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

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Feb 08, 2013, 10:48 ET

HUNTINGTON, Ind., Feb. 8, 2013 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced record annual earnings for the full year 2012 of $2.9 million ($2.31 per diluted common share). This is an increase of $820,000 or 40.3% compared to net income of $2.0 million ($1.65 per diluted common share) for the full year 2011. The full year 2012 earnings equates to a return on average assets of 1.06% and a return on average equity of 10.38% compared to an ROA of 0.79% and an ROE of 8.13% for the full year 2011.

The Company also announced record quarterly earnings for the three months ended December 31, 2012 of $913,000 ($0.74 per diluted common share) compared to net income of $743,000 ($0.60 per diluted common share) for the three months ended December 31, 2011. The current quarter's earnings equates to an ROA of 1.32% and an ROE of 13.07% compared to an ROA of 1.13% and an ROE of 11.61% for the prior year quarter ended December 31, 2011.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "Through the hard work of our staff, the trust from our customers, and our dedication to the communities we serve, First Federal Savings Bank was able to achieve record financial results. In a year in which we celebrated 100 years in business, we were able to implement several transformational changes which coincide with our mission as a community bank. I'm proud of our successes and excited about our future."

Total assets increased $9.7 million to $271.2 million at December 31, 2012 compared to December 31, 2011 assets of $261.5 million. Total deposits increased $21.8 million or 11.5% to $211.6 million at December 31, 2012 from $189.8 million at December 31, 2011. Shareholder's equity increased $1.8 million or 6.9% to $27.9 million at December 31, 2012 compared to $26.1 million at December 31, 2011.

The Company paid out cash dividends of $919,000 to shareholders during the year ended December 31, 2012. The book value of NIDB stock was $22.53 per common share as of December 31, 2012 as compared to a book value of $21.09 per common share as of December 31, 2011. The number of outstanding common shares was 1,239,946. The last reported trade of the stock on February 6, 2013 was $17.00 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, 2012		December 31, 2011
Interest-earning cash and cash equivalents	$	16,687,647	$	11,598,753
Noninterest earning cash and cash equivalents	3,997,988		2,495,578
Total cash and cash equivalents	20,685,635		14,094,331
Securities available for sale	71,353,159		55,117,994
Securities held to maturity	7,236,984		482,807
Loans held for sale	1,549,475		42,500
Loans receivable, net of allowance for loan loss Dec. 31, 2012 $3,846,021 and Dec. 31, 2011 $4,061,508	154,746,404		176,893,452
Accrued interest receivable	929,061		980,464
Premises and equipment	2,989,226		2,691,780
Investments in limited liability partnerships	74,625		153,813
Cash surrender value of life insurance	7,261,343		7,016,493
Other assets	4,378,644		4,050,116
*Total Assets*	$	271,204,556	$	261,523,750
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits	20,123,659		14,847,250
Interest bearing deposits	191,462,228		174,988,658
Borrowed Funds	28,902,484		42,955,096
Accrued interest payable and other liabilities	2,777,031		2,587,575
*Total Liabilities*	243,265,402		235,378,579

Retained earnings – substantially restricted	27,939,154		26,145,171
*Total Liabilities and Shareholders' Equity*	$	271,204,556	$		261,523,750

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2012		2011		2012		2011
Total interest income	$	2,693,418	$	3,001,900	$	11,191,182	$	12,135,400
Total interest expense		427,843		691,858		2,126,010		3,132,982
Net interest income	$	2,265,575	$	2,310,042	$	9,065,172	$	9,002,418
Provision for loan losses		450,000		250,000		1,450,000		2,175,000
Net interest income after provision for loan losses	$	1,815,575	$	2,060,042	$	7,615,172	$	6,827,418
Service charges on deposit accounts		139,367		156,292		533,067		606,339
Net gain on sale of securities		335,118		-		335,118		272,542
Net gain on sale of loans		320,055		264,354		1,012,000		706,302
Net loss on sale of repossessed assets		(79,105)		(40,611)		(164,582)		(246,789)
Net gain (loss) on sale of fixed assets		(1,834)		-		(1,500)		92
Brokerage fees		96,301		98,778		413,539		401,968
Other income		187,102		221,111		840,568		877,802
Total noninterest income	$	997,004	$	699,924	$	2,968,210	$	2,618,256
Salaries and employee benefits		824,361		761,710		3,470,312		3,396,034
Occupancy		274,555		245,294		983,853		951,889
Data processing		212,772		215,351		832,700		794,244
Deposit insurance premiums		60,000		50,500		240,000		244,500
Professional fees		83,223		107,291		361,105		396,388
Correspondent bank charges		29,262		28,958		117,804		129,948
Valuation allowances – repossessed assets		-		110,468		-		177,968
Other expense		226,162		212,499		841,075		790,098
Total noninterest expenses	$	1,710,335	$	1,732,071	$	6,846,849	$	6,881,069
Income before income tax expense	$	1,102,244	$	1,027,895	$	3,736,533	$	2,564,605
Income tax expense		189,057		285,081		880,067		528,405
Net Income	$	913,187	$	742,814	$	2,856,466	$	2,036,200

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2012				2011		2012		2011
Basic Earnings per common share	0.74				0.60		2.31		1.65
Dilutive Earnings per share	0.74				0.60		2.31		1.65
Net interest margin	3.52%				3.76%		3.61%		3.73%
Return on average assets	1.32%				1.13%		1.06%		0.79%
Return on average equity	13.07%				11.61%		10.38%		8.13%
Efficiency Ratio	52.42%				57.54%		56.90%		59.21%
Average shares outstanding - primary	1,234,380				1,232,525		1,234,253		1,231,921
Average shares outstanding - diluted	1,234,417				1,232,525		1,234,408		1,232,571

Allowance for loan losses:
Balance at beginning of period	$		3,865,907		$	3,859,859	$	4,061,508	$	3,227,844
Charge-offs:
One-to-four family	1,632				-		132,686		454,569
Commercial real estate	6,421				-		188,347		304,478
Land/land development	-				-		653,451		284,961
Commercial	424,970				19,248		601,315		143,540
Consumer	52,922				56,465		192,028		217,410
Gross charge-offs	485,945				75,713		1,767,828		1,404,959
Recoveries:
One-to-four family	2,714				975		11,549		3,400
Commercial real estate	-				5,975		-		5,975
Land/land development	-				-		-		-
Commercial	-				-		1,233		-
Consumer	13,345				20,412		89,559		54,248
Gross recoveries	16,059				27,362		102,341		63,623
Net charge-offs	469,886				48,351		1,665,487		1,341,336
Additions charged to operations	450,000				250,000		1,450,000		2,175,000
Balance at end of period	$		3,846,021		$	4,061,508	$	3,846,021	$	4,061,508

Net loan charge-offs (recoveries) to average loans (1)	0.28%				0.03%		0.96%		0.73%

Nonperforming assets (000's)	At December 31,				At September 30,		At June 30,		At December 31,
Loans:	2012				2012		2012		2011
Non-accrual	$		5,464		$	6,518	$	5,333	$	7,474
Past 90 days or more and still accruing	-				-		-		-
Troubled debt restructured	3,347				2,022		1,329		1,213
Total nonperforming loans	8,811				8,540		6,662		8,687
Real estate owned	1,719				2,419		2,554		1,242
Other repossessed assets	-				14		-		-
Total nonperforming assets	$		10,530		$	10,973	$	9,216	$	9,929

Nonperforming assets to total assets	3.88%			3.92%			3.39%		3.85%
Nonperforming loans to total loans	5.56%			5.08%			3.93%		4.80%
Allowance for loan losses to nonperforming loans	43.65%			45.27%			55.85%		46.76%
Allowance for loan losses to total receivable	2.49%			2.35%			2.24%		2.30%

	At December 31,
	2012				2011
Stockholders' equity as a % of total assets	10.30%				9.99%
Book value per share	$	22.53			$	21.09
Common shares outstanding- EOP	1,239,946				1,239,946

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