LEWISTON, Idaho, Jan. 25 /PRNewswire/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for FirstBank
Northwest, today reported continued growth as assets increased 20% to
$244 million, loans rose 12% to $181 million and deposits grew 13% to
$146 million at December 31, 1999 compared to prior year results.
On January 20, 2000, the Board of Directors for FirstBank NW declared a
regular quarterly cash dividend of $.09 per common share. The dividend will be
paid on February 25, 2000 to shareholders of record at February 11, 2000. This
is the tenth consecutive regular quarterly cash dividend since FirstBank NW's
conversion to the stock form of ownership in July 1997.
Net income was $507,000, or $.32 per diluted share for the three month
period ended December 31, 1999, compared to $544,000, or $.30 per diluted
share, in the comparable quarter a year ago. For the nine months ended
December 31, 1999, FirstBank NW recorded net income of $1.3 million, or
$.81 per diluted share, compared to net income of $1.5 million or $.82 per
diluted share in the like period a year ago. FirstBank's on-going stock
repurchase program reduced diluted weighted average shares outstanding by
approximately 11% for the quarter, and 10% for the nine month period compared
to the year before.
Net interest income after provision for loan losses jumped 16% to
$2.1 million from $1.9 million in the third quarter of fiscal 1999. For the
nine month period, net interest income was up 12% to $6.2 million from
$5.5 million in the like period a year ago. FirstBank's net interest margin
for the quarter was 4.18% compared to 4.21% one year ago.
"Asset, loan and deposit growth has been consistently strong. Expanded
customer relationships have added to our success," said Clyde E. Conklin,
President and Chief Executive Officer. "Deposits gained 13% to $145.6 million
at December 31, 1999, from $128.7 million one year ago, despite the difficult
market environment experienced by many institutions. We're especially pleased
by the growth in core deposits. Core deposits (money markets, checking
accounts and passbook savings) have increased to 45% of total deposits at
December 31, 1999 from 41% of total deposits one year ago. Our team has been
especially successful at developing total banking relationships with many
commercial accounts that started only with loans."
"Our diverse loan portfolio has grown 12% since last year and is
performing well," said Larry K. Moxley, Executive Vice President and Chief
Financial Officer. "Higher-margin commercial and agricultural lending
activities now represent 28% and 13% respectively of our total loan portfolio.
We are concerned about a decline in loan originations, primarily in
residential mortgages, which impacts fee income. While our staff is doing a
fine job of retaining FirstBank NW's market share, the total market has
declined due to interest rate increases. The economy has remained firm in our
region and we expect to see originations pick up this spring on a seasonal
basis.
"Our continued emphasis on quality lending has kept asset quality high as
non-performing assets accounted for just 0.35% of total assets. Our loan loss
allowance is more than adequate at 251% of non-performing loans," he added.
"As expected, net income remains under some pressure from the investments
we've made in growth during the past year," Conklin said. "We've added
employees to maintain our high level of personalized service, staff the
Liberty Lake and Post Falls branches and broaden our product and service
offerings."
As a result, non-interest expense increased to $2.1 million in fiscal
2000's third quarter from $1.9 million in the like quarter a year ago.
Non-interest expense for the nine months was $6.2 million, compared to
$5.6 million in the like period last year. The efficiency ratio for the
quarter was 74.4% compared to 68.2% a year ago.
"Our growth initiatives are on track," added Conklin. "The full-service
Liberty Lake, Washington branch opened in mid-November and is on target with
our internal projections for deposit and loan growth. Furthermore, our
relationship with Salomon Smith Barney is exceeding original projections.
Based on the success of the Investment Center in downtown Lewiston, we plan to
add a Salomon Smith Barney Investment Center in our Liberty Lake branch during
this spring.
"Taking advantage of our abundant capital, we purchased about $9 million
in mortgage backed securities, which nearly doubled the total from a year
ago," Moxley noted. "This was an opportunity to use an alternate strategy for
growth of our assets by capitalizing on rate spreads." The bank's risk-based
capital was 14.73% of risk-weighted assets compared to 15.70% one year ago.
FirstBank NW's assets increased 20% to $244.3 million at December 31, 1999
from $203.6 million a year ago. As a result of stock repurchases and
investments for future growth, stockholders' equity was $25.8 million compared
to $28.1 million one year ago. The equity to asset ratio was 10.6% at
December 31, 1999 compared to 13.8% one year ago. Tangible book value
increased to $16.90 per share compared to $16.36 per share a year ago.
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank NW is based in Lewiston, Idaho at the northern end of Hell's Canyon.
With the opening of its Liberty Lake branch, FirstBank NW operates eight
branch locations in northern Idaho and along the Idaho/Washington border, in
addition to residential loan centers in Lewiston and Coeur d'Alene, Idaho.
Salomon Smith Barney recently placed investment centers in FirstBank NW's
downtown Lewiston and Coeur d'Alene branches. FirstBank NW is known as the
local community bank, offering its customers highly personalized service in
the many communities it serves. FBNW shares traded earlier today at $12.25 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 interest rate fluctuations, regional
economic conditions, competitive factors, and government and regulatory
actions that might cause actual results to differ materially from stated
expectations.
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except share and per share data)
Three Months Ended Nine Months Ended
December 31 December 31
1999 1998 1999 1998
Interest Income $4,286 $3,769 $12,493 $11,273
Interest Expense 2,136 1,852 6,078 5,471
Provision for Loan Losses 5 65 213 265
Net Interest Income
After Provision for
Loan Losses 2,144 1,852 6,202 5,537
Non-Interest Income 610 894 1,884 2,377
Non-Interest Expense 2,053 1,917 6,178 5,600
Income Tax Expense 194 285 585 824
Net Income $507 $544 $1,323 $1,490
Basic Earnings per Share $0.33 $0.31 $0.85 $0.84
Diluted Earnings per Share $0.32 $0.30 $0.81 $0.82
Weighted Average Shares
Outstanding- Basic 1,528,378 1,712,730 1,564,120 1,777,171
Weighted Average Shares
Outstanding- Diluted 1,591,858 1,795,194 1,629,801 1,812,500
Dec. 31, 1999 Mar. 31, 1999 Dec. 31, 1998
Total Assets $244,284 $206,745 $203,615
Loans Receivable, net $180,999 $165,617 $161,140
Mortgage-Backed Securities $21,689 $12,874 $11,136
Investment Securities $11,327 $7,236 $7,146
Deposits $145,636 $133,278 $128,736
FHLB Advances $70,427 $42,027 $43,802
Stockholders' Equity $25,767 $27,774 $28,092
Book Value per Share $16.90 $16.29 $16.36
Equity/ Total Assets 10.55% 13.43% 13.80%
Spread 3.94% 3.94% 3.87%
Tier 1 Capital to
Average Assets 10.14% 10.81% 11.00%
Risk-based Capital to
Risk-Weighted Assets 14.73% 16.20% 15.70%
Number of full-time
Equivalent Employees 118 102 94
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Nine Months Ended
December 31, December 31,
1999 1998 1999 1998
Return on Average Assets 0.86% 1.08% 0.79% 1.02%
Return on Average Equity 7.54% 7.55% 6.50% 6.72%
Average Equity/Average Assets 11.67% 14.30% 12.20% 15.19%
Average Equity/Average Loans 15.20% 18.38% 15.41% 19.28%
Efficiency Ratio
(operating expenses / revenue) 74.38% 68.22% 74.44% 68.46%
Operating Expenses/Average Assets 3.56% 3.80% 3.71% 3.86%
Net Interest Margin 4.18% 4.21% 4.27% 4.38%
Interest Earning Assets/
Interest Bearing Liabilities 106.27% 111.14% 108.54% 112.73%
LOANS
(unaudited) (in thousands except per share)
Nine Months Ended
Dec. 31, 1999 Dec. 31, 1998
LOAN ORIGINATIONS: $104,341 $136,779
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential 71,886 71,886
Construction 7,673 8,886
Agricultural 15,659 15,359
Commercial 24,822 22,075
Total real estate loans 120,040 118,206
Consumer and other loans:
Home equity 22,329 18,077
Agricultural operating 8,629 4,162
Commercial 26,731 25,637
Other consumer 7,609 8,834
Total consumer and other loans 65,298 56,710
Total Loans Receivable $185,338 $174,916
Nine Months Ended
1999 1998
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $1,361 $1,120
Provision for Loan Losses $213 $265
Charge offs (Net of Recoveries) $26 $29
Balance at End of Period $1,548 $1,356
Loan Loss Allowance /
Net Loans 0.86% 0.84%
Loan Loss Allowance /
Non-Performing Loans 250.89% 316.08%
NON-PERFORMING ASSETS: December 31,
1999 1998
Accruing Loans -
90 Days Past Due $84 $65
Non-accrual Loans $533 $364
Total Non-performing Loans $617 $429
Restructured Loans on Accrual $199 $--
Real Estate Owned (REO) $49 $299
Total Non-performing Assets $865 $728
Total Non-performing
Assets/Total Assets 0.35% 0.36%
Loan and REO Loss Allowance
as a % of Non-Performing Assets 178.96% 186.26%
SOURCE FirstBank NW 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
NW Corp., 208-746-9610
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