BCB Bancorp, Inc. Earns $2.8 Million in Second Quarter 2024; Reports $0.14 EPS and Declares Quarterly Cash Dividend of $0.16 Per Share

Rhea-AI Summary

BCB Bancorp, Inc. (NASDAQ: BCBP) reported net income of $2.8 million for Q2 2024, down from $5.9 million in Q1 2024 and $8.6 million in Q2 2023. Earnings per diluted share were $0.14, compared to $0.32 in Q1 2024 and $0.50 in Q2 2023. The Bank agreed to sell a $38.4 million loan pool, resulting in a $4.6 million pre-tax loss. Without this and other one-time items, Q2 net income would have been $6.4 million with EPS of $0.35. The Board declared a quarterly cash dividend of $0.16 per share. Key metrics include:

• Total deposits: $2.935 billion
• Net interest margin: 2.60%
• Efficiency ratio: 68.55%
• Return on average assets: 0.30%
• Return on average equity: 3.52%

Positive

• Declared quarterly cash dividend of $0.16 per share
• Net interest margin improved to 2.60% from 2.50% in Q1 2024
• Total yield on interest-earning assets increased to 5.43% from 5.33% in Q1 2024
• Allowance for credit losses increased to 108.6% of non-accruing loans from 155.4% in Q1 2024

Negative

• Net income decreased to $2.8 million from $5.9 million in Q1 2024 and $8.6 million in Q2 2023
• Earnings per diluted share dropped to $0.14 from $0.32 in Q1 2024 and $0.50 in Q2 2023
• Recorded a pre-tax loss of $4.6 million on loan sale agreement
• Efficiency ratio worsened to 68.55% from 58.76% in Q1 2024
• Return on average assets decreased to 0.30% from 0.61% in Q1 2024
• Return on average equity declined to 3.52% from 7.46% in Q1 2024
• Non-accrual loans increased to $32.4 million from $22.2 million in Q1 2024
• Total loans receivable decreased by 2.7% year-over-year

Insights

Financial Analyst

BCB Bancorp, Inc. reported net income of $2.8 million for the second quarter of 2024, a significant drop from $5.9 million in the previous quarter and $8.6 million in the same quarter last year. The earnings per share (EPS) also saw a decline to $0.14 compared to $0.32 in Q1 2024 and $0.50 in Q2 2023.

The primary driver for the decline in net income was the $4.6 million pre-tax loss from moving a pool of commercial real estate and multifamily loans to the held-for-sale category. Although the company earned a stable interest income, the substantial increase in interest expense, from $20.2 million to $25.8 million, impacted the net interest margin, which fell to 2.60% from 2.92% in Q2 2023.

Despite the fall in earnings, BCB's Net interest margin slightly improved from the first quarter, indicating some stabilization in interest income versus interest cost. On the positive side, the company maintains strong liquidity, with cash and cash equivalents increasing by $47.3 million. However, the decrease in total deposits to $2.935 billion poses a concern for long-term growth, especially when coupled with a declining loan book.

Market Research Analyst

The decision to sell a pool of commercial real estate and multifamily loans and the subsequent pre-tax loss of $4.6 million reflects a strategic shift to bolster liquidity amidst an uncertain economic climate. While this move did result in short-term financial pain, it's intended to position BCB better over the long term. This is evident from the company's focus on enhancing liquidity, demonstrated by the 16.9% increase in cash and cash equivalents.

However, the rise in non-accrual loans to $32.4 million from $5.7 million year over year indicates increasing credit risk within the loan portfolio. The provision for credit losses also increased, signaling cautious risk management practices. Investors should be aware that while these steps might stabilize the bank's cash flow, they indicate a cautious approach towards potential loan defaults, which might not immediately appeal to those seeking high returns.

The declared dividend of $0.16 per share is a positive sign, showcasing the bank's commitment to returning value to shareholders despite the earnings drop. Yet, it's critical for investors to monitor the efficiency ratio, which has worsened to 68.55% from 52.32% in the same quarter last year, indicating higher operational costs relative to income.

BAYONNE, N.J., July 19, 2024 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $2.8 million for the second quarter of 2024, compared to $5.9 million in the first quarter of 2024, and $8.6 million for the second quarter of 2023. Earnings per diluted share for the second quarter of 2024 were $0.14, compared to $0.32 in the preceding quarter and $0.50 in the second quarter of 2023.

During the second quarter, the Bank agreed to sell a pool of its commercial real estate and multifamily loans with a total balance of $38.4 million as of June 30, 2024. The Bank expects to consummate the loan sale during the third quarter. As a result, the Bank recorded a pre-tax loss of $4.6 million as the loans were moved to held for sale from the held for investment category. Additionally, during the second quarter, the Bank sold a non-performing loan that resulted in a pre-tax loss of $288 thousand, and recorded unrealized losses of $222 thousand on its equity securities. Without giving effect to the aforementioned transactions and the unrealized losses on equity securities, the Company’s second quarter net income and earnings per diluted share were $6.4 million and $0.35, respectively.

The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on August 16, 2024 to common shareholders of record on August 2, 2024.

“At BCB Community Bank, we remain disciplined and committed to executing our Strategic Plan that will continue to strengthen our balance sheet by enhancing our liquidity and capital positions while also delivering consistent and improving profitability. The Bank was able to enter into an agreement to sell a small portfolio of loans at an attractive price that added liquidity without diluting the Bank’s capital ratios. We are prepared and remain well-positioned to navigate through the current economic environment,” stated Michael Shriner, President and Chief Executive Officer.

Executive Summary

• Total deposits were $2.935 billion at June 30, 2024 compared to $2.992 billion at March 31, 2024.
• Net interest margin was 2.60 percent for the second quarter of 2024, compared to 2.50 percent for the first quarter of 2024, and 2.92 percent for the second quarter of 2023.
  • Total yield on interest-earning assets was 5.43 percent for the second quarter of 2024 compared to 5.33 percent for the first quarter of 2024, and 5.11 percent for the second quarter of 2023.
  • Total cost of interest-bearing liabilities was 3.56 percent for the second quarter of 2024, compared to 3.54 percent for the first quarter of 2024, and 2.80 percent for the second quarter of 2023.
• The efficiency ratio for the second quarter was 68.55 percent compared to 58.76 percent in the prior quarter, and 52.32 percent in the second quarter of 2023.
• The annualized return on average assets ratio for the second quarter was 0.30 percent, compared to 0.61 percent in the prior quarter, and 0.90 percent in the second quarter of 2023.
• The annualized return on average equity ratio for the second quarter was 3.52 percent, compared to 7.46 percent in the prior quarter, and 11.57 percent in the second quarter of 2023.
• The provision for credit losses was $2.4 million in the second quarter of 2024 compared to $2.1 million for the first quarter of 2024, and $1.4 million for the second quarter of 2023.
• The allowance for credit losses (“ACL”) as a percentage of non-accrual loans was 108.6 percent at June 30, 2024 compared to 155.4 percent for the prior quarter-end and 530.3 percent at June 30, 2023. Total non-accrual loans were $32.4 million at June 30, 2024, $22.2 million at March 31, 2024 and $5.7 million at June 30, 2023.
• Total loans receivable, net of the allowance for credit losses, of $3.162 billion at June 30, 2024, decreased 2.7 percent from $3.320 billion at June 30, 2023.

Balance Sheet Review

Total assets decreased by $38.5 million, or 1.0 percent, to $3.794 billion at June 30, 2024, from $3.832 billion at December 31, 2023. The decrease in total assets was mainly related to a decrease in loans, offset, somewhat, by an increase in cash and cash equivalents.

Total cash and cash equivalents increased by $47.3 million, or 16.9 percent, to $326.9 million at June 30, 2024, from $279.5 million at December 31, 2023. The increase was primarily cash flows from loan payoffs/paydowns that were not redeployed.

Loans receivable, net, decreased by $117.8 million, or 3.6 percent, to $3.162 billion at June 30, 2024, from $3.280 billion at December 31, 2023. Total loan decreases during the period included decreases of $93.7 million in commercial real estate and multi-family loans and $19. 6 million in construction loans. 1-4 family residential loans also declined $5.6 million for the same period. Offsetting this was an increase in commercial business loans of $3.2 million. The allowance for credit losses increased $1.6 million to $35.2 million, or 108.6 percent of non-accruing loans and 1.10 percent of gross loans, at June 30, 2024, as compared to an allowance for credit losses of $33.6 million, or 178.9 percent of non-accruing loans and 1.01 percent of gross loans, at December 31, 2023.

Total investment securities decreased by $1.9 million, or 2.0 percent, to $95.0 million at June 30, 2024, from $96.9 million at December 31, 2023, representing unrealized losses, calls, maturities and repayments.

Deposits decreased by $43.8 million, or 1.5 percent, to $2.935 billion at June 30, 2024, from $2.979 billion at December 31, 2023. Interest bearing demand, savings and club accounts, money market accounts and non-interest-bearing accounts declined by $53.0 million, offset by a $9.1 million increase in certificates of deposit.

Debt obligations increased by $275 thousand to $510.7 million at June 30, 2024 from $510.4 million at December 31, 2023. The weighted average interest rate of FHLB advances was 4.21 percent at June 30, 2024 and 4.21 percent at December 31, 2023. The weighted average maturity of FHLB advances as of June 30, 2024 was 1.44 years. The interest rate of the Company’s subordinated debt balances was 8.31 percent at June 30, 2024 and 8.36 percent at December 31, 2023.

Stockholders’ equity increased by $6.7 million, or 2.1 percent, to $320.7 million at June 30, 2024, from $314.1 million at December 31, 2023. The increase was attributable to an increase in the additional paid in capital attributable to its preferred stock of $3.4 million, or 13.4 percent, to $28.4 million at June 30, 2024, and an increase in retained earnings of $2.4 million, or 1.8 percent, to $138.3 million at June 30, 2024 from $135.9 million at December 31, 2023. The increase in its preferred stock paid in capital was due to the issuance of 336 shares of its Series J Noncumulative Perpetual Preferred Stock during the six-month period.

Second Quarter 2024 Income Statement Review

Net income was $2.8 million for the quarter ended June 30, 2024 and $8.6 million for the quarter ended June 30, 2023. The decline was primarily driven by a $4.9 million loss on the sale of loans in the second quarter of 2024 and lower net interest income, which decreased $3.4 million in the second quarter of 2024 as compared with the second quarter of 2023. This was offset, somewhat, by a lower tax provision of $2.3 million and a decrease in non-interest expense of $719 thousand.

Net interest income decreased by $3.4 million, or 12.4 percent, to $23.6 million for the second quarter of 2024, from $27.0 million for the second quarter of 2023. The decrease in net interest income resulted from higher interest expense which was partially offset by higher interest income.

Interest income increased by $2.2 million, or 4.7 percent, to $49.4 million for the second quarter of 2024 from $47.2 million for the second quarter of 2023. The average balance of interest-earning assets decreased $55.4 million, or 1.5 percent, to $3.639 billion for the second quarter of 2024 from $3.695 billion for the second quarter of 2023, while the average yield increased 32 basis points to 5.43 percent for the second quarter of 2024 from 5.11 percent for the second quarter of 2023.

Interest expense increased by $5.6 million to $25.8 million for the second quarter of 2024 from $20.2 million for the second quarter of 2023. The increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 76 basis points to 3.56 percent for the second quarter of 2024 from 2.80 percent for the second quarter of 2023, while the average balance of interest-bearing liabilities increased by $6.03 million to $2.897 billion for the second quarter of 2024 from $2.891 billion for the second quarter of 2023.

The net interest margin was 2.60 percent for the second quarter of 2024 compared to 2.92 percent for the second quarter of 2023. The decrease in the net interest margin compared to the second quarter of 2023 was the result of the increase in the cost of interest-bearing liabilities partially offset by the increase in the yield on interest-earning assets.

During the second quarter of 2024, the Company recognized $1.8 million in net charge-offs compared to $27 thousand in net charge offs for the second quarter of 2023. The Bank had non-accrual loans totaling $32.4 million, or 1.01 percent of gross loans, at June 30, 2024 as compared to $18.8 million, or 0.57 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was $35.2 million, or 1.10 percent of gross loans, at June 30, 2024, and $33.6 million, or 1.01 percent of gross loans, at December 31, 2023. The provision for credit losses was $2.4 million for the second quarter of 2024 compared to $1.9 million for the fourth quarter of 2023. Management believes that the allowance for credit losses on loans was adequate at June 30, 2024 and December 31, 2023.

Non-interest income decreased by $4.4 million to a net loss of $3.2 million for the second quarter of 2024 from a net gain of $1.1 million in the second quarter of 2023. The decrease in total non-interest income was mainly related to the aforementioned $4.9 million loss on the sale of loans.

Non-interest expense decreased by $719 thousand, or 4.9 percent, to $14.0 million for the second quarter of 2024 from $14.7 million for the second quarter of 2023. The decrease in these expenses for the second quarter of 2024 was primarily driven by a lesser amount of salaries and employee benefits expense, which declined $719 thousand.

The income tax provision decreased by $2.3 million, or 66.3 percent, to $1.2 million for the second quarter of 2024 from $3.4 million for the second quarter of 2023. The consolidated effective tax rate was 29.2 percent for the second quarter of 2024 compared to 28.6 percent for the second quarter of 2023.

Year-to-Date Income Statement Review

Net income decreased by $8.0 million, or 48.0 percent, to $8.7 million for the first six months of 2024 from $16.7 million for the first six months of 2023. The decrease in net income was driven, primarily, by lower net interest income of $7.7 million, or 14.1 percent.   

Net interest income decreased by $7.7 million, or 14.1 percent, to $46.8 million for the first six months of 2024 from $54.5 million for the first six months of 2023. The decrease in net interest income resulted from an increase in interest expense of $16.8 million, partly offset by an increase in interest income of $9.1 million.

Interest income increased by $9.1 million, or 10.2 percent, to $98.7 million for the first six months of 2024, from $89.6 million for the first six months of 2023. The average balance of interest-earning assets increased $79.7 million, or 2.2 percent, to $3.669 billion for the first six months of 2024, from $3.590 billion for the first six months of 2023, while the average yield increased 39 basis points to 5.38 percent from 4.99 percent for the same comparable period. The increase in the average balance of interest-earning assets mainly related to an increase in the Company’s level of average interest- bearing bank balances and loans receivable for the first six months of 2024, as compared to the same period in 2023.

Interest expense increased by $16.8 million, or 47.9 percent, to $51.9 million for 2024, from $35.1 million for 2023. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 102 basis points to 3.55 percent for the first six months of 2024, from 2.53 percent for the first six months of 2023, and an increase in the average balance of interest-bearing liabilities of $150.6 million, or 5.4 percent, to $2.927 billion from $2.777 billion over the same period. The increase in the average cost of funds primarily resulted from the higher interest rate environment in the first six months of 2024 compared to the same period in 2023.

Net interest margin was 2.55 percent for the first six months of 2024, compared to 3.03 percent for the first six months of 2023. The decrease in the net interest margin compared to the prior period was the result of an increase in the cost of the Bank’s interest-bearing liabilities.

During the first six months of 2024, the Company experienced $2.9 million in net charge offs compared to $25 thousand in net recoveries for the same period in 2023. The provision for credit losses was $4.5 million for the first six months of 2024 compared to $2.0 million for the same period in 2023.

Non-interest income decreased by $579 thousand to a loss of $1.1 million for the first six months of 2024 from a loss of $546 thousand for the first six months of 2023. Losses on sale of loans increased $4.8 million which was offset by an increase in realized and unrealized gains and losses on equity securities of $3.8 million, and an increase in BOLI income of $658 thousand. The realized and unrealized gains or losses on equity investments are based on market conditions.

Non-interest expense increased by $265 thousand, or 0.9 percent, to $28.8 million for the first six months of 2024 from $28.6 million for the same period in 2023. The increase in operating expenses for 2024 was driven primarily by increases in the off-balance sheet reserves of $921 thousand and $763 thousand in regulatory assessments. This was offset by the Bank recording $1.4 million less in salaries and employee benefits.

The income tax provision decreased by $3.0 million or 45.7 percent, to $3.6 million for the first six months of 2024 from $6.7 million for the same period in 2023. The decrease in the income tax provision was a result of the lower taxable income for the six months ended June 30, 2024 compared to the same period in 2023. The consolidated effective tax rate was 29.4 percent for the first six months of 2024 compared to 28.5 percent for the first six months of 2023.

Asset Quality

During the second quarter of 2024, the Company recognized $1.8 million in net charge offs, compared to $27 thousand in net charge offs for the second quarter of 2023.

The Bank had non-accrual loans totaling $32.4 million, or 1.01 percent of gross loans, at June 30, 2024, as compared to $5.7 million, or 0.17 percent of gross loans, at June 30, 2023. The allowance for credit losses was $35.2 million, or 1.10 percent of gross loans, at June 30, 2024, and $30.2 million, or 0.90 percent of gross loans, at June 30, 2023. The allowance for credit losses was 108.6 percent of non-accrual loans at June 30, 2024, and 530.3 percent of non-accrual loans at June 30, 2023.

About BCB Bancorp, Inc.

Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has twenty-three branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branch offices in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.

Forward-Looking Statements

This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity and capital in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the Federal Reserve. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability to effectively attract and deploy deposits; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levels and slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios; the credit risk associated with our loan portfolio; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in our ability to access cost-effective funding; deposit flows; legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, rates and regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in the securities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to retain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatory requirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere in this report, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, and our other periodic reports that we file with the SEC.

Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s financial results for the periods in question.

The Company provides measurements and ratios based on tangible stockholders' equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

Contact:	Michael Shriner, President & CEO Jawad Chaudhry, EVP & CFO (201) 823-0700

	Statements of Income - Three Months Ended,
	June 30, 2024			March 31, 2024		June 30, 2023			June 30, 2024 vs. Mar 31, 2024			June 30, 2024 vs. June 30, 2023
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	44,036		$	43,722	$	42,644		0.7	%		3.3	%
Mortgage-backed securities		297			305		184		-2.6	%		61.4	%
Other investment securities		1,006			975		1,070		3.2	%		-6.0	%
FHLB stock and other interest-earning assets		4,106			4,283		3,339		-4.1	%		23.0	%
Total interest and dividend income		49,445			49,285		47,237		0.3	%		4.7	%
Interest expense:
Deposits:
Demand		5,349			5,257		4,190		1.8	%		27.7	%
Savings and club		152			166		143		-8.4	%		6.3	%
Certificates of deposit		14,571			14,983		8,474		-2.7	%		71.9	%
		20,072			20,406		12,807		-1.6	%		56.7	%
Borrowings		5,734			5,736		7,441		-0.0	%		-22.9	%
Total interest expense		25,806			26,142		20,248		-1.3	%		27.4	%
Net interest income		23,639			23,143		26,989		2.1	%		-12.4	%
Provision for credit losses		2,438			2,088		1,350		16.8	%		80.6	%
Net interest income after provision for credit losses		21,201			21,055		25,639		0.7	%		-17.3	%
Non-interest (loss) income :
Fees and service charges		1,119			1,215		1,442		-7.9	%		-22.4	%
(Loss) gain on sales of loans		(4,563	)		45		-		-			-
Loss on sale of impaired loans		(288	)		-		-		-			-
Realized and unrealized (loss) gain on equity investments		(222	)		130		(669	)	-270.8	%		-66.8	%
Bank-owned life insurance ("BOLI") income		671			675		267		-0.6	%		151.3	%
Other		49			44		78		11.4	%		-37.2	%
Total non-interest (loss) income		(3,234	)		2,109		1,118		-253.3	%		-389.3	%
Non-interest expense:
Salaries and employee benefits		6,992			6,981		7,711		0.2	%		-9.3	%
Occupancy and equipment		2,529			2,644		2,560		-4.3	%		-1.2	%
Data processing and communications		1,672			1,853		1,795		-9.8	%		-6.9	%
Professional fees		604			595		622		1.5	%		-2.9	%
Director fees		254			277		270		-8.3	%		-5.9	%
Regulatory assessment fees		953			1,142		796		-16.5	%		19.7	%
Advertising and promotions		253			216		350		17.1	%		-27.7	%
Other real estate owned, net		-			-		1		-			-100.0	%
Other		730			1,130		601		-35.4	%		21.5	%
Total non-interest expense		13,987			14,838		14,706		-5.7	%		-4.9	%
Income before income tax provision		3,980			8,326		12,051		-52.2	%		-67.0	%
Income tax provision		1,163			2,460		3,447		-52.7	%		-66.3	%
Net Income		2,817			5,866		8,604		-52.0	%		-67.3	%
Preferred stock dividends		448			434		174		3.2	%		157.3	%
Net Income available to common stockholders	$	2,369		$	5,432	$	8,430		-56.4	%		-71.9	%
Net Income per common share-basic and diluted
Basic	$	0.14		$	0.32	$	0.50		-56.6	%		-72.2	%
Diluted	$	0.14		$	0.32	$	0.50		-56.5	%		-72.2	%
Weighted average number of common shares outstanding
Basic		17,005			16,930		16,824		0.4	%		1.1	%
Diluted		17,005			16,939		16,831		0.4	%		1.0	%

	Statements of Income - Six Months Ended,
	June 30, 2024			June 30, 2023			June 30, 2024 vs. June 30, 2023
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	87,758		$	81,533		7.6	%
Mortgage-backed securities		602			370		62.7	%
Other investment securities		1,981			2,190		-9.5	%
FHLB stock and other interest-earning assets		8,389			5,496		52.6	%
Total interest and dividend income		98,730			89,589		10.2	%
Interest expense:
Deposits:
Demand		10,606			7,344		44.4	%
Savings and club		318			261		21.8	%
Certificates of deposit		29,554			14,927		98.0	%
		40,478			22,532		79.6	%
Borrowings		11,470			12,597		-8.9	%
Total interest expense		51,948			35,129		47.9	%
Net interest income		46,782			54,460		-14.1	%
Provision for credit losses		4,526			1,972		129.5	%
Net interest income after provision for credit losses		42,256			52,488		-19.5	%
Non-interest (loss) income:
Fees and service charges		2,334			2,540		-8.1	%
(Loss) gain on sales of loans		(4,518	)		6		-
Loss on sale of impaired loans		(288	)		-		-
Realized and unrealized loss on equity investments		(92	)		(3,896	)	-97.6	%
Bank-owned life insurance ("BOLI") income		1,346			688		95.6	%
Other		93			116		-19.8	%
Total non-interest loss		(1,125	)		(546	)	106.0	%
Non-interest expense:
Salaries and employee benefits		13,973			15,329		-8.8	%
Occupancy and equipment		5,173			5,112		1.2	%
Data processing and communications		3,525			3,460		1.9	%
Professional fees		1,199			1,188		0.9	%
Director fees		531			535		-0.7	%
Regulatory assessments		2,095			1,332		57.3	%
Advertising and promotions		469			628		-25.3	%
Other real estate owned, net		-			2		-100.0	%
Other		1,860			974		91.0	%
Total non-interest expense		28,825			28,560		0.9	%
Income before income tax provision		12,306			23,382		-47.4	%
Income tax provision		3,623			6,672		-45.7	%
Net Income		8,683			16,710		-48.0	%
Preferred stock dividends		882			347		154.2	%
Net Income available to common stockholders	$	7,801		$	16,363		-52.3	%
Net Income per common share-basic and diluted
Basic	$	0.46		$	0.97		-52.6	%
Diluted	$	0.46		$	0.96		-52.6	%
Weighted average number of common shares outstanding
Basic		16,968			16,886		0.5	%
Diluted		17,102			17,010		0.5	%

Statements of Financial Condition	June 30, 2024			March 31, 2024			December 31, 2023			June 30, 2024 vs. March 31, 2024		June 30, 2024 vs. December 31,2023
ASSETS	(In Thousands, Unaudited)
Cash and amounts due from depository institutions	$	11,146		$	11,795		$	16,597		-5.5	%	-32.8	%
Interest-earning deposits		315,724			340,653			262,926		-7.3	%	20.1	%
Total cash and cash equivalents		326,870			352,448			279,523		-7.3	%	16.9	%
Interest-earning time deposits		735			735			735		-		-
Debt securities available for sale		85,964			86,966			87,769		-1.2	%	-2.1	%
Equity investments		9,001			9,223			9,093		-2.4	%	-1.0	%
Loans held for sale		35,187			-			1,287		-		2634.0	%
Loans receivable, net of allowance for credit losses
of $35, 243, $34,563 and $33,608 , respectively		3,161,925			3,226,877			3,279,708		-2.0	%	-3.6	%
Federal Home Loan Bank of New York ("FHLB") stock, at cost		25,001			24,917			24,917		0.3	%	0.3	%
Premises and equipment, net		12,346			12,744			13,057		-3.1	%	-5.4	%
Accrued interest receivable		16,576			17,442			16,072		-5.0	%	3.1	%
Deferred income taxes		17,227			17,555			18,213		-1.9	%	-5.4	%
Goodwill and other intangibles		5,253			5,253			5,253		0.0	%	0.0	%
Operating lease right-of-use asset		13,556			12,186			12,935		11.2	%	4.8	%
Bank-owned life insurance ("BOLI")		74,752			74,081			73,407		0.9	%	1.8	%
Other assets		9,548			8,768			10,428		8.9	%	-8.4	%
Total Assets	$	3,793,941		$	3,849,195		$	3,832,397		-1.4	%	-1.0	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits	$	523,816		$	531,112		$	536,264		-1.4	%	-2.3	%
Interest bearing deposits		2,411,423			2,460,547			2,442,816		-2.0	%	-1.3	%
Total deposits		2,935,239			2,991,659			2,979,080		-1.9	%	-1.5	%
FHLB advances		473,086			472,949			472,811		0.0	%	0.1	%
Subordinated debentures		37,624			37,624			37,624		0.0	%	0.0	%
Operating lease liability		13,973			12,579			13,315		11.1	%	4.9	%
Other liabilities		13,287			14,253			15,512		-6.8	%	-14.3	%
Total Liabilities		3,473,209			3,529,064			3,518,342		-1.6	%	-1.3	%
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000 shares authorized		-			-			-		-		-
Additional paid-in capital preferred stock		28,403			27,733			25,043		2.4	%	13.4	%
Common stock: no par value, 40,000 shares authorized		-			-			-		0.0	%	0.0	%
Additional paid-in capital common stock		200,162			199,726			198,923		0.2	%	0.6	%
Retained earnings		138,309			138,643			135,927		-0.2	%	1.8	%
Accumulated other comprehensive loss		(7,795	)		(7,624	)		(7,491	)	2.2	%	4.1	%
Treasury stock, at cost		(38,347	)		(38,347	)		(38,347	)	0.0	%	0.0	%
Total Stockholders' Equity		320,732			320,131			314,055		0.2	%	2.1	%
Total Liabilities and Stockholders' Equity	$	3,793,941		$	3,849,195		$	3,832,397		-1.4	%	-1.0	%
Outstanding common shares		17,029			16,957			16,904

	Three Months Ended June 30,
		2024							2023
	Average Balance		Interest Earned/Paid		Average Yield/Rate (3)			Average Balance			Interest Earned/Paid		Average Yield/Rate (3)
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable (4)(5)	$	3,246,612	$	44,036	5.43	%		$	3,315,120		$	42,644	5.15	%
Investment Securities		95,241		1,303	5.47	%			100,971			1,254	4.97	%
FHLB stock and other interest-earning assets		297,574		4,106	5.52	%			278,746			3,339	4.79	%
Total Interest-earning assets		3,639,428		49,445	5.43	%			3,694,837			47,237	5.11	%
Non-interest-earning assets		123,550							125,032
Total assets	$	3,762,978						$	3,819,869
Interest-bearing liabilities:
Interest-bearing demand accounts	$	546,391	$	2,279	1.67	%		$	712,414		$	2,209	1.24	%
Money market accounts		370,204		3,070	3.32	%			331,339			1,981	2.39	%
Savings accounts		267,919		152	0.23	%			312,201			143	0.18	%
Certificates of Deposit		1,202,306		14,571	4.85	%			904,766			8,474	3.75	%
Total interest-bearing deposits		2,386,819		20,072	3.36	%			2,260,721			12,807	2.27	%
Borrowed funds		510,634		5,734	4.49	%			630,706			7,441	4.72	%
Total interest-bearing liabilities		2,897,452		25,806	3.56	%			2,891,427			20,248	2.80	%
Non-interest-bearing liabilities		545,269							630,928
Total liabilities		3,442,721							3,522,355
Stockholders' equity		320,257							297,514
Total liabilities and stockholders' equity	$	3,762,978						$	3,819,869
Net interest income			$	23,639							$	26,989
Net interest rate spread(1)					1.87	%							2.31	%
Net interest margin(2)					2.60	%							2.92	%
(1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average total interest-earning assets.
(3) Annualized.
(4) Excludes allowance for credit losses.
(5) Includes non-accrual loans.

	Six Months Ended June 30,
		2024								2023
	Average Balance			Interest Earned/Paid		Average Yield/Rate (3)			Average Balance		Interest Earned/Paid		Average Yield/Rate (3)
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable (4)(5)	$	3,273,200		$	87,758	5.36	%		$	3,240,812	$	81,533	5.03	%
Investment Securities		95,747			2,583	5.40	%			104,898		2,560	4.88	%
FHLB stock and other interest-earning assets		300,433			8,389	5.58	%			243,987		5,496	4.51	%
Total Interest-earning assets		3,669,380			98,730	5.38	%			3,589,697		89,589	4.99	%
Non-interest-earning assets		124,477								120,965
Total assets	$	3,793,857							$	3,710,663
Interest-bearing liabilities:
Interest-bearing demand accounts	$	553,290		$	4,509	1.63	%		$	713,097	$	3,998	1.12	%
Money market accounts		369,650			6,097	3.30	%			322,930		3,346	2.07	%
Savings accounts		272,825			318	0.23	%			317,451		261	0.16	%
Certificates of Deposit		1,221,056			29,554	4.84	%			876,762		14,927	3.40	%
Total interest-bearing deposits		2,416,821			40,478	3.35	%			2,230,241		22,532	2.02	%
Borrowed funds		510,569			11,470	4.49	%			546,528		12,597	4.61	%
Total interest-bearing liabilities		2,927,390			51,948	3.55	%			2,776,769		35,129	2.53	%
Non-interest-bearing liabilities		548,985								638,406
Total liabilities		3,476,375								3,415,175
Stockholders' equity		317,482								295,488
Total liabilities and stockholders' equity	$	3,793,857							$	3,710,663
Net interest income				$	46,782						$	54,460
Net interest rate spread(1)						1.83	%						2.46	%
Net interest margin(2)						2.55	%						3.03	%
(1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average total interest-earning assets.
(3) Annualized.
(4) Excludes allowance for credit losses.
(5) Includes non-accrual loans.

	Financial Condition data by quarter
	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
	(In thousands, except book values)
Total assets	$	3,793,941		$	3,849,195		$	3,832,397		$	3,812,120		$	3,872,853
Cash and cash equivalents		326,870			352,448			279,523			251,916			273,212
Securities		94,965			96,189			96,862			94,444			100,473
Loans receivable, net		3,161,925			3,226,877			3,279,708			3,285,727			3,319,721
Deposits		2,935,239			2,991,659			2,979,080			2,819,556			2,885,721
Borrowings		510,710			510,573			510,435			660,298			660,160
Stockholders’ equity		320,732			320,131			314,055			303,636			299,623
Book value per common share1	$	17.17		$	17.24		$	17.10		$	16.79		$	16.60
Tangible book value per common share2	$	16.86		$	16.93		$	16.79		$	16.48		$	16.28
	Operating data by quarter
	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
	(In thousands, except for per share amounts)
Net interest income	$	23,639		$	23,143		$	23,922		$	25,680		$	26,989
Provision for credit losses		2,438			2,088			1,927			2,205			1,350
Non-interest (loss) income		(3,234	)		2,109			3,228			1,406			1,118
Non-interest expense		13,987			14,838			16,568			15,463			14,706
Income tax expense		1,163			2,460			2,593			2,707			3,447
Net income	$	2,817		$	5,866		$	6,062		$	6,711		$	8,604
Net income per diluted share	$	0.14		$	0.32		$	0.35		$	0.39		$	0.50
Common Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
	Financial Ratios(3)
	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
Return on average assets		0.30	%		0.61	%		0.63	%		0.70	%		0.90	%
Return on average stockholders' equity		3.52	%		7.46	%		7.91	%		8.92	%		11.57	%
Net interest margin		2.60	%		2.50	%		2.57	%		2.78	%		2.92	%
Stockholders' equity to total assets		8.45	%		8.32	%		8.19	%		7.97	%		7.74	%
Efficiency Ratio4		68.55	%		58.76	%		61.02	%		57.09	%		52.32	%
	Asset Quality Ratios
	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
	(In thousands, except for ratio %)
Non-Accrual Loans	$	32,448		$	22,241		$	18,783		$	7,931		$	5,696
Non-Accrual Loans as a % of Total Loans		1.01	%		0.68	%		0.57	%		0.24	%		0.17	%
ACL as % of Non-Accrual Loans		108.6	%		155.4	%		178.9	%		402.4	%		530.3	%
Individually Analyzed Loans		60,798			65,731			54,019			35,868			28,250
Classified Loans		87,033			97,739			85,727			42,807			28,250
(1) Calculated by dividing stockholders' equity, less preferred equity, to shares outstanding.
(2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’
common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”
(3) Ratios are presented on an annualized basis, where appropriate.
(4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income
and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”

	Recorded Investment in Loans Receivable by quarter
	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
	(In thousands)
Residential one-to-four family	$	242,706		$	244,762		$	248,295		$	251,845		$	250,345
Commercial and multi-family		2,340,385			2,392,970			2,434,115			2,444,887			2,490,883
Construction		173,207			180,975			192,816			185,202			179,156
Commercial business		375,355			378,073			372,202			370,512			368,948
Home equity		66,843			65,518			66,331			66,046			61,595
Consumer		2,053			2,847			3,643			3,647			3,994
	$	3,200,549		$	3,265,145		$	3,317,402		$	3,322,139		$	3,354,921
Less:
Deferred loan fees, net		(3,381	)		(3,705	)		(4,086	)		(4,498	)		(4,995	)
Allowance for credit losses		(35,243	)		(34,563	)		(33,608	)		(31,914	)		(30,205	)
Total loans, net	$	3,161,925		$	3,226,877		$	3,279,708		$	3,285,727		$	3,319,721
	Non-Accruing Loans in Portfolio by quarter
	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
	(In thousands)
Residential one-to-four family	$	350		$	429		$	270		$	178		$	178
Commercial and multi-family		27,796			12,627			8,684			3,267			-
Construction		586			3,225			4,292			2,886			4,145
Commercial business		3,673			5,916			5,491			1,600			1,373
Home equity		43			44			46			-			-
Total:	$	32,448		$	22,241		$	18,783		$	7,931		$	5,696
	Distribution of Deposits by quarter
	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
	(In thousands)
Demand:
Non-Interest Bearing	$	523,816		$	531,112		$	536,264		$	523,912		$	620,509
Interest Bearing		549,239			552,295			564,912			574,577			714,420
Money Market		371,689			361,791			370,934			348,732			328,543
Sub-total:	$	1,444,744		$	1,445,198		$	1,472,110		$	1,447,221		$	1,663,472
Savings and Club		258,680			272,051			284,273			293,962			307,435
Certificates of Deposit		1,231,815			1,274,410			1,222,697			1,078,373			914,814
Total Deposits:	$	2,935,239		$	2,991,659		$	2,979,080		$	2,819,556		$	2,885,721

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
	Tangible Book Value per Share
	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
	(In thousands, except per share amounts)
Total Stockholders' Equity	$	320,732		$	320,131		$	314,055		$	303,636		$	299,623
Less: goodwill		5,253			5,253			5,253			5,253			5,253
Less: preferred stock		28,403			27,733			25,043			20,783			21,003
Total tangible common stockholders' equity		287,076			287,145			283,759			277,601			273,368
Shares common shares outstanding		17,029			16,957			16,904			16,848			16,788
Book value per common share	$	17.17		$	17.24		$	17.10		$	16.79		$	16.60
Tangible book value per common share	$	16.86		$	16.93		$	16.79		$	16.48		$	16.28
	Efficiency Ratios
	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
	(In thousands, except for ratio %)
Net interest income	$	23,639		$	23,143		$	23,922		$	25,680		$	26,989
Non-interest (loss) income		(3,234	)		2,109			3,228			1,406			1,118
Total income		20,405			25,252			27,150			27,086			28,107
Non-interest expense		13,987			14,838			16,568			15,463			14,706
Efficiency Ratio		68.55	%		58.76	%		61.02	%		57.09	%		52.32	%

FAQ

What was BCB Bancorp's (BCBP) net income for Q2 2024?

BCB Bancorp reported a net income of $2.8 million for the second quarter of 2024.

How much was BCB Bancorp's (BCBP) earnings per diluted share in Q2 2024?

BCB Bancorp's earnings per diluted share for Q2 2024 were $0.14.

What dividend did BCB Bancorp (BCBP) declare for Q2 2024?

BCB Bancorp declared a quarterly cash dividend of $0.16 per share for Q2 2024.

What was the main reason for BCB Bancorp's (BCBP) lower net income in Q2 2024?

The main reason for the lower net income was a $4.6 million pre-tax loss recorded on an agreement to sell a pool of commercial real estate and multifamily loans.

What was BCB Bancorp's (BCBP) net interest margin in Q2 2024?

BCB Bancorp's net interest margin was 2.60% for the second quarter of 2024.