Northeast Indiana Bancorp, Inc. Announces Record Year To Date And Record Quarterly Earnings

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Jul 15, 2021, 13:55 ET

HUNTINGTON, Ind., July 15, 2021 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income for the six months ended June 30, 2021 increased by $1.34 million or 54.0% to $3.82 million ($3.19 per diluted common share) when compared to net income of $2.48 million ($2.06 per diluted common share) for the six months ended June 30, 2020. The current six months earnings equate to an annualized ROA of 1.91% and a ROE of 15.70% compared to an annualized ROA of 1.31% and an annualized ROE of 11.58% for the six months ended June 30, 2020. The current earnings level represents Record net income for any six-month period ended June 30 in the Company's history.

Net income also increased by $485,000 or 33.6% to $1.93 million ($1.61 per diluted common share) for the Company's second quarter ended June 30, 2021 when compared to net income of $1.44 million ($1.20 per diluted common share) for the second quarter ended June 30, 2020. The current three months earnings equate to an annualized return on average assets (ROA) of 1.88% and a return on average equity (ROE) of 16.29% compared to an annualized ROA of 1.44% and a ROE of 13.24% for the three months ended June 30, 2020. The current quarterly earnings level represents Record net income for any quarterly period in the Company's history.

Total Assets increased $18.6 million or 4.8% to $409.9 million at June 30, 2021 compared to $391.3 million at December 31, 2020. Net loans increased $13.2 million or 5.0% to $277.4 million at June 30, 2021 compared to $264.2 million at December 31, 2020. Total deposits increased $13.1 million or 4.4% to $310.0 million at June 30, 2021 compared to $296.9 million at December 31, 2020. Shareholder's equity increased $2.3 million or 5.0% to $48.0 million at June 30, 2021 compared to $45.7 million at December 31, 2020. The book value of NIDB's stock was $39.87 per common share as of June 30, 2021. The number of outstanding common shares was 1,202,985 as of the same date. The last reported trade of the stock on July 13, 2021, was $43.00 per common share.

First Federal Savings Bank continued to be a source of strength to small business clients and non-profits in Northeast Indiana during the six months ended June 30, 2021. The Bank participated in the SBA's 2021 Paycheck Protection Program ("PPP") and helped over 300 clients secure roughly $25 million in PPP funding. We are now working with 2021 PPP clients on forgiveness applications.

Michael S. Zahn, President and CEO, commented "It gives me great pleasure to report Record year to date and quarterly earnings to our shareholders. I'm incredibly proud to work with a talented team who continue to find ways to solve problems and deliver solutions to our clients with a personal touch. This is the essence of Community Banking."

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*									June 30, 2021						December 31, 2020
Interest-earning cash and cash equivalents									$		9,468,173				$	12,397,471
Noninterest earning cash and cash equivalents									1,897,678						2,311,822
Total cash and cash equivalents									11,365,851						14,709,293
Interest-earning time deposits									2,210,000						3,681,000
Securities available for sale									84,262,952						78,418,462
Securities held to maturity									12,010,518						9,442,271
Loans held for sale									1,116,150						137,000
Loans receivable, net of allowance for loan loss June 30, 2021 $3,987,013 and December 31, 2020 $3,851,897									277,458,123						264,220,486
Accrued interest receivable									1,595,277						1,516,929
Premises and equipment									5,554,232						5,282,884
Investments in limited liability partnerships									1,678,334						1,828,334
Cash surrender value of life insurance									10,200,706						10,071,443
Other assets									2,485,089						1,969,048
*Total Assets*									$		409,937,232				$		391,277,150
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Non-interest bearing deposits									56,179,514						46,257,438
Interest bearing deposits									253,839,751						250,700,577
Borrowed Funds									48,483,160						45,805,419
Accrued interest payable and other liabilities									3,469,634						2,852,005
*Total Liabilities*									361,972,059						345,615,439

Retained earnings – substantially restricted									47,965,173						45,661,711
*Total Liabilities and Shareholder's Equity*									$		409,937,232				$		391,277,150

CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended							Six Months Ended
		June 30,							June 30,
		2021				2020			2021					2020
Total interest income		$		3,882,113		$		3,826,584	$			7,866,724		$			7,599,147
Total interest expense				448,555				782,621				964,464					1,726,985
Net interest income		$		3,433,558		$		3,043,963	$			6,902,260		$			5,872,162
Provision for loan losses				-				120,000				120,000					340,000
Net interest income after provision for loan losses		$		3,433,558		$		2,923,963	$			6,782,260		$			5,532,162
Service charges on deposit accounts				156,294				134,682				307,116					320,719
Interchange Fees				174,960				150,302				332,088					297,208
Net gain on sale of loans				603,135				764,833				1,232,624					1,042,004
Net gain (loss) on sale of repossessed assets				-				1,651				-					(16,535)
Brokerage fees				54,878				39,524				132,215					96,284
Increase in cash surrender value of life insurance				64,631				55,663				129,262					113,013
Other income				129,244				(103,838)				277,544					40,550
Total noninterest income		$		1,183,142		$		1,042,817	$			2,410,849		$			1,893,243
Salaries and employee benefits				1,190,494				1,185,091				2,320,654					2,481,280
Occupancy				254,597				267,496				525,872					513,000
Data processing				344,049				332,081				669,041					602,183
Deposit insurance premiums				25,500				25,500				50,000					45,500
Professional fees				67,477				56,595				161,761					121,030
Advertising and Marketing Fees				38,890				28,146				95,487					83,749
Correspondent bank charges				26,660				26,370				52,263					59,103
Other expense				292,199				296,399				602,626					566,076
Total noninterest expenses		$		2,239,866		$		2,217,678	$			4,477,704		$			4,471,921
Income before income tax expenses		$		2,376,834		$		1,749,102	$			4,715,405		$			2,953,484
Income tax expense				449,105				305,834				894,769					476,917
Net Income		$		1,927,729		$		1,443,268	$			3,820,636		$			2,476,567


	Three Months Ended June 30,									Six Months Ended June 30,
	2021				2020					2021					2020
Basic Earnings per common share	1.61				1.20					3.19					2.06
Dilutive Earnings per share	1.61				1.20					3.19					2.06
Net interest margin	3.67%				3.22%					3.69%					3.31%
Return on average assets	1.88%				1.44%					1.91%					1.31%
Return on average equity	16.29%				13.24%					15.70%					11.58%
Efficiency ratio	48.48%				54.26%					48.08%					57.59%
Average shares outstanding - primary	1,196,785				1,200,327					1,198,558					1,203,066
Average shares outstanding - diluted	1,196,785				1,200,327					1,198,558					1,203,066

Allowance for loan losses:
Balance at beginning of period	$		3,974,475		$		3,443,586			$			3,851,897		$			3,191,605
Charge-offs:
One-to-four family	-				-					-					-
Commercial real estate	15,194				-					15,194					17,952
Land/land development	-				-					-					-
Commercial	-				-					-					-
Consumer	11,828				11,684					62,088					45,127
Gross charge-offs	27,022				11,684					77,282					63,079
Recoveries:
One-to-four family	1,398				511					2,877					1,414
Commercial real estate	10,195				-					10,195					-
Land/land development	-				-					-					-
Commercial	350				51,919					740					105,919
Consumer	27,617				60,488					78,586					88,961
Gross recoveries	39,560				112,918					92,398					196,294
Net charge-offs/(recoveries)	(12,538)				(101,234)					(15,116)					(133,215)
Additions charged to operations	-				120,000					120,000					340,000
Balance at end of period	$		3,987,013		$		3,664,820			$			3,987,013		$			3,664,820

Net loan charge-offs/(recoveries) to average loans (1)	(0.02%)				(0.14%)					(0.01%)					(0.10%)

Nonperforming assets (000's)	At June 30,				At March 31,					At December 31,
Loans:	2021				2021					2020
Non-accrual	$			1,800	$			4,538		$			5,034
Past 90 days or more and still accruing	-				-					-
Troubled debt restructured	362				364					374
Total nonperforming loans	2,162				4,902					5,408
Real estate owned	255				5					5
Other repossessed assets	-				-					-
Total nonperforming assets	$			2,417	$			4,907		$			5,413

Nonperforming assets to total assets	0.59%				1.21%					1.38%
Nonperforming loans to total loans	0.77%				1.79%					2.02%
Allowance for loan losses to nonperforming loans	184.42%				81.07%					71.23%
Allowance for loan losses to net loans receivable	1.44%				1.48%					1.46%

	At June 30,
	2021				2020

Stockholders' equity as a % of total assets	11.70%				10.90%
Book value per share	$			39.87	$		36.49
Common shares outstanding- EOP	1,202,985				1,210,327
(1) Ratios for the three-month periods are annualized.