BCSB Bancorp, Inc. Reports Results For The First Quarter Ended
December 31, 2012
BALTIMORE, Jan. 25, 2013 /PRNewswire/ -- BCSB Bancorp,
Inc. (the "Company") (NASDAQ: BCSB), the holding company for
Baltimore County Savings Bank (the "Bank") reported net income of
$639,000 or $0.21 per basic share and $.20 per diluted share for the three months ended
December 31, 2012, which represents
the first quarter of its 2013 fiscal year. This compares to net
income of $462,000 or $0.15 per basic and diluted share for the three
months ended December 31, 2011.
During the three months ended December
31, 2012, earnings were favorably impacted primarily by
higher net interest income and increased non-interest income as
compared to the corresponding period during the prior fiscal year.
Earnings were negatively affected by increased provision for loan
losses as compared with the three months ended December 31, 2011.
The increase in net interest income during the three months
ended December 31, 2012 as compared
to the three months ended December 31,
2011 was primarily due to declining cost of funds on the
deposit portfolio, partially offset by lower interest income from
the Company's loan portfolio, which declined by approximately
$26 million during the twelve months
ended December 31,
2012.
Non-interest income during the three months ended December 31, 2012 improved in comparison with the
three months ended December 31, 2011
partly due to prepayment fees received as certain loans paid off
prior to scheduled maturity. The Company also experienced increased
commission income from sales of investment products during the
current period.
The increase in loan loss provisions during the three months
ended December 31, 2012 as compared
to the prior year was directly related to declines is estimated
realizable values of certain problem loans, primarily investor
rental properties. The Company also experienced $0.5 million of net charge-offs during the three
months ended December 31, 2012,
primarily due to the transfer of a $1.5
million land acquisition and development loan to Foreclosed
Real Estate, for which specific loan loss reserves had already been
established. Specifically allocated loan loss reserves are
charged-off as properties are foreclosed upon.
President and Chief Executive Officer Joseph J. Bouffard commented "Earnings continued
to show improvement during the quarter ended December 31, 2012, as was also the case during
our most recent fiscal year ended September
30, 2012. Our interest rate spread has improved and
operating expenses remain manageable. Notable declines in
nonperforming loans and Troubled Debt Restructurings have been
achieved as we push hard to resolve problem assets. We remain
focused on the Company's earnings and asset quality with the
ultimate goal of improved 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, 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)
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December
31,
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September
30,
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2012
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2012
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(Dollars
in thousands)
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ASSETS
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Cash
equivalents and time deposits
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$
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59,370
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$
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50,924
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Investment
Securities, available for sale
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4,801
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4,628
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Loans
Receivable, net
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329,298
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335,616
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Mortgage-backed Securities, available for
sale
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209,018
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213,563
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Foreclosed
Real Estate
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3,370
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1,674
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Premises
and Equipment, net
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10,183
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10,288
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Bank Owned
Life Insurance
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17,007
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16,869
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Other
Assets
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10,966
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11,537
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Total
Assets
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$
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644,013
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$
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645,099
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LIABILITIES
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Deposits
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$
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563,992
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$
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566,356
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Junior
Subordinated Debentures
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17,011
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17,011
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Other
Liabilities
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7,395
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6,593
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Total
Liabilities
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588,398
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589,960
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Total
Stockholders' Equity
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55,615
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55,139
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Total
Liabilities & Stockholders' Equity
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$
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644,013
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$
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645,099
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Consolidated Statements of Operations
(Unaudited)
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Three
Months ended
December
31,
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2012
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2011
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(Dollars
in thousands except per share data)
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Interest
income
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$
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6,598
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$
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6,701
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Interest
expense
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1,484
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1,931
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Net
interest income
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5,114
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4,770
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Provision
for loan losses
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500
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300
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Net
interest income after provision for loan losses
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4,614
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4,470
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Total
non-interest income
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665
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544
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Total
non-interest expenses
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4,267
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4,315
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Income
before income tax expense
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1,012
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699
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Income tax
expense
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373
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237
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Net
income
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$
|
639
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$
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462
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Basic
Earnings per Share
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$
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0.21
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$
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0.15
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Diluted
Earnings per Share
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$
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0.20
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$
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0.15
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Summary of
Financial Highlights
(Unaudited)
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Three
Months ended
December
31,
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2012
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2011
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Return on
average assets (annualized)
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0.40%
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0.29%
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Return on
average equity (annualized)
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4.61%
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3.55%
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Interest
rate spread
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3.36%
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3.24%
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Net
interest margin
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3.39%
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3.26%
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Efficiency
ratio
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73.8%
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81.2%
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Ratio of
average interest earning assets/interest
bearing liabilities
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103.4%
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102.0%
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Tangible
Book Value
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(Unaudited)
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At
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At
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At
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December
31,
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September 30,
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December
31,
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2012
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2012
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2011
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(Dollars
in thousands except per share data)
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Tangible
book value per common share:
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Total
stockholders' equity
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$
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55,615
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$
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55,139
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$
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52,154
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Less: Intangible assets
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(34)
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(37)
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(46)
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Tangible
common equity
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$
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55,581
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55,102
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$
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52,108
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Outstanding common shares
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3,188,655
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3,188,655
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3,188,665
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Tangible
book value per common share (1)
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$
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17.43
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$
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17.28
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$
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16.34
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(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.
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Allowance
for Loan Losses
(Unaudited)
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Three
Months ended
December
31,
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2012
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2011
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(Dollars
in thousands)
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Allowance
at beginning of period
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$
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5,470
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$
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4,768
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Provision
for loan losses
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500
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300
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Recoveries
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23
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12
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Charge-offs
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(505)
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(16)
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Allowance
at end of period
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$
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5,488
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$
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5,064
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Allowance
for loan losses as a percentage of gross
loans
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1.64%
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1.40%
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Allowance
for loan losses to nonperforming loans
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37%
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29%
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Non-Performing Assets
(Unaudited)
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At
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At
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At
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December 31, 2012
|
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September
30,
2012
|
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December
31, 2011
|
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(Dollars
in thousands)
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Nonaccrual
Loans:
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Commercial
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$
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5,914
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$
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10,545
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$
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9,070
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Residential Real Estate (1)
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3,447
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2,600
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6,968
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Consumer
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--
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--
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20
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Total Nonaccrual Loans (2)
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9,361
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13,145
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16,058
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Accruing
Troubled Debt Restructurings
|
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5,493
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6,647
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1,133
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Total Nonperforming Loans
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14,854
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19,792
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17,191
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Foreclosed
Real Estate
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3,370
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1,674
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1,275
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Total Nonperforming Assets
|
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$
|
18,224
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$
|
21,466
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$
|
18,466
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Nonperforming Loans to Loans Receivable
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4.51%
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5.90%
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4.84%
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Nonperforming Assets to Total Assets
|
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2.83%
|
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3.33%
|
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2.87%
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(1)
Includes residential owner occupied properties and residential
rental investor properties.
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(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 December 31, 2012 are $1.0
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 December 31, 2012, the Company had a total of $6.5
million in Troubled Debt Restructurings of which $6.2 million are
performing according to their restructured terms.
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SOURCE BCSB Bancorp, Inc.