Numerica saw loans increase last year

Spokane-based Numerica Credit Union says its earnings rose 4 percent last year compared with the year earlier, and that it also had increases in deposits, assets, and loans as of Dec. 31.

Numerica reported net income of $15.9 million last year compared with $15.3 million in 2011, an increase that Cindy Leaver, chief financial officer for the credit union, attributes largely to more checking and savings accounts with Numerica.

"We had a fairly large increase in the type of deposit accounts that tend to be a little lower cost," Leaver says.

Deposits, which exceeded $1 billion as of the end of last year and were up from $974.7 million a year earlier, grew as expected for the credit union, she says. Deposits into checking accounts grew by $30 million, while savings accounts grew by $24 million. In contrast, Leaver says, certificates of deposit shrunk by $35 million.

"From a profitability and earnings standpoint, that helps by changing that mix (of accounts)," she says.

The increase in net income also is tied to a decrease in loan delinquencies and charge-offs, Leaver says, adding Numerica didn't have to set aside as much in loan loss reserves last year.

Loans grew to $949.3 million as of Dec. 31, from $786.2 million at the end of 2011.

Leaver says that 20 percent increase was due to most of its areas of lending seeing positive growth last year, specifically collateralized lending programs such as those for automobiles and boats, she says.

Between loans distributed through its branches and through dealerships with which it partners, Numerica had an $85 million net growth in collateralized lending at the end of last year compared with the year prior.

"We more than exceeded our expectations in that regard," Leaver says about the total increase in loans.

She credits strong loan growth with driving an upswing in total assets, which grew by $73 million, or 6 percent, to $1.2 billion.

Numerica projects its net income will continue to rise in 2013, but Leaver says it doesn't anticipate the same growth it had this year.

"Income isn't going to be bad, but we aren't going to see as high of a return on investment in 2013," she says, adding that the credit union's margin, which is the difference between interest income and interest expense, has remained low.

Leaver says Numerica plans to make a number of moves to bolster itself in coming years, including expanding parts of its lending program.

Leaver says it projects about a 9 percent growth in loans by the end of 2013 and is eyeing developing a small business lending program, in addition to expanding its commercial-and-industrial lending, which is used predominantly for equipment loans.

Numerica projects deposits will grow by 5 percent by the end of this year, about the same growth rate it had in 2012.

In addition to those changes, the credit union last year upgraded all 17 of its ATMs, which it had owned, to newer models that it's leasing and that are similar to those used by Chase Bank, she says.

"It makes more sense to rent those, so if the technology does change, we can change out more quickly," Leaver says.

—Jessica Valencia

WTB reports jump in earnings for 2012

Washington Trust Bank, of Spokane, has reported 2012 net income of $31.4 million, nearly double the $16.2 million in earnings the company reported the previous year and well ahead of the $9.1 million and $3 million in net income it reported in 2010 and 2009, respectively, according to a Federal Deposit Insurance Corp. filing by the bank.

Attempts to reach Jack Heath, Washington Trust Bank's president and chief operating officer, were unsuccessful.

Enhancing the bank's performance was a dramatic drop in its net loan charge-offs, to $15.8 million in 2012 from $46.3 million the previous year.

Coinciding with its improved earnings was a jump in return on equity, to 7.3 percent from 3.8 percent, and a bump in return on assets, to 0.7 percent from 0.4 percent.

Washington Trust's total assets grew to $4.5 billion as of Dec. 31, up from $4.2 billion a year earlier. Its total deposits increased to $3.8 billion on Dec. 31, from $3.5 billion a year earlier.

Last fall, an annual market share report released by the FDIC showed that Washington Trust easily retained its place at the top of the list.

At that time, Washington Trust had $1.85 billion in total local deposits, equating to a 27.5 percent market share.

That was well ahead of U.S. Bank, which came in second with a 12.1 percent market share.

Founded in 1902, Washington Trust Bank has 20 branches in the Spokane-Coeur d'Alene area and 42 overall, including operations in Idaho, Oregon, and Utah.

—Linn Parish

State Bank Northwest reports higher earnings

Spokane Valley-based State Bank Northwest posted net income of $515,000 for 2012, up from $160,000 in the year prior, documents it filed with the Federal Deposit Insurance Corp. show.

State Bank Northwest's total assets increased to $102.2 million at the end of last year from $96.7 million at the end of 2011, up 5.7 percent. Total deposits grew to $90.8 million from $86 million.

However, the bank experienced only modest loan growth last year. Its net loans as of Dec. 31 were $71.6 million, compared with $70.2 million in loans for the prior year.

"We exceeded our expectations in all areas except for loan growth," says Greg Deckard, the bank's chairman, president, and CEO. "I think that's a combination of the continued soft economy, tepid loan demand, and the extremely low interest rate."

He says the bank gained new clients, and he adds that many of its customers who are small business owners were waiting for more certainty in the economy before starting projects last year.

"We're starting to see business pick up, and those owners deciding to move forward with projects," Deckard says.

He adds, "We expect in excess of 20 percent loan growth in 2013."

Deckard says the bank last year also had a record high capital ratio, which is the amount of a bank's equity in relation to the asset mix of the bank.

"We're really poised for the growth," Deckard adds. "Like a lot of community banks, we're sitting on a lot of excess liquidity."

Overall, Deckard says the bank's 2012 performance improved significantly amid what he calls industry headwinds, including the economy, strict bank regulations, and historically low net interest margins.

"In spite of those challenges, we ended up having a pretty decent year," he says.

—Treva Lind

Wheatland Bank posts drop in net for last year

Spokane-based Wheatland Bank has reported that its earnings in 2012 fell for the second consecutive year, while its total assets and deposits rose.

Susan Horton, Wheatland Bank's president, CEO, and chairwoman, couldn't be reached for comment. However, in information filed with the Federal Deposit and Insurance Corp., the bank reported net income of $916,000 for last year, down 11 percent from a little over $1 million the prior year. The bank's 2011 net income was down 7 percent from its earnings in 2010.

The bank's loans totaled $148.5 million at the end of 2012, down 7 percent from a year earlier.

The bank reported a loan-loss allowance of $2.2 million for 2012, up from $1.5 million a year earlier. Its charge-offs in 2012, though, totaled just $462,000, dropping sharply from $1.5 million a year earlier.

Total assets for the 13-branch bank rose to $307.9 million at the end of 2012, up 12 percent from a year earlier, and the bank's total equity capital increased to $27.6 million, up 3.3 percent from a year earlier. Also, deposits increased to $273.5 million at the end of 2012, up 15 percent.

Return on assets, which is a measure of earnings derived from assets the bank controls, fell slightly to 0.31 percent from 0.38 percent a year earlier. Return on equity, which is a measure of profit generated with the money invested by shareholders, also dipped in 2012, to 3.4 percent, from 3.9 percent a year earlier.

—Mike McLean

Global's earnings drop; assets, deposits grow

Spokane-based Global Credit Union's net income dropped to $268,000 last year from $3.8 million in 2011, according to information it has filed with the National Credit Union Administration. Meanwhile, its total assets rose by 3 percent in 2012 to $359.8 million, the data show.

Jack Fallis, president of Global Credit Union, couldn't be reached for comment.

Total deposits for the credit union as of Dec. 31 were up 4 percent, to $320.5 million from $307.7 million a year earlier.

Loans as of Dec. 31 fell by almost 9 percent compared with a year earlier, to $191.2 million from $209.5 million.

Total loan loss charge-offs totaled more than $2 million last year, compared with about $1.6 million in 2011 and $5.6 million in 2010.

Global's total assets increased last year by $10.5 million, or 3 percent, to $359.9 million from $349.4 million in 2011.

Total membership declined to 48,050 as of Dec. 31 from 48,730 members a year earlier. That latter number also reflected a decline from the end of 2010, when the credit union had 49,530 members.

Global is in the midst of a rebranding, and Fallis told the Journal for an article published last November that he would like to see the credit union double its membership over the span of five to seven years as a result of the changes being made at the credit union.

Headquartered at 1520 W. Third in downtown Spokane, Global Credit Union serves residents in Washington and North Idaho, in addition to members of the U.S. Armed Forces and retired military personnel. It has 10 branches and two lending offices in the Inland Northwest, including a branch at Fairchild Air Force Base. It also has three additional branches on U.S. military bases in Italy.

—Jessica Valencia