Monday, August 10th, 2020

NE Indiana Bancorp announces record year

Posted: Friday, July 17, 2020

Northeast Indiana Bancorp, Inc., the parent company of First Federal Savings Bank, today announced net income for the six months ended June 30, 2020 increased by $298,000 or 13.7% to $2.48 million ($2.06 per diluted common share) when compared to net income of $2.18 million ($1.82 per diluted common share) for the six months ended June 30, 2019. The current six months earnings equate to an annualized ROA of 1.31% and a ROE of 11.58% compared to an annualized ROA of 1.25% and an annualized ROE of 11.32% for the six months ended June 30, 2019. The current earnings level represents Record net income for any six-month period ended June 30 in the company’s history.

Net income also increased by $323,000 or 28.9% to $1.44 million ($1.20 per diluted common share) for the company’s second quarter ended June 30, 2020 when compared to net income of $1.12 million ($0.94 per diluted common share) for the second quarter ended June 30, 2019. The current three months earnings equate to an annualized return on average assets (ROA) of 1.44% and a return on average equity (ROE) of 13.24% compared to an annualized ROA of 1.26% and a ROE of 11.45% for the three months ended June 30, 2019. The current quarterly earnings level represents Record net income for any quarterly period in the company’s history.

Total Assets increased $51.2 million or 14.5% to $405.1 million at June 30, 2020 compared to $353.9 million at December 31, 2019. Net loans increased $23.2 million or 9.1% to $276.6 million at June 30, 2020 compared to $253.5 million at December 31, 2019. Total deposits increased $48.9 million or 19.4% to $301.2 million at June 30, 2020 compared to $252.3 million at December 31, 2019. Shareholder’s equity increased $2.9 million or 6.9% to $44.2 million at June 30, 2020 compared to $41.3 million at December 31, 2019. The book value of NIDB’s stock was $36.49 per common share as of June 30, 2020. The number of outstanding common shares was 1,210,327 as of the same date. The last reported trade of the stock on July 13, 2020 was $32.00 per common share.

First Federal Savings Bank supported small business clients and non-profits in Northeast Indiana, utilizing the SBA’s Paycheck Protection Program (“PPP”), during the quarter ended June 30, 2020. Those efforts resulted in 400 small business or non-profit clients receiving $39.2 million in PPP funding. These efforts helped to support or retain 6,000 jobs in the communities we serve.

First Federal Savings Bank also had record 1-4 family mortgage production during the quarter ended June 30, 2020. We originated mortgage loans in the amount of $33.3 million in total for our retail clients which should help households with lower payments or lower interest over the life of their mortgage loans. We anticipate mortgage production continuing to remain at these elevated levels at least over the next three months if not longer.

Michael S. Zahn, president and CEO, commented “in addition to our record financial performance, I’m especially proud of our team’s efforts to serve those in need in these unprecedented times. As an essential business, we never shut down or slowed down over the past few months. By providing small businesses and non-profits a financial lifeline through the Paycheck Protection Program and working with homeowners to ease their mortgage burdens, First Federal Savings Bank has shown the importance of Community Banking.”