SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 16, 1996
NORTHEAST INDIANA BANCORP, INC.
(Exact name of Registrant as specified in its Charter)
Delaware 0-26012 35-1948594
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
648 North Jefferson Street, Huntington, Indiana 46750
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(Address of principal executive offices) (Zip Code)
(219) 356-3311
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Registrant's telephone number, including area code
N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events
Northeast Indiana Bancorp, Inc. (the "Registrant") issued a press release dated
October 16, 1996, attached hereto as Exhibit 28.1 announcing Third Quarter 1996
Earnings.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit 28.1 Press Release dated October 16, 1996.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
NORTHEAST INDIANA BANCORP, INC.
By: \S\ STEPHEN E. ZAHN
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Date: October 16, 1996 Stephen E. Zahn
President and Chief Executive Officer
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FOR IMMEDIATE RELEASE
OCTOBER 16, 1996
FOR ADDITIONAL INFORMATION
CONTACT: DARRELL E. BLOCKER
SR VICE PRESIDENT, CFO
(219) 356-3311
NORTHEAST INDIANA BANCORP, INC.
ANNOUNCES THIRD QUARTER 1996 EARNINGS AND THE
IMPACT OF A ONE TIME FDIC RECAPITALIZATION ASSESSMENT
HUNTINGTON, INDIANA, -- Northeast Indiana Bancorp, Inc. (NEIB), the parent
company of First Federal Savings Bank, Huntington, IN announced today net income
of $225,000 or $0.12 per share for the third quarter ended September 30, 1996,
compared to third quarter 1995 net income of $398,000 or $0.18 per share, a 43%
decrease. This decrease in earnings is attributable to the one time special
assessment charged to all thrift institutions insured under the FDIC Savings
Association Insured Fund (SAIF) program to recapitalize the SAIF. First Federal
Savings Bank was required to expense approximately $453,000 as an assessment
which had a net after tax effect of approximately $274,000 less income for the
quarter or $0.14 per share.
Net interest income before provision for loan losses for the third quarter ended
September 30, 1996 increased $212,000 to $1.4 million compared to third quarter
1995 net interest income of $1.2 million. This increase was due to a $552,000
increase in interest income offset by a $340,000 increase in interest expenses
comparing the quarters ended September 30, 1996 to September 30, 1995. These
increases were due to a combination of higher earning asset balances and yields
and also higher interest bearing liability balances and rates.
Non-interest income for the quarter ended September 30, 1996 has risen to
$106,000 compared to $93,000 for the quarter ended September 30, 1995. The
increase is due to higher fee income for the quarter attributable to growth in
the loan and deposit base.
Non-interest expense for the quarter ended September 30, 1996 was $1,122,000
compared to $580,000 for the quarter ended September 30, 1995. The largest
expense was for the additional FDIC assessment for the one time recapitalization
of the SAIF fund of $453,000 which accounts for 84% of the $542,000 increase for
third quarter 1996 expense over the same quarter 1995. Income tax expense
decreased $122,000 due to the lower income before taxes for the third quarter
1996 as a result of the one time FDIC assessment.
Net Income for the nine months ended September 30, 1996 was $1,085,000 or $0.56
per share a $149,000 or 15.9% increase in net income compared to the nine months
ended September 30, 1995 of $936,000. The increase in the year to date 1996
compared to year to date 1995 net income was limited by the FDIC assessment. As
the initial public offering was effective June 27, 1995, no earnings per share
for the nine months ended September 30, 1995 was reported.
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Northeast Indiana Bancorp, Inc.
October 16, 1996 Press Release
Page 2
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The nine months ended September 30, 1996 has shown considerable growth in assets
to $160.0 million compared to $137.6 million at December 31, 1995. The $22.4
million growth in assets includes $6.2 million in additional securities
available for sale and $16.6 million in loans. The growth in earning assets were
funded by increased deposits of $9.7 million to $77.9 million, and increased
borrowings of $15.5 million to $53.0 million. A portion of the funds provided by
the interest bearing liabilities also were used to buy back $4.0 million worth
of stock which is allocated to the Recognition and Retention Plan (RRP) and
Treasury Stock. As of September 30, 1996 NEIB had 228,539 shares of Treasury
Stock available for general corporate purposes including the issuance of shares
in connection with grants and awards under the Company's stock based benefit
plans.
The nine months ended September 30, 1996 income statement reflects the growth in
assets, net interest income before provision for loan losses of $4.1 million
compared to the nine months ended September 30, 1995 of $3.1 million. The $1.0
million increase is a result of $1.5 million increases in interest income
reduced by the $427,000 increase in interest expense. Non-interest expense of
$2.5 million for the nine months ended September 30, 1996 compared to the $1.7
million for the same period ended 1995 shows a $825,000 increase. The majority
of the increased expense is again due to the $453,000 FDIC assessment in
September. The other significant increase is due to higher compensation and
benefits of $226,000 primarily due to the additional costs associated with the
RRP benefits approved in January 1996.
NEIB continues to focus on improvement in shareholder value. During the third
quarter the Company announced another stock repurchase program to repurchase up
to 10% of the outstanding shares or approximately 195,859 shares in the open
market over the next 12 months. The Company has purchased 55,000 shares toward
that goal and now has 1,903,586 shares outstanding.
The Company's stock is traded on the Nasdaq National Market under the symbol
"NEIB".
See Attached Condensed Consolidated Financial Statements
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NORTHEAST INDIANA BANCORP
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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
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CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
ASSETS September 30, December 31,
1996 1995
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<S> <C> <C>
Cash and due from financial institutions ........................................................ 3,512,555 2,467,934
Interest earning deposits in financial institutions-short term .................................. 312,918 2,204,407
Interest earning deposits in financial institutions-long term ................................... 100,000 100,000
Securities available for sale ................................................................... 10,062,365 3,820,759
Securities held to maturity estimated market value of $893,915 and
$986,000 at September 30, 1996 and December 31, 1995 ......................................... 892,342 985,906
Loans receivable, net of allowance for loan loss September 30, 1996
$1,018,108 and December 31, 1995 $880,566 .................................................... 139,188,298 122,640,770
Other real estate owned, net .................................................................... 0 0
Federal Home Loan Bank stock, at cost ........................................................... 2,650,000 2,075,000
Premises and equipment .......................................................................... 2,041,468 2,131,617
Other assets .................................................................................... 1,272,361 1,142,188
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Total Assets ................................................................................ $160,032,307 $137,568,581
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits ........................................................................................ 77,922,142 68,202,930
Borrowed Funds .................................................................................. 52,995,389 37,500,000
Accrued interest payable and other liabilities .................................................. 1,198,606 832,606
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Total Liabilities ........................................................................... $132,116,137 $106,535,536
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Retained earnings - substantially restricted .................................................... 27,916,170 31,033,045
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Total Liabilities and Shareholder's Equity .................................................. $160,032,307 $137,568,581
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CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Total interest income .............................. 3,052,682 2,501,039 8,565,237 7,066,120
Total interest expense ............................. 1,626,684 1,286,835 4,438,358 4,011,826
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Net interest income ............................. $1,425,998 $1,214,204 $4,126,879 $3,054,294
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Provision for loan losses .......................... 51,000 71,610 184,200 182,148
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Net interest income after provision for
loan losses ..................................... $1,374,998 $1,142,594 $3,942,679 $2,872,146
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Total noninterest income ........................... 106,613 92,939 305,347 257,882
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Total noninterest expense without FDIC SAIF expense 627,201 540,895 1,922,036 1,551,296
FDIC Expense ...................................... 42,002 39,640 119,281 118,141
Special SAIF Assessment ........................... 452,925 -- 452,925 --
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Total noninterest expenses ......................... 1,122,128 580,535 2,494,242 1,669,437
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Income before income tax expenses ................ $ 359,483 $ 654,998 $1,753,784 $1,460,591
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Income tax expenses ................................ 134,589 256,576 668,627 525,081
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Net Income .................................... $ 224,894 $ 398,422 $1,085,157 $ 935,510
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SELECTED FINANCIAL DATA
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Earnings per share ................. $ 0.12 $ 0.18 $ 0.56 N/A
Net interest margin ................ 3.72 3.82 3.81 3.36
Return on average assets ........... 0.57% 1.22% 0.97% 1.01%
Return on average equity ........... 3.18% 5.21% 4.96% 6.43%
At September 30th
1996 1995
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Stockholders' equity as a % of total
assets ............................ 17.44% 23.62%
Book value per share $ 14.29 14.07
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