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Press Release: Northeast Indiana Bancorp, Inc. Announces Record Annual Earnings And Quarterly Earnings

· 02/05/2021 09:58
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

Northeast Indiana Bancorp, Inc. Announces Record Annual Earnings And Quarterly Earnings

PR Newswire

HUNTINGTON, Ind., Feb. 5, 2021

HUNTINGTON, Ind., Feb. 5, 2021 /PRNewswire/ -- Northeast Indiana Bancorp, Inc., (OTCQB: 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 6(th) 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.

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February 05, 2021 09:58 ET (14:58 GMT)