BCB Bancorp (BCBP) investor relations material

Executive summary

• Total assets decreased 6.1% to $3.38 billion at June 30, 2025, mainly due to lower net loans and cash balances.

• Net loss of $4.8 million for the first half of 2025, with Q2 net income of $3.6 million reversing an $8.3 million Q1 loss.

• Allowance for credit losses increased to $50.7 million, or 1.74% of gross loans, reflecting higher provisioning, especially for cannabis and Business Express portfolios.

• Deposits declined 3.2% to $2.66 billion, with brokered and transaction accounts down, partially offset by increases in other deposit categories.

• Stockholders' equity fell 2.5% to $315.7 million, mainly due to the Q1 loss and lower retained earnings.

Financial highlights

• Net interest margin rose to 2.80% in Q2 2025 from 2.60% in Q2 2024, with net interest income for Q2 at $23.1 million, down year-over-year.

• Interest income fell 12.7% to $43.2 million for Q2 2025; interest expense decreased by $5.7 million.

• Non-interest income rose by $5.3 million to $2.1 million in Q2 2025, mainly due to the absence of prior year loan sale losses.

• Non-interest expense increased 9.2% to $15.3 million in Q2 2025, driven by higher salaries and data processing costs.

• Provision for credit losses was $25.7 million for the first half of 2025, with $4.9 million in Q2, down from $20.8 million in Q1.

Outlook and guidance

• Management expects medium- to long-term profitability to improve as asset quality challenges are addressed.

• Aggressive provisioning and credit actions have depressed short-term results but are expected to support future stability.

• The cannabis loan portfolio, at $103 million, poses increased credit risk and may require further reserves if industry challenges persist.

• The company expects to have sufficient liquidity and funding to meet commitments through typical sources.