BCSB BANCORP INC 
By BALTIMORE, July 27, 2012 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank (the "Bank"), reported net income of $368,000 for the three months ended June 30, 2012, which represents the third quarter of its 2012 fiscal year, as compared to net income of $344,000 for the three months ended June 30, 2011.
Net income for the nine months ended June 30, 2012 was $1,404,000, as compared to net income of $577,000 for the nine months ended June 30, 2011. 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, net income available to common stockholders was $1,404,000 or $0.45 per basic share and $0.44 per diluted share for the nine months ended June 30, 2012, compared to a net income available to common stockholders of $4,000 or $0.00 per basic and diluted common share for the nine months ended June 30, 2011. 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. No preferred stock dividends have been paid and no discount accretion has been recorded during the nine months ended June 30, 2012. The Company was able to repay TARP without raising additional capital, which would have been dilutive to shareholders.
During the three and nine months ended June 30, 2012, earnings were favorably impacted by gains on sale of repossessed assets, increased commissions from sales of investment products and reductions in non-interest expense as compared to the same periods in the prior fiscal year. Net interest income also increased during the nine months ended June 30, 2012 as compared with the same period in 2011. During the three and nine months ended June 30, 2012, earnings were negatively affected by increased provision for loan losses and higher "Other Than Temporary Impaired" (OTTI) credit losses as compared with 2011. OTTI charges, which are included in the Consolidated Statements of Operations as reductions to non-interest income, totaled $250,000 during the three and nine months ended June 30, 2012 as compared with $100,000 for the three and nine months ended June 30, 2011.
President and Chief Executive Officer Joseph J. Bouffard commented, "Despite a slight increase in the provision for loan losses and a $250,000 OTTI charge during the June 2012 quarter, we were still able to generate increased profitability as compared with the same quarter in 2011. For the first nine months of fiscal year 2012, net income available to common shareholders increased by $1.4 million as compared with the same period in 2011. This improvement is primarily due to strategies successfully implemented to increase net interest income and reduce non-interest expenses. Although pleased with improved operating results, we remain very focused on monitoring asset quality."
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, 2011. 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)
June 30, September
30,
2012 2011
---- ----
(Dollars in thousands)
ASSETS
Cash
equivalents
and
time
deposits $61,340 $60,108
Investment
Securities,
available
for
sale 4,520 6,919
Loans
Receivable,
net 340,497 364,843
Mortgage-
backed
Securities,
available
for
sale 194,552 150,879
Foreclosed
Real
Estate 1,457 2,999
Premises
and
Equipment,
net 10,591 9,932
Bank
Owned
Life
Insurance 16,692 16,228
Other
Assets 12,721 12,948
------ ------
Total
Assets $642,370 $624,856
======== ========
LIABILITIES
Deposits $563,553 $550,014
Junior
Subordinated
Debentures 17,011 17,011
Other
Liabilities 8,430 5,872
----- -----
Total
Liabilities 588,994 572,897
Total
Stockholders'
Equity 53,376 51,959
------ ------
Total
Liabilities
&
Stockholders'
Equity $642,370 $624,856
======== ========
Consolidated Statements of Operations
(Unaudited)
Three Months ended June 30, Nine Months ended June 30,
2012 2011 2012 2011
---- ---- ---- ----
(Dollars in thousands (Dollars in thousands
except per share data) except per share data)
Interest Income $6,392 $6,857 $19,607 $20,327
Interest Expense 1,667 2,063 5,351 6,513
----- ----- ----- -----
Net Interest Income 4,725 4,794 14,256 13,814
Provision for Loan Losses 300 -- 900 800
--- --- --- ---
Net Interest Income After 4,425 4,794 13,356 13,014
Provision for Loan Losses
Total Non-Interest Income 349 394 1,964 1,720
Total Non-Interest Expenses 4,192 4,677 13,170 14,001
----- ----- ------ ------
Income Before Tax 582 511 2,150 733
Expense
Income Tax Expense 214 167 746 156
--- --- --- ---
Net Income 368 344 1,404 577
Preferred Stock dividends and
discount accretion -- -- -- (573)
--- --- --- ----
Net Income available to $368 $344 $1,404 $4
common shareholders
Basic Income Per $.11 $.11 $.45 $.00
Common Share
Diluted Income Per $.11 $.11 $.44 $.00
Common Share
Three Months ended Nine Months ended
June 30, June 30,
--------
2012 2011 2012 2011
---- ---- ---- ----
Return on Average Assets (Annualized) .22% .29% --%
.23%
Return on Average Equity (Annualized) 2.76% 2.68% 3.55% --%
Interest Rate Spread 3.16% 3.26% 3.20% 3.13%
Net Interest Margin 3.18% 3.29% 3.23% 3.17%
Efficiency Ratio 82.62% 90.15% 81.20% 90.13%
Ratio of Average Interest Earnings 102.48% 103.16%
Assets/Interest Bearing Liabilities 102.49% 102.22%
Tangible Book Value
(Unaudited)
At June 30, At September 30, At June 30,
2012 2011 2011
---- ---- ----
(Dollars in thousands except per share data)
Tangible book value per common share:
Total stockholders' equity $53,376 $51,959 $51,455
Less: Intangible assets (40) (51) (57)
--- --- ---
Tangible common equity $53,336 51,908 $51,398
------- ------ -------
Outstanding common shares 3,188,655 3,192,119 3,192,119
Tangible book value per common share (1) $16.73 $16.26 $16.10
====== ====== ======
(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 common 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 Nine Months ended
June 30, June 30,
2012 2011 2012 2011
---- ---- ---- ----
(Dollars in thousands) (Dollars in thousands)
Allowance
at
Beginning
of $5,378 $5,006 $4,768 $6,634
Period
Provision
for
Loan
Losses 300 -- 900 800
Recoveries 18 16 48 62
Charge-
Offs (447) (1,146) (467) (3,620)
---- ------ ---- ------
Allowance
at
End
of $5,249 $3,876 $5,249 $3,876
Period
Allowance
for
Loan 1.52% 1.05% 1.52% 1.05%
Losses
as
a
Percentage
of
Gross
Loans
Allowance
for
Loan 25.3% 33.4% 25.3% 33.4%
Losses
as
a
Percentage
of
Nonperforming
Loans
Non-Performing Assets
(Unaudited)
At June 30, At September
30, At June 30,
2012 2011 2011
---- ---- ----
(Dollars in thousands)
Nonaccrual Loans:
Commercial $12,274 $9,895 $5,532
Residential Real Estate (1) 7,156 7,715 5,955
Consumer -- 20 111
--- --- ---
Total Nonaccrual Loans (2) 19,430 17,630 11,598
Accruing Troubled Debt Restructurings 1,316 656 960
----- --- ---
Total Nonperforming Loans 20,746 18,286 12,558
Foreclosed Real Estate 1,457 2,999 2,841
Total Nonperforming Assets $22,203 $21,285 $15,399
======= ======= =======
Nonperforming Loans to Loans Receivable 6.09% 5.01% 3.45%
Nonperforming Assets to Total Assets 3.46% 3.41% 2.45%
(1) Includes owner occupied
residential properties and investor
owned residential rental 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 June
30, 2012 are $9.0 million in
Troubled Debt Restructurings, $6.5
million of which were current.
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
June 30, 2012, the Company had a
total of $10.3 million in Troubled
Debt Restructurings.
SOURCE BCSB Bancorp, Inc.
