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Northeast Indiana Bancorp, Inc. Announces Record Annual Earnings And Quarterly Earnings

HUNTINGTON, Ind., Feb. 1, 2019 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB:  NIDB), the parent company of First Federal Savings Bank, today announced earnings increased $754,000 or 22.1% to $4.2 million ($3.49 per diluted common share) for the full year 2018 when compared to full year 2017 earnings of $3.4 million ($2.84 per diluted common share).  2018 annual earnings represent the highest earnings level ever recorded for the Company.  The full year 2018 earnings equates to a return on average assets of 1.28% and a return on average equity of 11.48% compared to an ROA of 1.12% and an ROE of 9.66% for the full year 2017.

(PRNewsfoto/Northeast Indiana Bancorp, Inc.)

Total assets increased $20.0 million or 6.4% to $334.2 million at December 31, 2018 compared to December 31, 2017 assets of $314.2 million.  Total net loans increased $15.0 million or 6.6% to $240.1 million at December 31, 2018 from $225.1 million at December 31, 2017.  Total deposits increased $21.2 million or 10.0% to $233.4 million at December 31, 2018 from $212.2 million at December 31, 2017. 

The Company also announced quarterly earnings for the three months ended December 31, 2018 increased by $497,000 or 97.8% to $1.0 million ($0.84 per diluted common share) when compared to earnings for the three months ended December 31, 2017 of $509,000 ($0.42 per diluted common shares).  Fourth quarter 2017 earnings were negatively impacted by a $328,000 increase in tax expense from a non-cash impairment to our Deferred Tax Assets ("DTA's").  The current quarter's earnings equates to an ROA of 1.21% and an ROE of 10.90% compared to an ROA of 0.66% and an ROE of 5.58% for the prior year quarter ended December 31, 2017.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "2018 was another record earnings year for First Federal Savings Bank.  We've maintained our consistent loan and deposit growth while continuing to invest in the talent and technology that we need for the future.  For the fourth year in a row, we have rewarded our shareholders with a special dividend in addition to raising our normal dividend for the 24th consecutive year."

The Company paid out cash dividends of $2.1 million to shareholders during the year ended December 31, 2018 including roughly $905,000 from a Special Cash Dividend ($0.75 per common share) that was paid to shareholders in December 2018 for the 4th year in a row of Special Cash Dividends.  The book value of NIDB stock was $30.95 per common share as of December 31, 2018.  The Company's stock closed at $37.00 per common share on December 31, 2018, an increase of $1.85 or 5.3% compared to the closing stock price of $35.15 per common share on December 31, 2017.

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

 

    December 31,

           2018

December  31,
2017


Interest-earning cash and cash equivalents

$

3,605,610

$

3,954,186


Noninterest earning cash and cash equivalents

2,685,698

3,559,790


   Total cash and cash equivalents

6,291,308

7,513,976


Securities available for sale

63,898,265

58,583,396


Interest-earning deposits in financial institutions

3,436,000

1,715,000


Securities held to maturity

1,233,843

1,728,199


Loans held for sale

453,100

1,064,300


Loans receivable, net of allowance for loan loss Dec. 31, 2018 $2,856,319 and Dec. 31, 2017 $2,746,523

240,075,827

225,132,535


Accrued interest receivable

1,314,404

1,246,930


Premises and equipment

3,988,192

4,148,328


Investments in limited liability partnerships

2,428,334

2,708,333


Cash surrender value of life insurance

8,613,693

8,382,193


Other assets

2,477,748

1,952,615


    Total Assets

$

334,210,714

$

314,175,805


LIABILITIES AND STOCKHOLDERS' EQUITY




Non-interest bearing deposits

26,751,611

25,242,627


Interest bearing deposits

206,618,957

186,916,030


Borrowed Funds

59,763,974

61,199,066


Accrued interest payable and other liabilities

3,735,912

5,098,911


    Total Liabilities

296,870,454

278,456,634






Retained earnings – substantially restricted

37,340,260

35,719,171


    Total Liabilities and Shareholders' Equity

$

334,210,714

$

314,175,805




CONSOLIDATED STATEMENTS OF INCOME







Three Months Ended

Twelve Months Ended



December 31,

December 31,



2018

2017

2018

2017


Total interest income

$

3,762,659

$

3,205,529

$

14,142,981

$

12,223,894


Total interest expense


922,895


603,719


3,206,100


2,129,396


    Net interest income

$

2,839,764

$

2,601,810

$

10,936,881

$

10,094,498


Provision for loan losses


175,000


-


175,000


(600,000)


  Net interest income after provision for loan losses

$

2,664,764

$

2,601,810

$

10,761,881

$

10,694,498


     Service charges on deposit accounts


167,744


183,533


658,805


634,205


     Interchange fees


136,009


120,714


531,280


465,429


     Net gain (loss) on sale of securities


(157,931)


-


(162,879)


(6,931)


     Net gain on sale of loans

499,684

90,664

1,045,103

562,139


     Net gain (loss) on sale of repossessed assets

(3,302)

6,974

(8,153)

548


     Brokerage fees

38,956

51,079

217,003

215,505


     Increase in cash surrender value of life insurance

57,876

55,375

231,500

221,500


     Other income

177,850

142,158

575,012

569,720


Total noninterest income

$

916,886

$

650,497

$

3,087,671

$

2,662,115


     Salaries and employee benefits


1,233,054


1,119,902


4,798,322


4,399,254


     Occupancy

257,137

250,523

1,062,090

992,754


     Data processing

302,361

269,258

1,172,825

971,955


     Deposit insurance premiums

24,000

24,000

86,000

102,000


     Professional fees

193,281

73,794

426,787

355,083


     Advertising and marketing

80,673

74,918

247,614

218,132


     Correspondent bank charges

34,124

39,186

131,225

132,841


     Other expense

279,916

265,275

1,081,554

1,023,798


Total noninterest expenses

$

2,404,546

$

2,116,856

$

9,006,417

$

8,195,817


  Income before income tax expense

$

1,177,104

$

1,135,451

$

4,843,135

$

5,160,796


Income tax expense


171,151


626,847


676,278


1,748,054


Net Income

$

1,005,953

$

508,604

$

4,166,857

$

3,412,742


























 

NORTHEAST INDIANA BANCORP


CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)



Three Months Ended

December 31,

Twelve Months Ended

December 31,



2018

2017

2018

2017


Basic Earnings per common share

0.84

0.42

3.49

2.84


Dilutive Earnings per share

0.84

0.42

3.49

2.84


Net interest margin

3.64%

3.61%

3.60%

3.56%


Return on average assets

1.21%

0.66%

1.28%

1.12%


Return on average equity

10.90%

5.58%

11.48%

9.66%


Efficiency Ratio

64.01%

65.09%

64.22%

64.25%


Average shares outstanding - primary

1,195,527

1,200,779

1,194,403

1,200,013


Average shares outstanding - diluted

1,195,527

1,200,779

1,195,678

1,200,913






Allowance for loan losses:






   Balance at beginning of period

$

2,727,118

$

2,912,563

$

2,746,523

$

3,144,092





   Charge-offs:






      One-to-four family

-

38,599

41,072

94,829


      Commercial real estate

-

-

-

530,692


      Land/land development

-

-

-

-


      Commercial

-

117,370

2,250

117,370


      Consumer

86,100

106,981

270,893

295,426


         Gross charge-offs

86,100

262,950

314,215

1,038,317


   Recoveries:






      One-to-four family

1,339

336

2,503

1,930


      Commercial real estate

-

6,575

66,754

692,155


      Land/land development

-

-

-

-


      Commercial

-

40,558

7,428

390,748


      Consumer

38,962

49,441

172,325

155,915


         Gross recoveries

40,301

96,910

249,011

1,240,748


   Net charge-offs

45,799

166,040

65,205

202,429


   Additions charged to operations

175,000

-

175,000

(600,000)


   Balance at end of period

$

2,856,319

$

2,746,523

$

2,856,319

$

2,746,523














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

0.08%

0.30%

0.03%

(0.10%)














Nonperforming assets (000's)

At December 31,

At September 30,

    At June 30,

At December 31,


   Loans:

2018

2018

2018

2017


      Non-accrual

$

2,674

$

2,566

$

2,290

$

2,261


      Past 90 days or more and still accruing

-

-

-

-


      Troubled debt restructured

170

292

294

236


         Total nonperforming loans

2,844

2,858

2,584

2,497


   Real estate owned

33

114

60

-


   Other repossessed assets

-

-

-

-


         Total nonperforming assets

$

2,877

$

2,972

$

2,644

$

2,497






   Nonperforming assets to total assets


0.86%


0.91%

0.82%

0.79%


   Nonperforming loans to total loans

1.17%


1.23%

1.12%

1.10%


   Allowance for loan losses to nonperforming loans

100.42%


95.42%

108.73%

110.01%


   Allowance for loan losses to total receivable

1.19%


1.19%

1.23%

1.22%



                                       At December 31,


2018

2017




Stockholders' equity as a % of total assets

11.17%

11.37%




Book value per share

$

30.95

$

29.40




Common shares outstanding- EOP

1,206,327

1,214,879










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




























 


 

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