Community Investors Bancorp, Inc. Reports Net Income For The Nine Months and Three Months Ended March 31, 2014

BUCYRUS, Ohio, May 2, 2014 /PRNewswire/ -- Community Investors Bancorp, Inc. (Pink Sheets: CIBN),  parent company of First Federal Community Bank of Bucyrus, reported net earnings available to common shareholders of $303,000, or $.38 per common share for the nine months ended March 31, 2014, representing an increase of $253,000, compared to the net earnings of $50,000, or $.06 per common share reported for the nine months ended March 31, 2013.  The increase in 2014 earnings reflects an increase in net interest income of $116,000 (3.7%), a decrease in provision for loan losses of $269,000 and an increase in other income $48,000 (6.2%). In addition, preferred dividends were reduced by $84,000 to $-0- as a result of the redemption of our preferred shares completed in March 2013. This was partially offset by an increase in general, administrative and other expenses of $197,000 (6.3%). The increase in net interest income reflects stabilization of interest rate margins in a continuing low interest rate environment as well as increased loan demand. The reduction in provision for loan losses reflects a large write off from March 2013 which cleaned up a large troubled credit. Our classified assets remain elevated but decreasing. We continue to work to help our distressed loan customers who make good faith efforts at repayment while we recognize potential losses on a timely basis. Increases in other income are largely related to the expansion of our secondary mortgage loan market. Those new markets also increased our general, administrative and other expenses along with increased loan administration costs, regulatory compliance expense, and costs related to bank-owned properties.  We continue to seek new opportunities and customers in all of our markets with a renewed emphasis on our newer locations. We expect continuing improvement in our classified asset, controlled growth in  all of our markets and improved operational efficiency to achieve a higher level of profitability.

Community Investors Bancorp, Inc. reported total assets at March 31, 2014, of $126.2 million (increase of $6.9 million or 5.8% from June 30, 2013) including gross loans of $93.6 million (increase of $8.3 million or 9.7% from June 30, 2013). Investments decreased by $2.5 million (13.5%), while the allowance for loan loss decreased by $220,000 (13.3%) since June 30, 2013. Total loans classified as substandard decreased by $1,084,000 from June 30, 2013 to $3.9 million, while total nonperforming assets (nonaccrual loans plus bank owned real estate) decreased by $607,000 to $1.9 million. Deposits increased by $3.0 million (3.1%) from June 30, 2013. We borrowed an additional $4.5 million from the Federal Home Loan Bank at favorable rates. Total liabilities were $115.6 million increase of $6.6 million (6.1%) from June 30, 2013). Total stockholders' equity increased by $321,000 to $10.7 million. As a result of the growth of our balance sheet, our capital as a percentage of assets decreased from 8.67% to 8.44%.

As we reduce our classified assets, improve profitability, and grow strategically, we continue to prudently manage interest rate risk, liquidity and maintain our capital levels commensurate with growth in assets and profitability. As you know, we were also very pleased to reinstate paying a dividend during the quarter to reward our patient investors. Future earnings releases should be expected within 45 days of the end of each quarter.

Community Investors Bancorp, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
UNAUDITED
			March 31,		March 31,		June 30,		June 30,
ASSETS			2014		2013		2013		2012
	Cash and cash equivalents		$               6,258		$              10,719		$                5,338		$                11,775
	Interest-bearing time deposits		1,984		2,232		2,232		$                  1,240
	Available-for-sale securities		15,799		19,170		18,255		23,305
	Loans held-for-sale		2,289		2,354		1,803		1,002
	Loans receivable-gross		93,621		84,587		85,335		86,415
		Less: Allowance for Loan Loss	(1,430)		(1,485)		(1,650)		(1,675)
	Loans receivable-net		92,191		83,102		83,685		84,740
	Premises and equipment		4,054		4,062		4,063		4,119
	Federal Home Loan Bank stock		2,237		2,237		2,237		2,237
	Foreclosed assets held for sale		169		591		403		583
	Interest receivable		476		490		456		496
	Prepaid federal income tax		1		91		132		-
	Deferred federal income tax		43		-		73		-
	Prepaid FDIC insurance premiums		-		230		-		312
	Other assets		743		782		631		548
		Total assets	$        126,244		$         126,060		$          119,308		$           130,357
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits		$             99,159		$            102,344		$              96,132		$              103,809
	Federal Home Loan Bank advances		16,000		12,439		12,458		12,381
	Advances from borrowers for taxes and insurance		204		194		77		12
	Interest payable		43		51		48		63
	Accrued federal income tax		-		-		-		85
	Deferred federal income tax		-		90		-		118
	Preferred dividend payable		-		-		-		18
	Other liabilities		178		357		254		270
		Total liabilities	115,584		115,475		108,969		116,756
Shareholders' equity
	Preferred stock		-		-		-		2,730
	Common stock		15		15		15		15
	Additional Paid-in capital		5,299		5,299		5,299		5,229
	Retained earnings		12,790		12,497		12,526		12,447
	Accumulated other comprehensive income ( loss)		13		231		(44)		180
	Treasury stock		(7,457)		(7,457)		(7,457)		(7,000)
		Total shareholders' equity	10,660		10,585		10,339		13,601
Total liabilities and shareholders' equity			$        126,244		$         126,060		$          119,308		$           130,357
		Book value per common share outstanding	$             13.41		$              13.31		$               13.00		$                12.32
Community Investors Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
UNAUDITED
			Nine months ended				Three months ended
			March 31,				March 31,
			2014		2013		2014		2013
Total interest income			$               3,780		$                3,821		$                1,278		$                  1,232
Total interest expense			557		714		161		211
	Net interest income		3,223		3,107		1,117		1,021
Provision for losses on loans			307		576		98		393
	Net interest income after provision
	for losses on loans		2,916		2,531		1,019		628
Other income			822		774		214		275
General, administrative and other expenses			3,304		3,107		1,129		1,069
	Earnings before income taxes		434		198		104		(166)
Federal income taxes expense			131		64		31		(58)
	NET EARNINGS		$                303		$                 134		$                    73		$                  (108)
		Preferred dividends	-		84		-		15
NET INCOME AVAILABLE FOR COMMON SHARES			$                303		$                    50		$                    73		$                  (123)
BASIC EARNINGS  PER COMMON SHARE			$               0.38		$                0.06		$                 0.09		$                 (0.15)

 

   

SOURCE Community Investors Bancorp, Inc.

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