INDIANAPOLIS–()–Indiana Business Bancorp (OTCBB: IBBI), the holding company for Indiana
Business Bank, announced results for the three months ended March 31,
2012.
“We will continue work to further improve
our net interest margin, generate non-interest income and manage problem
assets to the best possible outcome.”
The company recorded a profit of $221,617, or $.15 per share for the
quarter. This compares to a profit of $99,127, or $.07 per share for the
first quarter of 2011. The 2012 results include recognition of a $50,000
tax benefit from the carry over of net operating losses. Net income for
the first quarter of 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.
Pre-tax profits of $171,617 for the quarter represented a 73% increase
over profits for the first quarter of 2011. The increase in
profitability resulted from increased net interest income and lower loan
provision expense.
Net interest income for the first quarter of 2012 increased by 6.7%
compared with the first quarter of 2011. An improvement in net interest
margin, from 3.63% during first quarter 2011 to 4.53% during the same
period of 2012, allowed the company to overcome a reduction in earning
assets during the year.
Non-interest income of $133,187 for the period ended March 31, 2012
compares to non-interest income of $196,114 for the period ended March
31, 2011. The 2011 period included a gain on sale of two large Small
Business Administration guaranteed loans.
Non-interest expense (generally salaries and other operating expenses)
increased less than 2% from $598,565 for the first quarter of 2011 to
$609,491 for the same period of 2012. The increase resulted from
additional salary and benefit expense.
The provision for loan losses declined from $190,000 in the first
quarter of 2011 to $90,000 in the first quarter of 2012. This is the
result of an improving credit environment and a smaller loan portfolio.
The allowance for loan losses was $1,457,345 at March 31, 2012, which
represents 2.68% of total loans.
Non-performing assets (consisting of non-accrual loans, loans past due
over 90 days and other real estate owned) dropped by 44%, from
$5,254,415 at March 31, 2011, to $2,949,652 at March 31, 2012. This
improvement is the result of a combination of improved borrower
performance, payoffs, and liquidation of collateral.
The bank’s Tier 1 Leverage Ratio of 13.8% and Total Risk Based Capital
Ratio of 17.99% exceeded the levels needed to be considered “well
capitalized” at March 31, 2012.
President and CEO James S. Young stated, “We are pleased with our 2011
performance and the continuation of positive trends as we move through
2012. Problem asset management, an expanding net interest margin and
continued cost controls contributed to a strong first quarter. The
economy remains uncertain, but much progress has been made managing our
problem assets.” Young added, “We will continue work to further improve
our net interest margin, generate non-interest income and manage problem
assets to the best possible outcome.”
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.
UNAUDITED
As of and for the Three Months
Ending March 31
Operating Data
2012
2011
Net Interest Income
737,921
691,578
Provision for Loan Losses
90,000
190,000
Noninterest Income
133,187
196,114
Noninterest Expense
609,491
598,565
Net Income (Loss)
221,617
99,127
Per Share Data
Net Earnings (Loss) – Basic
.15
.07
Weighted Average Shares Outstanding
1,506,830
1,503,270
As of
Balance Sheet Data
March 31, 2012
December 31, 2011
March 31, 2011
Total Assets
64,370,720
65,567,929
73,949,962
Gross Loans
54,124,303
54,287,753
56,895,678
Allowance for Loan Losses
1,457,345
1,468,949
1,603,054
Investment Securities
3,542,250
3,474,450
5,458,550
Total Deposits
51,018,154
52,501,674
61,997,995
Total Shareholders’ Equity
9,102,604
8,926,659
8,186,870
Similar news: