Northeast Indiana Bancorp, Inc. Announces Quarterly Earnings

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Apr 13, 2020, 11:20 ET

HUNTINGTON, Ind., April 13, 2020 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced net income of $1.03 million ($0.86 per diluted common share) for the first quarter ended March 31, 2020. This earnings level was relatively unchanged when compared to earnings from the quarter ended March 31, 2019 of $1.06 million ($0.88 per diluted common share). The current three months earnings equate to an annualized return on average assets (ROA) of 1.16% and a return on average equity (ROE) of 9.86% compared to an ROA of 1.24% and an ROE of 11.20% for the prior year quarter ended March 31, 2019.

Total loans decreased $1.8 million to $251.6 million at March 31, 2020 compared to total loans of $253.4 million at December 31, 2019. Total deposits increased $7.6 million or 3.0% to $259.9 million at March 31, 2020 compared to $252.3 million at December 31, 2019.

Shareholders' equity increased $1.6 million to $42.9 million at March 31, 2020 compared to $41.3 million at December 31, 2019. The book value of NIDB stock increased $1.18 to $35.43 per common share as of March 31, 2020 compared to $34.25 at December 31, 2019. The number of outstanding common shares was 1,210,327. The last reported trade of the stock on April 10, 2020 was $28.45 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, 2020		December 31, 2019
Interest-earning cash and cash equivalents														$	12,017,428	$	8,352,340
Noninterest earning cash and cash equivalents														2,768,423		2,863,471
Total cash and cash equivalents														14,785,851		11,215,811
Interest-earning time deposits														3,681,000		3,681,000
Securities available for sale														66,048,666		65,001,858
Securities held to maturity														932,773		1,044,197
Loans held for sale														1,992,100		134,000
Loans receivable, net of allowance for loan loss March 31, 2020 $3,443,587 and December 31, 2019 $3,191,605														251,647,689		253,461,826
Accrued interest receivable														1,214,895		1,242,788
Premises and equipment														4,985,154		4,971,271
Investments in limited liability partnerships														2,053,334		2,128,334
Cash surrender value of life insurance														8,896,543		8,839,193
Other assets														1,612,689		2,203,348
*Total Assets*														$	357,850,694	$	353,923,626
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits														35,216,339		30,011,306
Interest bearing deposits														224,666,874		222,271,145
Borrowed Funds														52,152,674		57,237,450
Accrued interest payable and other liabilities														2,926,918		3,086,817
*Total Liabilities*														314,962,805		312,606,718

Retained earnings – substantially restricted														42,887,889		41,316,908
*Total Liabilities and Shareholders' Equity*														$	357,850,694	$		353,923,626

CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended
		March 31,
		2020							2019
Total interest income		$		3,772,563					$		3,914,864
Total interest expense				944,368							1,052,696
Net interest income		$		2,828,195					$		2,862,168
Provision for loan losses				220,000							75,000
Net interest income after provision for loan losses		$		2,608,195					$		2,787,168
Service charges on deposit accounts				186,039							172,056
Interchange fees				146,906							131,184
Net gain on sale of loans				277,171							144,919
Net gain/(loss) on sale of repossessed assets				(18,186)							7,608
Brokerage fees				56,760							63,347
Increase in cash surrender value of life insurance				57,350							57,000
Other income				144,388							171,015
Total noninterest income		$		850,428					$		747,129
Salaries and employee benefits				1,296,191							1,286,328
Occupancy				245,504							284,661
Data processing				270,101							247,788
Deposit insurance premiums				20,000							-
Professional fees				64,436							110,077
Advertising and marketing fees				55,603							83,385
Correspondent bank charges				32,735							37,317
Other expense				269,671							271,239
Total noninterest expenses		$		2,254,241					$		2,320,795
Income before income tax expenses		$		1,204,382					$		1,213,502
Income tax expense				171,083							155,649
Net Income		$		1,033,299					$		1,057,853

	Three Months Ended March 31,
	2020							2019
Basic Earnings per common share	0.86							0.88
Dilutive Earnings per share	0.86							0.88
Net interest margin	3.40%							3.58%
Return on average assets	1.16%							1.24%
Return on average equity	9.86%							11.20%
Efficiency ratio	61.28%							64.30%
Average shares outstanding- primary	1,201,805							1,195,904
Average shares outstanding- diluted	1,201,805							1,197,462
Allowance for loan losses:
Balance at beginning of period	$				3,191,605			$				2,856,319
Charge-offs:
One-to-four family	17,952							-
Commercial real estate	-							73,705
Land/land development	-							-
Commercial	-							25,000
Consumer	33,443							64,494
Gross charge-offs	51,395							163,199
Recoveries:
One-to-four family	903							920
Commercial real estate	-							-
Land/land development	-							-
Commercial	54,000							-
Consumer	28,473							54,179
Gross recoveries	83,376							55,099
Net charge-offs/(recoveries)	(31,981)							108,100
Additions charged to operations	220,000							75,000
Balance at end of period	$				3,443,586			$				2,823,219

Net loan charge-offs / (recoveries)to average loans (1)	(0.05%)							0.17%

Nonperforming assets (000's)	At March 31,							At December 31,
Loans:	2020							2019
Non-accrual			$			7,119				$			6,173
Past 90 days or more and still accruing	-							-
Troubled debt restructured	465							468
Total nonperforming loans	7,584							6,641
Real estate owned	59							262
Other repossessed assets	-							-
Total nonperforming assets			$			7,643				$			6,903

Nonperforming assets to total assets	2.14%						1.95%
Nonperforming loans to total loans	2.97%						2.59%
Allowance for loan losses to nonperforming loans	45.41%						48.07%
Allowance for loan losses to net loans receivable	1.37%						1.26%


	At March 31,
	2020							2019

Stockholders' equity as a % of total assets	11.81%							11.26%
Book value per share			$ 35.43							$ 32.09
Common shares outstanding- EOP	1,210,379							1,206,327

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