BCSB BANCORP INC 
By BALTIMORE, Jan. 21 /PRNewswire-FirstCall/ -- BCSB Bancorp, Inc. (the "Company") (Nasdaq: BCSB), the holding company for Baltimore County Savings Bank, FSB, (the "Bank") reported net income of $670,000 for the three month period ended December 31, 2009, which represents the first quarter of its 2010 fiscal year, as compared to net income of $240,000 for the three months ended December 31, 2008. 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 net income available to common stockholders of $514,000 or $0.18 per basic and diluted share for the three months ended December 31, 2009, compared to net income available to common stockholders of $230,000 or $0.08 per basic and diluted common share for the three months ended December 31, 2008.
During the three months ended December 31, 2009, the Company benefited from increases in net interest income and non-interest income as compared to the corresponding period during the prior fiscal year. These improvements in earnings were partially offset by increases in loan loss provisions and non-interest expenses as compared to the prior fiscal year.
Additional loan loss provisions during the three months ended December 31, 2009 were necessary despite recent declines in nonperforming and classified assets. Current economic conditions, particularly in relation to commercial real estate, warrant corresponding levels of loss reserves. Nonperforming assets were $7.0 million at December 31, 2009 versus $8.3 million at September 30, 2009. Assets classified special mention, substandard and loss, which include nonperforming loans, totaled $15.9 million at December 31, 2009 versus $19.6 million at September 30, 2009.
President and Chief Executive Officer Joseph J. Bouffard commented, "When considering challenges currently faced within the financial services industry, we are encouraged by operating results during the first quarter of our fiscal year and remain very well capitalized. Additionally, our pending sale of four branches is a transaction expected to further improve efficiency, profitability and capital position." Completion of the sale is expected in the second calendar quarter, subject to certain conditions, including regulatory approval.
Stockholders' equity includes accumulated other comprehensive loss (net of taxes). At December 31, 2009, $5.2 million in gross unrealized losses relate to the $21.8 million collateralized mortgage obligation securities portfolio. The Company recorded $500,000 in other-than-temporary impairment losses during the quarter ended June 30, 2009 as a result of these securities. The Company does not intend to sell these securities prior to maturity and, to date, the securities have performed in accordance with their terms. 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, 2009. 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)
December September
31, 30,
2009 2009
---- ----
(Dollars in
thousands)
ASSETS
Cash equivalents and
time deposits $63,343 $40,352
Loans receivable,
net 397,431 401,011
Mortgage-backed
securities,
available for sale 86,689 90,478
Foreclosed real
estate and
repossessed assets 13 639
Premises and
equipment, net 8,278 9,024
Bank owned life
insurance 15,159 15,001
Other assets 14,827 12,933
------ ------
Total assets $585,740 $569,438
======== ========
LIABILITIES
Deposits $503,210 $487,989
Borrowings -- --
Junior subordinated
debentures 17,011 17,011
Other liabilities 5,415 5,305
----- -----
Total liabilities 525,636 510,305
Total stockholders'
equity 60,104 59,133
------ ------
Total liabilities &
stockholders'
equity $585,740 $569,438
======== ========
Consolidated Statements of Operations
(Unaudited)
Three Months ended
December 31,
2009 2008
---- ----
(Dollars in thousands
except per share
data)
Interest income $7,445 $7,674
Interest expense 2,521 3,967
----- -----
Net interest income 4,924 3,707
Provision for loan losses 300 150
--- ---
Net interest income after provision for
loan losses 4,624 3,557
Total non-interest income 700 603
Total non-interest expenses 4,296 3,747
----- -----
Income before tax expense 1,028 413
Income tax expense 358 173
--- ---
Net income 670 240
Preferred stock dividends and discount
accretion (156) (10)
---- ---
Net income available to common
shareholders $514 $230
==== ====
Basic and diluted earnings per common
share $.18 $.08
==== ====
Summary of Financial Highlights
(Unaudited)
Three Months ended
December 31,
2009 2008
---- ----
Return on average assets
(Annualized) .46% 0.17%
Return on average equity
(Annualized) 4.46% 1.80%
Interest rate spread 3.58% 2.70%
Net interest margin 3.66% 2.80%
Efficiency ratio 76.39% 86.96%
Ratio of average interest
earning assets/interest
bearing liabilities 104.09% 103.15%
Allowance for Loan Losses
(Unaudited)
Three Months
ended
December 31,
2009 2008
(Dollars in
thousands)
Allowance at beginning of period $3,927 $2,672
Provision for loan loss 300 150
Recoveries 42 90
Charge-offs (41) (81)
--- ---
Allowance at end of period $4,228 $2,831
====== ======
Allowance for loan losses as a
percentage of gross loans 1.05% 0.71%
Allowance for loan losses to
nonperforming loans 60.38% 224.0%
Non-Performing Assets
(Unaudited)
At December 31, At September 30, At December 31,
2009 2009 2008
-------------- --------------- --------------
(Dollars in thousands)
Nonperforming loans: (1)
Commercial real
estate $5,805 $6,269 $1,070
Residential real
estate 1,161 1,186 194
Other loans 36 235 --
--- --- ---
Total nonperforming
loans 7,002 7,690 1,264
Foreclosed real estate -- 639 --
Other nonperforming assets 13 -- 10
--- --- ---
Total nonperforming
assets $7,015 $8,329 $1,274
====== ====== ======
Nonperforming loans
to loans receivable 1.76% 1.88% 0.32%
Nonperforming assets
to total assets 1.20% 1.46% 0.22%
(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 December 31, 2009 are $3.9 million
in Troubled Debt Restructurings, of which $3.4 million 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 Bankcorp, Inc.
