Northeast Indiana Bancorp, Inc. Announces Annual Earnings And Quarterly Earnings

News provided by

Feb 03, 2017, 11:10 ET

HUNTINGTON, Ind., Feb. 3, 2017 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced annual earnings for the full year 2016 of $3.6 million ($2.99 per diluted common share). 2016 annual earnings represent the second highest annual earnings level ever recorded for the Company. 2015 annual earnings were our highest annual earnings level recorded at $3.8 million. We sold securities during 2015 that generated gains of $407,000 that were not replicated during 2016. The full year 2016 earnings equates to a return on average assets of 1.22% and a return on average equity of 10.58% compared to an ROA of 1.37% and an ROE of 11.91% for the full year 2015.

The Company also announced quarterly earnings for the three months ended December 31, 2016 of $825,000 ($0.69 per diluted common share). Earnings for the quarter ended December 31, 2015 were $1.0 million. As stated previously, securities gains of $294,000 also impacted fourth quarter earnings during 2015. The current quarter's earnings equates to an ROA of 1.10% and an ROE of 9.56% compared to an ROA of 1.42% and an ROE of 12.41% for the prior year quarter ended December 31, 2015.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "We are very proud of our financial performance in 2016. Continued strong core earnings and controlled asset growth have allowed us to put together our 3 most profitable years in a row. This made it possible for us to reward our shareholders with the 22^nd consecutive annual dividend increase and the 2^nd straight year of a special cash dividend."

Total assets increased $16.8 million or 5.9% to $300.9 million at December 31, 2016 compared to December 31, 2015 assets of $284.1 million. Total net loans increased $14.5 million or 8.0% to $196.8 million at December 31, 2016 from $182.8 million at December 31, 2015. Total deposits increased $8.9 million or 4.2% to $218.4 million at December 31, 2016 from $209.5 million at December 31, 2015.

The Company paid out cash dividends of $1.6 million to shareholders during the year ended December 31, 2016. The book value of NIDB stock was $27.86 per common share as of December 31, 2016. The Company's stock closed at $33.01 per common share on December 31, 2016, an increase of $3.01 or 10.0% compared to the closing stock price of $30.00 per common share on December 31, 2015.

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.

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

*ASSETS*					December 31, 2016				December 31, 2015
Interest-earning cash and cash equivalents					$	4,591,440			$		10,491,898
Noninterest earning cash and cash equivalents					2,493,983				1,960,543
Total cash and cash equivalents					7,085,423				12,452,441
Securities available for sale					66,171,764				60,458,506
Interest-earning deposits in financial institutions					9,082,982				11,754,857
Securities held to maturity					2,582,029				2,685,585
Loans held for sale					109,000				-
Loans receivable, net of allowance for loan loss Dec. 31, 2016 $3,144,092 and Dec. 31, 2015 $3,196,953					196,781,434				182,238,993
Accrued interest receivable					1,161,779				976,484
Premises and equipment					4,060,931				2,880,607
Investments in limited liability partnerships					2,908,333				235,858
Cash surrender value of life insurance					8,160,693				7,939,443
Other assets					2,855,115				2,506,762
*Total Assets*					$	300,959,483			$		284,129,536
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits					24,218,658				23,253,557
Interest bearing deposits					194,192,875				186,281,637
Borrowed Funds					42,650,461				39,346,188
Accrued interest payable and other liabilities					6,259,318				2,910,474
*Total Liabilities*					267,321,312				251,791,856

Retained earnings – substantially restricted					33,638,171				32,337,680
*Total Liabilities and Shareholders' Equity*					$	300,959,483			$			284,129,536

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2016		2015		2016			2015
Total interest income	$	2,879,477	$	2,781,464	$		11,383,758	$		10,876,039
Total interest expense		438,467		361,226			1,688,479			1,318,847
Net interest income	$	2,441,010	$	2,420,238	$		9,695,279	$		9,557,192
Provision for loan losses		-		-			-			-
Net interest income after provision for loan losses	$	2,441,010	$	2,420,238	$		9,695,279	$		9,557,192
Service charges on deposit accounts		159,854		156,769			644,863			587,480
Interchange fees		105,574		98,591			426,016			390,869
Net gain on sale of securities		-		293,600			1,442			407,491
Net gain on sale of loans		191,035		179,779			1,083,130			827,938
Net loss on sale of repossessed assets		(10,345)		(31,124)			(23,105)			(20,563)
Net loss on sale of fixed assets		-		-			(8,997)			-
Brokerage fees		47,687		68,767			259,173			413,130
Other income		185,714		153,465			733,848			857,931
Total noninterest income	$	679,519	$	919,847	$		3,116,370	$		3,464,276
Salaries and employee benefits		1,069,180		1,101,073			4,125,359			4,203,923
Occupancy		255,556		263,337			1,048,549			1,073,129
Data processing		257,581		206,465			890,179			890,586
Deposit insurance premiums		10,000		35,000			135,000			156,000
Professional fees		56,573		115,481			250,789			328,129
Advertising and marketing		71,997		72,630			221,631			208,600
Correspondent bank charges		31,677		37,294			135,678			140,056
Other expense		248,992		236,341			927,371			792,443
Total noninterest expenses	$	2,001,556	$	2,067,621	$		7,734,556	$		7,792,866
Income before income tax expense	$	1,118,973	$	1,272,464	$		5,077,093	$		5,228,602
Income tax expense		294,307		264,604			1,482,645			1,399,324
Net Income	$	824,666	$	1,007,860	$		3,594,448	$		3,829,278

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2016				2015		2016		2015
Basic Earnings per common share	0.69				0.84		2.99		3.20
Dilutive Earnings per share	0.69				0.84		2.99		3.19
Net interest margin	3.50%				3.63%		3.52%		3.65%
Return on average assets	1.10%				1.42%		1.22%		1.37%
Return on average equity	9.56%				12.41%		10.58%		11.91%
Efficiency Ratio	64.14%				61.90%		60.37%		59.85%
Average shares outstanding - primary	1,198,979				1,198,679		1,202,215		1,198,530
Average shares outstanding - diluted	1,198,979				1,198,747		1,202,240		1,198,922

Allowance for loan losses:
Balance at beginning of period	$		3,149,801		$	3,246,251	$	3,196,953	$	3,402,355
Charge-offs:
One-to-four family	-				23,605		25,781		52,407
Commercial real estate	-				-		-		146,134
Land/land development	-				-		-		-
Commercial	3,893				-		15,375		-
Consumer	36,925				114,077		227,156		220,225
Gross charge-offs	40,818				137,682		268,312		418,766
Recoveries:
One-to-four family	941				944		23,019		4,560
Commercial real estate	-				-		-		-
Land/land development	-				-		-		-
Commercial	-				50,000		13,129		57,741
Consumer	34,168				37,640		179,303		151,163
Gross recoveries	35,109				88,584		215,451		213,364
Net charge-offs	5,709				49,098		52,861		205,402
Additions charged to operations	-				-		-		-
Balance at end of period	$		3,144,092		$	3,196,953	$	3,144,092	$	3,196,953

Net loan charge-offs (recoveries) to average loans (1)	0.00%				0.03%		0.03%		0.12%

Nonperforming assets (000's)	At December 31,				At September 30,		At June 30,		At December 31,
Loans:	2016				2016		2016		2015
Non-accrual	$		3,595		$	4,019	$	4,198	$	3,793
Past 90 days or more and still accruing	-				-		-		-
Troubled debt restructured	1,232				1,248		814		592
Total nonperforming loans	4,827				5,267		5,012		4,385
Real estate owned	69				126		76		117
Other repossessed assets	-				-		-		-
Total nonperforming assets	$		4,893		$	5,393	$	5,088	$	4,502

Nonperforming assets to total assets			1.63%			1.82%	1.73%		1.58%
Nonperforming loans to total loans			2.41%			2.70%	2.62%		2.36%
Allowance for loan losses to nonperforming loans			65.13%			59.80%	64.47%		72.91%
Allowance for loan losses to total receivable			1.60%			1.65%	1.72%		1.75%
	At December 31,
				2016		2015
Stockholders' equity as a % of total assets	11.18%				11.38%
Book value per share	$	27.86			$	26.95
Common shares outstanding- EOP	1,207.379				1,199,879

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