Northeast Indiana Bancorp, Inc. Announces Increase In First Quarter Earnings

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Apr 13, 2015, 01:54 ET

HUNTINGTON, Ind., April 13, 2015 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced that net income increased $52,000 or 6% to $892,000 ($0.74 per diluted common share) for the first quarter ended March 31, 2015 compared to net income of $840,000 ($0.69 per diluted common share) for the first quarter ended March 31, 2014. The current three months earnings equate to an annualized return on average assets (ROA) of 1.29% and a return on average equity (ROE) of 11.59% compared to an ROA of 1.24% and an ROE of 11.91% for the prior year quarter ended March 31, 2014.

Credit quality continued to improve as total non-performing assets declined $2.0 million or 31.9% to $4.4 million at March 31, 2015 compared to $6.4 million at December 31, 2014. This sharp decrease in non-performing assets improved the non-performing loan coverage ratio to 77.4% at the current quarter end as compared to 54.4% at the prior quarter end. This enabled the Company to take no provision for loan losses during the three months ended March 31, 2015.

Shareholders' equity increased to $31.1 million at March 31, 2015 compared to $30.4 million at December 31, 2014. The book value of NIDB stock was $25.94 per common share as of March 31, 2015. The number of outstanding common shares was 1,199,879. The last reported trade of the stock on April 10, 2015 was $26.35 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*	March 31, 2015		December 31, 2014
Interest-earning cash and cash equivalents	$	8,807,853	$	5,969,837
Noninterest earning cash and cash equivalents	6,115,167		5,015,780
Total cash and cash equivalents	14,923,020		10,985,617
Interest-earning time deposits	8,849,764		8,355,733
Securities available for sale	71,174,132		72,717,037
Securities held to maturity	1,102,513		1,129,168
Loans held for sale	-		125,000
Loans receivable, net of allowance for loan loss March 31, 2015 $3,262,423 and December 31, 2014 $3,402,355	167,573,413		168,728,783
Accrued interest receivable	984,764		933,935
Premises and equipment	2,949,008		2,998,086
Investments in limited liability partnerships	46,519		34,291
Cash surrender value of life insurance	7,777,193		7,722,193
Other assets	2,059,352		2,419,981
*Total Assets*	$	277,439,678	$	276,149,824
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits	19,988,520		20,666,024
Interest bearing deposits	196,325,228		192,496,447
Borrowed Funds	27,053,743		29,911,662
Accrued interest payable and other liabilities	2,945,148		2,663,897
*Total Liabilities*	246,312,639		245,738,030

Retained earnings – substantially restricted	31,127,039		30,411,794
*Total Liabilities and Shareholders' Equity*	$	277,439,678	$	276,149,824

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	March 31,
	2015		2014
Total interest income	$	2,676,119	$	2,627,946
Total interest expense		317,264		313,707
Net interest income	$	2,358,855	$	2,314,239
Provision for loan losses		-		225,000
Net interest income after provision for loan losses	$	2,358,855	$	2,089,239
Service charges on deposit accounts		117,463		116,845
Net gain (loss) on sale of securities		120,107		(7,211)
Net gain on sale of loans		153,434		437,334
Net gain (loss) on sale of repossessed assets		(2,415)		21,690
Brokerage fees		134,067		123,180
Increase in cash surrender value of life insurance		55,001		56,575
Other income		211,126		170,980
Total noninterest income	$	788,783	$	919,393
Salaries and employee benefits		1,043,306		927,244
Occupancy		289,970		294,625
Data processing		216,497		201,003
Deposit insurance premiums		36,000		60,000
Professional fees		82,644		103,166
Correspondent bank charges		33,089		28,931
Other expense		247,172		202,770
Total noninterest expenses	$	1,948,678	$	1,817,739
Income before income tax expenses	$	1,198,960	$	1,190,893
Income tax expense		307,055		350,751
Net Income	$	891,905	$	840,142

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
	Three Months Ended March 31,
	2015		2014
Basic Earnings per common share	0.74		0.69
Dilutive Earnings per share	0.74		0.69
Net interest margin	3.64%		3.63%
Return on average assets	1.29%		1.24%
Return on average equity	11.59%		11.91%
Efficiency ratio	61.91%		56.21%
Average shares outstanding- primary	1,198,073		1,223,509
Average shares outstanding- diluted	1,198,895		1,224,127

Allowance for loan losses:
Balance at beginning of period	$	3,402,355	$	3,355,534
Charge-offs:
One-to-four family	6,960		17,547
Commercial real estate	146,134		-
Land/land development	-		-
Commercial	-		-
Consumer	30,980		56,900
Gross charge-offs	184,074		74,447
Recoveries:
One-to-four family	1,652		1,576
Commercial real estate	-		-
Land/land development	-		-
Commercial	1,703		-
Consumer	40,787		15,104
Gross recoveries	44,142		16,680
Net charge-offs	139,932		57,767
Additions charged to operations	-		225,000
Balance at end of period	$	3,262,423	$	3,522,767

Net loan charge-offs to average loans (1)	0.32%		0.14%

Nonperforming assets (000's)	At March 31,		At December 31,
Loans:	2015		2014
Non-accrual	$	3,338	$	4,396
Past 90 days or more and still accruing	-		-
Troubled debt restructured	878		1,862
Total nonperforming loans	4,216		6,258
Real estate owned	138		131
Other repossessed assets	-		3
Total nonperforming assets	$	4,354	$	6,392

Nonperforming assets to total assets	1.57%		2.31%
Nonperforming loans to total loans	2.47%		3.64%
Allowance for loan losses to nonperforming loans	77.37%		54.36%
Allowance for loan losses to net loans receivable	1.95%		2.02%


	At March 31,
	2015		2014

Stockholders' equity as a % of total assets	11.22%		10.46%
Book value per share	$	25.94	$	23.42
Common shares outstanding- EOP	1,199,879		1,216,286

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