BCB Bancorp Reports Decrease in Total Assets and Net Income Amid Changing Market Conditions

BCB Bancorp, Inc. reported a decrease in total assets to $3.614 billion as of September 30, 2024, down from $3.832 billion at the end of 2023, reflecting a decline of $218.6 million or 5.7%. This reduction was primarily driven by a decrease in total cash and cash equivalents, which fell by $36.4 million to $243.1 million, and a $191.8 million drop in net loans receivable, now totaling $3.088 billion. The decline in loans included significant reductions in commercial real estate multi-family loans ($137.2 million), construction loans ($46.3 million), and residential loans ($7.2 million).

Total deposits also decreased by $254.5 million, or 8.5%, to $2.725 billion, largely due to a $175.8 million reduction in certificates of deposit. In contrast, total liabilities decreased to $3.286 billion from $3.518 billion, while stockholders' equity increased by $14.1 million to $328.1 million, attributed to a rise in additional paid-in capital and retained earnings.

For the third quarter of 2024, BCB Bancorp reported net income of $6.7 million, consistent with the same quarter in 2023. However, net interest income declined by $2.6 million to $23.0 million, reflecting a decrease in interest income to $48.6 million, down from $49.1 million in the prior year. The net interest margin also fell to 2.58% from 2.78%. Interest expense rose significantly, increasing by $2.2 million to $25.6 million, resulting in a net interest rate spread of 1.82%, down from 2.13%.

For the nine months ended September 30, 2024, net income was $15.4 million, a decrease of $8.1 million or 34.5% from the same period in 2023. Net interest income for this period was $69.8 million, down 12.9% from $80.1 million in 2023. The increase in interest income to $147.4 million was offset by a substantial rise in interest expense, which reached $77.5 million, up 32.5% from the previous year.

Strategically, BCB Bancorp has made recent acquisitions, including Special Asset REO 1, LLC and Special Asset REO 2, LLC, as part of its merger with IA Bancorp, Inc. The company has also been active in capital management, closing several private placements of Series J Noncumulative Perpetual Stock, generating gross proceeds totaling approximately $20 million in 2024. The allowance for credit losses increased to $34.7 million, representing 1.11% of gross loans, reflecting heightened credit risk management amid changing market conditions.