Northeast Indiana Bancorp, Inc. Announces Third Quarter Earnings

Oct 15, 2010, 11:29 ET from Northeast Indiana Bancorp, Inc.

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.

SOURCE Northeast Indiana Bancorp, Inc.



RELATED LINKS

http://www.firstfedindiana.com