BCSB Bancorp, Inc. Reports Earnings For The Quarter And Year Ended September 30, 2013

 BCSB Bancorp, Inc. Reports Earnings For The Quarter And Year Ended September
                                   30, 2013

PR Newswire

BALTIMORE, Oct. 25, 2013

BALTIMORE, Oct. 25, 2013 /PRNewswire/ -- BCSB Bancorp, Inc. (the "Company")
(NASDAQ: BCSB), the holding company for Baltimore County Savings Bank,
reported net income of $443,000, or $0.14 per basic and $0.13 per diluted
share, for the three month period ended September 30, 2013, which represents
the fourth quarter of its 2013 fiscal year, as compared to net income of
$396,000, or $0.13 per basic share and $.12 per diluted share, for the three
months ended September 30, 2012. On June 14, 2013, the Company 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 year ended September 30, 2013 was $1,820,000, or $0.58 per
basic share and $0.56 per diluted share, as compared to net income of
$1,800,000, or $0.58 per basic share and $0.56 per diluted share for the year
ended September 30, 2012.

During the three and twelve months ended September 30, 2013, earnings were
favorably impacted by increases in non-interest income and decreases in
provision for loan losses and non-interest expenses as compared to the same
periods in the prior fiscal year. Net interest income also increased slightly
during the twelve months ended September 30, 2013 as compared to 2012.
Earnings for the three months ended September 30, 2013 were negatively
impacted by a decrease in net interest income as compared to the same period
in the prior fiscal year.

President and Chief Executive Officer Joseph J. Bouffard commented, "We have
had several major accomplishments during the current fiscal year ended
September 30, 2013. As stated above, we entered into a business combination
agreement with F.N.B. Net income during fiscal 2013 has improved compared with
fiscal 2012 despite almost $800,000 in merger related expenses during the
current year. Nonperforming assets have declined in each of the past four
consecutive quarters and have dropped by more than $4.2 million in the past
year, partly due to the disposition of nearly $900,000 of foreclosed real
estate during the quarter ended September 30, 2013. 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 are pleased to be able
to report these achievements 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 STATEMENTS

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)
                                                September 30,  September 30,
                                                2013           2012
                                                (in thousands)
ASSETS
Cash equivalents and time deposits              $   26,454     $   50,924
Investment Securities, available for sale           4,754          4,628
Loans Receivable, net                               324,136        335,616
Mortgage-backed Securities, available for sale      220,050        213,563
Foreclosed Real Estate                              2,861          1,674
Premises and Equipment, net                         9,908          10,288
Bank Owned Life Insurance                           17,473         16,869
Other Assets                                        13,405         11,537
Total Assets                                    $   619,041    $   645,099
LIABILITIES
Deposits                                        $   543,769    $   566,356
Junior Subordinated Debentures                      17,011         17,011
Other Liabilities                                   8,461          6,593
Total Liabilities                                   569,241        589,960
Total Stockholders' Equity                          49,800         55,139
Total Liabilities & Stockholders' Equity        $   619,041    $   645,099



Consolidated Statements of Operations

(Unaudited)
                              Three Months ended        Twelve Months ended

                              September 30,             September 30,
                              2013             2012     2013            2012
                              (in thousands             (in thousands
                              except per share data)    except per share data)
Interest Income             $ 5,833        $   6,464  $ 24,438      $   26,071
Interest Expense              1,231            1,626    5,322           6,977
Net Interest Income           4,602            4,838    19,116          19,094
Provision for Loan Losses     0                300      1,100           1,200
Net Interest Income After     4,602            4,538    18,016          17,894
Provision for Loan Losses
Total Non-Interest Income     501              486      2,533           2,450
Total Non-Interest Expenses   4,082            4,454    17,406          17,624
Income Before Income Tax      1,021            570      3,143           2,720
Expense
Income Tax Expense            578              174      1,323           920
Net Income                  $ 443          $   396    $ 1,820       $   1,800
Basic Net Income Per Share  $ 0.14         $   0.13   $ 0.58        $   0.58
Diluted Net Income Per      $ 0.13         $   0.12   $ 0.56        $   0.56
Share



Summary of Financial Highlights

(Unaudited)
                                       Three Months ended  Twelve Months ended

                                       September 30,       September 30,
                                       2013       2012     2013       2012
Return on Average Assets (Annualized)  0.28%      0.25%    0.28%      0.28%
Return on Average Equity (Annualized)  3.59%      2.90%    3.27%      3.34%
Interest Rate Spread                   3.17%      3.21%    3.19%      3.18%
Net Interest Margin                    3.18%      3.24%    3.21%      3.21%
Efficiency Ratio                       79.99%     83.65%   80.40%     81.80%
Ratio of Average Interest Earning
Assets/Interest                        101.66%    102.76%  102.90%    102.63%

 Bearing Liabilities



^

Tangible Book Value
(Unaudited)
                                                                    At
                       At September 30,           At June 30,       September
                                                                    30,
                       2013                       2013              2012
                       (Dollars in thousands except per share data)
Tangible book
value per common
share:
Total
stockholders'      $   49,800                 $   51,626         $  55,139
equity
Less: Intangible       (25)                       (28)              (37)
assets
Tangible common    $   49,775                     51,598         $  55,102
equity
Outstanding common     3,190,430                  3,189,668         3,188,655
shares
Tangible book
value per common   $   15.60                  $   16.18          $  17.28
share ^(1)
^(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 an unrealized 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, net of income tax. 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       Twelve Months ended

                               September 30,            September 30,
                                  2013         2012        2013         2012
                               (Dollars in thousands)   (Dollars in thousands)
Allowance at Beginning of      $  5,669      $ 5,249    $  5,470      $ 4,768
Period
Provision for Loan Losses         0            300         1,100        1,200
Recoveries                        12           25          82           73
Charge-Offs                       (77)         (104)       (1,048)      (571)
Allowance at End of Period     $  5,604      $ 5,470    $  5,604      $ 5,470
Allowance for Loan Losses as a    1.70%        1.60%       1.70%        1.60%
Percentage of Gross Loans
Allowance for Loan Losses as a
Percentage of Nonperforming       38.81%       27.64%      38.81%       27.64%
Loans



Non-Performing Assets

(Unaudited)
                          At September30,     At June 30,      At September
                                                                30,
                          2013                 2013
                                                                2012
                          (Dollars in thousands)
Nonaccrual Loans:
Commercial               $      4,567         $     4,773      $    10,545
Residential Real Estate          3,873               3,347           2,600
(1)
Consumer                         --                  --              --
Total Nonaccrual Loans           8,440               8,120           13,145
(2)
Accruing Troubled Debt           5,999               6,131           6,647
Restructurings
 Total        14,439              14,251          19,792
Nonperforming Loans
Nonperforming Foreclosed         2,808               3,259           1,674
Real Estate (3)
Total Nonperforming       $      17,247        $     17,510     $    21,466
Assets
Nonperforming Loans to           4.38%               4.43%           5.90%
Gross Loans Receivable
Nonperforming Assets to          2.79%               2.74%           3.33%
Total Assets
(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 September 30, 2013 is $1.2 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, 2013, the Company had a total of $7.2
million in Troubled Debt Restructurings, $6.0 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 are not considered to be a classified asset. As of
September 30, 2013, the Company has identified $53 thousand in foreclosed real
estate meeting these criteria. Accordingly, this amount has been excluded from
nonperforming assets.



SOURCE BCSB Bancorp, Inc.

Website: http://www.baltcosavings.com
Contact: Joseph J. Bouffard, (410) 248-9130, BCSB Bancorp, Inc., Baltimore
County Savings Bank
 
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