AJS Bancorp, Inc. Announces Year End Earnings.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. -- 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. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :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 , 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 $431,000 for the quarter ended December December: see month. 31, 2004 as compared to $279,000 for the same quarter in 2003. Basic earnings were $0.20 per share, 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 $0.19 per share for the quarter ended December 31, 2004 compared to basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.12 for the quarter ended December 31, 2003. The increase in net income resulted primarily from an increase in net interest income and a decrease in noninterest expense. Net income for the year ended December 31, 2004 was $1.6 million compared to net income of $1.4 million for the year ended December 31, 2003. Basic earnings were $0.70 per share, diluted earnings were $0.69 per share for the year ended December 31, 2004 compared to basic and diluted earnings per share of $0.60 for the year ended December 31, 2003. As discussed in more detail below, the increase in net income for the comparative twelve-month period primarily reflects an increase in net interest income and a decrease in noninterest expense, offset by a decrease in noninterest income. All information except for the year ended December 31, 2003 is unaudited. Total assets as of December 31, 2004 were $270.9 million, an increase of $32.5 million or 13.6% from $238.4 million at December 31, 2003. The increase was primarily due to increases in federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve sold, certificates of deposit, and securities offset by a decrease in cash. We invested in certificates of deposit at other financial institutions, and mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. in order to attain slightly higher yields while maintaining a high degree of liquidity. The mortgage-backed securities are expected to mature in ten to fifteen years, however prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. may cause them to pay down at a faster pace. Total deposits increased $14.2 million or 7.7% to $198.1 million at December 31, 2004 from $183.8 million at December 31, 2003. The increase was primarily in certificates of deposit and money market accounts. FHLB FHLB Federal Home Loan Bank advances increased to $36.3 million at December 31, 2004 from $17.0 million at December 31, 2003. The Company had non-performing assets of $971,000 as of December 31, 2004 and $1.2 million as of December 31, 2003. The allowance for loan losses was $1.8 million at December 31, 2004 and $2.0 million at December 31, 2003. This represents a ratio of allowance for loan losses to gross loans receivable of 1.12% at December 31, 2004 and 1.24% at December 31, 2003. 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 $1.6 million to $30.5 million at December 31, 2004 from $32.1 million at December 31, 2003. The decrease in stockholders' equity during the past twelve months primarily resulted from the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of shares of the Company's stock. This decrease was offset by net income of $1.6 million for the twelve months ended December 31, 2004. INCOME INFORMATION -THREE MONTH PERIODS ENDED DECEMBER 31, 2004 AND 2003: Net interest income increased by $60,000 or 3.3% to $1.9 million for the quarter ended December 31, 2004 when compared to the same quarter in 2003. The increase in net interest income was primarily due to increased average 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 . Average interest earning assets were $262.8 million and $225.4 million during the comparative 2004 and 2003 quarters while the average yield was 5.02% and 5.37%, respectively. Our net interest rate spread decreased 39 basis points to 2.57% from 2.96% while our net interest margin decreased 37 basis points to 2.84% from 3.21%. The ratio of average interest-earning assets to average interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities increased to 112.45% for the three months ended December 31, 2004 from 111.46% for the same period in 2003. The decrease in the spread and the margin was largely due to the decrease in the yield of interest earning assets as assets continued to reprice downward, reflecting the impact of the flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. yield curve. There was no provision for loan losses for either of the three months ended December 31, 2004 or December 31, 2003. However, there were $40,000 in loan loss recoveries during the three months ended December 31, 2004. Any loan loss provisions made are to maintain the allowance to reflect management's estimate of losses known and inherent in our loan portfolio. Management concluded that no additional provisions were necessary during the three months ended December 31, 2004 or 2003. Should any unforeseen risks present themselves however, management may need to make a provision for loan losses in the future. Noninterest income increased $7,000 to $251,000 for the quarter ended December 31, 2004 from $244,000 for the comparable quarter in 2003. Other noninterest income increased $33,000 or 132.0% for the quarter ended December 31, 2004 when compared to income for the same quarter in 2003. This increase was offset by a decrease in insurance commissions of $13,000 or 15.1% for the comparable quarter. Other noninterest income increased due to a $27,000 decrease in the net loss on the sale of REO reo Noun NZ a language [Maori] , and a $13,000 increase in 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. fees for the comparable quarters. The increase in the net gain on the sale of REO resulted from losses taken during the quarter ended December 31, 2003 that were realized after the property became REO. The increase in correspondent fees occurred due to an increase in loan volume and income from that department. Insurance commissions dropped due to lower sales of variable and fixed rate annuities due to customer's reluctance to enter the market at a time of historically low interest rates, as well as reduced staffing in the department. Noninterest expense decreased by $68,000 to $1.6 million at December 31, 2004 when compared to expense for the same quarter in 2003. Salaries and employee benefits decreased $71,000 or 7.5%, offset by an increase in data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a costs of $15,000 or 19.0% for the quarter ended December 31, 2004 when compared the same quarter in 2003. Salaries and employee benefits decreased primarily due to a reduction in the number of full time equivalent employees to 66 at December 31, 2004 from 69 at December 31, 2003. Data processing costs increased due to the addition of internet banking and the associated expenses that are incurred as a result of offering this product. INCOME INFORMATION - YEAR ENDED DECEMBER 31, 2004 AND 2003: Net interest income increased by $281,000 or 3.9% to $7.6 million for the year ended December 31, 2004 from $7.3 million for the same period in 2003. Average interest earning assets were $249.5 million and $227.4 million during the comparative 2004 and 2003 twelve-month periods while the average yield was 5.11% and 5.43%, respectively. Our net interest rate spread decreased 15 basis points to 2.78% from 2.93% while our net interest margin decreased 17 basis points to 3.03% from 3.20%. The ratio of average interest-earning assets to average interest-bearing liabilities remained the same at 112.29% for both the year ended December 31, 2004 and 2003. 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 downward repricing of 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. . We did not increase our provision for loan losses during the twelve months ended December 31, 2004 or 2003. However, there were $112,000 in loan loss recoveries during the year ended December 31, 2004, and $61,000 in recoveries during the year ended December 31, 2003. Noninterest income decreased to $933,000 for the year ended December 31, 2004 from $1.1 million for the comparable period in 2003. The $158,000 decrease was the result of reductions in insurance commission income, service charge income, and other non-interest income at December 31, 2004 when compared to the year ended December 31, 2003. Noninterest expense decreased to $6.2 million for the year ended December 31, 2004 from $6.3 million for the year ended December 31, 2003. The $64,000 decrease was primarily due to reductions in 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 expense, and other noninterest expense items, offset by an increase in advertising and promotion expense when comparing the twelve month periods ended December 31, 2004 and 2003. 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)
31-Dec-04 31-Dec-03
ASSETS
Cash and due from financial Institutions $13,717 $19,801
Federal funds Sold 3,314 0
---------- -----------
TOTAL CASH AND CASH EQUIVALENTS 17,031 19,801
Certificates of deposit 9,783 0
Securities 61,615 42,652
Loans receivable net of allowance for loan loss
of $1,847 at December 31, 2004, and $1,962
at December 31, 2003. 163,291 155,628
Federal Home Loan Bank Stock 12,459 13,612
Premises and equipment 4,760 4,875
Accrued interest receivable & other assets 1,930 1,816
---------- -----------
TOTAL ASSETS $270,869 $238,384
========== ===========
LIABILITIES AND SHAREHOLDER'S EQUITY
Deposits 198,056 $183,847
Federal Home Loan Bank advances 36,250 17,000
Advance payments by borrowers for taxes
and insurance 1,795 1,651
Accrued expenses and other liabilities 4,238 3,781
---------- -----------
TOTAL LIABILITIES 240,339 206,279
TOTAL EQUITY 30,530 32,105
---------- -----------
TOTAL LIABILITIES AND EQUITY $270,869 $238,384
========== ===========
31-Dec-04 31-Dec-03
INTEREST INCOME & DIVIDEND INCOME
Loans, including fees $9,405 $9,346
Securities 2,226 2,234
Interest earning deposits & other 1,037 669
Federal Funds Sold 69 98
---------- -----------
TOTAL INTEREST INCOME 12,737 12,347
INTEREST EXPENSE ON DEPOSITS
Deposits 4,046 4,210
Federal Home Loan Bank & Other 1,132 859
---------- -----------
Total Interest Expense 5,178 5,069
---------- -----------
NET INTEREST INCOME 7,559 7,278
Provision (recovery) for loan losses (112) (61)
---------- -----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 7,671 7,339
NON-INTEREST INCOME
Insurance commissions 232 314
Service charges on accounts 502 539
Other 199 238
---------- -----------
TOTAL NON-INTEREST INCOME 933 1,091
NON-INTEREST EXPENSE
Salaries and employee benefits 3,621 3,632
Occupancy 781 868
Advertising & promotion 372 309
Data processing 378 361
Other 1,039 1,085
---------- -----------
TOTAL NON-INTEREST EXPENSE 6,191 6,255
INCOME BEFORE INCOME TAXES 2,413 2,175
Income Tax Expense 833 782
---------- -----------
NET INCOME $1,580 $1,393
========== ===========
Earnings per share, basic $0.70 $0.60
Earnings per share, diluted $0.69 $0.60
AJS BANCORP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
Dollars in thousands
For the Three months ended 12/31/04
For the For the
Three Three
Months Months
ended ended
12/31/2004 12/31/2003
INTEREST INCOME & DIVIDEND INCOME
Loans, including fees $2,348 $2,301
Securities 597 461
Interest earning deposits & other 330 261
Federal Funds Sold 26 5
----------- -----------
TOTAL INTEREST INCOME 3,301 3,028
INTEREST EXPENSE ON DEPOSITS
Deposits 1,067 1,004
Federal Home Loan Bank & Other 365 215
----------- -----------
Total Interest Expense 1,432 1,219
----------- -----------
NET INTEREST INCOME 1,869 1,809
Provision (recovery) for loan losses (40) 0
----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 1,909 1,809
NON-INTEREST INCOME
Insurance commissions 73 86
Service charges on deposit accounts 120 133
Other 58 25
----------- -----------
TOTAL NON-INTEREST INCOME 251 244
NON-INTEREST EXPENSE
Salaries and employee benefits 882 953
Occupancy 205 215
Advertising & promotion 109 109
Data processing 94 79
Other 282 284
----------- -----------
TOTAL NON-INTEREST EXPENSE 1,572 1,640
INCOME BEFORE INCOME TAXES 588 413
Income Tax Expense 157 134
----------- -----------
NET INCOME $431 $279
=========== ===========
AJS Bancorp, Inc.
Financial Highlights
(unaudited) December 31, December 31,
2004 2003
(In thousands)
Selected Financial Highlights:
-------------------------------------------
Total assets $270,869 $238,384
Loans receivable, net 163,291 155,628
Securities 61,615 42,652
Deposits 198,056 183,847
Federal Home Loan Bank advances 36,250 17,000
Stockholders' equity 30,530 33,351
Book value per share (1) 13.58 14.16
Number of shares outstanding (2) 2,248,238 2,355,180
Three months Three months
ended ended
December 31, December 31,
2004 2003
(In thousands except per
share information)
Selected Operations Data:
-------------------------------------------
Total interest income $3,301 $3,028
Total interest expense 1,432 1,219
------------ ------------
Net interest income 1,869 1,809
Provision for loan losses (40) 0
------------ ------------
Net interest income after provision
for loan losses 1,909 1,809
Noninterest income 251 244
Noninterest expense 1,572 1,640
------------ ------------
Income before taxes 588 413
Income tax provision 157 134
------------ ------------
Net income 431 279
============ ============
Earnings per share, basic $0.20 $0.12
Earnings per share, diluted $0.19 $0.12
Three months Three months
ended ended
December 31, December 31,
2004 2003
Selected Operating Ratios:
-------------------------------------------
Return on average assets 0.63% 0.47%
Return on average equity 5.67% 3.36%
Interest rate spread during the period 2.57% 2.96%
Net interest margin 2.84% 3.21%
Average interest-earning assets to average
interest-bearing liabilities 112.45% 111.46%
Efficiency ratio (3) 74.15% 79.88%
Twelve months Twelve months
ended ended
December 31, December 31,
2004 2003
(In thousands except
per share information)
Selected Operations Data:
-------------------------------------------
Total interest income $12,737 $12,347
Total interest expense 5,178 5,069
------------ ------------
Net interest income 7,559 7,278
Provision for loan losses (112) (61)
------------ ------------
Net interest income after provision
for loan losses 7,671 7,339
Noninterest income 933 1,091
Noninterest expense 6,191 6,255
------------ ------------
Income before taxes 2,413 2,175
Income tax provision 833 782
------------ ------------
Net income 1,580 1,393
============ ============
Earnings per share, basic $0.70 $0.60
Earnings per share, diluted $0.69 $0.60
Twelve months Twelve months
ended ended
December 31, December 31,
2004 2003
Selected Operating Ratios:
-------------------------------------------
Return on average assets 0.61% 0.58%
Return on average equity 5.07% 4.15%
Interest rate spread during the period 2.78% 2.93%
Net interest margin 3.03% 3.20%
Average interest-earning assets to average
interest-bearing liabilities 112.29% 112.29%
Efficiency ratio (3) 72.90% 74.74%
As of As of
December 31, December 31,
2004 2003
------------ ------------
Asset Quality Ratios:
-------------------------------------------
Non-performing assets to total assets 0.36% 0.49%
Allowance for loan losses to non-performing
loans 190.22% 172.71%
Allowance for loan losses to loans
receivable, gross 1.12% 1.24%
(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.
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