Market Overview

BCSB Bancorp, Inc. Reports Earnings for the Quarter and Year Ended September 30, 2012

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BALTIMORE, Oct. 26, 2012 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company") (NASDAQ: BCSB), the holding company for Baltimore County Savings Bank, reported net income of $1.8 million for the year ended September 30, 2012, as compared to net income of $116,000 for the year ended September 30, 2011. For comparison purposes, 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 net income available to common stockholders of $1.8 million or $0.58 per basic common share and $0.56 per diluted common share for the year ended September 30, 2012, compared to a net loss available to common stockholders of $457,000 or ($0.15) per basic and diluted common share for the year ended September 30, 2011. The Company repaid TARP on January 26, 2011 and was required to accelerate accretion of the remaining discount on the preferred stock, thereby reducing net income available to common shareholders by approximately $310,000 during the three months ended March 31, 2011. No preferred stock dividends have been paid and no discount accretion has been recorded during the twelve months ended September 30, 2012. The Company was able to repay TARP without raising additional capital, which would have been dilutive to shareholders.

Net income for the three months ended September 30, 2012 was $396,000, or $0.13 per basic common share and $0.12 per diluted common share, as compared to a net loss of $461,000 or ($0.15) per basic and diluted common share for the three months ended September 30, 2011.

During the three and twelve months ended September 30, 2012, earnings were favorably impacted by increases in net interest income, increases in non-interest income and reductions in loan loss provisions as compared to the same periods in the prior fiscal year. Non-interest expenses also decreased during the twelve months ended September 30, 2012 as compared with the same period in 2011 primarily due to successfully implemented expense reduction initiatives. The Company recorded Other Than Temporary Impairment ("OTTI") charges of $120,000 and $370,000 during the three and twelve months ended September 30, 2012, respectively, and charges of $200,000 and $300,000 during the three and twelve months ended September 30, 2011, respectively. These charges relate to certain private label collateralized mortgage obligations in the Company's mortgage-backed securities portfolio. Non-interest expenses increased slightly during the three months ended September 30, 2012 as compared with the same period in the prior year primarily due to $150,000 in provision for losses on premises during the current year. This provision resulted from the consolidation of two branch facilities expected to be completed by calendar year end.

President and Chief Executive Officer Joseph J. Bouffard commented, "We are pleased to report earnings of $1.8 million during our 2012 fiscal year despite ongoing economic challenges. During the year, notable progress has been made toward achieving several important goals. As a result, certain key components of operating results have improved, including increases in net interest income and non-interest income, along with decreases in operating expenses and loan loss provisions. There have also been encouraging trends related to asset quality, with reductions in charge-offs, nonaccrual loans and loan loss provisions. We remain focused on strengthening the Company and enhancing shareholder value."

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, 2011.  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)















September 30,



September 30,





2012



2011





(Dollars in thousands)

ASSETS













Cash equivalents and time deposits



$

50,924



$

60,108

Investment Securities, available for sale





4,628





6,919

Loans Receivable, net





335,616





364,843

Mortgage-backed Securities, available for sale





214,004





150,879

Foreclosed Real Estate





1,674





2,999

Premises and Equipment, net





10,288





9,932

Bank Owned Life Insurance





16,869





16,228

Other Assets





11,363





12,948

Total Assets



$

645,366



$

624,856





























LIABILITIES













Deposits



$

566,356



$

550,014

Junior Subordinated Debentures





17,011





17,011

Other Liabilities





6,593





5,872

Total Liabilities





589,960





572,897

Total Stockholders' Equity





55,406





51,959

Total Liabilities & Stockholders' Equity



$

645,366



$

624,856

 

 

Consolidated Statements of Operations
(Unaudited)

















Three Months ended

September 30,



Twelve Months ended

September 30,







2012



2011



2012



2011







(Dollars in thousands



(Dollars in thousands







except per share data)



except per share data)















Interest Income



$

6,464





$

6,608



$

26,071





$

26,935



Interest Expense





1,626







2,037





6,977







8,550



Net Interest Income





4,838







4,571





19,094







18,385



Provision for Loan Losses





300







1,300





1,200







2,100



Net Interest Income After Provision for Loan Losses





4,538







3,271





17,894







16,285



Total Non-Interest Income





486







282





2,450







2,002



Total Non-Interest Expenses





4,454







4,335





17,624







18,336



Income (Loss) Before Tax Expense (Benefit)





570







(782)





2,720







(49)



Income Tax Expense (Benefit)





174







(321)





920







(165)



Net Income (Loss)





396







(461)





1,800







116



Preferred Stock dividends and discount accretion





--







--





--







(573)



Net Income (Loss) available to common shareholders



$

396





$

(461)



$

1,800





$

(457)



































Basic Earnings (Loss) Per Common Share



$

0.13





$

(0.15)



$

0.58





$

(0.15)



































Diluted Earnings (Loss) Per Common Share



$

0.12





$

 

(0.15)



$

0.56





$

(0.15)



 

Summary of Financial Highlights
(Unaudited)











Three Months ended



Twelve Months ended



September 30,



September 30,



2012



2011



2012



2011

















Return (Loss) on Average Assets (Annualized)

0.25%



(0.29%)



0.28%



0.02%

Return (Loss) on Average Equity (Annualized)

2.90%



(3.55%)



3.39%



0.20%

















Interest Rate Spread

3.21%



3.09%



3.18%



3.10%

Net Interest Margin

3.24%



3.12%



3.21%



3.15%

















Efficiency Ratio

83.65%



89.32%



81.80%



89.94%

Ratio of Average Interest Earning Assets/Interest Bearing Liabilities

102.76%



102.69%



102.63%



103.44%

 

Tangible Book Value

(Unaudited)









At September 30,





At June 30,





At September 30,







2012





2012





2011









(Dollars in thousands except per share data)



























Tangible book value per common share:

























Total stockholders' equity



$

55,406





$

53,376





$

51,959



Less:  Intangible assets





(37)







(40)







(51)



Tangible common equity



$

55,369







53,336





$

51,908



Outstanding common shares





3,188,655







3,188,655







3,192,119





























Tangible book value per common share (1)



$

17.36





$

16.73





$

16.26

































(1)Tangible book value provides a measure of tangible equity on a per share basis. It is determined by methods other than in accordance with Accounting Principles Generally Accepted in the United States ("GAAP") and, as such, is considered to be a non-GAAP financial measure. Management believes the presentation of Tangible book value per common share is meaningful supplemental information for shareholders. We calculate Tangible book value per common share by dividing tangible common equity by common shares outstanding, as of period end.

 

 

Allowance for Loan Losses
(Unaudited)







Three Months ended

September 30,



Twelve Months ended

   September 30,







2012





2011



2012





2011







(Dollars in thousands)



(Dollars in thousands)















 

Allowance at Beginning of Period



$

5,249





$

3,876



$

4,768





$

6,634



 

Provision for Loan Losses





300







1,300





1,200







2,100



 

Recoveries





25







18





73







80



 

Charge-Offs





(104)







(426)





(571)







(4,046)



 

Allowance at End of Period



$

5,470





$

4,768



$

5,470





$

4,768



































 

Allowance for Loan Losses as a Percentage of Gross

   Loans





1.60%







1.29%





1.60%







1.29%





































 

Allowance for Loan Losses as a Percentage of

    Nonperforming Loans





27.64%







26.07%





27.64%







26.07%



 

 

Non-Performing Assets
(Unaudited)







At September 30, 2012



At June 30,

2012



At September 30,

2011





(Dollars in thousands)

























Nonaccrual Loans:























Commercial 



$

10,545





$

12,274





$

9,895

Residential Real Estate (1)





2,600







7,156







7,715

Consumer





--







--







20

Total Nonaccrual Loans (2)





13,145







19,430







17,630

Accruing Troubled Debt Restructurings





6,647







1,316







656

                    Total Nonperforming Loans





19,792







20,746







18,286

Foreclosed Real Estate





1,674







1,457







2,999

Total Nonperforming Assets



$

21,466





$

22,203





$

21,285

























Nonperforming Loans to Loans Receivable





5.90%







6.09%







5.01%

























Nonperforming Assets to Total Assets





3.33%







3.46%







3.41%



































(1) Includes owner occupied residential properties and investor owned residential rental properties.

(2)Nonaccrual status denotes loans on which, in the opinion of management, the collection of additional interest is questionable. Also included in this category at September 30, 2012 are $2.6 million in Troubled Debt Restructurings. Reporting guidance requires disclosure of these loans as nonaccrual until the loans have performed according to the modified terms for a sustained period. As of September 30, 2012, the Company had a total of $9.3 million in Troubled Debt Restructurings.

 

SOURCE BCSB Bancorp, Inc.

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