Community Bank Shares of Indiana, Inc. Reports 3rd Quarter Net Income Available to Common Shareholders of $2.0 Million, or $0.60 Per Diluted Common Share and 4th Quarter Dividend Business Wire NEW ALBANY, Ind. -- October 21, 2013 Community Bank Shares of Indiana, Inc. reported third quarter net income available to common shareholders of $2.0 million and earnings per diluted common share of $0.60, an increase of 14.68% and 13.21% from the same periods in 2012, respectively. Net income available to common shareholders for the first nine months of 2013 was $5.6 million, a 10.67% increase from $5.1 million in 2012. The Company also announced today that on October 15, its board of directors declared a quarterly cash dividend on the Company’s common stock of $0.11 per share payable on November 22, 2013 to shareholders of record at the close of business on November 4, 2013. “We are proud to once again announce strong quarterly net income, which is the direct result of a lower provision for loan losses for the quarter and an increase in net interest income. During the quarter we also completed the integration of First Federal, which has had a positive impact on our earnings. We are now focusing our efforts on growing our market share in Lexington and all the areas we serve,” stated James Rickard, President and Chief Executive Officer. “We also continue to place emphasis on reducing our non-performing assets, which declined by almost $2 million during the third quarter. We have made substantial progress in this area since 2011, but will remain focused on reducing this number until we are back at pre-recession levels.” The following points summarize significant financial information for the third quarter of 2013: *Net income available to common shareholders was $2.0 million. *Tangible book value per common share of $16.55 as of September 30, 2013. *Net interest margin, on a tax equivalent basis, of 4.47%, an increase from 3.96% for the same period in 2012 while net interest income also increased to $8.2 million from $7.1 million. *Provision for loan losses was $75,000, a decrease of $776,000 from the same quarter in 2012. The decrease was due to reduction in allocation for non-impaired loans. *Non-interest expense increased to $7.0 million from $5.7 million in 2012 due to additional expenses associated with the acquisition and integration of First Federal including new personnel and operational expense of operating three new branches. The following points summarize significant financial information for the nine months ended September 30, 2013: *Net income available to common shareholders was $5.6 million, or $1.67 per diluted common share compared to $5.1 million and $1.52 for 2012. *Net interest margin, on a tax equivalent basis, of 4.26%, an increase from 4.10% for 2012 while net interest income also increased to $23.2 million from $21.7 million. *The Company recorded a bargain purchase gain of $1.9 million in the second quarter of 2013 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. *Provision for loan losses of $2.8 million as compared to $3.3 million in 2012. The provision for the first nine months of 2013 was mostly due to the downgrade of one commercial land development relationship which added $2.0 million to the allowance for loan losses during the second quarter. *Non-interest expenses increased in 2013 to $19.8 million due to integration and acquisition costs associated with First Federal. The Company’s unaudited consolidated condensed statements of income and credit quality metrics are as follows: Three Months Ended September 30, June 30, 2013 2012 2013 (In thousands, except per share data) Interest income $ 8,732 $ 8,144 $ 8,375 Interest expense 504 1,000 539 Net interest income 8,228 7,144 7,836 Provision for loan losses 75 851 2,470 Non-interest income 1,580 1,779 3,969 Non-interest expense 7,034 5,677 6,711 Income before income taxes 2,699 2,395 2,624 Income tax expense 439 454 420 Net income $ 2,260 $ 1,941 $ 2,204 Preferred stock dividends (221 ) (163 ) (288 ) Net income available to common $ 2,039 $ 1,778 $ 1,916 shareholders Basic earnings per common share $ 0.60 $ 0.53 $ 0.57 Diluted earnings per common share $ 0.60 $ 0.53 $ 0.57 Nine Months Ended September 30, 2013 2012 (In thousands, except per share data) Interest income $ 24,831 $ 24,937 Interest expense 1,681 3,209 Net interest income 23,150 21,728 Provision for loan losses 2,792 3,301 Non-interest income 6,973 6,066 Non-interest expense 19,831 17,536 Income before income taxes 7,500 6,957 Income tax expense 1,129 1,227 Net income $ 6,371 $ 5,730 Preferred stock dividends (730 ) (633 ) Net income available to common $ 5,641 $ 5,097 shareholders Basic earnings per common share $ 1.67 $ 1.52 Diluted earnings per common share $ 1.67 $ 1.52 Credit quality metrics are as follows (in thousands): As of September 30, June 30, 2013 September 30, 2013 2012 Loans on non-accrual status $ 11,208 $ 12,972 $ 14,509 Loans past due 90 days or more - - - and still accruing Foreclosed and repossessed 9,557 9,560 11,055 assets Total non-performing assets $ 20,765 $ 22,532 $ 25,564 Non-performing assets to total 2.50 % 2.69 % 3.15 % assets Allowance for Loan Losses to 1.73 1.76 3.07 Total Loans The Company’s unaudited condensed consolidated balance sheets are as follows: September 30, December 31, 2013 2012 (In thousands) ASSETS Cash and due from financial institutions $ 20,941 $ 19,039 Interest-bearing deposits in other financial 10,087 32,305 institutions Securities available for sale 194,839 251,205 Loans held for sale 363 1,225 Loans, net of allowance for loan losses of 538,604 456,827 $9,509 and $8,762 Federal Home Loan Bank and Federal Reserve 5,990 5,998 stock Accrued interest receivable 3,160 3,014 Premises and equipment, net 18,674 14,094 Cash surrender value of life insurance 21,220 20,709 Other intangible assets 1,088 638 Foreclosed and repossessed assets 9,557 6,345 Other assets 6,662 8,101 Total Assets $ 831,185 $ 819,500 LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits Non interest-bearing $ 177,766 $ 169,411 Interest-bearing 466,613 455,256 Total deposits 644,379 624,667 Other borrowings 39,063 45,500 Federal Home Loan Bank advances 40,000 40,000 Subordinated debentures 17,000 17,000 Accrued interest payable 103 177 Other liabilities 5,400 5,714 Total liabilities 745,945 733,058 STOCKHOLDERS’ EQUITY Total stockholders’ equity 85,240 86,442 Total Liabilities and Stockholders’ Equity $ 831,185 $ 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’s 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 $2.0 Million, or $0.60
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