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|FOR IMMEDIATE RELEASE||FOR FURTHER INFORMATION|
|April 23, 2019||CONTACT BENJAMIN BOCHNOWSKI|
NORTHWEST INDIANA BANCORP
ANNOUNCES EARNINGS FOR THE THREE MONTHS ENDED
MARCH 31, 2019
Munster, Indiana - NorthWest Indiana Bancorp (the “Bancorp” or “NWIN”), the holding company for Peoples Bank SB (the “Bank”), reported net income of $2.2 million, or $0.66 per share, for the first three months of 2019. In connection with the successful acquisition of AJS Bancorp, Inc., (“AJSB”), which closed on January 24, 2019, the Bancorp incurred one-time expenses of approximately $2.1 million, as expansion into the Chicagoland market continued. Net income for the three months ended March 31, 2019, decreased by $339 thousand (13.2%), from the three months ended March 31, 2018, primarily due to one-time expenses associated with the acquisition of AJSB. In addition to the acquisition of AJSB, on July 26, 2018, the Bancorp completed its acquisition of First Personal Financial Corp., (“First Personal”). For the first three months of 2019, the return on average assets (ROA) was 0.72% and the return on average equity (ROE) was 7.59%. At March 31, 2019, the Bancorp’s assets totaled $1.3 billion, an increase of $172.2 million (15.7%), from $1.1 billion at December 31, 2018.
Excluding the one-time AJSB acquisition costs, the Bancorp’s net income, as adjusted, was $4.1 million, or $1.21 per share, for the first three months of 2019. Excluding these same one-time AJSB acquisition costs, the Bancorp’s ROA, as adjusted, was 1.32% and its ROE, as adjusted, was 13.84% for the first quarter of 2019. See Table 1 below for a reconciliation of these non-GAAP figures to the Bancorp’s GAAP figures.
“The first quarter of 2019 was a solid start to the year, driven by both organic and inorganic growth. We successfully closed our merger with AJS Bancorp, Inc. and its wholly owned subsidiary A.J. Smith Federal Saving Bank, and also saw the results of strong loan demand in our core markets of Northwest Indiana and South Suburban Chicagoland,” said Benjamin Bochnowski, president and chief executive officer. “We have grown our balance sheet significantly over the past two years, and the company is seeing the benefits of economies of scale. When you adjust earnings for acquisition expenses, the Bank shows very strong earnings. This is the result of years of planning and execution by a skilled and dedicated team.”
“Integration of operations with AJSB is underway, and is expected to be completed by the end of May 2019. The majority of acquisition-related expenses were recognized in Q1 2019, and remaining expenses should be recognized by the end of Q2 2019. We have gained significant experience as an acquirer, and we have used that expertise to successfully execute our strategy. Our market area now reaches 65 miles end-to-end, and our growth allows us to deliver better banking to our customers,” continued Bochnowski.
“Acquisition expenses for the AJSB merger had a significant impact on the Bancorp’s first quarter net income. For the first three months of 2019, approximately $2.1 million in acquisition related expenses have been incurred. Excluding the acquisition related expenses, the Bancorp’s net income for the three months ended March 31, 2019, increased by 58.3% compared to the same period in 2018,” said Robert Lowry, chief financial officer. See Table 1 below for a reconciliation of these non-GAAP figures to the Bancorp’s GAAP net income.
“As a result of the management team’s recent strategic growth initiatives, the Bancorp’s primary earnings driver, net interest income, has increased by $2.8 million, or 35.3% for the first three months of 2019. In addition, at March 31, 2019, the Bancorp’s tier 1 capital to adjusted average assets was 8.5% after the AJSB merger. The Bancorp is well positioned for continued growth,” added Lowry.
Net Interest Income
Net interest income was $10.6 million, an increase of $2.8 million (35.3%), compared to $7.8 million for the quarter ended March 31, 2018. The Bancorp’s net interest margin on a tax-adjusted basis was 3.93% for the three months ended March 31, 2019, compared to 3.80% for the three months ended March 31, 2018. The increased net interest income was primarily the result of the acquisitions of AJSB and First Personal, as well as organic loan growth.
The following information was filed by Northwest Indiana Bancorp (NWIN) on Tuesday, April 23, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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