Exhibit 99.1
FOR IMMEDIATE RELEASE
APRIL 19, 2004
FOR ADDITIONAL INFORMATION
CONTACT: RANDY J SIZEMORE
SENIOR VICE PRESIDENT, CFO
(260) 358-4680
NORTHEAST INDIANA BANCORP, INC.
ANNOUNCES FIRST QUARTER EARNINGS
HUNTINGTON, INDIANA, -- Northeast Indiana Bancorp, Inc., (NEIB), the parent
company of First Federal Savings Bank, has announced net income of $403,000
($0.27 per diluted common share) for the first quarter ended March 31, 2004
compared to $481,000 ($0.33 per diluted common share) for the first quarter
ended March 31, 2003. This represents a decrease of $78,000 or 16.2% between
periods. The decrease is primarily due to much lower mortgage refinancing
volumes during the current quarter when compared to the year earlier period. The
current three months earnings equates to an annualized return on average assets
(ROA) of 0.73% and a return on average equity (ROE) of 5.92%.
Net interest income increased to $1.6 million for the quarter ended March 31,
2004 when compared to $1.5 million for the quarter ended March 31, 2003. The
Company's net interest margin also improved 17 basis points to 3.01% for the
current quarter compared to 2.84% for the year earlier quarter. This was
primarily due to a decline in the cost of interest-bearing liabilities that was
greater than the decline in interest-earning asset yields and to a lesser
extent, higher average loan balances during the quarter ended March 31, 2004
compared to the quarter ended March 31, 2003.
Net charge-offs declined to $78,000 for the quarter ended March 31, 2004
compared to $339,000 for the quarter ended March 31, 2003. This trend along with
relative stability in non-performing assets and minimal loan growth allowed the
Company to continue with no provision for loan losses during the current
quarter, unchanged from the year earlier period.
Non-interest income decreased $132,000 or 29.7% to $312,000 for the current
period compared to $444,000 during the year earlier period. This decline was
primarily due to decreases of $137,000 in net gain on sale of loans and $37,000
in trust and brokerage fees partially offset by an increase in other income of
$50,000. Mortgage refinancing volume declines led to the decrease in net gain on
sale of loans, while the conversion of trust assets to another financial
institution during the third quarter of 2003 under a revenue sharing agreement
led to the decline in trust and brokerage fees. Other income increased mainly
due to increases in cash surrender value of life insurance on new bank owned
life insurance ("BOLI") acquired late first quarter 2003 and to a lesser extent,
a decline in the amortization of mortgage servicing rights quarter to quarter.
-MORE-
Non-interest expense increased $63,000 to $1.4 million for the quarter ended
March 31, 2004 compared to $1.3 million for the quarter ended March 31, 2003.
This increase came primarily in salaries and employee benefits due to increased
funding on a defined benefit pension plan, increased ESOP expense due to the
Company's current share price, and less deferred loan origination fees due to
lower mortgage volumes.
Net loans receivable increased $1.5 million to $165.2 million at March 31, 2004
compared to $163.7 million at December 31, 2003. Deposits increased $6.9 million
or 5.6% to $128.9 million during the same time frame as all deposit area's
experienced growth. Borrowed funds declined to $64.1 million at March 31, 2004
from $76.5 million at December 31, 2003 primarily from decreases in repurchase
agreement accounts.
Shareholder's equity was $27.3 million at March 31, 2004 compared to $27.2
million at the prior year end. The Company announced that it would close out a
previously announced stock repurchase program prior to completion during the
current quarter but also announced the authorization of a new stock repurchase
program. The new stock repurchase program will enable the Company to repurchase
up to 5% or 74,446 common shares over the next twelve months. 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 book value of NEIB's stock was $18.35 per common share as of March 31, 2004.
The number of outstanding common shares was 1,488,914. The last reported trade
of the stock on April 15, 2004 was $21.21 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.
-MORE-
NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
- -------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
ASSETS March 31, December 31,
--------- ------------
2004 2003
---- ----
Interest-earning cash and cash equivalents $ 3,902,462 $ 6,849,198
Noninterest earning cash and cash equivalents 1,874,128 2,483,881
--------------------------------
Total cash and cash equivalents 5,776,590 9,333,079
Securities available for sale 40,278,949 43,687,318
Securities held to maturity estimated market value of $60,000 and $150,000 at March 31, 2004 and
December 31, 2003 60,000 150,000
Loans held for sale 228,350 -
Loans receivable, net of allowance for loan loss March 31, 2004 $1,694,249 and December 31, 2003
$1,772,109 165,192,738 163,676,825
Accrued interest receivable 779,914 798,722
Premises and equipment 2,126,833 2,061,781
Investments in limited liability partnerships 1,544,340 1,602,147
Cash surrender value of life insurance 5,005,688 4,352,129
Other assets 1,462,454 1,732,531
--------------------------------
Total Assets $222,455,856 $227,394,532
================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits 128,871,600 122,009,736
Borrowed Funds 64,142,637 76,545,485
Accrued interest payable and other liabilities 2,115,216 1,644,751
--------------------------------
Total Liabilities 195,129,453 200,199,972
--------------------------------
Retained earnings - substantially restricted 27,326,403 27,194,560
--------------------------------
Total Liabilities and Shareholder's Equity $222,455,856 $227,394,532
================================
- ------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31,
2004 2003
----- ----
Total interest income $3,009,497 $3,234,387
Total interest expense 1,434,391 1,740,049
---------- ----------
Net interest income $1,575,106 $1,494,338
- -------------------------------------------------------------------------------------------
Provision for loan losses -- --
Net interest income after provision for
Loan losses $1,575,106 $1,494,338
---------- ----------
Service charges on deposit account 84,371 84,535
Net gain on sale of loans 28,549 165,574
Net gain on sale of repossessed assets 5,690 14,354
Trust and brokerage fees 14,924 51,696
Other income 177,947 127,517
- -------------------------------------------------------------------------------------------
Total noninterest income $ 311,481 $ 443,676
- -------------------------------------------------------------------------------------------
Salaries and employee benefits 746,306 659,752
Occupancy 112,255 123,727
Data processing 164,084 169,085
Deposit insurance premiums 4,684 5,154
Professional fees 70,648 77,717
Correspondent bank charges 53,373 45,937
Other expense 204,588 211,080
- -------------------------------------------------------------------------------------------
Total noninterest expenses 1,355,938 1,292,452
- -------------------------------------------------------------------------------------------
Income before income tax expenses $ 530,649 $ 645,562
- -------------------------------------------------------------------------------------------
Income tax expenses 128,059 164,350
--------------------------
Net Income $ 402,590 $ 481,212
==========================
NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
SELECTED FINANCIAL DATA
Three Months Ended
March 31,
2004 2003
---- ----
Basic Earnings per share 0.28 0.34
Dilutive Earnings per share 0.27 0.33
Net interest margin 3.01% 2.84%
Return on average assets 0.73% 0.87%
Return on average equity 5.92% 7.23%
Average shares outstanding- primary 1,445,178 1,432,020
Average shares outstanding- diluted 1,498,448 1,478,751
- ------------------------------------------------------------------------------------------------
Allowance for loan losses:
Balance at beginning of period $1,772,109 $2,135,630
Charge-offs:
One-to-four family -- 25,954
Commercial real estate -- 201,379
Commercial -- 100,488
Consumer 112,191 92,148
---------------------------
Gross charge-offs 112,191 419,969
---------------------------
Recoveries:
One-to-four family -- --
Commercial real estate -- --
Commercial -- 13,000
Consumer 34,331 67,850
---------------------------
Gross recoveries 34,331 80,850
---------------------------
Net charge-offs 77,860 339,119
Additions charged to operations -- --
---------------------------
Balance at end of period $1,694,249 $1,796,511
===========================
Net loan charge-offs to average loans (1) 0.18% 0.85%
- ------------------------------------------------------------------------------------------------
Nonperforming assets (000's) At March 31, At December 31,
Loans: 2004 2003
---------- ----------
Non-accrual $ 2,805 $ 2,413
Past 90 days or more and still accruing -- --
Troubled debt restructured -- --
---------------------------
Total nonperforming loans 2,805 2,413
Real estate owned 89 162
Other repossessed assets 17 3
---------------------------
Total nonperforming assets $ 2,911 $ 2,578
===========================
Nonperforming assets to total assets 1.31% 1.13%
Nonperforming loans to total loans 1.68% 1.46%
Allowance for loan losses to nonperforming loans 60.39% 73.44%
Allowance for loan losses to net loans receivable 1.02% 1.07%
- ------------------------------------------------------------------------------------------------
At March 31,
2004 2003
---------- ----------
Stockholders' equity as a % of total assets 12.28% 11.85%
Book value per share $ 18.35 $ 17.93
Common shares outstanding- EOP 1,488,914 1,483,909
(1) Ratios for the three-month periods are annualized