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Indiana Business Bancorp EPS $0.37

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Staff writer ▼ | December 27, 2013
Indiana Business Bancorp, the holding company for Indiana Business Bank, announced results for the three and nine months ended September 30, 2013.
Indiana Business Bancorp
Indiana Business BancorpIndiana Business Bancorp, the holding company for Indiana Business Bank, announced results for the three and nine months ended September 30, 2013.


The company recorded a profit of $124,632 or $.08 per share and $562,507 or $.37 per share for the three months and nine months ended September 30, 2013, respectively. This compares to a profit of $166,367 or $.11 per share and $549,559 or $.36 per share for the same periods in 2012.

Pre-tax earnings for the quarter were $41,735 less than the same period in 2012 due to a $68,919 loss on sale of OREO (Other Real Estate Owned). Pre-tax earnings for the first nine months of 2013 were 3.25% above the year earlier period, despite absorbing a total of $132,642 in OREO-related charges during 2013.

Non-interest income for the third quarter of 2013 was $18,515 compared to $61,471 for the third quarter of 2012. Non-interest income for the most recent quarter was negatively affected by the previously discussed loss on sale of OREO.

Non-interest income year to date in 2013 was $337,002 compared to $231,864 earned during the first nine months of 2012. This 45% year to date improvement is the result of increased gains on sale of government guaranteed loans, which grew from $157,337 in the third quarter of 2012 to $321,205 in the same period this year.

Non-interest expense (generally salaries and other operating expenses) increased slightly from $591,304 for the third quarter of 2012 to $593,499 for the same period 2013. Non-interest expense increased 4.7% from $1,756,820 for the first nine months of 2012 to $1,839,967 for the same period of 2013, due to an addition to staff and merit salary increases.

The provision for loan losses for the third quarter of 2013 was $60,000 and for year to date $180,000 compared to third quarter 2012 provision of $58,000 and year to date 2012 provision of $238,000. The smaller allocation reflects the general improvement of the credit environment and improved credit worthiness of our clients. The allowance for loan losses at September 30, 2013 was $956,911 or 1.84% of total loans.

The bank's Tier 1 Leverage Ratio of 15.7% and Total Risk Based Capital Ratio of 20.87% exceeded the levels needed to be considered "well capitalized" at September 30, 2013.


 

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