LEWISTON, Idaho, Jan. 21 /PRNewswire/ -- FirstBank Corp. (Nasdaq: FBNW),
the holding company for FirstBank Northwest, today reported its results, which
continue to be strong with net income having increased 19%, assets up
11%, loans up 12% and deposits up 16% for the third quarter of fiscal 1999.
Net income rose to $544,000 or $.30 per share (diluted), from $458,000, or
$.25 per share in the year-ago quarter. FirstBank reported net income of
$1.5 million or $.82 per share (diluted) for the nine months ended
December 31, 1998, compared to net income of $1.2 million or $.64 per share
in the year ago period.
Non-interest income was especially strong, increasing 41% to $894,000 in
the third quarter and gaining more than 45% to $2.4 million in the first nine
months of fiscal 1999. The increase is due primarily to gains on sale of
loans as well as increased fee income.
"The money and time we've invested in new products and services is paying
off," said Clyde E. Conklin, Chief Executive Officer. "FirstBank's strategy
to emphasize commercial and agricultural lending has boosted the more
profitable side of our loan portfolio, which in turn has added to fee income.
Loan originations of $136.8 million for the nine months were 32% above year
ago levels, while the total loan portfolio grew more than 17% to
$174.9 million at December 31, 1998. Even as loans have increased nicely,
nonperforming assets declined to just 0.36% of total assets, reflecting our
emphasis on quality lending.
"Despite some published concerns about the state of agriculture in eastern
Washington and central Idaho, our agricultural lending business has been
robust, and we see little evidence of a downturn in our portfolio," Conklin
noted. "Agricultural operating loans more than doubled to $4.2 million while
agricultural real estate lending increased 16% to $15.4 million. Commercial
real estate and non-real estate loans also each more than doubled -- to
$22.1 million in real estate and $25.6 million in commercial non-real estate
at December 31, 1998 -- from year ago levels, or more than 27% of total loans
receivable compared to just 15% one year ago."
"Reflecting this shift, residential real estate has declined to about
48% of FirstBank's total loans compared to 60% in December 1997," added Larry
K. Moxley, Executive Vice President and Chief Financial Officer.
"Agricultural real estate and operating loans increased to more than 11% of
total loans, while construction loans accounted for about 5%." FirstBank's
net loan portfolio increased 12% to $161.1 million at the end of December from
$143.5 million a year ago. FirstBank also services a portfolio of loans for
other investors that totaled $150.4 million at December 31, 1998 and generated
approximately $105,000 in fee income during the quarter.
"Reflecting the cost of increasing services, non-interest expense rose
18% to $1.9 million in the latest quarter. As we are in the process of
opening two new branches in the next six months, operating expenses are likely
to remain relatively high for the next several quarters as these new offices
grow toward profitability. We are striving to keep our costs as low as
possible even as we build for long-term growth," Moxley noted. FirstBank's
efficiency ratio was 68.2% for the third quarter of fiscal 1999 compared to
67.5% a year ago.
FirstBank's net interest income after loan loss provision rose 8% to
$1.9 million in the third quarter of fiscal 1999; for the nine months, it
increased 14% to $5.5 million. Net interest margin for the third quarter of
fiscal 1999 was 4.21%, compared to net margin of 4.26% one year ago.
Deposits grew nearly 16% to $128.7 million at December 31, 1998, from
$111.4 million one year ago. "Core deposits continued to show good increases,
with checking accounts accounting for approximately $8.0 million of the
growth," Moxley said.
FirstBank Corp.'s assets increased 11% to $203.6 million from
$183.3 million a year ago. Shareholders' equity declined slightly to
$28.1 million as the company is employing the $19 million raised in its
conversion to stock form of ownership during 1997. FBNW book value equaled
$16.05 per share and the equity to asset ratio was 13.8% at December 31, 1998.
"FirstBank has had an excess of capital and we're eager to put that to
work," Conklin said. "We've already announced a new branch to be built in
Liberty Lake, Washington, this summer as well as a supermarket branch to open
in Post Falls, Idaho, this spring. Both are on the busy Spokane to Coeur
d'Alene corridor. Some other innovative programs are being tested which will
be announced in the near future."
FirstBank Corp. is the parent of FirstBank Northwest, headquartered in
Lewiston, Idaho at the northern end of Hell's Canyon. Founded in 1920, the
Bank converted from its charter as a federal stock savings bank to a
Washington State savings bank charter February 2, 1998. FirstBank currently
operates six branch locations along the Idaho/ Eastern Washington border. Its
Idaho branches are located in Lewiston, Orchards, Moscow, Grangeville, and
Coeur d'Alene. Its Washington branch is in Clarkston, across the Snake River
from Lewiston. FirstBank also has two residential loan centers located in
Lewiston and Coeur d'Alene. The Bank is known as the local community bank,
offering its customers highly personalized service in the many communities it
serves. FBNW shares closed the trading day yesterday, January 20th, at
$15.00 per share.
Statements concerning future performance, developments or events,
concerning expectations regarding expansion opportunities, growth and market
forecasts, new products and services, and any other guidance on future
periods, constitute forward-looking statements which are subject to a number
of risks and uncertainties including regional economic conditions, interest
rate fluctuations, and government and regulatory actions which might cause
actual results to differ materially from stated expectations.
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except per share)
Third Quarter Ended Nine Months Ended
December 31, December 31,
1998 1997 1998 1997
Total Interest Income $3,769 $3,479 $11,273 $9,845
Interest Expense $1,852 $1,695 $5,470 $4,854
Provision for Loan Losses $65 $75 $265 $143
Net Interest Income After
Provision for Loan Losses $1,853 $1,709 $5,537 $4,848
Non-Interest Income $894 $633 $2,377 $1,635
Non-Interest Expense $1,917 $1,632 $5,600 $4,638
Income Tax Expense $285 $252 $824 $680
Net Income $544 $458 $1,490 $1,165
Basic Earnings Per Share $0.32 $0.25 $0.84 $0.64
Diluted Earnings Per Share $0.30 $0.25 $0.82 $0.64
Weighted Average Shares
Outstanding: basic 1,716,730 1,831,659 1,774,171 1,825,338
Weighted Average Shares
Outstanding: diluted 1,796,080 1,831,659 1,809,247 1,825,338
Dec. 31, March 31, Dec. 31,
1998 1998 1997
Total Assets $203,615 $183,563 $ 183,292
Loans Receivable, net $161,140 $145,697 $143,502
Mortgage-Backed Securities $11,136 $11,390 $12,165
Investment Securities $7,146 $5,104 $5,825
Deposits $128,736 $114,495 $111,417
FHLB Advances $43,802 $35,656 $38,902
Shareholders' Equity $28,092 $30,008 $29,652
Book Value per Share $16.36 $16.40 16.19
Number of full-time
Equivalent Employees 94 95 91
Equity/Total Assets 13.80% 16.35% 16.20%
Spread (yield, less cost
of funds) 3.87% 3.79% 3.78%
Tier 1 Capital to Average
Assets 11.00% 11.56% 11.18%
Risk-based Capital to
Risk-Weighted Assets 15.70% 18.05% 17.70%
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Nine Months Ended
December 31, December 31,
1998 1997 1998 1997
Return on Average Assets 1.08% 1.01% 1.02% 0.70%
Return on Average Equity 7.55% 6.18% 6.72% 7.28%
Average Equity/Average Assets 14.30% 16.39% 15.19% 12.92%
Average Equity/Average Loans 18.38% 21.35% 19.28% 22.08%
Efficiency Ratio
(operating expense/revenue) 68.22% 67.53% 68.46% 70.00%
Operating Expense/Average Assets 3.80% 3.61% 3.83% 3.72%
Net Interest Margin 4.21% 4.26% 4.38% 4.29%
Interest Earning Assets /
Interest Bearing Liabilities 111.14% 120.53% 112.73% 110.31%
LOANS
(unaudited)(in thousands except per share)
Nine Months Ended
Dec. 31, Dec. 31,
1998 1997
LOAN ORIGINATIONS: $136,779 $103,699
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $84,040 $89,150
Construction $8,886 $9,560
Agricultural $15,359 $13,244
Commercial $22,075 $10,472
Total real estate loans $130,360 $122,426
Consumer and other loans:
Home equity $5,923 $6,555
Agricultural operating $4,162 $2,200
Commercial $25,637 $12,312
Other consumer $8,834 $5,485
Total consumer and other loans $44,556 $26,552
Total Loans Receivable $174,916 $148,978
Third Quarter Ended
December 31,
1998 1997
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $1,120 $974
Provision for Loan Losses $265 $143
Charge offs (Net of Recoveries) $29 $52
Balance at End of Period $1,356 $1,065
Loan Loss Allowance / Net Loans 0.84% 0.74%
Loan Loss Allowance / Non-Performing Loans 316.08% 181.12%
NON-PERFORMING ASSETS:
December 31,
1998 1997
Accruing Loans - 90 Days Past Due $65 $19
Non-Accrual Loans $364 $569
Total Non-Performing Loans $429 $588
Real Estate Owned (REO) $299 $587
Total Non-Performing Assets $728 $1,175
Total Non-Performing Assets / Total Assets 0.36% 0.64%
Loan and REO Loss Allowance as a %
of Non-Performing Assets 186.26% 90.64%
SOURCE FirstBank Corp.
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Related links:
http://www.firstbanknw.com
Company News On-Call:
http://www.prnewswire.com/comp/124037.html or fax,
800-758-5804, ext. 124037
CONTACT:
Larry K. Moxley, Exec. VP & CFO of FirstBank
Corp., 208-746-9610
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