BCSB BANCORP INC 
By BALTIMORE, April 25, 2013 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank (the "Bank") reported net income of $303,000, or $0.09 per basic and diluted share for the three month period ended March 31, 2013, which represents the second quarter of its 2013 fiscal year, as compared to net income of $574,000, or $0.19 per basic share and $0.18 per diluted share for the three months ended March 31, 2012. The Company also disposed of a private label CMO security in March 2013. A loss on sale of $588,000 related to the security was more than offset by gains on sales of other securities in the Company's investment portfolio during the quarter.
Net income for the six months ended March 31, 2013 was $942,000, or $0.30 per basic share and $0.29 per diluted share, as compared to net income of $1,036,000, or $0.34 per basic share and $0.33 per diluted share for the six months ended March 31, 2012.
During the three and six months ended March 31, 2013, earnings were favorably impacted by reductions in non-interest expense as compared to the same periods in the prior fiscal year and, during the six months ended March 31, 2013, earnings were favorably impacted by an increase in net interest income. Earnings for the three and six months ended March 31, 2013 were negatively impacted by decreases in non-interest income and increases in provision for loan losses, as compared to the same periods in the prior fiscal year. Reductions in non-interest income during fiscal year 2013 were primarily due to gain on sales of foreclosed real estate recognized during the prior fiscal year. Increases in provision for loan losses were necessary to address elevated charge-offs during fiscal year 2013 as certain problem loans were foreclosed upon and transferred to Foreclosed Real Estate.
President and Chief Executive Officer Joseph J. Bouffard commented, "Although somewhat disappointed with net earnings, we were able to make notable progress with other important initiatives during the period. Nonperforming assets have declined in each of the past two consecutive quarters and have dropped by nearly $3.5 million during the first six months of fiscal year 2013. As mentioned above, we disposed of a private label CMO security, eliminating exposure to future OTTI charges related to that instrument. And on April 19, 2013 we were able to repurchase from the U.S. Treasury a warrant to purchase more than 183,000 shares of the Company's common stock issued in connection with the TARP Capital Purchase Program. We have now completely exited TARP without having to raise capital, which would have diluted our shareholders."
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, 2012. 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 31, September
30,
2013 2012
---- ----
(Dollars in thousands)
ASSETS
Cash equivalents and
time deposits $45,017 $50,924
Investment Securities,
available for sale 4,757 4,628
Loans Receivable, net 316,315 335,616
Mortgage-backed
Securities, available
for sale 234,268 213,563
Foreclosed Real Estate 3,659 1,674
Premises and Equipment,
net 10,229 10,288
Bank Owned Life
Insurance 17,163 16,869
Other Assets 10,887 11,537
------ ------
Total Assets $642,295 $645,099
======== ========
LIABILITIES
Deposits $561,012 $566,356
Junior Subordinated
Debentures 17,011 17,011
Other Liabilities 8,546 6,593
----- -----
Total Liabilities 586,569 589,960
Total Stockholders'
Equity 55,726 55,139
------ ------
Total Liabilities &
Stockholders' Equity $642,295 $645,099
======== ========
Consolidated Statements of Operations
(Unaudited)
Three Months ended March
31, Six Months ended March 31,
2013 2012 2013 2012
---- ---- ---- ----
(Dollars in thousands (Dollars in thousands
except per share data) except per share data)
Interest
Income $6,100 $6,514 $12,698 $13,215
Interest Expense 1,341 1,753 2,825 3,684
----- ----- ----- -----
Net Interest Income 4,759 4,761 9,873 9,531
Provision for Loan
Losses 450 300 950 600
--- --- --- ---
Net Interest Income
After Provision for
Loan Losses 4,309 4,461 8,923 8,931
Total Non-Interest
Income 667 1,071 1,332 1,615
Total Non-Interest
Expenses 4,538 4,663 8,805 8,978
----- ----- ----- -----
Income Before Income
Tax Expense 438 869 1,450 1,568
Income Tax Expense 135 295 508 532
--- --- --- ---
Net Income $303 $574 $942 $1,036
==== ==== ==== ======
Basic Net
Income
Per
Common
Share $0.09 $0.19 $0.30 $0.34
===== ===== ===== =====
Diluted
Net
Income
Per
Common
Share $0.09 $0.18 $0.29 $0.33
===== ===== ===== =====
Three Months ended Six Months ended
March 31, March 31,
2013 2012 2013 2012
---- ---- ---- ----
Return on Average Assets (Annualized) 0.19% 0.36% 0.29% 0.33%
Return on Average Equity (Annualized) 2.20% 4.36% 3.37% 3.96%
Interest Rate Spread 3.13% 3.21% 3.24% 3.22%
Net Interest Margin 3.16% 3.23% 3.28% 3.25%
Efficiency Ratio 83.62% 79.97% 78.57% 80.55%
Ratio of Average Interest Earning Assets/Interest Bearing Liabilities 104.01% 102.01% 103.70% 101.99%
Tangible Book Value
(Unaudited)
At March 31, At September 30, At March 31,
2013 2012 2012
---- ---- ----
(Dollars in thousands except per share data)
Tangible book value per common share:
Total stockholders' equity $55,726 $55,139 $53,164
Less: Intangible assets (30) (37) (43)
--- --- ---
Tangible common equity $55,696 55,102 $53,121
------- ------ -------
Outstanding common shares 3,189,668 3,188,655 3,188,655
Tangible book value per common share (1) $17.46 $17.28 $16.66
====== ====== ======
(1) Tangible book value provides a
measure of tangible equity on a
per share basis. It is
determined by methods other than
in accordance with Accounting
Principles Generally Accepted in
the United States ("GAAP") and,
as such, is considered to be a
non-GAAP financial measure.
Management believes the
presentation of Tangible book
value per share is meaningful
supplemental information for
shareholders. We calculate
Tangible book value per common
share by dividing tangible
common equity by common shares
outstanding, as of period end.
Allowance for Loan Losses
(Unaudited)
Three Months ended Six Months ended
March 31, March 31,
2013 2012 2013 2012
---- ---- ---- ----
(Dollars in thousands) (Dollars in thousands)
Allowance at Beginning of Period $5,488 $5,064 $5,470 $4,768
Provision for Loan Losses 450 300 950 600
Recoveries 16 18 39 29
Charge-Offs (411) (4) (916) (19)
---- --- ---- ---
Allowance at End of Period $5,543 $5,378 $5,543 $5,378
====== ====== ====== ======
Allowance for Loan Losses as a Percentage of Gross
Loans 1.72% 1.52% 1.72% 1.52%
Allowance for Loan Losses as a Percentage of
Nonperforming Loans 37.4% 25.4% 37.4% 25.4%
Non-Performing Assets
(Unaudited)
At March 31, At September 30, At March 31,
2013 2012 2012
---- ---- ----
(Dollars in thousands)
Nonaccrual Loans:
Commercial $4,449 $10,545 $12,446
Residential Real Estate (1) 4,226 2,600 7,307
Consumer -- -- --
--- --- ---
Total Nonaccrual Loans (2) 8,675 13,145 19,753
Accruing Troubled Debt Restructurings 6,162 6,647 1,418
----- ----- -----
Total Nonperforming Loans 14,837 19,792 21,171
Nonperforming Foreclosed Real Estate (3) 3,151 1,674 673
Total Nonperforming Assets $17,988 $21,466 $21,844
======= ======= =======
Nonperforming Loans to Loans Receivable 4.69% 5.90% 6.07%
Nonperforming Assets to Total Assets 2.80% 3.33% 3.42%
(1) Includes residential owner occupied
properties and residential rental
investor properties.
(2) Nonaccrual 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, 2013 is $109,000 in Troubled
Debt Restructurings. Reporting
guidance requires disclosure of
these loans as nonaccrual until the
loans have performed according to
the modified terms for a sustained
period. As of March 31, 2013, the
Company had a total of $6.3 million
in Troubled Debt Restructurings, all
of which are performing according to
their restructured terms.
(3) Regulatory guidance provides that
residential rental foreclosed real
estate with leases in place and
demonstrated cash flow generating a
reasonable rate of return generally
is not considered to be a classified
asset. As of March 31, 2013, the
Company has identified $508,000 in
foreclosed real estate meeting these
criteria. Accordingly, this amount
has been excluded from nonperforming
assets.
SOURCE BCSB Bancorp, Inc.
