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| 8-K - FORM 8-K - Your Community Bankshares, Inc. | v333177_8k.htm |
Community Bank Shares of Indiana, Inc. reports 4th quarter net income available to common shareholders of $1.8 million and full year net income available to common shareholders of $6.9 million, or $2.06 per diluted common share
New Albany, Ind. (January 29, 2013) – Community Bank Shares of Indiana, Inc. reported fourth quarter net income available to common shareholders of $1.8 million and earnings per diluted common share of $0.54. Net income available to common shareholders increased during the fourth quarter by 13.64% as compared to the same period last year. Net income available to common shareholders for 2012 was $6.9 million, a 14.76% increase from $6.0 million in 2011.
James Rickard, President and Chief Executive Officer, commented, “Earnings per share increased 14.76% over the prior year. We achieved this increased operating performance by stabilizing our net interest margin, finding ways to supplement certain declining sources of non-interest income, and prudently managing our controllable expenses. This was accomplished while continuing to invest in our people, our information systems, and the future of our Company. We believe in our relationship banking model and will continue to look for opportunities to drive more value for our team members, customers, and shareholders.”
“The economic environment remains challenging for our industry, and sustained low interest rates will continue to put pressure on our net interest margin. The most effective way to sustain our margin is by putting cash inflows from our investment and loan portfolios back to work as new commercial loans. We have increased our sales staff this past year with the strategic goal of growing our commercial loan portfolio in a profitable and responsible manner. Business banking in our market area is competitive, but there is also substantial opportunity.”
“We continue to focus on reducing our non-performing assets,” Rickard continued. “We have not only been impacted by the lost interest income typically associated with these assets, we also have experienced higher than normal expenses involved in managing and resolving problem credit relationships. As credit quality improves, expenses related to the credit administration function will decline. We recognized some progress in this area during the fourth quarter, with non-performing assets as a percentage of total assets declining to 1.84% from 3.27% at the end of September. We will concentrate on reducing that number even further during 2013. Our team is focused on the year ahead and we look forward to the opportunity that comes with a new year.”
The following points summarize significant financial information for the fourth quarter of 2012:
| · | Net income available to common shareholders was $1.8 million. |
| · | Tangible book value per common share of $17.03 as of December 31, 2012. |
| · | Net interest margin, on a tax equivalent basis, of 4.01%, a decrease from 4.14% for the same period in 2011. |
| · | Provision for loan losses was $800,000, a decrease of $51,000 from the quarter ended September 30, 2012. |
The following points summarize significant financial information for 2012:
| · | Net income available to common shareholders was $6.9 million, or $2.06 per diluted common share compared to $6.0 million and $1.79 for 2011. |
| · | Net interest margin, on a tax equivalent basis, of 4.08%, an increase from 4.07% for 2011. |
| · | Provision for loan losses of $4.1 million, a decrease of $289,000 compared to 2011. |
| · | Gains on sales of available for sale securities totaled $2.2 million for the year, a decrease of $317,000 compared to 2011. |
| · | Non-interest expenses increased 3.89% in 2012 to $23.8 million |
| · | Shareholders’ equity increased from $79.6 million as of December 31, 2011 to $86.1 million in 2012, mostly due to net income earned in 2012, net of dividends. |
The Company’s unaudited consolidated condensed statements of income and credit quality metrics are as follows:
| Three Months Ended | ||||||||||||
| December 31, | September 30, | |||||||||||
| 2012 | 2011 | 2012 | ||||||||||
| (In thousands, except per share data) | ||||||||||||
| Interest income | $ | 7,889 | $ | 8,488 | $ | 8,144 | ||||||
| Interest expense | 821 | 1,235 | 1,000 | |||||||||
| Net interest income | 7,068 | 7,253 | 7,144 | |||||||||
| Provision for loan losses | 800 | 1,698 | 851 | |||||||||
| Non-interest income | 2,358 | 2,577 | 1,779 | |||||||||
| Non-interest expense | 6,213 | 5,709 | 5,677 | |||||||||
| Income before income taxes | 2,413 | 2,423 | 2,395 | |||||||||
| Income tax expense | 458 | 533 | 454 | |||||||||
| Net income | $ | 1,955 | $ | 1,890 | $ | 1,941 | ||||||
| Preferred stock dividends and discount accretion | (131 | ) | (285 | ) | (163 | ) | ||||||
| Net income available to common shareholders | $ | 1,824 | $ | 1,605 | $ | 1,778 | ||||||
| Basic earnings per common share | $ | 0.54 | $ | 0.48 | $ | 0.53 | ||||||
| Diluted earnings per common share | $ | 0.54 | $ | 0.48 | $ | 0.53 | ||||||
| Twelve Months Ended | ||||||||
| December 31, | ||||||||
| 2012 | 2011 | |||||||
| (In thousands, except per share data) | ||||||||
| Interest income | $ | 32,826 | $ | 34,241 | ||||
| Interest expense | 4,030 | 5,968 | ||||||
| Net interest income | 28,796 | 28,273 | ||||||
| Provision for loan losses | 4,101 | 4,390 | ||||||
| Non-interest income | 8,424 | 8,481 | ||||||
| Non-interest expense | 23,749 | 22,863 | ||||||
| Income before income taxes | 9,370 | 9,501 | ||||||
| Income tax expense | 1,685 | 2,091 | ||||||
| Net income | $ | 7,685 | $ | 7,410 | ||||
| Preferred stock dividends and discount accretion | (764 | ) | (1,379 | ) | ||||
| Net income available to common shareholders | $ | 6,921 | $ | 6,031 | ||||
| Basic earnings per common share | $ | 2.06 | $ | 1.82 | ||||
| Diluted earnings per common share | $ | 2.06 | $ | 1.79 | ||||
Credit quality metrics are as follows (in thousands):
| As of | ||||||||||||
| December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||||||||
| Loans on non-accrual status | $ | 8,718 | $ | 15,509 | $ | 15,772 | ||||||
| Loans past due 90 days or more and still accruing | - | - | - | |||||||||
| Foreclosed and repossessed assets | 6,345 | 11,055 | 5,076 | |||||||||
| Total non-performing assets | $ | 15,063 | $ | 26,564 | $ | 20,848 | ||||||
| Non-performing assets to total assets | 1.84 | % | 3.27 | % | 2.61 | % | ||||||
| Allowance for Loan Losses to Total Loans | 1.88 | 1.75 | 2.05 | |||||||||
The Company’s unaudited condensed consolidated balance sheets are as follows:
| December 31, 2012 | December 31, 2011 | |||||||
| (In thousands) | ||||||||
| ASSETS | ||||||||
| Cash and due from financial institutions | $ | 18,247 | $ | 15,166 | ||||
| Interest-bearing deposits in other financial institutions | 32,305 | 30,297 | ||||||
| Securities available for sale | 251,721 | 198,746 | ||||||
| Loans held for sale | 1,388 | 1,154 | ||||||
| Loans, net of allowance for loan losses of $8,762 and $10,234 | 456,940 | 489,740 | ||||||
| Federal Home Loan Bank and Federal Reserve stock | 5,998 | 5,952 | ||||||
| Accrued interest receivable | 3,014 | 3,196 | ||||||
| Premises and equipment, net | 14,094 | 13,780 | ||||||
| Cash surrender value of life insurance | 20,709 | 20,012 | ||||||
| Other intangible assets | 638 | 865 | ||||||
| Foreclosed and repossessed assets | 6,345 | 5,076 | ||||||
| Other assets | 8,101 | 8,687 | ||||||
| Total Assets | $ | 819,500 | $ | 792,671 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Deposits | ||||||||
| Non interest-bearing | $ | 169,411 | $ | 127,877 | ||||
| Interest-bearing | 455,256 | 453,481 | ||||||
| Total deposits | 624,667 | 581,358 | ||||||
| Other borrowings | 45,501 | 50,879 | ||||||
| Federal Home Loan Bank advances | 40,000 | 55,000 | ||||||
| Subordinated debentures | 17,000 | 17,000 | ||||||
| Accrued interest payable | 177 | 329 | ||||||
| Other liabilities | 5,713 | 8,510 | ||||||
| Total liabilities | 733,058 | 713,076 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Total stockholders’ equity | 86,442 | 79,595 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 819,500 | $ | 792,671 | ||||
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 2011 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