FOR IMMEDIATE RELEASE
November 20, 2000
FOR ADDITIONAL INFORMATION
CONTACT: DARRELL E. BLOCKER
SR VICE PRESIDENT, CFO
(219) 356-3311
NORTHEAST INDIANA BANCORP, INC.
REVISES Third QUARTER EARNINGS
HUNTINGTON, INDIANA, -- Northeast Indiana Bancorp, Inc. (NEIB), the parent
company of First Federal Savings Bank (Bank or First Federal), announced today a
net loss of $(14,000) (or $(0.01) 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. Net income as
previously released on October 23, 2000 for the third quarter ended September
30, 2000 was $481,000 ($0.30 per basic share). Due to alleged fraud with respect
to one of the Bank's commercial customers, and to record expenses for an
additional allocation to the Bank's Employee Stock Operation Plan (ESOP), the
Bank decreased its previously announced earnings by $495,000 ($0.31 per basic
share).
The Company provided an additional $700,000 provision to loan loss reserves
which has an approximate $423,000 after tax effect to net income during the
quarter ended September 30, 2000. An additional non-interest expense in the
amount of $155,000, or approximately $97,000 after tax effect, was also recorded
for an additional allocation to the ESOP.
Net income for the nine months ended September 30, 2000 was $1.0 million (or
$0.63 per basic share) compared to $1.9 million (or $1.19 per basic share) for
the nine month period ended September 30, 1999. Return on average equity for the
nine months ended September 30, 2000 was 5.15% compared to 10.19% for the
comparable period of 1999.
Shareholders' equity at September 30, 2000 was $26.5 million compared to $25.7
million at December 31, 1999. The end of period equity to assets ratio remains
at 10.25%. As of September 30, 2000, First Federal's risk based capital was
$25.0 million or 15.48% of risk adjusted assets, which exceeds the $13.0 million
and the 8.0% OTS requirement by $12.0 million and 7.48%. First Federal's core
capital at September 30, 2000 is $23.8 million or 9.21%, which exceeds the OTS
requirement of $10.3 million, and 4.00% by $13.5 million and 5.21%.
Cash dividends, which were announced October 25, 2000 in the amount of $0.11 per
share will be paid on November 22nd to shareholders of record as of November
8th, 2000. "Our Bank, due to its strong reserves continues to have net worth far
in excess of regulatory requirements. Furthermore, the Company anticipates
continuing its program of rewarding our shareholders with dividends and future
repurchases of stock." as stated by Steve Zahn, President and CEO. This will be
the 21st consecutive quarter of dividends paid to shareholders.
A determination by the Company's main operating subsidiary, First Federal, as to
the classification of its assets and the amount of its valuation allowances is
subject to review by the Office of Thrift Supervision, which may order the
establishment of additional general or specific reserve allowances.
Although management believes it uses the best information available to determine
the allowances, unforeseen market conditions or other unforeseen events could
result in adjustments and net earnings could be significantly affected if
circumstances differ substantially from the assumptions used in making the such
determination.
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".
