UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended June 30, 2020 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from to Commission File Number: 0-26128 NorthWest Indiana Bancorp (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpora ...

Commission File Number: 0-26128 NorthWest Indiana Bancorp ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended March 31, 2020 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from ______ to ______ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) (Exact name of registrant as specified in its charter) (State or other jurisdicti ...

Financial Performance - The Bancorp's net income for 2019 was $12.1 million, translating to $3.53 basic and diluted earnings per common share, with a return on average assets of 0.94% and a return on average stockholders' equity of 9.54%[179] - Net income for 2019 was $12.1 million, an increase of $2.8 million (29.6%) from $9.3 million in 2018[222] - Comprehensive income for 2019 was $19,154 thousand, significantly higher than $5,857 thousand in 2018, representing an increase of 226.5%[252] - Net income for the year ended December 31, 2019, was $12,097,000, an increase of 29.8% from $9,337,000 in 2018[255] - The Bancorp reported a net income of $12.1 million for 2019, resulting in basic and diluted earnings per common share of $3.53, an increase from $3.17 in 2018[365] Asset and Deposit Growth - As of December 31, 2019, the Bancorp had total assets of $1.3 billion, total deposits of $1.2 billion, and stockholders' equity of $134.1 million, with a book value per share of $38.85[179] - Total assets increased by $232.6 million (21.2%) during the year ended December 31, 2019, with interest-earning assets rising by $204.2 million (20.1%)[187] - The Bancorp's total deposits increased by $224.6 million (24.2%) to $1.154 billion as of December 31, 2019, primarily due to the AJSB acquisition and internal growth[211] - Total deposits increased to $1,154,370 thousand in 2019, compared to $929,786 thousand in 2018, marking a growth of 24.2%[250] Loan Performance - Loans totaled $906.9 million, representing 68.3% of total assets and 78.6% of total deposits, with residential real estate loans increasing to $299.3 million (33.0% of loans)[187][188] - Total loans receivable increased to $906.9 million in 2019 from $764.4 million in 2018, representing an increase of 18.6%[310] - The allowance for loan losses (ALL) rose to $8.999 million, representing 0.99% of total loans, compared to 1.04% in 2018[205] - The provision for loan losses for 2019 was $2.584 million, significantly higher than $1.308 million in 2018, with commercial business loans contributing $1.295 million to the provision[202] - Non-performing loans totaled $7.373 million, up from $6.916 million in 2018, with the ALL covering 122.1% of non-performing loans[205] Acquisitions - The acquisition of AJSB was completed on January 24, 2019, with an implied valuation of approximately $33.2 million, expanding the Bank's network to 22 banking centers[180][182] - The Bancorp issued 416,478 shares of common stock and paid approximately $15.7 million in cash as part of the AJSB acquisition[182] - The Bancorp completed the acquisition of First Personal Financial Corp. on July 26, 2018, with an implied valuation of approximately $15.6 million[296] - The total purchase price for the AJSB acquisition was allocated as follows: total assets purchased amounted to $178.781 million, with total liabilities assumed of $145.546 million[304] - The Bancorp's banking center network expanded to 22 banking centers following the AJSB Merger, enhancing its retail banking presence in Cook County, Illinois[303] Income and Expense Analysis - Net interest income for 2019 was $43.2 million, an increase of $8.8 million (25.6%) from $34.4 million in 2018[223] - Total noninterest income increased by $1,571 thousand (17.3%) from $9,099 thousand in 2018 to $10,670 thousand in 2019, driven by higher fees and service charges, wealth management operations, and gains on loan sales[227] - Total noninterest expense increased by $6,005 thousand (19.1%) from $31,383 thousand in 2018 to $37,388 thousand in 2019, primarily due to higher compensation and benefits from increased headcount following acquisitions[229] - The efficiency ratio improved to 69.5% in 2019 from 72.2% in 2018, attributed to increased interest income[229] - Income tax expenses increased by $329 thousand (23.0%) from $1.4 million in 2018 to $1.8 million in 2019, with an effective tax rate of 12.7% compared to 13.3% in the previous year[230] Securities and Investments - The securities portfolio increased by $35.5 million (14.7%) to $277.2 million, representing 22.7% of interest-earning assets[207] - The estimated fair value of available-for-sale securities as of December 31, 2019, was $277.219 million, with gross unrealized gains of $6.653 million and losses of $1.267 million[305] - The total proceeds from the sale of available-for-sale securities in 2019 were $37.939 million, with gross gains of $888 thousand and gross losses of $267 thousand[306] - The total temporarily impaired securities amounted to $29.4 million in 2019, with unrealized losses of $1.3 million, compared to $149.7 million and $4.8 million in 2018, respectively[308] Capital and Equity - Stockholders' equity totaled $134.1 million at December 31, 2019, an increase of $32.6 million (32.2%) from $101.5 million at December 31, 2018[217] - The Bancorp's total capital to risk-weighted assets ratio was 12.7% at December 31, 2019, exceeding the minimum required ratio of 8.0%[219] - The Bancorp's common equity tier 1 capital to risk-weighted assets ratio was 11.8%, exceeding the minimum required ratio of 4.5%[355] - The total amount of dividends declared by the Bancorp in 2020 is limited to its net profits for that year[357] Risk Management and Credit Quality - The Bancorp's loan grading system includes categories ranging from minimal risk to substandard, with a focus on assessing borrower credit fundamentals and cash flow[315][316][317][318][319][320][321][322][323] - The overall credit quality indicators reflect a stable portfolio with a focus on maintaining acceptable risk levels across various loan segments[314] - The total past due loans for home equity reached $502,000, with a current loan balance of $49,181,000[328] - The total recorded investments greater than 90 days past due amounted to $5,907,000, with a total current loan balance of $892,219,000[328] Derivative Financial Instruments - Total notational amount of interest rate swap contracts increased from $8,649 thousand in 2018 to $29,466 thousand in 2019, representing a growth of 240%[374] - Total non-hedging derivative financial instruments reported in the Statement of Income increased from $110 thousand in 2018 to $557 thousand in 2019, a rise of 407%[375] - Other income from interest rate swap contracts grew from $110 thousand in 2018 to $371 thousand in 2019, an increase of 237%[375] - Overall, the company demonstrated significant growth in derivative financial instruments and related income, indicating a strategic focus on enhancing financial derivatives management[375]

Financial Performance - Net income for Q3 2019 was $3.6 million, translating to $1.04 earnings per common share, while net income for the nine months ended September 30, 2019, was $9.8 million or $2.88 per share[92]. - The Bancorp reported net income of $9.8 million for the nine months ended September 30, 2019, an increase of $3.1 million (46.7%) from $6.7 million for the same period in 2018[141]. - The Bancorp reported net income of $3.6 million for the quarter ended September 30, 2019, an increase of $2.0 million, or 120.2%, compared to the same quarter in 2018[130]. Asset and Loan Growth - As of September 30, 2019, total assets reached $1.3 billion, with total loans receivable at $904.3 million and total deposits at $1.2 billion[92]. - Total assets increased by $234.3 million (21.4%) during the nine months ended September 30, 2019, primarily due to the acquisition of AJSB and internal growth[93]. - Total loans reached $904.273 million, up from $764.400 million at December 31, 2018, indicating a growth of 18.3%[109]. - Net loans receivable grew to $895.1 million, up from $756.4 million at the end of 2018, with residential real estate loans increasing to $297.8 million (32.9% of total loans)[94]. Deposits and Funding - The Bancorp's total deposits grew to $1.152 billion, a 23.9% increase from $929.786 million at December 31, 2018, primarily due to the acquisition of AJSB[114]. - Total deposits increased to $1,146.053 million for the quarter ended September 30, 2019, compared to $883.405 million for the same period in 2018[134]. - Total borrowed funds decreased to $30.931 million from $54.628 million at December 31, 2018, a decline of 43.4%[115]. Non-Performing Loans and Allowance for Loan Losses - Non-performing loans totaled $9.6 million, representing 1.06% of total loans, an increase from 0.90% at the end of 2018[97]. - The increase in nonperforming and substandard loans was attributed to the AJSB acquisition and new commercial business loans[103]. - As of September 30, 2019, the allowance for loan losses (ALL) increased to $9.174 million from $7.962 million at December 31, 2018, representing a growth of 15.2%[109]. - Non-performing loans increased to $9.588 million from $6.916 million at December 31, 2018, reflecting a rise of 38.4%[109]. Income and Expense Analysis - Net interest income for the quarter ended September 30, 2019, was $10.8 million, an increase of $1.8 million, or 19.7%, from $9.0 million in the same quarter of 2018[131]. - Total noninterest income for the quarter ended September 30, 2019, was $2.897 million, an increase of $674 thousand (30.3%) from $2.223 million in the same quarter of 2018[137]. - Total noninterest expense increased to $27,982 thousand for the nine months ended September 30, 2019, compared to $22,930 thousand in 2018, representing a rise of 22.0%[150]. - Compensation and benefits expenses rose by 19.0% to $14,333 thousand in 2019 from $12,045 thousand in 2018, primarily due to acquisitions[150]. Capital Ratios and Dividends - The Bancorp's Common Equity Tier 1 Capital ratio was 11.7% as of September 30, 2019, exceeding the minimum required ratio of 4.5%[126]. - The Bancorp's total capital to risk-weighted assets ratio was 12.7% as of September 30, 2019, exceeding the minimum requirement of 8.0%[126]. - The Bancorp declared a third quarter dividend of $0.31 per share, paid on October 3, 2019[129]. Efficiency and Yield Metrics - The efficiency ratio improved to 67.7% for the quarter ended September 30, 2019, compared to 80.59% for the same quarter in 2018, driven by increased interest income[139]. - The efficiency ratio improved to 68.7% for the nine months ended September 30, 2019, down from 72.6% in 2018, attributed to increased interest income[150]. - The weighted-average yield on interest-earning assets was 4.40% for the quarter ended September 30, 2019, compared to 4.26% for the same quarter in 2018[131]. Future Outlook - The Bancorp's forward-looking statements indicate expectations for continued growth in interest income and potential merger and acquisition activities[153].

Financial Performance - Net income for the quarter ended June 30, 2019, was $4.0 million, resulting in earnings per common share of $1.17, with a return on average assets (ROA) of 1.27% and return on average stockholders' equity (ROE) of 12.77%[96] - The Bancorp reported net income of $4.0 million for the quarter ended June 30, 2019, an increase of $1.5 million (60.2%) compared to $2.5 million for the same quarter in 2018[141] - The net income for the six months ended June 30, 2019, was $6.2 million, an increase of $1.2 million (23.1%) compared to $5.1 million for the same period in 2018[151] Asset and Loan Growth - As of June 30, 2019, the Bancorp had total assets of $1.3 billion, total loans receivable of $894.3 million, and total deposits of $1.1 billion[96] - Total assets increased by $213.2 million (19.4%) during the six months ended June 30, 2019, primarily due to the acquisition of AJSB and internal growth[103] - The Bancorp's net loans receivable totaled $885.5 million at June 30, 2019, up from $756.4 million at December 31, 2018[104] - Total assets as of June 30, 2019, were $1,265,132 thousand, compared to $944,348 thousand as of June 30, 2018[144] - Total assets increased to $1,247,870 thousand as of June 30, 2019, compared to $938,738 thousand as of June 30, 2018, representing a growth of 32.9%[154] Deposits and Funding - Total deposits reached $1,127,121 thousand as of June 30, 2019, representing a year-to-date increase of $197,335 thousand or 21.2%[125] - Total deposits increased to $1,097,283 thousand for the quarter ended June 30, 2019, from $786,207 thousand in the same quarter of 2018[144] - The Bancorp's total borrowed funds decreased by $16,000 thousand (29.3%) to $38,628 thousand as of June 30, 2019, compared to $54,628 thousand at December 31, 2018[127] Non-Performing Loans and Loan Losses - Non-performing loans increased to $9.9 million (1.11% of total loans) as of June 30, 2019, compared to $6.9 million (0.90% of total loans) at December 31, 2018[108] - Total impaired loans increased to $8,622 thousand as of June 30, 2019, compared to $5,782 thousand in 2018, reflecting a significant rise of 49.5%[112] - The provision for loan losses for the six months ended June 30, 2019, was $828 thousand, up from $638 thousand in the same period of 2018, indicating a 29.8% increase[118] - Non-performing loans totaled $9,900 thousand as of June 30, 2019, up from $6,916 thousand in 2018, marking a 43.0% increase[120] - The increase in commercial business loans contributed $1,200 thousand to the rise in non-performing loans as of June 30, 2019[114] Income and Expense Analysis - Net interest income for the quarter ended June 30, 2019 was $11.2 million, an increase of $3.3 million (42.2%) from $7.9 million for the same quarter in 2018[142] - Total noninterest income for the quarter ended June 30, 2019, was $2,669 thousand, an increase of $466 thousand (21.2%) compared to $2,203 thousand in the same quarter of 2018[146] - Noninterest income totaled $5,238 thousand for the six months ended June 30, 2019, a 12.6% increase from $4,652 thousand in 2018, driven by a 30.8% rise in fees and service charges[156] - Noninterest expense increased by 34.9% to $18,713 thousand for the six months ended June 30, 2019, up from $13,873 thousand in 2018, primarily due to higher compensation and benefits related to acquisitions[159] Capital and Ratios - The Common Equity Tier 1 Capital ratio was 11.5% at June 30, 2019, exceeding the minimum required ratio of 4.5%[138] - The Bancorp's stockholders' equity increased by $27.3 million (27.0%) during the six months ended June 30, 2019, primarily due to net income and the issuance of shares for the acquisition of AJSB[132] - The efficiency ratio improved to 60.7% for the quarter ended June 30, 2019, down from 68.5% for the same quarter in 2018, primarily due to increased interest income[149] - The efficiency ratio for the six months ended June 30, 2019, was 69.2%, compared to 68.1% for the same period in 2018, reflecting increased noninterest expenses[159] Acquisitions - The Bancorp completed the acquisition of AJSB on January 24, 2019, with an implied valuation of approximately $32.9 million, expanding its banking center network to 22 locations[97][99] - The Bancorp issued 416,478 shares of common stock and paid approximately $15.7 million in cash to AJSB stockholders as part of the acquisition[99] - The acquisition of First Personal in July 2018 expanded the Bancorp's retail banking network to 19 banking centers, marking its entry into the South Suburban Chicagoland market[100] Forward-Looking Statements - The company cautions that forward-looking statements regarding future business prospects and financial performance are subject to risks and uncertainties that may cause actual results to differ materially[162]

Financial Performance - Net income for the quarter ended March 31, 2019, was $2.2 million, resulting in earnings per common share of $0.66[91] - Net income for the quarter ended March 31, 2019, was $2.2 million, a decrease of $337 thousand (13.2%) from $2.6 million for the same quarter in 2018[137] - Noninterest income rose to $2,570 thousand for the quarter ended March 31, 2019, up 4.9% from $2,449 thousand in the same quarter of 2018, driven by a 30.3% increase in fees and service charges[142] - Total noninterest expense increased significantly to $10,291 thousand, a 47.7% rise from $6,967 thousand in the prior year, primarily due to acquisitions and increased operational costs[144] - The efficiency ratio for the quarter ended March 31, 2019, was 78.1%, compared to 67.8% for the same quarter in 2018, indicating a decline in operational efficiency[144] - Income tax expenses decreased to $340 thousand for the quarter ended March 31, 2019, down 18.1% from $415 thousand in the same quarter of 2018[145] - The combined effective federal and state tax rates decreased to 13.3% for the quarter ended March 31, 2019, compared to 13.9% for the same quarter in 2018[145] Asset and Loan Growth - As of March 31, 2019, total assets were $1.3 billion, total loans receivable were $865.0 million, and total deposits were $1.1 billion[91] - Total assets increased by $172.2 million (15.7%) during the three months ended March 31, 2019[98] - Net loans receivable increased to $856.8 million, up from $756.4 million at December 31, 2018[99] - Total interest earning assets increased to $1,134,840 thousand for the quarter ended March 31, 2019, compared to $875,474 thousand for the same period in 2018, representing a growth of 29.6%[140] - Outstanding commitments to fund loans totaled $191.4 million at March 31, 2019, with approximately 54.1% at variable rates[128] Acquisition Impact - The Bancorp completed the acquisition of AJSB on January 24, 2019, with an implied valuation of approximately $32.9 million[94] - The acquisition of AJSB expanded the Bank's full-service retail banking network to 22 banking centers[94] - The Bancorp issued 416,478 shares of common stock and paid approximately $15.4 million in cash as part of the AJSB acquisition[94] - Nonperforming loans increased by $1.1 million due to the AJSB acquisition, contributing to a total of $8,361 thousand in non-performing loans as of March 31, 2019, compared to $6,916 thousand at December 31, 2018[109] - Total deposits rose to $1,101,653 thousand as of March 31, 2019, marking an increase of $171,867 thousand (18.5%) from $929,786 thousand at December 31, 2018, primarily due to the AJSB acquisition[122] - Interest-bearing deposits in other financial institutions increased by $12,139 thousand (389.6%) to $15,255 thousand as of March 31, 2019, primarily due to the AJSB acquisition[119] Loan Quality and Reserves - Nonperforming loans totaled $8.361 million, representing 0.97% of total loans as of March 31, 2019[101] - The allowance for loan losses (ALL) increased to $8,236 thousand as of March 31, 2019, from $7,962 thousand at December 31, 2018, representing a coverage ratio of 98.5% for non-performing loans[116] - The Bancorp's troubled debt restructured loans decreased from $2,031 thousand on December 31, 2018, to $2,023 thousand on March 31, 2019, reflecting a reduction of $8 thousand[108] - The total purchased credit impaired loans reserves decreased to $3.0 million at March 31, 2019, from $3.1 million at December 31, 2018[115] Capital and Equity - Stockholders' equity increased by $21.8 million (21.5%) during the three months ended March 31, 2019, primarily due to net income and unrealized gains on available securities[129] - The Bancorp's Common Equity Tier 1 Capital ratio was 11.6% at March 31, 2019, exceeding the minimum required ratio of 4.5%[135] - The Bancorp's total capital to risk-weighted assets ratio was 12.6% at March 31, 2019, above the minimum required ratio of 8.0%[135] Interest Income and Expenses - Net interest income increased by $2.8 million (35.3%) to $10.6 million for the quarter ended March 31, 2019, compared to $7.8 million for the same quarter in 2018[138] - The weighted-average yield on interest-earning assets was 4.40% for the quarter ended March 31, 2019, up from 3.99% for the same period in 2018[138] - Total deposits reached $1,038,380 thousand, with an interest expense of $1,672 thousand, compared to $782,382 thousand and $675 thousand in the same quarter of 2018[140] - The increase in compensation and benefits was primarily due to the acquisition of AJSB and First Personal, contributing to a total of $4,676 thousand in expenses, up 21.1% from the previous year[144] Cash Flow and Investments - Cash provided from investing activities totaled $37.4 million for the current period, compared to cash outflows of $6.7 million for the same period in 2018[126] - Cash and cash equivalents increased by $43.7 million for the three months ended March 31, 2019, compared to a $9.4 million increase for the same period in 2018[126] - Foreclosed real estate totaled $1.5 million as of March 31, 2019, slightly down from $1.6 million at December 31, 2018, with net gains from sales amounting to $27 thousand for the quarter[117] - The gain on sale of securities decreased by 53.6% to $352 thousand, reflecting current market conditions[142]

Financial Performance - The Bancorp's net income for 2018 was $9.3 million, translating to basic and diluted earnings of $3.17 per common share, with a return on average assets of 0.93% and return on average stockholders' equity of 9.88%[175]. - Net income for 2018 was $9.3 million, an increase of $376 thousand (4.2%) compared to $9.0 million for 2017, driven by strong loan originations and the merger with First Personal[216]. - Net interest income for 2018 was $34.4 million, an increase of $3.6 million (11.7%) from $30.8 million for 2017, with a net interest margin of 3.67% compared to 3.61% for 2017[217]. - Noninterest income for 2018 was $9.1 million, an increase of $1.3 million (17.4%) from $7.8 million for 2017, with gains from loan sales increasing by $419 thousand (34.9%)[220]. - Noninterest expense for 2018 was $31.4 million, up $5.9 million (23.1%) from $25.5 million for 2017, primarily due to the acquisition of First Personal[221]. - The Bancorp's effective tax rate decreased to 13.3% for 2018 from 24.3% for 2017, resulting in a tax expense of $1.4 million, down $1.4 million (50.2%) from the previous year[222]. - The efficiency ratio for 2018 was 72.21%, compared to 66.17% for 2017, impacted by one-time costs associated with the acquisition of First Personal[221]. Asset and Deposit Growth - As of December 31, 2018, the Bancorp reported total assets of $1.1 billion, with total deposits of $929.8 million[175]. - Total assets increased by $168.9 million (18.2%) during the year ended December 31, 2018, with interest-earning assets rising by $146.9 million (16.9%)[182]. - Total deposits increased by $136.8 million (17.2%) in 2018, reaching $929.8 million, primarily due to the First Personal acquisition[207]. - Total deposit balances averaged $839.5 million for 2018, an increase of $69.3 million (9.0%) from $770.2 million for 2017, with interest expense for deposits rising by $1.7 million (84.5%)[219]. Loan Portfolio and Performance - The Bancorp's loan portfolio totaled $764.4 million, representing 75.1% of interest-earning assets and 82.2% of total deposits[182]. - The Bancorp originated $55.5 million in new fixed-rate mortgage loans for sale during the twelve months ended December 31, 2018, compared to $42.2 million in the previous year[182]. - The Bancorp's impaired loans totaled $5.8 million as of December 31, 2018, an increase from $2.5 million in 2017[191]. - The Bancorp's troubled debt restructured loans increased to $2,031 thousand in 2018 from $535 thousand in 2017, reflecting a significant rise in commercial and residential loans[194]. - The provision for loan losses for 2018 totaled $1,308 thousand, an increase from $1,200 thousand in 2017, with notable contributions from commercial real estate and commercial business segments[200]. - Non-performing loans as of December 31, 2018, totaled $6.9 million, representing 0.90% of total loans and 0.63% of total assets[184]. - Non-performing loans rose to $6,916 thousand at December 31, 2018, compared to $5,223 thousand in 2017, driven by the acquisition of First Personal and other commercial relationships[203]. - The allowance for loan losses (ALL) was $7,962 thousand at December 31, 2018, representing 1.04% of total loans, down from 1.21% in 2017[203]. Capital and Regulatory Compliance - Stockholders' equity rose to $101.5 million at December 31, 2018, a 10.2% increase from $92.1 million in 2017, mainly due to net income and the issuance of shares related to the First Personal acquisition[212]. - The Bancorp's capital ratios exceeded all regulatory requirements, with common equity tier 1 capital at 11.6% and total capital at 12.6% as of December 31, 2018[214]. - The Bancorp's total capital to risk-weighted assets ratio was 12.2% as of December 31, 2018, exceeding the minimum required ratio of 10.0%[215]. Acquisitions and Expansion - The Bancorp completed the acquisition of First Personal Financial Corp. on July 26, 2018, expanding its retail banking network to 19 banking centers[176]. - The acquisition of AJS Bancorp, Inc. was completed on January 24, 2019, further increasing the number of full-service banking centers to 22[179]. - The Bancorp issued a total of 161,875 shares of common stock to former First Personal stockholders, with cash consideration of approximately $8.7 million, resulting in an implied valuation of about $15.6 million for the transaction[178]. Investment and Market Conditions - The Bancorp's investment portfolio totaled $241.8 million, with a 1.1% decrease during 2018 due to market value adjustments and reallocations to support loan growth[205]. - Foreclosed real estate decreased to $1.6 million at December 31, 2018, from $1.7 million in 2017, with net sales totaling $1.6 million during the year[204]. Risk Management - Management has allocated general reserves to both performing and non-performing loans based on historical data and current information available[228]. - Risk factors for non-performing loans are based on projected discounted cash flows or estimated collateral liquidation values, with deficiencies stated as a percentage of total substandard balances[229]. - Historical risk factors for performing loans are calculated as a percentage of average loans over the most recent three years, adjusted for current subjective risks[230]. - Management believes that the Allowance for Loan Losses (ALL) is currently adequate, reflecting current conditions and delinquency trends[231]. Accounting and Forward-Looking Statements - The financial statements are prepared in accordance with U.S. GAAP, measuring financial position in historical dollars without considering inflation impacts[232]. - Forward-looking statements regarding future business prospects and financial performance are subject to risks and uncertainties that could cause actual results to differ materially[233].