Northwest Bancorporation, Inc. Announces First Quarter 2010 Financial Results
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SPOKANE, Wash., April 22, 2010 (GLOBE NEWSWIRE) -- Northwest Bancorporation,
Inc. (the "Company") (OTCBB:NBCT), the bank holding company for Inland Northwest
Bank (the "Bank" or "INB"), today reported financial results for the quarter
ended March 31, 2010.
Net income for the first quarter of 2010 was $586 thousand, compared to a loss
of $256 thousand reported for the first quarter of 2009. After dividends on
preferred stock and related accretion adjustments totaling $169 thousand, the
net income available for common shareholders was $417 thousand compared to a
loss of $343 thousand for the same quarter last year.
Earnings (loss) per diluted share available for common shareholders for the
first quarters of 2010 and 2009 were $0.17 and -$0.14, respectively. For the
year-to-date 2010 and 2009, return on average assets was 0.42% and -0.26%,
respectively, and return on average equity was 4.91% and -3.20%, respectively.
Randall L. Fewel, President & CEO of both the Company and the Bank, said, "We
are extremely pleased with our first quarter results. After five consecutive
quarters of losses, it is gratifying and encouraging to report a profit of $586
thousand."
Fewel said, "The Company saw improvement in net interest income and noninterest
income during the first quarter. The net interest margin improved to 4.04% from
3.40% for the comparable quarter last year. Noninterest income was 1.01% of
average assets in the first quarter versus 0.83% in 2009."
The Bank expensed $500,000 during the first quarter into the Allowance for Loan
Losses (the "ALLL") compared to $1,180,000 during the first quarter of 2009. Net
charge-offs were $407 thousand for the first quarter this year versus $464
thousand in the first quarter of 2009. As of March 31, 2010, the Bank's ALLL was
$7.2 million, or 2.28% of gross loans, compared to $5.5 million, or 1.62% of
gross loans, as of March 31, 2009.
As of March 31, 2010 the Company had assets of $398.2 million, an increase of
$4.5 million, or 1.2%, compared to December 31, 2009 and a decrease of $1.0
million, or 0.2%, compared to March 31, 2009. Deposits at March 31, 2010 were
$343.3 million and net loans were $307.6 million, an increase of $5.6 million,
or 1.6%, compared to December 31, 2009, and $11.9 million, or 3.6%, compared to
March 31, 2009. Net loans decreased $6.5 million, or -2.1%, since year-end and
decreased $24.5 million, or -7.4%, year-over-year.
The Bank's nonperforming assets were $12.4 million at quarter end, representing
3.13% of total assets. Nonperforming assets ("NPAs") are defined as loans on
which the Bank has stopped accruing interest, foreclosed real estate and other
repossessed assets. NPAs at the end of 2009 were $15.3 million representing
3.90% of total assets, and at March 31, 2009, NPAs were $16.6 million,
representing 4.16% of total assets.
"Reducing the level of nonperforming assets continues to be our top priority,"
Fewel said. "Although I wish we could speed up the process, these things take
time and I am pleased with the steady progress we have made in this regard."
One ratio that has been getting a lot of attention lately in the banking
industry is the Texas Ratio, which measures NPAs as a percent of a bank's
capital plus its ALLL. The higher the Texas Ratio, therefore, the more credit
problems there are. "A year ago, on March 31, 2009, INB's Texas Ratio was 36%,"
Fewel said. "Today it is 27%, which represents solid improvement in our credit
quality in one year. Our goal is to once again get it under 10%." Fewel added,
"For point of reference, at the end of 2009, the average Texas Ratio for banks
headquartered in the State of Washington was 100.1%."
Total revenue for the Company was $4.59 million during the first quarter,
representing an increase of $621 thousand, or 15.7%, over the first quarter of
2009. Total revenue is defined as net interest income plus noninterest income.
Core deposits (all deposits except certificates of deposit) ended the quarter at
$181.3 million. This represented an increase of $16.6 million, or 10.1%, over
year-end 2009 core deposits of $164.7 million. On March 31, 2009 core deposits
were $150.1 million. "We are pleased with our growth in core deposits, which
grew $31 million, or nearly 21% year over year," Fewel commented. "We believe
this is a direct result of our outstanding employees who are dedicated to
exceeding customer expectations on a daily basis. In addition, the Bank's
significant investment in state-of-the-art free standing branches over the last
five years has measurably enhanced INB's image and convenience throughout the
Inland Northwest."
Fewel went on to say, "While the first quarter of 2010 was a good quarter for
us, representing a marked improvement over the previous five quarters, we are
mindful of the fact that the recession is not over in the Inland Northwest. We
continue to see many businesses and individuals struggling with the effects of
the poor economy. Historically, our region has tended to lag the national
economy by six to eighteen months, so we expect that it will be 2011 before
meaningful gains are realized here."
Northwest Bancorporation, Inc. is the parent of Inland Northwest Bank (INB), a
Washington state-chartered bank headquartered in Spokane, Washington. INB
operates seven branches in Spokane County, Washington, and four branches in
North Idaho (Kootenai County). INB specializes in meeting the financial needs
of individuals and small to medium-sized businesses, including professional
corporations, by providing a full line of commercial, retail, mortgage and
private banking products and services. The Company's stock is quoted on the OTC
Bulletin Board, http://www.otcbb.com/, and by other financial reporting services
under the symbol "NBCT."
Forward-Looking Statements
This release contains forward-looking statements that are not historical facts
and that are intended to be covered by the safe harbor for "forward-looking
statements" provided by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may include, but are not limited to, statements
about the Company's plans, objectives, expectations and intentions and other
statements contained in this report that are not historical facts and pertain to
the Company's future operating results. When used in this report, the words
"expects," "anticipates,'' ''intends,'' ''plans,'' ''believes,'' ''seeks,''
''estimates'' and similar expressions are generally intended to identify
forward-looking statements. These forward-looking statements are inherently
subject to significant business, economic and competitive uncertainties and
contingencies, many of which are beyond the Company's control. In addition,
these forward-looking statements are subject to assumptions with respect to
future business strategies and decisions that are subject to change. Actual
results may differ materially from the results discussed in these
forward-looking statements because of numerous possible risks and uncertainties.
These include but are not limited to: the possibility of adverse economic
developments that may, among other things, increase default and delinquency
risks in the Company's loan portfolios; shifts in interest rates that may result
in lower interest rate margins; shifts in the demand for the Company's loan and
other products; changes in accounting policies; changes in the monetary and
fiscal policies of the federal government; and changes in laws, regulations and
the competitive environment. These risks and other factors are described in
greater detail in the Company's filings with the Securities and Exchange
Commission, including, without limitation, the Item 1A. Risk Factors section of
the Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2009. Unless legally required, the Company disclaims any obligation to update
any forward-looking statements, whether as a result of new information, future
events or otherwise.
CONTACT: Northwest Bancorporation, Inc.
Randall L. Fewel, President and CEO
(509) 462-3600
Holly Poquette, Chief Financial Officer
(509) 456-8888
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