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BCB BANCORP INC (BCBP)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 EPS of $0.22 rose 22% QoQ and beat S&P Global consensus by ~3% (actual $0.22 vs. $0.2133 estimate), while “revenue” (S&P definition) missed ($22.38M vs. $25.83M), reflecting stronger bottom-line than top-line versus expectations; dividend maintained at $0.16 per share payable Nov 24, 2025 . EPS and revenue estimates from S&P Global*.
  • Net interest margin expanded to 2.88% (Q2: 2.80%; Q3’24: 2.58%), driven by a 10 bp sequential decline in the cost of interest-bearing liabilities to 3.06% despite flat asset yields; management emphasized funding optimization and balance sheet mix .
  • Asset quality remained the key overhang: net charge-offs were $16.9M, including a $12.7M charge-off of a cannabis-related relationship previously reserved; nonaccrual loans fell QoQ to $93.5M but remain elevated YoY .
  • Deposits were stable at $2.687B (vs. $2.662B in Q2) and FHLB advances stepped down to $281M (Q2: $336M), supporting liquidity and capital ratio improvement narrative .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expansion continued (2.88% in Q3 vs. 2.80% in Q2) as management “successfully [managed] the funding profile of the Bank,” reducing cost of interest-bearing liabilities to 3.06% .
  • Deposits stabilized to $2.687B (+$24.9M QoQ), while FHLB advances declined ~$55M QoQ, lowering wholesale funding reliance and fortifying liquidity .
  • Non-interest income improved sequentially to $2.745M (+32% QoQ) on higher BOLI income and equity gains, aiding “another profitable quarter with increasing capital ratios [and] strong liquidity” .

What Went Wrong

  • Elevated credit costs: net charge-offs of $16.9M, including a $12.7M cannabis-related charge-off upon reclassification to OREO; provision remained high at $4.1M (Q2: $4.9M) .
  • Asset quality still stressed: nonaccruals at $93.5M (3.31% of loans) vs. $35.3M in Q3’24; ACL coverage of nonaccruals at 40.4% vs. 98.2% a year ago .
  • Operating leverage pressure: efficiency ratio worsened to 62.6% (Q2: 60.6%) as non-interest expense rose 8.5% QoQ, led by compensation, data processing, and regulatory assessments .

Financial Results

P&L and Profitability (Company-reported)

MetricQ3 2024Q2 2025Q3 2025
Total income = NII + Non-interest income ($USD Thousands)26,172 25,178 26,456
Net Interest Income ($USD Thousands)23,045 23,102 23,711
Provision for Credit Losses ($USD Thousands)2,890 4,891 4,080
Non-interest Income ($USD Thousands)3,127 2,076 2,745
Non-interest Expense ($USD Thousands)13,929 15,268 16,570
Net Income ($USD Thousands)6,668 3,564 4,262
Diluted EPS ($)0.36 0.18 0.22
Net Interest Margin (%)2.58% 2.80% 2.88%
Efficiency Ratio (%)53.22% 60.64% 62.63%

Actual vs S&P Global Consensus (Q3 2025)

MetricConsensusActualSurprise
Primary EPS$0.2133*$0.22*+3.1% (beat)
Revenue ($)$25.83M*$22.38M*-13.4% (miss)
Net Income Normalized ($)$3.66M*$4.26M*+16.5% (beat)
Values retrieved from S&P Global*.
Note: Company “Total income” (NII + non-interest income) was $26.46M and is not directly comparable to S&P “Revenue” definition .

Balance Sheet and Asset Quality Highlights

MetricQ3 2024Q2 2025Q3 2025
Total Assets ($USD Thousands)3,613,770 3,380,461 3,353,065
Deposits ($USD Thousands)2,724,580 2,661,534 2,687,387
FHLB Advances ($USD Thousands)533,466 335,636 280,774
Loans, net ($USD Thousands)3,087,914 2,860,453 2,788,932
Nonaccrual Loans ($USD Thousands)35,330 101,764 93,517
ACL as % of Nonaccruals98.2% 49.8% 40.4%

KPIs

KPIQ3 2024Q2 2025Q3 2025
Yield on Interest-Earning Assets (%)5.44% 5.24% 5.23%
Cost of Interest-Bearing Liabilities (%)3.62% 3.16% 3.06%
Net Interest Margin (%)2.58% 2.80% 2.88%
ROAA (annualized)0.72% 0.42% 0.50%
ROAE (annualized)8.29% 4.55% 5.35%
Efficiency Ratio (%)53.22% 60.64% 62.63%

Loan Portfolio Mix (Recorded Investment, gross)

Category ($USD Thousands)Q3 2024Q2 2025Q3 2025
Residential 1–4 Family241,050 230,917 227,140
Commercial & Multi-Family2,296,886 2,177,268 2,135,385
Construction146,471 116,214 110,824
Commercial Business371,365 315,333 279,976
Home Equity67,566 71,587 73,566
Consumer2,309 2,075 2,042
Total Gross Loans3,125,647 2,913,394 2,828,933

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal financial guidanceFY/Q4 2025None disclosed None disclosed Maintained (no formal metrics)
Quarterly dividend per shareQ3 2025 dividend (payable Nov 24, 2025)$0.16 (declared Q2; payable Aug 25, 2025) $0.16 (declared Q3; payable Nov 24, 2025) Maintained

Earnings Call Themes & Trends

Note: No Q3’25 earnings call transcript was available in the document set; themes reflect company press releases.

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Asset quality / Cannabis exposureQ1: Established $13.7M specific reserve for a $34.2M cannabis loan; nonaccruals rose to $99.8M . Q2: Nonaccruals $101.8M; continued elevated provisioning and classified loans .Charged off $12.7M related to cannabis and reclassified collateral to OREO; nonaccruals fell to $93.5M; provision $4.1M .Stabilizing but still elevated risk
NIM / Funding costsNIM 2.59% in Q1; cost of interest-bearing liabilities 3.33% . NIM 2.80% in Q2; cost 3.16% .NIM 2.88%; cost down to 3.06%; CEO: “successfully managing the funding profile” .Improving
Deposits & liquidityDeposits $2.687B in Q1; FHLB advances $405.5M . Q2 deposits $2.662B; FHLB advances $335.6M .Deposits $2.687B; FHLB advances $280.8M; liquidity described as strong .Improving liquidity profile
Expenses & efficiencyEfficiency 61.6% in Q1; opex flat YoY . Q2 efficiency 60.6%; opex up YoY on comp & tech .Efficiency 62.6%; opex up QoQ on comp, data processing, regulatory fees .Mixed (opex pressures)

Management Commentary

  • “We are pleased to report another profitable quarter with increasing capital ratios, a strong liquidity position, and continued focus on optimizing both the asset and liability sides of our balance sheet. Our net interest margin continued to expand on a linked quarter basis highlighting our efforts in successfully managing the funding profile of the Bank.” — Michael Shriner, President & CEO .
  • “The net charge-offs in the quarter were elevated primarily due to the $12.7 million charge-off of previously established specific reserves for a cannabis-related relationship, as reported in our first quarter press release.” — Michael Shriner .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available in the retrieved documents; analysis relies on the 8‑K press release and accompanying tables .

Estimates Context

  • EPS modestly beat while S&P “Revenue” missed; normalized net income beat. Street models may adjust toward: higher NIM run-rate, slightly higher opex baseline, and moderated but persistent credit costs given cannabis portfolio commentary . EPS, revenue, and normalized net income estimates and actuals from S&P Global*.

Key Takeaways for Investors

  • Credit remains the swing factor: a large cannabis relationship has been charged off and moved to OREO; nonaccruals declined sequentially but remain elevated, implying continued provisioning sensitivity .
  • Funding progress is tangible: cost of interest-bearing liabilities fell 10 bps QoQ to 3.06%, supporting NIM expansion to 2.88%; further deleveraging of FHLB advances improves earnings resilience if rate cuts compress asset yields .
  • Core profitability is stabilizing: sequential growth in net income (+19.6%) despite elevated provision, aided by better non-interest income and NIM expansion .
  • Expense pressure is a watch item: efficiency ratio deteriorated to 62.6% on higher comp, tech, and regulatory costs—monitor for normalization as credit costs abate .
  • Dividend intact at $0.16 per quarter signals management’s confidence in capital and liquidity positioning despite credit headwinds .
  • Near-term trading setup: stock likely reacts to signs of sustained NIM expansion and further reduction in criticized/nonaccrual balances; any new credit surprises, especially within cannabis or CRE, remain the principal negative catalyst .

Footnotes:

  • EPS, revenue, and normalized net income estimates and actuals marked with an asterisk (*) are Values retrieved from S&P Global.