CIBN Community Investors Bancorp Inc (PK)

BUCYRUS, Ohio, June 3, 2013 /PRNewswire/ -- Community Investors Bancorp, Inc. (Pink Sheets: CIBN), parent company of First Federal Community Bank of Bucyrus, reported net earnings of $50,000, or $.06 per basic share, for the nine months ended March 31, 2013 representing a decrease of $260,000, compared to the net earnings of $310,000, or $.35 per basic share, reported for the nine months ended March 31, 2012.  The decrease in 2013 earnings reflects a decrease in net interest income of $195,000 (5.9%), an increase in provision for loan loss of $214,000 (59.1%), as well as an increase in general, administrative and other expenses of $145,000 (4.4%). This was partially offset by a $125,000 (12.7%), increase in other income. The decrease in net interest income reflects the continuing struggle to manage interest rate margins in a historically low interest rate environment coupled with a lack of new loan demand. Other income increases resulted from our gains on sales of mortgages into the secondary market.  The provision for loan losses reflects a large write-off of a troubled credit which occurred in the quarter ended March 31, 2013. Though we have had success in working with some of our economically distressed loan customers, our classified assets remain at unacceptably high levels. Difficult economic conditions continue for our customers. The regulatory burden continues to increase and general, administrative and other expenses reflect these increasing costs. Loan administration costs, compliance expense and costs related to bank-owned properties remain elevated. But we have begun to remake our Bank and our attitude as we celebrate our 125^th anniversary. We are expanding our geographic reach into northeast Ohio with a new secondary mortgage loan production office. We are elevating the expectations for ourselves and our associates to make the changes required to return to a high level of profitability.    

Community Investors Bancorp, Inc. reported total assets at March 31, 2013, of $126.1 million (decrease of $4.4 million or 3.3% from June 30, 2012). Our investments decreased by $4.1 million (17.7%) as we took the opportunity to harvest some gains. The allowance for loan loss decreased by $190,000 (11.3%) since June 30, 2012. Total loans classified as substandard decreased by $835,000 to $5.1 million. Deposits decreased by $1.5 million (1.4%) from June 30, 2012. Total liabilities were $115.5 million (decrease of $1.3 million or 1.1% from June 30, 2012). Total stockholders' equity decreased by $3.0 million to $10.6 million as a result of the buyback of our preferred stock in the quarters ended March 31,2013 and December 31, 2012. In addition, we fully redeemed the remaining 60,398 ESOP shares outstanding at June 30, 2012 as part of the termination of our ESOP. Our capital as a percentage of assets decreased from 10.43% to 8.39%. This repurchase allows us to improve our annual earnings available to common shareholders by $142,000 or $.18 per common share.

Our goals are to reduce our classified assets, to grow strategically, and restore high profitability, while we prudently mitigate interest rate risk and manage liquidity. We expect to rebuild our capital levels commensurate with that growth in assets and profitability. Future earnings releases should be expected within 45 days of the end of each quarter.    

SOURCE Community Investors Bancorp, Inc.