Community Bank Shares of Indiana, Inc. Reports 2nd Quarter Net Income Available to Common Shareholders of $1.9 Million, or $0.57 Per Diluted Common Share Business Wire NEW ALBANY, Ind. -- August 15, 2013 Community Bank Shares of Indiana, Inc. reported second quarter net income available to common shareholders of $1.9 million and earnings per diluted common share of $0.57, an increase of 12.05% and 11.76% from the same periods in 2012, respectively. Net income available to common shareholders for the first half of 2013 was $3.6 million, an 8.53% increase from $3.3 million in 2012. James Rickard, President and Chief Executive Officer, commented, “We are excited to be entering the Lexington market through our acquisition of First Federal Bank. Lexington has a strong economic base which should provide the foundation for us to grow our footprint in the region. Long term, we believe this expansion will further enhance our earnings and increase shareholder value but currently we are focused on integrating our new branches and welcoming our new employees and customers to Your Community Bank. The addition of our Lexington branches added more than $60 million in loans to our portfolio which helped to bolster our net interest margin for the second quarter. “Our earnings for the quarter continue the strong earnings trend we have had over the past 3 years. Our margin improved both for the quarter and year-to-date, while the gain we recorded on the Lexington acquisition offset increases in operating expenses associated with our due diligence and integration and higher provision for loan losses. Our continued focus is to control non-interest expenses while improving our margin through smart, profitable growth in our loan portfolio.” The following points summarize significant financial information for the second quarter of 2013: *Net income available to common shareholders was $1.9 million. *Tangible book value per common share of $16.10 as of June 30, 2013. *Net interest margin, on a tax equivalent basis, of 4.23%, an increase from 4.09% for the same period in 2012 while net interest income also increased to $7.8 million from $7.3 million. *Provision for loan losses was $2.5 million, an increase of $1.5 million from the same quarter in 2012. Of the total provision for the quarter, $2.0 million was due to the downgrade of one commercial development relationship. *The Company recorded a bargain purchase gain of $1.9 million from its FDIC assisted acquisition of First Federal Bank in Lexington, Kentucky on April 19, 2013. As a result of the transaction, the Company’s subsidiary, Your Community Bank, acquired assets of $93.6 million including loans of $63.6 million. The Company also assumed deposits of $87.0 million and FHLB advances of $4.4 million. More information about the First Federal acquisition can be found in the Company’s 8-K/A filed on July 3, 2013 with the U.S. Securities and Exchange Commission. *Non-interest expense increased to $6.7 million, or 12.28%, from $6.0 million in 2012. The following points summarize significant financial information for the six months ended June 30, 2013: *Net income available to common shareholders was $3.6 million, or $1.06 per diluted common share compared to $3.3 million and $0.99 for 2012. *Net interest margin, on a tax equivalent basis, of 4.14%, an increase from 4.09% for 2012 while net interest income also increased to $14.9 million from $14.6 million. *Provision for loan losses of $2.7 million, an increase of $267,000 compared to 2012. The provision for the first six months of 2013 was due to the same reason described in the quarterly results discussion. *Non-interest expenses increased 7.91% in 2013 to $12.8 million. The Company’s unaudited consolidated condensed statements of income and credit quality metrics are as follows: Three Months Ended June 30, March 31, 2013 2012 2013 (In thousands, except per share data) Interest income $ 8,375 $ 8,370 $ 7,724 Interest expense 539 1,103 638 Net interest income 7,836 7,267 7,086 Provision for loan losses 2,470 944 247 Non-interest income 3,969 1,979 1,424 Non-interest expense 6,711 5,977 6,086 Income before income taxes 2,624 2,325 2,177 Income tax expense 420 371 270 Net income $ 2,204 $ 1,954 $ 1,907 Preferred stock dividends (288) (244) (221) Net income available to common $ 1,916 $ 1,710 $ 1,686 shareholders Basic earnings per common share $ 0.57 $ 0.51 $ 0.50 Diluted earnings per common share $ 0.57 $ 0.51 $ 0.50 Six Months Ended June 30, 2013 2012 (In thousands, except per share data) Interest income $ 16,099 $ 16,793 Interest expense 1,177 2,209 Net interest income 14,922 14,584 Provision for loan losses 2,717 2,450 Non-interest income 5,393 4,287 Non-interest expense 12,797 11,859 Income before income taxes 4,801 4,562 Income tax expense 690 773 Net income $ 4,111 $ 3,789 Preferred stock dividends (509) (470) Net income available to common $ 3,602 $ 3,319 shareholders Basic earnings per common share $ 1.06 $ 0.99 Diluted earnings per common share $ 1.06 $ 0.99 Credit quality metrics are as follows (in thousands): As of June 30, 2013 March 31, 2013 June 30, 2012 Loans on non-accrual status $ 12,972 $ 15,160 $ 15,547 Loans past due 90 days or - - - more and still accruing Foreclosed and repossessed 9,560 6,242 5,371 assets Total non-performing assets $ 22,532 $ 21,402 $ 20,918 Non-performing assets to 2.69% 2.64% 2.53% total assets Allowance for Loan Losses to 1.76 1.63 2.23 Total Loans The Company’s unaudited condensed consolidated balance sheets are as follows: June 30, December 31, 2013 2012 (In thousands) ASSETS Cash and due from financial institutions $ 12,479 $ 19,039 Interest-bearing deposits in other financial 24,187 32,305 institutions Securities available for sale 199,523 251,205 Loans held for sale 488 1,225 Loans, net of allowance for loan losses of $9,722 541,249 456,827 and $8,762 Federal Home Loan Bank and Federal Reserve stock 5,990 5,998 Accrued interest receivable 3,160 3,014 Premises and equipment, net 13,682 14,094 Cash surrender value of life insurance 21,047 20,709 Other intangible assets 1,174 638 Foreclosed and repossessed assets 9,560 6,345 Other assets 5,832 8,101 Total Assets $ 838,371 $ 819,500 LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits Non interest-bearing $ 180,069 $ 169,411 Interest-bearing 494,255 455,256 Total deposits 674,324 624,667 Other borrowings 38,162 45,500 Federal Home Loan Bank advances 20,000 40,000 Subordinated debentures 17,000 17,000 Accrued interest payable 97 177 Other liabilities 5,046 5,714 Total liabilities 754,629 733,058 STOCKHOLDERS’ EQUITY Total stockholders’ equity 83,742 86,442 Total Liabilities and Stockholders’ Equity $ 838,371 $ 819,500 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 2012 Form 10-K and subsequent 10-Q 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 2nd Quarter Net Income Available to Common Shareholders of $1.9 Million, or $0.57
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