Northeast Indiana Bancorp, Inc. Announces Second Quarter Earnings

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Jul 12, 2013, 11:29 ET

HUNTINGTON, Ind., July 12, 2013 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income of $669,000 ($0.54 per diluted common share) for the Company's second quarter ended June 30, 2013 compared to net income of $656,000 ($0.53 per diluted common share) for the second quarter ended June 30, 2012. The current three months earnings equates to an annualized return on average assets (ROA) of 0.99% and a return on average equity (ROE) of 9.41% compared to an annualized ROA of 0.98% and an ROE of 9.76% for the three months ended June 30, 2012.

Net income for the six months ended June 30, 2013 was $1.2 million ($0.98 per diluted common share) compared to net income of $1.3 million ($1.09 per diluted common share) for the six months ended June 30, 2012. The current six months earnings equates to an annualized ROA of 0.91% and an ROE of 8.61% compared to an annualized ROA of 1.02% and an annualized ROE of 10.13% for the six months ended June 30,2012.

Commenting on the financial results, CEO Michael S. Zahn stated, "We are pleased with our continued financial success. Margin pressure is still an issue, but we have been able to offset this challenge by controlling overhead and maintaining strong mortgage banking and SBA loan production. Our asset quality continues to improve as the economy stabilizes."

Shareholder's equity was $27.6 million at June 30, 2013 compared to $27.9 million at December 31, 2012. The book value of NIDB's stock was $22.25 per common share as of June 30, 2013. The number of outstanding common shares was 1,239,946 as of the same date. The last reported trade of the stock on July 10, 2013 was $19.00 per common share. This is an increase of $2.60 or 15.9% over the last reported trade of the stock on December 31, 2012 of $16.40 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.com.

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, 2013		December 31, 2012
Interest-earning cash and cash equivalents	$	19,624,761	$	16,687,647
Noninterest earning cash and cash equivalents	2,801,766		3,997,988
Total cash and cash equivalents	22,426,527		20,685,635
Interest-earning time deposits	6,400,000		5,910,000
Securities available for sale	82,294,007		71,353,159
Securities held to maturity	1,496,264		1,326,984
Loans held for sale	1,356,350		1,549,475
Loans receivable, net of allowance for loan loss June 30, 2013 $3,718,475 and December 31, 2012 $3,846,021	143,067,421		154,746,404
Accrued interest receivable	938,234		929,061
Premises and equipment	2,966,337		2,989,226
Investments in limited liability partnerships	35,031		74,625
Cash surrender value of life insurance	7,379,618		7,261,343
Other assets	3,421,572		4,577,142
*Total Assets*	$	271,781,361	$		271,403,054
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits	19,878,880		20,123,659
Interest bearing deposits	190,894,644		191,462,228
Borrowed Funds	30,199,028		28,902,484
Accrued interest payable and other liabilities	3,225,488		2,975,529
*Total Liabilities*	244,198,040		243,463,900

Retained earnings – substantially restricted	27,583,321		27,939,154
*Total Liabilities and Shareholder's Equity*	$	271,781,361	$		271,403,054


CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Total interest income	$	2,419,264	$	2,832,239	$	4,886,773	$	5,756,176
Total interest expense		337,081		551,083		710,281		1,176,172
Net interest income	$	2,082,183	$	2,281,156	$	4,176,492	$	4,580,004
Provision for loan losses		300,000		300,000		600,000		600,000
Net interest income after provision for loan losses	$	1,782,183	$	1,981,156	$	3,576,492	$	3,980,004
Service charges on deposit accounts		124,681		132,286		247,322		270,465
Net gain on sale of securities		36,978		-		36,360		-
Net gain on sale of loans		370,064		232,078		549,259		467,670
Net gain (loss) on sale of repossessed assets		(1,798)		(14,564)		16,548		(38,188)
Brokerage fees		96,001		108,019		210,298		221,565
Increase in cash surrender value of life insurance		56,763		62,213		118,275		124,425
Other income		154,851		138,795		320,037		296,473
Total noninterest income	$	837,540	$	658,827	$	1,498,099	$	1,342,410
Salaries and employee benefits		871,614		905,464		1,756,770		1,780,223
Occupancy		268,697		235,613		543,044		471,772
Data processing		194,084		222,784		390,463		439,253
Deposit insurance premiums		60,000		60,000		120,000		120,000
Professional fees		71,564		87,005		142,037		198,750
Correspondent bank charges		30,000		29,659		59,771		60,080
Other expense		222,795		209,369		435,841		406,018
Total noninterest expenses	$	1,718,754	$	1,749,894	$	3,447,926	$	3,476,096
Income before income tax expenses	$	900,969	$	890,089	$	1,626,665	$	1,846,318
Income tax expense		232,082		234,253		410,650		496,774
Net Income	$	668,887	$	655,836	$	1,216,015	$	1,349,544

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013		2012
Basic Earnings per common share	0.54			0.53			0.98		1.09
Dilutive Earnings per share	0.54			0.53			0.98		1.09
Net interest margin	3.31%			3.68%			3.34%		3.74%
Return on average assets	0.99%			0.98%			0.91%		1.02%
Return on average equity	9.41%			9.76%			8.61%		10.13%
Efficiency ratio	58.87%			59.52%			60.76%		58.69%
Average shares outstanding - primary	1,236,235			1,234,380			1,235,979		1,234,125
Average shares outstanding - diluted	1,236,402			1,234.381			1,236,584		1,234,434

Allowance for loan losses:
Balance at beginning of period	$	4,179,533		$	3,440,919		$	3,846,021	$	4,061,508
Charge-offs:
One-to-four family	17,587			26,968			28,933		98,288
Commercial real estate	8,483			-			8,483		45,566
Land/land development	145,000			-			145,000		653,451
Commercial	637,391			-			637,391		176,345
Consumer	16,552			21,548			96,656		29,261
Gross charge-offs	825,013			48,516			916,463		1,002,911
Recoveries:
One-to-four family	1,841			5,260			3,315		6,609
Commercial real estate	552			-			72,801		-
Land/land development	30,000			-			30,000		-
Commercial	822			-			25,847		-
Consumer	30,740			23,697			56,954		56,164
Gross recoveries	63,955			28,957			188,917		62,763
Net charge-offs	761,058			19,559			727,546		940,148
Additions charged to operations	300,000			300,000			600,000		600,000
Balance at end of period	$	3,718,475		$	3,721,360		$	3,718,475	$	3,721,360

Net loan charge-offs to average loans (1)	1.98%			0.04%			0.94%		1.06%

Nonperforming assets (000's)	At June 30,			At March 31,			At December 31,
Loans:	2013			2013			2012
Non-accrual	$		5,553	$		7,194	$	5,464
Past 90 days or more and still accruing	-			-			-
Troubled debt restructured	1,666			1,662			3,347
Total nonperforming loans	7,219			8,856			8,811
Real estate owned	906			1,362			1,719
Other repossessed assets	-			17			-
Total nonperforming assets	$		8,125	$		10,235	$	10,530

Nonperforming assets to total assets	2.99%			3.89%			3.88%
Nonperforming loans to total loans	4.92%			5.71%			5.56%
Allowance for loan losses to nonperforming loans	51.51%			47.20%			43.65%
Allowance for loan losses to net loans receivable	2.53%			2.69%			2.43%

	At June 30,
	2013			2012

Stockholders' equity as a % of total assets	10.15%			10.00%
Book value per share	$		22.25	$	21.90
Common shares outstanding- EOP	1,239,946			1,239,946
(1) Ratios for the three-month periods are annualized.