BCB BANCORP INC Fair Value Disclosure
Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been re-evaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end.
ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. There were no liabilities measured at fair value on a recurring or nonrecurring basis at December 31, 2025 and 2024.
For assets measured at fair value on a recurring basis, the fair value measurements, by level, within the fair value hierarchy are as follows:
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| (Level 1) |
| (Level 2) |
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| Quoted Prices in |
| Significant |
| (Level 3) | |||
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| Active Markets |
| Other |
| Significant | |||
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| for Identical |
| Observable |
| Unobservable | |||
Description |
| Total |
| Assets |
| Inputs |
| Inputs | ||||
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| (In Thousands) | ||||||||||
As of December 31, 2025: |
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Securities Available-for-Sale |
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Debt Securities Available-for-Sale |
| $ | 126,395 |
| $ | - |
| $ | 126,395 |
| $ | - |
Marketable Equities |
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| 9,172 |
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| 9,172 |
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| - |
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| - |
Total Securities Available-for-Sale |
| $ | 135,567 |
| $ | 9,172 |
| $ | 126,395 |
| $ | - |
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As of December 31, 2024: |
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Securities Available for Sale |
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Debt Securities Available-for-Sale |
| $ | 101,717 |
| $ | - |
| $ | 101,717 |
| $ | - |
Marketable Equities |
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| 9,472 |
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| 9,472 |
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| - |
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| - |
Total Securities Available-for-Sale |
| $ | 111,189 |
| $ | 9,472 |
| $ | 101,717 |
| $ | - |
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy are as follows:
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| (Level 1) |
| (Level 2) |
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| Quoted Prices in |
| Significant |
| (Level 3) | |||
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| Active Markets |
| Other |
| Significant | |||
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| for Identical |
| Observable |
| Unobservable | |||
Description |
| Total |
| Assets |
| Inputs |
| Inputs | ||||
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| (In Thousands) | ||||||||||
As of December 31, 2025: |
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Individually Evaluated Loans |
| $ | 20,206 |
| $ | - |
| $ | - |
| $ | 20,206 |
Other real estate owned |
| $ | 5,000 |
| $ | - |
| $ | - |
| $ | 5,000 |
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As of December 31, 2024: |
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Individually Evaluated Loans |
| $ | 19,391 |
| $ | - |
| $ | - |
| $ | 19,391 |
Certain individually evaluated loans and OREO were adjusted to the fair value, less costs to sell, of the underlying collateral securing these loans resulting in losses. The losses on individually evaluated loans is not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for credit losses. The loss on OREO is recorded as a component of non-interest income. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties.
During the year ended December 31, 2025, the Company recorded write-downs of $15,077,000 related to an OREO property. This loss was the result of updated appraisals, changes in market conditions, and management’s evaluation of estimated selling costs. The valuation adjustments are included in “Other real estate owned, net” within the Consolidated Statements of Operations.
There were no liabilities measured at fair value at December 31, 2025 or December 31, 2024.
Note 18 - Fair Value Measurements and Fair Values of Financial Instruments (continued)
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value, (Dollars in thousands):
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Quantitative Information about Level 3 Fair Value Measurements | |||||
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| Fair Value | Valuation | Unobservable | Range |
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| Estimate | Techniques | Input |
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December 31, 2025: |
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Individually Evaluated Loans | $ | 20,206 | Appraisal of collateral (1) | Appraisal adjustments (2) | 0%-10% |
Other Real Estate Owned | $ | 5,000 | Appraisal of collateral (1) | Appraisal adjustments (2) | 5% |
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Quantitative Information about Level 3 Fair Value Measurements | |||||
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| Fair Value | Valuation | Unobservable | Range |
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| Estimate | Techniques | Input |
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December 31, 2024: |
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Individually Evaluated Loans | $ | 19,391 | Appraisal of collateral (1) | Appraisal adjustments (2) | 0%-10% |
(1)Fair value is generally determined through independent appraisals or broker opinion of the underlying collateral, which generally include various level 3 inputs which are not identifiable.
(2)Appraisals or broker opinion may be adjusted by management for qualitative factors such as age of appraisal, expected condition of property, economic conditions, and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at December 31, 2025 and 2024.
Cash and Cash Equivalents (Carried at Cost)
The carrying amounts reported in the consolidated statements of financial condition for cash and interest-earning deposits approximate those assets’ fair values.
Securities (Carried at Fair Value)
The fair value of securities is determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices.
Loans Held for Sale (Carried at Lower of Cost or Fair Value)
The fair value of loans held for sale is determined, when possible, using quoted secondary-market prices. If no such quoted prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for specific attributes of that loan. Loans held for sale are carried at the lower of cost or fair value.
Loans Receivable (Carried at Amortized Cost)
The fair values of loans, except for certain individually evaluated loans, are estimated using discounted cash flow analyses, using market rates at the date of the statements of financial condition that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.
Individually Evaluated Loans (Generally Carried at Fair Value)
Individually evaluated loans are those for which the Company has measured and recorded an ACL generally based on the fair value of the loan’s collateral, less estimated costs to sell. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value at December 31, 2025 and 2024 consists of the loan balances of $26.8 million and $31.2 million net of an ACL of $6.6 million and $11.8 million, respectively.
FHLB of New York Stock (Carried at Cost)
The carrying amount of restricted investment in bank stock approximates fair value and considers the limited marketability of such securities.
Accrued Interest Receivable and Payable (Carried at Cost)
The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value.
Other Real Estate Owned (Carried at Fair Value)
The fair value of other real estate owned is recorded at fair value less estimated costs to sell at the date of acquisition. After initial recognition, OREO is evaluated periodically and is carried at the lower of its carrying amount or fair value less estimated costs to sell. Fair value is derived primarily from third-party appraisals, adjusted for estimated selling costs and market conditions, and is therefore considered a Level 3 non-recurring fair value measurement. Any subsequent write-downs to fair value are charged to other real estate owned expense.
Note 18 - Fair Value Measurements and Fair Values of Financial Instruments (continued)
Deposits (Carried at Amortized Cost)
The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits.
Debt Including Subordinated Debentures (Carried at Amortized Cost)
Fair values of debt are estimated using discounted cash flow analysis, based on quoted prices for new long-term debt with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party.
Off-Balance Sheet Financial Instruments
Fair values for the Bank’s off-balance sheet financial instruments (lending commitments and unused lines of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. The fair value of these commitments was deemed immaterial and is not presented in the accompanying table.
The carrying values and estimated fair values of financial instruments were as follows at December 31, 2025 and 2024:
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| As of December 31, 2025 | ||||||||||||
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| Quoted Prices in Active |
| Significant |
| Significant | |||
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| Carrying |
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| Markets for Identical Assets |
| Other Observable Inputs |
| Unobservable Inputs | ||||
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| Value |
| Fair Value |
| (Level 1) |
| (Level 2) |
| (Level 3) | |||||
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| (In Thousands) | |||||||||||||
Financial assets: |
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Cash and cash equivalents |
| $ | 276,584 |
| $ | 276,584 |
| $ | 276,584 |
| $ | - |
| $ | - |
Interest-earning time deposits |
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| 735 |
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| 735 |
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| - |
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| 735 |
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| - |
Debt securities available-for-sale |
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| 126,395 |
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| 126,395 |
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| - |
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| 126,395 |
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| - |
Equity investments |
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| 9,172 |
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| 9,172 |
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| 9,172 |
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| - |
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| - |
Loans receivable, net |
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| 2,691,091 |
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| 2,643,200 |
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| - |
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| - |
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| 2,643,200 |
FHLB of New York stock, at cost |
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| 14,176 |
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| 14,176 |
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| - |
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| 14,176 |
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| - |
Accrued interest receivable |
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| 13,834 |
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| 13,834 |
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| - |
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| 13,834 |
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| - |
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Financial liabilities: |
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Deposits |
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| 2,673,573 |
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| 2,674,494 |
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| 1,702,109 |
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| 972,385 |
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Debt |
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| 235,000 |
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| 236,514 |
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| - |
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| 236,514 |
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Subordinated debentures |
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| 43,210 |
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| 40,034 |
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| - |
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| 40,034 |
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Accrued interest payable |
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| 4,056 |
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| 4,056 |
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| - |
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| 4,056 |
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| - |
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| As of December 31, 2024 | ||||||||||||
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| Quoted Prices in Active |
| Significant |
| Significant | |||
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| Carrying |
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| Markets for Identical Assets |
| Other Observable Inputs |
| Unobservable Inputs | ||||
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| Value |
| Fair Value |
| (Level 1) |
| (Level 2) |
| (Level 3) | |||||
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| (In Thousands) | |||||||||||||
Financial assets: |
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Cash and cash equivalents |
| $ | 317,282 |
| $ | 317,282 |
| $ | 317,282 |
| $ | - |
| $ | - |
Interest-earning time deposits |
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| 735 |
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| 735 |
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| - |
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| 735 |
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| - |
Debt securities available-for-sale |
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| 101,717 |
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| 101,717 |
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| - |
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| 101,717 |
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| - |
Equity investments |
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| 9,472 |
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| 9,472 |
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| 9,472 |
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| - |
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| - |
Loans held for sale |
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| - |
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| - |
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| - |
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| - |
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| - |
Loans receivable, net |
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| 2,996,259 |
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| 2,900,892 |
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| - |
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| - |
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| 2,900,892 |
FHLB of New York stock, at cost |
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| 24,272 |
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| 24,272 |
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| - |
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| 24,272 |
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Accrued interest receivable |
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| 15,176 |
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| 15,176 |
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| - |
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| 15,176 |
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| - |
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Financial liabilities: |
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Deposits |
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| 2,750,858 |
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| 2,751,625 |
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| 1,721,602 |
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| 1,030,023 |
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| - |
Debt |
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| 455,361 |
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| 456,290 |
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| - |
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| 456,290 |
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| - |
Subordinated debentures |
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| 42,961 |
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| 41,594 |
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| - |
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| 41,594 |
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| - |
Accrued interest payable |
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| 5,195 |
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| 5,195 |
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| - |
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| 5,195 |
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| - |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Mar 9, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 11, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 6, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Mar 14, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.