Northeast Indiana Bancorp, Inc. Announces Increased Third Quarter Earnings

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Oct 16, 2014, 10:42 ET

HUNTINGTON, Ind., Oct. 16, 2014 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income increased $130,000 or 21.3% to $739,000 ($0.61 per diluted common share) for the Company's third quarter ended September 30, 2014 compared to net income of $609,000 ($0.49 per diluted common share) for the third quarter ended September 30, 2013. The current three months earnings equates to an annualized return on average assets (ROA) of 1.09% and a return on average equity (ROE) of 10.02% compared to an annualized ROA of 0.91% and an ROE of 8.89% for the three months ended September 30, 2013.

Net income for the nine months ended September 30, 2014 increased $428,000 or 23.5% to $2.25 million ($1.86 per diluted common share) compared to net income of $1.82 million ($1.48 per diluted common share) for the nine months ended September 30, 2013. The current nine months earnings equates to an annualized ROA of 1.11% and an ROE of 10.40% compared to an annualized ROA of 0.91% and an annualized ROE of 8.70% for the nine months ended September 30,2013.

Commenting on the financial results, First Federal Savings Bank CEO Michael S. Zahn stated, "Our earnings continue to remain strong as we move across 2014. This is driven by net interest margin expansion, loan growth of close to 10%, and our ability to be one of the top SBA lenders in the State of Indiana. I congratulate our team on another successful quarter."

Shareholder's equity was $29.6 million at September 30, 2014 compared to $27.8 million at December 31, 2013. The book value of NIDB's stock was $24.66 per common share as of September 30, 2014. The number of outstanding common shares was 1,199,879 as of the same date. The last reported trade of the stock on October 15, 2014 was $24.40 per common share. This is an increase of $3.40 or 16.2% over the last reported trade of the stock on December 31, 2013 of $21.00 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 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
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

*ASSETS*							September 30, 2014						December 31, 2013
Interest-earning cash and cash equivalents							$		4,579,864				$		5,476,740
Noninterest earning cash and cash equivalents							3,410,340						2,481,418
Total cash and cash equivalents							7,990,204						7,958,158
Interest- earning time deposits							7,375,702						7,135,000
Securities available for sale							75,352,217						86,295,635
Securities held to maturity							1,135,378						1,466,003
Loans held for sale							38,500						142,500
Loans receivable, net of allowance for loan loss September 30, 2014 $3,676,641 and December 31, 2013 $3,355,534							165,516,860						150,790,666
Accrued interest receivable							916,337						932,105
Premises and equipment							3,051,368						2,929,520
Cash surrender value of life insurance							7,666,118						7,497,893
Other assets							2,225,916						3,410,137
*Total Assets*							$		271,268,600				$		268,557,617
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits							23,186,835						18,196,448
Interest bearing deposits							187,566,725						190,686,051
Borrowed Funds							28,135,887						28,755,460
Accrued interest payable and other liabilities							2,785,571						3,109,814
*Total Liabilities*							241,675,018						240,747,773

Retained earnings – substantially restricted							29,593,582						27,809,844
*Total Liabilities and Shareholders' Equity*							$		271,268,600				$			268,557,617

CONSOLIDATED STATEMENTS OF INCOME


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
				2014		2013				2014				2013
Total interest income		$		2,666,021	$	2,388,031	$			7,887,227		$		7,274,803
Total interest expense				300,700		322,035				922,969				1,032,315
Net interest income		$		2,365,321	$	2,065,996	$			6,964,258		$		6,242,488
Provision for loan losses				100,000		200,000				475,000				800,000
Net interest income after provision for loan losses		$		2,265,321	$	1,865,996	$			6,489,258		$		5,442,488
Service charges on deposit accounts				141,646		135,229				382,904				382,551
Net gain (loss) on sale of securities				(17,827)		-				(25,703)				36,360
Net gain on sale of loans				177,858		189,774				846,097				739,033
Net gain (loss) on sale of repossessed assets				1,325		(1,498)				4,719				15,050
Brokerage fees				130,087		111,408				372,139				321,706
Increase in cash surrender value of life insurance				56,075		59,138				168,225				177,413
Other income				190,916		183,853				540,467				503,888
Total noninterest income		$		680,080	$	677,904	$			2,288,848		$		2,176,001
Salaries and employee benefits				992,587		894,069				2,931,887				2,650,837
Occupancy				283,039		262,252				856,410				805,297
Data processing				221,347		205,239				622,414				595,704
Deposit insurance premiums				47,000		60,000				152,000				180,000
Professional fees				61,709		57,932				249,876				199,969
Correspondent bank charges				31,439		30,656				92,581				90,426
Other expense				264,122		213,733				726,632				649,572
Total noninterest expenses		$		1,901,243	$	1,723,881	$			5,631,800		$		5,171,805
Income before income tax expense		$		1,044,158	$	820,019	$			3,146,306		$		2,446,684
Income tax expense				305,557		211,162				893,541				621,812
Net Income		$		738,601	$	608,857	$			2,252,765		$		1,824,872


	Three Months Ended September 30,							Nine Months Ended September 30,
	2014				2013			2014			2013
Basic Earnings per common share	0.61				0.49			1.86			1.48
Dilutive Earnings per share	0.61				0.49			1.86			1.48
Net interest margin	3.71%				3.30%			3.64%			3.32%
Return on average assets	1.09%				0.91%			1.11%			0.91%
Return on average equity	10.02%				8.89%			10.40%			8.70%
Efficiency ratio	62.43%				62.83%			60.86%			61.43%
Average shares outstanding- primary	1,201,453				1,231,452			1,210,600			1,234,453
Average shares outstanding- diluted	1,201,453				1,231,452			1,210,807			1,234,704
Allowance for loan losses:
Balance at beginning of period	$			3,557,475	$	3,718,475		$		3,355,534	$			3,846,021
Charge-offs:
One-to-four family	-				46,253			26,908			75,186
Commercial real estate	-				-			-			8,483
Land/land development	-				-			-			145,000
Commercial	-				-			75,000			637,391
Consumer	40,728				43,982			146,864			140,638
Gross charge-offs	40,728				90,235			248,771			1,006,698
Recoveries:
One-to-four family	660				1,672			2,878			4,987
Commercial real estate	-				-			-			72,801
Land/land development	-				-			-			30,000
Commercial	-				-			-			25,847
Consumer	59,075				17,348			92,001			74,301
Gross recoveries	59,735				19,020			94,878			207,937
Net charge-offs	(19,007)				71,215			153,893			798,761
Additions charged to operations	100,000				200,000			475,000			800,000
Balance at end of period	$			3,676,641	$	3,847,260		$		3,676,641	$			3,847,260

Net loan charge-offs/(recoveries) to average loans (1)	(0.01%)				0.19%			0.13%			0.70%

Nonperforming assets (000's)	At September 30,				At June 30,			At March 31,			At December 31,
Loans:	2014				2014			2014			2013
Non-accrual	$			5,210	$	5,109		$		4,742	$			5,443
Past 90 days or more and still accruing	-				-			-			-
Troubled debt restructured	1,814				1,407			1,334			1,398
Total nonperforming loans	7,024				6,516			6,076			6,841
Real estate owned	101				106			256			508
Other repossessed assets	4				-			-			20
Total nonperforming assets	$			7,129	$	6,622		$		6,332	$			7,369

Nonperforming assets to total assets	2.63%					2.44%		2.33%			2.74%
Nonperforming loans to total loans	4.15%					3.99%		3.76%			4.44%
Allowance for loan losses to nonperforming loans	52.35%					54.60%		57.98%			49.06%
Allowance for loan losses to net loans receivable	2.22%					2.23%		2.23%			2.23%



	At September 30,
	2014				2013

Stockholders' equity as a % of total assets	10.91%				10.33%
Book value per share	$		24.66		$	22.42
Common shares outstanding- EOP	1,199,879				1,231,946

(1) Ratios for the three-month periods are annualized.