Northeast Indiana Bancorp Showcases Strong Fourth Quarter Results
Northeast Indiana Bancorp Reports Strong Financial Performance
Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, recently announced robust financial results that underscore its commitment to growth and community service.
Quarterly Earnings Highlights
The company reported a net income of $972,000, or $0.41 per diluted share, for the fourth quarter, marking a significant increase from the $741,000 or $0.31 per diluted share reported in the same period last year. This translates to an impressive annualized return on average assets (ROA) of 0.74% and a return on average equity (ROE) of 8.01%, reflecting a commendable rise from a 0.60% ROA and a 6.75% ROE last year.
Annual Performance Overview
For the fiscal year, the Bancorp recorded a net income of $4.3 million, equating to $1.80 per diluted common share, compared to a net income of $4.3 million or $1.77 per share for the previous year. The annualized ROA stood at 0.84%, with an ROE of 9.13%, demonstrating the company's stable performance in a competitive market environment.
Increased Net Interest Income
Net interest income rose by $593,000, or 4.1%, showcasing the company's effective asset management strategies. However, the total provision for credit losses increased by $504,000, or 48%, mainly due to heightened specific reserves on existing loans, highlighting the company’s proactive approach towards credit risk management.
Asset and Deposit Growth
Northeast Indiana Bancorp experienced significant growth across its asset categories. Total assets surged by $23.6 million, or 4.7%, reaching $522.3 million. Loans also soared by $19.9 million, or 5.4%, totaling $390.6 million. Meanwhile, total deposits increased by $27.8 million, or 6.9%, to $428.9 million.
Property Achievements and Recognition
The Bancorp’s commitment to excellence has not gone unnoticed. First Federal Savings Bank was recently recognized in American Banker Magazine's Top 100 Community Banks for the 13th consecutive year, earning the 96th spot on the list. This distinction celebrates banks with total assets below $2 billion and public trading status, emphasizing the institution's commitment to high performance.
Dividend Champion Status
Northeast Indiana Bancorp has proudly maintained its position on the prestigious Dividend Champions List, a feat achieved by increasing its dividends to shareholders for 30 years in a row. This resilience in delivering consistent shareholder returns reflects the company’s strong commitment to shareholder value while ensuring community enrichment.
Future Outlook
Michael S. Zahn, President and CEO, expressed pride in the company's accomplishments, stating, "Our employees make a difference every day for the benefit of our customers and our communities. Our goal is to continue enhancing shareholder value and benefiting the communities we serve." This commitment lays a promising foundation for the future, as the Bancorp continues to aim even higher.
Frequently Asked Questions
What is Northeast Indiana Bancorp, Inc.'s ticker symbol?
The company's stock is traded under the symbol OTCQB: NIDB.
How much was the net income for the fourth quarter?
The net income for the fourth quarter was $972,000, or $0.41 per diluted share.
What was the annualized ROA for the fiscal year?
The annualized return on average assets (ROA) for the fiscal year was 0.84%.
How is Northeast Indiana Bancorp recognized in the banking community?
The company has been recognized as one of the top 100 community banks by American Banker Magazine for impressive performance.
What notable achievement did the company reach regarding dividends?
Northeast Indiana Bancorp has increased its dividends for 30 consecutive years, maintaining its Dividend Champions status.
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