CIBN Community Investors Bancorp Inc (PK)

BUCYRUS, Ohio, Dec. 2, 2014 /PRNewswire/ -- Community Investors Bancorp, Inc. (Pink Sheets: CIBN), parent company of First Federal Community Bank of Bucyrus, reported net earnings of $227,000, or $.29 per basic share, for the quarter ended September 30, 2014, representing an increase of $73,000, (47.4%), compared to the net earnings of $154,000, or $.19 per basic share, reported for the quarter ended September 30, 2013.  The increase in 2014 earnings reflects an increase in net interest income of $205,000 (20.1%) and an increase in other income of $53,000 (13.8%). This was partially offset by an increase in general, administrative and other expense of $116,000 (10.8%) and an increase in provision for loan loss of $31,000 (27.9%). The increase in net interest income reflects the growth in our loan portfolio, some improvement in nonaccruals as well as continuing low deposit and borrowing rates. General, administrative and other expenses remain high as we continue to upgrade our systems to ensure our preparedness for disaster recovery and we continue to expand our secondary market operations. The provision for loan losses reflects continuing cleanup of troubled credits as well as positioning the Bank for eventual changes in our model for calculation of allowance for doubtful accounts. Our classified assets have improved but remain stubbornly high. Through working with our distressed loan customers who make good faith efforts at repayment, we have had success in avoiding foreclosures. We also continue to aggressively write down our past due loans to recognize the losses as soon as they are reasonably estimable. Loan administration costs, regulatory compliance expense, and professional expenses related to upgrading our systems remain very high. Other income increases resulted from our gains on sales of mortgages into the secondary market. Our geographic reach now extends into Florida with a new secondary mortgage loan production office and we will continue to explore other opportunities for growth and expansion. We have started to see results and continue to challenge ourselves and our associates to attain a high level of profitability, through additional controlled growth and operational efficiency.   

Community Investors Bancorp, Inc. reported total assets at September 30, 2014, of $131.6 million (increase of $1.3 million or 1.0% from June 30, 2014) including gross loans of $102.8 million (increase of $.3 million or .3% from June 30, 2014). Investments decreased by $162,000 (1.1%), while the allowance for loan loss decreased by $149,000 (10.3%) since June 30, 2014. Total loans classified as substandard decreased by $473,000 to $3.7 million, with $2.3 million on nonaccrual status. Deposits decreased by $1.6 million (1.7%) from June 30, 2014. We borrowed an additional $2.5 million from the Federal Home Loan Bank at favorable rates. Total liabilities were $120.6 million (increase of $1.1 million or .9% from June 30, 2014). Total stockholders' equity increased by $196,000 to $11.0 million. As a result of the growth of our balance sheet, our capital as a percentage of assets increased to 8.37% from 8.30% at June 30, 2014.

Our goals remain unchanged. We need to reduce our classified assets, to grow strategically, and restore high profitability, while we prudently manage interest rate risk in an unusual period of low interest rates and low growth. We plan to rebuild our capital levels commensurate with that growth in assets and profitability. We apologize for the delay in this release of the current quarterly earnings. We anticipate future releases within 45 days of the end of each quarter.   

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SOURCE Community Investors Bancorp, Inc.