Key Highlights

  • Loss per diluted share of USD 6.92 was narrower than the consensus estimate of a USD 8.53 loss.
  • The provision for credit losses reached USD 115.0 million, and net charge-offs totaled USD 89.7 million in the quarter.
  • The bank sold USD 204.3 million of problem loans and raised USD 98.0 million through an underwritten equity offering.
  • Criticized and classified loans fell to USD 198.9 million from USD 367.4 million, and non-accrual loans to USD 22.4 million.

BCB Bancorp, Inc. (NASDAQ:BCBP) reported a third quarter 2026 net loss attributable to common stockholders of USD 132.5 million, or USD 6.92 per diluted share, compared with a loss of USD 0.85 per share in the second quarter and earnings of USD 0.22 per share a year earlier. The loss per share was narrower than the consensus estimate of a USD 8.53 loss. Net interest income of USD 22.6 million and noninterest income of USD 5.2 million together equal about USD 27.8 million of revenue.

Two items drove the result: the USD 115.0 million provision for credit losses and a non-cash USD 59.9 million valuation allowance against the deferred tax asset, which lifted the income tax provision to USD 23.5 million.

De-Risking Actions and Asset Quality

The bank completed loan sales totaling USD 204.3 million, mostly criticized or classified credits, including about USD 179.7 million of commercial and multifamily real estate loans, which produced a USD 42.3 million charge-off. It also moved USD 100.9 million of loans to held for sale, including USD 70.2 million of cannabis loans, with a USD 44.2 million charge-off. Held for sale loans stood at USD 67.6 million.

The allowance for credit losses on loans rose to USD 70.3 million, or 3.12% of gross loans, from USD 33.7 million at year end, and covers 313.4% of non-accrual loans. Non-accrual loans were USD 22.4 million, or 1.00% of gross loans, against USD 61.2 million at June 30. Past due loans were USD 52.2 million, and the net interest margin was 3.03%, unchanged from the prior quarter and up from 2.88%.

Capital, Balance Sheet and Leadership Changes

The equity offering raised USD 91.4 million net, with about USD 20 million retained at the holding company. The bank leverage ratio was 9.0% and the consolidated company ratio 8.4%, and management described capital levels as well capitalized. Stockholders equity fell to USD 246.1 million from USD 304.3 million at year end, and book value per common share was USD 7.18 against USD 14.73 at June 30.

Total assets declined 7.9% to USD 3.02 billion, gross loans held for investment dropped 17.4% to USD 2.25 billion and cash rose to USD 500.3 million. Chief Executive Officer Thomas M. O'Brien said the actions de-risked the balance sheet while noting the work is far from complete. The company also reorganized senior roles, added two independent directors, appointed a chief risk officer and plans to name a chief audit officer before year end.

Credit and Capital Items to Follow

Several figures frame the next report. Criticized and classified loans of USD 198.9 million, or 8.84% of gross loans, compare with 13.96% in June. The allowance stands at 152.4% of classified loans held for investment, and the efficiency ratio improved to 78.5% from 96.8%.

Management said it is focused on strengthening risk management, improving operating performance and working toward sustainable profitability. Markers include the appointment of a chief audit officer before year end, the USD 67.6 million held for sale portfolio, the 8.4% consolidated leverage ratio and the full valuation allowance on deferred taxes.