Earnings at Community Bank Shares of Indiana Inc. increased 35.8% in the fourth quarter from a year earlier, to $1.4 million.

The $799.7 million-asset company in New Albany reported a $5.9 million profit for 2010, compared to a $22.6 million loss in 2009.

The company attributed the year-over-year turnaround to repositioning the funding side of its balance sheet, including building key relationships to increase core deposits and reducing its borrowings from the Federal Home Loan Bank.

The loan-loss provision fell 76% in 2010 from a year earlier, to $3.8 million. The ratio of nonperforming assets to total assets fell 84 basis points from a year earlier, to 3.6% at Dec. 31.

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