BSB Bancorp earns $12,594,000 for 1995; $3,020,000 in fourth quarter.

BINGHAMTON, N.Y.--(BUSINESS WIRE)--Jan. 26, 1996--BSB Bancorp Inc. (NASDAQ: BSBN), holding company for BSB Bank & Trust Company, announced net income in 1995 of $12,594,000, compared to $12,871,000 for 1994.

The return on average assets was 1.06% in 1995 and 1.16% in 1994. The return on average equity was 10.89% in 1995 and 11.59% in 1994. Net income for the quarter ended Dec. 31, 1995 was $3,020,000, compared to $3,036,000 for the same quarter in 1994.

Earnings per share were $1.98 for 1995, compared to $1.95 for 1994. Earnings per share for the quarter ended Dec. 31, 1995 were $0.48, compared to $0.47 for the same quarter 1994. During 1995, BSB Bancorp purchased 234,900 shares of its stock in the open market. The average number of shares outstanding for 1995 was 6,360,664, compared to 6,591,401 for 1994. All share and per share amounts have been adjusted to reflect the three-for-two stock split effective on Dec. 8, 1995.

William H. Rincker, chairman and chief executive officer of BSB Bank & Trust Co. said, "The bank experienced a 6.3% increase in net interest income and a 21.3% growth in non-interest income for the year. Actions by management in taking write-downs on loans and increasing the allowance for possible loan losses impacted net income."

Net interest income was $48,613,000 for 1995, compared to $45,723,000 for 1994. The interest rate margin remained the same for both periods at 4.31%. The provision for credit losses was $7,333,000 for 1995 and $3,717,000 for 1994. Net charge-offs were $6,620,000 in 1995 and $3,104,000 in 1994. The bank had a net gain on the sale of mortgages and securities of $56,000 for 1995 and had a net loss on the sale of mortgages and securities of $597,000 for 1994. Non-interest income was $6,672,000 in 1995 and $5,501,000 in 1994. This increase resulted largely from increased trust business, mortgage servicing fee income, growth in the consumer and merchant credit card business resulting in increased fee income, and increased income from service charges on deposit accounts.

Non-interest expense increased 5.8% from 1994 to 1995. The increase was the result of the costs associated with processing fees related to the growth in the merchant credit card program, other real estate expenses, as well as other increased in non-interest expense. These increases were partially offset by a reduction of $872,000 in FDIC insurance premiums. The Efficiency Ratio, which consists of non-interest expense divided by recurring revenues (net interest income and non-interest income) on a pre-tax basis, remains favorable at 49.27% for 1995 and 50.27% for 1994.

Net interest income was $12,274,000 for the quarter ended Dec. 31, 1995 and $11,501,000 for the quarter ended Dec. 31, 1994. This increase in net interest income was due to the increase in average earning assets. The interest rate margin was 4.27% for the quarter ended Dec. 31, 1995, and 4.26% for the quarter ended Dec. 31, 1994. Non-interest expense was $6,674,000 for the quarter ended Dec. 31, 1995, and $7,073,000 for the quarter ended Dec. 31, 1994. Non-interest income was $2,157,000 for the fourth quarter of 1995, and $1,507,000 for the fourth quarter of 1994, an increase of 43.1%. Net charge-offs of $2,435,000 and increasing the allowance for possible credit losses to $16,560,000 resulted in a provision for credit losses of $3,237,000 for the fourth quarter of 1995. The provision for credit losses was $935,000 for the fourth quarter of 1994. Gains from the sale of mortgages and securities were $271,000 for the quarter ended Dec. 31, 1995 and losses of $133,000 for the quarter ended Dec. 31, 1994.

Total loan originations were $315,784,000 for 1995 and $347,742,000 for 1994. Net charge-offs during 1995 amounted to $6,620,000, or 0.72% of average gross loans outstanding compared to $3,104,000, or 0.37% of average gross loans outstanding in 1994. Non-performing loans at Dec. 31, 1995 were $12,812,000, or 1.38% of total gross loans outstanding compared to $7,881,000, or 0.91% of total gross loans outstanding at Dec. 31, 1994. The increase in non-performing loans is primarily the result of three loans secured by commercial real estate assets being placed in non-accrual status in 1995. Specific reserves were established against these loans. Other real estate owned as a result of property acquired by foreclosure or by deed in lieu of foreclosure declined from $3,234,000 at Dec. 31, 1994 to $2,468,000 at Dec. 31, 1995. The allowance for possible credit losses was $16,560,000, or 1.79% of total gross loans outstanding at Dec. 31, 1995 and $15,847,000, or 1.83% of total gross loans outstanding at Dec. 31, 1994.

Shareholders' equity was $116,774,000, or 9.44% of assets, at Dec. 31, 1995 and $106,870,000, or 9.22% of assets, at Dec. 31, 1994. Book value per share was $18.70 at Dec. 31, 1995 and $16.60 at Dec. 31, 1994. Net loans were $909,851,000 at Dec. 31, 1995 and $848,017,000 at Dec. 31, 1994, an increase of 7.3%. Deposits were $1,006,465,000 on Dec. 31, 1995 and $962,780,000 on Dec. 31, 1994, an increase of 4.5% -0-

BSB Bancorp, Inc.

Quarter Ended December 31                  1995           1994

Net Income                             $ 3,020,000    $ 3,036,000
Earnings Per Share                         $  0.48        $  0.47

Year Ended December 31                     1995           1994

Net Income                            $ 12,594,000   $ 12,871,000
Earnings Per Share                         $  1.98        $  1.95
-0-

BSB Bancorp Inc.
Consolidated Statements of Condition

                                               Dec. 31
                                          1995          1994
ASSETS

Cash and due from banks                 $43,825,565   $28,198,939
Federal funds sold                                0    10,500,000
Total cash and cash equivalents          43,825,565    38,698,939
Investment securities (market
 value $103,592,829 and
     $86,674,143)                       103,113,635    86,685,621
Mortgage-backed securities
 (market value $144,290,262
  and $143,047,796)                     143,977,811    143,177,415
Mortgages held for sale                   1,279,802      1,782,141
Loans:
  Commercial                            455,443,997    386,875,514
  Consumer                              200,546,061    200,862,839
  Real Estate                           271,026,326    277,343,756
    Total loans                         927,016,384    865,082,109
Less: Unearned discounts                    605,479      1,218,104
  Allowance for possible
   credit losses                         16,560,000     15,847,359
 Net Loans                              909,850,905    848,016,646
Bank premises and equipment               7,288,524      7,135,591
Accrued interest receivable               8,486,094      7,697,303
Other real estate                         2,467,880      3,234,044
Intangible assets                         2,482,916      2,777,916
Other assets                             13,767,397     20,202,593
                                         ----------    ----------
                                    $1,236,540,529  $1,159,408,209

LIABILITIES AND SHAREHOLDERS' EQUITY

Due to depositors                   $1,006,465,180    $962,780,262
Borrowings                              98,948,728      79,028,336
Other liabilities                       14,352,975      10,729,852
Commitments
Shareholders' equity:
  Preferred stock, par value $.01
   per share; 2,500,000 shares
   authorized; none issued
  Common stock, par value $.01 per
   share; 10,000,000 shares
   authorized; 7,270,925 and
   4,820,617 shares issued                  72,709          48,206
  Additional paid in capital            26,861,407      26,436,429
  Undivided profits                    101,518,771      92,986,281
  Unrealized
   (depreciation) appreciation
   in securities
   available for sale, net                 168,878     (5,546,725)
  Treasury stock, at cost;
   1,027,528 and 528,419 shares        (11,848,119)    (7,054,432)
    Total shareholders' equity         116,773,646    106,869,759
                                        ----------     ----------
                                    $1,236,540,529  $1,159,408,209
-0-

BSB Bancorp, Inc.
Financial Highlights
(Dollars in thousands - except per share amounts)

                           Quarter Ended
                             Dec. 31,              Years Ended
                         1995       1994          1995      1994

Operations data

Net interest income      $12,274   $11,501      $48,613    $45,723
Provision for credit
 losses                    3,237       935        7,333      3,717
Gains (losses) on sale
 of securities               185         1           97        355
Gains (losses) on sale
 of mortgages                 86      (134)         (41)      (952)
Non-interest income        2,157     1,507        6,672      5,501
Non-interest expense       6,674     7,703       27,239     25,752
Income tax expense         1,771     1,831        8,175      8,287
Net income                 3,020     3,036       12,594     12,871

Selected Financial Data

Yield on earning assets     8.78%     8.40%        8.79%       8.00%
Cost of funds(1)            4.78      4.40         4.75        3.94
Interest rate spread
 during the period(1)       4.00      4.00         4.04        4.06
Interest rate margin
 during the period(1)       4.27      4.26         4.31        4.31
Return on average assets(1) 0.99      1.07         1.06        1.16
Return on average
 equity(1)                 10.39     10.73        10.89       11.59
Equity to assets(2)         9.44      9.22         9.44        9.22
Operating expenses to
 average assets(1)          2.19      2.49         2.29        2.31
Efficiency ratio           46.25     54.37        49.27       50.27

Per Share Data
Earnings                  $ 0.48    $ 0.47       $ 1.98      $ 1.95
Book value                $18.70    $16.60       $18.70      $16.60
Dividends declared        $ 0.20    $ 0.15       $ 0.65      $ 0.54

(1) Annualized
(2) At period ended
All share and per share amounts have been adjusted to reflect the
three-for-two stock split effective on Dec. 8, 1995.
-0-

                                               Dec. 31,      Percent
                                          1995        1994   Variance
Financial Condition Data
Assets                                $1,236,541  $1,159,408    6.65%
Net loans                                909,851     848,017    7.29
Mortgage-backed securities               143,978     143,177    0.56
Investment securities                    103,114      86,686   18.95
Deposits                               1,006,465     962,780    4.54
Borrowings                                98,949      79,028   25.21
Shareholders' equity                     116,774     106,870    9.27
Allowance for possible credit losses      16,560      15,847    4.50
Other real estate                          2,468       3,234  -23.69
Non-performing loans                      12,812       7,881   62.57
-0-

BSB Bancorp, Inc.
Consolidated Statements of Income

                                          Years Ended December 31,
                                      1995         1994         1993

Interest Income:
Interest and fees on loans        $83,584,018  $69,191,993  $65,087,665
Interest on mortgage-backed
 securities                         9,512,523   10,238,787   11,873,783
Interest on mortgages held
 for sale                             215,758      169,414      459,609
Interest on federal funds
 sold and interest-bearing
 deposits                              30,289      642,665      167,364
Interest and dividends on
 investment securities:
  U.S. Government obligations       3,104,837    2,228,350      591,050
  State and municipal obligations     447,363      493,022      320,227
  Other debt obligations            1,329,542    1,150,551    1,269,174
  Corporate stocks                    810,095      809,600    1,085,566
  Total interest income            99,034,425   84,924,382   80,854,438

Interest Expense:
Interest on savings deposits        4,376,740    5,126,801    4,824,209
Interest on time accounts          28,624,637   22,817,648   20,283,145
Interest on money market
 deposit accounts                  10,490,989    6,345,394    4,257,203
Interest on NOW accounts              762,544      795,577      953,933
Interest on borrowed funds          6,166,894    4,116,348    4,943,423
 Total interest expense            50,421,804   39,201,768   35,261,913

Net interest income                48,612,621   45,722,614   45,592,525
Provision for credit
 losses                             7,332,612    3,717,184    5,580,417

Net interest income after
 provision for credit losses       41,280,009   42,005,430   40,012,108
Gains (losses) on sale of
 securities                            97,165      355,383    1,421,016
Gains (losses) on sale of
 mortgages                            (41,280)    (951,656)     129,108

Non-interest Income:
Service charges on deposit
 accounts                           1,609,229    1,393,435    1,218,258
Credit card fees                    2,559,668    1,688,471      899,619
Mortgage servicing fees               927,420      850,985      690,040
Fees and commissions-
 brokerage services                   335,655      328,914      382,460
Trust fees                            550,990      475,755      410,944
Other charges, commissions,
 and fees                             689,596      763,227      864,934
 Total non-interest income          6,672,558    5,500,787    4,466,255

Non-interest expense:

Salaries, pensions, and
 other employee benefits           12,023,425   12,158,078   11,677,083
Building occupancy                  2,302,189    2,180,724    2,074,000
Computer service fees                 858,628      724,397      652,732
Services                            2,073,155    1,809,870    1,336,621
FDIC insurance                      1,145,297    2,017,209    1,847,394
Goodwill                              295,000      172,084            0
Interchange fees                    1,896,288    1,318,173      645,796
Other real estate                   1,097,340      313,990      395,119
Other expenses                      5,547,784    5,057,070    5,323,088
 Total non-interest expense        27,239,106   25,751,595   23,951,833
Income before income taxes         20,769,346   21,158,349   22,076,654
Provision for income taxes          8,175,255    8,287,008    8,680,245

Net income                        $12,594,091  $12,871,341 $ 13,396,409

Earnings per share(a)             $      1.98  $      1.95 $       2.03

(a) Earnings per share is based on 6,360,664, 6,591,401 and
6,603,398 weighted average shares outstanding, after adjustment to
reflect the three-for-two stock split effective on Dec. 8, 1995, for
the years ended Dec. 31, 1995, 1994, and 1993, respectively.

CONTACT: BSB Bancorp Inc., Binghamton

William H. Rincker, 607/779-2536