CIBN Community Investors Bancorp Inc (PK)

BUCYRUS, Ohio, July 20, 2012 /PRNewswire/ -- Community Investors Bancorp, Inc. (OTC Other: CIBN), parent company of First Federal Community Bank of Bucyrus, reported net earnings of $429,000, or $.49 per basic share, for the year ended June 30, 2012, representing an increase of $79,000, (22.6%), compared to the net earnings of $350,000, or $.40 per basic share, reported for the year ended June 30, 2011.  The increase in 2012 earnings reflects an increase in other income of $240,000 (21.2%). This was partially offset by a $29,000 (.7%), decrease in net interest income an increase in general administrative and other expenses of $96,000 (2.2%), and an increase of $2,000 (.4%) in provision for loan loss. The decrease in net interest income reflects the continuing struggle to manage interest rate margins in an historically low interest rate environment coupled with a lack of new loan demand. Other income increases resulted from our secondary mortgage market gains as well as a gain on investments. The provision for loan losses remains high and reflects continuing economic difficulties of some of our loan customers due to high unemployment in the local workforce as well as difficult business conditions.  The regulatory burden continues to increase. We incurred additional professional expenses related to technology upgrades and the termination of our employee stock ownership plan (ESOP). The expenses related to bank-owned properties remain elevated as well. But through the teamwork and cooperation of our employees, we limited our general, administrative and other expenses to a 2.2% increase.  

Community Investors Bancorp, Inc. reported total assets at June 30, 2012, of $130.5 million (increase of $2.4 million or 1.8% from 2011) including gross loans of $86.4 million (decrease of $5.4 million or 6.2% from 2011). Continuing weak loan demand in our markets has allowed us to restructure our balance sheet. We increased our investments by $12.6 million or 106.3%.  Deposits rose by $1.8 million or 1.8%. The result is that total liabilities were $117.3 million (increase of $2.4 million or 2.1% from 2011), including total deposits of $103.8 million. Total stockholders' equity decreased by $103,000 to $13.1 million as a result of the buyback of 87,419 shares as part of the termination of our ESOP. Our capital as a percentage of assets decreased from 10.34% to 10.08%.

Our goal is to build our capital through continued steady earnings while maintaining liquidity through diligent management of our balance sheet. We continue to prepare for the repurchase of our preferred shares held by the US Treasury, without reducing capital levels to unacceptable levels. This repurchase will allow us to improve our annual earnings available to common shareholders by $142,000 or $.18 per common share.  

SOURCE Community Investors Bancorp, Inc.