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

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Feb 02, 2018, 01:18 ET

HUNTINGTON, Ind., Feb. 2, 2018 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced annual earnings for the full year 2017 of $3.4 million ($2.84 per diluted common share). 2017 annual earnings represent the third highest earnings level ever recorded for the Company. The full year 2017 earnings equates to a return on average assets of 1.12% and a return on average equity of 9.66% compared to an ROA of 1.22% and an ROE of 10.58% for the full year 2016.

Total assets increased $13.2 million or 4.4% to $314.2 million at December 31, 2017 compared to December 31, 2016 assets of $301.0 million. Total net loans increased $28.4 million or 14.4% to $225.1 million at December 31, 2017 from $196.8 million at December 31, 2016. Total deposits decreased $6.3 million or 2.9% to $212.1 million at December 31, 2017 from $218.4 million at December 31, 2016. Nonperforming assets also declined by $2.4 million or 49.0% from $4.9 million at December 31, 2016 compared to $2.5 million at December 31, 2017.

The Company also announced quarterly earnings for the three months ended December 31, 2017 of $509,000 ($0.42 per diluted common share). Earnings for the quarter ended December 31, 2016 were $825,000 ($0.69 per diluted common share). 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 0.66% and an ROE of 5.58% compared to an ROA of 1.10% and an ROE of 9.56% for the prior year quarter ended December 31, 2016.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "I'm very pleased with our financial performance in 2017. Our earnings remain strong, our loan growth continues at a steady pace and our ability to reward our shareholders with increased and special dividends remained intact. Although the fourth quarter 2017 was negatively impacted by the impairment to our DTA's, we are optimistic that tax reform will have a significantly positive impact on earnings moving forward."

The Company paid out cash dividends of $1.7 million to shareholders during the year ended December 31, 2017 including roughly $607,000 from a Special Cash Dividend ($0.50 per common share) that was paid to shareholders in December 2017 for the 3^rd year in a row. The book value of NIDB stock was $29.40 per common share as of December 31, 2017. The Company's stock closed at $35.15 per common share on December 31, 2017, an increase of $2.14 or 6.5% compared to the closing stock price of $33.01 per common share on December 31, 2016.

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, 2017		December 31, 2016
Interest-earning cash and cash equivalents					$	3,954,186	$	4,591,440
Noninterest earning cash and cash equivalents					3,559,790		2,493,983
Total cash and cash equivalents					7,513,976		7,085,423
Securities available for sale					58,583,396		66,171,764
Interest-earning deposits in financial institutions					1,715,000		9,082,982
Securities held to maturity					1,728,199		2,582,029
Loans held for sale					1,064,300		109,000
Loans receivable, net of allowance for loan loss Dec. 31, 2017 $2,746,523 and Dec. 31, 2016 $3,144,092					225,132,535		196,781,434
Accrued interest receivable					1,246,930		1,161,779
Premises and equipment					4,148,328		4,060,931
Investments in limited liability partnerships					2,708,333		2,908,333
Cash surrender value of life insurance					8,382,193		8,160,693
Other assets					1,952,615		2,855,115
*Total Assets*					$	314,175,805	$	300,959,483
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits					25,242,627		24,218,658
Interest bearing deposits					186,916,030		194,192,875
Borrowed Funds					61,199,066		42,650,461
Accrued interest payable and other liabilities					5,098,911		6,259,318
*Total Liabilities*					278,456,634		267,321,312

Retained earnings – substantially restricted					35,719,171		33,638,171
*Total Liabilities and Shareholders' Equity*					$	314,175,805	$	300,959,483

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2017		2016		2017			2016
Total interest income	$	3,205,529	$	2,879,477	$	12,223,894	$	11,383,758
Total interest expense		603,719		438,467		2,129,396		1,688,479
Net interest income	$	2,601,810	$	2,441,010	$	10,094,498	$	9,695,279
Provision for loan losses		-		-		(600,000)		-
Net interest income after provision for loan losses	$	2,601,810	$	2,441,010	$	10,694,498	$	9,695,279
Service charges on deposit accounts		183,533		159,854		634,205		644,863
Interchange fees		120,714		105,574		465,429		426,016
Net gain on sale of securities		-		-		(6,931)		1,442
Net gain on sale of loans		90,664		191,035		562,139		1,083,130
Net loss on sale of repossessed assets		6,974		(10,345)		548		(23,105)
Net loss on sale of fixed assets		(47)		-		(47)		(8,997)
Brokerage fees		51,079		47,687		215,505		259,173
Other income		197,580		185,714		791,267		733,848
Total noninterest income	$	650,497	$	679,519	$	2,662,115	$	3,116,370
Salaries and employee benefits		1,119,902		1,069,180		4,399,254		4,125,359
Occupancy		250,523		255,556		992,754		1,048,549
Data processing		269,258		257,581		971,955		890,179
Deposit insurance premiums		24,000		10,000		102,000		135,000
Professional fees		73,794		56,573		355,083		250,789
Advertising and marketing		74,918		71,997		218,132		221,631
Correspondent bank charges		39,186		31,677		132,841		135,678
Other expense		265,275		248,992		1,023,798		927,371
Total noninterest expenses	$	2,116,856	$	2,001,556	$	8,195,817	$	7,734,556
Income before income tax expense	$	1,135,451	$	1,118,973	$	5,160,796	$	5,077,093
Income tax expense		626,847		294,307		1,748,054		1,482,645
Net Income	$	508,604	$	824,666	$	3,412,742	$	3,594,448

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2017		2016		2017		2016
Basic Earnings per common share	0.42		0.69		2.84		2.99
Dilutive Earnings per share	0.42		0.69		2.84		2.99
Net interest margin	3.61%		3.50%		3.56%		3.52%
Return on average assets	0.66%		1.10%		1.12%		1.22%
Return on average equity	5.58%		9.56%		9.66%		10.58%
Efficiency Ratio	65.09%		64.14%		64.25%		60.37%
Average shares outstanding - primary	1,200,779		1,198,979		1,200,013		1,202,215
Average shares outstanding - diluted	1,200,779		1,198,979		1,200,913		1,202,240

Allowance for loan losses:
Balance at beginning of period	$	2,912,563	$	3,149,801	$	3,144,092	$	3,196,953
Charge-offs:
One-to-four family	38,599		-		94,829		25,781
Commercial real estate	-		-		530,692		-
Land/land development	-		-		-		-
Commercial	117,370		3,893		117,370		15,375
Consumer	106,981		36,925		295,426		227,156
Gross charge-offs	262,950		40,818		1,038,317		268,312
Recoveries:
One-to-four family	336		941		1,930		23,019
Commercial real estate	6,575		-		692,155		-
Land/land development	-		-		-		-
Commercial	40,558		-		390,748		13,129
Consumer	49,441		34,168		155,915		179,303
Gross recoveries	96,910		35,109		1,240,748		215,451
Net charge-offs	166,040		5,709		202,429		52,861
Additions charged to operations	-		-		(600,000)		-
Balance at end of period	$	2,746,523	$	3,144,092	$	2,746,523	$	3,144,092

Net loan charge-offs (recoveries) to average loans (1)	0.30%		0.00%		(0.10%)		0.03%

Nonperforming assets (000's)	At December 31,		At September 30,		At June 30,		At December 31,
Loans:	2017		2017		2017		2016
Non-accrual	$	2,261	$	2,260	$	2,908	$	3,595
Past 90 days or more and still accruing	-		-		-		-
Troubled debt restructured	236		425		356		1,232
Total nonperforming loans	2,497		2,685		3,260		4,827
Real estate owned	-		-		9		69
Other repossessed assets	-		-		-		-
Total nonperforming assets	$	2,497	$	2,685	$	3,269	$	4,893

Nonperforming assets to total assets	0.79%			0.88%	1.08%		1.63%
Nonperforming loans to total loans	1.10%			1.25%	1.57%		2.41%
Allowance for loan losses to nonperforming loans	110.01%			108.47%	81.60%		65.13%
Allowance for loan losses to total receivable	1.22%			1.36%	1.30%		1.60%
	At December 31,
	2017		2016
Stockholders' equity as a % of total assets	11.37%		11.18%
Book value per share	$	29.40	$	27.86
Common shares outstanding- EOP	1,214,879		1,207,379

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