NORTHEAST INDIANA BANCORP, INC. ANNOUNCES FIRST QUARTER 2022 EARNINGS
HUNTINGTON, Ind., April 14, 2022 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced net income of $1.78 million ($1.49 per diluted common share) for the first quarter ended March 31, 2022. This earnings level was a decrease of $112,000, or 5.9% when compared to earnings from the quarter ended March 31, 2021 of $1.89 million ($1.57 per diluted common share). The current three months earnings equate to an annualized return on average assets (ROA) of 1.70% and a return on average equity (ROE) of 15.07% compared to an ROA of 1.88% and an ROE of 16.47% for the prior year quarter ended March 31, 2021.
Total assets increased $1.8 million, or 1.8% on an annualized basis, to $419.5 million at March 31, 2022 compared to total assets of $417.7 million at December 31, 2021. Total loans increased $5.4 million, or 7.8% annualized, to $279.6 million at March 31, 2022 compared to total loans of $274.3 million at December 31, 2021. Total deposits increased $14.7 million, or 17.2% annualized, to $356.6 million at March 31, 2022 compared to $341.9 million at December 31, 2021.
Shareholders' equity decreased $3.4 million to $45.3 million at March 31, 2022 compared to $48.7 million at December 31, 2021. The decrease in shareholders' equity was a result of accumulated other comprehensive income declining $4.8 million due to a reduction in the fair value of the investment portfolio due to increased market interest rates. The book value of NIDB stock declined $2.80 to $37.60 per common share as of March 31, 2022 compared to $40.40 at December 31, 2021. The number of outstanding common shares was 1,205,435 as of March 31, 2022. The last reported trade of the stock on April 11, 2022 was $46.60 per common share.
Net interest income increased $274,000 in the first quarter of 2022 compared to the same period in 2021. The increase was a result of an eight-basis point increase in net interest margin to 3.80% and an increase in average earning assets of $19.0 million for the first quarter of 2022 compared to the first quarter of 2021.
Non-interest income declined $323,000 in first quarter of 2022 compared to the same period in 2021. The decrease was a result of a decline of $387,000 in gain on sale of loans due to slower mortgage refinances in the first quarter of 2022. Non-interest expense increased $248,000 in the first quarter of 2022 compared to the first quarter of 2021. The increase was primarily due to a $280,000 increase in salaries and employee benefits due to fewer FAS 91 salary deferrals in the first quarter of 2022 without the PPP production and mortgage refinance business that was more prevalent in the first quarter of 2021.
Michael S. Zahn, President/CEO said, "We are very pleased with the start of 2022. We continue to see strong loan and deposit growth in our markets and believe we are well positioned for the increasing rate environment."
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)
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CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | ||||||||||||||||||||||||||||||||
ASSETS
| March 31, 2022 | December 31, | ||||||||||||||||||||||||||||||
Interest-earning cash and cash equivalents | $ | 8,040,570 | $ | 12,185,155 | ||||||||||||||||||||||||||||
Noninterest earning cash and cash equivalents | 4,216,611 | 3,595,989 | ||||||||||||||||||||||||||||||
Total cash and cash equivalents | 12,257,181 | 15,781,144 | ||||||||||||||||||||||||||||||
Interest-earning time deposits | 2,210,000 | 2,210,000 | ||||||||||||||||||||||||||||||
Securities available for sale | 85,245,995 | 86,644,434 | ||||||||||||||||||||||||||||||
Securities held to maturity | 11,791,172 | 11,916,667 | ||||||||||||||||||||||||||||||
Loans held for sale | 1,313,598 | 538,635 | ||||||||||||||||||||||||||||||
Loans receivable, net of allowance for loan loss March 31, 2022 $4,004,074 and December 31, 2021 |
279,624,004 |
274,267,094 | ||||||||||||||||||||||||||||||
Accrued interest receivable | 1,523,198 | 1,489,036 | ||||||||||||||||||||||||||||||
Premises and equipment | 7,122,223 | 6,937,418 | ||||||||||||||||||||||||||||||
FHLB stock | 2,101,600 | 2,426,500 | ||||||||||||||||||||||||||||||
Investments in limited liability partnerships | 1,453,334 | 1,528,334 | ||||||||||||||||||||||||||||||
Cash surrender value of life insurance | 11,407,075 | 11,331,941 | ||||||||||||||||||||||||||||||
Other assets | 3,451,487 | 2,585,660 | ||||||||||||||||||||||||||||||
Total Assets | $ | 419,500,867 | $ | 417,656,863 | ||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 62,072,982 | 56,435,410 | ||||||||||||||||||||||||||||||
Interest bearing deposits | 294,557,300 | 285,513,161 | ||||||||||||||||||||||||||||||
Borrowed Funds | 13,925,706 | 23,001,166 | ||||||||||||||||||||||||||||||
Accrued interest payable and other liabilities | 3,622,201 | 4,013,574 | ||||||||||||||||||||||||||||||
Total Liabilities | 374,178,189 | 368,963,311 | ||||||||||||||||||||||||||||||
Retained earnings – substantially restricted | 45,322,678 | 48,693,552 | ||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 419,500,867 | $ | 417,656,863 | ||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||
Total interest income | $ | 4,033,571 | $ | 3,984,611 | ||||||||||||||||||||||||||||
Total interest expense | 291,129 | 515,909 | ||||||||||||||||||||||||||||||
Net interest income | $ | 3,742,442 | $ | 3,468,702 | ||||||||||||||||||||||||||||
Provision for loan losses | - | 120,000 | ||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | $ | 3,742,442 | $ | 3,348,702 | ||||||||||||||||||||||||||||
Service charges on deposit accounts | 154,398 | 150,822 | ||||||||||||||||||||||||||||||
Interchange fees | 162,545 | 157,127 | ||||||||||||||||||||||||||||||
Net gain on sale of loans | 242,882 | 629,489 | ||||||||||||||||||||||||||||||
Net loss on sale of repossessed assets | - | - | ||||||||||||||||||||||||||||||
Brokerage fees | 54,151 | 77,337 | ||||||||||||||||||||||||||||||
Increase in cash surrender value of life insurance | 75,134 | 64,631 | ||||||||||||||||||||||||||||||
Other income | 215,866 | 148,302 | ||||||||||||||||||||||||||||||
Total noninterest income | $ | 904,976 | $ | 1,227,708 | ||||||||||||||||||||||||||||
Salaries and employee benefits | 1,410,259 | 1,130,162 | ||||||||||||||||||||||||||||||
Occupancy | 282,467 | 271,275 | ||||||||||||||||||||||||||||||
Data processing | 356,919 | 324,992 | ||||||||||||||||||||||||||||||
Deposit insurance premiums | 30,500 | 24,500 | ||||||||||||||||||||||||||||||
Professional fees | 80,905 | 94,284 | ||||||||||||||||||||||||||||||
Advertising and marketing fees | 57,088 | 56,597 | ||||||||||||||||||||||||||||||
Correspondent bank charges | 25,742 | 25,604 | ||||||||||||||||||||||||||||||
Other expense | 242,259 | 310,424 | ||||||||||||||||||||||||||||||
Total noninterest expenses | $ | 2,486,139 | $ | 2,237,838 | ||||||||||||||||||||||||||||
Income before income tax expenses | $ | 2,161,279 | $ | 2,338,572 | ||||||||||||||||||||||||||||
Income tax expense | 380,167 | 445,664 | ||||||||||||||||||||||||||||||
Net Income | $ | 1,781,112 | $ | 1,892,908 | ||||||||||||||||||||||||||||
NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) | ||||||||||||||||||||||||||||||||
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Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||
Basic Earnings per common share | 1.49 | 1.58 | ||||||||||||||||||||||||||||||
Dilutive Earnings per share | 1.49 | 1.57 | ||||||||||||||||||||||||||||||
Net interest margin | 3.80% | 3.72% | ||||||||||||||||||||||||||||||
Return on average assets | 1.70% | 1.88% | ||||||||||||||||||||||||||||||
Return on average equity | 15.07% | 16.47% | ||||||||||||||||||||||||||||||
Efficiency ratio | 53.50% | 47.65% | ||||||||||||||||||||||||||||||
Average shares outstanding- primary | 1,199,001 | 1,200,351 | ||||||||||||||||||||||||||||||
Average shares outstanding- diluted | 1,199,318 | 1,200,618 | ||||||||||||||||||||||||||||||
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Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,998,392 | $ | 3,851,897 | ||||||||||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||||||
One-to-four family | - | - | ||||||||||||||||||||||||||||||
Commercial real estate | - | - | ||||||||||||||||||||||||||||||
Land/land development | - | - | ||||||||||||||||||||||||||||||
Commercial | - | - | ||||||||||||||||||||||||||||||
Consumer | 17,435 | 50,261 | ||||||||||||||||||||||||||||||
Gross charge-offs | 17,435 | 50,261 | ||||||||||||||||||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||||||
One-to-four family | 955 | 1,479 | ||||||||||||||||||||||||||||||
Commercial real estate | 218 | - | ||||||||||||||||||||||||||||||
Land/land development | - | - | ||||||||||||||||||||||||||||||
Commercial | 9,725 | 390 | ||||||||||||||||||||||||||||||
Consumer | 12,219 | 50,970 | ||||||||||||||||||||||||||||||
Gross recoveries | 23,117 | 52,839 | ||||||||||||||||||||||||||||||
Net charge-offs/(recoveries) | (5,682) | (2,578) | ||||||||||||||||||||||||||||||
Additions charged to operations | - | 120,000 | ||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,004,074 | $ | 3,974,475 | ||||||||||||||||||||||||||||
Net loan charge-offs / (recoveries)to average loans (1) | (0.01%) | (0.00%) | ||||||||||||||||||||||||||||||
Nonperforming assets (000's) | At March 31, | At December 31, | ||||||||||||||||||||||||||||||
Loans: | 2022 | 2021 | ||||||||||||||||||||||||||||||
Non-accrual | $ | 2,024 | $ | 2,859 | ||||||||||||||||||||||||||||
Past 90 days or more and still accruing | - | - | ||||||||||||||||||||||||||||||
Troubled debt restructured | 364 | 365 | ||||||||||||||||||||||||||||||
Total nonperforming loans | 2,388 | 3,224 | ||||||||||||||||||||||||||||||
Real estate owned | - | - | ||||||||||||||||||||||||||||||
Other repossessed assets | - | - | ||||||||||||||||||||||||||||||
Total nonperforming assets | $ | 2,388 | $ | 3,224 | ||||||||||||||||||||||||||||
Nonperforming assets to total assets | 0.57% | 0.77% | ||||||||||||||||||||||||||||||
Nonperforming loans to total loans | 0.84% | 1.16% | ||||||||||||||||||||||||||||||
Allowance for loan losses to nonperforming loans | 167.71% | 124.01% | ||||||||||||||||||||||||||||||
Allowance for loan losses to net loans receivable | 1.41% | 1.44% | ||||||||||||||||||||||||||||||
At March 31, | ||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||
Stockholders' equity as a % of total assets | 10.80% | 11.32% | ||||||||||||||||||||||||||||||
Book value per share | $ 37.60 | $ 38.22 | ||||||||||||||||||||||||||||||
Common shares outstanding- EOP | 1,205,435 | 1,202,985 | ||||||||||||||||||||||||||||||
(1) Ratios for the three-month periods are annualized. | ||||||||||||||||||||||||||||||||
SOURCE Northeast Indiana Bancorp, Inc.
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