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CMS Bancorp, Inc. Announces Continued Solid Financial Results for the Three Months Ended December 31, 2013

| Source: Putnam County Savings Bank

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.
  December September
  31, 2013 30, 2013
  (Dollars in thousands,
  except per share data)
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
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.
  Three Months
  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