GROWING
RELATIONSHIPS
Indiana United Bancorp
Financial Report
June 30, 1996
Dear Shareholders and Friends:
Indiana United has extended its trend of improved performance through the
first half of 1996. Second quarter net income is 30.6% ahead of the
comparable 1995 period, while six month earnings are 28.3% better than a
year ago.
All key performance ratios for the second quarter and the six month period
greatly exceed the similar periods in 1995. On a year to date comparison,
our net interest margin improved 27 basis points, return on average assets
improved 20 basis points and return on average common equity improved 180
basis points. In addition, our efficiency ratio improved from 69.17% to
61.73%.
On a per share basis, net income for the quarter outpaced the prior year
period by 35.6%. For the six month period, net income surpassed the first
half of 1995 by 33.7% Year to date common dividends of $.40 per share
are 25% higher than a year ago.
Based upon our expectation that second half earnings will exceed first half
results, the third quarter dividend, payable on September 20 to holders of
record as of September 10, will be increased to $.21 per share. This
increase is 23.5% above the $.17 per share paid in the third quarter of
1995.
I remain confident we have established a solid foundation from which we
will continue to enhance shareholder value as we pursue our strategic
goals.
Sincerely,
/s/ Robert E. Hoptry
Robert E. Hoptry
Chairman and President
July 8, 1996
CONSOLIDATED BALANCE SHEET
(Dollars in thousands, except per share amounts)
(Unaudited) June 30
1996 1995
Assets
Cash and due from banks $ 14,924 $ 9,920
Federal funds sold 4,300 7,700
Interest-bearing deposits 169 147
Securities held to maturity 7,764
Securities available for sale 87,329 80,139
Loans 207,077 201,354
Less: Allowance for loan losses (2,807) (2,754)
Net loans 204,270 197,546
Premises and equipment 5,959 5,837
Federal Home Loan Bank stock 1,138 1,138
Other assets 3,040 3,020
Total assets $321,129 $313,211
Liabilities
Deposits
Noninterest bearing $ 27,362 $ 27,673
Interest bearing 245,647 232,662
Total deposits 273,009 260,335
Short-term borrowings 13,197 15,986
Long-term debt 5,500 6,500
Other liabilities 2,517 3,007
Total liabilities 294,223 285,828
Shareholders' equity
Preferred stock 500 2,000
Common stock 1,251 1,251
Surplus 10,677 10,677
Unrealized loss on securities
available for sale (582) (22)
Retained earnings 15,060 13,277
Total shareholders' equity 26,906 27,383
Total liabilities and
shareholders' equity $321,129 $313,211
Return on average assets .96% .76%
Return on average common equity 11.01 9.21
Tier I capital to total assets 8.45 8.62
Total capital to risk-adjusted assets 15.88 16.52
SHAREHOLDER INFORMATION Indiana United Bancorp is a community-focused
Transfer Agent bank and savings and loan holding company
Securities Transfer Department serving eastern and southern Indiana through
Mid-America Bank of Louisville its subsidiaries, Union Bank and Trust
500 West Broadway, P.O. Box 1497 Company of Indiana, Greensburg, and
Louisville, Kentucky 40202 Regional Federal Savings Bank, New Albany.
CONSOLIDATED STATEMENT OF INCOME
(Dollar amounts in thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
Interest income
Loans, including fees $4,460 $4,173 $ 8,819 $ 8,148
Investment securities 1,332 1,417 2,609 2,924
Other 92 68 194 71
Total interest income 5,884 5,658 11,622 11,143
Interest expense
Deposits 2,660 2,560 5,250 4,882
Other 261 426 550 862
Total interest expense 2,921 2,986 5,800 5,744
Net interest income 2,963 2,672 5,822 5,399
Provision for loan losses 33 6 60 9
Net interest income after
provision for loan losses 2,930 2,666 5,762 5,390
Noninterest income
Securities gains - 10 - 11
Other operating income 413 420 734 769
Total noninterest income 413 430 734 780
Noninterest expense
Salaries and employee benefits 1,145 1,113 2,260 2,242
Premises and equipment expense 377 369 759 750
Other expenses 523 621 1,028 1,274
Total noninterest expense 2,045 2,103 4,047 4,266
Income before income tax 1,298 993 2,449 1,904
Income tax expense 514 392 968 750
Net income $ 784 $ 601 $ 1,481 $ 1,154
Net income per common share $0.61 $0.45 $1.15 $0.86
Dividends per common share $0.20 $0.16 $0.40 $0.32
Avg common shares outstanding 1,250,897 1,250,897 1,250,897 1,250,897
Preferred stock dividends $ 16 $ 35 $ 42 $ 73
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 1996 1995 1995
Q2 Q1 Q4 Q3
High $25 1/2 $26 1/4 $28 $27 1/2
Low 23 1/4 24 1/4 25 19 1/2
Last sale 24 1/2 24 1/4 25 27
Dividends .20 .20 .20 .17
ORGANIZATION
Indiana United Bancorp
201 N. Broadway, P.O. Box 87
Greensburg, IN 47240
(812) 663-0157
Officers
Robert E. Hoptry
Chairman and President
Daryl R. Tressler
Vice President
Michael K. Bauer
Vice President
Jay B. Fager
Treasurer and Chief Financial Officer
Sue Fawbush
Vice President and Secretary
Dennis M. Flack
Vice President, Director of Marketing
and Training
Dawn M. Schwering
Marketing Coordinator
Suzanne Kendall
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