Exhibit 99.1
FOR IMMEDIATE RELEASE
APRIL 19, 2006
FOR FURTHER INFORMATION
CONTACT DAVID A. BOCHNOWSKI
(219) 853-7575
NORTHWEST INDIANA BANCORP REPORTS
QUARTERLY EARNINGS INCREASE
Munster, Indiana — - NorthWest Indiana Bancorp, the holding company for Peoples Bank,
reported net income of $1.7 million, or $0.60 earnings per basic and diluted share for the
quarter ended March 31, 2006, compared to net income of $1.6 million, or $0.58 earnings per
basic and $0.57 earnings per diluted share for the same period a year earlier. The current
quarter net income represented a 4.3% increase over the first quarter net income reported
during the prior year. In addition, for the quarter ended March 31, 2006, the return on
average assets (ROA) was 1.10% and return on average equity (ROE) was 14.24%.
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.
At March 31, 2006, assets totaled $615.2 million. During the first quarter,
securities growth totaled $7.4 million, while loan balances increased by $1.9 million and
short-term investments decreased by $20.0 million. Core deposits, which include checking,
savings and money market accounts, decreased by $16.7 million during the three months ended
March 31, 2006. Core deposits represented 57.7% of the Bancorp’s total deposits at quarter
end. The decrease in short-term investments and core deposits was affected by a $25.0
million withdrawal of short-term local government funds. Certificates of deposit growth
totaled $816 thousand, while sweep repurchase agreement balances increased by $2.2 million.
Net interest income, the difference between interest income from loans and investments
and interest expense paid to fund providers, totaled $5.0 million for the current quarter,
compared to $5.1 million for the quarter ended March 31, 2005.
“Core earnings have been negatively impacted by the flat treasury yield curve and the
persistent increase in short term interest rates by the Federal Reserve. The increase in
interest costs paid to depositors has not been matched by an up tick in loan demand by
borrowers,” said Bochnowski.
Despite the current general economic pressures, the Bancorp’s non-performing loans to total
assets remains at the manageable level of 0.44% at March 31, 2006. During the current quarter, no
additional provisions to the allowance for loan losses were required. The balance of $4.2 million
in the allowance for loan losses at March 31, 2006, is considered adequate by management based on
its current analysis of loan portfolio credit quality, changes in the portfolio mix and local
economic conditions.
Noninterest income from banking activities has increased by $233 thousand, or 29.1%, for the
three months ended March 31, 2006. The current quarter’s increase was due to increased income from
account related services, increased income from trust operations, and income from the sale of
foreclosed real estate.
Noninterest expense increased by $204 thousand, or 6.0%, for the quarter ended March 31, 2006.
The change was a result of increases in compensation and benefits, occupancy expense, marketing
and other expenditures related to normal banking operations.
At March 31, 2006, shareholders’ equity stood at $47.2 million or 7.7% of total assets. The
book value of the Bancorp’s stock stood at $16.90 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, 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,
competition and other risks set forth in the Bancorp’s reports filed with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2005.
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. Forward-looking statements
speak only as of the date they are made, and the Bancorp undertakes no obligation to update them in
light of new information or future events.
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