Indiana Business Bancorp Reports First Quarter Results
INDIANAPOLIS--(BUSINESS WIRE)-- Indiana Business Bancorp (OTCBB: IBBI), the holding company for Indiana Business Bank, announced results for the three months ended March 31, 2013.
The company recorded a profit of $234,355, or $.16 per share for the first quarter of 2013. This compares to a profit of $221,637, or $.15 per share for the first quarter of 2012. Earnings for the 2013 quarter reflect a 5.7% increase over the prior year period. The improvement in profitability was the result of lower provision expense and lower non-interest expense.
An improved net interest margin of 4.67% for the 2013 quarter, up from 4.53% during the first quarter of 2012, along with lower provision expense allowed the company to operate more profitably, despite a smaller balance sheet.
Non-interest income for the first quarter of 2013 was $133,885, compared to non-interest income of $133,187 for the first quarter of 2012. While non-interest income was essentially flat year over year, non-interest income for 2013 included a $36,000 write down of other real estate owned (OREO). Net of this write down, non-interest income would have increased by 28% from the first quarter of 2012. The primary driver of non-interest income for the bank continues to be gains on the sale of government guaranteed small business loans, which were $124,460 for the 2013 quarter, compared to $84,694 in the prior year period.
Non-interest expense (generally salaries and other operating expenses) declined slightly, from $609,491 for the first quarter of 2012, to $602,529 for the 2013 quarter. The largest expense savings were realized from lower OREO expense, due to lower repair and maintenance expenses, and lower FDIC deposit insurance expense following a managed run off of wholesale certificate of deposits.
The provision for loan losses for the first quarter of 2013 was $60,000, which was $30,000, or 33% less than the provision for the first quarter of 2012. The smaller provision reflects the continuing improvement in the overall credit environment and improved operations of our small business clients. The allowance for loan losses at March 31, 2013 was $1,289,671, or 2.49% of total loans.
The bank's Tier 1 Leverage Ratio of 15.61% and Total Risk Based Capital Ratio of 19.37% exceeded the levels needed to be considered "well capitalized" at March 31, 2013.
President and CEO James S. Young stated, "We are pleased with the operating performance of our bank and expect the balance of 2013 will deliver solid overall results."
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.
"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
Net Interest Income
Provision for Loan Losses
Pre Tax Net Income
Def Tax Benefit
After Tax Net Income
Per Share Data
Net Earnings (Loss) - Basic
Balance Sheet Data
March 31, 2013
December 31, 2012
March 31, 2012
Allowance for Loan Losses
Total Shareholders' Equity
KEYWORDS: United States North America Indiana
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