GNADENHUTTEN, Ohio, Nov. 16, 2007 (PRIME NEWSWIRE) -- Indian Village Bancorp, Inc. (OTCBB:IDVB), (the "Company"), the holding company for and sole shareholder of Indian Village Community Bank, an Ohio savings bank (the "Bank"), today reported results for the three months ended September 30, 2007.
Net income (loss) for the three months ended September 30, 2007 totaled $(148,000) compared to net income of $16,000 for the same period in 2006, a decrease of $164,000. Basic and diluted earnings (loss) per share were $(0.35) for the three months ended September 30, 2007. Basic and diluted earnings per share were $0.04 for the three months ended September 30, 2006.
Net interest income after the provision for loan losses for the three months ended September 30, 2007 totaled $285,000 as compared to $486,000 for the same period in 2006, a decrease of $201,000, or 41.4%. Total interest income was $1.4 million for the three months ended September 30, 2007, a $233,000 decrease from the same three months period in 2006. Total interest income decreased primarily because of a decrease in average interest-earning assets. Interest expense for the three months ended September 30, 2007 was $969,000, a $152,000 decrease from the same period one year prior. Interest expense increased due to a decrease in average interest-bearing liabilities offset by an increase in interest rates. The provision for loan losses for the three months ended September 30, 2007 was $156,000 compared to $36,000 in September 30, 2006, an increase of $120,000. The provision for loan losses was increased due to the increase in adversely classified loans.
Non-interest income for the three months ended September 30, 2007 was $104,000, compared to $55,000 for the same period in 2006, an increase of $49,000. The increase in non-interest income is primarily attributable to a decrease in the loss on sales of securities available for sale and an increase in the gain on sale of loans. Non-interest expense for the three months ended September 30, 2007 was $537,000, a $12,000 decrease from the same period in 2006. The primary factor contributing to the decrease in non-interest expense was the decrease in salaries and employee benefits. The income tax (benefit) for the three months ended September 30, 2007 was $0 compared to $(24,000) for the same period in 2006.
At September 30, 2007 total assets were $97.6 million compared to $99.7 million at June 30, 2007, a decrease of $2.1 million, or 2.1%. Securities available for sale decreased to $18.0 million at September 30, 2007 from $18.2 million at June 30, 2007, a decrease of $246,000, or 1.3%. Net loans receivable decreased to $68.8 million at September 30, 2007 from $70.8 million at June 30, 2007, a decrease of $2.0 million, or 2.8%. The decrease in net loans receivable consists primarily of a decrease in one-to-four family real estate loans. Deposits decreased to $66.3 million at September 30, 2007 from $68.0 million at June 30, 2007, a decrease of $1.7 million, or 2.5%. The decrease in total deposits consists primarily of a decrease in certificate of deposits. Borrowings from the FHLB totaled $23.0 million at September 30, 2007, compared to $23.4 million at June 30, 2007, a decrease of $376,000, or 1.6%.
Non-performing assets were $2.8 million, consisting of $2.5 million of nonaccrual loans and $314,000 of other real estate owned at September 30, 2007, or 2.9% of total assets, an increase of $359,000 from June 30, 2007. The nonaccrual loans consisted of $1.7 million in commercial real-estate loans, $796,000 in residential real-estate loans, and $39,000 in consumer loans. The allowance for loan losses totaled $1.0 million at September 30, 2007, representing 35.7% of nonaccrual loans and 1.45% of gross loans receivable. At June 30, 2007 the allowance for loan losses totaled $881,000 and represented 41.2% of nonaccrual loans and 1.22% of gross loans receivable.
Total equity was $7.8 million at September 30, 2007, a $10,000 increase from June 30, 2007. The increase in equity is primarily the result of an increase in market value of securities available for sale offset by the net loss for the period. At September 30, 2007 book value per share was $18.79. At September 30, 2007, the Bank exceeded all regulatory capital requirements to be categorized as "well capitalized" under applicable law and regulations.
This press release contains certain forward-looking statements within the meaning of the federal securities laws. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Reform Act of 1995, and is including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or actual effect of future plans or strategies is inherently uncertain. Factors which could have a material effect on the operations of the Company and the subsidiaries include, but are not limited to, changes in: interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area and accounting principles and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Except as required by law or regulation, the Company disclaims any obligation to update such forward-looking statements.
Indian Village Bancorp, Inc. is headquartered at 100 South Walnut Street, Gnadenhutten, Ohio 44629. The Bank operates out of that location as well as two branch offices located in New Philadelphia and North Canton, Ohio.
Selected Financial Condition and Operating Data
(Dollars in thousands except per share data)
(Unaudited)
September 30, June 30,
2007 2007
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Total Assets $ 97,610 $ 99,712
Loans receivable, net 68,805 70,812
Securities available for sale 17,977 18,223
Deposits 66,264 67,950
Total borrowings 23,047 23,423
Total equity 7,849 7,839
Book value per share $ 18.79 (1) $ 18.84 (1)
Common shares outstanding 437,996 437,432
Three Months Ended
September 30, September 30,
2007 2006
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Interest Income $ 1,410 $ 1,643
Interest Expense 969 1,121
Provision for loan losses 156 36
Net interest income 285 486
Non-interest income 104 55
Non-interest expense 537 549
Income before taxes (148) (8)
Income tax expense -- (24)
Net income (148) 16
Earnings per share (basic) $ (0.35) $ 0.04
Earnings per share (diluted) $ (0.35) $ 0.04
(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.