NORTHEAST INDIANA BANCORP, INC. ANNOUNCES RECORD ANNUAL EARNINGS

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Jan 28, 2022, 16:27 ET

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 7^th 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 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
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 Dec. 31, 2020 $3,851,897					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 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	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.