Community Savings Reports Strong First Quarter Earnings

Strategic Insights -

Community Savings, F.A. (NASDAQ: CMSV), a savings and loan association in Palm Beach, Martin, and St. Lucie counties, reported net income of $1.1 million for the first quarter ended December 31, 1994, a significant increase from $929,000 in the same quarter of 1993. The primary drivers of this growth were a $285,000 increase in net interest income and a $125,000 decrease in losses on disposal of securities available for sale. These gains were partially offset by increases in provision for loan losses and non-interest expenses, as well as provision for income taxes. The association completed its reorganization into a mutual holding company form of ownership on October 24, 1994, resulting in a minority stock offering that generated $34.0 million in net proceeds.

Key Takeaways:

  • Net income for the first quarter ended December 31, 1994 was $1.1 million, a 19% increase from $929,000 in the same quarter of 1993.
  • The primary drivers of the increase in net income were a $285,000 increase in net interest income and a $125,000 decrease in losses on disposal of securities available for sale.
  • Core earnings, which exclude nonrecurring events, were $1.0 million for the three months ended December 31, 1994, a 9% decrease from $924,000 for the same period in 1993.
  • Total assets decreased to $524.4 million at December 31, 1994 from $560.3 million at September 30, 1994, primarily due to a cash outflow used to fund the return of excess stock subscriptions.
  • Equity increased $31.9 million to $70.0 million at December 31, 1994, primarily due to the issuance of common stock and net income for the quarter.
  • Net interest income increased to $4.9 million for the quarter ended December 31, 1994 from $4.6 million for the quarter ended December 31, 1993, primarily due to a 17 basis point increase in the net interest margin and a $21.4 million increase in net interest-earning assets.

Statistics:

  • Net income for the first quarter ended December 31, 1994: $1.1 million.
  • Net income for the first quarter ended December 31, 1993: $929,000.
  • Core earnings for the three months ended December 31, 1994: $1.0 million.
  • Total assets at December 31, 1994: $524.4 million.
  • Total assets at September 30, 1994: $560.3 million.
  • Equity at December 31, 1994: $70.0 million.
  • Equity at September 30, 1994: $38.1 million.
  • Net interest income for the quarter ended December 31, 1994: $4.9 million.
  • Net interest income for the quarter ended December 31, 1993: $4.6 million.

Sources:

  • "Community Savings, F.A. Reports First Quarter Earnings" (Business Wire, January 17, 1995)
  • Community Savings, F.A. (NASDAQ: CMSV) - Financial Highlights (Attachment)