Northeast Indiana Bancorp, Inc. Announces Quarterly Earnings

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Apr 19, 2017, 12:14 ET

HUNTINGTON, Ind., April 19, 2017 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced net income of $830,000 ($0.69 per diluted common share) for the first quarter ended March 31, 2017 compared to net income of $1.1 million ($0.89 per diluted common share) for the first quarter ended March 31, 2016. The decrease stems primarily from a reduction in loan sale gains from our mortgage banking and SBA programs between quarterly periods. The current three months earnings equate to an annualized return on average assets (ROA) of 1.10% and a return on average equity (ROE) of 9.74% compared to an ROA of 1.49% and an ROE of 12.98% for the prior year quarter ended March 31, 2016.

Total loans increased $5.9 million or 3.0% to $202.7 million at March 31, 2017 compared to total loans of $196.8 million at December 31, 2016. Total deposits increased $5.6 million or 2.6% to $224.0 million at March 31, 2017 compared to $218.4 million at December 31, 2016. Total nonperforming assets decreased $1.4 million or 28.6% to $3.5 million at March 31, 2017 compared to $4.9 million at December 31, 2016.

Shareholders' equity increased to $34.4 million at March 31, 2017 compared to $33.7 million at December 31, 2016. The book value of NIDB stock was $28.34 per common share as of March 31, 2017. The number of outstanding common shares was 1,214,879. The last reported trade of the stock on April 18, 2017 was $33.75 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*	March 31, 2017		December 31, 2016
Interest-earning cash and cash equivalents	$	7,423,731	$	4,591,440
Noninterest earning cash and cash equivalents	2,455,448		2,493,983
Total cash and cash equivalents	9,879,179		7,085,423
Interest-earning time deposits	6,370,000		9,082,982
Securities available for sale	63,724,838		66,171,764
Securities held to maturity	2,194,973		2,582,029
Loans held for sale	286,190		109,000
Loans receivable, net of allowance for loan loss March 31, 2017 $3,148,496 and December 31, 2016 $3,144,092	202,694,656		196,781,434
Accrued interest receivable	1,099,333		1,161,779
Premises and equipment	4,033,411		4,060,931
Investments in limited liability partnerships	2,858,333		2,908,333
Cash surrender value of life insurance	8,216,068		8,160,693
Other assets	2,244,753		2,855,115
*Total Assets*	$	303,601,734	$	300,959,483
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits	27,924,548		24,218,658
Interest bearing deposits	196,050,429		194,192,875
Borrowed Funds	40,249,405		42,650,461
Accrued interest payable and other liabilities	4,943,273		6,259,318
*Total Liabilities*	269,167,655		267,321,312

Retained earnings – substantially restricted	34,434,079		33,638,171
*Total Liabilities and Shareholders' Equity*	$	303,601,734	$	300,959,483

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	March 31,
	2017		2016
Total interest income	$	2,934,994	$	2,847,977
Total interest expense	461,241		408,116
Net interest income	$	2,473,753	$	2,439,861
Provision for loan losses	-		-
Net interest income after provision for loan losses	$	2,473,753	$	2,439,861
Service charges on deposit accounts	139,164		140,561
Interchange fees	108,546		102,947
Net loss on sale of securities	(7,716)		(1,457)
Net gain on sale of loans	205,237		476,732
Net loss on sale of repossessed assets	(7,798)		(12,759)
Brokerage fees	65,703		79,556
Increase in cash surrender value of life insurance	55,375		54,313
Other income	144,366		152,655
Total noninterest income	$	702,877	$	992,548
Salaries and employee benefits	1,113,486		971,668
Occupancy	252,266		265,192
Data processing	271,586		191,842
Deposit insurance premiums	30,000		45,000
Professional fees	55,423		63,535
Advertising and marketing fees	47,393		48,507
Correspondent bank charges	29,232		32,840
Other expense	264,617		230,739
Total noninterest expenses	$	2,064,003	$	1,849,323
Income before income tax expenses	$	1,112,627	$	1,583,086
Income tax expense	283,008		510,428
Net Income	$	829,619	$	1,072,658

	Three Months Ended March 31,
	2017		2016
Basic Earnings per common share	0.69		0.89
Dilutive Earnings per share	0.69		0.89
Net interest margin	3.53%		3.61%
Return on average assets	1.10%		1.49%
Return on average equity	9.74%		12.98%
Efficiency ratio	64.97%		53.88%
Average shares outstanding- primary	1,200,106		1,198,890
Average shares outstanding- diluted	1,200,206		1,199,235
Allowance for loan losses:
Balance at beginning of period	$	3,144,092	$	3,196,953
Charge-offs:
One-to-four family	-		-
Commercial real estate	-		-
Land/land development	-		-
Commercial	-		-
Consumer	41,472		26,631
Gross charge-offs	41,472		26,631
Recoveries:
One-to-four family	938		6,020
Commercial real estate	-		-
Land/land development	-		-
Commercial	-		13,129
Consumer	44,939		87,709
Gross recoveries	45,877		106,858
Net charge-offs/(recoveries)	(4,404)		(80,227)
Additions charged to operations	-		-
Balance at end of period	$	3,148,496	$	3,277,180

Net loan charge-offs to average loans (1)	(0.01%)		(0.17%)

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

Nonperforming assets to total assets	1.15%		1.63%
Nonperforming loans to total loans	1.70%		2.41%
Allowance for loan losses to nonperforming loans	90.20%		65.13%
Allowance for loan losses to net loans receivable	1.76%		1.60%


	At March 31,
	2017		2016

Stockholders' equity as a % of total assets	11.34%		11.49%
Book value per share	$	28.34	$	27.78
Common shares outstanding- EOP	1,214,879		1,199,879

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