UPDATE: CFS Bancorp, Munster, IN (CITZ)

What a difference a year can make! I am happy to report that the CFS Bancorp of today presents a far prettier picture than when I reviewed it last May.

After 14 years of feeding the insatiable Prisby family at the expense of its own health and prospects, the bank has healed remarkably under the care of more ethical managers. So much so that it has attracted a fine suitor and will soon be merging with First Merchants Corporation of Muncie, IN (FRME).

Disclosure: As of this posting, I own shares of CITZ and may subsequently either dispose of them or purchase more.

Prospective Buyers
One year after our May 2012 review of the bank, CITZ surprised us by agreeing to be bought by First Merchants Corporation, Muncie, IN (FRME), a prospective buyer we hadn't anticipated.
Financial Snapshot
(as of 6/30/2013)


MAR 2012
JUN 2013
Total assets:
$1.170B
$1.131B
Tangible book value per share:
$9.66
$10.21
NPAs to assets:
6.3%
6.01%
Price to book:
56%
124.4%
Market cap:
$57.8M
$128.8M
Dividend yield:
0.7%
0.3%
Trailing 12-month return on assets:
-0.9%
0.37%
Trailing 12-month return on equity: 
-0.3%
3.78%  



The Crew
Robert Ross, Chairman
Daryl Pomranke, President, CEO, COO
Jerry Weberling, Executive VP, CFO
The Skinny
No doubt, I owe a few people a big shout out and "Thank You" on behalf of all CITZ shareholders. Congratulations are due to two folks, in particular.

Thank you, Daryl! The bank under Daryl Pomranke's leadership is no longer the anorexic, poorly performing, nepotist institution it was under Prisby family management. Pomranke deserves credit for:
  • Decreasing NPAs from $65.7M to $56.1M in the quarter preceding the merger announcement (a 15% improvement)
    • Increasing profitability from next to nothing to a respectable $1.5M per quarter
    • Transforming company culture from a dysfunctional family-centric mindset to one more appropriate for a public company 

    Thank you, John! Clearly, CFS Bancorp's future got brighter the minute shareholders elected John Palmer of PL Capital to the CFS Bancorp board. Palmer deserves acknowledgment for:
    • Shining a spotlight on Thomas Prisby's abuse of his Office, as Chairman and CEO of a public company   
    • Advocating on behalf of both the bank and its shareholders, as needed for fiscal recovery 
    • Standing firm, despite Prisby's best efforts to thwart responsible leadership and due process 

    No thanks to you, Prisby clan! Who knows what CFS Bancorp could have been on its own, had you respected your fiduciary responsibilities and not treated it as your personal piggy bank?
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