Community Bank Shares of Indiana, Inc. Reports 4th Quarter Net Income Available to Common Shareholders of $1.8 Million and Full Year Net Income Available to Common Shareholders of $6.9 Million, or $2.06 Per Diluted Common Sh

Tue Jan 29, 2013 3:52pm EST

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130129:nBw296695a

http://www.businesswire.com/news/home/20130129006695/en

NEW ALBANY, Ind.--(Business Wire)--
Community Bank Shares of Indiana, Inc. reported fourth quarter net income
available to common shareholders of $1.8 million and earnings per diluted common
share of $0.54. Net income available to common shareholders increased during the
fourth quarter by 13.64% as compared to the same period last year. Net income
available to common shareholders for 2012 was $6.9 million, a 14.76% increase
from $6.0 million in 2011. 

James Rickard, President and Chief Executive Officer, commented, "Earnings per
share increased 14.76% over the prior year. We achieved this increased operating
performance by stabilizing our net interest margin, finding ways to supplement
certain declining sources of non-interest income, and prudently managing our
controllable expenses. This was accomplished while continuing to invest in our
people, our information systems, and the future of our Company. We believe in
our relationship banking model and will continue to look for opportunities to
drive more value for our team members, customers, and shareholders." 

"The economic environment remains challenging for our industry, and sustained
low interest rates will continue to put pressure on our net interest margin. The
most effective way to sustain our margin is by putting cash inflows from our
investment and loan portfolios back to work as new commercial loans. We have
increased our sales staff this past year with the strategic goal of growing our
commercial loan portfolio in a profitable and responsible manner. Business
banking in our market area is competitive, but there is also substantial
opportunity." 

"We continue to focus on reducing our non-performing assets," Rickard continued.
"We have not only been impacted by the lost interest income typically associated
with these assets, we also have experienced higher than normal expenses involved
in managing and resolving problem credit relationships. As credit quality
improves, expenses related to the credit administration function will decline.
We recognized some progress in this area during the fourth quarter, with
non-performing assets as a percentage of total assets declining to 1.84% from
3.27% at the end of September. We will concentrate on reducing that number even
further during 2013. Our team is focused on the year ahead and we look forward
to the opportunity that comes with a new year." 

The following points summarize significant financial information for the fourth
quarter of 2012:

* Net income available to common shareholders was $1.8 million. 
* Tangible book value per common share of $17.03 as of December 31, 2012. 
* Net interest margin, on a tax equivalent basis, of 4.01%, a decrease from
4.14% for the same period in 2011. 
* Provision for loan losses was $800,000, a decrease of $51,000 from the quarter
ended September 30, 2012.

The following points summarize significant financial information for 2012:

* Net income available to common shareholders was $6.9 million, or $2.06 per
diluted common share compared to $6.0 million and $1.79 for 2011. 
* Net interest margin, on a tax equivalent basis, of 4.08%, an increase from
4.07% for 2011. 
* Provision for loan losses of $4.1 million, a decrease of $289,000 compared to
2011. 
* Gains on sales of available for sale securities totaled $2.2 million for the
year, a decrease of $317,000 compared to 2011. 
* Non-interest expenses increased 3.89% in 2012 to $23.8 million 
* Shareholders` equity increased from $79.6 million as of December 31, 2011 to
$86.1 million in 2012, mostly due to net income earned in 2012, net of
dividends.

The Company`s unaudited consolidated condensed statements of income and credit
quality metrics are as follows:

                                                     Three Months Ended                                                     
                                                     December 31,                                      September 30,        
                                                     2012                     2011                     2012                 
                                                     (In thousands, except per share data)                                  
 Interest income                                     $     7,889              $     8,488              $      8,144         
 Interest expense                                          821                      1,235                     1,000         
 Net interest income                                       7,068                    7,253                     7,144         
 Provision for loan losses                                 800                      1,698                     851           
 Non-interest income                                       2,358                    2,577                     1,779         
 Non-interest expense                                      6,213                    5,709                     5,677         
 Income before income taxes                                2,413                    2,423                     2,395         
 Income tax expense                                        458                      533                       454           
 Net income                                          $     1,955              $     1,890              $      1,941         
 Preferred stock dividends and discount accretion          (131   )                 (285   )                  (163   )      
 Net income available to common shareholders         $     1,824              $     1,605              $      1,778         
 Basic earnings per common share                     $     0.54               $     0.48               $      0.53          
 Diluted earnings per common share                   $     0.54               $     0.48               $      0.53          
                                                                                                                            


                                                     Twelve Months Ended                                     
                                                     December 31,                                            
                                                     2012                            2011                    
                                                     (In thousands, except per share data)                   
 Interest income                                     $       32,826                  $       34,241          
 Interest expense                                            4,030                           5,968           
 Net interest income                                         28,796                          28,273          
 Provision for loan losses                                   4,101                           4,390           
 Non-interest income                                         8,424                           8,481           
 Non-interest expense                                        23,749                          22,863          
 Income before income taxes                                  9,370                           9,501           
 Income tax expense                                          1,685                           2,091           
 Net income                                          $       7,685                   $       7,410           
 Preferred stock dividends and discount accretion            (764    )                       (1,379  )       
 Net income available to common shareholders         $       6,921                   $       6,031           
 Basic earnings per common share                     $       2.06                    $       1.82            
 Diluted earnings per common share                   $       2.06                    $       1.79            
                                                                                                             


Credit quality metrics are as follows (in thousands):

                                                         As of                                                                            
                                                         December 31, 2012          September 30, 2012            December 31, 2011       
                                                                                                                                          
 Loans on non-accrual status                             $       8,718              $        15,509               $       15,772          
 Loans past due 90 days or more and still accruing               -                           -                            -               
 Foreclosed and repossessed assets                               6,345                       11,055                       5,076           
 Total non-performing assets                             $       15,063             $        26,564            $          20,848          
                                                                                                                             
 Non-performing assets to total assets                           1.84    %                   3.27     %           2.61    %       
 Allowance for Loan Losses to Total Loans                        1.88                        1.75                         2.05            
                                                                                                                                          


The Company`s unaudited condensed consolidated balance sheets are as follows:

                                                                  December 31,           December 31,      
                                                                  2012                   2011              
                                                                  (In thousands)                           
 ASSETS                                                                                                    
 Cash and due from financial institutions                         $        18,247        $        15,166   
 Interest-bearing deposits in other financial institutions                 32,305                 30,297   
 Securities available for sale                                             251,721                198,746  
 Loans held for sale                                                       1,388                  1,154    
 Loans, net of allowance for loan losses of $8,762 and $10,234             456,940                489,740  
 Federal Home Loan Bank and Federal Reserve stock                          5,998                  5,952    
 Accrued interest receivable                                               3,014                  3,196    
 Premises and equipment, net                                               14,094                 13,780   
 Cash surrender value of life insurance                                    20,709                 20,012   
 Other intangible assets                                                   638                    865      
 Foreclosed and repossessed assets                                         6,345                  5,076    
 Other assets                                                              8,101                  8,687    
 Total Assets                                                     $        819,500       $        792,671  
                                                                                                           
 LIABILITIES AND SHAREHOLDERS` EQUITY                                                                      
 Deposits                                                                                                  
 Non interest-bearing                                             $        169,411       $        127,877  
 Interest-bearing                                                          455,256                453,481  
 Total deposits                                                            624,667                581,358  
 Other borrowings                                                          45,501                 50,879   
 Federal Home Loan Bank advances                                           40,000                 55,000   
 Subordinated debentures                                                   17,000                 17,000   
 Accrued interest payable                                                  177                    329      
 Other liabilities                                                         5,713                  8,510    
 Total liabilities                                                         733,058                713,076  
                                                                                                           
 STOCKHOLDERS` EQUITY                                                                                      
 Total stockholders` equity                                                86,442                 79,595   
 Total Liabilities and Stockholders` Equity                       $        819,500       $        792,671  
                                                                                                           


About Community Bank Shares of Indiana, Inc.

Community Bank Shares of Indiana, Inc. was formed in 1991 as the nation`s first
ever mutual holding company.In 1995 the company went public under the NASDAQ
symbol CBIN.Today, Community Bank Shares of Indiana ,Inc. is Southeastern
Indiana`s largest locally owned and headquartered bank holding company and
includes Your Community Bank and The Scott County State Bank.The mission
statement of Community Bank Shares of Indiana reflects its purpose: "Achieving
financial goals through exceptional people and exceptional service." Community
Bank Shares of Indiana strives to help shareholders, customers, employees, and
our communities achieve their respective financial goals by empowering talented
individuals to provide a level of unmatched customer service.To learn more about
us, please visit www.yourcommunitybank.com and www.scottcountystatebank.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 2011
Form 10-K and subsequent 10-Qs filed with the Securities and Exchange
Commission.

Community Bank Shares of Indiana, Inc.
Paul Chrisco, CFO, 812-981-7375 

Copyright Business Wire 2013