Community Bankshares of Indiana, New Albany, IN (CBIN)

A Case of the Road Less Gravelled

I love this bank! Since coming public over 15 years ago, Community Bankshares of Indiana has grown nicely from a little $130M thrift to an $800M commercial bank with a diversified loan portfolio.

CBIN stock is cheap no matter how you look at it: price to book value, price to tangible book, or price to earnings. I would guess that a year from now, tangible book could reach $20 a share and we’re likely to see the stock trading for 120% of book or better, paving the way for a nice return if you buy it today.

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Disclosure: As of this posting, I own shares of CBIN and may subsequently either dispose of them or purchase more.

Prospective Buyers	Although CBIN is surely an attractive acquisition target, I believe it should stay independent as long as Management continues to deliver such stellar returns.  MainSource Financial Group, Greensburg, IN (MSFG) Old National Bancorp, Evansville, IL (ONB) Republic Bancorp, Louisville, KY (RBCAA)
Financial Snapshot (as of 03/31/2013)	Total assets: $810M Tangible book value per share: $17.23 NPAs to assets: 2.6% Price to book: 61% Market cap: $53.6M Dividend yield: 2.8% Trailing 12-month return on assets: 0.95% Trailing 12-month return on equity: 9.11% TARP: $0M
Luminaries	Gary L. Libs, Chairman James D. Rickard, CEO and President Paul A. Chrisco, Executive VP and CFO
Gold Stars	I like these people! Although I don’t know them personally, I have a lot of confidence in CBIN's management team. Libs and Rickard have been driving this money-making machine together for more than a decade. Libs has been a Director since 1989, and Rickard has been CEO and President since 2000 CBIN insiders own a whopping 19% of stock, and have made eight separate insider purchases already this year. Which — if you’ve followed my work, you already know — I consider a super strong indicator of future success I like their numbers! Besides being solidly profitable for the past 15 quarters, CBIN: Ranks in the top quartile of U.S. banks in ROE and ROA Has reduced NPAs by more than 60% since they peaked in 2011 Has shown it can effectively acquire other banks — three so far! (most recently, First Federal Bank of Lexington, KY)
Sources	Your Community Bank website 2012 Annual Report April 2013 Proxy Statement December 2012 10-K SNL Financial