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 OAK HARBOR, Wash., Nov. 1 /PRNewswire/ -- InterWest Savings Bank (NASDAQ: IWBK) today reported record net income for the second consecutive year. The bank's earnings for the fiscal year ended Sept. 30, 1993, hit record levels as the bank's net interest margin expanded, lending activity increased and non-performing assets decreased.
 InterWest's fiscal 1993 earnings increased 25 percent to $10.7 million or $1.65 per share compared to $8.5 million or $1.32 per share last year. The bank's fourth quarter net income increased 24 percent to $2.9 million or 45 cents per share up from 2.3 million or 37 cents per share for the same period a year ago. Net income per share figures have been restated to reflect the 15-percent stock split paid May 6, 1993.
 "Lending volume for this year was very strong at $414.3 million compared to $323.2 million last year, surpassing our goal of $400 million," said Stephen M. Walden, president and chief executive officer. The bank's lending volume for the fourth quarter ended Sept. 30, 1993, increased 26 percent to $104.1 million compared to $82.6 million for the same period last year. "In the current rate environment, the bank continues to experience strong demand for construction, purchase and refinance lending."
 "InterWest has continued its reduction of non-performing assets while improving the quality of the loan portfolio," said Walden. At Sept. 30, 1993, the bank's non-performing assets decreased 27 percent to $7.8 million or 0.93 percent of total assets compared to $10.6 million or 1.36 percent of assets for the same period last year. Non-accrual loans and loans more than 90 days past due dropped to $1.4 million compared to $2.0 million for the same period last year.
 InterWest's fourth quarter net interest margin increased to 3.92 percent from 3.65 percent for the same period last year. InterWest's net interest income, after provision for loan losses, increased 21 percent to $7.6 million in the fourth quarter of fiscal 1993 compared to $6.3 million in the fourth quarter a year ago. Net interest income for the fiscal year ended Sept. 30, 1993, increased 32 percent to $30.0 million compared to $22.6 million for the same period last year.
 As of Sept. 30, 1993, assets were $839.0 million compared to $780.0 million at Sept. 30, 1992, an increase of 8 percent. The return on average equity for the 12 months ended Sept. 30, 1993, was 16.40 percent compared to 15.06 percent for the same period last year. The bank's return on average assets was 1.31 percent for the fiscal year ended Sept. 30, 1993, compared to 1.17 percent for the previous fiscal year.
 "Our strong capital position gives us the flexibility to quickly respond to opportunities that may arise in the upcoming fiscal year," said Walden. "We have set aggressive lending and deposit goals and are planning to expand our market presence in Whatcom, Kitsap and Snohomish counties. InterWest's earnings are strong, non-performing assets continue to decrease, lending volume is brisk and new innovative financial products are being introduced. We plan to maintain our momentum in the upcoming year. InterWest will be a company to keep track of in 1994," Walden concluded.
 During fiscal year 1993, InterWest shareholders earned dividends totaling 22 cents per share, a 47-percent increase over the 15 cents per share paid in fiscal 1992. The board of directors declared a cash dividend of $.065 per share to shareholders of record on Oct. 4, 1993, payable on Oct. 12, 1993. InterWest has consistently paid dividends for 16 years.
 Shareholder equity for the fiscal year ended Sept. 30, 1993, stood at $70.0 million and tangible book value was $10.96 per share. The bank's leverage capital ratio is 8.01 percent, well above regulatory minimum.
 InterWest Savings Bank, with headquarters in Oak Harbor, has 27 branch offices in western and north central Washington. The common stock of InterWest Savings Bank trades in the over-the-counter national market system under the NASDAQ symbol "IWBK". InterWest, which was founded in 1957, offers its customers highly personalized banking services within its 13-county market area.
 (Dollars in thousands except per share and share amounts)
 Quarter 12 Months
 Ended Sept. 30, 1993 1992 1993 1992
 Interest income $15,934 $15,380 $63,283 $60,815
 Interest expense $ 8,003 $ 8,849 $31,900 $36,526
 Net interest income
 after provision for
 losses on loans $ 7,601 $ 6,281 $29,984 $22,636
 Other operating income $ 2,091 $ 2,219 $ 7,281 $ 7,655
 Other operating expense $ 5,147 $ 5,071 $20,983 $18,870
 Income tax $ 1,637 $ 1,086 $ 5,613 $ 3,400
 Cumulative effect of
 change in accounting
 for income taxes -- -- -- $ 434
 Net income $ 2,908 $ 2,343 $10,670 $ 8,455
 Net income per share(A) $ 0.45 $ 0.37 $ 1.65 $ 1.32
 Weighted average shares
 outstanding(A) 6,486,234 6,409,081 6,466,541 6,406,079
 Sept. 30, 1993 1992
 Total assets $839,024 $779,981
 Loan receivable, net $595,235 $505,234
 Deposits $659,434 $639,517
 Borrowings $104,753 $ 75,000
 Total shareholders' equity $ 70,050 $ 60,105
 Shareholders' equity/assets
 (percents) 8.34 7.71
 Book value per share(A) $ 10.96 $ 9.47
 (A) All share and per share numbers have been adjusted to reflect the 15-percent stock split paid May 6, 1993.
 -0- 11/1/93
 /CONTACT: Glenn Mouw, chief financial officer, or Gina Dyer, marketing coordinator, 206-679-4181, of InterWest Savings/

CO: InterWest Savings Bank ST: Washington IN: FIN SU: ERN

RB-JH -- SE003 -- 8908 11/01/93 06:30 EST
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Publication:PR Newswire
Date:Nov 1, 1993

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