HUNTINGTON, Ind., April 14 /PRNewswire-FirstCall/ -- Northeast Indiana
Bancorp, Inc. (OTC Bulletin Board: NIDB), the parent company of First Federal
Savings Bank, has announced net income of $448,000 ($0.32 per diluted common
share) for the first quarter ended March 31, 2006 compared to $399,000 ($0.28
per diluted common share) for the first quarter ended March 31, 2005. The
current three months earnings equates to an annualized return on average
assets (ROA) of 0.78% and a return on average equity (ROE) of 7.42% as
compared to an ROA of 0.70% and an ROE of 6.10% for the three months ended
March 31, 2005.
Net interest income decreased to $1.4 million for the quarter ended March
31, 2006 when compared to $1.6 million for the quarter ended March 31, 2005.
The decrease was primarily related to rates increasing faster on interest
bearing liabilities than on interest earning assets between periods. The
volume of nonperforming loans in the current quarter also impacted interest
income negatively for the three months ended March 31, 2006. The Company's
net interest margin declined to 2.60% for the current quarter compared to
2.96% for the year earlier quarter.
The Company made a $45,000 provision for loan loss during the quarter
ended March 31, 2006 compared to a $20,000 provision for loan loss for the
quarter ended March 31, 2005. Net charge-offs were little changed at $20,000
for the quarter ended March 31, 2006 compared to $15,000 for the quarter ended
March 31, 2005.
Noninterest income increased by $194,000 or 42.9% to $646,000 for the
current period compared to $452,000 during the year earlier period. This
increase was primarily due to an increase in net gains on the sale of loans
between periods as management completed the sale of the credit card portfolio
which generated a one-time gain of $217,000. Most other noninterest income
areas were relatively unchanged.
On a positive note, noninterest expense decreased $94,000 or 6.3% to $1.4
million for the quarter ended March 31, 2006 compared to $1.5 million for the
quarter ended March 31, 2005. This decrease came primarily in salaries and
employee benefits and professional fees as well as smaller declines in data
processing and other expenses.
The salaries and employee benefits decline was due to fewer full-time
equivalents in the current quarter ended March 31, 2006 compared to the year
earlier quarter. The decline in professional fees and other expenses was
primarily related to the Company's deregistration process from the SEC and
delisting from The NASDAQ National Market that was completed during the
quarter ended June 30, 2005.
Net loans receivable increased $3.3 million or 1.9% to $179.0 million at
March 31, 2006 when compared to $175.7 million at December 31, 2005. Deposits
increased by $4.0 million or 3.1% to $132.5 million during the same time
frame. Borrowed funds declined to $73.4 million at March 31, 2006 from $78.8
million at December 31, 2005 due to decreases in repurchase agreement account
balances.
Shareholders' equity increased to $24.5 million at March 31, 2006 compared
to $23.9 million at December 31, 2005. The Company repurchased 12,202 shares
on the open market at an average cost of $17.35, for a total cost of $211,725
during the quarter ended March 31, 2006. In the opinion of management, these
repurchases help leverage Northeast Indiana Bancorp's remaining equity and
tend to improve return on shareholders' equity. The Company has approximately
50,000 shares that may be repurchased under the current stock repurchase
program, which was previously announced. In addition to current quarter
earnings increasing shareholders' equity, there were 44,624 stock options
exercised during the three months ended March 31, 2006 that provided an
additional $456,383 in capital.
The book value of NEIB's stock was $17.62 per common share as of March 31,
2006. The number of outstanding common shares was 1,389,059. The last
reported trade of the stock on April 12, 2006 was $16.85 per common share.
Northeast Indiana Bancorp, Inc. is headquartered at 648 North Jefferson
Street, Huntington, Indiana. The company offers a full array of banking and
financial brokerage services to its customers through three full service
branches located in Huntington, Indiana. The Company is traded on the Over
the Counter Bulletin Board ("OTCBB") under the symbol "NIDB".
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 March 31, December 31,
2006 2005
Interest-earning cash and cash equivalents $927,617 $4,081,948
Noninterest earning cash and cash equivalents 1,720,677 3,365,826
Total cash and cash equivalents 2,648,294 7,447,774
Securities available for sale 36,456,992 36,894,920
Loans receivable, net of allowance for
loan loss March 31, 2006$3,118,986
and December 31, 2005 $3,093,985 178,960,387 175,694,369
Accrued interest receivable 908,639 952,512
Premises and equipment 2,454,308 2,504,341
Investments in limited liability partnerships 1,081,884 1,139,691
Cash surrender value of life insurance 5,612,717 5,557,887
Other assets 4,208,930 2,646,156
Total Assets $232,332,151 $232,837,650
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits 132,512,757 128,505,603
Borrowed Funds 73,409,492 78,793,197
Accrued interest payable and
other liabilities 1,936,246 1,685,499
Total Liabilities 207,858,495 208,984,299
Retained earnings - substantially
restricted 24,473,656 23,853,351
Total Liabilities and
Shareholders' Equity $232,332,151 $232,837,650
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31,
2006 2005
Total interest income $3,231,961 $3,054,386
Total interest expense 1,837,166 1,463,484
Net interest income $1,394,795 $1,590,902
Provision for loan losses 45,000 20,000
Net interest income after
provision for loan losses $1,349,795 $1,570,902
Service charges on deposit accounts 147,507 146,526
Net gain on sale of loans 233,633 24,497
Net gain (loss) on sale of
repossessed assets (3,909) 2,716
Brokerage fees 81,433 98,437
Increase in cash surrender value
of life insurance 54,830 50,171
Other income 132,702 129,889
Total noninterest income $646,196 $452,236
Salaries and employee benefits 793,884 838,265
Occupancy 123,713 120,070
Data processing 157,648 171,518
Deposit insurance premiums 4,325 4,504
Professional fees 42,605 79,161
Correspondent bank charges 70,620 62,615
Other expense 208,394 218,814
Total noninterest expenses $1,401,189 $1,494,947
Income before income tax expenses $594,802 $528,191
Income tax expenses 146,711 129,392
Net Income $448,091 $398,799
NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Three Months Ended
March 31,
2006 2005
Basic Earnings per common share 0.33 0.29
Dilutive Earnings per share 0.32 0.28
Net interest margin 2.60% 2.96%
Return on average assets 0.78% 0.70%
Return on average equity 7.42% 6.10%
Average shares outstanding - primary 1,378,603 1,396,838
Average shares outstanding - diluted 1,382,623 1,434,395
Allowance for loan losses:
Balance at beginning of period $3,093,985 $1,357,505
Charge-offs:
One-to-four family 6,346 7,029
Commercial real estate - -
Commercial - 1,305
Consumer 34,226 59,183
Gross charge-offs 40,572 67,517
Recoveries:
One-to-four family - -
Commercial real estate 2,548 7,893
Commercial - 11,552
Consumer 18,025 33,520
Gross recoveries 20,573 52,965
Net charge-offs (recoveries) 19,999 14,552
Additions charged to operations 45,000 20,000
Balance at end of period $3,118,986 $1,362,953
Net loan charge-offs (recoveries)
to average loans (1) 0.04% 0.03%
Nonperforming assets (000's) At March 31, At December 31,
Loans: 2006 2005
Non-accrual $5,145 $4,395
Past 90 days or more and
still accruing - -
Troubled debt restructured 1,658 1,658
Total nonperforming loans 6,803 6,053
Real estate owned 73 -
Other repossessed assets 10 28
Total nonperforming assets $6,886 $6,081
Nonperforming assets to total assets 2.96% 2.61%
Nonperforming loans to total loans 3.74% 3.39%
Allowance for loan losses to
nonperforming loans 45.85% 51.12%
Allowance for loan losses to
net loans receivable 1.71% 1.73%
At March 31,
2006 2005
Stockholders' equity as a % of
total assets 10.53% 11.18%
Book value per share $17.62 $18.34
Common shares outstanding - EOP 1,389,059 1,417,279
(1) Ratios for the three-month periods are annualized.
SOURCE Northeast Indiana Bancorp, Inc.
-0- 04/14/2006
/CONTACT: Randy J. Sizemore, Senior Vice President, CFO of Northeast
Indiana Bancorp, Inc., +1-260-358-4680/
/Web site: http://www.firstfedhuntington.com /
(NIDB)
CO: Northeast Indiana Bancorp, Inc.
ST: Indiana
IN: FIN OTC
SU: ERN
TM-ML
-- DEF005A --
9979 04/14/200610:26 EDThttp://www.prnewswire.com