Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Your Community Bankshares, Inc. | v300930_8k.htm |
Exhibit 99.1
Community Bank Shares of Indiana, Inc. reports 4th quarter net income available to common shareholders of $1.6 million and full year net income available to common shareholders of $6.0 million, or $1.79 per diluted common share
New Albany, Ind. (January 31, 2012) – Community Bank Shares of Indiana, Inc. reported fourth quarter net income available to common shareholders of $1.6 million and earnings per diluted common share of $0.48. Net income available to common shareholders increased during the fourth quarter by 11.6% as compared to the same period last year. Net income available to common shareholders for 2011 was $6.0 million, a 1.8% increase from $5.9 million in 2010.
James Rickard, President and Chief Executive Officer, commented, “In a very challenging environment our Company has made great strides over the past two years. Results for the fourth quarter and the full-year are reflective of a strong net-interest margin and a focus on controlling expenses. Our relationship banking model has transformed the funding side of our balance sheet, which has positioned us for profitable loan growth in 2012. In addition, we have added to our capital base through strong earnings the last two years.”
Rickard continued, “We are also working diligently to resolve our non-performing asset issues. We have been adding additional resources and technology over the last two years to help us reduce non-performing assets in the future and strengthen credit underwriting. We feel that we have the resources in place to make progress in this area, which will have a positive impact on net interest margin and the profitability of our Company.”
The following points summarize significant financial information for the fourth quarter of 2011:
| · | Net income available to common shareholders was $1.6 million. |
| · | Tangible book value per common share of $14.41 as of December 31, 2011. |
| · | Net interest margin, on a tax equivalent basis, of 4.14%, an increase from 3.63% for the same period in 2010. |
| · | Provision for loan losses was $1.7 million, an increase of $727,000 from the quarter ended September 30th, 2011. |
| · | Gains of $894,000 were realized on the sale of available for sale securities, an increase of $342,000 from the quarter ended September 30th, 2011. |
The following points summarize significant financial information for 2011:
| · | Net income available to common shareholders was $6.0 million, or $1.79 per diluted common share compared to $5.9 million and $1.77 for 2010. |
| · | Net interest margin, on a tax equivalent basis, of 4.07%, an increase from 3.90% for 2010. |
| · | Provision for loan losses of $4.4 million, an increase of $557,000 compared to 2010. |
| · | Gains on sales of available for sale securities totaled $2.5 million for the year, an increase from $1.8 million in 2010. |
| · | Shareholders’ equity increased from $63.2 million as of December 31, 2010 to $79.6 million in 2011, mostly due to capital received in connection with the Company’s participation in the U.S. Treasury’s Small Business Lending Fund (see the Company’s September 30, 2011 10-Q for further details) and an increase in retained earnings. |
The Company’s unaudited consolidated condensed statements of income and credit quality metrics are as follows:
| Three Months Ended | ||||||||||||
| December 31, | September 30, | |||||||||||
| 2011 | 2010 | 2011 | ||||||||||
| (In thousands, except per share data) | ||||||||||||
| Interest income | $ | 8,488 | $ | 8,649 | $ | 8,424 | ||||||
| Interest expense | 1,235 | 1,929 | 1,436 | |||||||||
| Net interest income | 7,253 | 6,720 | 6,988 | |||||||||
| Provision for loan losses | 1,698 | 925 | 971 | |||||||||
| Non-interest income | 2,577 | 1,912 | 2,008 | |||||||||
| Non-interest expense | 5,709 | 5,582 | 5,620 | |||||||||
| Income before income taxes | 2,423 | 2,125 | 2,405 | |||||||||
| Income tax expense | 533 | 421 | 528 | |||||||||
| Net income | $ | 1,890 | $ | 1,704 | $ | 1,877 | ||||||
| Preferred stock dividends | (285 | ) | (243 | ) | (262 | ) | ||||||
| Preferred stock discount accretion | - | (23 | ) | (299 | ) | |||||||
| Net income available to common shareholders | $ | 1,605 | $ | 1,438 | $ | 1,316 | ||||||
| Basic earnings per common share | $ | 0.48 | $ | 0.43 | $ | 0.40 | ||||||
| Diluted earnings per common share | $ | 0.48 | $ | 0.42 | $ | 0.38 | ||||||
| Twelve Months Ended | ||||||||
| December 31, | ||||||||
| 2011 | 2010 | |||||||
| (In thousands, except per share data) | ||||||||
| Interest income | $ | 34,241 | $ | 35,894 | ||||
| Interest expense | 5,968 | 8,180 | ||||||
| Net interest income | 28,273 | 27,714 | ||||||
| Provision for loan losses | 4,390 | 3,833 | ||||||
| Non-interest income | 8,481 | 7,414 | ||||||
| Non-interest expense | 22,863 | 22,461 | ||||||
| Income before income taxes | 9,501 | 8,834 | ||||||
| Income tax expense | 2,091 | 1,846 | ||||||
| Net income | $ | 7,410 | $ | 6,988 | ||||
| Preferred stock dividends | (1,034 | ) | (976 | ) | ||||
| Preferred stock discount accretion | (345 | ) | (89 | ) | ||||
| Net income available to common shareholders | $ | 6,031 | $ | 5,923 | ||||
| Basic earnings per common share | $ | 1.82 | $ | 1.80 | ||||
| Diluted earnings per common share | $ | 1.79 | $ | 1.77 | ||||
Credit quality metrics are as follows (in thousands):
| As of | ||||||||||||
| December 31, 2011 | September 30, 2011 | December 31, 2010 | ||||||||||
| Loans on non-accrual status | $ | 15,772 | $ | 16,849 | $ | 15,013 | ||||||
| Loans past due 90 days or more and still accruing | - | - | - | |||||||||
| Foreclosed and repossessed assets | 5,076 | 3,659 | 3,633 | |||||||||
| Total non-performing assets | $ | 20,848 | $ | 20,508 | $ | 18,646 | ||||||
| Troubled debt restructurings (“TDRs”) | 21,842 | 9,603 | 10,361 | |||||||||
| Total non-performing assets including TDRs | $ | 42,690 | $ | 30,111 | $ | 29,007 | ||||||
| Non-performing assets to total assets | 2.63 | % | 2.62 | % | 2.33 | % | ||||||
| Non-performing assets, including TDRs, to total assets | 5.39 | 3.84 | 3.62 | |||||||||
| Allowance for Loan Losses to Total Loans | 2.05 | 1.81 | 2.12 | |||||||||
The Company’s unaudited condensed consolidated balance sheets are as follows:
| December 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (In thousands) | ||||||||
| ASSETS | ||||||||
| Cash and due from financial institutions | $ | 15,166 | $ | 11,658 | ||||
| Interest-bearing deposits in other financial institutions | 30,297 | 23,818 | ||||||
| Securities available for sale | 198,746 | 204,188 | ||||||
| Loans held for sale | 1,154 | 1,080 | ||||||
| Loans, net of allowance for loan losses of $10,234 and $10,864 | 489,740 | 502,223 | ||||||
| Federal Home Loan Bank and Federal Reserve stock | 5,952 | 6,808 | ||||||
| Accrued interest receivable | 3,196 | 3,089 | ||||||
| Premises and equipment, net | 13,780 | 13,659 | ||||||
| Cash surrender value of life insurance | 20,012 | 19,210 | ||||||
| Other intangible assets | 865 | 1,106 | ||||||
| Foreclosed and repossessed assets | 5,076 | 3,633 | ||||||
| Other assets | 8,687 | 10,994 | ||||||
| Total Assets | $ | 792,671 | $ | 801,466 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Deposits | ||||||||
| Non interest-bearing | $ | 127,877 | $ | 115,014 | ||||
| Interest-bearing | 453,481 | 503,807 | ||||||
| Total deposits | 581,358 | 618,821 | ||||||
| Other borrowings | 50,879 | 49,426 | ||||||
| Federal Home Loan Bank advances | 55,000 | 50,000 | ||||||
| Subordinated debentures | 17,000 | 17,000 | ||||||
| Accrued interest payable | 329 | 615 | ||||||
| Other liabilities | 8,510 | 2,439 | ||||||
| Total liabilities | 713,076 | 738,301 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Total stockholders’ equity | 79,595 | 63,165 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 792,671 | $ | 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