Indiana Business Bancorp Reports Second Quarter Results and Cash Dividend

Business Wire


Indiana Business Bancorp (IBBI), the holding company for Indiana Business Bank, announced results for the three and six months ended June 30, 2014 and its third quarterly cash dividend.

The company recorded a profit of $138,469 or $.09 per share and $255,760 or $.16 per share for the quarter and year to date, respectively. This compares to a profit of $203,522 or $.13 per share and $437,877 or $.29 per share for the same periods in 2013. The reduction in net income over the year periods is attributable to a decline in gains on loans sold.

Non-interest income for the second quarter of 2014 was $61,953 compared to $196,806 for the second quarter of 2013. Year to date 2014 non-interest income was $147,177 versus same period last year non-interest income of $318,488. This income category is driven primarily by gains on SBA guaranteed loans sold. 2013 was a record year for the bank’s non-interest income and 2014 is more reflective of historical performance. The origination and sale of SBA guaranteed loans continues to be a primary strategy of the bank’s business model.

Non-interest expense (generally salaries and other operating expenses) of $637,483 for the second quarter compares to non-interest expense of $655,939 during the prior year period. Year to date non-interest expense of $1,276,695 reflects a 2% increase from $1,251,968 in the first half of 2013. The increase in non-interest expense is the result of an increase in staffing, merit salary increases and increases in benefit costs.

The bank made no provision for loan losses in the second quarter of 2014. The provision for year to date 2014 is $85,000 compared to a first half 2013 provision expense of $120,000. The smaller provision reflects the continuing improvement in the overall credit environment and the successful resolution of two non-performing loans during the first half of 2014. The bank achieved net recoveries of $83,160 in the first half of 2014 and the allowance for loan losses at June 30, 2014 was $1,042,529 or 1.95% of total loans.

The bank’s Tier 1 Leverage ratio of 15.57% and Total Risk Based Capital ratio of 20.36% exceeded the levels needed to be considered “well capitalized” at June 30, 2014.

Dividend Declared

The Company also announced that the Board of Directors declared a dividend of $0.02 per share of common stock, payable on August 18, 2014 to shareholders of record at the close of business on August 8, 2014. 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 Company’s financial condition, earnings, regulatory constraints and other factors.

President and CEO James S. Young stated, “Our bank continues to make progress. It is especially encouraging that over the last 12 months we have been able to reduce non-performing assets 43% while growing the loan portfolio 7%. We are pleased once again to provide value to our shareholder base through a cash dividend.”

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: changes in general, regional and local economic conditions, and their effect on interest rates; the impact of the downturn in housing and the adverse conditions in the credit markets; competition among banks and other financial intermediaries within the Indianapolis metropolitan market; risks that borrowers may default on their loans; and changes in regulations and accounting policies affecting financial institutions.




As of and for the
Three Months Ending
June 30


As of and for the
Six Months Ending
June 30

Operating Data         2014     2013     2014     2013
Net Interest Income         663,999     672,858     1,370,278     1,385,857
Provision for Loan Losses         0     60,000     85,000     120,000
Noninterest Income         61,953     184,603     147,177     318,488
Noninterest Expense         637,483     643,949     1,276,695     1,246,468
Pre-Tax Net Income         88,469     153,724     155,760     337,877
Tax Benefit         50,000     50,000     100,000     100,000
Net Income         138,469     203,724     255,760     437,877
Per Share Data                            
Net Earnings per share         .09     .13     .16     .29

Weighted Average Shares Outstanding





    1,575,214     1,514,165

As of

Balance Sheet Data        

June 30, 2014

        December 31, 2013         June 30, 2013
Total Assets 65,386,089 68,671,914 63,223,336
Total Loans 53,288,934 54,159,075 49,502,123
Allowance for Loan Losses 1,042,529 874,370 1,112,165
Investment Securities 8,970,469 8,141,359 7,413,552
Total Deposits 46,304,949 49,661,051 45,899,326
Total Shareholders’ Equity 10,545,858 10,418,284 10,148,726

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