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BAYONNE, N.J. - BCB Bancorp, Inc. (NASDAQ:BCBP), the parent company of BCB Community Bank, disclosed an $8.3 million net loss for the first quarter of 2025, contrasting with a net income of $5.9 million from the same period last year. The loss per diluted share was ($0.51), a decline from the $0.32 earnings per share in the first quarter of 2024. The bank’s stock, with a market capitalization of $161 million, has declined nearly 20% year-to-date, according to InvestingPro data.
Despite the reported loss, the company declared a quarterly cash dividend of $0.16 per share, payable on May 21, 2025, to shareholders of record as of May 7, 2025. InvestingPro data reveals the bank has maintained dividend payments for 20 consecutive years, with a current dividend yield of 6.8%, significantly above industry averages. InvestingPro subscribers can access 6 additional key insights about BCBP’s financial health and prospects.
The first-quarter loss was largely attributed to a $13.7 million specific reserve for a $34.2 million loan in the cannabis sector, which, although current, required a downgrade to non-accrual status due to a significant deterioration in the borrower’s financial condition. Additionally, reserves for the discontinued Business Express Loan portfolio were increased by $3.1 million in response to persistent deterioration and broader economic challenges.
Michael Shriner, President and CEO of BCB Bank, emphasized the bank’s proactive risk management approach, noting that the bank remains well-capitalized. He also mentioned the strengthening of the credit risk team and adjustments to loan risk ratings following a conservative portfolio review.
Total deposits decreased slightly to $2.687 billion at the end of March 2025 from $2.751 billion at the end of December 2024. The net interest margin improved to 2.59 percent in the first quarter of 2025 from 2.50 percent in the same quarter of the previous year.
Non-accrual loans increased to $99.8 million at the end of March 2025, up from $22.2 million a year earlier. The allowance for credit losses as a percentage of non-accrual loans was 51.6 percent, down from 155.4 percent at the end of March 2024.
BCB Bancorp, Inc., based in Bayonne, N.J., operates through its subsidiary, BCB Community Bank, with numerous branches across New Jersey and New York, offering a variety of loans, deposit products, and other banking services. Trading at 0.54 times book value, the stock appears attractively priced relative to peers, though analysts tracked by InvestingPro maintain a neutral stance with price targets ranging from $10 to $15 per share.
This report is based on a press release statement from BCB Bancorp, Inc.
In other recent news, BCB Bancorp Inc. issued 52 shares of its Series K Noncumulative Perpetual Preferred Stock in a private placement, generating $520,000 in gross proceeds. This financial move, disclosed in a Securities and Exchange Commission filing, marks the second round of the company’s ongoing private placement of Series K Preferred Stock. The shares were sold at $10,000 each, representing 2% of the company’s total issued and outstanding Noncumulative Perpetual Preferred Stock. In addition to this capital-raising activity, DA Davidson analyst Manuel Navas revised the price target for BCB Bancorp, lowering it to $11 from $14, while maintaining a Neutral rating. Navas pointed out that the bank’s pre-provision net revenue fell short of expectations due to weaker net interest income and higher operating expenses. The analyst also noted a decline in loans and an increase in deposits, which affected the loan-to-deposit ratio. Despite these challenges, DA Davidson highlighted BCB Bancorp’s strategic focus on improving profitability and capital, branding 2025 as a transition year.
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