PRESS RELEASE
FOR RELEASE MAY 11, 2006 AT 4:00 P.M.
For More Information Contact
David Meadows
(410) 256-5000
Baltimore County Savings Bank
BCSB BANKCORP, INC.
REPORTS MARCH 31, 2006 RESULTS
BCSB Bankcorp, Inc. (NASDAQ: BCSB), the holding company for Baltimore County
Savings Bank, FSB, reported earnings of $114,000 or $0.02 per basic and diluted
share for the quarter ended March 31, 2006. This compared to $96,000 or $0.02
per basic and diluted share for the same period in 2005, which represented an
increase of 18.8%. The increase in net income was attributed to a decrease in
non-interest expenses of $315,000, and an increase in non-interest income of
$44,000, partially offset by a decrease in net interest income of $336,000.
Net income decreased from $182,000 for the six months ending March 31, 2005 to a
net loss of ($5,000) for the six months ending March 31, 2006. Net income was
impacted by the decrease in net interest income of $719,000 from $8.1 million
for the six months ending March 31, 2005 to $7.4 million for the six months
ending March 31, 2006. The decrease was partially off-set by a decrease in
non-interest expenses and the decrease in the provision for loan losses. During
the six months ending March 31, 2006, the Company's assets decreased by $4
million or 0.5% from $812.7 million as of September 30, 2005 to $808.7 million
as of March 31, 2006.
President Gary C. Loraditch noted that earnings over the preceding six months
continued to be impacted by prevailing interest rates. However, the improved
quarterly results ending March 31, 2006 reflected the Bank's strategy to reduce
non-interest expenses and begin restructuring the Bank's balance sheet to reduce
the Bank's investment portfolio and to redirect cash flow into higher yielding
loan products. Interest income increased $963,000 or 10.8% from $8.9 million for
the three months ending March 31, 2005 compared to $9.9 million for the three
months ending March 31, 2006 and interest and fees on loans increased by $1.1
million or 18.9% from $5.9 million for the three months ending March 31, 2005 to
$7 million for the three months ending March 31, 2006. These increases reflected
an overall increase in the average balance of loans of $60.9 million from $398.3
million as of March 31, 2005 to $459.2 million as of the quarter ending March
31, 2006.
BCSB Bankcorp, Inc. is the holding company of Baltimore County Savings Bank, FSB
which was founded in 1955. 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.
BCSB Bankcorp, Inc.
Summary of Financial Highlights
Consolidated Statements of Financial Condition
(Unaudited)
March 31, September 30,
2006 2005
(Dollars in Thousands)
ASSETS
Cash equivalents and time deposits $ 29,368 $ 23,629
Investment Securities 151,089 153,381
Loans and Mortgage Backed Securities 583,770 592,937
Other Assets 44,452 42,798
-------------- -------------
TOTAL ASSETS $ 808,679 $ 812,745
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LIABILITIES
Deposits $ 612,081 $ 597,669
Borrowings 126,060 144,796
Junior Subordinated Debentures 23,197 23,197
Other Liabilities 7,590 5,043
-------------- -------------
TOTAL LIABILITIES 768,928 770,705
TOTAL STOCKHOLDERS' EQUITY 39,751 42,040
-------------- -------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 808,679 $ 812,745
============== =============
Consolidated Statements of Operations
(Unaudited)
Six Months ended March 31 Three Months ended March 31
2006 2005 2006 2005
(Dollars in Thousands) (Dollars in Thousands)
(except per share data) (except per share data)
Interest Income $ 19,477 $ 17,551 $ 9,881 $ 8,918
Interest Expense 12,105 9,460 6,135 4,836
---------- ---------- --------- ----------
Net Interest Income $ 7,372 $ 8,091 $ 3,746 $ 4,082
(Reversal) Provision for Loan Losses (109) 120 -- --
---------- ---------- --------- ----------
Net Interest Income After Provision for Loan Losses $ 7,481 $ 7,971 $ 3,746 $ 4,082
Total Non-Interest Income 524 513 259 215
Total Non-Interest Expenses 8,168 8,322 3,893 4,208
---------- ---------- --------- ----------
(Loss) Income Before Tax Benefit $ (163) $ 162 $ 112 $ 89
Income Tax benefit (158) (20) (2) (7)
---------- ---------- --------- ----------
NET (LOSS) INCOME $ (5) $ 182 $ 114 $ 96
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Basic and Diluted Earnings Per Share $ 0.00 $ 0.03 $ 0.02 $ 0.02
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