BCB BANCORP INC

Previous wording

The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher tariffs imposed by the Trump administration, higher inflation levels, current 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. Also significant are our ability to manage liquidity and capital in a rapidly changing and unpredictable market and our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs. 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:

Current wording

The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of the Federal budget stalemate in Congress, higher tariffs imposed by the Trump administration, higher inflation levels, current 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. Also significant are our ability to manage liquidity and capital in a rapidly changing and unpredictable market and our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs. 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:

Previous wording

BCB Bancorp, Inc. is a New Jersey corporation, and is the holding company parent of BCB Community Bank, or the Bank. The Company has not engaged in any significant business activity other than owning all of the outstanding common stock of BCB Community Bank. Our executive office is located at 104-110 Avenue C, Bayonne, New Jersey 07002. At June 30, 2025, we had $3.380 billion in consolidated assets, $2.662 billion in deposits and $315.7 million in consolidated stockholders’ equity.

Current wording

BCB Bancorp, Inc. is a New Jersey corporation, and is the holding company parent of BCB Community Bank, or the Bank. The Company has not engaged in any significant business activity other than owning all of the outstanding common stock of BCB Community Bank. Our executive office is located at 104-110 Avenue C, Bayonne, New Jersey 07002. At September 30, 2025, we had $3.353 billion in consolidated assets, $2.687 billion in deposits and $318.5 million in consolidated stockholders’ equity.

Previous wording

See further discussion of this critical accounting estimate in Note 7 of this Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31,2024.

Current wording

See further discussion of this critical accounting estimate in Notes 2 and 7 of this Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31,2024.

Previous wording

Total assets decreased by $218.7 million, or 6.1 percent, to $3.380 billion at June 30, 2025, from $3.599 billion at December 31, 2024. The decrease in total assets was mainly related to a decrease in net loans and cash and cash equivalents.

Current wording

Total assets decreased by $246.0 million, or 6.8 percent, to $3.353 billion at September 30, 2025, from $3.599 billion at December 31, 2024. The decrease in total assets was mainly related to a decrease in net loans and cash and cash equivalents.

Previous wording

Total cash and cash equivalents decreased by $110.4 million, or 34.8 percent, to $206.9 million at June 30, 2025, from $317.3 million at December 31, 2024. The decrease in cash was primarily due to the reduction of the Bank’s exposure to wholesale funding by paying down high cost brokered deposits and FHLB advances.

Current wording

Total cash and cash equivalents decreased by $67.7 million, or 21.3 percent, to $249.6 million at September 30, 2025, from $317.3 million at December 31, 2024. The decrease in cash was primarily due to the reduction of the Bank’s exposure to wholesale funding by paying down high cost brokered deposits and FHLB advances.

Previous wording

Loans receivable, net, decreased by $135.8 million, or 4.5 percent, to $2.860 billion at June 30, 2025, from $2.996 billion at December 31, 2024. Total loan decreases during the period included decreases totaling $125.0 million in commercial real estate and multi-family loans, construction loans, commercial business, business express and 1-4 family residential loans. The allowance for credit losses increased $15.9 million to $50.7 million, or 49.8 percent of non-accruing loans and 1.74 percent of gross loans, at June 30, 2025, as compared to an allowance for credit losses of $34.8 million, or 77.8 percent of non-accruing loans and 1.15 percent of gross loans, at December 31, 2024.

Current wording

Loans receivable, net, decreased by $207.3 million, or 6.9 percent, to $2.789 billion at September 30, 2025, from $2.996 billion at December 31, 2024. Total loan decreases during the period included decreases totaling $111.3 million in commercial real estate and multi-family loans, $24.6 million in construction loans, $62.8 million in commercial business, and $5.9 million in 1-4 family residential loans and home equity loans. The allowance for credit losses increased $3.0 million to $37.8 million, or 40.4 percent of non-accruing loans and 1.34 percent of gross loans, at September 30, 2025, as compared to an allowance for credit losses of $34.8 million, or 77.8 percent of non-accruing loans and 1.15 percent of gross loans, at December 31, 2024.

Previous wording

Total investment securities increased by $28.8 million, or 25.9 percent, to $140.0 million at June 30, 2025, from $111.2 million at December 31, 2024, representing current year purchases.

Current wording

Total investment securities increased by $14.1 million, or 12.7 percent, to $125.3 million at September 30, 2025, from $111.2 million at December 31, 2024, representing current year purchases, net of investments called during 2025.

Previous wording

Deposits decreased by $89.3 million, or 3.2 percent, to $2.662 billion at June 30, 2025, from $2.751 billion at December 31, 2024. Brokered deposits and transaction accounts decreased $119.4 million and $29.6 million, respectively, and were offset by increases in money market accounts, certificate of deposit accounts and savings accounts which totaled $61.7 million.

Current wording

Deposits decreased by $63.5 million, or 2.3 percent, to $2.687 billion at September 30, 2025, from $2.751 billion at December 31, 2024. Brokered deposits and transaction accounts decreased $68.5 million and $59.8 million, respectively, and were offset by increases in money market accounts, certificate of deposit accounts and savings accounts which totaled $64.8 million.

Previous wording

Debt obligations decreased by $119.6 million to$378.7 millionat June 30, 2025 from $498.3 million at December 31, 2024, due to maturities and paydowns of our FHLB advances. The weighted average interest rate of FHLB advances was 4.18 percent at June 30, 2025 and 4.35 percent at December 31, 2024. The weighted average maturity of FHLB advances as of June 30, 2025 was 0.79 years. The interest rate of our subordinated debt balances was 9.25 percent at June 30, 2025 and at December 31, 2024.

Current wording

Debt obligations decreased by $174.4 million to$323.9 millionat September 30, 2025 from $498.3 million at December 31, 2024, due to maturities and paydowns of our FHLB advances. The weighted average interest rate of FHLB advances was 4.09 percent at September 30, 2025 and 4.35 percent at December 31, 2024. The weighted average maturity of FHLB advances as of September 30, 2025 was 0.61 years. The interest rate of our subordinated debt balances was 9.25 percent at September 30, 2025 and December 31, 2024.

Previous wording

Stockholders’ equity decreased by $8.2 million, or 2.5 percent, to $315.7 million at June 30, 2025, from $323.9 million at December 31, 2024. The decrease was attributable to the decrease in retained earnings of $11.2 million, or 7.9 percent, to $130.6 million at June 30, 2025 from $141.9 million at December 31, 2024 caused largely by the $8.3 million loss in the first quarter of 2025. Offsetting this were increases totaling $3.0 million consisting of a decrease in accumulated other comprehensive loss due to rate improvements and additional paid in capital on stock purchased during the quarter.

Current wording

Stockholders’ equity decreased by $5.5 million, or 1.7 percent, to $318.5 million at September 30, 2025, from $323.9 million at December 31, 2024. The decrease was attributable to the decrease in retained earnings of $10.2 million, or 7.2 percent, to $131.7 million at September 30, 2025 from $141.9 million at December 31, 2024 caused largely by regular dividend payments and the $8.3 million loss in the first quarter of 2025 due to additions to the allowance for credit losses, which resulted in a $498,000 net loss for the nine month period. Offsetting this was a decrease in accumulated other comprehensive loss and an increase in additional paid in capital.

Previous wording

Net income was $3.6 million for the quarter ended June 30, 2025 and $2.8 million for the quarter ended June 30, 2024. This increase was, primarily, driven by a $4.9 million loss on sale of loans that depressed the earnings in the second quarter of 2024. This was offset, somewhat, by the Bank recording $2.5 million more in loan loss provisioning, $1.3 million more in non-interest expense and $537 thousand less in net interest income in the second quarter of 2025 as compared with the second quarter of 2024.

Current wording

Net income was $4.3 million for the quarter ended September 30, 2025, and $6.7 million for the quarter ended September 30, 2024. This decrease was due to $1.2 million more in credit loss provisioning and $2.6 million more in non-interest expense for the third quarter of 2025 compared to the third quarter of 2024. This was offset by $1.1 million less in income tax provisioning and $666 thousand more in net interest income for the same period.

Previous wording

Interest expense decreased by $5.7 million to $20.1 million for the second quarter of 2025 from $25.8 million for the second quarter of 2024. The decrease resulted from a 40 basis point decrease in the average rate paid on interest-bearing liabilities to 3.16 percent for the second quarter of 2025 from 3.56 percent for the second quarter of 2024, while the average balance of interest-bearing liabilities decreased by $348.5 million to $2.549 billion for the second quarter of 2025 from $2.897 billion for the second quarter of 2024.

Current wording

Interest expense decreased by $6.3 million to $19.3 million for the third quarter of 2025 from $25.6 million for the third quarter of 2024. The decrease resulted from a decrease in the average rate paid on interest-bearing liabilities of 56 basis points to 3.06 percent for the third quarter of 2025 from 3.62 percent for the third quarter of 2024, while the average balance of interest-bearing liabilities decreased by $318.2 million to $2.505 billion for the third quarter of 2025 from $2.823 billion for the third quarter of 2024.

Previous wording

The net interest margin was 2.80 percent for the second quarter of 2025 compared to 2.60 percent for the second quarter of 2024. The increase in the net interest margin compared to the second quarter of 2024 was the result of a decrease in the cost of interest-bearing liabilities, offset by a decrease in the yield on interest-earning assets.

Current wording

The net interest margin increased to 2.88 percent for the third quarter of 2025 compared to 2.58 percent for the third quarter of 2024. The increase in the net interest margin compared to the third quarter of 2024 was the result of a decrease in the cost of interest-bearing liabilities, offset by a decrease in the yield on interest-earning assets.

Previous wording

During the second quarter of 2025, the Company recognized $5.7 million in net charge-offs compared to $1.8 million in net charge-offs in the second quarter of 2024. The Bank had non-accrual loans totaling $101.8 million, or 3.50 percent of gross loans, at June 30, 2025 as compared to $44.7 million, or 1.48 percent of gross loans, at December 31, 2024. The allowance for credit losses on loans was $50.7 million, or 1.74 percent of gross loans, at June 30, 2025, and $34.8 million, or 1.15 percent of gross loans, at December 31, 2024. The provision for credit losses was $4.9 million for the second quarter of 2025 compared to $2.4 million for the second quarter of 2024. Management believes that the allowance for credit losses on loans was adequate at June 30, 2025 and December 31, 2024.

Current wording

During the third quarter of 2025, the Company recognized $16.9 million in net charge-offs compared to $3.4 million in net charge-offs in the third quarter of 2024. A net charge-off of $12.7 million was recorded in connection with the elimination of previously established specific reserves for a cannabis-related relationship, as initially disclosed in a Form 8-K filed in the first quarter of 2025. These specific reserves were charged off, and the associated relationship was reclassified to Other Real Estate Owned during the current quarter. The Bank had non-accrual loans totaling $93.5 million, or 3.31 percent of gross loans, at September 30, 2025, as compared to $44.7 million, or 1.48 percent of gross loans, at December 31, 2024. The allowance for credit losses on loans was $37.8 million, or 1.34 percent of gross loans, at September 30, 2025, and $34.8 million, or 1.15 percent of gross loans, at December 31, 2024. The provision for credit losses was $4.1 million for the third quarter of 2025 compared to $2.9 million for the third quarter of 2024. Management believes that the allowance for credit losses on loans was adequate at September 30, 2025 and December 31, 2024.

Previous wording

Non-interest income increased by $5.3 million to $2.1 million for the second quarter of 2025 from a loss of $3.2 million in the second quarter of 2024. The increase in total non-interest income was mainly related to a $4.9 million loss on the sale of loans in the second quarter of 2024 and increases in fee and service charge income, BOLI income, and gains on equity securities of $186 thousand, $115 thousand, and $114 thousand, respectively.

Current wording

Non-interest income decreased by $382 thousand to $2.7 million for the third quarter of 2025 from $3.1 million in the third quarter of 2024. The decrease in total non-interest income was mainly related to $782 thousand less in realized gains on equity investments and was partially offset by an increase in BOLI income of $279 thousand.

Previous wording

Non-interest expense increased by $1.3 million, or 9.2 percent, to $15.3 million for the second quarter of 2025 when compared to non-interest expense of $14.0 million for the second quarter of 2024. The increase in these expenses for the second quarter of 2025 was primarily driven by higher salaries and employee benefits and higher data processing and communication costs which increased $721 thousand and $374 thousand, respectively.

Current wording

Non-interest expense increased by $2.6 million, or 19.0 percent, to $16.6 million for the third quarter of 2025 when compared to non-interest expense of $13.9 million for the third quarter of 2024. The increase in these expenses for the third quarter of 2025 was primarily driven by salaries and employee benefits, data processing and communication costs and regulatory assessment fees which increased $1.2 million, $366 thousand and $318 thousand, respectively.

Previous wording

The income tax provision increased by $292 thousand, to an income tax provision of $1.5 million for the second quarter of 2025 when compared to a $1.2 million provision for the second quarter of 2024. The consolidated effective tax rate was 29.0 percent forthe second quarter of 2025 compared to 29.2 percent for the second quarter of 2024.

Current wording

The income tax provision decreased by $1.1 million, to $1.5 million for the third quarter of 2025 from $2.7 million for the third quarter of 2024. The consolidated effective tax rate was 26.6 percent forthe third quarter of 2025 compared to 28.7 percent for the third quarter of 2024.

Previous wording

Results of Operations Comparison for Six Months Ended June 30, 2025 and 2024

Current wording

Results of Operations Comparison for Nine Months Ended September 30, 2025 and 2024

Previous wording

Net income decreased by $13.4 million, or 154.8 percent, to a loss of $4.8 million for the first six months of 2025 from earnings of $8.7 million for the first six months of 2024. The decrease in net income was driven, primarily, by provisioning for loan loss expense being $21.2 million higher, net interest income being $1.7 million lower, and non-interest expense being $1.1 million higher. This was partly offset by the income tax provision being lower by $5.6 million and non-interest income being higher by $5.0 million.

Current wording

Net income decreased by $15.8 million to a loss of $498 thousand for the first nine months of 2025 from earnings of $15.4 million for the first nine months of 2024. The decrease in net income was driven, primarily, by provisioning for loan loss expense being $22.4 million higher, non-interest expense being $3.7 million higher and net interest income being $1.0 million lower. This was partly offset by the income tax provision being lower by $6.7 million and non-interest income being higher by $4.6 million.

Previous wording

Net interest income was $1.7 million lower as interest income decreased by $11.4 million, or 11.5 percent, to $87.4 million for the first six months of 2025, from $98.7 million for the first six months of 2024, and interest expense decreased $9.7 million for the same period. The average balance of interest-earning assets decreased $294.5 million, or 8.0 percent, to $3.375 billion for the first six months of 2025, from $3.669 billion for the first six months of 2024, while the average yield decreased 16 basis points to 5.22 percent from 5.38 percent for the comparable period. The decrease in interest earning assets was primarily a result of loans and interest-bearing bank balances declining $309.2 million and $15.2 million, respectively. This was offset by an increase in investment securities of $29.9 million. Interest expense decreased by $9.7 million, or 18.6 percent, to $42.3 million for 2025, from $51.9 million for 2024. This decrease resulted primarily from a $9.2 million decrease in the interest paid on deposits. Interest on borrowed money also declined by $506 thousand for the same period. Average deposits declined $247.2 million, and the average rate paid on deposits declined 44 basis points to 2.91 percent. Average borrowings decreased $55.5 million for the same period. The average rate paid on borrowings increased by 37 basis points to 4.86 percent.

Current wording

Net interest income was $1.0 million lower as interest income decreased by $16.9 million, or 11.5 percent, to $130.4 million for the first nine months of 2025, from $147.4 million for the first nine months of 2024. The average balance of interest-earning assets decreased $301.0 million, or 8.3 percent, to $3.338 billion for the first nine months of 2025, from $3.639 billion for the first nine months of 2024, while the average yield decreased 18 basis points to 5.22 percent from 5.40 percent for the comparable period. The decrease in interest earning assets was primarily a result of loans and interest-bearing bank balances declining $299.4 million and $34.0 million, respectively. This was offset by an increase in investment securities of $32.4 million. Offsetting the increase in interest income, interest expense decreased by $15.9 million, or 20.5 percent, to $61.6 million for 2025, from $77.5 million for 2024. This decrease resulted primarily from interest on deposits which decreased $13.4 million. Interest on borrowed money declined $2.5 million for the same period. Average deposits declined $208.0 million and the average rate paid on deposits declined 49 basis points to 2.87 percent from 3.36 percent. Average borrowed funds decreased $100.1 million for the same period. The average rate paid on borrowings increased by 30 basis points to 4.86 percent.

Previous wording

Net interest margin was 2.70 percent for the first six months of 2025, compared to 2.55 percent for the first six months of 2024. The increase in the net interest margin compared to the prior period was the result of a decrease in the cost of the Company’s interest-bearing liabilities, by 30 basis points to 3.25 percent. Offsetting that, somewhat, was a decrease in the rate earned on earning assets, which decreased 16 basis points to 5.22 percent.

Current wording

Net interest margin increased to 2.76 percent for the first nine months of 2025, compared to 2.56 percent for the first nine months of 2024. The increase in the net interest margin compared to the prior period was the result of a decrease in the cost of the Company’s interest-bearing liabilities by 39 basis points to 3.19 percent. Offsetting that, somewhat, was a decrease in the rate earned on earning assets, which decreased 18 basis points to 5.22 percent.

Previous wording

During the first six months of 2025, the Company experienced $9.9 million in net charge offs compared to $2.9 million in net charge offs for the same period in 2024. The provision for credit losses increased from $4.5 million during the first six months of 2024 to $25.7 million for the first six months of 2025, primarily driven by a previously reported $13.7 million specific reserve tied to a $34.2 million loan in the cannabis sector. The Company’s cannabis portfolio had a balance of $103.0 million as of the end of the second quarter. The cannabis industry is facing operating challenges and the Bank’s cannabis portfolio poses an increased amount of credit risk. The portfolio has some larger relationships that could require material reserves in future periods if the operating headwinds persist.

Current wording

During the first nine months of 2025, the Company experienced $26.8 million in net charge offs compared to $6.3 million in net charge offs for the same period in 2024. The provision for credit losses increased from $7.4 million during the first nine months of 2024 to $29.8 million for the first nine months of 2025, primarily driven by a previously reported $13.7 million specific reserve tied to a $34.2 million loan in the cannabis sector. During the third quarter of 2025, this loan was charged off and the underlying collateral is now reported on the balance sheet as other real estate owned. The Company’s cannabis loan portfolio had a balance of $69.1 million as of the end of the third quarter of 2025. The cannabis industry is facing operating challenges and the Bank’s cannabis loan portfolio, largely secured by real estate, poses an increased amount of credit risk. The portfolio has some larger relationships that could require material reserves in future periods if the operating headwinds persist.

Previous wording

Non-interest income increased by $5.0 million for the first six months of 2025 from a loss of $1.1 million for the first six months of 2024. In 2024, the Bank recorded a loss on sale of loans of $4.8 million. Fees and service charges and income on BOLI also increased $144 thousand and $48 thousand for the same period.

Current wording

Non-interest income increased by $4.6 million to $6.6 million for the first nine months of 2025 from $2.0 million for the first nine months of 2024. In 2024, the Bank recorded a loss on sale of loans of $4.8 million. BOLI and fees and service charges also increased $327 thousand and $259 thousand in 2025. Offsetting this was a decrease in 2025 on realized/unrealized income on equity investments of $913 thousand.

Previous wording

Non-interest expense increased by $1.1 million, or 3.8 percent, to $29.9 million for the first six months of 2025 from $28.8 million for the same period in 2024. The increase in operating expenses for 2025 was driven primarily by an increase in salaries and employee benefits which increased $1.1 million for the first six months of 2025 compared to the same period in 2024. Data processing costs and professional fees also increased, by $365 thousand and $260 thousand, respectively. Offsetting this was a decrease in regulatory fees and assessments of $582 thousand.

Current wording

Non-interest expense increased by $3.7 million, or 8.8 percent, to $46.5 million for the first nine months of 2025 from $42.8 million for the same period in 2024. The increase in operating expenses for 2025 was driven primarily by salaries and employee benefits which increased $2.3 million for the first nine months of 2025 compared to the same period in 2024 largely for the reasons set for the above in the three month comparison. Data processing costs and professional fees also increased by $731 thousand and $442 thousand, respectively.

Previous wording

The income tax provision decreased by $5.6 million or 153.3 percent, to an income tax credit of $1.9 million for the first six months of 2025 when compared to a $3.6 million provision for the same period in 2024. The decrease in the income tax provision was a result of the lower taxable income for the six months ended June 30,

Current wording

The income tax provision decreased by $6.7 million to an income tax benefit of $386 thousand for the first nine months of 2025 when compared to a $6.3 million provision for the same period in 2024. The decrease in the income tax provision was a result of the lower taxable income for the nine months ended September 30, 2025 compared to the same period in 2024.

Previous wording

At June 30, 2025 and December 31, 2024, the Company had $30 million and $0, respectively, in overnight borrowings outstanding with the FHLB. The Company utilizes overnight borrowings from time to time to fund short-term liquidity needs. The Company had total outstanding borrowings of $378.7 million at June 30, 2025 ascompared to $498.3 million at December 31, 2024.

Current wording

At September 30, 2025 and December 31, 2024, the Company had no overnight borrowings outstanding with the FHLB. The Company utilizes overnight borrowings from time to time to fund short-term liquidity needs. The Company had total outstanding borrowings of $323.9 million at September 30, 2025 ascompared to $498.3 million at December 31, 2024.

Previous wording

At June 30, 2025, the Company had the ability to obtain additional funding of $226.6 million from the FHLB and $196.2 million from the Federal Reserve Bank Discount Window, utilizing unencumbered loan collateral. The Company expects to have sufficient funds available to meet current loan commitments in the normal course of business through typical sources of liquidity. Time deposits scheduled to mature in one year or less totaled $903.4 million at June 30, 2025. Based upon historical experience data, management estimates that a significant portion of such deposits will remain with the Company.

Current wording

At September 30, 2025, the Company had the ability to obtain additional funding of $200.3 million from the FHLB and $223.3 million from the Federal Reserve Bank Discount Window, utilizing unencumbered loan collateral. The Company expects to have sufficient funds available to meet current loan commitments in the normal course of business through typical sources of liquidity. Time deposits scheduled to mature in one year or less totaled $973.8 million at September 30, 2025. Based upon historical experience data, management estimates that a significant portion of such deposits will remain with the Company.

Previous wording

The Company also has $4.1 million of mandatory redeemable trust preferred securities outstanding. Effective September 18, 2023, the interest rate on these floating rate junior subordinated debentures adjusts quarterly based on the three-month CME Term SOFR, as adjusted by the spread adjustment of 0.26161%, plus 2.650%. The rate paid as of June 30, 2025 and 2024 was 7.222% and 8.251%, respectively. The trust preferred debenture became callable, at the Company’s option, on June 17, 2009, and quarterly thereafter.

Current wording

The Company also has $4.1 million of mandatory redeemable trust preferred securities outstanding. Effective September 18, 2023, the interest rate on these floating rate junior subordinated debentures adjusts quarterly based on the three-month CME Term SOFR, as adjusted by the spread adjustment of 0.26161%, plus 2.650%. The rate paid as of September 30, 2025 and 2024 was 6.935% and 7.853%, respectively. The trust preferred debenture became callable, at the Company’s option, on June 17, 2009, and quarterly thereafter.