Strategic Insights into Banking & Fintech

BCB in N.J. to record writedown tied to cannabis relationship

BCB Bancorp in Bayonne, N.J., will take some credit-related hits in the first quarter.

The company disclosed in a regulatory filing that it will take a $15.1 million pretax writedown tied to an “isolated” cannabis-related real estate owned property. After charging off $12.7 million in the third quarter tied to the relationships, BCB determined that another writedown was warranted.

The company will also record $16.4 million in separate net chargeoffs largely tied to its C&I loan portfolio, including a $6.4 million loan. About $1.4 million of the net chargeoffs were attributable to the bank’s “Business Express” program.

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