Northeast Indiana Bancorp, Inc. Announces Record Quarterly And Record Year To Date Earnings

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Oct 15, 2020, 11:43 ET

HUNTINGTON, Ind., Oct. 15, 2020 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income increased $285,000 or 21.0% to $1.65 million ($1.37 per diluted common share) for the Company's third quarter ended September 30, 2020 compared to net income of $1.36 million ($1.14 per diluted common share) for the third quarter ended September 30, 2019. The current three months earnings represent a new record for the Company and equates to an annualized return on average assets (ROA) of 1.65% and a return on average equity (ROE) of 14.33%. This compares to an annualized ROA of 1.53% and an annualized ROE of 13.31% for the three months ended September 30, 2019.

Net income for the nine months ended September 30, 2020 increased $583,000 or 16.5% to $4.12 million ($3.43 per diluted common share), compared to net income of $3.54 million ($2.96 per diluted common share) for the nine months ended September 30, 2019. The current nine months earnings represent a new record for the Company and equates to an annualized ROA of 1.43% and an annualized ROE of 12.54%. This compares to an annualized ROA of 1.34% and an annualized ROE of 12.01% for the nine months ended September 30, 2019.

First Federal Savings Bank has been a source of strength to small business clients and non-profits in Northeast Indiana during 2020. The Bank participated in the SBA's Paycheck Protection Program ("PPP") and helped over 400 clients receive roughly $40.0 million in PPP funding. The business banking team is now helping clients maneuver PPP Forgiveness applications. We anticipate that process being completed during the fourth quarter of 2020 and into the first quarter of 2021.

First Federal Savings Bank had continued strong 1-4 Family mortgage production during the quarter ended September 30, 2020. The Bank originated mortgage loans in the amount of $24.6 million for the current quarter after record mortgage production of $33.3 million for the quarter ended June 30, 2020. These efforts help our retail clients through lower monthly payments and lower interest over the life of their mortgage loans. We anticipate mortgage production to remain at these elevated levels at least over the next three months if not longer.

First Federal Savings Bank has also worked with our borrowers on loan forbearance requests under the CARES Act. We initially executed forbearance requests on roughly $36.0 million (13% of loan portfolio) in loan balances for an initial three-month period during the quarter ended June 30, 2020. That figure declined significantly to roughly $8.0 million (3% of loan portfolio) that executed a second three-month forbearance request during the current quarter ended September 30, 2020. Management anticipates a high majority of these clients moving back to amortizing status during the quarter ended December 31, 2020.

Net Loans Receivable have increased $18.86 million or 7.44% to $272.32 million at September 30, 2020 compared to $253.46 million at December 31, 2019. Total Deposits have increased $40.53 million or 16.10% to $292.81 million at September 30, 2020 compared to $252.28 million at December 31, 2019. Shareholder's equity increased $4.26 million or 10.31% to $45.58 million at September 30, 2020 compared to $41.32 million at December 31, 2019. The book value of NIDB's stock was $37.66 per common share as of September 30, 2020. The number of outstanding common shares was 1,210,327 as of the same date. The last reported trade of the stock on October 13, 2020 was $33.50 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.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*						September 30, 2020						December 31, 2019
Interest-earning cash and cash equivalents						$		12,569,363				$		8,352,340
Noninterest earning cash and cash equivalents						6,670,671						2,863,471
Total cash and cash equivalents						19,240,034						11,215,811
Interest- earning time deposits						3,681,000						3,681,000
Securities available for sale						70,635,203						65,001,858
Securities held to maturity						5,806,824						1,044,197
Loans held for sale						2,100,400						134,000
Loans receivable, net of allowance for loan loss September 30, 2020 $3,781,578 and December 31, 2019 $3,191,605						272,323,751						253,461,826
Accrued interest receivable						1,607,891						1,242,788
Premises and equipment						4,937,414						4,971,271
Investments in limited liability partnerships						1,903,334						2,128,334
Cash surrender value of life insurance						9,008,712						8,839,193
Other assets						1,675,232						2,203,348
*Total Assets*						$		392,919,795				$		353,923,626
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits						48,678,996						30,011,306
Interest bearing deposits						244,130,662						222,271,145
Borrowed Funds						51,229,782						57,237,450
Accrued interest payable and other liabilities						3,303,209						3,086,817
*Total Liabilities*						347,342,649						312,606,718

Retained earnings – substantially restricted						45,577,146						41,316,908
*Total Liabilities and Shareholders' Equity*						$		392,919,795				$			353,923,626

CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2020		2019		2020					2019
Total interest income		$	3,734,822	$	4,097,681	$			11,333,967		$		12,107,235
Total interest expense			694,908		1,104,242				2,421,893				3,315,199
Net interest income		$	3,039,914	$	2,993,439	$			8,912,074		$		8,792,036
Provision for loan losses			120,000		200,000				460,000				350,000
Net interest income after provision for loan losses		$	2,919,914	$	2,793,439	$			8,452,074		$		8,442,036
Service charges on deposit accounts			148,651		190,919				469,371				539,822
Interchange Fees			122,189		160,982				419,398				443,850
Net gain (loss) on sale of securities			-		(6,510)				-				91,526
Net gain on sale of loans			799,857		385,842				1,841,861				648,112
Net gain (loss) on sale of repossessed assets			-		-				(16,535)				7,608
Brokerage fees			45,849		41,914				142,132				164,969
Increase in cash surrender value of life insurance			56,506		56,625				169,519				169,125
Other income			144,977		252,859				185,528				535,420
Total noninterest income		$	1,318,029	$	1,082,631	$			3,211,274		$		2,600,432
Salaries and employee benefits			1,242,653		1,279,760				3,723,935				3,877,132
Occupancy			256,947		291,719				769,947				853,257
Data processing			223,506		245,498				825,688				719,020
Deposit insurance premiums			32,500		-				78,000				24,000
Professional fees			82,144		53,695				203,174				287,255
Advertising / marketing fees			65,120		40,920				148,869				189,060
Correspondent bank charges			31,299		35,306				90,402				109,859
Other expense			281,095		300,486				847,170				843,493
Total noninterest expenses		$	2,215,264	$	2,247,384	$			6,687,185		$		6,903,076
Income before income tax expense		$	2,022,679	$	1,628,686	$			4,976,163		$		4,139,392
Income tax expense			375,565		267,005				852,482				599,203
Net Income		$	1,647,114	$	1,361,681	$			4,123,681		$		3,540,189

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Basic Earnings per common share	1.37			1.14			3.43			2.96
Dilutive Earnings per share	1.37			1.14			3.43			2.96
Net interest margin	3.24%			3.57%			3.28%			3.55%
Return on average assets	1.65%			1.53%			1.43%			1.34%
Return on average equity	14.33%			13.31%			12.54%			12.01%
Efficiency ratio	50.83%			55.14%			55.16%			60.59%
Average shares outstanding- primary	1,201,419			1,198,419			1,203,856			1,197,226
Average shares outstanding- diluted	1,201,586			1,198,586			1,205,523			1,197,926
Allowance for loan losses:
Balance at beginning of period	$		3,664,820	$	2,984,907		$		3,191,605	$			2,856,319
Charge-offs:
One-to-four family	-			41,961			-			41,961
Commercial real estate	-			-			17,951			73,705
Land/land development	-			-			-			-
Commercial	-			-			-			25,000
Consumer	39,016			67,622			84,143			153,031
Gross charge-offs	39,016			109,583			102,094			293,698
Recoveries:
One-to-four family	1,417			936			2,831			2,660
Commercial real estate	-			-			-			64,040
Land/land development	-			-			-			-
Commercial	-			1,581			105,919			23,649
Consumer	34,357			16,832			123,318			91,703
Gross recoveries	35,774			19,349			232,067			182,052
Net charge-offs	3,242			90,234			(129,973)			111,646
Additions charged to operations	120,000			200,000			460,000			350,000
Balance at end of period	$		3,781,578	$	3,094,673		$		3,781,578	$			3,094,673

(1) Net loan charge-offs/(recoveries) to average loans	0.00%			0.14%			(0.06%)			0.06%

Nonperforming assets (000's)	At September 30,			At June 30,			At March 31,			At December 31,
Loans:	2020			2020			2020			2019
Non-accrual	$		5,501	$	6,511		$		7,119	$			6,173
Past 90 days or more and still accruing	-			-			-			-
Troubled debt restructured	381			448			465			468
Total nonperforming loans	5,882			6,959			7,584			6,641
Real estate owned	5			5			59			262
Other repossessed assets	-			-			-			-
Total nonperforming assets	$		5,887	$	6,964		$		7,643	$			6,903

Nonperforming assets to total assets	1.50%			1.42%			2.14%			1.95%
Nonperforming loans to total loans	2.13%			2.48%			2.97%			2.59%
Allowance for loan losses to nonperforming loans	64.30%			52.66%			45.41%			48.07%
Allowance for loan losses to net loans receivable	1.39%			1.32%			1.37%			1.26%


	At September 30,
	2020			2019

Stockholders' equity as a % of total assets	11.60%			11.76%
Book value per share	$		37.66	$	34.28
Common shares outstanding- EOP	1,210,327			1,206,327

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