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Community Bank Shares of Indiana, Inc. Reports 3rd Quarter Net Income Available to Common Shareholders of $1.3 Million, 4th Qua

^{Published on 2011-10-20 15:21:06 - Market Wire}
 

NEW ALBANY, Ind.--([ BUSINESS WIRE ])--Community Bank Shares of Indiana, Inc. (NASDAQ: CBIN)reported third quarter net income available to common shareholders of $1.3 million and earnings per diluted common share of $0.38. Net income before preferred stock dividends and accretion increased to $1.9 million during the third quarter, a $200,000 or 12% increase over the third quarter of 2010 and a $22,000 or 1% increase over the second quarter of 2011. The Company also announced that on October 18^th its board of directors declared a quarterly cash dividend on the Companya™s common stock of $0.10 per share payable on November 29, 2011 to shareholders of record on November 8, 2011.

"Achieving financial goals through exceptional people and exceptional service."

On September 15, 2011, the Company repurchased $19,468,000 in preferred shares issued in May 2009 under the United States Treasurya™s (aTreasurya) Capital Purchase Program (aCPPa). As a result the Company recognized $262,000 in preferred dividends and the remaining $299,000 of unaccreted discount on preferred stock. The repurchase of preferred shares was directly related to the Companya™s issuance of $28.0 million in preferred shares in connection with the Treasurya™s Small Business Lending Fund (SBLF) program on September 15, 2011. Also, on October 19, 2011 the Company repurchased for $1.1 million a warrant issued under the CPP to the Treasury for the purchase of 386,270 shares of the Companya™s common stock at an exercise price of $7.56 per share.

James Rickard, President and Chief Executive Officer, commented, aOur Company is proud to have been selected to participate in the fund established to serve small businesses and entrepreneurs, who are the primary drivers of job growth in the American economy. We will continue to focus on serving individuals, small businesses, and non-profits with great passion and energy. A significant driver of growth in our core customer base has been referrals from existing customers. We thank our customers for believing in us and for sharing their customer service experiences with others in the local community.a

Rickard continued, aDeploying new capital into our local community through new lending is the best way for our Company to help our local economies grow. This will also help increase the value of our Company by helping to increase our net interest margin and net income to shareholders. Our teams at Your Community Bank and The Scott County State Bank are focused and are actively prospecting in the markets we serve for lending opportunities. We are committed to helping our local market areas grow.a

The following points summarize significant financial information for the third quarter of 2011:

• Net income available to common shareholders was $1.3 million.
• Tangible book value per common share of $14.33.
• Net interest margin, on a tax equivalent basis, of 4.06%, an increase from 3.76% compared to same period in 2010.
• Provision for loan losses was $971,000 an increase of $366,000 from the same quarter in 2010 and an increase of $60,000 from the quarter ended June 30, 2011.
• Non-performing assets decreased to $29.8 million at September 30, 2011 from $30.7 million at June 30, 2011 due to a decrease in the Companya™s non-accrual loans and foreclosed and repossessed assets.
• Gains of $552,000 were realized on the sale of available for sale securities in the third quarter of 2011, an increase of $83,000 from the second quarter of 2011 and up $355,000 from the same period in 2010.

The following points summarize significant financial information for the first nine months of 2011:

• Net income available to common shareholders was $4.4 million, or $1.29 per diluted common share compared to $4.5 million and $1.35 for the first nine months of 2010.
• Net interest margin, on a tax equivalent basis, of 4.04%, an increase from 4.00% in the same period in 2010.
• Provision for loan losses of $2.7 million, a decrease of $216,000 from the same period in 2010.

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

The Companya™s unaudited condensed consolidated balance sheets are as follows:

About Community Bank Shares of Indiana, Inc.
Community Bank Shares of Indiana, Inc. was formed in 1991 as the nationa™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 Indianaa™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: aAchieving financial goals through exceptional people and exceptional service.a 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 Companya™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 Companya™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 Companya™s 2010 Form 10-K and subsequent 10-Qs filed with the Securities and Exchange Commission.