- BCB Bancorp (BCBP, Financial) reported a net loss of $8.3 million in Q1 2025.
- A quarterly cash dividend of $0.16 per share was declared.
- Non-accrual loans surged to $99.8 million as of March 31, 2025.
BCB Bancorp, Inc. (BCBP), headquartered in Bayonne, N.J., revealed a net loss of $8.3 million for the first quarter of 2025. This represents a significant downturn from a net income of $5.9 million recorded in the same period last year. The loss per diluted share was reported as ($0.51), a consequence primarily attributed to a $13.7 million specific reserve for a $34.2 million cannabis sector loan.
The bank's credit quality showed signs of distress with total non-accrual loans increasing to $99.8 million, comprising 3.36% of gross loans, up from $44.7 million in the previous quarter. The allowance for credit losses stood at $51.5 million, marking 1.73% of gross loans at the end of the quarter.
Despite these challenges, BCB Bancorp maintained its quarterly dividend payout, declaring a cash dividend of $0.16 per share, payable on May 21, 2025, to shareholders on record as of May 7, 2025. The bank emphasized its well-capitalized status, supported by positive capital actions undertaken during 2024.
The balance sheet saw a decline in total assets, which decreased by 3.5% to $3.474 billion, with deposits reducing by 2.3% to $2.687 billion, largely due to a reduction in brokered deposits. The net interest margin improved slightly to 2.59%, and the efficiency ratio showed modest progress, improving to 61.6% from 62.1% in the previous quarter.
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