NORTHEAST INDIANA BANCORP, INC. ANNOUNCES THIRD QUARTER 2023 EARNINGS

Rhea-AI Summary

Northeast Indiana Bancorp reports net income of $3.5 million for the nine months ended September 30, 2023, compared to $5 million for the same period in 2022. Net interest income decreased and overhead expenses increased, contributing to the decline in net income. Total assets increased to $484.4 million, and net loans increased to $359.3 million.

Positive

• Northeast Indiana Bancorp reports net income of $3.5 million for the nine months ended September 30, 2023, compared to $5 million for the same period in 2022. Total assets increased to $484.4 million, and net loans increased to $359.3 million.

Negative

• Net interest income decreased and overhead expenses increased, contributing to the decline in net income.

HUNTINGTON, Ind., Oct. 26, 2023 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB:  NIDB), the parent company of First Federal Savings Bank, today announced net income for the nine months ended September 30, 2023, was $3.5 million, or $1.46 per diluted common share, compared to net income of $5 million, or $2.08 per diluted common share for the nine months ended September 30, 2022.  The current nine months earnings equate to an annualized ROA of 1.01% and an annualized ROE of 10.72% compared to an annualized ROA of 1.58% and an annualized ROE of 14.94% for the nine months ended September 30, 2022. 

Net income for the third quarter ended September 30, 2023, was $1.2 million, or $0.51 per diluted common share, compared to net income of $1.6 million, or $0.68 per diluted common share for the third quarter ended September 30, 2022.  The current quarter earnings equate to an annualized return on average assets (ROA) of 1.02% and an annualized return on average equity (ROE) of 11.16% compared to an annualized ROA of 1.53% and an annualized ROE of 15.09% for the third quarter September 30, 2022. 

A decrease in net interest income and an increase in overhead expenses have been the primary contributing factors to the declines in net income. Net Interest Income was down $533,000 through the first nine months of 2023 compared to the same period in 2022. Payroll and employee benefit expenses increased $542,000 in 2023 compared to the same period in 2022.  Provision for loan loss expense was up $270,000 year-to-date in 2023 compared to the first nine months of 2022.  The Company continues to evaluate allowance for credit loss levels given the current year's loan growth and performance in this first year of adopting the new CECL accounting standard.  In addition, the gain on sale of mortgage loans decreased by $286,000 for the first nine months of 2023 compared to the same period in 2022. 

Total Assets increased $38.9 million to $484.4 million at September 30, 2023 compared to $445.5 million at December 31, 2022.  Net loans increased $38.6 million, or 16% on an annualized basis to $359.3 million at September 30, 2023 compared to $320.7 million at December 31, 2022.  Total deposits increased $24.7 million, or 9% on an annualized basis to $391.5 million at September 30, 2023 compared to $366.8 million at December 31, 2022.  Stockholder's equity increased to $43.8 million at September 30, 2023 compared to $43.1 million at December 31, 2022.  The book value of NIDB's stock was $18.08 per common share and tangible common equity ratio was 9.05% as of September 30, 2023. 

Michael S. Zahn, President, and CEO commented "In a challenging banking environment, we continue to experience excellent growth.  With the rapid increases in interest rates by the Federal Reserve to combat inflation, margins continue to be under pressure.  We are in a positive position to navigate the uncertain interest rate waters that lie ahead.  Our focus on the success of our customers while investing in our employees should continue to serve our communities and enhance shareholder value."

*All share data has been adjusted to reflect Northeast Indiana Bancorp, Inc.'s two-for-one stock split effective July 14, 2023.

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
		September 30,	December 31,	September 30,
Balance Sheet (Unaudited)		2023	2022	2022
			(Audited)
Assets
Non-interest earning cash and cash equivalents		$          4,452,087	$           3,141,705	$             3,531,435
Interest-earning cash and cash equivalents		1,170,142	747,920	930,052
Total cash and cash equivalents		5,622,229	3,889,625	4,461,487
Interest-earning time deposits		4,324,000	1,230,000	985,000
Securities available for sale		72,562,496	78,273,337	77,283,002
Securities held to maturity		12,765,697	12,062,446	12,072,056
Loans held for sale		286,205	189,600	494,900
Loans, gross		363,830,115	324,752,497	308,763,256
Allowance for loan losses		(4,529,632)	(3,996,619)	(4,024,366)
Loans, net		359,300,483	320,755,878	304,738,890
Accrued interest receivable		2,238,906	1,923,986	1,742,598
Premises and equipment		7,075,694	7,254,951	7,211,971
FHLB Stock		2,182,500	2,101,600	2,101,600
Investment in limited partnerships		1,003,334	1,228,334	1,303,334
Cash surrender value of life insurance		11,675,890	11,629,618	11,554,663
Real estate owned and other repossessed assets		-	-	-
Other assets		5,389,135	4,988,219	5,484,511
Total Assets		$     484,426,569	$      445,527,594	$        429,434,012
Liabilities and Stockholders' Equity
Non-interest bearing deposits		$        56,131,800	$         53,232,315	$          66,847,065
Interest bearing deposits		335,395,992	313,584,014	289,856,179
Borrowed funds		45,000,000	32,000,000	28,000,000
Accrued interest payable and other liabilities		4,049,508	3,584,163	2,729,801
Total Liabilities		440,577,300	402,400,492	387,433,045
Stockholders' equity		43,849,269	43,127,102	42,000,967
Total Liabilities and Stockholders' Equity		$     484,426,569	$      445,527,594	$        429,434,012

 

		Three months ended				Nine months ended
		September 30,	June 30,	September 30,		September 30,	September 30,
Income Statement (Unaudited)		2023	2023	2022		2023	2022
Net interest income
Total interest income		$          6,354,262	$           5,713,346	$             4,456,152		$        17,455,735	$       12,480,325
Total interest expense		2,610,737	2,260,069	509,035		6,632,701	1,124,663
Net interest income		3,743,525	3,453,277	3,947,117		10,823,034	11,355,662
Provision for loan losses		90,000	90,000	-		270,000	-
Net interest income after provision for loan losses		3,653,525	3,363,277	3,947,117		10,553,034	11,355,662
Non-interest income
Service charges on deposit accounts		184,111	177,656	201,818		549,989	542,615
Interchange fees		199,248	200,186	201,646		591,772	590,520
Loan servicing fees		102,753	-	98,371		306,526	291,297
Net gain on sale of loans		115,722	79,680	114,804		261,195	547,282
Net loss on sale of repossessed assets		-	-	-		-	-
Brokerage fees		44,957	43,798	51,158		155,240	162,324
Increase in cash surrender value of life insurance		74,217	73,360	74,604		221,226	222,722
Other income		37,652	376,994	80,456		384,883	248,521
Total non-interest income		758,660	951,674	822,857		2,470,832	2,605,281
Non-interest expense
Salaries and employee benefits		1,604,968	1,680,705	1,510,552		4,972,918	4,254,907
Occupancy		330,735	369,466	372,801		1,041,135	984,095
Data processing		397,132	394,044	371,686		1,185,772	1,089,502
Deposit insurance premiums		46,000	56,000	28,500		151,500	87,500
Professional fees		173,208	143,224	117,130		427,468	340,626
Advertising and marketing fees		13,909	76,513	83,237		182,139	179,008
Correspondent bank charges		35,395	35,342	32,669		109,468	89,721
Other expense		386,385	292,984	307,363		923,389	918,003
Total non-interest expense		2,987,732	3,048,278	2,823,938		8,993,789	7,943,362
Income before income taxes		1,424,453	1,266,673	1,946,036		4,030,077	6,017,581
Income tax expense		193,172	149,993	323,085		511,659	1,017,989
Net income		$          1,231,281	$           1,116,680	$             1,622,951		$          3,518,418	$          4,999,592
		Three months ended				Nine months ended
		September 30,	June 30,	September 30,		September 30,	September 30,
Selected Financial Ratios and Other Financial Data (Unaudited)		2023	2023	2022		2023	2022
Average shares outstanding - basic		2,402,070	2,402,070	2,399,770		2,401,809	2,399,178
Average shares outstanding - diluted		2,402,094	2,402,070	2,399,914		2,401,846	2,399,553
Basic earnings per share		$                     0.51	$                      0.46	$                       0.68		$                     1.46	$                    2.08
Diluted earnings per share		$                     0.51	$                      0.46	$                       0.68		$                     1.46	$                    2.08
Net interest margin		3.21 %	3.09 %	3.88 %		3.22 %	3.77 %
Return on average assets		1.02 %	0.96 %	1.53 %		1.01 %	1.58 %
Return on average equity		11.16 %	10.16 %	15.09 %		10.72 %	14.94 %
Efficiency ratio		66.36 %	69.20 %	59.20 %		67.65 %	56.90 %
Allowance for loan losses:
Balance, beginning of period		$          4,508,446	$           4,421,505	$             3,982,194		$          3,996,619	$          3,998,392
Charge-offs:
One-to-four family		21,457	6,009	-		27,466	-
Commercial real estate		-	-	-		-	-
Land/land development		-	-	-		-	-
Commercial		-	-	-		-	-
Consumer		73,324	20,811	21,604		130,265	79,111
Gross charge-offs		94,781	26,820	21,604		157,731	79,111
Recoveries:
One-to-four family		586	-	661		586	2,590
Commercial real estate		-	-	108		-	439
Land/land development		-	-	-		-	-
Commercial		600	2,207	40,000		3,730	49,725
Consumer		24,780	21,554	23,007		66,427	52,331
Gross recoveries		25,966	23,761	63,776		70,743	105,085
Net charge-offs (recoveries)		68,815	3,059	(42,172)		86,988	(25,974)
CECL adjustment		-	-	-		350,000
Provision for loan losses		90,000	90,000	-		270,000	-
Balance, end of period		$          4,529,631	$           4,508,446	$             4,024,366		$          4,529,631	$          4,024,366
Net loan charge-offs (recoveries) to average loans		0.08 %	0.00 %	-0.06 %		0.03 %	-0.01 %
		As of
		September 30,	June 30,	September 30,
Non-performing assets		2023	2023	2022
Loans:
Non-accrual		$          3,667,841	$           6,302,505	$             2,683,491
Past 90 days or more and still accruing		-	-	-
Troubled debt restructured		524,970	525,020	525,383
Total non-performing loans		4,192,811	6,827,525	3,208,874
Real estate owned		-	-	-
Other repossessed assets		-	-	-
Total non-performing assets		$          4,192,811	$           6,827,525	$             3,208,874
Non-performing assets to total assets		0.87 %	1.44 %	0.75 %
Non-performing loans to gross loans		1.15 %	1.94 %	1.04 %
Allowance for loan losses to non-performing loans		108.03 %	66.03 %	125.41 %
Allowance for loan losses to gross loans		1.24 %	1.28 %	1.30 %
Other financial ratios
Tangible common equity		9.05 %	9.29 %	9.78 %
Book value per share		$                  18.08	$                   18.21	$                     17.43
Common shares outstanding		2,425,670	2,425,670	2,410,270
(1) Ratios for three and nine-month periods are annualized
(2) All share data has been adjusted for the 2:1 stock split on July 14, 2023.

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/northeast-indiana-bancorp-inc-announces-third-quarter-2023-earnings-301969220.html

SOURCE Northeast Indiana Bancorp, Inc.

FAQ

What was the net income for Northeast Indiana Bancorp for the nine months ended September 30, 2023?

The net income for Northeast Indiana Bancorp for the nine months ended September 30, 2023, was $3.5 million.

How did net interest income and overhead expenses affect the net income?

Net interest income decreased and overhead expenses increased, contributing to the decline in net income.

What were the total assets and net loans for Northeast Indiana Bancorp?

The total assets were $484.4 million, and net loans were $359.3 million.