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

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Oct 11, 2019, 11:18 ET

HUNTINGTON, Ind., Oct. 11, 2019 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income for the nine months ended September 30, 2019 increased $379,000 or 12.0% to $3.54 million ($2.96 per diluted common share), compared to net income of $3.16 million ($2.65 per diluted common share) for the nine months ended September 30, 2018. The current nine months earnings represent a new record for the Company and equates to an annualized ROA of 1.34% and an annualized ROE of 12.01%. This compares to an annualized ROA of 1.31% and an annualized ROE of 11.68% for the nine months ended September 30, 2018.

Net income increased $330,000 or 32.0% to $1.36 million ($1.14 per diluted common share) for the Company's third quarter ended September 30, 2019 compared to net income of $1.03 million ($0.86 per diluted common share) for the third quarter ended September 30, 2018. The current three months earnings represent a new record for the Company and equates to an annualized return on average assets (ROA) of 1.53% and a return on average equity (ROE) of 13.31%. This compares to an annualized ROA of 1.27% and an annualized ROE of 11.22% for the three months ended September 30, 2018.

"We are very pleased with our record performance this quarter and year to date," states Michael Zahn, President and CEO of First Federal Savings Bank. Zahn continues, "We continue to see steady growth in both deposits and loans while maintaining strong profitability. The dedication and execution from our team continues to provide excellent financial results."

Net Loans Receivable have increased $11.3 million or 4.7% to $251.4 million at September 30, 2019 compared to $240.1 million at December 31, 2018. Total Deposits have increased $13.0 million or 5.6% to $246.3 million at September 30, 2019 compared to $233.3 million at December 31, 2018. Shareholder's equity increased $4.0 million or 10.8% to $41.3 million at September 30, 2019 compared to $37.3 million at December 31, 2018. The book value of NIDB's stock was $34.28 per common share as of September 30, 2019. The number of outstanding common shares was 1,206,327 as of the same date. The last reported trade of the stock on October 10, 2019 was $39.00 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*						September 30, 2019						December 31, 2018
Interest-earning cash and cash equivalents						$		10,276,264				$		3,605,610
Noninterest earning cash and cash equivalents						2,787,770						2,685,698
Total cash and cash equivalents						13,064,034						6,291,308
Interest- earning time deposits						3,681,000						3,436,000
Securities available for sale						63,466,943						63,898,265
Securities held to maturity						1,044,606						1,233,843
Loans held for sale						728,800						453,100
Loans receivable, net of allowance for loan loss September 30, 2019 $3,094,673 and December 31, 2018 $2,856,319						251,392,527						240,075,827
Accrued interest receivable						1,258,858						1,314,404
Premises and equipment						3,864,415						3,988,192
Investments in limited liability partnerships						2,203,334						2,428,334
Cash surrender value of life insurance						8,782,818						8,613,693
Other assets						2,179,901						2,477,748
*Total Assets*						$		351,667,236				$		334,210,714
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits						31,568,750						26,751,611
Interest bearing deposits						214,762,649						206,618,957
Borrowed Funds						59,485,134						59,763,974
Accrued interest payable and other liabilities						4,495,034						3,735,912
*Total Liabilities*						310,311,567						296,870,454

Retained earnings – substantially restricted						41,355,669						37,340,260
*Total Liabilities and Shareholders' Equity*						$		351,667,236				$			334,210,714

CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2019		2018		2019					2018
Total interest income		$	4,097,681	$	3,560,452	$			12,107,235		$		10,380,320
Total interest expense			1,104,242		848,973				3,315,199				2,283,207
Net interest income		$	2,993,439	$	2,711,479	$			8,792,036		$		8,097,113
Provision for loan losses			200,000		-				350,000				-
Net interest income after provision for loan losses		$	2,793,439	$	2,711,479	$			8,442,036		$		8,097,113
Service charges on deposit accounts			190,919		170,016				539,822				491,061
Interchange Fees			160,982		133,327				443,850				395,271
Net gain (loss) on sale of securities			(6,510)		-				91,526				(4,947)
Net gain on sale of loans			385,842		138,351				648,112				545,420
Net gain (loss) on sale of repossessed assets			160,982		(5,000)				7,608				(4,851)
Brokerage fees			41,914		58,804				164,969				178,047
Increase in cash surrender value of life insurance			56,625		59,876				169,125				173,626
Other income			252,859		146,532				535,420				397,162
Total noninterest income		$	1,082,631	$	701,906	$			2,600,432		$		2,170,789
Salaries and employee benefits			1,279,760		1,186,985				3,877,132				3,565,269
Occupancy			291,719		279,721				853,257				804,954
Data processing			245,498		293,212				719,020				870,462
Deposit insurance premiums			-		14,000				24,000				62,000
Professional fees			53,695		91,612				287,255				233,507
Correspondent bank charges			35,306		33,868				109,859				97,101
Other expense			341,406		323,212				1,032,553				968,578
Total noninterest expenses		$	2,247,384	$	2,222,610	$			6,903,076		$		6,601,871
Income before income tax expense		$	1,628,686	$	1,190,775	$			4,139,392		$		3,666,031
Income tax expense			267,005		159,182				599,203				505,127
Net Income		$	1,361,681	$	1,031,593	$			3,540,189		$		3,160,904

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Basic Earnings per common share	1.14			0.86			2.96			2.65
Dilutive Earnings per share	1.14			0.86			2.96			2.65
Net interest margin	3.57%			3.56%			3.55%			3.59%
Return on average assets	1.53%			1.27%			1.34%			1.31%
Return on average equity	13.31%			11.22%			12.01%			11.68%
Efficiency ratio	55.14%			65.11%			60.59%			64.30%
Average shares outstanding- primary	1,198,419			1,195,119			1,197,226			1,194,024
Average shares outstanding- diluted	1,198,586			1,195,286			1,197,926			1,195,724
Allowance for loan losses:
Balance at beginning of period	$		2,984,907	$	2,808,485		$		2,856,319	$			2,746,523
Charge-offs:
One-to-four family	41,961			30,471			41,961			41,072
Commercial real estate	-			-			73,705			-
Land/land development	-			-			-			-
Commercial	-			-			25,000			2,250
Consumer	67,622			91,814			153,031			184,793
Gross charge-offs	109,583			122,285			293,698			228,115
Recoveries:
One-to-four family	936			474			2,660			1,164
Commercial real estate	-			-			64,040			66,755
Land/land development	-			-			-			-
Commercial	1,581			-			23,649			7,428
Consumer	16,832			40,444			91,703			133,363
Gross recoveries	19,349			40,918			182,052			208,710
Net charge-offs	90,234			81,367			111,646			19,405
Additions charged to operations	200,000			-			350,000			-
Balance at end of period	$		3,094,673	$	2,727,818		$		3,094,673	$			2,727,118

(1) Net loan charge-offs/(recoveries) to average loans	0.14%			0.14%			0.06%			0.01%

Nonperforming assets (000's)	At September 30,			At June 30,			At March 31,			At December 31,
Loans:	2019			2019			2019			2018
Non-accrual	$		4,952	$	4,970		$		2,291	$			2,674
Past 90 days or more and still accruing	-			-			-			-
Troubled debt restructured	470			530			552			170
Total nonperforming loans	5,422			5,500			2,843			2,844
Real estate owned	361			-			-			33
Other repossessed assets	-			-			-			-
Total nonperforming assets	$		5,783	$	5,500		$		2,843	$			2,877

Nonperforming assets to total assets	1.64%				1.53%		0.83%			0.86%
Nonperforming loans to total loans	2.13%				2.14%		1.14%			1.17%
Allowance for loan losses to nonperforming loans	57.08%				54.27%		99.30%			100.42%
Allowance for loan losses to net loans receivable	1.23%				1.18%		1.15%			1.19%


	At September 30,
	2019			2018

Stockholders' equity as a % of total assets	11.76%			11.29%
Book value per share	$		34.28	$	30.59
Common shares outstanding- EOP	1,206,327			1,206,327

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