PRESS RELEASE
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT: CHARLES G. URTIN, PRESIDENT/CEO
TELEPHONE: 724-863-3100
www.myIrwinBank.com
IBT BANCORP, INC.
ANNOUNCES OPERATING RESULTS FOR THE SECOND QUARTER
IRWIN, PENNSYLVANIA, JULY 28, 2005; IBT Bancorp, Inc. (AMEX:IRW) (the
"Company"), the holding company of Irwin Bank & Trust Company, today announced
the results of its operations for the three and six months periods ended June
30, 2005. Net income for the three month period ended June 30, 2005 was
$2,326,000 or $.78 per diluted share compared to $2,088,000 or $.69 per diluted
share for the comparable 2004 quarter. For the six month period ended June 30,
2005 net income was $4,650,000 or $1.56 per diluted share compared to $4,441,000
or $1.47 per diluted share for the comparable period in 2004. For the quarter
ended June 30, 2005 net interest income increased $40,000 or .72%, non-interest
income increased $441,000 or 33%, and non-interest expense increased $196,000
over the quarter ended June 30, 2004. The nominal increase in net interest
income is a result of an easing of the pressure on the net interest margin and
asset growth. Non-interest income increased as a result of more fees earned on
transaction accounts and a one-time gain recorded from the sale of a property
classified as other real estate. Non-interest expenses increased to $4,064,000
for the quarter ended June 30, 2005 compared to $3,868,000 for the comparable
quarter in 2004. Salaries increased $111,000 as a result of merit increases and
additions to staff. For the six months ended June 30, 2005 net interest income
increased $193,000 due to asset growth. Non-interest income increased $717,000
or 26.70% due to the increase in service fees of $591,000 offset by a decrease
in the gain realized on the sale of securities of $129,000 and increases in
other income of $256,000. Non-interest expenses increased $257,000 due to
increase in salaries of $189,000 caused by merit increases and additions to
staff. Other non-interest expenses increased nominally.
President and CEO Charles G. Urtin stated, "We are pleased to report an increase
in earnings. Although a flattening yield curve and rising short-term interest
rates have put continued pressure on net interest margins at banks and thrifts,
we have seen our net interest margin begin to stabilize. We will continue to
manage the loan and investment portfolios to maximize yield, within our risk
tolerances, and manage the cost of deposits through a disciplined pricing
strategy. The increase in non-interest income is adding to the bottom line and
control of non-interest expenses, as well as a decrease in the effective income
tax rate has had a positive influence on the net income for the quarter. We may
experience continued negative pressure on the net interest margin unless the
yield curve becomes steeper but we will continue to manage the company for
success in the long-term."
Total assets of the Company increased to $681,179,000 at June 30, 2005 as
compared to $675,857,000 at December 31, 2004. Total net loans decreased to
$428,135,000 at June 30, 2005 from $436,548,000 at December 31, 2004. Two large
commercial loans were repaid earlier in the year. Investments increased to
$206,080,000 at June 30, 2005 as compared to $191,208,000 at December 31, 2004.
Total deposits were $517,188,000 at June 30, 2005 as compared to $526,216,000 at
December 31, 2004.
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, two loan centers, a trust department and four 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)
June 30, December 31,
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2005 2004
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Total Assets $ 681,179 $ 675,857
Securities available for sale $ 206,080 $ 191,208
Federal Home Loan Bank stock, at cost $ 5,094 $ 5,683
Total loans, net $ 428,135 $ 436,548
Total liabilities $ 619,844 $ 616,014
Interest bearing deposits $ 437,021 $ 438,968
Non-interest bearing deposits $ 80,167 $ 87,248
FHLB advances $ 69,598 $ 70,265
Shareholders' equity $ 61,335 $ 59,843
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------------- -----------------------------
2005 2004 2005 2004
--------------- --------------- ------------ -------------
Interest Income $ 8,814 8,372 $ 17,552 $ 16,682
Interest Expense 3,280 2,878 6,407 5,730
--------------- --------------- ------------ -------------
Net interest income 5,534 5,494 11,145 10,952
Provision for loan losses 300 125 600 250
--------------- --------------- ------------ -------------
Net interest income after
provision for loan losses 5,234 5,369 10,545 10,702
Non-interest income 1,778 1,337 3,402 2,685
Non-interest expense 4,064 3,868 7,774 7,517
--------------- --------------- ------------ -------------
Income before income taxes 2,948 2,838 6,173 5,870
Income tax expense 622 750 1,523 1,429
--------------- --------------- ------------ -------------
Net income $ 2,326 $ 2,088 $ 4,650 $ 4,441
=============== =============== ============ =============
Per Share Data:
Basic earnings per share $ 0.79 $ 0.70 $ 1.58 $ 1.49
Diluted earnings per share $ 0.78 $ 0.69 $ 1.56 $ 1.47
Dividends per share $ 0.46 $ 0.40 $ 0.92 $ 0.80
Selected Ratios (annualized):
Return on Average Assets 1.37% 1.28% 1.37% 1.38%
Return on Average Equity 15.61% 13.46% 15.16% 14.36%
Net Interest Spread 3.05% 3.13% 3.10% 3.18%
Net Interest Margin 3.47% 3.54% 3.50% 3.59%
June 30, December 31,
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Additional Per Share Data: 2005 2004
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Shares Outstanding 2,955,455 2,955,455
Book Value per Share $ 20.75 $ 20.25