Exhibit 99.1
Press Release
City Savings Financial Corporation Announces Third Quarter and Year-to-Date
Earnings
MICHIGAN CITY, Ind.--(BUSINESS WIRE)--May 7, 2004--City Savings Financial
Corporation (OTCBB:CSFC - News; the "Company"), the holding company of City
Savings Bank announced its earnings for the third fiscal quarter of 2004 and
nine months ended March 31, 2004. The Company reported consolidated net income
of $172,000 for the quarter ended March 31, 2004, down $229,000 or 57.1% from
the $401,000 reported for the same period last year. Net income for the nine
months ended March 31, 2004 was $959,000 compared to $930,000 for the same
period last year. Quarterly and year to date earnings have been negatively
impacted by an increase in noninterest expenses and a decrease in noninterest
income. The increase in expense is related to the opening of a full service
branch office in Chesterton, Indiana and a loan origination office in Crown
Point, Indiana as well as staffing increases in commercial lending, loan support
and operations and accounting. The decrease in noninterest income resulted from
a decrease in net gains on loan sales and gains on the sale of
available-for-sale securities. Noninterest income in the prior period also
includes a one time net gain of $110,000 recorded in January of 2003 on the sale
of the Company's property and casualty and health insurance lines of business.
Statements contained in this news release that are forward-looking are subject
to various risks and uncertainties. Such forward-looking statements are made
pursuant to the "safe-harbor" provisions of Private Securities Litigation Reform
Act of 1995 and are made based on management's current expectations or beliefs
as well as assumptions made by, and information currently available to,
management. A variety of factors could cause actual results to differ materially
from those anticipated in the Company's forward-looking statements. Further
discussion is contained in the Company's Form 10-QSB.
March 31, June 30,
2004 2003
Selected Financial Condition Data (In thousands): (Unaudited)
-------------- --------
Total assets $149,230 $ 139,840
Loans receivable (including loans available for sale) 124,147 118,197
Allowance for loan losses 1,439 1,097
Cash and cash equivalents 4,436 4,952
Securities available for sale 12,382 12,187
Deposits 102,677 103,579
Total borrowings 32,986 22,170
Shareholders' equity 11,819 11,008
Three Months Ended Nine Months Ended
(Unaudited)
March 31, March 31,
Selected Operating Data (In thousands): 2004 2003 2004 2003
------------ ------------- -- ------------- -------------
Total interest income $ 1,976 $ 1,861 $ 6,066 $ 5,142
Total interest expense 771 773 2,358 2,130
------------ ------------- -- ------------- -------------
Net interest income
1,205 1,088 3,708 3,012
Provision for loan losses 146 198 402 379
------------ ------------- -- ------------- -------------
Net interest income after provision for loan losses
1,059 890 3,306 2,633
------------ ------------- -- ------------- -------------
Noninterest income
180 449 650 885
Noninterest expense 978 681 2,425 1,996
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------------ ------------- -- ------------- -------------
Income before taxes
261 658 1,531 1,522
Income tax expense 89 257 572 592
------------ ------------- -- ------------- -------------
Net income $ 172 $ 401 $ 959 $ 930
============ ============= == ============= =============
Three Months Ended Nine Months Ended
March 31, March 31,
Supplemental data: 2004 2003 2004 2003
------------- ------------ --- ------------ -------------
Fully diluted earnings per share $ 0.33 $ 0.80 $ 1.88 $ 1.83
Yield on earning assets 5.68% 5.68% 5.75% 6.23%
Yield on costing liabilities 2.33% 2.63% 2.39% 2.91%
Interest rate spread 3.35% 3.05% 3.36% 3.32%
Return on average assets 0.46% 1.19% 0.86% 1.09%
Return on average equity 5.78% 15.04% 11.06% 11.80%
Efficiency ratio 81.03% 60.70% 62.99% 61.78%
Nonperforming loans to total loans, at period end 3.27% 1.91%
Allowance for loan losses to nonperforming loans,
at period end 30.79% 40.71%
City Saving Financial Corporation
Thomas F. Swirski, President and C.E.O, George L. Koehm, Treasurer
219-879-5364