CFS Bancorp, Inc. Announces First Quarter Results

Apr 23, 2001, 01:00 ET from CFS Bancorp, Inc.

    MUNSTER, Ind., April 23 /PRNewswire Interactive News Release/ -- CFS
 Bancorp, Inc. (Nasdaq:   CITZ) (Company), the parent holding company for
 Citizens Financial Services, FSB (Bank), today reported first quarter net
 income of $3.3 million or $0.22 per share.  This compares to net income for
 the first quarter of 2000 of $1.5 million or $0.09 per share.  Included in the
 first quarter results for 2000 was a special loan loss provision of
 $2.0 million ($1.3 million net of tax) related to the write down of a
 non-performing loan on an office building acquired in the July 1998
 acquisition of SuburbFed Financial Corp.  Absent this write-down, net income
 for the first quarter of 2000 would have been $2.8 million or $0.17 per share.
     Net interest income for the first quarter of 2001 was $11.2 million
 compared to $11.6 million reported for the same period in 2000.  This decrease
 in net interest income primarily reflects the compression of interest rate
 spreads and net interest margins between the first quarter of 2000 and the
 first quarter of 2001.
     The Company's interest income was $29.7 million and $28.5 million for the
 three months ended March 31, 2001 and 2000, respectively.  Average balances of
 net loans increased substantially from the first quarter of 2000 to the first
 quarter of 2001, and average interest rates also increased when comparing
 these two periods.  The average balances of securities decreased while the
 average balances of other earning assets increased from the first quarter of
 2000 to the first quarter of 2001.  Average rates on both of these categories
 decreased between these two periods.  In addition, assets of approximately
 $22.5 million were used to fund the purchase of Bank Owned Life Insurance
 (BOLI) in September, 2000.  The earnings on this investment are not considered
 interest income, but are included in non-interest income.
     Interest expense was $18.6 million and $17.0 million for the three months
 ended March 31, 2001 and 2000, respectively.  Average balances and average
 rates on both deposits and borrowings increased when comparing the first
 quarter of 2001 to the first quarter of 2000.
     The Company's provision for loan losses for the three months ended March
 31, 2001 was $450,000 compared to $2.3 million for the same period in 2000.
 The large decrease was primarily the result of the aforementioned special loan
 loss provision on one non-performing loan taken in the first quarter of 2000.
 The Company continued to increase its monthly allowance for loan losses in the
 first quarter of 2001, due to its increased funding of commercial,
 multi-family and construction loans.
     Non-interest income for the three months ended March 31, 2001 was
 $2.0 million compared to $1.4 million for the same period in 2000.  Income
 from BOLI which is categorized as non-interest income, and an increase of
 approximately $225,000 in checking account fees accounted for most of this
 increase.
     Non-interest expense was $7.8 million for the three months ended March 31,
 2001 compared to $8.0 million for the three months ended March 31, 2000.
 Savings of payroll from staff reductions were partially offset by increases in
 expenses for consulting fees paid for assistance in the Bank's process
 improvement program.
     Income tax expense was $1.7 million for the three months ended March 31,
 2001 compared to $1.2 million for a similar period in 2000.  This increase is
 primarily due to the increased income in the first quarter of 2001 compared to
 the first quarter of 2000.  This was offset in part by the reduced effective
 tax rate (33.3%) in the first quarter of 2001 compared to the effective tax
 rate (44.4%) in the first quarter of 2000 reflecting the implementation of
 certain tax strategies.
     Chairman Thomas F. Prisby stated, "We are optimistic about prospects for
 the remainder of this year.  The process improvements program we embarked on
 late in 2000 is in full swing, and we are beginning to see income improvements
 and cost reductions as a result of implementing some of the recommended
 changes.  We believe that this program coupled with other initiatives we have
 undertaken in the past 30 months indicate positive financial results for the
 remainder of 2001 and beyond."
     CFS Bancorp, Inc. is the parent of Citizens Financial Services, FSB.
 Citizens Financial Services provides community banking services and operates
 25 offices throughout adjoining markets in Chicago's Southland and Northwest
 Indiana.  Citizens Financial Services, FSB also provides insurance and
 investment services through its operating subsidiaries.  The Company's stock
 trades on the Nasdaq National Stock Market(R) under the symbol "CITZ."
     The press release contains certain forward-looking statements and
 information relating to the Company that are 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 the positive net earnings effect of various tax
 strategies and the process improvement program.  In addition, the words
 "anticipate," "believe," "estimate," "expect," "indicate" "intent," "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 and
 assumptions.  One or more of these risks may vary materially from those
 described herein as anticipated, believed, estimated, expected or intended.
 The Company does not intend to update these forward-looking statements.
 
                               CFS BANCORP, INC.
                 Consolidated Statements of Financial Condition
                             (Dollars in thousands)
                                  (Unaudited)
 
                                                      March 31,    December 31,
                                                        2001           2000
     ASSETS
     Cash and amounts due from depository
      institutions                                    $26,616        $25,627
     Interest-bearing deposits                         61,007         18,829
     Federal funds sold                                27,000         14,800
       Cash and cash equivalents                      114,623         59,256
 
     Investment securities available-for-sale          62,650         33,786
     Investment securities held-to-maturity
      (fair value 2001 - $121,109; 2000 - $169,131)   120,923        170,784
     Mortgage-related securities available-for-sale   273,389        279,597
     Mortgage-related securities held-to-maturity
      (fair value 2001 - $72,655; 2000 - $78,516)      72,610         78,857
     Loans receivable, net                            974,480        998,727
     Investment in Federal Home Loan Bank stock,
      at cost                                          26,925         26,925
     Office properties and equipment                   16,095         16,358
     Accrued interest receivable                       10,512         10,615
     Real estate owned                                  1,411          1,058
     Investment in bank owned life insurance           23,363         22,976
     Prepaid expenses and other assets                  6,540         11,437
       Total assets                                $1,703,521     $1,710,376
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Deposits                                        $970,000       $934,012
     Borrowed money                                   505,125        548,076
     Advance payments by borrowers for taxes
      and insurance                                     7,422          5,853
     Other liabilities                                 20,606         23,067
       Total liabilities                            1,503,153      1,511,008
 
     Stockholders' Equity:
       Preferred stock, $.01 par value:
         Authorized shares - 15,000,000
         Issued and outstanding shares - 0
          at March 31, 2001 and December 31, 2000
       Common stock, $.01 par value:
         Authorized shares - 85,000,000
         Issued shares - 23,403,585 and 23,376,385
          at March 31, 2001 and December 31,
          2000, respectively
         Outstanding shares - 16,276,679 and
          16,782,313 at March 31, 2001 and
          December 31, 2000, respectively                 234            234
       Additional paid-in capital                     189,223        188,990
       Retained earnings, substantially restricted    100,768         98,782
       Treasury stock, at cost: 7,126,906 and
        6,594,072 shares at March 31, 2001, and
        December 31, 2000, respectively               (74,196)       (68,829)
       Unearned common stock acquired by ESOP         (10,766)       (10,766)
       Unearned common stock acquired by RRP           (6,019)        (6,019)
       Accumulated other comprehensive income
       (loss), net of tax                               1,124         (3,024)
         Total stockholders' equity                   200,368        199,368
 
           Total liabilities and stockholders'
            equity                                 $1,703,521     $1,710,376
 
 
                               CFS BANCORP, INC.
                       Consolidated Statements of Income
                 (Dollars in thousands, except per share data)
                                  (Unaudited)
 
                                                   Three Months Ended March 31,
                                                        2001           2000
     Interest income:
      Loans                                           $19,251        $17,060
      Mortgage-related securities                       5,970          6,900
      Other investment securities                       3,294          3,525
      Other                                             1,231          1,039
                Total interest income                  29,746         28,524
 
     Interest expense:
      Deposits                                         10,896         10,328
      Borrowings                                        7,667          6,624
                Total interest expense                 18,563         16,952
                Net interest income before
                 provision for losses on loans         11,183         11,572
     Provision for losses on loans                        450          2,250
                Net interest income after
                 provision for losses on loans         10,733          9,322
 
     Non-interest income:
      Loan fees                                           361            421
      Insurance commissions                               232            218
      Investment commissions                              245            369
      Net gain on sale of investment securities           139             --
      Income from Bank-owned life insurance               388             --
      Other income                                        646            376
                Total non-interest income               2,011          1,384
 
     Non-interest expense:
      Compensation and employee benefits                4,781          5,111
      Net occupancy expense                               704            620
      Furniture and equipment expense                     538            651
      Data processing                                     322            296
      Federal insurance premiums                           46             50
      Marketing                                           147            247
      Other general and administrative expenses         1,227          1,021
                Total non-interest expense              7,765          7,996
 
     Income before income taxes                         4,979          2,710
     Income tax expense                                 1,656          1,203
 
                Net income                             $3,323         $1,507
 
     Per share data:
      Basic earnings per share                          $0.22          $0.09
      Diluted earnings per share                         0.22           0.09
      Cash dividends declared per share                  0.09           0.09
      Weighted average shares outstanding          14,971,854     16,532,903
      Weighted average diluted shares outstanding  15,199,649     16,721,865
 
 
                               CFS BANCORP, INC.
                      Selected Consolidated Financial Data
                 (Dollars in thousands, except per share data)
                                  (Unaudited)
 
                                                        At             At
                                                     March 31,     December 31,
                                                       2001           2000
     SELECTED FINANCIAL CONDITION DATA
 
     Common shares outstanding                     16,276,679     16,782,313
     Stockholders' equity per outstanding share        $12.31         $11.88
     Stockholders' equity to total assets               11.76%         11.66%
     Capital ratios (Bank only):
      Tangible capital                                   8.18           8.00
      Core capital                                       8.18           8.00
      Risk-based capital                                15.66          15.23
 
     Non-performing loans                              $9,089        $11,849
     Non-performing assets                             10,500         12,907
     Allowance for losses on loans                      7,422          7,187
     Non-performing loans to total loans                 0.89%          1.13%
     Non-performing assets to total assets               0.62           0.75
     Allowance for losses on loans to non-performing
      loans                                             81.66          60.66
     Allowance for losses on loans to total loans        0.73           0.68
 
     SELECTED OPERATIONS DATA                     Three Months Ended March 31,
                                                      2001           2000
     Average balance data:
      Total assets                                 $1,699,985     $1,643,466
      Loans receivable                                993,921        914,522
      Interest-earning assets                       1,617,526      1,584,642
      Deposits                                        916,131        912,537
      Interest-bearing liabilities                  1,437,098      1,383,832
      Stockholders' equity                            199,678        203,353
 
     Ratios (annualized)
      Return on average assets                           0.78%          0.37%
      Return on average equity                           6.66           2.96
      Average yield on interest-earning assets           7.36           7.20
      Average cost on interest-bearing liabilities       5.17           4.90
      Interest rate spread                               2.19           2.30
      Net interest margin                                2.77           2.92
      Average interest-earning asset to
       average interest-bearing liabilities            112.56         114.51
      Non-interest expense to average assets             1.83           1.95
      Efficiency ratio                                  59.48          61.71
 
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SOURCE CFS Bancorp, Inc.
    MUNSTER, Ind., April 23 /PRNewswire Interactive News Release/ -- CFS
 Bancorp, Inc. (Nasdaq:   CITZ) (Company), the parent holding company for
 Citizens Financial Services, FSB (Bank), today reported first quarter net
 income of $3.3 million or $0.22 per share.  This compares to net income for
 the first quarter of 2000 of $1.5 million or $0.09 per share.  Included in the
 first quarter results for 2000 was a special loan loss provision of
 $2.0 million ($1.3 million net of tax) related to the write down of a
 non-performing loan on an office building acquired in the July 1998
 acquisition of SuburbFed Financial Corp.  Absent this write-down, net income
 for the first quarter of 2000 would have been $2.8 million or $0.17 per share.
     Net interest income for the first quarter of 2001 was $11.2 million
 compared to $11.6 million reported for the same period in 2000.  This decrease
 in net interest income primarily reflects the compression of interest rate
 spreads and net interest margins between the first quarter of 2000 and the
 first quarter of 2001.
     The Company's interest income was $29.7 million and $28.5 million for the
 three months ended March 31, 2001 and 2000, respectively.  Average balances of
 net loans increased substantially from the first quarter of 2000 to the first
 quarter of 2001, and average interest rates also increased when comparing
 these two periods.  The average balances of securities decreased while the
 average balances of other earning assets increased from the first quarter of
 2000 to the first quarter of 2001.  Average rates on both of these categories
 decreased between these two periods.  In addition, assets of approximately
 $22.5 million were used to fund the purchase of Bank Owned Life Insurance
 (BOLI) in September, 2000.  The earnings on this investment are not considered
 interest income, but are included in non-interest income.
     Interest expense was $18.6 million and $17.0 million for the three months
 ended March 31, 2001 and 2000, respectively.  Average balances and average
 rates on both deposits and borrowings increased when comparing the first
 quarter of 2001 to the first quarter of 2000.
     The Company's provision for loan losses for the three months ended March
 31, 2001 was $450,000 compared to $2.3 million for the same period in 2000.
 The large decrease was primarily the result of the aforementioned special loan
 loss provision on one non-performing loan taken in the first quarter of 2000.
 The Company continued to increase its monthly allowance for loan losses in the
 first quarter of 2001, due to its increased funding of commercial,
 multi-family and construction loans.
     Non-interest income for the three months ended March 31, 2001 was
 $2.0 million compared to $1.4 million for the same period in 2000.  Income
 from BOLI which is categorized as non-interest income, and an increase of
 approximately $225,000 in checking account fees accounted for most of this
 increase.
     Non-interest expense was $7.8 million for the three months ended March 31,
 2001 compared to $8.0 million for the three months ended March 31, 2000.
 Savings of payroll from staff reductions were partially offset by increases in
 expenses for consulting fees paid for assistance in the Bank's process
 improvement program.
     Income tax expense was $1.7 million for the three months ended March 31,
 2001 compared to $1.2 million for a similar period in 2000.  This increase is
 primarily due to the increased income in the first quarter of 2001 compared to
 the first quarter of 2000.  This was offset in part by the reduced effective
 tax rate (33.3%) in the first quarter of 2001 compared to the effective tax
 rate (44.4%) in the first quarter of 2000 reflecting the implementation of
 certain tax strategies.
     Chairman Thomas F. Prisby stated, "We are optimistic about prospects for
 the remainder of this year.  The process improvements program we embarked on
 late in 2000 is in full swing, and we are beginning to see income improvements
 and cost reductions as a result of implementing some of the recommended
 changes.  We believe that this program coupled with other initiatives we have
 undertaken in the past 30 months indicate positive financial results for the
 remainder of 2001 and beyond."
     CFS Bancorp, Inc. is the parent of Citizens Financial Services, FSB.
 Citizens Financial Services provides community banking services and operates
 25 offices throughout adjoining markets in Chicago's Southland and Northwest
 Indiana.  Citizens Financial Services, FSB also provides insurance and
 investment services through its operating subsidiaries.  The Company's stock
 trades on the Nasdaq National Stock Market(R) under the symbol "CITZ."
     The press release contains certain forward-looking statements and
 information relating to the Company that are 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 the positive net earnings effect of various tax
 strategies and the process improvement program.  In addition, the words
 "anticipate," "believe," "estimate," "expect," "indicate" "intent," "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 and
 assumptions.  One or more of these risks may vary materially from those
 described herein as anticipated, believed, estimated, expected or intended.
 The Company does not intend to update these forward-looking statements.
 
                               CFS BANCORP, INC.
                 Consolidated Statements of Financial Condition
                             (Dollars in thousands)
                                  (Unaudited)
 
                                                      March 31,    December 31,
                                                        2001           2000
     ASSETS
     Cash and amounts due from depository
      institutions                                    $26,616        $25,627
     Interest-bearing deposits                         61,007         18,829
     Federal funds sold                                27,000         14,800
       Cash and cash equivalents                      114,623         59,256
 
     Investment securities available-for-sale          62,650         33,786
     Investment securities held-to-maturity
      (fair value 2001 - $121,109; 2000 - $169,131)   120,923        170,784
     Mortgage-related securities available-for-sale   273,389        279,597
     Mortgage-related securities held-to-maturity
      (fair value 2001 - $72,655; 2000 - $78,516)      72,610         78,857
     Loans receivable, net                            974,480        998,727
     Investment in Federal Home Loan Bank stock,
      at cost                                          26,925         26,925
     Office properties and equipment                   16,095         16,358
     Accrued interest receivable                       10,512         10,615
     Real estate owned                                  1,411          1,058
     Investment in bank owned life insurance           23,363         22,976
     Prepaid expenses and other assets                  6,540         11,437
       Total assets                                $1,703,521     $1,710,376
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Deposits                                        $970,000       $934,012
     Borrowed money                                   505,125        548,076
     Advance payments by borrowers for taxes
      and insurance                                     7,422          5,853
     Other liabilities                                 20,606         23,067
       Total liabilities                            1,503,153      1,511,008
 
     Stockholders' Equity:
       Preferred stock, $.01 par value:
         Authorized shares - 15,000,000
         Issued and outstanding shares - 0
          at March 31, 2001 and December 31, 2000
       Common stock, $.01 par value:
         Authorized shares - 85,000,000
         Issued shares - 23,403,585 and 23,376,385
          at March 31, 2001 and December 31,
          2000, respectively
         Outstanding shares - 16,276,679 and
          16,782,313 at March 31, 2001 and
          December 31, 2000, respectively                 234            234
       Additional paid-in capital                     189,223        188,990
       Retained earnings, substantially restricted    100,768         98,782
       Treasury stock, at cost: 7,126,906 and
        6,594,072 shares at March 31, 2001, and
        December 31, 2000, respectively               (74,196)       (68,829)
       Unearned common stock acquired by ESOP         (10,766)       (10,766)
       Unearned common stock acquired by RRP           (6,019)        (6,019)
       Accumulated other comprehensive income
       (loss), net of tax                               1,124         (3,024)
         Total stockholders' equity                   200,368        199,368
 
           Total liabilities and stockholders'
            equity                                 $1,703,521     $1,710,376
 
 
                               CFS BANCORP, INC.
                       Consolidated Statements of Income
                 (Dollars in thousands, except per share data)
                                  (Unaudited)
 
                                                   Three Months Ended March 31,
                                                        2001           2000
     Interest income:
      Loans                                           $19,251        $17,060
      Mortgage-related securities                       5,970          6,900
      Other investment securities                       3,294          3,525
      Other                                             1,231          1,039
                Total interest income                  29,746         28,524
 
     Interest expense:
      Deposits                                         10,896         10,328
      Borrowings                                        7,667          6,624
                Total interest expense                 18,563         16,952
                Net interest income before
                 provision for losses on loans         11,183         11,572
     Provision for losses on loans                        450          2,250
                Net interest income after
                 provision for losses on loans         10,733          9,322
 
     Non-interest income:
      Loan fees                                           361            421
      Insurance commissions                               232            218
      Investment commissions                              245            369
      Net gain on sale of investment securities           139             --
      Income from Bank-owned life insurance               388             --
      Other income                                        646            376
                Total non-interest income               2,011          1,384
 
     Non-interest expense:
      Compensation and employee benefits                4,781          5,111
      Net occupancy expense                               704            620
      Furniture and equipment expense                     538            651
      Data processing                                     322            296
      Federal insurance premiums                           46             50
      Marketing                                           147            247
      Other general and administrative expenses         1,227          1,021
                Total non-interest expense              7,765          7,996
 
     Income before income taxes                         4,979          2,710
     Income tax expense                                 1,656          1,203
 
                Net income                             $3,323         $1,507
 
     Per share data:
      Basic earnings per share                          $0.22          $0.09
      Diluted earnings per share                         0.22           0.09
      Cash dividends declared per share                  0.09           0.09
      Weighted average shares outstanding          14,971,854     16,532,903
      Weighted average diluted shares outstanding  15,199,649     16,721,865
 
 
                               CFS BANCORP, INC.
                      Selected Consolidated Financial Data
                 (Dollars in thousands, except per share data)
                                  (Unaudited)
 
                                                        At             At
                                                     March 31,     December 31,
                                                       2001           2000
     SELECTED FINANCIAL CONDITION DATA
 
     Common shares outstanding                     16,276,679     16,782,313
     Stockholders' equity per outstanding share        $12.31         $11.88
     Stockholders' equity to total assets               11.76%         11.66%
     Capital ratios (Bank only):
      Tangible capital                                   8.18           8.00
      Core capital                                       8.18           8.00
      Risk-based capital                                15.66          15.23
 
     Non-performing loans                              $9,089        $11,849
     Non-performing assets                             10,500         12,907
     Allowance for losses on loans                      7,422          7,187
     Non-performing loans to total loans                 0.89%          1.13%
     Non-performing assets to total assets               0.62           0.75
     Allowance for losses on loans to non-performing
      loans                                             81.66          60.66
     Allowance for losses on loans to total loans        0.73           0.68
 
     SELECTED OPERATIONS DATA                     Three Months Ended March 31,
                                                      2001           2000
     Average balance data:
      Total assets                                 $1,699,985     $1,643,466
      Loans receivable                                993,921        914,522
      Interest-earning assets                       1,617,526      1,584,642
      Deposits                                        916,131        912,537
      Interest-bearing liabilities                  1,437,098      1,383,832
      Stockholders' equity                            199,678        203,353
 
     Ratios (annualized)
      Return on average assets                           0.78%          0.37%
      Return on average equity                           6.66           2.96
      Average yield on interest-earning assets           7.36           7.20
      Average cost on interest-bearing liabilities       5.17           4.90
      Interest rate spread                               2.19           2.30
      Net interest margin                                2.77           2.92
      Average interest-earning asset to
       average interest-bearing liabilities            112.56         114.51
      Non-interest expense to average assets             1.83           1.95
      Efficiency ratio                                  59.48          61.71
 
                     MAKE YOUR OPINION COUNT -  Click Here
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 SOURCE  CFS Bancorp, Inc.