BCSB Bankcorp Inc., the holding company of Baltimore County Savings Bank, will settle with its insurance provider for $3.5 million. The settlement is the result of losses sustained by County Savings as a result of a check-kiting scheme. A commercial deposit customer during the quarter that ended in June of 2006 was responsible for the plot.
Additional recoveries of cash are expected to take an extended period of time. After taxes, the insurance check is expected to clear for about $2.2 million. As of Friday, shares of BCSB were unchanged for the day, trading at $15.41.
