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

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Nov 02, 2021, 10:51 ET

HUNTINGTON, Ind., Nov. 2, 2021 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income increased $292,000 or 17.7% to $1.94 million ($1.62 per diluted common share) for the Company's third quarter ended September 30, 2021 compared to net income of $1.65 million ($1.37 per diluted common share) for the third quarter ended September 30, 2020. The current three months earnings represent a new record for the Company and equates to an annualized return on average assets (ROA) of 1.88% and a return on average equity (ROE) of 15.81%. This compares to an annualized ROA of 1.65% and an annualized ROE of 14.33% for the three months ended September 30, 2020.

Net income for the nine months ended September 30, 2021 increased $1.64 million or 39.7% to $5.76 million ($4.80 per diluted common share), compared to net income of $4.124 million ($3.42 per diluted common share) for the nine months ended September 30, 2020. The current nine months earnings represent a new record for the Company and equates to an annualized ROA of 1.90% and an annualized ROE of 15.77%. This compares to an annualized ROA of 1.43% and an annualized ROE of 12.54% for the nine months ended September 30, 2020.

Net Loans Receivable have increased $14.25 million or 5.39% to $278.47 million at September 30, 2021 compared to $264.22 million at December 31, 2020. Total Deposits have increased $29.79 million or 10.03% to $326.75 million at September 30, 2021 compared to $296.96 million at December 31, 2020. Shareholder's equity increased $3.92 million or 8.59% to $49.58 million at September 30, 2021 compared to $45.66 million at December 31, 2020. The book value of NIDB's stock was $40.75 per common share as of September 30, 2021. The number of outstanding common shares was 1,202,985 as of the same date. The last reported trade of the stock on October 27, 2021 was $44.50 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,						December 31,
						2021				2020
Interest-earning cash and cash equivalents						$		14,716,427				$		12,397,471
Noninterest earning cash and cash equivalents						3,709,841						2,311,822
Total cash and cash equivalents						18,426,268						14,709,293
Interest- earning time deposits						2,210,000						3,681,000
Securities available for sale						82,515,533						78,418,462
Securities held to maturity						11,926,106						9,442,271
Loans held for sale						1,408,000						137,000
Loans receivable, net of allowance for loan loss September 30, 2021 $4,013,967 and December 31, 2020 $3,851,897						278,472,147						264,220,486
Accrued interest receivable						1,561,054						1,516,929
Premises and equipment						6,806,146						5,282,884
Investments in limited liability partnerships						1,603,334						1,828,334
Cash surrender value of life insurance						10,265,336						10,071,443
Other assets						2,196,937						1,969,048
*Total Assets*						$		417,390,861				$		391,277,150
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits						59,659,995						46,257,438
Interest bearing deposits						267,089,646						250,700,577
Borrowed Funds						37,711,346						45,805,419
Accrued interest payable and other liabilities						3,347,304						2,852,005
*Total Liabilities*						367,808,291						345,615,439

Retained earnings – substantially restricted						49,582,570						45,661,711
*Total Liabilities and Shareholders' Equity*						$		417,390,861				$			391,277,150

CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2021		2020		2021					2020
Total interest income		$	4,381,819	$	3,734,822	$			12,248,544		$		11,333,967
Total interest expense			418,799		694,908				1,383,263				2,421,893
Net interest income		$	3,963,020	$	3,039,914	$			10,865,281		$		8,912,074
Provision for loan losses			-		120,000				120,000				460,000
Net interest income after provision for loan losses		$	3,963,020	$	2,919,914	$			10,745,281		$		8,452,074
Service charges on deposit accounts			181,654		148,651				488,770				469,371
Interchange Fees			164,120		122,189				496,208				419,398
Net gain (loss) on sale of securities			-		-				-				-
Net gain on sale of loans			332,411		799,857				1,565,034				1,841,861
Net gain (loss) on sale of repossessed assets			-		-				-				(16,535)
Brokerage fees			59,658		45,849				191,873				142,132
Increase in cash surrender value of life insurance			64,631		56,506				193,894				169,519
Other income			162,629		144,977				440,173				185,528
Total noninterest income		$	965,103	$	1,318,029	$			3,375,952		$		3,211,274
Salaries and employee benefits			1,408,744		1,242,653				3,729,398				3,723,935
Occupancy			262,437		256,947				788,309				769,947
Data processing			350,898		223,506				1,019,939				825,688
Deposit insurance premiums			25,500		32,500				75,500				78,000
Professional fees			96,921		82,144				258,682				203,174
Advertising / marketing fees			64,072		65,120				159,559				148,869
Correspondent bank charges			27,977		31,299				80,241				90,402
Other expense			308,973		281,095				911,599				847,170
Total noninterest expenses		$	2,545,522	$	2,215,264	$			7,023,227		$		6,687,185
Income before income tax expense		$	2,382,601	$	2,022,679	$			7,098,006		$		4,976,163
Income tax expense			443,200		375,565				1,337,969				852,482
Net Income		$	1,939,401	$	1,647,114	$			5,760,037		$		4,123,681

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Basic Earnings per common share	1.62			1.37			4.81			3.43
Dilutive Earnings per share	1.62			1.37			4.80			3.43
Net interest margin	4.06%			3.24%			3.79%			3.28%
Return on average assets	1.88%			1.65%			1.90%			1.43%
Return on average equity	15.81%			14.33%			15.77%			12.54%
Efficiency ratio	51.83%			50.83%			49.31%			55.16%
Average shares outstanding- primary	1,197,861			1,201,419			1,198,323			1,203,856
Average shares outstanding- diluted	1,198,028			1,201,586			1,200,079			1,205,523
Allowance for loan losses:
Balance at beginning of period	$		3,987,013	$	3,664,820		$		3,851,897	$			3,191,605
Charge-offs:
One-to-four family	-			-			-			-
Commercial real estate	-			-			15,194			17,951
Land/land development	-			-			-			-
Commercial	-			-			-			-
Consumer	13,103			39,016			75,191			84,143
Gross charge-offs	13,103			39,016			90,385			102,094
Recoveries:
One-to-four family	7,503			1,417			10,380			2,831
Commercial real estate	9,086			-			19,281			-
Land/land development	-			-			-			-
Commercial	250			-			990			105,919
Consumer	23,218			34,357			101,804			123,318
Gross recoveries	40,057			35,774			132,455			232,067
Net charge-offs	(26,954)			3,242			(42,070)			(129,973)
Additions charged to operations	-			120,000			120,000			460,000
Balance at end of period	$		4,013,967	$	3,781,578		$		4,013,967	$			3,781,578

(1) Net loan charge-offs/(recoveries) to average loans	(.04%)			0.00%			(0.03%)			(0.06%)

Nonperforming assets (000's)	At September 30,			At June 30,			At March 31,			At December 31,
Loans:	2021			2021			2021			2020
Non-accrual	$		2,467	$	1,800		$		4,538	$			5,034
Past 90 days or more and still accruing	-			-			-			-
Troubled debt restructured	361			362			364			374
Total nonperforming loans	2,828			2,162			4,902			5,408
Real estate owned	5			255			5			5
Other repossessed assets	-			-			-			-
Total nonperforming assets	$		2,833	$	2,417		$		4,907	$			5,413

Nonperforming assets to total assets	0.68%			0.59%			1.21%			1.38%
Nonperforming loans to total loans	1.00%			0.77%			1.79%			2.02%
Allowance for loan losses to nonperforming loans	141.94%			184.42%			81.07%			71.23%
Allowance for loan losses to net loans receivable	1.44%			1.44%			1.48%			1.46%


	At September 30,
	2021			2020

Stockholders' equity as a % of total assets	11.86%			11.60%
Book value per share	$		40.75	$	37.66
Common shares outstanding- EOP	1,202,985			1,210,327

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