NORTHEAST INDIANA BANCORP, INC. ANNOUNCES FIRST QUARTER 2024 EARNINGS

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Apr 24, 2024, 17:22 ET

HUNTINGTON, Ind., April 24, 2024 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income of $722,000 ($0.30 per diluted common share) for the first quarter ended March 31, 2024 compared to earnings from the quarter ended March 31, 2023 of $1.17 million ($0.49 per diluted common share). The current three months earnings equate to an annualized return on average assets (ROA) of 0.57% and a return on average equity (ROE) of 6.26% compared to an ROA of 1.04% and an ROE of 10.75% for the prior year quarter ended March 31, 2023.

Total assets increased $10.7 million, or 8.6% on an annualized basis, to $509.4 million at March 31, 2024 compared to total assets of $498.7 million at December 31, 2023. Total loans increased $8.7 million, or 9.4% on an annualized basis, to $379.3 million at March 31, 2024 compared to total loans of $370.7 million at December 31, 2023. Total deposits increased $2.3 million, or 2.3% on an annualized basis, to $403.4 million at March 31, 2024 compared to $401.1 million at December 31, 2023.

Shareholders' equity decreased $131,000 to $46.3 million at March 31, 2024 compared to $46.4 million at December 31, 2023. The decrease in shareholders' equity was a result of the combination of the fair value of the investment portfolio decreasing $471,000 and dividends paid of $413,000 slightly exceeding net income for the first quarter. The book value of NIDB stock decreased $0.10 to $19.05 per common share as of March 31, 2024 compared to $19.15 at December 31, 2023. The number of outstanding common shares was 2,429,698 as of March 31, 2024.

Net interest income decreased $2,000 in the first quarter of 2024 compared to the same period in 2023. Continued margin pressure saw gains in interest income offset by increases in interest expense. An increase in average earning assets of $51.6 million was countered by a 36 basis point decrease in net interest margin to 2.99% for the first quarter of 2024 compared to the first quarter of 2023. The decline in net interest margin was primarily due to an increase of 108 basis points in costs of interest-bearing liabilities of 3.10% in the first quarter of 2024 compared to 2.02% in the first quarter of 2023 matched against an increase of 58 basis points in yield on interest earning assets to 5.55% in the first quarter of 2024 compared to 4.97% in the first quarter of 2023.

Provision for loan loss expense of $500,000 in the first quarter of 2024 decreased $280,000 as compared to the previous quarter expense of $780,000. The first quarter expense was a result of the CECL accounting standard's impact related to new growth of the loan portfolio in addition to an increase in specific reserves on existing loans.

Non-interest income declined $75,000 in the first quarter of 2024 compared to the same period in 2023. The decrease was primarily the result of a decline of $30,000 in gain on sale of loans due to slower mortgage volume in the first quarter of 2024 compared to the first quarter of 2023 and a decline of $65,000 in brokerage fee income with the bank transitioning its investment advisory business to a third-party during the 4^th quarter of 2023. Non-interest expense increased $114,000 in the first quarter of 2024 compared to the first quarter of 2023. In addition to the growth in expenses attributed to a growing balance sheet, the increase in non-interest expense is primarily due to an increase in FDIC deposit insurance premiums of $25,000.

*All share data has been adjusted to reflect Northeast Indiana Bancorp, Inc.'s two-for-one stock split effective July 14, 2023.

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 six full-service Indiana offices in Huntington (2), Warsaw (2) 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

	March 31,	December 31,	March 31,
Balance Sheet (Unaudited)	2024	2023	2023

*Assets*
Interest-earning cash and cash equivalents	$ 3,760,954	$ 4,304,296	$ 2,646,912
Non-interest earning cash and cash equivalents	2,380,391	1,166,180	1,940,693
Total cash and cash equivalents	6,141,345	5,470,476	4,587,606
Interest-earning time deposits	4,520,000	4,320,000	1,230,000
Securities available for sale	75,898,559	76,228,755	78,278,059
Securities held to maturity	12,500,863	12,754,763	12,787,199
Loans held for sale	74,900	-	403,600
Loans, gross	385,129,684	375,992,822	330,160,388
Allowance for loan losses	(5,790,301)	(5,335,305)	(4,421,505)
Loans, net	379,339,383	370,657,517	325,738,883
Accrued interest receivable	2,455,724	2,354,636	1,982,785
Premises and equipment	7,752,161	7,366,169	7,376,693
FHLB Stock	2,835,000	2,227,500	2,101,600
Investment in limited partnerships	853,334	928,334	1,153,334
Cash surrender value of life insurance	12,334,196	11,751,653	11,703,266
Other assets	4,655,401	4,624,206	4,803,252
Total Assets	$ 509,360,866	$ 498,684,009	$ 452,146,276

*Liabilities and Stockholders' Equity*
Non-interest bearing deposits	$ 50,297,770	$ 54,764,981	$ 54,547,736
Interest bearing deposits	353,098,422	346,307,200	316,197,968
Borrowed funds	56,000,000	47,250,000	34,000,000
Accrued interest payable and other liabilities	3,675,681	3,941,438	3,582,889
Total Liabilities	463,071,873	452,263,619	408,328,593
Stockholders' equity	46,288,993	46,420,390	43,817,683
Total Liabilities and Stockholders' Equity	$ 509,360,866	$ 498,684,009	$ 452,146,276


	Three months ended
	March 31,	December 31,	March 31,
Income Statement (Unaudited)	2024	2023	2023

*Net interest income*
Total interest income	$ 6,729,934	$ 6,702,608	$ 5,388,127
Total interest expense	3,105,342	2,952,000	1,761,895
Net interest income	3,624,592	3,750,608	3,626,232
Provision for loan losses	500,000	780,000	90,000
Net interest income after provision for loan losses	3,124,592	2,970,608	3,536,232

*Non-interest income*
Service charges on deposit accounts	178,670	184,623	188,222
Interchange fees	200,018	195,918	192,338
Loan servicing fees	109,708	108,432	102,573
Net gain on sale of loans	36,024	67,979	65,793
Brokerage fees	1,182	29,086	66,485
Increase in cash surrender value of life insurance	82,543	75,763	73,648
Other income	86,643	73,390	80,671
Total non-interest income	694,788	735,191	769,730

*Non-interest expense*
Salaries and employee benefits	1,640,271	1,443,480	1,687,245
Occupancy	355,051	340,005	340,935
Data processing	438,832	387,894	394,597
Deposit insurance premiums	74,000	54,000	49,500
Professional fees	104,013	207,204	111,035
Advertising and marketing fees	87,680	129,495	91,717
Correspondent bank charges	39,596	39,288	38,732
Other expense	341,495	335,295	253,251
Total non-interest expense	3,080,938	2,936,661	2,967,012

Income before income taxes	738,442	769,138	1,338,950
Income tax expense	16,252	27,866	168,494
Net income	$ 722,190	$ 741,272	$ 1,170,456

	Three months ended
	March 31,	December 31,	March 31,
Selected Financial Ratios and Other Financial Data (Unaudited)	2024	2023	2023

Average shares outstanding - basic	2,405,122	2,401,584	2,401,319
Average shares outstanding - diluted	2,405,122	2,401,584	2,401,406
Basic earnings per share	$ 0.30	$ 0.31	$ 0.49
Diluted earnings per share	$ 0.30	$ 0.31	$ 0.49
Net interest margin (1)	2.99 %	3.16 %	3.35 %
Return on average assets (1)	0.57 %	0.60 %	1.04 %
Return on average equity (1)	6.26 %	6.75 %	10.75 %
Efficiency ratio	71.33 %	65.47 %	67.49 %

Allowance for loan losses:
Balance, beginning of period	$ 5,335,305	$ 4,529,631	$ 3,996,619
Charge-offs:
One-to-four family	-	-	-
Commercial real estate	-	-	-
Land/land development	-	-	-
Commercial	-	-	-
Consumer	69,725	68,491	36,130
Gross charge-offs	69,725	68,491	36,130
Recoveries:
One-to-four family	-	10,664	-
Commercial real estate	-	-	-
Land/land development	-	-	-
Commercial	-	200	923
Consumer	24,721	38,301	20,093
Gross recoveries	24,721	49,165	21,016
Net charge-offs (recoveries)	45,004	19,326	15,114
CECL adjustment	-	-	350,000
Provision for loan losses	500,000	825,000	90,000
Balance, end of period	$ 5,790,301	$ 5,335,305	$ 4,421,505

Net loan charge-offs (recoveries) to average loans (1)	0.05 %	0.02 %	0.02 %

	As of
	March 31,	December 31,	March 31,
Non-performing assets	2024	2023	2023
Loans:
Non-accrual	$ 6,547,940	$ 6,415,623	$ 4,137,597
Past 90 days or more and still accruing	-	-	-
Troubled debt modification	524,970	524,970	525,020
Total non-performing loans	7,072,910	6,940,593	4,662,617
Real estate owned	-	-	-
Other repossessed assets	-	-	-
Total non-performing assets	$ 7,072,910	$ 6,940,593	$ 4,662,617

Non-performing assets to total assets	1.39 %	1.39 %	1.03 %
Non-performing loans to gross loans	1.84 %	1.85 %	1.41 %
Allowance for loan losses to non-performing loans	81.87 %	76.87 %	94.83 %
Allowance for loan losses to gross loans	1.50 %	1.42 %	1.34 %

Other financial ratios
Stockholders' equity as a % of total assets	9.09 %	9.31 %	9.69 %
Book value per share	$ 19.05	$ 19.15	$ 18.01
Common shares outstanding	2,429,698	2,423,698	2,432,670

(1) Ratios for three-month periods are annualized
(2) All share data has been adjusted for the 2:1 stock split on July 14, 2023.