BCB Bancorp (BCBP) investor relations material

Executive summary

• Leadership transition underway, with new CEO focused on a comprehensive review and restructuring of operations and credit portfolios.

• Reported net loss of $14.8 million for Q2 2026, compared to net income of $3.6 million in Q2 2025, primarily due to a $19.0 million provision for credit losses, $5.3 million goodwill impairment, and a $2.6 million loan sale loss.

• Total assets declined 4.9% to $3.118 billion at June 30, 2026, driven by reductions in net loans and cash.

• Board suspended all dividends and the dividend reinvestment plan to preserve capital and liquidity.

• Board approved reincorporation in Delaware and elimination of staggered board terms, pending shareholder approval.

Financial highlights

• Net interest margin improved to 3.03% in Q2 2026 from 2.80% in Q2 2025.

• Net interest income for Q2 2026 was $23.3 million, up slightly from $23.1 million in Q2 2025.

• Non-interest expense increased 45% to $22.1 million, including a $5.3 million goodwill impairment and higher salaries and severance.

• Allowance for credit losses on loans increased to $45.0 million (1.71% of gross loans) at June 30, 2026.

• Efficiency ratio rose sharply to 96.8% in Q2 2026 from 60.6% in Q2 2025.

Outlook and guidance

• Comprehensive credit portfolio review may result in further loan loss provisions or asset sales, with clarity on capital and portfolio disposition expected by Labor Day.

• Dividend payments remain suspended; reinstatement depends on return to profitability and improved capital.

• Elevated operating expenses expected for several quarters due to consulting and legal costs, with normalization targeted by 2027.

• Management is focused on strengthening the balance sheet and risk management, with continued review of commercial real estate exposures.

• The bank has ceased originating residential mortgage, home equity, and consumer loans due to unattractive risk-adjusted returns.