FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
--------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to _______________
Commission File No. 33-84132
COMMUNITY INVESTORS BANCORP, INC.
(Exact name of registrant as specified in its charter)
Ohio 34-1779309
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
119 South Sandusky Avenue
Bucyrus, Ohio 44820
(Address of principal (Zip Code)
executive office)
Issuers' telephone number, including area code: (419) 562-7055
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports) and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No
As of November 10, 1997, the latest practicable date, 902,371 shares of the
registrant's common stock, $.01 par value, were issued and outstanding.
Page 1 of 14 pages
<PAGE>
INDEX
Page
PART I - FINANCIAL INFORMATION
Consolidated Statements of Financial Condition 3
Consolidated Statements of Earnings 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 10
PART II - OTHER INFORMATION 13
SIGNATURES 14
2
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<TABLE>
<CAPTION>
Community Investors Bancorp, Inc.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
September 30, June 30,
<S> <C> <C>
ASSETS 1997 1997
Cash and due from banks ................................................................ $ 575 $ 480
Federal funds sold ..................................................................... 60 60
Interest-bearing deposits in other financial institutions .............................. 873 1,870
-------- -------
Cash and cash equivalents ..................................................... 1,508 2,410
Investment securities available for sale - at market ................................... 1,503 1,498
Investment securities - at amortized cost, approximate market value of
$8,521 and $8,216 as of September 30, 1997 and June 30, 1997 ........................ 8,567 8,258
Mortgage-backed securities - at amortized cost, approximate market value
of $1,654 and $1,714 as of September 30, 1997 and June 30, 1997 ...................... 1,672 1,732
Loans receivable - net ................................................................. 79,160 76,446
Property acquired in settlement of loans ............................................... 40 71
Office premises and equipment - at depreciated cost .................................... 615 618
Federal Home Loan Bank stock - at cost ................................................. 782 768
Accrued interest receivable on loans ................................................... 106 89
Accrued interest receivable on mortgage-backed securities .............................. 9 12
Accrued interest receivable on investments and interest-bearing deposits ............... 165 142
Prepaid expenses and other assets ...................................................... 87 146
Deferred federal income taxes .......................................................... 114 114
-------- --------
Total assets .................................................................. $94,328 $92,304
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits ............................................................................... $74,075 $72,911
Advances from the Federal Home Loan Bank ............................................... 8,539 7,810
Advances by borrowers for taxes and insurance .......................................... 13 7
Accrued interest payable ............................................................... 273 290
Other liabilities ...................................................................... 191 149
Accrued federal income taxes ........................................................... 152 24
-------- ---------
Total liabilities ............................................................. 83,243 81,191
Stockholders' equity
Preferred stock, 1,000,000 shares authorized, no par value; no shares issued ......... - -
Common stock, 4,000,000 shares authorized, $.01 par value; 1,107,171 shares issued ... 11 11
Additional paid-in capital ........................................................... 6,827 6,827
Retained earnings, restricted ........................................................ 7,299 7,142
Shares acquired by stock benefit plans ............................................... (890) (890)
Less 190,800 and 177,800 shares of treasury stock - at cost .......................... (2,156) (1,971)
Unrealized losses on securities designated as available for sale, net of
related tax effects ................................................................ (6) (6)
---------- ----------
Total stockholders' equity .................................................... 11,085 11,113
------ ------
Total liabilities and stockholders' equity .................................... $94,328 $92,304
====== ======
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Community Investors Bancorp, Inc.
CONSOLIDATED STATEMENTS OF EARNINGS
For the three month periods ended September 30,
(In thousands, except share data)
<S> <C> <C>
1997 1996
Interest income
Loans ................................................. $1,631 $1,429
Mortgage-backed securities ............................ 23 39
Investment securities ................................. 162 299
Interest-bearing deposits and other ................... 3 9
-------- --------
Total interest income .......................... 1,819 1,776
Interest expense
Deposits .............................................. 884 811
Borrowings ............................................ 122 163
------ ------
Total interest expense ......................... 1,006 974
----- ------
Net interest income ............................ 813 802
Provision for losses on loans ........................... 2 46
-------- -------
Net interest income after provision
for losses on loans .......................... 811 756
Other income
Gain on sale of other repossessed assets .............. 2 1
Other operating ....................................... 41 25
------- -------
Total other income ............................. 43 26
General, administrative and other expense
Employee compensation and benefits .................... 239 161
Occupancy and equipment ............................... 32 30
Federal deposit insurance premiums .................... 11 502
Franchise taxes ....................................... 39 33
Expenses of property acquired in settlement of loans .. 9 19
Data processing ....................................... 43 42
Other operating ....................................... 114 123
------ ------
Total general, administrative and other expense 487 910
------ ------
Earnings (loss) before income taxes (credits) .. 367 (128)
Federal income taxes (credits)
Current ............................................... 121 (16)
Deferred .............................................. 10 (9)
------- --------
Total federal income taxes (credits) ........... 131 (25)
------ -------
NET EARNINGS (LOSS) ............................ $ 236 $ (103)
====== ======
EARNINGS (LOSS) PER SHARE ...................... $.28 $(.17)
=== ====
</TABLE>
4
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<TABLE>
<CAPTION>
Community Investors Bancorp, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended September 30,
(In thousands)
<S> <C> <C>
1997 1996
Cash flows from operating activities:
Net earnings (loss) for the period ...................................... $ 236 $ (103)
Adjustments to reconcile net earnings (loss) to net cash
provided by (used in) operating activities:
Amortization of discounts and premiums on loans,
investments and mortgage-backed securities - net .................... (4) (5)
Amortization of deferred loan origination fees ........................ (48) (25)
Depreciation and amortization ......................................... 9 7
Provision for losses on loans ......................................... 2 46
Gain on sale of other repossessed assets .............................. (2) (1)
Federal Home Loan Bank stock dividends ................................ (14) -
Increase (decrease) in cash due to changes in:
Accrued interest receivable on loans ................................ (17) (14)
Accrued interest receivable on mortgage-backed securities ........... 3 2
Accrued interest receivable on investments and
interest-bearing deposits ......................................... (23) (124)
Prepaid expenses and other assets ................................... 59 49
Accrued interest payable ............................................ (17) 20
Other liabilities ................................................... 36 465
Federal income taxes
Current ........................................................... 124 (84)
Deferred .......................................................... 10 (9)
------- --------
Net cash provided by operating activities ........................ 354 224
Cash flows provided by (used in) investing activities:
Proceeds from maturity of investment securities ......................... 200 1,426
Purchase of investment securities designated as available for sale ...... - (1,030)
Purchase of investment securities designated as held to maturity ........ (500) (500)
Principal repayments on mortgage-backed securities ...................... 60 599
Loan principal repayments ............................................... 3,837 4,630
Loan disbursements ...................................................... (6,515) (7,999)
Purchase of office premises and equipment ............................... (6) (50)
Proceeds from sale of other repossessed assets .......................... 33 30
Purchase of Federal Home Loan Bank stock ................................ - (50)
----- -------
Net cash used in investing activities ............................ (2,891) (2,944)
----- -----
Net cash used in operating and investing
activities (subtotal carried forward) .......................... (2,537) (2,720)
----- -----
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Community Investors Bancorp, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
For the three months ended September 30,
(In thousands)
<S> <C> <C>
1997 1996
Net cash used in operating and investing activities
(subtotal brought forward) ................................... $(2,537) $(2,720)
Cash flows provided by (used in) financing activities:
Net increase in deposit accounts ...................................... 1,164 257
Proceeds from Federal Home Loan Bank advances ......................... 7,300 2,500
Repayment of Federal Home Loan Bank advances .......................... (6,571) (14)
Advances by borrowers for taxes and insurance ......................... 6 5
Purchase of treasury stock ............................................ (185) -
Dividends on common stock ............................................. (79) (64)
-------- --------
Net cash provided by financing activities ...................... 1,635 2,684
------ ------
Net decrease in cash and cash equivalents ............................... (902) (36)
Cash and cash equivalents at beginning of period ........................ 2,410 1,909
------ ------
Cash and cash equivalents at end of period .............................. $ 1,508 $ 1,873
====== ======
Supplemental disclosure of cash flow information: Cash paid during the period
for:
Federal income taxes .............................................. $ 15 $ 100
====== =======
Interest on deposits and borrowings ............................... $ 1,023 $ 954
====== =======
Supplemental disclosure of noncash investing activities:
Transfers from loans to other repossessed assets .................... $ - $ 62
====== ========
</TABLE>
6
<PAGE>
Community Investors Bancorp, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended September 30, 1997 and 1996
1. Basis of Presentation
The accompanying unaudited consolidated financial statements were prepared
in accordance with instructions for Form 10-QSB and, therefore, do not
include information or footnotes necessary for a complete presentation of
consolidated financial position, results of operations and cash flows in
conformity with generally accepted accounting principles. Accordingly, these
financial statements should be read in conjunction with the consolidated
financial statements and notes thereto of the Corporation included in the
Annual Report on Form 10-KSB for the year ended June 30, 1997. However, in
the opinion of management, all adjustments (consisting of only normal
recurring accruals) which are necessary for a fair presentation of the
financial statements have been included. The results of operations for the
three month periods ended September 30, 1997 and 1996 are not necessarily
indicative of the results which may be expected for an entire fiscal year.
2. Principles of Consolidation
The accompanying consolidated financial statements include the
accounts of Community Investors Bancorp, Inc. (the "Corporation") and First
Federal Savings and Loan Association of Bucyrus (the "Association"). All
significant intercompany items have been eliminated.
3. Earnings Per Share
Earnings per share is computed based upon the weighted-average shares
outstanding during the period plus those stock options that are dilutive,
less shares in the ESOP that are unallocated and not committed to be
released. Weighted-average common shares deemed outstanding, which gives
effect to 70,763 unallocated ESOP shares, totaled 847,440 for the three
month period ended September 30, 1997. Weighted-average common shares deemed
outstanding, which gives effect to 53,147 unallocated ESOP shares, totaled
613,099 for the three month period ended September 30, 1996. There is no
dilutive effect associated with the Corporation's stock option plan.
4. Effects of Recent Accounting Pronouncements
In June 1996, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 125, "Accounting
for Transfers of Financial Assets, Servicing Rights, and Extinguishment of
Liabilities", that provides accounting guidance on transfers of financial
assets, servicing of financial assets, and extinguishment of liabilities.
SFAS No. 125 introduces an approach to accounting for transfers of financial
assets that provides a means of dealing with more complex transactions in
which the seller disposes of only a partial interest in the assets, retains
rights or obligations, makes use of special purpose entities in the
transaction, or otherwise has continuing involvement with the transferred
assets. The new accounting method, the financial components approach,
provides that the carrying amount of the financial assets transferred be
allocated to components of the transaction based on their relative fair
values. SFAS No. 125 provides criteria for determining whether control of
assets has been relinquished and whether a sale has occurred. If the
transfer does not qualify as a sale, it is accounted for as a secured
borrowing. Transactions subject to the provisions of SFAS No. 125 include,
among others, transfers involving repurchase agreements, securitizations of
financial assets, loan participations, factoring arrangements, and transfers
of receivables with recourse.
7
<PAGE>
Community Investors Bancorp, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the three months ended September 30, 1997 and 1996
4. Effects of Recent Accounting Pronouncements (continued)
An entity that undertakes an obligation to service financial assets
recognizes either a servicing asset or liability for the servicing contract
(unless related to a securitization of assets, and all the securitized
assets are retained and classified as held-to-maturity). A servicing asset
or liability that is purchased or assumed is initially recognized at its
fair value. Servicing assets and liabilities are amortized in proportion to
and over the period of estimated net servicing income or net servicing loss
and are subject to subsequent assessments for impairment based on fair
value.
SFAS No. 125 provides that a liability is removed from the balance sheet
only if the debtor either pays the creditor and is relieved of its
obligation for the liability or is legally released from being the primary
obligor.
SFAS No. 125 is effective for transfers and servicing of financial assets
and extinguishment of liabilities occurring after December 31, 1997, and is
to be applied prospectively. Earlier or retroactive application is not
permitted. Management does not believe that adoption of SFAS No. 125 will
have a material adverse effect on the Corporation's consolidated financial
position or results of operations.
In February 1997, the FASB issued SFAS No. 128, "Earnings Per Share", which
requires companies to present basic earnings per share and, if applicable,
diluted earnings per share, instead of primary and fully diluted earnings
per share, respectively. Basic earnings per share is computed without
including potential common shares, i.e., no dilutive effect. Diluted
earnings per share is computed taking into consideration common shares
outstanding and dilutive potential common shares, including options,
warrants, convertible securities and contingent stock agreements. SFAS No.
128 is effective for periods ending after December 15, 1997. Early adoption
is not permitted. Based upon the provisions of SFAS No. 128, the
Corporation's basic and diluted earnings per share for the three month
period ended September 30, 1997 would have each been $.28. Basic and diluted
loss per share for the three month period ended September 30, 1996 would
have each been $.17.
In February 1997, the FASB issued SFAS No. 129, "Disclosures of Information
about Capital Structure." SFAS No. 129 consolidated existing accounting
guidance relating to disclosure about a company's capital structure. SFAS
No. 129 is effective for financial statements for periods ending after
December 15, 1997. SFAS No. 129 is not expected to have a material impact
on the Corporation's financial statements.
In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income." SFAS No. 130 establishes standards for reporting and display of
comprehensive income and its components (revenues, expenses, gains and
losses) in a full set of general-purpose financial statements. SFAS No. 130
requires that all items that are required to be recognized under accounting
standards as components of comprehensive income be reported in a financial
statement that is displayed with the same prominence as other financial
statements. It does not require a specific format for that financial
statement but requires that an enterprise display an amount representing
total comprehensive income for the period in that financial statement.
8
<PAGE>
Community Investors Bancorp, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the three months ended September 30, 1997 and 1996
4. Effects of Recent Accounting Pronouncements (continued)
SFAS No. 130 requires that an enterprise (a) classify items of other
comprehensive income by their nature in a financial statement and (b)
display the accumulated balance of other comprehensive income separately
from retained earnings and additional paid-in capital in the equity section
of a statement of financial position. SFAS No. 130 is effective for fiscal
years beginning after December 15, 1997. Reclassification of financial
statements for earlier periods provided for comparative purposes is
required. SFAS No. 130 is not expected to have a material impact on the
Corporation's financial statements.
In June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments of
an Enterprise and Related Information." SFAS No. 131 significantly changes
the way that public business enterprises report information about operating
segments in annual financial statements and requires that those enterprises
report selected information about reportable segments in interim financial
reports issued to shareholders. It also establishes standards for related
disclosures about products and services, geographic areas and major
customers. SFAS No. 131 uses a "management approach" to disclose financial
and descriptive information about the way that management organizes the
segments within the enterprise for making operating decisions and assessing
performance. For many enterprises, the management approach will likely
result in more segments being reported. In addition, SFAS No. 131 requires
significantly more information to be disclosed for each reportable segment
than is presently being reported in annual financial statements and also
requires that selected information be reported in interim financial
statements. SFAS No. 131 is effective for fiscal years beginning after
December 15, 1997. SFAS No. 131 is not expected to have a material impact on
the Corporation's financial statements.
9
<PAGE>
Community Investors Bancorp, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Forward-Looking Statements
In addition to historical information contained herein, the following discussion
contains forward-looking statements that involve risks and uncertainties.
Economic circumstances, the Corporation's operations and the Corporation's
actual results could differ significantly from those discussed in the
forward-looking statements. Some of the factors that could cause or contribute
to such differences are discussed herein but also include changes in the economy
and interest rates in the nation and the Corporation's market area generally.
Some of the forward-looking statements included herein are the statements
regarding management's determination of the amount and adequacy of the allowance
for losses on loans and the effect of certain accounting pronouncements.
Discussion of Financial Condition Changes from June 30, 1997 to September 30,
1997
At September 30, 1997, the Corporation's assets totaled $94.3 million, an
increase of $2.0 million, or 2.2%, over the $92.3 million of total assets at
June 30, 1997. The increase in assets was funded through growth in the deposit
portfolio of $1.2 million coupled with an increase in advances from the Federal
Home Loan Bank of $729,000.
Cash, interest-bearing deposits and investment securities decreased by $588,000
over the three month period, to a total of $11.6 million at September 30, 1997,
as investment securities purchases of $500,000 were offset by maturities of
$200,000 and a decline in cash and cash equivalents of $902,000. Regulatory
liquidity amounted to 13.88% at September 30, 1997.
Loans receivable increased by $2.7 million, or 3.6%, during the three month
period, to a total of $79.2 million at September 30, 1997. Loan disbursements
amounted to $6.5 million and were partially offset by principal repayments of
$3.8 million. Loan disbursements decreased by $1.5 million, or 18.6%, during the
three months ended September 30, 1997, as compared to the same period in 1996.
The allowance for loan losses totaled $472,000 at September 30, 1997, as
compared to $478,000 at June 30, 1997. Nonperforming loans totaled $457,000 at
September 30, 1997, as compared to $508,000 at June 30, 1997. The allowance for
loan losses represented 103.3% of nonperforming loans as of September 30, 1997
and 94.1% at June 30, 1997. Although management believes that its allowance for
loan losses at September 30, 1997 is adequate based upon the available facts and
circumstances, there can be no assurances that additions to such allowance will
not be necessary in future periods, which could adversely affect the
Corporation's results of operations.
Deposits totaled $74.1 million at September 30, 1997, an increase of $1.2
million, or 1.6%, over June 30, 1997 levels. Management continued its effort to
achieve a moderate rate of growth in the deposit portfolio through marketing and
pricing strategies.
10
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Community Investors Bancorp, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Discussion of Financial Condition Changes from June 30, 1997 to September 30,
1997 (continued)
The Association is required to meet each of three minimum capital standards
promulgated by the Office of Thrift Supervision (OTS), hereinafter described as
the tangible capital requirement, the core capital requirement and the
risk-based capital requirement. The tangible capital requirement mandates
maintenance of stockholders' equity less all intangible assets equal to 1.5% of
adjusted total assets. The core capital requirement provides for the maintenance
of tangible capital plus certain forms of supervisory goodwill equal to 3% of
adjusted total assets, while the risk-based capital requirement mandates
maintenance of core capital plus general loan loss allowances equal to 8% of
risk-weighted assets as defined by OTS regulations.
At September 30, 1997, the Association's tangible and core capital totaled $10.6
million, or 11.2%, of adjusted total assets, which exceeded the minimum
requirements of $1.4 million and $2.8 million by $9.2 million and $7.8 million,
respectively. The Association's risk-based capital of $11.1 million, or 21.4% of
risk-weighted assets, exceeded the current 8% requirement by $7.0 million.
Comparison of Operating Results for the Three Month Periods Ended September 30,
1997 and 1996
General
The Corporation's net earnings totaled $236,000 for the three months ended
September 30, 1997, an increase of $339,000, or 329.1%, from the $103,000 of net
loss reported for the same period in 1996. The 1996 loss resulted primarily from
a one-time charge of $458,000 recorded in the 1996 period reflecting the
assessment to recapitalize the Savings Association Insurance Fund (the "SAIF").
There was no SAIF assessment in the 1997 period, which was the primary reason
for the significant increase in earnings. The increase was also a result of a
$17,000 increase in other income, a $11,000 increase in net interest income, and
a $44,000 decrease in the provision for losses on loans, which were partially
offset by a $35,000 increase in general, administrative and other expense
(excluding the above SAIF assessment) and a $156,000 increase in the provision
for federal income taxes.
Net Interest Income
Net interest income increased by $11,000, or 1.4%, for the three months ended
September 30, 1997, compared to the 1996 period. Interest income on loans and
mortgage-backed securities increased by $186,000, or 12.7%, due primarily to a
$9.1 million increase in the average balance of loans and mortgage-backed
securities outstanding year-to-year, which was partially offset by a 2 basis
point decline in the average yield, to 8.32% in the 1997 period. Interest income
on investment securities and interest-bearing deposits decreased by $143,000, or
46.4%, due primarily to a $8.5 million decrease in the average portfolio balance
outstanding year-to-year, combined with a 38 basis point decrease in the average
yield, to 5.85% in the 1997 period.
Interest expense on deposits increased by $73,000, or 9.0%, due primarily to a
$3.5 million increase in the average balance of deposits outstanding
year-to-year, combined with a 18 basis point increase in the cost of deposits
year-to-year, to 4.81% in the 1997 period. Interest expense on borrowings
decreased by $41,000 during the current period, due primarily to a $3.0 million
decrease in the weighted-average balance of advances from the Federal Home Loan
Bank outstanding.
11
<PAGE>
Community Investors Bancorp, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Comparison of Operating Results for the Three Month Periods Ended September 30,
1997 and 1996 (continued)
Net Interest Income (continued)
As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $11,000, or 1.4%, to a total of $813,000 for
the three months ended September 30, 1997. The interest rate spread remained
constant at approximately 3.08% during the respective 1997 and 1996 periods,
while the net interest margin totaled approximately 3.58% in 1997, as compared
to 3.56% in 1996.
Provision for Losses on Loans
A provision for losses on loans is charged to earnings to bring the total
allowance for loan losses to a level considered appropriate by management based
on historical experience, the volume and type of lending conducted by the
Association, the status of past due principal and interest payments, general
economic conditions, particularly as such conditions relate to the Association's
market area, and other factors related to the collectibility of the
Association's loan portfolio. As a result of such analysis, management recorded
a $2,000 provision for losses on loans during the three month period ended
September 30, 1997, a decrease of $44,000, or 95.7%, from the 1996 period. There
can be no assurance that the loan loss allowance of the Association will be
adequate to cover losses on nonperforming assets in the future.
Other Income
Other income increased by $17,000, or 65.4%, for the three months ended
September 30, 1997, compared to the same period in 1996.
General, Administrative and Other Expense
General, administrative and other expense decreased by $423,000, or 46.5%,
during the three months ended September 30, 1997, compared to the same period in
1996. The 1996 expense resulted primarily from the one-time charge of $458,000
recorded in 1996 attendant to the aforementioned SAIF recapitalization. There
was no SAIF assessment in the 1997 period. However, the 1997 expense decrease
was partially offset by an increase of $78,000, or 48.4%, in employee
compensation and benefits compared to the same period in 1996. The increase in
employee compensation and benefits is attributable to salaries associated with
the addition of a key employee during the three months ended September 30, 1997,
as compared to the same period in 1996, as well as general merit increases
period-to-period.
Additionally, the decrease in general, administrative and other expense resulted
from a $9,000, or 7.3%, decrease in other operating expense, which was partially
offset by a $6,000, or 18.2%, increase in franchise tax expense.
Federal Income Taxes
The provision for federal income taxes totaled $131,000 for the three months
ended September 30, 1997. The effective tax rate was 35.7% for the three months
ended September 30, 1997. The effective tax rates were 35.7% and (19.5)% for the
three months ended September 30, 1997 and 1996, respectively.
12
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Community Investors Bancorp, Inc.
PART II
ITEM 1. Legal Proceedings
Not applicable
ITEM 2. Changes in Securities
Not applicable
ITEM 3. Defaults Upon Senior Securities
Not applicable
ITEM 4. Submission of Matters to a Vote of Security Holders
On October 20, 1997, the Annual Meeting of the Corporation's
Stockholders was held. Three directors nominated were elected
to terms expiring in two years by the following votes.
Brent D. Fissel, D.D.S. For: 753,892 Abstain: 4,714
Dale C. Hoyles For: 751,566 Abstain: 7,070
Thomas P. Moore For: 755,466 Abstain: 3,140
One other matter was submitted to the stockholders, for which
the following votes were cast:
Ratification of the appointment of Grant Thornton LLP as
independent auditors of the Corporation for the fiscal year
ended June 30, 1998.
For: 751,456 Against: 2,538 Abstain: 4,612
ITEM 5. Other Materially Important Events
None
ITEM 6. Exhibits and Reports on Form 8-K
Exhibits: Financial data schedule for the three months
ended September 30, 1997.
Report on Form 8-K: None.
13
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Community Investors Bancorp, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: November 10, 1997 By: /s/John W. Kennedy
-------------------------- ------------------
John W. Kennedy
President and Chief
Executive Officer
Date: November 10, 1997 By: /s/Robert W. Siegel
--------------------------- -------------------
Robert W. Siegel
Controller
14
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 575
<INT-BEARING-DEPOSITS> 873
<FED-FUNDS-SOLD> 60
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 1,503
<INVESTMENTS-CARRYING> 10,239
<INVESTMENTS-MARKET> 10,175
<LOANS> 79,160
<ALLOWANCE> 472
<TOTAL-ASSETS> 94,328
<DEPOSITS> 74,075
<SHORT-TERM> 0
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0
0
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</TABLE>
