MUNSTER, Ind., Jan. 22, 2020 (GLOBE NEWSWIRE) -- NorthWest Indiana Bancorp (the “Bancorp” or “NWIN”), the holding company for Peoples Bank SB (the “Bank”), reported record net income of $12.1 million, or $3.53 per share for the twelve months ended December 31, 2019. Net income for the twelve months ended December 31, 2019, increased by $2.8 million (29.6%), from the twelve months ended December 31, 2018. For the twelve months ended December 31, 2019, the return on average assets (ROA) was 0.94% and the return on average equity (ROE) was 9.54%. 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.

Excluding the one-time AJSB acquisition costs, the Bancorp’s net income, as adjusted, was $13.9 million, or $4.07 per share, for the twelve months ended December 31, 2019. Excluding these same one-time AJSB acquisition costs, the Bancorp’s ROA, as adjusted, was 1.08% and its ROE, as adjusted, was 10.99% for 2019. See Table 1 below for a reconciliation of these non-GAAP figures to the Bancorp’s GAAP figures.

For the quarter ended December 31, 2019, the Bancorp’s net income totaled $2.3 million, or $0.66 per share. Net income for the quarter ended December 31, 2019, decreased by $366 thousand (13.9%), from the quarter ended December 31, 2018. For the fourth quarter of 2019, the ROA was 0.69% and the ROE was 6.83%.

During the twelve months ended December 31, 2019, total assets increased by $232.6 million (21.2%), with interest-earning assets increasing by $204.2 million (20.1%). At December 31, 2019, interest-earning assets totaled $1.2 billion compared to $1.0 billion at December 31, 2018. Earning assets represented 92.0% of total assets at December 31, 2019 and 92.9% of total assets at December 31, 2018. The increase in total assets and interest earning assets for the twelve months was primarily the result of the completion of the acquisition of AJSB, as well as organic growth.

“Northwest Indiana Bancorp is proud to announce another year of record earnings and one of the strongest year-over-year earnings increases in company history. Earnings were up 29.6% year-over-year, as we successfully integrated the second acquisition in our Illinois market entry strategy. The Bank effectively navigated a decreasing interest rate environment and took advantage of continued expanding economic conditions throughout the year,” said Benjamin Bochnowski, president and chief executive officer. “We continued to redeploy liquidity into relationship-driven commercial loans. We also acted on opportunities to improve asset quality, and continue to execute on efficiency strategies that support scaling operations and enhance customer service,” added Bochnowski. “Additionally, we are excited to celebrate our 110 year tradition of community banking this January. We have had the sincere honor of serving our customers and communities for over a century. As we continue to grow, we are committed to service and excellence for the long term,” he added.

“The 2019 annual record earnings were driven by net interest income, increasing 25.6%, and noninterest income, increasing 17.3%. The increase in net interest income is attributable to a strategy of growing the commercial loan portfolio organically and core deposits from the markets we serve. In addition, with the decline in market interest rates, the Bancorp’s management is actively managing the mix of its assets and liabilities, asset yields and funding costs to lessen the impact to the net interest margin. The increase in noninterest income benefited from continued expansion of mortgage banking, wealth management, and retail banking services,” said Robert Lowry, executive vice president and chief financial officer. “The increased earnings capacity and improved asset quality allows the Bancorp to create organic capital to execute on its strategic objectives. At the end of 2019, the Bancorp’s tangible capital ratio stood at 10.1%,” said Lowry.

Net Interest Income
Net interest income was $43.2 million for the twelve months ended December 31, 2019, an increase of $8.8 million (25.6%), compared to $34.4 million for the twelve months ended December 31, 2018. The Bancorp’s net interest margin on a tax-adjusted basis was 3.73% for the twelve months ended December 31, 2019, compared to 3.81% for the twelve months ended December 31, 2018. The increased net interest income for the twelve months was primarily the result of the acquisitions of AJSB and First Personal Financial Corp. (“First Personal”), organic loan growth, and the recognition of one-time gains from excess reserves associated with purchase credit impaired loans from the former acquisitions of First Federal Savings & Loan Association of Hammond and Liberty Savings Bank. The one-time gains totaled $429 thousand and were the result of being able to work out purchase credit impaired loans with better results than were originally anticipated at the time of acquisition. Net interest income was $10.6 million for the quarter ended December 31, 2019, an increase of $932 thousand (9.7%), compared to $9.6 million for the quarter ended December 31, 2018. The Bancorp’s net interest margin on a tax-adjusted basis was 3.53% for the quarter ended December 31, 2019, compared to 3.96% for the quarter ended December 31, 2018. The Bancorp’s lower net interest margin was impacted by the lower interest rate environment and increased balance sheet liquidity.    

Noninterest Income
Noninterest income from banking activities totaled $10.7 million for the twelve months ended December 31, 2019, compared to $9.1 million for the twelve months ended December 31, 2018, an increase of $1.6 million or 17.3%. Noninterest income from banking activities totaled $2.5 million for the quarter ended December 31, 2019, compared to $2.2 million for the quarter ended December 31, 2018, an increase of $311 thousand or 14.0%. The increase in noninterest income for the twelve months and the quarter is the result of the Bancorp’s continued focus on competitively pricing its banking services as well as increasing mortgage banking and wealth management activities. The increase in the cash value of bank owned life insurance income was primarily the result of cash surrender value appreciation related to the policies acquired through AJSB and First Personal. The increase in other noninterest income was primarily the result of gains made on the sale of fixed assets.

Noninterest Expense
Noninterest expense totaled $37.4 million for the twelve months ended December 31, 2019, compared to $31.4 million for the twelve months ended December 31, 2018, an increase of $6.0 million or 19.1%. Noninterest expense totaled $9.4 million for the quarter ended December 31, 2019, compared to $8.5 million for the quarter ended December 31, 2018, an increase of $953 thousand or 11.3%. For the twelve months ended December 31, 2019, one-time expenses of $2.1 million have been incurred in connection with the acquisition of AJSB. The increase in compensation and benefits for the twelve months and the quarter ended December 31, 2019, is primarily the result of increased compensation due to the acquisition of AJSB. Additionally, increases to compensation and benefits can be attributed to management’s continued focus on talent management and retention. The increase in occupancy and equipment for the twelve months ended December 31, 2019, is primarily related to the AJSB acquisition and the procurement of related assets. The increase in data processing expense for the twelve months ended December 31, 2019, was primarily related to the costs associated with data conversion for the acquisition of AJSB and increased system utilization. The increase in marketing expense for the twelve months ended December 31, 2019, is a result of the acquisition of AJSB as well as the Bancorp’s regular marketing initiatives. The decrease in federal deposit insurance premiums for the twelve months ended December 31, 2019, is the result of the application of the Small Bank Assessment Credit that was applied to the second and third quarter assessment periods. The increase in other operating expenses was primarily related to the acquisition of AJSB.

The Bancorp’s efficiency ratio was 69.46% for the twelve months ended December 31, 2019, compared to 72.21% for the twelve months ended December 31, 2018. Excluding the one-time acquisition expenses associated with the AJSB transaction, the efficiency ratio would have further decreased to 65.53% for the twelve months ended December 31, 2019. See Table 1 below for a reconciliation of the non-GAAP figure to the Bancorp’s GAAP efficiency ratio. The efficiency ratio is determined by dividing total noninterest expense by the sum of net interest income and total noninterest income for the period. The Bancorp’s efficiency ratio was 71.81% for the quarter ended December 31, 2019, compared to 71.30% for the quarter ended December 31, 2018.

Lending
The Bancorp’s loan portfolio totaled $906.9 million at December 31, 2019, compared to $764.4 million at December 31, 2018, an increase of $142.5 million or 18.6%. The increase is the result of the acquisition of AJSB, as well as organic loan portfolio growth net of loan payoffs. During the twelve months ended December 31, 2019, the Bancorp originated $249.9 million in new commercial loans. During the twelve months ended December 31, 2019, the Bancorp originated $74.9 million in new fixed rate mortgage loans for sale, compared to $55.5 million during the twelve months ended December 31, 2018. The loan portfolio represents 74.2% of earning assets and is comprised of 57.9% commercial related credits.

Investing
The Bancorp’s securities portfolio totaled $277.2 million at December 31, 2019, compared to $241.8 million at December 31, 2018, an increase of $35.5 million or 14.7%. The securities portfolio represents 22.7% of earning assets and provides a consistent source of liquidity and earnings to the Bancorp. Cash and cash equivalents totaled $47.3 million at December 31, 2019, compared to $17.1 million at December 31, 2018, an increase of $30.1 million or 175.7%. The increase in cash and cash equivalents is the result of the acquisition of AJSB, strong demand for deposit products and payments from the loan portfolio. 

Funding
At December 31, 2019, core deposits totaled $826.7 million, compared to $670.9 million at December 31, 2018, an increase of $155.8 million or 23.2%. The increase is the result of the acquisition of AJSB as well as the Bancorp’s efforts to maintain core deposits. Core deposits include checking, savings, and money market accounts and represented 71.6% of the Bancorp’s total deposits at December 31, 2019. The increase in these core deposits is a result of the AJSB acquisition, and management’s sales efforts along with customer preferences for competitively priced short-term deposits. At December 31, 2019, balances for certificates of deposit totaled $327.7 million, compared to $258.9 million at December 31, 2018, an increase of $68.8 million or 26.6%. In addition, at December 31, 2019, borrowings and repurchase agreements totaled $25.5 million, compared to $54.6 million at December 31, 2018, a decrease of $29.1 million or 53.3%. The decrease in short-term borrowings was a result of FHLB advance maturities. 

Asset Quality
At December 31, 2019, non-performing loans totaled $7.4 million, compared to $6.9 million at December 31, 2018, an increase of $457 thousand or 6.6%. The Bancorp’s ratio of non-performing loans to total loans was 0.81% at December 31, 2019, compared to 0.90% at December 31, 2018. The increase in the nonperforming loans for the twelve months ending December 31, 2019, is due primarily to the residential real estate loans received from the AJSB acquisition. The Bancorp’s ratio of non-performing assets to total assets was 0.72% at December 31, 2019, compared to 0.97% at December 31, 2018. The improvement in the non-performing assets ratio is related to management’s focus on improving asset quality. During 2019, securities in nonaccrual status decreased by 48% to $1.1 million and foreclosed real estate decreased by 33% to $1.1 million.      

For the twelve months ended December 31, 2019, $2.6 million in provisions to the ALL were required, compared to $1.3 million for the twelve months ended December 31, 2018, an increase of $1.3 million or 97.6%. For the twelve months ended December 31, 2019, charge-offs, net of recoveries, totaled $1.5 million. At December 31, 2019, the allowance for loan losses totaled $9.0 million and is considered adequate by management. During the three months ended December 31, 2019, net charge-offs of $1.4 million were recorded. Included in the $1.4 million, was a charge-off of $965 thousand to one commercial and industrial borrower with two loans. The Bancorp’s increased earnings level was able to adequately provide for the additional 2019 provisions to the ALL. The allowance for loan losses as a percentage of total loans was 0.99% at December 31, 2019, compared to 1.04% at December 31, 2018. The allowance for loan losses as a percentage of non-performing loans, or coverage ratio, was 121.8% at December 31, 2019, compared to 115.1% at December 31, 2018.

Management also considers reserves that are not part of the ALL that have been established from acquisition activity. The Bancorp acquired loans for which there was evidence of credit quality deterioration since origination and it was determined that it was probable that the Bancorp would be unable to collect all contractually required principal and interest payments. At December 31, 2019, total purchase credit impaired loan accretable and nonaccretable discount totaled $2.2 million compared to $3.1 million at December 31, 2018. Additionally, the Bancorp has acquired loans where there was no evidence of credit quality deterioration since origination and has marked these loans to their fair values. As part of the fair value of loans receivable, a net fair value discount was established for loans acquired and totaled $3.8 million at December 31, 2019, compared to $1.5 million at December 31, 2018. The increase in the fair value discount and purchase credit impaired discounts, as of December 31, 2019, is the result of the AJSB acquisition. When these additional reserves are included on a proforma basis, the allowance for loan losses as a percentage of total loans was 1.66% at December 31, 2019, and the allowance for loan losses as a percentage of non-performing loans, or coverage ratio, was 203.56% at December 31, 2019. See Table 1 below for a reconciliation of these non-GAAP figures to the Bancorp’s GAAP figures.

Capital Adequacy
At December 31, 2019, shareholders’ equity stood at $134.1 million, and tangible capital represented 10.1% of total assets. The Bancorp’s regulatory capital ratios at December 31, 2019, were 12.7% for total capital to risk-weighted assets, 11.8% for both common equity tier 1 capital to risk-weighted assets and tier 1 capital to risk-weighted assets, and 8.5% for tier 1 leverage 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 $38.85 per share at December 31, 2019.

About NorthWest Indiana Bancorp
NorthWest Indiana Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 22 locations in Lake and Porter Counties in Northwest Indiana and South Chicagoland. NorthWest Indiana Bancorp’s common stock is quoted on the OTC Pink Marketplace and the OTC Bulletin Board under the symbol NWIN. The website ibankpeoples.com provides information on Peoples Bank’s products and services, and NorthWest Indiana Bancorp’s investor relations.

Forward Looking Statements
This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of NWIN. For these statements, NWIN claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this communication should be considered in conjunction with the other information available about NWIN, including the information in the filings NWIN makes with the SEC. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Forward-looking statements are typically identified by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: difficulties and delays in fully realizing cost savings and other benefits from the AJSB acquisition; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer acceptance of NWIN’s products and services; customer borrowing, repayment, investment, and deposit practices; customer disintermediation; the introduction, withdrawal, success, and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; economic conditions; and the impact, extent, and timing of technological changes, capital management activities, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms.

Disclosure Regarding Non-GAAP Measures
This document refers to certain financial measures that are identified as non-GAAP. The Bancorp believes that the non-GAAP measures are helpful to investors to compare normalized, integral operations of the Bancorp removed from one-time events such as purchase accounting impacts and cost of acquisition. This supplemental information should not be considered in isolation or as a substitute for the related GAAP measures. See the attached Table 1 at the end of this press release for a reconciliation of the non-GAAP earnings measures identified herein and their most comparable GAAP measures.

 
NorthWest Indiana Bancorp
Financial Report
        
Key RatiosThree Months Ended Twelve Months Ended
 December 31,   December 31,  
 2019 December 31, 2019 December 31,
 (Unaudited) 2018 (Unaudited) 2018
Return on equity 6.83%   10.96%   9.54%   9.88% 
Return on assets 0.69%   0.97%   0.94%   0.93% 
Basic earnings per share$0.66  $0.86  $3.53  $3.17 
Diluted earnings per share$0.66  $0.86  $3.53  $3.17 
Yield on loans 4.91%   5.02%   5.07%   4.71% 
Yield on security investments 2.49%   2.94%   2.64%   2.86% 
Total yield on earning assets 4.28%   4.51%   4.43%   4.22% 
Cost of deposits 0.81%   0.56%   0.75%   0.45% 
Cost of repurchase agreements 1.57%   1.50%   1.80%   1.38% 
Cost of borrowings 2.61%   2.71%   2.67%   2.25% 
Total cost of funds 0.84%   0.72%   0.80%   0.57% 
Net interest margin - tax equivalent 3.53%   3.96%   3.73%   3.81% 
Noninterest income / average assets 0.76%   0.82%   0.83%   0.91% 
Noninterest expense / average assets 2.83%   3.10%   2.91%   3.13% 
Net noninterest margin / average assets -2.07%   -2.28%   -2.08%   -2.22% 
Efficiency ratio 71.81%   71.30%   69.46%   72.21% 
Effective tax rate 6.46%   13.30%   12.69%   13.28% 
Dividend declared per common share$0.31  $0.30   1.23  $1.19 
        
        
 December 31,      
 2019
 December 31,    
 (Unaudited) 2018
    
Net worth / total assets 10.09%   9.26%     
Book value per share$38.85  $33.50     
Non-performing assets to total assets 0.72%   0.97%     
Non-performing loans to total loans 0.81%   0.90%     
Allowance for loan losses to non-performing loans 122.05%   115.12%     
Allowance for loan losses to loans outstanding 0.99%   1.04%     
Foreclosed real estate to total assets 0.08%   0.15%     
        
                
Consolidated Statements of Income       
(Dollars in thousands)Three Months Ended Twelve Months Ended
 December 31,   December 31,  
 2019 December 31, 2019 December 31,
 (Unaudited) 2018 (Unaudited) 2018
Interest income:       
Loans$11,092  $9,589  $44,455  $32,392 
Securities & short-term investments 1,947   1,797   7,795   7,058 
Total interest income 13,039   11,386   52,250   39,450 
Interest expense:       
Deposits 2,323   1,268   8,359   3,799 
Borrowings 152   486   733   1,292 
Total interest expense 2,475   1,754   9,092   5,091 
Net interest income 10,564   9,632   43,158   34,359 
Provision for loan losses 1,262   358   2,584   1,308 
Net interest income after provision for loan losses 9,302   9,274   40,574   33,051 
Noninterest income:       
Fees and service charges 1,129   1,036   4,737   3,866 
Wealth management operations 489   443   1,915   1,696 
Gain on sale of loans held-for-sale, net 562   598   1,885   1,619 
Increase in cash value of bank owned life insurance (66)  45   688   494 
Gain on sale of securities, net 102   136   621   1,200 
Benefit from bank owned life insurance -   -   205   - 
Gain on sale of foreclosed real estate (5)  (100)  78   54 
Other 324   66   541   170 
Total noninterest income 2,535   2,224   10,670   9,099 
Noninterest expense:       
Compensation and benefits 5,284   4,367   19,617   16,412 
Occupancy and equipment 1,026   1,129   4,548   3,653 
Data processing 214   391   2,967   2,467 
Marketing 143   184   926   707 
Federal deposit insurance premiums 14   160   300   410 
Other 2,725   2,222   9,030   7,734 
Total noninterest expense 9,406   8,453   37,388   31,383 
Income before income taxes 2,431   3,045   13,856   10,767 
Income tax expenses 157   405   1,759   1,430 
Net income$2,274  $2,640  $12,097  $9,337 
        

 

  
NorthWest Indiana Bancorp 
Financial Report 
              
Balance Sheet Data        
(Dollars in thousands)        
 December 31,      
 2019  December 31,Change Mix
 (Unaudited)  2018 % %
Total assets$1,328,722  $1,096,158  21.2%  
Cash & cash equivalents 47,258   17,139  175.7%  
Securities - available for sale 277,219   241,768  14.7%  
         
Loans receivable:        
Construction and land development 87,710   64,433  36.1% 9.7%
1-4 first liens 299,333   223,323  34.0% 33.0%
Multifamily 51,286   47,234  8.6% 5.7%
Commercial real estate 283,108   253,104  11.9% 31.2%
Commercial business 103,088   103,439  -0.3% 11.4%
HELOC 49,181   45,483  8.1% 5.4%
Consumer 1,193   643  85.5% 0.1%
Manufactured Homes 15,939   5,400    1.8%
Farmland 227   240  -5.4% 0.0%
Government 15,804   21,101  -25.1% 1.7%
Total loans 906,869   764,400  18.6% 100.0%
         
Deposits:        
Core deposits:        
Noninterest bearing checking 172,094   127,277  35.2% 14.9%
Interest bearing checking 220,230   214,400  2.7% 19.1%
Savings 209,945   160,490  30.8% 18.2%
MMDA 224,398   168,727  33.0% 19.4%
Total core deposits 826,667   670,894  23.2% 71.6%
Certificates of deposit 327,703   258,892  26.6% 28.4%
Total deposits 1,154,370   929,786  24.2% 100.0%
         
Borrowings and repurchase agreements 25,499   54,628  -53.3%  
Stockholder's equity 134,103   101,464  32.2%  
         
         
Asset Quality        
(Dollars in thousands)December 31,       
 2019  December 31, Change  
 (Unaudited)   2018  %  
Nonaccruing loans$6,507  $6,595  -1.3%  
Accruing loans delinquent more than 90 days 866   321  169.8%  
Securities in non-accrual 1,076   2,050  -47.5%  
Foreclosed real estate 1,083   1,627  -33.4%  
Total nonperforming assets 9,532   10,593  -10.0%  
         
Allowance for loan losses (ALL):        
ALL specific allowances for impaired loans 165   246  -32.9%  
ALL general allowances for loan portfolio 8,834   7,716  14.5%  
Total ALL 8,999   7,962  13.0%  
         
Troubled Debt Restructurings:        
Nonaccruing troubled debt restructurings, non-compliant (1) (2) 163   -  0.0%  
Nonaccruing troubled debt restructurings, compliant (2) 161   125  28.8%  
Accruing troubled debt restructurings 1,776   1,906  -6.8%  
Total troubled debt restructurings 2,100   2,031  3.4%  
(1) "non-compliant" refers to not being within the guidelines of the restructuring agreement           
(2) included in nonaccruing loan balances presented above        
         
 At December 31, 2019     
 (Unaudited)     
Capital AdequacyActual  Required to be    
 Ratio  well capitalized(1)    
          
Capital Adequacy Bancorp         
Common equity tier 1 capital to risk-weighted assets 11.8% N/A    
Tier 1 capital to risk-weighted assets 11.8% N/A    
Total capital to risk-weighted assets 12.7% N/A    
Tier 1 capital to adjusted average assets 8.5% N/A    
          
Capital Adequacy Bank         
Common equity tier 1 capital to risk-weighted assets 11.6% 6.5%    
Tier 1 capital to risk-weighted assets 11.6% 8.0%    
Total capital to risk-weighted assets 12.5% 10.0%    
Tier 1 capital to adjusted average assets 8.3% 5.0%    
          
  

 

Quarter-to-Date           
(Dollars in thousands)Average Balances, Interest, and Rates
 December 31, 2019 December 31, 2018
 Average
Balance		 Interest Rate (%) Average
Balance		 Interest Rate (%)
ASSETS           
Interest bearing deposits in other financial institutions$34,426  $166 1.93 $1,008  $12 4.76
Federal funds sold 6,235   55 3.53  445   10 8.99
Certificates of deposit in other financial institutions 2,170   15 2.76  3,201   21 2.62
Securities available-for-sale 268,868   1,672 2.49  236,791   1,720 2.91
Securities held-to-maturity -    -  -    -
Loans receivable 904,011   11,092 4.91  759,730   9,589 5.05
Federal Home Loan Bank stock 3,912   39 3.99  3,331   34 4.08
Total interest earning assets 1,219,622  $13,039 4.28  1,004,506  $11,386 4.53
Cash and non-interest bearing deposits in other financial institutions 22,470       11,130     
Allowance for loan losses (9,310)      (7,798)    
Other noninterest bearing assets 94,418       79,316     
Total assets$1,327,200       $1,087,154      
                  
LIABILITIES AND STOCKHOLDERS' EQUITY                 
Total deposits$1,152,045  $2,323 0.81 $905,834  $1,268 0.56
Repurchase agreements 13,794   54 1.57  13,881   52 1.50
Borrowed funds 15,043   98 2.61  57,691   434 3.01
Total interest bearing liabilities 1,180,882  $2,475 0.84  977,406  $1,754 0.72
Other noninterest bearing liabilities 13,177       13,377     
Total liabilities 1,194,059       990,783     
Total stockholders' equity 133,141       96,371     
Total liabilities and stockholders' equity$1,327,200      $1,087,154     
            
            
Return on average assets 0.69%      0.97%    
Return on average equity 6.83%      10.96%    
Net interest margin (average earning assets) 3.46% $10,564    3.84% $9,632  
Net interest margin (average earning assets) - tax equivalent 3.53%      4.03%    
            
Year-to-Date           
(Dollars in thousands)Average Balances, Interest, and Rates
 December 31, 2019 December 31, 2018
 Average
Balance		 Interest Rate (%) Average
Balance		 Interest Rate (%)
ASSETS           
Interest bearing deposits in other financial institutions$33,502  $604 1.80 $3,394  $78 2.30
Federal funds sold 5,170   178 3.44  901   40 4.44
Certificates of deposit in other financial institutions 2,154   65 3.02  2,602   59 2.27
Securities available-for-sale 257,003   6,773 2.64  238,375   6,730 2.82
Loans receivable 876,611   44,455 5.07  684,159   32,392 4.73
Federal Home Loan Bank stock 3,899   175 4.49  3,131   151 4.82
Total interest earning assets 1,178,339  $52,250 4.43  932,562  $39,450 4.23
Cash and non-interest bearing deposits in other financial institutions 23,237       10,813     
Allowance for loan losses (8,660)      (7,512)    
Other noninterest bearing assets 93,048        66,045     
Total assets$1,285,964       $1,001,908     
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Total deposits$1,108,687  $8,359 0.75 $839,479  $3,799 0.45
Repurchase agreements 12,928   233 1.80  12,754   176 1.38
Borrowed funds 18,702   500 2.67  44,627   1,116 2.50
Total interest bearing liabilities 1,140,317  $9,092 0.80  896,860  $5,091 0.57
Other noninterest bearing liabilities 18,802       10,588     
Total liabilities 1,159,119       907,448     
Total stockholders' equity 126,845       94,460     
Total liabilities and stockholders' equity$1,285,964      $1,001,908     
            
            
Return on average assets 0.94%      0.93%    
Return on average equity 9.54%      9.88%    
Net interest margin (average earning assets) 3.66% $43,158    3.68% $34,359  
Net interest margin (average earning assets) - tax equivalent 3.73%      3.87%    
            

 

         
Table 1 - Reconciliation of the Non-GAAP Earnings and Performance Ratios     
         
   Twelve Months     
   Ended     
   December 31,     
($ in thousands)  2019
     
   (Unaudited)     
GAAP net Income  $12,097      
GAAP income tax expense   1,759      
GAAP income before income taxes   13,856      
One-time acquisition costs   2,113      
Pro forma income before income taxes   15,969      
Pro forma income taxes   2,027      
Pro forma net income  $13,942      
Pro forma net income change   49.3%  
      
($ in thousands, except per share data)(Unaudited) 
For the twelve months ended, December 31, 2019GAAP One-time
acquisition
costs - tax
effected		 Non-GAAP 
Net income$12,097  $1,845  $13,942  
Weighted average common shares outstanding 3,425,056     3,425,056  
Earnings per share$3.53    $4.07  
      
      
($ in thousands)(Unaudited) 
For the twelve months ended, December 31, 2019GAAP One-time
acquisition
costs - tax
effected		 Non-GAAP 
Net income$12,097  $1,845  $13,942  
Average assets$1,285,964    $1,285,964  
ROA 0.94%    1.08% 
      
      
($ in thousands)(Unaudited) 
For the twelve months ended, December 31, 2019GAAP One-time
acquisition
costs - tax
effected		 Non-GAAP 
Net income$12,097  $1,845  $13,942  
Average equity$126,845    $126,845  
ROE 9.54%    10.99% 
      
($ in thousands)(Unaudited) 
For the twelve months ended, December 31, 2019GAAP One-time
acquisition
costs		 Non-GAAP 
Noninterest expense 37,388   (2,113)  35,275  
Interest income 52,250     52,250  
Interest expense 9,092     9,092  
Noninterest income 10,670     10,670  
Efficiency ratio 69.46%    65.53% 
      
($ in thousands)(Unaudited) 
For the twelve months ended, December 31, 2019GAAP One-time
acquisition
costs - tax
effected		 Non-GAAP 
Noninterest expense$37,388  $(2,113) $35,275  
Average assets$1,285,964    $1,285,964  
Non-interest expense as % of average assets 2.91%    2.74% 
      
      
($ in thousands)(Unaudited) 
For the twelve months ended, December 31, 2019GAAP Additional
reserves not
part of the ALL		 Non-GAAP 
Allowance for loan losses (ALL)$8,999   $6,042  $15,041  
Total loans$906,869       $906,869  
ALL to total loans 0.99%       1.66% 
              
($ in thousands)(Unaudited) 
For the twelve months ended, December 31, 2019GAAP Additional
reserves not
part of the ALL		 Non-GAAP 
Allowance for loan losses (ALL)$8,999   $6,042  $15,041  
Non-performing loans$7,373       $7,373  
ALL to nonperfroming loans (coverage ratio) 122.05%       204.00% 
              

FOR FURTHER INFORMATION
CONTACT BENJAMIN BOCHNOWSKI
(219) 853-7575