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PRESS RELEASE
FOR RELEASE FEBRUARY 9, 2006 AT 4:00 P.M.
For More Information Contact
David Meadows
(410) 256-5000
Baltimore County Savings Bank
BCSB BANKCORP, INC.
REPORTS DECEMBER 31, 2005 RESULTS
BCSB Bankcorp, Inc. (NASDAQ: BCSB), the holding company for Baltimore County
Savings Bank, FSB, reported a net loss of $119,000 or ($0.02) per basic and
diluted share for the three months ended December 31, 2005. This compares to net
income of $86,000 or $0.01 per basic and diluted share for the same period in
2004. During the quarter, assets remained steady at $812.7 million at September
30, 2005 compared to $812.6 million as of December 31, 2005, while deposits
increased by $9.1 million or 1.5% from $597.7 million at September 30, 2005 to
$606.8 million at December 31, 2005. The increase in deposits was achieved
through normal marketing efforts and the opening of two new offices in Sparks
and Honeygo, Maryland. Earnings for the quarter were impacted by rising short
term rates both on borrowings and deposits which were not completely offset by
rising rates on loan products which generally have a longer term. Improvements
in spread should occur over time as long term rates continue to rise and funds
are re-invested in higher yielding assets and borrowings are reduced.
In light of reduced earnings resulting from the continued flat yield curve and
higher non-interest expenses, President Gary C. Loraditch announced that the
Board has adopted a number of strategies including a three year business plan
designed to enhance earnings. The strategies included increased operating
efficiencies, restructuring the Bank's balance sheet to reduce the Bank's
investment portfolio and redirect cash flow to higher yielding loan products and
leveraging the Bank's branch network by introducing additional products over the
upcoming years.
President Loraditch stated, "We want to capitalize on our traditional strength
as a solid residential community bank with a competitive product mix. During the
business plan process, we realized that we could consolidate several of our
operational departments utilizing new technologies provided by the Bank's data
processing conversion and still deliver the convenience and service for which
the Bank has been known." Interest income increased by $963,000 or 11.2% from
$8.6 million for the 3 months ended December 31, 2004 to $9.6 million for the 3
months ended December 31, 2005. Interest and fees on loans increased by $1.1
million or 19.2% from $5.6 million for the 3 months ended December 31, 2004 to
$6.7 million for the 3 months ended December 31, 2005. These increases were due
to an increase in the average balance of loans by $69.8 million from $387.4
million as of December 31, 2004 to $457.3 million as of December 31, 2005.
BCSB Bankcorp, Inc. is the holding company of Baltimore County Savings Bank, FSB
which was founded in 1955. The Bank currently operates eighteen offices
throughout the Baltimore metropolitan area. BCSB Bankcorp, Inc. became a
publicly traded mutual holding company in July 1998.
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, local and national economic conditions and the impact of interest
rates on financing. 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 therein will be achieved. The Company does not undertake, and
specifically disclaims any obligation, to publicly release the result of any
revisions that may be made to any forward-looking statements to reflect events
or circumstances after the date of such statements or to reflect the occurrence
of anticipated or unanticipated events.
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BCSB Bankcorp, Inc.
Summary of Financial Highlights
Consolidated Statements of Financial Condition
(Unaudited)
December 31, September 30,
2005 2005
(Dollars in Thousands)
ASSETS
Cash, equivalents and time deposits $ 30,709 $ 23,529
Investment Securities 152,508 153,381
Loans and Mortgage Backed Securities 585,107 592,937
Other Assets 44,298 42,898
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TOTAL ASSETS $ 812,622 $ 812,745
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LIABILITIES
Deposits $ 606,778 $ 597,669
Borrowed Money 135,403 144,796
Junior Subordinated Debentures 23,197 23,197
Other Liabilities 6,527 5,043
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TOTAL LIABILITIES 771,905 770,705
TOTAL STOCKHOLDERS' EQUITY 40,717 42,040
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 812,622 $ 812,745
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Consolidated Statements of Operations
(Unaudited)
Three Months ended December 31,
2005 2004
(Dollars in thousands
except per share data)
Interest Income $ 9,596 $ 8,633
Interest Expense 5,970 4,624
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Net Interest Income 3,626 4,009
(Reversal) Provisions for Loan Losses (109) 120
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Net Interest Income After (Reversal) Provision for Loan Losses 3,735 3,889
Total Non-Interest Income 265 298
Total Non-Interest Expenses 4,275 4,114
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Income Before Tax provision (benefit) (275) 73
Income Tax (benefit) (156) (13)
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NET (LOSS) INCOME $ (119) $ 86
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Basic and Diluted (Loss) Earnings Per Share $ (0.02) $ 0.01
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