EXHIBIT 99.1
PRESS RELEASE
INDIAN VILLAGE BANCORP, INC.
ANNOUNCES EARNINGS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003
Gnadenhutten, Ohio, October 17, 2003 - Indian Village Bancorp, Inc. (OTC
Bulletin Board: IDVB), the holding company for Indian Village Community Bank,
today reported results for the three months ended September 30, 2003.
Net income for the three months ended September 30, 2003 totaled $122,000
compared to $134,000 for the same period in 2002, a decrease of $12,000, or
9.0%. Basic earnings per share were $0.34 and $0.36 for the three months ended
September 30, 2003 and September 30, 2002, respectively. Diluted earnings per
share were $0.33 and $0.36 for the three months ended September 30, 2003 and
September 30, 2002, respectively.
Net interest income after the provision for loan losses for the three months
ended September 30, 2003 totaled $479,000 as compared to $495,000 for the same
period in 2002, a decrease of $16,000, or 3.2%. Total interest income was $1.3
million for the three months ended September 30, 2003, a $45,000 decrease from
the same three months period in 2002. Interest expense for the three months
ended September 30, 2003 was $775,000, a $44,000 decrease from the same period
one year prior. The provision for loan losses for the three months ended
September 30, 2003 was $30,000, a $15,000 increase from the same period in 2002.
The Company has experienced a decrease in net interest margin related to the
declining interest rate environment.
Non-interest income for the three months ended September 30, 2003 was $84,000,
compared to $94,000 for the same period in 2002, a decrease of $10,000. The
decrease in non-interest income for the first quarter was primarily attributed
to a decrease in realized gains on sales of investment securities. Non-interest
expense for the three months ended September 30, 2003 was $435,000, a $13,000
increase from the same period in 2002. The primary factors contributing to the
increase in non-interest expense was an increase in occupancy and equipment and
data processing expense.
At September 30, 2003 total assets were $97.4 million compared to $98.4 million
at June 30, 2003, a decrease of $1.1 million, or 1.1%. Net loans receivable
decreased to $48.3 million at September 30, 2003 from $49.7 million at June 30,
2003, a decrease of $1.4 million, or 2.8%. The decrease in net loans receivable
consists primarily of a decrease in residential loans. Deposits increased to
$56.4 million at September 30, 2003 from $55.9 million at June 30, 2003, an
increase of $522,000, or 0.9%. The increase in total deposits consists primarily
of an increase to money market accounts. Borrowings from the FHLB totaled $32.7
million at September 30, 2003, compared to $33.4 million at June 30, 2003, a
decrease of $616,000, or 1.8%.
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 September
30, 2003, or 1.4% of total assets, which is no change from June 30, 2003. 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
$282,000 at September 30, 2003, representing 21.5% of nonaccrual loans and 0.58%
of gross loans receivable. At June 30, 2003 the allowance for loan losses
totaled $268,000 and represented 20.5% of nonaccrual loans and 0.54% of gross
loans receivable.
Total equity at September 30, 2003 was $7.9 million, compared to $8.4 million at
June 30, 2003. The decrease in equity primarily consisted of a decrease in
accumulated other comprehensive income. At September 30, 2003 book value per
share was $21.92. Future repurchases, if any, will be at management's
discretion, taking into account market conditions and other relevant factors. 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 September 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)
SEPTEMBER 30, JUNE 30,
2003 2003
---------------------------------------------
Total Assets $ 97,375 $ 98,427
Loans receivable, net 48,293 49,674
Investment Securities 40,216 40,420
Deposits 56,403 55,881
Total borrowings 32,734 33,350
Total equity 7,898 8,400
Book value per share $ 21.92 (1) $ 23.37 (1)
Common shares outstanding 389,930 389,879
THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2003 2002
-------------------------------------------------
Interest Income $ 1,284 $ 1,329
Interest Expense 775 819
Provision for loan losses 30 15
Net interest income 479 495
Non-interest income 84 94
Non-interest expense 435 422
Income before taxes 128 167
Income tax expense 6 33
Net income 122 134
Earnings per share (basic) $ 0.34 $ 0.36
Earnings per share (diluted) $ 0.33 $ 0.36
(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.