Earnings release
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BCB Bancorp, Inc. Announces Results for the Third Quarter 2026; Achieves Substantial Progress Towards Restructured Balance Sheet Company Release - 10/29/2026 7:30 AM ET Successfully completed a $98.0 million equity capital raise through an underwritten public offering. Maintained well-capitalized regulatory capital levels. Reduced credit risk through the sale of $204.3 million of portfolios of certain problem loans. Transferred an additional $100.9 million of loans to held-for-sale. Enhanced Board oversight and governance with the addition of two new independent directors. Further reorganization of C-Suite to align governance and executive responsibilities. BAYONNE, N.J., Oct. 29, 2026 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported a net loss attributable to common stockholders of $132.5 million for the third quarter of 2026, compared to a net loss of $14.8 million in the second quarter of 2026, and net income of $3.8 million for the third quarter of 2025. The Companyʼs loss per diluted share for the third quarter was ($6.92) compared to a loss per diluted share of ($0.85) in the preceding quarter. The Company had earnings per share of $0.22 in the third quarter of 2025. The Companyʼs reported net loss attributable to common stockholders for the nine months ended September 30, 2026 was $142.8 million, compared to a net loss of $1.9 million for the nine months ended September 30, 2025. The Companyʼs loss per diluted share for the nine months ended September 30, 2026 was ($7.98) compared to a loss per diluted share of ($0.11) for the nine months ended September 30, 2025. Executive Summary Net interest margin was 3.03 percent for the third quarter of 2026, compared to 3.03 percent for the second quarter of 2026, and 2.88 percent for the third quarter of 2025. Total yield on interest-earning assets was 5.14 percent for the third quarter of 2026, compared to 5.25 percent for the second quarter of 2026, and 5.23 percent for the third quarter of 2025. Total cost of interest-bearing liabilities decreased 10 basis points to 2.77 percent for the third quarter of 2026, compared to 2.87 percent for the second quarter of 2026, and decreased 29 basis points from 3.06 percent for the third quarter of 2025. The efficiency ratio for the third quarter was 78.5 percent compared to 96.8 percent in the prior quarter, and 62.6 percent in the third quarter of 2025. The annualized return on average assets ratio for the third quarter was (17.0) percent, compared to (1.83) percent in the prior quarter, and 0.50 percent in the third quarter of 2025. The annualized return on average equity ratio for the third quarter was (172.7) percent, compared to (19.2) percent in the prior quarter, and 5.4 percent in the third quarter of 2025. The provision for credit losses was $115.0 million in the third quarter of 2026 compared to $19.0 million for the second quarter of 2026. In the third quarter of 2025, the Bank recorded a provision of $4.1 million. Total criticized and classified loans was $198.9 million in the third quarter compared to $367.4 million at June 30, 2026. The allowance for credit losses on loans as a percentage of non-accrual loans was 313.4 percent at September 30, 2026, compared to 73.5 percent for the prior quarter-end and 40.4 percent at September 30, 2025. Total non-accrual loans were $22.4 million at September 30, 2026, $61.2 million at June 30, 2026 and $93.5 million at September 30, 2025. Total loans receivable, net of the allowance for credit losses on loans, of $2.180 billion at September 30, 2026, decreased from $2.588 billion at June 30, 2026. Total deposits were $2.609 billion at September 30, 2026, compared to $2.636 billion at June 30, 2026. The Bankʼs leverage capital ratio at September 30, 2026 was 9.0% and the Companyʼs consolidated leverage capital ratio was 8.4%. The net loss for the third quarter of 2026 was primarily driven by a $115.0 million provision for credit losses and the $59.9 million in valuation allowance established against the Companyʼs deferred tax asset which is reflected in the calculation of our income tax provision for the quarter. The net charge-offs during the quarter totaled $89.7 million. As part of its strategy to meaningfully de-risk the balance sheet, the Bank completed a series of loan sales totaling $204.3 million of problem loans, the majority of which were risk-rated criticized or classified under the Bankʼs internal risk rating system. The sold portfolio included commercial and multifamily real estate loans with an aggregate unpaid principal balance of approximately $179.7 million, commercial and industrial loans of approximately $14.6 million, and construction loans of approximately $10.0 million, resulting in a $42.3 million charge-off to the allowance for credit losses on loans. During the quarter, the Bank also transferred $70.2 million of cannabis loans, $29.8 million of commercial real estate loans, and $874 thousand of commercial and industrial loans to held-for-sale status and recorded a related $44.2 million charge-off to the allowance for credit losses on loans based on the lower of cost or market. Excluding loans sold or transferred to held-for-sale status, charge-offs were primarily attributable to $3.2 million in the commercial business portfolio and $1.0 million in the Business Express loan portfolio. Management also completed a comprehensive review of the commercial and multifamily real estate portfolio, resulting in additional reserves for that segment. These actions follow the successful completion of the Companyʼs equity offering, which generated $91.4 million of net proceeds, including the exercise of the underwritersʼ option due to strong investor demand, and position the Bank with a substantially de-risked balance sheet and improved credit profile going forward. The Company also announced today that it has undergone a further reorganization of its C-Suite. Ryan Blake, the former Chief Operating Officer of the Company and the Bank has been transitioned into the newly established role of Chief Banking Officer of the Bank. His new role will entail oversight of retail banking, banking operations and marketing. Sandra Sievewright, the former Chief Compliance Officer of the Company and the Bank has been transitioned to Chief Administrative Officer of the Bank, where she will have oversight over the Bankʼs BSA area, facilities, security, CRA as well as the Bankʼs compliance function. These position changes better align the Bankʼs leadership structure with its strategic priorities and the core experience and leadership strengths of these executives. In addition, the Bank has appointed Eleni Willis as Chief Risk Officer. Eleni has served in various risk positions, including chief risk officer, at previous financial institutions. The Bank expects to appoint a new chief audit officer before the end of the year. Finally, Karen Duran has been appointed the Companyʼs principal accounting officer reporting to the Companyʼs Chief Financial Officer, in addition to her role as Chief Accounting Officer. Thomas M. OʼBrien, President and Chief Executive Officer of the Company and the Bank, stated “I am pleased with the successful execution of several strategic initiatives during the third quarter that we believe meaningfully de-risked our balance sheet and strengthened the Companyʼs financial position. In a very short period of time, we identified key credit challenges, assessed our capital needs, successfully raised capital, and completed loan sale transactions
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that reduced risk and improved the quality of our balance sheet. In addition, the comprehensive credit reviews completed during the second and third quarters resulted in an increase in our allowance for credit losses to address losses embedded in the portfolio and position the Bank for the future. The capital raise allowed us to absorb the losses recognized in our loan portfolio while maintaining solid capital ratios. The capital raise also significantly enhanced liquidity at the holding company level, with approximately $20 million of the proceeds retained at the holding company. While substantial progress has been made toward creating a safer and stronger institution, our work is far from complete. We remain focused on strengthening our risk management culture, improving operating performance, and working toward returning the Bank to sustainable profitability while creating long-term value for our shareholders.” Balance Sheet Review Total assets decreased by $258.4 million, or 7.9 percent, to $3.021 billion at September 30, 2026, from $3.279 billion at December 31, 2025. The decrease in total assets was mainly related to a decrease in net loans primarily due to our loan sales in the third quarter, offset by an increase in cash. Total cash and cash equivalents increased by $223.8 million, or 80.9 percent, to $500.3 million at September 30, 2026, from $276.6 million at December 31, 2025. The increase in cash was primarily due to proceeds from the loan sales and from the capital raise executed in the third quarter. Gross loans receivable held for investment decreased by $475.0 million, or 17.4 percent, to $2.252 billion at September 30, 2026, from $2.691 billion at December 31, 2025 due to the loan sales, the transfer of certain loans to held-for-sale, payoffs, paydowns and charge-offs. Total loan decreases during the period included decreases of $287.2 million in commercial and multifamily loans, $65.2 million in cannabis loans, $55.1 million in construction loans, $42.3 million in commercial business loans, $12.0 million in 1-4 family residential loans, $10.4 million in business express loans, and $2.8 million in home equity and consumer loans. The Bank had $67.6 million in loans held for sale at September 30, 2026. The allowance for credit losses on loans increased $36.6 million to $70.3 million, or 313.4 percent of non-accruing loans and 3.12 percent of gross loans held for investment, at September 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 1.24 percent of gross loans held for investment, at December 31, 2025. Total investment securities decreased by $594 thousand, or 0.4 percent, to $135.0 million at September 30, 2026, from $135.6 million at December 31, 2025, representing current year sales and paydowns, offset by current year purchases. Deposits decreased by $64.4 million, or 2.4 percent, to $2.609 billion at September 30, 2026, from $2.674 billion at December 31, 2025. Brokered deposits, certificates of deposit accounts and savings accounts decreased $80.5 million, $18.0 million and $14.6 million, respectively, and were offset by increases in transaction accounts and money market accounts of $27.1 million and $21.5 million, respectively. FHLB Advances decreased by $135.0 million to $100.0 million at September 30, 2026, from $235.0 million at December 31, 2025, due to maturities and paydowns. The weighted average interest rate of FHLB advances was 4.03 percent at September 30, 2026, and 4.53 percent at December 31, 2025. The weighted average maturity of FHLB advances as of September 30, 2026, was less than ninety days. The interest rate of the Companyʼs subordinated debt balances was 9.25 percent at September 30, 2026, and at December 31, 2025. Stockholdersʼ equity decreased by $58.2 million, or 19.1 percent, to $246.1 million at September 30, 2026, from $304.3 million at December 31, 2025. The decline was primarily attributable to the Companyʼs year-to-date net loss, partially offset by proceeds from the aforementioned capital raise. Asset Quality The Bank had non-accrual loans totaling $22.4 million, or 1.00 percent of gross loans held for investment, at September 30, 2026, as compared to $61.2 million, or 2.33 percent of gross loans held for investment, at June 30, 2026, and $63.3 million, or 2.32 percent of gross loans held for investment at December 31, 2025. The Bank had total past due loans totaling $52.2 million, or 2.32 percent of gross loans held for investment, at September 30, 2026, as compared to $122.8 million, or 4.66 percent of gross loans held for investment, at June 30, 2026, and $99.1 million, or 3.64 percent of gross loans held for investment, at December 31, 2025. The Bank had total classified and criticized loans totaling $198.9 million, or 8.84 percent of gross loans held for investment, at September 30, 2026, as compared to $367.4 million, or 13.96 percent of gross loans held for investment, at June 30, 2026, and $359.5 million, or 13.19 percent of gross loans held for investment, at December 31, 2025. The allowance for credit losses on loans of $70.3 million, as of September 30, 2026, increased by $25.3 million, or 56.2 percent, compared to June 30, 2026, and increased by $36.6 million, or 108.6 percent, compared to December 31, 2025. The $25.3 million increase from June 30, 2026 was primarily driven by higher reserves in the commercial and multifamily real estate portfolio following a comprehensive review conducted by the Bankʼs lending and credit teams. The allowance for credit losses was 313.4 percent of non-accrual loans at September 30, 2026, compared to 73.5 percent of non-accrual loans at June 30, 2026, and 53.3 percent of non-accrual loans at December 31, 2025, respectively. The allowance for credit losses was 152.4 percent of classified loans held for investment at September 30, 2026, compared to 28.0 percent of classified loans at June 30, 2026, and 17.9 percent of classified loans at December 31, 2025, respectively. Third Quarter 2026 Income Statement Review The Company reported a net loss of $132.5 million for the quarter ended September 30, 2026, compared to net income of $4.3 million for the quarter ended September 30, 2025. This decline was primarily due to a $110.9 million increase in loan loss provisioning. The net loss also reflects a $21.9 million increase in tax provision, a $2.1 million increase in professional fees and a $1.6 million increase in salaries and employee benefits. Interest income decreased by $4.7 million, or 10.8 percent, to $38.4 million for the third quarter of 2026 from $43.0 million for the third quarter of 2025. The average balance of interest-earning assets decreased $302.7 million, or 9.3 percent, to $2.962 billion for the third quarter of 2026 from $3.265 billion for the third quarter of 2025. The average yield decreased 9 basis points to 5.14 percent for the third quarter of 2026 from 5.23 percent for the third quarter of 2025. Interest expense decreased by $3.6 million to $15.8 million for the third quarter of 2026 from $19.3 million for the third quarter of 2025. The decrease resulted from a decrease in the average rate paid on interest-bearing liabilities of 29 basis points to 2.77 percent for the third quarter of 2026 from 3.06 percent for the third quarter of 2025, while the average balance of interest-bearing liabilities decreased by $249.6 million to $2.256 billion for the third quarter of 2026 from $2.505 billion for the third quarter of 2025. The net interest margin was 3.03 percent for the third quarter of 2026 compared to 2.88 percent for the third quarter of 2025. The increase in the net interest margin compared to the third quarter of 2025 was the result of the decrease in the average cost of interest-bearing liabilities exceeding the decline
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in the average rate earned on earning assets. The provision for credit losses was $115.0 million for the third quarter of 2026 compared to $4.1 million for the third quarter of 2025. The increase was primarily driven by elevated net charge-offs recognized during the quarter related to loan sale transactions and the transfer of loans to held-for-sale status, as well as higher loan loss reserves for the commercial and multifamily portfolio resulting from a detailed loan review. During the third quarter of 2026, the Company recognized $89.7 million in net charge-offs compared to $16.9 million in net charge-offs in the third quarter of 2025. The Bank had non-accrual loans totaling $22.4 million, or 1.00 percent of gross loans held for investment, at September 30, 2026, as compared to $63.3 million, or 2.32 percent of gross loans, at December 31, 2025. The allowance for credit losses on loans was $70.3 million, or 3.12 percent of gross loans, at September 30, 2026, and $33.7 million, or 1.24 percent of gross loans, at December 31, 2025. Non-interest income increased by $2.4 million to $5.2 million for the third quarter of 2026, compared to $2.7 million for the third quarter of 2025. The increase in total non-interest income was primarily attributable to a $3.3 million gain on the sale of OREO, offset by a decrease in gains/losses on equity securities of $427 thousand. Service charges and fee income also declined by $305 thousand. Non-interest expense increased by $5.2 million, or 31.6 percent, to $21.8 million for the third quarter of 2026 compared to $16.6 million for the third quarter of 2025. The increase was driven by professional fees, salaries and benefits and other expenses which increased $2.1 million, $1.6 million and $1.4 million, respectively. The increase in other expenses can be attributed to the expenses associated with the aforementioned loan sales. The income tax provision for the third quarter of 2026 was $23.5 million compared to $1.5 million for the third quarter of 2025. The substantial change was primarily attributable to a non-cash charge of $59.9 million related to the establishment of a full valuation allowance against the Companyʼs deferred tax assets. The valuation allowance reflects managementʼs assessment of the Companyʼs recent operating results including losses associated with loan sale activity and loans transferred to held-for-sale at the lower of cost or market. Year-to-Date Income Statement Review Net loss for the first nine months of 2026 was $142.3 million compared to a net loss of $498 thousand for the first nine months of 2025. The increased net loss was primarily attributable to the Bank recording $106.9 million more in loan loss provisioning and recording $13.0 million more in non-interest expense. Net interest income for the first nine months of 2026 decreased $37 thousand, as interest income decreased by $11.2 million, or 8.6 percent, to $119.2 million compared to $130.4 million for the first nine months of 2025 and interest expense decreased $11.1 million to $50.5 million for the first nine months of 2026, compared to $61.6 million for the first nine months of 2025. The average balance of interest-earning assets decreased $272.5 million, or 8.2 percent, to $3.065 billion for the first nine months of 2026 compared to $3.338 billion for the first nine months of 2025. The average yield on interest-earning assets decreased 2 basis points to 5.20 percent for the first nine months of 2026 compared to 5.22 percent for the first nine months of 2025. The decline in average interest-earning assets was primarily due to a $283.1 million decrease in average loans, partially offset by a $17.0 million increase in average investment securities. The decrease in interest expense was driven by declines in interest expense on borrowings and deposits of $5.8 million and $5.3 million, respectively. Average borrowings decreased $194.2 million, while the average rate paid on borrowings increased by 74 basis points to 5.60 percent. Average deposits declined $30.1 million and the average rate paid on deposits declined 29 basis points to 2.58 percent. Net interest margin was 3.00 percent for the first nine months of 2026 compared to a net interest margin of 2.76 percent for the first nine months of 2025. The increase in the net interest margin compared to the prior period was the result of a decrease in the cost of the Companyʼs interest-bearing liabilities, by 33 basis points to 2.86 percent offset by a decrease in the rate earned on earning assets, by 2 basis points to 5.20 percent. The provision for credit losses for the first nine months of 2026 was $136.7 million compared to $29.8 million for the same period in 2025. Net charge-offs for the first nine months of 2026 were $100.2 million compared to $26.8 million for the same period in 2025. The higher provision primarily reflected elevated loan losses recognized during the year and increased reserves within the commercial and industrial and commercial and multifamily loan portfolios. Reserve levels were increased following detailed credit reviews conducted by the lending and credit teams, resulting in the allowance for commercial and industrial loans increasing from $6.7 million at December 31, 2025 to $16.0 million at September 30, 2026, and the allowance for commercial and multifamily loans increasing from $12.1 million to $38.7 million over the same period. Non-interest income increased by $191 thousand to $6.8 million for the first nine months of 2026 compared to $6.6 million for the same period in 2025. The increase in total non-interest income was primarily attributable to a $3.3 million gain on the sale of OREO and $412 thousand more in income on Bank Owned Life Insurance (“BOLI”), partially offset by an increase in loss on sale of loans of $2.6 million and an increase in losses on equity securities of $545 thousand. Non-interest expense increased by $13.0 million, or 27.9 percent, to $59.5 million for the first nine months of 2026 from $46.5 million for the same period in 2025. The increase was driven by a $5.3 million non-cash goodwill impairment charge and a $4.2 million increase in salaries and employee benefits expense. The increase in salaries and benefits included $1.5 million in severance costs recognized during the first nine months of the year. Professional fees, other expenses, advertising expenses and OREO expenses increased $1.8 million, $1.2 million, $417 thousand and $454 thousand, respectively. Partially offsetting these increases were decreases in director fees and regulatory assessments of $302 thousand and $277 thousand, respectively. The income tax provision for the first nine months of 2026 was $21.7 million compared to an income tax benefit of $386 thousand for the same period in 2025. The substantial change was primarily attributable to a non-cash charge of $59.9 million related to the establishment of a full valuation allowance against the Companyʼs deferred tax assets. The valuation allowance reflects managementʼs assessment of the Companyʼs recent operating results including losses associated with loan sale activity and loans transferred to held-for-sale at the lower of cost or market. Investor Conference Call Management will host a conference call on Thursday, October 29, 2026 at 8:45 a.m. Eastern Time to discuss the results. Interested investors are invited to dial 1-833-461-5787 using conference ID 505095944 to participate in the call. A replay of the call will be available at https://investorrelations.bcbcommunitybank.com/corporate-information/corporate-profile/default.aspx (Opens in a new Window). 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, Monroe Township, Newark, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branches offices 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.
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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 global impact of the United States military conflict with Iran, the periodic Federal budget and funding stalemates in Congress, the ongoing impact of global tariffs imposed by the Trump administration, higher inflation levels, changes in market interest rates and general economic concerns, all of which could impact our customersʼ businesses and the economy 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: global economic trends and geopolitical risks, including the ongoing conflicts in the Middle East, and changes in the rate of investment or economic growth, including as a result of sanctions, tariffs or other measures; supply chain disruptions and labor shortages; the impact of any future pandemics or other natural disasters; unfavorable economic conditions in the United States generally and particularly in our primary market area and those of our customers; including the periodic Federal budget and funding stalemates in the U.S. Congress; the Companyʼs ability to effectively attract and deploy deposits; changes in the Companyʼs corporate strategies, the composition of its assets, or the way in which it funds those assets;the pending sale of the Companyʼs cannabis business, which may not be completed in accordance with expected plans or the currently contemplated timeline, or at all, and may be disruptive to the Company and/or reduce the Companyʼs profitability in future periods; our ability to complete our proposed reincorporation from New Jersey to Delaware, including our ability to receive shareholder approval of the proposed reincorporation, and our ability to realize the anticipated benefits of the proposed reincorporation; 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; changes in the credit performance of our loan portfolio, including levels of criticized and classified loans, nonaccrual loans, and charge-offs; 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 Bankʼs loan and investment portfolios; changes in liquidity levels, funding sources, or funding costs, and our ability to manage our liquidity risks; 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 loan markets; changes in managementʼs business strategies; our ability to enter new markets successfully; our ability to successfully integrate acquired businesses; 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; potential impact of regulatory requirements, matters, litigation, or other legal actions which could adversely affect operating results; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; developments in technology, such as artificial intelligence, and our ability to incorporate innovative technologies in our business and provide products and services that satisfy our customersʼ expectations for convenience and security; civil unrest in the communities that we serve; changes in accounting principles and guidelines; 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, 2025, and our other periodic reports that we file with the SEC. Annualized, pro forma, projected and estimated numbers are used for illustrative purposes 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 Companyʼs management uses in its analysis of the Companyʼs financial results. The Companyʼs management believes that providing this information to analysts and investors allows them to better understand and evaluate the Companyʼs financial results for the periods in question. The Company provides measurements and ratios based on tangible stockholdersʼ equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a companyʼs financial condition and, therefore, the Companyʼs 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.
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Statements of Operations - Three Months Ended, September 30, 2026 June 30, 2026 September 30, 2025 Sept. 30, 2026 vs. June 30, 2026 Sept. 30, 2026 vs. Sept. 30, 2025 Interest and dividend income: (In thousands, except per share amounts, Unaudited) Loans, including fees $ 34,213 $ 35,856 $ 38,278 -4.6% -10.6% Mortgage-backed securities 948 960 843 -1.3% 12.5% Other investment securities 1,128 1,113 1,114 1.3% 1.3% FHLB stock and other interest-earning assets 2,086 2,532 2,807 -17.6% -25.7% Total interest and dividend income 38,375 40,461 43,042 -5.2% -10.8% Interest expense: - Deposits: Demand 5,645 5,413 5,608 4.3% 0.7% Savings and club 97 112 233 -13.4% -58.4% Certificates of deposit 7,864 8,266 9,445 -4.9% -16.7% 13,606 13,791 15,286 -1.3% -11.0% Borrowings 2,170 3,325 4,045 -34.7% -46.4% Total interest expense 15,776 17,116 19,331 -7.8% -18.4% Net interest income 22,599 23,345 23,711 -3.2% -4.7% Provision for credit losses 114,961 18,987 4,080 505.5% 2717.7% Net interest (loss) income after provision for credit losses (92,362) 4,358 19,631 -2219.4% -570.5% Non-interest income (loss): Fees and service charges 1,006 1,313 1,311 -23.4% -23.3% (Loss) gain on sales of loans - (2,607) 21 -100.0% -100.0% Gain on sale of other real estate owned 3,283 - - - - Realized and unrealized (loss) gain on equity investments (77) (248) 350 -69.0% -122.0% Bank-owned life insurance ("BOLI") income 874 917 931 -4.7% -6.1% Other 86 155 132 -44.5% -34.8% Total non-interest income (loss) 5,172 (470) 2,745 -1200.4% 88.4% Non-interest expense: Salaries and employee benefits 9,937 9,395 8,324 5.8% 19.4% Occupancy and equipment 2,675 2,562 2,562 4.4% 4.4% Data processing and communications 2,031 1,968 2,047 3.2% -0.8% Professional fees 2,873 562 800 411.2% 259.1% Director fees 244 244 305 - -20.0% Regulatory assessment fees 805 650 984 23.8% -18.2% Advertising and promotions 407 489 284 -16.8% 43.3% Other real estate owned, net 174 130 - 33.8% - Impairment of Goodwill - 5,253 - - - Other 2,653 879 1,264 201.8% 109.9% Total non-interest expense 21,799 22,132 16,570 -1.5% 31.6% (Loss) Income before income tax (benefit) provision (108,989) (18,244) 5,806 497.4% -1977.2% Income tax provision (benefit) 23,464 (3,468) 1,544 -776.6% 1419.7% Net (Loss) Income (132,453) (14,776) 4,262 796.4% -3207.8% Preferred stock dividends - - 482 - - Net (Loss) Income available to common stockholders $ (132,453) $ (14,776) $ 3,780 796.4% -3604.2% Net (Loss) Income per common share-basic and diluted Basic $ (6.92) $ (0.85) $ 0.22 710.6% -3250.8% Diluted $ (6.92) $ (0.85) $ 0.22 710.6% -3250.8% Weighted average number of common shares outstanding Basic 19,137 17,306 17,207 10.6% 11.2% Diluted 19,137 17,306 17,207 10.6% 11.2%
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Statements of Operations - Nine Months Ended, September 30, 2026 September 30, 2025 Sept. 30, 2026 vs.Sept. 30, 2025 Interest and dividend income: (In thousands, except per share amounts, Unaudited) Loans, including fees $ 105,947 $ 115,855 -8.6% Mortgage-backed securities 2,747 2,169 26.6% Other investment securities 3,231 3,139 2.9% FHLB stock and other interest-earning assets 7,313 9,252 -21.0% Total interest and dividend income 119,238 130,415 -8.6% Interest expense: Deposits: Demand 16,228 16,610 -2.3% Savings and club 345 601 -42.6% Certificates of deposit 24,722 29,377 -15.8% 41,295 46,588 -11.4% Borrowings 9,162 15,009 -39.0% Total interest expense 50,457 61,597 -18.1% Net interest income 68,781 68,818 -0.1% Provision for credit losses 136,736 29,816 358.6% Net interest (loss) income after provision for credit losses (67,955) 39,002 -274.2% Non-interest income : Fees and service charges 3,510 3,789 -7.4% (Loss) gain on sales of loans (2,600) 21 - Gain on sales of other real estate owned 3,283 - - Realized and unrealized (loss) gain on equity investments (418) 127 -429.1% Bank-owned life insurance ("BOLI") income 2,737 2,325 17.7% Other 291 350 -16.9% Total non-interest income 6,803 6,612 2.9% Non-interest expense: Salaries and employee benefits 27,659 23,440 18.0% Occupancy and equipment 7,961 7,787 2.2% Data processing and communications 6,022 5,937 1.4% Professional fees 4,062 2,259 79.8% Director fees 734 1,036 -29.2% Regulatory assessments 2,220 2,497 -11.1% Advertising and promotions 1,096 679 61.4% Other real estate owned, net 454 - - Impairment of Goodwill 5,253 - Other 4,021 2,863 40.4% Total non-interest expense 59,482 46,498 27.9% Loss before income tax benefit (120,634) (884) 13546.4% Income tax provision (benefit) 21,691 (386) -5719.4% Net Loss (142,325) (498) 28479.3% Preferred stock dividends 482 1,446 -66.7% Net Loss available to common stockholders $ (142,807) $ (1,944) 7244.3% Net Loss per common share-basic and diluted Basic $ (7.98) $ (0.11) 6945.1% Diluted $ (7.98) $ (0.11) 6945.1% Weighted average number of common shares outstanding Basic 17,894 17,165 4.2% Diluted 17,894 17,165 4.2%
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Statements of Financial Condition September 30, 2026 June 30, 2026 December 31, 2025 Sept. 30, 2026 vs. June 30, 2026 Sept. 30, 2026 vs. December 31, 2025 ASSETS (In Thousands, Unaudited) Cash and amounts due from depository institutions $ 13,236 $ 14,573 $ 13,794 -9.2% -4.0% Interest-earning deposits 487,077 182,314 262,790 167.2% 85.3% Total cash and cash equivalents 500,313 196,887 276,584 154.1% 80.9% Interest-earning time deposits 735 735 735 - - Debt securities available for sale 134,973 148,428 126,395 -9.1% 6.8% Equity investments - 3,851 9,172 -100.0% -100.0% Loans held for sale 67,556 10,777 - 526.9% - Loans receivable, net of allowance for credit losses on loans of $70,270, $44,980, and $33,691 respectively 2,179,697 2,587,984 2,691,091 -15.8% -19.0% Federal Home Loan Bank of New York ("FHLB") stock, at cost 7,911 9,048 14,176 -12.6% -44.2% Premises and equipment, net 11,575 11,737 12,056 -1.4% -4.0% Accrued interest receivable 13,625 14,661 13,834 -7.1% -1.5% Other real estate owned - 5,000 5,000 -100.0% -100.0% Deferred income taxes - 24,794 22,209 -100.0% -100.0% Goodwill - - 5,253 - -100.0% Operating lease right-of-use asset 10,172 10,479 10,660 -2.9% -4.6% Bank-owned life insurance ("BOLI") 82,103 81,229 79,366 1.1% 3.4% Other assets 12,427 12,516 12,935 -0.7% -3.9% Total Assets $ 3,021,087 $ 3,118,126 $ 3,279,466 -3.1% -7.9% LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Non-interest bearing deposits $ 523,077 $ 514,648 $ 531,140 1.6% -1.5% Interest bearing deposits 2,086,069 2,121,375 2,142,433 -1.7% -2.6% Total deposits 2,609,146 2,636,023 2,673,573 -1.0% -2.4% FHLB advances 100,000 125,000 235,000 -20.0% -57.4% Subordinated debentures 43,397 43,335 43,210 0.1% 0.4% Operating lease liability 10,644 10,953 11,140 -2.8% -4.5% Other liabilities 11,818 10,896 12,259 8.5% -3.6% Total Liabilities 2,775,005 2,826,207 2,975,182 -1.8% -6.7% STOCKHOLDERS' EQUITY Preferred stock: $0.01 par value, 10,000 shares authorized - - - - - Additional paid-in capital preferred stock 25,243 25,243 25,243 - - Common stock: no par value, 40,000 shares authorized - - - - - Additional paid-in capital common stock 296,623 204,451 203,429 45.1% 45.8% Retained (deficit) earnings (29,228) 103,225 116,415 -128.3% -125.1% Accumulated other comprehensive loss (8,209) (2,653) (2,456) 209.4% 234.2% Treasury stock, at cost (38,347) (38,347) (38,347) - - Total Stockholders' Equity 246,082 291,919 304,284 -15.7% -19.1% Total Liabilities and Stockholders' Equity $ 3,021,087 $ 3,118,126 $ 3,279,466 -3.1% -7.9% Outstanding common shares 30,752 18,102 17,274
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Three Months Ended September 30, 2026 2025 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) $ 2,589,769 $ 34,213 5.24% $ 2,879,810 $ 38,278 5.27% Investment Securities 147,103 2,076 5.65% 134,419 1,957 5.82% Other Interest-earning assets(6) 225,546 2,086 3.67% 250,869 2,807 4.44% Total Interest-earning assets 2,962,418 38,375 5.14% 3,265,098 43,042 5.23% Non-interest-earning assets 128,587 115,212 - Total assets $ 3,091,005 $ 3,380,310 Interest-bearing liabilities: Interest-bearing demand accounts $ 541,227 $ 2,254 1.65% $ 504,860 $ 2,057 1.62% Money market accounts 452,814 3,391 2.97% 432,922 3,551 3.25% Savings accounts 230,980 97 0.17% 258,165 233 0.36% Certificates of Deposit 880,015 7,864 3.55% 978,503 9,445 3.83% Total interest-bearing deposits 2,105,036 13,606 2.56% 2,174,450 15,286 2.79% Borrowed funds 150,494 2,170 5.72% 330,694 4,045 4.85% Total interest-bearing liabilities 2,255,530 15,776 2.77% 2,505,144 19,331 3.06% Non-interest-bearing liabilities 531,203 559,185 Total liabilities 2,786,733 3,064,329 Stockholders' equity 304,272 315,981 Total liabilities and stockholders' equity $ 3,091,005 $ 3,380,310 Net interest income $ 22,599 $ 23,711 Net interest rate spread(1) 2.36% 2.17% Net interest margin(2) 3.03% 2.88% (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.
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Nine Months Ended September 30, 2026 2025 Average Balance Interest Earned/Paid Average Yield/Rate (3) Average Balance Interest Earned/PaidAverage Yield/Rate (3) (Dollars in thousands) Interest-earning assets: Loans Receivable(4)(5) $ 2,652,538$ 105,947 5.34% $ 2,935,643$ 115,855 5.28% Investment Securities 145,569 5,978 5.49% 128,570 5,308 5.52% Other interest-earning assets(6) 267,275 7,313 3.66% 273,678 9,252 4.52% Total Interest-earning assets 3,065,382 119,238 5.20% 3,337,891 130,415 5.22% Non-interest-earning assets 134,679 118,092 - Total assets $ 3,200,061 $ 3,455,983 Interest-bearing liabilities: Interest-bearing demand accounts $ 531,479$ 6,419 1.61% $ 531,311$ 6,656 1.67% Money market accounts 444,940 9,809 2.95% 415,214 9,954 3.21% Savings accounts 236,812 345 0.19% 256,384 601 0.31% Certificates of Deposit 927,913 24,722 3.56% 968,338 29,377 4.06% Total interest-bearing deposits 2,141,144 41,295 2.58% 2,171,247 46,588 2.87% Borrowed funds 218,906 9,162 5.60% 413,133 15,009 4.86% Total interest-bearing liabilities 2,360,050 50,457 2.86% 2,584,380 61,597 3.19% Non-interest-bearing liabilities 533,874 553,396 Total liabilities 2,893,924 3,137,776 Stockholders' equity 306,137 318,207 Total liabilities and stockholders' equity $ 3,200,061 $ 3,455,983 Net interest income $ 68,781 $ 68,818 Net interest rate spread(1) 2.34% 2.04% Net interest margin(2) 3.00% 2.76% (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.
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Financial Condition data by quarter Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 (In thousands, except book values) Total assets $ 3,021,087 $ 3,118,126 $ 3,269,097 $ 3,279,466 $ 3,353,065 Cash and cash equivalents 500,313 196,887 293,737 276,584 249,614 Securities 134,973 152,279 143,092 135,567 125,292 Loans receivable, net 2,179,697 2,587,984 2,655,981 2,691,091 2,788,932 Deposits 2,609,146 2,636,023 2,672,429 2,673,573 2,687,387 Borrowings 143,397 168,335 268,272 278,210 323,922 Stockholdersʼ equity 246,082 291,919 307,380 304,284 318,453 Book value per common share(1) $ 7.18 $ 14.73 $ 16.25 $ 16.15 $ 17.02 Tangible book value per common share (2) $ 7.18 $ 14.73 $ 15.95 $ 15.85 $ 16.71 Operating data by quarter Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 (In thousands, except for per share amounts) Net interest income $ 22,599 $ 23,345 $ 22,837 $ 24,223 $ 23,711 Provision for credit losses 114,961 18,987 2,788 12,195 4,080 Non-interest (loss) income 5,172 (470) 2,101 1,943 2,745 Non-interest expense 21,799 22,132 15,551 31,385 16,570 Income tax expense (benefit) 23,464 (3,468) 1,695 (5,385) 1,544 Net income (loss) $ (132,453) $ (14,776) $ 4,904 $ (12,029) $ 4,262 Net income (loss) per diluted share $ (6.92) $ (0.85) $ 0.26 $ (0.73) $ 0.22 Common Dividends declared per share $ - $ 0.08 $ 0.08 $ 0.16 $ 0.16 Financial Ratios(3) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 Return on average assets (17.00% ) (1.83% ) 0.61% (1.44% ) 0.50% Return on average stockholders' equity (172.70% ) (19.22% ) 6.50% (14.99% ) 5.35% Net interest margin 3.03% 3.03% 2.95% 3.03% 2.88% Stockholders' equity to total assets 8.15% 9.36% 9.40% 9.28% 9.50% Efficiency Ratio(4) 78.50% 96.75% 62.36% 119.95% 62.63% Asset Quality Ratios Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 (In thousands, except for ratio %) Non-Accrual Loans(5) $ 22,422 $ 61,234 $ 59,805 $ 63,255 $ 93,517 Non-Accrual Loans as a % of Total Loans(5) 1.00% 2.33% 2.22% 2.32% 3.31% ACL as % of Non-Accrual Loans 313.4% 73.5% 54.5% 53.3% 40.4% Individually Analyzed Loans $ 41,194 $ 124,832 $ 160,600 $ 162,226 $ 129,358 Criticized Loans(5) 152,733 206,977 208,341 170,789 220,769 Classified Loans(5) 46,119 160,454 194,663 188,735 228,256 Past Due loans (5) 52,169 122,759 107,947 99,132 174,006 (1) Calculated by dividing stockholders' equity, less preferred equity, by shares outstanding. (2) Calculated by dividing tangible stockholdersʼ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholdersʼ common equity is stockholdersʼ 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.” (5) Excludes loans include Held for Sale loan.
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Recorded Investment in Loans Receivable by quarter Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 (In thousands) Residential one-to-four family $ 214,707 $ 218,750 $ 223,708 $ 226,708 $ 227,140 Commercial and multi-family 1,753,542 2,009,865 2,021,827 2,040,768 2,080,088 Cannabis related 4,070 69,190 68,876 69,293 69,102 Construction 13,434 33,298 68,362 68,521 105,980 Commercial business 126,172 157,523 160,088 168,459 192,762 Business Express 64,503 68,949 71,215 74,862 78,253 Home equity 72,710 73,935 72,716 74,332 73,566 Consumer 2,376 3,401 3,584 3,580 2,042 $ 2,251,514 $ 2,634,911 $ 2,690,376 $ 2,726,523 $ 2,828,933 Less: Deferred loan fees, net (1,547) (1,947) (1,817) (1,741) (2,198) Allowance for credit losses on loans (70,270) (44,980) (32,578) (33,691) (37,803) Total loans, net $ 2,179,697 $ 2,587,984 $ 2,655,981 $ 2,691,091 $ 2,788,932 Non-Accruing Loans in Portfolio by quarter (1) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 (In thousands) Residential one-to-four family $ 3,018 $ 1,515 $ 1,576 $ 1,554 $ 1,410 Commercial and multi-family 17,491 54,478 52,297 52,159 70,546 Construction - 2,587 3,173 4,897 2,310 Commercial business 1,724 2,397 2,418 3,725 17,442 Business Express - - - - 1,335 Home equity 189 257 341 294 474 Total: $ 22,422 $ 61,234 $ 59,805 $ 62,629 $ 93,517 (1) Excludes Held for Sale loan Distribution of Deposits by quarter Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 (In thousands) Demand: Non-Interest Bearing $ 523,076 $ 514,648 $ 521,317 $ 531,140 $ 536,908 Interest Bearing 536,344 517,627 511,465 501,172 477,427 Money Market 447,605 446,918 448,397 426,138 422,424 Sub-total: $ 1,507,025 $ 1,479,193 $ 1,481,179 $ 1,458,450 $ 1,436,759 Savings and Club 229,087 230,532 240,048 243,670 254,554 Certificates of Deposit 873,034 926,298 951,202 971,453 996,074 Total Deposits: $ 2,609,146 $ 2,636,023 $ 2,672,429 $ 2,673,573 $ 2,687,387 Reconciliation of GAAP to Non-GAAP Financial Measures by quarter Tangible Book Value per Share Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 (In thousands, except per share amounts) Total Stockholders' Equity $ 246,082 $ 291,919 $ 307,380 $ 304,284 $ 318,453 Less: goodwill - - 5,253 5,253 5,253 Less: preferred stock 25,243 25,243 25,243 25,243 25,243 Total tangible common stockholders' equity 220,839 266,676 276,884 273,788 287,957 Common shares outstanding 30,752 18,102 17,359 17,274 17,228 Book value per common share $ 7.18 $ 14.73 $ 16.25 $ 16.15 $ 17.02 Tangible book value per common share $ 7.18 $ 14.73 $ 15.95 $ 15.85 $ 16.71 Efficiency Ratios Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 (In thousands, except for ratio %) Net interest income $ 22,599 $ 23,345 $ 22,837 $ 24,223 $ 23,711 Non-interest (loss)income 5,172 (470) 2,101 1,943 2,745 Total income 27,771 22,875 24,938 26,166 26,456 Non-interest expense 21,799 22,132 15,551 31,385 16,570 Efficiency Ratio 78.50% 96.75% 62.36% 119.95% 62.63% Contact: Jawad Chaudhry,
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EVP, CFO & Treasurer (201) 823-0700 Source: BCB Bancorp, Inc.