Community Investors Bancorp, Inc. Reports Net Earnings For The Three Months Ended September 30, 2012

Nov 14, 2012, 10:31 ET from Community Investors Bancorp, Inc.

BUCYRUS, Ohio, Nov. 14, 2012 /PRNewswire/ -- Community Investors Bancorp, Inc. (Pink Sheets: CIBN), parent company of First Federal Community Bank of Bucyrus, reported net earnings of $74,000, or $.09 per basic share, for the three months ended September 30, 2012, representing a decrease of $7,000, (8.6%), compared to the net earnings of $81,000, or $.09 per basic share, reported for the three months ended September 30, 2011.  The decrease in 2012 earnings reflects a decrease in net interest income of $84,000 (7.4%) as well as an increase in general, administrative and other expenses of $31,000 (2.9%), This was partially offset by a $38,000 (13.1%), increase in net interest income and a decrease of $65,000 (40.6%) in provision for loan loss. The decrease in net interest income reflects the continuing struggle to manage interest rate margins in an historically low interest rate environment coupled with a lack of new loan demand. Other income increases resulted from our gains on sales of mortgages into the secondary market.  The provision for loan losses, though improved in the first quarter, remains high and reflects continuing economic difficulties of some of our economically distressed loan customers. Until the high unemployment rate in the local workforce moderates, we expect difficult business conditions for our customers.  We continue to look for efficiencies in our workforce. However, the regulatory burden continues to increase and general, administrative and other expenses reflect the costs of doing business in a highly-regulated industry in a difficult business environment. Loan administration costs, compliance expense and costs related to bank-owned properties remain elevated. Our staff continues to display the teamwork and cooperation required to manage our way through this difficult environment.   

Community Investors Bancorp, Inc. reported total assets at September 30, 2012, of $136.4 million (increase of $6.0 million or 4.6% from June 30, 2012). That increase reflected a very short-term deposit of more than $6.0 million which artificially increased our asset size at the end of the quarter. Loans decreased by $642,000 while the allowance for loan loss increased by $75,000 for a net change of .8% since June 30, 2012. Total loans classified as substandard increased by $116,000 to $5.9 million. Deposits rose by $6.2 million or 5.9% due to the short-term deposit previously mentioned. The result is that total liabilities were $123.1 million (increase of $6.3 million or 5.4% from June 30, 2012). Total stockholders' equity decreased by $245,000 to $13.4 million as a result of the buyback of the remaining 60,398 shares which remained 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 9.79%.

Our goal remains to build our capital through steady earnings while maintaining liquidity through diligent management of our balance sheet. We continue to prepare for the repurchase of our preferred shares held by the US Treasury, without reducing capital levels below acceptable levels. This repurchase will allow us to improve our annual earnings available to common shareholders by $142,000 or $.18 per common share.

Community Investors Bancorp, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands)

UNAUDITED

September 30,

June 30,

ASSETS

2012

2012

Cash and cash equivalents

$           17,231

$             11,775

Interest-bearing time deposits

2,232

1,240

Available-for-sale securities

23,467

23,305

Loans held-for-sale

985

1,002

Loans receivable

85,773

86,415

Less: Allowance for Loan Loss

(1,750)

(1,675)

Loans receivable-net

84,023

84,740

Premises and equipment

4,146

4,119

Federal Home Loan Bank stock

2,237

2,237

Foreclosed assets held for sale

569

583

Interest receivable

523

496

Prepaid federal income tax

81

-

Prepaid FDIC insurance premiums

283

312

Other assets

641

548

Total assets

$       136,418

$        130,357

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Deposits

$         109,984

$           103,809

Federal Home Loan Bank advances

12,400

12,381

Advances from borrowers for taxes and insurance

118

12

Interest payable

58

63

Accrued federal income tax

-

85

Deferred federal income tax

189

118

Preferred dividend payable

18

18

Other liabilities

295

270

Total liabilities

123,062

116,756

Shareholders' equity

Preferred stock

2,730

2,730

Common stock

15

15

Additional Paid-in capital

5,229

5,229

Retained earnings

12,521

12,447

Accumulated other comprehensive income ( loss)

318

180

Treasury stock

(7,457)

(7,000)

 Total shareholders' equity

13,356

13,601

Total liabilities and shareholders' equity

$       136,418

$        130,357

Community Investors Bancorp, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share data)

UNAUDITED

 Three months ended 

September 30,

2012

2011

Total interest income

$             1,306

$               1,481

Total interest expense

261

352

Net interest income

1,045

1,129

Provision for loan losses

95

160

Net interest income after provision for loan losses

950

969

Other income (losses)

327

289

General, administrative and other expenses

1,114

1,083

Earnings (loss) before income taxes

163

175

Federal income taxes expense (benefit)

54

59

NET INCOME

$               109

$                116

Preferred dividends

35

35

NET INCOME AVAILABLE to COMMON SHAREHOLDERS

$                 74

$                   81

BASIC EARNINGS PER COMMON SHARE

$              0.09

$                0.09

SOURCE Community Investors Bancorp, Inc.