LAPORTE BANCORP INC
Contact: Michele M. Thompson
President and Chief Financial Officer
Phone: (219) 362-7511
Fax: (219) 326-6048
LaPorte, Indiana, October 29, 2014 - LaPorte Bancorp, Inc. (the "Company") (Nasdaq: LPSB), the holding company for The LaPorte Savings Bank (the "Bank"), announced today a 54.5% increase in net income to $1.3 million, or $0.25 per diluted share, for the three months ended September 30, 2014, from $868,000, or $0.15 per diluted share, for the comparable period of 2013. Net income for the nine months ended September 30, 2014 increased 9.7% to $3.4 million, or $0.62 per diluted share, from $3.1 million, or $0.53 per diluted share, for the nine months ended September 30,
2013.
"We had a strong third quarter and are pleased with the Company's consistent performance," said Lee A. Brady, Chief Executive Officer of LaPorte Bancorp, Inc. "Our operating results improved from the second quarter of 2014 and the third quarter of 2013 primarily due to an increase in interest income from loans. We also increased our net interest margin for the third quarter of 2014 to 3.24% compared to 3.13% for the second quarter of 2014 and 3.12% for the third quarter of 2013 primarily due to a decrease in the cost of interest-bearing liabilities."
"Our mortgage warehouse loan balances continue to be strong even though mortgage refinance activity has slowed during the year," continued Brady. "The average outstanding balances of our mortgage warehouse loans during the third quarter of 2014 increased to $121.0 million from $109.7 million during the second quarter of 2014 and $95.7 million during the third quarter of 2013. During the third quarter of 2014, we approved four new warehouse lenders with lines that range between $3.0 and $10.0 million which will help diversify our lending market and help to maintain consistent levels of fundings. The mortgage warehouse industry has experienced margin compression in light of the increased competition and we anticipate that margins will continue to compress. Our average yield on mortgage warehouse loans during the third quarter of 2014 was 4.99% compared to 5.08% during the third quarter of 2013."
"Our tangible book value per share increased to $13.08 at September 30, 2014 from $12.82 and $12.09 per share at June 30, 2014 and December 31, 2013, respectively, primarily due to an increase in shareholders' equity and a decrease in outstanding shares due to repurchase activity during 2014," Brady added. "During the third quarter of
2014, our Board of Directors reaffirmed our capital management strategy to utilize our capital for the benefit of our shareholders by implementing a fourth repurchase plan for up to 5% of the outstanding common stock, or approximately
280,800 shares. Through October 28, 2014, we have repurchased 18,837 shares at an average price of $11.58 per share under this plan. Since the completion of our second step conversion in October 2012, we have repurchased 624,646 shares at an average price per share of $10.94. In addition, we remain well capitalized for regulatory purposes with Bank Tier 1, Tier 1 Risk Based Capital, and Total Risk Based Capital at 12.4%, 18.1%, and 19.2%, respectively, at September 30, 2014."
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Net interest income increased $434,000, or 12.7%, to $3.9 million for the three months ended September 30,
2014 from $3.4 million for the prior year period. The increase in net interest income was primarily attributable to a
$347,000, or 10.3%, increase in interest income on loans as the average balances of loans outstanding increased by
14.7%, primarily in mortgage warehouse, five or more family commercial real estate, and single family mortgage loans, from the prior year period. In addition, interest expense for the three months ended September 30, 2014 decreased
$72,000, or 8.4%, primarily due to a 16 basis point decrease in the average cost of interest-bearing liabilities which was partially offset by a $33.3 million, or 9.7%, increase in the average balance of interest-bearing liabilities during the third quarter of 2014 compared to the prior year period. Net interest margin increased 12 basis points to 3.24% for the three months ended September 30, 2014 compared to 3.12% for the prior year period primarily due to the decrease in the average cost of interest-bearing liabilities.
Interest income increased $362,000, or 8.5%, to $4.6 million for the three months ended September 30, 2014 compared to $4.3 million for the prior year period. During the third quarter of 2014, interest income on loans increased
$347,000 compared to the prior year period primarily due to a 14.7% increase in the average balance of loans outstanding to $298.3 million from $260.0 million. The average balance of mortgage warehouse loans increased $25.3 million, or
26.4%, for the three months ended September 30, 2014 when compared to the prior year period due to stronger purchase activity combined with an increase of four mortgage warehouse lenders to a total of 27 approved lenders by the end of the quarter. The average balance of five or more family commercial real estate loans for the three months ended September 30, 2014 increased $6.7 million, or 51.4%, due to new loan originations during the third quarter of 2014. The average balance of single-family mortgage loans for the three months ended September 30, 2014 increased $5.9 million, or 17.5%, due to new purchase originations and an increase in the number of fixed- and variable-rate loans with maximum terms of 15 years being retained within our portfolio. These increases in the average balance of loans outstanding were partially offset by a 20 basis point decrease in the average yields earned on loans due to current lower market interest rates and fees earned on loans during the third quarter of 2014. Interest income on investment securities increased $10,000 during the third quarter of 2014 compared to the prior year period primarily due to a four basis point increase in the average yield on these investments which was partially offset by a 0.5% decrease in the average outstanding balances of investment securities.
Interest expense decreased $72,000, or 8.4%, to $783,000 for the three months ended September 30, 2014 from $855,000 for the prior year period. Interest expense on deposit accounts decreased $99,000, or 18.6%, to $433,000 for the third quarter of 2014 primarily due to a 33 basis point decrease in the average cost of certificates of deposit and IRAs combined with a 1.8% decrease in the average outstanding balances of these types of deposits. Partially offsetting the decrease in interest expense was a $27,000 increase in interest expense on borrowings for the third quarter of 2014 period primarily due to a $23.7 million increase in the average balance of Federal Home Loan Bank ("FHLB") advances when compared to the prior year period. The increase in the average balance of these advances was partially offset by a 31 basis point decrease in the average cost of these borrowings due to lower cost advances that were added in the fourth quarter of 2013. In addition, the interest expense related to the subordinated debentures decreased $29,000 during the three months ended September 30, 2014 as the fixed-interest rate swap related to this debt matured during the first quarter of 2014, which caused the average cost of this debt to decrease by 225 basis points from the prior year period.
Noninterest income increased $52,000, or 8.2%, to $687,000 for the three months ended September 30, 2014 from $635,000 for the prior year period. The primary reason for this increase was due to a $93,000 increase in gain on mortgage banking activities as mortgage originations from purchase activity and associated sales were higher during the third quarter of 2014 when compared to the prior year period. Other income also increased $17,000 during the three months ended September 30, 2014 when compared to the prior year period primarily due to an increase in wire transfer fee income related to increased mortgage warehouse fundings. Partially offsetting these increases was a $47,000 decrease in net gains on sales of securities during the current quarter compared to the prior year period and a $14,000
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decrease in service charges on deposit accounts due to lower overdraft-related fees and service charges on checking accounts as consumers continue to reduce their reliance on these types of products.
Noninterest expense for the three months ended September 30, 2014 and 2013 was relatively stable at $2.9 million. During the third quarter of 2014, salaries and employee benefits expense increased $126,000, which included an increase in payroll expense of $120,000 related to annual merit and incentive accrual increases. Incentive accruals for officers and certain employees are due to the Company's current performance compared to budget projections. Commission expense increased by $19,000 from the prior year period due to the increased dollar volume of mortgage originations during the third quarter of 2014. Collection and other real estate owned expenses increased $12,000 for the three months ended September 30, 2014 compared to the prior year period due to legal expenses associated with one large nonperforming loan combined with legal and other carrying costs related to nonperforming assets. Partially offsetting these increases was a $67,000 decrease in bank examination fees which was due to the timing of internal audit, loan, and mortgage warehouse reviews. Occupancy and equipment also decreased $30,000 due to lower building maintenance and furniture and equipment expense when compared to the 2013 period.
Income before income taxes increased $559,000, or 52.4%, to $1.6 million for the three months ended September 30, 2014 from $1.1 million for the 2013 period which led to an increase in income tax expense for the three months ended September 30, 2014 to $285,000 from $199,000 for the 2013 period. The Company's effective tax rate for the three months ended September 30, 2014 was 17.5%, a decrease from 18.7% for the 2013 period which was primarily due to the Company's tax planning strategies including the captive insurance company that was implemented in December 2013.
Net interest income increased $478,000, or 4.5%, to $11.0 million for the nine months ended September 30,
2014 from $10.6 million for the prior year period. This increase was primarily attributable to a $287,000, or 2.2%, increase in interest income as a result of an increase of $30.0 million in the average balance of interest-earning assets combined with a $191,000, or 7.4%, decrease in interest expense as a result of a decrease in the average cost of interest- bearing liabilities. Net interest margin decreased seven basis points to 3.14% for the nine months ended September
30, 2014 from 3.21% during the prior year period due to an 18 basis point decrease in the average yields earned on average interest-earning assets, primarily loan and investment security yields, which was partially offset by a 16 basis point decrease in the average cost of interest-bearing liabilities from the prior year period.
Interest income increased $287,000, or 2.2%, to $13.4 million for the nine months ended September 30, 2014 compared to $13.1 million for the prior year period primarily due to a $261,000 increase in interest income on investment securities as the average balances of investment securities increased $19.1 million, or 13.0%. This increase was partially offset by a five basis point decrease in the average yield earned on investment securities. During the latter part of 2013 and the beginning of 2014, excess liquidity was utilized for purchases of investment securities at lower interest rates. In addition, dividend income on FHLB stock increased $32,000 primarily due to a supplemental dividend paid during the first quarter of 2014 combined with a $540,000 increase in the average balance of the Company's investment in FHLB stock during the nine months ended September 30, 2014 compared to the prior year period.
Interest income on loans was stable at $10.5 million for the nine months ended September 30, 2014 and 2013. The average balance of loans outstanding increased by $12.8 million for the 2014 period but was offset by a 23 basis point decrease in the average yields earned on loans due to current lower interest and fees earned on commercial, mortgage warehouse, and consumer loans. The average balance on mortgage warehouse loans increased $6.6 million during the 2014 period, however, interest and fee income related to mortgage warehouse loans decreased $42,000 for the nine months ended September 30, 2014 from the prior year period due to a 39 basis point decrease in the average yields earned on these loans as margins tightened due to heightened competition in the market. The average balances of commercial real estate, five or more family commercial real estate, and single-family mortgage loans also increased during the nine months ended September 30, 2014, but was offset by lower yields earned on these types of loans.
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Interest expense decreased $191,000, or 7.4%, to $2.4 million for the nine months ended September 30, 2014 compared to $2.6 million for the prior year period primarily due to a $287,000 decrease in interest expense on deposit accounts partially offset by a $96,000 increase in interest expense on borrowings. Interest expense on certificates of deposit and IRAs decreased $266,000 as new and renewing certificates of deposit and IRAs were priced at lower interest rates resulting in a 26 basis point decrease in the average cost of these deposits from the prior year period. In addition, the average balances on these deposits for the nine months ended September 30, 2014 decreased $4.7 million from the prior year period.
The increase in interest expense on borrowings for the nine months ended September 30, 2014 was primarily due to a $25.7 million increase in the average balance of FHLB advances from the prior year period as the Company entered into new longer term advances during the fourth quarter of 2013 and the second quarter of 2014. Partially offsetting the increase in the average balance of these borrowings was a 44 basis point decrease in the average cost of these borrowings due to the lower interest rate environment. In addition, the fixed-rate swap related to the subordinated debentures matured during the first quarter of 2014 and decreased interest expense by $58,000 as the cost of these debentures decreased by 150 basis points for the nine months ended September 30, 2014 when compared to the prior year period.
Noninterest income decreased $497,000, or 20.4%, to $1.9 million for the nine months ended September 30,
2014 from $2.4 million for the prior year period primarily due to a $437,000 decrease on net gains on the sales of securities as a result of fewer security sales in the current period. Net gains on mortgage banking activities decreased
$96,000 as higher mortgage interest rates during 2014 reduced mortgage purchase and refinance activity resulting in fewer mortgage loans sold in the current year to date period when compared to the prior year period. Other income decreased $18,000 primarily due to lower wire transfer fee income related to mortgage warehouse lending as the number of loans funded decreased from the prior year period. These decreases were partially offset by a decrease in losses on other assets due to lower write-downs on other real estate owned during the nine months ended September 30, 2014 which was reduced by the $30,000 write-down on the Rolling Prairie branch facility recognized during the second quarter of 2014.
Noninterest expense for the nine months ended September 30, 2014 totaled $9.0 million, an increase of
$205,000, or 2.3%, from $8.8 million for the prior year period. Salaries and employee benefits increased $290,000 due to higher payroll costs as certain open positions in the prior year period were filled in the latter part of 2013 as well as higher incentive accruals for officers and employees which is estimated based on the Company's year to date 2014 performance. In addition, total deferred loan origination costs decreased $77,000 during the nine months ended September 30, 2014 due to a lower number of loan originations compared to the 2013 period. Advertising and printing costs also increased $25,000 during the nine months ended September 30, 2014 due to increased public relations, customer surveys, marketing promotions, and printing costs. Collection and other real estate owned expenses increased
$23,000 during the 2014 period primarily related to the legal expenses and carrying costs of nonperforming assets.
Noninterest expense was also favorably impacted by a decrease in bank examination fees and data processing expenses during the nine months ended September 30, 2014 when compared to the 2013 period. The $108,000 decrease in bank examination fees was primarily related to the timing of internal audit, loan, and mortgage warehouse reviews performed during 2014 combined with an overall decrease in external audit fees related to the change in the Company's public accounting firm for the 2014 period. Data processing expense decreased $55,000 during the 2014 period due to the setup and implementation of the Company's investment and real estate investment trust subsidiaries that were established in 2013 as well as the 2013 implementation costs related to a new mortgage software system.
Income before income taxes was relatively stable at $4.0 million for the nine months ended September 30,
2014 and 2013. However, due to the Company's tax planning strategies, including the implementation of the captive insurance company, income tax expense for the nine months ended September 30, 2014 decreased to $570,000 from
$888,000 for the 2013 period and the Company's effective tax rate for the nine months ended September 30, 2014 was
14.3%, a decrease from 22.2% for the 2013 period.
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Total nonperforming assets decreased $1.2 million, or 19.3%, to $4.9 million at September 30, 2014 from $6.1 million at December 31, 2013. At September 30, 2014, our nonperforming assets to total assets ratio decreased to
0.96% from 1.16% at December 31, 2013.
Total nonperforming loans decreased $307,000 to $4.6 million at September 30, 2014 from $4.9 million at December 31, 2013 due to a $1.0 million paydown on a $3.1 million nonperforming commercial real estate and commercial land relationship which was partially offset by increases in nonperforming residential mortgage loans totaling $437,000 and nonaccruing troubled debt restructured loans totaling $315,000. At September 30, 2014, our nonperforming loans to total loans ratio improved to 1.54% from 1.65% at December 31, 2013 as a result of these decreases.
Nonperforming assets also decreased at September 30, 2014 due to an $870,000 decrease in other real estate owned since December 31, 2013 primarily as a result of sales of commercial real estate and residential mortgage properties. During the third quarter of 2014, the Company sold one commercial real estate property for $454,000 which resulted in a gain on sale of $6,000. The Company also sold three residential properties for $72,000 resulting in a
$10,000 net loss during the third quarter of 2014.
The allowance for loan losses totaled $3.7 million at September 30, 2014 and $3.9 million at December 31,
2013. The allowance for loan losses to nonperforming loans ratio increased to 81.4% at September 30, 2014 compared to 79.6% at December 31, 2013 primarily due to the decrease in the Company's nonperforming loan balances. The allowance for loan losses to total loans ratio decreased to 1.25% at September 30, 2014 from 1.31% at December 31,
2013 primarily due to the $2.3 million increase in total loans at September 30, 2014 from December 31, 2013.
The Company's analysis for the allowance for loan losses for the third quarter of 2014 reflected continued improvement in several asset quality metrics and trends, including classified assets, charge-off ratios, delinquencies, and current economic conditions. The Company did not record any provision for loan losses during the three and nine months ended September 30, 2014, compared to the provision recorded during the three and nine months ended September 30, 2013 of $100,000 and $206,000, respectively. Net charge-offs for the three months ended September
30, 2014 totaled $15,000, a decrease from $110,000 for the prior year period. Net charge-offs for the nine months ended September 30, 2014 totaled $159,000, a decrease from $287,000 for the prior year period.
Total assets at September 30, 2014 decreased by $16.3 million, or 3.1%, to $510.6 million compared to $526.9 million at December 31, 2013. Investment securities available-for-sale decreased $6.4 million, or 3.9%, to $157.8 million at September 30, 2014 from $164.3 million at December 31, 2013 as the Company utilized proceeds from sales of investments and principal paydowns during 2014 to fund increased loan volume.
At September 30, 2014, gross loans totaled $299.4 million, a 0.8% increase from $297.2 million at December
31, 2013. The increase in gross loans was primarily due to a $6.4 million, or 5.5%, increase in mortgage warehouse balances to $121.8 million at September 30, 2014 from $115.4 million at December 31, 2013. During 2014, mortgage warehouse balances fluctuated as purchase and refinance activity significantly slowed in the beginning of the year with purchase activity increasing at the end of March 2014 and continuing through the third quarter of 2014. The higher mortgage warehouse balances were a result of management diversifying its mortgage warehouse portfolio in 2014 by adding new warehouse lenders in different geographic markets nationwide which increased mortgage warehouse volume. During 2014, the Company originated $15.1 million in total commercial loans, including $8.1 million in five or more family loans, $3.8 million in commercial real estate loans, $2.1 million in commercial and industrial loans, and $1.5 million in commercial construction loans. Of the total originated in five or more family, $3.0 million were participated to other banks in order to remain within the Bank's legal lending limit. In addition, commercial loan
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originations for the 2014 period have been more than offset by payoffs and paydowns resulting in a decrease in total commercial loans of $7.5 million, or 5.8%, since December 31, 2013.
Total deposits at September 30, 2014 decreased $3.6 million, or 1.1%, to $343.1 million from $346.7 million at December 31, 2013 primarily due to a decrease of $9.8 million in certificates of deposit and IRAs since December
31, 2013. Partially offsetting the decrease were increases of $2.9 million in non-interest bearing and $2.0 million in interest bearing demand deposit accounts as the Company focused on growing core deposits during the third quarter of 2014 to help reduce reliance on public fund deposits. Borrowings totaled $80.2 million at September 30, 2014, down
15.0% from $94.3 million at December 31, 2013 primarily due to a decrease in short-term overnight borrowings as the Company utilized excess liquidity and proceeds from sales and principal repayments on investment securities available-for-sale and commercial loans to fund increases in mortgage warehouse and residential mortgage loan balances at September 30, 2014.
Total shareholders' equity increased $1.9 million, or 2.4%, to $82.2 million at September 30, 2014, compared to $80.2 million at December 31, 2013 due to net income totaling $3.4 million for the nine months ended September
30, 2014 and a $2.2 million increase in accumulated other comprehensive income as unrealized securities gains increased during 2014. These increases were partially offset by a $3.4 million decrease in additional paid-in capital as a result of the Company repurchasing 309,800 shares of its common stock during 2014 in accordance with its previously announced
repurchase plans. During August 2014, the Company completed its third repurchase plan for 145,000 shares at an average cost of $11.23 per share. Also during the third quarter of 2014, the Company announced its fourth repurchase plan for 5%, or approximately 280,800 shares, of its outstanding common stock. At September 30, 2014, the Company had not repurchased any shares under this plan. Cash dividends paid totaling $694,000 during the nine months ended September 30, 2014 also reduced the Company's shareholders' equity from December 31, 2013.
At September 30, 2014, the Bank was considered well capitalized and exceeded its applicable regulatory capital requirements with Tier 1 leverage, Tier 1 risk-based capital, and total risk-based capital ratios of 12.4%, 18.1%, and
19.2%, respectively.
LaPorte Bancorp, Inc. is a Maryland-chartered stock holding company. The Company is headquartered at 710
Indiana Avenue, LaPorte, Indiana. Founded in 1871, The LaPorte Savings Bank is an Indiana-chartered savings bank that operates seven full service locations in the LaPorte and Porter County regions in Northwest Indiana and a mortgage loan production office in St. Joseph, Michigan. As a community-oriented savings bank, the Bank offers a variety of deposit and loan products to individuals and small businesses. Investors may obtain additional information about LaPorte Bancorp, Inc. and the Bank on the Internet at www.laportesavingsbank.com under Investor Relations. All information at and for the periods ended September 30, 2014 and 2013 has been derived from unaudited financial information.
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Loans, including fees $ 3,721 $ 3,521 $ 3,374 $ 10,492 $ 10,492
Taxable securities 452 510 489 1,500 1,419
Tax exempt securities 411 414 364 1,239 1,059
FHLB stock 39 41 33 132 100
Other interest income 21 19 22 63 69
Total Interest and dividend income 4,644 4,505 4,282 13,426 13,139
Deposits 433 461 532 1,371 1,658
Federal Home Loan Bank advances 307 302 251 862 709
Subordinated debentures 42 45 71 152 210
Federal funds purchased and other
short-term borrowings 1 2 1 3 2
Total interest expense 783 810 855 2,388 2,579
Net interest income 3,861 3,695 3,427 11,038 10,560
Provision for loan losses - - 100 - 206
Net interest income after
provision for loan losses 3,861 3,695 3,327 11,038 10,354
Service charges on deposit accounts 102 107 116 313 324
ATM and debit card fees 111 114 114 325 325
Earnings on bank owned life insurance, net 109 109 111 322 307
Net gains on mortgage banking activities 204 235 111 558 654
Loan servicing fees, net 37 22 28 93 72
Net gains on securities 8 90 55 108 545
Losses on other assets (17) (48) (16) (101) (130) Other income 133 108 116 327 345
Total noninterest income 687 737 635 1,945 2,442
Salaries and employee benefits 1,814 1,710 1,688 5,297 5,007
Occupancy and equipment 407 422 437 1,312 1,326
Data processing 125 133 147 408 463
Advertising 65 96 64 234 209
Bank examination fees 41 117 108 201 309
Amortization of intangible assets 18 18 21 54 68
FDIC insurance 76 77 74 236 228
Collection and other real estate owned 52 74 40 179 156
Other expenses 324 334 316 1,087 1,037
Total noninterest expense 2,922 2,981 2,895 9,008 8,803
Income before income tax expense 1,626 1,451 1,067 3,975 3,993
Income tax expense 285 237 199 570 888
Net income $ 1,341 $ 1,214 $ 868 $ 3,405 $ 3,105
Earnings per share:
Basic $ 0.25 $ 0.23 $ 0.15 $ 0.63 $ 0.54
Diluted 0.25 0.22 0.15 0.62 0.53
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LAPORTE BANCORP, INC. Average Balance Sheets (Unaudited) (Dollars in thousands) Average For the Three Months Ended September 30,Assets:
Outstanding Balance Interest Yield/Cost (1) Outstanding Balance Interest Yield/Cost (1)Loans (2) $ 298,318 $ 3,721 4.99% $ 260,030 $ 3,374 5.19% Taxable securities 105,336 452 1.72 115,132 489 1.70
Tax exempt securities (3) 52,537 411 3.13 43,473 364 3.35
FHLB stock 4,322 39 3.61 3,817 33 3.46
Fed funds sold and other interest-earning
deposits 16,387 21 0.51 17,310 22 0.51
Total interest-earning assets 476,900 4,644 3.90 439,762 4,282 3.89
Noninterest-earning assets 43,314 43,660
Total assets $ 520,214 $ 483,422
Liabilities and equity:
Savings deposits $ 63,595 $ 9 0.06% $ 60,010 $ 8 0.05% Money market accounts 69,523 65 0.37 63,284 63 0.40
Interest-bearing checking 56,387 31 0.22 54,647 36 0.26
Certificates of deposit and IRAs 106,721 328 1.23 108,663 425 1.56
Total interest bearing deposits 296,226 433 0.58 286,604 532 0.74
FHLB advances 75,603 307 1.62 51,892 251 1.93
Subordinated debentures 5,155 42 3.26 5,155 71 5.51
Other secured borrowings 626 1 0.64 637 1 0.63
Total borrowings 81,384 350 1.72 57,684 323 2.24
Total interest-bearing liabilities 377,610 783 0.83 344,288 855 0.99
Noninterest-bearing demand deposits 55,213 50,953
Other liabilities 5,156 5,475
Total liabilities 437,979 400,716
Equity 82,235 82,706
Total liabilities and equity $ 520,214 $ 483,422
Net interest income $ 3,861 $ 3,427
Net interest rate spread 3.07% 2.90% Net interest-earning assets $ 99,290 $ 95,474
Net interest margin 3.24% 3.12% Average interest-earning assets to interest-
bearing liabilities 126.29% 127.73%
(1) Annualized, as applicable.
(2) The average balance of loans includes loans held for sale and nonperforming loans, interest on which is recognized on a cash basis.
(3) No tax-equivalent yield adjustments have been made.
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LAPORTE BANCORP, INC. Average Balance Sheets (Unaudited) (Dollars in thousands) Average For the Nine Months Ended September 30,Assets:
Outstanding Balance Interest Yield/Cost (1) Outstanding Balance Interest Yield/Cost (1)Loans (2) $ 280,589 $ 10,492 4.99% $ 267,743 $ 10,492 5.22% Taxable securities 113,082 1,500 1.77 104,536 1,419 1.81
Tax exempt securities (3) 52,433 1,239 3.15 41,904 1,059 3.37
FHLB stock 4,357 132 4.04 3,817 100 3.49
Fed funds sold and other interest-earning
deposits 17,832 63 0.47 20,337 69 0.45
Total interest-earning assets 468,293 13,426 3.82 438,337 13,139 4.00
Noninterest-earning assets 43,675 41,469
Total assets $ 511,968 $ 479,806
Liabilities and equity:
Savings deposits $ 63,610 $ 27 0.06% $ 58,682 $ 24 0.05% Money market accounts 68,243 189 0.37 62,958 192 0.41
Interest-bearing checking 54,805 90 0.22 53,770 111 0.28
Certificates of deposit and IRAs 107,863 1,065 1.32 112,513 1,331 1.58
Total interest bearing deposits 294,521 1,371 0.62 287,923 1,658 0.77
FHLB advances 71,996 862 1.60 46,251 709 2.04
Subordinated debentures 5,155 152 3.93 5,155 210 5.43
Other secured borrowings 821 3 0.49 399 2 0.67
Total borrowings 77,972 1,017 1.74 51,805 921 2.37
Total interest-bearing liabilities 372,493 2,388 0.85 339,728 2,579 1.01
Noninterest-bearing demand deposits 52,580 50,601
Other liabilities 5,223 5,594
Total liabilities 430,296 395,923
Equity 81,672 83,883
Total liabilities and equity $ 511,968 $ 479,806
Net interest income $ 11,038 $ 10,560
Net interest rate spread 2.97% 2.99% Net interest-earning assets $ 95,800 $ 98,609
Net interest margin 3.14% 3.21% Average interest-earning assets to interest-
bearing liabilities 125.72% 129.03%
(1) Annualized, as applicable.
(2) The average balance of loans includes loans held for sale and nonperforming loans, interest on which is recognized on a cash basis.
(3) No tax-equivalent yield adjustments have been made.
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LAPORTE BANCORP, INC. Balance Sheet Data and Financial Ratios (Unaudited) (Dollars in thousands) Balance Sheet Data September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013Total assets $ 510,597 $ 535,162 $ 525,606 $ 526,881 $ 499,639
Cash and cash equivalents 6,811 14,690 8,500 18,219 7,344
Interest-earning time deposits in other financial
institutions 6,385 7,126 7,129 6,642 7,631
Investment securities 157,831 159,728 173,918 164,272 167,709
FHLB stock 4,275 4,375 4,375 4,375 3,817
Loans held for sale, at fair value 2,509 3,836 974 1,118 408
Loans, gross 299,440 311,086 296,593 297,190 277,836
Allowance for loan losses 3,746 3,761 3,868 3,905 4,227
Deposits 343,054 356,856 343,271 346,701 335,447
FHLB advances 75,000 84,992 82,490 86,777 69,990
Other borrowings 5,155 5,155 14,150 7,570 5,555
Shareholders' equity 82,158 82,531 80,994 80,249 83,401
Performance RatiosBook value per share $ 14.62 $ 14.32 $ 13.90 $ 13.56 $ 13.42
Tangible book value per share 13.08 12.82 12.41 12.09 12.01
Return on average assets
(QTD annualized) 1.03% 0.94% 0.68% 0.73% 0.72%
Return on average equity
(QTD annualized) 6.52 5.94 4.19 4.41 4.20
Net interest margin
(QTD annualized) 3.24 3.13 3.06 3.16 3.12
Efficiency ratio 64.25 67.26 77.58 74.72 71.27
Credit QualityTotal nonperforming assets $ 4,919 $ 6,226 $ 6,038 $ 6,096 $ 7,679
Total nonperforming loans 4,601 5,363 5,189 4,908 6,062
Asset Quality RatiosNonperforming assets to total assets 0.96% 1.16% 1.15% 1.16% 1.54% Nonperforming loans to total loans 1.54 1.72 1.75 1.65 2.18
Allowance for loan losses to nonperforming loans 81.42 70.13 74.54 79.56 69.73
Allowance for loan losses to total loans 1.25 1.21 1.30 1.31 1.52
Net charge-offs to average loans outstanding
(QTD annualized) 0.02 0.15 0.06 0.18 0.17
LaPorte Bancorp, Inc. - Page 11
LAPORTE BANCORP, INC. Nonperforming Assets (Unaudited) (Dollars in thousands) Nonaccrual loans:Commercial:
September 30, 2014 December 31, 2013Real estate $ 856 $ 843
Land 1,712 2,748
Total commercial 2,568 3,591
Mortgage 1,481 1,044
Home equity 9 43
Consumer and other 1 3
Total nonaccruing troubled debt restructured loans 542 227
Total nonaccrual loans 4,601 4,908
Foreclosed assets:Commercial:
Real estate $ 74 $ 646
Land 187 205
Total commercial 261 851
Mortgage 11 281
Residential construction - land 46 56
Total foreclosed assets 318 1,188
Total nonperforming assets $ 4,919 $ 6,096
This news release contains forward-looking statements within the meaning of the federal securities laws. Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results. These forward-looking statements, identified by words such as "will," "expected," "believe," and "prospects," involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. These risks and uncertainties involve general economic trends and changes in interest rates, increased competition, changes in consumer demand for financial services, the possibility of unforeseen events affecting the industry generally, the uncertainties associated with newly developed or acquired operations, and market disruptions. LaPorte Bancorp, Inc. undertakes no obligation to release revisions to these forward-looking statements publicly to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.
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