BCB Bancorp in Bayonne, N.J., has agreed to sell several portfolios of problem loans — most rated criticized or classified under the bank’s internal risk rating system — continuing the aggressive credit cleanup under new CEO Thomas O’Brien.
BCB said it recently signed agreements with six separate buyer to sell loans with an aggregate unpaid principal balance of about $205.3 million as of June 30. The portfolios break down into $180.7 million in commercial and multifamily real estate loans, $14.8 million in C&I loans, and $9.8 million in construction loans.
The Bank expects to record an estimated pre-tax loss of $43.3 million on the sales in the third quarter. Five of the six transactions have already closed, with the final one set to close by Sept. 30; each agreement was structured independently, with no cross-conditionality between deals.
Hilltop Securities was the financial advisor; Arnold & Porter Kaye Scholer was legal counsel.
BCB recently sold common stock to bolster capital levels.