Exhibit 99.1
| |
|
|
|
|
FOR IMMEDIATE RELEASE |
|
|
April 23, 2009 |
|
|
FOR FURTHER INFORMATION |
|
|
CONTACT DAVID A. BOCHNOWSKI |
|
|
(219) 853-7575 |
NORTHWEST INDIANA BANCORP
REPORTS FIRST QUARTER EARNINGS INCREASE
Munster, Indiana — NorthWest Indiana Bancorp, the holding company for Peoples Bank, reported a
3.5% increase in earnings for the quarter ended March 31, 2009, compared to the quarter ended March
31, 2008.
This increase reflects earnings of $1.7 million, or $0.61 in earnings per basic and diluted
share, compared to earnings of $1.6 million, or $0.59 in earnings per basic and $0.58 earnings per
diluted share for the first quarter of 2008. For the quarter ended March 31, 2009, the return on
average assets (ROA) was 1.02% and return on average equity (ROE) was 12.65%. At March 31, 2009,
the Bancorp’s assets totaled $678.0 million, an increase of $13.3 million or 2.0% for the quarter.
“Despite the stress of the current economy, we are pleased to report a 3.5% increase in
earnings for the first quarter of the year. Our results buck the national trend and were driven by
a strong net interest margin, core deposit growth, as well as an increase in loan originations,”
said David A. Bochnowski, Chairman and Chief Executive Officer.
At March 31, 2009, deposits totaled $551.6 million, an increase of $23.5 million, compared to
December 31, 2008. The increase in deposits is primarily related to growth in balances for
checking, savings and certificates of deposit. At March 31, 2009, core deposits totaled $310.1
million, while certificates of deposit totaled $241.1 million. Core deposits include checking,
savings, and money market accounts. Core deposits represented 56.3% of the Bancorp’s total
deposits at quarter-end. At March 31, 2009, borrowings totaled $68.0 million, a decrease of $6.8
million for the quarter.
During the three months ended March 31, 2009, loan demand remained strong as $66.5 million in
new loans were originated, compared to $61.2 million for the three months ended March 31, 2008, an
increase of $5.3 million or 8.7%. The Bancorp’s lending portfolio totaled $475.3 million at March
31, 2009, a decrease of $14.2 million. Bochnowski noted that to avoid long-term interest rate
risk, the Bank adopted a policy of selling all conforming fixed rate mortgage loan originations
into the secondary market. During the current quarter, the Bancorp’s management sold $19.9 million
in newly originated fixed rate mortgage loans and $10.5 million in seasoned fixed rate mortgage
loans into the secondary market. During the current quarter, $9.8 million in growth occurred in
construction & development loans, commercial real estate loans, commercial business loans,
multifamily loans and loans to local municipalities.
During the first quarter of 2009, interest bearing cash balances increased by $23.3 million as
a result of deposit growth and the proceeds from mortgage loan sales. Investment securities
totaled $129.1 million at March 31, 2009, an increase of $2.4 million.
“The Bank’s core income strategy continues to provide a strong buffer to the downturn in this
economy. Our focus on providing traditional banking services to our consumer and small business
customers has driven stable operating results in these unusual times,” Bochnowski said.
Net interest income, the difference between interest income from loans and investments and
interest expense paid to fund providers, totaled $5.8 million for the current quarter, compared to
$5.0 million for the quarter ended March 31, 2008, an increase of $827 thousand or 16.7%. As a
result of the increase in net interest income, the Bancorp’s net interest margin on a tax adjusted
basis was 3.92% for the three months ended March 31, 2009, compared to 3.48% for the three months
ended March 31, 2008. The increase in interest income has been positively impacted by an increase
in construction, commercial and municipal loan balances, an increase in core deposits, and a
decrease in the cost of funds as a result of the Federal Reserve’s continued action in maintaining
a low interest rate environment.
The Bancorp’s ratio of non-performing loans to total assets decreased to 1.72% at March 31,
2009, compared to 1.87% at December 31, 2008. As a result of management’s assessment of current
credit quality within its loan portfolio, provisions to the allowance for loan losses totaled $700
thousand for the first quarter of 2009, while $130 thousand in provisions were recorded during the
first quarter of 2008. For the three months ended March 31, 2009, net loan charge-offs totaled
$553 thousand, compared to $5 thousand for the first three months of 2008. At March 31, 2009, the
allowance for loan losses totaled $6.0 million and is considered adequate by management. The
allowance for loan losses as a percentage of totals loans was 1.26% at March 31, 2009, compared to
1.19% at December 31, 2008. To the extent that actual cash flows, collateral values and strength
of personal guarantees differ from current estimates used to establish the allowance for loan
losses, additional provisions to the allowance for loan losses may be required.
Noninterest income from banking activities for the quarter ended March 31, 2009, totaled $1.6
million, compared to $1.2 million for the quarter ended March 31, 2008, an increase of $416
thousand, or 34.8%. Contributing to the increase in noninterest income for the first quarter of
2009 were $566 thousand in gains from the sale of $30.4 million in fixed rate mortgage loans and
$140 thousand in gains from the sale of available-for-sale securities.
Noninterest expense related to operating activities totaled $4.5 million for the quarter ended
March 31, 2009, compared to $4.1 million for the quarter ended March 31, 2008, an increase of $481
thousand, or 11.8%. The increase in noninterest expense for the first quarter of 2009 was a result
of increased compensation and occupancy costs related to the opening of the Gary Banking Center in
the fourth quarter of 2008. Also affecting the increase in noninterest expense was the payment of
additional FDIC insurance premiums, which was a result of an industry wide increase in the FDIC
insurance premium assessment rates.
“Peoples Bank remains cautiously optimistic about an improvement in the current economic
conditions. Our deposit and lending growth bode well for our community and we are excited by the
prospect of opening our Valparaiso banking center in June of this year,” Bochnowski noted.
At March 31, 2009, shareholders’ equity stood at $53.2 million or 7.85% of total assets. The
Bancorp’s total capital to risk-weighted assets was 12.1% at March 31, 2009. Under all regulatory
capital requirements, the Bancorp is considered well capitalized. The book value of the
Bancorp’s stock stood at $18.94 at the end of the first quarter.
The NorthWest Indiana Bancorp’s common stock is traded on the OTC Bulletin Board under NWIN.
The Bancorp’s subsidiary, Peoples Bank, has offices in Crown Point, Dyer, East Chicago, Gary,
Hammond, Hobart, Merrillville, Munster, and Schererville, Indiana. The Bank’s website,
www.ibankpeoples.com, provides information on the Bank’s products, services 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,
economic conditions resulting from the current turmoil in the financial services industry,
including depressed demand in the housing market, 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, 2008. 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.
NorthWest Indiana Bancorp
Quarterly Financial Report
| |
|
|
|
|
|
|
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|
| |
|
Three Months Ended |
| |
|
March 31, |
| |
|
(Unaudited) |
| Key Ratios |
|
2009 |
|
2008 |
Return on equity |
|
|
12.65 |
% |
|
|
12.39 |
% |
Return on assets |
|
|
1.02 |
% |
|
|
1.04 |
% |
Basic earnings per share |
|
$ |
0.61 |
|
|
$ |
0.59 |
|
Diluted earnings per share |
|
$ |
0.61 |
|
|
$ |
0.58 |
|
Yield on loans |
|
|
5.65 |
% |
|
|
6.24 |
% |
Yield on security investments |
|
|
4.56 |
% |
|
|
4.66 |
% |
Total yield on earning assets |
|
|
5.40 |
% |
|
|
5.92 |
% |
Cost of deposits |
|
|
1.63 |
% |
|
|
2.54 |
% |
Cost of borrowings |
|
|
2.57 |
% |
|
|
3.82 |
% |
Total cost of funds |
|
|
1.74 |
% |
|
|
2.67 |
% |
Net interest margin — tax equivalent |
|
|
3.92 |
% |
|
|
3.48 |
% |
Noninterest income / average assets |
|
|
0.96 |
% |
|
|
0.70 |
% |
Noninterest expense / average assets |
|
|
2.72 |
% |
|
|
2.62 |
% |
Net noninterest margin / average assets |
|
|
-1.76 |
% |
|
|
-1.92 |
% |
Efficiency ratio |
|
|
61.40 |
% |
|
|
66.00 |
% |
Effective tax rate |
|
|
20.80 |
% |
|
|
16.00 |
% |
Dividend declared per common share |
|
$ |
0.36 |
|
|
$ |
0.36 |
|
| |
|
|
|
|
|
|
|
|
| |
|
March 31, |
|
|
| |
|
2009 |
|
December 31, |
| |
|
(Unaudited) |
|
2008 |
Net worth / total assets |
|
|
7.85 |
% |
|
|
7.94 |
% |
Book value per share |
|
$ |
18.94 |
|
|
$ |
18.79 |
|
Non-performing loans to total assets |
|
|
1.72 |
% |
|
|
1.87 |
% |
Non-performing loans to total loans |
|
|
2.46 |
% |
|
|
2.54 |
% |
Allowance for loan loss to non-performing loans |
|
|
51.17 |
% |
|
|
49.97 |
% |
Allowance for loan loss to loans outstanding |
|
|
1.26 |
% |
|
|
1.19 |
% |
Foreclosed real estate to total assets |
|
|
0.08 |
% |
|
|
0.08 |
% |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
March 31, |
|
| Consolidated Statements of Income |
|
(Unaudited) |
|
| (Dollars in thousands) |
|
2009 |
|
|
2008 |
|
Interest income: |
|
|
|
|
|
|
|
|
Loans |
|
$ |
6,854 |
|
|
$ |
7,426 |
|
Securities & short-term investments |
|
|
1,587 |
|
|
|
1,404 |
|
|
|
|
|
|
|
|
Total interest income |
|
|
8,441 |
|
|
|
8,830 |
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
Deposits |
|
|
2,166 |
|
|
|
3,286 |
|
Borrowings |
|
|
486 |
|
|
|
582 |
|
|
|
|
|
|
|
|
Total interest expense |
|
|
2,652 |
|
|
|
3,868 |
|
|
|
|
|
|
|
|
Net interest income |
|
|
5,789 |
|
|
|
4,962 |
|
Provision for loan losses |
|
|
700 |
|
|
|
130 |
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses |
|
|
5,089 |
|
|
|
4,832 |
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
Fees & service charges |
|
|
639 |
|
|
|
695 |
|
Wealth management operations |
|
|
197 |
|
|
|
208 |
|
Cash value increase from bank owned life insurance |
|
|
105 |
|
|
|
103 |
|
Gain on sale of securities, net |
|
|
140 |
|
|
|
116 |
|
Gain on sale of loans, net |
|
|
566 |
|
|
|
39 |
|
Gain/(loss) on foreclosed real estate |
|
|
(37 |
) |
|
|
19 |
|
Other income |
|
|
3 |
|
|
|
17 |
|
|
|
|
|
|
|
|
Total noninterest income |
|
|
1,613 |
|
|
|
1,197 |
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
Compensation & benefits |
|
|
2,365 |
|
|
|
2,182 |
|
Federal deposit insurance premiums |
|
|
186 |
|
|
|
15 |
|
Occupancy & equipment |
|
|
783 |
|
|
|
696 |
|
Data processing |
|
|
215 |
|
|
|
212 |
|
Marketing |
|
|
67 |
|
|
|
103 |
|
Other |
|
|
932 |
|
|
|
859 |
|
|
|
|
|
|
|
|
Total noninterest expense |
|
|
4,548 |
|
|
|
4,067 |
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
2,154 |
|
|
|
1,962 |
|
Income tax expenses |
|
|
449 |
|
|
|
314 |
|
|
|
|
|
|
|
|
Net income |
|
$ |
1,705 |
|
|
$ |
1,648 |
|
|
|
|
|
|
|
|
NorthWest Indiana Bancorp
Quarterly Financial Report
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
March 31, |
|
|
|
|
|
|
|
|
|
|
| Balance Sheet Data |
|
2009 |
|
|
December 31, |
|
|
Change |
|
|
Mix |
|
| (Dollars in thousands) |
|
(Unaudited) |
|
|
2008 |
|
|
% |
|
|
% |
|
Total assets |
|
$ |
678,018 |
|
|
$ |
664,732 |
|
|
|
2.0 |
% |
|
|
|
|
Cash & cash equivalents |
|
|
33,833 |
|
|
|
11,296 |
|
|
|
199.5 |
% |
|
|
|
|
Securities — available for sale |
|
|
110,634 |
|
|
|
108,207 |
|
|
|
2.2 |
% |
|
|
|
|
Securities — held to maturity |
|
|
18,503 |
|
|
|
18,515 |
|
|
|
-0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
|
|
58,346 |
|
|
|
54,975 |
|
|
|
6.1 |
% |
|
|
10.6 |
% |
1-4 first liens |
|
|
174,660 |
|
|
|
196,708 |
|
|
|
-11.2 |
% |
|
|
40.9 |
% |
Multifamily |
|
|
12,303 |
|
|
|
12,283 |
|
|
|
0.2 |
% |
|
|
2.7 |
% |
Commercial real estate |
|
|
130,796 |
|
|
|
130,256 |
|
|
|
0.4 |
% |
|
|
26.0 |
% |
Commercial business |
|
|
49,833 |
|
|
|
49,310 |
|
|
|
1.1 |
% |
|
|
10.4 |
% |
1-4 Junior Liens |
|
|
4,473 |
|
|
|
4,913 |
|
|
|
-9.0 |
% |
|
|
1.1 |
% |
HELOC |
|
|
20,904 |
|
|
|
21,231 |
|
|
|
-1.5 |
% |
|
|
4.2 |
% |
Lot loans |
|
|
3,031 |
|
|
|
3,084 |
|
|
|
-1.7 |
% |
|
|
0.7 |
% |
Consumer |
|
|
1,866 |
|
|
|
1,966 |
|
|
|
-5.1 |
% |
|
|
0.4 |
% |
Government and other |
|
|
20,158 |
|
|
|
14,783 |
|
|
|
36.4 |
% |
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
476,370 |
|
|
|
489,509 |
|
|
|
-2.7 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing checking |
|
|
46,886 |
|
|
|
43,367 |
|
|
|
8.1 |
% |
|
|
9.3 |
% |
Interest bearing checking |
|
|
100,263 |
|
|
|
87,379 |
|
|
|
14.7 |
% |
|
|
16.2 |
% |
Savings |
|
|
55,251 |
|
|
|
52,459 |
|
|
|
5.3 |
% |
|
|
10.3 |
% |
MMDA |
|
|
108,176 |
|
|
|
113,870 |
|
|
|
-5.0 |
% |
|
|
23.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core deposits |
|
|
310,576 |
|
|
|
297,075 |
|
|
|
4.5 |
% |
|
|
58.8 |
% |
Certificates of deposit |
|
|
241,070 |
|
|
|
231,073 |
|
|
|
4.3 |
% |
|
|
41.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
551,646 |
|
|
|
528,148 |
|
|
|
4.4 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
67,993 |
|
|
|
74,795 |
|
|
|
-9.1 |
% |
|
|
|
|
Stockholder’s equity |
|
|
53,173 |
|
|
|
52,773 |
|
|
|
0.8 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
March 31, |
|
|
|
|
|
|
|
| Asset Quality |
|
2009 |
|
|
December 31, |
|
|
Change |
|
| (Dollars in thousands) |
|
(Unaudited) |
|
|
2008 |
|
|
% |
|
Nonaccruing loans |
|
$ |
9,893 |
|
|
$ |
10,937 |
|
|
|
-9.5 |
% |
Accruing loans delinquent more than 90 days |
|
|
1,788 |
|
|
|
1,476 |
|
|
|
21.1 |
% |
Foreclosed real estate |
|
|
556 |
|
|
|
527 |
|
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
|
12,237 |
|
|
|
12,940 |
|
|
|
-5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses (ALL): |
|
|
|
|
|
|
|
|
|
|
|
|
ALL specific allowances for impaired loans |
|
|
1,951 |
|
|
|
1,683 |
|
|
|
15.9 |
% |
ALL general allowances for loan portfolio |
|
|
4,026 |
|
|
|
4,147 |
|
|
|
-2.9 |
% |
|
|
|
|
|
|
|
|
|
|
Total ALL |
|
|
5,977 |
|
|
|
5,830 |
|
|
|
2.5 |
% |
| |
|
|
|
|
|
|
|
|
| |
|
Actual |
|
Required to be |
| Capital Adequacy |
|
Ratio |
|
well capitalized |
Total capital to risk-weighted assets |
|
|
12.1 |
% |
|
|
10.0 |
% |
Tier 1 capital to risk-weighted assets |
|
|
10.9 |
% |
|
|
6.0 |
% |
Tier 1 capital to adjusted average assets |
|
|
8.2 |
% |
|
|
5.0 |
% |