QUARTERLY FINANCIAL STATEMENT
Dear Shareholders:
Net income was $706,221 for the year ended 2011 (un-audited) as compared to $384,194 for the previous year. This reported income on a per share basis equals $2.25 as compared to $1.23 per share for the previous year. The net interest margin is at 4.09% compared to a 4.11% margin at the same period of the prior year.
Past due loans are at 4.97% of total loans, compared to 2.68% one year ago. Residential mortgage loan delinquency rates increased dramatically during the first quarter of 2011 and where followed by a steady decline throughout the remainder of 2011. Funding of the loan loss reserve reached $1,050,000, which is an increase of $300,000 over the previous year. Net charge off ended the year at $688,825 leaving the loan loss reserve at 1.84% of total loans. Other Real Estate (ORE) at $532,947 represents a decline of $620,766 since the end of 2010. The inventory of property includes both residential and commercial real estate. Various methods are being used to liquidate these properties. Visit the banks web site at www.gotocsb.com to see the listing of properties the bank has for sale.
The bank's Tier 1 risk based capital ratio is at 12.54% as compared to 11.60% one year ago and 10.02% on 12-31-07, following the merger with the Montrose State Bank. Community State Bank is considered "well-capitalized" under regulatory guidelines. Taking into consideration the quarterly and annual earnings, no dividend was paid for the period. The decision to issue a cash dividend will be re-evaluated on a quarterly basis. The most recent recorded transfer of Community Bancorp, Inc. shares traded at $52.00 per share. The book value is $61.54 per share.
The annual meeting of shareholders is scheduled for April 24, 2012 at the banks Thomas Township office, watch for details within the March Notice to Shareholders mailing.
Sincerely,
Robert M. Wolak
President & CEO
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