Form 8-K - Current report

BCB BANCORP INC false 0001228454 0001228454 2024-10-18 2024-10-18

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 18, 2024

 

 

BCB BANCORP, INC.

(Exact name of Registrant as Specified in its Charter)

 

 

 

New Jersey		0-50275		26-0065262
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

104-110 Avenue C
Bayonne, New Jersey				07002
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s telephone number, including area code: [phone]

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, no par value		BCBP		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

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Item 2.02.

Results of Operations and Financial Condition.

On October 18, 2024, BCB Bancorp, Inc. (the “Company”), the holding company for BCB Community Bank, issued a press release (the “Press Release”) reporting the Company’s financial results at and for the quarter and nine-months ended September 30, 2024. A copy of the Press Release and the accompanying financial statements are attached hereto as Exhibit 99.1 and are incorporated by reference into this Item 2.02.

The information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

 

Item 8.01.

Other Events.

The Press Release also announced that the Company’s board of directors declared a $0.16 per share regular quarterly cash dividend. The dividend is payable on November 15, 2024 to common shareholders of record at the close of business on November 1, 2024.

 

Item 9.01.

Financial Statements and Exhibits.

 

(d)

Exhibits.

The following Exhibits are attached as part of this report.

 

Exhibit Number		Description
99.1		Press Release, dated October 18, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

2

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

						BCB BANCORP, INC.
DATE: October 18, 2024				By:		/s/ Jawad Chaudhry
						Jawad Chaudhry
						Executive Vice President and Chief Financial Officer
						(Duly Authorized Representative)

 

3

Exhibit 99.1

 

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

BAYONNE, N.J., October 18, 2024 — 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.

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 2

 

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.

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 3

 

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.

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 4

 

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.

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 5

 

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.

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 6

 

		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
		(In thousands, except per share amounts, Unaudited)
Interest and dividend income:
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	%

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 7

 

		Statements of Income - Nine Months Ended,
		September 30, 2024				September 30, 2023				September 30, 2024 vs. September 30, 2023
		(In thousands, except per share amounts, Unaudited)
Interest and dividend income:
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	%

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 8

 

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
		(In Thousands, Unaudited)
ASSETS
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

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 9

 

		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.

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 10

 

		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.

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 11

 

		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.”

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 12

 

		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

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BCBP Reports Third Quarter 2024 Earnings

October 18, 2024

Page 13

 

		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	%

Document and Entity Information	Oct. 18, 2024
Cover [Abstract]
Entity Registrant Name	BCB BANCORP INC
Amendment Flag	false
Entity Central Index Key	0001228454
Document Type	8-K
Document Period End Date	Oct. 18, 2024
Entity Incorporation State Country Code	NJ
Entity File Number	0-50275
Entity Tax Identification Number	26-0065262
Entity Address, Address Line One	104-110 Avenue C
Entity Address, City or Town	Bayonne
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07002
City Area Code	(201)
Local Phone Number	823-0700
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, no par value
Trading Symbol	BCBP
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

---