EXHIBIT 99.1
Press Release
INDIAN VILLAGE BANCORP, INC.
ANNOUNCES EARNINGS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2003
Gnadenhutten, Ohio, May 2, 2003 - Indian Village Bancorp, Inc. (OTC Bulletin
Board: IDVB), the holding company for Indian Village Community Bank, today
reported results for the three and nine months ended March 31, 2003.
Net income for the three months ended March 31, 2003 totaled $80,000 compared to
$130,000 for the same period in 2002, a decrease of $50,000, or 38.5%. Net
income for the nine months ended March 31, 2003 was $285,000 compared to
$347,000 for the nine months ended March 31, 2002, a decrease of $62,000, or
17.9%. Basic earnings per share were $0.22 and $0.36 for the three months ended
March 31, 2003 and March 31, 2002, respectively. Diluted earnings per share were
$0.21 and $0.35 for the three months ended March 31, 2003 and March 31, 2002,
respectively. Basic earnings per share were $0.77 and $0.95 for the nine months
ended March 31, 2003 and March 31, 2002, respectively. Diluted earnings per
share were $0.75 and $0.94 for the nine months ended March 31, 2003 and March
31, 2002, respectively.
Net interest income after the provision for loan losses for the three months
ended March 31, 2003 totaled $355,000 as compared to $463,000 for the same
period in 2002, a decrease of $108,000, or 23.3%. Net interest income after the
provision for loan losses totaled $1.2 million for the nine months ended March
31, 2003, a $53,000 decrease from the same period in 2002. Total interest income
was $1.2 million for the three months ended March 31, 2003, a $34,000 decrease
from the same three months period in 2002. Total interest income was $3.8
million for the nine months ended March 31, 2003, a $27,000 increase from the
same nine months period in 2002. Interest expense for the three months ended
March 31, 2003 was $818,000, a $24,000, or 3.0% increase from the same period
one year prior. Interest expense for the nine months ended March 31, 2003
totaled $2.5 million, a $15,000 increase from the same period in 2002.
Non-interest income for the three months ended March 31, 2003 was $177,000,
compared to $65,000 for the same period in 2002, an increase of $112,000. The
increase in non-interest income for the third quarter was primarily attributed
to an increase in realized gains on sales of investment securities. For the nine
months ended March 31, 2003, non-interest income was $392,000, an increase of
$137,000 from the same period in 2002. Non-interest expense for the three months
ended March 31, 2003 was $451,000, a $58,000 increase from the same period in
2002. Non-interest expense for the nine months ended March 31, 2003 was $1.3
million, a $127,000, or 10.9% increase from the same period in 2002. The primary
factors contributing to the increase in non-interest expense was the increase in
salaries and employee benefits, data processing and other expenses related to
the data processing conversion that was completed in February 2003.
At March 31, 2003 total assets were $94.7 million compared to $85.3 million at
June 30, 2002, an increase of $9.4 million, or 11.1%. Securities available for
sale increased to $32.7 million at March 31, 2003 from $25.7 million at June 30,
2002, an increase of $7.0 million, or 27.2%. Net loans receivable decreased to
$50.5 million at March 31, 2003 from $52.5 million at June 30, 2002, a decrease
of $2.0 million, or 3.7%. The decrease in net loans receivable consists
primarily of a decrease in residential loans. Deposits increased to $55.3
million at March 31, 2003 from $52.0 million at June 30, 2002, an increase of
$3.4 million, or 6.5%. The increase in total deposits consists primarily of an
increase to money market accounts and certificates of deposit. Borrowings from
the FHLB totaled $30.6 million at March 31, 2003, compared to $24.8 million at
June 30, 2002, an increase of $5.7 million, or 23.1% which was used to fund the
increase in securities available for sale.
Non-performing assets, consisting of $70,000 in repossessed assets and real
estate owned and $1,422,000 of nonaccrual loans, totaled $1,492,000 at March 31,
2003, or 1.57% of total assets, a decrease of $623,000 from June 30, 2002. The
nonaccrual loans consist of $595,000 of commercial loans, $542,000 of
residential loans and $285,000 of consumer loans. The allowance for loan losses
totaled $398,000 at March 31, 2003, representing 27.9% of nonaccrual loans and
0.78% of gross loans receivable. At June 30, 2002 the allowance for loan losses
totaled $757,000 and represented 37.0% of nonaccrual loans and 1.42% of gross
loans receivable. In fiscal 2003, Management charged-off $469,000 in relation to
a large commercial borrower which resulted in a decrease in the allowance for
loan losses and in nonaccrual loans.
Total equity at March 31, 2003 was $8.6 million, compared to $8.3 million at
June 30, 2002. At March 31, 2003 book value per share was $22.92. At March 31,
2003, the Bank exceeded all regulatory capital requirements to be categorized as
"well capitalized" under applicable law and regulations.
This press release contains certain forward-looking statement within the meaning
of the federal securities laws. The Company intends such forward-looking
statements to be covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Reform Act of 1995, and is
including this statement for purposes of these safe harbor provisions.
Forward-looking statements, which are based on certain assumptions and describe
future plans, strategies and expectations of the Company, are generally
identified by use of the words "believe," "expect," "intend," "anticipate,"
"estimate," "project," or similar expressions. The Company's ability to predict
results or actual effect of future plans or strategies is inherently uncertain.
Factors which could have a material effect on the operations of the Company and
the subsidiaries include, but are not limited to, changes in: interest rates,
general economic conditions, legislative/regulatory changes, monetary and fiscal
policies of the U.S. Government, including policies of the U.S. Treasury and the
Federal Reserve Board, the quality or composition of the loan or investment
portfolios, demand for loan products, deposit flows, competition, demand for
financial services in the Company's market area and accounting principles and
guidelines. These risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed on such
statements. Further information concerning the Company and its business,
including additional factors that could materially affect the Company's
financial results, is included in the Company's filings with the SEC.
Indian Village Bancorp, Inc. is headquartered at 100 South Walnut Street,
Gnadenhutten, Ohio 44629.
FOR IMMEDIATE RELEASE
For Further Information Contact:
Marty Lindon, President
Indian Village Bancorp, Inc.
100 South Walnut Street
Gnadenhutten, Ohio 44629
(740) 254-4314
SELECTED FINANCIAL CONDITION AND OPERATING DATA
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
MARCH 31, JUNE 30,
2003 2002
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Total Assets $ 94,771 $ 85,328
Loans receivable, net 50,528 52,480
Investment Securities 32,717 25,721
Deposits 55,328 51,957
Total borrowings 30,573 24,826
Total equity 8,556 8,263
Book value per share $ 22.92(1) $ 22.40(1)
Common shares outstanding 404,479 402,139
THREE MONTHS ENDED NINE MONTHS ENDED
----------------------- ----------------------
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2003 2002 2003 2002
--------- ---------- ---------- ----------
Interest Income $ 1,238 $ 1,272 $ 3,818 $ 3,791
Interest Expense 818 794 2,482 2,467
Provision for loan
losses 65 15 110 45
Net interest income 355 463 1,226 1,279
Non-interest income 177 65 392 255
Non-interest expense 451 393 1,295 1,168
Income before taxes 81 135 323 366
Income tax expense 1 5 38 19
Net income 80 130 285 347
Earnings per share
(basic) $ 0.22 $ 0.36 $ 0.77 $ 0.95
Earnings per share
(diluted) $ 0.21 $ 0.35 $ 0.75 $ 0.94
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(1) Represents total equity divided by outstanding number of common shares at
each respective period end. ESOP shares are considered outstanding for this
calculation unless unearned.