Thursday, August 22nd, 2019

NE Indiana Bancorp announces record earnings

Posted: Friday, February 1, 2019

Northeast Indiana Bancorp, Inc., (OTCQB:  NIDB), the parent company of First Federal Savings Bank, today announced earnings increased $754,000 or 22.1% to $4.2 million ($3.49 per diluted common share) for the full year 2018 when compared to full year 2017 earnings of $3.4 million ($2.84 per diluted common share). 2018 annual earnings represent the highest earnings level ever recorded for the Company. The full year 2018 earnings equates to a return on average assets of 1.28% and a return on average equity of 11.48% compared to an ROA of 1.12% and an ROE of 9.66% for the full year 2017.

Total assets increased $20.0 million or 6.4% to $334.2 million at December 31, 2018 compared to December 31, 2017 assets of $314.2 million.  Total net loans increased $15.0 million or 6.6% to $240.1 million at December 31, 2018 from $225.1 million at December 31, 2017.  Total deposits increased $21.2 million or 10.0% to $233.4 million at December 31, 2018 from $212.2 million at December 31, 2017.

The company also announced quarterly earnings for the three months ended December 31, 2018 increased by $497,000 or 97.8% to $1.0 million ($0.84 per diluted common share) when compared to earnings for the three months ended December 31, 2017 of $509,000 ($0.42 per diluted common shares). Fourth quarter 2017 earnings were negatively impacted by a $328,000 increase in tax expense from a non-cash impairment to our Deferred Tax Assets (“DTA’s”). The current quarter’s earnings equates to an ROA of 1.21% and an ROE of 10.90% compared to an ROA of 0.66% and an ROE of 5.58% for the prior year quarter ended December 31, 2017.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, “2018 was another record earnings year for First Federal Savings Bank. We’ve maintained our consistent loan and deposit growth while continuing to invest in the talent and technology that we need for the future. For the fourth year in a row, we have rewarded our shareholders with a special dividend in addition to raising our normal dividend for the 24th consecutive year.”

The company paid out cash dividends of $2.1 million to shareholders during the year ended December 31, 2018 including roughly $905,000 from a Special Cash Dividend ($0.75 per common share) that was paid to shareholders in December 2018 for the 4th year in a row of Special Cash Dividends. The book value of NIDB stock was $30.95 per common share as of December 31, 2018. The Company’s stock closed at $37.00 per common share on December 31, 2018, an increase of $1.85 or 5.3% compared to the closing stock price of $35.15 per common share on December 31, 2017.