BCB Bancorp(BCBP) - 2025 Q2 - Quarterly Results

Executive Summary 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 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 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] - The company is aggressively addressing asset quality challenges and maintaining discipline in booking loan loss provisioning expenses to support reserves[5] - While credit actions have depressed short-term profitability, the medium to long-term outlook for the Bank remains positive[5] Financial Performance - Quarterly Review 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 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] Net Interest Income and Margin 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] Non-Interest Income 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] Non-Interest Expense 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 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 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) 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] Net Interest Income and Margin 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] Non-Interest Income 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] Non-Interest Expense 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) 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] Balance Sheet Review This section examines the company's financial position, detailing changes in assets, liabilities, and stockholders' equity over the period Assets 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] - Loans receivable, net, decreased by $135.8 million, with significant decreases in commercial real estate, multi-family, construction, and residential loans[9] Liabilities 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] - 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] Stockholders' Equity 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] Asset Quality 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 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] Allowance for Credit Losses 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] Cannabis Loan Portfolio 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] - 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] - The portfolio has some larger relationships that could require material reserves in future periods if operating headwinds persist[25] Dividend Declaration 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] - The dividend is payable on August 25, 2025, to common shareholders of record on August 11, 2025[3] Company Overview and Disclosures 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. 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] - The Bank operates 23 branch offices in New Jersey and 4 in New York[31] - It provides a wide range of loans, deposit products, and retail and commercial banking services to businesses and individuals[31] Forward-Looking Statements 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] - 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] - 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] Explanation of Non-GAAP Financial Measures 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] - Management believes this information helps analysts and investors better understand and evaluate the Company's financial results[35] - Measures like tangible stockholders' equity and efficiency ratios are provided as they are utilized by regulators and market analysts[36] Detailed Financial Statements and Data 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 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 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 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 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 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 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 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 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% |