Your Community Bankshares, Inc. Reports 3rd Quarter Net Income Available to Common Shareholders of $3.8 Million, or $0.70 Per Diluted Common Share

NEW ALBANY, Ind.--()--Your Community Bankshares, Inc. (NASDAQ: YCB) reported third quarter net income available to common shareholders of $3.8 million and earnings per diluted common share of $0.70, compared to $2.2 million, or $0.63 per diluted common share, for the same period in 2014. Excluding merger and integration expenses resulting from the acquisition of First Financial Service Corporation of Elizabethtown, Kentucky (“FFKY”), the consolidation of the Company’s two subsidiary banks, and a non-taxable gain on recognition of life insurance benefit of $835,000, net income available to common shareholders for the quarter would have been $3.9 million or $0.71 per diluted common share (see “Regulation G Disclosure” below).

“We were very pleased with third quarter earnings,” stated James Rickard, President and Chief Executive Officer. “We recognized some non-recurring items that materially impacted the income statement in the third quarter, but achieve quarterly record earnings after factoring out those items. We also realized a significant improvement in our credit quality ratios during the quarter. We are in the process of finalizing a bulk loan sale that will eliminate a substantial portion of our non-performing assets from the balance sheet.”

Mr. Rickard continued, “While we took a sizable charge related to the closing of one of our underperforming branches, the cost savings going forward are very meaningful to the bottom line. We expect to save about $0.045 per share per year starting around March 1, 2016. While not as significant, we have some other cost savings initiatives that will benefit our results starting late in the fourth quarter of 2015. One involves closing a drive through facility which has seen declining transactions, and the other is converting an underperforming branch to a drive through only location.”

The following points summarize significant financial information for the third quarter of 2015:

  • Net income for the third quarter of 2015 was $3.9 million while net income available to common shareholders was $3.8 million. Excluding merger and integration expenses of $1.4 million ($913,000, net of tax) and non-taxable gain on recognition of life insurance benefit of $835,000, net income would have been $4.0 million (see “Regulation G Disclosure” below).
  • Non-performing assets to total assets declined to 0.86% at September 30, 2015 from 1.31% at June 30, 2015. Non-accrual loans declined from $12.2 million at June 30, 2015 to $4.5 million at September 30, 2015. Foreclosed and repossessed assets increased from $8.4 million to $9.0 million over the same period.
  • The decrease in non-performing assets and non-accrual loans was due to the reclassification of loans with a carrying value of $20.7 million to loans held for sale. The Company is currently in negotiations to sell these loans to third party purchasers, with the sale expected to be completed sometime during the fourth quarter of 2015. Of the total loans reclassified to loans held for sale, $5.0 million were non-accrual and were excluded from the Company’s credit quality metrics.
  • Tangible book value per common share was $21.33 as of September 30, 2015 as compared to $20.55 at 12/31/2014 and $19.66 at September 30, 2014.
  • The Company is closing its financial center located at 12629 Taylorsville Road, Louisville, KY 40299 sometime during the middle of the first quarter of 2016. The Company leases the land and owns the building and incurred approximately $99,000 in non-interest expense related to the operations of this location during third quarter of 2015. The Company entered into a sublease with a third party and took a charge of $972,000 related to the transaction. Consequently, the Company expects to recognize approximately $400,000 in annual pre-tax cost savings starting on March 1, 2015.
  • The Company will close its drive through located at 401 E. Spring Street, New Albany, IN 47150 on November 20, 2015, which will allow the Company to avoid approximately $60,000 in non-interest expense per year starting on the closing date. The Company recognized approximately $15,500 of expense for this facility during the third quarter of 2015.
  • The Company will close the lobby of its location located at 1671 N. Wilson Road, Radcliff, KY 40160 effective November 20, 2015. The Company will continue to operate a drive through and an ATM at this location. The Company recognized approximately $50,000 of expense for this facility during the third quarter of 2015, of which about $17,000 would have been avoided if the facility had been operated as drive through only. Consequently, the Company expects to avoid approximately $70,000 in non-interest expense per year starting on the closing date.
  • Net interest income declined to $13.4 million from $13.9 million in the second quarter of 2015 due primarily to the recognition of $300,000 in interest income from a loan reclassified from non-accretable yield to accretable in the second quarter of 2015. The loan was acquired in the acquisition of First Federal Savings Bank of Lexington, Kentucky in April 2013. Net interest income was also impacted by higher costs on other borrowings.
  • Fully tax equivalent net interest margin was 3.94%, a decline from 4.04% for the second quarter of 2015. The decrease in the margin was attributable to the same factors that drove the decrease in net interest income.
  • The Company recorded no provision for loan losses during the quarter, a decrease from $166,000 for the same quarter in 2014 and $2.2 million for the second quarter of 2016, primarily because of generally improving credit quality metrics and lower net charge-offs.
  • Non-interest income increased to $3.5 million compared to $2.7 million for the second quarter of 2015. The increase was mostly attributable to a gain on recognition of life insurance benefit of $835,000. Excluding the gain, non-interest income would have been $2.7 million or $22,000 more than the prior quarter.
  • Non-interest expense was $12.7 million as compared to $10.5 million for the second quarter of 2015. The increase was due to merger and integration expenses in the third quarter of $1.4 million compared to $156,000 in the second quarter. Excluding the merger and integration expenses of $1.4 million non-interest expense would have been $11.2 million. The increase in core non-interest expenses from the second quarter is largely attributable to higher incentive and stock compensation in the third quarter. The $972,000 in occupancy-related merger and integration expenses for the third quarter of 2015 were completely caused by the prospective closure of the branch located at 12629 Taylorsville Road, Louisville, KY 40299, which the Company acquired through it merger with First Financial Service Corporation (FFKY) of Elizabethtown. Of the $413,000 in data processing-related merger and integration expense, about 36% was related to the merger and data integration of the Company’s wholly-owned subsidiary Scott County State Bank into Your Community Bank. The remaining data processing merger and integration expenses were associated with the acquisition of FFKY; the Company does not expect to incur any additional FFKY-related data processing merger and integration expenses.
  • The Company’s effective tax rate was 7.86% during the quarter due to the gain on recognition of life insurance benefit of $835,000, which is non-taxable.
  • Beginning March 31, 2015, the Company and its subsidiaries were subject to the new Basel III capital standards and met the definition of well-capitalized under the revised rules as of September 30, 2015.
  • Selected performance ratios for the company are set out in the following table.
 
    Three Months Ended   Nine Months Ended
September   June   March   December   September September   September
30, 30, 31, 31, 30, 30, 31,
2015 2015 2015 2014 2014 2015 2014
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
 
Return on average assets 0.99 % 0.89 % (0.23 )% 1.11 % 1.07 % 0.55 % 1.02 %
Return on average assets, excluding merger and integration expenses, net of income taxes, and gain on life insurance benefit 1.22 % 0.92 % 0.37 % 1.17 % 1.12 % 0.76 % 1.07 %
Return on average equity 10.44 % 9.75 % (2.57 )% 9.83 % 9.59 % 5.93 % 9.44 %
Return on average equity, excluding merger and integration expenses, net of income taxes 10.65 % 10.02 % 4.16 % 10.46 % 10.11 % 8.31 % 9.88 %
Net interest margin, fully tax equivalent 3.94 % 4.04 % 3.87 % 4.52 % 4.28 % 3.95 % 4.22 %
Efficiency ratio (1) 64.56 % 58.85 % 82.07 % 57.15 % 66.15 % 68.31 % 65.06 %
 

(1) Net interest income on a fully taxable equivalent basis. Excludes gains or losses on sales of securities, foreclosed asset expenses, amortization of intangibles, and merger and integration expenses.

 
 
 
 

Your Community Bankshares, Inc.
Consolidated Balance Sheets

 

 

    September 30,

2015

  June 30,

2015 (1)

  March 31,

2015 (1)

  December 31,

2014

  September 30,

2014

(Unaudited) (Unaudited) (Unaudited) (Unaudited)
(As Recast) (As Recast)
(In thousands)
ASSETS
Cash and due from financial institutions $ 29,618 $ 28,947 $ 45,784 $ 12,872 $ 14,540
Interest-bearing deposits in other financial institutions 10,814 32,383 56,290 6,808 5,655
Securities available for sale 403,486 398,292 385,498 202,177 202,174
Loans held for sale 20,896 390 221 - -
Loans 992,622 1,010,001 1,006,693 603,575 593,124
Allowance for loan losses (6,416 ) (8,045 ) (7,120 ) (6,465 ) (7,784 )
Federal Home Loan Bank and Federal Reserve stock 3,891 3,807 5,451 4,964 5,964
Accrued interest receivable 5,151 5,083 4,802 3,152 3,028
Premises and equipment, net 30,314 31,462 31,793 18,124 17,986
Premises and equipment held for sale 3,898 5,954 5,974 - -
Company owned life insurance 32,828 33,348 33,095 22,058 21,887
Goodwill 4,115 4,115 4,115 - -
Core deposit intangible 5,321 5,634 5,951 682 759
Foreclosed and repossessed assets 9,028 8,337 15,927 4,431 4,677
Other assets   27,121     29,357     27,881     16,368     3,945  
Total Assets $ 1,572,687   $ 1,589,065   $ 1,622,355   $ 888,746   $ 865,955  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non-interest bearing $ 275,350 $ 293,179 $ 285,634 $ 200,142 $ 187,592
Interest-bearing   968,620     1,014,357     1,052,089     450,802     467,619  
Total deposits 1,243,970 1,307,536 1,337,723 650,944 655,211
Short-term borrowings 74,034 42,989 39,228 45,818 37,070
Subscription agreement proceeds in escrow - - - 20,774 -
Other borrowings 93,974 84,737 85,611 67,000 72,000
Accrued interest payable 375 703 462 158 87
Other liabilities   8,832     8,741     14,059     4,504     5,099  
Total liabilities 1,421,185 1,444,706 1,477,083 789,198 769,467
 
SHAREHOLDERS’ EQUITY
Preferred stock 28,000 28,000 28,000 28,000 28,000
Common stock 578 578 578 386 386
Additional paid-in capital 90,459 89,791 89,342 44,421 44,085
Retained earnings 36,336 32,228 30,419 32,110 30,196
Accumulated other comprehensive income 2,489 150 3,788 1,809 1,035
Treasury stock   (6,360 )   (6,388 )   (6,855 )   (7,178 )   (7,214 )
Total shareholders’ equity   151,502     144,359     145,272     99,548     96,488  
Total Liabilities and Shareholders’ Equity $ 1,572,687   $ 1,589,065   $ 1,622,355   $ 888,746   $ 865,955  
 
Book value per common share $ 22.84   $ 21.53   $ 21.81   $ 20.75   $ 19.88  
Tangible book value per common share $ 21.10   $ 19.31   $ 19.51   $ 20.55   $ 19.66  
 

(1) Management obtained information subsequent to the issuance of the June 30, 2015 and March 31, 2015 financial statements about the fair value of assets acquired and liabilities assumed from First Financial Service Corporation which resulted in an adjustment to the initial fair values established. The table below details the adjustments to the June 30, 2015 and March 31, 2015 consolidated balance sheet; there were no adjustments to the consolidated statement of operations for the periods ending June 30, 2015 and March 31, 2015.

 
 
      June 30, 2015     March 31, 2015

As Previously

Reported

   

Recast

Adjustments

   

As Recast

As Previously

Reported

   

Recast

Adjustments

   

As Recast

(In thousands)
Loans $ 1,005,016 $ 4,985 $ 1,010,001 $ 999,906 $ 6,787 $ 1,006,693
Premises and equipment held for sale 5,635 319 5,954 6,155 (181) 5,974
Foreclosed and repossessed assets 8,354 (17) 8,337 15,818 109 15,927
Other assets (deferred tax asset) 30,647 (1,290) 29,357 29,430 (1,549) 27,881
Goodwill 6,375 (2,260) 4,115 7,544 (3,429) 4,115
Other borrowings (subordinated debt) 83,000 1,737 84,737 83,874 1,737 85,611
 
 
 
 

Your Community Bankshares, Inc.
Consolidated Statements of Operations

 
      Three Months Ended     Nine Months Ended
September     June     March     December     September September     September
30, 30, 31, 31, 30, 30, 30,
2015 2015 2015 2014 2014 2015 2014
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
(In thousands except share and per data)
Interest and dividend income
Loans, including fees $ 12,361 $ 12,787 $ 12,523 $ 7,911 $ 7,317 $ 37,671 $ 21,039
Investment securities and other   2,334     2,319     2,233     1,322     1,313     6,886     4,002  
Interest and dividend income   14,695     15,106     14,756     9,233     8,630     44,557     25,041  
 
Interest expense
Deposits 570 580 574 245 255 1,724 775
Borrowed funds   731     612     698     291     201     2,041     630  
Total interest expense   1,301     1,192     1,272     536     456     3,765     1,405  
Net interest income 13,394 13,914 13,484 8,697 8,174 40,792 23,636
Provision for loan losses   -     2,155     106     637     166     2,261     638  
Net interest income after provision for loan losses   13,394     11,759     13,378     8,060     8,008     38,531     22,998  
 
Non-interest income
Service charges on deposit accounts 1,655 1,669 1,391 854 874 4,715 2,501
Interchange income 575 476 444 287 281 1,495 881
Earnings on company owned life insurance 226 253 252 170 169 731 501
Net gain (loss)on sales of available for sale securities (1 ) - 51 - 172 50 468
Mortgage banking income 70 74 117 42 40 261 84
Commission income 48 50 47 48 50 145 146
Gain on recognition of life insurance benefit 835 - - - - 835 -
Other income   101     130     110     128     113     341     335  
Non-interest income   3,509     2,652     2,412     1,529     1,699     8,573     4,916  
 
Non-interest expense
Salaries and employee benefits 5,619 5,086 9,119 3,276 3,869 19,824 10,602
Occupancy & equipment 2,640 1,672 2,208 966 971 6,520 2,848
Data processing 1,567 921 1,814 670 618 4,302 1,947
Core deposit intangible amortization 312 318 397 78 80 1,027 245
Foreclosed assets, net 119 (95 ) 344 118 (148 ) 368 43
Other expense   2,395     2,573     4,042     1,444     1,467     9,010     4,252  
Total non-interest expense   12,652     10,475     17,924     6,552     6,857     41,051     19,937  

Income (loss) before income taxes

4,251 3,936 (2,134 ) 3,037 2,850 6,053 7,977
Income tax expense (benefit)   334     371     (1,198 )   600     534     (493 )   1,401  
Net income (loss) 3,917 3,565 (936 ) 2,437 2,316 6,546 6,576
 
Preferred stock dividend   (110 )   (109 )   (110 )   (110 )   (110 )   (329 )   (329 )
Net income (loss) available (attributable) to common shareholders $ 3,807   $ 3,456   $ (1,046 ) $ 2,327   $ 2,206   $ 6,217   $ 6,247  
 
Earnings (loss) per basic share $ 0.70 $ 0.64 $ (0.19 ) $ 0.68 $ 0.64 $ 1.15 $ 1.82
Earnings (loss) per diluted share $ 0.70 $ 0.64 $ (0.19 ) $ 0.66 $ 0.63 $ 1.14 $ 1.80
Dividend per common share $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.36 $ 0.36
Average number of basic shares 5,405,691 5,383,887 5,374,819 3,446,486 3,443,787 5,388,245 3,434,660
Average number of dilutive shares 5,470,557 5,437,602 5,374,819 3,499,951 3,480,816 5,457,205 3,472,792
 
Merger and integration expenses contained in:
Salaries and employee benefits - 60 2,105 - - 2,165 -
Occupancy & equipment 972 - 310 - - 1,282 -
Data processing 413 27 719 - - 1,159 -
Other expense   20     69     633     238     190     722     459  
Total merger and integration expenses 1,405 156 3,767 238 190 5,328 459
Total merger and integration expenses, net of income taxes 913 101 2,486 157 125 3,463 302
 
 
 
 

Your Community Bankshares, Inc.
Average Balances, Interest Yields and Costs

 
     

Three Months Ending,

9/30/2015

   

6/30/2015

   

03/31/2015

   

12/31/2014

   

09/30/2014

Average

Balance

   

Average

Yield/

Cost

Average

Balance

   

Average

Yield/

Cost

Average

Balance

   

Average

Yield/

Cost

 

Average

Balance

   

Average

Yield/

Cost

 

Average

Balance

   

Average

Yield/

Cost

ASSETS (In thousands)
Earning assets:
Interest-bearing deposits with banks $ 17,489 0.73 % $ 48,008 0.41 % $ 63,092 0.36 % $ 6,113 0.39 % $ 14,424 0.51 %
Taxable securities 283,885 1.78 288,420 1.84 318,695 1.71 117,961 1.78 109,297 1.76
Tax-exempt securities 112,408 5.35 98,423 5.52 83,217 5.57 80,416 5.49 80,809 5.50
Total loans and fees 1,001,041 4.96 1,000,865 5.17 993,536 5.15 595,578 5.34 592,327 4.97
FHLB and Federal Reserve stock   3,837   4.65   4,860   5.69   6,484   5.94   5,768   3.71   5,964   4.78
Total earning assets 1,418,660 4.30 1,440,576 4.37 1,465,024 4.22 805,836 4.78 802,621 4.50
Less: Allowance for loan losses (7,757 ) (7,532 ) (6,838 ) (7,743 ) (8,505 )
Non-earning assets:
Cash and due from banks 32,263 35,902 38,987 22,388 16,032
Bank premises and equipment, net 36,869 37,778 38,135 17,959 18,143
Other assets   92,150     96,967     124,855     40,034     38,889  
Total assets $ 1,572,185   $ 1,603,691   $ 1,660,163   $ 878,474   $ 867,180  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
Interest-bearing liabilities:
Savings and other $ 652,860 0.15 % $ 688,831 0.15 % $ 697,094 0.15 % $ 338,104 0.18 % $ 338,092 0.18 %
Time deposits 339,480 0.37 352,394 0.36 377,230 0.33 133,684 0.28 138,573 0.28
Short-term borrowings 50,067 0.32 39,033 0.24 38,253 0.23 42,819 0.24 35,879 0.21
Other borrowings   86,752   3.16   83,170   2.84   87,999   3.12   71,837   1.46 57,707 1.25
Total interest-bearing liabilities 1,129,159 0.46 1,163,428 0.41 1,200,576 0.43 586,444 0.36 570,251 0.32
 
Non-interest bearing liabilities:
Non-interest demand deposits 285,743 283,101 279,879 185,844 195,011
Accrued interest payable and other liabilities 8,478 10,453 32,251 7,800 6,127
Shareholders’ equity   148,805     146,709     147,457     98,386   95,791
Total liabilities and shareholders’ equity $ 1,572,185   $ 1,603,691   $ 1,660,163   $ 878,474   $ 867,180
 
Net interest spread 3.84 % 3.96 % 3.79 % 4.42 % 4.18 %
Net interest margin 3.94 4.04 3.87 4.52 4.28
 
 

Accretion and Amortization of Fair Value Adjustments

 
     

Three Months Ending,

9/30/2015

   

6/30/2015

   

03/31/2015

   

12/31/2014

   

09/30/2014

Fair Value

Accretion

   

Impact on

Net

Interest

Margin

Fair Value

Accretion

   

Impact on

Net

Interest

Margin

Fair Value

Accretion

   

Impact on

Net

Interest

Margin

Fair Value

Accretion

   

Impact on

Net

Interest

Margin

Fair Value

Accretion

   

Impact on

Net

Interest

Margin

(In thousands)
Loans $ 648 0.18 % $ 1,016 0.28 % $ 601 0.17 % $ 775 0.38 % $ 126 0.06 %
Interest-bearing deposits 432 0.12 475 0.13 542 0.15 - 0.00 - 0.00
FHLB advances 63 0.02 62 0.02 62 0.02 - 0.00 - 0.00
Subordinated debentures   40 0.01   36 0.01   33 0.01   - 0.00   - 0.00
Total fair value accretion $ 1,183 0.33 % $ 1,589 0.44 % $ 1,238 0.34 % $ 775 0.38 % $ 126 0.06 %
 
 
 
 

Your Community Bankshares, Inc.
Selected Loan Information

 

 

    September 30,

2015

  June 30,

2015 (1)

  March 31,

2015 (1)

  December 31,

2014

  September 30,

2014

(Unaudited) (Unaudited) (Unaudited) (Unaudited)
(As recast) (As recast)
ACQUIRED LOANS (In thousands)
Loans on non-accrual status $ 2,257 $ 6,168 $ 10,368 $ 96 $ 178
Loans past due 90 days or more and still accruing - - - - -
Foreclosed and repossessed assets   5,790     4,849     12,409     254     126  
Total non-performing assets 8,047 11,017 22,777 350 304
 
Non-accretable yield on acquired loans 10,949 16,246 16,752 571 849
 
LEGACY LOANS
Loans on non-accrual status 2,229 6,016 7,354 7,439 9,031
Loans past due 90 days or more and still accruing - 220 803 - 55
Foreclosed and repossessed assets   3,238     3,505     3,535     4,177     4,551  
Total non-performing assets 5,467 9,741 11,692 11,616 13,637
 
Total Legacy Loans 667,281 625,624 588,076 570,864 556,525
Allowance for loan losses 6,416 8,045 7,120 6,465 7,784
 
Allowance for loan losses to legacy loans 0.96 % 1.29 % 1.21 % 1.13 % 1.40 %
 
TOTAL LOANS
Loans on non-accrual status $ 4,486 $ 12,184 $ 17,722 $ 7,535 $ 9,209
Loans past due 90 days or more and still accruing - 220 803 - 55
Foreclosed and repossessed assets   9,028     8,354     15,944     4,431     4,677  
Total non-performing assets 13,514 20,759 34,469 11,966 13,941
 
Non-performing assets to total assets 0.86 % 1.31 % 2.13 % 1.35 % 1.61 %
Allowance for loan losses to total loans 0.65 % 0.79 % 0.70 % 1.06 % 1.30 %
 

(1) Management obtained information subsequent to the issuance of the June 30, 2015 and March 31, 2015 financial statements about the fair value of assets acquired from First Financial Service Corporation which resulted in an adjustment to the initial fair values established. The adjustments are reflected in the selected loan information reported as June 30, 2015 and March 31, 2015 above.

 
 

Reconciliation of Fully Tax Equivalent Adjustments to GAAP Net Interest Income

 
     

9/30/2015

   

6/30/2015

   

3/31/2015

   

12/31/2014

   

9/30/2014

Net

Interest

Income

   

Yield

Net

Interest

Income

   

Yield

Net

Interest

Income

   

Yield

Net

Interest

Income

   

Yield

Net

Interest

Income

   

Yield

(In thousands)
GAAP net interest income $ 13,394 3.75% $ 13,914 3.87% $ 13,484 3.73% $ 8,697 4.28% $ 8,174 4.04%
 
Tax equivalent adjustment
Investment securities 530 0.15 474 0.14 400 0.11 379 0.19 381 0.19
Loans 154 0.04 115 0.03 102 0.03 100 0.05 100 0.05
Total tax equivalent adjustment 684 0.19 589 0.17 502 0.14 479 0.24 481 0.24
 
Tax equivalent net interest income 14,078 3.94% 14,503 4.04% 13,986 3.87% 9,176 4.52% 8,655 4.28%
 
 
 
 

Regulation G Disclosure

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission (the “SEC”). The Company believes that these non-GAAP financial measures provide information that is useful to the users of its financial information regarding the Company’s financial condition and results of operations. Additionally, the Company uses these non-GAAP measures to evaluate its past performance and prospects for future performance. The Company believes that this non-GAAP financial information is helpful in understanding the results of operations separate and apart from items that may, or could, have a disproportional positive or negative impact in any particular period.

While the Company believes that these non-GAAP financial measures are useful in evaluating Company performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with U.S. GAAP. Further, these non-GAAP financial measures may differ from similar measures presented by other companies.

The Company recognized expenses associated with its acquisition of First Financial Service Corporation during the three months ended September 30, 2015 which substantially impacts the reported financial results for those periods. The Company believes excluding the charge provides investors and other interested parties with an additional meaningful measure to evaluate the Company’s results of operations.

 
 

Net income available to common shareholders reconciliation:

     

Three Months Ended

September 30, 2015

   

Earnings per diluted

common share impact

(In thousands)
Net income available to common shareholders as reported $ 3,807 $ 0.70
Less: Merger and integration expenses reported in non-interest expense 1,405 0.26
Less: Tax effect of merger and integration charges   (492 )   (0.09 )
Net income available to common shareholders excluding merger and integration expense and related tax effect $ 4,720   $ 0.86  
Less: Non-taxable gain on recognition of life insurance benefit   835   0.15
Net income available to common shareholders excluding merger and integration expense and related tax effect and non-taxable gain on life insurance benefit $ 3,885   $ 0.71  
 
 

Net income reconciliation:

Net income as reported $ 3,917
Less: Merger and integration expenses reported in non-interest expense 1,405
Less: Tax effect of merger and integration charges   (492 )
Net income excluding merger and integration expense and related tax effect $ 4,830  
Less: Non-taxable gain on recognition of life insurance benefit   835  
Net income available to common shareholders excluding merger and integration expense and related tax effect and non-taxable gain on life insurance benefit $ 3,995  
 
 

Non-interest income reconciliation:

Non-interest income as reported $ 3,509
Less: Merger and integration charges   835  
Non-interest income excluding non-taxable gain on life insurance benefit $ 2,674  
 
 

Non-interest expense reconciliation:

Non-interest expense as reported $ 12,652
Less: Merger and integration charges   1,405  
Non-interest expense excluding merger and integration expense $ 11,247  
 
 
 

About Your Community Bankshares, Inc.

Your Community Bankshares, Inc. is a bank holding company headquartered in New Albany, Indiana and includes its wholly owned, state-chartered subsidiary bank, Your Community Bank. The Company operates 36 financial centers in Indiana and Kentucky. The Banks are engaged primarily in the business of attracting deposits from the general public and using such funds for the origination of commercial business and real estate loans and secured consumer loans such as home equity lines of credit, automobile loans, and recreational vehicle loans. Additionally, the Banks originate and sell into the secondary market mortgage loans for the purchase of single-family homes. For more information visit www.yourcommunitybank.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 2014 Form 10-K and subsequent 10-Q filed with the Securities and Exchange Commission.

Contacts

Your Community Bankshares, Inc.
Paul Chrisco, CFO, 812-981-7375

Release Summary

Your Community Bankshares, Inc. (YCB) reports 3rd quarter net income available to common shareholders of $3.8 million, or $0.70 per diluted common share

Contacts

Your Community Bankshares, Inc.
Paul Chrisco, CFO, 812-981-7375