Northeast Indiana Bancorp, Inc. Announces Record Quarterly And Record Year To Date Earnings

Rhea-AI Summary

Northeast Indiana Bancorp (NIDB) reported a 21.0% increase in net income for Q3 2020, totaling $1.65 million or $1.37 per diluted common share. This marks a record for the company, with an annualized ROA of 1.65% and ROE of 14.33%. Year-to-date net income rose 16.5% to $4.12 million. The bank assisted over 400 clients in obtaining approximately $40.0 million in PPP funding. Loan forbearance requests have decreased, indicating improved borrower conditions, while net loans and deposits increased significantly, enhancing overall financial stability.

Positive

• Net income increased by $285,000 (21.0%) to $1.65 million for Q3 2020.
• Year-to-date net income rose by $583,000 (16.5%) to $4.12 million.
• Annualized ROA improved to 1.65% and ROE to 14.33% for Q3 2020.
• Net Loans Receivable increased by $18.86 million (7.44%) to $272.32 million.
• Total Deposits increased by $40.53 million (16.10%) to $292.81 million.
• Shareholder's equity rose by $4.26 million (10.31%) to $45.58 million.

Negative

• None.

HUNTINGTON, Ind., Oct. 15, 2020 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income increased $285,000 or 21.0% to $1.65 million ($1.37 per diluted common share) for the Company's third quarter ended September 30, 2020 compared to net income of $1.36 million ($1.14 per diluted common share) for the third quarter ended September 30, 2019.  The current three months earnings represent a new record for the Company and equates to an annualized return on average assets (ROA) of 1.65% and a return on average equity (ROE) of 14.33%.  This compares to an annualized ROA of 1.53% and an annualized ROE of 13.31% for the three months ended September 30, 2019.

Net income for the nine months ended September 30, 2020 increased $583,000 or 16.5% to $4.12 million ($3.43 per diluted common share), compared to net income of $3.54 million ($2.96 per diluted common share) for the nine months ended September 30, 2019.  The current nine months earnings represent a new record for the Company and equates to an annualized ROA of 1.43% and an annualized ROE of 12.54%.  This compares to an annualized ROA of 1.34% and an annualized ROE of 12.01% for the nine months ended September 30, 2019.

First Federal Savings Bank has been 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.  The business banking team is now helping clients maneuver PPP Forgiveness applications.  We anticipate that process being completed during the fourth quarter of 2020 and into the first quarter of 2021. 

First Federal Savings Bank had continued strong 1-4 Family mortgage production during the quarter ended September 30, 2020.  The Bank originated mortgage loans in the amount of $24.6 million for the current quarter after record mortgage production of $33.3 million for the quarter ended June 30, 2020.  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 these elevated levels at least over the next three months if not longer.

First Federal Savings Bank has also worked with our borrowers on loan forbearance requests under the CARES Act.  We initially executed forbearance requests on roughly $36.0 million (13% of loan portfolio) in loan balances for an initial three-month period during the quarter ended June 30, 2020.  That figure declined significantly to roughly $8.0 million (3% of loan portfolio) that executed a second three-month forbearance request during the current quarter ended September 30, 2020.  Management anticipates a high majority of these clients moving back to amortizing status during the quarter ended December 31, 2020.

Net Loans Receivable have increased $18.86 million or 7.44% to $272.32 million at September 30, 2020 compared to $253.46 million at December 31, 2019.  Total Deposits have increased $40.53 million or 16.10% to $292.81 million at September 30, 2020 compared to $252.28 million at December 31, 2019.  Shareholder's equity increased $4.26 million or 10.31% to $45.58 million at September 30, 2020 compared to $41.32 million at December 31, 2019.  The book value of NIDB's stock was $37.66 per common share as of September 30, 2020.  The number of outstanding common shares was 1,210,327 as of the same date.  The last reported trade of the stock on October 13, 2020 was $33.50 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, 2020							December  31, 2019
Interest-earning cash and cash equivalents							$		12,569,363					$		8,352,340
Noninterest earning cash and cash equivalents							6,670,671							2,863,471
Total cash and cash equivalents							19,240,034							11,215,811
Interest- earning time deposits							3,681,000							3,681,000
Securities available for sale							70,635,203							65,001,858
Securities held to maturity							5,806,824							1,044,197
Loans held for sale							2,100,400							134,000
Loans receivable, net of allowance for loan loss September 30, 2020 $3,781,578 and December 31, 2019 $3,191,605							272,323,751							253,461,826
Accrued interest receivable							1,607,891							1,242,788
Premises and equipment							4,937,414							4,971,271
Investments in limited liability partnerships							1,903,334							2,128,334
Cash surrender value of life insurance							9,008,712							8,839,193
Other assets							1,675,232							2,203,348
Total Assets							$		392,919,795					$		353,923,626
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits							48,678,996							30,011,306
Interest bearing deposits							244,130,662							222,271,145
Borrowed Funds							51,229,782							57,237,450
Accrued interest payable and other liabilities							3,303,209							3,086,817
Total Liabilities							347,342,649							312,606,718
Retained earnings – substantially restricted							45,577,146							41,316,908
Total Liabilities and Shareholders' Equity							$		392,919,795					$			353,923,626
CONSOLIDATED STATEMENTS OF INCOME
		Three Months Ended					Nine Months Ended
		September 30,					September 30,
		2020			2019		2020					2019
Total interest income		$	3,734,822		$	4,097,681	$			11,333,967		$			12,107,235
Total interest expense			694,908			1,104,242				2,421,893					3,315,199
Net interest income		$	3,039,914		$	2,993,439	$			8,912,074		$			8,792,036
Provision for loan losses			120,000			200,000				460,000					350,000
Net interest income after provision for loan losses		$	2,919,914		$	2,793,439	$			8,452,074		$			8,442,036
Service charges on deposit accounts			148,651			190,919				469,371					539,822
Interchange Fees			122,189			160,982				419,398					443,850
Net gain (loss) on sale of securities			-			(6,510)				-					91,526
Net gain on sale of loans			799,857			385,842				1,841,861					648,112
Net gain (loss) on sale of repossessed assets			-			-				(16,535)					7,608
Brokerage fees			45,849			41,914				142,132					164,969
Increase in cash surrender value of life insurance			56,506			56,625				169,519					169,125
Other income			144,977			252,859				185,528					535,420
Total noninterest income		$	1,318,029		$	1,082,631	$			3,211,274		$			2,600,432
Salaries and employee benefits			1,242,653			1,279,760				3,723,935					3,877,132
Occupancy			256,947			291,719				769,947					853,257
Data processing			223,506			245,498				825,688					719,020
Deposit insurance premiums			32,500			-				78,000					24,000
Professional fees			82,144			53,695				203,174					287,255
Advertising / marketing fees			65,120			40,920				148,869					189,060
Correspondent bank charges			31,299			35,306				90,402					109,859
Other expense			281,095			300,486				847,170					843,493
Total noninterest expenses		$	2,215,264		$	2,247,384	$			6,687,185		$			6,903,076
Income before income tax expense		$	2,022,679		$	1,628,686	$			4,976,163		$			4,139,392
Income tax expense			375,565			267,005				852,482					599,203
Net Income		$	1,647,114		$	1,361,681	$			4,123,681		$			3,540,189
	Three Months Ended September 30,							Nine Months Ended September 30,
	2020				2019			2020			2019
Basic Earnings per common share	1.37				1.14			3.43			2.96
Dilutive Earnings per share	1.37				1.14			3.43			2.96
Net interest margin	3.24%				3.57%			3.28%			3.55%
Return on average assets	1.65%				1.53%			1.43%			1.34%
Return on average equity	14.33%				13.31%			12.54%			12.01%
Efficiency ratio	50.83%				55.14%			55.16%			60.59%
Average shares outstanding- primary	1,201,419				1,198,419			1,203,856			1,197,226
Average shares outstanding- diluted	1,201,586				1,198,586			1,205,523			1,197,926
Allowance for loan losses:
Balance at beginning of period	$		3,664,820		$	2,984,907		$		3,191,605	$				2,856,319
Charge-offs:
One-to-four family	-				41,961			-			41,961
Commercial real estate	-				-			17,951			73,705
Land/land development	-				-			-			-
Commercial	-				-			-			25,000
Consumer	39,016				67,622			84,143			153,031
Gross charge-offs	39,016				109,583			102,094			293,698
Recoveries:
One-to-four family	1,417				936			2,831			2,660
Commercial real estate	-				-			-			64,040
Land/land development	-				-			-			-
Commercial	-				1,581			105,919			23,649
Consumer	34,357				16,832			123,318			91,703
Gross recoveries	35,774				19,349			232,067			182,052
Net charge-offs	3,242				90,234			(129,973)			111,646
Additions charged to operations	120,000				200,000			460,000			350,000
Balance at end of period	$		3,781,578		$	3,094,673		$		3,781,578	$				3,094,673
(1) Net loan charge-offs/(recoveries) to average loans	0.00%				0.14%			(0.06%)			0.06%
Nonperforming assets (000's)	At September 30,				At June 30,			At March 31,			At December 31,
Loans:	2020				2020			2020			2019
Non-accrual	$		5,501		$	6,511		$		7,119	$				6,173
Past 90 days or more and still accruing	-				-			-			-
Troubled debt restructured	381				448			465			468
Total nonperforming loans	5,882				6,959			7,584			6,641
Real estate owned	5				5			59			262
Other repossessed assets	-				-			-			-
Total nonperforming assets	$		5,887		$	6,964		$		7,643	$				6,903
Nonperforming assets to total assets	1.50%				1.42%			2.14%			1.95%
Nonperforming loans to total loans	2.13%				2.48%			2.97%			2.59%
Allowance for loan losses to nonperforming loans	64.30%				52.66%			45.41%			48.07%
Allowance for loan losses to net loans receivable	1.39%				1.32%			1.37%			1.26%
	At September 30,
	2020				2019
Stockholders' equity as a % of total assets	11.60%				11.76%
Book value per share	$		37.66		$	34.28
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 Q3 2020 earnings results for Northeast Indiana Bancorp (NIDB)?

NIDB reported a net income of $1.65 million for Q3 2020, a 21.0% increase from the previous year.

How did the net income for the nine months ended September 30, 2020 compare to last year for NIDB?

Net income for the nine months of 2020 was $4.12 million, a 16.5% increase compared to $3.54 million for the same period in 2019.

What is the annualized return on assets (ROA) for NIDB as of Q3 2020?

The annualized ROA for NIDB in Q3 2020 was 1.65%.

How much PPP funding did NIDB help clients secure?

NIDB assisted over 400 clients in securing approximately $40.0 million in PPP funding.

What was the book value of NIDB's stock as of September 30, 2020?

As of September 30, 2020, the book value of NIDB's stock was $37.66 per common share.