Forward-Looking Statements



This report on Form 10-Q contains "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995, or the PSLRA. Such
forward-looking statements, in addition to historical information, involve risk
and uncertainties, and are based on the beliefs, assumptions and expectations of
our management team. Words such as "expects," "believes," "should," "plans,"
"anticipates," "will," "potential," "could," "intend," "may," "outlook,"
"predict," "project," "would," "estimated," "assumes," "likely," and variation
of such similar expressions are intended to identify such forward-looking
statements. Forward-looking statements speak only as of the date they are made.
Because forward-looking statements are subject to assumptions and uncertainties,
actual results or future events could differ, possibly materially, from those
that we anticipated in our forward-looking statements and future results could
differ materially from historical performance.

The most significant factor that could cause future results to differ materially
from those anticipated by our forward-looking statements include the ongoing
impact of higher inflation levels, higher interest rates and general economic
and recessionary concerns, all of which could impact economic growth and could
cause a reduction in financial transactions and business activities, including
decreased deposits and reduced loan originations, our ability to manage
liquidity in a rapidly changing and unpredictable market, supply chain
disruptions, labor shortages and additional interest rate increases by the
Federal Reserve. 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:

?unfavorable economic conditions in the United States generally and particularly in our primary market area;

?the effects of declines in housing markets and 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 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;



?inflation;

?demands for our loan products;

?demand for financial services;

?competition;

?changes in the securities or secondary mortgage markets;

?changes in management's business strategies;

?our ability to enter new markets successfully;

?our ability to successfully integrate acquired businesses;

?changes in consumer spending;

?our ability to 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, in Part II, Item 1A of our quarterly reports on Form
10-Q, and our other periodic reports that we file with the SEC.

You should not place undue reliance on these forward-looking statements, which
reflect our expectations only as of the date of this Form 10-Q. We do not assume
any obligation to revise forward-looking statements except as may be required by
law.

Overview

BCB Bancorp, Inc. is a New Jersey corporation, and is the holding company parent
of BCB Community Bank, or the Bank. The Company has not engaged in any
significant business activity other than owning all of the outstanding common
stock of BCB Community Bank. Our executive office is located at 104-110 Avenue
C, Bayonne, New Jersey 07002. At March 31, 2023, we had $3.763 billion in
consolidated assets, $2.867 billion in deposits and $297.6 million in
consolidated stockholders' equity.

BCB Community Bank opened for business on November 1, 2000 as Bayonne Community
Bank, a New Jersey chartered commercial bank. The Bank changed its name from
Bayonne Community Bank to BCB Community Bank in April 2007. At March 31, 2023,
the Bank operated through 24 branches in Bayonne, Edison, Jersey City, Hoboken,
Fairfield, Holmdel, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany,
Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New
Jersey, as well as three branches in Hicksville and Staten Island, NY, and
through executive offices located at 104-110 Avenue C and an administrative
office located at 591-595 Avenue C, Bayonne, New Jersey 07002. The Bank's
deposit accounts are insured by the FDIC, and the Bank is a member of the
Federal Home Loan Bank System.

We are a community-oriented financial institution. Our business is to offer
FDIC-insured deposit products and to invest funds held in deposit accounts at
the Bank, together with funds generated from operations, in loans and investment
securities. We offer our customers:

?loans, including commercial and multi-family real estate loans, one- to four-family mortgage loans, home equity loans, construction loans, consumer loans and commercial business loans. In recent years the primary growth in our loan portfolio has been in loans secured by commercial real estate and multi-family properties;



?FDIC-insured deposit products, including savings and club accounts, interest
and non-interest bearing demand accounts, money market accounts, certificates of
deposit and individual retirement accounts; and

?retail and commercial banking services including wire transfers, money orders, safe deposit boxes, a night depository, debit cards, online banking, mobile banking, gift cards, fraud detection (positive pay), and automated teller services.


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Critical Accounting Estimates



Estimates and assumptions are necessary in the application of certain accounting
policies and can be susceptible to significant change. Critical accounting
estimates are defined as those that involve a significant level of estimation
uncertainty and have had, or could have, a material impact on the Company's
financial conditions or results of operation. At March 31, 2023, the Company
considers the allowance for credit losses to be its critical accounting
estimate.

See further discussion of this critical accounting estimate in our Annual Report on Form 10-K for the year ended December 31, 2022.

Financial Condition



Total assets increased by $216.9 million, or 6.1 percent, to $3.763 billion at
March 31, 2023, from $3.546 billion at December 31, 2022. The increase in total
assets was mainly related to increases in total loans and in cash and cash
equivalents.

Total cash and cash equivalents increased by $31.7 million, or 13.8 percent, to
$261.1 million at March 31, 2023, from $229.4 million at December 31, 2022. The
increase was primarily due to an increase in Federal Home Loan Bank ("FHLB")
borrowings and in deposits.

Loans receivable, net, increased by $186.5 million, or 6.1 percent, to $3.232
billion at March 31, 2023, from $3.045 billion at December 31, 2022. Total loan
increases for the first three months of 2023 included increases of $121.7
million in commercial real estate and multi-family loans, $45.6 million in
commercial business loans, $17.6 million in construction loans, and $2.1 million
in home equity and consumer loans, partly offset by a decrease of $3.4 million
in residential one-to-four family loans. Due to the adoption of the CECL
methodology (discussed in the notes to the consolidated financial statements
above), the allowance for credit losses decreased $3.5 million to $28.9 million,
or 571.0 percent of non-accruing loans and 0.89 percent of gross loans, at March
31, 2023, as compared to an allowance for credit losses of $32.4 million, or
633.6 percent of non-accruing loans and 1.05 percent of gross loans, at December
31, 2022.

Total investment securities decreased by $8.0 million, or 7.3 percent, to $101.4 million at March 31, 2023, from $109.4 million at December 31, 2022, representing unrealized losses, calls and maturities, and repayments.

Deposit liabilities increased by $55.6 million, or 2.0 percent, to $2.867 billion at March 31, 2023, from $2.812 billion at December 31, 2022. The increase in deposits was primarily driven by an increase of $43.3 million in non-brokered deposits during the first quarter of 2023.



Debt obligations increased by $150.2 million to $570.0 million at March 31, 2023
from $419.8 million at December 31, 2022. The weighted average interest rate of
FHLB advances was 4.52 percent at March 31, 2023 and 4.07 percent at December
31, 2022. The weighted average maturity of FHLB advances as of March 31, 2023
was 0.78 years. The fixed interest rate of our subordinated debt balances was
5.62 percent at March 31, 2023 and December 31, 2022.

Stockholders' equity increased by $6.4 million, or 2.2 percent, to $297.6
million at March 31, 2023, from $291.3 million at December 31, 2022. The
increase was primarily attributable to the increase in retained earnings of $8.0
million, or 7.0 percent, to $123.1 million at March 31, 2023 from $115.1 million
at December 31, 2022, partially offset by the cost of repurchasing 151,753
shares during the first quarter.


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Net Interest Income Analysis



Net interest income represents the difference between income earned on our
interest-earning assets and the expense incurred on our interest-bearing
liabilities, and is analyzed and monitored by the Company on a regular basis.
The following tables set forth average balance sheets, yields, and costs. The
yields include the effect of deferred fees, discounts, and premiums that are
amortized or accreted to interest income or expense. No tax equivalent
adjustments have been made as the effects would not be significant.

                                                        Three Months Ended March 31,
                                               2023                                       2022
                                                           Average                                    Average
                               Average       Interest     Yield/Rate      Average       Interest     Yield/Rate
                               Balance      Earned/Paid      (3)          Balance      Earned/Paid      (3)
                                                           (Dollars in

thousands)


Interest-earning assets:
Loans receivable (4) (5)    $ 3,165,678   $      38,889        4.91%   $ 2,343,845   $      26,321        4.49%
Investment securities (6)       108,869           1,306        4.80%       108,960           1,107        4.06%
Interest earnings assets        208,842           2,157        4.13%       447,080             296        0.26%
Total interest-earning
assets                        3,483,389          42,352        4.86%     2,899,885          27,724        3.82%
Non-interest-earning
assets                          116,770                                    102,118
Total assets                $ 3,600,159                                $ 3,002,003
Interest-bearing
liabilities:
Interest-bearing demand
accounts                    $   713,788   $       1,789        1.00%   $   706,067   $         398        0.23%
Money market accounts           314,427           1,365        1.74%       345,564             360        0.42%
Savings accounts                322,760             118        0.15%       336,575             108        0.13%
Certificates of Deposit         848,447           6,453        3.04%       611,813             980        0.64%
Total interest-bearing
deposits                      2,199,422           9,725        1.77%     2,000,019           1,846        0.37%
Borrowed funds                  461,415           5,156        4.47%       109,105             806        2.95%
Total interest-bearing
liabilities                   2,660,837          14,881        2.24%     2,109,124           2,652        0.50%

Non-interest-bearing


liabilities                     645,883

621,574


Total liabilities             3,306,720

2,730,698


Stockholders' equity       293,439

271,305


Total liabilities and
stockholders' equity   $ 3,600,159                                $ 3,002,003
Net interest income                       $      27,471                              $      25,072
Net interest rate
spread(1)                                                      2.62%                                      3.32%
Net interest margin(2)                                         3.15%                                      3.46%

(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 which are immaterial to the yield.

(6)Includes Federal Home Loan Bank of New York Stock




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Results of Operations comparison for the Three Months Ended March 31, 2023 and 2022

Net income was $8.1 million for the first quarter ended March 31, 2023 and $10.0 million for the first quarter ended March 31, 2022. The decline was primarily driven by higher loan loss provisioning and unrealized losses on equity investments for the first quarter of 2023 as compared with the first quarter of 2022.



Net interest income increased by $2.4 million, or 9.6 percent, to $27.5 million
for the first quarter of 2023, from $25.1 million for the first quarter of 2022.
The increase in net interest income resulted from higher interest income which
was partially offset by higher interest expense.

Interest income increased by $14.6 million, or 52.8 percent, to $42.4 million
for the first quarter of 2023 from $27.7 million for the first quarter of 2022.
The average balance of interest-earning assets increased $583.5 million, or 20.1
percent, to $3.483 billion for the first quarter of 2023 from $2.900 billion for
the first quarter of 2022, while the average yield increased 104 basis points to
4.86 percent for the first quarter of 2023 from 3.82 percent for the first
quarter of 2022. Compared to the first quarter of 2023, the interest income on
loans for the first quarter of 2022 also included $147,000 of amortization of
purchase credit fair value adjustments related to a prior acquisition, which
added approximately three basis points to the average yield on interest-earning
assets.

Interest expense increased by $12.2 million to $14.9 million for the first
quarter of 2023 from $2.7 million for the first quarter of 2022. The increase
resulted primarily from an increase in the average rate on interest-bearing
liabilities of 174 basis points to 2.24 percent for the first quarter of 2023
from 0.50 percent for the first quarter of 2022, while the average balance of
interest-bearing liabilities also increased by $551.7 million to $2.661 billion
for the first quarter of 2023 from $2.109 billion for the first quarter of 2022.
The increase in the average cost of funds resulted primarily from the
persistently high interest rate environment.

The net interest margin was 3.15 percent for the first quarter of 2023 compared
to 3.46 percent for the first quarter of 2022. The decrease in the net interest
margin compared to the first quarter of 2022 was the result of the increase in
the cost of interest-bearing liabilities partially offset by the increase in the
yield on interest-earning assets. In a persistently high interest rate
environment, management has been proactive in managing both the yield on earning
assets and the cost of funds to protect net interest margin and continue to
support the growth of net interest income.

During the first quarter of 2023, the Company experienced $48,000 in net
recoveries of previously charged off loans compared to $564,000 in the first
quarter of 2022. The Bank had non-accrual loans totaling $5.06 million, or 0.16
percent of gross loans, at March 31, 2023 as compared to $9.2 million, or 0.38
percent of gross loans, at March 31, 2022. The allowance for credit losses on
loans was $28.9 million, or 0.89 percent of gross loans at March 31, 2023, and
$34.0 million, or 1.40 percent of gross loans at March 31, 2022. The provision
for credit losses was $622,000 for the first quarter of 2023 compared to a
credit for loan losses of $2.6 million for the first quarter of 2022. Management
believes that the allowance for credit losses on loans was adequate at March 31,
2023 and March 31, 2022.

Non-interest income decreased by $1.1 million to a loss of $1.7 million for the
first quarter of 2023 from a loss of $600,000 for first quarter of 2022. The
decrease in total non-interest income was mainly related to an increase in
unrealized losses on equity securities from $2.7 million to $3.2 million and a
decrease in BOLI income of $334,000. The unrealized losses on equity securities
are based on market conditions.

Non-interest expense increased by $895,000, or 6.9 percent, to $13.9 million for
the first quarter of 2023 from $13.0 million for the first quarter of 2022. The
increase in operating expenses for the first quarter of 2023 was primarily
driven by the higher salaries and employee benefits and increased spending for
advertising and promotions compared to the first quarter of 2022. The increase
in salaries related to normal compensation increases, higher commission expenses
from strong loan production, and the increased cost of newly hired staff. The
higher advertising and promotional spending is intended to continue the strong
growth in our business. The number of full-time equivalent employees for the
first quarter of 2023 was 298, as compared to 303 for the same period in 2022.

The income tax provision decreased by $911,000 or 22.0 percent, to $3.2 million
for the first quarter of 2023 from $4.1 million for the first quarter of 2022.
The consolidated effective tax rate was 28.5 percent for the first quarter of
2023 compared to 29.4 percent for the first quarter of 2022.

Liquidity and Capital Resources

Liquidity



The overall objective of our liquidity management practices is to ensure the
availability of sufficient funds to meet financial commitments and to take
advantage of lending and investment opportunities. The Company manages liquidity
in order to meet deposit withdrawals on demand or at contractual maturity, to
repay borrowings and other obligations as they mature, and to fund loan and
investment portfolio opportunities as they arise.

The Company's primary sources of funds to satisfy its objectives are net growth
in deposits (primarily retail), principal and interest payments on loans and
investment securities, proceeds from the sale of originated loans and FHLB and
other borrowings. The scheduled amortization of loans is a predictable source of
funds. Deposit flows and mortgage prepayments are greatly influenced by general
interest rates, economic conditions and competition. The Company has other
sources of liquidity if a need for additional funds arises, including unsecured
overnight lines of credit and other collateralized borrowings from the FHLB and
certain correspondent banks. The Federal Reserve Board also has announced a Bank
Term Funding Program available to eligible depository institutions secured by
U.S. treasuries, agency debt and mortgage-backed securities, and other
qualifying assets as collateral at par, to mitigate the risk of potential losses
on the sale of such instruments.

At March 31, 2023 and December 31, 2022, the Company had $10.0 million and $60.0
million in overnight borrowings outstanding with the FHLB. The Company utilizes
overnight borrowings from time to time to fund short-term liquidity needs. The
Company had total FHLB borrowings of $532.4 million at March 31, 2023 and
$382.3 million at December 31, 2022. The average rate of FHLB advances was 4.52
percent at March 31, 2023 and 4.07 percent at December 31, 2022.

The Company had the ability at March 31, 2023 to obtain additional funding from
the FHLB of up to $385.0 million, utilizing unencumbered loan collateral. The
Company expects to have sufficient funds available to meet current loan
commitments in the normal course of business through typical sources of
liquidity. Time deposits scheduled to mature in one year or less totaled
$858.0 million at March 31, 2023. Based upon historical experience, management
estimates that a significant portion of such deposits will remain with the
Company.

The Company was well positioned with adequate levels of cash and liquid assets as of March 31, 2023, as well as wholesale borrowing capacity of over $800 million.

Subordinated Debentures



The Company has subordinated debentures outstanding, whose aggregate principal
totaled $33.4 million at March 31, 2023, which includes $58,000 remaining
unamortized debt issuance costs. The debt issuance costs are being amortized
over the expected life of the issue. The subordinated debentures have a ten-year
term and bear interest at a fixed annual rate of 5.625% for the first five years
of the term. Beginning August 1, 2023, the interest rate will adjust to a
floating rate based on the LIBOR plus 2.72% until redemption or maturity. The
Notes are scheduled to mature on August 1, 2028.

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The Company also has $4.1 million of mandatory redeemable Trust Preferred
securities. The interest rate on these floating rate junior subordinated
debentures adjusts quarterly based on the three-month LIBOR plus 2.650%. The
rate paid as of March 31, 2023 and 2022 was 7.557% and 7.388%, respectively. The
trust preferred debenture became callable, at the Company's option, on June 17,
2009, and quarterly thereafter.

As it is anticipated that LIBOR will not be supported in its current form after
June 30, 2023, the Company is reviewing the agreements for the above debentures
to determine alternative reference rates and does not anticipate there will be a
significant financial statement impact.

Capital Resources



The Bank is subject to various regulatory capital requirements administered by
the federal banking agencies. Failure to meet the minimum capital requirements
can initiate certain mandatory and possibly additional discretionary actions by
regulators that, if undertaken, could have a direct material effect on the
Company's consolidated financial statements. Under capital adequacy guidelines
and the regulatory framework for prompt corrective action, the Bank must meet
specific capital guidelines that involve quantitative measures of the Bank's
assets, liabilities and certain off-balance sheet items as calculated under
regulatory accounting practices. The Bank's capital amounts and classification
are also subject to qualitative judgments by the regulators about components,
risk-weightings and other factors.

On September 17, 2019, the FDIC passed a final rule providing qualifying
community banking organizations the ability to opt-in to a new community bank
leverage ratio (tier 1 capital to average consolidated assets) ("CBLR")
framework, with a minimum requirement of 9% for institutions under $10 billion
in assets. Such institutions meeting that requirement may elect to utilize the
CBLR in lieu of the general applicable risk-based capital requirements under
Basel III. Such institutions that meet the CBLR and certain other qualifying
criteria will automatically be deemed to be well-capitalized. The Bank decided
to opt-in to the new CBLR, effective for the quarter ended March 31, 2020.

At March 31, 2023 and December 31, 2022, BCB Community Bank exceeded all of its
regulatory capital requirements to which it was subject. The following table
sets forth the regulatory capital ratios for BCB Community Bank as well as
regulatory capital requirements for the periods presented.

                                                                               For Well
                                                       For Capital         Capitalized Under
                                                         Adequacy          Prompt Corrective
                                      Actual             Purposes               Action
                                                     Dollars in Thousands
As of March 31, 2023:
Bank
Community Bank Leverage Ratio    $ 333,643  9.26 %   $ 288,107 8.00 %     324,121  9.00 %

As of December 31, 2022:
Bank
Community Bank Leverage Ratio    $ 327,806  9.86 %   $ 265,557 8.00 %   $ 298,752  9.00 %



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