Thursday, December 3rd, 2020

NEI Bancorp announce record quarterly earnings

Posted: Friday, October 23, 2020

Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income increased $285,000 or 21.0% to $1.65 million ($1.37 per diluted common share) for the company’s third quarter ended September 30, 2020 compared to net income of $1.36 million ($1.14 per diluted common share) for the third quarter ended September 30, 2019.

The current three months earnings represent a new record for the company and equates to an annualized return on average assets (ROA) of 1.65% and a return on average equity (ROE) of 14.33%. This compares to an annualized ROA of 1.53% and an annualized ROE of 13.31% for the three months ended September 30, 2019.

Net income for the nine months ended September 30, 2020 increased $583,000 or 16.5% to $4.12 million ($3.43 per diluted common share), compared to net income of $3.54 million ($2.96 per diluted common share) for the nine months ended September 30, 2019. The current nine months earnings represent a new record for the company and equates to an annualized ROA of 1.43% and an annualized ROE of 12.54%. This compares to an annualized ROA of 1.34% and an annualized ROE of 12.01% for the nine months ended September 30, 2019.

First Federal Savings Bank has been 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. The business banking team is now helping clients maneuver PPP Forgiveness applications. We anticipate that process being completed during the fourth quarter of 2020 and into the first quarter of 2021.

First Federal Savings Bank had continued strong 1-4 family mortgage production during the quarter ended September 30, 2020. The bank originated mortgage loans in the amount of $24.6 million for the current quarter after record mortgage production of $33.3 million for the quarter ended June 30, 2020. 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 these elevated levels at least over the next three months if not longer.

First Federal Savings Bank has also worked with our borrowers on loan forbearance requests under the CARES Act. We initially executed forbearance requests on roughly $36.0 million (13% of loan portfolio) in loan balances for an initial three-month period during the quarter ended June 30, 2020. That figure declined significantly to roughly $8.0 million (3% of loan portfolio) that executed a second three-month forbearance request during the current quarter ended September 30, 2020. Management anticipates a high majority of these clients moving back to amortizing status during the quarter ended December 31, 2020.

Net Loans Receivable have increased $18.86 million or 7.44% to $272.32 million at September 30, 2020 compared to $253.46 million at December 31, 2019. Total deposits have increased $40.53 million or 16.10% to $292.81 million at September 30, 2020 compared to $252.28 million at December 31, 2019. Shareholder’s equity increased $4.26 million or 10.31% to $45.58 million at September 30, 2020 compared to $41.32 million at December 31, 2019. The book value of NIDB’s stock was $37.66 per common share as of September 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 October 13, 2020 was $33.50 per common share.