FOR IMMEDIATE RELEASE
Thomas R. Butkus
Chairman, President, and Chief Executive Officer
AJS Bancorp, Inc. Reports Fourth Quarter and Year End Earnings
MIDLOTHIAN, IL – March 5, 2014 – AJS Bancorp, Inc. (the “Company”) (OTCBB: AJSB), the holding company for AJ Smith Federal Savings Bank (the “Bank”), announced fourth quarter 2013 net income of $223,000, or $0.10 per share, compared to net loss of $825,000, or $(0.36) per share for fourth quarter 2012. The Company reported net income of $903,000 or $0.39 per share for 2013, compared to a net loss of $22,000 or $(0.01) per share for 2012.
Fourth quarter 2013 net interest income increased $11,000 to $1.2 million compared to the fourth quarter 2012. The increase was a result of a $74,000 reduction in interest expense, partially offset by a $63,000 reduction in interest income. Fourth quarter 2013 interest income decreased $63,000 to $1.5 million compared to fourth quarter 2012. The decrease was primarily due to a 26 basis point decline in the average yield on loans to 4.09% for the fourth quarter 2013 compared to 4.35% for the comparable 2012 quarter, partially offset by a $1.1 million increase in the average balance of loans outstanding to $121.9 million for the quarter ended December 31, 2013. Fourth quarter 2013 interest expense decreased $74,000
to $269,000 compared to fourth quarter 2012 of $343,000. The decrease was attributable to a decline in the average balance of certificate of deposits and Federal Home Loan Bank advances.
Net interest income for 2013 decreased $251,000 to $4.9 million compared to 2012 net interest income of $5.2 million. Interest income for 2013 was $6.1 million, down 9.5%, compared to $6.7 million for 2012, reflective of a $9.1 million decrease in average interest earning assets and a 17 basis point decrease in the average rate earned on interest earning assets. Interest expense for 2013 decreased $386,000, or 25.4%, to $1.1 million, as compared to 2012, as a result of a $14.0 million decrease in the average balance of interest bearing liabilities and a 16 basis point decline in the average interest rate paid for interest bearing liabilities. The lower average balance of interest bearing liabilities
reflected a $10.3 million reduction in average certificate of deposits and a $5.3 million decline in average Federal Home Loan Bank advances, offset by increased average balances in the Bank’s lower cost core deposit accounts.
The Bank’s net interest margin for fourth quarter 2013 was 2.42%, a 5 basis point increase from 2.37% for the fourth quarter of 2012, reflecting a 12 basis point decline in the average rate paid in interest bearing liabilities, partially offset by a 10 basis point decline in the average rate earned on interest earning assets. The net interest margin for 2013 was 2.44%, a decline of 2 basis points compared to 2.46% for 2012.
Non-interest income, which is primarily bank services fees and gains on securities sales, increased $109,000, or 57.1%, to $300,000 for the fourth quarter 2013 from the fourth quarter 2012. Non-interest income for 2013 decreased $113,000, or 11.1%, to $906,000 compared with 2012. Non-interest income in 2013 and 2012 included gains on securities sales of $182,000 and $277,000, respectively.
Fourth quarter 2013 non-interest expense decreased $498,000, or 27.4%, to $1.3 million compared with the 2012 fourth quarter. Non-interest expense for 2013 decreased $788,000, or 13.8%, to $4.9 million compared with 2012. The decrease was primarily due to a reduction in the net loss on other real estate owned write-downs, sales, and expenses resulting from the disposal of properties and changing property management companies in 2013 which reduced the carrying costs of the Company’s other real estate owned properties for 2013.
There was no fourth quarter 2013 provision for loan losses compared to a provision of $430,000 for the 2012 fourth quarter, which reflected continued stable asset quality for the Bank. There was no provision for loan losses for 2013 compared to a provision of $501,000 for 2012. Nonperforming loans as a percentage of total net loans at December 31, 2013 were 2.72% compared to 3.16% at December 31, 2012.
The following information was filed by Ajs Bancorp, Inc. (AJSB) on Wednesday, March 5, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.