BCB Bancorp posts Q2 net loss on higher credit costs
BCBP•Outlook
- Company is conducting a comprehensive review of its loan portfolio with independent consultants
- Company has suspended both common and preferred dividends to preserve capital and liquidity
- Company has ceased originating residential mortgage, home equity, and consumer loans due to unattractive returns
Overview
- US community bank reported Q2 net loss, reversing profit from prior periods
- Q2 loss driven by higher credit loss provision, goodwill impairment, and loan sale loss
- Company suspended dividends and plans Delaware reincorporation, annual board elections
Result drivers
- Credit loss provision - Q2 loss driven by $19 mln provision for credit losses, mainly for Business Express and C&I loan portfolios with elevated net charge-offs
- Goodwill impairment - $5.3 mln non-cash goodwill impairment charge due to significant quarterly loss and stock trading at discount to book value
- Loan sale loss - $2.6 mln loss on loan transferred to held-for-sale as part of balance sheet evaluation strategy
Key details and analyst coverage
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