Northeast Indiana Bancorp, Inc. Announces Year To Date And Second Quarter Earnings

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Jul 19, 2016, 10:37 ET

HUNTINGTON, Ind., July 19, 2016 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income for the six months ended June 30, 2016 increased $149,000 or 8.3% to $1.96 million ($1.63 per diluted common share) compared to net income of $1.81 million ($1.51 per diluted common share) for the six months ended June 30, 2015. The current six months earnings equates to an annualized ROA of 1.34% and an ROE of 11.72% compared to an annualized ROA of 1.31% and an annualized ROE of 11.63% for the six months ended June 30, 2015.

Net income was $887,000 ($0.74 per diluted common share) for the Company's second quarter ended June 30, 2016 compared to net income of $918,000 ($0.77 per diluted common share) for the second quarter ended June 30, 2015. The current three months earnings equates to an annualized return on average assets (ROA) of 1.19% and a return on average equity (ROE) of 10.49% compared to an annualized ROA of 1.32% and an ROE of 11.66% for the three months ended June 30, 2015.

Total assets increased $10.2 million or 3.6% (7.2% annualized) to $294.3 million at June 30, 2016 compared to $284.1 million at December 31, 2015. Shareholder's equity was $34.2 million at June 30, 2016 compared to $32.3 million at December 31, 2015. The book value of NIDB's stock was $28.49 per common share as of June 30, 2016. Book value has increased $2.27 or 8.7% over the past twelve months. The number of outstanding common shares was 1,199,879 as of the same date. The last reported trade of the stock on July 18, 2016 was $29.26 per common share.

First Federal Savings Bank President and CEO, Michael Zahn states, "I'm proud of our team's effort through the first six months of 2016. Last year was a great year and to be performing at a higher level this year is quite an accomplishment." Zahn continues, "I'm most pleased with our growth numbers and am confident we will continue to grow at a manageable pace."

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.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
(Unaudited)

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

*ASSETS*									June 30, 2016						December 31, 2015
Interest-earning cash and cash equivalents									$		7,917,367				$	10,491,898
Noninterest earning cash and cash equivalents									2,157,654						1,960,543
Total cash and cash equivalents									10,075,021						12,452,441
Interest-earning time deposits									10,511,920						11,754,857
Securities available for sale									65,677,429						60,458,506
Securities held to maturity									2,527,271						2,685,585
Loans held for sale									151,200						-
Loans receivable, net of allowance for loan loss June 30, 2016 $3,231,811 and December 31, 2015 $3,196,953									187,989,149						182,238,993
Accrued interest receivable									963,165						976,484
Premises and equipment									4,176,024						2,880,607
Investments in limited liability partnerships									1,958,333						235,858
Cash surrender value of life insurance									8,049,868						7,939,443
Other assets									2,211,423						2,506,762
*Total Assets*									$		294,290,803				$		284,129,536
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits									23,798,909						23,253,557
Interest bearing deposits									191,393,617						186,281,637
Borrowed Funds									40,046,491						39,346,188
Accrued interest payable and other liabilities									4,872,664						2,910,474
*Total Liabilities*									260,111,681						251,791,856

Retained earnings – substantially restricted									34,179,122						32,337,680
*Total Liabilities and Shareholder's Equity*									$		294,290,803				$		284,129,536

CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended							Six Months Ended
		June 30,							June 30,
		2016				2015			2016					2015
Total interest income		$		2,796,367		$		2,631,440	$			5,644,342		$			5,307,555
Total interest expense				415,423				313,116				823,539					630,381
Net interest income		$		2,380,944		$		2,318,324	$			4,820,803		$			4,677,174
Provision for loan losses				-				-				-					-
Net interest income after provision for loan losses		$		2,380,944		$		2,318,324	$			4,820,803		$			4,677,174
Service charges on deposit accounts				168,401				143,776				308,963					261,139
Net gain (loss) on sale of securities				-				-				(1,457)					120,107
Net gain on sale of loans				250,935				288,434				727,667					441,868
Net gain (loss) on sale of repossessed assets				-				(9,771)				(12,759)					(12,186)
Brokerage fees				71,482				138,730				151,038					272,787
Increase in cash surrender value of life insurance				56,113				52,626				110,425					107,625
Other income				259,713				226,167				515,316					437,292
Total noninterest income		$		806,644		$		839,952	$			1,799,193		$			1,628,732
Salaries and employee benefits				1,045,085				1,020,850				2,016,753					2,064,153
Occupancy				256,283				258,108				521,474					548,078
Data processing				211,097				218,383				402,938					434,880
Deposit insurance premiums				45,000				51,000				90,000					87,000
Professional fees				73,006				77,326				136,541					159,970
Correspondent bank charges				37,178				34,506				70,018					67,594
Other expense				276,923				218,403				556,170					465,571
Total noninterest expenses		$		1,944,572		$		1,878,576	$			3,793,894		$			3,827,246
Income before income tax expenses		$		1,243,016		$		1,279,700	$			2,826,102		$			2,478,660
Income tax expense				356,105				361,412				866,533					668,467
Net Income		$		886,911		$		918,288	$			1,959,569		$			1,810,193


	Three Months Ended June 30,									Six Months Ended June 30,
	2016				2015					2016					2016
Basic Earnings per common share	0.74				0.77					1.63					1.51
Dilutive Earnings per share	0.74				0.77					1.63					1.51
Net interest margin	3.44%				3.55%					3.52%					3.59%
Return on average assets	1.19%				1.32%					1.34%					1.31%
Return on average equity	10.49%				11.66%					11.72%					11.63%
Efficiency ratio	61.00%				59.48%					57.31%					60.69%
Average shares outstanding - primary	1,198,979				1,198,679					1,198,934					1,198,378
Average shares outstanding - diluted	1,199,112				1,198,679					1,199,246					1,198,862

Allowance for loan losses:
Balance at beginning of period	$		3,277,180		$		3,262,423			$			3,196,953		$			3,402,355
Charge-offs:
One-to-four family	6,837				-					6,837					6,960
Commercial real estate	-				-					-					146,134
Land/land development	-				-					-					-
Commercial	476				-					476					-
Consumer	68,117				38,761					95,348					69,741
Gross charge-offs	76,030				38,761					102,661					222,835
Recoveries:
One-to-four family	4,689				1,057					10,709					2,709
Commercial real estate	-				-					-					-
Land/land development	-				-					-					-
Commercial	-				6,038					13,129					7,741
Consumer	25,972				37,460					113,681					78,427
Gross recoveries	30,661				44,735					137,519					88,877
Net charge-offs/(recoveries)	45,369				(5,974)					(34,858)					133,958
Additions charged to operations	-				-					-					-
Balance at end of period	$		3,231,811		$		3,268,397			$			3,231,811		$			3,268,397

Net loan charge-offs/(recoveries) to average loans (1)	0.02%				(0.01%)					(0.02%)					0.16%

Nonperforming assets (000's)	At June 30,				At March 31,					At December 31,
Loans:	2016				2016					2015
Non-accrual	$			4,198	$			4,180		$			3,793
Past 90 days or more and still accruing	-				-					-
Troubled debt restructured	814				789					592
Total nonperforming loans	5,012				4,969					4,385
Real estate owned	76				76					117
Other repossessed assets	-				-					-
Total nonperforming assets	$			5,088	$			5,045		$			4,502

Nonperforming assets to total assets	1.73%				1.74%					1.58%
Nonperforming loans to total loans	2.62%				2.62%					2.36%
Allowance for loan losses to nonperforming loans	64.47%				65.95%					72.91%
Allowance for loan losses to net loans receivable	1.72%				1.76%					1.75%

	At June 30,
	2016				2015

Stockholders' equity as a % of total assets	11.61%				11.35%
Book value per share	$			28.49	$		26.22
Common shares outstanding- EOP	1,199,879				1,199,879
(1) Ratios for the three-month periods are annualized.