BCSB Bancorp, Inc. Reports Results For The Quarter Ended June 30, 2012

BALTIMORE, July 27, 2012 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank (the "Bank"), reported net income of $368,000 for the three months ended June 30, 2012, which represents the third quarter of its 2012 fiscal year, as compared to net income of $344,000 for the three months ended June 30, 2011. 

Net income for the nine months ended June 30, 2012 was $1,404,000, as compared to net income of $577,000 for the nine months ended June 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, net income available to common stockholders was $1,404,000 or $0.45 per basic share and $0.44 per diluted share for the nine months ended June 30, 2012, compared to a net income available to common stockholders of $4,000 or $0.00 per basic and diluted common share for the nine months ended June 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 nine months ended June 30, 2012. The Company was able to repay TARP without raising additional capital, which would have been dilutive to shareholders.

During the three and nine months ended June 30, 2012, earnings were favorably impacted by gains on sale of repossessed assets, increased commissions from sales of investment products and reductions in non-interest expense as compared to the same periods in the prior fiscal year. Net interest income also increased during the nine months ended June 30, 2012 as compared with the same period in 2011. During the three and nine months ended June 30, 2012, earnings were negatively affected by increased provision for loan losses and higher "Other Than Temporary Impaired" (OTTI) credit losses as compared with 2011. OTTI charges, which are included in the Consolidated Statements of Operations as reductions to non-interest income, totaled $250,000 during the three and nine months ended June 30, 2012 as compared with $100,000 for the three and nine months ended June 30, 2011.

President and Chief Executive Officer Joseph J. Bouffard commented, "Despite a slight increase in the provision for loan losses and a $250,000 OTTI charge during the June 2012 quarter, we were still able to generate increased profitability as compared with the same quarter in 2011. For the first nine months of fiscal year 2012, net income available to common shareholders increased by $1.4 million as compared with the same period in 2011. This improvement is primarily due to strategies successfully implemented to increase net interest income and reduce non-interest expenses. Although pleased with improved operating results, we remain very focused on monitoring asset quality."

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)








June 30,


September 30,



2012


2011



(Dollars in thousands)

ASSETS







Cash equivalents and time deposits


$

61,340


$

60,108

Investment Securities, available for sale



4,520



6,919

Loans Receivable, net



340,497



364,843

Mortgage-backed Securities, available for sale



194,552



150,879

Foreclosed Real Estate



1,457



2,999

Premises and Equipment, net



10,591



9,932

Bank Owned Life Insurance



16,692



16,228

Other Assets



12,721



12,948

Total Assets


$

642,370


$

624,856















LIABILITIES







Deposits


$

563,553


$

550,014

Junior Subordinated Debentures



17,011



17,011

Other Liabilities



8,430



5,872

Total Liabilities



588,994



572,897

Total Stockholders' Equity



53,376



51,959

Total Liabilities & Stockholders' Equity


$

642,370


$

624,856



Consolidated Statements of Operations
(Unaudited)






Three Months ended June 30,


Nine Months ended June 30,


2012


2011


2012



2011


(Dollars in thousands


(Dollars in thousands


except per share data)


except per share data)














Interest Income

$

6,392


$

6,857


$

19,607


$

20,327

Interest Expense


1,667



2,063



5,351



6,513

Net Interest Income


4,725



4,794



14,256



13,814

Provision for Loan Losses


300



--



900



800

Net Interest Income After 
 Provision for Loan Losses


4,425



4,794



13,356



13,014

Total Non-Interest Income


349



394



1,964



1,720

Total Non-Interest Expenses


4,192



4,677



13,170



14,001

Income Before Tax
  Expense


582



511



2,150



733

Income Tax Expense


214



167



746



156

Net Income


368



344



1,404



577

Preferred Stock dividends and discount accretion


--



--



--



(573)

Net Income available to 
 common shareholders

$

368


$

344


$

1,404


$

4













Basic Income Per
   Common Share

$

.11


$

.11


$

.45


$

.00













Diluted Income Per
  Common Share

$

.11


$

.11


$

.44


$

.00




Three Months ended
June 30,


Nine Months ended
June 30,


2012


2011


2012


2011









Return on Average Assets (Annualized)

 

.23%


.22%


.29%


--%

Return on Average Equity (Annualized)

2.76%


2.68%


3.55%


--%









Interest Rate Spread

3.16%


3.26%


3.20%


3.13%

Net Interest Margin

3.18%


3.29%


3.23%


3.17%









Efficiency Ratio

82.62%


90.15%


81.20%


90.13%

Ratio of Average Interest Earnings
  Assets/Interest Bearing Liabilities

 

102.49%


102.48%


 

102.22%


103.16%



Tangible Book Value
(Unaudited)












At June 30,



At September 30,



At June 30,



2012



2011



2011



(Dollars in thousands except per share data)


Tangible book value per common share:









Total stockholders' equity

$

53,376


$

51,959


$

51,455

Less:  Intangible assets


(40)



(51)



(57)

Tangible common equity

$

53,336



51,908


$

51,398

Outstanding common shares


3,188,655



3,192,119



3,192,119










Tangible book value per common share (1)

$

16.73


$

16.26


$

16.10











(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

June 30,


Nine Months ended
June 30,


2012


2011


2012


2011


(Dollars in thousands)


(Dollars in thousands)
















Allowance at Beginning of
  Period

$

5,378


$

5,006


$

4,768


$

6,634

Provision for Loan Losses


300



--



900



800

Recoveries


18



16



48



62

Charge-Offs


(447)



(1,146)



(467)



(3,620)

Allowance at End of
  Period

$

5,249


$

3,876


$

5,249


$

3,876













Allowance for Loan
  Losses as a Percentage
  of Gross Loans


1.52%



1.05%



1.52%



1.05%













Allowance for Loan
  Losses as a Percentage
  of Nonperforming Loans


25.3%



33.4%



25.3%



33.4%













 


Non-Performing Assets
(Unaudited)








At June 30,

2012


At September 30,

 2011


At June 30,

2011


(Dollars in thousands)










Nonaccrual Loans:









Commercial 

$

12,274


$

9,895


$

5,532

Residential Real Estate (1)


7,156



7,715



5,955

Consumer


--



20



111

Total Nonaccrual Loans (2)


19,430



17,630



11,598

Accruing Troubled Debt Restructurings


1,316



656



960

                    Total Nonperforming Loans


20,746



18,286



12,558

Foreclosed Real Estate


1,457



2,999



2,841

Total Nonperforming Assets

$

22,203


$

21,285


$

15,399










Nonperforming Loans to Loans Receivable


6.09%



5.01%



3.45%










Nonperforming Assets to Total Assets


3.46%



3.41%



2.45%











(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 June 30, 2012 are $9.0 million in Troubled Debt Restructurings, $6.5 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 June 30, 2012, the Company had a total of $10.3 million in Troubled Debt Restructurings.

SOURCE BCSB Bancorp, Inc.




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