First Federal reports increase in net income

Northeast Indiana Bancorp, the parent company of First Federal Savings Bank, has announced an increase in its net income from the second quarter of 2012 to the same period of 2013.

"We are pleased with our continued financial success," says CEO Michael S. Zahn.

"Margin pressure is still an issue, but we have been able to offset this challenge by controlling overhead and maintaining strong mortgage banking and SBA loan production.

"Our asset quality continues to improve as the economy stabilizes."

The company reported a net income of $669,000 (54 cents per diluted common share) for second quarter of 2013, which ended June 30.

That compares to net income of $656,000 (53 cents per diluted common share) for the second quarter ended June 30, 2012.

The current three months earnings of equates to an annualized return on average assets (ROA) of 0.99 percent and a return on average equity (ROE) of 9.41 percent, bank officials say.

That compares to an annualized ROA of 0.98 percent and an ROE of 9.76 percent for the three months ended June 30, 2012.

Net income for the six months ended June 30, 2013, was $1.2 million (98 cents per diluted common share) compared to net income of $1.3 million ($1.09 per diluted common share) for the six months ended June 30, 2012.

The current six months earnings equates to an annualized ROA of 0.91 percent and an ROE of 8.61 percent compared to an annualized ROA of 1.02 percent and an annualized ROE of 10.13 percent for the six months ended June 30, 2012.

Shareholder's equity was $27.6 million at June 30, 2013 compared to $27.9 million at Dec. 31, 2012.

The book value of NIDB's stock was $22.25 per common share as of June 30, 2013.

The number of outstanding common shares was 1,239,946 as of the same date.

The last reported trade of the stock on July 10, 2013, was $19 per common share.

This is an increase of $2.60, or 15.9 percent, over the last reported trade of the stock on Dec. 31, 2012, which was $16.40 per common share.