SPOKANE, Wash., Oct. 22, 2015 (GLOBE NEWSWIRE) -- 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 ended September 30, 2015.
Net income for the third quarter of 2015 was $735 thousand, compared to $976 thousand for the corresponding period in 2014, representing a decrease of $241 thousand, or 24.7%. Excluding nonrecurring merger-related expenses of $98 thousand, net of tax, earnings for the third quarter of 2015 would have been $833 thousand. The decrease in earnings, combined with a 52% increase in the number of shares outstanding resulting from the $20 million capital raise that closed in August 2015, caused earnings per diluted share to decrease 34.8%, from $0.23 for the third quarter of 2014, to $0.15 for the third quarter of 2015.
For the nine months ended September 30, 2015, net income was $2.33 million, compared to $2.32 million for the corresponding period in 2014, representing an increase of $12 thousand, or 0.5%. Excluding nonrecurring merger-related expenses of $261 thousand, net of tax, earnings for the first nine months of 2015 would have been $2.60 million. Earnings per diluted share decreased 5.5%, from $0.55 for the first nine months of 2014, to $0.52 for the first nine months of 2015.
Company President and CEO, Randall Fewel, commented, “Third quarter results are somewhat unusual in that earnings per share is impacted by the expenses and the issuance of stock relating to the acquisition of the Bank of Fairfield, without the corresponding benefit yet of enhanced income from that acquisition. The acquisition closed on October 16, 2015, so our results will not begin to reflect the positive aspects of the combination of the two banks until the fourth quarter results are released.”
Financial highlights
- Successful completion of $20 million capital raise during the third quarter.
- Achieved fifteenth consecutive quarter of profitability, with net income of $735 thousand.
- Total revenue for the quarter was $5.5 million, up 14% over the same period last year and up 4% over the second quarter this year.
- Nonperforming assets equaled 0.27% of total assets, a decrease of 29% year over year.
- Noninterest bearing deposits increased 6% year over year.
- Loans grew by $41 million, or 13%, year over year.
- Book value of the Company’s stock increased 2.1% during the first nine months of the year, to $9.51 per share.
- The market price of the Company’s stock increased $0.79 per share, or 9%, during the first nine months of the year, to $9.44 per share. The price is up $1.52, or 19%, over the price on September 30, 2014.
Balance sheet
As of September 30, 2015, the Company had total assets of $468.7 million, compared to $421.8 million on December 31, 2014 and $421.3 million on September 30, 2014. This represents an increase of $46.9 million, or 11.1%, over year end and an increase of $47.4 million, or 11.2%, year over year. Total assets increased by $19 million during the third quarter of 2015 as a result of the common equity capital raise in connection with the Bank of Fairfield acquisition.
The investment portfolio was $36.2 million as of September 30, 2015, down $6.0 million, or 14.2%, from $42.2 million at December 31, 2014. The decrease reflects a shift in the deployment of capital from investments to loans. The net unrealized gain in the portfolio was $1.1 million, 9.5% lower than the $1.2 million net unrealized gain at year-end 2014.
The net loan portfolio was $362.5 million on September 30, 2015. This represents an increase of $41.5 million, or 12.9%, year over year and an increase of $26.1 million, or 7.7%, from year-end 2014 when the loan portfolio was $336.4 million. The increase from prior periods primarily reflects increased commercial lending activity spread over all major sectors including commercial and industrial loans and owner-occupied and non-owner occupied commercial real estate loans.
Deposits at September 30, 2015 were $384.5 million, an increase of $25.6 million, or 7.1%, compared to September 30, 2014 and an increase of $25.8 million, or 7.2%, compared to December 31, 2014. Core deposits (all deposits except time deposits) ended the quarter at $298.0 million, which is 77.5% of total deposits; this represents an increase of $22.6 million, or 8.2%, since the beginning of the year and an increase of $24.8 million, or 9.1%, over the $273.2 million level on September 30, 2014.
Noninterest bearing deposits, a subset of core deposits, were $100.6 million at quarter end, representing 26.2% of total deposits. This compares to noninterest bearing deposits of $95.2 million, or 26.5% of total deposits, at September 30, 2014, and to $96.4 million, or 26.9% of total deposits, at year-end 2014. The level of noninterest bearing deposits at quarter end represented growth of $5.4 million, or 5.7%, compared to September 30, 2014.
Asset quality, provision and allowance for loan losses
The Bank’s nonperforming assets (“NPAs”) were $1.3 million at quarter end, representing 0.27% of total assets. NPAs are defined as loans on which the Bank has stopped accruing interest and includes foreclosed real estate. NPAs at the end of 2014 were $1.4 million, representing 0.33% of total assets, and at September 30, 2014, NPAs were $1.6 million, representing 0.38% of total assets.
The Bank achieved net loan recoveries of $10 thousand and $72 thousand for the three and nine-month periods ending on September 30, 2015, compared to net loan charge offs of $168 thousand and $383 thousand for the comparable periods in 2014. The provision for loan losses was $60 thousand and $180 thousand for the three and nine-month periods ending on September 30, 2015, compared to $50 thousand and $467 thousand for the comparable periods in 2014. As of September 30, 2015, the allowance for loan losses was $6.0 million, or 1.62% of gross loans. This compares to $5.7 million, or 1.67%, of the loan portfolio as of December 31, 2014.
Capital
Shareholders’ equity increased $21.4 million, or 55.3%, during the first nine months of 2015. The increase primarily reflects the issuance of 2,162,162 shares of the Company's common stock at a purchase price of $9.25 per share, resulting in net proceeds of $19.0 million and earnings retention of $2.3 million. The book value of the Company’s common stock was $9.51 per share on September 30, 2015, up $0.20, or 2.1%, over the $9.31 per share on December 31, 2014, and up $0.37, or 4.0%, over the $9.14 per share on September 30, 2014.
The Bank continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” under newly implemented Basel III and Dodd Frank regulatory standards. As of September 30, 2015, the Bank’s Tier 1 leverage capital to average assets ratio was 10.7%, its common equity Tier 1 (“CET1”) capital ratio was 11.5%, and its total capital to risk-weighted assets ratio was 12.7%. The regulatory requirements to be considered “well-capitalized” for these three ratios are 5.0%, 6.5%, and 10.0%, respectively.
Total revenue
Total revenue was $5.5 million for the third quarter of 2015, compared to $4.9 million for the same period in 2014, representing an increase of $677 thousand, or 13.9%. Total revenue was $15.9 million for the first nine months of 2015, compared to $14.0 million for the same period in 2014, representing an increase of $1.9 million, or 13.5%. Total revenue is defined as net interest income plus noninterest income.
INB President and CEO, Russell Lee, commented, “We are very pleased with the healthy increase in revenue at the Bank this year. It is directly attributable to the outstanding job our commercial bankers are doing in generating high-quality business loans plus a significant increase in volume in our residential mortgage business.”
Net interest income
Net interest income was $4.5 million for the quarter ended September 30, 2015, an increase of $509 thousand, or 12.9%, from the comparable period in 2014. Net interest income was $12.9 million for the nine months ended September 30, 2015, an increase of $1.5 million, or 12.9%, from the comparable period in 2014. The net interest margin (the “NIM,” defined as interest income minus interest expense, divided by average earning assets) decreased slightly from 4.13% in the third quarter of 2014 to 4.12% in the third quarter of 2015. Year-to-date, the NIM is 4.12% this year compared to 4.09% last year through September.
“We are working hard to maintain our net interest margin in a very challenging interest rate environment,” Lee commented. “Our strategy has been to shift earning assets from lower yielding investments to higher yielding loans without extending out further on the yield curve, and we are gratified by the results so far.”
Noninterest income
Noninterest income increased by $168 thousand, or 18.4%, from $913 thousand in the third quarter last year, to $1.08 million in the third quarter this year. Noninterest income for the first nine months of 2015 was $3.0 million, compared to $2.6 million for the same period in 2014. This represents an improvement in noninterest income of $417 thousand, or 16.3%, year over year. The increase in noninterest income was primarily related to higher gains from sales of residential mortgage loans, which increased by $416 thousand, or 71%, and higher debit and credit card income, which increased $87 thousand, or 10%. These increases are partially offset by lower service charges on deposits, which decreased $47 thousand, or 7%. Net gains on sales of investment securities were $0 and $65 thousand for the nine months ended September 30, 2015 and 2014, respectively.
“Residential mortgage volume topped $42 million for INB for the first nine months this year,” Lee said, “which represents a 41% increase over the same period last year. In addition, residential construction lending is up 36% this year, topping $31 million.”
Noninterest expense
Noninterest expense for the third quarter increased by $995 thousand, or 29.3%, from $3.4 million last year to $4.4 million this year. Noninterest expense for the nine months ending September 30, 2015 was $12.2 million, compared to $10.2 million for the same period in 2014, an increase of $2.0 million or 20.3%. The primary contributors to the rise in noninterest expenses were higher employee-related costs, advertising and promotion expenses, sundry losses, deposit and loan account costs, as well as higher legal, accounting and other professional fees related to the acquisition of Fairfield Financial Holdings Corp. (“Fairfield”). Total acquisition-related expenses in 2015 were $395 thousand, on a pre-tax basis, compared to none in the previous year.
“INB has added thirteen employees over the past year as we intensify our efforts at being the premier community bank focused solely on the Inland Northwest,” Lee commented. “This investment in human resources, while adding to the noninterest expense of the Bank, is also enabling us to significantly grow revenue. In addition, we’ve increased our advertising and promotion expense by 42% this year, in an effort to raise awareness of the INB brand in the face of all the market disruption in our region lately due to several bank mergers.”
Key ratios
Return on average assets (“ROA”) for the third quarter this year was 0.63% compared to 0.82% in the second quarter and compared to 0.94% in the third quarter last year. For the nine months ended September 30, 2015, ROA was 0.70%, compared to 0.77% for the comparable period in 2014.
Return on average equity (“ROE”) was 5.86% for the third quarter this year compared to 9.04% in the second quarter and 10.61% for the third quarter last year. ROE was 6.97% for the first nine months this year compared to 8.58%, for the same period last year.
Yield on earning assets was 4.63% for the first nine months of the year, compared to 4.68% for the same period last year, and the cost of funds was 0.71% this year versus 0.81% last year.
Fairfield Financial Holdings Corp. and Bank of Fairfield
On October 19, 2015, the Company announced the closing of the acquisition of Fairfield Financial Holdings Corp., the holding company of Bank of Fairfield. This combination will expand the Company’s geographic footprint in Eastern Washington and secure its position as the largest community bank solely focused on the Inland Northwest region. The combined Company has approximately $600 million in total assets and will operate fifteen branches in Eastern Washington and North Idaho.
Summary
Fewel summarized the quarterly results by saying, “The fundamentals for the Company in the third quarter were excellent. Revenue, loans, assets and deposits all showed nice growth. Net income was off a bit due to our strategic investment in the future of the Company by adding some top-notch bankers and by preparing for the addition of Bank of Fairfield to our franchise. INB’s new CEO, Russ Lee, has hit the ground running and is totally focused on profitably growing our Company. We believe our future has never looked brighter.”
About Northwest Bancorporation, Inc.
Northwest Bancorporation, Inc. is the parent company of Inland Northwest Bank, a state-chartered community bank which currently operates twelve branches in Eastern Washington, and four branches in Northern Idaho. INB specializes in meeting the financial needs of individuals and small to medium-sized businesses, including professional corporations and agriculture-related operations, by providing a full line of commercial, retail, agricultural, and mortgage and private banking products and services. More information about INB can be found on its website at www.inb.com. The Company’s stock is quoted on the OTC Market’s Pink Marketplace, www.otcmarkets.com, under the symbol NBCT.
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 to: the businesses of the Company and Fairfield may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; the expected growth opportunities or cost savings from the acquisition may not be fully realized or may take longer to realize than expected; operating costs, customer losses and business disruption following the acquisition, including adverse effects on relationships with employees, may be greater than expected; 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; 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.
Northwest Bancorporation, Inc. | |||||||||||||
Consolidated Statements of Financial Condition | |||||||||||||
(Unaudited) | |||||||||||||
Sep. 30, | Dec. 31, | Sep. 30, | |||||||||||
(dollars in thousands) | 2015 | 2014 | 2014 | ||||||||||
Assets: | |||||||||||||
Cash and due from banks | $ | 15,803 | $ | 14,398 | $ | 13,895 | |||||||
Interest bearing deposits | 29,361 | 3,384 | 15,593 | ||||||||||
Time deposits held for investment | 2,185 | 1,935 | 1,935 | ||||||||||
Securities available for sale | 34,033 | 40,287 | 42,468 | ||||||||||
Federal Home Loan Bank stock, at cost | 876 | 1,148 | 1,160 | ||||||||||
Loans receivable, net | 362,461 | 336,421 | 321,006 | ||||||||||
Loans held for sale | 1,883 | 740 | 1,463 | ||||||||||
Premises and equipment, net | 14,317 | 14,888 | 15,025 | ||||||||||
Accrued interest receivable | 1,451 | 1,322 | 1,363 | ||||||||||
Foreclosed real estate | 200 | 1,050 | 1,250 | ||||||||||
Bank-owned life insurance | 4,289 | 4,201 | 4,250 | ||||||||||
Other assets | 1,824 | 2,033 | 1,923 | ||||||||||
Total assets | $ | 468,683 | $ | 421,807 | $ | 421,331 | |||||||
Liabilities: | |||||||||||||
Deposits: | |||||||||||||
Noninterest bearing deposits | $ | 100,625 | $ | 96,386 | $ | 95,182 | |||||||
Interest bearing transaction and savings deposits | 197,394 | 179,016 | 177,997 | ||||||||||
Time deposits | 86,477 | 83,278 | 85,671 | ||||||||||
384,496 | 358,680 | 358,850 | |||||||||||
Accrued interest payable | 102 | 124 | 130 | ||||||||||
Borrowed funds | 20,292 | 21,327 | 21,672 | ||||||||||
Other liabilities | 3,690 | 2,963 | 2,981 | ||||||||||
Total liabilities | 408,580 | 383,094 | 383,633 | ||||||||||
Shareholders' equity: | |||||||||||||
Common stock | 52,093 | 32,960 | 32,831 | ||||||||||
Retained earnings | 7,281 | 4,947 | 4,009 | ||||||||||
Accumulated other comprehensive income | 729 | 806 | 858 | ||||||||||
Total shareholders' equity | 60,103 | 38,713 | 37,698 | ||||||||||
Total liabilities and shareholders' equity | $ | 468,683 | $ | 421,807 | $ | 421,331 | |||||||
Northwest Bancorporation, Inc. | |||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
Sep. 30, | Jun. 30, | Sep. 30, | Sep. 30, | Sep. 30, | |||||||||||||||||
(dollars in thousands, except per share data) | 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Interest and dividend income: | |||||||||||||||||||||
Loans receivable | $ | 4,708 | $ | 4,544 | $ | 4,147 | $ | 13,616 | $ | 11,938 | |||||||||||
Investment securities | 259 | 275 | 345 | 831 | 1,085 | ||||||||||||||||
Other | 24 | 16 | 13 | 52 | 32 | ||||||||||||||||
Total interest and dividend income | 4,991 | 4,835 | 4,505 | 14,499 | 13,055 | ||||||||||||||||
Interest expense: | |||||||||||||||||||||
Deposits | 339 | 374 | 358 | 1,052 | 1,053 | ||||||||||||||||
Borrowed funds | 186 | 186 | 190 | 556 | 580 | ||||||||||||||||
Total interest expense | 525 | 560 | 548 | 1,608 | 1,633 | ||||||||||||||||
Net interest income | 4,466 | 4,275 | 3,957 | 12,891 | 11,422 | ||||||||||||||||
Provision for loan losses | 60 | 60 | 50 | 180 | 467 | ||||||||||||||||
Noninterest income: | |||||||||||||||||||||
Service charges on deposits | 217 | 229 | 238 | 663 | 710 | ||||||||||||||||
Gains from sale of loans, net | 381 | 375 | 248 | 1,000 | 584 | ||||||||||||||||
Gain on investment securities, net | - | - | - | - | 65 | ||||||||||||||||
Other noninterest income | 483 | 445 | 427 | 1,317 | 1,204 | ||||||||||||||||
Total noninterest income | 1,081 | 1,049 | 913 | 2,980 | 2,563 | ||||||||||||||||
Noninterest expense: | |||||||||||||||||||||
Salaries and employee benefits | 2,223 | 2,159 | 1,740 | 6,468 | 5,242 | ||||||||||||||||
Occupancy and equipment | 361 | 347 | 325 | 1,024 | 998 | ||||||||||||||||
Depreciation and amortization | 275 | 279 | 284 | 831 | 867 | ||||||||||||||||
Advertising and promotion | 185 | 171 | 114 | 472 | 332 | ||||||||||||||||
FDIC assessments | 62 | 64 | 69 | 187 | 207 | ||||||||||||||||
Gain on foreclosed real estate, net | - | (142 | ) | - | (142 | ) | (150 | ) | |||||||||||||
Other noninterest expense | 1,283 | 1,099 | 862 | 3,408 | 2,684 | ||||||||||||||||
Total noninterest expense | 4,389 | 3,977 | 3,394 | 12,248 | 10,180 | ||||||||||||||||
Income before income taxes | 1,098 | 1,287 | 1,426 | 3,443 | 3,338 | ||||||||||||||||
Income tax expense | 363 | 385 | 450 | 1,109 | 1,016 | ||||||||||||||||
NET INCOME | $ | 735 | $ | 902 | $ | 976 | $ | 2,334 | $ | 2,322 | |||||||||||
Earnings per common share - basic | $ | 0.15 | $ | 0.22 | $ | 0.24 | $ | 0.53 | $ | 0.56 | |||||||||||
Earnings per common share - diluted | $ | 0.15 | $ | 0.21 | $ | 0.23 | $ | 0.52 | $ | 0.55 | |||||||||||
Weighted average common shares outstanding - basic | 4,956,692 | 4,157,632 | 4,121,071 | 4,426,912 | 4,118,818 | ||||||||||||||||
Weighted average common shares outstanding - diluted | 5,046,590 | 4,255,889 | 4,199,334 | 4,519,232 | 4,190,688 | ||||||||||||||||
Northwest Bancorporation, Inc. | |||||||||||||||||||||||||||||
Key Financial Ratios and Data | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
Sep. 30, | Jun. 30, | Sep. 30, | Sep. 30, | Sep. 30, | |||||||||||||||||||||||||
(dollars in thousands, except per share data) | 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
PERFORMANCE RATIOS (annualized) | |||||||||||||||||||||||||||||
Return on average assets | 0.63 | % | 0.82 | % | 0.94 | % | 0.70 | % | 0.77 | % | |||||||||||||||||||
Return on average equity | 5.86 | % | 9.04 | % | 10.61 | % | 6.97 | % | 8.58 | % | |||||||||||||||||||
Yield on earning assets | 4.60 | % | 4.72 | % | 4.71 | % | 4.63 | % | 4.68 | % | |||||||||||||||||||
Cost of funds | 0.68 | % | 0.74 | % | 0.80 | % | 0.71 | % | 0.81 | % | |||||||||||||||||||
Net interest margin | 4.12 | % | 4.18 | % | 4.13 | % | 4.12 | % | 4.09 | % | |||||||||||||||||||
Noninterest income to average assets | 0.93 | % | 0.96 | % | 0.88 | % | 0.89 | % | 0.85 | % | |||||||||||||||||||
Noninterest expense to average assets | 3.78 | % | 3.62 | % | 3.28 | % | 3.65 | % | 3.37 | % | |||||||||||||||||||
Provision expense to average assets | 0.05 | % | 0.05 | % | 0.05 | % | 0.05 | % | 0.15 | % | |||||||||||||||||||
Efficiency ratio (1) | 79.1 | % | 74.7 | % | 69.7 | % | 77.2 | % | 72.8 | % | |||||||||||||||||||
Sep. 30, | Dec. 31, | Sep. 30, | |||||||||||||||||||||||||||
2015 | 2014 | 2014 | |||||||||||||||||||||||||||
ASSET QUALITY RATIOS AND DATA | |||||||||||||||||||||||||||||
Nonaccrual loans | $ | 1,052 | $ | 354 | $ | 348 | |||||||||||||||||||||||
Foreclosed real estate | $ | 200 | $ | 1,050 | $ | 1,250 | |||||||||||||||||||||||
Nonperforming assets | $ | 1,252 | $ | 1,404 | $ | 1,598 | |||||||||||||||||||||||
Loans 30-89 days past due and on accrual | $ | 733 | $ | 3,421 | $ | 2,627 | |||||||||||||||||||||||
Restructured loans | $ | 5,748 | $ | 5,023 | $ | 5,050 | |||||||||||||||||||||||
Allowance for loan losses | $ | 5,980 | $ | 5,728 | $ | 5,887 | |||||||||||||||||||||||
Nonperforming assets to total assets | 0.27 | % | 0.33 | % | 0.38 | % | |||||||||||||||||||||||
Allowance for loan losses to total loans | 1.62 | % | 1.67 | % | 1.80 | % | |||||||||||||||||||||||
Allowance for loan losses to nonaccrual loans | 568.44 | % | 1618.08 | % | 1691.67 | % | |||||||||||||||||||||||
Net charge-offs | $ | -10 | (2 | ) | $ | 168 | (2 | ) | $ | -72 | (3 | ) | $ | 383 | (3 | ) | |||||||||||||
Net charge-offs to average loans (annualized) | -0.01 | % | (2 | ) | 0.21 | % | (2 | ) | -0.03 | % | (3 | ) | 0.16 | % | (3 | ) | |||||||||||||
CAPITAL RATIOS AND DATA | |||||||||||||||||||||||||||||
Common shares outstanding at period end | 6,319,794 | 4,157,632 | 4,124,325 | ||||||||||||||||||||||||||
Book value per common share | $ | 9.51 | $ | 9.31 | $ | 9.14 | |||||||||||||||||||||||
Tangible common equity | $ | 60,103 | $ | 38,713 | $ | 37,698 | |||||||||||||||||||||||
Shareholders' equity to total assets | 12.8 | % | 9.2 | % | 8.9 | % | |||||||||||||||||||||||
Total capital to risk-weighted assets (3) | 12.8 | % | 12.6 | % | 13.3 | % | |||||||||||||||||||||||
Tier 1 capital to risk-weighted assets (3) | 11.5 | % | 11.4 | % | 12.2 | % | |||||||||||||||||||||||
Tier 1 common equity ratio (3) | 11.5 | % | 11.4 | % | 12.2 | % | |||||||||||||||||||||||
Tier 1 leverage capital ratio (3) | 10.7 | % | 11.2 | % | 11.2 | % | |||||||||||||||||||||||
DEPOSIT RATIOS AND DATA | |||||||||||||||||||||||||||||
Core deposits (4) | $ | 298,019 | $ | 275,402 | $ | 273,179 | |||||||||||||||||||||||
Core deposits to total deposits | 77.5 | % | 76.8 | % | 76.1 | % | |||||||||||||||||||||||
Noninterest bearing deposits to total deposits | 26.2 | % | 26.9 | % | 26.5 | % | |||||||||||||||||||||||
Net loan to deposit ratio | 94.3 | % | 93.8 | % | 89.5 | % | |||||||||||||||||||||||
Notes: | |||||||||||||||||||||||||||||
(1 | ) | Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income). | |||||||||||||||||||||||||||
(2 | ) | Net charge-offs for the three-month period. | |||||||||||||||||||||||||||
(3 | ) | Regulatory capital ratios are reported for Inland Northwest Bank. | |||||||||||||||||||||||||||
(4 | ) | Core deposits include all deposits except time deposits. | |||||||||||||||||||||||||||