PRESS RELEASE
FOR IMMEDIATE RELEASE
Contact: Charles G. Urtin
President/CEO
Telephone: 724-863-3100
www.myirwinbank.com
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IBT Bancorp, Inc.
Announces Operating Results for the Third Quarter
Irwin, Pennsylvania, October 27, 2004; IBT Bancorp, Inc. (AMEX: IRW), the
holding company of Irwin Bank & Trust Company, today announced its results of
operations for the three and nine months ended September 30, 2004. Net income
for the three-month period ended September 30, 2004 was $2,161,000 or $.72 per
diluted share compared to $2,562,000 or $.85 per diluted share for the
comparable 2003 quarter. For the nine-month period ended September 30, 2004, net
income was $6,602,000 or $2.20 per diluted share compared to $7,647,000 or $2.57
per diluted share for the comparable period in 2003. For the quarter ended
September 30, 2004, net interest income declined $214,000 or 3.78% while
non-interest income declined $312,000 or 20% from the comparable 2003 quarter.
The decline in net interest income was caused by a continuing compression of the
net interest margin, which narrowed to 3.46% for the third quarter of 2004
compared to 3.89% for the comparable 2003 quarter. Non-interest income decreased
on a quarter-to-quarter basis due to lower gains on security and loan sales.
Non-interest expenses increased to $3,715,000 for the quarter ended September
30, 2004 compared to $3,582,000 for the comparable 2003 quarter. Although
salaries declined $15,000, employee benefits and occupancy expenses increased,
which accounted for the overall increases in non-interest expenses. For the nine
months ended September 30, 2004, net interest income declined $294,000 due to
the decrease in the net interest margin. Non-interest income declined $754,000
due to the one-time gain on the sale of real estate owned, which occurred in
April of 2003, and a decrease in gains on the sale of investment securities.
Non-interest expenses increased $660,000 due to increases in employee benefits,
the opening of the new Greensburg branches and continued investments in
technology.
President and CEO Charles G. Urtin stated, "The pressure on our net interest
margin, which impacted net income in the first two quarters of this year,
continues. The net interest margin for the three-month period ended September
30, 2004 declined 43 basis points to 3.46% compared to the same period in 2003.
For the nine months ended September 30, 2004, net interest margin declined 33
basis points to 3.55% compared to the nine-month period ended September 30,
2003. The fed funds rate has increased to 1.75% and this will have a positive
impact on the yield on our short-term investments. However, the uptick in rates
and increased competition for deposits could increase our cost of deposits. The
Company continues to grow and to pay a dividend. Total assets at September 30,
2004 increased $47,396,000 or 7.5% to $676,926,000 from $629,530,000 at December
31, 2003. We continue to manage the Company with long term goals in mind."
Total net loans reached $432,475,000 at September 30, 2004 as compared to
$416,286,000 at December 31, 2003. Investments increased to $204,781,000 at
September 30, 2004 as compared to $172,448,000 at December 31, 2003. Total
deposits
were $512,690,000 at September 30, 2004 as compared to $492,157,000 at
year end. Advances from the Federal Home Loan Bank of Pittsburgh increased to
$70,662,000 at September 30, 2004 as compared to $53,308,000 at December 31,
2003. Repurchase agreements nearly doubled to $24,682,342. Federal funds
purchased at September 30, 2004 were $4,912,000 as compared to $7,900,000 at
December 31, 2003.
The Company repurchased 5,100 shares during the quarter as authorized by a
previously approved stock buy-back plan, which authorized the repurchase of
151,100 shares. As of this date, 68,344 shares have been repurchased with 82,756
shares remaining. 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, seven 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
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)
September 30, December 31,
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2004 2003
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Total Assets $ 676,926 $ 629,530
Securities available for sale $ 199,096 $ 167,907
Federal Home Loan Bank stock, at cost $ 5,684 $ 4,541
Total loans, net $ 432,475 $ 416,286
Total liabilities $ 616,297 $ 569,924
Interest bearing deposits $ 432,003 $ 411,104
Non-interest bearing deposits $ 80,686 $ 81,053
FHLB advances $ 70,662 $ 53,308
Federal funds purchased $ 4,912 $ 7,900
Shareholders' equity $ 60,629 $ 59,606
Three Months Ended Nine Months Ended
September 30,
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2004 2003 2004 2003
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Interest Income $ 8,402 $ 8,382 $25,084 $25,214
Interest Expense 2,970 2,737 8,700 8,536
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Net interest income 5,432 5,645 16,384 16,678
Provision for loan losses 40 150 290 450
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Net interest income after
provision for loan losses 5,392 5,495 16,094 16,228
Non-interest income 1,270 1,582 3,955 4,709
Non-interest expense 3,715 3,582 11,232 10,573
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Income before income taxes 2,947 3,495 8,817 10,364
Income tax expense 786 933 2,215 2,717
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Net income $ 2,161 $ 2,562 $ 6,602 $ 7,647
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Per Share Data:
Basic earnings per share $ 0.73 $ 0.86 $ 2.23 $ 2.57
Diluted earnings per share $ 0.72 $ 0.85 $ 2.20 $ 2.57
Dividends per share $ 0.40 $ 0.35 $ 1.20 $ 1.05
Selected Ratios (annualized):
Return on Average Assets 1.30% 1.67% 1.35% 1.69%
Return on Average Equity 15.20% 17.19% 14.72% 17.57%
Net Interest Spread 3.08% 3.44% 3.15% 3.42%
Net Interest Margin 3.46% 3.89% 3.55% 3.88%
September 30, December 31,
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Additional Per Share Data: 2004 2003
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Shares Outstanding 2,955,455 2,977,655
Book Value per Share $ 20.51 $ 20.02