Community Investors Bancorp, Inc. Reports Net Earnings for the Six Months and Three Months Ended December 31, 2011

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Feb 02, 2012, 03:59 ET

BUCYRUS, Ohio, Feb. 2, 2012 /PRNewswire/ -- Community Investors Bancorp, Inc. (Pink Sheets: CIBN), parent company of First Federal Community Bank of Bucyrus, reported net earnings of $207,000, or $.23 per basic share, for the six months ended December 31, 2011, representing a decrease of $80,000, or 27.9%, compared to the net earnings of $287,000, or $.33 per basic share, reported for the six months ended December 31, 2010. The decrease in 2011 earnings reflects a $72,000, or 3.1%, decrease in net interest income, an increase of $70,000 or 32.7% in provision for loan loss and a decrease of 8.0% or $56,000 in other income. This was partially offset by a decrease in general, administrative and other expense of $75,000 or 3.4%. 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. Our secondary mortgage market has continued to generate other income but not at 2010 levels. The provision for loan losses reflects continuing economic difficulties of some of our loan customers due to high unemployment in the local workforce as well as difficult business conditions. We continue to manage our general and administrative costs. Through the efforts, teamwork and cooperation of our employees, we reduced personnel expense by $44,000 as well as other general, administrative expense by $57,000.

Community Investors Bancorp, Inc. reported total assets at December 31, 2011, of $128.8 million (increase of $3.4 million or 2.7% from 2010) including gross loans of $88.3 million (decrease of $6.7 million or 7.1% from 2010). Continuing weak loan demand in our markets has allowed us to restructure our balance sheet. We increased our investments by $10.0 million or 129.9%. We repaid $1.0 million advances to the FHLB, while deposits rose by 4% or $3.9 million. The result is that total liabilities were $115.2 million (increase of $3.0 million or 2.7% from 2010), including total deposits of $102.2 million. Total stockholders' equity grew from $13.1 million at December 31, 2010 to $13.6 million and raised our capital as a percentage of assets from 10.45% to 10.52%.

We continue to build our capital through continued steady earnings and 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 impairing capital levels. This repurchase would allow us to improve our annual earnings by $142,000 or $.16 per common share.

Community Investors Bancorp, Inc. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands) UNAUDITED


	December 31,	June 30,
ASSETS	2011	2011
Cash and cash equivalents	15,964	16,745
Available-for-sale securities	17,731	11,896
Loans held for sale	417	659
Loans, net of allowance for loan losses of $1,725 and $1,550 at December 31, and June 30, 2011, respectively	86,580	90,222
Premises and equipment	4,003	4,042
FHLB stock	2,237	2,237
Foreclosed assets held for sale	547	799
Interest receivable	510	565
Prepaid FDIC insurance premiums	364	433
Other assets	444	512
Total assets	$128,797	$128,110

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits	$ 102,171	$ 101,994
Advances from the Federal Home Loan Bank	12,342	12,304
Interest payable	72	74
Accrued federal income tax	32	163
Deferred federal income tax	153	103
Preferred dividend payable	18	18
Other liabilities	458	207
Total liabilities	115,246	114,863
Shareholders' equity
Preferred stock	2,730	2,709
Common stock, par $.01, issued 1,525,297 shares	15	15
Additional paid-in capital	5,229	5,229
Retained earnings	12,225	12,039
Accumulated other comprehensive loss	147	50
Treasury stock, at cost - Common 642,686 shares	(6,795)	(6,795)
Total shareholders' equity	13,551	13,247
Total liabilities and shareholders' equity	$128,797	$128,110

Community Investors Bancorp, Inc. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except share data) UNAUDITED

	Six months ended December 31,		Three months ended December 31,
	2011	2010	2011	2010
Total interest income	$2,895	$3,119	$1,415	$1,545
Total interest expense	676	828	324	407
Net interest income	2,219	2,291	1,091	1,138
Provision for losses on loans	284	214	123	139
Net interest income after provision for losses on loans	1,935	2,077	968	999
Other income	641	697	351	372
General, administrative and other expense	2,157	2,232	1,074	1,071
Earnings (loss) before income taxes	419	542	245	300
Federal income taxes expense (benefit)	141	184	83	102
NET EARNINGS	278	358	162	198
Preferred dividends	71	71	36	36
NET EARNINGS AVAILABLE TO COMMON SHARES	$ 207	$ 287	$ 126	$ 162

EARNINGS PER COMMON SHARE	$ .23	$ .33	$ .14	$ .18