The Munster-based parent of Citizens Financial Bank swung to a fourth quarter profit of $1.6 million as improved economic conditions helped reduce the funds the institution had to set aside to cover loan losses.
CFS Bancorp Inc. reported net income Tuesday of $1.6 million, or 14 cents per share, compared to the fourth quarter of 2011 when the bank reported a net loss of $12.6 million, or $1.17 per share.
Net interest income fell 3.6 percent to $8.6 million in the last three months of 2012.
Bank CEO Daryl Pomranke said Citizens has worked hard to improve its asset quality and would make progress in reducing non-performing assets in 2013. The bank expects its net interest margin, which fell from the third quarter to 3.38 percent, to be pressured "for the foreseeable future" as interest rates remain low, loan demand is modest and non-performing assets remain at higher-than-desired levels.
The total of bank-owned real estate and non-performing loans fell 22.3 percent from a year ago to $50.3 million as of Dec. 31. Total assets were $1.14 billion.
The bank obtained year-over-year growth in loans for owner-occupied and multifamily commercial real estate, but total loans receivable fell 2.7 percent from a year earlier to $692.7 million as of Dec. 31.
In morning trading Wednesday, CFS Bancorp shares traded at $7.13 a share, down 1 cent on the day.