Monday, November 19th, 2018

NEIB announces sharp increase in earnings

Posted: Friday, July 13, 2018

Northeast Indiana Bancorp, Inc. (OTCQB:  NIDB), the parent company of First Federal Savings Bank, today announced net income for the six months ended June 30, 2018 increased by $540,000 or 34.0% to $2.13 million ($1.78 per diluted common share) when compared to net income of $1.59 million ($1.32 per diluted common share) for the six months ended June 30, 2017. The current six months earnings equate to an annualized ROA of 1.33% and a ROE of 11.91% compared to an annualized ROA of 1.05% and an annualized ROE of 9.20% for the six months ended June 30, 2017.

Commenting on the company’s performance, Michael Zahn, president and CEO, stated, “We continue to perform at a high level. I’m pleased with our steady growth, our margin expansion and our ability to manage overhead expense consistently.” Zahn continued, “The employees of First Federal Savings Bank are exceptional and the driving force behind our success.”

Net income also increased by $268,000 or 35.2% to $1.03 million ($0.86 per diluted common share) for the company’s second quarter ended June 30, 2018 when compared to net income of $760,000 ($0.63 per diluted common share) for the second quarter ended June 30, 2017. The current three months earnings equate to an annualized return on average assets (ROA) of 1.27% and a return on average equity (ROE) of 11.42% compared to an annualized ROA of 1.00% and a ROE of 8.68% for the three months ended June 30, 2017.

Net loans increased $2.8 million or 1.2% to $227.9 million at June 30, 2018 compared to $225.1 million at December 31, 2017. Total deposits increased $11.6 million or 5.5% to $223.8 million at June 30, 2018 compared to $212.2 million at December 31, 2017. Shareholder’s equity increased to $36.4 million at June 30, 2018 compared to $35.7 million at December 31, 2017. The company also repurchased 8,552 shares during the six months ended June 30, 2018. The book value of NIDB’s stock was $30.13 per common share as of June 30, 2018. The number of outstanding common shares was 1,206,327 as of the same date. The last reported trade of the stock on July 10, 2018 was $38.00 per common share.