GNADENHUTTEN, Ohio, Feb. 5, 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 and six months ended December 31, 2006.
Net income (loss) for the three months ended December 31, 2006 totaled $(205,000) compared to net income (loss) of $(5,000) for the same period in 2005, a decrease of $200,000. Net income (loss) was $(189,000) for the six months ended December 31, 2006 compared to $47,000 for the six months ended December 31, 2005. Basic and diluted earnings (loss) per share were $(0.49) for the three months ended December 31, 2006. Basic and diluted earnings (loss) per share were $(0.01) for the three months ended December 31, 2005. Basic earnings (loss) per share were $(0.45) and $0.12 for the six months ended December 31, 2006 and December 31, 2005, respectively. Diluted earnings (loss) per share were $(0.45) and $0.11 for the six months ended December 31, 2005, respectively.
Net interest income after the provision for loan losses for the three months ended December 31, 2006 totaled $184,000 as compared to $509,000 for the same period in 2005, a decrease of $325,000, or 63.9%. Net interest income after the provision for loan losses totaled $670,000 for the six months ended December 31, 2006, a $289,000 decrease from the same period in 2005. Total interest income was $1.6 million for the three months ended December 31, 2006, a $269,000 increase from the same three months period in 2005. Total interest income was $3.3 million for the six months ended December 31, 2006, a $645,000 increase from the same six month period in 2005. Total interest income increased primarily because of an increase in average interest-earning assets and an increase in yield on loans. Interest expense for the three months ended December 31, 2006 was $1.1 million, a $286,000 increase from the same period one year prior. Interest expense for the six months ended December 31, 2006 was $2.2 million, a $620,000 increase from the same period in 2005. Interest expense increased due to an increase in average interest-bearing liabilities and an increase in interest rates. The provision for loan losses for the three months ended December 31, 2006 was $338,000 compared to $30,000 for the three months ended December 31, 2005. The provision for loan losses for the six months ended December 31, 2006 was $374,000, a $314,000 increase from the same six month period in 2005. The provision for loan losses was increased due to the increase in adversely classified loans as well as an increase in net loans, specifically commercial real estate.
Non-interest income for the three months ended December 31, 2006 was $103,000, compared to $70,000 for the same period in 2005, an increase of $33,000. For the six months ended December 31, 2006, non-interest income was $158,000, a decrease of $46,000 from the same period in 2005. For the six months period, the decrease in non-interest income is primarily attributable to an increase in the loss on sales of securities available for sale and a decrease in the gain on sale of loans. Non-interest expense for the three months ended December 31, 2006 was $626,000, a $33,000 increase from the same period in 2005. Non-interest expense for the six months ended December 31, 2006 was $1.2 million, a $55,000, or 4.9% increase from the same period in 2005. The primary factors contributing to the increase in non-interest expense was the increase in professional and consulting fees and salaries and employee benefits. The salaries and employee benefit increases are attributed to additional staffing needs at the North Canton office of the Bank. The income tax (benefit) for the three months ended December 31, 2006 was $(134,000) compared to $(9,000) for the same period in 2005. The income tax (benefit) for the six months ended December 31, 2006 was $(158,000) compared to $(4,000) for the same period in 2005. The income tax (benefit) is attributed to significant net operating losses and tax-exempt interest income.
At December 31, 2006 total assets were $108.3 million compared to $113.8 million at June 30, 2006, a decrease of $5.5 million, or 4.9%. Securities available for sale decreased to $22.4 million at December 31, 2006 from $26.4 million at June 30, 2006, a decrease of $4.0 million, or 15.2%. Net loans receivable decreased to $76.3 million at December 31, 2006 from $77.3 million at June 30, 2006, a decrease of $965,000, or 1.2%. The decrease in net loans receivable consists primarily of a decrease in commercial real estate loans and 1-4 family residential loans. Deposits decreased to $75.7 million at December 31, 2006 from $79.4 million at June 30, 2006, a decrease of $3.7 million, or 4.7%. The decrease in total deposits consists primarily of a decrease in certificates of deposit and money market accounts. Borrowings from the FHLB totaled $24.1 million at December 31, 2006, compared to $26.1 million at June 30, 2006, a decrease of $2.0 million, or 7.8%.
Non-performing assets were $1.8 million, consisting of $1.7 million of nonaccrual loans and $150,000 of other real estate owned at December 31, 2006, or 1.7% of total assets, an increase of $840,000 from June 30, 2006. The nonaccrual loans consisted of $1.2 million in commercial real estate loans, $275,000 in real estate loans, and $226,000 in consumer loans. The allowance for loan losses totaled $822,000 at December 31, 2006, representing 48.4% of nonaccrual loans and 1.07% of gross loans receivable. At June 30, 2006 the allowance for loan losses totaled $572,000 and represented 67.5% of nonaccrual loans and 0.74% of gross loans receivable.
Total equity was $8.1 million at December 31, 2006 and $7.9 million at June 30, 2006. The increase in equity is the result of an increase in market value of securities available for sale offset by a decrease in earnings. At December 31, 2006 book value per share was $19.63. At December 31, 2006, 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)
December 31, June 30,
2006 2006
-------------------------
Total Assets $ 108,262 $ 113,787
Loans
receivable,
net 76,285 77,250
Securities
available
for sale 22,402 26,414
Deposits 75,665 79,365
Total
borrowings 24,110 26,141
Total equity 8,147 7,903
Book value
per share $ 19.63(a) $ 19.14(a)
Common shares
outstanding 437,432 437,437
Three Months Ended Six Months Ended
December 31, December 31, December 31, December 31,
2006 2005 2006 2005
---------------------------------------------------
Interest
Income $ 1,630 $ 1,361 $ 3,273 $ 2,628
Interest
Expense 1,108 822 2,229 1,609
Provision for
loan losses 338 30 374 60
Net interest
income 184 509 670 959
Non-interest
income 103 70 158 204
Non-interest
expense 626 593 1,175 1,120
Income (loss)
before taxes (339) (14) (347) 43
Income tax
expense
(benefit) (134) (9) (158) (4)
Net income
(loss) (205) (5) (189) 47
Earnings
(loss) per
share (basic) $ (0.49) $ (0.01) $ (0.45) $ 0.12
Earnings
(loss) per
share
(diluted) $ (0.49) $ (0.01) $ (0.45) $ 0.11
(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.