Northeast Indiana Bancorp announces earnings
Posted: Friday, February 10, 2017
Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, announced annual earnings for the full year 2016 of $3.6 million ($2.99 per diluted common share). The 2016 annual earnings represent the second highest annual earnings level ever recorded for the Company. The 2015 annual earnings were our highest annual earnings level recorded at $3.8 million.
The Company sold securities during 2015 that generated gains of $407,000 that were not replicated during 2016. The full year 2016 earnings equates to a return on average assets of 1.22% and a return on average equity of 10.58% compared to an ROA of 1.37% and an ROE of 11.91% for the full year 2015.
The Company also announced quarterly earnings for the three months ended December 31, 2016 of $825,000 ($0.69 per diluted common share). Earnings for the quarter ended December 31, 2015 were $1.0 million. As stated previously, securities gains of $294,000 also impacted fourth quarter earnings during 2015. The current quarter’s earnings equates to an ROA of 1.10% and an ROE of 9.56% compared to an ROA of 1.42% and an ROE of 12.41% for the prior year quarter ended December 31, 2015.
Commenting on the financial results, First Federal Savings Bank president and CEO Michael S. Zahn stated, “We are very proud of our financial performance in 2016. Continued strong core earnings and controlled asset growth have allowed us to put together our three most profitable years in a row. This made it possible for us to reward our shareholders with the 22nd consecutive annual dividend increase and the second straight year of a special cash dividend.”
Total assets increased $16.8 million or 5.9% to $300.9 million at December 31, 2016 compared to December 31, 2015 assets of $284.1 million. Total net loans increased $14.5 million or 8.0% to $196.8 million at December 31, 2016 from $182.3 million at December 31, 2015. Total deposits increased $8.9 million or 4.2% to $218.4 million at December 31, 2016 from $209.5 million at December 31, 2015.
The Company paid out cash dividends of $1.6 million to shareholders during the year ended December 31, 2016. The book value of NIDB stock was $27.86 per common share as of December 31, 2016. The Company’s stock closed at $33.01 per common share on December 31, 2016, an increase of $3.01 or 10.0% compared to the closing stock price of $30.00 per common share on December 31, 2015.