-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HuDA1j7CJwzNgbMCep6UxWAHYr9ClruzxifaQbMCzqFZ86HGFrEv/eolEpbV7adF kl2/u8detijG4/xaLJyMwg== 0000720002-96-000008.txt : 19960814 0000720002-96-000008.hdr.sgml : 19960814 ACCESSION NUMBER: 0000720002-96-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: INDIANA UNITED BANCORP CENTRAL INDEX KEY: 0000720002 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 351562245 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-12422 FILM NUMBER: 96610750 BUSINESS ADDRESS: STREET 1: 201 N BROADWAY STREET 2: PO BOX 87 CITY: GREENSBURG STATE: IN ZIP: 47240 BUSINESS PHONE: 8126634711 MAIL ADDRESS: STREET 1: 201 NORTH BROADWAY STREET 2: P O BOX 87 CITY: GREENSBURG STATE: IN ZIP: 47240 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR QUARTER ENDED JUNE 30, 1996 COMMISSION FILE NUMBER 0-12422 INDIANA UNITED BANCORP (Exact name of registrant as specified in its charter) INDIANA 35-1562245 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 201 NORTH BROADWAY GREENSBURG, INDIANA 47240 (Address of principal executive offices) (Zip Code) (812) 663-0157 (Registrant's telephone number, including area code) NOT APPLICABLE (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No As of June 30, 1996 there were outstanding 1,250,897 shares, without par value of the registrant. INDIANA UNITED BANCORP FORM 10-Q INDEX Page No. PART I. FINANCIAL INFORMATION Item 1. Financial Statements 3 Consolidated Condensed Balance Sheet Consolidated Condensed Statement of Income 4 Consolidated Condensed Statement of Changes in Shareholders' Equity 5 Consolidated Condensed Statement of Cash Flows 6 Notes to Consolidated Condensed Financial Statements 7-8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9-21 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 22 Signatures 23 INDIANA UNITED BANCORP FORM 10-Q PART I. FINANCIAL INFORMATION Item 1. Financial Statements CONSOLIDATED CONDENSED STATEMENT OF CONDITION (Unaudited) (Dollars in thousands)
Jun 30, Dec 31, 1996 1995 Assets Cash and due from banks $ 14,924 $ 11,707 Interest-bearing demand deposits 69 72 Federal funds sold 4,300 7,150 Cash and cash equivalents 19,293 18,929 Short-term investments 100 5,100 Securities: Available for sale 87,329 80,651 Held to maturity - - Total securities 87,329 80,651 Loans: Loans 207,077 201,354 Less: Allowance for loan losses 2,807 2,754 Net loans 204,270 198,600 Premises and equipment 5,959 6,025 Federal Home Loan Bank stock 1,138 1,138 Core deposit intangibles 124 142 Accrued interest receivable 2,049 1,974 Other real estate - 45 Other assets 867 463 Total assets $321,129 $313,067 Liabilities Deposits: Non-interest bearing $ 27,362 $ 30,335 Interest bearing 245,647 232,011 Total deposits 273,009 262,346 Short-term borrowings 13,197 13,240 Long-term debt 5,500 6,000 Accrued interest payable 1,277 1,389 Other liabilities 1,240 1,847 Total liabilities 294,223 284,822 Shareholders' equity Preferred stock, no par value: Authorized-- 400,000 shares Issued and presently outstanding-- 5,000 shares and 20,000 shares 500 2,000 Common stock $1 stated value: Authorized--3,000,000 shares Issued and presently outstanding-- 1,250,897 shares 1,251 1,251 Paid-in surplus 10,677 10,677 Valuation adjustment-Securities AFS (582) 195 Retained earnings 15,060 14,122 Total shareholders' equity 26,906 28,245 Total liabilities and shareholders' equity $321,129 $313,067
See notes to consolidated condensed financial statements. INDIANA UNITED BANCORP FORM 10-Q CONSOLIDATED CONDENSED STATEMENT OF INCOME (Unaudited) (Dollars in thousands)
Three months ended Six months ended June 30, June 30, 1996 1995 1996 1995 Interest income: Loans, including fees $4,460 $4,173 $ 8,819 $ 8,148 Investment securities: Taxable 1,284 1,360 2,512 2,808 Tax-exempt 48 57 97 116 Federal funds sold 91 66 185 68 Interest-bearing deposits 1 2 9 3 Total interest income 5,884 5,658 11,622 11,143 Interest expense: Deposits 2,660 2,560 5,250 4,882 Short-term borrowings 151 259 318 530 Long-term debt 110 167 232 332 Total interest expense 2,921 2,986 5,800 5,744 Net interest income 2,963 2,672 5,822 5,399 Provision for loan losses 33 6 60 9 Net interest income after provision for loan losses 2,930 2,666 5,762 5,390 Noninterest income: Securities gains - 10 - 11 Other operating income 413 420 734 769 Total noninterest income 413 430 734 780 Noninterest expense 2,045 2,103 4,047 4,266 Income before income tax 1,298 993 2,449 1,904 Income tax expense 514 392 968 750 Net income $ 784 $ 601 $ 1,481 $ 1,154 Per common share: Net income $0.61 $0.45 $1.15 $0.86 Cash dividends declared 0.20 0.16 0.40 0.32 Avg common shares outstanding 1,250,897 1,250,897 1,250,897 1,250,897
See notes to consolidated condensed financial statements. INDIANA UNITED BANCORP FORM 10-Q CONSOLIDATED CONDENSED STATEMENT OF CHANGES TO SHAREHOLDERS' EQUITY (Unaudited) (Dollars in thousands)
1996 1995 Balance, January 1 $28,245 $24,282 Net income 1,481 1,154 Net change in unrealized gains (losses) on securities available for sale (777) 2,619 Redemption of preferred stock (1,500) (200) Cash dividends: Preferred stock (42) (73) Common stock (501) (399) Balance, June 30 $26,906 $27,383
See notes to consolidated condensed financial statements. INDIANA UNITED BANCORP FORM 10-Q CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (Unaudited) (Dollars in thousands)
Six months ended June 30 1996 1995 Cash flows from operating activities: Net income $ 1,481 $ 1,154 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 60 9 Depreciation and amortization 329 316 Premiums and discounts amort on inv securities 55 35 Accr of loan and deposit fair value adj 46 68 Amort and reduction of core deposit intangibles 18 20 Securities gains - (11) Increase in interest receivable (75) (64) Increase (decrease) in interest payable (112) 292 Other adjustments (888) 1,593 Net cash provided by operating activities 914 3,412 Cash flows from investing activities: Proceeds from int-bearing time dep maturities 5,003 56 Purchases of securities available for sale (15,717) (8,430) Proceeds from maturities and paydowns of securities available for sale 9,039 1,376 Proceeds from sales of sec available for sale - 10,754 Proceeds from sales of sec held to maturity - 351 Net change in loans (5,723) (5,532) Purchases of premises and equipment (263) (693) Proceeds from sales of other real estate 45 100 Other investment activities (1,011) 2,269 Net cash provided (used) by investing activities (8,627) 251 Cash flows from financing activities: Net change in: Noninterest bearing, NOW, money market and savings deposits (3,693) (6,629) Certificates of deposit 14,356 5,593 Short-term borrowings (43) 5,185 Payments on long-term debt (500) (1,000) Redemption of preferred stock (1,500) (200) Cash dividends (543) (472) Net cash provided by financing activities 8,077 2,477 Net increase in cash and cash equivalents 364 6,140 Cash and cash equivalents, beginning of period 18,929 11,580 Cash and cash equivalents, end of period $19,293 $17,720
See notes to consolidated condensed financial statements. INDIANA UNITED BANCORP FORM 10-Q NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Table dollars amounts in thousands) NOTE 1. The significant accounting policies followed by Indiana United Bancorp ("Company") and its subsidiaries, Union Bank and Trust Company of Indiana ("Union Bank") and Regional Federal Savings Bank ("Regional Bank") for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary for a fair presentation of the results for the periods reported, have been included in the accompanying consolidated financial statements. The results of operations for the six months ended June 30, 1996 are not necessarily indicative of those expected for the remainder of the year. NOTE 2.
Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Securities Available for Sale at June 30, 1996 U.S. Treasury $ 2,012 $ 3 $ 17 $ 1,998 Federal Agencies 25,624 110 467 25,267 State and Municipal 3,856 14 31 3,839 Corporate and other securities 366 30 336 Mortgage-backed securities 56,426 330 867 55,889 Totals $88,284 $457 $1,412 $87,329
Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Securities Available for Sale at December 31, 1995 U.S. Treasury $ 3,016 $ 12 $ 10 $ 3,018 Federal Agencies 12,257 259 104 12,412 State and Municipal 3,955 80 1 4,034 Corporate and other securities 480 60 420 Mortgage-backed securities 60,610 582 425 60,767 Totals $80,318 $933 $600 $80,651
Beyond Within 1-5 5-10 10 1 Year Years Years Years Totals Maturity Distributions at June 30, 1996 U.S. Treasury $1,005 $ 993 $ 1,998 Federal Agencies $6,065 8,031 $ 8,727 $ 2,444 25,267 State and Municipal 340 1,883 1,297 319 3,839 Corporate and other securities 336 336 Mortgage-backed securities 6,033 4,537 45,319 55,889 Totals $7,410 $16,940 $14,897 $48,082 $87,329 Weighted average yields 5.01% 5.44% 6.84% 6.62% 6.36% *Amounts in the tables above are based on scheduled maturity or call dates.
INDIANA UNITED BANCORP FORM 10-Q NOTE 3.
Jun 30 Dec 31 1996 1995 Loans: Commercial $ 9,263 $ 7,796 Agricultural production financing and other loans to farmers 11,427 9,996 Farm real estate 26,438 28,910 Commercial real estate mortgage 21,383 24,129 Residential real estate mortgage 108,693 103,238 Construction and development 6,603 6,863 Consumer 21,326 18,342 Government guaranteed loans purchased 1,944 2,080 Total loans $207,077 $201,354 Underperforming loans: Nonaccruing loans $1,142 $1,569 Accruing loans contractually past due 90 days or more as to principal or interest payments $23 $34 Allowance for loan losses: Balances, January 1 $2,784 $2,784 Provision for losses 60 30 Recoveries on loans 42 100 Loans charged off (49) (160) Balances, end of period $2,807 $2,754 NOTE 4. Deposits: Noninterest bearing $ 27,362 $ 30,335 NOW accounts 27,543 30,837 Money market deposit accounts 36,392 33,811 Savings 28,608 28,616 Certificates of deposit $100,000 or more 29,880 20,385 Other certificates and time deposits 123,224 118,362 Total deposits $273,009 $262,346 NOTE 5. Short-term borrowings: Securities sold under repurchase agreements $11,389 $10,735 U.S. Treasury demand notes 1,808 505 Federal Home Loan Bank advances - 2,000 Total short-term borrowings $13,197 $13,240
INDIANA UNITED BANCORP FORM 10-Q Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Indiana United Bancorp ("Company) is a registered bank holding company incorporated under the laws of Indiana in 1983, commensurate with its acquisition of Union Bank and Trust Company of Greensburg, Indiana. The Company acquired The Peoples Bank, Portland, Indiana in 1987, and Regional Federal Savings Bank, New Albany, Indiana ("Regional Bank") at the end of 1991. With the latter, Indiana United Bancorp became one of a small group of holding companies throughout the nation to operate both commercial banking and thrift subsidiaries. Union Bank and Trust Company of Indiana ("Union Bank") was created by the consolidation of the Greensburg and Portland operations in 1994. It's history traces back to 1873, and it holds Indiana state banking charter #1. At June 30, 1996, Union Bank held assets totaling $211 million and through its nine banking offices, ranked first in market share in Decatur County and second in Jay County. Regional Bank's assets totaled $110 million held by three banking offices in Floyd and Clark counties. Both subsidiaries offer competitive commercial and consumer loan deposit related services. Union Bank also operates a general line insurance agency and offers a broad range of personal and business trust services. Overview The Company operates under the broad tenets of a long-term strategic plan ("Plan") designed to improve the Company's financial performance, expand its competitive ability and enhance long-term shareholder value. The Plan is premised on the belief of the Company's board of directors that the Company can best promote long-term shareholder interests by continuing as an independently owned community banking organization. In conformance with the plan, during 1994, the Company consolidated the operations of its two commercial banking subsidiaries to form Union Bank, and sold three underperforming branches of Regional Bank. The Company believes each of those actions increased its operating efficiency and the latter improved its net interest margin. The plan also focused on improving net interest margin by reducing the Company's dependence on expensive, non-core deposits. During 1995, the Company initiated actions which are expected to build a stronger customer base in its primary markets. The Company invested approximately $500,000 to renovate Regional Bank's main office and $500,000 to open two new branch offices. The renovation allows for direct lobby access of all customer service and loan personnel, and greatly improves drive-up and electronic banking service. The Allison Lane branch in Jeffersonville was opened by Regional Bank to provide greater access to present and prospective customers in Clark County. Due to the recent completion of road improvements near this branch, management considers 1996 to be the appropriate period to measure the success of this branch. Union Bank opened the IGA supermarket branch in Greensburg, exclusively providing seven-day banking and extended hours to the community. Entry into new markets will be pursued through exploration of acquisition opportunities. INDIANA UNITED BANCORP FORM 10-Q A continuing tenet of the plan is to establish and cultivate more pro- active relationships with financial analysts and market makers in the Company's stock. Management met with prominent financial analysts in 1995, and additional contacts have taken place in 1996 with those same financial analysts and potential market makers as we continue to share Indiana United Bancorp's success story. The Company initiated a sales philosophy in 1995, supported by a performance-based employee incentive program. The initial phase of this program included sales-oriented training for all customer service personnel. During 1996, many technological improvements have been initiated. Certain of these improvements, such as upgrading communication lines, has provided faster response time for customer transactions. Others represent capital investments which will allow the Company to continue to effectively compete in the financial services industry. The dynamics of the plan assure continually evolving objectives, and the extent of the Company's success will depend upon how well it anticipates and responds to competitive changes within its markets, the interest rate environment and other external forces. Results of Operations Earnings for the second quarter of 1996 increased 30% to $784,000 as compared to the same quarter of 1995. Earnings for the first half of 1996 increased 28% to $1,481,000 as compared to the same period in 1995. Noninterest income in 1995 reflects approximately $25,000 of nonrecurring income. Generally speaking, only minimal changes have occurred in noninterest income in the second quarter and the first six months of 1996 as compared to the same periods last year. Noninterest expense reflects reduced Federal Deposit Insurance Corporation ("FDIC") assessments due to a lower deposit insurance assessment rate. Professional fees also decreased in the first half of 1996 as compared to the prior year. Net income per common share for the second quarter equaled $.61 in 1996, compared to $.45 in 1995. Per share earnings for the first half of 1996 and 1995 were $1.15 and $.86 respectively. The Company's return on average total assets for the second quarter was 1.01% in 1996 and .79% in 1995. Year-to-date return on average total assets was 0.96% and 0.76% for 1996 and 1995. Second quarter return on average common shareholders' equity was 11.53% in 1996 and 9.23% in 1995. Year-to-date return on average shareholders' equity was 11.01% and 9.21% for 1996 and 1995. Net Interest Income Net interest income is influenced by the volume and yield of earning assets and the cost of interest-bearing liabilities. Net interest margin reflects the mix of interest-bearing and noninterest-bearing liabilities that fund earning assets, as well as interest spreads between the rates earned on these assets and the rates paid on interest-bearing liabilities. Second quarter net interest income of $2,963,000 in 1996 increased 11% from $2,672,000 in 1995. The first six months net interest income increased by $423,000 or 8% over the same period in 1995. INDIANA UNITED BANCORP FORM 10-Q Throughout much of 1995, many of the Company's local competitors offered interest rates on long-term certificates of deposit significantly above national market averages. The Company believed this strategy would depress future years earnings of these competitors and elected not to engage in such activity. The Company instead employed a deposit pricing strategy focused on retaining and attracting shorter-term funds in anticipation of a lower interest rate environment in 1995 and 1996. The Company believes its ability to reprice these deposits in the near term will continue to improve its net interest margin relative to average peer performance. As expected, by mid 1995, many of these competitors had reduced or eliminated rate premiums on long-term deposits and, by year end 1995, the Company's competitive disadvantage in attracting these funds was minimal. Although many of the Company's peer group competitors reported flat or marginally changed net interest margins for the full year 1995, the Company increased its net interest margin by 20 basis points. In the first half of 1996, the Company increased its net interest margin to 3.98%, or 27 basis points higher than the same period last year. Provision for Loan Losses This topic is discussed under the heading "Loans, Credit Risk and the Allowance and Provision for Possible Loan Losses". Noninterest Income Noninterest income in 1996 for the first six months and the second quarter has changed only slightly in all categories from the same periods last year. Securities transactions in the first six months of 1995 resulted in a gain of $11,000 compared to no gain or loss in the same 1996 period. Insurance commissions continue to represent the largest component of recurring year-to-date noninterest income, equaling approximately 34% in both 1996 and 1995. Insurance income for 1996 is expected to exceed 1995 levels. Service charges on deposit accounts increased in the first half of 1996 by $19,000, primarily reflecting increased regular service charge income and NSF fees. Deposit growth and interest rate variables are also affecting service charge income in 1996.
(Dollars in thousands) 1996 1995 2nd Qtr 1st Half 2nd Qtr 1st Half Insurance commissions $155 $253 $155 $258 Trust fees 50 100 50 100 Service charges on deposit accounts 126 242 114 223 Gains on sales of securities - - 10 11 Other income 82 139 101 188 Total $413 $734 $430 $780
INDIANA UNITED BANCORP FORM 10-Q Noninterest Expense The largest component of noninterest expense is personnel expense. Personnel expenses in the first half of 1996 increased by $18,000, or 1%, as compared to the prior year period. Normal staff salary adjustments and increased benefit costs have been incurred in both 1996 and 1995, including amounts earned by employees in connection with the performance incentive compensation plan. Personnel expenses in 1996 are not expected to change materially from 1995. Effective January 1, 1995, the Company adopted SFAS No.106, Employers' Accounting for Postretirement Benefits Other Than Pensions, which focuses principally on postretirement health care benefits. SFAS No.106 requires the accrual of these benefits over the period the employee performs the service to earn the benefits rather than the prior practice of accounting for these benefits on the cash basis. The adoption of SFAS No.106 has not had any material effect on operations or financial condition in 1995 and 1996. Expenses related to premises and equipment expense increased minimally in 1996 as compared to the first half of 1995. Professional fees in 1995 were elevated by expenses incurred to an investment advisor. The investment advisory service was discontinued in early 1995.
(Dollars in thousands) 1996 1995 2nd Qtr 1st Half 2nd Qtr 1st Half Salaries and employee benefits $1,146 $2,260 $1,113 $2,242 Premises and equipment expenses 377 759 369 750 Professional fees 58 109 53 116 Amortization of core deposit intangibles 9 18 10 20 Deposit insurance/supervisory assessment 64 127 161 322 Stationery, printing, supplies 56 123 78 151 Insurance 25 54 33 68 Postage 40 92 48 98 Other operating expenses 270 505 238 499 Total $2,045 $4,047 $2,103 $4,266
Deposit insurance was $195,000 less in the first half of 1996 than the prior year, due to a lower rate and lower volume of deposits on which the insurance premium is calculated. In mid 1995, the FDIC reduced deposit insurance premiums paid by soundly managed banks, including Union Bank, by 83%. Since the bank insurance fund reached a mandated funding level in 1995, the assessment rate for the Company's commercial bank has been further reduced to the $2,000 minimum level permissible in 1996. The FDIC has also decided to retain the current premium rates paid by thrift institutions, and is currently evaluating several proposals for the recapitalization of the Savings Association Insurance Fund ("SAIF"). INDIANA UNITED BANCORP FORM 10-Q It is possible Congress will pass legislation to merge the bank and thrift components of the FDIC insurance fund, ultimately mandating the conversion of thrifts to commercial bank charters. Such legislation is likely to result in a one-time assessment of all thrift institutions, which, if based upon deposit balances as of March 31, 1995 as earlier proposed, would result in a nonrecurring pre-tax charge of approximately $700,000 for Regional Bank. Subsequent to the one-time charge, Regional Bank's assessment rate should decrease to the current level of commercial banks. Other operating expenses decreased 5% in the first half of 1996. Income Taxes Income tax expense for the first half of 1996 was $968,000 compared to $750,000 for the same period in 1995, and the effective rate was 40% for 1996 and 39% for 1995. The Company and its subsidiaries will file a consolidated federal income tax return for 1996. Financial Condition June 30, 1996 total assets increased to $321,129,000 from $313,067,000 at December 31, 1995, and increased from $313,211,000 on June 30, 1995. Short-term investments were primarily used to provide funding for loans and for the customary January withdrawals of public funds. Total average assets increased to $309,659,000 at June 30, 1996 compared to $305,149,000 at June 30, 1995. Average earning assets represent 95% of average total assets for the first half of 1996 and 96% for the first half of 1995. Average loans represent approximately 65% of average assets for the first six months of 1996 and 64% for the same period in 1995. Management is continuing its emphasis on loan growth in 1996. As compared to June 30, 1995 average noninterest-bearing deposits have increased approximately $544,000 and interest-bearing deposits have increased approximately $8,742,000. Since December 31, 1995 actual total deposits have increased by $10,663.000 or 4%. Long-term debt is the Company's loan for the purchase of Regional Bank and Union Bank and is secured by the capital stock of the Company's subsidiaries. Interest adjusts quarterly to the lender's prime rate, less 25 basis points. The Company successfully renegotiated the rate with the lender in mid 1995 and the new rate became effective July 1, 1995. The Company believes it has complied with all terms and covenants of the loan agreement. The Company prepaid its scheduled payment of $375,000, originally due June 30, 1996, plus an additional $125,000 in March 1996. The Company intends to make an additional prepayment later this year. Shareholders' equity was $26,906,000 on June 30, 1996 compared to $28,245,000 on December 31, 1995 and $27,383,000 on June 30, 1995. Book value per common share increased to $21.11 or 5% from $20.13 at June 30, 1995 and $20.98 at year end 1995. The unrealized loss on securities available for sale, net of taxes, totaled $582,000 or $.47 per share at June 30, 1996 compared to an unrealized loss of $22,000 or $.02 per share at June 30, 1995 and an unrealized gain of $195,000 or $.15 at December 31, 1995. Excluding the net unrealized gains or losses on securities available for sale, book value per share was $21.58 at June 30, 1996, or an increase of 7% over the comparable book value at June 30, 1995. The Company redeemed $1,000,000 of its preferred stock in March 1996 and $500,000 in June 1996. INDIANA UNITED BANCORP FORM 10-Q
Average Balance Sheet and Net Interest Analysis (Taxable equivalent basis)(1) Six months ended June 30, 1996 June 30,1995 Avg. Yield/ Avg. Yield/ Bal. Interest Rate Bal. Interest Rate ASSETS Interest-bearing deposits $ 371 $ 10 5.42% $ 147 $ 3 4.12% Federal funds sold 6,922 184 5.35% 2,262 68 6.06% Securities(2): Taxable 80,952 2,512 6.21% 90,191 2,808 6.23% Tax-exempt 3,903 147 7.53% 4,641 166 7.15% Total securities 84,855 2,659 6.27% 94,832 2,974 6.27% Loans(3): Commercial 61,532 2,928 9.57% 63,566 2,956 9.38% Real estate mortgage 119,484 4,757 7.96% 115,404 4,252 7.37% Installment 19,247 1,054 11.01% 14,532 831 11.53% Govt guaranteed loans purchased 2,012 80 8.00% 2,633 109 8.35% Total loans 202,275 8,819 8.74% 196,135 8,148 8.34% Total earning assets 294,423 11,672 7.94% 293,376 11,193 7.66% Allowance for loan losses (2,769) (2,733) Unrealized losses on securities (121) (1,920) Cash and due from banks 9,461 7,426 Premises and equipment 5,967 5,658 Other assets 2,698 3,342 Total assets $309,659 $305,149 LIABILITIES Interest-bearing deposits: NOW and Super NOW accounts $ 28,749 345 2.41% $31,157 418 2.71% Money market investment accounts 35,354 634 3.61% 36,213 639 3.56% Savings 29,125 469 3.24% 25,070 391 3.15% Certificates of deposit and other time deposits 142,762 3,802 5.36% 134,808 3,434 5.14% Total interest-bearing deposits 235,990 5,250 4.47% 227,248 4,882 4.33% Short-term borrowings 12,324 318 5.19% 17,788 530 6.01% Long-term debt 5,717 232 8.16% 7,411 332 9.03% Total int-bearing liabilities 254,031 5,800 4.59% 252,447 5,744 4.59% Noninterest bearing demand deposits 24,381 23,837 Other liabilities 3,445 2,894 Total liabilities 281,857 279,178 Shareholders' equity 27,802 25,971 Total liabilities and shareholders' equity $309,659 $ 5,800 3.96%(4) $305,149 $ 5,744 3.95%(4) Net interest income $ 5,872 3.98% $ 5,449 3.71% Adjustment to convert tax exempt securities and loans to a fully taxable equivalent basis using a marginal rate of 34% $50 $60
(1) Adjusted to reflect income related to securities and loans exempt from Federal income taxes reduced by nondeductible portion on interest expenses. (2) Yields for investment securities available for sale are computed based upon amortized costs. (3) Nonaccruing loans have been included in the average balances. (4) Total interest expense divided by total earning assets. INDIANA UNITED BANCORP FORM 10-Q Loans, Credit Risk and the Allowance and Provision for Possible Loan Losses Loans remain the Company's largest concentration of assets and continue to represent the greatest risk. The loan underwriting standards observed by each of the Company's subsidiaries are viewed by management as a deterrent to the emergence of an abnormal level of problem loans and a subsequent increase in net chargeoffs. The Company's conservative loan underwriting standards have historically resulted in higher loan quality and lower levels of net chargeoffs than peer bank averages. The Company also believes credit risks are elevated by undue concentrations of loans in specific industry segments and loans to out of area borrowers. Accordingly, the Company's board of directors regularly monitors such concentrations to determine compliance with its restrictive loan allocation policy. Total loans increased 3% over June 30, 1995 loan totals, primarily reflecting the expansion of the consumer loan portfolio and management's emphasis on indirect automobile financing beginning in late 1995 and continuing to the present. Consumer loans increased 32% at June 30, 1996 compared to the same period in 1995. The Company is continuing this emphasis on increasing consumer loans the remainder of 1996 to provide greater diversification within the portfolio and to generate higher yields than residential real estate loans. Although the Company limits its exposure to long-term fixed rate residential mortgage loans and generally observes 20% downpayment guidelines, it is originating both fixed rate loans and loans with little or no downpayment for a noncompeting mortgage lender during 1996. This program will assist the Company in serving all segments of the community without incurring unacceptable levels of credit exposure or interest rate risk. The origination of these loans will also provide additional fee income. The Company regards its ability to identify and correct loan quality problems as one of its greatest strengths. Loans are placed in a nonaccruing status when in management's judgment the collateral value and/or the borrower's financial condition does not justify accruing interest. As a general rule, commercial and real estate loans are reclassified to nonaccruing status at or before becoming 90 days past due. Interest previously recorded but not deemed collectible is reversed and charged against current income. Subsequent interest income on nonaccrual loans is thereafter recognized only when collected. Non-real estate secured consumer loans are not placed in nonaccruing status, but are chargedoff when policy-determined delinquent status is reached. Net chargeoffs were $7,000 on June 30, 1996 compared to $71,000 on June 30, 1995. In prior periods the Company has historically outperformed its peer group's net loan loss average, and although peer data has yet to be released for the current period, that trend should continue. The determination of the provision in any period is based on management's continuing review and evaluation of loan loss experience, changes in the composition of the loan portfolio, current economic conditions and the amount of loans outstanding Management maintains a listing of loans warranting either the assignment of a specific reserve amount or other special administrative attention. This listing, together with a listing of all classified loans, nonaccrual loans and loans delinquent 30 days or more, is reviewed monthly by the board of directors of each subsidiary. INDIANA UNITED BANCORP FORM 10-Q
Summary of Allowance for Loan Losses (Dollars in thousands) 1996 Year ended thru December 31, June 30 1995 Balance at beginning of period $2,754 $2,784 Chargeoffs: Commercial 16 91 Real-estate mortgage - 38 Installment 33 31 Total chargeoffs 49 160 Recoveries: Commercial 30 61 Real-estate mortgage - 27 Installment 12 12 Total recoveries 42 100 Net Chargeoffs 7 60 Provision for loan losses 60 30 Balance at end of period $2,807 $2,754 Ratio of net chargeoffs to average loans outstanding during the period - .03% Ratio of provision for loan losses to average loans outstanding during the period .03% .02% Ratio of allowance to total loans at end of period 1.36% 1.37%
Allocation of the Allowance for Loan Losses (Dollars in thousands) June 30, 1996 December 31, 1995 Amount Percent Amount Percent Real estate: Residential $ 141 5% $ 134 5% Agricultural 13 14 Commercial 760 27 575 21 Construction and development 72 3 75 3 Total real estate 986 35 798 29 Commercial: Agribusiness 145 5 117 4 Other commercial 282 10 445 16 Total commercial 427 15 562 20 Consumer 156 6 131 5 Unallocated 1,238 44 1,263 46 Total $2,807 100% $2,754 100%
INDIANA UNITED BANCORP FORM 10-Q The ability to absorb loan losses promptly when problems are identified is invaluable to a banking organization. Most often, losses incurred as a result of quick collection action are much lower than losses incurred after prolonged legal proceedings. Accordingly, the Company observes the practice of quickly initiating stringent collection efforts in the early stages of loan delinquency. The adequacy of the allowance for loan losses in each subsidiary is reviewed at least monthly. The determination of the provision amount in any period is based on management's continuing review and evaluation of loan loss experience, changes in the composition of the loan portfolio, current economic conditions, the amount of loans presently outstanding, and the amount and composition of growth expectations. The allowance for loan losses as of June 30, 1996, is considered adequate by management. The Company adopted SFAS No.114 and No.118, Accounting by Creditors for Impairment of a Loan and Accounting by Creditors for Impairment of a Loan- Income Recognition and Disclosures, on January 1, 1995. Impaired loans are measured by the present value of expected future cash flows, or the fair value of the collateral of the loan, if collateral dependent. The amount of impaired loans at June 30, 1995 and 1996 was not material. Investment Securities Investment securities offer flexibility in the Company's management of interest rate risk, and is the primary means by which the Company provides liquidity and responds to changing maturity characteristics of assets and liabilities. The Company's investment policy prohibits trading activities and does not allow investment in high risk derivative products or junk bonds. Effective January 1, 1994, the Company adopted new accounting rules for securities. The rules require that each security must be individually designated as a "held to maturity" (HTM) security or as an "available for sale" (AFS) security. Late in 1995, the Financial Accounting Standards Board allowed an unprecedented "one time" transition reclassification. While the vast majority of the Company's investments were already designated AFS, the Company took this opportunity to reclassify all remaining HTM securities to AFS to provide even greater management flexibility in responding to changes within financial markets. As of June 30, 1996, all investment securities are classified as AFS and are carried at fair value with unrealized gains and losses, net of taxes, excluded from earnings and reported as a separate component of shareholders' equity. A net unrealized loss of $582,000 was recorded to adjust the AFS portfolio to current market value at June 30, 1996, compared to a net unrealized loss of $22,000 at June 30, 1995. At June 30, 1996, the yield of the investment securities portfolio was 6.36%, representing a slight increase from 6.27% at June 30, 1995 and 6.33% at year end 1995. Variable rate securities comprised 48% of the total portfolio on June 30, 1996 compared to 53% on June 30, 1995. The weighted average life of the portfolio was 2.00 years on June 30, 1996 as compared to 1.17 years on June 30, 1995. INDIANA UNITED BANCORP FORM 10-Q SFAS No.119, Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments, requires disclosures about derivative financial instruments - futures, forward swap and option contracts, and other financial instruments with similar characteristics, was effective for 1995 for the Company. The Company does not have any derivative financial instruments as defined in SFAS No.119. Sources of Funds The Company relies primarily on customer deposits and securities sold under repurchase agreements, along with shareholders' equity to fund earning assets. On an infrequent basis, Federal Home Loan Bank ("FHLB") advances are used to provide additional funds. The Company is not aware of any recommendations by regulatory authorities which would materially affect liquidity, capital resources or operations. Deposits generated within local markets provide the major source of funding for earning assets. Average total deposits were 88% and 86% of total earning assets at June 30, 1996 and 1995. Total interest-bearing deposits averaged 91% of average total deposits at June 30, 1996 and 1995. Management is continuing efforts to increase the percentage of transaction- related deposits to total deposits due to the positive effect on earnings. Securities sold under repurchase agreements ("repos") are high denomination investments utilized by public entities and commercial customers as an element of their cash management responsibilities. Repos are not subject to FDIC assessment so they are less costly than large certificates of deposit. With the reduction in the FDIC assessment, repos will not have the cost advantage previously held. Management has utilized large denomination certificates of deposit thus far in 1996 to replace a portion of the funds previously invested in repos. Repurchase agreement totals however, have remained fairly steady as many long-time users still prefer this product. Short-term borrowings decreased 17% at June 30, 1996 compared to the same period last year. FHLB advances represented most of this decrease. Depending upon the level of loan demand, management may elect to use FHLB advances again in 1996. The Company decreased average repos and other short-term borrowings at June 30, 1996 to $12,324,000 or 31% below the $17,788,000 at June 30, 1995. The Company has continued to prepay long-term debt in 1996. Long-term debt decreased $500,000 at June 30, 1996, of which $125,000 represented reductions in excess of scheduled payments. Management expects to continue its history of accelerated payments yet again in late 1996. Capital Resources Total shareholders' equity was $26,906,000 at June 30, 1996, and includes $500,000 of preferred stock. The Company redeemed $1,000,000 of preferred stock in March 1996 and $500,000 in June 1996. INDIANA UNITED BANCORP FORM 10-Q The Federal Reserve Board has adopted risk-based capital guidelines which assign risk weightings to assets and off-balance sheet items. The Company's core capital (Tier 1) consists of shareholders' equity less goodwill, while total capital consists of core capital, certain debt instruments and a portion of the allowance for credit losses. At June 30, 1996, Tier 1 capital to total assets was 8.45%. Total capital to risk- adjusted assets was 15.88%. Both ratios substantially exceed all regulatory definitions of a well-capitalized institution. Shareholders' equity was impacted by the Company's initial decision to categorize a large portion of its securities portfolio as AFS under accounting rules adopted January 1, 1994. Securities in this category are carried at fair value, and shareholders' equity is adjusted to reflect unrealized gains and losses, net of taxes. On November 29, 1995, in accordance with the transition reclassification allowed by the Financial Accounting Standards Board, securities previously classified at HTM were transferred to AFS. As of June 30, 1996, 100% of the investment portfolio is designated as AFS. The Company declared and paid common dividends of $.20 per share in the second quarter of 1996 and $.16 for the same quarter last year. Book value per common share increased 5% to $21.11 from $20.13 on June 30, 1995. The net adjustment for AFS securities decreased book value by $.47 and $.02 at June 30, 1996 and 1995. Depending on market conditions, the adjustment for AFS securities can cause significant fluctuations in equity. The dividend payment rate on preferred stock was 6.34% during each of the past two years. Liquidity Liquidity management involves maintaining sufficient cash levels to fund operations and to meet the requirements of borrowers, depositors, and creditors. Higher levels of liquidity bear higher corresponding costs, measured in terms of lower yields on short-term, more liquid earning assets, and higher interest expense involved in extending liability maturities. Liquid assets include cash and cash equivalents, money market instruments, and securities maturing within one year. In addition, the Company holds $79,919,000 of AFS securities maturing after one year which can be sold to meet liquidity needs. Liquidity is reinforced by maintaining a relatively stable funding base, which is achieved by diversifying funding sources, extending the contractual maturity of liabilities, and limiting reliance on volatile short-term purchased funds. The Company's strategy is to fund assets to the maximum extent possible with core deposits, which provide a sizable source of relatively stable and low-cost funds. Average core deposits funded approximately 88% of total earning assets at June 30, 1996. Shareholders' equity and long-term debt also contribute to liquidity by reducing the need to continually rely on short-term purchased funds. At the end of June 1996, long-term debt totaled 2% of total assets and 20% of total shareholders' equity versus 2% of total assets and 24% of total shareholders' equity at June 30, 1995. Management believes the Company has sufficient liquidity to meet all reasonable borrower, depositor, and creditor needs in the present economic environment. INDIANA UNITED BANCORP FORM 10-Q Interest Rate Risk At June 30, 1996 the Company held approximately $177,721,000 in assets, comprised of securities, loans, short-term investments, and federal funds sold, which were interest sensitive in one year or less time horizons. The Company's interest rate sensitivity analysis for the period ended June 30, 1996 is presented below. Core deposits are distributed or spread among the various repricing categories based upon historical patterns of repricing which are reviewed periodically by management. The assumptions regarding these repricing characteristics greatly influence conclusions regarding interest sensitivity. Management believes its assumptions regarding these liabilities are reasonable. Effective asset/liability management requires the maintenance of a proper ratio between maturing or repriceable interest-earning assets and interest- bearing liabilities. It is the policy of the Company that rate-sensitive assets less rate-sensitive liabilities to total assets be kept within a range of 80% to 130%. The Company's strategy is to maintain near neutral when rates are likely to remain stable and shifting slightly toward a negative gap when rate are expected to decline and a positive gap when rates are expected to rise. The Company is continuing to pursue a strategy to attain a neutral to a slightly negative gap position in the belief that the current interest rate cycle has peaked. In any event, the Company does not anticipate that its earnings will be materially impacted the remainder of 1996 regardless of the direction interest rates may trend.
Rate Sensitivity Analysis at June 30, 1996 (Dollars in thousands) Maturing or Repricing Over 3 - 3 Months 1 Year 3 Years 5 Years Rate-sensitive assets $ 87,343 $ 90,378 $ 40,335 $ 29,407 Rate-sensitive liabilities 106,771 85,840 48,241 22,874 Rate sensitivity gap (assets less liabilities) $(19,428) $ 4,538 $ (7,906) $ 6,533 Rate sensitivity gap (cumulative) $(19,428) $(14,890) $(22,796) $(16,263) Percent of tot assets (cumulative) (6.0%) (4.6%) (7.1%) (5.1%) Rate-sensitive assets/ liabilities (cumulative) 81.8% 92.3% 90.5% 93.8%
*Interest-bearing transaction and savings accounts are not presented as immediately repriceable in the above table. INDIANA UNITED BANCORP FORM 10-Q Effects of Changing Prices The Company's asset and liability structure is substantially different from that of an industrial company in that most of its assets and liabilities are monetary in nature. Management believes the impact of inflation on financial results depends upon the Company's ability to react to changes in interest rate and, by such reaction, reduce the inflationary impact on performance. Interest rates do not necessarily move in the same direction at the same time, or at the same magnitude, as the prices of other goods and services. As discussed previously, management relies on its ability to manage the relationship between interest-sensitive assets and liabilities to protect against wide interest rate fluctuations, including those resulting from inflation. Accounting Changes The FASB has issued SFAS No.121, Accounting for the Impairment of Long- Lived Assets to be Disposed Of. This Statement establishes guidance for recognizing and measuring impairment losses and requires that the carrying amount of impaired assets be reduced to fair value. Long-lived assets and certain identifiable intangibles must be reviewed for impairment whenever events indicate that the carrying amount of the assets may not be recoverable. SFAS No.121 was effective in 1996 for the Company. The adoption of SFAS No.121 did not have any material effect on results of operation or financial condition in 1996. SFAS No.122, Accounting for Mortgage Servicing Rights, pertains to mortgage banking and financial institutions that conduct operations that are substantially similar to the primary operations of a mortgage banking enterprise. The Statement eliminates the accounting distinction between mortgage servicing rights that are acquired through loan origination activities and those acquired through purchase transactions. Under this Statement, if the Company enters into mortgage banking activities and sells or securitizes loans and retains the mortgage servicing rights, the Company must allocate the total cost of the mortgage loans to the mortgage servicing rights and the loans (without the rights) based on their relative fair values. SFAS No.122 was effective for the Company in 1996. Since the Company does not currently engage in mortgage banking activities, the adoption of this Statement did not have any material effect on 1996 operations or financial position. SFAS No.123, Stock Based Compensation, was effective for the Company in 1996. This Statement requires expanded disclosures rather than recognition of compensation cost as was originally required by the exposure draft of this Statement for fixed, at the money, options. However, employers are encouraged to recognize the cost of stock-based compensation plans in their financial statements. Currently, the Company has no stock-based compensation plans and adoption of SFAS No.123 did not have any effect on 1996 financial statements. INDIANA UNITED BANCORP FORM 10-Q PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K a) The following exhibits are furnished in accordance with the provisions of Item 601 of Regulation S-K. 20: The Financial Report dated June 30, 1996 and furnished to Registrant's shareholders is attached to this Form 10-Q. b) No report on Form 8-K was filed during the quarter for which this Quarterly Report is filed. No other information is required to be filed under Part II of this form. INDIANA UNITED BANCORP FORM 10-Q SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. INDIANA UNITED BANCORP August 13, 1996 By:/s/Robert E. Hoptry Robert E. Hoptry Chairman and President August 13, 1996 By:/s/Jay B. Fager Jay B. Fager Chief Financial Officer Treasurer and Principal Accounting Officer INDIANA UNITED BANCORP FORM 10-Q EXHIBIT INDEX Exhibit Page 20 The Financial Report dated June 30, 1996 and furnished 25-29 to Registrant's shareholders is attached EX-27 2
9 This schedule contains summary information extracted from Condensed Balance Sheet and Statement of Income and is qualified in its entirety by reference to such financial statements. 12-MOS 3-MOS DEC-31-1996 DEC-31-1996 JUN-30-1996 JUN-30-1996 14,924 0 169 0 4,300 0 0 0 87,329 0 0 0 0 0 207,077 0 2,807 0 321,129 0 273,009 0 13,197 0 2,517 0 5,500 0 0 0 500 0 1,251 0 25,155 0 321,129 0 8,819 4,460 2,609 1,332 194 92 11,622 5,884 5,250 2,660 5,800 2,921 5,822 2,963 60 33 0 0 4,047 2,045 2,449 1,298 2,449 1,298 0 0 0 0 1,481 784 1.15 .61 1.15 .61 7.94 0 1,300 0 43 0 0 0 0 0 2,754 0 60 0 42 0 2,807 0 1,569 0 0 0 1,238 0
EX-20 3 GROWING RELATIONSHIPS Indiana United Bancorp Financial Report June 30, 1996 Dear Shareholders and Friends: Indiana United has extended its trend of improved performance through the first half of 1996. Second quarter net income is 30.6% ahead of the comparable 1995 period, while six month earnings are 28.3% better than a year ago. All key performance ratios for the second quarter and the six month period greatly exceed the similar periods in 1995. On a year to date comparison, our net interest margin improved 27 basis points, return on average assets improved 20 basis points and return on average common equity improved 180 basis points. In addition, our efficiency ratio improved from 69.17% to 61.73%. On a per share basis, net income for the quarter outpaced the prior year period by 35.6%. For the six month period, net income surpassed the first half of 1995 by 33.7% Year to date common dividends of $.40 per share are 25% higher than a year ago. Based upon our expectation that second half earnings will exceed first half results, the third quarter dividend, payable on September 20 to holders of record as of September 10, will be increased to $.21 per share. This increase is 23.5% above the $.17 per share paid in the third quarter of 1995. I remain confident we have established a solid foundation from which we will continue to enhance shareholder value as we pursue our strategic goals. Sincerely, /s/ Robert E. Hoptry Robert E. Hoptry Chairman and President July 8, 1996
CONSOLIDATED BALANCE SHEET (Dollars in thousands, except per share amounts) (Unaudited) June 30 1996 1995 Assets Cash and due from banks $ 14,924 $ 9,920 Federal funds sold 4,300 7,700 Interest-bearing deposits 169 147 Securities held to maturity 7,764 Securities available for sale 87,329 80,139 Loans 207,077 201,354 Less: Allowance for loan losses (2,807) (2,754) Net loans 204,270 197,546 Premises and equipment 5,959 5,837 Federal Home Loan Bank stock 1,138 1,138 Other assets 3,040 3,020 Total assets $321,129 $313,211 Liabilities Deposits Noninterest bearing $ 27,362 $ 27,673 Interest bearing 245,647 232,662 Total deposits 273,009 260,335 Short-term borrowings 13,197 15,986 Long-term debt 5,500 6,500 Other liabilities 2,517 3,007 Total liabilities 294,223 285,828 Shareholders' equity Preferred stock 500 2,000 Common stock 1,251 1,251 Surplus 10,677 10,677 Unrealized loss on securities available for sale (582) (22) Retained earnings 15,060 13,277 Total shareholders' equity 26,906 27,383 Total liabilities and shareholders' equity $321,129 $313,211 Return on average assets .96% .76% Return on average common equity 11.01 9.21 Tier I capital to total assets 8.45 8.62 Total capital to risk-adjusted assets 15.88 16.52
SHAREHOLDER INFORMATION Indiana United Bancorp is a community-focused Transfer Agent bank and savings and loan holding company Securities Transfer Department serving eastern and southern Indiana through Mid-America Bank of Louisville its subsidiaries, Union Bank and Trust 500 West Broadway, P.O. Box 1497 Company of Indiana, Greensburg, and Louisville, Kentucky 40202 Regional Federal Savings Bank, New Albany.
CONSOLIDATED STATEMENT OF INCOME (Dollar amounts in thousands, except per share amounts) (Unaudited) Three months ended Six months ended June 30, June 30, 1996 1995 1996 1995 Interest income Loans, including fees $4,460 $4,173 $ 8,819 $ 8,148 Investment securities 1,332 1,417 2,609 2,924 Other 92 68 194 71 Total interest income 5,884 5,658 11,622 11,143 Interest expense Deposits 2,660 2,560 5,250 4,882 Other 261 426 550 862 Total interest expense 2,921 2,986 5,800 5,744 Net interest income 2,963 2,672 5,822 5,399 Provision for loan losses 33 6 60 9 Net interest income after provision for loan losses 2,930 2,666 5,762 5,390 Noninterest income Securities gains - 10 - 11 Other operating income 413 420 734 769 Total noninterest income 413 430 734 780 Noninterest expense Salaries and employee benefits 1,145 1,113 2,260 2,242 Premises and equipment expense 377 369 759 750 Other expenses 523 621 1,028 1,274 Total noninterest expense 2,045 2,103 4,047 4,266 Income before income tax 1,298 993 2,449 1,904 Income tax expense 514 392 968 750 Net income $ 784 $ 601 $ 1,481 $ 1,154 Net income per common share $0.61 $0.45 $1.15 $0.86 Dividends per common share $0.20 $0.16 $0.40 $0.32 Avg common shares outstanding 1,250,897 1,250,897 1,250,897 1,250,897 Preferred stock dividends $ 16 $ 35 $ 42 $ 73
Common Stock Indiana United Bancorp's common stock is traded on the over-the-counter market and is listed on the NASDAQ exchange under the symbol "IUBC". Indiana United Bancorp is also listed on the National Market System tables in many daily papers under the symbol Ind Utd. Primary market makers are J.J.B. Hilliard/ W.L. Lyons, Inc.; and NatCity Investments, Inc.
Market Value Range and Dividends for Latest Four Quarters 1996 1996 1995 1995 Q2 Q1 Q4 Q3 High $25 1/2 $26 1/4 $28 $27 1/2 Low 23 1/4 24 1/4 25 19 1/2 Last sale 24 1/2 24 1/4 25 27 Dividends .20 .20 .20 .17
ORGANIZATION Indiana United Bancorp 201 N. Broadway, P.O. Box 87 Greensburg, IN 47240 (812) 663-0157 Officers Robert E. Hoptry Chairman and President Daryl R. Tressler Vice President Michael K. Bauer Vice President Jay B. Fager Treasurer and Chief Financial Officer Sue Fawbush Vice President and Secretary Dennis M. Flack Vice President, Director of Marketing and Training Dawn M. Schwering Marketing Coordinator Suzanne Kendall Auditor Directors William G. Barron Chairman and President Wm. G. Barron Enterprises Philip A. Frantz Attorney, Partner Coldren and Frantz Glenn D. Higdon President Marlin Enterprises, Inc. Robert E. Hoptry Chairman and President Indiana United Bancorp Martin G. Wilson Farmer Edward J. Zoeller President E.M. Cummings Veneer Subsidiaries Regional Federal Savings Bank Offices in New Albany, Jeffersonville Union Bank and Trust Company of Indiana Offices in Greensburg, Portland, Westport, Clarksburg, Redkey -----END PRIVACY-ENHANCED MESSAGE-----