BCSB BANCORP INC 
By BALTIMORE, Jan. 30, 2012 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank (the "Bank") reported net income of $462,000 for the three month period ended December 31, 2011, which represents the first quarter of its 2012 fiscal year, as compared to net income of $45,000 for the three months ended December 31, 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, the Company reported net income available to common stockholders of $462,000 or $0.15 per basic and diluted share for the three months ended December 31, 2011, compared to a net loss available to common stockholders of $111,000 or ($0.04) per basic and diluted common share for the three months ended December 31, 2010. The Company repaid TARP on January 26, 2011 without raising additional capital, which would have been dilutive to shareholders.
During the three months ended December 31, 2011, earnings were favorably impacted by lower loan loss provisions and, to a lesser extent, increased net interest income as compared to the corresponding period during the prior fiscal year.
The drop in loan loss provisions during the three months ended December 31, 2011 as compared to the prior year was directly related to a decline in nonperforming assets and loan charge-offs during the period. Foreclosed real estate decreased by $1.7 million, or 57%, from $3.0 million at September 30, 2011 to $1.3 million at December 31, 2011 as the Company was able to dispose of a certain commercial and residential properties. Nonperforming loans also declined during the period from $18.3 million at September 30, 2011 to $17.2 million at December 31, 2011. Total nonperforming assets were $18.5 million at December 31, 2011 versus $21.3 million at September 30, 2011.
The increase in net interest income during the three months ended December 31, 2011 as compared to the three months ended December 31, 2010 was primarily due to higher average balances related to the mortgage-backed securities portfolio combined with a declining cost of funds rate on the deposit portfolio. These increases in net interest income were partially offset by lower interest income from the Company's loan portfolio, which declined by $9.5 million during the three months ended December 31, 2011.
President and Chief Executive Officer Joseph J. Bouffard commented "We continue to make progress in our efforts to resolve asset quality issues, including disposition of foreclosed real estate. Nonperforming assets are down, as are loan charge-offs. Earnings have shown improvement and our interest rate spread has expanded. These are positive trends that we continually work hard to strengthen."
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)
December September
31, 30,
2011 2011
---- ----
(Dollars in
thousands)
ASSETS
Cash equivalents and
time deposits $74,336 $60,108
Investment
Securities,
available for sale 4,816 6,919
Loans Receivable,
net 355,341 364,843
Mortgage-backed
Securities,
available for sale 166,805 150,879
Foreclosed Real
Estate 1,275 2,999
Premises and
Equipment, net 10,336 9,932
Bank Owned Life
Insurance 16,334 16,228
Other Assets 14,394 12,948
------ ------
Total Assets $643,637 $624,856
======== ========
LIABILITIES
Deposits $560,446 $550,014
Junior Subordinated
Debentures 17,011 17,011
Accounts Payable
Trade Date
Securities 7,966 --
----- ---
Other Liabilities 6,060 5,872
Total Liabilities 591,483 572,897
Total Stockholders'
Equity 52,154 51,959
------ ------
Total Liabilities &
Stockholders'
Equity $643,637 $624,856
======== ========
Consolidated Statements of Operations
(Unaudited)
Three Months ended
December 31,
2011 2010
---- ----
(Dollars in thousands
except per share data)
Interest income $6,701 $6,805
Interest expense 1,931 2,346
----- -----
Net interest income 4,770 4,459
Provision for loan losses 300 800
--- ---
Net interest income after
provision for loan losses 4,470 3,659
Total non-interest income 544 784
Total non-interest expenses 4,315 4,455
----- -----
Income (Loss) before tax
expense 699 (12)
Income tax expense (benefit) 237 (57)
--- ---
Net income 462 45
Preferred stock dividends and
discount accretion -- (156)
--- ----
Net income (loss) available
to common shareholders $462 $(111)
==== =====
Basic and diluted earnings
(loss) per common share $.15 $(.04)
==== =====
Summary of Financial Highlights
(Unaudited)
Three Months ended
December 31,
2011 2010
---- ----
Return on average assets
(Annualized) .29% .03%
Return on average equity
(Annualized) 3.55% .29%
Interest rate spread 3.24% 2.99%
Net interest margin 3.26% 3.06%
Efficiency ratio 81.20% 84.97%
Ratio of average interest
earning assets/interest 101.96% 104.21%
bearing liabilities
Allowance for Loan Losses
(Unaudited)
Three Months ended
December 31,
2011 2010
---- ----
(Dollars in thousands)
Allowance at beginning of
period $4,768 $6,634
Provision for loan losses 300 800
Recoveries 12 22
Charge-offs (16) (286)
--- ----
Allowance at end of period $5,064 $7,170
====== ======
Allowance for loan losses
as a percentage of gross 1.40% 1.82%
loans
Allowance for loan losses
to nonperforming loans 29.46% 52.50%
Non-Performing Assets
(Unaudited)
At
At December September At December
31, 30, 31,
------------ ---------- ------------
2011 2011 2010
---- --- ----
(Dollars in thousands)
Nonaccrual Loans:
Commercial $9,070 $9,895 $10,985
Residential Real
Estate (1) 6,968 7,715 2,003
Consumer 20 20 --
--- --- ---
Total Nonaccrual
Loans (2) 16,058 17,630 12,988
Accruing Troubled
Debt
Restructurings 1,133 656 670
----- --- ---
Total
Nonperforming
Loans 17,191 18,286 13,658
Foreclosed Real
Estate 1,275 2,999 186
Total
Nonperforming
Assets $18,466 $21,285 $13,844
======= ======= =======
Nonperforming
Loans to Loans
Receivable 4.84% 5.01% 3.55%
Nonperforming
Assets to Total
Assets 2.87% 3.41% 2.22%
(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 December 31,
2011 are $7.5 million in Troubled Debt Restructurings, all
but $20,000 of which were not delinquent. Reporting guidance
requires disclosure of these loans as nonaccrual until the
loans have performed according to the modified terms for a
sustained period.
SOURCE BCSB Bancorp, Inc.
