Northeast Indiana Bancorp, Inc. Announces Increased Third Quarter Earnings
HUNTINGTON, Ind., Oct. 13, 2011 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income increased $92,000 or 17.1% to $631,000 ($0.51 per diluted common share) for the Company's third quarter ended September 30, 2011 compared to net income of $539,000 ($0.44 per diluted common share) for the third quarter ended September 30, 2010. The current three months earnings equates to an annualized return on average assets (ROA) of 0.98% and a return on average equity (ROE) of 9.97% compared to an annualized ROA of 0.83% and an ROE of 9.02% for the three months ended September 30, 2010.
Net interest income increased by $129,000 or 5.9% to $2.3 million for the quarter ended September 30, 2011 when compared to $2.2 million for the quarter ended September 30, 2010. The Company's net interest margin increased by thirty basis points to 3.85% for the current quarter compared to 3.55% in the year earlier quarter. On a linked quarter basis, the Company's 3.85% net interest margin was eleven basis points higher compared to the 3.74% net interest margin reported for the quarter ended June 30, 2011.
The Company made a $375,000 provision for loan loss during the quarter ended September 30, 2011 compared to a $500,000 provision for loan loss for the quarter ended September 30, 2010. Management continues to feel it is prudent to increase the allowance for loan losses by setting aside provisions for loan losses at higher levels during these weak economic conditions. The Company experienced a decline in net charge-offs to $123,000 for the quarter ended September 30, 2011 compared to net charge-offs of $515,000 for the quarter ended September 30, 2010. In addition, total non-performing assets declined $1.6 million or 17.0% to $8.0 million at September 30, 2011 compared to $9.6 million at June 30, 2011.
Noninterest income increased slightly to $727,000 for the third quarter ended September 30, 2011 compared to $687,000 during the quarter ended September 30, 2010. The modest increase is mostly due to an increase of $188,000 in net gains on security sales more than offsetting an increase in net losses on repossessed asset sales and a decline in net gain on loan sales between quarterly periods.
Noninterest expense increased $175,000 to $1.8 million for the quarter ended September 30, 2011 when compared to $1.6 million for the quarter ended September 30, 2010. This increase was due to a $90,000 non-recurring payment into the bank's frozen defined benefit pension plan to remain adequately funded. In addition, management set up a $67,500 valuation allowance on three real estate owned parcels due to continued weak market pricing on similar collateral.
Net income for the nine months ended September 30, 2011 decreased to $1.29 million ($1.05 per diluted common share) compared to net income of $1.48 million ($1.21 per diluted common share) for the nine months ended September 30, 2010. Net interest income increased $351,000 or 5.5% to $6.69 million for the nine months ended September 30, 2011 compared to $6.34 million for the prior year nine month period. The Company made a $1.93 million provision for loan loss for the nine months ended September 30, 2011 compared to a $1.35 million provision for loan loss for the nine months ended September 30, 2010. Noninterest income increased slightly to $1.92 million for the nine months ended September 30, 2011 compared to $1.88 million for September 30, 2010. Noninterest expense was $266,000 higher for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010. Increases in salaries and employee benefits between nine month periods were due to the non-recurring pension payment as well as the establishment of a valuation allowance on real estate owned, both of which were discussed with quarterly results. These increases were partially offset by decreases in deposit insurance premiums.
Total assets increased $3.07 million or 1.2% to $259.17 million at September 30, 2011 compared to December 31, 2010 assets of $256.10 million. Net loans decreased $3.45 million to $179.46 million at September 30, 2011 compared to $182.91 million at December 31, 2010. However, net loans increased 3.0% or $5.26 million for the current quarter when compared to net loans reported of $174.20 million at June 30, 2011. Total deposits increased sharply by $13.16 million or 7.5% to $189.56 million at September 30, 2011 from $176.40 million at December 31, 2010. The increase in total deposits came in noninterest bearing DDA, NOW, MMDA and Savings balances through First Federal's full service branches. These newly acquired lower-costing deposits were utilized to pay off maturing brokered deposits and wholesale borrowed funds. Borrowed funds decreased $12.18 million or 22.7% to $41.38 million at September 30, 2011 compared to $53.56 million at December 31, 2010.
Shareholder's equity at September 30, 2011 was $25.57 million compared to $24.13 million at December 31, 2010. The book value of NEIB's stock was $20.62 per common share as of September 30, 2011. The number of outstanding common shares was 1,239,946. The last reported trade of the stock on October 11, 2011 was $12.10 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 four full-service Indiana offices in Huntington (2), Warsaw and Fort Wayne. 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
September 30,
2011
December 31,
2010
Interest-earning cash and cash equivalents
$
8,993,434
$
9,450,979
Noninterest earning cash and cash equivalents
3,065,342
2,045,215
Total cash and cash equivalents
12,058,776
11,496,194
Securities available for sale
51,463,727
46,477,692
Securities held to maturity
483,304
400,000
Loans held for sale
1,248,200
353,642
Loans receivable, net of allowance for loan loss September 30, 2011
$3,859,859 and December 31, 2010 $3,227,844
179,465,188
182,913,386
Accrued interest receivable
968,755
981,357
Premises and equipment
2,510,383
2,554,170
Investments in limited liability partnerships
173,610
233,001
Cash surrender value of life insurance
6,954,356
6,765,215
Other assets
3,843,423
3,926,783
Total Assets
$
259,169,722
$
256,101,440
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits
14,616,806
14,301,482
Interest bearing deposits
174,947,410
162,099,970
Borrowed Funds
41,385,764
53,565,973
Accrued interest payable and other liabilities
2,649,100
1,998,866
Total Liabilities
233,599,080
231,966,291
Retained earnings – substantially restricted
25,570,642
24,135,149
Total Liabilities and Shareholders' Equity
$
259,169,722
$
256,101,440
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Nine Months Ended
September 30,
September 30,
2011
2010
2011
2010
Total interest income
$
3,048,865
$
3,248,075
$
9,133,501
$
9,691,357
Total interest expense
744,798
1,072,797
2,441,124
3,349,686
Net interest income
$
2,304,067
$
2,175,278
$
6,692,377
$
6,341,671
Provision for loan losses
375,000
500,000
1,925,000
1,350,000
Net interest income after provision for loan losses
$
1,929,067
$
1,675,278
$
4,767,377
$
4,991,671
Service charges on deposit accounts
160,060
172,027
450,048
515,344
Net gain/ (loss) on sale of securities
158,362
(29,412)
272,542
(69,259)
Net gain on sale of loans
187,863
235,142
441,949
480,709
Net (loss) on sale of repossessed assets
(103,607)
(742)
(204,902)
(54,083)
Brokerage fees
113,033
87,169
303,190
304,914
Increase in cash surrender value of life insurance
62,138
61,481
189,141
188,119
Other income
149,236
161,171
466,368
510,238
Total noninterest income
$
727,085
$
686,836
$
1,918,336
$
1,875,982
Salaries and employee benefits
925,219
848,710
2,634,326
2,553,739
Occupancy
235,265
226,371
706,614
654,757
Data processing
186,320
188,722
578,892
566,441
Deposit insurance premiums
31,000
84,000
194,000
233,400
Professional fees
102,255
77,412
289,097
221,122
Correspondent bank charges
33,662
32,319
100,989
92,867
Valuation allowances – repossessed assets
67,500
-
67,500
-
Other expense
226,598
174,785
577,585
560,359
Total noninterest expenses
$
1,807,819
$
1,632,319
$
5,149,003
$
4,882,685
Income before income tax expense
$
848,333
$
729,795
$
1,536,710
$
1,984,968
Income tax expense
217,564
190,325
243,324
502,430
Net Income
$
630,769
$
539,470
$
1,293,386
$
1,482,538
NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2011
2010
2011
2010
Basic Earnings per common share
0.51
0.44
1.05
1.21
Dilutive Earnings per share
0.51
0.44
1.05
1.21
Net interest margin
3.85%
3.55%
3.72%
3.53%
Return on average assets
0.98%
0.83%
0.67%
0.77%
Return on average equity
9.97%
9.02%
6.99%
8.42%
Efficiency ratio
59.64%
57.03%
59.80%
59.42%
Average shares outstanding- primary
1,232,303
1,229,589
1,231,717
1,229.235
Average shares outstanding- diluted
1,237,507
1,229,872
1,232,584
1,229,919
Allowance for loan losses:
Balance at beginning of period
$
3,608,088
$
2,838,360
$
3,227,844
$
2,868,468
Charge-offs:
One-to-four family
124,116
213,145
454,569
312,504
Commercial real estate
15,138
174,286
304,479
302,368
Land/land development
-
-
284,961
-
Commercial
-
126,046
124,292
801,106
Consumer
-
21,933
160,945
31,286
Gross charge-offs
141,297
535,410
1,329,246
1,447,264
Recoveries:
One-to-four family
975
975
2,425
2,925
Commercial real estate
-
455
-
455
Land/land development
-
-
-
-
Commercial
-
6,791
-
6,791
Consumer
17,093
11,945
33,836
41,742
Gross recoveries
18,068
20,166
36,261
51,912
Net charge-offs
123,299
515,244
1,292,985
1,395,352
Additions charged to operations
375,000
500,000
1,925,000
1,350,000
Balance at end of period
$
3,859,859
$
2,823,116
$
3,859,859
$
2,823,116
Net loan charge-offs to average loans (1)
0.27%
1.06%
0.94%
0.95%
Nonperforming assets (000's)
At September 30,
At September 30,
At June 30,
At December 31,
Loans:
2011
2010
2011
2010
Non-accrual
$
6,750
$
6,246
$
5,640
$
7,275
Past 90 days or more and still accruing
-
-
-
-
Troubled debt restructured
-
708
2,421
737
Total nonperforming loans
6,750
6,954
8,061
8,012
Real estate owned
1,254
1,487
1,586
594
Other repossessed assets
-
19
1
0
Total nonperforming assets
$
8,004
$
8,460
$
9,648
$
8,606
Nonperforming assets to total assets
3.10%
3.28%
3.78%
3.36%
Nonperforming loans to total loans
3.68%
3.65%
4.53%
4.30%
Allowance for loan losses to nonperforming loans
57.19%
40.59%
44.77%
40.29%
Allowance for loan losses to net loans receivable
2.11%
1.48%
2.07%
1.76%
At September 30,
2011
2010
Stockholders' equity as a % of total assets
9.87%
9.32%
Book value per share
$
20.62
$
19.58
Common shares outstanding- EOP
1,239,946
1,239,946
(1) Ratios for the three-month periods are annualized.
SOURCE Northeast Indiana Bancorp, Inc.
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