2022-04-14 | OTCQB:NIDB | Press release

By Audrey R. Bowser Last updated Apr 14, 2022

HUNTINGTON, Ind., April 14, 2022 /PRNewswire/ — Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, reported net income of $1.78 million ($1.49 per diluted common share) for the first quarter ended March, 31st2022. This pay level was a decrease of $112,000or 5.9% over earnings for the quarter ended March 31, 2021 of $1.89 million ($1.57 per diluted common share). Current earnings for the three months correspond to an annualized return on average assets (ROA) of 1.70% and a return on average equity (ROE) of 15.07%, compared to an ROA of 1.88% and an ROE of 16.47% for the prior year quarter ended March, 31st2021.

Total assets increased $1.8 millioni.e. 1.8% at an annualized rate, at $419.5 million to March 31, 2022 compared to the total assets of $417.7 million to the 31st of December2021. Total loans increased $5.4 millioni.e. 7.8% annualized, at $279.6 million to March 31, 2022 compared to the total loans of $274.3 million to the 31st of December2021. Total deposits increased $14.7 millioni.e. 17.2% annualized, at $356.6 million to March 31, 2022 compared to $341.9 million to the 31st of December2021.

Equity has decreased $3.4 million for $45.3 million to March 31, 2022 compared to $48.7 million to the 31st of December2021. The decrease in equity is due to the decrease in accumulated other comprehensive income $4.8 million due to a reduction in the fair value of the investment portfolio due to rising market interest rates. Book value of NIDB shares declined $2.80 for $37.60 per ordinary share at March 31, 2022 compared to $40.40 to the 31st of December2021. The number of common shares outstanding was 1,205,435 as of March, 31st2022. The last reported transaction of the action on April 11, 2022 been $46.60 per ordinary share.

Net interest income increased $274,000 in the first quarter of 2022 compared to the same period in 2021. The increase is the result of an eight basis point increase in net interest margin to 3.80% and an increase in average earning assets of $19.0 million for the first quarter of 2022 compared to the first quarter of 2021.

Non-interest income decreased $323,000 in the first quarter of 2022 compared to the same period in 2021. The decrease is the result of a decrease in $387,000 in gain on the sale of loans due to the slowdown in mortgage refinances in the first quarter of 2022. Non-interest expenses increased $248,000 in the first quarter of 2022 compared to the first quarter of 2021. The increase is mainly due to a $280,000 increased salaries and benefits due to fewer FAS 91 salary deferrals in Q1 2022 without the PPP production and mortgage refinancing activity that was more prevalent in Q1 2021.

Michael S. Zahnthe Chairman and CEO said: “We are very pleased with the start of 2022. We continue to see strong loan and deposit growth in our markets and believe we are well positioned to weather rising rates.

Northeast Indiana Bancorp, Inc. is headquartered at 648 N. Jefferson Street, Huntington, Indiana. The company offers a full range of banking and financial brokerage services to its customers through its head office in Huntington and five full services Indiana offices at Huntington (2), Warsaw and Fort Wayne (2). The Company is listed on OTC Markets Group, Inc. (www.otcmarkets.com) using the OTCQB platform under the symbol “NIDB”. Our website 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 matters. Factors that could cause future results to differ materially include, but are not limited to, general economic conditions, changes in interest rates, loan demand and competition. Other factors include changes in accounting principles, policies or guidelines; legislative or regulatory changes; and other economic, competitive, regulatory and technological factors affecting each company’s operations, prices, products and services.

BANCORP OF NORTHEAST INDIANA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

*ASSETS*														March, 31st, 2022		The 31st of December, 2021
Interest-bearing cash and cash equivalents														$	8,040,570	$	12 185 155
Cash and cash equivalents not bearing interest														4,216,611		3,595,989
Cash and cash equivalents														12,257,181		15,781,144
Interest-bearing term deposits														2,210,000		2,210,000
Titles available for sale														85,245,995		86,644,434
Securities held to maturity														11,791,172		11,916,667
Loans held for sale														1,313,598		538 635
Loans receivable, net of allowance for loan losses March 31, 2022 $4,004,074 and December 31, 2021 $3,998,392														279 624 004		274 267 094
Accrued interest receivable														1,523,198		1,489,036
Premises and equipment														7,122,223		6,937,418
FHLB-share														2,101,600		2,426,500
Investments in limited liability companies														1,453,334		1,528,334
Cash value of life insurance														11,407,075		11,331,941
other assets														3,451,487		2,585,660
*Total assets*														$	419 500 867	$	417 656 863
*LIABILITIES AND EQUITY*
Non-interest bearing deposits														62,072,982		56,435,410
Interest-bearing deposits														294,557,300		285 513 161
Borrowed funds														13,925,706		23,001,166
Accrued interest payable and other liabilities														3,622,201		4,013,574
*Total responsibilities*														374 178 189		368 963 311

Retained earnings – substantially restricted														45,322,678		48,693,552
*Total Liabilities and Equity*														$	419 500 867	$		417 656 863

CONSOLIDATED INCOME STATEMENTS

		Three months completed
		March, 31st,
		2022							2021
Total interest income		$		4,033,571					$		3,984,611
Total interest expense				291 129							515 909
Net interest income		$		3,742,442					$		3,468,702
Allowance for loan losses				–							120,000
Net interest income after provision for loan losses		$		3,742,442					$		3,348,702
Service charges on deposit accounts				154,398							150,822
Interchange fees				162,545							157 127
Net gain on sale of loans				242,882							629 489
Net loss on sale of repossessed assets				–							–
Brokerage fees				54 151							77,337
Increase in life insurance cash value				75 134							64,631
Other income				215,866							148,302
Total non-interest income		$		904 976					$		1,227,708
Salaries and benefits				1,410,259							1,130,162
Occupation				282,467							271 275
Data processing				356,919							324,992
Deposit insurance premiums				30,500							24,500
Professional fees				80,905							94,284
Advertising and marketing costs				57,088							56,597
Correspondent bank fees				25,742							25,604
Other expenses				242 259							310 424
Total non-interest expense		$		2,486,139					$		2,237,838
Profit before tax expenses		$		2,161,279					$		2,338,572
income tax expense				380 167							445,664
Net revenue		$		1,781,112					$		1 892 908

BANCORP OF NORTHEAST INDIANA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
	Three months completed March, 31st,
	2022							2021
Basic earnings per common share	1.49							1.58
Dilutive earnings per share	1.49							1.57
Net interest margin	3.80%							3.72%
Average return on assets	1.70%							1.88%
return on average equity	15.07%							16.47%
Efficiency report	53.50%							47.65%
Average number of shares outstanding – primary	1,199,001							1,200,351
Average number of shares outstanding – diluted	1,199,318							1,200,618
Allowance for loan losses:
Balance at beginning of period	$				3,998,392			$				3,851,897
Dump :
Family of 1 to 4 people	–							–
Commercial real estate	–							–
Land/Land development	–							–
Commercial	–							–
Consumer	17,435							50,261
Gross postings	17,435							50,261
Recoveries:
Family of 1 to 4 people	955							1,479
Commercial real estate	218							–
Land/Land development	–							–
Commercial	9,725							390
Consumer	12,219							50,970
Gross recoveries	23 117							52,839
Net charges/(recoveries)	(5,682)							(2,578)
Surcharges charged to operations	–							120,000
Balance at end of period	$				4,004,074			$				3,974,475

Net amortizations/(recoveries) on average loans (1)	(0.01%)							(0.00%)

Non-performing assets (in thousands)	As of March 31,							As of December 31,
Loans:	2022							2021
Not cumulated			$			2,024				$			2,859
90 or more days past and still accumulating	–							–
Restructured distressed debt	364							365
Total non-performing loans	2,388							3,224
Real estate owned	–							–
Other assets taken over	–							–
Total non-performing assets			$			2,388				$			3,224

Non-performing assets to total assets	0.57%						0.77%
Non-performing loans to total loans	0.84%						1.16%
Provision for loan losses to non-performing loans	167.71%						124.01%
Allowance for loan losses to net loans receivable	1.41%						1.44%


	As of March 31,
	2022							2021

Equity as % of total assets	10.80%							11.32%
Book value per share			$37.60							$38.22
Outstanding Common Shares – EOP	1,205,435							1,202,985

(1) The ratios for the three-month periods are annualized.

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SOURCE Northeast Indiana Bancorp, Inc.