NE Indiana Bancorp announces earnings

Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced net income of $1.78 million ($1.49 per diluted common share) for the first quarter ended March 31, 2022. This earnings level was a decrease of $112,000, or 5.9% when compared to earnings from the quarter ended March 31, 2021 of $1.89 million ($1.57 per diluted common share). The current three months earnings equate to an annualized return on average assets (ROA) of 1.70% and a return on average equity (ROE) of 15.07% compared to an ROA of 1.88% and an ROE of 16.47% for the prior year quarter ended March 31, 2021.

Total assets increased $1.8 million, or 1.8% on an annualized basis, to $419.5 million at March 31, 2022 compared to total assets of $417.7 million at December 31, 2021. Total loans increased $5.4 million, or 7.8% annualized, to $279.6 million at March 31, 2022 compared to total loans of $274.3 million at December 31, 2021. Total deposits increased $14.7 million, or 17.2% annualized, to $356.6 million at March 31, 2022 compared to $341.9 million at December 31, 2021.

Shareholders’ equity decreased $3.4 million to $45.3 million at March 31, 2022 compared to $48.7 million at December 31, 2021. The decrease in shareholders’ equity was a result of accumulated other comprehensive income declining $4.8 million due to a reduction in the fair value of the investment portfolio due to increased market interest rates. The book value of NIDB stock declined $2.80 to $37.60 per common share as of March 31, 2022 compared to $40.40 at December 31, 2021. The number of outstanding common shares was 1,205,435 as of March 31, 2022. The last reported trade of the stock on April 11, 2022 was $46.60 per common share.

Net interest income increased $274,000 in the first quarter of 2022 compared to the same period in 2021. The increase was a result of an eight-basis point increase in net interest margin to 3.80% and an increase in average earning assets of $19.0 million for the first quarter of 2022 compared to the first quarter of 2021.

Non-interest income declined $323,000 in first quarter of 2022 compared to the same period in 2021. The decrease was a result of a decline of $387,000 in gain on sale of loans due to slower mortgage refinances in the first quarter of 2022. Non-interest expense increased $248,000 in the first quarter of 2022 compared to the first quarter of 2021. The increase was primarily due to a $280,000 increase in salaries and employee benefits due to fewer FAS 91 salary deferrals in the first quarter of 2022 without the PPP production and mortgage refinance business that was more prevalent in the first quarter of 2021.

Michael S. Zahn, president/CEO said, “We are very pleased with the start of 2022. We continue to see strong loan and deposit growth in our markets and believe we are well positioned for the increasing rate environment.”

Northeast Indiana Bancorp, Inc. is headquartered at 648 N. Jefferson Street, Huntington, Indiana. The company offers a full array of banking and financial brokerage services to its customers through its main office in Huntington and five full-service Indiana offices in Huntington (2), Warsaw and Fort Wayne (2). The Company is traded on the OTC Markets Group, Inc. (www.otcmarkets.com) utilizing the OTCQB platform under the symbol “NIDB.” Our web site address is www.firstfedindiana.bank.