INDIANAPOLIS, Aug. 07, 2015 (GLOBE NEWSWIRE) -- Indiana Business Bancorp (OTCBB:IBBI), the holding company for Indiana Business Bank, announced results for the three and six months ended June 30, 2015.
The company recorded a profit of $190,434 or $.11 per share and $392,662 or $.23 per share for the second quarter of 2015 and 2015 year to date, respectively. Pre-tax net income of $152,934 for the quarter represented a 73% increase over pre-tax net income of $88,469 reported in the second quarter of 2014. Year to date pre-tax net income increased 104% to $317,662 compared to pre-tax net income of $155,760 for the 2014 comparable period. The improvement in earnings in 2015 was primarily attributable to an increase in gains on loans sold.
Non-interest income for the second quarter of 2015 was $112,298 compared to $61,953 for the second quarter of 2014. Year to date 2015 non-interest income was $281,594 versus non-interest income of $147,177 in the same period last year. This income category is driven primarily by gains on SBA guaranteed loans sold. The origination and sale of SBA guaranteed loans continues to be a primary strategy of the bank’s business model.
Non-interest expense (generally salaries and other operating expenses) of $623,008 for the second quarter of 2015 compared to non-interest expense of $637,483 during the prior year period. Year to date 2015 non-interest expense of $1,286,505 was only slightly above non-interest expense of $1,276,695 for the 2014 comparable period.
The bank has made no provision for loan losses thus far in 2015, following receipt of two large recoveries in the first quarter of 2015. Year to date in 2015 the bank has recorded a net recovery of $134,548. At June 30, 2015, the allowance for loan losses was equal to 1.89% of gross loans and 104% of non-accrual loans.
The bank’s Tier 1 Leverage ratio of 16.13% and Total Capital ratio of 21.63% exceeded the levels needed to be considered “well capitalized” at June 30, 2015.
The Company also announced that it was suspending the payment of cash dividends for the time being. The payment and amount of any future dividends will be determined by the Board of Directors on the basis of Company’s financial condition, earnings and other factors.
President and CEO James S. Young stated, “We are pleased with our bank’s performance this year. Profitability for the year is well ahead of the first six months of 2014, asset quality has improved, and capitalization remains strong.”
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: the impact of a slowdown or recession on our borrowing customers; volatility in the financial markets; changes in general, regional and local economic conditions, and their effect on interest rates; 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.
| FINANCIAL SUMMARY FOR INDIANA BUSINESS BANCORP | ||||
| UNAUDITED | ||||
| As of and for the Three Months Ending June 30 | As of and for the Six Months Ending June 30 | |||
| Operating Data | 2015 | 2014 | 2015 | 2014 |
| Net Interest Income | 663,644 | 663,999 | 1,322,573 | 1,370,278 |
| Provision for Loan Losses | 0 | 0 | 0 | 85,000 |
| Noninterest Income | 112,298 | 61,953 | 281,594 | 147,177 |
| Noninterest Expense | 623,008 | 637,483 | 1,286,505 | 1,276,695 |
| Pre-Tax Net Income | 152,934 | 88,469 | 317,662 | 155,760 |
| Tax Benefit | 37,500 | 50,000 | 75,000 | 100,000 |
| Net Income | 190,434 | 138,469 | 392,662 | 255,760 |
| Per Share Data | ||||
| Net Earnings per share | .11 | .09 | .23 | .16 |
| Weighted Average Shares Outstanding | 1,703,623 | 1,575,214 | 1,676,163 | 1,575,214 |
| As of | |||
| Balance Sheet Data | June 30, 2015 | December 31, 2014 | June 30, 2014 |
| Total Assets | 66,475,861 | 72,354,558 | 65,386,089 |
| Total Loans | 52,174,322 | 54,598,750 | 53,288,934 |
| Allowance for Loan Losses | 984,095 | 849,547 | 1,042,529 |
| Investment Securities | 8,576,275 | 8,797,289 | 8,970,469 |
| Total Deposits | 44,992,475 | 49,158,647 | 46,304,949 |
| Total Shareholders’ Equity | 11,355,368 | 11,045,004 | 10,545,858 |