2012年2月28日星期二
Stephen Winningham Joins Houlihan Lokey as Co-Head of European Corporate Finance
LONDON–(BUSINESS WIRE)–
Houlihan Lokey, an international investment bank, announced today that Stephen Winningham has joined as Managing Director and Co-Head of European Corporate Finance in the firm’s London office.
Mr. Winningham, formerly with Lloyds Banking Group, will work alongside Brian McKay, Managing Director and fellow Co-Head of European Corporate Finance, and will focus on further developing the firm’s European M&A and financing business. He will report to Scott Adelson and Robert Hotz, Senior Managing Directors and Global Co-Heads of the firm’s Corporate Finance business.
Mr. Winningham was recently head of Major Corporates at Lloyds Banking Group, overseeing the group’s coverage of U.K. and U.S. investment grade corporate clients. Prior to this, he was global head of Lloyds Banking Group’s Financial Institutions business.
“Stephen’s extensive international experience and proven track record in building client relationships will be instrumental in further enhancing our European and cross-border coverage,” said Scott Adelson. “Stephen’s appointment underlines our commitment to provide fully-integrated client focused advisory services to our corporate clients. He will be working closely with our sector and product specialists to build on the strong presence Houlihan Lokey has already created in the region,” added Robert Hotz.
“I’m delighted to join the firm at a time when there is an increasing need for independent strategic advice in the marketplace, which is something that Houlihan Lokey specializes in,” said Stephen Winningham. “I look forward to contributing to our growth strategy and further enhancing our client offering.”
Mr. Winningham brings with him three decades of experience in investment banking and commercial banking. Prior to Lloyds Banking Group, he was group head of the Asia Industrials and M&A groups at Salomon Brothers/Citigroup in Hong Kong. He also held leadership roles at Paine Webber Inc. and Kidder Peabody & Co. in New York (both now part of the UBS Group). He started his investment banking career at Drexel Burnham Lambert. Mr. Winningham holds a MBA from Columbia University and a bachelor’s degree from Colgate University in New York. He undertook additional graduate level studies in economics at New York University.
About Houlihan Lokey
Houlihan Lokey is an international investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation serving clients for 40 years. The firm is ranked globally as the No. 1 restructuring advisor, the No. 1 M&A fairness opinion advisor over the past 10 years, and the No. 1 M&A advisor for U.S. transactions under $1 billion, according to Thomson Reuters. Houlihan Lokey has 14 offices and more than 850 employees in Europe, the United States and Asia. The firm serves more than 1,000 clients each year, ranging from closely held companies to Global 500 corporations. For more information, visit http://www.hl.com/.
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2012年2月21日星期二
Pat Robertson: We Need To Jail The Bankers Who Caused The Financial Crisis
video
The 700 Club‘s Pat Robertson discussed the banking crisis and glowingly spoke about how Iceland jailed many of the bankers who devastated their nation’s economy by taking out fraudulent loans. Robertson hailed the Nordic nation for its actions and said that Americans should deal with the financial crisis in the same way. “Guess what country is getting itself out of a financial problem by some draconian measures?” Robertson asked his co-host Terry Meeuwsen. “Greece?” she asked. “No, not even close. Iceland!” Robertson exclaimed. “They are putting people in jail. Prime ministers are being indicted. They are going after banks. The people said the banks are ripping us off. We don’t like what they did, and they brought our country to ruin. Suddenly, Iceland is turning around and they look like a big success story!”
“Think we could learn something?” Meeuwsen asked.
RELATED: Alan Grayson Gets Standing Ovation While Bill Maher Panel Mocks Occupy Wall Street ‘Hippies’
“We sure could!” Roberson continued. “We could start putting all of those bankers in jail. There was not one banker prosecuted and so many people were lying, and so-called “no-doc loans” and liars’ loans, and none of them have been held accountable. I’m not for putting people in jail. I’m sick of these — we’ve got too many penalties. Too many penalties, too many criminal sanctions, too many people in prison. But here is an opportunity for the people who wanted, you know, to enforce laws, to enforce that one. There must be some laws against lying on documents. I’m sure there are.”
“Lying to banks is a super no-no,” he added. “It has criminal sanctions, but nobody so far has had to pay the price, but Iceland is leading the way and their GDP is growing, and all of a sudden, they were in a terrible mess, terrible mess, and look what is happening!”
Watch the segment below via CBN:
(h/t Republic Report via Reddit)
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The 700 Club‘s Pat Robertson discussed the banking crisis and glowingly spoke about how Iceland jailed many of the bankers who devastated their nation’s economy by taking out fraudulent loans. Robertson hailed the Nordic nation for its actions and said that Americans should deal with the financial crisis in the same way. “Guess what country is getting itself out of a financial problem by some draconian measures?” Robertson asked his co-host Terry Meeuwsen. “Greece?” she asked. “No, not even close. Iceland!” Robertson exclaimed. “They are putting people in jail. Prime ministers are being indicted. They are going after banks. The people said the banks are ripping us off. We don’t like what they did, and they brought our country to ruin. Suddenly, Iceland is turning around and they look like a big success story!”“Think we could learn something?” Meeuwsen asked.
RELATED: Alan Grayson Gets Standing Ovation While Bill Maher Panel Mocks Occupy Wall Street ‘Hippies’
“We sure could!” Roberson continued. “We could start putting all of those bankers in jail. There was not one banker prosecuted and so many people were lying, and so-called “no-doc loans” and liars’ loans, and none of them have been held accountable. I’m not for putting people in jail. I’m sick of these — we’ve got too many penalties. Too many penalties, too many criminal sanctions, too many people in prison. But here is an opportunity for the people who wanted, you know, to enforce laws, to enforce that one. There must be some laws against lying on documents. I’m sure there are.”
“Lying to banks is a super no-no,” he added. “It has criminal sanctions, but nobody so far has had to pay the price, but Iceland is leading the way and their GDP is growing, and all of a sudden, they were in a terrible mess, terrible mess, and look what is happening!”
Watch the segment below via CBN:
(h/t Republic Report via Reddit)
Follow us on Twitter.
Sign up for Mediaite’s daily newsletter.
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FTTN to Scout New Targets at Investment Banking Conference
BRADENTON, Fla.–(BUSINESS WIRE)–
The executive leadership of First Titan Corp. (OTCBB: FTTN.OB – News) will seek out lucrative new business opportunities at the National Investment Banking Association (NIBA) Conference this week in New Orleans.
The conference will provide a forum for emerging companies seeking financing or exposure to present their story to venture capitalists, early-stage investors and industry leaders. The organization’s 121st conference, it is planned to be a comprehensive showcase of cutting-edge, innovative entrepreneurs and businesses from across the country, including up-and-comers in the energy sector.
First Titan is in search of potentially lucrative new partnerships, joint venture candidates and possible acquisitions that will increase the company’s developing foothold in the energy industry. The NIBA Conference will offer a prime opportunity for the company to network with rising stars in need of assistance in funding, marketing and distributing their projects.
The conference runs Thursday through Friday at the Le Pavillon hotel.
For more information on FTTN’s energy exploration initiative, please visit www.firsttitanenergy.com/investors.
First Titan is working to develop new energy solutions to compete in a booming global industry alongside Chesapeake Energy Corp. (NYSE: CHK), Anadarko Petroleum Corp. (NYSE: APC), SandRidge Energy Inc. (NYSE: SD) and Apache Corp. (NYSE: APA).
About First Titan Corp.
First Titan Corp., through its wholly owned subsidiary, First Titan Energy, LLC, is committed to the exploration and development of oil and natural gas resources around the globe. The company continually seeks to partner with energy developers that are pursuing innovative new methods of oil and gas extraction, including the development of new technologies, cleaner methods and unconventional resources.
For more information about First Titan Energy, please visit www.firsttitanenergy.com. Follow us on Twitter at www.twitter.com/firsttitancorp.
Notice Regarding Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words “believes,” “expects,” “anticipate” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone’s past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
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The executive leadership of First Titan Corp. (OTCBB: FTTN.OB – News) will seek out lucrative new business opportunities at the National Investment Banking Association (NIBA) Conference this week in New Orleans.
The conference will provide a forum for emerging companies seeking financing or exposure to present their story to venture capitalists, early-stage investors and industry leaders. The organization’s 121st conference, it is planned to be a comprehensive showcase of cutting-edge, innovative entrepreneurs and businesses from across the country, including up-and-comers in the energy sector.
First Titan is in search of potentially lucrative new partnerships, joint venture candidates and possible acquisitions that will increase the company’s developing foothold in the energy industry. The NIBA Conference will offer a prime opportunity for the company to network with rising stars in need of assistance in funding, marketing and distributing their projects.
The conference runs Thursday through Friday at the Le Pavillon hotel.
For more information on FTTN’s energy exploration initiative, please visit www.firsttitanenergy.com/investors.
First Titan is working to develop new energy solutions to compete in a booming global industry alongside Chesapeake Energy Corp. (NYSE: CHK), Anadarko Petroleum Corp. (NYSE: APC), SandRidge Energy Inc. (NYSE: SD) and Apache Corp. (NYSE: APA).
About First Titan Corp.
First Titan Corp., through its wholly owned subsidiary, First Titan Energy, LLC, is committed to the exploration and development of oil and natural gas resources around the globe. The company continually seeks to partner with energy developers that are pursuing innovative new methods of oil and gas extraction, including the development of new technologies, cleaner methods and unconventional resources.
For more information about First Titan Energy, please visit www.firsttitanenergy.com. Follow us on Twitter at www.twitter.com/firsttitancorp.
Notice Regarding Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words “believes,” “expects,” “anticipate” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone’s past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
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2012年2月20日星期一
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HONG KONG, February 20 (Reuters) – News and developments in Asia private equity from Reuters News for Lunar New Year and the week ending Feb. 17.
FEBRUARY 17
CARLYLE GROUP has begun the process of selling its over $300 million stake in Taiwan’s Ta Chong Bank Ltd, sources said, as it joins other private equity firms in looking to exit the island’s low-margin financial sector.
MMI INTERNATIONAL, a technology company owned by private equity fund KKR & Co LP, will price its $300 million five-year bond at 8 percent in New York, the bottom end of price guidance, after receiving strong support from U.S. investors, according to a source familiar with the matter.
AUSTRALIAN SURFWEAR company Billabong International rebuffed a $820 million private equity bid from TPG Capital , announcing plans to sell a stake in its Nixon watch brand and close up to 150 stores, sending its shares up by more than 50 percent.
CHINA HAS launched a 50 billion yuan ($7.93 billion) fund in Shanghai to aid overseas acquisitions by Chinese companies as part of efforts to promote international use of the yuan and build the commercial hub into a global financial center.
HANA FINANCIAL Group said that it had reached a deal with the labour union of Korea Exchange Bank (KEB) which had threatened to strike over possible job losses following Hana’s acquisition of KEB.
FEBRUARY 16
WINS INVESTMENT, the fund arm of Chinese property developer Gemdale, says it plans to double funds under management to take advantage of a government clampdown on property financing that could see smaller developers starved of funds.
L CAPITAL Asia, the private equity arm of the world’s biggest luxury goods group LVMH Moët Hennessy Louis Vuitton SA , could begin raising a new fund of more than $1 billion this year, as competition from Western brands creates opportunities to invest in Chinese retailers, its top executive said.
CANADA PENSION Plan Investment Board, which manages the country’s second largest pension fund, has hired former Goldman Sachs banker Mark Machin to head its Asia-Pacific business, according to a source close to the matter.
FEBRUARY 15
L CAPITAL has bought the 8 percent stake held by Wolfensohn Capital Partners in unlisted Indian ethnic wear chain Fabindia, two sources with direct knowledge of the matter said.
SOUTH KOREA’S National Pension Service (NPS), the world’s No.4 largest pension fund, plans to invest around $300 million in a real estate opportunity fund led by Blackstone Group , an NPS official said, amid the fund’s efforts to step up its investments in real estate assets.
U.S PRIVATE equity fund Norwest Venture Partners has invested $15 million in Manthan Systems, an unlisted Indian software products company, for a minority stake, the Indian company said on Wednesday.
WANT WANT China Holdings, the buyer of private equity fund MBK Partners’ Taiwan cable TV unit, will have to give more information to the island’s broadcast regulator concerning its media operations, the latest delay in the $2.4 billion deal.
JAPANESE PRIVATE equity secondary fund Ant Capital Partners said it closed its third Japanese secondaries fund at the end of December 2011 raising $140 million, attracting commitments from 15 Japanese institutional investors.
SOUTH KOREA’S SK Group is in talks to take over U.S. oil and gas company Chaparral Energy, a company 36 percent owned by CCMP, according to a source familiar with the matter.
FEBRUARY 14
TALKS BETWEEN Yahoo Inc and China’s Alibaba Group over the U.S. Internet giant’s Asian assets have hit an impasse, throwing their plans for a $17 billion tax-free asset swap into question, according to sources briefed on the situation.
CARLYLE SAID it would sell Talaris, a provider of cash-counting equipment, to Japan’s Glory Ltd for 650 million pounds ($1 billion), twice the value of its original investment.
INDONESIA WILL not implement a planned regulation to limit ownership in domestic banks, since it does not want to scare away potential foreign investors from the sale of state-owned Bank Mutiara, the state deposit agency (LPS) said.
FIDELITY GROWTH Partners, the private equity arm of Fidelity Worldwide Investment, along with existing investors have invested 2 billion rupees ($40.6 million) in Aptuit Laurus Pvt Ltd, an unlisted Indian pharma company.
EXCLUSIVE-AN Abu Dhabi sovereign wealth fund is exploring the sale of its $1.3 billion stake in Malaysian lender RHB Capital Bhd six months after buying the shares, sources familiar with the matter told Reuters, and has engaged in early talks with Japan’s Sumitomo Mitsui Banking Corp (SMBC).
FEBRUARY 13
U.S.-BASED private asset management firm Rohatyn Group said on Monday that it has agreed to acquire 60 percent of CapAsia, the private equity arm of Malaysia’s CIMB Group Holdings Bhd .
FEBRUARY 10
INDIA’S RELIANCE Communications reported its 10th straight quarter of declining profit as interest costs soared, with investors betting on a sale of the No. 2 mobile operator’s tower business to pare its heavy debt load.http://tourism9.com/ http://vkins.com/
FEBRUARY 17
CARLYLE GROUP has begun the process of selling its over $300 million stake in Taiwan’s Ta Chong Bank Ltd, sources said, as it joins other private equity firms in looking to exit the island’s low-margin financial sector.
MMI INTERNATIONAL, a technology company owned by private equity fund KKR & Co LP, will price its $300 million five-year bond at 8 percent in New York, the bottom end of price guidance, after receiving strong support from U.S. investors, according to a source familiar with the matter.
AUSTRALIAN SURFWEAR company Billabong International rebuffed a $820 million private equity bid from TPG Capital , announcing plans to sell a stake in its Nixon watch brand and close up to 150 stores, sending its shares up by more than 50 percent.
CHINA HAS launched a 50 billion yuan ($7.93 billion) fund in Shanghai to aid overseas acquisitions by Chinese companies as part of efforts to promote international use of the yuan and build the commercial hub into a global financial center.
HANA FINANCIAL Group said that it had reached a deal with the labour union of Korea Exchange Bank (KEB) which had threatened to strike over possible job losses following Hana’s acquisition of KEB.
FEBRUARY 16
WINS INVESTMENT, the fund arm of Chinese property developer Gemdale, says it plans to double funds under management to take advantage of a government clampdown on property financing that could see smaller developers starved of funds.
L CAPITAL Asia, the private equity arm of the world’s biggest luxury goods group LVMH Moët Hennessy Louis Vuitton SA , could begin raising a new fund of more than $1 billion this year, as competition from Western brands creates opportunities to invest in Chinese retailers, its top executive said.
CANADA PENSION Plan Investment Board, which manages the country’s second largest pension fund, has hired former Goldman Sachs banker Mark Machin to head its Asia-Pacific business, according to a source close to the matter.
FEBRUARY 15
L CAPITAL has bought the 8 percent stake held by Wolfensohn Capital Partners in unlisted Indian ethnic wear chain Fabindia, two sources with direct knowledge of the matter said.
SOUTH KOREA’S National Pension Service (NPS), the world’s No.4 largest pension fund, plans to invest around $300 million in a real estate opportunity fund led by Blackstone Group , an NPS official said, amid the fund’s efforts to step up its investments in real estate assets.
U.S PRIVATE equity fund Norwest Venture Partners has invested $15 million in Manthan Systems, an unlisted Indian software products company, for a minority stake, the Indian company said on Wednesday.
WANT WANT China Holdings, the buyer of private equity fund MBK Partners’ Taiwan cable TV unit, will have to give more information to the island’s broadcast regulator concerning its media operations, the latest delay in the $2.4 billion deal.
JAPANESE PRIVATE equity secondary fund Ant Capital Partners said it closed its third Japanese secondaries fund at the end of December 2011 raising $140 million, attracting commitments from 15 Japanese institutional investors.
SOUTH KOREA’S SK Group is in talks to take over U.S. oil and gas company Chaparral Energy, a company 36 percent owned by CCMP, according to a source familiar with the matter.
FEBRUARY 14
TALKS BETWEEN Yahoo Inc and China’s Alibaba Group over the U.S. Internet giant’s Asian assets have hit an impasse, throwing their plans for a $17 billion tax-free asset swap into question, according to sources briefed on the situation.
CARLYLE SAID it would sell Talaris, a provider of cash-counting equipment, to Japan’s Glory Ltd for 650 million pounds ($1 billion), twice the value of its original investment.
INDONESIA WILL not implement a planned regulation to limit ownership in domestic banks, since it does not want to scare away potential foreign investors from the sale of state-owned Bank Mutiara, the state deposit agency (LPS) said.
FIDELITY GROWTH Partners, the private equity arm of Fidelity Worldwide Investment, along with existing investors have invested 2 billion rupees ($40.6 million) in Aptuit Laurus Pvt Ltd, an unlisted Indian pharma company.
EXCLUSIVE-AN Abu Dhabi sovereign wealth fund is exploring the sale of its $1.3 billion stake in Malaysian lender RHB Capital Bhd six months after buying the shares, sources familiar with the matter told Reuters, and has engaged in early talks with Japan’s Sumitomo Mitsui Banking Corp (SMBC).
FEBRUARY 13
U.S.-BASED private asset management firm Rohatyn Group said on Monday that it has agreed to acquire 60 percent of CapAsia, the private equity arm of Malaysia’s CIMB Group Holdings Bhd .
FEBRUARY 10
INDIA’S RELIANCE Communications reported its 10th straight quarter of declining profit as interest costs soared, with investors betting on a sale of the No. 2 mobile operator’s tower business to pare its heavy debt load.http://tourism9.com/ http://vkins.com/
2012年2月6日星期一
Spot profit-eating investment fees
Investing » Don’t Let Investment Fees Strangle Profits
Investors are understandably eager to earn high returns. But nothing erodes that eagerness or kills the investor’s confidence in his or her advisers like a plethora of investment fees that eat away at those gains.
That’s one reason investors are paying a lot more attention to fees these days, according to Ram Subramaniam, head of products at TD Ameritrade, an online stock brokerage firm in Omaha, Neb.
“Any fee is getting more scrutiny, partly because the market returns aren’t as attractive as they were,” he says. “People are conscious and aware of what they’re paying. What you pay in fees eventually impacts your return.”
Here’s what to look for in investment fees and what to do about it.
Investment fees can be structured as a flat rate per month, per year, per trade or as a percentage of account assets or the transaction amount. For example, an annual account maintenance fee might be $100 or 1 percent of assets. A trade might cost $9.95 or involve a commission based on the price and number of shares. Some companies charge lower fees for trades entered online and higher fees for trades placed with the assistance of a telephone operator or stockbroker, according to a Bankrate chart of brokerage companies’ charges.
“When you’re buying a mutual fund, you have to pay for professional management, and there are commissions to buy or sell. Those could be as little as $8 or as much as 2 percent, or 5 percent for a load fund,” Krane says.
The term “load” means the investor pays the fund company an upfront and/or back-end percentage in addition to the broker’s transaction fee or commission, if any. These deals typically are highlighted on lists of so-called select or premium funds.
A no transaction-fee fund might be a good choice, but investors should understand that fund companies also typically pay a promotional fee to the brokerage company. As a result, that fund’s expense ratio might be higher because those behind-the-scenes fees are wrapped into the fund’s costs, Krane says.
Krane says some advisers earn commissions on the products they sell you, others are only paid a fee by their clients, and still others collect commissions and fees. Financial advisers who act solely in their client’s interest generally are compensated on a fee-only basis. The term “fee-based” generally means the adviser receives a mix of fees and commission.
“The client needs to know,” Krane says. “Granted, I’m paying you a fee, but in what capacity am I paying you? Are you operating as a fiduciary or salesperson? The financial planning community is going for a fee-only model. The Wall Street community wants fee-based.”
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Investors are understandably eager to earn high returns. But nothing erodes that eagerness or kills the investor’s confidence in his or her advisers like a plethora of investment fees that eat away at those gains.
That’s one reason investors are paying a lot more attention to fees these days, according to Ram Subramaniam, head of products at TD Ameritrade, an online stock brokerage firm in Omaha, Neb.
“Any fee is getting more scrutiny, partly because the market returns aren’t as attractive as they were,” he says. “People are conscious and aware of what they’re paying. What you pay in fees eventually impacts your return.”
Here’s what to look for in investment fees and what to do about it.
Investment fees
Examples include account maintenance fees, mutual fund management fees, trading fees or commissions, and investment management fees. Some are for services such as investment advice. Others are tied to activities such as buying or selling stocks, bonds or options. Still others are charged “just for the privilege of keeping your money there,” Subramaniam says.Investment fees can be structured as a flat rate per month, per year, per trade or as a percentage of account assets or the transaction amount. For example, an annual account maintenance fee might be $100 or 1 percent of assets. A trade might cost $9.95 or involve a commission based on the price and number of shares. Some companies charge lower fees for trades entered online and higher fees for trades placed with the assistance of a telephone operator or stockbroker, according to a Bankrate chart of brokerage companies’ charges.
Fund fees
Mutual fund companies also charge fees that vary in structure and amount, according to Justin Krane, president of Krane Financial Solutions, a financial planning firm in Los Angeles.“When you’re buying a mutual fund, you have to pay for professional management, and there are commissions to buy or sell. Those could be as little as $8 or as much as 2 percent, or 5 percent for a load fund,” Krane says.
The term “load” means the investor pays the fund company an upfront and/or back-end percentage in addition to the broker’s transaction fee or commission, if any. These deals typically are highlighted on lists of so-called select or premium funds.
A no transaction-fee fund might be a good choice, but investors should understand that fund companies also typically pay a promotional fee to the brokerage company. As a result, that fund’s expense ratio might be higher because those behind-the-scenes fees are wrapped into the fund’s costs, Krane says.
Fee-only or fee-based?
Many investors also pay additional investment fees to financial advisers.Krane says some advisers earn commissions on the products they sell you, others are only paid a fee by their clients, and still others collect commissions and fees. Financial advisers who act solely in their client’s interest generally are compensated on a fee-only basis. The term “fee-based” generally means the adviser receives a mix of fees and commission.
“The client needs to know,” Krane says. “Granted, I’m paying you a fee, but in what capacity am I paying you? Are you operating as a fiduciary or salesperson? The financial planning community is going for a fee-only model. The Wall Street community wants fee-based.”
Fee-saving tips
Savvy investors can save money on fees. Here are four tips:Tips to save money on fees
- Do your homework. Investors who dig into the brokerage company’s website or make a phone call and ask about investment fees can get a lot of useful information. Always find out how much an account or trade will cost before you make a commitment. “The more information and power investors have, the better decisions they will make about fees,” Subramaniam says.
- Compare your options. Actively managed mutual, international or global funds and funds from certain brands or brokerage companies tend to involve higher investment fees. Index funds and exchange-traded funds typically have lower fees, Subramaniam says. Still, fees shouldn’t be your only consideration but rather part of your investment decision.
- Do the math. Don’t assume a mutual fund being sold with no transaction fee is a better investment than one that costs a few bucks to buy. At times, a nominal transaction fee might be immaterial in the context of a large investment and expected high return. “If there is a better fund where there is a lower expense ratio and where you can pay the $35 versus something that has a lower fee, maybe you should do that,” Krane says.
- Add it up. Just as banks offer investment services, investment houses offer checking and savings accounts, debit cards, credit cards, mortgages, and other banking products. Subramaniam suggests companies offering cheap investment services might make up the difference on bank fees or visa versa. Consider the company’s entire fee schedule before you consolidate your accounts.
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CFS Bancorp, Inc. Reports Fourth Quarter and 2011 Financial Results
MUNSTER, IN–(Marketwire -02/06/12)- CFS Bancorp, Inc. (the Company), (NASDAQ: CITZ – News), the parent of Citizens Financial Bank (the Bank), today reported a net loss of $(12.6) million, or $(1.17) per share, for the fourth quarter of 2011, compared to net income of $918,000, or $.09 per diluted share, for the fourth quarter of 2010. The Company‘s unaudited net loss for the year ended December 31, 2011 was $(10.5) million, or $(.98) per share, compared to net income of $3.5 million, or $.32 per diluted share for 2010. The loss for the fourth quarter and year ended December 31, 2011 was primarily related to a $12.5 million provision for loan losses, a non-cash charge of $6.3 million related to a valuation allowance the Company recorded for a portion of its deferred tax assets, and the $1.4 million retirement compensation expense as a result of the retirement of the former Chairman and Chief Executive Officer in December 2011.
Financial results for the quarter also include:
“Our fourth quarter was challenging, but we made good progress in addressing asset quality issues, and our highest priority remains reducing non-performing assets,” said Daryl D. Pomranke, Chief Executive Officer. “The receipt of updated appraisals, which reflect the continued decrease in property values as a result of the current economic conditions, as well as additional information we obtained about the borrowers, the guarantors, or the operations of the property securing the loan, negatively impacted our analysis of specific loans reviewed for impairment in the current quarter. We believe, however, that we will be able to restructure some of these loans based upon their current, albeit lower, cash flow streams, and with demonstrated compliance with the modified terms over time, be able to return these loans to performing status. We expect further improvement in our credit quality indicators as we progress through 2012.”
“We continue to examine our cost structure and look for opportunities to work more effectively and efficiently. As a result of our ongoing review, a decision was made to close our Bolingbrook and Orland Park, Illinois offices as of March 31, 2012. This decision was based on our analysis that showed a low probability of achieving the targeted goals we believed were necessary to justify their continued operation,” added Pomranke. “In addition, our Voluntary Early Retirement Offering, implemented during the first quarter of 2012, will result in the Company incurring additional early retirement expenses in the first quarter of 2012, but allow us to achieve further staffing efficiencies and cost reductions in the long term.”
“We continue to have consistently good core deposit growth as a result of the partnership between our Retail and Business Banking teams and expect continued growth with a new checking deposit acquisition marketing program targeting both retail and business clients starting in the first quarter,” continued Pomranke. “Business loan originations in 2011 exceeded the 2010 levels, and we believe, based on early indications, that 2012 will meet or exceed 2011 levels.”
Progress on Strategic Growth and Diversification Plan
The Company continues to focus its efforts on reducing the level of non-performing loans, seeking to either restructure specific non-performing credits or foreclose, obtain title, and transfer the loan to other real estate owned where we can take control of and liquidate the underlying collateral. The Company’s ratio of non-performing loans to total loans decreased to 6.41% at December 31, 2011 from 8.18% at September 30, 2011 and 7.44% at December 31, 2010, primarily as a result of decreases in non-accruing non-owner occupied commercial real estate, commercial construction and development, and commercial participation loans and an increase in charge-offs and transfers to other real estate owned during the quarter. The ratio of non-performing assets to total assets declined to 5.63% at December 31, 2011 from 6.55% at September 30, 2011 and 6.85% at December 31, 2010, primarily due to the aforementioned reduction in non-accruing loans and the impact of a larger balance sheet from December 31, 2010. See the Asset Quality table in this press release for more detailed information.
Non-interest expense for the fourth quarter of 2011 increased to $10.9 million from $9.2 million for the third quarter of 2011 and from $9.3 million for the fourth quarter of 2010. The increase was primarily related to the retirement compensation expense of $1.4 million in connection with the retirement of the former Chairman of the Board and Chief Executive Officer, Thomas F. Prisby. Excluding the retirement compensation expense, non-interest expense for the fourth quarter was stable at $9.5 million compared to $9.2 million for the third quarter of 2011 and $9.3 million for the fourth quarter of 2010.
The Company remains focused on reducing non-interest expense. The implementation in 2011 of a hiring freeze and realignment of the retail banking center structure into three regions down from four has had a positive impact. The number of full-time equivalent (FTE) employees at December 31, 2011 was 303, down from 311 at September 30, 2011 and 322 at December 31, 2010. Additional FTE reductions are expected due to the planned outsourcing of certain activities currently performed internally as well as the other planned expense reduction initiatives noted above including the branch closings and Voluntary Early Retirement Offering. In late December 2011, the Bank filed the required notice with its primary regulator that it intends to close its Bolingbrook and Orland Park branches effective March 31, 2012 and transfer those client relationships to the Darien and Tinley Park banking centers, respectively.
The Company continues to target specific segments in its loan portfolio for growth, including commercial and industrial, owner occupied commercial real estate, and multifamily, which in the aggregate comprised 53.0% of the commercial loan portfolio at December 31, 2011, compared to 52.2% at September 30, 2011 and 50.7% at December 31, 2010. The Company’s focus on deepening relationships with clients continues to emphasize core deposit growth. Total core deposits as a percentage of total deposits increased to 61.1% at December 31, 2011 from 60.5% at September 30, 2011 and 57.0% at December 31, 2010. The Bank implemented a new High Performance Checking (HPC) deposit acquisition marketing program during the first quarter of 2012 to further enhance its growth in core deposits and related fee income as well as to provide additional cross-selling opportunities.
Pre-tax, Pre-Provision Earnings, As Adjusted(1)
The Company’s pre-tax, pre-provision earnings, as adjusted, increased to $2.8 million for the fourth quarter of 2011 from $2.7 million for the third quarter of 2011 and $2.2 million for the fourth quarter of 2010. The pre-tax, pre-provision earnings, as adjusted, for the fourth quarter of 2011 compared to the third quarter of 2011 was favorably impacted by increased gains on the sale of loans receivable combined with a decrease in compensation and employee benefits expense, primarily due to the reversal of incentive compensation expense accruals and the FTE employee reductions.
1 A schedule reconciling earnings in accordance with U.S. generally accepted accounting principles (GAAP) to the non-GAAP measurement of pre-tax, pre-provision earnings, as adjusted, is provided on the last page of the attached tables.
Net Interest Income and Net Interest Margin
Interest income totaled $10.7 million for the fourth quarter of 2011 and was stable compared to $10.7 million for the third quarter of 2011 and decreased 5.7% from $11.4 million for the fourth quarter of 2010. The fluctuations are primarily related to the Bank reinvesting its proceeds from sales and maturities of investment securities in lower yielding investments and maintaining higher levels of short-term liquid investments due to the lack of suitable higher yielding investment alternatives in the current low interest rate environment and modest loan demand.
Interest expense decreased 6.8% to $1.8 million for the fourth quarter of 2011 compared to $1.9 million for the third quarter of 2011 and 27.9% from $2.5 million for the fourth quarter of 2010. The Bank’s success in growing low cost core deposits and continued disciplined pricing on new and renewing certificates of deposit at lower interest rates contributed to the decrease in interest expense during the fourth quarter of 2011 compared to the third quarter of 2011 and the fourth quarter of 2010.
Non-Interest Income and Non-Interest Expense
Non-interest income decreased $776,000, or 23.4%, to $2.5 million for the fourth quarter of 2011 compared to the third quarter of 2011 primarily due to decreases of $493,000 in net gains on sales of investment securities, $203,000 in net gains on sales of other real estate owned, and $109,000 in service charges and other fees, partially offset by an increase in gain on the sale of mortgage loans of $122,000. Excluding the gains on sales of investment securities and other real estate owned, non-interest income was relatively stable compared to the third quarter of 2011.
Non-interest income increased $209,000, or 9.0%, from $2.3 million for the fourth quarter of 2010 primarily due to recording a gain on the sale of other real estate owned of $63,000 in the current quarter compared to the loss of $168,000 recorded in the fourth quarter of 2010.
Non-interest expense for the fourth quarter of 2011 increased 18.6% and 17.4%, respectively, to $10.9 million compared to $9.2 million for the third quarter of 2011 and $9.3 million for the fourth quarter of 2010. The increase during the fourth quarter of 2011 was primarily due to the retirement compensation expense of $1.4 million incurred as a result of the retirement of the Company’s former Chairman of the Board and Chief Executive Officer. Excluding this expense, non-interest expense for the fourth quarter would have totaled $9.5 million, which represents a 3.6% increase from the third quarter of 2011 and a 2.6% increase from the fourth quarter of 2010.
Compensation and employee benefits for the fourth quarter of 2011 decreased $499,000 from the third quarter of 2011 and $458,000 from the fourth quarter of 2010 primarily due to the reversal of accrued incentive compensation expense as a result of the net loss for the quarter coupled with a decrease in overall compensation expense due to a lower number of FTE employees. Net other real estate owned related expense increased during the fourth quarter, primarily due to $724,000 of additional valuation allowances recognized on certain other real estate owned properties. This increase resulted from updated appraisals received during the fourth quarter as well as a reduction in the sales price of a land development project acquired in the foreclosure of a commercial participation loan. Other non-interest expense in the fourth quarter of 2011 included the write-off of $305,000 of construction-in-progress costs related to future branch sites that were transferred in accordance with regulatory rules to other real estate owned during the first quarter of 2011 as the Bank has decided to not utilize the parcels for their original planned use. The former future branch land parcels in Olympia Fields and Bolingbrook, along with the current Bolingbrook office, are currently listed for sale with no additional loss expected.
Income Tax Expense
During the current quarter, the Company’s income tax expense totaled $638,000, which included a $6.3 million valuation allowance related to a portion of its deferred tax assets. Based on the results of its regular assessment of the ability to realize its deferred tax assets, the Company concluded that, based on all available evidence, both positive and negative, approximately $6.3 million of its deferred tax assets did not meet the “more likely than not” threshold for realization as of December 31, 2011. Although realization of the remaining net deferred tax assets of $16.3 million is not assured, management believes it is more likely than not that all of the recorded deferred tax assets will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during tax loss carryforward periods are reduced.
Asset Quality
The provision for loan losses increased to $12.5 million for the fourth quarter of 2011 compared to $2.7 million for the third quarter of 2011 and $825,000 for the fourth quarter of 2010. The increase during the fourth quarter of 2011 was primarily related to higher levels of loan charge-offs and the related impact on the historical loss experience factors utilized in the allowance for loan losses methodology.
The ratio of the allowance for loan losses to total loans decreased to 1.75% at December 31, 2011 compared to 2.37% and 2.34%, respectively, at September 30, 2011 and December 31, 2010, primarily due to the charge-off of $7.9 million of previously established specific reserves during the quarter as new information obtained for these non-performing loans indicated they should be considered collateral dependent loans. When it is determined that a non-performing collateral-dependent loan has a collateral shortfall, management immediately charges-off the collateral shortfall. As a result, the Company is not required to maintain an allowance for loan losses 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). As such, the ratio of the allowance for loan losses to total loans and the ratio of the allowance for loan losses to non-performing loans have been negatively affected by cumulative partial charge-offs of $15.1 million recorded through December 31, 2011 on $18.2 million (net of charge-offs) on non-performing collateral dependent loans.
During the fourth quarter, the Bank sold $560,000 of other real estate owned, recognizing pre-tax net gains on the sales of $63,000. The Bank currently has contracts on five separate other real estate owned properties which should reduce non-performing assets by an additional $1.3 million during the first quarter of 2012 with no anticipated loss on sale, presuming the transactions close as scheduled and pursuant to the contractual terms.
Balance Sheet and Capital
Through the execution of our Strategic Growth and Diversification Plan and our focus on lending to small- to medium-sized businesses, we continue to diversify our loan portfolio and reduce loans not meeting our current defined risk tolerance. The Company’s targeted growth segments within the loan portfolio, including commercial and industrial, commercial real estate – owner occupied, and multifamily commercial real estate, increased to 53.0% of the commercial loan portfolio at December 31, 2011 compared to 50.7% at December 31, 2010. Commercial participations decreased $4.7 million, or 28.0%, to $12.1 million compared to $16.7 million at September 30, 2011 and $11.5 million, or 48.9%, compared to $23.6 million at December 31, 2010. The decrease in participation loans is primarily due to charge-offs and transfers to other real estate owned during the quarter and year to date period.
During the fourth quarter of 2011, the Bank sold $10.3 million of conforming one-to-four family fixed-rate mortgage loans to Fannie Mae and recorded a gain on sale of $188,000.
Deposits
Borrowed Funds
Shareholders’ Equity
Shareholders’ equity at December 31, 2011 decreased $11.5 million to $103.2 million from $114.8 million at September 30, 2011, and decreased $9.7 million from $112.9 million at December 31, 2010. The decrease in shareholders’ equity during the fourth quarter of 2011 was primarily related to the net loss for the quarter, partially offset by the $1.2 million decrease in accumulated other comprehensive loss.
At December 31, 2011, the Company’s tangible common equity was $103.2 million, or 8.99% of assets, compared to $112.9 million, or 10.07% of assets at December 31, 2010. At December 31, 2011, the Bank’s core and risk-based capital ratios exceeded “minimum” and “well capitalized” regulatory capital requirements.
Company Profile
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 focusing its people, products, and services on helping individuals, businesses, and communities to be successful. The Bank has 22 full-service banking centers throughout adjoining markets in Chicago’s Southwest suburbs and Northwest Indiana. The Company’s website can be found at www.citz.com.
Forward-Looking Information
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 our ability to successfully execute our strategy and our Strategic Growth and Diversification Plan, the level and sufficiency of our current regulatory capital and equity ratios, our ability to continue to diversify the loan portfolio, our efforts at deepening client relationships, increasing our levels of core deposits, lowering our non-performing asset levels, managing and reducing our credit-related costs, increasing our revenue growth and levels of earning assets, the effects of general economic and competitive conditions nationally and within our core market area, our ability to sell other real estate owned properties, levels of provision for and the allowance for loan losses, amounts of charge-offs, levels of loan and deposit growth, interest on loans, asset yields and cost of funds, net interest income, net interest margin, non-interest income, non-interest expense, the interest rate environment, and other risk factors identified in the Company’s filings it makes 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 well as statements that include future events, tense, or dates, or that are not historical or current facts, 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 unless required to under the federal securities laws.
SELECTED CONSOLIDATED FINANCIALS AND OTHER DATA FOLLOW
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Financial results for the quarter also include:
- Non-performing assets decreased to $64.7 million compared to $76.5 million at September 30, 2011 primarily due to loan charge-offs;
- Non-performing loans to total loans decreased to 6.41% from 8.18% at September 30, 2011 and 7.44% at December 31, 2010;
- Gross charge-offs for the fourth quarter of 2011 totaled $17.4 million, of which $7.9 million had been previously reserved;
- Core deposits increased to $597.4 million, which is 61.1% of total deposits, compared to $596.8 million, or 60.5% of total deposits, at September 30, 2011 and $539.3 million, or 57.0% of total deposits, at December 31, 2010;
- Net interest margin was 3.38% in the fourth quarter of 2011 compared to 3.39% in the third quarter of 2011 and 3.49% in the fourth quarter of 2010; and
- The Bank’s risk-based capital ratio decreased to 12.65% from 13.57% at September 30, 2011 and 13.32% at December 31, 2010.
“Our fourth quarter was challenging, but we made good progress in addressing asset quality issues, and our highest priority remains reducing non-performing assets,” said Daryl D. Pomranke, Chief Executive Officer. “The receipt of updated appraisals, which reflect the continued decrease in property values as a result of the current economic conditions, as well as additional information we obtained about the borrowers, the guarantors, or the operations of the property securing the loan, negatively impacted our analysis of specific loans reviewed for impairment in the current quarter. We believe, however, that we will be able to restructure some of these loans based upon their current, albeit lower, cash flow streams, and with demonstrated compliance with the modified terms over time, be able to return these loans to performing status. We expect further improvement in our credit quality indicators as we progress through 2012.”
“We continue to examine our cost structure and look for opportunities to work more effectively and efficiently. As a result of our ongoing review, a decision was made to close our Bolingbrook and Orland Park, Illinois offices as of March 31, 2012. This decision was based on our analysis that showed a low probability of achieving the targeted goals we believed were necessary to justify their continued operation,” added Pomranke. “In addition, our Voluntary Early Retirement Offering, implemented during the first quarter of 2012, will result in the Company incurring additional early retirement expenses in the first quarter of 2012, but allow us to achieve further staffing efficiencies and cost reductions in the long term.”
“We continue to have consistently good core deposit growth as a result of the partnership between our Retail and Business Banking teams and expect continued growth with a new checking deposit acquisition marketing program targeting both retail and business clients starting in the first quarter,” continued Pomranke. “Business loan originations in 2011 exceeded the 2010 levels, and we believe, based on early indications, that 2012 will meet or exceed 2011 levels.”
Progress on Strategic Growth and Diversification Plan
The Company continues to focus its efforts on reducing the level of non-performing loans, seeking to either restructure specific non-performing credits or foreclose, obtain title, and transfer the loan to other real estate owned where we can take control of and liquidate the underlying collateral. The Company’s ratio of non-performing loans to total loans decreased to 6.41% at December 31, 2011 from 8.18% at September 30, 2011 and 7.44% at December 31, 2010, primarily as a result of decreases in non-accruing non-owner occupied commercial real estate, commercial construction and development, and commercial participation loans and an increase in charge-offs and transfers to other real estate owned during the quarter. The ratio of non-performing assets to total assets declined to 5.63% at December 31, 2011 from 6.55% at September 30, 2011 and 6.85% at December 31, 2010, primarily due to the aforementioned reduction in non-accruing loans and the impact of a larger balance sheet from December 31, 2010. See the Asset Quality table in this press release for more detailed information.
Non-interest expense for the fourth quarter of 2011 increased to $10.9 million from $9.2 million for the third quarter of 2011 and from $9.3 million for the fourth quarter of 2010. The increase was primarily related to the retirement compensation expense of $1.4 million in connection with the retirement of the former Chairman of the Board and Chief Executive Officer, Thomas F. Prisby. Excluding the retirement compensation expense, non-interest expense for the fourth quarter was stable at $9.5 million compared to $9.2 million for the third quarter of 2011 and $9.3 million for the fourth quarter of 2010.
The Company remains focused on reducing non-interest expense. The implementation in 2011 of a hiring freeze and realignment of the retail banking center structure into three regions down from four has had a positive impact. The number of full-time equivalent (FTE) employees at December 31, 2011 was 303, down from 311 at September 30, 2011 and 322 at December 31, 2010. Additional FTE reductions are expected due to the planned outsourcing of certain activities currently performed internally as well as the other planned expense reduction initiatives noted above including the branch closings and Voluntary Early Retirement Offering. In late December 2011, the Bank filed the required notice with its primary regulator that it intends to close its Bolingbrook and Orland Park branches effective March 31, 2012 and transfer those client relationships to the Darien and Tinley Park banking centers, respectively.
The Company continues to target specific segments in its loan portfolio for growth, including commercial and industrial, owner occupied commercial real estate, and multifamily, which in the aggregate comprised 53.0% of the commercial loan portfolio at December 31, 2011, compared to 52.2% at September 30, 2011 and 50.7% at December 31, 2010. The Company’s focus on deepening relationships with clients continues to emphasize core deposit growth. Total core deposits as a percentage of total deposits increased to 61.1% at December 31, 2011 from 60.5% at September 30, 2011 and 57.0% at December 31, 2010. The Bank implemented a new High Performance Checking (HPC) deposit acquisition marketing program during the first quarter of 2012 to further enhance its growth in core deposits and related fee income as well as to provide additional cross-selling opportunities.
Pre-tax, Pre-Provision Earnings, As Adjusted(1)
The Company’s pre-tax, pre-provision earnings, as adjusted, increased to $2.8 million for the fourth quarter of 2011 from $2.7 million for the third quarter of 2011 and $2.2 million for the fourth quarter of 2010. The pre-tax, pre-provision earnings, as adjusted, for the fourth quarter of 2011 compared to the third quarter of 2011 was favorably impacted by increased gains on the sale of loans receivable combined with a decrease in compensation and employee benefits expense, primarily due to the reversal of incentive compensation expense accruals and the FTE employee reductions.
1 A schedule reconciling earnings in accordance with U.S. generally accepted accounting principles (GAAP) to the non-GAAP measurement of pre-tax, pre-provision earnings, as adjusted, is provided on the last page of the attached tables.
Net Interest Income and Net Interest Margin
Three Months Ended ----------------------------------------- December 31, September 30, December 31, 2011 2011 2010 ------------ ------------- ------------ (Dollars in thousands) Net interest margin 3.38% 3.39% 3.49% Interest rate spread 3.29 3.30 3.38 Net interest income $ 8,966 $ 8,849 $ 8,925 Average assets: Yield on interest-earning assets 4.04% 4.12% 4.45% Yield on loans receivable 4.72 4.82 5.00 Yield on investment securities 3.12 2.93 3.64 Average interest-earning assets $ 1,053,452 $ 1,036,064 $ 1,015,374 Average liabilities: Cost of interest-bearing liabilities .75% .82% 1.07% Cost of interest-bearing deposits .66 .73 .95 Cost of borrowed funds 2.10 2.28 2.63 Average interest-bearing liabilities $ 931,800 $ 922,049 $ 910,765The Company’s net interest margin was stable at 3.38% for the fourth quarter of 2011 compared to 3.39% for the third quarter of 2011 and decreased 11 basis points from 3.49% for the fourth quarter of 2010. Net interest income was $9.0 million for the fourth quarter of 2011 compared to $8.8 million for the third quarter of 2011 and the fourth quarter of 2010. The net interest margin continued to be negatively impacted by the Bank’s higher levels of liquidity due to strong core deposit growth, modest loan demand, and elevated level of non-performing assets. The increase in yields on investment securities during the fourth quarter of 2011 was related to purchases of securities with large discounts and the additional related accretion income as well as an increase in yields related to the Bank’s overall investment securities portfolio. In addition, the level of the Bank’s non-performing loans continues to negatively affect the yield on loans receivable. The Bank’s net interest margin was positively affected by a seven basis point decrease in the cost of interest-bearing liabilities from the third quarter of 2011 and a 32 basis point decrease compared to the fourth quarter of 2010.
Interest income totaled $10.7 million for the fourth quarter of 2011 and was stable compared to $10.7 million for the third quarter of 2011 and decreased 5.7% from $11.4 million for the fourth quarter of 2010. The fluctuations are primarily related to the Bank reinvesting its proceeds from sales and maturities of investment securities in lower yielding investments and maintaining higher levels of short-term liquid investments due to the lack of suitable higher yielding investment alternatives in the current low interest rate environment and modest loan demand.
Interest expense decreased 6.8% to $1.8 million for the fourth quarter of 2011 compared to $1.9 million for the third quarter of 2011 and 27.9% from $2.5 million for the fourth quarter of 2010. The Bank’s success in growing low cost core deposits and continued disciplined pricing on new and renewing certificates of deposit at lower interest rates contributed to the decrease in interest expense during the fourth quarter of 2011 compared to the third quarter of 2011 and the fourth quarter of 2010.
Non-Interest Income and Non-Interest Expense
Non-interest income decreased $776,000, or 23.4%, to $2.5 million for the fourth quarter of 2011 compared to the third quarter of 2011 primarily due to decreases of $493,000 in net gains on sales of investment securities, $203,000 in net gains on sales of other real estate owned, and $109,000 in service charges and other fees, partially offset by an increase in gain on the sale of mortgage loans of $122,000. Excluding the gains on sales of investment securities and other real estate owned, non-interest income was relatively stable compared to the third quarter of 2011.
Non-interest income increased $209,000, or 9.0%, from $2.3 million for the fourth quarter of 2010 primarily due to recording a gain on the sale of other real estate owned of $63,000 in the current quarter compared to the loss of $168,000 recorded in the fourth quarter of 2010.
Non-interest expense for the fourth quarter of 2011 increased 18.6% and 17.4%, respectively, to $10.9 million compared to $9.2 million for the third quarter of 2011 and $9.3 million for the fourth quarter of 2010. The increase during the fourth quarter of 2011 was primarily due to the retirement compensation expense of $1.4 million incurred as a result of the retirement of the Company’s former Chairman of the Board and Chief Executive Officer. Excluding this expense, non-interest expense for the fourth quarter would have totaled $9.5 million, which represents a 3.6% increase from the third quarter of 2011 and a 2.6% increase from the fourth quarter of 2010.
Compensation and employee benefits for the fourth quarter of 2011 decreased $499,000 from the third quarter of 2011 and $458,000 from the fourth quarter of 2010 primarily due to the reversal of accrued incentive compensation expense as a result of the net loss for the quarter coupled with a decrease in overall compensation expense due to a lower number of FTE employees. Net other real estate owned related expense increased during the fourth quarter, primarily due to $724,000 of additional valuation allowances recognized on certain other real estate owned properties. This increase resulted from updated appraisals received during the fourth quarter as well as a reduction in the sales price of a land development project acquired in the foreclosure of a commercial participation loan. Other non-interest expense in the fourth quarter of 2011 included the write-off of $305,000 of construction-in-progress costs related to future branch sites that were transferred in accordance with regulatory rules to other real estate owned during the first quarter of 2011 as the Bank has decided to not utilize the parcels for their original planned use. The former future branch land parcels in Olympia Fields and Bolingbrook, along with the current Bolingbrook office, are currently listed for sale with no additional loss expected.
Income Tax Expense
During the current quarter, the Company’s income tax expense totaled $638,000, which included a $6.3 million valuation allowance related to a portion of its deferred tax assets. Based on the results of its regular assessment of the ability to realize its deferred tax assets, the Company concluded that, based on all available evidence, both positive and negative, approximately $6.3 million of its deferred tax assets did not meet the “more likely than not” threshold for realization as of December 31, 2011. Although realization of the remaining net deferred tax assets of $16.3 million is not assured, management believes it is more likely than not that all of the recorded deferred tax assets will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during tax loss carryforward periods are reduced.
Asset Quality
December 31, September 30, December 31, 2011 2011 2010 -------------- --------------- ---------------- (Dollars in thousands) Non-performing loans (NPLs) $ 45,587 $ 59,335 $ 54,492 Other real estate owned 19,091 17,195 22,324 ------------- -------------- --------------- Non-performing assets (NPAs) $ 64,678 $ 76,530 $ 76,816 ============= ============== =============== Allowance for loan losses (ALL) $ 12,424 $ 17,186 $ 17,179 Provision for loan losses for the quarter ended 12,542 2,673 825 Loans charged off: Current period net charge- offs $ 9,364 $ 2,526 $ 1,131 Previously established specific reserves 7,940 -- -- ------------- -------------- --------------- Net charge-offs for the quarter ended $ 17,304 $ 2,526 $ 1,131 ============= ============== =============== NPLs / total loans 6.41% 8.18% 7.44% NPAs / total assets 5.63 6.55 6.85 ALL / total loans 1.75 2.37 2.34 ALL / NPLs 27.25 28.96 31.53Total non-performing loans decreased 23.2% to $45.6 million at December 31, 2011 from $59.3 million at September 30, 2011 and 16.3% from $54.5 million at December 31, 2010. The ratio of non-performing loans to total loans decreased to 6.41% during the quarter compared to 8.18% at September 30, 2011 and 7.44% at December 31, 2010, primarily due to charge-offs recorded during the quarter. During the fourth quarter of 2011, non-performing loans decreased primarily due to $17.4 million of gross charge-offs and $2.9 million of transfers to other real estate owned, which were offset by $6.3 million of loans transferred to non-accrual status. The $17.4 million of charge-offs included $7.9 million of previously established specific reserves, a $2.9 million charge-off on a $4.4 million commercial construction and land development loan which was based on the receipt of a new bulk sale appraisal value during the quarter, and a $1.6 million charge-off on a $1.9 million commercial non-owner occupied loan secured by an office building based on an updated appraisal.
The provision for loan losses increased to $12.5 million for the fourth quarter of 2011 compared to $2.7 million for the third quarter of 2011 and $825,000 for the fourth quarter of 2010. The increase during the fourth quarter of 2011 was primarily related to higher levels of loan charge-offs and the related impact on the historical loss experience factors utilized in the allowance for loan losses methodology.
The ratio of the allowance for loan losses to total loans decreased to 1.75% at December 31, 2011 compared to 2.37% and 2.34%, respectively, at September 30, 2011 and December 31, 2010, primarily due to the charge-off of $7.9 million of previously established specific reserves during the quarter as new information obtained for these non-performing loans indicated they should be considered collateral dependent loans. When it is determined that a non-performing collateral-dependent loan has a collateral shortfall, management immediately charges-off the collateral shortfall. As a result, the Company is not required to maintain an allowance for loan losses 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). As such, the ratio of the allowance for loan losses to total loans and the ratio of the allowance for loan losses to non-performing loans have been negatively affected by cumulative partial charge-offs of $15.1 million recorded through December 31, 2011 on $18.2 million (net of charge-offs) on non-performing collateral dependent loans.
During the fourth quarter, the Bank sold $560,000 of other real estate owned, recognizing pre-tax net gains on the sales of $63,000. The Bank currently has contracts on five separate other real estate owned properties which should reduce non-performing assets by an additional $1.3 million during the first quarter of 2012 with no anticipated loss on sale, presuming the transactions close as scheduled and pursuant to the contractual terms.
Balance Sheet and Capital
12/31/2011 9/30/2011 12/31/2010 ------------ ------------ ------------ (Dollars in thousands) Assets: Total assets $ 1,148,950 $ 1,168,481 $ 1,121,676 Interest-bearing deposits 59,090 84,344 37,130 Investment securities 250,752 232,804 214,302 Loans receivable, net of unearned fees 711,226 725,467 732,584 Liabilities and Equity: Total liabilities $ 1,045,702 $ 1,053,726 $ 1,008,748 Deposits 977,424 986,441 945,884 Borrowed funds 54,200 56,115 53,550 Shareholders' equity 103,248 114,755 112,928Loans Receivable
12/31/2011 9/30/2011 12/31/2010 --------------- --------------- --------------- % of % of % of Amount Total Amount Total Amount Total -------- ----- -------- ----- -------- ----- (Dollars in thousands) Commercial loans: Commercial and industrial $ 85,160 12.0% $ 83,569 11.5% $ 74,940 10.3% Commercial real estate - owner occupied 93,833 13.2 100,244 13.8 99,435 13.6 Commercial real estate - non-owner occupied 188,293 26.5 193,267 26.7 191,998 26.2 Commercial real estate - multifamily 71,876 10.1 70,129 9.7 72,080 9.8 Commercial construction and land development 22,045 3.1 22,635 3.1 24,310 3.3 Commercial participations 12,053 1.7 16,739 2.3 23,594 3.2 -------- ----- -------- ----- -------- ----- Total commercial loans 473,260 66.6 486,583 67.1 486,357 66.4 Retail loans: One-to-four family residential 181,698 25.6 181,025 25.0 185,321 25.3 Home equity lines of credit 52,873 7.4 53,953 7.4 56,177 7.7 Retail construction and land development 1,022 .1 1,299 .2 3,176 .4 Other 2,771 .4 3,007 .4 2,122 .3 -------- ----- -------- ----- -------- ----- Total retail loans 238,364 33.5 239,284 33.0 246,796 33.7 -------- ----- -------- ----- -------- ----- Total loans receivable 711,624 100.1 725,867 100.1 733,153 100.1 Net deferred loan fees (398) (.1) (400) (.1) (569) (.1) -------- ----- -------- ----- -------- ----- Total loans receivable, net of unearned fees $711,226 100.0% $725,467 100.0% $732,584 100.0% ======== ===== ======== ===== ======== =====Loan fundings during the three months ended December 31, 2011 totaled $32.7 million compared to loan fundings of $20.3 million for the three months ended September 30, 2011 and $30.6 million for the three months ended December 31, 2010, reflecting an increase in loan demand during the current year period. The Bank’s business banking pipeline continues to improve. Loan fundings during the fourth quarter of 2011 were offset by loan payoffs and repayments of $16.2 million, transfers to other real estate owned totaling $2.9 million, and gross charge-offs of $17.4 million.
Through the execution of our Strategic Growth and Diversification Plan and our focus on lending to small- to medium-sized businesses, we continue to diversify our loan portfolio and reduce loans not meeting our current defined risk tolerance. The Company’s targeted growth segments within the loan portfolio, including commercial and industrial, commercial real estate – owner occupied, and multifamily commercial real estate, increased to 53.0% of the commercial loan portfolio at December 31, 2011 compared to 50.7% at December 31, 2010. Commercial participations decreased $4.7 million, or 28.0%, to $12.1 million compared to $16.7 million at September 30, 2011 and $11.5 million, or 48.9%, compared to $23.6 million at December 31, 2010. The decrease in participation loans is primarily due to charge-offs and transfers to other real estate owned during the quarter and year to date period.
During the fourth quarter of 2011, the Bank sold $10.3 million of conforming one-to-four family fixed-rate mortgage loans to Fannie Mae and recorded a gain on sale of $188,000.
Deposits
12/31/2011 9/30/2011 12/31/2010 --------------- --------------- --------------- % of % of % of Amount Total Amount Total Amount Total --------- ----- --------- ----- --------- ----- (Dollars in thousands) Checking accounts: Non-interest bearing $ 96,321 9.9% $ 106,476 10.8% $ 90,315 9.5% Interest-bearing 175,150 17.9 172,007 17.4 149,948 15.9 Money market accounts 192,593 19.7 185,906 18.9 177,566 18.8 Savings accounts 133,292 13.6 132,378 13.4 121,504 12.8 --------- ----- --------- ----- --------- ----- Core deposits 597,356 61.1 596,767 60.5 539,333 57.0 Certificates of deposit accounts 380,068 38.9 389,674 39.5 406,551 43.0 --------- ----- --------- ----- --------- ----- Total deposits $ 977,424 100.0% $ 986,441 100.0% $ 945,884 100.0% ========= ===== ========= ===== ========= =====The Bank strives to grow deposits through many channels including enhancing its brand recognition within its communities, offering attractive deposit products, bringing in new client relationships by meeting all of their banking needs, and holding its experienced sales team accountable for growing deposits and relationships. The decrease in non-interest bearing deposits during the fourth quarter of 2011 is primarily due to the loss of deposits related to a large business client exiting bankruptcy and moving their primary banking relationship to one of the equity participant-subsidiary banks. Since December 31, 2010, the Bank has increased its core deposits by $58.0 million, or 10.8%, and core deposits at December 31, 2011 represent 61.1% of total deposits compared to 57.0% at December 31, 2010. Increasing core deposits is reflective of our success in deepening our client relationships, one of our core Strategic Plan objectives.
Borrowed Funds
12/31/2011 9/30/2011 12/31/2010 ---------- ---------- ---------- (Dollars in thousands) Short-term variable-rate repurchase agreements $ 14,334 $ 16,175 $ 13,352 FHLB advances 39,866 39,940 40,198 ---------- ---------- ---------- Total borrowed funds $ 54,200 $ 56,115 $ 53,550 ========== ========== ==========Borrowed funds decreased during the fourth quarter of 2011 primarily due to decreased borrowings from repurchase agreements, which will fluctuate depending on the client’s liquidity levels.
Shareholders’ Equity
Shareholders’ equity at December 31, 2011 decreased $11.5 million to $103.2 million from $114.8 million at September 30, 2011, and decreased $9.7 million from $112.9 million at December 31, 2010. The decrease in shareholders’ equity during the fourth quarter of 2011 was primarily related to the net loss for the quarter, partially offset by the $1.2 million decrease in accumulated other comprehensive loss.
At December 31, 2011, the Company’s tangible common equity was $103.2 million, or 8.99% of assets, compared to $112.9 million, or 10.07% of assets at December 31, 2010. At December 31, 2011, the Bank’s core and risk-based capital ratios exceeded “minimum” and “well capitalized” regulatory capital requirements.
Company Profile
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 focusing its people, products, and services on helping individuals, businesses, and communities to be successful. The Bank has 22 full-service banking centers throughout adjoining markets in Chicago’s Southwest suburbs and Northwest Indiana. The Company’s website can be found at www.citz.com.
Forward-Looking Information
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 our ability to successfully execute our strategy and our Strategic Growth and Diversification Plan, the level and sufficiency of our current regulatory capital and equity ratios, our ability to continue to diversify the loan portfolio, our efforts at deepening client relationships, increasing our levels of core deposits, lowering our non-performing asset levels, managing and reducing our credit-related costs, increasing our revenue growth and levels of earning assets, the effects of general economic and competitive conditions nationally and within our core market area, our ability to sell other real estate owned properties, levels of provision for and the allowance for loan losses, amounts of charge-offs, levels of loan and deposit growth, interest on loans, asset yields and cost of funds, net interest income, net interest margin, non-interest income, non-interest expense, the interest rate environment, and other risk factors identified in the Company’s filings it makes 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 well as statements that include future events, tense, or dates, or that are not historical or current facts, 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 unless required to under the federal securities laws.
SELECTED CONSOLIDATED FINANCIALS AND OTHER DATA FOLLOW
CFS BANCORP, INC. Consolidated Statements of Income (Loss) (Unaudited) (Dollars in thousands, except per share data) Three Months Ended Year Ended ------------------------------------ ------------------------ December September December December December 31, 2011 30, 2011 31, 2010 31, 2011 31, 2010 ----------- ----------- ----------- ----------- ----------- Interest income: Loans receivable $ 8,625 $ 8,871 $ 9,179 $ 35,315 $ 37,682 Investment securities 2,015 1,794 2,053 7,894 8,605 Other interest- earning assets 94 80 146 495 483 ----------- ----------- ----------- ----------- ----------- Total interest income 10,734 10,745 11,378 43,704 46,770 Interest expense: Deposits 1,464 1,602 2,032 6,736 8,374 Borrowed funds 304 294 421 1,117 1,813 ----------- ----------- ----------- ----------- ----------- Total interest expense 1,768 1,896 2,453 7,853 10,187 ----------- ----------- ----------- ----------- ----------- Net interest income 8,966 8,849 8,925 35,851 36,583 Provision for loan losses 12,542 2,673 825 17,114 3,877 ----------- ----------- ----------- ----------- ----------- Net interest income (expense) after provision for loan losses (3,576) 6,176 8,100 18,737 32,706 Non-interest income: Service charges and other fees 1,154 1,263 1,284 4,667 5,114 Card-based fees 520 520 469 2,035 1,867 Commission income 36 100 28 259 168 Net gain (loss) on sale of: Investment securities 265 758 233 1,715 689 Loans held for sale 188 76 178 330 178 Other real estate owned 63 266 (168) 2,562 (154) Income from bank-owned life insurance 180 216 191 812 893 Other income 128 121 110 471 481 ----------- ----------- ----------- ----------- ----------- Total non- interest income 2,534 3,320 2,325 12,851 9,236 Non-interest expense: Compensation and employee benefits 4,319 4,818 4,777 19,423 18,705 Net occupancy expense 677 706 735 2,818 2,832 FDIC insurance premiums and regulatory assessments 483 481 660 2,121 2,551 Professional fees 354 309 433 1,385 2,283 Furniture and equipment expense 449 436 426 1,802 1,973 Data processing 433 424 438 1,740 1,754 Marketing 244 213 262 914 781 Other real estate owned related expense, net 906 614 127 4,123 1,483 Loan collection expense 244 117 160 714 638 Severance and retirement compensation expense 1,375 -- 17 1,375 545 Other general and administrative expenses 1,409 1,068 1,240 4,702 4,230 ----------- ----------- ----------- ----------- ----------- Total non- interest expense 10,893 9,186 9,275 41,117 37,775 ----------- ----------- ----------- ----------- ----------- Income (loss) before income tax expense (benefit) (11,935) 310 1,150 (9,529) 4,167 Income tax (benefit) expense 638 (84) 232 945 707 ----------- ----------- ----------- ----------- ----------- Net income (loss) $ (12,573) $ 394 $ 918 $ (10,474) $ 3,460 =========== =========== =========== =========== =========== Basic earnings (loss) per share $ (1.17) $ .04 $ .09 $ (.98) $ .33 Diluted earnings (loss) per share $ (1.17) $ .04 $ .09 $ (.98) $ .32 Weighted- average common and common share equivalents outstanding: Basic 10,699,996 10,693,724 10,662,792 10,684,133 10,635,939 Diluted 10,742,480 10,753,386 10,719,886 10,740,602 10,705,814 CFS BANCORP, INC. Consolidated Statements of Condition (Unaudited) (Dollars in thousands) December 31, September 30, December 31, 2011 2011 2010 ------------ ------------- ------------ ASSETS Cash and amounts due from depository institutions $ 32,982 $ 33,421 $ 24,624 Interest-bearing deposits 59,090 84,344 37,130 ------------ ------------- ------------ Cash and cash equivalents 92,072 117,765 61,754 Investment securities available- for-sale, at fair value 234,381 218,417 197,101 Investment securities held-to- maturity, at cost 16,371 14,387 17,201 Investment in Federal Home Loan Bank stock, at cost 6,188 8,638 20,282 Loans receivable, net of unearned fees 711,226 725,467 732,584 Allowance for loan losses (12,424) (17,186) (17,179) ------------ ------------- ------------ Net loans 698,802 708,281 715,405 Loans held for sale 1,124 839 -- Investment in bank-owned life insurance 36,275 36,095 35,463 Accrued interest receivable 3,011 2,908 3,162 Other real estate owned 19,091 17,195 22,324 Office properties and equipment 17,539 18,053 20,464 Net deferred tax assets 16,273 17,708 17,923 Prepaid expenses and other assets 7,823 8,195 10,597 ------------ ------------- ------------ Total assets $ 1,148,950 $ 1,168,481 $ 1,121,676 ============ ============= ============ LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 977,424 $ 986,441 $ 945,884 Borrowed funds 54,200 56,115 53,550 Advance payments by borrowers for taxes and insurance 4,275 5,868 4,618 Other liabilities 9,803 5,302 4,696 ------------ ------------- ------------ Total liabilities 1,045,702 1,053,726 1,008,748 Shareholders' 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; 10,874,668, 10,877,015, and 10,850,040 shares outstanding 234 234 234 Additional paid-in capital 187,030 187,023 187,164 Retained earnings 72,683 85,365 83,592 Treasury stock, at cost; 12,548,638, 12,546,291, and 12,573,266 shares (154,773) (154,766) (155,112) Accumulated other comprehensive loss, net of tax (1,926) (3,101) (2,950) ------------ ------------- ------------ Total shareholders' equity 103,248 114,755 112,928 ------------ ------------- ------------ Total liabilities and shareholders' equity $ 1,148,950 $ 1,168,481 $ 1,121,676 ============ ============= ============ CFS BANCORP, INC. Selected Financial Data (Unaudited) (Dollars in thousands, except per share data) December 31, September 30, December 31, 2011 2011 2010 ------------- ------------- ------------- Book value per share $ 9.49 $ 10.55 $ 10.41 Tangible book value per share 9.49 10.55 10.41 Shareholders' equity to total assets 8.99% 9.82% 10.07% Core capital ratio (Bank only) 8.26 8.87 9.07 Total risk-based capital ratio (Bank only) 12.65 13.57 13.32 Common shares outstanding 10,874,668 10,877,015 10,850,040 Employees (FTE) 303 311 322 Number of full service banking centers 22 22 22 Three Months Ended Year Ended --------------------------------- ---------------------- December September December December December 31, 2011 30, 2011 31, 2010 31, 2011 31, 2010 ---------- ---------- ---------- ---------- ---------- Average Balance Data: Total assets $1,161,928 $1,150,149 $1,135,865 $1,146,118 $1,105,333 Loans receivable, net of unearned fees 724,562 730,524 728,849 728,811 747,768 Investment securities 253,061 239,655 220,489 249,953 208,450 Interest-earning assets 1,053,452 1,036,064 1,015,374 1,032,346 995,864 Deposits 979,320 972,486 946,431 973,641 905,935 Interest-bearing deposits 875,221 871,637 848,079 873,494 813,799 Non-interest bearing deposits 104,099 100,849 98,352 100,147 92,136 Interest-bearing liabilities 931,800 922,049 910,765 919,886 889,444 Shareholders' equity 114,793 116,408 114,203 115,096 112,601 Performance Ratios (annualized): Return on average assets (4.29)% .14% .32% (.91)% .31% Return on average equity (43.45) 1.34 3.19 (9.10) 3.07 Average yield on interest- earning assets 4.04 4.11 4.45 4.23 4.70 Average cost of interest- bearing liabilities .75 .82 1.07 .85 1.15 Interest rate spread 3.29 3.29 3.38 3.38 3.55 Net interest margin 3.38 3.39 3.49 3.47 3.68 Non-interest expense to average assets 3.72 3.17 3.24 3.59 3.42 Efficiency ratio (1) 96.96 80.50 84.19 87.51 83.70 Cash dividends declared per share $ .01 $ .01 $ .01 $ .04 $ .04 Market price per share of common stock for the period ended: Close $ 4.31 $ 4.34 $ 5.23 $ 4.31 $ 5.23 High 4.89 5.70 5.48 5.90 6.24 Low 4.12 4.34 4.60 4.12 3.02 ------------------ (1) The efficiency ratio is calculated by dividing non-interest expense by the sum of net interest income and non-interest income, excluding net gain on sales of investment securities. CFS BANCORP, INC. Reconciliation of Income Before Income Taxes to Pre-Tax, Pre-Provision Earnings, as adjusted (Unaudited) (Dollars in thousands) Three Months Ended ---------------------------------- December September December 31, 2011 30, 2011 31, 2010 ---------- ---------- ---------- Income (loss) before income taxes (benefit) $ (11,935) $ 310 $ 1,150 Provision for loan losses 12,542 2,673 825 ---------- ---------- ---------- Pre-tax, pre-provision earnings 607 2,983 1,975 Add back (subtract): Net gain on sale of investment securities (265) (758) (233) Net (gain) loss on sale of other real estate owned (63) (266) 168 Other real estate owned related expense, net 906 614 127 Loan collection expense 244 117 160 Severance and retirement compensation expense 1,375 -- 17 ---------- ---------- ---------- Pre-tax, pre-provision earnings, as adjusted $ 2,804 $ 2,690 $ 2,214 ========== ========== ========== Pre-tax, pre-provision earnings, as adjusted, to average assets (annualized) .96% .93% .77% ========== ========== ========== Twelve Months Ended ---------------------- December December 31, 2011 31, 2010 ---------- ---------- Income (loss) before income taxes (benefit) $ (9,529) $ 4,167 Provision for loan losses 17,114 3,877 ---------- ---------- Pre-tax, pre-provision earnings 7,585 8,044 Add back (subtract): Net gain on sale of investment securities (1,715) (689) Net (gain) loss on sale of other real estate owned (2,562) 154 Other real estate owned related expense, net 4,123 1,483 Loan collection expense 714 638 Severance and retirement compensation expense 1,375 545 ---------- ---------- Pre-tax, pre-provision earnings, as adjusted $ 9,520 $ 10,175 ========== ========== Pre-tax, pre-provision earnings, as adjusted, to average assets .83% .92% ========== ==========The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (GAAP) and general practice within the banking industry. Management uses certain non-GAAP financial measures to evaluate the Company’s financial performance and has provided the non-GAAP financial measures of pre-tax, pre-provision earnings, as adjusted, and pre-tax, pre-provision earnings, as adjusted, to average assets. In these non-GAAP financial measures, the provision for loan losses, other real estate owned related income and expense, loan collection expense, and certain other items, such as gains and losses on sales of investment securities and other assets, and severance and retirement compensation expenses are excluded. Management believes that these measures are useful because they provide a more comparable basis for evaluating financial performance excluding certain credit-related costs and other non-recurring items period to period and allows management and others to assess the Company’s ability to generate pre-tax earnings to cover the Company’s provision for loan losses and other credit-related costs. Although these non-GAAP financial measures are intended to enhance investors understanding of the Company’s business performance, these operating measures should not be considered as an alternative to GAAP.
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2012年2月4日星期六
Spain reforms banks to revive economy
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Spain’s Economy Minister Luis de Guindos pauses during a news conference at the Moncloa Palace in Madrid Friday after a government cabinet meeting.
Spain’s Economy Minister Luis de Guindos pauses during a news conference at the Moncloa Palace in Madrid Friday after a government cabinet meeting.
The regulations approved by the Cabinet require banks to set aside an estimated (euro) 50 billion $65 billion (50 billion euro) more in provisions to cover toxic real estate assets by the end of the year.
Those unable to do so can present merger plans by the end of May and get government assistance from an existing bailout fund that will be strengthened with an addition 6 billion euro.
To avoid being forced to raise so much money for the real estate provisions, banks will face enormous pressure to sell assets like land and foreclosed or unsold homes at lower market prices.
The aim is to keep them from hoarding the loans and property on their balance sheets, a practice which has already sapped strength from the banking system and the country’s finances overall for years.
“With this set of measures, the fundamental idea is to boost confidence in our economy, strengthen the banking sector and its credibility in the national and international realm,” Deputy Prime Minister Soraya Saenz de Santamaria told reporters after the Cabinet meeting.
Spain rode an unprecedented building boom from the 1990s until the financial crisis hit in 2008, but the real estate bubble that burst left it with an
unemployment rate of 22.8 percent — the highest among the 17 nations using the euro — and increasingly tight credit for business and individuals.
Bailed-out Portugal is suffering from an even deeper credit crisis, and its leader appealed Friday for Portuguese banks to be given more leeway to meet capital requirements because the credit crunch is driving viable companies out of business
The country’s bailout terms require Portugal’s banks to improve their reserve cushion of high-quality capital to help them weather Europe’s prolonged sovereign debt crisis.
That debt-reduction process, called deleveraging, has compelled them to reduce the number of loans they grant.
If the deleveraging process is too intense, it can be counterproductive in the medium term. That’s the fine-tuning we’re looking for,” Prime Minister Pedro Passos Coelho told weekly newspaper Sol in comments published Friday.
Spain’s development ministry now estimates there are 687,000 unsold new homes on the national market, but other studies put the number as high as 1.6 million in the nation of 47 million. There is no government figure for used homes for sale, but estimates range into the millions.
The move to clean up the banking sector and force property sales “is a good plan but it should have been done before because credit has been frozen here for such a long time,” said Carles Vergara, a Financial Management professor at Madrid’s IESE business school.
While home prices have declined more than 20 percent over the last several years to levels not seen since 2005, Spanish banks still hold about (euro) 175 billion in real estate holdings that the Bank of Spain classifies as “problematic.”
The government plan should spur banks to reduce prices by double digits and send down prices of homes not held by banks as well, said Fernando Encinar, head of research at the popular Idealisto.com real estate web site.
“Prices will go down more, and at a faster rate,” he said.
The book value of property on Spanish banks’ balance sheets is widely seen as inflated, and that has spooked foreign investors, making it hard for the banks to tap capital markets for money to lend.
Some economists warned that the bank reforms won’t work overnight miracles in restructuring the banking sector or getting credit flowing again to the eurozone’s fourth largest economy, which is expected to slip into recession this quarter.
The government, elected in November, is working desperately to chip away at a bloated deficit and keep Spain from having to request a bailout like those taken by Greece, Ireland and Portugal.
Its first big step was a (euro) 15 billion ($20 billion) deficit reduction package of spending cuts and tax hikes in January.
Coming up next week is a controversial package of reforms to shake up a labor market seen as one of Europe’s most rigid and encourage business to hire. Prime Minister Mariano Rajoy was heard saying at an EU summit on Monday that the reform will “cost me a general strike.”
Under the current system, people who are laid off or fired must be paid between 20 to 33 days of salary per year worked, and companies can’t negotiate directly with their unionized workers because they must adopt wage deals set for entire sectors.
Unions are expected to rally against the changes, and investors are wary about the possibility of social unrest if union members are joined in protests by droves of discontented Spaniards — including young adults under 25 hit by a jobless rate of nearly 50 percent.
But Antonio Barroso, an London-based analysts at the Eurasia Group consulting firm, said Rajoy’s government will almost certainly follow through with the labor reform.
“Unless the protests get out of control and get really nasty I don’t think the government will backtrack,” he said.
The bank reforms require institutions to increase provisions for troubled assets from 30 percent to 80 percent of book value, creating the incentive for them to sell them off.
Larger Spain banks should be able to set aside money to meet the new provisions, but experts say the rules will set off another round of mergers among ‘cajas,’ or savings bank chains more heavily exposed to real estate. The number of cajas dropped from 45 to 15 in a previous bout of mergers.
Spain could end up with as few as three to five cajas, said Oscar Moreno of Madrid brokerage Renta 4. Bank layoffs and branch closings are inevitable, added Rafael Pampillon, an economist at Madrid’s IE Business School.
“Clearly, we are going to downsize,” Pampillon said.
————
Ciaran Giles in Madrid contributed to this report.
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2012年2月2日星期四
Cornerstone Community Bank Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2011
RED BLUFF, Calif.–(BUSINESS WIRE)– Cornerstone Community Bank, (OTCBB: CRSB), announced today its financial results for the fourth quarter and full year ended December 31, 2011.
The Bank reported net income of $208,000 for the three months ended December 31, 2011 representing an increase of $83,000, or 66%, compared to net income of $125,000 for the same period last year. Diluted earnings per share for the three months ended December 31, 2011 were $0.17 compared to $0.10 for the same period last year. Net income for the year ended December 31, 2011 was $703,000, or $0.57 per diluted share compared to net income of $323,000, or $0.26 per diluted share, for the year ended December 31, 2010.
The return on average assets for the three months ended December 31, 2011 was 0.95% compared to 0.65% for the same period last year. The return on average equity was 8.25% for the three months ended December 31, 2011 compared to 5.38% for the same period last year. For the year ended December 31, 2011, the return on average assets was 0.87% and the return on average equity was 7.34% compared to 0.43% and 3.54%, respectively, for the year ended December 31, 2010.
President and CEO, Jeffrey Finck stated, “We are pleased with our 2011 performance. We opened our new Redding office in the third quarter which contributed to the 20% growth in deposits during the year. We look forward to continued success in 2012.”
Net Interest Income
Net interest income of $975,000 for the quarter ended December 31, 2011 represented an increase of approximately $107,000, or 12%, from $868,000 for the same quarter one year earlier. The net interest margin decreased to 4.64% during the quarter ended December 31, 2011 compared to 4.66% during the same quarter last year. For the year ended December 31, 2011, net interest income was $3,758,000 compared to $3,133,000 for the year ended December 31, 2010, representing an increase of $625,000, or 20%. The net interest margin increased to 4.86% for the year ended December 31, 2011 compared to 4.42% for the year ended December 31, 2010.
Provision for credit losses
The provision for credit losses for the quarter ended December 31, 2011 was $110,000 compared to $160,000 for the quarter ended December 31, 2010. The provision for credit losses for the year ended December 31, 2011 was $259,000 compared to $461,000 for the year ended December 31, 2010.
Non-Interest Income
The Bank’s non-interest income for the quarter ended December 31, 2011 was $84,000 compared to $140,000 for the quarter ended December 31, 2010. For the year ended December 31, 2011, non-interest income was $318,000 compared to $454,000 for the year ended December 31, 2010.
Non-Interest Expense
Non-interest expense was $894,000 for the quarter ended December 31, 2011 compared to $723,000 for the same period one year earlier. For the year ended December 31, 2011, non-interest expense was $3,583,000 compared to $2,802,000 for the year ended December 31, 2010. In April 2011, the Bank decided to exit the indirect auto lending business. As a result of this decision, the Bank incurred $252,000 of incremental charges during the second quarter of 2011.
Income Taxes
During the year ended December 31, 2011, the Bank recognized $470,000 of deferred tax assets which added to the Bank’s net income. The Bank determined that the historical progress in earnings performance met the standards for recognition of these assets in 2011.
Balance Sheet
The Bank had total assets at December 31, 2011 of $91 million, compared to $76 million at December 31, 2010, representing growth of $15 million, or 20%.
Total loans outstanding at December 31, 2011, net of unearned income, were $65 million compared to $55 million at December 31, 2010, representing an increase of $9 million, or 17%.
Total deposits were $81 million at December 31, 2011 compared to total deposits of $67 million at December 31, 2010, representing an increase of $14 million, or 20%.
Credit Quality
The allowance for loan losses was $1,270,000, or 1.97% of total loans at December 31, 2011, compared to $1,104,000, or 2.00% of total loans, at December 31, 2010. Nonperforming assets at December 31, 2011 were $185,000 compared to $232,000 at December 31, 2010.
The bank recognized $93,000 in net loan charge-offs during the year ended December 31, 2011, representing 0.16% of average loans.
Capital Adequacy
At December 31, 2011, shareholders’ equity totaled $10.2 million compared to $9.0 million at December 31, 2010. At December 31, 2011, the total risk-based capital ratio, tier one capital ratio, and leverage ratio was 14.52%, 13.27% and 10.89%, respectively, all exceeding the regulatory standards for “well-capitalized” institutions of 10.00%, 6.00%, 5.00%, respectively.
About Cornerstone Community Bank
Cornerstone Community Bank is a California state-chartered bank with its headquarters office in Red Bluff and a branch office in Redding. The Bank provides commercial banking services, including a wide variety of deposit products and real estate, construction, commercial and consumer loans to small businesses, professionals and individuals. Additional information about the Bank is available on its website at www.bankcornerstone.com
Forward-Looking Statements
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by that Act. Forward-looking statements describe future plans, strategies and expectations. Forward-looking statements are based on currently available information, expectations, assumptions, projections, and management’s judgment about the Bank, the banking industry and general economic conditions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.
Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
The Bank reported net income of $208,000 for the three months ended December 31, 2011 representing an increase of $83,000, or 66%, compared to net income of $125,000 for the same period last year. Diluted earnings per share for the three months ended December 31, 2011 were $0.17 compared to $0.10 for the same period last year. Net income for the year ended December 31, 2011 was $703,000, or $0.57 per diluted share compared to net income of $323,000, or $0.26 per diluted share, for the year ended December 31, 2010.
The return on average assets for the three months ended December 31, 2011 was 0.95% compared to 0.65% for the same period last year. The return on average equity was 8.25% for the three months ended December 31, 2011 compared to 5.38% for the same period last year. For the year ended December 31, 2011, the return on average assets was 0.87% and the return on average equity was 7.34% compared to 0.43% and 3.54%, respectively, for the year ended December 31, 2010.
President and CEO, Jeffrey Finck stated, “We are pleased with our 2011 performance. We opened our new Redding office in the third quarter which contributed to the 20% growth in deposits during the year. We look forward to continued success in 2012.”
Net Interest Income
Net interest income of $975,000 for the quarter ended December 31, 2011 represented an increase of approximately $107,000, or 12%, from $868,000 for the same quarter one year earlier. The net interest margin decreased to 4.64% during the quarter ended December 31, 2011 compared to 4.66% during the same quarter last year. For the year ended December 31, 2011, net interest income was $3,758,000 compared to $3,133,000 for the year ended December 31, 2010, representing an increase of $625,000, or 20%. The net interest margin increased to 4.86% for the year ended December 31, 2011 compared to 4.42% for the year ended December 31, 2010.
Provision for credit losses
The provision for credit losses for the quarter ended December 31, 2011 was $110,000 compared to $160,000 for the quarter ended December 31, 2010. The provision for credit losses for the year ended December 31, 2011 was $259,000 compared to $461,000 for the year ended December 31, 2010.
Non-Interest Income
The Bank’s non-interest income for the quarter ended December 31, 2011 was $84,000 compared to $140,000 for the quarter ended December 31, 2010. For the year ended December 31, 2011, non-interest income was $318,000 compared to $454,000 for the year ended December 31, 2010.
Non-Interest Expense
Non-interest expense was $894,000 for the quarter ended December 31, 2011 compared to $723,000 for the same period one year earlier. For the year ended December 31, 2011, non-interest expense was $3,583,000 compared to $2,802,000 for the year ended December 31, 2010. In April 2011, the Bank decided to exit the indirect auto lending business. As a result of this decision, the Bank incurred $252,000 of incremental charges during the second quarter of 2011.
Income Taxes
During the year ended December 31, 2011, the Bank recognized $470,000 of deferred tax assets which added to the Bank’s net income. The Bank determined that the historical progress in earnings performance met the standards for recognition of these assets in 2011.
Balance Sheet
The Bank had total assets at December 31, 2011 of $91 million, compared to $76 million at December 31, 2010, representing growth of $15 million, or 20%.
Total loans outstanding at December 31, 2011, net of unearned income, were $65 million compared to $55 million at December 31, 2010, representing an increase of $9 million, or 17%.
Total deposits were $81 million at December 31, 2011 compared to total deposits of $67 million at December 31, 2010, representing an increase of $14 million, or 20%.
Credit Quality
The allowance for loan losses was $1,270,000, or 1.97% of total loans at December 31, 2011, compared to $1,104,000, or 2.00% of total loans, at December 31, 2010. Nonperforming assets at December 31, 2011 were $185,000 compared to $232,000 at December 31, 2010.
The bank recognized $93,000 in net loan charge-offs during the year ended December 31, 2011, representing 0.16% of average loans.
Capital Adequacy
At December 31, 2011, shareholders’ equity totaled $10.2 million compared to $9.0 million at December 31, 2010. At December 31, 2011, the total risk-based capital ratio, tier one capital ratio, and leverage ratio was 14.52%, 13.27% and 10.89%, respectively, all exceeding the regulatory standards for “well-capitalized” institutions of 10.00%, 6.00%, 5.00%, respectively.
About Cornerstone Community Bank
Cornerstone Community Bank is a California state-chartered bank with its headquarters office in Red Bluff and a branch office in Redding. The Bank provides commercial banking services, including a wide variety of deposit products and real estate, construction, commercial and consumer loans to small businesses, professionals and individuals. Additional information about the Bank is available on its website at www.bankcornerstone.com
Forward-Looking Statements
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by that Act. Forward-looking statements describe future plans, strategies and expectations. Forward-looking statements are based on currently available information, expectations, assumptions, projections, and management’s judgment about the Bank, the banking industry and general economic conditions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.
Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
| CORNERSTONE COMMUNITY BANK | ||||||||||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||||
| 12/31/11 | 09/30/11 | 06/30/11 | 03/31/11 | 12/31/10 | ||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Cash and due from banks | $ | 1,957 | $ | 1,944 | $ | 1,542 | $ | 1,448 | $ | 1,552 | ||||||||||||||||
| Federal funds sold | - | - | - | - | - | |||||||||||||||||||||
| Interest-bearing deposits | 445 | 3,790 | 1,945 | 4,381 | 1,535 | |||||||||||||||||||||
| Investment securities | 22,173 | 13,652 | 14,496 | 14,677 | 16,465 | |||||||||||||||||||||
| Loans held for sale | - | - | - | - | - | |||||||||||||||||||||
| Loans, net of unearned income | 64,504 | 60,595 | 57,980 | 56,800 | 55,248 | |||||||||||||||||||||
| Allowance for loan losses | (1,270 | ) | (1,180 | ) | (1,140 | ) | (1,099 | ) | (1,104 | ) | ||||||||||||||||
| Loans, net | 63,234 | 59,415 | 56,840 | 55,701 | 54,144 | |||||||||||||||||||||
| Premises and equipment, net | 1,226 | 1,105 | 1,067 | 1,042 | 777 | |||||||||||||||||||||
| Other assets | 2,312 | 1,917 | 2,014 | 1,732 | 1,855 | |||||||||||||||||||||
| Total assets | $ | 91,347 | $ | 81,823 | $ | 77,904 | $ | 78,981 | $ | 76,328 | ||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||
| Demand noninterest-bearing | $ | 11,833 | $ | 9,995 | $ | 8,256 | $ | 8,075 | $ | 10,169 | ||||||||||||||||
| Demand interest-bearing | 12,928 | 9,013 | 7,145 | 6,558 | 7,416 | |||||||||||||||||||||
| Money market and savings | 32,322 | 33,393 | 33,833 | 37,385 | 31,429 | |||||||||||||||||||||
| Time deposits of less than $100,000 | 8,841 | 8,376 | 9,088 | 9,377 | 7,717 | |||||||||||||||||||||
| Time deposits of $100,000 or more | 14,718 | 10,449 | 9,433 | 8,158 | 10,309 | |||||||||||||||||||||
| Total deposits | 80,642 | 71,226 | 67,755 | 69,553 | 67,040 | |||||||||||||||||||||
| Other liabilities | 535 | 577 | 492 | 286 | 301 | |||||||||||||||||||||
| Total liabilities | 81,177 | 71,803 | 68,247 | 69,839 | 67,341 | |||||||||||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||
| Common stock | 11,959 | 11,959 | 11,959 | 11,959 | 11,959 | |||||||||||||||||||||
| Additional paid-in capital | 685 | 656 | 627 | 599 | 570 | |||||||||||||||||||||
| Accumulated deficit | (2,650 | ) | (2,858 | ) | (3,035 | ) | (3,224 | ) | (3,353 | ) | ||||||||||||||||
| Accumulated other comprehensive income (loss) | 176 | 263 | 106 | (192 | ) | (189 | ) | |||||||||||||||||||
| Total shareholders’ equity | 10,170 | 10,020 | 9,657 | 9,142 | 8,987 | |||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 91,347 | $ | 81,823 | $ | 77,904 | $ | 78,981 | $ | 76,328 | ||||||||||||||||
| CAPITAL ADEQUACY | ||||||||||||||||||||||||||
| Tier I leverage ratio | 10.89 | % | 11.87 | % | 11.65 | % | 12.06 | % | 11.85 | % | ||||||||||||||||
| Tier I risk-based capital ratio | 13.27 | % | 14.11 | % | 14.23 | % | 14.69 | % | 14.80 | % | ||||||||||||||||
| Total risk-based capital ratio | 14.52 | % | 15.36 | % | 15.49 | % | 15.95 | % | 16.05 | % | ||||||||||||||||
| Total equity / total assets | 11.13 | % | 12.25 | % | 12.40 | % | 11.57 | % | 11.77 | % | ||||||||||||||||
| Book value per share | $ | 8.48 | $ | 8.35 | $ | 8.05 | $ | 7.62 | $ | 7.49 | ||||||||||||||||
| CORNERSTONE COMMUNITY BANK | |||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||||||||||
| Three months ended | Year ended | ||||||||||||||||||||||||||||
| 12/31/11 | 09/30/11 | 12/31/10 | 12/31/11 | 12/31/10 | |||||||||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||||||||||
| Loans | $ | 1,014 | $ | 1,006 | $ | 944 | $ | 3,920 | $ | 3,507 | |||||||||||||||||||
| Federal funds sold | - | - | - | - | - | ||||||||||||||||||||||||
| Investment securities | 126 | 117 | 92 | 487 | 361 | ||||||||||||||||||||||||
| Other | 2 | 2 | 5 | 7 | 25 | ||||||||||||||||||||||||
| Total interest income | 1,142 | 1,125 | 1,041 | 4,414 | 3,893 | ||||||||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||
| Interest-bearing demand | 7 | 4 | 7 | 18 | 24 | ||||||||||||||||||||||||
| Money market and savings | 91 | 92 | 91 | 380 | 341 | ||||||||||||||||||||||||
| Time deposits | 69 | 64 | 75 | 257 | 394 | ||||||||||||||||||||||||
| Other | - | 1 | - | 1 | 1 | ||||||||||||||||||||||||
| Total interest expense | 167 | 161 | 173 | 656 | 760 | ||||||||||||||||||||||||
| Net interest income | 975 | 964 | 868 | 3,758 | 3,133 | ||||||||||||||||||||||||
| Provision for credit losses | 110 | 60 | 160 | 259 | 461 | ||||||||||||||||||||||||
| Net interest income after provision | |||||||||||||||||||||||||||||
| for credit losses | 865 | 904 | 708 | 3,499 | 2,672 | ||||||||||||||||||||||||
| NON-INTEREST INCOME | |||||||||||||||||||||||||||||
| Service charges on deposit accounts | 23 | 23 | 17 | 84 | 86 | ||||||||||||||||||||||||
| Gain on sale of SBA loans | - | - | - | 37 | 11 | ||||||||||||||||||||||||
| Gain on sale of securities | - | 37 | 97 | 37 | 254 | ||||||||||||||||||||||||
| Other non-interest income | 61 | 50 | 26 | 160 | 103 | ||||||||||||||||||||||||
| Total non-interest income | 84 | 110 | 140 | 318 | 454 | ||||||||||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||||||||
| Salaries and benefits | 466 | 445 | 365 | 1,935 | 1,392 | ||||||||||||||||||||||||
| Premises and fixed assets | 109 | 108 | 75 | 403 | 287 | ||||||||||||||||||||||||
| Other | 319 | 317 | 283 | 1,245 | 1,123 | ||||||||||||||||||||||||
| Total operating expenses | 894 | 870 | 723 | 3,583 | 2,802 | ||||||||||||||||||||||||
| Income before income taxes | 55 | 144 | 125 | 234 | 324 | ||||||||||||||||||||||||
| Income taxes | (153 | ) | (33 | ) | - | (469 | ) | 1 | |||||||||||||||||||||
| NET INCOME | $ | 208 | $ | 177 | $ | 125 | $ | 703 | $ | 323 | |||||||||||||||||||
| EARNINGS PER SHARE | |||||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.17 | $ | 0.15 | $ | 0.10 | $ | 0.59 | $ | 0.27 | |||||||||||||||||||
| Diluted earnings per share | $ | 0.17 | $ | 0.15 | $ | 0.10 | $ | 0.57 | $ | 0.26 | |||||||||||||||||||
| Average common shares outstanding | 1,200,000 | 1,200,000 | 1,200,000 | 1,200,000 | 1,200,000 | ||||||||||||||||||||||||
| Average common and equivalent | |||||||||||||||||||||||||||||
| shares outstanding | 1,200,000 | 1,218,056 | 1,280,289 | 1,224,701 | 1,258,183 | ||||||||||||||||||||||||
| PERFORMANCE MEASURES | |||||||||||||||||||||||||||||
| Return on average assets | 0.95 | % | 0.89 | % | 0.65 | % | 0.87 | % | 0.43 | % | |||||||||||||||||||
| Return on average equity | 8.25 | % | 7.20 | % | 5.38 | % | 7.34 | % | 3.54 | % | |||||||||||||||||||
| Net interest margin | 4.64 | % | 5.04 | % | 4.66 | % | 4.86 | % | 4.42 | % | |||||||||||||||||||
| Efficiency ratio | 84.42 | % | 81.01 | % | 71.73 | % | 87.90 | % | 78.12 | % | |||||||||||||||||||
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