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

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Aug 15, 2013, 08:24 ET

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