BALTIMORE, July 26, 2013 /PRNewswire/ -- BCSB Bancorp, Inc.
(the "Company") (NASDAQ: BCSB), the holding company for Baltimore
County Savings Bank, reported net income of $436,000, or $0.14
per basic and diluted share, for the three month period ended
June 30, 2013, which represents the
third quarter of its 2013 fiscal year, as compared to net income of
$368,000, or $0.11 per basic and diluted share, for the three
months ended June 30, 2012. On
June 14, 2013, the Company also
announced that it entered into an Agreement and Plan of Merger with
F.N.B. Corporation ("F.N.B."), whereby the Company will merge with
and into F.N.B. Also, the Company's subsidiary bank,
Baltimore County Savings Bank, will merge with and into F.N.B.'s
subsidiary bank, First National Bank of Pennsylvania. The mergers are expected
to close during the first quarter of calendar year 2014.
Net income for the nine months ended June
30, 2013 was $1,378,000, or
$0.44 per basic share and
$0.43 per diluted share, as compared
to net income of $1,404,000, or
$0.45 per basic share and
$0.44 per diluted share for the nine
months ended June 30, 2012.
During the three and nine months ended June 30, 2013, earnings were favorably impacted
by increases in non-interest income as compared to the same periods
in the prior fiscal year primarily due to gain on sale of a branch
building during 2013, combined with Other Than Temporary Impairment
charges incurred during the same period in 2012. Deposits
from the closed branch were consolidated with another existing
location. During the three months ended June
30, 2013, earnings also increased in part due to a decrease
in the provision for loan losses and, during the nine months ended
June 30, 2013, earnings were
favorably impacted by an increase in net interest income. Earnings
for the three and nine months ended June 30,
2013 were negatively impacted by increases in non-interest
expenses, primarily due to merger-related costs totaling
approximately $280,000. During
the three months ended June 30, 2013,
earnings were reduced by a moderate decrease in net interest
income.
President and Chief Executive Officer Joseph J. Bouffard commented, "During the past
three months, we have improved profitability and executed several
major transactions, all considered by our management and Board of
Directors to be very positive for the Company and our shareholders.
As stated above, we entered into a business combination
agreement with F.N.B. We repurchased for $1,442,000 from the U.S. Treasury a TARP-related
stock warrant to purchase 183,465 shares of the Company's common
stock, which equals a purchase price of approximately $7.85 per share. As a result, we have now
completely exited the TARP Capital Purchase Program without having
to raise any additional capital, which would have been dilutive to
our shareholders. We also sold a building previously operated as a
branch office, resulting in a pretax gain of approximately
$114,000. And we have entered into
contracts to dispose of nearly $900,000 of foreclosed real estate, which will
impact our NPAs in a favorable way. We are pleased to be able to
report these very positive developments and appreciate your
continued support."
ADDITIONAL INFORMATION ABOUT THE MERGER AND WHERE TO FIND
IT
F.N.B. Corporation will file a registration statement on Form
S-4 with the Securities and Exchange Commission (the "SEC").
The registration statement will include a proxy
statement/prospectus and other relevant documents with the SEC in
connection with the merger.
SHAREHOLDERS OF BCSB BANCORP, INC. ARE ADVISED TO READ THE PROXY
STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER
RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR
SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION.
The proxy statement/prospectus and other relevant materials
(when they become available), and any other documents F.N.B. and
BCSB Bancorp, Inc. have filed with the SEC, may be obtained free of
charge at the SEC's website at www.sec.gov. In addition,
investors and security holders may obtain free copies of the
documents F.N.B. has filed with the SEC by contacting James Orie, Chief Legal Officer, F.N.B.
Corporation, One F.N.B. Boulevard, Hermitage, PA 16148, telephone: (724) 983-3317
and free copies of the documents BCSB Bancorp, Inc. has filed with
the SEC by contacting Joseph J.
Bouffard, President and Chief Executive Officer, BCSB
Bancorp, Inc., 4111 East Joppa Road, Baltimore, MD 21236, telephone: (410)
256-5000.
F.N.B. and BCSB Bancorp, Inc. and certain of their directors and
executive officers may be deemed to be participants in the
solicitation of proxies from BCSB Bancorp, Inc. shareholders in
connection with the proposed merger. Information concerning such
participants' ownership of BCSB Bancorp, Inc. common shares will be
set forth in the proxy statement/prospectus relating to the merger
when it becomes available. This communication does not constitute
an offer of any securities for sale.
FORWARD-LOOKING STATEMENT
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, 2012.
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)
|
|
|
|
June 30,
|
|
September
30,
|
|
|
2013
|
|
2012
|
|
|
(in
thousands)
|
ASSETS
|
|
|
|
|
|
|
Cash equivalents and
time deposits
|
|
$
|
39,225
|
|
$
|
50,924
|
Investment
Securities, available for sale
|
|
|
4,726
|
|
|
4,628
|
Loans Receivable,
net
|
|
|
316,324
|
|
|
335,616
|
Mortgage-backed
Securities, available for sale
|
|
|
234,130
|
|
|
213,563
|
Foreclosed Real
Estate
|
|
|
3,768
|
|
|
1,674
|
Premises and
Equipment, net
|
|
|
10,049
|
|
|
10,288
|
Bank Owned Life
Insurance
|
|
|
17,352
|
|
|
16,869
|
Other
Assets
|
|
|
12,348
|
|
|
11,537
|
Total
Assets
|
|
$
|
637,922
|
|
$
|
645,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits
|
|
$
|
560,464
|
|
$
|
566,356
|
Junior Subordinated
Debentures
|
|
|
17,011
|
|
|
17,011
|
Other
Liabilities
|
|
|
8,821
|
|
|
6,593
|
Total
Liabilities
|
|
|
586,296
|
|
|
589,960
|
Total Stockholders'
Equity
|
|
|
51,626
|
|
|
55,139
|
Total Liabilities
& Stockholders' Equity
|
|
$
|
637,922
|
|
$
|
645,099
|
Consolidated
Statements of Operations
(Unaudited)
|
|
|
|
Three Months ended
June 30,
|
|
Nine Months ended
June 30,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
2013
|
|
|
|
2012
|
|
|
(in
thousands
|
|
(in
thousands
|
|
|
except per share
data)
|
|
except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Income
|
$
|
5,908
|
|
|
$
|
6,392
|
|
$
|
18,606
|
|
|
$
|
19,607
|
|
Interest
Expense
|
|
1,266
|
|
|
|
1,667
|
|
|
4,091
|
|
|
|
5,351
|
|
Net Interest
Income
|
|
4,642
|
|
|
|
4,725
|
|
|
14,515
|
|
|
|
14,256
|
|
Provision for Loan
Losses
|
|
150
|
|
|
|
300
|
|
|
1,100
|
|
|
|
900
|
|
Net Interest Income
After Provision for Loan Losses
|
|
4,492
|
|
|
|
4,425
|
|
|
13,415
|
|
|
|
13,356
|
|
Total Non-Interest
Income
|
|
699
|
|
|
|
349
|
|
|
2,031
|
|
|
|
1,964
|
|
Total Non-Interest
Expenses
|
|
4,519
|
|
|
|
4,192
|
|
|
13,324
|
|
|
|
13,170
|
|
Income Before Income
Tax Expense
|
|
672
|
|
|
|
582
|
|
|
2,122
|
|
|
|
2,150
|
|
Income Tax
Expense
|
|
236
|
|
|
|
214
|
|
|
744
|
|
|
|
746
|
|
Net Income
|
$
|
436
|
|
|
$
|
368
|
|
$
|
1,378
|
|
|
$
|
1,404
|
|
|
|
Basic Net Income Per
Share
|
$
|
0.14
|
|
|
$
|
0.11
|
|
$
|
0.44
|
|
|
$
|
0.45
|
|
|
Diluted Net Income
Per Share
|
$
|
0.14
|
|
|
$
|
0.11
|
|
$
|
0.43
|
|
|
$
|
0.44
|
|
|
Three Months
ended
June 30,
|
|
Nine Months
ended
June 30,
|
|
2013
|
|
|
2012
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Assets (Annualized)
|
0.27%
|
|
|
0.23%
|
|
0.29%
|
|
|
0.29%
|
Return on Average
Equity (Annualized)
|
3.12%
|
|
|
2.76%
|
|
3.27%
|
|
|
3.55%
|
|
|
|
|
|
|
|
|
|
|
Interest Rate
Spread
|
3.12%
|
|
|
3.16%
|
|
3.20%
|
|
|
3.20%
|
Net Interest
Margin
|
3.14%
|
|
|
3.18%
|
|
3.23%
|
|
|
3.23%
|
|
|
|
|
|
|
|
|
|
|
Efficiency
Ratio
|
84.61%
|
|
|
82.62%
|
|
80.53%
|
|
|
81.20%
|
Ratio of Average
Interest Earning
Assets/Interest Bearing Liabilities
|
102.13%
|
|
|
102.49%
|
|
103.33%
|
|
|
102.23%
|
Tangible Book
Value
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June
30,
|
|
|
At September 30,
|
|
|
At June
30,
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
|
51,626
|
|
|
$
|
55,139
|
|
|
$
|
53,376
|
Less:
Intangible assets
|
|
|
(28)
|
|
|
|
(37)
|
|
|
|
(40)
|
Tangible common
equity
|
|
$
|
51,598
|
|
|
|
55,102
|
|
|
$
|
53,336
|
Outstanding common
shares
|
|
|
3,189,668
|
|
|
|
3,188,655
|
|
|
|
3,188,655
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share (1)
|
|
$
|
16.18
|
|
|
$
|
17.28
|
|
|
$
|
16.73
|
|
(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 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. The decline in equity
and book value per common share during the 2013 fiscal year is
primarily attributable to a decrease in market values of the
Company's mortgage-backed securities portfolio due to recent
interest rate increases. Unrealized gains and losses on such
securities are reflected in Stockholders' Equity through
Accumulated Other Comprehensive Income. To a lesser extent, the
Company's repurchase of its TARP related stock warrant from the
U.S. Treasury also contributed to the decrease.
|
Allowance for Loan
Losses
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
ended
June 30,
|
|
|
Nine Months
ended
June 30,
|
|
|
2013
|
|
|
|
2012
|
|
|
2013
|
|
|
|
2012
|
|
|
(Dollars in
thousands)
|
|
|
(Dollars in
thousands)
|
Allowance at
Beginning of Period
|
$
|
5,543
|
|
|
$
|
5,378
|
|
$
|
5,470
|
|
|
$
|
4,768
|
Provision for Loan
Losses
|
|
150
|
|
|
|
300
|
|
|
1,100
|
|
|
|
900
|
Recoveries
|
|
31
|
|
|
|
19
|
|
|
70
|
|
|
|
48
|
Charge-Offs
|
|
(55)
|
|
|
|
(448)
|
|
|
(971)
|
|
|
|
(467)
|
Allowance at End of
Period
|
$
|
5,669
|
|
|
$
|
5,249
|
|
$
|
5,669
|
|
|
$
|
5,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan
Losses as a Percentage
of
Gross Loans
|
|
1.76%
|
|
|
|
1.52%
|
|
|
1.79%
|
|
|
|
1.52%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan
Losses as a Percentage
of
Nonperforming Loans
|
|
39.8%
|
|
|
|
25.3%
|
|
|
39.8%
|
|
|
|
25.3%
|
Non-Performing
Assets
(Unaudited)
|
|
|
|
At June
30,
2013
|
|
|
|
At September
30,
2012
|
|
|
|
At June
30,
2012
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
Loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
|
4,773
|
|
|
$
|
10,545
|
|
|
$
|
12,274
|
Residential Real
Estate (1)
|
|
3,347
|
|
|
|
2,600
|
|
|
|
7,156
|
Consumer
|
|
--
|
|
|
|
--
|
|
|
|
--
|
Total
Nonaccrual Loans (2)
|
|
8,120
|
|
|
|
13,145
|
|
|
|
19,430
|
Accruing Troubled
Debt Restructurings
|
|
6,131
|
|
|
|
6,647
|
|
|
|
1,316
|
Total Nonperforming Loans
|
|
14,251
|
|
|
|
19,792
|
|
|
|
20,746
|
Nonperforming
Foreclosed Real Estate (3)
|
|
3,259
|
|
|
|
1,674
|
|
|
|
1,457
|
Total
Nonperforming Assets
|
$
|
17,510
|
|
|
$
|
21,466
|
|
|
$
|
22,203
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans
to Gross Loans Receivable
|
|
4.43%
|
|
|
|
5.90%
|
|
|
|
6.09%
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets
to Total Assets
|
|
2.74%
|
|
|
|
3.33%
|
|
|
|
3.46%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
residential owner occupied properties and residential rental
investor 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 June 30, 2013 is $108,000 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 June 30, 2013, the
Company had a total of $6.2 million in Troubled Debt
Restructurings, $6.1 million of which were accounted for on an
accrual basis for interest income.
(3) Regulatory
guidance provides that residential rental foreclosed real estate
with leases in place and demonstrated cash flow generating a
reasonable rate of return generally is not considered to be a
classified asset. As of June 30, 2013, the Company has identified
$508,000 in foreclosed real estate meeting these criteria.
Accordingly, this amount has been excluded from nonperforming
assets.
|
SOURCE BCSB Bancorp, Inc.