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NORTHEAST INDIANA BANCORP, INC. ANNOUNCES FIRST QUARTER 2024 EARNINGS

April 24, 2024 5:23 PM EDT

HUNTINGTON, Ind., April 24, 2024 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB:  NIDB), the parent company of First Federal Savings Bank, today announced net income of $722,000 ($0.30 per diluted common share) for the first quarter ended March 31, 2024 compared to earnings from the quarter ended March 31, 2023 of $1.17 million ($0.49 per diluted common share).  The current three months earnings equate to an annualized return on average assets (ROA) of 0.57% and a return on average equity (ROE) of 6.26% compared to an ROA of 1.04% and an ROE of 10.75% for the prior year quarter ended March 31, 2023.

Total assets increased $10.7 million, or 8.6% on an annualized basis, to $509.4 million at March 31, 2024 compared to total assets of $498.7 million at December 31, 2023.  Total loans increased $8.7 million, or 9.4% on an annualized basis, to $379.3 million at March 31, 2024 compared to total loans of $370.7 million at December 31, 2023.  Total deposits increased $2.3 million, or 2.3% on an annualized basis, to $403.4 million at March 31, 2024 compared to $401.1 million at December 31, 2023.    

Shareholders' equity decreased $131,000 to $46.3 million at March 31, 2024 compared to $46.4 million at December 31, 2023.  The decrease in shareholders' equity was a result of the combination of the fair value of the investment portfolio decreasing $471,000 and dividends paid of $413,000 slightly exceeding net income for the first quarter.  The book value of NIDB stock decreased $0.10 to $19.05 per common share as of March 31, 2024 compared to $19.15 at December 31, 2023.  The number of outstanding common shares was 2,429,698 as of March 31, 2024

Net interest income decreased $2,000 in the first quarter of 2024 compared to the same period in 2023.  Continued margin pressure saw gains in interest income offset by increases in interest expense.  An increase in average earning assets of $51.6 million was countered by a 36 basis point decrease in net interest margin to 2.99% for the first quarter of 2024 compared to the first quarter of 2023.  The decline in net interest margin was primarily due to an increase of 108 basis points in costs of interest-bearing liabilities of 3.10% in the first quarter of 2024 compared to 2.02% in the first quarter of 2023 matched against an increase of 58 basis points in yield on interest earning assets to 5.55% in the first quarter of 2024 compared to 4.97% in the first quarter of 2023.

Provision for loan loss expense of $500,000 in the first quarter of 2024 decreased $280,000 as compared to the previous quarter expense of $780,000.  The first quarter expense was a result of the CECL accounting standard's impact related to new growth of the loan portfolio in addition to an increase in specific reserves on existing loans.

Non-interest income declined $75,000 in the first quarter of 2024 compared to the same period in 2023.  The decrease was primarily the result of a decline of $30,000 in gain on sale of loans due to slower mortgage volume in the first quarter of 2024 compared to the first quarter of 2023 and a decline of $65,000 in brokerage fee income with the bank transitioning its investment advisory business to a third-party during the 4th quarter of 2023.  Non-interest expense increased $114,000 in the first quarter of 2024 compared to the first quarter of 2023.  In addition to the growth in expenses attributed to a growing balance sheet, the increase in non-interest expense is primarily due to an increase in FDIC deposit insurance premiums of $25,000.

*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






March 31,

December 31,

March 31,

Balance Sheet (Unaudited)

2024

2023

2023





Assets




Interest-earning cash and cash equivalents

$         3,760,954

$         4,304,296

$         2,646,912

Non-interest earning cash and cash equivalents

2,380,391

1,166,180

1,940,693

Total cash and cash equivalents

6,141,345

5,470,476

4,587,606

Interest-earning time deposits

4,520,000

4,320,000

1,230,000

Securities available for sale

75,898,559

76,228,755

78,278,059

Securities held to maturity

12,500,863

12,754,763

12,787,199

Loans held for sale

74,900

-

403,600

Loans, gross

385,129,684

375,992,822

330,160,388

Allowance for loan losses

(5,790,301)

(5,335,305)

(4,421,505)

Loans, net

379,339,383

370,657,517

325,738,883

Accrued interest receivable

2,455,724

2,354,636

1,982,785

Premises and equipment

7,752,161

7,366,169

7,376,693

FHLB Stock

2,835,000

2,227,500

2,101,600

Investment in limited partnerships

853,334

928,334

1,153,334

Cash surrender value of life insurance

12,334,196

11,751,653

11,703,266

Other assets

4,655,401

4,624,206

4,803,252

Total Assets

$    509,360,866

$    498,684,009

$    452,146,276





Liabilities and Stockholders' Equity




Non-interest bearing deposits

$      50,297,770

$      54,764,981

$      54,547,736

Interest bearing deposits

353,098,422

346,307,200

316,197,968

Borrowed funds

56,000,000

47,250,000

34,000,000

Accrued interest payable and other liabilities

3,675,681

3,941,438

3,582,889

Total Liabilities

463,071,873

452,263,619

408,328,593

Stockholders' equity

46,288,993

46,420,390

43,817,683

Total Liabilities and Stockholders' Equity

$    509,360,866

$    498,684,009

$    452,146,276










 Three months ended


March 31,

December 31,

March 31,

Income Statement (Unaudited)

2024

2023

2023





Net interest income




Total interest income

$         6,729,934

$         6,702,608

$         5,388,127

Total interest expense

3,105,342

2,952,000

1,761,895

Net interest income

3,624,592

3,750,608

3,626,232

Provision for loan losses

500,000

780,000

90,000

Net interest income after provision for loan losses

3,124,592

2,970,608

3,536,232





Non-interest income




Service charges on deposit accounts

178,670

184,623

188,222

Interchange fees

200,018

195,918

192,338

Loan servicing fees

109,708

108,432

102,573

Net gain on sale of loans

36,024

67,979

65,793

Brokerage fees

1,182

29,086

66,485

Increase in cash surrender value of life insurance

82,543

75,763

73,648

Other income

86,643

73,390

80,671

Total non-interest income

694,788

735,191

769,730





Non-interest expense




Salaries and employee benefits

1,640,271

1,443,480

1,687,245

Occupancy

355,051

340,005

340,935

Data processing

438,832

387,894

394,597

Deposit insurance premiums

74,000

54,000

49,500

Professional fees

104,013

207,204

111,035

Advertising and marketing fees

87,680

129,495

91,717

Correspondent bank charges

39,596

39,288

38,732

Other expense

341,495

335,295

253,251

Total non-interest expense

3,080,938

2,936,661

2,967,012





Income before income taxes

738,442

769,138

1,338,950

Income tax expense

16,252

27,866

168,494

Net income

$            722,190

$            741,272

$         1,170,456






 Three months ended


March 31,

December 31,

March 31,

Selected Financial Ratios and Other Financial Data (Unaudited)

2024

2023

2023





Average shares outstanding - basic

2,405,122

2,401,584

2,401,319

Average shares outstanding - diluted

2,405,122

2,401,584

2,401,406

Basic earnings per share

$                   0.30

$                   0.31

$                   0.49

Diluted earnings per share

$                   0.30

$                   0.31

$                   0.49

Net interest margin (1)

2.99 %

3.16 %

3.35 %

Return on average assets (1)

0.57 %

0.60 %

1.04 %

Return on average equity (1)

6.26 %

6.75 %

10.75 %

Efficiency ratio

71.33 %

65.47 %

67.49 %





Allowance for loan losses:




Balance, beginning of period

$         5,335,305

$         4,529,631

$         3,996,619

Charge-offs:




One-to-four family

-

-

-

Commercial real estate

-

-

-

Land/land development

-

-

-

Commercial 

-

-

-

Consumer

69,725

68,491

36,130

Gross charge-offs

69,725

68,491

36,130

Recoveries:




One-to-four family

-

10,664

-

Commercial real estate

-

-

-

Land/land development

-

-

-

Commercial 

-

200

923

Consumer

24,721

38,301

20,093

Gross recoveries

24,721

49,165

21,016

Net charge-offs (recoveries)

45,004

19,326

15,114

CECL adjustment

-

-

350,000

Provision for loan losses

500,000

825,000

90,000

Balance, end of period

$         5,790,301

$         5,335,305

$         4,421,505





Net loan charge-offs (recoveries) to average loans (1)

0.05 %

0.02 %

0.02 %






As of


March 31,

December 31,

March 31,

Non-performing assets

2024

2023

2023

Loans:




Non-accrual

$         6,547,940

$         6,415,623

$         4,137,597

Past 90 days or more and still accruing

-

-

-

Troubled debt modification

524,970

524,970

525,020

Total non-performing loans

7,072,910

6,940,593

4,662,617

Real estate owned

-

-

-

Other repossessed assets

-

-

-

Total non-performing assets

$         7,072,910

$         6,940,593

$         4,662,617





Non-performing assets to total assets

1.39 %

1.39 %

1.03 %

Non-performing loans to gross loans

1.84 %

1.85 %

1.41 %

Allowance for loan losses to non-performing loans

81.87 %

76.87 %

94.83 %

Allowance for loan losses to gross loans

1.50 %

1.42 %

1.34 %





Other financial ratios




Stockholders' equity as a % of total assets

9.09 %

9.31 %

9.69 %

Book value per share

$                 19.05

$                 19.15

$                 18.01

Common shares outstanding

2,429,698

2,423,698

2,432,670





(1) Ratios for three-month periods are annualized




(2) All share data has been adjusted for the 2:1 stock split on July 14, 2023.




 

 

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SOURCE Northeast Indiana Bancorp, Inc.



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