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Indiana United Bancorp
Financial Report
March 31, 1996
Dear Shareholders and Friends:
Net income in the first quarter totaled $696,884, exceeding the prior year
period by 26%. This strong earnings gain reflects continued improvement in
our net interest margin and tight rein over non-interest expenses. Nearly
every significant non-interest expense category declined compared to first
quarter, 1995 levels, and personnel expense was the lowest of any similar
period since 1991. Our net interest margin climbed 18 basis points,
extending gains achieved throughout 1995.
In March, $1,000,000 of preferred stock was redeemed, and $500,000 was
prepaid on long-term debt. During the last twelve months, long-term debt has
been reduced by $2,000,000.
First quarter earnings equaled $.54 per share, representing a 32% gain over
the quarter ending March 31, 1995. The common dividend of $.20 per share
paid on March 21 was 25% higher than the $.16 per share paid a year ago.
Our first quarter performance sustained our expectations that 1996 operating
results will outpace 1995 results in every major performance measurement
category. Recent Indiana United Bancorp stock transactions have included
trades priced as low as $24.25 per share. This price level equates to a
price/earnings ratio of only 11.2% and a current dividend yield of 3.3%.
These ratios suggest a favorable opportunity may now exist to accumulate
additional holdings, especially if our performance continues to validate our
financial assumptions.
Sincerely,
Robert E. Hoptry
Chairman and President
April 12, 1996
Consolidated Balance Sheet
(Dollar amount in thousands, except per share amounts)
(Unaudited)
March 31
1996 1995
Assets
Cash and due from banks $ 12,449 $ 7,873
Interest-bearing deposits 155 147
Securities held to maturity 7,840
Securities available for sale 83,875 84,822
Loans 199,787 194,736
Less: Allowance for laon losses (2,760) (2,743)
Net loans 197,027 191,993
Premises and equipment 5,966 5,640
Federal Home Loan Bank stock 1,138 1,138
Othre assets 2,675 3,322
Total assets $303,285 $302,745
Liabilities
Deposits
Noninterest bearing $ 23,753 $ 22,701
Interest bearing 232,066 224,317
Total deposits 255,819 247,018
Short-term borrowings 11,351 19,272
Long-term debt 5,500 7,500
Other liabilities 3,211 2,866
Total liabilities 275,881 276,656
Shareholders' equity
Preferred stock 1,000 2,200
Common stock 1,251 1,251
Surplus 10,677 10,677
Unrealized loss on securities
available for sale (67) (950)
Retained earnings 14,543 12,911
Total shareholsers' equity 27,404 26,089
Total liabilities and shareholders' equity $303,285 $302,745
Return on average assets .92% .74%
Return on average common equity 10.31 9.19
Tier I capital to total assets 8.93 8.80
Total capital to risk-adjusted assets 16.41 17.00
Shareholder Information
Transfer Agent
Securities Transfer Department
Mid-America Bank of Louisville
500 West Broadway, P. O. Box 1497
Louisville, Kentucky 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
(Dollar amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31
1996 1995
Interest income
Loans, including fees $ 4,359 $ 3,975
Investment securities 1,277 1,507
Other 101 3
Total interest income 5,737 5,485
Interest expense
Deposits 2,590 2,322
Other 289 436
Total interest expense 2,879 2,758
Net interest income 2,858 2,727
Provision for loan losses 27 3
Net interest income after provision
for loan losses 2,831 2,724
Noninterest income
Securities gains 1
Other operating income 321 349
Total noninterest income 321 350
Noninterest expense
Salaries and employee benefits 1,115 1,129
Premises and equipment expense 382 381
Other expenses 504 653
Total noninterest expense 2,001 2,163
Income before income tax 1,151 911
Income tax expense 454 357
Net Income $ 697 $ 554
Net income per common share $ .54 $ .41
Dividends per common share $ .20 $ .16
Average common shares outstanding 1,250,897 1,250,897
Preferred stock dividends $ 26 $ 38
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 NatCity Investments, Inc.
Market Value Range and Dividends
for Latest Four Quarters
1996 1995 1995 1995
Q1 Q4 Q3 Q2
High $ 26 1/4 $ 28 $ 27 1/2 $ 23
Low 24 1/4 25 19 1/2 20
Last Sale 24 1/4 25 27 20 1/2
Dividends .20 .20 .17 .16
Organization
Indiana United Bancorp
201 N. Broadway, P. O. Box 87
Greensburg, IN 47240
(812)663-0157
Officers
Robert E. Hoptry
Chairman and Presidnet
Daryl R. Tressler
Vice President
Michael K. Bauer
Vice President
Jay B. Fager
Treasurer and Chief Financial Officer
Sue Fawbush
Vice President & Secretary
Dennis M. Flack
Vice President, Director of Marketing and Training
Dawn M. Schwering
Marketing Coordinator
Suzanne Kendall
Staff Auditor
Directors
William G. Barron
Chairman and President Wm. G. Barron Enterprises
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, Jeffersonville
Union Bank and Trust Company of Indiana
Offices in Greensburg, Portland, Westport,
Clarksburg, Redkey