iAB announces third quarter performance
Posted: Friday, October 21, 2016
Independent Alliance Banks, Inc. (OTCQX: IALB), the holding company of iAB Financial Bank, announced third quarter financial performance as of September 30, 2016. Net income for the first nine months of 2016 was $7.6 million, compared to $6.9 million in 2015, an increase of 10 percent. Improvement in net interest income was a result of loan growth and reduction in the cost of funds.
Additionally, interest rate swap fee income and growth in fiduciary and other nontraditional services attributed to an overall 26 percent growth in fee income. Third quarter financial performance resulted in net income of $2.6 million, compared to $2.7 million during the same period in 2015. The modest decline in quarterly earnings was mainly the result of negative provision expense in the third quarter of 2015. For the first nine months of 2016, earnings per share were $1.86 versus $1.69 last year.
Our third quarter highlights include: $46 million increase in September period-end total assets in 2016 vs. 2015; $56 million or 8.1% increase in total loans compared to 2015; $46.8 million or 5.8% increase in total deposits over 2015; 23% fee income as a % of total revenue through September compared to 20% in 2015; $36 closing market share price on 9/30/2016 compared to $26.25 in 2015, a 37% increase. They also had solid capital base for future growth with total equity at $124 million and a total risk-based capital ratio of 15.11%.
“Our growth in financial performance and strong credit and capital positions can be attributed to the company’s strategic focus by a dedicated, experienced iAB team,” stated Mike Marhenke, president and chief executive officer of IAB. “We are staying true to our community banking mission and vision for commitment to our customers.”