BCB Bancorp(BCBP) - 2024 Q4 - Annual Report

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].