FOR IMMEDIATE RELEASE
Thomas R. Butkus
Chairman, President, and Chief Executive Officer
AJS Bancorp, Inc. Announces First Quarter 2015 Earnings
MIDLOTHIAN, IL – May 1, 2015 – AJS Bancorp, Inc. (the “Company”) (OTCQB: AJSB), the holding company for A.J. Smith Federal Savings Bank (the “Bank”), announced first quarter 2015 net income of $75,000, or $0.04 per share, compared to net income of $228,000, or $0.10 per share for the first quarter 2014.
For the three months ended March 31, 2015:
Net income for the three months ended March 31, 2015 decreased $153,000, or 67.1%, to $75,000, compared to net income of $228,000 for the three months ended March 31, 2014. The decline was mainly attributable to the $107,000 decrease in net interest income. Our net interest income decreased primarily due to the current low interest rate environment as yields on new loan originations and new securities purchases are below that of prior historical levels and a decrease in the average balances of loans and securities.
Net interest income declined $107,000, or 8.7%, to $1.1 million for the three months ended March 31, 2015 from $1.2 million for the same period in 2014. The decline was due to the current low interest rate environment which continued to put downward pressure on our net interest margin The net interest margin declined 16 basis points to 2.26% for the first quarter 2015 compared to 2.42% for the first quarter 2014. The decline was primarily a result of the decrease in the average yield on loans and securities along with a change in the mix of interest-earning assets, which have shifted from loans and securities available-for-sale to a greater amount of low-yielding cash and cash equivalents. The average yield earned on interest-earning assets declined 26 basis points to 2.65%, while the average cost of interest-bearing liabilities decreased 12 basis points to 0.51% for the first quarter of 2015 compared to the first quarter of 2014. The decline in the average cost of interest-bearing liabilities was due to the repayment of maturing Federal Home Loan Bank advances.
For the three months ended March 31, 2015, the Company recorded a provision for loan losses of $15,000, as compared to no provision for loan losses for the same period in 2014. At March 31, 2015 non-performing loans as a percent of total loans decreased slightly to 2.53% from 2.59% at December 31, 2014.
Non-interest income increased $15,000 to $219,000 for the three months ended March 31, 2015, from $204,000 for the three months ended March 31, 2014. The increase was primarily due to a $36,000 increase in gains on securities sales and a $16,000 increase in other non-interest income items, partially offset by a $35,000 decrease in gains on other real estate owned sales.
Non-interest expense increased $24,000 to $1.2 million for the first quarter 2015. The increase was primarily due to a $52,000 increase in compensation and employee benefits expense and a $40,000 increase in other real estate owned loss expense, partially offset by a $22,000 decrease in federal deposit insurance expense and a $16,000 decrease in professional regulatory expense.
Income tax expense was $22,000 for the three months ended March 31, 2015, as compared to no income tax expense for the same period in 2014. No income tax expense was recorded for the three months ended March 31, 2014 due to the reversal of a portion of our valuation allowance which offset income tax expense for the period. As a result of our sustained profitability and expectations for future taxable income, we reversed the remaining deferred tax asset valuation allowance in the second quarter of 2014 and began recording income tax expense.
The following information was filed by Ajs Bancorp, Inc. (AJSB) on Friday, May 1, 2015 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.