NWI-based banks show positive 4Q earnings
Centier Bank, Citizens Bank and Horizon Bank all reported improved fourth-quarter earnings compared to the same period in 2010.
Bank executives said continued economic improvement could sustain progress made since the end of the recession.
Lowering its loss on securities sales, Centier Bank turned a fourth-quarter profit of $10.2 million.
In the three months ended Dec. 31, the Merrillville-based family-owned bank turned its highest profit level in 2010, compared to a $26.6 million loss in the fourth quarter of 2009.
The bank reduced its loss on securities to $11.7 million in the fourth quarter, compared to about $78.3 million in the same period a year earlier.
Centier increased its consumer and business loan portfolios in 2010 and now has $1.62 billion in loans. Centier has $2 billion in assets and has the second-highest percentage share of deposits in a seven-county area of Northwest Indiana.
“The last couple of years have been difficult for the U.S. economy and the banking industry,” Centier President and CEO Mike Schrage said. “Our focus has been working with families and businesses to get back on their feet so that they can return to life and business as usual.”
Citizens Financial Bank
The corporate parent of Citizens Financial Bank posted a lower fourth-quarter profit than the same period in 2009.
Munster-based CFS Bancorp Inc. had a fourth-quarter profit of $918,000, or 9 cents per share, compared to a profit of $2 million, 19 cents per share, in the fourth quarter of 2009. In the last three months of 2009, the bank received $1.4 million in income from an insurance policy.
For the full year, the bank earned $3.5 million, or 32 cents per share, compared to a loss of $543,000, or 5 cents per share, a year earlier.
CFS Bancorp Chairman and CEO Thomas Prisby said the bank is showing positive momentum after posting its fifth consecutive quarter of positive earnings. He also said credit quality remains the bank’s primary focus and the bank expects to make headway in further reducing non-performing assets in the first quarter of 2011.
About 6.9 percent — or $76.8 million — of the bank’s assets were categorized as non-performing as of Dec. 31. The dollar amount is up 12.4 percent from the same point a year earlier.
With $1.1 billion in assets, CFS Bancorp is a publicly traded firm and operates 22 locations in Northwest Indiana and Chicago’s southwest suburbs.
Net income at Michigan City-based Horizon Bancorp rose nearly 38 percent in the fourth quarter on lower interest expenses and gains on mortgage loan sales.
The publicly traded holding company of Horizon Bank had a fourth-quarter profit of $2.9 million, or 75 cents per share, compared to $2.1 million, or 53 cents per share, in the last three months of 2009.
Horizon Bank had net income of $10.5 million, or $2.71 per share, in 2010 compared to $9.1 million, or $2.37 per share in 2009. CEO Craig Dwight said the bank was proud to announce its 11th consecutive year of record earnings and the company’s success reflects an expansion of its current strategy and focusing on a mix of “revenue streams that are in counter-cyclical businesses.”
“While we anticipate some slowing of the mortgage lending business, which has been very strong during the past several years, we have strong and proven commercial lending teams in place to generate opportunities in line with the general economic improvement occurring,” Dwight said.
Two other Indiana-based financial institutions — 1st Source Corp. and MainSource Financial Group Inc. — posted higher earnings in 2010 than they did in 2009. The South Bend-based parent of 1st Source Bank had net income of $41.2 million, or $1.21 per share, up 61.8 percent from its 2009 level. The Greensburg-based parent of MainSource Bank had a profit of $14.8 million, or 58 cents per share, compared to a loss of $64.1 million, or $3.33 per share, in 2009.