Northeast Indiana Bancorp, Inc. Announces First Quarter Earnings
HUNTINGTON, Ind., May 2, 2011 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTC Bulletin Board: NIDB), the parent company of First Federal Savings Bank, has announced a net loss of ($14,000) ($0.01 per diluted common share) for the first quarter ended March 31, 2011 compared to net income of $452,000 ($0.37 per diluted common share) for the first quarter ended March 31, 2010. The reduction in net income is solely due to a significant increase in provision for loan losses between the two quarterly periods as discussed below.
Commenting on the financial results, First Federal Savings Bank CEO Michael S. Zahn stated, "With the economic recovery slower than expected, we felt it was prudent to bolster our allowance for loan losses this quarter."
Net interest income was $2.1 million for the quarter ended March 31, 2011 compared to $2.0 million for the quarter ended March 31, 2010. The Company's net interest margin increased slightly to 3.58% for the current quarter compared to 3.48% for the year earlier quarter.
The Company made a $1.2 million provision for loan loss during the quarter ended March 31, 2011 compared to a $350,000 provision for loan loss for the quarter ended March 31, 2010. Management elected to take the higher provision levels after considering the higher quarterly net charge-offs and in light of continued weakness in the real estate markets in which we do business. Net charge-offs were $737,000 for the quarter ended March 31, 2011 compared to net charge-offs of $428,000 for the quarter ended March 31, 2010. Nonperforming assets increased to $10.2 million at March 31, 2011 when compared to $8.6 million at December 31, 2010.
Noninterest income decreased by $15,000 to $474,000 for the current period compared to $489,000 during the year earlier period. The reduction is due to a reduction in service charges on deposit accounts, an increase in net losses on sale of repossessed assets and a decline in brokerage fees. This decrease was partially offset by a reduction in losses on the sale of securities of $34,000 and an increase in net gains on sale of loans of $31,000 between the current quarterly period and the prior year quarterly period.
Noninterest expense was relatively unchanged at $1.6 million for both the quarter ended March 31, 2011 as well as for the quarter ended March 31, 2010.
Net loans receivable decreased $3.2 million to $179.7 million at March 31, 2011 when compared to $182.9 million at December 31, 2010. Total deposits increased sharply by $11.7 million or 6.6% to $188.1 million at March 31, 2011 compared to $176.4 million at December 31, 2010. The significant increase in deposits came in retail NOW, MMDA and Savings balances through First Federal's full service branches. These newly acquired retail deposits were utilized to pay off maturing wholesale borrowed funds. Borrowed funds declined $12.6 million or 23.5% to $41.0 million at March 31, 2011 compared to $53.6 million at December 31, 2010.
Shareholders' equity was relatively unchanged at $24.1 million at both March 31, 2011 as well as at December 31, 2010. The book value of NIDB's stock was $19.48 per common share as of March 31, 2011. The number of outstanding common shares was 1,239,946. The last reported trade of the stock on April 29, 2011 was $12.95 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 Over the Counter Bulletin Board 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, 2011 |
December 31, 2010 |
||||
Interest-earning cash and cash equivalents |
$ |
7,678,932 |
$ |
9,450,979 |
||
Noninterest earning cash and cash equivalents |
1,884,221 |
2,045,215 |
||||
Total cash and cash equivalents |
9,563,153 |
11,496,194 |
||||
Securities available for sale |
50,361,668 |
46,477,692 |
||||
Securities held to maturity |
240,000 |
400,000 |
||||
Loans held for sale |
38,000 |
353,642 |
||||
Loans receivable, net of allowance for loan loss March 31, 2011 $3,690,382 and December 31, 2010 $3,227,844 |
179,702,430 |
182,913,386 |
||||
Accrued interest receivable |
1,031,109 |
981,357 |
||||
Premises and equipment |
2,504,363 |
2,554,170 |
||||
Investments in limited liability partnerships |
213,204 |
233,001 |
||||
Cash surrender value of life insurance |
6,830,081 |
6,765,215 |
||||
Other assets |
5,088,782 |
3,926,783 |
||||
Total Assets |
$ |
255,572,790 |
$ |
256,101,440 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Non-interest bearing deposits |
12,364,436 |
14,301,482 |
||||
Interest bearing deposits |
175,700,785 |
162,099,970 |
||||
Borrowed Funds |
41,006,821 |
53,565,973 |
||||
Accrued interest payable and other liabilities |
2,343,609 |
1,998,866 |
||||
Total Liabilities |
231,415,651 |
231,966,291 |
||||
Retained earnings – substantially restricted |
24,157,139 |
24,135,149 |
||||
Total Liabilities and Shareholders' Equity |
$ |
255,572,790 |
$ |
256,101,440 |
||
CONSOLIDATED STATEMENTS OF INCOME |
|||||
Three Months Ended |
|||||
March 31, |
|||||
2011 |
2010 |
||||
Total interest income |
$ |
3,029,647 |
$ |
3,207,663 |
|
Total interest expense |
884,363 |
1,176,827 |
|||
Net interest income |
$ |
2,145,284 |
$ |
2,030,836 |
|
Provision for loan losses |
1,200,000 |
350,000 |
|||
Net interest income after provision for loan losses |
$ |
945,284 |
$ |
1,680,836 |
|
Service charges on deposit accounts |
135,681 |
165,447 |
|||
Net gain on sale of loans |
61,812 |
30,844 |
|||
Net gain (loss) on sale of securities |
- |
(34,201) |
|||
Net gain (loss) on sale of repossessed assets |
(50,126) |
(15,766) |
|||
Brokerage fees |
96,555 |
110,875 |
|||
Increase in cash surrender value of life insurance |
64,866 |
63,319 |
|||
Other income |
165,056 |
167,984 |
|||
Total noninterest income |
$ |
473,844 |
$ |
488,502 |
|
Salaries and employee benefits |
849,760 |
839,797 |
|||
Occupancy |
225,769 |
204,352 |
|||
Data processing |
194,636 |
190,348 |
|||
Deposit insurance premiums |
84,000 |
71,400 |
|||
Professional fees |
77,198 |
62,538 |
|||
Correspondent bank charges |
32,351 |
28,895 |
|||
Other expense |
179,235 |
194,283 |
|||
Total noninterest expenses |
$ |
1,642,949 |
$ |
1,591,613 |
|
Income/(loss) before income tax expenses |
$ |
(223,821) |
$ |
577,725 |
|
Income tax expense/(benefit) |
(209,659) |
125,437 |
|||
Net Income/(loss) |
$ |
(14,162) |
$ |
452,288 |
|
NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
|||||||||
Three Months Ended March 31, |
|||||||||
2011 |
2010 |
||||||||
Basic Earnings per common share |
(.01) |
0.37 |
|||||||
Dilutive Earnings per share |
(.01) |
0.37 |
|||||||
Net interest margin |
3.58% |
3.48% |
|||||||
Return on average assets |
(.02%) |
0.72% |
|||||||
Return on average equity |
(.23%) |
7.84% |
|||||||
Efficiency ratio |
62.73% |
63.18% |
|||||||
Average shares outstanding- primary |
1,231,160 |
1,235,605 |
|||||||
Average shares outstanding- diluted |
1,231,778 |
1,235,672 |
|||||||
Allowance for loan losses: |
|||||||||
Balance at beginning of period |
$ |
3,227,844 |
$ |
2,868,468 |
|||||
Charge-offs: |
|||||||||
One-to-four family |
330,453 |
92,067 |
|||||||
Commercial real estate |
- |
37,065 |
|||||||
Land/land development |
284,961 |
- |
|||||||
Commercial |
46,588 |
309,726 |
|||||||
Consumer |
82,854 |
370 |
|||||||
Gross charge-offs |
744,856 |
439,228 |
|||||||
Recoveries: |
|||||||||
One-to-four family |
800 |
975 |
|||||||
Commercial real estate |
- |
- |
|||||||
Land/land development |
- |
- |
|||||||
Commercial |
- |
- |
|||||||
Consumer |
6,594 |
10,186 |
|||||||
Gross recoveries |
7,394 |
11,161 |
|||||||
Net charge-offs |
737,462 |
428,067 |
|||||||
Additions charged to operations |
1,200,000 |
350,000 |
|||||||
Balance at end of period |
$ |
3,690,382 |
$ |
2,790,401 |
|||||
Net loan charge-offs to average loans (1) |
1.58% |
0.87% |
|||||||
Nonperforming assets (000's) |
At March 31, |
At December 31, |
|||||||
Loans: |
2011 |
2010 |
|||||||
Non-accrual |
$ |
5,908 |
$ |
7,275 |
|||||
Past 90 days or more and still accruing |
- |
- |
|||||||
Troubled debt restructured |
2,611 |
737 |
|||||||
Total nonperforming loans |
8,520 |
8,012 |
|||||||
Real estate owned |
1,694 |
594 |
|||||||
Other repossessed assets |
1 |
- |
|||||||
Total nonperforming assets |
$ |
10,215 |
$ |
8,606 |
|||||
Nonperforming assets to total assets |
3.99% |
3.36% |
|||||||
Nonperforming loans to total loans |
4.65% |
4.30% |
|||||||
Allowance for loan losses to nonperforming loans |
43.32% |
40.29% |
|||||||
Allowance for loan losses to net loans receivable |
2.05% |
1.76% |
|||||||
At March 31, |
|||||||||
2011 |
2010 |
||||||||
Stockholders' equity as a % of total assets |
9.45% |
9.26% |
|||||||
Book value per share |
$ 19.48 |
$ 18.83 |
|||||||
Common shares outstanding- EOP |
1,239,946 |
1,239,946 |
|||||||
(1) Ratios for the three-month periods are annualized. |
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SOURCE Northeast Indiana Bancorp, Inc.
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