BCSB Bancorp, Inc. Reports Results for the Quarter Ended December 31, 2011

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 31,


September 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

    bearing liabilities


101.96%


104.21%



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

    loans


1.40%


1.82%






Allowance for loan losses to nonperforming loans


29.46%


52.50%



Non-Performing Assets

(Unaudited)




At December 31,

2011


At September 30,

2011


At December 31,

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.




Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.