##### Table of Contents



UNITED
STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549





---





Form 10-QSB



(Mark One)



| ̈ |  | Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934
for the quarterly period ended
.                  
|- |  | ------------------------------------------------------------------------------------------------------------------------------------
| 
|x |  | Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934
for the transition period from 1/1/03 to 3/31/03.





Commission file number 0-24151



---



NORTHWEST BANCORPORATION, INC.

(Exact name of small business issuer as specified in its charter)





|Washington (State or other jurisdiction of incorporation or
organization) |  | 91-1574174 (I.R.S. Employer identification
No.)
|------------------------------------------------------------------------- |  | -----------------------------------------------



421
West Riverside, Spokane, WA 99201-0403

(Address of principal executive offices)



(509) 456-8888

(Issuers telephone number, including area code)





APPLICABLE ONLY TO
CORPORATE ISSUERS



The Registrant has a
single class of common stock, of which there are 1,808,204 shares issued and outstanding as of March 31, 2003.



Transitional Small Business Disclosure Format:



Yes  x         No ̈



---

##### Table of Contents



TABLE OF CONTENTS



|               |  |                                                                                             |  | Page
|-------------- |  | ------------------------------------------------------------------------------------------- |  | ----
|Part I         |  | Financial Information                                                                       |  |     
|              
|Item 1.        |  | Financial Statements                                                                        |  |     
|              
|               |  | Consolidated Statements of ConditionMarch 31, 2003 and December 31, 2002                   |  | 3   
|              
|               |  | Consolidated Statements of IncomeThree months, year-to-date, ended March 31, 2003 and 2002 |  | 4   
|              
|               |  | Consolidated Statements of Cash Flowyear-to-date ended March 31, 2003 and 2002             |  | 5   
|              
|               |  | Consolidated Statements of Stockholders Equity as of March 31, 2003 and 2002               |  | 6   
|              
|               |  | Notes to Consolidated Financial Statements                                                  |  | 7   
|              
|Item 2.        |  | Managements Discussion and Analysis or Plan of Operation                                   |  | 10  
|              
|Item 3.        |  | Controls and Procedures                                                                     |  | 10  
|              
|Part II        |  | Other Information                                                                           |  |     
|              
|Item 6.        |  | Exhibits and Reports on Form 8-K                                                            |  | 10  
|              
|Signatures     |  | 11                                                                                         
|              
|Certifications |  | 12                                                                                         





2



---

##### Table of Contents

PART I     FINANCIAL INFORMATION



Item 1.     Financial Statements



NORTHWEST BANCORPORATION, INC. AND SUBSIDIARY



CONSOLIDATED STATEMENTS OF CONDITION

March 31,
2003 and December 31, 2002

($ in thousands)



|                                                                                                                                                  |  | March 31, 2003 |         | December 31, 2002
|------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ------- | -----------------
|Assets                                                                                                                                            |  |                |         |                  
|Cash and due from banks                                                                                                                           |  | $              | 8,733   |                  
|Federal funds sold/FHLB interest bearing balances                                                                                                 |  |                | 14,342  |                  
|Securities held-to-maturity (Note 2)                                                                                                              |  |                | 2,099   |                  
|Securities available-for-sale (Note 2)                                                                                                            |  |                | 42,238  |                  
|Federal Home Loan Bank stock, at cost                                                                                                             |  |                | 602     |                  
|Loans, net of allowance for loan losses of $2,172 in 2003 and $2,026 in 2002 (Notes 3
& 4)                                                        |  |                | 135,182 |                  
|Loans held for sale                                                                                                                               |  |                | 2,895   |                  
|Accrued interest receivable                                                                                                                       |  |                | 1,032   |                  
|Premises and equipment, net                                                                                                                       |  |                | 3,462   |                  
|Foreclosed real estate                                                                                                                            |  |                | 1,953   |                  
|Other assets                                                                                                                                      |  |                | 1,977   |                  
|                                                                                                                                                  |  |                |         |                  
|TOTAL ASSETS                                                                                                                                      |  | $              | 214,515 |                  
|                                                                                                                                                  |  |                |         |                  
|                                                                                                                                                 
|Liabilities                                                                                                                                       |  |                |         |                  
|Noninterest bearing demand deposits                                                                                                               |  | $              | 33,328  |                  
|Money Market accounts                                                                                                                             |  |                | 51,002  |                  
|NOW accounts                                                                                                                                      |  |                | 14,191  |                  
|Savings accounts                                                                                                                                  |  |                | 5,182   |                  
|Time Certificates of Deposit, $100,000 and over                                                                                                   |  |                | 22,909  |                  
|Time Certificates of Deposit, under $100,000                                                                                                      |  |                | 44,717  |                  
|                                                                                                                                                  |  |                |         |                  
|TOTAL DEPOSITS                                                                                                                                    |  |                | 171,329 |                  
|Securities sold under agreement to repurchase                                                                                                     |  |                | 18,367  |                  
|Borrowed funds, Federal Home Loan Bank (Note 5)                                                                                                   |  |                | 5,892   |                  
|Dividend payable (Note 6)                                                                                                                         |  |                | 181     |                  
|Accrued interest payable and other liabilities                                                                                                    |  |                | 1,232   |                  
|                                                                                                                                                  |  |                |         |                  
|TOTAL OTHER LIABILITIES                                                                                                                           |  |                | 25,672  |                  
|                                                                                                                                                  |  |                |         |                  
|TOTAL DEPOSITS & LIABILITIES                                                                                                                      |  |                | 197,001 |                  
|                                                                                                                                                  |  |                |         |                  
|                                                                                                                                                 
|Stockholders Equity                                                                                                                              |  |                |         |                  
|Common stock, no par, 5,000,000 shares authorized; issued and outstanding 1,808,204 on
March 31, 2003 and 1,808,335 on December 31, 2002 (Note 6) |  |                | 14,324  |                  
|Retained earnings                                                                                                                                 |  |                | 2,465   |                  
|Accumulated other comprehensive income, net of tax of $374 for 2003 and $404 for
2002                                                             |  |                | 725     |                  
|                                                                                                                                                  |  |                |         |                  
|TOTAL STOCKHOLDERS EQUITY                                                                                                                        |  |                | 17,514  |                  
|                                                                                                                                                  |  |                |         |                  
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                        |  | $              | 214,515 |                  
|                                                                                                                                                  |  |                |         |                  



The
accompanying Notes are an integral part of these condensed financial statements.



3



---

##### Table of Contents



NORTHWEST BANCORPORATION, INC. AND SUBSIDIARY



CONSOLIDATED STATEMENTS OF INCOME

Three months, year-to-date, ended March 31, 2003 and
2002

($ in thousands, except number of shares and per share information)

|                                                                      |  | Quarter Ended March 31,
|--------------------------------------------------------------------- |  | -----------------------
|                                                                      |  | 2003                   
|Interest Income                                                       |  |                        
|Interest and fees on loans                                            |  | $                      
|Interest on securities                                                |  |                        
|Interest on federal funds sold                                        |  |                        
|                                                                      |  |                        
|TOTAL INTEREST INCOME                                                 |  |                        
|                                                                     
|Interest Expense                                                      |  |                        
|Interest on deposits                                                  |  |                        
|Interest on securities sold under agreement to repurchase             |  |                        
|Interest on borrowed funds                                            |  |                        
|                                                                      |  |                        
|TOTAL INTEREST EXPENSE                                                |  |                        
|                                                                     
|NET INTEREST INCOME                                                   |  |                        
|Provision for loan losses                                             |  |                        
|                                                                      |  |                        
|NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES                   |  |                        
|                                                                     
|Noninterest Income                                                    |  |                        
|Fees and service charges                                              |  |                        
|Net gain from sale of loans                                           |  |                        
|Other noninterest income                                              |  |                        
|                                                                      |  |                        
|TOTAL NONINTEREST INCOME                                              |  |                        
|                                                                     
|Noninterest Expense                                                   |  |                        
|Salaries and employee benefits                                        |  |                        
|Occupancy/FF&E expense                                                |  |                        
|Depreciation and amortization expense                                 |  |                        
|Other operating expense                                               |  |                        
|                                                                      |  |                        
|TOTAL NONINTEREST EXPENSE                                             |  |                        
|                                                                     
|INCOME BEFORE TAXES                                                   |  |                        
|Income tax expense                                                    |  |                        
|                                                                      |  |                        
|NET INCOME                                                            |  | $                      
|                                                                      |  |                        
|                                                                     
|Weighted average shares outstanding (Note 6)                          |  |                        
|Basic earnings per share                                              |  | $                      
|                                                                      |  |                        
|                                                                     
|Weighted average shares outstanding (Note 6)                          |  |                        
|Effect of dilutive securities                                         |  |                        
|                                                                     
|Weighted average shares outstanding, adjusted for dilutive securities |  |                        
|Earnings per share assuming full dilution                             |  | $                      
|                                                                      |  |                        



The
accompanying Notes are an integral part of these condensed financial statements.



4



---

##### Table of Contents



NORTHWEST BANCORPORATION, INC. AND SUBSIDIARY



CONSOLIDATED STATEMENTS OF CASH FLOW

Year-to-date ended March 31, 2003 and 2002

($ in thousands)

|                                                                              |  | Year-to-date |        
|----------------------------------------------------------------------------- |  | ------------ | -------
|                                                                              |  | 2003         |        
|Net income                                                                    |  | $            | 374    
|                                                                             
|Adjustments to reconcile net income to cash provided by operating
activities: |  |              |        
|Provision for loan losses                                                     |  |              | 225    
|Depreciation and amortization                                                 |  |              | 120    
|(Increase)/decrease in assets and liabilities:                                |  |              |        
|Accrued interest receivable                                                   |  |              | 31     
|Other assets                                                                  |  |              | 98     
|Accrued interest payable & other liabilities                                  |  |              | 83     
|                                                                              |  |              |        
|NET CASH PROVIDED BY OPERATING ACTIVITIES                                     |  |              | 931    
|                                                                              |  |              |        
|                                                                             
|Cash flows from investing activities:                                         |  |              |        
|Net (increase)/decrease in federal funds sold                                 |  |              | (13,748
|Net (increase)/decrease in investment securities                              |  |              | 9,815  
|Net (increase)/decrease in loans                                              |  |              | (383   
|Net (increase)/decrease in loans held for sale                                |  |              | (2,231 
|Purchase of premises and equipment net of gain or loss on asset disposal      |  |              | (16    
|Foreclosed real estate activity (net)                                         |  |              | (841   
|                                                                              |  |              |        
|NET CASH PROVIDED/(USED) BY INVESTING ACTIVITIES                              |  |              | (7,404 
|                                                                              |  |              |        
|                                                                             
|Cash flows from financing activities:                                         |  |              |        
|Net increase/(decrease) in deposits                                           |  |              | 5,272  
|Net increase/(decrease) in securities sold under agreement to repurchase      |  |              | 397    
|Net proceeds/(payments) from borrowed funds                                   |  |              | (695   
|Cash received from stock sales (net)                                          |  |              | (1     
|                                                                              |  |              |        
|NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES                              |  |              | 4,973  
|                                                                              |  |              |        
|                                                                             
|Net increase/(decrease) in cash and cash equivalents                          |  |              | (1,500 
|Cash and due from banks, beginning of year                                    |  | $            | 10,233 
|                                                                              |  |              |        
|CASH AND DUE FROM BANKS, END OF QUARTER                                       |  | $            | 8,733  
|                                                                              |  |              |        





The accompanying Notes are an integral part of these condensed financial statements.



5



---

##### Table of Contents



NORTHWEST BANCORPORATION, INC. AND SUBSIDIARY



CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY

In Actual Dollars



|                                                                  |  | Total |            |   | Common Stock |   |            | Retained Earnings |  |   | Accumulated Comprehensive Income |   |  | Comprehensive Income |        
|----------------------------------------------------------------- |  | ----- | ---------- | - | ------------ | - | ---------- | ----------------- |  | - | -------------------------------- | - |  | -------------------- | -------
|As of March 31, 2003                                              |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Balance, December 31, 2001                                        |  | $     | 15,578,705 |   |              | $ | 13,495,186 |                   |  | $ | 1,666,961                        |   |  | $                    | 416,558
|Net income 2002                                                   |  |       | 1,418,702  |   |              |   |            |                   |  |   | 1,418,702                        |   |  |                      |        
|Unrealized gains on available for sale securities                 |  |       | 367,067    |   |              |   |            |                   |  |   |                                  |   |  |                      | 367,067
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Comprehensive income                                              |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Proceeds from issuance of common stock                            |  |       | 27,802     |   |              |   | 27,802     |                   |  |   |                                  |   |  |                      |        
|Repurchase of common stock                                        |  |       | (9,161     | ) |              |   | (9,161     | )                 |  |   |                                  |   |  |                      |        
|Fractional shares, issued in cash                                 |  |       | (2,289     | ) |              |   |            |                   |  |   | (2,289                           | ) |  |                      |        
|Transfers                                                         |  |       | 0          |   |              |   | 811,462    |                   |  |   | (811,462                         | ) |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Balance December 31, 2002                                         |  |       | 17,380,826 |   |              |   | 14,325,289 |                   |  |   | 2,271,912                        |   |  |                      | 783,625
|Net income, 2003, year-to-date                                    |  |       | 373,752    |   |              |   |            |                   |  |   | 373,752                          |   |  |                      |        
|Unrealized losses on available for sale securities                |  |       | (58,535    | ) |              |   |            |                   |  |   |                                  |   |  |                      | (58,535
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Comprehensive income                                              |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Dividend declared & payable April 4, 2003                         |  |       | (180,820   | ) |              |   |            |                   |  |   | (180,820                         | ) |  |                      |        
|Repurchase of common stock                                        |  |       | (1,241     | ) |              |   | (1,241     | )                 |  |   |                                  |   |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Balance, end-of-quarter, March 31, 2003                           |  | $     | 17,513,982 |   |              | $ | 14,324,048 |                   |  | $ | 2,464,844                        |   |  | $                    | 725,090
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                 
|Disclosure of 2003 reclassification amount:                       |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Unrealized holding loss during period                             |  | $     | (26,052    | ) |              |   |            |                   |  |   |                                  |   |  |                      |        
|Less reclassification adjustment for gains reported in net income |  |       | 32,483     |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Net unrealized loss on securities                                 |  | $     | (58,535    | ) |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                 
|As of March 31, 2002                                             
|Balance, December 31, 2000                                        |  | $     | 14,335,792 |   |              | $ | 12,836,358 |                   |  | $ | 1,308,515                        |   |  | $                    | 190,919
|Net income 2001                                                   |  |       | 1,188,815  |   |              |   |            |                   |  |   | 1,188,815                        |   |  |                      |        
|Unrealized gains on available for sale securities                 |  |       | 225,639    |   |              |   |            |                   |  |   |                                  |   |  |                      | 225,639
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Comprehensive income                                              |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Proceeds from issuance of common stock                            |  |       | 52,360     |   |              |   | 52,360     |                   |  |   |                                  |   |  |                      |        
|Repurchase of common stock                                        |  |       | (221,532   | ) |              |   | (221,532   | )                 |  |   |                                  |   |  |                      |        
|Fractional shares, issued in cash                                 |  |       | (2,369     | ) |              |   |            |                   |  |   | (2,369                           | ) |  |                      |        
|Transfers                                                         |  |       | 0          |   |              |   | 828,000    |                   |  |   | (828,000                         | ) |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Balance December 31, 2001                                         |  |       | 15,578,705 |   |              |   | 13,495,186 |                   |  |   | 1,666,961                        |   |  |                      | 416,558
|Net income, 2002, year-to-date                                    |  |       | 328,241    |   |              |   |            |                   |  |   | 328,241                          |   |  |                      |        
|Unrealized gains on available for sale securities                 |  |       | 111,060    |   |              |   |            |                   |  |   |                                  |   |  |                      | 111,060
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Comprehensive income                                              |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Repurchase of common stock                                        |  |       | (8,600     | ) |              |   | (8,600     | )                 |  |   |                                  |   |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Balance, end-of-quarter, March 31, 2002                           |  | $     | 16,009,406 |   |              | $ | 13,486,586 |                   |  | $ | 1,995,202                        |   |  | $                    | 527,618
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                 
|Disclosure of 2002 reclassification amount:                       |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Unrealized holding gains during period                            |  | $     | 111,060    |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Less reclassification adjustment for gains reported in net income |  |       | 0          |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|Net unrealized gains on securities                                |  | $     | 111,060    |   |              |   |            |                   |  |   |                                  |   |  |                      |        
|                                                                  |  |       |            |   |              |   |            |                   |  |   |                                  |   |  |                      |        



6



---

##### Table of Contents

NORTHWEST BANCORPORATION, INC. AND SUBSIDIARY



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1.     Management Statement



In the opinion of the Company, the accompanying audited and unaudited Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the financial position of the
Company as of March 31, 2003 and December 31, 2002, as well as the results of operations and changes in financial position for the three-month, year-to-date periods ended March 31, 2003 and 2002. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed statements be read in conjunction with the
Independent Auditors Report and Financial Statements contained in the Companys most recent Annual Report on Form 10-KSB as of December 31, 2002.



Certain reclassifications of March 31, 2002 balances have been made to conform to the March 31, 2003 presentation; there was no impact on
net income or stockholders equity. Shares outstanding and calculation of earnings per share have been restated for the three-month, year-to-date period ending March 31, 2002 to reflect the effect of a five-percent stock dividend effective for
shareholders of record as of May 15, 2002.



NOTE 2.
    Securities



Most of
the securities are classified as available-for-sale and are stated at fair value, and unrealized holding gains and losses, net of related deferred taxes, are reported as a separate component of stockholders equity. Gains or losses on
available-for-sale securities sales are reported as part of non-interest income based on the net proceeds and the adjusted carrying amount of the securities sold, using the specific identification method. Realized net gains of $32,483 and $-0- are
included in the financial results for the three-month, year-to-date periods ending March 31, 2003 and 2002, respectively. Carrying amounts and fair values at March 31, 2003 and December 31, 2002 were as follows (in thousands):



|                                                                 |  | March 31, 2003 |        | December 31, 2002
|---------------------------------------------------------------- |  | -------------- | ------ | -----------------
|                                                                 |  | Amortized Cost |        | Fair Value       
|Securities available-for-sale:                                   |  |                |        |                  
|US Treasury securities                                           |  | $              | 7,157  |                  
|Obligations of federal government agencies                       |  |                | 23,525 |                  
|Mortgage backed securities                                       |  |                | 5,952  |                  
|Corporate Bonds                                                  |  |                | 4,505  |                  
|                                                                 |  |                |        |                  
|TOTAL                                                            |  | $              | 41,139 |                  
|                                                                 |  |                |        |                  
|                                                                
|Securities held-to-maturity:                                     |  |                |        |                  
|Obligations of states, municipalities and political subdivisions |  | $              | 2,099  |                  
|                                                                 |  |                |        |                  



7



---

##### Table of Contents

NORTHWEST BANCORPORATION, INC. AND SUBSIDIARY



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)



NOTE 3.     Loans



Loan detail by category as of March 31, 2003 and December 31,
2002 is as follows (in thousands):



|                          |  | March 31, 2003 |         |   | December 31, 2002 |  
|------------------------- |  | -------------- | ------- | - | ----------------- | -
|Commercial loans          |  | $              | 109,101 |   |                   | $
|Real estate loans         |  |                | 17,365  |   |                   |  
|Installment loans         |  |                | 4,307   |   |                   |  
|Consumer and other loans  |  |                | 6,884   |   |                   |  
|                          |  |                |         |   |                   |  
|TOTAL LOANS               |  | $              | 137,657 |   |                   | $
|                          |  |                |         |   |                   |  
|Allowance for loan losses |  |                | (2,172  | ) |                   |  
|Net deferred loan fees    |  |                | (303    | ) |                   |  
|                          |  |                |         |   |                   |  
|NET LOANS                 |  | $              | 135,182 |   |                   | $
|                          |  |                |         |   |                   |  



NOTE 4.
    Allowance for Loan Losses



The allowance for loan loss is maintained at levels considered adequate by management to provide for possible loan losses. The allowance is based on managements assessment of various factors affecting the loan portfolio,
including problem loans, business conditions and loss experience, and an overall evaluation of the quality of underlying collateral. Changes in the allowance for loan loss during the three-month, year-to-date periods ended March 31, 2003 and 2002
were as follows (in thousands):



|                             |  | Three Months Ended March 31,
|---------------------------- |  | ----------------------------
|                             |  | 2003                        
|Balance, beginning of period |  | $                           
|Provision for loan losses    |  |                             
|Loan Charge-offs             |  |                             
|Loan Recoveries              |  |                             
|                             |  |                             
|Balance, end of period       |  | $                           
|                             |  |                             



8



---

##### Table of Contents

NORTHWEST BANCORPORATION, INC. AND SUBSIDIARY



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)



NOTE 5.     Borrowed Funds



The Companys subsidiary, Inland
Northwest Bank, has unsecured operating lines of credit with Key Bank of Washington for $5,000,000, US Bank for $1,500,000 and Zions Bank for $1,500,000. The Bank also has a secured line of credit with the Federal Home Loan Bank of Seattle (FHLB)
for approximately $21,445,496 (10.0% of Bank assets.) There were no balances outstanding on any of the lines on March 31, 2003 or 2002. On December 31, 2002 there was $600,000 outstanding on the FHLB line. In addition to overnight funds, the Bank
has access to long-term funding through the FHLB in the approximate amount of $10,722,748 (5.0% of Bank assets) and has taken advances to fund Community Investment Program and other loans utilizing these funds. Long-term notes payable to the FHLB
were $5,891,815 on March 31, 2003 and $5,986,574 on December 31, 2002.



NOTE 6.     Common Stock



On March 19, 2002, the Board of Directors declared a five-percent stock dividend payable to shareholders of record as of May 15, 2002. Shares reported as outstanding as of March 31, 2002, as well as earnings per share
and weighted average and actual shares outstanding for the three-month, year-to-date period ending March 31, 2002, have been restated to reflect the stock dividend.



On February 18, 2003, the Board of Directors declared a ten-cent ($0.10) per share cash dividend payable on
April 4, 2003 to shareholders of record as of March 21, 2003.



NOTE 7.     Subsequent Event



On February 18, 2003, the Board of Directors declared a five-percent stock dividend payable on June 13, 2003 to shareholders of record as of May 15, 2003. No adjustment has been made to actual or weighted average shares
reported as outstanding or to earnings per share; prior year financial results will be adjusted on the quarterly report on Form 10-QSB filed for the period ending June 30, 2003.



9



---

##### Table of Contents

Item 2.     Managements Discussion and Analysis or Plan of Operation



The Registrant relied upon Alternative 2 in its registration statement filed on Form 10-SB; there is no information to provide in response
to Item 6(a)(3)(i) to Model B of Form 1-A.



Item 3.     Controls and Procedures



The officers signing this report: are responsible for maintaining internal controls; have designed such internal controls to ensure that material information relating to the Company and its
consolidated subsidiary is made known to them by others within those entities, particularly for the period(s) for and in which this report was being prepared; have evaluated the effectiveness of the Companys internal controls as of a date
within 90 days prior to this report; and, believe that, as of the date of this report and for the periods presented, existing internal controls are effective and adequate based on their evaluation. There have been no significant changes in internal
controls or in other factors that could significantly affect internal controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.





PART II     OTHER INFORMATION



Item 6.     Exhibits and Reports on Form 8-K



| | (a) |  | Exhibit 99.1
| | --- |  | ------------

Certification of Randall L. Fewel, President and Chief Executive Officer pursuant to 18 U.S.C. 1350



Exhibit 99.2

Certification of Christopher C. Jurey, Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. 1350



| | (b) |  | Reports on Form 8-K
| | --- |  | -------------------

Not applicable



10



---

##### Table of Contents



SIGNATURES



In
accordance with Section 12 of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



NORTHWEST BANCORPORATION, INC.By

/s/     RANDALL L. FEWELRandall L. Fewel, President and Chief Executive Officer




Date:
  May 12, 2003





In accordance with Section 12 of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.



NORTHWEST BANCORPORATION, INC.By

/s/     CHRISTOPHER C. JUREYChristopher C. Jurey, Executive Vice President and Chief Financial Officer




Date:
  May 12, 2003



11



---

##### Table of Contents



CERTIFICATIONS



I, Randall L. Fewel,
certify that:



|1. |  | I have reviewed this report on Form 10-QSB of Northwest Bancorporation, Inc.;
|-- |  | -----------------------------------------------------------------------------



|2. |  | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3. |  | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects, the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|4. |  | The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-14 and 15d-14) for the registrant and have:
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) |  | evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report
(the Evaluation Date);
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) |  | presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation
Date.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5. |  | The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee
of registrants board of directors (or persons performing the equivalent functions):
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrants ability to record, process,
summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and
| | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) |  | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls; and
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



|6. |  | The registrants other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





Date:   May 12, 2003





By

/s/     RANDALL L. FEWELRandall L. Fewel, President and Chief Executive Officer




12



---

##### Table of Contents



I, Christopher C. Jurey,
certify that:



|1. |  | I have reviewed this report on Form 10-QSB of Northwest Bancorporation, Inc.;
|-- |  | -----------------------------------------------------------------------------



|2. |  | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3. |  | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects, the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|4. |  | The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-14 and 15d-14) for the registrant and have:
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) |  | evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report
(the Evaluation Date);
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) |  | presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation
Date.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5. |  | The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee
of registrants board of directors (or persons performing the equivalent functions):
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrants ability to record, process,
summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and
| | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) |  | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls; and
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



|6. |  | The registrants other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





Date:   May 12, 2003





By

/s/     CHRISTOPHER C. JUREYChristopher C. Jurey, Executive Vice President and Chief Financial Officer




13