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|FOR IMMEDIATE RELEASE||FOR FURTHER INFORMATION|
|October 27, 2020||CONTACT BENJAMIN BOCHNOWSKI|
NORTHWEST INDIANA BANCORP
ANNOUNCES EARNINGS FOR THE QUARTER AND NINE MONTHS ENDED
SEPTEMBER 30, 2020
Munster, Indiana - NorthWest Indiana Bancorp (the “Bancorp” or “NWIN”), the holding company for Peoples Bank (the “Bank”), reported record net income of $13.2 million, or $3.80 per share, for the nine months ended September 30, 2020. Net income for the nine months ended September 30, 2020, increased by $3.3 million (34.0%), from the nine months ended September 30, 2019, primarily due to higher net interest income and noninterest income. For the first nine months of 2020, the return on average assets (ROA) was 1.25% and the return on average equity (ROE) was 12.43%.
For the quarter ended September 30, 2020, the Bancorp’s net income totaled $4.9 million, or $1.42 per share. Net income for the quarter ended September 30, 2020, increased by $1.3 million (37.0%), from the quarter ended September 30, 2019, primarily due to higher net interest income and noninterest income. For the quarter ended September 30, 2020, the ROA was 1.33% and the ROE was 13.42%.
During the nine months ended September 30, 2020, total assets increased by $152.3 million (11.5%), with interest-earning assets increasing by $158.0 million (12.9%). On September 30, 2020, interest-earning assets totaled $1.4 billion compared to $1.2 billion at December 31, 2019. Earning assets represented 93.2% of total assets at September 30, 2020, and 92.0% of total assets at December 31, 2019. The increase in total assets and interest earning assets for the nine months ended September 30, 2020, was primarily the result of involvement in the U.S. Small Business Administration’s Paycheck Protection Program (PPP), and increased cash balances related to strong core deposit growth.
“Peoples Bank again showed strong performance in the third quarter of 2020. While COVID-19 continues to stress the economy nationally, our local markets have remained strong, and we have been able to pivot toward where our customers want to be right now. Our capital position and flexibility with technology allows us to continue to serve our customers while they focus on the recovery. As a business, we have designed our income streams to be resilient in the face of any challenge. Our noninterest income continues to be strong, and we have been able to capture much of the increased mortgage loan demand in the local market. Our efforts with the PPP have likewise borne fruit, with roughly 20% of our PPP relationships as new customers to the Bank. Those loans are now starting the forgiveness process, we will start to recognize even more fee income as these loans are forgiven. Roughly half of our PPP loans fall within the SBA’s accelerated forgiveness guidelines. We are prepared for the future, and we are optimistic for our prospects while we all continue to cope with effects of COVID-19. I remain incredibly proud of our team for their ability to respond and adapt to the situation, while continuing to support our mission of helping our customers and communities be more successful,” said Benjamin Bochnowski, president & chief executive officer.
“The Bancorp’s strong earnings for the first nine months of 2020 is a result of continued growth in our net interest income and noninterest income. Net interest income was positively impacted by higher commercial loan and securities balances, and a lower cost of funds as core deposits grew by 20.4%. In the current low interest rate environment, management has maintained a disciplined loan pricing policy, while actively lowering its cost of funds by using core deposits to reduce its reliance on higher cost certificates of deposit and borrowings. Noninterest income has increased by 65.3% for the current nine-month period. The increase was driven by a 213.6% increase in the value of mortgages originated, which were sold into the secondary market for a net gain of $6.0 million. The Bancorp’s strong financial performance resulted in an efficiency ratio of 62.6% for the nine month period,” said Robert Lowry, chief financial officer.
“As we continue to operate in the COVID-19 environment, the Bancorp’s management team continues to focus on effectively managing credit and operational risks related to the pandemic. COVID-19 related loan modifications and deferrals decreased to approximately 1.3% of our loan portfolio as of September 30, 2020. As the allowance for loan losses qualitative risk factors have increased, management increased its 2020 loan loss provisions by 41.5%, compared to the same period during 2019. The Bancorp’s strong earnings continue to create capital to support its strategic initiatives. In addition, all regulatory capital measures are considered well capitalized. At September 30, 2020, the Bancorp’s Tier 1 capital to adjusted assets was 8.3%,” said Lowry.
The following information was filed by Northwest Indiana Bancorp (NWIN) on Tuesday, October 27, 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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