Friday, November 24th, 2017

NEIB announce increased third quarter earnings

Posted: Friday, October 13, 2017

Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, announced net income increased $505,000 or 62.3% to $1.31 million ($1.10 per diluted common share) for the Company’s third quarter ended September 30, 2017 compared to net income of $810,000 ($0.67 per diluted common share) for the third quarter ended September 30, 2016. The current three months earnings were impacted by a negative Loan Loss Provision that increased earnings roughly $400,000, net of taxes. This entry was made possible due to two large commercial loan recoveries that were receipted during the quarter. Core earnings for the three months ended September 30, 2017 would have been roughly $915,000 without the negative Loan Loss Provision entry. The current three months earnings equates to an annualized return on average assets (ROA) of 1.74% and a return on average equity (ROE) of 14.70% compared to an annualized ROA of 1.09% and an ROE of 9.38% for the three months ended September 30, 2016.

Net income for the nine months ended September 30, 2017 increased $134,000 or 4.9% to $2.90 million ($2.41 per diluted common share), compared to net income of $2.77 million ($2.31 per diluted common share) for the nine months ended September 30, 2016. The current nine months earnings were also impacted by the negative Loan Loss Provision mentioned above.

Core earnings for the nine months ended September 30, 2017 would have been roughly $2.50 million without the negative Loan Loss Provision. The current nine months earnings equates to an annualized ROA of 1.28% and an ROE of 11.08% compared to an annualized ROA of 1.26% and an annualized ROE of 10.92% for the nine months ended September 30,2016.

Net Loans Receivable has increased $15.0 million or 7.6% to $211.8 million at September 30, 2017 compared to $196.8 million at December 31, 2016. Non-performing Assets have declined $2.1 million or 43.8% to $2.7 million at September 30, 2017 compared to $4.8 million at December 31, 2016. Shareholder's equity was $36.4 million at September 30, 2017 compared to $33.6 million at December 31, 2016. The book value of NIDB’s stock was $29.97 per common share as of September 30, 2017. The number of outstanding common shares was 1,214,879 as of the same date. The last reported trade of the stock on October 10, 2017 was $33.70 per common share.

Northeast Indiana Bancorp, Inc. is headquartered at 648 N. Jefferson Street, Huntington, Indiana. The company offers a full array of banking and financial brokerage services to its customers through its main office in Huntington and five full-service Indiana offices in Huntington (2), Warsaw and Fort Wayne (2). The Company is traded on the OTC Markets Group, Inc. (www.otcmarkets.com) utilizing the OTCQB platform under the symbol “NIDB.” Our web site address is www.firstfedindiana.bank.