Indiana Business Bancorp has reported that net interest income for the third quarter ended September 30, 2008 was $717,726, an 11% increase from the third quarter of 2007. The increase is attributed to growth in the loan and investment portfolios. Net loss was $476,582 for the quarter, compared to a loss of $2,763 for the same period in 2007.
The company has recorded a year-to-date loss of $625,831, compared to a profit of $17,990 for the nine months ended September 30, 2007. The year-to-date loss is a result of the repossession and subsequent $627,000 write down of two separate real estate properties — an owner occupied retail facility and a multi-family housing project.
Assets increased almost 17% during the first nine months of 2008 from $79.88 million at year end 2007 to $93.18 million at September 30, 2008. At
September 30, 2008, gross loans totalled $78.51 million, up from $67.5 million at December 31, 2007. Deposits totalled $73.96 million, up from $64.89 million at December 31, 2007.
James Young, president and CEO of Indiana Business Bancorp, said: While we are disappointed to take back two real estate properties this year, events like this are to be expected during these difficult economic times. We will work hard and smart to upgrade and market these properties as well as pursue our legal avenues in an effort to recover as much of our loss as possible.
