| Item 2.06. |
Material Impairments. |
On January 13, 2026, the Board of Directors and management of BCB Bancorp, Inc. (the “Company”) determined that a write down of $15.1 million (pre-tax) was required with respect to an isolated cannabis-related real estate owned (REO) property. As previously disclosed in the first quarter of 2025, BCB Community Bank (the “Bank”), the Company’s wholly owned subsidiary, established a specific reserve for this relationship. During the third quarter of 2025, this loan was transferred to the REO category, resulting in a previously disclosed charge-off of $12.7 million and the elimination of the previously established reserve. Based on new information, the Company determined that this additional write-down was warranted, which will be reflected in the Company’s fourth quarter 2025 financial statements.
The financial statements for the fourth quarter of 2025 will also reflect $16.4 million in additional net charge-offs, primarily related to the Bank’s C&I loan portfolio. The largest of these charge-offs was a $6.4 million C&I loan. Approximately $1.4 million of these net charge-offs were attributable to the Bank’s “Business Express” loans.
The Bank’s financial position provides sufficient capital to absorb these losses without any material effect on the Bank’s operations. The Company estimates that no portion of these charge-offs will result in any future cash expenditures but will continue to review this estimate as the Company moves forward.
The Company plans to report complete fourth quarter 2025 financial results on January 30, 2026, at 8:30 a.m. Eastern Standard Time.
Forward-Looking Statements
This 8-K, like many written and oral communications presented by the Company, and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.
The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the potential impact of another possible Federal budget stalemate in Congress in 2026, global tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause increased loan delinquencies, a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: our ability to manage liquidity and capital in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages, the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States
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