Story
BCB Bancorp Stock Plunges Over 20% on Public Offering, Anticipated Loan Sale Losses
Summary
Shares of the New Jersey-based bank fell sharply in after-hours trading after it announced a stock sale and a plan to offload $210 million in problem loans, projecting a significant net loss for the third quarter.
Shares of BCB Bancorp Inc. (NASDAQ:BCBP) dropped 20.6% in after-hours trading Wednesday following the company's announcement of an underwritten public offering of common stock and plans to sell a significant portion of its troubled loans.
Capital Raise and Loan Portfolio Sale
The New Jersey-based bank holding company said it launched the stock offering to raise capital for general corporate purposes. According to the announcement, proceeds will be used to maintain liquidity, support the bank's capital levels, and reduce debt, particularly in connection with the planned disposition of problem loans.
BCB Bancorp disclosed it is marketing approximately $210 million in nonperforming loans for sale. The portfolio consists of:
- $183.4 million in commercial and multifamily real estate loans
- $16.7 million in commercial and industrial loans
- $9.8 million in construction loans
AdThe company noted that most of these loans, valued as of June 30, 2026, carry internal credit risk ratings of "Special Mention" or "Substandard."
Significant Financial Impact Expected
To account for the planned sale, BCB Bancorp expects to report a provision for credit losses between $112 million and $120 million for the third quarter of 2026. This includes an anticipated pre-tax loss of $87 million specifically from the loan sales.
As a result, the bank projects a net loss for the quarter ranging from $126.2 million to $136.1 million. The company also recorded a $50 million valuation allowance against its entire net deferred tax asset, a move prompted by its cumulative loss position in recent years. In a separate strategic move, BCB Bancorp is also marketing its cannabis-related business lines for a potential sale, which includes approximately $69 million in loans and $70 million in deposits.
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