IBT Bancorp, Inc. [LOGO]
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PRESS RELEASE
FOR IMMEDIATE RELEASE
Contact: Charles G. Urtin,
President / CEO
Telephone: 724-863-3100
www.irwinbank.com
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IBT Bancorp, Inc. (AMEX: IRW)
Announces Operating Results for the Fourth Quarter and Year Ended
December 31, 2005
Irwin, Pennsylvania, February 2, 2006: [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, 2005.
The Company's net income for the three months ended December 31, 2005 increased
$2,408,000 to income of $1,891,000 or $.64 per diluted share from a loss of
$517,000, or $ (.17) per diluted earnings per share, for the comparable 2004
quarter. Net income for the year ended December 31, 2005 increased $2,494,000 to
$8,579,000 or $2.88 per diluted share from $6,085,000, or $2.02 per diluted
earnings per share, for the comparable 2004 period. Our results for the prior
year were impacted by an after tax charge to earnings related to an other than
temporary impairment in value of certain adjustable rate preferred stocks of
$2,381,000 in the fourth quarter of 2004.
President and CEO, Charles G. Urtin, stated, "Interest rates remained the
dominant story in 2005. The Federal Funds rate increased to 4.00% at the end of
December 2005 from 2.00% at the end of 2004, an increase of 200 basis points. In
contrast, longer-term rates, such as the constant maturity 10 year treasury bill
stood at 4.39% at the end of December 2005, up from 4.24% at the end of
December, 2004, an increase of only 15 basis points. The resulting flat yield
curve has put negative pressure on net interest income causing us to increase
rates paid on short-term deposits without a corresponding increase in the yield
on long-term loans and investments. Our net interest margin has declined 6 basis
points from December 2004 to December 2005. On a brighter note I am pleased to
report an increase in earnings for 2005. In the prior year, we wrote down our
adjustable rate preferred stocks because of an other than temporary decline in
value. Had we not taken this write down diluted earnings per share for the year
ended December 31, 2004 would have been $2.82 compared to $2.88 for the year
ended December 31, 2005, an increase of 2%. We continue to focus on
opportunities for growth, improving operational efficiency and enhancing product
offerings, including electronic solutions. In June of 2005, we opened a loan
center in Mt. Pleasant, PA. We consolidated three offices, which were within a
radius of 1.2 miles from each other. Our internet banking website was
redesigned. We introduced expanded business checking products to better meet the
needs of our commercial customers. Additionally, in this time of computer
hackers and
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309 Main Street - Irwin, PA 15642 o (724) 863-3100
identity theft we have increased the security of our electronic data files by
installing tougher fire walls and a continuous program of monitoring attempted
break-ins. We remain committed to a consistent management approach focused on
long-term performance and a commitment to enhancing shareholder value."
Total assets of the Company increased $9,294,000 to $685,151,000 at December 31,
2005 as compared to $675,857,000 at December 31, 2004. Total loans reached
$442,225,000 at December 31, 2005 from $436,548,000 at December 31, 2004, an
increase of $5,677,000 or 1 %. Investments increased $4,785,000 to $195,993,000
at December 31, 2005 as compared to $191,208,000 at December 31, 2004, an
increase of 2.5%. Total deposits reached $520,486,000 at December 31, 2005 as
compared to total deposits of $526,216,000 at December 31, 2004. The decrease in
deposits was primarily the result of the timing of direct deposits and
redemptions of jumbo certificates of deposits. Outstanding advances from the
Federal Home Loan Bank of Pittsburgh at December 31, 2005 were $68,651,000
compared to $70,265,000 at December 31, 2004.
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, two loan centers, four 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
(Dollars in Thousands, except per share data)
December 31, December 31,
2005 2004
Total Assets $685,151 $675,857
Securities available for sale 195,993 191,208
Federal Home Loan Bank Stock, at cost 5,470 5,683
Total loans, net 442,225 436,548
Total liabilities 624,070 616,014
Interest bearing deposits 436,639 438,968
Non-interest bearing deposits 83,847 87,248
FHLB Advances 68,651 70,265
Shareholder's equity 61,081 59,843
Three Months Ended Year Ended
December 31,
2005 2004 2005 2004
Interest Income $ 9,202 $ 8,642 $ 35,771 $ 33,726
Interest Expense 3,759 3,108 13,682 11,808
Net Interest Income 5,443 5,534 22,089 21,918
Provision for loan losses 300 310 1,200 600
Net interest income after provision
for loan losses 5,143 5,224 20,889 21,318
Non Interest Income 1,594 1,161 6,635 2,690
Non Interest Expense 4,278 6,289 16,187 15,095
Income before income taxes 2,459 96 11,337 8,913
Income tax expense 568 613 2,758 2,828
Net Income 1,891 (517) 8,579 6,085
Per share data:
Basic earnings per share $ 0.64 $ (0.17) $ 2.90 $ 2.05
Diluted earnings per share $ 0.64 $ (0.17) $ 2.88 $ 2.02
Dividends per share $ .46 $ .40 $ 1.84 $ 1.60
Selected Ratios (annualized)
Return on Average Assets 1.11% (.30%) 1.26% .92%
Return on Average Equity 12.30% (3.41%) 14.08% 10.25%
Net Interest Spread 2.89% 3.05% 3.02% 3.10%
Net Interest Margin 3.37% 3.45% 3.45% 3.51%
Additional per share data: December 31, December 31,
2005 2004
Shares outstanding 2,955,455 2,955,455
Book value per share $ 20.67 $ 20.25