HUNTINGTON, Ind., Jan. 20, 2023 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income for the full year of 2022 was $6.6 million, or $5.46 per diluted common share, compared to net income of $7.3 million, or $6.08 per diluted common share for the full year of 2021. The annual earnings of 2022 equate to a return on average assets (ROA) ratio of 1.54% and a return on average equity (ROE) ratio of 14.90% compared to ROA of 1.77% and ROE of 15.31% for the full year of 2021.
Net income for the fourth quarter ended December 31, 2022 was $1.6 million, or $1.29 per diluted common share, compared to net income of $1.5 million, or $1.28 per diluted common share for the fourth quarter ended December 31, 2021. The current quarter earnings equate to an annualized ROA of 1.42% and an annualized ROE of 14.84% compared to an annualized ROA of 1.44% and an annualized ROE of 12.54% for the fourth quarter ended December 31, 2021.
The declines in net income are primarily related to a reduction in gain on sale of mortgage loans of $1.4 million in 2022 compared to the same period in 2021. Mortgage production declined during 2022 compared to 2021 as interest rates increased quickly due to actions taken by the Federal Reserve to mitigate inflation. Partially offsetting this decline was an increase in net interest income of $1.1 million in 2022 compared to the same period in 2021.
Total Assets increased $27.9 million to $445.5 million at December 31, 2022 compared to $417.7 million at December 31, 2021. This increase was primarily due to net loans increasing $46.5 million, or 17.0% in 2022, to $320.8 million as of December 31, 2022 compared to $274.3 million as of December 31, 2021. This increase was partially reduced by a $11.8 million reduction in the market value of the investment portfolio due to the volatility of interest rates during 2022. Total deposits increased $24.9 million, or 7.3% in 2022, to $366.8 million at December 31, 2022 compared to $341.9 million at December 31, 2021. Stockholder's equity decreased $5.6 million to $43.1 million at December 31, 2022 compared to $48.7 million at December 31, 2021. This decrease was a result of a decline in accumulated other comprehensive income by $9.2 million in 2022 due to unrealized losses in the investment portfolio. The book value of NIDB's stock was $35.80 per common share and tangible common equity ratio was 9.68% as of December 31, 2022.
In the current year, Northeast Indiana Bancorp and First Federal Savings Bank have been recognized for its performance. First Federal Savings Bank was named to American Banker Magazine's Top 200 Community Banks for the 11th consecutive year for 2021. The magazine qualifies banks for this listing if they have less than $2 billion in total assets and are publicly traded. FFSB came in at #62 on this year's list of the top 200 publicly traded community banks. This is a 16-spot improvement from #78 in 2020. The magazine ranked the institutions based on the profitability metric, Return on Average Equity, over a 3-year period. Only 12 banks from the state of Indiana made this elite list and First Federal Savings Bank ranked 4th in the State.
In addition, Northeast Indiana Bancorp, Inc., the holding company for First Federal Savings Bank, maintained its position on the Dividend Champions List. To achieve Champion status, a company must increase its dividend payments to its shareholders for 25 consecutive years. Northeast Indiana Bancorp is one of 141 companies in the United States to achieve this status and one of four companies from Indiana. With the latest dividend increase in the fourth quarter of 2022, Northeast Indiana Bancorp has increased dividends 28 years in a row.
Michael S. Zahn, President and CEO, commented, "We are proud of our performance in 2022 and the recognitions we have received. Our employees make a difference every day for the benefit of our customers and our communities. Our goal is to continue to enhance shareholder value and benefit the communities we serve."
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 | |||||||
December 31, | December 31, | ||||||
Balance Sheet (Unaudited) | 2022 | 2021 | |||||
(Audited) | |||||||
Assets | |||||||
Non-interest earning cash and cash equivalents | $ 3,141,705 | $ 3,595,989 | |||||
Interest-earning cash and cash equivalents | 747,920 | 12,185,155 | |||||
Total cash and cash equivalents | 3,889,625 | 15,781,144 | |||||
Interest-earning time deposits | 1,230,000 | 2,210,000 | |||||
Securities available for sale | 78,273,337 | 86,644,434 | |||||
Securities held to maturity | 12,062,446 | 11,916,667 | |||||
Loans held for sale | 189,600 | 538,635 | |||||
Loans, gross | 324,752,497 | 278,265,486 | |||||
Allowance for loan losses | (3,996,619) | (3,998,392) | |||||
Loans, net | 320,755,878 | 274,267,094 | |||||
Accrued interest receivable | 1,923,986 | 1,489,036 | |||||
Premises and equipment | 7,254,951 | 6,937,418 | |||||
FHLB Stock | 2,101,600 | 2,426,500 | |||||
Investment in limited partnerships | 1,228,334 | 1,528,334 | |||||
Cash surrender value of life insurance | 11,629,618 | 11,331,941 | |||||
Real estate owned and other repossessed assets | - | - | |||||
Other assets | 4,988,219 | 2,585,660 | |||||
Total Assets | $ 445,527,594 | $ 417,656,863 | |||||
Liabilities and Stockholders' Equity | |||||||
Non-interest bearing deposits | $ 53,232,315 | $ 56,435,410 | |||||
Interest bearing deposits | 313,584,014 | 285,513,161 | |||||
Borrowed funds | 32,000,000 | 23,001,166 | |||||
Accrued interest payable and other liabilities | 3,584,163 | 4,013,574 | |||||
Total Liabilities | 402,400,492 | 368,963,311 | |||||
Stockholders' equity | 43,127,102 | 48,693,552 | |||||
Total Liabilities and Stockholders' Equity | $ 445,527,594 | $ 417,656,863 | |||||
Three months ended | Twelve months ended | ||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||
Income Statement (Unaudited) | 2022 | 2022 | 2021 | 2022 | 2021 | ||
Net interest income | |||||||
Total interest income | $ 5,071,415 | $ 4,456,152 | $ 4,104,650 | $ 17,551,740 | $ 16,353,194 | ||
Total interest expense | 1,120,123 | 509,035 | 724,329 | 2,244,786 | 2,107,592 | ||
Net interest income | 3,951,292 | 3,947,117 | 3,380,321 | 15,306,954 | 14,245,602 | ||
Provision for loan losses | - | - | - | - | 120,000 | ||
Net interest income after provision for loan losses | 3,951,292 | 3,947,117 | 3,380,321 | 15,306,954 | 14,125,602 | ||
Non-interest income | |||||||
Service charges on deposit accounts | 198,715 | 201,818 | 184,310 | 741,330 | 673,080 | ||
Interchange fees | 193,610 | 201,646 | 195,678 | 784,129 | 773,910 | ||
Loan servicing fees | 62,712 | 98,371 | 261,408 | 354,009 | 358,410 | ||
Net gain on sale of loans | 66,083 | 114,804 | 407,182 | 613,364 | 1,972,217 | ||
Net loss on sale of repossessed assets | - | - | (5,000) | - | (7,954) | ||
Brokerage fees | 41,034 | 51,158 | 59,556 | 203,357 | 251,429 | ||
Increase in cash surrender value of life insurance | 74,955 | 74,604 | 66,604 | 297,677 | 260,498 | ||
Other income | 102,248 | 80,456 | 105,232 | 350,771 | 390,525 | ||
Total non-interest income | 739,357 | 822,857 | 1,274,970 | 3,344,637 | 4,672,115 | ||
Non-interest expense | |||||||
Salaries and employee benefits | 1,513,293 | 1,510,552 | 1,683,090 | 5,768,201 | 5,412,488 | ||
Occupancy | 383,944 | 372,801 | 285,046 | 1,368,039 | 1,073,356 | ||
Data processing | 371,655 | 371,686 | 322,827 | 1,461,156 | 1,342,766 | ||
Deposit insurance premiums | 28,500 | 28,500 | 25,500 | 116,000 | 101,000 | ||
Professional fees | 138,903 | 117,130 | 95,581 | 479,529 | 354,263 | ||
Advertising and marketing fees | 89,021 | 83,237 | 64,776 | 268,029 | 224,336 | ||
Correspondent bank charges | 32,864 | 32,669 | 22,129 | 122,585 | 102,369 | ||
Other expense | 281,403 | 307,363 | 313,220 | 1,199,405 | 1,246,011 | ||
Total non-interest expense | 2,839,583 | 2,823,938 | 2,812,169 | 10,782,944 | 9,856,589 | ||
Income before income taxes | 1,851,066 | 1,946,036 | 1,843,122 | 7,868,647 | 8,941,128 | ||
Income tax expense | 298,062 | 323,085 | 306,031 | 1,316,051 | 1,644,000 | ||
Net income | $ 1,553,004 | $ 1,622,951 | $ 1,537,091 | $ 6,552,596 | $ 7,297,128 | ||
Three months ended | Twelve months ended | ||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||
Selected Financial Ratios and Other Financial Data (Unaudited) | 2022 | 2022 | 2021 | 2022 | 2021 | ||
Average shares outstanding - basic | 1,201,442 | 1,199,885 | 1,198,285 | 1,200,051 | 1,198,314 | ||
Average shares outstanding - diluted | 1,201,491 | 1,199,957 | 1,198,410 | 1,200,204 | 1,199,630 | ||
Basic earnings per share | $ 1.29 | $ 1.35 | $ 1.28 | $ 5.46 | $ 6.09 | ||
Diluted earnings per share | $ 1.29 | $ 1.35 | $ 1.28 | $ 5.46 | $ 6.08 | ||
Net interest margin | 3.73 % | 3.88 % | 3.36 % | 3.76 % | 3.67 % | ||
Return on average assets | 1.42 % | 1.53 % | 1.44 % | 1.54 % | 1.77 % | ||
Return on average equity | 14.84 % | 15.09 % | 12.54 % | 14.90 % | 15.31 % | ||
Efficiency ratio | 60.54 % | 59.20 % | 60.41 % | 57.81 % | 52.10 % | ||
Allowance for loan losses: | |||||||
Balance, beginning of period | $ 4,024,366 | $ 3,982,194 | $ 4,013,967 | $ 3,998,392 | $ 3,851,897 | ||
Charge-offs: | |||||||
One-to-four family | - | - | - | - | 15,194 | ||
Commercial real estate | - | - | - | - | - | ||
Land/land development | - | - | - | - | - | ||
Commercial | - | - | - | - | - | ||
Consumer | 60,866 | 21,604 | 38,699 | 139,976 | 113,891 | ||
Gross charge-offs | 60,866 | 21,604 | 38,699 | 139,976 | 129,085 | ||
Recoveries: | |||||||
One-to-four family | 13,099 | 661 | 935 | 15,689 | 11,315 | ||
Commercial real estate | 40 | 108 | 111 | 478 | 19,393 | ||
Land/land development | - | - | - | - | - | ||
Commercial | 185 | 40,000 | 2,550 | 49,910 | 3,540 | ||
Consumer | 19,795 | 23,007 | 19,528 | 72,126 | 121,332 | ||
Gross recoveries | 33,119 | 63,776 | 23,124 | 138,203 | 155,580 | ||
Net charge-offs (recoveries) | 27,747 | (42,172) | 15,575 | 1,773 | (26,495) | ||
Provision for loan losses | - | - | - | - | 120,000 | ||
Balance, end of period | $ 3,996,619 | $ 4,024,366 | $ 3,998,392 | $ 3,996,619 | $ 3,998,392 | ||
Net loan charge-offs (recoveries) to average loans | 0.03 % | -0.06 % | 0.02 % | 0.00 % | -0.01 % | ||
As of | |||||||
December 31, | September 30, | December 31, | |||||
Non-performing assets | 2022 | 2022 | 2021 | ||||
Loans: | |||||||
Non-accrual | $ 2,463,911 | $ 2,683,491 | $ 2,859,668 | ||||
Past 90 days or more and still accruing | - | - | - | ||||
Troubled debt restructured | 525,383 | 525,383 | 364,851 | ||||
Total non-performing loans | 2,989,294 | 3,208,874 | 3,224,519 | ||||
Real estate owned | - | - | - | ||||
Other repossessed assets | - | - | - | ||||
Total non-performing assets | $ 2,989,294 | $ 3,208,874 | $ 3,224,519 | ||||
Non-performing assets to total assets | 0.67 % | 0.75 % | 0.77 % | ||||
Non-performing loans to gross loans | 0.92 % | 1.04 % | 1.16 % | ||||
Allowance for loan losses to non-performing loans | 133.70 % | 125.41 % | 124.00 % | ||||
Allowance for loan losses to gross loans | 1.23 % | 1.30 % | 1.44 % | ||||
Other financial ratios | |||||||
Tangible common equity | 9.68 % | 9.78 % | 11.66 % | ||||
Book value per share | $ 35.80 | $ 34.85 | $ 40.40 | ||||
Common shares outstanding | 1,204,835 | 1,205,135 | 1,205,435 | ||||
(1) Ratios for three periods are annualized | |||||||
SOURCE Northeast Indiana Bancorp, Inc.
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