Local News - Local News - December 20, 2012
Northwest Bancorporation Inc., the Spokane-based parent of Inland Northwest Bank, announced this afternoon that it expects to raise about $3.9 million through a private sale of common stock.
The company said it entered into an agreement Dec. 28 with six accredited investors, including Spokane developer Harlan D. Douglass, who will be issued the company's stock.
Northwest Bancorporation expects to raise additional funds by issuing preferred stock to those involved in the offering.
The stock sale is contingent upon regulatory approval and amendment of the company's articles of incorporation. Once the sale is complete, Douglass, who is a member of the company's board of directors, will hold as much as 35.4 percent of the voting stock in Northwest Bancorporation. He currently owns a 14 percent share in the company.
In a filing with the U.S. Securities and Exchange Commission, Northwest Bancorp said it wants to use the proceeds to bid on the company's preferred stock currently held by the U.S. Department of Treasury as part of the TARP Capital Purchase Program. That stock is due to be auctioned off in early 2013.
The company also said it will use money raised to repay accrued interest on the company's outstanding trust preferred securities and for other purposes.
Inland Northwest Bank currently operates 11 bank branches in the Inland Northwest. For third quarter 2011, the company reported net income applicable to common shareholders of $229,000, or 7 cents a diluted share, up from a net loss of $659,000, or 21 cents a share, in the year-earlier period.