Bank of the Northwest Announces 100% Increase in 2nd Quarter Earnings.Business Editors PORTLAND Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Ore.--(BUSINESS WIRE)--July 11, 2001 Bank of the Northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. (Nasdaq:BKNW) reported record earnings of $695,000, or $.29 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the 2nd quarter of 2001, up 100% over the same quarter last year when earnings reached $347,000, or $.17 per diluted share. For the first six months of 2001, net income increased by 112% to $1,285,000, a gain of $680,000 when comparing current results with the prior year. "The 2nd quarter was an excellent period for the Bank", said Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Dan Durkin. "Despite the continued interest rate movements by the Federal Reserve, Bank of the Northwest has increased its net interest margin from 4.21% to 4.65% compared to the same quarter last year. This margin improvement, combined with outstanding balance sheet growth, contributed significantly to the Bank's rising financial performance." Durkin attributed the increase in the net interest margin to improvements in the mix of assets and liabilities, including an increase over the past year in the ratio of loans to earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , and an increase in lower cost funding sources. He also noted that the Bank has managed its balance sheet and interest rate risk position such that changes in interest rates have had a minimal effect on earnings. Loans grew by $12 million during the quarter, at an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. pace of 27%. "The Bank's disciplined sales focus and growing reputation for delivering quality service continues to draw new banking relationships to the Bank," noted Chris CHRIS Chemical Hazards Response Information System (US DoD) CHRIS California Historical Resources Information System CHRIS Computerized Human Resources Information System CHRIS Command Human Resources Intelligence System Rasmussen, President. Year-over-year, loans have grown by $53 million, or 38%. As noted in an earlier release, the Bank recently announced the launch of its Private Banking Group and Rasmussen added "we see this market as an important component of our growth in the future." Similar success can be seen on the deposit side of the Bank, with deposits growing by $19 million over the prior quarter. In addition, deposit activity spurred an increase in service charge fee income, resulting in a 44% increase in non-interest income on a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis. Consistent with prior periods, credit quality remained very strong with only .04% of total assets classified as non-performing. The Bank has yet to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. any net loan charge-off's in its four and a half year history, and the loan loss reserve remains strong at 1.36% of total loans. As earlier announced, the Board of Directors recently approved an 11 for 10 stock split for all shareholders of record as of July July: see month. 12, 2001. The additional shares will be issued on July 26, 2001. This split is not reflected in per share data included in this release. On a post-split, re-stated basis, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of would be $.26 and $.16 for the three months ended June June: see month. 30, 2001 and 2000, respectively. Bank of the Northwest is a locally owned and managed full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. commercial bank that opened for business in October October: see month. of 1996. The Bank is headquartered in Downtown Portland Downtown Portland is located on the west bank of the Willamette River in Portland, Oregon. It is in the northeastern corner of the southwest section of the city and is where most of its high-rise buildings are found. and serves the needs of both businesses and individuals throughout the Portland metropolitan area The Portland-Vancouver, Oregon-Washington, Metropolitan Statistical Area, also known as the Portland metropolitan area or Greater Portland, is an urban area in the U.S. states of Oregon and Washington centered around the city of Portland, Oregon. . Bank of the Northwest operates five branches; Downtown Portland in the Pioneer Tower Building; Northwest Portland at 21st and Burnside; Raleigh Raleigh (rôl`ē, räl`ē), city (1990 pop. 207,951), state capital, and seat of Wake co., central N.C.; the site was selected for the capital in 1788, and the city was laid out and inc. 1792. Hills; Lake Oswego Lake Os·we·go A city of northwest Oregon, a residential suburb of Portland. Population: 35,800. in the Lake Grove Lake Grove is the name of several towns in the United States:
An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors BKNW, and its web site can be found at www.bknw.com. This press release contains statements regarding Bank of the Northwest's plans and future activities, which are subject to various risks and uncertainties. The Bank's actual results may differ, perhaps materially, from those stated or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by statements in this release. Factors that could cause or contribute to such differences include, but are not limited to, the following: delays or other problems in implementing the Bank's growth strategy; general economic conditions that could result in increased loan losses; competitive factors and pricing pressures; an inability to attract new deposits and loans; interest rate fluctuations; changes in technology; and other factors described in the Bank's reports, including Form 10-QSB and the registration statement on Form 10-SB that the Bank has filed with the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. .
BANK OF THE NORTHWEST
FINANCIAL HIGHLIGHTS
(Amounts in 000's, except per share data)
Balance Sheet
At June 30 (unaudited) 2001 2000 Change
---- ---- ------
Total Assets $ 291,952 $ 227,509 28.3%
Loans Net of Unearned Income 195,796 142,292 37.6%
Reserve for Loan Loss (2,660) (2,039) 30.5%
Net Loans 193,136 140,253 37.7%
Total Deposits 221,353 189,332 16.9%
Total Stockholders' Equity 23,082 14,301 61.4%
Earnings and Per Share Data
For Quarter Ended June 30
(unaudited) 2001 2000 Change
---- ---- ------
Net Interest Income $ 3,012 $ 2,264 33.0%
Provision for Possible Loan Loss 120 218 -45.0%
Non-interest Income 229 168 36.3%
Non-interest Expense 2,030 1,680 20.8%
Pre-tax Income 1,091 534 104.3%
Provision for Income Taxes 396 187 111.8%
Net Income $ 695 $ 347 100.3%
Basic Earnings per Share $ 0.30 $ 0.18 66.7%
Diluted Earnings per Share 0.29 0.17 70.6%
Book Value per Share, Average Basic
Shares Outstanding 10.07 7.50 34.3%
Book Value per Share, Period End
Basic Shares Outstanding 9.76 7.50 30.1%
Average Shares
Outstanding--Basic 2,290,931 1,906,001 20.2%
Average Shares
Outstanding--Diluted 2,435,478 2,000,326 21.8%
Earnings and Per Share Data
For the Six Months Ended June 30
(unaudited) 2001 2000 Change
---- ---- ------
Net Interest Income $ 5,798 $ 4,324 34.1%
Provision for Possible Loan Loss 285 358 -20.4%
Non-interest Income 451 314 43.6%
Non-interest Expense 3,937 3,350 17.5%
Pre-tax Income 2,027 930 118.0%
Provision for Income Taxes 742 325 128.3%
Net Income $ 1,285 $ 605 112.4%
Basic Earnings per Share $ 0.61 $ 0.32 90.6%
Diluted Earnings per Share 0.57 0.30 90.0%
Book Value per Share,
Average Basic Shares
Outstanding 10.95 7.51 45.7%
Book Value per Share,
Period End Basic Shares
Outstanding 9.76 7.50 30.1%
Average Shares
Outstanding--Basic 2,108,367 1,903,131 10.8%
Average Shares
Outstanding--Diluted 2,240,689 2,020,010 10.9%
Quarterly Financial Ratios 2001 2000 Change
---- ---- ------
Return on Average Equity 12.77% 9.95% 2.83%
Return on Average Assets 1.03% 0.73% 0.30%
Net Interest Margin 4.65% 4.21% 0.44%
Efficiency Ratio 62.63% 69.08% -6.44%
Loan Loss Reserve/
Total Loans 1.36% 1.43% -0.07%
Loan Loss Reserve/
Non-Performing Assets 2313.04% N/A N/A
Non-Performing Assets/
Total Assets 0.04% 0.00% 0.04%
Net Charge-Offs/
Average Loans 0.00% 0.00% 0.00%
BANK OF THE NORTHWEST
BALANCE SHEET
(Amounts in 000's)
ASSETS
June 30, June 30,
2001 2000
-------------- -------------
Cash and non-interest bearing
due from banks $ 9,356 $ 7,183
Federal funds sold and
resale agreements 5,990 15,110
Investments 79,621 61,362
Total loans 195,796 142,292
Reserve for loan losses (2,660) (2,039)
-------------- -------------
-------------- -------------
Loans, net 193,136 140,253
-------------- -------------
Other assets 3,849 3,601
-------------- -------------
Total assets $ 291,952 $ 227,509
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LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing deposits $ 55,799 $ 36,468
Interest-bearing deposits 165,554 152,864
-------------- -------------
Total deposits 221,353 189,332
Other liabilities 47,517 23,876
-------------- -------------
Total liabilities 268,870 213,208
-------------- -------------
Stockholders' equity 23,082 14,301
-------------- -------------
Total liabilities and
stockholders' equity $ 291,952 $ 227,509
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