Community Bank Shares of Indiana, Inc. Reports 3rd Quarter Net Income Available to Common Shareholders of $1.8 Million Business Wire NEW ALBANY, Ind. -- October 24, 2012 Community Bank Shares of Indiana, Inc. reported third quarter net income available to common shareholders of $1.8 million and earnings per diluted common share of $0.53. Net income available to common shareholders for the first nine months of 2012 was $5.1 million, an increase of 15.2% as compared to the nine months ended September 30^th, 2011. James Rickard, President and Chief Executive Officer, commented, “Our earnings trend over the past several quarters has been very encouraging as we progress through this slow growth economy. We have managed a stable net interest margin through this extended period of historically low interest rates, but to counter downward pressure on our margin we will need to reinvest cash flows from our investment portfolio into higher yielding loans over the next few years. We are aggressively prospecting for potential sales opportunities but intend to be prudent in our underwriting decisions. In addition, we continue to carefully monitor controllable expenses. Non-interest expenses are up just 2.2% for the first nine months of 2012 as compared to 2011, which is encouraging given the uncertainty in the economy and high legal expenses associated with credit resolution.” Rickard continued, “We are making progress in resolving our non-performing assets. While this process tends to take time, our management team has worked diligently to move these assets toward resolution. This will continue to be a strategic priority in the fourth quarter and into 2013.” The following points summarize significant financial information for the third quarter of 2012: *Net income available to common shareholders was $1.8 million. *Tangible book value per common share of $15.60 as of September 30, 2012. *Net interest margin, on a tax equivalent basis, of 3.96%, a decrease from 4.06% for the same period in 2011. *Provision for loan losses was $851,000, a decrease of $120,000 from the same period in 2011. *Non-performing assets increased to $26.6 million at September 30, 2012 from $20.9 million at June 30, 2012 due to the foreclosure of one credit relationship totaling $6.2 million. A charge-off of $2.5 million was recorded during the quarter for this credit, lowering the allowance for loan losses to total loans to 1.75% from 2.23% at June 30, 2012. The Company had fully provided for the charge-off in previous quarters and did not record additional provision for loan losses for this credit during the quarter. *Gains of $250,000 were realized on the sale of available for sale securities, a decrease of $302,000 from the quarter ended September 30, 2011. The following points summarize significant financial information for the first nine months of 2012: *Net income available to common shareholders was $5.1 million, or $1.52 per diluted common share compared to $4.4 million and $1.29 for 2011. *Net interest margin, on a tax equivalent basis, of 4.10%, an increase from 4.04% from 2011. *Provision for loan losses of $3.3 million, an increase of $609,000 compared to 2011. *Gains on sales of securities available for sale of $1.4 million in 2012 compared to $1.6 million in 2011. The Company’s unaudited consolidated condensed statements of income and credit quality metrics are as follows: Three Months Ended September 30, June 30, 2012 2011 2012 (In thousands, except per share data) Interest income $ 8,144 $ 8,424 $ 8,370 Interest expense 1,000 1,436 1,103 Net interest income 7,144 6,988 7,267 Provision for loan losses 851 971 944 Non-interest income 1,779 2,008 1,979 Non-interest expense 5,677 5,620 5,977 Income before income taxes 2,395 2,405 2,325 Income tax expense 454 528 371 Net income $ 1,941 $ 1,877 $ 1,954 Preferred stock dividends and discount (163 ) (561 ) (244 ) accretion Net income available to common $ 1,778 $ 1,316 $ 1,710 shareholders Basic earnings per common share $ 0.53 $ 0.40 $ 0.51 Diluted earnings per common share $ 0.53 $ 0.38 $ 0.51 Nine Months Ended September 30, 2012 2011 (In thousands, except per share data) Interest income $ 24,937 $ 25,753 Interest expense 3,209 4,733 Net interest income 21,728 21,020 Provision for loan losses 3,301 2,692 Non-interest income 6,066 5,904 Non-interest expense 17,536 17,154 Income before income taxes 6,957 7,078 Income tax expense 1,227 1,558 Net income $ 5,730 $ 5,520 Preferred stock dividends and discount (633 ) (1,094 ) accretion Net income available to common $ 5,097 $ 4,426 shareholders Basic earnings per common share $ 1.52 $ 1.34 Diluted earnings per common share $ 1.52 $ 1.29 Credit quality metrics are as follows (in thousands): As of September 30, June 30, 2012 September 30, 20122 2011 Loans on non-accrual $ 15,509 $ 15,548 $ 16,849 status Loans past due 90 days or more and still - - - accruing Foreclosed and 11,055 5,371 3,659 repossessed assets Total non-performing $ 26,564 $ 20,919 $ 20,508 assets Non-performing assets 3.27 % 2.53 % 2.62 % to total assets Allowance for Loan 1.75 2.23 1.81 Losses to Total Loans The Company’s unaudited condensed consolidated balance sheets are as follows: September 30, December 31, 2012 2011 (In thousands) ASSETS Cash and due from financial institutions $ 12,030 $ 15,166 Interest-bearing deposits in other financial 10,917 30,297 institutions Securities available for sale 250,057 198,746 Loans held for sale 1,926 1,154 Loans, net of allowance for loan losses of 464,295 489,740 $8,255 and $10,234 Federal Home Loan Bank and Federal Reserve 6,011 5,952 stock Accrued interest receivable 3,260 3,196 Premises and equipment, net 13,816 13,780 Cash surrender value of life insurance 20,532 20,012 Other intangible assets 693 865 Foreclosed and repossessed assets 11,055 5,076 Other assets 16,757 8,687 Total Assets $ 811,349 $ 792,671 LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits Non interest-bearing $ 147,728 $ 127,877 Interest-bearing 454,831 453,481 Total deposits 602,559 581,358 Other borrowings 52,112 50,879 Federal Home Loan Bank advances 40,000 55,000 Subordinated debentures 17,000 17,000 Accrued interest payable 267 329 Other liabilities 13,491 8,510 Total liabilities 725,429 713,076 STOCKHOLDERS’ EQUITY Total stockholders’ equity 85,920 79,595 Total Liabilities and Stockholders’ Equity $ 811,349 $ 792,671 About Community Bank Shares of Indiana, Inc. Community Bank Shares of Indiana, Inc. was formed in 1991 as the nation’s first ever mutual holding company. In 1995 the company went public under the NASDAQ symbol CBIN. Today, Community Bank Shares of Indiana, Inc. is Southeastern Indiana’s largest locally owned and headquartered bank holding company and includes Your Community Bank and The Scott County State Bank. The mission statement of Community Bank Shares of Indiana reflects its purpose: “Achieving financial goals through exceptional people and exceptional service.” Community Bank Shares of Indiana strives to help shareholders, customers, employees, and our communities achieve their respective financial goals by empowering talented individuals to provide a level of unmatched customer service. To learn more about us, please visit www.yourcommunitybank.com and www.scottcountystatebank.com. Statements in this press release relating to the Company’s plans, objectives, or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations. The Company’s actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed in the Company’s 2011 Form 10-K and subsequent 10-Qs filed with the Securities and Exchange Commission. Contact: Community Bank Shares of Indiana, Inc. Paul Chrisco, CFO, 812-981-7375
Community Bank Shares of Indiana, Inc. Reports 3rd Quarter Net Income Available to Common Shareholders of $1.8 Million
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