Regional banks book heavier commercial credit costs

The Tip Desk · November 12, 2026 · 2 min read

BCB Bancorp, CF Bankshares, and Community Trust Bancorp posted larger provisions, charge-offs, or criticized balances in the periods each reported.

BCB Bancorp (BCBP) recognized $89.7 million in net charge-offs in the third quarter of 2026, compared with $16.9 million in the third quarter of 2025, as loan-sale and held-for-sale transactions and higher commercial and multifamily reserves lifted credit costs.

The bank completed loan sales totaling $204.3 million of problem loans, mostly criticized or classified, including commercial and multifamily real estate, commercial and industrial, and construction loans, producing a $42.3 million charge-off to the allowance. It also transferred $70.2 million of cannabis loans, $29.8 million of commercial real estate loans, and $874 thousand of commercial and industrial loans to held-for-sale and recorded a related $44.2 million charge-off based on the lower of cost or market.

A comprehensive review of BCB Bancorp’s commercial and multifamily real estate portfolio increased that segment’s allowance by $24.8 million; $74.7 million of $115.0 million in third-quarter 2026 loan loss provision was attributed to that build-up. The allowance for credit losses on loans rose to $70.3 million, or 3.12 percent of gross loans, at September 30, 2026, from $33.7 million, or 1.24 percent, at December 31, 2025.

CF Bankshares (CFBK) saw total criticized and classified loans increase $28.9 million, or 100.6%, during the nine months ended September 30, 2026, primarily from three downgraded relationships, with special mention at $42.0 million and substandard at $15.7 million. Total past due loans increased $17.8 million to $30.8 million at September 30, 2026, primarily due to a $6.7 million C&I loan and a $5.9 million commercial real estate loan in one relationship.

Community Trust Bancorp (CTBI) recorded a $9.2 million provision for credit losses in the third quarter of 2026, up $6.4 million from the prior quarter and $5.3 million from the year-ago quarter, with net loan charge-offs of $6.6 million, an annualized 0.50% of average loans.