Exhibit 28.1
FOR IMMEDIATE RELEASE
OCTOBER 23, 2000
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(Bank), today announced net income of
$481,000 ($0.30 per basic share) for the Company's third quarter ended September
30, 2000 compared to net income of $672,000 ($0.42 per basic share) for the
third quarter ended September 30, 1999, a decrease in net income of 28.4% or a
decrease of 28.5% per basic share. The current three months earnings represents
an annualized return on average (ROA) of 0.75% and a return on average equity
(ROE) of 7.21%.
Stephen E. Zahn, President and Chief Executive Officer, attributes the $191,000
decrease in third quarter earnings for September 30, 2000 compared with
September 30, 1999 to an increase in provision for loan losses of $145,000 and a
decrease in net interest income of $282,000 from $1,720,000 for the three months
ended September 30, 2000 versus $2,002,000 for the comparable period in 1999.
Income was also reduced during the third quarter by higher non-interest expenses
of $74,000 from $1,141,000 for 2000 compared to $1,067,000 for 1999. 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 needs. The increased operating expenses were offset partially by an
increase in noninterest income and lower taxes for the period. The lower taxes
include an adjustment for Indiana Financial Institution Tax for the year 1999
and year to date 2000.
Year to date results showed net interest income at $5.51 million for the nine
months ended September 30, 2000 compared to $5.85 million for the nine months
ended September 30, 1999, a 5.8% decrease. The net interest margin for the nine
months ended September 30, 2000 of 3.00% has decreased compared to the same
period 1999 of 3.56%. This decrease is due to the interest costing liabilities
repricing upward faster than the interest earning assets.
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Net income for the first nine months of this year was $1.50 million (or $0.94
per basic share) compared to the first nine months of 1999's net income of $1.94
million (or $1.19 per basic share) a $439,000 (or $.25 per share) decrease. ROE
for the nine months ended September 30, 2000 was 7.67% compared to 10.19% for
the same period of 1999, a decrease of 2.52%.
Total assets at September 30, 2000 of $258.9 million compared to December 31,
1999 assets of $254.7 million reflects a 1.65% increase. Asset growth at
September 30, 2000 compared to December 31, 1999 except for growth in short term
interest earnings funds, was flat due to slow loan volume and an effort to
reposition our liabilities.
Shareholder equity at September 30, 2000 was $26.9 million compared to $25.7
million at December 31, 1999. The buybacks of $318,000 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 $15.56 per share as of September 30, 2000 and
the last reported trade of the stock in September was at $11.50 per share. NEIB
had approximately 1,726,000 shares outstanding at September 30, 2000.
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
<TABLE>
<CAPTION>
ASSETS September 30, December 31,
2000 1999
------------------ ----------------
<S> <C> <C>
Interest-earning cash and cash equivalents $ 8,204,380 $ 2,938,701
Noninterest earning cash and cash equivalents 2,630,878 2,960,502
------------------ ----------------
Total cash and cash equivalents 10,835,258 5,899,203
Interest earning deposits in financial institutions - 100,000
Securities available for sale 33,365,941 33,192,217
Securities held to maturity (fair value:
September 30, 2000- $ 383,081; December 31, 1999 - $456,511 383,081 456,511
Loans receivable, net of allowance for loan loss
September 30, 2000 $1,584,987 and December 31, 1999 $1,766,700 206,151,838 208,394,576
Accrued interest receivable 1,082,684 839,967
Premises and equipment 2,223,343 2,292,342
Investments in limited liability partnerships 1,739,252 1,332,128
Other assets 3,164,448 2,239,874
------------------ -----------------
Total Assets $ 258,945,845 $ 254,746,818
================== =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits 132,676,803 143,211,593
Borrowed Funds 98,190,697 84,753,919
Accrued interest payable and other liabilities 1,227,057 1,126,007
------------------ ----------------
Total Liabilities 232,094,557 229,091,519
------------------ ----------------
Retained earnings - substantially restricted 26,851,288 25,655,299
------------------ ----------------
Total Liabilities and Shareholder's Equity $ 258,945,845 254,746,818
================== ================
</TABLE>
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CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Total interest income $ 4,969,847 $ 4,570,687 $ 14,742,949 $ 12,901,973
Total interest expense 3,250,230 2,569,102 9,235,547 7,052,100
------------ ------------ ------------ ------------
Net interest income $ 1,719,617 $ 2,001,585 $ 5,507,402 $ 5,849,873
------------ ------------ ------------ ------------
Provision for loan losses 191,250 46,500 573,750 181,500
------------ ------------ ------------ ------------
Net interest income after provision for
Loan losses $ 1,528,367 $ 1,955,085 $ 4,933,652 $ 5,668,373
------------ ------------ ------------ ------------
Net Realized gain (loss) on sale of securities -- -- (1,563) --
Other 272,354 213,600 727,039 611,060
------------ ------------ ------------ ------------
Total noninterest income 272,354 213,600 725,476 611,060
Total noninterest expenses 1,140,801 1,066,676 3,471,938 3,127,392
------------ ------------ ------------ ------------
Income before income tax expenses $ 659,920 $ 1,102,009 $ 2,187,190 $ 3,152,041
------------ ------------ ------------ ------------
Income tax expenses 179,008 429,815 682,706 1,208,782
------------ ------------ ------------ ------------
Net Income $ 480,912 $ 672,194 $ 1,504,484 $ 1,943,259
============ ============ ============ ============
</TABLE>
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SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Basic Earnings per share 0.30 0.42 0.94 1.19
Dilutive Earnings per share 0.30 0.41 0.92 1.15
Net interest margin 2.82 3.43 3.00 3.56
Return on average assets 0.75% 1.11% 0.78% 1.15%
Return on average equity 7.21% 10.51% 7.67% 10.19%
Average shares outstanding-primary 1,591,684 1,619,144
Average shares outstanding-diluted 1,601,354 1,638,558 7.67 10.19
At September 30
Total non-performing assets as a percentage
of total assets 0.91% 0.55%
Stockholders' equity as a % of total assets 10.46% 10.58%
Book value per share $ 15.56 $ 14.40
Common shares outstanding - ESOP 1,726,036 1,785,279
</TABLE>
