Jan 2 - Northwest Bancorp. Inc. (OTCQB: NBCT), the parent company of Inland Northwest Bank in Spokane, Wash., has announced the redemption on Dec. 31, 2013, of all remaining shares of its outstanding fixed-rate cumulative perpetual preferred stock, series A and fixed-rate cumulative perpetual preferred stock, series B that were issued under the Troubled Asset Relief Program 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 in 2013.
The company paid 100 percent 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 and CEO of 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 percent. We estimate the redemption will allow us to achieve after-tax savings of approximately $600,000 per year." 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 Sept. 30, 2013, the bank's Tier 1 leverage and total risk-based capital ratios were 11.3 percent and 13.9 percent, 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 percent and 13.5 percent, respectively.
About Northwest Bancorp. Inc.
Northwest Bancorp. Inc. is the parent company of Inland Northwest Bank, a state-chartered community bank that operates seven branches in Spokane County, Wash., 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 under the symbol "NBCT."