Northeast Indiana Bancorp, Inc. Announces Full Year 2013 Earnings And Quarterly Earnings

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Feb 07, 2014, 03:34 ET

HUNTINGTON, Ind., Feb. 7, 2014 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced annual earnings for the full year 2013 of $2.5 million ($2.01 per diluted common share). This is a decrease of $380,000 or 13.3% compared to net income of $2.9 million ($2.31 per diluted common share) for the full year 2012. The full year 2013 earnings equates to a return on average assets of 0.92% and a return on average equity of 8.85% compared to an ROA of 1.06% and an ROE of 10.38% for the full year 2012.

The Company also announced quarterly earnings for the three months ended December 31, 2013 of $652,000 ($0.53 per diluted common share) compared to net income of $913,000 ($0.74 per diluted common share) for the three months ended December 31, 2012. The current quarter's earnings equates to an ROA of 0.96% and an ROE of 9.31% compared to an ROA of 1.32% and an ROE of 13.07% for the prior year quarter ended December 31, 2012.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "After a record earnings year in 2012, we were able to follow that up with the 3^rd highest earnings level in the Bank's 100 plus year history in 2013. Our dedication to community banking is instrumental to our success. Besides strong earnings, we also made significant progress at reducing our non-performing assets during the current year. I'm very pleased with the performance our dedicated team was able to deliver to our shareholders in 2013."

Total assets decreased $2.8 million to $268.6 million at December 31, 2013 compared to December 31, 2012 assets of $271.4 million. Total deposits decreased $2.7 million to $208.9 million at December 31, 2013 from $211.6 million at December 31, 2012.

The Company paid out cash dividends of $947,000 to shareholders during the year ended December 31, 2013. The book value of NIDB stock was $22.65 per common share as of December 31, 2013 as compared to a book value of $22.53 per common share as of December 31, 2012. The Company also repurchased 12,000 shares for treasury in 2013 under a previously announced stock repurchase program. The number of outstanding common shares was 1,227,946. The last reported trade of the stock on February 4, 2014 was $20.61 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 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.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.

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

*ASSETS*					December 31, 2013				December 31, 2012
Interest-earning cash and cash equivalents					$	5,476,740			$		16,687,647
Noninterest earning cash and cash equivalents					2,481,418				3,997,988
Total cash and cash equivalents					7,958,158				20,685,635
Securities available for sale					86,295,635				71,353,159
Interest-earning deposits in financial institutions					7,135,000				5,910,000
Securities held to maturity					1,466,003				1,326,984
Loans held for sale					142,500				1,549,475
Loans receivable, net of allowance for loan loss Dec. 31, 2013 $3,355,534 and Dec. 31, 2012 $3,846,021					150,790,666				154,746,404
Accrued interest receivable					932,105				929,061
Premises and equipment					2,929,520				2,989,226
Investments in limited liability partnerships					-				74,625
Cash surrender value of life insurance					7,497,893				7,261,343
Other assets					3,410,137				4,577,142
*Total Assets*					$	268,557,617			$		271,403,054
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits					18,196,448				20,123,659
Interest bearing deposits					190,686,051				191,462,228
Borrowed Funds					28,755,460				28,902,484
Accrued interest payable and other liabilities					3,109,814				2,975,529
*Total Liabilities*					240,747,773				243,463,900

Retained earnings – substantially restricted					27,809,844				27,939,154
*Total Liabilities and Shareholders' Equity*					$	268,557,617			$			271,403,054

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2013		2012		2013			2012
Total interest income	$	2,545,756	$	2,693,418	$		9,820,554	$		11,191,182
Total interest expense		321,798		427,843			1,354,112			2,126,010
Net interest income	$	2,223,958	$	2,265,575	$		8,466,442	$		9,065,172
Provision for loan losses		450,000		450,000			1,250,000			1,450,000
Net interest income after provision for loan losses	$	1,773,958	$	1,815,575	$		7,216,442	$		7,615,172
Service charges on deposit accounts		126,922		139,367			509,473			533,067
Net gain on sale of securities		208,585		335,118			244,945			335,118
Net gain on sale of loans		213,808		320,055			952,841			1,012,000
Net loss on sale of repossessed assets		(97,388)		(79,105)			(82,337)			(164,582)
Net loss on sale of fixed assets		(7,001)		(1,834)			(7,286)			(1,500)
Brokerage fees		101,419		96,301			423,125			413,539
Other income		230,053		187,102			911,640			840,568
Total noninterest income	$	776,398	$	997,004	$		2,952,401	$		2,968,210
Salaries and employee benefits		883,234		824,361			3,534,070			3,470,312
Occupancy		265,905		274,555			1,071,202			983,853
Data processing		192,183		212,772			787,886			832,700
Deposit insurance premiums		60,000		60,000			240,000			240,000
Professional fees		140,726		83,223			340,694			361,105
Correspondent bank charges		29,362		29,262			119,788			117,804
Other expense		210,755		226,162			860,328			841,075
Total noninterest expenses	$	1,782,165	$	1,710,335	$		6,953,968	$		6,846,849
Income before income tax expense	$	768,191	$	1,102,244	$		3,214,875	$		3,736,533
Income tax expense		116,155		189,057			737,967			880,067
Net Income	$	652,036	$	913,187	$		2,476,908	$		2,856,466

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended December 31,					Twelve Months Ended December 31,
	2013			2012		2013		2012
Basic Earnings per common share	0.53			0.74		2.01		2.31
Dilutive Earnings per share	0.53			0.74		2.01		2.31
Net interest margin	3.48%			3.52%		3.36%		3.61%
Return on average assets	0.96%			1.32%		0.92%		1.06%
Return on average equity	9.31%			13.07%		8.85%		10.38%
Efficiency Ratio	59.40%			52.42%		60.90%		56.90%
Average shares outstanding - primary	1,225,561			1,234,380		1,232,212		1,234,253
Average shares outstanding - diluted	1,225,561			1,234,417		1,232,407		1,234,408

Allowance for loan losses:
Balance at beginning of period	$		3,847,260	$	3,865,907	$	3,846,021	$	4,061,508
Charge-offs:
One-to-four family	132,835			1,632		208,021		132,686
Commercial real estate	902,253			6,421		910,736		188,347
Land/land development	-			-		145,000		653,451
Commercial	34,867			424,970		672,258		601,315
Consumer	68,633			52,922		209,271		192,028
Gross charge-offs	1,138,588			485,945		2,145,286		1,767,828
Recoveries:
One-to-four family	1,285			2,714		6,271		11,549
Commercial real estate	-			-		72,801		-
Land/land development	2,500			-		32,500		-
Commercial	168,123			-		193,971		1,233
Consumer	24,954			13,345		99,256		89,559
Gross recoveries	196,862			16,059		404,799		102,341
Net charge-offs	941,726			469,886		1,740,487		1,665,487
Additions charged to operations	450,000			450,000		1,250,000		1,450,000
Balance at end of period	$		3,355,534	$	3,846,021	$	3,355,534	$	3,846,021

Net loan charge-offs (recoveries) to average loans (1)	0.61%			0.28%		1.14%		0.96%

Nonperforming assets (000's)	At December 31,			At September 30,		At June 30,		At December 31,
Loans:	2013			2013		2013		2012
Non-accrual	$		5,443	$	6,461	$	5,553	$	5,464
Past 90 days or more and still accruing	-			-		-		-
Troubled debt restructured	1,398			1,379		1,666		3,347
Total nonperforming loans	6,841			7,840		7,219		8,811
Real estate owned	508			589		906		1,719
Other repossessed assets	20			4		-		-
Total nonperforming assets	$		7,369	$	8,433	$	8,126	$	10,530

Nonperforming assets to total assets	2.74%				3.10%	2.99%		3.88%
Nonperforming loans to total loans	4.44%				5.26%	4.92%		5.56%
Allowance for loan losses to nonperforming loans	49.06%				49.07%	51.51%		43.65%
Allowance for loan losses to total receivable	2.23%				2.58%	2.53%		2.49%
	At December 31,
	2013			2012
Stockholders' equity as a % of total assets	10.36%			10.30%
Book value per share	$	22.65		$	22.53
Common shares outstanding- EOP	1,227,946			1,239,946

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