NORTHEAST INDIANA BANCORP, INC. HUNTINGTON, Ind., Jan. 31, 2020 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced earnings increased $519,000 or 12.4% to $4.7 million ($3.91 per diluted common share) for the full year 2019 when compared to full year 2018 earnings of $4.2 million ($3.49 per diluted common share). 2019 annual earnings represent the highest earnings level ever recorded for the Company. The full year 2019 earnings equates to a return on average assets of 1.33% and a return on average equity of 11.76% compared to an ROA of 1.28% and an ROE of 11.48% for the full year 2018.
Total assets increased $19.7 million or 5.9% to $353.9 million at December 31, 2019 compared to December 31, 2018 assets of $334.2 million. Total net loans increased $13.4 million or 5.6% to $253.5 million at December 31, 2019 from $240.1 million at December 31, 2018. Total deposits increased $18.9 million or 8.1% to $252.3 million at December 31, 2019 from $233.4 million at December 31, 2018. Total borrowings decreased $2.5 million or 4.2% to $57.2 million at December 31, 2019 compared to December 31, 2018 borrowings of $59.7 million.
The Company also announced quarterly earnings for the three months ended December 31, 2019 increased by $139,000 or 13.9% to $1.1 million ($0.96 per diluted common share) when compared to earnings for the three months ended December 31, 2018 of $1.0 million ($0.84 per diluted common shares). The current quarter's earnings equates to an ROA of 1.28% and an ROE of 11.05% compared to an ROA of 1.21% and an ROE of 10.90% for the prior year quarter ended December 31, 2018.
Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "I'm very pleased with our record financial performance in 2019. Embracing our role as a community bank has led to our success. In addition, for the 25th year in row, we were able to increase our dividend to our shareholders as well as provide them with a special dividend for the 5th consecutive year."
The Company paid out cash dividends of $2.1 million to shareholders during the year ended December 31, 2019 including roughly $905,000 from a Special Cash Dividend ($0.75 per common share) that was paid to shareholders in December 2019 for the 5th year in a row of Special Cash Dividends. The book value of NIDB stock was $34.25 per common share as of December 31, 2019. The Company's stock closed at $40.10 per common share on December 31, 2019, an increase of $3.10 or 8.4% compared to the closing stock price of $37.00 per common share on December 31, 2018.
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, 2019 | December 31, 2018 | ||||||||||||||
Interest-earning cash and cash equivalents | $ | 8,352,340 | $ | 3,605,610 | ||||||||||||
Noninterest earning cash and cash equivalents | 2,863,471 | 2,685,698 | ||||||||||||||
Total cash and cash equivalents | 11,215,811 | 6,291,308 | ||||||||||||||
Securities available for sale | 65,001,858 | 63,898,265 | ||||||||||||||
Interest-earning deposits in financial institutions | 3,681,000 | 3,436,000 | ||||||||||||||
Securities held to maturity | 1,044,197 | 1,233,843 | ||||||||||||||
Loans held for sale | 134,000 | 453,100 | ||||||||||||||
Loans receivable, net of allowance for loan loss Dec. 31, 2019 $3,191,605 and Dec. 31, 2018 $2,856,319 | 253,461,826 | 240,075,827 | ||||||||||||||
Accrued interest receivable | 1,242,788 | 1,314,404 | ||||||||||||||
Premises and equipment | 4,971,271 | 3,988,192 | ||||||||||||||
Investments in limited liability partnerships | 2,128,334 | 2,428,334 | ||||||||||||||
Cash surrender value of life insurance | 8,839,193 | 8,613,693 | ||||||||||||||
Other assets | 2,203,348 | 2,477,748 | ||||||||||||||
Total Assets | $ | 353,923,626 | $ | 334,210,714 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
Non-interest bearing deposits | 30,011,306 | 26,751,611 | ||||||||||||||
Interest bearing deposits | 222,271,145 | 206,618,957 | ||||||||||||||
Borrowed Funds | 57,237,450 | 59,763,974 | ||||||||||||||
Accrued interest payable and other liabilities | 3,086,817 | 3,735,912 | ||||||||||||||
Total Liabilities | 312,606,718 | 296,870,454 | ||||||||||||||
Retained earnings – substantially restricted | 41,316,908 | 37,340,260 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 353,923,626 | $ | 334,210,714 | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Total interest income | $ | 3,888,547 | $ | 3,762,659 | $ | 15,995,780 | $ | 14,142,981 | ||||||||
Total interest expense | 1,020,391 | 922,895 | 4,335,592 | 3,206,100 | ||||||||||||
Net interest income | $ | 2,868,156 | $ | 2,839,764 | $ | 11,660,188 | $ | 10,936,881 | ||||||||
Provision for loan losses | 75,000 | 175,000 | 425,000 | 175,000 | ||||||||||||
Net interest income after provision for loan losses | $ | 2,793,156 | $ | 2,664,764 | $ | 11,235,188 | $ | 10,761,881 | ||||||||
Service charges on deposit accounts | 202,459 | 167,744 | 742,279 | 658,805 | ||||||||||||
Interchange fees | 149,117 | 136,009 | 592,966 | 531,280 | ||||||||||||
Net gain (loss) on sale of securities | - | (157,931) | 91,526 | (162,879) | ||||||||||||
Net gain on sale of loans | 272,788 | 499,684 | 920,900 | 1,045,103 | ||||||||||||
Net gain (loss) on sale of repossessed assets | (12,047) | (3,302) | (4,439) | (8,153) | ||||||||||||
Brokerage fees | 51,854 | 38,956 | 216,823 | 217,003 | ||||||||||||
Increase in cash surrender value of life insurance | 56,375 | 57,876 | 225,500 | 231,500 | ||||||||||||
Other income | 99,285 | 177,850 | 634,706 | 575,012 | ||||||||||||
Total noninterest income | $ | 819,831 | $ | 916,886 | $ | 3,420,261 | $ | 3,087,671 | ||||||||
Salaries and employee benefits | 1,261,897 | 1,233,054 | 5,139,029 | 4,798,322 | ||||||||||||
Occupancy | 271,594 | 257,137 | 1,124,854 | 1,062,090 | ||||||||||||
Data processing | 243,055 | 302,361 | 962,075 | 1,172,825 | ||||||||||||
Deposit insurance premiums | - | 24,000 | 24,000 | 86,000 | ||||||||||||
Professional fees | 81,073 | 193,281 | 368,327 | 426,787 | ||||||||||||
Advertising and marketing | 67,630 | 80,673 | 256,690 | 247,615 | ||||||||||||
Correspondent bank charges | 36,050 | 34,124 | 145,909 | 131,225 | ||||||||||||
Other expense | 312,622 | 279,916 | 1,156,107 | 1,081,554 | ||||||||||||
Total noninterest expenses | $ | 2,273,921 | $ | 2,404,546 | $ | 9,176,991 | $ | 9,006,417 | ||||||||
Income before income tax expense | $ | 1,339,066 | $ | 1,177,104 | $ | 5,478,458 | $ | 4,843,135 | ||||||||
Income tax expense | 193,761 | 171,151 | 792,964 | 676,278 | ||||||||||||
Net Income | $ | 1,145,305 | $ | 1,005,953 | $ | 4,685,494 | $ | 4,166,857 | ||||||||
NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) | |||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Basic Earnings per common share | 0.96 | 0.84 | 3.91 | 3.49 | |||||||||||
Dilutive Earnings per share | 0.96 | 0.84 | 3.91 | 3.49 | |||||||||||
Net interest margin | 3.43% | 3.64% | 3.52% | 3.60% | |||||||||||
Return on average assets | 1.28% | 1.21% | 1.33% | 1.28% | |||||||||||
Return on average equity | 11.05% | 10.90% | 11.76% | 11.48% | |||||||||||
Efficiency Ratio | 61.66% | 64.01% | 60.85% | 64.22% | |||||||||||
Average shares outstanding - primary | 1,198,827 | 1,195,527 | 1,197,629 | 1,194,403 | |||||||||||
Average shares outstanding - diluted | 1,198,827 | 1,195,527 | 1,198,154 | 1,195,678 | |||||||||||
Allowance for loan losses: | |||||||||||||||
Balance at beginning of period | $ | 3,094,673 | $ | 2,727,118 | $ | 2,856,319 | $ | 2,746,523 | |||||||
Charge-offs: | |||||||||||||||
One-to-four family | - | - | 41,961 | 41,072 | |||||||||||
Commercial real estate | - | - | 73,705 | - | |||||||||||
Land/land development | - | - | - | - | |||||||||||
Commercial | 52,725 | - | 77,725 | 2,250 | |||||||||||
Consumer | 55,138 | 86,100 | 208,170 | 270,893 | |||||||||||
Gross charge-offs | 107,863 | 86,100 | 401,561 | 314,215 | |||||||||||
Recoveries: | |||||||||||||||
One-to-four family | 43,406 | 1,339 | 46,066 | 2,503 | |||||||||||
Commercial real estate | - | - | 64,040 | 66,754 | |||||||||||
Land/land development | - | - | - | - | |||||||||||
Commercial | 63,000 | - | 86,649 | 7,428 | |||||||||||
Consumer | 23,389 | 38,862 | 115,092 | 172,325 | |||||||||||
Gross recoveries | 129,795 | 40,301 | 311,847 | 249,011 | |||||||||||
Net charge-offs / recoveries | (21,932) | 45,799 | 89,714 | 65,205 | |||||||||||
Additions charged to operations | 75,000 | 175,000 | 425,000 | 175,000 | |||||||||||
Balance at end of period | $ | 3,191,605 | $ | 2,856,319 | $ | 3,191,605 | $ | 2,856,319 | |||||||
Net loan charge-offs (recoveries) to average loans (1) | (0.03%) | 0.08% | 0.04% | 0.03% | |||||||||||
Nonperforming assets (000's) | At December 31, | At September 30, | At June 30, | At December 31, | |||||||||||
Loans: | 2019 | 2019 | 2019 | 2018 | |||||||||||
Non-accrual | $ | 6,173 | $ | 4,952 | $ | 4,970 | $ | 2,674 | |||||||
Past 90 days or more and still accruing | - | - | - | - | |||||||||||
Troubled debt restructured | 468 | 470 | 530 | 170 | |||||||||||
Total nonperforming loans | 6,641 | 5,422 | 5,500 | 2,844 | |||||||||||
Real estate owned | 262 | 361 | - | 33 | |||||||||||
Other repossessed assets | - | - | - | - | |||||||||||
Total nonperforming assets | $ | 6,903 | $ | 5,783 | $ | 5,500 | $ | 2,877 | |||||||
Nonperforming assets to total assets | 1.95% | 1.64% | 1.53% | 0.86% | |||||||||||
Nonperforming loans to total loans | 2.59% | 2.13% | 2.14% | 1.17% | |||||||||||
Allowance for loan losses to nonperforming loans | 48.07% | 57.08% | 54.27% | 100.42% | |||||||||||
Allowance for loan losses to total receivable | 1.26% | 1.23% | 1.18% | 1.19% | |||||||||||
At December 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
Stockholders' equity as a % of total assets | 11.67% | 11.17% | |||||||||||||
Book value per share | $ | 34.25 | $ | 30.95 | |||||||||||
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.
