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

Company Release - 10/15/2020 11:43 AM ET

HUNTINGTON, Ind., Oct. 15, 2020 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income increased $285,000 or 21.0% to $1.65 million ($1.37 per diluted common share) for the Company's third quarter ended September 30, 2020 compared to net income of $1.36 million ($1.14 per diluted common share) for the third quarter ended September 30, 2019.  The current three months earnings represent a new record for the Company and equates to an annualized return on average assets (ROA) of 1.65% and a return on average equity (ROE) of 14.33%.  This compares to an annualized ROA of 1.53% and an annualized ROE of 13.31% for the three months ended September 30, 2019.

(PRNewsfoto/Northeast Indiana Bancorp, Inc.)

Net income for the nine months ended September 30, 2020 increased $583,000 or 16.5% to $4.12 million ($3.43 per diluted common share), compared to net income of $3.54 million ($2.96 per diluted common share) for the nine months ended September 30, 2019.  The current nine months earnings represent a new record for the Company and equates to an annualized ROA of 1.43% and an annualized ROE of 12.54%.  This compares to an annualized ROA of 1.34% and an annualized ROE of 12.01% for the nine months ended September 30, 2019.

First Federal Savings Bank has been a source of strength to small business clients and non-profits in Northeast Indiana during 2020.  The Bank participated in the SBA's Paycheck Protection Program ("PPP") and helped over 400 clients receive roughly $40.0 million in PPP funding.  The business banking team is now helping clients maneuver PPP Forgiveness applications.  We anticipate that process being completed during the fourth quarter of 2020 and into the first quarter of 2021. 

First Federal Savings Bank had continued strong 1-4 Family mortgage production during the quarter ended September 30, 2020.  The Bank originated mortgage loans in the amount of $24.6 million for the current quarter after record mortgage production of $33.3 million for the quarter ended June 30, 2020.  These efforts help our retail clients through lower monthly payments and lower interest over the life of their mortgage loans.  We anticipate mortgage production to remain at these elevated levels at least over the next three months if not longer.

First Federal Savings Bank has also worked with our borrowers on loan forbearance requests under the CARES Act.  We initially executed forbearance requests on roughly $36.0 million (13% of loan portfolio) in loan balances for an initial three-month period during the quarter ended June 30, 2020.  That figure declined significantly to roughly $8.0 million (3% of loan portfolio) that executed a second three-month forbearance request during the current quarter ended September 30, 2020.  Management anticipates a high majority of these clients moving back to amortizing status during the quarter ended December 31, 2020.

Net Loans Receivable have increased $18.86 million or 7.44% to $272.32 million at September 30, 2020 compared to $253.46 million at December 31, 2019.  Total Deposits have increased $40.53 million or 16.10% to $292.81 million at September 30, 2020 compared to $252.28 million at December 31, 2019.  Shareholder's equity increased $4.26 million or 10.31% to $45.58 million at September 30, 2020 compared to $41.32 million at December 31, 2019.  The book value of NIDB's stock was $37.66 per common share as of September 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 October 13, 2020 was $33.50 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,
2020

December  31,
2019

Interest-earning cash and cash equivalents

$

12,569,363

$

8,352,340

Noninterest earning cash and cash equivalents

6,670,671

2,863,471

   Total cash and cash equivalents

19,240,034

11,215,811

Interest- earning time deposits

3,681,000

3,681,000

Securities available for sale

70,635,203

65,001,858

Securities held to maturity

5,806,824

1,044,197

Loans held for sale

2,100,400

134,000

Loans receivable, net of allowance for loan loss September 30, 2020$3,781,578 and December 31, 2019$3,191,605

272,323,751

253,461,826

Accrued interest receivable

1,607,891

1,242,788

Premises and equipment

4,937,414

4,971,271

Investments in limited liability partnerships

1,903,334

2,128,334

Cash surrender value of life insurance

9,008,712

8,839,193

Other assets

1,675,232

2,203,348

    Total Assets

$

392,919,795

$

353,923,626

LIABILITIES AND STOCKHOLDERS' EQUITY



Non-interest bearing deposits

48,678,996

30,011,306

Interest bearing deposits

244,130,662

222,271,145

Borrowed Funds

51,229,782

57,237,450

Accrued interest payable and other liabilities

3,303,209

3,086,817

    Total Liabilities

347,342,649

312,606,718




Retained earnings – substantially restricted

45,577,146

41,316,908

    Total Liabilities and Shareholders' Equity

$

392,919,795

$

353,923,626


CONSOLIDATED STATEMENTS OF INCOME





Three Months Ended

Nine Months Ended


September 30,

September 30,


2020

2019

2020

2019

Total interest income

$

3,734,822

$

4,097,681

$

11,333,967

$

12,107,235

Total interest expense


694,908


1,104,242


2,421,893


3,315,199

    Net interest income

$

3,039,914

$

2,993,439

$

8,912,074

$

8,792,036

Provision for loan losses


120,000


200,000


460,000


350,000

  Net interest income after provision for loan losses

$

2,919,914

$

2,793,439

$

8,452,074

$

8,442,036

     Service charges on deposit accounts


148,651


190,919


469,371


539,822

     Interchange Fees


122,189


160,982


419,398


443,850

     Net gain (loss) on sale of securities


-


(6,510)


-


91,526

     Net gain on sale of loans

799,857

385,842

1,841,861

648,112

     Net gain (loss) on sale of repossessed assets

-

-

(16,535)

7,608

     Brokerage fees

45,849

41,914

142,132

164,969

     Increase in cash surrender value of life insurance

56,506

56,625

169,519

169,125

     Other income

144,977

252,859

185,528

535,420

Total noninterest income

$

1,318,029

$

1,082,631

$

3,211,274

$

2,600,432

     Salaries and employee benefits


1,242,653


1,279,760


3,723,935


3,877,132

     Occupancy

256,947

291,719

769,947

853,257

     Data processing

223,506

245,498

825,688

719,020

     Deposit insurance premiums

32,500

-

78,000

24,000

     Professional fees

82,144

53,695

203,174

287,255

     Advertising / marketing fees

65,120

40,920

148,869

189,060

     Correspondent bank charges

31,299

35,306

90,402

109,859

     Other expense

281,095

300,486

847,170

843,493

Total noninterest expenses

$

2,215,264

$

2,247,384

$

6,687,185

$

6,903,076

Income before income tax expense

$

2,022,679

$

1,628,686

$

4,976,163

$

4,139,392

Income tax expense


375,565


267,005


852,482


599,203

Net Income

$

1,647,114

$

1,361,681

$

4,123,681

$

3,540,189



Three Months Ended

September 30,

Nine Months Ended

September 30,


2020

2019

2020

2019

Basic Earnings per common share

1.37

1.14

3.43

2.96

Dilutive Earnings per share

1.37

1.14

3.43

2.96

Net interest margin

3.24%

3.57%

3.28%

3.55%

Return on average assets

1.65%

1.53%

1.43%

1.34%

Return on average equity

14.33%

13.31%

12.54%

12.01%

Efficiency ratio

50.83%

55.14%

55.16%

60.59%

Average shares outstanding- primary

1,201,419

1,198,419

1,203,856

1,197,226

Average shares outstanding- diluted

1,201,586

1,198,586

1,205,523

1,197,926

Allowance for loan losses:





   Balance at beginning of period

$

3,664,820

$

2,984,907

$

3,191,605

$

2,856,319

   Charge-offs:





      One-to-four family

-

41,961

-

41,961

      Commercial real estate

-

-

17,951

73,705

      Land/land development

-

-

-

-

      Commercial

-

-

-

25,000

      Consumer

39,016

67,622

84,143

153,031

         Gross charge-offs

39,016

109,583

102,094

293,698

   Recoveries:





      One-to-four family

1,417

936

2,831

2,660

      Commercial real estate

-

-

-

64,040

      Land/land development

-

-

-

-

      Commercial

-

1,581

105,919

23,649

      Consumer

34,357

16,832

123,318

91,703

         Gross recoveries

35,774

19,349

232,067

182,052

   Net charge-offs

3,242

90,234

(129,973)

111,646

   Additions charged to operations

120,000

200,000

460,000

350,000

   Balance at end of period

$

3,781,578

$

3,094,673

$

3,781,578

$

3,094,673






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

0.00%

0.14%

(0.06%)

0.06%






Nonperforming assets (000's)

At September 30,

At June 30,

     At March 31,

At December 31,

   Loans:

2020

2020

2020

2019

      Non-accrual

$

5,501

$

6,511

$

7,119

$

6,173

      Past 90 days or more and still accruing

-

-

-

-

      Troubled debt restructured

381

448

465

468

         Total nonperforming loans

5,882

6,959

7,584

6,641

   Real estate owned

5

5

59

262

   Other repossessed assets

-

-

-

-

         Total nonperforming assets

$

5,887

$

6,964

$

7,643

$

6,903




   Nonperforming assets to total assets

1.50%

1.42%

2.14%

1.95%

   Nonperforming loans to total loans

2.13%

2.48%

2.97%

2.59%

   Allowance for loan losses to nonperforming loans

64.30%

52.66%

45.41%

48.07%

   Allowance for loan losses to net loans receivable

1.39%

1.32%

1.37%

1.26%








                 At September 30,


2020

2019








Stockholders' equity as a % of total assets

11.60%

11.76%



Book value per share

$

37.66

$

34.28



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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