NE Indiana Bancorp announces earnings

Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, today announced net income for the nine months ended September 30, 2022 was $5.0 million, or $4.17 per diluted common share, compared to net income of $5.8 million, or $4.80 per diluted common share for the nine months ended September 30, 2021. The current nine months earnings equate to an annualized ROA of 1.58% and an annualized ROE of 14.94% compared to an annualized ROA of 1.89% and an annualized ROE of 16.23% for the nine months ended September 30, 2021.

Net income for the third quarter ended September 30, 2022 was $1.6 million, or $1.35 per diluted common share, compared to net income of $1.9 million, or $1.62 per diluted common share for the third quarter ended September 30, 2021. The current quarter earnings equate to an annualized return on average assets (ROA) of 1.53% and an annualized return on average equity (ROE) of 15.09% compared to an annualized ROA of 1.88% and an annualized ROE of 15.90% for the third quarter ended September 30, 2021.

The declines in net income are primarily related to a reduction in gain on sale of mortgage loans of $1.0 million for the nine months ended 2022 compared to the same period in 2021 and a reduction of $218,000 for the current quarter 2022 compared to the same period in 2021. Mortgage production declined during 2022 compared to the first nine months 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 $490,000 for the nine months ended 2022 compared to the same period in 2021.

Total Assets increased $11.8 million to $429.4 million at September 30, 2022 compared to $417.7 million at December 31, 2021. This increase was primarily due to net loans increasing $30.5 million, or 14.8% on an annualized basis, to $304.7 million as of September 30, 2022 compared to $274.3 million as of December 31, 2021. This increase was partially reduced by a $13.8 million reduction in the market value of the investment portfolio due to the volatility of interest rates during 2022. Total deposits increased $14.8 million, or 5.8% on an annualized basis to $356.7 million at September 30, 2022 compared to $341.9 million at December 31, 2021. Stockholder’s equity decreased $6.8 million to $42.0 million at September 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 $10.8 million in the first nine months of 2022 due to unrealized losses in the investment portfolio. The book value of NIDB’s stock was $34.85 per common share and tangible common equity ratio was 9.78% as of September 30, 2022.

Michael S. Zahn, President and CEO, commented “We are having another strong year in 2022. Our focus on the well-being of our clients and our employees should continue to promote our communities and enhance shareholder value. We continue to see strong loan demand in this ever-changing interest 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 six full-service Indiana offices in Huntington (2), Warsaw (2) 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.