Local bank’s parent reports loss
Northwest Bancorporation plans for loan charge-off
Northwest Bancorporation on Friday reported a third-quarter loss driven by a substantial increase in provisions for future loan losses.
Northwest, parent of Inland Northwest Bank, lost $611,000, or $804,000 for common shareholders after preferred stock dividends and other adjustments. During the 2008 quarter, the holding company earned $203,000. Per common share, the results were a loss of 34 cents compared with profits of 9 cents in the 2008 quarter.
Although the bank added $2.4 million for loan losses, charge-offs during the quarter fell to $496,000 from $2.8 million in the second quarter.
“Charge-offs may have peaked,” said Randy Fewel, president of the holding company and bank.
Nonperforming assets climbed to $17.4 million, up slightly from second-quarter levels but double the $8.3 million a year earlier.
Assets, at $393 million, increased 1 percent compared with Sept. 30, 2008. Deposits grew 5.2 percent year over year, to $326 million. Total loans were $318 million, down 4.9 percent from a year ago, a drop Fewel attributed to less participation in land, development and construction deals.
He noted Inland increased total revenues for the third quarter, to $4.2 million from $3.9 million a year ago, and for the first nine months of the year despite FDIC premiums more than triple those of 2008.
Also, Inland’s capital ratios have improved over the past year, remaining above regulatory minimums.