Net income for NorthWest Indiana Bancorp doubled in the third quarter as income from loans and foreclosed real estate sales helped boost earnings.
The holding company for Munster-based Peoples Bank had profit of $2.3 million in the three months ending Sept. 30, compared to $1.1 million earned in the comparable 2011 period. The bank earned 79 cents per share in the third quarter, up from 40 cents per share a year earlier, according to financial results released last week.
David Bochnowski, chairman and CEO of the bank and its holding company, said loan originations are up 72.5 percent this year compared to last year, which is a strong indicator consumer confidence has returned in the local economy.
"Clearly everyone is feeling better and there's more economic activity" being generated from lending to customers, Bochnowski said.
Net interest income was $6 million in the third quarter, up slightly from $5.9 million a year ago. Other sources of income from banking operations brought in $2.4 million in the quarter, compared to $1.3 million in the third quarter of 2011. The income boost came from fixed rate mortgage loan sales, gains on foreclosed real estate sales and a benefit from a bank owned life insurance policy.
The ratio of nonperforming loans to total loans fell to 2.72 percent as of Sept. 30, while on Dec. 31 it was 3.56 percent. Bochnowski said the credit quality of institutions is also continuing to improve along with the economy.
The loan portfolio for NorthWest Indiana Bancorp totaled $432.5 million as of Sept. 30, which is up 7.8 percent from Dec. 31. Total assets stood at $678.6 million as of Sept. 30.
Also, the bank said Friday that Joel Gorelick, president and chief administrative officer, will retire Jan. 16. Bochnowski will then resume the role of president once Gorelick retires.
Gorelick will remain a member of the board of directors for the bank and its holding company. Gorelick will also provide consulting services to the institution after his retirement.
Shares of NorthWest Indiana Bancorp, which are traded on the over-the-counter bulletin board, were unchanged Monday at $20.90. Peoples Bank has retail locations in Lake, Porter and LaPorte counties and is ranked No. 9 in deposit market share within Northwest Indiana's seven county area.