Northeast Indiana Bancorp Q3 EPS Rises to $0.85 as Margin Widens

Northeast Indiana Bancorp, Inc., the parent company of First Federal Savings Bank, on October 28, 2026 announced net income of $1,991,000, or $0.85 per diluted common share, for the quarter ended September 30, 2026, compared with net income of $1,793,000, or $0.76 per diluted common share, for the quarter ended September 30, 2025, according to the company’s third-quarter 2026 earnings release. The Huntington, Indiana-based company said the current quarter’s earnings equate to an annualized return on average assets of 1.45% and a return on average equity of 14.11%, compared with 1.29% and 13.95% for the year-ago quarter. The unaudited condensed consolidated financial statements accompanying the announcement show second-quarter 2026 net income of $1,873,301 and diluted earnings per share of $0.80.

Net interest income increased $270,000 in the third quarter of 2026 compared with the same period in 2025, the company reported. The statements show net interest income of $5,013,028 versus $4,743,507 a year earlier, with total interest income of $7,802,808 compared with $8,055,361 and total interest expense of $2,789,780 compared with $3,311,854. Provision for credit loss expense was $120,000 for the quarter, recorded entirely for off-balance-sheet credit exposures with no provision for loans, compared with a reversal of credit loss expense of $35,000 in the third quarter of 2025.

Total non-interest income was $804,905, up from $659,542 in the year-ago quarter. The 2026 quarter included service charges on deposit accounts of $196,563, interchange fees of $207,234, a net gain on sale of loans of $143,349 and a $96,131 increase in the cash surrender value of life insurance, while the year-ago quarter included a $119,062 net loss on sales of available-for-sale securities. Total non-interest expense was $3,256,701 versus $3,281,790; salaries and employee benefits were $1,729,135 versus $1,747,045, occupancy expense was $477,940 versus $439,253, and data processing expense was $420,213 versus $385,504. Income before income taxes was $2,441,232, with income tax expense of $449,877, compared with $2,156,259 and $363,699 a year earlier.

The statements show net interest margin of 3.78% for the third quarter of 2026, compared with 3.53% in the year-ago quarter and 3.70% in the second quarter of 2026. The efficiency ratio was 55.98%, compared with 60.74% and 57.36% in those respective periods.

Nine-Month Results

For the nine months ended September 30, 2026, net income was $5.5 million, or $2.33 per diluted common share, compared with $4.5 million, or $1.89 per diluted common share, for the same period of 2025. The statements show nine-month net income of $5,463,197 versus $4,492,227. The company said the nine-month earnings equate to an annualized return on average assets of 1.31% and a return on average equity of 13.01%, versus 1.10% and 12.02% a year earlier. Nine-month net interest income was $14,734,770 versus $13,343,760, total provision for credit loss expense was $455,000 versus $785,017, and total non-interest expense was $9,848,080 versus $9,345,710.

Balance Sheet and Asset Quality

Total assets decreased $8.7 million, or 2.1% on an annualized basis, to $550.6 million at September 30, 2026, from $559.3 million at December 31, 2025. Total net loans decreased $19.3 million, or 6.0% on an annualized basis, to $406 million from $425.3 million at year-end; the statements show gross loans of $412,815,703 versus $431,869,990. Total deposits increased $3.7 million, or 1.2% on an annualized basis, to $459.5 million from $455.8 million, with non-interest bearing deposits of $64,979,874 compared with $51,188,798 at December 31, 2025. Borrowed funds were $30,500,000 versus $44,400,000 at year-end, and total cash and cash equivalents were $17,231,524 versus $7,079,904.

Shareholders’ equity increased $1.1 million to $56 million at September 30, 2026, from $54.9 million at December 31, 2025. Book value decreased $0.29 to $23.82 per common share from $24.11 at June 30, 2026. The tangible common equity ratio was 10.17%, and common shares outstanding were 2,349,909.

Non-performing assets totaled $13,649,679 at September 30, 2026, compared with $10,398,678 at June 30, 2026, and $7,611,701 at September 30, 2025. Non-accrual loans were $11,152,565, versus $7,893,034 and $5,082,212 at those respective dates, and troubled debt modifications were $2,497,114. Non-performing assets to total assets stood at 2.48%, versus 1.88% and 1.36%, and non-performing loans to gross loans at 3.31%, versus 2.48% and 1.76%. The allowance for credit losses was $6,834,287, equal to 50.07% of non-performing loans and 1.66% of gross loans. Third-quarter net charge-offs were $64,929, or 0.06% of average loans, compared with net recoveries of $12,514 a year earlier; nine-month net charge-offs were $119,138 versus $971,712, with the 2025 period including a $959,749 commercial charge-off.

Northeast Indiana Bancorp is headquartered at 648 N. Jefferson Street in Huntington and offers banking and financial brokerage services through nine full-service Indiana offices: three in Huntington, two in Warsaw, three in Fort Wayne and one in Roanoke. According to First Federal Savings Bank’s investor relations page, Northeast Indiana Bancorp was formed as a unitary savings and loan holding company in 1995 through a mutual-to-stock conversion and completed a charter conversion from a savings and loan holding company to a bank holding company in 2012.