Exhibit 99.1
FOR IMMEDIATE RELEASE
JULY 20, 2004
FOR FURTHER INFORMATION
CONTACT DAVID A. BOCHNOWSKI
(219) 853-7575
NORTHWEST INDIANA BANCORP REPORTS
QUARTERLY EARNINGS INCREASE
MUNSTER, INDIANA - - The NorthWest Indiana Bancorp, the holding company
for Peoples Bank, reported earnings of $1.543 million, or $0.56 earnings per
basic and $0.55 earnings per diluted share for the quarter ended June 30, 2004,
compared to $1.466 million, or $0.53 earnings per basic and diluted share for
the same period a year earlier. The current quarter earnings represent a 5.3%
increase over the second quarter earnings reported during the prior year.
For the six months ended June 30, 2004 the Bancorp reported earnings
of $3.0 million, or $1.09 earnings per basic and $1.08 earnings per diluted
share compared to $2.9 million, or $1.06 earnings per basic and $1.05 earnings
per diluted share for the same period a year earlier. The earnings represent a
3.6% increase over the six month earnings reported during the prior year.
The current quarter earnings represent a return on average assets (ROA)
of 1.16% and return on average equity (ROE) of 14.57%, while ROA for the six
months was 1.16% and ROE was 14.27%.
David Bochnowski, Chairman and Chief Executive Officer, attributed the
Bank's performance to growth, strong net interest income, and asset quality.
During the six months total assets increased $30.2 million, or 5.9%, to
$539.0 million. Investment portfolio growth totaled $18.7 million, while loan
growth totaled $10.3 million. Asset growth was funded with core deposits and low
cost borrowings. Core accounts, which include checking, savings, money market
and sweep accounts increased $27.8 million or 11.7%. Balances in these accounts
represented 53.9% of the Bancorp's total funds at June 30, 2004.
"Peoples Bank has reported another quarter of solid financial
performance despite the moderate pace of our local economy," said David A.
Bochnowski.
"Our increase in net interest income picked up the slack created by the
decrease in loans sold to the secondary mortgage market. For the first six
months of the year, loan balances were up 2.5% with increases in commercial,
municipal, construction, residential, and consumer lending," Bochnowski noted.
Net interest income, the difference between interest income from loans
and investments and interest expense paid to fund providers, totaled $4.9
million for the current quarter, compared to $4.6 million for the quarter ended
June 30, 2003, an increase of 6.9%. For the six months ended June 30, 2004, net
interest income totaled $9.8 million compared to $9.2 million for the same
period a year earlier, an increase of 6.0%.
Despite the current general economic pressures, the Bancorp's
nonperforming loans to total assets remains at the manageable level of 0.33%.
The Bancorp's allowance for loan losses was .92% of total loans at June 30,
2004.
Noninterest income from banking activities is down 1.9% from the six
months ended June 30, 2003. Current year income has been impacted by a decrease
in gains from loan sales of $274 thousand, as the amount of loans sold during
the six months ended June 30, 2004 totaled $1.2 million compared to $10.3
million during the first six months of 2003. Despite the decrease in gains on
loan sales, noninterest income has remained relatively stable due to increased
income from fees and service charges, increased income from Trust operations,
and gains taken on the sales of securities as a result of the current interest
rate environment.
At June 30, 2004, shareholders' equity stood at $42.0 million or 7.8%
of total assets. The book value of the Bancorp's stock stood at $15.18 per
share.
The NorthWest Indiana Bancorp stock is traded on the OTC Bulletin Board
under NWIN. The Bancorp's subsidiary, Peoples Bank has offices in East Chicago,
Dyer, Hammond, Hobart, Merrillville, Munster, and Schererville, Indiana. The
Bank's website at www.ibankpeoples.com provides information on the Bank's
products, services, interest rates and investor relations.
"Forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995 may be included in this release. A variety of
factors could cause the Bancorp's actual results to differ from those expected
at the time of this release. These include, but are not limited to, changes in
economic conditions in the Bancorp's market area, changes in policies by
regulatory agencies, fluctuation in interest rates, demand for loans in the
Bancorp's market area and competition. Readers are urged to carefully review and
consider the various disclosures made by the Bancorp in its periodic reports
filed with the Securities and Exchange Commission.
-30-
NORTHWEST INDIANA BANCORP
Consolidated Balance Sheets
(Dollars in Thousands)
June 30, December 31,
2004 2003
(unaudited)
----------- -----------
Assets
Cash and cash equivalents ..................... $ 17,577 $ 16,070
Available-for-sale securities ................. 74,089 60,806
Held-to-maturity securities ................... 8,294 2,927
Federal Home Loan Bank Stock .................. 2,842 2,775
Loans held for sale ........................... 86 75
Loans receivable .............................. 420,141 409,808
Less: allowance for loan losses ............... (3,884) (3,787)
--------- ---------
Net loans receivable ...................... 416,257 406,021
Premises and equipment ........................ 14,018 14,419
Foreclosed real estate ........................ 114
Other assets .................................. 5,745 5,682
-------- ---------
Total assets ............................. $539,022 $ 508,775
======== =========
Liabilities and Stockholders' Equity
Deposits ...................................... $441,997 $ 421,640
Borrowed funds ................................ 50,695 40,895
Accrued expenses and other liabilities ........ 4,333 4,686
-------- ---------
Total liabilities ........................ 497,025 467,221
-------- ---------
Stockholders' Equity .......................... 41,997 41,554
-------- ---------
Total liabilities and stockholders'
equity ................................. $539,022 $ 508,775
======== =========
Consolidated Statements of Income
(Dollars in Thousands)
Three Months Ended Six Months Ended
June 30, June 30,
(unaudited) (unaudited)
2004 2003 2004 2003
------------- ---------- --------- ----------
Total interest income ............................. $ 6,581 $ 6,555 $13,131 $13,192
Total interest expense ............................ 1,643 1,936 3,354 3,970
------- ------- ------- -------
Net interest income ............................... 4,938 4,619 9,777 9,222
Provision for loan losses ......................... 75 140 135 260
------- ------- ------- -------
Net interest income after provision for loan
losses .......................................... 4,863 4,479 9,642 8,962
------- ------- ------- -------
Total noninterest income .......................... 747 806 1,521 1,550
Total noninterest expenses ........................ 3,252 2,947 6,541 5,870
------- ------- ------- -------
Income before income tax expenses ................. 2,358 2,338 4,622 4,642
Income tax expenses ............................... 815 872 1,607 1,733
------- ------- ------- -------
Net Income ........................................ $ 1,543 $ 1,466 $ 3,015 $ 2,909
======= ======= ======= =======
Selected Financial Data
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
------- ------ ------- --------
Basic earnings per share .......................... $ 0.56 $ 0.53 $ 1.09 $ 1.06
Net interest margin .... .......................... 3.95% 4.04% 3.98% 4.06%
Return on average assets .......................... 1.16% 1.21% 1.16% 1.22%
Return on average equity .......................... 14.57% 14.58% 14.27% 14.56%
At
June 30, June 30,
2004 2003
---------- ----------
Stockholders' equity as a percent of total
assets ........................................ 7.79% 8.13%
Book value per share ............................ $ 15.18 $ 14.72