Northeast Indiana Bancorp, Inc. Announces Record Quarterly Earnings

Rhea-AI Summary

Northeast Indiana Bancorp, Inc. (NIDB) reported a net income of $1.89 million for Q1 2021, a significant increase of 83.2% from $1.03 million in Q1 2020. Earnings per share rose to $1.58 from $0.86 year-over-year. Total assets climbed to $406.3 million, reflecting a 3.8% increase. Total loans reached $269.3 million and deposits grew to $314.7 million. Shareholders' equity rose to $46 million with a book value of $38.22 per share. The Bank supported small businesses by securing approximately $25 million in PPP loans for over 300 clients.

Positive

• Net income increased by $860,000, or 83.2%, year-over-year.
• Return on average assets (ROA) improved to 1.88% compared to 1.16% in the prior year.
• Return on average equity (ROE) rose to 14.87% from 9.86% in the previous year.
• Total assets grew by $15 million, a 3.8% increase.
• Total loans increased by $5.1 million, or 1.9%.

Negative

• None.

HUNTINGTON, Ind., April 13, 2021 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced net income of $1.89 million ($1.58 per diluted common share) for the first quarter ended March 31, 2021.  This earnings level was an increase of $860,000 or 83.2% when compared to earnings from the quarter ended March 31, 2020 of $1.03 million ($0.86 per diluted common share).  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 14.87% compared to an ROA of 1.16% and an ROE of 9.86% for the prior year quarter ended March 31, 2020.       

Total assets increased $15.0 million or 3.8% to $406.3 million at March 31, 2021 compared to total assets of $391.3 million at December 31, 2020.  Total loans increased $5.1 million or 1.9% to $269.3 million at March 31, 2021 compared to total loans of $264.2 million at December 31, 2020.  Total deposits increased $17.7 million or 6.0% to $314.7 million at March 31, 2021 compared to $297.0 million at December 31, 2020.    

Shareholders' equity increased $300,000 to $46.0 million at March 31, 2021 compared to $45.7 million at December 31, 2020.  The book value of NIDB stock increased $0.49 to $38.22 per common share as of March 31, 2021 compared to $37.73 at December 31, 2030.  The number of outstanding common shares was 1,202,985.  The last reported trade of the stock on April 12, 2021 was $42.00 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 quarter ended March 31, 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 also continue to work with clients, who received PPP loans in 2020, on forgiveness applications.

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	March 31, 2021		December  31, 2020
Interest-earning cash and cash equivalents	$	14,118,528	$	12,397,471
Noninterest earning cash and cash equivalents	3,639,359		2,311,822
Total cash and cash equivalents	17,757,887		14,709,293
Interest-earning time deposits	2,946,000		3,681,000
Securities available for sale	82,483,945		78,418,462
Securities held to maturity	11,298,326		9,442,271
Loans held for sale	1,457,450		137,000
Loans receivable, net of allowance for loan loss March 31, 2021 $3,974,475 and December 31, 2020 $3,851,897	269,293,761		264,220,486
Accrued interest receivable	1,514,335		1,516,929
Premises and equipment	5,591,737		5,282,884
Investments in limited liability partnerships	1,753,334		1,828,334
Cash surrender value of life insurance	10,136,074		10,071,443
Other assets	2,035,848		1,969,048
Total Assets	$	406,268,697	$	391,277,150
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits	60,323,371		46,257,438
Interest bearing deposits	254,331,424		250,700,577
Borrowed Funds	41,093,101		45,805,419
Accrued interest payable and other liabilities	4,540,509		2,852,005
Total Liabilities	360,288,405		345,615,439
Retained earnings – substantially restricted	45,980,292		45,661,711
Total Liabilities and Shareholders' Equity	$	406,268,697	$		391,277,150

CONSOLIDATED STATEMENTS OF INCOME
	Three Months Ended
	March 31,
	2021		2020
Total interest income	$	3,984,611	$	3,772,563
Total interest expense		515,909		944,368
Net interest income	$	3,468,702	$	2,828,195
Provision for loan losses		120,000		220,000
Net interest income after provision for loan losses	$	3,348,702	$	2,608,195
Service charges on deposit accounts		150,822		186,039
Interchange fees		157,127		146,906
Net gain on sale of loans		629,489		277,171
Net loss on sale of repossessed assets		-		(18,186)
Brokerage fees		77,337		56,760
Increase in cash surrender value of life insurance		64,631		57,350
Other income		148,302		144,388
Total noninterest income	$	1,227,708	$	850,428
Salaries and employee benefits		1,130,162		1,296,191
Occupancy		271,275		245,504
Data processing		324,992		270,101
Deposit insurance premiums		24,500		20,000
Professional fees		94,284		64,436
Advertising and marketing fees		56,597		55,603
Correspondent bank charges		25,604		32,735
Other expense		310,424		269,671
Total noninterest expenses	$	2,237,838	$	2,254,241
Income before income tax expenses	$	2,338,572	$	1,204,382
Income tax expense		445,664		171,083
Net Income	$	1,892,908	$	1,033,299

NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
	Three Months Ended March 31,
	2021		2020
Basic Earnings per common share	1.58		0.86
Dilutive Earnings per share	1.57		0.86
Net interest margin	3.72%		3.40%
Return on average assets	1.88%		1.16%
Return on average equity	14.87%		9.86%
Efficiency ratio	47.65%		61.28%
Average shares outstanding- primary	1,200,351		1,201,805
Average shares outstanding- diluted	1,200,618		1,201,805
Allowance for loan losses:
Balance at beginning of period	$	3,851,897	$	3,191,605
Charge-offs:
One-to-four family	-		17,952
Commercial real estate	-		-
Land/land development	-		-
Commercial	-		-
Consumer	50,261		33,443
Gross charge-offs	50,261		51,395
Recoveries:
One-to-four family	1,479		903
Commercial real estate	-		-
Land/land development	-		-
Commercial	390		54,000
Consumer	50,969		28,473
Gross recoveries	52,839		83,376
Net charge-offs/(recoveries)	(2,578)		(31,981)
Additions charged to operations	120,000		220,000
Balance at end of period	$	3,974,475	$	3,443,586
Net loan charge-offs / (recoveries)to average loans (1)	(0.00%)		(0.05%)
Nonperforming assets (000's)	At March 31,		At December 31,
Loans:	2021		2020
Non-accrual	$	4,538	$	5,034
Past 90 days or more and still accruing	-		-
Troubled debt restructured	364		374
Total nonperforming loans	4,902		5,408
Real estate owned	5		5
Other repossessed assets	-		-
Total nonperforming assets	$	4,907	$	5,413
Nonperforming assets to total assets	1.21%		1.38%
Nonperforming loans to total loans	1.79%		2.02%
Allowance for loan losses to nonperforming loans	81.07%		71.23%
Allowance for loan losses to net loans receivable	1.48%		1.46%
	At March 31,
	2021		2020
Stockholders' equity as a % of total assets	11.32%		11.81%
Book value per share	$       38.22		$          35.43
Common shares outstanding- EOP	1,202,985		1,210,379

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

 

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SOURCE Northeast Indiana Bancorp, Inc.