Northeast Indiana Bancorp, Inc. Announces Sharp Increase In First Quarter Earnings

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Apr 15, 2014, 04:25 ET

HUNTINGTON, Ind., April 15, 2014 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced that net income increased $293,000 or 54% to $840,000 ($0.69 per diluted common share) for the first quarter ended March 31, 2014 compared to net income of $547,000 ($0.44 per diluted common share) for the first quarter ended March 31, 2013. The current three months earnings equate to an annualized return on average assets (ROA) of 1.24% and a return on average equity (ROE) of 11.91% compared to an ROA of 0.82% and an ROE of 7.79% for the prior year quarter ended March 31, 2013.

Commenting on the financial results, First Federal Savings Bank CEO Michael S. Zahn stated, "We are extremely pleased with our recent financial performance. A combination of factors has led to our success. The most important factor is the hard work and dedication of our employees. We've been able to expand our margins while controlling overhead. In addition, we've been able to serve our business customers, which was demonstrated by First Federal Savings Bank being listed as the 3^rd largest SBA lender in the state of Indiana based on dollar volume as of March 31, 2014."

Shareholders' equity increased to $28.5 million at March 31, 2014 compared to $27.8 million at December 31, 2013. The book value of NIDB stock was $23.42 per common share as of March 31, 2014. The number of outstanding common shares was 1,216,286. The Company also repurchased 13,160 shares for treasury during the quarter ended March 31, 2014 under a previously announced stock repurchase program. The last reported trade of the stock on April 14, 2014 was $22.00 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.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*					March 31, 2014		December 31, 2013
Interest-earning cash and cash equivalents					$	7,088,098	$	5,476,740
Noninterest earning cash and cash equivalents					3,092,889		2,481,418
Total cash and cash equivalents					10,180,987		7,958,158
Interest-earning time deposits					7,624,633		7,135,000
Securities available for sale					80,437,694		86,295,635
Securities held to maturity					1,437,933		1,466,003
Loans held for sale					416,450		142,500
Loans receivable, net of allowance for loan loss March 31, 2014 $3,522,767 and December 31, 2013 $3,846,001					158,048,785		150,790,666
Accrued interest receivable					948,422		932,105
Premises and equipment					3,061,653		2,929,520
Cash surrender value of life insurance					7,554,468		7,497,893
Other assets					2,549,382		3,410,137
*Total Assets*					$	272,260,407	$	268,557,617
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits					19,792,708		18,196,448
Interest bearing deposits					193,372,353		190,686,051
Borrowed Funds					27,513,866		28,755,460
Accrued interest payable and other liabilities					3,097,476		3,109,814
*Total Liabilities*					243,776,403		240,747,773

Retained earnings – substantially restricted					28,484,004		27,809,844
*Total Liabilities and Shareholders' Equity*					$	272,260,407	$		268,557,617

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	March 31,
	2014		2013
Total interest income	$	2,627,946	$	2,467,508
Total interest expense		313,707		373,199
Net interest income	$	2,314,239	$	2,094,309
Provision for loan losses		225,000		300,000
Net interest income after provision for loan losses	$	2,089,239	$	1,794,309
Service charges on deposit accounts		116,845		122,640
Net loss on sale of securities		(7,211)		(618)
Net gain on sale of loans		437,334		179,194
Net gain on sale of repossessed assets		21,690		18,346
Brokerage fees		123,180		114,297
Increase in cash surrender value of life insurance		56,575		61,513
Other income		170,980		165,184
Total noninterest income	$	919,393	$	660,556
Salaries and employee benefits		927,244		885,154
Occupancy		294,625		274,347
Data processing		201,003		196,378
Deposit insurance premiums		60,000		60,000
Professional fees		103,166		70,474
Correspondent bank charges		28,931		29,771
Other expense		202,770		213,045
Total noninterest expenses	$	1,817,739	$	1,729,169
Income before income tax expenses	$	1,190,893	$	725,696
Income tax expense		350,751		178,568
Net Income	$	840,142	$	547,128

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended March 31,
	2014					2013
Basic Earnings per common share	0.69					0.44
Dilutive Earnings per share	0.69					0.44
Net interest margin	3.63%					3.36%
Return on average assets	1.24%					0.82%
Return on average equity	11.91%					7.79%
Efficiency ratio	56.21%					62.77%
Average shares outstanding- primary	1,223,509					1,235,720
Average shares outstanding- diluted	1,224,127					1,235,978
Allowance for loan losses:
Balance at beginning of period	$		3,355,534			$		3,846,021
Charge-offs:
One-to-four family	17,547					11,346
Commercial real estate	-					-
Land/land development	-					-
Commercial	-					-
Consumer	56,900					80,104
Gross charge-offs	74,447					91,450
Recoveries:
One-to-four family	1,576					1,474
Commercial real estate	-					72,249
Land/land development	-					-
Commercial	-					25,025
Consumer	15,104					26,214
Gross recoveries	16,680					124,962
Net charge-offs / (recoveries)	57,767					(33,512)
Additions charged to operations	225,000					300,000
Balance at end of period	$		3,522,767			$		4,179,533

Net loan charge-offs / (recoveries) to average loans (1)	0.14%					(0.09%)

Nonperforming assets (000's)	At March 31,					At December 31,
Loans:	2014					2013
Non-accrual		$		4,742			$		5,443
Past 90 days or more and still accruing	-					-
Troubled debt restructured	1,334					1,398
Total nonperforming loans	6,076					6,841
Real estate owned	256					508
Other repossessed assets	-					20
Total nonperforming assets		$		6,332			$		7,369

Nonperforming assets to total assets	2.33%				2.74%
Nonperforming loans to total loans	3.76%				4.44%
Allowance for loan losses to nonperforming loans	57.98%				49.06%
Allowance for loan losses to net loans receivable	2.23%				2.23%


	At March 31,
	2014					2013

Stockholders' equity as a % of total assets	10.46%					10.53%
Book value per share		$ 23.42					$ 22.64
Common shares outstanding- EOP	1,216,286					1,239,946

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