BCSB Bancorp, Inc. Reports Results For The Second Quarter Ended March 31, 2013

BALTIMORE, April 25, 2013 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank (the "Bank") reported net income of $303,000, or $0.09 per basic and diluted share for the three month period ended March 31, 2013, which represents the second quarter of its 2013 fiscal year, as compared to net income of $574,000, or $0.19 per basic share and $0.18 per diluted share for the three months ended March 31, 2012. The Company also disposed of a private label CMO security in March 2013. A loss on sale of $588,000 related to the security was more than offset by gains on sales of other securities in the Company's investment portfolio during the quarter. 

Net income for the six months ended March 31, 2013 was $942,000, or $0.30 per basic share and $0.29 per diluted share, as compared to net income of $1,036,000, or $0.34 per basic share and $0.33 per diluted share for the six months ended March 31, 2012.

During the three and six months ended March 31, 2013, earnings were favorably impacted by reductions in non-interest expense as compared to the same periods in the prior fiscal year and, during the six months ended March 31, 2013, earnings were favorably impacted by an increase in net interest income. Earnings for the three and six months ended March 31, 2013 were negatively impacted by decreases in non-interest income and increases in provision for loan losses, as compared to the same periods in the prior fiscal year. Reductions in non-interest income during fiscal year 2013 were primarily due to gain on sales of foreclosed real estate recognized during the prior fiscal year. Increases in provision for loan losses were necessary to address elevated charge-offs during fiscal year 2013 as certain problem loans were foreclosed upon and transferred to Foreclosed Real Estate.

President and Chief Executive Officer Joseph J. Bouffard commented, "Although somewhat disappointed with net earnings, we were able to make notable progress with other important initiatives during the period. Nonperforming assets have declined in each of the past two consecutive quarters and have dropped by nearly $3.5 million during the first six months of fiscal year 2013. As mentioned above, we disposed of a  private label CMO security, eliminating exposure to future OTTI charges related to that instrument. And on April 19, 2013 we were able to repurchase from the U.S. Treasury a warrant to purchase more than 183,000 shares of the Company's common stock issued in connection with the TARP Capital Purchase Program. We have now completely exited TARP without having to raise capital, which would have diluted our shareholders." 

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)




March 31,


September 30,



2013


2012



(Dollars in thousands)

ASSETS







Cash equivalents and time deposits


$

45,017


$

50,924

Investment Securities, available for sale



4,757



4,628

Loans Receivable, net



316,315



335,616

Mortgage-backed Securities, available for sale



234,268



213,563

Foreclosed Real Estate



3,659



1,674

Premises and Equipment, net



10,229



10,288

Bank Owned Life Insurance



17,163



16,869

Other Assets



10,887



11,537

Total Assets


$

642,295


$

645,099















LIABILITIES







Deposits


$

561,012


$

566,356

Junior Subordinated Debentures



17,011



17,011

Other Liabilities



8,546



6,593

Total Liabilities



586,569



589,960

Total Stockholders' Equity



55,726



55,139

Total Liabilities & Stockholders' Equity


$

642,295


$

645,099

 

Consolidated Statements of Operations

(Unaudited)



Three Months ended March 31,


Six Months ended March 31,



2013




2012



2013




2012


(Dollars in thousands


(Dollars in thousands


except per share data)


except per share data)















Interest Income

$

6,100



$

6,514


$

12,698



$

13,215

Interest Expense


1,341




1,753



2,825




3,684

Net Interest Income


4,759




4,761



9,873




9,531

Provision for Loan Losses


450




300



950




600

Net Interest Income After Provision for Loan Losses


4,309




4,461



8,923




8,931

Total Non-Interest Income


667




1,071



1,332




1,615

Total Non-Interest Expenses


4,538




4,663



8,805




8,978

Income Before Income Tax Expense


438




869



1,450




1,568

Income Tax Expense


135




295



508




532

Net Income

$

303



$

574


$

942



$

1,036















Basic Net Income Per Common Share

$

0.09



$

0.19


$

0.30



$

0.34

Diluted Net Income Per Common Share

$

0.09



$

0.18


$

0.29



$

0.33

 


Three Months ended

March 31,


Six Months ended

March 31,



2013


2012



2013


2012






Return on Average Assets (Annualized)


0.19%


0.36%



0.29%


0.33%


Return on Average Equity (Annualized)


2.20%


4.36%



3.37%


3.96%













Interest Rate Spread


3.13%


3.21%



3.24%


3.22%


Net Interest Margin


3.16%


3.23%



3.28%


3.25%













Efficiency Ratio


83.62%


79.97%



78.57%


80.55%


Ratio of Average Interest Earning Assets/Interest Bearing Liabilities


104.01%


102.01%



103.70%


101.99%


 

Tangible Book Value

(Unaudited)




At March 31,



At September 30,



At March 31,



2013



2012



2012













(Dollars in thousands except per share data)


Tangible book value per common share:












Total stockholders' equity

$

55,726



$

55,139



$

53,164


Less:  Intangible assets


(30)




(37)




(43)


Tangible common equity

$

55,696




55,102



$

53,121


Outstanding common shares


3,189,668




3,188,655




3,188,655














Tangible book value per common share (1)

$

17.46



$

17.28



$

16.66


 

(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 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

March 31,


Six Months ended

March 31,



2013



2012



2013



2012


(Dollars in thousands)


(Dollars in thousands)













Allowance at Beginning of Period

$

5,488


$

5,064


$

5,470


$

4,768

Provision for Loan Losses


450



300



950



600

Recoveries


16



18



39



29

Charge-Offs


(411)



(4)



(916)



(19)

Allowance at End of Period

$

5,543


$

5,378


$

5,543


$

5,378













Allowance for Loan Losses as a Percentage of Gross Loans


1.72%



1.52%



1.72%



1.52%













Allowance for Loan Losses as a Percentage of Nonperforming Loans


37.4%



25.4%



37.4%



25.4%

 


Non-Performing Assets

(Unaudited)



At March 31,

2013


At September 30,

2012


At March 31,

2012


(Dollars in thousands)










Nonaccrual Loans:









Commercial 

$

4,449


$

10,545


$

12,446

Residential Real Estate (1)


4,226



2,600



7,307

Consumer


--



--



--

Total Nonaccrual Loans (2)


8,675



13,145



19,753

Accruing Troubled Debt Restructurings


6,162



6,647



1,418

                    Total Nonperforming Loans


14,837



19,792



21,171

Nonperforming Foreclosed Real Estate (3)


3,151



1,674



673

Total Nonperforming Assets

$

17,988


$

21,466


$

21,844










Nonperforming Loans to Loans Receivable


4.69%



5.90%



6.07%










Nonperforming Assets to Total Assets


2.80%



3.33%



3.42%

 

(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 March 31, 2013 is $109,000 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 March 31, 2013, the Company had a total of $6.3 million in Troubled Debt Restructurings, all of which are performing according to their restructured terms.



(3)

Regulatory guidance provides that residential rental foreclosed real estate with leases in place and demonstrated cash flow generating a reasonable rate of return generally is not considered to be a classified asset. As of March 31, 2013, the Company has identified $508,000 in foreclosed real estate meeting these criteria. Accordingly, this amount has been excluded from nonperforming assets.

  

SOURCE BCSB Bancorp, Inc.



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