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

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Jul 14, 2020, 17:32 ET

HUNTINGTON, Ind., July 14, 2020 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income for the six months ended June 30, 2020 increased by $298,000 or 13.7% to $2.48 million ($2.06 per diluted common share) when compared to net income of $2.18 million ($1.82 per diluted common share) for the six months ended June 30, 2019. The current six months earnings equate to an annualized ROA of 1.31% and a ROE of 11.58% compared to an annualized ROA of 1.25% and an annualized ROE of 11.32% for the six months ended June 30, 2019. The current earnings level represents Record net income for any six-month period ended June 30 in the Company's history.

Net income also increased by $323,000 or 28.9% to $1.44 million ($1.20 per diluted common share) for the Company's second quarter ended June 30, 2020 when compared to net income of $1.12 million ($0.94 per diluted common share) for the second quarter ended June 30, 2019. The current three months earnings equate to an annualized return on average assets (ROA) of 1.44% and a return on average equity (ROE) of 13.24% compared to an annualized ROA of 1.26% and a ROE of 11.45% for the three months ended June 30, 2019. The current quarterly earnings level represents Record net income for any quarterly period in the Company's history.

Total Assets increased $51.2 million or 14.5% to $405.1 million at June 30, 2020 compared to $353.9 million at December 31, 2019. Net loans increased $23.2 million or 9.1% to $276.6 million at June 30, 2020 compared to $253.5 million at December 31, 2019. Total deposits increased $48.9 million or 19.4% to $301.2 million at June 30, 2020 compared to $252.3 million at December 31, 2019. Shareholder's equity increased $2.9 million or 6.9% to $44.2 million at June 30, 2020 compared to $41.3 million at December 31, 2019. The book value of NIDB's stock was $36.49 per common share as of June 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 July 13, 2020 was $32.00 per common share.

First Federal Savings Bank supported small business clients and non-profits in Northeast Indiana, utilizing the SBA's Paycheck Protection Program ("PPP"), during the quarter ended June 30, 2020. Those efforts resulted in 400 small business or non-profit clients receiving $39.2 million in PPP funding. These efforts helped to support or retain 6,000 jobs in the communities we serve.

First Federal Savings Bank also had Record 1-4 family mortgage production during the quarter ended June 30, 2020. We originated mortgage loans in the amount of $33.3 million in total for our retail clients which should help households with lower payments or lower interest over the life of their mortgage loans. We anticipate mortgage production continuing to remain at these elevated levels at least over the next three months if not longer.

Michael S. Zahn, President and CEO, commented "in addition to our Record financial performance, I'm especially proud of our team's efforts to serve those in need in these unprecedented times. As an essential business, we never shut down or slowed down over the past few months. By providing small businesses and non-profits a financial lifeline through the Paycheck Protection Program and working with homeowners to ease their mortgage burdens, First Federal Savings Bank has shown the importance of Community Banking."

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*	June 30, 2020		December 31, 2019
Interest-earning cash and cash equivalents	$	28,701,503	$	8,352,340
Noninterest earning cash and cash equivalents	4,997,320		2,863,471
Total cash and cash equivalents	33,698,823		11,215,811
Interest-earning time deposits	3,681,000		3,681,000
Securities available for sale	67,210,234		65,001,858
Securities held to maturity	2,033,923		1,044,197
Loans held for sale	2,564,543		134,000
Loans receivable, net of allowance for loan loss June 30, 2020 $3,664,820 and December 31, 2019 $3,191,605	276,620,407		253,461,826
Accrued interest receivable	1,643,735		1,242,788
Premises and equipment	4,981,996		4,971,271
Investments in limited liability partnerships	1,978,334		2,128,334
Cash surrender value of life insurance	8,952,206		8,839,193
Other assets	1,741,766		2,203,348
*Total Assets*	$	405,106,967	$	353,923,626
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits	47,989,030		30,011,306
Interest bearing deposits	253,188,490		222,271,145
Borrowed Funds	56,379,114		57,237,450
Accrued interest payable and other liabilities	3,380,197		3,086,817
*Total Liabilities*	360,936,831		312,606,718

Retained earnings – substantially restricted	44,170,136		41,316,908
*Total Liabilities and Shareholder's Equity*	$	405,106,967	$	353,923,626


CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended							Six Months Ended
		June 30,							June 30,
		2020				2019			2020				2019
Total interest income		$		3,826,584		$		4,094,696	$		7,599,147		$		8,009,553
Total interest expense				782,621				1,158,262			1,726,985				2,210,956
Net interest income		$		3,043,963		$		2,936,434	$		5,872,162		$		5,798,597
Provision for loan losses				120,000				75,000			340,000				150,000
Net interest income after provision for loan losses		$		2,923,963		$		2,861,434	$		5,532,162		$		5,648,597
Service charges on deposit accounts				134,682				176,845			320,719				348,902
Interchange Fees				150,302				151,683			297,208				282,867
Net gain (loss) on sale of securities				-				98,036			-				98,036
Net gain on sale of loans				764,833				117,351			1,042,004				262,269
Net gain (loss) on sale of repossessed assets				1,651				-			(16,535)				7,608
Brokerage fees				39,524				59,708			96,284				123,055
Increase in cash surrender value of life insurance				55,663				55,500			113,013				112,500
Other income				(103,838)				111,545			40,550				282,561
Total noninterest income		$		1,042,817		$		770,668	$		1,893,243		$		1,517,798
Salaries and employee benefits				1,185,091				1,311,045			2,481,280				2,597,374
Occupancy				267,496				276,878			513,000				561,538
Data processing				332,081				225,734			602,183				473,522
Deposit insurance premiums				25,500				24,000			45,500				24,000
Professional fees				56,595				123,483			121,030				233,559
Advertising and Marketing Fees				28,146				64,755			83,749				148,140
Correspondent bank charges				26,370				37,237			59,103				74,553
Other expense				296,399				271,765			566,076				543,003
Total noninterest expenses		$		2,217,678		$		2,334,897	$		4,471,921		$		4,655,689
Income before income tax expenses		$		1,749,102		$		1,297,205	$		2,953,484		$		2,510,706
Income tax expense				305,834				176,550			476,917				332,198
Net Income		$		1,443,268		$		1,120,655	$		2,476,567		$		2,178,508


	Three Months Ended June 30,									Six Months Ended June 30,
	2020				2019					2020				2019
Basic Earnings per common share	1.20				0.94					2.06				1.82
Dilutive Earnings per share	1.20				0.94					2.06				1.82
Net interest margin	3.22%				3.51%					3.31%				3.55%
Return on average assets	1.44%				1.26%					1.31%				1.25%
Return on average equity	13.24%				11.45%					11.58%				11.32%
Efficiency ratio	54.26%				62.98%					57.59%				63.63%
Average shares outstanding - primary	1,200,327				1,197,327					1,203,066				1,196,619
Average shares outstanding - diluted	1,200,327				1,197,327					1,203,816				1,197,419

Allowance for loan losses:
Balance at beginning of period	$		3,443,586		$		2,823,219			$		3,191,605		$		2,856,319
Charge-offs:
One-to-four family	-				-					-				-
Commercial real estate	-				-					17,952				73,705
Land/land development	-				-					-				-
Commercial	-				-					-				25,000
Consumer	11,684				20,915					45,127				85,409
Gross charge-offs	11,684				20,915					63,079				184,114
Recoveries:
One-to-four family	511				803					1,414				1,724
Commercial real estate	-				64,040					-				64,040
Land/land development	-				-					-				-
Commercial	51,919				22,068					105,919				22,068
Consumer	60,488				20,692					88,961				74,870
Gross recoveries	112,918				107,603					196,294				162,702
Net charge-offs/(recoveries)	(101,234)				(86,688)					(133,215)				21,412
Additions charged to operations	120,000				75,000					340,000				150,000
Balance at end of period	$		3,664,820		$		2,984,907			$		3,664,820		$		2,984,907

Net loan charge-offs/(recoveries) to average loans (1)	(0.14%)				(0.13%)					(0.10%)				0.02%

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

Nonperforming assets to total assets	1.72%				2.14%							1.95%
Nonperforming loans to total loans	2.48%				2.97%							2.59%
Allowance for loan losses to nonperforming loans	52.66%				45.41%							48.07%
Allowance for loan losses to net loans receivable	1.32%				1.37%							1.26%

	At June 30,
	2020				2019

Stockholders' equity as a % of total assets	10.90%				11.22%
Book value per share	$			36.49	$			33.34
Common shares outstanding- EOP	1,210,327				1,206,327