Community Savings, F.A. announces financial results.

NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 17, 1995-- Community Savings, F.A. (NASDAQ:CMSV) announced Tuesday that net income for the first quarter ended Dec. 31, 1994 was $1.1 million, or 22 cents per share.

This compared to net income of $929,000 for the quarter ended Dec. 31, 1993. The primary difference in net income was a $285,000 increase in net interest income along with a $125,000 decrease in losses on disposal of securities available for sale, partially offset by increases in provision for loan losses and non-interest expenses and provision for income taxes, and a decrease in other non-interest income.

On Oct. 24, 1994, the Association completed its reorganization into the mutual holding company form of ownership. As part of the reorganization, the Association completed a minority stock offering wherein it received $34.0 million in net proceeds.

Core earnings, which are defined as net income from recurring operations, amounted to $1.0 million for the three months ended Dec. 31, 1994. Core earnings were $924,000 for the same period in 1993.

Events categorized as nonrecurring are as follows: gains from a real estate venture of $96,000 and $126,000 for the three months ended Dec. 31, 1994 and 1993, respectively; a net loss of $125,000 on securities available for sale for the quarter ended Dec. 31, 1993 and a net gain of $4,000 on the sale of loans during the quarter ended Dec. 31, 1993.

Total assets decreased to $524.4 million at Dec. 31, 1994 from $560.3 million at Sept. 30, 1994. This was primarily due to cash outflow used to fund the return of excess stock subscriptions of approximately $25.5 million. This was the primary reduction in cash and cash equivalents which decreased $38.2 million to $51.6 million at Dec. 31, 1994 from $89.8 million at Sept. 30, 1994.

Investment securities increased $1.6 million to $53.8 million at Dec. 31, 1994 from $52.2 million at Sept. 30, 1994, due primarily to additional investment of $8.0 million in certificates of deposit offset by maturities, principal reductions, and the amortization of yield adjustments totaling $6.4 million.

Total deposits decreased by $41.9 million to $418.1 million at Dec. 31, 1994 from $460.0 million at Sept. 30, 1994 due primarily to the conclusion of the reorganization into the mutual holding company form of ownership wherein $25.5 million in excess stock subscriptions was returned to the subscribers, as well as $10.3 million in deposits which was transferred to capital as a purchase of common stock. In addition, upon the close of the reorganization, the Association transferred stock subscriptions of $25.4 million to capital.

Equity increased $31.9 million to $70.0 million at Dec. 31, 1994 from $38.1 million at Sept. 30, 1994 due primarily to the issuance of common stock of $35.7 million, net income for the quarter ended Dec. 31, 1994 of $1.1 million, partially offset by purchases of $2.8 million of common stock to fund the Association's ESOP plan, and costs of the reorganization of $1.5 million.

Net interest income increased to $4.9 million for the quarter ended Dec. 31, 1994 from $4.6 million for the quarter ended Dec. 31, 1993. This increase was primarily the result of an increase of 17 basis points in the net interest margin to 3.74% for the period ended Dec. 31, 1994 as compared to 3.57% for the same period in 1993, as well as a $21.4 million increase in net interest-earning assets (interest-earning assets less interest-bearing liabilities) to $36.7 million for the period ended Dec. 31, 1994 from $15.0 million for the comparable period in 1993.

Provision for loan losses increased to $108,000 for the three months ended Dec. 31, 1994 from $41,000 for the same period in 1993. This increase of $67,000 was attributable to management's assessment of the decline in fair value for certain classified assets which required additional provisions.

Other income increased to $850,000 for the three months ended Dec. 31, 1994 from $777,000 for the three months ended Dec. 31, 1993. Operating expenses increased to $3.9 million for the quarter ended Dec. 31, 1994 from $3.8 million for the quarter ended Dec. 31, 1993. Provision for income taxes increased to $673,000 for the three months ended Dec. 31, 1994 from $615,000 for the same period in 1993 due primarily to the increase in pre-tax income.

Community Savings has 17 full service facilities throughout Palm Beach, Martin and St. Lucie counties. The stock trades on NASDAQ under the symbol CMSV.

Financial highlights for Community Savings are attached. Such results of operations are unaudited and are subject to change after the completion of the annual audit. -0-

                         COMMUNITY SAVINGS, F.A.

                                  At           At
                               Dec. 31,     Sept. 30,
                                 1994         1994
                                 ----         ----
                              (Unaudited)   (Audited)
                                  (In Thousands)

Selected Consolidated Financial Data:

Total assets                   $524,377     $560,268
Cash and cash equivalents        51,553       89,843
Investment securities and
 securities available for
 sale                            80,271       78,933
Loans receivable, net           318,763      317,117
Mortgage-backed and
 related securities              41,941       41,281
Real estate owned, net            3,689        3,686
In-substance foreclosures           347          347
Deposits                        418,083      459,979
Stock subscriptions                --         25,384
Equity                           70,012       38,110

                                Three Months Ended
                                      Dec. 31,
                                 1994         1993
                                 ----         ----
                                    (Unaudited)
                               (Dollars in thousands)

Consolidated Statements of Operations:

Interest income                $  8,872     $  8,809
Interest expense                  3,960        4,182
  Net interest income             4,912        4,627
Provision for loan losses           108           36
Other income                        850          777
Operating expense                 3,915        3,824
Provision for income taxes          673          615
  Net income                   $  1,066     $    929
Earnings per share             $   0.22          N/A
Weighted average common
 shares outstanding           4,887,160          N/A


                             Three Months  Twelve Months
                                Ended         Ended
                               Dec. 31,     Sept. 30,
                                 1994         1994
                                 ----         ----
                              (Unaudited)   (Audited)

Selected Financial Ratios:

Return on average assets (1)     0.80%        0.71%
Return on average equity (1)     6.73%       10.27%
Interest rate spread             3.74%        3.69%
Equity to assets at period end  13.35%        6.80%
Non-interest income to
  average assets (1)             0.63%        0.63%
Non-interest expense to
  average assets (1)             2.92%        2.82%
Non-performing loans to
  total loans                    0.92%        0.93%
Non-performing assets
  to total assets                1.26%        1.25%
Allowance for loan losses
  to non-performing loans      117.70%      114.72%
Allowance for loan losses
  to total loans                 1.08%        1.12%
Net yield on average
  interest-earning assets (1)    4.00%        3.79%
Average interest-earning
  assets to average
  interest-bearing
  liabilities                  108.10%      103.08%

(1)  Ratio is annualized for Dec. 31, 1994.

CONTACT: Community Savings, F.A., North Palm Beach

James B. Pittard Jr., or Larry J. Baker,

407/881-4800