NE Indiana Bancorp announce earnings

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, 2023, was $2.3 million, or $1.90 per diluted common share, compared to net income of $3.4 million, or $2.81 per diluted common share for the six months ended June 30, 2022. The current six months earnings equate to an annualized ROA of 1.00% and an annualized ROE of 10.46% compared to an annualized ROA of 1.61% and an annualized ROE of 14.96% for the six months ended June 30, 2022.

Net income for the second quarter ended June 30, 2023, was $1.1 million, or $0.93 per diluted common share, compared to net income of $1.6 million, or $1.33 per diluted common share for the second quarter ended June 30, 2022. The current quarter earnings equate to an annualized return on average assets (ROA) of 0.96% and an annualized return on average equity (ROE) of 10.16% compared to an annualized ROA of 1.52% and an annualized ROE of 14.81% for the second quarter June 30, 2022.

The declines in net income are primarily related to a decrease in net interest income and an increase in overhead expenses. Net Interest Income was down $500,000 through the first six months of 2023 compared to the same period in 2022. Payroll and employee benefit expenses increased $625,000 in 2023 compared to the same period in 2022. In addition, the gain on sale of mortgage loans decreased by $290,000 for the first six months of 2023 compared to the same period in 2022. Partially offsetting this decline was an increase in Non-Interest Operating Income of $225,000 for the first six months of 2023 compared to 2022.

Total Assets increased $30.1 million to $475.6 million at June 30, 2023 compared to $445.5 million at December 31, 2022. Net loans increased $26.9 million, or 16.9% on an annualized basis to $347.7 million at June 30, 2023 compared to $320.7 million at December 31, 2022. Total deposits increased $17.7 million, or 9.3% on an annualized basis to $383.9 million at June 30, 2023 compared to $366.8 million at December 31, 2022. Stockholder’s equity increased slightly to $44.1 million at June 30, 2023 compared to $43.1 million at December 31, 2022. The book value of NIDB’s stock was $36.42 per common share and tangible common equity ratio was 9.29% as of June 30, 2023.

Michael S. Zahn, president, and CEO commented “In a challenging banking environment, we continue to experience excellent growth. With the rapid increases in interest rates by the Federal Reserve to combat inflation, margins continue to be under pressure. We are in a positive position to navigate the uncertain interest rate waters that lie ahead. Our focus on the success of our customers while investing in our employees should continue to serve our communities and enhance shareholder value.”