Northwest Bancorporation, Inc. Reports Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Reports Net Loan Charge-Offs for the Fourth Quarter and Year Ended December 31, 2017
January 30, 2018 at 03:31 am IST
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Northwest Bancorporation, Inc. reported earnings results for the fourth quarter and year ended December 31, 2017. Net income for the fourth quarter of 2017 was $1.15 million, compared to $0.96 million for the previous quarter and $1.41 million for the fourth quarter of 2016. Earnings per diluted share increased from $0.13 for the third quarter of 2017, to $0.15 for the fourth quarter of 2017, and are down $0.06 from the fourth quarter of last year. Total revenue was $10.6 million for the fourth quarter of 2017, representing an increase of $645,000 or 6.5%, from the previous quarter, and representing an increase of $3.1 million, or 41.7%, over the comparable quarter in 2016. Net interest income was $9.2 million for the quarter ended December 31, 2017, an increase of $613,000 or 7.1%, from the previous quarter and an increase of $3.0 million, or 48.5%, from the fourth quarter of 2016. Return on average assets for fourth quarter 2017 was 0.55%, compared to 0.49% in the previous quarter and 0.88% in the fourth quarter last year. Core ROA (non-GAAP), which excludes certain nonrecurring expenses, was 0.98% against 0.87% for the same periods in 2016. Return on average equity ("ROE") was 5.78% for fourth quarter 2017, compared to 5.22% in the previous quarter and 8.59% for the fourth quarter last year. Core ROE (non-GAAP) was 10.35% against 8.50% for the same periods in 2016.
For the year ended December 31, 2017, net income was $4.13 million, compared to $5.07 million for the in the year ended December 31, 2016, representing a decrease of $0.94 million, or 18.6%. Earnings per diluted share decreased 24.4% year over year, from $0.78 in 2016 to $0.59 in 2017. During 2017, book value per share of the Company's common stock increased $0.75, or 7.3%, and tangible book value per share (non-GAAP) increased $0.22 per share, or 2.4%. Total revenue was $35.4 million and $29.7 million for the years ended December 31, 2017 and 2016, respectively, which represents an increase of $5.7 million, or 19.1%. Total revenue is defined as net interest income plus noninterest income. Net interest income was $30.2 million for the year ended December 31, 2017, an increase of $5.3 million, or 21.2%, from the comparable period in 2016. For the year ended December 31, 2017 and 2016, ROA was 0.57% and 0.82%, respectively. Core ROA (non-GAAP), which excludes certain nonrecurring expenses, was 0.86% against 0.87% for the same periods in 2016. For the year ended December 31, 2017 and 2016, ROE was 5.74% and 8.00%, respectively. Core ROE (non-GAAP) was 8.59% against 8.47% for the same periods in 2016.
The Bank had net loan charge-offs of $33,000 for the three ended on December 31, 2017, compared to net loan charge-offs of $44,000 in 2016.
Northwest Bancshares, Inc. is a bank holding company of Northwest Bank (the Bank). Northwest Bank is a Pennsylvania-chartered savings bank. The Bank is a community-oriented financial institution offering personal and business banking solutions, investment management and trust services. The Banks principal lending activities are the origination of loans secured by first mortgages on owner-occupied, one-to-four-family residences, shorter term consumer loans, and commercial business and commercial real estate loans. Its principal sources of funds for lending activities include deposits, borrowings, repayments on loans, cash flows from investment and mortgage-backed securities and income provided from operations. It offers other consumer loans, such as direct and indirect automobile loans, sales finance loans, credit card loans, and others. The Bank has approximately 142 community-banking locations throughout its market area in Pennsylvania, western New York, eastern Ohio, and Indiana.
Northwest Bancorporation, Inc. Reports Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Reports Net Loan Charge-Offs for the Fourth Quarter and Year Ended December 31, 2017