31% Net Income Increase, or 36% EPS Growth;
Declares Regular Quarterly Cash Dividend of $0.12 Per Share
LEWISTON, Idaho, Jan. 22 /PRNewswire-FirstCall/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for FirstBank
Northwest, today reported solid growth as net income improved 31% to $628,000,
or $0.45 per diluted share, in its third fiscal quarter ended December 31,
2001, compared to $478,000, or $0.33 per diluted share, in the like quarter a
year ago. Total assets grew 7.3% to $297 million, compared to $277 million
last year. "The Company certainly remains on course to meet expected annual
income and asset growth targets for fiscal year 2002," said Clyde E. Conklin,
President and Chief Executive Officer.
FirstBank also announced its Board of Directors has declared a regular
quarterly cash dividend of $0.12 per common share. The dividend will be paid
February 21, 2002 to shareholders of record at February 7. This marks the 18th
regular quarterly cash dividend since FirstBank's conversion to the stock form
of ownership in July 1997.
"Net income continues to benefit from reduced interest expense and
improved non-interest income. Gain on sale of loans is up 117%, from $645,000
to $1,397,000 for the nine month periods ending December 31, 2000 versus
December 31, 2001, respectively," said Conklin. "Gain on sale of loans was
enhanced by a vibrant refinance market during the quarter. Recent mortgage
rate increases have slowed refinance applications, which is expected to reduce
the high level of fee income in the fourth quarter of fiscal 2002. However, we
do anticipate income from gain on sale of loans to meet initial budgeted
levels," continued Conklin. Non-interest income was $3.1 million for the first
nine months of fiscal year 2002 compared to $1.9 million in the like period a
year ago.
"The declining interest rate environment and steepening yield curve
improved net interest income from $2.2 million for three months ending
December 31, 2000 to $2.3 million for three months ending December 31, 2001,"
said Conklin. "The net interest margin improved to 4.12% for the three month
period ending December 31, 2001 compared to 3.82% for the three month period
ending December 11, 2000."
Gross loans grew 8.9% to $237.8 million on December 31, 2001 from
$218.4 million on December 31, 2000. "Loan growth has continued as
anticipated, and FirstBank's market share continues to improve in a slowing
economy," said Conklin. "We continue to look for appropriately priced loan
assets that meet our credit and interest rate risk policies.
"Mortgage loans now represent only 29.3% of the total loan portfolio,"
said Larry K. Moxley, Executive Vice President and Chief-Financial Officer.
"Our balance sheet more typically reflects a commercial bank versus a thrift.
Commercial and agricultural loans represent 52.5% of the total portfolio as
compared to 46.6% last year. Based on the loan portfolio growth, portfolio
diversification, and the continued deterioration of the economy, we increased
reserve allowances accordingly. We have increased allowances for loan losses
from $1.8 million, or 0.80% of net loans as of March 31, 2001, to
$2.4 million, or 1.02% of net loans as of December 31, 2001," said Moxley.
"Asset quality remains very good as evidenced by lack of material growth in
non-performing assets; $1.6 million, or 0.53% of total assets as of December
31, 2001, compared to $1.5 million, or 0.53% of total assets as of March 31,
2001."
Non-interest, or operating expense, increased to $2.5 million for the
quarter, compared to $2.2 million a year ago. FirstBank's efficiency ratio
improved to 64.7% in its third fiscal quarter, compared to 74.1% for the like
quarter a year ago.
"Since July 1998, we have completed stock repurchases totaling 27% or
531,158 of FBNW shares, of which 4% have been reissued to fund employee stock
benefit plans, for a net repurchase of 23%," said Conklin. "The Board of
Directors authorized the repurchase of 153,000 shares on May 17, 2001, 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 yesterday, FBNW shares traded at $17.50 per
share, or 86% 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,
2001 2000 2001 2000
Interest Income $4,947 $5,292 $15,447 $15,355
Interest Expense 2,325 2,998 7,787 8,617
Provision for
Loan Losses 281 76 695 209
Net Interest Income
After Provision for
Loan Losses 2,341 2,218 6,965 6,529
Non-Interest Income
Gain on sale of loans 562 196 1,397 645
Gain on sale of
securities, net 0 0 175 0
Mortgage Servicing Fees 63 57 180 181
Service fees and charges 443 340 1,252 989
Commission and other 26 32 91 88
Total Non-Interest
Income 1,094 625 3,095 1,903
Non-Interest Expenses
Compensation and
Related Expenses 1,489 1,272 4,396 3,707
Occupancy 299 302 916 923
Other 692 589 2,030 1,773
Total Non-Interest
Expense 2,480 2,163 7,342 6,403
Income Tax Expense 327 202 914 623
Net Income $628 $478 $1,804 $1,406
Basic Earnings per Share $0.47 $0.34 $1.31 $1.00
Diluted Earnings
per Share $0.45 $0.33 $1.28 $0.97
Proforma Basic Cash
Earnings per Share (A) $0.50 $0.37 $1.39 $1.08
Proforma Diluted
Cash Earnings
per Share (A) $0.48 $0.36 $1.36 $1.04
Weighted Average
Shares Outstanding-
Basic 1,329,762 1,392,605 1,375,366 1,407,714
Weighted Average
Shares Outstanding-
Diluted 1,382,093 1,437,455 1,408,374 1,455,257
Actual Shares
Outstanding 1,452,592 1,546,953 1,452,592 1,546,953
December 31, March 31, December 31,
2001 2001 2000
Total Assets $297,101 $281,062 $276,810
Cash and Cash Equivalents $18,796 $12,805 $13,729
Loans Receivable, net $231,906 $219,151 $213,829
Mortgage-Backed Securities $12,226 $20,039 $20,206
Investment Securities $12,202 $12,568 $12,434
Stock in FHLB, at cost $5,302 $5,032 $4,714
Deposits $178,828 $157,797 $151,618
FHLB Advances & Other Borrowings $86,749 $90,917 $95,028
Stockholders' Equity $27,616 $27,976 $27,294
Book Value per Share (B) $20.36 $19.39 $18.95
FASB 115 Adjustment after Taxes $179 $600 $339
Equity/Total Assets 9.30% 9.95% 9.86%
Tier I Capital to Average Assets 9.13% 9.18% 9.36%
Risk-based Capital to Risk-Weighted
Assets 13.93% 14.45% 13.45%
Number of full-time equivalent
Employees 117 113 111
(A) Cash earnings per share excludes 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)
12/01 -- 96,410 shares, 3/01 -- 104, 225 shares, 12/00 -- 106,314
shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Fiscal Nine Months Ended
December 31 Year Ended December 31,
2001 2000 March 31, 2001 2001 2000
Return on Average Assets 0.88% 0.71% 0.71% 0.85% 0.72%
Return on Average Equity 8.99% 7.19% 7.07% 8.58% 7.15%
Average Equity/Average
Assets 9.78% 9.93% 10.00% 9.85% 10.01%
Average Equity/
Average Loans 12.64% 12.89% 13.01% 12.60% 13.05%
Efficiency Ratio (C) 64.69% 74.10% 72.64% 66.52% 74.10%
Operating Expenses /
Average Assets 3.47% 3.23% 3.27% 3.44% 3.26%
Net Interest Margin 4.12% 3.82% 3.83% 3.99% 3.83%
Interest Earning Assets /
Interest Bearing
Liabilities 105.18% 104.52% 104.52% 105-31% 104.27%
Nine Months Ended Year Ended Nine Months Ended
December 31, March 31, December 31,
2001 2001 2000
LOANS
(unaudited) (in thousands, except share and per share data)
LOAN ORIGINATIONS (D):
Residential loan centers $90,643 $70,175 $50,347
Consumer loan centers 13,426 17,287 13,076
Agricultural loan centers 17,456 22,011 17,135
Commercial loan centers 57,693 58,933 47,980
Total Loan Origination $179,218 $168,406 $128,538
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $69,747 $74,892 $74,009
Construction 9,468 8,028 7,065
Agricultural 15,822 15,383 15,481
Commercial 47,303 37,969 34,167
Total real estate loans 142,340 136,272 130,722
Consumer and other loans:
Home equity 25,632 27,323 27,080
Agricultural operating 12,394 10,938 12,420
Commercial 49,380 41,789 39,704
Other consumer 8,097 8,255 8,450
Total consumer and
other loans 95,503 88,305 87,654
Total Loans Receivable $237,843 $224,577 $218,376
Nine Months Ended Year Ended Nine Months Ended
December 31, March 31, December 31,
2001 2001 2000
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $1,758 $1,604 $1,604
Provision for Loan Losses 695 303 209
Charge offs (Net of Recoveries) 87 149 86
Balance at End of Period $2,366 $1,758 $1,727
Loan Loss Allowance/Net Loans 1.02% 0.80% 0.81%
Loan Loss Allowance/
Non-Performing Loans 171.33% 121.83% 118.53%
(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 Ended Year Ended Nine Months Ended
December 31, March 31, December 31,
2001 2001 2000
Accruing Loans - 90 Days
Past Due $0 $282 $508
Non-accrual Loans 1,381 1,161 949
Total Non-performing Loans 1,381 1,443 1,457
Restructured Loans on Accrual 17 0 195
Real Estate Owned (REO) 177 33 113
Total Non-performing Assets $1,575 $1,476 $1,765
Total Non-performing Assets/
Total Assets 0.53% 0.53% 0.64%
Loan and REO Loss Allowance
as a % of Non-Performing
Assets 150.22% 119.11% 97.85%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Three Months Ended Fiscal Nine Months Ended
December 31, Year Ended December 31,
2001 2000 March 31, 2001 2001 2000
Average Interest
Earning Assets:
Average Loans receivable:
Average Mortgage
Loans receivable $70,398 $72,776 $72,629 $73,438 $73,098
Average
Commercial Loans
receivable 84,142 68,384 66,492 81,886 62,751
Average
Construction
Loans receivable 7,101 5,836 5,485 6,489 5,218
Average Consumer
Loans receivable 34,179 35,476 34,677 35,152 34,458
Average
Agricultural
Loans receivable 27,949 25,872 27,258 27,918 27,524
Average unearned
loan fees and
discounts,
allowance for
loan losses,
and other (2,775) (2,186) (2,095) (2,529) (2,077)
Total Average Loans
receivable, net 220,994 206,158 204,446 222,354 200,972
Average Mortgage-
backed securities 12,842 19,996 20,279 14,716 20,368
Average Investment
securities 12,535 12,006 11,901 12,479 11,720
Average Other
earning assets 19,415 10,930 11,479 15,935 10,622
Total Average
Interest Earning
Assets 265,796 249,090 248,105 265,494 243,682
Average Non-
Interest Earning
Assets 19,754 18,580 17,802 19,078 17,922
Total Average
Assets $285,540 $267,670 $265,907 $284,562 $261,604
Average Interest
Bearing Liabilities:
Average Passbook, NOW,
and money market
accounts $78,852 $65,243 $63,486 $71,946 $65,070
Average
Certificate of
deposits 100,653 85,057 83,670 96,006 81,068
Average Advances
from FHLB and
other 73,193 87,523 88,747 84,145 87,557
Total Average
Interest
Bearing
Liabilities 252,698 237,823 235,903 252,097 233,695
Average Non-
Interest
Bearing
Liabilities 4,911 3,267 3,408 4,444 1,683
Total Average
Liabilities 257,609 241,090 239,311 256,541 235,378
Total Average
Equity 27,931 26,580 26,596 28,021 26,226
Total Average
Liabilities
and Equity $285,540 $267,670 $265,907 $284,562 $261,604
Interest Rate
Yield on Earning
Assets 7.62% 8.63% 8.51% 7.90% 8.55%
Interest Rate
Expense on
Interest Bearing
Liabilities 3.68% 5.03% 4.92% 4.12% 4.92%
Interest Rate
Spread 3.94% 3.60% 359% 3.78% 3.63%
Net Interest Margin 4.12% 3.82% 3.83% 3.99% 3.83%
SOURCE FirstBank NW Corp.
back to top
