EXHIBIT 99.2
PRESS RELEASE
INDIAN VILLAGE BANCORP, INC.
ANNOUNCES EARNINGS FOR THE THREE MONTHS AND YEAR ENDED JUNE 30, 2003
Gnadenhutten, Ohio, August 14, 2003 - Indian Village Bancorp, Inc. (OTC Bulletin
Board: IDVB), the holding company for Indian Village Community Bank, today
reported results for the three months and year ended June 30, 2003.
Net income for the three months ended June 30, 2003 totaled $103,000 compared to
a net loss of $115,000 for the same period in 2002, an increase of $218,000, or
189.6%. Net income was $388,000 for the year ended June 30, 2003 compared to
$232,000 for the year ended June 30, 2002, an increase of $156,000, or 67.2%.
Basic and diluted earnings (loss) per share were $.28 and ($0.32) for the three
months ended June 30, 2003 and June 30, 2002, respectively. Basic earnings per
share were $1.05 and $0.63 for the twelve months ended June 30, 2003 and June
30, 2002, respectively. Diluted earnings per share were $1.03 and $0.62 for the
twelve months ended June 30, 2003 and June 30, 2002, respectively.
Net interest income after the provision for loan losses for the three months
ended June 30, 2003 totaled $242,000 as compared to $33,000 for the same period
in 2002, an increase of $209,000, or 633.3%. Net interest income after the
provision for loan losses totaled $1.5 million for the year ended June 30, 2003,
a $156,000 increase from the same period in 2002. Total interest income was $1.2
million for the three months ended June 30, 2003, a $71,000 decrease from the
same three months period in 2002. Total interest income was $5.1 million for the
twelve months ended June 30, 2003, a $44,000 decrease from the same twelve
months period in 2002. Interest expense for the three months ended June 30, 2003
was $799,000, a $1,000 decrease from the same period one year prior. Interest
expense for the twelve months ended June 30, 2003 totaled $3.3 million, a
$14,000 increase from the same period in 2002. The provision for loan losses for
the three months ended June 30, 2003 was $195,000, a $279,000 decrease from the
same period in 2002. The provision for loan losses for the year ended June 30,
2003 was $305,000 compared to $519,000, a decrease of $214,000, or 41.2%. The
Company has experienced a decrease in net interest margin related to the current
economic conditions. The provision for loan losses in both years was
significantly impacted by the recognition of a specific loss allocation related
to a single commercial loan relationship, a modular and manufactured homes
dealer. The specific allocation recognized in 2002 was larger than that
recognized in 2003. Management expects collection efforts related to this
relationship to be finalized by September 2003 and believes that the Company has
incurred all losses anticipated as a result of the relationship.
Non-interest income for the three months ended June 30, 2003 was $288,000,
compared to $109,000 for the same period in 2002, an increase of $179,000. The
increase in non-interest income for the fourth quarter was primarily attributed
to an increase in realized gains on sales of investment securities. For the
twelve months ended June 30, 2003, non-interest income was $680,000, an increase
of $316,000 from the same period in 2002. Non-interest expense for the three
months ended June 30, 2003 was $438,000, a $59,000 increase from the same period
in 2002. Non-interest expense for the twelve months ended June 30, 2003 was $1.7
million, a $186,000, or 12.0% 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 June 30, 2003 total assets were $98.4 million compared to $85.3 million at
June 30, 2002, an increase of $13.1 million, or 15.4%. Securities available for
sale increased to $40.4 million at June 30, 2003 from $25.7 million at June 30,
2002, an increase of $14.7 million, or 57.1%. Net loans receivable decreased to
$49.7 million at June 30, 2003 from $52.5 million at June 30, 2002, a decrease
of $2.8 million, or 5.3%. The decrease in net loans receivable consists
primarily of a decrease in residential loans. Deposits increased to $55.9
million at June 30, 2003 from $52.0 million at June 30, 2002, an increase of
$3.9 million, or 7.6%. The increase in total deposits consists primarily of an
increase to money market accounts and certificates of deposit. Borrowings from
the FHLB totaled $33.4 million at June 30, 2003, compared to $24.8 million at
June 30, 2002, an increase of $8.6 million, or 34.3% 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 $1,310,000 of nonaccrual loans, totaled $1,380,000 at June 30,
2003, or 1.40% of total assets, a decrease of $735,000 from June 30, 2002. The
nonaccrual loans consist of $736,000 of residential loans, $304,000 of consumer
loans and $270,000 of commercial loans. The allowance for loan losses totaled
$268,000 at June 30, 2003, representing 20.5% of nonaccrual loans and 0.54% 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 $794,000 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 June 30, 2003 was $8.4 million, compared to $8.3 million at June
30, 2002. At June 30, 2003 book value per share was $23.37. In the foreseeable
future, Management does not anticipate the purchase of additional shares under
the third repurchase program. To date, 14,600 shares out of the 20,224 shares
authorized of the Company's stock has been repurchased at an average cost of
$20.24 per share. At June 30, 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 statements 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. Except as
required by law or regulation, the Company disclaims any obligation to update
such forward-looking statements.
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)
JUNE 30, JUNE 30,
2003 2002
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Total Assets $ 98,427 $ 85,328
Loans receivable, net 49,674 52,480
Investment Securities 40,420 25,721
Deposits 55,881 51,957
Total borrowings 33,350 24,826
Totaly 8,400 8,263
Book value per share $ 23.37(1) $ 22.40(1)
Common shares outstanding 389,879 402,139
THREE MONTHS ENDED TWELVE MONTHS ENDED
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JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
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Interest Income $1,236 $1,307 $5,054 $5,098
Interest Expense 799 800 3,281 3,267
Provision for loan losses 195 474 305 519
Net interest income 242 33 1,468 1,312
Non-interest income 288 109 680 364
Non-interest expense 438 379 1,733 1,547
Income (loss) before taxes 92 (237) 415 129
Income tax expense (credit) (11) (122) 27 (103)
Net income (loss) 103 (115) 388 232
Earnings per share (basic) $ 0.28 $(0.32) $ 1.05 $ 0.63
Earnings per share (diluted) $ 0.28 $(0.32) $ 1.03 $ 0.62
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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.