GNADENHUTTEN, Ohio, Oct. 22 /PRNewswire-FirstCall/ -- Indian Village
Bancorp, Inc. (OTC Bulletin Board: IDVB), the holding company for Indian
Village Community Bank, today reported results for the three months ended
September 30, 2004.
    Net income for the three months ended September 30, 2004 totaled $78,000
compared to $122,000 for the same period in 2003, a decrease of $44,000, or
36.1%. Basic earnings per share were $0.21 and $0.34 for the three months
ended September 30, 2004 and September 30, 2003, respectively.  Diluted
earnings per share were $0.21 and $0.33 for the three months ended September
30, 2004 and September 30, 2003, respectively.
    Net interest income after the provision for loan losses for the three
months ended September 30, 2004 totaled $547,000 as compared to $479,000 for
the same period in 2003, an increase of $68,000, or 14.2%. Total interest
income was $1.3 million for the three months ended September 30, 2004, a
$61,000 increase from the same three months period in 2003. Total interest
income increased primarily because of the increase in net loans offset by a
decrease in securities available for sale.  Interest expense for the three
months ended September 30, 2004 was $768,000, a $7,000 decrease from the same
period one year prior.  Interest expense decreased due to a decrease in
borrowings.  The provision for loan losses for the three months ended
September 30, 2004 and September 30, 2003 was $30,000.
    Non-interest income for the three months ended September 30, 2004 was
$55,000, compared to $84,000 for the same period in 2003, a decrease of
$29,000.  The decrease in non-interest income was primarily attributed to a
decrease in realized gains on sales of securities.  Non-interest expense for
the three months ended September 30, 2004 was $521,000, a $86,000 increase
from the same period in 2003.  The primary factors contributing to the
increase in non-interest expense was the increase in salaries and employee
benefits, occupancy and equipment, and other expenses.  Other expenses
primarily increased due to several ongoing projects the Bank is undertaking to
improve customer service, including offering check imaging to our customers,
changing our debit card/ATM processing and offering a fully operational web-
site to our customers by the end of fiscal 2005.
    At September 30, 2004 total assets were $99.9 million compared to
$99.6 million at June 30, 2004, an increase of $262,000, or 0.3%.  Securities
available for sale decreased to $30.6 million at September 30, 2004 from
$37.3 million at June 30, 2004, a decrease of $6.7 million, or 18.0%.  Net
loans receivable increased to $57.4 million at September 30, 2004 from
$53.9 million at June 30, 2004, an increase of $3.4 million, or 6.4%.  The
increase in net loans receivable consists primarily of an increase in consumer
and residential loans.  Deposits increased to $62.0 million at September 30,
2004 from $60.5 million at June 30, 2004, an increase of $1.4 million, or
2.4%.  The increase in total deposits consists primarily of an increase to
certificates of deposit offset by a decrease in non-interest bearing demand
deposit accounts.  Borrowings from the FHLB totaled $28.8 million at
September 30, 2004, compared to $30.5 million at June 30, 2004, a decrease of
$1.8 million, or 5.8%.
    Non-performing assets consisted of $174,000 of nonaccrual loans at
September 30, 2004, or 0.2% of total assets, a decrease of $411,000 from June
30, 2004. The nonaccrual loans consist solely of residential loans.  The
allowance for loan losses totaled $212,000 at September 30, 2004, representing
121.8% of nonaccrual loans and 0.37% of gross loans receivable. At June 30,
2004 the allowance for loan losses totaled $237,000 and represented 40.5% of
nonaccrual loans and 0.44% of gross loans receivable.
    Total equity was $8.2 million at September 30, 2004, compared to
$7.4 million at June 30, 2004.  The increase in equity was the result of an
increase in accumulated other comprehensive income and net income.  At
September 30, 2004 book value per share was $22.53.  At September 30, 2004,
the Bank exceeded all regulatory capital requirements to be categorized as
"well capitalized" under applicable law and regulations.
    This press release contains certain forward-looking statements within the
meaning of the federal securities laws.  The Company intends such forward-
looking statements to be covered by the safe harbor provisions for forward-
looking statements contained in the Private Securities Reform Act of 1995, and
is including this statement for purposes of these safe harbor provisions.
Forward-looking statements, which are based on certain assumptions and
describe future plans, strategies and expectations of the Company, are
generally identified by use of the words "believe," "expect," "intend,"
"anticipate," "estimate," "project," or similar expressions.  The Company's
ability to predict results or actual effect of future plans or strategies is
inherently uncertain.  Factors which could have a material effect on the
operations of the Company and the subsidiaries include, but are not limited
to, changes in: interest rates, general economic conditions,
legislative/regulatory changes, monetary and fiscal policies of the U.S.
Government, including policies of the U.S. Treasury and the Federal Reserve
Board, the quality or composition of the loan or investment portfolios, demand
for loan products, deposit flows, competition, demand for financial services
in the Company's market area and accounting principles and guidelines.  These
risks and uncertainties should be considered in evaluating forward-looking
statements and undue reliance should not be placed on such statements.  Except
as required by law or regulation, the Company disclaims any obligation to
update such forward-looking statements.
    Indian Village Bancorp, Inc. is headquartered at 100 South Walnut Street,
Gnadenhutten, Ohio 44629.


               Selected Financial Condition and Operating Data
                 (Dollars in thousands except per share data)
                                 (Unaudited)

                                              September 30,       June 30,
                                                  2004              2004

          Total Assets                          $99,906           $99,644
          Loans receivable, net                  57,355            53,915
          Investment Securities                  30,571            37,288
          Deposits                               61,983            60,541
          Total borrowings                       28,758            30,542
          Total equity                            8,248             7,422
          Book value per share                   $22.53  (1)       $20.32 (1)
          Common shares outstanding             393,215           392,755


                                                    Three Months Ended
                                              September 30,     September 30,
                                                  2004              2003

          Interest Income                        $1,345            $1,284
          Interest Expense                          768               775
          Provision for loan losses                  30                30
          Net interest income                       547               479
          Non-interest income                        55                84
          Non-interest expense                      521               435
          Income before taxes                        81               128
          Income tax expense                          3                 6
          Net income                                 78               122
          Earnings per share (basic)              $0.21             $0.34
          Earnings per share (diluted)            $0.21             $0.33

     (1)  Represents total equity divided by outstanding number of common
          shares at each respective period end.  ESOP shares are considered
          outstanding for this calculation unless unearned.

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