CIBN Community Investors Bancorp Inc (PK)

BUCYRUS, Ohio, Aug. 15, 2013 /PRNewswire/ -- Community Investors Bancorp, Inc., parent company of First Federal Community Bank of Bucyrus, reported net earnings of $80,000, or $.10 per basic share, for the year ended June 30, 2013, representing a decrease of $349,000, (81.4%), compared to the net earnings of $429,000, or $.49 per basic share, reported for the year ended June 30, 2012.  The decrease in 2013 earnings reflects a decrease in net interest income of $268,000 (6.1%), an increase in provision for loan loss of $261,000 (48.6%) and an increase in general administrative and other expenses of $323,000 (7.4%). This was partially offset by an increase in other income of $236,000 (17.2%), as well as the decrease in preferred dividends of $58,000 as a result of the redemption of our preferred shares completed in March 2013. The decrease in net interest income reflects the difficulty of managing interest rate margins in a historically low interest rate environment as well as a lack of new loan demand. The provision for loan losses reflects a large write-off of a troubled credit which occurred in the quarter ended March 31, 2013. Though our classified assets remain at unacceptably high levels, we continue to work with our distressed loan customers. Loan administration costs, regulatory compliance expense, and costs related to bank-owned properties remain elevated. Professional expenses related to the redemption of our preferred stock as well as the termination of our ESOP plan also contributed to the increase in general, administrative and other expenses. Other income increases resulted from our gains on sales of mortgages into the secondary market. We have already started the process of remaking our Bank and our attitude as we celebrate our 125^th anniversary. We have expanded our geographic reach into northeast Ohio with a new secondary mortgage loan production office. We have raised the expectations for ourselves and our associates to make the changes required to return to a high level of profitability, through controlled growth and additional operational efficiency.   

Community Investors Bancorp, Inc. reported total assets at June 30, 2013, of $119.3 million (decrease of $11.0 million or 8.5% from 2012) including gross loans of $85.3 million (decrease of $1.1 million or 1.2% from 2012). Our investments decreased by $5.1 million (21.7%) as we took the opportunity to harvest some gains. The allowance for loan loss decreased by $25,000 (1.5%) since June 30, 2012. Total loans classified as substandard decreased by $175,000 to $4.9 million. Deposits decreased by $7.7 million (7.4%) from June 30, 2012. Total liabilities were $109.0 million (decrease of $7.8 million or 6.7% from June 30, 2012). Total stockholders' equity decreased by $3.3 million to $10.3 million as a result of the buyback of our preferred stock, which also eliminates preferred dividends ($84,000 in 2013). 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 8.67%.

Our goals remain 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.