BSB Bancorp, Inc. Announces Fourth Quarter Net Income of $4.0 Million And Annual Net Income of $1.8 Million.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)--Jan. 23, 2003 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 ), the bank holding company for BSB Bank & Trust Company ("BSB"), a diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services organization serving Central New York Central New York is a term used to broadly describe the central region of New York State, roughly including the following counties and cities: Cayuga County – Auburn Cortland County – Cortland Madison County – Oneida with total assets of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.0 billion, today announced financial results for the fourth quarter and full-year 2002. Highlights: Quarter Ended December December: see month. 31, 2002 -- Residential mortgage loan originations increased to $97.6 million for the fourth quarter of 2002 compared to $31.4 million for the third quarter of 2002 -- Net interest income increased approximately $500,000 over third quarter of 2002 -- Allowance to non-performing loans ratio increased to 125.0 percent from 114.4 percent at September 30, 2002 and 97.0 percent at December 31, 2001 BSB's net income for the quarter ended December 31, 2002 was $4.0 million or $0.41 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 $3.9 million or $0.41 per diluted share for the third quarter of 2002 and $4.9 million or $0.49 per diluted share for the fourth quarter of 2001. BSB had another strong quarter of residential loan growth, as the total residential portfolio grew to $330.3 million at December 31, 2002, an increase of $69.8 million or 26.8 percent from $260.6 million at September September: see month. 30, 2002. The total residential loan portfolio at December 31, 2002 was up by $109.4 million or 49.5 percent from $220.9 million at December 31, 2001. Commercial and industrial ("C&I") loans at December 31, 2002 totaled $492.2 million or 36.5 percent of the total loan portfolio, compared to $557.5 million or 42.4 percent of the total portfolio at September 30, 2002. The portfolio was $750.6 million or 50.6 percent of the total portfolio at December 31, 2001. 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 Chief Executive Officer, stated, "We continue to be successful in our strategic initiative of shifting our mix of loans, most notably growing our residential real estate and commercial real estate portfolios and reducing our C&I loans. Residential mortgage loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. grew to $97.6 million in the fourth quarter of 2002, from $31.4 million in the third quarter of 2002. Originations for the full-year 2002 were a record $200.5 million, compared to $90.6 million for the full-year 2001. While we were clearly helped by the interest rate environment during 2002, our success is also owed to the priority we have placed on being the leader in that business in our primary markets and the improved efficiencies of our new BSB Mortgage Corporation facility. Almost 31 percent of our new mortgage customers also opened a BSB checking account and we are quite pleased with our results in building those core customer relationships." Mr. Sharp continued, "We also were successful in growing our commercial real estate portfolio, which increased to $147.0 million at the end of the fourth quarter of 2002, up 20.3 percent compared to $122.1 million at the end of the third quarter of 2002." Net interest income increased from $18.8 million in the third quarter of 2002 to $19.3 million in the fourth quarter of 2002 as average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin increased $22.4 million from the third quarter of 2002 to the fourth quarter of 2002. Contributing to the increase in net interest income was an increase in the net interest margin, which increased to 3.86 percent in the fourth quarter of 2002 from 3.80 percent in the third quarter of 2002. The increase in earning assets provided approximately $200,000 of the increase in net interest income from the third quarter of 2002 to the fourth quarter of 2002, with changes in interest rates accounting for the remainder of the increase. Especially significant was the decline in the cost of retail certificates of deposit in the fourth quarter of 2002 by 34 basis points from the third quarter 2002, which contributed to a drop in the total cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. to 2.71 percent for the fourth quarter from 2.95 percent for the third quarter of 2002. Non-interest income for the fourth quarter of 2002 increased to $6.6 million from $3.1 million in the third quarter of 2002. Included in the fourth quarter 2002 total was a net gain of approximately $3.1 million from the sale of two branches in the Elmira Elmira (ĕlmī`rə), city (1990 pop. 33,724), seat of Chemung co., extreme S central N.Y., on the Chemung River; settled 1788, inc. 1864. area. Also included in non-interest income for the fourth quarter was approximately $636,000 of net gains from the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of BSB Capital Trust I Preferred Securities. Total 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 fourth quarter of 2002 was $11.7 million, an increase of $511,000 compared to the third quarter of 2002 and $661,000 compared to the fourth quarter of 2001. The increase in total operating expense in the fourth quarter of 2002 compared to the third quarter of 2002 was largely due to increases in professional fees of approximately $232,000 and salaries and benefits increases of approximately $175,000. The legal costs associated with the resolution of problem loans continues to keep professional fees high. When comparing the increase in expenses from the fourth quarter of 2002 to the fourth quarter of 2001, the increase in salaries and benefits amounted to $531,000. Salary increases were the result of merit increases effective at the beginning of 2002 and additional staff. In addition, benefit costs rose as a result of higher health care and pension costs. The provision for loan losses for the fourth quarter of 2002 was $9.8 million compared to $4.5 million for both the third quarter of 2002 and the fourth quarter of 2001. The increased provision for loan losses was primarily due to increased net loan charge-offs, continued high levels of problematic loans, discussed below, as well as the continued economic sluggishness and uncertainty that BSB sees in its primary markets. Fourth quarter net charge-offs were $6.3 million compared to $1.7 million in the third quarter of 2002 and $2.6 million for the fourth quarter of 2001. Mr. Sharp also stated, "Risk management and asset quality continue to be the focus at BSB and I am pleased to be able to report a decrease in 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. . Non-performing loans at December 31, 2002 were $50.6 million or 3.76 percent of total gross loans outstanding, compared to $52.2 million or 3.98 percent of total gross loans outstanding at September 30, 2002 and $60.7 million or 4.09 percent of total gross loans outstanding at December 31, 2001. Loan loss reserve coverage of non-performing loans also improved, rising to 125.0 percent of non-performing loans from 114.4 percent coverage at September 30, 2002 and 97.0 percent coverage at December 31, 2001. In addition, the reserve to total loans is now at 4.69 percent as compared to 4.55 percent at September 30, 2002 and 3.96 percent at December 31, 2001." Other asset quality ratios improved also with performing loans past due 30-89 days declining to $6.1 million at December 31, 2002 from $8.1 million at September 30, 2002, and performing substandard substandard, adj below an acceptable level of performance. loans dropping to $78.2 million ($12.2 million of which are accruing troubled debt restructured loans) at December 31, 2002 compared to $83.9 million ($5.1 million of which are accruing troubled debt restructured loans) at September 30, 2002. The loan mix continued to get closer to our targets as we ended the year with 36.5 percent C&I loans, 24.5 percent residential mortgage loans, 28.1 percent consumer loans and 10.9 percent commercial real estate. Highlights: Year Ended December 31, 2002 -- Real estate loans grew $121.5 million and C&I loans declined $258.4 million during 2002 -- Indirect auto originations up 72.5 percent for 2002 compared to 2001 -- Successful Proof of Deposit conversion and seamless See seamless integration. sale of branches and credit card portfolio sale accomplished For the twelve months ended December 31, 2002, BSB had net income of $1.8 million or $0.18 per diluted share, compared to net income of $20.5 million or $2.02 per diluted share for the twelve months ended December 31, 2001, attributed primarily to the increases in the provision for loan losses and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . The provision for loan losses for the twelve months ended December 31, 2002 was $46.2 million compared to $18.2 million for the comparable period in 2001. A substantial portion of the 2002 provision, $26.7 million, was recorded during the second quarter of 2002 primarily due to specific circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or affecting individual borrowers and our analysis during the second quarter of other borrowers whose reported financial results revealed deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although and repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan ability. Net interest income for the twelve months ended December 31, 2002 was $78.3 million, compared to $81.3 million during the same period in 2001. While net interest margin for the year 2002 increased slightly to 3.92 percent compared to 3.87 percent for the year 2001, the increase was more than offset by declines in the average balance of earning assets. Average earning asset Earning asset An asset that generates income, e.g., income from rental property. balances declined 5.2 percent from $2,102.9 million for 2001 to $1,994.5 million for 2002. Non-interest income for the twelve months ended December 31, 2002 was $17.8 million compared to $13.5 million in 2001, and includes a net gain of approximately $1.8 million on the sale of the Bank's credit card portfolio that was completed in the first quarter, a net gain of $3.1 million from the sale of two Elmira, New York Elmira is a city in Chemung County, New York, USA. It is the principal city of the 'Elmira, New York Metropolitan Statistical Area' which encompasses Chemung County, New York. The population was 30,940 at the 2000 census. It is the county seat of Chemung County. branches and approximately $726,000 of net gains from the repurchase of $7.0 million of BSB's Capital Trust I Preferred Securities. Operating expense for the twelve months of 2002 was $48.3 million, compared to $43.6 million for the same period in 2001. The increase was primarily the result of an increase in salary, pensions and other employee benefit costs of $2.9 million and an increase in professional fees of $684,000. Increases in salary costs for 2002 compared to 2001 consisted of both merit increases and an increase in staffing levels during 2001. The increase in benefit costs related primarily to increased health care and pension costs. Professional fees rose 31 percent mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to non-performing loan actions. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program Through its repurchase programs, the Company repurchased 167,070 shares and 315,496 shares of the Company's currently issued and outstanding shares of common stock during the fourth quarter and twelve months ended December 31, 2002, respectively. Howard W. Sharp, stated, "The Board of Directors adopted the repurchase program because it continues to consider BSB Bancorp's stock to be an attractive investment." Mr. Sharp noted that "a principal effect of the repurchase program will be to increase the earnings per share of those shares of BSB Bancorp stock that remain outstanding after the repurchases." Elmira Branch Sale On December 13, 2002, BSB Bank & Trust Company completed the sale of its two Elmira branch offices which had approximately $44.2 million in deposits. There was a net gain of $3.1 million from this transaction. BSB Capital Trust III During the fourth quarter, BSB Bancorp, Inc. formed the subsidiary BSB Capital Trust III, for the purpose of issuing preferred securities. The trust issued $15.0 million of floating-rate, non-voting non-voting adj non-voting shares → azioni fpl senza diritto di voto , preferred securities, maturing in 2033. The entire net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the Trust from the offering were invested in junior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. obligations of the Company, which are the sole assets of the Trust. Proceeds from the issuance of these securities will be used for general corporate purposes. Bank Owned Life Insurance ("BOLI BOLI Bank-Owned Life Insurance BOLI Bureau of Labor and Industries ") The Bank purchased $20 million of bank owned life insurance during December 2002. This will provide tax-exempt income Tax-exempt income Dividends and interest not subject to federal and, in some cases, state and local income taxes. from increases in the cash surrender value The amount of money that an insurance company pays the insured upon cancellation of a life insurance policy before death and which is a specific figure assigned to the policy at that particular time, reduced by a charge for administrative expenses. of life insurance policies. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains forward-looking statements, including those regarding the projected performance of BSB Bancorp, Inc. These statements constitute forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information, within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, which involve significant risks and uncertainties. Actual results may differ materially from any forward-looking information discussed in this news release. Factors that might cause such differences include, but are not limited to: fluctuations in interest rates, government regulations and economic conditions and competition in the geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. and business areas in which BSB conducts its operations, as well as unanticipated loan losses and other similar conditions affecting the Company's operations, pricing, products, and services. Except as required by law, BSB disclaims any obligation to update any such factors or to publicly announce the result of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any of the forward-looking statements in this news release to reflect future events or developments. For additional information regarding BSB, including a discussion of related risk factors, please refer to BSB's public filings with the Securities and Exchange Commission which are available online at http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Profile Headquartered in Binghamton, New York This article is about the City of Binghamton, New York. For the adjacent Town of Binghamton, see Binghamton (town), New York. Binghamton is a city located in the Southern Tier of New York in the United States. It is the county seat of Broome County. , BSB Bancorp, Inc. provides a broad range of deposit, loan, trust and financial management services to businesses and consumers in Broome Locations named Broome:
adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. banking offices, 26 branch-based and 27 off-premise automatic teller machines See ATM. , and at 12 proprietary banking service locations (StoreTeller(R)) situated in a large area supermarket supermarket Large retail store operated on a self-service basis, selling groceries, produce, meat, bakery and dairy products, and sometimes nonfood goods. Supermarkets were first established in the U.S. during the 1930s as no-frills retail stores offering low prices. chain. In Broome County, the Bank is the leader in total deposits with 37 percent. More information about BSB can be obtained on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.bsbbank.com.
BSB BANCORP, INC. - CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
(Dollars in Thousands, Except Share and Per Share Data)
----------------------------------------------------------------------
Quarters Ended
December September December
31, 30, 31,
OPERATIONS DATA 2002 2002 2001
-----------------------------------------------------
Total interest
income $31,085 $31,511 $35,219
Total interest
expense 11,779 12,679 15,326
Net interest
income 19,306 18,832 19,893
Provision for
loan losses 9,750 4,500 4,500
Non-interest
income 6,618 3,124 3,407
Operating
expense 11,723 11,212 11,062
Income tax
expense
(benefit) 480 2,318 2,874
Net income 3,971 3,926 4,864
-----------------------------------------------------
SELECTED
FINANCIAL DATA
Yield on earning
assets (1) 6.21% 6.37% 7.13%
Cost of funds
(1) 2.71 2.95 3.62
Interest rate
spread (1) 3.50 3.42 3.51
Interest rate
margin (1) 3.86 3.80 4.03
Return on
average assets
(1) 0.77 0.77 0.96
Return on
average equity
(1) 10.52 10.50 11.97
Equity to assets
(2) 7.32 7.33 7.55
Operating
expenses to
average
assets (1) 2.27 2.20 2.18
Efficiency ratio 51.28 51.07 47.48
-----------------------------------------------------
PER SHARE DATA
Basic earnings $0.42 $0.41 $0.50
Diluted earnings $0.41 $0.41 $0.49
Book value $15.78 $15.78 $16.19
Dividends paid $0.25 $0.25 $0.25
Dividend payout
ratio 60.57% 61.04% 50.46%
(1) Annualized (2) At period ended
-----------------------------------------------------
At December September December
31, 30, 31,
FINANCIAL 2002 2002 2001
CONDITION DATA
-----------------------------------------------------
Assets $2,034,667 $2,065,009 $2,062,937
Earning assets 1,952,148 1,988,381 2,007,700
Gross loans 1,347,431 1,313,734 1,484,707
Allowance for
loan losses (63,250) (59,754) (58,829)
Gross investment
securities 598,853 673,215 512,208
Unrealized
appreciation
in AFS
securities 14,999 16,488 4,322
Interest-bearing
deposits 1,287,998 1,319,251 1,337,841
Non-interest-
bearing
deposits 154,758 161,384 159,096
Borrowings 378,118 377,876 360,251
Capital
securities 48,000 39,000 30,000
Shareholders'
equity 148,926 151,296 155,825
Non-performing
loans 50,615 52,223 60,675
Performing
loans, 30-89
days past due 6,120 8,136 18,111
Other real
estate owned 1,532 4,488 710
Repossessed
assets 1,577 492 1,324
Trust assets 261,689 244,769 317,940
Serviced loans 366,020 407,444 460,874
-----------------------------------------------------
AVERAGE BALANCES
Assets $2,062,783 $2,036,738 $2,029,009
Earning assets 2,002,529 1,980,159 1,974,535
Gross loans 1,331,955 1,307,398 1,502,098
Allowance for
loan losses (59,309) (58,395) (57,447)
Gross investment
securities 665,756 661,306 421,989
Unrealized
appreciation
in AFS
securities 15,249 14,135 10,238
Interest-bearing
deposits 1,301,042 1,347,559 1,390,387
Non-interest-
bearing
deposits 156,870 154,778 152,306
Borrowings 402,786 330,620 272,993
Capital
securities 35,946 39,000 30,000
Shareholders'
equity 151,006 149,515 162,493
Shares
outstanding 9,514,115 9,584,896 9,771,603
Diluted shares
outstanding 9,611,592 9,692,658 9,980,098
Twelve Months Ended
December 31,
OPERATIONS DATA 2002 2001
-----------------------------------------------------
Total interest
income $129,488 $163,494
Total interest
expense 51,219 82,167
Net interest
income 78,269 81,327
Provision for
loan losses 46,170 18,224
Non-interest
income 17,763 13,532
Operating
expense 48,333 43,603
Income tax
expense
(benefit) (254) 12,572
Net income 1,783 20,460
-----------------------------------------------------
SELECTED
FINANCIAL DATA
Yield on earning
assets (1) 6.49% 7.77%
Cost of funds
(1) 2.97 4.49
Interest rate
spread (1) 3.52 3.28
Interest rate
margin (1) 3.92 3.87
Return on
average assets
(1) 0.09 0.95
Return on
average equity
(1) 1.15 12.87
Equity to assets
(2) 7.32 7.55
Operating
expenses to
average
assets (1) 2.34 2.02
Efficiency ratio 52.59 46.11
-----------------------------------------------------
PER SHARE DATA
Basic earnings $0.19 $2.05
Diluted earnings $0.18 $2.02
Book value $15.78 $16.19
Dividends paid $1.00 $1.00
Dividend payout
ratio 539.88% 48.83%
(1) Annualized (2) At period ended
-----------------------------------------------------
FINANCIAL December 31,
CONDITION DATA 2002 2001
-----------------------------------------------------
Assets $2,034,667 $2,062,937
Earning assets 1,952,148 2,007,700
Gross loans 1,347,431 1,484,707
Allowance for
loan losses (63,250) (58,829)
Gross investment
securities 598,853 512,208
Unrealized
appreciation
in AFS
securities 14,999 4,322
Interest-bearing
deposits 1,287,998 1,337,841
Non-interest-
bearing
deposits 154,758 159,096
Borrowings 378,118 360,251
Capital
securities 48,000 30,000
Shareholders'
equity 148,926 155,825
Non-performing
loans 50,615 60,675
Performing
loans, 30-89
days past due 6,120 18,111
Other real
estate owned 1,532 710
Repossessed
assets 1,577 1,324
Trust assets 261,689 317,940
Serviced loans 366,020 460,874
-----------------------------------------------------
AVERAGE BALANCES
Assets $2,047,768 $2,156,559
Earning assets 1,994,546 2,102,931
Gross loans 1,359,891 1,657,154
Allowance for
loan losses (57,666) (59,092)
Gross investment
securities 613,761 408,944
Unrealized
appreciation
in AFS
securities 10,612 4,006
Interest-bearing
deposits 1,345,866 1,524,027
Non-interest-
bearing
deposits 150,483 146,492
Borrowings 345,138 274,071
Capital
securities 35,786 30,000
Shareholders'
equity 154,472 158,928
Shares
outstanding 9,589,361 9,958,952
Diluted shares
outstanding 9,740,263 10,114,197
BSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION (unaudited)
(In Thousands, Except Share and Per Share Data)
----------------------------------------------------------------------
December September December
31, 2002 30, 2002 31, 2001
----------------------------------------------------------------------
ASSETS
Cash and due from banks $46,912 $53,144 $56,272
Investment securities available
for sale, at fair value 538,545 638,458 487,685
Investment securities held to
maturity 55,373 34,346 13,774
Federal Home Loan Bank of New York
stock 19,934 16,899 15,071
Loans held for sale 4,001 236 9,860
Loans:
Commercial 492,171 557,495 750,552
Consumer 377,961 373,513 378,354
Residential real estate 330,344 260,578 220,935
Commercial real estate 146,955 122,148 134,866
----------------------------------------------------------------------
Total loans 1,347,431 1,313,734 1,484,707
Net deferred costs 1,863 1,196 802
Allowance for loan losses (63,250) (59,754) (58,829)
----------------------------------------------------------------------
Net loans 1,286,044 1,255,176 1,426,680
Bank premises and equipment 14,545 15,025 14,879
Accrued interest receivable 9,875 10,472 10,502
Other real estate owned and
repossessed assets 3,109 4,980 2,034
Bank owned life insurance 20,032 0 0
Other assets 36,297 36,273 26,180
----------------------------------------------------------------------
$2,034,667 $2,065,009 $2,062,937
LIABILITIES AND SHAREHOLDERS' EQUITY
----------------------------------------------------------------------
Due to depositors $1,442,756 $1,480,635 $1,496,937
Borrowings 378,118 377,876 360,251
Other liabilities 16,867 16,202 19,924
Company obligated mandatorily
redeemable preferred
securities of subsidiaries,
holding solely junior
subordinated debentures of
the Company 48,000 39,000 30,000
----------------------------------------------------------------------
Total liabilities 1,885,741 1,913,713 1,907,112
Shareholders' Equity:
Preferred stock, par value
$.01 per share;
2,500,000 shares
authorized; none issued
Common stock, par value $.01
per share;
30,000,000 shares
authorized; 11,660,726,
11,642,301 and 11,535,500
shares issued 117 116 115
Additional paid-in capital 41,704 41,113 39,331
Undivided profits 134,903 133,337 142,748
Accumulated other
comprehensive income 8,970 9,861 2,520
Treasury stock, at cost;
2,223,430,
2,056,360 and 1,907,934
shares (36,768) (33,131) (28,889)
----------------------------------------------------------------------
Total shareholders'
equity 148,926 151,296 155,825
----------------------------------------------------------------------
$2,034,667 $2,065,009 $2,062,937
----------------------------------------------------------------------
BSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In Thousands, Except Per Share Data)
----------------------------------------------------------------------
Quarters Ended Years Ended
Dec. Sept. Dec. Dec. 31,
31, 30, 31,
2002 2002 2001 2002 2001
----------------------------------------------------------------------
Interest income:
Interest and fees on
loans $22,718 $22,973 $28,502 $96,346 $137,196
Interest on federal
funds sold 3 42 292 287 1,101
Interest on
investment
securities 8,329 8,477 6,333 32,622 25,008
Interest on loans
held for sale 35 19 92 233 189
----------------------------------------------------------------------
Total interest
income 31,085 31,511 35,219 129,488 163,494
----------------------------------------------------------------------
Interest expense:
Interest on savings
deposits 573 668 823 2,551 4,092
Interest on time
accounts 5,680 6,422 9,072 26,401 48,878
Interest on money
market deposit
accounts 1,166 1,439 1,588 5,667 11,500
Interest on NOW
accounts 82 146 378 710 1,522
Interest on borrowed
funds 3,630 3,261 2,856 13,162 13,738
Interest on
mandatorily
redeemable
preferred
securities of
subsidiaries 648 743 609 2,728 2,437
----------------------------------------------------------------------
Total interest
expense 11,779 12,679 15,326 51,219 82,167
----------------------------------------------------------------------
Net interest income 19,306 18,832 19,893 78,269 81,327
Provision for loan
losses 9,750 4,500 4,500 46,170 18,224
----------------------------------------------------------------------
Net interest income
after provision
for loan losses 9,556 14,332 15,393 32,099 63,103
----------------------------------------------------------------------
Non-interest income:
Service charges on
deposit accounts 1,341 1,348 1,323 5,176 5,226
Checkcard
interchange fees 388 352 354 1,422 1,284
Mortgage servicing
fees 122 252 269 832 1,125
Fees and
commissions-
brokerage services 168 168 178 886 698
Trust fees 329 260 300 1,308 1,618
Gains on sale of
securities, net 22 95 230 292 379
Gain on sale of
branch offices, net 3,063 0 0 3,063 299
Gain on sale of
credit card
portfolio, net 0 0 0 1,806 0
Other income 1,185 649 753 2,978 2,903
----------------------------------------------------------------------
Total non-
interest income 6,618 3,124 3,407 17,763 13,532
----------------------------------------------------------------------
Operating expense:
Salaries, pensions
and
other employee
benefits 6,098 5,923 5,567 24,769 21,828
Building occupancy 1,067 1,056 1,087 4,259 4,304
Advertising and
promotion 259 267 298 1,293 931
Professional fees 873 641 704 2,890 2,206
Data processing
costs 1,280 1,253 1,312 5,534 5,213
Services 784 647 644 2,905 2,951
Conversion expenses 0 0 0 387 0
Other real estate
owned and
repossessed
asset expenses,
net 42 33 (29) 688 211
Other expenses 1,320 1,392 1,479 5,608 5,959
----------------------------------------------------------------------
Total operating
expense 11,723 11,212 11,062 48,333 43,603
----------------------------------------------------------------------
Income before income
taxes 4,451 6,244 7,738 1,529 33,032
Income tax expense
(benefit) 480 2,318 2,874 (254) 12,572
----------------------------------------------------------------------
NET INCOME $3,971 $3,926 $4,864 $1,783 $20,460
----------------------------------------------------------------------
Earnings per share:
Basic $0.42 $0.41 $0.50 $0.19 $2.05
Diluted $0.41 $0.41 $0.49 $0.18 $2.02
----------------------------------------------------------------------
BSB BANCORP, INC.
NON-PERFORMING ASSETS (unaudited)
(Dollars in Thousands)
----------------------------------------------------------------------
December September June March December
31, 30, 30, 31, 31,
2002 2002 2002 2002 2001
----------------------------------------------------------------------
Non-accrual loans:
Commercial loans $34,614 $40,447 $39,420 $31,813 $42,424
Residential real
estate loans 616 755 722 842 882
Commercial real
estate loans 2,647 4,080 1,219 4,342 4,235
Consumer loans 288 365 438 0 0
Troubled debt
restructured loans 12,172 6,219 11,915 19,402 12,255
----------------------------------------------------------------------
Total non-
accrual loans 50,337 51,866 53,714 56,399 59,796
Accruing loans with
principal or interest
payments 90 days or
more overdue 278 357 374 736 879
----------------------------------------------------------------------
Total non-
performing loans 50,615 52,223 54,088 57,135 60,675
----------------------------------------------------------------------
Other real estate owned
and
repossessed assets 3,109 4,980 4,872 1,972 2,034
----------------------------------------------------------------------
Total non-
performing
assets $53,724 $57,203 $58,960 $59,107 $62,709
----------------------------------------------------------------------
Total non-performing
loans to total loans 3.76% 3.98% 4.10% 4.15% 4.09%
----------------------------------------------------------------------
Total non-performing
assets to total assets 2.64% 2.77% 2.86% 2.87% 3.04%
----------------------------------------------------------------------
Note: Accruing loans classified as troubled debt restructured loans
totaled: $13,792,000, $5,052,000, $4,925,000, $7,578,000, and
$8,751,000 at December 31, 2002, September 30, 2002, June 30, 2002,
March 31, 2002, and December 31, 2001, respectively. The Bank does not
consider these loans to be non-performing.
ALLOWANCE AND NET CHARGE-OFFS PER QUARTER (unaudited)
(Dollars in Thousands)
----------------------------------------------------------------------
Quarters Ended
December September June March December
31, 30, 30, 31, 31,
2002 2002 2002 2002 2001
----------------------------------------------------------------------
Average gross
loans
outstanding $1,331,955 $1,307,398 $1,365,925 $1,436,007 $1,502,098
----------------------------------------------------------------------
Allowance at
beginning of
period $59,754 $56,988 $52,785 $58,829 $56,905
Charge-offs:
Commercial
loans 7,271 2,285 23,052 10,326 1,686
Consumer
loans 967 1,359 432 1,664 2,501
Residential
real estate
loans 17 16 40 15 29
Commercial
real estate
loans 0 0 1,112 0 0
----------------------------------------------------------------------
Total loan
charge-
offs 8,255 3,660 24,636 12,005 4,216
Recoveries 2,001 1,926 2,119 761 1,640
----------------------------------------------------------------------
Net charge-
offs 6,254 1,734 22,517 11,244 2,576
----------------------------------------------------------------------
Provision for
loan losses 9,750 4,500 26,720 5,200 4,500
----------------------------------------------------------------------
Allowance at
end of
period $63,250 $59,754 $56,988 $52,785 $58,829
----------------------------------------------------------------------
Ratio of net
charge-offs
to:
Average
gross loans
outstanding
(annualized) 1.88% 0.53% 6.59% 3.13% 0.69%
Ratio of
allowance
to:
Non-
performing
loans 124.96% 114.42% 105.36% 92.39% 96.96%
Period-end
loans
outstanding 4.69% 4.55% 4.32% 3.83% 3.96%
----------------------------------------------------------------------
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