NORTHEAST INDIANA BANCORP, INC. ANNOUNCES THIRD QUARTER 2023 EARNINGS

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HUNTINGTON, Ind., Oct. 26, 2023 /PRNewswire/ -- 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, 2023, was $3.5 million, or $1.46 per diluted common share, compared to net income of $5 million, or $2.08 per diluted common share for the nine months ended September 30, 2022.  The current nine months earnings equate to an annualized ROA of 1.01% and an annualized ROE of 10.72% compared to an annualized ROA of 1.58% and an annualized ROE of 14.94% for the nine months ended September 30, 2022.

(PRNewsfoto/Northeast Indiana Bancorp, Inc.)
(PRNewsfoto/Northeast Indiana Bancorp, Inc.)

Net income for the third quarter ended September 30, 2023, was $1.2 million, or $0.51 per diluted common share, compared to net income of $1.6 million, or $0.68 per diluted common share for the third quarter ended September 30, 2022.  The current quarter earnings equate to an annualized return on average assets (ROA) of 1.02% and an annualized return on average equity (ROE) of 11.16% compared to an annualized ROA of 1.53% and an annualized ROE of 15.09% for the third quarter September 30, 2022.

A decrease in net interest income and an increase in overhead expenses have been the primary contributing factors to the declines in net income. Net Interest Income was down $533,000 through the first nine months of 2023 compared to the same period in 2022. Payroll and employee benefit expenses increased $542,000 in 2023 compared to the same period in 2022.  Provision for loan loss expense was up $270,000 year-to-date in 2023 compared to the first nine months of 2022.  The Company continues to evaluate allowance for credit loss levels given the current year's loan growth and performance in this first year of adopting the new CECL accounting standard.  In addition, the gain on sale of mortgage loans decreased by $286,000 for the first nine months of 2023 compared to the same period in 2022.

Total Assets increased $38.9 million to $484.4 million at September 30, 2023 compared to $445.5 million at December 31, 2022.  Net loans increased $38.6 million, or 16% on an annualized basis to $359.3 million at September 30, 2023 compared to $320.7 million at December 31, 2022.  Total deposits increased $24.7 million, or 9% on an annualized basis to $391.5 million at September 30, 2023 compared to $366.8 million at December 31, 2022.  Stockholder's equity increased to $43.8 million at September 30, 2023 compared to $43.1 million at December 31, 2022.  The book value of NIDB's stock was $18.08 per common share and tangible common equity ratio was 9.05% as of September 30, 2023.