Community Savings Bankshares, Inc. Announces 35% Increase in Diluted Earnings Per Share for Second Quarter.Business Editors NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--July 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 35% to $0.23 for the quarter ended June June: see month. 30, 2000 from $0.17 for the quarter ended June 30, 1999, primarily as a result of an extraordinary gain on the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the Community Savings, F. A. (the "Association") 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 . Net income increased $275,000, or 16%, for the second quarter of 2000 to $2.0 million, as compared to $1.7 million for the same quarter of 1999. Diluted earnings per share for the six months ended June 30, 2000 was $0.41, a 37% increase from $0.30 for the same period in 1999. Net income increased $497,000, or 16%, for the first six months of 2000 to $3.6 million, from $3.1 million for the same period in 1999. As previously announced, the Association's Board of Directors 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 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, a $575,000 extraordinary gain, net of expenses and taxes, was recognized during the quarter ended June 30, 2000. However, in connection with the final settlement of the plan, which will not occur until the Association receives 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 Association currently estimates it will 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. a $310,000 settlement expense, net of taxes, in the fourth quarter of 2000. The $275,000 increase in net income during the quarter ended June 30, 2000 was primarily the result of the $575,000 net gain on the termination of the defined benefit plan offset by a $251,000 decrease in net interest income as compared to the same period in 1999. In the rising interest rate environment experienced during 2000, the Association's interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities repriced more rapidly than its interest-earning assets. As a result, the average cost of interest-bearing liabilities increased by 42 basis points while the average yield on interest-earning assets increased only 19 basis points. In addition, the average balance of interest-bearing liabilities increased 14% primarily due to the use of deposit products and borrowings to fund loan growth. as compared to an 8% increase in the average balance of interest-earning assets. Net income for the six months ended June 30, 2000 increased $497,000 as compared to the same period in 1999. Offsetting the $575,000 net gain on the termination of the defined benefit plan, the Association recognized a loss of $138,000 on the write down of a security available for sale. In addition, a $200,000 expense related to the real estate joint venture in Vero Beach Vero Beach (vēr`o), city (1990 pop. 17,350), seat of Indian River co., E Fla., on Indian River (a lagoon and part of the Intracoastal Waterway); founded c.1888, inc. 1919. was recorded during the six months ended June 30, 2000. At June 30, 2000, assets totaled $938.2 million, an increase of $45.2 million from December December: see month. 31, 1999. During this same time period, loans receivable increased $50.6 million. This loan growth was funded by increased deposits and borrowings totaling $25.1 million and $15.6 million, respectively, as well as by decreases of $5.1 million and $3.8 million in interest-earning deposits and the securities portfolio, respectively. 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. and purchases totaled $120.6 million and $21.0 million, respectively, during the six months ended June 30, 2000. The resulting increase in the loan portfolio was partially offset by repayments totaling $84.3 million. Based on existing commitments for the third quarter of 2000, management anticipates the average balance of net loans receivable will continue to increase. Loan quality continues 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 0.14% of net loans receivable at June 30, 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 are working hard to meet the challenges presented in this rising interest rate environment. We continue to aggressively pursue new loan opportunities in our market area, funding the resulting increase in our asset base primarily through deposit growth. We constantly evaluate new market opportunities as well as assess the effectiveness of our existing branch network. We continue to implement our cost reduction and enhanced fee income strategies." Mr. Pittard continued, "As part of our capital management plan and our ongoing commitment to build shareholder value, we have repurchased a significant percentage of our common stock in the open market. During the quarter ended June 30, 2000, we repurchased 42,200 shares at an aggregate cost of $441,000 (an average price of $10.46 per share). The remaining 68,887 shares approved for 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. are expected to be repurchased during the remainder of 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 June 30, 2000 of $0.11 per share." Financial highlights for Bankshares and the Association, its wholly-owned subsidiary, follow. The information for the three and six months ended June 30, 2000 and 1999 and the Selected Financial Ratios for the year ended December 31, 1999 are unaudited and subject to change.
Selected Financial Ratios Three Months Six Months Year
Ended Ended Ended
June 30, June 30, Dec. 31,
2000 1999 2000 1999 1999
---- ---- ---- ---- ----
(Unaudited)
(Dollars in thousands)
Performance Ratios (1):
Return on average
assets before
extraordinary gain 0.62% 0.81% 0.67% 0.73% 0.76%
Return on average assets
after extraordinary
gain (2) 0.68% 0.81% 0.73% 0.73% 0.76%
Return on average equity
before extraordinary
gain 4.91 5.21 5.24 4.67 5.02
Return on average equity
after extraordinary
gain (2) 5.40 5.21 5.74 4.67 5.02
Net interest rate spread 3.05 3.28 3.10 3.14 3.19
Net interest margin 3.34 3.73 3.39 3.60 3.62
Non-interest income to
average assets 0.34 0.47 0.38 0.47 0.45
Non-interest expense to
average assets 2.40 2.69 2.49 2.67 2.68
Dividend payout ratio
before extraordinary
gain 66.11 66.84 62.10 74.31 62.98
Dividend payout ratio
after extraordinary
gain (2) 60.05 66.84 56.73 74.31 62.98
Asset Quality Ratios (3):
Non-performing loans to
net loans receivable 0.14 0.12 0.14 0.12 0.17
Non-performing assets to
total assets 0.15 0.19 0.15 0.19 0.17
Allowance for loan
losses to
non-performing loans 416.27 502.35 416.27 502.35 377.57
Allowance for loan
losses to net loans
receivable 0.58 0.61 0.58 0.61 0.64
Capital Ratios:
Shareholders' equity to
total assets (3) 12.46 15.28 12.46 15.28 12.96
Average equity to
average assets 12.57 15.62 12.69 15.72 15.15
Other Data (3):
Non-performing loans $ 922 $ 722 $ 922 $ 722 $ 1,039
Non-performing assets 1,385 1,646 1,385 1,646 1,533
Allowance for loan
losses 3,838 3,627 3,838 3,627 3,923
(1) Ratios are annualized for the three and six months ended June
30, 2000 and 1999.
(2) Extraordinary items were treated as a one-time occurrence and
were included but not annualized.
(3) End of period ratios and balances.
Consolidated Statements of Financial Condition
At At
June 30, December 31, Increase
2000 1999 (Decrease)
---- ---- ----------
(Unaudited)
(Dollars in thousands)
ASSETS
Cash and amounts due from
depository institutions $ 21,756 $ 22,057 $ (301)
Interest-earning deposits 18,070 23,182 (5,112)
--------- --------- ---------
Cash and cash equivalents 39,826 45,239 (5,413)
Securities available for sale 143,378 144,840 (1,462)
Securities held to maturity 36,514 38,802 (2,288)
Loans receivable, net 658,995 608,369 50,626
Accrued interest receivable 3,941 3,788 153
Federal Home Loan Bank stock -
at cost 8,063 7,009 1,054
Premises and equipment, net 25,007 24,939 68
Real estate held for investment 2,161 1,872 289
Investment in and advances to
real estate venture 13,332 11,633 1,699
Real estate owned, net 463 494 (31)
Other assets 6,509 5,989 520
--------- --------- ---------
Total assets $ 938,189 $ 892,974 $ 45,215
========= ========= =========
LIABILITIES
Deposits:
Demand $ 43,456 $ 39,429 $ 4,027
NOW and statement savings 79,050 76,073 2,977
Savings 36,000 34,466 1,534
Money market 87,163 100,299 (13,136)
Certificates of deposit 393,398 363,676 29,722
--------- --------- ---------
Total deposits 639,067 613,943 25,124
Mortgage-backed bond, net 14,045 14,508 (463)
Advances from the Federal
Home Loan Bank 156,250 140,186 16,064
Advances by borrowers for
taxes and insurance 6,140 1,403 4,737
Other liabilities 5,777 7,233 (1,456)
--------- --------- ---------
Total liabilities 821,279 777,273 44,006
--------- --------- ---------
SHAREHOLDERS' EQUITY
Common stock; 2000, 9,247,608;
1999, 9,319,873 shares issued
and outstanding 10,571 10,571 --
Additional paid-in capital 93,867 93,744 123
Retained income- substantially
restricted 39,753 37,869 1,884
Common stock purchased by Employee
Stock Ownership Plan (4,380) (4,722) 342
Common stock issued to Recognition
and Retention Plans (2,192) (2,586) 394
Accumulated other comprehensive
income (3,300) (3,358) 58
Treasury stock, at cost; 2000,
1,323,532; 1999, 1,251,267
shares (17,409) (15,817) (1,592)
--------- --------- ---------
Total shareholders' equity 116,910 115,701 1,209
--------- --------- ---------
Total liabilities and
shareholders' equity $ 938,189 $ 892,974 $ 45,215
========= ========= =========
Book value per share (1) $ 13.57 $ 13.50
========= =========
(1) Based on 8,611,799 and 8,609,154 shares outstanding or
allocated (excludes unallocated ESOP shares) at June 30, 2000 and
December 31, 1999, respectively.
Consolidated Statements of Operations
Three Months Six Months
Ended Ended
June 30, Increase June 30, Increase
2000 1999 (Decrease) 2000 1999 (Decrease)
---- ---- ---------- ---- ---- ----------
(Unaudited)
(Dollars in thousands)
Interest income:
Loans $12,350 $11,103 $ 1,247 $24,017 $21,527 $ 2,490
Securities 3,104 2,599 505 6,291 5,082 1,209
Other interest
and dividend
income 572 782 (210) 1,256 1,877 (621)
------- ------- ------- ------ ------- ------
Total interest
income 16,026 14,484 1,542 31,564 28,486 3,078
Interest expense:
Deposits 6,313 5,372 941 12,367 10,897 1,470
Advances from
Federal Home
Loan Bank and
other
borrowings 2,576 1,724 852 4,919 3,345 1,574
------- ------- ------- ------ ------- -------
Total interest
expense 8,889 7,096 1,793 17,286 14,242 3,044
------- ------- ------- ------ ------- -------
Net interest
income 7,137 7,388 (251) 14,278 14,244 34
Provision for loan
losses 75 195 (120) 225 517 (292)
------- ------- ------ ------ ------- ------
Net interest
income after
provision for
loan losses 7,062 7,193 (131) 14,053 13,727 326
------ ------- ------ ------ ------- -------
Other income:
Servicing income
and other fees 68 110 (42) 157 190 (33)
NOW account and
other customer
fees 874 855 19 1,686 1,706 (20)
Net gain (loss)
on real estate
owned 21 (44) 65 25 (56) 81
Loss on write down
of securities
available for
sale (138) - (138) (138) - (138)
Equity in net loss
of real estate
venture (125) - (125) (200) - (200)
Miscellaneous 84 73 11 185 132 53
------- ------- ------- ------ ------- -------
Total other
income 784 994 (210) 1,715 1,972 (257)
------- ------- ------- ------ ------- ------
Operating expense:
Employee
compensation
and
benefits 3,099 3,133 (34) 6,235 6,014 221
Occupancy and
equipment 1,476 1,400 76 2,947 2,934 13
Advertising and
promotion 144 204 (60) 379 492 (113)
Federal deposit
insurance
premium 31 85 (54) 62 173 (111)
Miscellaneous 802 880 (78) 1,749 1,690 59
------- ------- ------- ------ ------- ------
Total
operating
expense 5,552 5,702 (150) 11,372 11,303 69
------- ------- ------- ------ ------- ------
Income before
provision for
income taxes 2,294 2,485 (191) 4,396 4,396 -
Provision for
income taxes 869 760 109 1,364 1,286 78
------- ------- ------- ------ ------- ------
Net income before
extraordinary
gain 1,425 1,725 (300) 3,032 3,110 (78)
Extraordinary
gain, net 575 - 575 575 - 575
------- ------- ------- ------ ------- ------
Net income $ 2,000 $ 1,725 $ 275 $3,607 $ 3,110 $ 497
======= ====== ======= ====== ====== =======
Basic earnings
per share
before
extraordinary
gain $ 0.17 $ 0.17 $ 0.35 $ 0.31
Extraordinary
gain 0.06 - 0.07 -
------- ------- ------ -------
Basic earnings
per share (1) $ 0.23 $ 0.17 $ 0.42 $ 0.31
======= ====== ====== ======
Diluted earnings
per share
before
extraordinary
gain $ 0.16 $ 0.17 $ 0.34 $ 0.30
Extraordinary
gain 0.07 - 0.07 -
------- ------- ------ -------
Diluted earnings
per share (1) $ 0.23 $ 0.17 $ 0.41 $ 0.30
======= ====== ====== ======
Basic weighted
average common
shares
outstanding 8,610,356 9,972,287 8,618,986 9,931,442
========= ========== ========= =========
Diluted
weighted
average common
shares
outstanding 8,850,132 10,346,608 8,865,108 10,334,827
========= ========== ========= ==========
(1) Represents net income divided by the weighted average shares
outstanding for the periods presented.
2000 1999
Average Balance Sheet
For the Three Months
Ended June 30,
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------- -------- ---- ------- -------- ----
(Dollars in thousands)
Interest-earning
assets:
Real estate
loans $619,624 $ 11,866 7.66% $556,920 $ 10,676 7.67%
Consumer
and
commercial
business 20,877 484 9.27 20,132 427 8.48
Securities
held to
maturity and
available
for sale 180,618 3,104 6.87 166,729 2,599 6.24
Other
investments
(1) 32,593 572 7.02 47,777 782 6.55
------ -------- ------ ---
Total
interest-
earning
assets 853,712 16,026 7.51 791,558 14,484 7.32
------ ---- ------ ----
Non-interest-
earning
assets 70,690 57,027
------ ------
Total
assets $924,402 $848,585
======== ========
Interest-
bearing
liabilities:
Deposits $637,569 $ 6,313 3.96% $587,790 5,372 3.66
Borrowed
funds 159,122 2,576 6.48 114,137 1,724 6.04
-------- -------- -------- -----
Total
interest-
bearing
liabilities 796,691 8,889 4.46 701,927 7,096 4.04
----- ---- ----- ----
Non-interest-
bearing
liabilities 11,521 14,122
------ ------
Total
liabilities 808,212 716,049
Shareholders'
equity 116,190 132,536
------- -------
Total
liabilities
and
shareholders'
equity $924,402 $848,585
======== ========
Net interest
income $ 7,137 $ 7,388
======= =======
Net interest
rate
spread (2) 3.05% 3.28%
===== =====
Net yield on
interest-
earning
assets (3) 3.34% 3.73%
===== =====
Ratio of
average
interest-earning
assets to
average
interest-bearing
liabilities 107.16% 112.77%
======= =======
======== ======
For the Six Months
Ended June 30, 2000 1999
(Dollars in thousands)
Interest-earning
assets:
Real estate
loans $602,024 $ 23,057 7.66% $539,356 $20,647 7.66%
Consumer and
commercial
business 20,833 960 9.22 20,611 880 8.54
Securities
held to
maturity and
available
for sale 181,529 6,291 6.93 158,895 5,082 6.40
Other
investments
(1) 36,899 1,256 6.81 71,572 1,877 5.25
--------- ------- ----- --------- -------
Total
interest-
earning
assets 841,285 31,564 7.50 790,434 28,486 7.21
------- ----- ------- -----
Non-interest-
earning
assets 70,506 56,063
------- -------
Total
assets $911,791 $846,497
========= =========
Interest-bearing
liabilities:
Deposits $ 629,609 $12,367 3.93% $589,552 10,897 3.70
Borrowed
funds 155,669 4,919 6.32 111,003 3,345 6.03
--------- ------- --------- -------
Total
interest-
bearing
liabilities 785,278 17,286 4.40 700,555 14,242 4.07
------- ----- ------- -----
Non-interest-
bearing
liabilities 10,787 12,889
--------- ---------
Total
liabilities 796,065 713,444
Shareholders'
equity 115,726 133,053
--------- ---------
Total
liabilities
and
shareholders'
equity $911,791 $846,497
========= =========
Net interest
income $14,278 $14,244
======= =======
Net interest rate
spread (2) 3.10% 3.14%
===== =====
Net yield
on interest-
earning
assets (3) 3.39% 3.60%
===== =====
Ratio of
average
interest-
earning
assets to
average
interest-
bearing
liabilities 107.13% 112.83%
======= =======
(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.
Consolidated Statements of Operations
Three Months Ended
June 30, March 31, Dec. 31, Sept. 30, June 30,
2000 2000 1999 1999 1999
(Unaudited)
(Dollars in thousands)
Interest income:
Loans $ 12,350 $ 11,667 $ 11,657 $ 11,331 $ 11,103
Securities 3,104 3,187 3,110 3,066 2,599
Other interest
and dividend
income 572 684 469 345 782
-------- -------- -------- -------- --------
Total interest
income 16,026 15,538 15,236 14,742 14,484
Interest expense:
Deposits 6,313 6,054 5,664 5,426 5,372
Advances from
Federal Home
Loan Bank
and other
borrowings 2,576 2,343 2,318 1,885 1,724
-------- -------- -------- -------- --------
Total interest
expense 8,889 8,397 7,982 7,311 7,096
-------- -------- -------- -------- --------
Net interest income 7,137 7,141 7,254 7,431 7,388
Provision for
loan losses 75 150 195 193 195
-------- -------- -------- -------- --------
Net interest
income after
provision for
loan losses 7,062 6,991 7,059 7,238 7,193
-------- -------- -------- -------- --------
Other income:
Servicing income
and other fees 68 89 93 104 110
NOW account and
other customer
fees 874 812 906 834 855
Net gain (loss)
on real estate
owned 21 4 (55) 22 (44)
Loss on write
down of
securities
available for
sale (138) -- (138) -- --
Equity in net
loss of real
estate venture (125) (75) (38) (8) --
Miscellaneous 84 101 53 93 73
-------- -------- -------- -------- --------
Total other
income 784 931 821 1,045 994
-------- -------- -------- -------- --------
Operating expense:
Employee
compensation
and benefits 3,099 3,136 2,785 3,115 3,133
Occupancy and
equipment 1,476 1,471 1,540 1,543 1,400
Advertising
and promotion 144 235 242 132 204
Federal deposit
insurance
premium 31 31 86 83 85
Miscellaneous 802 947 1,103 1,053 880
-------- -------- -------- -------- --------
Total operating
expense 5,552 5,820 5,756 5,926 5,702
-------- -------- -------- -------- --------
Income before
provision for
income taxes 2,294 2,102 2,124 2,357 2,485
Provision for
income taxes 869 495 378 679 760
-------- -------- -------- -------- --------
Net income before
extraordinary gain 1,425 1,607 1,746 1,678 1,725
Extraordinary
gain, net 575 -- -- -- --
-------- -------- -------- -------- --------
Net income $ 2,000 $ 1,607 $ 1,746 $ 1,678 $ 1,725
======== ======== ======== ======== ========
Basic earnings
per share before
extraordinary gain $ 0.17 $ 0.19 $ 0.19 $ 0.17 $ 0.17
Extraordinary gain 0.06 -- -- -- --
-------- -------- -------- -------- --------
Basic earnings
per share $ 0.23 $ 0.19 $ 0.19 $ 0.17 $ 0.17
======== ======== ======== ======== ========
Diluted earnings
per share before
extraordinary gain $ 0.16 $ 0.18 $ 0.18 $ 0.16 $ 0.17
Extraordinary gain 0.07 -- -- -- --
-------- -------- -------- -------- --------
Diluted earnings
per share $ 0.23 $ 0.18 $ 0.18 $ 0.16 $ 0.17
======== ======== ======== ======== ========
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 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. 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. 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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