NORTHEAST INDIANA BANCORP, INC. ANNOUNCES THIRD QUARTER 2022 EARNINGS

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October 21, 2022 11:00 AM EDT

HUNTINGTON, Ind., Oct. 21, 2022 /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, 2022 was $5.0 million, or $4.17 per diluted common share, compared to net income of $5.8 million, or $4.80 per diluted common share for the nine months ended September 30, 2021.  The current nine months earnings equate to an annualized ROA of 1.58% and an annualized ROE of 14.94% compared to an annualized ROA of 1.89% and an annualized ROE of 16.23% for the nine months ended September 30, 2021. 

Net income for the third quarter ended September 30, 2022 was $1.6 million, or $1.35 per diluted common share, compared to net income of $1.9 million, or $1.62 per diluted common share for the third quarter ended September 30, 2021.  The current quarter earnings equate to an annualized return on average assets (ROA) of 1.53% and an annualized return on average equity (ROE) of 15.09% compared to an annualized ROA of 1.88% and an annualized ROE of 15.90% for the third quarter ended September 30, 2021. 

The declines in net income are primarily related to a reduction in gain on sale of mortgage loans of $1.0 million for the nine months ended 2022 compared to the same period in 2021 and a reduction of $218,000 for the current quarter 2022 compared to the same period in 2021.  Mortgage production declined during 2022 compared to the first nine months 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 $490,000 for the nine months ended 2022 compared to the same period in 2021.

Total Assets increased $11.8 million to $429.4 million at September 30, 2022 compared to $417.7 million at December 31, 2021.  This increase was primarily due to net loans increasing $30.5 million, or 14.8% on an annualized basis, to $304.7 million as of September 30, 2022 compared to $274.3 million as of December 31, 2021. This increase was partially reduced by a $13.8 million reduction in the market value of the investment portfolio due to the volatility of interest rates during 2022.  Total deposits increased $14.8 million, or 5.8% on an annualized basis to $356.7 million at September 30, 2022 compared to $341.9 million at December 31, 2021.  Stockholder's equity decreased $6.8 million to $42.0 million at September 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 $10.8 million in the first nine months of 2022 due to unrealized losses in the investment portfolio.  The book value of NIDB's stock was $34.85 per common share and tangible common equity ratio was 9.78% as of September 30, 2022. 

Michael S. Zahn, President and CEO, commented "We are having another strong year in 2022.  Our focus on the well-being of our clients and our employees should continue to promote our communities and enhance shareholder value.  We continue to see strong loan demand in this ever-changing interest rate environment."

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)

2022

2021

2021

(Audited)

Assets

Non-interest earning cash and cash equivalents

$          3,531,435

$           3,595,989

$             3,709,841

Interest-earning cash and cash equivalents

930,052

12,185,155

14,716,427

Total cash and cash equivalents

4,461,487

15,781,144

18,426,268

Interest-earning time deposits

985,000

2,210,000

2,210,000

Securities available for sale

77,283,002

86,644,434

80,089,033

Securities held to maturity

12,072,056

11,916,667

11,926,106

Loans held for sale

494,900

538,635

1,408,000

Loans, gross

308,763,256

278,265,486

282,486,114

Allowance for loan losses

(4,024,366)

(3,998,392)

(4,013,967)

Loans, net

304,738,890

274,267,094

278,472,147

Accrued interest receivable

1,742,598

1,489,036

1,561,054

Premises and equipment

7,211,971

6,937,418

6,806,146

FHLB Stock

2,101,600

2,426,500

2,426,500

Investment in limited partnerships

1,303,334

1,528,334

1,603,334

Cash surrender value of life insurance

11,554,663

11,331,941

10,265,336

Real estate owned and other repossessed assets

-

-

5,000

Other assets

5,484,511

2,585,660

2,191,937

Total Assets

$     429,434,012

$      417,656,863

$        417,390,861

Liabilities and Stockholders' Equity

Non-interest bearing deposits

$       66,847,065

$        56,435,410

$          59,659,995

Interest bearing deposits

289,856,179

285,513,161

267,089,646

Borrowed funds

28,000,000

23,001,166

37,711,346

Accrued interest payable and other liabilities

2,729,801

4,013,574

3,347,304

Total Liabilities

387,433,045

368,963,311

367,808,291

Stockholders' equity

42,000,967

48,693,552

49,582,570

Total Liabilities and Stockholders' Equity

$     429,434,012

$      417,656,863

$        417,390,861

 

 Three months ended 

Nine months ended

September 30,

June 30,

September 30,

September 30,

September 30,

Income Statement (Unaudited)

2022

2022

2021

2022

2021

Net interest income

Total interest income

$          4,456,152

$           3,990,602

$             4,381,819

$        12,480,325

$       12,248,544

Total interest expense

509,035

324,499

418,799

1,124,663

1,383,263

Net interest income

3,947,117

3,666,104

3,963,020

11,355,662

10,865,281

Provision for loan losses

-

-

-

-

120,000

Net interest income after provision for loan losses

3,947,117

3,666,104

3,963,020

11,355,662

10,745,281

Non-interest income

Service charges on deposit accounts

201,818

186,399

181,654

542,615

488,770

Interchange fees

201,646

202,532

192,486

590,520

578,232

Loan servicing fees

98,371

88,523

40,549

291,297

97,002

Net gain on sale of loans

114,804

189,597

332,411

547,282

1,565,034

Net loss on sale of repossessed assets

-

-

(2,954)

-

(2,954)

Brokerage fees

51,158

57,014

59,658

162,324

191,873

Increase in cash surrender value of life insurance

74,604

72,984

64,631

222,722

193,894

Other income

80,456

80,077

97,881

248,521

285,294

Total non-interest income

822,857

877,126

966,316

2,605,281

3,397,145

Non-interest expense

Salaries and employee benefits

1,510,552

1,334,097

1,408,743

4,254,907

3,729,398

Occupancy

372,801

328,827

262,437

984,095

788,310

Data processing

371,686

360,896

350,898

1,089,502

1,019,939

Deposit insurance premiums

28,500

28,500

25,500

87,500

75,500

Professional fees

117,130

142,591

96,921

340,626

258,682

Advertising and marketing fees

83,237

38,684

64,072

179,008

159,559

Correspondent bank charges

32,669

31,310

27,977

89,721

80,241

Other expense

307,363

368,060

310,187

918,003

932,791

Total non-interest expense

2,823,938

2,632,965

2,546,735

7,943,362

7,044,420

Income before income taxes

1,946,036

1,910,266

2,382,601

6,017,581

7,098,006

Income tax expense

323,085

314,737

443,200

1,017,989

1,337,969

Net income

$          1,622,951

$           1,595,529

$             1,939,401

$          4,999,592

$          5,760,037

 Three months ended 

Nine months ended

September 30,

June 30,

September 30,

September 30,

September 30,

Selected Financial Ratios and Other Financial Data (Unaudited)

2022

2022

2021

2022

2021

Average shares outstanding - basic

1,199,885

1,199,885

1,197,861

1,199,736

1,198,323

Average shares outstanding - diluted

1,199,957

1,200,059

1,198,028

1,199,924

1,200,079

Basic earnings per share

$                    1.35

$                     1.33

$                      1.62

$                    4.17

$                   4.81

Diluted earnings per share

$                    1.35

$                     1.33

$                      1.62

$                    4.17

$                   4.80

Net interest margin

3.88 %

3.66 %

4.06 %

3.77 %

3.78 %

Return on average assets

1.53 %

1.52 %

1.88 %

1.58 %

1.89 %

Return on average equity

15.09 %

14.81 %

15.90 %

14.94 %

16.23 %

Efficiency ratio

59.20 %

57.95 %

51.66 %

56.90 %

49.39 %

Allowance for loan losses:

Balance, beginning of period

$          3,982,194

$           4,004,074

$             3,987,013

$          3,998,392

$          3,851,897

Charge-offs:

One-to-four family

-

-

-

-

-

Commercial real estate

-

-

-

-

15,194

Land/land development

-

-

-

-

-

Commercial  

-

-

-

-

-

Consumer

21,604

40,072

13,103

79,111

75,191

Gross charge-offs

21,604

40,072

13,103

79,111

90,385

Recoveries:

One-to-four family

661

974

7,503

2,590

10,380

Commercial real estate

108

113

9,086

439

19,281

Land/land development

-

-

-

-

-

Commercial  

40,000

-

250

49,725

990

Consumer

23,007

17,105

23,218

52,331

101,804

Gross recoveries

63,776

18,192

40,057

105,085

132,455

Net charge-offs (recoveries)

(42,172)

21,880

(26,954)

(25,974)

(42,070)

Provision for loan losses

-

-

-

-

120,000

Balance, end of period

$          4,024,366

$           3,982,194

$             4,013,967

$          4,024,366

$          4,013,967

Net loan charge-offs (recoveries) to average loans

-0.06 %

0.03 %

-0.04 %

-0.01 %

-0.02 %

 

As of 

September 30,

June 30,

September 30,

Non-performing assets

2022

2022

2021

Loans:

Non-accrual

$          2,683,491

$           2,248,220

$             2,466,772

Past 90 days or more and still accruing

-

-

-

Troubled debt restructured

525,383

475,210

360,771

Total non-performing loans

3,208,874

2,723,430

2,827,543

Real estate owned

-

-

5,000

Other repossessed assets

-

-

-

Total non-performing assets

$          3,208,874

$           2,723,430

$             2,832,543

Non-performing assets to total assets

0.75 %

0.66 %

0.68 %

Non-performing loans to gross loans

1.04 %

0.93 %

1.00 %

Allowance for loan losses to non-performing loans

125.41 %

146.22 %

141.96 %

Allowance for loan losses to gross loans

1.30 %

1.37 %

1.42 %

Other financial ratios

Tangible common equity

9.78 %

10.17 %

11.88 %

Book value per share

$                 34.85

$                  34.88

$                    41.22

Common shares outstanding

1,205,135

1,205,135

1,202,985

(1) Ratios for three and nine-month periods are annualized

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/northeast-indiana-bancorp-inc-announces-third-quarter-2022-earnings-301655992.html

SOURCE Northeast Indiana Bancorp, Inc.


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