Community Investors Bancorp, Inc. Reports Net Earnings for the Year and Three Months Ended June 30, 2010

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Aug 13, 2010, 12:58 ET

BUCYRUS, Ohio, Aug. 13 /PRNewswire-FirstCall/ -- Community Investors Bancorp, Inc., parent company of First Federal Community Bank of Bucyrus, reported net income available to common shareholders of $657,000 or $.74 per common share, for the year ended June 30, 2010. This represents a dramatic turnaround of almost $1.9 million compared to the net loss of $1.2 million, or $1.34 per common share, reported for the year ended June 30, 2009. The increase in earnings reflects a $1.2 million or 33.4% increase in net interest income, a decrease in provision for loan loss of $425,000, and increases in gains on investments of $94,000 and gains on sold loans of $122,000. Without regard to the FHLB prepayment penalty paid last year, general, administrative and other expenses decreased by $247,000 or 5.8% for the year ended June 30, 2010. Losses on temporary impairments and foreclosed assets, were down by $468,000. This reduction was partially offset by increases in data processing, FDIC insurance and personnel and occupancy costs related to the startup of our new secondary market mortgage loan operations. In June 2009, the Bank prepaid $21 million in FHLB advances at a penalty fee of $833,000. The early payoff of FHLB advances significantly decreased our cost of funds as reflected in our net interest income improvement. As part of our efforts to grow the Bank's income without growing our balance sheet significantly, we have initiated a new operation focused on underwriting and issuing mortgage loans and selling those loans without retaining servicing. This has allowed us access to more loan products and gives our customers more choices and allows the Bank exposure in new markets. We continue to focus on profitability sufficient to fund the repayment of preferred stock, restart shareholder dividends and allow controlled growth.

Community Investors Bancorp, Inc. reported total assets at June 30, 2010, of $124.6 million, total liabilities of $111.7 million, including total deposits of $94.8 million and common stockholders' equity of $10.2 million. Outstanding common shares at June 30, 2010 were approximately 884,000.

Community Investors Bancorp, Inc. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands) UNAUDITED
	June 30,	June 30,
ASSETS	2010	2009
Cash and due from banks	$ 3,012	$ 1,854
Interest bearing deposits	5,077	5,239
Cash and cash equivalents	8,089	7,093
Available-for-sale securities	7,747	8,812
Loans held for sale	1,151	-
Loans, net of allowance for loan losses of $1,540 and $1,600 at
June 30, 2010 and 2009, respectively	98,186	104,143
Premises and equipment	4,178	4,178
FHLB stock	2,237	2,237
Foreclosed assets held for sale	585	260
Interest receivable	689	698
Prepaid federal income taxes	216	366
Deferred federal income taxes	127	204
Prepaid FDIC insurance premiums	644	-
Other assets	488	413
Total assets	$124,337	$128,404

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits	$ 94,778	$ 95,227
Advances from the Federal Home Loan Bank	16,226	20,500
Interest payable	77	204
Other liabilities	330	355
Preferred dividend payable	18	18
Total liabilities	111,429	116,304
Shareholders' equity
Preferred stock	2,665	2,622
Common stock, par $.01, issued 1,525,297 shares	15	15
Additional paid-in capital	5,229	5,229
Retained earnings	11,732	11,118
Accumulated other comprehensive loss	62	(89)
Treasury stock, at cost - Common 641,086 shares	(6,795)	(6,795)
Total shareholders' equity	12,908	12,100
Total liabilities and shareholders' equity	$124,337	$128,404

Community Investors Bancorp, Inc. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except share data) UNAUDITED
	Year ended June 30,		Three months ended June 30,
	2010	2009	2010	2009

Total interest income	$6,877	$7,769	$1,651	$1,772
Total interest expense	2,136	4,207	427	942
Net interest income	4,741	3,562	1,224	830
Provision for losses on loans	489	914	170	671
Net interest income after provision for losses on loans	4,252	2,648	1,054	159
Other income (losses)	947	742	315	280
General, administrative and other expense	4,015	4,262	1,141	1,560
FHLB advance prepayment penalty	-	833	-	833
Earnings (loss) before income taxes	1,184	(1,705)	228	(1,954)
Federal income taxes expense (benefit)	385	(580)	72	(665)
NET EARNINGS (LOSS)	799	(1,125)	156	(1,289)
Preferred dividends	142	73	35	35
NET EARNINGS (LOSS) AVAILABLE
TO COMMON SHARES	$ 657	$ (1,198)	$ 121	$ (1,324)

EARNINGS (LOSS) PER COMMON SHARE	$ .74	$ (1.36)	$ .14	$ (1.50)