Indian Village Bancorp, Inc. Announces Earnings for the Three and Nine Months Ended March 31, 2001

Business Wire, April 19, 2001

Business Editors

GNADENHUTTEN, Ohio--(BUSINESS WIRE)--April 19, 2001

Indian Village Bancorp, Inc. (OTCBB:IDVB), the holding company for Indian Village Community Bank, today reported results for the three and nine month period ended March 31, 2001.

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

Net income for the three months ended March 31, 2001 totaled $115,000 compared to $63,000 for the same period in 2000, an increase of $52,000, or 82.5%. Net income for the nine months ended March 31, 2001 was $226,000 compared to $190,000 for the nine months ended March 31, 2000 an increase of $36,000, or 18.9%. Earnings per share were $0.31 and $0.15 for the three months ended March 31, 2001 and March 31, 2000, respectively. Earnings per share were $0.60 and $0.46 for the nine months ended March 31, 2001 and March 31, 2000, respectively.

Net interest income after the provision for loan losses for the three months ended March 31, 2001 totaled $438,000 as compared to $457,000 for the same period in 2000, a decrease of $19,000, or 4.2%. Net interest income after the provision for loan losses for the nine months ended March 31, 2001 totaled $1.3 million compared to $1.4 for the same period in 2000. Total interest income was $1.3 million for the three months ended March 31, 2001, a $180,000 increase from the same three months period in 2000. Total interest income for the nine months ended March 31, 2001 was $3.8 million an increase of $692,000, or 22.1%. Interest expense for the three months ended March 31, 2001 was $859,000, a $194,000 increase from the same period one year prior. Interest expense for the nine months ended March 31, 2001 totaled $2.5 million, a $752,000 increase for the same period in 2000. The increase in interest income and interest expense for the comparative nine months periods is primarily attributable to the growth in the Bank's loan and securities portfolio, primarily funded by borrowings from the FHLB, deposit increases associated with the opening of the New Philadelphia branch office in November 1999, and the stock conversion proceeds.

Non-interest income for the three months ended March 31, 2001 was $113,000, compared to $12,000 for the same period in 2000, an increase of $101,000. For the nine months ended March 31, 2001, non-interest income was $168,000, an increase of $141,000 for the same period in 2000. The primary reasons for the increase in non-interest income is an increase in service charges on deposit accounts associated with the opening of the New Philadelphia branch and an increase in gains on securities available-for-sale. Non-interest expense for the three months ended March 31, 2001 was $376,000, compared to $369,000 in the same period in 2000, an increase of $7,000, or 1.9%. Non-interest expense for the nine months ended March 31, 2001 was $1,147,000, compared to $1,077,000 in 2000, an increase of $70,000, or 6.5%. The primary factors contributing to the increase in non-interest expense for the comparative nine months periods were increased staffing and occupancy expense due to the opening of the New Philadelphia branch, as well as the expense associated with being a publicly traded stock company.

At March 31, 2001 total assets were $74.4 million compared to $65.6 million at June 30, 2000, an increase of $8.8 million, or 13.4%. Net loans receivable increased to $46.7 million at March 31, 2001 from $40.8 million at June 30, 2000, an increase of $5.9 million, or 14.5%. The increase in net loans receivable consists primarily of an increase in residential loans. Deposits increased to $43.0 million at March 31, 2001 from $36.6 million at June 30, 2000, an increase of $6.4 million. The increase in total deposits consists primarily of an increase to certificates of deposit and money market accounts. Borrowings from the FHLB totaled $22.9 million at March 31, 2001, compared to $20.3 million at June 30, 2000, an increase of $2.6 million, or 12.8%.

Non-performing assets, consisting of $126,000 in repossessed assets and real estate owned and $650,000 of nonaccrual loans, totaled $776,000 at March 31, 2001, or 1.0% of total assets, an increase of $205,000 from June 30, 2000. The nonaccrual loans consist of $387,000 of residential loans and $263,000 of consumer loans. The allowance for loan losses totaled $241,000 at March 31, 2001, representing 37.1% of nonaccrual loans and 0.51% of gross loans receivable. At June 30, 2000 the allowance for loan losses totaled $237,000 and represented 72.5% of nonaccrual loans and 0.58% of gross loans receivable.

Total equity at March 31, 2001 was $8.1 million, compared to $8.7 million at June 30, 2000. Equity decreased primarily due to the $2.00 per share cash distribution paid to shareholders on September 29, 2000. At December 31, 2000 book value per share was $22.29. At March 31, 2001, the Bank exceeded all regulatory capital requirements.

Indian Village Bancorp, Inc. is headquartered at 100 South Walnut Street, Gnadenhutten, Ohio 44629.