Indiana Business Bancorp Reports Second Quarter Results

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Indiana Business Bancorp Reports Second Quarter Results

INDIANAPOLIS--(BUSINESS WIRE)-- Indiana Business Bancorp (OTCBB: IBBI), the holding company for Indiana Business Bank, announced results for the three and six months ended June 30, 2013.

The company recorded a profit of $203,522 or $.13 per share and $437,877 or $.29 per share for the quarter and year to date, respectively. This compares to a profit of $161,575 or $.11 per share and $383,192 or $.25 per share for the same periods in 2012. Earnings for the quarter and for the year to date reflect improvements of 26% and 14.3%, respectively, over the prior year periods. The improvement in profitability is a result of lower cost of funds, lower credit costs and higher non-interest income.

Non-interest income for the second quarter of 2013 was $184,006 compared to $37,004 for the second quarter of 2012. The large increase in non-interest income was primarily driven by increased gains on the sale of government guaranteed small business loans and income earned from our remaining OREO (Other Real Estate Owned) property. Non-interest income year to date was $318,488 compared to $170,191 earned during the first six months of 2012.

Non-interest expense (generally salaries and other operating expenses) of $643,939 for the second quarter compares to non-interest expense of $556,025 during the prior year period. Year to date non-interest expense of $1,246,468 reflects a 7% increase, from $1,165,516 in the first half of 2012. The increase in non-interest expense is the result of an increase in staffing, merit salary increases, and increases in benefit costs.

The provision for loan losses was $60,000 for the second quarter and $120,000 for the year to date, which compares to $90,000 and $180,000, respectively, for the same periods in 2012. The smaller provision reflects the continuing improvement in the overall credit environment and improved operations of the company's small business clients. The allowance for loan losses at June 30, 2013 was $1,112,165 or 2.24% of total loans.

The bank's Tier 1 leverage ratio of 15.46% and Total Risk Based Capital ratio of 20.71% exceeded the levels needed to be considered "well capitalized" at June 30, 2013.

President and CEO James S. Young stated, "We continue to be pleased with our operating results. We remain confident that our bank is an attractive alternative for small business owners tired of dealing with large out of state banks."

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, 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 Ending June 30


As of and for the
Six Months Ending June 30

Operating Data   2013   2012   2013   2012
Net Interest Income   672,858   720,596   1,385,857   1,458,517
Provision for Loan Losses   60,000   90,000   120,000   180,000
Noninterest Income   184,603   37,004   318,488   170,191
Noninterest Expense   643,939   556,025   1,246,468   1,165,516
Pre-Tax Net Income   153,522   111,575   337,877   283,192
Tax Benefit   50,000   50,000   100,000   100,000
Net Income   203,522   161,575   437,877   383,192
Per Share Data                
Net Earnings per share   .13   .11   .29   .25
Weighted Average

Shares Outstanding





  1,514,165   1,512,185

As of

Balance Sheet Data  

June 30, 2013

  December 31, 2012   June 30, 2012
Total Assets 63,223,336 64,835,744 62,258,916
Total Loans 49,344,791 51,398,354 51,790,205
Allowance for Loan Losses 1,112,165 1,210,763 1,511,350
Investment Securities 7,413,552 5,477,029 4,923,165
Total Deposits 45,899,326 50,216,183 48,223,420
Total Shareholders' Equity 10,148,726 9,853,331 9,304,042

At the Company:
Indiana Business Bancorp
Gregory Gault, Executive Vice President, 317-218-2181
At Guy Johnson Public Relations:
Guy Johnson, 317-503-4605

KEYWORDS:   United States  North America  Indiana


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