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EXHIBIT 99.1
PRESS RELEASE
FOR RELEASE APRIL 21, 2009 AT 4:00 P.M.
For More Information Contact
Joseph J. Bouffard
(410) 248-9130
Baltimore County Savings Bank, FSB
BCSB BANCORP, INC.
REPORTS RESULTS FOR QUARTER ENDING MARCH 31, 2009
BCSB Bancorp, Inc. (NASDAQ: BCSB), the holding company for Baltimore County
Savings Bank, FSB, reported net income of $102,000 or ($0.02 loss) per basic and
diluted common share for the three month period ended March 31, 2009, which
represents the second quarter of its 2009 fiscal year. This compares to net
income of $55,000 or $.02 per basic and diluted common share for the three
months ended March 31, 2008.
Net income for the six months ended March 31, 2009 was $342,000 or $.06 per
basic and diluted common share, as compared to net income of $148,000 or $.05
per basic and diluted common share for the six months ended March 31, 2008.
During the three and six months ended March 31, 2009, the Company benefited from
increases in net interest income and non-interest income as compared to
corresponding periods during the prior fiscal year. These improvements in
earnings were partially offset by increases in FDIC insurance premiums on
deposits and loan loss provisions during the three and six months ended March
31, 2009 of $150,000 and $300,000, respectively. Loan loss provisions during the
current fiscal year were necessary to address continued declines in general
economic conditions. Basic and diluted earnings per common share during the
current fiscal year were negatively impacted by dividends payable on preferred
shares issued under the U.S. Treasury's TARP Capital Purchase Program.
President and Chief Executive Officer Joseph J. Bouffard commented "We are
encouraged by the Company's continued profitability despite challenging
conditions within the financial services industry". He also noted that the
Bank's loan portfolio continues to demonstrate strong asset quality, with no
foreclosed real estate and a ratio of nonperforming assets to total assets of
only .32% as of March 31, 2009.
Stockholders' equity increased by $10.1 million during the six months ended
March 31, 2009. This increase is primarily due to the $10.8 million sale of
preferred stock in December 2008 related to the U.S. Treasury's TARP Capital
Purchase Program as well as earnings during the period. Stockholders' equity was
negatively impacted by accumulated other comprehensive loss (net of taxes) which
was ($3.5) million at March 31, 2009 compared to ($2.5) million as of September
30, 2008. Most of this loss relates to the Company's $24.0 million in
collateralized mortgage obligation securities portfolio, for which the gross
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market value declined by $4.4 million over the past six months. 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 or credit losses 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 is currently
analyzing how the recent accounting guidance regarding the recognition of
other-than-temporary impairments may affect how these unrealized losses are
treated in the future.
PERIOD ENDING MARCH 31, 2009 HIGHLIGHTS
o The Company has reported six consecutive quarters of profitable
operating results.
o Net interest income, interest rate spread and net interest margin
for the three and six months ended March 31, 2009 increased in
comparison to corresponding periods during the previous fiscal year.
o Deposits have increased by $10.4 million and $12.9 million over the
three and six month periods ended March 31, 2009, respectively.
o The ratio of nonperforming assets to total assets remained very low
at .32% as of March 31, 2009.
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.
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BCSB Bancorp, Inc.
Consolidated Statements of Financial Condition
(Unaudited)
March 31, September 30,
2009 2008
------------------ -------------------
(Dollars in thousands)
ASSETS
Cash equivalents and time deposits $ 61,560 $ 35,083
Investment Securities, available for sale 1,000 994
Loans Receivable, net 395,665 400,469
Mortgage-backed Securities, available for sale 92,353 89,956
Foreclosed Real Estate -- 1,244
Premises and Equipment, net 9,451 9,762
Bank Owned Life Insurance 14,587 14,389
Other Assets 16,023 15,185
----------------- ------------------
Total Assets $ 590,639 $ 567,082
================= ==================
LIABILITIES
Deposits $ 497,670 $ 484,791
Borrowings 10,000 10,000
Junior Subordinated Debentures 17,011 17,011
Other Liabilities 6,057 5,525
----------------- ------------------
Total Liabilities 530,738 517,327
Total Stockholders' Equity 59,901 49,755
----------------- ------------------
Total Liabilities & Stockholders' Equity $ 590,639 $ 567,082
================= ==================
Consolidated Statements of Operations
(Unaudited)
Six Months ended March 31, Three Months ended March 31,
2009 2008 2009 2008
---- ---- ---- ----
(Dollars in thousands (Dollars in thousands
except per share data) except per share data)
Interest Income $ 15,169 $ 17,864 $ 7,495 $ 8,602
Interest Expense 7,482 10,839 3,515 5,239
---------- ---------- ---------- ----------
Net Interest Income 7,687 7,025 3,980 3,363
Provision for Loan Losses 300 -- 150 --
---------- ---------- ---------- ----------
Net Interest Income After Provision for Loan
Losses 7,387 7,025 3,830 3,363
Total Non-Interest Income 1,054 894 451 429
Total Non-Interest Expenses 7,908 7,822 4,161 3,726
---------- ---------- ---------- ----------
Income Before Tax (Benefit) Expense 533 97 120 66
Income Tax (Benefit) Expense 191 (51) 18 11
---------- ---------- ---------- ----------
Net Income 342 148 102 55
Preferred Stock dividends and discount accretion (165) -- (154) --
---------- ---------- ---------- ----------
Net Income (Loss) available to common
shareholders $ 177 $ 148 $ (52) $ 55
========== ========== ========== ==========
Basic and Diluted Earnings (Loss) Per Common
Share(1) $ .06 $ .05 $ (.02) $ .02
========== ========== ========== ==========
- ----------------------------------
(1) - Per share amounts have been adjusted by the exchange rate of .5264 as a
result of the second step conversion that occurred on April 10, 2008.
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Summary of Financial Highlights
(Unaudited)
Three Months ended Six Months ended
March 31, March 31,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Return on Average Assets (Annualized) .07% .04% 0.12% .05%
Return on Average Equity (Annualized) .68% .60% 1.21% .83%
Interest Rate Spread 2.85% 2.36% 2.78% 2.42%
Net Interest Margin 2.95% 2.34% 2.88% 2.40%
Efficiency Ratio 93.91% 98.26% 90.47% 98.78%
Ratio of Average Interest Earnings
Assets/Interest Bearing Liabilities 104.01% 99.31% 103.58% 99.53%
Allowance for Loan Losses
(Unaudited)
Three Months ended Six Months ended
March 31, March 31,
2009 2008 2009 2008
---------- ---------- ---------- ----------
(Dollars in thousands) (Dollars in thousands)
Allowance at Beginning of Period $ 2,832 $ 2,632 $ 2,672 $ 2,650
Provision for Loan Loss 150 -- 300 --
Recoveries 39 78 130 169
Charge-Offs (48) (36) (129) (145)
--------- ---------- --------- ----------
Allowance at End of Period $ 2,973 $ 2,674 $ 2,973 $ 2,674
========= ========== ========= ==========
Allowance for Loan Losses as a Percentage of
Gross Loans 0.75% 0.65% 0.75% 0.65%
Allowance for Loan Losses as a Percentage of
Nonperforming Loans 158.2% 1437.6% 158.2% 1437.6%
Non-Performing Assets
(Unaudited)
At March 31, At September At March 31,
2009 30, 2008 2008
------------------ ----------------- ------------------
(Dollars in thousands)
Nonperforming Loans:
Commercial $ 857 $ 542 $ 184
Real Estate 1,021 291 --
Consumer 1 2 2
--------------- --------------- ---------------
Total Nonperforming Loans 1,879 835 186
Foreclosed Real Estate -- 1,230 59
Other Nonperforming Assets -- 14 --
--------------- --------------- ---------------
Total Nonperforming Assets $ 1,879 $ 2,079 $ 245
=============== =============== ===============
Nonperforming Loans to Loans Receivable 0.47% 0.21% 0.04%
Nonperforming Assets to Total Assets 0.32% 0.37% 0.04%