HUNTINGTON, Ind., Feb. 5, 2021 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., NIDB, the parent company of First Federal Savings Bank, today announced earnings increased $914,000 or 19.5% to $5.6 million ($4.65 per diluted common share) for the full year 2020 when compared to full year 2019 earnings of $4.7 million ($3.91 per diluted common share). 2020 annual earnings represent the highest earnings level ever recorded for the Company. The full year 2020 earnings equates to a return on average assets of 1.44% and a return on average equity of 12.63% compared to an ROA of 1.33% and an ROE of 11.76% for the full year 2019.
Total assets increased $37.4 million or 10.6% to $391.3 million at December 31, 2020 compared to December 31, 2019 assets of $353.9 million. Total net loans increased $10.7 million or 4.2% to $264.2 million at December 31, 2020 from $253.5 million at December 31, 2019. Total deposits increased $44.7 million or 17.7% to $297.0 million at December 31, 2020 from $252.3 million at December 31, 2019. Total borrowings decreased $11.4 million or 19.9% to $45.8 million at December 31, 2020 compared to December 31, 2019 borrowings of $57.2 million.
The Company paid out cash dividends of $2.5 million to shareholders during the year ended December 31, 2020 including roughly $1.2 million from a Special Cash Dividend ($1.00 per common share) that was paid to shareholders in December 2020 for the 6th year in a row of Special Cash Dividends. The book value of NIDB stock was $37.73 per common share as of December 31, 2020. The Company's stock closed at $40.00 per common share on December 31, 2020.
Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, "2020 was a challenging year for everyone. I'm pleased with how our team stepped up to serve our customers and our communities." Zahn continues, "FFSB was able to achieve record earnings while helping commercial customers secure much needed relief and homeowners obtain low interest rate mortgages."
First Federal Savings Bank was a source of strength to small business clients and non-profits in Northeast Indiana during 2020. The Bank participated in the SBA's Paycheck Protection Program ("PPP") and helped over 400 clients receive roughly $40.0 million in PPP funding. We have also begun helping clients navigate the second round of the PPP program for first and second draw requests.
First Federal Savings Bank had record 1-4 Family mortgage production of $92.5 million for the full year 2020. This was an increase of $56.8 million or 159.1% compared to 1-4 Family mortgage production of $35.7 million for the full year 2019. These efforts help our retail clients through lower monthly payments and lower interest over the life of their mortgage loans. We anticipate mortgage production to remain at elevated levels at least over the next three months if not longer.
The Company also announced quarterly earnings for the three months ended December 31, 2020 increased by $331,000 or 28.9% to $1.5 million ($1.23 per diluted common share) when compared to earnings for the three months ended December 31, 2019 of $1.1 million ($0.96 per diluted common shares). We also accrued $550,000 in pension expense during the quarter ended December 31, 2020 as we prepare to transition our frozen multi-employer defined benefit pension plan to a qualified successor plan during the first quarter of 2021. Earnings would have been roughly $410,000 higher, net of taxes, without this non-recurring entry. The current quarter's earnings equates to an ROA of 1.49% and an ROE of 12.90% compared to an ROA of 1.28% and an ROE of 11.05% for the prior year quarter ended December 31, 2019.
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 five full-service Indiana offices in Huntington (2), Warsaw 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.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | ||||||||||||||||
ASSETS | December 31, 2020 | December 31, 2019 | ||||||||||||||
Interest-earning cash and cash equivalents | $ | 12,397,471 | $ | 8,352,340 | ||||||||||||
Noninterest earning cash and cash equivalents | 2,311,822 | 2,863,471 | ||||||||||||||
Total cash and cash equivalents | 14,709,293 | 11,215,811 | ||||||||||||||
Interest-earning time deposits | 3,681,000 | 3,681,000 | ||||||||||||||
Securities available for sale | 78,418,462 | 65,001,858 | ||||||||||||||
Securities held to maturity | 9,442,271 | 1,044,197 | ||||||||||||||
Loans held for sale | 137,000 | 134,000 | ||||||||||||||
Loans receivable, net of allowance for loan loss Dec. 31, 2020 $3,851,897 and Dec. 31, 2019 $3,191,605 | 264,220,486 | 253,461,826 | ||||||||||||||
Accrued interest receivable | 1,516,929 | 1,242,788 | ||||||||||||||
Premises and equipment | 5,282,884 | 4,971,271 | ||||||||||||||
Investments in limited liability partnerships | 1,828,334 | 2,128,334 | ||||||||||||||
Cash surrender value of life insurance | 10,071,443 | 8,839,193 | ||||||||||||||
Other assets | 1,969,048 | 2,203,348 | ||||||||||||||
Total Assets | $ | 391,277,150 | $ | 353,923,626 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
Non-interest bearing deposits | 46,257,438 | 30,011,306 | ||||||||||||||
Interest bearing deposits | 250,700,577 | 222,271,145 | ||||||||||||||
Borrowed Funds | 45,805,419 | 57,237,450 | ||||||||||||||
Accrued interest payable and other liabilities | 2,852,005 | 3,086,817 | ||||||||||||||
Total Liabilities | 345,615,439 | 312,606,718 | ||||||||||||||
Retained earnings – substantially restricted | 45,661,711 | 41,316,908 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 391,277,150 | $ | 353,923,626 | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Total interest income | $ | 4,115,656 | $ | 3,888,547
| $ | 15,449,622 | $ | 15,995,780 | ||||||||
Total interest expense | 619,374 | 1,020,391 | 3,041,269 | 4,335,592 | ||||||||||||
Net interest income | $ | 3,496,282 | $ | 2,868,156 | $ | 12,408,353 | $ | 11,660,188 | ||||||||
Provision for loan losses | 120,000 | 75,000 | 580,000 | 425,000 | ||||||||||||
Net interest income after provision for loan losses | $ | 3,376,282 | $ | 2,793,156 | $ | 11,828,353 | $ | 11,235,188 | ||||||||
Service charges on deposit accounts | 190,312 | 202,459 | 659,683 | 742,279 | ||||||||||||
Interchange fees | 150,561 | 149,117 | 569,959 | 592,966 | ||||||||||||
Net gain (loss) on sale of securities | - | - | - | 91,526 | ||||||||||||
Net gain on sale of loans | 874,069 | 272,788 | 2,715,931 | 920,900 | ||||||||||||
Net gain (loss) on sale of repossessed assets | - | (12,047) | (16,535) | (4,439) | ||||||||||||
Brokerage fees | 47,501 | 51,854 | 189,633 | 216,823 | ||||||||||||
Increase in cash surrender value of life insurance | 62,731 | 56,375 | 232,250 | 225,500 | ||||||||||||
Other income | 90,884 | 99,285 | 276,408 | 634,706 | ||||||||||||
Total noninterest income | $ | 1,416,058 | $ | 819,831 | $ | 4,627,329 | $ | 3,420,261 | ||||||||
Salaries and employee benefits | 1,867,398 | 1,261,897 | 5,591,328 | 5,139,029 | ||||||||||||
Occupancy | 263,635 | 271,594 | 1,033,583 | 1,124,854 | ||||||||||||
Data processing | 312,385 | 243,055 | 1,138,073 | 962,075 | ||||||||||||
Deposit insurance premiums | 21,000 | - | 99,000 | 24,000 | ||||||||||||
Professional fees | 138,055 | 81,073 | 341,229 | 368,327 | ||||||||||||
Advertising and marketing | 63,444 | 67,630 | 212,313 | 256,690 | ||||||||||||
Correspondent bank charges | 18,942 | 36,050 | 109,344 | 145,909 | ||||||||||||
Other expense | 324,403 | 312,622 | 1,171,571 | 1,156,107 | ||||||||||||
Total noninterest expenses | $ | 3,009,262 | $ | 2,273,921 | $ | 9,696,441 | $ | 9,176,991 | ||||||||
Income before income tax expense | $ | 1,783,078 | $ | 1,339,066 | $ | 6,759,241 | $ | 5,478,458 | ||||||||
Income tax expense | 307,137 | 193,761 | 1,159,619 | 792,964 | ||||||||||||
Net Income | $ | 1,475,941 | $ | 1,145,305 | $ | 5,599,622 | $ | 4,685,494 | ||||||||
NORTHEAST INDIANA BANCORP | |||||||||||||||
Three Months Ended |
Twelve Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Basic Earnings per common share | 1.23 | 0.96 | 4.65 | 3.91 | |||||||||||
Dilutive Earnings per share | 1.23 | 0.96 | 4.64 | 3.91 | |||||||||||
Net interest margin | 3.76% | 3.43% | 3.41% | 3.52% | |||||||||||
Return on average assets | 1.49% | 1.28% | 1.44% | 1.33% | |||||||||||
Return on average equity | 12.90% | 11.05% | 12.63% | 11.76% | |||||||||||
Efficiency Ratio | 61.26% | 61.66% | 56.92% | 60.85% | |||||||||||
Average shares outstanding - primary | 1,201,827 | 1,198,827 | 1,204,352 | 1,197,629 | |||||||||||
Average shares outstanding - diluted | 1,201,827 | 1,198,827 | 1,205,602 | 1,198,154 | |||||||||||
Allowance for loan losses: | |||||||||||||||
Balance at beginning of period | $ | 3,781,578 | $ | 3,094,673 | $ | 3,191,605 | $ | 2,856,319 | |||||||
Charge-offs: | |||||||||||||||
One-to-four family | - | - | 17,952 | 41,961 | |||||||||||
Commercial real estate | - | - | 13,865 | 73,705 | |||||||||||
Land/land development | - | - | - | - | |||||||||||
Commercial | 13,865 | 52,725 | - | 77,725 | |||||||||||
Consumer | 53,434 | 55,138 | 137,577 | 208,170 | |||||||||||
Gross charge-offs | 67,299 | 107,863 | 169,394 | 401,561 | |||||||||||
Recoveries: | |||||||||||||||
One-to-four family | 1,411 | 43,406 | 4,242 | 46,066 | |||||||||||
Commercial real estate | - | - | - | 64,040 | |||||||||||
Land/land development | - | - | - | - | |||||||||||
Commercial | 691 | 63,000 | 106,609 | 86,649 | |||||||||||
Consumer | 15,516 | 23,389 | 138,835 | 115,092 | |||||||||||
Gross recoveries | 17,618 | 129,795 | 249,686 | 311,847 | |||||||||||
Net charge-offs / recoveries | 49,681 | (21,932) | (80,292) | 89,714 | |||||||||||
Additions charged to operations | 120,000 | 75,000 | 580,000 | 425,000 | |||||||||||
Balance at end of period | $ | 3,851,897 | $ | 3,191,605 | $ | 3,851,897 | $ | 3,191,605 | |||||||
Net loan charge-offs (recoveries) to average loans (1) | 0.07% | (0.03%) | (0.03%) | 0.04% | |||||||||||
Nonperforming assets (000's) | At December 31, | At September 30, | At June 30, | At December 31, | |||||||||||
Loans: | 2020 | 2020 | 2020 | 2019 | |||||||||||
Non-accrual | $ | 5,034 | $ | 5,501 | $ | 6,511 | $ | 6,173 | |||||||
Past 90 days or more and still accruing | - | - | - | - | |||||||||||
Troubled debt restructured | 374 | 381 | 448 | 468 | |||||||||||
Total nonperforming loans | 5,408 | 5,882 | 6,959 | 6,641 | |||||||||||
Real estate owned | 5 | 5 | 5 | 262 | |||||||||||
Other repossessed assets | - | - | - | - | |||||||||||
Total nonperforming assets | $ | 5,413 | $ | 5,887 | $ | 6,964 | $ | 6,903 | |||||||
Nonperforming assets to total assets | 1.38% | 1.50% | 1.42% | 1.95% | |||||||||||
Nonperforming loans to total loans | 2.02% | 2.13% | 2.48% | 2.59% | |||||||||||
Allowance for loan losses to nonperforming loans | 71.23% | 64.30% | 52.66% | 48.07% | |||||||||||
Allowance for loan losses to total receivable | 1.46% | 1.39% | 1.32% | 1.26% | |||||||||||
At December 31, | |||||||||||||||
2020 | 2019 | ||||||||||||||
Stockholders' equity as a % of total assets | 11.67% | 11.67% | |||||||||||||
Book value per share | $ | 37.73 | $ | 34.25 | |||||||||||
Common shares outstanding- EOP | 1,210,327 | 1,206,327 | |||||||||||||
(1) Ratios for the three-month periods are annualized. | |||||||||||||||
SOURCE Northeast Indiana Bancorp, Inc.
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