IBT Bancorp, Inc.
Announces Operating Results for the Quarter Ended March 31, 2007
Irwin, Pennsylvania, April 30, 2007; IBT Bancorp, Inc. (the "Company"), the
holding company of Irwin Bank, today announced earnings of $1,868,000 or $.32
per diluted share for the quarter ended March 31, 2007 compared to $2,310,000 or
$.39 per diluted share for the comparable 2006 quarter (adjusted for a 100%
stock dividend paid on November 16, 2006 and accounted for as a 2-for-1 stock
split.)
For the three months ended March 31, 2007 net interest income before the
provision for loan losses decreased to $5,382,000 from $5,407,000 during the
comparable 2006 period. While interest income increased 13% over the comparable
2006 quarter, interest expense increased 30%. This is due to rates paid for
deposits increasing at a faster rate than rates charged for loans. Total
non-interest income decreased to $1,627,000 for the quarter ended March 31, 2007
compared to $1,845,000 for the comparable quarter in 2006. This is a result of a
decrease in investment security gains of $254,000 from the comparable 2006
quarter. Total non-interest expense for the quarter ended March 31, 2007 was
$4,370,000 compared to $4,038,000 for the comparable quarter in 2006. The
increase is due primarily to increases in benefits due to increases in health
care benefits costs and advertising costs. Income taxes decreased to $521,000
for the quarter ended March 31, 2007 from $604,000 for the comparable quarter in
2006 as a result of the decrease in net income.
President and CEO Charles G. Urtin stated, "As expected, the decrease in the net
interest margin continues as the Federal Reserve continues to hold short-term
interest rates at current levels. Current interest rate levels, with short-term
rates higher than long-term rates, have put increased negative pressure on the
Bank's net interest margin. The Bank's liabilities tend to price off the short
term-rates, while loans and investments price off the longer-term rates. The
Bank's net interest margin, the ratio of net interest income to average
interest-earning assets, has declined 23 basis points on a year-over-year basis.
On a positive note, we have been able to hold down salaries and occupancy
expenses, although medical insurance premiums continue to rise. We have designed
a new logo for our bank subsidiary and shortened the name, and instituted a new
training program that will enable our employees to deliver a level of service
that is second to none. These undertakings are a result of a branding and market
research initiative the Company began in the latter part of 2006. Although
advertising costs have increased as we get out the news of the new logo and name
and improvements in customer service, we expect these expenditures to pay
dividends in the future. We are continuing to target non-interest expenses, and
growing non-interest income to improve the earnings of the bank. We have
continued the dividend at current levels."
Total assets of the Company were $741,483,000 at March 31, 2007 as compared to
$740,962,000 at December 31, 2006. Net loans were $466,023,000 at March 31, 2007
as compared to $467,721,000 at December 31, 2006. The Bank experienced a decline
in first quarter loan originations following seasonal drop in fourth quarter
loan applications. Investments increased to $224,917,000 at March 31, 2007 as
compared to $221,249,000 at December 31, 2006.
Total deposits were $572,114,000 at March 31, 2007 as compared to $572,472,000
at December 31, 2006. Advances from the Federal Home Loan Bank of Pittsburgh
decreased to $69,947,000 at March 31, 2007 as compared to $72,410,000 at
December 31, 2006. Repurchase agreements increased to $30,072,000 at March 31,
2007 from $27,417,000 at December 31, 2006.
During the quarter the Company repurchased 600 shares on the open market at a
weighted average cost of $21.42 per share.
Irwin Bank 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 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 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)
March 31, December 31,
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2007 2006
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Total Assets $741,483 $740,962
Securities available for sale $224,917 $221,249
Federal Home Loan Bank stock, at cost $ 4,981 $ 5,197
Total loans, net $466,023 $467,721
Total liabilities $678,389 $678,381
Interest bearing deposits $486,766 $486,918
Non-interest bearing deposits $ 85,348 $ 85,554
FHLB advances $ 69,947 $ 72,410
Stockholders' equity $ 63,094 $ 62,581
Three Months Ended
March 31,
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2007 2006
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Interest Income $10,616 $ 9,418
Interest Expense 5,234 4,011
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Net interest income 5,382 5,407
Provision for loan losses 250 300
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Net interest income after
provision for loan losses 5,132 5,107
Non-interest income 1,627 1,845
Non-interest expense 4,370 4,038
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Income before income taxes 2,389 2,914
Income tax expense 521 604
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Net income $ 1,868 $ 2,310
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Per Share Data:
Basic earnings per share $ 0.32 $ 0.39
Diluted earnings per share $ 0.32 $ 0.39
Dividends per share $ 0.25 $ 0.25
Selected Ratios (annualized):
Return on Average Assets 1.01% 1.34%
Return on Average Equity 12.09% 15.27%
Net Interest Spread 2.52% 2.82%
Net Interest Margin 3.08% 3.31%
March 31, December 31,
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2007 2006
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Additional Per Share Data:
Shares Outstanding 5,882,040 5,882,640
Book Value per Share $ 10.73 $ 10.64