BCB Bancorp(BCBP) - 2024 Q3 - Quarterly Report

Financial Position - As of September 30, 2024, the company reported total assets of $3.614 billion, a decrease of$218.6 million or 5.7% from $3.832 billion at December 31, 2023[104] - Loans receivable, net, decreased by$191.8 million or 5.8% to $3.088 billion, primarily due to loan payoffs exceeding loan originations[104] - Total deposits decreased by$254.5 million or 8.5% to $2.725 billion, with a significant decline in certificates of deposit by$175.8 million[104] - Stockholders' equity increased by $14.1 million or 4.5$328.1 million, driven by an increase in additional paid-in capital and retained earnings[104] - Total outstanding borrowings increased to $533.5 million at September 30, 2024, compared to$510.4 million at December 31, 2023[114] Income and Expenses - Net interest income for the three months ended September 30, 2024, was $23.045 million, compared to$25.680 million for the same period in 2023[107] - Net interest income decreased by $2.6 million, or 10.3$23.0 million in Q3 2024 from $25.7 million in Q3 2023, primarily due to higher interest expense[110] - Interest income fell by$441 thousand, or 0.9%, to $48.6 million in Q3 2024, while average yield increased by 13 basis points to 5.44$2.2 million to $25.6 million in Q3 2024, driven by a 45 basis point increase in the average rate on interest-bearing liabilities to 3.62$8.1 million, or 34.5%, to $15.4 million, primarily due to a$10.3 million decline in net interest income[113] - Non-interest income increased by $1.1 million to$2.0 million for the first nine months of 2024, driven by gains on equity securities[113] Credit and Capital Ratios - The allowance for credit losses increased by $1.1 million to$34.7 million, representing 98.2% of non-accruing loans and 1.11% of gross loans[104] - The provision for credit losses was $7.4 million for the first nine months of 2024, compared to$4.2 million for the same period in 2023[113] - As of September 30, 2024, the Bank's Community Bank Leverage Ratio was 9.84%, exceeding the minimum requirement of 9%[118] - The Bancorp's Total Capital to Risk-Weighted Assets ratio was 13.14% as of September 30, 2024, above the 8.00% requirement for capital adequacy[120] - The Tier 1 Capital to Risk-Weighted Assets ratio was 10.38% as of September 30, 2024, surpassing the 6.00% minimum requirement[120] - The Common Equity Tier 1 Capital to Risk-Weighted Assets ratio was 9.32% as of September 30, 2024, exceeding the 4.50% requirement[120] - The Bank exceeded all regulatory capital requirements as of September 30, 2024, indicating a strong capital position[118] Interest Rate Risk Management - The Asset/Liability Committee is responsible for managing interest rate risk, which is a significant concern due to the mismatch in maturities of assets and liabilities[122] - A 100-basis point decrease in interest rates would result in a 0.25% increase in NPV as of September 30, 2024, compared to a 0.66% increase at December 31, 2023[123] Legal Proceedings - As of September 30, 2024, the Company was not involved in any material legal proceedings that could adversely affect its financial condition[126] Branch Operations - The company operates 23 branches in New Jersey and 3 branches in New York, focusing on community-oriented financial services[100]