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

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Feb 05, 2016, 12:46 ET

HUNTINGTON, Ind., Feb. 5, 2016 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced record annual earnings for the full year 2015 of $3.8 million ($3.19 per diluted common share). This is an increase of $701,000 or 22.4% compared to net income of $3.1 million ($2.59 per diluted common share) for the full year 2014. The full year 2015 earnings equates to a return on average assets of 1.37% and a return on average equity of 11.91% compared to an ROA of 1.15% and an ROE of 10.71% for the full year 2014.

The Company also announced quarterly earnings for the three months ended December 31, 2015 of $1.0 million ($0.84 per diluted common share). This is an increase of $133,000 or 15.2% compared to net income of $875,000 ($0.73 per diluted common share) for the three months ended December 31, 2014. The current quarter's earnings equates to an ROA of 1.42% and an ROE of 12.41% compared to an ROA of 1.26% and an ROE of 11.60% for the prior year quarter ended December 31, 2014.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "Due to the focus and dedication of our staff and the relationships we establish with each and every customer, the bank continues to financially perform at a very high level. Our performance allowed us to reward our shareholders, not only with the 21^st consecutive annual dividend increase, but a first ever special cash dividend in 2015. I'm excited about what lies ahead as we continue to serve our customers and our communities."

Total assets increased $8.0 million to $284.1 million at December 31, 2015 compared to December 31, 2014 assets of $276.1 million. Total deposits decreased $3.6 million to $209.5 million at December 31, 2015 from $213.2 million at December 31, 2014.

The Company paid out cash dividends of $1.6 million to shareholders during the year ended December 31, 2015. The book value of NIDB stock was $26.95 per common share as of December 31, 2015 an increase of $1.60 or 6.3% compared to book value of $25.35 per common share as of December 31, 2014. The Company's stock closed at $30.00 per common share on December 31, 2015, an increase of $4.00 or 15.4% compared to the closing stock price of $26.00 per common share on December 31, 2014.

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*					December 31, 2015				December 31, 2014
Interest-earning cash and cash equivalents					$	10,491,898			$		5,969,837
Noninterest earning cash and cash equivalents					1,960,543				5,015,780
Total cash and cash equivalents					12,452,441				10,985,617
Securities available for sale					60,458,506				72,717,037
Interest-earning deposits in financial institutions					11,754,857				8,355,733
Securities held to maturity					2,685,585				1,129,168
Loans held for sale					-				125,000
Loans receivable, net of allowance for loan loss Dec. 31, 2015 $3,196,953 and Dec. 31, 2014 $3,402,355					182,238,993				168,728,783
Accrued interest receivable					976,484				933,935
Premises and equipment					2,880,607				2,998,086
Investments in limited liability partnerships					235,858				34,291
Cash surrender value of life insurance					7,939,443				7,722,193
Other assets					2,506,762				2,419,981
*Total Assets*					$	284,129,536			$		276,149,824
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits					23,253,557				20,666,024
Interest bearing deposits					186,281,637				192,496,447
Borrowed Funds					39,346,188				29,911,662
Accrued interest payable and other liabilities					2,910,474				2,663,897
*Total Liabilities*					251,791,856				245,738,030

Retained earnings – substantially restricted					32,337,680				30,411,794
*Total Liabilities and Shareholders' Equity*					$	284,129,536			$			276,149,824

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2015		2014		2015			2014
Total interest income	$	2,781,464	$	2,738,125	$		10,876,039	$		10,625,351
Total interest expense		361,226		316,691			1,318,847			1,239,660
Net interest income	$	2,420,238	$	2,421,434	$		9,557,192	$		9,385,691
Provision for loan losses		-		150,000			-			625,000
Net interest income after provision for loan losses	$	2,420,238	$	2,271,434	$		9,557,192	$		8,760,691
Service charges on deposit accounts		156,769		133,527			587,480			516,431
Net gain (loss) on sale of securities		293,600		(78)			407,491			(25,782)
Net gain on sale of loans		179,779		348,274			827,938			1,194,371
Net gain (loss) on sale of repossessed assets		(31,124)		(2,702)			(20,563)			2,017
Net loss on sale of fixed assets		-		-			-			(3,260)
Brokerage fees		68,767		141,317			413,130			513,456
Other income		252,056		228,194			1,248,800			940,145
Total noninterest income	$	919,847	$	848,532	$		3,464,276	$		3,137,378
Salaries and employee benefits		1,101,073		991,966			4,203,923			3,923,855
Occupancy		263,337		265,992			1,073,129			1,122,401
Data processing		206,465		208,825			890,586			831,241
Deposit insurance premiums		35,000		51,000			156,000			203,000
Professional fees		115,481		128,360			328,129			378,236
Advertising and marketing		72,630		59,168			208,600			229,208
Correspondent bank charges		37,294		30,967			140,056			123,549
Other expense		236,341		222,689			792,443			779,274
Total noninterest expenses	$	2,067,621	$	1,958,967	$		7,792,866	$		7,590,764
Income before income tax expense	$	1,272,464	$	1,160,999	$		5,228,602	$		4,307,305
Income tax expense		264,604		285,980			1,399,324			1,179,521
Net Income	$	1,007,860	$	875,019	$		3,829,278	$		3,127,784



NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

	Three Months Ended December 31,					Twelve Months Ended December 31,
	2015			2014		2015		2014
Basic Earnings per common share	0.84			0.73		3.20		2.59
Dilutive Earnings per share	0.84			0.73		3.19		2.59
Net interest margin	3.63%			3.72%		3.65%		3.66%
Return on average assets	1.42%			1.26%		1.37%		1.15%
Return on average equity	12.41%			11.60%		11.91%		10.71%
Efficiency Ratio	61.90%			59.91%		59.85%		60.61%
Average shares outstanding - primary	1,198,679			1,196,523		1,198,530		1,207,052
Average shares outstanding - diluted	1,198,747			1,196,534		1,198,922		1,207,207

Allowance for loan losses:
Balance at beginning of period	$		3,246,251	$	3,676,641	$	3,402,355	$	3,355,534
Charge-offs:
One-to-four family	23,605			18,756		52,407		45,664
Commercial real estate	-			330,000		146,134		330,000
Land/land development	-			-		-		-
Commercial	-			100,000		-		175,000
Consumer	114,077			64,487		220,225		211,350
Gross charge-offs	137,682			513,243		418,766		762,014
Recoveries:
One-to-four family	944			657		4,560		3,535
Commercial real estate	-			-		-		-
Land/land development	-			-		-		-
Commercial	50,000			50,000		57,741		50,000
Consumer	37,640			38,300		151,163		130,300
Gross recoveries	88,584			88,957		213,364		183,835
Net charge-offs	49,098			424,286		205,402		578,179
Additions charged to operations	-			150,000		-		625,000
Balance at end of period	$		3,196,953	$	3,402,355	$	3,196,953	$	3,402,355

Net loan charge-offs (recoveries) to average loans (1)	0.03%			0.25%		0.12%		0.35%

Nonperforming assets (000's)	At December 31,			At September 30,		At June 30,		At December 31,
Loans:	2015			2015		2015		2014
Non-accrual	$		3,793	$	3,825	$	3,669	$	4,396
Past 90 days or more and still accruing	-			-		-		-
Troubled debt restructured	592			603		711		1,862
Total nonperforming loans	4,385			4,428		4,380		6,258
Real estate owned	117			134		59		131
Other repossessed assets	-			-		-		3
Total nonperforming assets	$		4,502	$	4,562	$	4,439	$	6,392

Nonperforming assets to total assets	1.58%			1.66%		1.60%		2.31%
Nonperforming loans to total loans	2.36%			2.60%		2.58%		3.64%
Allowance for loan losses to nonperforming loans	72.91%			73.29%		74.62%		54.36%
Allowance for loan losses to total receivable	1.75%			1.95%		1.96%		2.02%
	At December 31,
	2015				2014
Stockholders' equity as a % of total assets	11.38%			11.01%
Book value per share	$	26.95		$	25.35
Common shares outstanding- EOP	1,199,879			1,199,879

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