NORTHEAST INDIANA BANCORP, INC. ANNOUNCES SECOND QUARTER 2022 EARNINGS

Rhea-AI Summary

Northeast Indiana Bancorp (OTCQB: NIDB) reported a net income of $3.4 million for the six months ending June 30, 2022, down from $3.8 million in 2021, reflecting a decrease in diluted earnings per share from $3.19 to $2.81. The annualized ROA and ROE also fell to 1.61% and 14.96%, respectively. The second quarter net income was $1.6 million, compared to $1.9 million in the same period last year. Key factors include an $800,000 drop in mortgage loan sales due to rising interest rates, although net interest income rose by $506,000. Total assets decreased to $413.4 million, while deposits grew by $15.5 million.

Positive

• Net interest income increased by $506,000 in the first half of 2022 compared to 2021.
• Net loans grew by $13.3 million, a 9.7% annualized increase.

Negative

• Net income decreased from $3.8 million in H1 2021 to $3.4 million in H1 2022.
• Total assets fell by $4.2 million, driven by a $12.1 million drop in the investment portfolio's market value.
• Stockholder's equity decreased by $6.7 million to $42.0 million by June 30, 2022.

HUNTINGTON, Ind., July 18, 2022 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB:  NIDB), the parent company of First Federal Savings Bank, today announced net income for the six months ended June 30, 2022 was $3.4 million, or $2.81 per diluted common share, compared to net income of $3.8 million, or $3.19 per diluted common share for the six months ended June 30, 2021.  The current six months earnings equate to an annualized ROA of 1.61% and an annualized ROE of 14.96% compared to an annualized ROA of 1.90% and an annualized ROE of 16.41% for the six months ended June 30, 2021. 

Net income for the second quarter ended June 30, 2022 was $1.6 million, or $1.33 per diluted common share, compared to net income of $1.9 million, or $1.61 per diluted common share for the second quarter ended June 30, 2021.  The current quarter earnings equate to an annualized return on average assets (ROA) of 1.52% and an annualized return on average equity (ROE) of 14.81% compared to an annualized ROA of 1.88% and an annualized ROE of 16.47% for the second quarter June 30, 2021. 

The declines in net income are primarily related to a reduction in gain on sale of mortgage loans of $800,000 for the six months ended 2022 compared to the same period in 2021 and a reduction of $414,000 for the current quarter 2022 compared to the same period in 2021.  Mortgage production slowed in the first half of 2022 compared to the first half of 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 $506,000 for the six months ended 2022 compared to the same period in 2021 and an increase of $233,000 for the second quarter of 2022 compared to the second quarter of 2021.

Total Assets decreased $4.2 million to $413.4 million at June 30, 2022 compared to $417.7 million at December 31, 2021.  This decrease was primarily due to a $12.1 million reduction in the market value of the investment portfolio due to the volatility of interest rates in the first half of 2022.   Net loans increased $13.3 million, or 9.7% on an annualized basis to $287.6 million at June 30, 2022 compared to $274.3 million at December 31, 2021.  Total deposits increased $15.5 million, or 9.1% on an annualized basis to $357.4 million at June 30, 2022 compared to $341.9 million at December 31, 2021.  Stockholder's equity decreased $6.7 million to $42.0 million at June 30, 2022 compared to $48.7 million at December 31, 2021.  This decrease was a result of a decline in accumulated other comprehensive income by $9.4 million in the first half of 2022 due to unrealized losses in the investment portfolio.  The book value of NIDB's stock was $34.88 per common share and tangible common equity ratio was 10.17% as of June 30, 2022. 

Michael S. Zahn, President and CEO, commented, "I am very pleased with our performance in 2022.  Our net interest income continues to grow as we maintain a consistent net interest margin with solid loan growth.  Our focus on the well-being of our clients and our employees should continue to promote our communities and enhance shareholder value."

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.firstfedindianabank.

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
	June 30,	December 31,	June 30,
Balance Sheet (Unaudited)	2022	2021	2021
		(Audited)
Assets
Non-interest earning cash and cash equivalents	$          4,216,886	$           3,595,989	$             1,897,678
Interest-earning cash and cash equivalents	165,720	12,185,155	9,468,173
Total cash and cash equivalents	4,382,607	15,781,144	11,365,850
Interest-earning time deposits	1,965,000	2,210,000	2,210,000
Securities available for sale	78,495,626	86,644,434	81,836,452
Securities held to maturity	12,081,645	11,916,667	12,010,518
Loans held for sale	161,200	538,635	1,116,150
Loans, gross	291,571,122	278,265,486	281,445,137
Allowance for loan losses	(3,982,194)	(3,998,392)	(3,987,013)
Loans, net	287,588,928	274,267,094	277,458,123
Accrued interest receivable	1,648,755	1,489,036	1,595,277
Premises and equipment	7,187,929	6,937,418	5,554,232
FHLB Stock	2,101,600	2,426,500	2,426,500
Investment in limited partnerships	1,378,334	1,528,334	1,678,334
Cash surrender value of life insurance	11,480,059	11,331,941	10,200,706
Real estate owned and other repossessed assets	-	-	255,000
Other assets	4,943,047	2,585,660	2,230,090
Total Assets	$     413,414,729	$      417,656,863	$        409,937,232
Liabilities and Stockholders' Equity
Non-interest bearing deposits	$        59,310,279	$         56,435,410	$          56,179,514
Interest bearing deposits	298,125,285	285,513,161	253,839,751
Borrowed funds	11,200,000	23,001,166	48,483,160
Accrued interest payable and other liabilities	2,747,398	4,013,574	3,469,635
Total Liabilities	371,382,961	368,963,311	361,972,059
Stockholders' equity	42,031,768	48,693,552	47,965,173
Total Liabilities and Stockholders' Equity	$     413,414,729	$      417,656,863	$        409,937,232

 

 

	Three months ended				Six months ended
	June 30,	March 31,	June 30,		June 30,	June 30,
Income Statement (Unaudited)	2022	2022	2021		2022	2021
Net interest income
Total interest income	$          3,990,602	$           4,033,571	$             3,882,113		$          8,024,174	$          7,866,724
Total interest expense	324,499	291,129	448,556		615,628	964,464
Net interest income	3,666,104	3,742,442	3,433,558		7,408,546	6,902,261
Provision for loan losses	-	-	-		-	120,000
Net interest income after provision for loan losses	3,666,104	3,742,442	3,433,558		7,408,546	6,782,261
Non-interest income
Service charges on deposit accounts	186,399	154,398	156,294		340,797	307,116
Interchange fees	202,532	186,342	203,685		388,873	385,746
Loan servicing fees	88,523	104,403	26,206		192,926	56,453
Net gain on sale of loans	189,597	242,882	603,135		432,478	1,232,624
Net loss on sale of repossessed assets	-	-	-		-	-
Brokerage fees	57,014	54,151	54,878		111,166	132,215
Increase in cash surrender value of life insurance	72,984	75,134	64,631		148,118	129,263
Other income	80,077	87,989	94,781		168,066	187,413
Total non-interest income	877,126	905,298	1,203,611		1,782,424	2,430,830
Non-interest expense
Salaries and employee benefits	1,334,097	1,410,259	1,190,494		2,744,356	2,320,654
Occupancy	328,827	282,467	254,597		611,294	525,872
Data processing	360,896	356,919	344,049		717,815	669,041
Deposit insurance premiums	28,500	30,500	25,500		59,000	50,000
Professional fees	142,591	80,905	67,477		223,496	161,761
Advertising and marketing fees	38,684	57,088	38,890		95,772	95,487
Correspondent bank charges	31,310	25,742	26,660		57,052	52,264
Other expense	368,060	242,580	312,668		610,640	622,606
Total non-interest expense	2,632,965	2,486,461	2,260,335		5,119,425	4,497,685
Income before income taxes	1,910,266	2,161,279	2,376,834		4,071,544	4,715,405
Income tax expense	314,737	380,167	449,105		694,904	894,769
Net income	$          1,595,529	$           1,781,112	$             1,927,729		$          3,376,640	$          3,820,636

 

 

		Three months ended				Six months ended
		June 30,	March 31,	June 30,		June 30,	June 30,
Selected Financial Ratios and Other Financial Data (Unaudited)		2022	2022	2021		2022	2021
Average shares outstanding - basic		1,199,885	1,199,001	1,196,785		1,199,512	1,198,558
Average shares outstanding - diluted		1,200,059	1,199,318	1,196,785		1,199,757	1,198,558
Basic earnings per share		$                   1.33	$                    1.49	$                      1.61		$                    2.82	$                   3.19
Diluted earnings per share		$                   1.33	$                    1.49	$                      1.61		$                    2.81	$                   3.19
Net interest margin		3.66 %	3.80 %	3.72 %		3.73 %	3.63 %
Return on average assets		1.52 %	1.70 %	1.88 %		1.61 %	1.90 %
Return on average equity		14.81 %	15.07 %	16.47 %		14.96 %	16.41 %
Efficiency ratio		57.95 %	53.50 %	48.74 %		55.70 %	48.19 %
Allowance for loan losses:
Balance, beginning of period		$          4,004,074	$           3,998,392	$             3,974,475		$          3,998,392	$          3,851,897
Charge-offs:
One-to-four family		-	-	-		-	-
Commercial real estate		-	-	15,194		-	15,194
Land/land development		-	-	-		-	-
Commercial		-	-	-		-	-
Consumer		40,072	17,435	11,828		57,507	62,088
Gross charge-offs		40,072	17,435	27,022		57,507	77,282
Recoveries:
One-to-four family		974	955	1,398		1,929	2,877
Commercial real estate		113	218	10,195		331	10,195
Land/land development		-	-	-		-	-
Commercial		-	9,725	350		9,725	740
Consumer		17,105	12,219	27,617		29,324	78,586
Gross recoveries		18,192	23,117	39,560		41,309	92,398
Net charge-offs (recoveries)		21,880	(5,682)	(12,538)		16,198	(15,116)
Provision for loan losses		-	-	-		-	120,000
Balance, end of period		$          3,982,194	$           4,004,074	$             3,987,013		$          3,982,194	$          3,987,013
Net loan charge-offs (recoveries) to average loans		0.03 %	-0.01 %	-0.02 %		0.01 %	-0.01 %

 

		As of
		June 30,	March 31,	June 30,
Non-performing assets		2022	2022	2021
Loans:
Non-accrual		$          2,248,220	$           2,023,525	$             1,800,365
Past 90 days or more and still accruing		-	-	-
Troubled debt restructured		475,210	363,992	361,570
Total non-performing loans		2,723,430	2,387,517	2,161,935
Real estate owned		-	-	255,000
Other repossessed assets		-	-	-
Total non-performing assets		$          2,723,430	$           2,387,517	$             2,416,935
Non-performing assets to total assets		0.66 %	0.57 %	0.59 %
Non-performing loans to gross loans		0.93 %	0.86 %	0.77 %
Allowance for loan losses to non-performing loans		146.22 %	167.47 %	184.42 %
Allowance for loan losses to gross loans		1.37 %	1.44 %	1.42 %
Other financial ratios
Tangible common equity		10.17 %	10.80 %	11.70 %
Book value per share		$                 34.88	$                  37.60	$                    39.87
Common shares outstanding		1,205,135	1,205,435	1,202,985
(1) Ratios for three and six-month periods are annualized

 

 

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SOURCE Northeast Indiana Bancorp, Inc.

FAQ

What was NIDB's net income for the first half of 2022?

NIDB's net income for the six months ended June 30, 2022, was $3.4 million.

How did NIDB's earnings per share change compared to 2021?

Earnings per share decreased from $3.19 in 2021 to $2.81 in 2022.

What were the key factors affecting NIDB's financial results in 2022?

Key factors include a decrease in gain on sale of mortgage loans and rising interest rates.

What is the current book value of NIDB's stock?

The book value of NIDB's stock was $34.88 per common share as of June 30, 2022.

How much did NIDB’s total deposits increase by in 2022?

Total deposits increased by $15.5 million, or 9.1%, compared to December 31, 2021.