Indiana Business Bancorp Reports Results of Operations for the Quarter and Year Ended December 31, 2013; Declares First Cash Dividend

Business Wire


Indiana Business Bancorp (OTC BB: IBBI.OB), the holding company for Indiana Business Bank, announced results for the quarter and year ended December 31, 2013.

Financial Highlights

The Company recorded a profit of $89,762 or $0.06 per share and $635,269 or $0.42 per share for the quarter and year ended December 31, 2013. Net income was $340,724 or $0.23 per share and $862,149 or $0.57 per share in the year earlier periods, respectively. Net income in both years includes recognition of a tax benefit in the amount of $100,000 for the quarter and $250,000 for the year from the carryover of net operating losses.

Non-interest income for the year was $389,347, compared to $397,808 in 2012. Gains on sale of SBA loans totaled $344,189 in 2013 and $293,718 in 2012. Non-interest income for 2013 included a $61,642 loss on sale of Other Real Estate Owned (“OREO”), and a $71,000 write-down on OREO. Non-interest income in 2012 included a $37,227 write-down on OREO.

Non-interest expense (generally salaries and other operating expenses) increased by 4.9% compared to the previous year. Significant among the year over year change in Non-interest expense were a $137,265 increase in Salaries & Benefits and an $88,414 Property tax expense associated with a property that was in foreclosure during the fourth quarter. On January 30, 2014, the property was sold at sheriff’s sale and the Company expects to recover all of the outstanding principal, accrued interest, and expenses associated with this loan from the net proceeds.

The provision for loan loss declined from $278,000 during 2012 to $240,000 during 2013. The reduced provision expense for the year reflects the improved credit profile of the loan portfolio. At December 31, 2013, the allowance for loan losses was $874,370, which represented 1.64% of total loans.

During 2013 the Company sold its sole remaining OREO property. Non-accrual loans and renegotiated loans totaled $4,646,728 at December 31, 2013.

President and CEO, James S. Young stated, “We are pleased with the 5% growth in gross loans achieved during the fourth quarter. We believe that the steps taken during 2013 to reduce problem assets and grow the loan portfolio have positioned the Bank to capitalize on the talents of its business development personnel in 2014.”

At December 31, 2013, the Company’s and the Bank’s capital exceeded all regulatory required minimums and the Bank was considered “well capitalized.”

Dividend Declared

The Company also announced that, on January 23, 2014, the Board of Directors declared a dividend of $0.06 per share of common stock, payable on February 18, 2014, to shareholders of record at the close of business on February 10, 2014. The dividend is the first dividend in the Company’s history. The Company expects to continue paying cash dividends on a quarterly basis; however, the payment and amount of any future dividends will be determined by the Board of Directors on the basis of the Company’s financial condition, earnings, regulatory constraints and other factors.

Mr. Young stated, “The Board of Directors and management believe the institution of quarterly cash dividends will enhance shareholder value and demonstrate our commitment to and confidence in our future prospects.”

About Indiana Business Bancorp and Indiana Business Bank

Indiana Business Bancorp is a bank holding company whose operations are conducted through its subsidiary, Indiana Business Bank, a state-chartered, locally-owned and managed commercial bank formed for the purpose of providing highly-personalized banking services for small to medium-sized businesses, their owners and professional services firms in the Indianapolis, Indiana metropolitan area. The Bank provides a full line of commercial banking loan, deposit, and cash management services that are delivered in a highly personalized manner by experienced banking professionals. The Bank specializes in serving the commercial and consumer banking needs of small to medium sized businesses and their owners, and professionals located primarily throughout Central Indiana.

We routinely post important information for investors on our website, in the “About” section under “Investor Relations.” We intend to use this website as a means of providing financial and other information to investors and other interested parties. Accordingly, investors should monitor our website, in addition to following our press releases and other presentations. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Indiana Business Bank and Indiana Business Bancorp’s business which are not historical facts are “forward-looking statements” that involve risks and uncertainties which may cause actual results to differ materially from expected results, including: risks associated with the regulation of financial institutions and holding companies, including capital requirements and the costs of regulatory compliance; failures or interruptions in communications and information systems; general economic conditions and conditions in the lending markets; competition; the loss of key members of management and other matters discussed in the press release. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.





As of and for the Three Months


As of and for the


Ended December 31


Twelve Months Ended December 31

Operating Data





    2013   2012

Net Interest Income

      676,505   736,865     2,771,978   2,910,538

Provision for Loan Losses

      60,000   40,000     240,000   278,000
Noninterest Income       52,344   177,303     389,347   397,808
Noninterest Expense       679,087   633,444     2,536,056   2,418,197

Pre Tax Net Income/(Loss)

      (10,238)   240,724     385,269   612,149

Def Tax Benefit

      100,000   100,000     250,000   250,000

After Tax Net Income

      89,762   340,724     635,269   862,149

Per Share Data


Net Earnings per share

      .06   .23     .42   .57

Weighted Average Shares Outstanding





    1,515,798   1,510,376

As of

Balance Sheet Data

December 31, 2013


December 31, 2012

Total Assets 68,530,844 64,835,744
Net Loans 53,310,535 50,187,591

Allowance for Loan Losses

874,370 1,210,763
Investment Securities 8,141,359 5,477,029
Total Deposits 49,691,323 50,216,183

Total Shareholders’ Equity

10,281,015 9,853,331

Indiana Business Bancorp
Gregory Gault, Executive Vice President, 317-218-2181
Guy Johnson Public Relations
Guy Johnson, 317-503-4605
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