INDIANAPOLIS, April 28, 2015 (GLOBE NEWSWIRE) -- Indiana Business Bancorp (OTCQB:IBBI), the holding company for Indiana Business Bank, announced results for the three months ended March 31, 2015 and its quarterly cash dividend.
The company recorded a profit of $202,135, or $0.12 per share, for the first quarter of 2015. This compares favorably to a profit of $117,294, or $0.07 per share, for the first quarter of 2014. Net income for the first quarter of 2015 included recognition of a $37,500 tax benefit from the carryover of net operating losses, which was less than the $50,000 tax benefit recognized in 2014. The increased profitability was a result of increased non-interest income and a decrease in provision expense. Increased gains on the sale of government guaranteed loans contributed to the increase in non-interest income, which increased from $85,224 in the first quarter of 2014 to $169,296 in the first quarter of this year. In addition to the continuing overall credit quality improvements, the Bank recognized a net recovery of $238,563 during the first quarter of 2015. The Bank recorded no provision expense in the first quarter of 2015, compared to an $85,000 expense in the same quarter of last year.
Non-interest expense was $663,590 for the quarter ended March 31, 2015 compared to $639,209 for the same quarter of 2014. The increased expense was driven by higher salaries and benefits costs. Salaries rose as a result of staffing increases and merit raises for existing personnel. Benefits increased primarily due to increased health insurance costs.
The Bank's Tier I Capital Ratio of 20.81% and Total Capital Ratio of 22.07% exceeded the levels needed to be considered "well capitalized" at March 31, 2015. The allowance for loan losses at the same date was $1,088,110, or 2.08% of total loans.
Dividend Declared
The Company also announced that the Board of Directors has declared a dividend of $0.02 per share of common stock, payable on May 18, 2015 to shareholders of record at the close of business on May 8, 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.
President and CEO James S. Young stated, "The year has started off very strong for our Bank and we are optimistic we will attain our 2015 goals. Credit quality continues to strengthen and we are pursuing a number of new business opportunities." He also added, "We are pleased to once again pay a cash dividend to our shareholders."
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 March 31 | ||
| Operating Data | 2015 | 2014 |
| Net Interest Income | 658,929 | 706,279 |
| Provision for Loan Losses | -0- | 85,000 |
| Non-interest Income | 169,296 | 85,224 |
| Non-interest Expense | 663,590 | 639,209 |
| Pre Tax Net Income | 164,635 | 67,294 |
| Def Tax Benefit | 37,500 | 50,000 |
| After Tax Net Income | 202,135 | 117,294 |
| Per Share Data | ||
| Net Earnings – Basic | 0.12 | 0.07 |
| Weighted Average Shares Outstanding | 1,686,252 | 1,671,185 |
| As of | |||
| Balance Sheet Data | March 31, 2015 | December 31, 2014 | March 31, 2014 |
| Total Assets | 66,181,700 | 72,354,558 | 66,471,548 |
| Gross Loans | 52,306,881 | 54,598,750 | 52,371,670 |
| Allowance for Loan Losses | 1,088,110 | 849,547 | 989,376 |
| Investment Securities | 9,230,998 | 8,797,289 | 9,031,628 |
| Total Deposits | 47,330,525 | 49,158,647 | 47,559,674 |
| Total Shareholders' Equity | 11,216,571 | 11,045,004 | 10,399,775 |
FOR FURTHER INFORMATION: Gregory Gault Executive Vice President 317-218-2181
