Published: February 10, 2012
Northeast Indiana Bancorp, Inc. Announces Record Quarterly Earnings and Full Year 2011 Earnings
HUNTINGTON, Ind., Feb. 10, 2012 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced record quarterly earnings for the three months ended December 31, 2011 of $743,000 ($0.60 per diluted common share). This is an increase of $213,000 or 40.2% compared to net income of $530,000 ($0.43 per diluted common share) for the three months ended December 31, 2010. The current quarter's earnings equates to an annualized return on average assets of 1.13% and a return on average equity of 11.61% compared to an ROA of 0.81% and an ROE of 8.70% for the prior year quarter ended December 31, 2010.
The Company also announced full year 2011 earnings of $2.0 million ($1.65 per diluted common share) compared to net income of $2.0 million ($1.64 per diluted common share) for the year ended December 31, 2010. The full year 2011 earnings equates to an ROA of 0.79% and an ROE of 8.13% compared to an ROA of 0.78% and an ROE of 8.49% for the full year 2010
Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "We are extremely proud to have achieved record quarterly earnings as we begin to celebrate our centennial and to have done so in continued challenging economic times. We were also able to increase core deposits, capital ratios and continue to aggressively fund the allowance for loan losses. All of these accomplishments enabled the Board of Directors to again reward our shareholders with an increased dividend in 2011."
Net interest income increased by $443,000 or 5.2% to $9.0 million for the year ended December 31, 2011 when compared to $8.6 million for the year ended December 31, 2010. The Company's net interest margin increased 19 basis points to 3.73% for the twelve months ended December 31, 2011 versus 3.54% for the twelve months ended December 31, 2010.
The Company made a $2.2 million provision for loan loss for the year ended December 31, 2011 compared to a $1.7 million provision for loan loss for the year ended December 31, 2010. Management continues to feel it is prudent to increase the allowance for loan losses by setting aside provisions for loan losses at higher levels during these uncertain economic conditions. The bank recorded net charge-offs of $1.3 million for both the year ended December 31, 2011 as well as for the year ended December 31, 2010.
Noninterest income was relatively unchanged at $2.6 million for both the year ended December 31, 2011 and for the year ended December 31, 2010. An increase in net gains on the sale of securities of $444,000 between yearly periods offset an increase in net losses on the sale of repossessed assets of $274,000 as well as decreases in deposit service charges of $63,000 and decreases in net gain on the sale of loans of $81,000.
Non-interest expenses increased to $6.9 million for the year ended December 31, 2011 compared to $6.7 million for the year ended December 31, 2010. The Company saw increases in occupancy due to higher property taxes as well as a sharp increase in professional fees due to higher collection costs and higher internal audit/consulting fees from increased compliance reviews by third parties. In addition, the Company took increased valuation allowances on repossessed assets due to continued deterioration in real estate owned market values. These increases were partially offset by a decline in FDIC premiums due to a change in the way premiums are calculated by the FDIC in the current year.
Total assets increased $5.4 million to $261.5 million at December 31, 2011 compared to December 31, 2010 assets of $256.1 million. Net loans receivable decreased to $176.9 million at December 31, 2011 from $182.9 million at December 31, 2010. Total deposits increased $13.4 million or 7.6% to $189.8 million at December 31, 2011 from $176.4 million at December 31, 2010. Non-maturity deposit balances increased $17.1 million while time deposit balances declined by $3.7 million over the current twelve month period. Borrowed funds decreased $10.6 million or 19.8% to $43.0 million at December 31, 2011 compared to $53.6 million at December 31, 2010.
Shareholder's equity at December 31, 2011 was $26.1 million compared to the $24.1 million reported at December 31, 2010. The Company paid out cash dividends of $888,000 to shareholders during the year ended December 31, 2011. The book value of NIDB stock was $21.09 per common share as of December 31, 2011 as compared to a book value of $19.46 per common share as of December 31, 2010. The number of outstanding common shares was 1,239,946. The last reported trade of the stock on December 31, 2011 was $12.20 per common share.
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 four full-service Indiana offices in Huntington (2), Warsaw and Fort Wayne. 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.com.
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
-------------------------------------------
(Unaudited)
-----------
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
ASSETS December 31, December 31,
------------ -------------
2011 2010
---- ----
Interest-earning cash and cash
equivalents $11,598,753 $9,450,979
Noninterest earning cash and cash
equivalents 2,495,578 2,045,215
--------- ---------
Total cash and cash equivalents 14,094,331 11,496,194
Securities available for sale 55,117,994 46,477,692
Securities held to maturity (fair
value: Dec. 31, 2011 - $482,807
and Dec. 31, 2010 -$400,000) 482,807 400,000
Loans held for sale 42,500 353,642
Loans receivable, net of allowance
for loan loss Dec. 31, 2011
$4,061,508 and Dec. 31, 2010
$3,227,844 176,893,452 182,913,386
Accrued interest receivable 980,464 981,357
Premises and equipment 2,691,780 2,554,170
Investments in limited liability
partnerships 153,813 233,001
Cash surrender value of life
insurance 7,016,493 6,765,215
Other assets 4,050,116 3,926,783
Total Assets $261,523,750 $256,101,440
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits 14,847,250 14,301,482
Interest bearing deposits 174,988,658 162,099,970
Borrowed Funds 42,955,096 53,565,973
Accrued interest payable and other
liabilities 2,587,575 1,998,866
--------- ---------
Total Liabilities 235,378,579 231,966,291
----------- -----------
Retained earnings - substantially
restricted 26,145,171 24,135,149
Total Liabilities and Shareholders'
Equity $261,523,750 $256,101,440
============ ============
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Twelve Months Ended
December 31, December 31,
2011 2010 2011 2010
---- ---- ---- ----
Total interest income $3,001,900 $3,201,718 $12,135,400 $12,893,073
Total interest expense 691,858 984,273 3,132,982 4,333,959
---------------------- ------- ------- --------- ---------
Net interest income $2,310,042 $2,217,445 $9,002,418 $8,559,114
------------------- ---------- ---------- ---------- ----------
Provision for loan losses 250,000 350,000 2,175,000 1,700,000
Net interest income
after provision for
loan losses $2,060,042 $1,867,445 $6,827,418 $6,859,114
Service charges on deposit
accounts 156,292 153,950 606,339 669,294
Net gain (loss) on
securities - (102,212) 272,542 (171,470)
Net gain on sale of loans 264,354 307,061 706,302 787,771
Net gain (loss) on sale of
repossessed assets (40,611) 81,473 (246,789) 27,390
Net gain (loss) on sale of
fixed assets - (1,068) 92 (968)
Brokerage fees 98,778 80,560 401,968 385,474
Other income 221,111 215,267 877,802 913,526
------------ -------
Total noninterest
income $699,924 $735,031 $2,618,256 $2,611,017
----------------- -------- -------- ---------- ----------
Salaries and employee
benefits 761,710 815,611 3,396,034 3,369,347
Occupancy 245,294 232,580 951,889 887,338
Data processing 215,351 200,322 794,244 766,761
Deposit insurance premiums 50,500 84,000 244,500 317,400
Professional fees 107,291 75,590 396,388 296,711
Correspondent bank charges 28,958 31,629 129,948 124,496
Valuation allowances -
repossessed assets 110,468 148,000 177,968 148,000
Other expense 212,499 196,429 790,098 756,795
------------- ------- ------- ------- -------
Total noninterest
expenses $1,732,071 $1,784,161 $6,881,069 $6,666,848
-----------------
Income before income
tax expense $1,027,895 $818,315 $2,564,605 $2,803,283
-------------------- ---------- -------- ---------- ----------
Income tax expense 285,081 288,555 528,405 790,985
Net Income $742,814 $529,760 $2,036,200 $2,012,298
NORTHEAST INDIANA BANCORP
-------------------------
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
-------------------------------------------
(Unaudited)
-----------
Three Months Ended Twelve Months Ended
December 31, December 31,
2011 2010 2011 2010
---- ---- ---- ----
Basic Earnings per
common share 0.60 0.43 1.65 1.64
Dilutive Earnings per
share 0.60 0.43 1.65 1.64
Net interest margin 3.76% 3.59% 3.73% 3.54%
Return on average
assets 1.13% 0.81% 0.79% 0.78%
Return on average
equity 11.61% 8.70% 8.13% 8.49%
Efficiency Ratio 57.54% 60.43% 59.21% 59.68%
Average shares
outstanding -primary 1,232,525 1,228,770 1,231,921 1,229,383
Average shares
outstanding -diluted 1,232,525 1,228,770 1,232,571 1,229,895
--------------------- --------- --------- --------- ---------
Allowance for loan losses:
Balance at beginning of
period $3,859,859 $2,823,116 $3,227,844 $2,868,468
Charge-offs:
One-to-four family - 9,645 454,569 322,150
Commercial real estate - - 304,478 302,368
Land/land development - - 284,961 -
Commercial 19,248 89,303 143,540 890,409
Consumer 56,465 25,028 217,410 56,314
------ ------ ------- ------
Gross charge-offs 75,713 123,976 1,404,959 1,571,241
------ ------- --------- ---------
Recoveries:
One-to-four family 975 64,525 3,400 67,450
Commercial real estate 5,975 - 5,975 455
Land/land development - - - -
Commercial - 101,304 - 108,095
Consumer 20,412 12,875 54,248 54,617
------ ------ ------ ------
Gross recoveries 27,362 178,704 63,623 230,617
------ ------- ------ -------
Net charge-offs
(recoveries) 48,351 (54,728) 1,341,336 1,340,624
Additions charged to
operations 250,000 350,000 2,175,000 1,700,000
------- ------- --------- ---------
Balance at end of
period $4,061,508 $3,227,844 $4,061,508 $3,227,844
========== ========== ========== ==========
Net loan charge-offs
(recoveries) to
average loans (1) 0.03% (0.03)% 0.73% 0.69%
-------------------- ---- ------ ---- ----
Nonperforming assets At September At December
(000's) At December 31, 30, At June 30, 31,
Loans: 2011 2011 2011 2010
---- ---- ---- ----
Non-accrual $7,474 $6,750 $5,640 $7,275
Past 90 days or more
and still accruing - - - -
Troubled debt
restructured 1,213 - 2,421 737
----- --- ----- ---
Total nonperforming
loans 8,687 6,750 8,061 8,012
Real estate owned 1,242 1,254 1,586 594
Other repossessed
assets - - 1 -
--- --- --- ---
Total nonperforming
assets $9,929 $8,004 $9,648 $8,606
====== ====== ====== ======
Nonperforming assets to
total assets 3.85% 3.10% 3.78% 3.36%
Nonperforming loans to
total loans 4.80% 3.68% 4.53% 4.30%
Allowance for loan
losses to
nonperforming loans 46.76% 57.19% 44.77% 40.29%
Allowance for loan
losses to total
receivable 2.30% 2.11% 2.07% 1.76%
At December 31,
2011 2010
---- ----
Stockholders' equity as
a % of total assets 9.99% 9.42%
Book value per share $21.09 $19.46
Common shares
outstanding- EOP 1,239,946 1,239,946
(1) Ratios for the three-month periods are annualized.
SOURCE Northeast Indiana Bancorp, Inc.
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