Community Bank Shares of Indiana, Inc. Reports 1st Quarter Net Income Available to Common Shareholders of $2.0 Million, or $0.59

  Community Bank Shares of Indiana, Inc. Reports 1st Quarter Net Income
  Available to Common Shareholders of $2.0 Million, or $0.59 Per Diluted
  Common Share and 2nd Quarter Dividend

Business Wire

NEW ALBANY, Ind. -- April 17, 2014

Community Bank Shares of Indiana, Inc. reported first quarter net income
available to common shareholders of $2.0 million and earnings per diluted
common share of $0.59, an increase of 18.7% and 18.0% from the same periods in
2013, respectively. The Company also announced today that on April 15^th, its
board of directors declared a quarterly cash dividend on the Company’s common
stock of $0.12 per share payable on May 16, 2014 to shareholders of record at
the close of business on May 2, 2014.

“Our first quarter net income represents a continuation of the positive
momentum in the Company’s earnings beginning with the fourth quarter of 2009.
During the quarter we were able to improve our net income compared to 2013
while also increasing our net loans by approximately $12 million. Our first
quarter earnings have provided a great start to 2014,” stated James Rickard,
President and Chief Executive Officer.

The following points summarize significant financial information for the first
quarter of 2014:

  *Net income available to common shareholders was $2.0 million.
  *Tangible book value per common share of $17.29 as of March 31, 2014.
  *Fully tax equivalent net interest margin was 4.09%, an increase from 4.06%
    for the same period in 2013; net interest income increased to $7.5 million
    from $7.1 million.
  *Provision for loan losses was $282,000, a slight increase from $247,000
    for the same quarter in 2013.
  *Non-interest income increased to $1.7 million for the first quarter of
    2014 compared to $1.4 million in 2013. The increase was due to net gains
    on sales of securities of $295,000 recognized in 2014 compared to $6,000
    in 2013.
  *Non-interest expense was $6.6 million in the first quarter of 2014
    compared to $6.1 million in 2013 due to increases in several categories of
    expenses associated with the acquisition of First Federal of Lexington,
    Kentucky in the second quarter of 2013.

The Company’s unaudited consolidated condensed statements of income and credit
quality metrics are as follows:

                                        Three Months Ended
                                         March 31,               December 31,
                                         2014        2013        2013
                                         (In thousands, except per share data)
Interest income                          $  8,001     $ 7,724     $  8,422
Interest expense                           476       638        546    
Net interest income                         7,525       7,086        7,876
Provision for loan losses                   282         247          618
Non-interest income                         1,677       1,424        1,711
Non-interest expense                       6,551     6,086      6,240  
Income before income taxes                  2,369       2,177        2,729
Income tax expense                         257       270        433    
Net income                               $  2,112     $ 1,907     $  2,296
Preferred stock dividends                  (110  )    (221  )     (72    )
Net income available to common           $  2,002    $ 1,686    $  2,224  
shareholders
Basic earnings per common share          $  0.59      $ 0.50      $  0.66
Diluted earnings per common share        $  0.59      $ 0.50      $  0.66
                                                                            

Credit quality metrics are as follows (in thousands):

                             As of
                               March 31, 2014  December 31,   March 31, 2013
                                                2013
                                                                
Loans on non-accrual status    $   9,638        $  7,787        $   15,160
Loans past due 90 days or          -               -                -
more and still accruing
Foreclosed and repossessed        6,334         5,988          6,242   
assets
Total non-performing assets    $   15,972      $  13,775      $   21,402  
                                                                
Non-performing assets to           1.89    %       1.62    %        2.64    %
total assets
Allowance for Loan Losses to       1.46            1.43             1.63
Total Loans
                                                                            

The Company’s unaudited condensed consolidated balance sheets are as follows:

                                                     March 31,  December 31,
                                                      2014        2013
                                                      (In thousands)
ASSETS
Cash and due from financial institutions              $ 18,197    $   15,393
Interest-bearing deposits in other financial            4,403         10,896
institutions
Securities available for sale                           194,506       195,327
Loans held for sale                                     -             68
Loans, net of allowance for loan losses of $8,378       565,265       552,926
and $8,009
Federal Home Loan Bank and Federal Reserve stock        5,954         5,955
Accrued interest receivable                             2,990         3,149
Premises and equipment, net                             18,431        18,557
Cash surrender value of life insurance                  21,550        21,386
Other intangible assets                                 920           1,004
Foreclosed and repossessed assets                       6,334         5,988
Other assets                                           7,532        16,086
Total Assets                                          $ 846,082   $   846,735
                                                                  
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non interest-bearing                                  $ 192,749   $   187,207
Interest-bearing                                       462,327      456,418
Total deposits                                          655,076       643,625
Other borrowings                                        41,056        45,722
Federal Home Loan Bank advances                         40,000        50,000
Subordinated debentures                                 17,000        17,000
Accrued interest payable                                94            106
Other liabilities                                      1,964        1,943
Total liabilities                                       755,190       758,396
                                                                  
STOCKHOLDERS’ EQUITY
Total stockholders’ equity                             90,892       88,339
Total Liabilities and Stockholders’ Equity            $ 846,082   $   846,735
                                                                  

About Community Bank Shares of Indiana, Inc.

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 Company’s stock trades on
the NASDAQ Global Select Market under the symbol “CBIN.” 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
2013 Form 10-K filed with the Securities and Exchange Commission.

Contact:

Community Bank Shares of Indiana, Inc.
Paul Chriscom, CFO, 812-981-7375
 
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