Pacific Northwest Bancorp (Nasdaq: PNWB) has record quarterly earnings of $8 million or 51 cents per diluted share for the third quarter of 2002. This was a 31-percent increase compared to $6.1 million or 39 cents per diluted share for the same quarter last year.

Net income was $23.4 million or $1.49 per diluted share for the nine months ending Sept. 30, a 55 percent increase compared to $15.1 million or 96 cents per diluted share for the same period last year.

During the third quarter of 2002 Pacific Northwest Bank announced the planned acquisition of Bank of the Northwest. The acquisition is expected to be finalized during the fourth quarter.

Non-performing assets decreased $2.3 million on 11.3 percent from June 30, and decreased $6 million on 24.3 percent from Sept. 30, 2001. Core deposits increased $44.5 million or 4.5 percent since June 30, and increased $182.6 million or 21.4 percent since Sept. 30, 2001.

Efficiency ratio showed continued improvement to 57.3 percent for the quarter ended Sept. 30, and 11-percent decrease from 64.4 percent a year ago.