Exhibit 28.1
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FOR IMMEDIATE RELEASE
JULY 21, 2000
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 $505,000
($0.32 per basic share) for the Company's second quarter ended June 30, 2000
compared to net income of $690,000 ($0.42 per basic share) for the second
quarter ended June 30, 1999, a decrease in net income of 26.8% or a decrease of
23.8% per basic share. The current three months earnings represents an
annualized return on average (ROA) of 0.79% and a return on average equity (ROE)
of 7.77%.
Stephen E. Zahn, President and Chief Executive Officer, attributes the $185,000
decrease in second quarter earnings for June 30, 2000 compared with June 30,
1999 to additional provision for loan losses and contracted net interest income
of $1,859,000 for the three months ended June 30, 2000 versus $1,964,000 for the
comparable period in 1999. The income was unfavorably effected by the provision
for loan loss expense during the second quarter 2000 of $191,000 compared to
$35,000 for the same period in 1999 or a $156,000 increase in provision expense.
This increase was due to the Board's regular review of the current reserves and
loan portfolio. Income was also reduced by higher non-interest expenses of
$1,163,000 for 2000 compared to $1,029,000 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.
Results for the first half of the year showed net interest income at $3.79
million for the six months ended June 30, 2000 compared to $3.85 million for the
six months ended June 30, 1999, a 1.6% decrease. The net interest margin for the
six months ended June 30, 2000 of 3.08% has decreased compared to the same
period 1999 of 3.66%. 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 half of the year was $1.02 million (or $0.64 per basic
share) compared to the first half of 1999's net income of $1.27 million (or
$0.77 per basic share) a $248,000 (or $.13 per share) decrease. ROE for the six
months ended June 30, 2000 was 7.90% compared to 10.03% for the same period of
1999, a decrease of 2.13%.
Total assets at June 30, 2000 of $255.9 million compared to December 31, 1999
assets of $254.7 million reflects a 0.40% increase. Asset growth at June 30,
2000 compared to December 31, 1999 was flat due to slow loan volume and an
effort to reposition our liabilities.
Shareholder equity at June 30, 2000 was $26.4 million compared to $25.7 million
at December 31, 1999. The buybacks of $235,000 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 $15.21 per share as of June 30, 2000 and the
last reported trade of the stock in June was at $11.50 per share.
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 June 30, December 31,
2000 1999
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<S> <C> <C>
Interest-earning cash and cash equivalents $ 2,490,772 $ 2,938,701
Noninterest earning cash and cash equivalents 2,787,242 2,960,502
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Total cash and cash equivalents 5,278,014 5,899,203
Interest earning deposits in financial institutions - 100,000
Securities available for sale 33,173,189 33,192,217
Securities held to maturity estimated market value of
$420,147 and $456,511 at June 30, 200 and
December 31, 1999 420,147 456,511
Loans receivable, net of allowance for loan loss
June 30, 2000 $1,438,687 and December 31, 1999
$1,766,700 208,697,189 208,394,576
Accrued interest receivable 893,818 839,967
Premises and equipment 2,270,208 2,292,342
Investments in limited liability partnerships 1,774,664 1,332,128
Other assets 3,385,462 2,239,874
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Total Assets $ 255,892,691 $ 254,746,818
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits 126,360,813 143,211,593
Borrowed Funds 102,020,577 84,753,919
Accrued interest payable and other liabilities 1,144,133 1,126,007
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Total Liabilities 229,525,523 229,091,519
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Retained earnings - substantially restricted 26,367,168 25,655,299
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Total Liabilities and Shareholder's Equity $ 255,892,691 254,746,818
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CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Total interest income $ 4,932,184 $ 4,281,151 $ 9,773,103 $ 8,331,286
Total interest expense 3,072,768 2,316,786 5,985,317 4,482,998
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Net interest income $ 1,859,416 $ 1,964,365 $ 3,787,786 $ 3,848,288
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Provision for loan losses 191,250 34,500 382,500 135,000
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Net interest income after provision for
Loan losses $ 1,668,166 $ 1,929,865 $ 3,405,286 $ 3,713,288
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Total noninterest income 225,188 208,169 454,685 397,460
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Total noninterest expenses 1,163,486 1,029,313 2,332,700 2,060,716
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Income before income tax expenses $ 729,868 $ 1,108,721 $ 1,527,271 $ 2,050,032
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Income tax expenses 225,270 418,680 503,698 778,967
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Net Income $ 504,598 $ 690,041 $ 1,023,573 $ 1,271,065
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SELECTED FINANCIAL DATA
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<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Basic Earnings per share 0.32 0.42 0.64 0.77
Dilutive Earnings per share 0.31 0.42 0.63 0.75
Net interest margin 3.03 3.62 3.08 3.66
Return on average assets 0.79% 1.22% 0.80% 1.16%
Return on average equity 7.77% 10.88% 7.90% 10.03%
At June 30
Total non-performing assets as a percentage
of total assets 0.71% 0.52%
Stockholders' equity as a % of total assets 10.30% 10.64%
Book value per share $15.21 $14.15
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