Indiana Business Bancorp company recorded profit of $225,591Staff writer ▼ | December 12, 2015
Indiana Business Bancorp, the holding company for Indiana Business Bank, announced results for the three and nine months ended September 30, 2015.
Indiana Business Bancorp Pre-tax net income was $188,091
Pre-tax net income of $188,091 for the quarter represented a 10% increase over pre-tax net income of $171,112 reported for the third quarter of 2014. Year to date pre-tax net income increased 54% to $505,753 compared to pre-tax net income of $326,874 for the 2014 comparable period.
The improvement in earnings in the nine months ended September 30, 2015 is attributed to decreased provision expense and lower non-interest expense.
Non-interest income for the third quarter of 2015 was $120,795 compared to $163,978 for the third quarter of 2014.
Year to date 2015 non-interest income was $402,391 versus non-interest income of $311,154 in the same period last year. This income category is primarily driven by gains on SBA guaranteed loans sold.
Non-interest expense (generally salaries and other operating expenses) decreased to $602,492 in the third quarter of 2015 compared to non-interest expense of $655,153 during the prior year period.
Year to date 2015 non-interest expense of $1,888,998 was slightly below non-interest expense of $1,931,844 for the 2014 comparable period.
The bank has made no provision for loan losses thus far in 2015, following receipt of two large recoveries earlier in the year. Year to date in 2015, the bank has recorded a net recovery of $97,049.
At September 30, 2015, the allowance for loan losses was equal to 1.87% of gross loans and 112% of non-accrual loans.
The Bank’s Tier 1 Leverage Ratio of 22.21% and Total Capital Ratio of 23.48% exceeded the levels needed to be considered “well capitalized” at September 30, 2015. ■