Northeast Indiana Bancorp, Inc. Announces 33% Increase In Quarterly Earnings

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Apr 10, 2018, 11:31 ET

HUNTINGTON, Ind., April 10, 2018 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced net income of $1.1 million ($0.92 per diluted common share) for the first quarter ended March 31, 2018. This was an increase of $273,000 or 32.8% when compared to net income of $830,000 ($0.69 per diluted common share) for the first quarter ended March 31, 2017. The increase is primarily due to increased net interest income and noninterest income as well as lower federal income tax expense from tax reform that became effective at the start of 2018. The current three months earnings equate to an annualized return on average assets (ROA) of 1.39% and a return on average equity (ROE) of 12.41% compared to an ROA of 1.10% and an ROE of 9.74% for the prior year quarter ended March 31, 2017.

Total loans increased $2.4 million or 1.1% to $227.5 million at March 31, 2018 compared to total loans of $225.1 million at December 31, 2017. Total deposits increased $13.8 million or 6.5% to $226.0 million at March 31, 2018 compared to $212.2 million at December 31, 2017. Total nonperforming assets decreased $121,000 to $2.4 million at March 31, 2018 compared to $2.5 million at December 31, 2017.

Shareholders' equity was relatively unchanged at $35.7 million at both March 31, 2018 and December 31, 2017. The Company repurchased 8,552 shares during the quarter ended March 31, 2018 under a previously announced Share Repurchase Program that remained open from a prior reporting period. The book value of NIDB stock was $29.56 per common share as of March 31, 2018. The number of outstanding common shares was 1,206,327. The last reported trade of the stock on April 9, 2018 was $34.50 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
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION


*ASSETS*					March 31,		December 31,
					2018		2017
Interest-earning cash and cash equivalents					$	8,276,546	$	3,954,186
Noninterest earning cash and cash equivalents					2,319,391		3,559,790
Total cash and cash equivalents					10,595,937		7,513,976
Interest-earning time deposits					2,450,000		1,715,000
Securities available for sale					56,942,869		58,583,396
Securities held to maturity					1,556,044		1,728,199
Loans held for sale					329,375		1,064,300
Loans receivable, net of allowance for loan loss March 31, 2018 $2,757,515 and December 31, 2017 $2,746,523					227,507,470		225,132,535
Accrued interest receivable					1,160,589		1,246,930
Premises and equipment					4,093,825		4,148,328
Investments in limited liability partnerships					2,638,333		2,708,333
Cash surrender value of life insurance					8,439,318		8,382,193
Other assets					1,933,355		1,952,615
*Total Assets*					$	317,647,115	$	314,175,805
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits					28,906,811		25,242,627
Interest bearing deposits					197,089,958		186,916,030
Borrowed Funds					51,720,955		61,199,066
Accrued interest payable and other liabilities					4,270,770		5,098,911
*Total Liabilities*					281,988,494		278,456,634

Retained earnings – substantially restricted					35,658,621		35,719,171
*Total Liabilities and Shareholders' Equity*					$	317,647,115	$	314,175,805


CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	March 31,
		2018		2017
Total interest income	$	3,334,734	$	2,934,994
Total interest expense		675,178		461,241
Net interest income	$	2,659,556	$	2,473,753
Provision for loan losses		-		-
Net interest income after provision for loan losses	$	2,659,556	$	2,473,753
Service charges on deposit accounts		169,402		139,164
Interchange fees		125,892		108,546
Net loss on sale of securities		(4,947)		(7,716)
Net gain on sale of loans		286,263		205,237
Net loss on sale of repossessed assets		-		(7,798)
Brokerage fees		56,950		65,703
Increase in cash surrender value of life insurance		57,126		55,375
Other income		122,583		144,366
Total noninterest income	$	813,269	$	702,877
Salaries and employee benefits		1,168,092		1,113,486
Occupancy		265,540		252,266
Data processing		281,703		271,586
Deposit insurance premiums		24,000		30,000
Professional fees		75,633		55,423
Advertising and marketing fees		52,849		47,393
Correspondent bank charges		29,546		29,232
Other expense		278,090		264,617
Total noninterest expenses	$	2,175,453	$	2,064,003
Income before income tax expenses	$	1,297,372	$	1,112,627
Income tax expense		195,235		283,008
Net Income	$	1,102,137	$	829,619


NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

	Three Months Ended
	March 31,
	2018		2017
Basic Earnings per common share	0.92		0.69
Dilutive Earnings per share	0.92		0.69
Net interest margin	3.59%		3.53%
Return on average assets	1.39%		1.10%
Return on average equity	12.41%		9.74%
Efficiency ratio	62.64%		64.97%
Average shares outstanding- primary	1,193,235		1,200,106
Average shares outstanding- diluted	1,194,792		1,200,206
Allowance for loan losses:
Balance at beginning of period	$	2,746,523	$	3,144,092
Charge-offs:
One-to-four family	7,754		-
Commercial real estate	-		-
Land/land development	-		-
Commercial	2,250		-
Consumer	43,935		41,472
Gross charge-offs	53,639		41,472
Recoveries:
One-to-four family	341		938
Commercial real estate	5,518		-
Land/land development	-		-
Commercial	5,948		-
Consumer	52,824		44,939
Gross recoveries	64,631		45,877
Net charge-offs/(recoveries)	(10,992)		(4,404)
Additions charged to operations	-		-
Balance at end of period	$	2,757,515	$	3,148,496

Net loan charge-offs to average loans (1)	(0.02%)		(0.01%)

Nonperforming assets (000's)	At March 31,		At December 31,
Loans:	2018		2017
Non-accrual	$	2,032	$	2,261
Past 90 days or more and still accruing	-		-
Troubled debt restructured	296		236
Total nonperforming loans	2,328		2,497
Real estate owned	48		-
Other repossessed assets	-		-
Total nonperforming assets	$	2,376	$	2,497

Nonperforming assets to total assets	0.75%		0.79%
Nonperforming loans to total loans	1.01%		1.10%
Allowance for loan losses to nonperforming loans	118.47%		110.01%
Allowance for loan losses to net loans receivable	1.21%		1.22%



	At March 31,
	2018		2017

Stockholders' equity as a % of total assets	11.23%		11.34%
Book value per share	$	29.56	$	28.34
Common shares outstanding- EOP	1,206,327		1,214,879

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