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)
December 31, 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. (the "Registrant") issued a press release dated
January 27, 1999, attached hereto as Exhibit 28.1 announcing Cash Dividends and
Fourth Quarter Earnings.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit 28.1 Press Release dated January 27, 1999.
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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: January 27, 1999 By: /s/Stephen E. Zahn
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Stephen E. Zahn
President and Chief Executive Officer
FOR IMMEDIATE RELEASE
JANUARY 27, 1999
FOR ADDITIONAL INFORMATION
CONTACT: DARRELL E. BLOCKER
SR VICE PRESIDENT, CFO
(219) 356-3311
NORTHEAST INDIANA BANCORP, INC.
ANNOUNCES CASH DIVIDENDS AND RECORD FOURTH QUARTER EARNINGS
HUNTINGTON, INDIANA, -- Northeast Indiana Bancorp, Inc. (NEIB), parent
corporation of First Federal Savings Bank, has announced that the Corporation
will pay a cash dividend for the quarter ended December 31, 1998. This will be
the fourteenth consecutive quarterly cash dividend the Corporation has paid. The
cash dividend of $0.09 will be payable on February 25, 1999 to shareholders of
record on February 11, 1999. All earnings per share are reported under FASB's
128 basic earnings per share basis. All share and per share information has been
restated to reflect the 10% stock dividend paid in November 1998. NEIB also
announced today net income of $672,947 ($0.45 per share) for the Company's
fourth quarter ended December 31, 1998, compared to net income of $591,209
($0.35 per share) for the fourth quarter ended December 31, 1997. The current
three months earnings represents an annualized return on average assets (ROA) of
1.29% and a return on average equity (ROE) of 10.81%.
Net income for the year ended December 31, 1998 was a record $2.39 million
($1.50 per share) compared with net income of $2.19 million ($1.28 per share)
for the same period in 1997 a 17.2% increase in earnings per share. For the year
ended December 1998, NEIB's earnings represent an annualized ROA of 1.17% and a
ROE of 9.15% using average assets and equity, respectively.
Stephen E. Zahn, President, Chief Executive Officer, attributes the $196,000
increase in net income for the year ended December 1998 compared to the year
ended December 1997 to higher net interest income of $7.08 million compared to
$6.37 million in 1997. This increase in net interest income is the result of
higher average net interest earning assets and higher average spreads. Tax
benefits from the investment in a low income housing limited liability
partnership also improved our net income for 1998 by $100,000 compared to the
1997 tax benefit of $35,000. These increases are reduced by higher noninterest
expenses of $3.69 million in 1998 compared to $3.09 million in 1997.
The Corporation showed $212.4 million in assets at December 31, 1998 which is a
6.5% growth compared to the December 31, 1997 total of $199.4 million. The
majority of this asset growth was in net loans receivable which increased to
$185.9 million at December 31, 1998 compared to $174.5 million at December 31,
1997 a 6.5% growth.
The book value of NEIB's stock is $14.95 per share as of December 31, 1998
compared to $14.33 per share as of December 31, 1997. The last reported trade of
the stock was at $16.75 per share on December 31, 1998. NEIB continues to focus
on improvement in shareholder value. During the year the Company announced it's
fifth stock repurchase program to buy outstanding shares of stock. The stock
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when purchased becomes treasury shares and can be used for general corporate
purposes, including the issuance of shares in connection with grants and awards
under the Company's stock benefit plans. The Company as of December 31, 1998 had
repurchased 140,200 shares of the 180,688 shares to be repurchased in the
currently approved repurchase program. The Company has a total of 728,049 shares
in treasury stock and 1,672,417 shares outstanding at the end of period December
31, 1998. Total shareholder's equity at December 31, 1998 is $25.0 million
compared to $27.3 million at December 31, 1997. This decrease is predominantly
due to 1998 net income of $2.39 million less the repurchase of treasury shares
which amounted to approximately $4.6 million.
Over the past three months, the shares traded between $15.34 and $18.00 per
share. The Company's stock closed at $15.75 as of January 25, 1999.
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'.
