Exhibit 99.1
FOR IMMEDIATE RELEASE
July 20, 2006
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 $1.7 million, or $0.59 earnings per basic and $0.58 earnings per
diluted share for the quarter ended June 30, 2006, compared to net income of $1.6 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 0.3% increase over the second
quarter net income reported during the prior year. In addition, for the quarter ended June
30, 2006, the return on average assets (ROA) was 1.07% and return on average equity (ROE)
was 13.89%.
For the six months ended June 30, 2006, the Bancorp reported net income of $3.33
million, or $1.19 earnings per basic and $1.18 earnings per diluted share compared to $3.26
million, or $1.17 earnings per basic and $1.15 earnings per diluted share for the same
period a year earlier. The current six month net income represented a 2.3% increase over
the six- month net income reported during the prior year. In addition, for the six months
ended June 30, 2006, the return on average assets (ROA) was 1.08% and return on average
equity (ROE) was 14.06%.
David A. Bochnowski, Chairman and Chief Executive Officer, attributed the Bank’s performance
to asset quality, increased noninterest income from banking activities and stable operating
expenses.
During the quarter ended June 30, 2006, total assets increased by $7.4 million, or
1.2%, to $622.6 million. Loan growth totaled $10.2 million, while securities decreased by
$3.1 million. Core deposits, which include checking, savings and money market accounts,
decreased by $3.8 million during the quarter ended June 30, 2006. Core deposits
represented 57.8% of the Bancorp’s total deposits at June 30, 2006. Certificates of
deposit decreased by $2.5 million, while borrowings increased by $14.3 million.
For the six months ended June 30, 2006, total assets decreased by $4.9 million, or
0.8%, to $622.6 million. Loan growth totaled $12.1 million, while securities growth
totaled $4.4 million and short-term investments decreased by $20.0 million. Core deposits
decreased by $20.6 million during the six months ended June 30, 2006. 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 decreased by $1.7 million,
while borrowings increased by $17.1 million.
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 quarter ended
June 30, 2006, compared to $5.1 million for the quarter ended June 30, 2005, a decrease of
4.8%. For the six months ended June 30, 2006, net interest income totaled $9.9 million
compared to $10.2 million for the same period a year earlier, a decrease of 2.6%.
“ Despite the continued escalation of interest rates by the Federal Reserve, Peoples Bank has
reported an increase in earnings for the current quarter and the first six months of the year.
Although our core earnings have been buffeted by rising rates paid to depositors along with a
dampening of borrower enthusiasm for loan products, we have responded by controlling our operating
costs while keeping a watchful eye on credit quality, “ said Bochnowski.
Despite the current general economic pressures, the Bancorp’s non-performing loans to total
assets remain at the manageable level of 0.41% at June 30, 2006. During the current quarter and
six-month period, $15 thousand in additional provisions to the allowance for loan losses were
required. Loan loss recoveries, net of charge-off totaled $12 thousand for the quarter and $27
thousand for the six months ended June 30, 2006. The balance of $4.2 million in the allowance for
loan losses at June 30, 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 increased by $146 thousand, or 16.2%, for the three months ended June 30,
2006. For the six months ended June 30, 2006, noninterest income increased by $383 thousand, or
22.5%. The current quarter and six month increase was due to income from account related services,
increased income from operations and increases in the cash value of bank owned life insurance. In
addition, the six-month noninterest income increase was positively impacted by a $42 thousand gain
from the sale of foreclosed real estate. Noninterest income has also been impacted by a decrease
in gains from security sales of $15 thousand for the current quarter and $29 thousand for the
current six-month period.
Noninterest expense decreased by $3 thousand, or 0.1%, for the quarter ended June 30, 2006.
For the six months ended June 30, 2006, noninterest expense increased by $201 thousand, or 2.9%.
The decrease for the quarter and minimal increase for the six months is due to management’s focus
on reviewing internal processes in an effort to gain cost saving efficiencies. The increase for
the six month period was primarily due to increased occupancy, data processing and marketing
expenses related to normal banking operations.
At June 30, 2006, stockholders’ equity stood at $47.5 million or 7.6% of total assets. The
book value of the Bancorp’s stock stood at $17.00 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