Community Bank Shares of Indiana Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. The company reported third quarter net income available to common shareholders of $692,000, a decrease of 25% over $919,000 for the same quarter in 2008. The decrease in third quarter net income available to common shareholders was primarily driven by the OTTI charge of $1.1 million, which was offset by a decline in the provision for loan losses of $550,000. Earnings per basic and diluted common share decreased to $0.21 for the third quarter 2009 from $0.28 for the same period in 2008. Excluding the OTTI charge, the company's non-GAAP net income available to common shareholders was $1.4 million for the third quarter of 2009, or $0.43 per diluted common share. Interest income was $9,817,000 against $11,280,000 last year. Net interest income was $6,092,000 against $5,946,000 last year. Income before income taxes was $1,039,000 against $1,142,000 last year. Net income in the quarter was also impacted by a decrease in salaries and benefits of 15.7% for the three months ended September 30, 2009, compared to the same period in 2008. This was offset by higher premiums for FDIC insurance, legal fees associated with loan collections, as well as data processing costs. For the nine months, the company reported net loss available to common shareholders of $23,646,000 against net income available to common shareholders of $2,173,000 last year. Loss was $7.27 per basic and diluted common share against earnings of $0.67 per basic share and $0.66 per diluted share last year. Interest income was $29,584,000 against $34,170,000 last year. Net interest income was $17,361,000 against $17,614,000 last year. Loss before income taxes was $28,383,000 against income before income taxes of $2,436,000 last year. The company also announced that its board of directors approved a quarterly cash dividend on the company's common stock of $0.10 per share payable on November 25, 2009 to shareholders of record at close of business on November 9, 2009. During the third quarter of 2009, the company recorded a charge of $1.1 million for other-than-temporary impairment in its investment portfolio. Net loan charge-offs to average assets was 0.42% as of September 30, 2009 against 2.25% as of June 30, 2009.

Community Bank Shares of Indiana Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the three months ended June 30, 2009, the company reported interest income of $9,463,000, net interest income of $5,429,000, loss before income taxes of $30,099,000, net loss of $24,870,000, net loss available to common shareholders of $24,961,000, or $7.67 per diluted share, compared to interest income of $11,088,000, net interest income of $5,886,000, income before income taxes of $87,000, net income of $218,000, net income available to common shareholders of $218,000, or $0.06 per diluted share for the same period a year ago. For the six months ended June 30, 2009, the company reported interest income of $19,767,000, net interest income of $11,269,000, loss before income taxes of $29,422,000, net loss of $24,247,000, net loss available to common shareholders of $24,338,000, or $7.49 per diluted share, compared to interest income of $22,890,000, net interest income of $11,668,000, income before income taxes of $1,294,000, net income of $1,254,000, net income available to common shareholders of $1,254,000, or $0.38 per diluted share for the same period a year ago. The company reported a non-cash goodwill and other intangible asset impairment charge of $16.2 million or $4.96 per diluted common share and a provision for loan losses, net of tax, of $9.4 million during the second quarter of 2009, which resulted in a net loss available to common shareholders of $25.0 million or $7.67 per diluted common share. The non-GAAP net loss of $8.8 million during the second quarter was primarily driven by a pre-tax loan loss provision of $14.3 million. The Company also announced that its board of directors approved a quarterly cash dividend on the Company's common stock of $0.10 per share a reduction of 42.9% from the $0.175 declared for the second quarter 2009 dividend. The dividend is payable on September 10, 2009 to shareholders of record at close of business on August 28, 2009.

Community Bank Shares of Indiana Inc. filed the Articles of Amendment with the Indiana Secretary of State for the purpose of amending its Amended and Restated Articles of Incorporation to fix the designations, preferences, limitations and relative rights of the Series A Preferred Stock. The Articles of Amendment were effective as of May 26, 2009, but no stock was issued thereunder until May 29, 2009.