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, 1998
NORTHEAST INDIANA BANCORP, INC.
-------------------------------
(Exact name of Registrant as specified in its Charter)
Delaware 0-26012 35-1948594
- --------------------------------------------------------------------------------
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
648 North Jefferson Street, Huntington, Indiana 46750
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (219) 356-3311
- --------------------------------------------------------------------------------
N/A
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
Northeast Indiana Bancorp, Inc. issued a press release dated July 17, 1998,
attached hereto as Exhibit 28.1 announcing First Quarter Earnings.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit 28.1 Press Release dated July 17, 1998.
<PAGE>
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.
\S\ STEPHEN E. ZAHN
------------------------------------
Date: July 17, 1998 By:
Stephen E. Zahn
President and Chief Executive Officer
Exhibit 28.1
<PAGE>
NORTHEAST INDIANA BANCORP, INC.
648 North Jefferson Street, P.O. Box 70 / Huntington, Indiana 46750
219-356-3311
FOR IMMEDIATE RELEASE
JULY 17, 1998
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 $587,000
($0.39 per basic share) for the Company's second quarter ended June 30, 1998
compared to net income of $522,000 ($0.34 per basic share) for the second
quarter ended June 30, 1997, an increase of 12.5%. The current three months
earnings represents an annualized return on average assets (ROA) of 1.16% and a
return on average equity (ROE) of 8.84%.
Stephen E. Zahn, President and Chief Executive Officer, attributes the $65,000
increase in second quarter earnings for June 30, 1998 compared with June 30,
1997 to improved net interest income of $1,760,000 for the three months ended
June 30, 1998 versus $1,542,000 for the comparable period in 1997. This income
was partially reduced by higher non-interest expenses of $887,000 for 1998
compared to $768,000 for 1997. 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. The data
processing costs also increased due to the non-capitalized expenses incurred
with the installation of a wide area network, software upgrades and training.
The wide area network and new software will be completed in the third quarter of
1998. These improvements will increase our processing efficiencies.
Results for the first half of the year showed net interest income at $3.53
million for the six months ended June 30, 1998 compared to $3.04 million for the
six months ended June 30, 1997, a 15.9% increase. Net interest margin of 3.61%
is based on net interest income divided by average earning assets net of
reserves. The net interest margin for the six months ended 1998 of 3.61% has
decreased compared to the same period 1997 of 3.65%. 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 the first half of the year was $1,130,000 (or $0.75 per share)
compared to the first half of 1997's net income of $1,015,000 (or $0.65 per
share) a $115,000 (or $0.10
<PAGE>
per share) increase. ROE for the six months ended June 30, 1998 was 8.39%
compared to 7.64% for the same period 1997, an increase of 0.75% or a 9.8%
favorable change. Total assets at June 30, 1998 of $203.3 million compared to
June 30, 1997 assets of $176.3 million reflects a 15.3% increase. Shareholder
equity at June 30, 1998 was $26.5 million compared to $26.8 million at June 30,
1997. The buybacks of $2.5 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 book value of NEIB's stock is $16.07 per share as of June 30, 1998 and the
last reported trade of the stock in June was at $21.25 per share.
The board of directors of First Federal Savings Bank has approved and management
is in the process of applying to the OTS for expanding the charter to include
Trust powers. The bank's board also approved and management is in the process of
establishing a wholly owned subsidiary as a service corporation under the Bank
to provide financial service products including but not limited to mutual funds,
brokerage, and insurance products.
The Bank has hired a person with 28 years experience in trust services to
provide the expertise these new initiatives will require. This individual for
the last six years has served as the senior trust officer responsible for
managing over $100 million in trust assets.
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.
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".
-More-
<PAGE>
NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
June 30, December 31, 1997
1998
------------ -----------------
<S> <C> <C>
ASSETS
Interest-earning cash and cash equivalents 2,486,132 3,036,847
Noninterest earning cash and cash equivalents 2,404,049 1,782,839
------------ ------------
Total cash and cash equivalents 4,890,181 4,819,686
Interest earning deposits in financial institutions 100,000 100,000
Securities available for sale 15,385,534 14,628,590
Securities held to maturity estimated market value of
$563,000 and $757,000 at June 30, 1998
and December 31, 1997 563,221 756,846
Loans receivable, net of allowance for loan loss at
June 30, 1998 of $1,316,000 and at December 31,
1997 of $1,194,000 177,888,932 174,538,907
Real estate owned -- --
Accrued interest receivable 469,531 511,950
Premises and equipment 2,048,910 1,964,374
Other assets 1,916,777 2,048,244
------------ ------------
Total Assets $203,263,086 $199,368,597
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits 122,040,489 107,549,786
Borrowed Funds 54,118,114 63,521,682
Accrued interest payable and other liabilities 591,987 1,004,495
------------ ------------
Total Liabilities $176,750,590 $172,075,963
------------ ------------
Shareholders' Equity 26,512,496 27,292,634
------------ ------------
Total Liabilities and Shareholder's Equity $203,263,086 $199,368,597
============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30th June 30th
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Total interest income 4,018,623 3,424,247 7,991,877 6,739,387
Total interest expense 2,258,857 1,882,731 4,464,579 3,695,021
---------- ---------- ---------- ----------
Net interest income $1,759,766 $1,541,516 $3,527,298 $3,044,366
---------- ---------- ---------- ----------
Provision for loan losses 90,000 58,500 180,000 117,000
---------- ---------- ---------- ----------
Net interest income after provision for
Loan losses $1,669,766 $1,483,016 $3,347,298 $2,927,366
---------- ---------- ---------- ----------
Total noninterest income 170,131 154,860 339,539 270,918
Total noninterest expenses 886,659 768,192 1,833,883 1,520,231
---------- ---------- ---------- ----------
Income before income tax expenses $ 953,238 $ 869,684 $1,852,954 $1,678,053
---------- ---------- ---------- ----------
Income tax expenses 366,552 348,054 722,723 662,684
---------- ----------
Net Income $ 586,686 $ 521,629 $1,130,231 $1,015,369
========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SELECTED FINANCIAL DATA
Three Months Ended Six Months Ended
June 30th June 30th
1998 1997 1998 1997
------ ------ ----- -----
<S> <C> <C> <C> <C>
Basic Earnings per share $ 0.39 $ 0.34 $0.75 $0.65
Dilutive Earnings per share $ 0.38 $ 0.33 $0.71 $0.62
Net interest margin 3.57% 3.65% 3.61% 3.65%
Return on average assets 1.16% 1.19% 1.12% 1.18%
Return on average equity 8.84% 7.87% 8.39% 7.64%
<CAPTION>
At June 30th
<S> <C> <C>
Stockholders' equity as a % of total assets 13.04% 15.19%
Book value per share $16.07 $15.19
</TABLE>
