BCB Bancorp falls after stock offering launch, Q3 loss warning
BUZZ-BCB Bancorp falls after stock offering launch, Q3 loss warning ** Community bank BCB Bancorp's BCBP.O shares fall 6.7% to $7.70 post-market as it seeks equity raise and expects to report Q3 loss
** Bayonne, New Jersey-based BCBP launches stock offering without disclosing deal size
** Co intends to use net offering proceeds to maintain liquidity, fund working capital, support capital in connection with the expected disposition of identified potential problem loans, reduce debt, among other uses
** Piper Sandler sole bookrunner
** BCBP says it identified for sale and commenced marketing of a portfolio of certain problem loans, including commercial and multifamily real estate loans, commercial and industrial (C&I) loans and construction loans with aggregate unpaid balances of approx $183.4 mln, $16.7 mln and $9.8 mln, respectively, as of Jun 30
** It anticipates its provisions for credit losses in Q3 in range of $112-$120 mln to result in "substantial net loss for the quarter": sees Q3 net loss of $126.2-$131.1 mln
** With ~18.1 mln shares outstanding, BCBP has about $150 mln market cap
** Stock closed down 2.3% at $8.25 on Weds. Shares down ~26% over the past three months, leaving them up 2% YTD
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))