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Northeast Indiana Bancorp, Inc. Announces Record Quarterly Earnings and Full Year 2011 Earnings
HUNTINGTON, Ind., Feb. 10, 2012 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced record quarterly earnings for the three months ended December 31, 2011 of $743,000 ($0.60 per diluted common share). This is an increase of $213,000 or 40.2% compared to net income of $530,000 ($0.43 per diluted common share) for the three months ended December 31, 2010. The current quarter's earnings equates to an annualized return on average assets of 1.13% and a return on average equity of 11.61% compared to an ROA of 0.81% and an ROE of 8.70% for the prior year quarter ended December 31, 2010.
The Company also announced full year 2011 earnings of $2.0 million ($1.65 per diluted common share) compared to net income of $2.0 million ($1.64 per diluted common share) for the year ended December 31, 2010. The full year 2011 earnings equates to an ROA of 0.79% and an ROE of 8.13% compared to an ROA of 0.78% and an ROE of 8.49% for the full year 2010
Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "We are extremely proud to have achieved record quarterly earnings as we begin to celebrate our centennial and to have done so in continued challenging economic times. We were also able to increase core deposits, capital ratios and continue to aggressively fund the allowance for loan losses. All of these accomplishments enabled the Board of Directors to again reward our shareholders with an increased dividend in 2011."
Net interest income increased by $443,000 or 5.2% to $9.0 million for the year ended December 31, 2011 when compared to $8.6 million for the year ended December 31, 2010. The Company's net interest margin increased 19 basis points to 3.73% for the twelve months ended December 31, 2011 versus 3.54% for the twelve months ended December 31, 2010.
The Company made a $2.2 million provision for loan loss for the year ended December 31, 2011 compared to a $1.7 million provision for loan loss for the year ended December 31, 2010. 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 both the year ended December 31, 2011 as well as for the year ended December 31, 2010.
Noninterest income was relatively unchanged at $2.6 million for both the year ended December 31, 2011 and for the year ended December 31, 2010. An increase in net gains on the sale of securities of $444,000 between yearly periods offset an increase in net losses on the sale of repossessed assets of $274,000 as well as decreases in deposit service charges of $63,000 and decreases in net gain on the sale of loans of $81,000.
Non-interest expenses increased to $6.9 million for the year ended December 31, 2011 compared to $6.7 million for the year ended December 31, 2010. The Company saw increases in occupancy due to higher property taxes as well as a sharp increase in professional fees due to higher collection costs and higher internal audit/consulting fees from increased compliance reviews by third parties. In addition, the Company took increased valuation allowances on repossessed assets due to continued deterioration in real estate owned market values. These increases were partially offset by a decline in FDIC premiums due to a change in the way premiums are calculated by the FDIC in the current year.
Total assets increased $5.4 million to $261.5 million at December 31, 2011 compared to December 31, 2010 assets of $256.1 million. Net loans receivable decreased to $176.9 million at December 31, 2011 from $182.9 million at December 31, 2010. Total deposits increased $13.4 million or 7.6% to $189.8 million at December 31, 2011 from $176.4 million at December 31, 2010. Non-maturity deposit balances increased $17.1 million while time deposit balances declined by $3.7 million over the current twelve month period. Borrowed funds decreased $10.6 million or 19.8% to $43.0 million at December 31, 2011 compared to $53.6 million at December 31, 2010.
Shareholder's equity at December 31, 2011 was $26.1 million compared to the $24.1 million reported at December 31, 2010. The Company paid out cash dividends of $888,000 to shareholders during the year ended December 31, 2011. The book value of NIDB stock was $21.09 per common share as of December 31, 2011 as compared to a book value of $19.46 per common share as of December 31, 2010. The number of outstanding common shares was 1,239,946. The last reported trade of the stock on December 31, 2011 was $12.20 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 OTC Markets Group, Inc. (www.otcmarkets.com) utilizing the OTCQB platform 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, 2011 | December 31, 2010 | ||||
Interest-earning cash and cash equivalents | $ | 11,598,753 | $ | 9,450,979 | ||
Noninterest earning cash and cash equivalents | 2,495,578 | 2,045,215 | ||||
Total cash and cash equivalents | 14,094,331 | 11,496,194 | ||||
Securities available for sale | 55,117,994 | 46,477,692 | ||||
Securities held to maturity (fair value: Dec. 31, 2011 – $482,807 and Dec. 31, 2010 - $400,000) | 482,807 | 400,000 | ||||
Loans held for sale | 42,500 | 353,642 | ||||
Loans receivable, net of allowance for loan loss Dec. 31, 2011 $4,061,508 and Dec. 31, 2010 $3,227,844 | 176,893,452 | 182,913,386 | ||||
Accrued interest receivable | 980,464 | 981,357 | ||||
Premises and equipment | 2,691,780 | 2,554,170 | ||||
Investments in limited liability partnerships | 153,813 | 233,001 | ||||
Cash surrender value of life insurance | 7,016,493 | 6,765,215 | ||||
Other assets | 4,050,116 | 3,926,783 | ||||
Total Assets | $ | 261,523,750 | $ | 256,101,440 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Non-interest bearing deposits | 14,847,250 | 14,301,482 | ||||
Interest bearing deposits | 174,988,658 | 162,099,970 | ||||
Borrowed Funds | 42,955,096 | 53,565,973 | ||||
Accrued interest payable and other liabilities | 2,587,575 | 1,998,866 | ||||
Total Liabilities | 235,378,579 | 231,966,291 | ||||
Retained earnings – substantially restricted | 26,145,171 | 24,135,149 | ||||
Total Liabilities and Shareholders' Equity | $ | 261,523,750 | $ | 256,101,440 | ||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
December 31, | December 31, | ||||||||
2011 | 2010 | 2011 | 2010 | ||||||
Total interest income | $ | 3,001,900 | $ | 3,201,718 | $ | 12,135,400 | $ | 12,893,073 | |
Total interest expense | 691,858 | 984,273 | 3,132,982 | 4,333,959 | |||||
Net interest income | $ | 2,310,042 | $ | 2,217,445 | $ | 9,002,418 | $ | 8,559,114 | |
Provision for loan losses | 250,000 | 350,000 | 2,175,000 | 1,700,000 | |||||
Net interest income after provision for loan losses | $ | 2,060,042 | $ | 1,867,445 | $ | 6,827,418 | $ | 6,859,114 | |
Service charges on deposit accounts | 156,292 | 153,950 | 606,339 | 669,294 | |||||
Net gain (loss) on securities | - | (102,212) | 272,542 | (171,470) | |||||
Net gain on sale of loans | 264,354 | 307,061 | 706,302 | 787,771 | |||||
Net gain (loss) on sale of repossessed assets | (40,611) | 81,473 | (246,789) | 27,390 | |||||
Net gain (loss) on sale of fixed assets | - | (1,068) | 92 | (968) | |||||
Brokerage fees | 98,778 | 80,560 | 401,968 | 385,474 | |||||
Other income | 221,111 | 215,267 | 877,802 | 913,526 | |||||
Total noninterest income | $ | 699,924 | $ | 735,031 | $ | 2,618,256 | $ | 2,611,017 | |
Salaries and employee benefits | 761,710 | 815,611 | 3,396,034 | 3,369,347 | |||||
Occupancy | 245,294 | 232,580 | 951,889 | 887,338 | |||||
Data processing | 215,351 | 200,322 | 794,244 | 766,761 | |||||
Deposit insurance premiums | 50,500 | 84,000 | 244,500 | 317,400 | |||||
Professional fees | 107,291 | 75,590 | 396,388 | 296,711 | |||||
Correspondent bank charges | 28,958 | 31,629 | 129,948 | 124,496 | |||||
Valuation allowances – repossessed assets | 110,468 | 148,000 | 177,968 | 148,000 | |||||
Other expense | 212,499 | 196,429 | 790,098 | 756,795 | |||||
Total noninterest expenses | $ | 1,732,071 | $ | 1,784,161 | $ | 6,881,069 | $ | 6,666,848 | |
Income before income tax expense | $ | 1,027,895 | $ | 818,315 | $ | 2,564,605 | $ | 2,803,283 | |
Income tax expense | 285,081 | 288,555 | 528,405 | 790,985 | |||||
Net Income | $ | 742,814 | $ | 529,760 | $ | 2,036,200 | $ | 2,012,298 | |
NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) | ||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Basic Earnings per common share | 0.60 | 0.43 | 1.65 | 1.64 | ||||||||
Dilutive Earnings per share | 0.60 | 0.43 | 1.65 | 1.64 | ||||||||
Net interest margin | 3.76% | 3.59% | 3.73% | 3.54% | ||||||||
Return on average assets | 1.13% | 0.81% | 0.79% | 0.78% | ||||||||
Return on average equity | 11.61% | 8.70% | 8.13% | 8.49% | ||||||||
Efficiency Ratio | 57.54% | 60.43% | 59.21% | 59.68% | ||||||||
Average shares outstanding - primary | 1,232,525 | 1,228,770 | 1,231,921 | 1,229,383 | ||||||||
Average shares outstanding - diluted | 1,232,525 | 1,228,770 | 1,232,571 | 1,229,895 | ||||||||
Allowance for loan losses: | ||||||||||||
Balance at beginning of period | $ | 3,859,859 | $ | 2,823,116 | $ | 3,227,844 | $ | 2,868,468 | ||||
Charge-offs: | ||||||||||||
One-to-four family | - | 9,645 | 454,569 | 322,150 | ||||||||
Commercial real estate | - | - | 304,478 | 302,368 | ||||||||
Land/land development | - | - | 284,961 | - | ||||||||
Commercial | 19,248 | 89,303 | 143,540 | 890,409 | ||||||||
Consumer | 56,465 | 25,028 | 217,410 | 56,314 | ||||||||
Gross charge-offs | 75,713 | 123,976 | 1,404,959 | 1,571,241 | ||||||||
Recoveries: | ||||||||||||
One-to-four family | 975 | 64,525 | 3,400 | 67,450 | ||||||||
Commercial real estate | 5,975 | - | 5,975 | 455 | ||||||||
Land/land development | - | - | - | - | ||||||||
Commercial | - | 101,304 | - | 108,095 | ||||||||
Consumer | 20,412 | 12,875 | 54,248 | 54,617 | ||||||||
Gross recoveries | 27,362 | 178,704 | 63,623 | 230,617 | ||||||||
Net charge-offs (recoveries) | 48,351 | (54,728) | 1,341,336 | 1,340,624 | ||||||||
Additions charged to operations | 250,000 | 350,000 | 2,175,000 | 1,700,000 | ||||||||
Balance at end of period | $ | 4,061,508 | $ | 3,227,844 | $ | 4,061,508 | $ | 3,227,844 | ||||
Net loan charge-offs (recoveries) to average loans (1) | 0.03% | (0.03)% | 0.73% | 0.69% | ||||||||
Nonperforming assets (000's) | At December 31, | At September 30, | At June 30, | At December 31, | ||||||||
Loans: | 2011 | 2011 | 2011 | 2010 | ||||||||
Non-accrual | $ | 7,474 | $ | 6,750 | $ | 5,640 | $ | 7,275 | ||||
Past 90 days or more and still accruing | - | - | - | - | ||||||||
Troubled debt restructured | 1,213 | - | 2,421 | 737 | ||||||||
Total nonperforming loans | 8,687 | 6,750 | 8,061 | 8,012 | ||||||||
Real estate owned | 1,242 | 1,254 | 1,586 | 594 | ||||||||
Other repossessed assets | - | - | 1 | - | ||||||||
Total nonperforming assets | $ | 9,929 | $ | 8,004 | $ | 9,648 | $ | 8,606 | ||||
Nonperforming assets to total assets | 3.85% | 3.10% | 3.78% | 3.36% | ||||||||
Nonperforming loans to total loans | 4.80% | 3.68% | 4.53% | 4.30% | ||||||||
Allowance for loan losses to nonperforming loans | 46.76% | 57.19% | 44.77% | 40.29% | ||||||||
Allowance for loan losses to total receivable | 2.30% | 2.11% | 2.07% | 1.76% | ||||||||
At December 31, | ||||||||||||
2011 | 2010 | |||||||||||
Stockholders' equity as a % of total assets | 9.99% | 9.42% | ||||||||||
Book value per share | $ | 21.09 | $ | 19.46 | ||||||||
Common shares outstanding- EOP | 1,239,946 | 1,239,946 | ||||||||||
(1) Ratios for the three-month periods are annualized. | ||||||||||||
SOURCE Northeast Indiana Bancorp, Inc.
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