BCB Bancorp Q3 net loss widens on higher credit costs

Overview

• U.S. community bank reported Q3 net loss as credit costs surged on problem loan sales

• Company raised $98 mln in equity and sold $204.3 mln in problem loans to reduce risk

• Net interest margin for Q3 was 3.03%, up from 2.88% a year earlier

Outlook

• Company did not provide specific financial guidance for the current or future periods in the press release

Result Drivers

• CREDIT COSTS - Q3 results driven by $115 mln provision for credit losses and $89.7 mln in net charge-offs, mainly from problem loan sales and transfers to held-for-sale

• DEFERRED TAX VALUATION - Co established $59.9 mln valuation allowance against deferred tax assets, increasing tax provision and contributing to net loss

• NON-INTEREST EXPENSES - Higher professional fees and salaries, plus expenses tied to loan sales, raised non-interest expense by $5.2 mln from a year ago

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for BCB Bancorp Inc is $9.00, about 5% above its October 28 closing price of $8.57

Reuters Recommended Reads

• Oct 26 - Blue Ridge Bankshares Q3 net loss widens on credit loss provisions

• Oct 27 - National Bank Holdings posts Q3 loss on credit provisions

• Oct 27 - Summit State Bank posts Q3 net loss on higher credit loss provision

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)