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, 1999
-----------------------------------------------
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 11, 1999, the latest practicable date, 1,218,684 shares of the
registrant's common stock, $.01 par value, were issued and outstanding.
Page 1 of 15 pages
<PAGE>
INDEX
Page
PART I - FINANCIAL INFORMATION
Consolidated Statements of Financial Condition 3
Consolidated Statements of Earnings 4
Consolidated Statements of Comprehensive Income 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 8
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 10
PART II - OTHER INFORMATION 14
SIGNATURES 15
2
<PAGE>
<TABLE>
Community Investors Bancorp, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
September 30, June 30,
ASSETS 1999 1999
<S> <C> <C>
Cash and due from banks $ 1,880 $ 2,142
Federal funds sold 309 724
Interest-bearing deposits in other financial institutions 592 631
------- -------
Cash and cash equivalents 2,781 3,497
Investment securities available for sale - at market 4,832 3,847
Investment securities held to maturity - at amortized cost, approximate market
value of $3,655 and $3,647 as of September 30, 1999 and June 30, 1999 3,695 3,664
Mortgage-backed securities available for sale - at market 10,714 11,670
Mortgage-backed securities held to maturity - at amortized cost, approximate market
value of $859 and $872 as of September 30, 1999 and June 30, 1999 870 913
Loans receivable - net 92,873 89,922
Property acquired in settlement of loans 173 50
Office premises and equipment - at depreciated cost 716 720
Federal Home Loan Bank stock - at cost 1,388 1,363
Accrued interest receivable on loans 117 65
Accrued interest receivable on mortgage-backed securities 62 69
Accrued interest receivable on investments and interest-bearing deposits 186 86
Prepaid expenses and other assets 131 127
Prepaid federal income taxes 50 23
Deferred federal income taxes 144 208
------- -------
Total assets $118,732 $116,224
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 80,131 $ 79,954
Advances from the Federal Home Loan Bank 27,273 25,291
Advances by borrowers for taxes and insurance 3 1
Accrued interest payable 359 369
Other liabilities 238 192
------- -------
Total liabilities 108,004 105,807
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; 1,660,850 shares issued 17 17
Additional paid-in capital 7,096 7,084
Retained earnings, restricted 8,543 8,370
Shares acquired by stock benefit plans (590) (610)
Less 442,166 shares of treasury stock - at cost (4,189) (4,189)
Unrealized losses on securities designated as available for sale, net of
related tax effects (149) (255)
------- -------
Total stockholders' equity 10,728 10,417
------- -------
Total liabilities and stockholders' equity $118,732 $116,224
======= =======
</TABLE>
3
<PAGE>
<TABLE>
Community Investors Bancorp, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF EARNINGS
For the three month periods ended September 30,
(In thousands, except share data)
1999 1998
<S> <C> <C>
Interest income
Loans $1,748 $1,730
Mortgage-backed securities 168 30
Investment securities 149 193
Interest-bearing deposits and other 9 57
----- -----
Total interest income 2,074 2,010
Interest expense
Deposits 877 912
Borrowings 344 255
----- -----
Total interest expense 1,221 1,167
----- -----
Net interest income 853 843
Provision for losses on loans 22 26
----- -----
Net interest income after provision
for losses on loans 831 817
Other income
Gain on sale of other repossessed assets 2 -
Other operating 68 57
----- -----
Total other income 70 57
General, administrative and other expense
Employee compensation and benefits 269 283
Occupancy and equipment 34 30
Federal deposit insurance premiums 12 11
Franchise taxes 32 41
Expenses of property acquired in settlement of loans 8 4
Data processing 59 51
Other operating 109 106
----- -----
Total general, administrative and other expense 523 526
----- -----
Earnings before income taxes 378 348
Federal income taxes
Current 166 96
Deferred (40) 19
----- -----
Total federal income taxes 126 115
----- -----
NET EARNINGS $ 252 $ 233
===== =====
EARNINGS PER SHARE
Basic $.22 $.20
=== ===
Diluted $.22 $.19
=== ===
</TABLE>
4
<PAGE>
<TABLE>
Community Investors Bancorp, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three months ended September 30,
(In thousands)
1999 1998
<S> <C> <C>
Net earnings $ 252 $233
Other comprehensive income, net of tax:
Unrealized holding gains on securities during the period 106 7
---- ---
Comprehensive income $ 358 $240
==== ===
Accumulated comprehensive losses $(149) $ (7)
==== ===
</TABLE>
5
<PAGE>
<TABLE>
Community Investors Bancorp, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended September 30,
(In thousands)
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net earnings for the period $ 252 $ 233
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
Amortization of discounts and premiums on loans,
investments and mortgage-backed securities - net 12 (12)
Amortization of deferred loan origination fees (20) (58)
Depreciation and amortization 14 11
Provision for losses on loans 22 26
Amortization expense of stock benefit plans 32 -
Gain on sale of property acquired in settlement of loans (2) -
Federal Home Loan Bank stock dividends (25) (17)
Increase (decrease) in cash due to changes in:
Accrued interest receivable on loans (52) (43)
Accrued interest receivable on mortgage-backed securities 7 (56)
Accrued interest receivable on investments and
interest-bearing deposits (100) 91
Prepaid expenses and other assets (4) 35
Accrued interest payable (10) 27
Other liabilities 46 64
Federal income taxes
Current 37 (6)
Deferred (40) 19
------ ------
Net cash provided by operating activities 169 314
Cash flows provided by (used in) investing activities:
Proceeds from maturity of investment securities 1 1,828
Purchase of investment securities designated as available for sale (1,000) -
Purchase of mortgage-backed securities designated as available for sale - (10,178)
Principal repayments on mortgage-backed securities 1,129 90
Loan principal repayments 11,336 13,271
Loan disbursements (14,491) (14,783)
Purchase of office premises and equipment (11) (44)
Proceeds from sale of other repossessed assets 69 -
Purchase of Federal Home Loan Bank stock - (452)
------ ------
Net cash used in investing activities (2,967) (10,268)
------ ------
Net cash used in operating and investing
activities (subtotal carried forward) (2,798) (9,954)
------ ------
</TABLE>
6
<PAGE>
<TABLE>
Community Investors Bancorp, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
For the three months ended September 30,
(In thousands)
1999 1998
<S> <C> <C>
Net cash used in operating and investing activities
(subtotal brought forward) $(2,798) $(9,954)
Cash flows provided by (used in) financing activities:
Net increase in deposit accounts 177 1,520
Proceeds from Federal Home Loan Bank advances 13,000 12,000
Repayment of Federal Home Loan Bank advances (11,018) (2,020)
Advances by borrowers for taxes and insurance 2 3
Purchase of treasury stock - (334)
Dividends on common stock (79) (75)
------ ------
Net cash provided by financing activities 2,082 11,094
------ ------
Net increase (decrease) in cash and cash equivalents (716) 1,140
Cash and cash equivalents at beginning of period 3,497 2,793
------ ------
Cash and cash equivalents at end of period $ 2,781 $ 3,933
====== ======
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Federal income taxes $ 142 $ 101
====== ======
Interest on deposits and borrowings $ 1,131 $ 1,140
====== ======
Supplemental disclosure of noncash investing activities:
Unrealized gains on securities designated as available for
sale, net of related tax effects $ 106 $ 7
====== ======
</TABLE>
7
<PAGE>
Community Investors Bancorp, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended September 30, 1999 and 1998
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 Community Investors Bancorp, Inc.
(the "Corporation") included in the Annual Report on Form 10-KSB for the
year ended June 30, 1999. 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 period ended
September 30, 1999 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
the Corporation and its wholly owned subsidiary, First Federal Savings and
Loan Association of Bucyrus (the "Association"). All significant
intercompany items have been eliminated.
3. Earnings Per Share
Basic earnings per share is computed based upon the weighted-average common
shares outstanding during the period less shares in the ESOP that are
unallocated and not committed to be released. Weighted-average common
shares deemed outstanding, which gives effect to 79,272 unallocated ESOP
shares, totaled 1,139,412 for the three month period ended September 30,
1999. Weighted-average common shares deemed outstanding, which gives effect
to 92,709 unallocated ESOP shares, totaled 1,162,785 for the three month
period ended September 30, 1998.
Diluted earnings per share is computed taking into consideration common
shares outstanding and dilutive potential common shares to be issued under
the Corporation's stock option plan. Weighted-average common shares deemed
outstanding for purposes of computing diluted earnings per share totaled
1,162,133 and 1,205,031 for the three month periods ended September 30,
1999 and 1998, respectively. Incremental shares related to the assumed
exercise of stock options included in the calculation of diluted earnings
per share totaled 22,721 and 42,246 for the three month periods ended
September 30, 1999 and 1998, respectively. Options to purchase 19,521
shares of common stock with a weighted-average exercise price of $10.72
were outstanding at September 30, 1999, but were excluded from the
computation of diluted earnings per share because their exercise prices
were greater than the average market price of the common shares.
8
<PAGE>
Community Investors Bancorp, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the three months ended September 30, 1999 and 1998
4. Effects of Recent Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting
for Derivative Instruments and Hedging Activities," which requires entities
to recognize all derivatives in their financial statements as either assets
or liabilities measured at fair value. SFAS No. 133 also specifies new
methods of accounting for hedging transactions, prescribes the items and
transactions that may be hedged, and specifies detailed criteria to be met
to qualify for hedge accounting.
The definition of a derivative financial instrument is complex, but in
general, it is an instrument with one or more underlyings, such as an
interest rate or foreign exchange rate, that is applied to a notional
amount, such as an amount of currency, to determine the settlement
amount(s). It generally requires no significant initial investment and can
be settled net or by delivery of an asset that is readily convertible to
cash. SFAS No. 133 applies to derivatives embedded in other contracts,
unless the underlying of the embedded derivative is clearly and closely
related to the host contract.
SFAS No. 133, as amended by SFAS No. 137, is effective for fiscal years
beginning after June 15, 2000. On adoption, entities are permitted to
transfer held-to-maturity debt securities to the available-for-sale or
trading category without calling into question their intent to hold other
debt securities to maturity in the future. SFAS No. 133 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 loan losses, the effect of the year 2000 on certain information technology
systems and the effect of certain recent accounting pronouncements.
Discussion of Financial Condition Changes from June 30, 1999 to September 30,
1999
At September 30, 1999, the Corporation's assets totaled $118.7 million, an
increase of $2.5 million, or 2.2%, over the level reported at June 30, 1999. The
increase in assets was funded primarily through an increase in advances from the
Federal Home Loan Bank of $2.0 million, combined with growth in the deposit
portfolio.
Liquid assets (i.e. cash, interest-bearing deposits, investment securities, and
mortgage-backed securities available for sale) decreased by $656,000 during the
three month period, to a total of $22.0 million at September 30, 1999, as
maturities of mortgage-backed securities of $1.1 million and a $716,000 decrease
in cash and cash equivalents were partially offset by purchases of investment
securities totaling $1.0 million. The purchases include government agency
securities and bear a weighted average interest rate of 8.25%. The purchases
were financed using variable-rate advances from the Federal Home Loan Bank,
coupled with previously mentioned maturities of mortgage-backed securities.
Regulatory liquidity amounted to 10.8% at September 30, 1999.
Loans receivable totaled $92.9 million at September 30, 1999, an increase of
$3.0 million, or 3.3%, over June 30, 1999. Loan disbursements amounted to $14.5
million and were partially offset by principal repayments of $11.3 million. The
volume of loan disbursements during the three months ended September 30, 1999
remained consistent with the volume achieved during the three months ended
September 30, 1998. The allowance for loan losses totaled $582,000 at September
30, 1999, as compared to $591,000 at June 30, 1999. Nonperforming loans totaled
$765,000 at September 30, 1999, as compared to $912,000 at June 30, 1999. The
allowance for loan losses represented 76.1% of nonperforming loans as of
September 30, 1999 and 64.8% at June 30, 1999. Although management believes that
its allowance for loan losses at September 30, 1999, is adequate based upon the
available facts and circumstances, there can be no assurance that additions to
such allowance will not be necessary in future periods, which could adversely
affect the Corporation's results of operations.
10
<PAGE>
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, 1999 to September 30,
1999 (continued)
Deposits totaled $80.1 million at September 30, 1999, an increase of $177,000,
or .2%, over June 30, 1999 levels. Management continued its efforts to achieve a
moderate rate of growth through marketing and pricing strategies.
Advances from the Federal Home Loan Bank totaled $27.3 million at September 30,
1999, an increase of $2.0 million, or 7.8%, over June 30, 1999 levels. The
increase resulted primarily from fixed-rate advances used to fund loan growth
and the purchase of investment securities, as previously discussed.
The Association is required to meet minimum capital standards promulgated by the
Office of Thrift Supervision (OTS). At September 30, 1999, the Association's
capital was well in excess of such minimum capital requirements.
Comparison of Operating Results for the Three Month Periods Ended September 30,
1999 and 1998
General
The Corporation's net earnings totaled $252,000 for the three months ended
September 30, 1999, an increase of $19,000, or 8.2%, over the $233,000 of net
earnings reported for the same period in 1998. The increase in earnings resulted
primarily from a $10,000 increase in net interest income and a $13,000 increase
in other income, which were partially offset by an $11,000 increase in federal
income tax expense.
Net Interest Income
Net interest income increased by $10,000, or 1.2%, for the three months ended
September 30, 1999, compared to the 1998 period. Interest income on loans
increased by $18,000, or 1.0%, due primarily to a $7.7 million increase in the
average net portfolio balance of loans outstanding year-to-year, partially
offset by a decline in the average yield. Interest income on investment and
mortgage-backed securities and interest-bearing deposits increased by $46,000,
or 16.4%, due primarily to an increase in the average portfolio balance
outstanding.
Interest expense on deposits decreased by $35,000, or 3.8%, due primarily to a
decline in the cost of deposits year-to-year, which was partially offset by a
$3.0 million increase in the average balance of deposits outstanding. Interest
expense on borrowings increased by $89,000, or 34.9%, due primarily to a $6.7
million increase in the weighted-average balance of advances from the Federal
Home Loan Bank outstanding.
As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $10,000, or 1.2%, to a total of $853,000 for
the three months ended September 30, 1999. The interest rate spread amounted to
approximately 2.57% in the 1999 three month period, as compared to 2.83% during
the 1998 period, while the net interest margin totaled approximately 2.96% in
1999, as compared to 3.22% in 1998.
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,
1999 and 1998 (continued)
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 $22,000 provision for losses on loans during the three month period ended
September 30, 1999, a decrease of $4,000 from the comparable 1998 period. The
current period provision reflects the growth in the loan portfolio integrated
with an overall decrease in nonperforming loans, which consists substantially of
one- to four-family residential mortgage loans that management deems to have
adequate levels of collateralization. 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 $13,000, or 22.8%, for the three months ended
September 30, 1999, compared to the same period in 1998, due primarily to an
increase in service fees on deposit accounts and transactions.
General, Administrative and Other Expense
General, administrative and other expense decreased by $3,000, or .6%, during
the three months ended September 30, 1999, compared to the same period in 1998.
This decrease resulted primarily from a $14,000, or 4.9%, decrease in employee
compensation and benefits, which was partially offset by an $8,000, or 15.7%,
increase in data processing expense. The increase in data processing expense
resulted primarily from an increase in item processing transaction levels,
coupled with increased costs attendant computer system upgrades.
Federal Income Taxes
The provision for federal income taxes increased by $11,000, or 9.6%, during the
three months ended September 30, 1999, as compared to the same period in 1998.
Net earnings before income taxes increased by $30,000, or 8.6%, compared to the
three months ended September 30, 1998. The effective tax rates were 33.3% and
33.0% for the three months ended September 30, 1999 and 1998, respectively.
12
<PAGE>
Community Investors Bancorp, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Year 2000 Compliance Matters
As with all providers of financial services, the Association's operations are
heavily dependent on information technology systems. The Association has
addressed the potential problems associated with the possibility that the
computers that control or operate the information technology system and
infrastructure may not be programmed to read four-digit date codes and, upon
arrival of the year 2000, may recognize the two-digit code "00" as the year
1900, causing systems to fail to function or to generate erroneous data.
As part of the awareness and assessment phases of its action plan related to the
Year 2000 problem, the Association identified the operating systems that it
considers critical to the on-going operations of the Association.
Of the systems that the Association identified as mission-critical, the most
significant is the on-line core account processing system that is performed by a
third party service provider, Intrieve, Inc. The service provider has converted
its hardware to a new Year 2000 compliant system. The Association's conversion
to this new system was completed during the fourth calendar quarter of 1998. The
service provider successfully performed Year 2000 proxy testing with several of
its larger users during early October 1998. Year 2000 compliance has become an
integral part of the Association's 1999 planning. With the completion of the
proxy testing of the mission critical systems the Association is now focusing on
the less critical portions of the year 2000 program.
The Association has developed a contingency plan in case the mission-critical
systems are not successfully renovated in a timely manner or if they actually
fail at Year 2000 critical dates. The contingency plan states that the
Association deems the likelihood of failure of the service provider's efforts to
renovate Year 2000 changes to the on-line core account processing system to be
remote. The plan, therefore, primarily addresses action to deal with the
possibility that the service provider's system may be down for several days or
weeks upon arrival of Year 2000. The Association has the ability to conduct and
process transactions manually for a period of time until the service bureau's
systems would be available.
Management of the Association has developed an estimate of expenses that are
reasonably likely to be incurred by the Association in connection with this
issue; however, the Association does not expect to incur significant expense to
implement the necessary corrective measures. As of September 30, 1999, the
Association has expensed approximately $4,000 to ensure all mission critical
systems will be functional upon arrival of Year 2000. No assurance can be given,
however, that significant expense will not be incurred in future periods. In the
event that the Association is ultimately required to purchase replacement
computer systems, programs and equipment, or incur substantial expense to make
the Association's current systems, programs and equipment Year 2000 compliant,
the Association's net earnings and financial condition could be adversely
affected.
In addition to possible expense related to its own systems, the Association
could incur losses if loan payments are delayed due to Year 2000 problems
affecting any major borrowers in the Association's primary market area. Because
the Association's loan portfolio is highly diversified with regard to individual
borrowers and types of businesses and the Association's primary market area is
not significantly dependent upon one employer or industry, the Association does
not expect any significant or prolonged difficulties that will affect net
earnings or cash flow.
13
<PAGE>
Community Investors Bancorp, Inc.
PART II
ITEM 1. Legal Proceedings
Not applicable
ITEM 2. Changes in Securities and Use of Proceeds
Not applicable
ITEM 3. Defaults Upon Senior Securities
Not applicable
ITEM 4. Submission of Matters to a Vote of Security Holders
On October 25, 1999, the Annual Meeting of the Corporation's
Stockholders was held. Three directors were elected to terms expiring
in two years by the following votes.
Dale C. Hoyles For: 883,236 Withhold: 119,567
Brent D. Fissel, D.D.S. For: 878,661 Withhold: 124,142
Michael J. Romanoff For: 871,461 Withhold: 131,342
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, 2000.
For: 984,916 Against: 17,325 Abstain: 562
ITEM 5. Other Information
None
ITEM 6. Exhibits and Reports on Form 8-K
Reports on Form 8-K: None.
Exhibits:
15 Independent Accountants' Report
27 Financial Data Schedule for the three
months ended September 30, 1999.
14
<PAGE>
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 12, 1999 By: /s/John W. Kennedy
--------------------------- -------------------------------
John W. Kennedy
President and Chief
Executive Officer
Date: November 12, 1999 By: /s/Robert W. Siegel
--------------------------- -------------------------------
Robert W. Siegel
Assistant Vice President
and Controller
15
Independent Accountants' Report
Board of Directors
Community Investors Bancorp, Inc.
119 South Sandusky Avenue
Bucyrus, Ohio 44820
We have reviewed the accompanying consolidated statements of financial
condition, earnings, comprehensive income, and cash flows of Community Investors
Bancorp, Inc. as of September 30, 1999, and for the three-month period then
ended. The financial statements are the responsibility of the Corporation's
management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated statement of financial condition as of June 30,
1999, and the related consolidated statements of earnings, stockholders' equity,
and cash flows for the year then ended (not presented herein) and in our report
dated August 19, 1999, we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth in the
accompanying consolidated statement of financial condition as of June 30, 1999,
is fairly stated, in all material respects, in relation to the consolidated
statement of financial condition from which it has been derived.
/s/GRANT THORNTON LLP
Cincinnati, Ohio
November 11, 1999
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 1,880
<INT-BEARING-DEPOSITS> 592
<FED-FUNDS-SOLD> 309
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 15,546
<INVESTMENTS-CARRYING> 4,565
<INVESTMENTS-MARKET> 4,514
<LOANS> 92,873
<ALLOWANCE> 582
<TOTAL-ASSETS> 118,732
<DEPOSITS> 80,131
<SHORT-TERM> 0
<LIABILITIES-OTHER> 600
<LONG-TERM> 27,273
0
0
<COMMON> 17
<OTHER-SE> 10,711
<TOTAL-LIABILITIES-AND-EQUITY> 118,732
<INTEREST-LOAN> 1,748
<INTEREST-INVEST> 317
<INTEREST-OTHER> 9
<INTEREST-TOTAL> 2,074
<INTEREST-DEPOSIT> 877
<INTEREST-EXPENSE> 1,221
<INTEREST-INCOME-NET> 853
<LOAN-LOSSES> 22
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 523
<INCOME-PRETAX> 378
<INCOME-PRE-EXTRAORDINARY> 252
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<EPS-BASIC> .22
<EPS-DILUTED> .22
<YIELD-ACTUAL> 2.96
<LOANS-NON> 0
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<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 582
</TABLE>
