Here's at least 17 reasons to keep YOUR money home and
safe AWAY from BCSB's grubby hands: DON'T COME HOME TO BCSB!
Baltimore County Savings Bank prospectus dated February 11, 2008.
http://livermore.brand.edgar-online.com/fetchFilingFrameset.aspx?Type=HTML&FilingID...
Risks Related to Our [BCSB] Business:
1) We are subject to the restrictions and conditions of a Supervisory
Agreement with, and other commitments we have made to, the Office of
Thrift Supervision. Failure to comply with the Supervisory Agreement
could result in additional enforcement action against us, including
the imposition of monetary penalties, and could adversely affect our
ability to meet our obligations under our trust preferred securities.
[And this is supposed to be a BAD thing considering that BCSB LOST
$6.9 million dollars in a check kiting scheme while squandering
ANOTHER $14.2 million dollars over the past 2 years?]
2) We have had losses and low earnings in recent years, and if we
cannot increase our income to competitive levels our stock price may
be adversely affected. [BCSB neglected to mention that the total
aggregate fiscal LOSS equals $21.1 million dollars during the past 2
years!]
3) Our increased emphasis on commercial real estate and commercial
lending may expose us to increased lending risks. [Ooooh, now is the
time to interject those words "subprime mortgage loan mess" which BCSB
claims it has no direct exposure too!]
4) Certain interest rate movements may decrease income and asset
value. [Is that why BCSB reported LOSSES totalling over $21.1 million
dollars during the past 2 years? Me don't think so!]
5) We do not expect to recover all of our losses from a recent check
kiting scheme, and our recovery efforts are expected to take a long
period of time and may result in further expenses or litigation. [In
another's words, BCSB LOST $6.9 million dollars to a check kiting
scheme which took the bank months to detect and BCSB LOST (ie.
squandered) another $14.2 million dollars after that! Now BCSB needs
to raise MORE capital and see how long it takes them to SQUANDER
THAT!]
6) We currently do not pay dividends and may not resume the payment of
dividends. [Yeah, BCSB has had "free use" of shareholder monies since
they stopped paying a dividend on December 1, 2006. Now they want you
to RISK even more money only for you to get nothing in return with the
prospect LOOMING LARGE of BCSB going under!]
7) A downturn in the local economy or a decline in real estate values
could hurt our profits. [See #3 above]
8) Strong competition within Baltimore County Savings Bank's market
area could adversely affect profits and slow growth. [They forgot to
mention POOR Leadership from within! Also, why doesn't BCSB see how
many MORE branches they can build and open between Carney and White
Marsh which already has 4 branches (the other two include Honeygo and
Perry Hall) within 5 miles of each other? I guess that is why Joe
Bouffard needs that company car allowance of $12,000 per year. BTW:
What kind of Sherman tank is this guy driving anyway?]
9) We operate in a highly regulated environment and may be adversely
affected by changes in laws and regulations. [See #1 above]
10) Our stock price may decline when trading commences. [Yeah, the
stock was trading for $7.10 as of February 28, 2008 and BCSB now wants
the general public to FORK over $10.00 per share with this second-step
conversion! Something's gotta give (ie. your money)]
11) Additional expenses following the conversion from the compensation
and benefit expenses associated with the implementation of the new
stock-based benefit plans will adversely affect our profitability.
[Yeah, they conveniently FORGOT to mention BCSB's executive/director
compensation which includes (this is NOT made-up): salary, bonus,
employment agreements, separation agreements, equity awards, stock
options, pension benefits, deferred compensation, post-termination
benefits, severance agreements, supplemental executive retirement
plans, survivor income plans, 401k plans, employee stock ownership
plans, restricted stock awards and future equity incentive plans. And
let's not forget Joseph J. Bouffard $12,000 per year automobile
allowance!]
12) Our low return on equity after the conversion may negatively
affect the value of our common stock. [The factual truth that BCSB is
the WORST Performing Bank in the Baltimore area when compared to all
other peer thrifts including: CRRB, FMAR, FULT (formerly CBMD), PBKS,
PNC and SUSQ which denotes Carrollton Bank, 1st Mariner Bank, Fulton
Financial Corporation (formerly Columbia Bank), Provident Bankshares
Corporation, PNC Financial Services Group Inc (formerly Mercantile
Bankshares Corporation) and Susquehanna Bancshares Inc, respectively
SPEAKS VOLUMES.]
13) We have broad discretion in allocating the proceeds of the
offering. Our failure to utilize effectively such proceeds would
reduce our profitability. [Is this just another way of telling
shareholders that BCSB squandered $22 million dollars in the past and
MAY do that AGAIN?]
14) Issuance of shares for benefit programs will dilute your ownership
interest. [Gee, aren't you GLAD to now know this? What use to be
$10.00 per BCSB share in 1998 that is now $7.10 per BCSB share as of
February 28, 2008 (ten years later) is surely PROOF of Dilution...
DON'T YOU THINK?]
15) Stockholders of BCSB Bankcorp who receive BCSB Bancorp common
stock in exchange for their stock in the conversion will receive
lesser rights as stockholders than they currently have. [Lesser rights
and not MORE rights? YOU'RE KIDDING... AREN'T YOU?]
16) Office of Thrift Supervision regulations and anti-takeover
provisions in our articles of incorporation restrict the accumulation
of our common stock, which may adversely affect our stock price. [See
#1 above]
17) There may be a limited market for our common stock, which may
lower our stock price. [With an Average Daily Volume of only 1,822.22
shares traded per day on the NASDAQ market, one could say that BCSB
has a VERY LIMITED Market!]
The ONLY Question IS: WILL YOU BE LEFT HOLDING THE BAG (eg. worthless
BCSB stock)?
