Exhibit 28.1
FOR IMMEDIATE RELEASE
JULY 16, 2002
FOR ADDITIoNAL INFORMATION
CONTACT: RANDY J. SIZEMORE
SR VICE PRESIDENT, CFO
(260) 358-4680
NORTHEAST INDIANA BANCORP, INC.
ANNOUNCES SECOND QUARTER EARNINGS
HUNTINGTON, INDIANA, -- Northeast Indiana Bancorp, Inc. (NEIB), the parent
company of First Federal Savings Bank, today announced net income of $324,000
($0.22 per diluted share) for the Company's second quarter ended June 30, 2002
compared to net income of $515,000 ($0.33 per diluted share) for the second
quarter ended June 30, 2001, a decrease in net income of $191,000 or 37.1%.
Sequentially, the second quarter 2002 net income is $29,000 or 8.2% lower than
the first quarter ended March 31, 2002. The current three months earnings
represents an annualized return on average assets (ROA) of 0.56% and a return on
average equity (ROE) of 4.91% as compared to an ROA of .84% and an ROE of 7.73%
for the three months ended June 30, 2001.
Stephen E. Zahn, President and Chief Executive Officer, attributes the decrease
in second quarter earnings for June 30, 2002 compared with June 30, 2001 to the
following: increased loan loss provisions, a decline in the company's net
interest margin, losses recognized on the sale of loans, and an increase in
noninterest expenses between the two periods. Provision for loan losses
increased to $175,000 during the second quarter of 2002 compared to $100,000
during the same quarter of 2001 as the company continued to monitor asset
quality and overall market conditions in general. NEIB's ratio of reserves to
total loans was 1.28% at June 30, 2002, an increase from 1.17% at June 30, 2001.
"We have continued to see a decline in the asset quality of certain segments of
the loan portfolio, which has led to both the increased provision and the net
losses recognized on the sale of loans of ($35,000) for the current quarter as
compared to lower provisions and net gains on the sale of loans of $18,000
during the second quarter of the prior year", according to Mr. Zahn. The
company's net interest margin was 2.87% for the quarter ended June 30, 2002, a
decline from the 2.95% for the June 30, 2001 quarter end. The 2.87% does
represent a slight improvement over the 2.84% attained for the first quarter of
2002, a sign that a positive trend is occurring in the current fiscal year.
Noninterest expenses increased $78,000 to $1.25 million for the period ended
June 30, 2002 as compared to $1.17 million for the period ended June 30, 2001
mainly due to increases in both salaries and other operating expenses.
Results for the first half of the year showed net interest income at $3.18
million for the six months ended June 30, 2002 compared to $3.37 million for the
six months ended June 30, 2001, a 5.8% decrease. The net interest margin for the
six months ended June 30, 2002 of 2.85% has decreased
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compared to the same period in 2001 of 2.91%. This decrease is due to both the
decline in loans receivable between periods and the lower yields currently
available on alternative uses of funds such as interest earning deposits in
correspondent banks and security investments.
Net income for the six months ended June 30, 2002 was $677,000 ($0.46 per
diluted share) compared to $908,000 ($0.58 per diluted share) for the six months
ended June 30, 2001. ROE for the six months ended June 30, 2002 was 5.14%
compared to 6.80% for the same period of 2001.
Total assets at June 30, 2002 of $225.3 million compared to December 31, 2001
assets of $238.4 million reflects a 5.5% decrease. Asset reduction at June 30,
2002 compared to December 31, 2001 was due to a decrease in loan volume, selling
long-term fixed rate residential mortgages to the secondary market and continued
efforts to reposition the company's liabilities by allowing out of area time
deposits to leave at their maturity dates.
Shareholder's equity at June 30, 2002 was $26.6 million compared to $26.3
million at December 31, 2001, a 1.1% increase. The company repurchased 7,000
shares of treasury stock, at an average cost of $15.69, for a total cost of
approximately $110,000 during the quarter ended June 30, 2002. These repurchases
help leverage Northeast Indiana Bancorp's remaining equity and tend to improve
return on shareholder's equity. Northeast Indiana Bancorp has approximately
70,000 shares that may be repurchased under the current stock repurchase
program, which was previously announced.
The book value of NEIB's stock was $17.14 per share as of June 30, 2002. The
number of outstanding shares was 1,549,743. The last reported trade of the stock
on July 15, 2002 was $14.30 per share. This represents a 14.4%increase over the
closing price of $12.50 per share on December 31, 2001.
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
National 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.
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NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
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CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
ASSETS June 30, December 31,
-------- ------------
2002 2001
---- ----
Interest-earning cash and cash equivalents $ 10,571,630 $ 23,541,599
Noninterest earning cash and cash equivalents 2,147,248 2,750,133
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Total cash and cash equivalents 12,718,878 26,291,732
Securities available for sale 44,302,759 39,365,026
Securities held to maturity estimated market value of $266,000 and $306,000 at June 30, 2002 and
December 31, 2001 266,000 306,000
Loans held for sale 272,563 1,543,422
Loans receivable, net of allowance for loan loss June 30, 2002 $2,067,072 and December 31, 2001
$1,954,900 159,856,733 162,830,186
Accrued interest receivable 711,379 753,000
Premises and equipment 2,246,774 2,298,102
Investments in limited liability partnerships 1,465,399 1,546,177
Other assets 3,453,415 3,460,884
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Total Assets $225,293,900 $238,394,529
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits 126,912,036 137,030,011
Borrowed Funds 70,655,079 73,966,411
Accrued interest payable and other liabilities 1,166,505 1,117,069
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Total Liabilities 198,733,620 212,113,491
------------ ------------
Retained earnings - substantially restricted 26,560,280 26,281,038
------------ ------------
Total Liabilities and Shareholder's Equity $225,293,900 $238,394,529
============ ============
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CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
---- ---- ---- ----
Total interest income $ 3,628,774 $ 4,539,780 $ 7,383,076 $ 9,075,440
Total interest expense 2,039,612 2,814,844 4,205,620 5,702,361
----------- ----------- ----------- -----------
Net interest income $ 1,589,162 $ 1,724,936 $ 3,177,456 $ 3,373,079
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Provision for loan losses 175,000 100,000 392,300 250,000
Net interest income after provision for
Loan losses $ 1,414,162 $ 1,624,936 $ 2,785,156 $ 3,123,079
----------- ----------- ----------- -----------
Net realized gain(loss) on sale of securities (10,535) -- (10,535) --
Net realized gain (loss) on sale of loans (35,136) 17,556 9,920 48,816
Other 293,309 282,057 551,041 537,081
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Total noninterest income 247,638 299,613 550,426 585,897
----------- ----------- ----------- -----------
Total noninterest expenses 1,252,437 1,174,652 2,455,233 2,406,003
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Income before income tax expenses $ 409,363 $ 749,897 $ 880,349 $ 1,302,973
- ---------------------------------------------------------------------------------------------------------------------------
Income tax expenses 85,476 234,660 203,238 395,035
----------- ----------- ----------- -----------
Net Income $ 323,887 $ 515,237 $ 677,111 $ 907,938
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NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
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SELECTED FINANCIAL DATA
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
---- ---- ---- ----
Basic Earnings per share 0.22 0.33 0.46 0.58
Dilutive Earnings per share 0.22 0.33 0.45 0.57
Net interest margin 2.87% 2.95% 2.85% 2.91%
Return on average assets 0.56% 0.84% 0.58% 0.75%
Return on average equity 4.91% 7.73% 5.14% 6.80%
Average shares outstanding- primary 1,454,996 1,556,315 1,460,195 1,574,536
Average shares outstanding- diluted 1,483,310 1,574,531 1,504,366 1,601,366
At June 30,
2002 2001
---- ----
Total non- performing assets as a % of total assets 2.78% 3.09%
Stockholders' equity as a % of total assets 11.79% 11.01%
Book value per share $ 17.14 $ 16.30
Common shares outstanding- EOP 1,549,743 1,625,036