Northeast Indiana Bancorp in Huntington has announced that it would amend the third-quarter results it released Oct. 23, in order to account for an alleged fraud by a borrower.
Last month, $256 million-asset Northeast Indiana reported a profit of $481,000, down 28% from last year's third quarter. It did not disclose in its announcement late Tuesday the name of the borrower, nor did it release revised numbers, but chairman and chief executive officer Stephen E. Zahn said the alleged fraud would "materially and adversely" affect third-quarter results.
Northeast Indiana is the holding company for First Federal Savings Bank of Huntington. Chief financial officer Darrell Blocker said the company would restate its third-quarter earnings in a few days. He refused to comment further.
