Executive Summary

Q4 2024 diluted EPS was $0.16 and net income was $3.3M; on an adjusted, non-GAAP basis excluding unrealized equity losses and a non-performing loan sale, EPS would have been $0.24 and net income $4.1M .
Total income (net interest income + non-interest income) was $23.1M; net interest margin compressed to 2.53% amid higher funding costs, while provision for credit losses rose to $4.2M .
The Board declared a $0.16 quarterly dividend, unchanged vs prior quarters, payable Feb 24, 2025 to holders of record Feb 7, 2025 .
Asset quality deteriorated: non-accrual loans increased to $44.7M (1.48% of gross loans) and net charge-offs rose to $4.1M, a key near-term stock narrative driver .

What Went Well and What Went Wrong

What Went Well

Deposits increased sequentially to $2.751B from $2.725B, reflecting stabilization in funding after brokered deposit withdrawals earlier in 2024 .
Cost of interest-bearing liabilities eased QoQ (3.57% vs 3.62% in Q3), partially supporting NIM despite rate pressure .
Management highlighted balance sheet actions: reduced wholesale funding reliance, building CECL reserves, and positioning for prudent loan growth. “We meaningfully reduced our exposure to wholesale funding… strengthened our capital position… prudently building up our CECL reserves…” — President & CEO Michael Shriner .

What Went Wrong

Non-interest income fell to $0.94M (down ~70% YoY), driven by $0.66M losses on equity investments and a $0.57M loss on sale of a non-performing loan .
Provision for credit losses increased to $4.2M (vs $2.9M in Q3 and $1.9M in Q4 2023) amid higher non-accruals and net charge-offs .
Net interest income declined to $22.2M (−7.2% YoY), with NIM of 2.53% pressured by higher funding costs (average yield on interest-bearing liabilities 3.57% vs 3.45% YoY) .

Financial Results

Core P&L and Margin Trends

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Diluted EPS ($)	$0.35	$0.14	$0.36	$0.16
Total Income ($USD Millions)	$27.15	$20.41	$26.17	$23.13
Net Interest Margin (%)	2.57%	2.60%	2.58%	2.53%
Net Interest Income ($USD Millions)	$23.92	$23.64	$23.05	$22.19
Provision for Credit Losses ($USD Millions)	$1.93	$2.44	$2.89	$4.15
Non-Interest Income ($USD Millions)	$3.23	−$3.23	$3.13	$0.94
Efficiency Ratio (%)	61.02%	68.55%	53.22%	62.11%

Note: “Total Income” is net interest income + non-interest income, consistent with efficiency ratio calculation .

Non-Interest Income Breakdown

Component ($USD Millions)	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Fees & Service Charges	$1.45	$1.12	$1.20	$1.19
Gain/(Loss) on Sales of Loans	$0.01	−$4.56 (incl. impaired loan −$0.29)	$0.04	−$0.55
Realized/Unrealized Gain/(Loss) on Equity Investments	$1.03	−$0.22	$1.13	−$0.66
BOLI Income	$0.60	$0.67	$0.65	$0.64
Other	$0.07	$0.05	$0.11	$0.33
Total Non-Interest Income	$3.23	−$3.23	$3.13	$0.94

Balance Sheet and KPI Snapshot

KPI	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Total Deposits ($USD Billions)	$2.979	$2.935	$2.725	$2.751
Loans Receivable, Net ($USD Billions)	$3.280	$3.162	$3.088	$2.996
Non-Accrual Loans ($USD Millions)	$18.783	$32.448	$35.330	$44.708
Non-Accrual % of Total Loans	0.57%	1.01%	1.13%	1.48%
ACL as % of Total Loans	1.01%	1.10%	1.11%	1.15%
ROAA (Annualized)	0.63%	0.30%	0.72%	0.36%
ROAE (Annualized)	7.91%	3.52%	8.29%	4.04%
Dividend per Share Declared ($)	$0.16	$0.16	$0.16	$0.16

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q1 2025 payout (for Q4 2024 declaration)	$0.16 (Q3 2024)	$0.16, payable Feb 24, 2025; record Feb 7, 2025	Maintained
Net Interest Margin	FY/Q1 next	Not provided	Not provided (management commentary only)	N/A
Provision for Credit Losses	FY/Q1 next	Not provided	Not provided (CECL reserve build noted)	N/A
Loan Growth	FY/Q1 next	Not provided	“Positioning the Bank to gradually start lending” (directional only)	N/A

Other Q4 corporate actions: Exchange offer for $40M subordinated notes was extended to Dec 5, 2024; 97.5% tendered as of Dec 3, 2024 (capital actions support funding) .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was found in the document catalog (searched Dec 15, 2024–Feb 28, 2025; none available), so themes are inferred from company press releases [ListDocuments result; 0 transcripts].

Topic	Previous Mentions (Q2 2024 and Q3 2024)	Current Period (Q4 2024)	Trend
Funding mix & wholesale funding	Brokered deposit withdrawals pressured liquidity; NIM improved QoQ in Q2; subordinated debt offering ($40M, upsized) in Q3 to bolster capital	“Reduced exposure to wholesale funding,” working to replace higher-cost funding with core deposits	Improving funding profile; shift toward core deposits
Capital actions	Preferred stock issuance increased APIC; subordinated notes offering completed in Q3	Capital strengthened via retained earnings and capital actions	Strengthening capital base
Asset quality	Non-accruals rose to $32.4M (Q2) and $35.3M (Q3); higher provisions	Non-accruals rose further to $44.7M; net charge-offs $4.1M; provision $4.2M	Deterioration continued; active CECL build
Margin dynamics	NIM 2.60% (Q2), 2.58% (Q3); funding costs rising	NIM 2.53%; total liabilities cost 3.57% (vs 3.62% Q3)	Ongoing pressure; slight QoQ relief in cost of funds
Loan portfolio strategy	Agreement to sell $38.4M CRE/multifamily loans; losses recorded in Q2	Continued loan sales/payoffs exceeding originations; selective new lending ahead	Portfolio rightsizing; cautious new originations
Dividend	$0.16 maintained across Q2–Q4	$0.16 declared again	Stable shareholder return policy

Management Commentary

“We meaningfully reduced our exposure to wholesale funding and continue to work hard on replacing higher cost funding with core deposits… strengthened our capital position… prudently building up our CECL reserves… positioning the Bank to gradually start lending…” — Michael Shriner, President & CEO .
On balance sheet: Total assets decreased $233.3M YoY mainly on loan sales/paydowns; cash and equivalents increased $37.8M YoY; deposits declined $228.2M YoY driven by certificates/brokered withdrawals .

Q&A Highlights

No Q4 2024 earnings call transcript was available in the catalog; Q&A themes and any guidance clarifications cannot be assessed from transcripts (searched Dec 15, 2024–Feb 28, 2025; none found) [ListDocuments result; 0 transcripts].

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable due to a temporary data access limit; as a result, we cannot quantify beats/misses vs consensus for this quarter. If desired, we can refresh S&P Global estimates and re-run the comparison once access resumes.
Given the reported results, areas where estimates may adjust: higher credit costs (provision/net charge-offs), lower non-interest income, and NIM trajectory amid funding cost dynamics .

Key Takeaways for Investors

Asset quality is the near-term governor: non-accruals reached $44.7M (1.48% of loans) and net charge-offs rose to $4.1M; CECL builds and resolution pace will drive earnings variability .
Core profitability under rate pressure: NIM at 2.53% with average liability cost 3.57%; sustained improvement likely hinges on deposit mix shift and rate environment .
Funding mix stabilizing: deposits rose sequentially to $2.751B; management is focused on reducing wholesale/brokered reliance in favor of core deposits .
Capital actions provide cushion: preferred equity additions and $40M subordinated notes (exchange offer 97.5% tendered) bolster regulatory capital and flexibility .
Earnings sensitivity to non-interest income: equity security marks and loan sale losses materially impacted Q4; absent these, EPS would have been $0.24 vs reported $0.16 .
Dividend maintained at $0.16/share, signaling confidence in capital and liquidity despite credit headwinds .
Trading lens: watch upcoming disclosures for trends in non-accrual formation, net charge-offs, and deposit mix; improving credit metrics could be a positive catalyst, while further deterioration or NIM compression are downside risks .

BCB BANCORP INC (BCBP)·Q4 2024 Earnings Summary