BCSB BANCORP INC 
By BALTIMORE, April 29, 2011 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank, FSB, (the "Bank") reported net income of $188,000 for the three month period ended March 31, 2011, which represents the second quarter of its 2011 fiscal year, as compared to a net loss of $639,000 for the three months ended March 31, 2010.
When consideration is given to dividends and discount accretion on preferred shares issued under the U.S. Treasury's TARP Capital Purchase Program, the Company reported a net loss available to common stockholders of $229,000 or ($0.08) per basic and diluted common share for the three months ended March 31, 2011, compared to a net loss available to common stockholders of $795,000 or ($0.27) per basic and diluted common share for the three months ended March 31, 2010. The Company repaid TARP on January 26, 2011 and was required to accelerate accretion of the remaining discount on the preferred stock, thereby reducing net income available to common shareholders by approximately $310,000 during the three months ended March 31, 2011.
Net income for the six months ended March 31, 2011 was $233,000, as compared to net income of $31,000 for the six months ended March 31, 2010.
When consideration is given to dividends and discount accretion on preferred shares issued under the U.S. Treasury's TARP Capital Purchase Program, the net loss available to common stockholders was $340,000 or $(0.11) per basic and diluted common share for the six months ended March 31, 2011, compared to a net loss available to common stockholders of $282,000 or $(0.09) per basic and diluted common share for the six months ended March 31, 2010.
During the three and six months ended March 31, 2011, earnings were favorably impacted by significantly lower loan loss provisions and, to a lesser extent, moderate increases in non-interest income as compared to the same periods in the preceding fiscal year. Also, during the three and six months ended March 31, 2010, the Company recognized $100,000 in credit losses for certain private label collateralized mortgage obligation securities deemed by management to be "Other Than Temporarily Impaired". Earnings during the three and six months ended March 31, 2011 were negatively impacted by higher non-interest expenses and lower net interest income as compared to the same periods in the preceding fiscal year.
President and Chief Executive Officer Joseph J. Bouffard commented "Although the current economic environment remains difficult, we have made strides in achieving certain important objectives. In January of this year, we were able to repay TARP without raising additional capital, which would have been dilutive to our shareholders. The repayment also will save our Company $540,000 in annual preferred dividends. Measured deployment of available liquidity has helped to increase interest rate spread compared with our prior quarter ended December 31, 2010. Nonperforming assets remain manageable overall, decreasing as a percentage of assets compared with the prior quarter. We continue to aggressively pursue alternatives regarding asset quality and foreclosed property on our balance sheet."
This press release contains statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or the Securities and Exchange Commission in its rules, regulations and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors, including but not limited to real estate values, market conditions, the impact of interest rates on financing, local and national economic factors and the matters described in "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended September 30, 2010. Accordingly, actual results may differ from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that results expressed herein will be achieved.
BCSB Bancorp, Inc.
Consolidated Statements of Financial Condition
(Unaudited)
March September
31, 30,
2011 2010
---- ----
(Dollars in
thousands)
ASSETS
Cash equivalents and
time deposits $88,394 $108,999
Investment
Securities,
available for sale 23,382 18,390
Loans Receivable,
net 374,037 388,933
Mortgage-backed
Securities,
available for sale 99,197 65,975
Foreclosed Real
Estate 2,180 --
Premises and
Equipment, net 7,555 7,826
Bank Owned Life
Insurance 15,997 15,655
Other Assets 14,022 14,777
------ ------
Total Assets $624,764 $620,555
======== ========
LIABILITIES
Deposits $543,215 $534,366
Junior Subordinated
Debentures 17,011 17,011
Other Liabilities 14,087 7,788
------ -----
Total Liabilities 574,313 559,165
Total Stockholders'
Equity 50,451 61,390
------ ------
Total Liabilities &
Stockholders'
Equity $624,764 $620,555
======== ========
Consolidated Statements of Operations
(Unaudited)
Three Months ended
March 31,
2011 2010
---- ----
(Dollars in
thousands
except per share
data)
Interest Income 6,665 $7,241
Interest Expense 2,104 2,390
----- -----
Net Interest Income 4,561 4,851
Provision for Loan
Losses -- 2,200
--- -----
Net Interest Income
After Provision for
Loan Losses 4,561 2,651
Total Non-Interest
Income 542 504
Total Non-Interest
Expenses 4,869 4,285
----- -----
Income (loss) Before Tax
Expense (Benefit) 234 (1,130)
Income Tax Expense
(Benefit) 46 (491)
--- ----
Net Income (Loss) 188 (639)
Preferred Stock
dividends and discount
accretion (417) (156)
---- ----
Net Loss available to
common shareholders (229) $(795)
==== =====
Basic Loss Per Common
Share (.08) $(.27)
==== =====
Diluted Loss Per Common
Share (.08) (.27)
==== ====
Six Months ended
March 31,
2011 2010
---- ----
(Dollars in
thousands
except per share
data)
Interest Income 13,470 $14,686
Interest Expense 4,450 4,912
----- -----
Net Interest Income 9,020 9,774
Provision for Loan
Losses 800 2,500
--- -----
Net Interest Income
After Provision for
Loan Losses 8,220 7,274
Total Non-Interest
Income 1,326 1,205
Total Non-Interest
Expenses 9,324 8,581
----- -----
Income (loss) Before Tax
Expense (Benefit) 222 (102)
Income Tax Expense
(Benefit) (11) (133)
--- ----
Net Income (Loss) 233 31
Preferred Stock
dividends and discount
accretion (573) (313)
---- ----
Net Loss available to
common shareholders (340) $(282)
==== =====
Basic Loss Per Common
Share (.11) $(.09)
==== =====
Diluted Loss Per Common
Share (.11) $(.09)
==== =====
Summary of Financial Highlights
(Unaudited)
Three Months ended
March 31,
2011 2010
---- ----
Return on Average Assets
(Annualized) .12% (.43%)
------
Return on Average Equity
(Annualized) 1.49% (4.24%)
-------
Interest Rate Spread 3.21% 3.40%
Net Interest Margin 3.23% 3.49%
Efficiency Ratio 95.41% 80.02%
Ratio of Average Interest
Earnings Assets/Interest
Bearing Liabilities 101.03% 105.41%
Six Months ended
March 31,
2011 2010
---- ----
Return on Average Assets
(Annualized) .08% .01%
Return on Average Equity
(Annualized) .83% .10%
Interest Rate Spread 3.10% 3.49%
Net Interest Margin 3.14% 3.57%
Efficiency Ratio 90.12% 78.16%
Ratio of Average Interest
Earnings Assets/Interest
Bearing Liabilities 102.62% 104.76%
Allowance for Loan Losses
(Unaudited)
Three Months ended
March 31,
2011 2010
---- ----
(Dollars in
thousands)
Allowance at Beginning
of Period $7,170 $4,228
Provision for Loan Loss -- 2,200
Recoveries 25 20
Charge-Offs (2,189) (8)
------ ---
Allowance at End of
Period $5,006 $6,440
====== ======
Allowance for Loan
Losses as a Percentage
of Gross Loans 1.34% 1.62%
Allowance for Loan
Losses as a Percentage
of Nonperforming Loans 54.9% 67.2%
Six Months ended
March 31,
2011 2010
---- ----
(Dollars in
thousands)
Allowance at Beginning
of Period $6,634 $3,927
Provision for Loan Loss 800 2,500
Recoveries 46 62
Charge-Offs (2,474) (49)
------ ---
Allowance at End of
Period $5,006 $6,440
====== ======
Allowance for Loan
Losses as a Percentage
of Gross Loans 1.34% 1.62%
Allowance for Loan
Losses as a Percentage
of Nonperforming Loans 54.9% 67.2%
Non-Performing Assets
(Unaudited)
At
At March September At March
31, 30, 2010 31,
-------- --------- --------
2011 2010
---- ----
(Dollars in thousands)
Nonperforming
Loans: (1)
Commercial $8,465 $12,106 $8,709
Residential
Real Estate 631 656 876
Consumer 21 23 --
--- --- ---
Total
Nonperforming
Loans 9,117 12,785 9,585
Foreclosed
Real Estate 2,180 -- --
Other
Nonperforming
Assets -- -- 5
--- --- ---
Total
Nonperforming
Assets $11,297 $12,785 $9,590
======= ======= ======
Nonperforming
Loans to
Loans
Receivable 2.44% 3.29% 2.38%
Nonperforming
Assets to
Total Assets 1.81% 2.06% 1.60%
(1) Nonperforming status denotes loans on which, in the opinion of management, the collection of additional interest is questionable. Also included in this category at March 31, 2011 are $3.6 million in Troubled Debt Restructurings, $1.0 million of which are not delinquent. Reporting guidance requires disclosure of these loans as non-performing even though they are current in terms of principal and interest payments.
SOURCE BCSB Bancorp, Inc.
