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)
June 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
July 16, 1997, attached hereto as Exhibit 28.1 announcing SECOND QUARTER
EARNINGS.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit 28.1 Press Release dated July 16, 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: July 16, 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
JULY 16, 1997
FOR ADDITIONAL INFORMATION
CONTACT: DARRELL E. BLOCKER
SR VICE PRESIDENT, CFO
(219) 356-3311
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 $521,000
($0.32 per share) for the Company's second quarter ended June 30, 1997 compared
to net income of $463,000 ($0.24 per share) for the second quarter ended June
30, 1996, an increase of 12.5%. The current three months earnings represents an
annualized return on average assets (ROA) of 1.19% and a return on average
equity (ROE) of 7.87%.
Stephen E. Zahn, President and Chief Executive Officer, attributes the $58,000
increase in second quarter earnings for June 30, 1997 compared with June 30,
1996 to improved net interest income of $1,541,000 for the three months ended
June 30, 1997 versus $1,382,000 for the comparable period 1996. This income was
partially reduced by higher non-interest expense of $768,000 for 1997 compared
to $678,000 for 1996. This increased expense was primarily due to costs
associated with employee stock benefit plans and increases in compensation
including additional staff needed to serve our customer growth.
Results for the first half of the year showed net interest income at $3.04
million for the six months ended June 30, 1997 compared to $2.70 million for the
six months ended June 30, 1996, a 12.6% increase. Net interest margin of 3.65%
is based on average earning assets net of reserves and average interest bearing
liabilities. The net interest margin for the six months ended 1997 of 3.65% has
decreased compared to the same period 1996 of 3.93%. 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 the first half of the year was
$1,015,000 (or $0.62 per share) compared to the first half of 1996's net income
of $860,000 (or $0.44 per share) a $155,000 (or $0.22 per share) increase. ROE
for the six months ended June 30, 1997 was 7.69% compared to 5.82% for the same
period 1996, an increase of 1.87% or a 32.1% favorable change.
Total assets at June 30, 1997 of $176.3 million compared to June 30, 1996 assets
of $154.1 million reflects a 14.4% increase. Shareholder equity at June 30, 1997
was $26.8 million compared to $29.1 million at June 30, 1996. The buybacks of
$3.9 million of Treasury stock during that period accounted for the decrease in
equity.
The book value of NEIB's stock is $15.19 per share as of June 30, 1997 and the
last reported trade of the stock in June was at $14.75 per share.
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 June 30, December 31,
1997 1996
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<S> <C> <C>
Cash and cash equivalents ........................................ 3,402,093 6,672,374
Interest earning deposits in financial institutions-long term .... 100,000 100,000
Securities available for sale .................................... 12,693,396 11,496,031
Securities held to maturity estimated market value of $789,000 and
$891,000 at June 30, 1997 and December 31, 1996 ............... 789,334 892,036
Loans receivable, net of allowance for loan loss June 30, 1997
$1,112,000 and December 31, 1996 $1,027,300 ................... 155,727,447 146,854,690
Other real estate owned, net ..................................... 44,910 --
Premises and equipment ........................................... 1,996,108 2,009,026
Other assets ..................................................... 1,555,757 1,519,963
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Total Assets ................................................. $176,309,045 $169,544,120
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits ......................................................... 87,723,488 85,346,241
Borrowed Funds ................................................... 61,000,000 56,000,000
Accrued interest payable and other liabilities ................... 811,998 1,668,763
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Total Liabilities ............................................ $149,535,486 $143,015,004
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Retained earnings - substantially restricted ..................... 26,773,559 26,529,116
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Total Liabilities and Shareholder's Equity ................... $176,309,045 $169,544,120
============ ============
</TABLE>
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<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30 June 30
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1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Total interest income ........................ 3,424,334 2,846,772 6,739,387 5,513,365
Total interest expense ....................... 1,882,731 1,463,045 3,695,019 2,811,673
---------- ---------- ---------- ----------
Net interest income ....................... $1,541,603 $1,383,727 $3,044,368 $2,701,692
---------- ---------- ---------- ----------
Provision for loan losses .................... 58,500 51,000 117,000 133,200
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Net interest income after provision for
loan losses ............................... $1,483,103 $1,332,727 $2,927,368 $2,568,492
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Total noninterest income ..................... 153,498 102,721 270,925 193,797
Total noninterest expense without FDIC expense 754,300 638,115 1,493,657 1,290,709
FDIC expense ................................. 13,900 38,981 26,583 77,279
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Total noninterest expenses ................ 766,918 677,096 1,520,240 1,367,988
---------- ---------- ---------- ----------
Income before income tax expenses .......... $ 869,683 $ 758,352 $1,678,053 $1,394,301
---------- ---------- ---------- ----------
Income tax expenses .......................... 348,054 295,336 662,684 534,038
---------- ---------- ---------- ----------
Net Income .............................. $ 521,629 $ 463,016 $1,015,369 $ 860,263
========== ========== ========== ==========
<CAPTION>
SELECTED FINANCIAL DATA
Three Months Ended Six Months Ended
June 30 June 30
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1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Earnings per share ............. $ 0.32 $ 0.24 $ 0.62 $ 0.44
Net interest margin ............ 3.65 3.90 3.65 3.93
Return on average assets ....... 1.19 1.24 1.17 1.19
Return on average equity ....... 7.87 6.42 7.69 5.82
<CAPTION>
At June 30th
--------------------
1997 1996
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<S> <C> <C>
Stockholders' equity as a % of total assets 15.19 18.90
Book value per share 15.19 14.13
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