EXHIBIT 99.1
PRESS RELEASE
FOR RELEASE JULY 16, 2008 AT 4:00 P.M.
For More Information Contact
Joseph J. Bouffard, President and CEO
(410) 248-9130
BCSB Bancorp, Inc.
BCSB BANCORP, INC. REPORTS JUNE 30, 2008 RESULTS
BCSB Bancorp, Inc. (NASDAQ: BCSB), the holding company for Baltimore County
Savings Bank, F.S.B., headquartered in Baltimore, Maryland, reported net income
of $285,000 or $0.09 per basic and diluted share for the quarter ended June 30,
2008 as compared to net income of $599,000 or $0.19 per basic and diluted share
for the quarter ended June 30, 2007. Financial results for the three months
ended June 30, 2007 included a $299,000 gain on the sale of certain loans in
connection with a balance sheet restructuring initiative completed in the 2007
fiscal year.
Net income for the nine months ended June 30, 2008 was $434,000 or $.14 per
basic and diluted share, as compared to a loss of $2,615,000 or ($.84) per basic
and diluted share for the nine months ended June 30, 2007. Net income during the
nine months ended June 30, 2007 was significantly affected by aggregate losses
of $7.1 million relating to the balance sheet restructuring. During the same
period, the Bank received insurance proceeds amounting to $3.4 million as a
partial recovery related to the losses from a check-kiting scheme discovered in
June of 2006.
President and CEO Joseph J. Bouffard commented that this was a significant
period during which the Company enjoyed its third consecutive quarter of
profitability and completed a conversion to a fully publicly traded company. As
a result of the conversion, capital ratios were strengthened and debt was
reduced at both the Bank and the holding company. Bouffard also noted that
earlier in the calendar year, in recognition of the Company's improvement, the
Bank's principal regulator, the Office of Thrift Supervision had rescinded a
Supervisory Agreement that had been in effect since 2005. On a cautionary note
Bouffard noted that although the quality of the Company's loan portfolio did not
require any additions to the loan loss reserve, if the economy continued to
decline additions to the allowance may be necessary in the future.
JUNE 30, 2008 HIGHLIGHTS
o Raised nearly $20 million in April 2008 by completing conversion from
Mutual Holding Company structure to a fully publicly owned corporation.
o Paid off more than $16 million in debt during the quarter ended June
30, 2008, including $6 million in Trust Preferred Securities.
o Fiscal year to date net interest income increased by $740,000, or 7.4%
compared to 2007.
o Interest rate spread for the nine months ended June 30, 2008 improved
to 2.47%, a 29% increase over the prior year.
o In the non-interest expense category, during the quarter the Company
recognized expense of $130,000 associated with a reduction in staff and
reversed $89,000 in expenses previously accrued in connection with
potential litigation that had been settled.
o Nonperforming assets as a percentage of total assets at June 30, 2008
drops to .28%, a 37% improvement compared to June 30, 2007.
o Allowance for loan losses to nonperforming loans increases to 161%.
o Equity to assets ratio at June 30, 2008 improves to 8.4% from 5.2% at
June 30, 2007.
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, 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.
BCSB Bancorp, Inc.
Consolidated Statements of Financial Condition
(Unaudited)
June 30, September 30,
2008 2007
------------------ -------------------
(Dollars in Thousands)
ASSETS
Cash equivalents and time deposits $ 61,191 $ 76,116
Investment Securities, available for sale 999 3,970
Loans Receivable, Net 402,706 416,302
Mortgage-backed Securities, Available for sale 94,325 104,999
Foreclosed Real Estate 0 94
Premises and Equipment, Net 9,902 10,454
Bank Owned Life Insurance 14,270 13,847
Other Assets 14,785 16,599
----------------- ------------------
Total Assets $ 598,178 $ 642,381
================= ==================
LIABILITIES
Deposits $ 510,259 $ 558,457
Borrowings 10,000 20,000
Junior Subordinated Debentures 17,011 23,197
Other Liabilities 10,792 6,135
----------------- ------------------
Total Liabilities 548,062 607,789
Total Stockholders' Equity 50,116 34,592
----------------- ------------------
Total Liabilities & Stockholders' Equity $ 598,178 $ 642,381
================= ==================
Consolidated Statements of Operations
(Unaudited)
Three Months ended June 30, Nine Months ended June 30,
2008 2007 2008 2007
---------- ----------- ---------- -----------
(Dollars in Thousands (Dollars in Thousands
except per share data) except per share data)
Interest Income $ 8,254 $ 9,656 $ 26,118 $ 29,860
Interest Expense 4,565 5,869 15,403 19,885
--------- ---------- --------- ----------
Net Interest Income 3,689 3,787 10,715 9,975
Provision for Loan Losses 0 0 0 117
--------- ---------- --------- ----------
Net Interest Income After Provision for Loan 3,689 3,787 10,715 9,858
Losses
Total Non-Interest Income 540 808 1,434 (5,833)
Total Non-Interest Expenses 3,810 3,749 11,633 8,164
--------- ---------- --------- ----------
Income (Loss) Before Tax Expense (Benefit) 419 846 516 (4,139)
Income Tax Expense (Benefit) 134 247 82 (1,524)
--------- ---------- --------- ----------
Net Income (Loss) $ 285 $ 599 $ 434 $ (2,615)
========= ========== ========= ==========
Basic and Diluted Earnings (Loss) Per Share $ 0.09 $ 0.19 $ 0.14 $ (.84)
========= ========== ========= ==========
Summary of Financial Highlights
(Unaudited)
Three Months ended June 30, Nine Months ended June 30,
2008 2007 2008 2007
---------- ----------- ---------- -----------
Return (Loss) on Average Assets (Annualized) 0.19% 0.35% 0.09% (0.48%)
Return (Loss) on Average Equity (Annualized) 2.27% 7.03% 1.42% (10.28%)
Interest Rate Spread 2.52% 2.43% 2.47% 1.92%
Net Interest Margin 2.57% 2.41% 2.47% 1.92%
Efficiency Ratio 90.05% 81.58% 95.75% 197.10%
Ratio of Average Interest Earnings
Assets/Interest-Bearing Liabilities 101.78% 99.44% 99.91% 100.13%
Allowance for Loan Losses
(Unaudited)
Three Months ended June 30, Nine Months ended June 30,
2008 2007 2008 2007
---------- ----------- ---------- -----------
(Dollars in Thousands) (Dollars in Thousands)
Allowance at Beginning of Period $ 2,674 $ 2,773 $ 2,650 $ 2,679
Provision for Loan Loss -- 117
Recoveries 46 26 215 212
Charge-Offs (45) (93) (190) (302)
--------- --------- --------- ---------
Allowance at End of Period $ 2,675 $ 2,706 $ 2,675 $ 2,706
========= ========= ========= ==========
Allowance for Loan Losses as a Percentage of
Loans 0.66% 0.66% 0.66% 0.66%
Allowance for Loan Losses as a Percentage of
Nonperforming Loans 161.0% 97.2% 161.0% 97.2%
Non-Performing Assets
(Unaudtied)
At June 30, At September At June 30,
2008 30, 2007 2007
------------------ ----------------- ------------------
(Dollars in Thousands)
Nonperforming Loans:
Commercial $ 1,649 $ 2,266 $ 2,283
Real Estate -- -- 487
Consumer 13 24 13
--------------- --------------- ---------------
Total Nonperforming Loans 1,662 2,290 2,783
Foreclosed Real Estate -- -- --
Other NonPerforming Assets 20 -- 126
--------------- --------------- ---------------
Total Nonperforming Assets $ 1,682 $ 2,290 $ 2,909
=============== =============== ===============
Nonperforming Loans as a Percentage of Total 0.68%
Loans 0.41% 0.55%
Nonperforming Assets as a Percentage of Total
Assets 0.28% 0.36% 0.45%