Northeast Indiana Bancorp, Inc. Announces Record Quarterly And Record Year To Date Earnings
HUNTINGTON, Ind., Oct. 15, 2020 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income increased $285,000 or 21.0% to $1.65 million ($1.37 per diluted common share) for the Company's third quarter ended September 30, 2020 compared to net income of $1.36 million ($1.14 per diluted common share) for the third quarter ended September 30, 2019. The current three months earnings represent a new record for the Company and equates to an annualized return on average assets (ROA) of 1.65% and a return on average equity (ROE) of 14.33%. This compares to an annualized ROA of 1.53% and an annualized ROE of 13.31% for the three months ended September 30, 2019.
Net income for the nine months ended September 30, 2020 increased $583,000 or 16.5% to $4.12 million ($3.43 per diluted common share), compared to net income of $3.54 million ($2.96 per diluted common share) for the nine months ended September 30, 2019. The current nine months earnings represent a new record for the Company and equates to an annualized ROA of 1.43% and an annualized ROE of 12.54%. This compares to an annualized ROA of 1.34% and an annualized ROE of 12.01% for the nine months ended September 30, 2019.
First Federal Savings Bank has been a source of strength to small business clients and non-profits in Northeast Indiana during 2020. The Bank participated in the SBA's Paycheck Protection Program ("PPP") and helped over 400 clients receive roughly $40.0 million in PPP funding. The business banking team is now helping clients maneuver PPP Forgiveness applications. We anticipate that process being completed during the fourth quarter of 2020 and into the first quarter of 2021.
First Federal Savings Bank had continued strong 1-4 Family mortgage production during the quarter ended September 30, 2020. The Bank originated mortgage loans in the amount of $24.6 million for the current quarter after record mortgage production of $33.3 million for the quarter ended June 30, 2020. These efforts help our retail clients through lower monthly payments and lower interest over the life of their mortgage loans. We anticipate mortgage production to remain at these elevated levels at least over the next three months if not longer.
First Federal Savings Bank has also worked with our borrowers on loan forbearance requests under the CARES Act. We initially executed forbearance requests on roughly $36.0 million (13% of loan portfolio) in loan balances for an initial three-month period during the quarter ended June 30, 2020. That figure declined significantly to roughly $8.0 million (3% of loan portfolio) that executed a second three-month forbearance request during the current quarter ended September 30, 2020. Management anticipates a high majority of these clients moving back to amortizing status during the quarter ended December 31, 2020.
Net Loans Receivable have increased $18.86 million or 7.44% to $272.32 million at September 30, 2020 compared to $253.46 million at December 31, 2019. Total Deposits have increased $40.53 million or 16.10% to $292.81 million at September 30, 2020 compared to $252.28 million at December 31, 2019. Shareholder's equity increased $4.26 million or 10.31% to $45.58 million at September 30, 2020 compared to $41.32 million at December 31, 2019. The book value of NIDB's stock was $37.66 per common share as of September 30, 2020. The number of outstanding common shares was 1,210,327 as of the same date. The last reported trade of the stock on October 13, 2020 was $33.50 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 five full-service Indiana offices in Huntington (2), Warsaw and Fort Wayne (2). The Company is traded on the OTC Markets Group, Inc. (www.otcmarkets.com) utilizing the OTCQB platform under the symbol "NIDB". Our web site address is www.firstfedindiana.bank.
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 | |||||||||||||||||
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | |||||||||||||||||
ASSETS | September 30, | December 31, | |||||||||||||||
Interest-earning cash and cash equivalents | $ | 12,569,363 | $ | 8,352,340 | |||||||||||||
Noninterest earning cash and cash equivalents | 6,670,671 | 2,863,471 | |||||||||||||||
Total cash and cash equivalents | 19,240,034 | 11,215,811 | |||||||||||||||
Interest- earning time deposits | 3,681,000 | 3,681,000 | |||||||||||||||
Securities available for sale | 70,635,203 | 65,001,858 | |||||||||||||||
Securities held to maturity | 5,806,824 | 1,044,197 | |||||||||||||||
Loans held for sale | 2,100,400 | 134,000 | |||||||||||||||
Loans receivable, net of allowance for loan loss September 30, 2020 $3,781,578 and December 31, 2019 $3,191,605 | 272,323,751 | 253,461,826 | |||||||||||||||
Accrued interest receivable | 1,607,891 | 1,242,788 | |||||||||||||||
Premises and equipment | 4,937,414 | 4,971,271 | |||||||||||||||
Investments in limited liability partnerships | 1,903,334 | 2,128,334 | |||||||||||||||
Cash surrender value of life insurance | 9,008,712 | 8,839,193 | |||||||||||||||
Other assets | 1,675,232 | 2,203,348 | |||||||||||||||
Total Assets | $ | 392,919,795 | $ | 353,923,626 | |||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Non-interest bearing deposits | 48,678,996 | 30,011,306 | |||||||||||||||
Interest bearing deposits | 244,130,662 | 222,271,145 | |||||||||||||||
Borrowed Funds | 51,229,782 | 57,237,450 | |||||||||||||||
Accrued interest payable and other liabilities | 3,303,209 | 3,086,817 | |||||||||||||||
Total Liabilities | 347,342,649 | 312,606,718 | |||||||||||||||
Retained earnings – substantially restricted | 45,577,146 | 41,316,908 | |||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 392,919,795 | $ | 353,923,626 | |||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Total interest income | $ | 3,734,822 | $ | 4,097,681 | $ | 11,333,967 | $ | 12,107,235 | |||||||||
Total interest expense | 694,908 | 1,104,242 | 2,421,893 | 3,315,199 | |||||||||||||
Net interest income | $ | 3,039,914 | $ | 2,993,439 | $ | 8,912,074 | $ | 8,792,036 | |||||||||
Provision for loan losses | 120,000 | 200,000 | 460,000 | 350,000 | |||||||||||||
Net interest income after provision for loan losses | $ | 2,919,914 | $ | 2,793,439 | $ | 8,452,074 | $ | 8,442,036 | |||||||||
Service charges on deposit accounts | 148,651 | 190,919 | 469,371 | 539,822 | |||||||||||||
Interchange Fees | 122,189 | 160,982 | 419,398 | 443,850 | |||||||||||||
Net gain (loss) on sale of securities | - | (6,510) | - | 91,526 | |||||||||||||
Net gain on sale of loans | 799,857 | 385,842 | 1,841,861 | 648,112 | |||||||||||||
Net gain (loss) on sale of repossessed assets | - | - | (16,535) | 7,608 | |||||||||||||
Brokerage fees | 45,849 | 41,914 | 142,132 | 164,969 | |||||||||||||
Increase in cash surrender value of life insurance | 56,506 | 56,625 | 169,519 | 169,125 | |||||||||||||
Other income | 144,977 | 252,859 | 185,528 | 535,420 | |||||||||||||
Total noninterest income | $ | 1,318,029 | $ | 1,082,631 | $ | 3,211,274 | $ | 2,600,432 | |||||||||
Salaries and employee benefits | 1,242,653 | 1,279,760 | 3,723,935 | 3,877,132 | |||||||||||||
Occupancy | 256,947 | 291,719 | 769,947 | 853,257 | |||||||||||||
Data processing | 223,506 | 245,498 | 825,688 | 719,020 | |||||||||||||
Deposit insurance premiums | 32,500 | - | 78,000 | 24,000 | |||||||||||||
Professional fees | 82,144 | 53,695 | 203,174 | 287,255 | |||||||||||||
Advertising / marketing fees | 65,120 | 40,920 | 148,869 | 189,060 | |||||||||||||
Correspondent bank charges | 31,299 | 35,306 | 90,402 | 109,859 | |||||||||||||
Other expense | 281,095 | 300,486 | 847,170 | 843,493 | |||||||||||||
Total noninterest expenses | $ | 2,215,264 | $ | 2,247,384 | $ | 6,687,185 | $ | 6,903,076 | |||||||||
Income before income tax expense | $ | 2,022,679 | $ | 1,628,686 | $ | 4,976,163 | $ | 4,139,392 | |||||||||
Income tax expense | 375,565 | 267,005 | 852,482 | 599,203 | |||||||||||||
Net Income | $ | 1,647,114 | $ | 1,361,681 | $ | 4,123,681 | $ | 3,540,189 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Basic Earnings per common share | 1.37 | 1.14 | 3.43 | 2.96 | |||||||||||||
Dilutive Earnings per share | 1.37 | 1.14 | 3.43 | 2.96 | |||||||||||||
Net interest margin | 3.24% | 3.57% | 3.28% | 3.55% | |||||||||||||
Return on average assets | 1.65% | 1.53% | 1.43% | 1.34% | |||||||||||||
Return on average equity | 14.33% | 13.31% | 12.54% | 12.01% | |||||||||||||
Efficiency ratio | 50.83% | 55.14% | 55.16% | 60.59% | |||||||||||||
Average shares outstanding- primary | 1,201,419 | 1,198,419 | 1,203,856 | 1,197,226 | |||||||||||||
Average shares outstanding- diluted | 1,201,586 | 1,198,586 | 1,205,523 | 1,197,926 | |||||||||||||
Allowance for loan losses: | |||||||||||||||||
Balance at beginning of period | $ | 3,664,820 | $ | 2,984,907 | $ | 3,191,605 | $ | 2,856,319 | |||||||||
Charge-offs: | |||||||||||||||||
One-to-four family | - | 41,961 | - | 41,961 | |||||||||||||
Commercial real estate | - | - | 17,951 | 73,705 | |||||||||||||
Land/land development | - | - | - | - | |||||||||||||
Commercial | - | - | - | 25,000 | |||||||||||||
Consumer | 39,016 | 67,622 | 84,143 | 153,031 | |||||||||||||
Gross charge-offs | 39,016 | 109,583 | 102,094 | 293,698 | |||||||||||||
Recoveries: | |||||||||||||||||
One-to-four family | 1,417 | 936 | 2,831 | 2,660 | |||||||||||||
Commercial real estate | - | - | - | 64,040 | |||||||||||||
Land/land development | - | - | - | - | |||||||||||||
Commercial | - | 1,581 | 105,919 | 23,649 | |||||||||||||
Consumer | 34,357 | 16,832 | 123,318 | 91,703 | |||||||||||||
Gross recoveries | 35,774 | 19,349 | 232,067 | 182,052 | |||||||||||||
Net charge-offs | 3,242 | 90,234 | (129,973) | 111,646 | |||||||||||||
Additions charged to operations | 120,000 | 200,000 | 460,000 | 350,000 | |||||||||||||
Balance at end of period | $ | 3,781,578 | $ | 3,094,673 | $ | 3,781,578 | $ | 3,094,673 | |||||||||
(1) Net loan charge-offs/(recoveries) to average loans | 0.00% | 0.14% | (0.06%) | 0.06% | |||||||||||||
Nonperforming assets (000's) | At September 30, | At June 30, | At March 31, | At December 31, | |||||||||||||
Loans: | 2020 | 2020 | 2020 | 2019 | |||||||||||||
Non-accrual | $ | 5,501 | $ | 6,511 | $ | 7,119 | $ | 6,173 | |||||||||
Past 90 days or more and still accruing | - | - | - | - | |||||||||||||
Troubled debt restructured | 381 | 448 | 465 | 468 | |||||||||||||
Total nonperforming loans | 5,882 | 6,959 | 7,584 | 6,641 | |||||||||||||
Real estate owned | 5 | 5 | 59 | 262 | |||||||||||||
Other repossessed assets | - | - | - | - | |||||||||||||
Total nonperforming assets | $ | 5,887 | $ | 6,964 | $ | 7,643 | $ | 6,903 | |||||||||
Nonperforming assets to total assets | 1.50% | 1.42% | 2.14% | 1.95% | |||||||||||||
Nonperforming loans to total loans | 2.13% | 2.48% | 2.97% | 2.59% | |||||||||||||
Allowance for loan losses to nonperforming loans | 64.30% | 52.66% | 45.41% | 48.07% | |||||||||||||
Allowance for loan losses to net loans receivable | 1.39% | 1.32% | 1.37% | 1.26% | |||||||||||||
At September 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Stockholders' equity as a % of total assets | 11.60% | 11.76% | |||||||||||||||
Book value per share | $ | 37.66 | $ | 34.28 | |||||||||||||
Common shares outstanding- EOP | 1,210,327 | 1,206,327 | |||||||||||||||
(1) Ratios for the three-month periods are annualized. | |||||||||||||||||
SOURCE Northeast Indiana Bancorp, Inc.
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