BCB Bancorp issues new preferred stock in private placement

Published 19/03/2025, 21:24
BCB Bancorp issues new preferred stock in private placement

In a recent private placement, BCB Bancorp Inc. (NASDAQ:BCBP), a federally chartered savings institution with a market capitalization of $173.5 million, issued 52 shares of its Series K Noncumulative Perpetual Preferred Stock, resulting in gross proceeds of $520,000. The transaction took place on Monday, March 15, 2025, and was disclosed in a filing with the Securities and Exchange Commission (SEC) on Wednesday, March 19, 2025. According to InvestingPro, the bank maintains a strong dividend track record, having paid dividends consistently for 20 consecutive years, with a current yield of 6.5%.

The New Jersey-based banking company sold the shares at a price of $10,000 per share, which represents 2.0% of the gross proceeds of the company’s total issued and outstanding Noncumulative Perpetual Preferred Stock. This issuance marks the second round of shares in the company’s ongoing private placement of Series K Preferred Stock.

BCB Bancorp relied on the exemption from registration provided under SEC Rule 506 of Regulation D, which allows companies to raise capital through private sales without a public offering.

The company’s executive vice president and chief operating officer, Ryan Blake, signed off on the SEC filing.

This financial move by BCB Bancorp Inc. is based on a press release statement and provides a glimpse into the company’s capital-raising activities. It is important to note that the information is derived from the company’s SEC filing and does not include any marketing language or subjective assessment.

In other recent news, BCB Bancorp reported financial adjustments and strategic initiatives that have drawn attention from analysts and investors. DA Davidson analyst Manuel Navas revised the price target for BCB Bancorp to $11.00, down from $14.00, maintaining a Neutral stance. Navas attributed this adjustment to the bank’s pre-provision net revenue falling short of expectations due to weaker net interest income and increased operating expenses. BCB Bancorp’s loans saw an 11% decline quarter-over-quarter, while deposits grew by 4%, resulting in a 5% decrease in the loan-to-deposit ratio. The bank is focusing on improving its profitability and capital structure, with a tangible common equity ratio of 8.2%, and views 2025 as a transition year to strengthen its risk management framework.

Additionally, BCB Bancorp announced the private sale of its Series K Noncumulative Perpetual Preferred Stock, raising $4.97 million in gross proceeds. The shares were sold at $10,000 each, representing 20.1% of the total issued and outstanding Noncumulative Perpetual Preferred Stock. This capital raise is part of BCB Bancorp’s strategy to manage its financial resources effectively, although specific plans for the funds have not been disclosed. The issuance of preferred stock is seen as a move to diversify the company’s financial instruments and potentially enhance its financial position.

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