Independent Community Bankshares, Inc. Announces First Quarter 2001 Earnings

Apr 18, 2001, 01:00 ET from Independent Community Bankshares, Inc.

    MIDDLEBURG, Va., April 18 /PRNewswire/ -- Independent Community
 Bankshares, Inc. (Nasdaq:   ICBX) reported net income of $1.3 million or $.73
 per diluted share for the three months ended March 31, 2001.  This is an 18.8%
 increase compared to $1.1 million or $.61 per diluted share for the three
 months ended March 31, 2000.  Net interest income increased 7.9% from $2.9
 million for the three months ended March 31, 2000 to $3.1 million for the same
 time period in 2001.  The current interest rate environment provided
 management with opportunities to improve the performance of the investment
 portfolio by bringing in $252,000 ($166,000 net of tax) of net gains during
 the first quarter of 2001.  The effect on diluted earnings per share is
 presented in the table below.
 
                                                        For the Quarter Ended
                                                              March 31,
                                                        2001           2000
 
     Core Operations                                    $0.60          $0.62
     Security gains (losses)                             0.14             --
     Amortization expenses                              (0.01)         (0.01)
       Net Income per diluted share                     $0.73          $0.61
 
     The net interest margin was 5.16% for the three months ended March 31,
 2001, a decrease of 45 basis points compared to 5.61% for the three months
 ended March 31, 2000.  The net interest margin was 5.34% of the year ended
 December 31, 2000.  Average earnings assets increased $48.1 million to $268.8
 million at March 31, 2001 from $220.7 million at March 31, 2000.   During that
 same time period the funding mix for the growth in earning assets changed
 slightly to more reliance on borrowed money rather than low cost deposits
 causing a decrease in the net interest margin.  The effect of this change in
 funding mix was largely recognized over the past twelve months and deposit
 growth during the first quarter of 2001 has funded asset growth.
     Non-interest income for the three months ended March 31, 2001 increased
 36.77% to $1.2 million from $854,000 for the three months ended March 31,
 2000.   Fees from mortgage originations increased 109.84% to $299,000 for the
 three months ended March 31, 2001.  Fees from investment sales increased to
 $186,000 for the three months ended March 31, 2001 compared to $7,000 for the
 same time period in 2000.
     Fees from fiduciary services generated by the Tredegar Trust Company,
 ICBX's trust and investment management subsidiary, were $358,000 for the three
 months ended March 31, 2001.  For the three months ended March 31, 2000 fees
 from fiduciary services were $366,000.
     Non-interest expense increased 24.49% to $2.7 million for the three months
 ended March 31, 2001 from $2.2 million for the three months ended March 31,
 2000.  Salary and benefit expense increased 22.31% to $1.6 million for the
 three months ended March 31, 2001 from $1.3 million for the same time period
 in 2000.  The bank has increased its staffing both in business development and
 operations to support the significant growth of the company.  Commissions paid
 to employees for fee related business, such as mortgage originations and
 investment sales have increased by $142,000 to $180,000 as a result in the
 increase in sales volume.
     Total assets increased 17.73% to $297.8 million at March 31, 2001 from
 $253.0 million at March 31, 2000.  The return on average assets(1) was 1.67%
 for the three months ended March 31, 2001.  Loans increased 20.90% since March
 31, 2000 to $176.6 million at March 31, 2001.  The average yield on the loan
 portfolio was 8.64% for the three months ended March 31, 2001, an increase of
 5 basis points for the same time period in 2000.  Non-performing loans
 decreased $303,000 to $89,000 or 0.05% of total loans at March 31, 2001.  The
 loan loss provision was $75,000 for the three months ended March 31, 2001 and
 2000.  The allowance for loan losses was $1.9 million or 1.04% of total loans
 outstanding.  Net charge-offs for the three months ended March 31, 2001 were
 .01% of total loans outstanding at March 31, 2001.  At March 31, 2001 ICBX had
 only $13,000 of loans 90 days or more past due.
     The investment securities portfolio was $81.3 million at March 31, 2001
 and $81.6 million at March 31, 2000.  The investment portfolio, which was
 classified as available for sale, had an unrealized gain on of $1.4 million at
 March 31, 2001 compared to a $2.8 million unrealized loss at March 31, 2000.
 The tax equivalent yield on the investment portfolio was 7.29% for the three
 months ended March 31, 2001, a decrease of 6 basis points from 7.35% for the
 three months ended March 31, 2000.
     Deposits increased 13.61% or $27.8 million to $232.6 million at March 31,
 2001 from $204.8 million at March 31, 2000.  The average cost of interest
 bearing deposits was 3.65% for the three months ended March 31, 2001, an
 increase of 50 basis points over the average cost of interest bearing deposits
 for the three months ended March 31, 2000.  Securities sold under agreement to
 repurchase with commercial checking account customers increased $2.2 million
 to $13.0 million at March 31, 2001.  Federal Home Loan Bank advances were
 $20.0 million at March 31, 2001, an increase of $15.0 million from the $5.0
 million outstanding at March 31, 2000.  The total cost of funds increased 61
 basis points from 2.65% to 3.26% for the three months ended March 31, 2000 and
 2001, respectively.
     Shareholders' equity was $28.7 million at March 31, 2001, an increase of
 26.98% over the March 31, 2000 balance of $22.6 million.  The increase in
 unrealized market value of the investment securities available for sale
 increased shareholders' equity by $4.2 million.  The return on average
 equity(1) was 17.06% for the three months ended December 31, 2001 compared to
 18.98% for the three months ended March 31, 2000.  The book value of ICBX at
 March 31, 2001 was $16.47 per common share.  Total common shares outstanding
 at March 31, 2001 were 1,739,247.
     The board of directors of Independent Community Bankshares, Inc. announces
 a $.25 per common share cash dividend for shareholders on record as of April
 4, 2001 and payable on April 20, 2001.
 
     Certain information contained in this discussion may include "forward-
 looking statements" within the meaning of Section 27A of the Securities Act of
 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
 amended.  These forward-looking statements are generally identified by phrases
 such as "the Company expects," "the Company believes" or words of similar
 import.  Such forward-looking statements involve known and unknown risks
 including, but not limited to, changes in general economic and business
 conditions, interest rate fluctuations, competition within and from outside
 the banking industry, new products and services in the banking industry, risks
 inherent in making loans such as repayment risks and fluctuating collateral
 values, changing trends in customer profiles and changes in laws and
 regulations applicable to the Company.  Although the Company believes that its
 expectations with respect to the forward-looking statements are based upon
 reliable assumptions within the bounds of its knowledge of its business and
 operations, there can be no assurance that actual results, performance or
 achievements of the Company will not differ materially from any future
 results, performance or achievements expressed or implied by such forward-
 looking statements.
 
     Independent Community Bankshares, Inc. is headquartered in Middleburg,
 Virginia and has two wholly owned subsidiaries, The Middleburg Bank and The
 Tredegar Trust Company as well as an affiliation with Gilkison Patterson
 Investment Advisors, Inc.  The Middleburg Bank serves Loudoun County, Virginia
 with 5 branches.  The Tredegar Trust Company is headquartered in Richmond,
 Virginia with a branch office in Middleburg, Virginia.  Gilkison Patterson
 Investment Advisors, Inc. (GPIA) is an investment management firm located in
 Alexandria, Virginia.  Assets under management by GPIA currently exceed $600
 million.  ICBX has the right to acquire GPIA after July 1, 2001.
 
     (1) Net securities gains were not annualized in this calculation.
 
 
                       INDEPENDENT COMMUNITY BANKSHARES, INC.
                                 FINANCIAL SUMMARY
 
     (dollars in thousands,                     For the Quarter Ended
      except per share data)                          March 31,
                                                                        %
                                        2001            2000        Change
     SUMMARY OF OPERATIONS
     Interest Income - Loans          $3,976          $3,148         26.3%
     Interest Income - Investment
      & Other                          1,273           1,178          8.1%
     Interest Expense -
      Deposits                         1,521           1,234         23.3%
     Interest Expense -
      Other Borrowings                   608             200        204.0%
       Net Interest Income            $3,120          $2,892          7.9%
     Provision for loan losses            75              75          0.0%
       Net Interest Income
        After Provision
        for loan losses               $3,045          $2,817          8.1%
     Non-Interest Income               1,168             854         36.8%
     Net Securities Gains (Losses)       252              --
     Non-Interest Expense              2,741           2,202         24.5%
       Income Before Taxes            $1,724          $1,469         17.4%
     Income Taxes                        432             381         13.4%
     Net Income                       $1,292          $1,088         18.8%
 
     PER SHARE DATA
     Net Income - Basic                $0.74           $0.61
     Net Income - Diluted              $0.73           $0.61
     Cash Dividends                    $0.25           $0.21
     Book Value                       $16.47          $13.09
     Common Shares Outstanding     1,739,247       1,721,209
     Average Shares Outstanding,
      Basic                        1,739,247       1,777,972
     Average Shares Outstanding,
      Diluted                      1,762,283       1,793,020
 
     PROFITABILITY RATIOS
     Return on Average Assets          1.67%           1.81%
     Return on Average Equity         17.06%          18.98%
     Net Interest Margin
      (tax equivalent basis)           5.16%           5.61%
     Efficiency Ratio                 60.61%          56.14%
     Dividend Payout                  33.64%          34.43%
 
     CAPITAL RATIOS
     Leverage Ratio                    9.10%           9.73%
     Risk-Based Capital Ratios
       Tier 1 Capital Ratio           12.59%          13.16%
       Total Capital Ratio            13.48%          14.00%
     Equity to Assets                  9.62%           8.92%
     Tangible Equity to
      Tangible Assets                  9.21%           8.54%
     Loans to Deposits                76.94%          72.86%
 
     ASSET QUALITY
     Non-Performing Loans                $89            $392        -77.3%
     Loans Past Due 90 Days or More        4              --
     Allowance for Loan Losses         1,866           1,492         25.1%
     Net Charge-offs                      13              37        -64.9%
     Non-Performing Loans to Loans     0.05%           0.27%        -81.4%
     Allowance for Loan Losses
      to Loans                         1.04%           1.01%          3.2%
     Net Charge-offs to
      Average Loans                    0.01%           0.03%        -50.0%
     Allowance for Loan Losses to
     Non-Performing Loans           2096.63%         380.61%        450.9%
 
     AVERAGE BALANCES
     Investment Securities
      Portfolio                      $81,887         $69,850        17.23%
     Loans                           184,105         144,194        27.68%
     Earning Assets                  268,826         220,722        21.79%
     Assets                          289,155         240,220        20.37%
     Deposits                        220,313         200,511         9.88%
     Stockholders' Equity             28,308          22,941        23.39%
 
     SELECTED FINANCIAL DATA AT PERIOD END
     Investment Securities
      Portfolio                       81,262          81,687        -0.52%
     Loans, net of allowance
      for loan losses                176,631         146,094        20.90%
     Earning Assets                  273,679         234,682        16.62%
     Assets                          297,817         252,970        17.73%
     Deposits                        232,649         204,778        13.61%
     Stockholders' Equity             28,651          22,564        26.98%
 
 

SOURCE Independent Community Bankshares, Inc.
    MIDDLEBURG, Va., April 18 /PRNewswire/ -- Independent Community
 Bankshares, Inc. (Nasdaq:   ICBX) reported net income of $1.3 million or $.73
 per diluted share for the three months ended March 31, 2001.  This is an 18.8%
 increase compared to $1.1 million or $.61 per diluted share for the three
 months ended March 31, 2000.  Net interest income increased 7.9% from $2.9
 million for the three months ended March 31, 2000 to $3.1 million for the same
 time period in 2001.  The current interest rate environment provided
 management with opportunities to improve the performance of the investment
 portfolio by bringing in $252,000 ($166,000 net of tax) of net gains during
 the first quarter of 2001.  The effect on diluted earnings per share is
 presented in the table below.
 
                                                        For the Quarter Ended
                                                              March 31,
                                                        2001           2000
 
     Core Operations                                    $0.60          $0.62
     Security gains (losses)                             0.14             --
     Amortization expenses                              (0.01)         (0.01)
       Net Income per diluted share                     $0.73          $0.61
 
     The net interest margin was 5.16% for the three months ended March 31,
 2001, a decrease of 45 basis points compared to 5.61% for the three months
 ended March 31, 2000.  The net interest margin was 5.34% of the year ended
 December 31, 2000.  Average earnings assets increased $48.1 million to $268.8
 million at March 31, 2001 from $220.7 million at March 31, 2000.   During that
 same time period the funding mix for the growth in earning assets changed
 slightly to more reliance on borrowed money rather than low cost deposits
 causing a decrease in the net interest margin.  The effect of this change in
 funding mix was largely recognized over the past twelve months and deposit
 growth during the first quarter of 2001 has funded asset growth.
     Non-interest income for the three months ended March 31, 2001 increased
 36.77% to $1.2 million from $854,000 for the three months ended March 31,
 2000.   Fees from mortgage originations increased 109.84% to $299,000 for the
 three months ended March 31, 2001.  Fees from investment sales increased to
 $186,000 for the three months ended March 31, 2001 compared to $7,000 for the
 same time period in 2000.
     Fees from fiduciary services generated by the Tredegar Trust Company,
 ICBX's trust and investment management subsidiary, were $358,000 for the three
 months ended March 31, 2001.  For the three months ended March 31, 2000 fees
 from fiduciary services were $366,000.
     Non-interest expense increased 24.49% to $2.7 million for the three months
 ended March 31, 2001 from $2.2 million for the three months ended March 31,
 2000.  Salary and benefit expense increased 22.31% to $1.6 million for the
 three months ended March 31, 2001 from $1.3 million for the same time period
 in 2000.  The bank has increased its staffing both in business development and
 operations to support the significant growth of the company.  Commissions paid
 to employees for fee related business, such as mortgage originations and
 investment sales have increased by $142,000 to $180,000 as a result in the
 increase in sales volume.
     Total assets increased 17.73% to $297.8 million at March 31, 2001 from
 $253.0 million at March 31, 2000.  The return on average assets(1) was 1.67%
 for the three months ended March 31, 2001.  Loans increased 20.90% since March
 31, 2000 to $176.6 million at March 31, 2001.  The average yield on the loan
 portfolio was 8.64% for the three months ended March 31, 2001, an increase of
 5 basis points for the same time period in 2000.  Non-performing loans
 decreased $303,000 to $89,000 or 0.05% of total loans at March 31, 2001.  The
 loan loss provision was $75,000 for the three months ended March 31, 2001 and
 2000.  The allowance for loan losses was $1.9 million or 1.04% of total loans
 outstanding.  Net charge-offs for the three months ended March 31, 2001 were
 .01% of total loans outstanding at March 31, 2001.  At March 31, 2001 ICBX had
 only $13,000 of loans 90 days or more past due.
     The investment securities portfolio was $81.3 million at March 31, 2001
 and $81.6 million at March 31, 2000.  The investment portfolio, which was
 classified as available for sale, had an unrealized gain on of $1.4 million at
 March 31, 2001 compared to a $2.8 million unrealized loss at March 31, 2000.
 The tax equivalent yield on the investment portfolio was 7.29% for the three
 months ended March 31, 2001, a decrease of 6 basis points from 7.35% for the
 three months ended March 31, 2000.
     Deposits increased 13.61% or $27.8 million to $232.6 million at March 31,
 2001 from $204.8 million at March 31, 2000.  The average cost of interest
 bearing deposits was 3.65% for the three months ended March 31, 2001, an
 increase of 50 basis points over the average cost of interest bearing deposits
 for the three months ended March 31, 2000.  Securities sold under agreement to
 repurchase with commercial checking account customers increased $2.2 million
 to $13.0 million at March 31, 2001.  Federal Home Loan Bank advances were
 $20.0 million at March 31, 2001, an increase of $15.0 million from the $5.0
 million outstanding at March 31, 2000.  The total cost of funds increased 61
 basis points from 2.65% to 3.26% for the three months ended March 31, 2000 and
 2001, respectively.
     Shareholders' equity was $28.7 million at March 31, 2001, an increase of
 26.98% over the March 31, 2000 balance of $22.6 million.  The increase in
 unrealized market value of the investment securities available for sale
 increased shareholders' equity by $4.2 million.  The return on average
 equity(1) was 17.06% for the three months ended December 31, 2001 compared to
 18.98% for the three months ended March 31, 2000.  The book value of ICBX at
 March 31, 2001 was $16.47 per common share.  Total common shares outstanding
 at March 31, 2001 were 1,739,247.
     The board of directors of Independent Community Bankshares, Inc. announces
 a $.25 per common share cash dividend for shareholders on record as of April
 4, 2001 and payable on April 20, 2001.
 
     Certain information contained in this discussion may include "forward-
 looking statements" within the meaning of Section 27A of the Securities Act of
 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
 amended.  These forward-looking statements are generally identified by phrases
 such as "the Company expects," "the Company believes" or words of similar
 import.  Such forward-looking statements involve known and unknown risks
 including, but not limited to, changes in general economic and business
 conditions, interest rate fluctuations, competition within and from outside
 the banking industry, new products and services in the banking industry, risks
 inherent in making loans such as repayment risks and fluctuating collateral
 values, changing trends in customer profiles and changes in laws and
 regulations applicable to the Company.  Although the Company believes that its
 expectations with respect to the forward-looking statements are based upon
 reliable assumptions within the bounds of its knowledge of its business and
 operations, there can be no assurance that actual results, performance or
 achievements of the Company will not differ materially from any future
 results, performance or achievements expressed or implied by such forward-
 looking statements.
 
     Independent Community Bankshares, Inc. is headquartered in Middleburg,
 Virginia and has two wholly owned subsidiaries, The Middleburg Bank and The
 Tredegar Trust Company as well as an affiliation with Gilkison Patterson
 Investment Advisors, Inc.  The Middleburg Bank serves Loudoun County, Virginia
 with 5 branches.  The Tredegar Trust Company is headquartered in Richmond,
 Virginia with a branch office in Middleburg, Virginia.  Gilkison Patterson
 Investment Advisors, Inc. (GPIA) is an investment management firm located in
 Alexandria, Virginia.  Assets under management by GPIA currently exceed $600
 million.  ICBX has the right to acquire GPIA after July 1, 2001.
 
     (1) Net securities gains were not annualized in this calculation.
 
 
                       INDEPENDENT COMMUNITY BANKSHARES, INC.
                                 FINANCIAL SUMMARY
 
     (dollars in thousands,                     For the Quarter Ended
      except per share data)                          March 31,
                                                                        %
                                        2001            2000        Change
     SUMMARY OF OPERATIONS
     Interest Income - Loans          $3,976          $3,148         26.3%
     Interest Income - Investment
      & Other                          1,273           1,178          8.1%
     Interest Expense -
      Deposits                         1,521           1,234         23.3%
     Interest Expense -
      Other Borrowings                   608             200        204.0%
       Net Interest Income            $3,120          $2,892          7.9%
     Provision for loan losses            75              75          0.0%
       Net Interest Income
        After Provision
        for loan losses               $3,045          $2,817          8.1%
     Non-Interest Income               1,168             854         36.8%
     Net Securities Gains (Losses)       252              --
     Non-Interest Expense              2,741           2,202         24.5%
       Income Before Taxes            $1,724          $1,469         17.4%
     Income Taxes                        432             381         13.4%
     Net Income                       $1,292          $1,088         18.8%
 
     PER SHARE DATA
     Net Income - Basic                $0.74           $0.61
     Net Income - Diluted              $0.73           $0.61
     Cash Dividends                    $0.25           $0.21
     Book Value                       $16.47          $13.09
     Common Shares Outstanding     1,739,247       1,721,209
     Average Shares Outstanding,
      Basic                        1,739,247       1,777,972
     Average Shares Outstanding,
      Diluted                      1,762,283       1,793,020
 
     PROFITABILITY RATIOS
     Return on Average Assets          1.67%           1.81%
     Return on Average Equity         17.06%          18.98%
     Net Interest Margin
      (tax equivalent basis)           5.16%           5.61%
     Efficiency Ratio                 60.61%          56.14%
     Dividend Payout                  33.64%          34.43%
 
     CAPITAL RATIOS
     Leverage Ratio                    9.10%           9.73%
     Risk-Based Capital Ratios
       Tier 1 Capital Ratio           12.59%          13.16%
       Total Capital Ratio            13.48%          14.00%
     Equity to Assets                  9.62%           8.92%
     Tangible Equity to
      Tangible Assets                  9.21%           8.54%
     Loans to Deposits                76.94%          72.86%
 
     ASSET QUALITY
     Non-Performing Loans                $89            $392        -77.3%
     Loans Past Due 90 Days or More        4              --
     Allowance for Loan Losses         1,866           1,492         25.1%
     Net Charge-offs                      13              37        -64.9%
     Non-Performing Loans to Loans     0.05%           0.27%        -81.4%
     Allowance for Loan Losses
      to Loans                         1.04%           1.01%          3.2%
     Net Charge-offs to
      Average Loans                    0.01%           0.03%        -50.0%
     Allowance for Loan Losses to
     Non-Performing Loans           2096.63%         380.61%        450.9%
 
     AVERAGE BALANCES
     Investment Securities
      Portfolio                      $81,887         $69,850        17.23%
     Loans                           184,105         144,194        27.68%
     Earning Assets                  268,826         220,722        21.79%
     Assets                          289,155         240,220        20.37%
     Deposits                        220,313         200,511         9.88%
     Stockholders' Equity             28,308          22,941        23.39%
 
     SELECTED FINANCIAL DATA AT PERIOD END
     Investment Securities
      Portfolio                       81,262          81,687        -0.52%
     Loans, net of allowance
      for loan losses                176,631         146,094        20.90%
     Earning Assets                  273,679         234,682        16.62%
     Assets                          297,817         252,970        17.73%
     Deposits                        232,649         204,778        13.61%
     Stockholders' Equity             28,651          22,564        26.98%
 
 SOURCE  Independent Community Bankshares, Inc.