SPOKANE, Wash., Dec. 31, 2013 (GLOBE NEWSWIRE) -- Northwest Bancorporation, Inc. (OTCQB:NBCT) (the "Company"), the parent company of Inland Northwest Bank (the "Bank" or "INB"), announced today the redemption on December 31, 2013 of all remaining shares of its outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock") and Fixed Rate Cumulative Perpetual Preferred Stock, Series B ("Series B Preferred Stock") (collectively, the "Preferred Stock") that were issued under the Troubled Asset Relief Program ("TARP") Capital Purchase Program. A total of 10,500 shares of Series A Preferred Stock and 525 shares of Series B Preferred Stock were redeemed from third parties that had purchased the Preferred Stock from the United States Department of the Treasury earlier this year.
The Company paid 100% of the stated liquidation value, or $1,000 per share, plus $2.5 million of accrued dividends and interest, for a total repurchase price of $13.5 million. The Company funded the redemption with the proceeds of a previously announced private placement of common stock and subordinated notes, as well as from retained earnings.
Randall L. Fewel, President & CEO of both the Company and the Bank, said, "We are extremely pleased that we are able to announce the complete redemption of the Preferred Stock. Our goal was to complete the redemption before February 2014 when the dividend rate on the Series A Preferred Stock was scheduled to increase to 9%. We estimate the redemption will allow us to achieve after-tax savings of approximately $600 thousand per year." Mr. Fewel also stated, "We believe the regulatory approval of this redemption is further indication of the Company's financial strength. Our capital ratios following the redemption will continue to exceed the requirements of our regulators and the standards for well-capitalized banks."
As of September 30, 2013, the Bank's tier-1 leverage and total risk-based capital ratios were 11.3% and 13.9%, respectively. On a pro forma basis, after giving effect to the preferred stock redemption, the Bank's tier-1 leverage and total risk-based capital ratios are expected to be 10.9% and 13.5%, respectively.
About Northwest Bancorporation, Inc.
Northwest Bancorporation, Inc. is the parent company of Inland Northwest Bank, a state-chartered community bank which operates seven branches in Spokane County, Washington, and four branches in Kootenai County, Idaho. INB specializes in meeting the financial needs of individuals and small to medium-sized businesses, including professional corporations, by providing a full line of commercial, retail, 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 listed on the OTC Market Group's OTCQB marketplace at www.otcmarkets.com under the symbol NBCT.
Note Regarding 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. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements because of numerous possible risks and uncertainties. These include but are not limited to: 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 that may result in lower interest rate margins; 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.
CONTACT: Randall L. Fewel, President and CEO Holly Poquette, Chief Financial Officer 509.456.8888 firstname.lastname@example.orgSource:Northwest Bancorporation, Inc.