PRESS RELEASE
July 22, 2003
FOR IMMEDIATE RELEASE
Contact: Charles G. Urtin,
President / CEO
Telephone: 724-863-3100
www.myirwinbank.com
IBT Bancorp, Inc.
Announces Operating Results for the Second Quarter Ended June 30, 2003
Irwin, Pennsylvania, July 22, 2003: IBT Bancorp, Inc., (the "Company"), the
holding company of Irwin Bank & Trust Company, today announced its results of
operations for the three and six months ended June 30, 2003. The Company's net
income for the three months ended June 30, 2003 increased $313,000 to
$2,456,000, or $ .82 per diluted earnings per share, from $2,143,000, or $ .72
per diluted earnings per share, for the comparable 2002 quarter. Net income for
the six months ended June 30, 2003 increased $512,000 to $5,085,000 or $1.69 per
diluted earnings per share, from $4,573,000 or $1.53 per diluted earnings per
share. Due to the decline in interest rates, the net interest spread decreased
from 3.54% to 3.16% and 3.47% to 3.41% for the three and six months ended June
30, 2003, respectively, from the comparable 2002 periods.
Total assets of the Company increased $24,420,000 to $608,455,000 at June 30,
2003 as compared to $584,035,000 at December 31, 2002. Total loans reached
$384,534,000 at June 30, 2003 from $359,872,000 at December 31, 2002, an
increase of $24,662,000 or 6.9%. Securities available for sale decreased to
$169,630,000 at June 30, 2003 as compared to $186,718,000 at December 31, 2002.
The securities available for sale proceeds and an increase of $10.4 million in
Federal funds sold are being used to fund the strong loan demand and meet future
loan demands, which are being fueled by the historically low interest rates.
Total deposits reached $477,722,000 at June 30, 2003 as compared to total
deposits of $468,257,000 at December 31, 2002. The increase in total deposits of
$9,465,000 was primarily the result of increases in non-interest bearing
checking accounts due to an increase in the number of accounts and current
customers maintaining higher balances.
President and CEO Charles G. Urtin stated, "We are pleased with the solid
performance and record earnings of the Company. Strong growth of deposit
accounts and Federal Home Loan Bank Advances have offset the continued decrease
in the net interest margin and, coupled with increases in non-interest income
and the Company's commitment to controlling non-interest expenses, contributed
to the improved earnings."
Mr. Urtin added, "This quarter was marked by the ground-breaking at the future
site of the Company's full service branch office in the Central Greensburg area.
We are excited by the opportunity to serve this market and develop long-lasting
relationships within the community."
Irwin Bank & Trust Company is a state chartered commercial bank that conducts
its business from its main office located in Irwin, Pennsylvania, five branch
offices, a loan center, and five supermarket branches located in the
Pennsylvania counties of Westmoreland and Allegheny. The Bank's deposits are
insured up to the maximum legal amount by the Federal Deposit Insurance
Corporation. The Company's common stock is traded on AMEX under the symbol
"IRW". For more information please visit www.myirwinbank.com.
Statements contained in this news release which are not historical facts are
forward-looking statements as the term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties which could cause actual results to differ materially
from those currently anticipated due to a number of factors, which include, but
are not limited to, factors discussed in documents filed by the Company with the
Securities and Exchange Commission from time to time.
IBT Bancorp, Inc.
Selected Financial Data (Unaudited)
(Dollars in Thousands, except per share data)
June 30, December 31,
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2003 2002
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Total Assets $ 608,455 $ 584,035
Securities available for sale $ 169,630 $ 186,718
Total loans, net $ 384,534 $ 359,872
Total liabilities $ 549,452 $ 527,884
Interest bearing deposits $ 396,711 $ 393,918
Non-interest bearing deposits $ 81,011 $ 74,339
FHLB advances $ 53,688 $ 40,000
Shareholders' equity $ 59,003 $ 56,151
Three Months Ended Six Months Ended
June 30,
-------------------------------------------
2003 2002 2003 2002
-------- -------- -------- --------
Interest Income $ 8,339 8,344 16,832 16,551
Interest Expense 2,826 3,161 5,800 6,368
------- -------- -------- --------
Net interest income 5,513 5,183 11,032 10,183
Provision for loan losses 150 250 300 500
------- -------- -------- --------
Net interest income after
provision for loan losses 5,363 4,933 10,732 9,683
Non-interest income 1,686 1,254 3,127 2,589
Non-interest expense 3,744 3,264 6,990 6,114
------- -------- -------- --------
Income before income taxes 3,305 2,923 6,869 6,158
Income tax expense 849 780 1,784 1,585
------- -------- -------- --------
Net income $ 2,456 $ 2,143 $ 5,085 $ 4,573
======= ======== ======== ========
Per Share Data:
Basic earnings per share $ 0.82 $ 0.72 $ 1.71 $ 1.53
Diluted earnings per share $ 0.82 $ 0.72 $ 1.69 $ 1.53
Dividends per share $ 0.35 $ 0.30 $ 0.70 $ 0.60
Selected Ratios (annualized):
Return on Average Assets 1.63% 1.60% 1.70% 1.70%
Return on Average Equity 16.95% 16.98% 17.78% 18.19%
Net Interest Spread 3.16% 3.54% 3.41% 3.47%
Net Interest Margin 3.69% 4.12% 3.88% 4.03%
June 30, December 31,
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Additional Per Share Data: 2003 2002
------------ ------------
Shares Outstanding 2,977,655 2,977,655
Book Value per Share $ 19.82 $ 18.86