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AJS Bancorp, Inc. Announces Second Quarter Earnings.

Article Excerpt
MIDLOTHIAN, Ill. -- AJS Bancorp, Inc. (OTCBB:AJSB.OB), the holding company for A.J. Smith Federal Savings Bank, Midlothian, Illinois today reported consolidated net income of $329,000 for the quarter ended June 30, 2005 as compared to $348,000 for the same quarter in 2004. Basic and diluted earnings were $0.15 per share for the quarter ended June 30, 2005 and the quarter ended June 30, 2004. The decrease in net income resulted from a decrease in net interest income offset by an increase in non-interest income and a decrease in non-interest expense.

Total assets as of June 30, 2005 were $266.8 million, a decrease of $4.1 million or 1.5% from $270.1 million at December 31, 2004. The decrease was primarily due to decreases in loans, Federal Home Loan Bank (FHLB) stock and federal funds sold, offset by increases in securities. Loans receivable decreased $10.0 million or 6.1% to $153.3 million at June 30, 2005 from $163.3 million at December 31, 2004. FHLB stock decreased $4.2 million to $8.3 million at June 30, 2005 from $12.5 million at December 31, 2004. The Company decreased its investment in FHLB stock due to uncertainty regarding the payment and level of the FHLB dividend. There was no gain or loss on the sale of the FHLB stock. We had no federal funds sold at June 30, 2005 compared with $3.3 million at December 31, 2004. Securities increased $13.5 million to $75.1 million at June 30, 2005 from $61.6 million at December 31, 2004. The increase was due to purchases of fixed-rate government-backed notes and bonds, an additional investment in the adjustable-rate ARM fund, and mortgage-backed securities. These investments provided slightly higher yields than overnight federal fund investments, without locking into longer-term investments. The notes and bonds mature in three years or less, the ARM fund can be redeemed at any time and reprices on average every six months to a year, and the mortgage-backed securities are expected to mature in less than ten years, however prepayments may cause them to pay down at a faster pace. Total deposits decreased $2.3 million or 1.1% to $195.8 million at June 30, 2005 from $198.1 million at December 31, 2004. FHLB advances decreased to $33.8 million at June 30, 2005 from $36.3 million at December 31, 2004.

The Company had non-performing assets of $326,000 as of June 30, 2005 and $983,000 as of December 31, 2004. The allowance for loan losses...

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