Tribune staff reports
The board of directors of Bancorp. of Southern Indiana, the parent company of JCB, recently declared a stock split of the company’s common shares in the ratio of three shares for each one share.
The gradual increase in the company’s market price over several years led to the decision, Marvin S. Veatch, vice president and treasurer of Bancorp. of Southern Indiana, said in a news release.
In addition, Veatch reported earnings of $3.260 million for 2015, representing a decrease of $491,000, or 13.1 percent, from 2014’s $3.751 million.
He said the decrease was primarily attributed to continuing net interest income compression and a year-over-year change in provision expense.
BSI’s assets totaled $494.9 million at year-end 2015, with total deposits increasing approximately $18.1 million on a year-over-year basis.
Earnings per share amounted to $7.21 compared with $8.29, respectively, a decrease of $1.08 per share. Return on average equity was 7.14 percent for 2015 versus 8.7 percent for 2014.
“Industry-wide, banks are facing excess liquidity, lower than desired loan demand and heavy competition, leading to net interest margin compression for many banks, including JCB,” Veatch said of 2015.
He said an improving national and regional economy, in conjunction with gradual gains in consumer and business confidence and BSI initiatives either already put in place or planned, lead the board of directors and leadership team to be encouraged about the future of the organization.
During the meeting, it was announced that John D. Britton and James A. Johnson will retire from the directorship of both BSI and JCB in January 2017.
Stockholders also re-elected directors David L. Bottorff, Britton and Warren L. Forgey and elected Marshall E. Royalty for the first time, with all being elected to three-year terms.
Chairman James T. McCoy reported that after nearly 36 years at the helm of JCB, current president and CEO David M. Geis will retire in April 2017. He will be replaced by Veatch.
As part of the transition, Veatch will hold the position of chief operating officer. He will be responsible for day-to-day operations and working with Geis over the next year before stepping into the CEO role.
McCoy said Geis plans to remain involved with BSI and JCB as a member of the board of directors and by serving on several board committees.
Veatch has served JCB as senior vice president and chief financial officer for 14 years. He also serves as secretary of the JCB board of directors.
He will relinquish his title and responsibilities of chief financial officer once a new CFO is hired. A search is currently underway.
JCB has nine locations in four southern Indiana counties, including its main office and two branches in Seymour and a branch in Brownstown.