Northeast Indiana Bancorp, Inc. Announces First Quarter Earnings
HUNTINGTON, Ind., April 19 /PRNewswire-FirstCall/ -- 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. 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 areas 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. Shareholders' 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 shareholders' 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. 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 Shareholders' 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 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. DATASOURCE: Northeast Indiana Bancorp, Inc. CONTACT:
Randy J Sizemore, Senior Vice President, CFO of Northeast Indiana
Bancorp, Inc., +1-260-358-4680 Web site:
http://www.firstfedhuntington.com/
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