BSB Bancorp, Inc. Announces Second Quarter 2002 Results And Declares Quarterly Dividend.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)--July 25, 2002 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, 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 with total assets of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.1 billion, today announced financial results for the second quarter and six months ended June June: see month. 30, 2002. On June 24, 2002, BSB announced that it would take a provision for loan losses of $26.7 million in the second quarter of 2002, due to deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the commercial and industrial (C&I) loan portfolio. As a result of the provision, BSB had a net loss for the quarter ended June 30, 2002 of $11.2 million, or $1.16 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 net income of $5.4 million, or $0.53 per diluted share, for the second quarter of 2001. The provision for loan losses for the second quarter of 2001 and first quarter of 2002 were $4.5 million and $5.2 million, respectively. Net income for the first quarter 2002 was $5.0 million, or $0.51 per diluted share. Notwithstanding the loss in the second quarter, BSB Bancorp, Inc. and BSB Bank & Trust Company each remain well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. by regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. standards at June 30, 2002. BSB also announced that on July July: see month. 22, 2002, the Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly dividend of $0.25 per share. The dividend is payable September September: see month. 10, 2002 to shareholders of record at the close of business on August 23, 2002. Second Quarter 2002 Performance Highlights: - A $138.2 million reduction in C&I loans from December 31, 2001 - A 27 basis-point improvement in the interest rate margin compared to the six month period ended June 30, 2001 - A $37.8 million reduction in brokered CD's and "Moneydesk" deposits from December 31, 2001 - Deposit growth of $31.8 million in our Central New York region - Residential mortgage loan originations of $71.4 million compared to $35.4 million in the first six months of 2001, an increase of 101.8%. "While recognizing the significance of the second quarter provision, we remain confident in the strength and quality of our core banking business," said 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. "We continue to focus on improving asset quality primarily in C&I loans, and on reducing the size of the C&I portfolio as a percentage of total loans." "The actions taken by the Board in the second quarter reflect 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 quarter of other borrowers whose reported financial results reveal further deterioration 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. The action also reflects BSB's concern for what we see as economic sluggishness and uncertainty in our primary markets," Mr. Sharp stated. Approximately $13 million of the second quarter provision related specifically to five borrowers, each of which is experiencing major operational difficulties, resulting in eroding collateral values and repayment ability. Another $8 million of the provision relates to 29 borrowers reporting deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: trends in earnings or asset values. The remainder of the provisioning is the result of deterioration in the risk grades in the commercial and industrial loan portfolio, as well as increased loan charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. experience. The allowance for loan losses was $57.0 million at June 30, 2002, compared to $55.2 million on June 30, 2001 and $52.8 million at the end of the March 2002 quarter. The second quarter 2002 allowance for loan losses as a percentage of period-end loans outstanding was 4.3 percent, compared to 3.3 percent on June 30, 2001, and 3.8 percent on March 31, 2002. The coverage of the allowance was equal to 105.4 percent of 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-accruing loans and accruing loans 90 days or more past due) at June 30, 2002 compared with 102.1 percent on June 30, 2001 and 92.4 percent on March 31, 2002. Non-performing loans at June 30, 2002 were $54.1 million, or 4.1 percent of total gross loans outstanding, compared to $54.0 million, or 3.3 percent of total gross loans outstanding at June 30, 2001, and $57.1 million, or 4.2 percent of total gross loans outstanding on March 31, 2002. Loans 30-89 days past due were $10.0 million at June 30, 2002, down from $33.9 million at June 30, 2001, a reduction of 70.6 percent, and down from $14.4 million at March 31, 2002, a reduction of 30.6%. Loans 30-89 days past due as a percentage of total gross loans outstanding were 0.76 percent at June 30, 2002, compared with 2.05 percent at June 30, 2001, and 1.04 percent at March 31, 2002. At June 30, 2002 commercial and industrial loans totaled $612.4 million or 46.5 percent of the total loan portfolio, as compared to $867.6 million or 52.6 percent of the total portfolio at June 30, 2001. C&I loans were down $56.0 million, or 8.4 percent from the end of first quarter 2002, and $255.2 million or 29.4 percent from June 30, 2001. Net interest income for the second quarter was $19.9 million, compared to $20.7 million in the second quarter of 2001, and $20.2 million for the first quarter of 2002. Net interest income declined, on a year-to-year basis, by only 4 percent, despite a $366.6 million reduction in average gross loans, primarily C&I loans, from the second quarter of 2001 to the second quarter of 2002. The reduction in gross loans reflects actions taken by BSB to rebalance its loan portfolio. It also provided an opportunity to let $167.1 million in higher-cost brokered CD's and "Moneydesk" deposits, used to finance these loans, run off. Non-interest income for the second quarter of 2002 was $3.2 million compared to $3.6 million for the second quarter 2001, which included a $299 thousand gain on the sale of a branch office. First quarter 2002 non-interest income was $4.8 million and included a $1.8 million gain on sale of the bank's credit card portfolio. 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 second quarter of 2002 was $13.6 million, compared to $11.8 million in the first quarter of 2002. This increase was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increases in a few specific areas. Advertising increased $419 thousand, professional fees increased $358 thousand, expenses associated with repossessed or foreclosed property increased $282 thousand and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expenses related to the conversion to "Proof of Deposit" processing were $387 thousand. 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. for the second quarter of 2001 were $11.0 million. When compared to the second quarter of 2002, the categories representing the increases were the same as mentioned above plus salaries and benefits costs increasing $942 thousand. BSB's efficiency ratio for the second quarter was 57.10%, compared to 45.68% for the second quarter of 2001, and 50.86% for the first quarter of 2002. Performance Highlights, Six Months Ended June 30, 2002: - A $138.2 million reduction in C&I loans from December 31, 2001 - A 27 basis-point improvement in the interest rate margin compared to the six month period ended June 30, 2001 - A $37.8 million reduction in brokered CD's and "Moneydesk" deposits from December 31, 2001 - Deposit growth of $31.8 million in our Central New York region - Residential mortgage loan originations of $71.4 million compared to $35.4 million in the first six months of 2001, an increase of 101.8%. Net loss for the six months ended 2002 was $6.1 million, or $0.63 per diluted share, compared to net income of $10.4 million, or $1.02 per diluted share for the six months ended June 30, 2001. The provision for loan losses for the six months ended June 30, 2002 was $31.9 million compared to $9.2 million for the comparable period in 2001. Net interest income for the six months ended June 30, 2002 was $40.1 million, compared to $41.1 million during the same period in 2001. Non-interest income for the six months ended June 30, 2002 was $8.0 million, compared to $6.7 million in 2001. Operating expense for the first six months of 2002 was $25.4 million, compared to $21.7 million for the same period in 2001. The expense items representing the increase were primarily the same as those mentioned above in the second quarter 2002 versus second quarter 2001 discussion. BSB Capital Trust II: During the second quarter BSB Bancorp, Inc. formed the subsidiary BSB Capital Trust II, for the purpose of issuing preferred securities. The trust issued $10.0 million of floating-rate, non-voting non-voting adj non-voting shares → azioni fpl senza diritto di voto , preferred securities, maturing in 2032. 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. POD Conversion: The "Proof of Deposit" conversion, completed by the bank during the second quarter, will enable BSB to realize operational benefits in future quarters that include efficiencies at the teller TELLER. An officer in a bank or other institution. He is said to take that name from tallier, or one who kept a tally, because it is his duty to keep the accounts between the bank or other institution and its customers, or to make their accounts tally. line, consistency Consistency can refer to:
v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. fee monitoring and assessment system. Forward Looking Statements: This news release contains 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. , 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, 29 branch-based, and 26 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.
BSB BANCORP, INC. - CONSOLIDATED (Dollars in Thousands, Except
FINANCIAL HIGHLIGHTS (unaudited) Share and Per Share Data)
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Quarters Ended
June 30, March 31, June 30,
OPERATIONS DATA 2002 2002 2001
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Total interest income $33,193 $33,699 $42,601
Total interest expense 13,307 13,453 21,889
Net interest income 19,886 20,246 20,712
Provision for loan losses 26,720 5,200 4,500
Non-interest income 3,172 4,849 3,557
Operating expense 13,553 11,844 10,950
Income tax (benefit) expense (6,058) 3,007 3,415
Net income (loss) (11,157) 5,044 5,404
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SELECTED FINANCIAL DATA
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Yield on earning assets (1) 6.59% 6.81% 7.92%
Cost of funds (1) 3.05 3.16 4.68
Interest rate spread (1) 3.54 3.65 3.24
Interest rate margin (1) 3.95 4.09 3.85
Return (loss) on average
assets (1) (2.16) 1.00 0.98
Return (loss) on average
equity (1) (28.05) 12.74 13.74
Equity to assets (2) 7.14 7.58 7.31
Operating expenses to
average assets (1) 2.55 2.34 1.99
Efficiency ratio 57.10 50.86 45.68
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PER SHARE DATA
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Basic (loss) earnings ($1.16) $0.52 $0.54
Diluted (loss) earnings ($1.16) $0.51 $0.53
Book value $15.34 $16.18 $15.79
Dividends paid $0.25 $0.25 $0.25
Dividend payout ratio NM 48.00% 46.26%
(1) Annualized (2) At period ended (NM) Not meaningful
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At June 30, March 31, June 30,
FINANCIAL CONDITION DATA 2002 2002 2001
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Assets $2,058,224 $2,057,310 $2,142,657
Earning assets 1,989,687 2,001,802 2,076,560
Gross loans 1,318,101 1,377,307 1,651,057
Allowance for loan losses (56,988) (52,785) (55,159)
Gross investment securities 652,860 590,061 375,321
Unrealized appreciation
in AFS securities 11,896 1,018 1,834
Interest-bearing deposits 1,367,578 1,391,168 1,511,610
Non-interest-bearing
deposits 155,323 138,413 148,410
Borrowings 335,837 328,216 277,360
Subordinated debt 39,000 30,000 30,000
Shareholders' equity 146,985 155,865 156,600
Non-performing loans 54,088 57,135 54,010
Loans, 30-89 days past due 9,970 14,357 33,894
Other real estate owned 4,356 485 435
Repossessed assets 516 1,487 2,269
Trust assets 270,991 308,110 325,320
Serviced loans 430,338 444,660 492,920
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AVERAGE BALANCES
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Assets $2,065,190 $2,026,079 $2,199,710
Earning assets 2,015,758 1,979,647 2,150,461
Gross loans 1,365,925 1,436,007 1,732,496
Allowance for loan losses (53,815) (59,134) (62,436)
Gross investment securities 617,233 508,501 400,951
Unrealized appreciation in
AFS securities 6,661 6,264 1,772
Interest-bearing deposits 1,378,122 1,357,340 1,560,625
Non-interest-bearing
deposits 145,823 144,276 145,063
Borrowings 328,898 317,471 282,135
Subordinated debt 38,099 30,000 30,000
Shareholders' equity 159,108 158,398 157,354
Shares outstanding 9,608,067 9,650,367 9,977,382
Diluted shares outstanding 9,608,067 9,843,211 10,103,017
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Six Months Ended
June 30,
OPERATIONS DATA 2002 2001
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Total interest income $66,892 $88,348
Total interest expense 26,760 47,276
Net interest income 40,132 41,072
Provision for loan losses 31,920 9,174
Non-interest income 8,021 6,675
Operating expense 25,397 21,673
Income tax (benefit) expense (3,051) 6,493
Net income (loss) (6,113) 10,407
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SELECTED FINANCIAL DATA
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Yield on earning assets (1) 6.70% 8.07%
Cost of funds (1) 3.10 4.93
Interest rate spread (1) 3.60 3.14
Interest rate margin (1) 4.02 3.75
Return (loss) on average
assets (1) (0.60) 0.93
Return (loss) on average
equity (1) (7.70) 13.21
Equity to assets (2) 7.14 7.31
Operating expenses to
average assets (1) 2.45 1.93
Efficiency ratio 53.96 45.68
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PER SHARE DATA
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Basic (loss) earnings ($0.63) $1.03
Diluted (loss) earnings ($0.63) $1.02
Book value $15.34 $15.79
Dividends paid $0.50 $0.50
Dividend payout ratio NM 48.57%
(1) Annualized (2) At period ended (NM) Not meaningful
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At June 30, June 30,
FINANCIAL CONDITION DATA 2002 2001
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Assets $2,058,224 $2,142,657
Earning assets 1,989,687 2,076,560
Gross loans 1,318,101 1,651,057
Allowance for loan losses (56,988) (55,159)
Gross investment securities 652,860 375,321
Unrealized appreciation
in AFS securities 11,896 1,834
Interest-bearing deposits 1,367,578 1,511,610
Non-interest-bearing
deposits 155,323 148,410
Borrowings 335,837 277,360
Subordinated debt 39,000 30,000
Shareholders' equity 146,985 156,600
Non-performing loans 54,088 54,010
Loans, 30-89 days past due 9,970 33,894
Other real estate owned 4,356 435
Repossessed assets 516 2,269
Trust assets 270,991 325,320
Serviced loans 430,338 492,920
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AVERAGE BALANCES YTD Actual Avg.
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Assets $2,045,742 $2,240,171
Earning assets 1,997,802 2,190,390
Gross loans 1,400,773 1,769,683
Allowance for loan losses (56,460) (61,440)
Gross investment securities 563,167 411,021
Unrealized appreciation in
AFS securities 6,463 629
Interest-bearing deposits 1,367,788 1,611,606
Non-interest-bearing
deposits 145,054 142,406
Borrowings 323,216 274,397
Subordinated debt 34,072 30,000
Shareholders' equity 158,755 157,544
Shares outstanding 9,629,217 10,085,473
Diluted shares outstanding 9,629,217 10,184,655
BSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION (unaudited)
June 30, March 31, June 30,
(Dollars in Thousands, Except
Share Data) 2002 2002 2001
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ASSETS
Cash and due from banks $ 49,531 $ 52,556 $ 58,727
Federal funds sold 15,600 30,000 47,000
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Total cash and cash equivalents 65,131 82,556 105,727
Investment securities available for
sale, at fair value 637,054 564,952 346,250
Investment securities held to
maturity (fair value of $13,510,
$12,811, and $9,541, respectively) 13,307 12,482 10,081
Federal Home Loan Bank of New York
stock 14,395 13,645 20,824
Loans held for sale 2,108 3,493 2,267
Loans:
Commercial 612,400 668,383 867,640
Consumer 345,383 349,831 404,460
Real estate 360,318 359,093 378,957
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Total loans 1,318,101 1,377,307 1,651,057
Net deferred costs 1,018 941 915
Allowance for loan losses (56,988) (52,785) (55,159)
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Net loans 1,262,131 1,325,463 1,596,813
Bank premises and equipment 15,104 14,532 14,246
Accrued interest receivable 10,565 10,717 13,247
Other real estate owned and
repossessed assets 4,872 1,972 2,703
Intangible assets 646 738 1,020
Other assets 32,911 26,760 29,479
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$2,058,224 $2,057,310 $2,142,657
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LIABILITIES & SHAREHOLDERS' EQUITY
Due to depositors $1,522,901 $1,529,581 $1,660,020
Borrowings 335,837 328,216 277,360
Other liabilities 13,501 13,648 18,677
Company obligated mandatorily
redeemable preferred securities of
subsidiaries, holding solely junior
subordinated debentures of the
Company 39,000 30,000 30,000
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Total liabilities 1,911,239 1,901,445 1,986,057
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; 11,640,238 11,608,027
and 11,511,797 shares issued 116 116 115
Additional paid-in capital 41,078 40,496 38,901
Undivided profits 131,807 145,371 137,629
Accumulated other comprehensive
income 7,115 610 1,069
Treasury stock, at cost:
2,056,360, 1,976,360, and
1,592,261 shares (33,131) (30,728) (21,114)
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Total shareholders' equity 146,985 155,865 156,600
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$2,058,224 $2,057,310 $2,142,657
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BSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three Months Ended
(Dollars in Thousands, June 30, March 31, June 30,
Except Share Data) 2002 2002 2001
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Interest income:
Interest and fees on loans $ 24,337 $26,318 $36,353
Interest on federal funds
sold 129 113 153
Interest on investment
securities 8,697 7,119 6,052
Interest on loans held for
sale 30 149 43
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Total interest income 33,193 33,699 42,601
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Interest expense:
Interest on savings deposits 661 648 1,102
Interest on time accounts 6,886 7,414 13,144
Interest on money market
deposit accounts 1,756 1,698 3,386
Interest on NOW accounts 43 47 74
Interest on borrowed funds 3,233 3,037 3,574
Interest on mandatorily
redeemable preferred
securities of subsidiaries 728 609 609
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Total interest expense 13,307 13,453 21,889
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Net interest income 19,886 20,246 20,712
Provision for loan losses 26,720 5,200 4,500
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Net interest (loss) income
after provision for loan
losses (6,834) 15,046 16,212
Non-interest income:
Service charges on deposit
accounts 1,245 1,243 1,287
Checkcard interchange fees 359 323 325
Mortgage servicing fees 246 212 292
Fees and commissions-
brokerage services 299 252 152
Trust fees 366 353 381
Gains on sale of securities,
net 94 81 19
Gain on sale of branch
office, net 299
Gain on sale of credit card
portfolio, net 1,806
Other charges, commissions
and fees 563 579 802
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Total non-interest income 3,172 4,849 3,557
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Operating expense:
Salaries, pensions and other
employee benefits 6,361 6,386 5,419
Building occupancy 1,056 1,080 1,038
Advertising and promotional 593 174 295
Professional fees 867 509 452
Data processing costs 1,553 1,430 1,308
Services 694 797 846
Amortization of intangible
assets 91 91 96
Conversion expenses 387
Other real estate owned and
repossessed asset expenses 448 166 85
Other expenses 1,503 1,211 1,411
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Total operating expense 13,553 11,844 10,950
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(Loss) income before income
taxes (17,215) 8,051 8,819
Income tax (benefit) expense (6,058) 3,007 3,415
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NET (LOSS) INCOME $(11,157) $ 5,044 $ 5,404
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(Loss) earnings per share:
Basic $(1.16) $0.52 $0.54
Diluted $(1.16) $0.51 $0.53
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Year to Date
(Dollars in Thousands, June 30, June 30,
Except Share Data) 2002 2001
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Interest income:
Interest and fees on loans $50,655 $75,410
Interest on federal funds
sold 242 172
Interest on investment
securities 15,816 12,716
Interest on loans held for
sale 179 50
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Total interest income 66,892 88,348
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Interest expense:
Interest on savings deposits 1,309 2,177
Interest on time accounts 14,300 28,496
Interest on money market
deposit accounts 3,454 7,798
Interest on NOW accounts 90 150
Interest on borrowed funds 6,270 7,436
Interest on mandatorily
redeemable preferred
securities of subsidiaries 1,337 1,219
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Total interest expense 26,760 47,276
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Net interest income 40,132 41,072
Provision for loan losses 31,920 9,174
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Net interest (loss) income
after provision for loan
losses 8,212 31,898
Non-interest income:
Service charges on deposit
accounts 2,488 2,574
Checkcard interchange fees 682 613
Mortgage servicing fees 458 583
Fees and commissions-
brokerage services 551 354
Trust fees 719 712
Gains on sale of securities,
net 175 86
Gain on sale of branch
office, net 299
Gain on sale of credit card
portfolio, net 1,806
Other charges, commissions
and fees 1,142 1,454
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Total non-interest income 8,021 6,675
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Operating expense:
Salaries, pensions and other
employee benefits 12,747 10,774
Building occupancy 2,136 2,176
Advertising and promotional 767 409
Professional fees 1,376 955
Data processing costs 2,983 2,662
Services 1,491 1,558
Amortization of intangible
assets 182 193
Conversion expenses 387
Other real estate owned and
repossessed asset expenses 614 146
Other expenses 2,714 2,800
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Total operating expense 25,397 21,673
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(Loss) income before income
taxes (9,164) 16,900
Income tax (benefit) expense (3,051) 6,493
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NET (LOSS) INCOME $(6,113) $10,407
======================================================================
(Loss) earnings per share:
Basic $(0.63) $1.03
Diluted $(0.63) $1.02
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BSB BANCORP, INC.
NON-PERFORMING ASSETS (unaudited)
----------------------------------------------------------------------
June 30, March 31, Dec. 31, Sept. 30, June 30,
(Dollars in
Thousands) 2002 2002 2001 2001 2001
----------------------------------------------------------------------
Non-accrual
loans:
Commercial
loans $ 39,420 $ 31,813 $ 42,424 $ 32,198 $ 38,945
Residential
real estate
loans 722 842 882 1,365 1,258
Commercial real
estate loans 1,219 4,342 4,235 3,655 5,496
Consumer loans 438
Troubled debt
restructured
loans 11,915 19,402 12,255 5,884 7,419
----------------------------------------------------------------------
Total non-
accrual
loans 53,714 56,399 59,796 43,102 53,118
Accruing loans
with principal
or interest
payments 90
days or more
overdue 374 736 879 883 892
----------------------------------------------------------------------
Total non-
performing
loans 54,088 57,135 60,675 43,985 54,010
----------------------------------------------------------------------
Other real estate
owned and
repossessed
assets 4,872 1,972 2,034 2,471 2,704
----------------------------------------------------------------------
Total non-
performing
assets $ 58,960 $ 59,107 $ 62,709 $ 46,456 $ 56,714
======================================================================
Total non-
performing loans
to total loans 4.10% 4.15% 4.09% 2.86% 3.27%
======================================================================
Total non-
performing assets
to total assets 2.86% 2.87% 3.04% 2.21% 2.65%
======================================================================
Note: Accruing loans classified as troubled debt restructured
loans totaled: $4,925,000, $7,578,000, $8,751,000, $5,275,000, and
$2,143,000 at June 30, 2002, March 31, 2002, December 31, 2001,
September 30, 2001, and June 30, 2001, respectively. The Bank does not
consider these loans to be non-performing.
----------------------------------------------------------------------
BSB BANCORP, INC.
ALLOWANCE AND NET CHARGE-OFFS PER QUARTER (unaudited)
----------------------------------------------------------------------
Quarters Ended
June March Dec. Sept. June
(Dollars in
Thousands) 2002 2002 2001 2001 2001
----------------------------------------------------------------------
Average gross
loans
outstanding $1,365,925 $1,436,007 $1,502,098 $1,590,820 $1,732,496
======================================================================
Allowance at
beginning of
period $ 52,785 $ 58,829 $ 56,905 $ 55,159 $ 61,423
----------------------------------------------------------------------
Charge-offs:
Commercial
loans 23,052 10,326 1,686 1,821 11,101
Consumer loans 432 1,664 2,501 1,856 1,219
Residential
real estate
loans 40 15 29 30 105
Commercial real
estate loans 1,112 58
----------------------------------------------------------------------
Total loan
charge-offs 24,636 12,005 4,216 3,765 12,425
Recoveries 2,119 761 1,640 961 1,661
----------------------------------------------------------------------
Net charge-offs 22,517 11,244 2,576 2,804 10,764
----------------------------------------------------------------------
Provision for
loan losses
charged to
operating
expense 26,720 5,200 4,500 4,550 4,500
----------------------------------------------------------------------
Allowance at
end of
period $ 56,988 $ 52,785 $ 58,829 $ 56,905 $ 55,159
======================================================================
Ratio of net
charge-offs to:
Average gross
loans
outstanding
(annualized) 6.59% 3.13% 0.69% 0.71% 2.49%
Ratio of allowance
to:
Non-performing
loans 105.36% 92.39% 96.96% 129.37% 102.13%
Period-end loans
outstanding 4.32% 3.83% 3.96% 3.70% 3.34%
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