BCB Bancorp, Inc. Earns $6.7 Million in Third Quarter 2024; Reports $0.36 EPS and Declares Quarterly Cash Dividend of $0.16 Per Share

Rhea-AI Summary

BCB Bancorp, Inc. reported net income of $6.7 million for the third quarter of 2024, with earnings per diluted share of $0.36. The company declared a quarterly cash dividend of $0.16 per share. Key financial highlights include:

- Total deposits decreased to $2.725 billion
- Net interest margin was 2.58%
- Efficiency ratio improved to 53.22%
- Return on average assets was 0.72%
- Return on average equity was 8.29%
- Allowance for credit losses increased to 1.11% of gross loans

The company successfully completed a $40 million subordinated debt offering, strengthening its capital position. Total assets decreased by 5.7% to $3.614 billion, mainly due to a decrease in loans. The company experienced higher non-interest income and lower non-interest expenses compared to the same quarter in 2023.

Positive

• Successful completion of $40 million subordinated debt offering, strengthening capital position
• Improved efficiency ratio from 68.55% in prior quarter to 53.22%
• Increased non-interest income by $1.7 million compared to Q3 2023
• Decreased non-interest expense by $1.5 million compared to Q3 2023
• Increased allowance for credit losses to 1.11% of gross loans, up from 0.96% in Q3 2023

Negative

• Net income remained flat at $6.7 million compared to Q3 2023
• Total deposits decreased by 8.5% to $2.725 billion from December 31, 2023
• Net interest margin decreased to 2.58% from 2.78% in Q3 2023
• Loans receivable, net, decreased by 5.8% to $3.088 billion from December 31, 2023
• Non-accrual loans increased to $35.3 million (1.11% of gross loans) from $18.8 million (0.57%) at December 31, 2023

Insights

Financial Analyst

BCB Bancorp's Q3 2024 results show mixed performance. Net income of $6.7 million remained flat year-over-year but improved significantly from Q2 2024. The earnings per share of $0.36 decreased from $0.39 in Q3 2023 but more than doubled from Q2 2024's $0.14.

Key financial metrics reveal challenges:

• Net interest margin declined to 2.58% from 2.78% a year ago
• Total deposits decreased by 8.5% year-to-date
• Loans receivable decreased by 5.8% year-to-date
• Non-accrual loans increased to 1.11% of gross loans from 0.57% at year-end 2023

However, there are positive aspects:

• Successful $40 million subordinated debt offering, strengthening capital
• Improved efficiency ratio of 53.22% compared to 68.55% in Q2
• Increased allowance for credit losses to 1.11% of gross loans

The bank faces challenges in a high-interest rate environment but is taking steps to optimize its balance sheet and maintain capital strength.

Risk Management Expert

The credit quality metrics for BCB Bancorp show concerning trends that warrant close attention:

• Non-accrual loans increased significantly to $35.3 million (1.11% of gross loans) from $18.8 million (0.57%) at year-end 2023
• Net charge-offs rose to $3.4 million in Q3 2024, up from $496,000 in Q3 2023
• Year-to-date net charge-offs reached $6.3 million, compared to $471,000 in net recoveries for the same period in 2023

The bank has responded by increasing its provision for credit losses to $2.9 million for Q3 and $7.4 million year-to-date. The allowance for credit losses now stands at 1.11% of gross loans, up from 1.01% at year-end 2023.

While these actions demonstrate proactive risk management, the rapid deterioration in credit quality is concerning and may impact future earnings if the trend continues. Investors should monitor the bank's ability to manage credit risk in this challenging economic environment.

BAYONNE, N.J., Oct. 18, 2024 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $6.7 million for the third quarter of 2024, compared to $2.8 million in the second quarter of 2024, and $6.7 million for the third quarter of 2023. Earnings per diluted share for the third quarter of 2024 were $0.36, compared to $0.14 in the preceding quarter and $0.39 in the third quarter of 2023.

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 November 15, 2024 to common shareholders of record on November 1, 2024.

“Our liquidity profile and capital position continue to strengthen as management remains focused on optimizing the Bank’s balance sheet. We are very pleased with the successful completion of our subordinated debt offering during the third quarter that generated a positive response from the investors. The offering was upsized from an initial target of $33.5 million to $40.0 million and further bolstered our capital position. The transaction was in line with our strategy of refinancing our existing $33.5 million of subordinated debt that had started to lose Tier 2 regulatory capital status,” stated Michael Shriner, President and Chief Executive Officer.

Executive Summary

• Total deposits were $2.725 billion at September 30, 2024 compared to $2.935 billion at June 30, 2024.
• Net interest margin was 2.58 percent for the third quarter of 2024, compared to 2.60 percent for the second quarter of 2024, and 2.78 percent for the third quarter of 2023.
  • Total yield on interest-earning assets was 5.44 percent for the third quarter of 2024 compared to 5.43 percent for the second quarter of 2024, and 5.31 percent for the third quarter of 2023.
  • Total cost of interest-bearing liabilities was 3.62 percent for the third quarter of 2024, compared to 3.56 percent for the second quarter of 2024, and 3.17 percent for the third quarter of 2023.
• The efficiency ratio for the third quarter was 53.22 percent compared to 68.55 percent in the prior quarter, and 57.09 percent in the third quarter of 2023.
• The annualized return on average assets ratio for the third quarter was 0.72 percent, compared to 0.30 percent in the prior quarter, and 0.70 percent in the third quarter of 2023.
• The annualized return on average equity ratio for the third quarter was 8.29 percent, compared to 3.52 percent in the prior quarter, and 8.92 percent in the third quarter of 2023.
• The provision for credit losses was $2.9 million in the third quarter of 2024 compared to $2.4 million for the second quarter of 2024, and $2.2 million for the third quarter of 2023.
• The allowance for credit losses (“ACL”) as a percentage of total loans was 1.11 percent at September 30, 2024 compared to 1.10 percent at the prior quarter-end and 0.96 percent at September 30, 2023.
• Total loans receivable, net of the allowance for credit losses, of $3.088 billion at September 30, 2024, decreased 6.4 percent from $3.286 billion at September 30, 2023.

Balance Sheet Review

Total assets decreased by $218.6 million, or 5.7 percent, to $3.614 billion at September 30, 2024, from $3.832 billion at December 31, 2023. The decrease in total assets was mainly related to a decrease in loans of $191.8 million. The decrease was primarily from loan payoffs/paydowns that exceeded loan originations.

Total cash and cash equivalents decreased by $36.4 million, or 13.0 percent, to $243.1 million at September 30, 2024, from $279.5 million at December 31, 2023. The decrease was primarily due to the withdrawal of brokered deposits.

Loans receivable, net, decreased by $191.8 million, or 5.8 percent, to $3.088 billion at September 30, 2024, from $3.280 billion at December 31, 2023. Total loan decreases during the period included decreases of $137.2 million in commercial real estate multi-family loans, $46.3 million in construction loans and 1-4 family residential loans of $7.2 million for the same period. Commercial business loans also decreased $837 thousand. The allowance for credit losses increased $1.1 million to $34.7 million, or 98.2 percent of non-accruing loans and 1.11 percent of gross loans, at September 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 increased by $11.4 million, or 11.8 percent, to $108.3 million at September 30, 2024, from $96.9 million at December 31, 2023, as excess liquidity has been deployed into the securities portfolio.

Deposits decreased by $254.5 million, or 8.5 percent, to $2.725 billion at September 30, 2024, from $2.979 billion at December 31, 2023. A majority of the decline was due to a decrease in certificates of deposit of $175.8 million. The reduction in certificates of deposit was mainly caused by the withdrawal of brokered deposits which was partially offset by an increase in retail time deposits.

Total borrowings increased by $23.0 million to $533.4 million at September 30, 2024 from $510.4 million at December 31, 2023. The increase in borrowings was primarily due to the successful completion of the $40 million subordinated debt offering during the third quarter of 2024. The weighted average interest rate of FHLB advances was 4.26 percent at September 30, 2024 and 4.21 percent at December 31, 2023. The weighted average maturity of FHLB advances as of September 30, 2024 was 1.20 years. The interest rate of the Company’s subordinated debt balances was 8.87 percent at September 30, 2024 and 8.36 percent at December 31, 2023.

Stockholders’ equity increased by $14.1 million, or 4.5 percent, to $328.1 million at September 30, 2024, from $314.1 million at December 31, 2023. The increase was attributable to an increase in additional paid in capital attributable to the issuance of additional shares of preferred stock of $4.7 million during 2024, or 18.8 percent, to $29.8 million at September 30, 2024, and an increase in retained earnings of $5.8 million, or 4.3 percent, to $141.8 million at September 30, 2024 from $135.9 million at December 31, 2023. The increase in preferred stock paid in capital was due to the issuance of 427 shares of its Series J Noncumulative Perpetual Preferred Stock during the nine-month period.

Third Quarter 2024 Income Statement Review

Net income was $6.7 million for the quarter ended September 30, 2024 and $6.7 million for the quarter ended September 30, 2023. The third quarter of 2024 benefited from higher non-interest income of $1.7 million and lower non-interest expense of $1.5 million, compared to the third quarter of 2023. This was offset by net interest income that was lower by $2.6 million relative to the third quarter of 2023, driven by higher interest expense and lower interest income.

Net interest income decreased by $2.6 million, or 10.3 percent, to $23.0 million for the third quarter of 2024, from $25.7 million for the third quarter of 2023. The decrease in net interest income resulted from higher interest expense and lower interest income.

Interest income decreased by $441 thousand, or 0.9 percent, to $48.6 million for the third quarter of 2024 from $49.1 million for the third quarter of 2023. The average balance of interest-earning assets decreased $119.3 million, or 3.2 percent, to $3.579 billion for the third quarter of 2024 from $3.698 billion for the third quarter of 2023, while the average yield increased 13 basis points to 5.44 percent for the third quarter of 2024 from 5.31 percent for the third quarter of 2023.

Interest expense increased by $2.2 million to $25.6 million for the third quarter of 2024 from $23.4 million for the third quarter of 2023. The increase resulted from an increase in the average rate on interest-bearing liabilities of 45 basis points to 3.62 percent for the third quarter of 2024 from 3.17 percent for the third quarter of 2023, offset by a decrease in interest-bearing liabilities of $123.4 million to $2.823 billion for the third quarter of 2024 from $2.947 billion for the third quarter of 2023.

The net interest margin was 2.58 percent for the third quarter of 2024 compared to 2.78 percent for the third quarter of 2023. The decrease in the net interest margin compared to the third 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 third quarter of 2024, the Company recognized $3.4 million in net charge-offs compared to $496 thousand in net charge offs for the third quarter of 2023. The Bank had non-accrual loans totaling $35.3 million, or 1.11 percent of gross loans, at September 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 $34.7 million, or 1.11 percent of gross loans, at September 30, 2024, and $33.6 million, or 1.01 percent of gross loans, at December 31, 2023. The provision for credit losses was $2.9 million for the third 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 September 30, 2024 and December 31, 2023.

Non-interest income increased by $1.7 million to $3.1 million for the third quarter of 2024 from $1.4 million in the third quarter of 2023. The increase in total non-interest income was mainly related to gains on equity investments of $1.6 million.

Non-interest expense decreased by $1.5 million, or 9.9 percent, to $13.9 million for the third quarter of 2024 from $15.5 million for the third quarter of 2023. The decrease in these expenses for the third quarter of 2024 was driven by lower regulatory assessment fees of $445 thousand, salaries and employee benefits expense, which declined $385 thousand, and advertising and promotion costs, which declined by $135 thousand.

The income tax provision decreased by $22 thousand, or 0.8 percent, to $2.7 million for the third quarter of 2024. The provision was $2.7 million for the third quarter of 2023. The consolidated effective tax rate was 28.7 percent for both the third quarter of 2024 and for the third quarter of 2023.

Year-to-Date Income Statement Review

Net income decreased by $8.1 million, or 34.5 percent, to $15.4 million for the first nine months of 2024 from $23.4 million for the first nine months of 2023. The decrease in net income was driven, primarily, by lower net interest income of $10.3 million, or 12.9 percent.

Net interest income decreased by $10.3 million, or 12.9 percent, to $69.8 million for the first nine months of 2024 from $80.1 million for the first nine months of 2023. The decrease in net interest income resulted from an increase in interest expense of $19.0 million, partly offset by an increase in interest income of $8.7 million.

Interest income increased by $8.7 million, or 6.3 percent, to $147.4 million for the first nine months of 2024, from $138.7 million for the first nine months of 2023. The average balance of interest-earning assets increased $12.7 million, or 0.4 percent, to $3.639 billion for the first nine months of 2024, from $3.626 billion for the first nine months of 2023, while the average yield increased 30 basis points to 5.40 percent from 5.10 percent for the same comparable period. The increase in average cash balances mainly related to the increase in the Company’s level of average interest-bearing bank balances, partially offset by a decline in loan receivables and investments for the first nine months of 2024, as compared to the same period in 2023.

Interest expense increased by $19.0 million, or 32.5 percent, to $77.5 million for 2024, from $58.5 million for 2023. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 82 basis points to 3.57 percent for the first nine months of 2024, from 2.75 percent for the first nine months of 2023, and an increase in the average balance of interest-bearing liabilities of $58.4 million, or 2.1 percent, to $2.892 billion from $2.834 billion over the same period. The increase in the average cost of funds primarily resulted from the higher interest rate environment in the first nine months of 2024 compared to the same period in 2023.

Net interest margin was 2.56 percent for the first nine months of 2024, compared to 2.95 percent for the first nine 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 nine months of 2024, the Company experienced $6.3 million in net charge offs compared to $471 thousand in net recoveries for the same period in 2023. The provision for credit losses was $7.4 million for the first nine months of 2024 compared to $4.2 million for the same period in 2023.

Non-interest income increased by $1.1 million to $2.0 million for the first nine months of 2024 from $860 thousand for the first nine months of 2023. Realized and unrealized gains on equity securities and income on Bank Owned Life Insurance (BOLI) increased $5.4 million and $844 thousand, respectively. Offsetting this were losses on the sale of loans of $4.8 million. The realized and unrealized gains or losses on equity investments are based on prevailing market conditions.

Non-interest expense decreased by $1.3 million, or 2.9 percent, to $42.8 million for the first nine months of 2024 from $44.0 million for the same period in 2023. The decrease in operating expenses for 2024 was driven primarily by decreases in salaries and employee benefits of $1.7 million. This was partially offset by regulatory assessment costs being $318 thousand greater in 2024.

The income tax provision decreased by $3.1 million, or 32.7 percent to $6.3 million for the first nine months of 2024 from $9.4 million for the same period in 2023. The consolidated effective tax rate was 29.1 percent for the first nine months of 2024 compared to 28.6 percent for the first nine months of 2023.

Asset Quality

During the third quarter of 2024, the Company recognized $3.4 million in net charge offs, compared to $496 thousand in net charge offs for the third quarter of 2023.

The Bank had non-accrual loans totaling $35.3 million, or 1.11 percent of gross loans, at September 30, 2024, as compared to $7.9 million, or 0.24 percent of gross loans, at September 30, 2023. The allowance for credit losses was $34.7 million, or 1.11 percent of gross loans, at September 30, 2024, and $31.9 million, or 0.96 percent of gross loans, at September 30, 2023. The allowance for credit losses was 98.2 percent of non-accrual loans at September 30, 2024, and 402.4 percent of non-accrual loans at September 30, 2023.

About BCB Bancorp, Inc.

BCB Bancorp, Inc. is a New Jersey corporation established in 2003, and is the holding company parent of BCB Community Bank. The Company has not engaged in any significant business activity other than owning all of the outstanding common stock of the Bank. Established in 2000 and headquartered in Bayonne, N.J., the 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 three 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; the impact of any future pandemics or other natural disasters; 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,
	September 30, 2024		June 30, 2024			September 30, 2023			September 30, 2024 vs. June 30, 2024			September 30, 2024 vs. September 30, 2023
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	42,857	$	44,036		$	44,133		-2.7	%		-2.9	%
Mortgage-backed securities		303		297			217		2.0	%		39.6	%
Other investment securities		994		1,006			1,045		-1.2	%		-4.9	%
FHLB stock and other interest-earning assets		4,472		4,106			3,672		8.9	%		21.8	%
Total interest and dividend income		48,626		49,445			49,067		-1.7	%		-0.9	%
Interest expense:
Deposits:
Demand		5,686		5,349			4,556		6.3	%		24.8	%
Savings and club		146		152			182		-3.9	%		-19.8	%
Certificates of deposit		13,670		14,571			10,922		-6.2	%		25.2	%
		19,502		20,072			15,660		-2.8	%		24.5	%
Borrowings		6,079		5,734			7,727		6.0	%		-21.3	%
Total interest expense		25,581		25,806			23,387		-0.9	%		9.4	%
Net interest income		23,045		23,639			25,680		-2.5	%		-10.3	%
Provision for credit losses		2,890		2,438			2,205		18.5	%		31.1	%
Net interest income after provision for credit losses		20,155		21,201			23,475		-4.9	%		-14.1	%
Non-interest income income (loss) :
Fees and service charges		1,196		1,119			1,349		6.9	%		-11.3	%
Gain (loss) on sales of loans		35		(4,563	)		19		-100.8	%		84.2	%
Loss on sale of impaired loans		-		(288	)		-		-			-
Realized and unrealized gain (loss) on equity investments		1,132		(222	)		(494	)	-609.9	%		-329.1	%
Bank-owned life insurance ("BOLI") income		652		671			466		-2.8	%		39.9	%
Other		112		49			66		128.6	%		69.7	%
Total non-interest income income (loss)		3,127		(3,234	)		1,406		-196.7	%		122.4	%
Non-interest expense:
Salaries and employee benefits		7,139		6,992			7,524		2.1	%		-5.1	%
Occupancy and equipment		2,591		2,529			2,622		2.5	%		-1.2	%
Data processing and communications		1,681		1,672			1,787		0.5	%		-5.9	%
Professional fees		618		604			560		2.3	%		10.4	%
Director fees		351		254			274		38.2	%		28.1	%
Regulatory assessment fees		666		953			1,111		-30.1	%		-40.1	%
Advertising and promotions		182		253			317		-28.1	%		-42.6	%
Other real estate owned, net		-		-			1		-			-100.0	%
Other		701		730			1,267		-4.0	%		-44.7	%
Total non-interest expense		13,929		13,987			15,463		-0.4	%		-9.9	%
Income before income tax provision		9,353		3,980			9,418		135.0	%		-0.7	%
Income tax provision		2,685		1,163			2,707		130.9	%		-0.8	%
Net Income		6,668		2,817			6,711		136.7	%		-0.6	%
Preferred stock dividends		475		448			173		6.1	%		174.3	%
Net Income available to common stockholders	$	6,193	$	2,369		$	6,538		161.4	%		-5.3	%
Net Income per common share-basic and diluted
Basic	$	0.36	$	0.14		$	0.39		160.9	%		-6.4	%
Diluted	$	0.36	$	0.14		$	0.39		160.5	%		-6.4	%
Weighted average number of common shares outstanding
Basic		17,039		17,005			16,830		0.2	%		1.2	%
Diluted		17,064		17,005			16,854		0.3	%		1.2	%

	Statements of Income - Nine Months Ended,
	September 30, 2024			September 30, 2023			September 30, 2024 vs. September 30, 2023
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	130,615		$	125,666		3.9	%
Mortgage-backed securities		905			587		54.2	%
Other investment securities		2,975			3,235		-8.0	%
FHLB stock and other interest-earning assets		12,861			9,168		40.3	%
Total interest and dividend income		147,356			138,656		6.3	%
Interest expense:
Deposits:
Demand		16,292			11,900		36.9	%
Savings and club		464			443		4.7	%
Certificates of deposit		43,224			25,849		67.2	%
		59,980			38,192		57.0	%
Borrowings		17,549			20,324		-13.7	%
Total interest expense		77,529			58,516		32.5	%
Net interest income		69,827			80,140		-12.9	%
Provision for credit losses		7,416			4,177		77.5	%
Net interest income after provision for credit losses		62,411			75,963		-17.8	%
Non-interest income:
Fees and service charges		3,530			3,889		-9.2	%
(Loss) gain on sales of loans		(4,483	)		25		-
Loss on sale of impaired loans		(288	)		-		-
Realized and unrealized gain (loss) on equity investments		1,040			(4,390	)	-123.7	%
Bank-owned life insurance ("BOLI") income		1,998			1,154		73.1	%
Other		205			182		12.6	%
Total non-interest income		2,002			860		132.8	%
Non-interest expense:
Salaries and employee benefits		21,112			22,853		-7.6	%
Occupancy and equipment		7,764			7,734		0.4	%
Data processing and communications		5,206			5,247		-0.8	%
Professional fees		1,817			1,748		3.9	%
Director fees		882			809		9.0	%
Regulatory assessments		2,761			2,443		13.0	%
Advertising and promotions		651			945		-31.1	%
Other real estate owned, net		-			3		-100.0	%
Other		2,561			2,241		14.3	%
Total non-interest expense		42,754			44,023		-2.9	%
Income before income tax provision		21,659			32,800		-34.0	%
Income tax provision		6,308			9,379		-32.7	%
Net Income		15,351			23,421		-34.5	%
Preferred stock dividends		1,357			520		161.0	%
Net Income available to common stockholders	$	13,994		$	22,901		-38.9	%
Net Income per common share-basic and diluted
Basic	$	0.82		$	1.36		-39.3	%
Diluted	$	0.82		$	1.35		-39.0	%
Weighted average number of common shares outstanding
Basic		16,991			16,868		0.7	%
Diluted		16,992			16,951		0.2	%

Statements of Financial Condition	September 30, 2024			June 30, 2024			December 31, 2023			September 30, 2024 vs. June 30, 2024		September 30, 2024 vs. December 31, 2023
ASSETS	(In Thousands, Unaudited)
Cash and amounts due from depository institutions	$	12,617		$	11,146		$	16,597		13.2	%	-24.0	%
Interest-earning deposits		230,506			315,724			262,926		-27.0	%	-12.3	%
Total cash and cash equivalents		243,123			326,870			279,523		-25.6	%	-13.0	%
Interest-earning time deposits		735			735			735		-		-
Debt securities available for sale		98,169			85,964			87,769		14.2	%	11.8	%
Equity investments		10,133			9,001			9,093		12.6	%	11.4	%
Loans held for sale		250			35,187			1,287		-99.3	%	-80.6	%
Loans receivable, net of allowance for credit losses of $34,693, $35,243 and $33,608 , respectively		3,087,914			3,161,925			3,279,708		-2.3	%	-5.8	%
Federal Home Loan Bank of New York ("FHLB") stock, at cost		24,732			25,001			24,917		-1.1	%	-0.7	%
Premises and equipment, net		12,008			12,346			13,057		-2.7	%	-8.0	%
Accrued interest receivable		16,496			16,576			16,072		-0.5	%	2.6	%
Deferred income taxes		17,370			17,227			18,213		0.8	%	-4.6	%
Goodwill and other intangibles		5,253			5,253			5,253		0.0	%	0.0	%
Operating lease right-of-use asset		13,438			13,556			12,935		-0.9	%	3.9	%
Bank-owned life insurance ("BOLI")		75,404			74,752			73,407		0.9	%	2.7	%
Other assets		8,745			9,548			10,428		-8.4	%	-16.1	%
Total Assets	$	3,613,770		$	3,793,941		$	3,832,397		-4.7	%	-5.7	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits	$	528,089		$	523,816		$	536,264		0.8	%	-1.5	%
Interest bearing deposits		2,196,491			2,411,423			2,442,816		-8.9	%	-10.1	%
Total deposits		2,724,580			2,935,239			2,979,080		-7.2	%	-8.5	%
FHLB advances		466,424			473,086			472,811		-1.4	%	-1.4	%
Subordinated debentures		67,042			37,624			37,624		78.2	%	78.2	%
Operating lease liability		13,878			13,973			13,315		-0.7	%	4.2	%
Other liabilities		13,733			13,287			15,512		3.4	%	-11.5	%
Total Liabilities		3,285,657			3,473,209			3,518,342		-5.4	%	-6.6	%
STOCKHOLDERS' EQUITY
Preferred stock: $0.01 par value, 10,000 shares authorized		-			-			-		-		-
Additional paid-in capital preferred stock		29,763			28,403			25,043		4.8	%	18.8	%
Common stock: no par value, 40,000 shares authorized		-			-			-		0.0	%	0.0	%
Additional paid-in capital common stock		200,605			200,162			198,923		0.2	%	0.8	%
Retained earnings		141,770			138,309			135,927		2.5	%	4.3	%
Accumulated other comprehensive loss		(5,678	)		(7,795	)		(7,491	)	-27.2	%	-24.2	%
Treasury stock, at cost		(38,347	)		(38,347	)		(38,347	)	0.0	%	0.0	%
Total Stockholders' Equity		328,113			320,732			314,055		2.3	%	4.5	%
Total Liabilities and Stockholders' Equity	$	3,613,770		$	3,793,941		$	3,832,397		-4.7	%	-5.7	%
Outstanding common shares		17,048			17,029			16,904

	Three Months Ended September 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)	$	3,159,574		$	42,857	5.43	%		$	3,330,446		$	44,133	5.30	%
Investment Securities		96,893			1,297	5.35	%			96,723			1,262	5.22	%
Interest-earning assets(6)		322,154			4,472	5.55	%			270,729			3,672	5.43	%
Total Interest-earning assets		3,578,621			48,626	5.44	%			3,697,898			49,067	5.31	%
Non-interest-earning assets		124,254								127,780
Total assets	$	3,702,875							$	3,825,678
Interest-bearing liabilities:
Interest-bearing demand accounts	$	553,506		$	2,509	1.81	%		$	628,804		$	2,244	1.43	%
Money market accounts		369,329			3,177	3.44	%			331,813			2,311	2.79	%
Savings accounts		258,158			146	0.23	%			300,484			182	0.24	%
Certificates of Deposit		1,123,960			13,670	4.86	%			1,024,900			10,923	4.26	%
Total interest-bearing deposits		2,304,953			19,502	3.38	%			2,286,001			15,660	2.74	%
Borrowed funds		518,385			6,079	4.69	%			660,773			7,727	4.68	%
Total interest-bearing liabilities		2,823,338			25,581	3.62	%			2,946,774			23,387	3.17	%
Non-interest-bearing liabilities		557,754								577,963
Total liabilities		3,381,092								3,524,737
Stockholders' equity		321,783								300,941
Total liabilities and stockholders' equity	$	3,702,875							$	3,825,678
Net interest income				$	23,045							$	25,680
Net interest rate spread(1)						1.82	%							2.13	%
Net interest margin(2)						2.58	%							2.78	%
(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.
(6) Includes Federal Home Loan Bank of New York Stock.

	Nine Months Ended September 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)	$	3,235,048	$	130,615	5.38	%		$	3,271,018	$	125,666	5.12	%
Investment Securities		96,136		3,880	5.38	%			102,143		3,822	4.99	%
Interest-earning assets(6)		307,726		12,861	5.57	%			252,999		9,168	4.83	%
Total Interest-earning assets		3,638,910		147,356	5.40	%			3,626,161		138,656	5.10	%
Non-interest-earning assets		124,401							123,262
Total assets	$	3,763,311						$	3,749,422
Interest-bearing liabilities:
Interest-bearing demand accounts	$	553,363	$	7,018	1.69	%		$	684,691	$	6,242	1.22	%
Money market accounts		369,542		9,274	3.35	%			325,923		5,657	2.31	%
Savings accounts		267,900		464	0.23	%			311,733		443	0.19	%
Certificates of Deposit		1,188,454		43,224	4.85	%			926,684		25,849	3.72	%
Total interest-bearing deposits		2,379,259		59,980	3.36	%			2,249,032		38,192	2.26	%
Borrowed funds		513,193		17,549	4.56	%			585,028		20,324	4.63	%
Total interest-bearing liabilities		2,892,452		77,529	3.57	%			2,834,060		58,516	2.75	%
Non-interest-bearing liabilities		551,919							618,037
Total liabilities		3,444,371							3,452,097
Stockholders' equity		318,940							297,326
Total liabilities and stockholders' equity	$	3,763,311						$	3,749,422
Net interest income			$	69,827						$	80,140
Net interest rate spread(1)					1.83	%						2.35	%
Net interest margin(2)					2.56	%						2.95	%
(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.
(6) Includes Federal Home Loan Bank of New York Stock.

	Financial Condition data by quarter
	Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
	(In thousands, except book values)
Total assets	$	3,613,770		$	3,793,941		$	3,849,195		$	3,832,397		$	3,812,120
Cash and cash equivalents		243,123			326,870			352,448			279,523			251,916
Securities		108,302			94,965			96,189			96,862			94,444
Loans receivable, net		3,087,914			3,161,925			3,226,877			3,279,708			3,285,727
Deposits		2,724,580			2,935,239			2,991,659			2,979,080			2,819,556
Borrowings		533,466			510,710			510,573			510,435			660,298
Stockholders’ equity		328,113			320,732			320,131			314,055			303,636
Book value per common share1	$	17.50		$	17.17		$	17.24		$	17.10		$	16.79
Tangible book value per common share2	$	17.19		$	16.86		$	16.93		$	16.79		$	16.48
	Operating data by quarter
	Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
	(In thousands, except for per share amounts)
Net interest income	$	23,045		$	23,639		$	23,143		$	23,922		$	25,680
Provision for credit losses		2,890			2,438			2,088			1,927			2,205
Non-interest income (loss) income		3,127			(3,234	)		2,109			3,228			1,406
Non-interest expense		13,929			13,987			14,838			16,568			15,463
Income tax expense		2,685			1,163			2,460			2,593			2,707
Net income	$	6,668		$	2,817		$	5,866		$	6,062		$	6,711
Net income per diluted share	$	0.36		$	0.14		$	0.32		$	0.35		$	0.39
Common Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
	Financial Ratios(3)
	Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
Return on average assets		0.72	%		0.30	%		0.61	%		0.63	%		0.70	%
Return on average stockholders' equity		8.29	%		3.52	%		7.46	%		7.91	%		8.92	%
Net interest margin		2.58	%		2.60	%		2.50	%		2.57	%		2.78	%
Stockholders' equity to total assets		9.08	%		8.45	%		8.32	%		8.19	%		7.97	%
Efficiency Ratio4		53.22	%		68.55	%		58.76	%		61.02	%		57.09	%
	Asset Quality Ratios
	Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
	(In thousands, except for ratio %)
Non-Accrual Loans	$	35,330		$	32,448		$	22,241		$	18,783		$	7,931
Non-Accrual Loans as a % of Total Loans		1.13	%		1.01	%		0.68	%		0.57	%		0.24	%
ACL as % of Non-Accrual Loans		98.2	%		108.6	%		155.4	%		178.9	%		402.4	%
Individually Analyzed Loans		66,048			60,798			65,731			54,019			35,868
Classified Loans		98,316			87,033			97,739			85,727			42,807
(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
	Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
	(In thousands)
Residential one-to-four family	$	241,050		$	242,706		$	244,762		$	248,295		$	251,845
Commercial and multi-family		2,296,886			2,340,385			2,392,970			2,434,115			2,444,887
Construction		146,471			173,207			180,975			192,816			185,202
Commercial business		371,365			375,355			378,073			372,202			370,512
Home equity		67,566			66,843			65,518			66,331			66,046
Consumer		2,309			2,053			2,847			3,643			3,647
	$	3,125,647		$	3,200,549		$	3,265,145		$	3,317,402		$	3,322,139
Less:
Deferred loan fees, net		(3,040	)		(3,381	)		(3,705	)		(4,086	)		(4,498	)
Allowance for credit losses		(34,693	)		(35,243	)		(34,563	)		(33,608	)		(31,914	)
Total loans, net	$	3,087,914		$	3,161,925		$	3,226,877		$	3,279,708		$	3,285,727
	Non-Accruing Loans in Portfolio by quarter
	Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
	(In thousands)
Residential one-to-four family	$	410		$	350		$	429		$	270		$	178
Commercial and multi-family		27,693			27,796			12,627			8,684			3,267
Construction		586			586			3,225			4,292			2,886
Commercial business		6,498			3,673			5,916			5,491			1,600
Home equity		123			43			44			46			-
Consumer		20			-			-			-			-
Total:	$	35,330		$	32,448		$	22,241		$	18,783		$	7,931
	Distribution of Deposits by quarter
	Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
	(In thousands)
Demand:
Non-Interest Bearing	$	528,089		$	523,816		$	531,112		$	536,264		$	523,912
Interest Bearing		527,862			549,239			552,295			564,912			574,577
Money Market		366,655			371,689			361,791			370,934			348,732
Sub-total:	$	1,422,606		$	1,444,744		$	1,445,198		$	1,472,110		$	1,447,221
Savings and Club		255,115			258,680			272,051			284,273			293,962
Certificates of Deposit		1,046,859			1,231,815			1,274,410			1,222,697			1,078,373
Total Deposits:	$	2,724,580		$	2,935,239		$	2,991,659		$	2,979,080		$	2,819,556

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
	Tangible Book Value per Share
	Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
	(In thousands, except per share amounts)
Total Stockholders' Equity	$	328,113		$	320,732		$	320,131		$	314,055		$	303,636
Less: goodwill		5,253			5,253			5,253			5,253			5,253
Less: preferred stock		29,763			28,403			27,733			25,043			20,783
Total tangible common stockholders' equity		293,097			287,076			287,145			283,759			277,601
Shares common shares outstanding		17,048			17,029			16,957			16,904			16,848
Book value per common share	$	17.50		$	17.17		$	17.24		$	17.10		$	16.79
Tangible book value per common share	$	17.19		$	16.86		$	16.93		$	16.79		$	16.48
	Efficiency Ratios
	Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
	(In thousands, except for ratio %)
Net interest income	$	23,045		$	23,639		$	23,143		$	23,922		$	25,680
Non-interest income (loss)		3,127			(3,234	)		2,109			3,228			1,406
Total income		26,172			20,405			25,252			27,150			27,086
Non-interest expense		13,929			13,987			14,838			16,568			15,463
Efficiency Ratio		53.22	%		68.55	%		58.76	%		61.02	%		57.09	%

FAQ

What was BCB Bancorp's (BCBP) net income for Q3 2024?

BCB Bancorp (BCBP) reported a net income of $6.7 million for the third quarter of 2024.

What was the earnings per diluted share for BCBP in Q3 2024?

The earnings per diluted share for BCB Bancorp (BCBP) in the third quarter of 2024 were $0.36.

Did BCB Bancorp (BCBP) declare a dividend for Q3 2024?

Yes, BCB Bancorp (BCBP) declared a regular quarterly cash dividend of $0.16 per share, payable on November 15, 2024, to shareholders of record on November 1, 2024.

What was the net interest margin for BCBP in Q3 2024?

The net interest margin for BCB Bancorp (BCBP) was 2.58% for the third quarter of 2024.

How did BCB Bancorp's (BCBP) total deposits change in Q3 2024?

BCB Bancorp's (BCBP) total deposits decreased to $2.725 billion at September 30, 2024, compared to $2.935 billion at June 30, 2024.