LEWISTON, Idaho, Jan. 21 /PRNewswire-FirstCall/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for FirstBank
Northwest, today reported solid growth as net income improved 14.4% to
$718,662, or $0.55 per diluted share, in its third fiscal quarter ended
December 31, 2002, compared to $628,108, or $0.45 per diluted share, in the
like quarter a year ago. Total assets grew 9.7% to $325.9 million, compared
to $297.1 million last year. "The Company certainly remains on course to meet
expected annual income and asset growth targets for fiscal year 2003," said
Clyde E. Conklin, President and Chief Executive Officer.
FirstBank also announced its Board of Directors has declared a regular
quarterly cash dividend of $0.15 per common share. The dividend will be paid
February 20, 2003 to shareholders of record at February 6. This marks the
22nd regular quarterly cash dividend since FirstBank's conversion to the stock
form of ownership in July 1997.
"Net income continues to benefit from net interest income with the growth
in earning assets and improved non-interest income," said Conklin. Net
interest income for the quarter ending December 31, 2002 was $2.7 million
after provisions, compared to $2.3 million for the same period ending
December 31, 2001, an increase of 16.0%. Gain on sale of loans remains strong
at $608,330 for the quarter ending December 31, 2002 compared to $561,563 for
the quarter ending December 31, 2001. Larry K. Moxley, Executive Vice
President and Chief Financial Officer noted that, "The gain on sale of loans
of $608,330 was excellent considering that a $226,000 charge to loan fee
income was taken for Mortgage Servicing Rights valuation. Gain on sale of
loans continues to benefit from a vibrant market and increased volume from the
Mortgage Loan Center recently opened in Boise, ID." Total non-interest income
was $3.2 million for the first nine months of fiscal year 2003 compared to
$3.1 million in the like period a year ago.
Gross loans grew 17.9% to $280.4 million on December 31, 2002 from
$237.8 million on December 31, 2001. "Loan growth has continued as
anticipated, and FirstBank's market share continues to improve," said Conklin.
"We continue to look for appropriately priced loan assets that meet our credit
and interest rate risk policies."
Total branch deposits were $192.2 million as of December 31, 2002 compared
to $164.4 million as of December 31, 2001, an increase of 17% from last year.
"Core deposits, including checking, savings and money market funds represent
48% of our branch deposits," noted Moxley. "Branch deposits represent 66% of
total funding on December 31, 2002. The remaining funding is composed of
Federal Home Loan Bank funds and brokered CD funds, which are structured into
longer term instruments to balance interest rate risk.
"Mortgage loans now represent only 21.7% of the total loan portfolio,"
continued Moxley. "Our balance sheet more typically reflects a commercial bank
versus a thrift. Commercial and agricultural loans represent 53.1% of the
total portfolio as compared to 52.5% last year. Based on the loan portfolio
growth, portfolio diversification, and the continued weakness of the economy,
we increased reserve allowances accordingly. We have increased allowances for
loan losses from $2.4 million, or 1.02% of net loans as of December 31, 2001,
to $3.2 million, or 1.23% of net loans as of December 31, 2002," said Moxley.
"Asset quality remains very good, however total non-performing assets as
of December 31, 2002 increased to $2.19 million, up from $1.58 million as of
December 31, 2001," said Conklin. Non-performing assets to total assets
increased from 0.53% on December 31, 2001 to 0.67% on December 31, 2002.
Allowances to non-performing assets, including REOs and restructured loans,
decreased slightly from 150.22% as of December 31, 2001 to 145.46% as of
December 31, 2002. "We continue to be vigilant in our efforts to identify
non-performing assets and reserve appropriately for our credit risks in the
portfolio," said Conklin. "The December 31, 2002 non-performing assets of
$2.19 million and the allowance to non-performing assets ratio of 145.46% are
slight improvements over the September 30, 2002 reported non-performing assets
of $2.3 million, and allowance to non-performing assets ratio of 124.96%."
Mr. Conklin went on to note that, "FirstBank's market area continues to
experience a slow economy."
Non-interest, or operating expense, increased to $2.88 million for the
quarter, compared to $2.48 million a year ago. FirstBank's efficiency ratio
was 66.2% in its third fiscal quarter, compared to 64.7% for the like quarter
a year ago.
"Since July 1998, we have completed stock repurchases totaling 34% or
686,828 of FBNW shares, of which 4% have been reissued to fund employee stock
benefit plans, for a net repurchase of 30%," said Conklin. "The Board of
Directors authorized the repurchase of 69,300 shares on October 17, 2002,
which is currently underway."
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank Northwest is based in Lewiston, Idaho, and is known as the local
community bank, offering its customers highly personalized service in the many
communities it serves. At closing on Friday, January 17, 2003, FBNW shares
traded at $20.87 per share, or 92% of book value.
Statements concerning future performance, developments or events,
concerning expectations regarding expansion opportunities, technology
efficiencies, 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 interest rate fluctuations, regional
economic conditions, competitive factors, and government and regulatory
actions that might cause actual results to differ materially from stated
expectations.
FIRSTBANK NW CORP
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except share and per share data)
Three Months Ended Nine Months Ended
December 31, December 31,
2002 2001 2002 2001
Interest Income $5,266 $4,947 $15,495 $15,447
Interest Expense 2,191 2,325 6,669 7,787
Provision for Loan Losses 359 281 797 695
Net Interest Income After
Provision for Loan Losses 2,716 2,341 8,029 6,965
Non-Interest Income
Gain on sale of loans 608 562 1,532 1,397
Gain on sale of securities, net 0 0 0 175
Mortgage Servicing Fees 50 63 142 180
Service fees and charges 451 443 1,410 1,252
Commission and other 39 26 122 91
Total Non-Interest Income 1,148 1,094 3,206 3,095
Non-Interest Expenses
Compensation and
Related Expenses 1,822 1,489 5,287 4,396
Occupancy 307 299 933 916
Other 752 692 2,295 2,030
Total Non-Interest Expense 2,881 2,480 8,515 7,342
Income Tax Expense 264 327 725 914
Net Income $719 $628 $1,995 $1,804
Basic Earnings per Share $0.56 $0.47 $1.55 $1.31
Diluted Earnings per Share $0.55 $0.45 $1.49 $1.28
Proforma Basic
Cash Earnings per Share (A) $0.59 $0.50 $1.63 $1.39
Proforma Diluted
Cash Earnings per Share (A) $0.57 $0.48 $1.57 $1.36
Weighted Average
Shares Outstanding - Basic 1,281,290 1,329,762 1,290,530 1,375,366
Weighted Average Shares
Outstanding - Diluted 1,313,479 1,382,093 1,338,698 1,408,374
Actual Shares Outstanding 1,380,992 1,452,592 1,380,992 1,452,592
Dec. 31, March 31, Dec. 31,
2002 2002 2001
Total Assets $325,878 $307,840 $297,101
Cash and Cash Equivalents $15,828 $24,012 $18,796
Loans Receivable, net $260,118 $238,136 $231,906
Mortgage-Backed Securities $10,442 $11,433 $12,226
Investment Securities $16,581 $12,524 $12,202
Stock in FHLB, at cost $5,637 $5,380 $5,302
Deposits $209,703 $196,123 $178,828
FHLB Advances & Other Borrowings $81,565 $79,722 $86,749
Stockholders' Equity $29,422 $27,813 $27,616
Book Value per Share (B) $22.73 $20.72 $20.36
FASB 115 Adjustment after Taxes $1,087 $174 $179
Equity/ Total Assets 9.03% 9.03% 9.30%
Tier 1 Capital to Average Assets 8.25% 8.79% 9.13%
Risk-based Capital
to Risk-Weighted Assets 13.08% 13.47% 13.93%
Number of full-time
equivalent Employees 137 122 117
(A) Cash earnings per share exclude management recognition and
development plan expense that will continue until September of 2003.
(B) Calculation is based on number of shares outstanding at the end of
the period rather than weighted average shares outstanding and
excludes unallocated shares in the employee stock ownership plan
(ESOP) 12/02--88,051 shares, 3/02 -- 94,321 shares,
12/01 -- 96,410 shares.
FINANCIAL STATISTICS
(ratios annualized)
Fiscal
Three Months Ended Year Ended Nine Months Ended
December 31, March 31, December 31,
2002 2001 2002 2002 2001
Return on Average Assets 0.88% 0.88% 0.82% 0.84% 0.85%
Return on Average Equity 9.75% 8.99% 8.47% 9.19% 8.58%
Average Equity/
Average Assets 8.98% 9.78% 9.73% 9.17% 9.85%
Average Equity/
Average Loans 11.52% 12.64% 12.48% 11.73% 12.60%
Efficiency Ratio (C) 66.20% 64.69% 66.57% 68.58% 66.52%
Operating Expenses/
Average Assets 3.51% 3.47% 3.39% 3.60% 3.44%
Net Interest Margin 4.21% 4.12% 3.96% 4.18% 3.99%
Average Interest
Earning Assets/Average
Deposits and Other
Borrowed Funds 103.99% 105.18% 105.24% 104.28% 105.31%
Nine Months Fiscal Year Nine Months
Ended Ended Ended
December 31, March 31, December 31,
2002 2002 2001
LOANS
(unaudited) (in thousands except share and per share data)
LOAN ORIGINATIONS (D):
Residential loan centers $154,441 $112,785 $90,643
Consumer loan centers 10,146 16,138 13,426
Agricultural loan centers 19,911 25,229 17,456
Commercial loan centers 87,127 85,517 57,693
Total Loan Origination $271,625 $239,669 $179,218
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $60,739 $66,420 $69,747
Construction 40,954 9,870 9,468
Agricultural 16,475 16,264 15,822
Commercial 68,696 52,496 47,303
Total real estate loans 186,864 145,050 142,340
Consumer and other loans:
Home equity 21,679 24,832 25,632
Agricultural operating 14,736 12,289 12,394
Commercial 48,989 55,568 49,380
Other consumer 8,164 7,924 8,097
Total consumer
and other loans 93,568 100,613 95,503
Total Loans Receivable $280,432 $245,663 $237,843
Nine Months Fiscal Year Nine Months
Ended Ended Ended
December 31, March 31, December 31,
2002 2002 2001
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $2,563 $1,758 $1,758
Provision for Loan Losses 797 1,064 695
Charge offs (Net of Recoveries) (170) (259) (87)
Balance at End of Period $3,190 $2,563 $2,366
Loan Loss Allowance/
Net Loans 1.23% 1.08% 1.02%
Loan Loss Allowance/
Non-Performing Loans 185.14% 433.67% 171.33%
(C) Calculation is non-interest expense divided by tax equivalent
non-interest income and net interest income.
(D) Loan originations are based upon new production.
NON-PERFORMING ASSETS:
Nine Months Fiscal Year Nine Months
Ended Ended Ended
December 31, March 31, December 31,
2002 2002 2001
Accruing Loans
- 90 Days Past Due $0 $0 $0
Non-accrual Loans 1,723 591 1,381
Total Non-performing Loans 1,723 591 1,381
Restructured Loans on Accrual 412 107 17
Real Estate Owned (REO) 58 424 177
Total Non-performing Assets $2,193 $1,122 $1,575
Total Non-performing
Assets/Total Assets 0.67% 0.36% 0.53%
Loan and REO Loss
Allowance as a % of
Non-Performing Assets 145.46% 228.43% 150.22%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Fiscal
Three Months Ended Year Ended Nine Months Ended
December 31, March 31, December 31,
2002 2001 2002 2002 2001
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage
Loans receivable $62,813 $70,398 $71,426 $64,087 $73,438
Average Commercial
Loans receivable 111,669 84,142 87,022 106,046 81,886
Average Construction
Loans receivable 23,287 7,101 6,659 16,929 6,489
Average Consumer
Loans receivable 30,586 34,179 34,657 31,859 35,152
Average Agricultural
Loans receivable 31,793 27,949 27,748 31,307 27,918
Average unearned
loan fees and discounts,
allowance for loan
losses, and other (4,091) (2,775) (2,659) (3,638) (2,529)
Total Average Loans
receivable, net 256,057 220,994 224,853 246,590 222,354
Average Mortgage-backed
securities 10,753 12,842 14,036 11,068 14,716
Average
Investment securities 15,505 12,535 12,448 13,847 12,479
Average
Other earning assets 22,402 19,415 17,886 22,208 15,935
Total Average Interest
Earning Assets 304,717 265,786 269,223 293,713 265,484
Average Non-Interest
Earning Assets 23,567 19,754 19,110 21,845 19,078
Total Average Assets $328,284 $285,540 $288,333 $315,558 $284,562
Average Interest Bearing Liabilities:
Average Passbook,
NOW, and money
market accounts $70,931 $57,543 $53,960 $66,665 $52,019
Average Certificate
of deposits 110,403 100,653 98,701 107,993 96,006
Average Advances
from FHLB and other 81,358 73,193 83,395 81,508 84,145
Total Average
Interest Bearing
Liabilities 262,692 231,389 236,056 256,166 232,170
Average Non-Interest
Bearing Deposits 30,338 21,309 19,752 25,499 19,927
Average Deposits
and Other
Borrowed Funds 293,030 252,698 255,808 281,665 252,097
Average Non-Interest
Bearing Liabilities 5,758 4,911 4,467 4,958 4,444
Total
Average Liabilities 298,788 257,609 260,275 286,623 256,541
Total
Average Equity 29,496 27,931 28,058 28,935 28,021
Total
Average Liabilities
and Equity $328,284 $285,540 $288,333 $315,558 $284,562
Interest Rate Yield
on Earning Assets 7.08% 7.62% 7.67% 7.21% 7.90%
Interest Rate Expense
on Deposits and Other
Borrowed Funds 2.99% 3.68% 3.91% 3.16% 4.12%
Interest Rate Spread 4.09% 3.94% 3.76% 4.05% 3.78%
Net Interest Margin 4.21% 4.12% 3.96% 4.18% 3.99%
SOURCE FirstBank NW Corp.
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Related links:
http://www.fbnw.com
CONTACT:
Larry K. Moxley, Exec. VP & CFO of FirstBank
NW Corp., +1-208-746-9610
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