INDIANAPOLIS, Jan. 23, 2015 (GLOBE NEWSWIRE) -- Indiana Business Bancorp (OTCQB:IBBI), the holding company for Indiana Business Bank, announced results for the quarter and year ended December 31, 2014.
The Company recorded a profit of $310,788 or $0.19 per share and $787,664 or $0.49 per share for the quarter and year ended December 31, 2014, respectively. Net income in both time periods includes recognition of a tax benefit in the amount of $100,000 for the quarter and $250,000 for the year from the carryover of net operating losses. Full year net income for 2014 represents an 8.8% improvement over 2013 results.
Net interest income in the most recent quarter includes $53,321 in interest income recognized on notes previously carried in non-accrual. Non-interest income for the year was $390,598 compared to $374,338 in 2013. Non-interest income in 2013 was negatively affected by $132,642 in write downs and loss on sale of property reported as Other Real Estate Owned (OREO). Non-interest income in 2014 had no similar charges.
Non-interest expense (generally salaries and other operating expenses) increased 4.8% compared to the previous year. The increase was driven by an increase in staffing levels and merit salary adjustments.
The provision for loan loss declined from $240,000 during 2013 to $115,000 during 2014. The reduced provision expense for 2014 reflects the general improvement in credit quality as well as the positive resolution of four troubled borrower situations during the year. At December 31, 2014, the allowance for loan losses was $849,547, which equates to 1.55% of total loans.
The Bank currently has no OREO property. Non-accrual loans and renegotiated loans dropped 47% to $2,445,807 during 2014.
President and CEO, James S. Young stated, "We are pleased with the strength of our balance sheet and strong capital. We will be highly focused during 2015 to build the balance sheet with quality assets, further leverage our capital, and continue to increase earnings."
At December 31, 2014, the Company's and the Bank's capital exceeded all regulatory required minimums and the Bank was considered "well capitalized".
Dividends Declared
The Company announced that on January 22, 2015, the Board of Directors declared a dividend of $.02 per share of common stock, payable on February 20, 2015 to shareholders of record at the close of business on February 9, 2015. The Company expects to continue paying cash dividends on a quarterly basis; however, the payment and amount of any future dividends will be determined by the Board of Directors on the basis of the Company's financial condition, earnings, regulatory constraints and other factors.
The Company also announced that the Board of Directors authorized a 5% stock dividend. The dividend will be paid by issuing one new share of common stock for each twenty shares owned by shareholders of record on February 9, 2015. The stock dividend will be paid February 20, 2015. No fractional interests will be issued; the number of shares issued to each record shareholder will be rounded up to the nearest whole number.
Mr. Young stated, "The Board of Directors and management believe the institution of quarterly cash dividends will enhance shareholder value and demonstrate our commitment to and confidence in our future prospects. The addition of a stock dividend is intended to improve the liquidity of our shares."
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; 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 Ended December 31 | As of and for the Twelve Months Ended December 31 | |||
| Operating Data | 2014 | 2013 | 2014 | 2013 |
| Net Interest Income | 745,729 | 676,505 | 2,808,295 | 2,786,987 |
| Provision for Loan Losses | 0 | 60,000 | 115,000 | 240,000 |
| Noninterest Income | 79,443 | 52,344 | 390,598 | 374,338 |
| Noninterest Expense | 614,384 | 590,673 | 2,546,229 | 2,447,642 |
| Pre Tax Net Income (Loss) | 210,788 | 78,176 | 537,664 | 473,683 |
| Def Tax Benefit | 100,000 | 100,000 | 250,000 | 250,000 |
| After Tax Net Income (Loss) | 310,788 | 178,176 | 787,664 | 723,683 |
| Per Share Data | ||||
| Net Earnings (Loss) per share | .19 | .12 | .49 | .48 |
| Weighted Average Shares Outstanding | 1,605,836 | 1,518,125 | 1,605,836 | 1,518,125 |
| As of | ||
| Balance Sheet Data | December 31, 2014 | December 31, 2013 |
| Total Assets | 71,802,931 | 68,671,914 |
| Net Loans | 53,749,204 | 54,159,075 |
| Allowance for Loan Losses | 849,547 | 874,370 |
| Investment Securities | 8,797,290 | 8,141,359 |
| Total Deposits | 48,617,783 | 49,661,051 |
| Total Shareholders' Equity | 11,044,274 | 10,418,289 |
At the Company: Gregory Gault Executive Vice President 317-218-2181
