Community Investors Bancorp, Inc. Reports Net Earnings For The Year and Three Months Ended June 30, 2013

BUCYRUS, Ohio, Aug. 15, 2013 /PRNewswire/ -- Community Investors Bancorp, Inc., parent company of First Federal Community Bank of Bucyrus, reported net earnings of $80,000, or $.10 per basic share, for the year ended June 30, 2013, representing a decrease of $349,000, (81.4%), compared to the net earnings of $429,000, or $.49 per basic share, reported for the year ended June 30, 2012.  The decrease in 2013 earnings reflects a decrease in net interest income of $268,000 (6.1%), an increase in provision for loan loss of $261,000 (48.6%) and an increase in general administrative and other expenses of $323,000 (7.4%). This was partially offset by an increase in other income of $236,000 (17.2%), as well as the decrease in preferred dividends of $58,000 as a result of the redemption of our preferred shares completed in March 2013. The decrease in net interest income reflects the difficulty of managing interest rate margins in a historically low interest rate environment as well as a lack of new loan demand. The provision for loan losses reflects a large write-off of a troubled credit which occurred in the quarter ended March 31, 2013. Though our classified assets remain at unacceptably high levels, we continue to work with our distressed loan customers. Loan administration costs, regulatory compliance expense, and costs related to bank-owned properties remain elevated. Professional expenses related to the redemption of our preferred stock as well as the termination of our ESOP plan also contributed to the increase in general, administrative and other expenses. Other income increases resulted from our gains on sales of mortgages into the secondary market. We have already started the process of remaking our Bank and our attitude as we celebrate our 125^th anniversary. We have expanded our geographic reach into northeast Ohio with a new secondary mortgage loan production office. We have raised the expectations for ourselves and our associates to make the changes required to return to a high level of profitability, through controlled growth and additional operational efficiency.   

Community Investors Bancorp, Inc. reported total assets at June 30, 2013, of $119.3 million (decrease of $11.0 million or 8.5% from 2012) including gross loans of $85.3 million (decrease of $1.1 million or 1.2% from 2012). Our investments decreased by $5.1 million (21.7%) as we took the opportunity to harvest some gains. The allowance for loan loss decreased by $25,000 (1.5%) since June 30, 2012. Total loans classified as substandard decreased by $175,000 to $4.9 million. Deposits decreased by $7.7 million (7.4%) from June 30, 2012. Total liabilities were $109.0 million (decrease of $7.8 million or 6.7% from June 30, 2012). Total stockholders' equity decreased by $3.3 million to $10.3 million as a result of the buyback of our preferred stock, which also eliminates preferred dividends ($84,000 in 2013). In addition, we fully redeemed the remaining 60,398 ESOP shares outstanding at June 30, 2012 as part of the termination of our ESOP. Our capital as a percentage of assets decreased from 10.43% to 8.67%.

Our goals remain to reduce our classified assets, to grow strategically, and restore high profitability, while we prudently mitigate interest rate risk and manage liquidity. We expect to rebuild our capital levels commensurate with that growth in assets and profitability. Future earnings releases should be expected within 45 days of the end of each quarter.   

Community Investors Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
UNAUDITED
					June 30,		June 30,
ASSETS					2013		2012
	Cash and cash equivalents				$           5,338		$          11,775
	Interest-bearing time deposits				2,232		1,240
	Available-for-sale securities				18,255		23,305
	Loans held-for-sale				1,803		1,002
	Loans receivable				85,335		86,415
		Less: Allowance for Loan Loss			(1,650)		(1,675)
	Loans receivable-net				83,685		84,740
	Premises and equipment				4,063		4,119
	Federal Home Loan Bank stock				2,237		2,237
	Foreclosed assets held for sale				403		583
	Interest receivable				456		496
	Prepaid FDIC insurance premiums				-		312
	Deferred federal income tax				153		-
	Prepaid FDIC insurance premiums				52		-
	Other assets				631		548
			Total assets		$       119,308		$        130,357
LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities
		Deposits			$         96,132		$        103,809
		Federal Home Loan Bank advances			12,458		12,381
		Advances from borrowers for taxes and insurance			77		12
		Interest payable			48		63
		Accrued federal income tax			-		85
		Deferred federal income tax			-		118
		Preferred dividend payable			-		18
		Other liabilities			254		270
			Total liabilities		108,969		116,756
	Shareholders' equity
		Preferred stock			-		2,730
		Common stock			15		15
		Additional Paid-in capital			5,299		5,229
		Retained earnings			12,526		12,447
		Accumulated other comprehensive income ( loss)			(44)		180
		Treasury stock			(7,457)		(7,000)
			Total shareholders' equity		10,339		13,601
Total liabilities and shareholders' equity					$       119,308		$        130,357

 

Community Investors Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
UNAUDITED
				Year ended				Three months ended
				June 30,				June 30,
				2013		2012		2013		2012
Total interest income				$       5,044		$        5,646		$        1,223		$         1,373
Total interest expense				916		1,250		202		279
	Net interest income			4,128		4,396		1,021		1,094
Provision for losses on loans				798		537		223		174
	Net interest income after provision
	for losses on loans			3,330		3,859		798		920
Other income (losses)				1,605		1,369		496		385
General, administrative and other expenses				4,694		4,371		1,252		1,074
	Earnings (loss) before income taxes			241		857		42		231
Federal income taxes expense (benefit)				77		286		13		77
	NET EARNINGS			$          164		$           571		$             29		$            154
		Preferred dividends		84		142		-		36
NET EARNINGS AVAILABLE
	FOR COMMON SHARES			$            80		$           429		$             29		$            118
EARNINGS (LOSS) PER COMMON SHARE				$         0.10		$          0.49		$          0.04		$           0.13

 

SOURCE Community Investors Bancorp, Inc.

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