BCSB Bancorp, Inc. Reports Earnings for the Quarter and Year Ended September 30, 2012

26 Oct, 2012, 16:00 ET from BCSB Bancorp, Inc.

BALTIMORE, Oct. 26, 2012 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank, reported net income of $1.8 million for the year ended September 30, 2012, as compared to net income of $116,000 for the year ended September 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, the Company reported net income available to common stockholders of $1.8 million or $0.58 per basic common share and $0.56 per diluted common share for the year ended September 30, 2012, compared to 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. 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 twelve months ended September 30, 2012. The Company was able to repay TARP without raising additional capital, which would have been dilutive to shareholders.

Net income for the three months ended September 30, 2012 was $396,000, or $0.13 per basic common share and $0.12 per diluted common share, as compared to a net loss of $461,000 or ($0.15) per basic and diluted common share for the three months ended September 30, 2011.

During the three and twelve months ended September 30, 2012, earnings were favorably impacted by increases in net interest income, increases in non-interest income and reductions in loan loss provisions as compared to the same periods in the prior fiscal year. Non-interest expenses also decreased during the twelve months ended September 30, 2012 as compared with the same period in 2011 primarily due to successfully implemented expense reduction initiatives. The Company recorded Other Than Temporary Impairment ("OTTI") charges of $120,000 and $370,000 during the three and twelve months ended September 30, 2012, respectively, and charges of $200,000 and $300,000 during the three and twelve months ended September 30, 2011, respectively. These charges relate to certain private label collateralized mortgage obligations in the Company's mortgage-backed securities portfolio. Non-interest expenses increased slightly during the three months ended September 30, 2012 as compared with the same period in the prior year primarily due to $150,000 in provision for losses on premises during the current year. This provision resulted from the consolidation of two branch facilities expected to be completed by calendar year end.

President and Chief Executive Officer Joseph J. Bouffard commented, "We are pleased to report earnings of $1.8 million during our 2012 fiscal year despite ongoing economic challenges. During the year, notable progress has been made toward achieving several important goals. As a result, certain key components of operating results have improved, including increases in net interest income and non-interest income, along with decreases in operating expenses and loan loss provisions. There have also been encouraging trends related to asset quality, with reductions in charge-offs, nonaccrual loans and loan loss provisions. We remain focused on strengthening the Company and enhancing shareholder value."

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)

September 30,

September 30,

2012

2011

(Dollars in thousands)

ASSETS

Cash equivalents and time deposits

$

50,924

$

60,108

Investment Securities, available for sale

4,628

6,919

Loans Receivable, net

335,616

364,843

Mortgage-backed Securities, available for sale

214,004

150,879

Foreclosed Real Estate

1,674

2,999

Premises and Equipment, net

10,288

9,932

Bank Owned Life Insurance

16,869

16,228

Other Assets

11,363

12,948

Total Assets

$

645,366

$

624,856

LIABILITIES

Deposits

$

566,356

$

550,014

Junior Subordinated Debentures

17,011

17,011

Other Liabilities

6,593

5,872

Total Liabilities

589,960

572,897

Total Stockholders' Equity

55,406

51,959

Total Liabilities & Stockholders' Equity

$

645,366

$

624,856

 

 

Consolidated Statements of Operations (Unaudited)

Three Months ended

September 30,

Twelve Months ended

September 30,

2012

2011

2012

2011

(Dollars in thousands

(Dollars in thousands

except per share data)

except per share data)

Interest Income

$

6,464

$

6,608

$

26,071

$

26,935

Interest Expense

1,626

2,037

6,977

8,550

Net Interest Income

4,838

4,571

19,094

18,385

Provision for Loan Losses

300

1,300

1,200

2,100

Net Interest Income After Provision for Loan Losses

4,538

3,271

17,894

16,285

Total Non-Interest Income

486

282

2,450

2,002

Total Non-Interest Expenses

4,454

4,335

17,624

18,336

Income (Loss) Before Tax Expense (Benefit)

570

(782)

2,720

(49)

Income Tax Expense (Benefit)

174

(321)

920

(165)

Net Income (Loss)

396

(461)

1,800

116

Preferred Stock dividends and discount accretion

--

--

--

(573)

Net Income (Loss) available to common shareholders

$

396

$

(461)

$

1,800

$

(457)

Basic Earnings (Loss) Per Common Share

$

0.13

$

(0.15)

$

0.58

$

(0.15)

Diluted Earnings (Loss) Per Common Share

$

0.12

$

 

(0.15)

$

0.56

$

(0.15)

 

Summary of Financial Highlights (Unaudited)

Three Months ended

Twelve Months ended

September 30,

September 30,

2012

2011

2012

2011

Return (Loss) on Average Assets (Annualized)

0.25%

(0.29%)

0.28%

0.02%

Return (Loss) on Average Equity (Annualized)

2.90%

(3.55%)

3.39%

0.20%

Interest Rate Spread

3.21%

3.09%

3.18%

3.10%

Net Interest Margin

3.24%

3.12%

3.21%

3.15%

Efficiency Ratio

83.65%

89.32%

81.80%

89.94%

Ratio of Average Interest Earning Assets/Interest Bearing Liabilities

102.76%

102.69%

102.63%

103.44%

 

Tangible Book Value

(Unaudited)

At September 30,

At June 30,

At September 30,

2012

2012

2011

(Dollars in thousands except per share data)

Tangible book value per common share:

Total stockholders' equity

$

55,406

$

53,376

$

51,959

Less:  Intangible assets

(37)

(40)

(51)

Tangible common equity

$

55,369

53,336

$

51,908

Outstanding common shares

3,188,655

3,188,655

3,192,119

Tangible book value per common share (1)

$

17.36

$

16.73

$

16.26

(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

September 30,

Twelve Months ended

   September 30,

2012

2011

2012

2011

(Dollars in thousands)

(Dollars in thousands)

 

Allowance at Beginning of Period

$

5,249

$

3,876

$

4,768

$

6,634

 

Provision for Loan Losses

300

1,300

1,200

2,100

 

Recoveries

25

18

73

80

 

Charge-Offs

(104)

(426)

(571)

(4,046)

 

Allowance at End of Period

$

5,470

$

4,768

$

5,470

$

4,768

 

Allowance for Loan Losses as a Percentage of Gross

   Loans

1.60%

1.29%

1.60%

1.29%

 

Allowance for Loan Losses as a Percentage of

    Nonperforming Loans

27.64%

26.07%

27.64%

26.07%

 

 

Non-Performing Assets (Unaudited)

At September 30, 2012

At June 30, 2012

At September 30, 2011

(Dollars in thousands)

Nonaccrual Loans:

Commercial 

$

10,545

$

12,274

$

9,895

Residential Real Estate (1)

2,600

7,156

7,715

Consumer

--

--

20

Total Nonaccrual Loans (2)

13,145

19,430

17,630

Accruing Troubled Debt Restructurings

6,647

1,316

656

                    Total Nonperforming Loans

19,792

20,746

18,286

Foreclosed Real Estate

1,674

1,457

2,999

Total Nonperforming Assets

$

21,466

$

22,203

$

21,285

Nonperforming Loans to Loans Receivable

5.90%

6.09%

5.01%

Nonperforming Assets to Total Assets

3.33%

3.46%

3.41%

(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 September 30, 2012 are $2.6 million in Troubled Debt Restructurings. 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 September 30, 2012, the Company had a total of $9.3 million in Troubled Debt Restructurings.

 

SOURCE BCSB Bancorp, Inc.