Indiana Business Bancorp Reports Third Quarter Results
Indiana Business Bancorp Reports Third Quarter Results
INDIANAPOLIS--(BUSINESS WIRE)-- Indiana Business Bancorp (OTCBB: IBBI), the holding company for Indiana Business Bank, announced results for the three and nine months ended September 30, 2012.
The company recorded a profit of $166,367 or $.11 per share and $549,559 or $.36 per share for the quarter and year to date, respectively. This compares to a profit of $135,136 or $.09 per share and $345,998 or $.23 per share for the same periods in 2011. The 2012 results include recognition of a tax benefit of $50,000 for the quarter and $150,000 for the year to date from the carryover of net operating losses. Net income for 2011 does not reflect a similar credit because the period ended December 31, 2011 was the first reporting period in which the company satisfied accounting rules for tax benefit recognition. Net income before the tax benefit was $116,367 and $399,559 for the three and nine months ended September 30, 2012.
Net interest income of $703,998 for the quarter was essentially flat relative to net interest income of $709,594 reported in the third quarter of 2011, due primarily to a smaller base of earning assets. The net interest margin improved, despite the lower level of earning assets, from 3.90% in 2011 to 4.56% in 2012 due to a 41 basis point reduction in the cost of funds and a 25 basis point improvement in the yield on earning assets. Net interest income of $2,162,515 for the nine months reflects a 3.78% increase over the same period in 2011.
Non-interest income of $61,673 for the quarter was lower than the $195,624 reported in the third quarter of 2011. Non-interest income in the third quarter of 2011 included gains received on the sale of two large SBA loans from a single borrower. Non-interest expense (generally salaries and other operating expenses) of $591,304 for the quarter was essentially flat relative to non-interest expense of $590,082 in the same period in 2011. Year to date non-interest expense of $1,756,820 was slightly lower than the $1,773,317 reported for the year to date period in 2011.
The provision for loan losses declined from $460,000 for the first nine months of 2011 to $238,000 during the comparable period in 2012. This is primarily the result of a smaller loan portfolio. At September 30, 2012, the allowance for loan losses was $1,512,852, which represented 2.92% of total loans. At September 30, 2011, the allowance for loan losses was $1,422,890, which represented 2.66% of loans.
The bank's regulatory capital ratios substantially exceeded the amounts needed to be considered "well capitalized" at September 30, 2012.
President and CEO James S. Young stated, "Economic uncertainties and competitive pressures present a challenging environment for originating quality small business relationships. However, we believe that by taking advantage of the interest rate environment to reduce funding costs, combined with disciplined expense control will position the bank to capitalize on the credit opportunities that meet our standards." Young added, "We will continue to pursue quality small business relationships, closely monitor our existing loan portfolio and maintain our low expense profile."
About Indiana Business Bancorp and Indiana Business Bank
Indiana Business Bancorp is a bank holding company whose operations are conducted through its subsidiary, Indiana Business Bank, a state-chartered, locally-owned and managed commercial bank formed for the purpose of providing highly-personalized banking services for small to medium-sized businesses, their owners and professional services firms in the Indianapolis, Indiana metropolitan area. The bank provides a full line of commercial banking loan, deposit, and cash management services that are delivered in a highly personalized manner by experienced banking professionals. The bank specializes in serving the commercial and consumer banking needs of small to medium sized businesses and their owners, and professionals located primarily throughout Central Indiana.
We routinely post important information for investors on our website, http://www.indianabb.com in the "About" section under "Investor Relations". We intend to use this website as a means of providing financial and other information to investors and other interested parties. Accordingly, investors should monitor our website, in addition to following our press releases and other presentations. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Indiana Business Bank and Indiana Business Bancorp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties which may cause actual results to differ materially from expected results, including: changes in general, regional and local economic conditions, and their effect on interest rates; the impact of the downturn in housing and the adverse conditions in the credit markets; competition among banks and other financial intermediaries within the Indianapolis metropolitan market; risks that borrowers may default on their loans; and changes in regulations and accounting policies affecting financial institutions.
As of and for the Three Months
As of and for the
|Net Interest Income||703,998||709,594||2,162,515||2,083,726|
|Provision for Loan Losses||58,000||180,000||238,000||460,000|
|Pre-Tax Net Income||116,367||135,136||399,559||345,998|
|Per Share Data|
|Net Earnings (Loss) per share||.11||.09||.36||.23|
Weighted Average Shares Outstanding
|Balance Sheet Data||
September 30, 2012
|December 31, 2011||September 30, 2011|
|Allowance for Loan Losses||1,512,852||1,468,949||1,422,890|
|Total Shareholders' Equity||9,491,502||8,926,659||8,495,408|
KEYWORDS: United States North America Indiana
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