First Fed announces earnings for third quarter

Northeast Indiana Bancorp, the parent company of First Federal Savings Bank, has announced net income of $594,000 (48 cents per diluted common share) for the third quarter ending Sept. 30, 2012.

That's down from the net income of $631,000 (51 cents per diluted common share) for the third quarter of the previous year.

Net income for the nine months ending Sept. 30, 2012, however, increased to $1.94 million ($1.57 per diluted common share), compared to net income of $1.29 million ($1.05 per diluted common share) for the nine months ending Sept. 30, 2011.

Net interest income increased $107,000 to $6.80 million for the first nine months of 2012, compared to $6.69 million for the prior year's first nine months.

The company made a $1 million provision for loan loss for the nine months ending Sept. 30, 2012, compared to a $1.93 million provision for loan loss for the first nine months of 2011.

Noninterest income increased slightly to $1.97 million for the nine months ending Sept. 30, 2012, compared to $1.92 million for Sept. 30, 2011. Noninterest expense was relatively unchanged at $5.14 million for the nine months ending Sept. 30, 2012, compared to $5.15 million for the first nine months of 2011.

Total assets increased $18.38 million, or 7.07 percent, to $279.90 million at Sept. 30, 2012, compared to the Dec. 31, 2011, assets of $261.52 million.

Net loans decreased $12.68 million to $164.21 million at Sept. 30, 2012, compared to $176.89 million at Dec. 31, 2011.

Total securities increased $19.62 million, or 35.3 percent, to $75.22 million at Sept. 30, 2012, compared to $55.60 million at Dec. 31, 2011.

Total deposits increased sharply by $25.56 million, or 13.5 percent, to $215.40 million at Sept. 30, 2012, from $189.84 million at Dec. 31, 2011.

The increase in total deposits came in noninterest bearing DDA, NOW, MMDA and savings balances through First Federal's full service branches. These newly acquired lower-costing deposits were used to pay off maturing brokered deposits and wholesale borrowed funds.

Borrowed funds decreased $8.78 million, or 20.4 percent, to $34.18 million at Sept. 30, 2012, compared to $42.96 million at Dec. 31, 2011.