NORTHEAST INDIANA BANCORP, INC. ANNOUNCES THIRD QUARTER 2024 EARNINGS
HUNTINGTON, Ind., Oct. 23, 2024 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income of $1.0 million ($0.43 per diluted common share) for the third quarter ended September 30, 2024 compared to net income of $1.2 million ($0.51 per diluted common share) for the third quarter ended September 30, 2023. The current quarter earnings equate to an annualized return on average assets (ROA) of 0.79% and an annualized return on average equity (ROE) of 8.46% compared to an annualized ROA of 1.02% and an annualized ROE of 11.16% for the third quarter ending September 30, 2023.
Net income for the nine months ended September 30, 2024, was $3.3 million, or $1.39 per diluted common share, compared to net income of $3.5 million, or $1.46 per diluted common share for the nine months ended September 30, 2023. The current nine months earnings equate to an annualized ROA of 0.87% and an annualized ROE of 9.49% compared to an annualized ROA of 1.01% and an annualized ROE of 10.72% for the nine months ended September 30, 2023.
For both the current quarter and nine months ended in 2024 as compared to the same periods in 2023, additional provision for credit loss expense contributed to the decrease of net income and was the result of increasing specific reserves on existing loans. An increase in other income during both periods in 2024 as compared to the same periods in 2023 helped to offset the increased expense.
Total assets increased $21.2 million, or 5.7% on an annualized basis, to $519.9 million at September 30, 2024 compared to total assets of $498.7 million at December 31, 2023. Total loans increased $13.6 million, or 4.9% on an annualized basis, to $384.3 million at September 30, 2024 compared to total loans of $370.7 million at December 31, 2023. Total deposits increased $18.7 million, or 6.2% on an annualized basis, to $419.8 million at September 30, 2024 compared to $401.1 million at December 31, 2023.
Shareholders' equity increased $2.8 million to $49.2 million at September 30, 2024 compared to $46.4 million at December 31, 2023. The book value of NIDB stock increased $0.93 to $20.46 per common share as of September 30, 2024, compared to $19.53 the previous quarter end. The number of outstanding common shares was 2,403,696 as of September 30, 2024.
*All share data has been adjusted to reflect Northeast Indiana Bancorp, Inc.'s two-for-one stock split effective July 14, 2023.
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 seven full-service Indiana offices in Huntington (2), Warsaw (2) and Fort Wayne (3). 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 | |||||||||||
September 30, | December 31, | September 30, | |||||||||
Balance Sheet (Unaudited) | 2024 | 2023 | 2023 | ||||||||
(Audited) | |||||||||||
Assets | |||||||||||
Non-interest earning cash and cash equivalents | $ 6,541,441 | $ 4,304,296 | $ 4,452,087 | ||||||||
Interest-earning cash and cash equivalents | 5,501,247 | 1,166,180 | 1,170,142 | ||||||||
Total cash and cash equivalents | 12,042,688 | 5,470,476 | 5,622,229 | ||||||||
Interest-earning time deposits | 4,520,000 | 4,320,000 | 4,324,000 | ||||||||
Securities available for sale | 75,040,367 | 76,228,755 | 72,562,496 | ||||||||
Securities held to maturity | 12,628,794 | 12,754,763 | 12,765,697 | ||||||||
Loans held for sale | 477,000 | - | 286,205 | ||||||||
Loans, gross | 390,627,340 | 375,992,822 | 363,830,115 | ||||||||
Allowance for loan losses | (6,326,783) | (5,335,305) | (4,529,632) | ||||||||
Loans, net | 384,300,557 | 370,657,517 | 359,300,483 | ||||||||
Accrued interest receivable | 2,485,615 | 2,354,636 | 2,238,906 | ||||||||
Premises and equipment | 7,930,946 | 7,366,169 | 7,075,694 | ||||||||
FHLB Stock | 2,835,000 | 2,227,500 | 2,182,500 | ||||||||
Investment in limited partnerships | 703,334 | 928,334 | 1,003,334 | ||||||||
Cash surrender value of life insurance | 12,075,427 | 11,751,653 | 11,675,890 | ||||||||
Other assets | 4,811,913 | 4,624,206 | 5,389,135 | ||||||||
Total Assets | $ 519,851,641 | $ 498,684,009 | $ 484,426,569 | ||||||||
Liabilities and Stockholders' Equity | |||||||||||
Non-interest bearing deposits | $ 48,860,067 | $ 54,764,981 | $ 56,131,800 | ||||||||
Interest bearing deposits | 370,951,769 | 346,307,200 | 335,395,992 | ||||||||
Borrowed funds | 45,500,000 | 47,250,000 | 45,000,000 | ||||||||
Accrued interest payable and other liabilities | 5,355,964 | 3,941,438 | 4,049,508 | ||||||||
Total Liabilities | 470,667,800 | 452,263,619 | 440,577,300 | ||||||||
Stockholders' equity | 49,183,841 | 46,420,390 | 43,849,269 | ||||||||
Total Liabilities and Stockholders' Equity | $ 519,851,641 | $ 498,684,009 | $ 484,426,569 | ||||||||
Three months ended | Nine months ended | ||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||
Income Statement (Unaudited) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||
Net interest income | |||||||||||
Total interest income | $ 7,178,589 | $ 7,082,107 | $ 6,354,262 | $ 20,990,629 | $ 17,455,735 | ||||||
Total interest expense | 3,369,314 | 3,318,155 | 2,610,737 | 9,792,811 | 6,632,701 | ||||||
Net interest income | 3,809,275 | 3,763,952 | 3,743,525 | 11,197,818 | 10,823,034 | ||||||
Provision for credit loss expense | |||||||||||
Loans | 495,000 | 100,000 | 90,000 | 1,095,000 | 270,000 | ||||||
Off-balance sheet credit exposures | (45,000) | (25,000) | - | (70,000) | - | ||||||
Total provision for credit loss expense | 450,000 | 75,000 | 90,000 | 1,025,000 | 270,000 | ||||||
Net interest income after provision for loan losses | 3,359,275 | 3,688,952 | 3,653,525 | 10,172,818 | 10,553,034 | ||||||
Non-interest income | |||||||||||
Service charges on deposit accounts | 174,619 | 175,044 | 184,111 | 528,332 | 549,989 | ||||||
Interchange fees | 208,053 | 208,124 | 199,248 | 616,195 | 591,772 | ||||||
Loan servicing fees | 63,117 | 98,161 | 102,753 | 270,986 | 306,526 | ||||||
Net gain on sale of loans | 137,577 | 109,679 | 115,722 | 283,281 | 261,195 | ||||||
Brokerage fees | 624 | 988 | 44,957 | 2,794 | 155,240 | ||||||
Increase in cash surrender value of life insurance | 83,603 | 83,254 | 74,217 | 249,399 | 221,226 | ||||||
Other income | 332,725 | 539,086 | 37,652 | 958,455 | 384,883 | ||||||
Total non-interest income | 1,000,318 | 1,214,336 | 758,660 | 2,909,442 | 2,470,832 | ||||||
Non-interest expense | |||||||||||
Salaries and employee benefits | 1,652,277 | 1,637,218 | 1,604,968 | 4,929,765 | 4,972,918 | ||||||
Occupancy | 390,467 | 363,586 | 330,735 | 1,109,104 | 1,041,135 | ||||||
Data processing | 435,356 | 397,025 | 397,132 | 1,271,213 | 1,185,772 | ||||||
Deposit insurance premiums | 75,000 | 88,000 | 46,000 | 237,000 | 151,500 | ||||||
Professional fees | 179,392 | 171,275 | 173,208 | 454,680 | 427,468 | ||||||
Advertising and marketing fees | 85,424 | 101,095 | 13,909 | 274,199 | 182,139 | ||||||
Correspondent bank charges | 36,337 | 44,094 | 35,395 | 120,027 | 109,468 | ||||||
Other expense | 273,585 | 332,658 | 386,385 | 947,739 | 923,389 | ||||||
Total non-interest expense | 3,127,838 | 3,134,951 | 2,987,732 | 9,343,727 | 8,993,789 | ||||||
Income before income taxes | 1,231,755 | 1,768,337 | 1,424,453 | 3,738,533 | 4,030,077 | ||||||
Income tax expense | 214,410 | 174,809 | 193,172 | 405,471 | 511,659 | ||||||
Net income | $ 1,017,345 | $ 1,593,528 | $ 1,231,281 | $ 3,333,062 | $ 3,518,418 | ||||||
Three months ended | Nine months ended | ||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||
Selected Financial Ratios and Other Financial Data (Unaudited) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||
Average shares outstanding - basic | 2,387,823 | 2,401,499 | 2,402,070 | 2,398,109 | 2,401,809 | ||||||
Average shares outstanding - diluted | 2,387,823 | 2,401,499 | 2,402,094 | 2,398,109 | 2,401,846 | ||||||
Basic earnings per share | $ 0.43 | $ 0.66 | $ 0.51 | $ 1.39 | $ 1.46 | ||||||
Diluted earnings per share | $ 0.43 | $ 0.66 | $ 0.51 | $ 1.39 | $ 1.46 | ||||||
Net interest margin | 3.06 % | 3.05 % | 3.21 % | 3.04 % | 3.22 % | ||||||
Return on average assets | 0.79 % | 1.24 % | 1.02 % | 0.87 % | 1.01 % | ||||||
Return on average equity | 8.46 % | 13.80 % | 11.16 % | 9.49 % | 10.72 % | ||||||
Efficiency ratio | 65.03 % | 62.97 % | 66.36 % | 66.23 % | 67.65 % | ||||||
Allowance for loan losses: | |||||||||||
Balance, beginning of period | $ 5,885,564 | $ 5,790,301 | $ 4,508,446 | $ 5,335,305 | $ 3,996,619 | ||||||
Charge-offs: | |||||||||||
One-to-four family | 39,022 | - | 21,457 | 39,022 | 27,466 | ||||||
Commercial real estate | - | - | - | - | - | ||||||
Land/land development | - | - | - | - | - | ||||||
Commercial | - | - | - | - | - | ||||||
Consumer | 52,872 | 24,953 | 73,324 | 147,549 | 130,265 | ||||||
Gross charge-offs | 91,894 | 24,953 | 94,781 | 186,571 | 157,731 | ||||||
Recoveries: | |||||||||||
One-to-four family | 1,523 | - | 586 | 1,523 | 586 | ||||||
Commercial real estate | - | - | - | - | - | ||||||
Land/land development | - | - | - | - | - | ||||||
Commercial | - | - | 600 | - | 3,730 | ||||||
Consumer | 36,590 | 20,216 | 24,781 | 81,526 | 66,428 | ||||||
Gross recoveries | 38,113 | 20,216 | 25,967 | 83,049 | 70,744 | ||||||
Net charge-offs (recoveries) | 53,781 | 4,737 | 68,814 | 103,522 | 86,987 | ||||||
CECL adjustment | - | - | - | - | 350,000 | ||||||
Provision for loan losses | 495,000 | 100,000 | 90,000 | 1,095,000 | 270,000 | ||||||
Balance, end of period | $ 6,326,783 | $ 5,885,564 | $ 4,529,632 | $ 6,326,783 | $ 4,529,632 | ||||||
Net loan charge-offs (recoveries) to average loans | 0.06 % | 0.00 % | 0.08 % | 0.04 % | 0.03 % | ||||||
As of | |||||||||||
September 30, | June 30, | September 30, | |||||||||
Non-performing assets | 2024 | 2024 | 2023 | ||||||||
Loans: | |||||||||||
Non-accrual | $ 4,551,701 | $ 5,222,476 | $ 3,667,841 | ||||||||
Past 90 days or more and still accruing | - | - | - | ||||||||
Troubled debt restructured | 507,797 | 524,970 | 524,970 | ||||||||
Total non-performing loans | 5,059,498 | 5,747,446 | 4,192,811 | ||||||||
Real estate owned | - | - | - | ||||||||
Other repossessed assets | - | - | - | ||||||||
Total non-performing assets | $ 5,059,498 | $ 5,747,446 | $ 4,192,811 | ||||||||
Non-performing assets to total assets | 0.97 % | 1.12 % | 0.87 % | ||||||||
Non-performing loans to gross loans | 1.30 % | 1.49 % | 1.15 % | ||||||||
Allowance for loan losses to non-performing loans | 125.05 % | 102.40 % | 108.03 % | ||||||||
Allowance for loan losses to gross loans | 1.62 % | 1.53 % | 1.24 % | ||||||||
Other financial ratios | |||||||||||
Tangible common equity | 9.46 % | 9.23 % | 9.05 % | ||||||||
Book value per share | $ 20.46 | $ 19.53 | $ 18.08 | ||||||||
Common shares outstanding | 2,403,696 | 2,417,283 | 2,425,670 | ||||||||
(1) Ratios for three and nine-month periods are annualized | |||||||||||
(2) All share data has been adjusted for the 2:1 stock split on July 14, 2023 | |||||||||||
SOURCE Northeast Indiana Bancorp, Inc.
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