Wednesday, August 4th, 2021

NE Indiana Bancorp announces earnings

Posted: Friday, February 5, 2021

Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced earnings increased $914,000 or 19.5% to $5.6 million ($4.65 per diluted common share) for the full year 2020 when compared to full year 2019 earnings of $4.7 million ($3.91 per diluted common share). 2020 annual earnings represent the highest earnings level ever recorded for the Company. The full year 2020 earnings equate to a return on average assets of 1.44% and a return on average equity of 12.63% compared to an ROA of 1.33% and an ROE of 11.76% for the full year 2019.

Total assets increased $37.4 million or 10.6% to $391.3 million at December 31, 2020 compared to December 31, 2019 assets of $353.9 million. Total net loans increased $10.7 million or 4.2% to $264.2 million at December 31, 2020 from $253.5 million at December 31, 2019. Total deposits increased $44.7 million or 17.7% to $297.0 million at December 31, 2020 from $252.3 million at December 31, 2019. Total borrowings decreased $11.4 million or 19.9% to $45.8 million at December 31, 2020 compared to December 31, 2019 borrowings of $57.2 million.

The company paid out cash dividends of $2.5 million to shareholders during the year ended December 31, 2020 including roughly $1.2 million from a Special Cash Dividend ($1.00 per common share) that was paid to shareholders in December 2020 for the 6th year in a row of special cash dividends. The book value of NIDB stock was $37.73 per common share as of December 31, 2020. The company’s stock closed at $40.00 per common share on December 31, 2020.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, “2020 was a challenging year for everyone. I’m pleased with how our team stepped up to serve our customers and our communities.”  Zahn continues, “FFSB was able to achieve record earnings while helping commercial customers secure much needed relief and homeowners obtain low interest rate mortgages.”

First Federal Savings Bank was a source of strength to small business clients and non-profits in Northeast Indiana during 2020. The bank participated in the SBA’s Paycheck Protection Program (PPP) and helped over 400 clients receive roughly $40.0 million in PPP funding. We have also begun helping clients navigate the second round of the PPP program for first and second draw requests.

First Federal Savings Bank had record 1-4 family mortgage production of $92.5 million for the full year 2020. This was an increase of $56.8 million or 159.1% compared to 1-4 family mortgage production of $35.7 million for the full year 2019. These efforts help our retail clients through lower monthly payments and lower interest over the life of their mortgage loans. We anticipate mortgage production to remain at elevated levels at least over the next three months if not longer.

The company also announced quarterly earnings for the three months ended December 31, 2020 increased by $331,000 or 28.9% to $1.5 million ($1.23 per diluted common share) when compared to earnings for the three months ended December 31, 2019 of $1.1 million ($0.96 per diluted common shares). We also accrued $550,000 in pension expense during the quarter ended December 31, 2020 as we prepare to transition our frozen multi-employer defined benefit pension plan to a qualified successor plan during the first quarter of 2021. Earnings would have been roughly $410,000 higher, net of taxes, without this non-recurring entry. The current quarter’s earnings equate to an ROA of 1.49% and an ROE of 12.90% compared to an ROA of 1.28% and an ROE of 11.05% for the prior year quarter ended December 31, 2019.