NORTHEAST INDIANA BANCORP, INC. ANNOUNCES FOURTH QUARTER AND ANNUAL EARNINGS

Rhea-AI Summary

Northeast Indiana Bancorp, Inc. (NIDB) reported a net income of $6.6 million for 2022, a decrease from $7.3 million in 2021, resulting in diluted earnings of $5.46 per share. The company's return on average assets (ROA) was 1.54%, and return on average equity (ROE) was 14.90%, down from 1.77% and 15.31% respectively in 2021. The decline is attributed to a $1.4 million reduction in gains from mortgage loan sales, amid rising interest rates impacting mortgage production. However, net interest income rose by $1.1 million. Total assets increased by $27.9 million to $445.5 million, with loans up 17% to $320.8 million. Despite this, stockholder equity fell to $43.1 million due to unrealized losses in the investment portfolio.

Positive

• Net interest income increased by $1.1 million in 2022.
• Total assets rose by $27.9 million to $445.5 million.
• Net loans increased by 17% to $320.8 million.
• First Federal Savings Bank ranked #62 on American Banker's Top 200 Community Banks list.
• Maintained status on the Dividend Champions List, with 28 consecutive years of dividend increases.

Negative

• Net income decreased from $7.3 million in 2021 to $6.6 million in 2022.
• ROA declined from 1.77% to 1.54% and ROE from 15.31% to 14.90%.
• Reduction of $1.4 million in gain on sale of mortgage loans.
• Stockholder's equity decreased by $5.6 million due to unrealized losses.

HUNTINGTON, Ind., Jan. 20, 2023 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB:  NIDB), the parent company of First Federal Savings Bank, today announced net income for the full year of 2022 was $6.6 million, or $5.46 per diluted common share, compared to net income of $7.3 million, or $6.08 per diluted common share for the full year of 2021.  The annual earnings of 2022 equate to a return on average assets (ROA) ratio of 1.54% and a return on average equity (ROE) ratio of 14.90% compared to ROA of 1.77% and ROE of 15.31% for the full year of 2021. 

Net income for the fourth quarter ended December 31, 2022 was $1.6 million, or $1.29 per diluted common share, compared to net income of $1.5 million, or $1.28 per diluted common share for the fourth quarter ended December 31, 2021.  The current quarter earnings equate to an annualized ROA of 1.42% and an annualized ROE of 14.84% compared to an annualized ROA of 1.44% and an annualized ROE of 12.54% for the fourth quarter ended December 31, 2021. 

The declines in net income are primarily related to a reduction in gain on sale of mortgage loans of $1.4 million in 2022 compared to the same period in 2021.  Mortgage production declined during 2022 compared to 2021 as interest rates increased quickly due to actions taken by the Federal Reserve to mitigate inflation.  Partially offsetting this decline was an increase in net interest income of $1.1 million in 2022 compared to the same period in 2021.

Total Assets increased $27.9 million to $445.5 million at December 31, 2022 compared to $417.7 million at December 31, 2021.  This increase was primarily due to net loans increasing $46.5 million, or 17.0% in 2022, to $320.8 million as of December 31, 2022 compared to $274.3 million as of December 31, 2021. This increase was partially reduced by a $11.8 million reduction in the market value of the investment portfolio due to the volatility of interest rates during 2022.  Total deposits increased $24.9 million, or 7.3% in 2022, to $366.8 million at December 31, 2022 compared to $341.9 million at December 31, 2021.  Stockholder's equity decreased $5.6 million to $43.1 million at December 31, 2022 compared to $48.7 million at December 31, 2021.  This decrease was a result of a decline in accumulated other comprehensive income by $9.2 million in 2022 due to unrealized losses in the investment portfolio.  The book value of NIDB's stock was $35.80 per common share and tangible common equity ratio was 9.68% as of December 31, 2022. 

In the current year, Northeast Indiana Bancorp and First Federal Savings Bank have been recognized for its performance.  First Federal Savings Bank was named to American Banker Magazine's Top 200 Community Banks for the 11th consecutive year for 2021. The magazine qualifies banks for this listing if they have less than $2 billion in total assets and are publicly traded. FFSB came in at #62 on this year's list of the top 200 publicly traded community banks. This is a 16-spot improvement from #78 in 2020. The magazine ranked the institutions based on the profitability metric, Return on Average Equity, over a 3-year period. Only 12 banks from the state of Indiana made this elite list and First Federal Savings Bank ranked 4th in the State.

In addition, Northeast Indiana Bancorp, Inc., the holding company for First Federal Savings Bank, maintained its position on the Dividend Champions List.  To achieve Champion status, a company must increase its dividend payments to its shareholders for 25 consecutive years.  Northeast Indiana Bancorp is one of 141 companies in the United States to achieve this status and one of four companies from Indiana.  With the latest dividend increase in the fourth quarter of 2022, Northeast Indiana Bancorp has increased dividends 28 years in a row.

Michael S. Zahn, President and CEO, commented, "We are proud of our performance in 2022 and the recognitions we have received.  Our employees make a difference every day for the benefit of our customers and our communities. Our goal is to continue to enhance shareholder value and benefit the communities we serve."                                                                        

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 six full-service Indiana offices in Huntington (2), Warsaw (2) 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
		December 31,	December 31,
Balance Sheet (Unaudited)		2022	2021
			(Audited)
Assets
Non-interest earning cash and cash equivalents		$          3,141,705	$           3,595,989
Interest-earning cash and cash equivalents		747,920	12,185,155
Total cash and cash equivalents		3,889,625	15,781,144
Interest-earning time deposits		1,230,000	2,210,000
Securities available for sale		78,273,337	86,644,434
Securities held to maturity		12,062,446	11,916,667
Loans held for sale		189,600	538,635
Loans, gross		324,752,497	278,265,486
Allowance for loan losses		(3,996,619)	(3,998,392)
Loans, net		320,755,878	274,267,094
Accrued interest receivable		1,923,986	1,489,036
Premises and equipment		7,254,951	6,937,418
FHLB Stock		2,101,600	2,426,500
Investment in limited partnerships		1,228,334	1,528,334
Cash surrender value of life insurance		11,629,618	11,331,941
Real estate owned and other repossessed assets		-	-
Other assets		4,988,219	2,585,660
Total Assets		$     445,527,594	$      417,656,863
Liabilities and Stockholders' Equity
Non-interest bearing deposits		$       53,232,315	$        56,435,410
Interest bearing deposits		313,584,014	285,513,161
Borrowed funds		32,000,000	23,001,166
Accrued interest payable and other liabilities		3,584,163	4,013,574
Total Liabilities		402,400,492	368,963,311
Stockholders' equity		43,127,102	48,693,552
Total Liabilities and Stockholders' Equity		$     445,527,594	$      417,656,863
		Three months ended				Twelve months ended
		December 31,	September 30,	December 31,		December 31,	December 31,
Income Statement (Unaudited)		2022	2022	2021		2022	2021
Net interest income
Total interest income		$         5,071,415	$          4,456,152	$         4,104,650		$    17,551,740	$    16,353,194
Total interest expense		1,120,123	509,035	724,329		2,244,786	2,107,592
Net interest income		3,951,292	3,947,117	3,380,321		15,306,954	14,245,602
Provision for loan losses		-	-	-		-	120,000
Net interest income after provision for loan losses		3,951,292	3,947,117	3,380,321		15,306,954	14,125,602
Non-interest income
Service charges on deposit accounts		198,715	201,818	184,310		741,330	673,080
Interchange fees		193,610	201,646	195,678		784,129	773,910
Loan servicing fees		62,712	98,371	261,408		354,009	358,410
Net gain on sale of loans		66,083	114,804	407,182		613,364	1,972,217
Net loss on sale of repossessed assets		-	-	(5,000)		-	(7,954)
Brokerage fees		41,034	51,158	59,556		203,357	251,429
Increase in cash surrender value of life insurance		74,955	74,604	66,604		297,677	260,498
Other income		102,248	80,456	105,232		350,771	390,525
Total non-interest income		739,357	822,857	1,274,970		3,344,637	4,672,115
Non-interest expense
Salaries and employee benefits		1,513,293	1,510,552	1,683,090		5,768,201	5,412,488
Occupancy		383,944	372,801	285,046		1,368,039	1,073,356
Data processing		371,655	371,686	322,827		1,461,156	1,342,766
Deposit insurance premiums		28,500	28,500	25,500		116,000	101,000
Professional fees		138,903	117,130	95,581		479,529	354,263
Advertising and marketing fees		89,021	83,237	64,776		268,029	224,336
Correspondent bank charges		32,864	32,669	22,129		122,585	102,369
Other expense		281,403	307,363	313,220		1,199,405	1,246,011
Total non-interest expense		2,839,583	2,823,938	2,812,169		10,782,944	9,856,589
Income before income taxes		1,851,066	1,946,036	1,843,122		7,868,647	8,941,128
Income tax expense		298,062	323,085	306,031		1,316,051	1,644,000
Net income		$         1,553,004	$          1,622,951	$         1,537,091		$      6,552,596	$      7,297,128
		Three months ended				Twelve months ended
		December 31,	September 30,	December 31,		December 31,	December 31,
Selected Financial Ratios and Other Financial Data (Unaudited)		2022	2022	2021		2022	2021
Average shares outstanding - basic		1,201,442	1,199,885	1,198,285		1,200,051	1,198,314
Average shares outstanding - diluted		1,201,491	1,199,957	1,198,410		1,200,204	1,199,630
Basic earnings per share		$                   1.29	$                    1.35	$                1.28		$             5.46	$             6.09
Diluted earnings per share		$                   1.29	$                    1.35	$                1.28		$             5.46	$             6.08
Net interest margin		3.73 %	3.88 %	3.36 %		3.76 %	3.67 %
Return on average assets		1.42 %	1.53 %	1.44 %		1.54 %	1.77 %
Return on average equity		14.84 %	15.09 %	12.54 %		14.90 %	15.31 %
Efficiency ratio		60.54 %	59.20 %	60.41 %		57.81 %	52.10 %
Allowance for loan losses:
Balance, beginning of period		$         4,024,366	$          3,982,194	$       4,013,967		$    3,998,392	$    3,851,897
Charge-offs:
One-to-four family		-	-	-		-	15,194
Commercial real estate		-	-	-		-	-
Land/land development		-	-	-		-	-
Commercial		-	-	-		-	-
Consumer		60,866	21,604	38,699		139,976	113,891
Gross charge-offs		60,866	21,604	38,699		139,976	129,085
Recoveries:
One-to-four family		13,099	661	935		15,689	11,315
Commercial real estate		40	108	111		478	19,393
Land/land development		-	-	-		-	-
Commercial		185	40,000	2,550		49,910	3,540
Consumer		19,795	23,007	19,528		72,126	121,332
Gross recoveries		33,119	63,776	23,124		138,203	155,580
Net charge-offs (recoveries)		27,747	(42,172)	15,575		1,773	(26,495)
Provision for loan losses		-	-	-		-	120,000
Balance, end of period		$          3,996,619	$           4,024,366	$       3,998,392		$    3,996,619	$    3,998,392
Net loan charge-offs (recoveries) to average loans		0.03 %	-0.06 %	0.02 %		0.00 %	-0.01 %
		As of
		December 31,	September 30,	December 31,
Non-performing assets		2022	2022	2021
Loans:
Non-accrual		$          2,463,911	$           2,683,491	$      2,859,668
Past 90 days or more and still accruing		-	-	-
Troubled debt restructured		525,383	525,383	364,851
Total non-performing loans		2,989,294	3,208,874	3,224,519
Real estate owned		-	-	-
Other repossessed assets		-	-	-
Total non-performing assets		$          2,989,294	$           3,208,874	$      3,224,519
Non-performing assets to total assets		0.67 %	0.75 %	0.77 %
Non-performing loans to gross loans		0.92 %	1.04 %	1.16 %
Allowance for loan losses to non-performing loans		133.70 %	125.41 %	124.00 %
Allowance for loan losses to gross loans		1.23 %	1.30 %	1.44 %
Other financial ratios
Tangible common equity		9.68 %	9.78 %	11.66 %
Book value per share		$                 35.80	$                  34.85	$             40.40
Common shares outstanding		1,204,835	1,205,135	1,205,435
(1) Ratios for three periods are annualized

 

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SOURCE Northeast Indiana Bancorp, Inc.

FAQ

What was the net income of Northeast Indiana Bancorp for 2022?

Northeast Indiana Bancorp reported a net income of $6.6 million for 2022.

How did NIDB’s earnings per share change in 2022 compared to 2021?

Earnings per diluted share decreased from $6.08 in 2021 to $5.46 in 2022.

What is the current return on equity for NIDB?

The return on average equity for Northeast Indiana Bancorp is 14.90% for 2022.

Did NIDB maintain its dividend payments in 2022?

Yes, Northeast Indiana Bancorp maintained its status on the Dividend Champions List, increasing dividends for 28 consecutive years.

How much did total assets increase for NIDB in 2022?

Total assets increased by $27.9 million to $445.5 million in 2022.