NORTHEAST INDIANA BANCORP, INC. ANNOUNCES SECOND QUARTER 2023 EARNINGS
HUNTINGTON, Ind., July 28, 2023 /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, 2023, was $2.3 million, or $1.90 per diluted common share, compared to net income of $3.4 million, or $2.81 per diluted common share for the six months ended June 30, 2022. The current six months earnings equate to an annualized ROA of 1.00% and an annualized ROE of 10.46% compared to an annualized ROA of 1.61% and an annualized ROE of 14.96% for the six months ended June 30, 2022.
Net income for the second quarter ended June 30, 2023, was $1.1 million, or $0.93 per diluted common share, compared to net income of $1.6 million, or $1.33 per diluted common share for the second quarter ended June 30, 2022. The current quarter earnings equate to an annualized return on average assets (ROA) of 0.96% and an annualized return on average equity (ROE) of 10.16% compared to an annualized ROA of 1.52% and an annualized ROE of 14.81% for the second quarter June 30, 2022.
The declines in net income are primarily related to a decrease in net interest income and an increase in overhead expenses. Net Interest Income was down $500,000 through the first six months of 2023 compared to the same period in 2022. Payroll and employee benefit expenses increased $625,000 in 2023 compared to the same period in 2022. In addition, the gain on sale of mortgage loans decreased by $290,000 for the first six months of 2023 compared to the same period in 2022. Partially offsetting this decline was an increase in Non-Interest Operating Income of $225,000 for the first six months of 2023 compared to 2022.
Total Assets increased $30.1 million to $475.6 million at June 30, 2023 compared to $445.5 million at December 31, 2022. Net loans increased $26.9 million, or 16.9% on an annualized basis to $347.7 million at June 30, 2023 compared to $320.7 million at December 31, 2022. Total deposits increased $17.7 million, or 9.3% on an annualized basis to $383.9 million at June 30, 2023 compared to $366.8 million at December 31, 2022. Stockholder's equity increased slightly to $44.1 million at June 30, 2023 compared to $43.1 million at December 31, 2022. The book value of NIDB's stock was $36.42 per common share and tangible common equity ratio was 9.29% as of June 30, 2023.
Michael S. Zahn, President, and CEO commented, "In a challenging banking environment, we continue to experience excellent growth. With the rapid increases in interest rates by the Federal Reserve to combat inflation, margins continue to be under pressure. We are in a positive position to navigate the uncertain interest rate waters that lie ahead. Our focus on the success of our customers while investing in our employees should continue to serve our communities and enhance shareholder value."
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 six full-service Indiana offices in Huntington (2), Warsaw (2) 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 | ||||
June 30, | December 31, | June 30, | ||
Balance Sheet (Unaudited) | 2023 | 2022 | 2022 | |
(Audited) | ||||
Assets | ||||
Non-interest earning cash and cash equivalents | $ 5,035,444 | $ 3,141,705 | $ 4,216,886 | |
Interest-earning cash and cash equivalents | 2,600,052 | 747,920 | 165,720 | |
Total cash and cash equivalents | 7,635,496 | 3,889,625 | 4,382,607 | |
Interest-earning time deposits | 3,433,249 | 1,230,000 | 1,965,000 | |
Securities available for sale | 74,823,867 | 78,273,337 | 78,495,626 | |
Securities held to maturity | 12,776,430 | 12,062,446 | 12,081,645 | |
Loans held for sale | 528,600 | 189,600 | 161,200 | |
Loans, gross | 352,224,183 | 324,752,497 | 291,571,122 | |
Allowance for loan losses | (4,508,446) | (3,996,619) | (3,982,194) | |
Loans, net | 347,715,738 | 320,755,878 | 287,588,928 | |
Accrued interest receivable | 2,022,072 | 1,923,986 | 1,648,755 | |
Premises and equipment | 7,019,007 | 7,254,951 | 7,187,929 | |
FHLB Stock | 2,101,600 | 2,101,600 | 2,101,600 | |
Investment in limited partnerships | 1,078,334 | 1,228,334 | 1,378,334 | |
Cash surrender value of life insurance | 11,601,672 | 11,629,618 | 11,480,059 | |
Other assets | 4,892,556 | 4,988,219 | 4,943,047 | |
Total Assets | $ 475,628,620 | $ 445,527,594 | $ 413,414,729 | |
Liabilities and Stockholders' Equity | ||||
Non-interest bearing deposits | $ 59,627,379 | $ 53,232,315 | $ 59,310,279 | |
Interest bearing deposits | 324,309,052 | 313,584,014 | 298,125,285 | |
Borrowed funds | 43,500,000 | 32,000,000 | 11,200,000 | |
Accrued interest payable and other liabilities | 4,024,153 | 3,584,163 | 2,747,398 | |
Total Liabilities | 431,460,583 | 402,400,492 | 371,382,961 | |
Stockholders' equity | 44,168,037 | 43,127,102 | 42,031,768 | |
Total Liabilities and Stockholders' Equity | $ 475,628,620 | $ 445,527,594 | $ 413,414,729 | |
Three months ended | Six months ended | ||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||
Income Statement (Unaudited) | 2023 | 2023 | 2022 | 2023 | 2022 | ||
Net interest income | |||||||
Total interest income | $ 5,713,346 | $ 5,388,127 | $ 3,990,602 | $ 11,101,473 | $ 8,024,174 | ||
Total interest expense | 2,260,069 | 1,761,895 | 324,499 | 4,021,964 | 615,628 | ||
Net interest income | 3,453,277 | 3,626,232 | 3,666,104 | 7,079,509 | 7,408,546 | ||
Provision for loan losses | 90,000 | 90,000 | - | 180,000 | - | ||
Net interest income after provision for loan losses | 3,363,277 | 3,536,232 | 3,666,104 | 6,899,509 | 7,408,546 | ||
Non-interest income | |||||||
Service charges on deposit accounts | 177,656 | 188,222 | 186,399 | 365,878 | 340,797 | ||
Interchange fees | 200,186 | 192,338 | 202,532 | 392,524 | 388,873 | ||
Loan servicing fees | - | - | 88,523 | - | 192,926 | ||
Net gain on sale of loans | 79,680 | 65,793 | 189,597 | 145,473 | 432,478 | ||
Net loss on sale of repossessed assets | - | - | - | - | - | ||
Brokerage fees | 43,798 | 66,485 | 57,014 | 110,283 | 111,166 | ||
Increase in cash surrender value of life insurance | 73,360 | 73,649 | 72,984 | 147,009 | 148,118 | ||
Other income | 376,994 | 183,244 | 80,077 | 560,238 | 168,066 | ||
Total non-interest income | 951,674 | 769,730 | 877,126 | 1,721,404 | 1,782,424 | ||
Non-interest expense | |||||||
Salaries and employee benefits | 1,680,705 | 1,687,245 | 1,334,097 | 3,367,950 | 2,744,356 | ||
Occupancy | 369,466 | 340,935 | 328,827 | 710,401 | 611,294 | ||
Data processing | 394,044 | 394,597 | 360,896 | 788,641 | 717,815 | ||
Deposit insurance premiums | 56,000 | 49,500 | 28,500 | 105,500 | 59,000 | ||
Professional fees | 143,224 | 111,035 | 142,591 | 254,260 | 223,496 | ||
Advertising and marketing fees | 76,513 | 91,717 | 38,684 | 168,230 | 95,772 | ||
Correspondent bank charges | 35,342 | 38,732 | 31,310 | 74,074 | 57,052 | ||
Other expense | 292,984 | 253,251 | 368,060 | 546,235 | 610,640 | ||
Total non-interest expense | 3,048,278 | 2,967,012 | 2,632,965 | 6,015,290 | 5,119,425 | ||
Income before income taxes | 1,266,673 | 1,338,950 | 1,910,266 | 2,605,623 | 4,071,544 | ||
Income tax expense | 149,993 | 168,494 | 314,737 | 318,487 | 694,904 | ||
Net income | $ 1,116,680 | $ 1,170,456 | $ 1,595,529 | $ 2,287,136 | $ 3,376,640 | ||
Three months ended | Six months ended | ||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||
Selected Financial Ratios and Other Financial Data (Unaudited) | 2023 | 2023 | 2022 | 2023 | 2022 | ||
Average shares outstanding - basic | 1,201,035 | 1,200,659 | 1,199,885 | 1,200,851 | 1,199,512 | ||
Average shares outstanding - diluted | 1,201,035 | 1,200,703 | 1,200,059 | 1,200,873 | 1,199,757 | ||
Basic earnings per share | $ 0.93 | $ 0.97 | $ 1.33 | $ 1.90 | $ 2.82 | ||
Diluted earnings per share | $ 0.93 | $ 0.97 | $ 1.33 | $ 1.90 | $ 2.81 | ||
Net interest margin | 3.09 % | 3.35 % | 3.66 % | 3.22 % | 3.73 % | ||
Return on average assets | 0.96 % | 1.04 % | 1.52 % | 1.00 % | 1.61 % | ||
Return on average equity | 10.16 % | 10.75 % | 14.81 % | 10.46 % | 14.96 % | ||
Efficiency ratio | 69.20 % | 67.49 % | 57.95 % | 68.35 % | 55.70 % | ||
Allowance for loan losses: | |||||||
Balance, beginning of period | $ 4,421,505 | $ 3,996,619 | $ 4,004,074 | $ 3,996,619 | $ 3,998,392 | ||
Charge-offs: | |||||||
One-to-four family | 6,009 | - | - | 6,009 | - | ||
Commercial real estate | - | - | - | - | - | ||
Land/land development | - | - | - | - | - | ||
Commercial | - | - | - | - | - | ||
Consumer | 20,811 | 36,130 | 40,072 | 56,941 | 57,507 | ||
Gross charge-offs | 26,820 | 36,130 | 40,072 | 62,950 | 57,507 | ||
Recoveries: | |||||||
One-to-four family | - | - | 974 | - | 1,929 | ||
Commercial real estate | - | - | 113 | - | 331 | ||
Land/land development | - | - | - | - | - | ||
Commercial | 2,207 | 923 | - | 3,130 | 9,725 | ||
Consumer | 21,554 | 20,093 | 17,105 | 41,647 | 29,324 | ||
Gross recoveries | 23,761 | 21,016 | 18,192 | 44,777 | 41,309 | ||
Net charge-offs (recoveries) | 3,059 | 15,114 | 21,880 | 18,173 | 16,198 | ||
CECL adjustment | - | 350,000 | - | 350,000 | |||
Provision for loan losses | 90,000 | 90,000 | - | 180,000 | - | ||
Balance, end of period | $ 4,508,446 | $ 4,421,505 | $ 3,982,194 | $ 4,508,446 | $ 3,982,194 | ||
Net loan charge-offs (recoveries) to average loans | 0.00 % | 0.02 % | 0.03 % | 0.01 % | 0.01 % | ||
As of | |||||||
June 30, | March 31, | June 30, | |||||
Non-performing assets | 2023 | 2023 | 2022 | ||||
Loans: | |||||||
Non-accrual | $ 6,302,505 | $ 4,137,597 | $ 2,248,220 | ||||
Past 90 days or more and still accruing | - | - | - | ||||
Troubled debt restructured | 525,020 | 525,020 | 475,210 | ||||
Total non-performing loans | 6,827,525 | 4,662,617 | 2,723,430 | ||||
Real estate owned | - | - | - | ||||
Other repossessed assets | - | - | - | ||||
Total non-performing assets | $ 6,827,525 | $ 4,662,617 | $ 2,723,430 | ||||
Non-performing assets to total assets | 1.44 % | 1.03 % | 0.66 % | ||||
Non-performing loans to gross loans | 1.94 % | 1.41 % | 0.93 % | ||||
Allowance for loan losses to non-performing loans | 66.03 % | 94.83 % | 146.22 % | ||||
Allowance for loan losses to gross loans | 1.28 % | 1.34 % | 1.37 % | ||||
Other financial ratios | |||||||
Tangible common equity | 9.29 % | 9.69 % | 10.17 % | ||||
Book value per share | $ 36.42 | $ 36.02 | $ 34.88 | ||||
Common shares outstanding | 1,212,835 | 1,216,335 | 1,205,135 | ||||
(1) Ratios for three and six-month periods are annualized |
SOURCE Northeast Indiana Bancorp, Inc.
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