Community Savings Bankshares, Inc. Announces 29% Increase in Diluted Earnings Per Share for First Quarter.Business EditorsNORTH PALM BEACH, Fla.--(BUSINESS WIRE)--April 14, 2000 Community Savings Bankshares, Inc. ("Bankshares" or the "Company") (Nasdaq:CMSV CMSV Collgeg of Mount Saint Vincent (Riverdale, NY) ) announced today that 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 increased to $0.18, or 29%, for the quarter ended March 31, 2000 from $0.14 for the quarter ended March 31, 1999, partially as a result of the stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. Net income increased $222,000, or 16%, for the first quarter of 2000 to $1.6 million, from $1.4 million in the same quarter of 1999. The increase in net income was primarily the result of an increase in net interest income, offset by an increase in non-interest expense. Interest income which totaled $15.5 million increased 11% for the first quarter of 2000, as compared to the same period in 1999, primarily due to a 5% increase in the average balance of interest-earning assets, as well as a 40 basis point increase in the average yield earned on those assets. Loans secured by real estate were primarily responsible for these increases. An 18% increase in interest expense to $8.4 million for the first quarter of 2000 as compared to the same period in 1999 was primarily due to a 24 basis point increase in the average cost paid on interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities, as well as an 11% increase in the average balance of such liabilities. Quarter end assets totaled $905.8 million, an increase of $12.8 million from December December: see month. 31, 1999. Interest-earning deposits increased $18.2 million during the quarter ended March 31, 2000, as compared to December 31, 1999. These interest-earning deposits, as well as growth in the deposit portfolio, will be used to fund loan commitments. During this same time period, loans receivable decreased $2.2 million, deposits increased $22.5 million and borrowings decreased $11.7 million. New loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. totaled $46.7 million during the quarter ended March 31, 2000. This increase was offset by repayments totaling $48.0 million which included the payoff of a $21.0 million loan secured by land. Based on existing commitments for the second quarter of 2000, management anticipates the average balance of net loans receivable will increase. Loan quality continued to exceed industry standards with non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. at 0.11% of net loans receivable at March 31, 2000. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. B. Pittard, Jr., President and Chief Executive Officer commented, "We believe our success as a community-oriented financial institution depends on building long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. relationships with our customers while meeting their current financial needs. Our goals for 2000 include aggressively pursuing new loan opportunities with our customers, funding the resulting increase in our asset base with deposit growth. While we will still look for suitable locations for new branch offices, we will also evaluate the effectiveness of our existing branch network. We will continue to focus on improving our efficiency ratio, through cost reduction and enhanced fee income strategies. As part of the continued implementation of this strategy, the Board of Directors of Community Savings, F. A. (the "Association") has taken steps to terminate Terminate (terminat.exe) was a shareware modem terminal and host program for MS-DOS and compatible operating systems developed from the early to the late 1990s by the Dane Bo Bendtsen. The last release (5. the Association's defined benefit plan Defined benefit plan A pension plan obliging the sponsor to make specified dollar payments to qualifying employees at retirement. The pension obligations are effectively the debt obligation of the plan sponsor. Related: Defined contribution plan and replace it with a 401(k) defined contribution plan Defined contribution plan A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan . As a result of the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the defined benefit plan, the Company expects to recognize a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain in the second quarter estimated to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.0 million. However, in connection with the final settlement of the plan, which will not occur until receipt of a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. termination letter from the Internal Revenue Service, the Company expects to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. in the fourth quarter a settlement expense currently estimated to amount to $500,000." Mr. Pittard continued, "As part of our capital management plan and our continuing commitment to build shareholder value, we received 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. approval in November November: see month. 1999 to 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. 1,005,187 shares of common stock in the open market. During the quarter ended March 31, 2000, we repurchased 154,100 shares at an aggregate cost of $1.8 million (an average price of $11.85 per share). The remaining 111,087 shares to be repurchased are expected to be repurchased during 2000. In addition, consistent with the Company's policy, the Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a dividend for the quarter ended March 31, 2000 of $0.11 per share." Certain information in this press release may constitute forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information that involves risks and uncertainties that could cause actual results to differ materially from those estimated. Persons are cautioned that such 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. are not guarantees of future performance and are subject to various factors which could cause actual results to differ materially from those estimated. These factors include, but are not limited to, changes in general economic and market conditions, legislative and regulatory changes, monetary and fiscal policies of the federal government, demand for loan and deposit products and the development of an interest rate environment that adversely affects the interest rate spread or other income from Bankshares' investments and operations. Financial highlights for Bankshares and the Association, its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , follow. The information for the three months ended March 31, 2000 and 1999 is unaudited and subject to change.
Selected Financial Ratios Three Months Ended Year Ended
March 31, December 31,
2000 1999 1999
---- ---- ----
(Unaudited)
(Dollars in thousands)
Performance Ratios (1):
Return on average assets 0.72% 0.66% 0.76%
Return on average equity 5.58 4.14 5.02
Net interest rate spread 3.16 3.00 3.19
Net interest margin 3.45 3.48 3.62
Non-interest income to average
assets 0.41 0.46 0.45
Non-interest expense to average
assets 2.59 2.66 2.68
Dividend payout ratio 58.56 83.61 62.98
Asset Quality Ratios (2):
Non-performing loans to net
loans receivable 0.11 0.18 0.17
Non-performing assets to total
assets 0.13 0.21 0.17
Allowance for loan losses to
non-performing loans 607.25 333.79 377.57
Allowance for loan losses to
net loans receivable 0.66 0.60 0.64
Capital Ratios:
Shareholders' equity to total
assets (2) 12.77 15.98 12.96
Average equity to average
assets 12.84 15.88 15.15
Other Data:
Non-performing loans $ 662 $1,030 $1,039
Non-performing assets 1,219 1,771 1,533
Allowance for loan losses 4,020 3,438 3,923
(1) Ratios annualized for the three months ended March 31, 2000 and
1999
(2) End of period ratios
Consolidated Statements of Financial Condition
At At
March 31, December 31, Increase
2000 1999 (Decrease)
---- ---- ----------
(Unaudited)
(Dollars in thousands)
ASSETS
Cash and amounts due from
depository institutions $ 18,976 $ 22,057 $(3,081)
Interest-earning deposits 41,394 23,182 18,212
--------- --------- --------
Cash and cash equivalents 60,370 45,239 15,131
Securities available for
sale 144,444 144,840 (396)
Securities held to maturity 37,787 38,802 (1,015)
Loans receivable, net 606,198 608,369 (2,171)
Accrued interest receivable 3,346 3,788 (442)
Federal Home Loan Bank
stock - at cost 7,009 7,009 --
Premises and equipment, net 24,740 24,939 (199)
Real estate held for
investment 1,872 1,872 --
Investment in and advances
to real estate venture 12,943 11,633 1,310
Real estate owned, net 557 494 63
Other assets 6,513 5,989 524
--------- --------- --------
Total assets $905,779 $892,974 $12,805
--------- --------- --------
--------- --------- --------
LIABILITIES
Deposits:
Demand $ 43,058 $ 39,429 $ 3,629
NOW and statement savings 85,490 76,073 9,417
Savings 35,847 34,466 1,381
Money market 94,990 100,299 (5,309)
Certificates of deposit 377,019 363,676 13,343
--------- --------- --------
Total deposits 636,404 613,943 22,461
Mortgage-backed bond, net 14,277 14,508 (231)
Advances from the Federal
Home Loan Bank 128,750 140,186 (11,436)
Advances by borrowers for
taxes and insurance 3,486 1,403 2,083
Other liabilities 7,173 7,233 (60)
--------- --------- --------
Total liabilities 790,090 777,273 12,817
SHAREHOLDERS' EQUITY
Common stock; 2000,
9,289,808; 1999, 9,319,873
shares issued and
outstanding 10,571 10,571 --
Additional paid-in capital 93,816 93,744 72
Retained income -
substantially restricted 38,695 37,869 826
Common stock purchased by
Employee Stock Ownership
Plan (4,551) (4,722) 171
Common stock issued to
Recognition and Retention
Plans (2,442) (2,586) 144
Accumulated other
comprehensive income (3,432) (3,358) (74)
Treasury stock, at cost;
2000, 1,281,332;
1999, 1,251,267 shares (16,968) (15,817) (1,151)
--------- --------- --------
Total shareholders'
equity 115,689 115,701 (12)
--------- --------- --------
Total liabilities and
shareholders' equity $905,779 $892,974 $12,805
--------- --------- --------
--------- --------- --------
Book value per share (1) $ 13.43 $ 13.50
--------- --------- --------
--------- --------- --------
(1) Based on 8,612,261 and 8,609,146 shares outstanding or allocated
(excludes unallocated ESOP shares) at March 31, 2000 and
December 31, 1999, respectively.
Consolidated Statements of Operations
Three Months Ended
March 31, Increase
2000 1999 (Decrease)
---- ---- ----------
(Unaudited)
(Dollars in thousands)
Interest income:
Loans $11,667 $10,424 $1,243
Securities 3,187 2,483 704
Other interest and
dividend income 684 1,095 (411)
--------- --------- --------
Total interest income 15,538 14,002 1,536
Interest expense:
Deposits 6,054 5,525 529
Advances from Federal Home
Loan
Bank and other borrowings 2,343 1,621 722
--------- --------- --------
Total interest expense 8,397 7,146 1,251
--------- --------- --------
Net interest income 7,141 6,856 285
Provision for loan losses 150 322 (172)
--------- --------- --------
Net interest income after
provision for loan losses 6,991 6,534 457
--------- --------- --------
Other income:
Servicing income and other
fees 89 80 9
NOW account and other
customer fees 812 851 (39)
Net gain (loss) on real
estate owned 4 (12) 16
Miscellaneous 26 59 (33)
--------- --------- --------
Total other income 931 978 (47)
--------- --------- --------
Operating expense:
Employee compensation
and benefits 3,136 2,860 276
Occupancy and equipment 1,471 1,534 (63)
Advertising and promotion 235 288 (53)
Federal deposit insurance
premium 31 88 (57)
Miscellaneous 947 831 116
--------- --------- --------
Total operating expense 5,820 5,601 219
--------- --------- --------
Income before provision
for income taxes 2,102 1,911 191
Provision for income taxes 495 526 (31)
--------- --------- --------
Net income $ 1,607 $ 1,385 $ 222
--------- --------- --------
--------- --------- --------
Basic earnings per share (1) $ 0.19 $ 0.14
--------- ---------
--------- ---------
Diluted earnings per
share (1) $ 0.18 $ 0.14
--------- ---------
--------- ---------
Basic weighted average
common shares outstanding 8,627,615 9,920,292
--------- ---------
--------- ---------
Diluted weighted average
common shares outstanding 8,893,535 10,177,050
--------- ---------
--------- ---------
(1) Represents net income divided by the weighted average shares
outstanding for the periods presented.
Average Balance Sheet
For the Three Months Ended March 31,
2000 1999
------------------------ ------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------- -------- ---- ------- -------- ----
(Unaudited)
(Dollars In Thousands)
Interest-earning
assets:
Real estate loans $580,322 $ 11,191 7.71% $522,109 $ 9,971 7.64%
Consumer and
commercial
business 20,726 476 9.19 22,516 453 8.05
Securities held to
maturity and
available for
sale 182,618 3,187 6.98 150,095 2,483 6.62
Other
investments (1) 43,928 684 6.23 92,967 1,095 4.71
------- -------- ---- ------- -------- ----
Total
interest-earning
assets 827,594 15,538 7.51 787,687 14,002 7.11
------- -------- ---- ------- -------- ----
Non-interest-earning
assets 70,096 54,035
------- -------
Total assets $897,690 $841,722
------- -------
------- -------
Interest-bearing
liabilities:
Deposits $623,353 $ 6,054 3.88% $589,932 $ 5,525 3.75%
Borrowed funds 149,055 2,343 6.29 106,365 1,621 6.10
------- -------- ---- ------- -------- ----
Total
interest-bearing
liabilities 772,408 8,397 4.35 696,297 7,146 4.11
------- -------- ---- ------- -------- ----
Non-interest-bearing
liabilities 10,026 11,730
------- -------
Total
liabilities 782,434 708,027
Shareholders'
equity 115,256 133,695
------- -------
Total liabilities
and shareholders'
equity $897,690 $841,722
------- -------
------- -------
Net interest income $ 7,141 $ 6,856
-------- --------
-------- --------
Net interest rate spread (2) 3.16% 3.00%
---- ----
---- ----
Net yield on interest-earning
assets (3) 3.45% 3.48%
---- ----
---- ----
Ratio of average
interest-earning
assets to average
interest-bearing
liabilities 107.14% 113.13%
---- ----
---- ----
(1) Includes interest-earning deposits and Federal Home Loan Bank
stock.
(2) Net interest-rate spread represents the difference between the
weighted average yield earned on interest-earning assets and the
weighted average rate paid on interest-bearing liabilities.
(3) Net yield on interest-earning assets represents net interest
income as a percentage of average interest-earning assets.
Community Savings Bankshares, Inc., a Delaware-chartered stock holding company, is the parent holding company for Community Savings, F.A. Chartered in 1955, the Association is a federal stock savings and loan association savings and loan association, type of financial institution that was originally created to accept savings from private investors and to provide home mortgage services for the public. The first U.S. savings and loan association was founded in 1831. , the deposits of which are insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. by the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. . Headquartered in North Palm Beach, Florida North Palm Beach is an incorporated village in Palm Beach County, Florida, United States. The population was 12,064 at the 2000 census. As of 2004, the population recorded by the U.S. Census Bureau is 12,645. , the Association serves customers in Palm Beach, Martin, St. Lucie St. Lucie may refer to:
adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. offices. Please visit www.communitysavings.com for more information about the Company and the Association's loan and deposit products and services - including Online Banking. |
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