Northeast Indiana Bancorp, Inc. Announces Increased Quarterly Earnings

News provided by

Oct 12, 2017, 11:16 ET

HUNTINGTON, Ind., Oct. 12, 2017 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income increased $505,000 or 62.3% to $1.31 million ($1.10 per diluted common share) for the Company's third quarter ended September 30, 2017 compared to net income of $810,000 ($0.67 per diluted common share) for the third quarter ended September 30, 2016. The current three months earnings were impacted by a negative Loan Loss Provision that increased earnings roughly $400,000, net of taxes. This entry was made possible due to two large commercial loan recoveries that were receipted during the quarter. Core earnings for the three months ended September 30, 2017 would have been roughly $915,000 without the negative Loan Loss Provision entry. The current three months earnings equates to an annualized return on average assets (ROA) of 1.74% and a return on average equity (ROE) of 14.70% compared to an annualized ROA of 1.09% and an ROE of 9.38% for the three months ended September 30, 2016.

Net income for the nine months ended September 30, 2017 increased $134,000 or 4.9% to $2.90 million ($2.41 per diluted common share), compared to net income of $2.77 million ($2.31 per diluted common share) for the nine months ended September 30, 2016. The current nine months earnings were also impacted by the negative Loan Loss Provision mentioned above. Core earnings for the nine months ended September 30, 2017 would have been roughly $2.50 million without the negative Loan Loss Provision. The current nine months earnings equates to an annualized ROA of 1.28% and an ROE of 11.08% compared to an annualized ROA of 1.26% and an annualized ROE of 10.92% for the nine months ended September 30, 2016.

Net Loans Receivable have increased $15.0 million or 7.6% to $211.8 million at September 30, 2017 compared to $196.8 million at December 31, 2016. Non-performing Assets have declined $2.1 million or 43.8% to $2.7 million at September 30, 2017 compared to $4.8 million at December 31, 2016. Shareholder's equity was $36.4 million at September 30, 2017 compared to $33.6 million at December 31, 2016. The book value of NIDB's stock was $29.97 per common share as of September 30, 2017. The number of outstanding common shares was 1,214,879 as of the same date. The last reported trade of the stock on October 10, 2017 was $33.70 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*						September 30, 2017					December 31, 2016
Interest-earning cash and cash equivalents						$	7,625,797				$		4,591,440
Noninterest earning cash and cash equivalents						3,358,782					2,493,983
Total cash and cash equivalents						10,984,579					7,085,423
Interest- earning time deposits						1,470,000					9,082,982
Securities available for sale						59,979,789					66,171,764
Securities held to maturity						1,730,352					2,582,029
Loans held for sale						261,250					109,000
Loans receivable, net of allowance for loan loss September 30, 2017 $2,912,563 and December 31, 2016 $3,144,092						211,816,388					196,781,434
Accrued interest receivable						1,098,017					1,161,779
Premises and equipment						4,116,284					4,060,931
Investments in limited liability partnerships						2,758,333					2,908,333
Cash surrender value of life insurance						8,326,818					8,160,693
Other assets						1,859,044					2,855,115
*Total Assets*						$	304,400,854				$		300,959,483
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits						24,199,642					24,218,658
Interest bearing deposits						191,474,551					194,192,875
Borrowed Funds						47,646,577					42,650,461
Accrued interest payable and other liabilities						4,664,961					6,259,318
*Total Liabilities*						267,985,731					267,321,312

Retained earnings – substantially restricted						36,415,123					33,638,171
*Total Liabilities and Shareholders' Equity*						$	304,400,854				$			300,959,483

CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2017		2016		2017				2016
Total interest income		$	3,096,331	$	2,859,937	$		9,018,361		$		8,504,280
Total interest expense			550,848		426,473			1,525,677				1,250,012
Net interest income		$	2,545,483	$	2,433,464	$		7,492,684		$		7,254,268
Provision for loan losses			(650,000)		-			(600,000)				-
Net interest income after provision for loan losses		$	3,195,483	$	2,433,464	$		8,092,684		$		7,254,268
Service charges on deposit accounts			162,963		176,046			450,672				485,009
Interchange Fees			139,549		116,571			410,029				345,712
Net gain (loss) on sale of securities			785		2,900			(6,931)				1,442
Net gain on sale of loans			126,705		164,428			471,475				892,095
Net gain (loss) on sale of repossessed assets			1,372		-			(6,426)				(12,759)
Brokerage fees			52,773		60,448			164,426				211,486
Increase in cash surrendervalue of life insurance			55,375		54,013			166,125				164,438
Other income			122,513		63,254			362,249				349,429
Total noninterest income		$	662,035	$	637,660	$		2,011,619		$		2,436,852
Salaries and employee benefits			1,085,731		1,039,429			3,279,354				3,056,179
Occupancy			240,762		271,519			742,231				792,993
Data processing			168,148		229,659			702,699				632,599
Deposit insurance premiums			28,000		35,000			78,000				125,000
Professional fees			116,448		57,676			281,289				194,217
Correspondent bank charges			30,950		33,980			93,655				103,999
Other expense			274,729		271,843			901,730				828,013
Total noninterest expenses		$	1,944,768	$	1,939,106	$		6,078,958		$		5,733,000
Income before income tax expense		$	1,912,750	$	1,132,018	$		4,025,345		$		3,958,120
Income tax expense			597,861		321,805			1,121,207				1,188,338
Net Income		$	1,314,889	$	810,213	$		2,904,138		$		2,769,782

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Basic Earnings per common share	1.10			0.67		2.41			2.31
Dilutive Earnings per share	1.10			0.67		2.41			2.31
Net interest margin	3.61%			3.52%		3.54%			3.52%
Return on average assets	1.74%			1.09%		1.28%			1.26%
Return on average equity	14.70%			9.38%		11.08%			10.92%
Efficiency ratio	60.63%			63.14%		63.96%			59.16%
Average shares outstanding- primary	1,200,371			1,204,441		1,205,084			1,200,083
Average shares outstanding- diluted	1,200,538			1,204,441		1,206,284			1,200,116
Allowance for loan losses:
Balance at beginning of period	$		2,660,491	$	3,231,811	$		3,149,092	$			3,196,953
Charge-offs:
One-to-four family	56,230			18,944		56,230			25,781
Commercial real estate	-			-		530,692			-
Land/land development	-			-		-			-
Commercial	-			11,006		-			11,482
Consumer	82,239			94,883		188,445			190,231
Gross charge-offs	138,469			124,833		775,367			227,494
Recoveries:
One-to-four family	219			11,369		1,594			22,078
Commercial real estate	685,196			-		685,580			-
Land/land development	-			-		-			-
Commercial	325,190			-		350,190			13,129
Consumer	29,966			31,454		106,474			145,135
Gross recoveries	1,040,541			42,823		1,143,838			180,342
Net charge-offs	(902,072)			82,010		(368,471)			47,152
Additions charged to operations	(650,000)			-		(600,000)			-
Balance at end of period	$		2,912,563	$	3,149,801	$		2,912,533	$			3,149,801

(1) Net loan charge-offs/(recoveries) to average loans	(1.69%)			0.17%		(0.24%)			0.03%

Nonperforming assets (000's)	At September 30,			At June 30,		At March 31,			At December 31,
Loans:	2017			2017		2017			2016
Non-accrual	$		2,260	$	2,904	$		2,406	$			3,595
Past 90 days or more and still accruing	-			-		-			-
Troubled debt restructured	425			356		1,084			1,232
Total nonperforming loans	2,685			3,260		3,490			4,827
Real estate owned	-			9		9			69
Other repossessed assets	-			-		-			-
Total nonperforming assets	$		2,685	$	3,269	$		3,499	$			4,893

Nonperforming assets to total assets	0.88%				1.08%	1.15%			1.63%
Nonperforming loans to total loans	1.25%				1.57%	1.70%			2.41%
Allowance for loan losses to nonperforming loans	108.47%				81.60%	90.20%			65.13%
Allowance for loan losses to net loans receivable	1.36%				1.30%	1.55%			1.60%


	At September 30,
	2017			2016

Stockholders' equity as a % of total assets	11.96%			11.71%
Book value per share	$		29.97	$	28.73
Common shares outstanding- EOP	1,214,879			1,207,379

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