Profile: Laporte Bancorp Inc (LPSB.O)
1 Jul 2016
LaPorte Bancorp, Inc., incorporated on June 8, 2012, is a holding company for The LaPorte Savings Bank (the Bank). The Company's business activities, apart from owning the shares of The LaPorte Savings Bank, consists of loaning funds to The LaPorte Savings Bank's Employee Stock Ownership Plan (ESOP), investing in checking and money market accounts at The LaPorte Savings Bank, and investing in other investment securities. The Company's subsidiaries include the Bank and LSB Risk Management, LLC. The LaPorte Savings Bank is an Indiana-chartered savings bank that operates approximately seven full-service locations in LaPorte and Porter Counties, Indiana, and a mortgage loan production office in St. Joseph, Michigan. The Bank offers a range of deposit and loan products to individuals and businesses, most of which are located in its market areas of LaPorte and Porter Counties, Indiana. The Bank's subsidiary, LSB Investments, Inc., manages a portion of the investment portfolio for the Bank. LSB Investments, Inc.'s subsidiary is LSB Real Estate, Inc., which is a real estate investment trust that purchases mortgage loans originated by the Bank.
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 mortgage warehouse loans, commercial real estate loans, residential loans, commercial loans, home equity loans and lines of credit, and to a lesser extent, construction and land loans, automobile, and other consumer loans. In addition, it invests in mortgage-backed securities, collateralized mortgage obligation securities, municipal bond securities, the United States treasury and agency securities, corporate bond securities, and interest-earning time deposits at other financial institutions. The Bank also offers trust services through a referral agreement with a third party.
The Bank offers one- to four-family residential loans and originates for sale into the secondary market. It also provides financing to mortgage companies through its mortgage warehouse lending department. It also offers adjustable rate mortgage loans with fixed interest rate terms of over five or seven years before converting to an annual adjustment schedule based on changes in the London Interbank Offered Rate or the designated United States Treasury index. The Bank provides financing to approve mortgage companies for the origination and sale of residential mortgage loans. The Bank's loan portfolio consists of commercial real estate and over five or more family loans. These types of loans are secured by retail, industrial, warehouse, service, medical, residential apartment complexes, hotels and other commercial properties.
The Bank originates both fixed- and adjustable-rate commercial real estate and over five or more family loans, including partially guaranteed the United States Small Business Administration loans. It offers commercial credit to business customers, usually for asset acquisition, business expansion or working capital purposes. The Bank originates fixed home equity loans and variable rate home equity lines of credit secured by the borrower's residence. The Bank makes both commercial land development and residential land loans. It also makes commercial loans to builders and developers for the development of one- to four-family lots in its market area. The Bank makes construction loans for commercial development projects, such as hospitality, apartment, small retail, hotel and office buildings. It offers a range of loans that are secured by assets other than real estate, such as deposits, recreational vehicles or boats, and automobiles. The Bank has net loans of approximately $341.5 million.
The Bank's subsidiary, LSB Investments, Inc., (LSB Investments), holds a portion of the Bank's investment securities. These securities consist of the United States treasury and federal agency, state and municipal, mortgage-backed securities residential, government agency sponsored collateralized mortgage obligations and corporate debt securities. The Company's total securities available for sale has a fair value of approximately $122.2 million.
Sources of Funds
The Bank offers a range of deposit accounts with a range of interest rates and terms. Its 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). It also provides commercial checking accounts for businesses.
Laporte Bancorp Inc
710 Indiana Ave
LA PORTE IN 46350-3404