Northeast Indiana Bancorp, Inc. Announces Third Quarter Earnings
HUNTINGTON, Ind., Oct. 15 /PRNewswire-FirstCall/ -- Northeast Indiana Bancorp, Inc. (OTC Bulletin Board: NIDB), the parent company of First Federal Savings Bank, today announced net income of $539,000 ($0.44 per diluted common share) for the Company's third quarter ended September 30, 2010 compared to net income of $518,000 ($0.42 per diluted common share) for the third quarter ended September 30, 2009. The current three months earnings equates to an annualized return on average assets (ROA) of 0.83% and a return on average equity (ROE) of 9.02% compared to an annualized ROA of 0.82% and an ROE of 9.20% for the three months ended September 30, 2009.
Net interest income increased by $82,000 or 3.9% to $2.2 million for the quarter ended September 30, 2010 when compared to $2.1 million for the quarter ended September 30, 2009. The Company's net interest margin increased by two basis points to 3.55% for the current quarter compared to 3.53% in the year earlier quarter. On a linked quarter basis, the Company's 3.55% net interest margin was unchanged compared to the quarter ended June 30, 2010 net interest margin.
The Company made a $500,000 provision for loan loss during the quarter ended September 30, 2010 compared to a $350,000 provision for loan loss for the quarter ended September 30, 2009. Management continues to feel it is prudent to increase the allowance for loan losses by setting aside provisions for loan losses at higher levels during these weak economic conditions. The Company experienced net charge-offs of $515,000 for the quarter ended September 30, 2010 compared to net charge-offs of $89,000 for the quarter ended September 30, 2009.
Noninterest income increased slightly to $689,000 for the third quarter ended September 30, 2010 compared to $669,000 during the quarter ended September 30, 2009. The modest increase is mostly due to a decrease in net losses on the sale of repossessed assets of roughly $35,000 between quarterly periods.
Noninterest expense was relatively unchanged at $1.6 million for the quarters ended September 30, 2010 and September 30, 2009. Increases in salaries and employee benefits were offset by declines in occupancy, professional fees and other expenses.
Net income for the nine months ended September 30, 2010 decreased slightly to $1.48 million ($1.21 per diluted common share) compared to net income of $1.53 million ($1.24 per diluted common share) for the nine months ended September 30, 2009.
Net interest income increased $247,000 or 3.9% to $6.34 million for the nine months ended September 30, 2010 compared to $6.09 million for the prior year nine month period. Noninterest income was relatively unchanged at $1.87 million for both nine month periods. Noninterest expense was $108,000 higher for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009. Increases in salaries and employee benefits between nine month periods were mostly due to the opening of our Fort Wayne full service branch during the third quarter of 2009. These increases were partially offset by decreases in deposit insurance premiums and other expenses.
Total assets increased $7.86 million or 3.1% to $260.58 million at September 30, 2010 compared to December 31, 2009 assets of $252.72 million. Net loans decreased $3.45 million to $187.82 million at September 30, 2010 compared to $191.27 million at December 31, 2009. Total deposits increased sharply by $22.42 million or 14.5% to $177.05 million at September 30, 2010 from $154.63 million at December 31, 2009. The significant increase in total deposits came in noninterest bearing DDA, NOW, MMDA and Savings balances through First Federal's full service branches. These newly acquired lower-costing deposits were utilized to pay off maturing brokered deposits and wholesale borrowed funds. Borrowed funds decreased $16.23 million or 22.2% to $56.83 million at September 30, 2010 compared to $73.06 million at December 31, 2009.
Shareholder's equity at September 30, 2010 was $24.27 million compared to $22.96 million at December 31, 2009. The book value of NEIB's stock was $19.58 per common share as of September 30, 2010. The number of outstanding common shares was 1,239,946. The last reported trade of the stock on October 13, 2010 was $10.75 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 four full-service Indiana offices in Huntington (2), Warsaw and Fort Wayne. The Company is traded on the Over the Counter Bulletin Board 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 |
September 30, 2010 |
December 31, 2009 |
||||
Interest-earning cash and cash equivalents |
$ |
9,824,412 |
$ |
10,929,272 |
||
Noninterest earning cash and cash equivalents |
2,305,206 |
2,473,235 |
||||
Total cash and cash equivalents |
12,129,618 |
13,402,507 |
||||
Securities available for sale |
45,332,202 |
33,025,298 |
||||
Securities held to maturity |
400,000 |
550,000 |
||||
Loans held for sale |
460,000 |
53,200 |
||||
Loans receivable, net of allowance for loan loss September 30, 2010 $2,823,116 and December 31, 2009 $2,868,468 |
187,819,947 |
191,267,218 |
||||
Accrued interest receivable |
1,048,063 |
1,040,528 |
||||
Premises and equipment |
2,092,115 |
2,158,406 |
||||
Investments in limited liability partnerships |
252,798 |
317,643 |
||||
Cash surrender value of life insurance |
6,702,509 |
6,514,390 |
||||
Other assets |
4,344,203 |
4,395,150 |
||||
Total Assets |
$ |
260,581,455 |
$ |
252,724,340 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Non-interest bearing deposits |
12,136,512 |
11,065,663 |
||||
Interest bearing deposits |
164,915,548 |
143,563,858 |
||||
Borrowed Funds |
56,831,370 |
73,064,228 |
||||
Accrued interest payable and other liabilities |
2,424,227 |
2,065,832 |
||||
Total Liabilities |
236,307,657 |
2,229,759,581 |
||||
Retained earnings – substantially restricted |
24,273,798 |
22,964,759 |
||||
Total Liabilities and Shareholders' Equity |
$ |
260,581,455 |
$ |
252,724,340 |
||
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
September 30, |
September 30, |
||||||||||
2010 |
2009 |
2010 |
2009 |
||||||||
Total interest income |
$ |
3,248,075 |
$ |
3,462,834 |
$ |
9,691,357 |
$ |
10,446,720 |
|||
Total interest expense |
1,072,797 |
1,369,172 |
3,349,686 |
4,351,652 |
|||||||
Net interest income |
$ |
2,175,278 |
$ |
2,093,662 |
$ |
6,341,671 |
$ |
6,095,068 |
|||
Provision for loan losses |
500,000 |
350,000 |
1,350,000 |
925,000 |
|||||||
Net interest income after provision for loan losses |
$ |
1,675,278 |
$ |
1,743,662 |
$ |
4,991,671 |
$ |
5,170,068 |
|||
Service charges on deposit accounts |
172,027 |
188,516 |
515,344 |
519,706 |
|||||||
Net (loss) on sale of securities |
(29,412) |
(37,346) |
(69,259) |
(84,135) |
|||||||
Other than temporary impairment-securities |
- |
- |
- |
- |
|||||||
Net gain on sale of loans |
235,142 |
232,774 |
480,709 |
662,010 |
|||||||
Net (loss) on sale of repossessed assets |
(742) |
(35,711) |
(54,083) |
(126,656) |
|||||||
Brokerage fees |
87,169 |
77,279 |
304,914 |
215,690 |
|||||||
Increase in cash surrender value of life insurance |
61,481 |
61,626 |
188,119 |
189,499 |
|||||||
Other income |
161,171 |
181,964 |
510,238 |
493,521 |
|||||||
Total noninterest income |
$ |
686,836 |
$ |
669,102 |
$ |
1,875,982 |
$ |
1,869,635 |
|||
Salaries and employee benefits |
848,710 |
817,746 |
2,553,739 |
2,314,347 |
|||||||
Occupancy |
226,371 |
234,574 |
654,757 |
629,670 |
|||||||
Data processing |
188,722 |
181,915 |
566,441 |
566,629 |
|||||||
Deposit insurance premiums |
84,000 |
90,000 |
233,400 |
326,000 |
|||||||
Professional fees |
77,412 |
89,276 |
221,122 |
202,156 |
|||||||
Correspondent bank charges |
32,319 |
28,729 |
92,867 |
91,448 |
|||||||
Valuation allowances – repossessed assets |
- |
- |
- |
- |
|||||||
Other expense |
174,785 |
204,388 |
560,359 |
644,631 |
|||||||
Total noninterest expenses |
$ |
1,632,319 |
$ |
1,646,628 |
$ |
4,882,685 |
$ |
4,774,881 |
|||
Income before income tax expense |
$ |
729,795 |
$ |
766,136 |
$ |
1,984,968 |
$ |
2,264,822 |
|||
Income tax expense |
190,325 |
248,048 |
502,430 |
737,567 |
|||||||
Net Income |
$ |
539,470 |
$ |
518,088 |
$ |
1,482,538 |
$ |
1,527,255 |
|||
NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||
2010 |
2009 |
2010 |
2009 |
|||||||||
Basic Earnings per common share |
0.44 |
0.42 |
1.21 |
1.24 |
||||||||
Dilutive Earnings per share |
0.44 |
0.42 |
1.21 |
1.24 |
||||||||
Net interest margin |
3.55% |
3.53% |
3.53% |
3.45% |
||||||||
Return on average assets |
0.83% |
0.82% |
0.77% |
0.81% |
||||||||
Return on average equity |
9.02% |
9.20% |
8.42% |
9.17% |
||||||||
Efficiency ratio |
57.03% |
59.60 |
59.42% |
59.95% |
||||||||
Average shares outstanding- primary |
1,229,589 |
1,228,539 |
1,229,235 |
1,228,060 |
||||||||
Average shares outstanding- diluted |
1,229,872 |
1,228,615 |
1,229,919 |
1,228,780 |
||||||||
Allowance for loan losses: |
||||||||||||
Balance at beginning of period |
$ |
2,838,360 |
$ |
2,161,415 |
$ |
2,868,468 |
$ |
1,750,605 |
||||
Charge-offs: |
||||||||||||
One-to-four family |
213,145 |
9,695 |
312,504 |
203,962 |
||||||||
Commercial real estate |
174,286 |
- |
302,368 |
- |
||||||||
Commercial |
126,046 |
59,834 |
801,106 |
74,192 |
||||||||
Consumer |
21,933 |
26,493 |
31,286 |
144,030 |
||||||||
Gross charge-offs |
535,410 |
96,022 |
1,447,264 |
422,184 |
||||||||
Recoveries: |
||||||||||||
One-to-four family |
975 |
625 |
2,925 |
1,755 |
||||||||
Commercial real estate |
455 |
- |
455 |
- |
||||||||
Commercial |
6,791 |
- |
6,791 |
136,635 |
||||||||
Consumer |
11,945 |
6,856 |
41,742 |
31,063 |
||||||||
Gross recoveries |
20,166 |
7,481 |
51,912 |
169,453 |
||||||||
Net charge-offs |
515,244 |
88,541 |
1,395,352 |
252,731 |
||||||||
Additions charged to operations |
500,000 |
350,000 |
1,350,000 |
925,000 |
||||||||
Balance at end of period |
$ |
2,823,116 |
$ |
2,422,874 |
$ |
2,823,116 |
$ |
2,422,874 |
||||
Net loan charge-offs to average loans (1) |
1.06% |
0.18% |
0.95% |
0.17% |
||||||||
Nonperforming assets (000's) |
At September 30, |
At September 30, |
At June 30, |
At December 31, |
||||||||
Loans: |
2010 |
2009 |
2010 |
2009 |
||||||||
Non-accrual |
$ |
6,246 |
$ |
2,251 |
$ |
4,552 |
$ |
2,826 |
||||
Past 90 days or more and still accruing |
- |
- |
- |
- |
||||||||
Troubled debt restructured |
708 |
3,000 |
621 |
3,008 |
||||||||
Total nonperforming loans |
6,954 |
5,251 |
5,173 |
5,834 |
||||||||
Real estate owned |
1,487 |
1,556 |
1,058 |
934 |
||||||||
Other repossessed assets |
19 |
7 |
6 |
11 |
||||||||
Total nonperforming assets |
$ |
8,460 |
$ |
6,814 |
$ |
6,237 |
$ |
6,779 |
||||
Nonperforming assets to total assets |
3.28% |
2.75% |
2.42% |
2.68% |
||||||||
Nonperforming loans to total loans |
3.65% |
2.63% |
2.68% |
3.01% |
||||||||
Allowance for loan losses to nonperforming loans |
40.59% |
46.14% |
54.86% |
49.16% |
||||||||
Allowance for loan losses to net loans receivable |
1.48% |
1.21% |
1.49% |
1.50% |
||||||||
At September 30, |
||||||
2010 |
2009 |
|||||
Stockholders' equity as a % of total assets |
9.32% |
9.25% |
||||
Book value per share |
$ |
19.58 |
$ |
18.60 |
||
Common shares outstanding- EOP |
1,239,946 |
1,230,670 |
||||
(1) Ratios for the three-month periods are annualized. |
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SOURCE Northeast Indiana Bancorp, Inc.
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