First Federal reports dip in net income

Northeast Indiana Bancorp, Inc., the parent company of First Federal Savings Bank, has announced net income of $547,000 (44 cents per diluted common share) for the first quarter of 2013, which ended March 31.

That's down from the net income of $694,000 (56 cents per diluted common share) for the first quarter of 2012.

The current three months earnings equate to an annualized return on average assets (ROA) of .82 percent and a return on average equity (ROE) of 7.79 percent, compared to an ROA of 1.07 percent and an ROE of 10.51percent for the same quarter of 2012.

"The prolonged low rate environment combined with high liquidity levels and weak lending is having an impact on our net interest margins," First Federal Savings Bank CEO Michael S. Zahn says.

"After seeing some lending traction late in the quarter, we are hopeful that we can carry that momentum into the second quarter as the economy continues to slowly heal. We are confident in our ability to manage through this environment in part due to our efficient management of noninterest expenses."

Shareholders' equity increased to $28.1 million at March 31, 2013, compared to $27.9 million at Dec. 31, 2012.

The book value of Northeast Indiana Bancorp stock was $22.64 per common share as of March 31, 2013. The number of outstanding common shares was 1,239,946.

The last reported trade of the stock on April 12, 2013, was $18 per common share.