BCB Bank has reported a first-quarter net interest margin of 2.59%, showing a gradual improvement from 2.53% in the previous quarter and 2.50% in the same period last year. Despite this positive trend, the bank faced financial challenges resulting in a quarterly loss.
The primary factor contributing to the loss was a $13.7 million specific reserve linked to a $34.2 million loan within the cannabis sector. The borrower, although current on payments, has seen a significant decline in financial health, prompting BCB Bank to transition the loan to non-accrual status and set aside the substantial reserve.
Additionally, BCB Bank increased its reserves by $3.1 million for its discontinued Business Express Loan portfolio. This decision was influenced by the portfolio's ongoing deteriorating trend alongside prevailing macroeconomic difficulties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for BCB Bancorp Inc (BCBP, Financial) is $12.25 with a high estimate of $15.00 and a low estimate of $10.00. The average target implies an upside of 30.32% from the current price of $9.40. More detailed estimate data can be found on the BCB Bancorp Inc (BCBP) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, BCB Bancorp Inc's (BCBP, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BCB Bancorp Inc (BCBP, Financial) in one year is $12.46, suggesting a upside of 32.55% from the current price of $9.4. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BCB Bancorp Inc (BCBP) Summary page.
