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)
September 30, 1997
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 22, 1997, attached hereto as Exhibit 28.1 announcing Third Quarter
Earnings.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit 28.1 Press Release dated October 22, 1997.
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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.
Date: October 22, 1997 By: /s/Stephen E. Zahn
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Stephen E. Zahn
President and Chief Executive Officer
Exhibit 28.1
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FOR IMMEDIATE RELEASE
OCTOBER 22, 1997
FOR ADDITIONAL INFORMATION
CONTACT: DARRELL E. BLOCKER
SR VICE PRESIDENT, CFO
(219) 356-3311
NORTHEAST INDIANA BANCORP, INC.
ANNOUNCES THIRD QUARTER EARNINGS
HUNTINGTON, INDIANA, -- Northeast Indiana Bancorp, Inc. (NEIB), the parent
company of First Federal Savings Bank today announced net income of $586,000
($0.35 per share) for the Company's third quarter ended September 30, 1997
compared to net income of $225,000 ($0.12 per share) for the third quarter ended
September 30, 1996, an increase of 160.4%. The current three months earnings
represents an annualized return on average assets (ROA) of 1.25% and a return on
average equity (ROE) of 8.66%. The September 30, 1996 third quarter and year to
date net income included the FDIC's one time assessment to recapitalize the
Savings Association Insurance Fund (SAIF). This SAIF assessment was
approximately a $453,000 expense before tax. The assessment affected net income
after tax by approximately $274,000 less income or $0.14 per share. Comparing
the quarter ended 1997 net income to 1996 net income excluding the one time
assessment reflected a 17.4% increase in net income.
Stephen E. Zahn, President and Chief Executive Officer, attributes the $361,000
increase in third quarter earnings for September 30, 1997 compared with
September 30, 1996 to improved net interest income of $1,581,000 for the three
months ended September 30, 1997 versus $1,375,000 for the comparable period
1996. The SAIF one time assessment effect on the year to date net income for
1996 was approximately $274,000 ($0.14 per share). Comparing net income year to
date September 1997 to the same period 1996 excluding the one time assessment
reflects a 17.9% increase in net income.
Results for the year to date showed net interest income at $4.6 million for the
nine months ended September 30, 1997 compared to $4.1 million for the nine
months ended September 30, 1996, a 13.5% increase. Net interest margin of 3.66%
is based on average earning assets net of reserves and average interest bearing
liabilities. The net interest margin for the nine months ended 1997 of 3.66% has
decreased compared to the same period 1996 of 3.88%. This decrease is a result
of NEIB's efforts to improve ROE using stock buybacks which have utilized liquid
assets of the Company. Further, due to strong retail loan growth during this
period, the Company was required to take on additional interest bearing
liabilities using both FHLB advances and deposits which directly effected the
net interest margin ratio. Net income for year to date was $1,601,000 (or $0.96
per share) compared to year to date 1996's net income of $1,085,000 (or $0.56
per share) a $516,000 (or $0.40 per share) increase. ROE for the nine months
ended September 30, 1997 was 8.02% compared to 4.96% for the same period 1996,
an increase of 3.06% or a 61.7% favorable change.
Total assets at September 30, 1997 of $190.3 million compared to September 30,
1996 assets of $169.5 million reflects a 12.3% increase. Shareholder equity at
September 30, 1997 was $26.8 million compared to $29.1 million at September 30,
1996. The buybacks of $3.9 million of Treasury stock during that period
accounted for the decrease in equity. As of the end of period September 30, 1997
the Company had 1,762,727 shares outstanding.
-More-
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The book value of NEIB's stock is $15.43 per share as of September 30, 1997 and
the last reported trade of the stock in September was at $19.50 per share.
Effective August 25, 1997, Stephen E. Zahn appointed a New Business Development
Manager whom has a strong position in the community along with Commercial
Banking experience. His responsibilities will include developing and
implementing a solicitation program to establish new loan and deposit
relationships for First Federal Savings Bank.
Northeast Indiana Bancorp, Inc. is headquartered at 648 North Jefferson Street,
Huntington, Indiana 46750 and the Company's traded on the Nasdaq National Market
under the symbol "NEIB".
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<TABLE>
<CAPTION>
NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
ASSETS September 30, December 31,
1997 1996
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<S> <C> <C>
Cash and cash equivalents ......................................... 3,080,266 6,672,374
Interest earning deposits in financial institutions-long term ..... 100,000 100,000
Securities available for sale ..................................... 13,714,184 11,496,031
Securities held to maturity estimated market value of $757,000
and $891,000 at September 30, 1997 and December 31, 1996 ........ 757,094 892,036
Loans receivable, net of allowance for loan loss September 30, 1997
$1,148,000 and December 31, 1996 $1,027,000 ..................... 168,958,300 146,854,690
Other real estate owned, net ...................................... -- --
Premises and equipment ............................................ 1,987,470 2,009,026
Other assets ...................................................... 1,722,599 1,519,963
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Total Assets .................................................. $190,319,913 $169,544,120
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits .......................................................... 96,969,355 85,346,241
Borrowed Funds .................................................... 65,000,000 56,000,000
Accrued interest payable and other liabilities .................... 1,008,384 1,668,763
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Total Liabilities ............................................. $162,977,739 $143,015,004
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Retained earnings - substantially restricted ...................... 27,342,174 26,529,116
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Total Liabilities and Shareholder's Equity .................... $190,319,913 $169,544,120
============ ============
</TABLE>
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<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Total interest income ........................ 3,703,266 3,053,203 10,442,184 8,566,568
Total interest expense ....................... 2,063,677 1,626,684 5,758,696 4,438,358
----------- ----------- ----------- -----------
Net interest income ....................... $ 1,639,589 $ 1,426,519 $ 4,683,488 $ 4,128,210
Provision for loan losses .................... 58,500 51,000 175,500 184,200
----------- ----------- ----------- -----------
Net interest income after provision for
loan losses ............................... $ 1,581,089 $ 1,375,519 $ 4,507,988 $ 3,944,010
----------- ----------- ----------- -----------
Total noninterest income ..................... 150,573 104,302 418,384 298,100
Total noninterest expense without FDIC expense 755,390 625,411 2,245,462 1,916,120
FDIC expense ................................. 14,392 494,927 40,977 572,206
----------- ----------- ----------- -----------
Total noninterest expenses ................ 769,782 1,120,338 2,286,439 2,488,326
Income before income tax expenses .......... $ 961,880 $ 359,483 $ 2,639,933 $ 1,753,784
ncome tax expenses .......................... 375,478 134,589 1,038,162 668,627
----------- ----------- ----------- -----------
Net Income .............................. $ 586,402 $ 224,894 $ 1,601,771 $ 1,085,157
=========== =========== =========== ===========
<CAPTION>
SELECTED FINANCIAL DATA
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Earnings per share Primary 0.35 0.12 0.96 0.56
Earnings per share Fully Diluted 0.33 0.12 0.94 0.56
Net interest margin 3.67 3.78 3.66 3.88
Return on average assets 1.25% 0.57% 1.20% 0.97%
Return on average equity 8.66% 3.18% 8.02% 4.96%
<CAPTION>
At September 30th
1997 1996
---- ----
<S> <C> <C>
Stockholders' equity as a % of total assets 14.37 17.44
Book value per share 15.43 14.13
</TABLE>
