PRESS RELEASE
FOR RELEASE JANUARY 26, 2009 AT 4:00 P.M.
For More Information Contact
Joseph J. Bouffard
(410) 256-5000
Baltimore County Savings Bank, FSB
BCSB BANCORP, INC.
REPORTS RESULTS FOR QUARTER ENDING DECEMBER 31, 2008
BCSB Bancorp, Inc. (NASDAQ: BCSB), the holding company for Baltimore County
Savings Bank, FSB, reported net income of $240,000 or $0.08 per basic and
diluted share for the three month period ended December 31, 2008, which
represents the first quarter of its 2009 fiscal year. This compares to net
income of $93,000 or $0.03 per basic and diluted share for the three months
ended December 31, 2007.
During the three months ending December 31, 2008, the Company benefited from
increases in net interest income, non-interest income and decreased non-interest
expense as compared to the corresponding period during the prior fiscal year.
These improvements in earnings were partially offset by $150,000 in loan loss
provisions during the three months ending December 31, 2008 to address continued
declines in economic conditions, particularly in relation to the local real
estate market.
President and Chief Executive Officer Joseph J. Bouffard commented that "The
Company continues to make progress in its efforts to improve profitability and
enhance shareholder value in these difficult economic times. The $10.8 million
capital infusion related to the U.S. Treasury's TARP Capital Purchase Program
provided additional liquidity to help our customers manage through these
difficult economic times as well as support the Company's other long term
initiatives." He also noted that the Bank's lending portfolio continues to be a
strength of the Company. The ratio of nonperforming assets to total assets
improved from 0.49% at December 31, 2007 to 0.22% at December 31, 2008.
Stockholders' equity increased by $9.6 million during the quarter ending
December 31, 2008. This reflects the Company's aforementioned TARP proceeds
received in December 2008 as well as earnings during the period. Stockholders'
equity was negatively impacted by accumulated other comprehensive loss (net of
taxes) which was ($3.9) million at December 31, 2008 compared to ($2.5) million
at the end of the previous quarter. Most of this loss relates to the Company's
$24.6 million in collateralized mortgage obligation securities portfolio, for
which the gross market value declined by $4.0 million during the most recent
quarter. This is reflective of turmoil in the mortgage backed securities market
and the price decline in market value of these securities. The Company has the
ability and the intent to hold these securities to maturity and to date, the
securities have performed in accordance with their terms. If in the future it is
determined that declines in market values with respect to these or any other
securities are other than temporary, the Company would be required to recognize
losses in its Consolidated Statement of Operations. The Company has no equity
holdings in Federal Home Loan Mortgage Corporation or Federal National Mortgage
Association stock and, accordingly, has no loss exposure in this area.
QUARTER ENDING DECEMBER 31, 2008 HIGHLIGHTS
o Received $10.8 in capital by issuing preferred stock and warrants
resulting from our participation in the U.S. Treasury TARP Capital
Purchase Program.
o Net interest income increased modestly during the quarter as
compared with the corresponding period for 2007.
o Net income increased to $240,000 or $0.08 per basic and diluted
share for the three month period ending December 31, 2008 as
compared to $93,000 or $0.03 per basic and diluted share during the
same period in 2007.
o The ratio of nonperforming assets to total assets decreased to 0.22%
as compared to 0.49% at the end of December 31, 2007.
o The Bank's Risk-Based Capital ratio increased to over 18% as of
December 31, 2008.
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)
December 31, September 30,
2008 2008
--------------- ---------------
(Dollars in thousands)
ASSETS
Cash equivalents and time deposits $ 48,806 $ 35,083
Investment Securities, available for sale 991 994
Loans Receivable, net 395,792 400,469
Mortgage-backed Securities, available for sale 95,946 89,956
Foreclosed Real Estate 10 1,244
Premises and Equipment, net 9,517 9,762
Bank Owned Life Insurance 14,452 14,389
Other Assets 16,150 15,185
----------- ------------
Total Assets $ 581,664 $ 567,082
=========== ============
LIABILITIES
Deposits $ 487,255 $ 484,791
Borrowings 10,000 10,000
Junior Subordinated Debentures 17,011 17,011
Other Liabilities 8,005 5,525
---------- ------------
Total Liabilities 522,271 517,327
Total Stockholders' Equity 59,393 49,755
---------- ------------
Total Liabilities & Stockholders' Equity $ 581,664 $ 567,082
========== ============
Consolidated Statements of Operations
(Unaudited)
Three Months ended December 31,
2008 2007
---------- ------------
(Dollars in thousands
except per share data)
Interest Income $ 7,674 $ 9,262
Interest Expense 3,967 5,600
--------- -----------
Net Interest Income 3,707 3,662
Provision for Loan Losses 150 --
--------- -----------
Net Interest Income After Provision for Loan Losses 3,557 3,662
Total Non-Interest Income 603 465
Total Non-Interest Expenses 3,747 4,097
--------- -----------
Income Before Tax 413 30
Income Tax Expense (Benefit) 173 (63)
--------- -----------
Net Income $ 240 $ 93
--------- -----------
Basic and Diluted Income Per Share $ 0.08 $ 0.03
--------- -----------
Summary of Financial Highlights
(Unaudited)
Three Months ended
December 31,
2008 2007
--------- ---------
Return on Average Assets (Annualized) 0.17% 0.06%
Return on Average Equity (Annualized) 1.80% 1.05%
Interest Rate Spread 2.70% 2.47%
Net Interest Margin 2.80% 2.46%
Efficiency Ratio 86.96% 99.27%
Ratio of Average Interest Earnings
Assets/Interest Bearing Liabilities 103.15% 99.74%
Allowance for Loan Losses
(Unaudited)
Three Months ended
December 31,
2008 2007
--------- ---------
(Dollars in thousands)
Allowance at Beginning of Period $ 2,672 $ 2,650
Provision for Loan Loss 150 --
Recoveries 90 91
Charge-Offs (81) (109)
-------- --------
Allowance at End of Period $ 2,831 $ 2,632
======== ========
Allowance for Loan Losses to Loans Receivable 0.71% 0.63%
Allowance for Loan Losses to Nonperforming Loans 224.0% 89.1%
Non-Performing Assets
(Unaudited)
At December 31, At September At December 31,
2008 30, 2008 2007
---------------- ----------------- ----------------
(Dollars in thousands)
Nonperforming Loans:
Commercial $ 1,070 $ 671 $ 2,296
Real Estate 194 162 657
Consumer -- 2 2
---------- --------- ---------
Total Nonperforming Loans 1,264 835 2,955
Foreclosed Real Estate -- 1,230 94
Other Nonperforming Assets 10 14 --
---------- --------- ---------
Total Nonperforming Assets $ 1,274 $ 2,079 $ 3,049
========== ========= =========
Nonperforming Loans to Loans Receivable 0.32% 0.21% 0.71%
Nonperforming Assets to Total Assets 0.22% 0.37% 0.49%