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WHITE PLAINS, N.Y., Nov. 15, 2010 (GLOBE NEWSWIRE) -- CMS Bancorp, Inc. (Nasdaq:CMSB) (the "Company"), the parent of Community Mutual Savings Bank (the "Bank"), announced results for the fiscal year ended September 30, 2010, which reflect net income of $166,000, or $.10 per share, in 2010, compared to a net loss of $439,000, or $0.25 per share, in 2009.
President and CEO John Ritacco stated that "we continue to make strides in our journey to enhance the culture, operating performance and future direction of Community Mutual Savings Bank. The Company has continued to grow and prosper over the past several years, despite the very difficult credit and banking environment. We have experienced substantial growth in our net interest income, which rose by $1.3 million, or 19.9% in 2010 compared to 2009. Net interest income was $7.7 million in 2010 versus $6.4 million in 2009."
Commenting on the increase in net interest income, Mr. Ritacco reported that "while the historically low interest rate environment has led to a record level of prepayments in the one-to-four-family mortgage portfolio totaling $19.1 million in 2010, we did experience net loan growth of $9.8 million in our loan portfolio during the year. The growth was principally in the non-residential real estate mortgage, multi-family and secured commercial loan portfolio which has been a key strategic focus of the Bank. These new loans, along with reduced interest costs contributed to the overall improvement in interest rate spreads from 2.63% in 2009 to 3.10% in 2010."
The Company reported that the allowance for loan losses as of September 30, 2010 was $1,114,000, up from $749,000 a year ago and represents 0.62% and 0.44% of loans outstanding, respectively. Commenting on these results, Stephen E. Dowd, Senior Vice President and Chief Financial Officer stated that "despite a weak national economy and its effect in our primary market area, the Bank did not experience any material shift in the loan portfolio, loss experience, or other factors affecting the Bank, other than the planned growth in non-residential real estate and commercial loans. For the fiscal years ending September 30, 2010 and 2009, $366,000 and $230,000, respectively, was added to the allowance for loan losses, due, in part, to the slow economic growth trends, a continuation of high unemployment, continued pressure on local real estate values, additions to the non-residential loan portfolio and a modest increase in our portfolio delinquencies. As of September 30, 2010, the Company had $2.4 million of non-performing loans (1.36% of loans outstanding), most of which are in process of foreclosure, and are considered impaired and have been placed on non-accrual status."