NEW ALBANY, Ind.--(BUSINESS WIRE)--
Community Bank Shares of Indiana, Inc. reported third quarter net income available to common shareholders of $2.0 million and earnings per diluted common share of $0.60, an increase of 14.68% and 13.21% from the same periods in 2012, respectively. Net income available to common shareholders for the first nine months of 2013 was $5.6 million, a 10.67% increase from $5.1 million in 2012. The Company also announced today that on October 15, its board of directors declared a quarterly cash dividend on the Company’s common stock of $0.11 per share payable on November 22, 2013 to shareholders of record at the close of business on November 4, 2013.
“We are proud to once again announce strong quarterly net income, which is the direct result of a lower provision for loan losses for the quarter and an increase in net interest income. During the quarter we also completed the integration of First Federal, which has had a positive impact on our earnings. We are now focusing our efforts on growing our market share in Lexington and all the areas we serve,” stated James Rickard, President and Chief Executive Officer.
“We also continue to place emphasis on reducing our non-performing assets, which declined by almost $2 million during the third quarter. We have made substantial progress in this area since 2011, but will remain focused on reducing this number until we are back at pre-recession levels.”
The following points summarize significant financial information for the third quarter of 2013:
- Net income available to common shareholders was $2.0 million.
- Tangible book value per common share of $16.55 as of September 30, 2013.
- Net interest margin, on a tax equivalent basis, of 4.47%, an increase from 3.96% for the same period in 2012 while net interest income also increased to $8.2 million from $7.1 million.
- Provision for loan losses was $75,000, a decrease of $776,000 from the same quarter in 2012. The decrease was due to reduction in allocation for non-impaired loans.
- Non-interest expense increased to $7.0 million from $5.7 million in 2012 due to additional expenses associated with the acquisition and integration of First Federal including new personnel and operational expense of operating three new branches.
The following points summarize significant financial information for the nine months ended September 30, 2013:
- Net income available to common shareholders was $5.6 million, or $1.67 per diluted common share compared to $5.1 million and $1.52 for 2012.
- Net interest margin, on a tax equivalent basis, of 4.26%, an increase from 4.10% for 2012 while net interest income also increased to $23.2 million from $21.7 million.
- The Company recorded a bargain purchase gain of $1.9 million in the second quarter of 2013 from its FDIC assisted acquisition of First Federal Bank in Lexington, Kentucky on April 19, 2013. As a result of the transaction, the Company’s subsidiary, Your Community Bank, acquired assets of $93.6 million including loans of $63.6 million. The Company also assumed deposits of $87.0 million and FHLB advances of $4.4 million. More information about the First Federal acquisition can be found in the Company’s 8-K/A filed on July 3, 2013 with the U.S. Securities and Exchange Commission.
- Provision for loan losses of $2.8 million as compared to $3.3 million in 2012. The provision for the first nine months of 2013 was mostly due to the downgrade of one commercial land development relationship which added $2.0 million to the allowance for loan losses during the second quarter.
- Non-interest expenses increased in 2013 to $19.8 million due to integration and acquisition costs associated with First Federal.
The Company’s unaudited consolidated condensed statements of income and credit quality metrics are as follows:
|Three Months Ended|
|September 30,||June 30,|
|(In thousands, except per share data)|
|Net interest income||8,228||7,144||7,836|
|Provision for loan losses||75||851||2,470|
|Income before income taxes||2,699||2,395||2,624|
|Income tax expense||439||454||420|
|Preferred stock dividends||(221||)||(163||)||(288||)|
|Net income available to common shareholders||$||2,039||$||1,778||$||1,916|
|Basic earnings per common share||$||0.60||$||0.53||$||0.57|
|Diluted earnings per common share||$||0.60||$||0.53||$||0.57|
|Nine Months Ended|
|(In thousands, except per share data)|
|Net interest income||23,150||21,728|
|Provision for loan losses||2,792||3,301|
|Income before income taxes||7,500||6,957|
|Income tax expense||1,129||1,227|
|Preferred stock dividends||(730||)||(633||)|
|Net income available to common shareholders||$||5,641||$||5,097|
|Basic earnings per common share||$||1.67||$||1.52|
|Diluted earnings per common share||$||1.67||$||1.52|
Credit quality metrics are as follows (in thousands):
|September 30, 2013||June 30, 2013||September 30, 2012|
|Loans on non-accrual status||$||11,208||$||12,972||$||14,509|
|Loans past due 90 days or more and still accruing||-||-||-|
|Foreclosed and repossessed assets||9,557||9,560||11,055|
|Total non-performing assets||$||20,765||$||22,532||$||25,564|
|Non-performing assets to total assets||2.50||%||2.69||%||3.15||%|
|Allowance for Loan Losses to Total Loans||1.73||1.76||3.07|
The Company’s unaudited condensed consolidated balance sheets are as follows:
|Cash and due from financial institutions||$||20,941||$||19,039|
|Interest-bearing deposits in other financial institutions||10,087||32,305|
|Securities available for sale||194,839||251,205|
|Loans held for sale||363||1,225|
|Loans, net of allowance for loan losses of $9,509 and $8,762||538,604||456,827|
|Federal Home Loan Bank and Federal Reserve stock||5,990||5,998|
|Accrued interest receivable||3,160||3,014|
|Premises and equipment, net||18,674||14,094|
|Cash surrender value of life insurance||21,220||20,709|
|Other intangible assets||1,088||638|
|Foreclosed and repossessed assets||9,557||6,345|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Federal Home Loan Bank advances||40,000||40,000|
|Accrued interest payable||103||177|
|Total stockholders’ equity||85,240||86,442|
|Total Liabilities and Stockholders’ Equity||$||831,185||$||819,500|
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 2012 Form 10-K and subsequent 10-Q’s filed with the Securities and Exchange Commission.
- Banking & Budgeting
- net interest income
- Community Bank
- net income
Paul Chrisco, CFO, 812-981-7375