BCB Bancorp(US:BCBP)2025-11-05 15:00Financial Position - As of September 30, 2025, the company reported total assets of $3.353 billion, a decrease of $246.0 million or 6.8% from $3.599 billion at December 31, 2024[167]. - Total cash and cash equivalents decreased by $67.7 million or 21.3% to $249.6 million at September 30, 2025, primarily due to a reduction in wholesale funding[168]. - Loans receivable, net, decreased by $207.3 million or 6.9% to $2.789 billion at September 30, 2025, with significant declines in commercial real estate and multi-family loans[169]. - Deposits decreased by $63.5 million or 2.3% to $2.687 billion at September 30, 2025, with notable declines in brokered deposits and transaction accounts[171]. - Stockholders' equity decreased by $5.5 million or 1.7% to $318.5 million at September 30, 2025, primarily due to a decrease in retained earnings[174]. - The Company had total outstanding borrowings of $323.9 million as of September 30, 2025, down from $498.3 million at December 31, 2024[198]. - As of September 30, 2025, the Company had the ability to obtain additional funding of $200.3 million from the FHLB and $223.3 million from the Federal Reserve Bank Discount Window[199]. Credit Quality - The allowance for credit losses increased by $3.0 million to $37.8 million, representing 40.4% of non-accruing loans and 1.34% of gross loans at September 30, 2025[169]. - The allowance for credit losses on loans was $37.8 million, or 1.34% of gross loans, at September 30, 2025, up from $34.8 million, or 1.15%, at December 31, 2024[184]. - The company established a $13.7 million specific reserve related to the cannabis sector and increased reserves for the discontinued Business Express Loan portfolio by $3.1 million during the first quarter of 2025[163]. - Net charge-offs for Q3 2025 were $16.9 million, significantly higher than $3.4 million in Q3 2024, largely due to a $12.7 million charge-off related to a cannabis-related relationship[184]. - Net charge-offs increased significantly to $26.8 million from $6.3 million in the same period of 2024, with a provision for credit losses rising to $29.8 million from $7.4 million[192]. Income and Expenses - Net income for Q3 2025 was $4.3 million, down from $6.7 million in Q3 2024, primarily due to $1.2 million more in credit loss provisioning and $2.6 million increase in non-interest expenses[180]. - Interest income decreased by $5.6 million, or 11.5%, to $43.0 million in Q3 2025 from $48.6 million in Q3 2024, with average interest-earning assets down by $313.5 million, or 8.8%[181]. - Non-interest income decreased by $382 thousand to $2.7 million in Q3 2025, primarily due to $782 thousand less in realized gains on equity investments[186]. - Non-interest expense increased by $2.6 million, or 19.0%, to $16.6 million in Q3 2025, driven by higher salaries, employee benefits, and regulatory assessment fees[187]. - For the first nine months of 2025, net income decreased by $15.8 million to a loss of $498 thousand, primarily due to higher provisioning for loan loss expenses and increased non-interest expenses[189]. - Net interest income decreased by $1.0 million, with interest income down $16.9 million (11.5%) to $130.4 million for the first nine months of 2025 compared to $147.4 million in 2024[190]. - Non-interest expense increased by $3.7 million (8.8%) to $46.5 million, primarily due to higher salaries and employee benefits[194]. - The income tax provision decreased by $1.1 million to $1.5 million in Q3 2025, with an effective tax rate of 26.6% compared to 28.7% in Q3 2024[188]. - The income tax provision decreased by $6.7 million, resulting in an income tax benefit of $386 thousand for the first nine months of 2025[195]. Interest Rate Risk - The weighted average interest rate of FHLB advances was 4.09% at September 30, 2025, down from 4.35% at December 31, 2024[172]. - As of September 30, 2025, a 100-basis point decrease in interest rates would result in a 0.05% increase in NPV, compared to a 0.27% increase at December 31, 2024[213]. - The net portfolio value (NPV) at a 100-basis point increase is $386,694, reflecting a decrease of $14,452 or 3.60% from PAR[212]. - The NPV ratio as a percentage of assets is 11.97% at a 100-basis point increase, down from 12.22% at PAR[212]. - A 200-basis point decrease in interest rates would yield an NPV of $410,813, an increase of $9,667 or 2.41% from PAR[212]. - The NPV at a 300-basis point decrease is $417,460, showing an increase of $16,314 or 4.07% from PAR[212]. - The methodology for measuring interest rate risk has inherent shortcomings, as it assumes constant asset and liability composition over the measurement period[214]. - The NPV table does not provide a precise forecast of the impact of market interest rate changes on net interest income[214]. - The company’s interest-sensitive assets and liabilities are assumed to respond uniformly to interest rate changes, which may not reflect actual market behavior[214]. - The NPV as a percentage of assets shows slight fluctuations with changes in interest rates, indicating sensitivity to market conditions[212]. - The company’s interest rate risk exposure is indicated at specific points in time but may differ from actual results[214]. Capital Ratios - The Community Bank Leverage Ratio was 10.60% as of September 30, 2025, exceeding the minimum requirement of 9%[206]. - Total Capital to Risk-Weighted Assets was 13.45% as of September 30, 2025, above the regulatory requirement of 8%[208].