Northeast Indiana Bancorp, Inc. Announces Sharp Increase In First Quarter Earnings

HUNTINGTON, Ind., April 24, 2014 /PRNewswire/ — Northeast Indiana Bancorp,
Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has
announced that net income increased $293,000 or 54% to $840,000 ($0.69 per
diluted common share) for the first quarter ended March 31, 2014 compared to net
income of $547,000 ($0.44 per diluted common share) for the first quarter ended
March 31, 2013. The current three months earnings equate to an annualized return
on average assets (ROA) of 1.24% and a return on average equity (ROE) of 11.91%
compared to an ROA of 0.82% and an ROE of 7.79% for the prior year quarter ended
March 31, 2013.

Commenting on the financial results, First Federal Savings Bank CEO Michael S.
Zahn stated, “We are extremely pleased with our recent financial performance. A
combination of factors has led to our success. The most important factor is the
hard work and dedication of our employees. We’ve been able to expand our margins
while controlling overhead. In addition, we’ve been able to serve our business
customers, which was demonstrated by First Federal Savings Bank being listed as
the 3rd largest SBA lender in the state of Indiana based on dollar volume as of
March 31, 2014.”

Shareholders’ equity increased to $28.5 million at March 31, 2014 compared to
$27.8 million at December 31, 2013. The book value of NIDB stock was $23.42 per
common share as of March 31, 2014. The number of outstanding common shares was
1,216,286. The Company also repurchased 13,160 shares for treasury during the
quarter ended March 31, 2014 under a previously announced stock repurchase
program. The last reported trade of the stock on April 14, 2014 was $22.00 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.com.

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 March 31, December 31,
2013
2014
—-

Interest-earning cash and cash equivalents $7,088,098 $5,476,740

Noninterest earning cash and cash equivalents 3,092,889 2,481,418
——— ———

Total cash and cash equivalents 10,180,987 7,958,158

Interest-earning time deposits 7,624,633 7,135,000

Securities available for sale 80,437,694 86,295,635

Securities held to maturity 1,437,933 1,466,003

Loans held for sale 416,450 142,500

Loans receivable, net of allowance for loan loss March 31, 2014 $3,522,767 and December 31, 2013
$3,846,001
158,048,785 150,790,666

Accrued interest receivable 948,422 932,105

Premises and equipment 3,061,653 2,929,520

Cash surrender value of life insurance 7,554,468 7,497,893

Other assets 2,549,382 3,410,137

Total Assets $272,260,407 $268,557,617
========== ============

LIABILITIES AND STOCKHOLDERS’ EQUITY

Non-interest bearing deposits 19,792,708 18,196,448

Interest bearing deposits 193,372,353 190,686,051

Borrowed Funds 27,513,866 28,755,460

Accrued interest payable and other liabilities 3,097,476 3,109,814
——— ———

Total Liabilities 243,776,403 240,747,773
———– ———–

Retained earnings – substantially restricted 28,484,004 27,809,844

Total Liabilities and Shareholders’ Equity $272,260,407 $268,557,617
========== ============

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

March 31,

2014 2013
—- —-

Total interest income $2,627,946 $2,467,508

Total interest expense 313,707 373,199
———————- ——- ——-

Net interest income $2,314,239 $2,094,309
——————- ———- ———-

Provision for loan losses 225,000 300,000

Net interest income after provision for loan losses $2,089,239 $1,794,309

Service charges on deposit accounts 116,845 122,640

Net loss on sale of securities (7,211) (618)

Net gain on sale of loans 437,334 179,194

Net gain on sale of repossessed assets 21,690 18,346

Brokerage fees 123,180 114,297

Increase in cash surrender value of life insurance 56,575 61,513

Other income 170,980 165,184
————

Total noninterest income $919,393 $660,556
———————— ——– ——–

Salaries and employee benefits 927,244 885,154

Occupancy 294,625 274,347

Data processing 201,003 196,378

Deposit insurance premiums 60,000 60,000

Professional fees 103,166 70,474

Correspondent bank charges 28,931 29,771

Other expense 202,770 213,045
————- ——- ——-

Total noninterest expenses $1,817,739 $1,729,169
————————–

Income before income tax expenses $1,190,893 $725,696
——————————— ———- ——–

Income tax expense 350,751 178,568

Net Income $840,142 $547,128
========== ======== ========

NORTHEAST INDIANA BANCORP

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Three Months Ended
March 31,

2014 2013
—- —-

Basic Earnings per common share 0.69 0.44

Dilutive Earnings per share 0.69 0.44

Net interest margin 3.63% 3.36%

Return on average assets 1.24% 0.82%

Return on average equity 11.91% 7.79%

Efficiency ratio 56.21% 62.77%

Average shares outstanding- primary 1,223,509 1,235,720

Average shares outstanding- diluted 1,224,127 1,235,978
———————————– ——— ———

Allowance for loan losses:

Balance at beginning of period $3,355,534 $3,846,021

Charge-offs:

One-to-four family 17,547 11,346

Commercial real estate – –

Land/land development – –

Commercial – –

Consumer 56,900 80,104
—— ——

Gross charge-offs 74,447 91,450
—— ——

Recoveries:

One-to-four family 1,576 1,474

Commercial real estate – 72,249

Land/land development – –

Commercial – 25,025

Consumer 15,104 26,214
—— ——

Gross recoveries 16,680 124,962
—— ——-

Net charge-offs / (recoveries) 57,767 (33,512)

Additions charged to operations 225,000 300,000
——- ——-

Balance at end of period $3,522,767 $4,179,533
======== ==========

Net loan charge-offs / (recoveries) to average loans (1) 0.14% (0.09%)
——————————————————— —- ——

Nonperforming assets (000’s) At March
31, At December 31,

Loans: 2014 2013
—- —-

Non-accrual $4,742 $5,443

Past 90 days or more and still accruing – –

Troubled debt restructured 1,334 1,398
—– —–

Total nonperforming loans 6,076 6,841

Real estate owned 256 508

Other repossessed assets – 20
— —

Total nonperforming assets $6,332 $7,369
====== ======

Nonperforming assets to total assets 2.33% 2.74%

Nonperforming loans to total loans 3.76% 4.44%

Allowance for loan losses to nonperforming loans 57.98% 49.06%

Allowance for loan losses to net loans receivable 2.23% 2.23%

At March 31,

2014 2013
—- —-

Stockholders’ equity as a % of total assets 10.46% 10.53%

Book value per share $23.42 $22.64

Common shares outstanding- EOP 1,216,286 1,239,946

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

SOURCE Northeast Indiana Bancorp, Inc.

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