BCB Bancorp(BCBP) - 2024 Q1 - Quarterly Report

Financial Position - Total assets increased by $16.8 million, or 0.4%, to $3.849 billion at March 31, 2024, from $3.832 billion at December 31, 2023[105] - Total cash and cash equivalents increased by $72.9 million, or 26.1%, to $352.4 million at March 31, 2024, from $279.5 million at December 31, 2023[105] - Loans receivable, net, decreased by $52.8 million, or 1.6%, to $3.227 billion at March 31, 2024, from $3.280 billion at December 31, 2023[105] - Deposits increased by $12.6 million, or 0.4%, to $2.992 billion at March 31, 2024, from $2.979 billion at December 31, 2023[105] - Stockholders' equity increased by $6.1 million, or 1.9%, to $320.1 million at March 31, 2024, from $314.1 million at December 31, 2023[105] Income and Expenses - Net interest income for the three months ended March 31, 2024, was $23.143 million, compared to $27.471 million for the same period in 2023[108] - Net income for Q1 2024 was $5.9 million, down from $8.1 million in Q1 2023, primarily due to lower net interest income and higher credit loss provisioning[110] - Net interest income decreased by $4.3 million, or 15.8%, to $23.1 million in Q1 2024 from $27.5 million in Q1 2023, driven by higher interest expenses[110] - Interest income increased by $6.9 million, or 16.4%, to $49.3 million in Q1 2024, with an average balance of interest-earning assets rising by $216.1 million, or 6.2%[110] - Non-interest income rose by $3.8 million to $2.1 million in Q1 2024, mainly due to gains on equity securities[110] - Non-interest expenses increased by $984 thousand, or 7.1%, to $14.8 million in Q1 2024, attributed to higher regulatory assessment charges[110] Credit and Risk Management - The allowance for credit losses increased by $955 thousand to $34.6 million, or 155.4% of non-accruing loans, at March 31, 2024[105] - The provision for credit losses was $2.1 million in Q1 2024, compared to $622,000 in Q1 2023, indicating increased credit risk[110] Capital and Ratios - As of March 31, 2024, the Company had total outstanding borrowings of $510.6 million, slightly up from $510.4 million at December 31, 2023[111] - The Company had a Community Bank Leverage Ratio of 9.33% as of March 31, 2024, exceeding the minimum requirement of 9%[114] - Total capital to risk-weighted assets ratio was 11.56% as of March 31, 2024, above the regulatory requirement of 8%[116] Interest Rate Sensitivity - As of March 31, 2024, a 100-basis point decrease in interest rates would result in a 0.58% increase in NPV, compared to a 0.66% increase as of December 31, 2023[119] - The NPV ratio at a -100 basis point scenario is 10.59%, reflecting a $29,296 increase in net portfolio value[120] - The NPV ratio at a -200 basis point scenario is 11.03%, indicating a $54,373 increase in net portfolio value[120] - The NPV ratio at a -300 basis point scenario is 11.21%, showing a $69,984 increase in net portfolio value[120] - The company experienced an 8.56% decrease in NPV from PAR at a +100 basis point scenario[120] - The NPV table provides an indication of interest rate risk exposure but does not precisely forecast the effect of market interest rate changes on net interest income[119] Internal Controls and Procedures - The company has evaluated the effectiveness of its disclosure controls and procedures, concluding they are effective as of the end of the reporting period[119] - There were no changes to internal controls over financial reporting that materially affected the company's reporting during the most recent fiscal quarter[119] - The company assumes that the composition of interest-sensitive assets and liabilities remains constant over the measured period[119]