Exhibit 99.1
 
 
FOR IMMEDIATE RELEASE
April 21, 2010
FOR FURTHER INFORMATION
CONTACT DAVID A. BOCHNOWSKI
(219) 853-7575
 
NORTHWEST INDIANA BANCORP
 
REPORTS FIRST QUARTER RESULTS

Munster, Indiana - NorthWest Indiana Bancorp, the holding company for Peoples Bank, reported net income of $1.4 million for the first quarter ended March 31, 2010, with assets totaling $685.6 million.

David A. Bochnowski, Chairman and Chief Executive Officer, reports that “Peoples Bank remains focused on managing our operations through the stress caused by the severe downturn in the economy. The first quarter of 2010 has proven to be a good start for Peoples Bank.”

The first quarter 2010 net income of $1.4 million, or $0.49 earnings per basic and diluted share, compares to net income of $1.7 million, or $0.61 earnings per basic and diluted share for the first quarter of 2009.  For the current quarter, the return on average assets (ROA) was 0.82% and return on average equity (ROE) was 10.07%.

“The fundamentals of our performance remain strong, led by increased core earnings, asset growth, core account growth and stable operating expenses.  The local economy is showing signs of recovery as consumer and small business confidence picks up.  Loan balances increased during the quarter, a positive sign in the current business cycle,” Bochnowski continued.

According to Bochnowski, “Our asset quality remained relatively unchanged during the first three months of the year despite continued weakness in real estate values.  Because of the uncertainty associated with the recession, the Bank continues to prudently manage our risk exposure through additional loan loss reserves for estimated losses.”

“As we celebrate our 100 year tradition of community banking, Peoples Bank continues to be a well capitalized bank under the applicable Federal Deposit Insurance Corporation (FDIC) banking regulations.  Our capital growth will sustain our expansion as we break ground this month for a twelfth banking center to be located in St. John,” said Bochnowski.

Net Interest Income
Net interest income, the difference between interest income from loans and investments and interest expense paid to fund providers, totaled $6.2 million for the quarter ended March 31, 2010, compared to $5.8 million for the quarter ended March 31, 2009, an increase of $438 thousand or 7.6%.  The Bancorp’s net interest margin on a tax adjusted basis was 4.19% for the quarter ended March 31, 2010, compared to 3.92% for the quarter ended March 31, 2009.  The Bancorp’s net interest income was positively impacted by core deposit growth 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.
 
 
Noninterest Income
Noninterest income from banking activities for the quarter ended March 31, 2010 totaled $1.3 million, compared to $1.6 million for the quarter ended March 31, 2009, a decrease of $312 thousand or 19.3%.  The decrease in noninterest income is a result of a $457 thousand reduction in gains from the sale of loans, as mortgage loan refinance activity declined during 2010 compared to 2009.  During the first quarter of 2010, strong increases in noninterest income were recognized from the sale of securities and Wealth Management operations.

Noninterest Expense
Noninterest expense related to operating activities totaled $4.7 million for the quarter ended March 31, 2010, compared to $4.5 million for the quarter ended March 31, 2009, an increase of $127 thousand or 2.8%.  The increase in noninterest expense for the current quarter was a result of increased compensation and occupancy costs related to the opening of the Valparaiso Banking Center in June 2009.  Also affecting the increase in noninterest expense was the payment of additional FDIC insurance premiums, resulting from an industry wide premium rate increase.  During the current quarter, marketing expenditures increased as a result of additional brand advertising.

Funding
At March 31, 2010, deposits totaled $567.5 million, an increase of $27.0 million, compared to December 31, 2009.  The increase in deposits was attributable to strong growth in checking, savings, money market and certificate of deposit account balances.  At March 31, 2010, core deposits totaled $333.1 million, an increase of $19.5 million compared to December 31, 2009, while certificates of deposit totaled $234.4 million, an increase of $7.6 million compared to December 31, 2009.  Core deposits include checking, savings, and money market accounts and represented 58.7% of the Bancorp’s total deposits at March 31, 2010.  At March 31, 2010, borrowings and repurchase agreements totaled $55.1 million, a decrease of $7.9 million for the current quarter, as deposit growth was used to repay borrowings.

Lending
 The Bancorp’s lending portfolio totaled $460.6 million at March 31, 2010, an increase of $2.4 million, compared to December 31, 2009.  During the current three months, commercial and government related loans increased by $7.6 million, while mortgage and consumer related loans decreased by $5.2 million.  During the current quarter, the Bancorp’s management sold $4.5 million in newly originated fixed rate mortgage loans into the secondary market.

Asset Quality
Non-performing loans totaled $18.8 million at March 31, 2010 compared to $18.6 million at December 31, 2009, an increase of $263 thousand or 1.4%.  The current level of non-performing loans is concentrated with four commercial real estate participation loans in the aggregate of $11.6 million that were placed in non-accrual status during 2009.  The Bancorp’s ratio of non-performing loans to total assets was 2.74% at March 31, 2010, compared to 2.80% at December 31, 2009.

For the three months ended March 31, 2010, loan loss provisions totaled $1.2 million, while $700 thousand in provisions were recorded for the three months ended March 31, 2009.  For the first quarter of 2010, net loan charge-offs totaled $295 thousand, compared to $553 thousand for the first quarter of 2009.  At March 31, 2010, the allowance for loan losses totaled $7.1 million and is considered adequate by management.  The allowance for loan losses as a percentage of totals loans was 1.53% at March 31, 2010, compared to 1.33% at December 31, 2009.  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.
 
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Capital Adequacy
At March 31, 2010, shareholders’ equity stood at $54.3 million or 7.92% of total assets.  The Bancorp’s regulatory capital ratios at March 31, 2010 were 11.9% for total capital to risk-weighted assets, 10.3% for tier 1 capital to risk-weighted assets and 7.9% for tier 1 capital to adjusted average assets.  Under all regulatory capital requirements, the Bancorp is considered well capitalized.  The book value of the Bancorp’s stock stood at $19.26 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, Schererville, and Valparaiso, 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, 2009.  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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NorthWest Indiana Bancorp
Quarterly Financial Report 

Key Ratios
  
Three Months Ended
  
   
March 31,
  
   
(Unaudited)
  
   
2010
    
2009
  
Return on equity
     10.07 %     12.65 %
Return on assets
     0.82 %     1.02 %
Basic earnings per share
   $ 0.49     $ 0.61  
Diluted earnings per share
   $ 0.49     $ 0.61  
Yield on loans
     5.41 %     5.65 %
Yield on security investments
     3.65 %     4.56 %
Total yield on earning assets
     4.94 %     5.40 %
Cost of deposits
     0.86 %     1.63 %
Cost of borrowings
     2.30 %     2.57 %
Total cost of funds
     0.99 %     1.74 %
Net interest margin - tax equivalent
     4.19 %     3.92 %
Noninterest income / average assets
     0.77 %     0.96 %
Noninterest expense / average assets
     2.76 %     2.72 %
Net noninterest margin / average assets
     -1.99 %     -1.76 %
Efficiency ratio
     62.10 %     61.40 %
Effective tax rate
     14.15 %     20.80 %
Dividend declared per common share
   $ 0.21     $ 0.36  
 
   
March 31,
        
   
2010
    
December 31,
  
   
(Unaudited)
    
2009
  
Net worth / total assets
     7.92 %     8.03 %
Book value per share
   $ 19.26     $ 18.83  
Non-performing loans to total assets
     2.74 %     2.80 %
Non-performing loans to total loans
     4.09 %     4.05 %
Allowance for loan loss to non-performing loans
     37.46 %     32.93 %
Allowance for loan loss to loans outstanding
     1.53 %     1.33 %
Foreclosed real estate to total assets
     0.53 %     0.57 %
 
 
Consolidated Statements of Income
  
Three Months Ended
  
(Dollars in thousands)
  
March 31,
  
   
(Unaudited)
  
   
2010
    
2009
  
Interest income:
            
Loans
   $ 6,212     $ 6,854  
Securities & short-term investments
     1,537       1,587  
Total interest income
     7,749       8,441  
Interest expense:
                
Deposits
     1,201       2,166  
Borrowings
     321       486  
Total interest expense
     1,522       2,652  
Net interest income
     6,227       5,789  
Provision for loan losses
     1,235       700  
Net interest income after provision for loan losses
     4,992       5,089  
Noninterest income:
                
Fees & service charges
     609       639  
Gain on sale of securities, net
     289       140  
Wealth management operations
     281       197  
Gain on sale of loans, net
     109       566  
Cash value increase from bank owned life insurance
     100       105  
Gain/(loss) on foreclosed real estate
     22       (37 )
Other-than-temporary impairment of securities
     (113 )     -  
Other income
     4       3  
Total noninterest income
     1,301       1,613  
Noninterest expense:
                
Compensation & benefits
     2,409       2,365  
Occupancy & equipment
     785       783  
Federal deposit insurance premiums
     231       186  
Data processing
     233       215  
Marketing
     125       67  
Other
     892       932  
Total noninterest expense
     4,675       4,548  
Income before income taxes
     1,618       2,154  
Income tax expenses
     229       449  
Net income
   $ 1,389     $ 1,705  
 
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NorthWest Indiana Bancorp
Quarterly Financial Report 

Balance Sheet Data
                        
(Dollars in thousands)
  
March 31,
                    
   
2010
    
December 31,
    
Change
    
Mix
  
   
(Unaudited)
    
2009
    
%
    
%
  
Total assets
   $ 685,682     $ 661,806       3.6 %      
Cash & cash equivalents
     24,348       13,222       84.1 %      
Securities - available for sale
     139,584       124,776       11.9 %      
Securities - held to maturity
     18,624       19,557       -4.8 %      
                               
Loans receivable:
                              
Construction and land development
     53,487       53,288       0.4 %     10.6 %
1-4 first liens
     151,702       155,937       -2.7 %     40.9 %
Multifamily
     9,064       9,165       -1.1 %     2.7 %
Commercial real estate
     135,899       132,278       2.7 %     26.0 %
Commercial business
     64,693       63,099       2.5 %     10.4 %
1-4 Junior Liens
     3,159       3,227       -2.1 %     1.1 %
HELOC
     21,526       22,264       -3.3 %     4.2 %
Lot loans
     2,922       3,010       -2.9 %     0.7 %
Consumer
     1,381       1,504       -8.2 %     0.4 %
Government and other
     16,781       14,473       15.9 %     3.0 %
Total loans
     460,614       458,245       0.5 %     100.0 %
                                 
Deposits:
                                
Core deposits:
                                
Noninterest bearing checking
     48,511       42,390       14.4 %     9.3 %
Interest bearing checking
     109,277       102,287       6.8 %     16.2 %
Savings
     60,145       56,920       5.7 %     10.3 %
MMDA
     115,192       112,071       2.8 %     23.0 %
Total core deposits
     333,125       313,668       6.2 %     58.8 %
Certificates of deposit
     234,409       226,859       3.3 %     41.2 %
Total deposits
     567,534       540,527       5.0 %     100.0 %
                                 
Borrowings
     55,129       63,022       -12.5 %        
Stockholder's equity
     54,319       53,078       2.3 %        
 
 
Asset Quality
  
March 31,
              
(Dollars in thousands)
  
2010
    
December 31,
    
Change
  
   
(Unaudited)
    
2009
    
%
  
Nonaccruing loans
   $ 17,705     $ 17,074       3.7 %
Accruing loans delinquent more than 90 days
     1,123       1,491       -24.7 %
Securities in non-accrual
     710       704       0.9 %
Foreclosed real estate
     3,625       3,747       -3.3 %
Total nonperforming assets
     23,163       23,016       0.6 %
                         
Allowance for loan losses (ALL):
                        
ALL specific allowances for impaired loans
     1,721       1,179       46.0 %
ALL general allowances for loan portfolio
     5,333       4,935       8.1 %
Total ALL
     7,054       6,114       15.4 %
 
 
Capital Adequacy
  
Actual
    
Required to be
  
   
Ratio
    
well capitalized
  
             
Total capital to risk-weighted assets
     11.9 %     10.0 %
Tier 1 capital to risk-weighted assets
     10.6 %     6.0 %
Tier 1 capital to adjusted average assets
     7.9 %     5.0 %
 
 
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