PRESS RELEASE
FOR RELEASE JULY 20, 2009 AT 4:00 P.M.
For More Information Contact
Joseph J. Bouffard
(410) 248-9130
BCSB Bancorp, Inc.
Baltimore County Savings Bank, FSB
BCSB BANCORP, INC.
REPORTS RESULTS FOR QUARTER ENDING JUNE 30, 2009
BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for
Baltimore County Savings Bank, FSB, reported a net loss of $418,000 for the
three month period ended June 30, 2009, which represents the third quarter of
its 2009 fiscal year. This compares to net income of $285,000 for the three
months ended June 30, 2008. When consideration is given to dividends and
discount accretion on preferred shares issued under the U.S. Treasury's TARP
Capital Purchase Program as disclosed in the accompanying Consolidated Financial
Statements of Operations, the Company reported a net loss available to common
stockholders of $575,000 or ($0.20) per basic and diluted share for the three
months ended June 30, 2009, compared to net income available to common
stockholders of $285,000 or $0.09 per basic and diluted common share for the
three months ended June 30, 2008.
The net loss for the nine months ended June 30, 2009 was $76,000, as compared to
net income of $434,000 for the nine months ended June 30, 2008. When
consideration is given to dividends and discount accretion on preferred shares
issued under the U.S. Treasury's TARP Capital Purchase Program, the net loss
available to common stockholders was $398,000 or $(0.14) per basic and diluted
share for the nine months ended June 30, 2009, compared to net income available
to common stockholders of $434,000 or $0.14 per basic and diluted share for the
nine months ended June 30, 2008.
During the three months ended June 30, 2009, the Company's earnings were
negatively impacted by $270,000 in additional FDIC insurance premiums due to
recently implemented special assessments for all insured institutions, $500,000
in recognized credit losses for mortgage-backed investment securities deemed by
management to be "Other Than Temporarily Impaired" (OTTI) and $600,000 in loan
loss provisions.
Additional loan loss provisions during the three months ended June 30, 2009 were
necessary to address increases in troubled assets and the continued decline in
overall economic conditions. Nonperforming assets were $2.4 million at June 30,
2009 versus $1.9 million at March 31, 2009, representing a 28% increase. Within
this group, nonperforming commercial loans increased to $1.3 million at June 30,
2009 from $857,000 at March 31, 2009, a 52% increase. Loans classified special
mention, substandard and loss, which include nonperforming loans, increased to
$15.8 million at June 30, 2009 from $12.9 million at March 31, 2009. The Company
also had $639,000 in foreclosed real estate as of June 30, 2009 versus no
foreclosed real estate at March 31, 2009. Nonperforming assets to total assets
were .41% as of June 30, 2009.
President and Chief Executive Officer Joseph J. Bouffard commented "Although
disappointed with recent quarterly operating results, we remain well positioned
to weather currently challenging economic conditions. Net interest income and
our net interest margin continue to improve. The Bank is very well capitalized
and asset quality within our loan portfolio remains strong overall."
Stockholders' equity increased by $9.8 million during the nine months ended June
30, 2009. This increase is primarily due to the $10.8 million sale of preferred
stock and warrants in December 2008 under the U.S. Treasury's TARP Capital
Purchase Program. Stockholders' equity was negatively impacted by accumulated
other comprehensive loss (net of taxes) which was ($3.3) million at June 30,
2009 compared to ($2.5) million as of September 30, 2008. Most of this loss
relates to the Company's $23.2 million collateralized mortgage obligation
securities portfolio. As stated above, $500,000 in losses were recorded in
earnings during the quarter ended June 30, 2009 as a result of these securities,
for which the gross market value has declined by $4.4 million over the past nine
months. This drop in value is reflective of turmoil in the mortgage backed
securities market and the market price decline 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 further 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 additional losses in its consolidated
statements of operations.
BCSB Bancorp, Inc.
Consolidated Statements of Financial Condition
(Unaudited)
June 30, September 30,
2009 2008
------------- --------------
(Dollars in thousands)
ASSETS
Cash equivalents and time deposits $ 56,211 $ 35,083
Investment Securities, available for sale -- 994
Loans Receivable, net 398,881 400,469
Mortgage-backed Securities, available for sale 91,083 89,956
Foreclosed Real Estate 639 1,244
Premises and Equipment, net 9,241 9,762
Bank Owned Life Insurance 14,771 14,389
Other Assets 16,250 15,185
------------- --------------
Total Assets $ 587,076 $ 567,082
============= ==============
LIABILITIES
Deposits $ 503,370 $ 484,791
Borrowings -- 10,000
Junior Subordinated Debentures 17,011 17,011
Other Liabilities 7,133 5,525
------------- --------------
Total Liabilities 527,514 517,327
Total Stockholders' Equity 59,562 49,755
------------- --------------
Total Liabilities & Stockholders' Equity $ 587,076 $ 567,082
============= ==============
Consolidated Statements of Operations
(Unaudited)
Three Months ended June 30, Nine Months ended June 30,
2009 2008 2009 2008
---- ---- ---- ----
(Dollars in thousands (Dollars in thousands
except per share data) except per share data)
Interest Income $ 7,380 $ 8,254 $ 22,549 $ 26,118
Interest Expense 3,249 4,565 10,731 15,403
---------- ---------- ---------- ----------
Net Interest Income 4,131 3,689 11,818 10,715
Provision for Loan Losses 600 0 900 0
---------- ---------- ---------- ----------
Net Interest Income After Provision for Loan
Losses 3,531 3,689 10,918 10,715
Total Non-Interest Income 139 540 1,193 1,434
Total Non-Interest Expenses 4,445 3,810 12,353 11,633
---------- ---------- ---------- ----------
(Loss) Income Before Tax (Benefit) Expense (775) 419 (242) 516
Income Tax (Benefit) Expense (357) 134 (166) 82
---------- ---------- ---------- ----------
Net (Loss) Income (418) 285 (76) 434
Preferred Stock dividends and discount accretion (157) -- (322) --
---------- ---------- ---------- ----------
Net (Loss) Income available to common
shareholders $ (575) $ 285 $ (398) $ 434
========== ========== ========== ==========
Basic and Diluted (Loss) Earnings Per Common
Share(1) $ (.20) $ .09 $ (.14) $ .14
========== ========== ========== ==========
Summary of Financial Highlights
(Unaudited)
Three Months ended Nine Months ended
June 30, June 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Return on Average Assets (Annualized) (0.29%) 0.19% (.02%) .09%
Return on Average Equity (Annualized) (2.91%) 2.27% (.18%) 1.42%
Interest Rate Spread 2.93% 2.52% 2.83% 2.47%
Net Interest Margin 3.02% 2.57% 2.93% 2.47%
Efficiency Ratio 104.10% 90.05% 94.94% 95.75%
Ratio of Average Interest Earning
Assets/Interest Bearing Liabilities 103.91% 101.78% 103.69% 99.90%
- ----------------------------
(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.
Allowance for Loan Losses
(Unaudited)
Three Months ended Nine Months ended
June 30, June 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
(Dollars in thousands) (Dollars in thousands)
Allowance at Beginning of Period $ 2,973 $ 2,674 $ 2,672 $ 2,650
Provision for Loan Loss 600 -- 900 --
Recoveries 46 46 176 215
Charge-Offs (162) (45) (291) (190)
------- -------- -------- --------
Allowance at End of Period $ 3,457 $ 2,675 $ 3,457 $ 2,675
======= ======== ======== ========
Allowance for Loan Losses as a Percentage of
Gross Loans 0.86% 0.66% 0.86% 0.66%
Allowance for Loan Losses as a Percentage of
Nonperforming Loans 195.09% 161.0% 195.09% 161.0%
Non-Performing Assets
(Unaudited)
At June 30, At September At June 30,
2009 30, 2008 2008
------------------ ----------------- ------------------
(Dollars in thousands)
Nonperforming Loans:
Commercial Real Estate $ 1,303 $ 671 $ 1,649
Residential Real Estate 467 162 --
Consumer 2 2 13
--------- --------- ---------
Total Nonperforming Loans 1,772 835 1,662
Foreclosed Real Estate 639 1,230 --
Other Nonperforming Assets -- 14 20
--------- --------- ---------
Total Nonperforming Assets $ 2,411 $ 2,079 $ 1,682
========= ========= =========
Nonperforming Loans to Loans Receivable 0.44% 0.21% 0.41%
Nonperforming Assets to Total Assets 0.41% 0.37% 0.28%
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.