WHITE PLAINS, N.Y., Feb. 12, 2014 (GLOBE NEWSWIRE) -- CMS Bancorp, Inc. (Nasdaq: CMSB ) (the "Company"), the parent of CMS Bank (the "Bank"), announced net income of $211,000 for the three months ended December 31, 2013, compared to net income of $182,000 for the three months ended December 31, 2012. Net income attributable to common shareholders, after the dividend on preferred stock, was $0.11 per share in each period.
Commenting on these positive results, President and Chief Executive Officer John Ritacco stated that "the improvement was primarily due to lower interest expense and lower non-interest expense in the three months ended December 31, 2013 compared to the three months ended December 31, 2012, net of lower gain on sale of loans and lower interest income in the three months ended December 31, 2013 compared to the three months ended December 31, 2012." With respect to the impact of declining interest rates, Mr. Ritacco noted that declining rates reduced net interest income by $127,000 in the three months ended December 31, 2013 compared to 2012, while changes in the mix and volume of interest bearing assets and liabilities essentially offset those declines.
Commenting on the other financial statement components, Mr. Ritacco reported that "the Bank continues to make progress with credit quality of the loan portfolio. Impaired loans and non-accrual loans were $7.4 million and $4.1 million, respectively, at December 31, 2013. At their highest levels impaired loans were $11.4 million as of September 30, 2012 and non-accrual loans were $7.4 million as of March 31, 2013."
Mr. Ritacco also commented that "the Bank continues to maintain strong liquidity and capital positions."
Forward-Looking Statements
This press release may include forward-looking statements based on current management expectations. Readers should not place undue reliance on any such forward-looking statements contained in this press release, which speak only as of the date made. There can be no assurance that we will grow as anticipated, will have consistent future earnings, our interest expense for the remainder of the fiscal year will be reduced or that the Bank's interest margin will improve. Factors that could cause actual results to differ from those expressed or implied by such forward-looking statements include, but are not limited to: (i) changes in general economic conditions, including interest rates; (ii) changes in conditions in the real estate market or the local economy; (iii) competition among providers of financial services; (iv) changes in the quality or composition of loan and investment portfolios of the Bank; (v) changes in accounting and regulatory guidance applicable to banks; and (vi) price levels and conditions in the public securities markets generally. Additional factors that could cause actual results to differ from those expressed or implied in the forward looking statements are described in the cautionary language included under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2013, and Quarterly Report on Form 10-Q for the quarter ended December 31, 2013, and other filings made with the U.S. Securities and Exchange Commission. These factors could affect the Company's financial performance and could cause the actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. Neither the Company nor the Bank undertake and specifically decline any obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
| CMS Bancorp, Inc. | ||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
| December | September | |
| 31, 2013 | 30, 2013 | |
| (Dollars in thousands, | ||
| except per share data) | ||
| ASSETS | ||
| Cash and amounts due from depository institutions | $ 1,386 | $ 2,219 |
| Interest-bearing deposits | 1,968 | 258 |
| Total cash and cash equivalents | 3,354 | 2,477 |
| Securities available for sale | 39,389 | 40,420 |
| Loans held for sale | — | 337 |
| Loans receivable, net of allowance for loan losses of $646 and $923, respectively | 212,882 | 207,996 |
| Premises and equipment | 2,711 | 2,742 |
| Federal Home Loan Bank of New York stock, at cost | 1,257 | 1,262 |
| Accrued interest receivable | 1,002 | 954 |
| Other assets | 2,124 | 2,067 |
| Total assets | $ 262,719 | $ 258,255 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Liabilities: | ||
| Deposits | $ 216,701 | $ 212,312 |
| Advances from Federal Home Loan Bank of New York | 19,784 | 19,889 |
| Advance payments by borrowers for taxes and insurance | 1,493 | 1,221 |
| Other liabilities | 1,977 | 2,098 |
| Total liabilities | 239,955 | 235,520 |
| Commitments and Contingencies | ||
| Stockholders' equity: | ||
| Preferred stock, $.01 par value, 1,000,000 shares authorized, 1,500 shares issued and outstanding (liquidation preference value $1,000 per share) | — | — |
| Common stock, $.01 par value, authorized shares: 7,000,000; shares issued: 2,055,165; shares outstanding: 1,862,803 | 21 | 21 |
| Additional paid-in capital | 20,300 | 20,283 |
| Retained earnings | 7,195 | 7,007 |
| Treasury stock, 192,362 shares | (1,660) | (1,660) |
| Unearned Employee Stock Ownership Plan ("ESOP") shares | (1,274) | (1,288) |
| Accumulated other comprehensive (loss) | (1,818) | (1,628) |
| Total stockholders' equity | 22,764 | 22,735 |
| Total liabilities and stockholders' equity | $ 262,719 | $ 258,255 |
| CMS Bancorp, Inc. | ||
| CONSOLIDATED STATEMENTS OF INCOME | ||
| Three Months | ||
| Ended | ||
| December 31, | ||
| 2013 | 2012 | |
| (Dollars in thousands, except per share data) | ||
| Interest income: | ||
| Loans | $ 2,587 | $ 2,577 |
| Securities | 182 | 227 |
| Other interest-earning assets | 16 | 26 |
| Total interest income | 2,785 | 2,830 |
| Interest expense: | ||
| Deposits | 359 | 379 |
| Mortgage escrow funds | 10 | 16 |
| Borrowings, short term | 5 | 18 |
| Borrowings, long term | 172 | 174 |
| Total interest expense | 546 | 587 |
| Net interest income | 2,239 | 2,243 |
| Provision for loan losses | 100 | 100 |
| Net interest income after provision for loan losses | 2,139 | 2,143 |
| Non-interest income: | ||
| Fees and service charges | 41 | 41 |
| Net gain on sale of loans | 40 | 140 |
| Other | 3 | 2 |
| Total non-interest income | 84 | 183 |
| Non-interest expense: | ||
| Salaries and employee benefits | 936 | 1,111 |
| Net occupancy | 333 | 309 |
| Equipment | 194 | 195 |
| Professional fees | 140 | 141 |
| Advertising | 14 | 8 |
| Federal insurance premiums | 54 | 54 |
| Directors' fees | 47 | 44 |
| Other | 160 | 165 |
| Total non-interest expense | 1,878 | 2,027 |
| Income before income taxes | 345 | 299 |
| Income tax | 134 | 117 |
| Net income | 211 | 182 |
| Preferred stock dividends | 23 | — |
| Net income attributable to common shareholders | $ 188 | $ 182 |
| Net income per common share – basic and diluted | $ 0.11 | $ 0.11 |
| Weighted average number of common shares outstanding: | ||
| Basic | 1,735,382 | 1,729,902 |
| Diluted | 1,736,370 | 1,729,902 |
Stephen E. Dowd Senior Vice President & Chief Financial Officer 914-422-2700
