BCB Bancorp(BCBP) - 2025 Q4 - Annual Results

Financial Performance - BCB Bancorp, Inc. reported a net loss of $12.0 million for Q4 2025, compared to a net income of $4.3 million in Q3 2025 and $3.3 million in Q4 2024, resulting in a loss per diluted share of ($0.73) [2] - The annualized return on average assets ratio for Q4 2025 was (1.44)%, compared to 0.50% in Q3 2025 and 0.36% in Q4 2024 [6] - Net loss for Q4 2025 was $12,029, a decline of 382.2% from Q3 2025 and 467.6% from Q4 2024 [37] - Net loss available to common stockholders for the full year 2025 was $14,456, a decrease of 186.1% from 2024 [38] Asset and Liability Management - Total assets decreased by $319.7 million, or 8.9%, to $3.279 billion at December 31, 2025, from $3.599 billion at December 31, 2024 [7] - Total liabilities decreased from $3,408,836 thousand in 2024 to $3,102,130 thousand in 2025, a reduction of approximately 9.0% [42] - Stockholders' equity decreased by $19.6 million, or 6.1%, to $304.3 million at December 31, 2025, primarily due to a net loss and write-downs [13] - Total stockholders' equity decreased to $304,284 thousand in Q4 2025 from $323,925 thousand in Q4 2024, a decline of 6.1% year-over-year [48] Loan and Deposit Trends - Total loans receivable, net of the allowance for credit losses, decreased by $305.2 million, or 10.2%, to $2.691 billion at December 31, 2025, from $2.996 billion at December 31, 2024 [9] - Total deposits decreased by $77.3 million, or 2.8%, to $2.674 billion at December 31, 2025, from $2.751 billion at December 31, 2024 [11] - Non-accrual loans totaled $63.3 million, or 2.32% of gross loans, at December 31, 2025, compared to $44.7 million, or 1.48% of gross loans, at December 31, 2024 [18] - Non-accruing loans in the portfolio totaled $63,255 thousand in Q4 2025, down from $93,517 thousand in Q3 2025, indicating a reduction of 32.4% quarter-over-quarter [47] Income and Expense Analysis - Non-interest expense increased by $17.0 million, or 118.5%, to $31.4 million for Q4 2025, driven by REO property expenses related to the cannabis-related write-down [20] - Non-interest income increased by $5.6 million to $8.6 million for the twelve months ended December 31, 2025, up from $2.9 million in 2024, despite a loss on sale of loans of $5.3 million in 2024 [26] - Total non-interest income for the full year 2025 reached $8,555, a substantial increase of 191.0% from 2024 [38] - Non-interest expense rose by $20.8 million, or 36.3%, to $77.9 million for the twelve months ended December 31, 2025, primarily due to a one-time $15.1 million expense related to cannabis property and a $3.2 million increase in salaries and employee benefits [27] Credit Loss Provisions - The provision for credit losses was $12.2 million in Q4 2025, compared to $4.1 million in Q3 2025 and $4.2 million in Q4 2024 [6] - The Company reported $43.1 million in net charge-offs for the twelve months ended December 31, 2025, compared to $10.4 million for the same period in 2024, with a significant portion attributed to a $12.7 million charge-off related to a cannabis-related relationship [25] - Provision for credit losses surged to $12,195 in Q4 2025, representing a 198.9% increase from Q3 2025 and a 193.6% increase from Q4 2024 [37] - The allowance for credit losses was $33.7 million, or 1.24% of gross loans, at December 31, 2025, compared to $34.8 million, or 1.15%, at December 31, 2024, with the allowance covering 53.3% of non-accrual loans [30] Operational Efficiency - The efficiency ratio for Q4 2025 was 119.95%, significantly higher than 62.63% in Q3 2025, indicating increased operational costs relative to income [44] - The efficiency ratio for Q4 2025 was reported at 119.95%, a substantial increase from 62.11% in Q4 2024, indicating a decline in operational efficiency [48] Market and Economic Outlook - Forward-looking statements indicate potential impacts from economic factors such as inflation, loan delinquencies, and changes in market conditions that could affect future performance [33] - The Company emphasizes the importance of non-GAAP financial measures for better understanding and evaluation of financial results [35]