Northeast Indiana Bancorp, Inc. Announces Increased Year End 2010 Earnings
HUNTINGTON, Ind., Feb. 11, 2011 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTC Bulletin Board: NIDB), the parent company of First Federal Savings Bank, today announced earnings for the year ended December 31, 2010 of $2.0 million ($1.64 per diluted common share) compared to net income of $1.9 million ($1.53 per diluted common share) for the year ended December 31, 2009. The full year 2010 earnings equates to an annualized return on average assets (ROA) of 0.78% and a return on average equity (ROE) of 8.49% as compared to an ROA of 0.75% and an ROE of 8.32% for the full year 2009.
Commenting on the financial results, First Federal Savings Bank President Michael S. Zahn stated, "We are very happy with the Company's performance in 2010 and extremely proud to have achieved this level of success without any government assistance. In a continued challenging economic environment, the Company was able to significantly increase our core deposits while sharply reducing higher costing borrowed funds, increase earnings, increase capital and continue to aggressively fund the allowance for loan losses. This enabled the board to reward our shareholders with an increased dividend in 2010."
Net interest income increased by $405,000 or 5.0% to $8.6 million for the year ended December 31, 2010 when compared to $8.2 million for the year ended December 31, 2009. The Company's net interest margin increased 9 basis points to 3.54% for the twelve months ended December 31, 2010 versus 3.45% for the twelve months ended December 31, 2009.
The Company made a $1.7 million provision for loan loss for the year ended December 31, 2010 compared to a $1.4 million provision for loan loss for the year ended December 31, 2009. Management continues to feel it is prudent to increase the allowance for loan losses by setting aside provisions for loan losses at higher levels during these uncertain economic conditions. The bank recorded net charge-offs of $1.3 million for the year ended December 31, 2010 compared to net charge-offs of $282,000 for the year ended December 31, 2009.
Noninterest income increased by $274,000 to $2.6 million for the year ended December 31, 2010 when compared to $2.3 million for the year ended December 31, 2009. This increase is primarily due to decreased losses on security sales as well as a net gain on the sale of repossessed assets for 2010 compared to a net loss in the same area for 2009. Brokerage fees also increased sharply in 2010. These increases more than offset a decrease in service charges on deposits due to regulatory changes implemented on courtesy overdraft programs.
Non-interest expenses increased to $6.7 million for the year ended December 31, 2010 compared to $6.3 million for the year ended December 31, 2009. This increase came from both increases in wages and occupancy from the first full year of a new full service branch which opened in Fort Wayne, Indiana during September 2009.
Net income was reported at $530,000 for the three months ended December 31, 2010, an increase of $179,000 or 51.1% from net income of $351,000 for the three months ended December 31, 2009. The sharp increase between quarterly periods is primarily due to increased noninterest income, increased net interest income as well as lower levels of loan loss provisions taken between quarterly periods. Net interest income increased $158,000 due to an improving net interest margin for the current quarter ended December 31, 2010 compared to the quarter one year ago. Noninterest income increased to $735,000 for the three months ended December 31, 2010 when compared to $468,000 for the three months ended December 31, 2009 due to significantly increased net gains on the sale of loans as well as increased net gain on the sale of repossessed assets. Noninterest expenses increased $218,000 to $1.8 million for the quarter ended December 31, 2010 when compared to $1.6 million for the quarter ended December 31, 2009, primarily due to increased wages and valuation allowances on repossessed assets. Valuation allowances on repossessed assets for the quarter ended December 31, 2010 included an additional reserve of $148,000 set up against some real estate parcels in REO.
Total assets increased $3.4 million to $256.1 million at December 31, 2010 compared to December 31, 2009 assets of $252.7 million. Net loans receivable decreased to $182.9 million at December 31, 2010 from $191.3 million at December 31, 2009. Total deposits increased $21.8 million or 14.1% to $176.4 million at December 31, 2010 from $154.6 million at December 31, 2009. Non-maturity deposit balances increased $36.8 million while time deposit balances declined by $15.0 million over the current twelve month period. Borrowed funds decreased $19.5 million or 36.4% to $53.6 million at December 31, 2010 compared to $73.1 million at December 31, 2009.
Shareholder's equity at December 31, 2010 was $24.1 million compared to the $23.0 million reported at December 31, 2009. The Company paid out cash dividends of $855,000 to shareholders during the year ended December 31, 2010. The book value of NIDB stock was $19.46 per common share as of December 31, 2010 as compared to a book value of $18.66 per common share as of December 31, 2009. The number of outstanding common shares was 1,239,946. The last reported trade of the stock on December 31, 2010 was $13.00 per common share.
Northeast Indiana Bancorp, Inc. is headquartered at 648 N. Jefferson Street, Huntington, Indiana. The company offers a full array of banking and financial brokerage services to its customers through its main office in Huntington and four full-service Indiana offices in Huntington (2), Warsaw and Fort Wayne. The Company is traded on the Over the Counter Bulletin Board under the symbol "NIDB". Our web site address is www.firstfedindiana.com.
This press release may contain forward-looking statements, which are based on management's current expectations regarding economic, legislative and regulatory issues. Factors which may cause future results to vary materially include, but are not limited to, general economic conditions, changes in interest rates, loan demand, and competition. Additional factors include changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, regulatory and technological factors affecting each company's operations, pricing, products and services.
NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) | ||||||
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | ||||||
ASSETS | December 31, 2010 | December 31, 2009 | ||||
Interest-earning cash and cash equivalents | $ | 9,450,979 | $ | 10,929,272 | ||
Noninterest earning cash and cash equivalents | 2,045,215 | 2,473,235 | ||||
Total cash and cash equivalents | 11,496,194 | 13,402,507 | ||||
Securities available for sale | 46,477,692 | 33,025,298 | ||||
Securities held to maturity (fair value: Dec. 31, 2010 – $400,000 and Dec. 31, 2009 - $550,000) | 400,000 | 550,000 | ||||
Loans held for sale | 353,642 | 53,200 | ||||
Loans receivable, net of allowance for loan loss Dec. 31, 2010 $3,227,844 and Dec. 31, 2009 $2,868,468 | 182,913,386 | 191,267,218 | ||||
Accrued interest receivable | 981,357 | 1,040,528 | ||||
Premises and equipment | 2,554,170 | 2,158,406 | ||||
Investments in limited liability partnerships | 233,001 | 317,643 | ||||
Cash surrender value of life insurance | 6,765,215 | 6,514,390 | ||||
Other assets | 3,926,783 | 4,395,150 | ||||
Total Assets | $ | 256,101,440 | $ | 252,724,340 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Non-interest bearing deposits | 14,301,482 | 11,065,663 | ||||
Interest bearing deposits | 162,099,970 | 143,563,858 | ||||
Borrowed Funds | 53,565,973 | 73,064,228 | ||||
Accrued interest payable and other liabilities | 1,998,866 | 2,065,832 | ||||
Total Liabilities | 231,966,291 | 229,759,581 | ||||
Retained earnings – substantially restricted | 24,135,149 | 22,964,759 | ||||
Total Liabilities and Shareholders' Equity | $ | 256,101,440 | $ | 252,724,340 | ||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
December 31, | December 31, | ||||||||
2010 | 2009 | 2010 | 2009 | ||||||
Total interest income | $ | 3,201,718 | $ | 3,357,035 | $ | 12,893,073 | $ | 13,803,756 | |
Total interest expense | 984,273 | 1,297,815 | 4,333,959 | 5,649,469 | |||||
Net interest income | $ | 2,217,445 | $ | 2,059,220 | $ | 8,559,114 | $ | 8,154,287 | |
Provision for loan losses | 350,000 | 475,000 | 1,700,000 | 1,400,000 | |||||
Net interest income after provision for loan losses | $ | 1,867,445 | $ | 1,584,220 | $ | 6,859,114 | $ | 6,754,287 | |
Service charges on deposit accounts | 153,950 | 188,198 | 669,294 | 707,905 | |||||
Net loss on securities | (102,212) | (150,100) | (171,470) | (234,235) | |||||
Other than temporary impairment- securities | - | - | - | - | |||||
Net gain on sale of loans | 307,061 | 92,274 | 787,771 | 754,283 | |||||
Net gain (loss) on sale of repossessed assets | 81,473 | 3,437 | 27,390 | (123,219) | |||||
Net gain (loss) on sale of fixed assets | (1,068) | (1,645) | (968) | 1,703 | |||||
Brokerage fees | 80,560 | 87,831 | 385,474 | 303,521 | |||||
Other income | 215,267 | 247,644 | 913,526 | 927,315 | |||||
Total noninterest income | $ | 735,031 | $ | 467,639 | $ | 2,611,017 | $ | 2,337,273 | |
Salaries and employee benefits | 815,611 | 738,023 | 3,369,347 | 3,052,370 | |||||
Occupancy | 232,580 | 231,545 | 887,338 | 861,214 | |||||
Data processing | 200,322 | 187,345 | 766,761 | 753,975 | |||||
Deposit insurance premiums | 84,000 | 55,000 | 317,400 | 381,000 | |||||
Professional fees | 75,590 | 85,197 | 296,711 | 287,353 | |||||
Correspondent bank charges | 31,629 | 31,412 | 124,496 | 122,861 | |||||
Valuation allowances – repossessed assets | 148,000 | - | 148,000 | - | |||||
Other expense | 196,429 | 238,041 | 756,795 | 882,669 | |||||
Total noninterest expenses | $ | 1,784,161 | $ | 1,566,563 | $ | 6,666,848 | $ | 6,341,442 | |
Income/(Loss) before income tax expense | $ | 818,315 | $ | 485,296 | $ | 2,803,283 | $ | 2,750,118 | |
Income tax expense/(benefit) | 288,555 | 134,593 | 790,985 | 872,160 | |||||
Net Income | $ | 529,760 | $ | 350,703 | $ | 2,012,298 | $ | 1,877,958 | |
NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) | |||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
2010 | 2009 | 2010 | 2009 | ||||||||
Basic Earnings per common share | 0.43 | 0.29 | 1.64 | 1.53 | |||||||
Dilutive Earnings per share | 0.43 | 0.29 | 1.64 | 1.53 | |||||||
Net interest margin | 3.59% | 3.47% | 3.54% | 3.45% | |||||||
Return on average assets | 0.81% | 0.55% | 0.78% | 0.75% | |||||||
Return on average equity | 8.70% | 6.05% | 8.49% | 8.32% | |||||||
Efficiency Ratio | 60.43% | 62.00% | 59.68% | 60.44% | |||||||
Average shares outstanding - primary | 1,228,770 | 1,228,770 | 1,229,383 | 1,228,239 | |||||||
Average shares outstanding - diluted | 1,228,770 | 1,228,770 | 1,229,895 | 1,228,779 | |||||||
Allowance for loan losses: | |||||||||||
Balance at beginning of period | $ | 2,823,116 | $ | 2,422,874 | $ | 2,868,468 | $ | 1,750,605 | |||
Charge-offs: | |||||||||||
One-to-four family | 9,645 | - | 322,150 | 203,962 | |||||||
Commercial real estate | - | - | 302,368 | - | |||||||
Commercial | 89,303 | - | 890,409 | 74,193 | |||||||
Consumer | 25,028 | 39,496 | 56,314 | 183,525 | |||||||
Gross charge-offs | 123,976 | 39,496 | 1,571,241 | 461,680 | |||||||
Recoveries: | |||||||||||
One-to-four family | 64,525 | 800 | 67,450 | 2,555 | |||||||
Commercial real estate | - | - | 455 | - | |||||||
Commercial | 101,304 | - | 108,095 | 136,635 | |||||||
Consumer | 12,875 | 9,290 | 54,617 | 40,353 | |||||||
Gross recoveries | 178,704 | 10,090 | 230,617 | 179,543 | |||||||
Net charge-offs (recoveries) | (54,728) | 29,406 | 1,340,624 | 282,137 | |||||||
Additions charged to operations | 350,000 | 475,000 | 1,700,000 | 1,400,000 | |||||||
Balance at end of period | $ | 3,227,844 | $ | 2,868,468 | $ | 3,227,844 | $ | 2,868,468 | |||
Net loan charge-offs (recoveries) to average loans (1) | (0.03)% | 0.01% | 0.69% | 0.14% | |||||||
Nonperforming assets (000's) | At December 31, | At September 30, | At June 30, | At December 31, | |||||||
Loans: | 2010 | 2010 | 2010 | 2009 | |||||||
Non-accrual | $ | 7,275 | $ | 6,246 | $ | 4,552 | $ | 2,826 | |||
Past 90 days or more and still accruing | - | - | - | - | |||||||
Troubled debt restructured | 737 | 708 | 621 | 3,008 | |||||||
Total nonperforming loans | 8,012 | 6,954 | 5,173 | 5,834 | |||||||
Real estate owned | 594 | 1,487 | 1,058 | 934 | |||||||
Other repossessed assets | - | 19 | 6 | 11 | |||||||
Total nonperforming assets | $ | 8,606 | $ | 8,460 | $ | 6,237 | $ | 6,779 | |||
Nonperforming assets to total assets | 3.36% | 3.28% | 2.42% | 2.68% | |||||||
Nonperforming loans to total loans | 4.30% | 3.65% | 2.68% | 3.01% | |||||||
Allowance for loan losses to nonperforming loans | 40.29% | 40.59% | 54.86% | 49.16% | |||||||
Allowance for loan losses to total receivable | 1.76% | 1.48% | 1.49% | 1.50% | |||||||
At December 31, | |||||||||||
2010 | 2009 | ||||||||||
Stockholders' equity as a % of total assets | 9.42% | 9.09% | |||||||||
Book value per share | $ | 19.46 | $ | 18.66 | |||||||
Common shares outstanding- EOP | 1,239,946 | 1,230,670 | |||||||||
(1) Ratios for the three-month periods are annualized. | |||||||||||
SOURCE Northeast Indiana Bancorp, Inc.
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