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Northeast Indiana Bancorp, Inc. Announces Increased Second Quarter Earnings...
On Monday July 13, 2009, 1:18 pm EDT
HUNTINGTON, Ind., July 13 /PRNewswire-FirstCall/ -- Northeast Indiana Bancorp, Inc. (OTC Bulletin Board: NIDB - News), the parent company of First Federal Savings Bank, today announced net income of $476,000 ($0.39 per diluted common share) for the Company's second quarter ended June 30, 2009 compared to net income of $408,000 ($0.32 per diluted common share) for the second quarter ended June 30, 2008. The current three months earnings equates to an annualized return on average assets (ROA) of 0.77% and a return on average equity (ROE) of 8.61% compared to an annualized ROA of 0.66% and an ROE of 7.18% for the months ended June 30, 2008.
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NIDB.OB 9.00 0.00
Net interest income increased sharply by $353,000 or 21.5% to $2.0 million for the quarter ended June 30, 2009 when compared to $1.6 million for the quarter ended June 30, 2008. The Company's net interest margin increased significantly by sixty-one basis points to 3.43% for the current quarter compared to 2.82% in the year earlier quarter. Sequentially, the current quarter's 3.43% net interest margin was also a six basis point improvement over the quarter ended March 31, 2009 net interest margin of 3.37%.
The Company made a $300,000 provision for loan loss during the quarter ended June 30, 2009 compared to a $90,000 provision for loan loss for the quarter ended June 30, 2008. Management feels it is prudent to increase the allowance for loan losses by setting aside provisions for loan losses at higher levels during these uncertain economic conditions. The bank recorded net charge-offs of $25,000 for the quarter ended June 30, 2009 compared to net recoveries of ($8,000) for the quarter ended June 30, 2008.
Noninterest income increased sharply to $628,000 during the quarter ended June 30, 2009 when compared to $490,000 in the same quarterly period a year ago. This was primarily due to a significant increase in gains on the sale of loans of $190,000 from heavy refinancing activity between quarterly periods which helped to offset losses on the sale of securities and decreased brokerage fees.
Noninterest expense increased by $119,000 to $1.6 million for the current quarter compared with $1.5 million for the quarter ended June 30, 2008. The increase was due to FDIC insurance premiums increasing $178,000 between quarterly periods. Of the $178,000 increase, roughly $115,000 was directly related to the non-recurring FDIC Special Assessment levied on all FDIC - insured financial institutions as of June 30, 2009 but payable September 30, 2009. This substantial increase was partially offset by decreases in salaries and benefits, occupancy, and other expense. The Company's efficiency ratio improved to 61.9% for the current three month period compared to 70.5% in the prior year three month period.
Net income for the six months ended June 30, 2009 increased $243,000 or 31.7% to $1.0 million ($0.82 per diluted common share) compared to net income of $766,000 ($0.60 per diluted common share) for the six months ended June 30, 2008.
The sharp increase in net income between six month periods is due to both significantly improved net interest income from expanded net interest margins as well as record six month gains on loan sales activity due to the record refinance activity processed by First Federal Savings Bank. These improvements were partially offset by increased loan loss provisions, sharply higher FDIC insurance premiums, and increased net losses on the sale of repossessed assets.
Total assets decreased $13.8 million to $246.4 million at June 30, 2009 compared to December 31, 2008 assets of $260.2 million. The asset decline is primarily due to large non-interest bearing funds on hand at year end 2008 clearing early in first quarter 2009 as well as a reduction in single family portfolio mortgage balances due to most fixed rate originations being sold servicing retained to FHLMC. Net loans decreased $6.2 million to $197.9 million at June 30, 2009 compared to $204.2 million at December 31, 2008. Total deposits decreased $2.3 million to $153.4 million at June 30, 2009 from $155.7 million at December 31, 2008. Borrowed funds decreased $11.5 million to $68.5 million at June 30, 2009 compared to $80.0 million at December 31, 2008. Proceeds from the sale of fixed rate mortgages to FHLMC were used to pay down borrowed funds.
Shareholder's equity was $22.2 million at June 30, 2009 compared to $21.8 million at December 31, 2008. The book value of NIDB's stock was $18.04 per common share as of June 30, 2009. The number of outstanding common shares was 1,230,670 as of the same date. The last reported trade of the stock on July 10, 2009 was $9.50 per common share.
Northeast Indiana Bancorp, Inc. is headquartered at 648 North Jefferson Street, Huntington, Indiana. The company offers a full array of banking and financial brokerage services to its customers through three full service branches located in Huntington, Indiana and one full service branch located in Warsaw, Indiana. The Company announced during the quarter ended March 31, 2009 that it will build a full service branch in Fort Wayne, Indiana. That branch is currently under construction with an anticipated completion date during the third quarter of 2009. The Company is traded on the Over the Counter Bulletin Board ("OTCBB") under the symbol "NIDB".
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, December 31,
2009 2008
-------- -------------
Interest-earning cash and cash equivalents $969,211 $6,122,439
Noninterest earning cash and cash equivalents 1,953,912 2,284,062
--------- ---------
Total cash and cash equivalents 2,923,123 8,406,501
Securities available for sale 31,261,282 33,022,602
Securities held to maturity 550,000 550,000
Loans held for sale 138,000 709,400
Loans receivable, net of allowance for loan
loss June 30, 2009 $2,161,415 and
December 31, 2008 $1,750,605 197,946,333 204,171,179
Accrued interest receivable 1,111,004 1,070,708
Premises and equipment 2,160,053 2,178,416
Investments in limited liability partnerships 389,961 462,279
Cash surrender value of life insurance 6,381,290 6,253,417
Other assets 3,555,027 3,415,020
--------- ---------
Total Assets $246,416,073 $260,239,522
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits 9,910,116 19,873,896
Interest bearing deposits 143,489,648 135,824,869
----------- -----------
Borrowed Funds 68,484,555 79,982,575
Accrued interest payable and other
liabilities 2,336,343 2,782,849
--------- ---------
Total Liabilities 224,220,662 238,464,189
----------- -----------
Retained earnings - substantially
restricted 22,195,411 21,775,333
Total Liabilities and
Shareholder's Equity $246,416,073 $260,239,522
============ ============
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
Total interest income $3,422,105 $3,583,640 $6,983,887 $7,162,050
Total interest expense 1,424,302 1,939,203 2,982,482 4,058,396
--------- --------- --------- ---------
Net interest income $1,997,803 $1,644,437 $4,001,405 $3,103,654
---------- ---------- ---------- ----------
Provision for loan
losses 300,000 90,000 575,000 180,000
Net interest income
after provision for
loan losses $1,697,803 $1,554,437 $3,426,405 $2,923,654
Service charges on
deposit accounts 177,420 176,168 331,190 338,364
Net gain (loss) on
sale of securities (45,198) 637 (46,790) 12,414
Net gain on sale of
loans 205,577 14,799 429,235 54,486
Net loss on sale of
repossessed assets (10,684) (6,893) (87,597) (9,732)
Brokerage fees 61,791 92,980 138,411 206,011
Increase in cash
surrender value of
life insurance 61,626 60,744 127,873 123,699
Other income 177,439 151,214 308,212 289,196
------- ------- ------- -------
Total noninterest
income $627,971 $489,649 $1,200,534 $1,014,438
-------- -------- ---------- ----------
Salaries and employee
benefits 758,304 782,943 1,496,598 1,562,586
Occupancy 192,149 208,011 395,096 398,500
Data processing 193,689 165,514 384,714 332,556
Deposit insurance
premiums 182,000 3,936 236,000 7,765
Professional fees 50,083 23,602 112,880 72,825
Correspondent bank
charges 31,630 35,051 62,720 71,029
Other expense 216,607 286,212 440,245 497,996
------- ------- ------- -------
Total noninterest
expenses $1,624,462 $1,505,269 $3,128,253 $2,943,257
---------- ---------- ---------- ----------
Income before income
tax expenses $701,312 $538,817 $1,498,686 $994,835
-------- -------- ---------- --------
Income tax expense 224,843 130,429 489,519 228,540
Net Income $476,469 $408,388 $1,009,167 $766,295
========= ========= ========== ==========
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
Basic Earnings per common
share 0.39 0.32 0.82 0.60
Dilutive Earnings per
share 0.39 0.32 0.82 0.60
Net interest margin 3.43% 2.82% 3.40% 2.70%
Return on average assets 0.77% 0.66% 0.81% 0.63%
Return on average equity 8.61% 7.18% 9.64% 6.70%
Efficiency ratio 61.87% 70.53% 60.14% 71.47%
Average shares
outstanding - primary 1,227,920 1,263,014 1,227,816 1,285,413
Average shares
outstanding - diluted 1,227,920 1,263,014 1,227,933 1,285,530
--------- --------- --------- ---------
Allowance for loan
losses:
Balance at
beginning of
period $1,886,191 $2,758,015 $1,750,605 $2,712,378
Charge-offs:
One-to-four
family 139,308 - 194,266 -
Commercial real
estate - - - -
Commercial 14,358 - 14,358 184,723
Consumer 22,039 4,948 117,538 11,992
------ ----- ------- ------
Gross
charge-offs 175,705 4,948 326,162 196,714
Recoveries:
One-to-four family 760 - 1,130 -
Commercial real
estate - - - -
Commercial 136,635 - 136,635 132,564
Consumer 13,534 12,557 24,207 27,396
------ ------ ------ ------
Gross
recoveries 150,929 12,557 161,972 159,960
------- ------ ------- -------
Net charge-offs 24,776 (7,609) 164,190 36,754
Additions charged to
operations 300,000 90,000 575,000 180,000
------- ------ ------- -------
Balance at end
of period $2,161,415 $2,855,624 $2,161,415 $2,855,624
========== ========== ========== ==========
Net loan charge-offs to
average loans (1) 0.05% 0.02% 0.16% 0.04%
---- ---- ---- ----
Nonperforming assets At June 30, At March 31, At December 31,
(000's) 2009 2009 2008
---- ---- ----
Loans:
Non-accrual $2,501 $2,171 $1,570
Past 90 days or
more and
still accruing - - -
Troubled debt
restructured 1,622 1,622 -
----- ----- ----
Total
nonperforming
loans 4,123 3,793 1,570
Real estate owned 1,498 1,332 1,423
Other repossessed
assets 1 1 8
---- ---- ----
Total nonperforming
assets $5,622 $5,126 $3,001
====== ====== ======
Nonperforming assets to
total assets 2.28% 2.05% 1.15%
Nonperforming loans to
total loans 2.06% 1.87% 0.76%
Allowance for loan
losses to nonperforming
loans 52.41% 49.72% 111.53%
Allowance for loan
Losses to net loans
receivable 1.09% 0.94% 0.86%
At June 30,
2009 2008
---- ----
Stockholders' equity as a % of total
assets 9.01% 8.66%
Book value per share $18.04 $17.84
Common shares outstanding- EOP 1,230,670 1,230,670
(1) Ratios for the three-month periods are annualized.
