Northeast Indiana Bancorp, Inc. Announces Record Annual Earnings And Quarterly Earnings

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Feb 06, 2015, 08:58 ET

HUNTINGTON, Ind., Feb. 6, 2015 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced record annual earnings for the full year 2014 of $3.1 million ($2.59 per diluted common share). This is an increase of $651,000 or 26.3% compared to net income of $2.5 million ($2.01 per diluted common share) for the full year 2013. This record annual earnings total of $3.1 million in 2014 breaks our former record annual earnings total of $2.9 million from 2012 by $271,000 or 9.5%. The full year 2014 earnings equates to a return on average assets of 1.15% and a return on average equity of 10.71% compared to an ROA of 0.92% and an ROE of 8.85% for the full year 2013.

The Company also announced quarterly earnings for the three months ended December 31, 2014 of $875,000 ($0.73 per diluted common share). This is an increase of $223,000 or 34.2% compared to net income of $652,000 ($0.53 per diluted common share) for the three months ended December 31, 2013. The current quarter's earnings equates to an ROA of 1.26% and an ROE of 11.60% compared to an ROA of 0.96% and an ROE of 9.31% for the prior year quarter ended December 31, 2013.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "I'm very pleased with the financial performance of First Federal Savings Bank in 2014. Our record earnings, double digit loan growth, significant improvement in asset quality and strong net interest margin expansion can be attributed to the staff embracing our mission as a community bank. Our continued high performance allowed us to reward our shareholders with increased dividends for the 20^th year in a row. I'm excited about our future and the opportunities in from of us."

Total assets increased $7.5 million to $276.1 million at December 31, 2014 compared to December 31, 2013 assets of $268.6 million. Total deposits increased $4.3 million to $213.2 million at December 31, 2014 from $208.9 million at December 31, 2013.

The Company paid out cash dividends of $952,000 to shareholders during the year ended December 31, 2014. The book value of NIDB stock was $25.35 per common share as of December 31, 2014 an increase of $2.70 or 11.9% compared to book value of $22.65 per common share as of December 31, 2013. The Company also repurchased 29,567 shares for treasury in 2014 under a previously announced stock repurchase program. The number of outstanding common shares was 1,199,879. The last reported trade of the stock on February 5, 2015 was $26.20 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.com.

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*					December 31, 2014		December 31, 2013
Interest-earning cash and cash equivalents					$	5,969,837	$	5,476,740
Noninterest earning cash and cash equivalents					5,015,780		2,481,418
Total cash and cash equivalents					10,985,617		7,958,158
Securities available for sale					72,717,037		86,295,635
Interest-earning deposits in financial institutions					8,355,733		7,135,000
Securities held to maturity					1,129,168		1,466,003
Loans held for sale					125,000		142,500
Loans receivable, net of allowance for loan loss Dec. 31, 2014 $3,402,355 and Dec. 31, 2013 $3,355,534					168,728,783		150,790,666
Accrued interest receivable					933,935		932,105
Premises and equipment					2,998,086		2,929,520
Investments in limited liability partnerships					34,291		-
Cash surrender value of life insurance					7,722,193		7,497,893
Other assets					2,419,981		3,410,137
*Total Assets*					$	276,149,824	$	268,557,617
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits					20,666,024		18,196,448
Interest bearing deposits					192,496,447		190,686,051
Borrowed Funds					29,911,662		28,755,460
Accrued interest payable and other liabilities					2,663,897		3,109,814
*Total Liabilities*					245,738,030		240,747,773

Retained earnings – substantially restricted					30,411,794		27,809,844
*Total Liabilities and Shareholders' Equity*					$	276,149,824	$	268,557,617

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2014		2013		2014		2013
Total interest income	$	2,738,125	$	2,545,756	$	10,625,351	$	9,820,554
Total interest expense		316,691		321,798		1,239,660		1,354,112
Net interest income	$	2,421,434	$	2,223,958	$	9,385,691	$	8,466,442
Provision for loan losses		150,000		450,000		625,000		1,250,000
Net interest income after provision for loan losses	$	2,271,434	$	1,773,958	$	8,760,691	$	7,216,442
Service charges on deposit accounts		133,527		126,922		516,431		509,473
Net gain (loss) on sale of securities		(78)		208,585		(25,782)		244,945
Net gain on sale of loans		348,274		213,808		1,194,371		952,841
Net gain (loss) on sale of repossessed assets		(2,702)		(97,388)		2,017		(82,337)
Net loss on sale of fixed assets		-		(7,001)		(3,260)		(7,286)
Brokerage fees		141,317		101,419		513,456		423,125
Other income		228,194		230,053		940,145		911,640
Total noninterest income	$	848,532	$	776,398	$	3,137,378	$	2,952,401
Salaries and employee benefits		991,966		883,234		3,923,855		3,534,070
Occupancy		265,992		265,905		1,122,401		1,071,202
Data processing		208,825		192,183		831,241		787,886
Deposit insurance premiums		51,000		60,000		203,000		240,000
Professional fees		128,360		140,726		378,236		340,694
Advertising and marketing		59,168		38,292		229,208		169,129
Correspondent bank charges		30,967		29,362		123,549		119,788
Other expense		222,689		172,463		779,274		691,199
Total noninterest expenses	$	1,958,967	$	1,782,165	$	7,590,764	$	6,953,968
Income before income tax expense	$	1,160,999	$	768,191	$	4,307,305	$	3,214,875
Income tax expense		285,980		116,155		1,179,521		737,967
Net Income	$	875,019	$	652,036	$	3,127,784	$	2,476,908

NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2014		2013		2014		2013
Basic Earnings per common share	0.73		0.53		2.59		2.01
Dilutive Earnings per share	0.73		0.53		2.59		2.01
Net interest margin	3.72%		3.48%		3.66%		3.36%
Return on average assets	1.26%		0.96%		1.15%		0.92%
Return on average equity	11.60%		9.31%		10.71%		8.85%
Efficiency Ratio	59.91%		59.40%		60.61%		60.90%
Average shares outstanding - primary	1,196,523		1,225,561		1,207,052		1,232,212
Average shares outstanding - diluted	1,196,534		1,225,561		1,207,207		1,232,407

Allowance for loan losses:
Balance at beginning of period	$	3,676,641	$	3,847,260	$	3,355,534	$	3,846,021
Charge-offs:
One-to-four family	18,756		132,835		45,664		208,021
Commercial real estate	330,000		902,253		330,000		910,736
Land/land development	-		-		-		145,000
Commercial	100,000		34,867		175,000		672,258
Consumer	64,487		68,633		211,350		209,271
Gross charge-offs	513,243		1,135,588		762,014		2,145,286
Recoveries:
One-to-four family	657		1,285		3,535		6,271
Commercial real estate	-		-		-		72,801
Land/land development	-		2,500		-		32,500
Commercial	50,000		168,123		50,000		193,971
Consumer	38,300		24,954		130,300		99,256
Gross recoveries	88,957		196,862		183,835		404,799
Net charge-offs	424,286		941,726		578,179		1,740,487
Additions charged to operations	150,000		450,000		625,000		1,250,000
Balance at end of period	$	3,402,355	$	3,355,534	$	3,402,355	$	3,355,534

Net loan charge-offs (recoveries) to average loans (1)	0.25%		0.61%		0.35%		1.14%

Nonperforming assets (000's)	At December 31,		At September 30,		At June 30,		At December 31,
Loans:	2014		2014		2014		2013
Non-accrual	$	4,396	$	5,210	$	5,109	$	5,443
Past 90 days or more and still accruing	-		-		-		-
Troubled debt restructured	1,862		1,814		1,407		1,398
Total nonperforming loans	6,258		7,024		6,516		6,841
Real estate owned	131		101		106		508
Other repossessed assets	3		4		-		20
Total nonperforming assets	$	6,392	$	7,129	$	6,622	$	7,369

Nonperforming assets to total assets	2.31%		2.63%		2.44%		2.74%
Nonperforming loans to total loans	3.64%		4.15%		3.99%		4.44%
Allowance for loan losses to nonperforming loans	54.36%		52.35%		54.60%		49.06%
Allowance for loan losses to total receivable	2.02%		2.22%		2.23%		2.23%
	At December 31,
	2014		2013
Stockholders' equity as a % of total assets	11.01%		10.36%
Book value per share	$	25.35	$	22.65
Common shares outstanding- EOP	1,199,879		1,227,946

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