SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549



                                   FORM 10-QSB

 [ X ]    QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
          SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1997

 [   ]    TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE
          EXCHANGE ACT

For the transition period from            to

                         Commission file number 0-26012 

                         NORTHEAST INDIANA BANCORP, INC.
        (Exact Name of Small Business Issuer as Specified in its Charter)

       Delaware                                       35-1948594  
(State or other jurisdiction of                     (IRS Employer
incorporation or organization)                     Identification No.)

648 North Jefferson Street, Huntington, IN              46750
(Address of principal executive offices)              (Zip Code)

                                 (219) 356-3311
                Issuer's telephone number, including area code:

Check  whether the Issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period  that the Issuer was  required  to file such  reports),  and (2) has been
subject to such requirements for the past 90 days. YES [X] NO [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:


            CLASS                                  OUTSTANDING AT JUNE 30, 1997
--------------------------------------------------------------------------------

Common Stock, par value $.01 per share                      1,762,727


         Transitional Small Business Disclosure Format:  YES [ ]  NO [X]
<PAGE>
                         NORTHEAST INDIANA BANCORP, INC.

                                      INDEX


        PART 1.     FINANCIAL INFORMATION (UNAUDITED)                           

        Item 1.     Consolidated Condensed Financial Statements

                    Consolidated Condensed Balance Sheets
                    June 30, 1997 and December 31, 1996                         

                    Consolidated Condensed Statements of Income
                    for the three and six months ended June 30, 1997 and 1996   

                    Consolidated Statement of Change in Shareholders' Equity
                    for the six months ended June 30, 1997                      

                    Consolidated Statements of Cash Flows for the three and six
                    months ended June 30, 1997 and 1996                         

                    Notes to Consolidated Condensed Financial Statements        


        Item 2.     Management's Discussion and Analysis of Financial
                    Condition and Results of Operations                         



        PART II.    OTHER INFORMATION                                           

                    Signature page                                              


<PAGE>
<TABLE>
<CAPTION>
                                 NORTHEAST INDIANA BANCORP, INC.
                              CONDENSED CONSOLIDATED BALANCE SHEETS
                               JUNE 30, 1997 AND DECEMBER 31, 1996
                                                                                              


                                                                    June 30         December 31
                                                                      1997             1996
                                                                -------------      -------------
                                                                  (Unaudited)
<S>                                                             <C>                <C>
ASSETS
Cash and due from financial institutions ..................     $   3,402,093      $   6,672,374
Interest earning deposits in financial institutions .......           100,000            100,000
Securities available for sale .............................        12,693,396         11,496,031
Securities held to maturity,  estimated market value
 of $789,000 and $891,236 at June 30, 1997
 and December 31, 1996, respectively
                                                                      789,334            892,036
Loans receivable, net of allowance for loan losses June 30,
1997 - $1,112,000  and December 31, 1996 - $1,027,300 .....       155,727,447        146,854,690
Other Real Estate Owned ...................................            44,910                  0
Accrued interest receivable ...............................           143,224            363,563
Premises and equipment ....................................         1,996,108          2,009,026
Other assets ..............................................         1,412,533          1,156,400
                                                                -------------      -------------

TOTAL ASSETS ..............................................     $ 176,309,045      $ 169,544,120
                                                                =============      =============

LIABILTIES AND SHAREHOLDERS' EQUITY
Liabilities
  Total deposits ..........................................        87,723,488         85,346,240
  Borrowed Funds ..........................................        61,000,000         56,000,000
  Accrued expenses and other liabilities ..................           811,998          1,668,764
                                                                -------------      -------------
    Total liabilities .....................................       149,535,486        143,015,004

Shareholders' equity
  Preferred stock, $.01 par value, authorized & unissued
     500,000 shares .......................................                 0                  0
  Common stock, $.01 par value: 4,000,000 shares 
          authorized; 2,182,125 shares issued .............            21,821             21,821
  Additional paid-in capital ..............................        21,289,828         21,253,458
  Retained earnings - substantially restricted ............        13,069,663         12,338,919
  Unearned ESOP compensation ..............................        (1,382,013)        (1,454,750)
  Unearned RRP compensation ...............................          (717,595)          (820,109)
  Net Unrealized appreciation (loss) on securities ........               713             15,799
  Treasury Stock  shares at cost:  419,398 at June 30, 1997
    and 371,539 at December 31, 1996 ......................        (5,508,858)        (4,826,022)
                                                                -------------      -------------
     Total shareholders' equity ...........................        26,773,559         26,529,116
                                                                -------------      -------------

         Total Liabilities and Shareholder's Equity .......     $ 176,309,045      $ 169,544,120
                                                                =============      =============

                          See accompanying notes to financial statements

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                     NORTHEAST INDIANA BANCORP, INC.
                                    CONSOLIDATED STATEMENTS OF INCOME
                                 Three and Six Months ended June 30, 1997


                                                     Three Months Ended            Six Months Ended
                                                           June 30                     June 30
                                                 -------------------------     -------------------------
                                                    1997           1996           1997           1996
                                                 ----------     ----------     ----------     ----------
                                                                       (Unaudited)
<S>                                              <C>            <C>            <C>            <C>
Interest income
  Loans, including fees ....................     $3,148,561     $2,641,844     $6,189,788     $5,163,166
  Taxable Securities .......................        219,854        171,201        439,724        269,399
  Non-taxable securities ...................          7,693          8,409         17,687         17,046
  Deposits with banks ......................         48,226         25,318         91,719         63,754
                                                 ----------     ----------     ----------     ----------
     Total interest income .................      3,424,334      2,846,772      6,738,918      5,513,365

Interest expense
  Deposits .................................      1,076,385        866,835      2,117,658      1,688,799
  Borrowed funds ...........................        806,346        596,210      1,577,361      1,122,874
                                                 ----------     ----------     ----------     ----------
     Total interest expense ................      1,882,731      1,463,045      3,695,019      2,811,673
                                                 ----------     ----------     ----------     ----------

Net interest income ........................      1,541,603      1,383,727      3,043,899      2,701,692

Provision for loan losses ..................         58,500         51,000        117,000        133,200
                                                 ----------     ----------     ----------     ----------

Net interest income after provision for loan
losses .....................................      1,483,103      1,332,727      2,926,899      2,568,492

Noninterest income
  Service charges on deposit accounts ......         59,378         38,761        110,065         74,120
  Loans servicing fees .....................         61,221         37,413         93,285         63,960
  Net realized gain on sale of securities ..              0              0              0              0
  Other ....................................         32,899         26,547         64,461         55,717
                                                 ----------     ----------     ----------     ----------
     Total noninterest income ..............        153,498        102,721        267,811        193,797

                              See accompanying notes to financial statements

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                     NORTHEAST INDIANA BANCORP, INC.
                                    CONSOLIDATED STATEMENTS OF INCOME
                                 Three and Six Months ended June 30, 1997
                                               (continued)


                                                     Three Months Ended            Six Months Ended
                                                           June 30                     June 30
                                                 -------------------------     -------------------------
                                                    1997           1996           1997           1996
                                                 ----------     ----------     ----------     ----------
                                                                       (Unaudited)
<S>                                              <C>            <C>            <C>            <C>
Noninterest expense
  Salaries and employee benefits ...........        356,163        318,759        739,165        651,487
  Occupancy ................................         85,569         66,037        155,636        131,986
  Data processing ..........................         78,924         66,915        151,824        141,456
  Insurance expense ........................         13,900         38,981         26,585         77,279
  Professional fees ........................         54,074         38,021         90,137         80,354
  Correspondent bank charges ...............         36,293         37,192         73,217         71,800
  Other expense ............................        141,995        111,191        280,093        213,626
                                                 ----------     ----------     ----------     ----------
     Total noninterest expense .............        766,918        677,096      1,516,657      1,367,988
                                                 ----------     ----------     ----------     ----------

Income before income taxes .................        869,683        758,352      1,678,053      1,394,301

Income tax expense .........................        348,054        295,336        662,684        534,038
                                                 ----------     ----------     ----------     ----------
Net income .................................     $  521,629     $  463,016     $1,015,369     $  860,263
                                                 ==========     ==========     ==========     ==========
Earnings per share subsequent
 to conversion .............................     $      .32     $      .24     $      .62     $      .44

                              See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                   NORTHEAST INDIANA BANCORP, INC.
                                      CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
                                                   Six months ended June 30, 1997

                                                             (Unaudited)
                                                                                                                          Net
                                                                                   Unearned          Unearned         Unrealized
                                                                                   Employee        Recognition       Appreciation
                                                 Additional                         Stock              and          on Securities
                                     Common        Paid-in         Retained        Ownership       Retention          Available-
                                      Stock        Capital         Earnings       Plan Shares      Plan Shares          For-Sale
                                      ------      ----------      ----------       ----------        ---------          -------
<S>                                   <C>         <C>             <C>              <C>               <C>                <C> 
Balance, January 1, 1997 ...          21,821      21,253,458      12,338,919       (1,454,750)        (820,109)          15,799

Dividends Paid $0.08 per
  share year to date .......            --              --          (284,625)            --               --               --   

Shares committed to be
 released under ESOP .......            --            36,370            --             72,737             --   

Purchase of 47,859
shares of Treasury Stock ...            --              --              --               --               --   


Purchase of RRP Stock ......            --              --              --               --               --               --   

Amortization of RRP
  Contributions ............            --              --              --               --            102,514             --   

Change in net unrealized
  appreciation on securities
  available-for-sale .......            --              --              --               --               --            (15,086)

Net Income June 30, 1997 ...            --              --         1,015,369             --               --               --   
                                      ------      ----------      ----------       ----------        ---------          -------
Balances, June 30, 1997 ....          21,821      21,289,828      13,069,663       (1,382,013)        (717,595)             713
                                      ======      ==========      ==========       ==========        =========          =======

                                           See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                         NORTHEAST INDIANA BANCORP, INC.
            CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
                         Six months ended June 30, 1997
                                  (continued)

                                                             (Unaudited)
                                                             Total         
                                       Treasury         Shareholders'     
                                         Stock              Equity         



<S>                                   <C>                 <C>
Balance, January 1, 1997              (4,826,022)         26,529,116     
                                                                         
Dividends Paid $0.08 per                                                 
  share year to date                           -            (284,625)     
                                                                         
Shares committed to be                                                   
 released under ESOP                           -             109,107     
                                                                         
Purchase of 47,859                                                       
shares of Treasury Stock                (682,836)           (682,836)     
                                                                         
                                                                         
Purchase of RRP Stock                          -                   -     
                                                                         
Amortization of RRP                                                      
  Contributions                                -             102,514     
                                                                         
Change in net unrealized                                                 
  appreciation on securities                                             
  available-for-sale                           -             (15,086)     
                                                                         
Net Income June 30, 1997                       -           1,015,369     
                                      ----------          ----------                                                                
Balances, June 30, 1997               (5,508,858)         26,773,559     
                                      ==========          ==========     
                                    
                 See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                        NORTHEAST INDIANA BANCORP, INC.
                                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    Six months ended June 30, 1997 and 1996
                        
                                                               Six Months Ended
                                                                                            June 30,
                                                                                    1997              1996
                                                                                ------------      ------------
                                                                                          (Unaudited)
<S>                                                                             <C>               <C>
Cash flows from operating activities
  Net income ..............................................................     $  1,015,369      $    860,263
  Adjustments to reconcile net income to net cash from operating activities
     Net (gain) loss on sale of premises and equipment ....................                0                 0
     Gain on sale of securities ...........................................                0                 0
     Gain on sale of foreclosed real estate ...............................                0                 0
     Provision for loan losses ............................................          117,000            97,295
     Depreciation and amortization, net of accretion ......................           69,075           108,147
     Amortization of ESOP - SOP 93-6 ......................................          109,107           129,186
     Amortization of RRP Contributions ....................................          102,514           102,514
     Net change in other assets ...........................................         (256,133)          (17,565)
     Net change in accrued interest receivable ............................          220,339           (84,381)
     Net change in accrued payable and other liabilities ..................         (851,917)          (37,027)
                                                                                ------------      ------------
         Total adjustments ................................................         (490,015)          268,331
                                                                                ------------      ------------
             Net cash from operating activities ...........................          525,354         1,128,594
Cash flows from investing activities
  Proceeds from maturities and principal repayments of securities
    held to maturity ......................................................          102,702            61,948
  Proceeds from maturities and principal repayments of securities
    available for sale ....................................................                0           600,000
  Proceeds from sale of securities available for sale .....................                0           600,000
  Purchases of securities available for sale ..............................       (1,018,753)       (7,423,133)
  Purchases of securities held to maturity ................................                0                 0
  Purchase of FHLB Stock ..................................................         (200,000)         (425,000)
  Net change interest-earning deposits in financial institutions ..........                0                 0
  Proceeds from sale of participation loans ...............................                0                 0
  Purchase of participation loans .........................................                0                 0
  Net change in loans .....................................................       (9,034,667)      (11,413,789)
  Expenditures on premises and equipment ..................................                0                 0
  Purchase of sale of premises, furniture and equipment ...................          (59,746)           (8,242)
   Proceeds from sales of foreclosed real estate ..........................                0                 0
                                                                                ------------      ------------
  Net cash from investing activities ......................................      (10,210,464)      (18,008,216)

                                 See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                        NORTHEAST INDIANA BANCORP, INC.
                                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    Six months ended June 30, 1997 and 1996
                                                  (continued)
                                                                    

                                                                                        Six Months Ended
                                                                                             June 30,
                                                                                     1997              1996
                                                                                ------------      ------------
                                                                                         (Unaudited)
<S>                                                                             <C>               <C>
Cash flows from financing activities
  Advances from FHLB ......................................................       28,000,000        31,495,044
  Repayment of FHLB advances ..............................................      (23,000,000)      (19,000,000)
  Cash dividends paid .....................................................         (284,625)         (318,284)
  Proceeds from issuance of stock, net of conversion costs and stock
    acquired by ESOP ......................................................                0                 0
  Increase (decrease) in advances from borrowers for taxes and insurance ..            5,042            (7,305)
  Repurchase stock ........................................................         (682,836)       (2,622,556)
  Net increase (decrease) in deposits .....................................        2,377,248         6,036,827
                                                                                ------------      ------------
       Net cash from financing activities .................................        6,414,829        15,583,726
                                                                                ------------      ------------
Net increase in cash and cash equivalents .................................       (3,270,281)       (1,295,896)
Cash and cash equivalents at beginning of period ..........................        6,672,374         4,672,341
                                                                                ------------      ------------
Cash and cash equivalents at end of period ................................     $  3,402,093      $  3,376,445
                                                                                ============      ============
  Cash paid during the period for:
     Interest .............................................................     $  3,700,717      $  2,792,488
     Income taxes .........................................................          670,308           598,446

                                 See accompanying notes to financial statements
</TABLE>
<PAGE>
                         NORTHEAST INDIANA BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                Three and Six months ended June 30, 1997 and 1996

NOTE 1 - BASIS OF PRESENTATION

The unaudited  information  for the three months and six ended June 30, 1997 and
1996 includes the results of operations of Northeast Indiana Bancorp,  Inc. (the
"Company") and its wholly-owned  subsidiary,  First Federal Savings Bank ("First
Federal" or the "Bank"). In the opinion of management,  the information reflects
all adjustments  (consisting only of normal recurring adjustments) necessary for
a fair  presentation  of the results of  operations  for the three and six month
periods reported but should not be considered as indicative of the results to be
expected for the full year.

NOTE 2 - CONVERSION

First  Federal  completed a conversion  from a mutual to a stock savings bank on
June  27,  1995.  Simultaneous  with the  conversion  was the  formation  of the
Company,  incorporated in the state of Delaware.  The initial issuance of shares
of common stock in the Company on June 27, 1995 was 2,182,125  shares at $10 per
share, resulting in net proceeds of $21,210,857, and was accomplished through an
offering to the Bank's eligible  account holders of record and the tax qualified
employee stock  ownership plan.  Costs  associated with the conversion and stock
offering  amounted to  $610,393,  and were  accounted  for as a reduction of the
proceeds from the issuance of common stock of the Company. The Company purchased
all common  shares  issued by the Bank.  This  transaction  was accounted for at
historical cost in a manner similar to the pooling of interests method.

Federal regulations require that, upon conversion from a mutual to stock form of
ownership,  a  "liquidation  account" be established by restricting a portion of
net worth for the benefit of eligible savings account holders who maintain their
savings  accounts  with the Bank  after  conversion.  In the  event of  complete
liquidation (and only in such event),  each savings account holder who continues
to maintain his savings account shall be entitled to receive a distribution from
the liquidation  account after payment to all creditors,  but before liquidation
distribution  with respect to capital stock. This account will be proportionally
reduced for any subsequent reduction in eligible holder's savings accounts.

Federal  regulations  impose  limitations  on the payment of dividends and other
capital  distributions,  including,  among  others,  that First  Federal may not
declare or pay cash  dividends on any of its stock if the effect  thereof  would
cause the  Bank's  capital  to be  reduced  below the  amount  required  for the
liquidation  account  or the  capital  requirements  imposed  by  the  Financial
Institutions  Reform  Recover and  Enforcement  Act  (FIRREA)  and the Office of
Thrift Supervision (the "OTS").

NOTE 3 - EMPLOYEE STOCK OWNERSHIP PLAN

The Company has  established an employee stock  ownership plan ("ESOP").  At the
date of conversion  described in Note 2, the ESOP  purchased  174,570  shares of
common stock of the Company which was financed by the Company and collateralized
by the shares  purchased.  The  borrowing  is payable in  semi-annual  principal
payments of $72,000 over a 12 year period plus  interest.  All  employees of the
Bank are  eligible  to  participate  in the ESOP  after  they  attain age 21 and
complete one year of service  during which they worked at least 1,000 hours.  As
of  January  1,  1997,   29,095  shares  have  been   distributed  to  the  plan
participants.
<PAGE>
NOTE 4 - EARNINGS PER SHARE

Earnings  per common  share have been  computed  by  dividing  net income by the
weighted  average number of shares of common stock  outstanding  for the periods
presented.  Earnings  per share for the three and six months ended June 30, 1996
was $0.24 and $0.44 per common  share.  Earnings  per common share for the three
and six months ended June 30, 1997 was $0.32 and $0.62.

NOTE 5 - COMMON STOCK CASH DIVIDENDS

On July 25, 1997 the Board of  Directors  of  Northeast  Indiana  Bancorp,  Inc.
announced a quarterly cash dividend of $.08 per share. The dividend will be paid
on August 18, 1997 to  shareholders  of record on August 4, 1997. The payment of
the cash dividend will reduce shareholders' equity (third quarter) by $141,018.

NOTE 6 - STOCK REPURCHASE PLAN

On July 18, 1997 Northeast Indiana Bancorp,  Inc. (the "Company")  announced its
intention  to  repurchase  10% of the  outstanding  shares in the open market as
Treasury  Shares  over the next twelve  months.  This  program  will total up to
176,273 shares.

NOTE 7 - REGULATORY CAPITAL REQUIREMENTS

Pursuant  to  FIRREA,  savings  institutions  must meet three  separate  minimum
capital-to-asset  requirements.  The following table summarizes,  as of June 30,
1997, the capital  requirements  for the Bank under FIRREA and the Bank's actual
capital ratios. As of June 30, 1997, the Bank substantially exceeded all current
regulatory capital standards.

<TABLE>
<CAPTION>

                                         Regulatory                  Actual
                                     Capital Requirement        Capital Requirement
                                     -------------------        -------------------
                                     Amount      Percent      Amount      Percent
                                     ------      -------      ------      -------
                                                 (Dollars in thousands)
<S>                                <C>             <C>        <C>          <C>

Risk-based capital .........       $ 8,663         8.0%       $23,271      21.49%
Core capital ...............         5,293         3.0%        22,368      12.68%
Tangible capital ...........         2,646         1.5%        22,368      12.68%

</TABLE>

NOTE 8 - RECLASSIFICATIONS

Certain  amounts  in  the  1996  consolidated  financial  statements  have  been
reclassified to conform to the 1997 presentation.

<PAGE>
                         NORTHEAST INDIANA BANCORP, INC.
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


GENERAL

Northeast  Indiana  Bancorp,  Inc.  (the  "Company")  was  formed as a  Delaware
corporation  in March,  1995, for the purpose of issuing common stock and owning
all the common  stock of First  Federal  Savings  Bank  ("First  Federal" or the
"Bank")  as a unitary  thrift  holding  company.  Prior to the  conversion,  the
Company did not engage in any material  operations  and at June 30, 1997, had no
significant  assets  other than the  investment  in the  capital  stock of First
Federal and cash and cash equivalents.

The  principal  business  of  savings  banks,   including  First  Federal,   has
historically consisted of attracting deposits from the general public and making
loans  secured by  residential  real estate.  The Bank's  earnings are primarily
dependent on net interest  income,  the difference  between  interest income and
interest  expense.  Interest  income is a function of the  balances of loans and
investments  outstanding  during the period and the yield earned on such assets.
Interest expense is the function of the balances of deposits and borrowings. The
Bank's earnings are also affected by provisions for loan losses,  service charge
and fee income,  and other  non-interest  income,  operating expenses and income
taxes.  Operating  expenses  consist  primarily  of  employee  compensation  and
benefits,  occupancy and equipment  expenses,  data processing,  federal deposit
insurance premiums and other general administrative expenses.

The most significant outside factors influencing the operations of First Federal
Savings Bank and other savings institutions include general economic conditions,
competition in the local market place and related  monetary and fiscal  policies
of agencies that regulate financial institutions. More specifically, the cost of
funds is  influenced  by interest  rates on  competing  investments  and general
market rates of interest.  Lending  activities  are influenced by the demand for
real estate financing and other types of loans, which in turn is affected by the
interest  rates at which such loans may be offered and other  factors  affecting
loan demand and funds availability.

FINANCIAL CONDITION

The Company's total assets increased $6.8 million or 4.0% from $169.5 million at
December  31, 1996 to $176.3  million at June 30,  1997.  This  increase was due
primarily to funds generated from increased  deposits growth of $2.4 million and
increased  borrowings of $5.0 so that new loans could be funded.  In addition to
asset  growth  through  the first  six  months  of 1997 we  purchased  2% of the
outstanding shares to fund Treasury Stock which reduced our capital.

The Bank's cash and cash equivalents decreased $3.3 million from $6.7 million at
December  31,  1996 to $3.4  million at June 30,  1997.  This  decrease  was due
primarily from the funds being used to fund the net increase in loans.
<PAGE>
FINANCIAL CONDITION (Continued)

Net loans  receivable  increased  $8.8  million or 6.0% from  $146.9  million at
December  31, 1996 to $155.7  million at June 30,  1997.  The  increase in loans
during  the first six months of 1997 was  predominantly  in net  mortgage  loans
which  accounted  for  $4.9  million  of the  increase,  and also  consumer  and
commercial  products  increasing  because  of  the  generally  favorable  market
conditions.  Allowances  for loan  losses  increased  $58,500  through the three
months ended June 30, 1997. This increase was to provide a general  increase for
the higher loan amounts and the additional loans secured by non-residential real
estate,  commercial  and credit cards.  These  allowances of $1,112,000  include
specific  reserves  for loans or partial  loans  classified  as  doubtful in the
amount of $209,000.

INVESTMENTS

Securities  available-for-sale  increased  $1.2  million  from $11.5  million at
December 31, 1996 to $12.7  million at June 30, 1997.  This  increase was due to
the purchase of investments used to maintain our liquidity requirements.

RESULTS OF OPERATIONS

The Company  had net income of  $521,000 or $0.32 per share and $1.0  million or
$0.62 per share for the three and six months  ended June 30,  1997  compared  to
$463,000  or $0.24 per share and  $860,000  or $0.44 per share for the three and
six months ended June 30, 1996.

Net interest  income  increased to $1.5 million for the second  quarter and $3.7
million for the six months ended June 30, 1997 compared to $1.4 million and $2.7
million  for the three and six  months  ended  June 30,  1996.  Interest  income
increased $577,000 to $3.4 million from $2.8 million for the second quarter June
30,  1997 and June 30,  1996,  respectively.  For the  second  quarter  interest
expense  increased  $419,000 to $1.9  million  from $1.5 million for the quarter
ended June 30, 1997 and 1996, respectively. The increased expense for the period
was due to a combination of higher average balances in deposits and advances.

Provisions for loan losses  increased by $7,500 and decreased by $16,000 for the
three and six months ended June 30, 1997  compared to the same period ended June
30, 1996.

Non-interest  expense  increased  to $767,000 and $1.5 million for the three and
six months  ended June 30, 1997  compared to $677,000  and $1.4  million for the
corresponding  period in 1996.  This  represents  an  increase  of  $90,000  and
$148,000 for the three and six months  ended June 30, 1997.  The majority of the
increase was reflected in compensation  and benefits which showed an increase of
$37,000 to $356,000 and an increase of $87,000 to $739,000 for the three and six
months ended, respectively. The increased expense is due to providing for growth
in employment needed to sustain growth in the institution.

Income tax expense is up for the three and six months ended June 30, 1997 due to
higher taxable income compared to 1996.
<PAGE>
NON-PERFORMING ASSETS AND ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is established through a provision for loan losses
based on management's  quarterly asset  classification  review and evaluation of
the risk inherent in its loan  portfolio and changes in the nature and volume of
its loan activity.  Such  evaluation,  which considers among other matters,  the
estimated value of the underlying  collateral,  economic  conditions,  cash flow
analysis,  historical  loan loss  experience,  discussion  held with  delinquent
borrowers  and other  factors  that  warrant  recognition  in  providing  for an
adequate allowance for loan loss. As a result of this review process, management
recorded  provisions  for loan losses in the amount of $58,000 and  $117,000 for
the three and six months  ended June 30, 1997  compared to $51,000 and  $133,000
for the same periods  ended June 30, 1996.  While  management  believes  current
allowance  for loan loss is adequate to absorb  possible  losses,  we anticipate
growth  in our  loan  portfolio  and will  therefore,  continue  to add  through
additional  provisions  for loan losses to our allowance  accounts,  there is no
assurance that subsequent evaluations may require additional provisions for loan
losses.

The non-performing assets to total assets ratio is one indicator of the exposure
to credit risk.  Non-performing  assets of the Bank consist of the  non-accruing
loans, troubled debt restructuring and real estate owned which has been acquired
as a result of  foreclosure  or  insubstance  foreclosure.  The following  table
summarizes in thousands the various categories of non-performing assets:
<TABLE>
<CAPTION>
                                                              June 30   December 31
                                                               1997         1996
                                                               ----         ----
<S>                                                            <C>          <C>
Non-accruing loans ....................................        $652         $705
Accruing loans delinquent 90 days and more ............         --           --
Troubled debt restructuring ...........................         --           --
Foreclosed assets .....................................          48            8
                                                               ----         ----
   Total non-performing assets
                                                               $700         $713
                                                               ====         ====
   Total non-performing assets as a percentage
                                                               0.40%        0.42%
                                                               ====         ==== 
</TABLE>
Total  non-performing  assets  decreased  from  $713,000 to $700,000 or 0.40% of
total assets at June 30, 1997 from 0.42% of total assets at December 31, 1996.

The Bank is required to maintain specific amounts of regulatory capital pursuant
to  regulations  of the  Office  of  Thrift  Supervision  (OTS).  Those  capital
requirements  follow: a risk-based  capital  standard  expressed as a percent of
risk adjusted  assets,  a leverage ratio of core capital to total assets,  and a
tangible capital ratio expressed as a percent of total adjusted assets.  At June
30, 1997, the Bank exceeded all regulatory capital standards.
<PAGE>
NON-PERFORMING ASSETS AND ALLOWANCE FOR LOAN LOSSES (Continued)

At June 30, 1997,  the Bank's risk based  capital was $23.3 million or 21.49% of
risk adjusted assets which exceeds the $8.7 million and the 8.0% OTS requirement
by $14.6  million and 13.49%.  The Bank's core capital at June 30, 1997 is $22.4
million or 12.68% which exceeds the OTS requirement of $5.3 million and 3.00% by
$17.1 million and 9.68%.  The tangible  capital  requirement is $2.6 million and
1.50% which the Bank  exceeded by $19.8 million and 11.18% which is reflected by
June 30, 1997  tangible  capital  balance of $22.4 million and a 12.68% ratio of
tangible capital to assets.
 

LIQUIDITY AND CAPITAL RESOURCES

First Federal's primary sources of funds are deposits, FHLB advances,  principal
and interest payments of loans,  operations  income and short-term  investments.
Deposit flows and mortgage  payments are greatly  influenced by general interest
rates, economic conditions and competition.

Current OTS  regulations  require that First Federal  maintain cash and eligible
investments  in  an  amount  equal  to at  least  5% of  customer  accounts  and
short-term  borrowings to assure its ability to meet demands for withdrawals and
repayment  of  short-term  borrowings.  As of June  30,  1997,  First  Federal's
liquidity  ratio  was  5.42%,  which  is in  excess  of the  minimum  regulatory
requirements.

First  Federal  uses its  capital  resources  principally  to meet  its  ongoing
commitments  to fund  maturing  certificates  of deposit  and loan  commitments,
maintain its liquidity,  and meet operating expenses. As of June 30, 1997, First
Federal  had  commitments  to  originate  loans and to fund open lines of credit
totaling  $17.5  million.  First  Federal  considers  its  liquidity and capital
resources  to be  adequate  to meet its  foreseeable  short and long term needs.
First Federal  expects to be able to fund or refinance,  on a timely basis,  its
material commitments and long-term liabilities.

REGULATORY DEVELOPMENTS

As a result of the SAIF  recapitalization in September 1997 the FDIC has amended
its  regulation  concerning  the  insurance  premiums  payable  by  SAIF-insured
institutions. The FDIC has reduced the SAIF insurance premium to a range of 0 to
27 basis points per $100 of domestic  deposits,  effective  January 1, 1997. The
Bank qualifies for the minimum SAIF assessment.

Additionally, the FDIC has imposed a FICO assessment on SAIF-assessable deposits
for the first semi-annual  period of 1997 equal to 6.48 basis points per $100 of
domestic deposits,  as compared to a FICO assessment on BIF-assessable  deposits
for that same period equal to 1.30 basis points per $100 of domestic deposits.
<PAGE>
                                     PART II


ITEM 1 - LEGAL PROCEEDING

         The  Company  and First  Federal  are  involved  from time to time,  as
         plaintiff or defendant in various legal actions arising from the normal
         course  of  their  businesses.  While  the  ultimate  outcome  of these
         proceedings  cannot be predicted with  certainty,  it is the opinion of
         management that the resolution of these  proceedings  should not have a
         material   effect  on  the   Company's   results  of  operations  on  a
         consolidated basis.

ITEM 2 - CHANGES IN SECURITIES
         None

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
         None

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDER

          (a) The Annual Meeting of  Shareholders  ("the  meeting") of Northeast
              Indiana  Bancorp,  Inc.  was held on April 23,  1997.  The matters
              approved  by  shareholders  at the meeting and the number of votes
              cast  for,   against  or  withheld  (as  well  as  the  number  of
              abstentions) as to each matter are set forth below:

               (1)  The  Election of the  following  directors  for a three year
                    term: Samuel Preston, Jr.

                    VOTES:                          FOR              WITHHELD
                    ------                          ---              --------
                                                 1,373,061            16,800

                    Randall C. Rider
                    VOTES:                          FOR              WITHHELD
                    ------                          ---              --------
                                                 1,373,386            16,975

               (2)  Ratification of Crowe,  Chizek and Company,  LLP as auditors
                    for the year ending December 31, 1997

                    VOTES:          FOR         AGAINST        ABSTAIN
                    ------          ---         -------        -------
                                 1,385,666       1,525          3,170


ITEM 5 - OTHER INFORMATION
         None

<PAGE>
                                PART II CONTINUED

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
         (a)   Exhibits
               None

         (b)   Reports on Form 8-K

               (1)  April 17,  1997,  Press  Release  announcing  First  Quarter
               Earnings
               (2) April 24, 1997,  Press Release  announcing  Cash Dividend and
               Second Annual Shareholder's Meeting
               (3)  July 16,  1997,  Press  Release  announcing  Second  Quarter
               Earnings
               (4) July 18, 1997,  Press  Release  announcing  Stock  Repurchase
               Program 
               (5)  July  25,  1997  Press  Release  announcing  Quarterly  Cash
               Dividend
<PAGE>


                                   SIGNATURES


              Pursuant to the  requirements  of the  Securities  Exchange Act of
              1934 the  Registrant  has duly  caused this Report to be signed on
              its behalf by the undersigned thereunto duly authorized.


                                             NORTHEAST INDIANA BANCORP, INC.


Date: August 13, 1997                        By: /S/ STEPHEN E. ZAHN
                                                 -------------------
                                                 Stephen E. Zahn
                                                 President and Chief
                                                 Executive Officer
                                                 (Duly Authorized Officer)


Date: August 13, 1997                        By: /S/ DARRELL E. BLOCKER
                                                 ----------------------
                                                 Darrell E. Blocker
                                                 Senior Vice President and
                                                 Chief Financial Officer
                                                 (Principal Financial Officer)