Northwest Bancorporation, Inc. (OTC Pink: NBCT) (the “Company”), the holding company of Inland Northwest Bank (the “Bank” or “INB”), today reported financial results for the quarter and year ended December 31, 2015. In the fourth quarter, the Company completed its acquisition of Fairfield Financial Holdings Corp. (“Fairfield”) and its wholly-owned subsidiary, Bank of Fairfield. This acquisition, combined with the Bank’s own organic growth, resulted in year-end assets of $610.9 million, up 45% over the previous year-end assets of $421.8 million.
Net income for the fourth quarter of 2015 was $726 thousand, compared to $735 thousand for the previous quarter and $938 thousand for the fourth quarter of 2014. Excluding nonrecurring fourth quarter acquisition expenses and costs related to the Company’s CEO succession plan of $556 thousand, net of tax, earnings for the fourth quarter of 2015 would have been $1.28 million. The decrease in quarterly earnings (including nonrecurring items), combined with a 52% increase in the number of shares outstanding resulting from the $20 million capital raise that closed in August 2015, resulted in earnings per diluted share of $0.11 for the fourth quarter of 2015, down from $0.22 for the fourth quarter of 2014.
For the year ended December 31, 2015, net income was $3.06 million, compared to $3.26 million for the corresponding period in 2014, representing a decrease of $200 thousand, or 6.1%. Excluding nonrecurring merger and succession related expenses of $851 thousand, net of tax, earnings for 2015 would have been $3.91 million, representing an increase of $651 thousand, or 20.0% over the previous year. Earnings per diluted share decreased 21.8%, from $0.78 in 2014, to $0.61 in 2015; without the nonrecurring expenses noted above, earnings per diluted share would have been $0.78 in 2015.
Company President and CEO, Russell Lee, commented, “We were very excited to welcome the customers and employees of the Bank of Fairfield to INB in the fourth quarter. With the acquisition closing on October 16, 2015, our financial results were colored with merger-related expenses, but we are already seeing the positive effects of the business combination at INB where fourth quarter earnings exceeded the same period in 2014 by 48%, excluding nonrecurring merger-related costs. As we complete a very momentous 2015, we would also like to thank Randall Fewel who completed his career as CEO of the Company on December 31st after 21 years of service to the customers, employees and shareholders of the Company. Randy’s great work at INB will be foundational for many years to come.”
Successful completion of $20 million capital raise during the third quarter.
Completed the acquisition of Fairfield on October 16, 2015
Achieved sixteenth consecutive quarter of profitability, with net income of $726 thousand.
Total revenue for the year was $22.8 million, up 20% year over year.
Organic loan growth (excluding Fairfield loans) was $32 million, or 9.4%, during 2015.
Noninterest bearing deposits grew by $20 million and now represent 30% of total deposits.
Market price of stock increased $1.10 per share, or 12.7%, during 2015, to $9.75.
Market capitalization of stock ended the year at $62.1 million, an increase of $26.1 million.
Forward-Looking Statements: This release contains forward-looking statements that are not historical facts and that are intended to be “forward-looking statements” as that term is defined 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 release that are not historical facts and pertain to the Company’s future operating results. When used in this release, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally intended to identify forward-looking statements. Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These include but are not limited t : 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; shifts in the rate of inflation; shifts in the demand for the Company’s loan and other products; unforeseen increases in costs and expenses; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment. 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.
For more information contact:
Russell A. Lee, President and CEO
Holly Poquette, Chief Financial Officer