Northeast Indiana Bancorp, Inc. Announces Record Annual Earnings And Quarterly Earnings

Rhea-AI Summary

Northeast Indiana Bancorp (NIDB) reported a remarkable 19.5% increase in annual earnings for 2020, totaling $5.6 million or $4.65 per diluted share, compared to $4.7 million in 2019. This achievement marks the highest earnings level in the company's history. The total assets increased by 10.6% to $391.3 million, while net loans rose to $264.2 million. Total deposits surged 17.7% to $297 million. The company also paid out $2.5 million in dividends, including a $1.00 special cash dividend. Quarterly earnings for Q4 2020 also rose by 28.9%, totaling $1.5 million.

Positive

• Annual earnings increased by 19.5% to $5.6 million, highest ever for the company.
• Total assets rose to $391.3 million, up 10.6% from 2019.
• Total deposits increased by 17.7% to $297 million.
• Paid $2.5 million in cash dividends, including a $1.00 special cash dividend.
• Q4 2020 earnings rose by 28.9% to $1.5 million.

Negative

• Accrued $550,000 in pension expenses, affecting earnings.

HUNTINGTON, Ind., Feb. 5, 2021 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced earnings increased $914,000 or 19.5% to $5.6 million ($4.65 per diluted common share) for the full year 2020 when compared to full year 2019 earnings of $4.7 million ($3.91 per diluted common share).  2020 annual earnings represent the highest earnings level ever recorded for the Company.  The full year 2020 earnings equates to a return on average assets of 1.44% and a return on average equity of 12.63% compared to an ROA of 1.33% and an ROE of 11.76% for the full year 2019.

Total assets increased $37.4 million or 10.6% to $391.3 million at December 31, 2020 compared to December 31, 2019 assets of $353.9 million.  Total net loans increased $10.7 million or 4.2% to $264.2 million at December 31, 2020 from $253.5 million at December 31, 2019.  Total deposits increased $44.7 million or 17.7% to $297.0 million at December 31, 2020 from $252.3 million at December 31, 2019.  Total borrowings decreased $11.4 million or 19.9% to $45.8 million at December 31, 2020 compared to December 31, 2019 borrowings of $57.2 million.    

The Company paid out cash dividends of $2.5 million to shareholders during the year ended December 31, 2020 including roughly $1.2 million from a Special Cash Dividend ($1.00 per common share) that was paid to shareholders in December 2020 for the 6^th year in a row of Special Cash Dividends.  The book value of NIDB stock was $37.73 per common share as of December 31, 2020.  The Company's stock closed at $40.00 per common share on December 31, 2020.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "2020 was a challenging year for everyone.  I'm pleased with how our team stepped up to serve our customers and our communities."  Zahn continues, "FFSB was able to achieve record earnings while helping commercial customers secure much needed relief and homeowners obtain low interest rate mortgages."

First Federal Savings Bank was a source of strength to small business clients and non-profits in Northeast Indiana during 2020.  The Bank participated in the SBA's Paycheck Protection Program ("PPP") and helped over 400 clients receive roughly $40.0 million in PPP funding.  We have also begun helping clients navigate the second round of the PPP program for first and second draw requests.  

First Federal Savings Bank had record 1-4 Family mortgage production of $92.5 million for the full year 2020.  This was an increase of $56.8 million or 159.1% compared to 1-4 Family mortgage production of $35.7 million for the full year 2019.  These efforts help our retail clients through lower monthly payments and lower interest over the life of their mortgage loans.  We anticipate mortgage production to remain at elevated levels at least over the next three months if not longer.

The Company also announced quarterly earnings for the three months ended December 31, 2020 increased by $331,000 or 28.9% to $1.5 million ($1.23 per diluted common share) when compared to earnings for the three months ended December 31, 2019 of $1.1 million ($0.96 per diluted common shares).  We also accrued $550,000 in pension expense during the quarter ended December 31, 2020 as we prepare to transition our frozen multi-employer defined benefit pension plan to a qualified successor plan during the first quarter of 2021.  Earnings would have been roughly $410,000 higher, net of taxes, without this non-recurring entry.   The current quarter's earnings equates to an ROA of 1.49% and an ROE of 12.90% compared to an ROA of 1.28% and an ROE of 11.05% for the prior year quarter ended December 31, 2019.                                     

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.                        

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
ASSETS					December 31, 2020				December  31, 2019
Interest-earning cash and cash equivalents					$	12,397,471			$		8,352,340
Noninterest earning cash and cash equivalents					2,311,822				2,863,471
Total cash and cash equivalents					14,709,293				11,215,811
Interest-earning time deposits					3,681,000				3,681,000
Securities available for sale					78,418,462				65,001,858
Securities held to maturity					9,442,271				1,044,197
Loans held for sale					137,000				134,000
Loans receivable, net of allowance for loan loss Dec. 31, 2020 $3,851,897 and Dec. 31, 2019 $3,191,605					264,220,486				253,461,826
Accrued interest receivable					1,516,929				1,242,788
Premises and equipment					5,282,884				4,971,271
Investments in limited liability partnerships					1,828,334				2,128,334
Cash surrender value of life insurance					10,071,443				8,839,193
Other assets					1,969,048				2,203,348
Total Assets					$	391,277,150			$		353,923,626
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits					46,257,438				30,011,306
Interest bearing deposits					250,700,577				222,271,145
Borrowed Funds					45,805,419				57,237,450
Accrued interest payable and other liabilities					2,852,005				3,086,817
Total Liabilities					345,615,439				312,606,718
Retained earnings – substantially restricted					45,661,711				41,316,908
Total Liabilities and Shareholders' Equity					$	391,277,150			$			353,923,626
CONSOLIDATED STATEMENTS OF INCOME
	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2020		2019		2020			2019
Total interest income	$	4,115,656	$	3,888,547	$		15,449,622	$		15,995,780
Total interest expense		619,374		1,020,391			3,041,269			4,335,592
Net interest income	$	3,496,282	$	2,868,156	$		12,408,353	$		11,660,188
Provision for loan losses		120,000		75,000			580,000			425,000
Net interest income after provision for loan losses	$	3,376,282	$	2,793,156	$		11,828,353	$		11,235,188
Service charges on deposit accounts		190,312		202,459			659,683			742,279
Interchange fees		150,561		149,117			569,959			592,966
Net gain (loss) on sale of securities		-		-			-			91,526
Net gain on sale of loans		874,069		272,788			2,715,931			920,900
Net gain (loss) on sale of repossessed assets		-		(12,047)			(16,535)			(4,439)
Brokerage fees		47,501		51,854			189,633			216,823
Increase in cash surrender value of life insurance		62,731		56,375			232,250			225,500
Other income		90,884		99,285			276,408			634,706
Total noninterest income	$	1,416,058	$	819,831	$		4,627,329	$		3,420,261
Salaries and employee benefits		1,867,398		1,261,897			5,591,328			5,139,029
Occupancy		263,635		271,594			1,033,583			1,124,854
Data processing		312,385		243,055			1,138,073			962,075
Deposit insurance premiums		21,000		-			99,000			24,000
Professional fees		138,055		81,073			341,229			368,327
Advertising and marketing		63,444		67,630			212,313			256,690
Correspondent bank charges		18,942		36,050			109,344			145,909
Other expense		324,403		312,622			1,171,571			1,156,107
Total noninterest expenses	$	3,009,262	$	2,273,921	$		9,696,441	$		9,176,991
Income before income tax expense	$	1,783,078	$	1,339,066	$		6,759,241	$		5,478,458
Income tax expense		307,137		193,761			1,159,619			792,964
Net Income	$	1,475,941	$	1,145,305	$		5,599,622	$		4,685,494

 

 

NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
	Three Months Ended                        December 31,						Twelve Months Ended                December 31,
	2020				2019		2020		2019
Basic Earnings per common share	1.23				0.96		4.65		3.91
Dilutive Earnings per share	1.23				0.96		4.64		3.91
Net interest margin	3.76%				3.43%		3.41%		3.52%
Return on average assets	1.49%				1.28%		1.44%		1.33%
Return on average equity	12.90%				11.05%		12.63%		11.76%
Efficiency Ratio	61.26%				61.66%		56.92%		60.85%
Average shares outstanding - primary	1,201,827				1,198,827		1,204,352		1,197,629
Average shares outstanding - diluted	1,201,827				1,198,827		1,205,602		1,198,154
Allowance for loan losses:
Balance at beginning of period	$		3,781,578		$	3,094,673	$	3,191,605	$		2,856,319
Charge-offs:
One-to-four family	-				-		17,952		41,961
Commercial real estate	-				-		13,865		73,705
Land/land development	-				-		-		-
Commercial	13,865				52,725		-		77,725
Consumer	53,434				55,138		137,577		208,170
Gross charge-offs	67,299				107,863		169,394		401,561
Recoveries:
One-to-four family	1,411				43,406		4,242		46,066
Commercial real estate	-				-		-		64,040
Land/land development	-				-		-		-
Commercial	691				63,000		106,609		86,649
Consumer	15,516				23,389		138,835		115,092
Gross recoveries	17,618				129,795		249,686		311,847
Net charge-offs / recoveries	49,681				(21,932)		(80,292)		89,714
Additions charged to operations	120,000				75,000		580,000		425,000
Balance at end of period	$		3,851,897		$	3,191,605	$	3,851,897	$		3,191,605
Net loan charge-offs (recoveries) to average loans (1)	0.07%				(0.03%)		(0.03%)		0.04%
Nonperforming assets (000's)	At December 31,				At September 30,		At June 30,		At December 31,
Loans:	2020				2020		2020		2019
Non-accrual	$		5,034		$	5,501	$	6,511	$		6,173
Past 90 days or more and still accruing	-				-		-		-
Troubled debt restructured	374				381		448		468
Total nonperforming loans	5,408				5,882		6,959		6,641
Real estate owned	5				5		5		262
Other repossessed assets	-				-		-		-
Total nonperforming assets	$		5,413		$	5,887	$	6,964	$		6,903
Nonperforming assets to total assets	1.38%			1.50%			1.42%		1.95%
Nonperforming loans to total loans	2.02%			2.13%			2.48%		2.59%
Allowance for loan losses to nonperforming loans	71.23%			64.30%			52.66%		48.07%
Allowance for loan losses to total receivable	1.46%			1.39%			1.32%		1.26%
	At December 31,
	2020				2019
Stockholders' equity as a % of total assets	11.67%				11.67%
Book value per share	$	37.73			$	34.25
Common shares outstanding- EOP	1,210,327				1,206,327
(1) Ratios for the three-month periods are annualized.

 

 

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SOURCE Northeast Indiana Bancorp, Inc.

FAQ

What were the earnings for Northeast Indiana Bancorp in 2020?

Northeast Indiana Bancorp reported earnings of $5.6 million for 2020, a 19.5% increase from 2019.

How much did NIDB's total assets grow in 2020?

Total assets of NIDB grew by 10.6% to $391.3 million in 2020.

What was the quarterly earnings increase for NIDB in Q4 2020?

In Q4 2020, NIDB's earnings increased by 28.9% to $1.5 million.

Did NIDB pay dividends in 2020?

Yes, NIDB paid out $2.5 million in cash dividends in 2020, including a special cash dividend.

What impact did the pension expense have on NIDB's earnings?

The pension expense of $550,000 during Q4 2020 reduced NIDB's potential earnings by roughly $410,000.