GNADENHUTTEN, Ohio, Aug. 1, 2006 (PRIMEZONE) -- 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, 2006.
Net loss for the three months ended June 30, 2006 totaled $(21,000) compared to net income of $89,000 for the same period in 2005, a decrease of $110,000. Net income was $84,000 for the year ended June 30, 2006 compared to net income of $23,000 for the year ended June 30, 2005. Basic and diluted earnings (loss) per share were $(0.05) and $0.24 for the three months ended June 30, 2006 and June 30, 2005, respectively. Basic earnings per share were $0.21 and $0.06 for the year ended June 30, 2006 and June 30, 2005, respectively. Diluted earnings per share were $0.20 and $0.05 for the year ended June 30, 2006 and June 30, 2005, respectively.
Net interest income after the provision for loan losses for the three months ended June 30, 2006 totaled $386,000 as compared to $538,000 for the same period in 2005, a decrease of $152,000, or 28.2%. Net interest income after the provision for loan losses totaled $1.9 million for the year ended June 30, 2006, a $168,000 decrease from the same period in 2005. Total interest income was $1.6 million for the three months ended June 30, 2006, a $295,000 increase from the same three months period in 2005. Total interest income was $5.8 million for the year ended June 30, 2006, a $547,000 increase from the same twelve month period in 2005. Total interest income increased primarily because of an increase in average interest-earning assets. Interest expense for the three months ended June 30, 2006 was $1.1 million, a $295,000 increase from the same period one year prior. Interest expense for the year ended June 30, 2006 was $3.6 million, a $564,000 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 June 30, 2006 and June 30, 2005 was $181,000 and $29,000, respectively. The provision for loan losses for the year ended June 30, 2006 was $271,000 and the year ended June 30, 2005 was $120,000. The provision for loan losses was increased due to the increase in net loans, specifically commercial real-estate, as well as an increase in adversely classified loans.
Non-interest income for the three months ended June 30, 2006 was $84,000, compared to $49,000 for the same period in 2005, an increase of $35,000. For the year ended June 30, 2006, non-interest income was $278,000, an increase of $381,000 from the same period in 2005. The increase in non-interest income in the year to year period is attributable to an other-than-temporary non-operating impairment charge of $280,000 related to certain Fannie Mae and Freddie Mac preferred stock recorded in March, 2005. Non-interest expense for the three months ended June 30, 2006 was $539,000, a $55,000 increase from the same period in 2005. Non-interest expense for the year ended June 30, 2006 was $2.2 million, a $253,000, or 12.9% increase from the same period in 2005. The primary factors contributing to the increase in non-interest expense was the increase in salaries and employee benefits and advertising. These expenses are attributed to the opening of the North Canton office in the quarter ended September 30, 2005. The income tax (benefit) for the three months ended June 30, 2006 was $(48,000) compared to $14,000 for the same period in 2005. The income tax (benefit) for the year ended March 31, 2006 was $(83,000) compared to $18,000 for the year ended June 30, 2005. The income tax (benefit) is attributed to significant tax-exempt interest income.
At June 30, 2006 total assets were $113.8 million compared to $97.4 million at June 30, 2005, an increase of $16.4 million, or 16.9%. Securities available for sale increased to $26.4 million at June 30, 2006 from $23.9 million at June 30, 2005 an increase of $2.5 million, or 10.4%. Net loans receivable increased to $76.8 million at June 30, 2006 from $64.3 million at June 30, 2005, an increase of $12.5 million, or 19.4%. The increase in net loans receivable consists primarily of an increase in commercial, consumer, and real estate loans. Deposits increased to $79.4 million at June 30, 2006 from $61.8 million at June 30, 2005, an increase of $17.6 million, or 28.5%. The increase in total deposits consists primarily of an increase of certificates of deposit. Borrowings from the FHLB totaled $26.1 million at June 30, 2006, compared to $26.6 million at June 30, 2005, a decrease of $500,000, or 1.7%.
Non-performing assets were $998,000, consisting of $848,000 of nonaccrual loans and $150,000 of other real estate owned at June 30, 2006, or 0.8% of total assets, an increase of $857,000 from June 30, 2005. The nonaccrual loans consisted of $450,000 in commercial real-estate loans, $287,000 in consumer loans, and $111,000 in real-estate loans. The allowance for loan losses totaled $572,000 at June 30, 2006, representing 67.4% of nonaccrual loans and 0.74% of gross loans receivable. At June 30, 2005 the allowance for loan losses totaled $294,000 and represented 208.5% of nonaccrual loans and 0.46% of gross loans receivable.
Total equity was $7.9 million at June 30, 2006 and $8.4 million at June 30, 2005. The decrease in equity is primarily the result of a decrease in market value of securities available for sale. At June 30, 2006 book value per share was $19.14. At June 30, 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 and operates out of 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)
June 30, June 30,
2006 2005
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Total Assets $113,765 $97,358
Loans receivable, net 76,801 64,308
Securities available for
sale 26,414 23,928
Deposits 79,365 61,783
Total borrowings 26,141 26,593
Total equity 7,903 8,364
Book value per share $ 19.14(a) $ 20.42 (a)
Common shares outstanding 437,437 436,547
Three Months Ended Twelve Months Ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
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Interest Income $1,619 $1,324 $5,801 $5,254
Interest Expense 1,052 757 3,586 3,022
Provision for loan
losses 181 29 271 120
Net interest income 386 538 1,944 2,112
Non-interest income
(loss) 84 49 278 (103)
Non-interest expense 539 484 2,221 1,968
Income (loss) before
taxes (69) 103 1 41
Income tax expense
(benefit) (48) 14 (83) 18
Net income (loss) (21) 89 84 23
Earnings (loss) per
share (basic) $(0.05) $ 0.24 $ 0.21 $ 0.06
Earnings (loss) per
share (diluted) $(0.05) $ 0.24 $ 0.20 $ 0.05
(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.