HUNTINGTON, Ind., July 13 /PRNewswire-FirstCall/ -- Northeast Indiana Bancorp, Inc. (BULLETIN BOARD: NIDB) , the parent company of First Federal Savings Bank, today announced net income of $491,000 ($0.40 per diluted common share) for the Company's second quarter ended June 30, 2010 compared to net income of $476,000 ($0.39 per diluted common share) for the second quarter ended June 30, 2009. The current three months earnings equates to an annualized return on average assets (ROA) of 0.76% and a return on average equity (ROE) of 8.38% compared to an annualized ROA of 0.77% and an ROE of 8.61% for the months ended June 30, 2009.
Net interest income increased by $138,000 or 6.9% to $2.1 million for the quarter ended June 30, 2010 when compared to $2.0 million for the quarter ended June 30, 2009. The Company's net interest margin increased by twelve basis points to 3.55% for the current quarter compared to 3.43% in the year earlier quarter. Sequentially, the current quarter's 3.55% net interest margin was also a seven basis point improvement over the quarter ended March 31, 2010 net interest margin of 3.48%.
The Company made a $500,000 provision for loan loss during the quarter ended June 30, 2010 compared to a $300,000 provision for loan loss for the quarter ended June 30, 2009. Management continues to feel it is prudent to maintain or increase the allowance for loan losses by setting aside provisions for loan losses at higher levels during these weak economic conditions. The bank recorded net charge-offs of $452,000 for the quarter ended June 30, 2010 compared to net charge-offs of $25,000 for the quarter ended June 30, 2009.
Noninterest income increased by $73,000 or 11.6% to $701,000 during the quarter ended June 30, 2010 when compared to $628,000 in the same quarterly period a year ago. This was primarily due to an increase in brokerage fees from improving asset values in wealth management as well as a reduction in net losses on sale of securities.
Noninterest expense increased by $34,000 to $1.7 million for the current quarter compared with $1.6 million for the quarter ended June 30, 2009. Increases in salaries/benefits and occupancy were due to our new Fort Wayne branch office that opened September 2009. Legal expenses were higher due to increased collection efforts during the current period. These increases were largely offset by a sharp reduction in FDIC premiums by $104,000. The quarter ended June 30, 2009 contained an FDIC Special Assessment levied on all FDIC-insured financial institutions of $115,000. The Company's efficiency ratio improved to 58.5% for the current three month period compared to 61.9% in the prior year three month period.
Net income for the six months ended June 30, 2010 decreased to $944,000 ($0.76 per diluted common share) compared to net income of $1.0 million ($0.82 per diluted common share) for the six months ended June 30, 2009. The decrease in net income between six month periods is primarily due to an increase in loan loss provisions of $275,000 between six month periods, as well as a sharp reduction of $184,000 in net gain on sale of loans due to significantly reduced mortgage refinance volumes.
These items were partially offset by increased net interest income of $165,000, reduced FDIC premiums of $87,000 and a lower effective tax rate for the current six month period due to the implementation of a Nevada Investment Subsidiary/REIT during the fourth quarter of 2009.
Total assets increased $5.5 million to $258.2 million at June 30, 2010 compared to December 31, 2009 assets of $252.7 million. Net loans decreased $1.2 million to $190.0 million at June 30, 2010 compared to $191.2 million at December 31, 2009. Total deposits increased sharply by $17.3 million to $171.9 million at June 30, 2010 from $154.6 million at December 31, 2009. The significant increase in total deposits came in non-interest bearing DDA, NOW, MMDA and Savings balances through First Federal's full service branches. These newly acquired lower-costing deposits were utilized to pay off maturing brokered deposits and wholesale borrowed funds. Borrowed funds declined $13.2 million or 18.1% to $59.9 million June 30, 2010 compared to $73.1 million at December 31, 2009.
Shareholder's equity increased to $23.7 million at June 30, 2010 compared to $23.0 million at December 31, 2009. The book value of NIDB's stock was $19.11 per common share as of June 30, 2010. The number of outstanding common shares was 1,239,946 as of the same date. The last reported trade of the stock on July 9, 2010 was $10.89 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 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) ----------- CONSOLIDATED STATEMENT OF FINANCIAL CONDITION ASSETS June 30, December 31, -------- ------------ 2010 2009 ---- ---- Interest-earning cash and cash equivalents $10,070,222 $10,929,272 Noninterest earning cash and cash equivalents 3,067,599 2,473,235 --------- --------- Total cash and cash equivalents 13,137,821 13,402,507 Securities available for sale 39,676,977 33,025,298 Securities held to maturity 400,000 550,000 Loans held for sale 530,000 53,200 Loans receivable, net of allowance for loan loss June 30, 2010 $2,838,360 and December 31, 2009 $2,868,468 190,036,234 191,267,218 Accrued interest receivable 1,054,149 1,040,528 Premises and equipment 2,133,987 2,158,406 Investments in limited liability partnerships 272,595 317,643 Cash surrender value of life insurance 6,641,027 6,514,390 Other assets 4,311,537 4,395,150 Total Assets $258,194,327 $252,724,340 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits 13,250,043 11,065,663 Interest bearing deposits 158,729,029 143,563,858 Borrowed Funds 59,906,344 73,064,228 Accrued interest payable and other liabilities 2,615,284 2,065,832 --------- --------- Total Liabilities 234,500,700 229,759,581 ----------- ----------- Retained earnings - substantially restricted 23,693,627 22,964.759 ---------- ---------- Total Liabilities and Shareholder's Equity $258,194,327 $252,724,340 ============ ============ CONSOLIDATED STATEMENTS OF INCOME Three Months Ended June 30, 2010 2009 ---- ---- Total interest income $3,235,620 $3,422,105 Total interest expense 1,100,060 1,424,302 -------------- --------- --------- Net interest income $2,135,560 $1,997,803 ------------------- ---------- ---------- Provision for loan losses 500,000 300,000 Net interest income after provision for loan losses $1,635,560 $1,697,803 Service charges on deposit accounts 177,870 177,420 Net loss on sale of securities (5,646) (45,198) Net gain on sale of loans 214,723 205,577 Net loss on sale of repossessed assets (37,575) (10,684) Brokerage fees 106,870 61,791 Increase in cash surrender value of life insurance 63,319 61,626 Other income 181,083 177,439 ------------ Total noninterest income $700,644 $627,971 ----------------- -------- -------- Salaries and employee benefits 865,240 758,304 Occupancy 224,035 192,149 Data processing 187,372 193,689 Deposit insurance premiums 78,000 182,000 Professional fees 81,172 50,083 Correspondent bank charges 31,653 31,630 Other expense 191,284 216,607 ------------- ------- ------- Total noninterest expenses $1,658,756 $1,624,462 ----------------- Income before income tax expenses $677,448 $701,312 -------------------- -------- -------- Income tax expense 186,668 224,843 Net Income $490,780 $476,469 ========== ======== ======== Six Months Ended June 30, 2010 2009 ---- ---- Total interest income $6,443,281 $6,983,887 Total interest expense 2,276,889 2,982,482 -------------- --------- --------- Net interest income $4,166,392 $4,001,405 ------------------- ---------- ---------- Provision for loan losses 850,000 575,000 Net interest income after provision for loan losses $3,316,392 $3,426,405 Service charges on deposit accounts 343,316 331,190 Net loss on sale of securities (39,847) (46,790) Net gain on sale of loans 245,568 429,235 Net loss on sale of repossessed assets (53,342) (87,597) Brokerage fees 217,745 138,411 Increase in cash surrender value of life insurance 126,638 127,873 Other income 349,068 308,212 ------------ ------- Total noninterest income $1,189,146 $1,200,534 ----------------- ---------- ---------- Salaries and employee benefits 1,705,032 1,496,598 Occupancy 428,388 395,096 Data processing 377,719 384,714 Deposit insurance premiums 149,400 236,000 Professional fees 143,170 112,880 Correspondent bank charges 60,547 62,720 Other expense 385,569 440,245 ------------- ------- ------- Total noninterest expenses $3,249,825 $3,128,253 ----------------- Income before income tax expenses $1,255,713 $1,498,686 -------------------- ---------- ---------- Income tax expense 312,105 489,519 Net Income $943,608 $1,009,167 ========== ======== ========== NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2010 2009 2010 2009 ---- ---- ---- ---- Basic Earnings per common share 0.40 0.39 0.76 0.82 Dilutive Earnings per share 0.40 0.39 0.76 0.82 Net interest margin 3.55% 3.43% 3.52% 3.40% Return on average assets 0.76% 0.77% 0.74% 0.81% Return on average equity 8.38% 8.61% 9.64% 9.16% Efficiency ratio 58.49% 61.87% 60.69% 60.14% Average shares outstanding -primary 1,238,246 1,227,920 1,236,933 1,227,816 Average shares outstanding -diluted 1,238,246 1,227,920 1,236,966 1,227,933 ------------ --------- --------- --------- --------- Allowance for loan losses: Balance at beginning of period $2,790,401 $1,886,191 $2,868,468 $1,750,605 Charge- offs: One-to- four family 7,292 139,308 99,359 194,266 Commercial real estate 128,082 - 128,082 - Commercial 328,269 14,358 675,061 14,358 Consumer 8,983 22,039 9,353 117,538 ----- ------ ----- ------- Gross charge- offs 472,627 175,705 911,855 326,162 Recoveries: One-to- four family 975 730 1,950 1,130 Commercial real estate - - - - Commercial - 136,635 - 136,635 Consumer 19,611 13,534 29,797 24,207 ------ ------ ------ ------ Gross recoveries 20,586 150,929 31,747 161,972 ------ ------- ------ ------- Net charge- offs 452,041 24,776 880,108 164,190 Additions charged to operations 500,000 300,000 850,000 575,000 ------- ------- ------- ------- Balance at end of period $2,838,360 $2,161,415 $2,838,360 $2,161,415 ========== ========== ========== ========== Net loan charge- offs to average loans (1) 0.93% 0.05% 0.90% 0.16% --------- ---- ---- ---- ---- Nonperforming assets At December (000's) At June 30, At March 31, 31, Loans: 2010 2010 2009 ---- ---- ---- Non- accrual $4,552 $5,474 $2,826 Past 90 days or more and still accruing - - - Troubled debt restructured 621 621 3,008 --- --- ----- Total nonperforming loans 5,173 6,095 5,834 Real estate owned 1,058 884 934 Other repossessed assets 6 3 11 --- --- --- Total nonperforming assets $6,237 $6,982 $6,779 ====== ====== ====== Nonperforming assets to total assets 2.42% 2.77% 2.68% Nonperforming loans to total loans 2.68% 3.12% 3.01% Allowance for loan losses to nonperforming loans 54.86% 45.78% 49.16% Allowance for loan losses to net loans receivable 1.49% 1.45% 1.50% At June 30, 2010 2009 ---- ---- Stockholders' equity as a % of total assets 9.18% 9.01% Book value per share $19.11 $18.04 Common shares outstanding- EOP 1,239,946 1,230,670 (1) Ratios for the three-month periods are annualized.
Northeast Indiana Bancorp, Inc.
CONTACT: Randy J. Sizemore, Sr. Vice President, CFO, +1-260-358-4680
Web Site: http://www.firstfedhuntington.com/
