A FUTURE IN FOCUS
INDIANA UNITED BANCORP
Financial Report
March 31, 1995
Dear Shareholders and Friends:
First quarter earnings exceeded the prior year period by 15%,
reflecting improved operating efficiencies gained from merging
Peoples Bank and Union Bank in June, 1994 and divesting three
unprofitable Regional Bank branches in October, 1994. The branch
sale also supported strategies to reduce our dependency on high
costing funds, and was a major factor in the nearly $50 million
decline of interest-bearing deposits from a year ago. These
strategies produced a 47 basis point increase in our net interest
margin, which offset the volume decline and maintained stability in
net interest income.
Union Bank opened its Greensburg IGA Supermarket Branch on January
31, and it exceeded its growth goals in both February and March.
Regional Bank recently completed its purchase of a 2,500 square
foot facility at 1802 Allison Lane in Jeffersonville and expects to
open a fill service banking office by the end of June. Renovation
of Regional Bank's main office, which includes expanded drive-up
service and improved ATM access, should also be completed in June.
We believe each of these projects will enhance long term in-market
growth while we continue to seek broad market expansion through
acquisition and merger opportunities.
Very truly,
Robert E. Hoptry
Chairman and President
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited)
(Dollars in Thousands)
March 31
1995 1994
ASSETS
Cash and due from banks................. 7,843 7,853
Federal funds sold...................... 0 800
Interest-bearing deposits............... 147 530
Securities held to maturity............. 7,840 0
Securities available for sale........... 85,960 114,300
Loans................................... 194,736 206,119
Less: Allowance for Loan Losses........ (2,743) (2,719)
Net Loans........................... 191,993 203,400
Premises & Equipment.................... 5,640 6,542
Other Assets............................ 3,322 5,332
Total Assets........................ 302,745 338,757
LIABILITIES
Deposits:
Non-Interest Bearing.................. 22,701 22,757
Interest Bearing...................... 224,317 271,344
Total Deposits...................... 247,018 294,101
Short-Term Borrowings................... 19,272 8,131
Long-Term Debt.......................... 7,500 8,875
Other Liabilities....................... 2,866 2,707
Total Liabilities................... 276,656 313,814
SHAREHOLDERS' EQUITY
Preferred Stock......................... 2,200 2,400
Common Stock ........................... 1,251 1,138
Additional paid in capital.............. 10,677 8,099
Unrealized loss on securities available
for sale.............................. (950) (240)
Retained Earnings....................... 12,911 13,546
Total Shareholders' Equity.............. 26,089 24,943
Total Liabilities and
Shareholders' Equity.............. 302,745 338,757
Return on average assets................ .74% .56%
Return on averqage common equity........ 9.19 7.65
Tier 1 captial to total assets.......... 8.80 7.30
Shareholder Information
Transfer Agent
Securities Transfer Department
Mid-America Bank of Louisville
500 West Broadway, P. O. Box 1497
Louisville, KY 40202
Indiana United Bancorp is a community-focused bank and savings and
loan holding company serving eastern and southern Indiana through
its subsidiaries, Union Bank and Trust Company of Indiana, and
Regional Federal Savings Bank, New Albany.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(Dollars in Thousands)
Three Months Ended
March 31,
1995 1994
Interest income
Loans, including Fees 3,975 3,854
Investment securities 1,507 1,592
Other 3 26
Total interest income 5,485 5,472
Interest expense
Deposits 2,322 2,530
Other 436 210
Total interest expense 2,758 2,740
Net interest income 2,727 2,732
Provision for loan losses 3 43
Net interest income after provision
for loan losses 2,724 2,689
Noninterest income
Securities gains 1 20
Other operating income 349 373
Total noninterest income 350 393
Noninterst expenses
Salaries and employee benefits 1,129 1,186
Premises and equipment expense 381 380
Other expenses 653 731
Total noninterest expense 2,163 2,297
Income before income tax 911 785
Income tax expense 357 304
Net income 554 481
Net income per common share 0.41 0.35
Dividends per common share 0.16 0.14
Average common shares
outstanding 1,250,897 1,250,897
Preferred dividends 38 43
Common Stock
Indiana United Bancorp's common stock is traded on the over-the-counter
market and is listed on the NASDAQ exchange under the symbol "IUBC". Indiana
United Bancorp is also listed on the National Market System tables in many
daily papers under the symbol Ind Utd. Primary market makers are J.J. B.
Hilliard/W.L. Lyons, Inc.; and Raffensperger, Hughes and Company, Inc.
Market Value Range and Dividends
for Latest Four Quarters
1995 1994 1994 1994
Q1 Q4 Q3 Q2
High $ 23 $ 22 3/4 $ 21 7/8 $ 22 1/2
Low 19 1/2 19 1/8 20 19 3/4
Last Sale 22 1/2 21 21 7/8 20
Dividends .16 .16 .15 .15
Prices adjusted for a 10% stock dividend in December 1994.
Organization
Indiana United Bancorp
201 N. Broadway, P. O. Box 87
Greensburg, IN 47240
(812)663-0157
Offices
Robert E. Hoptry
Chairman and President
Daryl R. Tressler
Vice President
Jay B. Fager
Treasurer and Chief Financial Officer
Sue Fawbush
Vice President and Secretary
Jeffrey A. Whetstone
Auditor
Directors
William G. Barron
Chairman and President
Barron Homes, Inc.
Philip A. Frantz
Attorney, Partner
Coldren and Frantz
Glenn D. Higdon
President
Marlin Enterprises, Inc.
Robert E. Hoptry
Chairman and President
Indiana United Bancorp
Martin G. Wilson
Farmer
Edward J. Zoeller
President
E. M. Cummings Veneer
Subsidiaries
Regional Federal Savings Bank
Offices in New Albany
Union Bank and Trust Company of Indiana
Offices in Greensburg, Portland,
Westport, Clarksburg, Redkey