Northeast Indiana Bancorp, Inc. Announces Record Quarterly Earnings

News provided by

Apr 13, 2016, 02:41 ET

HUNTINGTON, Ind., April 13, 2016 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced that net income increased $181,000 or 20.3% to $1.1 million ($0.89 per diluted common share) for the first quarter ended March 31, 2016 compared to net income of $892,000 ($0.74 per diluted common share) for the first quarter ended March 31, 2015. The current three months earnings equate to an annualized return on average assets (ROA) of 1.49% and a return on average equity (ROE) of 12.98% compared to an ROA of 1.29% and an ROE of 11.59% for the prior year quarter ended March 31, 2015.

Total loans increased $4.0 million or 2.2% to $186.2 million at March 31, 2016 compared to total loans of $182.2 million at December 31, 2015. Total deposits increased $7.5 million or 3.6% to $217.1 million at March 31, 2016 compared to $209.5 million at December 31, 2015. Total assets also increased $6.0 million or 2.1% to $290.1 million at March 31, 2016 compared to $284.1 million at December 31, 2015.

Commenting on the financial results, First Federal Savings Bank CEO Michael S. Zahn stated, "I'm very pleased with our continued strong financial performance. Our first quarter earnings are a record and represent the third quarter in a row in which our earnings have exceeded $1 million. Steady growth, exceptional customer service by a dedicated staff, and strong overhead expense controls continue to fuel our performance."

Shareholders' equity increased to $33.3 million at March 31, 2016 compared to $32.3 million at December 31, 2015. The book value of NIDB stock was $27.78 per common share as of March 31, 2016. The number of outstanding common shares was 1,199,879. The last reported trade of the stock on April 12, 2016 was $30.00 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.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*					March 31, 2016		December 31, 2015
Interest-earning cash and cash equivalents					$	8,745,807	$	10,491,898
Noninterest earning cash and cash equivalents					2,313,481		1,960,543
Total cash and cash equivalents					11,059,288		12,452,441
Interest-earning time deposits					9,776,888		11,754,857
Securities available for sale					63,309,755		60,458,506
Securities held to maturity					2,506,101		2,685,585
Loans held for sale					113,500		-
Loans receivable, net of allowance for loan loss March 31, 2016 $3,277,180 and December 31, 2015 $3,196,953					186,204,955		182,238,993
Accrued interest receivable					931,389		976,484
Premises and equipment					4,214,844		2,880,607
Investments in limited liability partnerships					1,983,333		235,858
Cash surrender value of life insurance					7,993,756		7,939,443
Other assets					2,070,237		2,506,762
*Total Assets*					$	290,164,046	$	284,129,536
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits					24,032,227		23,253,557
Interest bearing deposits					193,038,610		186,281,637
Borrowed Funds					33,871,998		39,346,188
Accrued interest payable and other liabilities					5,891,562		2,910,474
*Total Liabilities*					256,834,397		251,791,856

Retained earnings â€" substantially restricted					33,329,649		32,337,680
*Total Liabilities and Shareholders' Equity*					$	290,164,046	$	284,129,536

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	March 31,
	2016		2015
Total interest income	$	2,847,977	$	2,676,119
Total interest expense		408,116		317,264
Net interest income	$	2,439,861	$	2,358,855
Provision for loan losses		-		-
Net interest income after provision for loan losses	$	2,439,861	$	2,358,855
Service charges on deposit accounts		140,561		117,463
Net gain (loss) on sale of securities		(1,457)		120,107
Net gain on sale of loans		476,732		153,434
Net (loss) on sale of repossessed assets		(12,759)		(2,415)
Brokerage fees		79,556		134,067
Increase in cash surrender value of life insurance		54,313		55,001
Other income		255,602		211,126
Total noninterest income	$	992,548	$	788,783
Salaries and employee benefits		971,668		1,043,306
Occupancy		265,192		289,970
Data processing		191,842		216,497
Deposit insurance premiums		45,000		36,000
Professional fees		63,535		82,644
Advertising and marketing fees		48,507		46,684
Correspondent bank charges		32,840		33,089
Other expense		230,739		200,488
Total noninterest expenses	$	1,849,323	$	1,948,678
Income before income tax expenses	$	1,583,086	$	1,198,960
Income tax expense		510,428		307,055
Net Income	$	1,072,658	$	891,905

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended March 31,
	2016		2015
Basic Earnings per common share	0.89		0.74
Dilutive Earnings per share	0.89		0.74
Net interest margin	3.61%		3.64%
Return on average assets	1.49%		1.29%
Return on average equity	12.98%		11.59%
Efficiency ratio	53.88%		61.91%
Average shares outstanding- primary	1,198,890		1,198,073
Average shares outstanding- diluted	1,199,235		1,198,895
Allowance for loan losses:
Balance at beginning of period	$	3,196,953	$	3,402,355
Charge-offs:
One-to-four family	-		6,960
Commercial real estate	-		146,134
Land/land development	-		-
Commercial	-		-
Consumer	26,631		30,980
Gross charge-offs	26,631		184,074
Recoveries:
One-to-four family	6,020		1,652
Commercial real estate	-		-
Land/land development	-		-
Commercial	13,129		1,703
Consumer	87,709		40,787
Gross recoveries	106,858		44,142
Net charge-offs/(recoveries)	(80,227)		139,932
Additions charged to operations	-		-
Balance at end of period	$	3,277,180	$	3,262,423

Net loan charge-offs to average loans (1)	(0.17%)		0.32%

Nonperforming assets (000's)	At March 31,		At December 31,
Loans:	2016		2015
Non-accrual	$	4,180	$	3,793
Past 90 days or more and still accruing	-		-
Troubled debt restructured	789		592
Total nonperforming loans	4,969		4,385
Real estate owned	76		117
Other repossessed assets	-		-
Total nonperforming assets	$	5,045	$	4,502

Nonperforming assets to total assets	1.74%			1.58%
Nonperforming loans to total loans	2.62%			2.36%
Allowance for loan losses to nonperforming loans	65.95%			72.91%
Allowance for loan losses to net loans receivable	1.76%			1.75%


	At March 31,
	2016		2015

Stockholders' equity as a % of total assets	11.49%		11.22%
Book value per share	$	27.78	$	25.94
Common shares outstanding- EOP	1,199,879		1,199,879

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