BCSB Bankcorp Inc. in Baltimore said Friday that a recent payment by its insurance provider has helped it recoup some losses from an alleged check-kiting scheme.
But it said it would still take some time for the company to recover the bulk of the loss.
The $768 million-asset BCSB said that its insurance provider paid the company $3.3 million as recovery from losses sustained last year in the scheme, said to be the work of a check cashier at A&B Check Cashing of Baltimore. BCSB took an after-tax charge of $6.9 million for its fiscal third quarter of 2006, which ended last June 30.
As a result of the partial recovery from the insurance payment, BCSB will recognize additional income of $2.2 million, after taxes, during its second fiscal quarter, which ends March 31.
