A lower loan loss provision and a 10 percent increase in net interest income contributed to 1 percent earnings growth for the second quarter at Northeast Indiana Bancorp.
The Huntington-based parent company of First Federal Savings Bank reported second quarter earnings of $674,000, or 56 cents per share, which was up from $669,000, or 54 cents per share, for the same period last year.
A report on its financial performance said the loan loss provision fell to $150,000 from $300,000.
The company’s net interest income rose to about $2.3 million from about $2.1 million, and its non-interest income fell to about $689,000 from about $838,000.
“I am very pleased with our continued strong earnings,” Michael Zahn, chief executive officer, said in the report. “Margins continue to increase and asset quality is improving.
“I’m also personally pleased that we’ve been able to increase loan balances $8.8 million or 5.8% (11.6% annualized) through the first six months of 2014 in a very tough and competitive lending environment,” he said.