SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
October 30,1996
(Date of earliest event reported)
Community Federal Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-27930 64-086536
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
of incorporation)
333 Court Street, Tupelo, Mississippi 38802
(Address of principal executive offices) (Zip Code)
(601) 842-3981
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
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Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits
(a) Not applicable
(b) Not applicable
(c) Exhibits:
99(a) Press Release, dated October 30, 1996
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Exhibit 99(a)
Press Release, dated October 30, 1996
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Community Federal Bancorp, Inc.
333 Court Street
Tupelo, Ms. 38801
601-842-3981
PRESS RELEASE
Contact: Jim Ingram, President
and Chief Executive Officer
For Release: Immediately
COMMUNITY FEDERAL BANCORP, INC. ANNOUNCES YEAR END EARNINGS AND THE AUTHORITY
TO REPURCHASE UP TO 231,437 SHARES OF COMMON STOCK
Tupelo, Mississippi - (NASDAQ: CFTP), Community Federal Bancorp, Inc. ("the
Company") announced today, October 30, 1996, that the Company earned
$2,148,000 for the fiscal year ended September 30, 1996, compared to
$2,035,000 earned by Community Federal Savings Bank ("the Bank") for the
fiscal year ended September 30, 1995. Earnings per share for the period from
the stock offering, March 25, 1996 to September 30, 1996 were $.27. Earnings
per share if presented on a retroactive basis as if the shares had been
outstanding for the entire fiscal year ending September 30, 1996, would have
been $.50. Comparable net income per share figures for the fiscal year 1995
are not available since the Bank was wholly owned during that period by its
mutual holding company. The Company consummated a conversion and
reorganization, including a stock offering on March 25, 1996.
Legislation signed into law on September 30, 1996, to recapitalize the
Savings Association Insurance Fund ("SAIF") requires SAIF-insured savings
institutions to pay a one-time special assessment of 65.7 cents for every
$100 of deposits. Had the company not had the expense of this special
assessment during the fourth fiscal quarter, earnings would have been
approximately $2,692,000 and earnings per share for the period March 25, 1996
to September 30, 1996 would have been $.40. Earnings per share if presented
on a retroactive basis as if the shares had been outstanding for the entire
fiscal year would have been $.63. As a result of this legislation, future
earnings will more than offset the negative impact on fourth quarter earnings
since the deposit insurance premiums that SAIF-insured institutions pay will
decline from an average 23.4 basis points to 6.4 basis points, effective
January 1, 1997. No later than January 1, 2000, deposit insurance premiums
will be further reduced to 2.4 basis points.
The investment of proceeds of the stock conversion in government agency bonds
and mortgage related securities and a strong year of loan originations
favorably impacted net interest income for the year ended September 30, 1996.
Mortgage Loans increased $16.3 million or 17% from $94.3 million at September
30, 1995 to $110.7 million at September 30, 1996. Consumer and Commercial
Loans increased $3.2 million or 78% from $4.1 million at September 30, 1995
to $7.5 million at September 30, 1996. Net Interest Income increased $1.4
million or 29.5% for the fiscal year 1996 compared to fiscal year 1995.
A $20,000 provision for loan losses was made during the fiscal year of 1996
compared to a $30,000 provision for fiscal year 1995. This adjustment
reflects management's estimates which takes into account historical
experience, the amount of non-performing assets and general economic
conditions. Total non-performing assets at September 30, 1996 were $717,000
compared to $977,000 at September 30, 1995. The allowance for loan losses at
September 30, 1996 was $572,000 compared to $552,000 at September 30, 1995.
Non-interest expense increased $1.4 million for the fiscal year 1996 compared
to fiscal year 1995. Chief reasons for the increase were the one time SAIF
special assessment and the increase in compensation expense associated with
the Employee Stock Option Plan and the additional staffing of the consumer
lending department.
The Company's Board of Directors authorized the repurchase of up to 231,437
shares, or approximately 5 percent, of the Company's outstanding common stock.
Repurchases are authorized to be made by the Company from time to time in
open-market transactions during the next 6 months as, in the opinion of
management, market conditions warrant. The repurchased shares will be held
in treasury stock and will be available for general corporate purposes.
Jim Ingram, President and Chief Executive Officer of the Company, stated:
"The Company is fortunate to have financial flexibility that allows it to
demonstrate its commitment to and confidence in its future prospects."
At September 30, 1996, the Company had $204 million total assets and
Stockholders' equity of $67 million. Two quarterly cash dividends were paid
during the fiscal year 1996, totaling $.15 per share. The Bank is the
Company's only subsidiary, and conducts business from its single office
located in Tupelo, Mississippi.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COMMUNITY FEDERAL BANCORP, INC.
Date: October 30, 1996 By: /s/Jim Ingram
Jim Ingram, President
and Chief Executive Officer
