BCB Bancorp Announces Stock Offering and Planned Loan Sales

What Happened

• BCB Bancorp (BCBP) filed an 8‑K on September 16, 2026 announcing an underwritten public offering of common stock and that BCB Community Bank identified and began marketing a portfolio of problem loans. Management said it received non‑binding indications of interest covering the approximately $210 million aggregate principal balance of those problem loans.
• The Bank will transfer any loans not sold by quarter‑end to held for sale (recorded at estimated fair value) and expects to continue sale efforts into Q4. In addition, the Bank intends to transfer roughly $27 million of commercial real estate loans with credit weakness and approximately $69 million of cannabis‑related loans (plus ~$70 million of cannabis‑related deposits as of June 30, 2026) to held for sale in Q3. The combined amount of the CRE and cannabis loans expected to be transferred is about $96 million.
• For Q3 2026 the Company expects a provision for credit losses of $112 million to $120 million, which includes an expected pre‑tax loss of about $87 million tied to the anticipated sale and transfers. The Company recorded a valuation allowance of roughly $50 million against net deferred tax assets for the quarter ended September 30, 2026 and currently expects a net loss for Q3 2026 in the range of $126.2 million to $136.1 million.

Key Details

• Problem loans marketed for sale: ≈ $210 million aggregate principal balance (non‑binding offers received).
• Additional transfers to held for sale in Q3: ≈ $27M CRE loans + ≈ $69M cannabis loans (≈ $96M total).
• Expected Q3 provision for credit losses: $112M–$120M; expected pre‑tax loss related to sales/transfers: ≈ $87M.
• Valuation allowance recorded vs. net deferred tax assets: ≈ $50M; expected Q3 net loss: $126.2M–$136.1M.

Why It Matters

• These actions and charges will be the primary drivers of the Company’s large expected Q3 2026 loss and the recorded reduction in deferred tax assets. The launched underwritten offering is a material corporate action disclosed alongside the planned loan sales. Investors should note the company’s stated figures above will appear in Q3 financial results and reflect management’s efforts to address a concentrated set of criticized/classified loans.