BCSB Bancorp, Inc. Completes Sale of $10.8 Million in Preferred Stock Under the Treasury's Capital Purchase Program
24 December 2008 - 8:00AM
PR Newswire (US)
BALTIMORE, Dec. 23 /PRNewswire-FirstCall/ -- BCSB Bancorp, Inc.
(NASDAQ: BCSB) the parent company of Baltimore County Savings Bank,
F.S.B., announced today that it issued 10,800 shares of Fixed Rate
Cumulative Perpetual Preferred Stock under the TARP Capital
Purchase Program for $10.8 million to the U.S. Treasury. The
investment represents 3% of the company's total risk-weighted
assets as of September 30, 2008. The preferred stock carries a 5%
annual dividend yield for five years, and 9% thereafter. In
addition, the U.S. Treasury also received a warrant to purchase up
to 183,465 shares of Bancorp common stock at an exercise price of
$8.83. President Joseph J. Bouffard said, "This infusion of capital
provides an additional measure of liquidity that will enable us to
help both new and existing loan and deposit customers manage
through these difficult times as well as enable us to continue our
long-term initiatives." As of September 30, 2008, BCSB Bancorp's
capital position was "well capitalized" by all regulatory
standards. With the full amount of Treasury's investment, BCSB
Bancorp's total risk-based capital ratio would exceed 16.5%.
Founded in 1955, Baltimore County Savings Bank operates under its
holding company, BCSB Bancorp, Inc. Baltimore County Savings Bank
provides regional community banking solutions through 18 locations
across the Baltimore metropolitan area. For more information, visit
http://www.baltcosavings.com/. 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 or national
economic factors, legislative and regulatory changes that could
adversely affect the business in which BCSB Bancorp and Baltimore
County Savings Bank are engaged, actual deposit levels at the time
future FDIC assessments are calculated, the FDIC's future
assessment rates and the FDIC's future assessments of the Bank's
risk profile. 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. DATASOURCE: BCSB Bankcorp, Inc. CONTACT: Joseph J.
Bouffard of BCSB Bancorp, Inc., +1-410-256-5000 Web Site:
http://www.baltcosavings.com/
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