Thursday, July 9th, 2020

NEIB has record quarterly, annual earnings

Posted: Friday, February 7, 2020

Northeast Indiana Bancorp, Inc., (OTCQB:  NIDB), the parent company of First Federal Savings Bank, announced earnings increased $519,000 or 12.4% to $4.7 million ($3.91 per diluted common share) for the full year 2019 when compared to full year 2018 earnings of $4.2 million ($3.49 per diluted common share). 2019 annual earnings represent the highest earnings level ever recorded for the company. The full year 2019 earnings equate to a return on average assets of 1.33% and a return on average equity of 11.76% compared to a ROA of 1.28% and a ROE of 11.48% for the full year 2018.

Total assets increased $19.7 million or 5.9% to $353.9 million at December 31, 2019 compared to December 31, 2018 assets of $334.2 million. Total net loans increased $13.4 million or 5.6% to $253.5 million at December 31, 2019 from $240.1 million at December 31, 2018. Total deposits increased $18.9 million or 8.1% to $252.3 million at December 31, 2019 from $233.4 million at December 31, 2018. Total borrowings decreased $2.5 million or 4.2% to $57.2 million at December 31, 2019 compared to December 31, 2018 borrowings of $59.7 million.

The company also announced quarterly earnings for the three months ended December 31, 2019 increased by $139,000 or 13.9% to $1.1 million ($0.96 per diluted common share) when compared to earnings for the three months ended December 31, 2018 of $1.0 million ($0.84 per diluted common shares). The current quarter’s earnings equate to an ROA of 1.28% and an ROE of 11.05% compared to an ROA of 1.21% and an ROE of 10.90% for the prior year quarter ended December 31, 2018.

Commenting on the financial results, First Federal Savings Bank president and CEO Michael S. Zahn stated, “I’m very pleased with our record financial performance in 2019. Embracing our role as a community bank has led to our success. In addition, for the 25th year in row, we were able to increase our dividend to our shareholders as well as provide them with a special dividend for the 5th consecutive year.”

The company paid out cash dividends of $2.1 million to shareholders during the year ended December 31, 2019 including roughly $905,000 from a special cash dividend ($0.75 per common share) that was paid to shareholders in December 2019 for the 5th year in a row of special cash dividends. The book value of NIDB stock was $34.25 per common share as of December 31, 2019. The company’s stock closed at $40.10 per common share on December 31, 2019, an increase of $3.10 or 8.4% compared to the closing stock price of $37.00 per common share on December 31, 2018.