Your Community Bankshares, Inc. - FORM 8-K - EX-99.1

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Exhibit 99.1

Your Community Bankshares, Inc. reports 3rd quarter net income available to common shareholders of $3.8 million, or $0.70 per diluted common share

New Albany, Ind. (November 9, 2015) — Your Community Bankshares, Inc. (YCB) reported third quarter net income available to common shareholders of $3.8 million and earnings per diluted common share of $0.70, compared to $2.2 million, or $0.63 per diluted common share, for the same period in 2014. Excluding merger and integration expenses resulting from the acquisition of First Financial Service Corporation of Elizabethtown, Kentucky (“FFKY”), the consolidation of the Company’s two subsidiary banks, and a non-taxable gain on recognition of life insurance benefit of $835,000, net income available to common shareholders for the quarter would have been $3.9 million or $0.71 per diluted common share (see “Regulation G Disclosure” below).

“We were very pleased with third quarter earnings,” stated James Rickard, President and Chief Executive Officer. “We recognized some non-recurring items that materially impacted the income statement in the third quarter, but achieve quarterly record earnings after factoring out those items. We also realized a significant improvement in our credit quality ratios during the quarter. We are in the process of finalizing a bulk loan sale that will eliminate a substantial portion of our non-performing assets from the balance sheet.”

Mr. Rickard continued, “While we took a sizable charge related to the closing of one of our underperforming branches, the cost savings going forward are very meaningful to the bottom line. We expect to save about $0.045 per share per year starting around March 1, 2016. While not as significant, we have some other cost savings initiatives that will benefit our results starting late in the fourth quarter of 2015. One involves closing a drive through facility which has seen declining transactions, and the other is converting an underperforming branch to a drive through only location.”

The following points summarize significant financial information for the third quarter of 2015:

· Net income for the third quarter of 2015 was $3.9 million while net income available to common shareholders was $3.8 million. Excluding merger and integration expenses of $1.4 million ($913,000, net of tax) and non-taxable gain on recognition of life insurance benefit of $835,000, net income would have been $4.0 million (see “Regulation G Disclosure” below).

· Non-performing assets to total assets declined to 0.86% at September 30, 2015 from 1.31% at June 30, 2015. Non-accrual loans declined from $12.2 million at June 30, 2015 to $4.5 million at September 30, 2015. Foreclosed and repossessed assets increased from $8.4 million to $9.0 million over the same period.

· The decrease in non-performing assets and non-accrual loans was due to the reclassification of loans with a carrying value of $20.7 million to loans held for sale. The Company is currently in negotiations to sell these loans to third party purchasers, with the sale expected to be completed sometime during the fourth quarter of 2015. Of the total loans reclassified to loans held for sale, $5.0 million were non-accrual and were excluded from the Company’s credit quality metrics.

· Tangible book value per common share was $21.33 as of September 30, 2015 as compared to $20.55 at 12/31/2014 and $19.66 at September 30, 2014.

· The Company is closing its financial center located at 12629 Taylorsville Road, Louisville, KY 40299 sometime during the middle of the first quarter of 2016. The Company leases the land and owns the building and incurred approximately $99,000 in non-interest expense related to the operations of this location during third quarter of 2015. The Company entered into a sublease with a third party and took a charge of $972,000 related to the transaction. Consequently, the Company expects to recognize approximately $400,000 in annual pre-tax cost savings starting on March 1, 2015.

· The Company will close its drive through located at 401 E. Spring Street, New Albany, IN 47150 on November 20, 2015, which will allow the Company to avoid approximately $60,000 in non-interest expense per year starting on the closing date. The Company recognized approximately $15,500 of expense for this facility during the third quarter of 2015.

· The Company will close the lobby of its location located at 1671 N. Wilson Road, Radcliff, KY 40160 effective November 20, 2015. The Company will continue to operate a drive through and an ATM at this location. The Company recognized

approximately $50,000 of expense for this facility during the third quarter of 2015, of which about $17,000 would have been avoided if the facility had been operated as drive through only. Consequently, the Company expects to avoid approximately $70,000 in non-interest expense per year starting on the closing date.

· Net interest income declined to $13.4 million from $13.9 million in the second quarter of 2015 due primarily to the recognition of $300,000 in interest income from a loan reclassified from non-accretable yield to accretable in the second quarter of 2015. The loan was acquired in the acquisition of First Federal Savings Bank of Lexington, Kentucky in April 2013. Net interest income was also impacted by higher costs on other borrowings.

· Fully tax equivalent net interest margin was 3.94%, a decline from 4.04% for the second quarter of 2015. The decrease in the margin was attributable to the same factors that drove the decrease in net interest income.

· The Company recorded no provision for loan losses during the quarter, a decrease from $166,000 for the same quarter in 2014 and $2.2 million for the second quarter of 2016, primarily because of generally improving credit quality metrics and lower net charge-offs.

· Non-interest income increased to $3.5 million compared to $2.7 million for the second quarter of 2015. The increase was mostly attributable to a gain on recognition of life insurance benefit of $835,000. Excluding the gain, non-interest income would have been $2.7 million or $22,000 more than the prior quarter.

· Non-interest expense was $12.7 million as compared to $10.5 million for the second quarter of 2015. The increase was due to merger and integration expenses in the third quarter of $1.4 million compared to $156,000 in the second quarter. Excluding the merger and integration expenses of $1.4 million non-interest expense would have been $11.2 million. The increase in core non-interest expenses from the second quarter is largely attributable to higher incentive and stock compensation in the third quarter. The $972,000 in occupancy-related merger and integration expenses for the third quarter of 2015 were completely caused by the prospective closure of the branch located at 12629 Taylorsville Road, Louisville, KY 40299, which the Company acquired through it merger with First Financial Service Corporation (FFKY) of Elizabethtown. Of the $413,000 in data processing-related merger and integration expense, about 36% was related to the merger and data integration of the Company’s wholly-owned subsidiary Scott County State Bank into Your Community Bank. The remaining data processing merger and integration expenses were associated with the acquisition of FFKY; the Company does not expect to incur any additional FFKY-related data processing merger and integration expenses.

· The Company’s effective tax rate was 7.86% during the quarter due to the gain on recognition of life insurance benefit of $835,000, which is non-taxable.

· Beginning March 31, 2015, the Company and its subsidiaries were subject to the new Basel III capital standards and met the definition of well-capitalized under the revised rules as of September 30, 2015.

· Selected performance ratios for the company are set out in the following table.

	Three Months Ended										Nine Months Ended
	September		June		March		December		September		September		September
	30,		30,		31,		31,		30,		30,		31,
	2015		2015		2015		2014		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Return on average assets	0.99	%	0.89	%	(0.23	)%	1.11	%	1.07	%	0.55	%	1.02	%
Return on average assets, excluding merger and integration expenses, net of income taxes, and gain on life insurance benefit	1.22	%	0.92	%	0.37	%	1.17	%	1.12	%	0.76	%	1.07	%
Return on average equity	10.44	%	9.75	%	(2.57	)%	9.83	%	9.59	%	5.93	%	9.44	%
Return on average equity, excluding merger and integration expenses, net of income taxes	10.65	%	10.02	%	4.16	%	10.46	%	10.11	%	8.31	%	9.88	%
Net interest margin, fully tax equivalent	3.94	%	4.04	%	3.87	%	4.52	%	4.28	%	3.95	%	4.22	%
Efficiency ratio (1)	64.56	%	58.85	%	82.07	%	57.15	%	66.15	%	68.31	%	65.06	%

(1) Net interest income on a fully taxable equivalent basis. Excludes gains or losses on sales of securities, foreclosed asset expenses, amortization of intangibles, and merger and integration expenses.

Your Community Bankshares, Inc.

Consolidated Balance Sheets

	September 30, 2015			June 30, 2015 (1)			March 31, 2015 (1)			December 31, 2014			September 30, 2014
	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
				(As Recast)			(As Recast)
							(In thousands)
ASSETS
Cash and due from financial institutions	$	29,618		$	28,947		$	45,784		$	12,872		$	14,540
Interest-bearing deposits in other financial institutions	10,814			32,383			56,290			6,808			5,655
Securities available for sale	403,486			398,292			385,498			202,177			202,174
Loans held for sale	20,896			390			221			—			—
Loans	992,622			1,010,001			1,006,693			603,575			593,124
Allowance for loan losses	(6,416		)	(8,045		)	(7,120		)	(6,465		)	(7,784		)
Federal Home Loan Bank and Federal Reserve stock	3,891			3,807			5,451			4,964			5,964
Accrued interest receivable	5,151			5,083			4,802			3,152			3,028
Premises and equipment, net	30,314			31,462			31,793			18,124			17,986
Premises and equipment held for sale	3,898			5,954			5,974			—			—
Company owned life insurance	32,828			33,348			33,095			22,058			21,887
Goodwill	4,115			4,115			4,115			—			—
Core deposit intangible	5,321			5,634			5,951			682			759
Foreclosed and repossessed assets	9,028			8,337			15,927			4,431			4,677
Other assets	27,121			29,357			27,881			16,368			3,945
Total Assets	$	1,572,687		$	1,589,065		$	1,622,355		$	888,746		$	865,955

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non-interest bearing	$	275,350		$	293,179		$	285,634		$	200,142		$	187,592
Interest-bearing	968,620			1,014,357			1,052,089			450,802			467,619
Total deposits	1,243,970			1,307,536			1,337,723			650,944			655,211
Short-term borrowings	74,034			42,989			39,228			45,818			37,070
Subscription agreement proceeds in escrow	—			—			—			20,774			—
Other borrowings	93,974			84,737			85,611			67,000			72,000
Accrued interest payable	375			703			462			158			87
Other liabilities	8,832			8,741			14,059			4,504			5,099
Total liabilities	1,421,185			1,444,706			1,477,083			789,198			769,467

SHAREHOLDERS’ EQUITY
Preferred stock	28,000			28,000			28,000			28,000			28,000
Common stock	578			578			578			386			386
Additional paid-in capital	90,459			89,791			89,342			44,421			44,085
Retained earnings	36,336			32,228			30,419			32,110			30,196
Accumulated other comprehensive income	2,489			150			3,788			1,809			1,035
Treasury stock	(6,360		)	(6,388		)	(6,855		)	(7,178		)	(7,214		)
Total shareholders’ equity	151,502			144,359			145,272			99,548			96,488
Total Liabilities and Shareholders’ Equity	$	1,572,687		$	1,589,065		$	1,622,355		$	888,746		$	865,955

Book value per common share	$	22.84		$	21.53		$	21.81		$	20.75		$	19.88
Tangible book value per common share	$	21.10		$	19.31		$	19.51		$	20.55		$	19.66

(1) Management obtained information subsequent to the issuance of the June 30, 2015 and March 31, 2015 financial statements about the fair value of assets acquired and liabilities assumed from First Financial Service Corporation which resulted in an adjustment to the initial fair values established. The table below details the adjustments to the June 30, 2015 and March 31, 2015 consolidated balance sheet; there were no adjustments to the consolidated statement of operations for the periods ending June 30, 2015 and March 31, 2015.

	June 30, 2015							March 31, 2015
	As Previously Reported		Recast Adjustments			As Recast		As Previously Reported		Recast Adjustments			As Recast
										(In thousands)
Loans	$	1,005,016	$	4,985		$	1,010,001	$	999,906	$	6,787		$	1,006,693
Premises and equipment held for sale	5,635		319			5,954		6,155		(181		)	5,974
Foreclosed and repossessed assets	8,354		(17		)	8,337		15,818		109			15,927
Other assets (deferred tax asset)	30,647		(1,290		)	29,357		29,430		(1,549		)	27,881
Goodwill	6,375		(2,260		)	4,115		7,544		(3,429		)	4,115
Other borrowings (subordinated debt)	83,000		1,737			84,737		83,874		1,737			85,611

Your Community Bankshares, Inc.

Consolidated Statements of Operations

	Three Months Ended															Nine Months Ended
	September			June			March			December			September			September			September
	30,			30,			31,			31,			30,			30,			30,
	2015			2015			2015			2014			2014			2015			2014
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	(In thousands except share and per data)
Interest and dividend income
Loans, including fees	$	12,361		$	12,787		$	12,523		$	7,911		$	7,317		$	37,671		$	21,039
Investment securities and other	2,334			2,319			2,233			1,322			1,313			6,886			4,002
Interest and dividend income	14,695			15,106			14,756			9,233			8,630			44,557			25,041

Interest expense
Deposits	570			580			574			245			255			1,724			775
Borrowed funds	731			612			698			291			201			2,041			630
Total interest expense	1,301			1,192			1,272			536			456			3,765			1,405
Net interest income	13,394			13,914			13,484			8,697			8,174			40,792			23,636
Provision for loan losses	—			2,155			106			637			166			2,261			638
Net interest income after provision for loan losses	13,394			11,759			13,378			8,060			8,008			38,531			22,998

Non-interest income
Service charges on deposit accounts	1,655			1,669			1,391			854			874			4,715			2,501
Interchange income	575			476			444			287			281			1,495			881
Earnings on company owned life insurance	226			253			252			170			169			731			501
Net gain (loss)on sales of available for sale securities	(1		)	—			51			—			172			50			468
Mortgage banking income	70			74			117			42			40			261			84
Commission income	48			50			47			48			50			145			146
Gain on recognition of life insurance benefit	835			—			—			—			—			835			—
Other income	101			130			110			128			113			341			335
Non-interest income	3,509			2,652			2,412			1,529			1,699			8,573			4,916

Non-interest expense
Salaries and employee benefits	5,619			5,086			9,119			3,276			3,869			19,824			10,602
Occupancy & equipment	2,640			1,672			2,208			966			971			6,520			2,848
Data processing	1,567			921			1,814			670			618			4,302			1,947
Core deposit intangible amortization	312			318			397			78			80			1,027			245
Foreclosed assets, net	119			(95		)	344			118			(148		)	368			43
Other expense	2,395			2,573			4,042			1,444			1,467			9,010			4,252
Total non-interest expense	12,652			10,475			17,924			6,552			6,857			41,051			19,937
Income (loss) before income taxes	4,251			3,936			(2,134		)	3,037			2,850			6,053			7,977
Income tax expense (benefit)	334			371			(1,198		)	600			534			(493		)	1,401
Net income (loss)	3,917			3,565			(936		)	2,437			2,316			6,546			6,576

Preferred stock dividend	(110		)	(109		)	(110		)	(110		)	(110		)	(329		)	(329		)
Net income (loss) available (attributable) to common shareholders	$	3,807		$	3,456		$	(1,046	)	$	2,327		$	2,206		$	6,217		$	6,247

Earnings (loss) per basic share	$	0.70		$	0.64		$	(0.19	)	$	0.68		$	0.64		$	1.15		$	1.82
Earnings (loss) per diluted share	$	0.70		$	0.64		$	(0.19	)	$	0.66		$	0.63		$	1.14		$	1.80
Dividend per common share	$	0.12		$	0.12		$	0.12		$	0.12		$	0.12		$	0.36		$	0.36
Average number of basic shares	5,405,691			5,383,887			5,374,819			3,446,486			3,443,787			5,388,245			3,434,660
Average number of dilutive shares	5,470,557			5,437,602			5,374,819			3,499,951			3,480,816			5,457,205			3,472,792

Merger and integration expenses contained in:
Salaries and employee benefits	—			60			2,105			—			—			2,165			—
Occupancy & equipment	972			—			310			—			—			1,282			—
Data processing	413			27			719			—			—			1,159			—
Other expense	20			69			633			238			190			722			459
Total merger and integration expenses	1,405			156			3,767			238			190			5,328			459
Total merger and integration expenses, net of income taxes	913			101			2,486			157			125			3,463			302

Your Community Bankshares, Inc.

Average Balances, Interest Yields and Costs

	Three Months Ending,
	9/30/2015					6/30/2015					03/31/2015					12/31/2014					09/30/2014
	Average Balance			Average Yield/ Cost		Average Balance			Average Yield/ Cost		Average Balance			Average Yield/ Cost		Average Balance			Average Yield/ Cost		Average Balance			Average Yield/ Cost
	(In thousands)
ASSETS
Earning assets:
Interest-bearing deposits with banks	$	17,489		0.73	%	$	48,008		0.41	%	$	63,092		0.36	%	$	6,113		0.39	%	$	14,424		0.51	%
Taxable securities	283,885			1.78		288,420			1.84		318,695			1.71		117,961			1.78		109,297			1.76
Tax-exempt securities	112,408			5.35		98,423			5.52		83,217			5.57		80,416			5.49		80,809			5.50
Total loans and fees	1,001,041			4.96		1,000,865			5.17		993,536			5.15		595,578			5.34		592,327			4.97
FHLB and Federal Reserve stock	3,837			4.65		4,860			5.69		6,484			5.94		5,768			3.71		5,964			4.78
Total earning assets	1,418,660			4.30		1,440,576			4.37		1,465,024			4.22		805,836			4.78		802,621			4.50
Less: Allowance for loan losses	(7,757		)			(7,532		)			(6,838		)			(7,743		)			(8,505		)
Non-earning assets:
Cash and due from banks	32,263					35,902					38,987					22,388					16,032
Bank premises and equipment, net	36,869					37,778					38,135					17,959					18,143
Other assets	92,150					96,967					124,855					40,034					38,889
Total assets	$	1,572,185				$	1,603,691				$	1,660,163				$	878,474				$	867,180

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing liabilities:
Savings and other	$	652,860		0.15	%	$	688,831		0.15	%	$	697,094		0.15	%	$	338,104		0.18	%	$	338,092		0.18	%
Time deposits	339,480			0.37		352,394			0.36		377,230			0.33		133,684			0.28		138,573			0.28
Short-term borrowings	50,067			0.32		39,033			0.24		38,253			0.23		42,819			0.24		35,879			0.21
Other borrowings	86,752			3.16		83,170			2.84		87,999			3.12		71,837			1.46		57,707			1.25
Total interest-bearing liabilities	1,129,159			0.46		1,163,428			0.41		1,200,576			0.43		586,444			0.36		570,251			0.32

Non-interest bearing liabilities:
Non-interest demand deposits	285,743					283,101					279,879					185,844					195,011
Accrued interest payable and other liabilities	8,478					10,453					32,251					7,800					6,127
Shareholders’ equity	148,805					146,709					147,457					98,386					95,791
Total liabilities and shareholders’ equity	$	1,572,185				$	1,603,691				$	1,660,163				$	878,474				$	867,180

Net interest spread				3.84	%				3.96	%				3.79	%				4.42	%				4.18	%
Net interest margin				3.94					4.04					3.87					4.52					4.28

Accretion and Amortization of Fair Value Adjustments

	Three Months Ending,
	9/30/2015				6/30/2015				03/31/2015				12/31/2014				09/30/2014
	Fair Value Accretion		Impact on Net Interest Margin		Fair Value Accretion		Impact on Net Interest Margin		Fair Value Accretion		Impact on Net Interest Margin		Fair Value Accretion		Impact on Net Interest Margin		Fair Value Accretion		Impact on Net Interest Margin
	(In thousands)
Loans	$	648	0.18	%	$	1,016	0.28	%	$	601	0.17	%	$	775	0.38	%	$	126	0.06	%
Interest-bearing deposits	432		0.12		475		0.13		542		0.15		—		0.00		—		0.00
FHLB advances	63		0.02		62		0.02		62		0.02		—		0.00		—		0.00
Subordinated debentures	40		0.01		36		0.01		33		0.01		—		0.00		—		0.00
Total fair value accretion	$	1,183	0.33	%	$	1,589	0.44	%	$	1,238	0.34	%	$	775	0.38	%	$	126	0.06	%

Your Community Bankshares, Inc.

Selected Loan Information

	September 30, 2015			June 30, 2015 (1)			March 31, 2015 (1)			December 31, 2014			September 30, 2014
	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
				(As recast)			(As recast)
	(In thousands)
ACQUIRED LOANS
Loans on non-accrual status	$	2,257		$	6,168		$	10,368		$	96		$	178
Loans past due 90 days or more and still accruing	—			—			—			—			—
Foreclosed and repossessed assets	5,790			4,849			12,409			254			126
Total non-performing assets	8,047			11,017			22,777			350			304

Non-accretable yield on acquired loans	10,949			16,246			16,752			571			849

LEGACY LOANS
Loans on non-accrual status	2,229			6,016			7,354			7,439			9,031
Loans past due 90 days or more and still accruing	—			220			803			—			55
Foreclosed and repossessed assets	3,238			3,505			3,535			4,177			4,551
Total non-performing assets	5,467			9,741			11,692			11,616			13,637

Total Legacy Loans	667,281			625,624			588,076			570,864			556,525
Allowance for loan losses	6,416			8,045			7,120			6,465			7,784

Allowance for loan losses to legacy loans	0.96		%	1.29		%	1.21		%	1.13		%	1.40		%

TOTAL LOANS
Loans on non-accrual status	$	4,486		$	12,184		$	17,722		$	7,535		$	9,209
Loans past due 90 days or more and still accruing	—			220			803			—			55
Foreclosed and repossessed assets	9,028			8,354			15,944			4,431			4,677
Total non-performing assets	13,514			20,759			34,469			11,966			13,941

Non-performing assets to total assets	0.86		%	1.31		%	2.13		%	1.35		%	1.61		%
Allowance for loan losses to total loans	0.65		%	0.79		%	0.70		%	1.06		%	1.30		%

(1) Management obtained information subsequent to the issuance of the June 30, 2015 and March 31, 2015 financial statements about the fair value of assets acquired from First Financial Service Corporation which resulted in an adjustment to the initial fair values established. The adjustments are reflected in the selected loan information reported as June 30, 2015 and March 31, 2015 above.

Reconciliation of Fully Tax Equivalent Adjustments to GAAP Net Interest Income

	9/30/2015				6/30/2015				3/31/2015				12/31/2014				9/30/2014
	Net Interest Income		Yield		Net Interest Income		Yield		Net Interest Income		Yield		Net Interest Income		Yield		Net Interest Income		Yield
	(In thousands)
GAAP net interest income	$	13,394	3.75	%	$	13,914	3.87	%	$	13,484	3.73	%	$	8,697	4.28	%	$	8,174	4.04	%

Tax equivalent adjustment
Investment securities	530		0.15		474		0.14		400		0.11		379		0.19		381		0.19
Loans	154		0.04		115		0.03		102		0.03		100		0.05		100		0.05
Total tax equivalent adjustment	684		0.19		589		0.17		502		0.14		479		0.24		481		0.24

Tax equivalent net interest income	14,078		3.94	%	14,503		4.04	%	13,986		3.87	%	9,176		4.52	%	8,655		4.28	%

Regulation G Disclosure

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission (the “SEC”). The Company believes that these non-GAAP financial measures provide information that is useful to the users of its financial information regarding the Company’s financial condition and results of operations. Additionally, the Company uses these non-GAAP measures to evaluate its past performance and prospects for future performance. The Company believes that this non-GAAP financial information is helpful in understanding the results of operations separate and apart from items that may, or could, have a disproportional positive or negative impact in any particular period.

While the Company believes that these non-GAAP financial measures are useful in evaluating Company performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with U.S. GAAP. Further, these non-GAAP financial measures may differ from similar measures presented by other companies.

The Company recognized expenses associated with its acquisition of First Financial Service Corporation during the three months ended September 30, 2015 which substantially impacts the reported financial results for those periods. The Company believes excluding the charge provides investors and other interested parties with an additional meaningful measure to evaluate the Company’s results of operations.

	Three Months Ended September 30, 2015			Earnings per diluted common share impact
	(In thousands)
Net income available to common shareholders reconciliation:
Net income available to common shareholders as reported	$	3,807		$	0.70
Less: Merger and integration expenses reported in non-interest expense	1,405			0.26
Less: Tax effect of merger and integration charges	(492		)	(0.09		)
Net income available to common shareholders excluding merger and integration expense and related tax effect	$	4,720		$	0.86
Less: Non-taxable gain on recognition of life insurance benefit	835			0.15
Net income available to common shareholders excluding merger and integration expense and related tax effect and non-taxable gain on life insurance benefit	$	3,885		$	0.71
Net income reconciliation:
Net income as reported	$	3,917
Less: Merger and integration expenses reported in non-interest expense	1,405
Less: Tax effect of merger and integration charges	(492		)
Net income excluding merger and integration expense and related tax effect	$	4,830
Less: Non-taxable gain on recognition of life insurance benefit	835
Net income available to common shareholders excluding merger and integration expense and related tax effect and non-taxable gain on life insurance benefit	$	3,995
Non-interest income reconciliation:
Non-interest income as reported	$	3,509
Less: Merger and integration charges	835
Non-interest income excluding non-taxable gain on life insurance benefit	$	2,674
Non-interest expense reconciliation:
Non-interest expense as reported	$	12,652
Less: Merger and integration charges	1,405
Non-interest expense excluding merger and integration expense	$	11,247

About Your Community Bankshares, Inc.

Your Community Bankshares, Inc. is a bank holding company headquartered in New Albany, Indiana and includes its wholly owned, state-chartered subsidiary bank, Your Community Bank. The Company operates 36 financial centers in Indiana and Kentucky. The Banks are engaged primarily in the business of attracting deposits from the general public and using such funds for the origination of commercial business and real estate loans and secured consumer loans such as home equity lines of credit, automobile loans, and recreational vehicle loans. Additionally, the Banks originate and sell into the secondary market mortgage loans for the purchase of single-family homes. For more information visit www.yourcommunitybank.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 2014 Form 10-K and subsequent 10-Q filed with the Securities and Exchange Commission.

###

CONTACT:

Paul Chrisco
CFO

Your Community Bankshares, Inc.

812-981-7375

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