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AJS Bancorp, Inc. Announces Third Quarter Earnings, Increase to Stock Repurchase Program and an Initial Cash Dividend of $.10 Per Share.

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 $253,000 for the quarter ended September 30, 2005 as compared to $442,000 for the same quarter in 2004. Basic and diluted earnings were $0.12 per share for the quarter ended September 30, 2005 and $0.20 per share for the quarter ended September 30, 2004. The decrease in net income resulted from a decrease in net interest income and a decrease in non-interest income offset by a decrease in non-interest expense.

The Company also announced today that its Board of Directors has authorized the Company to add an additional 50,000 shares to the current stock repurchase program. The Company had previously authorized a repurchase of 217,000 shares of which 183,944 shares have already been repurchased. The repurchases generally would be effected through open market purchases, although the Company does not rule out the possibility of unsolicited negotiated transactions or other types of repurchases.

Also, the Company's Board of Directors announced today that it has declared an initial quarterly dividend of $0.10 cents per share. The dividend is payable on November 25, 2005, to stockholders of record on November 10, 2005. Subject to Office of Thrift Supervision approval, AJS Bancorp, MHC (the "MHC") intends to waive 80% of the quarterly dividend due on its 1,227,554 shares. At September 30, 2005, the Company held cash totaling $12.6 million. At September 30, 2005 the Bank's tier 1 capital as well as its tangible capital ratio was 11.3%, and its risk-based capital ratio was 24.6%.

Total assets as of September 30, 2005 were $261.8 million, a decrease of $9.1 million or 5.6% from $270.9 million at December 31, 2004. The decrease was primarily due to decreases in cash and cash equivalents, loans, and Federal Home Loan Bank (FHLB) stock, partially offset by increases in securities. Cash and cash equivalents decreased $4.4 million or 26.1% to $12.6 million at September 30, 2005 from $17.0 million at December 31, 2004. Loans receivable decreased $9.2 million or 5.6% to $154.1 million at September 30, 2005 from $163.3 million at December 31, 2004. FHLB stock decreased $7.1 million to $5.4 million at September 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. Securities increased $12.1 million to $73.7 million at September 30, 2005 from $61.6 million at December 31, 2004. The increase was due to purchases of fixed-rate government-backed notes and bonds,...