NORTHEAST INDIANA BANCORP, INC. ANNOUNCES FOURTH QUARTER AND ANNUAL EARNINGS

HUNTINGTON, Ind., Jan. 28, 2025 /PRNewswire/ — Northeast Indiana Bancorp, Inc., NIDB, the parent company of First Federal Savings Bank, today announced net income of $972,000 ($0.41 per diluted common share) for the fourth quarter ended December 31, 2024 compared to net income of $741,000 ($0.31 per diluted common share) for the fourth quarter ended December 31, 2023. The current quarter earnings equate to an annualized return on average assets (ROA) of 0.74% and an annualized return on average equity (ROE) of 8.01% compared to an annualized ROA of 0.60% and an annualized ROE of 6.75% for the fourth quarter ending December 31, 2023.

Net income for the year ended December 31, 2024, was $4.3 million, or $1.80 per diluted common share, compared to net income of $4.3 million, or $1.77 per diluted common share for the year ended December 31, 2023. The current year earnings equate to an annualized ROA of 0.84% and an annualized ROE of 9.13% compared to an annualized ROA of 0.90% and an annualized ROE of 9.72% for the year ended December 31, 2023.

Net interest income increased by $593,000, or 4.1%, compared to the prior year. Total provision for credit losses increased by $504,000, or 48%, in 2024 as compared to 2023, primarily due to increased specific reserves on existing loans. Non-interest income increased 11.3% in 2024 as compared to the prior year. Non-interest expense grew by 4.5% in 2024.

Total assets increased $23.6 million, or 4.7%, to $522.3 million at December 31, 2024 compared to total assets of $498.7 million at December 31, 2023. Total loans increased $19.9 million, or 5.4% on an annualized basis, to $390.6 million at December 31, 2024 compared to total loans of $370.7 million at December 31, 2023. Total deposits increased $27.8 million, or 6.9% on an annualized basis, to $428.9 million at December 31, 2024 compared to $401.1 million at December 31, 2023.

Shareholders’ equity increased $1.9 million to $48.3 million at December 31, 2024 compared to $46.4 million at December 31, 2023. The book value of NIDB stock increased $0.99 to $20.14 per common share as of December 31, 2024, compared to $19.15 the previous year-end. The number of outstanding common shares was 2,397,496 as of December 31, 2024.

In the current year, Northeast Indiana Bancorp and First Federal Savings Bank have been recognized for its performance. First Federal Savings Bank was named to American Banker Magazine’s Top 100 Community Banks for the 13th consecutive year. The publication qualifies banks for this listing if they have less than $2 billion in total assets and are publicly traded. First Federal Savings Bank came in at #96 on this year’s list of the top 100 publicly traded community banks. The magazine ranked the institutions based on the profitability metric, Return on Average Equity, over a 3-year period. First Federal Savings Bank was one of only 3 banks from the state of Indiana to make this elite list.

In addition, Northeast Indiana Bancorp, Inc., the holding company for First Federal Savings Bank, maintained its position on the Dividend Champions List. To achieve Champion status, a company must increase its dividend payments to its shareholders for 25 consecutive years. Northeast Indiana Bancorp is one of 146 companies in the United States to achieve this status. With the latest dividend increase in the fourth quarter of 2024, Northeast Indiana Bancorp has increased dividends 30 years in a row.

Michael S. Zahn, President and CEO, commented, “We are proud of our performance in 2024 and the recognitions we have received. Our employees make a difference every day for the benefit of our customers and our communities. Our goal is to continue to enhance shareholder value and benefit the communities we serve.”

*All share data has been adjusted to reflect Northeast Indiana Bancorp, Inc.’s two-for-one stock split effective July 14, 2023.

Northeast Indiana Bancorp, Inc. is headquartered at 648 N. Jefferson Street, Huntington, Indiana. The company offers a full array of banking and financial brokerage services to its customers through its main office in Huntington and seven full-service Indiana offices in Huntington (2), Warsaw (2) and Fort Wayne (3). The Company is traded on the OTC Markets Group, Inc. (www.otcmarkets.com) utilizing the OTCQB platform under the symbol “NIDB”. Our web site address is www.firstfedindiana.bank.

This press release may contain forward-looking statements, which are based on management’s current expectations regarding economic, legislative and regulatory issues. Factors which may cause future results to vary materially include, but are not limited to, general economic conditions, changes in interest rates, loan demand, and competition. Additional factors include changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, regulatory and technological factors affecting each company’s operations, pricing, products and services.

NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	December 31,	December 31,
Balance Sheet (Unaudited)	2024	2023
		(Audited)
*Assets*
Non-interest earning cash and cash equivalents	$ 5,606,642	$ 4,304,296
Interest-earning cash and cash equivalents	4,599,896	1,166,180
Total cash and cash equivalents	10,206,538	5,470,476
Interest-earning time deposits	4,275,000	4,320,000
Securities available for sale	73,774,650	76,228,755
Securities held to maturity	12,617,624	12,754,763
Loans held for sale	71,200	–
Loans, gross	397,334,479	375,992,822
Allowance for credit losses	(6,771,171)	(5,335,305)
Loans, net	390,563,308	370,657,517
Accrued interest receivable	2,237,407	2,354,636
Premises and equipment	7,907,303	7,366,169
FHLB Stock	2,835,000	2,227,500
Investment in limited partnerships	628,334	928,334
Cash surrender value of life insurance	12,159,543	11,751,653
Other assets	5,047,868	4,624,206
Total Assets	$ 522,323,775	$ 498,684,009

*Liabilities and Stockholders’ Equity*
Non-interest bearing deposits	$ 48,168,488	$ 54,764,981
Interest bearing deposits	380,771,626	346,307,200
Borrowed funds	41,000,000	47,250,000
Accrued interest payable and other liabilities	4,106,965	3,941,438
Total Liabilities	474,047,079	452,263,619
Stockholders’ equity	48,276,696	46,420,390
Total Liabilities and Stockholders’ Equity	$ 522,323,775	$ 498,684,009


	Three months ended			Twelve months ended
	December 31,	September 30,	December 31,	December 31,	December 31,
Income Statement (Unaudited)	2024	2024	2023	2024	2023

*Net interest income*
Total interest income	$ 7,243,589	$ 7,178,589	$ 6,702,608	$ 28,234,218	$ 24,158,344
Total interest expense	3,275,092	3,369,314	2,952,000	13,067,903	9,584,701
Net interest income	3,968,497	3,809,275	3,750,608	15,166,315	14,573,643
*Provision for credit loss expense*
Loans	423,538	495,000	825,000	1,518,538	1,095,000
Off-balance sheet credit exposures	105,000	(45,000)	(45,000)	35,000	(45,000)
Total provision for credit loss expense	528,538	450,000	780,000	1,553,538	1,050,000
*Net interest income after provision for loan losses*	3,439,959	3,359,275	2,970,608	13,612,777	13,523,643

*Non-interest income*
Service charges on deposit accounts	176,311	174,619	184,623	704,644	734,612
Interchange fees	195,040	208,053	195,918	811,235	787,690
Loan servicing fees	69,887	63,117	108,432	340,874	414,958
Net gain on sale of loans	57,991	137,577	67,979	341,272	329,174
Brokerage fees	298	624	29,086	3,091	184,326
Increase in cash surrender value of life insurance	84,117	83,603	75,763	333,516	296,990
Other income	76,448	332,725	73,390	1,034,940	458,274
Total non-interest income	660,092	1,000,318	735,191	3,569,572	3,206,024

*Non-interest expense*
Salaries and employee benefits	1,529,333	1,652,277	1,443,480	6,459,098	6,416,398
Occupancy	365,647	390,467	340,005	1,474,751	1,381,140
Data processing	433,325	435,356	387,894	1,704,538	1,573,667
Deposit insurance premiums	57,000	75,000	54,000	294,000	205,500
Professional fees	167,477	179,392	207,204	622,157	634,672
Advertising and marketing fees	61,688	85,424	129,495	335,887	311,634
Correspondent bank charges	53,454	36,337	39,288	173,480	148,756
Other expense	458,329	273,585	335,295	1,406,067	1,258,685
Total non-interest expense	3,126,253	3,127,838	2,936,661	12,469,978	11,930,452

Income before income taxes	973,798	1,231,755	769,138	4,712,371	4,799,215
Income tax expense	1,341	214,410	27,866	406,812	539,525
Net income	$ 972,457	$ 1,017,345	$ 741,272	$ 4,305,559	$ 4,259,690

	Three months ended			Twelve months ended
	December 31,	September 30,	December 31,	December 31,	December 31,
Selected Financial Ratios and Other Financial Data (Unaudited)	2024	2024	2023	2024	2023

Average shares outstanding – basic	2,378,357	2,387,823	2,401,584	2,393,143	2,401,745
Average shares outstanding – diluted	2,378,357	2,387,823	2,401,584	2,393,143	2,401,773
Basic earnings per share	$ 0.41	$ 0.43	$ 0.31	$ 1.80	$ 1.77
Diluted earnings per share	$ 0.41	$ 0.43	$ 0.31	$ 1.80	$ 1.77
Net interest margin	3.13 %	3.06 %	3.16 %	3.06 %	3.20 %
Return on average assets	0.74 %	0.79 %	0.60 %	0.84 %	0.90 %
Return on average equity	8.01 %	8.46 %	6.75 %	9.13 %	9.72 %
Efficiency ratio	67.54 %	65.03 %	65.47 %	66.56 %	67.10 %

*Allowance for credit losses:*
Balance, beginning of period	$ 6,326,783	$ 5,885,564	$ 4,529,631	$ 5,335,305	$ 3,996,619
Charge-offs:
One-to-four family	–	39,022	–	39,022	27,466
Commercial real estate	–	–	–	–	–
Land/land development	–	–	–	–	–
Commercial	20,441	–	–	20,441	–
Consumer	21,194	52,872	68,491	168,743	198,755
Gross charge-offs	41,635	91,894	68,491	228,206	226,221
Recoveries:
One-to-four family	39,022	1,523	10,664	40,544	11,249
Commercial real estate	–	–	–	–	–
Land/land development	–	–	–	–	–
Commercial	–	–	200	–	3,930
Consumer	23,463	36,590	38,301	104,990	104,728
Gross recoveries	62,485	38,113	49,165	145,534	119,907
Net charge-offs (recoveries)	(20,850)	53,781	19,326	82,672	106,314
CECL adjustment	–	–	–	–	350,000
Provision for loan losses	423,538	495,000	825,000	1,518,538	1,095,000
Balance, end of period	$ 6,771,171	$ 6,326,783	$ 5,335,305	$ 6,771,171	$ 5,335,305

Net loan charge-offs (recoveries) to average loans	-0.02 %	0.06 %	0.02 %	0.02 %	0.03 %

	As of
	December 31,	September 30,	December 31,
*Non-performing assets*	2024	2024	2023
Loans:
Non-accrual	$ 5,031,555	$ 4,551,701	$ 6,415,623
Past 90 days or more and still accruing	–	–	–
Troubled debt modification	926,960	507,797	524,970
Total non-performing loans	5,958,515	5,059,498	6,940,593
Real estate owned	–	–	–
Other repossessed assets	–	–	–
Total non-performing assets	$ 5,958,515	$ 5,059,498	$ 6,940,593

Non-performing assets to total assets	1.14 %	0.97 %	1.39 %
Non-performing loans to gross loans	1.50 %	1.30 %	1.85 %
Allowance for loan losses to non-performing loans	113.64 %	125.05 %	76.87 %
Allowance for loan losses to gross loans	1.70 %	1.62 %	1.42 %

*Other financial ratios*
Tangible common equity	9.24 %	9.46 %	9.31 %
Book value per share	$ 20.14	$ 20.46	$ 19.15
Common shares outstanding	2,397,496	2,403,696	2,423,698

(1) Ratios for three-month periods are annualized
(2) All share data has been adjusted for the 2:1 stock split on July 14, 2023.