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, 1998
NORTHEAST INDIANA BANCORP, INC.
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(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)
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Registrant's telephone number, including area code: (219) 356-3311
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. issued a press release dated October 15, 1998,
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 15, 1998.
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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 15, 1998 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 15, 1998
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
($0.41 per basic share) for the Company's third quarter ended September 30, 1998
compared to net income of $586,000 ($0.38 per basic share) for the third quarter
ended September 30, 1997. Net income in dollars remained the same for the
comparable third quarters, however, due to successful purchases of treasury
shares our quarterly earnings per share increased 9.1% comparing third quarter
1998 to third quarter 1997. The current three months earnings represents an
annualized return on average assets (ROA) of 1.14% and a return on average
equity (ROE) of 9.11%.
Results for September 30, 1998 year to date showed net interest income at $12.0
million compared to $10.4 million for September 30, 1997 year to date, a 15.4%
increase. Net interest margin of 3.59% is based on net interest income divided
by average earning assets net of reserves. The net interest margin for September
30, 1998 year to date of 3.59% has decreased compared to the same period 1997 of
3.66%. This decrease is a result of NEIB's efforts to improve ROE using stock
buybacks, which have utilized liquid assets resulting in additional borrowings
of the Company. Net interest margin is also affected adversely because loan
products are being refinanced at lower rates along with new loans during this
lower rate environment. Further, due to strong retail loan growth during this
twelve month period, the Company was required to take on additional interest
bearing liabilities using both FHLB advances and deposits which directly
affected the net interest margin ratio. Net income for September 30, 1998 year
to date was $1,716,000 (or $1.16 per share) compared to the same period
September 30, 1997 net income of $1,602,000 (or $1.02 per share) a $114,000 (or
$0.14 per share) increase. ROE for the nine months ended September 30, 1998 was
8.63% compared to 7.96% for the same period 1997, an increase of 0.67% or a 8.4%
favorable change. Total assets at September 30, 1998 of $209.3 million compared
to September 30, 1997 assets of $177.0 million reflects a 18.2% increase.
Shareholder equity at September 30, 1998 was $24.6 million compared to $27.3
million at September 30, 1997. The buybacks of $5.0 million of Treasury stock
during that period and dividends paid accounted for the decrease in equity,
which leverages the Company's remaining equity and tends to improve return on
shareholders' equity.
The current stock repurchase program announced in July 1998 is continuing.
Through today NEIB has purchased 122,000 shares of the approximate 164,000
shares authorized by NEIB's board which leaves approximately 42,000 shares that
can be purchased from time to time over the next nine months. The book value of
NEIB's stock is $16.07 per share as of September 30, 1998 and the last reported
trade of the stock in September was at $17.00 per share.
Northeast Indiana Bancorp, Inc. is headquartered at 648 North Jefferson Street,
Huntington, Indiana 46750 and the Company is traded on the Nasdaq National
Market under the symbol "NEIB".
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<TABLE>
<CAPTION>
NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
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CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
ASSETS September 30, December 31,
1998 1997
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<S> <C> <C>
Interest-earning cash and cash equivalents 7,406,113 3,036,847
Noninterest earning cash and cash equivalents 1,389,449 1,782,839
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Total cash and cash equivalents 8,795,562 4,819,686
Interest earning deposits in financial institutions 100,000 100,000
Securities available for sale 13,158,549 14,628,590
Securities held to maturity estimated market value of $529,000 and $756,846 at September 30, 1998
and December 31, 1997 528,731 756,846
Loans receivable, net of allowance for loan loss September 30, 1998 $1,393,000 and
December 31, 1997 $1,194,000 182,224,811 174,538,907
Real estate owned -- --
Accrued interest receivable 428,629 511,950
Premises and equipment 2,142,187 1,964,374
Other assets 1,884,014 2,048,244
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Total Assets $209,262,483 $199,368,597
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits 129,978,528 107,549,786
Borrowed Funds 53,969,918 63,521,682
Accrued interest payable and other liabilities 688,486 1,004,495
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Total Liabilities $184,636,932 $172,075,963
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Retained earnings - substantially restricted 24,625,551 27,292,634
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Total Liabilities and Shareholder's Equity $209,262,483 $199,368,597
============ ============
</TABLE>
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<TABLE>
<CAPTION>
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CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Total interest income 4,052,996 3,703,076 12,044,873 10,442,464
Total interest expense 2,298,271 2,063,674 6,762,850 5,758,696
----------- ----------- ----------- -----------
Net interest income $ 1,754,725 $ 1,639,402 $ 5,282,023 $ 4,683,768
----------- ----------- ----------- -----------
Provision for loan losses 90,000 58,500 270,000 175,500
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Net interest income after provision for
loan losses $ 1,664,725 $ 1,580,902 $ 5,012,023 $ 4,508,268
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Total noninterest income 187,004 160,899 526,543 431,817
Total noninterest expense without FDIC expense 884,878 765,529 2,687,062 2,259,175
FDIC expense 18,124 14,392 49,823 40,977
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Total noninterest expenses 903,002 779,921 2,736,885 2,300,152
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Income before income tax expenses $ 948,727 $ 961,880 $ 2,801,681 $ 2,639,933
----------- ----------- ----------- -----------
Income tax expenses 362,551 375,478 1,085,274 1,038,162
----------- ----------- ----------- -----------
Net Income $ 586,176 $ 586,402 $ 1,716,407 $ 1,601,771
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<CAPTION>
SELECTED FINANCIAL DATA
Three Months Ended Nine Months Ended
September 30 September 30
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Basic Earnings per share $ 0.41 $ 0.38 $ 1.16 $ 1.02
Dilutive Earnings per share $ 0.40 $ 0.37 $ 1.10 $ 1.00
Net interest margin 3.53 3.67 3.59 3.66
Return on average assets 1.14% 1.25% 1.13% 1.21%
Return on average equity 9.11% 8.66% 8.63% 7.96%
<CAPTION>
At September 30th
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Stockholders' equity as a % of total assets 11.77% 13.68%
Book value per share $ 16.06 $ 15.83
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