Indian Village Bancorp, Inc. Announces Third Quarter 1999 Earnings

Business Wire, Nov 5, 1999

GNADENHUTTEN, Ohio--(BUSINESS WIRE)--Nov. 5, 1999--

Indian Village Bancorp, Inc. (OTCBB:IDVB), the holding company for Indian Village Community Bank, today reported results for the three month and nine month periods ended September 30, 1999.

The Bank converted from the mutual to the stock form of organization on July 1, 1999.

Net income for the three months ended September 30, 1999 totaled $117,000 compared to net income of $49,000 for the same period in 1998, an increase of $68,000, or 138.8%. Net income for the nine months ended September 30, 1999 was $278,000 compared to $220,000 for the nine months ended September 30, 1998, an increase of $58,000, or 26.4%. The increase in net income for both periods ended September 30, 1999 as compared to the same periods in 1998 was primarily attributable to increases in the Bank's loan and securities portfolio and an increase in noninterest income, partially offset by an increase in noninterest expense. Earnings per share for the three months and nine months ended September 30, 1999 was $0.29. Earnings per share is not applicable for the three and nine months ended September 30, 1998, because prior to July 1, 1999, the Bank was a mutual institution.

Net interest income after the provision for loan losses for the third quarter of 1999 totaled $445,000 as compared to $311,000 for the same period in 1998, an increase of $134,000, or 43.1%. Net interest income after the provision for loan losses for the first nine months of 1999 totaled $1.2 million as compared to $1.0 million for the same period in 1998, an increase of $151,000, or 15.1%. Total interest income was $939,000 for the three months ended September 30, 1999, a $179,000 increase from the same three month period in 1998. Total interest income for the nine months ended September 30, 1999 was $2.5 million, a $279,000 increase from the nine months ended September 30, 1998. Interest expense for the three months ended September 30, 1999 was $489,000, a $63,000 increase from the same period one year prior. Interest expense for the nine months ended September 30, 1999 totaled $1.4 million, a $141,000 increase from the same nine month period in 1998. The increase in interest income and interest expense for the three month and nine month periods is primarily attributable to the growth in the Bank's loan and securities portfolio, primarily funded by borrowings from the FHLB and stock conversion proceeds.

Non-interest income for the third quarter of 1999 was $8,000, a $3,000 increase from the third quarter of 1998. For the nine months ended September 30, 1999 non-interest income was $35,000, a $22,000 increase from the same nine month period in 1998. The increase in non-interest income in the three and nine month periods was primarily related to the recording of gains on sale of securities, opposed to losses incurred on the sale of securities in the prior periods, and an increase in service fee income.

Non-interest expense for the third quarter of 1999 was $276,000, compared to $233,000 in the third quarter in 1998, an increase of $43,000, or 18.5%. Non-interest expense for the nine months ended September 30, 1999 was $765,000, compared to $674,000 for the same period in 1998, an increase of $91,000, or 13.5%. The primary factors contributing to the increase in non-interest expense in each of the periods was an increase in stationary and printing expense attributable to the Bank's name change in early 1999, increased staffing and increased advertising expense due to several product introductions. The third quarter increases in 1999 as compared to 1998 were further attributable increased costs resulting from the increased regulatory reporting obligations the Company, as a public company, now faces.

At September 30, 1999 total assets were $54.2 million compared to $40.0 million at December 31, 1998, an increase of $14.2 million, or 35.5%. Net loans receivable increased to $36.1 million at September 30, 1999 from $31.3 million at December 31, 1998, an increase of $4.9 million, or 15.6%. Deposits decreased to $29.6 million at September 30, 1999 from $30.9 million at December 31, 1998. Borrowings from the FHLB totaled $15.5 million at September 30, 1999, compared to $4.0 million at December 31, 1998, an increase of $11.5 million, or 287.5%. The increased FHLB borrowings were primarily used to fund loan growth and securities investments.

Non-performing assets, consisting of $141,000 in repossessed assets, and real estate owned, and $124,000 in loans delinquent 90 days or more, totaled $265,000 at September 30, 1999, or 0.5% of total assets, a decrease of $209,000 from December 31, 1998. The allowance for loan losses totaled $229,000 at September 30, 1999, representing 184.7% of loans delinquent 90 days or more and 0.6% of gross loans receivable. At December 31, 1998 the allowance for loan losses totaled $218,000. and represented 66.5% of loans delinquent 90 days or more and 0.7% of gross loans receivable.

Total equity at September 30, 1999 was $9.0 million compared to $5.1 million at December 31, 1998. The increase in total equity was primarily attributable to net conversion proceeds, after the establishment of an Employee Stock Ownership Plan, of $3.7 million. At September 30, 1999, book value per share was $20.11. At September 30, 1999, the Bank significantly exceeded all regulatory capital requirements.