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 full year of 2022 was $6.6 million, or $5.46 per diluted common share, compared to net income of $7.3 million, or $6.08 per diluted common share for the full year of 2021. The annual earnings of 2022 equate to a return on average assets (ROA) ratio of 1.54% and a return on average equity (ROE) ratio of 14.90% compared to ROA of 1.77% and ROE of 15.31% for the full year of 2021.

Net income for the fourth quarter ended December 31, 2022 was $1.6 million, or $1.29 per diluted common share, compared to net income of $1.5 million, or $1.28 per diluted common share for the fourth quarter ended December 31, 2021. The current quarter earnings equate to an annualized ROA of 1.42% and an annualized ROE of 14.84% compared to an annualized ROA of 1.44% and an annualized ROE of 12.54% for the fourth quarter ended December 31, 2021.

The declines in net income are primarily related to a reduction in gain on sale of mortgage loans of $1.4 million in 2022 compared to the same period in 2021. Mortgage production declined during 2022 compared to 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 $1.1 million in 2022 compared to the same period in 2021.

Total Assets increased $27.9 million to $445.5 million at December 31, 2022 compared to $417.7 million at December 31, 2021. This increase was primarily due to net loans increasing $46.5 million, or 17.0% in 2022, to $320.8 million as of December 31, 2022 compared to $274.3 million as of December 31, 2021. This increase was partially reduced by a $11.8 million reduction in the market value of the investment portfolio due to the volatility of interest rates during 2022. Total deposits increased $24.9 million, or 7.3% in 2022, to $366.8 million at December 31, 2022 compared to $341.9 million at December 31, 2021. Stockholder’s equity decreased $5.6 million to $43.1 million at December 31, 2022 compared to $48.7 million at December 31, 2021. This decrease was a result of a decline in accumulated other comprehensive income by $9.2 million in 2022 due to unrealized losses in the investment portfolio. The book value of NIDB’s stock was $35.80 per common share and tangible common equity ratio was 9.68% as of December 31, 2022.

In the current year, Northeast Indiana Bancorp and First Federal Savings Bank have been recognized for its performance. First Federal Savings Bank was named to American Banker Magazine’s Top 200 Community Banks for the 11th consecutive year for 2021. The magazine qualifies banks for this listing if they have less than $2 billion in total assets and are publicly traded. FFSB came in at #62 on this year’s list of the top 200 publicly traded community banks. This is a 16-spot improvement from #78 in 2020. The magazine ranked the institutions based on the profitability metric, Return on Average Equity, over a 3-year period. Only 12 banks from the state of Indiana made this elite list and First Federal Savings Bank ranked 4th in the State.

In addition, Northeast Indiana Bancorp, Inc., the holding company for First Federal Savings Bank, maintained its position on the Dividend Champions List. To achieve Champion status, a company must increase its dividend payments to its shareholders for 25 consecutive years. Northeast Indiana Bancorp is one of 141 companies in the United States to achieve this status and one of four companies from Indiana. With the latest dividend increase in the fourth quarter of 2022, Northeast Indiana Bancorp has increased dividends 28 years in a row.

Michael S. Zahn, President and CEO, commented “We are proud of our performance in 2022 and the recognitions we have received. “Our employees make a difference every day for the benefit of our customers and our communities. Our goal is to continue to enhance shareholder value and benefit the communities we serve.”