BCB Bancorp Expects Third-Quarter Loss of Up to $136.1 Million
Key Facts
BCB Bancorp expects to report a net loss of between $126.2 million and $136.1 million in the third quarter of 2026, according to an update the company announced on September 16. The company attributed the expected loss to anticipated credit losses and a reassessment of deferred tax assets. It said the quarter’s provision for credit losses could range from $112 million to $120 million. The provision includes, according to the company, a pretax loss of approximately $87 million related to the sale of nonperforming loans and the transfer of additional loans to the held-for-sale category. The company had announced that it would release its quarterly results before the market opened on October 29, with management to hold a call to discuss them at 8:45 a.m. Eastern time that day.
The expected loss follows BCB Bancorp’s report of a net loss of $14.8 million in the second quarter of 2026, compared with net income of $4.9 million in the first quarter, according to its earnings release. This marks a reversal between the first- and second-quarter results ahead of the announced third-quarter outlook. In its September update, management said it had reassessed credit risk and was addressing challenges involving legacy loans. It described the announced measures as laying the groundwork for a stronger, more sustainable and profitable institution, while acknowledging that the quarter’s result would be difficult. The update did not say that the expected loss range represented the final third-quarter result.
On September 25, the company announced definitive agreements to sell portfolios of nonperforming loans, with unpaid principal balances of approximately $205.3 million as of June 30, 2026. BCB Bancorp estimated the pretax loss associated with the loan sales at approximately $43.3 million. In its earlier update, the company included the impact of the sales, along with the transfer of additional loans to the held-for-sale category, in an expected pretax loss of approximately $87 million. This provides context for part of the expected provision, which the company said would range from $112 million to $120 million. These figures remain estimates the company announced before the quarterly results were due to be released.
Alongside its efforts to address the loans, the company completed a public offering on September 18 of 12,650,000 shares, generating gross proceeds of approximately $98,037,500 before offering expenses. It said net proceeds would be used for general purposes, including supporting the bank’s liquidity and capital, funding working capital needs, reducing debt, and maintaining capital and liquidity ratios. The offering followed the company’s announcement that it expected to record a large third-quarter loss, as part of its stated measures to address its financial position and credit risk. The company set the results release for before the market opened on October 29, followed by a management call at 8:45 a.m. Eastern time. Management is scheduled to discuss the results on that call, according to its earlier announcement.