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| 8-K - Your Community Bankshares, Inc. | v219877_8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Community Bank Shares of Indiana, Inc. reports 1st quarter net income available to common shareholders of $1.5 million and 2nd quarter dividend
New Albany, Ind. (April 27, 2011) – Community Bank Shares of Indiana, Inc. reported first quarter net income available to common shareholders of $1.5 million and earnings per diluted common share of $0.44. The Company also announced today that on April 26th, its board of directors declared a quarterly cash dividend on the Company’s common stock of $0.10 per share payable on May 31, 2011 to shareholders of record at the close of business on May 12, 2011.
James Rickard, President and Chief Executive Officer, commented, “Our operating results for the first quarter reflect the progress our Company has made in several areas. First, we continue to maintain a stable and improved net interest margin versus both our Company’s historical average and our peer group1 for the first quarter of 2011. Second, we remain committed to working through a challenging credit cycle. Credit trends have shown stability and slight improvement in recent quarters. In addition to credit resolutions, our loan officers have originated $42.0 million in loans to local businesses over the past two quarters, which is both an encouraging bright spot and a margin driver.”
Rickard continued, “We continue to invest in new technologies to improve all aspects of our business. Our Company’s drive to improve process efficiencies, analytics, margin, and ultimately profitability are rooted in each investment we have made to move this Company forward. These new investments paired with the talent, energy, and passion of our team members will be the key drivers of our success.”
The following points summarize significant financial information for the first quarter of 2011:
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Net income available to common shareholders was $1.5 million.
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Tangible book value per common share of $13.60.
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Net interest margin, on a tax equivalent basis, of 3.99%.
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Provision for loan losses was $810,000, a decrease of $303,000 and $115,000 from the quarters ended March 31, 2010 and December 31, 2010, respectively.
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Non-performing assets decreased by 1.0%, or $253,000 from the prior quarter end
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Gains of $584,000 were realized on the sale of available for sale securities
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The Company’s unaudited consolidated condensed statements of operations and credit quality metrics are as follows:
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Three Months Ended
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March 31,
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December 31,
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2011
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2010
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2010
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(In thousands, except per share data)
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Interest income
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$ | 8,712 | $ | 9,351 | $ | 8,649 | ||||||
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Interest expense
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1,731 | 2,166 | 1,929 | |||||||||
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Net interest income
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6,981 | 7,185 | 6,720 | |||||||||
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Provision for loan losses
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810 | 1,113 | 925 | |||||||||
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Non-interest income
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1,958 | 1,928 | 1,912 | |||||||||
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Non-interest expense
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5,847 | 5,694 | 5,582 | |||||||||
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Income before income taxes
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2,282 | 2,306 | 2,125 | |||||||||
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Income tax expense
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494 | 501 | 421 | |||||||||
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Net income
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$ | 1,788 | $ | 1,805 | $ | 1,704 | ||||||
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Preferred stock dividends and discount accretion
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(266 | ) | (268 | ) | (266 | ) | ||||||
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Net income available to common shareholders
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$ | 1,522 | $ | 1,537 | $ | 1,438 | ||||||
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Basic earnings per common share
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$ | 0.46 | $ | 0.47 | $ | 0.43 | ||||||
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Diluted earnings per common share
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$ | 0.44 | $ | 0.47 | $ | 0.42 | ||||||
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As of
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March 31,
2011
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December 31,
2010
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March 31,
2010
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Non-Performing Assets to Total Assets
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3.63 | % | 3.62 | % | 3.76 | % | ||||||
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Allowance for Loan Losses to Total Loans
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2.16 | 2.12 | 2.73 | |||||||||
The Company’s unaudited condensed consolidated balance sheets are as follows:
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March 31,
2011
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December 31,
2010
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(In thousands)
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ASSETS
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Cash and due from financial institutions
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$ | 12,304 | $ | 11,658 | ||||
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Interest-bearing deposits in other financial institutions
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9,398 | 23,818 | ||||||
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Securities available for sale
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210,333 | 204,188 | ||||||
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Loans held for sale
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625 | 1,080 | ||||||
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Loans, net of allowance for loan losses of $10,881 and $10,864
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493,526 | 502,223 | ||||||
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Federal Home Loan Bank and Federal Reserve stock
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6,808 | 6,808 | ||||||
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Accrued interest receivable
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3,325 | 3,089 | ||||||
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Premises and equipment, net
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13,567 | 13,659 | ||||||
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Cash surrender value of life insurance
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19,487 | 19,210 | ||||||
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Other intangible assets
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1,044 | 1,106 | ||||||
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Foreclosed and repossessed assets
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3,959 | 3,633 | ||||||
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Other assets
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9,575 | 10,994 | ||||||
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Total Assets
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$ | 783,951 | $ | 801,466 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Deposits
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Non interest-bearing
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$ | 120,358 | $ | 115,014 | ||||
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Interest-bearing
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483,850 | 503,807 | ||||||
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Total deposits
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604,208 | 618,821 | ||||||
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Other borrowings
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52,571 | 49,426 | ||||||
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Federal Home Loan Bank advances
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40,000 | 50,000 | ||||||
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Subordinated debentures
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17,000 | 17,000 | ||||||
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Accrued interest payable
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543 | 615 | ||||||
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Other liabilities
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4,384 | 2,439 | ||||||
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Total liabilities
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718,706 | 738,301 | ||||||
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STOCKHOLDERS’ EQUITY
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Total stockholders’ equity
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65,245 | 63,165 | ||||||
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Total Liabilities and Stockholders’ Equity
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$ | 783,951 | $ | 801,466 | ||||
About Community Bank Shares of Indiana, Inc.
Community Bank Shares of Indiana, Inc. was formed in 1991 as the nation’s first ever mutual holding company. In 1995 the company went public under the NASDAQ symbol CBIN. Today, Community Bank Shares of Indiana ,Inc. is Southeastern Indiana’s largest locally owned and headquartered bank holding company and includes Your Community Bank and The Scott County State Bank. The mission statement of Community Bank Shares of Indiana reflects its purpose: “Achieving financial goals through exceptional people and exceptional service.” Community Bank Shares of Indiana strives to help shareholders, customers, employees, and our communities achieve their respective financial goals by empowering talented individuals to provide a level of unmatched customer service. To learn more about us, please visit www.yourcommunitybank.com and www.scottcountystatebank.com.
Statements in this press release relating to the Company’s plans, objectives, or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations. The Company’s actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed in the Company’s 2010 Form 10-K and subsequent 10-Qs filed with the Securities and Exchange Commission.
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CONTACT:
Paul Chrisco
CFO
Community Bank Shares of Indiana, Inc.
812-981-7375