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FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION
|April 29, 2020||CONTACT BENJAMIN BOCHNOWSKI|
NORTHWEST INDIANA BANCORP
ANNOUNCES EARNINGS FOR THE THREE MONTHS ENDED
MARCH 31, 2020
Munster, Indiana - NorthWest Indiana Bancorp (the “Bancorp” or “NWIN”), the holding company for Peoples Bank SB (the “Bank”), reported net income of $3.2 million, or $0.92 per share, for the first three months of 2020. Net income for the three months ended March 31, 2020, increased by $970 thousand (43.7%), from the three months ended March 31, 2019, primarily due to higher non-interest income and lower non-interest expense. For the first three months of 2020, the return on average assets (ROA) was 0.97% and the return on average equity (ROE) was 9.38%.
During the three months ended March 31, 2020, total assets increased by $21.2 million (1.6%), with interest-earning assets increasing by $16.8 million (1.4%) from December 31, 2019. Earning assets represented 91.8% of total assets at March 31, 2020, and 92.0% of total assets at December 31, 2019. The increase in total assets and interest earning assets for the three months was primarily the result of increased investment in securities and loans.
Benjamin Bochnowski, president and chief executive officer, commented: “The COVID-19 pandemic is an unprecedented challenge for the global economy, and we are acutely aware of how it has impacted our customers and the communities we serve. The health and wellbeing of our employees and communities are our top priorities, and guide our decision-making process during the crisis. Additionally, as we continue to respond to the crisis, our primary goals are stability of operations and managing risk for when we all start to emerge from this crisis. We have been actively partnering with our customers to help them weather this storm. I am immensely proud of our employees for continuing to deliver on our mission for our customers and communities under stressful and ever-changing conditions. In this regard, the Bancorp has taken numerous actions to assist our borrowers, depositors, employees, and the communities in which we operate. The skill and dedication of our employees and management team, experience, and successful implementation of our business continuity plans, as well as our strong balance sheet and capital positions, have helped us prepare for these extraordinary times. The Bancorp is stronger as a result of these efforts, and we are positioned to navigate these uncertain economic conditions, serve our customers, and execute our long-term strategy."
Bochnowski added, “There is no doubt that the COVID-19 crisis had an impact on the Bank’s earnings and profitability, but nevertheless we feel that we are well positioned for the rest of the year. Falling interest rates pushed down the top end of the net interest margin, impacting the profitability of our lending business and interest income more generally. Credit costs, including a larger loan loss provision, similarly ate into earnings. There was also opportunity cost as we worked with several at-risk borrowers, such as those who depend on in-person transactions, as we temporarily modified the terms of their loans to help them get through the crisis. However, there were bright spots, and the design of our business model helped us stay profitable even when our core business was stressed. Mortgage origination income was very strong, primarily driven by refinance activity. Our Wealth Management operations stayed strong despite falling market values, as our customers are well diversified and the group has significant work in trust administration. Retail banking adjusted to difficult conditions, and actually grew core accounts while managing cost of funds down. Our participation in the Paycheck Protection Program was an unqualified success for our customers, our community, and the Bank, and will result in additional income over the life of the loans. Finally, circumstances accelerated the implementation of important parts of our strategic plan, driving efficiency and mobility across the organization.”
He continued: “Like many financial institutions, capital is at the forefront. We had solid credit quality going into this crisis, and while we expect credit stress like the rest of the industry, feel well prepared for what will come. Earnings have grown significantly since the Great Recession, and that has allowed us to take additional provision in recognition of what is happening in the economy. Additionally, a capital-minded dividend policy has allowed us to grow our capital base and book value over the past decade, and earnings and capital should support the continued payment of the company’s dividend at current levels.”
The following information was filed by Northwest Indiana Bancorp (NWIN) on Wednesday, April 29, 2020 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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