CONTACT: Robert H. Becker
President & CEO
517-374-3588
OR: John W. Abbott
Executive Vice
President & COO
517-483-4871
FOR IMMEDIATE RELEASE -- APRIL 13, 1999
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CFSB BANCORP, INC. REPORTS
FIRST QUARTER EARNINGS
Lansing, Michigan CFSB Bancorp, Inc., (NASDAQ-NMS: CFSB)
holding company for Community First Bank, announced today net
income for the quarter ended March 31, 1999 of $2.5 million or
$0.30 per share, compared to the first quarter of 1998 of $2.8
million, or $0.33 per share. Net income for 1999 was negatively
impacted by costs of $259,000, or $.03 per share, related to the
pending merger.
"Earnings were favorably impacted by continued strong mortgage
and consumer loan production and a larger deposit base,"
commented President and Chief Executive Officer, Robert H.
Becker. "The Corporation's strong financial performance
reflects an increase in net interest income and growth in fee
income, offset by a decrease in gains on sales of the Bank's 30-
year fixed-rate mortgage loan production and the impact of
merger related costs."
On February 24, 1999, the Corporation entered into a definitive
agreement (the Agreement) providing for the merger of CFSB
Bancorp, Inc. into Old Kent Financial Corporation. The
Agreement calls for an exchange of 0.6222 shares of Old Kent
Financial Corporation stock for each share of CFSB Bancorp, Inc.
stock. The merger is subject to, among other things,
stockholder approval and certain regulatory and governmental
approvals and is expected to be completed in the third quarter
of 1999. It is intended that the merger will be structured as a
"pooling-of-interests" for accounting purposes.
Total assets of CFSB Bancorp at March 31, 1999 were $889 million
and stockholders' equity, all tangible, was $71 million compared
to total assets of $846 million and stockholders' equity of $65
million at March 31, 1998. Total loans at quarter-end 1999
increased $56 million to $790 million compared to March 31,
1998, and quarter-end 1999 deposits were $580 million, a $4
million increase over a year earlier.
Community First Bank specializes in residential mortgage lending
and retail banking services. With headquarters in Lansing,
Michigan, the Bank serves mid-Michigan from 16 Banking Centers
and 2 Loan Production Offices.
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CFSB BANCORP, INC., AND SUBSIDIARY
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
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1999 1998
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SUMMARY OF OPERATIONS:
Interest income $ 15,623 $ 15,548
Interest expense 8,907 9,142
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Net interest income 6,716 6,406
Provision for loan losses 105 98
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Net interest income after provision 6,611 6,308
Noninterest income 1,860 1,871
Merger expenses 344 --
Noninterest expense, excluding merger expense 4,322 3,990
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Income before federal income tax expense 3,805 4,189
Federal income tax expense 1,266 1,359
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Net income $ 2,539 $ 2,830
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EARNINGS PER SHARE:*
Basic $ 0.31 $ 0.34
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Diluted $ 0.30 $ 0.33
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OTHER INFORMATION:*
Return on average assets 1.16% 1.35%
Return on average equity 14.60% 17.15%
Net interest margin 3.11% 3.06%
Dividends declared per share $ 0.13 $ 0.12
Book value per share at end of period $ 8.46 $ 7.95
Common shares outstanding at end of period 8,437,346 8,220,049
At
At March 31, December 31,
1999 1998 1998
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FINANCIAL CONDITION:
Total assets $889,071 $846,142 $880,347
Loans receivable, net 785,033 723,274 779,828
Loans held for sale 4,891 10,641 6,583
Investment securities, net 22,063 16,073 22,019
Mortgage-backed securities, net 14,835 19,913 16,007
Deposits 580,094 576,481 586,707
FHLB advances and securities sold under
agreements to repurchase 225,030 189,047 213,607
Stockholders' equity 71,416 65,360 69,277
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* Common shares outstanding and per share amounts have been restated for the 1997
first quarter to reflect a 10% stock dividend declared on May 19, 1998.