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CFS Bancorp, Inc. Announces Financial Results for the Fourth Quarter 2008
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| CITZ | 3.56 | -0.08 |
MUNSTER, IN--(MARKET WIRE)--Jan 29, 2009 -- CFS Bancorp, Inc. (NasdaqGM:CITZ - News) (the Company), the parent of Citizens Financial Bank (the Bank), today reported a net loss of $9.7 million for the fourth quarter of 2008, or $(0.95) per share, as a result of a $16.9 million provision for losses on loans, a $1.2 million goodwill impairment and a $282,000 other-than-temporary impairment charge related to its investment in Fannie Mae and Freddie Mac preferred stock. These charges in total reduced net income by $11.5 million and reduced diluted earnings per share by $1.11. Net income for the fourth quarter of 2007 totaled $2.0 million with diluted earnings per share of $0.19.
For the twelve months ended December 31, 2008, the Company's net loss was $11.3 million which resulted in a loss per share of $1.10 compared to net income of $7.5 million and diluted earnings per share of $0.69 for the 2007 fiscal year. During 2008, the Company's financial results were affected by provisions for losses on loans totaling $26.3 million, other-than-temporary impairments on its investments in Fannie Mae and Freddie Mac preferred stock totaling $4.3 million and a goodwill impairment of $1.2 million. Combined, these charges reduced year to date net income by $19.9 million and reduced diluted earnings per share by $1.90.
The Company's results for the fourth quarter of 2008 also included the following:
-- risk-based capital ratio of 13.21% remained above the required ratio
to be considered well-capitalized of 10.00% and
-- gross loans increased $7.7 million or 1.0% from September 30, 2008
primarily due to increases in commercial and industrial loans.Chairman's Comments
"This has been a quarter and year that was heavily influenced by the economy," said Thomas F. Prisby, Chairman and CEO. "Declining market values and restricted cash flows have affected all segments of the loan portfolio especially our construction and land development portfolio. We have always been diligent in the valuation of our problem assets and the fourth quarter of 2008 was no exception. Based upon new appraisals and discussions with borrowers to obtain current cash flows, we created our own cash analyses and recorded charge-offs on collateral dependent loans or established impairment reserves we believe to be appropriate given current economic conditions. We continue to analyze all segments of our loan portfolio and reduce our existing credit risk by diversifying away from construction and land development loans, hospitality loans, and loan syndications and purchased participations."
Mr. Prisby continued, "Our core operations are strong and our risk-based capital ratio is at 13.21%, which is in excess of the regulatory capital definition for 'well-capitalized' at 10%. Our expectations for 2009 are positive. We intend to maintain a strong liquidity level and target capital ratios in excess of 'well-capitalized.' An improved performance management program in 2009 will continue to set high performance expectations for deposit and loan growth. What we cannot control is the economic pressures facing our industry, communities and customers. We intend to cooperatively work with all borrowers to help ease the burdens 2009 may bring."
Net Interest Income
The net interest margin was 3.34% for the fourth quarter of 2008 compared to 3.47% for the third quarter of 2008 and 3.06% for the fourth quarter of 2007. The Company's net interest income decreased to $8.7 million for the fourth quarter of 2008 compared to $8.9 million for the third quarter of 2008 and increased compared to $8.4 million for the fourth quarter of 2007. The net interest income for the fourth quarter of 2008 was negatively affected by lower interest rates on the Company's interest-earning assets due to lower market rates coupled with an increase in non-performing loans.
Interest income decreased 3.7% to $13.8 million for the fourth quarter of 2008 compared to $14.4 million for the third quarter of 2008 and $17.2 million for the fourth quarter of 2007. The decrease from the third quarter of 2008 was primarily related to the increase in non-performing loans by $6.9 million coupled with a decrease in the weighted-average yield earned on other interest-earning assets. The decrease from the fourth quarter of 2007 was a combination of a 4.6% decrease in the average balance of interest-earning assets and a 99 basis point decrease in the weighted-average yield earned on interest-earning assets resulting from lower interest rates during 2008.
Interest expense decreased 6.3% to $5.1 million for the fourth quarter of 2008 from $5.5 million for the third quarter of 2008 and 42.2% from $8.8 million for the fourth quarter of 2007. The decrease from the third quarter of 2008 was primarily related to a 20 basis point decrease in the Company's weighted-average cost of interest-bearing liabilities. The Company's interest expense on deposits and short-term borrowings was positively affected by decreases in interest rates during 2008. The decrease from the fourth quarter of 2007 was primarily the result of a 3.6% decrease in the average balances of interest-bearing liabilities and a 147 basis point decrease in the Company's weighted-average cost of interest-bearing liabilities resulting from lower interest rates and a $645,000 decrease in the amortization of the deferred premium on the early extinguishment of Federal Home Loan Bank (FHLB) debt from the fourth quarter of 2007.
The Company's cost of borrowings decreased to 3.27% for the fourth quarter of 2008 compared to 4.44% for the third quarter of 2008 and 6.23% for the fourth quarter of 2007. The cost of borrowings was a result of lower rates on the repricing of the Company's FHLB debt during 2008 and decreased amortization of the deferred premium on the early extinguishment of FHLB debt which is included in total interest expense on borrowings. The premium amortization adversely affected the Company's net interest margin by 8 basis points, 11 basis points and 31 basis points, respectively, for the fourth quarter of 2008, the third quarter of 2008 and the fourth quarter of 2007. The Company's interest expense on borrowings is detailed in the tables below for the periods indicated.
Change from
Three Months Ended December 31, 2007
----------------------------- to December 31,
December September December 2008
31, 30, 31, -----------------
2008 2008 2007 $ %
--------- --------- --------- -------- -------
(Dollars in thousands)
Interest expense on
short-term borrowings
at contractual rates $ 63 $ 129 $ 156 $ (93) (59.6)%
Interest expense on FHLB
borrowings at contractual
rates 1,047 1,000 1,445 (398) (27.5)
Amortization of deferred
premium 206 270 851 (645) (75.8)
--------- --------- --------- --------
Total interest expense on
borrowings $ 1,316 $ 1,399 $ 2,452 $ (1,136) (46.3)
========= ========= ========= ========The interest expense related to the premium amortization on the early extinguishment of FHLB debt continues to have a smaller impact on the Company's weighted-average cost of interest-bearing liabilities and is expected to be $72,000, $61,000, $24,000 and $17,000 before taxes in the quarters ending March 31, June 30, September 30, and December 31, 2009, respectively. The premium amortization will be fully recognized as of December 31, 2009.
Non-Interest Income and Non-Interest Expense
The Company's non-interest income for the fourth quarter of 2008 was negatively affected by a $282,000 other-than-temporary impairment equal to the remaining book value of the Company's investments in Fannie Mae and Freddie Mac preferred stock. In addition, the Company's income from its investment in Bank-owned life insurance decreased by $177,000 from the third quarter of 2008 as a result of the underwriter's other-than-temporary impairments on certain investments underlying the policy. Service charges and other fees decreased 8.2% from September 30, 2008 primarily due to a decrease in the volume of non-sufficient funds items. Service charges and other fees decreased from December 31, 2007 due to reduced volume of returned items coupled with a decrease in total credit enhancement fees.
Non-interest expense for the fourth quarter of 2008 increased to $9.8 million compared to $8.7 million for the third quarter of 2008 and $8.1 million for the fourth quarter of 2007. Compensation and employee benefits increased during the fourth quarter of 2008 primarily due to a $106,000 increase in compensation and mandatory benefits related to an increase in the number of employees during the fourth quarter. During the fourth quarter of 2008, Citizens Financial Bank made a principal prepayment of $2.8 million on a loan relating to its Employee Stock Ownership Plan (ESOP). The additional principal payment was made to satisfy the 4.1% minimum funding requirement the Company agreed to upon modification of the ESOP loan in March 2007 and to minimize the impact of this funding requirement in 2009. As a result of the principal payment, the Company's ESOP expense during the fourth quarter of 2008 increased $539,000 from the third quarter of 2008. Partially offsetting the above increase, the decrease in the Company's stock price at December 31, 2008 resulted in a $713,000 decrease in compensation expense related to the Rabbi Trust deferred compensation plans relating to the quarterly revaluation of the Company's common stock held in these plans. Pension expense decreased during the fourth quarter of 2008 by $388,000 based on information the Company received from its plan administrator with respect to its annual funding requirements.
Net occupancy expense decreased from the third quarter of 2008 due to a reduction in general maintenance on the Bank's office locations as well as costs involved when the Bank's Lending Operations Department vacated leased space in September 2008 and moved into existing Bank-owned premises. Furniture and equipment expense increased from the third quarter of 2008 due to software costs. Professional fees increased primarily due to legal services relating to the review of the recent programs initiated by the U.S. Government and other general corporate matters. Other general and administrative expenses increased primarily due to a $1.2 million goodwill impairment as a result of the Company's year-end impairment analysis required under Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets.
The Company's efficiency ratio for the fourth quarter of 2008 was 91.3% compared to 107.7% for the third quarter of 2008 and 68.83% for the fourth quarter of 2007. The Company's efficiency ratio for the fourth quarter of 2008 was negatively affected by the impairment of Fannie Mae and Freddie Mac preferred stock and the goodwill impairment as previously discussed. The Company's core efficiency ratios were 76.9%, 73.6%, and 67.0%, respectively, for the fourth quarter of 2008, the third quarter of 2008 and the fourth quarter of 2007. The core efficiency ratio was negatively affected by the increased non-interest expense coupled with lower amortization of the deferred premium on the early extinguishment of debt when compared to the prior periods. The efficiency ratio and the core efficiency ratio calculations are presented in the last table of this press release.
Management has historically used an efficiency ratio that is a non-GAAP financial measure of operating expense control and operating efficiency. The efficiency ratio is typically defined as the ratio of non-interest expense to the sum of non-interest income and net interest income. Many financial institutions, in calculating the efficiency ratio, adjust non-interest income (as calculated under GAAP) to exclude certain component elements, such as gains or losses on sales of securities and assets. Management follows this practice to calculate our core efficiency ratio and utilizes this non-GAAP measure in its analysis of the Company's performance. The core efficiency ratio is different from the GAAP-based efficiency ratio. The GAAP-based measure is calculated using non-interest expense, net interest income and non-interest income as presented on the consolidated statements of income.
The Company's core efficiency ratio is calculated as non-interest expense less goodwill impairment divided by the sum of net interest income, excluding the deferred premium amortization related to the early extinguishment of debt, and non-interest income, adjusted for gains or losses on the sale of securities and other assets. Management believes that the core efficiency ratio enhances investors' understanding of the Company's business and performance. The measure is also believed to be useful in understanding the Company's performance trends and to facilitate comparisons with the performance of others in the financial services industry. Management further believes the presentation of the core efficiency ratio provides useful supplemental information, a clearer understanding of the Company's financial performance, and better reflects the Company's core operating activities.
The risks associated with utilizing operating measures (such as the efficiency ratio) are that various persons might disagree as to the appropriateness of items included or excluded in these measures and that other companies might calculate these measures differently. Management of the Company compensates for these limitations by providing detailed reconciliations between GAAP information and its core efficiency ratio within the last table of this press release; however, these disclosures should not be considered as an alternative to GAAP.
Asset Quality
The Company's provision for losses on loans was $16.9 million for the fourth quarter of 2008 compared to $1.4 million for the third quarter of 2008 and $1.1 million for the fourth quarter of 2007. The increase in the fourth quarter 2008 provision reflects reduced collateral valuations on non-performing loans as well as a $1.5 million increase in general reserves. During the fourth quarter of 2008, net charge-offs totaled $10.0 million. These net charge-offs included partial charge-offs of $8.8 million related to six construction and land development loans that totaled $24.3 million prior to the charge-offs and $842,000 related to five lending relationships collateralized by commercial real estate that totaled $5.9 million. Of the total net charge-offs during the fourth quarter of 2008, $8.5 million related to loan syndications and purchased participations. In addition, the Company established impairment reserves of $5.5 million on three hospitality loans totaling $17.7 million.
The Company's allowance for losses on loans was $15.6 million at December 31, 2008 and $8.0 million at December 31, 2007. The Company's non-performing loans increased $25.1 million to $54.7 million from December 2007 primarily as a result of an $18.8 million increase in non-performing non-owner occupied commercial real estate loans and a $4.5 million increase in non-performing construction and land development loans. The Company's non-performing loans at December 31, 2008 included $21.3 million non-performing syndication loans and participations that the Bank purchased prior to 2008 and that relate to seven borrowers. Non-performing commercial construction and land development loans represented 35.3% of total non-performing assets at December 31, 2008.
The ratio of allowance for losses on loans to total loans increased to 2.07% at December 31, 2008 from 1.01% at December 31, 2007 primarily as a result of the increased provision for losses on loans during 2008 coupled with a decrease in the outstanding balance of the Company's loan receivables. The ratio of allowance for losses on loans to total non-performing loans was 28.44% and 27.11%, respectively at December 31, 2008 and December 31, 2007. When management evaluates a non-performing collateral dependent loan and identifies a collateral shortfall, management will charge-off the collateral shortfall. As a result, the Company is not required to maintain an allowance for losses on loans on these loans as the loan balance has already been written down to its net realizable value (fair value less estimated costs to sell the collateral.) The above ratios have been negatively affected by partial charge-offs of $16.8 million on $26.0 million of collateral dependent non-performing loans through December 31, 2008 and impairment reserves totaling $5.9 million on other non-performing loans at December 31, 2008.
The Company maintains the allowance for losses on loans at a level that management believes is sufficient to absorb credit losses inherent in the loan portfolio. The allowance for losses on loans represents management's estimate of inherent losses existing in the loan portfolio that are both probable and reasonable to estimate at each balance sheet date and is based on its review of available and relevant information. Management believes that at December 31, 2008 the allowance for losses on loans was adequate based on its review of historical loss experience, levels of delinquencies, economic conditions and the review of relevant and available information for specific loans.
Balance Sheet
At December 31, 2008, the Company's total assets were $1.12 billion compared to $1.15 billion at December 31, 2007.
The Company's loans receivable decreased 5.4% to $750.0 million at December 31, 2008 from $793.1 million at December 31, 2007 primarily due to a $46.6 million, or 39.7%, decrease in commercial construction and land development loans as the Company continues to reduce its exposure in this segment of the loan portfolio.
Securities available-for-sale totaled $251.3 million at December 31, 2008 compared to $224.6 million at December 31, 2007. During the first quarter of 2008, the Company took advantage of a steepening yield curve and market imbalances by borrowing $30.0 million and investing the funds in higher yielding securities.
Deposits decreased to $824.1 million at December 31, 2008 from $863.3 million at December 31, 2007. The decrease was primarily a result of a $21.7 million decrease in non-municipal certificates of deposit and a $13.7 million decrease in non-municipal core deposits. Tightening liquidity in the financial services sector has resulted in increased interest rates paid on certificates of deposit and money market accounts and made balances in these types of accounts more vulnerable to above market rates paid by institutions facing liquidity issues. The Company continues to be disciplined in pricing these deposits. The Company's deposits consisted of the following as of the dates indicated:
December 31, December 31,
2008 2007
------------- -------------
(Dollars in thousands)
Core deposits $ 409,184 $ 422,880
Certificates of deposit 356,227 377,929
------------- -------------
Subtotal non-municipal deposits 765,411 800,809
------------- -------------
Municipal core deposits 39,221 45,660
Municipal certificates of deposit 19,465 16,803
------------- -------------
Subtotal municipal deposits 58,686 62,463
------------- -------------
Total deposits $ 824,097 $ 863,272
============= =============The Company's borrowed money increased to $172.9 million at December 31, 2008 from $135.5 million at December 31, 2007. The Company's borrowed money consisted of the following as of the dates indicated:
December 31, December 31,
2008 2007
------------ ------------
(Dollars in thousands)
Short-term variable-rate borrowings and
repurchase agreements $ 28,312 $ 24,014
Gross FHLB borrowings 144,799 113,072
Unamortized deferred premium (174) (1,627)
------------ ------------
Total borrowed money $ 172,937 $ 135,459
============ ============Stockholders' equity at December 31, 2008 was $111.8 million compared to $130.4 million at December 31, 2007. The decrease during 2008 was primarily due to:
-- a net loss of $11.3 million;
-- cash dividends declared during 2008 totaling $4.2 million;
-- repurchases of shares of the Company's common stock during 2008
totaling $3.0 million; and
-- a decrease in accumulated other comprehensive income of $2.6 million.During 2008, the Company repurchased 208,113 shares of its common stock at an average price of $14.40 per share, of which 81,388 shares were purchased pursuant to the repurchase plan approved in March 2008. At December 31, 2008, the Company had 448,612 shares remaining to be repurchased under this plan. Since its initial public offering, the Company has repurchased an aggregate of 14,054,160 shares of its common stock at an average price of $12.23 per share.
The regulatory capital ratios of the Bank continued to exceed all regulatory requirements. At December 31, 2008, the Bank remained "well-capitalized" under the Office of Thrift Supervision's regulatory capital guidelines with a total capital to risk-weighted assets equal to 13.21% compared to 13.93% at December 31, 2007.
CFS Bancorp, Inc. is the parent of Citizens Financial Bank, a $1.1 billion asset federal savings bank. Citizens Financial Bank is an independent bank that provides business and personal banking services and currently operates 22 offices throughout adjoining markets in Chicago's Southland and Northwest Indiana. The Company maintains a website at www.citz.com.
This press release contains certain forward-looking statements and information relating to the Company that is based on the beliefs of management as well as assumptions made by and information currently available to management. These forward-looking statements include but are not limited to statements regarding general economic conditions, expectations for 2009, interest rate environment, credit environment, earnings and per share data, dividends, efficiency ratio levels, loan and deposit growth, diversification of the loan portfolio, non-performing asset levels, interest on loans, asset yields and cost of funds, net interest income, net interest margin, effect of the prime lending rate, non-interest income, non-interest expense, the expected effect of amortization of deferred premium on the FHLB debt and other risk factors identified in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. In addition, the words "anticipate," "believe," "estimate," "expect," "indicate," "intend," "should," and similar expressions, or the negative thereof, as they relate to the Company or the Company's management, are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks, uncertainties, assumptions and changes in circumstances. Forward-looking statements are not guarantees of future performance or outcomes, and actual results or events may differ materially from those included in these statements. The Company does not intend to update these forward-looking statements.
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA FOLLOW
CFS BANCORP, INC.
Highlights (Unaudited)
(Dollars in thousands, except per share data)
EARNINGS
HIGHLIGHTS
AND PERFORMANCE
RATIOS (1) Three Months Ended Year Ended
----------------------------------- ----------------------
December September December December December
31, 30, 31, 31, 31,
2008 2008 2007 2008 2007
---------- ---------- ---------- ---------- ----------
Net
income/
(loss) $ (9,740) $ (1,039) $ 2,035 $ (11,295) $ 7,525
Basic
earnings/
(loss) per
share (0.95) (0.10) 0.20 (1.10) 0.71
Diluted
earnings/
(loss) per
share (0.95) (0.10) 0.19 (1.10) 0.69
Cash
dividends
declared
per share 0.04 0.12 0.12 0.40 0.48
Return on
average
assets (3.45)% (0.37)% 0.69% (0.99)% 0.62%
Return on
average
equity (32.17) (3.36) 6.18 (8.93) 5.78
Average
yield on
interest-
earning
assets 5.30 5.60 6.29 5.67 6.39
Average cost
on
interest-
bearing
liabilities 2.21 2.41 3.68 2.65 3.82
Interest
rate spread 3.09 3.19 2.61 3.02 2.57
Net interest
margin 3.34 3.47 3.06 3.32 3.02
Average
equity to
average
assets (2) 10.72 11.17 11.14 11.14 10.75
Average
interest-
earning
assets
to average
interest-
bearing
liabilities
(2) 112.89 113.55 113.98 113.07 113.27
Non-interest
expense to
average
assets 3.46 3.13 2.74 3.01 2.76
Efficiency
ratio (3) 91.26 107.67 68.83 84.38 73.34
Market price
per share
of common
stock
for the
period
ended:
Closing $ 3.90 $ 9.25 $ 14.69 $ 3.90 $ 14.69
High 10.31 11.84 14.89 14.93 15.12
Low 3.50 8.10 14.09 3.50 13.93
STATEMENT OF
CONDITION
HIGHLIGHTS
December September December
31, 30, 31,
(at period end) 2008 2008 2007
---------- ---------- ----------
Total assets $1,121,855 $1,113,418 $1,150,278
Loans
receivable,
net of
unearned
fees 749,973 742,298 793,136
Total
deposits 824,097 832,223 863,272
Total
stockholders'
equity 111,809 121,101 130,414
Book value
per common
share 10.47 11.34 12.18
Non-performing
loans 54,701 47,799 29,600
Non-performing
assets 57,943 51,146 30,762
Allowance
for losses
on loans 15,558 8,664 8,026
Non-performing
loans
to total
loans 7.29% 6.44% 3.73%
Non-performing
assets
to total
assets 5.16 4.59 2.67
Allowance
for losses
on loans to
non-performing
loans 28.44 18.13 27.11
Allowance
for losses
on loans to
total loans 2.07 1.17 1.01
Employees
(FTE) 322 310 303
Banking
centers and
offices 22 22 22
Three Months Ended Year Ended
----------------------------------- ----------------------
AVERAGE December September December December December
BALANCE 31, 30, 31, 31, 31,
DATA 2008 2008 2007 2008 2007
---------- ---------- ---------- ---------- ----------
Total assets $1,123,477 $1,103,127 $1,171,519 $1,135,793 $1,210,327
Loans
receivable,
net of
unearned
fees 755,960 728,312 808,982 753,500 806,626
Total
interest-
earning
assets 1,038,235 1,021,029 1,087,772 1,050,615 1,130,957
Total
liabilities 1,003,037 979,934 1,040,956 1,009,254 1,080,229
Total
deposits 828,053 839,378 867,115 847,363 884,259
Interest-
bearing
deposits 762,037 775,960 800,200 784,087 819,944
Non-interest
bearing
deposits 66,016 63,418 66,915 63,276 64,315
Total
interest-
bearing
liabilities 919,698 899,218 954,315 929,199 998,439
Stockholders'
equity 120,440 123,193 130,563 126,539 130,098
(1) Ratios are annualized where appropriate.
(2) Ratios calculated on average balances for the periods presented.
(3) See calculations in the last table of this press release.
CFS BANCORP, INC.
Condensed Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
For the Three Months Ended Year Ended
---------------------------------- ---------------------
December September December December December
31, 2008 30, 2008 31, 2007 31, 2008 31, 2007
---------- ---------- ----------- ---------- ----------
Interest income:
Loans $ 10,390 $ 10,739 $ 13,860 $ 45,213 $ 56,678
Securities 3,144 3,278 2,650 12,673 12,684
Other 295 347 730 1,653 2,879
---------- ---------- ----------- ---------- ----------
Total interest
income 13,829 14,364 17,240 59,539 72,241
Interest
expense:
Deposits 3,799 4,058 6,393 18,099 26,222
Borrowings 1,316 1,399 2,452 6,557 11,912
---------- ---------- ----------- ---------- ----------
Total interest
expense 5,115 5,457 8,845 24,656 38,134
---------- ---------- ----------- ---------- ----------
Net interest
income 8,714 8,907 8,395 34,883 34,107
Provision for
losses on loans 16,941 1,441 1,131 26,296 2,328
---------- ---------- ----------- ---------- ----------
Net interest
income (loss)
after provision
for losses on
loans (8,227) 7,466 7,264 8,587 31,779
Non-interest
income:
Service charges
and other fees 1,507 1,640 1,770 6,051 6,795
Card-based fees 397 408 385 1,600 1,489
Commission
income 60 88 40 341 147
Available-for-
sale security
gains
(losses), net (282) (3,470) 527 (4,265) 536
Other asset
gains, net 22 11 9 30 22
Income from
bank-owned
life insurance 171 349 422 1,300 1,634
Other income 121 124 218 566 892
---------- ---------- ----------- ---------- ----------
Total
non-interest
income (loss) 1,996 (850) 3,371 5,623 11,515
Non-interest
expense:
Compensation
and employee
benefits 4,473 4,510 4,401 17,498 18,406
Net occupancy
expense 769 865 634 3,175 2,847
Furniture and
equipment
expense 706 562 584 2,362 2,241
Data processing 420 387 500 1,749 2,169
Professional
fees 476 379 340 1,341 1,540
Marketing 327 289 227 1,002 842
Other general
and
administrative
expenses 2,603 1,683 1,412 7,051 5,414
---------- ---------- ----------- ---------- ----------
Total
non-interest
expense 9,774 8,675 8,098 34,178 33,459
---------- ---------- ----------- ---------- ----------
Income (loss)
before income
taxes (16,005) (2,059) 2,537 (19,968) 9,835
Income tax
expense
(benefit) (6,265) (1,020) 502 (8,673) 2,310
---------- ---------- ----------- ---------- ----------
Net income
(loss) $ (9,740) $ (1,039) $ 2,035 $ (11,295) $ 7,525
========== ========== =========== ========== ==========
Per share data:
Basic earnings
(loss) per
share $ (0.95) $ (0.10) $ 0.20 $ (1.10) $ 0.71
Diluted
earnings
(loss) per
share $ (0.95) $ (0.10) $ 0.19 $ (1.10) $ 0.69
Cash dividends
declared per
share $ 0.04 $ 0.12 $ 0.12 $ 0.40 $ 0.48
Weighted-average
shares
outstanding 10,282,416 10,269,945 10,417,351 10,307,879 10,547,853
Weighted-average
diluted shares
outstanding 10,414,617 10,406,919 10,694,202 10,508,306 10,842,782
CFS BANCORP, INC.
Condensed Consolidated Statements of Condition (Unaudited)
(Dollars in thousands)
December September December
31, 2008 30, 2008 31, 2007
----------- ----------- -----------
ASSETS
Cash and amounts due from depository
institutions $ 15,714 $ 16,328 $ 25,825
Interest-bearing deposits 3,133 6,095 9,744
Federal funds sold 259 312 3,340
----------- ----------- -----------
Cash and cash equivalents 19,106 22,735 38,909
Securities available-for-sale, at
fair value 251,270 249,636 224,594
Securities held-to-maturity, at cost 6,940 3,500 3,940
Investment in Federal Home Loan Bank
stock, at cost 23,944 23,944 23,944
Loans receivable, net of unearned
fees 749,973 742,298 793,136
Allowance for losses on loans (15,558) (8,664) (8,026)
----------- ----------- -----------
Net loans 734,415 733,634 785,110
Interest receivable 4,325 4,584 5,505
Other real estate owned 3,242 3,347 1,162
Office properties and equipment 19,790 19,907 19,326
Investment in bank-owned life
insurance 36,606 36,435 36,475
Prepaid expenses and other assets 22,217 15,696 11,313
----------- ----------- -----------
Total assets $ 1,121,855 $ 1,113,418 $ 1,150,278
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 824,097 $ 832,223 $ 863,272
Borrowed money 172,937 141,146 135,459
Advance payments by borrowers for
taxes and insurance 4,320 7,009 3,341
Other liabilities 8,692 11,939 17,792
----------- ----------- -----------
Total liabilities 1,010,046 992,317 1,019,864
Stockholders' Equity:
Preferred stock, $0.01 par value;
15,000,000 shares authorized - - -
Common stock, $0.01 par value;
85,000,000 shares authorized;
23,423,306 shares issued;
10,674,511, 10,676,483 and
10,705,510 shares outstanding 234 234 234
Additional paid-in capital 188,760 189,966 191,162
Retained earnings 81,976 91,696 97,029
Treasury stock, at cost;
12,616,572, 12,614,993 and
12,583,856 shares (155,740) (155,717) (154,895)
Treasury stock, Rabbi Trust, at
cost; 132,223, 131,830 and
133,940 shares (1,726) (1,722) (1,766)
Unallocated common stock held by
Employee Stock Ownership Plan (832) (2,892) (3,126)
Accumulated other comprehensive
income (loss), net of tax (863) (464) 1,776
----------- ----------- -----------
Total stockholders' equity 111,809 121,101 130,414
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 1,121,855 $ 1,113,418 $ 1,150,278
=========== =========== ===========
CFS BANCORP, INC.
Efficiency Ratio Calculations (Unaudited)
(Dollars in thousands)
Three Months Ended
-------------------------------
December September December
31, 30, 31,
2008 2008 2007
--------- --------- ---------
Efficiency Ratio:
Non-interest expense $ 9,774 $ 8,675 $ 8,098
========= ========= =========
Net interest income plus non-interest
income $ 10,710 $ 8,057 $ 11,766
========= ========= =========
Efficiency ratio 91.26% 107.67% 68.83%
Core Efficiency Ratio:
Non-interest expense $ 9,774 $ 8,675 $ 8,098
Adjustment for goodwill impairment (1,185) - -
--------- --------- ---------
Non-interest expense - as adjusted $ 8,589 $ 8,675 $ 8,098
========= ========= =========
Net interest income plus non-interest
income $ 10,710 $ 8,057 $ 11,766
Adjustments:
Net realized (gains)/losses on securities
available-for-sale 282 3,470 (527)
Net realized gains on sales of assets (22) (11) (9)
Amortization of deferred premium 206 270 851
--------- --------- ---------
Net interest income plus non-interest
income - as adjusted $ 11,176 $ 11,786 $ 12,081
========= ========= =========
Core efficiency ratio 76.85% 73.60% 67.03%
Year Ended
--------------------
December December
31, 31,
2008 2007
--------- ---------
Efficiency Ratio:
Non-interest expense $ 34,178 $ 33,459
========= =========
Net interest income plus non-interest
income $ 40,506 $ 45,622
========= =========
Efficiency ratio 84.38% 73.34%
Core Efficiency Ratio:
Non-interest expense $ 34,178 $ 33,459
Adjustment for goodwill impairment (1,185) -
--------- ---------
Non-interest expense - as adjusted $ 32,993 $ 33,459
========= =========
Net interest income plus non-interest
income $ 40,506 $ 45,622
Adjustments:
Net realized (gains)/losses on securities
available-for-sale 4,265 (536)
Net realized gains on sales of assets (30) (22)
Amortization of deferred premium 1,452 4,540
--------- ---------
Net interest income plus non-interest
income - as adjusted $ 46,193 $ 49,604
========= =========
Core efficiency ratio 71.42% 67.45%
Contact:
Related Headlines
- CFS BANCORP INC Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits - EDGAR Online
- CFS Bancorp, Inc. Declares Cash Dividend - Marketwire
- CFS BANCORP INC Files SEC form 8-K, Other Events, Financial Statements and Exhibits - EDGAR Online
- CFS BANCORP INC Files SEC form 8-K, Other Events - EDGAR Online
- CFS BANCORP INC Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits - EDGAR Online
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