BCBP

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 8:45 a.m. ET President and Chief Executive Officer - Thomas O'Brien Chief Financial Officer - Jawad Chaudhry Operator: Thank you for standing by, and welcome to the BCB Bancorp, Inc. Second Quarter Earnings Conference Call. [Operator Instructions] I'd now like to turn the call over to our President and CEO, Thomas O'Brien. You may begin. Thomas O'Brien: Great. Thank you. Good morning, everyone, and welcome to the second quarter call, my first 60 days here at the bank. But before we begin, I need to encourage you to read in great exquisite detail the forward-looking statements that are always attached to our earnings releases and enjoy those. So anyhow, as you know, my first 60 days here, we were engaged in a major undertaking, but we're making good progress and consistent with what I said in my June 1 call, I think the schedule that I laid out at that time continues to be what we operate under. I'll make the assumption for today's call that we don't want to spend a lot of time on the typical ratios and earnings per share, and I'll allow time for questions. From my perspective, the highlights for the quarter concern a lot of the actions that you're probably already aware of, but we did suspend the dividends on the common and the preferred shares to both retain liquidity at the holding company and build capital at the bank. In the quarter, the margin had a little uptick of about 8 basis points, over 3% now. And you should note, I guess, the loss included about $5.3 million in a goodwill write-off. That's the only intangible on our balance sheet. The tangible book value impacted by the loss in the quarter and by the inclusion of the equity compensation that I received on joining. That's earned over 5 years, but accounted in the fully diluted shares on day 1. Some governance matters. The Board has determined to change the state of incorporation to Delaware and thereby, we will also eliminate the staggered terms of office for directors. Both of these are designed to bring BCB into a more contemporary corporate structure. The financial restructure work is ongoing. Our goal is to have everything done and announced wrapped up in the third quarter. We're taking a very critical look at each credit portfolio. And I'm sure you understand this level of transparency cannot be completed within 60 days. But we have continued to work and make progress. I'm sure you'll want to ask about capital. I can repeat what I said on June 1 that we'll always err on the side of keeping the bank well capitalized. That said, the bank continues to have a healthy capital base. The challenge, as I mentioned previously, is the absolute level of double leverage at the holding company. The credit issues in the bank really seem to stem from a period beginning maybe in 2020, and probably terminating towards the end of '23 or very early '24. The growth at that time was just too aggressive, and we get into some businesses that we didn't fully understand. In these 2 months, we have worked to double check risk ratings. And candidly, we've had some good surprises, a couple of negative ones. But on average, no huge changes. I can't predict the third quarter at this time, and I haven't gone to the Board with any capital recommendations or projections. I do think we will be in a position to have some meaningful clarity around Labor Day, and again, consistent with what I said in my expectations that I outlined on June 1. But the ultimate goal is to essentially cleanse the financial statements of the uncertainty that has existed for a few years. As I said at the outset, it's a major undertaking. We've got everybody in the bank working diligently on this, brought in a few consultants to help us with that process. And those of you that know me, you probably know some of the consultants that we brought in. But we're -- again, we're making very good progress. We want to be as thorough and comprehensive as we possibly can to, again, end this uncertainty and provide a clear path forward for -- going into the fourth quarter and most importantly, for the calendar and fiscal year '27. So with that, operator, it's probably best if we just take some questions here and start with those. Operator: [Operator Instructions] Your first question today comes from the line of Justin Crowley from Piper Sandler. Justin Crowley: With the provisioning and charge-offs this quarter, all coming in C&I, does that reflect just a partial review of that loan category? Or is that reflective of most of the work you need to do in derisking that book? Thomas O'Brien: Most of it was in what the bank is called business express loans. And then in C&I, there were a couple of loans on the books when I joined the bank that got charged off that were pure C&I. One of the challenges is we've had several loans that were, if not total write-offs, essentially total write-offs. So that's -- as you know, for banks, that's kind of unusual. So that's what you're seeing in the charge-offs in the quarter, both business express and I think it was 2 loans that were in the charge-off category that we're trying to see what we can recover, but it didn't look too promising at the moment we made the charge-off. So there's more to do on C&I and commercial real estate, we're actively going through right now. But we did -- on the business express, we did make a pretty comprehensive review. We did site visits, looked at FICO degradation, payment histories, pretty much everything else that gave us some insight into what is a relatively small individual loan portfolio, but it's been the source of a lot of loss over the last, I guess, the last 2 years. Jawad Chaudhry: Justin, this is Jawad. I would like to just add a little bit more detail. In terms of the reserve build that you saw in the second quarter, it was primarily done in the C&I loan portfolio, excluding the business express loans. So of the $19 million in loan loss provisioning that you saw, $16.7 million was dedicated to the C&I loan portfolio. And three things to note with respect to that portfolio as we cycle through 2026. Previously, we had shared that we were expecting a major recovery in the portfolio, and we no longer have that expectation. Secondly, the portfolio losses dipped in the first quarter to $0.8 million. But as Tom said, in the second quarter, they went up again to approximately $5.8 million. And thirdly, the new consultants that Tom brought in came to the portfolio and their feedback was used to analyze it under our qualitative framework. Justin Crowley: Okay. Got you. That's helpful. And so I guess as we kind of think about as you move over to the commercial real estate side, and I know it's going to be hard to put specific numbers around it now, but is there any way for you to help frame for us just what that review process could potentially mean for provisioning and reserve levels? Are there certain areas of that portfolio that you're most concerned about from a credit standpoint? Thomas O'Brien: Well, the areas that I would be concerned about -- as I learn as I go along. And honestly, some have been -- as I mentioned, I mean, some have been more pleasant surprises that the concerns weren't as large or well defined as I thought they were early on and a couple of negative surprises. It's hard for me to frame at this point what it would look like. The real estate portfolio, at least in my prior experience, has more -- I guess I'd say more value than a C&I loan that goes bad because of the nature of the collateral. And both Sterling and Sun National, we had kind of similar situations with the real estate portfolio. And they worked out predictably well. We sold some in those cases, worked out some, but the absolute level of the criticized and classified by it's down a little bit is still pretty shockingly high. So I think you have to take that into account also. Justin Crowley: And does that -- how much of that commercial real estate portfolio needs to be kind of reunderwritten? Is that not really reflected at all in kind of the criticized classified numbers we see as of June 30, recognizing that they still are pretty high? Thomas O'Brien: Yes, I would say the vast majority continue to be reviewed. Some of the larger ones have been done already, but the vast majority, we still have more analytics to go through. Justin Crowley: Okay. Got you. And then just pivoting, just on the expense side, if we exclude the goodwill charge and some of the severance you called out in the release, do you have a sense for what operating expenses could look like in the quarters ahead? Thomas O'Brien: I think they'll be elevated because we have -- as I mentioned, we have consultants. We have legal expenses. So hard for me to put a number on it now, but they'll be higher for a couple of quarters. And then if we're doing this right by '27, they should normalize. If we're not, they'll stay higher. But I think pretty confident we'll spend money wisely here to get the right answers. And then deal with more normal levels. But it's hard. Justin Crowley: Got you. And then maybe just one last one. I'll take a stab. But you mentioned shoring up capital in your prepared remarks, staying well capitalized. And even with the quarter's loss, just given the size of the balance sheet, capital levels are able to kind of stay flat. And I know there's a lot more work to do here, and you mentioned nothing decided. But just any early thoughts on to what extent you think you can continue accomplishing that through shrinking versus possibly pursuing a raise? Do you think the buffer now is sufficient and that there are enough levers to pull without having to tap the market for additional capital? Just anything there? And I realize it might not be a great answer at this stage. Thomas O'Brien: No, you're exactly right. There's no great answer. I just don't know. And as I said, it's complicated by the holding company structure, too. So I've got kind of look at every angle here. We're modeling a whole bunch of different things. Deferred tax assets have to come into play. So I just don't know. We'll do it. Whatever we need to do, we'll do it in a way that we get out the information as quickly as we can and as accurately try to have no surprises. Justin Crowley: I guess from what you've seen on the credit side so far, I mean, do you feel better or worse from when you first walked in the door in terms of how that could potentially necessitate that? Thomas O'Brien: Well, I've had good days and bad days. I would say, on average, my first couple of weeks, not so good. And the last couple of weeks, actually a little better. Really is getting to understand what's here. And some of the issues, frankly, were just poor pricing. Some were just poor structure. And as I said in the beginning, we got into businesses we didn't understand. And I would say in some of that context, we didn't structure or price things as smartly as we could have. And I think one of the lessons for any bank is you get into a new business, which is always fine, worth looking at, but you really need to talk to the experts and test the market and test your assumptions before you get too deep. And I would say we got a little too deep. Operator: Your next question comes from the line of Christopher Marinac from Brean Capital. Christopher Marinac: Tom, can you talk about when you will be taking the C&I charge-offs given the big C&I reserve that's now in place? Thomas O'Brien: Not so much. Jawad Chaudhry: The C&I reserve, Chris, this is Jawad. The C&I reserve that the build that you saw in the second quarter was primarily due to us attacking some high-risk factors using our qualitative framework. So they're not assigned specifically to some credits. It's just a general sense that the portfolio has shown an uptick in losses and preliminary feedback from the consultants that Tom brought in. We thought it was prudent to separate this portfolio as a separate entity when we review it under our qualitative framework. So we don't have those general reserves in the loan book currently attached to specific loans. To the extent that we do, we would not wait to take charge-offs. Thomas O'Brien: Just to add to what I mentioned earlier, and that is that we've had a couple of loans there that were charge-offs. There was virtually the entire loan charge-off. So that gives us some caution and part of the reason behind looking at the portfolio more holistically. Jawad Chaudhry: $30 million -- close to $30 million in total, if you look at the fourth quarter and what we did in the second quarter, loans charged off with 100% charge-offs. Christopher Marinac: So we will still see additional charge-offs in future quarters, I presume. I guess I'm just trying to calibrate the level of that or maybe that's once you get through Labor Day Tom, have a better sense. Thomas O'Brien: I think that's a better way to look at it because this is like, as I mentioned, it's a work in progress, and there's more to be done. Probably the smartest thing to do is to look at it comprehensively at the tail end. [indiscernible] 2 quarters at once. Christopher Marinac: Understood. And then what is your thought about the deposit opportunity? I know you've only been there a few months, but what's the opportunity to reposition deposits, get additional cost out on the funding side? Thomas O'Brien: Well, I think we've got -- as I said back in June, I mean, we've got an attractive footprint. We've been reasonably cautious, I think, the last year or 2 in terms of deposit pricing and outreach. But I think there's a reasonably good market for us to be successful in. That said, I don't want to grow the balance sheet right now until I know what our financial needs are. Operator: [Operator Instructions] Your next question comes from the line of David Konrad from KBW. David Konrad: Just a quick follow-up on Justin's questions, if I understood. In terms of the review, are you completely through the business express portfolio and largely through the C&I? Is that how I understood that? Thomas O'Brien: So I think it's safe to say we understand the business express a lot better than we did 60 days ago. The way we're looking at it is more on a portfolio basis because of the smaller size of the loans. And I think it's also safe to say that in the last, say, 4 quarters, the sludge rose to the top, and they accounted for a large amount of the charge-offs, and they were pretty significant. We are down to now a level that you would -- I think we can safely say represents a weak portfolio, but not the major charge-offs we've had. The level of kind of monthly or quarterly write-offs there have been moderated the last couple of months, but it tends to be binary. They either work to pay or they stop and there's nothing there. So that's a little bit of a challenge. C&I, I would say we are halfway through. Jawad Chaudhry: On the express loans, to share some hard numbers with you. If you look at 2025, the total losses in the portfolio were $10 million. 2024 probably had a similar amount of loss level. If you look at 2026, year-to-date, the losses came in at $1.1 million. So the loss experience has definitely moderated. The reserve coverage on the portfolio sits at 15%, but I would still caution and what Tom said, it is kind of a binary situation. Once the credit goes bad, it is loss. David Konrad: Got it. Right. And so by Labor Day, you hope to be through the rest of the C&I and CRE. And I don't know if you're going to really look at the consumer at this point? Or -- I mean, that's a lot less risk, I guess, at this point. Thomas O'Brien: Yes. Consumers -- I've focused all of my time and our collective energies on where we've had losses, and we've had virtually nothing in consumer. I did -- I think you probably noted we exited the consumer business now anyhow. So most of what there is just kind of the legacy portfolio. It has behaved fine, so it hasn't warranted a lot of attention. In terms of what we might do longer term with it, do we keep it? Do we sell the portfolio, it becomes a servicing issue. And so we'll continue to look at, but it's not an imperative. And just to be clear, too, by Labor Day, I think what I'm planning to do at that point is to be able to outline what I think are the situation will look like and what our plans are. I don't know that I'll have the exact final numbers for the quarter, even a reasonable estimate, but I think we -- from a very high level, we should know what the capital needs are, what the portfolios look like and what our thinking is in terms of disposition of portfolios and what the outcomes of that will be. Operator: Your next question comes from the line of Ross Haberman from Rlh Investments. Ross Haberman: I just have a couple of quick ones. The past dues, I think you said there was about $122 million. Could you break that down between the 90-plus and 60 days and less? Thomas O'Brien: I'm going to leave that to my CFO. Jawad Chaudhry: Ross, [indiscernible] would be disclosed in our quarterly filing. I don't have the numbers in front of me right now, but we will have that breakdown in the quarterly filing that will become public in the next couple of days. Ross Haberman: And the DTA you touched on, it was a big number. It was like $25 million on the balance sheet. Give us your thoughts on that? And how is it going to work? Would you have to -- if you continue to have some large write-downs in the next quarter or 2, what happens to that? Would you have to write that off because you can't utilize it? How does that work? Thomas O'Brien: Well, [indiscernible] normally do, if it becomes -- if it's determined to be unlikely to be used, you'd have to do a valuation reserve. We do not believe we're going to be in that position. We think once we're done with this process, the DTA will get utilized actually pretty efficiently. And we're only talking about the timing differences in the DTA represent the allowance. And so that's not the same issue as a losses on sale, which are more permanent, I guess, I'd say. So we'll end up with a -- and there's also a regulatory calculation for DTA that encompasses what you're allowed to count in your regulatory capital and what you are not allowed to count. But in any case, our view at the moment is that we will have a DTA of some significance, and we'll have an earnings capacity to chew it up pretty quickly. Jawad Chaudhry: And Ross, I'll echo Tom's comments. I know we are focused on credit, and that's the #1 issue at hand. But if you look at the core earnings power of the franchise, we have 5 quarters displayed in our press release, the operating revenue of the organization, very consistently, we have posted $25 million per quarter. That's $100 million worth of operating revenue. Unfortunately, the elevated credit costs have been eating into our profitability and turning us into a loss position. Once the balance sheet has been cleaned up from a credit perspective, as Tom said, any DTA that we have, we should be able to utilize it pretty quickly because the core earnings power of the franchise has stayed pretty intact, even though we have shrunk our balance sheet due to the NIM improvement that you have seen over the past several quarters. Ross Haberman: You didn't touch upon the cannabis loans. And I was wondering if any of them are in the -- or any of them are in the past due today? Jawad Chaudhry: To the best of my knowledge, the cannabis loans are not in the past due bucket. The total portfolio size, Ross, was $70 million or $69 million at the end of the second quarter. Ross Haberman: Okay. Do you -- Tom, do you lump those mostly into the CRE? Thomas O'Brien: The cannabis loans? Ross Haberman: Yes. Thomas O'Brien: Yes, I would say most of them have real estate collateral. But the -- it tends to be specialty properties. So you've got to keep that in mind. I think the one in Massachusetts that was the consequence of the large write-off either late last year or early this year. It was a warehouse facility, but it was specialty property. So I think that's where we made our mistake is not understanding and underwriting the nature of the property and how that would impact longer-term values as a collateral. Had a lot of value for its use. But once it wasn't for that use to reposition it pretty much decimated the value. Ross Haberman: Just two last questions, if I may. Could you talk about sort of the relations with the regulators? And are you -- I don't know if you can even discuss whether you're under an order or not, sort of touch upon whatever you can say about that? Thomas O'Brien: I can tell you my practice is if there's an order, we would disclose it. And so I don't think you're going to read anything about that in the 10-Q. I think our relations are, at this point, quite good. I maintain an open dialogue with them, as I've always done. I kind of let them know where we are, what we're doing and try to give them the no surprise rule, and I think they appreciate that. But on the other hand, there's just like with the investors, I mean, there's a lot of uncertainty in what happened and how did this happen and what is the fix going to look like. But again, I'm transparent with them, but nothing to hide to just try to tell them how we plan to fix it and what we're finding as we go along. Ross Haberman: And just one last question. It's sort of a technical question. You have that subordinated debt, $40-some-odd million, I think it is. Are you allowed -- if push came to shut, you like to defer the interest on that and not have it accelerate? Or -- if you don't have that. Thomas O'Brien: If we deferred it, it would be an event to default. Ross Haberman: All right. And one possibility, I just want to throw this out as you're looking at all your options in the next quarter. So I would -- I'm not sure it's well an idea to possibly convert all those preferreds to common. I'm not sure if that's too dilutive, but that's sort of all I was thinking about that idea. Thomas O'Brien: Well, as I mentioned, the real financial challenge, at least in the short run here is at the holding company because of the debt and the preferred. And it's both a liquidity issue for the holding company to service the debt and then just the ultimate cost of the debt. So there's obviously not the kind of liquidity at the holding company where we could buy in the debt at any great levels. I have thought -- actually, in one of my prior banks, I did a debt for equity swap, and that was reasonably successful. So it's in our mind and conversations, but nothing definitive at this point. Operator: Your next question comes from the line of Justin Crowley from Piper Sandler. Justin Crowley: I actually had a follow-up that actually just kind of got asked and answered, but it was really just on the holding company structure, how that complicates things. I don't know if there's anything more to elaborate on just with respect to what you might be looking to do there. I do think you kind of touched on it though. Thomas O'Brien: Yes. No, it's kind of early stage, Justin. The numbers are what they are and our flexibility around those is constrained, at least at this point, but we're trying to be creative and think about what to do to moderate the intermediate-term risks that, that presents for us. Operator: And that concludes our question-and-answer session and today's conference call. We thank you for your participation, and you may now disconnect. Before you buy stock in BCB Bancorp, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BCB Bancorp wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. BCB Bancorp (BCBP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is conducting a comprehensive 90-day review to cleanse financial statements of uncertainty stemming from aggressive growth between 2020 and 2023. Performance was impacted by a $5.3 million goodwill write-off, representing the elimination of the only intangible asset on the balance sheet. Net Interest Margin (NIM) saw an 8 basis point uptick to over 3%, driven by disciplined deposit pricing and a shrinking balance sheet. Credit issues are primarily concentrated in the 'Business Express' and C&I portfolios, where management identified a lack of expertise in specific business lines. The bank suspended common and preferred dividends to retain liquidity at the holding company and bolster capital at the bank level. Governance changes are underway, including reincorporating in Delaware and eliminating staggered board terms to modernize the corporate structure. Management expects to provide meaningful clarity on capital needs, portfolio disposition plans, and final restructuring numbers around Labor Day. Operating expenses are expected to remain elevated for several quarters due to the engagement of consultants and legal experts for the portfolio review. The strategic goal is to normalize operations by 2027, focusing on the core franchise's $100 million annual operating revenue capacity. Future capital strategy will prioritize keeping the bank well-capitalized while addressing the 'double leverage' challenge at the holding company level. Management is evaluating various levers for capital management, including potential portfolio sales, debt-for-equity swaps, and the utilization of deferred tax assets. The 'Business Express' portfolio has shown binary loss behavior, where credits either perform or result in near-total write-offs. A $19 million loan loss provision was primarily driven by a qualitative framework adjustment for the C&I portfolio rather than specific individual credits. The bank has exited the consumer lending business, with the remaining legacy portfolio currently showing stable performance. Cannabis-related loans, totaling approximately $70 million, are being monitored closely following a significant write-off related to a specialty warehouse property. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management has completed reviews of larger CRE credits but noted the vast majority of the portfolio still requires further analytics. While criticized and classified loans remain high, management believes real estate collateral provides better recovery value than C&I defaults. The $16.7 million C&I reserve build was a proactive move based on consultant feedback and a shift in recovery expectations. Management expects additional charge-offs may occur as the comprehensive review concludes toward the end of the third quarter. Management acknowledged that deferring interest on subordinated debt would trigger an event of default. A debt-for-equity swap is being considered as a potential strategy to address holding company leverage, though no definitive plan is in place.

Interested in BCB Bancorp, Inc. (NJ)? Here are five stocks we like better. BCB Bancorp is conducting a broad financial restructuring review of its loan portfolios, capital position and holding-company structure, with more clarity expected around Labor Day and an announcement targeted for the third quarter. Credit problems remain concentrated in commercial and industrial and commercial real estate portfolios, following aggressive growth from roughly 2020 through early 2024. The bank recorded a $19 million loan-loss provision, including $16.7 million for C&I loans, while criticized and classified commercial real estate loans remain elevated. The company suspended common and preferred dividends to preserve liquidity and strengthen bank capital. Management is evaluating multiple capital-structure options amid holding-company double leverage, subordinated debt and preferred-stock pressures, but has not yet made recommendations to the board. BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) said it is continuing a broad review of its loan portfolios, capital position and holding-company structure as new President and CEO Thomas O’Brien works to address credit issues tied to prior years of aggressive growth. O’Brien, who said the earnings call marked his first 60 days at the bank, said the company remains on the timetable he outlined in June and expects to provide more meaningful clarity around Labor Day. The company’s goal is to complete and announce its financial restructuring work during the third quarter. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now “The ultimate goal is to essentially cleanse the financial statements of the uncertainty that has existed for a few years,” O’Brien said. He said BCB has deployed employees across the bank and added outside consultants to support the review. During the quarter, BCB suspended dividends on both its common and preferred shares. O’Brien said the action was intended to retain liquidity at the holding company and build capital at the bank. → MarketBeat Week in Review – 07/27- 07/31 The company’s net interest margin increased by roughly 8 basis points during the quarter to above 3%, according to O’Brien. The quarterly loss included a $5.3 million goodwill write-off, which O’Brien said represented the company’s only intangible asset. O’Brien also said tangible book value was affected by the quarterly loss and by equity compensation granted when he joined the company. While the compensation is earned over five years, it was included in fully diluted share calculations on the first day. → GE HealthCare Stock Climbs on Vital Diagnostics Demand BCB’s board has also decided to change the company’s state of incorporation to Delaware and eliminate staggered director terms. O’Brien said the changes were intended to bring the company into a more contemporary corporate structure. Management said the bank’s credit issues appear to have originated in a period of overly aggressive growth beginning around 2020 and extending through late 2023 or early 2024. O’Brien said the bank entered businesses it did not fully understand and, in some cases, did not structure or price loans appropriately. The company is reviewing risk ratings across its portfolios and has found both positive and negative surprises, O’Brien said. While he said there have not been “huge changes” on average, the review is still underway. Chief Financial Officer and Treasurer Jawad Chaudhry said $16.7 million of the quarter’s $19 million loan-loss provision was directed toward the commercial and industrial portfolio, excluding Business Express loans. The reserve build reflected elevated qualitative risk factors, losses in the portfolio and preliminary feedback from consultants, he said. Chaudhry said BCB previously expected a major recovery in the C&I portfolio, but no longer holds that expectation. C&I portfolio losses fell to $0.8 million in the first quarter before rising to about $5.8 million in the second quarter. O’Brien said most recent charge-offs involved Business Express loans, along with two pure C&I loans. He noted that several loans had required near-total write-offs, an outcome he characterized as unusual for banks. Chaudhry said the company recorded close to $13 million in loans charged off at 100% across the fourth quarter and second quarter. Management said it has substantially reviewed the smaller-balance Business Express portfolio, including site visits, FICO-score deterioration and payment histories. Business Express loan losses totaled about $10 million in 2025 and a similar amount in 2024, Chaudhry said. Year-to-date 2026 Business Express losses were $1.1 million, with reserve coverage at 15%. O’Brien said the C&I review was approximately halfway complete, while the majority of the commercial real estate portfolio still required additional analysis. Management described the Business Express portfolio as weaker but said recent losses have moderated. O’Brien cautioned that the portfolio can be “binary,” with borrowers either continuing to perform or ceasing payments with little recovery value available. Commercial real estate remains an active area of review. O’Brien said the level of criticized and classified loans, while declining somewhat, remains “pretty shockingly high.” He said real estate collateral can provide more value in a workout than a failed C&I loan, but added that the bank must evaluate each loan carefully. O’Brien said BCB will “always err on the side of keeping the bank well-capitalized,” adding that the bank continues to have a healthy capital base. However, he identified the holding company’s absolute level of double leverage as a key challenge. Management is modeling multiple capital scenarios and has not yet made capital recommendations to the board. O’Brien said the company must consider all options, including the impact of deferred tax assets, and intends to disclose information as quickly and accurately as possible once its analysis is further advanced. The company’s deferred tax asset was discussed during the call. O’Brien said management does not currently believe a valuation reserve will be necessary and expects the asset to be utilized efficiently after the credit cleanup. Chaudhry said BCB has consistently generated roughly $25 million of operating revenue per quarter, or approximately $100 million annually, though elevated credit costs have pushed the company into a loss position. Management also acknowledged that subordinated debt and preferred stock create liquidity and cost pressures at the holding company. O’Brien said deferring interest on subordinated debt would constitute an event of default and is not an action the company plans to take. He said management is considering ways to moderate intermediate-term risks, including potentially creative approaches to the capital structure, but no decisions have been made. O’Brien said BCB has an attractive operating footprint and sees an opportunity to improve deposit gathering and funding costs. However, he said the company does not intend to grow the balance sheet until it has greater certainty around its financial needs. The company has largely exited consumer lending, according to O’Brien, and its remaining legacy consumer portfolio has performed well. As a result, management has focused its review on portfolios where losses have occurred. Chaudhry said the cannabis loan portfolio totaled approximately $69 million to $70 million at the end of the second quarter and was not past due to management’s knowledge. O’Brien said most cannabis loans are secured by real estate, though such properties can be specialized and may lose significant value if they must be repurposed. O’Brien said BCB’s relationships with regulators are “quite good” and that he has maintained an open dialogue regarding the company’s findings and remediation plans. He said the company has no intention of providing surprises to either regulators or investors as the review progresses. BCB Bancorp, Inc is a bank holding company incorporated in New Jersey and traded on the NASDAQ under the symbol BCBP. Its primary subsidiary, Bergen Commercial Bank, operates as a full-service community bank focused on serving the financial needs of individuals and businesses in the New York metropolitan area. Headquartered in Clifton, New Jersey, the company has built its reputation on personalized banking relationships and local decision-making. BCB Bancorp offers a comprehensive suite of deposit products, including checking accounts, savings accounts, money market accounts, and certificates of deposit. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BCB Bancorp, Inc. (NJ) Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

BAYONNE, N.J., Aug. 03, 2026 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported a net loss of $14.8 million for the second quarter of 2026, compared to net income of $4.9 million in the first quarter of 2026, and net income of $3.6 million for the second quarter of 2025. The Company’s loss per diluted share for the second quarter was ($0.85) compared to earnings per diluted share of $0.26 in the preceding quarter and $0.18 in the second quarter of 2025. The Company’s reported net loss for the six months ended June 30, 2026 was $9.9 million, compared to a net loss of $4.8 million for the six months ended June 30, 2025. The Company’s loss per diluted share for the six months ended June 30, 2026 was ($0.60) compared to a loss per diluted share of ($0.33) for the six months ended June 30, 2025. Executive Summary Total deposits were $2.636 billion at June 30, 2026, compared to $2.672 billion at March 31, 2026. Net interest margin was 3.03 percent for the second quarter of 2026, compared to 2.95 percent for the first quarter of 2026, and 2.80 percent for the second quarter of 2025. Total cost of interest-bearing liabilities decreased 6 basis points to 2.87 percent for the second quarter of 2026, compared to 2.93 percent for the first quarter of 2026, and decreased 29 basis points from 3.16 percent for the second quarter of 2025. The efficiency ratio for the second quarter was 96.8 percent compared to 62.4 percent in the prior quarter, and 60.6 percent in the second quarter of 2025. The annualized return on average assets ratio for the second quarter was (1.83) percent, compared to 0.61 percent in the prior quarter, and 0.42 percent in the second quarter of 2025. The annualized return on average equity ratio for the second quarter was (19.22) percent, compared to 6.50 percent in the prior quarter, and 4.55 percent in the second quarter of 2025. The provision for credit losses was $19.0 million in the second quarter of 2026 compared to $2.8 million for the first quarter of 2026. In the second quarter of 2025, the Bank recorded a provision of $4.9 million. Total criticized and classified loans was $367.4 million in the second quarter compared to $403.0 million at March 31, 2026. The allowance for credit losses on loans as a percentage of non-accrual loans was 62.5 percent at June 30, 2026, compared to 54.5 percent for the prior quarter-end and 49.8 percent at June 30, 2025. Total non-accrual loans were $72.0 million at June 30, 2026, $59.8 million at March 31, 2026 and $101.8 million at June 30, 2025. Total loans receivable, net of the allowance for credit losses on loans, of $2.588 billion at June 30, 2026, decreased from $2.860 billion at June 30, 2025. The net loss for the second quarter of 2026 was primarily driven by a $19.0 million provision for credit losses on loans, a $5.3 million non-cash goodwill impairment charge, and a $2.6 million loss on a loan transferred to held-for-sale. The elevated provision reflects additional reserves established for the Business Express loan portfolio and other portions of the Commercial and Industrial (“C&I”) loan portfolio, which has continued to experience elevated net charge-offs. Management determined that a higher reserve level was prudent given the portfolio’s performance trends, taking into account the early results of a recently commenced evaluation of the Bank’s loan portfolio focusing on potential problem loans. The goodwill impairment charge resulted from an interim quantitative impairment assessment triggered by the Company’s significant quarterly loss and the continued trading of its stock at a substantial discount to book value. The non-cash charge fully impaired the goodwill recorded on its balance sheet. The loss on the loan transferred to held-for-sale is consistent with management’s overall balance sheet evaluation strategy and relates to a non-accrual construction loan expected to be sold during the third quarter. “We are actively conducting a comprehensive review of the Bank’s loan portfolio with the assistance of independent consultants as part of our broader effort to strengthen the balance sheet and position the franchise for long-term success. It is too early in our evaluation to assess whether and to what extent additional loans, not captured in the second quarter results, may be impacted. While we remain focused on delivering sustainable operating performance, our immediate priority is to maintain disciplined balance sheet management and long-term value creation. As our evaluation continues in the third quarter, we will fully explore various alternatives to strengthen the credits or exit the relationships, which may include workouts and loan restructurings, such as potentially seeking additional collateral, interest rate adjustments, as well as select loan sales. In addition, the Bank has ceased originating residential mortgage, home equity, and consumer loans, as we believe the current risk-adjusted returns in these categories are not sufficiently attractive. At June 30, 2026, our capital remains above well capitalized. To help preserve capital at the bank and liquidity at the holding company, the board of directors agreed to suspend both common and preferred dividends at their June meeting. We have taken these steps that are focused on capital preservation to support our balance sheet strengthening initiatives and reinforce our commitment to building a safer, stronger, and more resilient institution.” said Tom O’Brien, President and Chief Executive Officer of the Company and the Bank. Reincorporation in Delaware The Company also announced today that the board has decided to change its state of incorporation to Delaware, and to end the current staggered board terms in favor of annual director elections. Mr. O’Brien noted: “the change to Delaware will align us with the vast majority of public companies and allows for updated governance provisions that will help place our company in line with prevailing public company governance practices. Later this quarter, we will call a special meeting of shareholders to be held late this year. The purpose of the meeting will be to seek shareholder approval to reincorporate in Delaware. The full presentation of these governance changes will be provided in a proxy statement in connection with the special meeting.” Balance Sheet Review Total assets decreased by $161.3 million, or 4.9 percent, to $3.118 billion at June 30, 2026, from $3.279 billion at December 31, 2025. The decrease in total assets was mainly related to a decrease in net loans and cash and cash equivalents, offset by an increase in debt securities. Total cash and cash equivalents decreased by $79.7 million, or 28.8 percent, to $196.9 million at June 30, 2026, from $276.6 million at December 31, 2025. 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. Loans receivable, net, decreased by $103.1 million, or 3.8 percent, to $2.588 billion at June 30, 2026, from $2.691 billion at December 31, 2025, due to loan payoffs, paydowns and charge-offs. Total loan decreases during the period included decreases of $35.2 million in construction loans, $30.9 million in commercial and multi-family loans, $10.9 million in commercial business loans, $5.9 million in business express loans, and $8.0 million in 1-4 family residential loans, and $679,000 in cannabis, home equity and consumer loans. The allowance for credit losses on loans increased $11.3 million to $45.0 million, or 62.5 percent of non-accruing loans and 1.71 percent of gross loans, at June 30, 2026, as compared to an allowance for credit losses on loans of $33.7 million, or 53.3 percent of non-accruing loans and 1.24 percent of gross loans, at December 31, 2025. Total investment securities increased by $16.7 million, or 12.3 percent, to $152.3 million at June 30, 2026, from $135.6 million at December 31, 2025, representing current year purchases, offset by current year sales. Deposits decreased by $37.6 million, or 1.4 percent, to $2.636 billion at June 30, 2026, from $2.674 billion at December 31, 2025. Certificates of deposit accounts and savings accounts decreased $45.2 million and $13.1 million, respectively, and were offset by an increase in money market accounts of $20.8 million. Brokered deposits declined by $28.6 million from $80.5 million at December 31, 2025 to $51.9 million at June 30, 2026. Debt obligations decreased by $109.9 million to $168.3 million at June 30, 2026, from $278.2 million at December 31, 2025, due to maturities and paydowns of FHLB advances. The weighted average interest rate of FHLB advances was 4.88 percent at June 30, 2026, and 4.53 percent at December 31, 2025. The weighted average maturity of FHLB advances as of June 30, 2026, was less than ninety days. The interest rate of the Company’s subordinated debt balances was 9.25 percent at June 30, 2026, and at December 31, 2025. Stockholders’ equity decreased by $12.4 million, or 4.1 percent, to $291.9 million at June 30, 2026, from $304.3 million at December 31, 2025. The decrease was attributable to the decrease in retained earnings of $13.2 million, or 11.3 percent, to $103.2 million at June 30, 2026, from $116.4 million at December 31, 2025, caused largely by the $9.9 million loss in the first six months of 2026. Asset Quality The Bank had non-accrual loans totaling $72.0 million, or 2.73 percent of gross loans, at June 30, 2026, as compared to $59.8 million, or 2.22 percent of gross loans, at March 31, 2026, and $63.3 million, or 2.32 percent of gross loans at December 31, 2025. The Bank had total past due loans totaling $122.8 million, or 4.66 percent of gross loans, at June 30, 2026, as compared to $107.9 million, or 4.01 percent of gross loans, at March 31, 2026, and $99.1 million, or 3.64 percent of gross loans, at December 31, 2025. The Bank had total classified and criticized loans totaling $367.4 million, or 13.94 percent of gross loans, at June 30, 2026, as compared to $403.0 million, or 14.98 percent of gross loans, at March 31, 2026, and $360.0 million, or 13.19 percent of gross loans, at December 31, 2025. The allowance for credit losses on loans of $45.0 million, as of June 30, 2026, increased by $12.4 million, or 38.1 percent, compared to March 31, 2026, and increased by $11.3 million, or 33.5 percent, compared to December 31, 2025. The $12.4 million increase compared to March 31, 2026 was driven by a $19.0 million increase in provision expense that was partially offset by $6.6 million in loan charge-offs. The increases in provision expenses and charge-offs compared to both periods were primarily attributed to the C&I portfolio that has continued to experience elevated net charge-offs. The C&I portfolio generated net charge-offs of $824 thousand in the first quarter, increasing to $5.8 million in the second quarter. In addition, the Bank determined that a full recovery is no longer expected on a previously charged-off $6.3 million C&I relationship. Reflecting these developments and broader credit trends observed within the C&I portfolio, management separately evaluated the portfolio under its qualitative reserve framework during the second quarter, resulting in a $10.8 million increase to the allowance established for the portfolio. During the second quarter, the Bank transferred one loan on nonaccrual status to held-for-sale, which was written down to fair market value resulting in a loss of $2.6 million reflected in non-interest income under the line item for net loss on the sale of loans. The remaining carrying value of the loan is $10.8 million. Loans held-for-sale are not included in past due loans or classified loans. The allowance for credit losses was 62.5 percent of non-accrual loans at June 30, 2026, compared to 54.5 percent of non-accrual loans at March 31, 2026, and 53.3 percent of non-accrual loans at December 31, 2025, respectively. Mr. O’Brien noted that, “since June 1, 2026, we have been engaged on a comprehensive re-evaluation of the company’s credit portfolios with the assistance of independent consultants. Their initial feedback has been reflected in the loan loss reserving decisions made during the second quarter and we are working toward completion of that review by the end of the third quarter. With respect to the much larger commercial real estate portfolio, we are in the early stages of our analysis. Given the absolute size and complexity of these portfolios, this remains a work in progress.” Second Quarter 2026 Income Statement Review The Company reported a net loss of $14.8 million for the quarter ended June 30, 2026, compared to net income of $3.6 million for the quarter ended June 30, 2025. This decline was primarily due to a $14.1 million increase in loan loss provisioning, a $5.3 million non-cash goodwill impairment charge, a $2.6 million loss on the sale of loans and a $1.7 million increase in salaries and employee benefits. This was offset by a decrease in tax provision of $4.9 million. Interest income decreased by $2.7 million, or 6.3 percent, to $40.5 million for the second quarter of 2026 from $43.2 million for the second quarter of 2025. The average balance of interest-earning assets decreased $215.5 million, or 6.5 percent, to $3.092 billion for the second quarter of 2026 from $3.307 billion for the second quarter of 2025. The average yield increased 1 basis point to 5.25 percent for the second quarter of 2026 from 5.24 percent for the second quarter of 2025. Interest expense decreased by $3.0 million to $17.1 million for the second quarter of 2026 from $20.1 million for the second quarter of 2025. The decrease resulted from a decrease in the average rate paid on interest-bearing liabilities of 29 basis points to 2.87 percent for the second quarter of 2026 from 3.16 percent for the second quarter of 2025, while the average balance of interest-bearing liabilities decreased by $156.0 million to $2.393 billion for the second quarter of 2026 from $2.549 billion for the second quarter of 2025. The net interest margin was 3.03 percent for the second quarter of 2026 compared to 2.80 percent for the second quarter of 2025. The increase in the net interest margin compared to the second quarter of 2025 was the result of a decrease in the cost of interest-bearing liabilities. The provision for credit losses was $19.0 million for the second quarter of 2026 compared to $4.9 million for the second quarter of 2025. The increase was primarily driven by higher reserve requirements within the C&I loan portfolio, as further described under Asset Quality. During the second quarter of 2026, the Company recognized $6.6 million in net charge-offs compared to $5.7 million in net charge-offs in the second quarter of 2025. The Bank had non-accrual loans totaling $72.0 million, or 2.73 percent of gross loans, at June 30, 2026, as compared to $63.3 million, or 2.32 percent of gross loans, at December 31, 2025. The allowance for credit losses on loans was $45.0 million, or 1.71 percent of gross loans, at June 30, 2026, and $33.7 million, or 1.24 percent of gross loans, at December 31, 2025. Management believes the allowance for credit losses on loans was adequate at June 30, 2026 and December 31, 2025. Non-interest income decreased by $2.5 million to a loss of $470 thousand for the second quarter of 2026, compared to income of $2.1 million for the second quarter of 2025. The decrease in total non-interest income was primarily attributable to a $2.6 million loss on the sale of loans, compared to no such loss in the prior year period, and a $108 thousand increase in mark-to-market losses on investment securities, partially offset by a $131 thousand increase in Bank Owned Life Insurance (“BOLI”) income. Non-interest expense increased by $6.9 million, or 45.0 percent, to $22.1 million for the second quarter of 2026 compared to $15.3 million for the second quarter of 2025. The increase was primarily driven by a $5.3 million non-cash goodwill impairment charge, a $1.7 million increase in salaries and benefits expense, which included $814 thousand severance costs, and a $273 thousand increase in advertising and promotion expense. Partially offsetting these increases was a $205 thousand decrease in professional fees. The income tax provision decreased by $4.9 million, to an income tax benefit of $3.5 million for the second quarter of 2026 when compared to a $1.5 million provision for the second quarter of 2025. Year-to-Date Income Statement ReviewNet income decreased by $5.1 million to a net loss of $9.9 million for the first six months of 2026, compared to a net loss of $4.8 million for the first six months of 2025. The increased net loss was primarily attributable to a $5.3 million non-cash goodwill impairment charge, a $2.6 million loss on the sale of loans and a $2.6 million increase in salaries and employee benefits. Net interest income increased $1.1 million for the first six months of 2026, as interest expense decreased by $7.6 million, or 17.9 percent, to $34.7 million from $42.3 million for the first six months of 2025 and interest income decreased $6.5 million, from $87.4 million to $80.9 million for the same period. The average balance of interest-earning assets decreased $257.1 million, or 7.6 percent, to $3.118 billion from $3.375 billion, while the average yield on interest-earning assets increased 1 basis point to 5.23 percent from 5.22 percent. The decline in average interest-earning assets was primarily due to a $279.5 million decrease in average loans, partially offset by a $19.2 million increase in average investment securities. The decrease in interest expense was driven by declines in interest expense on borrowings and deposits of $4.0 million and $3.6 million, respectively. Average borrowings decreased $201.4 million, while the average rate paid on borrowings increased by 70 basis points to 5.56 percent. Average deposits declined $10.1 million and the average rate paid on deposits declined 32 basis points to 2.59 percent. Net interest margin was 2.99 percent for the first six months of 2026, compared to 2.70 percent for the first six months of 2025. 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 35 basis points to 2.90 percent and an increase in the rate earned on earning assets, by 1 basis point to 5.23 percent. The provision for credit losses decreased by $4.0 million to $21.8 million for the first six months of 2026 from $25.7 million for the same period in 2025. The elevated provision in the prior-year period reflected a previously disclosed $13.7 million specific reserve related to a $34.2 million cannabis-sector lending relationship. The 2026 provision was primarily driven by increased reserve requirements within the C&I loan portfolio, as further described under Asset Quality. During the first six months of 2026, the Company experienced $10.5 million in net charge-offs compared to $9.9 million in net charge-offs for the same period in 2025. Non-interest income decreased by $2.2 million to $1.6 million for the first six months of 2026, compared to $3.9 million for the same period in 2025. The decrease was primarily attributable to a $2.6 million loss on the sale of loans in 2026, compared to no such loss in the prior year period. Partially offsetting this was a $469 thousand increase in income from Bank Owned Life Insurance (“BOLI”). Non-interest expense increased by $7.8 million, or 25.9 percent, to $37.7 million for the first six months of 2026 from $29.9 million for the same period in 2025. The increase was primarily driven by a $5.3 million non-cash goodwill impairment charge and a $2.6 million increase in salaries and employee benefits expense, which included $814 thousand severance costs recognized during the second quarter. Advertising expenses and OREO expenses increased $294 thousand and $280 thousand, respectively. Partially offsetting these increases were decreases in professional fees, director fees and regulatory assessments of $270 thousand, $241 thousand and $98 thousand, respectively. The income tax benefit decreased by $157 thousand or 8.1 percent, to an income tax benefit of $1.8 million for the first six months of 2026 when compared to a $1.9 million income tax benefit for the same period in 2025. While the pretax loss increased to $11.6 million from $6.7 million in the prior period, the income tax credit declined primarily because the $5.3 million non-cash goodwill impairment charge recognized in 2026 is not deductible for income tax purposes and therefore did not generate a corresponding tax benefit. Investor Conference Call Management will host a conference call on Monday, August 3, 2026 at 8:45 a.m. Eastern Time to discuss the results. Interested investors are invited to dial 1-800-715-9871 using conference ID 3209751 to participate in the call. A replay of the call will be available at  https://investorrelations.bcbcommunitybank.com/corporate-information/corporate-profile/default.aspx. About BCB Bancorp, Inc. Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has twenty-two branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branches 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 factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of global tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause increased loan delinquencies, a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations. 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: our ability to manage liquidity and capital in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages, 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; 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 results of the recently commenced and ongoing review of our loan portfolios; 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 hire and 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 filed for the year ended December 31, 2024, 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:Jawad Chaudhry, EVP, CFO & Treasurer (201) 823-0700

Meridian Bank (MRBK) came out with quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.88%. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.39, delivering a surprise of -18.75%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Meridian Bank, which belongs to the Zacks Banks - Northeast industry, posted revenues of $32.67 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.87%. This compares to year-ago revenues of $32.45 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Meridian Bank shares have added about 15.8% since the beginning of the year versus the S&P 500's gain of 6.9%. While Meridian Bank has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Meridian Bank was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.58 on $35.69 million in revenues for the coming quarter and $1.95 on $136.22 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. BCB Bancorp (BCBP), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This community bank is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +38.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BCB Bancorp's revenues are expected to be $25.53 million, up 1.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Meridian Bank (MRBK) : Free Stock Analysis Report BCB Bancorp, Inc. (NJ) (BCBP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CF Bankshares Inc. (CFBK) came out with quarterly earnings of $0.9 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.12%. A quarter ago, it was expected that this company would post earnings of $0.81 per share when it actually produced earnings of $0.77, delivering a surprise of -4.94%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. CF Bankshares, which belongs to the Zacks Banks - Northeast industry, posted revenues of $16.55 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.50%. This compares to year-ago revenues of $15.58 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CF Bankshares shares have added about 36.3% since the beginning of the year versus the S&P 500's gain of 8.3%. While CF Bankshares has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CF Bankshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.95 on $16.8 million in revenues for the coming quarter and $3.62 on $65.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, BCB Bancorp (BCBP), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This community bank is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +38.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BCB Bancorp's revenues are expected to be $25.53 million, up 1.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CF Bankshares Inc. (CFBK) : Free Stock Analysis Report BCB Bancorp, Inc. (NJ) (BCBP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

First Mid Bancshares (FMBH) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +12.50%. A quarter ago, it was expected that this bank holding company would post earnings of $1.03 per share when it actually produced earnings of $1.14, delivering a surprise of +10.68%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. First Mid Bancshares, which belongs to the Zacks Banks - Northeast industry, posted revenues of $108.49 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.30%. This compares to year-ago revenues of $87.46 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. First Mid Bancshares shares have added about 24.4% since the beginning of the year versus the S&P 500's gain of 9.6%. While First Mid Bancshares has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for First Mid Bancshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.12 on $106.95 million in revenues for the coming quarter and $4.58 on $419.1 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, BCB Bancorp (BCBP), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This community bank is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +38.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BCB Bancorp's revenues are expected to be $25.53 million, up 1.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Mid Bancshares, Inc. (FMBH) : Free Stock Analysis Report BCB Bancorp, Inc. (NJ) (BCBP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BAYONNE, N.J., April 21, 2026 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $4.9 million for the first quarter of 2026, compared to a net loss of $12.0 million in the fourth quarter of 2025, and a net loss of $8.3 million for the first quarter of 2025. The Company’s earnings per diluted share for the first quarter were $0.26 compared to a loss per diluted share of ($0.73) in the preceding quarter and a loss per diluted share of ($0.51) in the first quarter of 2025. The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.08 per share. The dividend will be payable on May 20, 2026, to common shareholders of record on May 6, 2026. “We are pleased to report a profitable first quarter, reflecting steady financial momentum and continued improvement across our core performance metrics. Our capital and liquidity positions remain strong, and the credit headwinds experienced in 2025 have moderated, consistent with our expectations. Following the stabilization of these trends, we have resumed lending activity and anticipate loan originations will continue to build momentum as the year progresses,” said Michael Shriner, President and Chief Executive Officer of BCB Bank. Executive Summary Total deposits were $2.672 billion at March 31, 2026, compared to $2.674 billion at December 31, 2025. Net interest margin was 2.95 percent for the first quarter of 2026, compared to 3.03 percent for the fourth quarter of 2025, and 2.59 percent for the first quarter of 2025. The total yield on our interest-earning assets was 5.21 percent for the first quarter of 2026, compared to 5.32 percent for the fourth quarter of 2025, and 5.20 percent for the first quarter of 2025. The total cost of our interest-bearing liabilities decreased 5 basis points to 2.93 percent for the first quarter of 2026, compared to 2.98 percent for the fourth quarter of 2025, and decreased 40 basis points from 3.33 percent for the first quarter of 2025. The efficiency ratio for the first quarter 2026 was 62.4 percent compared to 120.0 percent in the prior quarter, and 61.6 percent in the first quarter of 2025. The annualized return on average assets ratio for the first quarter of 2026 was 0.61 percent, compared to (1.44) percent in the prior quarter, and (0.95) percent in the first quarter of 2025. The annualized return on average equity ratio for the first quarter of 2026 was 6.5 percent, compared to (15.0) percent in the prior quarter, and (10.4) percent in the first quarter of 2025. The allowance for credit losses (“ACL”) as a percentage of non-accrual loans was 54.5 percent at March 31, 2026, compared to 53.3 percent at the prior quarter-end. Total non-accrual loans were $59.8 million at March 31, 2026, compared to $63.3 million at December 31, 2025, $93.5 million at September 30, 2025 and $101.8 million at June 30, 2025. The provision for credit losses was $2.8 million in the first quarter of 2026 compared to $12.2 million for the fourth quarter of 2025. In the first quarter of 2025, the Bank recorded a provision for credit losses of $20.8 million. Total loans receivable, net of the allowance for credit losses, of $2.656 billion at March 31, 2026, decreased 1.3 percent from $2.691 billion at December 31, 2025, and decreased 9.0 percent from $2.918 billion at March 31, 2025. Balance Sheet Review Total assets decreased by $10.4 million, or 0.3 percent, to $3.269 billion at March 31, 2026, from $3.280 billion at December 31, 2025. This decrease is the result of fewer net loans, offset by an increase in cash and cash equivalents. Total cash and cash equivalents increased by $17.2 million, or 6.2 percent, to $293.7 million at March 31, 2026, from $276.6 million at December 31, 2025. The increase in cash was primarily due to loan cash flows. Loans receivable, net, decreased by $35.1 million, or 1.3 percent, to $2.656 billion at March 31, 2026, from $2.691 billion at December 31, 2025, due to loan payoffs, paydowns and charge-offs. Total loan decreases during the period included decreases of $19.3 million in commercial real estate and multi-family loans, $12.1 in commercial business loans and $4.6 million in 1-4 family residential loans and home equity loans. The allowance for credit losses decreased $1.1 million to $32.6 million, or 54.5 percent of non-accruing loans and 1.21 percent of gross loans, at March 31, 2026, as compared to an allowance for credit losses of $33.7 million, or 53.3 percent of non-accruing loans and 1.24 percent of gross loans, at December 31, 2025. Total investments increased by $7.5 million, or 5.6 percent, to $143.1 million at March 31, 2026, from $135.6 million at December 31, 2025, representing current year purchases, net of maturity and paydowns during 2026. Deposits decreased by $1.1 million, or 0.04 percent, to $2.672 billion at March 31, 2026, from $2.674 billion at December 31, 2025. Certificates of deposit, non-interest bearing accounts and savings and club accounts decreased $33.7 million, and were offset by increases in money market accounts and interest bearing deposit accounts which totaled $32.6 million. Debt obligations decreased by $9.9 million to $268.3 million at March 31, 2026, from $278.2 million at December 31, 2025, due to maturities of our FHLB advances. The weighted average interest rate of FHLB advances was 4.70 percent at March 31, 2026, and 4.53 percent at December 31, 2025. The weighted average maturity of FHLB advances as of March 31, 2026 was 0.23 years. The interest rate of our subordinated debt balances was 9.25 percent at March 31, 2026 and December 31, 2025. Stockholders’ equity increased by $3.1 million, or 1.0 percent, to $307.4 million at March 31, 2026, from $304.3 million at December 31, 2025. The increase was attributable to retained earnings, which increased $3.0 million. First Quarter 2026 Income Statement Review The Company reported net income of $4.9 million for the quarter ended March 31, 2026, compared to a net loss of $8.3 million for the quarter ended March 31, 2025. This increase was due to the Bank recording $18.1 million less in loan loss provisioning, offset by the Bank recording $5.1 million more in income taxes. Interest income decreased by $3.8 million, or 8.6 percent, to $40.4 million for the first quarter of 2026 from $44.2 million for the first quarter of 2025. The average balance of interest-earning assets decreased $299.2 million, or 8.7 percent, to $3.144 billion for the first quarter of 2026 from $3.444 billion for the first quarter of 2025. The average yield increased 1 basis point to 5.21 percent for the first quarter of 2026 from 5.20 percent for the first quarter of 2025. Interest expense decreased by $4.6 million to $17.6 million for the first quarter of 2026 from $22.2 million for the first quarter of 2025. The decrease resulted from a decrease in the average rate paid on interest-bearing liabilities of 40 basis points to 2.93 percent for the first quarter of 2026 from 3.33 percent for the first quarter of 2025, while the average balance of interest-bearing liabilities decreased by $267.6 million to $2.434 billion in the first quarter of 2026 from $2.702 billion in the first quarter of 2025. The net interest margin increased to 2.95 percent for the first quarter of 2026 compared to 2.59 percent for the first quarter of 2025. The increase in the net interest margin compared to the first quarter of 2025 was the result of a decrease in the cost of interest-bearing liabilities, and an increase in the yield on interest-earning assets. During the first quarter of 2026, the Company recognized $3.9 million in net charge-offs compared to $4.2 million in net charge-offs in the first quarter of 2025. The Bank had non-accrual loans totaling $59.8 million, or 2.22 percent of gross loans, at March 31, 2026, as compared to $63.3 million, or 2.32 percent of gross loans, at December 31, 2025. The allowance for credit losses on loans was $32.6 million, or 1.21 percent of gross loans, at March 31, 2026, and $33.7 million, or 1.24 percent of gross loans, at December 31, 2025. The provision for credit losses was $2.8 million for the first quarter of 2026 compared to $12.2 million for the fourth quarter of 2025 and $20.8 million for the first quarter of 2025. Management believes that the allowance for credit losses on loans was adequate at March 31, 2026 and December 31, 2025. Non-interest income increased by $310 thousand to $2.1 million for the first quarter of 2026 from $1.8 million in the first quarter of 2025. The increase in total non-interest income was mainly related to a $338 thousand increase in BOLI income and a decrease in our realized and unrealized loss on equity investments of $22 thousand. Offsetting this was a decrease in other non-interest income of $75 thousand. Non-interest expense increased by $891 thousand, or 6.1 percent, to $15.6 million for the first quarter of 2026 compared to non-interest expense of $14.7 million for the first quarter of 2025. The increase in these expenses for the first quarter of 2026 was primarily driven by salaries and employee benefits, data processing costs and OREO expenses, which rose $924 thousand, $179 thousand and $150 thousand, respectively. Offsetting this was a decline in other non-interest expense and director fees of $203 thousand and $172 thousand, respectively. The income tax provision increased by $5.1 million, to an income tax expense of $1.7 million for the first quarter of 2026 when compared to a income tax benefit of $3.4 million for the first quarter of 2025. Asset Quality During the first quarter of 2026, the Company recognized $3.9 million in net charge offs, compared to $4.2 million in net charge-offs for the first quarter of 2025. The Company had non-accrual loans totaling $59.8 million, or 2.22 percent of gross loans, at March 31, 2026, as compared to $99.8 million, or 3.36 percent of gross loans, at March 31, 2025. The allowance for credit losses was $32.6 million, or 1.21 percent of gross loans, at March 31, 2026, and $51.5 million, or 1.73 percent of gross loans, at March 31, 2025. The allowance for credit losses was 54.5 percent of non-accrual loans at March 31 2026, and 51.6 percent of non-accrual loans at March 31, 2025. About BCB Bancorp, Inc. Established in 2000 and headquartered in Bayonne, N.J., BCB Community 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 four branches 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 factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the global impact of the military conflicts in the Ukraine and the Middle East, the potential impact of any future Federal budget stalemate in Congress, global tariffs imposed by the Trump administration, higher inflation levels, and general economic concerns, all of which could impact economic growth and could cause increased loan delinquencies, a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations. 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: our ability to manage liquidity and capital in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages; 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; 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 hire and 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 filed for the year ended December 31, 2025, 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 & Treasurer (201) 823-0700