PRESS RELEASE
FOR IMMEDIATE RELEASE
Contact: Charles G. Urtin,
President / CEO
Telephone: 724-863-3100
www.irwinbank.com
IBT Bancorp, Inc. (AMEX: IRW)
Announces Operating Results for the Fourth Quarter
and Year Ended December 31, 2003
Irwin, Pennsylvania, February 13, 2004: [AMEX: IRW] IBT Bancorp, Inc., (the
"Company"), the holding company of Irwin Bank & Trust Company, today announced
its results of operations for the three months and year ended December 31, 2003.
The Company's net income for the three months ended December 31, 2003 decreased
$73,000 to $1,999,000, or $ .66 per diluted earnings per share, from $2,072,000,
or $ .70 per diluted earnings per share, for the comparable 2002 quarter. Net
income for the year ended December 31, 2003 increased $709,000, to $9,646,000,
or $ 3.19 per diluted earnings per share, from $8,937,000, or $2.99 per diluted
earnings per share, for the comparable 2002 period.
President and CEO, Charles G. Urtin, stated "While fourth quarter earnings were
less than those of the prior year's fourth quarter, we are pleased to report
record earnings for 2003. The current interest rate environment has not only put
pressure on our net interest margin but has reduced opportunities for gains on
sales of loans and investments. Fourth quarter results were also affected by an
increase in non-interest expenses such as additional staff in our new branch and
higher medical insurance premiums. Despite the fourth quarter results, 2003 was
still a very good year for the Company. Net income, earnings per share and
assets are at all-time highs. In April of 2003 the Company stock became listed
on the American Stock Exchange. The new listing increased the liquidity of the
stock. We opened our new full service branch office in Greensburg in November.
We completed our conversion to check imaging this year and are well positioned
for the Check 21 requirements. We also rolled out a new deposit product,
"Maximum Checking" which has been a hit with our customers. Looking forward, if
the current interest rate environment continues, we see continued margin
pressures. The refinancing binge is about over and that will impact non-interest
income. We also see decreases in other non-recurring sources of non-interest
income. These trends will impact earnings in 2004. We will continue to emphasize
controlling non-interest expense and attempt to keep non-performing assets at
current levels."
Total assets of the Company increased $45,495,000 to $629,530,000 at December
31, 2003 as compared to $584,035,000 at December 31, 2002. Total loans reached
$416,286,000 at December 31, 2003 from $359,872,000 at December 31, 2002, an
increase of $56,414,000 or 16%. Investments decreased $15,658,000 to
$167,907,000 at December 31, 2003 as compared to $183,565,000 at December 31,
2002, a decrease of 8.5%. Decreases in investments helped fund the increase in
loans. Total deposits reached $492,158,000 at December 31, 2003 as compared to
total deposits of $468,257,000 at December 31, 2002. The increase in deposits
was primarily the result of the growth in non-interest bearing deposits, which
increased $6,714,000 over the prior year. The Company also took advantage of
favorably priced advances from the Federal Home Loan Bank of Pittsburgh.
Outstanding advances at December 31, 2003 were $61,208,000 compared to
$40,000,000 at December 31, 2002.
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.
Irwin Bank & Trust Company is a state chartered commercial bank that conducts
its business from its main office located in Irwin, Pennsylvania, six branch
offices, a loan center, five supermarket branches located in the Pennsylvania
counties of Westmoreland and Allegheny and a trust office in Greensburg
Pennsylvania. 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 the American Stock Exchange under the symbol "IRW".
IBT Bancorp, Inc.
Selected Financial Data (Unaudited)
(Dollars in Thousands, except per share data)
December 31, December 31,
------------------ ------------------
2003 2002
------------------ ------------------
Total Assets $ 629,530 $ 584,035
Securities available for sale $ 172,448 $ 186,718
Total loans, net $ 416,286 $ 359,872
Total liabilities $ 569,924 $ 527,884
Interest bearing deposits $ 411,104 $ 393,918
Non-interest bearing deposits $ 81,053 $ 74,339
FHLB advances $ 61,208 $ 40,000
Shareholders' equity $ 59,606 $ 56,151
Three Months Ended Twelve Months Ended
December 31,
--------------------------------------------------------------------
2003 2002 2003 2002
-------------- ------------- ------------------ ------------------
Interest Income $ 8,184 $ 8,485 $33,398 $33,560
Interest Expense 2,778 3,226 11,315 12,829
-------------- ------------- ------------------ ------------------
Net interest income 5,406 5,259 22,083 20,731
Provision for loan losses 150 300 600 1,100
-------------- ------------- ------------------ ------------------
Net interest income after
provision for loan losses 5,256 4,959 21,483 19,631
Non-interest income 1,182 1,420 5,891 5,317
Non-interest expense 3,728 3,546 14,300 12,831
-------------- ------------- ------------------ ------------------
Income before income taxes 2,710 2,833 13,074 12,117
Income tax expense 711 761 3,428 3,180
-------------- ------------- ------------------ ------------------
Net income $ 1,999 $ 2,072 $ 9,646 $ 8,937
============== ============= ================== ==================
Per Share Data:
Basic earnings per share $ 0.67 $ 0.70 $ 3.24 $ 3.00
Diluted earnings per share $ 0.66 $ 0.69 $ 3.19 $ 2.99
Dividends per share $ 0.35 $ 0.30 $ 1.40 $ 1.20
Selected Ratios (annualized):
Return on Average Assets 1.32% 1.42% 1.59% 1.61%
Return on Average Equity 13.71% 14.81% 16.54% 16.95%
Net Interest Spread 3.38% 3.29% 3.38% 3.39%
Net Interest Margin 3.83% 3.82% 3.83% 3.95%
December 31, December 31,
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2003 2002
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Additional Per Share Data:
Shares Outstanding 2,977,655 2,977,655
Book Value per Share $ 20.02 $ 18.86