First Fed parent says 2017 very strong year

Northeast Indiana Bancorp, Inc., (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced annual earnings for the full year 2017 of $3.4 million ($2.84 per diluted common share).

The 2017 annual earnings represent the third highest earnings level ever recorded for the company. The full year 2017 earnings equates to a return on average assets of 1.12 percent and a return on average equity of 9.66 percent compared to an ROA of 1.22 percent and an ROE of 10.58 percent for the full year 2016.

Total assets increased $13.2 million or 4.4 percent to $314.2 million at Dec. 31, 2017 compared to Dec. 31, 2016 assets of $301.0 million. Total net loans increased $28.4 million or 14.4 percent to $225.1 million at Dec. 31, 2017 from $196.8 million at Dec. 31, 2016. Total deposits decreased $6.3 million or 2.9 percent to $212.1 million at Dec. 31, 2017 from $218.4 million at Dec. 31, 2016. Nonperforming assets also declined by $2.4 million or 49.0 percent from $4.9 million at Dec. 31, 2016, compared to $2.5 million at Dec. 31, 2017.

The company also announced quarterly earnings for the three months ended Dec. 31, 2017 of $509,000 ($0.42 per diluted common share). Earnings for the quarter ended Dec. 31, 2016 were $825,000 ($0.69 per diluted common share). Fourth quarter 2017 earnings were negatively impacted by a $328,000 increase in tax expense from a non-cash impairment to a Deferred Tax Assets (“DTA’s”). The current quarter’s earnings equates to an ROA of 0.66 percent and an ROE of 5.58 percent compared to an ROA of 1.10 percent and an ROE of 9.56 percent for the prior year quarter ended Dec. 31, 2016.

Commenting on the financial results, First Federal Savings Bank President and CEO Michael S. Zahn stated, “I’m very pleased with our financial performance in 2017. Our earnings remain strong, our loan growth continues at a steady pace and our ability to reward our shareholders with increased and special dividends remained intact. Although the fourth quarter 2017 was negatively impacted by the impairment to our DTA’s, we are optimistic that tax reform will have a significantly positive impact on earnings moving forward.”

The company paid out cash dividends of $1.7 million to shareholders during the year ended Dec. 31, 2017 including roughly $607,000 from a Special Cash Dividend ($0.50 per common share) that was paid to shareholders in December 2017 for the third year in a row. The book value of NIDB stock was $29.40 per common share as of Dec. 31, 2017. The Company’s stock closed at $35.15 per common share on Dec. 31, 2017, an increase of $2.14 or 6.5 percent compared to the closing stock price of $33.01 per common share on Dec. 31, 2016.

Northeast Indiana Bancorp, Inc. is headquartered at 648 N. Jefferson St., Huntington. The company offers a full array of banking and financial brokerage services to its customers through its main office in Huntington and five full-service Indiana offices in Huntington, Warsaw and Fort Wayne. The company is traded on the OTC Markets Group, Inc. (www.otcmarkets.com) utilizing the OTCQB platform under the symbol “NIDB.” Its website address is www.firstfedindiana.bank.