Northeast Indiana Bancorp, Inc. Announces Increased Quarterly Earnings

Northeast Indiana Bancorp, Inc. Announces Increased Quarterly Earnings

HUNTINGTON, Ind., Oct. 12, 2017 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income increased $505,000 or 62.3% to $1.31 million ($1.10 per diluted common share) for the Company's third quarter ended September 30, 2017 compared to net income of $810,000 ($0.67 per diluted common share) for the third quarter ended September 30, 2016.  The current three months earnings were impacted by a negative Loan Loss Provision that increased earnings roughly $400,000, net of taxes.  This entry was made possible due to two large commercial loan recoveries that were receipted during the quarter.  Core earnings for the three months ended September 30, 2017 would have been roughly $915,000 without the negative Loan Loss Provision entry.  The current three months earnings equates to an annualized return on average assets (ROA) of 1.74% and a return on average equity (ROE) of 14.70% compared to an annualized ROA of 1.09% and an ROE of 9.38% for the three months ended September 30, 2016.

Net income for the nine months ended September 30, 2017 increased $134,000 or 4.9% to $2.90 million ($2.41 per diluted common share), compared to net income of $2.77 million ($2.31 per diluted common share) for the nine months ended September 30, 2016.  The current nine months earnings were also impacted by the negative Loan Loss Provision mentioned above.  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 1.28% and an ROE of 11.08% compared to an annualized ROA of 1.26% and an annualized ROE of 10.92% for the nine months ended September 30, 2016.   

Net Loans Receivable have increased $15.0 million or 7.6% to $211.8 million at September 30, 2017 compared to $196.8 million at December 31, 2016.  Non-performing Assets have declined $2.1 million or 43.8% to $2.7 million at September 30, 2017 compared to $4.8 million at December 31, 2016.  Shareholder's equity was $36.4 million at September 30, 2017 compared to $33.6 million at December 31, 2016.  The book value of NIDB's stock was $29.97 per common share as of September 30, 2017.  The number of outstanding common shares was 1,214,879 as of the same date.  The last reported trade of the stock on October 10, 2017 was $33.70 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, 2017

December 31,2016

Interest-earning cash and cash equivalents

$

7,625,797

$

4,591,440

Noninterest earning cash and cash equivalents

3,358,782

2,493,983

   Total cash and cash equivalents

10,984,579

7,085,423

Interest- earning time deposits

1,470,000

9,082,982

Securities available for sale

59,979,789

66,171,764

Securities held to maturity

1,730,352

2,582,029

Loans held for sale

261,250

109,000

Loans receivable, net of allowance for loan loss September 30, 2017 $2,912,563 and December 31, 2016 $3,144,092

 

211,816,388

 

196,781,434

Accrued interest receivable

1,098,017

1,161,779

Premises and equipment

4,116,284

4,060,931

Investments in limited liability partnerships

2,758,333

2,908,333

Cash surrender value of life insurance

8,326,818

8,160,693

Other assets

1,859,044

2,855,115

    Total Assets

$

304,400,854

$

300,959,483

LIABILITIES AND STOCKHOLDERS' EQUITY



Non-interest bearing deposits

24,199,642

24,218,658

Interest bearing deposits

191,474,551

194,192,875

Borrowed Funds

47,646,577

42,650,461

Accrued interest payable and other liabilities

4,664,961

6,259,318

    Total Liabilities

267,985,731

267,321,312




Retained earnings – substantially restricted

36,415,123

33,638,171

    Total Liabilities and Shareholders' Equity

$

304,400,854

$

300,959,483


CONSOLIDATED STATEMENTS OF INCOME





Three Months Ended

Nine Months Ended


September 30,

September 30,


2017

2016

2017

2016

Total interest income

$

3,096,331

$

2,859,937

$

9,018,361

$

8,504,280

Total interest expense


550,848


426,473


1,525,677


1,250,012

    Net interest income

$

2,545,483

$

2,433,464

$

7,492,684

$

7,254,268

Provision for loan losses


(650,000)


-


(600,000)


-

  Net interest income after provision for loan losses

$

3,195,483

$

2,433,464

$

8,092,684

$

7,254,268

     Service charges on deposit accounts


162,963


176,046


450,672


485,009

     Interchange Fees


139,549


116,571


410,029


345,712

     Net gain (loss) on sale of securities


785


2,900


(6,931)


1,442

     Net gain on sale of loans


126,705


164,428


471,475


892,095

    Net gain (loss) on sale of repossessed assets


1,372


-


(6,426)


(12,759)

     Brokerage fees


52,773


60,448


164,426


211,486

     Increase in cash surrendervalue of life insurance


55,375


54,013


166,125


164,438

     Other income


122,513


63,254


362,249


349,429

Total noninterest income

$

662,035

$

637,660

$

2,011,619

$

2,436,852

     Salaries and employee benefits


1,085,731


1,039,429


3,279,354


3,056,179

     Occupancy


240,762


271,519


742,231


792,993

     Data processing


168,148


229,659


702,699


632,599

     Deposit insurance premiums


28,000


35,000


78,000


125,000

     Professional fees


116,448


57,676


281,289


194,217

     Correspondent bank charges


30,950


33,980


93,655


103,999

     Other expense


274,729


271,843


901,730


828,013

Total noninterest expenses

$

1,944,768

$

1,939,106

$

6,078,958

$

5,733,000

Income before income tax expense

$

1,912,750

$

1,132,018

$

4,025,345

$

3,958,120

Income tax expense


597,861


321,805


1,121,207


1,188,338

Net Income

$

1,314,889

$

810,213

$

2,904,138

$

2,769,782



Three Months Ended

September 30,

Nine Months Ended

September 30,


2017

2016

2017

2016

Basic Earnings per common share

1.10

0.67

2.41

2.31

Dilutive Earnings per share

1.10

0.67

2.41

2.31

Net interest margin

3.61%

3.52%

3.54%

3.52%

Return on average assets

1.74%

1.09%

1.28%

1.26%

Return on average equity

14.70%

9.38%

11.08%

10.92%

Efficiency ratio

60.63%

63.14%

63.96%

59.16%

Average shares outstanding- primary

1,200,371

1,204,441

1,205,084

1,200,083

Average shares outstanding- diluted

1,200,538

1,204,441

1,206,284

1,200,116

Allowance for loan losses:




   Balance at beginning of period

$

2,660,491

$

3,231,811

$

3,149,092

$

3,196,953

   Charge-offs:




      One-to-four family

56,230

18,944

56,230

25,781

      Commercial real estate

-

-

530,692

-

      Land/land development

-

-

-

-

      Commercial

-

11,006

-

11,482

      Consumer

82,239

94,883

188,445

190,231

         Gross charge-offs

138,469

124,833

775,367

227,494

   Recoveries:





      One-to-four family

219

11,369

1,594

22,078

      Commercial real estate

685,196

-

685,580

-

      Land/land development

-

-

-

-

      Commercial

325,190

-

350,190

13,129

      Consumer

29,966

31,454

106,474

145,135

         Gross recoveries

1,040,541

42,823

1,143,838

180,342

   Net charge-offs

(902,072)

82,010

(368,471)

47,152

   Additions charged to operations

(650,000)

-

(600,000)

-

   Balance at end of period

$

2,912,563

$

3,149,801

$

2,912,533

$

3,149,801





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

(1.69%)

0.17%

(0.24%)

0.03%





Nonperforming assets (000's)

At September 30,

At June 30,

 At March 31,

At December 31,

   Loans:

2017

2017

2017

2016

      Non-accrual

$

2,260

$

2,904

$

2,406

$

3,595

      Past 90 days or more and still accruing

-

-

-

-

      Troubled debt restructured

425

356

1,084

1,232

         Total nonperforming loans

2,685

3,260

3,490

4,827

   Real estate owned

-

9

9

69

   Other repossessed assets

-

-

-

-

         Total nonperforming assets

$

2,685

$

3,269

$

3,499

$

4,893



   Nonperforming assets to total assets

0.88%


1.08%

1.15%

1.63%

   Nonperforming loans to total loans

1.25%


1.57%

1.70%

2.41%

   Allowance for loan losses to nonperforming loans

108.47%


81.60%

90.20%

65.13%

   Allowance for loan losses to net loans receivable

1.36%


1.30%

1.55%

1.60%






At September 30,


2017

2016





Stockholders' equity as a % of total assets

11.96%

11.71%


Book value per share

$

29.97

$

28.73


Common shares outstanding- EOP

1,214,879

1,207,379





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









 


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SOURCE Northeast Indiana Bancorp, Inc.

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