Northeast Indiana Bancorp has reported a net income of $358,000 for the first quarter ended March 31, 2008, up 17.4% compared to net income of $305,000 for the comparable quarter of 2007.
The current quarter earnings equates to an annualized return on average assets (ROA) of 0.59% and a return on average equity (ROE) of 6.23% as compared to an ROA of 0.54% and an ROE of 5.10% for the same quarter of 2007.
Net interest income increased 25.6% to $1.5 million for the quarter compared to $1.2 million for the corresponding quarter in 2007. Likewise, the company’s net interest margin increased to 2.58% for the quarter as against 2.22% recorded during the 2007 period.
Stephen Zahn, chairman and CEO of Northeast Indiana Bancorp, said: We are very pleased with our improving net interest margins and increasing profitability trends.
Our internal models continue to show that our margins should continue to expand into 2008 based on our balance sheet structure and current market conditions. We feel this affirms our decision in years past and present to not engage in sub-prime lending.