | Net (Loss) Income | ($8,324) | $3,272 | $5,866 | | Net (Loss) Income per common share-diluted | ($0.51) | $0.16 | $0.32 | - Provision for credit losses increased by **401.8%** QoQ and **898.3%** YoY, significantly impacting net income[30](index=30&type=chunk) - Net interest income decreased by **0.9%** QoQ and **4.9%** YoY[30](index=30&type=chunk) [Statements of Financial Condition](index=7&type=section&id=Statements%20of%20Financial%20Condition) The Statements of Financial Condition present the company's assets, liabilities, and stockholders' equity at March 31, 2025, compared to previous periods. It shows a decrease in total assets, primarily from cash and loans, and a corresponding decrease in total liabilities, mainly from deposits and FHLB advances Statements of Financial Condition (In Thousands) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------------------------- | :------------- | :---------------- | :------------- | | Total Assets | $3,473,822 | $3,599,118 | $3,849,195 | | Total cash and cash equivalents | $252,750 | $317,282 | $352,448 | | Loans receivable, net | $2,917,610 | $2,996,259 | $3,226,877 | | Total deposits | $2,686,508 | $2,750,858 | $2,991,659 | | FHLB advances | $405,499 | $455,361 | $472,949 | | Total Liabilities | $3,159,100 | $3,275,193 | $3,529,064 | | Total Stockholders' Equity | $314,722 | $323,925 | $320,131 | - Total assets decreased by **3.5%** QoQ and **9.8%** YoY[31](index=31&type=chunk) - Loans receivable, net, decreased by **2.6%** QoQ and **9.6%** YoY[31](index=31&type=chunk) [Average Balances and Yields/Rates](index=8&type=section&id=Average%20Balances%20and%20Yields%2FRates) This section provides a detailed breakdown of average balances, interest earned/paid, and average yields/rates for interest-earning assets and interest-bearing liabilities for the three months ended March 31, 2025, and 2024. It highlights a decrease in the average balance of interest-earning assets and interest-bearing liabilities, alongside a slight increase in net interest margin Average Balances, Interest, and Yields/Rates (Three Months Ended March 31) | Metric | Q1 2025 Average Balance | Q1 2025 Interest Earned/Paid | Q1 2025 Average Yield/Rate | Q1 2024 Average Balance | Q1 2024 Interest Earned/Paid | Q1 2024 Average Yield/Rate | | :--------------------------- | :---------------------- | :--------------------------- | :------------------------- | :---------------------- | :--------------------------- | :------------------------- | | Loans Receivable | $2,994,529 | $38,927 | 5.27% | $3,299,938 | $43,722 | 5.30% | | Total Interest-earning assets | $3,443,542 | $44,192 | 5.20% | $3,699,455 | $49,285 | 5.33% | | Total interest-bearing deposits | $2,212,743 | $16,331 | 2.99% | $2,446,824 | $20,406 | 3.34% | | Total interest-bearing liabilities | $2,701,161 | $22,187 | 3.33% | $2,957,327 | $26,142 | 3.54% | | Net interest income | N/A | $22,005 | N/A | N/A | $23,143 | N/A | | Net interest margin | N/A | N/A | 2.59% | N/A | N/A | 2.50% | - The average balance of interest-earning assets decreased by **$255.9 million** (**6.9%**) YoY, while the average yield decreased by **13 basis points**[14](index=14&type=chunk)[32](index=32&type=chunk) - The average balance of interest-bearing liabilities decreased by **$256.2 million** YoY, and the average rate paid decreased by **21 basis points**[16](index=16&type=chunk)[32](index=32&type=chunk) [Quarterly Financial Condition and Operating Data](index=9&type=section&id=Quarterly%20Financial%20Condition%20and%20Operating%20Data) This section provides a quarterly overview of key financial condition and operating data, illustrating trends in assets, liabilities, equity, income, and expenses over the past five quarters. It highlights the significant increase in provision for credit losses and non-accrual loans in Q1 2025, leading to a net loss and reduced profitability ratios Financial Condition Data by Quarter (In thousands) | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Total assets | $3,473,822 | $3,599,118 | $3,613,770 | $3,793,941 | $3,849,195 | | Deposits | $2,686,508 | $2,750,858 | $2,724,580 | $2,935,239 | $2,991,659 | | Stockholders' equity | $314,722 | $323,925 | $328,113 | $320,732 | $320,131 | | Book value per common share | $16.87 | $17.54 | $17.50 | $17.17 | $17.24 | Operating Data by Quarter (In thousands) | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Net interest income | $22,005 | $22,194 | $23,045 | $23,639 | $23,143 | | Provision for credit losses | $20,845 | $4,154 | $2,890 | $2,438 | $2,088 | | Net (loss) income | ($8,324) | $3,272 | $6,668 | $2,817 | $5,866 | | Net (loss) income per diluted share | ($0.51) | $0.16 | $0.36 | $0.14 | $0.32 | | Common Dividends declared per share | $0.16 | $0.16 | $0.16 | $0.16 | $0.16 | Financial Ratios by Quarter | Ratio | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Return on average assets | (0.95%) | 0.36% | 0.72% | 0.30% | 0.61% | | Return on average stockholders' equity | (10.40%) | 4.04% | 8.29% | 3.52% | 7.46% | | Net interest margin | 2.59% | 2.53% | 2.58% | 2.60% | 2.50% | | Efficiency Ratio | 61.61% | 62.11% | 53.22% | 68.55% | 58.76% | [Asset Quality Ratios by Quarter](index=9&type=section&id=Asset%20Quality%20Ratios%20by%20Quarter) This section provides a quarterly trend of asset quality ratios, showing a significant increase in non-accrual loans and a corresponding decrease in the allowance for credit losses as a percentage of non-accrual loans in Q1 2025 Asset Quality Ratios by Quarter (In thousands, except for ratio %) | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Non-Accrual Loans | $99,833 | $44,708 | $35,330 | $32,448 | $22,241 | | Non-Accrual Loans as a % of Total Loans | 3.36% | 1.48% | 1.13% | 1.01% | 0.68% | | ACL as % of Non-Accrual Loans | 51.6% | 77.8% | 98.2% | 108.6% | 155.4% | | Classified Loans | $251,989 | $152,714 | $98,316 | $87,033 | $97,739 | - Non-Accrual Loans increased by **123.3%** QoQ and **348.0%** YoY[34](index=34&type=chunk) - The Allowance for Credit Losses (ACL) as a percentage of Non-Accrual Loans decreased significantly from **77.8%** in Q4 2024 to **51.6%** in Q1 2025[34](index=34&type=chunk) [Recorded Investment in Loans Receivable by Quarter](index=10&type=section&id=Recorded%20Investment%20in%20Loans%20Receivable%20by%20Quarter) This table details the recorded investment in loans receivable by category across five quarters, showing a general decline in most loan types, particularly commercial and multi-family loans, and construction loans, from Q1 2024 to Q1 2025 Recorded Investment in Loans Receivable by Quarter (In thousands) | Loan Type | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Residential one-to-four family | $232,456 | $239,870 | $241,050 | $242,706 | $244,762 | | Commercial and multi-family | $2,221,218 | $2,246,677 | $2,296,886 | $2,340,385 | $2,392,970 | | Construction | $118,779 | $135,434 | $146,471 | $173,207 | $180,975 | | Commercial business | $330,358 | $342,799 | $371,365 | $375,355 | $378,073 | | Home equity | $66,479 | $66,769 | $67,566 | $66,843 | $65,518 | | Consumer | $2,271 | $2,235 | $2,309 | $2,053 | $2,847 | | Total loans, net | $2,917,610 | $2,996,259 | $3,087,914 | $3,161,925 | $3,226,877 | - Commercial and multi-family loans, the largest category, decreased by **$25.4 million** QoQ and **$171.7 million** YoY[37](index=37&type=chunk) - Construction loans decreased by **$16.7 million** QoQ and **$62.2 million** YoY[37](index=37&type=chunk) [Non-Accruing Loans in Portfolio by Quarter](index=10&type=section&id=Non-Accruing%20Loans%20in%20Portfolio%20by%20Quarter) This table provides a quarterly breakdown of non-accruing loans by portfolio type, showing a significant increase in non-accruing commercial and multi-family loans in Q1 2025, which is the primary driver of the overall rise in non-accrual loans Non-Accruing Loans in Portfolio by Quarter (In thousands) | Loan Type | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Residential one-to-four family | $1,138 | $1,387 | $410 | $350 | $429 | | Commercial and multi-family | $89,296 | $32,974 | $27,693 | $27,796 | $12,627 | | Construction | $586 | $586 | $586 | $586 | $3,225 | | Commercial business | $8,374 | $9,530 | $6,498 | $3,673 | $5,916 | | Home equity | $439 | $231 | $123 | $434 | $44 | | Consumer | — | — | $20 | — | — | | Total | $99,833 | $44,708 | $35,330 | $32,448 | $22,241 | - Non-accruing commercial and multi-family loans increased by **$56.3 million** QoQ, representing the largest component of the overall increase in non-accrual loans[37](index=37&type=chunk) [Distribution of Deposits by Quarter](index=10&type=section&id=Distribution%20of%20Deposits%20by%20Quarter) This table illustrates the quarterly distribution of deposits by type, showing a decrease in total deposits from Q4 2024 to Q1 2025, primarily driven by a reduction in certificates of deposit, partially offset by an increase in non-interest bearing demand deposits Distribution of Deposits by Quarter (In thousands) | Deposit Type | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Non-Interest Bearing Demand | $542,620 | $520,387 | $528,089 | $523,816 | $531,112 | | Interest Bearing Demand | $537,468 | $553,731 | $527,862 | $549,239 | $552,295 | | Money Market | $405,793 | $395,004 | $366,655 | $371,689 | $361,791 | | Savings and Club | $254,732 | $252,491 | $255,115 | $258,680 | $272,051 | | Certificates of Deposit | $945,895 | $1,029,245 | $1,046,859 | $1,231,815 | $1,274,410 | | Total Deposits | $2,686,508 | $2,750,858 | $2,724,580 | $2,935,239 | $2,991,659 | - Certificates of Deposit decreased by **$83.3 million** QoQ and **$328.5 million** YoY[37](index=37&type=chunk) - Non-Interest Bearing Demand deposits increased by **$22.2 million** QoQ[37](index=37&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures by Quarter](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures%20by%20Quarter) This section provides reconciliations for non-GAAP financial measures, specifically tangible book value per share and the efficiency ratio, across five quarters. It shows a decrease in tangible book value per common share and a slight improvement in the efficiency ratio in Q1 2025 compared to the prior quarter Tangible Book Value per Share Reconciliation (In thousands, except per share amounts) | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Total Stockholders' Equity | $314,722 | $323,925 | $328,113 | $320,732 | $320,131 | | Less: goodwill | $5,253 | $5,253 | $5,253 | $5,253 | $5,253 | | Less: preferred stock | $25,243 | $24,723 | $29,763 | $28,403 | $27,733 | | Total tangible common stockholders' equity | $284,226 | $293,949 | $293,097 | $287,076 | $287,145 | | Shares common shares outstanding | 17,163 | 17,063 | 17,048 | 17,029 | 16,957 | | Book value per common share | $16.87 | $17.54 | $17.50 | $17.17 | $17.24 | | Tangible book value per common share | $16.56 | $17.23 | $17.19 | $16.86 | $16.93 | Efficiency Ratios Reconciliation (In thousands, except for ratio %) | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Net interest income | $22,005 | $22,194 | $23,045 | $23,639 | $23,143 | | Non-interest income (loss) | $1,791 | $938 | $3,127 | ($3,234) | $2,109 | | Total income | $23,796 | $23,132 | $26,172 | $20,405 | $25,252 | | Non-interest expense | $14,660 | $14,367 | $13,929 | $13,987 | $14,838 | | Efficiency Ratio | 61.61% | 62.11% | 53.22% | 68.55% | 58.76% | - Tangible book value per common share decreased from **$17.23** in Q4 2024 to **$16.56** in Q1 2025[38](index=38&type=chunk)

Financial Performance - BCB Bancorp reported a quarterly loss of $0.51 per share, significantly missing the Zacks Consensus Estimate of $0.23, and down from earnings of $0.32 per share a year ago, representing an earnings surprise of -321.74% [1] - The company posted revenues of $23.8 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.55%, and down from $25.25 million in the same quarter last year [2] - Over the last four quarters, BCB Bancorp has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - BCB Bancorp shares have declined approximately 20.6% since the beginning of the year, compared to a decline of 12.3% for the S&P 500 [3] - The current Zacks Rank for BCB Bancorp is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $25.19 million, and for the current fiscal year, it is $1.15 on revenues of $103.85 million [7] - The estimate revisions trend for BCB Bancorp is mixed, and changes in earnings expectations may occur following the recent earnings report [6] Industry Context - The Banks - Northeast industry, to which BCB Bancorp belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Tompkins Financial, is expected to report quarterly earnings of $1.30 per share, reflecting a year-over-year change of +10.2% [9]

Core Viewpoint - BCB Bancorp, Inc. reported a net loss of $8.3 million for Q1 2025, a significant decline from net income of $5.9 million in Q1 2024, primarily due to increased provisions for loan losses and specific reserves related to a cannabis sector loan [1][13][18]. Financial Performance - The net loss per diluted share for Q1 2025 was ($0.51), compared to earnings of $0.32 in Q1 2024 [1][32]. - Net interest income decreased by $1.1 million, or 4.9%, to $22.0 million in Q1 2025 from $23.1 million in Q1 2024 [13][15]. - The provision for credit losses was $20.8 million in Q1 2025, a substantial increase from $2.1 million in Q1 2024 [18][19]. Balance Sheet Overview - Total assets decreased by $125.3 million, or 3.5%, to $3.474 billion as of March 31, 2025, from $3.599 billion at the end of 2024 [5][12]. - Total deposits were $2.687 billion at March 31, 2025, down from $2.751 billion at December 31, 2024, representing a decrease of 2.3% [6][10]. - Total loans receivable, net of allowance for credit losses, decreased by 2.6% to $2.918 billion as of March 31, 2025 [8][12]. Asset Quality - Non-accrual loans totaled $99.8 million, or 3.36% of gross loans, at March 31, 2025, compared to $22.2 million, or 0.68%, at March 31, 2024 [17][23]. - The allowance for credit losses was $51.5 million, or 1.73% of gross loans, as of March 31, 2025, up from $34.6 million, or 1.06%, at the same time last year [18][23]. Dividend Declaration - The Board of Directors declared a regular quarterly cash dividend of $0.16 per share, payable on May 21, 2025, to shareholders of record on May 7, 2025 [2].

Financial Position - Total assets decreased by $233.3 million, or 6.1 percent, to $3.599 billion at December 31, 2024, from $3.832 billion at December 31, 2023[237]. - Total cash and cash equivalents increased by $37.8 million, or 13.5 percent, to $317.3 million at December 31, 2024, from $279.5 million at December 31, 2023[238]. - Loans receivable, net, decreased by $283.4 million, or 8.6 percent, to $2.996 billion at December 31, 2024, from $3.280 billion at December 31, 2023[239]. - Total investment securities increased by $14.3 million, or 14.8 percent, to $111.2 million at December 31, 2024, from $96.9 million at December 31, 2023[240]. - Deposits decreased by $228.2 million, or 7.7 percent, to $2.751 billion at December 31, 2024, from $2.979 billion at December 31, 2023[241]. - Stockholders' equity increased by $9.9 million, or 3.1 percent, to $323.9 million at December 31, 2024, from $314.1 million at December 31, 2023[243]. - The Company had total outstanding borrowings of $498.3 million at December 31, 2024, compared to $510.4 million at December 31, 2023[264]. - Total liabilities decreased to $3,275,193,000 in 2024 from $3,518,342,000 in 2023, a decline of approximately 6.9%[298]. - The total stockholders' equity at the end of 2024 was $323,925,000, an increase from $314,055,000 in 2023[304]. Income and Expenses - Net income decreased by $10.9 million, or 36.8 percent, to $18.6 million for the twelve months of 2024 from $29.5 million for 2023[252]. - Net interest income for the year ended December 31, 2024, was $92.021 million, compared to $104.062 million for the year ended December 31, 2023[247]. - Non-interest income decreased by $1.1 million to $2.9 million for 2024, primarily due to losses on sales of loans[258]. - Non-interest expense decreased by $3.5 million, or 5.7 percent, to $57.1 million for 2024, driven by reductions in salaries and employee benefits[259]. - The income tax provision decreased by $4.3 million, or 36.6 percent, to $7.6 million for 2024 due to reduced taxable income[260]. - Net interest income after provision for credit losses was $80,451,917 for 2024, down from $95,581,117 in 2023, indicating a decrease of 15.8%[300]. - Total non-interest income for the year was $2,940,404, compared to $881,595 in 2023, representing a significant increase of 233.5%[300]. - Non-interest expense for the year was $101,988,884, compared to $29,817,496 in 2023, reflecting an increase of 241.5%[300]. Credit Losses and Provisions - The allowance for credit losses on loans increased by $1.2 million to $34.8 million, or 1.15 percent of gross loans, at December 31, 2024[239]. - The provision for credit losses was $11.6 million for 2024, compared to $6.1 million for 2023, with net charge-offs increasing to $10.4 million[257]. - The allowance for credit losses increased to $34,789,000 in 2024 from $33,608,000 in 2023, indicating a rise of about 3.5%[298]. - The charge-offs for the year ended December 31, 2024, totaled $10,835,000, compared to $805,000 in the previous year[381]. - The provision for credit losses for the year ended December 31, 2024, was $11,570,000, reflecting a significant increase from the previous year's provision of $6,104,000[382]. Interest Income and Expenses - Net interest margin decreased to 2.55 percent for the year ended December 31, 2024, from 2.85 percent for the year ended December 31, 2023[247]. - Interest income increased by $5.6 million, or 3.0 percent, to $194.0 million for 2024, driven by a 22 basis points increase in yield on interest-earning assets[254]. - Interest expense increased by $17.7 million, or 21.0 percent, to $102.0 million for 2024, primarily due to a 64 basis points increase in the average rate on interest-bearing liabilities[255]. Capital and Ratios - The Company’s Tier 2 capital credit related to the Old Notes started to amortize as of August 1, 2023[419]. - The Bank's Community Bank Leverage Ratio was 10.03% as of December 31, 2024, exceeding the minimum requirement of 9%[428]. - Total Capital to Risk-Weighted Assets ratio for the Company was 12.89% as of December 31, 2024, above the required 10%[430]. - The Tier 1 Capital to Risk-Weighted Assets ratio was 10.52% as of December 31, 2024, exceeding the minimum requirement of 6%[430]. - The Bank was categorized as "well-capitalized" under the regulatory framework for prompt corrective action as of December 31, 2024[431]. Loans and Lending Activity - The Bank's lending activity is primarily concentrated in loans collateralized by real estate in New Jersey and the New York metropolitan area, exposing it to credit risk related to the real estate market[323]. - Total loans as of December 31, 2024, amounted to $3,033,784,000, a decrease from $3,317,402,000 in 2023, representing a decline of approximately 8.5%[406]. - The total loans receivable as of December 31, 2024, was $3.03 billion, with $76.7 million past due[394]. - The total amount of certificates of deposit as of December 31, 2024, was $1,029,245,000, down from $1,222,697,000 in 2023, showing a decrease of approximately 15.8%[414]. - The total home equity loans as of December 31, 2024, were $66,769,000, compared to $66,331,000 in 2023, showing a slight increase[406]. Future Outlook and Strategic Plans - Future outlook includes plans for market expansion and new product development to enhance revenue streams[300]. Accounting and Reporting - The internal control over financial reporting was found to be effective as of December 31, 2024, based on PCAOB standards[292]. - The Company changed its accounting method for credit losses as of January 1, 2023, adopting ASC 326[278]. - The Company adopted ASU 2016-13 on January 1, 2023, resulting in a $4.2 million decrease in allowance for credit losses on loans and a total cumulative effect adjustment of $2.9 million[355]. - The Company is currently evaluating the impact of new accounting standards updates on its disclosures, including ASU 2023-09 and ASU 2023-07[352][353].