BCB Bancorp Reports $8.3 Million Net Loss in First Quarter of 2025

BCB Bancorp Inc. reported a net loss of $8.3 million for the first quarter of 2025, a significant decline from the net income of $5.9 million recorded in the same period last year. This downturn was primarily attributed to a substantial increase in the provision for credit losses, which rose by $18.8 million, alongside a decrease in net interest income, which fell by $1.1 million to $22 million. The company's interest income decreased by 10.3% to $44.2 million, while interest expense also saw a reduction, leading to a net interest margin of 2.59%, up from 2.50% a year earlier.

Total assets for BCB Bancorp decreased by $125.3 million, or 3.5%, to $3.474 billion as of March 31, 2025, compared to $3.599 billion at the end of 2024. This decline was primarily driven by a reduction in net loans, which fell by $78.6 million to $2.918 billion. The allowance for credit losses increased significantly to $51.5 million, representing 1.73% of gross loans, compared to $34.8 million, or 1.15%, at the end of the previous year. The company also reported a decrease in total deposits, which fell by $64.4 million to $2.687 billion.

In terms of operational developments, BCB Bancorp continues to focus on its community-oriented banking model, offering a range of FDIC-insured deposit products and various loan types, including commercial and multi-family real estate loans. The company operates 27 branches across New Jersey and New York, with a strategic emphasis on expanding its footprint in these markets. The bank's loan portfolio has seen a shift towards commercial real estate and multi-family properties, which have been the primary growth areas in recent years.

The filing also highlighted the company's ongoing efforts to manage its liquidity and capital resources effectively. As of March 31, 2025, BCB Bancorp had total outstanding borrowings of $448.5 million, down from $498.3 million at the end of 2024. The company maintains a strong capital position, exceeding all regulatory capital requirements, with a community bank leverage ratio of 9.91%. Looking ahead, BCB Bancorp anticipates challenges related to economic conditions, including inflation and interest rate fluctuations, which may impact its financial performance and operational strategies. The management remains committed to navigating these challenges while focusing on maintaining adequate liquidity and capital levels.