BCSB BANCORP INC 
By BALTIMORE, Oct. 28, 2011 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank, reported net income of $116,000 for the year ended September 30, 2011, as compared to net income of $1,207,000 for the year ended September 30, 2010. For comparison purposes, when consideration is given to dividends and discount accretion on preferred shares issued under the U.S. Treasury's TARP Capital Purchase Program (which the Company redeemed in January 2011), the Company reported a net loss available to common stockholders of $457,000 or ($0.15) per basic and diluted common share for the year ended September 30, 2011, compared to net income available to common stockholders of $582,000 or $0.20 per basic common share and $.19 per diluted common share for the year ended September 30, 2010. When the Company repaid TARP, it 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 year ended September 30, 2011.
Net loss for the three months ended September 30, 2011 was $461,000, as compared to net income of $569,000 for the three months ended September 30, 2010. When consideration is given to dividends and discount accretion on preferred shares issued under the U.S. Treasury's TARP Capital Purchase Program, net loss available to common stockholders was $461,000 or ($0.15) per basic and diluted common share for the three months ended September 30, 2011, compared to net income available to common stockholders of $412,000 or $0.14 per basic and diluted common share for the three months ended September 30, 2010.
Earnings during the three and twelve months ended September 30, 2011 declined in comparison to the same periods of the prior fiscal year primarily due to declines in net interest income of $85,000 and $683,000, increased provisions for loss on foreclosed real estate of $41,000 and $334,000 and higher "Other Than Temporarily Impaired" (OTTI) credit losses of $100,000 in both periods, respectively. Also contributing to the decline in earnings were increased costs associated with impaired loans and foreclosure activities. Provisions for losses on loans during the three months ended September 30, 2011 increased by $1,000,000 in comparison with the same period in 2010, but decreased by $1,000,000 during the fiscal year ended September 30, 2011 as compared with the prior fiscal year.
Higher loan loss provisions were necessary during the three months ended September 30, 2011 to address increases in troubled assets, particularly in relation to two commercial loan relationships, one of which represented by $2.7 million in land development and the other represented by $1.5 million in residential rental properties. Nonperforming loans were $17.6 million at September 30, 2011 versus $11.6 million at June 30, 2011.
President and Chief Executive Officer Joseph J. Bouffard commented "Although we were able to report a slight profit for fiscal year 2011, operating results for the most recent quarter ended September 30, 2011 were disappointing. Challenging economic conditions continue to persist, resulting in a difficult environment for some of our borrowers. We continue to aggressively pursue solutions to problem asset issues and will be proactive in establishing what are believed to be appropriate reserve levels."
As noted above, OTTI charges have been recorded on certain of the Company's CMO securities. As of September 30, 2011, the market value of these CMO securities totaled $9.1 million, which reflects $2.9 million in gross unrealized losses. If in the future it is determined that further declines in market values or credit losses with respect to these or any other securities are other than temporary, the Company would be required to recognize additional losses in its consolidated statements of operations.
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)
September September
30, 30,
2011 2010
---- ----
(Dollars in
thousands)
ASSETS
Cash equivalents and
time deposits $60,108 $108,999
Investment
Securities,
available for sale 6,819 18,390
Loans Receivable,
net 364,843 388,933
Mortgage-backed
Securities,
available for sale 150,879 65,975
Foreclosed Real
Estate 2,999 --
Premises and
Equipment, net 9,932 7,826
Bank Owned Life
Insurance 16,228 15,655
Other Assets 13,048 14,777
------ ------
Total Assets $624,856 $620,555
======== ========
LIABILITIES
Deposits $550,014 $534,366
Junior Subordinated
Debentures 17,011 17,011
Other Liabilities 5,872 7,788
----- -----
Total Liabilities 572,897 559,165
Total Stockholders'
Equity 51,959 61,390
------ ------
Total Liabilities &
Stockholders'
Equity $624,856 $620,555
======== ========
Consolidated Statements of Operations
(Unaudited)
Three Months ended Twelve Months ended
September 30, September 30,
2011 2010 2011 2010
---- ---- ---- ----
(Dollars in (Dollars in
thousands thousands
except per share except per share
data) data)
Interest Income $6,608 $7,113 $26,935 $28,862
Interest Expense 2,037 2,457 8,550 9,794
----- ----- ----- -----
Net Interest
Income 4,571 4,656 18,385 19,068
Provision for
Loan Losses 1,300 300 2,100 3,100
----- --- ----- -----
Net Interest
Income After
Provision for
Loan Losses 3,271 4,356 16,285 15,968
Total Non-
Interest Income 282 639 2,002 2,406
Total Non-
Interest
Expenses 4,335 4,134 18,336 16,682
----- ----- ------ ------
(Loss) Income
Before Tax
Expense (782) 861 (49) 1,692
Income Tax
(Benefit)
Expense (321) 292 (165) 485
---- --- ---- ---
Net (Loss)
Income (461) 569 116 1,207
Preferred Stock
dividends and
discount
accretion -- (157) (573) (625)
--- ---- ---- ----
Net (Loss)
Income
available to
common
shareholders $(461) $412 $(457) $582
===== ==== ===== ====
Basic (Loss)
Earnings Per
Common Share $(.15) $.14 $(.15) $.20
===== ==== ===== ====
Diluted (Loss)
Earnings Per
Common Share $(.15) $.14 $(.15) $.19
===== ==== ===== ====
Summary of Financial Highlights
(Unaudited)
Three Months ended Twelve Months ended
September 30, September 30,
2011 2010 2011 2010
---- ---- ---- ----
Return
(Loss)
on
Average
Assets
(Annualized) (.29%) .37% .02% .20%
Return
(Loss)
on
Average
Equity
(Annualized) (3.55%) 3.71% .20% 1.99%
Interest
Rate
Spread 3.09% 3.15% 3.10% 3.30%
Net
Interest
Margin 3.12% 3.22% 3.15% 3.39%
Efficiency
Ratio 89.32% 78.05% 89.94% 77.68%
Ratio
of
Average
Interest
Earning
Assets/
Interest
Bearing
Liabilities 102.69% 104.31% 103.44% 105.14%
Allowance for Loan Losses
(Unaudited)
Three Months ended Twelve Months ended
September 30, September 30,
2011 2010 2011 2010
(Dollars in (Dollars in
thousands) thousands)
Allowance
at
Beginning
of
Period $3,876 $6,287 $6,634 $3,927
Provision
for
Loan
Loss 1,300 300 2,100 3,100
Recoveries 18 74 80 166
Charge-
Offs (426) (27) (4,046) (559)
---- --- ------ ----
Allowance
at
End
of
Period $4,768 $6,634 $4,768 $6,634
====== ====== ====== ======
Allowance
for
Loan
Losses
as a
Percentage
of
Gross
Loans 1.29% 1.68% 1.29% 1.68%
Allowance
for
Loan
Losses
as a
Percentage
of
Nonperforming
Loans 27.04% 51.89% 27.04% 51.89%
Non-Performing Assets
(Unaudited)
At At
September At June September
30, 30, 30,
---------- -------- ----------
2011 2011 2010
---- ---- ----
(Dollars in thousands)
Nonperforming Loans: (1)
Commercial $11,193 $5,623 $10,442
Residential Real Estate (2) 6,417 5,955 2,320
Consumer 20 20 23
--- --- ---
Total Nonperforming Loans 17,630 11,598 12,785
Foreclosed Real Estate 2,999 2,841 --
Total Nonperforming Assets $20,629 $14,439 $12,785
======= ======= =======
Nonperforming Loans to Loans Receivable 4.83% 3.18% 3.29%
Nonperforming Assets to Total Assets 3.30% 2.29% 2.06%
(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 September 30, 2011 are $8.7
million in Troubled Debt Restructurings,
$8.6 million of which were not delinquent.
Reporting guidance requires disclosure of
these loans as nonperforming even though
they are current in terms of principal and
interest payments.
(2) Includes residential owner occupied
properties and residential rental investor
properties.
SOURCE BCSB Bancorp, Inc.
