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Northeast Indiana Bancorp, Inc. Announces Increased Year To Date Earnings

Company Release - 10/22/2018 5:18 PM ET

HUNTINGTON, Ind., Oct. 22, 2018 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income for the nine months ended September 30, 2018 increased $257,000 or 8.8% to $3.16 million ($2.65 per diluted common share), compared to net income of $2.90 million ($2.41 per diluted common share) for the nine months ended September 30, 2017.  The prior nine months earnings were increased by a negative Loan Loss Provision that increased earnings roughly $400,000, net of taxes.  Core earnings for the nine months ended September 30, 2017 would have been roughly $2.50 million without the negative Loan Loss Provision.  The current nine months earnings equates to an annualized ROA of 1.31% and an ROE of 11.68% compared to an annualized ROA of 1.28% and an annualized ROE of 11.08% for the nine months ended September 30, 2017.

(PRNewsfoto/Northeast Indiana Bancorp, Inc.)

Net income decreased $283,000 to $1.03 million ($0.86 per diluted common share) for the Company's third quarter ended September 30, 2018 compared to net income of $1.31 million ($1.10 per diluted common share) for the third quarter ended September 30, 2017.  Core earnings for the three months ended September 30, 2017 would have been roughly $915,000 without the negative Loan Loss Provision discussed above.  The current three months earnings equates to an annualized return on average assets (ROA) of 1.27% and a return on average equity (ROE) of 11.22% compared to an annualized ROA of 1.74% and an ROE of 14.70% for the three months ended September 30, 2017.

Net Loans Receivable have increased $4.2 million or 1.9% to $229.3 million at September 30, 2018 compared to $225.1 million at December 31, 2017.  Total Deposits have increased $20.9 million or 9.9% to $233.1 million at September 30, 2018 compared to $212.2 million at December 31, 2017.  Shareholder's equity was $36.9 million at September 30, 2018 compared to $35.7 million at December 31, 2017.  The book value of NIDB's stock was $30.59 per common share as of September 30, 2018.  The number of outstanding common shares was 1,206,327 as of the same date.  The last reported trade of the stock on October 19, 2018 was $38.00 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.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

 

September 30,
2018

December  31,
2017

Interest-earning cash and cash equivalents

$

7,589,922

$

3,954,186

Noninterest earning cash and cash equivalents

2,241,634

3,559,790

   Total cash and cash equivalents

9,831,556

7,513,976

Interest- earning time deposits

2,942,000

1,715,000

Securities available for sale

64,236,480

58,583,396

Securities held to maturity

1,234,242

1,728,199

Loans held for sale

648,150

1,064,300

Loans receivable, net of allowance for loan loss September 30, 2018 $2,727,118 and December 31, 2017 $2,746,523

229,303,016

225,132,535

Accrued interest receivable

1,236,347

1,246,930

Premises and equipment

4,024,539

4,148,328

Investments in limited liability partnerships

2,498,334

2,708,333

Cash surrender value of life insurance

8,555,818

8,382,193

Other assets

2,250,643

1,952,615

    Total Assets

$

326,761,125

$

314,175,805

LIABILITIES AND STOCKHOLDERS' EQUITY



Non-interest bearing deposits

28,141,322

25,242,627

Interest bearing deposits

204,962,441

186,916,030

Borrowed Funds

52,991,468

61,199,066

Accrued interest payable and other liabilities

3,764,843

5,098,911

    Total Liabilities

289,860,074

278,456,634




Retained earnings – substantially restricted

36,901,051

35,719,171

    Total Liabilities and Shareholders' Equity

$

326,761,125

$

314,175,805


CONSOLIDATED STATEMENTS OF INCOME



Three Months Ended

Nine Months Ended


September 30,

September 30,


2018

2017

2018

2017

Total interest income

$

3,560,452

$

3,096,331

$

10,380,320

$

9,018,361

Total interest expense


848,973


550,848


2,283,207


1,525,677

    Net interest income

$

2,711,479

$

2,545,483

$

8,097,113

$

7,492,684

Provision for loan losses


-


(650,000)


-


(600,000)

  Net interest income after provision for loan losses

$

2,711,479

$

3,195,483

$

8,097,113

$

8,092,684

     Service charges on deposit accounts


170,016


162,963


491,061


450,672

     Interchange Fees


133,327


115,142


395,271


344,715

     Net gain (loss) on sale of securities


-


785


(4,947)


(6,931)

     Net gain on sale of loans

138,351

126,705

545,420

471,475

     Net gain (loss) on sale of repossessed assets

(5,000)

1,372

(4,851)

(6,426)

     Brokerage fees

58,804

52,773

178,047

164,426

     Increase in cash surrender value of life insurance

59,876

55,375

173,626

166,125

     Other income

146,532

146,920

397,162

427,563

Total noninterest income

$

701,906

$

662,035

$

2,170,789

$

2,011,619

     Salaries and employee benefits


1,186,985


1,085,731


3,565,269


3,279,354

     Occupancy

279,721

240,762

804,954

742,231

     Data processing

293,212

168,148

870,462

702,699

     Deposit insurance premiums

14,000

28,000

62,000

78,000

     Professional fees

91,612

116,448

233,507

281,289

     Correspondent bank charges

33,868

30,950

97,101

93,655

     Other expense

323,212

274,729

968,578

901,730

Total noninterest expenses

$

2,222,610

$

1,944,768

$

6,601,871

$

6,078,958

Income before income tax expense

$

1,190,775

$

1,912,750

$

3,666,031

$

4,025,345

Income tax expense


159,182


597,861


505,127


1,121,207

Net Income

$

1,031,593

$

1,314,889

$

3,160,904

$

2,904,138


NORTHEAST INDIANA BANCORP

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



Three Months Ended
September 30,

Nine Months Ended
September 30,


2018

2017

2018

2017

Basic Earnings per common share

0.86

1.10

2.65

2.41

Dilutive Earnings per share

0.86

1.10

2.65

2.41

Net interest margin

3.56%

3.61%

3.59%

3.54%

Return on average assets

1.27%

1.74%

1.31%

1.28%

Return on average equity

11.22%

14.70%

11.68%

11.08%

Efficiency ratio

65.11%

60.63%

64.30%

63.96%

Average shares outstanding- primary

1,195,119

1,200,371

1,194,024

1,205,084

Average shares outstanding- diluted

1,195,286

1,200,538

1,195,724

1,206,284

Allowance for loan losses:





   Balance at beginning of period

$

2,808,485

$

2,660,491

$

2,746,523

$

3,149,092

   Charge-offs:





      One-to-four family

30,471

56,230

41,072

56,230

      Commercial real estate

-

-

-

530,692

      Land/land development

-

-

-

-

      Commercial

-

-

2,250

-

      Consumer

91,814

82,239

184,793

188,445

         Gross charge-offs

122,285

138,469

228,115

775,367

   Recoveries:





      One-to-four family

474

219

1,164

1,594

      Commercial real estate

-

685,196

66,755

685,580

      Land/land development

-

-

-

-

      Commercial

-

325,190

7,428

350,190

      Consumer

40,444

29,966

133,363

106,474

         Gross recoveries

40,918

1,040,541

208,710

1,143,838

   Net charge-offs / (recoveries)

81,367

(902,072)

19,405

(368,471)

   Additions charged to operations

-

(650,000)

-

(600,000)

   Balance at end of period

$

2,727,818

$

2,912,563

$

2,727,118

$

2,912,533






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

0.14%

(1.69%)

0.01%

(0.24%)






Nonperforming assets (000's)

At September 30,

At June 30,

At March 31,

At December 31,

   Loans:

2018

2018

2018

2017

      Non-accrual

$

2,566

$

2,290

$

2,032

$

2,261

      Past 90 days or more and still accruing

-

-

-

-

      Troubled debt restructured

292

294

296

236

         Total nonperforming loans

2,858

2,584

2,328

2,497

   Real estate owned

114

60

48

-

   Other repossessed assets

-

-

-

-

         Total nonperforming assets

$

2,972

$

2,644

$

2,376

$

2,497





   Nonperforming assets to total assets

0.91%

0.82%

0.75%

0.79%

   Nonperforming loans to total loans

1.23%

1.12%

1.01%

1.10%

   Allowance for loan losses to nonperforming loans

95.42%

108.73%

118.47%

110.01%

   Allowance for loan losses to net loans receivable

1.19%

1.23%

1.21%

1.22%






At September 30,


2018

2017






Stockholders' equity as a % of total assets

11.29%

11.96%


Book value per share

$

30.59

$

29.97


Common shares outstanding- EOP

1,206,327

1,214,879






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




 

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SOURCE Northeast Indiana Bancorp, Inc.

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