Indian Village Bancorp, Inc. Announces Earnings for the Three Months and Year Ended June 30, 2001

Business Wire, July 26, 2001

Business Editors

GNADENHUTTEN, Ohio--(BUSINESS WIRE)--July 26, 2001

Indian Village Bancorp, Inc. (OTCBB:IDVB), the holding company for Indian Village Community Bank, today reported results for the three months and year ended June 30, 2001.

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

Net income for the three months ended June 30, 2001 totaled $112,000 compared to $68,000 for the same period in 2000, an increase of $44,000, or 64.7%. Net income for the year ended June 30, 2001 was $338,000 compared to $258,000 for the year ended June 30, 2000, an increase of $80,000, or 31.0%. Earnings per share were $0.30 and $0.17 for the three months ended June 30, 2001 and June 30, 2000, respectively. Earnings per share were $0.90 and $0.63 for the year ended June 30, 2001 and June 30, 2000, respectively.

Net interest income after the provision for loan losses for the three months ended June 30, 2001 totaled $365,000 as compared to $481,000 for the same period in 2000, a decrease of $116,000, or 24.1%. Net interest income after the provision for loan losses for the year ended June 30, 2001 totaled $1.7 million compared to $1.9 million for the same period in 2000. Total interest income was $1.3 million for the three months ended June 30, 2001, a $36,000 increase from the same three months period in 2000. Total interest income for the year ended June 30, 2001 was $5.1 million, an increase of $728,000, or 16.7%. Interest expense for the three months ended June 30, 2001 was $876,000, a $144,000 increase from the same period one year prior. Interest expense for the year ended June 30, 2001 totaled $3.4 million, a $896,000 increase from the same period in 2000. The increase in interest income and interest expense for the comparative year end 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 stock conversion proceeds.

Non-interest income for the three months ended June 30, 2001 was $115,000, compared to $16,000 for the same period in 2000, an increase of $99,000. For the year ended June 30, 2001, non-interest income was $283,000, an increase of $240,000 for the same period in 2000. The primary reasons for the increase in non-interest income was 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 June 30, 2001 was $405,000, compared to $459,000 in the same period in 2000, an decrease of $54,000, or 11.8%. Non-interest expense for the year ended June 30, 2001 was $1.6 million, compared to $1.5 million in 2000, an increase of $16,000, or 1.0%. The primary factors contributing to the increase in non-interest expense for the comparative year end was 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 which was offset by Management's commitment to decreasing overhead expenses.

At June 30, 2001 total assets were $74.2 million compared to $65.6 million at June 30, 2000, an increase of $8.6 million, or 13.1%. Net loans receivable increased to $48.3 million at June 30, 2001 from $40.8 million at June 30, 2000, an increase of $7.5 million, or 18.4%. The increase in net loans receivable consists primarily of an increase in residential loans. Deposits increased to $44.6 million at June 30, 2001 from $36.6 million at June 30, 2000, an increase of $8.0 million. The increase in total deposits consists primarily of an increase to certificates of deposit and money market accounts. Borrowings from the FHLB totaled $21.2 million at June 30, 2001, compared to $20.3 million at June 30, 2000, an increase of $950,000, or 4.7%.

Non-performing assets, consisting of $70,000 in repossessed assets and real estate owned and $943,000 of nonaccrual loans, totaled $1,013,000 at June 30, 2001, or 1.37% of total assets, an increase of $568,000 from June 30, 2000. The nonaccrual loans consist of $763,000 of residential loans and $180,000 of consumer loans. The allowance for loan losses totaled $253,000 at June 30, 2001, representing 26.8% of nonaccrual loans and 0.52% 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 June 30, 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 June 30, 2001 book value per share was $22.22. At June 30, 2001, the Bank exceeded all regulatory capital requirements.

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

            Selected Financial Condition and Operating Data
             (Dollars in thousands except per share data)
                              (Unaudited)

                                 June 30,          June 30,
                                   2001              2000
                              -------------------------------

Total Assets                    $ 74,217            $ 65,644
Loans receivable, net             48,289              40,799
Investment Securities             17,014              20,061
Deposits                          44,617              36,586
Total borrowings                  21,200              20,250
Total equity                       8,127               8,657
Book value per share            $  22.22 (1)        $  22.20 (1)
Common shares outstanding        402,139             423,304


                        Three Months Ended       Twelve Months Ended
                       June 30,     June 30,     June 30,    June 30,
                         2001         2000         2001        2000
                       --------------------      -------------------

Interest Income        $ 1,253      $ 1,217      $ 5,079     $ 4,351
Interest Expense           876          732        3,378       2,482
Provision for loan
 losses                     12            4           32          13
Net interest income
 after provision for
 loan losses               365          481        1,669       1,856
Non-interest income        115           16          283          43
Non-interest expense       405          459        1,552       1,536
Income before taxes         75           38          400         363
Income tax expense         (37)         (30)          62         105
Net income (benefit)       112           68          338         258
Earnings per share     $  0.30      $  0.17      $  0.90     $  0.63


(1) Represents total equity divided by outstanding number of common
    shares at each respective period end. ESOP shares are considered
    outstanding for this calculation unless unearned.