BCSB Bankcorp Inc. of Baltimore announced that it would take an after-tax charge of $6.9 million, or $1.18 a share, for its fiscal third quarter, which ended Friday, because of losses from a check-kiting scheme.
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The charge, announced Thursday, is likely to wipe out BCSB's earnings for this fiscal year. The $800 million-asset thrift company earned $601,000, or 10 cents a share, in its last fiscal year.
The parent of Baltimore County Savings Bank said that it is trying to collect the lost money from the customer responsible for the scheme, and that insurance policies may also provide funds. The customer's bankruptcy filing will drag out the recovery process, it said.
