NORTHEAST INDIANA BANCORP, INC. ANNOUNCES FOURTH QUARTER AND ANNUAL EARNINGS

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January 23, 2024 12:56 PM EST

HUNTINGTON, Ind., Jan. 23, 2024 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB:  NIDB), the parent company of First Federal Savings Bank, today announced net income for the full year of 2023 was $4.3 million, or $1.77 per diluted common share, compared to net income of $6.6 million, or $2.73 per diluted common share for the full year of 2022.  The annual earnings of 2023 equate to a return on average assets (ROA) ratio of 0.90% and a return on average equity (ROE) ratio of 9.72% compared to ROA of 1.54% and ROE of 14.90% for the full year of 2022. 

Net income for the fourth quarter ended December 31, 2023 was $741,000, or $0.31 per diluted common share, compared to net income of $1.6 million, or $0.65 per diluted common share for the fourth quarter ended December 31, 2022.  The current quarter earnings equate to an annualized ROA of 0.60% and an annualized ROE of 6.75% compared to an annualized ROA of 1.42% and an annualized ROE of 14.84% for the fourth quarter ended December 31, 2022. 

Factoring into the decline of net income was margin pressure throughout 2023 leading to a reduction in net interest income of $730,000 compared to the same period in 2022.  Provision expenses increased by $1.1 million as implementation of the new CECL accounting standard during the year required the bank to increase the allowance for loan loss reserve to account for its strong loan growth in 2023.   Overhead expenses increased by $1.1 million during 2023 with employee compensation and benefits higher by $650,000 as compared to 2022.

Total Assets increased $53.2 million to $498.7 million at December 31, 2023 compared to $445.5 million at December 31, 2022.  This increase was primarily due to net loans increasing $49.9 million, or 15.6% in 2023, to $370.7 million as of December 31, 2023 compared to $320.8 million as of December 31, 2022.  Total deposits increased $34.3 million, or 9.3% in 2023, to $401.1 million at December 31, 2023 compared to $366.8 million at December 31, 2022.  Stockholder's equity increased $3.3 million to $46.4 million at December 31, 2023 compared to $43.1 million at December 31, 2022.  Contributing to this increase was a $1.5 million improvement in the bank's net unrealized loss position in the investment portfolio.  The book value of NIDB's stock was $19.15 per common share and the tangible common equity ratio was 9.31% as of December 31, 2023. 

In the current year, Northeast Indiana Bancorp and First Federal Savings Bank have been recognized for its performance.  First Federal Savings Bank was named to American Banker Magazine's Top 200 Community Banks for the 12th consecutive year for 2022. The magazine qualifies banks for this listing if they have less than $2 billion in total assets and are publicly traded. FFSB came in at #59 on this year's list of the top 200 publicly traded community banks. This is a 3-spot improvement from #62 in 2021. The magazine ranked the institutions based on the profitability metric, Return on Average Equity, over a 3-year period. Only 11 banks from the state of Indiana made this elite list and First Federal Savings Bank ranked 3rd in the State.

In addition, Northeast Indiana Bancorp, Inc., the holding company for First Federal Savings Bank, maintained its position on the Dividend Champions List.  To achieve Champion status, a company must increase its dividend payments to its shareholders for 25 consecutive years.  Northeast Indiana Bancorp is one of 150 companies in the United States to achieve this status and one of five companies from Indiana.  With the latest dividend increase in the fourth quarter of 2023, Northeast Indiana Bancorp has increased dividends 29 years in a row.

Michael Zahn, President and CEO, states "The Bank had another strong year despite the challenging interest rate environment and implementation of new accounting rules as it relates to our loan loss reserve.  I'm very pleased with our loan and deposit growth and the recognitions we continue to receive.  Our team is second to none and provides exceptional service to our customers and communities.  We will continue to invest in talent as we grow.   Our dedication to community banking is the cornerstone of who we are and drives our continued goal of enhancing shareholder value moving forward." 

*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











December 31,

December 31,





Balance Sheet (Unaudited)

2023

2022








(Audited)





Assets








Non-interest earning cash and cash equivalents


$          4,304,296

$           3,141,705





Interest-earning cash and cash equivalents


1,166,180

747,920





Total cash and cash equivalents


5,470,476

3,889,625





Interest-earning time deposits


4,320,000

1,230,000





Securities available for sale


76,228,755

78,273,337





Securities held to maturity


12,754,763

12,062,446





Loans held for sale


-

189,600





Loans, gross


375,992,822

324,752,497





Allowance for loan losses


(5,335,305)

(3,996,619)





Loans, net


370,657,517

320,755,878





Accrued interest receivable


2,354,636

1,923,986





Premises and equipment


7,366,169

7,254,951





FHLB Stock


2,227,500

2,101,600





Investment in limited partnerships


928,334

1,228,334





Cash surrender value of life insurance


11,751,653

11,629,618





Other assets


4,624,206

4,988,219





Total Assets


$      498,684,009

$      445,527,594













Liabilities and Stockholders' Equity








Non-interest bearing deposits


$        54,764,981

$         53,232,315





Interest bearing deposits


346,307,200

313,584,014





Borrowed funds


47,250,000

32,000,000





Accrued interest payable and other liabilities


3,941,438

3,584,163





Total Liabilities


452,263,619

402,400,492





Stockholders' equity


46,420,390

43,127,102





Total Liabilities and Stockholders' Equity


$      498,684,009

$      445,527,594























 Three months ended 


Twelve months ended



December 31,

September 30,

December 31,


December 31,

December 31,

Income Statement (Unaudited)

2023

2023

2022


2023

2022









Net interest income








Total interest income


$          6,702,608

$           6,354,262

$            5,071,415


$        24,158,344

$       17,551,740

Total interest expense


2,952,000

2,610,737

1,120,123


9,584,701

2,244,786

Net interest income


3,750,608

3,743,525

3,951,292


14,573,643

15,306,954

Provision for loan losses


780,000

90,000

-


1,050,000

-

Net interest income after provision for loan losses


2,970,608

3,653,525

3,951,292


13,523,643

15,306,954









Non-interest income








Service charges on deposit accounts


184,623

184,111

198,715


734,612

741,330

Interchange fees


195,918

199,248

193,610


787,690

784,129

Loan servicing fees


108,432

102,753

62,712


414,958

354,009

Net gain on sale of loans


67,979

115,722

66,083


329,174

613,364

Brokerage fees


29,086

44,957

41,034


184,326

203,357

Increase in cash surrender value of life insurance


75,763

74,217

74,955


296,990

297,677

Other income


73,390

37,652

102,248


458,274

350,771

Total non-interest income


735,191

758,660

739,357


3,206,024

3,344,637









Non-interest expense








Salaries and employee benefits


1,443,480

1,604,968

1,513,293


6,416,398

5,768,201

Occupancy


340,005

330,735

383,944


1,381,140

1,368,039

Data processing


387,894

397,132

371,655


1,573,667

1,461,156

Deposit insurance premiums


54,000

46,000

28,500


205,500

116,000

Professional fees


207,204

173,208

138,903


634,672

479,529

Advertising and marketing fees


129,495

13,909

89,021


311,634

268,029

Correspondent bank charges


39,288

35,395

32,864


148,756

122,585

Other expense


335,295

386,385

281,403


1,258,685

1,199,405

Total non-interest expense


2,936,661

2,987,732

2,839,583


11,930,452

10,782,944









Income before income taxes


769,138

1,424,453

1,851,066


4,799,215

7,868,647

Income tax expense


27,866

193,172

298,062


539,525

1,316,051

Net income


$             741,272

$           1,231,281

$            1,553,004


$          4,259,690

$          6,552,596











 Three months ended 


Twelve months ended



December 31,

September 30,

December 31,


December 31,

December 31,

Selected Financial Ratios and Other Financial Data (Unaudited)

2023

2023

2022


2023

2022









Average shares outstanding - basic


2,401,584

2,402,070

2,399,770


2,401,745

2,400,103

Average shares outstanding - diluted


2,401,584

2,402,094

2,399,914


2,401,773

2,400,409

Basic earnings per share


$                    0.31

$                    0.51

$                      0.65


$                    1.77

$                   2.73

Diluted earnings per share


$                    0.31

$                    0.51

$                      0.65


$                    1.77

$                   2.73

Net interest margin


3.16 %

3.21 %

3.73 %


3.20 %

3.76 %

Return on average assets


0.60 %

1.02 %

1.42 %


0.90 %

1.54 %

Return on average equity


6.75 %

11.16 %

14.84 %


9.72 %

14.90 %

Efficiency ratio


65.47 %

66.36 %

60.54 %


67.10 %

57.81 %









Allowance for loan losses:








Balance, beginning of period


$          4,529,631

$           4,508,446

$            4,024,366


$          3,996,619

$          3,998,392

Charge-offs:








One-to-four family


-

21,457

-


27,466

-

Commercial real estate


-

-

-


-

-

Land/land development


-

-

-


-

-

Commercial  


-

-

-


-

-

Consumer


68,491

73,324

60,866


198,755

139,976

Gross charge-offs


68,491

94,781

60,866


226,221

139,976

Recoveries:








One-to-four family


10,664

586

13,099


11,249

15,689

Commercial real estate


-

-

40


-

478

Land/land development


-

-

-


-

-

Commercial  


200

600

185


3,930

49,910

Consumer


38,301

24,780

19,795


104,728

72,126

Gross recoveries


49,165

25,966

33,119


119,907

138,203

Net charge-offs (recoveries)


19,326

68,815

27,747


106,314

1,773

CECL adjustment


-

-

-


350,000

-

Provision for loan losses


825,000

90,000

-


1,095,000

-

Balance, end of period


$          5,335,305

$           4,529,631

$            3,996,619


$          5,335,305

$          3,996,619









Net loan charge-offs (recoveries) to average loans


0.02 %

0.08 %

0.03 %


0.03 %

0.00 %











 As of 






December 31,

September 30,

December 31,




Non-performing assets


2023

2023

2022




Loans:








Non-accrual


$          6,415,623

$           3,667,841

$            2,463,911




Past 90 days or more and still accruing


-

-

-




Troubled debt restructured


524,970

524,970

525,383




Total non-performing loans


6,940,593

4,192,811

2,989,294




Real estate owned


-

-

-




Other repossessed assets


-

-

-




Total non-performing assets


$          6,940,593

$           4,192,811

$            2,989,294












Non-performing assets to total assets


1.39 %

0.87 %

0.67 %




Non-performing loans to gross loans


1.85 %

1.15 %

0.92 %




Allowance for loan losses to non-performing loans


76.87 %

108.03 %

133.70 %




Allowance for loan losses to gross loans


1.42 %

1.24 %

1.23 %












Other financial ratios








Tangible common equity


9.31 %

9.05 %

9.68 %




Book value per share


$                 19.15

$                  18.08

$                    17.90




Common shares outstanding


2,423,698

2,425,670

2,409,670












(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.






 

Cision View original content:https://www.prnewswire.com/news-releases/northeast-indiana-bancorp-inc-announces-fourth-quarter-and-annual-earnings-302042368.html

SOURCE Northeast Indiana Bancorp, Inc.


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