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.
(PRNewsfoto/Northeast Indiana Bancorp, Inc.)
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.
