<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 23, 1998
BSB BANCORP, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-17177 16-1327860
- --------------------------------------------------------------------------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
58-68 Exchange Street, Binghamton, New York 13902
------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (607) 779-2525
---------------
Not Applicable
----------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS.
------------
On July 23, 1998, BSB Bancorp, Inc. issued a press release announcing its
earnings for the quarter ended June 30, 1998. A copy of the press release is
attached hereto as Exhibit 99.
(c) Exhibits.
Exhibit No. Description
- ----------- -----------
99 Press Release, Dated July 23, 1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BSB BANCORP, INC.
(Registrant)
Date: July 23, 1998 By: /s/ Alex S. DePersis
--------------------
Alex S. DePersis
President and Chief Executive Officer
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Description Page
- ----------- ----------- ----
99 Press Release, Dated July 23, 1998...............E-1
<PAGE>
Alex S. DePersis
President & CEO
(607) 779-2584
Website: www.bsbbank.com
BSB BANCORP, INC. EARNS $5,004,000 IN SECOND QUARTER OF 1998
Binghamton, NY, July 23, 1998 - BSB Bancorp, Inc. (NASDAQ:BSBN), holding
company for BSB Bank & Trust Company, announced record net income for the
quarter ended June 30, 1998 of $5,004,000, compared to $4,118,000 for the same
quarter in 1997, an increase of 21.5%. The return on average equity increased
to 15.79% for the quarter ended June 30, 1998 from 14.40% for the same quarter
in 1997. The return on average assets was 1.16% for the quarter ended June 30,
1998 and 1.14% for the quarter ended June 30, 1997. For the quarter ended June
30, 1998, diluted earnings per share increased 19.1% to $0.56, compared to $0.47
for the same period in 1997.
Net income for the six months ended June 30, 1998 was $9,514,000, compared to
$8,128,000 for the same period in 1997, an increase of 17.1%. For the six months
ended June 30, 1998, diluted earnings per share increased 15.1% to $1.07,
compared to $0.93 for the same period in 1997.
Alex S. DePersis, President and CEO of the Bank said, "We continue to focus on
several factors which have provided solid results for the second quarter of
1998. Net interest income continues to grow due to continued strong loan
originations during the quarter. Non-interest income also continued to
increase, with a 23% rise over the second quarter of 1997. Cost control
measures have produced an efficiency ratio that remains one of the best in the
country. These factors can be attributed to the strong financial results
produced for the second quarter of 1998."
Net interest income was $17,556,000 for the second quarter of 1998, compared
to $14,754,000 for the second quarter of 1997, an increase of 19.0%. The
interest rate margin remained stable at 4.30% for the second quarter of 1998
compared to 4.32% for the second quarter of 1997. The provision for credit
losses was $2,919,000 for the quarter ended June 30, 1998 and $2,354,000 for the
quarter ended June 30, 1997. Non-performing assets decreased 9.2% from $12.4
million as of June 30, 1997 to $11.3 million as of June 30, 1998. The allowance
for possible credit losses increased from $17.9 million as of June 30, 1997 to
$20.7 million as of June 30, 1998. Net charge-offs during the second quarter of
1998 amounted to $2,027,000, or 0.63% of average loans outstanding compared to
$1,995,000, or 0.74% of average loans outstanding in the second quarter of 1997.
Non-performing loans at June 30, 1998 were $8,931,000, or 0.69% of total gross
loans outstanding compared to $8,522,000, or 0.77% of total gross loans
outstanding at June 30, 1997. Other real estate owned as a result of property
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
BSB BANCORP, INC. (DOLLARS IN THOUSANDS-EXCEPT PER SHARE DATA)
CONSOLIDATED STATEMENTS OF INCOME
- -------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1998 1997 1998 1997
------- ------- ------- -------
Interest income:
Interest and fees on loans $30,381 $25,085 $58,772 $48,705
Interest on investment securities 5,649 4,845 10,612 9,903
Interest on mortgages held for sale 363 72 538 85
- ------------------------------------------------------- ------- ------- ------- -------
Total interest income 36,393 30,002 69,922 58,693
- ------------------------------------------------------- ------- ------- ------- -------
Interest expense:
Interest on savings deposits 982 981 1,915 1,926
Interest on time accounts 11,765 8,699 22,124 17,029
Interest on money market deposit accounts 3,094 2,900 6,118 5,670
Interest on NOW accounts 230 203 445 397
Interest on borrowed funds 2,766 2,465 5,480 4,596
- ------------------------------------------------------- ------- ------- ------- -------
Total interest expense 18,837 15,248 36,082 29,618
- ------------------------------------------------------- ------- ------- ------- -------
Net interest income 17,556 14,754 33,840 29,075
Provision for credit losses 2,919 2,354 5,704 4,813
- ------------------------------------------------------- ------- ------- ------- -------
Net interest income after provision for credit losses 14,637 12,400 28,136 24,262
Gains (losses) on sale of securities (359) (14) (503) (18)
Losses on sale of loans (133) (89) (380) (90)
Non-interest income:
Service charges on deposit accounts 667 549 1,276 1,067
Credit card fees 315 216 555 358
Mortgage servicing fees 294 277 573 556
Fees and commissions-brokerage services 167 91 250 208
Trust fees 242 162 473 321
Other charges, commissions, and fees 313 330 581 493
- ------------------------------------------------------- ------- ------- ------- -------
Total non-interest income 1,998 1,625 3,708 3,003
- ------------------------------------------------------- ------- ------- ------- -------
Non-interest expense:
Salaries, pensions, and other employee benefits 3,727 3,345 7,403 6,720
Building occupancy 690 688 1,370 1,385
Dealer commission expense 389 520 614 764
Computer service fees 293 224 549 438
Services 768 583 1,514 1,024
FDIC insurance 43 40 82 60
Goodwill 74 74 148 148
Interchange fees 231 136 399 241
Other real estate 61 197 81 447
Other expenses 1,765 1,415 3,264 2,611
- ------------------------------------------------------- ------- ------- ------- -------
Total non-interest expense 8,041 7,222 15,424 13,838
- ------------------------------------------------------- ------- ------- ------- -------
Income before income taxes 8,102 6,700 15,537 13,319
Provision for income taxes 3,098 2,582 6,023 5,191
- ------------------------------------------------------- ------- ------- ------- -------
NET INCOME $ 5,004 $ 4,118 $ 9,514 $ 8,128
======================================================= ======= ======= ======= =======
Earnings per share:
Basic $0.58 $0.48 $1.11 $0.96
Diluted $0.56 $0.47 $1.07 $0.93
</TABLE>
<PAGE>
BSB BANCORP, INC. (Dollars In Thousands-Except Per Share Data)
CONSOLIDATED STATEMENTS OF CONDITION
- ------------------------------------
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1998 1997
----------- -------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 66,205 $ 36,066
Investment securities available for sale 354,844 271,120
Investment securities held to maturity (market value $11,192
and $14,141) 11,036 13,868
Mortgages held for sale 14,740 7,459
Loans:
Commercial 727,954 654,243
Consumer 337,985 299,307
Real estate 231,559 252,247
- -------------------------------------------------------------- ---------- ----------
Total loans 1,297,498 1,205,797
Less: Unearned discounts 255 595
Allowance for possible credit losses 20,746 19,207
- -------------------------------------------------------------- ---------- ----------
Net loans 1,276,497 1,185,995
Bank premises and equipment 9,537 9,500
Accrued interest receivable 12,597 11,118
Other real estate 2,335 2,784
Intangible assets 1,745 1,893
Other assets 23,104 20,768
- -------------------------------------------------------------- ---------- ----------
$1,772,640 $1,560,571
========== ==========
LIABILITIES & SHAREHOLDERS' EQUITY
Due to depositors $1,411,797 $1,239,508
Borrowings 210,187 178,644
Other liabilities 22,390 21,553
Commitments
Shareholders' Equity:
Preferred Stock, par value $0.01 per share;
authorized 2,500,000 shares; none issued 0 0
Common Stock, par value $0.01 per share;
authorized 30,000,000 shares; 11,204,484
and 11,159,924 shares issued 112 112
Additional paid-in capital 29,705 29,215
Undivided profits 127,761 122,029
Accumulated comprehensive income 461 (733)
Treasury stock, at cost: 2,603,192 and 2,602,692 shares (29,773) (29,757)
- -------------------------------------------------------------- ---------- ----------
Total Shareholders' Equity 128,266 120,866
- -------------------------------------------------------------- ---------- ----------
$1,772,640 $1,560,571
========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BSB BANCORP, INC. (IN THOUSANDS-EXCEPT PER SHARE AMOUNTS)
FINANCIAL HIGHLIGHTS
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
QUARTER ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
OPERATIONS DATA 1998 1997 1998 1997
- -------------------------------------------- ------- ---------- ---------- -------
Total interest income $36,393 $ 30,002 $ 69,922 $58,693
Total interest expense 18,837 15,248 36,082 29,618
Net interest income 17,556 14,754 33,840 29,075
Provision for credit losses 2,919 2,354 5,704 4,813
Gains (losses) on sale of securities (359) (14) (503) (18)
Gains (losses) on sale of loans (133) (89) (380) (90)
Non-interest income 1,998 1,625 3,708 3,003
Operating expense 8,041 7,222 15,424 13,838
Income tax expense 3,098 2,582 6,023 5,191
Net income 5,004 4,118 9,514 8,128
- -------------------------------------------- ------- ---------- ---------- -------
SELECTED FINANCIAL DATA
- --------------------------------------------
Yield on earning assets (1) 8.91% 8.79% 8.88% 8.76%
Cost of funds (1) 4.78 4.67 4.76 4.63
Interest rate spread during the period (1) 4.13 4.12 4.12 4.13
Interest rate margin during the period (1) 4.30 4.32 4.30 4.34
Return on average assets (1) 1.16 1.14 1.15 1.15
Return on average equity (1) 15.79 14.40 15.22 14.37
Equity to assets (2) 7.24 7.79 7.24 7.79
Operating expenses to average assets (1) 1.87 2.01 1.86 1.96
Efficiency ratio 41.12 44.09 41.08 43.14
- -------------------------------------------- ------- ---------- ---------- -------
PER SHARE DATA
- --------------------------------------------
Basic earnings $ 0.58 $ 0.48 $ 1.11 $ 0.96
Diluted earnings $ 0.56 $ 0.47 $ 1.07 $ 0.93
Book value $ 14.91 $ 13.41 $ 14.91 $ 13.41
Dividends paid $ 0.22 $ 0.17 $ 0.44 $ 0.34
Dividend payout ratio 37.81% 34.45% 39.75% 34.85%
(1) Annualized (2) At period ended
- --------------------------------------------
FINANCIAL CONDITION DATA AT JUNE 30, 1998 1997 PERCENT CHANGE
- -------------------------------------------- ---------- ---------- -------
Assets $1,772,640 $1,465,726 20.94%
Earning assets 1,657,117 1,373,804 20.62
Gross loans 1,297,498 1,106,891 17.22
Investment securities 365,880 281,019 30.20
Deposits 1,411,797 1,138,868 23.96
Borrowings 210,187 194,894 7.85
Shareholders' equity 128,266 114,212 12.31
Allowance for possible credit losses 20,746 17,915 15.80
Non-performing loans 8,931 8,522 4.80
Other real estate 2,335 3,891 -39.99
Trust assets 277,528 224,256 23.75
Mortgage serviced loans 437,118 358,757 21.84
- -------------------------------------------- ---------- ---------- -------
AVERAGE BALANCES (YTD)
- --------------------------------------------
Assets $1,661,031 $1,411,971 17.64
Earning assets 1,574,319 1,339,586 17.52
Gross loans 1,262,035 1,062,690 18.76
Investment securities 318,275 292,191 8.93
Deposits 1,316,458 1,114,893 18.08
Borrowings 198,106 165,624 19.61
Shareholders' equity 125,054 113,086 10.58
Shares outstanding 8,590,157 8,475,878 1.35
Diluted shares outstanding 8,885,833 8,724,880 1.84
</TABLE>
<PAGE>
acquired by foreclosure or by deed in lieu of foreclosure declined from
$3,891,000 at June 30, 1997 to $2,335,000 at June 30, 1998.
The Bank had net losses on the sale of loans and securities of $492,000 for
the quarter ended June 30, 1998 and net losses of $103,000 for the quarter ended
June 30, 1997. Non-interest income was $1,998,000 for the second quarter of
1998 and $1,625,000 for the second quarter of 1997. Operating expense increased
from $7,222,000 for the second quarter of 1997 to $8,041,000 for the second
quarter of 1998. The Bank's Efficiency Ratio, which consists of operating
expense divided by recurring revenues (net interest income and non-interest
income) on a pre-tax basis, remains very favorable compared to our peer groups',
at 41.12% for the second quarter of 1998.
Total assets were $1,772,640,000 at June 30, 1998 and $1,465,726,000 at June
30, 1997, an increase of 20.9%. Shareholders' equity was $128,266,000, or 7.24%
of assets, at June 30, 1998 and $114,212,000, or 7.79% of assets, at June 30,
1997. Book value per share was $14.91 at June 30, 1998 and $13.41 at June 30,
1997. Gross loans were $1,297,498,000 at June 30, 1998 and $1,106,891,000 at
June 30, 1997, an increase of 17.2%. Total deposits were $1,411,797,000 at June
30, 1998 and $1,138,868,000 at June 30, 1997, an increase of 24.0%. Borrowings
increased from $194,894,000 at June 30, 1997 to $210,187,000 at June 30, 1998
primarily to fund loan growth. The allowance for possible credit losses
increased from $17,915,000 at June 30, 1997 to $20,746,000 at June 30, 1998, an
increase of 15.8%.
<TABLE>
<CAPTION>
BSB Bancorp, Inc.
Quarters Ended June 30, 1998 1997
- --------------------------- ---------- ----------
<S> <C> <C>
Net Income $5,004,000 $4,118,000
Earnings Per Share
Basic $ 0.58 $ 0.48
Diluted $ 0.56 $ 0.47
Six Months Ended June 30, 1998 1997
- --------------------------- ---------- ----------
Net Income $9,514,000 $8,128,000
Earnings Per Share
Basic $ 1.11 $ 0.96
Diluted $ 1.07 $ 0.93
</TABLE>
