WHITE PLAINS, N.Y., Aug. 12, 2013 (GLOBE NEWSWIRE) -- CMS Bancorp, Inc. (Nasdaq:CMSB) (the "Company"), the parent of CMS Bank (the "Bank"), announced net income available to common shareholders of $491,000 or $0.28 per share, for the three months ended June 30, 2013, compared to a net loss of $150,000, or $0.09 per share, for the three months ended June 30, 2012. For the nine months ended June 30, 2013 net income available to common shareholders was $792,000 or $0.46 per share, compared to a net loss of $390,000, or $0.23 per share, for the nine months ended June 30, 2012.
Commenting on these positive results, President and Chief Executive Officer John Ritacco stated that "the earnings improvement was due to the continued growth and diversification in the loan portfolio, lower interest costs, lower provisions for loan losses and cost containment measures undertaken by the Bank's management." In addition, the Company's results were favorably impacted by a $300,000 reimbursement from Customers Bancorp. Inc ("Customers") for prior period merger related expenses, which was paid by Customers in the three month period ended June 30, 2013 pursuant to the terms of an Amendment to the Agreement and Plan of Merger dated August 10, 2012, by and between the Company and Customers (the "Amendment"). A discussion regarding additional key terms agreed to by the parties under the Amendment is available in the Company's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on April 24, 2013, available at www.sec.gov.
Mr. Ritacco reported that "from September 30, 2012 to June 30, 2013, the Company continued to experience moderate growth and diversity in its loan portfolio mix, especially in the areas of in the multi-family, non-residential and commercial sectors. During this period, the loan portfolio grew by 4.0% from $201.5 million at September 30, 2012 to $209.5 million at June 30, 2013, an increase of $8.0 million. Equally as important, during the nine month period, impaired loans declined from $11.4 million to $7.8 million, substandard loans declined from $8.8 million to $4.2 million and non-accrual loans declined from $6.2 million to $3.9 million as of September 30, 2012 and June 30, 2013, respectively."
Commenting on the other financial statement components, Mr. Ritacco reported that "we were able to increase our net interest income by maximizing the yield on interest earning assets, to the extent possible, and minimizing the cost of our interest bearing liabilities through the consistent oversight of our liquidity and cash flow position. Improving economic trends, although generally still slow, have enabled the Bank to moderate its provisions for loan losses and our non-interest expense has been held in check by the Company's non-interest expense cost containment programs."
Mr. Ritacco commented that "the Bank continues to maintain a strong liquidity position and has added to a strong capital position through earnings and the Preferred Stock investment made by Customers Bank."
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, 2012, and Quarterly Report on Form 10-Q for the quarter and nine months ended June 30, 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 | ||
| (Unaudited) | ||
| June 30, 2013 | September 30, 2012 | |
| (Dollars in thousands, | ||
| except per share data) | ||
| ASSETS | ||
| Cash and amounts due from depository institutions | $792 | $1,340 |
| Interest-bearing deposits | 3,451 | 501 |
| Total cash and cash equivalents | 4,243 | 1,841 |
| Securities available for sale | 41,220 | 48,361 |
| Loans held for sale | — | 2,426 |
| Loans receivable, net of allowance for loan losses of $830 and $967, respectively | 209,508 | 201,462 |
| Other real estate owned | 518 | — |
| Premises and equipment | 2,818 | 3,054 |
| Federal Home Loan Bank of New York stock, at cost | 1,309 | 2,032 |
| Accrued interest receivable | 1,056 | 1,006 |
| Other assets | 1,818 | 4,484 |
| Total assets | $262,490 | $264,666 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Liabilities: | ||
| Deposits | $215,417 | $203,516 |
| Advances from Federal Home Loan Bank of New York | 20,949 | 37,130 |
| Advance payments by borrowers for taxes and insurance | 1,791 | 844 |
| Other liabilities | 1,154 | 1,218 |
| Total liabilities | 239,311 | 242,708 |
| Stockholders' equity: | ||
| Preferred stock, $.01 par value, 1,000,000 shares authorized, 1,500 shares issued and outstanding at June 30, 2013 (liquidation preference value $1,000 per share) | 1 | — |
| 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 | 20,263 | 18,728 |
| Retained earnings | 6,893 | 6,101 |
| Treasury stock, 192,362 shares | (1,660) | (1,660) |
| Unearned Employee Stock Ownership Plan ("ESOP") shares | (1,301) | (1,343) |
| Accumulated other comprehensive income (loss) | (1,038) | 111 |
| Total stockholders' equity | 23,179 | 21,958 |
| Total liabilities and stockholders' equity | $262,490 | $264,666 |
| CMS Bancorp, Inc. | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| Three Months | Nine Months | |||
| Ended | Ended | |||
| June 30, | June 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| (Dollars in thousands, except per share data) | ||||
| Interest income: | ||||
| Loans | $2,620 | $2,504 | $7,792 | $7,599 |
| Securities | 196 | 259 | 647 | 739 |
| Other interest-earning assets | 20 | 20 | 69 | 82 |
| Total interest income | 2,836 | 2,783 | 8,508 | 8,420 |
| Interest expense: | ||||
| Deposits | 364 | 483 | 1,110 | 1,507 |
| Mortgage escrow funds | 12 | 8 | 40 | 24 |
| Borrowings, short term | 2 | 6 | 31 | 11 |
| Borrowings, long term | 177 | 175 | 524 | 854 |
| Total interest expense | 555 | 672 | 1,705 | 2,396 |
| Net interest income | 2,281 | 2,111 | 6,803 | 6,024 |
| Provision for loan losses | 25 | 275 | 393 | 640 |
| Net interest income after provision for loan losses | 2,256 | 1,836 | 6,410 | 5,384 |
| Non-interest income: | ||||
| Fees and service charges | 40 | 42 | 124 | 128 |
| Net gain on sale of loans | 52 | 36 | 229 | 114 |
| Net gain on sale of securities | — | 243 | — | 782 |
| Other | 6 | 6 | 10 | 24 |
| Total non-interest income | 98 | 327 | 363 | 1,048 |
| Non-interest expense: | ||||
| Salaries and employee benefits | 981 | 1,144 | 3,061 | 3,310 |
| Net occupancy | 307 | 317 | 940 | 914 |
| Equipment | 189 | 187 | 575 | 568 |
| Professional fees | (97) | 163 | 161 | 458 |
| Advertising | 6 | 15 | 21 | 60 |
| Federal insurance premiums | 57 | 54 | 167 | 155 |
| Directors' fees | 57 | 98 | 159 | 223 |
| Other insurance | 22 | 22 | 65 | 65 |
| Bank charges | 7 | 7 | 22 | 30 |
| Penalty assessed on early repayment of borrowings | — | 133 | — | 614 |
| Charter conversion | — | 89 | 5 | 181 |
| Other | 144 | 160 | 430 | 454 |
| Total non-interest expense | 1,673 | 2,389 | 5,606 | 7,032 |
| Income (loss) before income taxes | 681 | (226) | 1,167 | (600) |
| Income tax expense (benefit) | 180 | (76) | 365 | (210) |
| Net income (loss) | $501 | $ (150) | $802 | $ (390) |
| Preferred stock dividends | 10 | — | 10 | — |
| Net income available to common stockholders | $491 | $ (150) | $792 | $ (390) |
| Net income (loss) per common share: | ||||
| Basic and diluted | $0.28 | $ (0.09) | $0.46 | $ (0.23) |
| Weighted average number of common shares outstanding: | ||||
| Basic | 1,732,642 | 1,721,965 | 1,731,267 | 1,720,590 |
| Diluted | 1,733,470 | 1,721,965 | 1,731,791 | 1,720,590 |