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Northeast Indiana Bancorp, Inc. Announces Record Year To Date And Record Quarterly Earnings

Company Release - 7/14/2020 5:32 PM ET

HUNTINGTON, Ind., July 14, 2020 /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, 2020 increased by $298,000 or 13.7% to $2.48 million ($2.06 per diluted common share) when compared to net income of $2.18 million ($1.82 per diluted common share) for the six months ended June 30, 2019.  The current six months earnings equate to an annualized ROA of 1.31% and a ROE of 11.58% compared to an annualized ROA of 1.25% and an annualized ROE of 11.32% for the six months ended June 30, 2019.  The current earnings level represents Record net income for any six-month period ended June 30 in the Company's history.   

(PRNewsfoto/Northeast Indiana Bancorp, Inc.)

Net income also increased by $323,000 or 28.9% to $1.44 million ($1.20 per diluted common share) for the Company's second quarter ended June 30, 2020 when compared to net income of $1.12 million ($0.94 per diluted common share) for the second quarter ended June 30, 2019.  The current three months earnings equate to an annualized return on average assets (ROA) of 1.44% and a return on average equity (ROE) of 13.24% compared to an annualized ROA of 1.26% and a ROE of 11.45% for the three months ended June 30, 2019.  The current quarterly earnings level represents Record net income for any quarterly period in the Company's history. 

Total Assets increased $51.2 million or 14.5% to $405.1 million at June 30, 2020 compared to $353.9 million at December 31, 2019.  Net loans increased $23.2 million or 9.1% to $276.6 million at June 30, 2020 compared to $253.5 million at December 31, 2019.  Total deposits increased $48.9 million or 19.4% to $301.2 million at June 30, 2020 compared to $252.3 million at December 31, 2019.  Shareholder's equity increased $2.9 million or 6.9% to $44.2 million at June 30, 2020 compared to $41.3 million at December 31, 2019.  The book value of NIDB's stock was $36.49 per common share as of June 30, 2020.  The number of outstanding common shares was 1,210,327 as of the same date.  The last reported trade of the stock on July 13, 2020 was $32.00 per common share.

First Federal Savings Bank supported small business clients and non-profits in Northeast Indiana, utilizing the SBA's Paycheck Protection Program ("PPP"), during the quarter ended June 30, 2020.  Those efforts resulted in 400 small business or non-profit clients receiving $39.2 million in PPP funding.  These efforts helped to support or retain 6,000 jobs in the communities we serve. 

First Federal Savings Bank also had Record 1-4 family mortgage production during the quarter ended June 30, 2020.  We originated mortgage loans in the amount of $33.3 million in total for our retail clients which should help households with lower payments or lower interest over the life of their mortgage loans.  We anticipate mortgage production continuing to remain at these elevated levels at least over the next three months if not longer.    

Michael S. Zahn, President and CEO, commented "in addition to our Record financial performance, I'm especially proud of our team's efforts to serve those in need in these unprecedented times.  As an essential business, we never shut down or slowed down over the past few months.  By providing small businesses and non-profits a financial lifeline through the Paycheck Protection Program and working with homeowners to ease their mortgage burdens, First Federal Savings Bank has shown the importance of Community Banking."

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,
2020

December 31, 
2019

Interest-earning cash and cash equivalents

$

28,701,503

$

8,352,340

Noninterest earning cash and cash equivalents

4,997,320

2,863,471

   Total cash and cash equivalents

33,698,823

11,215,811

Interest-earning time deposits

3,681,000

3,681,000

Securities available for sale

67,210,234

65,001,858

Securities held to maturity

2,033,923

1,044,197

Loans held for sale

2,564,543

134,000

Loans receivable, net of allowance for loan loss June 30, 2020 $3,664,820 and December 31, 2019$3,191,605

276,620,407

253,461,826

Accrued interest receivable

1,643,735

1,242,788

Premises and equipment

4,981,996

4,971,271

Investments in limited liability partnerships

1,978,334

2,128,334

Cash surrender value of life insurance

8,952,206

8,839,193

Other assets

1,741,766

2,203,348

    Total Assets

$

405,106,967

$

353,923,626

LIABILITIES AND STOCKHOLDERS' EQUITY



Non-interest bearing deposits

47,989,030

30,011,306

Interest bearing deposits

253,188,490

222,271,145

Borrowed Funds

56,379,114

57,237,450

Accrued interest payable and other liabilities

3,380,197

3,086,817

    Total Liabilities

360,936,831

312,606,718




Retained earnings – substantially restricted

44,170,136

41,316,908

    Total Liabilities and Shareholder's Equity

$

405,106,967

$

353,923,626

 


CONSOLIDATED STATEMENTS OF INCOME





       Three Months Ended

        Six Months Ended


      June 30,

      June 30,


2020

2019

2020

2019

Total interest income

$

3,826,584

$

4,094,696

$

7,599,147

$

8,009,553

Total interest expense


782,621


1,158,262


1,726,985


2,210,956

   Net interest income

$

3,043,963

$

2,936,434

$

5,872,162

$

5,798,597

Provision for loan losses


120,000


75,000


340,000


150,000

  Net interest income after provision for loan losses

$

2,923,963

$

2,861,434

$

5,532,162

$

5,648,597

    Service charges on deposit accounts


134,682


176,845


320,719


348,902

    Interchange Fees

150,302

151,683

297,208

282,867

    Net gain (loss) on sale of securities

-

98,036

-

98,036

    Net gain on sale of loans

764,833

117,351

1,042,004

262,269

    Net gain (loss) on sale of repossessed assets

1,651

-

(16,535)

7,608

    Brokerage fees

39,524

59,708

96,284

123,055

    Increase in cash surrender value of life insurance

55,663

55,500

113,013

112,500

    Other income

(103,838)

111,545

40,550

282,561

Total noninterest income

$

1,042,817

$

770,668

$

1,893,243

$

1,517,798

    Salaries and employee benefits


1,185,091


1,311,045


2,481,280


2,597,374

    Occupancy

267,496

276,878

513,000

561,538

    Data processing

332,081

225,734

602,183

473,522

    Deposit insurance premiums

25,500

24,000

45,500

24,000

    Professional fees

56,595

123,483

121,030

233,559

    Advertising and Marketing Fees

28,146

64,755

83,749

148,140

    Correspondent bank charges

26,370

37,237

59,103

74,553

    Other expense

296,399

271,765

566,076

543,003

Total noninterest expenses

$

2,217,678

$

2,334,897

$

4,471,921

$

4,655,689

  Income before income tax expenses

$

1,749,102

$

1,297,205

$

2,953,484

$

2,510,706

Income tax expense


305,834


176,550


476,917


332,198

Net Income

$

1,443,268

$

1,120,655

$

2,476,567

$

2,178,508




        Three Months Ended
        June 30,

        Six Months Ended
        June 30,


2020

2019

2020

2019

Basic Earnings per common share

1.20

0.94

2.06

1.82

Dilutive Earnings per share

1.20

0.94

2.06

1.82

Net interest margin

3.22%

3.51%

3.31%

3.55%

Return on average assets

1.44%

1.26%

1.31%

1.25%

Return on average equity

13.24%

11.45%

11.58%

11.32%

Efficiency ratio

54.26%

62.98%

57.59%

63.63%

Average shares outstanding - primary

1,200,327

1,197,327

1,203,066

1,196,619

Average shares outstanding - diluted

1,200,327

1,197,327

1,203,816

1,197,419




Allowance for loan losses:





   Balance at beginning of period

$

3,443,586

$

2,823,219

$

3,191,605

$

2,856,319

   Charge-offs:





      One-to-four family

-

-

-

-

      Commercial real estate

-

-

17,952

73,705

      Land/land development

-

-

-

-

      Commercial

-

-

-

25,000

      Consumer

11,684

20,915

45,127

85,409

         Gross charge-offs

11,684

20,915

63,079

184,114

   Recoveries:





      One-to-four family

511

803

1,414

1,724

      Commercial real estate

-

64,040

-

64,040

      Land/land development

-

-

-

-

      Commercial

51,919

22,068

105,919

22,068

      Consumer

60,488

20,692

88,961

74,870

         Gross recoveries

112,918

107,603

196,294

162,702

   Net charge-offs/(recoveries)

(101,234)

(86,688)

(133,215)

21,412

   Additions charged to operations

120,000

75,000

340,000

150,000

   Balance at end of period

$

3,664,820

$

2,984,907

$

3,664,820

$

2,984,907






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

(0.14%)

(0.13%)

(0.10%)

0.02%






Nonperforming assets (000's)

At June 30,

At March 31,

At December 31,



   Loans:

2020

2020

2019



      Non-accrual

$

6,511

$

7,119

$

6,173


      Past 90 days or more and still accruing

-

-


-

      Troubled debt restructured

448

465


468

         Total nonperforming loans

6,959

7,584


6,641

   Real estate owned

5

59


262

   Other repossessed assets

-

-


-

         Total nonperforming assets

$

6,964

$

7,643

$

6,903





   Nonperforming assets to total assets

1.72%

2.14%


1.95%

   Nonperforming loans to total loans

2.48%

2.97%


2.59%

   Allowance for loan losses to nonperforming loans

52.66%

45.41%


48.07%

   Allowance for loan losses to net loans receivable

1.32%

1.37%


1.26%





                     At June 30,


2020

2019







Stockholders' equity as a % of total assets

10.90%

11.22%



Book value per share

$

36.49

$

33.34



Common shares outstanding- EOP

1,210,327

1,206,327




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

 

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SOURCE Northeast Indiana Bancorp, Inc.

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