NE Indiana Bancorp announces earnings

Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, announced net income for the six months ended June 30, 2022 was $3.4 million, or $2.81 per diluted common share, compared to net income of $3.8 million, or $3.19 per diluted common share for the six months ended June 30, 2021. The current six months earnings equate to an annualized ROA of 1.61% and an annualized ROE of 14.96% compared to an annualized ROA of 1.90% and an annualized ROE of 16.41% for the six months ended June 30, 2021.

Net income for the second quarter ended June 30, 2022 was $1.6 million, or $1.33 per diluted common share, compared to net income of $1.9 million, or $1.61 per diluted common share for the second quarter ended June 30, 2021. The current quarter earnings equate to an annualized return on average assets (ROA) of 1.52% and an annualized return on average equity (ROE) of 14.81% compared to an annualized ROA of 1.88% and an annualized ROE of 16.47% for the second quarter June 30, 2021.

The declines in net income are primarily related to a reduction in gain on sale of mortgage loans of $800,000 for the six months ended 2022 compared to the same period in 2021 and a reduction of $414,000 for the current quarter 2022 compared to the same period in 2021. Mortgage production slowed in the first half of 2022 compared to the first half of 2021 as interest rates increased quickly due to actions taken by the Federal Reserve to mitigate inflation. Partially offsetting this decline was an increase in net interest income of $506,000 for the six months ended 2022 compared to the same period in 2021 and an increase of $233,000 for the second quarter of 2022 compared to the second quarter of 2021.

Total Assets decreased $4.2 million to $413.4 million at June 30, 2022 compared to $417.7 million at December 31, 2021. This decrease was primarily due to a $12.1 million reduction in the market value of the investment portfolio due to the volatility of interest rates in the first half of 2022. Net loans increased $13.3 million, or 9.7% on an annualized basis to $287.6 million at June 30, 2022 compared to $274.3 million at December 31, 2021. Total deposits increased $15.5 million, or 9.1% on an annualized basis to $357.4 million at June 30, 2022 compared to $341.9 million at December 31, 2021. Stockholder’s equity decreased $6.7 million to $42.0 million at June 30, 2022 compared to $48.7 million at December 31, 2021. This decrease was a result of a decline in accumulated other comprehensive income by $9.4 million in the first half of 2022 due to unrealized losses in the investment portfolio. The book value of NIDB’s stock was $34.88 per common share and tangible common equity ratio was 10.17% as of June 30, 2022.

Michael S. Zahn, president and CEO, commented “I am very pleased with our performance in 2022. Our net interest income continues to grow as we maintain a consistent net interest margin with solid loan growth. Our focus on the well-being of our clients and our employees should continue to promote our communities and enhance shareholder value.”