Northeast Indiana Bancorp, Inc. Announces First Quarter Earnings

HUNTINGTON, Ind., April 13, 2012 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB:  NIDB), the parent company of First Federal Savings Bank, has announced net income of $694,000 ($0.56 per diluted common share) for the first quarter ended March 31, 2012 compared to a net loss of ($14,000) ($0.01 per diluted common share) for the first quarter ended March 31, 2011.  The prior year quarterly net loss was due to an outsized loan loss provision that was taken to improve the Bank's Allowance for Loan Loss coverage ratios during that period.  The current three months earnings equate to an annualized return on average assets (ROA) of 1.07% and a return on average equity (ROE) of 10.51%.       

Commenting on the financial results, First Federal Savings Bank CEO Michael S. Zahn stated, "I'm very proud to announce such strong earnings for the first quarter of 2012.  Even factoring out the loan loss provision difference between the two quarterly periods presented, our net income was still $164,000 higher for the current quarter ended March 31, 2012 compared to the quarter ended March 31, 2011.  This is due to wider net interest margins and stronger mortgage banking activity in the current quarterly period."

Net interest income was $2.3 million for the quarter ended March 31, 2012 compared to $2.1 million for the quarter ended March 31, 2011.  The Company's net interest margin increased 22 basis points to 3.80% for the current quarter compared to 3.58% for the year earlier quarter. 

The Company made a $300,000 provision for loan loss during the quarter ended March 31, 2012 compared to a $1.2 million provision for loan loss for the quarter ended March 31, 2011.  Management elected to take the higher provision levels in the prior year quarterly period due to increased non-performing assets and continued weakness in the real estate markets during that time period.  Net charge-offs were $921,000 for the quarter ended March 31, 2012 compared to net charge-offs of $737,000 for the quarter ended March 31, 2011.  Nonperforming assets decreased $1.3 million or 12.8% to $8.6 million at March 31, 2012 when compared to $9.9 million at December 31, 2011.

Noninterest income increased sharply by $210,000 or 44.3% to $684,000 for the current period compared to $474,000 during the year earlier period.  The increase is due to a significant increase in net gain on sale of loans of $174,000, an increase in brokerage fees and a decline in net losses on the sale of repossessed assets. 

Noninterest expense increased to $1.7 million for the quarter ended March 31, 2012 compared to $1.6 million for the quarter ended March 31, 2011.  An increase in professional fees between quarters was due to added legal and examination fees from the Bank's pending charter conversion.  There were also increases in wages/benefits, occupancy, data processing and other expense that were partially offset by lower FDIC premiums. 

Net loans receivable decreased $4.8 million to $172.1 million at March 31, 2012 when compared to $176.9 million at December 31, 2011.  Total deposits increased sharply by $10.5 million or 5.5% to $200.3 million at March 31, 2012 compared to $189.8 million at December 31, 2011.  The significant increase in deposits came in non-interest bearing demand, NOW, MMDA and Savings balances through First Federal's full service branches.  These newly acquired core deposits were utilized to pay off maturing wholesale borrowed funds.  Borrowed funds declined $9.4 million or 21.9% to $33.6 million at March 31, 2012 compared to $43.0 million at December 31, 2012.

Shareholders' equity increased to $26.5 million at March 31, 2012 compared to $26.1 million at December 31, 2011.  The book value of NIDB stock was $21.39 per common share as of March 31, 2012.  The number of outstanding common shares was 1,239,946.  The last reported trade of the stock on April 11, 2012 was $14.13 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 four full-service Indiana offices in Huntington (2), Warsaw and Fort Wayne.  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.com.

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.

SOURCE Northeast Indiana Bancorp, Inc.