IBT Bancorp, Inc.
Announces Operating Results for the First Quarter Ended March 31, 2004
Irwin, Pennsylvania, April 27, 2004; IBT Bancorp, Inc. (the "Company"), the
holding company of Irwin Bank and Trust Company, today announced earnings of
$2,353,000 or $.78 per diluted share for the quarter ended March 31, 2004
compared to $2,629,000 or $.88 per diluted share for the comparable 2003
quarter. The on going low interest rate environment continues to put negative
pressure on interest earning assets while interest bearing liabilities are at
historic lows. The net interest margin declined to 3.63% at March 31, 2004 from
3.91% at March 31, 2003. Non-interest income decreased $93,000 or 6.5% to
$1,348,000 for the quarter ended March 31, 2004 compared to $1,441,000 for the
quarter ended March 31, 2003. The agreement between Master Card and Wal-Mart,
which reduced processing charges on debit card transactions, caused debit card
fees to decrease when compared to the comparable quarter in 2003. Total
non-interest expenses for the quarter ended March 31, 2004 increased $403,000 or
12.4% compared to the comparable quarter in 2003. Changes in non-interest
expenses for the first quarter of 2004 compared to the first quarter of 2003
were as follows: salaries increased due to annual salary increases and
additional staffing required by the opening of the Greensburg branch in November
2003, employee benefits increased due to increases in health care costs,
occupancy costs increased because of the addition of the Greensburg branch to
the branch network, and data processing costs increased due to the Company
introducing check imaging technology, preparations for Check 21 requirements and
the addition of document imaging technology.
President and CEO Charles G. Urtin stated, "The Company's assets have increased
$44.9 million or 7.5%, as compared to total assets at March 31, 2003. However,
the historic low interest rate environment continues to put pressure on the net
interest margin and does not allow growth in interest income to offset growth in
non-interest expense, which is a result of that asset growth. Intense
competition for deposits is also increasing pressure to raise rates on deposits
and external factors are decreasing sources of non-interest income. We will not
attempt to increase earnings with short-term strategies that could negatively
impact the future financial health of the organization, but continue to grow our
Company and manage the balance sheet for the long-term viability of the
Company."
Total assets of the Company increased to $644,463,000 at March 31, 2004 as
compared to $629,530,000 at December 31, 2003. Total loans reached $419,818,000
at March 31, 2004 from $416,286,000 at December 31, 2003. Investments increased
to $184,683,000 at March 31, 2004 as compared to $172,448,000 at December 31,
2003. Total deposits were $490,045,000 at March 31, 2004 as compared to
$492,158,000 at December 31, 2003. Reductions in deposits were the result of
changes in balances in demand accounts resulting from the ordinary course of
business. Advances from the Federal Home Loan Bank of Pittsburgh increased to
$61,116,000 at March 31, 2004 as compared to $53,308,000 at December 31, 2003.
The Company took advantage of favorable borrowing rates. Federal funds purchased
at March 31, 2004 was $10,200,000 compared
to $7,900,000 at December 31, 2003. The increase was due to a need for increased
liquidity.
The Company also indicated that it has not yet completed the stock buy back
announced in 1999. The repurchase authorized 151,100 shares and as of this date,
46,144 shares have been. Shares will be used for general corporate purposes and
will be purchased from time to time as conditions dictate.
Irwin Bank and 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, a trust department 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 the American Stock Exchange
under the symbol "IRW". For more information, please visit at
www.myirwinbank.com.
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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)
March 31, December 31,
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2004 2003
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Total Assets $ 644,463 $ 629,530
Securities available for sale $ 184,683 $ 172,448
Total loans, net $ 419,818 $ 416,286
Total liabilities $ 583,159 $ 569,924
Interest bearing deposits $ 412,235 $ 411,104
Non-interest bearing deposits $ 77,810 $ 81,053
FHLB advances $ 71,316 $ 61,208
Shareholders' equity $ 61,303 $ 59,606
Three Months Ended
March 31,
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2004 2003
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Interest Income $8,310 8,493
Interest Expense 2,852 2,974
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Net interest income 5,458 5,519
Provision for loan losses 125 150
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Net interest income after
provision for loan losses 5,333 5,369
Non-interest income 1,348 1,440
Non-interest expense 3,650 3,246
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Income before income taxes 3,031 3,563
Income tax expense 678 934
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Net income $2,353 $2,629
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Per Share Data:
Basic earnings per share $ 0.79 $ 0.88
Diluted earnings per share $ 0.78 $ 0.88
Dividends per share $ 0.40 $ 0.35
Selected Ratios (annualized):
Return on Average Assets 1.48% 1.77%
Return on Average Equity 17.54% 18.56%
Net Interest Spread 3.22% 3.43%
Net Interest Margin 3.63% 3.91%
March 31, December 31,
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Additional Per Share Data: 2004 2003
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Shares Outstanding 2,977,655 2,977,655
Book Value per Share $ 20.59 $ 20.02