HUNTINGTON, Ind., Feb. 12 /PRNewswire-FirstCall/ -- Northeast Indiana Bancorp, Inc., (BULLETIN BOARD: NIDB) , the parent company of First Federal Savings Bank, today announced earnings for the year ended December 31, 2009 of $1.9 million ($1.53 per diluted common share) compared to net income of $242,000 ($0.19 per diluted common share) for the year ended December 31, 2008. The full year 2009 earnings equates to an annualized return on average assets (ROA) of 0.75% and a return on average equity (ROE) of 8.32% as compared to an ROA of 0.10% and an ROE of 1.09% for the full year 2008.
Commenting on the financial results, First Federal Savings Bank President Michael S. Zahn stated, "We are very pleased with the company's performance in 2009. In a difficult economic environment and without assistance from the government, First Federal Savings Bank was able to increase earnings, add to capital and aggressively fund our allowance for loan losses while continuing to reward our shareholders with a strong dividend."
Net interest income increased sharply by $1.5 million or 22.1% to $8.2 million for the year ended December 31, 2009 when compared to $6.7 million for the year ended December 31, 2008. The Company's net interest margin increased 62 basis points to 3.45% for the twelve months ended December 31, 2009 versus 2.83% for the twelve months ended December 31, 2008.
The Company made a $1.4 million provision for loan loss for the year ended December 31, 2009 compared to a $430,000 provision for loan loss for the year ended December 31, 2008. 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 $282,000 for the year ended December 31, 2009 compared to net charge-offs of $1.4 million for the year ended December 31, 2008.
Noninterest income increased significantly by $2.1 million to $2.3 million for the year ended December 31, 2009 when compared to $246,000 for the year ended December 31, 2008. This sharp increase is primarily due to $1.7 million in OTTI write-downs in the security portfolio from the prior year. In addition, the bank recorded an increase of $619,000 between yearly periods in net gains on the sale of loans due to a record year of origination and sales of both fixed rate residential mortgages to FHLMC and 7-A small business loans through the SBA. These increases helped to offset increased net losses on the sale of securities and increased net losses on the sale of repossessed assets.
Non-interest expenses increased to $6.3 million for the year ended December 31, 2009 compared to $6.1 million for the year ended December 31, 2008. This increase came from both increases in occupancy and data processing from a new full service branch which opened in Fort Wayne, Indiana September 2009 and a significant increase in FDIC premiums of $282,000 between years due to higher normal premiums and a special assessment from the FDIC to shore up the Deposit Insurance Fund.
Professional fees were also increased for 2009 primarily from one time set up fees for a Nevada Investment Subsidiary and a Real Estate Investment Trust ("REIT") that were set up as wholly-owned subsidiaries of the bank. All of these increases were partially offset by the $360,000 reduction in valuation allowances on repossessed assets that were recorded in 2008.
Net income was reported at $351,000 for the three months ended December 31, 2009, a decrease from net income of $442,000 for the three months ended December 31, 2008. The decline between quarterly periods is primarily due to higher levels of loan loss provisions taken during the three months ended December 31, 2009. Net interest income increased $235,000 between quarterly periods due to an improving net interest margin for the current quarter ended December 31, 2009 compared to the quarter one year ago. Noninterest income increased to $468,000 for the three months ended December 31, 2009 when compared to $389,000 for the three months ended December 31, 2008. Noninterest expenses increased $124,000 to $1.6 million for the quarter ended December 31, 2009 when compared to $1.4 million for the quarter ended December 31, 2008, primarily due to increases in occupancy and other expenses due to a new full service branch that was opened in September 2009 as well as higher FDIC premiums between quarters.
Total assets decreased $7.5 million or 2.9% to $252.7 million at December 31, 2009 compared to December 31, 2008 assets of $260.2 million. The asset decline is primarily due to large noninterest bearing funds on hand at year end 2008 clearing early in first quarter 2009 as well as a sharp reduction in single family portfolio mortgage balances due to most fixed rate originations being sold to FHLMC. Net loans receivable decreased to $191.3 million at December 31, 2009 from $204.2 million at December 31, 2008. Total deposits decreased $1.1 million to $154.6 million at December 31, 2009 from $155.7 million at December 31, 2008. Borrowed funds decreased $6.9 million to $73.1 million at December 31, 2009 compared to $80.0 million at December 31, 2008.
Shareholder's equity at December 31, 2009 was $23.0 million compared to the $21.8 million reported at December 31, 2008. The Company paid out cash dividends of $818,000 to shareholders during the year ended December 31, 2009. The book value of NIDB stock was $18.66 per common share as of December 31, 2009 as compared to a book value of $17.69 per common share as of December 31, 2008. The number of outstanding common shares was 1,230,670. The last reported trade of the stock on December 31, 2009 was $10.25 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 Over the Counter Bulletin Board under the symbol "NIDB". Our web site address is http://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, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) CONSOLIDATED STATEMENT OF FINANCIAL CONDITION December 31, December 31, ------------- ------------ ASSETS 2009 2008 ---- ---- Interest-earning cash and cash equivalents $10,929,272 $6,122,439 Noninterest earning cash and cash equivalents 2,473,235 2,284,062 --------------------------- Total cash and cash equivalents 13,402,507 8,406,501 Securities available for sale 33,025,298 33,022,602 Securities held to maturity (fair value: Dec. 31, 2009 - $550,000 and Dec. 31, 2008 -$550,000) 550,000 550,000 Loans held for sale 53,200 709,400 Loans receivable, net of allowance for loan loss Dec. 31, 2009 $2,868,468 and Dec. 31, 2008 $1,750,605 191,267,218 204,171,179 Accrued interest receivable 1,040,528 1,070,708 Premises and equipment 2,158,406 2,178,416 Investments in limited liability partnerships 317,643 462,279 Cash surrender value of life insurance 6,514,390 6,253,417 Other assets 4,395,150 3,415,020 --------------------------- Total Assets $252,724,340 $260,239,522 =========================== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits 11,065,663 19,873,896 Interest bearing deposits 143,563,858 135,824,869 Borrowed Funds 73,064,228 79,982,575 Accrued interest payable and other liabilities 2,065,832 2,782,849 --------------------------- Total Liabilities 229,759,581 238,464,189 --------------------------- Retained earnings - substantially restricted 22,964,759 21,775,333 --------------------------- Total Liabilities and Shareholders' Equity $252,724,340 $260,239,522 =========================== CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Twelve Months Ended December 31, December 31, 2009 2008 2009 2008 ---- ---- ---- ---- Total interest income $3,357,035 $3,363,573 $13,803,756 $14,461,940 Total interest expense 1,297,815 1,812,061 5,649,469 7,780,914 ------------------------------------------------------------------------ Net interest income $2,059,220 $1,824,512 $8,154,287 $6,681,026 ------------------------------------------------------------------------ Provision for loan losses 475,000 150,000 1,400,000 430,000 Net interest income after provision for loan losses $1,584,220 $1,674,512 $6,754,287 $6,251,026 Service charges on deposit accounts 188,198 171,409 707,905 702,798 Net loss on securities (150,100) (65,868) (234,235) (84,594) Other than temporary impairment - securities - - - (1,677,916) Net gain on sale of loans 92,274 24,862 754,283 135,252 Net gain (loss) on sale of repossessed assets 3,437 (26,267) (123,219) (41,820) Net gain (loss) on sale of fixed assets (1,645) - 1,703 (1,259) Brokerage fees 87,831 88,813 303,521 392,262 Other income 247,644 195,828 927,315 821,138 ------------------------------------------------------------------------ Total noninterest income $467,639 $388,777 $2,337,273 $245,861 ------------------------------------------------------------------------ Salaries and employee benefits 738,023 759,148 3,052,370 3,074,071 Occupancy 231,545 177,446 861,214 744,258 Data processing 187,345 174,861 753,975 675,922 Deposit insurance premiums 55,000 28,699 381,000 98,653 Professional fees 85,197 59,715 287,353 177,470 Correspondent bank charges 31,412 30,671 122,861 132,536 Valuation allowances - repossessed assets - - - 360,000 Other expense 238,041 211,959 882,669 837,429 ------------------------------------------------------------------------ Total noninterest expenses $1,566,563 $1,442,499 $6,341,442 $6,100,339 ------------------------------------------------------------------------ Income/(Loss) before income tax expense $485,296 $620,790 $2,750,118 $396,548 ------------------------------------------------------------------------ Income tax expense/ (benefit) 134,593 178,484 872,160 154,481 Net Income $350,703 $442,306 $1,877,958 $242,067 ======================================================================== NORTHEAST INDIANA BANCORP, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2009 2008 2009 2008 ---- ---- ---- ---- Basic Earnings per common share 0.29 0.36 1.53 0.19 Dilutive Earnings per share 0.29 0.36 1.53 0.19 Net interest margin 3.47% 3.03% 3.45% 2.83% Return on average assets 0.55% 0.69% 0.75% 0.10% Return on average equity 6.05% 8.31% 8.32% 1.09% Efficiency Ratio 62.00% 65.17% 60.44% 88.08%(2) Average shares outstanding -primary 1,228,770 1,227,220 1,228,239 1,256,102 Average shares outstanding -diluted 1,228,770 1,227,220 1,228,779 1,256,642 ------------------------------------------------------------------------ Allowance for loan losses: Balance at beginning of period $2,422,874 $1,591,204 $1,750,605 $2,712,378 Charge-offs: One-to-four family - 49,400 203,962 82,016 Commercial real estate - - - 1,469,711 Commercial - 8,077 74,193 299,840 Consumer 39,496 23,274 183,525 48,549 ------------------------------------------------- Gross charge-offs 39,496 80,751 461,680 1,900,116 ------------------------------------------------- Recoveries: One-to-four family 800 2,559 2,555 2,559 Commercial real estate - - - 226,858 Commercial - 80,000 136,635 230,694 Consumer 9,290 7,593 40,353 48,232 ------------------------------------------------- Gross recoveries 10,090 90,152 179,543 508,343 ------------------------------------------------- Net charge-offs (recoveries) 29,406 (9,401) 282,137 1,391,773 Additions charged to operations 475,000 150,000 1,400,000 430,000 ------------------------------------------------- Balance at end of period $2,868,468 $1,750,605 $2,868,468 $1,750,605 ================================================== ------------------------------------------------- Net loan charge-offs (recoveries) to average loans (1) 0.01% 0.00% 0.14% 0.70% ------------------------------------------------- Nonperforming assets (000's) At Dec. 31, At Sept. 30, At June 30, At Dec. 31, Loans: 2009 2009 2009 2008 ---- ---- ---- ---- Non-accrual $2,826 $2,251 $2,501 $1,570 Past 90 days or more and still accruing - - - - Troubled debt restructured 3,008 3,000 1,622 - ------------------------------------------------- Total nonperforming loans 5,834 5,251 4,123 1,570 Real estate owned 934 1,556 1,498 1,423 Other repossessed assets 11 7 1 8 ------------------------------------------------- Total nonperforming assets $6,779 $6,814 $5,622 $3,001 ================================================== Nonperforming assets to total assets 2.68% 2.75% 2.28% 1.15% Nonperforming loans to total loans 3.01% 2.63% 2.06% 0.76% Allowance for loan losses to nonperforming loans 49.16% 46.14% 52.41% 111.53% Allowance for loan losses to total receivable 1.50% 1.21% 1.09% 0.86% At December 31, 2009 2008 ---- ---- Stockholders' equity as a % of total assets 9.09% 8.37% Book value per share $18.66 $17.69 Common shares outstanding- EOP 1,230,670 1,230,670 (1) Ratios for the three-month periods are annualized. (2) Core Efficiency ratio for FY 2008 was 70.89% without OTTI
Northeast Indiana Bancorp, Inc.
CONTACT: Randy J. Sizemore, Sr. Vice President, CFO, +1-260-358-4680
Web Site: http://www.firstfedindiana.com/
