CIBN Community Investors Bancorp Inc (PK)

BUCYRUS, Ohio, May 2, 2014 /PRNewswire/ -- Community Investors Bancorp, Inc. (Pink Sheets: CIBN),  parent company of First Federal Community Bank of Bucyrus, reported net earnings available to common shareholders of $303,000, or $.38 per common share for the nine months ended March 31, 2014, representing an increase of $253,000, compared to the net earnings of $50,000, or $.06 per common share reported for the nine months ended March 31, 2013.  The increase in 2014 earnings reflects an increase in net interest income of $116,000 (3.7%), a decrease in provision for loan losses of $269,000 and an increase in other income $48,000 (6.2%). In addition, preferred dividends were reduced by $84,000 to $-0- as a result of the redemption of our preferred shares completed in March 2013. This was partially offset by an increase in general, administrative and other expenses of $197,000 (6.3%). The increase in net interest income reflects stabilization of interest rate margins in a continuing low interest rate environment as well as increased loan demand. The reduction in provision for loan losses reflects a large write off from March 2013 which cleaned up a large troubled credit. Our classified assets remain elevated but decreasing. We continue to work to help our distressed loan customers who make good faith efforts at repayment while we recognize potential losses on a timely basis. Increases in other income are largely related to the expansion of our secondary mortgage loan market. Those new markets also increased our general, administrative and other expenses along with increased loan administration costs, regulatory compliance expense, and costs related to bank-owned properties.  We continue to seek new opportunities and customers in all of our markets with a renewed emphasis on our newer locations. We expect continuing improvement in our classified asset, controlled growth in  all of our markets and improved operational efficiency to achieve a higher level of profitability.

Community Investors Bancorp, Inc. reported total assets at March 31, 2014, of $126.2 million (increase of $6.9 million or 5.8% from June 30, 2013) including gross loans of $93.6 million (increase of $8.3 million or 9.7% from June 30, 2013). Investments decreased by $2.5 million (13.5%), while the allowance for loan loss decreased by $220,000 (13.3%) since June 30, 2013. Total loans classified as substandard decreased by $1,084,000 from June 30, 2013 to $3.9 million, while total nonperforming assets (nonaccrual loans plus bank owned real estate) decreased by $607,000 to $1.9 million. Deposits increased by $3.0 million (3.1%) from June 30, 2013. We borrowed an additional $4.5 million from the Federal Home Loan Bank at favorable rates. Total liabilities were $115.6 million increase of $6.6 million (6.1%) from June 30, 2013). Total stockholders' equity increased by $321,000 to $10.7 million. As a result of the growth of our balance sheet, our capital as a percentage of assets decreased from 8.67% to 8.44%.

As we reduce our classified assets, improve profitability, and grow strategically, we continue to prudently manage interest rate risk, liquidity and maintain our capital levels commensurate with growth in assets and profitability. As you know, we were also very pleased to reinstate paying a dividend during the quarter to reward our patient investors. Future earnings releases should be expected within 45 days of the end of each quarter.

SOURCE Community Investors Bancorp, Inc.