Tandem Fund assists social enterprises in getting financing
TANDEM Fund calls itself a “patient investor” to social enterprises.
“For all their benefits, social enterprises find it difficult to obtain financing,” its website reads.
“On one hand, they generate returns that are too low for banks of traditional investors. On the other, they are often ineligible for foundation money as for-profit enterprises.
“Our role is to fill that gap. We act as a patient investor, providing capital to social enterprises that wouldn’t otherwise be able to gain investment.”
The venture fund, says its chief operating officer Kal Joffres, is the only one in Malaysia that invests exclusively in social enterprises.
As a not-for-profit fund, it differs from a conventional investment firm in that the returns from its investees are recycled into other social enterprises, rather than paid back as a dividend to shareholders.
A native Canadian, Joffres was a strategy consultant to non-profits and United Nations agencies prior to joining Tandem Fund.
The business and philosophy graduate from McGill University moved to Malaysia after helping a client here to start a social venture fund, which became Tandem Fund.
The fund has two sources of capital: the income from its subsidiary Tandemic, a social media consultancy, and a major banking group in Malaysia, who was the client that hired Joffres.
Tandemic – which has worked with consumer brands and government agencies – helps build social movements by organising communities around causes using social media and on-ground events.
“We started Tandemic because we thought some of our skills would be useful for companies and brands. The way we see it is a lot of organisations that are interested in social media aren’t doing it very well.
“They tell people, Here’s our latest deal, follow us on Twitter’, which is not effective. We try to engage people around causes they care about, we build communities around causes,” Joffres quips.
A portion of the Tandemic’s profit is used to finance Tandem Fund’s more experimental social enterprises.
On the second source, Joffres points out that the fund does not receive any cash for investment but rather acts as a conduit to identify social enterprises that meet several criteria, including financial sustainability and social impact. It is the bank that invests directly in the social enterprises, he says.
The social enterprises that are at a mature stage and can turn in a profit are put under Tandem Fund’s management, while the ones that more closely resemble a non-profit are directed to the bank’s philanthropic arm.
Tandem Fund has four projects under its belt: Design Change, Do Something Good, Sols24/7, and a yet unnamed mobile healthcare unit that aims to deliver medical care via waterways, especially in Sarawak.
Besides funding social enterprises, it helps streamline their operations, for example by customising a set of performance measures for each company.
On the challenges faced by fledgeling social enterprises, Joffres says this includes profitability, management skills, market access, and talent.
“A lot of social enterprises in Malaysia haven’t figured out how to make money yet. There’s still work to be done on the business model.
“They also tend to have very thin middle management. There are very passionate people running them, but it’s also important to have operational people in place to make sure things run smoothly,” he elaborates.
The country’s geography, he adds, can also be a hindrance as the people who need assistance are often deep in remote areas.
Disorganisation is another thing. “It’s easier to work with communities that are internally organised, but these are limited,” Joffres says.
“When you have one player that tries to do too many things along the value chain, instead of having a few to help you along the line, your risk increases. This is especially so if you are a start-up.”
In addition, he notes that there are talent acquisition issues in the sector, but insists that “just because you work for a social enterprise doesn’t mean you don’t get paid as well (as other companies)”. Some social enterprises do pay competitively, he says.
Nonetheless, he adds that “people love the fact they are working for social missions” in social enterprises.
“For the most part, it isn’t easy to get talent in any sector. We have a really passionate team and they get to pursue causes they’re interested in,” he says.
Joffres thinks that interest in the sector is growing among the youth and urbanites.
“If you have a strong social dimension you have an edge over companies that don’t,” he says.
“For instance, people don’t buy Body Shop products only because they’re good products, but also because of the social impact (they have). People who have spending power care about this stuff.”
Related Stories:
The rise of social enterprises
Creating an impact
SEA says some local enterprises are ready for investors
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2012年2月25日星期六
2012年2月24日星期五
A lesson on student loans
A lesson on student loans
Student Financial Education Services presents students with advice for dealing with loans.
Student Financial Education Services presents students with advice for dealing with loans.
by STUDENT FINANCIAL EDUCATION SERVICES
This article originally appeared in The Tiger on February 24, 2012 | PRINT
Understanding Your Student Loans
The majority of college students have them: student loans. Student loans have increased in popularity in recent years, mostly due to the increasing tuition rates seen across the country. As you near the end of your tenure here at Clemson, there are a few things to keep in mind that will better prepare you to deal with your student loans.
Where do I find my loans?
If you are like many students, you remember receiving the many pieces of mail over the past four years detailing your loans, but now you cannot seem to find the information. You most likely know your loans by the types of loans they are, like Stafford Loan, Perkins Loan and others. These loans are not all made by one company, but are sold off and serviced by a wide variety.
There is an easy-to-use resource to help locate all of your student loans and who they are owned or serviced by. The website to help you locate your student loans is http://www.nslds.ed.gov/nslds_SA/.
If you have private loans, such as those often made by banks or financial companies such as Discover, Citi, Bank of America or others, you may need to contact that financial institution directly, as their information is sometimes not located in the online database.
How do I pay my loans?
Once you graduate, you should be proactive about finding out when you need to start paying your student loans back.
Graduating from college can be a hectic time, and with all the address changes that you may be going through, it’s easy for mail to get misplaced or sent to the wrong address. It is the responsibility of the borrower, which would be you, to make contact with the owner or servicer of your loan(s) in order to find out when payments begin.
The owner or servicer of your loan will most likely offer you several options for repaying your loans, although not all companies offer these options, and some companies may offer more options. Here are a few basic options:
Standard Repayment: Think of this payment option as a standard loan, you make fixed payments that do not change from month to month for the standard repayment period (which is typically 10 years).
Extended Repayment: This payment option is similar to the standard payment option, except the payment period (which is the time it takes to pay back the loan) will be longer than the standard period. This type of repayment plan may be beneficial to those who have extremely large amounts of student loans and cannot afford the monthly payment under the standard repayment plan.
Graduated Repayment: A graduated repayment plan offers the advantage of allowing you to make lower monthly payments right when you get out of school with the monthly payment increasing every set period of time (such as every two or three years). This type of repayment plan is based on the ideal that your income will increase over time.
Income Dependent Repayment: This payment plan is available in certain government loan situations and allows the borrower to pay a certain percentage of their income toward the loan until the loan is paid off or until a time limit of 25 years is reached. If the time limit of 25 years is reached, the government will forgive the remaining balance on the debt, although tax implications may apply.
Although these are just a few of the standard payment options, it is important to keep your current situation in mind when determining which payment plan is right for you. It is also important to think of the payment plan in terms of which will cost you the most in interest, as opposed to those repayment plans that will accrue the least amount of interest. Students are responsible for verifying the information in this article prior to making financial decisions.
If you would like additional information on student loan payment plans or help understanding your student loan situation, please visit the Student Financial Education Office located in The Union, Office 805. You can set up an appointment by emailing us at sfes1@clemson.edu or calling us at (864) 656-7337.
Views: 32
View the discussion thread.
http://tourism9.com/ http://vkins.com/
The majority of college students have them: student loans. Student loans have increased in popularity in recent years, mostly due to the increasing tuition rates seen across the country. As you near the end of your tenure here at Clemson, there are a few things to keep in mind that will better prepare you to deal with your student loans.
Where do I find my loans?
If you are like many students, you remember receiving the many pieces of mail over the past four years detailing your loans, but now you cannot seem to find the information. You most likely know your loans by the types of loans they are, like Stafford Loan, Perkins Loan and others. These loans are not all made by one company, but are sold off and serviced by a wide variety.
There is an easy-to-use resource to help locate all of your student loans and who they are owned or serviced by. The website to help you locate your student loans is http://www.nslds.ed.gov/nslds_SA/.
If you have private loans, such as those often made by banks or financial companies such as Discover, Citi, Bank of America or others, you may need to contact that financial institution directly, as their information is sometimes not located in the online database.
How do I pay my loans?
Once you graduate, you should be proactive about finding out when you need to start paying your student loans back.
Graduating from college can be a hectic time, and with all the address changes that you may be going through, it’s easy for mail to get misplaced or sent to the wrong address. It is the responsibility of the borrower, which would be you, to make contact with the owner or servicer of your loan(s) in order to find out when payments begin.
The owner or servicer of your loan will most likely offer you several options for repaying your loans, although not all companies offer these options, and some companies may offer more options. Here are a few basic options:
Standard Repayment: Think of this payment option as a standard loan, you make fixed payments that do not change from month to month for the standard repayment period (which is typically 10 years).
Extended Repayment: This payment option is similar to the standard payment option, except the payment period (which is the time it takes to pay back the loan) will be longer than the standard period. This type of repayment plan may be beneficial to those who have extremely large amounts of student loans and cannot afford the monthly payment under the standard repayment plan.
Graduated Repayment: A graduated repayment plan offers the advantage of allowing you to make lower monthly payments right when you get out of school with the monthly payment increasing every set period of time (such as every two or three years). This type of repayment plan is based on the ideal that your income will increase over time.
Income Dependent Repayment: This payment plan is available in certain government loan situations and allows the borrower to pay a certain percentage of their income toward the loan until the loan is paid off or until a time limit of 25 years is reached. If the time limit of 25 years is reached, the government will forgive the remaining balance on the debt, although tax implications may apply.
Although these are just a few of the standard payment options, it is important to keep your current situation in mind when determining which payment plan is right for you. It is also important to think of the payment plan in terms of which will cost you the most in interest, as opposed to those repayment plans that will accrue the least amount of interest. Students are responsible for verifying the information in this article prior to making financial decisions.
If you would like additional information on student loan payment plans or help understanding your student loan situation, please visit the Student Financial Education Office located in The Union, Office 805. You can set up an appointment by emailing us at sfes1@clemson.edu or calling us at (864) 656-7337.
Views: 32
View the discussion thread.
http://tourism9.com/ http://vkins.com/
2012年2月13日星期一
Marin Software Raises $30 Million Funding
SAN FRANCISCO, CA–(Marketwire -02/13/12)- According to eMarketer, by 2015 advertisers will spend $132.1 billion annually for online advertising. Advertisers are increasing their investment in online advertising across multiple channels to drive greater lead generation, customer acquisition, and revenue. This activity is fueling the expanding adoption of Marin Software’s ad management and optimization platform. During the last year, Marin nearly doubled its customer base to 1,500 as well as the amount of annual spend managed on its platform to $3.5 billion. In the wake of Marin’s success, Asia investment company Temasek led a $30 million round of funding along with SAP Ventures. Joining the new investors in this oversubscribed round were existing Marin venture investors Benchmark Capital, Crosslink Capital, DAG Ventures, and Triangle Peak Partners.
Following Marin Software‘s year of rapid international expansion, customer growth, and product innovation, and the closing of the recent financing, Frank van Veenendaal, President of Worldwide Sales and Services at salesforce.com, has joined Marin Software’s Board of Directors.
Marin Software’s Dramatic Growth:
http://tourism9.cm/ http://vkins.com/
About Temasek
About SAP Ventures
About Frank van Veenendaal
Follow Marin Software on Twitter
About Temasek:
Incorporated in 1974, Temasek is an Asia investment company headquartered in Singapore. Supported by 12 affiliates and offices in Asia and Latin America, Temasek owns a diversified S$193 billion portfolio as at 31 March 2011, concentrated principally in Singapore, Asia and growth markets. Temasek’s investment themes centre on Transforming Economies, Growing Middle Income Populations, Deepening Comparative Advantages and Emerging Champions. Its portfolio covers a broad spectrum of industries: financial services; transportation & industrials; telecommunications, media & technology; life sciences, consumer & real estate; energy & resources. Total shareholder return for Temasek since its inception in 1974 has been a healthy 17% compounded annually. It has a corporate credit rating of AAA/Aaa from rating agencies Standard & Poor’s and Moody’s respectively. For further information on Temasek, please visit www.temasek.com.sg.
About SAP Ventures:SAP Ventures is an independent investment firm affiliated with SAP AG (NYSE: SAP – News), the global market leader in enterprise application software, and we leverage our relationships with SAP and its global ecosystem for the benefit of portfolio companies. We make growth equity and later-stage investments in market-leading technology companies across North America, Europe, and key emerging markets. Over the last 15 years, SAP Ventures has supported more than 100 companies across five continents. Past investments include Commerce One, Endeca, Greenplum, MySQL, Red Hat, and WebEx. Current portfolio companies include Alfresco, Alteryx, Control4, LinkedIn, Lithium, OnDeck, OpenX, SAVO, Spring Wireless, Tealeaf, Tremor Media, and Zend. For more information on SAP Ventures, please visit www.sapventures.com.
About Marin Software:Marin Software is a leading provider of online advertising management solutions, offering an integrated platform for managing search, social, display, and mobile marketing. The company provides solutions for advertisers and agencies, enabling them to improve financial performance, save time, and make better decisions. Marin Enterprise, the company’s flagship product, addresses the needs of online marketers spending at least $100,000 per month on biddable media. Marin Professional delivers the same power and ease of use as Marin Enterprise, through an application designed for marketers spending less than $100,000 per month. Headquartered in San Francisco, with offices worldwide, Marin’s technology powers marketing campaigns for over 1,500 customers managing more than $3.5 billion of annualized ad spend in more than 160 countries. For more information, please visit: http://www.marinsoftware.com.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1884165
Following Marin Software‘s year of rapid international expansion, customer growth, and product innovation, and the closing of the recent financing, Frank van Veenendaal, President of Worldwide Sales and Services at salesforce.com, has joined Marin Software’s Board of Directors.
Marin Software’s Dramatic Growth:
http://tourism9.cm/ http://vkins.com/
- Since its inception in 2006, Marin Software has grown into the premier provider of advertising management solutions worldwide. Marin currently serves clients in 160 countries with 25 currencies, increasing its international footprint in the last year with the opening of offices in Singapore, France, Australia, and Germany.
- More than 1,500 of the world’s leading advertisers and agencies manage $3.5 billion in annualized online ad spend through Marin Software. Within the last few months, Hotels.com, Brookstone, Coupons Inc., Rosetta, and Reprise Media have selected Marin’s platform to manage their search, display and social advertising campaigns. Longstanding Marin customers include iProspect, Neo@Ogilvy, Razorfish, Macy’s, Experian, and University of Phoenix.
- Spurred by increasing demand for its products worldwide, Marin Software hired more than 100 new employees during 2011.
- To date, Marin Software has raised more than $80 million in venture funding. Marin plans to invest this new capital to bolster product development, customer support, and service delivery worldwide.
- Temasek is an Asia investment company headquartered in Singapore, with a diversified S$193 billion portfolio as of March 31, 2011, concentrated principally in Singapore, Asia and growth markets. Through its partnership with Temasek, Marin Software will be able to accelerate its growth across Asia and other emerging markets.
- With the investment from SAP Ventures, which is affiliated with SAP AG, the market leader in enterprise application software, Marin Software will have the opportunity to leverage the experience and resources of SAP and its extensive ecosystem to help further Marin’s business momentum.
- Attracted by Marin Software’s exceptional growth and industry leadership, Frank van Veenendaal, President of Worldwide Sales and Services at salesforce.com, has joined the Marin Software Board of Directors. Van Veenendaal joined salesforce.com when it had less than $20 million in annual revenue and has since led salesforce.com to its current annual sales run rate of more than $2.3 billion.
- van Veenendaal’s extensive experience will prove invaluable as Marin expands its global sales and services programs.
- Marin Software’s Board of Directors includes Chris Lien, Founder and CEO of Marin Software; Paul Auvil, CFO at Proofpoint, Inc.; Bruce Dunlevie, General Partner at Benchmark Capital; and Donald Hutchison, advisor and investor.
- “I am pleased to welcome Temasek and SAP Ventures as investors in Marin Software,” said Christopher Lien, Founder and CEO of Marin Software. “Temasek brings unrivalled experience and capabilities in Asian and emerging markets, which will benefit Marin’s international development. Support from SAP Ventures and relationships with the SAP global ecosystem will further accelerate Marin’s growth around the world.”
- “We are honored to have Frank van Veenendaal join Marin’s Board of Directors, as he has written the global playbook on world-class SaaS sales and services execution during his tenure at salesforce.com,” said Lien. “The entire Marin team looks forward to benefiting from his expertise and counsel as we further develop Marin’s position as the global leader in online advertising management.”
- “Marin Software has built incredible momentum in a short amount of time to become a leading provider of ad management solutions, helping advertisers and agencies wring more ROI out of every ad buy,” said Frank van Veenendaal, President of Worldwide Sales and Services at salesforce.com. “The traction Marin has gained in the global marketplace reminds me of the early days of salesforce.com, and I look forward to working hand-in-hand with the executive team as the company cements its leadership worldwide.”
About Temasek
About SAP Ventures
About Frank van Veenendaal
Follow Marin Software on Twitter
About Temasek:
Incorporated in 1974, Temasek is an Asia investment company headquartered in Singapore. Supported by 12 affiliates and offices in Asia and Latin America, Temasek owns a diversified S$193 billion portfolio as at 31 March 2011, concentrated principally in Singapore, Asia and growth markets. Temasek’s investment themes centre on Transforming Economies, Growing Middle Income Populations, Deepening Comparative Advantages and Emerging Champions. Its portfolio covers a broad spectrum of industries: financial services; transportation & industrials; telecommunications, media & technology; life sciences, consumer & real estate; energy & resources. Total shareholder return for Temasek since its inception in 1974 has been a healthy 17% compounded annually. It has a corporate credit rating of AAA/Aaa from rating agencies Standard & Poor’s and Moody’s respectively. For further information on Temasek, please visit www.temasek.com.sg.
About SAP Ventures:SAP Ventures is an independent investment firm affiliated with SAP AG (NYSE: SAP – News), the global market leader in enterprise application software, and we leverage our relationships with SAP and its global ecosystem for the benefit of portfolio companies. We make growth equity and later-stage investments in market-leading technology companies across North America, Europe, and key emerging markets. Over the last 15 years, SAP Ventures has supported more than 100 companies across five continents. Past investments include Commerce One, Endeca, Greenplum, MySQL, Red Hat, and WebEx. Current portfolio companies include Alfresco, Alteryx, Control4, LinkedIn, Lithium, OnDeck, OpenX, SAVO, Spring Wireless, Tealeaf, Tremor Media, and Zend. For more information on SAP Ventures, please visit www.sapventures.com.
About Marin Software:Marin Software is a leading provider of online advertising management solutions, offering an integrated platform for managing search, social, display, and mobile marketing. The company provides solutions for advertisers and agencies, enabling them to improve financial performance, save time, and make better decisions. Marin Enterprise, the company’s flagship product, addresses the needs of online marketers spending at least $100,000 per month on biddable media. Marin Professional delivers the same power and ease of use as Marin Enterprise, through an application designed for marketers spending less than $100,000 per month. Headquartered in San Francisco, with offices worldwide, Marin’s technology powers marketing campaigns for over 1,500 customers managing more than $3.5 billion of annualized ad spend in more than 160 countries. For more information, please visit: http://www.marinsoftware.com.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1884165
Marin Software Raises $30 Million Funding
SAN FRANCISCO, CA–(Marketwire -02/13/12)- According to eMarketer, by 2015 advertisers will spend $132.1 billion annually for online advertising. Advertisers are increasing their investment in online advertising across multiple channels to drive greater lead generation, customer acquisition, and revenue. This activity is fueling the expanding adoption of Marin Software’s ad management and optimization platform. During the last year, Marin nearly doubled its customer base to 1,500 as well as the amount of annual spend managed on its platform to $3.5 billion. In the wake of Marin’s success, Asia investment company Temasek led a $30 million round of funding along with SAP Ventures. Joining the new investors in this oversubscribed round were existing Marin venture investors Benchmark Capital, Crosslink Capital, DAG Ventures, and Triangle Peak Partners.
Following Marin Software’s year of rapid international expansion, customer growth, and product innovation, and the closing of the recent financing, Frank van Veenendaal, President of Worldwide Sales and Services at salesforce.com, has joined Marin Software’s Board of Directors.
Marin Software’s Dramatic Growth:
http://tourism9.cm/ http://vkins.com/
About Temasek
About SAP Ventures
About Frank van Veenendaal
Follow Marin Software on Twitter
About Temasek:
Incorporated in 1974, Temasek is an Asia investment company headquartered in Singapore. Supported by 12 affiliates and offices in Asia and Latin America, Temasek owns a diversified S$193 billion portfolio as at 31 March 2011, concentrated principally in Singapore, Asia and growth markets. Temasek’s investment themes centre on Transforming Economies, Growing Middle Income Populations, Deepening Comparative Advantages and Emerging Champions. Its portfolio covers a broad spectrum of industries: financial services; transportation & industrials; telecommunications, media & technology; life sciences, consumer & real estate; energy & resources. Total shareholder return for Temasek since its inception in 1974 has been a healthy 17% compounded annually. It has a corporate credit rating of AAA/Aaa from rating agencies Standard & Poor’s and Moody’s respectively. For further information on Temasek, please visit www.temasek.com.sg.
About SAP Ventures:SAP Ventures is an independent investment firm affiliated with SAP AG (NYSE: SAP – News), the global market leader in enterprise application software, and we leverage our relationships with SAP and its global ecosystem for the benefit of portfolio companies. We make growth equity and later-stage investments in market-leading technology companies across North America, Europe, and key emerging markets. Over the last 15 years, SAP Ventures has supported more than 100 companies across five continents. Past investments include Commerce One, Endeca, Greenplum, MySQL, Red Hat, and WebEx. Current portfolio companies include Alfresco, Alteryx, Control4, LinkedIn, Lithium, OnDeck, OpenX, SAVO, Spring Wireless, Tealeaf, Tremor Media, and Zend. For more information on SAP Ventures, please visit www.sapventures.com.
About Marin Software:Marin Software is a leading provider of online advertising management solutions, offering an integrated platform for managing search, social, display, and mobile marketing. The company provides solutions for advertisers and agencies, enabling them to improve financial performance, save time, and make better decisions. Marin Enterprise, the company’s flagship product, addresses the needs of online marketers spending at least $100,000 per month on biddable media. Marin Professional delivers the same power and ease of use as Marin Enterprise, through an application designed for marketers spending less than $100,000 per month. Headquartered in San Francisco, with offices worldwide, Marin’s technology powers marketing campaigns for over 1,500 customers managing more than $3.5 billion of annualized ad spend in more than 160 countries. For more information, please visit: http://www.marinsoftware.com.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1884165
Following Marin Software’s year of rapid international expansion, customer growth, and product innovation, and the closing of the recent financing, Frank van Veenendaal, President of Worldwide Sales and Services at salesforce.com, has joined Marin Software’s Board of Directors.
Marin Software’s Dramatic Growth:
http://tourism9.cm/ http://vkins.com/
- Since its inception in 2006, Marin Software has grown into the premier provider of advertising management solutions worldwide. Marin currently serves clients in 160 countries with 25 currencies, increasing its international footprint in the last year with the opening of offices in Singapore, France, Australia, and Germany.
- More than 1,500 of the world’s leading advertisers and agencies manage $3.5 billion in annualized online ad spend through Marin Software. Within the last few months, Hotels.com, Brookstone, Coupons Inc., Rosetta, and Reprise Media have selected Marin’s platform to manage their search, display and social advertising campaigns. Longstanding Marin customers include iProspect, Neo@Ogilvy, Razorfish, Macy’s, Experian, and University of Phoenix.
- Spurred by increasing demand for its products worldwide, Marin Software hired more than 100 new employees during 2011.
- To date, Marin Software has raised more than $80 million in venture funding. Marin plans to invest this new capital to bolster product development, customer support, and service delivery worldwide.
- Temasek is an Asia investment company headquartered in Singapore, with a diversified S$193 billion portfolio as of March 31, 2011, concentrated principally in Singapore, Asia and growth markets. Through its partnership with Temasek, Marin Software will be able to accelerate its growth across Asia and other emerging markets.
- With the investment from SAP Ventures, which is affiliated with SAP AG, the market leader in enterprise application software, Marin Software will have the opportunity to leverage the experience and resources of SAP and its extensive ecosystem to help further Marin’s business momentum.
- Attracted by Marin Software’s exceptional growth and industry leadership, Frank van Veenendaal, President of Worldwide Sales and Services at salesforce.com, has joined the Marin Software Board of Directors. Van Veenendaal joined salesforce.com when it had less than $20 million in annual revenue and has since led salesforce.com to its current annual sales run rate of more than $2.3 billion.
- van Veenendaal’s extensive experience will prove invaluable as Marin expands its global sales and services programs.
- Marin Software’s Board of Directors includes Chris Lien, Founder and CEO of Marin Software; Paul Auvil, CFO at Proofpoint, Inc.; Bruce Dunlevie, General Partner at Benchmark Capital; and Donald Hutchison, advisor and investor.
- “I am pleased to welcome Temasek and SAP Ventures as investors in Marin Software,” said Christopher Lien, Founder and CEO of Marin Software. “Temasek brings unrivalled experience and capabilities in Asian and emerging markets, which will benefit Marin’s international development. Support from SAP Ventures and relationships with the SAP global ecosystem will further accelerate Marin’s growth around the world.”
- “We are honored to have Frank van Veenendaal join Marin’s Board of Directors, as he has written the global playbook on world-class SaaS sales and services execution during his tenure at salesforce.com,” said Lien. “The entire Marin team looks forward to benefiting from his expertise and counsel as we further develop Marin’s position as the global leader in online advertising management.”
- “Marin Software has built incredible momentum in a short amount of time to become a leading provider of ad management solutions, helping advertisers and agencies wring more ROI out of every ad buy,” said Frank van Veenendaal, President of Worldwide Sales and Services at salesforce.com. “The traction Marin has gained in the global marketplace reminds me of the early days of salesforce.com, and I look forward to working hand-in-hand with the executive team as the company cements its leadership worldwide.”
About Temasek
About SAP Ventures
About Frank van Veenendaal
Follow Marin Software on Twitter
About Temasek:
Incorporated in 1974, Temasek is an Asia investment company headquartered in Singapore. Supported by 12 affiliates and offices in Asia and Latin America, Temasek owns a diversified S$193 billion portfolio as at 31 March 2011, concentrated principally in Singapore, Asia and growth markets. Temasek’s investment themes centre on Transforming Economies, Growing Middle Income Populations, Deepening Comparative Advantages and Emerging Champions. Its portfolio covers a broad spectrum of industries: financial services; transportation & industrials; telecommunications, media & technology; life sciences, consumer & real estate; energy & resources. Total shareholder return for Temasek since its inception in 1974 has been a healthy 17% compounded annually. It has a corporate credit rating of AAA/Aaa from rating agencies Standard & Poor’s and Moody’s respectively. For further information on Temasek, please visit www.temasek.com.sg.
About SAP Ventures:SAP Ventures is an independent investment firm affiliated with SAP AG (NYSE: SAP – News), the global market leader in enterprise application software, and we leverage our relationships with SAP and its global ecosystem for the benefit of portfolio companies. We make growth equity and later-stage investments in market-leading technology companies across North America, Europe, and key emerging markets. Over the last 15 years, SAP Ventures has supported more than 100 companies across five continents. Past investments include Commerce One, Endeca, Greenplum, MySQL, Red Hat, and WebEx. Current portfolio companies include Alfresco, Alteryx, Control4, LinkedIn, Lithium, OnDeck, OpenX, SAVO, Spring Wireless, Tealeaf, Tremor Media, and Zend. For more information on SAP Ventures, please visit www.sapventures.com.
About Marin Software:Marin Software is a leading provider of online advertising management solutions, offering an integrated platform for managing search, social, display, and mobile marketing. The company provides solutions for advertisers and agencies, enabling them to improve financial performance, save time, and make better decisions. Marin Enterprise, the company’s flagship product, addresses the needs of online marketers spending at least $100,000 per month on biddable media. Marin Professional delivers the same power and ease of use as Marin Enterprise, through an application designed for marketers spending less than $100,000 per month. Headquartered in San Francisco, with offices worldwide, Marin’s technology powers marketing campaigns for over 1,500 customers managing more than $3.5 billion of annualized ad spend in more than 160 countries. For more information, please visit: http://www.marinsoftware.com.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1884165
2012年2月6日星期一
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3日星期五
Simon Property Group Reports Fourth Quarter Results, Announces Increase In Quarterly Dividend and Provides 2012 Guidance
INDIANAPOLIS, Feb. 3, 2012 /PRNewswire-FirstCall/ — Simon Property Group, Inc. (the “Company” or “Simon”) (NYSE: SPG – News) today reported results for the quarter and year ended December 31, 2011.
Results for the Quarter
U.S. Operational Statistics(1)
Dividends
Today the Company announced that the Board of Directors declared a quarterly common stock dividend of $0.95 per share, an increase of 5.6% from the previous quarter. This dividend is payable on February 29, 2012 to stockholders of record on February 15, 2012.
The Company also declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred (NYSE: SPGPrJ) Stock of $1.046875 per share, payable on March 30, 2012 to stockholders of record on March 16, 2012.
Acquisitions and Dispositions
During the fourth quarter and subsequent to year-end, the Company completed several property transactions:
Capital Markets
On October 5th, the Company announced that it entered into a new unsecured revolving credit facility that increased the Company’s borrowing capacity to $4.0 billion. This facility, which can be increased to $5.0 billion during its term, will initially mature on October 30, 2015, and can be extended for an additional year to October 30, 2016 at the Company’s sole option. The base interest rate on the Company’s new facility is LIBOR plus 100 basis points.
On November 10th, the Company announced the sale of $1.2 billion of senior unsecured notes in an underwritten public offering by its majority-owned partnership subsidiary, Simon Property Group, L.P. The offering consisted of $500.0 million of 2.800% notes due 2017 and $700.0 million of 4.125% notes due 2021. Net proceeds from the offering were used to partially repay the outstanding U.S. dollar balance of the senior unsecured credit facility and for general business purposes.
Development Activity
In the U.S.
The Company has two new development projects under construction:
In 2011, the Company opened 38 new anchors and big box tenants, aggregating 1.7 million square feet of activity. Approximately 30 anchors and big boxes are currently scheduled to open in 2012 and 2013.
International
On December 8th, the Company completed the 90,000 square foot expansion of Ami Premium Outlets in Ibaraki Prefecture, Japan. The expansion was 100% leased at opening. The Company owns a 40% interest in this project.
The grand opening of Johor Premium Outlets, the Company’s first Premium Outlet Center® in Southeast Asia, was held on December 11th. The center encompasses 190,000 square feet of gross leasable area featuring 80 stores and is strategically located in Johor, Malaysia. Johor Premium Outlets is close to Senai Airport and less than an hour’s drive from the city center of Singapore and about three hours from Kuala Lumpur. The center was 100% leased at opening. The Company owns the property in a 50/50 partnership with Genting Berhad.
Today marks the groundbreaking for Busan Premium Outlets, a 240,000 square foot upscale outlet center that will serve southeastern Korea, including the cities of Busan, Ulsan and Daegu, as well as local and overseas visitors. The Company owns a 50% interest in this project, which will be its third Premium Outlet Center in Korea.
2012 Guidance
The Company estimates that FFO will be within a range of $7.20 to $7.30 per diluted share for the year ending December 31, 2012, and diluted net income will be within a range of $3.28 to $3.38 per share.
The following table provides the reconciliation of the range of estimated diluted net income available to common stockholders per share to estimated diluted FFO per share.
The 2012 guidance reflects management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, capital spend on new and redevelopment activities, and the earnings impact of the events referenced in this release and previously disclosed. The guidance also reflects management’s view of future capital market conditions, which is generally consistent with the current forward rates for LIBOR and U.S. Treasury bonds. The estimates do not include possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, possible capital markets activity or possible future impairment charges. The guidance takes into account the impact of all transactions that have already occurred, including the initial FFO dilution from the sale of the Company’s 49% interest in GCI. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense and any gains or losses associated with disposition activity. By definition, FFO does not include real estate-related depreciation and amortization or gains or losses resulting from the sale of, or impairment charges relating to, previously depreciated operating properties. This guidance is a forward-looking statement and is subject to the risks and other factors described elsewhere in this release.
Conference Call
The Company will provide an online simulcast of its quarterly conference call at www.simon.com (Investors tab), www.earnings.com, and www.streetevents.com. To listen to the live call, please go to any of these websites at least fifteen minutes prior to the call to register, download and install any necessary audio software. The call will begin at 11:00 a.m. Eastern Time (New York time) today, February 3, 2012. An online replay will be available for approximately 90 days at www.simon.com, www.earnings.com, and www.streetevents.com. A fully searchable podcast of the conference call will also be available at www.REITcafe.com.
Supplemental Materials and Website
The Company has prepared a supplemental information package which is available at www.simon.com in the Investors section, Financial Information tab. It has also been furnished to the SEC as part of a current report on Form 8-K. If you wish to receive a copy via mail or email, please call 800-461-3439.
We routinely post important information for investors on our website, www.simon.com, in the “Investors” section. We intend to use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Non-GAAP Financial Measures
This press release includes FFO, FFO as adjusted and comparable property net operating income growth, which are adjusted from financial performance measures defined by accounting principles generally accepted in the United States (“GAAP”). Reconciliations of these measures to the most directly comparable GAAP measures are included within this press release or the Company’s supplemental information package. FFO and comparable property net operating income growth are financial performance measures widely used in the REIT industry.
Forward-Looking Statements
Certain statements made in this press release may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that our expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: the Company’s ability to meet debt service requirements, the availability and terms of financing, changes in the Company’s credit rating, changes in market rates of interest and foreign exchange rates for foreign currencies, changes in value of investments in foreign entities, the ability to hedge interest rate risk, risks associated with the acquisition, development, expansion, leasing and management of properties, general risks related to retail real estate, the liquidity of real estate investments, environmental liabilities, international, national, regional and local economic climates, changes in market rental rates, trends in the retail industry, relationships with anchor tenants, the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, risks relating to joint venture properties, costs of common area maintenance, intensely competitive market environment in the retail industry, risks related to international activities, insurance costs and coverage, terrorist activities, changes in economic and market conditions and maintenance of our status as a real estate investment trust. The Company discusses these and other risks and uncertainties under the heading “Risk Factors” in its annual and quarterly periodic reports filed with the SEC. The Company may update that discussion in its periodic reports, but otherwise the Company undertakes no duty or obligation to update or revise these forwardlooking statements, whether as a result of new information, future developments, or otherwise.
Simon Property Group
Simon Property Group, Inc. is an S&P 500 company and the largest real estate company in the U.S. The Company currently owns or has an interest in 337 retail real estate properties comprising 245 million square feet in North America and Asia. Simon Property Group is headquartered in Indianapolis, Indiana and employs more than 5,000 people worldwide. The Company’s common stock is publicly traded on the NYSE under the symbol SPG. For further information, visit the Simon Property Group website at www.simon.com.
Results for the Quarter
- Net income attributable to common stockholders was $362.9 million, or $1.24 per diluted share, as compared to $217.9 million, or $0.74 per diluted share, in the prior year period. The increase on a per share basis was 67.6%.
- Funds from Operations (“FFO”) was $678.9 million, or $1.91 per diluted share, as compared to $638.7 million, or $1.80 per diluted share, in the prior year period. The increase on a per share basis was 6.1%.
- Net income attributable to common stockholders was $1.021 billion, or $3.48 per diluted share, as compared to $610.4 million, or $2.10 per diluted share, in the prior year. The increase on a per share basis was 65.7%.
- FFO was $2.439 billion, or $6.89 per diluted share, as compared to $1.770 billion, or $5.03 per diluted share, in the prior year. The increase on a per share basis was 37.0%. 2010 FFO as adjusted for debt extinguishment charges was $2.121 billion or $6.03 per diluted share. The increase on an as adjusted per share basis was 14.3%.
U.S. Operational Statistics(1)
| As of | As of | % | ||
| December 31, 2011 | December 31, 2010 | Increase | ||
| Occupancy(2) | 94.8% | 94.5% | + 30 basis points | |
| Total Sales per Sq. Ft. (3) | $536 | $484 | 10.7% | |
| Average Rent per Sq. Ft. (2) | $39.42 | $37.77 | 4.4% | |
| (1) Combined information for U.S. regional malls and U.S. Premium Outlets, including the Prime portfolio. Prior period amounts have been restated to include Prime. Does not include information for properties owned by SPG-FCM (the Mills portfolio). (2) Represents mall stores in regional malls and all owned gross leasable area in Premium Outlets. (3) Rolling 12 month sales per square foot for mall stores less than 10,000 square feet in regional malls and all owned gross leasable area in Premium Outlets. | ||||
Today the Company announced that the Board of Directors declared a quarterly common stock dividend of $0.95 per share, an increase of 5.6% from the previous quarter. This dividend is payable on February 29, 2012 to stockholders of record on February 15, 2012.
The Company also declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred (NYSE: SPGPrJ) Stock of $1.046875 per share, payable on March 30, 2012 to stockholders of record on March 16, 2012.
Acquisitions and Dispositions
During the fourth quarter and subsequent to year-end, the Company completed several property transactions:
- Exchanged its 50% ownership interests in six malls and one community center with the Macerich Company for their 50% ownership interests in five malls and one community center. No cash was exchanged other than customary net working capital adjustments. As a result of the transaction, Simon owns 100% of Empire Mall, Lindale Mall, Mesa Mall, Rushmore Mall, Southern Hills Mall and Empire East, and the Macerich Company owns 100% of Eastland Mall, Lake Square Mall, Northpark Mall, South Ridge Mall, Southpark Mall, Valley Mall and Eastland Convenience Center.
- Disposed of its interests in three properties: Gwinnett Place, Factory Merchants Branson and Crystal River Mall.
- Acquired an additional 25% ownership interest in Del Amo Fashion Center, increasing its ownership interest to 50%.
- Sold its 49% interest in Gallerie Commerciali Italia (“GCI”) in the first quarter of 2012. As a result of this transaction, the Company no longer owns an interest in any assets in Italy.
Capital Markets
On October 5th, the Company announced that it entered into a new unsecured revolving credit facility that increased the Company’s borrowing capacity to $4.0 billion. This facility, which can be increased to $5.0 billion during its term, will initially mature on October 30, 2015, and can be extended for an additional year to October 30, 2016 at the Company’s sole option. The base interest rate on the Company’s new facility is LIBOR plus 100 basis points.
On November 10th, the Company announced the sale of $1.2 billion of senior unsecured notes in an underwritten public offering by its majority-owned partnership subsidiary, Simon Property Group, L.P. The offering consisted of $500.0 million of 2.800% notes due 2017 and $700.0 million of 4.125% notes due 2021. Net proceeds from the offering were used to partially repay the outstanding U.S. dollar balance of the senior unsecured credit facility and for general business purposes.
Development Activity
In the U.S.
The Company has two new development projects under construction:
- Merrimack Premium Outlets in Merrimack, New Hampshire – a 409,000 square foot upscale outlet center located one hour north of metropolitan Boston and scheduled to open on June 14, 2012. Over 100 designer and brand outlet stores will be represented at the center. The Company owns 100% of this project.
- Tanger Outlets – Texas City – a 350,000 square foot upscale outlet center located in Texas City, Texas. The center is located approximately 30 miles south of Houston and 20 miles north of Galveston and is scheduled to open in October of 2012. The Company owns a 50% interest in this project.
In 2011, the Company opened 38 new anchors and big box tenants, aggregating 1.7 million square feet of activity. Approximately 30 anchors and big boxes are currently scheduled to open in 2012 and 2013.
International
On December 8th, the Company completed the 90,000 square foot expansion of Ami Premium Outlets in Ibaraki Prefecture, Japan. The expansion was 100% leased at opening. The Company owns a 40% interest in this project.
The grand opening of Johor Premium Outlets, the Company’s first Premium Outlet Center® in Southeast Asia, was held on December 11th. The center encompasses 190,000 square feet of gross leasable area featuring 80 stores and is strategically located in Johor, Malaysia. Johor Premium Outlets is close to Senai Airport and less than an hour’s drive from the city center of Singapore and about three hours from Kuala Lumpur. The center was 100% leased at opening. The Company owns the property in a 50/50 partnership with Genting Berhad.
Today marks the groundbreaking for Busan Premium Outlets, a 240,000 square foot upscale outlet center that will serve southeastern Korea, including the cities of Busan, Ulsan and Daegu, as well as local and overseas visitors. The Company owns a 50% interest in this project, which will be its third Premium Outlet Center in Korea.
2012 Guidance
The Company estimates that FFO will be within a range of $7.20 to $7.30 per diluted share for the year ending December 31, 2012, and diluted net income will be within a range of $3.28 to $3.38 per share.
The following table provides the reconciliation of the range of estimated diluted net income available to common stockholders per share to estimated diluted FFO per share.
| For the year ending December 31, 2012 | |||
| Low | High | ||
| End | End | ||
| Estimated diluted net income available to common stockholders per share | $3.28 | $3.38 | |
| Gain on sale of interest in GCI | (0.08) | (0.08) | |
| Depreciation and amortization including the Company’s share of joint ventures | 4.00 | 4.00 | |
| Estimated diluted FFO per share | $7.20 | $7.30 | |
Conference Call
The Company will provide an online simulcast of its quarterly conference call at www.simon.com (Investors tab), www.earnings.com, and www.streetevents.com. To listen to the live call, please go to any of these websites at least fifteen minutes prior to the call to register, download and install any necessary audio software. The call will begin at 11:00 a.m. Eastern Time (New York time) today, February 3, 2012. An online replay will be available for approximately 90 days at www.simon.com, www.earnings.com, and www.streetevents.com. A fully searchable podcast of the conference call will also be available at www.REITcafe.com.
Supplemental Materials and Website
The Company has prepared a supplemental information package which is available at www.simon.com in the Investors section, Financial Information tab. It has also been furnished to the SEC as part of a current report on Form 8-K. If you wish to receive a copy via mail or email, please call 800-461-3439.
We routinely post important information for investors on our website, www.simon.com, in the “Investors” section. We intend to use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Non-GAAP Financial Measures
This press release includes FFO, FFO as adjusted and comparable property net operating income growth, which are adjusted from financial performance measures defined by accounting principles generally accepted in the United States (“GAAP”). Reconciliations of these measures to the most directly comparable GAAP measures are included within this press release or the Company’s supplemental information package. FFO and comparable property net operating income growth are financial performance measures widely used in the REIT industry.
Forward-Looking Statements
Certain statements made in this press release may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that our expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: the Company’s ability to meet debt service requirements, the availability and terms of financing, changes in the Company’s credit rating, changes in market rates of interest and foreign exchange rates for foreign currencies, changes in value of investments in foreign entities, the ability to hedge interest rate risk, risks associated with the acquisition, development, expansion, leasing and management of properties, general risks related to retail real estate, the liquidity of real estate investments, environmental liabilities, international, national, regional and local economic climates, changes in market rental rates, trends in the retail industry, relationships with anchor tenants, the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, risks relating to joint venture properties, costs of common area maintenance, intensely competitive market environment in the retail industry, risks related to international activities, insurance costs and coverage, terrorist activities, changes in economic and market conditions and maintenance of our status as a real estate investment trust. The Company discusses these and other risks and uncertainties under the heading “Risk Factors” in its annual and quarterly periodic reports filed with the SEC. The Company may update that discussion in its periodic reports, but otherwise the Company undertakes no duty or obligation to update or revise these forwardlooking statements, whether as a result of new information, future developments, or otherwise.
Simon Property Group
Simon Property Group, Inc. is an S&P 500 company and the largest real estate company in the U.S. The Company currently owns or has an interest in 337 retail real estate properties comprising 245 million square feet in North America and Asia. Simon Property Group is headquartered in Indianapolis, Indiana and employs more than 5,000 people worldwide. The Company’s common stock is publicly traded on the NYSE under the symbol SPG. For further information, visit the Simon Property Group website at www.simon.com.
| Simon Property Group, Inc. and Subsidiaries | ||||||||
| Unaudited Consolidated Statements of Operations | ||||||||
| (Dollars in thousands, except per share amounts) | ||||||||
| For the Three Months | For the Twelve Months | |||||||
| Ended December 31, | Ended December 31, | |||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| REVENUE: | ||||||||
| Minimum rent | $ 706,099 | $ 672,606 | $ 2,664,724 | $ 2,429,519 | ||||
| Overage rent | 65,068 | 56,668 | 140,842 | 110,621 | ||||
| Tenant reimbursements | 315,916 | 298,146 | 1,177,269 | 1,083,780 | ||||
| Management fees and other revenues | 35,009 | 34,310 | 128,010 | 121,207 | ||||
| Other income | 49,245 | 57,988 | 195,587 | 212,503 | ||||
| Total revenue | 1,171,337 | 1,119,718 | 4,306,432 | 3,957,630 | ||||
| EXPENSES: | ||||||||
| Property operating | 105,559 | 98,615 | 436,571 | 414,264 | ||||
| Depreciation and amortization | 277,536 | 276,418 | 1,065,946 | 982,820 | ||||
| Real estate taxes | 95,803 | 90,893 | 369,755 | 345,960 | ||||
| Repairs and maintenance | 33,539 | 37,875 | 113,496 | 102,425 | ||||
| Advertising and promotion | 34,383 | 34,641 | 107,002 | 97,194 | ||||
| Provision for credit losses | 3,325 | 5,190 | 6,505 | 3,130 | ||||
| Home and regional office costs | 37,583 | 36,615 | 128,618 | 109,314 | ||||
| General and administrative | 14,705 | 5,358 | 46,319 | 21,267 | ||||
| Transaction expenses | - | 6,418 | - | 68,972 | ||||
| Other | 35,823 | 23,633 | 97,078 | 68,045 | ||||
| Total operating expenses | 638,256 | 615,656 | 2,371,290 | 2,213,391 | ||||
| OPERATING INCOME | 533,081 | 504,062 | 1,935,142 | 1,744,239 | ||||
| Interest expense | (246,507) | (252,405) | (983,526) | (1,027,091) | ||||
| Loss on extinguishment of debt | - | - | - | (350,688) | ||||
| Income tax expense of taxable REIT subsidiaries | (877) | (2,291) | (3,583) | (1,734) | ||||
| Income from unconsolidated entities | 31,677 | 25,192 | 81,238 | 75,921 | ||||
| Impairment charge from investments in unconsolidated entities | - | (8,169) | - | (8,169) | ||||
| Gain upon acquisition of controlling interests, and on sale or disposal | ||||||||
| of assets and interests in unconsolidated entities, net | 124,557 | 687 | 216,629 | 321,036 | ||||
| CONSOLIDATED NET INCOME | 441,931 | 267,076 | 1,245,900 | 753,514 | ||||
| Net income attributable to noncontrolling interests | 78,167 | 48,318 | 221,101 | 136,476 | ||||
| Preferred dividends | 834 | 835 | 3,337 | 6,614 | ||||
| NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 362,930 | $ 217,923 | $ 1,021,462 | $ 610,424 | ||||
| BASIC EARNINGS PER COMMON SHARE: | ||||||||
| Net income attributable to common stockholders | $ 1.24 | $ 0.74 | $ 3.48 | $ 2.10 | ||||
| DILUTED EARNINGS PER COMMON SHARE: | ||||||||
| Net income attributable to common stockholders | $ 1.24 | $ 0.74 | $ 3.48 | $ 2.10 | ||||
| Simon Property Group, Inc. and Subsidiaries | ||||
| Unaudited Consolidated Balance Sheets | ||||
| (Dollars in thousands, except share amounts) | ||||
| December 31, | December 31, | |||
| 2011 | 2010 | |||
| ASSETS: | ||||
| Investment properties at cost | $ 29,657,046 | $ 27,508,735 | ||
| Less – accumulated depreciation | 8,388,130 | 7,711,304 | ||
| 21,268,916 | 19,797,431 | |||
| Cash and cash equivalents | 798,650 | 796,718 | ||
| Tenant receivables and accrued revenue, net | 486,731 | 426,736 | ||
| Investment in unconsolidated entities, at equity | 1,378,084 | 1,390,105 | ||
| Deferred costs and other assets | 1,633,544 | 1,795,439 | ||
| Notes receivable from related party | 651,000 | 651,000 | ||
| Total assets | $ 26,216,925 | $ 24,857,429 | ||
| LIABILITIES: | ||||
| Mortgages and other indebtedness | $ 18,446,440 | $ 17,473,760 | ||
| Accounts payable, accrued expenses, intangibles, and deferred revenues | 1,091,712 | 993,738 | ||
| Cash distributions and losses in partnerships and joint ventures, at equity | 695,569 | 485,855 | ||
| Other liabilities and accrued dividends | 170,971 | 184,855 | ||
| Total liabilities | 20,404,692 | 19,138,208 | ||
| Commitments and contingencies | ||||
| Limited partners’ preferred interest in the Operating Partnership and noncontrolling | ||||
| redeemable interests in properties | 267,945 | 85,469 | ||
| EQUITY: | ||||
| Stockholders’ equity | ||||
| Capital stock (850,000,000 total shares authorized, $ 0.0001 par value, 238,000,000 | ||||
| shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ||||
| Series J 8 3/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, | ||||
| 796,948 issued and outstanding with a liquidation value of $ 39,847 | 45,047 | 45,375 | ||
| Common stock, $ 0.0001 par value, 511,990,000 shares authorized, 297,725,698 and | ||||
| 296,957,360 issued and outstanding, respectively | 30 | 30 | ||
| Class B common stock, $ 0.0001 par value, 10,000 shares authorized, 8,000 | ||||
| issued and outstanding | - | - | ||
| Capital in excess of par value | 8,103,133 | 8,059,852 | ||
| Accumulated deficit | (3,251,740) | (3,114,571) | ||
| Accumulated other comprehensive (loss) income | (94,263) | 6,530 | ||
| Common stock held in treasury at cost, 3,877,448 and 4,003,451 shares, respectively | (152,541) | (166,436) | ||
| Total stockholder’s equity | 4,649,666 | 4,830,780 | ||
| Noncontrolling interests | 894,622 | 802,972 | ||
| Total equity | 5,544,288 | 5,633,752 | ||
| Total liabilities and equity | $ 26,216,925 | $ 24,857,429 | ||
| Simon Property Group, Inc. and Subsidiaries | ||||||||
| Unaudited Joint Venture Statements of Operations | ||||||||
| (Dollars in thousands) | ||||||||
| For the Three Months | For the Twelve Months | |||||||
| Ended December 31, | Ended December 31, | |||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| Revenue: | ||||||||
| Minimum rent | $ 482,040 | $ 462,853 | $ 1,844,774 | $ 1,810,581 | ||||
| Overage rent | 59,083 | 50,052 | 161,993 | 143,018 | ||||
| Tenant reimbursements | 221,315 | 229,498 | 862,211 | 870,555 | ||||
| Other income | 48,813 | 44,283 | 175,430 | 214,728 | ||||
| Total revenue | 811,251 | 786,686 | 3,044,408 | 3,038,882 | ||||
| Operating Expenses: | ||||||||
| Property operating | 157,020 | 148,462 | 602,989 | 595,733 | ||||
| Depreciation and amortization | 186,851 | 190,918 | 737,865 | 752,014 | ||||
| Real estate taxes | 52,616 | 56,356 | 220,955 | 230,326 | ||||
| Repairs and maintenance | 21,907 | 25,508 | 76,258 | 92,490 | ||||
| Advertising and promotion | 15,605 | 16,120 | 57,703 | 55,952 | ||||
| Provision for credit losses | 2,227 | 2,993 | 8,648 | 3,934 | ||||
| Other | 62,417 | 54,877 | 227,703 | 209,635 | ||||
| Total operating expenses | 498,643 | 495,234 | 1,932,121 | 1,940,084 | ||||
| Operating Income | 312,608 | 291,452 | 1,112,287 | 1,098,798 | ||||
| Interest expense | (206,961) | (201,605) | (813,433) | (812,886) | ||||
| (Loss) Income from unconsolidated entities | (857) | 528 | (4,644) | (840) | ||||
| Impairment charge from investments in unconsolidated entities | - | (16,671) | - | (16,671) | ||||
| Income from Continuing Operations | $ 104,790 | $ 73,704 | $ 294,210 | $ 268,401 | ||||
| Income from discontinued joint venture interests | 6,210 | 20,583 | 48,154 | 63,108 | ||||
| Gain (loss) on sale or disposal of assets and interests in | ||||||||
| unconsolidated entities, net | 332,078 | (85) | 347,640 | 39,676 | ||||
| Net Income | $ 443,078 | $ 94,202 | $ 690,004 | $ 371,185 | ||||
| Third-Party Investors’ Share of Net Income | $ 232,643 | $ 64,568 | $ 384,384 | $ 234,799 | ||||
| Our Share of Net Income | $ 210,435 | $ 29,634 | $ 305,620 | $ 136,386 | ||||
| Amortization of Excess Investment (A) | (12,730) | (12,653) | (50,562) | (48,329) | ||||
| Our Share of (Gain) Loss on Sale or Disposal of Assets and Interests | ||||||||
| in Unconsolidated Entities, net | (166,028) | 42 | (173,820) | (20,305) | ||||
| Our Share of Impairment Charge from Investments in | ||||||||
| Unconsolidated Entities | - | 8,169 | - | 8,169 | ||||
| Income from Unconsolidated Entities | $ 31,677 | $ 25,192 | $ 81,238 | $ 75,921 | ||||
| Simon Property Group, Inc. and Subsidiaries | ||||
| Unaudited Joint Venture Balance Sheets | ||||
| (Dollars in thousands) | ||||
| December 31, | December 31, | |||
| 2011 | 2010 | |||
| Assets: | ||||
| Investment properties, at cost | $ 20,481,657 | $ 21,236,594 | ||
| Less – accumulated depreciation | 5,264,565 | 5,126,116 | ||
| 15,217,092 | 16,110,478 | |||
| Cash and cash equivalents | 806,895 | 802,025 | ||
| Tenant receivables and accrued revenue, net | 359,208 | 353,719 | ||
| Investment in unconsolidated entities, at equity | 133,576 | 158,116 | ||
| Deferred costs and other assets | 526,101 | 525,024 | ||
| Total assets | $ 17,042,872 | $ 17,949,362 | ||
| Liabilities and Partners’ (Deficit) Equity: | ||||
| Mortgages and other indebtedness | $ 15,582,321 | $ 15,937,404 | ||
| Accounts payable, accrued expenses, intangibles, and deferred revenue | 775,733 | 748,245 | ||
| Other liabilities | 981,711 | 961,284 | ||
| Total liabilities | 17,339,765 | 17,646,933 | ||
| Preferred units | 67,450 | 67,450 | ||
| Partners’ (deficit) equity | (364,343) | 234,979 | ||
| Total liabilities and partners’ equity | $ 17,042,872 | $ 17,949,362 | ||
| Our Share of: | ||||
| Partners’ (deficit) equity | $ (32,000) | $ 146,578 | ||
| Add: Excess Investment (A) | 714,515 | 757,672 | ||
| Our net Investment in Joint Ventures | $ 682,515 | $ 904,250 | ||
| Simon Property Group, Inc. and Subsidiaries | ||
| Footnotes to Unaudited Financial Statements | ||
| Notes: | ||
| (A) | Excess investment represents the unamortized difference between the Company’s investment and equity in the underlying net assets of the partnerships and joint ventures. The Company generally amortizes excess investment over the life of the related properties, typically no greater than 40 years, and the amortization is included in income from unconsolidated entities. | |
| Simon Property Group, Inc. and Subsidiaries | |||||||||
| Unaudited Reconciliation of Non-GAAP Financial Measures (1) | |||||||||
| (Amounts in thousands, except per share amounts) | |||||||||
| Reconciliation of Consolidated Net Income to FFO and FFO as Adjusted | |||||||||
| For the Three Months Ended | For the Twelve Months Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||
| Consolidated Net Income (2)(3)(4)(5) | $ 441,931 | $ 267,076 | $ 1,245,900 | $ 753,514 | |||||
| Adjustments to Consolidated Net Income to Arrive at FFO: | |||||||||
| Depreciation and amortization from consolidated | |||||||||
| properties | 270,081 | 272,713 | 1,047,571 | 968,695 | |||||
| Simon’s share of depreciation and amortization from | |||||||||
| unconsolidated entities | 98,009 | 98,048 | 384,367 | 388,565 | |||||
| Impairment charges of depreciable real estate | - | 8,169 | - | 8,169 | |||||
| Gain upon acquisition of controlling interests, and on sale or disposal | |||||||||
| of assets and interests in unconsolidated entities, net | (124,557) | (687) | (216,629) | (321,036) | |||||
| Net income attributable to noncontrolling interest holders in | |||||||||
| properties | (2,679) | (3,298) | (8,559) | (10,640) | |||||
| Noncontrolling interests portion of depreciation and amortization | (2,553) | (1,959) | (8,633) | (7,847) | |||||
| Preferred distributions and dividends | (1,313) | (1,313) | (5,252) | (8,929) | |||||
| FFO of the Operating Partnership | $ 678,919 | $ 638,749 | $ 2,438,765 | $ 1,770,491 | |||||
| Loss on extinguishment of debt | - | - | - | 350,688 | |||||
| FFO as adjusted of the Operating Partnership | $ 678,919 | $ 638,749 | $ 2,438,765 | $ 2,121,179 | |||||
| Diluted net income per share to diluted FFO per share and diluted | |||||||||
| FFO as adjusted per share reconciliation: | |||||||||
| Diluted net income per share | $ 1.24 | $ 0.74 | $ 3.48 | $ 2.10 | |||||
| Depreciation and amortization from consolidated properties | |||||||||
| and Simon’s share of depreciation and amortization from | |||||||||
| unconsolidated entities, net of noncontrolling interests portion of | |||||||||
| depreciation and amortization | 1.02 | 1.04 | 4.02 | 3.86 | |||||
| Impairment charges of depreciable real estate | - | 0.02 | - | 0.02 | |||||
| Gain upon acquisition of controlling interests, and on sale or disposal | |||||||||
| of assets and interests in unconsolidated entities, net | (0.35) | - | (0.61) | (0.92) | |||||
| Impact of additional dilutive securities for FFO per share | - | - | - | (0.03) | |||||
| Diluted FFO per share | $ 1.91 | $ 1.80 | $ 6.89 | $ 5.03 | |||||
| Loss on debt extinguishment | - | - | - | 1.00 | |||||
| Diluted FFO as adjusted per share | $ 1.91 | $ 1.80 | $ 6.89 | $ 6.03 | |||||
| Details for per share calculations: | |||||||||
| FFO of the Operating Partnership | $ 678,919 | $ 638,749 | $ 2,438,765 | $ 1,770,491 | |||||
| Adjustments for dilution calculation: | |||||||||
| Impact of preferred stock and preferred unit conversions and | |||||||||
| option exercises (6) | - | - | - | 3,676 | |||||
| Diluted FFO of the Operating Partnership | 678,919 | 638,749 | 2,438,765 | 1,774,167 | |||||
| Diluted FFO allocable to unitholders | (116,424) | (108,892) | (416,833) | (296,670) | |||||
| Diluted FFO allocable to common stockholders | $ 562,495 | $ 529,857 | $ 2,021,932 | $ 1,477,497 | |||||
| Basic weighted average shares outstanding | 293,822 | 292,931 | 293,504 | 291,076 | |||||
| Adjustments for dilution calculation: | |||||||||
| Effect of stock options | 11 | 230 | 69 | 274 | |||||
| Impact of Series I preferred unit conversion | - | - | - | 238 | |||||
| Impact of Series I preferred stock conversion | - | - | - | 1,749 | |||||
| Diluted weighted average shares outstanding | 293,833 | 293,161 | 293,573 | 293,337 | |||||
| Weighted average limited partnership units outstanding | 60,816 | 60,248 | 60,522 | 58,900 | |||||
| Diluted weighted average shares and units outstanding | 354,649 | 353,409 | 354,095 | 352,237 | |||||
| Basic FFO per Share | $ 1.91 | $ 1.81 | $ 6.89 | $ 5.06 | |||||
| Percent Change | 5.5% | 36.2% | |||||||
| Diluted FFO per Share | $ 1.91 | $ 1.80 | $ 6.89 | $ 5.03 | |||||
| Percent Change | 6.1% | 37.0% | |||||||
| Diluted FFO as adjusted per share | $ 1.91 | $ 1.80 | $ 6.89 | $ 6.03 | |||||
| Percent Change | 6.1% | 14.3% | |||||||
| Simon Property Group, Inc. and Subsidiaries | ||
| Footnotes to Unaudited Reconciliation of Non-GAAP Financial Measures | ||
| Notes: | ||
| (1) | This report contains measures of financial or operating performance that are not specifically defined by accounting principles generally accepted in the United States (“GAAP”), including funds from operations (“FFO”), FFO as adjusted, FFO per share and FFO as adjusted per share. FFO is a performance measure that is standard in the REIT business. We believe FFO provides investors with additional information concerning our operating performance and a basis to compare our performance with those of other REITs. We also use these measures internally to monitor the operating performance of our portfolio. As adjusted measures exclude the effect of certain debt-related charges. We believe these measures provide investors with a basis to compare our current operating performance with previous periods in which we did not have those charges. Our computation of these non-GAAP measures may not be the same as similar measures reported by other REITs. | |
| The Company determines FFO based upon the definition set forth by the National Association of Real Estate Investment Trusts (“NAREIT”). The Company determines FFO to be our share of consolidated net income computed in accordance with GAAP, excluding real estate related depreciation and amortization, excluding gains and losses from extraordinary items, excluding gains and losses from the sales of, or any impairment charges related to, previously depreciated operating properties, plus the allocable portion of FFO of unconsolidated joint ventures based upon economic ownership interest, and all determined on a consistent basis in accordance with GAAP. | ||
| The Company has adopted NAREIT’s clarification of the definition of FFO that requires it to include the effects of nonrecurring items not classified as extraordinary, cumulative effect of accounting changes, or a gain or loss resulting from the sale of, or any impairment charges relating to, previously depreciated operating properties. We include in FFO gains and losses realized from the sale of land, outlot buildings, marketable and non-marketable securities, and investment holdings of non-retail real estate. However, you should understand that FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance, and is not an alternative to cash flows as a measure of liquidity. | ||
| (2) | Includes the Company’s share of gains on land sales of $1.7 million and $2.4 million for the three months ended December 31, 2011 and 2010, respectively, and $6.2 million and $11.8 million for the twelve months ended December 31, 2011 and 2010, respectively. | |
| (3) | Includes the Company’s share of straight-line adjustments to minimum rent of $11.0 million and $8.3 million for the three months ended December 31, 2011 and 2010, respectively, and $37.2 million and $32.1 million for the twelve months ended December 31, 2011 and 2010, respectively. | |
| (4) | Includes the Company’s share of the amortization of fair market value of leases from acquisitions of $5.2 million and $5.1 million for the three months ended December 31, 2011 and 2010, respectively, and $22.9 million and $19.9 million for the twelve months ended December 31, 2011 and 2010, respectively. | |
| (5) | Includes the Company’s share of debt premium amortization of $3.0 million and $3.3 million for the three months ended December 31, 2011 and 2010, respectively, and $10.0 million and $12.7 million for the twelve months ended December 31, 2011 and 2010, respectively. | |
| (6) | Includes dividends and distributions on Series I preferred stock and Series I preferred units. All outstanding shares of Series I preferred stock and Series I preferred units were redeemed on April 16, 2010. http://tourism9.com http://vkins.com/ | |
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