Earnings release
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BCB BANCORP, INC. REPORTS NET LOSS OF $14.8MILLION IN THE SECOND QUARTER 2026; BOARDAPPROVES REINCORPORATION IN DELAWARE, SUBJECTTO SHAREHOLDER APPROVAL Company Release - 8/3/2026 7:00 AM ETBAYONNE, N.J., Aug. 03, 2026 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCBCommunity 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 inthe 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 quarterwas ($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’sreported 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) forthe 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 percentfor the second quarter of 2025.Total yield on interest-earning assets was 5.25 percent for the second quarter of 2026, compared to 5.21 percent for the first quarter of2026, and 5.24 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 forthe 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 secondquarter 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, and0.42 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, and4.55 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 thesecond 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 percentfor 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 March31, 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 June30, 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-cashgoodwill impairment charge, and a $2.6 million loss on a loan transferred to held-for-sale. The elevated provision reflects additional reservesestablished for the Business Express loan portfolio and other portions of the Commercial and Industrial (“C&I”) loan portfolio, which has continued toexperience 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. Thegoodwill impairment charge resulted from an interim quantitative impairment assessment triggered by the Company’s significant quarterly loss andthe continued trading of its stock at a substantial discount to book value. The non-cash charge fully impaired the goodwill recorded on its balancesheet. The loss on the loan transferred to held-for-sale is consistent with management’s overall balance sheet evaluation strategy and relates to anon-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 ourbroader effort to strengthen the balance sheet and position the franchise for long-term success. It is too early in our evaluation to assess whetherand to what extent additional loans, not captured in the second quarter results, may be impacted. While we remain focused on delivering sustainableoperating performance, our immediate priority is to maintain disciplined balance sheet management and long-term value creation. As our evaluationcontinues in the third quarter, we will fully explore various alternatives to strengthen the credits or exit the relationships, which may include workoutsand loan restructurings, such as potentially seeking additional collateral, interest rate adjustments, as well as select loan sales. In addition, the Bankhas ceased originating residential mortgage, home equity, and consumer loans, as we believe the current risk-adjusted returns in these categoriesare not sufficiently attractive. At June 30, 2026, our capital remains above well capitalized. To help preserve capital at the bank and liquidity at theholding company, the board of directors agreed to suspend both common and preferred dividends at their June meeting. We have taken these stepsthat 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 staggeredboard terms in favor of annual director elections. Mr. O’Brien noted: “the change to Delaware will align us with the vast majority of public companiesand allows for updated governance provisions that will help place our company in line with prevailing public company governance practices. Laterthis 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 approvalto reincorporate in Delaware. The full presentation of these governance changes will be provided in a proxy statement in connection with the specialmeeting.” 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 decreasein 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 brokereddeposits 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, dueto loan payoffs, paydowns and charge-offs. Total loan decreases during the period included decreases of $35.2 million in construction loans, $30.9million in commercial and multi-family loans, $10.9 million in commercial business loans, $5.9 million in business express loans, and $8.0 million in1-4 family residential loans, and $679,000 in cannabis, home equity and consumer loans.
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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 grossloans, 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 1.24percent 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 ofdeposit accounts and savings accounts decreased $45.2 million and $13.1 million, respectively, and were offset by an increase in money marketaccounts 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 andpaydowns of FHLB advances. The weighted average interest rate of FHLB advances was 4.88 percent at June 30, 2026, and 4.53 percent atDecember 31, 2025. The weighted average maturity of FHLB advances as of June 30, 2026, was less than ninety days. The interest rate of theCompany’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. Thedecrease 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 $116.4million 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 2.22percent 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 dueloans 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, atMarch 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, 2026was 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 provisionexpenses and charge-offs compared to both periods were primarily attributed to the C&I portfolio that has continued to experience elevated netcharge-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. Inaddition, the Bank determined that a full recovery is no longer expected on a previously charged-off $6.3 million C&I relationship. Reflecting thesedevelopments and broader credit trends observed within the C&I portfolio, management separately evaluated the portfolio under its qualitativereserve 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 resultingin 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 loanis $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 March31, 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 theassistance of independent consultants. Their initial feedback has been reflected in the loan loss reserving decisions made during the second quarterand we are working toward completion of that review by the end of the third quarter. With respect to the much larger commercial real estateportfolio, 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 endedJune 30, 2025. This decline was primarily due to a $14.1 million increase in loan loss provisioning, a $5.3 million non-cash goodwill impairmentcharge, 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 taxprovision 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 of2025. 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 5.24percent 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. Thedecrease 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 of2026 from 3.16 percent for the second quarter of 2025, while the average balance of interest-bearing liabilities decreased by $156.0 million to $2.393billion 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 inthe 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. Theincrease was primarily driven by higher reserve requirements within the C&I loan portfolio, as further described under Asset Quality. During thesecond 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 of2025. 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 2.32percent 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 wasadequate 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 thesecond 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 tono such loss in the prior year period, and a $108 thousand increase in mark-to-market losses on investment securities, partially offset by a $131thousand 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 thesecond quarter of 2025. The increase was primarily driven by a $5.3 million non-cash goodwill impairment charge, a $1.7 million increase in salariesand 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 firstsix 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 onthe sale of loans and a $2.6 million increase in salaries and employee benefits.
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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 $34.7million 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 sameperiod. The average balance of interest-earning assets decreased $257.1 million, or 7.6 percent, to $3.118 billion from $3.375 billion, while theaverage yield on interest-earning assets increased 1 basis point to 5.23 percent from 5.22 percent. The decline in average interest-earning assetswas primarily due to a $279.5 million decrease in average loans, partially offset by a $19.2 million increase in average investment securities. Thedecrease 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. Averagedeposits 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 thenet 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 basispoints 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 in2025. The elevated provision in the prior-year period reflected a previously disclosed $13.7 million specific reserve related to a $34.2 millioncannabis-sector lending relationship. The 2026 provision was primarily driven by increased reserve requirements within the C&I loan portfolio, asfurther 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. Partiallyoffsetting 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 sameperiod 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 andemployee benefits expense, which included $814 thousand severance costs recognized during the second quarter. Advertising expenses and OREOexpenses 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 whencompared 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 theprior period, the income tax credit declined primarily because the $5.3 million non-cash goodwill impairment charge recognized in 2026 is notdeductible 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, MonroeTownship, Newark, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branches in Hicksville andStaten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial bankingservices. 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, asamended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by thesafe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including thisstatement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe futureplans, 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. Ourability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially fromanticipated results. The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include theongoing impact of global tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all ofwhich 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 currentmanagement expectations as reflected in our forward-looking statements include, but are not limited to: our ability to manage liquidity and capital ina rapidly changing and unpredictable market, supply chain disruptions, labor shortages, the global impact of the military conflicts in the Ukraine andthe Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability toeffectively attract and deploy deposits; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it fundsthose assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity orvolatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levelsand slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans includinglitigation and other costs; the results of the recently commenced and ongoing review of our loan portfolios; the impact of changes in interest ratesand the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securitiesportfolios; 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 DepositInsurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, ratesand regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in thesecurities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to hire andretain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatoryrequirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere inthis 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 forthe 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 pressrelease also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financialresults. The Company’s management believes that providing this information to analysts and investors allows them to better understand andevaluate the Company’s financial results for the periods in question.
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The Company provides measurements and ratios based on tangible stockholders’ equity and efficiency ratios. These measures are utilized byregulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that suchinformation is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see “Reconciliation ofGAAP to Non-GAAP Financial Measures” below. Contact:Jawad Chaudhry,EVP, CFO & Treasurer (201) 823-0700 Statements of Operations - Three MonthsEnded, June 30, 2026 March 31, 2026June 30, 2025 June 30, 2026vs. March 31,2026 June 30, 2026vs. June 30,2025 Interest and dividend income: (In thousands, except per share amounts,Unaudited) Loans, including fees $ 35,856 $ 35,878 $ 38,650 -0.1% -7.2%Mortgage-backed securities 960 839 765 14.4% 25.5%Other investment securities 1,113 990 1,057 12.4% 5.3% FHLB stock and other interest-earning assets 2,532 2,695 2,709 -6.0% -6.5% Total interest and dividend income 40,461 40,402 43,181 0.1% -6.3% Interest expense: Deposits: Demand 5,413 5,170 5,584 4.7% -3.1%Savings and club 112 136 217 -17.6% -48.4% Certificates of deposit 8,266 8,592 9,170 -3.8% -9.9% 13,791 13,898 14,971 -0.8% -7.9% Borrowings 3,325 3,667 5,108 -9.3% -34.9% Total interest expense 17,116 17,565 20,079 -2.6% -14.8% Net interest income 23,345 22,837 23,102 2.2% 1.1% Provision for credit losses 18,987 2,788 4,891 581.0% 288.2% Net interest income after provision for creditlosses 4,358 20,049 18,211 -78.3% -76.1% Non-interest (loss) income : Fees and service charges 1,313 1,191 1,305 10.2% 0.6%(Loss) gain on sales of loans (2,607) 7 - -37342.9% - Realized and unrealized loss on equity investments (248) (93) (108) 166.7% 129.6%Bank-owned life insurance ("BOLI") income 917 946 786 -3.1% 16.7%Other 155 50 93 210.0% 66.7% Total non-interest (loss) income (470) 2,101 2,076 -122.4% -122.6% Non-interest expense: Salaries and employee benefits 9,395 8,327 7,713 12.8% 21.8%Occupancy and equipment 2,562 2,724 2,502 -5.9% 2.4%Data processing and communications 1,968 2,023 2,046 -2.7% -3.8%Professional fees 562 627 767 -10.4% -26.7%Director fees 244 246 313 -0.8% -22.0%Regulatory assessment fees 650 765 804 -15.0% -19.2%Advertising and promotions 489 200 216 144.5% 126.4%Other real estate owned, net 130 150 - -13.3% - Impairment of Goodwill 5,253 - - - - Other 879 489 907 79.8% -3.1% Total non-interest expense 22,132 15,551 15,268 42.3% 45.0% (Loss) Income before income tax (benefit)provision (18,244) 6,599 5,019 -376.5% -463.5%Income tax (benefit) provision (3,468) 1,695 1,455 -304.6% -338.4% Net (Loss) Income (14,776) 4,904 3,564 -401.3% -514.6%Preferred stock dividends - 482 482 - -
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Net (Loss) Income available to commonstockholders $ (14,776) $ 4,422 $ 3,082 -434.2% -579.5% Net (Loss) Income per common share-basic anddiluted Basic $ (0.85) $ 0.26 $ 0.18 -434.3% -575.8% Diluted $ (0.85) $ 0.26 $ 0.18 -434.3% -575.8% Weighted average number of common sharesoutstanding Basic 17,306 17,314 17,175 -0.0% 0.8% Diluted 17,306 17,314 17,175 -0.0% 0.8% Statements of Operations - SixMonths Ended, June 30, 2026 June 30, 2025 June 30, 2026vs. June 30,2025 Interest and dividend income: (In thousands, except per shareamounts, Unaudited) Loans, including fees $ 71,734 $ 77,577 -7.5%Mortgage-backed securities 1,799 1,326 35.7%Other investment securities 2,103 2,025 3.9% FHLB stock and other interest-earning assets 5,227 6,445 -18.9% Total interest and dividend income 80,863 87,373 -7.5% Interest expense: Deposits: Demand 10,583 11,002 -3.8%Savings and club 248 368 -32.6% Certificates of deposit 16,858 19,932 -15.4% 27,689 31,302 -11.5% Borrowings 6,992 10,964 -36.2% Total interest expense 34,681 42,266 -17.9% Net interest income 46,182 45,107 2.4% Provision for credit losses 21,775 25,736 -15.4% Net interest income after provision for credit losses 24,407 19,371 26.0% Non-interest income : Fees and service charges 2,504 2,478 1.0%Gain (loss) on sales of loans (2,600) - - Realized and unrealized gain (loss) on equity investments (341) (223) 52.9%Bank-owned life insurance ("BOLI") income 1,863 1,394 33.6% Other 205 218 -6.0% Total non-interest income 1,631 3,867 -57.8% Non-interest expense: Salaries and employee benefits 17,722 15,116 17.2%Occupancy and equipment 5,286 5,225 1.2%Data processing and communications 3,991 3,890 2.6%Professional fees 1,189 1,459 -18.5%Director fees 490 731 -33.0%Regulatory assessments 1,415 1,513 -6.5%Advertising and promotions 689 395 74.4%Other real estate owned, net 280 - - Impairment of Goodwill 5,253 - Other 1,368 1,599 -14.4%
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Total non-interest expense 37,683 29,928 25.9% Loss before income tax benefit (11,645) (6,690) 74.1%Income tax benefit (1,773) (1,930) -8.1% Net Loss (9,872) (4,760) 107.4%Preferred stock dividends 482 964 -50.0% Net Loss available to common stockholders $ (10,354) $ (5,724) 80.9% Net Loss per common share-basic and diluted Basic $ (0.60) $ (0.33) 79.5% Diluted $ (0.60) $ (0.33) 79.5% Weighted average number of common shares outstanding Basic 17,273 17,144 0.8% Diluted 17,273 17,144 0.8% Statements of Financial Condition June 30, 2026 March 31, 2026 December 31,2025 June 30, 2026vs. March 31,2026 June 30, 2026vs. December31, 2025ASSETS (In Thousands, Unaudited) Cash and amounts due from depository institutions $ 14,573 $ 12,619 $ 13,794 15.5% 5.6% Interest-earning deposits 182,314 281,118 262,790 -35.1% -30.6% Total cash and cash equivalents 196,887 293,737 276,584 -33.0% -28.8% Interest-earning time deposits 735 735 735 - - Debt securities available for sale 148,428 134,013 126,395 10.8% 17.4%Equity investments 3,851 9,079 9,172 -57.6% -58.0%Loans held for sale 10,777 - - - - Loans receivable, net of allowance for credit losseson loans of $44,980, $32,578, and $33,691 respectively 2,587,984 2,655,981 2,691,091 -2.6% -3.8%Federal Home Loan Bank of New York ("FHLB")stock, at cost 9,048 13,757 14,176 -34.2% -36.2%Premises and equipment, net 11,737 11,915 12,056 -1.5% -2.6%Accrued interest receivable 14,661 15,259 13,834 -3.9% 6.0%Other real estate owned 5,000 5,000 5,000 - - Deferred income taxes 24,794 23,047 22,209 7.6% 11.6%Goodwill - 5,253 5,253 - - Operating lease right-of-use asset 10,479 10,889 10,660 -3.8% -1.7%Bank-owned life insurance ("BOLI") 81,229 80,312 79,366 1.1% 2.3% Other assets 12,516 10,120 12,935 23.7% -3.2% Total Assets $ 3,118,126 $ 3,269,097 $ 3,279,466 -4.6% -4.9% LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Non-interest bearing deposits $ 514,648 $ 521,316 $ 531,140 -1.3% -3.1% Interest bearing deposits 2,121,375 2,151,113 2,142,433 -1.4% -1.0%Total deposits 2,636,023 2,672,429 2,673,573 -1.4% -1.4%FHLB advances 125,000 225,000 235,000 -44.4% -46.8%Subordinated debentures 43,335 43,272 43,210 0.1% 0.3%Operating lease liability 10,953 11,365 11,140 -3.6% -1.7% Other liabilities 10,896 9,651 12,259 12.9% -11.1% Total Liabilities 2,826,207 2,961,717 2,975,182 -4.6% -5.0% STOCKHOLDERS' EQUITY Preferred stock: $0.01 par value, 10,000 sharesauthorized - - - - -
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Additional paid-in capital preferred stock 25,243 25,243 25,243 - - Common stock: no par value, 40,000 sharesauthorized - - - - - Additional paid-in capital common stock 204,451 203,876 203,429 0.3% 0.5%Retained earnings 103,225 119,412 116,415 -13.6% -11.3%Accumulated other comprehensive loss (2,653) (2,804) (2,456) -5.4% 8.0% Treasury stock, at cost (38,347) (38,347) (38,347) - - Total Stockholders' Equity 291,919 307,380 304,284 -5.0% -4.1% Total Liabilities and Stockholders' Equity $ 3,118,126 $ 3,269,097 $ 3,279,466 -4.6% -4.9% Outstanding common shares 18,102 17,359 17,274 Three Months Ended June 30, 2026 2025 AverageBalance InterestEarned/Paid AverageYield/Rate AverageBalance InterestEarned/Paid AverageYield/Rate (Dollars in thousands)Interest-earning assets: Loans Receivable $ 2,660,757 $ 35,856 5.41% $ 2,933,851 $ 38,650 5.28%Investment Securities 152,347 2,073 5.44% 133,900 1,822 5.44% Other Interest-earning assets 278,413 2,532 3.65% 239,245 2,709 4.54% Total Interest-earning assets 3,091,517 40,461 5.25% 3,306,996 43,181 5.24%Non-interest-earning assets 139,410 113,206 Total assets $ 3,230,927 $ 3,420,202 Interest-bearing liabilities: Interest-bearing demand accounts $ 529,612 $ 2,122 1.61% $ 529,120 $ 2,230 1.69%Money market accounts 449,469 3,291 2.94% 418,014 3,354 3.22%Savings accounts 237,124 112 0.19% 258,696 217 0.34%Certificates of Deposit 940,358 8,266 3.53% 921,140 9,170 3.99% Total interest-bearing deposits 2,156,563 13,791 2.56% 2,126,970 14,971 2.82%Borrowed funds 236,427 3,325 5.64% 422,022 5,108 4.85% Total interest-bearing liabilities 2,392,990 17,116 2.87% 2,548,992 20,079 3.16% Non-interest-bearing liabilities 529,508 557,177 Total liabilities 2,922,498 3,106,169 Stockholders' equity 308,429 314,033 Total liabilities and stockholders' equity$ 3,230,927 $ 3,420,202 Net interest income $ 23,345 $ 23,102 Net interest rate spread 2.38% 2.08% Net interest margin 3.03% 2.80% Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost ofaverage interest-bearing liabilities.Net interest margin represents net interest income divided by average total interest-earning assets.Annualized.Excludes allowance for credit losses.Includes non-accrual loans.Includes Federal Home Loan Bank of New York Stock. Six Months Ended June 30, 2026 2025 AverageBalance InterestEarned/Paid AverageYield/Rate AverageBalance InterestEarned/Paid AverageYield/Rate (Dollars in thousands) (3) (3) (4)(5) (6) (1) (2) (1) (2) (3) (4) (5) (6) (3) (3)
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Interest-earning assets: Loans Receivable $ 2,684,502 $ 71,734 5.39% $ 2,964,023 $ 77,577 5.28%Investment Securities 144,789 3,902 5.43% 125,598 3,351 5.38% Other interest-earning assets 288,485 5,227 3.65% 285,271 6,445 4.56% Total Interest-earning assets 3,117,776 80,863 5.23% 3,374,892 87,373 5.22%Non-interest-earning assets 137,717 119,558 Total assets $ 3,255,493 $ 3,494,450 Interest-bearing liabilities: Interest-bearing demand accounts $ 526,523 $ 4,165 1.59% $ 544,756 $ 4,598 1.70%Money market accounts 440,938 6,418 2.94% 406,214 6,404 3.18%Savings accounts 239,777 248 0.21% 255,479 368 0.29%Certificates of Deposit 952,259 16,858 3.57% 963,171 19,932 4.17% Total interest-bearing deposits 2,159,497 27,689 2.59% 2,169,620 31,302 2.91%Borrowed funds 253,679 6,992 5.56% 455,036 10,964 4.86% Total interest-bearing liabilities 2,413,176 34,681 2.90% 2,624,656 42,266 3.25% Non-interest-bearing liabilities 535,232 550,454 Total liabilities 2,948,408 3,175,110 Stockholders' equity 307,085 319,340 Total liabilities and stockholders' equity$ 3,255,493 $ 3,494,450 Net interest income $ 46,182 $ 45,107 Net interest rate spread 2.33% 1.97% Net interest margin 2.99% 2.70% Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost ofaverage interest-bearing liabilities.Net interest margin represents net interest income divided by average total interest-earning assets.Annualized.Excludes allowance for credit losses.Includes non-accrual loans.Includes Federal Home Loan Bank of New York Stock. Financial Condition data by quarter Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 (In thousands, except book values)Total assets $ 3,118,126 $ 3,269,097 $ 3,279,466 $ 3,353,065 $ 3,380,461 Cash and cash equivalents 196,887 293,737 276,584 249,614 206,852 Securities 152,279 143,092 135,567 125,292 140,025 Loans receivable, net 2,587,984 2,655,981 2,691,091 2,788,932 2,860,453 Deposits 2,636,023 2,672,429 2,673,573 2,687,387 2,661,534 Borrowings 168,335 268,272 278,210 323,922 378,722 Stockholders’ equity 291,919 307,380 304,284 318,453 315,735 Book value per common share $ 14.73 $ 16.25 $ 16.15 $ 17.02 $ 16.89 Tangible book value per common share $ 14.73 $ 15.95 $ 15.85 $ 16.71 $ 16.59 Operating data by quarter Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 (In thousands, except for per share amounts)Net interest income $ 23,345 $ 22,837 $ 24,223 $ 23,711 $ 23,102 Provision for credit losses 18,987 2,788 12,195 4,080 4,891 Non-interest (loss) income (470) 2,101 1,943 2,745 2,076 Non-interest expense 22,132 15,551 31,385 16,570 15,268 Income tax expense (benefit) (3,468) 1,695 (5,385) 1,544 1,455 Net income (loss) $ (14,776) $ 4,904 $ (12,029) $ 4,262 $ 3,564 Net income (loss) per diluted share $ (0.85) $ 0.26 $ (0.73) $ 0.22 $ 0.18 Common Dividends declared per share $ 0.08 $ 0.08 $ 0.16 $ 0.16 $ 0.16 Financial Ratios(3) (4)(5) (6) (1) (2) (1) (2) (3) (4) (5) (6) (1) (2)
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Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025Return on average assets (1.83%) 0.61% (1.44%) 0.50% 0.42%Return on average stockholders' equity (19.22%) 6.50% (14.99%) 5.35% 4.55%Net interest margin 3.03% 2.95% 3.03% 2.88% 2.80%Stockholders' equity to total assets 9.36% 9.40% 9.28% 9.50% 9.34%Efficiency Ratio 96.75% 62.36% 119.95% 62.63% 60.64% Asset Quality Ratios Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 (In thousands, except for ratio %)Non-Accrual Loans $ 72,011 $ 59,805 $ 63,255 $ 93,517 $ 101,764 Non-Accrual Loans as a % of Total Loans 2.73% 2.22% 2.32% 3.31% 3.50%ACL as % of Non-Accrual Loans 62.5% 54.5% 53.3% 40.4% 49.8%Individually Analyzed Loans $ 124,832 $ 160,600 $ 162,226 $ 129,358 $ 153,428 Criticized Loans 206,975 208,339 170,875 220,768 229,929 Classified Loans 160,454 194,662 188,876 228,255 266,847 Past Due loans 122,759 107,947 99,132 174,006 110,971 Calculated by dividing stockholders' equity, less preferred equity, by shares outstanding.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 byquarter.”Ratios are presented on an annualized basis, where appropriate.The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest incomeand non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”Non-Accrual loans include Held for Sale loan.Classified and past due loans excludes Held for Sale loan. Recorded Investment in Loans Receivable by quarter Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 (In thousands)Residential one-to-four family $ 218,750 $ 223,708 $ 226,708 $ 227,140 $ 230,917 Commercial and multi-family 2,009,865 2,021,827 2,040,768 2,080,088 2,088,117 Cannabis related 69,190 68,876 69,293 69,102 103,007 Construction 33,298 68,362 68,521 105,980 111,370 Commercial business 157,523 160,088 168,459 192,762 224,800 Business Express 68,949 71,215 74,862 78,253 81,521 Home equity 73,935 72,716 74,332 73,566 71,587 Consumer 3,401 3,584 3,580 2,042 2,075 $ 2,634,911 $ 2,690,376 $ 2,726,523 $ 2,828,933 $ 2,913,394 Less: Deferred loan fees, net (1,947) (1,817) (1,741) (2,198) (2,283)Allowance for credit losses on loans (44,980) (32,578) (33,691) (37,803) (50,658) Total loans, net $ 2,587,984 $ 2,655,981 $ 2,691,091 $ 2,788,932 $ 2,860,453 Non-Accruing Loans in Portfolio by quarter Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 (In thousands)Residential one-to-four family $ 1,515 $ 1,576 $ 1,554 $ 1,410 $ 1,436 Commercial and multi-family 54,478 52,297 52,159 70,546 57,969 Cannabis related - - - - 33,512 Construction 13,364 3,173 4,897 2,310 586 Commercial business 2,397 2,418 3,725 17,442 6,392 Business Express - - 626 1,335 1,377 Home equity 257 341 294 474 492 Consumer - - - - - Total: $ 72,011 $ 59,805 $ 63,255 $ 93,517 $ 101,764 Includes Held for Sale loan (4) (5) (5) (6) (6) (1) (2) (3) (4) (5) (6) (1) (1)
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Distribution of Deposits by quarter Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 (In thousands)Demand: Non-Interest Bearing $ 514,648 $ 521,317 $ 531,140 $ 536,908 $ 539,093 Interest Bearing 517,627 511,465 501,172 477,427 503,336 Money Market 446,918 448,397 426,138 422,424 428,397 Sub-total: $ 1,479,193 $ 1,481,179 $ 1,458,450 $ 1,436,759 $ 1,470,826 Savings and Club 230,532 240,048 243,670 254,554 258,585 Certificates of Deposit 926,298 951,202 971,453 996,074 932,123 Total Deposits: $ 2,636,023 $ 2,672,429 $ 2,673,573 $ 2,687,387 $ 2,661,534 Reconciliation of GAAP to Non-GAAP Financial Measures by quarter Tangible Book Value per Share Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 (In thousands, except per share amounts)Total Stockholders' Equity $ 291,919 $ 307,380 $ 304,284 $ 318,453 $ 315,735 Less: goodwill - 5,253 5,253 5,253 5,253 Less: preferred stock 25,243 25,243 25,243 25,243 25,243 Total tangible common stockholders' equity 266,676 276,884 273,788 287,957 285,239 Common shares outstanding 18,102 17,359 17,274 17,228 17,194 Book value per common share $ 14.73 $ 16.25 $ 16.15 $ 17.02 $ 16.89 Tangible book value per common share $ 14.73 $ 15.95 $ 15.85 $ 16.71 $ 16.59 Efficiency Ratios Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 (In thousands, except for ratio %)Net interest income $ 23,345 $ 22,837 $ 24,223 $ 23,711 $ 23,102 Non-interest (loss)income (470) 2,101 1,943 2,745 2,076 Total income 22,875 24,938 26,166 26,456 25,178 Non-interest expense 22,132 15,551 31,385 16,570 15,268 Efficiency Ratio 96.75% 62.36% 119.95% 62.63% 60.64% Source: BCB Bancorp, Inc.