IBT Bancorp, Inc.
Announces Operating Results for the Quarter ended June 30, 2006
Irwin, Pennsylvania, July 17, 2006; IBT Bancorp, Inc. (the "Company"), the
holding company of Irwin Bank & Trust Company, today announced the results of
its operations for the three and six months ended June 30, 2006. Net income for
the three month period ended June 30, 2006 was $2,185,000 or $.73 per diluted
share compared to $2,326,000 or $.78 per diluted share for the comparable 2005
quarter. For the six month period ended June 30, 2006 net income was $4,496,000
or $1.51 per diluted share compared to $4,650,000 or $1.56 per diluted share for
the comparable 2005 six month period.
For the quarter ended June 30, 2006, net interest income decreased $55,000 or 1%
while non-interest income increased $81,000 or 4.55% due to the gain realized
from the sale of securities. The provision for loan losses increased to $550,000
for the quarter ended June 30, 2006 compared to $300,000 for the quarter ended
June 30, 2005 due to an increase in classified loans. Non-interest expenses
increased to $4,218,000 for the quarter ended June 30, 2006 compared to
$4,064,000 for the comparable quarter in 2005. Pension and other employee
benefits increased $96,000 as a result of increases in pension costs and
employee medical costs. Other non-interest expenses also increased with other
expenses increasing $113,000 or 10.78%. For the six months ended June 30, 2006
net interest income decreased $259,000. Non-interest income increased $301,000
or 8.84% due mainly to the increases in security gains. Non-interest expenses
increased $481,000 due to an increase of $202,000 in pension and employee
benefit costs due to increased pension costs and increases in employee medical
cost. Other expenses increased $164,000 as a result of normal increases in the
cost of doing business.
President and CEO Charles G. Urtin stated, "Continued interest rate increases by
the Federal Reserve have resulted in a flattening of the yield curve. This
flattening, and increased competition for deposits have increased the cost of
our interest bearing liabilities. However, interest rates on interest earning
assets have not risen as quickly or by the same amounts. We have been changing
the composition of our loan portfolio to add more asset-secured loans, which
earn higher rates of interest than real estate secured loans. While this change
in composition has resulted in an increase in the provision for loan losses, and
current competition for deposits and the flatter yield curve have negatively
impacted profitability, we believe that our strategy for the long-term should
produce positive results."
Total assets of the Company were $717,006,000 at June 30, 2006 as compared to
$685,151,000 at December 31, 2005. Net loans increased to $459,119,000 at June
30, 2006 from $442,225,000 at December 31, 2005. Investments increased to
$206,004,000 at June 30, 2006 as compared to $195,993,000 at December 31, 2005.
Total deposits were $535,249,000 at June 30, 2006 as compared to $520,486,000 at
December 31, 2005. Repurchase agreements were $31,384,000 at June 30, 2006,
compared to $18,443,000 at December 31, 2005. Advances from the Federal Home
Loan Bank of Pittsburgh increased to $78,576,000 at June 30, 2006 as compared to
$68,651,000 at December 31, 2005. The Company takes advantage of favorable
interest rates offered by the Federal
Home Loan Bank of Pittsburgh and uses the proceeds to make investments and loans
at rates higher than those charged for the borrowings. Total stockholders'
equity declined to $59,696,000 at June 30, 2006 compared to $61,081,000 at
December 31, 2005 due primarily to the change in accumulated other comprehensive
income. This change is attributable to the negative impact rising interest rates
have on the investment portfolio.
During the quarter the Company repurchased 12,160 shares on the open market at a
weighted average cost of $40.38 per share.
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, two loan centers, a trust division and two 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. The Company does not
undertake and specifically disclaims any obligation to update any such
forward-looking statements.
IBT Bancorp, Inc.
Selected Financial Data (Unaudited)
(Dollars in Thousands, except per share data)
June 30, December 31,
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2006 2005
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Total Assets $ 717,006 $ 685,151
Securities available for sale $ 206,004 $ 195,993
Federal Home Loan Bank stock, at cost $ 5,810 $ 5,470
Total loans, net $ 459,119 $ 442,225
Total liabilities $ 657,311 $ 624,070
Interest bearing deposits $ 451,649 $ 436,639
Non-interest bearing deposits $ 83,599 $ 83,847
FHLB advances $ 78,576 $ 68,651
Stockholders' equity $ 59,696 $ 61,081
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------- ------------------ ------------------
2006 2005 2006 2005
----------------- --------------- ------------------ ------------------
Interest Income $ 9,872 $ 8,814 $ 19,290 $ 17,552
Interest Expense 4,393 3,280 8,404 6,407
----------------- --------------- ------------------ ------------------
Net interest income 5,479 5,534 10,886 11,145
Provision for loan losses 550 300 850 600
----------------- --------------- ------------------ ------------------
Net interest income after
provision for loan losses 4,929 5,234 10,036 10,545
Non-interest income 1,859 1,778 3,703 3,402
Non-interest expense 4,218 4,064 8,255 7,774
----------------- --------------- ------------------ ------------------
Income before income taxes 2,570 2,948 5,484 6,173
Income tax expense 385 622 988 1,523
----------------- --------------- ------------------ ------------------
Net income $ 2,185 $ 2,326 $ 4,496 $ 4,650
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Per Share Data:
Basic earnings per share $ 0.74 $ 0.79 $ 1.52 $ 1.58
Diluted earnings per share $ 0.73 $ 0.78 $ 1.51 $ 1.56
Dividends per share $ 0.50 $ 0.46 $ 1.00 $ 0.92
Selected Ratios (annualized):
Return on Average Assets 1.23% 1.37% 1.28% 1.37%
Return on Average Equity 14.19% 15.61% 14.70% 15.16%
Net Interest Spread 2.81% 3.05% 2.79% 3.10%
Net Interest Margin 3.24% 3.47% 3.29% 3.50%
June 30, December 31,
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Additional Per Share Data: 2006 2005
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Shares Outstanding 2,941,920 2,955,455
Book Value per Share $ 20.29 $ 20.67