BCSB Bancorp, Inc. Reports Results For The Quarter Ended March 31, 2011

BALTIMORE, April 29, 2011 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank, FSB, (the "Bank") reported net income of $188,000 for the three month period ended March 31, 2011, which represents the second quarter of its 2011 fiscal year, as compared to a net loss of $639,000 for the three months ended March 31, 2010.

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 a net loss available to common stockholders of $229,000 or ($0.08) per basic and diluted common share for the three months ended March 31, 2011, compared to a net loss available to common stockholders of $795,000 or ($0.27) per basic and diluted common share for the three months ended March 31, 2010. 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.

Net income for the six months ended March 31, 2011 was $233,000, as compared to net income of $31,000 for the six months ended March 31, 2010.

When consideration is given to dividends and discount accretion on preferred shares issued under the U.S. Treasury's TARP Capital Purchase Program, the net loss available to common stockholders was $340,000 or $(0.11) per basic and diluted common share for the six months ended March 31, 2011, compared to a net loss available to common stockholders of $282,000 or $(0.09) per basic and diluted common share for the six months ended March 31, 2010.

During the three and six months ended March 31, 2011, earnings were favorably impacted by significantly lower loan loss provisions and, to a lesser extent, moderate increases in non-interest income as compared to the same periods in the preceding fiscal year. Also, during the three and six months ended March 31, 2010, the Company recognized $100,000 in credit losses for certain private label collateralized mortgage obligation securities deemed by management to be "Other Than Temporarily Impaired".  Earnings during the three and six months ended March 31, 2011 were negatively impacted by higher non-interest expenses and lower net interest income as compared to the same periods in the preceding fiscal year.

President and Chief Executive Officer Joseph J. Bouffard commented "Although the current economic environment remains difficult, we have made strides in achieving certain important objectives. In January of this year, we were able to repay TARP without raising additional capital, which would have been dilutive to our shareholders. The repayment also will save our Company $540,000 in annual preferred dividends. Measured deployment of available liquidity has helped to increase interest rate spread compared with our prior quarter ended December 31, 2010. Nonperforming assets remain manageable overall, decreasing as a percentage of assets compared with the prior quarter. We continue to aggressively pursue alternatives regarding asset quality and foreclosed property on our balance sheet."

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, 2010.  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)



March 31,


September 30,



2011


2010



(Dollars in thousands)

ASSETS







Cash equivalents and time deposits


$

88,394


$

108,999

Investment Securities, available for sale



23,382



18,390

Loans Receivable, net



374,037



388,933

Mortgage-backed Securities, available for sale



99,197



65,975

Foreclosed Real Estate



2,180



--

Premises and Equipment, net



7,555



7,826

Bank Owned Life Insurance



15,997



15,655

Other Assets



14,022



14,777

Total Assets


$

624,764


$

620,555















LIABILITIES







Deposits


$

543,215


$

534,366

Junior Subordinated Debentures



17,011



17,011

Other Liabilities



14,087



7,788

Total Liabilities



574,313



559,165

Total Stockholders' Equity



50,451



61,390

Total Liabilities & Stockholders' Equity


$

624,764


$

620,555




Consolidated Statements of Operations

(Unaudited)




Three Months ended March 31,


Six Months ended March 31,



2011


2010


2011


2010



(Dollars in thousands


(Dollars in thousands



except per share data)


except per share data)

Interest Income


$

6,665



$

7,241


$

13,470



$

14,686


Interest Expense



2,104




2,390



4,450




4,912


Net Interest Income



4,561




4,851



9,020




9,774


Provision for Loan Losses



--




2,200



800




2,500


Net Interest Income After Provision for Loan Losses



4,561




2,651



8,220




7,274


Total Non-Interest Income



542




504



1,326




1,205


Total Non-Interest Expenses



4,869




4,285



9,324




8,581


Income (loss) Before Tax Expense (Benefit)



234




(1,130)



222




(102)


Income Tax Expense (Benefit)



46




(491)



(11)




(133)


Net Income (Loss)



188




(639)



233




31


Preferred Stock dividends and discount accretion



(417)




(156)



(573)




(313)


Net Loss available to common shareholders


$

(229)



$

(795)


$

(340)



$

(282)


















Basic Loss Per Common Share


$

(.08)



$

(.27)


$

(.11)



$

(.09)


Diluted Loss Per Common Share


$

(.08)




(.27)


$

(.11)



$

(.09)





Summary of Financial Highlights

(Unaudited)



Three Months ended

March 31,


Six Months ended

March 31,



2011


2010


2011


2010






Return on Average Assets (Annualized)



.12%




(.43%)



.08%




.01%


Return on Average Equity (Annualized)



1.49%




(4.24%)



.83%




.10%


















Interest Rate Spread



3.21%




3.40%



3.10%




3.49%


Net Interest Margin



3.23%




3.49%



3.14%




3.57%


















Efficiency Ratio



95.41%




80.02%



90.12%




78.16%


Ratio of Average Interest Earnings Assets/Interest Bearing Liabilities



101.03%




105.41%



102.62%




104.76%






















Allowance for Loan Losses

(Unaudited)




Three Months ended

March 31,


Six Months ended

March 31,



2011


2010


2011


2010



(Dollars in thousands)


(Dollars in thousands)






Allowance at Beginning of Period


$

7,170



$

4,228


$

6,634



$

3,927


Provision for Loan Loss



--




2,200



800




2,500


Recoveries



25




20



46




62


Charge-Offs



(2,189)




(8)



(2,474)




(49)


Allowance at End of Period


$

5,006



$

6,440


$

5,006



$

6,440


















Allowance for Loan Losses as a Percentage of Gross Loans



1.34%




1.62%



1.34%




1.62%


















Allowance for Loan Losses as a Percentage of Nonperforming Loans



54.9%




67.2%



54.9%




67.2%





Non-Performing Assets

(Unaudited)




At March 31,

2011


At September 30, 2010


At March 31,

2010



(Dollars in thousands)






Nonperforming Loans: (1)













Commercial


$

8,465



$

12,106



$

8,709


Residential Real Estate



631




656




876


Consumer



21




23




--


Total Nonperforming Loans



9,117




12,785




9,585


Foreclosed Real Estate



2,180




--




--


Other Nonperforming Assets



--




--




5


Total Nonperforming Assets


$

11,297



$

12,785



$

9,590















Nonperforming Loans to Loans Receivable



2.44%




3.29%




2.38%















Nonperforming Assets to Total Assets



1.81%




2.06%




1.60%





(1) Nonperforming  status denotes loans on which, in the opinion of management, the collection of additional interest is questionable.  Also included in this category at March 31, 2011 are $3.6 million in Troubled Debt Restructurings, $1.0 million of which are not delinquent.  Reporting guidance requires disclosure of these loans as non-performing even though they are current in terms of principal and interest payments.

SOURCE BCSB Bancorp, Inc.



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