BSB Bancorp, Inc. Announces First Quarter Earnings.Business Editors BINGHAMTON Binghamton (bĭng`əmtən), industrial city (1990 pop. 53,008), seat of Broome co., S central N.Y., at the confluence of the Chenango and the Susquehanna rivers; settled 1787, inc. as a city 1867. , N.Y.--(BUSINESS WIRE)--April 19, 2001 BSB BSB Backstreet Boys BSB Bayerische Staatsbibliothek BSB British Superbikes (motorcycle racing series) BSB Bachelor of Science in Business BSB Bandar Seri Begawan (capital of Brunei) Bancorp, Inc. (NASDAQ/NMS:BSBN BSBN Baltic Sea Business Network BSBN Bu Sa Bum Nim ), holding company for BSB Bank & Trust Company, announced net income for the quarter ended March 31, 2001 of $5,003,000, or $0.49 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a loss of $8,131,000, or $0.79 per diluted share for the fourth quarter of 2000, and net income of $5,748,000, or $0.56 per diluted share, for the same quarter in 2000. Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. W. Sharp, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Bank said, "While we are satisfied at meeting our earnings expectations, we will continue to focus on increasing return to shareholders. Consistent with our expectations when we significantly increased our loan loss reserves in the fourth quarter last year, non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. rose during the quarter. However, we have begun to see some decline in delinquencies. "The formation of a special assets group was completed during the quarter. This group's task will be to manage and dispose of dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. problem assets. "We previously announced the hiring of a senior risk manager who during the quarter has completely revamped the bank's lending policies. Along with the hiring of additional relationship managers, I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in confident the steps we have taken to improve credit underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. are sufficient to protect asset quality in the future. I also believe the combination of improvements to our loan review and risk rating process ensures that our current levels of loan loss reserves are adequate." Net interest income was $20,648,000 for the first quarter of 2001, compared to $21,877,000 for the fourth quarter of 2000, and $22,379,000 for the first quarter of 2000. The decrease in net interest income from the fourth quarter of 2000 to the first quarter of 2001 was primarily the result of lower short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. which reduces the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. yield on the Bank's loans that are tied to a prime rate. The lower net interest income for the first quarter of 2001 compared to the first quarter of 2000, was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the higher levels of non-performing loans and higher costs of funding in 2001. The provision for credit losses was $4,674,000 for the quarter ended March 31, 2001, $26,913,000 for the fourth quarter of 2000, and $4,608,000 for the quarter ended March 31, 2000. As contemplated by our actions in the fourth quarter, non-performing assets increased to $58,233,000 at March 31, 2001, compared to $32,461,000 at December December: see month. 31, 2000, and $12,229,000 at March 31, 2000. The allowance for possible credit losses increased to $61,423,000, or 3.46% of period-end loans outstanding at March 31, 2001, from $59,291,000, or 3.26% of period-end loans outstanding at December 31, 2000, and $31,705,000, or 1.82% of period-end loans outstanding at March 31, 2000. Net charge-offs during the first quarter of 2001 amounted to $2,542,000, or 0.57% of average gross loans outstanding, compared to $9,378,000, or 2.07% of average gross loans outstanding during the fourth quarter, and $2,037,000, or 0.47% of average gross loans outstanding in the first quarter of 2000. Non-performing loans at March 31, 2001 were $57,771,000, or 3.26% of total gross loans outstanding, compared to $32,138,000, or 1.77% of gross loans outstanding at December 31, 2000, and $11,485,000, or 0.66% of total gross loans outstanding at March 31, 2000. Non-interest income amounted to $2,743,000 for the first quarter of 2001 compared to $3,138,000 for the fourth quarter of 2000, and $3,354,000 for the first quarter of 2000. Operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. for the first quarter of 2001 was $10,697,000 compared to $11,364,000 for the fourth quarter of 2000, and $11,713,000 for the first quarter of 2000. The outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. of the Bank's merchant credit card activity, which started in December of 2000, resulted in nearly offsetting declines of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $400,000 in both non-interest income and operating expense. The Bank's Efficiency Ratio, which consists of operating expense divided by recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues (net interest income and non-interest income) on a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta basis, remains very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. compared to the Bank's peer group, at 45.73% for the first quarter of 2001, 45.43% for the fourth quarter of 2000, and 45.52% for the first quarter of 2000. Total assets were $2,270,824,000 at March 31, 2001, $2,311,675,000 at December 31, 2000, and $2,230,864,000 at March 31, 2000. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $155,508,000, or 6.85% of assets, at March 31, 2001, $155,785,000, or 6.74% of assets at December 31, 2000, and $157,016,000, or 7.04% of assets at March 31, 2000. Book value per share was $15.56 at March 31, 2001, $15.08 at December 31, 2000, and $15.31 at March 31, 2000. Gross loans were $1,774,278,000 at March 31, 2001, $1,820,267,000 at December 31, 2000, and $1,745,382,000 at March 31, 2000. Total deposits were $1,785,033,000 at March 31, 2001, $1,881,226,000 at December 31, 2000, and $1,899,278,000 at March 31, 2000. The decline in deposits from March 31, 2000 to March 31, 2001 was primarily the result of the Bank decreasing its' high cost wholesale money desk deposits from $191,289,000 at March 31, 2000 to $79,319,000 at March 31, 2001. Total borrowings increased to $284,848,000 at March 31, 2001 from $225,468,000 at December 31, 2000, and $135,982,000 at March 31, 2000, as higher cost wholesale deposits were replaced with lower cost borrowed funds.
BSB Bancorp, Inc.
Quarters Ended March 31, December 31, March 31,
2001 2000 2000
Net Income (Loss) $5,003,000 $(8,131,000) $5,748,000
Earnings Per Share
Basic $0.49 $(0.79) $0.56
Diluted $0.49 $(0.79) $0.56
BSB BANCORP, INC. (In Thousands, Except Share Amounts)
FINANCIAL HIGHLIGHTS
Three Months Ended
March 31, December 31, March 31,
OPERATIONS DATA 2001 2000 2000
Total interest income $46,035 $49,110 $46,280
Total interest expense 25,387 27,233 23,901
Net interest income 20,648 21,877 22,379
Provision for credit losses 4,674 26,913 4,608
Gains (losses) on sale of
securities 67 0 0
Gains (losses) on sale of loans 19 26 7
Non-interest income 2,743 3,138 3,354
Operating expense 10,697 11,364 11,713
Income tax expense 3,103 (5,105) 3,671
Net income (loss) 5,003 (8,131) 5,748
SELECTED FINANCIAL DATA
Yield on earning assets (1) 8.56% 9.06% 8.72%
Cost of funds (1) 4.84 5.17 4.64
Interest rate spread during
the period (1) 3.72 3.89 4.08
Interest rate margin during
the period (1) 3.84 4.04 4.22
Return on average assets (1) 0.88 (1.42) 1.03
Return on average equity (1) 12.69 (19.78) 14.81
Equity to assets (2) 6.85 6.74 7.04
Operating expenses to average
assets (1) 1.88 1.99 2.10
Efficiency ratio 45.73 45.43 45.52
PER SHARE DATA
Basic earnings $ 0.49 $ (0.79) $ 0.56
Fully diluted $ 0.49 $ (0.79) $ 0.56
Book value (2) $ 15.56 $ 15.08 $ 15.31
Dividends paid $ 0.25 $ 0.25 $ 0.25
Dividend payout ratio 51.09% (31.84)% 44.56%
(1) Annualized
(2) At period ended
March 31, December 31, March 31,
FINANCIAL CONDITION DATA at 2001 2000 2000
Assets $2,270,824 $2,311,675 $2,230,864
Earning assets 2,141,316 2,163,590 2,110,037
Gross loans 1,774,278 1,820,267 1,745,382
Allowance for possible
credit losses (61,423) (59,291) (31,705)
Gross investment securities 417,161 404,958 414,164
Unrealized depreciation
in AFS securities 2,328 (3,282) (18,382)
Deposits 1,785,033 1,881,226 1,899,278
Borrowings 284,848 225,468 135,982
Subordinated debt 30,000 30,000 30,000
Shareholders' equity 155,508 155,785 157,016
Non-performing loans 57,771 32,138 11,485
Loans, 30-89 days past due 35,577 66,490 22,630
Other real estate 462 323 744
Trust assets 314,813 329,498 348,423
Serviced loans 504,390 516,725 554,815
AVERAGE BALANCES - YTD
Assets $2,278,727 $2,262,762 $2,230,481
Earning assets 2,151,875 2,137,706 2,103,678
Gross loans 1,789,355 1,780,105 1,731,556
Allowance for possible
credit losses (60,433) (35,898) (31,204)
Gross investment securities 421,204 407,520 419,752
Unrealized depreciation
in AFS securities (527) (16,208) (18,852)
Deposits 1,802,873 1,891,267 1,887,463
Borrowings 266,574 165,675 141,574
Subordinated debt 30,000 30,000 30,000
Shareholders' equity 157,737 160,625 155,276
Shares outstanding 10,193,563 10,279,667 10,243,073
Diluted shares outstanding 10,268,550 10,357,169 10,336,936
BSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
March 31, December 31, March 31,
(Dollars in Thousands, 2001 2000 2000
Except Share Data)
(unaudited) (unaudited)
ASSETS
Cash and due from banks $ 51,782 $ 65,110 $ 47,718
Federal funds sold 8,000
Total cash and cash
equivalents 59,782 65,110 47,718
Investment securities
available for sale 410,136 391,968 382,703
Investment securities
held to maturity 9,353 9,708 13,079
Mortgages held for sale 215 94
Loans:
Commercial 965,333 997,082 937,426
Consumer 418,347 436,902 457,724
Real estate 390,598 386,283 350,232
Total loans 1,774,278 1,820,267 1,745,382
Less: Net deferred costs (757) (844) (577)
Allowance for possible
credit losses 61,423 59,291 31,705
Net loans 1,713,612 1,761,820 1,714,254
Bank premises and equipment 14,425 14,418 15,541
Accrued interest receivable 15,193 17,002 14,886
Other real estate 462 323 744
Intangible assets 1,116 1,213 1,502
Other assets 46,530 50,019 40,437
$2,270,824 $2,311,675 $2,230,864
LIABILITIES & SHAREHOLDERS'
EQUITY
Due to depositors $1,785,033 $1,881,226 $1,899,278
Borrowings 284,848 225,468 135,982
Other liabilities 15,435 19,196 8,588
Company obligated
mandatorily redeemable
preferred securities of
subsidiary, Capital Trust I,
holding solely junior
subordinated debentures
of the Company 30,000 30,000 30,000
Total liabilities 2,115,316 2,155,890 2,073,848
Shareholders' equity:
Preferred Stock, par
value $0.01 per share;
authorized 2,500,000
shares; none issued
Common Stock, par value
$0.01 per share;
authorized 30,000,000
shares; 11,507,447,
11,503,272 and 11,430,761
shares issued 115 115 114
Additional paid-in capital 38,851 38,789 37,590
Undivided profits 134,725 132,277 143,481
Accumulated other
comprehensive income 1,356 (1,912) (10,712)
Treasury stock, at
cost: 1,511,761, 1,175,524,
and 1,174,216 shares (19,539) (13,484) (13,457)
Total shareholders' equity 155,508 155,785 157,016
$2,270,824 $2,311,675 $2,230,864
BSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31, December 31, March 31,
(Dollars in Thousands, 2001 2000 2000
Except Share Data)
Interest income: (unaudited) (unaudited) (unaudited)
Interest and fees on loans $39,346 $42,622 $39,568
Interest on federal funds
sold 19 24 13
Interest on investment
securities 6,663 6,469 6,674
Interest on mortgages
held for sale 7 (5) 25
Total interest income 46,035 49,110 46,280
Interest expense:
Interest on savings deposits 1,075 1,120 1,183
Interest on time accounts 15,353 16,766 15,434
Interest on money market
deposit accounts 4,412 5,423 4,614
Interest on NOW accounts 76 79 88
Interest on borrowed funds 3,862 3,236 1,966
Interest on mandatorily
redeemable preferred
securities of subsidiary 609 609 616
Total interest expense 25,387 27,233 23,901
Net interest income 20,648 21,877 22,379
Provision for credit losses 4,674 26,913 4,608
Net interest income after
provision for credit losses 15,974 (5,036) 17,771
Gains (losses) on sale of
securities 67
Losses on sale of loans 19 26 7
Non-interest income:
Service charges on deposit
accounts 1,287 1,363 1,213
Credit card fees 48 417 402
Mortgage servicing fees 291 289 320
Fees and commissions-brokerage
services 202 183 174
Trust fees 331 324 331
Other charges, commissions,
and fees 584 562 914
Total non-interest income 2,743 3,138 3,354
Operating expense:
Salaries, pensions, and other
employee benefits 5,355 5,189 5,899
Building occupancy 1,138 1,126 1,169
Dealer commission expense 84 104 134
Computer service fees 455 528 416
Services 1,539 1,602 1,479
FDIC insurance 93 242 93
Goodwill 96 96 96
Interchange fees 323 314
Other real estate 27 (21) 46
Other expenses 1,910 2,175 2,067
Total operating expense 10,697 11,364 11,713
Income before income taxes 8,106 (13,236) 9,419
Provision for income taxes 3,103 (5,105) 3,671
NET INCOME (LOSS) $ 5,003 $ (8,131) $ 5,748
Earnings per share:
Basic $ 0.49 $ (0.79) $ 0.56
Diluted $ 0.49 $ (0.79) $ 0.56
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