Community Financial Shares Inc (fka CFIS)

[56Chevy]

CFIS reported a loss of $2,445,000 for the 2nd quarter

General. The Company’s net loss for the three months ended March 31, 2013 totaled $2.3 million compared to a net loss of $338,000 for the three months ended March 31, 2012. Due to the effect of preferred stock dividends, net loss available to common shareholders totaled $450,000 for the three months ended March 31, 2012. This represents a basic and diluted loss per share of $0.41 for the three months ended March 31, 2013 compared to basic and diluted loss per share of $0.36 for the three months ended March 31, 2012. The increase in net loss during the three months ended March 31, 2013 is primarily the result of the combined effect of an $850,000 increase in provision for loan losses, a $265,000 increase in noninterest expense and a $129,000 decrease in net interest income.


NOTE 7 – TARP CAPITAL PURCHASE PROGRAM

On May 15, 2009, the Company entered into a Letter Agreement and related Securities Purchase Agreement with the Treasury in accordance with the terms of the Treasury’s TARP Capital Purchase Program. Pursuant to the Letter Agreement and Securities Purchase Agreement, the Company issued 6,970 shares of Series A Preferred Stock, and a warrant for the purchase of 349 shares of Series B Preferred Stock (the “Warrant”) to the Department of Treasury for an aggregate purchase price of $6,970,000 in cash. As part of the transaction, the Department of Treasury exercised the Warrant and received 349 shares of Series B preferred stock.

On November 13, 2012, the Company entered into a securities purchase agreement with the Treasury pursuant to which, it agreed to repurchase the shares of Series A Preferred Stock and Series B Preferred Stock it previously issued pursuant to the TARP Capital Purchase Program for $3.3 million plus an amount equal to 45% of the accrued and unpaid interest and dividends on such shares of Series A Preferred Stock and Series B Preferred Stock. On December 21, 2012, immediately following the consummation of the Investment, the Company redeemed, the $6.9 million of Series A Preferred Stock and Series B Preferred Stock previously issued to the Treasury for an aggregate of $3.7 million, which included the discounted accrued and unpaid dividends on the Series A Preferred Stock and Series B Preferred Stock.

http://www.cbwge.com/1st-Q-results-2013-10-Q.pdf