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NIBD announces annual and quarterly earnings

Posted: Thursday, February 8, 2018

Northeast Indiana Bancorp, Inc., (OTCQB:  NIDB), the parent company of First Federal Savings Bank, announced annual earnings for the full year 2017 of $3.4 million ($2.84 per diluted common share). Last year’s annual earnings represent the third highest earnings level ever recorded for the company. The full year 2017 earnings equates to a return on average assets of 1.12% and a return on average equity of 9.66% compared to an ROA of 1.22% and an ROE of 10.58% for the full year 2016.

Total assets increased $13.2 million or 4.4% to $314.2 million at December 31, 2017 compared to December 31, 2016 assets of $301.0 million. Total net loans increased $28.4 million or 14.4% to $225.1 million at December 31, 2017 from $196.8 million at December 31, 2016. Total deposits decreased $6.3 million or 2.9% to $212.1 million at December 31, 2017 from $218.4 million at December 31, 2016. Non-performing assets also declined by $2.4 million or 49.0% from $4.9 million at December 31, 2016 compared to $2.5 million at December 31, 2017.

The company also announced quarterly earnings for the three months ended December 31, 2017 of $509,000 ($0.42 per diluted common share). Earnings for the quarter ended December 31, 2016 were $825,000 ($0.69 per diluted common share). Fourth quarter 2017 earnings were negatively impacted by a $328,000 increase in tax expense from a non-cash impairment to our Deferred Tax Assets (“DTA’s”). The current quarter’s earnings equates to an ROA of 0.66% and an ROE of 5.58% compared to an ROA of 1.10% and an ROE of 9.56% for the prior year quarter ended December 31, 2016.

Commenting on the financial results, First Federal Savings Bank president and CEO Michael S. Zahn stated, “I’m very pleased with our financial performance in 2017. Our earnings remain strong, our loan growth continues at a steady pace and our ability to reward our shareholders with increased and special dividends remained intact. Although the fourth quarter 2017 was negatively impacted by the impairment to our DTA’s, we are optimistic that tax reform will have a significantly positive impact on earnings moving forward.”

The Company paid out cash dividends of $1.7 million to shareholders during the year ended December 31, 2017 including roughly $607,000 from a Special Cash Dividend ($0.50 per common share) that was paid to shareholders in December 2017 for the 3rd year in a row. The book value of NIDB stock was $29.40 per common share as of December 31, 2017. The company’s stock closed at $35.15 per common share on December 31, 2017, an increase of $2.14 or 6.5% compared to the closing stock price of $33.01 per common share on December 31, 2016.