Q3 2026 BCB Bancorp Inc Earnings Call

October 29, 2026

Operator: Hello everyone. Thank you for joining us and welcome to the BCB Bancorp Incorporated's 2026 third quarter earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Thomas O'Brien, President and Chief Executive Officer. Thomas, please go ahead.

Operator: Hello everyone. Thank you for joining us and welcome to the BCB Bancorp Incorporated's 2026 Q3 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Thomas O'Brien, President and Chief Executive Officer. Thomas, please go ahead.

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Thomas O'Brien, President and Chief Executive Officer.

Speaker #1: Thomas, please go ahead.

Thomas O'Brien: Thank you, and good morning all. Appreciate you joining the third quarter earnings call for the company. Obviously, before I begin, I encourage you to read the forward-looking statement as contained in our press release. I guess I can begin by stating the obvious. Never quite reported a quarter like this in my career. It was momentous for the company in many ways. But I think it is fair to say we successfully accomplished everything that was set out on my 1 June call when I joined the bank, and actually more than that. I also believe that the results of the quarter pretty closely follow the guidance we provided and all of the recent filings and announcements around the capital issuance and loan sales. For this call, I do not see much value in discussing these telephone book numbers for net income.

Thomas O'Brien: Thank you, and good morning all. Appreciate you joining the Q3 earnings call for the company. Obviously, before I begin, I encourage you to read the forward-looking statement as contained in our press release. I guess I can begin by stating the obvious. Never quite reported a quarter like this in my career. It was momentous for the company in many ways. But I think it is fair to say we successfully accomplished everything that was set out on my 1 June call when I joined the bank, and actually more than that. I also believe that the results of the quarter pretty closely follow the guidance we provided and all of the recent filings and announcements around the capital issuance and loan sales. For this call, I do not see much value in discussing these telephone book numbers for net income.

Speaker #2: Thank you, and good morning all. Appreciate you joining the Q3 earnings call for the company. Obviously, before I begin, I encourage you to read the forward-looking statement as contained in our press release.

Speaker #2: So I guess I can begin by stating the obvious. Never quite reported a quarter like this in my career. It was momentous for the company, in many ways.

Speaker #2: But I think it's fair to say we successfully accomplished everything that was set out on my June 1 call when I joined the bank.

Speaker #2: And actually, more than that. I also believe that the results of the quarter pretty closely follow the guidance we provided in all of the recent filings and announcements around the capital issuance and loan sales.

Speaker #2: For this call, I don't see much value in discussing these telephone book numbers for net income. To the extent you want to, it's certainly jawad will be able to give you as much color as you want on that.

Thomas O'Brien: To the extent you want to, certainly Jawad will be able to give you as much color as you want on that. But honestly, the numbers are so big as to just appear, I am not sure I can even count that high. But as I said, I think the numbers, while admittedly huge, hopefully are self-explanatory given our previous disclosures on the strategic plan, capital, and asset quality. I thought I would just confine my quick remarks here on the outcomes and the expectations for the period ahead. I think it is probably worthwhile to focus some initial attention on our margins. Came in at 303, slightly higher than the estimated range of 290 to 300 that we had previewed. And this was in spite of the reversal of several interest receivable accruals approximating around $1 million. Deposit cost trends at lower, further supporting the NIM.

Speaker #2: But honestly, the numbers are so big as to disappear. I'm not sure I can even count that high. But as I said, I think the numbers, while admittedly huge, hopefully are self-explanatory given our previous disclosures on the strategic plan, capital, and asset quality.

Speaker #2: So I thought I'd just confine my quick remarks here on the outcomes and the expectations for the period ahead. I think it's probably worthwhile to focus some initial attention on our margin.

Speaker #2: It came in at 303, slightly higher than the estimated range of 290 to 3 that we had previewed. And this was in spite of the reversal of several interest receivable accruals approximating around a million dollars.

Speaker #2: Deposit cost trended lower, further supporting the NIM. Not surprisingly, asset quality improved along with the reserve coverage ratios. The sale of mostly criticized and classified loans aggregating over 200 million dollars along with the write-down to fair market value of another 100 million have gone a long way to cleaning up the loan quality problems that have dogged BCB in the recent past.

Thomas O'Brien: Not surprisingly, asset quality improved along with the reserve coverage ratios. The sale of mostly criticized and classified loans aggregating over $200 million, along with the write-down to fair market value of another $100 million, have gone a long way to cleaning up the loan quality problems that have dogged BCB in the recent past. We begin the Q4 with a $70 million ACL, over 3% of loans, and a low $22 million in NPLs. We continue to forecast the sale of our remaining cannabis portfolio of loans and deposits in the Q4. All of the loans were marked to market at 30 September. During the Q3 and in anticipation of the capital raise, our team went through the loan book to identify any needed risk rating changes to more properly align our enhanced process with potential future problems.

Speaker #2: We begin the fourth quarter with a 70 million dollar ACL over 3% of loans and a low 20 million in NPLs. We continue to forecast the sale of our remaining cannabis portfolio of loans and deposits in the fourth quarter; all of the loans were marked to market at September 30th.

Speaker #2: During the third quarter, and in anticipation of the capital raise, our team went through the loan book to identify any needed risk rating changes to more properly align our enhanced process with potential future problems.

Thomas O'Brien: In so doing, we identified another $77 million of previously pass-rated loans that were subsequently downgraded to either special mention or substandard. We believe that this discipline will continue to focus our attention and our disclosures on the residual credit risk. We believe that the loan-by-loan process that we followed has properly surfaced residual credit risk and accounted for the potential for loss. In the Q4, we anticipated additional problem loans being favorably resolved in a few one-off type transactions, individual loans being resolved. I should also point out that two larger problem loans were paid in full during the quarter. As a consequence of the restructuring and prior year losses, we established a 100% valuation allowance against our deferred tax asset. So that was $60 million. That is reversible when we have determined that our profitability over the next several quarters can prospectively support a change.

Speaker #2: And so doing we identified another 77 million of previously pass-rated loans that were subsequently downgraded to either special mention or substandard. We believe that this discipline will continue to focus our attention and our disclosures on the residual credit risk.

Speaker #2: We believe that the loan-by-loan process that we followed has properly surfaced residual credit risk and accounted for the potential for loss. In the fourth quarter, we anticipated additional problem loans being favorably resolved in a few one-off type transactions, individual loans being resolved.

Speaker #2: I should also point out that two larger problem loans were paid in full during the quarter. As a consequence of the restructuring and prior year losses, we established a 100% valuation allowance against our deferred tax asset.

Speaker #2: So that was 60 million dollars. That is reversible when we have determined that our profitability over the next several quarters and prospectively support a change.

Thomas O'Brien: Our capital raise was very successful, and the stock price has reacted favorably since. While dilution is something that I would never take lightly, the alternative for BCB was much more pessimistic. We believe the interest of all shareholders is best served by protecting the bank and the company with a strong capital structure and by confronting legacy problems head-on. Welcome our new investors and appreciate your support. You, together with our existing shareholders, will find us to be working tirelessly in our collective best interests, transparently and proactively. I have strengthened the executive ranks of the bank and welcomed two new directors, both with extensive public company experience. I am confident that the painful decisions that we have made will yield the kind of results over the coming quarters that fully validate our expectations. That is probably more than enough of my thoughts here.

Speaker #2: Our capital raise was very successful, and the stock price has reacted favorably since. While dilution is something that I would never take lightly, the alternative for BCB was much more pessimistic.

Speaker #2: We believe the interests of all shareholders are best served by protecting the bank and the company with a strong capital structure and by confronting legacy problems head-on.

Speaker #2: Welcome our new investors and appreciate your support. You together with our existing shareholders will find us to be working tirelessly in our collective best interest.

Speaker #2: Transparently and proactively, I've strengthened the executive ranks of the bank and welcomed two new directors, both with extensive public company experience. I'm confident that the painful decisions we have made will yield the kind of results over the coming quarters that fully validate our expectations.

Speaker #2: It's probably more than enough of my thoughts here. As typical, I suspect the questions are going to be more focused and we're going to be happy to take those jawads on the call with me.

Thomas O'Brien: As typical, I suspect the questions are going to be more focused and we are going to be happy to take those. Jawad's on the call with me. Operator, we are ready to take questions.

Speaker #2: And so, operator, we're ready to take questions.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Justin Crowley with Piper Sandler. Your line is open. Please go ahead.

Speaker #1: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand.

Speaker #1: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #1: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Justin Crowley with Piper Sandler.

Speaker #1: Your line is open. Please go ahead.

Justin Crowley: Hey, good morning, everyone.

Speaker #2: Hey, good morning, everyone.

Thomas O'Brien: Morning, Justin.

Speaker #3: Good morning, Justin.

Justin Crowley: Now, obviously a lot of topics in the quarter with the loan sales and still a fair amount sitting in criticized and classified, but as you called out, a pretty healthy allowance to go along with it. So just kind of curious a little more for your thoughts on how exactly you see that level trending into the end of the year with the potential for more sale activity and just overall comfort with any further loss being reflected in the reserve, which Tom, I know you touched on a little.

Speaker #2: Now, obviously, a lot accomplished in the quarter. With the loan sales and still a fair amount sitting and criticizing classified, but as you called out, a pretty healthy allowance to go along with it.

Speaker #2: So, just kind of curious—a little more for your thoughts on how exactly you see that level trending into the end of the year, with the potential for more sale activity, and just overall comfort with any further loss being reflected in the reserve, which, Tom, I know you touched on a little.

Thomas O'Brien: Yeah, sure. Going back to my 1 June call, asset quality was kind of job one through 10. The process we went through in the quarter, we did a pretty deep dive on every single loan over about $1 million. And some we, as I mentioned in my remarks, re-risk rated. We have, I think in total, Jawad can correct me if I am wrong, but almost $100 million in loans that we have marked to market. And if you look in the remaining criticized loans, that is the lion's share of it. So I would say, several of these loans we expect to be cleaned up in the quarter, especially in the substandard category, which is relatively low anyhow, and in the NPL category, which is down to $22 million.

Speaker #3: Yeah, sure. That I mean, going back to my June first call, that asset quality was kind of job one through ten. The process we went through in the quarter we did a pretty deep dive on every single loan over about a million dollars.

Speaker #3: And some we, as I mentioned in my remarks, re-risk rated. We have I think in total jawads can correct me if I'm wrong, but about almost 100 million dollars in loans that we have marked to market.

Speaker #3: And if you look in the remaining criticized loans, that's the lion's share of it. So, I would say several of these loans we expect to be cleaned up in the quarter.

Speaker #3: Especially in the substandard category, which is relatively low anyhow, but and in the NPL category, which is down to 22 million. So it's a risk business, but so I can never say never, but I don't know what else we could have done to identify and price the credits that we have concern of potential loss in.

Thomas O'Brien: So it is a risk business, so I can never say never, but I do not know what else we could have done to identify and price the credits that we have concern of potential loss in.

Thomas O'Brien: Justin-

Thomas O'Brien: Okay, got it.

Speaker #2: Just to classify loans, the classified loans saw a 70% reduction—pretty meaningful, from $160 million to $46 million. And our reserve coverage went up from 28% to 150%.

Justin Crowley: The classified loans saw a 70% reduction, pretty meaningful from $160 million to $46 million. Our reserve coverage went up from 28% to 150%. So fairly strong progress in reducing our exposure to classified loans. I hear you on that's helpful. Then I just wanted to confirm just how you're thinking about ultimately the mechanics of the DTA and the valuation allowance. I guess assuming the bank returns to profitability, let's just say, in Q4, and that can be maintained. What could the timing of that recapture look like? Would you expect full recapture just all in one fell swoop as opposed to kind of occurring piecemeal?

Speaker #2: So fairly strong progress in reducing our exposure to classified loans.

Speaker #3: No, I hear you on that. That's helpful. And then maybe just wanted to confirm just how you're thinking about ultimately the mechanics of the DTA and the valuation allowance.

Speaker #3: I guess assuming the bank returns to profitability, let's just say in the fourth quarter, and that can be maintained, what kind of timing of that recapture look like?

Speaker #3: And would you expect full recapture just all in one fell swoop as opposed to kind of a current piecemeal?

Thomas O'Brien: Yeah, it's kind of binary, Justin. It's either in or out. I would, and again, I guess I'd probably reflect on my experience at Sun National Bank with the DTA valuation allowance there. I would think by the end of 2027, assuming both quantity and quality of earnings in each of the next five quarters support the decision, I think that's probably the first opportunity we'd have to reconsider.

Speaker #2: Yeah. No, it's kind

Speaker #3: of binary, Justin. It's either in or out. So I would and again, I guess I'd probably reflect on my experience at Sun National Bank with the DTA valuation allowance there, but I would think by the end of '27, assuming both quantity and quality of earnings in each of the next five quarters, support the decision, I think that's probably the first opportunity we'd have to reconsider.

Justin Crowley: Okay, great. Then maybe just one last one, just on the level of expenses from here. Obviously some added costs in Q3, just given everything that was going on. How much of that falls over the run rate as we think about Q4 and then as we get into the next year? I'm sure there'll be some elevated expenses, but just kind of in comparison to what we saw this quarter.

Speaker #2: Okay, great. And then maybe just one last one, just on a level of expense from here. Obviously, some added costs in the third quarter, just given everything that was going on.

Speaker #2: And how much of that falls over the run rate as we think about the fourth quarter? And then, as we get into next year, I’m sure there will be some elevated expenses, but just in comparison to what we saw this quarter.

Thomas O'Brien: Yeah, I think that's absolutely to be expected. Professional fees, legal fees will continue to be a little bit higher in this Q4 because of just some of the remaining things that we have going on, including the cannabis transaction. If I recall, I think it was about $5 million of higher expenses this quarter. I think the lion's share of that should start to drop away. We also have the reincorporation into Delaware, which is coming up in the middle of November. So those are all expenses of kind of the restructure of the entire institution.

Speaker #3: Yeah, I think that's absolutely to be expected. Professional fees, legal fees, will continue to be a little bit higher in this fourth quarter because of just some of the remaining things that we have going on, including the cannabis transaction.

Speaker #3: And if I recall, I think we had it was about $5 million of higher expenses this quarter. And I think the lion's share of that should start to drop away.

Speaker #3: And we also have the reincorporation into Delaware. Which is coming up in the middle of November. So those are all expenses of kind of the restructure of the entire institution.

Justin Crowley: Okay. You would expect

Thomas O'Brien: That is the last time that

Speaker #2: Okay, so you'd expect that drop-off. Yeah, go ahead.

Justin Crowley: to see that drop off. Yeah, go ahead.

Thomas O'Brien: Yeah. Jawad, feel free to

Speaker #3: Yeah. Yeah. Feel free to.

Jawad Chaudhry: Yeah, I think-

Speaker #2: Yeah, I think just echoing what Tom said, I would size probably two and a half to three million dollars of elevated expenses in the quarter.

Thomas O'Brien: burn them up

Jawad Chaudhry: Just echoing what Tom said, I would say it is probably $2.5 to $3 million of elevated expenses in the quarter tied to a number of transactions that we executed. Q4 would still see some elevated inflation in expenses. We should be able to give you better guidance, Justin, when we talk about our Q4 results for the full year 2027. When we come back, we should be able to give you better guidance.

Speaker #2: Tied to a number of transactions that we executed. Fourth quarter would still see some elevation in inflation and expenses. We should be able to give you better guidance.

Speaker #2: Just in when we talk about our fourth quarter results, for the full year 2027, when we come back, we should be able to give you better guidance.

Justin Crowley: Okay. But that is 2.5-

Speaker #3: Okay, but that's two and a half.

Thomas O'Brien: Justin, I-

Justin Crowley: Go ahead.

Thomas O'Brien: No, I am going to Justin, I would say too, and again, this just kind of goes back to my experience, but I mentioned this to the board of directors yesterday also, that typically when you go through the work that we have in this context, you start to see some of the fruits of your labor. You start to see some recoveries. There is some, I would say, positive volatility in that likely or it wouldn't be a surprise. But I think in terms of the negative part of that, I think we took a pretty sharp pencil to the numbers.

Speaker #2: Go ahead.

Speaker #3: No, I'm going to Justin, I would say too, and again, this is just kind of goes back to my experience, but I mentioned this to the board of directors yesterday also, that typically when you go through the work that we have, in this context, you start to see some of the fruits of your labor.

Speaker #3: You start to see some recoveries. And there's some I would say positive volatility in that likely or wouldn't be a surprise. But I think in terms of the negative part of that, I think we pretty took a pretty sharp pencil to the numbers.

Justin Crowley: Right. Okay. Jawad, that $2.5 or 3 million that you called out, you would expect at least that portion of the increase in expenses to maybe fall back out in Q4? Is that a reasonable assumption?

Speaker #2: Right. Okay. And then Joel, that two and a half or three million call it that you called out, you would expect that at least that portion of the increase in expenses to maybe fall back out in the fourth quarter?

Speaker #2: Is that a reasonable assumption?

Jawad Chaudhry: For Q4, a good portion of that should fall back, Justin, but we are still pursuing our cannabis sale transaction. We are still cleaning up the balance sheet for some leftover trades, loans that are sitting on held for sale. So it's difficult to give you a precise estimate for Q4. But, it's a fair statement that a good portion should fall off, and we'll provide better guidance when we come back to talk about our Q4 results.

Speaker #3: The fourth quarter good portion of that should fall back, Justin. But we are still pursuing our cannabis sale transaction. We are still cleaning up the balance sheet for some leftover trades.

Speaker #3: Those that are sitting in our help for sale. So it's difficult to give you a precise estimate for the fourth quarter, but yes, it's a fair statement that a good portion should fall off.

Speaker #3: And we'll provide better guidance when we come back to talk about our fourth quarter results.

Justin Crowley: Okay, perfect. I will leave it there. Thanks so much.

Speaker #2: Okay, perfect. I will leave it there. Thanks so much.

Thomas O'Brien: Thanks, Justin.

Speaker #3: Thanks, Justin.

Operator: Your next question comes from the line of Ross Haberman with RLH Investments. Your line is open. Please go ahead.

Speaker #1: Your next question comes from the line of Ross Haberman with RLH Investments. Your line is open. Please go ahead.

Ross Haberman: Good morning, guys. Thank you for taking the call. Jawad, just two very brief numbers questions. Criticized loans of $200 million, does that include the cannabis loans?

Speaker #3: Good morning, guys. Thank you for taking the call. Joel, just a couple of just to be very brief numbers questions. Criticized loans of $200 million, does that include the cannabis loans?

Thomas O'Brien: The cannabis loans-

Speaker #2: So the cannabis loans—go ahead, please. Go ahead, Tom.

Jawad Chaudhry: Go ahead, please. Go ahead, Tom.

Thomas O'Brien: Yeah, we will both talk about it. The cannabis loans were marked to market, but I would say too, that those loans were performing.

Speaker #3: Yeah, yeah. We'll both talk, but the cannabis loans were marked to market. And but I would say too that those loans were performing.

Jawad Chaudhry: Ross, just to comment on the number that you quoted. Our criticized loans that we had reported for Q2 were $207 million. For Q3, that number is $153 million. It's not $200 million.

Speaker #2: And Ross, just to comment on the number that you quoted, our criticized loans that we had reported for the second quarter were $207 million.

Speaker #2: For the third quarter, that number is $153 million. So it's not $200 million.

Ross Haberman: Okay. Could you give us a little update on the Business Express loans? I think as of last quarter, they were around $69 or $70 million. What's the balance, and what are you seeing

Speaker #3: Okay. And could you give us a little update on the business express loans? I think as of last quarter, there were around 69 or 70 million.

Speaker #3: What's the balance? And what do you see as the current default rate? And what are you allowance? What's your quarterly allowance? Against that?

Jawad Chaudhry: Sure

Ross Haberman: as the current default rate, and what's your quarterly allowance

Jawad Chaudhry: Sure

Ross Haberman: against that?

Jawad Chaudhry: Sure.

Ross Haberman: Thank you.

Speaker #2: Sure.

Speaker #3: Thank you.

Thomas O'Brien: Go ahead, Jawad.

Speaker #2: Go ahead, Joel.

Speaker #3: Business.

Jawad Chaudhry: Sure. The Business Express loan portfolio balance is approximately $65 million now, Ross. The portfolio continues to behave well. You may recall in the last call we had talked about we were seeing an average of $3.7 million of quarterly losses through middle of last year. Since then, the portfolio has behaved much better. Our reserve coverage that we had reported for the second quarter for the portfolio was approximately 15%, 1 5. During the third quarter, the portfolio once again behaved well. We only saw close to $1 million of losses. We still did a little bit of a reserve build, so the reserve coverage increased from 15% to close to 18%. You will see that detail when we publish our 10-Q.

Jawad Chaudhry: Sure. The Business Express loan portfolio balance is approximately $65 million now, Ross. The portfolio continues to behave well. You may recall in the last call we had talked about we were seeing an average of $3.7 million of quarterly losses through middle of last year. Since then, the portfolio has behaved much better. Our reserve coverage that we had reported for the Q2 for the portfolio was approximately 15%, 1 5. During the Q3, the portfolio once again behaved well. We only saw close to $1 million of losses. We still did a little bit of a reserve build, so the reserve coverage increased from 15% to close to 18%. You will see that detail when we publish our 10-Q.

Speaker #2: Sure. The business express loan portfolio balance is approximately $65 million now, Ross. The portfolio continues to behave well. You may recall in the last call, we had talked about we were seeing an average of 3.7 million dollars of quarterly losses.

Speaker #2: Through the middle of last year, since then the portfolio has behaved much better. Our reserve coverage that we had reported for the second quarter for the portfolio was approximately 15%, one-five.

Speaker #2: And during the third quarter, the portfolio once again behaved well. We only saw close to a million dollars of losses. But we still did a little bit of a reserve belt.

Speaker #2: So the reserve coverage increased from 15% to close to 18%. And you would see that detail when we publish our 10-Q.

Ross Haberman: Just one final question. Tom, are you optimistic that you are going to sell or have a deal with the cannabis loans and deposits in the fourth quarter?

Ross Haberman: Just one final question. Tom, are you optimistic that you are going to sell or have a deal with the cannabis loans and deposits in the Q4?

Speaker #3: And just one final question, Tom. Are you optimistic that you're going to sell or get have a deal with the cannabis loans and deposits in the fourth quarter?

Thomas O'Brien: Yes, I think so. I am trying to pull the numbers out of my head here. It is about $70 to $80 million in deposits and about $70 in loans. I think we are pretty far along. So there is nothing that has come up that stops us dead in its tracks. I feel pretty good about it.

Speaker #2: Yes, I think so. I mean, it's I think I'm trying to pull the numbers out of my head here. It's about 70 to 80 million deposits and about 70 loans.

Speaker #2: But yeah, I think we're pretty far along. So there's nothing that's come up to stop this deadness track. I feel pretty good about it.

Ross Haberman: Just one final question. Any further deterioration in any of the loans since you first made your initial swipe or cut, or everything else basically is performing as you expected and at least at the moment, you do not feel the necessity to make any further larger allowances?

Speaker #3: And just one final question. Any further deterioration in any of the loans since you first made your initial swipe or cut or everything else basically is performing as you expected?

Speaker #3: And, at least at the moment, you're not going to feel the necessity to make any further, larger allowances?

Thomas O'Brien: No, absolutely. I think, as I mentioned, the process we went through, I guess starting after I had been at the bank for about a month of looking at the pass-rated loans, was really driven by one particular loan that presented with problems. I looked at the existing risk rating, and in my view, it was kind of too strong for the risk and the credit. So, I just said at that point, "Okay, let us go through all of them, or virtually all of them," and see. Again, it is hard to predict, but of what the legacy portfolio was, they have all been touched. Most of them have been visited. We did a probability of default and a loss given default and all of that factors into the numbers you saw on the quarter.

Speaker #2: No, absolutely. I think, as I mentioned, the process we went through, I guess starting in after I'd been at the bank for about a month of looking at the pass rate of loans, was really driven by a one particular loan that presented with problems and we and I looked at the existing risk rating.

Speaker #2: And in my view, it was kind of too strong for the risk and the credit. So I just said at that point, okay, let's go through all of them.

Speaker #2: Reverse all of them. So again, it's hard to predict, but of what the legacy portfolio is, they've all been up. Most of them have been visited.

Speaker #2: We did a probability of default and a loss given default, and all of that factored into the numbers you saw in the quarter.

Ross Haberman: Thanks for your help. The best of luck.

Speaker #3: Thanks for your help. The best of luck.

Thomas O'Brien: Sure. Yeah. Thanks, Ross.

Speaker #2: Sure. Yeah, thanks, Ross. Thank you.

Ross Haberman: Thank you.

Operator: There are no further questions at this time. I will now turn the call back to Thomas O'Brien for closing remarks.

Speaker #1: There are no further questions at this time. I will now turn the call back to Thomas O'Brien for closing remarks.

Thomas O'Brien: Well, okay. That was easier than I expected. Our next call will be in Q4, the earnings release in probably late January. I am expecting a much better announcement at that time. I think, both for internal consumption within BCB, and our investor base and others, you will start to see the, again, the fruits of our labor and the process we went through. It is obviously pretty complex right now with all these very large numbers being presented. But the diligence in the process and the carefulness that we exercise in terms of assigning risk and potential for loss, I think is going to give us the protection that we all expect and demand from the bank. I think, again, I think Q4 will be a very good look for all of us at that process. But at this point, we are pretty optimistic.

Speaker #3: Well, okay. That was easier than I expected. So our next call will be in the fourth quarter, the earnings release in probably late January.

Speaker #3: So I'm expecting a much better announcement at that time. And I think both for internal consumption within BCB and our investor base and others, you'll start to see the again, the fruits of our labor and the process we went through.

Speaker #3: It's obviously a pretty complex right now with all these very large numbers being presented. But the diligence in the process and the carefulness that we exercised in terms of assigning risk and potential for loss, I think is going to give us the protection that we all expect and demand.

Speaker #3: From the bank. And I think, again, I think the fourth quarter will be a very good look for all of us at that process.

Speaker #3: But at this point, we're pretty optimistic. So with that, I think thank you for joining. Last couple of months of the year. And I hope it's all a good one for you.

Thomas O'Brien: With that, thank you for joining last couple of months of the year, and hope it is all a good one for you, and we will be in touch in early 2027. Thank you.

Speaker #3: And we'll be in touch in early '27. Thank you.

Operator: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining BCBP third quarter earnings call. The line will disconnect automatically.

Operator: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining BCBP Q3 earnings call. The line will disconnect automatically.