BCB Bancorp Q3 net loss widens on higher credit costs
BCBP•BCB Bancorp reported a $132.5 million third-quarter net loss, or $6.92 per share, as credit costs surged. It raised $98 million in equity and sold $204.3 million in problem loans; net interest margin was 3.03%.
1. Credit costs drive loss
BCB Bancorp reported a third-quarter net loss of $132.5 million, or $6.92 per share, driven in part by a $115 million provision for credit losses and $89.7 million in net charge-offs, mainly tied to problem loan sales and transfers to held-for-sale.
2. Capital and loan sales
The company raised $98 million in equity and sold $204.3 million in problem loans to reduce risk. Its third-quarter net interest margin was 3.03%, up from 2.88% a year earlier.
3. Other expenses
BCB Bancorp established a $59.9 million valuation allowance against deferred tax assets, increasing its tax provision. Higher professional fees and salaries, along with expenses tied to loan sales, lifted non-interest expense by $5.2 million from a year earlier.
