BCB Bancorp, Inc. Reports Net Loss of $14.8 Million in the Second Quarter 2026; Board Approves Reincorporation in Delaware, Subject to Shareholder Approval
Rhea-AI Summary
BCB Bancorp (NASDAQ: BCBP) reported a net loss of $14.8 million, or ($0.85) per diluted share, for Q2 2026, versus net income of $4.9 million in Q1 2026 and $3.6 million in Q2 2025. The six‑month 2026 net loss was $9.9 million, or ($0.60) per diluted share.
Results were driven by a $19.0 million provision for credit losses, a $5.3 million non‑cash goodwill impairment, and a $2.6 million loss on a loan transferred to held‑for‑sale. Non‑accrual loans rose to $72.0 million, while the allowance for credit losses increased to $45.0 million (1.71% of gross loans, 62.5% of non‑accruals). Net interest margin improved to 3.03% and the cost of interest‑bearing liabilities fell to 2.87%. Total assets declined to $3.118 billion, deposits to $2.636 billion, and debt obligations to $168.3 million. The board suspended common and preferred dividends and approved a plan, subject to shareholder approval, to reincorporate in Delaware and move to annual director elections.
Positive
- Net interest margin up to 3.03% in Q2 2026 from 2.80% year ago
- Cost of interest‑bearing liabilities down to 2.87%, a 29 bp YoY decline
- Allowance for credit losses increased to $45.0 million, 1.71% of gross loans
- Allowance coverage of non‑accrual loans improved to 62.5% from 53.3% at year‑end
- Brokered deposits reduced by $28.6 million to $51.9 million
- FHLB advances and other debt obligations cut by $109.9 million to $168.3 million
- Management reports regulatory capital remains above well‑capitalized thresholds
- Board plans Delaware reincorporation and annual elections, signaling updated governance
Negative
- Q2 2026 net loss of $14.8 million, or ($0.85) per share
- Six‑month 2026 net loss of $9.9 million, deeper than prior‑year loss
- Provision for credit losses jumped to $19.0 million in Q2 2026
- Non‑cash goodwill impairment charge of $5.3 million fully wrote off goodwill
- Loss of $2.6 million on loan transferred to held‑for‑sale
- Non‑accrual loans increased to $72.0 million, 2.73% of gross loans
- Past due loans rose to $122.8 million, 4.66% of gross loans
- C&I portfolio net charge‑offs increased to $5.8 million in Q2 2026
- Common and preferred dividends suspended to preserve capital and liquidity
- Stockholders’ equity declined by $12.4 million to $291.9 million
News Explained
BCB has stopped three consumer lending categories while a credit review remains underway, with possible additional impacts not yet assessed.
BCB Bancorp has ceased originating residential mortgage, home-equity, and consumer loans, reducing the lending categories currently offered while its broader credit review remains underway.
The comprehensive loan-portfolio evaluation commenced on
The company is working toward completing the review by the end of the third quarter; until then, the stated alternatives include workouts, restructurings, and select loan sales.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 22 | Conference call notice | Neutral | +0.2% | Announced timing and access details for second-quarter 2026 results call |
| Jun 18 | Dividend suspension | Negative | -6.2% | Suspended common and preferred cash dividends to support capital preservation |
| Jun 05 | Inducement stock grant | Neutral | -0.3% | Granted 709,220 restricted shares to the newly appointed chief executive |
| Jun 01 | CEO appointment | Positive | +9.6% | Appointed Thomas M. O’Brien president and chief executive officer |
| Apr 21 | First-quarter earnings | Positive | +4.8% | Reported first-quarter net income, positive EPS and quarterly cash dividend |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Historical reactions aligned with the stated direction in four of five events; the inducement grant was the exception.
Key Terms
net interest margin financial
goodwill impairment financial
non-accrual loans financial
held-for-sale financial
FHLB advances financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
BAYONNE, N.J., Aug. 03, 2026 (GLOBE NEWSWIRE) -- BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported a net loss of
Executive Summary
- Total deposits were
$2.636 billion at June 30, 2026, compared to$2.672 billion at March 31, 2026. - Net interest margin was 3.03 percent for the second quarter of 2026, compared to 2.95 percent for the first quarter of 2026, and 2.80 percent for the second quarter of 2025.
- Total yield on interest-earning assets was 5.25 percent for the second quarter of 2026, compared to 5.21 percent for the first quarter of 2026, and 5.24 percent for the second quarter of 2025.
- Total cost of interest-bearing liabilities decreased 6 basis points to 2.87 percent for the second quarter of 2026, compared to 2.93 percent for the first quarter of 2026, and decreased 29 basis points from 3.16 percent for the second quarter of 2025.
- The efficiency ratio for the second quarter was 96.8 percent compared to 62.4 percent in the prior quarter, and 60.6 percent in the second quarter of 2025.
- The annualized return on average assets ratio for the second quarter was (1.83) percent, compared to 0.61 percent in the prior quarter, and 0.42 percent in the second quarter of 2025.
- The annualized return on average equity ratio for the second quarter was (19.22) percent, compared to 6.50 percent in the prior quarter, and 4.55 percent in the second quarter of 2025.
- The provision for credit losses was
$19.0 million in the second quarter of 2026 compared to$2.8 million for the first quarter of 2026. In the second quarter of 2025, the Bank recorded a provision of$4.9 million . - Total criticized and classified loans was
$367.4 million in the second quarter compared to$403.0 million at March 31, 2026. - The allowance for credit losses on loans as a percentage of non-accrual loans was 62.5 percent at June 30, 2026, compared to 54.5 percent for the prior quarter-end and 49.8 percent at June 30, 2025. Total non-accrual loans were
$72.0 million at June 30, 2026,$59.8 million at March 31, 2026 and$101.8 million at June 30, 2025. - Total loans receivable, net of the allowance for credit losses on loans, of
$2.588 billion at June 30, 2026, decreased from$2.860 billion at June 30, 2025.
The net loss for the second quarter of 2026 was primarily driven by a
“We are actively conducting a comprehensive review of the Bank’s loan portfolio with the assistance of independent consultants as part of our broader effort to strengthen the balance sheet and position the franchise for long-term success. It is too early in our evaluation to assess whether and to what extent additional loans, not captured in the second quarter results, may be impacted. While we remain focused on delivering sustainable operating performance, our immediate priority is to maintain disciplined balance sheet management and long-term value creation. As our evaluation continues in the third quarter, we will fully explore various alternatives to strengthen the credits or exit the relationships, which may include workouts and loan restructurings, such as potentially seeking additional collateral, interest rate adjustments, as well as select loan sales. In addition, the Bank has ceased originating residential mortgage, home equity, and consumer loans, as we believe the current risk-adjusted returns in these categories are not sufficiently attractive. At June 30, 2026, our capital remains above well capitalized. To help preserve capital at the bank and liquidity at the holding company, the board of directors agreed to suspend both common and preferred dividends at their June meeting. We have taken these steps that are focused on capital preservation to support our balance sheet strengthening initiatives and reinforce our commitment to building a safer, stronger, and more resilient institution.” said Tom O’Brien, President and Chief Executive Officer of the Company and the Bank.
Reincorporation in Delaware
The Company also announced today that the board has decided to change its state of incorporation to Delaware, and to end the current staggered board terms in favor of annual director elections. Mr. O’Brien noted: “the change to Delaware will align us with the vast majority of public companies and allows for updated governance provisions that will help place our company in line with prevailing public company governance practices. Later this quarter, we will call a special meeting of shareholders to be held late this year. The purpose of the meeting will be to seek shareholder approval to reincorporate in Delaware. The full presentation of these governance changes will be provided in a proxy statement in connection with the special meeting.”
Balance Sheet Review
Total assets decreased by
Total cash and cash equivalents decreased by
Loans receivable, net, decreased by
The allowance for credit losses on loans increased
Total investment securities increased by
Deposits decreased by
Debt obligations decreased by
Stockholders’ equity decreased by
Asset Quality
The Bank had non-accrual loans totaling
The allowance for credit losses on loans of
During the second quarter, the Bank transferred one loan on nonaccrual status to held-for-sale, which was written down to fair market value resulting in a loss of
The allowance for credit losses was 62.5 percent of non-accrual loans at June 30, 2026, compared to 54.5 percent of non-accrual loans at March 31, 2026, and 53.3 percent of non-accrual loans at December 31, 2025, respectively.
Mr. O’Brien noted that, “since June 1, 2026, we have been engaged on a comprehensive re-evaluation of the company’s credit portfolios with the assistance of independent consultants. Their initial feedback has been reflected in the loan loss reserving decisions made during the second quarter and we are working toward completion of that review by the end of the third quarter. With respect to the much larger commercial real estate portfolio, we are in the early stages of our analysis. Given the absolute size and complexity of these portfolios, this remains a work in progress.”
Second Quarter 2026 Income Statement Review
The Company reported a net loss of
Interest income decreased by
Interest expense decreased by
The net interest margin was 3.03 percent for the second quarter of 2026 compared to 2.80 percent for the second quarter of 2025. The increase in the net interest margin compared to the second quarter of 2025 was the result of a decrease in the cost of interest-bearing liabilities.
The provision for credit losses was
Non-interest income decreased by
Non-interest expense increased by
The income tax provision decreased by
Year-to-Date Income Statement Review
Net income decreased by
Net interest income increased
Net interest margin was 2.99 percent for the first six months of 2026, compared to 2.70 percent for the first six months of 2025. The increase in the net interest margin compared to the prior period was the result of a decrease in the cost of the Company’s interest-bearing liabilities, by 35 basis points to 2.90 percent and an increase in the rate earned on earning assets, by 1 basis point to 5.23 percent.
The provision for credit losses decreased by
Non-interest income decreased by
Non-interest expense increased by
The income tax benefit decreased by
Investor Conference Call
Management will host a conference call on Monday, August 3, 2026 at 8:45 a.m. Eastern Time to discuss the results.
Interested investors are invited to dial 1-800-715-9871 using conference ID 3209751 to participate in the call.
A replay of the call will be available at https://investorrelations.bcbcommunitybank.com/corporate-information/corporate-profile/default.aspx.
About BCB Bancorp, Inc.
Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has twenty-two branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branches in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.
Forward-Looking Statements
This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.
The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of global tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause increased loan delinquencies, a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: our ability to manage liquidity and capital in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages, the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability to effectively attract and deploy deposits; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levels and slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs; the results of the recently commenced and ongoing review of our loan portfolios; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios; the credit risk associated with our loan portfolio; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in our ability to access cost-effective funding; deposit flows; legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, rates and regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in the securities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to hire and retain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatory requirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere in this report, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K filed for the year ended December 31, 2024, and our other periodic reports that we file with the SEC.
Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This press release also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s financial results for the periods in question.
The Company provides measurements and ratios based on tangible stockholders’ equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
Contact:
Jawad Chaudhry,
EVP, CFO & Treasurer
(201) 823-0700
| Statements of Operations - Three Months Ended, | ||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 vs. March 31, 2026 | June 30, 2026 vs. June 30, 2025 | ||||||||||
| Interest and dividend income: | (In thousands, except per share amounts, Unaudited) | |||||||||||||
| Loans, including fees | $ | 35,856 | $ | 35,878 | $ | 38,650 | -0.1 | % | -7.2 | % | ||||
| Mortgage-backed securities | 960 | 839 | 765 | 14.4 | % | 25.5 | % | |||||||
| Other investment securities | 1,113 | 990 | 1,057 | 12.4 | % | 5.3 | % | |||||||
| FHLB stock and other interest-earning assets | 2,532 | 2,695 | 2,709 | -6.0 | % | -6.5 | % | |||||||
| Total interest and dividend income | 40,461 | 40,402 | 43,181 | 0.1 | % | -6.3 | % | |||||||
| Interest expense: | ||||||||||||||
| Deposits: | ||||||||||||||
| Demand | 5,413 | 5,170 | 5,584 | 4.7 | % | -3.1 | % | |||||||
| Savings and club | 112 | 136 | 217 | -17.6 | % | -48.4 | % | |||||||
| Certificates of deposit | 8,266 | 8,592 | 9,170 | -3.8 | % | -9.9 | % | |||||||
| 13,791 | 13,898 | 14,971 | -0.8 | % | -7.9 | % | ||||||||
| Borrowings | 3,325 | 3,667 | 5,108 | -9.3 | % | -34.9 | % | |||||||
| Total interest expense | 17,116 | 17,565 | 20,079 | -2.6 | % | -14.8 | % | |||||||
| Net interest income | 23,345 | 22,837 | 23,102 | 2.2 | % | 1.1 | % | |||||||
| Provision for credit losses | 18,987 | 2,788 | 4,891 | 581.0 | % | 288.2 | % | |||||||
| Net interest income after provision for credit losses | 4,358 | 20,049 | 18,211 | -78.3 | % | -76.1 | % | |||||||
| Non-interest (loss) income : | ||||||||||||||
| Fees and service charges | 1,313 | 1,191 | 1,305 | 10.2 | % | 0.6 | % | |||||||
| (Loss) gain on sales of loans | (2,607 | ) | 7 | - | -37342.9 | % | - | |||||||
| Realized and unrealized loss on equity investments | (248 | ) | (93 | ) | (108 | ) | 166.7 | % | 129.6 | % | ||||
| Bank-owned life insurance ("BOLI") income | 917 | 946 | 786 | -3.1 | % | 16.7 | % | |||||||
| Other | 155 | 50 | 93 | 210.0 | % | 66.7 | % | |||||||
| Total non-interest (loss) income | (470 | ) | 2,101 | 2,076 | -122.4 | % | -122.6 | % | ||||||
| Non-interest expense: | ||||||||||||||
| Salaries and employee benefits | 9,395 | 8,327 | 7,713 | 12.8 | % | 21.8 | % | |||||||
| Occupancy and equipment | 2,562 | 2,724 | 2,502 | -5.9 | % | 2.4 | % | |||||||
| Data processing and communications | 1,968 | 2,023 | 2,046 | -2.7 | % | -3.8 | % | |||||||
| Professional fees | 562 | 627 | 767 | -10.4 | % | -26.7 | % | |||||||
| Director fees | 244 | 246 | 313 | -0.8 | % | -22.0 | % | |||||||
| Regulatory assessment fees | 650 | 765 | 804 | -15.0 | % | -19.2 | % | |||||||
| Advertising and promotions | 489 | 200 | 216 | 144.5 | % | 126.4 | % | |||||||
| Other real estate owned, net | 130 | 150 | - | -13.3 | % | - | ||||||||
| Impairment of Goodwill | 5,253 | - | - | - | - | |||||||||
| Other | 879 | 489 | 907 | 79.8 | % | -3.1 | % | |||||||
| Total non-interest expense | 22,132 | 15,551 | 15,268 | 42.3 | % | 45.0 | % | |||||||
| (Loss) Income before income tax (benefit) provision | (18,244 | ) | 6,599 | 5,019 | -376.5 | % | -463.5 | % | ||||||
| Income tax (benefit) provision | (3,468 | ) | 1,695 | 1,455 | -304.6 | % | -338.4 | % | ||||||
| Net (Loss) Income | (14,776 | ) | 4,904 | 3,564 | -401.3 | % | -514.6 | % | ||||||
| Preferred stock dividends | - | 482 | 482 | - | - | |||||||||
| Net (Loss) Income available to common stockholders | $ | (14,776 | ) | $ | 4,422 | $ | 3,082 | -434.2 | % | -579.5 | % | |||
| Net (Loss) Income per common share-basic and diluted | ||||||||||||||
| Basic | $ | (0.85 | ) | $ | 0.26 | $ | 0.18 | -434.3 | % | -575.8 | % | |||
| Diluted | $ | (0.85 | ) | $ | 0.26 | $ | 0.18 | -434.3 | % | -575.8 | % | |||
| Weighted average number of common shares outstanding | ||||||||||||||
| Basic | 17,306 | 17,314 | 17,175 | -0.0 | % | 0.8 | % | |||||||
| Diluted | 17,306 | 17,314 | 17,175 | -0.0 | % | 0.8 | % | |||||||
| Statements of Operations - Six Months Ended, | ||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 vs. June 30, 2025 | ||||||
| Interest and dividend income: | (In thousands, except per share amounts, Unaudited) | |||||||
| Loans, including fees | $ | 71,734 | $ | 77,577 | -7.5 | % | ||
| Mortgage-backed securities | 1,799 | 1,326 | 35.7 | % | ||||
| Other investment securities | 2,103 | 2,025 | 3.9 | % | ||||
| FHLB stock and other interest-earning assets | 5,227 | 6,445 | -18.9 | % | ||||
| Total interest and dividend income | 80,863 | 87,373 | -7.5 | % | ||||
| Interest expense: | ||||||||
| Deposits: | ||||||||
| Demand | 10,583 | 11,002 | -3.8 | % | ||||
| Savings and club | 248 | 368 | -32.6 | % | ||||
| Certificates of deposit | 16,858 | 19,932 | -15.4 | % | ||||
| 27,689 | 31,302 | -11.5 | % | |||||
| Borrowings | 6,992 | 10,964 | -36.2 | % | ||||
| Total interest expense | 34,681 | 42,266 | -17.9 | % | ||||
| Net interest income | 46,182 | 45,107 | 2.4 | % | ||||
| Provision for credit losses | 21,775 | 25,736 | -15.4 | % | ||||
| Net interest income after provision for credit losses | 24,407 | 19,371 | 26.0 | % | ||||
| Non-interest income : | ||||||||
| Fees and service charges | 2,504 | 2,478 | 1.0 | % | ||||
| Gain (loss) on sales of loans | (2,600 | ) | - | - | ||||
| Realized and unrealized gain (loss) on equity investments | (341 | ) | (223 | ) | 52.9 | % | ||
| Bank-owned life insurance ("BOLI") income | 1,863 | 1,394 | 33.6 | % | ||||
| Other | 205 | 218 | -6.0 | % | ||||
| Total non-interest income | 1,631 | 3,867 | -57.8 | % | ||||
| Non-interest expense: | ||||||||
| Salaries and employee benefits | 17,722 | 15,116 | 17.2 | % | ||||
| Occupancy and equipment | 5,286 | 5,225 | 1.2 | % | ||||
| Data processing and communications | 3,991 | 3,890 | 2.6 | % | ||||
| Professional fees | 1,189 | 1,459 | -18.5 | % | ||||
| Director fees | 490 | 731 | -33.0 | % | ||||
| Regulatory assessments | 1,415 | 1,513 | -6.5 | % | ||||
| Advertising and promotions | 689 | 395 | 74.4 | % | ||||
| Other real estate owned, net | 280 | - | - | |||||
| Impairment of Goodwill | 5,253 | - | ||||||
| Other | 1,368 | 1,599 | -14.4 | % | ||||
| Total non-interest expense | 37,683 | 29,928 | 25.9 | % | ||||
| Loss before income tax benefit | (11,645 | ) | (6,690 | ) | 74.1 | % | ||
| Income tax benefit | (1,773 | ) | (1,930 | ) | -8.1 | % | ||
| Net Loss | (9,872 | ) | (4,760 | ) | 107.4 | % | ||
| Preferred stock dividends | 482 | 964 | -50.0 | % | ||||
| Net Loss available to common stockholders | $ | (10,354 | ) | $ | (5,724 | ) | 80.9 | % |
| Net Loss per common share-basic and diluted | ||||||||
| Basic | $ | (0.60 | ) | $ | (0.33 | ) | 79.5 | % |
| Diluted | $ | (0.60 | ) | $ | (0.33 | ) | 79.5 | % |
| Weighted average number of common shares outstanding | ||||||||
| Basic | 17,273 | 17,144 | 0.8 | % | ||||
| Diluted | 17,273 | 17,144 | 0.8 | % | ||||
| Statements of Financial Condition | June 30, 2026 | March 31, 2026 | December 31, 2025 | June 30, 2026 vs. March 31, 2026 | June 30, 2026 vs. December 31, 2025 | ||||||||
| ASSETS | (In Thousands, Unaudited) | ||||||||||||
| Cash and amounts due from depository institutions | $ | 14,573 | $ | 12,619 | $ | 13,794 | 15.5 | % | 5.6 | % | |||
| Interest-earning deposits | 182,314 | 281,118 | 262,790 | -35.1 | % | -30.6 | % | ||||||
| Total cash and cash equivalents | 196,887 | 293,737 | 276,584 | -33.0 | % | -28.8 | % | ||||||
| Interest-earning time deposits | 735 | 735 | 735 | - | - | ||||||||
| Debt securities available for sale | 148,428 | 134,013 | 126,395 | 10.8 | % | 17.4 | % | ||||||
| Equity investments | 3,851 | 9,079 | 9,172 | -57.6 | % | -58.0 | % | ||||||
| Loans held for sale | 10,777 | - | - | - | - | ||||||||
| Loans receivable, net of allowance for credit losses on loans | |||||||||||||
| of | 2,587,984 | 2,655,981 | 2,691,091 | -2.6 | % | -3.8 | % | ||||||
| Federal Home Loan Bank of New York ("FHLB") stock, at cost | 9,048 | 13,757 | 14,176 | -34.2 | % | -36.2 | % | ||||||
| Premises and equipment, net | 11,737 | 11,915 | 12,056 | -1.5 | % | -2.6 | % | ||||||
| Accrued interest receivable | 14,661 | 15,259 | 13,834 | -3.9 | % | 6.0 | % | ||||||
| Other real estate owned | 5,000 | 5,000 | 5,000 | - | - | ||||||||
| Deferred income taxes | 24,794 | 23,047 | 22,209 | 7.6 | % | 11.6 | % | ||||||
| Goodwill | - | 5,253 | 5,253 | - | - | ||||||||
| Operating lease right-of-use asset | 10,479 | 10,889 | 10,660 | -3.8 | % | -1.7 | % | ||||||
| Bank-owned life insurance ("BOLI") | 81,229 | 80,312 | 79,366 | 1.1 | % | 2.3 | % | ||||||
| Other assets | 12,516 | 10,120 | 12,935 | 23.7 | % | -3.2 | % | ||||||
| Total Assets | $ | 3,118,126 | $ | 3,269,097 | $ | 3,279,466 | -4.6 | % | -4.9 | % | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
| LIABILITIES | |||||||||||||
| Non-interest bearing deposits | $ | 514,648 | $ | 521,316 | $ | 531,140 | -1.3 | % | -3.1 | % | |||
| Interest bearing deposits | 2,121,375 | 2,151,113 | 2,142,433 | -1.4 | % | -1.0 | % | ||||||
| Total deposits | 2,636,023 | 2,672,429 | 2,673,573 | -1.4 | % | -1.4 | % | ||||||
| FHLB advances | 125,000 | 225,000 | 235,000 | -44.4 | % | -46.8 | % | ||||||
| Subordinated debentures | 43,335 | 43,272 | 43,210 | 0.1 | % | 0.3 | % | ||||||
| Operating lease liability | 10,953 | 11,365 | 11,140 | -3.6 | % | -1.7 | % | ||||||
| Other liabilities | 10,896 | 9,651 | 12,259 | 12.9 | % | -11.1 | % | ||||||
| Total Liabilities | 2,826,207 | 2,961,717 | 2,975,182 | -4.6 | % | -5.0 | % | ||||||
| STOCKHOLDERS' EQUITY | |||||||||||||
| Preferred stock: | - | - | - | - | - | ||||||||
| Additional paid-in capital preferred stock | 25,243 | 25,243 | 25,243 | - | - | ||||||||
| Common stock: no par value, 40,000 shares authorized | - | - | - | - | - | ||||||||
| Additional paid-in capital common stock | 204,451 | 203,876 | 203,429 | 0.3 | % | 0.5 | % | ||||||
| Retained earnings | 103,225 | 119,412 | 116,415 | -13.6 | % | -11.3 | % | ||||||
| Accumulated other comprehensive loss | (2,653 | ) | (2,804 | ) | (2,456 | ) | -5.4 | % | 8.0 | % | |||
| Treasury stock, at cost | (38,347 | ) | (38,347 | ) | (38,347 | ) | - | - | |||||
| Total Stockholders' Equity | 291,919 | 307,380 | 304,284 | -5.0 | % | -4.1 | % | ||||||
| Total Liabilities and Stockholders' Equity | $ | 3,118,126 | $ | 3,269,097 | $ | 3,279,466 | -4.6 | % | -4.9 | % | |||
| Outstanding common shares | 18,102 | 17,359 | 17,274 | ||||||||||
| Three Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | ||||||||||||||
| Average Balance | Interest Earned/Paid | Average Yield/Rate(3) | Average Balance | Interest Earned/Paid | Average Yield/Rate(3) | ||||||||||
| (Dollars in thousands) | |||||||||||||||
| Interest-earning assets: | |||||||||||||||
| Loans Receivable(4)(5) | $ | 2,660,757 | $ | 35,856 | 5.41 | % | $ | 2,933,851 | $ | 38,650 | 5.28 | % | |||
| Investment Securities | 152,347 | 2,073 | 5.44 | % | 133,900 | 1,822 | 5.44 | % | |||||||
| Other Interest-earning assets(6) | 278,413 | 2,532 | 3.65 | % | 239,245 | 2,709 | 4.54 | % | |||||||
| Total Interest-earning assets | 3,091,517 | 40,461 | 5.25 | % | 3,306,996 | 43,181 | 5.24 | % | |||||||
| Non-interest-earning assets | 139,410 | 113,206 | |||||||||||||
| Total assets | $ | 3,230,927 | $ | 3,420,202 | |||||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Interest-bearing demand accounts | $ | 529,612 | $ | 2,122 | 1.61 | % | $ | 529,120 | $ | 2,230 | 1.69 | % | |||
| Money market accounts | 449,469 | 3,291 | 2.94 | % | 418,014 | 3,354 | 3.22 | % | |||||||
| Savings accounts | 237,124 | 112 | 0.19 | % | 258,696 | 217 | 0.34 | % | |||||||
| Certificates of Deposit | 940,358 | 8,266 | 3.53 | % | 921,140 | 9,170 | 3.99 | % | |||||||
| Total interest-bearing deposits | 2,156,563 | 13,791 | 2.56 | % | 2,126,970 | 14,971 | 2.82 | % | |||||||
| Borrowed funds | 236,427 | 3,325 | 5.64 | % | 422,022 | 5,108 | 4.85 | % | |||||||
| Total interest-bearing liabilities | 2,392,990 | 17,116 | 2.87 | % | 2,548,992 | 20,079 | 3.16 | % | |||||||
| Non-interest-bearing liabilities | 529,508 | 557,177 | |||||||||||||
| Total liabilities | 2,922,498 | 3,106,169 | |||||||||||||
| Stockholders' equity | 308,429 | 314,033 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 3,230,927 | $ | 3,420,202 | |||||||||||
| Net interest income | $ | 23,345 | $ | 23,102 | |||||||||||
| Net interest rate spread(1) | 2.38 | % | 2.08 | % | |||||||||||
| Net interest margin(2) | 3.03 | % | 2.80 | % | |||||||||||
| (1)Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. | |||||||||||||||
| (2)Net interest margin represents net interest income divided by average total interest-earning assets. | |||||||||||||||
| (3)Annualized. | |||||||||||||||
| (4)Excludes allowance for credit losses. | |||||||||||||||
| (5)Includes non-accrual loans. | |||||||||||||||
| (6)Includes Federal Home Loan Bank of New York Stock. | |||||||||||||||
| Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | ||||||||||||||
| Average Balance | Interest Earned/Paid | Average Yield/Rate(3) | Average Balance | Interest Earned/Paid | Average Yield/Rate(3) | ||||||||||
| (Dollars in thousands) | |||||||||||||||
| Interest-earning assets: | |||||||||||||||
| Loans Receivable(4)(5) | $ | 2,684,502 | $ | 71,734 | 5.39 | % | $ | 2,964,023 | $ | 77,577 | 5.28 | % | |||
| Investment Securities | 144,789 | 3,902 | 5.43 | % | 125,598 | 3,351 | 5.38 | % | |||||||
| Other interest-earning assets(6) | 288,485 | 5,227 | 3.65 | % | 285,271 | 6,445 | 4.56 | % | |||||||
| Total Interest-earning assets | 3,117,776 | 80,863 | 5.23 | % | 3,374,892 | 87,373 | 5.22 | % | |||||||
| Non-interest-earning assets | 137,717 | 119,558 | |||||||||||||
| Total assets | $ | 3,255,493 | $ | 3,494,450 | |||||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Interest-bearing demand accounts | $ | 526,523 | $ | 4,165 | 1.59 | % | $ | 544,756 | $ | 4,598 | 1.70 | % | |||
| Money market accounts | 440,938 | 6,418 | 2.94 | % | 406,214 | 6,404 | 3.18 | % | |||||||
| Savings accounts | 239,777 | 248 | 0.21 | % | 255,479 | 368 | 0.29 | % | |||||||
| Certificates of Deposit | 952,259 | 16,858 | 3.57 | % | 963,171 | 19,932 | 4.17 | % | |||||||
| Total interest-bearing deposits | 2,159,497 | 27,689 | 2.59 | % | 2,169,620 | 31,302 | 2.91 | % | |||||||
| Borrowed funds | 253,679 | 6,992 | 5.56 | % | 455,036 | 10,964 | 4.86 | % | |||||||
| Total interest-bearing liabilities | 2,413,176 | 34,681 | 2.90 | % | 2,624,656 | 42,266 | 3.25 | % | |||||||
| Non-interest-bearing liabilities | 535,232 | 550,454 | |||||||||||||
| Total liabilities | 2,948,408 | 3,175,110 | |||||||||||||
| Stockholders' equity | 307,085 | 319,340 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 3,255,493 | $ | 3,494,450 | |||||||||||
| Net interest income | $ | 46,182 | $ | 45,107 | |||||||||||
| Net interest rate spread(1) | 2.33 | % | 1.97 | % | |||||||||||
| Net interest margin(2) | 2.99 | % | 2.70 | % | |||||||||||
| (1)Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. | |||||||||||||||
| (2)Net interest margin represents net interest income divided by average total interest-earning assets. | |||||||||||||||
| (3)Annualized. | |||||||||||||||
| (4)Excludes allowance for credit losses. | |||||||||||||||
| (5)Includes non-accrual loans. | |||||||||||||||
| (6)Includes Federal Home Loan Bank of New York Stock. | |||||||||||||||
| Financial Condition data by quarter | |||||||||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |||||||||||
| (In thousands, except book values) | |||||||||||||||
| Total assets | $ | 3,118,126 | $ | 3,269,097 | $ | 3,279,466 | $ | 3,353,065 | $ | 3,380,461 | |||||
| Cash and cash equivalents | 196,887 | 293,737 | 276,584 | 249,614 | 206,852 | ||||||||||
| Securities | 152,279 | 143,092 | 135,567 | 125,292 | 140,025 | ||||||||||
| Loans receivable, net | 2,587,984 | 2,655,981 | 2,691,091 | 2,788,932 | 2,860,453 | ||||||||||
| Deposits | 2,636,023 | 2,672,429 | 2,673,573 | 2,687,387 | 2,661,534 | ||||||||||
| Borrowings | 168,335 | 268,272 | 278,210 | 323,922 | 378,722 | ||||||||||
| Stockholders’ equity | 291,919 | 307,380 | 304,284 | 318,453 | 315,735 | ||||||||||
| Book value per common share(1) | $ | 14.73 | $ | 16.25 | $ | 16.15 | $ | 17.02 | $ | 16.89 | |||||
| Tangible book value per common share(2) | $ | 14.73 | $ | 15.95 | $ | 15.85 | $ | 16.71 | $ | 16.59 | |||||
| Operating data by quarter | |||||||||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |||||||||||
| (In thousands, except for per share amounts) | |||||||||||||||
| Net interest income | $ | 23,345 | $ | 22,837 | $ | 24,223 | $ | 23,711 | $ | 23,102 | |||||
| Provision for credit losses | 18,987 | 2,788 | 12,195 | 4,080 | 4,891 | ||||||||||
| Non-interest (loss) income | (470 | ) | 2,101 | 1,943 | 2,745 | 2,076 | |||||||||
| Non-interest expense | 22,132 | 15,551 | 31,385 | 16,570 | 15,268 | ||||||||||
| Income tax expense (benefit) | (3,468 | ) | 1,695 | (5,385 | ) | 1,544 | 1,455 | ||||||||
| Net income (loss) | $ | (14,776 | ) | $ | 4,904 | $ | (12,029 | ) | $ | 4,262 | $ | 3,564 | |||
| Net income (loss) per diluted share | $ | (0.85 | ) | $ | 0.26 | $ | (0.73 | ) | $ | 0.22 | $ | 0.18 | |||
| Common Dividends declared per share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 | $ | 0.16 | |||||
| Financial Ratios(3) | |||||||||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |||||||||||
| Return on average assets | (1.83 | %) | 0.61 | % | (1.44 | %) | 0.50 | % | 0.42 | % | |||||
| Return on average stockholders' equity | (19.22 | %) | 6.50 | % | (14.99 | %) | 5.35 | % | 4.55 | % | |||||
| Net interest margin | 3.03 | % | 2.95 | % | 3.03 | % | 2.88 | % | 2.80 | % | |||||
| Stockholders' equity to total assets | 9.36 | % | 9.40 | % | 9.28 | % | 9.50 | % | 9.34 | % | |||||
| Efficiency Ratio(4) | 96.75 | % | 62.36 | % | 119.95 | % | 62.63 | % | 60.64 | % | |||||
| Asset Quality Ratios | |||||||||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |||||||||||
| (In thousands, except for ratio %) | |||||||||||||||
| Non-Accrual Loans(5) | $ | 72,011 | $ | 59,805 | $ | 63,255 | $ | 93,517 | $ | 101,764 | |||||
| Non-Accrual Loans as a % of Total Loans(5) | 2.73 | % | 2.22 | % | 2.32 | % | 3.31 | % | 3.50 | % | |||||
| ACL as % of Non-Accrual Loans | 62.5 | % | 54.5 | % | 53.3 | % | 40.4 | % | 49.8 | % | |||||
| Individually Analyzed Loans | $ | 124,832 | $ | 160,600 | $ | 162,226 | $ | 129,358 | $ | 153,428 | |||||
| Criticized Loans | 206,975 | 208,339 | 170,875 | 220,768 | 229,929 | ||||||||||
| Classified Loans(6) | 160,454 | 194,662 | 188,876 | 228,255 | 266,847 | ||||||||||
| Past Due loans(6) | 122,759 | 107,947 | 99,132 | 174,006 | 110,971 | ||||||||||
| (1)Calculated by dividing stockholders' equity, less preferred equity, by shares outstanding. | |||||||||||||||
| (2)Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ | |||||||||||||||
| common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.” | |||||||||||||||
| (3)Ratios are presented on an annualized basis, where appropriate. | |||||||||||||||
| (4)The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income | |||||||||||||||
| and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.” | |||||||||||||||
| (5)Non-Accrual loans include Held for Sale loan. | |||||||||||||||
| (6)Classified and past due loans excludes Held for Sale loan. | |||||||||||||||
| Recorded Investment in Loans Receivable by quarter | |||||||||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |||||||||||
| (In thousands) | |||||||||||||||
| Residential one-to-four family | $ | 218,750 | $ | 223,708 | $ | 226,708 | $ | 227,140 | $ | 230,917 | |||||
| Commercial and multi-family | 2,009,865 | 2,021,827 | 2,040,768 | 2,080,088 | 2,088,117 | ||||||||||
| Cannabis related | 69,190 | 68,876 | 69,293 | 69,102 | 103,007 | ||||||||||
| Construction | 33,298 | 68,362 | 68,521 | 105,980 | 111,370 | ||||||||||
| Commercial business | 157,523 | 160,088 | 168,459 | 192,762 | 224,800 | ||||||||||
| Business Express | 68,949 | 71,215 | 74,862 | 78,253 | 81,521 | ||||||||||
| Home equity | 73,935 | 72,716 | 74,332 | 73,566 | 71,587 | ||||||||||
| Consumer | 3,401 | 3,584 | 3,580 | 2,042 | 2,075 | ||||||||||
| $ | 2,634,911 | $ | 2,690,376 | $ | 2,726,523 | $ | 2,828,933 | $ | 2,913,394 | ||||||
| Less: | |||||||||||||||
| Deferred loan fees, net | (1,947 | ) | (1,817 | ) | (1,741 | ) | (2,198 | ) | (2,283 | ) | |||||
| Allowance for credit losses on loans | (44,980 | ) | (32,578 | ) | (33,691 | ) | (37,803 | ) | (50,658 | ) | |||||
| Total loans, net | $ | 2,587,984 | $ | 2,655,981 | $ | 2,691,091 | $ | 2,788,932 | $ | 2,860,453 | |||||
| Non-Accruing Loans in Portfolio by quarter | |||||||||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |||||||||||
| (In thousands) | |||||||||||||||
| Residential one-to-four family | $ | 1,515 | $ | 1,576 | $ | 1,554 | $ | 1,410 | $ | 1,436 | |||||
| Commercial and multi-family | 54,478 | 52,297 | 52,159 | 70,546 | 57,969 | ||||||||||
| Cannabis related | - | - | - | - | 33,512 | ||||||||||
| Construction(1) | 13,364 | 3,173 | 4,897 | 2,310 | 586 | ||||||||||
| Commercial business | 2,397 | 2,418 | 3,725 | 17,442 | 6,392 | ||||||||||
| Business Express | - | - | 626 | 1,335 | 1,377 | ||||||||||
| Home equity | 257 | 341 | 294 | 474 | 492 | ||||||||||
| Consumer | - | - | - | - | - | ||||||||||
| Total: | $ | 72,011 | $ | 59,805 | $ | 63,255 | $ | 93,517 | $ | 101,764 | |||||
| (1)Includes Held for Sale loan | |||||||||||||||
| Distribution of Deposits by quarter | |||||||||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |||||||||||
| (In thousands) | |||||||||||||||
| Demand: | |||||||||||||||
| Non-Interest Bearing | $ | 514,648 | $ | 521,317 | $ | 531,140 | $ | 536,908 | $ | 539,093 | |||||
| Interest Bearing | 517,627 | 511,465 | 501,172 | 477,427 | 503,336 | ||||||||||
| Money Market | 446,918 | 448,397 | 426,138 | 422,424 | 428,397 | ||||||||||
| Sub-total: | $ | 1,479,193 | $ | 1,481,179 | $ | 1,458,450 | $ | 1,436,759 | $ | 1,470,826 | |||||
| Savings and Club | 230,532 | 240,048 | 243,670 | 254,554 | 258,585 | ||||||||||
| Certificates of Deposit | 926,298 | 951,202 | 971,453 | 996,074 | 932,123 | ||||||||||
| Total Deposits: | $ | 2,636,023 | $ | 2,672,429 | $ | 2,673,573 | $ | 2,687,387 | $ | 2,661,534 | |||||
| Reconciliation of GAAP to Non-GAAP Financial Measures by quarter | |||||||||||||||
| Tangible Book Value per Share | |||||||||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |||||||||||
| (In thousands, except per share amounts) | |||||||||||||||
| Total Stockholders' Equity | $ | 291,919 | $ | 307,380 | $ | 304,284 | $ | 318,453 | $ | 315,735 | |||||
| Less: goodwill | - | 5,253 | 5,253 | 5,253 | 5,253 | ||||||||||
| Less: preferred stock | 25,243 | 25,243 | 25,243 | 25,243 | 25,243 | ||||||||||
| Total tangible common stockholders' equity | 266,676 | 276,884 | 273,788 | 287,957 | 285,239 | ||||||||||
| Common shares outstanding | 18,102 | 17,359 | 17,274 | 17,228 | 17,194 | ||||||||||
| Book value per common share | $ | 14.73 | $ | 16.25 | $ | 16.15 | $ | 17.02 | $ | 16.89 | |||||
| Tangible book value per common share | $ | 14.73 | $ | 15.95 | $ | 15.85 | $ | 16.71 | $ | 16.59 | |||||
| Efficiency Ratios | |||||||||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |||||||||||
| (In thousands, except for ratio %) | |||||||||||||||
| Net interest income | $ | 23,345 | $ | 22,837 | $ | 24,223 | $ | 23,711 | $ | 23,102 | |||||
| Non-interest (loss)income | (470 | ) | 2,101 | 1,943 | 2,745 | 2,076 | |||||||||
| Total income | 22,875 | 24,938 | 26,166 | 26,456 | 25,178 | ||||||||||
| Non-interest expense | 22,132 | 15,551 | 31,385 | 16,570 | 15,268 | ||||||||||
| Efficiency Ratio | 96.75 | % | 62.36 | % | 119.95 | % | 62.63 | % | 60.64 | % | |||||
