AJS Bancorp, Inc. Announces Third Quarter Earnings.Business Editors MIDLOTHIAN Midlothian (mĭdlō`thēən), council area (1993 est. pop. 79,910), 137 sq mi (356 sq km), and former county, SE Scotland. Under the Local Government Act of 1973, Midlothian was divided between the former Lothian and Borders regions in , Ill.--(BUSINESS WIRE)--Oct. 22, 2003 AJS AJS American Journal of Sociology AJS American Judicature Society AJS American Journal of Surgery AJS Association for Jewish Studies AJS Americans for Job Security AJS Administration of Justice Studies AJS America-Japan Society AJS AJ Stevens Bancorp, Inc. (Electronic Bulletin Board; AJSB.OB), the holding company for A.J. Smith Federal Savings Bank Noun 1. federal savings bank - a federally chartered savings bank FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks of Midlothian, Illinois Midlothian is a village in Cook County, Illinois, United States. The population was 14,315 at the 2000 census. Geography Midlothian is located at (41.626383, -87.721373)GR1. today reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income of $331,000 for the third quarter ended September September: see month. 30, 2003 as compared to $576,000 for the same quarter in 2002. Basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings were $0.14 per share for the quarter ended September 30, 2003 compared to $0.25 per share for the same period in 2002. Net income for the nine months ended September 30, 2003 was $1.1 million compared to net income of $1.7 million for the nine months ended September 30, 2002. Basic and diluted earnings were 0.48 per share and 0.71 per share for the respective nine-month periods ended September 30, 2003 and 2002. As discussed in more detail below, the decreases in net income for the comparative three and nine-month periods primarily reflect decreases in net interest income and non-interest income and an increase in non-interest expense. Total assets as of September 30, 2003 were $239.5 million, an increase of $16.9 million or 7.6% from $222.6 million at December December: see month. 31, 2002. Loans receivable increased $15.7 million to $151.9 million at September 30, 2003 due to higher demand caused mostly by existing and new customers refinancing Refinancing An extension and/or increase in amount of existing debt. their mortgage in the historically low interest rate environment. Federal Home Loan Bank stock increased $8.9 million to $13.4 million at September 30, 2003 due to the above-market yield typically generated from the quarterly dividends paid on the stock. Total deposits increased $15.5 million or 9.2% to $184.5 million at September 30, 2003 from $169.0 million at December 31, 2002. This increase was largely due to greater marketing efforts and promotional deposit rates associated with the December 2002 opening of our new branch facility in Orland Park, Illinois Orland Park is a village in Cook County, Illinois, United States; it also extends slightly into Will County. The population was 51,077 at the 2000 census, and estimated to be 55,461 as of 2005. . Total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. decreased to $33.3 million at September 30, 2003 from $33.6 million at December 31, 2002. The decrease in stockholders' equity primarily reflects a decrease in other comprehensive income and the purchase of common stock during the period offset by net income of $1.1 million for the nine months ended September 30, 2003. In addition, at our annual meeting on May 21, 2003, shareholders approved the implementation of a recognition and retention plan (RRP RRP n abbr (= recommended retail price) → PVP m ). Awards made under the RRP will vest over five years, and will result in an increase in monthly compensation expense of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $18,000. Treasury shares, as well as new shares issued, were used to fund the RRP plan. INCOME INFORMATION -THREE MONTH PERIODS ENDED SEPTEMBER 30, 2003 AND 2002: Net interest income decreased by $98,000 or 5.1% to $1.8 for the quarter ended September 30, 2003 from $1.9 million for the same quarter in 2002. The decline in net interest income was primarily due to a decrease in the net interest rate spread and the net interest margin to 2.93% and 3.20%, respectively for the quarter ended September 30, 2003 from 3.41% and 3.74% for the prior year quarter. The decrease in the spread and the net interest margin was largely due to the decrease in the average yield on interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin exceeding the decrease in the cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. as interest earning assets and interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities both repriced downward in the declining interest rate environment that existed in 2003 and 2002. We did not establish a provision for loan losses during the quarters ended September 30, 2003 or 2002. However, there were $10,000 in loan loss recoveries during the three months ended September 30, 2003. At September 30, 2003 and December 31, 2002 our allowance for loan losses was $2.0 million and $2.1 million or 1.4% and 1.5% of total loans, respectively. Management does not believe that additional loan loss provisions are warranted at this time given the amount in the allowance for loan losses and the composition and inherent and known risks in our loan portfolio, however, should any unforeseen risks present themselves management may need to increase the provision in the future. Noninterest income decreased $115,000 to $297,000 for the quarter ended September 30, 2003. The decrease in noninterest income was due to a $30,000 decrease in insurance commissions, and a $108,000 decrease in other non-interest income, offset by a $23,000 increase in service charges. The decrease in insurance commissions is the result of lower overall insurance and annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. sales. Other noninterest income decreased primarily as a result of decreased profit on the sale of real estate. In addition, the Company made a decision to cut back the staffing in the correspondent A bank, Securities firm, or other financial institution that regularly renders services for another in an area or market to which the other party lacks direct access. A bank that functions as an agent for another bank and carries a deposit balance for a bank in another city. loan department, resulting in a decrease in loan volume and income from that department. Offsetting these decreases in other non-interest income was an increase in the profit on the sale of mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. . Service charges increased primarily due to prepayment penalties Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. charged on prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. commercial loans.Noninterest expense increased to $1.6 million from $1.4 million for the quarter ended September 30, 2003 compared to the same period in 2002. Salaries and benefits, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and other non-interest expense increased by $235,000, partially offset by a decrease in advertising and promotion costs of $16,000. The increase in salaries and benefit costs was partially the result of the implementation of the RRP. Also contributing to this rise in salaries and benefits were increases in compensation to employees, employee stock ownership expense, and group insurance. Occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal increased $44,000 due to increased real estate taxes and repairs and maintenance to the buildings. Other noninterest expense increased $41,000 as a result of increased postage POSTAGE. The money charged by law for carrying letters, packets and documents by mail. By act of congress of March 3, 1851, Minot's Statute at Large, U. S. 587, it is enacted as follows: 2.-Sec. 1. costs, and higher cash station fees. INCOME INFORMATION -NINE MONTH PERIODS ENDED SEPTEMBER 30, 2003 AND 2002: Net interest income decreased by $327,000 or 5.6% to $5.5 million for the nine months ended September 30, 2003 from $5.8 million for the same period in 2002. Our net interest rate spread decreased 57 basis points to 2.91% from 3.48% while our net interest margin decreased 66 basis points to 3.20% from 3.86%. The decrease in our net interest rate spread and net interest margin reflects the downward repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing of interest-bearing assets in excess of the repricing of cost of funds. Although market interest rates have not decreased significantly recently, the effects of the lower rates are still affecting our net interest income. We did not establish a provision for loan losses during the nine months ended September 30, 2003 compared to a $20,000 provision for loan losses for the same period in 2002. In addition, there were $61,000 in loan loss recoveries for the nine months ended September 30, 2003. During the nine months ended September 30, 2003, the Bank recovered a total of $61,000 on four separate mortgage loan losses. Management does not believe that additional loan loss provisions are warranted at this time given the amount in the allowance for loan losses and the composition and inherent and known risks in our loan portfolio, however, should any unforeseen risks present themselves management may need to increase the provision in the future. Noninterest income decreased $431,000 to $855,000 for the nine months ended September 30, 2003 from $1.3 million for the comparable period in 2002. The decrease was the result of reductions in insurance commission income and other noninterest income to $228,000 and $220,000, respectively for the nine months ended September 30, 2003. The decrease in insurance commissions was due to lower sales of annuity products during the nine-month period ended September 30, 2003 when compared to the same period in 2002. The decrease in other non-interest income was primarily due to a decrease in correspondent lending fees as a result of the Company's decision to cut back the staffing in that department which resulted in a decrease in loan volume. A decrease in the profit on the sale of real estate also contributed to lower other noninterest income. Noninterest expense increased $239,000 to $4.6 million for the nine months ended September 30, 2003 from $4.4 million for the comparable period in 2002. Salaries and benefits increased $223,000 for the comparable periods, occupancy costs increased $32,000, whereas advertising and promotion expense decreased $19,000 for the nine-month period ended September 30, 2003 compared to the same period in 2002. As mentioned in the quarterly information, the increase in salaries and benefit costs was partially the result of the implementation of the RRP. Also contributing to higher salary and benefit costs were increases in overall compensation and employee stock ownership plan expenses. Occupancy expenses increased due to increased real estate taxes and costs of repairs and maintenance to the office buildings offset somewhat by decreases in depreciation expenses. Advertising and promotion costs decreased due to a reduction in radio and television promotions. Other financial information is included in the tables that follow. This press release contains certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " which may be identified by the use of such words as "believe", "expect", "intend", "anticipate", "should", "planned", "estimated" and "potential". Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates and most other statements that are not historical in nature. These factors include, but are not limited to, general and local economic condition, changes in interest rates, deposit flows, demand for mortgage and other loans, real estate values, and competition; changes in accounting principles, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ; changes in legislation or regulation; and other economic, competitive, governmental, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , and technological factors affecting our operations, pricing, products and services.
AJS BANCORP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
Dollars in thousands (except per share data)
(Unaudited)
30-Sep-03 31-Dec-02
ASSETS
Cash and due from financial Institutions $17,529 $16,896
Federal funds Sold 4,000 6,000
--------------------
TOTAL CASH AND CASH EQUIVALENTS 21,529 22,896
Certificates of deposit 0 0
Securities 44,209 52,263
Loans receivable net of allowance for loan loss
of $2,012 at September 30, 2003, and $2,082
at December 31, 2002. 151,854 136,134
Federal Home Loan Bank Stock 13,377 4,477
Premises and equipment 4,842 4,595
Accrued interest receivable & other assets 3,677 2,205
--------------------
TOTAL ASSETS $239,488 $222,570
====================
LIABILITIES AND SHAREHOLDERS EQUITY
Deposits 184,502 $169,008
Federal Home Loan Bank advances 18,500 16,000
Advance payments by borrowers for taxes
and insurance 626 1,459
Accrued expenses and other liabilities 2,592 2,457
--------------------
TOTAL LIABILITIES 206,220 188,924
TOTAL EQUITY 33,268 33,646
--------------------
TOTAL LIABILITIES AND EQUITY $239,488 $222,570
====================
30-Sep-03 30-Sep-02
INTEREST INCOME & DIVIDEND INCOME
Loans, including fees $7,045 $7,365
Securities 1,773 2,216
Interest bearing deposits & other 408 279
Federal Funds Sold 93 50
--------------------
TOTAL INTEREST INCOME 9,319 9,910
INTEREST EXPENSE ON DEPOSITS
Deposits 3,206 3,546
Federal Home Loan Bank & Other 644 568
--------------------
Total Interest Expense 3,850 4,114
--------------------
NET INTEREST INCOME 5,469 5,796
Provision for loan losses (61) 20
--------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 5,530 5,776
NON-INTEREST INCOME
Insurance commissions 228 308
Service charges on deposit accounts 407 378
Other 220 600
--------------------
TOTAL NON-INTEREST INCOME 855 1,286
NON-INTEREST EXPENSE
Salaries and employee benefits 2,679 2,456
Occupancy 653 621
Data processing 282 291
Advertising & promotion 200 219
Other 809 797
--------------------
TOTAL NON-INTEREST EXPENSE 4,623 4,384
INCOME BEFORE INCOME TAXES 1,762 2,678
Income Tax Expense 648 1,015
--------------------
NET INCOME $1,114 $1,663
====================
Net Income per Share $0.48 $0.71
AJS BANCORP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
Dollars in thousands
For the Three months ended 9/30/03
For the Three For the Three
Months ended Months ended
9/30/2003 9/30/2002
INTEREST INCOME & DIVIDEND INCOME
Loans, including fees $2,364 $2,416
Securities 502 746
Interest bearing deposits & other 205 118
Federal Funds Sold 16 5
----------------------------
TOTAL INTEREST INCOME 3,087 3,285
INTEREST EXPENSE ON DEPOSITS
Deposits 1,040 1,160
Federal Home Loan Bank & Other 217 197
----------------------------
Total Interest Expense 1,257 1,357
----------------------------
NET INTEREST INCOME 1,830 1,928
Provision for loan losses (10) 0
----------------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,840 1,928
NON-INTEREST INCOME
Insurance commissions 72 102
Service charges on deposit accounts 150 127
Other 75 183
----------------------------
TOTAL NON-INTEREST INCOME 297 412
NON-INTEREST EXPENSE
Salaries and employee benefits 960 810
Occupancy 225 181
Data processing 97 89
Advertising & promotion 58 74
Other 279 238
----------------------------
TOTAL NON-INTEREST EXPENSE 1,619 1,392
INCOME BEFORE INCOME TAXES 518 948
Income Tax Expense 187 372
----------------------------
NET INCOME $331 $576
============================
AJS Bancorp, Inc.
Financial Highlights
(unaudited) September 30, December 31,
2003 2002
(In thousands)
Selected Financial Highlights:
------------------------------------
Total assets $239,488 $222,570
Loans receivable, net 151,854 136,134
Securities 44,209 52,263
Deposits 184,502 169,008
Federal Home Loan Bank advances 18,500 16,000
Stockholders' equity 33,268 33,646
Book value per share (1) 14.11 14.32
Number of shares outstanding (2) 2,357,923 2,350,338
Three months Three months
ended ended
September 30, September 30,
2003 2002
(In thousands except per
share information)
Selected Operations Data:
------------------------------------
Total interest income $3,087 $3,285
Total interest expense 1,257 1,357
----------------------------
Net interest income 1,830 1,928
Provision for loan losses (10) 0
----------------------------
Net interest income after provision
for loan losses 1,840 1,928
Noninterest income 297 412
Noninterest expense 1,619 1,392
----------------------------
Income before taxes 518 948
Income tax provision 187 372
----------------------------
Net income 331 576
============================
Earnings per share, basic and
diluted $0.14 $0.25
Three months Three months
ended ended
September 30, September 30,
2003 2002
Selected Operating Ratios:
------------------------------------
Return on average assets 0.55% 1.04%
Return on average equity 3.97% 6.96%
Interest rate spread during the
period 2.93% 3.41%
Net interest margin 3.20% 3.74%
Average interest-earning assets to average
interest-bearing liabilities 112.06% 112.39%
Efficiency ratio (3) 76.12% 59.49%
Nine months Nine months
ended ended
September 30, September 30,
2003 2002
(In thousands except per
share information)
Selected Operations Data:
------------------------------------
Total interest income $9,319 $9,910
Total interest expense 3,850 4,114
----------------------------
Net interest income 5,469 5,796
Provision for loan losses (61) 20
----------------------------
Net interest income after provision
for loan losses 5,530 5,776
Noninterest income 855 1,286
Noninterest expense 4,623 4,384
----------------------------
Income before taxes 1,762 2,678
Income tax provision 648 1,015
----------------------------
Net income 1,114 1,663
============================
Earnings per share, basic and
diluted $0.48 $0.71
Nine months Nine months
ended ended
September 30, September 30,
2003 2002
Selected Operating Ratios:
------------------------------------
Return on average assets 0.62% 1.04%
Return on average equity 4.42% 6.87%
Interest rate spread during the
period 2.91% 3.48%
Net interest margin 3.20% 3.86%
Average interest-earning assets to average
interest-bearing liabilities 112.56% 113.84%
Efficiency ratio (3) 73.10% 61.90%
As of As of
September 30, December 31,
2003 2002
----------------------------
Asset Quality Ratios:
------------------------------------
Non-performing assets to total
assets 0.28% 0.49%
Allowance for loan losses to non-
performing loans 319.49% 197.91%
Allowance for loan losses to loans
receivable, gross 1.37% 1.51%
(1) Shareholders' equity divided by number of shares outstanding.
(2) Total shares issued, less unearned ESOP shares, and treasury
shares.
(3) Non-interest expense divided by the sum of net interest income and
non-interest income.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion