Press Release
Email page PDF view Print view Email Alert Social Media Sharing

NORTHEAST INDIANA BANCORP, INC. ANNOUNCES SECOND QUARTER 2022 EARNINGS

Company Release -
7/18/2022 9:00 AM ET

HUNTINGTON, Ind., July 18, 2022 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB:  NIDB), the parent company of First Federal Savings Bank, today announced net income for the six months ended June 30, 2022 was $3.4 million, or $2.81 per diluted common share, compared to net income of $3.8 million, or $3.19 per diluted common share for the six months ended June 30, 2021.  The current six months earnings equate to an annualized ROA of 1.61% and an annualized ROE of 14.96% compared to an annualized ROA of 1.90% and an annualized ROE of 16.41% for the six months ended June 30, 2021. 

Net income for the second quarter ended June 30, 2022 was $1.6 million, or $1.33 per diluted common share, compared to net income of $1.9 million, or $1.61 per diluted common share for the second quarter ended June 30, 2021.  The current quarter earnings equate to an annualized return on average assets (ROA) of 1.52% and an annualized return on average equity (ROE) of 14.81% compared to an annualized ROA of 1.88% and an annualized ROE of 16.47% for the second quarter June 30, 2021. 

The declines in net income are primarily related to a reduction in gain on sale of mortgage loans of $800,000 for the six months ended 2022 compared to the same period in 2021 and a reduction of $414,000 for the current quarter 2022 compared to the same period in 2021.  Mortgage production slowed in the first half of 2022 compared to the first half 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 $506,000 for the six months ended 2022 compared to the same period in 2021 and an increase of $233,000 for the second quarter of 2022 compared to the second quarter of 2021.

Total Assets decreased $4.2 million to $413.4 million at June 30, 2022 compared to $417.7 million at December 31, 2021.  This decrease was primarily due to a $12.1 million reduction in the market value of the investment portfolio due to the volatility of interest rates in the first half of 2022.   Net loans increased $13.3 million, or 9.7% on an annualized basis to $287.6 million at June 30, 2022 compared to $274.3 million at December 31, 2021.  Total deposits increased $15.5 million, or 9.1% on an annualized basis to $357.4 million at June 30, 2022 compared to $341.9 million at December 31, 2021.  Stockholder's equity decreased $6.7 million to $42.0 million at June 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 $9.4 million in the first half of 2022 due to unrealized losses in the investment portfolio.  The book value of NIDB's stock was $34.88 per common share and tangible common equity ratio was 10.17% as of June 30, 2022. 

Michael S. Zahn, President and CEO, commented, "I am very pleased with our performance in 2022.  Our net interest income continues to grow as we maintain a consistent net interest margin with solid loan growth.  Our focus on the well-being of our clients and our employees should continue to promote our communities and enhance shareholder value."

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.firstfedindianabank.

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






June 30,

December 31,

June 30,

Balance Sheet (Unaudited)

2022

2021

2021



(Audited)


Assets




Non-interest earning cash and cash equivalents

$          4,216,886

$           3,595,989

$             1,897,678

Interest-earning cash and cash equivalents

165,720

12,185,155

9,468,173

Total cash and cash equivalents

4,382,607

15,781,144

11,365,850

Interest-earning time deposits

1,965,000

2,210,000

2,210,000

Securities available for sale

78,495,626

86,644,434

81,836,452

Securities held to maturity

12,081,645

11,916,667

12,010,518

Loans held for sale

161,200

538,635

1,116,150

Loans, gross

291,571,122

278,265,486

281,445,137

Allowance for loan losses

(3,982,194)

(3,998,392)

(3,987,013)

Loans, net

287,588,928

274,267,094

277,458,123

Accrued interest receivable

1,648,755

1,489,036

1,595,277

Premises and equipment

7,187,929

6,937,418

5,554,232

FHLB Stock

2,101,600

2,426,500

2,426,500

Investment in limited partnerships

1,378,334

1,528,334

1,678,334

Cash surrender value of life insurance

11,480,059

11,331,941

10,200,706

Real estate owned and other repossessed assets

-

-

255,000

Other assets

4,943,047

2,585,660

2,230,090

Total Assets

$     413,414,729

$      417,656,863

$        409,937,232





Liabilities and Stockholders' Equity




Non-interest bearing deposits

$        59,310,279

$         56,435,410

$          56,179,514

Interest bearing deposits

298,125,285

285,513,161

253,839,751

Borrowed funds

11,200,000

23,001,166

48,483,160

Accrued interest payable and other liabilities

2,747,398

4,013,574

3,469,635

Total Liabilities

371,382,961

368,963,311

361,972,059

Stockholders' equity

42,031,768

48,693,552

47,965,173

Total Liabilities and Stockholders' Equity

$     413,414,729

$      417,656,863

$        409,937,232

 

 


 Three months ended 


Six months ended


June 30,

March 31, 

June 30,


June 30,

June 30,

Income Statement (Unaudited)

2022

2022

2021


2022

2021








Net interest income







Total interest income

$          3,990,602

$           4,033,571

$             3,882,113


$          8,024,174

$          7,866,724

Total interest expense

324,499

291,129

448,556


615,628

964,464

Net interest income

3,666,104

3,742,442

3,433,558


7,408,546

6,902,261

Provision for loan losses

-

-

-


-

120,000

Net interest income after provision for loan losses

3,666,104

3,742,442

3,433,558


7,408,546

6,782,261








Non-interest income







Service charges on deposit accounts

186,399

154,398

156,294


340,797

307,116

Interchange fees

202,532

186,342

203,685


388,873

385,746

Loan servicing fees

88,523

104,403

26,206


192,926

56,453

Net gain on sale of loans

189,597

242,882

603,135


432,478

1,232,624

Net loss on sale of repossessed assets

-

-

-


-

-

Brokerage fees

57,014

54,151

54,878


111,166

132,215

Increase in cash surrender value of life insurance

72,984

75,134

64,631


148,118

129,263

Other income

80,077

87,989

94,781


168,066

187,413

Total non-interest income

877,126

905,298

1,203,611


1,782,424

2,430,830








Non-interest expense







Salaries and employee benefits

1,334,097

1,410,259

1,190,494


2,744,356

2,320,654

Occupancy

328,827

282,467

254,597


611,294

525,872

Data processing

360,896

356,919

344,049


717,815

669,041

Deposit insurance premiums

28,500

30,500

25,500


59,000

50,000

Professional fees

142,591

80,905

67,477


223,496

161,761

Advertising and marketing fees

38,684

57,088

38,890


95,772

95,487

Correspondent bank charges

31,310

25,742

26,660


57,052

52,264

Other expense

368,060

242,580

312,668


610,640

622,606

Total non-interest expense

2,632,965

2,486,461

2,260,335


5,119,425

4,497,685








Income before income taxes

1,910,266

2,161,279

2,376,834


4,071,544

4,715,405

Income tax expense

314,737

380,167

449,105


694,904

894,769

Net income

$          1,595,529

$           1,781,112

$             1,927,729


$          3,376,640

$          3,820,636

 

 



 Three months ended 


Six months ended




June 30,

March 31, 

June 30,


June 30,

June 30,


Selected Financial Ratios and Other Financial Data (Unaudited)

2022

2022

2021


2022

2021











Average shares outstanding - basic


1,199,885

1,199,001

1,196,785


1,199,512

1,198,558


Average shares outstanding - diluted


1,200,059

1,199,318

1,196,785


1,199,757

1,198,558


Basic earnings per share


$                   1.33

$                    1.49

$                      1.61


$                    2.82

$                   3.19


Diluted earnings per share


$                   1.33

$                    1.49

$                      1.61


$                    2.81

$                   3.19


Net interest margin


3.66 %

3.80 %

3.72 %


3.73 %

3.63 %


Return on average assets


1.52 %

1.70 %

1.88 %


1.61 %

1.90 %


Return on average equity


14.81 %

15.07 %

16.47 %


14.96 %

16.41 %


Efficiency ratio


57.95 %

53.50 %

48.74 %


55.70 %

48.19 %











Allowance for loan losses:









Balance, beginning of period


$          4,004,074

$           3,998,392

$             3,974,475


$          3,998,392

$          3,851,897


Charge-offs:









One-to-four family


-

-

-


-

-


Commercial real estate


-

-

15,194


-

15,194


Land/land development


-

-

-


-

-


Commercial  


-

-

-


-

-


Consumer


40,072

17,435

11,828


57,507

62,088


Gross charge-offs


40,072

17,435

27,022


57,507

77,282


Recoveries:









One-to-four family


974

955

1,398


1,929

2,877


Commercial real estate


113

218

10,195


331

10,195


Land/land development


-

-

-


-

-


Commercial  


-

9,725

350


9,725

740


Consumer


17,105

12,219

27,617


29,324

78,586


Gross recoveries


18,192

23,117

39,560


41,309

92,398


Net charge-offs (recoveries)


21,880

(5,682)

(12,538)


16,198

(15,116)


Provision for loan losses


-

-

-


-

120,000


Balance, end of period


$          3,982,194

$           4,004,074

$             3,987,013


$          3,982,194

$          3,987,013











Net loan charge-offs (recoveries) to average loans


0.03 %

-0.01 %

-0.02 %


0.01 %

-0.01 %


 



 As of 



June 30,

March 31, 

June 30,

Non-performing assets


2022

2022

2021

Loans:





Non-accrual


$          2,248,220

$           2,023,525

$             1,800,365

Past 90 days or more and still accruing


-

-

-

Troubled debt restructured


475,210

363,992

361,570

Total non-performing loans


2,723,430

2,387,517

2,161,935

Real estate owned


-

-

255,000

Other repossessed assets


-

-

-

Total non-performing assets


$          2,723,430

$           2,387,517

$             2,416,935






Non-performing assets to total assets


0.66 %

0.57 %

0.59 %

Non-performing loans to gross loans


0.93 %

0.86 %

0.77 %

Allowance for loan losses to non-performing loans


146.22 %

167.47 %

184.42 %

Allowance for loan losses to gross loans


1.37 %

1.44 %

1.42 %






Other financial ratios





Tangible common equity


10.17 %

10.80 %

11.70 %

Book value per share


$                 34.88

$                  37.60

$                    39.87

Common shares outstanding


1,205,135

1,205,435

1,202,985






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




 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/northeast-indiana-bancorp-inc-announces-second-quarter-2022-earnings-301587707.html

SOURCE Northeast Indiana Bancorp, Inc.

View all news