Northeast Indiana Bancorp, Inc. Announces Third Quarter Earnings
HUNTINGTON, Ind., Oct. 18, 2012 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income of $594,000 ($0.48 per diluted common share) for the Company's third quarter ended September 30, 2012 compared to net income of $631,000 ($0.51 per diluted common share) for the third quarter ended September 30, 2011. The current three months earnings equates to an annualized return on average assets (ROA) of 0.86% and a return on average equity (ROE) of 8.65% compared to an annualized ROA of 0.98% and an ROE of 9.97% for the three months ended September 30, 2011.
Net interest income decreased by $84,000 to $2.2 million for the quarter ended September 30, 2012 when compared to $2.3 million for the quarter ended September 30, 2011. The Company's net interest margin decreased by thirty nine basis points to 3.46% for the current quarter compared to 3.85% in the year earlier quarter. On a linked quarter basis, the Company's 3.46% net interest margin was twenty-two basis points lower compared to the 3.68% net interest margin reported for the quarter ended June 30, 2012.
The Company made a $400,000 provision for loan loss during the quarter ended September 30, 2012 compared to a $375,000 provision for loan loss for the quarter ended September 30, 2011. 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 Company experienced an increase in net charge-offs to $255,000 for the quarter ended September 30, 2012 compared to net charge-offs of $123,000 for the quarter ended September 30, 2011. In addition, total non-performing assets increased $1.8 million to $11.0 million at September 30, 2012 compared to $9.2 million at June 30, 2012.
Noninterest income decreased to $628,000 for the third quarter ended September 30, 2012 compared to $727,000 during the quarter ended September 30, 2011. The decrease is mostly due to gains on security sales taken in the prior year quarterly period of $158,000 compared to no gains on security sales during the current quarterly period. This decline was partially offset by increased gains on sale of loans and decreased losses on sale of repossessed assets between quarterly periods.
Noninterest expense decreased $147,000 to $1.7 million for the quarter ended September 30, 2012 when compared to $1.8 million for the quarter ended September 30, 2011. This decrease was due to a reduction in employee benefits from a $90,000 non-recurring payment into the bank's frozen defined benefit pension plan during the prior year quarterly period. In addition, management set up a $67,500 valuation allowance on three real estate owned parcels during the prior year quarterly period compared to no valuation allowances during the quarter ended September 30, 2012.
Net income for the nine months ended September 30, 2012 increased to $1.94 million ($1.57 per diluted common share) compared to net income of $1.29 million ($1.05 per diluted common share) for the nine months ended September 30, 2011. Net interest income increased $107,000 to $6.80 million for the nine months ended September 30, 2012 compared to $6.69 million for the prior year nine month period. The Company made a $1.00 million provision for loan loss for the nine months ended September 30, 2012 compared to a $1.93 million provision for loan loss for the nine months ended September 30, 2011. Noninterest income increased slightly to $1.97 million for the nine months ended September 30, 2012 compared to $1.92 million for September 30, 2011. Noninterest expense was relatively unchanged at $5.14 million for the nine months ended September 30, 2012 compared to $5.15 million for the nine months ended September 30, 2011.
Total assets increased $18.38 million or 7.07% to $279.90 million at September 30, 2012 compared to December 31, 2011 assets of $261.52 million. Net loans decreased $12.68 million to $164.21 million at September 30, 2012 compared to $176.89 million at December 31, 2011. Total securities increased $19.62 million or 35.3% to $75.22 million at September 30, 2012 compared to $55.60 million at December 31, 2011. Total deposits increased sharply by $25.56 million or 13.5% to $215.40 million at September 30, 2012 from $189.84 million at December 31, 2011. The increase in total deposits came in noninterest bearing DDA, NOW, MMDA and Savings balances through First Federal's full service branches. These newly acquired lower-costing deposits were utilized to pay off maturing brokered deposits and wholesale borrowed funds. Borrowed funds decreased $8.78 million or 20.4% to $34.18 million at September 30, 2012 compared to $42.96 million at December 31, 2011.
Shareholder's equity at September 30, 2012 was $27.61 million compared to $26.15 million at December 31, 2011. The book value of NEIB's stock was $22.27 per common share as of September 30, 2012. The number of outstanding common shares was 1,239,946. The last reported trade of the stock on October 15, 2012 was $16.5 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.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 |
||||||||||||||||||
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION |
||||||||||||||||||
ASSETS
|
September 30, 2012 |
December 31, |
||||||||||||||||
Interest-earning cash and cash equivalents |
$ |
21,651,661 |
$ |
11,598,753 |
||||||||||||||
Noninterest earning cash and cash equivalents |
2,592,594 |
2,495,578 |
||||||||||||||||
Total cash and cash equivalents |
24,244,255 |
14,094,331 |
||||||||||||||||
Securities available for sale |
71,925,795 |
55,117,994 |
||||||||||||||||
Securities held to maturity |
3,298,790 |
482,807 |
||||||||||||||||
Loans held for sale |
231,750 |
42,500 |
||||||||||||||||
Loans receivable, net of allowance for loan loss September 30, 2012 $3,865,907 and December 31, 2011 $4,061,508 |
164,209,440 |
176,893,452 |
||||||||||||||||
Accrued interest receivable |
967,790 |
980,464 |
||||||||||||||||
Premises and equipment |
3,023,182 |
2,691,780 |
||||||||||||||||
Investments in limited liability partnerships |
94,422 |
153,813 |
||||||||||||||||
Cash surrender value of life insurance |
7,203,131 |
7,016,493 |
||||||||||||||||
Other assets |
4,703,958 |
4,050,116 |
||||||||||||||||
Total Assets |
$ |
279,902,513 |
$ |
261,523,750 |
||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||||||||||||
Non-interest bearing deposits |
22,060,540 |
14,847,250 |
||||||||||||||||
Interest bearing deposits |
193,335,503 |
174,988,658 |
||||||||||||||||
Borrowed Funds |
34,178,152 |
42,955,096 |
||||||||||||||||
Accrued interest payable and other liabilities |
2,713,573 |
2,587,575 |
||||||||||||||||
Total Liabilities |
252,287,768 |
235,378,579 |
||||||||||||||||
Retained earnings – substantially restricted |
27,614,745 |
26,145,171 |
||||||||||||||||
Total Liabilities and Shareholders' Equity |
$ |
279,902,513 |
$ |
261,523,750 |
||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||
September 30, |
September 30, |
|||||||||||||||||
2012 |
2011 |
2012 |
2011 |
|||||||||||||||
Total interest income |
$ |
2,741,592 |
$ |
3,048,865 |
$ |
8,497,766 |
$ |
9,133,501 |
||||||||||
Total interest expense |
521,996 |
744,798 |
1,698,169 |
2,441,124 |
||||||||||||||
Net interest income |
$ |
2,219,596 |
$ |
2,304,067 |
$ |
6,799,597 |
$ |
6,692,377 |
||||||||||
Provision for loan losses |
400,000 |
375,000 |
1,000,000 |
1,925,000 |
||||||||||||||
Net interest income after |
$ |
1,819,596 |
$ |
1,929,067 |
$ |
5,799,597 |
$ |
4,767,377 |
||||||||||
Service charges on |
123,235 |
160,060 |
393,699 |
450,048 |
||||||||||||||
Net gain on sale of |
- |
158,362 |
- |
272,542 |
||||||||||||||
Net gain on sale of |
224,275 |
187,863 |
691,945 |
441,949 |
||||||||||||||
Net (loss) on sale of |
(47,289) |
(103,607) |
(85,476) |
(204,902) |
||||||||||||||
Brokerage fees |
95,673 |
113,033 |
317,238 |
303,190 |
||||||||||||||
Increase in cash |
62,213 |
62,138 |
186,638 |
189,141 |
||||||||||||||
Other income |
170,688 |
149,236 |
467,162 |
466,368 |
||||||||||||||
Total noninterest income |
$ |
628,795 |
$ |
727,085 |
$ |
1,971,206 |
$ |
1,918,336 |
||||||||||
Salaries and |
865,730 |
925,219 |
2,645,954 |
2,634,326 |
||||||||||||||
Occupancy |
237,524 |
235,265 |
709,296 |
706,614 |
||||||||||||||
Data processing |
180,675 |
186,320 |
619,927 |
578,892 |
||||||||||||||
Deposit insurance premiums |
60,000 |
31,000 |
180,000 |
194,000 |
||||||||||||||
Professional fees |
79,132 |
102,255 |
277,882 |
289,097 |
||||||||||||||
Correspondent bank charges |
28,462 |
33,662 |
88,543 |
100,989 |
||||||||||||||
Valuation allowances – |
- |
67,500 |
- |
67,500 |
||||||||||||||
Other expense |
208,897 |
226,598 |
614,912 |
577,585 |
||||||||||||||
Total noninterest expenses |
$ |
1,660,420 |
$ |
1,807,819 |
$ |
5,136,514 |
$ |
5,149,003 |
||||||||||
Income before income tax |
$ |
787,971 |
$ |
848,333 |
$ |
2,634,289 |
$ |
1,536,710 |
||||||||||
Income tax expense |
194,236 |
217,564 |
691,010 |
243,324 |
||||||||||||||
Net Income |
$ |
593,735 |
$ |
630,769 |
$ |
1,943,279 |
$ |
1,293,386 |
||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||
2012 |
2011 |
2012 |
2011 |
|||||||||||||||
Basic Earnings per common share |
0.48 |
0.51 |
1.57 |
1.05 |
||||||||||||||
Dilutive Earnings per share |
0.48 |
0.51 |
1.57 |
1.05 |
||||||||||||||
Net interest margin |
3.46% |
3.85% |
3.65% |
3.72% |
||||||||||||||
Return on average assets |
0.86% |
0.98% |
0.97% |
0.67% |
||||||||||||||
Return on average equity |
8.65% |
9.97% |
9.46% |
6.99% |
||||||||||||||
Efficiency ratio |
58.29% |
59.64% |
58.56% |
59.80% |
||||||||||||||
Average shares outstanding- primary |
1,234,380 |
1,232,303 |
1,234,211 |
1,231,717 |
||||||||||||||
Average shares outstanding- diluted |
1,234,410 |
1,237,507 |
1,234,417 |
1,232,584 |
||||||||||||||
Allowance for loan losses: |
||||||||||||||||||
Balance at beginning of period |
$ |
3,721,360 |
$ |
3,608,088 |
$ |
4,061,508 |
$ |
3,227,844 |
||||||||||
Charge-offs: |
||||||||||||||||||
One-to-four family |
32,767 |
124,116 |
131,055 |
454,569 |
||||||||||||||
Commercial real estate |
136,360 |
15,138 |
181,926 |
304,479 |
||||||||||||||
Land/land development |
- |
- |
653,451 |
284,961 |
||||||||||||||
Commercial |
- |
- |
176,345 |
124,292 |
||||||||||||||
Consumer |
109,845 |
- |
139,107 |
160,945 |
||||||||||||||
Gross charge-offs |
278,972 |
141,297 |
1,281,884 |
1,329,246 |
||||||||||||||
Recoveries: |
||||||||||||||||||
One-to-four family |
2,226 |
975 |
8,835 |
2,425 |
||||||||||||||
Commercial real estate |
- |
- |
- |
- |
||||||||||||||
Land/land development |
- |
- |
- |
- |
||||||||||||||
Commercial |
1,238 |
- |
1,233 |
- |
||||||||||||||
Consumer |
20,060 |
17,093 |
76,215 |
33,836 |
||||||||||||||
Gross recoveries |
23,519 |
18,068 |
86,283 |
36,261 |
||||||||||||||
Net charge-offs |
255,453 |
123,299 |
1,195,601 |
1,292,985 |
||||||||||||||
Additions charged to operations |
400,000 |
375,000 |
1,000,000 |
1,925,000 |
||||||||||||||
Balance at end of period |
$ |
3,865,907 |
$ |
3,859,859 |
$ |
3,865,907 |
$ |
3,859,859 |
||||||||||
Net loan charge-offs to average loans (1) |
0.59% |
0.27% |
0.91% |
0.94% |
||||||||||||||
Nonperforming assets (000's) |
At September 30, |
At June 30, |
At March 30, |
At December 31, |
||||||||||||||
Loans: |
2012 |
2012 |
2012 |
2011 |
||||||||||||||
Non-accrual |
$ |
6,518 |
$ |
5,333 |
$ |
4,066 |
$ |
7,474 |
||||||||||
Past 90 days or more and still accruing |
- |
- |
- |
- |
||||||||||||||
Troubled debt restructured |
2,022 |
1,329 |
1,419 |
1,213 |
||||||||||||||
Total nonperforming loans |
8,540 |
6,662 |
5,485 |
8,687 |
||||||||||||||
Real estate owned |
2,419 |
2,554 |
3,162 |
1,242 |
||||||||||||||
Other repossessed assets |
14 |
- |
10 |
- |
||||||||||||||
Total nonperforming assets |
$ |
10,973 |
$ |
9,216 |
$ |
8,657 |
$ |
9,929 |
||||||||||
Nonperforming assets to total assets |
3.92% |
3.39% |
3.29% |
3.85% |
||||||||||||||
Nonperforming loans to total loans |
5.08% |
3.93% |
3.12% |
4.80% |
||||||||||||||
Allowance for loan losses to nonperforming loans |
45.27% |
55.85% |
62.73% |
46.76% |
||||||||||||||
Allowance for loan losses to net loans receivable |
2.35% |
2.24% |
2.00% |
2.30% |
||||||||||||||
At September 30, |
||||||||||||||||||
2012 |
2011 |
|||||||||||||||||
Stockholders' equity as a % of total assets |
9.87% |
9.87% |
||||||||||||||||
Book value per share |
$ |
22.27 |
$ |
20.62 |
||||||||||||||
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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