CFS Bancorp, Inc. 707 Ridge Road ● Munster, Indiana 46321 |
October 29, 2009
FOR IMMEDIATE RELEASE
CONTACT: Thomas F. Prisby, Chairman of the Board and Chief Executive Office
219-836-2960
CFS Bancorp, Inc. Announces Third Quarter Results
MUNSTER, IN – October 29, 2009 – CFS Bancorp, Inc. (NASDAQ: CITZ) (the Company), the parent of Citizens Financial Bank (the Bank), today reported a net loss of $4.7 million, or $(0.44) per share for the third quarter of 2009, compared to a net loss of $1.0 million, or $(0.10) per share for the third quarter of 2008. The results for the third quarter of 2009 were impacted significantly by a provision for loan losses of $9.4 million and a $1.3 million valuation allowance on other real estate owned (OREO), which were attributable to the impact of rapid declines in real estate collateral values.
For the nine months ended September 30, 2009, the Company reported a net loss of $2.5 million, or $(0.24) per share, compared to a net loss of $1.6 million or $(0.15) per share for the comparable 2008 period.
Chairman’s Comments
“Our financial results for the quarter were disappointing. Rapid declines in real estate collateral values on nonperforming assets resulted in a significant increase in our provision for loan losses as well as a $1.3 million increase in the valuation allowance on OREO. In addition, higher professional fees related to a shareholder derivative demand and higher FDIC insurance premiums negatively impacted earnings. These factors exceeded reductions in controllable overhead costs, increases in non-interest income, and increases in net interest income attributable to higher net interest margins,” said Thomas F. Prisby, Chairman & CEO.
“Despite indications that the national recession may be ending, the local economy in our northwest Indiana and southwest suburban Chicago market area remains depressed. Most economists are predicting a very gradual recovery. Businesses are continuing to struggle to meet their obligations and the commercial real estate sector is increasingly at risk. Current declines in the real estate collateral values supporting many of the Bank’s non-performing loans and OREO led to material increases in impairments, charge-offs and a write down of the value of OREO during the quarter. These non-performing assets represent a significant drag on earnings for a number of reasons, and our management team is committed to addressing these problem credits in an aggressive, yet prudent, manner within the constraints of current and forecasted market conditions.
“We remain committed to our Strategic Growth and Diversification Plan; however, given that quality asset growth remains elusive in the current environment, management intends to continue to opportunistically reduce costs as appropriate within our longer term Strategic Growth and Diversification Plan,” added Prisby.
CFS Bancorp, Inc. – Page 2 of 8
Progress on Strategic Growth and Diversification Plan
The Company’s Strategic Growth and Diversification Plan is built around four core objectives: decreasing non-performing loans; ensuring costs are appropriate given the Company’s targeted future asset base; growing while diversifying by targeting small and mid-sized business owners for relationship-based banking opportunities; and expanding and deepening the Company’s relationships with its clients by meeting a higher percentage of the clients’ financial service needs.
Progress on the Strategic Growth and Diversification plan has been negatively impacted by the length and severity of the current recession. The current recession started in December 2007, according to the National Bureau of Economic Research (NBER). Even if it had ended, as some economic observers have indicated, early in the third quarter of 2009, the current contraction would represent the longest period of U.S. economic contraction in the post World War II era. For comparison, the average length of the ten prior postwar contraction periods was ten months.
The Company’s ability to achieve targeted earning asset levels has been hampered by current economic and regulatory conditions. Our efforts to attract new business banking clients and deepen relationships with current clients are progressing; however, our successes in this arena have resulted in slower asset and income growth rates than would be achieved in normal economic times. Growth remains a strategic priority, but expectations of future growth are tempered by the reality of the market. Management believes the Company will be able to achieve quality, relationship-based loan growth over time and as the economy recovers.
Net Interest Income
Net interest margin increased five basis points to 3.74% for the third quarter of 2009 from 3.69% for the second quarter of 2009 and 27 basis points from 3.47% for the third quarter of 2008. Net interest income increased to $9.4 million compared to $9.3 million for the second quarter of 2009 and $8.9 million for the third quarter of 2008. Net interest income continues to be positively affected by lower interest rates on interest-bearing deposits and borrowed money due to lower market rates coupled with a decrease in the amortization of the premium on the early extinguishment of Federal Home Loan Bank (FHLB) debt.
Interest income decreased 2.9% to $12.6 million for the third quarter of 2009 compared to $13.0 million for the second quarter of 2009 and 12.4% from $14.4 million for the third quarter of 2008. Interest income was negatively affected during the third quarter of 2009 by an increase in non-performing assets. The decrease from the third quarter of 2008 was due to lower market rates of interest during the third quarter of 2009 coupled with a 9.4% increase in non-performing assets since December 31, 2008.
Interest expense decreased 12.1% to $3.2 million for the third quarter of 2009 from $3.6 million for the second quarter of 2009 and 41.6% from $5.5 million for the third quarter of 2008. Interest expense on deposits was positively affected by disciplined pricing on deposits, including certificates of deposit, as current market interest rates remain lower than 2008. In addition, the amortization of the premium on the early extinguishment of FHLB debt decreased $246,000 from the third quarter of 2008.
CFS Bancorp, Inc. - Page 3 of 8
Non-Interest Income and Non-Interest Expense
Excluding available-for-sale security gains and losses, non-interest income increased $154,000 or 7.2% from the second quarter of 2009 primarily as a result of an increase in service charges and other fees. Non-interest income excluding available-for-sale security gains and losses decreased $341,000, or 13.0%, from the third quarter of 2008 resulting from decreases of $161,000 in service charges and other fees and $131,000 of income on the Company’s bank-owned life insurance policy due to lower interest crediting rates.
Non-interest expense for the third quarter of 2009 increased 3.1% to $10.2 million compared to $9.9 million for the second quarter of 2009 primarily due to a $1.1 million increase in an OREO valuation reserve caused by the decline in its net realizable value. The linked quarter increase in professional fees was $150,000 which was related to a shareholder derivative demand made late in the first quarter of 2009. The Company anticipates professional fees to continue to be higher in 2009 as compared to 2008 because of the derivative demand. Partially offsetting these increases were linked quarter decreases in compensation and employee benefits expense totaling $573,000 due to the adjustment of the Company’s incentive accruals and $492,000 of FDIC insurance from the absence of the special assessment charged in the second quarter of 2009.
Non-interest expense for the third quarter of 2009 increased 18.1% to $ 10.2 million from $8.7 million for the third quarter of 2008. The increase from the 2008 period was primarily a result of increases in nondiscretionary expense items including the aforementioned increase in the valuation reserve for other real estate owned; increased FDIC insurance premiums of $431,000 due to the industry-wide increase in assessment rates for 2009; and increased professional fees of $375,000 which are primarily related to a shareholder derivative demand made late in the first quarter of 2009. The Company incurred professional fee expenses totaling $551,000 for the third quarter of 2009 related to the shareholder derivative demand.
Asset Quality
The provision for losses on loans for the third quarter of 2009 increased to $9.4 million from $713,000 for the second quarter of 2009 and from $1.4 million for the third quarter of 2008. Net charge-offs for the third quarter of 2009 totaled $3.6 million compared to $1.3 million for the second quarter of 2009 and $3.2 million for the third quarter of 2008. Net charge-offs during the third quarter of 2009 included the charge-offs of home equity lines of credit totaling $1.6 million and partial charge-offs of $1.8 million on several collateral dependent non-owner occupied commercial real estate and construction and land development loans. The third quarter provision for losses on loans was also impacted by the increase in impairment reserves of $4.8 million on three hospitality loans and $491,000 on a condominium project.
The allowance for losses on loans totaled $20.8 million at September 30, 2009 compared to $15.6 million at December 31, 2008. The ratio of allowance for losses on loans to total loans increased to 2.78% at September 30, 2009 compared to 2.07% at December 31, 2008. When management determines a non-performing collateral dependent loan has a collateral shortfall, management will immediately charge-off the collateral shortfall. As a result, the Company is not required to maintain an allowance for losses on loans on these loans as the loan balance has already been written down to its net realizable value (fair value less estimated costs to sell the collateral).
CFS Bancorp, Inc. - Page 4 of 8
Balance Sheet
At September 30, 2009, the Company’s total assets were $1.08 billion compared to $1.12 billion at December 31, 2008. Securities available-for-sale totaled $205.9 million at September 30, 2009 compared to $251.3 million at December 31, 2008. The decrease in securities is primarily due to maturities and pay downs coupled with sales activity during 2009. The Company’s loans receivable were relatively stable at $748.5 million at September 30, 2009 compared to $750.0 million at December 31, 2008.
Deposits increased $23.1 million to $847.2 million at September 30, 2009 from $824.1 million at December 31, 2008 resulting from a $31.5 million increase in non-municipal core deposits. Investments in the Company’s branch network, technological infrastructure, human capital, and brand have enhanced its ability to translate existing and new client relationships into deposit growth. Partially offsetting the increase in core deposits was an $11.2 million decrease in time deposits. Total municipal deposits decreased $6.1 million since December 31, 2008 primarily due to seasonal factors. While the Company maintains strong relationships with its municipal clients, and municipal deposits continue to comprise an important funding source, management is lowering its reliance on such funds in anticipation that the recession’s impact on municipalities and other government-related entities will result in lower municipal deposit levels. The Company’s deposits consisted of the following as of the dates indicated:
| | | September 30, | | | December 31, | |
| | | 2009 | | | 2008 | |
| | | (Dollars in thousands) | |
| Core deposits | | $ | 440,683 | | | $ | 409,184 | |
| Certificates of deposit | | | 353,868 | | | | 356,227 | |
Subtotal non-municipal deposits | | | 794,551 | | | | 765,411 | |
| Municipal core deposits | | | 42,024 | | | | 39,221 | |
| Municipal certificates of deposit | | | 10,603 | | | | 19,465 | |
Subtotal municipal deposits | | | 52,627 | | | | 58,686 | |
Total deposits �� | | $ | 847,178 | | | $ | 824,097 | |
The Company’s borrowed money decreased to $105.4 million at September 30, 2009 from $172.9 million at December 31, 2008 as the Company continues to strengthen its balance sheet and enhance its liquidity position. The Company’s borrowed money consisted of the following as of the dates indicated:
| | | September 30, | | | December 31, | |
| | | 2009 | | | 2008 | |
| | | (Dollars in thousands) | |
Short-term variable-rate borrowed money and repurchase agreements | | $ | 18,801 | | | $ | 28,312 | |
| Gross FHLB borrowed money | | | 86,573 | | | | 144,800 | |
| Unamortized deferred premium | | | (17 | ) | | | (175 | ) |
| Total borrowed money | | $ | 105,357 | | | $ | 172,937 | |
Shareholders’ equity at September 30, 2009 decreased to $109.5 million from $111.8 million at December 31, 2008 as a result of the Company’s year to date net loss.
At September 30, 2009, our tangible common equity was $109.5 million, or 10.27% of tangible assets compared to $111.8 million, or 10.01% of tangible assets at December 31, 2008. At September 30, 2009, the Bank’s total capital to risk-weighted assets declined to 12.02% compared to 13.21% at
CFS Bancorp, Inc. - Page 5 of 8
December 31, 2008 as a result of the net loss for the year combined with a $7.4 million increase in the disallowance of deferred tax assets for regulatory capital purposes. At September 30, 2009, the Bank’s risk-based capital ratio exceeded the regulatory limit of 10% to be considered “well-capitalized” by $17.3 million.
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 be successful. The Bank has 23 offices throughout adjoining markets in Chicago’s Southland and Northwest Indiana. The Company’s website can be found at www.citz.com.
# # #
This press release contains certain forward-looking statements and information relating to the Company that is based on the beliefs of management as well as assumptions made by and information currently available to management. These forward-looking statements include but are not limited to statements regarding current regulatory capital and equity ratios, general economic conditions, state of the banking industry, successful execution of the Company’s strategy and its Strategic Growth and Diversification Plan, levels of provision for the allowance for losses on loans and charge-offs, loan and deposit growth, diversification of the loan portfolio, non-performing asset levels, interest on loans, asset yields and cost of funds, net interest income, net interest margin, non-interest income, non-interest expense, interest rate environment, bank-owned life insurance interest rates, the expected effect of amortization of deferred premium on the FHLB debt; realization of deferred tax assets; and other risk factors identified in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as amended, and other filings with the Securities and Exchange Commission. In addition, the words “anticipate,” “believe,” “estimate,” “expect,” “indicate,” “intend,” “should,” and similar expressions, or the negative thereof, as they relate to the Company or the Company’s management, are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks, uncertainties, assumptions and changes in circumstances. Forward-looking statements are not guarantees of future performance or outcomes, and actual results or events may differ materially from those included in these statements. The Company does not intend to update these forward-looking statements.
# # #
SELECTED CONSOLIDATED FINANCIALS AND OTHER DATA FOLLOW
CFS Bancorp, Inc. – Page 6 of 8
| CFS BANCORP, INC. | |
| Highlights (Unaudited) | |
| (Dollars in thousands, except per share data) | |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
EARNINGS HIGHLIGHTS AND PERFORMANCE RATIOS (1) | | September 30, 2009 | | June 30, 2009 | | September 30, 2008 | | September 30, 2009 | | September 30, 2008 |
| Net income/(loss) | | | $ | (4,671 | ) | | $ | 670 | | | $ | (1,039 | ) | | $ | (2,540 | ) | | $ | (1,555 | ) |
| Basic earnings/(loss) per share | | | | (0.44 | ) | | | 0.06 | | | | (0.10 | ) | | | (0.24 | ) | | | (0.15 | ) |
| Diluted earnings/(loss) per share | | | | (0.44 | ) | | | 0.06 | | | | (0.10 | ) | | | (0.24 | ) | | | (0.15 | ) |
| Cash dividends declared per share | | | | 0.01 | | | | 0.01 | | | | 0.12 | | | | 0.03 | | | | 0.36 | |
| Return on average assets | | | | (1.70 | ) % | | | 0.24 | % | | | (0.37 | ) % | | | (0.31 | ) % | | | (0.18 | ) % |
| Return on average equity | | | | (16.06 | ) | | | 2.41 | | | | (3.36 | ) | | | (3.00 | ) | | | (1.62 | ) |
| Average yield on interest-earning assets | | | | 5.01 | | | | 5.13 | | | | 5.60 | | | | 5.12 | | | | 5.79 | |
| Average cost on interest-bearing liabilities | | | | 1.43 | | | | 1.60 | | | | 2.41 | | | | 1.60 | | | | 2.80 | |
| Interest rate spread | | | | 3.58 | | | | 3.53 | | | | 3.19 | | | | 3.52 | | | | 2.99 | |
| Net interest margin | | | | 3.74 | | | | 3.69 | | | | 3.47 | | | | 3.68 | | | | 3.31 | |
| Average equity to average assets (2) | | | | 10.60 | | | | 10.15 | | | | 11.17 | | | | 10.28 | | | | 11.28 | |
| Average interest-earning assets | | | | | | | | | | | | | | | | | | | | | |
| to average interest-bearing liabilities (2) | | | | 112.26 | | | | 111.48 | | | | 113.55 | | | | 111.71 | | | | 113.13 | |
| Non-interest expense to average assets | | | | 3.73 | | | | 3.63 | | | | 3.13 | | | | 3.60 | | | | 2.86 | |
| Efficiency ratio | | | | 85.43 | | | | 86.76 | | | | 107.67 | | | | 83.24 | | | | 81.90 | |
| Market price per share of common stock | | | | | | | | | | | | | | | | | | | | | |
| for the period ended: | Closing | | $ | 4.68 | | | $ | 4.23 | | | $ | 9.25 | | | $ | 4.68 | | | $ | 9.25 | |
| | High | | | 4.68 | | | | 4.33 | | | | 11.84 | | | | 4.80 | | | | 14.93 | |
| | Low | | | 3.75 | | | | 3.50 | | | | 8.10 | | | | 1.75 | | | | 8.10 | |
| | | | | | | | | | | | | | | | | | | | | | |
STATEMENT OF CONDITION HIGHLIGHTS | | September 30, | | June 30, | | December 31, | | September 30, |
| (at period end) | | | | | | | | 2009 | | | | 2009 | | | | 2008 | | | | 2008 | |
| Total assets | | | | | | | $ | 1,078,420 | | | $ | 1,094,679 | | | $ | 1,121,855 | | | $ | 1,113,418 | |
| Loans receivable, net of unearned fees | | | | | | | | 748,464 | | | | 750,861 | | | | 749,973 | | | | 742,298 | |
| Total deposits | | | | | | | | 847,178 | | | | 831,104 | | | | 824,097 | | | | 832,223 | |
| Total stockholders' equity | | | | | | | | 109,499 | | | | 115,450 | | | | 111,809 | | | | 121,101 | |
| Book value per common share | | | | | | | | 10.16 | | | | 10.73 | | | | 10.47 | | | | 11.34 | |
| Non-performing loans | | | | | | | | 55,980 | | | | 52,897 | | | | 54,701 | | | | 47,799 | |
| Non-performing assets | | | | | | | | 63,401 | | | | 60,268 | | | | 57,943 | | | | 51,146 | |
| Allowance for losses on loans | | | | | | | | 20,799 | | | | 14,934 | | | | 15,558 | | | | 8,664 | |
| Non-performing loans to total loans | | | | | | | | 7.48 | % | | | 7.04 | % | | | 7.29 | % | | | 6.44 | % |
| Non-performing assets to total assets | | | | | | | | 5.88 | | | | 5.51 | | | | 5.16 | | | | 4.59 | |
| Allowance for losses on loans to non-performing loans | | | | 37.15 | | | | 28.23 | | | | 28.44 | | | | 18.13 | |
| Allowance for losses on loans to total loans | | | | | | | 2.78 | | | | 1.99 | | | | 2.07 | | | | 1.17 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Employees (FTE) | | | | | | | | 308 | | | | 318 | | | | 322 | | | | 310 | |
| Banking centers and offices | | | | | | | | 23 | | | | 22 | | | | 22 | | | | 22 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended | | | Nine Months Ended | |
| AVERAGE BALANCE DATA | | | September 30, 2009 | | June 30, 2009 | | September 30, 2008 | | September 30, 2009 | | September 30, 2008 |
| Total assets | | | $ | 1,089,110 | | | $ | 1,099,750 | | | $ | 1,103,127 | | | $ | 1,101,028 | | | $ | 1,139,928 | |
| Loans receivable, net of unearned fees | | | | 747,491 | | | | 750,861 | | | | 728,312 | | | | 750,071 | | | | 752,672 | |
| Total interest-earning assets | | | | 996,045 | | | | 1,013,480 | | | | 1,021,029 | | | | 1,012,927 | | | | 1,054,772 | |
| Total liabilities | | | | 973,699 | | | | 988,177 | | | | 979,934 | | | | 987,873 | | | | 1,011,342 | |
| Total deposits | | | | 840,417 | | | | 845,617 | | | | 839,378 | | | | 836,566 | | | | 853,847 | |
| Interest-bearing deposits | | | | 771,076 | | | | 781,108 | | | | 775,960 | | | | 770,647 | | | | 791,490 | |
| Non-interest bearing deposits | | | | 69,341 | | | | 64,509 | | | | 63,418 | | | | 65,919 | | | | 62,357 | |
| Total interest-bearing liabilities | | | | 887,298 | | | | 909,148 | | | | 899,218 | | | | 906,786 | | | | 932,388 | |
| Stockholders' equity | | | | 115,411 | | | | 111,573 | | | | 123,193 | | | | 113,155 | | | | 128,586 | |
| | | | | | | | | | | | | | | | | | | | | |
| (1) Ratios are annualized where appropriate. | | | | | | | | | | | | | | | | | | | | |
| (2) Ratios calculated on average balances for the periods presented. | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
CFS Bancorp, Inc. – Page 7 of 8
| CFS BANCORP, INC. | |
| Condensed Consolidated Statements of Income (Unaudited) | |
| (Dollars in thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | | | For the Nine Months Ended | |
| | | September 30, 2009 | | | June 30, 2009 | | | September 30, 2008 | | | September 30, 2009 | | | September 30, 2008 | |
| Interest income: | | | | | | | | | | | | | | | |
| Loans | | $ | 9,648 | | | $ | 9,807 | | | $ | 10,739 | | | $ | 29,400 | | | $ | 34,823 | |
| Securities | | | 2,742 | | | | 3,020 | | | | 3,278 | | | | 8,805 | | | | 9,529 | |
| Other | | | 195 | | | | 137 | | | | 347 | | | | 575 | | | | 1,358 | |
| Total interest income | | | 12,585 | | | | 12,964 | | | | 14,364 | | | | 38,780 | | | | 45,710 | |
| | | | | | | | | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 2,431 | | | | 2,749 | | | | 4,058 | | | | 8,276 | | | | 14,300 | |
| Borrowings | | | 758 | | | | 880 | | | | 1,399 | | | | 2,598 | | | | 5,241 | |
| Total interest expense | | | 3,189 | | | | 3,629 | | | | 5,457 | | | | 10,874 | | | | 19,541 | |
| Net interest income | | | 9,396 | | | | 9,335 | | | | 8,907 | | | | 27,906 | | | | 26,169 | |
| Provision for losses on loans | | | 9,430 | | | | 713 | | | | 1,441 | | | | 10,767 | | | | 9,355 | |
| Net interest income (loss) after provision for losses | | | | | | | | | | | | | | | | | | | | |
| on loans | | | (34 | ) | | | 8,622 | | | | 7,466 | | | | 17,139 | | | | 16,814 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-interest income: | | | | | | | | | | | | | | | | | | | | |
| Service charges and other fees | | | 1,479 | | | | 1,376 | | | | 1,640 | | | | 4,154 | | | | 4,544 | |
| Card-based fees | | | 429 | | | | 432 | | | | 408 | | | | 1,249 | | | | 1,203 | |
| Commission income | | | 56 | | | | 70 | | | | 88 | | | | 197 | | | | 281 | |
| Available-for-sale security gains (losses), net | | | 321 | | | | - | | | | (3,470 | ) | | | 1,041 | | | | (3,983 | ) |
| Other asset gains (losses), net | | | (15 | ) | | | (6 | ) | | | 11 | | | | (21 | ) | | | 8 | |
| Income from bank-owned life insurance | | | 218 | | | | 156 | | | | 349 | | | | 552 | | | | 1,129 | |
| Other income | | | 112 | | | | 97 | | | | 124 | | | | 504 | | | | 445 | |
| Total non-interest income | | | 2,600 | | | | 2,125 | | | | (850 | ) | | | 7,676 | | | | 3,627 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-interest expense: | | | | | | | | | | | | | | | | | | | | |
| Compensation and employee benefits | | | 4,505 | | | | 5,078 | | | | 4,510 | | | | 14,758 | | | | 13,025 | |
| Net occupancy expense | | | 763 | | | | 750 | | | | 865 | | | | 2,410 | | | | 2,406 | |
| FDIC insurance premiums | | | 471 | | | | 963 | | | | 40 | | | | 1,738 | | | | 120 | |
| Professional fees | | | 754 | | | | 604 | | | | 379 | | | | 1,708 | | | | 865 | |
| Furniture and equipment expense | | | 526 | | | | 520 | | | | 562 | | | | 1,581 | | | | 1,656 | |
| Data processing | | | 407 | �� | | | 420 | | | | 387 | | | | 1,246 | | | | 1,329 | |
| Marketing | | | 155 | | | | 218 | | | | 289 | | | | 571 | | | | 675 | |
| OREO related expenses | | | 1,343 | | | | 212 | | | | 89 | | | | 1,754 | | | | 279 | |
| Loan collection expenses | | | 290 | | | | 230 | | | | 311 | | | | 818 | | | | 404 | |
| Other general and administrative expenses | | | 1,034 | | | | 948 | | | | 1,243 | | | | 3,035 | | | | 3,645 | |
| Total non-interest expense | | | 10,248 | | | | 9,943 | | | | 8,675 | | | | 29,619 | | | | 24,404 | |
| | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | | (7,682 | ) | | | 804 | | | | (2,059 | ) | | | (4,804 | ) | | | (3,963 | ) |
| Income tax expense (benefit) | | | (3,011 | ) | | | 134 | | | | (1,020 | ) | | | (2,264 | ) | | | (2,408 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | (4,671 | ) | | $ | 670 | | | $ | (1,039 | ) | | $ | (2,540 | ) | | $ | (1,555 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | | | | | | |
| Basic earnings (loss) per share | | $ | (0.44 | ) | | $ | 0.06 | | | $ | (0.10 | ) | | $ | (0.24 | ) | | $ | (0.15 | ) |
| Diluted earnings (loss) per share | | $ | (0.44 | ) | | $ | 0.06 | | | $ | (0.10 | ) | | $ | (0.24 | ) | | $ | (0.15 | ) |
| Cash dividends declared per share | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.12 | | | $ | 0.03 | | | $ | 0.36 | |
| | | | | | | | | | | | | | | | | | | | | |
| Weighted-average shares outstanding | | | 10,603,828 | | | | 10,590,591 | | | | 10,269,945 | | | | 10,563,814 | | | | 10,315,899 | |
| Weighted-average diluted shares outstanding | | | 10,695,719 | | | | 10,697,387 | | | | 10,406,919 | | | | 10,674,247 | | | | 10,539,043 | |
CFS Bancorp, Inc. – Page 8 of 8
CFS BANCORP, INC. | |
| Condensed Consolidated Statements of Condition (Unaudited) | |
| (Dollars in thousands) | |
| | | | | | | | | | | | | |
| | | September 30, 2009 | | | June 30, 2009 | | | December 31, 2008 | | | September 30, 2008 | |
| | | | | | | | | | | | | |
| ASSETS | | | | | | | | | | | | |
| Cash and amounts due from depository institutions | | $ | 22,040 | | | $ | 20,553 | | | $ | 15,714 | | | $ | 16,328 | |
| Interest-bearing deposits | | | 261 | | | | 36 | | | | 3,133 | | | | 6,095 | |
| Federal funds sold | | | - | | | | 234 | | | | 259 | | | | 312 | |
| Cash and cash equivalents | | | 22,301 | | | | 20,823 | | | | 19,106 | | | | 22,735 | |
| | | | | | | | | | | | | | | | | |
| Securities available-for-sale, at fair value | | | 205,877 | | | | 220,324 | | | | 251,270 | | | | 249,636 | |
| Securities held-to-maturity, at cost | | | 6,000 | | | | 6,000 | | | | 6,940 | | | | 3,500 | |
| Investment in Federal Home Loan Bank stock, at cost | | | 23,944 | | | | 23,944 | | | | 23,944 | | | | 23,944 | |
| | | | | | | | | | | | | | | | | |
| Loans receivable, net of unearned fees | | | 748,464 | | | | 750,861 | | | | 749,973 | | | | 742,298 | |
| Allowance for losses on loans | | | (20,799 | ) | | | (14,934 | ) | | | (15,558 | ) | | | (8,664 | ) |
| Net loans | | | 727,665 | | | | 735,927 | | | | 734,415 | | | | 733,634 | |
| | | | | | | | | | | | | | | | | |
| Interest receivable | | | 3,614 | | | | 3,902 | | | | 4,325 | | | | 4,584 | |
| Other real estate owned | | | 7,421 | | | | 7,371 | | | | 3,242 | | | | 3,347 | |
| Office properties and equipment | | | 20,612 | | | | 19,703 | | | | 19,790 | | | | 19,907 | |
| Investment in bank-owned life insurance | | | 36,662 | | | | 36,449 | | | | 36,606 | | | | 36,435 | |
| Deferred tax assets | | | 16,997 | | | | | | | | 15,494 | | | | | |
| Other assets | | | 7,327 | | | | 20,236 | | | | 6,723 | | | | 15,696 | |
| Total assets | | $ | 1,078,420 | | | $ | 1,094,679 | | | $ | 1,121,855 | | | $ | 1,113,418 | |
| | | | | | | | | | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | | | | | | |
| Deposits | | $ | 847,178 | | | $ | 831,104 | | | $ | 824,097 | | | $ | 832,223 | |
| Borrowed money | | | 105,357 | | | | 132,302 | | | | 172,937 | | | | 141,146 | |
| Advance payments by borrowers for taxes and insurance | | | 7,349 | | | | 6,121 | | | | 4,320 | | | | 7,009 | |
| Other liabilities | | | 9,037 | | | | 9,702 | | | | 8,692 | | | | 11,939 | |
| Total liabilities | | | 968,921 | | | | 979,229 | | | | 1,010,046 | | | | 992,317 | |
| | | | | | | | | | | | | | | | | |
| Stockholders' Equity: | | | | | | | | | | | | | | | | |
| Preferred stock, $0.01 par value; 15,000,000 shares authorized | | | – | | | | – | | | | – | | | | – | |
| Common stock, $0.01 par value; 85,000,000 shares authorized; | | | | | | | | | | | | | |
| 23,423,306 shares issued; 10,773,173, 10,764,458, 10,674,511 and | | | | | | | | | | | | | |
| 10,676,483 shares outstanding | | | 234 | | | | 234 | | | | 234 | | | | 234 | |
| Additional paid-in capital | | | 188,930 | | | | 189,004 | | | | 189,211 | | | | 189,966 | |
| Retained earnings | | | 78,675 | | | | 83,455 | | | | 81,525 | | | | 91,696 | |
| Treasury stock, at cost; 12,650,133, 12,658,848, 12,748,795 and | | | | | | | | | | | | | |
| 12,746,823 shares | | | (157,041 | ) | | | (157,508 | ) | | | (157,466 | ) | | | (157,439 | ) |
| Unallocated common stock held by Employee Stock Ownership Plan | | | - | | | | - | | | | (832 | ) | | | (2,892 | ) |
| Accumulated other comprehensive income (loss), net of tax | | | (1,299 | ) | | | 265 | | | | (863 | ) | | | (464 | ) |
| Total stockholders' equity | | | 109,499 | | | | 115,450 | | | | 111,809 | | | | 121,101 | |
| | | | | | | | | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 1,078,420 | | | $ | 1,094,679 | | | $ | 1,121,855 | | | $ | 1,113,418 | |
