BCB Bancorp Posts $132.5 Million Third-Quarter Loss as It Addresses Loan Risks
Key Facts
BCB Bancorp reported a net loss attributable to common shareholders of $132.5 million in the third quarter of 2026, compared with a loss of $14.8 million in the second quarter and net income of $3.8 million in the same period of 2025, according to a company earnings summary published via GlobeNewswire on October 29. Diluted loss per share was $6.92, versus a loss of $0.85 in the prior quarter and earnings of $0.22 a year earlier. For the nine months ended September 30, the loss was $142.8 million, compared with $1.9 million in the corresponding period of 2025. The results follow the company’s announcement that it was addressing legacy credit challenges and selling loan portfolios, a move it said was aimed at reducing risks on its balance sheet. Chief Executive Thomas O’Brien said the company believes the sales “meaningfully reduce our balance sheet risk and remove a significant source of uncertainty.”
The company had previously forecast a third-quarter credit loss provision of between $112 million and $120 million, with the measures including a pretax loss of about $87 million related to the sale of nonperforming loans and the transfer of other loans to held-for-sale status. It also recorded a valuation allowance of about $50 million against all of its net deferred tax assets for the quarter ended September 30. These items explain a major part of the loss, as credit costs and the tax valuation impact coincided in the same period. Management spent the preceding three months reviewing legacy credit challenges, reassessing risk ratings and developing action plans, according to its September update. O’Brien described the expected financial result for the quarter at the time as challenging.
The portfolios the company agreed to sell included about $180.7 million in commercial real estate and multifamily loans, about $14.8 million in commercial and industrial loans, and about $9.8 million in construction loans, based on original balances recorded on June 30. In a September 25 disclosure, the company said 5 of the 6 sale transactions had closed and that it expected to complete the final transaction before the end of the third quarter. The volume of loans sold reflects the breadth of the effort to dispose of assets tied to credit risk, while management linked the move to removing a source of uncertainty. Nonaccrual loans totaled $72.0 million, or 2.73% of total loans, at the end of June, compared with $63.3 million and 2.32% on December 31, 2025. The comparison shows an increase in nonaccrual loans and their share of the total portfolio between the two dates.
Alongside the loan sales, BCB Bancorp raised capital through a public stock offering. On September 16, it announced pricing of an underwritten offering of 11 million shares, with gross proceeds of $85.25 million before expenses and commissions. The company closed the offering on September 18 after the underwriter exercised its overallotment option in full, bringing gross proceeds to $98 million. The company had said the suspension of regular and preferred dividends in June was intended to preserve the bank’s capital and liquidity to support balance sheet strengthening initiatives. These steps came as it reassessed credit risks and disposed of nonperforming loans, as part of the balance sheet restructuring path announced by management.
In its earlier third-quarter outlook, the company put net interest margin at between 2.90% and 3.00%, alongside its forecast for credit loss provisions of between $112 million and $120 million. Net interest margin was 3.03% in the second quarter of 2026, compared with 2.80% in the second quarter of 2025; the company at the time attributed the year-over-year increase to lower interest-bearing liability costs. The company’s stock, listed under the ticker BCBP, closed at $8.57 on October 28, according to EL7 data. Management was scheduled to hold a conference call to discuss third-quarter results on October 29 at 8:45 a.m. Eastern time. The call is expected to give management an opportunity to discuss the results and measures related to loans and capital.