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

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Jan 31, 2020, 14:25 ET

HUNTINGTON, Ind., Jan. 31, 2020 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced earnings increased $519,000 or 12.4% to $4.7 million ($3.91 per diluted common share) for the full year 2019 when compared to full year 2018 earnings of $4.2 million ($3.49 per diluted common share). 2019 annual earnings represent the highest earnings level ever recorded for the Company. The full year 2019 earnings equates to a return on average assets of 1.33% and a return on average equity of 11.76% compared to an ROA of 1.28% and an ROE of 11.48% for the full year 2018.

Total assets increased $19.7 million or 5.9% to $353.9 million at December 31, 2019 compared to December 31, 2018 assets of $334.2 million. Total net loans increased $13.4 million or 5.6% to $253.5 million at December 31, 2019 from $240.1 million at December 31, 2018. Total deposits increased $18.9 million or 8.1% to $252.3 million at December 31, 2019 from $233.4 million at December 31, 2018. Total borrowings decreased $2.5 million or 4.2% to $57.2 million at December 31, 2019 compared to December 31, 2018 borrowings of $59.7 million.

The Company also announced quarterly earnings for the three months ended December 31, 2019 increased by $139,000 or 13.9% to $1.1 million ($0.96 per diluted common share) when compared to earnings for the three months ended December 31, 2018 of $1.0 million ($0.84 per diluted common shares). The current quarter's earnings equates to an ROA of 1.28% and an ROE of 11.05% compared to an ROA of 1.21% and an ROE of 10.90% for the prior year quarter ended December 31, 2018.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "I'm very pleased with our record financial performance in 2019. Embracing our role as a community bank has led to our success. In addition, for the 25^th year in row, we were able to increase our dividend to our shareholders as well as provide them with a special dividend for the 5^th consecutive year."

The Company paid out cash dividends of $2.1 million to shareholders during the year ended December 31, 2019 including roughly $905,000 from a Special Cash Dividend ($0.75 per common share) that was paid to shareholders in December 2019 for the 5^th year in a row of Special Cash Dividends. The book value of NIDB stock was $34.25 per common share as of December 31, 2019. The Company's stock closed at $40.10 per common share on December 31, 2019, an increase of $3.10 or 8.4% compared to the closing stock price of $37.00 per common share on December 31, 2018.

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, 2019				December 31, 2018
Interest-earning cash and cash equivalents					$	8,352,340			$		3,605,610
Noninterest earning cash and cash equivalents					2,863,471				2,685,698
Total cash and cash equivalents					11,215,811				6,291,308
Securities available for sale					65,001,858				63,898,265
Interest-earning deposits in financial institutions					3,681,000				3,436,000
Securities held to maturity					1,044,197				1,233,843
Loans held for sale					134,000				453,100
Loans receivable, net of allowance for loan loss Dec. 31, 2019 $3,191,605 and Dec. 31, 2018 $2,856,319					253,461,826				240,075,827
Accrued interest receivable					1,242,788				1,314,404
Premises and equipment					4,971,271				3,988,192
Investments in limited liability partnerships					2,128,334				2,428,334
Cash surrender value of life insurance					8,839,193				8,613,693
Other assets					2,203,348				2,477,748
*Total Assets*					$	353,923,626			$		334,210,714
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits					30,011,306				26,751,611
Interest bearing deposits					222,271,145				206,618,957
Borrowed Funds					57,237,450				59,763,974
Accrued interest payable and other liabilities					3,086,817				3,735,912
*Total Liabilities*					312,606,718				296,870,454

Retained earnings – substantially restricted					41,316,908				37,340,260
*Total Liabilities and Shareholders' Equity*					$	353,923,626			$			334,210,714

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2019		2018		2019			2018
Total interest income	$	3,888,547	$	3,762,659	$		15,995,780	$		14,142,981
Total interest expense		1,020,391		922,895			4,335,592			3,206,100
Net interest income	$	2,868,156	$	2,839,764	$		11,660,188	$		10,936,881
Provision for loan losses		75,000		175,000			425,000			175,000
Net interest income after provision for loan losses	$	2,793,156	$	2,664,764	$		11,235,188	$		10,761,881
Service charges on deposit accounts		202,459		167,744			742,279			658,805
Interchange fees		149,117		136,009			592,966			531,280
Net gain (loss) on sale of securities		-		(157,931)			91,526			(162,879)
Net gain on sale of loans		272,788		499,684			920,900			1,045,103
Net gain (loss) on sale of repossessed assets		(12,047)		(3,302)			(4,439)			(8,153)
Brokerage fees		51,854		38,956			216,823			217,003
Increase in cash surrender value of life insurance		56,375		57,876			225,500			231,500
Other income		99,285		177,850			634,706			575,012
Total noninterest income	$	819,831	$	916,886	$		3,420,261	$		3,087,671
Salaries and employee benefits		1,261,897		1,233,054			5,139,029			4,798,322
Occupancy		271,594		257,137			1,124,854			1,062,090
Data processing		243,055		302,361			962,075			1,172,825
Deposit insurance premiums		-		24,000			24,000			86,000
Professional fees		81,073		193,281			368,327			426,787
Advertising and marketing		67,630		80,673			256,690			247,615
Correspondent bank charges		36,050		34,124			145,909			131,225
Other expense		312,622		279,916			1,156,107			1,081,554
Total noninterest expenses	$	2,273,921	$	2,404,546	$		9,176,991	$		9,006,417
Income before income tax expense	$	1,339,066	$	1,177,104	$		5,478,458	$		4,843,135
Income tax expense		193,761		171,151			792,964			676,278
Net Income	$	1,145,305	$	1,005,953	$		4,685,494	$		4,166,857

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended December 31,					Twelve Months Ended December 31,
	2019			2018		2019		2018
Basic Earnings per common share	0.96			0.84		3.91		3.49
Dilutive Earnings per share	0.96			0.84		3.91		3.49
Net interest margin	3.43%			3.64%		3.52%		3.60%
Return on average assets	1.28%			1.21%		1.33%		1.28%
Return on average equity	11.05%			10.90%		11.76%		11.48%
Efficiency Ratio	61.66%			64.01%		60.85%		64.22%
Average shares outstanding - primary	1,198,827			1,195,527		1,197,629		1,194,403
Average shares outstanding - diluted	1,198,827			1,195,527		1,198,154		1,195,678

Allowance for loan losses:
Balance at beginning of period	$		3,094,673	$	2,727,118	$	2,856,319	$	2,746,523
Charge-offs:
One-to-four family	-			-		41,961		41,072
Commercial real estate	-			-		73,705		-
Land/land development	-			-		-		-
Commercial	52,725			-		77,725		2,250
Consumer	55,138			86,100		208,170		270,893
Gross charge-offs	107,863			86,100		401,561		314,215
Recoveries:
One-to-four family	43,406			1,339		46,066		2,503
Commercial real estate	-			-		64,040		66,754
Land/land development	-			-		-		-
Commercial	63,000			-		86,649		7,428
Consumer	23,389			38,862		115,092		172,325
Gross recoveries	129,795			40,301		311,847		249,011
Net charge-offs / recoveries	(21,932)			45,799		89,714		65,205
Additions charged to operations	75,000			175,000		425,000		175,000
Balance at end of period	$		3,191,605	$	2,856,319	$	3,191,605	$	2,856,319

Net loan charge-offs (recoveries) to average loans (1)	(0.03%)			0.08%		0.04%		0.03%

Nonperforming assets (000's)	At December 31,			At September 30,		At June 30,		At December 31,
Loans:	2019			2019		2019		2018
Non-accrual	$		6,173	$	4,952	$	4,970	$	2,674
Past 90 days or more and still accruing	-			-		-		-
Troubled debt restructured	468			470		530		170
Total nonperforming loans	6,641			5,422		5,500		2,844
Real estate owned	262			361		-		33
Other repossessed assets	-			-		-		-
Total nonperforming assets	$		6,903	$	5,783	$	5,500	$	2,877

Nonperforming assets to total assets	1.95%				1.64%	1.53%		0.86%
Nonperforming loans to total loans	2.59%				2.13%	2.14%		1.17%
Allowance for loan losses to nonperforming loans	48.07%				57.08%	54.27%		100.42%
Allowance for loan losses to total receivable	1.26%				1.23%	1.18%		1.19%
	At December 31,
	2019			2018
Stockholders' equity as a % of total assets	11.67%			11.17%
Book value per share	$	34.25		$	30.95
Common shares outstanding- EOP	1,206,327			1,206,327

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