Bank of the Northwest Announces 131% Increase in Net Operating Income.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)--Oct. 11, 2000 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. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BKNW) announced today that Net Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the third quarter, excluding a non-recurring expense item relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the management contract of the Bank's late Chairman, was a record $448,911, a 131% increase over the same period in 1999. 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. Operating Earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before Per Share, excluding the non-recurring item, increased 120% to $ .22 per share. For the nine months ending September September: see month. 30, 2000, Net Operating Income excluding the non-recurring item, increased to $1.05 million, a 250% increase over the $310 thousand for the comparable period in 1999. Chairman and Chief Executive Officer Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. J. Durkin attributed the rapid earnings increases to continued strong growth in loans, deposits and non-interest income combined with moderation in the Bank's expense growth. "The significant investments we made in our first three years of operations are now resulting in volume increases that substantially outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, expense growth," noted Durkin. "We are very pleased with the resulting core earnings growth that our earlier investments are now generating." Return on Equity, excluding non-recurring items, has risen rapidly throughout 2000, from 7% in the first quarter, to 10% in the second quarter, to 12.4% in the third quarter. Durkin also noted that ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. exceeded 14% for the month of September. Core growth in business volumes continued its rapid pace, with loans and deposits increasing 35% over the past year. Careful balance sheet management has resulted in a significant improvement in the Net Interest Margin, which increased from 4.2% in the second quarter to 4.5% in the third quarter. This increase was primarily driven by improvement in the Bank's liability mix, with lower-cost sources of funds increasing more rapidly than higher-cost funding sources. As announced previously, the Bank took a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge during the third quarter for deferred compensation expense related to the management contract of former 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. Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and E. Polzin, who died in July July: see month. . Net operating income, as reported above, excludes the effect of this one-time charge. When including the charge, net income for the nine months ending September 30, 2000 was $747 thousand, representing an increase of 141% over the $310 thousand for the corresponding period of 1999. 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 businesses, professionals and individuals. Bank of the Northwest operates five branches in the Portland area: Pioneer Tower, NW 21st and West 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 Grove Lake Grove is the name of several towns in the United States:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. under the ticker symbol Ticker Symbol 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. The Bank's web site can be found at www.bknw.com.
FINANCIAL HIGHLIGHTS
BANK OF THE NORTHWEST
(Dollars in thousands, except per share data)
Balance Sheet
At September 30
(unaudited)
2000 1999 Change
------- ------- ------
Total Assets 229,545 177,295 29.5%
Gross Loans 149,317 110,968 34.6%
Reserve for Loan Loss (2,225) (1,603) 38.8%
Total Loans (net of reserve) 147,092 109,365 34.5%
Total Deposits 196,515 145,608 35.0%
Total Stockholders' Equity 14,757 13,739 7.4%
Earnings and Per Share Data
For Quarter Ended September 30
(unaudited)
2000 1999 Change
----- ----- ------
Interest Income 4,787 3,107 54.1%
Interest Expense 2,328 1,335 74.4%
Net Interest Income 2,459 1,772 38.8%
Provision for
Possible Loan Loss 186 195 -4.6%
Noninterest Income 188 110 70.9%
Noninterest Expense 1,747 1,393 25.4%
Pre-tax Operating Income 714 294 142.9%
Net Operating Income 449 194 131.4%
Non-recurring expense,
Net of tax 307 0 N/A
Net Income 142 194 -26.8%
Basic EPS, Excluding
Non-recurring Item 0.24 0.10 140.0%
Diluted EPS, Excluding
Non-recurring Item 0.22 0.09 144.4%
Basic Earnings per Share 0.07 0.10 -30.0%
Diluted Earnings per Share 0.07 0.09 -22.2%
Weighted Average Shares
Outstanding--Basic 1,906,011 1,896,032 0.5%
Weighted Average Shares
Outstanding--Diluted 2,023,889 2,043,788 -1.0%
Earnings and Per Share Data
For the Nine Months Ended September 30
(unaudited)
2000 1999 Change
------ ----- ------
Interest Income 13,338 8,300 60.7%
Interest Expense 6,555 3,574 83.4%
Net Interest Income 6,783 4,726 43.5%
Provision for
Possible Loan Loss 544 565 -3.7%
Noninterest Income 502 273 83.9%
Noninterest Expense 5,097 3,963 28.6%
Pre-tax Operating Income 1,644 471 249.0%
Net Operating Income 1,054 310 240.0%
Non-recurring expense,
Net of tax 307 0 N/A
Net Income 747 310 141.0%
Basic EPS, Excluding
Non-recurring Item 0.56 0.16 250.0%
Diluted EPS, Excluding
Non-recurring Item 0.52 0.15 246.7%
Basic Earnings per Share 0.39 0.16 143.8%
Diluted Earnings per Share 0.37 0.15 146.7%
Weighted Average Shares
Outstanding--Basic 1,904,095 1,895,729 0.4%
Weighted Average Shares
Outstanding--Diluted 2,021,307 2,035,952 -0.7%
Quarterly Financial Ratios
Return on Equity 3.85% 5.65% -1.80%
Return on Equity, Excluding
Non-recurring Item 12.43% 5.65% 6.78%
Return on Assets 0.78% 0.44% 0.34%
Net Interest Margin 4.50% 4.60% -0.10%
Efficiency Ratio, Excluding
Non-recurring Item 66.00% 74.02% -8.02%
Loan Loss Reserve/Total Loans 1.49% 1.44% 0.05%
Non-Performing Assets/Total Assets 0.00% 0.00% 0.00%
Net Charge-Offs/Average Loans 0.00% 0.00% 0.00%
BANK OF THE NORTHWEST
STATEMENT OF OPERATIONS
FOR THE QUARTER ENDED
(Amounts in 000's)
Sept. 30, Sept. 30,
2000 1999
Interest income $4,787 $3,107
Interest expense 2,328 1,335
-------- --------
Net interest income 2,459 1,772
Loan loss provision 186 195
Noninterest income 188 110
Noninterest expense 1,747 1,393
-------- --------
Pre-tax operating income 714 294
Income tax expense 265 100
-------- --------
Net operating income $449 $194
-------- --------
Non-recurring items, net of tax 307 0
-------- --------
Net income 142 194
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BANK OF THE NORTHWEST
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED
(Amounts in 000's)
Sept. 30, Sept. 30,
2000 1999
Interest income $13,338 $8,300
Interest expense 6,555 3,574
-------- --------
Net interest income 6,783 4,726
Loan loss provision 544 565
Noninterest income 502 273
Noninterest expense 5,097 3,963
Pre-tax operating income 1,644 471
Income tax expense 590 161
-------- --------
Net operating income $1,054 $310
-------- --------
Non-recurring items, net of tax 307 0
-------- --------
Net income 747 310
======== ========
BANK OF THE NORTHWEST
BALANCE SHEET
(Amounts in 000's)
ASSETS
Sept. 30, Sept. 30,
2000 1999
Cash and non-interest
bearing due from banks $7,743 $5,836
Federal funds sold and
Resale agreements 4,225 16,355
Investments 66,699 42,461
Total loans 149,317 110,968
Reserve for loan losses (2,225) (1,603)
Loans, net 147,092 109,365
Other assets 3,786 3,278
-------- --------
Total assets $229,545 $177,295
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing deposits $43,005 $31,021
Interest-bearing deposits 153,510 114,587
Total deposits 196,515 145,608
Other liabilities 18,273 17,948
Total liabilities $214,788 $163,556
Stockholders equity $14,757 $13,739
Total liabilities and
stockholders equity $229,545 $177,295
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