Community Savings Bankshares, Inc. Announces Increase in Earnings for First Quarter.NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--April 16, 1999-- Community Savings Bankshares, Inc. ("Bankshares") (Nasdaq:CMSV CMSV Collgeg of Mount Saint Vincent (Riverdale, NY) ) announced today that net income for the quarter ended March 31, 1999 was $1.4 million or $0.14 per share, a $153,000 increase from $1.2 million or $0.12 per share for the quarter ended March 31, 1998. The increase was primarily the result of a $797,000 increase in net interest income of and a $155,000 decrease in the provision for income taxes, partially offset by increases of $625,000 and $205,000 in operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. and the provision for loan losses, respectively. Financial highlights for Bankshares and its wholly-owned subsidiary, Community Savings, F. A. (the "Association") follow. The information for the quarters ended March 31, 1999 and 1998 is unaudited and subject to change. -0-
At At
March 31, Dec. 31, Increase
1999 1998 (Decrease)
--------- --------- ----------
(Unaudited)
(Dollars in thousands)
ASSETS
Cash and cash equivalents $ 72,623 $117,015 $(44,392)
Securities available for sale 107,214 95,151 12,063
Securities held to maturity 47,814 52,619 (4,805)
Loans receivable, net 566,928 538,204 28,724
Real estate owned, net 741 522 219
Other assets 40,389 40,530 (141)
--------- --------- ----------
Total assets $835,709 $844,041 $ (8,332)
========= ========= ==========
LIABILITIES
Deposits $584,012 $594,400 $(10,388)
Advances from the Federal
Home Loan Bank 89,796 91,920 (2,124)
Other borrowings 15,192 15,430 (238)
Other liabilities 13,156 9,005 4,151
--------- --------- ----------
Total liabilities 702,156 710,755 (8,599)
Shareholders' equity 133,553 133,286 267
--------- --------- ----------
Total liabilities and
shareholders' equity $835,709 $844,041 $ (8,332)
========= ========= ==========
Number of shares
outstanding 10,548,884 10,548,884
========== ==========
Book value (1) $ 13.42 $ 13.43
======== =======
(1) Based on 9,951,721 and 9,921,979 shares outstanding or allocated
at March 31, 1999 and December 31, 1998, respectively.
Total assets decreased $8.3 million to $835.7 million at March 31, 1999 from $844.0 million at December December: see month. 31, 1998 primarily due to a $44.4 million decrease in cash and cash equivalents, offset in part by increases totaling $28.7 million and $7.3 million in the loan and securities portfolios, respectively. The decrease in cash and cash equivalents also funded the $10.4 million decrease in net deposits. The $28.7 million increase in the loan portfolio represented originations and purchases of new loans totaling $87.2 million and $6.0 million, respectively, partially offset by sales and normal amortization totaling $6.0 million and $58.5 million, respectively, as the Association continued to aggressively pursue 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. during the period. The $7.3 million increase in the securities portfolio reflected $23.4 million in purchases of securities available for sale, offset in part by calls and repayments totaling $5.0 million and $11.1 million, respectively, utilizing a portion of the funds received in the December stock offering and held in interest-earning accounts. Deposits decreased $10.4 million, to $584.0 million at March 31, 1999 from $594.4 million at December 31, 1998. The decrease in deposits primarily reflected increased competition for retail deposits in the Association's market area as odd-term certificates matured and were not renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. . Advances from the Federal Home Loan Bank decreased $2.1 million due to normal amortization of the advances. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased to $133.6 million at March 31, 1999 from $133.3 million at December 31, 1998, reflecting net income for the three months of $1.4 million, offset primarily by dividends aggregating $0.11 per share 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. during the quarter on the common stock. -0-
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended
March 31, Increase
1999 1998 (Decrease)
(Unaudited)
(Dollars in thousands)
----------- ----------- -----------
Interest income $ 14,002 $ 13,358 $ 644
Interest expense 7,146 7,299 (153)
----------- ----------- -----------
Net interest income 6,856 6,059 797
Provision for loan losses 322 117 205
Other income 978 947 31
Operating expense 5,601 4,976 625
Provision for income taxes 526 681 (155)
----------- ----------- -----------
Net income $ 1,385 $ 1,232 $ 153
=========== =========== ===========
Basic earnings per share (1) $ 0.14 $ 0.12
=========== ===========
Diluted earnings per share (1) $ 0.14 $ 0.12
=========== ===========
Basic weighted average
common shares outstanding 9,920,292 10,149,100
=========== ===========
Diluted weighted average
common shares outstanding 10,177,050 10,447,127
=========== ===========
(1) Represents net income divided by the weighted average shares
outstanding for the periods presented.
Net interest income increased to $6.9 million for the quarter ended March 31, 1999 from $6.1 million for the same period in 1998 primarily as a result of a $93.1 million increase in average interest-earning assets to $787.7 million for the three months ended March 31, 1999 from $694.6 million for the same period in the prior year. The increase in net interest income also reflected the effects of a decrease in the average cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities to 4.11% for the quarter ended March 31, 1999 from 4.55% for the same period in 1998. This increase was offset in part by a decrease in the average yield on interest-earning assets to 7.11% for the quarter ended March 31, 1999 from 7.69% for the same period in 1998 combined with a $54.5 million increase in average interest-bearing liabilities to $696.3 million for the three months ended March 31, 1999 from $641.8 million for the same period in 1998 primarily. The increase in average interest-bearing liabilities reflected $23.4 million and $31.1 million higher average balances for the quarter ended March 31, 1999 for the Association's deposit portfolio and borrowed funds, respectively, as the Association used such funds to support its expanding lending program. The provision for loan losses increased during the quarter ended March 31, 1999 to $322,000 as compared to $117,000 for the same period in 1998 primarily due to management's decision to increase the provision level to reflect loan portfolio growth during the period. Other income increased $31,000 to $978,000 for the quarter ended March 31, 1999 from $947,000 for the same period in 1998, primarily due to increased customer fees. Other operating expense increased $625,000 for the three months ended March 31, 1999, primarily due to increases of $520,000 in employee compensation and benefits as a result of increased compensation levels and commissions paid to loan originators, partially offset by reduced compensation for the stock benefit plans, $250,000 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 and equipment costs and $117,000 in advertising and marketing expense. These increases were offset in part by a $265,000 decrease in miscellaneous expense which reflected a reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of a $127,000 loss reserve previously recorded which was recovered from an insurance company during March 1999, as well as a reduction in loan expense of $228,000. -0-
SELECTED FINANCIAL RATIOS
Three Months Year
Ended Ended
March 31, Dec. 31,
1999 1998 1998
------- ------- -------
(Unaudited)
Performance Ratios:
Return on average assets (1) 0.66% 0.67% 0.65%
Return on average equity (1) 4.14 6.03 5.74
Net interest rate spread (1) 3.00 3.14 3.04
Non-interest income to average assets (1) 0.46 0.51 0.53
Non-interest expense to average assets (1) 2.66 2.68 2.68
Dividend payout ratio (1) 83.61 41.88 53.54
Asset Quality Ratios:
Non-performing loans to net loans
receivable 0.18 0.22 0.31
Non-performing assets to total assets 0.21 0.26 0.26
Allowance for loan losses to
non-performing loans 333.79 252.30 189.45
Allowance for loan losses to net
loans receivable 0.61 0.55 0.59
Capital Ratios:
Shareholder's equity to total assets 15.98 10.80 15.79
Average equity to average assets 15.88 11.06 11.26
(1) Annualized for the three months ended March 31, 1999 and 1998
Community Savings Bankshares, Inc., a Delaware-chartered stock holding company, is the parent holding company for Community Savings, F. A., 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. chartered in 1955. The Association's deposits 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 and a loan production office. |
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