CMS Bancorp, Inc. Announces Strong Financial Results for the Three Months and Nine Months Ended June 30, 2013
13 August 2013 - 6:35AM
CMS Bancorp, Inc. (Nasdaq:CMSB) (the "Company"), the parent of CMS
Bank (the "Bank"), announced net income available to common
shareholders of $491,000 or $0.28 per share, for the three months
ended June 30, 2013, compared to a net loss of $150,000, or $0.09
per share, for the three months ended June 30, 2012. For the nine
months ended June 30, 2013 net income available to common
shareholders was $792,000 or $0.46 per share, compared to a net
loss of $390,000, or $0.23 per share, for the nine months ended
June 30, 2012.
Commenting on these positive results, President and Chief
Executive Officer John Ritacco stated that "the earnings
improvement was due to the continued growth and diversification in
the loan portfolio, lower interest costs, lower provisions for loan
losses and cost containment measures undertaken by the Bank's
management." In addition, the Company's results were favorably
impacted by a $300,000 reimbursement from Customers Bancorp. Inc
("Customers") for prior period merger related expenses, which was
paid by Customers in the three month period ended June 30, 2013
pursuant to the terms of an Amendment to the Agreement and Plan of
Merger dated August 10, 2012, by and between the Company and
Customers (the "Amendment"). A discussion regarding additional key
terms agreed to by the parties under the Amendment is available in
the Company's Current Report on Form 8-K filed with the U.S.
Securities and Exchange Commission on April 24, 2013, available at
www.sec.gov.
Mr. Ritacco reported that "from September 30, 2012 to June 30,
2013, the Company continued to experience moderate growth and
diversity in its loan portfolio mix, especially in the areas of in
the multi-family, non-residential and commercial sectors. During
this period, the loan portfolio grew by 4.0% from $201.5 million at
September 30, 2012 to $209.5 million at June 30, 2013, an increase
of $8.0 million. Equally as important, during the nine month
period, impaired loans declined from $11.4 million to $7.8 million,
substandard loans declined from $8.8 million to $4.2 million and
non-accrual loans declined from $6.2 million to $3.9 million as of
September 30, 2012 and June 30, 2013, respectively."
Commenting on the other financial statement components, Mr.
Ritacco reported that "we were able to increase our net interest
income by maximizing the yield on interest earning assets, to the
extent possible, and minimizing the cost of our interest bearing
liabilities through the consistent oversight of our liquidity and
cash flow position. Improving economic trends, although generally
still slow, have enabled the Bank to moderate its provisions for
loan losses and our non-interest expense has been held in check by
the Company's non-interest expense cost containment programs."
Mr. Ritacco commented that "the Bank continues to maintain a
strong liquidity position and has added to a strong capital
position through earnings and the Preferred Stock investment made
by Customers Bank."
Forward-Looking Statements
This press release may include forward-looking statements based
on current management expectations. Readers should not place undue
reliance on any such forward-looking statements contained in this
press release, which speak only as of the date made. There can
be no assurance that we will grow as anticipated, will have
consistent future earnings, our interest expense for the remainder
of the fiscal year will be reduced or that the Bank's interest
margin will improve. Factors that could cause actual results
to differ from those expressed or implied by such forward-looking
statements include, but are not limited to: (i) changes in
general economic conditions, including interest rates; (ii) changes
in conditions in the real estate market or the local economy;
(iii) competition among providers of financial services;
(iv) changes in the quality or composition of loan and
investment portfolios of the Bank; (v) changes in accounting and
regulatory guidance applicable to banks; and (vi) price levels
and conditions in the public securities markets
generally. Additional factors that could cause actual results
to differ from those expressed or implied in the forward looking
statements are described in the cautionary language included under
the headings "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the
Company's Annual Report on Form 10-K for the fiscal year ended
September 30, 2012, and Quarterly Report on Form 10-Q for the
quarter and nine months ended June 30, 2013, and other filings made
with the U.S. Securities and Exchange Commission. These
factors could affect the Company's financial performance and could
cause the actual results for future periods to differ materially
from any opinions or statements expressed with respect to future
periods in any current statements. Neither the Company nor the
Bank undertake and specifically decline any obligation to update
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.
|
|
|
CMS Bancorp,
Inc. |
CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION |
(Unaudited) |
|
|
|
|
June 30, 2013 |
September 30, 2012 |
|
(Dollars in thousands, |
|
except per share data) |
ASSETS |
|
|
Cash and amounts due from depository
institutions |
$792 |
$1,340 |
Interest-bearing deposits |
3,451 |
501 |
|
|
|
Total cash and cash
equivalents |
4,243 |
1,841 |
Securities available for sale |
41,220 |
48,361 |
Loans held for sale |
— |
2,426 |
Loans receivable, net of allowance for loan
losses of $830 and $967, respectively |
209,508 |
201,462 |
Other real estate owned |
518 |
— |
Premises and equipment |
2,818 |
3,054 |
Federal Home Loan Bank of New York stock, at
cost |
1,309 |
2,032 |
Accrued interest receivable |
1,056 |
1,006 |
Other assets |
1,818 |
4,484 |
|
|
|
Total assets |
$262,490 |
$264,666 |
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
Liabilities: |
|
|
Deposits |
$215,417 |
$203,516 |
Advances from Federal Home Loan
Bank of New York |
20,949 |
37,130 |
Advance payments by borrowers
for taxes and insurance |
1,791 |
844 |
Other liabilities |
1,154 |
1,218 |
|
|
|
Total liabilities |
239,311 |
242,708 |
|
|
|
Stockholders' equity: |
|
|
Preferred stock, $.01 par
value, 1,000,000 shares authorized, 1,500 shares issued
and outstanding at June 30, 2013 (liquidation preference value
$1,000 per share) |
1 |
— |
Common stock, $.01 par value,
authorized shares: 7,000,000; shares issued: 2,055,165; shares
outstanding: 1,862,803 |
21 |
21 |
Additional paid-in capital |
20,263 |
18,728 |
Retained earnings |
6,893 |
6,101 |
Treasury stock, 192,362
shares |
(1,660) |
(1,660) |
Unearned Employee Stock
Ownership Plan ("ESOP") shares |
(1,301) |
(1,343) |
Accumulated other comprehensive
income (loss) |
(1,038) |
111 |
|
|
|
Total stockholders' equity |
23,179 |
21,958 |
|
|
|
Total liabilities and
stockholders' equity |
$262,490 |
$264,666 |
|
|
|
|
|
|
|
|
CMS Bancorp,
Inc. |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
Three Months |
Nine Months |
|
Ended |
Ended |
|
June 30, |
June 30, |
|
2013 |
2012 |
2013 |
2012 |
|
(Dollars in thousands, except
per share data) |
Interest income: |
|
|
|
|
Loans |
$2,620 |
$2,504 |
$7,792 |
$7,599 |
Securities |
196 |
259 |
647 |
739 |
Other interest-earning
assets |
20 |
20 |
69 |
82 |
|
|
|
|
|
Total interest income |
2,836 |
2,783 |
8,508 |
8,420 |
|
|
|
|
|
Interest expense: |
|
|
|
|
Deposits |
364 |
483 |
1,110 |
1,507 |
Mortgage escrow funds |
12 |
8 |
40 |
24 |
Borrowings, short term |
2 |
6 |
31 |
11 |
Borrowings, long term |
177 |
175 |
524 |
854 |
|
|
|
|
|
Total interest expense |
555 |
672 |
1,705 |
2,396 |
|
|
|
|
|
Net interest income |
2,281 |
2,111 |
6,803 |
6,024 |
Provision for loan losses |
25 |
275 |
393 |
640 |
|
|
|
|
|
Net interest income after provision for loan
losses |
2,256 |
1,836 |
6,410 |
5,384 |
|
|
|
|
|
Non-interest income: |
|
|
|
|
Fees and service charges |
40 |
42 |
124 |
128 |
Net gain on sale of loans |
52 |
36 |
229 |
114 |
Net gain on sale of
securities |
— |
243 |
— |
782 |
Other |
6 |
6 |
10 |
24 |
|
|
|
|
|
Total non-interest income |
98 |
327 |
363 |
1,048 |
|
|
|
|
|
Non-interest expense: |
|
|
|
|
Salaries and employee
benefits |
981 |
1,144 |
3,061 |
3,310 |
Net occupancy |
307 |
317 |
940 |
914 |
Equipment |
189 |
187 |
575 |
568 |
Professional fees |
(97) |
163 |
161 |
458 |
Advertising |
6 |
15 |
21 |
60 |
Federal insurance premiums |
57 |
54 |
167 |
155 |
Directors' fees |
57 |
98 |
159 |
223 |
Other insurance |
22 |
22 |
65 |
65 |
Bank charges |
7 |
7 |
22 |
30 |
Penalty assessed on early
repayment of borrowings |
— |
133 |
— |
614 |
Charter conversion |
— |
89 |
5 |
181 |
Other |
144 |
160 |
430 |
454 |
|
|
|
|
|
Total non-interest expense |
1,673 |
2,389 |
5,606 |
7,032 |
|
|
|
|
|
Income (loss) before income taxes |
681 |
(226) |
1,167 |
(600) |
Income tax expense (benefit) |
180 |
(76) |
365 |
(210) |
|
|
|
|
|
Net income (loss) |
$501 |
$ (150) |
$802 |
$ (390) |
Preferred stock dividends |
10 |
— |
10 |
— |
Net income available to common
stockholders |
$491 |
$ (150) |
$792 |
$ (390) |
|
|
|
|
|
Net income (loss) per common share: |
|
|
|
|
Basic and diluted |
$0.28 |
$ (0.09) |
$0.46 |
$ (0.23) |
|
|
|
|
|
Weighted average number of common shares
outstanding: |
|
|
|
|
Basic |
1,732,642 |
1,721,965 |
1,731,267 |
1,720,590 |
Diluted |
1,733,470 |
1,721,965 |
1,731,791 |
1,720,590 |
|
|
|
|
|
CONTACT: Stephen E. Dowd,
Senior Vice President & Chief Financial Officer,
914-422-2700
(MM) (NASDAQ:CMSB)
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