SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________________ to ___________________
Commission file number 0-12422
INDIANA UNITED BANCORP
RETIREMENT AND SAVINGS INCENTIVE PLAN
(Full title of the plan)
INDIANA UNITED BANCORP
(Name of issuer of the securities held pursuant to the plan)
201 North Broadway
Greensburg, Indiana 47240
(Address of principal executive office)
<PAGE>
INDIANA UNITED BANCORP
RETIREMENT AND SAVINGS INCENTIVE PLAN
FORM 11-K
December 31, 1996
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees have duly caused this report to be signed on their behalf
by the undersigned, thereunto duly authorized.
INDIANA UNITED BANCORP
RETIREMENT AND SAVINGS
INCENTIVE PLAN
Date: June 16, 1997 BY: /s/ Daniel F. Anderson
Daniel F. Anderson
Trust Officer,
Union Bank and Trust
Company of Indiana.
Trustee
<PAGE>
Exhibit Index
Number Exhibit Page
23 Consent of independent certified 18
public accountants
<PAGE>
INDIANA UNITED BANCORP
Retirement and Savings Incentive Plan
Financial Statements
December 31, 1996 and 1995
With Supplemental Schedules
<PAGE>
Indiana United Bancorp
Retirement and Savings Incentive Plan
Table of Contents
Page
Independent Auditor's Report 6
Financial Statements
Statement of net assets available for benefits 7
Statement of changes in net assets available for benefits 8
Notes to financial statements 9
Supplemental Schedules
Item 27a-Schedule of assets held for investment purposes 15
Item 27d-Schedule of reportable transactions 17
<PAGE>
Independent Auditor's Report
Administrative Committee
Indiana United Bancorp
Retirement and Savings Incentive Plan
Greensburg, Indiana
We have audited the accompanying statement of net assets
available for benefits of Indiana United Bancorp Retirement
and Savings Incentive Plan as of December 31, 1996 and 1995,
and the related statement of changes in net assets available
for benefits for the years then ended. These financial
statements are the responsibility of the Plan's management.
Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management,
as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets
available for benefits of Indiana United Bancorp Retirement
and Savings Incentive Plan at December 31, 1996 and 1995, and
the changes in its net assets available for benefits for the
years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on
the financial statements taken as a whole. The supplemental
schedules as listed in the accompanying table of contents are
presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are
supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974.
The supplemental schedules have been subjected to the auditing
procedures applied in the audits of the basic financial
statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial
statements taken as a whole.
Geo. S. Olive & Co. LLC
Indianapolis, Indiana
May 28, 1997
<PAGE>
Indiana United Bancorp
Retirement and Savings Incentive Plan
Statement of Net Assets Available for Benefits
<TABLE>
<CAPTION>
December 31 1996 1995
<S> <C> <C>
Assets
Investments, at fair value
U.S. Treasury and federal agency obligations $ 960,972 $1,182,007
Federated trust-U. S. Treasury obligations 111,617
Mutual funds 256,883
Common stocks 330,375 180,146
Certificates of deposit 295,350 300,000
Party-in-interest investments
Money market accounts 355,472 88,357
Certificates of deposit 100,000
Company common stock 1,597,362 1,302,300
Participant loans 13,165 20,765
Total investments 3,909,579 3,185,192
Employer contributions receivable 606 215,737
Accrued income receivable 20,146 19,393
Cash 4,728 7,896
Total assets 3,935,059 3,428,218
Liabilities-other 491
Net Assets Available for Benefits $3,935,059 $3,427,727
</TABLE>
See notes to financial statements.
<PAGE>
Indiana United Bancorp
Retirement and Savings Incentive Plan
Statement of Changes in Net Assets Available
for Benefits
<TABLE>
<CAPTIONS>
Year Ended December 31 1996 1995
<S> <C> <C>
Additions
Investment income
Net appreciation in fair
value of investments $ 282,586 $ 333,725
Interest and dividends 169,105 152,931
Net investment income 451,691 486,656
Employee contributions 170,883 160,613
Employer contributions 289,089 263,916
Rollover contributions 2,149 44,746
Total additions 913,812 955,931
Deductions-benefits paid to participants 406,480 966,814
Net Increase (Decrease) 507,332 (10,883)
Net Assets Available for Benefits,
Beginning of Year 3,427,727 3,438,610
Net Assets Available for Benefits,
End of Year $3,935,059 $3,427,727
</TABLE>
See notes to financial statements.
<PAGE>
Indiana United Bancorp
Retirement and Savings Incentive Plan
Notes to Financial Statements
Description of Plan
The following description of Indiana United Bancorp Retirement and
Savings Incentive Plan (Plan) provides only general information.
Participants should refer to the Plan agreement for a complete
description of the Plan's provisions.
General
The Plan is a defined-contribution plan sponsored by Indiana United
Bancorp (Company), and its affiliated employers, Union Bank and Trust
Company of Indiana (Union Bank) and Regional Federal Savings Bank, New
Albany, Indiana (Regional Bank) for the benefit of its eligible
employees. It is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA). Union Bank is the trustee of the
Plan.
Contributions
The Plan permits eligible employees through a savings incentive
election to make annual contributions of 2 to 8% of eligible
compensation for which the Company matched 70% of their contributions
for 1996 and 65% for 1995. The Company also contributed to the Plan
an amount equalling 5.7% of each participant's compensation in excess
of $62,700 and $61,200 for 1996 and 1995, plus 6.5% of each
participant's total compensation for the year. Certain employee
rollover contributions are also permitted. Company contributions are
discretionary. Forfeitures are used to reduce Company contributions.
Participant-Directed Program
Each participant has the option of directing his savings incentive
contributions into a fund which may purchase Company stock (Fund C),
or another fund with other investments (Fund B).
Company matching contributions subsequent to January 1, 1992 shall be
directed to Fund C.
Participant Accounts
Each participant's account is credited with the participant's
contribution and allocation of the Company's contribution and Plan
earnings. Allocations are based on participant earnings or account
balances, as defined. The benefit to which a participant is entitled
is the benefit that can be provided from the participant's account.
Vesting
Participants are immediately vested in their voluntary contributions
plus actual earnings thereon. Vesting in the remainder of their
accounts is based on years of continuous service. A participant is
100% vested after seven years of credited service. Certain other
events could result in earlier vesting of benefits.
<PAGE>
Indiana United Bancorp
Retirement and Savings Incentive Plan
Notes to Financial Statements
Payment of Benefits
Upon termination of employment or retirement, the standard method of
distribution for an unmarried participant is a monthly pension payable
for the lifetime of such participant. The standard method of
distribution for a married participant shall be in the form of a
qualified joint and survivor annuity. There are other optional
methods of distribution which can be elected by participants and the
employer also has the option to distribute small accounts through a
lump-sum payment to participants following the participant's
termination of employment.
Loans
The plan agreement includes provisions authorizing loans from the Plan
to active eligible participants. Each participant may have one loan
not to exceed the lesser of the participant's savings incentive
account or 50% of the vested account balance. Loans are repayable
over a period not to exceed five years through periodic payments.
Plan Termination
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of ERISA. In the
event of plan termination, participants will become 100% vested in
their accounts.
Summary of Significant Accounting Policies
Method of Accounting
The accompanying financial statements are prepared on the accrual
method of accounting.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of net assets and
changes in net assets available for benefits. Actual results could
differ from those estimates.
Investments
Investments are valued at quoted market price and prices established
by local security brokers. Certificates of deposit and certain other
investments are valued at cost, which approximates market. Purchases
and sales of securities are recorded on a trade-date basis.
Payment of Benefits
Benefits are recorded when paid.
Administrative Expenses
Administrative expenses are paid by the Company.
<PAGE>
Indiana United Bancorp
Retirement and Savings Incentive Plan
Notes to Financial Statements
Investments
The Plan's investments are held by Union Bank. The Plan's investments
(including investments bought, sold, and held during the year)
appreciated (depreciated) in fair value as follows:
<TABLE>
<CAPTION>
1996
Net
Appreciation
(Depreciation) Fair Value
In Fair Value At End
Year Ended December 31 During Year Of Year
<S> <C> <C>
U. S. Government and federal agency securities $(22,766) $ 960,972
Common stocks 73,320 330,375
Mutual funds 12,432 256,883
Certificates of deposit 295,350
Party-in-interest investments
Money market accounts 355,472
Certificate of deposit 100,000
Company common stock 219,600 1,597,362
Participant loans 13,165
Totals $282,586 $3,909,579
</TABLE>
<TABLE>
<CAPTIONS>
1995
Net
Appreciation
(Depreciation) Fair Value
In Fair Value At End
Year Ended December 31 During Year Of Year
<S> <C> <C>
U. S. Government and federal agency securities $ 67,460 $1,182,007
Federated Trust-U. S. Treasury obligations 111,617
Corporate bonds (213)
Common stocks 57,349 180,146
Certificates of deposit 300,000
Party-in-interest investments
Money market accounts 88,357
Company common stock 209,129 1,302,300
Participant loans 20,765
Totals $333,725 $3,185,192
</TABLE>
<PAGE>
Indiana United Bancorp
Retirement and Savings Incentive Plan
Notes to Financial Statements
The fair value of individual investments that represented 5% or more
of the Plan's assets were as follows:
<TABLE>
<CAPTION>
December 31 1996 1995
<S> <C> <C>
Union Bank & Trust Company of
Indiana Money Market account $ 355,472
U. S. Treasury note, 5.125%, 4/30/98 287,009 $ 289,275
U. S. Treasury note, 7.75%, 1/31/00 184,610
Company common stock 1,597,362 1,302,300
Money Market accounts 355,472 88,357
</TABLE>
Net Assets by Participant-Directed and Nonparticipant-Directed
Investment Programs
<TABLE>
<CAPTION>
1996
Participant- Participant-
Directed for Directed for
Company Other Nonparticipant-
Stock Investments Directed Funds Loan
Year Ended December 31 (Fund C) (Fund B) (Fund A) Fund Total
<S> <C> <C> <C> <C> <C>
Additions
Investment income
Net appreciation
(depreciation) in
fair value of
investments $ 219,600 $ (6,163) $ 69,149 $ 282,586
Interest and dividends 47,300 34,340 87,465 169,105
Employee contributions 103,738 69,294 173,032
Employer contributions 110,758 178,331 289,089
Subtotal 481,396 97,471 334,945 913,812
Deductions-benefits paid
to participants 153,523 80,943 172,014 406,480
Net Increase Prior to
Interfund Transfers 327,873 16,528 162,931 507,332
Interfund Transfers 3,828 3,847 (75) $(7,600)
Net Increase (Decrease) 331,701 20,375 162,856 (7,600) 507,332
Net Assets Available for
Benefits, Beginning of
Year 1,369,990 451,701 1,585,271 20,765 3,427,727
Net Assets Available for
Benefits, End of Year $1,701,691 $472,076 $1,748,127 $13,165 $3,935,059
</TABLE>
<PAGE>
Indiana United Bancorp
Retirement and Savings Incentive Plan
Notes to Financial Statements
<TABLE>
<CAPTION>
1995
Participant- Participant-
Directed for Directed for
Company Other Nonparticipant-
Stock Investments Directed Funds Loan
(Fund C) (Fund B) (Fund A) Fund Total
<S> <C> <C> <C> <C> <C>
Additions
Investment income
Net appreciation in
fair value of
investments $ 209,691 $ 18,355 $ 105,679 $ 333,725
Interest and dividends 37,531 27,887 87,513 152,931
Employee contributions 114,337 91,022 205,359
Employer contributions 96,123 167,793 263,916
Subtotal 457,682 137,264 360,985 955,931
Deductions-benefits paid
to participants 290,877 93,808 582,129 966,814
Net Increase (Decrease)
Prior to Interfund
Transfers 166,805 43,456 (221,144) (10,883)
Interfund Transfers (10,235) (5,215) $15,450
Net Increase (Decrease) 156,570 38,241 (221,144) 15,450 (10,883)
Net Assets Available for
Benefits, Beginning of
Year 1,213,420 413,460 1,806,415 5,315 3,438,610
Net Assets Available for
Benefits, End of Year $1,369,990 $451,701 $1,585,271 $20,765 $3,427,727
</TABLE>
Party-in-Interest Transactions
Party-in-interest transactions include those with fiduciaries or
employees of the Plan, any person who provides services to the Plan,
an employer whose employees are covered by the Plan, an employee
organization whose members are covered by the Plan, a person who owns
50 percent or more of such an employer or employee association, or
relatives of such persons.
At December 31, 1996 and 1995, the Plan had $355,472 and $88,357
invested in money market accounts at Union Bank. The Plan also had
$100,000 invested in certificates of deposit at Union Bank at
December 31, 1996. Union Bank and Regional Bank are affiliated
employers of the Company. In addition, the Plan sold 437 shares of
Company common stock in 1995, purchased 2,871 shares of Company common
stock in 1996 and held 54,963 and 52,092 shares of such stock at
December 31, 1996 and 1995.
The Company provides certain administrative services at no cost to the
Plan.
Tax Status
The Internal Revenue Service has advised that the Plan constitutes a
qualified plan under Section 401 of the Internal Revenue Code and that
the trust established under the Plan is therefore exempt from federal
income taxes.
<PAGE>
Supplemental Schedules
<PAGE>
Indiana United Bancorp
Retirement and Savings Incentive Plan
Item 27a-Schedule of Assets Held for Investment Purposes
December 31, 1996
Employer Identification Number: 35-1562245 Plan Number: 001
<TABLE>
<CAPTION>
Description of
Investment
Including Maturity
Date,
Rate of Interest,
Identity of Issue Collateral,
Borrower, Lessor, or Par or Maturity Current
Similar Party Value Cost Value
<S> <C> <C> <C>
U.S. Treasury and Federal Agency Obligations
U.S. Treasury note $100,000, 4.75%,
due 2/15/97 $ 98,313 $ 99,844
U.S. Treasury note $50,000, 8.75%,
due 10/15/97 50,030 51,078
U.S. Treasury note $290,000, 5.125%,
due 4/30/98 281,744 287,009
U.S. Treasury note $130,000, 6.75%,
due 6/30/99 130,203 132,275
U.S. Treasury note $50,000, 7.75%,
due 1/31/00 51,219 52,328
U.S. Treasury note $120,000, 7.75%,
due 1/31/00 122,925 125,587
U.S. Treasury note $100,000, 7.75%,
due 2/15/01 102,625 105,688
Federal Home Loan Bank $100,000, 6.28%,
due 3/6/06 99,750 97,188
Federal National Mortgage $10,000, 6.10%,
Association due 2/10/00 10,000 9,975
Subtotal 946,809 960,972
Common Stocks
CNB Bancshares, Inc. 525 shares 14,500 21,921
First Merchants Corp. 1,000 shares 26,727 26,500
First Financial Bancorp 1,000 shares 31,449 32,500
GTE Corp. 350 shares 10,876 15,881
Huntington Bancshares 643 shares 8,587 16,967
Eli Lilly 350 shares 11,583 25,550
National City Corp. 800 shares 22,143 35,900
Norwest Corp. 200 shares 6,754 8,700
Old National Bancorp 500 shares 16,625 19,625
Park National Corp. Ohio 500 shares 24,555 26,500
Peoples First Corporation 500 shares 11,055 12,750
Philip Morris 250 shares 16,410 28,250
Pikerville National Corp. 500 shares 10,805 12,250
Southtrust Corp. 1,350 shares 10,720 47,081
Subtotal 222,789 330,375
Certificates of Deposit
First Federal Savings Bank, $50,000, 6.0%,
Greensburg due 3/4/97 50,000 50,000
First Savings Bank, $45,350, 6.06%,
Jeffersonville due 11/15/98 45,350 45,350
Springs Valley CD $50,000, 6.4%,
due 7/24/97 50,000 50,000
The Napoleon State Bank CD $50,000, 6.5%,
due 9/21/00 50,000 50,000
The Napoleon State Bank CD $100,000, 6.22%,
due 12/05/00 100,000 100,000
Subtotal 295,350 295,350
Mutual Funds
Federated Stock Trust 1,550 shares 50,000 49,376
Federated Equity Income Fund 3,503 shares 50,000 53,705
Federated Growth Trust 2,132 shares 50,000 52,318
Fidelity Utilities Fund 2,911 shares 46,529 49,221
Mutual Beacon Fund 1,342 shares 51,562 52,263
Subtotal 248,091 256,883
*Party-in-Interest Investments
Union Bank & Trust Company of
Indiana Money Market Account $355,472 $355,472 $355,472
Union Bank & Trust Company of
Indiana Certificate of
Deposti $65,000, 5.83%,
due 7/2/97 65,000 65,000
Union Bank & Trust Company of
Indiana Certificate of $35,000, 5.83%,
Deposit due 7/2/97 35,000 35,000
Subtotal 100,000 100,000
Indiana United Bancorp common
stock 54,963 shares 1,138,255 1,597,362
Participant Loans 7.75 - 8.75% 13,165
$3,306,766 $3,909,579
</TABLE>
*Party-in-interest
<PAGE>
Indiana United Bancorp
Retirement and Savings Incentive Plan
Item 27d-Schedule of Reportable Transactions
(Transactions in Excess of 5% of Plan Assets at
Beginning of Year)
Year Ended December 31, 1996
Employer Identification Number: 35-1562245 Plan Number: 001
<TABLE>
<CAPTION>
Identity Expenses Current Value
of Party Description of Purchase Selling Lease Incurred With Cost of of Asset on Net Gain
Involved Assets Price Price Rental Transaction Asset Transaction Date or (Loss)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Issuer Federated Trust-U. S.
Treasury Obligations
Purchases $ 576,398 $ 576,398 $ 576,398
Sales $ 688,015 688,015 688,015
Issuer Union Bank and Trust
Company of Indiana
Money Market Account
Purchases 1,652,981 1,652,981 1,652,981
Sales 1,385,866 1,385,866 1,385,866
</TABLE>
Exhibit 23
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We consent to the incorporation in a Registration Statement on Form S-8 (File
Number 33-45395) of our report dated May 28, 1997, on the audit of the financial
statements of the Indiana United Bancorp Retirement and Savings Incentive Plan
for the year ended December 31, 1996.
Geo. S. Olive & Co. LLC
Indianapolis, Indiana
June 23, 1997
