| FOR IMMEDIATE RELEASE APRIL 15, 2005 FOR ADDITIONAL INFORMATION CONTACT: RANDY J. SIZEMORE SR VICE PRESIDENT, CFO (260) 358-4680 |
HUNTINGTON, INDIANA, --Northeast Indiana Bancorp, Inc., (NEIB), the parent company of First Federal Savings Bank, has announced net income of $399,000 ($0.28 per diluted common share) for the first quarter ended March 31, 2005 compared to $403,000 ($0.27 per diluted common share) for the first quarter ended March 31, 2004. Even with net income relatively unchanged, diluted earnings per common share increased 3.7% to $0.28 for the current quarter due to the Company’s activities under a share repurchase program between periods. The current three months earnings equates to an annualized return on average assets (ROA) of 0.70% and a return on average equity (ROE) of 6.10% as compared to an ROA of 0.73% and an ROE of 5.92% for the three months ended March 31, 2004.
Net interest income was unchanged at $1.6 million for the quarters ended March 31, 2005 and March 31, 2004. The Company’s net interest margin was little changed at 2.96% for the current quarter compared to 3.01% for the year earlier quarter.
The Company made a $20,000 provision for loan loss during the quarter ended March 31, 2005 compared to no provision for loan loss for the quarter ended March 31, 2004.
Noninterest income significantly increased by $141,000 or 45.3% to $452,000 for the current period compared to $311,000 during the year earlier period. This increase was primarily due to increases of $89,000 in brokerage fees and $62,000 in service charges on deposit accounts offset by a decrease of $19,000 in gains on the sale of securities. Brokerage fees increased due to the brokerage acquisition that took place late in the quarter ended June 30, 2004 and was related to significant product volumes in that area for the second quarter in a row. Service charges on deposit accounts increased due to the implementation of a new retail overdraft program during the quarter ended June 30, 2004.
Noninterest expense increased $139,000 to $1.5 million for the quarter ended March 31, 2005 compared to $1.4 million for the quarter ended March 31, 2004. This increase came primarily in salaries and employee benefits due to more wages for new personnel in the brokerage subsidiary, increased funding on a defined benefit pension plan, increases in premium payments under a health insurance program for employees, and less deferred loan origination fees due to lower mortgage volumes.
Net loans receivable was unchanged at $174.8 million at both March 31, 2005 and December 31, 2004. Deposits increased significantly by $8.8 million or 7.1% to $132.8 million during the same time frame. Decreases of $2.8 million in time deposits and MMDA accounts were more than offset by strong growth of $11.6 million in NOW, savings and noninterest bearing accounts during the current three month period. Most of the growth can be attributed to a new retail premium checking account promotion launched at the start of the current year. Borrowed funds declined to $72.0 million at March 31, 2005 from $77.1 million at December 31, 2004 both from decreases in repurchase agreement accounts and from decreases in FHLB borrowings.
Shareholders’ equity was unchanged at $26.0 million at both March 31, 2005 and December 31, 2004. The Company repurchased 18,500 shares on the open market at an average cost of $21.43, for a total cost of $396,525 during the quarter ended March 31, 2005. In the opinion of management, these repurchases help leverage Northeast Indiana Bancorp’s remaining equity and tend to improve return on shareholder’s equity. The Company has approximately 37,000 shares that may be repurchased under the current stock repurchase program, which was previously announced.
The book value of NEIB’s stock was $18.34 per common share as of March 31, 2005. The number of outstanding common shares was 1,417,279. The last reported trade of the stock on April 13, 2005 was $20.85 per common share.
Northeast Indiana Bancorp, Inc. is headquartered at 648 North Jefferson Street, Huntington, Indiana. The company offers a full array of banking, trust, and financial brokerage services to its customers through three full service branches located in Huntington, Indiana. The Company is traded on The NASDAQ Stock Market under the symbol “NEIB”.
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 (Unaudited) CONSOLIDATED STATEMENT OF FINANCIAL CONDITION |
| ASSETS | March 31, 2005 | December 31, 2004 | ||||||
|---|---|---|---|---|---|---|---|---|
| Interest-earning cash and cash equivalents | $ | 4,536,661 | $ | 1,142,340 | ||||
| Noninterest earning cash and cash equivalents | 1,883,479 | 2,242,859 | ||||||
| Total cash and cash equivalents | 6,420,140 | 3,385,199 | ||||||
| Securities available for sale | 39,687,804 | 38,903,998 | ||||||
| Securities held to maturity estimated market value of $0 and $60,000 at March 31, 2005, and | ||||||||
| December 31, 2004 | — | 60,000 | ||||||
| Loans held for sale | — | — | ||||||
| Loans receivable, net of allowance for loan loss March 31, 2005 $1,362,953 and December 31, 2004 | ||||||||
| $ 1,357,505 | 174,779,325 | 174,800,272 | ||||||
| Accrued interest receivable | 828,791 | 830,837 | ||||||
| Premises and equipment | 2,147,299 | 2,175,981 | ||||||
| Investments in limited liability partnerships | 1,313,112 | 1,370,919 | ||||||
| Cash surrender value of life insurance | 5,409,349 | 5,159,178 | ||||||
| Other assets | 2,025,363 | 1,985,839 | ||||||
| Total Assets | $ | 232,611,183 | $ | 228,672,223 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Deposits | 132,788,309 | 123,950,768 | ||||||
| Borrowed Funds | 72,031,882 | 77,066,576 | ||||||
| Accrued interest payable and other liabilities | 1,794,613 | 1,608,346 | ||||||
| Total Liabilities | 206,614,804 | 202,625,690 | ||||||
| Retained earnings - substantially restricted | 25,996,379 | 26,046,533 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 232,611,183 | $ | 228,672,223 | ||||
CONSOLIDATED STATEMENTS OF INCOME |
| Three Months Ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2005 | 2004 | |||||||
| Total interest income | $ | 3,054,386 | $ | 3,009,497 | ||||
| Total interest expense | 1,463,484 | 1,434,391 | ||||||
| Net interest income | $ | 1,590,902 | $ | 1,575,106 | ||||
| Provision for loan losses | 20,000 | — | ||||||
| Net interest income after provision for loan losses | $ | 1,570,902 | $ | 1,575,106 | ||||
| Service charges on deposit accounts | 146,526 | 84,371 | ||||||
| Net gain on sale of securities | — | 18,971 | ||||||
| Net gain on sale of loans | 24,497 | 28,549 | ||||||
| Net gain (loss) on sale of repossessed assets | 2,716 | 5,690 | ||||||
| Trust and brokerage fees | 104,240 | 14,924 | ||||||
| Other income | 174,257 | 158,976 | ||||||
| Total noninterest income | $ | 452,236 | $ | 311,481 | ||||
| Salaries and employee benefits | 838,265 | 746,306 | ||||||
| Occupancy | 120,070 | 112,255 | ||||||
| Data processing | 171,518 | 164,084 | ||||||
| Deposit insurance premiums | 4,504 | 4,684 | ||||||
| Professional fees | 79,161 | 70,648 | ||||||
| Correspondent bank charges | 62,615 | 53,373 | ||||||
| Other expense | 218,814 | 204,588 | ||||||
| Total noninterest expenses | $ | 1,494,947 | $ | 1,355,938 | ||||
| Income before income tax expenses | $ | 528,191 | $ | 530,649 | ||||
| Income tax expenses | 129,392 | 128,059 | ||||||
| Net Income | $ | 398,799 | $ | 402,590 | ||||
| NORTHEAST INDIANA BANCORP CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
| Three Months Ended March 31, | ||||||||
| 2005 | 2004 | |||||||
| Basic Earnings per common share | 0.29 | 0.28 | ||||||
| Dilutive Earnings per share | 0.28 | 0.27 | ||||||
| Net interest margin | 2.96% | 3.01% | ||||||
| Return on average assets | 0.70% | 0.73% | ||||||
| Return on average equity | 6.10% | 5.92% | ||||||
| Average shares outstanding- primary | 1,396,838 | 1,445,178 | ||||||
| Average shares outstanding- diluted | ||||||||
| 1,434,395 | 1,498,448 | |||||||
| Allowance for loan losses: | ||||||||
| Balance at beginning of period | $ | 1,357,505 | $ | 1,772,109 | ||||
| Charge-offs: | ||||||||
| One-to-four family | 7,029 | — | ||||||
| Commercial real estate | — | — | ||||||
| Commercial | 1,305 | — | ||||||
| Consumer | 59,183 | 112,191 | ||||||
| Gross charge-offs | 67,517 | 112,191 | ||||||
| Recoveries: | ||||||||
| One-to-four family | — | — | ||||||
| Commercial real estate | 7,893 | — | ||||||
| Commercial | 11,552 | — | ||||||
| Consumer | 33,520 | 34,331 | ||||||
| Gross recoveries | 52,965 | 34,331 | ||||||
| Net charge-offs (recoveries) | 14,552 | 77,860 | ||||||
| Additions charged to operations | 20,000 | — | ||||||
| Balance at end of period | $ | 1,362,953 | $ | 1,694,249 | ||||
| Net loan charge-offs (recoveries) to average loans (1) | 0.03% | 0.18% | ||||||
| Nonperforming assets (000's) | At March 31, | At December 31, | ||||||
| Loans: | 2005 | 2004 | ||||||
| Non-accrual | $ | 1,426 | $ | 1,713 | ||||
| Past 90 days or more and still accruing | — | — | ||||||
| Troubled debt restructured | — | — | ||||||
| Total nonperforming loans | 1,426 | 1,713 | ||||||
| Real estate owned | 279 | 204 | ||||||
| Other repossessed assets | 4 | 7 | ||||||
| Total nonperforming assets | $ | 1,709 | $ | 1,924 | ||||
| Nonperforming assets to total assets | 0.73% | 0.84% | ||||||
| Nonperforming loans to total loans | 0.81% | 0.97% | ||||||
| Allowance for loan losses to nonperforming loans | 95.62% | 79.30% | ||||||
| Allowance for loan losses to net loans receivable | 0.77% | 0.77% | ||||||
| At March 31, | ||||||||
| 2005 | 2004 | |||||||
| Stockholders' equity as a % of total assets | 11.18% | 12.28% | ||||||
| Book value per share | $ | 18.34 | $ | 18.35 | ||||
| Common shares outstanding- EOP | 1,417,279 | 1,488,914 | ||||||
(1) Ratios for the three-month periods are annualized.
