BCB Bancorp kicks off $75 million capital raise amid overhaul

• Piper Sandler is acting as sole book-running manager for the stock offering.
• The proceeds will be used for general purposes, including the offloading of potential problem loans and cutting debt, the bank said.

Sept. 16 (Reuters) - BCB Bancorp BCBP.O launched a $75 million stock offering on Wednesday, as CEO Thomas O’Brien pushes to overhaul the U.S. community bank and improve its asset quality.

Shares of the Bayonne, New Jersey-based bank were down 4% in extended trading, paring some losses after falling 21% earlier.

• The offering comes as BCB Bancorp looks to sell roughly $210 million of problem loans to improve its asset quality profile.
• The portfolio being sold consists of loans in the commercial and multifamily real estate, commercial and industrial, and construction segments.
• BCB Bancorp projects a net loss between $126.2 million to $136.1 million in the third quarter, expecting bad loan provisions to swell.
• The bank has also commenced marketing the potential sale of business lines focused on cannabis-related customers.
• O’Brien, who took the bank's helm in June, said the last three months had been spent reviewing its legacy credit challenges and developing plans to address them.
• In June, BCB Bancorp suspended quarterly cash dividends to preserve capital while it conducted a deep evaluation of its portfolio.