Subject: ERN
NORTHEAST INDIANA BANCORP, INC. ANNOUNCES FIRST QUARTER 2024 EARNINGS
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.
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. | |||
SOURCE Northeast Indiana Bancorp, Inc.
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