Community Savings announces increase in third quarter earnings.NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--July 15, 1996--Community Savings, F.A. (Nasdaq:CMSV CMSV Collgeg of Mount Saint Vincent (Riverdale, NY) ) announced Monday Monday: see week. that net income for the third quarter ended June June: see month. 30, 1996 increased 30.0% to $1.8 million, or $.36 per share, compared to $1.4 million for the quarter ended June 30, 1995. The increase in net income was due to an increase in net interest income of $797,000, together with decreases in the provision for income taxes of $1.2 million and in the provision for loan losses of $118,000, offset by a decrease in other income of $426,000 and an 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. of $1.3 million. The Association's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets for the three months ended June 30, 1996 was 1.14%. Net income for the nine months ended June 30, 1996 increased 19.7% to $4.1 million, or $.84 per share, compared to $3.4 million for the same period in 1995 due to an increase in net interest income of $856,000, combined with decreases in the provision for loan losses of $231,000 and the provision for income taxes of $1.2 million, partially offset by an increase in operating expense of $1.5 million and a decrease in other income of $57,000. Financial highlights for Community Savings follow. The information for 1996 is unaudited and subject to change after the annual audit. -0-
COMMUNITY SAVINGS, F.A.
SELECTED CONSOLIDATED FINANCIAL DATA
At At
June 30, Sept. 30,
1996 1995 Increase
(Unaudited) (Audited) (Decrease)
(In thousands)
ASSETS
Cash and cash equivalents $ 31,637 $ 42,497 $ (10,860)
Securities available for sale 125,702 27,028 98,674
Investment securities 22,595 59,679 (37,084)
Mortgage-backed and related
securities 56,639 77,499 (20,860)
Loans receivable, net 359,007 329,442 29,565
Real estate owned, net 1,579 1,910 (331)
Other assets 28,886 28,951 (65)
Total assets $626,045 $567,006 $ 59,039
LIABILITIES Deposits $495,135 $437,376 $ 57,759 Borrowings 39,728 39,101 627 Other liabilities 16,116 17,681 (1,565) Total liabilities 550,979 494,158 56,821 Shareholders' equity 75,066 72,848 2,218 Total liabilities and equity $626,045 $567,006 $ 59,039
Cash and cash equivalents decreased $10.9 million to
$31.6 million at June 30, 1996 from $42.5 million at Sept. 30, 1995,
as the Association increased its investment in loans and securities.
The securities portfolio (which includes securities available for
sale, investment securities, and mortgage-backed and related
securities) experienced a net increase of $40.7 million resulting
from purchases of $68.7 million, offset by maturities, calls of
securities classified as available for sale, and repayments of
$28.0 million. Loans receivable increased by $29.6 million to
$359.0 million at June 30, 1996 from $329.4 million at Sept. 30, 1995
due to originations of $89.7 million and purchases of $10.9 million,
offset by repayments and other adjustments of $71.0 million. Total
deposits increased by $57.8 million to $495.1 million at June 30,
1996 from $437.4 million at Sept. 30, 1995, due primarily to the
addition of $32.8 million of 13-month certificates of deposit, an
increase in two-year public fund deposits of $23.0 million, as well
as a net seasonal increase in deposits of $2.0 million.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
June 30, June 30,
Increase Increase
1996 1995 (Decrease) 1996 1995 (Decrease)
(Unaudited) (Unaudited)
(Dollars in thousands)
Interest
income $11,091 $ 9,657 $ 1,434 $32,043 $27,605 $ 4,438
Interest
expense 5,724 5,087 637 16,907 13,325 3,582
Net interest
income 5,367 4,570 797 15,136 14,280 856
Provision for
loan losses 38 156 (118) 69 300 (231)
Other income 370 796 (426) 2,417 2,474 (57)
Operating
expense 4,277 3,016 1,261 12,457 10,915 1,542
Provision
(benefit)
for income
taxes (361) 822 (1,183) 925 2,113 (1,188)
Net income $1,783 $1,372 $411 $4,102 $3,426 $676
Primary and
fully
dilutive
earnings
per share $0.36 $0.28 $0.84 $0.71
Net interest income increased to $5.4 million for the quarter
ended June 30, 1996 from $4.6 million for the quarter ended June 30,
1995. This increase was primarily the result of an $80.0 million
increase in average interest-earning assets to $592.4 million for the
three months ended June 30, 1996 from $512.4 million for the same
period in 1995, as well as an increase in the average interest rate
spread of .08% to 3.23% for the quarter ended June 30, 1996 from
3.15% for the same period in 1995. This increase was offset in part
by a $74.6 million increase in average interest-bearing liabilities
to $537.8 million for the three months ended June 30, 1996 from
$463.2 million for the same period in 1995. Provision for loan
losses decreased by $118,000 to $38,000 for the three months ended
June 30, 1996 from $156,000 for the same period in 1995. The decline
in the provision is attributable to management's assessment that the
allowance for loan losses which totaled $2.3 million at June 30,
1996, was adequate. Other income decreased by $426,000 to $370,000
for the three months ended June 30, 1996 from $796,000 for the same
period in 1995, due to the recognition of a specific reserve of
$200,000 on certain collateral currently the subject of litigation,
as well as a $218,000 loss on the sale of a loan participation. The
$103,000 decline in the net return from a subsidiary real estate
venture was due to the winding down of the project. Operating
expense increased $1.3 million to $4.3 million for the three months
ended June 30, 1996 from $3.0 million for the same period in 1995
primarily due to a net gain of $953,000 on real estate owned during
the three months ended June 30, 1995 that was not repeated during the
quarter ended June 30, 1996. In addition, advertising and promotion
and miscellaneous expenses increased $106,000 and $139,000,
respectively, for the three months ended June 30, 1996. The
Association recognized a tax benefit of $361,000 for the three months
ended June 30, 1996 as compared to a provision for income taxes of
$822,000 for the same period in 1995 due to the reversal of a prior
provision which in management's opinion was no longer required.
SELECTED FINANCIAL RATIOS
Three Months Nine Months Year
Ended Ended Ended
June 30, June 30, Sept. 30,
1996 1995 1996 1995 1995
Return on average assets (1) 1.14% 1.00% 0.91% 0.85% 0.84% Return on average equity (1) 9.55% 7.66% 7.36% 6.69% 6.60% Interest rate spread (1) 3.23% 3.15% 3.14% 3.48% 3.40% Net yield on average interest-earning assets (1) 3.62% 3.57% 3.56% 3.82% 3.78% Equity to assets at period end 11.99% 12.93% 11.99% 12.93% 12.85% Non-interest income to average assets (1) 0.24% 0.58% 0.53% 0.61% 0.62% Non-interest expense to average assets (1) 2.72% 2.19% 2.75% 2.70% 2.74% Non-performing loans to total loans 0.18% 0.38% 0.18% 0.38% 0.20% Non-performing assets to total assets 0.42% 0.54% 0.42% 0.54% 0.45% Allowance for loan losses to non-performing loans at period end 345.18% 294.22% 345.18% 294.22% 527.49% Allowance for loan losses to total loans at period end 0.64% 1.11% 0.64% 1.11% 1.06% Average interest-earning assets to average interest-bearing liabilities 110.15% 110.62% 110.48% 109.62% 110.09%
(1) Ratio is annualized for the three and nine months ended
June 30, 1996 and 1995.
Chartered in 1955, Community Savings 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. headquartered in North Palm Beach, 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 Corp. The Association has 18 full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. offices located throughout northern Palm Beach, Martin and St. Lucie St. Lucie may refer to:
Visit us on the World Wide Web at: http://www.communitysavings.com. -0- NOTE TO EDITORS: In the World Wide Web address noted in this news release, there is a double slash between http: and www.communitysavings.com. These symbols may not appear properly in some systems. CONTACT: Community Savings, F.A., North Palm Beach 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 or Larry Lar´ry n. 1. Same as Lorry, or Lorrie. J. Baker, Treasurer TREASURER. An officer entrusted with the treasures or money either of a private individual, a corporation, a company, or a state. 2. It is his duty to use ordinary diligence in the performance of his office, and to account with those whose money he has. , 561/881-2212 |
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