BUCYRUS, Ohio, Feb. 2 /PRNewswire-FirstCall/ -- Community Investors
Bancorp, Inc. (Pink Sheets: CIBN), parent company of First Federal Community
Bank of Bucyrus, reported net earnings of $126,000, or $.14 per basic share,
for the six months ended December 31, 2008, representing a decrease of
$243,000, or 65.9%, compared to the net earnings of $369,000, or $.42 per
basic share, reported for the six months ended December 31, 2007. The decrease
in 2008 earnings reflects a $256,000, or 12.4%, decrease in net interest
income coupled with an increase in provision for loan loss of $108,000. The
reduction in net interest income is a result of lower interest rates earned on
both our liquid funds and loans. Loan rates have adjusted more quickly than
our borrowing costs and rates paid on liquid funds have fallen to virtually
zero as the Federal Reserve has lowered interest rates to historically low
levels. As we reduce and re-price our fixed borrowings over the next 12 to 18
months, we expect to see significant reductions in our cost of funds. Prudent
banking in these times of economic distress requires us to bolster loan loss
reserves. Our Marysville banking center has now been open for more than a
year. This is reflected in slightly higher general, administrative and other
expenses. However, more than $5.5 million in deposits were added through our
Marysville operations as of December 31, 2008. We will continue to search for
new opportunities to serve our customers and shareholders, while also looking
for opportunities to increase efficiencies, by leveraging the capabilities of
our dedicated staff.
Community Investors Bancorp, Inc. reported total assets at December 31,
2008, of $142.9 million, total liabilities of $129.7 million, including total
deposits of $93.4 million and total stockholders' equity of $13.3 million. As
participants in the U.S. Treasury's Capital Purchase Program, Community
Investors Bancorp, Inc. has issued $2.6 million, in preferred stock to the
U.S. Treasury. This is additional capital available to support lending
activities as credit-worthy opportunities present themselves in these
difficult economic times. The reduction in FHLB advances reflects our strategy
to rely more on customer deposits for our funding while repaying borrowed
funds as much as possible based on our needs.
Community Investors Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
UNAUDITED
December 31, June 30,
ASSETS 2008 2008
Cash and cash equivalents $15,225 $13,890
FHLB overnight deposits 2,350 4,600
Investment securities 6,657 5,394
Mortgage-backed securities 3,630 4,509
Loans receivable 107,041 107,246
Interest receivable 824 840
Prepaid federal income tax 65 130
FHLB stock 2,237 2,207
Prepaid expenses 323 441
Fixed assets 4,286 4,343
Other assets 281 293
Total assets $142,919 $143,893
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 93,358 $ 93,142
Advances from the Federal Home Loan Bank 35,500 38,500
Interest payable 275 275
Other liabilities 459 1,095
Deferred federal income tax 65 96
Total liabilities 129,657 133,108
Shareholders' equity 13,262 10,785
Total liabilities and shareholders' equity $142,919 $143,893
Community Investors Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
UNAUDITED
Six months ended Three months ended
December 31, December 31,
2008 2007 2008 2007
Total interest income $4,075 $4,582 $1,998 $2,342
Total interest expense 2,269 2,520 1,104 1,303
Net interest income 1,806 2,062 894 1,039
Provision for losses on
loans 183 75 124 50
Net interest income after
provision for losses on
loans 1,623 1,987 770 989
Other income 280 265 148 138
General, administrative
and other expense 1,711 1,690 856 811
Earnings before income
taxes 192 562 62 316
Federal income taxes 66 193 21 109
NET EARNINGS $126 $369 $41 $207
EARNINGS PER SHARE
Basic $0.14 $0.42 $0.05 $0.24
Diluted $0.14 $0.42 $0.05 $0.24
SOURCE Community Investors Bancorp, Inc.