BCSB Bankcorp, parent of Baltimore County Savings Bank, reported a loss of $6.9 million for the quarter ending June 30, according to filings with the Securities and Exchange Commission.
The bank blamed a previously announced loss in a check-kiting scheme.
“The company continues to aggressively pursue collection of the loss from the customer and there is also the possible recovery from insurance policies,” BCSB stated in its earnings report.
In documents filed in Baltimore County Circuit Court, BCSB identified the customer involved in the alleged check-kiting scheme as now out-of-business A & B Check Cashing, based in Baltimore.
Interim President David Meadows stated that BCSB “will continue its strategic focus centered on retail growth of deposits and loans while correspondingly reducing the level of borrowings and investments.”
