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, 1999
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)
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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
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Northeast Indiana Bancorp, Inc. issued a press release dated July 16, 1999,
attached hereto as Exhibit 28.1 announcing Second Quarter Earnings.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits
Exhibit 28.1 Press Release dated July 16, 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: July 16, 1999 By: /s/ Stephent E. Zahn
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Stephen E. Zahn
President and Chief Executive Officer
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Exhibit 28.1
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FOR IMMEDIATE RELEASE
JULY 16, 1999
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 $690,000
($0.46 per basic share) for the Company's second quarter ended June 30, 1999
compared to net income of $587,000 ($0.36 per basic share) for the second
quarter ended June 30, 1998, an increase in net income of 17.5% or an increase
of 31.4% per basic share. The current three months earnings represents an
annualized return on average (ROA) of 1.22% and a return on average equity (ROE)
of 10.88%.
Stephen E. Zahn, President and Chief Executive Officer, attributes the $103,000
increase in second quarter earnings for June 30, 1999 compared with June 30,
1998 to improved net interest income of $1,964,000 for the three months ended
June 30, 1999 versus $1,764,000 for the comparable period in 1998. The income
was favorably effected by the provision for loan loss expense during the second
quarter 1999 of $35,000 compared to $90,000 for the same period in 1998 or a
$55,000 reduction in provision expense. This reduction was due to the board's
regular review of the current reserves and loan portfolio. This income was
partially reduced by higher non-interest expenses of $1,099,000 for 1999
compared to $888,000 for 1998. This increased expense was primarily due to costs
associated with employee 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 to support growth
including the wide area network, software upgrades and training. Non-interest
expenses for year to date June 1999 also include operating costs for the Trust
Department opened in the fourth quarter 1998 and the Financial Services
subsidiary opened in the first quarter 1999.
Results for the first half of the year showed net interest income at $3.85
million for the six months ended June 30, 1999 compared to $3.53 million for the
six months ended June 30, 1998, a 9.1% increase. Net interest margin of 3.66% is
based on the net interest income divided by average earning assets net of
reserves. The net interest margin for the six months ended June 30, 1999 of
3.66% has increased compared to the same period 1998 of 3.61%. This increase is
due to the interest costing liabilities repricing downward faster than the
interest earning assets and also from a successful effort to improve our deposit
mix along with growth in securities sold with repurchase agreements. Net income
for the first half of the year was $1.27 million (or $0.85 per basic share)
compared to the first half of 1998's net income of $1.13 million (or $0.68 per
basic share) a $141,000 (or $.17 per share) increase. ROE for the six months
ended June 30, 1999 was 10.84% compared to 8.39% for the same period of 1998, an
increase of 2.45% or 29.2% favorable change.
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Total assets at June 30, 1999 of $239.5 million compared to December 31, 1998
assets of $212.4 million reflects a 12.8% increase. Asset growth at June 30,
1999 compared to December 31, 1998 was partially due to a $9.2 million increase
in net loans receivable composed of $5.1 million increase in mortgage loans and
a $4.1 million increase in commercial and consumer loans. The investments
available for sale increased $20.4 million with the majority of this increase
occurring in May and June as a result of growth in the bank's funding sources
including deposits and securities sold with repurchase agreements.
Shareholder equity at June 30, 1999 was $25.5 million compared to $25.0 million
at December 31, 1998. The buybacks of $472,000 of Treasury stock during that
period and dividends paid partially reduced the increase from net income year to
date in equity. These reductions help leverage the Company's remaining equity
and tend to improve return on shareholder's equity.
The book value of NEIB's stock is $15.57 per share as of June 30, 1999 and the
last reported trade of the stock in June was at $15.00 per share.
The board of directors of First Federal Savings Bank approved at the June board
meeting as previously reported a new stock repurchase program which allows
management to purchase from time to time up to 10% of the outstanding shares
over the next twelve months or up to 163,785 shares.
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".
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NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
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CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
ASSETS June 30, December 31,
1999 1998
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<S> <C> <C>
Interest-earning cash and cash equivalents $ 2,105,782 $ 4,079,792
Noninterest earning cash and cash equivalents 1,984,465 2,215,845
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Total cash and cash equivalents 4,090,247 6,295,637
Interest earning deposits in financial institutions 100,000 100,000
Securities available for sale 34,064,052 13,658,691
Securities held to maturity estimated market value of $492,000 and $528,000 at
June 30, 1999 and December 31, 1998 492,912 528,424
Loans receivable, net of allowance for loan loss June 30, 1999 $1,564,000 and
December 31, 1998 $1,454,000 195,073,888 185,906,309
Real estate owned 89,361 110,712
Accrued interest receivable 708,436 487,393
Premises and equipment 2,324,732 2,265,347
Investments in limited liability partnerships 1,366,064 1,400,000
Other assets 1,224,559 1,672,079
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Total Assets $ 239,534,251 $ 212,424,592
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits 123,700,114 123,335,582
Borrowed Funds 89,842,694 63,080,275
Accrued interest payable and other liabilities 498,272 1,004,099
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Total Liabilities 214,041,080 187,419,956
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Retained earnings - substantially restricted 25,493,171 25,004,636
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Total Liabilities and Shareholder's Equity $ 239,534,251 212,424,592
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CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Total interest income $ 4,281,151 4,018,623 8,331,286 7,991,877
Total interest expense 2,316,786 2,258,857 4,482,998 4,464,579
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Net interest income $ 1,964,365 $ 1,759,766 $ 3,848,288 $ 3,527,298
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Provision for loan losses 34,500 90,000 135,000 180,000
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Net interest income after provision for
Loan losses $ 1,929,865 $ 1,669,766 $ 3,713,288 $ 3,347,298
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Total noninterest income 208,169 170,131 397,460 339,539
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Total noninterest expenses 1,029,313 886,659 2,060,716 1,833,883
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Income before income tax expenses $ 1,108,721 $ 953,238 $ 2,050,032 $ 1,852,954
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Income tax expenses 418,680 366,552 778,967 722,723
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Net Income $ 690,041 $ 586,687 $ 1,271,065 $ 1,130,231
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SELECTED FINANCIAL DATA
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Basic Earnings per share 0.46 0.36 0.85 0.68
Dilutive Earnings per share 0.46 0.35 0.82 0.65
Net interest margin 3.62 3.57 3.66 3.61
Return on average assets 1.22% 1.16% 1.16% 1.12%
Return on average equity 10.88% 8.84% 10.03% 8.39%
At June 30
Total non-performing assets as a percentage
of total assets 0.52% 0.44%
Stockholders' equity as a % of total assets 10.64% 13.04%
Book value per share $ 15.57 14.61
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