Northeast Indiana Bancorp, Inc. Announces Increased Year To Date Earnings

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Oct 22, 2018, 17:18 ET

HUNTINGTON, Ind., Oct. 22, 2018 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income for the nine months ended September 30, 2018 increased $257,000 or 8.8% to $3.16 million ($2.65 per diluted common share), compared to net income of $2.90 million ($2.41 per diluted common share) for the nine months ended September 30, 2017. The prior nine months earnings were increased by a negative Loan Loss Provision that increased earnings roughly $400,000, net of taxes. 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 1.31% and an ROE of 11.68% compared to an annualized ROA of 1.28% and an annualized ROE of 11.08% for the nine months ended September 30, 2017.

Net income decreased $283,000 to $1.03 million ($0.86 per diluted common share) for the Company's third quarter ended September 30, 2018 compared to net income of $1.31 million ($1.10 per diluted common share) for the third quarter ended September 30, 2017. Core earnings for the three months ended September 30, 2017 would have been roughly $915,000 without the negative Loan Loss Provision discussed above. The current three months earnings equates to an annualized return on average assets (ROA) of 1.27% and a return on average equity (ROE) of 11.22% compared to an annualized ROA of 1.74% and an ROE of 14.70% for the three months ended September 30, 2017.

Net Loans Receivable have increased $4.2 million or 1.9% to $229.3 million at September 30, 2018 compared to $225.1 million at December 31, 2017. Total Deposits have increased $20.9 million or 9.9% to $233.1 million at September 30, 2018 compared to $212.2 million at December 31, 2017. Shareholder's equity was $36.9 million at September 30, 2018 compared to $35.7 million at December 31, 2017. The book value of NIDB's stock was $30.59 per common share as of September 30, 2018. The number of outstanding common shares was 1,206,327 as of the same date. The last reported trade of the stock on October 19, 2018 was $38.00 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, 2018		December 31, 2017
Interest-earning cash and cash equivalents					$	7,589,922	$	3,954,186
Noninterest earning cash and cash equivalents					2,241,634		3,559,790
Total cash and cash equivalents					9,831,556		7,513,976
Interest- earning time deposits					2,942,000		1,715,000
Securities available for sale					64,236,480		58,583,396
Securities held to maturity					1,234,242		1,728,199
Loans held for sale					648,150		1,064,300
Loans receivable, net of allowance for loan loss September 30, 2018 $2,727,118 and December 31, 2017 $2,746,523					229,303,016		225,132,535
Accrued interest receivable					1,236,347		1,246,930
Premises and equipment					4,024,539		4,148,328
Investments in limited liability partnerships					2,498,334		2,708,333
Cash surrender value of life insurance					8,555,818		8,382,193
Other assets					2,250,643		1,952,615
*Total Assets*					$	326,761,125	$	314,175,805
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits					28,141,322		25,242,627
Interest bearing deposits					204,962,441		186,916,030
Borrowed Funds					52,991,468		61,199,066
Accrued interest payable and other liabilities					3,764,843		5,098,911
*Total Liabilities*					289,860,074		278,456,634

Retained earnings – substantially restricted					36,901,051		35,719,171
*Total Liabilities and Shareholders' Equity*					$	326,761,125	$	314,175,805

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Total interest income	$	3,560,452	$	3,096,331	$	10,380,320	$	9,018,361
Total interest expense		848,973		550,848		2,283,207		1,525,677
Net interest income	$	2,711,479	$	2,545,483	$	8,097,113	$	7,492,684
Provision for loan losses		-		(650,000)		-		(600,000)
Net interest income after provision for loan losses	$	2,711,479	$	3,195,483	$	8,097,113	$	8,092,684
Service charges on deposit accounts		170,016		162,963		491,061		450,672
Interchange Fees		133,327		115,142		395,271		344,715
Net gain (loss) on sale of securities		-		785		(4,947)		(6,931)
Net gain on sale of loans		138,351		126,705		545,420		471,475
Net gain (loss) on sale of repossessed assets		(5,000)		1,372		(4,851)		(6,426)
Brokerage fees		58,804		52,773		178,047		164,426
Increase in cash surrender value of life insurance		59,876		55,375		173,626		166,125
Other income		146,532		146,920		397,162		427,563
Total noninterest income	$	701,906	$	662,035	$	2,170,789	$	2,011,619
Salaries and employee benefits		1,186,985		1,085,731		3,565,269		3,279,354
Occupancy		279,721		240,762		804,954		742,231
Data processing		293,212		168,148		870,462		702,699
Deposit insurance premiums		14,000		28,000		62,000		78,000
Professional fees		91,612		116,448		233,507		281,289
Correspondent bank charges		33,868		30,950		97,101		93,655
Other expense		323,212		274,729		968,578		901,730
Total noninterest expenses	$	2,222,610	$	1,944,768	$	6,601,871	$	6,078,958
Income before income tax expense	$	1,190,775	$	1,912,750	$	3,666,031	$	4,025,345
Income tax expense		159,182		597,861		505,127		1,121,207
Net Income	$	1,031,593	$	1,314,889	$	3,160,904	$	2,904,138

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Basic Earnings per common share	0.86		1.10		2.65		2.41
Dilutive Earnings per share	0.86		1.10		2.65		2.41
Net interest margin	3.56%		3.61%		3.59%		3.54%
Return on average assets	1.27%		1.74%		1.31%		1.28%
Return on average equity	11.22%		14.70%		11.68%		11.08%
Efficiency ratio	65.11%		60.63%		64.30%		63.96%
Average shares outstanding- primary	1,195,119		1,200,371		1,194,024		1,205,084
Average shares outstanding- diluted	1,195,286		1,200,538		1,195,724		1,206,284
Allowance for loan losses:
Balance at beginning of period	$	2,808,485	$	2,660,491	$	2,746,523	$	3,149,092
Charge-offs:
One-to-four family	30,471		56,230		41,072		56,230
Commercial real estate	-		-		-		530,692
Land/land development	-		-		-		-
Commercial	-		-		2,250		-
Consumer	91,814		82,239		184,793		188,445
Gross charge-offs	122,285		138,469		228,115		775,367
Recoveries:
One-to-four family	474		219		1,164		1,594
Commercial real estate	-		685,196		66,755		685,580
Land/land development	-		-		-		-
Commercial	-		325,190		7,428		350,190
Consumer	40,444		29,966		133,363		106,474
Gross recoveries	40,918		1,040,541		208,710		1,143,838
Net charge-offs / (recoveries)	81,367		(902,072)		19,405		(368,471)
Additions charged to operations	-		(650,000)		-		(600,000)
Balance at end of period	$	2,727,818	$	2,912,563	$	2,727,118	$	2,912,533

(1) Net loan charge-offs/(recoveries) to average loans	0.14%		(1.69%)		0.01%		(0.24%)

Nonperforming assets (000's)	At September 30,		At June 30,		At March 31,		At December 31,
Loans:	2018		2018		2018		2017
Non-accrual	$	2,566	$	2,290	$	2,032	$	2,261
Past 90 days or more and still accruing	-		-		-		-
Troubled debt restructured	292		294		296		236
Total nonperforming loans	2,858		2,584		2,328		2,497
Real estate owned	114		60		48		-
Other repossessed assets	-		-		-		-
Total nonperforming assets	$	2,972	$	2,644	$	2,376	$	2,497

Nonperforming assets to total assets	0.91%		0.82%		0.75%		0.79%
Nonperforming loans to total loans	1.23%		1.12%		1.01%		1.10%
Allowance for loan losses to nonperforming loans	95.42%		108.73%		118.47%		110.01%
Allowance for loan losses to net loans receivable	1.19%		1.23%		1.21%		1.22%


	At September 30,
	2018		2017

Stockholders' equity as a % of total assets	11.29%		11.96%
Book value per share	$	30.59	$	29.97
Common shares outstanding- EOP	1,206,327		1,214,879

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