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First Federal parent announces net income increases 6 percent

Northeast Indiana Bancorp, the parent company of First Federal Savings Bank, has announced that net income increased $52,000, or 6 percent, to $892,000 (74 cents per diluted common share) for the first quarter, which ended March 31.

That compares to net income of $840,000 (69 cents per diluted common share) for the first quarter of 2014.  

The current three months’ earnings equate to an annualized return on average assets (ROA) of 1.29 percent and a return on average equity (ROE) of 11.59 percent, compared to an ROA of 1.24 percent and an ROE of 11.91 percent for the same quarter in 2014.       

Credit quality continued to improve as total non-performing assets declined $2 million, or 31.9 percent, to $4.4 million as of March 31, compared to $6.4 million on Dec. 31, 2014.  This sharp decrease in non-performing assets improved the non-performing loan coverage ratio to 77.4 percent at the current quarter end, as compared to 54.4 percent at the prior quarter end. This enabled the company to take no provision for loan losses during the first three months of 2015.

Shareholders’ equity increased to $31.1 million at March 31, compared to $30.4 million at Dec. 31, 2014.  The book value of NIDB stock was $25.94 per common share as of March 31.  

The number of outstanding common shares was 1,199,879.  The last reported trade of the stock on April 10, 2015, was $26.35 per common share.