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EXHIBIT 99.1
PRESS RELEASE
For More Information Contact
Joseph J. Bouffard
(410) 248-9130
BCSB Bankcorp, Inc.
BCSB BANKCORP, INC.
ANNOUNCES RESULTS OF SUBSCRIPTION AND COMMUNITY OFFERING AND
COMMENCEMENT OF SYNDICATED COMMUNITY OFFERING AND
REPORTS SEPTEMBER 30, 2007 RESULTS
BCSB Bankcorp, Inc. (NASDAQ: BCSB), holding company for Baltimore County Savings
Bank, F.S.B., announced today that BCSB Bancorp, Inc. has received subscriptions
for approximately 592,498 shares in its subscription and community offering. The
number of shares subscribed for does not include shares to be purchased by the
employee stock ownership plan. The subscription offering concluded on October
19, 2007. BCSB Bancorp also announced that it has commenced a syndicated
community offering to complete the sale of shares. Subject to market conditions,
independent appraiser review and regulatory approval, BCSB Bancorp expects to
sell in the aggregate approximately 3,004,750 shares, which is the minimum of
the offering range set forth in the prospectus dated August 24, 2007, in the
subscription and community offering and the syndicated community offering. The
syndicated community offering will be conducted through a syndicate of
broker-dealers that will be managed by Sandler O'Neill & Partners, L.P. Neither
Sandler O'Neill & Partners, L.P. nor any other member of the syndicate group
will be required to purchase any shares in the offering. The terms and
conditions of the syndicated community offering are more fully set forth in BCSB
Bancorp's prospectus dated August 24, 2007, as supplemented.
The offering is being conducted in connection with the second-step conversion of
Baltimore County Savings Bank, F.S.B. In order to consummate the offering, BCSB
Bancorp must sell a minimum of 3,004,750 shares at $10.00 per share. Orders
received in the subscription and community offering will be maintained by BCSB
Bancorp, with interest on subscribers' funds continuing to accrue until
completion of the offering. To facilitate the sale of the remaining shares, the
Company has increased the stock purchase limitations as follows: the maximum
amount that an individual, any individual together with any associates, and any
group of persons acting in concert may purchase is now $1,500,000; the maximum
amount that purchasers in the syndicated community offering may purchase is now
$1,500,000; the maximum purchase of common stock in the offerings by a person,
through one or more individual and/or joint deposit
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accounts, is now $1,500,000, and the maximum purchase of common stock in the
subscription offering by a group of persons through a single deposit account is
now $1,500,000. Subscribers who have submitted an order in the subscription and
community offering for the previous maximum purchase of $500,000 of common stock
are being given the opportunity to increase their orders to the new maximum
limitations.
The completion of the offering remains subject to (i) confirmation by Feldman
Financial Advisors, Inc. the Company's independent appraiser, of the Company's
existing appraisal, and (ii) final regulatory approvals.
SEPTEMBER 30, 2007 RESULTS
BCSB Bankcorp, Inc. reported a net loss of $2.9 million or ($0.50) per basic and
diluted share for the fiscal year ended September 30, 2007 as compared to a net
loss of $7.4 million or ($1.26) per basic and diluted share for the fiscal year
ended September 30, 2006. For the three months ended September 30, 2007 the
Company reported a net loss of $306,000 or ($0.06) per basic and diluted share
as compared to a net loss of $498,000 or ($0.08) per basic and diluted share for
the three months ended September 30, 2006.
The loss for the fiscal year ended September 30, 2007 was primarily associated
with the completion of the balance sheet restructuring that was previously
announced by the Company in March 2007. As part of the restructuring, the
Company elected to sell approximately $251 million of lower yielding loans and
investment securities. Proceeds were used to pay off $73 million in debt,
purchase approximately $85 million in higher yielding investments and fund a
growing commercial loan portfolio. In conjunction with this restructuring, the
Company realized pre-tax losses of $7.1 million. Also during the fiscal year
ended September 30, 2007, the Bank received $3.4 million in insurance proceeds
as a partial recovery of losses incurred resulting from a check-kiting fraud
perpetrated against the Bank in June 2006. This fraud was the primary reason for
the Company's $7.4 million loss for the Company's previous fiscal year which
ended September 30, 2006.
The $306,000 net loss for the three months ended September 30, 2007 was due to
$296,000 of expenses related to the check-kiting scheme previously reported and
additional compensation expenses of approximately $150,000 related to an
agreement with William M. Loughran, Executive Vice President and Chief Lending
Officer, who is retiring after 34 years of service and will remain as a
director. In addition, professional fees of approximately $150,000 were incurred
for special, limited scope consulting and legal projects and FDIC premiums
increased by approximately $200,000 from a new premium assessment methodology
applicable in 2007. Net interest income for the three months ended September 30,
2007 increased by $345,000 as compared to the same period in 2006, primarily due
to the recently completed balance sheet restructuring. The net loss of $498,000
for the three months ended September 30, 2006 was primarily due to the flat
yield curve present at that time, which negatively affected the Company's net
interest margin.
This press release contains statements that are forward-looking, as that term is
defined by the Private Securities Litigation Reform Act of 1995 and the
Securities and Exchange Commission in its rules, regulations and releases. The
Company intends that such forward-looking statements
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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 delays in consummation of the conversion and offering,
difficulties in selling the common stock or in selling the common stock within
the expected time frame, real estate values, market conditions, the impact of
interest rates on financing, and local and national economic factors.
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.
This press release is neither an offer to sell nor a solicitation of an offer to
buy common stock, nor shall there be any sale of these securities in any state
or jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws or laws of any
such state or jurisdiction. The offer is made only by the prospectus and
prospectus supplements. The shares of common stock are not deposits or savings
accounts and are not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
The summary financial information at and for the twelve months ended
September 30, 2006 presented below is derived in part from our consolidated
financial statements and is only a summary. You should read it in conjunction
with the consolidated financial statements and notes contained in our Annual
Report on Form 10-K for the year ended September 30, 2006. The information at
and for the twelve months ended September 30, 2007 and for the three months
ended September 30, 2007 and 2006 was not audited, but in the opinion of
management, reflects all adjustments necessary for a fair presentation. All of
these adjustments are normal and recurring.
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BCSB Bankcorp, Inc.
Summary of Financial Highlights
Consolidated Statements of Financial Condition
September 30, September 30,
2007 2006
(Dollars in Thousands)
ASSETS
Cash equivalents and time deposits $ 76,116 $ 11,837
Investment Securities 3,970 147,564
Loans and Mortgage Backed Securities 521,301 579,252
Other Assets 40,997 47,204
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TOTAL ASSETS $ 642,384 $ 785,857
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LIABILITIES
Deposits $ 558,460 $ 604,845
Borrowings 20,000 118,473
Junior Subordinated Debentures 23,197 23,197
Other Liabilities 6,135 5,921
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TOTAL LIABILITIES 607,792 752,436
TOTAL STOCKHOLDERS' EQUITY 34,592 33,421
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 642,384 $ 785,857
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Consolidated Statements of Operations
(Dollars in Thousands
except per share data)
Twelve Months ended September Three Months ended September
30, 30,
2007 2006 2007 2006
---- ---- ---- ----
Interest Income $ 39,112 $ 39,995 $ 9,252 $ 10,339
Interest Expense 25,517 25,776 5,632 7,064
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Net Interest Income 13,595 14,219 3,620 3,275
Provision for Loan Losses 117 194 0 42
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Net Interest Income After Provision for Loan Losses 13,478 14,025 3,620 3,233
Total Non-Interest Income (5,335) 1,501 497 336
Total Non-Interest Expenses 12,809 26,968 4,644 4,355
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Loss Before Tax Benefit (4,666) (11,442) (527) (786)
Income Tax Benefit (1,745) (4,049) (221) (288)
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Net Loss $ (2,921) $ (7,393) $ (306) $ (498)
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Basic and Diluted Loss Per Share $ (0.50) $ (1.26) $ (0.06) $ (0.08)
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