|  ̈ | 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 7/1/05 to                9/30/05. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Washington(State                or other jurisdiction ofincorporation                or organization) |   | 91-1574174(I.R.S.                Employeridentification                No.) |
|-------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|

----

Table          of Contents

Table      of Contents

|                   |                                                                                                                                                           |   |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                   |                                                                                                                                                           | Page   |
| Part                I  | Financial                Information                                                                                                                           |   |
|                   |                                                                                                                                                           |   |
| Item                1. | Financial                Statements                                                                                                                            | 3      |
|                   |                                                                                                                                                           |   |
|                   | Consolidated                Statements of Condition - September 30,                2005 and December 31, 2004                                                  | 3      |
|                   |                                                                                                                                                           |   |
|                   | Consolidated                Statements of Income - Three-months and                nine-months, year-to-date, ended September 30, 2005 and                2004 | 4      |
|                   |                                                                                                                                                           |   |
|                   | Consolidated                Statements of Cash Flow - Nine-months,                year-to-date, ended September 30, 2005 and 2004                              | 5      |
|                   |                                                                                                                                                           |   |
|                   | Consolidated                Statements of Stockholders' Equity as of                September 30, 2005 and 2004                                                | 6      |
|                   |                                                                                                                                                           |   |
|                   | Notes                to Consolidated Financial                Statements                                                                                       | 8      |
|                   |                                                                                                                                                           |   |
| Item                2. | Management's                Discussion and Analysis or Plan of                Operation                                                                        | 11     |
|                   |                                                                                                                                                           |   |
| Item                3. | Controls                and Procedures                                                                                                                         | 11     |
|                   |                                                                                                                                                           |   |
| Part                II | Other                Information                                                                                                                               |   |
|                   |                                                                                                                                                           |   |
| Item                6. | Exhibits                and Reports on Form 8-K                                                                                                                | 12     |
|                   |                                                                                                                                                           |   |
| Signatures             |                                                                                                                                                           | 13     |
|                   |                                                                                                                                                           |   |
| Certifications         |                                                                                                                                                           | 14     |

----

Table          of Contents

| Part                  I Financial Information                  |   |   |
|----------------------------------------------------------------|--------|--------|
|                                                           |   |   |
| Item                  1. Financial Statements                  |   |   |
|                                                           |   |   |
| NORTHWEST                  BANCORPORATION, INC. AND SUBSIDIARY |
| CONSOLIDATED                  STATEMENTS OF CONDITION          |
| Unaudited                                                      |
| September                  30, 2005                            |
| (Dollars                  in thousands)                        |

|                                                                                                                                                                                                                      |   | September-30 |    | December-31 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|-------------|--------|
|                                                                                                                                                                                                                      |   | 2005         |    | 2004        |   |
| Assets                                                                                                                                                                                                                    |   |         |    |        |   |
| Cash                  and due from banks                                                                                                                                                                                  |   | $            | 9,041   |        | $      | 7,736 |   |
| Federal                  funds sold/FHLB interest bearing balances                                                                                                                                                        |   |         | 209     |        |   | 3,503 |   |
| Securities                  held-to-maturity (Note 2; fair value, $3,549 and $2,738,                  respectively)                                                                                                       |   |         | 3,546   |        |   | 2,706 |   |
| Securities                  available-for-sale (Note 2; cost, $33,719 and $38,329,                  respectively)                                                                                                         |   |         | 33,463  |        |   | 38,261 |   |
| Federal                  Home Loan Bank stock, at cost                                                                                                                                                                    |   |         | 646     |        |   | 643 |   |
| Loans,                  net of allowance for loan losses of $2,273 in 2005 and $1,944 in                  2004                  (Notes 3 & 4)                                                                         |   |         | 183,479 |        |   | 157,438 |   |
| Loans                  held for sale                                                                                                                                                                                      |   |         | 1,431   |        |   | 623 |   |
| Accrued                  interest receivable                                                                                                                                                                              |   |         | 1,005   |        |   | 831 |   |
| Premises                  and equipment, net                                                                                                                                                                              |   |         | 5,380   |        |   | 4,358 |   |
| Foreclosed                  real estate                                                                                                                                                                                   |   |         | 535     |        |   | 723 |   |
| Bank                  owned life insurance                                                                                                                                                                                |   |         | 3,284   |        |   | 3,193 |   |
| Other                  assets                                                                                                                                                                                             |   |         | 1,516   |        |   | 457 |   |
| TOTAL                  ASSETS                                                                                                                                                                                             |   | $            | 243,535 |        | $      | 220,472 |   |
|                                                                                                                                                                                                                      |   |         |    |        |   |   |   |
| Liabilities                                                                                                                                                                                                               |   |         |    |        |   |   |   |
| Noninterest                  bearing demand deposits                                                                                                                                                                      |   | $            | 50,016  |        | $      | 38,872 |   |
| Money                  Market accounts                                                                                                                                                                                    |   |         | 44,706  |        |   | 53,605 |   |
| NOW                  accounts                                                                                                                                                                                             |   |         | 16,052  |        |   | 14,233 |   |
| Savings                  accounts                                                                                                                                                                                         |   |         | 8,464   |        |   | 7,262 |   |
| Time                  Certificates of Deposit, $100,000 and over                                                                                                                                                          |   |         | 26,365  |        |   | 23,748 |   |
| Time                  Certificates of Deposit, under $100,000                                                                                                                                                             |   |         | 44,985  |        |   | 39,317 |   |
| TOTAL                  DEPOSITS                                                                                                                                                                                           |   |         | 190,588 |        |   | 177,037 |   |
|                                                                                                                                                                                                                      |   |         |    |        |   |   |   |
| Securities                  sold under agreement to repurchase                                                                                                                                                            |   |         | 16,924  |        |   | 12,996 |   |
| Borrowed                  funds (Note 5)                                                                                                                                                                                  |   |         | 7,611   |        |   | 5,214 |   |
| Borrowed                  funds, other (Note 5)                                                                                                                                                                           |   |         | 599     |        |   | 3,981 |   |
| Junior                  subordinated debentures issued in connection with trust preferred                  securities (Note 6)                                                                                            |   |         | 5,155   |        |   | 0 |   |
| Accrued                  interest payable and other liabilities                                                                                                                                                           |   |         | 1,452   |        |   | 1,283 |   |
| TOTAL                  OTHER LIABILITIES                                                                                                                                                                                  |   |         | 31,741  |        |   | 23,474 |   |
|                                                                                                                                                                                                                      |   |         |    |        |   |   |   |
| TOTAL                  DEPOSITS & LIABILITIES                                                                                                                                                                         |   |         | 222,329 |        |   | 200,511 |   |
|                                                                                                                                                                                                                      |   |         |    |        |   |   |   |
| Stockholders'                  Equity                                                                                                                                                                                     |   |         |    |        |   |   |   |
| Common                  stock, no par, 5,000,000 shares authorized; issued and outstanding                  2,108,864 on September 30, 2005 and 2,105,146 on December 31, 2004                  (Note                  7) |   |         | 16,943  |        |   | 18,637 |   |
| Retained                  earnings                                                                                                                                                                                        |   |         | 2,738   |        |   | 3,063 |   |
| Accumulated                  other comprehensive income, net of tax of ($87) for 2005 and ($23)                  for                  2004                                                                                |   |         | (169    | )           |   | (45 | ) |
| TOTAL                  STOCKHOLDERS' EQUITY                                                                                                                                                                               |   |         | 21,206  |        |   | 19,961 |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                               |   | $            | 243,535 |        | $      | 220,472 |   |

----

Table          of Contents

| NORTHWEST                  BANCORPORATION, INC. AND SUBSIDIARY                                                                   |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED                  STATEMENTS OF INCOME                                                                               |   |
| Unaudited                                                                                                                        |   |
| Three                  months and nine months, year-to-date, ended September 30, 2005                  and                  2004 |   |
| (Dollars                  in thousands, except number of shares and per share                  information)                      |   |

|                                                                       |   | Three-months                  endedSeptember                  30 |   | Nine-months,                  year-to-date, endedSeptember                  30 |   |
|----------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                                                                       |   | 2005                                                             |   | 2004                                                                           |   | 2005 |   | 2004 |   |
| Interest                  Income                                           |   |                                                             |   |                                                                           |   |   |   |   |   |
| Interest                  and fees on loans                                |   | $                                                                | 3,195  |                                                                           | $      | 2,431 |   | $ | 8,808 |   | $ | 7,179 |   |
| Interest                  on securities                                    |   |                                                             | 362    |                                                                           |   | 471 |   |   | 1,088 |   |   | 1,246 |   |
| Interest                  on federal funds sold                            |   |                                                             | 93     |                                                                           |   | 26 |   |   | 136 |   |   | 74 |   |
| TOTAL                  INTEREST INCOME                                     |   |                                                             | 3,650  |                                                                           |   | 2,928 |   |   | 10,032 |   |   | 8,499 |   |
|                                                                       |   |                                                             |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Interest                  Expense                                          |   |                                                             |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Interest                  on deposits                                      |   |                                                             | 917    |                                                                           |   | 605 |   |   | 2,430 |   |   | 1,787 |   |
| Interest                  on securities sold under agreement to repurchase |   |                                                             | 109    |                                                                           |   | 36 |   |   | 249 |   |   | 79 |   |
| Interest                  on borrowed funds                                |   |                                                             | 176    |                                                                           |   | 80 |   |   | 373 |   |   | 251 |   |
| TOTAL                  INTEREST EXPENSE                                    |   |                                                             | 1,202  |                                                                           |   | 721 |   |   | 3,052 |   |   | 2,117 |   |
|                                                                       |   |                                                             |   |                                                                           |   |   |   |   |   |   |   |   |   |
| NET                  INTEREST INCOME                                       |   |                                                             | 2,448  |                                                                           |   | 2,207 |   |   | 6,980 |   |   | 6,382 |   |
| Provision                  for loan losses                                 |   |                                                             | 90     |                                                                           |   | 40 |   |   | 234 |   |   | 160 |   |
| NET                  INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES       |   |                                                             | 2,358  |                                                                           |   | 2,167 |   |   | 6,746 |   |   | 6,222 |   |
|                                                                       |   |                                                             |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Noninterest                  Income                                        |   |                                                             |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Fees                  and service charges                                  |   |                                                             | 246    |                                                                           |   | 276 |   |   | 721 |   |   | 776 |   |
| Net                  gain from sale of loans                               |   |                                                             | 120    |                                                                           |   | 137 |   |   | 314 |   |   | 363 |   |
| Gain                  on sale of securities                                |   |                                                             | 0      |                                                                           |   | 0 |   |   | 0 |   |   | 37 |   |
| Other                  noninterest income                                  |   |                                                             | 157    |                                                                           |   | 143 |   |   | 469 |   |   | 348 |   |
| TOTAL                  NONINTEREST INCOME                                  |   |                                                             | 523    |                                                                           |   | 556 |   |   | 1,504 |   |   | 1,524 |   |
|                                                                       |   |                                                             |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Noninterest                  Expense                                       |   |                                                             |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Salaries                  and employee benefits                            |   |                                                             | 1,113  |                                                                           |   | 1,104 |   |   | 3,372 |   |   | 3,346 |   |
| Occupancy,                  furniture, fixture & equipment expense     |   |                                                             | 191    |                                                                           |   | 200 |   |   | 593 |   |   | 581 |   |
| Depreciation                  and amortization expense                     |   |                                                             | 118    |                                                                           |   | 110 |   |   | 342 |   |   | 333 |   |
| Other                  operating expense                                   |   |                                                             | 514    |                                                                           |   | 460 |   |   | 1,617 |   |   | 1,354 |   |
| TOTAL                  NONINTEREST EXPENSE                                 |   |                                                             | 1,936  |                                                                           |   | 1,874 |   |   | 5,924 |   |   | 5,614 |   |
|                                                                       |   |                                                             |   |                                                                           |   |   |   |   |   |   |   |   |   |
| INCOME                  BEFORE TAXES                                       |   |                                                             | 945    |                                                                           |   | 849 |   |   | 2,326 |   |   | 2,132 |   |
| Income                  tax expense                                        |   |                                                             | 309    |                                                                           |   | 292 |   |   | 733 |   |   | 732 |   |
| NET                  INCOME                                                |   | $                                                                | 636    |                                                                           | $      | 557 |   | $ | 1,593 |   | $ | 1,400 |   |

|                                                                                                    |   | Three-months                  endedSeptember                  30 |      | Nine-months,                  year-to-date, endedSeptember                  30 |   |
|---------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|-----------|--------------------------------------------------------------------------------|--------|
|                                                                                                    |   | 2005                                                             |      | 2004                                                                           |   | 2005 |   | 2004 |   |
|                                                                                                    |   |                                                             |      |                                                                           |   |   |   |   |   |
| Weighted                  average shares outstanding (Note 7)                                           |   |                                                             | 2,108,864 |                                                                           |   | 2,098,013 |   |   | 2,107,264 |   |   | 2,095,837 |   |
| Basic                  earnings per share                                                               |   | $                                                                | 0.30      |                                                                           | $      | 0.27 |   | $ | 0.76 |   | $ | 0.67 |   |
|                                                                                                    |   |                                                             |      |                                                                           |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding (Note 7)                                           |   |                                                             | 2,108,864 |                                                                           |   | 2,098,013 |   |   | 2,107,264 |   |   | 2,095,837 |   |
| Effect                  of dilutive securities                                                          |   |                                                             | 46,415    |                                                                           |   | 30,042 |   |   | 44,101 |   |   | 32,151 |   |
| Weighted                  average shares outstanding, adjusted for dilutive                  securities |   |                                                             | 2,155,279 |                                                                           |   | 2,128,055 |   |   | 2,151,365 |   |   | 2,127,988 |   |
| Earnings                  per share assuming full dilution                                              |   | $                                                                | 0.30      |                                                                           | $      | 0.26 |   | $ | 0.74 |   | $ | 0.66 |   |

----

Table          of Contents

| NORTHWEST                BANCORPORATION, INC. AND SUBSIDIARY                                                |   |
|-------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED                STATEMENTS OF CASH FLOW                                                         |   |
| Unaudited                                                                                                   |   |
| Nine                months, year-to-date, ended September 30, 2005 and 2004                                 |   |
| (Dollars                in thousands)                                                                       |   |
|                                                                                                        |   | Nine-months,                year-to-date,endedSeptember                30 |   |
|                                                                                                        |   | 2005 |   | 2004 |   |
|                                                                                                        |   |   |   |   |   |
| Net                income                                                                                   |   | $ | 1,593 |   | $ | 1,400 |   |
| Adjustments                to reconcile net income to cash provided by operating                activities: |   |   |   |   |   |   |   |
| Provision                for loan losses                                                                    |   |   | 234 |   |   | 160 |   |
| Depreciation                and amortization                                                                |   |   | 342 |   |   | 333 |   |
| Change                in assets and liabilities:                                                            |   |   |   |   |   |   |   |
| Accrued                interest receivable                                                                  |   |   | (174 | ) |   | (87 | ) |
| Net                increase in loans held for sale                                                          |   |   | (808 | ) |   | (970 | ) |
| Net                increase in bank owned life insurance                                                    |   |   | (91 | ) |   | (73 | ) |
| Other                assets                                                                                 |   |   | (997 | ) |   | 35 |   |
| Accrued                interest payable & other liabilities                                             |   |   | 169 |   |   | 457 |   |
| NET                CASH PROVIDED/(USED) BY OPERATING ACTIVITIES                                             |   |   | 268 |   |   | 1,255 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Cash                flows from investing activities:                                                        |   |   |   |   |   |   |   |
| Net                increase in federal funds sold/FHLB interest bearing                balances             |   |   | 3,294 |   |   | 8,752 |   |
| Net                (increase)/decrease in investment securities                                             |   |   | 3,770 |   |   | (10,856 | ) |
| Net                (increase)/decrease in loans                                                             |   |   | (26,275 | ) |   | (4,529 | ) |
| Purchase                of premises and equipment net of gain or loss on asset                disposal      |   |   | (1,365 | ) |   | (849 | ) |
| Foreclosed                real estate activity (net)                                                        |   |   | 188 |   |   | 596 |   |
| NET                CASH USED BY INVESTING ACTIVITIES                                                        |   |   | (20,388 | ) |   | (6,886 | ) |
|                                                                                                        |   |   |   |   |   |  |   |
| Cash                flows from financing activities:                                                        |   |   |   |   |   |  |   |
| Net                increase in deposits                                                                     |   |   | 13,551 |   |   | 8,758 |   |
| Net                increase/(decrease) in securities sold under agreement to                repurchase      |   |   | 3,928 |   |   | 1,815 |   |
| Proceeds                from issuance of junior subordinated debentures                                     |   |   | 5,155 |   |   | 0 |   |
| Repayment                of borrowed funds                                                                  |   |   | (985 | ) |   | (2,302 | ) |
| Cash                received from stock sales                                                               |   |   | 61 |   |   | 60 |   |
| Cash                dividend paid                                                                           |   |   | (285 | ) |   | (232 | ) |
| NET                CASH PROVIDED BY FINANCING ACTIVITIES                                                    |   |   | 21,425 |   |   | 8,099 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Net                increase in cash and cash equivalents:                                                   |   |   | 1,305 |   |   | 2,468 |   |
| Cash                and due from banks, beginning of year                                                   |   |   | 7,736 |   |   | 7,466 |   |
| CASH                AND DUE FROM BANKS, END OF QUARTER                                                      |   | $ | 9,041 |   | $ | 9,934 |   |

----

Table          of Contents

| NORTHWEST                  BANCORPORATION, INC. AND SUBSIDIARY                    |
|-----------------------------------------------------------------------------------|
| CONSOLIDATED                  STATEMENTS OF STOCKHOLDERS'                  EQUITY |
| Unaudited                                                                         |
| (Dollars                  in thousands)                                           |
| As                  of September 30, 2005                                         |

|                                                                      |   |   |   |   |   |     |   | Accumulated   |   |          |   |
|---------------------------------------------------------------------------|--------|--------|--------|--------|--------|----------|--------|---------------|--------|---------------|--------|
|                                                                      |   |   |   | Common |   | Retained |   | Comprehensive |   | Comprehensive |   |
|                                                                      |   | Total  |   | Stock  |   | Earnings |   | Income        |   | Income        |   |
|                                                                      |   |   |   |   |   |     |   |          |   |          |   |   |   |   |   |   |
| Balance,                  December 31, 2003                               |   | $      | 18,504 |   | $      | 15,332   |   | $             | 2,833  |          | $      | 339 |   |   |   |   |
| Net                  income 2004                                          |   |   | 1,964  |   |   |     |   |          | 1,964  |          |   |   |   | $ | 1,964 |   |
| Unrealized                  losses on available for sale securities       |   |   | (384   | )      |   |     |   |          |   |          |   | (384 | ) |   | (384 | ) |
| Comprehensive                  income                                     |   |   |   |   |   |     |   |          |   |          |   |   |   |   | 1,580 |   |
| Proceeds                  from issuance of common stock                   |   |   | 109    |   |   | 109      |   |          |   |          |   |   |   |   |   |   |
| Cash                  dividends paid                                      |   |   | (232   | )      |   |     |   |          | (232   | )             |   |   |   |   |   |   |
| Transfers                                                                 |   |   | 0      |   |   | 1,502    |   |          | (1,502 | )             |   |    |   |   |   |   |
| Balance                  December 31, 2004                                |   |   | 19,961 |   |   | 16,943   |   |          | 3,063  |          |   | (45 | ) |   |   |   |
| Net                  income, 2005, year-to-date                           |   |   | 1,593  |   |   |     |   |          | 1,593  |          |   |   |   |   | 1,593 |   |
| Unrealized                  losses on available for sale securities       |   |   | (124   | )      |   |     |   |          |   |          |   | (124 | ) |   | (124 | ) |
| Comprehensive                  income                                     |   |   |   |   |   |     |   |          |   |          |   |   |   | $ | 1,469 |   |
| Proceeds                  from issuance of common stock                   |   |   | 61     |   |   | 61       |   |          |   |          |   |   |   |   |   |   |
| Cash                  dividends paid                                      |   |   | (285   | )      |   |     |   |          | (285   | )             |   |   |   |   |   |   |
| Transfers                                                                 |   |   | 0      |   |   | 1,633    |   |          | (1,633 | )             |   |      |   |   |   |   |
| Balance,                  end-of-quarter, September 30, 2005              |   | $      | 21,206 |   | $      | 18,637   |   | $             | 2,738  |          |   | ($169 | ) |   |   |   |
|                                                                      |   |   |   |   |   |     |   |          |   |          |   |   |   |   |   |   |
| Disclosure                  of 2005 reclassification amount:              |   |   |   |   |   |     |   |          |   |          |   |   |   |   |   |   |
| Unrealized                  holding loss on available for sale securities |   |   | ($188  | )      |   |     |   |          |   |          |   |   |   |   |   |   |
| Reclassification                  adjustment for gains realized in income |   |   | 0      |   |   |     |   |          |   |          |   |   |   |   |   |   |
| Net                  unrealized loss                                      |   |   | (188   | )      |   |     |   |          |   |          |   |   |   |   |   |   |
| Tax                  effect                                               |   |   | (64    | )      |   |     |   |          |   |          |   |   |   |   |   |   |
| Net                  of tax amount                                        |   |   | ($124  | )      |   |     |   |          |   |          |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |     |   |          |   |          |   |   |   |   |   |   |

----

Table          of Contents

| NORTHWEST                  BANCORPORATION, INC. AND SUBSIDIARY   |
|------------------------------------------------------------------|
| CONSOLIDATED                  STATEMENTS OF STOCKHOLDERS' EQUITY |
| Unaudited                                                        |
| (Dollars                  in thousands)                          |
| As                  of September 30, 2004                        |

|                                                                      |   |   |   |   |   |     |   | Accumulated   |   |          |   |
|---------------------------------------------------------------------------|--------|--------|--------|--------|--------|----------|--------|---------------|--------|---------------|--------|
|                                                                      |   |   |   | Common |   | Retained |   | Comprehensive |   | Comprehensive |   |
|                                                                      |   | Total  |   | Stock  |   | Earnings |   | Income        |   | Income        |   |
|                                                                      |   |   |   |   |   |     |   |          |   |          |   |   |   |   |   |   |
| Balance,                  December 31, 2002                               |   | $      | 17,382 |   | $      | 14,325   |   | $             | 2,273  |          | $      | 784 |   |   |   |   |
| Net                  income 2003                                          |   |   | 1,746  |   |   |     |   |          | 1,746  |          |   |   |   | $ | 1,746 |   |
| Unrealized                  gains on available for sale securities        |   |   | (445   | )      |   |     |   |          |   |          |   | (445 | ) |   | (445 | ) |
| Comprehensive                  income                                     |   |   |   |   |   |     |   |          |   |          |   |   |   |   | 1,301 |   |
| Proceeds                  from issuance of common stock                   |   |   | 31     |   |   | 31       |   |          |   |          |   |   |   |   |   |   |
| Repurchase                  of common stock                               |   |   | (27    | )      |   | (27      | )      |          |   |          |   |   |   |   |   |   |
| Cash                  dividends paid                                      |   |   | (183   | )      |   |     |   |          | (183   | )             |   |   |   |   |   |   |
| Transfers                                                                 |   |   | 0      |   |   | 1,003    |   |          | (1,003 | )             |   |     |   |   |   |   |
| Balance                  December 31, 2003                                |   |   | 18,504 |   |   | 15,332   |   |          | 2,833  |          |   | 339 |   |   |   |   |
| Net                  income, 2004, year-to-date                           |   |   | 1,400  |   |   |     |   |          | 1,400  |          |   |   |   |   | 1,400 |   |
| Unrealized                  losses on available for sale securities       |   |   | (222   | )      |   |     |   |          |   |          |   | (222 | ) |   | (222 | ) |
| Comprehensive                  income                                     |   |   |   |   |   |     |   |          |   |          |   |   |   | $ | 1,178 |   |
| Proceeds                  from issuance of common stock                   |   |   | 60     |   |   | 60       |   |          |   |          |   |   |   |   |   |   |
| Cash                  dividends paid                                      |   |   | (232   | )      |   |     |   |          | (232   | )             |   |   |   |   |   |   |
| Transfers                                                                 |   |   | 0      |   |   | 1,502    |   |          | (1,502 | )             |   |     |   |   |   |   |
| Balance,                  end-of-quarter, September 30, 2004              |   | $      | 19,510 |   | $      | 16,894   |   | $             | 2,499  |          | $      | 117 |   |   |   |   |
|                                                                      |   |   |   |   |   |     |   |          |   |          |   |   |   |   |   |   |
| Disclosure                  of 2004 reclassification amount:              |   |   |   |   |   |     |   |          |   |          |   |   |   |   |   |   |
| Unrealized                  holding loss on available for sale securities |   |   | ($299  | )      |   |     |   |          |   |          |   |   |   |   |   |   |
| Reclassification                  adjustment for gains realized in income |   |   | (37    | )      |   |     |   |          |   |          |   |   |   |   |   |   |
| Net                  unrealized loss                                      |   |   | (336   | )      |   |     |   |          |   |          |   |   |   |   |   |   |
| Tax                  effect                                               |   |   | (114   | )      |   |     |   |          |   |          |   |   |   |   |   |   |
| Net                  of tax amount                                        |   |   | ($222  | )      |   |     |   |          |   |          |   |   |   |   |   |   |

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Notes      to Consolidated Financial Statements

|                                                                              |   |                                |   |                               |   |
|-----------------------------------------------------------------------------------|--------|-------------------------------------|--------|------------------------------------|--------|
|                                                                              |   | September                  30, 2005 |   | December                  31, 2004 |   |
|                                                                              |   | Amortized                           |   | Fair                               |   | Amortized |   | Fair |   |
|                                                                              |   | Cost                                |   | Value                              |   | Cost |   | Value |   |
| Securities                  available-for-sale:                                   |   |                                |   |                               |   |   |   |   |   |
| Obligations                  of federal government agencies                       |   | $                                   | 26,697 |                               | $      | 26,433 |   | $ | 29,691 |   | $ | 29,544 |   |
| US                  Treasury securities                                           |   |                                | 5,101  |                               |   | 5,088 |   |   | 5,203 |   |   | 5,200 |   |
| Mortgage                  backed securities                                       |   |                                | 1,430  |                               |   | 1,488 |   |   | 1,951 |   |   | 2,057 |   |
| Corporate                  Bonds                                                  |   |                                | 491    |                               |   | 454 |   |   | 1,484 |   |   | 1,460 |   |
| TOTAL                                                                             |   | $                                   | 33,719 |                               | $      | 33,463 |   | $ | 38,329 |   | $ | 38,261 |   |
| Available-for-sale                  marketable equity securities(1)               |   | $                                   | 250    |                               | $      | 250 |   | $ | 0 |   | $ | 0 |   |
|                                                                              |   |                                |   |                               |   |   |   |   |   |   |   |   |   |
| Securities                  held-to-maturity:                                     |   |                                |   |                               |   |   |   |   |   |   |   |   |   |
| Obligations                  of states, municipalities and political subdivisions |   |                                | 3,546  |                               |   | 3,549 |   |   | 2,706 |   |   | 2,738 |   |
| TOTAL                                                                             |   | $                                   | 3,546  |                               | $      | 3,549 |   | $ | 2,706 |   | $ | 2,738 |   |
| Equity                  securities with a limited market                  (2)     |   | $                                   | 207    |                               | $      | 207 |   | $ | 0 |   | $ | 0 |   |
|                                                                              |   |                                |   |                               |   |   |   |   |   |   |   |   |   |

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| (1) | Represents                    those AFS marketable equity securities that are recorded in "Other                    Assets"                    on the Consolidated Balance                    Sheet. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents                    those equity securities with limited marketability that are recorded                    in                    "Other Assets," on the Consolidated Balance Sheet. These securities                    are                    reviewed quarterly to determine whether there has been any impairment                    in                    value. Securities consist of ($157k) equity investment in a Trust                    created                    by the Company in connection with issuance of trust preferred                    securities                    and ($50k) investment in an economic development company, reported                    at                    cost. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table          of Contents

|                                     |   |                        |    |                       |   |
|------------------------------------------|--------|-----------------------------|---------|----------------------------|--------|
|                                     |   | September                30 |    | December                31 |   |
|                                     |   | 2005                        |    | 2004                       |   |
|                                     |   |                        |    |                       |   |   |   |
| Commercial                loans          |   | $                           | 126,943 |                       | $      | 121,820 |   |
| Real                estate loans         |   |                        | 45,525  |                       |   | 25,644 |   |
| Consumer                and other loans  |   |                        | 8,394   |                       |   | 7,878 |   |
| Installment                loans         |   |                        | 5,170   |                       |   | 4,368 |   |
| TOTAL                LOANS               |   | $                           | 186,032 |                       | $      | 159,710 |   |
| Allowance                for loan losses |   |                        | (2,273  | )                          |   | (1,944 | ) |
| Net                deferred loan fees    |   |                        | (280    | )                          |   | (328 | ) |
| NET                LOANS                 |   | $                           | 183,479 |                       | $      | 157,438 |   |

|                                                                                                                                                                                                    |   |                                                         |   |                                           |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                                                                                                                                                                    |   | Three                months endedSeptember                30 |   | Nine-months,year-to-date,                ended |   |
|                                                                                                                                                                                                    |   | 2005                                                         |   | 2004                                           |   | 9/30/2005 |   | 9/30/2004 |   |
| Balance,                beginning of period                                                                                                                                                             |   | $                                                            | 2,117  |                                           | $      | 1,970 |   | $ | 1,944 |   | $ | 2,042 |   |
| Add                reserve for probable losses on unused loan commitments and off-balance                sheet items (OBS)                                                                              |   |                                                         | 185    |                                           |   | 199 |   |   | 206 |   |   | 182 |   |
| Balance,                beginning of period, including OBS reserve                                                                                                                                      |   |                                                         | 2,302  |                                           |   | 2,169 |   |   | 2,150 |   |   | 2,224 |   |
| Provision                for loan losses                                                                                                                                                                |   |                                                         | 90     |                                           |   | 40 |   |   | 234 |   |   | 160 |   |
| Loan                Charge-offs                                                                                                                                                                         |   |                                                         | (28    | )                                              |   | (79 | ) |   | (50 | ) |   | (259 | ) |
| Loan                Recoveries                                                                                                                                                                          |   |                                                         | 21     |                                           |   | 5 |   |   | 51 |   |   | 10 |   |
| Balance,                end of period, prior to adjustment for off-balance sheet                items                                                                                                   |   |                                                         | 2,385  |                                           |   | 2,135 |   |   | 2,385 |   |   | 2,135 |   |
| Reclassification                of reserve for probable losses on unused loan commitments and off-balance                sheet items to "Accrued interest payable and other                liabilities" |   |                                                         | (112   | )                                              |   | (205 | ) |   | (112 | ) |   | (205 | ) |
| Balance,                end of period                                                                                                                                                                   |   | $                                                            | 2,273  |                                           | $      | 1,930 |   | $ | 2,273 |   | $ | 1,930 |   |

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Table          of Contents

| Name                of Trust                            |   | Aggregateliquidationamount                of trustpreferredsecurities |   | Aggregateliquidationamount                ofcommon                capitalsecurities |   | Aggregateprincipalamount                ofjuniorsubordinateddebentures |   | Statedmaturity |   | Per                annum interest rate |   | Extensionperiod |   | Redemptionoption |   |
|---------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|----------------|--------|----------------------------------------|--------|-----------------|--------|------------------|--------|
| Northwest                Bancorporation Capital Trust I |   | $                                                                     | 5,000  |                                                                                | $      | 155                                                                    |   | $              | 5,155  |                                   |   | 2035            |   |             | 5.95   | % |   | 20                consecutive quarters |   |   | On                or after 6/22/2010 |   |

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Table          of Contents

| Name                of Trust |   | Aggregateliquidationamount                of trustpreferredsecurities |   | Aggregateliquidationamount                ofcommon                capitalsecurities |   | Aggregateprincipal                amountof                juniorsubordinateddebentures |   | Statedmaturity |   | Per                annuminterest                rate |   | Extensionperiod |   | Redemptionoption |   |
|------------------------------|--------|-----------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|----------------|--------|------------------------------------------------------|--------|-----------------|--------|------------------|--------|
| n/a                          |   | $                                                                     | -0-    |                                                                                | $      | -0-                                                                                    |   | $              | -0-    |                                                 |   | n/a             |   |             | n/a    |   |   | n/a |   |   | n/a |   |

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

Item      3.  Controls      and Procedures

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Table          of Contents

Part      II Other      Information

| Item                6. | Exhibits                and Reports on Form 8-K |
|------------------------|-------------------------------------------------|
|                   |                                            |   |
|                   | (a)                                             | Exhibit                31.1 |
|                   |                                            | Certification                of Randall L. Fewel, President and Chief Executive Officer, pursuant                to                Section 302 of the Sarbanes-Oxley Act of 2002. |
|                   |                                            |   |
|                   |                                            | Exhibit                31.2 |
|                   |                                            | Certification                of Christopher C. Jurey, Chief Financial Officer, pursuant to Section                302                of the Sarbanes-Oxley Act of 2002. |
|                   |                                            |   |
|                   |                                            | Exhibit                32.1 |
|                   |                                            | Certification                of Randall L. Fewel, President and Chief Executive Officer, pursuant                to 18                U.S.C. 1350 |
|                   |                                            |   |
|                   |                                            | Exhibit                32.2 |
|                   |                                            | Certification                of Christopher C. Jurey, Chief Financial Officer, pursuant to 18                U.S.C.                1350 |
|                   |                                            |   |
|                   | (b)                                        | Reports                on Form 8-K |
|                   |                                            |   |
|                   |                                            | The              Company filed the following report on Form 8-K during the period covered              by this Report: |
|                   |                                            |   |
|                   |                                            | Report              filed July 21, 2005.  On July 21, 2005 the Company issued a              press              release announcing financial information for the second-quarter of              2005. |

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SIGNATURES

|                                     |                                                                              |                                   |
|------------------------------------------|-----------------------------------------------------------------------------------|----------------------------------------|
|                                     | **NORTHWEST              BANCORPORATION, INC.**                                   |
|                                |                                                                         |                              |
| Date: November              8, 2005 | By:                                                                     | /s/ Randall              L. Fewel |
|                                     |                                                                                   |
|                                     | Randall              L. Fewel, President and Chief Executive              Officer |

|                                       |                                                                        |                                         |
|--------------------------------------------|-----------------------------------------------------------------------------|----------------------------------------------|
|                                       | **NORTHWEST                BANCORPORATION, INC.**                           |
|                                  |                                                                   |                                    |
| Date: November                8, 2005 | By:                                                               | /s/ Christopher                C. Jurey |
|                                       |                                                                             |
|                                       | Christopher                C. Jurey, Chief Financial                Officer |

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