PRESS RELEASE
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION 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 16, 2006; 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, 2006. Net income
for the three-month period ended September 30, 2006 was $2,151,000 or $.72 per
diluted share compared to $2,038,000 or $.68 per diluted share for the
comparable 2005 quarter. For the nine-month period ended September 30, 2006, net
income was $6,647,000 or $2.24 per diluted share compared to $6,688,000 or $2.24
per diluted share for the comparable period in 2005.
The increase in net income for the quarter reflects increased non-interest
income which offset higher non-interest expenses and an increased provision for
loan losses. Non-interest income increased $301,000 or 18% from the comparable
2005 quarter. The increase in non-interest income is due primarily to an
increase in net investment security gains of $239,000 and an increase in service
fees of $55,000 or 6% compared to the comparable 2005 quarter. Net interest
income after the provision for loan loss decreased $45,000 or 1% due to an
increase in the provision for loan losses of $50,000. Net interest income before
the provision for loan losses actually increased $5,000 or less than .1% over
the comparable quarter in 2005. Non-interest expenses increased to $4,275,000
for the quarter ended September 30, 2006 compared to $4,135,000 for the
comparable 2005 quarter. Pension and other employee benefits increased $189,000
or 42% compared to the 2005 quarter due to an increase in pension and health
care costs.
For the nine months ended September 30, 2006, net interest income decreased
$254,000 and the provision for loan losses increased $300,000 causing the net
interest income after the provision for loan losses to decrease $554,000 or
3.5%. Non-interest income increased $602,000 or 12% over the comparable quarter
in 2005 due primarily to an increase in net security gains of $640,000 and an
increase in service fees of $109,000. Other income decreased $201,000 due to
sales of real estate sold at a gain in 2005 which did not occur in 2006.
Non-interest expenses increased $622,000 due primarily to
increases in pension and employee health care costs of $391,000 or 29% compared
to the nine-month period ended September 30, 2005.
President and CEO Charles G. Urtin stated, "The increase in net income for the
quarter ended September 30, 2006 is due primarily to increase in security gains.
Net interest income has remained flat, which, during this period of an inverted
yield curve is a positive development. We have also seen increases in
non-interest income, excluding securities gains, and increases in employee
benefit costs. For the year to date there was no material change from the
previous nine-month period. Increases in non-interest income have been offset by
comparable increases in non-interest expenses."
Total net loans reached $464,400,000 at September 30, 2006 as compared to
$442,225,000 at December 31, 2005. Investments increased to $206,479,000 at
September 30, 2006 as compared to $195,993,000 at December 31, 2005. Total
deposits were $548,719,000 at September 30, 2006 as compared to $520,486,000 at
year-end. Advances from the Federal Home Loan Bank of Pittsburgh increased to
$69,909,000 at September 30, 2006 as compared to $68,651,000 at December 31,
2005. Repurchase agreements nearly doubled to $38,929,000.
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 department and three 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
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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2006 2005
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Total Assets $725,011 $685,151
Securities available for sale $206,479 $195,993
Federal Home Loan Bank stock, at cost $ 5,231 $ 5,470
Total loans, net $464,400 $442,225
Total liabilities $662,493 $624,070
Interest bearing deposits $461,594 $436,639
Non-interest bearing deposits $ 87,126 $ 83,847
FHLB advances $ 69,909 $ 68,651
Stockholders' equity $ 62,519 $ 61,081
Three Months Ended Nine Months Ended
September 30, September 30,
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2006 2005 2006 2005
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Interest Income $10,358 $ 9,016 $29,649 26,569
Interest Expense 4,853 3,516 13,257 9,923
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Net interest income 5,505 5,500 16,392 16,646
Provision for loan losses 350 300 1,200 900
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Net interest income after
provision for loan losses 5,155 5,200 15,192 15,746
Non-interest income 1,940 1,639 5,643 5,041
Non-interest expense 4,275 4,135 12,531 11,909
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Income before income taxes 2,820 2,704 8,304 8,878
Income tax expense 669 666 1,657 2,190
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Net income $ 2,151 $ 2,038 $ 6,647 $ 6,688
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Per Share Data:
Basic earnings per share $ 0.73 $ 0.69 $ 2.25 $ 2.26
Diluted earnings per share $ 0.72 $ 0.68 $ 2.24 $ 2.24
Dividends per share $ 0.50 $ 0.46 $ 1.50 $ 1.38
Selected Ratios (annualized):
Return on Average Assets 1.20% 1.20% 1.25% 1.31%
Return on Average Equity 14.44% 13.27% 14.63% 14.58%
Net Interest Spread 2.71% 2.96% 2.76% 3.04%
Net Interest Margin 3.24% 3.41% 3.27% 3.47%
September 30, December 31,
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Additional Per Share Data: 2006 2005
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Shares Outstanding 2,942,420 2,955,455
Book Value per Share $ 21.25 $ 20.67