BSB president notes decline in delinquencies

CNY Business Journal (1996+), May 18, 2001

BSB Bancorp, Inc. (NASDAQ/NMS: BSBN), holding company for BSB Batik & Trust Company, reported net income for the quarter ended March 31 of $5.003 million, or 49 cents per diluted share, compared to a loss of $8.131 million, or 79 cents per diluted share, for the fourth quarter of 2000, and net income of $5.748 million, or 56 cents per diluted share, for the same quarter in 2000.

Howard W. Sharp, president and CEO of the bank, said, "Consistent with our expectations when we significantly increased our loan loss reserves in the fourth quarter last year, nonperforming loans rose during the quarter. However, we have begun to see some decline in delinquencies."

Sharp continued, "The formation of a special assets group was completed during the quarter. ... We previously announced the hiring of a senior risk manager, who during the quarter has completely revamped the bank's lending policies."

Net interest income was $20.648 million for the first quarter, compared to $21.877 million for the fourth quarter of 2000, and $22.379 million for the first quarter of 2000. The decrease in net interest income from the fourth quarter of 2000 to the first quarter of 2001, the company said, was primarily the result of lower short-term interest rates which reduces the short-term yield on the bank's loans that are tied to a prime rate. It also attributed the lower net interest income for the first quarter of 2001, compared to the first quarter of 2000, to the higher levels of nonperforming loans and higher costs of funding in 2001.

Nonperforming assets increased to $58.233 million at March 31, compared to $32.461 million at Dec. 31, 2000, and $12.229 million at March 31, 2000.

Total assets were $2,230,864,000 at March 31, $2,311,675,000 at Dec. 31, 2000, and $2,230,864,000 at March 31, 2000. Book value per share was $15.56 at March 31, $15.08 at Dec. 31, 2000, and $15.31 at March 31, 2000.