UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q

(Mark One)


  /X/     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
          ACT OF 1934

          For the quarterly period ended December 31, 2003

          OR

 /X/      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

          For the transition period from ______ to ______

                         Commission File Number: 0-24589

                               BCSB BANKCORP, INC.
             ------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)


          UNITED STATES                                 52-2108333
----------------------------------                ---------------------
(State or Other Jurisdiction of                     (I.R.S. Employer
 Incorporation or Organization)                    Identification No.)

            4111 E. JOPPA ROAD, SUITE 300, BALTIMORE, MARYLAND 21236
            --------------------------------------------------------
                    (Address of Principal Executive Offices)

                             (410) 256-5000
                -----------------------------------------------
                Issuer's Telephone Number, Including Area Code)

                                       N/A
              ----------------------------------------------------
              (Former Name, Former Address and Former Fiscal Year,
                         if Changed Since Last Report)

Indicate  by check  mark  whether  the  registrant:  (1) has filed  all  reports
required  to be filed by  Section  13 or 15(d) of the  Securities  Exchange  Act
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes X  No
                                       --   --

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act). Yes   No X
                                               --    --

     As of January 31,  2004,  the issuer had  5,898,593  shares of Common Stock
issued and outstanding.

<PAGE>

                                    CONTENTS
<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----

PART I.  FINANCIAL INFORMATION
         ---------------------

Item 1.  Financial Statements
<S>                                                                                                             <C>
         Consolidated Statements of Financial Condition as of
                  December 31, 2003 (unaudited) and September 30, 2003............................................2

         Consolidated Statements of Operations for the Three Months  Ended
                  December 31, 2003 and 2002  (unaudited).........................................................3

         Consolidated Statements of Comprehensive Income for the Three Months  Ended
                  December 31, 2003 and 2002 (unaudited)......................................................... 4

         Consolidated Statements of Cash Flows for the Three Months Ended
                  December 31, 2003 and 2002 (unaudited)......................................................... 5

     Notes to Consolidated Financial Statements...................................................................8

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operation....................11

Item 3.  Quantitative and Qualitative Disclosures About Market Risk..............................................20

Item 4.  Controls and Procedures.................................................................................21


PART II.  OTHER INFORMATION
          -----------------

Item 1.  Legal Proceedings.......................................................................................22

Item 2.  Changes in Securities and Use of Proceeds...............................................................22

Item 3.  Defaults Upon Senior Securities.........................................................................22

Item 4.  Submission of Matters to a Vote of Security Holders.....................................................22

Item 5.  Other Information.......................................................................................22

Item 6.  Exhibits and Reports on Form 8-K........................................................................22


SIGNATURES.......................................................................................................24

CERTIFICATIONS...................................................................................................24

</TABLE>











                                       1
<PAGE>



                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                 ----------------------------------------------
<TABLE>
<CAPTION>

                                                                            December 31,        September 30,
                                                                               2003                 2003
                                                                        -------------------  -----------------
<S>                                                                              <C>                  <C>
                                                                             (Unaudited)
                                      Assets
                                      ------
Cash                                                                     $   12,356,894      $   11,032,415
Interest bearing deposits in other banks                                      5,846,539          11,288,223
Federal funds sold                                                            1,328,564             987,636
Investment securities, held to maturity                                       3,003,559           2,500,000
Investment securities, available for sale                                   114,370,984         121,289,555
Loans receivable, net                                                       359,341,536         365,054,645
Loans held for sale                                                             190,000             247,600
Mortgage backed securities, held to maturity                                 17,694,254          18,394,439
Mortgage backed securities, available for sale                              113,637,576         116,204,401
Premises and equipment, net                                                   9,088,613           9,226,887
Federal Home Loan Bank of Atlanta stock                                       3,304,900           3,304,900
Accrued interest receivable                                                   2,035,173           2,114,609
Prepaid and deferred income taxes                                             2,041,321           1,752,582
Bank Owned Life Insurance                                                    11,546,602                  --
Goodwill                                                                      2,294,327           2,294,327
Core deposit intangible                                                         407,000             421,000
Other assets                                                                  1,770,429           2,084,630
                                                                         --------------      --------------
Total assets                                                             $  660,258,271      $  668,197,849
                                                                         ==============      ==============
                Liabilities and Stockholders' Equity
                ------------------------------------
Liabilities
-----------
  Deposits                                                               $  555,747,735      $  551,928,619
  Advances from the Federal Home Loan Bank of Atlanta                        32,217,812          32,267,861
  Trust Preferred Securities                                                 22,500,000          22,500,000
  Advance payments by borrowers for taxes and insurance                         855,220             854,694
  Income taxes payable                                                          186,371             193,051
  Payables to disbursing agents                                                 538,726             136,352
  Accounts payable Trade Date Securities                                      2,000,000          13,998,307
  Dividends payable                                                             267,955             266,329
  Other liabilities                                                           1,673,193           1,284,720
                                                                         --------------      --------------
Total liabilities                                                           615,987,012         623,429,933

Commitments and contingencies
Stockholders' Equity
--------------------
  Common stock (Par value $.01 - 13,500,000 authorized, 5,898,593
   and 5,885,593 shares issued and outstanding
   at December 31, 2003 and September 30, 2003)                                  58,986              58,856
  Additional paid-in capital                                                 20,794,994          20,652,137
  Obligation under Rabbi Trust                                                1,251,817           1,243,469
  Retained earnings (substantially restricted)                               25,488,342          25,556,888
  Accumulated Other Comperhensive Income (net of taxes)                      (1,396,052)           (770,874)
  Employee Stock Ownership Plan                                                (730,328)           (776,060)
  Stock held by Rabbi Trust                                                  (1,196,500)         (1,196,500)
                                                                         --------------      --------------
  Total Stockholders' Equity                                                 44,271,259          44,767,916
                                                                         --------------      --------------
Total liabilities and Stockholders' Equity                                $ 660,258,271       $ 668,197,849
                                                                         ==============      ==============
</TABLE>

The accompanying notes to the consolidated  financial statements are an integral
part of these statements.

                                       2
<PAGE>

                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland

                CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                -------------------------------------------------
<TABLE>
<CAPTION>
                                                                 For Three Months Ended
                                                                       December 31,
                                                                 ------------------------
                                                                  2003              2002
                                                                --------          --------
<S>                                                               <C>               <C>
Interest Income
---------------
  Interest and fees on loans                                $   5,652,851      $ 7,007,783
  Interest on mortgage-backed securities                        1,200,449        1,055,779
  Interest and dividends on investment securities                 943,341          527,281
  Other interest income                                            13,567           91,146
                                                            -------------      -----------
Total interest income                                           7,810,208        8,681,989

Interest Expense
----------------
  Interest on deposits                                          3,371,172        3,675,763
  Interest on borrowings - short term                              44,203           56,975
  Interest on borrowings-long term                                260,527          274,773
  Other interest expense                                          267,688          178,726
                                                            -------------      -----------
Total interest expense                                          3,943,590        4,186,237
                                                            -------------      -----------

  Net interest income                                           3,866,618        4,495,752
  Provision for losses on loans                                   181,773          281,998
                                                            -------------      -----------
  Net interest income after provision
     for losses on loans                                        3,684,845        4,213,754
Other Income
------------
  Gain on sale of  repossessed assets                              77,388               --
  Gain on sale of loans                                            24,002           66,985
  Fees and charges on loans                                        55,194           50,745
  Fees on transaction accounts                                    211,184          129,290
  Rental income                                                    31,804           37,047
  Gain (Loss) from sale of Investments                            (12,746)          25,000
  Gain from sale of Mortgage Backed Securities                      7,548           70,010
  Income from Bank Owned Life Insurance                           121,602               --
  Miscellaneous income                                              9,585           46,677
                                                            -------------      -----------
  Net other income                                                525,561          425,754
Non-Interest Expenses
---------------------
  Salaries and related expense                                  2,175,609        2,137,591
  Occupancy expense                                               486,905          394,983
  Deposit insurance premiums                                       52,987           49,618
  Data processing expense                                         386,273          411,591
  Property and equipment expense                                  301,000          310,508
  Professional fees                                                65,103           58,176
  Advertising                                                     241,267          227,764
  Telephone, postage and office supplies                          146,124          154,650
  Other expenses                                                   75,521          162,900
                                                            -------------      -----------
  Total non-interest expenses                                   3,930,789        3,907,781
                                                            -------------      -----------
Income before tax provision                                       279,617          731,727
Income tax provision                                               91,560          279,218
                                                            -------------      -----------

Net income                                                  $     188,057      $   452,509
                                                            =============      ===========
Basic and diluted earnings per share                        $        0.03      $      0.08
                                                            =============      ===========
</TABLE>

The accompanying notes to the consolidated  financial statements are an integral
part of these statements.



                                       3

<PAGE>



                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 -----------------------------------------------
                                   (UNAUDITED)
                                   -----------

<TABLE>
<CAPTION>

                                                                                 For Three  Months Ended
                                                                                        December 31,
                                                                               ---------------------------
                                                                               2003                   2002
                                                                               ----                   ----
<S>                                                                            <C>                  <C>
Net Income                                                                   $  188,057          $   452,509
Other comprehensive income, net of tax:
 Unrealized net holding gains (losses) on
  available-for-sale portfolios, net of tax $(393,545)and (114,474)            (628,369)             185,510
Reclassification adjustment for (gains) losses
  included in net income, net of tax $ 2,007 and (36,256)                         3,191              (58,754)
                                                                             ----------          -----------

Comprehensive income                                                         $ (437,121)         $   579,265
                                                                             ==========          ===========
</TABLE>

The accompanying notes to the consolidated financial statements are an integral
part of these statements.




                                       4
<PAGE>


                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

                CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                -------------------------------------------------


<TABLE>
<CAPTION>
                                                                              For Three Months Ended
                                                                                     December 31,
                                                                           ------------------------------
                                                                              2003                2002
                                                                           ----------          ----------
<S>                                                                             <C>                <C>
Operating Activities
   Net Income                                                              $   188,057         $   452,509
  Adjustments to Reconcile Net Income to Net
  Cash Used by Operating Activities
  ---------------------------------
    Accretion of discount on investments                                       (19,899)             (4,652)
    Dividends on Investment Securities                                        (264,038)           (211,204)
    (Gain) Loss on sale of investments                                          12,746             (25,000)
    Loans originated for sale                                               (2,696,000)         (2,108,541)
    Loans sold                                                               2,777,602           1,923,264
    Gain on sale of loans                                                      (24,002)            (66,985)
    Loan fees and costs deferred, net                                          (20,339)            (73,142)
    Amortization of deferred loan fees and cost, net                           (85,054)            (17,136)
    Provision for losses on loans                                              181,773             281,998
    Non-cash compensation under Stock-Based Benefit Plan                        77,276              57,665
    Amortization of premium on mortgage backed securities                      122,976             139,569
    Amortization of purchase premiums and discounts, net                       (31,708)           (260,897)
    Gain on sale of mortgaged backed securities                                 (7,548)            (70,010)
    Provision for depreciation                                                 236,385             241,983
    Gain on sale of repossessed assets                                         (77,388)                 --
    Increase in cash surrender value of bank owned life insurance             (121,602)                 --
    Decrease in accrued interest receivable                                     79,436             401,271
    Decrease in prepaid income taxes                                           102,799             187,556
    Decrease in other assets                                                   314,201             253,990
    Decrease in accrued interest payable on deposits                            (1,688)            (39,955)
    Decrease in income taxes payable                                            (6,680)            (26,391)
    Decrease in accounts payable Trade Date Securities                     (11,998,307)                 --
    Increase in other liabilities and payables to
          disbursing agents                                                    790,847           1,033,656
    Increase in obligation under Rabbi-Trust                                     8,348               9,725
                                                                           -----------         -----------
        Net cash (used) provided by operating activities                   (10,461,807)          2,079,273
</TABLE>


                                       5
<PAGE>

                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

                CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                -------------------------------------------------


<TABLE>
<CAPTION>
                                                                                 For Three Months Ended
                                                                                        December 31,
                                                                                2003                2002
                                                                            -----------         ------------
<S>                                                                             <C>                 <C>
Cash Flows from Investing Activities
------------------------------------
    Purchase of Bank Owned Life Insurance                                  $ (11,425,000)      $          --
    Purchases of investment securities - available for sale                   (4,003,125)        (24,080,065)
    Proceeds from maturities of investment securities - available for sale     5,500,000           5,500,000
    Proceeds from sale of investment securities- available for sale            4,987,254           1,025,000
    Purchases of investment securities - held to maturity                     (1,003,750)                 --
    Proceeds from maturities of investment securities - held to maturity         500,000           1,000,000
    Longer term loans originated                                             (15,411,981)        (16,507,135)
    Principal collected on longer term loans                                  18,252,362          21,516,122
    Net increase (decrease) in short-term loans                                2,694,447          (2,560,117)
    Principal collected on mortgage backed securities - available for sale     5,685,136           6,548,288
    Purchase of mortgage backed securities - available for sale               (4,985,327)        (16,322,869)
    Proceeds from sale of mortgaged backed securities- available for sale      1,447,365           6,782,470
    Purchase of mortgage backed securities- held to maturity                  (1,095,533)                 --
    Principal collected on mortgage backed securities - held to maturity       1,782,374           4,606,048
    Proceeds from sale of repossessed assets                                      77,388                  --
    Investment in premises and equipment                                         (98,111)           (144,873)
    Purchase of Federal Home Loan Bank of Atlanta stock                               --             266,305
                                                                           -------------       -------------
        Net cash provided (used) by investing activities                       2,903,499         (12,370,826)

Cash Flows from Financing Activities
------------------------------------
Decrease in checks written in excess of bank balance                                  --            (390,799)
Net increase in demand deposits, money market, passbook
      accounts and advances by borrowers for taxes and
      insurance                                                                5,303,275           6,057,205
    Net (decrease) increase in certificates of deposit                        (1,377,710)          5,905,436
    Increase in Federal Home Loan Bank of Atlanta advances                    29,800,000                  --
    Repayment of Federal Home Loan Bank of Atlanta advances                  (29,800,000)                 --
    Exercised Stock Options                                                      111,443                  --
    Increase in Dividends Payable                                                  1,626                  --
    Dividends paid on stock                                                     (256,603)           (264,891)
                                                                           -------------       -------------
        Net cash provided by financing activities                              3,782,031          11,306,951
                                                                           -------------       -------------

Decrease (increase) in cash and cash equivalents                              (3,776,277)          1,015,398
Cash and cash equivalents at beginning of period                              23,208,274          25,703,327
                                                                           -------------       -------------
Cash and cash equivalents at end of period                                 $  19,431,997       $  26,718,725
                                                                           =============       =============
</TABLE>

                                       6
<PAGE>

                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

                CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                -------------------------------------------------


<TABLE>
<CAPTION>

                                                                                       December 31,
                                                                            -------------------------------
                                                                                2003               2002
                                                                            -----------        ------------
<S>                                                                             <C>                <C>
The following is a summary of cash and cash equivalents:
    Cash                                                                   $  12,356,894       $   9,774,030
    Interest bearing deposits in other banks                                   5,846,539          10,948,650
    Federal funds sold                                                         1,328,564           6,096,045
                                                                           -------------       -------------
    Balance of cash items reflected on Statement of
      Financial Condition                                                     19,431,997          26,818,725
        Less - certificate of deposit with an original maturity of
          more than ninety days                                                  100,000             100,000
                                                                           -------------       -------------

Cash and cash equivalents reflected on the
    Statement of Cash Flows                                                $  19,431,997       $  26,718,725
                                                                           =============       =============

Supplemental Disclosures of Cash Flows Information:
    Cash paid during the period for:

    Interest                                                               $   3,932,594       $   4,210,016
                                                                           =============       =============

    Income taxes                                                           $      87,000       $      50,000
                                                                           =============       =============
</TABLE>


The accompanying notes to the consolidated financial statements are an integral
part of these statements.

                                       7
<PAGE>



                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
             ------------------------------------------------------

Note 1 - Principles of Consolidation
         ---------------------------

     BCSB  Bankcorp,  Inc. (the  "Company")  owns 100% of BCSB Bankcorp  Capital
     Trust I, BCSB Bankcorp  Capital Trust II and Baltimore County Savings Bank,
     F.S.B.  and  subsidiaries  (the "Bank") and also  invests in federal  funds
     sold,  interest-bearing  deposits in other banks and U.S. Agency bonds. The
     Bank owns 100% of Baltimore  County Service  Corporation and Ebenezer Road,
     Inc.  The  accompanying   consolidated  financial  statements  include  the
     accounts and transactions of these companies on a consolidated  basis since
     the date of acquisition. All intercompany transactions have been eliminated
     in  the  consolidated  financial  statements.  Ebenezer  Road,  Inc.  sells
     insurance  products.  It's operations are not material to the  consolidated
     financial statements.

Note 2 - Basis for Financial Statement Presentation
         ------------------------------------------

     The accompanying  consolidated  financial  statements have been prepared in
     accordance  with  accounting  principles  generally  accepted in the United
     States of America and the instructions to Form 10-Q.  Accordingly,  they do
     not  include  all of the  disclosures  required  by  accounting  principles
     generally  accepted in the United States of America for complete  financial
     statements.  In the opinion of management,  all adjustments  (none of which
     were  other  than  normal   recurring   accruals)   necessary  for  a  fair
     presentation  of the financial  position and results of operations  for the
     periods  presented  have been  included.  The  financial  statements of the
     Company are presented on a  consolidated  basis with those of the Bank. The
     results for the three  months ended  December 31, 2003 are not  necessarily
     indicative of the results of  operations  that may be expected for the year
     ending September 30, 2004. The consolidated  financial statements should be
     read in conjunction with the consolidated  financial statements and related
     notes which are incorporated by reference in the Company's Annual Report on
     Form 10-K for the year ended September 30, 2003.

Note 3 - Cash Flow Presentation
         ----------------------

     For purposes of the  statements  of cash flows,  cash and cash  equivalents
     include cash and amounts due from depository  institutions,  investments in
     federal funds, and  certificates of deposit with original  maturities of 90
     days or less.




                                       8


<PAGE>

                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland


             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
             ------------------------------------------------------



Note 4 - Earnings Per Share
         ------------------

     Basic per share amounts are based on the weighted  average shares of common
     stock  outstanding.  Diluted  earnings  per share  assume  the  conversion,
     exercise or issuance of all  potential  common  stock  instruments  such as
     options,  unless the effect is to reduce a loss or  increase  earnings  per
     share. No adjustments  were made to net income  (numerator) for all periods
     presented.  The basic and diluted weighted  average shares  outstanding for
     the three months ended December 31, 2003 and 2002 is as follows:
<TABLE>
<CAPTION>

                                                                For the Three Months Ended December 31, 2003
                                                              -----------------------------------------------
                                                                Income            Shares           Per Share
         Basic EPS                                            (Numerator)      (Denominator)         Amount
         ---------                                            -----------      -------------       ---------
          <S>                                                      <C>             <C>                <C>

         Income available to common stockholders              $   188,057        5,778,442       $       0.03

         Effect of dilutive shares                                     --           54,059                 --
                                                              -----------       ----------       ------------

         Diluted EPS
         -----------

         Income available to common stockholders
             plus assumed conversions                         $   188,057        5,832,501       $       0.03
                                                              ===========       ==========       ============


                                                               For the Three Months Ended December 31, 2002
                                                              ---------------------------------------------
                                                                Income             Shares       Per Share
         Basic EPS                                            (Numerator)       (Denominator)     Amount
         ---------                                            -----------       -------------     ------

         Income available to common stockholders              $   452,509        5,718,212       $     0.08


         Effect of dilutive shares                                     --           33,792               --
                                                              -----------       ----------       ----------


         Diluted EPS
         -----------

         Income available to common stockholders
             plus assumed conversions                         $   452,509       $5,752,004       $     0.08
                                                              ===========        =========       ==========
</TABLE>

                                       9
<PAGE>



                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland


             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
             ------------------------------------------------------

Note 5 - Regulatory Capital
         ------------------

     The following table sets forth the Bank's capital  position at December 31,
2003.
<TABLE>
<CAPTION>
                                                                                               To Be Well
                                                                                           Capitalized Under
                                                                    For Capital            Prompt Corrective
                                            Actual               Adequacy Purposes          Action Provision
                                  --------------------------  ------------------------  ------------------------
                                    Actual           % of     Required          % of    Required          % of
                                    Amount           Assets    Amount           Assets   Amount           Assets
                                    ------           ------   --------          ------  --------          ------
                                                                        (unaudited)
<S>                                  <C>              <C>       <C>              <C>      <C>              <C>

Tangible (1)                     $ 52,625,111          8.10%  $ 9,746,463         1.50%         N/A         N/A
Tier 1 capital (2)                 52,625,111         15.45           N/A          N/A   20,431,373        6.00%
Core (1)                           52,625,111          8.10    25,990,567         4.00   32,488,208        5.00
Risk-weighted (2)                  54,709,591         16.07    27,241,830         8.00   34,052,288       10.00
</TABLE>

------------

(1)  To adjusted total assets.
(2)  To risk-weighted assets.

Note 6- Stock Option Plan
        -----------------

               Stock-Based Employee  Compensation- At December 31, 2003 and 2002
          the company has four stock-based  employee  compensation  plans, which
          are  described  more  fully in the 2003  Annual  Report.  The  company
          accounts  for  those  plans  under  the  recognition  and  measurement
          principles  of APB  Opinion  No. 25,  Accounting  for Stock  Issued to
          Employees,  and  related  Interpretations.  No  compensation  cost  is
          reflected in income for the granted options as all granted options had
          an exercise price equal to the market value of the  underlying  common
          stock on the date of grant. The following table illustrates the effect
          on net income and  earnings  per share if the  Company had applied the
          fair  value   recognition   provisions  of  FASB  Statement  No.  123,
          Accounting  for  Stock-Based  Compensation,  to  stock-based  employee
          compensation.

<TABLE>
<CAPTION>

                                                                         For the three months ended December 31,
                                                                               2003              2002
                                                                               ----              ----
                        <S>                                                     <C>              <C>
                  Net Income, as reported                                   $ 188,057         $ 452,509
                  Add: Stock-based Compenstation
                       Included in the determination of
                       Net income as reported, net of tax                      62,023            53,670
                  Deduct: Total stock-based compensation
                             Expense determined under fair value
                              Method for all awards, net of tax               (75,221)          (58,642)
                                                                              -------           -------
                       Pro forma net income                                 $ 174,859         $ 447,537
                                                                              =======           =======
                       Earnings per share:

                       Basic-as reported                                        $ .03             $ .08
                                                                                  ===               ===
                       Basic-pro forma                                            .03               .08
                                                                                  ===               ===
                       Diluted-as reported                                        .03               .08
                                                                                  ===               ===
                       Diluted-proforma                                           .03               .08
                                                                                  ===               ===
</TABLE>

                                       10

<PAGE>

Note7- Recent Accounting Pronouncements
       --------------------------------

               In January 2003, the Financial  Accounting Standards Board (FASB)
          issued FASB Interpretation No 46,  "Consolidation of Variable Interest
          Entities,  an  Interpretation  of ARB No.  51." FIN 46 was  revised in
          December  2003.  This  interpretation  provides  new  guidance for the
          consolidation  of variable  interest  entities (VIE) and requires such
          entities to be  consolidated  by their  primary  beneficiaries  if the
          entities do not effectively  disperse risk among the parties involved.
          The  interpretation  also adds disclosure  requirements  for investors
          that  are  involved  with  unconsolidated  VIEs.  FIN 46 will  require
          deconsolidation of BCSB Capital Trust I and BCSB Capital Trust II. The
          deconsolidation  will  not have a  material  effect  on the  Company's
          financial  position,  results  of  operation.  or the  bank's  capital
          position.  FIN 46 will be effective,  for periods starting after March
          15, 2004.


ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

GENERAL

     The  Company  was formed by the Bank to become the  holding  company of the
Bank following the Bank's  reorganization  to the mutual holding company form of
organization (the "Reorganization").  The Reorganization was consummated on July
8, 1998.

     The Company's net income is dependent primarily on its net interest income,
which is the difference  between interest income earned on its loan,  investment
securities  and  mortgage-backed  securities  portfolio  and  interest  paid  on
interest-bearing  liabilities.  Net  interest  income is  determined  by (i) the
difference  between yields earned on  interest-earning  assets and rates paid on
interest-bearing  liabilities  ("interest  rate  spread")  and (ii) the relative
amounts  of  interest-earning  assets  and  interest-bearing   liabilities.  The
Company's  interest  rate  spread  is  affected  by  regulatory,   economic  and
competitive  factors  that  influence  interest  rates,  loan demand and deposit
flows.  To a lesser  extent,  the  Company's  net income also is affected by the
level of other income,  which primarily consists of fees and charges, and levels
of non-interest expenses such as salaries and related expenses.

     The  operations  of the Company are  significantly  affected by  prevailing
economic  conditions,  competition  and  the  monetary,  fiscal  and  regulatory
policies of  governmental  agencies.  Lending  activities  are influenced by the
demand  for and  supply of  housing,  competition  among  lenders,  the level of
interest rates and the  availability of funds.  Deposit flows and costs of funds
are  influenced by prevailing  market rates of interest,  primarily on competing
investments, account maturities and the levels of personal income and savings in
the Company's market area.

CRITICAL ACCOUNTING POLICIES

     The Company's  significant  accounting  policies are set forth in Note 1 of
the consolidated  financial  statements as of September 30, 2003 which was filed
on Form 10-K. Of these significant  accounting  policies,  the Company considers
its policy  regarding  the  allowance  for loan  losses to be its most  critical
accounting policy,  because it requires management's most subjective and complex
judgments.  In addition,  changes in economic  conditions can have a significant
impact on the  allowance  for loan losses and  therefore  the provision for loan
losses and results of operations. The Company has developed appropriate policies
and  procedures  for  assessing  the adequacy of the  allowance for loan losses,
recognizing  that this process  requires a number of  assumptions  and estimates
with respect to its loan portfolio. The Company's assessments may be impacted in
future  periods by  changes in  economic  conditions,  the impact of  regulatory
examinations, and the discovery of information with respect to borrowers that is
not  known  to  management  at the  time  of the  issuance  of the  consolidated
financial statements.  The Company adopted the disclosure only provision of FASB
123 see note 6 to the consolidated  financial statements.  They do not expect to
expense the fair market  value of stock  options  until  required by  accounting
principles generally accepted in the United States of America.

FORWARD-LOOKING STATEMENTS

     When used in this Form 10-Q,  the words or phrases  "will  likely  result,"
"are expected to," "will continue," "is anticipated,"  "estimate,"  "project" or
similar expressions are intended to identify "forward-looking statements" within
the  meaning of the  Private  Securities  Litigation  Reform  Act of 1995.  Such
statements are subject to certain risks and  uncertainties  including changes in
economic  conditions  in the  Company's  market  area,  changes in  policies  by
regulatory

                                       11
<PAGE>

agencies,  fluctuations  in interest  rates,  demand for loans in the  Company's
market  area,  and  competition  that  could  cause  actual  results  to  differ
materially  from  historical   earnings  and  those  presently   anticipated  or
projected.  The Company wishes to caution readers not to place undue reliance on
any such forward-looking  statements,  which speak only as of the date made. The
Company  wishes to advise readers that the factors listed above could affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ  materially  from any opinions or statements  expressed
with respect to future periods in any current statements.

     The Company does not undertake,  and specifically disclaims any obligation,
to  publicly  release  the  result  of any  revisions  which  may be made to any
forward-looking  statements to reflect events or circumstances after the date of
such  statements or to reflect the occurrence of  anticipated  or  unanticipated
events.

COMPARISON OF FINANCIAL CONDITION AT DECEMBER 31, 2003 AND SEPTEMBER 30, 2003

     During the three months  ended  December 31,  2003,  the  Company's  assets
decreased by $7.9 million,  or 1.2% from $668.2 million at September 30, 2003 to
$660.3  million at December 31, 2003.  Loans  receivable,  net decreased by $5.7
million, or 1.6%, from $365.0 million at September 30, 2003 to $359.3 million at
December 31, 2003. The Company's  mortgage-backed  securities available for sale
decreased by $2.6 million, or 2.2%, from $116.2 million at September 30, 2003 to
$113.6  million at December 31, 2003. The Company's  mortgage-backed  securities
held to maturity  decreased by $700,000 or 3.8% from $18.4  million at September
30,  2003 to $17.7  million at  December  31,  2003.  The  Company's  investment
portfolio available for sale decreased $6.9 million or 5.7%, from $121.3 million
at September  30, 2003 to $114.4  million at December 31,  2003.  The  Company's
investment  portfolio held to maturity  increased by $500,000 or 20.0% from $2.5
million at September  30, 2003 to $3.0 million at December 31, 2003.  During the
three months ended December 31, 2003 the Company purchased $11.5 million of bank
owned life  insurance.  The preceeding was  accomplished  in an effort to reduce
interest  rate risk in the balance  sheet.  The bank was  reluctant to make long
term low rate loans in the low interest rate  environment  that prevailed during
the three month  period ended  December  31,  2003.  Emphasis has been placed on
short term loans such as  automobile  loans,  home  equity  loans and short term
mortgages. The Company's deposits increased by $3.8 million, or .7%, from $551.9
million at  September  30, 2003 to $555.7  million at  December  31,  2003.  The
increase in deposits was achieved through normal marketing efforts.

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2003 AND
2002

     Net Income.  Net income decreased by $264,000,  or 58.4%, from $452,000 for
the three months ended  December 31, 2002 to $188,000 for the three months ended
December 31,  2003.  The decrease in net income was  primarily  attributable  to
decreased  net  interest  income of  $347,000.  This was  partially  offset by a
decrease in the  provision  for loan losses and income  taxes and an increase in
other income due to the Bank Owned Life Insurance.

     Net Interest  Income.  Net  interest  income was $3.9 million for the three
months ended  December  31, 2003,  compared to $4.5 million for the three months
ended  December 31, 2002,  representing  a decrease of $629,000,  or 14.0%.  The
decrease  was  primarily  due to the  decrease in the  average  rate on interest
earning-assets.  The average  rate on  interest-earning  assets  decreased by 88
basis points from,  6.15% for the three months ended  December 31, 2002 to 5.27%
for the three months ended  December 31, 2003.  Due to declining  interest rates
and loans re-pricing  faster than deposits the interest rate spread decreased 37
basis points from,  3.07% for the three months ended  December 31, 2003 to 2.70%
for the three months ended December 31, 2003.

     Interest Income.  Interest income decreased by $872,000, or 10.0% from $8.7
million for the three  months  ended  December  31, 2002 to $7.8 million for the
three months ended  December 31, 2003.  Interest and fees on loans  decreased by
$1.4 million,  or 19.3%,  from $7.0 million for the three months ended  December
31, 2002 to $5.6 million for the three months ended December 31, 2003.  This was
primarily  due to a decrease  in the average  yield on loans of 90 basis  points
from 7.15% for the three months  ended  December 31, 2002 to 6.25% for the three
months  ended  December 31, 2003,  and a $30.2  million  decrease in the average
balance of loans  receivable  from $391.8 million at December 31, 2002 to $361.6
million at December 31, 2003.  The decrease in the average  balance of loans was
primarily  attributable  to increased  competition  in the  refinancing  market,
current economic  conditions and the  management's  reluctance to make long term
low rate loans in the low interest rate  environment  that prevailed  during the
period.  The  decrease in the average  yield was  attributed  to the  prevailing
market rates in the economy. Interest on mortgage-backed securities increased by
$144,000

                                       12
<PAGE>

or 13.7% from $1.1 million for the three months ended  December 31, 2002 to $1.2
million  for the three  months  ended  December  31,  2003.  This  increase  was
primarily  due to  the  increase  in  the  average  balance  of  mortgage-backed
securities from $92.8 million at December 31, 2002 to $108.1 million at December
31, 2003. Interest and dividends on investment  securities increased by $416,000
or 78.9% from $527,000  million for the three months ended  December 31, 2002 to
$943,000  million  for the  three  months  ended  December  31,  2003.  This was
primarily  due to an  increase in the average  balance of  investments  of $63.5
million  from,.$56.0  million at December 31, 2002 to $119.6 million at December
31, 2003. The increase in the average  balance more than offset a decrease of 61
basis  points in the average  yield on  investments  from,  3.76 % for the three
months ended  December 31, 2002 to 3.15% for the three months ended December 31,
2003.

     Interest Expense. Interest expense, which consists of interest on deposits,
interest  on  borrowed  money and other  interest  expense  decreased  from $4.1
million for the three  months  ended  December  31, 2002 to $3.9 million for the
three months ended  December 31, 2003 a change of $243,000 or 5.8%.  Interest on
deposits  decreased  $305,000 due to a decrease in the average yield on deposits
of 49 basis  points  from 2.92% at December  31,  2002 to 2.43% at December  31,
2003. This was partially offset by an increase in the average volume of deposits
of $50.9 million from $504.2  million at December 31, 2002 to $555.2  million at
December 31, 2003. The Company was able to increase its deposits  through normal
marketing efforts.  Interest on short-term  borrowings  decreased by $13,000 for
the three months ended December 31, 2003,  and interest on long-term  borrowings
decreased by $14,000 for the three months ended December 31, 2003. This decrease
was primarily due to a decrease of 161 basis points in the average yield paid on
advances  from the  Federal  Home Loan Bank of Atlanta  during the three  months
ended December 31, 2003. Also  contributing to interest  expense was interest on
the Trust  Preferred  Securities  which was  $268,000 for the three month period
ending December 31,2003,  compared to $179,000 for the three month period ending
December 31, 2002.

                                       13
<PAGE>

     Average Balance Sheet.  The following table sets forth certain  information
relating to the Company's  average  balance sheet and reflects the average yield
on assets and cost of  liabilities  for the  periods  indicated  and the average
yields  earned and rates  paid.  Such  yields and costs are  derived by dividing
income or  expense  by the  average  daily  balance  of  assets or  liabilities,
respectively,  for the three month  periods  ended  December  31, 2003 and 2002.
Total average assets are computed using month-end balances.

     The table also presents  information for the periods indicated with respect
to the differences between the average yield earned on  interest-earning  assets
and  average  rate  paid on  interest-bearing  liabilities,  or  "interest  rate
spread," which banks have  traditionally  used as an indicator of profitability.
Another  indicator of net interest income is "net interest margin," which is its
net interest income divided by the average balance of interest-earning assets.
<TABLE>
<CAPTION>

                                                                      Three Months Ended December 31
                                               ---------------------------------------------------------------------------
                                                              2003                                     2002
                                               -----------------------------------     -----------------------------------
                                               Average                   Average       Average                     Average
                                               Balance      Interest      Rate         Balance       Interest       Rate
                                               -------      --------     -------       -------       --------      -------
        <S>                                     <C>           <C>          <C>          <C>            <C>           <C>
                                                                           (Dollars in thousands)
Interest-earning assets:
   Loans....................................   $ 361,599    $   5,653        6.25%     $  391,822   $   7,008         7.15%
   Mortgage-backed securities...............     108,150        1,200        4.44          92,795       1,056         4.55
   Dividends and investment securities......     119,575          943        3.15          56,096         527         3.76
   Other Investments........................       3,800           14        1.47          24,336          91         1.50
                                               ---------    ---------                  ----------    --------
       Total interest-earning assets........     593,124        7,810        5.27         565,049       8,682         6.15
Noninterest-earning assets..................      68,784                                   30,496
                                               ---------                               ----------
       Total assets.........................   $ 661,908                               $  595,545
                                               =========                               ==========

Interest-bearing liabilities:
   Deposits.................................   $ 555,192        3,371        2.43         504,238       3,676         2.92
   FHLB Advances............................      34,258          304        3.55          25,760         332         5.16
   Trust Preferred Securities...............      22,500          268        4.76          12,500         178         5.70
   Other liabilities........................       1,094            1        0.37           1,435           1         0.28
                                               ---------    ---------                  ----------    --------
Total interest-bearing liabilities..........     613,044        3,944        2.57         543,933       4,187         3.08
                                                            ---------    --------                    --------      -------
Noninterest-bearing liabilities.............       4,752                                    5,125
                                               ---------                               ----------
       Total liabilities....................     617,796                                  549,058
Stockholders' equity .......................      44,112                                   46,487
                                               ---------                               ----------
       Total liabilities and stockholders'
            equity..........................   $ 661,908                               $  595,545
                                               =========                               ==========

Net interest income.........................                $   3,866                                $  4,495
                                                            =========                                ========
Interest rate spread........................                                 2.70%                                    3.07%
                                                                          =======                                     ====
Net interest margin.........................                                 2.61%                                    3.18%
                                                                          =======                                     ====
Ratio average interest earning assets/
    interest bearing liabilities............                                96.75%                                  103.88%
                                                                            =====                                   ======
</TABLE>


                                       14
<PAGE>

     Rate/Volume  Analysis.  The table  below  sets  forth  certain  information
regarding  changes in interest  income and interest  expense of the Bank for the
periods   indicated.   For  each   category   of   interest-earning   asset  and
interest-bearing liability,  information is provided on changes attributable to:
(i) changes in volume (changes in volume  multiplied by old rate);  (ii) changes
in rates  (change  in rate  multiplied  by old  volume);  and (iii)  changes  in
rate/volume (changes in rate multiplied by the changes in volume).

<TABLE>
<CAPTION>
                                                        For Three Months Ended December 31,
                                                ---------------------------------------------------
                                                        2003             vs.                 2002
                                                ---------------------------------------------------
                                                              Increase (Decrease)
                                                                     Due to
                                                ---------------------------------------------------
                                                                                 Rate/
                                                 Volume         Rate            Volume        Total
                                                --------       ------           ------        -----
   <S>                                            <C>            <C>              <C>          <C>
                                                                   (In thousands)
Interest income:
  Loans receivable..........................   $   (537)      $   (888)      $     70    $ (1,355)
  Mortgage-backed securities................        177            (28)            (5)        144
  Investment securities and
      FHLB Stock............................        593            (82)           (95)        416
  Other interest-earning assets.............        (77)             0              0         (77)
                                               --------       --------       --------    --------
    Total interest-earning assets...........        156           (998)           (30)       (872)

Interest expense:
  Deposits..................................        371           (614)           (62)       (305)
  FHLB advances.............................        109           (103)           (34)        (28)
  Trust Preferred Securities................        142            (29)           (23)         90
  Other liabilities.........................          0              0              0           0
                                               --------       --------       --------    --------
     Total interest-bearing
       liabilities..........................        622           (746)          (119)       (243)
                                               --------       ---------      ---------   ---------

Change in net interest income...............   $   (466)      $   (252)      $     89    $   (629)
                                               ========       ========       ========    ========
</TABLE>


     Provision for Loan Losses.  The Company charges  provisions for loan losses
to  earnings  to  maintain  the  total  allowance  for  loan  losses  at a level
management  considers  adequate to provide for probable  future loan losses.  In
determining  the  provision,  management  considers a number of factors  such as
existing loan levels, prior loss experience, current economic conditions and the
probability of these conditions  affecting future loan performance.  The Company
established  provisions  for losses on loans of  $182,000  for the three  months
ended  December  31,  2003,  as compared to $282,000  for the three months ended
December 31, 2002,  representing a decrease of $100,000. Loan chargeoffs for the
three months ended  December 31, 2003 were  $329,000 as compared to $243,000 for
the three months ended December 31, 2002 an increase of $86,000. Loan chargeoffs
increased due to adverse economic  conditions.  Loan recoveries were $26,000 for
the three  months  ended  December  31, 2003  compared to $195,000 for the three
months ended December 31, 2002.  Non performing  loans at December 31, 2003 were
$430,000 as compared to $759,000 at December 31, 2002.  The total loss allowance
allocated to domestic loans is $2.6 million.  In establishing  such  provisions,
management  considered an analysis of the risk  inherent in the loan  portfolio.
For additional information see Asset Quality.

     Other Income.  Other income  increased by $100,000,  or 23.5% from $426,000
for the three  months  ended  December 31, 2002 to $526,000 for the three months
ended December 31, 2003. The increase in other income for the three months ended
December 31 2003 was primarily attributable to an increase in the cash surrender
value of bank  owned life  insurance  of  $122,000  for the three  months  ended
December 31, 2003,  compared to $0 for the three months ended December 31, 2002.
There was also a gain on the sale of repossessed assets of $77,000 for the three
months  ended  December  31,  2003  compared to $0, for the three  months  ended
December 31, 2002.  Fees on  transaction  accounts also  increased  $82,000 from
$129,000 for the three months ended  December 31, 2002 to $211,000 for the three
months ended December 31, 2003.  Fees on transaction  accounts  increased due to
the increase in the volume of transaction  accounts.  These gains were partially
offset by a decrease in the gain on sale of loans of

                                       15
<PAGE>

$43,000,  from $67,000 for the three  months ended  December 31, 2002 to $24,000
for the three months ended  December 31, 2003.  There was also a decrease in the
gain on the sale of  investments  of $38,000 for the three months ended December
31,  2003,  from a gain on  investments  of $25,000 for the three  months  ended
December 31, 2002 to a loss of $13,000 for the three  months ended  December 31,
2003. Gain on the sale of mortgage backed  securities also decreased $62,000 for
the three months ended December 31, 2003 from $70,000 for the three months ended
December 31, 2002 to $8,000 for the three months ended December 31, 2003.  These
securities were sold in an effort to mitigate interest rate risk.

     Non-interest  Expenses.  Total  non-interest  expenses remained  relatively
stable at $3.9 million for the three  months  ended  December 31, 2003 and 2002.
The Company  experienced  increases of $38,000 in salaries and related  expenses
for the three  months ended  December 31, 2003,  from $2.1 million for the three
months  ended  December  31,  2002 to $2.2  million for the three  months  ended
December 31, 2003.  Occupancy  expense also increased by $92,000,  from $395,000
for the three  months  ended  December 31, 2002 to $487,000 for the three months
ended December 31, 2003.  These increases were partially offset by a decrease in
data  processing  expense of $25,000,  from  $412,000 for the three months ended
December  31, 2002 to $386,000  for the three  months  ended  December 31, 2003.
Other expenses also decreased by $87,000 for the three months ended December 31,
2003,  from $163,000 for the three months ended December 31, 2002 to $76,000 for
the three months ended December 31, 2003.

     Income Taxes. The Company's income tax expense was $92,000 and $279,000 for
the three months ended December 31, 2003 and 2002,  respectively.  The Company's
effective tax rates were 32.7% and 38.2% for the three months ended December 31,
2003 and 2002, respectively.

                                       16
<PAGE>



COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET RISK

     The Company is a party to financial instruments with off-balance sheet risk
including  commitments  to extend  credit  under  existing  lines of credit  and
commitments  to sell  loans.  These  instruments  involve,  to varying  degrees,
elements of credit and interest rate risk in excess of the amount  recognized in
the consolidated balance sheets.

     Off-balance  sheet financial  instruments  whose contract amounts represent
credit and interest rate risk are summarized as follows:

<TABLE>
<CAPTION>
                                                                      December 31, 2003      September 30, 2003
                                                                     -------------------    --------------------
            <S>                                                            <C>                     <C>
                                                                                 (dollars in thousands)

         Commitments to originate new loans                           $      5,512               $  10,600
         Commitments to originate new loans held for sale                       --                      --
         Unfunded commitments to extend credit under existing
          equity line and commercial lines of credit                        23,991                  20,400
         Commercial letters of credit                                          419                     419
         Commitments to sell loans held for sale                                --                      --
</TABLE>

The Company does not have any  unconsolidated  special purpose entities or other
similar forms of off-balance sheet financing arrangements.

     Commitments  to originate new loans or to extend  credit are  agreements to
lend to a customer as long as there is no violation of any condition established
in the contract.  Loan  commitments  generally expire within 30 to 45 days. Most
equity line  commitments for the unfunded portion of equity lines are for a term
of 20 years, and commercial lines of credit are generally renewable on an annual
basis.  Commitments  generally have fixed expiration dates or other  termination
clauses  and may require  payment of a fee.  Since many of the  commitments  are
expected to expire without being drawn upon, the total commitment amounts do not
necessarily  represent  future cash  requirements.  The Company  evaluates  each
customer's  creditworthiness  on a case-by-case basis. The amounts of collateral
obtained,  if deemed necessary by the Company upon extension of credit, is based
on management's credit evaluation of the borrower.

     Commitments  to sell loans held for sale are  agreements to sell loans to a
third party at an agreed upon price.

CONTRACTUAL OBLIGATIONS

As of December 31, 2003
<TABLE>
<CAPTION>

                                                                  Payments due by period
                                                                  ----------------------
                                                                  (Dollars in thousands)
                                        Less than
                                         1 year                 1-3 years         4-5 years        Over 5 years       Total
                                    -----------------           ---------         ---------        ------------       -----
<S>                                          <C>                   <C>              <C>                 <C>            <C>

Time Deposits                        $      192,909              99,986              80,924               --         373,819
Long-term borrowings                         12,250               1,000               9,000            9,000          31,250
Trust Preferred Securities                       --                  --                  --           22,500          22,500
Lease obligations                               907               2,847               1,347            5,422          10,523
                                     --------------             -------             -------          -------        --------

Total contractual cash
    obligations                      $      206,066             103,833              91,271           36,922         438,092
                                     ==============             =======             =======          =======        ========

</TABLE>


                                       17
<PAGE>


ASSET QUALITY

     At  December  31,  2003,   the  Company  had   approximately   $561,000  in
non-performing assets (nonaccrual loans,  repossessed assets and foreclosed real
estate ) or .08% of total assets. At September 30, 2003,  non-performing  assets
were $593 000 or .04% of total assets.  The Bank's net charge-offs for the three
months ended  December 31, 2003 were  $303,000.  The Bank's  allowance  for loan
losses was $2.6 million at December  31, 2003 and $2.7 million at September  30,
2003.


     The following  table  presents an analysis of the Company's  non-performing
assets:
<TABLE>
<CAPTION>

                                                           At                      At
                                                      December 31,            September 30,
                                                          2003                    2003
                                                          ----                    ----
<S>                                                      <C>                      <C>
Nonperforming loans:
Nonaccrual loans                                    $      430                $       300
Loans 90 days past due and accruing                         --                         --
Restructured loans                                          --                         --
                                                    ----------                -----------
Total nonperforming loans                                  430                        300
Other non-performing assets                                131                        283
                                                    ----------                -----------
Total nonperforming assets                          $      561                $       593
                                                    ==========                ===========

Nonperforming loans to loans receivable, net               .12%                       .08%
Nonperforming assets as a percentage
 of loans and other real estate owned                      .16%                       .08%
Nonperforming assets to total assets                       .08%                       .04%
</TABLE>



                                       18

<PAGE>

The  following  table sets forth an  analysis of the Bank's  allowance  for loan
losses for the periods indicated.
<TABLE>
<CAPTION>

                                                           For the Three Months Ended
                                                                   December 31,

                                                               2003          2002
                                                           ------------   ----------
<S>                                                             <C>        <C>
Balance at beginning of period...................          $      2,698   $     2,199
                                                           ------------   -----------

Loans charged-off:
  Real estate mortgage:
    Single-family residential....................                    --            --
    Multi-family residential.....................                    --            --
    Commercial...................................                    --            --
   Construction..................................                    --            --
  Commercial loans...............................                    --            --
  Consumer.......................................                   329           243
                                                           ------------   -----------
Total charge-offs................................                   329           243

Recoveries:
  Real estate mortgage:
    Single-family residential....................                   --             --
Multi-family residential.........................                   --             --
    Commercial...................................                   --             --
    Construction.................................                   --             --
Commercial loans secured.........................                   --             --
  Consumer.......................................                   26            103
                                                           -----------    -----------
Total recoveries.................................                   26            103
Net loans charged off............................                 (303)          (140)
Provision for loan  losses.......................                  182            282
                                                           -----------    -----------
Balance at end of period.........................           $    2,577    $     2,342
                                                           ===========    ===========

Ratio of net charge-offs to average
  loans outstanding during the period............                 .08%           .04%
                                                           ==========     ==========
</TABLE>


     Regulations  require  that the  Company  classify  its  assets on a regular
basis. There are three classifications for problem assets: substandard, doubtful
and loss.  The Company  regularly  reviews its assets to  determine  whether any
assets require  classification or  re-classification.  At December 31, 2003, the
Company had $561,000 in classified assets, consisting of $430,000 in substandard
and loss loans, $0 in foreclosed real estate and $ 131,000 in other  repossessed
assets.  At September 30, 2003, the Company had $583,000 in substandard  assets,
consisting of $300,000 in loans,  $0 in  foreclosed  real estate and $283,000 in
other repossessed assets.

     In addition to regulatory  classifications,  the Company also classifies as
"special mention" assets that are currently  performing in accordance with their
contractual  terms but may become  classified  or  non-performing  assets in the
future.  At December 31, 2003,  the Company has  identified  approximately  $2.8
million in assets classified as special mention.


LIQUIDITY AND CAPITAL RESOURCES

     At December 31, 2003,  the Bank  exceeded all  regulatory  minimum  capital
requirements. For information comparing the Bank's tangible, core and risk-based
capital  levels  to  the  regulatory  requirements,  see  Note  5  of  Notes  to
Consolidated Financial Statements.

     The  Company's  primary  sources of funds are deposits  and  proceeds  from
maturing investment securities and mortgage-backed  securities and principal and
interest  payments on loans.  While  maturities  and scheduled  amortization

                                       19
<PAGE>

of  mortgage-backed  securities  and  loans are a  predictable  source of funds,
deposit  flows and  mortgage  prepayments  are  greatly  influenced  by  general
interest rates, economic conditions, competition and other factors.

     The primary  investing  activities  of the Company are the  origination  of
loans and the purchase of investment securities and mortgage-backed  securities.
During the three months ended  December 31, 2003 and 2002, the Company had $15.4
million and $16.5 million, respectively, of loan originations.  During the three
months  ended  December  31,  2003 and 2002,  the Company  purchased  investment
securities in the amounts of $5.0 million and $24.1 million,  respectively,  and
mortgage-backed  securities  in the amounts of $6.1  million and $16.3  million,
respectively. The primary financing activity of the Company is the attraction of
savings deposits.

     The Company has other  sources of  liquidity  if there is a need for funds.
The Bank has the  ability  to  obtain  advances  from  the FHLB of  Atlanta.  In
addition, the Company maintains a portion of its investments in interest-bearing
deposits at other financial institutions that will be available, if needed.

     The Bank is required to maintain minimum levels of liquid assets as defined
by OTS regulations.  This requirement,  which may be changed at the direction of
the OTS depending upon economic  conditions  and deposit flows,  is based upon a
percentage  of deposits and  short-term  borrowings.  The Bank's  average  daily
liquidity  ratio  for the  month of  December  was  approximately  44.9%,  which
exceeded the  required  level for such  period.  Management  seeks to maintain a
relatively  high level of liquidity in order to retain  flexibility  in terms of
investment  opportunities  and deposit pricing.  Because liquid assets generally
provide for lower rates of return, the Bank's relatively high liquidity will, to
a certain extent, result in lower rates of return on assets.

     The  Company's  most liquid assets are cash,  interest-bearing  deposits in
other  banks and  federal  funds  sold,  which  are  short-term,  highly  liquid
investments with original  maturities of less than three months that are readily
convertible  to known amounts of cash.  The levels of these assets are dependent
on the Company's operating,  financing and investing activities during any given
period. At December 31, 2003, cash, interest-bearing deposits in other banks and
federal  funds  sold  were  $12.4  million,   $5.8.million   and  $1.3  million,
respectively.

     The Company  anticipates  that it will have  sufficient  funds available to
meet its current  commitments.  Certificates  of deposit  which are scheduled to
mature in less than one year at December 31, 2003 totaled $193.0 million.  Based
on past  experience,  management  believes  that a  significant  portion of such
deposits will remain with the Bank. The Bank is a party to financial instruments
with  off-balance-sheet  risk made in the normal  course of business to meet the
financing  needs of its  customers.  These  financial  instruments  are  standby
letters of credit,  lines of credit and  commitments  to fund mortgage loans and
involve  to  varying  degrees  elements  of credit  risk in excess of the amount
recognized in the statement of financial position. The contract amounts of those
instruments  express the extent of involvement  the Company has in this class of
financial  instruments and represents the Company's exposure to credit loss from
nonperformance by the other party.

     The Company  generally  requires  collateral  or other  security to support
financial instruments with off-balance-sheet  credit risk. At December 31, 2003,
the Company had commitments  under standby letters of credit and lines of credit
and commitments to originate mortgage loans of $419,000,  $23.9 million and $5.5
million respectively.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Market  risk is the  possible  chance of loss from  unfavorable  changes in
market prices and rates.  These changes may result in a reduction of current and
future period net interest income, which is the favorable spread earned from the
excess of interest income on  interest-earning  assets over interest  expense on
interest-bearing liabilities.

     The Company considers  interest rate risk to be its most significant market
risk, which could  potentially  have the greatest impact on operating  earnings.
The  structure  of the  Company's  loan and  deposit  portfolios  is such that a
significant  change in interest rates may adversely impact net market values and
net interest income.

     The Company  monitors whether material changes in market risk have occurred
since September 30, 2003. The Company does not believe that any material adverse
changes in market risk exposures occurred since September 30, 2003.


                                       20


<PAGE>

ITEM 4.    CONTROLS AND PROCEDURES

     As of the end of the  period  covered  by this  report,  management  of the
Company  carried  out  an  evaluation,   under  the  supervision  and  with  the
participation  of  the  Company's  principal  executive  officer  and  principal
financial officer, of the effectiveness of the Company's disclosure controls and
procedures.  Based on this evaluation, the Company's principal executive officer
and principal financial officer concluded that the Company's disclosure controls
and  procedures  are  effective  in  ensuring  that  information  required to be
disclosed  by the  Company  in  reports  that it  files  or  submits  under  the
Securities Exchange Act of 1934, as amended, is recorded, processed,  summarized
and reported,  within the time periods  specified in the Securities and Exchange
Commission's  rules  and  forms.  It  should  be noted  that the  design  of the
Company's  disclosure  controls  and  procedures  is based in part upon  certain
reasonable  assumptions about the likelihood of future events,  and there can be
no reasonable  assurance  that any design of disclosure  controls and procedures
will  succeed  in  achieving  its  stated  goals  under  all  potential   future
conditions,  regardless of how remote, but the Company's principal executive and
financial  officers have  concluded that the Company's  disclosure  controls and
procedures are, in fact, effective at a reasonable assurance level.

     In addition,  there have been no changes in the Company's  internal control
over financial  reporting (to the extent that elements of internal  control over
financial  reporting are subsumed  within  disclosure  controls and  procedures)
identified in connection  with the evaluation  described in the above  paragraph
that occurred  during the Company's  last fiscal  quarter,  that has  materially
affected,  or is reasonably likely to materially  affect, the Company's internal
control over financial reporting.







                                       21
<PAGE>

PART II.  OTHER INFORMATION

         ITEM 1.  LEGAL PROCEEDINGS

         None.

         ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         None.

         ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.

         ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS

         None.


         ITEM 5.  OTHER INFORMATION

         None.

         ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)      List of Exhibits

        The following exhibit is filed herewith:

        Exhibit
        Number                                       Title
        -------                                      -----

        31.1     Rule 13a-14(a) Certification of Chief Executive Officer

        31.2     Rule 13a-14(a) Certification of Chief Financial Officer

        32       Certification  Pursuant to 18 U.S.C.  Section 1350, as Adopted
                 Pursuant to Section 906 of the  Sarbanes-Oxley  Act of 2002.

     The  following  current  reports on Form 8K were filed  during the  quarter
ended December 31, 2003:

        (b)  Form 8-K

             On December 19, 2003 the Company  filed a Current  Report on Form
             8-K reporting under Item 7 and Item 12.

             On October 3, 2003 the Company filed a Current Report on Form 8-K
             reporting under Item 5.

                                       22
<PAGE>

                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                        BCSB BANKCORP, INC.




Date:  February 11, 2004                /s/ Gary C. Loraditch
                                        -------------------------------------
                                        Gary C. Loraditch
                                        President
                                        (Principal Executive Officer)



Date:  February 11, 2004                /s/ Bonnie M. Klein
                                        -------------------------------------
                                        Bonnie M. Klein
                                        Vice President and Treasurer
                                        (Principal Financial and Accounting
                                        Officer)