Northeast Indiana Bancorp, Inc. Announces Third Quarter Earnings

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Oct 16, 2013, 03:33 ET

HUNTINGTON, Ind., Oct. 16, 2013 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income of $609,000 ($0.49 per diluted common share) for the Company's third quarter ended September 30, 2013 compared to net income of $594,000 ($0.48 per diluted common share) for the third quarter ended September 30, 2012. The current three months earnings equates to an annualized return on average assets (ROA) of 0.91% and a return on average equity (ROE) of 8.89% compared to an annualized ROA of 0.86% and an ROE of 8.65% for the three months ended September 30, 2012.

Net income for the nine months ended September 30, 2013 was $1.8 million ($1.48 per diluted common share) compared to net income of $1.9 million ($1.57 per diluted common share) for the nine months ended September 30, 2012. The current nine months earnings equates to an annualized ROA of 0.91% and an ROE of 8.70% compared to an annualized ROA of 0.97% and an annualized ROE of 9.46% for the nine months ended September 30,2012.

Shareholder's equity was $27.6 million at September 30, 2013 compared to $27.9 million at December 31, 2012. The book value of NIDB's stock was $22.42 per common share as of September 30, 2013. The number of outstanding common shares was 1,231,946 as of the same date. The last reported trade of the stock on October 15, 2013 was $21.00 per common share. This is an increase of $4.60 or 28.0% over the last reported trade of the stock on December 31, 2012 of $16.40 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, 2013		December 31, 2012
Interest-earning cash and cash equivalents	$	4,972,551	$	16,687,647
Noninterest earning cash and cash equivalents	4,628,996		3,997,988
Total cash and cash equivalents	9,601,547		20,685,635
Interest- earning time deposits	6,400,000		5,910,000
Securities available for sale	90,105,779		71,353,159
Securities held to maturity	1,473,344		1,326,984
Loans held for sale	-		1,549,475
Loans receivable, net of allowance for loan loss September 30, 2013 $3,847,260 and December 31, 2012 $3,846,021	145,351,405		154,746,404
Accrued interest receivable	927,855		929,061
Premises and equipment	2,912,913		2,989,226
Investments in limited liability partnerships	17,314		74,625
Cash surrender value of life insurance	7,438,756		7,261,343
Other assets	3,250,917		4,577,142
*Total Assets*	$	267,479,830	$	271,403,054
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits	19,380,992		20,123,659
Interest bearing deposits	192,876,640		191,462,228
Borrowed Funds	24,500,823		28,902,484
Accrued interest payable and other liabilities	3,099,733		2,975,529
*Total Liabilities*	239,858,188		243,463,900

Retained earnings – substantially restricted	27,621,642		27,939,154
*Total Liabilities and Shareholders' Equity*	$	267,479,830	$		271,403,054

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Total interest income	$	2,388,031	$	2,741,592	$	7,274,803	$	8,497,766
Total interest expense		322,035		521,996		1,032,315		1,698,169
Net interest income	$	2,065,996	$	2,219,596	$	6,242,488	$	6,799,597
Provision for loan losses		200,000		400,000		800,000		1,000,000
Net interest income after provision for loan losses	$	1,865,996	$	1,819,596	$	5,442,488	$	5,799,597
Service charges on deposit accounts		135,229		123,235		382,551		393,699
Net gain on sale of securities		-		-		36,360		-
Net gain on sale of loans		189,774		224,275		739,033		691,945
Net gain (loss) on sale of repossessed assets		(1,498)		(47,289)		15,050		(85,476)
Brokerage fees		111,408		95,673		321,706		317,238
Increase in cash surrender value of life insurance		59,138		62,213		177,413		186,638
Other income		183,853		170,688		503,888		467,162
Total noninterest income	$	677,904	$	628,795	$	2,176,001	$	1,971,206
Salaries and employee benefits		894,069		865,730		2,650,837		2,645,954
Occupancy		262,252		237,524		805,297		709,296
Data processing		205,239		180,675		595,704		619,927
Deposit insurance premiums		60,000		60,000		180,000		180,000
Professional fees		57,932		79,132		199,969		277,882
Correspondent bank charges		30,656		28,462		90,426		88,543
Other expense		213,733		208,897		649,572		614,912
Total noninterest expenses	$	1,723,881	$	1,660,420	$	5,171,805	$	5,136,514
Income before income tax expense	$	820,019	$	787,971	$	2,446,684	$	2,634,289
Income tax expense		211,162		194,236		621,812		691,010
Net Income	$	608,857	$	593,735	$	1,824,872	$	1,943,279

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013				2012		2013		2012
Basic Earnings per common share	0.49				0.48		1.48		1.57
Dilutive Earnings per share	0.49				0.48		1.48		1.57
Net interest margin	3.30%				3.46%		3.32%		3.65%
Return on average assets	0.91%				0.86%		0.91%		0.97%
Return on average equity	8.89%				8.65%		8.70%		9.46%
Efficiency ratio	62.83%				58.29%		61.43%		58.56%
Average shares outstanding- primary	1,231,452				1,234,380		1,234,453		1,234,211
Average shares outstanding- diluted	1,231,452				1,234,410		1,234,704		1,234,417
Allowance for loan losses:
Balance at beginning of period	$		3,718,475		$	3,721,360	$	3,846,021	$	4,061,508
Charge-offs:
One-to-four family	46,253				32,767		75,186		131,055
Commercial real estate	-				136,360		8,483		181,926
Land/land development	-				-		145,000		653,451
Commercial	-				-		637,391		176,345
Consumer	43,982				109,845		140,638		139,107
Gross charge-offs	90,235				278,972		1,006,698		1,281,884
Recoveries:
One-to-four family	1,672				2,226		4,987		8,835
Commercial real estate	-				-		72,801		-
Land/land development	-				-		30,000		-
Commercial	-				1,238		25,847		1,233
Consumer	17,348				20,060		74,301		76,215
Gross recoveries	19,020				23,519		207,937		86,283
Net charge-offs	71,215				255,453		778,761		1,195,601
Additions charged to operations	200,000				400,000		800,000		1,000,000
Balance at end of period	$		3,847,260		$	3,865,907	$	3,847,260	$	3,865,907

Net loan charge-offs to average loans (1)	0.19%				0.59%		0.70%		0.91%

Nonperforming assets (000's)	At September 30,				At June 30,		At March 30,		At December 31,
Loans:	2013				2013		2013		2012
Non-accrual	$		6,461		$	5,553	$	7,194	$	5,464
Past 90 days or more and still accruing	-				-		-		-
Troubled debt restructured	1,379				1,666		1,662		3,347
Total nonperforming loans	7,840				7,219		8,856		8,811
Real estate owned	589				906		1,362		1,719
Other repossessed assets	4				-		17		-
Total nonperforming assets	$		8,433		$	8,126	$	10,235	$	10,530

Nonperforming assets to total assets	3.10%			2.99%			3.89%		3.88%
Nonperforming loans to total loans	5.26%			4.92%			5.71%		5.56%
Allowance for loan losses to nonperforming loans	49.07%			51.51%			47.20%		43.65%
Allowance for loan losses to net loans receivable	2.58%			2.53%			2.69%		2.43%


	At September 30,
	2013				2012

Stockholders' equity as a % of total assets	10.33%				9.87%
Book value per share	$	22.42			$	22.27
Common shares outstanding- EOP	1,231,946				1,239,946

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