PRESS RELEASE
FOR RELEASE OCTOBER 26, 2009 AT 3:00 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 THE YEAR ENDED
SEPTEMBER 30, 2009
BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for
Baltimore County Savings Bank, FSB, reported a net loss of $1,955,000 for the
year ended September 30, 2009, as compared to net income of $894,000 for the
year ended September 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 Company reported a net loss available to common
stockholders of $2,432,000 or ($0.84) per basic and diluted share for the year
ended September 30, 2009, compared to net income available to common
stockholders of $894,000 or $0.30 per basic and diluted common share for the
year ended September 30, 2008.
The net loss for the three months ended September 30, 2009 was $1,879,000, as
compared to net income of $461,000 for the three months ended September 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 $2,035,000 or $(0.70) per
basic and diluted share for the three months ended September 30, 2009, compared
to net income available to common stockholders of $461,000 or $0.16 per basic
and diluted share for the three months ended September 30, 2008.
During the three and twelve months ended September 30, 2009, the Company's
earnings were negatively impacted by a $2.3 million impairment charge to write
off all goodwill recorded in connection with its acquisition in 2002 of WHG
Bancshares Corporation. The impairment charge was a non-cash adjustment which
had no affect on liquidity, tangible capital or regulatory capital. The Company
also recorded higher loan loss provisions in both periods. Additionally,
operating results for the twelve months ended September 30, 2009 included
$270,000 in FDIC special assessment premiums and $500,000 in recognized
impairment losses for mortgage-backed investment securities deemed by management
to be "other than temporarily impaired" (OTTI).
Additional loan loss provisions during the three months ended June 30, 2009 were
necessary to address increases in classified assets and the continued decline in
overall economic conditions. Nonperforming assets were $3.5 million at September
30, 2009 versus $2.4 million at June 30, 2009, representing a 46% increase.
Loans classified special mention, substandard and loss, which include
nonperforming loans, increased to $18.9 million at September 30, 2009 from $15.8
million at June 30, 2009. The Company also had $639,000 in foreclosed real
estate as of September 30, 2009 and June 30, 2009 that was subsequently sold in
October 2009 for more than its carrying amount.
President and Chief Executive Officer Joseph J. Bouffard commented "The
financial services industry has faced unprecedented challenges over the past
year. Losses recognized by our Company have been, for the most part,
attributable to non-cash accounting adjustments related to goodwill and OTTI.
Despite these losses, we are encouraged by certain key elements of core
operations, which continue to improve. Net interest income and net interest
margin have steadily increased. When excluding the $500,000 OTTI charge,
non-interest income has also increased. The Bank is very well capitalized and
asset quality within our loan portfolio remains strong overall."
Stockholders' equity increased by $9.4 million during the twelve months ended
September 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, partially offset by the Company's net loss for the
year. Stockholders' equity also includes accumulated other comprehensive loss
(net of taxes) which was ($1.8) million at September 30, 2009 compared to ($2.5)
million as of September 30, 2008. Most of this loss relates to the $21.9 million
collateralized mortgage obligation securities portfolio. The Company recorded
$500,000 in losses during the quarter ended June 30, 2009 as a result of these
securities. The Company does not intend to sell these securities prior 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)
September 30, September 30,
2009 2008
------------------ -------------------
(Dollars in thousands)
ASSETS
Cash equivalents and time deposits $ 40,352 $ 35,083
Investment Securities, available for sale -- 994
Loans Receivable, net 401,011 400,469
Mortgage-backed Securities, available for sale 90,478 89,956
Foreclosed Real Estate 639 1,244
Premises and Equipment, net 9,024 9,762
Bank Owned Life Insurance 15,001 14,389
Other Assets 12,933 15,185
--------- ---------
Total Assets $ 569,438 $ 567,082
========= =========
LIABILITIES
Deposits $ 487,989 $ 484,791
Borrowings -- 10,000
Junior Subordinated Debentures 17,011 17,011
Other Liabilities 5,305 5,525
--------- ---------
Total Liabilities 510,305 517,327
Total Stockholders' Equity 59,133 49,755
--------- ---------
Total Liabilities & Stockholders' Equity $ 569,438 $ 567,082
========= =========
Consolidated Statements of Operations
(Unaudited)
Three Months ended Twelve Months ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
(Dollars in thousands (Dollars in thousands
except per share data) except per share data)
Interest Income $ 7,389 $ 8,019 $ 29,938 $ 34,137
Interest Expense 2,883 3,926 13,614 19,329
----------- ---------- ---------- ----------
Net Interest Income 4,506 4,093 16,324 14,808
Provision for Loan Losses 450 360 1,350 360
----------- ---------- ---------- ----------
Net Interest Income After Provision for Loan
Losses 4,056 3,733 14,974 14,448
Total Non-Interest Income 683 613 1,876 2,047
Total Non-Interest Expenses 6,441 3,633 18,794 15,266
----------- ---------- ---------- ----------
(Loss) Income Before Tax (Benefit) Expense (1,702) 713 (1,944) 1,229
Income Tax (Benefit) Expense 177 252 11 335
--------- ---------- ---------- ----------
Net (Loss) Income (1,879) 461 (1,955) 894
Preferred Stock dividends and discount accretion (156) -- (477) --
----------- ---------- ---------- ----------
Net (Loss) Income available to common
shareholders $ (2,035) $ 461 $ (2,432) $ 894
=========== ========== ========== ==========
Basic and Diluted (Loss) Earnings Per Common
Share(1) $ (.70) $ .16 $ (.84) $ .30
=========== ========== ========== ==========
(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.
Summary of Financial Highlights
(Unaudited)
Three Months ended Twelve Months ended
September 30, September 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
(Loss) Return on Average Assets (Annualized) (1.31%) 0.32% (.34%) .15%
(Loss) Return on Average Equity (Annualized) (12.52%) 3.69% (3.36%) 2.08%
Interest Rate Spread 3.38% 3.02% 2.97% 2.60%
Net Interest Margin 3.43% 3.08% 3.05% 2.61%
Efficiency Ratio 124.13% 77.20% 103.27% 90.56%
Ratio of Average Interest Earning
Assets/Interest Bearing Liabilities 102.18% 101.84% 103.06% 100.35%
Allowance for Loan Losses
(Unaudited)
Three Months ended Twelve Months ended
September 30, September 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
(Dollars in thousands) (Dollars in thousands)
Allowance at Beginning of Period $ 3,457 $ 2,675 $ 2,672 $ 2,650
Provision for Loan Loss 450 360 1,350 360
Recoveries 31 50 206 265
Charge-Offs (11) (413) (301) (603)
--------- ---------- --------- ----------
Allowance at End of Period $ 3,927 $ 2,672 $ 3,927 $ 2,672
========= ========== ========= ==========
Allowance for Loan Losses as a Percentage of
Gross Loans 0.97% 0.65% 0.97% 0.65%
Allowance for Loan Losses as a Percentage of
Nonperforming Loans 135.83% 320.0% 135.83% 320.0%
Non-Performing Assets
(Unaudited)
At September 30, At June 30, At September 30,
2009 2009 2008
------------------ ----------------- ------------------
(Dollars in thousands)
Nonperforming Loans:
Commercial Real Estate $ 2,795 $ 1,303 $ 671
Residential Real Estate 96 467 162
Consumer 0 2 2
---------- --------- ---------
Total Nonperforming Loans 2,891 1,772 835
Foreclosed Real Estate 639 639 1,230
Other Nonperforming Assets -- -- 14
---------- --------- ---------
Total Nonperforming Assets $ 3,530 $ 2,411 $ 2,079
========== ========= =========
Nonperforming Loans to Loans Receivable 0.72% 0.44% 0.21%
Nonperforming Assets to Total Assets 0.62% 0.41% 0.37%
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,
LOCAL AND NATIONAL ECONOMIC FACTORS AND THE MATTERS DESCRIBED IN "ITEM 1A. RISK
FACTORS" IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED
SEPTEMBER 30, 2008. 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.