Exhibit 99.1
FOR IMMEDIATE RELEASE
October 21, 2005
FOR FURTHER INFORMATION
CONTACT DAVID A. BOCHNOWSKI
(219) 853-7575
NORTHWEST INDIANA BANCORP
REPORTS EARNINGS
Munster, Indiana — - NorthWest Indiana Bancorp, the holding company for Peoples Bank,
reported net income of $1.61 million, or $0.58 earnings per basic and $0.57 earnings per
diluted share for the quarter ended September 30, 2005, compared to net income of $1.63
million, or $0.59 earnings per basic and $0.58 earnings per diluted share for the same
period a year earlier. The current quarter net income represented a 1.4% decrease over the
third quarter net income reported during the prior year. In addition, for the quarter
ended September 30, 2005, the return on average assets (ROA) was 1.10% and return on
average equity (ROE) was 14.60%. The change in earnings for the quarter ended September
30, 2005, as compared to the same quarter of 2004, was affected by a gain on the sale of
loans in the third quarter of 2004. During the third quarter of 2004, the Bancorp
implemented a balance sheet restructuring strategy to reduce interest rate risk, which
resulted in the sale of $12.2 million of loans at a gain of $132,000.
For the nine months ended September 30, 2005, the Bancorp reported net income of $4.86
million, or $1.75 earnings per basic and $1.72 earnings per diluted share compared to $4.65
million, or $1.68 earnings per basic and $1.66 earnings per diluted share for the same
period a year earlier. The current nine month net income represented a 4.7% increase over
the nine month net income reported during the prior year. In addition, for the nine months
ended September 30, 2005, the return on average assets (ROA) was 1.12% and return on
average equity (ROE) was 14.34%.
David A. Bochnowski, Chairman and Chief Executive Officer, attributed the Bank’s
performance to consistent core earnings, asset quality, increased noninterest income from
banking activities and stable operating expenses.
During the quarter ended September 30, 2005, total assets decreased by $8.2 million,
or 1.4%, to $583.4 million. Loan growth totaled $5.3 million and securities growth totaled
$4.9 million, while short-term investments decreased by $12.1 million. Short-term
investments were used to fund loan and securities growth. Core deposits, which include
checking, savings and money market accounts, decreased by $8.6 million, while certificates
of deposit increased by $3.7 million. Core deposits represented 57.6% of the Bancorp’s
total deposits at September 30, 2005.
For the nine months ended September 30, 2005, total assets increased $26.0 million, or
4.7%, to $583.4 million. Loan growth totaled $17.0 million, while securities growth
totaled $9.9 million. Retail deposits were utilized to fund asset growth and repay
borrowed funds. Core deposits grew $18.6 million, while certificates of deposit increased
by $9.2 million.
The Bancorp’s net interest income, which is the difference between interest income
from loans and investments and interest expense paid to fund providers, totaled $5.01
million for the quarter ended September 30, 2005, compared to $4.96 million for the quarter
ended September 30, 2004, an increase of 1%. For the nine months ended September 30, 2005,
net interest income totaled $15.21 million compared to $14.74 million for the same period a
year earlier, an increase of 3%.
“The Bancorp has increased net interest income, the Bancorp’s core income, throughout
the year, a significant outcome in light of the actions of the Federal Reserve to raise
interest rates during 2005,” said Bochnowski.
Despite the current general economic pressures, the Bancorp’s non-performing loans to total
assets remains at the manageable level of 0.24% at September 30, 2005. The loan loss provision of
$40 thousand during the third quarter of 2005 and $165 thousand for the nine months ended September
30, 2005, takes into consideration management’s current judgments about the credit quality of the
loan portfolio, changes in the portfolio mix and local economic conditions. The Bancorp’s
allowance for loan losses totaled $4.1 million at September 30, 2005.
Noninterest income decreased by $85 thousand, or 8.8%, for the three months ended September
30, 2005. The decrease for the current three month period was primarily due to the $132 thousand
loan sale gain that was realized during the third quarter of 2004. For the nine months ended
September 30, 2005, noninterest income increased by $100 thousand, or 4.0%. The increase for the
nine month period was a result of an increase in income from fees and service charges, increased
income from investment and trust services and increases in the cash value of bank owned life
insurance. Noninterest income has also been impacted by a decrease in gains from security sales of
$163 thousand and a decrease in loan sales of $114 thousand for the nine months ended September 30,
2005.
Noninterest expense increased by $134 thousand, or 4.0%, for the quarter ended September 30,
2005. For the nine months ended September 30, 2005, noninterest expense increased by $571
thousand, or 5.8%. The increase in noninterest expense for both periods was primarily due to
increased compensation, due to annual salary increases, additional staffing for current banking
operations and benefit accruals.
At September 30, 2005, stockholders’ equity stood at $46.0 million or 7.9% of total assets.
The book value of the Bancorp’s stock stood at $16.50 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.