Attached files
| file | filename |
|---|---|
| 8-K - Finward Bancorp | v210554_8-k.htm |
Exhibit
99.1
|
FOR
IMMEDIATE RELEASE
|
FOR
FURTHER INFORMATION
|
|
February
9, 2011
|
CONTACT
DAVID A. BOCHNOWSKI
|
|
(219)
853-7575
|
NORTHWEST
INDIANA BANCORP
REPORTS
2010 ANNUAL AND FOURTH QUARTER RESULTS
Munster,
Indiana - NorthWest Indiana Bancorp, the holding company for Peoples Bank,
reported net income of $5.2 million for the twelve months ended December 31,
2010, a 108.2% increase over the $2.5 million net income reported for the twelve
months ended December 31, 2009. Earnings for the three-month period
ended December 31, 2010 were $1.1 million, a $7 thousand increase over the net
income reported for the same period in 2009. At the end of 2010, the
Bancorp’s assets totaled $631.1 million.
“Peoples
Bank continues to generate operating profits that outpace industry performance,”
said David A. Bochnowski, Chairman and Chief Executive Officer. “The
Bank doubled our earnings in 2010 despite the lingering effects of the worst
recession in modern times. Our results can be attributed to a strong
management team, dedicated community bank employees, core earnings, and
efficient banking operations.”
The 2010
earnings of $5.2 million, or $1.83 earnings per basic and diluted share,
compares to earnings of $2.5 million, or $0.88 earnings per basic and diluted
share for 2009. For the current year, the return on average assets
(ROA) was 0.77% and the return on average assets (ROE) was 9.03%.
The
fourth quarter 2010 net income of $1.132 million, or $0.40 earnings per basic
and diluted share, compares to net income of $1.125 million, or $0.40 earnings
per basic and diluted share for the fourth quarter of 2009. The 2010
fourth quarter net income was negatively impacted by a $190 thousand impairment
charge for a decline in appraised value for a property held for future banking
center expansion. For the current quarter, the ROA was 0.70% and the
ROE was 7.68%.
“Our
performance has been driven by banking fundamentals as the Bank continues to be
strategically positioned with core funding as the driver of
profitability. Peoples Bank prudently manages the resources entrusted
to us by our customers with an outcome that provides sustainable earnings that
fund our operations, permits capital growth, and establishes reserves for
troubled loans in these challenging times,” said
Bochnowski.
“The Bancorp and
our operating subsidiary, Peoples Bank, continue to be well capitalized under
applicable federal banking regulations. Our capital strength exceeds
all regulatory requirements with the Bancorp’s and Bank’s Tier 1 capital ratio
at 8.5% and Total Risk Based Capital for the Bancorp at 12.9% with the Bank’s
Total Risk Based Capital at 12.8% at the end of 2010,” he
said.
Bochnowski
added the Bank is focused on maintaining a strong capital position as emerging
banking standards are expected to require all banks to hold higher levels of
capital on their balance sheets as an offset to fluctuations in the
economy.
Net
Interest Income
Net
interest income, the difference between interest income from loans and
investments and interest expense paid to funds providers, totaled $25.1 million
for 2010, compared to $23.3 million for 2009, an increase of $1.8 million or
7.5%. For the quarter ended December 31, 2010, net interest income
totaled $6.2 million, compared to $6.1 million for the three months ended
December 31, 2009, an increase of $66 thousand or 1.1%. The Bancorp’s
net interest margin on a tax adjusted basis was 4.25% for 2010, compared to
3.97% for 2009. For the three months ended December 31, 2010, the tax
adjusted net interest margin was 4.28%, compared to 4.14% for the three months
ended December 31, 2009. The Bancorp’s net interest income was
positively impacted by core deposit growth and a continued decrease in the cost
of funds as a result of the Federal Reserve’s on-going action in maintaining a
low interest rate environment.
Noninterest
Income
Noninterest
income from banking activities for 2010 totaled $5.8 million, compared to $5.6
million for 2009, an increase of $188 thousand or 3.4%. The change
during the current year was positively impacted by an increase in gains from the
sale of securities and loans, and an increase in income from Wealth Management
operations. For the three months ended December 31, 2010, noninterest
income totaled $1.6 million, compared to $1.2 million for the three months ended
December 31, 2009, an increase of $327 thousand or
26.6%. Contributing to the increase in noninterest income for the
three months ended December 31, 2010, were additional gains from the sale of
loans, as the Bancorp conducted a $5.1 million one-time sale of portfolio fixed
rate mortgage loans to reduce interest rate risk.
Noninterest
Expense
Noninterest
expense related to operating activities totaled $19.3 million for 2010, compared
to $18.7 million for 2009, an increase of $606 thousand or 3.2%. For
the three months ended December 31, 2010, noninterest expense totaled $5.0
million, compared to $4.5 million for the three months ended December 31, 2009,
an increase of $541 thousand or 12.1%. Noninterest expense for 2010
and the three-month period ended December 31, 2010 was impacted by increased
compensation and occupancy costs related to the opening of the St. John Banking
Center in October 2010. Also, during the current quarter, additional
expense was incurred related to a decline in appraised value for a property held
for future banking center expansion.
Funding
At
December 31, 2010, core deposits totaled $321.8 million, an increase of $8.2
million compared to December 31, 2009. Core deposits include
checking, savings, and money market accounts and represented 61.9% of the
Bancorp’s total deposits at December 31, 2010. As a result of core
deposit growth and increased liquidity from mortgage loan sales, management
implemented pricing strategies to decrease certificate of deposit balances by
$28.4 million, during 2010, which had a positive impact of lowering the
Bancorp’s cost of funds. At December 31, 2010, borrowings and
repurchase agreements totaled $48.6 million, a decrease of $14.4 million from
December 31, 2009, as excess liquidity was also used to repay
borrowings.
Lending
The
Bancorp’s lending portfolio totaled $418.2 million at December 31, 2010, a
decrease of $40.0 million, compared to December 31, 2009. During
2010, commercial real estate loans increased by $6.2
million. Mortgage loans decreased by $31.6 million during 2010 as a
result of planned sales of fixed rate loans into the secondary market, which
improved the Bancorp’s interest rate risk position. In addition,
construction and land development, as well as commercial business, government
and consumer loans, decreased by $14.6 million during 2010.
Asset
Quality
Non-performing
loans totaled $24.1 million at December 31, 2010, compared to $18.6 million at
December 31, 2009. The increase is primarily related to one $4.3
million commercial real estate participation loan that was placed on nonaccrual
status during the third quarter of 2010. The current level of
non-performing loans is concentrated with five geographically diverse commercial
real estate participation loans that aggregate to $14.5 million. These
participations were purchased from other originators in the period from 2005
through 2007 prior to the most recent recession. The Bancorp’s ratio
of non-performing loans to total assets was 3.82% at December 31, 2010, compared
to 2.80% at December 31, 2009.
For 2010,
loan loss provisions totaled $5.6 million, while $8.5 million in provisions were
recorded for 2009. The current year loan loss provisions were related
to continued elevated credit risk in the commercial real estate, commercial
business and mortgage loan portfolios. For the three months ended
December 31, 2010, loan loss provisions totaled $1.5 million, while $2.1 million
in provisions were recorded for the three months ended December 31,
2009. Loan charge-offs, net of recoveries, totaled $2.6 million for
2010, compared to $8.3 million for 2009. At December 31, 2010, the
allowance for loan losses totaled $9.1 million and is considered adequate by
management. The allowance for loan losses as a percentage of total
loans was 2.18% at December 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.
“The
stress in our loan participations does not reflect systemic weakness in our
entire loan portfolio. The Bank’s loan portfolio is well diversified
with loan participations comprising only 6.9% of total loans. Management
constantly reviews the value of the underlying assets of each participation
loan, utilizing current appraisals, the cash flows from each enterprise, and the
value added through the personal guarantees and financial support of the
borrower,” Bochnowski noted.
Capital
Adequacy
At
December 31, 2010, shareholders’ equity stood at $56.1 million or 8.9% of total
assets. The Bancorp’s regulatory capital ratios at December 31, 2010
were 12.9% for total capital to risk-weighted assets, 11.7% for tier 1 capital
to risk-weighted assets and 8.5% for tier 1 capital to adjusted average
assets. At the end of 2010, capital levels for the Bancorp and Bank
were essentially the same. Under all regulatory capital requirements,
the Bancorp and Bank are considered well capitalized. The book value
of the Bancorp’s stock stood at $19.84 at the end of 2010.
“As the
Bank continues to grow, our efforts will remain focused on building value for
our customers and community. Whether our outreach is through new
locations or the added emphasis customers are placing on electronic banking
services, Peoples Bank will stay true to our long standing belief that community
banking is driven by relationships and not just transactions,” Bochnowski
said.
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, St. John, Schererville and Valparaiso, Indiana. The Bank’s
website, 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 in the financial services industry, including
on-going 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
|
|
Financial
Report
|
|
Key
Ratios
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Three
Months Ended
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Twelve
Months Ended
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||||||||||||||
|
December
31,
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December
31,
|
|||||||||||||||
|
(Unaudited)
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(Unaudited)
|
|||||||||||||||
|
2010
|
2009
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2010
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2009
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|||||||||||||
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Return
on equity
|
7.68 | % | 8.25 | % | 9.03 | % | 4.55 | % | ||||||||
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Return
on assets
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0.70 | % | 0.67 | % | 0.77 | % | 0.37 | % | ||||||||
|
Basic
earnings per share
|
$ | 0.40 | $ | 0.40 | $ | 1.83 | $ | 0.88 | ||||||||
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Diluted
earnings per share
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$ | 0.40 | $ | 0.40 | $ | 1.83 | $ | 0.88 | ||||||||
|
Yield
on loans
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5.34 | % | 5.42 | % | 5.39 | % | 5.50 | % | ||||||||
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Yield
on security investments
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3.26 | % | 3.96 | % | 3.45 | % | 4.11 | % | ||||||||
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Total
yield on earning assets
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4.72 | % | 5.05 | % | 4.84 | % | 5.16 | % | ||||||||
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Cost
of deposits
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0.58 | % | 1.02 | % | 0.71 | % | 1.31 | % | ||||||||
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Cost
of borrowings
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1.74 | % | 2.47 | % | 2.04 | % | 2.58 | % | ||||||||
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Total
cost of funds
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0.68 | % | 1.16 | % | 0.82 | % | 1.45 | % | ||||||||
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Net
interest margin - tax equivalent
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4.28 | % | 4.14 | % | 4.25 | % | 3.97 | % | ||||||||
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Noninterest
income / average assets
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0.96 | % | 0.73 | % | 0.86 | % | 0.84 | % | ||||||||
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Noninterest
expense / average assets
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3.07 | % | 2.66 | % | 2.89 | % | 2.80 | % | ||||||||
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Net
noninterest margin / average assets
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-2.11 | % | -1.93 | % | -2.03 | % | -1.96 | % | ||||||||
|
Efficiency
ratio
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64.82 | % | 60.92 | % | 62.62 | % | 64.72 | % | ||||||||
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Effective
tax rate
|
10.32 | % | -38.89 | % | 13.34 | % | -48.50 | % | ||||||||
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Dividend
declared per common share
|
$ | 0.15 | $ | 0.21 | $ | 0.72 | $ | 1.21 | ||||||||
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December
31,
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||||||||||||||||
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2010
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December
31,
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|||||||||||||||
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(Unaudited)
|
2009
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|||||||||||||||
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Net
worth / total assets
|
8.89 | % | 8.03 | % | ||||||||||||
|
Book
value per share
|
$ | 19.84 | $ | 18.83 | ||||||||||||
|
Non-performing
loans to total assets
|
3.82 | % | 2.80 | % | ||||||||||||
|
Non-performing
loans to total loans
|
5.77 | % | 4.05 | % | ||||||||||||
|
Allowance
for loan loss to non-performing loans
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37.82 | % | 32.93 | % | ||||||||||||
|
Allowance
for loan loss to loans outstanding
|
2.18 | % | 1.33 | % | ||||||||||||
|
Foreclosed
real estate to total assets
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0.52 | % | 0.57 | % | ||||||||||||
|
Consolidated
Statements of Income
|
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||||||
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(Dollars
in thousands)
|
December
31,
|
December
31,
|
||||||||||||||
|
(Unaudited)
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(Unaudited)
|
|||||||||||||||
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2010
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2009
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2010
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2009
|
|||||||||||||
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Interest
income:
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||||||||||||||||
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Loans
|
$ | 5,683 | $ | 6,303 | $ | 24,051 | $ | 25,989 | ||||||||
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Securities
& short-term investments
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1,465 | 1,554 | 6,035 | 6,200 | ||||||||||||
|
Total
interest income
|
7,148 | 7,857 | 30,086 | 32,189 | ||||||||||||
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Interest
expense:
|
||||||||||||||||
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Deposits
|
779 | 1,396 | 3,914 | 7,083 | ||||||||||||
|
Borrowings
|
216 | 374 | 1,075 | 1,758 | ||||||||||||
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Total
interest expense
|
995 | 1,770 | 4,989 | 8,841 | ||||||||||||
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Net
interest income
|
6,153 | 6,087 | 25,097 | 23,348 | ||||||||||||
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Provision
for loan losses
|
1,450 | 2,050 | 5,570 | 8,540 | ||||||||||||
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Net
interest income after provision for loan losses
|
4,703 | 4,037 | 19,527 | 14,808 | ||||||||||||
|
Noninterest
income:
|
||||||||||||||||
|
Fees
& service charges
|
642 | 657 | 2,538 | 2,661 | ||||||||||||
|
Gain
on sale of loans, net
|
657 | 107 | 1,263 | 1,139 | ||||||||||||
|
Wealth
management operations
|
278 | 261 | 1,165 | 933 | ||||||||||||
|
Gain
on sale of securities, net
|
59 | 299 | 913 | 736 | ||||||||||||
|
Cash
value increase from bank owned life insurance
|
97 | 101 | 403 | 407 | ||||||||||||
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Other-than-temporary
impairment of securities
|
- | (378 | ) | 29 | (523 | ) | ||||||||||
|
Portion
of loss recognized in other comprehensive income
|
- | 286 | (157 | ) | 387 | |||||||||||
|
Loss
on foreclosed real estate
|
(181 | ) | (103 | ) | (381 | ) | (161 | ) | ||||||||
|
Other
income
|
5 | - | 17 | 23 | ||||||||||||
|
Total
noninterest income
|
1,557 | 1,230 | 5,790 | 5,602 | ||||||||||||
|
Noninterest
expense:
|
||||||||||||||||
|
Compensation
& benefits
|
2,306 | 2,285 | 9,599 | 9,346 | ||||||||||||
|
Occupancy
& equipment
|
624 | 578 | 3,010 | 2,893 | ||||||||||||
|
Federal
deposit insurance premiums
|
223 | 241 | 950 | 1,227 | ||||||||||||
|
Data
processing
|
242 | 219 | 941 | 871 | ||||||||||||
|
Marketing
|
156 | 101 | 485 | 469 | ||||||||||||
|
Other
|
1,447 | 1,033 | 4,356 | 3,929 | ||||||||||||
|
Total
noninterest expense
|
4,998 | 4,457 | 19,341 | 18,735 | ||||||||||||
|
Income
before income taxes
|
1,262 | 810 | 5,976 | 1,675 | ||||||||||||
|
Income
tax expenses
|
130 | (315 | ) | 797 | (813 | ) | ||||||||||
|
Net
income
|
$ | 1,132 | $ | 1,125 | $ | 5,179 | $ | 2,488 | ||||||||
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NorthWest
Indiana Bancorp
|
|
Financial
Report
|
|
Balance
Sheet Data
|
||||||||||||||||
|
(Dollars
in thousands)
|
December
31,
|
|||||||||||||||
|
2010
|
December
31,
|
Change
|
Mix
|
|||||||||||||
|
(unaudited)
|
2009
|
%
|
%
|
|||||||||||||
|
Total
assets
|
$ | 631,053 | $ | 661,806 | -4.6 | % | ||||||||||
|
Cash
& cash equivalents
|
10,938 | 13,222 | -17.3 | % | ||||||||||||
|
Securities
- available for sale
|
142,055 | 124,776 | 13.8 | % | ||||||||||||
|
Securities
- held to maturity
|
18,397 | 19,557 | -5.9 | % | ||||||||||||
|
Loans
receivable:
|
||||||||||||||||
|
Construction
and land development
|
46,371 | 53,288 | -13.0 | % | 11.1 | % | ||||||||||
|
1-4
first liens
|
127,959 | 155,937 | -17.9 | % | 30.6 | % | ||||||||||
|
Multifamily
|
7,605 | 9,165 | -17.0 | % | 1.8 | % | ||||||||||
|
Commercial
real estate
|
138,506 | 132,278 | 4.7 | % | 33.1 | % | ||||||||||
|
Commercial
business
|
61,726 | 63,099 | -2.2 | % | 14.8 | % | ||||||||||
|
1-4
Junior Liens
|
2,434 | 3,227 | -24.6 | % | 0.6 | % | ||||||||||
|
HELOC
|
19,325 | 22,264 | -13.2 | % | 4.6 | % | ||||||||||
|
Lot
loans
|
3,164 | 3,010 | 5.1 | % | 0.7 | % | ||||||||||
|
Consumer
|
763 | 1,504 | -49.3 | % | 0.2 | % | ||||||||||
|
Government
and other
|
10,380 | 14,473 | -28.3 | % | 2.5 | % | ||||||||||
|
Total
loans
|
418,233 | 458,245 | -8.7 | % | 100.0 | % | ||||||||||
|
Core
deposits:
|
||||||||||||||||
|
Noninterest
bearing checking
|
50,712 | 42,390 | 19.6 | % | 9.8 | % | ||||||||||
|
Interest
bearing checking
|
90,984 | 102,287 | -11.1 | % | 17.5 | % | ||||||||||
|
Savings
|
65,146 | 56,920 | 14.5 | % | 12.5 | % | ||||||||||
|
MMDA
|
114,983 | 112,071 | 2.6 | % | 22.1 | % | ||||||||||
|
Total
core deposits
|
321,825 | 313,668 | 2.6 | % | 61.9 | % | ||||||||||
|
Certificates
of deposit
|
198,446 | 226,859 | -12.5 | % | 38.1 | % | ||||||||||
|
Total
deposits
|
520,271 | 540,527 | -3.7 | % | 100.0 | % | ||||||||||
|
Borrowings and
repurchase agreements
|
48,619 | 63,022 | -22.9 | % | ||||||||||||
|
Stockholder's
equity
|
56,089 | 53,078 | 5.7 | % | ||||||||||||
|
Asset
Quality
|
December
31,
|
|||||||||||||||
|
(Dollars
in thousands)
|
2010
|
December
31,
|
Change
|
|||||||||||||
|
(unaudited)
|
2009
|
%
|
||||||||||||||
|
Nonaccruing
loans
|
$ | 23,967 | $ | 17,074 | 40.4 | % | ||||||||||
|
Accruing
loans delinquent more than 90 days
|
148 | 1,491 | -90.1 | % | ||||||||||||
|
Securities
in non-accrual
|
742 | 704 | 5.4 | % | ||||||||||||
|
Foreclosed
real estate
|
3,298 | 3,747 | -12.0 | % | ||||||||||||
|
Total
nonperforming assets
|
28,155 | 23,016 | 22.3 | % | ||||||||||||
|
Allowance
for loan losses (ALL):
|
||||||||||||||||
|
ALL
specific allowances for impaired loans
|
2,794 | 1,179 | 137.0 | % | ||||||||||||
|
ALL
general allowances for loan portfolio
|
6,327 | 4,935 | 28.2 | % | ||||||||||||
|
Total
ALL
|
9,121 | 6,114 | 49.2 | % | ||||||||||||
|
At
December 31, 2010
|
||||||||||||||||
|
Capital
Adequacy
|
Actual
|
Required
to be
|
||||||||||||||
|
Ratio
|
well
capitalized
|
|||||||||||||||
|
Total
capital to risk-weighted assets
|
12.9 | % | 10.0 | % | ||||||||||||
|
Tier
1 capital to risk-weighted assets
|
11.7 | % | 6.0 | % | ||||||||||||
|
Tier
1 capital to adjusted average assets
|
8.5 | % | 5.0 | % | ||||||||||||