NORTHEAST INDIANA BANCORP, INC. ANNOUNCES RECORD ANNUAL EARNINGS
HUNTINGTON, Ind., Jan. 28, 2022 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank (FFSB), today announced earnings increased $1.7 million, or 30.3% to $7.3 million ($6.08 per diluted common share) for the full year 2021 when compared to full year 2020 earnings of $5.6 million ($4.64 per diluted common share). 2021 annual earnings represent the highest earnings level ever recorded for the Company. The full year 2021 earnings equal a return on average assets of 1.77% and a return on average equity of 15.31% compared to an ROA of 1.44% and an ROE of 12.63% for the full year 2020.
Total assets increased $26.4 million, or 6.7% to $417.7 million at December 31, 2021 compared to December 31, 2020 assets of $391.3 million. Total net loans increased $10.0 million, or 3.8% to $274.3 million at December 31, 2021 from $264.2 million at December 31, 2020. Total deposits increased $45.0 million, or 15.2% to $341.9 million at December 31, 2021 from $297.0 million at December 31, 2020. Total borrowings decreased $22.8 million, or 49.8% to $23.0 million at December 31, 2021 compared to December 31, 2020 borrowings of $45.8 million.
The Company paid out cash dividends of $2.9 million to shareholders during the year ended December 31, 2021 including roughly $1.5 million from a Special Cash Dividend ($1.25 per common share) that was paid to shareholders in December 2021 for the 7th year in a row of Special Cash Dividends. The book value of NIDB stock increased to $40.49 per common share as of December 31, 2021 from $37.73 per common share as of December 31, 2020. The Company's stock closed at $47.00 per common share on December 31, 2021.
First Federal Savings Bank President and CEO Michael S. Zahn stated, "2021 continued to be challenging as the pandemic lingers. I am proud to work side-by-side with our FFSB team who continues to step up to the challenges to serve our customers and our communities." Zahn continues, "FFSB was able to achieve record earnings while helping commercial customers secure much needed relief, allowing homeowners to obtain low interest rate mortgages and providing financial services to help our communities."
First Federal Savings Bank was a source of strength to small business clients and non-profits in Northeast Indiana during 2021 and 2020. The Bank participated in the SBA's Paycheck Protection Program ("PPP") and helped over 800 clients receive roughly $68.7 million in PPP funding.
The Company also announced quarterly earnings for the three months ended December 31, 2021 increased by $61,000, or 4.1% to $1.54 million ($1.28 per diluted common share) when compared to earnings for the three months ended December 31, 2020 of $1.48 million ($1.23 per diluted common shares). The current quarter's earnings equal a ROA of 1.43% and an ROE of 12.57% compared to an ROA of 1.49% and an ROE of 12.90% for the prior year quarter ended December 31, 2020.
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.
NORTHEAST INDIANA BANCORP | ||||||||||||||||
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | ||||||||||||||||
ASSETS | December 31, 2021 | December 31, 2020 | ||||||||||||||
Interest-earning cash and cash equivalents | $ | 12,185,155 | $ | 12,397,471 | ||||||||||||
Noninterest earning cash and cash equivalents | 3,595,989 | 2,311,822 | ||||||||||||||
Total cash and cash equivalents | 15,781,144 | 14,709,93 | ||||||||||||||
Interest-earning time deposits | 2,210,000 | 3,681,000 | ||||||||||||||
Securities available for sale | 89,070,934 | 78,418,462 | ||||||||||||||
Securities held to maturity | 11,916,667 | 9,442,271 | ||||||||||||||
Loans held for sale | 538,635 | 137,000 | ||||||||||||||
Loans receivable, net of allowance for loan loss Dec. 31, 2021 $3,998,392 and | 274,267,094 | 264,220,486 | ||||||||||||||
Accrued interest receivable | 1,489,036 | 1,516,929 | ||||||||||||||
Premises and equipment | 6,937,418 | 5,282,884 | ||||||||||||||
Investments in limited liability partnerships | 1,528,334 | 1,828,334 | ||||||||||||||
Cash surrender value of life insurance | 11,331,941 | 10,071,443 | ||||||||||||||
Other assets | 2,585,660 | 1,969,048 | ||||||||||||||
Total Assets | $ | 417,656,863 | $ | 391,277,150 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
Non-interest bearing deposits | 56,435,410 | 46,257,438 | ||||||||||||||
Interest bearing deposits | 285,513,161 | 250,700,577 | ||||||||||||||
Borrowed Funds | 23,001,166 | 45,805,419 | ||||||||||||||
Accrued interest payable and other liabilities | 3,903,575 | 2,852,005 | ||||||||||||||
Total Liabilities | 368,853,312 | 345,615,439 | ||||||||||||||
Retained earnings – substantially restricted | 48,803,551 | 45,661,711 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 417,656,863 | $ | 391,277,150 | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Total interest income | $ | 4,104,650 | $ | 4,115,656 | $ | 16,353,194 | $ | 15,449,662 | ||||||||
Total interest expense | 724,329 | 619,374 | 2,107,592 | 3,041,269 | ||||||||||||
Net interest income | $ | 3,380,321 | $ | 3,496,282 | $ | 14,245,602 | $ | 12,408,353 | ||||||||
Provision for loan losses | - | 120,000 | 120,000 | 580,000 | ||||||||||||
Net interest income after provision for loan losses | $ | 3,380,321 | $ | 3,376,282 | $ | 14,125,602 | $ | 11,828,353 | ||||||||
Service charges on deposit accounts | 184,310 | 190,312 | 673,080 | 659,683 | ||||||||||||
Interchange fees | 168,400 | 150,561 | 664,608 | 569,959 | ||||||||||||
Net gain (loss) on sale of securities | - | - | - | - | ||||||||||||
Net gain on sale of loans | 407,181 | 874,069 | 1,972,217 | 2,715,931 | ||||||||||||
Net gain (loss) on sale of repossessed assets | (5,000) | - | (7,954) | (16,535) | ||||||||||||
Brokerage fees | 59,556 | 47,501 | 251,429 | 189,633 | ||||||||||||
Increase in cash surrender value of life insurance | 66,604 | 62,731 | 260,498 | 232,250 | ||||||||||||
Other income | 392,040 | 90,884 | 832,213 | 276,408 | ||||||||||||
Total noninterest income | $ | 1,273,091 | $ | 1,416,058 | $ | 4,646,091 | $ | 4,627,329 | ||||||||
Salaries and employee benefits | 1,683,090 | 1,867,398 | 5,412,488 | 5,591,328 | ||||||||||||
Occupancy | 285,047 | 263,635 | 1,073,356 | 1,033,583 | ||||||||||||
Data processing | 322,827 | 312,385 | 1,342,766 | 1,138,073 | ||||||||||||
Deposit insurance premiums | 25,500 | 21,000 | 101,000 | 99,000 | ||||||||||||
Professional fees | 95,581 | 138,055 | 354,263 | 341,229 | ||||||||||||
Advertising and marketing | 64,776 | 63,444 | 224,336 | 212,313 | ||||||||||||
Correspondent bank charges | 22,128 | 18,942 | 102,369 | 109,344 | ||||||||||||
Other expense | 311,341 | 324,403 | 1,219,987 | 1,171,571 | ||||||||||||
Total noninterest expenses | $ | 2,810,290 | $ | 3,009,262 | $ | 9,830,565 | $ | 9,696,441 | ||||||||
Income before income tax expense | $ | 1,843,122 | $ | 1,783,078 | $ | 8,941,128 | $ | 6,759,241 | ||||||||
Income tax expense | 306,031 | 307,137 | 1,644,000 | 1,159,619 | ||||||||||||
Net Income | $ | 1,537,091 | $ | 1,475,941 | $ | 7,297,128 | $ | 5,599,622 | ||||||||
NORTHEAST INDIANA BANCORP | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Basic Earnings per common share | 1.28 | 1.23 | 6.09 | 4.65 | |||||||||||
Dilutive Earnings per share | 1.28 | 1.23 | 6.08 | 4.64 | |||||||||||
Net interest margin | 3.33% | 3.76% | 3.66% | 3.41% | |||||||||||
Return on average assets | 1.43% | 1.49% | 1.77% | 1.44% | |||||||||||
Return on average equity | 12.57% | 12.90% | 15.31% | 12.63% | |||||||||||
Efficiency Ratio | 60.39% | 61.26% | 52.04% | 56.92% | |||||||||||
Average shares outstanding - primary | 1,198,285 | 1,201,827 | 1,198,314 | 1,204,352 | |||||||||||
Average shares outstanding - diluted | 1,198,410 | 1,201,827 | 1,199,630 | 1,205,602 | |||||||||||
Allowance for loan losses: | |||||||||||||||
Balance at beginning of period | $ | 4,013,967 | $ | 3,781,578 | $ | 3,851,897 | $ | 3,191,605 | |||||||
Charge-offs: | |||||||||||||||
One-to-four family | - | - | 15,194 | 17,952 | |||||||||||
Commercial real estate | - | - | - | 13,865 | |||||||||||
Land/land development | - | - | - | - | |||||||||||
Commercial | - | 13,865 | - | - | |||||||||||
Consumer | 38,699 | 53,434 | 113,891 | 137,577 | |||||||||||
Gross charge-offs | 38,699 | 67,299 | 129,085 | 169,394 | |||||||||||
Recoveries: | |||||||||||||||
One-to-four family | 935 | 1,411 | 11,315 | 4,242 | |||||||||||
Commercial real estate | 111 | - | 19,393 | - | |||||||||||
Land/land development | - | - | - | - | |||||||||||
Commercial | 2,550 | 691 | 3,540 | 106,609 | |||||||||||
Consumer | 19,528 | 15,516 | 121,332 | 138,835 | |||||||||||
Gross recoveries | 23,124 | 17,618 | 155,580 | 249,686 | |||||||||||
Net charge-offs / recoveries | 15,575 | 49,681 | (26,495) | (80,292) | |||||||||||
Additions charged to operations | - | 120,000 | 120,000 | 580,000 | |||||||||||
Balance at end of period | $ | 3,998,392 | $ | 3,851,897 | $ | 3,998,392 | $ | 3,851,897 | |||||||
Net loan charge-offs (recoveries) to average loans (1) | 0.02% | 0.07% | (0.01%) | (0.03%) | |||||||||||
Nonperforming assets (000's) | At December 31, | At September 30, | At June 30, | At December 31, | |||||||||||
Loans: | 2021 | 2021 | 2021 | 2020 | |||||||||||
Non-accrual | $ | 2,859 | $ | 2,467 | $ | 1,800 | $ | 5,034 | |||||||
Past 90 days or more and still accruing | - | - | - | - | |||||||||||
Troubled debt restructured | 365 | 361 | 362 | 374 | |||||||||||
Total nonperforming loans | 3,224 | 2,828 | 2,162 | 5,408 | |||||||||||
Real estate owned | - | 5 | 255 | 5 | |||||||||||
Other repossessed assets | - | - | - | - | |||||||||||
Total nonperforming assets | $ | 3,224 | $ | 2,833 | $ | 2,417 | $ | 5,413 | |||||||
Nonperforming assets to total assets | 0.77% | 0.68% | 0.59% | 1.38% | |||||||||||
Nonperforming loans to total loans | 1.16% | 1.00% | 0.77% | 2.02% | |||||||||||
Allowance for loan losses to nonperforming loans | 124.01% | 141.94% | 184.42% | 71.23% | |||||||||||
Allowance for loan losses to total receivable | 1.44% | 1.44% | 1.44% | 1.44% | |||||||||||
At December 31, | |||||||||||||||
2021 | 2020 | ||||||||||||||
Stockholders' equity as a % of total assets | 11.90% | 11.67% | |||||||||||||
Book value per share | $ | 40.49 | $ | 37.73 | |||||||||||
Common shares outstanding- EOP | 1,205,435 | 1,210,327 | |||||||||||||
(1) Ratios for the three-month periods are annualized. | |||||||||||||||
SOURCE Northeast Indiana Bancorp, Inc.
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