GNADENHUTTEN, Ohio, May 8, 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 nine months ended March 31, 2007.
Net income (loss) for the three months ended March 31, 2007 totaled $(7,000) compared to $58,000 for the same period in 2006, a decrease of $65,000. Net income (loss) was $(196,000) for the nine months ended March 31, 2007 compared to $105,000 for the nine months ended March 31, 2006. Basic and diluted earnings (loss) per share were $(0.02) for the three months ended March 31, 2007. Basic and diluted earnings (loss) per share were $0.14 for the three months ended March 31, 2006. Basic earnings (loss) per share were $(0.47) and $0.26 for the nine months ended March 31, 2007 and March 31, 2006, respectively. Diluted earnings (loss) per share were $(0.47) and $0.25 for the nine months ended March 31, 2006, respectively.
Net interest income after the provision for loan losses for the three months ended March 31, 2007 totaled $527,000 as compared to $526,000 for the same period in 2006, an increase of $1,000. Net interest income after the provision for loan losses totaled $1.2 million for the nine months ended March 31, 2007, a $312,000 decrease from the same period in 2006. Total interest income was $1.6 million for the three months ended March 31, 2007, a $91,000 increase from the same three months period in 2006. Total interest income was $4.8 million for the nine months ended March 31, 2007, a $712,000 increase from the same nine month period in 2006. Total interest income increased primarily because of an increase in yield on loans. Interest expense for the three months ended March 31, 2007 was $1.0 million, a $98,000 increase from the same period one year prior. Interest expense for the nine months ended March 31, 2007 was $3.3 million, a $718,000 increase from the same period in 2006. Interest expense increased primarily due to an increase an increase in interest rates. The provision for loan losses for the three months ended March 31, 2007 was $22,000 compared to $30,000 for the three months ended March 31, 2006. The provision for loan losses for the nine months ended March 31, 2007 was $396,000, a $306,000 increase from the same nine 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 March 31, 2007 was $44,000, compared to $63,000 for the same period in 2006, a decrease of $19,000. For the nine months ended March 31, 2007, non-interest income was $202,000, a decrease of $41,000 from the same period in 2006. For the nine 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 March 31, 2007 was $610,000, a $48,000 increase from the same period in 2006. Non-interest expense for the nine months ended March 31, 2007 was $1.8 million, a $103,000, or 6.1% increase from the same period in 2006. 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 March 31, 2007 was $(32,000) compared to $(31,000) for the same period in 2006. The income tax (benefit) for the nine months ended March 31, 2007 was $(190,000) compared to $(35,000) for the same period in 2006. The income tax (benefit) is attributed to significant net operating losses and tax-exempt interest income.
At March 31, 2007 total assets were $103.9 million compared to $113.8 million at June 30, 2006, a decrease of $9.9 million, or 8.7%. Securities available for sale decreased to $18.9 million at March 31, 2007 from $26.4 million at June 30, 2006, a decrease of $7.5 million, or 28.4%. Net loans receivable decreased to $73.4 million at March 31, 2007 from $77.3 million at June 30, 2006, a decrease of $3.8 million, or 4.9%. The decrease in net loans receivable consists primarily of a decrease in construction real-estate, consumer and commercial real estate loans. Deposits decreased to $71.8 million at March 31, 2007 from $79.4 million at June 30, 2006, a decrease of $7.6 million, or 9.6%. The decrease in total deposits consists primarily of a decrease in certificates of deposit and money market accounts. Borrowings from the FHLB totaled $23.6 million at March 31, 2007, compared to $26.1 million at June 30, 2006, a decrease of $2.5 million, or 9.7%.
Non-performing assets were $1.4 million, consisting of $983,000 of nonaccrual loans and $454,000 of other real estate owned at March 31, 2007, or 1.4% of total assets, an increase of $440,000 from June 30, 2006. The nonaccrual loans consisted of $676,000 in commercial real-estate loans, $163,000 in consumer loans, and $144,000 in residential real-estate loans. The allowance for loan losses totaled $579,000 at March 31, 2007, representing 58.9% of nonaccrual loans and 0.78% 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 $8.2 million at March 31, 2007 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 March 31, 2007 book value per share was $19.74. At March 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)
March 31, June 30,
2007 2006
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Total Assets $ 103,914 $ 113,787
Loans receivable, net 73,446 77,250
Securities available for sale 18,905 26,414
Deposits 71,849 79,365
Total borrowings 23,617 26,141
Total equity 8,204 7,903
Book value per share $ 19.74(a) $ 19.14(a)
Common shares outstanding 437,432 437,437
Three Months Ended Nine Months Ended
March 31, March 31,
2007 2006 2007 2006
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Interest Income $ 1,572 $ 1,481 $ 4,845 $ 4,133
Interest Expense 1,023 925 3,252 2,534
Provision for loan losses 22 30 396 90
Net interest income 527 526 1,197 1,509
Non-interest income 44 63 202 243
Non-interest expense 610 562 1,785 1,682
Income (loss) before taxes (39) 27 (386) 70
Income tax expense (benefit) (32) (31) (190) (35)
Net income (loss) (7) 58 (196) 105
Earnings (loss) per share
(basic) $ (0.02) $ 0.14 $ (0.47) $ 0.26
Earnings (loss) per share
(diluted) $ (0.02) $ 0.14 $ (0.47) $ 0.25
(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.