BCSB Bancorp, Inc. Reports Earnings for the Quarter and Year Ended September 30, 2012
BALTIMORE, Oct. 26, 2012 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank, reported net income of $1.8 million for the year ended September 30, 2012, as compared to net income of $116,000 for the year ended September 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, the Company reported net income available to common stockholders of $1.8 million or $0.58 per basic common share and $0.56 per diluted common share for the year ended September 30, 2012, compared to a net loss available to common stockholders of $457,000 or ($0.15) per basic and diluted common share for the year ended September 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 twelve months ended September 30, 2012. The Company was able to repay TARP without raising additional capital, which would have been dilutive to shareholders.
Net income for the three months ended September 30, 2012 was $396,000, or $0.13 per basic common share and $0.12 per diluted common share, as compared to a net loss of $461,000 or ($0.15) per basic and diluted common share for the three months ended September 30, 2011.
During the three and twelve months ended September 30, 2012, earnings were favorably impacted by increases in net interest income, increases in non-interest income and reductions in loan loss provisions as compared to the same periods in the prior fiscal year. Non-interest expenses also decreased during the twelve months ended September 30, 2012 as compared with the same period in 2011 primarily due to successfully implemented expense reduction initiatives. The Company recorded Other Than Temporary Impairment ("OTTI") charges of $120,000 and $370,000 during the three and twelve months ended September 30, 2012, respectively, and charges of $200,000 and $300,000 during the three and twelve months ended September 30, 2011, respectively. These charges relate to certain private label collateralized mortgage obligations in the Company's mortgage-backed securities portfolio. Non-interest expenses increased slightly during the three months ended September 30, 2012 as compared with the same period in the prior year primarily due to $150,000 in provision for losses on premises during the current year. This provision resulted from the consolidation of two branch facilities expected to be completed by calendar year end.
President and Chief Executive Officer Joseph J. Bouffard commented, "We are pleased to report earnings of $1.8 million during our 2012 fiscal year despite ongoing economic challenges. During the year, notable progress has been made toward achieving several important goals. As a result, certain key components of operating results have improved, including increases in net interest income and non-interest income, along with decreases in operating expenses and loan loss provisions. There have also been encouraging trends related to asset quality, with reductions in charge-offs, nonaccrual loans and loan loss provisions. We remain focused on strengthening the Company and enhancing 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, 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. |
||||||
| September 30, |
September 30, |
|||||
| 2012 |
2011 |
|||||
| (Dollars in thousands) |
||||||
| ASSETS |
||||||
| Cash equivalents and time deposits |
$ |
50,924 |
$ |
60,108 |
||
| Investment Securities, available for sale |
4,628 |
6,919 |
||||
| Loans Receivable, net |
335,616 |
364,843 |
||||
| Mortgage-backed Securities, available for sale |
214,004 |
150,879 |
||||
| Foreclosed Real Estate |
1,674 |
2,999 |
||||
| Premises and Equipment, net |
10,288 |
9,932 |
||||
| Bank Owned Life Insurance |
16,869 |
16,228 |
||||
| Other Assets |
11,363 |
12,948 |
||||
| Total Assets |
$ |
645,366 |
$ |
624,856 |
||
| LIABILITIES |
||||||
| Deposits |
$ |
566,356 |
$ |
550,014 |
||
| Junior Subordinated Debentures |
17,011 |
17,011 |
||||
| Other Liabilities |
6,593 |
5,872 |
||||
| Total Liabilities |
589,960 |
572,897 |
||||
| Total Stockholders' Equity |
55,406 |
51,959 |
||||
| Total Liabilities & Stockholders' Equity |
$ |
645,366 |
$ |
624,856 |
||
| Consolidated Statements of Operations |
||||||||||||||||||
| Three Months ended September 30, |
Twelve Months ended September 30, |
|||||||||||||||||
| 2012 |
2011 |
2012 |
2011 |
|||||||||||||||
| (Dollars in thousands |
(Dollars in thousands |
|||||||||||||||||
| except per share data) |
except per share data) |
|||||||||||||||||
| Interest Income |
$ |
6,464 |
$ |
6,608 |
$ |
26,071 |
$ |
26,935 |
||||||||||
| Interest Expense |
1,626 |
2,037 |
6,977 |
8,550 |
||||||||||||||
| Net Interest Income |
4,838 |
4,571 |
19,094 |
18,385 |
||||||||||||||
| Provision for Loan Losses |
300 |
1,300 |
1,200 |
2,100 |
||||||||||||||
| Net Interest Income After Provision for Loan Losses |
4,538 |
3,271 |
17,894 |
16,285 |
||||||||||||||
| Total Non-Interest Income |
486 |
282 |
2,450 |
2,002 |
||||||||||||||
| Total Non-Interest Expenses |
4,454 |
4,335 |
17,624 |
18,336 |
||||||||||||||
| Income (Loss) Before Tax Expense (Benefit) |
570 |
(782) |
2,720 |
(49) |
||||||||||||||
| Income Tax Expense (Benefit) |
174 |
(321) |
920 |
(165) |
||||||||||||||
| Net Income (Loss) |
396 |
(461) |
1,800 |
116 |
||||||||||||||
| Preferred Stock dividends and discount accretion |
-- |
-- |
-- |
(573) |
||||||||||||||
| Net Income (Loss) available to common shareholders |
$ |
396 |
$ |
(461) |
$ |
1,800 |
$ |
(457) |
||||||||||
| Basic Earnings (Loss) Per Common Share |
$ |
0.13 |
$ |
(0.15) |
$ |
0.58 |
$ |
(0.15) |
||||||||||
| Diluted Earnings (Loss) Per Common Share |
$ |
0.12 |
$ |
(0.15) |
$ |
0.56 |
$ |
(0.15) |
||||||||||
| Summary of Financial Highlights |
|||||||
| Three Months ended |
Twelve Months ended |
||||||
| September 30, |
September 30, |
||||||
| 2012 |
2011 |
2012 |
2011 |
||||
| Return (Loss) on Average Assets (Annualized) |
0.25% |
(0.29%) |
0.28% |
0.02% |
|||
| Return (Loss) on Average Equity (Annualized) |
2.90% |
(3.55%) |
3.39% |
0.20% |
|||
| Interest Rate Spread |
3.21% |
3.09% |
3.18% |
3.10% |
|||
| Net Interest Margin |
3.24% |
3.12% |
3.21% |
3.15% |
|||
| Efficiency Ratio |
83.65% |
89.32% |
81.80% |
89.94% |
|||
| Ratio of Average Interest Earning Assets/Interest Bearing Liabilities |
102.76% |
102.69% |
102.63% |
103.44% |
|||
| Tangible Book Value |
||||||||||||||
| (Unaudited) |
||||||||||||||
| At September 30, |
At June 30, |
At September 30, |
||||||||||||
| 2012 |
2012 |
2011 |
||||||||||||
| (Dollars in thousands except per share data) |
||||||||||||||
| Tangible book value per common share: |
||||||||||||||
| Total stockholders' equity |
$ |
55,406 |
$ |
53,376 |
$ |
51,959 |
||||||||
| Less: Intangible assets |
(37) |
(40) |
(51) |
|||||||||||
| Tangible common equity |
$ |
55,369 |
53,336 |
$ |
51,908 |
|||||||||
| Outstanding common shares |
3,188,655 |
3,188,655 |
3,192,119 |
|||||||||||
| Tangible book value per common share (1) |
$ |
17.36 |
$ |
16.73 |
$ |
16.26 |
||||||||
| (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 |
||||||||||||||||||||||||
| Three Months ended September 30, |
Twelve Months ended September 30, |
|||||||||||||||||||||||
| 2012 |
2011 |
2012 |
2011 |
|||||||||||||||||||||
| (Dollars in thousands) |
(Dollars in thousands) |
|||||||||||||||||||||||
|
Allowance at Beginning of Period |
$ |
5,249 |
$ |
3,876 |
$ |
4,768 |
$ |
6,634 |
||||||||||||||||
|
Provision for Loan Losses |
300 |
1,300 |
1,200 |
2,100 |
||||||||||||||||||||
|
Recoveries |
25 |
18 |
73 |
80 |
||||||||||||||||||||
|
Charge-Offs |
(104) |
(426) |
(571) |
(4,046) |
||||||||||||||||||||
|
Allowance at End of Period |
$ |
5,470 |
$ |
4,768 |
$ |
5,470 |
$ |
4,768 |
||||||||||||||||
|
Allowance for Loan Losses as a Percentage of Gross Loans |
1.60% |
1.29% |
1.60% |
1.29% |
||||||||||||||||||||
|
Allowance for Loan Losses as a Percentage of Nonperforming Loans |
27.64% |
26.07% |
27.64% |
26.07% |
||||||||||||||||||||
| Non-Performing Assets |
|||||||||||||||||
| At September 30, 2012 |
At June 30, |
At September 30, |
|||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||
| Nonaccrual Loans: |
|||||||||||||||||
| Commercial |
$ |
10,545 |
$ |
12,274 |
$ |
9,895 |
|||||||||||
| Residential Real Estate (1) |
2,600 |
7,156 |
7,715 |
||||||||||||||
| Consumer |
-- |
-- |
20 |
||||||||||||||
| Total Nonaccrual Loans (2) |
13,145 |
19,430 |
17,630 |
||||||||||||||
| Accruing Troubled Debt Restructurings |
6,647 |
1,316 |
656 |
||||||||||||||
| Total Nonperforming Loans |
19,792 |
20,746 |
18,286 |
||||||||||||||
| Foreclosed Real Estate |
1,674 |
1,457 |
2,999 |
||||||||||||||
| Total Nonperforming Assets |
$ |
21,466 |
$ |
22,203 |
$ |
21,285 |
|||||||||||
| Nonperforming Loans to Loans Receivable |
5.90% |
6.09% |
5.01% |
||||||||||||||
| Nonperforming Assets to Total Assets |
3.33% |
3.46% |
3.41% |
||||||||||||||
| (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 September 30, 2012 are $2.6 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 September 30, 2012, the Company had a total of $9.3 million in Troubled Debt Restructurings. |
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SOURCE BCSB Bancorp, Inc.
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