2014

BCSB Bancorp, Inc. Reports Results For The First Quarter Ended December 31, 2012

BALTIMORE, Jan. 25, 2013 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank (the "Bank") reported net income of $639,000 or $0.21 per basic share and $.20 per diluted share for the three months ended December 31, 2012, which represents the first quarter of its 2013 fiscal year. This compares to net income of $462,000 or $0.15 per basic and diluted share for the three months ended December 31, 2011.

During the three months ended December 31, 2012, earnings were favorably impacted primarily by higher net interest income and increased non-interest income as compared to the corresponding period during the prior fiscal year. Earnings were negatively affected by increased provision for loan losses as compared with the three months ended December 31, 2011.  

The increase in net interest income during the three months ended December 31, 2012 as compared to the three months ended December 31, 2011 was primarily due to declining cost of funds on the deposit portfolio, partially offset by lower interest income from the Company's loan portfolio, which declined by approximately $26 million during the twelve months ended December 31, 2012.  

Non-interest income during the three months ended December 31, 2012 improved in comparison with the three months ended December 31, 2011 partly due to prepayment fees received as certain loans paid off prior to scheduled maturity. The Company also experienced increased commission income from sales of investment products during the current period.  

The increase in loan loss provisions during the three months ended December 31, 2012 as compared to the prior year was directly related to declines is estimated realizable values of certain problem loans, primarily investor rental properties. The Company also experienced $0.5 million of net charge-offs during the three months ended December 31, 2012, primarily due to the transfer of a $1.5 million land acquisition and development loan to Foreclosed Real Estate, for which specific loan loss reserves had already been established. Specifically allocated loan loss reserves are charged-off as properties are foreclosed upon.

President and Chief Executive Officer Joseph J. Bouffard commented "Earnings continued to show improvement during the quarter ended December 31, 2012, as was also the case during our most recent fiscal year ended September 30, 2012. Our interest rate spread has improved and operating expenses remain manageable. Notable declines in nonperforming loans and Troubled Debt Restructurings have been achieved as we push hard to resolve problem assets. We remain focused on the Company's earnings and asset quality with the ultimate goal of improved 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, 2012.  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 31,


September 30,



2012


2012



(Dollars in thousands)

ASSETS







Cash equivalents and time deposits


$

59,370


$

50,924

Investment Securities, available for sale



4,801



4,628

Loans Receivable, net



329,298



335,616

Mortgage-backed Securities, available for sale



209,018



213,563

Foreclosed Real Estate



3,370



1,674

Premises and Equipment, net



10,183



10,288

Bank Owned Life Insurance



17,007



16,869

Other Assets



10,966



11,537

Total Assets


$

644,013


$

645,099















LIABILITIES







Deposits


$

563,992


$

566,356

Junior Subordinated Debentures



17,011



17,011

Other Liabilities



7,395



6,593

Total Liabilities



588,398



589,960

Total Stockholders' Equity



55,615



55,139

Total Liabilities & Stockholders' Equity


$

644,013


$

645,099

 

Consolidated Statements of Operations
(Unaudited)






Three Months ended

December 31,



2012


2011



(Dollars in thousands except per share data)



Interest income


$

6,598


$

6,701


Interest expense



1,484



1,931


Net interest income



5,114



4,770


Provision for loan losses



500



300


Net interest income after provision for loan losses



4,614



4,470


Total non-interest income



665



544


Total non-interest expenses



4,267



4,315


Income before income tax expense



1,012



699


Income tax expense



373



237


Net income


$

639


$

462










Basic Earnings per Share


$

0.21


$

0.15










Diluted Earnings per Share


$

0.20


$

0.15











 

Summary of Financial Highlights
(Unaudited)






Three Months ended

December 31,




2012


2011





Return on average assets (annualized)



0.40%


0.29%


Return on average equity (annualized)



4.61%


3.55%









Interest rate spread



3.36%


3.24%


Net interest margin



3.39%


3.26%









Efficiency ratio



73.8%


81.2%


Ratio of average interest earning assets/interest
   bearing liabilities



103.4%


102.0%


















 

Tangible Book Value


(Unaudited)












At


At


At




December 31,


 September 30,


December 31,




2012


2012


2011




(Dollars in thousands except per share data)


Tangible book value per common share:











Total stockholders' equity


$

55,615


$

55,139


$

52,154


Less:  Intangible assets



(34)



(37)



(46)


Tangible common equity


$

55,581



55,102


$

52,108


Outstanding common shares



3,188,655



3,188,655



3,188,665













Tangible book value per common share (1)


$

17.43


$

17.28


$

16.34













(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

December 31,




2012


2011




(Dollars in thousands)






Allowance at beginning of period


$

5,470


$

4,768


Provision for loan losses



500



300


Recoveries



23



12


Charge-offs



(505)



(16)


Allowance at end of period


$

5,488


$

5,064










Allowance for loan losses as a percentage of gross
   loans



1.64%



1.40%










Allowance for loan losses to nonperforming loans



37%



29%












 

Non-Performing Assets
(Unaudited)











At


At


At



 December 31,
2012


September 30, 
2012


December 31,
2011



(Dollars in thousands)










Nonaccrual Loans:










Commercial 


$

5,914


$

10,545


$

9,070

Residential Real Estate (1)



3,447



2,600



6,968

Consumer



--



--



20

Total Nonaccrual Loans (2)



9,361



13,145



16,058

Accruing Troubled Debt Restructurings



5,493



6,647



1,133

                    Total Nonperforming Loans



14,854



19,792



17,191

Foreclosed Real Estate



3,370



1,674



1,275

Total Nonperforming Assets


$

18,224


$

21,466


$

18,466











Nonperforming Loans to Loans Receivable



4.51%



5.90%



4.84%











Nonperforming Assets to Total Assets



2.83%



3.33%



2.87%












(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, 2012 are $1.0 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 December 31, 2012, the Company had a total of $6.5 million in Troubled Debt Restructurings of which $6.2 million are performing according to their restructured terms.

 

SOURCE BCSB Bancorp, Inc.



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