Indian Village Bancorp, Inc. Announces Earnings for the Three Months and Year Ended June 30, 2005


GNADENHUTTEN, Ohio, July 22, 2005 (PRIMEZONE) -- Indian Village Bancorp, Inc. (OTCBB:IDVB), the holding company for Indian Village Community Bank, today reported results for the three months and twelve months ended June 30, 2005.

Net income for the three months ended June 30, 2005 totaled $89,000 compared to net income of $57,000 for the same period in 2004, an increase of $32,000. Net income was $23,000 for the year ended June 30, 2005 compared to net income of $358,000 for the year ended June 30, 2004, a decrease of $335,000. Earnings per share for the period ending June 30, 2004 have been restated to reflect the 10% stock dividend paid to shareholders on January 6, 2005. Basic and diluted earnings per share were $0.24 and $0.14 for the three months ended June 30, 2005 and June 30, 2004, respectively. Basic earnings per share were $0.06 and $0.97 for the year ended June 30, 2005 and June 30, 2004, respectively. Diluted earnings per share were $0.06 and $0.96 for the year ended June 30, 2005 and June 30, 2004, respectively.

Net income for the year ended June 30, 2005 excluding the securities impairment charge recorded in the 3rd quarter totaled $303,000 compared to net income of $358,000 for the year ended June 30, 2004, a decrease of $55,000, or 15.4%. Basic earnings per share excluding the impairment charge was $0.82 for the year ended June 30, 2005. Diluted earnings per share excluding the impairment charge was $0.81 for the year ended June 30, 2005.

Net interest income after the provision for loan losses for the three months ended June 30, 2005 totaled $538,000 as compared to $526,000 for the same period in 2004, an increase of $12,000, or 2.3%. Net interest income after the provision for loan losses totaled $2.1 million for the year ended June 30, 2005, a $129,000 increase from the same period in 2004. Total interest income was $1.3 million for the three months ended June 30, 2005, a $10,000 increase from the same three months period in 2004. Total interest income was $5.3 million for the year ended June 30, 2005, a $108,000 increase from the same twelve month period in 2004. Total interest income increased primarily because of a shift in interest-earning assets from securities available for sale to higher yielding loans. Interest expense for the three months ended June 30, 2005 was $757,000, a $2,000 increase from the same period one year prior. Interest expense for the year ended June 30, 2005 was $3.0 million, a $8,000 decrease from the same period in 2004. Interest expense decreased due to a decrease in borrowings offset by an increase in deposits. The provision for loan losses for the three months ended June 30, 2005 was $29,000 compared to $33,000 for June 30, 2004. The provision for loan losses for the year ended June 30, 2005 was $120,000 compared to $133,000, a decrease of $13,000, or 9.8%.

Non-interest income for the three months ended June 30, 2005 was $49,000, compared to $29,000 for the same period in 2004, an increase of $20,000. For the year ended June 30, 2005, non-interest income (loss) was $(103,000) a decrease of $350,000 from the same period in 2004. The decrease in non-interest income was primarily attributed to the impairment charge and a decrease in realized gains on sales of securities. Non-interest expense for the three months ended June 30, 2005 was $484,000, a $17,000 decrease from the same period in 2004. Non-interest expense for the year ended June 30, 2005 was $2.0 million, an $97,000, or 5.2% increase from the same period in 2004. The primary factors contributing to the increase in non-interest expense was the increase in occupancy and equipment, salaries and employee benefits, and data processing and other expenses. Other expenses primarily increased due to several ongoing projects the Bank is undertaking to improve customer service, including offering check imaging to our customers, changing our debit card/ATM processing and offering a fully operational web-site to our customers.

At June 30, 2005 total assets were $97.4 million compared to $99.6 million at June 30, 2004, a decrease of $2.3 million, or 2.3%. Securities available for sale decreased to $23.9 million at June 30, 2005 from $37.3 million at June 30, 2004, a decrease of $13.4 million, or 35.8%. Net loans receivable increased to $64.3 million at June 30, 2005 from $53.9 million at June 30, 2004, an increase of $10.4 million, or 19.3%. The increase in net loans receivable consists primarily of an increase in residential and consumer loans. Deposits increased to $61.8 million at June 30, 2005 from $60.5 million at June 30, 2004, an increase of $1.2 million, or 2.1%. The increase in total deposits consists primarily of an increase to certificates of deposit offset by a decrease in non-interest bearing demand deposit accounts. Borrowings from the FHLB totaled $26.6 million at June 30, 2005, compared to $30.5 million at June 30, 2004, a decrease of $3.9 million, or 12.9%. Non-performing assets consisted of $141,000 of nonaccrual loans at June 30, 2005, or 0.1% of total assets, a decrease of $444,000 from June 30, 2004. The nonaccrual loans consisted of $128,000 in commercial real-estate loans and $13,000 in consumer loans. The allowance for loan losses totaled $294,000 at June 30, 2005, representing 208.5% of nonaccrual loans and 0.45% of gross loans receivable. At June 30, 2004 the allowance for loan losses totaled $237,000 and represented 40.5% of nonaccrual loans and 0.44% of gross loans receivable.

Total equity was $8.4 million at June 30, 2005, compared to $7.4 million at June 30, 2004. The increase in equity was the result of an increase in accumulated other comprehensive income. At June 30, 2005 book value per share was $20.42. At June 30, 2005, 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.



       Selected Financial Condition and Operating Data
        (Dollars in thousands except per share data)
                       (Unaudited)                            
                                                             
                                    June 30,      June 30,   
                                      2005          2004     
                                    -------------------------
 Total Assets                       $ 97,358      $ 99,644   
 Loans receivable, net                64,308        53,915   
 Securities available for sale        23,928        37,288   
 Deposits                             61,783        60,541   
 Total borrowings                     26,593        30,542   
 Total equity                          8,364         7,422   
 Book value per share               $  20.42(a)   $  20.32(a)
 Common shares outstanding           436,547       392,755   


                             Three Months Ended  Twelve Months Ended
                              June 30,  June 30,  June 30,  June 30, 
                                2005      2004      2005      2004   
                               ----------------    ----------------
 Interest Income               $1,324    $1,314    $5,254    $5,146  
 Interest Expense                 757       755     3,022     3,030  
 Provision for loan losses         29        33       120       133  
 Net interest income              538       526     2,112     1,983  
 Non-interest income (loss)        49        29      (103)      247  
 Non-interest expense             484       501     1,968     1,871  
 Income before taxes              103        54        41       359  
 Income tax expense (benefit)      14        (3)       18         1  
 Net income                        89        57        23       358  
 Earnings per share (basic)    $ 0.24    $ 0.14    $ 0.06    $ 0.97  
 Earnings per share (diluted)  $ 0.24    $ 0.14    $ 0.06    $ 0.96  

       (a)  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.                                        


            

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