Northeast Indiana Bancorp, Inc. Announces Increase In Year To Date And Second Quarter Earnings

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Jul 17, 2019, 10:17 ET

HUNTINGTON, Ind., July 17, 2019 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income for the six months ended June 30, 2019 increased by $49,000 to $2.18 million ($1.82 per diluted common share) when compared to net income of $2.13 million ($1.78 per diluted common share) for the six months ended June 30, 2018. The current six months earnings equate to an annualized ROA of 1.25% and a ROE of 11.32% compared to an annualized ROA of 1.33% and an annualized ROE of 11.91% for the six months ended June 30, 2018.

Net income also increased by $93,000 or 9.1% to $1.12 million ($0.94 per diluted common share) for the Company's second quarter ended June 30, 2019 when compared to net income of $1.03 million ($0.86 per diluted common share) for the second quarter ended June 30, 2018. The current three months earnings equate to an annualized return on average assets (ROA) of 1.26% and a return on average equity (ROE) of 11.45% compared to an annualized ROA of 1.27% and a ROE of 11.42% for the three months ended June 30, 2018.

Total Assets increased $24.5 million or 7.3% (14.6% annualized) to $358.7 million at June 30, 2019 compared to $334.2 million at December 31, 2018. Net loans increased $13.7 million or 5.7% to $253.8 million at June 30, 2019 compared to $240.1 million at December 31, 2018. Total deposits increased $12.4 million or 5.3% to $245.8 million at June 30, 2019 compared to $233.4 million at December 31, 2018. Shareholder's equity increased $2.9 million or 7.7% to $40.2 million at June 30, 2019 compared to $37.3 million at December 31, 2018. The book value of NIDB's stock was $33.34 per common share as of June 30, 2019. The number of outstanding common shares was 1,206,327 as of the same date. The last reported trade of the stock on July 16, 2019 was $36.50 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.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*	June 30, 2019		December 31, 2018

Interest-earning cash and cash equivalents	$	13,782,465	$	3,605,610
Noninterest earning cash and cash equivalents	2,480,749		2,685,698
Total cash and cash equivalents	16,263,214		6,291,308
Interest-earning time deposits	3,436,000		3,436,000
Securities available for sale	65,322,385		63,898,265
Securities held to maturity	1,117,025		1,233,843
Loans held for sale	561,700		453,100
Loans receivable, net of allowance for loan loss June 30, 2019 $2,984,907 and December 31, 2018 $2,856,319	253,770,737		240,075,827
Accrued interest receivable	1,334,313		1,314,404
Premises and equipment	3,930,665		3,988,192
Investments in limited liability partnerships	2,278,334		2,428,334
Cash surrender value of life insurance	8,726,193		8,613,693
Other assets	1,920,121		2,477,748
*Total Assets*	$	358,660,687	$		334,210,714
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits	29,516,062		26,751,611
Interest bearing deposits	216,299,200		206,618,957
Borrowed Funds	68,877,495		59,763,974
Accrued interest payable and other liabilities	3,743,556		3,735,912
*Total Liabilities*	318,436,313		296,870,454

Retained earnings – substantially restricted	40,224,374		37,340,260
*Total Liabilities and Shareholder's Equity*	$	358,660,687	$		334,210,714

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Total interest income	$	4,094,696	$	3,485,131	$	8,009,553	$	6,819,863
Total interest expense		1,158,262		759,055		2,210,956		1,434,230
Net interest income	$	2,936,434	$	2,726,076	$	5,798,597	$	5,385,633
Provision for loan losses		75,000		-		150,000		-
Net interest income after provision for loan losses	$	2,861,434	$	2,726,076	$	5,648,597	$	5,385,633
Service charges on deposit accounts		176,845		151,642		348,902		321,045
Interchange Fees		151,683		136,053		282,867		261,945
Net gain (loss) on sale of securities		98,036		-		98,036		(4,947)
Net gain on sale of loans		117,351		120,806		262,269		407,068
Net gain on sale of repossessed assets		-		149		7,608		149
Brokerage fees		59,708		62,294		123,055		119,243
Increase in cash surrender value of life insurance		55,500		56,626		112,500		113,750
Other income		111,545		128,049		282,561		250,629
Total noninterest income	$	770,668	$	655,619	$	1,517,798	$	1,468,882
Salaries and employee benefits		1,311,045		1,210,197		2,597,374		2,378,287
Occupancy		276,878		259,689		561,538		525,231
Data processing		225,734		295,549		473,522		577,251
Deposit insurance premiums		24,000		24,000		24,000		48,000
Professional fees		123,483		66,261		233,559		141,895
Correspondent bank charges		37,237		33,689		74,553		63,235
Other expense		336,520		314,427		691,143		645,361
Total noninterest expenses	$	2,334,897	$	2,203,812	$	4,655,689	$	4,379,260
Income before income tax expenses	$	1,297,205	$	1,177,883	$	2,510,706	$	2,475,255
Income tax expense		176,550		150,710		332,198		345,945
Net Income	$	1,120,655	$	1,027,173	$	2,178,508	$	2,129,310

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019		2018
Basic Earnings per common share	0.94			0.86			1.82		1.78
Dilutive Earnings per share	0.94			0.86			1.82		1.78
Net interest margin	3.51%			3.62%			3.55%		3.60%
Return on average assets	1.26%			1.27%			1.25%		1.33%
Return on average equity	11.45%			11.42%			11.32%		11.91%
Efficiency ratio	62.98%			65.17%			63.63%		63.89%
Average shares outstanding - primary	1,197,327			1,194,027			1,196,619		1,193,633
Average shares outstanding - diluted	1,197,327			1,194,027			1,197,419		1,194,433

Allowance for loan losses:
Balance at beginning of period	$	2,823,219		$	2,757,515		$	2,856,319	$	2,746,523
Charge-offs:
One-to-four family	-			3,147			-		10,601
Commercial real estate	-			-			73,705		-
Land/land development	-			-			-		-
Commercial	-			-			25,000		2,250
Consumer	20,915			49,044			85,409		92,979
Gross charge-offs	20,915			52,191			184,114		105,830
Recoveries:
One-to-four family	803			349			1,724		690
Commercial real estate	64,040			61,237			64,040		66,755
Land/land development	-			-			-		-
Commercial	22,068			1,480			22,068		7,428
Consumer	20,692			40,095			74,870		92,919
Gross recoveries	107,603			103,161			162,702		167,792
Net charge-offs/(recoveries)	(86,688)			(50,970)			21,412		(61,962)
Additions charged to operations	75,000			-			150,000		-
Balance at end of period	$	2,984,907		$	2,808,485		$	2,984,907	$	2,808,485

Net loan charge-offs/(recoveries) to average loans (1)	(0.13%)			(0.09%)			0.02%		(0.05%)

Nonperforming assets (000's)	At June 30,			At March 31,			At December 31,
Loans:	2019			2019			2018
Non-accrual	$		4,970	$		2,291	$	2,674
Past 90 days or more and still accruing	-			-			-
Troubled debt restructured	530			552			170
Total nonperforming loans	5,500			2,843			2,844
Real estate owned	-			-			33
Other repossessed assets	-			-			-
Total nonperforming assets	$		5,500	$		2,843	$	2,877

Nonperforming assets to total assets	1.53%			0.83%			0.86%
Nonperforming loans to total loans	2.14%			1.14%			1.17%
Allowance for loan losses to nonperforming loans	54.27%			99.30%			100.42%
Allowance for loan losses to net loans receivable	1.18%			1.15%			1.19%

	At June 30,
	2019			2018

Stockholders' equity as a % of total assets	11.22%			11.24%
Book value per share	$		33.34	$	30.13
Common shares outstanding- EOP	1,206,327			1,206,327
(1) Ratios for the three-month periods are annualized.