Community Savings Bankshares, Inc. Announces Significant Increase in Earnings for Third Quarter.NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--Oct. 14, 1999-- Community Savings Bankshares, Inc. ("Bankshares" or the "Company")(Nasdaq:CMSV CMSV Collgeg of Mount Saint Vincent (Riverdale, NY) ) announced today that net income increased $440,000, or 36% for the quarter ended September September: see month. 30, 1999 to $1.7 million, or $0.17 basic earnings per share, from $1.2 million or $0.12 basic earnings per share for the quarter ended September 30, 1998. The increase reflected a $1.4 million increase in net interest income, partially offset by an $800,000 increase 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. . "Management is very pleased with the 42% increase in basic earnings per share for this quarter reflecting continued implementation of our business plan.", 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, said. Net income increased $1.0 million, or 27% for the nine months ended September 30, 1999 to $4.8 million, or $0.48 basic earnings per share, from $3.7 million or $0.37 basic earnings per share for the nine months ended September 30, 1998. The increase was primarily the result of a $3.5 million increase in net interest income, partially offset by an increase of $2.1 million in operating expense. Mr. Pittard, in announcing improved earnings, stated "We are extremely pleased by the Company's performance, both for this quarter and the year to date. Our improved operating results are continuing to reflect the implementation of our business plan to prudently pru·dent adj. 1. Wise in handling practical matters; exercising good judgment or common sense. 2. Careful in regard to one's own interests; provident. 3. Careful about one's conduct; circumspect. deploy the capital raised in the second step conversion, without an increase in high risk lending or investment activities. We continue to increase the loan portfolio while maintaining our traditional conservative loan underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards. During the first nine months, we grew our loan portfolio by $57.4 million, or 11% by emphasizing the origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real of residential and commercial real estate loans through our loan origination 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. network. As part of our plan to increase shareholder value, we successfully completed the 5% stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. of 527,444 shares at an average price of $12.40 per share on October October: see month. 4, 1999, settling the payment for 350,000 of those shares at a cost of $4.4 million by September 30, 1999. The dividend 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. at September 30, 1999 is the 20th consecutive quarterly dividend paid since Community Savings, F. A. (the "Association") initially converted to stock form in October 1994. In emphasizing the payment of regular dividends at an equivalent value to the dividends paid before the second step conversion, the Board of Directors declared a dividend for the quarter ended September 30, 1999 of $0.11 per share. The success of the Board of Directors' and management's efforts can be seen in the 20% appreciation of our stock price since the conversion at a time when many other converted institutions have seen their stock price drop below the issue price. We simultaneously reduced our 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. by replacing higher costing maturing certificates with borrowings, resulting in the improvement in both our net interest margin and our interest rate spread. During the remainder of this year, we will continue to focus on opportunities to grow our core business of retail and consumer banking." Financial highlights for Bankshares and the Association, its wholly-owned subsidiary, follow. The information for the three and nine months ended September 30, 1999 and 1998 is unaudited and subject to change. -0-
At Sept. 30, At Dec. 31, Increase
1999 1998 (Decrease)
---- ---- ----------
(Unaudited)
(Dollars in thousands)
ASSETS
Cash and cash equivalents $ 39,408 $ 117,015 $ (77,607)
Securities available for sale 147,922 95,151 52,771
Securities held to maturity 40,703 52,619 (11,916)
Loans receivable, net 595,554 538,204 57,350
Real estate owned, net 761 522 239
Other assets 43,317 40,530 2,787
----------- ----------- -----------
Total assets $ 867,665 $ 844,041 $ 23,624
=========== =========== ===========
LIABILITIES
Deposits $ 583,200 $ 594,400 $ (11,200)
Advances from the Federal
Home Loan Bank 126,085 91,920 34,165
Other borrowings 14,715 15,430 (715)
Other liabilities 16,607 9,005 7,602
----------- ----------- -----------
Total liabilities 740,607 710,755 29,852
Shareholders' equity 127,058 133,286 (6,228)
----------- -----------
Total liabilities and
shareholders' equity $ 867,665 $ 844,041 $ 23,624
=========== =========== ===========
Number of shares outstanding 10,229,317 10,548,884
=========== ===========
Book value (1) $ 13.41 $ 13.43
=========== ===========
(1) Based on 9,476,160 and 9,921,979 shares outstanding or
allocated at September 30, 1999 and December 31, 1998, respectively.
Total assets increased $23.7 million to $867.7 million at September 30, 1999 from $844.0 million at December December: see month. 31, 1998. Management continued its redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. strategy as the loan and securities portfolios (which includes both securities available for sale and held to maturity) increased $57.4 million and $40.9 million, respectively, during this period. These increases, as well as an $11.2 million decrease in net deposits were funded by a $77.6 million decrease in cash and cash equivalents as well as by a $34.2 million increase in Federal Home Loan Bank ("FHLB FHLB Federal Home Loan Bank ") advances. The $57.4 million increase in the loan portfolio represented originations of new loans and purchases totaling $191.2 million and $6.1 million, respectively, partially offset by sales and normal repayments totaling $6.0 million and $104.7 million, respectively, as the Association continued to aggressively pursue new loan originations during the period. The $191.2 million of new loan originations included $134.3 million and $48.5 million in residential and commercial real estate loan originations, respectively. The $40.9 million increase in the securities portfolio reflected $74.1 million in purchases of securities available for sale, offset in part by calls and repayments, amortization and accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the totaling $5.0 million and $28.2 million, respectively. The $74.1 million of purchases included $26.0 million of securities which were financed in leveraged transactions with FHLB advances. Deposits decreased $11.2 million to $583.2 million at September 30, 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 higher costing certificates of deposit totaling $15.3 million 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. . FHLB advances increased $34.2 million primarily due to $45.0 million in new advances used to fund securities purchases and loan originations, offset in part by $5.0 million and $5.8 million in calls and normal repayments, respectively. 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. decreased to $127.1 million at September 30, 1999 from $133.3 million at December 31, 1998. This decrease was due primarily to 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 350,000 of Bankshares' issued and outstanding common stock at a cost of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.4 million in addition to the payment of dividends aggregating $0.33 per share during the nine months. The decrease also reflected the purchase of common stock totaling $2.9 million used to fund grants in the 1995 and 1999 Recognition and Retention Plans, offset in part by net income for the nine months of $4.8 million.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended
September 30, Increase September 30, Increase
1999 1998 (Decrease) 1999 1998 (Decrease)
(Unaudited)
(Dollars in thousands)
Interest
income $ 14,742 $ 13,763 $ 979 $ 43,228 $ 40,591 $ 2,637
Interest
expense 7,311 7,741 (430) 21,553 22,397 (844)
Net
interest
income 7,431 6,022 1,409 21,675 18,194 3,481
Provision for
loan losses 193 223 (30) 710 436 274
Other
income 1,045 906 139 3,017 2,843 174
Operating
expense 5,926 5,066 860 17,229 15,093 2,136
Provision for
income taxes 679 401 278 1,965 1,759 206
Net
income $ 1,678 $ 1,238 $ 440 $ 4,788 $ 3,749 $ 1,039
Basic earnings
per
share(1) $ 0.17 $ 0.12 $ 0.48 $ 0.37
Diluted earnings
per
share(1) $ 0.16 $ 0.12 $ 0.47 $ 0.36
Basic
weighted
average
common
shares
outstanding 9,478,762 10,205,516 9,915,437 10,174,011
Diluted
weighted
average
common
shares
outstanding 10,147,797 10,471,244 10,292,895 10,462,252
(1) Represents net income divided by the weighted average shares
outstanding for the periods presented.
Net interest income increased to $7.4 million for the quarter ended September 30, 1999 from $6.0 million for the same period in 1998. Such increase reflected in large part the $70.7 million increase in average interest-earning assets to $800.2 million for the three months ended September 30, 1999 from $729.5 million for the same period in the prior year reflecting the continued deployment of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of Bankshares' conversion in December 1998. 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 4.10% for the quarter ended September 30, 1999 from 4.56% for the same period in 1998. The increase in net interest income was offset in part by a decrease in the average yield on interest-earning assets to 7.37% for the quarter ended September 30, 1999 from 7.55% for the same period in 1998 combined with a $34.2 million increase in average interest-bearing liabilities to $713.6 million for the three months ended September 30, 1999 from $679.4 million for the same period in 1998. The increase in average interest-bearing liabilities reflected $7.6 million and $26.6 million higher average balances for the quarter ended September 30, 1999 for the Association's deposit portfolio and borrowed funds, respectively, as the Association used such funds to support the continued expansion of its lending program and to purchase securities available for sale. The provision for loan losses decreased during the quarter ended September 30, 1999 to $193,000 as compared to $223,000 for the same period in 1998. The provision was higher in the 1998 period primarily due to a $25,000 specific reserve recognized during the 1998 period which was not repeated in the 1999 period. Other income increased $139,000 to $1.0 million for the quarter ended September 30, 1999 as compared to $906,000 for the same period in 1998, primarily due to increased customer fees and a net gain on real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most . Operating expense increased $860,000 for the three months ended September 30, 1999, primarily due to increases of $572,000 in employee compensation and benefits and $147,000 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. Offsetting these increases in part was a $63,000 decrease in advertising and promotion expense during the quarter ended September 30, 1999 as compared to the same period in 1998. The provision for income taxes increased $278,000 for the three months ended September 30, 1999 due to the increase in net taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. during the quarter.
SELECTED FINANCIAL RATIOS
Three Months Nine Months Year
Ended Ended Ended
Sept. 30, Sept. 30, Dec. 31,
1999 1998 1999 1998 1998
Performance Ratios:
Return on average
assets (1) 0.78% 0.63% 0.75% 0.66% 0.65%
Return on average
equity (1) 5.17 5.91 4.84 6.04 5.74
Net interest rate
spread (1) 3.27 2.99 3.18 3.08 3.04
Net interest margin (1) 3.71 3.30 3.64 3.41 3.37
Non-interest income to
average assets (1) 0.49 0.46 0.47 0.47 0.53
Non-interest expense
to average assets (1) 2.76 2.60 2.70 2.62 2.68
Dividend payout
ratio (1) 60.49 47.74 66.21 43.80 53.54
Asset Quality
Ratios (2):
Non-performing loans
to net loans
receivable 0.09 0.31 0.09 0.31 0.31
Non-performing assets
to total assets 0.15 0.30 0.15 0.30 0.26
Allowance for loan
losses to
non-performing loans 715.65 180.23 715.65 180.23 189.45
Allowance for loan
losses to net loans
receivable 0.63 0.55 0.63 0.55 0.59
Capital Ratios:
Shareholder's equity
to total assets 14.64 10.69 14.64 10.69 15.79
Average equity to
average assets 15.10 10.74 15.51 10.91 11.26
(1) Annualized for the three and nine months ended September 30,
1999 and 1998
(2) End of period ratios
Community Savings Bankshares, Inc., a Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. , 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 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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