Executive Summary

Q1 2025 printed a net loss of $8.3M and diluted EPS of ($0.51), driven by a $20.8M provision for credit losses, including a $13.7M specific reserve on a $34.2M cannabis-sector loan and an additional $3.1M reserve on the discontinued Business Express Loan portfolio .
EPS materially missed Wall Street consensus (est. $0.22 vs. actual ($0.51)); operating revenue was modestly below consensus (est. $24.28M vs. actual $23.80M) as NIM improved to 2.59% but loan and deposit balances declined . Values retrieved from S&P Global*.
Credit quality deteriorated: non-accrual loans surged to $99.8M (3.36% of loans) and net charge-offs rose to $4.2M; ACL coverage of non-accruals fell to 51.6% from 77.8% in Q4 2024 .
Management highlighted proactive risk management, stronger capital from 2024 actions, reduced wholesale funding (brokered deposits down $112.5M), and dividend maintained at $0.16/share, signaling confidence amid credit remediation .
Near-term stock reaction catalyst: the unexpected loss and step-up in reserves raise credit concerns; NIM improvement and deposit mix shift offer partial offsets. Expect focus on cannabis exposure resolution, non-accrual trajectory, and further reserve adequacy .

What Went Well and What Went Wrong

What Went Well

Net interest margin improved to 2.59% (vs. 2.53% in Q4 2024 and 2.50% in Q1 2024) as cost of interest-bearing liabilities fell 24 bps q/q to 3.33% .
Reduced reliance on wholesale funding: brokered deposits fell $112.5M; debt obligations decreased by $49.8M via FHLB maturities/paydowns, improving funding costs and liability profile .
Management emphasized disciplined risk management: “These credit actions…reflect our disciplined and proactive approach to risk management…we remain well-capitalized,” and noted bolstering of the credit risk team and conservative portfolio re-rating .

What Went Wrong

Large provision drove a GAAP loss: provision for credit losses jumped to $20.8M from $4.2M in Q4 2024, primarily due to a $13.7M specific reserve on a cannabis-sector loan placed on non-accrual .
Asset quality deterioration: non-accrual loans more than doubled q/q to $99.8M (3.36% of loans), net charge-offs rose to $4.2M, and ACL coverage of non-accruals dropped to 51.6% from 77.8% .
Balance sheet contraction: deposits declined $64.4M q/q to $2.687B; net loans fell $78.6M q/q to $2.918B; cash and equivalents decreased $64.5M as wholesale funding was paid down, constraining flexibility short term .

Financial Results

Income Statement and EPS vs Prior Periods and Consensus

Metric	Q1 2024	Q4 2024	Q1 2025	Q1 2025 Consensus*
Diluted EPS ($)	$0.32	$0.16	($0.51)	$0.22*
Net Income ($000)	$5,866	$3,272	($8,324)	—
Net Interest Income ($000)	$23,143	$22,194	$22,005	—
Provision for Credit Losses ($000)	$2,088	$4,154	$20,845	—
Non-Interest Income ($000)	$2,109	$938	$1,791	—
Non-Interest Expense ($000)	$14,838	$14,367	$14,660	—
Operating Revenue ($000) (NII+Non-Interest)	$25,252	$23,132	$23,796	$24,276*

Notes: Values retrieved from S&P Global*.
Interpretation: EPS was a significant miss versus consensus due to the outsized provision; operating revenue slightly below consensus.

Margins and Efficiency

Metric	Q1 2024	Q4 2024	Q1 2025
Net Interest Margin (%)	2.50%	2.53%	2.59%
Efficiency Ratio (%)	58.76%	62.11%	61.61%
ROA (Annualized, %)	0.61%	0.36%	(0.95%)
ROE (Annualized, %)	7.46%	4.04%	(10.40%)

Balance Sheet and Credit KPIs

Metric	Q1 2024	Q4 2024	Q1 2025
Deposits ($000)	$2,991,659	$2,750,858	$2,686,508
Loans Receivable, Net ($000)	$3,226,877	$2,996,259	$2,917,610
Cash & Equivalents ($000)	$352,448	$317,282	$252,750
Non-Accrual Loans ($000)	$22,241	$44,708	$99,833
Non-Accruals % of Loans	0.68%	1.48%	3.36%
ACL % of Non-Accruals	155.4%	77.8%	51.6%
Net Charge-Offs ($000)	$1,100	$4,100	$4,200
Book Value/Share ($)	$17.24	$17.54	$16.87
Tangible Book/Share ($)	$16.93	$17.23	$16.56

Loan Portfolio Mix (Selected Categories)

Category ($000)	Q1 2024	Q4 2024	Q1 2025
Commercial & Multi-Family	$2,392,970	$2,246,677	$2,221,218
Construction	$180,975	$135,434	$118,779
Commercial Business	$378,073	$342,799	$330,358
Residential 1–4 Family	$244,762	$239,870	$232,456
Home Equity	$65,518	$66,769	$66,479

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q1 2025	$0.16	$0.16 (declared payable May 21, 2025)	Maintained
Revenue/margins/OpEx/OI&E/tax rate	Q1 2025	Not provided	Not provided	—

Management did not issue quantitative forward guidance; the company reiterated balance sheet optimization and credit remediation priorities. Dividend continuity signals confidence in capital position .

Earnings Call Themes & Trends

Note: No earnings call transcript was available for Q1 2025 in our document catalog, so themes rely on management’s press release commentary [List: 0 transcripts].

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Credit quality and reserves	Non-accruals rose to $35.3M; provision $2.9M; net charge-offs $3.4M	Non-accruals up to $99.8M; provision $20.8M; net charge-offs $4.2M; cannabis loan specific reserve $13.7M; BEL portfolio reserve +$3.1M	Deteriorating; proactive reserving
Funding mix and brokered deposits	Deposits fell; brokered balance reductions initiated	Brokered deposits reduced by $112.5M; deposits down $64.4M; debt obligations down $49.8M	Continued de-risking of funding
Capital actions (sub debt)	$40M sub debt offering completed; equity up; preferred issuance	Capital actions in 2024 underpin “well-capitalized” status; dividend maintained	Stable/Supportive
Margin dynamics	NIM 2.58% (Q3); cost of liabilities up y/y	NIM 2.59%; cost of interest-bearing liabilities down to 3.33%	Improving NIM; easing funding costs
Macro/tariffs/inflation	Inflation/interest-rate headwinds cited	Broader macro risks cited (tariffs, inflation, recessionary concerns)	Persistent macro caution

Management Commentary

“Our first-quarter loss was primarily driven by a $13.7 million specific reserve tied to a $34.2 million loan in the cannabis sector… We also increased reserves for our discontinued Business Express Loan portfolio by $3.1 million” — Michael Shriner, President & CEO .
“These credit actions have impacted short-term results… we remain well-capitalized, giving us the flexibility to address credit challenges head-on.” — Michael Shriner .
“BCB Bank has bolstered its credit risk team… adjusted the risk ratings on a number of loans to better reflect current market realities.” — Michael Shriner .
Dividend declaration: $0.16/share, payable May 21, 2025 to holders of record May 7, 2025 .

Q&A Highlights

No Q1 2025 earnings call transcript was available in our records; therefore, Q&A themes and clarifications could not be sourced. Focus areas for investor engagement likely include reserve adequacy, non-accrual migration (especially cannabis exposure), and deposit/core funding trajectory [List: 0 transcripts] .

Estimates Context

Metric	Q1 2025 Consensus*	Actual	Surprise
Primary EPS Consensus Mean	$0.22*	($0.51)	Miss
Revenue Consensus Mean ($000)	$24,276*	$23,796 (NII + Non-Interest)	Slight Miss
Primary EPS – # of Estimates	3*	—	—
Revenue – # of Estimates	3*	—	—

Notes: Values retrieved from S&P Global*. For banks, “Revenue Consensus” is typically benchmarked against operating revenue (net interest income + non-interest income).

Key Takeaways for Investors

The loss was credit-driven, not margin-driven: NIM improved to 2.59%, but the $20.8M provision (including a large cannabis-sector specific reserve) overwhelmed core earnings .
Asset quality is the primary overhang: non-accruals jumped to 3.36% of loans; watch remediation progress and whether additional specific reserves are needed .
Funding risk reduced: brokered deposits fell $112.5M and FHLB advances declined; this should aid funding costs and NIM if deposit growth stabilizes .
Capital and dividend: management asserts a well-capitalized position and maintained the $0.16 dividend, supporting investor confidence amidst restructuring .
Estimate resets likely: Street EPS and revenue forecasts should reflect a higher credit cost run-rate and slower balance sheet growth until credit normalizes (EPS miss vs. $0.22; operating revenue slightly below $24.28M) . Values retrieved from S&P Global*.
Near-term trading: Expect sensitivity to any updates on cannabis exposure resolution, non-accrual migration, and reserve coverage; positive catalysts would be asset quality stabilization and further funding cost improvements .
Medium-term thesis: If credit remediation progresses and deposit mix continues improving, earnings power can recover with NIM tailwinds; core revenue resiliency hinges on loan growth resumption post balance sheet optimization .

Additional Reference (Prior Two Quarters)

Q4 2024: Net income $3.3M; EPS $0.16; NIM 2.53%; provision $4.2M; non-accruals $44.7M (1.48% of loans) .
Q3 2024: Net income $6.7M; EPS $0.36; NIM 2.58%; provision $2.9M; sub-debt $40M completed; non-accruals $35.3M (1.11% of loans) .

BCB BANCORP INC (BCBP)·Q1 2025 Earnings Summary