Profile: LaPorte Bancorp Inc (LPSB.O)
18 Dec 2013
LaPorte Bancorp, Inc. (LaPorte Bancorp) is the federally-chartered mid-tier stock holding company formed by The LaPorte Savings Bank (the Bank). LaPorte Bancorp owns all of The LaPorte Savings Bank’s capital stock. LaPorte Bancorp’s primary business activities, apart from owning the shares of The LaPorte Savings Bank consists of loaning funds to the LaPorte Savings Bank’s ESOP and investing in checking and money market accounts at The LaPorte Savings Bank. The Bank is an Indiana-chartered savings bank that operates from eight full-service locations in LaPorte and Porter Counties, Indiana. It offers a range of deposit and loan products to individuals and small businesses, which are located in the primary market of LaPorte County, Indiana. The Bank’s business consists of accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in residential loans, commercial real estate loans, mortgage warehouse loans, construction loans, home equity loans and lines of credit, commercial loans, automobile and other consumer loans as well as agency securities and mortgage-backed securities. In addition, it offers trust services through a referral agreement with a third party.
The Bank originates first mortgage loans for the purchase or refinancing of one- to four-family residential real property. The Bank’s loan portfolio includes real estate loans, mortgage warehouse, and consumer and other loans. At December 31, 2010, approximately $57.1 million, or 20.64% of its loan portfolio, consisted of one- to four-family residential loans. It also offers to a lesser extent adjustable rate mortgage loans with fixed terms of one, three, five, seven or 10 years before converting to an annual adjustment schedule based on changes in a designated United States Treasury index. At December 31, 2010, $11.5 million, or 20.77%, of its one- to four-family residential loans contractually due after December 31, 2011 had adjustable rates of interest.
The Bank introduced the new mortgage warehousing lending line of business. As of December 31, 2010, the Bank had repurchase agreements with nine mortgage companies and held $69.6 million of warehoused loans. At December 31, 2010, $79.8 million, or 28.82% of its total loan portfolio consisted of commercial real estate loans. The commercial real estate loans are secured by retail, industrial, warehouse, service, medical and other commercial properties. The Bank originates both fixed- and adjustable-rate commercial real estate loans. The originated fixed-rate commercial real estate loans generally have initial terms of up to five years, with a balloon payment at the end of the term. The originated adjustable-rate commercial real estate loans generally have an initial term of three- to five-years and a repricing option. At December 31, 2010, $17.6 million, or 6.37%, of its total loan portfolio consisted of construction and land loans. The Bank also makes commercial land development and residential land loans. It also makes construction loans for commercial development projects such as multi-family, apartment and small retail and office buildings. At December 31, 2010, $18.0 million, or 6.49% of its total loan portfolio consisted of commercial loans, of which $257,000 of such commercial loans were acquired in the City Savings Bank merger. Commercial credit is offered primarily to small business customers, usually for asset acquisition, business expansion or working capital purposes.
The Bank originates fixed and variable rate home equity loans and variable rate home equity lines of credit secured by a lien on the borrower’s residence. The home equity products originated generally are limited to 80% of the property value less any other mortgages. At December 31, 2010, $14.2 million or 5.12% of its total loan portfolio consisted of home equity loans and lines of credit.
The Bank offers a range of loans, which are either unsecured or secured by property other than real estate. The loans include loans secured by deposits, recreational vehicles or boats, personal and bond loans and indirect and direct automobile loans. At December 31, 2010, these consumer and other loans totaled $9.0 million, or 3.24% of the total loan portfolio. At December 31, 2010, $3.4 million or 1.22% of its total loan portfolio consisted of indirect automobile loans
The Bank’s investment policy permits security investments in debt securities issued by the United States government and United States agencies, municipal bonds, and corporate debt obligations, as well as investments in common stock of the Federal Home Loan Bank of Indianapolis. Securities in these categories are principally classified as securities available-for-sale. The Bank also invests in mortgage-backed securities, including pass-through securities issued and guaranteed by Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and Government National Mortgage Association (Ginnie Mae) . The investment portfolio of the Bank consisted of the United States Treasury and federal agency securities, state and municipal securities, mortgage-backed securities-residential, government agency sponsored collateralized mortgage obligations and privately held collateralized mortgage obligations As of December 31, 2010, the Bank’s investment portfolio was at $119,377,000.
Sources of Fund
Deposits, borrowings, repayments and prepayments of loans and securities, proceeds from maturing securities and cash flows from operations are the primary sources of the funds for use in lending, investing and for other general purposes. The Bank offers a range of deposit accounts with a range of interest rates and terms. The deposit accounts consist of savings accounts, health savings accounts, negotiable order of withdrawal (NOW) accounts, checking accounts, money market accounts, certificates of deposit and individual retirement accounts (IRAs). The Bank also provides commercial checking accounts for businesses. At December 31, 2010, its deposits totaled $317.3 million. At December 31, 2010, Interest-bearing NOW, regular and other savings and money market deposits totaled $133.8 million. At December 31, 2010, the Bank had a total of $148.5 million in certificates of deposit and individual retirement accounts. At December 31, 2010, the Bank held $16.2 million in brokered certificates of deposits through the Certificate of Deposit Registry Service (CDARS) program and pre-approved brokers. At December 31, 2010, non-interest bearing demand deposits totaled $35.0 million.
LaPorte Bancorp Inc
710 Indiana Avenue
LA PORTE IN 46350