#United States #Huntington #NIDB #Northeast Indiana #First Federal

Northeast Indiana Bancorp Reports First Quarter Earnings for 2025

Northeast Indiana Bancorp, Inc., the parent company of First Federal Savings Bank, has unveiled its financial performance for the first quarter of 2025. This marks a noteworthy development for the institution as it showcases strong earnings growth compared to the same period last year. The company's net income totaled $1,059,000, translating to $0.44 per diluted common share. This is a remarkable increase from the $722,000, or $0.30 per share, earned during the first quarter of 2024.

Revenue and Financial Metrics

The earnings achieved in this quarter correspond to an annualized return on average assets (ROA) of 0.80%, and a return on average equity (ROE) of 8.71%. This is a growth when compared to the prior year's figures of 0.57% ROA and 6.26% ROE, reflecting a substantial improvement in operational efficiency and profitability.

The bank’s net interest income surged by $512,000 this quarter compared to Q1 of 2024, highlighting its strong interest-earning capabilities. However, the provision for credit loss expense increased to $620,000, up from $500,000 the previous year, indicating a cautious approach to managing potential credit risks.

Total non-interest income increased slightly, reaching $712,000, compared to $695,000 in the same period in 2024. The total non-interest expenses amounted to $3 million for Q1 2025, a minor decrease from $3.1 million in Q1 2024.

Asset and Loan Growth

Total assets for Northeast Indiana Bancorp rose by $20.3 million, or 15.6% on an annualized basis, reaching $542.6 million as of March 31, 2025, compared to $522.3 million at the end of December 2024. Total loans also saw an impressive increase of $23.1 million or 23.7% on an annualized basis, hitting $413.7 million in Q1 2025, up from $390.6 million in December 2024. Deposits increased by $13.1 million, or 12.2% annualized, indicating stronger customer confidence and engagement.

Non-Performing Loans

In terms of asset quality, non-performing loans expressed as a percentage of gross loans decreased to 1.24% as of March 31, 2025 from 1.84% the year prior. The allowance for credit losses on gross loans stood at 1.52% at the end of the quarter, showing a prudent reserve policy adopted by the bank to mitigate future risks.

Shareholder Value

Northeast Indiana Bancorp's shareholders also observed an increase in equity, which grew by $1 million to $49.3 million by the end of March 2025, compared to the previous year's ending value of $48.3 million. The book value per share rose from $20.14 to $20.57, indicating a positive trajectory in shareholder wealth.

The number of outstanding common shares has remained stable at 2,397,496 by March 31, 2025.

Headquartered at 648 N. Jefferson Street, Huntington, Indiana, Northeast Indiana Bancorp offers various banking and financial services through its main office and its seven full-service offices across Indiana. The company is listed on the OTC Markets Group under the symbol 'NIDB'.

Looking Ahead

As the banking landscape evolves, Northeast Indiana Bancorp plans to navigate economic changes with a focus on sustainable growth. The management is optimistic but remains vigilant about potential external factors affecting financial performance, such as interest rates and market competition. The upcoming quarters will likely be crucial to monitor the bank's ongoing performance, particularly in maintaining asset quality and driving operational efficiencies.