HUNTINGTON, Ind., Oct. 11, 2019 /PRNewswire/ — Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income for the nine months ended September 30, 2019 increased $379,000 or 12.0% to $3.54 million ($2.96 per diluted common share), compared to net income of $3.16 million ($2.65 per diluted common share) for the nine months ended September 30, 2018. The current nine months earnings represent a new record for the Company and equates to an annualized ROA of 1.34% and an annualized ROE of 12.01%. This compares to an annualized ROA of 1.31% and an annualized ROE of 11.68% for the nine months ended September 30, 2018.

(PRNewsfoto/Northeast Indiana Bancorp, Inc.)

Net income increased $330,000 or 32.0% to $1.36 million ($1.14 per diluted common share) for the Company’s third quarter ended September 30, 2019 compared to net income of $1.03 million ($0.86 per diluted common share) for the third quarter ended September 30, 2018. The current three months earnings represent a new record for the Company and equates to an annualized return on average assets (ROA) of 1.53% and a return on average equity (ROE) of 13.31%. This compares to an annualized ROA of 1.27% and an annualized ROE of 11.22% for the three months ended September 30, 2018.

«We are very pleased with our record performance this quarter and year to date,» states Michael Zahn, President and CEO of First Federal Savings Bank. Zahn continues, «We continue to see steady growth in both deposits and loans while maintaining strong profitability. The dedication and execution from our team continues to provide excellent financial results.»

Net Loans Receivable have increased $11.3 million or 4.7% to $251.4 million at September 30, 2019 compared to $240.1 million at December 31, 2018. Total Deposits have increased $13.0 million or 5.6% to $246.3 million at September 30, 2019 compared to $233.3 million at December 31, 2018. Shareholder’s equity increased $4.0 million or 10.8% to $41.3 million at September 30, 2019 compared to $37.3 million at December 31, 2018. The book value of NIDB’s stock was $34.28 per common share as of September 30, 2019. The number of outstanding common shares was 1,206,327 as of the same date. The last reported trade of the stock on October 10, 2019 was $39.00 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.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

September 30, 2019

December 31, 2018

Interest-earning cash and cash equivalents

$

10,276,264

$

3,605,610

Noninterest earning cash and cash equivalents

2,787,770

2,685,698

    Total cash and cash equivalents

13,064,034

6,291,308

Interest- earning time deposits

3,681,000

3,436,000

Securities available for sale

63,466,943

63,898,265

Securities held to maturity

1,044,606

1,233,843

Loans held for sale

728,800

453,100

Loans receivable, net of allowance for loan loss September 30, 2019 $3,094,673
and December 31, 2018 $2,856,319

251,392,527

240,075,827

Accrued interest receivable

1,258,858

1,314,404

Premises and equipment

3,864,415

3,988,192

Investments in limited liability partnerships

2,203,334

2,428,334

Cash surrender value of life insurance

8,782,818

8,613,693

Other assets

2,179,901

2,477,748

    Total Assets

$

351,667,236

$

334,210,714

LIABILITIES AND STOCKHOLDERS’ EQUITY

Non-interest bearing deposits

31,568,750

26,751,611

Interest bearing deposits

214,762,649

206,618,957

Borrowed Funds

59,485,134

59,763,974

Accrued interest payable and other liabilities

4,495,034

3,735,912

    Total Liabilities

310,311,567

296,870,454

Retained earnings – substantially restricted

41,355,669

37,340,260

    Total Liabilities and Shareholders’ Equity

$

351,667,236

$

334,210,714

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Nine Months Ended

September 30,

September 30,

2019

2018

2019

2018

Total interest income

$

4,097,681

$

3,560,452

$

12,107,235

$

10,380,320

Total interest expense

1,104,242

848,973

3,315,199

2,283,207

    Net interest income

$

2,993,439

$

2,711,479

$

8,792,036

$

8,097,113

Provision for loan losses

200,000

350,000

    Net interest income after provision for loan losses

$

2,793,439

$

2,711,479

$

8,442,036

$

8,097,113

        Service charges on deposit accounts

190,919

170,016

539,822

491,061

        Interchange Fees

160,982

133,327

443,850

395,271

        Net gain (loss) on sale of securities

(6,510)

91,526

(4,947)

        Net gain on sale of loans

385,842

138,351

648,112

545,420

        Net gain (loss) on sale of repossessed assets

160,982

(5,000)

7,608

(4,851)

        Brokerage fees

41,914

58,804

164,969

178,047

        Increase in cash surrender value of life insurance

56,625

59,876

169,125

173,626

        Other income

252,859

146,532

535,420

397,162

Total noninterest income

$

1,082,631

$

701,906

$

2,600,432

$

2,170,789

    Salaries and employee benefits

1,279,760

1,186,985

3,877,132

3,565,269

    Occupancy

291,719

279,721

853,257

804,954

    Data processing

245,498

293,212

719,020

870,462

    Deposit insurance premiums

14,000

24,000

62,000

    Professional fees

53,695

91,612

287,255

233,507

    Correspondent bank charges

35,306

33,868

109,859

97,101

    Other expense

341,406

323,212

1,032,553

968,578

Total noninterest expenses

$

2,247,384

$

2,222,610

$

6,903,076

$

6,601,871

Income before income tax expense

$

1,628,686

$

1,190,775

$

4,139,392

$

3,666,031

Income tax expense

267,005

159,182

599,203

505,127

Net Income

$

1,361,681

$

1,031,593

$

3,540,189

$

3,160,904

Three Months Ended

September 30,

Nine Months Ended

September 30,

2019

2018

2019

2018

Basic Earnings per common share

1.14

0.86

2.96

2.65

Dilutive Earnings per share

1.14

0.86

2.96

2.65

Net interest margin

3.57%

3.56%

3.55%

3.59%

Return on average assets

1.53%

1.27%

1.34%

1.31%

Return on average equity

13.31%

11.22%

12.01%

11.68%

Efficiency ratio

55.14%

65.11%

60.59%

64.30%

Average shares outstanding- primary

1,198,419

1,195,119

1,197,226

1,194,024

Average shares outstanding- diluted

1,198,586

1,195,286

1,197,926

1,195,724

Allowance for loan losses:

    Balance at beginning of period

$

2,984,907

$

2,808,485

$

2,856,319

$

2,746,523

    Charge-offs:

        One-to-four family

41,961

30,471

41,961

41,072

        Commercial real estate

73,705

        Land/land development

        Commercial

25,000

2,250

        Consumer

67,622

91,814

153,031

184,793

          Gross charge-offs

109,583

122,285

293,698

228,115

    Recoveries:

        One-to-four family

936

474

2,660

1,164

        Commercial real estate

64,040

66,755

        Land/land development

        Commercial

1,581

23,649

7,428

        Consumer

16,832

40,444

91,703

133,363

          Gross recoveries

19,349

40,918

182,052

208,710

    Net charge-offs

90,234

81,367

111,646

19,405

    Additions charged to operations

200,000

350,000

    Balance at end of period

$

3,094,673

$

2,727,818

$

3,094,673

$

2,727,118

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

0.14%

0.14%

0.06%

0.01%

Nonperforming assets (000’s)

At September 30,

At June 30,

At March 31,

At December 31,

    Loans:

2019

2019

2019

2018

        Non-accrual

$

4,952

$

4,970

$

2,291

$

2,674

        Past 90 days or more and still accruing

        Troubled debt restructured

470

530

552

170

          Total nonperforming loans

5,422

5,500

2,843

2,844

    Real estate owned

361

33

    Other repossessed assets

        Total nonperforming assets

$

5,783

$

5,500

$

2,843

$

2,877

    Nonperforming assets to total assets

1.64%

1.53%

0.83%

0.86%

    Nonperforming loans to total loans

2.13%

2.14%

1.14%

1.17%

    Allowance for loan losses to nonperforming loans

57.08%

54.27%

99.30%

100.42%

    Allowance for loan losses to net loans receivable

1.23%

1.18%

1.15%

1.19%

At September 30,

2019

2018

Stockholders’ equity as a % of total assets

11.76%

11.29%

Book value per share

$

34.28

$

30.59

Common shares outstanding- EOP

1,206,327

1,206,327

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

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SOURCE Northeast Indiana Bancorp, Inc.