BCSB BANCORP INC 
By BALTIMORE, April 27, 2012 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank (the "Bank") reported net income of $574,000 for the three month period ended March 31, 2012, which represents the second quarter of its 2012 fiscal year, as compared to net income of $188,000 for the three months ended March 31, 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, the Company reported net income available to common stockholders of $574,000 or $0.19 per basic share and $0.18 per diluted share for the three months ended March 31, 2012, compared to 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. 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. The Company was able to repay TARP without raising additional capital, which would have been dilutive to shareholders.
Net income for the six months ended March 31, 2012 was $1,036,000, as compared to net income of $233,000 for the six months ended March 31, 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 $1,036,000 or $0.34 per basic share and $0.33 per diluted share for the six months ended March 31, 2012, compared to a net loss available to common stockholders of $340,000 or ($0.11) per basic and diluted common share for the six months ended March 31, 2011.
During the three and six months ended March 31, 2012, earnings were favorably impacted by increases in net interest income, increases in non-interest income and reductions in non-interest expense. Provision for loan losses increased by $300,000 during the three months ended March 31, 2012 and decreased by $200,000 during the six months ended March 31, 2012, as compared to the same periods in the prior fiscal year.
President and Chief Executive Officer Joseph J. Bouffard commented, "We are encouraged by the trend of increased earnings. Core areas of operating results have improved, including net interest income and operating expenses. We remain focused on resolving asset quality issues despite stubbornly problematic economic conditions. During the most recent quarter ended March 31, 2012, we successfully disposed of foreclosed real estate while recognizing approximately $345,000 in gains from sale of those properties."
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)
March 31, September
30,
2012 2011
---- ----
(Dollars in thousands)
ASSETS
Cash
equivalents
and
time
deposits $59,420 $60,108
Investment
Securities,
available
for
sale 4,344 6,919
Loans
Receivable,
net 349,067 364,843
Mortgage-
backed
Securities,
available
for
sale 185,420 150,879
Foreclosed
Real
Estate 673 2,999
Premises
and
Equipment,
net 10,562 9,932
Bank
Owned
Life
Insurance 16,587 16,228
Other
Assets 13,318 12,948
------ ------
Total
Assets $639,391 $624,856
======== ========
LIABILITIES
Deposits $561,832 $550,014
Junior
Subordinated
Debentures 17,011 17,011
Other
Liabilities 7,384 5,872
----- -----
Total
Liabilities 586,227 572,897
Total
Stockholders'
Equity 53,164 51,959
------ ------
Total
Liabilities
&
Stockholders'
Equity $639,391 $624,856
======== ========
Consolidated Statements of Operations
(Unaudited)
Three Months ended March 31, Six Months ended March 31,
2012 2011 2012 2011
---- ---- ---- ----
(Dollars in thousands (Dollars in thousands
except per share data) except per share data)
Interest Income $6,514 $6,665 $13,215 $13,470
Interest Expense 1,753 2,104 3,684 4,450
----- ----- ----- -----
Net Interest Income 4,761 4,561 9,531 9,020
Provision for Loan Losses 300 -- 600 800
--- --- --- ---
Net Interest Income After
Provision for Loan Losses 4,461 4,561 8,931 8,220
Total Non-Interest Income 1,071 542 1,615 1,326
Total Non-Interest
Expenses 4,663 4,869 8,978 9,324
----- ----- ----- -----
Income Before Tax Expense
(Benefit) 869 234 1,568 222
Income Tax Expense
(Benefit) 295 46 532 (11)
--- --- --- ---
Net Income 574 188 1,036 233
Preferred Stock dividends
and discount accretion -- (417) -- (573)
--- ---- --- ----
Net Income (Loss)
available to common
shareholders $574 $(229) $1,036 $(340)
==== ===== ====== =====
Basic Income (Loss) Per
Common Share $.19 $(.08) $.34 $(.11)
==== ===== ==== =====
Diluted Income (Loss) Per
Common Share $.18 $(.08) $.33 $(.11)
==== ===== ==== =====
Three Months ended Six Months ended
March 31, March 31,
2012 2011 2012 2011
---- ---- ---- ----
Return on Average
Assets
(Annualized) .36% .12% .33% .08%
Return on Average
Equity
(Annualized) 4.36% 1.49% 3.96% .83%
Interest Rate
Spread 3.21% 3.21% 3.22% 3.10%
Net Interest
Margin 3.23% 3.23% 3.25% 3.14%
Efficiency Ratio 79.97% 95.41% 80.55% 90.12%
Ratio of Average
Interest
Earnings Assets/
Interest 102.01% 101.03% 101.99% 102.62%
Bearing
Liabilities
Tangible Book Value
(Unaudited)
At March 31, At September
30, At March 31,
2012 2011 2011
---- ---- ----
(Dollars in thousands except per share data)
Tangible book value per common
share:
Total stockholders' equity $53,164 $51,959 $50,451
Less: Intangible assets (43) (51) (63)
--- --- ---
Tangible common equity $53,121 51,908 $50,388
------- ------ -------
Outstanding common shares 3,188,655 3,192,119 3,192,119
Tangible book value per common
share (1) $16.66 $16.26 $15.78
====== ====== ======
(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,
2012 2011 2012 2011
---- ---- ---- ----
(Dollars in thousands) (Dollars in thousands)
Allowance at
Beginning of Period $5,064 $7,170 $4,768 $6,634
Provision for Loan
Losses 300 -- 600 800
Recoveries 18 25 29 46
Charge-Offs (4) (2,189) (19) (2,474)
--- ------ --- ------
Allowance at End of
Period $5,378 $5,006 $5,378 $5,006
====== ====== ====== ======
Allowance for Loan
Losses as a
Percentage of Gross
Loans 1.52% 1.32% 1.52% 1.32%
Allowance for Loan
Losses as a
Percentage of
Nonperforming Loans 25.4% 51.1% 25.4% 51.1%
Non-Performing Assets
(Unaudited)
At March 31, At September 30, At March 31,
2012 2011 2011
---- ---- ----
(Dollars in thousands)
Nonaccrual Loans:
Commercial $12,446 $9,895 $5,844
Residential Real Estate (1) 7,307 7,715 3,252
Consumer -- 20 21
--- --- ---
Total Nonaccrual Loans (2) 19,753 17,630 9,117
Accruing Troubled Debt Restructurings 1,418 656 670
----- --- ---
Total Nonperforming Loans 21,171 18,286 9,787
Foreclosed Real Estate 673 2,999 2,180
Total Nonperforming Assets $21,844 $21,285 $11,967
======= ======= =======
Nonperforming Loans to Loans Receivable 6.07% 5.01% 2.62%
Nonperforming Assets to Total Assets 3.42% 3.41% 1.92%
(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 March 31, 2012 are $9.7 million in Troubled Debt Restructurings, $8.3 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 March 31, 2012, the Company had a total of $11.1 million in Troubled Debt Restructurings.
SOURCE BCSB Bancorp, Inc.
