HUNTINGTON, Ind., April 24, 2024 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income of $722,000 ($0.30 per diluted common share) for the first quarter ended March 31, 2024 compared to earnings from the quarter ended March 31, 2023 of $1.17 million ($0.49 per diluted common share). The current three months earnings equate to an annualized return on average assets (ROA) of 0.57% and a return on average equity (ROE) of 6.26% compared to an ROA of 1.04% and an ROE of 10.75% for the prior year quarter ended March 31, 2023.
(PRNewsfoto/Northeast Indiana Bancorp, Inc.)
Total assets increased $10.7 million, or 8.6% on an annualized basis, to $509.4 million at March 31, 2024 compared to total assets of $498.7 million at December 31, 2023. Total loans increased $8.7 million, or 9.4% on an annualized basis, to $379.3 million at March 31, 2024 compared to total loans of $370.7 million at December 31, 2023. Total deposits increased $2.3 million, or 2.3% on an annualized basis, to $403.4 million at March 31, 2024 compared to $401.1 million at December 31, 2023.
Shareholders' equity decreased $131,000 to $46.3 million at March 31, 2024 compared to $46.4 million at December 31, 2023. The decrease in shareholders' equity was a result of the combination of the fair value of the investment portfolio decreasing $471,000 and dividends paid of $413,000 slightly exceeding net income for the first quarter. The book value of NIDB stock decreased $0.10 to $19.05 per common share as of March 31, 2024 compared to $19.15 at December 31, 2023. The number of outstanding common shares was 2,429,698 as of March 31, 2024.
Net interest income decreased $2,000 in the first quarter of 2024 compared to the same period in 2023. Continued margin pressure saw gains in interest income offset by increases in interest expense. An increase in average earning assets of $51.6 million was countered by a 36 basis point decrease in net interest margin to 2.99% for the first quarter of 2024 compared to the first quarter of 2023. The decline in net interest margin was primarily due to an increase of 108 basis points in costs of interest-bearing liabilities of 3.10% in the first quarter of 2024 compared to 2.02% in the first quarter of 2023 matched against an increase of 58 basis points in yield on interest earning assets to 5.55% in the first quarter of 2024 compared to 4.97% in the first quarter of 2023.
Provision for loan loss expense of $500,000 in the first quarter of 2024 decreased $280,000 as compared to the previous quarter expense of $780,000. The first quarter expense was a result of the CECL accounting standard's impact related to new growth of the loan portfolio in addition to an increase in specific reserves on existing loans.
Non-interest income declined $75,000 in the first quarter of 2024 compared to the same period in 2023. The decrease was primarily the result of a decline of $30,000 in gain on sale of loans due to slower mortgage volume in the first quarter of 2024 compared to the first quarter of 2023 and a decline of $65,000 in brokerage fee income with the bank transitioning its investment advisory business to a third-party during the 4th quarter of 2023. Non-interest expense increased $114,000 in the first quarter of 2024 compared to the first quarter of 2023. In addition to the growth in expenses attributed to a growing balance sheet, the increase in non-interest expense is primarily due to an increase in FDIC deposit insurance premiums of $25,000.
*All share data has been adjusted to reflect Northeast Indiana Bancorp, Inc.'s two-for-one stock split effective July 14, 2023.
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.firstfedindiana.bank.
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
March 31,
December 31,
March 31,
Balance Sheet (Unaudited)
2024
2023
2023
Assets
Interest-earning cash and cash equivalents
$ 3,760,954
$ 4,304,296
$ 2,646,912
Non-interest earning cash and cash equivalents
2,380,391
1,166,180
1,940,693
Total cash and cash equivalents
6,141,345
5,470,476
4,587,606
Interest-earning time deposits
4,520,000
4,320,000
1,230,000
Securities available for sale
75,898,559
76,228,755
78,278,059
Securities held to maturity
12,500,863
12,754,763
12,787,199
Loans held for sale
74,900
-
403,600
Loans, gross
385,129,684
375,992,822
330,160,388
Allowance for loan losses
(5,790,301)
(5,335,305)
(4,421,505)
Loans, net
379,339,383
370,657,517
325,738,883
Accrued interest receivable
2,455,724
2,354,636
1,982,785
Premises and equipment
7,752,161
7,366,169
7,376,693
FHLB Stock
2,835,000
2,227,500
2,101,600
Investment in limited partnerships
853,334
928,334
1,153,334
Cash surrender value of life insurance
12,334,196
11,751,653
11,703,266
Other assets
4,655,401
4,624,206
4,803,252
Total Assets
$ 509,360,866
$ 498,684,009
$ 452,146,276
Liabilities and Stockholders' Equity
Non-interest bearing deposits
$ 50,297,770
$ 54,764,981
$ 54,547,736
Interest bearing deposits
353,098,422
346,307,200
316,197,968
Borrowed funds
56,000,000
47,250,000
34,000,000
Accrued interest payable and other liabilities
3,675,681
3,941,438
3,582,889
Total Liabilities
463,071,873
452,263,619
408,328,593
Stockholders' equity
46,288,993
46,420,390
43,817,683
Total Liabilities and Stockholders' Equity
$ 509,360,866
$ 498,684,009
$ 452,146,276
Three months ended
March 31,
December 31,
March 31,
Income Statement (Unaudited)
2024
2023
2023
Net interest income
Total interest income
$ 6,729,934
$ 6,702,608
$ 5,388,127
Total interest expense
3,105,342
2,952,000
1,761,895
Net interest income
3,624,592
3,750,608
3,626,232
Provision for loan losses
500,000
780,000
90,000
Net interest income after provision for loan losses
3,124,592
2,970,608
3,536,232
Non-interest income
Service charges on deposit accounts
178,670
184,623
188,222
Interchange fees
200,018
195,918
192,338
Loan servicing fees
109,708
108,432
102,573
Net gain on sale of loans
36,024
67,979
65,793
Brokerage fees
1,182
29,086
66,485
Increase in cash surrender value of life insurance
82,543
75,763
73,648
Other income
86,643
73,390
80,671
Total non-interest income
694,788
735,191
769,730
Non-interest expense
Salaries and employee benefits
1,640,271
1,443,480
1,687,245
Occupancy
355,051
340,005
340,935
Data processing
438,832
387,894
394,597
Deposit insurance premiums
74,000
54,000
49,500
Professional fees
104,013
207,204
111,035
Advertising and marketing fees
87,680
129,495
91,717
Correspondent bank charges
39,596
39,288
38,732
Other expense
341,495
335,295
253,251
Total non-interest expense
3,080,938
2,936,661
2,967,012
Income before income taxes
738,442
769,138
1,338,950
Income tax expense
16,252
27,866
168,494
Net income
$ 722,190
$ 741,272
$ 1,170,456
Three months ended
March 31,
December 31,
March 31,
Selected Financial Ratios and Other Financial Data (Unaudited)
2024
2023
2023
Average shares outstanding - basic
2,405,122
2,401,584
2,401,319
Average shares outstanding - diluted
2,405,122
2,401,584
2,401,406
Basic earnings per share
$ 0.30
$ 0.31
$ 0.49
Diluted earnings per share
$ 0.30
$ 0.31
$ 0.49
Net interest margin (1)
2.99 %
3.16 %
3.35 %
Return on average assets (1)
0.57 %
0.60 %
1.04 %
Return on average equity (1)
6.26 %
6.75 %
10.75 %
Efficiency ratio
71.33 %
65.47 %
67.49 %
Allowance for loan losses:
Balance, beginning of period
$ 5,335,305
$ 4,529,631
$ 3,996,619
Charge-offs:
One-to-four family
-
-
-
Commercial real estate
-
-
-
Land/land development
-
-
-
Commercial
-
-
-
Consumer
69,725
68,491
36,130
Gross charge-offs
69,725
68,491
36,130
Recoveries:
One-to-four family
-
10,664
-
Commercial real estate
-
-
-
Land/land development
-
-
-
Commercial
-
200
923
Consumer
24,721
38,301
20,093
Gross recoveries
24,721
49,165
21,016
Net charge-offs (recoveries)
45,004
19,326
15,114
CECL adjustment
-
-
350,000
Provision for loan losses
500,000
825,000
90,000
Balance, end of period
$ 5,790,301
$ 5,335,305
$ 4,421,505
Net loan charge-offs (recoveries) to average loans (1)
0.05 %
0.02 %
0.02 %
As of
March 31,
December 31,
March 31,
Non-performing assets
2024
2023
2023
Loans:
Non-accrual
$ 6,547,940
$ 6,415,623
$ 4,137,597
Past 90 days or more and still accruing
-
-
-
Troubled debt modification
524,970
524,970
525,020
Total non-performing loans
7,072,910
6,940,593
4,662,617
Real estate owned
-
-
-
Other repossessed assets
-
-
-
Total non-performing assets
$ 7,072,910
$ 6,940,593
$ 4,662,617
Non-performing assets to total assets
1.39 %
1.39 %
1.03 %
Non-performing loans to gross loans
1.84 %
1.85 %
1.41 %
Allowance for loan losses to non-performing loans
81.87 %
76.87 %
94.83 %
Allowance for loan losses to gross loans
1.50 %
1.42 %
1.34 %
Other financial ratios
Stockholders' equity as a % of total assets
9.09 %
9.31 %
9.69 %
Book value per share
$ 19.05
$ 19.15
$ 18.01
Common shares outstanding
2,429,698
2,423,698
2,432,670
(1) Ratios for three-month periods are annualized
(2) All share data has been adjusted for the 2:1 stock split on July 14, 2023.
