NORTHEAST INDIANA BANCORP, INC. ANNOUNCES FIRST QUARTER 2022 EARNINGS

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Apr 14, 2022, 15:00 ET

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)
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

*ASSETS*														March 31, 2022		December 31, 2021
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 $3,998,392														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)
	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
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.