Northeast Indiana Bancorp, Inc. Announces First Quarter Earnings

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Apr 15, 2013, 09:33 ET

HUNTINGTON, Ind., April 15, 2013 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced net income of $547,000 ($0.44 per diluted common share) for the first quarter ended March 31, 2013 compared to net income of $694,000 ($0.56 per diluted common share) for the first quarter ended March 31, 2012. The current three months earnings equate to an annualized return on average assets (ROA) of 0.82% and a return on average equity (ROE) of 7.79% compared to an ROA of 1.07% and an ROE of 10.51% for the prior year quarter ended March 31, 2012.

Commenting on the financial results, First Federal Savings Bank CEO Michael S. Zahn stated, "The prolonged low rate environment combined with high liquidity levels and weak lending is having an impact on our net interest margins. After seeing some lending traction late in the quarter, we are hopeful that we can carry that momentum into the second quarter as the economy continues to slowly heal. We are confident in our ability to manage through this environment in part due to our efficient management of noninterest expenses."

Shareholders' equity increased to $28.1 million at March 31, 2013 compared to $27.9 million at December 31, 2012. The book value of NIDB stock was $22.64 per common share as of March 31, 2013. The number of outstanding common shares was 1,239,946. The last reported trade of the stock on April 12, 2013 was $18.00 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 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.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		December 31,
	2013		2012
Interest-earning cash and cash equivalents	$	14,067,720	$	16,687,647
Noninterest earning cash and cash equivalents	2,169,388		3,997,988
Total cash and cash equivalents	16,237,108		20,685,635
Interest-earning time deposits	6,400,000		5,910,000
Securities available for sale	76,303,178		71,353,159
Securities held to maturity	1,175,934		1,326,984
Loans held for sale	406,350		1,549,475
Loans receivable, net of allowance for loan loss March 31, 2013 $4,179,533 and December 31, 2012 $3,846,001	150,964,446		154,746,404
Accrued interest receivable	911,285		929,061
Premises and equipment	3,016,298		2,989,226
Investments in limited liability partnerships	54,828		74,625
Cash surrender value of life insurance	7,322,856		7,261,343
Other assets	3,737,764		4,577,142
*Total Assets*	$	266,530,047	$	271,403,054
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits	18,721,231		20,123,659
Interest bearing deposits	192,580,889		191,462,228
Borrowed Funds	24,152,844		28,902,484
Accrued interest payable and other liabilities	3,006,823		2,995,529
*Total Liabilities*	238,461,787		243,463,900

Retained earnings – substantially restricted	28,068,260		27,939,154
*Total Liabilities and Shareholders' Equity*	$	266,530,047	$		271,403,054


CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	March 31,
	2013		2012
Total interest income	$	2,467,508	$	2,923,939
Total interest expense		373,199		625,090
Net interest income	$	2,094,309	$	2,298,849
Provision for loan losses		300,000		300,000
Net interest income after provision for loan losses	$	1,794,309	$	1,998,849
Service charges on deposit accounts		122,640		138,180
Net loss on sale of securities		(618)		-
Net gain on sale of loans		179,194		235,591
Net gain (loss) on sale of repossessed assets		18,346		(23,623)
Brokerage fees		114,297		113,546
Increase in cash surrender value of life insurance		61,513		62,213
Other income		165,184		157,680
Total noninterest income	$	660,556	$	683,587
Salaries and employee benefits		885,154		874,755
Occupancy		274,347		236,158
Data processing		196,378		216,467
Deposit insurance premiums		60,000		60,000
Professional fees		70,474		111,745
Correspondent bank charges		29,771		30,421
Other expense		213,045		196,661
Total noninterest expenses	$	1,729,169	$	1,726,207
Income before income tax expenses	$	725,696	$	956,229
Income tax expense		178,568		262,521
Net Income	$	547,128	$	693,708

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
	Three Months Ended March 31,
	2013			2012
Basic Earnings per common share	0.44			0.56
Dilutive Earnings per share	0.44			0.56
Net interest margin	3.36%			3.80%
Return on average assets	0.82%			1.07%
Return on average equity	7.79%			10.51%
Efficiency ratio	62.77%			57.88%
Average shares outstanding- primary	1,235,720			1,233,870
Average shares outstanding- diluted	1,235,978			1,234,489
Allowance for loan losses:
Balance at beginning of period	$		3,846,021	$		4,061,508
Charge-offs:
One-to-four family	11,346			71,320
Commercial real estate	-			45,566
Land/land development	-			653,451
Commercial	-			176,345
Consumer	80,104			7,713
Gross charge-offs	91,450			954,395
Recoveries:
One-to-four family	1,474			1,349
Commercial real estate	72,249			-
Land/land development	-			-
Commercial	25,025			-
Consumer	26,214			32,457
Gross recoveries	124,962			33,806
Net charge-offs / (recoveries)	(33,512)			920,589
Additions charged to operations	300,000			300,000
Balance at end of period	$		4,179,533	$		3,440,919

Net loan charge-offs / (recoveries) to average loans (1)	(0.09%)			2.04%

Nonperforming assets (000's)	At March 31,			At December 31,
Loans:	2013			2012
Non-accrual	$	7,194		$			5,464
Past 90 days or more and still accruing	-			-
Troubled debt restructured	1,662			3,347
Total nonperforming loans	8,856			8,811
Real estate owned	1,362			1,719
Other repossessed assets	17			-
Total nonperforming assets	$	10,235		$			10,530

Nonperforming assets to total assets	3.89%			3.88%
Nonperforming loans to total loans	5.71%			5.56%
Allowance for loan losses to nonperforming loans	47.20%			43.65%
Allowance for loan losses to net loans receivable	2.69%			2.43%


	At March 31,
	2013			2012

Stockholders' equity as a % of total assets	10.53%			10.08%
Book value per share	$	22.64		$	21.39
Common shares outstanding- EOP	1,239,946			1,239,946

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