Clifton Savings Bancorp Inc. in New Jersey said that its net income in the quarter that ended June 30 fell nearly 18% from the same period last year due to legal expenses related to its decision to terminate its planned second-step conversion.
The $1.1 billion-asset company announced Wednesday that it earned $1.8 million in the quarter, down from the $2.2 million profit it reported last year.
Clifton, a mutual holding company, attributed the drop to a 15.5% increase in its noninterest expense. In June, the company withdrew its bid to pursue a second-step stock offering after the Office of Thrift Supervision gave it a "needs to improve" rating on its latest Community Reinvestment Act examination — a decision increased its legal and accounting costs by more than $500,000.
Clifton has said that it would re-file its application sometime after the OTS is merged into the Office of the Comptroller of the Currency. The merger was completed last month.
Outside of the legal costs, Clifton had a decent quarter. Assets increased 3.7% year over year, thanks largely to growth in its securities portfolio, and its total deposits rose 7.8%, to $841 million.
The company reported no chargeoffs for the quarter and said that total nonperforming loans fell 7% from the prior quarter, to $3 million.