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.
Announces Operating Results for the
Fourth Quarter and Year Ended December 31, 2006
Irwin, Pennsylvania, February 6, 2007: IBT Bancorp, Inc., (the "Company"),
(AMEX: IRW) the holding company of Irwin Bank & Trust Company, today announced
its results of operations for the three months and year ended December 31, 2006.
The Company's net income for the three months ended December 31, 2006 decreased
$82,000 to $1,809,000 or $ .30 per diluted earnings per share, from $1,891,000,
or $ .32 per diluted earnings per share, (adjusted for the effects of a 100%
stock dividend paid on November 16, 2006) for the comparable 2005 quarter. Net
income for the year ended December 31, 2006 decreased $123,000 to $8,456,000, or
$ 1.42 per diluted earnings per share, from $8,579,000 or $1.44 per diluted
earnings per share, (adjusted for the effects of a 100% stock dividend paid
November 16, 2006) for the comparable 2005 period.
President and CEO, Charles G. Urtin, stated "The inverted yield curve and
significant increases in health care costs contributed to the decrease in net
income for the quarter and for the year. The inverted yield curve, which pays
higher interest rates for short-term instruments than for longer-term
instruments, has made it difficult to lend profitably and has eaten into our net
interest income. Employee benefit costs increased to $2.5 million for 2006 from
$1.8 million for 2005 due to rapidly increasing health care costs. Despite these
near-term challenges, we continue to manage the Company for the long-term. I am
pleased to report that we have continued to grow the Company and maintained the
dividend."
Total assets of the Company increased $55,811,000 to $740,962,000 at December
31, 2006 as compared to $685,151,000 at December 31, 2005. Total loans reached
$467,721,000 at December 31, 2006 from $442,225,000 at December 31, 2005, an
increase of $25,495,000 or 5.8%. Investments increased $25,256,000 to
$221,249,000 at December 31, 2006 as compared to $195,993,000 at December 31,
2005, an increase of 12.9%. Total deposits reached $572,472,000 at December 31,
2006 as compared to total deposits of $520,486,000 at December 31, 2005. The
increase in deposits was primarily the result of the growth in certificates of
deposit, which increased $57,820,000, or 23.0% over the prior year. Securities
sold to repurchase, which secure our sweep accounts, grew to $27,417,000 at
December 31, 2006, an increase of $8,974,000 or 49% compared to
balances outstanding at December 31, 2005. Outstanding advances at the Federal
Home Loan Bank of Pittsburgh at December 31, 2006 were $72,410,000 compared to
$68,651,000 at December 31, 2005.
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, three 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,
2006 2005
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Total Assets $ 740,962 $ 685,151
Securities available for sale 221,249 195,993
Federal Home Loan Bank Stock, at cost 5,197 5,470
Total loans, net 467,721 442,225
Total liabilities 678,381 624,070
Interest bearing deposits 486,918 436,639
Non-interest bearing deposits 85,554 83,847
FHLB Advances 72,410 68,651
Shareholder's equity 62,581 61,081
Three Months Ended Year Ended
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December 31,
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2006 2005 2006 2005
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Interest Income $10,744 $ 9,202 $40,393 $35,771
Interest Expense 5,257 3,759 18,514 13,682
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Net Interest Income 5,487 5,443 21,879 22,089
Provision for loan losses 300 300 1,500 1,200
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Net interest income after provision
for loan losses 5,187 5,143 20,379 20,889
Non Interest Income 1,706 1,594 7,349 6,635
Non Interest Expense 4,701 4,278 17,232 16,187
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Income before income taxes 2,192 2,459 10,496 11,337
Income tax expense 383 568 2,040 2,758
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Net Income $ 1,809 $ 1,891 $ 8,456 $ 8,579
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Per share data: (1)
Basic earnings per share $ 0.30 $ 0.32 $ 1.43 $ 1.45
Diluted earnings per share $ 0.30 $ 0.32 $ 1.42 $ 1.44
Dividends per share $ 0.25 $ 0.23 $ 1.00 $ 0.92
Selected Ratios (annualized)
Return on Average Assets 0.98% 1.11% 1.18% 1.26%
Return on Average Equity 11.59% 12.30% 13.74% 14.08%
Net Interest Spread 2.58% 2.89% 2.72% 3.02%
Net Interest Margin 3.16% 3.37% 3.24% 3.45%
Additional per share data: (1) December 31, December 31,
2006 2005
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Shares outstanding 5,882,640 5,910,910
Book value per share $ 10.64 $ 10.33
(1) Adjusted for the effects of a 100% stock dividend paid November 16, 2006