BCB Bancorp earnings swung to a $132.5 million loss attributable to common stockholders in the third quarter of 2026, as the bank holding company recorded higher credit costs and a deferred-tax valuation allowance.

Key Takeaways

  • The loss was $6.92 per diluted share, compared with earnings of $0.22 a year earlier.
  • BCB sold $204.3 million of problem loans and transferred another $100.9 million to held-for-sale status.
  • A completed stock offering generated $91.4 million in net proceeds.

BCB Bancorp earnings and credit costs

The Bayonne, New Jersey-based company reported its results on October 29. Its third-quarter loss attributable to common stockholders compared with a $14.8 million loss in the second quarter and $3.8 million in income in the third quarter of 2025.

BCB said the latest loss was driven primarily by a $115.0 million provision for credit losses and a $59.9 million valuation allowance against its deferred tax assets. The credit provision was $19.0 million in the preceding quarter and $4.1 million a year earlier.

The company attributed the higher provision partly to charge-offs associated with loan sales and transfers to held-for-sale status, as well as higher reserves following a review of commercial and multifamily real estate loans. Net charge-offs totaled $89.7 million during the quarter.

Loan sales and capital raise

The $204.3 million in problem loans sold included approximately $179.7 million in commercial and multifamily real estate loans. The sales resulted in a $42.3 million charge-off to the allowance for credit losses.

BCB also transferred cannabis, commercial real estate and commercial and industrial loans to held-for-sale status during the quarter, recording a related $44.2 million charge-off. At September 30, loans held for sale stood at $67.6 million.

The company said its completed equity offering raised $98.0 million before expenses and generated $91.4 million in net proceeds, including the exercise of the underwriter’s option. In its September stock offering pricing announcement, BCB had said it intended to use proceeds for purposes including supporting bank capital in connection with expected problem-loan dispositions.

Loan quality and leadership changes

Non-accrual loans declined to $22.4 million at September 30 from $61.2 million at June 30. Criticized and classified loans fell to $198.9 million from $367.4 million over the same period.

The bank’s leverage capital ratio was 9.0% at September 30, while the parent company’s consolidated ratio was 8.4%. The net interest margin was 3.03% for the third quarter, unchanged from the prior quarter and above 2.88% a year earlier.

BCB also appointed Eleni Willis as chief risk officer and moved Ryan Blake and Sandra Sievewright into new bank leadership roles. The bank said it expects to appoint a new chief audit officer before the end of 2026.

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