BAYONNE, N.J., July 28, 2025 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $3.6 million for the second quarter of 2025, compared to a net loss of $8.3 million in the first quarter of 2025, and net income of $2.8 million for the second quarter of 2024. Earnings per diluted share for the second quarter was $0.18 compared to a loss of ($0.51) per diluted share in the preceding quarter and $0.14 in the second quarter of 2024.
The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on August 25, 2025 to common shareholders of record on August 11, 2025.
“We are pleased with the quarterly results that demonstrate that the core profitability of our Company continues to trend in a positive direction. The quarter was characterized by meaningful net interest margin expansion that was driven by the continued optimization of our balance sheet profile,” Michael Shriner, President and Chief Executive Officer of BCB Bank, explained.
“As disclosed previously, we are aggressively addressing our asset quality challenges and remained disciplined in booking loan loss provisioning expenses that supported our loan loss reserves for the second quarter. While credit actions during this year have depressed our short-term profitability, the medium to long-term outlook for the Bank remains positive,” added Mr. Shriner.
Executive Summary
Total deposits were $2.662 billion at June 30, 2025 compared to $2.687 billion at March 31, 2025.
Net interest margin was 2.80 percent for the second quarter of 2025, compared to 2.59 percent for the first quarter of 2025, and 2.60 percent for the second quarter of 2024.
Total yield on interest-earning assets was 5.24 percent for the second quarter of 2025, compared to 5.20 percent for the first quarter of 2025, and 5.43 percent for the second quarter of 2024.
Total cost of interest-bearing liabilities decreased 17 basis points to 3.16 percent for the second quarter of 2025, compared to 3.33 percent for the first quarter of 2025, and decreased 40 basis points from 3.56 percent for the second quarter of 2024.
The efficiency ratio for the second quarter was 60.6 percent compared to 61.6 percent in the prior quarter, and 68.6 percent in the second quarter of 2024.
The annualized return on average assets ratio for the second quarter was 0.42 percent, compared to (0.95) percent in the prior quarter, and 0.30 percent in the second quarter of 2024.
The annualized return on average equity ratio for the second quarter was 4.6 percent, compared to (10.4) percent in the prior quarter, and 3.5 percent in the second quarter of 2024.
The provision for credit losses was $4.9 million in the second quarter of 2025 compared to $20.8 million for the first quarter of 2025. In the second quarter of 2024, the Bank recorded a provision of $2.4 million.
The allowance for credit losses (“ACL”) as a percentage of non-accrual loans was 49.8 percent at June 30, 2025 compared to 51.6 percent for the prior quarter-end and 108.6 percent at June 30, 2024. Total non-accrual loans were $101.8 million at June 30, 2025, $99.8 million at March 31, 2025 and $32.4 million at June 30, 2024.
Total loans receivable, net of the allowance for credit losses, of $2.860 billion at June 30, 2025, decreased from $3.162 billion at June 30, 2024.
Balance Sheet Review
Total assets decreased by $218.7 million, or 6.1 percent, to $3.380 billion at June 30, 2025, from $3.599 billion at December 31, 2024. The decrease in total assets was mainly related to a decrease in net loans and cash and cash equivalents.
Total cash and cash equivalents decreased by $110.4 million, or 34.8 percent, to $206.9 million at June 30, 2025, from $317.3 million at December 31, 2024. The decrease in cash was primarily due to the reduction of the Bank’s exposure to wholesale funding by paying down high cost brokered deposits and FHLB advances.
Loans receivable, net, decreased by $135.8 million, or 4.5 percent, to $2.860 billion at June 30, 2025, from $2.996 billion at December 31, 2024. Total loan decreases during the period included decreases totaling $125.0 million in commercial real estate and multi-family loans, construction loans, commercial business, business express and 1-4 family residential loans. The allowance for credit losses increased $15.9 million to $50.7 million, or 49.8 percent of non-accruing loans and 1.74 percent of gross loans, at June 30, 2025, as compared to an allowance for credit losses of $34.8 million, or 77.8 percent of non-accruing loans and 1.15 percent of gross loans, at December 31, 2024.
Total investment securities increased by $28.8 million, or 25.9 percent, to $140.0 million at June 30, 2025, from $111.2 million at December 31, 2024, representing current year purchases.
Deposits decreased by $89.3 million, or 3.2 percent, to $2.662 billion at June 30, 2025, from $2.751 billion at December 31, 2024. Brokered deposits and transaction accounts decreased $119.4 million and $29.6 million, respectively, and were offset by increases in money market accounts, certificate of deposit accounts and savings accounts which totaled $61.7 million.
Debt obligations decreased by $119.6 million to $378.7 million at June 30, 2025 from $498.3 million at December 31, 2024, due to maturities and paydowns of our FHLB advances. The weighted average interest rate of FHLB advances was 4.18 percent at June 30, 2025 and 4.35 percent at December 31, 2024. The weighted average maturity of FHLB advances as of June 30, 2025 was 0.79 years. The interest rate of our subordinated debt balances was 9.25 percent at June 30, 2025 and at December 31, 2024.
Stockholders’ equity decreased by $8.2 million, or 2.5 percent, to $315.7 million at June 30, 2025, from $323.9 million at December 31, 2024. The decrease was attributable to the decrease in retained earnings of $11.2 million, or 7.9 percent, to $130.6 million at June 30, 2025 from $141.9 million at December 31, 2024 caused largely by the $8.3 million loss in the first quarter of 2025, due to additions to the allowance for credit losses. Offsetting this were increases totaling $3.0 million consisting of a decrease in accumulated other comprehensive loss due to rate improvements and additional paid in capital on stock purchased during the quarter.
Second Quarter 2025 Income Statement Review
Net income was $3.6 million for the quarter ended June 30, 2025 and $2.8 million for the quarter ended June 30, 2024. This increase was, primarily, driven by a $4.9 million loss on sale of loans that depressed the earnings in the second quarter of 2024. This was offset, somewhat, by the Bank recording $2.5 million more in loan loss provisioning, $1.3 million more in non-interest expense and $537 thousand less in net interest income in the second quarter of 2025 as compared with the second quarter of 2024.
Interest income decreased by $6.3 million, or 12.7 percent, to $43.2 million for the second quarter of 2025 from $49.4 million for the second quarter of 2024. The average balance of interest-earning assets decreased $332.4 million, or 9.1 percent, to $3.307 billion for the second quarter of 2025 from $3.639 billion for the second quarter of 2024, while the average yield decreased 19 basis points to 5.24 percent for the second quarter of 2025 from 5.43 percent for the second quarter of 2024.
Interest expense decreased by $5.7 million to $20.1 million for the second quarter of 2025 from $25.8 million for the second quarter of 2024. The decrease resulted from a decrease in the average rate paid on interest-bearing liabilities of 40 basis points to 3.16 percent for the second quarter of 2025 from 3.56 percent for the second quarter of 2024, while the average balance of interest-bearing liabilities decreased by $348.5 million to $2.549 billion for the second quarter of 2025 from $2.897 billion for the second quarter of 2024.
The net interest margin was 2.80 percent for the second quarter of 2025 compared to 2.60 percent for the second quarter of 2024. The increase in the net interest margin compared to the second quarter of 2024 was the result of a decrease in the cost of interest-bearing liabilities, offset by a decrease in the yield on interest-earning assets.
During the second quarter of 2025, the Company recognized $5.7 million in net charge-offs compared to $1.8 million in net charge-offs in the second quarter of 2024. The Bank had non-accrual loans totaling $101.8 million, or 3.50 percent of gross loans, at June 30, 2025 as compared to $44.7 million, or 1.48 percent of gross loans, at December 31, 2024. The allowance for credit losses on loans was $50.7 million, or 1.74 percent of gross loans, at June 30, 2025, and $34.8 million, or 1.15 percent of gross loans, at December 31, 2024. The provision for credit losses was $4.9 million for the second quarter of 2025 compared to $2.4 million for the second quarter of 2024. Management believes that the allowance for credit losses on loans was adequate at June 30, 2025 and December 31, 2024.
Non-interest income increased by $5.3 million to $2.1 million for the second quarter of 2025 from a loss of $3.2 million in the second quarter of 2024. The increase in total non-interest income was mainly related to a $4.9 million loss on the sale of loans in the second quarter of 2024 and increases in fee and service charge income, BOLI income, and gains on equity securities of $186 thousand, $115 thousand, and $114 thousand, respectively.
Non-interest expense increased by $1.3 million, or 9.2 percent, to $15.3 million for the second quarter of 2025 when compared to non-interest expense of $14.0 million for the second quarter of 2024. The increase in these expenses for the second quarter of 2025 was primarily driven by salaries and employee benefits and data processing and communication costs which increased $721 thousand and $374 thousand, respectively.
The income tax provision increased by $292 thousand, to an income tax provision of $1.5 million for the second quarter of 2025 when compared to a $1.2 million provision for the second quarter of 2024. The consolidated effective tax rate was 29.0 percent for the second quarter of 2025 compared to 29.2 percent for the second quarter of 2024.
Year-to-Date Income Statement Review
Net income decreased by $13.4 million, or 154.8 percent, to a loss of $4.8 million for the first six months of 2025 from earnings of $8.7 million for the first six months of 2024. The decrease in net income was driven, primarily, by provisioning for loan loss expense being $21.2 million higher, net interest income being $1.7 million lower, and non-interest expense being $1.1 million higher. This was partly offset by the income tax provision being lower by $5.6 million and non-interest income being higher by $5.0 million.
Net interest income was $1.7 million lower as interest income decreased by $11.4 million, or 11.5 percent, to $87.4 million for the first six months of 2025, from $98.7 million for the first six months of 2024, and interest expense decreased $9.7 million for the same period. The average balance of interest-earning assets decreased $294.5 million, or 8.0 percent, to $3.375 billion for the first six months of 2025, from $3.669 billion for the first six months of 2024, while the average yield decreased 16 basis points to 5.22 percent from 5.38 percent for the comparable period. The decrease in interest earning assets was primarily a result of loans and interest-bearing bank balances declining $309.2 million and $15.2 million, respectively. This was offset by an increase in investment securities of $29.9 million. Interest expense decreased by $9.7 million, or 18.6 percent, to $42.3 million for 2025, from $51.9 million for 2024. This decrease resulted primarily from interest on deposits which decreased $9.2 million. Interest on borrowed money declined $506 thousand for the same period. Average deposits declined $247.2 million and the average rate paid on deposits declined 44 basis points to 2.91 percent. Average borrowings decreased $55.5 million for the same period. The average rate paid on borrowings increased by 37 basis points to 4.86 percent.
Net interest margin was 2.70 percent for the first six months of 2025, compared to 2.55 percent for the first six months of 2024. The increase in the net interest margin compared to the prior period was the result of a decrease in the cost of the Company’s interest-bearing liabilities, by 30 basis points to 3.25 percent. Offsetting that, somewhat, was a decrease in the rate earned on earning assets, which decreased 16 basis points to 5.22 percent.
During the first six months of 2025, the Company experienced $9.9 million in net charge offs compared to $2.9 million in net charge offs for the same period in 2024. The provision for credit losses increased from $4.5 million during the first six months of 2024 to $25.7 million for the first six months of 2025, primarily driven by a previously reported $13.7 million specific reserve tied to a $34.2 million loan in the cannabis sector. The Company’s cannabis loan portfolio had a balance of $103.0 million as of the end of the second quarter. The cannabis industry is facing operating challenges and the Bank’s cannabis loan portfolio, largely secured by real estate, poses an increased amount of credit risk. The portfolio has some larger relationships that could require material reserves in future periods if the operating headwinds persist.
Non-interest income increased by $5.0 million for the first six months of 2025 from a loss of $1.1 million for the first six months of 2024. In 2024, the Bank recorded a loss on sale of loans of $4.8 million. Fees and service charges and income on BOLI also increased $144 thousand and $48 thousand for the same period.
Non-interest expense increased by $1.1 million, or 3.8 percent, to $29.9 million for the first six months of 2025 from $28.8 million for the same period in 2024. The increase in operating expenses for 2025 was driven primarily by salaries and employee benefits which increased $1.1 million for the first six months of 2025 compared to the same period in 2024. Data processing costs and professional fees also increased, by $365 thousand and $260 thousand, respectively. Offsetting this was a decrease in regulatory fees and assessments of $582 thousand.
The income tax provision decreased by $5.6 million or 153.3 percent, to an income tax credit of $1.9 million for the first six months of 2025 when compared to a $3.6 million provision for the same period in 2024. The decrease in the income tax provision was a result of the lower taxable income for the six months ended June 30, 2025 compared to the same period in 2024. The consolidated effective tax rate was 28.9 percent for the first six months of 2025 compared to 29.4 percent for the first six months of 2024.
Asset Quality
During the second quarter of 2025, the Company recognized $5.7 million in net charge offs, compared to $1.8 million in net charge-offs for the second quarter of 2024.
The Bank had non-accrual loans totaling $101.8 million, or 3.50 percent of gross loans, at June 30, 2025, as compared to $32.4 million, or 1.01 percent of gross loans, at June 30, 2024. More than 60 percent of the non-accrual loans are current with all payments of principal, interest, taxes and insurance, including the previously mentioned loan that has been allocated a specific reserve. However, even though the normal standard for non-accrual is a 90-day delinquency, logic and transparency dictates that this population of loans possess certain weaknesses that are beyond payment status and therefore, even though they are current, they should be placed on non-accrual. Although our borrowers have made payment of their loan obligations to BCB a priority, our evaluation of their financial condition causes some concern about their continued ability to do so. The allowance for credit losses was $50.7 million, or 1.74 percent of gross loans, at June 30, 2025, and $35.2 million, or 1.10 percent of gross loans, at June 30, 2024. The allowance for credit losses was 49.8 percent of non-accrual loans at June 30, 2025, and 108.6 percent of non-accrual loans at June 30, 2024.
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 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 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.
Statements of Operations - Three Months Ended, | ||||||||||||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 vs. | June 30, 2025 vs. | ||||||||||
Interest and dividend income: | (In thousands, except per share amounts, Unaudited) | |||||||||||||
Loans, including fees | $ | 38,650 | $ | 38,927 | $ | 44,036 | -0.7 | % | -12.2 | % | ||||
Mortgage-backed securities | 765 | 561 | 297 | 36.4 | % | 157.6 | % | |||||||
Other investment securities | 1,057 | 968 | 1,006 | 9.2 | % | 5.1 | % | |||||||
FHLB stock and other interest-earning assets | 2,709 | 3,736 | 4,106 | -27.5 | % | -34.0 | % | |||||||
Total interest and dividend income | 43,181 | 44,192 | 49,445 | -2.3 | % | -12.7 | % | |||||||
Interest expense: | ||||||||||||||
Deposits: | ||||||||||||||
Demand | 5,584 | 5,418 | 5,349 | 3.1 | % | 4.4 | % | |||||||
Savings and club | 217 | 151 | 152 | 43.7 | % | 42.8 | % | |||||||
Certificates of deposit | 9,170 | 10,762 | 14,571 | -14.8 | % | -37.1 | % | |||||||
14,971 | 16,331 | 20,072 | -8.3 | % | -25.4 | % | ||||||||
Borrowings | 5,108 | 5,856 | 5,734 | -12.8 | % | -10.9 | % | |||||||
Total interest expense | 20,079 | 22,187 | 25,806 | -9.5 | % | -22.2 | % | |||||||
Net interest income | 23,102 | 22,005 | 23,639 | 5.0 | % | -2.3 | % | |||||||
Provision for credit losses | 4,891 | 20,845 | 2,438 | -76.5 | % | 100.6 | % | |||||||
Net interest income after provision for credit losses | 18,211 | 1,160 | 21,201 | 1469.9 | % | -14.1 | % | |||||||
Non-interest income income (loss) : | ||||||||||||||
Fees and service charges | 1,305 | 1,173 | 1,119 | 11.3 | % | 16.6 | % | |||||||
Loss on sales of loans | - | - | (4,851 | ) | 0.0 | % | -100.0 | % | ||||||
Realized and unrealized gain (loss) on equity investments | (108 | ) | (115 | ) | (222 | ) | -6.1 | % | -51.4 | % | ||||
Bank-owned life insurance ("BOLI") income | 786 | 608 | 671 | 29.3 | % | 17.1 | % | |||||||
Other | 93 | 125 | 49 | -25.6 | % | 89.8 | % | |||||||
Total non-interest income (loss) | 2,076 | 1,791 | (3,234 | ) | 15.9 | % | -164.2 | % | ||||||
Non-interest expense: | ||||||||||||||
Salaries and employee benefits | 7,713 | 7,403 | 6,992 | 4.2 | % | 10.3 | % | |||||||
Occupancy and equipment | 2,502 | 2,723 | 2,529 | -8.1 | % | -1.1 | % | |||||||
Data processing and communications | 2,046 | 1,844 | 1,672 | 11.0 | % | 22.4 | % | |||||||
Professional fees | 767 | 692 | 604 | 10.8 | % | 27.0 | % | |||||||
Director fees | 313 | 418 | 254 | -25.1 | % | 23.2 | % | |||||||
Regulatory assessment fees | 804 | 709 | 953 | 13.4 | % | -15.6 | % | |||||||
Advertising and promotions | 216 | 179 | 253 | 20.7 | % | -14.6 | % | |||||||
Other | 907 | 692 | 730 | 31.1 | % | 24.2 | % | |||||||
Total non-interest expense | 15,268 | 14,660 | 13,987 | 4.1 | % | 9.2 | % | |||||||
Income (Loss) before income tax provision | 5,019 | (11,709 | ) | 3,980 | -142.9 | % | 26.1 | % | ||||||
Income tax provision (benefit) | 1,455 | (3,385 | ) | 1,163 | -143.0 | % | 25.1 | % | ||||||
Net Income (Loss) | 3,564 | (8,324 | ) | 2,817 | -142.8 | % | 26.5 | % | ||||||
Preferred stock dividends | 482 | 482 | 448 | 0.0 | % | 7.7 | % | |||||||
Net Income (Loss) available to common stockholders | $ | 3,082 | $ | (8,806 | ) | $ | 2,369 | -135.0 | % | 30.1 | % | |||
Net Income (Loss) per common share-basic and diluted | ||||||||||||||
Basic | $ | 0.18 | $ | (0.51 | ) | $ | 0.14 | -134.9 | % | 28.8 | % | |||
Diluted | $ | 0.18 | $ | (0.51 | ) | $ | 0.14 | -134.9 | % | 28.8 | % | |||
Weighted average number of common shares outstanding | ||||||||||||||
Basic | 17,175 | 17,113 | 17,005 | 0.4 | % | 1.0 | % | |||||||
Diluted | 17,175 | 17,113 | 17,005 | 0.4 | % | 1.0 | % | |||||||
Statements of Operations - Six Months Ended, | ||||||||
June 30, 2025 | June 30, 2024 | June 30, 2025 vs. | ||||||
Interest and dividend income: | (In thousands, except per share amounts, Unaudited) | |||||||
Loans, including fees | $ | 77,577 | $ | 87,758 | -11.6 | % | ||
Mortgage-backed securities | 1,326 | 602 | 120.3 | % | ||||
Other investment securities | 2,025 | 1,981 | 2.2 | % | ||||
FHLB stock and other interest-earning assets | 6,445 | 8,389 | -23.2 | % | ||||
Total interest and dividend income | 87,373 | 98,730 | -11.5 | % | ||||
Interest expense: | ||||||||
Deposits: | ||||||||
Demand | 11,002 | 10,606 | 3.7 | % | ||||
Savings and club | 368 | 318 | 15.7 | % | ||||
Certificates of deposit | 19,932 | 29,554 | -32.6 | % | ||||
31,302 | 40,478 | -22.7 | % | |||||
Borrowings | 10,964 | 11,470 | -4.4 | % | ||||
Total interest expense | 42,266 | 51,948 | -18.6 | % | ||||
Net interest income | 45,107 | 46,782 | -3.6 | % | ||||
Provision for credit losses | 25,736 | 4,526 | 468.6 | % | ||||
Net interest income after provision for credit losses | 19,371 | 42,256 | -54.2 | % | ||||
Non-interest income (loss): | ||||||||
Fees and service charges | 2,478 | 2,334 | 6.2 | % | ||||
Loss on sales of loans | - | (4,806 | ) | -100.0 | % | |||
Realized and unrealized loss on equity investments | (223 | ) | (92 | ) | 142.4 | % | ||
Bank-owned life insurance ("BOLI") income | 1,394 | 1,346 | 3.6 | % | ||||
Other | 218 | 93 | 134.4 | % | ||||
Total non-interest income (loss) | 3,867 | (1,125 | ) | -443.7 | % | |||
Non-interest expense: | ||||||||
Salaries and employee benefits | 15,116 | 13,973 | 8.2 | % | ||||
Occupancy and equipment | 5,225 | 5,173 | 1.0 | % | ||||
Data processing and communications | 3,890 | 3,525 | 10.4 | % | ||||
Professional fees | 1,459 | 1,199 | 21.7 | % | ||||
Director fees | 731 | 531 | 37.7 | % | ||||
Regulatory assessments | 1,513 | 2,095 | -27.8 | % | ||||
Advertising and promotions | 395 | 469 | -15.8 | % | ||||
Other | 1,599 | 1,860 | -14.0 | % | ||||
Total non-interest expense | 29,928 | 28,825 | 3.8 | % | ||||
(Loss) Income before income tax provision | (6,690 | ) | 12,306 | -154.4 | % | |||
Income tax (benefit) provision | (1,930 | ) | 3,623 | -153.3 | % | |||
Net (Loss) Income | (4,760 | ) | 8,683 | -154.8 | % | |||
Preferred stock dividends | 964 | 882 | 9.3 | % | ||||
Net (Loss) Income available to common stockholders | $ | (5,724 | ) | $ | 7,801 | -173.4 | % | |
Net (Loss) Income per common share-basic and diluted | ||||||||
Basic | $ | (0.33 | ) | $ | 0.46 | -172.6 | % | |
Diluted | $ | (0.33 | ) | $ | 0.46 | -172.6 | % | |
Weighted average number of common shares outstanding | ||||||||
Basic | 17,144 | 16,968 | 1.0 | % | ||||
Diluted | 17,144 | 16,968 | 1.0 | % | ||||
Statements of Financial Condition | June 30, 2025 | March 31, 2025 | December 31,2024 | June 30, 2025 vs. | June 30, 2025 vs. | ||||||||
ASSETS | (In Thousands, Unaudited) | ||||||||||||
Cash and amounts due from depository institutions | $ | 11,939 | $ | 11,977 | $ | 14,075 | -0.3 | % | -15.2 | % | |||
Interest-earning deposits | 194,913 | 240,773 | 303,207 | -19.0 | % | -35.7 | % | ||||||
Total cash and cash equivalents | 206,852 | 252,750 | 317,282 | -18.2 | % | -34.8 | % | ||||||
Interest-earning time deposits | 735 | 735 | 735 | - | - | ||||||||
Debt securities available for sale | 130,776 | 116,496 | 101,717 | 12.3 | % | 28.6 | % | ||||||
Equity investments | 9,249 | 9,357 | 9,472 | -1.2 | % | -2.4 | % | ||||||
Loans held for sale | 488 | - | - | - | - | ||||||||
Loans receivable, net of allowance for credit losses on loans of $50,658, $51,484 and $34,789, respectively | 2,860,453 | 2,917,610 | 2,996,259 | -2.0 | % | -4.5 | % | ||||||
Federal Home Loan Bank of New York ("FHLB") stock, at cost | 18,762 | 22,066 | 24,272 | -15.0 | % | -22.7 | % | ||||||
Premises and equipment, net | 12,253 | 12,474 | 12,569 | -1.8 | % | -2.5 | % | ||||||
Accrued interest receivable | 15,847 | 16,354 | 15,176 | -3.1 | % | 4.4 | % | ||||||
Deferred income taxes | 21,750 | 22,814 | 17,181 | -4.7 | % | 26.6 | % | ||||||
Goodwill and other intangibles | 5,253 | 5,253 | 5,253 | 0.0 | % | 0.0 | % | ||||||
Operating lease right-of-use asset | 12,006 | 12,622 | 12,686 | -4.9 | % | -5.4 | % | ||||||
Bank-owned life insurance ("BOLI") | 77,434 | 76,648 | 76,040 | 1.0 | % | 1.8 | % | ||||||
Other assets | 8,603 | 8,643 | 10,476 | -0.5 | % | -17.9 | % | ||||||
Total Assets | $ | 3,380,461 | $ | 3,473,822 | $ | 3,599,118 | -2.7 | % | -6.1 | % | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
LIABILITIES | |||||||||||||
Non-interest bearing deposits | $ | 539,093 | $ | 542,621 | $ | 520,387 | -0.7 | % | 3.6 | % | |||
Interest bearing deposits | 2,122,441 | 2,143,887 | 2,230,471 | -1.0 | % | -4.8 | % | ||||||
Total deposits | 2,661,534 | 2,686,508 | 2,750,858 | -0.9 | % | -3.2 | % | ||||||
FHLB advances | 335,636 | 405,499 | 455,361 | -17.2 | % | -26.3 | % | ||||||
Subordinated debentures | 43,086 | 43,024 | 42,961 | 0.1 | % | 0.3 | % | ||||||
Operating lease liability | 12,479 | 13,087 | 13,139 | -4.6 | % | -5.0 | % | ||||||
Other liabilities | 11,991 | 10,982 | 12,874 | 9.2 | % | -6.9 | % | ||||||
Total Liabilities | 3,064,726 | 3,159,100 | 3,275,193 | -3.0 | % | -6.4 | % | ||||||
STOCKHOLDERS' EQUITY | |||||||||||||
Preferred stock: $0.01 par value, 10,000 shares authorized | - | - | - | - | - | ||||||||
Additional paid-in capital preferred stock | 25,243 | 25,243 | 24,723 | 0.0 | % | 2.1 | % | ||||||
Common stock: no par value, 40,000 shares authorized | - | - | - | 0.0 | % | 0.0 | % | ||||||
Additional paid-in capital common stock | 202,311 | 201,804 | 200,935 | 0.3 | % | 0.7 | % | ||||||
Retained earnings | 130,627 | 130,291 | 141,853 | 0.3 | % | -7.9 | % | ||||||
Accumulated other comprehensive loss | (4,099 | ) | (4,269 | ) | (5,239 | ) | -4.0 | % | -21.8 | % | |||
Treasury stock, at cost | (38,347 | ) | (38,347 | ) | (38,347 | ) | 0.0 | % | 0.0 | % | |||
Total Stockholders' Equity | 315,735 | 314,722 | 323,925 | 0.3 | % | -2.5 | % | ||||||
Total Liabilities and Stockholders' Equity | $ | 3,380,461 | $ | 3,473,822 | $ | 3,599,118 | -2.7 | % | -6.1 | % | |||
Outstanding common shares | 17,194 | 17,163 | 17,063 | ||||||||||
Three Months Ended June 30, | |||||||||||||||||
2025 | 2024 | ||||||||||||||||
Average Balance | Interest Earned/Paid | Average Yield/Rate (3) | Average Balance | Interest Earned/Paid | Average Yield/Rate (3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||
Loans Receivable (4)(5) | $ | 2,933,851 | $ | 38,650 | 5.28 | % | $ | 3,246,612 | $ | 44,036 | 5.43 | % | |||||
Investment Securities | 133,900 | 1,822 | 5.44 | % | 95,241 | 1,303 | 5.47 | % | |||||||||
Other Interest-earning assets (6) | 239,245 | 2,709 | 4.54 | % | 297,574 | 4,106 | 5.52 | % | |||||||||
Total Interest-earning assets | 3,306,996 | 43,181 | 5.24 | % | 3,639,428 | 49,445 | 5.43 | % | |||||||||
Non-interest-earning assets | 113,206 | 123,550 | |||||||||||||||
Total assets | $ | 3,420,202 | $ | 3,762,978 | |||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Interest-bearing demand accounts | $ | 529,120 | $ | 2,230 | 1.69 | % | $ | 546,391 | $ | 2,279 | 1.67 | % | |||||
Money market accounts | 418,014 | 3,354 | 3.22 | % | 370,204 | 3,070 | 3.32 | % | |||||||||
Savings accounts | 258,696 | 217 | 0.34 | % | 267,919 | 152 | 0.23 | % | |||||||||
Certificates of Deposit | 921,140 | 9,170 | 3.99 | % | 1,202,306 | 14,571 | 4.85 | % | |||||||||
Total interest-bearing deposits | 2,126,970 | 14,971 | 2.82 | % | 2,386,819 | 20,072 | 3.36 | % | |||||||||
Borrowed funds | 422,022 | 5,108 | 4.85 | % | 510,634 | 5,734 | 4.49 | % | |||||||||
Total interest-bearing liabilities | 2,548,992 | 20,079 | 3.16 | % | 2,897,452 | 25,806 | 3.56 | % | |||||||||
Non-interest-bearing liabilities | 557,177 | 545,269 | |||||||||||||||
Total liabilities | 3,106,169 | 3,442,721 | |||||||||||||||
Stockholders' equity | 314,033 | 320,257 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 3,420,202 | $ | 3,762,978 | |||||||||||||
Net interest income | $ | 23,102 | $ | 23,639 | |||||||||||||
Net interest rate spread(1) | 2.08 | % | 1.87 | % | |||||||||||||
Net interest margin(2) | 2.80 | % | 2.60 | % | |||||||||||||
(1) | Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. |
(2) | Net interest margin represents net interest income divided by average total interest-earning assets. |
(3) | Annualized. |
(4) | Excludes allowance for credit losses. |
(5) | Includes non-accrual loans. |
(6) | Includes Federal Home Loan Bank of New York Stock. |
Six Months Ended June 30, | |||||||||||||||||
2025 | 2024 | ||||||||||||||||
Average Balance | Interest Earned/Paid | Average Yield/Rate (3) | Average Balance | Interest Earned/Paid | Average Yield/Rate (3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||
Loans Receivable (4)(5) | $ | 2,964,023 | $ | 77,577 | 5.28 | % | $ | 3,273,200 | $ | 87,758 | 5.36 | % | |||||
Investment Securities | 125,598 | 3,351 | 5.38 | % | 95,747 | 2,583 | 5.40 | % | |||||||||
Other interest-earning assets (6) | 285,271 | 6,445 | 4.56 | % | 300,433 | 8,389 | 5.58 | % | |||||||||
Total Interest-earning assets | 3,374,892 | 87,373 | 5.22 | % | 3,669,380 | 98,730 | 5.38 | % | |||||||||
Non-interest-earning assets | 119,558 | 124,477 | |||||||||||||||
Total assets | $ | 3,494,450 | $ | 3,793,857 | |||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Interest-bearing demand accounts | $ | 544,756 | $ | 4,598 | 1.70 | % | $ | 553,290 | $ | 4,509 | 1.63 | % | |||||
Money market accounts | 406,214 | 6,404 | 3.18 | % | 369,650 | 6,097 | 3.30 | % | |||||||||
Savings accounts | 255,479 | 368 | 0.29 | % | 272,825 | 318 | 0.23 | % | |||||||||
Certificates of Deposit | 963,171 | 19,932 | 4.17 | % | 1,221,056 | 29,554 | 4.84 | % | |||||||||
Total interest-bearing deposits | 2,169,620 | 31,302 | 2.91 | % | 2,416,821 | 40,478 | 3.35 | % | |||||||||
Borrowed funds | 455,036 | 10,964 | 4.86 | % | 510,569 | 11,470 | 4.49 | % | |||||||||
Total interest-bearing liabilities | 2,624,656 | 42,266 | 3.25 | % | 2,927,390 | 51,948 | 3.55 | % | |||||||||
Non-interest-bearing liabilities | 550,454 | 548,985 | |||||||||||||||
Total liabilities | 3,175,110 | 3,476,375 | |||||||||||||||
Stockholders' equity | 319,340 | 317,482 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 3,494,450 | $ | 3,793,857 | |||||||||||||
Net interest income | $ | 45,107 | $ | 46,782 | |||||||||||||
Net interest rate spread(1) | 1.97 | % | 1.83 | % | |||||||||||||
Net interest margin(2) | 2.70 | % | 2.55 | % | |||||||||||||
(1) | Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. |
(2) | Net interest margin represents net interest income divided by average total interest-earning assets. |
(3) | Annualized. |
(4) | Excludes allowance for credit losses. |
(5) | Includes non-accrual loans. |
(6) | Includes Federal Home Loan Bank of New York Stock. |
Financial Condition data by quarter | |||||||||||||||
Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |||||||||||
(In thousands, except book values) | |||||||||||||||
Total assets | $ | 3,380,461 | $ | 3,473,822 | $ | 3,599,118 | $ | 3,613,770 | $ | 3,793,941 | |||||
Cash and cash equivalents | 206,852 | 252,750 | 317,282 | 243,123 | 326,870 | ||||||||||
Securities | 140,025 | 125,853 | 111,189 | 108,302 | 94,965 | ||||||||||
Loans receivable, net | 2,860,453 | 2,917,610 | 2,996,259 | 3,087,914 | 3,161,925 | ||||||||||
Deposits | 2,661,534 | 2,686,508 | 2,750,858 | 2,724,580 | 2,935,239 | ||||||||||
Borrowings | 378,722 | 448,523 | 498,322 | 533,466 | 510,710 | ||||||||||
Stockholders’ equity | 315,735 | 314,722 | 323,925 | 328,113 | 320,732 | ||||||||||
Book value per common share1 | $ | 16.89 | $ | 16.87 | $ | 17.54 | $ | 17.50 | $ | 17.17 | |||||
Tangible book value per common share2 | $ | 16.59 | $ | 16.56 | $ | 17.23 | $ | 17.19 | $ | 16.86 | |||||
Operating data by quarter | |||||||||||||||
Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |||||||||||
(In thousands, except for per share amounts) | |||||||||||||||
Net interest income | $ | 23,102 | $ | 22,005 | $ | 22,194 | $ | 23,045 | $ | 23,639 | |||||
Provision for credit losses | 4,891 | 20,845 | 4,154 | 2,890 | 2,438 | ||||||||||
Non-interest income (loss) | 2,076 | 1,791 | 938 | 3,127 | (3,234 | ) | |||||||||
Non-interest expense | 15,268 | 14,660 | 14,367 | 13,929 | 13,987 | ||||||||||
Income tax (benefit) expense | 1,455 | (3,385 | ) | 1,339 | 2,685 | 1,163 | |||||||||
Net (loss) income | $ | 3,564 | $ | (8,324 | ) | $ | 3,272 | $ | 6,668 | $ | 2,817 | ||||
Net (loss) income per diluted share | $ | 0.18 | $ | (0.51 | ) | $ | 0.16 | $ | 0.36 | $ | 0.14 | ||||
Common Dividends declared per share | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | |||||
Financial Ratios(3) | |||||||||||||||
Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |||||||||||
Return on average assets | 0.42 | % | (0.95 | %) | 0.36 | % | 0.72 | % | 0.30 | % | |||||
Return on average stockholders' equity | 4.55 | % | (10.40 | %) | 4.04 | % | 8.29 | % | 3.52 | % | |||||
Net interest margin | 2.80 | % | 2.59 | % | 2.53 | % | 2.58 | % | 2.60 | % | |||||
Stockholders' equity to total assets | 9.34 | % | 9.06 | % | 9.00 | % | 9.08 | % | 8.45 | % | |||||
Efficiency Ratio4 | 60.64 | % | 61.61 | % | 62.11 | % | 53.22 | % | 68.55 | % | |||||
Asset Quality Ratios | |||||||||||||||
Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |||||||||||
(In thousands, except for ratio %) | |||||||||||||||
Non-Accrual Loans | $ | 101,764 | $ | 99,833 | $ | 44,708 | $ | 35,330 | $ | 32,448 | |||||
Non-Accrual Loans as a % of Total Loans | 3.50 | % | 3.36 | % | 1.48 | % | 1.13 | % | 1.01 | % | |||||
ACL as % of Non-Accrual Loans | 49.8 | % | 51.6 | % | 77.8 | % | 98.2 | % | 108.6 | % | |||||
Individually Analyzed Loans | 153,428 | 122,517 | 83,399 | 66,048 | 60,798 | ||||||||||
Classified Loans | 266,847 | 251,989 | 152,714 | 98,316 | 87,033 | ||||||||||
(1) | Calculated by dividing stockholders' equity, less preferred equity, to shares outstanding. |
(2) | Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.” |
(3) | Ratios are presented on an annualized basis, where appropriate. |
(4) | The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.” |
Recorded Investment in Loans Receivable by quarter | |||||||||||||||
Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |||||||||||
(In thousands) | |||||||||||||||
Residential one-to-four family | $ | 230,917 | $ | 232,456 | $ | 239,870 | $ | 241,050 | $ | 242,706 | |||||
Commercial and multi-family | 2,177,268 | 2,221,218 | 2,246,677 | 2,296,886 | 2,340,385 | ||||||||||
Construction | 116,214 | 118,779 | 135,434 | 146,471 | 173,207 | ||||||||||
Commercial business | 315,333 | 330,358 | 342,799 | 371,365 | 375,355 | ||||||||||
Home equity | 71,587 | 66,479 | 66,769 | 67,566 | 66,843 | ||||||||||
Consumer | 2,075 | 2,271 | 2,235 | 2,309 | 2,053 | ||||||||||
$ | 2,913,394 | $ | 2,971,561 | $ | 3,033,784 | $ | 3,125,647 | $ | 3,200,549 | ||||||
Less: | |||||||||||||||
Deferred loan fees, net | (2,283 | ) | (2,467 | ) | (2,736 | ) | (3,040 | ) | (3,381 | ) | |||||
Allowance for credit losses | (50,658 | ) | (51,484 | ) | (34,789 | ) | (34,693 | ) | (35,243 | ) | |||||
Total loans, net | $ | 2,860,453 | $ | 2,917,610 | $ | 2,996,259 | $ | 3,087,914 | $ | 3,161,925 | |||||
Non-Accruing Loans in Portfolio by quarter | |||||||||||||||
Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |||||||||||
(In thousands) | |||||||||||||||
Residential one-to-four family | $ | 1,436 | $ | 1,138 | $ | 1,387 | $ | 410 | $ | 350 | |||||
Commercial and multi-family | 91,480 | 89,296 | 32,974 | 27,693 | 27,796 | ||||||||||
Construction | 586 | 586 | 586 | 586 | 586 | ||||||||||
Commercial business | 7,769 | 8,374 | 9,530 | 6,498 | 3,673 | ||||||||||
Home equity | 493 | 439 | 231 | 123 | 43 | ||||||||||
Consumer | - | - | - | 20 | - | ||||||||||
Total: | $ | 101,764 | $ | 99,833 | $ | 44,708 | $ | 35,330 | $ | 32,448 | |||||
Distribution of Deposits by quarter | |||||||||||||||
Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |||||||||||
(In thousands) | |||||||||||||||
Demand: | |||||||||||||||
Non-Interest Bearing | $ | 539,093 | $ | 542,620 | $ | 520,387 | $ | 528,089 | $ | 523,816 | |||||
Interest Bearing | 503,336 | 537,468 | 553,731 | 527,862 | 549,239 | ||||||||||
Money Market | 428,397 | 405,793 | 395,004 | 366,655 | 371,689 | ||||||||||
Sub-total: | $ | 1,470,826 | $ | 1,485,881 | $ | 1,469,122 | $ | 1,422,606 | $ | 1,444,744 | |||||
Savings and Club | 258,585 | 254,732 | 252,491 | 255,115 | 258,680 | ||||||||||
Certificates of Deposit | 932,123 | 945,895 | 1,029,245 | 1,046,859 | 1,231,815 | ||||||||||
Total Deposits: | $ | 2,661,534 | $ | 2,686,508 | $ | 2,750,858 | $ | 2,724,580 | $ | 2,935,239 | |||||
Reconciliation of GAAP to Non-GAAP Financial Measures by quarter | |||||||||||||||
Tangible Book Value per Share | |||||||||||||||
Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Total Stockholders' Equity | $ | 315,735 | $ | 314,722 | $ | 323,925 | $ | 328,113 | $ | 320,732 | |||||
Less: goodwill | 5,253 | 5,253 | 5,253 | 5,253 | 5,253 | ||||||||||
Less: preferred stock | 25,243 | 25,243 | 24,723 | 29,763 | 28,403 | ||||||||||
Total tangible common stockholders' equity | 285,239 | 284,226 | 293,949 | 293,097 | 287,076 | ||||||||||
Shares common shares outstanding | 17,194 | 17,163 | 17,063 | 17,048 | 17,029 | ||||||||||
Book value per common share | $ | 16.89 | $ | 16.87 | $ | 17.54 | $ | 17.50 | $ | 17.17 | |||||
Tangible book value per common share | $ | 16.59 | $ | 16.56 | $ | 17.23 | $ | 17.19 | $ | 16.86 | |||||
Efficiency Ratios | |||||||||||||||
Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |||||||||||
(In thousands, except for ratio %) | |||||||||||||||
Net interest income | $ | 23,102 | $ | 22,005 | $ | 22,194 | $ | 23,045 | $ | 23,639 | |||||
Non-interest income (loss) | 2,076 | 1,791 | 938 | 3,127 | (3,234 | ) | |||||||||
Total income | 25,178 | 23,796 | 23,132 | 26,172 | 20,405 | ||||||||||
Non-interest expense | 15,268 | 14,660 | 14,367 | 13,929 | 13,987 | ||||||||||
Efficiency Ratio | 60.64 | % | 61.61 | % | 62.11 | % | 53.22 | % | 68.55 | % | |||||
Contact: | Michael Shriner, |