CMS Bancorp, Inc. Announces Financial Results for the Fiscal Year Ended September 30, 2011
November 18 2011 - 4:00PM
CMS Bancorp, Inc. (Nasdaq:CMSB) (the "Company"), the parent of
Community Mutual Savings Bank (the "Bank"), announced an 86%
increase in net income, to $309,000 or $0.18 per share, for the
fiscal year ended September 30, 2011, compared to $166,000, or
$0.10 per share, for the fiscal year ended September 30, 2010.
Commenting on these results, President and Chief Executive
Officer John Ritacco stated that "we are pleased that we were able
to report an increase in net income, in spite of the ever growing
and present challenges of the banking environment. We have
continued to grow our assets through increases in our local
deposits, particularly non-interest bearing commercial demand
deposits, higher levels of non-residential loan originations and an
increase in our investment securities portfolio. Our loan portfolio
mix of business has changed fairly dramatically over the past few
years. We have successfully transitioned from a predominately 1-4
family residential real estate portfolio towards an ever increasing
component of non-residential and commercial loans, thereby helping
us to keep our interest spreads at acceptable
levels. Commercial loan originations grew by approximately $30
million, despite the tepid loan demand and prevailing economic
conditions of 2011, thus allowing us to add to net interest income,
while interest rates continue their steady decline. Without this
shift toward non-residential lending, the yield on the loan
portfolio almost certainly would have declined by more than the
four basis points that it did in the fiscal year ended September
30, 2011."
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 consistent in-depth market analysis and
constant oversight of our liquidity and cash flow position. In
recent years, our non-interest expenses had risen due to our
expansion into the Mount Kisco market, higher professional fees,
and FDIC insurance premiums and other expenses. We instituted
strict cost control guidelines and as a result, our non-interest
expenses actually declined slightly in the fiscal year ended
September 30, 2011.
During 2010, we realized $457,000 of security gains which did
not recur in 2011. Further, lower residential mortgage demand
reduced the level of our loans originated for sale which reduced
our ability to generate secondary market fees and service
charges. Offsetting these earnings decreases, in the year
ended September 30, 2011, the Company realized the benefit of the
reversal of previously over-accrued taxes totaling $257,000."
Finally, Mr. Ritacco noted that "the effects of unemployment and
lower housing prices have had some effect on our delinquencies and
non-performing loan level however we continued to perform better
than peer group levels. Our charge–off history remained low and
well below peer group averages, as the Bank did not have a loan
charge-off in 2011. In addition, the Company's liquidity position
continues to be strong with $64.1 million of cash, cash equivalents
and securities available for sale as of September 30, 2011."
Forward-Looking Statements
This press release may include certain 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. Factors of particular importance to the Company
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, 2010, and Quarterly Reports on Form 10-Q for the
quarters ended December 31, 2010, March 31, 2011 and June 30, 2011
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 publicly release the result of any revisions that may
be made to 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. |
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION |
(Unaudited, In thousands) |
|
|
September 30, |
September 30, |
|
2011 |
2010 |
ASSETS |
|
Cash and cash equivalents |
$4,304 |
$3,434 |
Securities |
59,762 |
56,336 |
Loans, net |
178,796 |
179,066 |
Other assets |
10,914 |
8,549 |
Total assets |
$253,776 |
$247,385 |
|
|
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
Deposits |
$194,742 |
$188,306 |
Borrowed money |
34,421 |
34,578 |
Other liabilities |
2,318 |
2,745 |
Total liabilities |
231,481 |
225,629 |
Stockholders' equity |
22,295 |
21,756 |
Total liabilities and stockholders'
equity |
$253,776 |
$247,385 |
|
CMS Bancorp,
Inc. |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(Unaudited, In thousands,
except per share data) |
|
|
|
Year Ended |
|
September 30, |
|
2011 |
2010 |
|
|
|
Interest income |
$11,453 |
$11,426 |
Interest expense |
3,667 |
3,764 |
Net interest income |
7,786 |
7,662 |
Provision for loan losses |
86 |
366 |
Net interest income after provision for loan
losses |
7,700 |
7,296 |
Non-interest income |
430 |
1,029 |
Non-interest expense |
7,999 |
8,020 |
Income before income taxes |
131 |
305 |
Income tax (benefit) expense |
(178) |
139 |
Net income |
$309 |
$166 |
Net income per common share |
$0.18 |
$0.10 |
CONTACT: Stephen E. Dowd
Senior Vice President & Chief Financial Officer
914-422-2700
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