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| 8-K - 8-K CURRENT REPORT - Your Community Bankshares, Inc. | v367332_8k.htm |
Community Bank Shares of Indiana, Inc. reports 4th quarter net income available to common shareholders of $2.2 million, or $0.66 per diluted common share
New Albany, Ind. (February 5, 2014) – Community Bank Shares of Indiana, Inc. reported fourth quarter net income available to common shareholders of $2.2 million and earnings per diluted common share of $0.66, an increase of 9.07% and 10.0% from the same periods in 2012, respectively. Net income available to common shareholders for the year ended December 31, 2013 was $7.9 million, a 13.64% increase from $6.9 million in 2012 while earnings per diluted common share increased to $2.32 from $2.06, a 12.6% increase.
“2013 was an outstanding year for the Company. We expanded our footprint into the Lexington, Kentucky market, improved our credit quality, and reported the highest net income in our history. For 2014, we will continue to focus on profitably growing the Company and serving our customers,” stated James Rickard, President and Chief Executive Officer.
“Our previously announced first quarter dividend increase to $0.12 per share is the result of our continued earnings improvement and strong capital position. Our goal is to prudently leverage our capital while providing value to our shareholders. We will continue to pursue sensible organic growth but will also be open to acquisitions that make sense strategically.”
The following points summarize significant financial information for the fourth quarter of 2013:
| · | Net income available to common shareholders was $2.2 million. |
| · | Tangible book value per common share of $17.48 as of December, 2013. |
| · | Fully tax equivalent net interest margin was 4.20%, an increase from 4.01% for the same period in 2012; net interest income increased to $7.9 million from $7.1 million. |
| · | Provision for loan losses was $618,000, a decrease from $800,000 for the same quarter in 2012. The decrease was due to reduction in the allocation for non-impaired loans. |
| · | Non-interest income decreased to $1.7 million for the fourth quarter of 2013 compared to $2.4 million in 2012. The decrease was from a reduction in net gains on sales of securities which declined to $199,000 in the fourth quarter of 2013 from $767,000 in 2012. |
| · | Non-interest expense remained flat compared to the fourth quarter of 2012 at $6.2 million. |
The following points summarize significant financial information for the year ended December 31, 2013:
| · | Net income available to common shareholders was $7.9 million, or $2.32 per diluted common share, as compared to $6.9 million and $2.06 for 2012. |
| · | Fully tax equivalent net interest margin was 4.24%, an increase from 4.08% for 2012; net interest income increased to $31.0 million from $28.8 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 $3.4 million as compared to $4.1 million in 2012. Overall, the Company experienced an improvement in its credit quality trends with non-accrual loans declining to $7.8 million as of December 31, 2013 from $8.7 million as of December 31, 2012. Of the total provision for the year, $2.0 million was attributable to the downgrade of one commercial land development relationship during the second quarter. |
| · | Non-interest expenses increased in 2013 to $26.1 million due to integration and acquisition, personnel, and occupancy costs associated with the former First Federal branches. |
The Company’s unaudited consolidated condensed statements of income and credit quality metrics are as follows:
| Three Months Ended | ||||||||||||
| December 31, | September 30, | |||||||||||
| 2013 | 2012 | 2013 | ||||||||||
| (In thousands, except per share data) | ||||||||||||
| Interest income | $ | 8,422 | $ | 7,889 | $ | 8,732 | ||||||
| Interest expense | 546 | 821 | 504 | |||||||||
| Net interest income | 7,876 | 7,068 | 8,228 | |||||||||
| Provision for loan losses | 618 | 800 | 75 | |||||||||
| Non-interest income | 1,711 | 2,358 | 1,580 | |||||||||
| Non-interest expense | 6,240 | 6,213 | 7,034 | |||||||||
| Income before income taxes | 2,729 | 2,413 | 2,699 | |||||||||
| Income tax expense | 433 | 458 | 439 | |||||||||
| Net income | $ | 2,296 | $ | 1,955 | $ | 2,260 | ||||||
| Preferred stock dividends | (72 | ) | (131 | ) | (221 | ) | ||||||
| Net income available to common shareholders | $ | 2,224 | $ | 1,824 | $ | 2,039 | ||||||
| Basic earnings per common share | $ | 0.66 | $ | 0.54 | $ | 0.60 | ||||||
| Diluted earnings per common share | $ | 0.66 | $ | 0.54 | $ | 0.60 | ||||||
| Twelve Months Ended | ||||||||
| December 31, | ||||||||
| 2013 | 2012 | |||||||
| (In thousands, except per share data) | ||||||||
| Interest income | $ | 33,253 | $ | 32,826 | ||||
| Interest expense | 2,227 | 4,030 | ||||||
| Net interest income | 31,026 | 28,796 | ||||||
| Provision for loan losses | 3,410 | 4,101 | ||||||
| Non-interest income | 8,684 | 8,423 | ||||||
| Non-interest expense | 26,071 | 23,748 | ||||||
| Income before income taxes | 10,229 | 9,370 | ||||||
| Income tax expense | 1,562 | 1,685 | ||||||
| Net income | $ | 8,667 | $ | 7,685 | ||||
| Preferred stock dividends | (802 | ) | (764 | ) | ||||
| Net income available to common shareholders | $ | 7,865 | $ | 6,921 | ||||
| Basic earnings per common share | $ | 2.32 | $ | 2.06 | ||||
| Diluted earnings per common share | $ | 2.32 | $ | 2.06 | ||||
Credit quality metrics are as follows (in thousands):
| As of | ||||||||||||
| December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||
| Loans on non-accrual status | $ | 7,787 | $ | 11,208 | $ | 8,718 | ||||||
| Loans past due 90 days or more and still accruing | - | - | - | |||||||||
| Foreclosed and repossessed assets | 5,988 | 9,557 | 6,345 | |||||||||
| Total non-performing assets | $ | 13,775 | $ | 20,765 | $ | 15,063 | ||||||
| Non-performing assets to total assets | 1.62 | % | 2.50 | % | 1.84 | % | ||||||
| Allowance for Loan Losses to Total Loans | 1.43 | 1.73 | 1.88 | |||||||||
The Company’s unaudited condensed consolidated balance sheets are as follows:
| December 31, 2013 | December 31, 2012 | |||||||
| (In thousands) | ||||||||
| ASSETS | ||||||||
| Cash and due from financial institutions | $ | 15,393 | $ | 19,039 | ||||
| Interest-bearing deposits in other financial institutions | 10,896 | 32,305 | ||||||
| Securities available for sale | 195,327 | 251,205 | ||||||
| Loans held for sale | 68 | 1,225 | ||||||
| Loans, net of allowance for loan losses of $8,009 and $8,762 | 552,926 | 456,827 | ||||||
| Federal Home Loan Bank and Federal Reserve stock | 5,955 | 5,998 | ||||||
| Accrued interest receivable | 3,149 | 3,014 | ||||||
| Premises and equipment, net | 18,557 | 14,094 | ||||||
| Cash surrender value of life insurance | 21,386 | 20,709 | ||||||
| Other intangible assets | 1,004 | 638 | ||||||
| Foreclosed and repossessed assets | 5,988 | 6,345 | ||||||
| Other assets | 17,687 | 8,101 | ||||||
| Total Assets | $ | 848,336 | $ | 819,500 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Deposits | ||||||||
| Non interest-bearing | $ | 187,207 | $ | 169,411 | ||||
| Interest-bearing | 456,418 | 455,256 | ||||||
| Total deposits | 643,625 | 624,667 | ||||||
| Other borrowings | 45,722 | 45,500 | ||||||
| Federal Home Loan Bank advances | 50,000 | 40,000 | ||||||
| Subordinated debentures | 17,000 | 17,000 | ||||||
| Accrued interest payable | 106 | 177 | ||||||
| Other liabilities | 3,544 | 5,714 | ||||||
| Total liabilities | 759,997 | 733,058 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Total stockholders’ equity | 88,339 | 86,442 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 848,336 | $ | 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.
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CONTACT:
Paul Chrisco
CFO
Community Bank Shares of Indiana, Inc.
812-981-7375