Indian Village Bancorp, Inc. Announces Earnings for the Three Months and Six Months Ended December 31, 2007


GNADENHUTTEN, Ohio, Feb. 8, 2008 (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, 2007.

Net income (loss) for the three months ended December 31, 2007 totaled $(63,000) compared to $(205,000) for the same period in 2006, an improvement of $142,000. Net income (loss) was $(211,000) for the six months ended December 31, 2007 compared to $(189,000) for the six months ended December 31, 2006. Basic earnings (loss) per share and diluted earnings (loss) per share were $(0.15) and $(0.49) for the three months ended December 31, 2007 and December 31, 2006, respectively. Basic earnings (loss) per share and diluted earnings (loss) per share were $(0.50) and $(0.45) for the six months ended December 31, 2007 and December 31, 2006, respectively.

Net interest income after the provision for loan losses for the three months ended December 31, 2007 totaled $418,000 as compared to $184,000 for the same period in 2006, an increase of $234,000. Net interest income after the provision for loan losses totaled $703,000 for the six months ended December 31, 2007, a $33,000 increase from the same period in 2006. Total interest income was $1.4 million for the three months ended December 31, 2007, a $215,000 decrease from the same three months period in 2006. Total interest income was $2.8 million for the six months ended December 31, 2007, a $448,000 decrease from the same six month period in 2006. Total interest income decreased primarily because of the decrease in average balance of loans and securities. Interest expense for the three months ended December 31, 2007 was $931,000, a $177,000 decrease from the same period one year prior. Interest expense for the six months ended December 31, 2007 was $1.9 million, a $329,000 decrease from the same period in 2006. Interest expense decreased primarily due to a decrease in average balance of deposits. The provision for loan losses for the three months ended December 31, 2007 was $66,000 compared to $338,000 for the three months ended December 31, 2006. The provision for loan losses for the six months ended December 31, 2007 was $222,000, a $152,000 increase from the same six month period in 2006. The provision for loan losses was increased due to the increase in adversely classified loans.

Non-interest income for the three months ended December 31, 2007 was $57,000, compared to $103,000 for the same period in 2006, a decrease of $46,000. For the six months ended December 31, 2007, non-interest income was $161,000, an increase of $3,000 from the same period in 2006. For the three months period, the decrease in non-interest income is primarily attributable to an increase in the loss on sales of securities available for sale. Non-interest expense for the three months ended December 31, 2007 was $538,000, a $88,000 decrease from the same period in 2006. Non-interest expense for the six months ended December 31, 2007 was $1.1 million, a $100,000, or 8.5% decrease from the same period in 2006. The primary factors contributing to the decrease in non-interest expense was the decrease in salaries and employee benefits and professional and consulting fees. The income tax (benefit) for the three months ended December 31, 2007 was $0 compared to $(134,000) for the same period in 2006. The income tax (benefit) for the six months ended December 31, 2007 was $0 compared to $(158,000) for the same period in 2006.

At December 31, 2007 total assets were $95.6 million compared to $99.7 million at June 30, 2007, a decrease of $4.1 million, or 4.1%. Securities available for sale decreased to $15.6 million at December 31, 2007 from $18.2 million at June 30, 2007, a decrease of $2.7 million, or 14.6%. Net loans receivable decreased to $66.3 million at December 31, 2007 from $70.8 million at June 30, 2007, a decrease of $4.5 million, or 6.3%. The decrease in net loans receivable consists primarily of a decrease in one-to-four family residential and consumer loans. Deposits decreased to $64.1 million at December 31, 2007 from $68.0 million at June 30, 2007, a decrease of $3.9 million, or 5.7%. The decrease in total deposits consists primarily of a decrease in certificates of deposit and money market accounts. Borrowings from the FHLB totaled $22.7 million at December 31, 2007, compared to $23.4 million at June 30, 2007, a decrease of $678,000, or 2.9%.

Non-performing assets were $2.7 million, consisting of $2.4 million of nonaccrual loans and $375,000 of other real estate owned at December 31, 2007, or 2.82% of total assets, an increase of $259,000 from June 30, 2007. The nonaccrual loans consisted of $1.5 million in commercial real-estate loans, $635,000 in residential real-estate loans, and $228,000 in consumer loans. The allowance for loan losses totaled $976,000 at December 31, 2007, representing 41.3% of nonaccrual loans and 1.44% 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 $7.9 million at December 31, 2007 and $7.8 million at June 30, 2007. The increase in equity is the result of an increase in market value of securities available for sale offset by the net loss for the period. At December 31, 2007 book value per share was $18.93. At December 31, 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)

                                             December 31,  June 30,
                                                 2007        2007
                                              ------------------------

 Total Assets                                  $95,618     $99,712
 Loans receivable, net                          66,339      70,812
 Securities available for sale                  15,556      18,223
 Deposits                                       64,083      67,950
 Total borrowings                               22,745      23,423
 Total equity                                    7,921       7,839
 Book value per share                           $18.93 (a)  $18.84 (a)
 Common shares outstanding                     437,996     437,432



                                     Three Months       Six Months
                                         Ended             Ended
                                    Dec. 31, Dec. 31, Dec. 31, Dec. 31,
                                     2007     2006     2007     2006
                                    ----------------------------------

 Interest Income                    $1,415   $1,630   $2,825   $3,273
 Interest Expense                      931    1,108    1,900    2,229
 Provision for loan losses              66      338      222      374
 Net interest income                   418      184      703      670
 Non-interest income                    57      103      161      158
 Non-interest expense                  538      626    1,075    1,175
 Income (loss) before taxes            (63)    (339)    (211)    (347)
 Income tax expense (benefit)           --     (134)      --     (158)
 Net income (loss)                     (63)    (205)    (211)    (189)
 Earnings (loss) per share
  (basic)                           $(0.15)  $(0.49)  $(0.50)  $(0.45)
 Earnings (loss) per share
  (diluted)                         $(0.15)  $(0.49)  $(0.50)  $(0.45)

 (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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