BCB Bancorp (BCBP) said Wednesday it has launched an underwritten public offering of shares. Net proceeds will be used for general corporate purposes and to support capital, including in connection with the planned disposition of potential problem loans, among other purposes, it said.
The company said that the management of its unit BCB Community Bank has identified for sale and started marketing of a portfolio of problem loans.
The bank has received indications of interest from potential buyers covering all of the about $210 million principal balance of the problem loans for sale, it said, adding it expects to complete the sales during Q3.
In addition, the bank said that during Q3, it plans to transfer about $27 million of commercial real estate loans showing credit weakness to held for sale. The bank also said it started marketing for the potential sale of its business lines focused on cannabis-related clients.
The company said it now expects a Q3 provision for credit losses of $112 million to $120 million, and to post a Q3 net loss between $126.2 million and $136.1 million.
BCB Bancorp shares were down nearly 8% in after-hours activity.