CLARKSTON, Wash., Jan. 25 /PRNewswire-FirstCall/ -- FirstBank NW Corp.
(Nasdaq: FBNW) ("Company"), the holding company for FirstBank Northwest
("Bank"), today reported net income of $1.5 million, or $0.51 per diluted
share, in its third fiscal quarter ended December 31, 2004. This compares to
net income of $1.3 million, or $0.52 per diluted share, in the comparable
quarter a year ago.
The Company also announced that its Board of Directors has declared a
regular quarterly cash dividend of $0.17 per common share. The dividend will
be paid on February 17, 2005 to shareholders of record as of the close of
business on February 3, 2005. This is the Company's 30th regular quarterly
cash dividend since it became a publicly traded company in July 1997.
"The increase in net income is attributable to loan growth during the past
year with net loans increasing to $533.8 million as of December 31, 2004
compared to $459.5 million at December 31, 2003, and an improved net interest
margin of 4.3% for the three months ended December 31, 2004," said Clyde E.
Conklin, President and Chief Executive Officer. "The Company's net income also
was affected by reserve allocations driven by new loan growth," noted Larry K.
Moxley, Executive Vice President and Chief Financial Officer. The provision
for loan losses for the quarter ended December 31, 2004 was $470,000, compared
to $162,000 in the comparable quarter a year ago. The increase in the
provision for loan losses is attributable to loan growth during the quarter.
Non-interest income improved to $1.4 million for the third fiscal quarter,
compared to $1.2 million in the comparable quarter a year ago. The increases
in service charges and fee income of $260,000 offset decreases in other
non-interest income.
Non-interest expense, or operating expense increased $1.2 million to
$5.9 million for the quarter ended December 31, 2004, compared to $4.7 million
for the comparable quarter a year ago, which includes a full quarter of
expenses versus the partial quarter last year because of the acquisition of
Oregon Trail Financial Corp. ("Oregon Trail") and its subsidiary, Pioneer
Bank, A Federal Savings Bank ("Pioneer Bank"). Non-recurring core processing
conversion expense and non-recurring employment termination expense reduced
earnings per share by an estimated $0.06 per share. FirstBank's efficiency
ratio was 68.3% in its third fiscal quarter of 2004, compared to 71.3% for the
comparable quarter a year ago. "Strategic growth initiatives require
continued investment in human resources, facilities, equipment, technology,
marketing, and other miscellaneous expense," stated Conkin. "We intend to
prioritize our investments by reviewing the investment's potential for
profitability and determining if the investment achieves our shareholder value
strategies," noted Moxley. "Fully integrated core processing systems, network
systems and operating policies and procedures present the opportunity to focus
on efficiency initiatives and profitability analysis of our products and
services," Moxley continued.
Total assets were $769.6 million at December 31, 2004, an increase of
$84.3 million, or 12.3%, from total assets of $685.3 million at
December 31, 2003. Total assets at December 31, 2004 increased $69.3 million,
or 9.9%, from total assets of $700.2 million at March 31, 2004. Total loans
receivable for the same period grew $69.5 million, or 15.0% from
$464.4 million at March 31, 2004 to $533.8 million at December 31, 2004.
"Strong loan growth has been realized primarily in commercial real estate and
construction lending, which is consistent with our commercial banking
initiative," stated Conklin. "To a moderate extent, we have also realized
growth in commercial and industrial, residential real estate, home equity, and
other consumer loans. We have achieved our asset growth target through new
loan originations."
Total deposits increased $29.1 million, or 6.1%, to $503.6 million at
December 31, 2004 compared with $474.5 million at December 31, 2003. Other
funding for the quarter ended December 31, 2004 included Federal Home Loan
Bank and other borrowings totaling $186.6 million compared to $134.1 million
for the quarter ended December 31, 2003, an increase of $52.5 million, or
39.2%.
The allowance for loan and lease losses increased $320,000, or 4.9%, to
$6.9 million for the nine months ended December 31, 2004 from $6.6 million for
the comparable period one year ago. Total reserves for the nine months ended
December 31, 2004 represent 1.30% of net loans and 552.9% of non-performing
loans. "It is essential that our allowance adequately reflect the credit risk
in the portfolio and the non-performing assets identified, therefore we
continue to add to our reserves," said Moxley. "Charge-offs, net of
recoveries, for the quarter totaled $147,000 compared to $45,000 for the
comparable quarter a year ago. Asset quality remains stable." Total
non-performing assets at December 31, 2004 were $2.3 million, or 0.30% of
total assets compared with $3.7 million, or 0.52% of total assets at
March 31, 2004. "We continue to focus on credit risk on a quarterly basis
through the asset review committee and on an on-going basis through executive
management loan committee and credit administration," said Conklin.
Conklin concluded by stating, "The conversion of the core processing
systems was completed in December, which was necessary after the acquisition
of Oregon Trail and Pioneer Bank on October 31, 2003. This was a substantial
acquisition that took us from $340 million in total assets to $770 million to
date, with branches in three states. Virtually, ever area of the Bank's
operation was impacted. The Company has been strengthened in this process and
is in an improved position to effectively compete and attain our shareholder
value strategies."
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank Northwest is based in Clarkston, Washington. FirstBank Northwest
operates 20 branch locations in northern Idaho along the Idaho/Washington
border and in eastern Oregon, in addition to residential loan centers in
Lewiston, Coeur d'Alene, Boise and Nampa, Idaho, Spokane, Washington, and
Baker City, Oregon. Salomon Smith Barney has investment centers in the Coeur
d'Alene, Idaho, Clarkston and Liberty Lake, Washington branches, and the Baker
City, LaGrande, Pendleton and Ontario, Oregon branches. FirstBank Northwest
is known as the local community bank, offering its customers highly
personalized service in the many communities it serves.
Certain matters in this News Release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements may relate to, among others,
expectations of the business environment in which the Company operates,
projections of future performance, including operating efficiencies, perceived
opportunities in the market, potential future credit experience and statements
regarding the Company's mission and vision. These forward-looking statements
are based upon current management expectations, and may, therefore, involve
risks and uncertainties. The Company's actual results, performance, and
achievements may differ materially from those suggested, expressed or implied
by forward-looking statements due to a wide range of factors including, but
not limited to, the general business environment, interest rates, the real
estate market in Washington, Idaho and Oregon, the demand for mortgage loans,
The Company's ability to successfully integrate the business of Oregon Trail,
the realization of expected cost savings or accretion to earnings because of
the acquisition of Oregon Trail, competitive conditions between banks and
non-bank financial service providers, regulatory changes, and other risks
detailed in the Company's reports filed with the Securities and Exchange
Commission, including its Annual Report on From 10-KSB for the fiscal year
ended March 31, 2004.
FIRSTBANK NW CORP
FINANCIAL HIGHLIGHTS
(unaudited)(in thousands except share and per share data)
Three Months Ended Nine Months Ended
December 31, December 31,
2004 2003 2004 2003
Interest Income $10,369 $8,011 $29,791 $18,116
Interest Expense 3,366 2,795 9,541 6,866
Provision for Loan Losses 470 162 1,040 418
Net Interest Income
After Provision for
Loan Losses 6,533 5,054 19,210 10,832
Non-Interest Income
Gain on Sale of Loans 260 286 942 1,656
Service Fees and Charges 1,130 870 3,494 1,982
Commission and Other 41 70 141 136
Total Non-Interest Income 1,431 1,226 4,577 3,774
Non-Interest Expenses
Compensation and
Related Expenses 3,680 2,854 10,522 6,729
Occupancy 668 591 2,128 1,289
Other 1,548 1,278 4,644 2,997
Total Non-Interest Expenses 5,896 4,723 17,294 11,015
Income Tax Expense 542 276 1,790 837
Net Income $1,526 $1,281 $4,703 $2,754
Basic Earnings per Share $0.53 $0.56 $1.63 $1.70
Diluted Earnings per Share $0.51 $0.52 $1.57 $1.59
Weighted Average Shares
Outstanding -- Basic 2,904,719 2,285,027 2,888,281 1,621,314
Weighted Average Shares
Outstanding -- Diluted 2,984,444 2,483,620 2,997,145 1,731,498
Actual Shares Issued 2,989,262 2,862,331 2,989,262 2,862,331
December 31, March 31, December 31,
2004 2004 2003
Total Assets $769,570 $700,232 $685,267
Cash and Cash Equivalents $40,378 $38,397 $23,464
Loans Receivable, net $533,823 $464,368 $459,540
Mortgage-Backed Securities $64,988 $77,027 $81,344
Investment Securities $48,517 $38,787 $38,506
Stock in FHLB, at cost $12,810 $12,506 $12,224
Deposits $503,559 $491,035 $474,480
FHLB Advances & Other Borrowings $186,577 $132,056 $134,056
Stockholders' Equity $71,418 $69,332 $68,910
Tangible Book Value per Share (1) $17.71 $17.33 $17.94
FASB 115 Adjustment after Taxes $558 $1,268 $1,166
Tangible Equity/
Total Tangible Assets 6.89% 7.57% 7.50%
Number of full-time
equivalent Employees 270 247 248
(1) 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):
12/04 -- 72,883 shares, 3/04 -- 79,149 shares, 12/03 -- 81,238 shares.
FINANCIAL STATISTICS
(ratios annualized) Three Months Fiscal Year Nine Months
Ended Ended Ended
December 31, March 31, December 31,
2004 2003 2004 2004 2003
Return on Average Assets 0.81% 0.90% 0.90% 0.86% 0.88%
Return on Average
Tangible Equity 11.91% 11.46% 11.17% 12.55% 10.43%
Average Tangible Equity/
Average Tangible Assets 7.02% 7.98% 8.19% 6.66% 8.56%
Average Equity/
Average Assets 9.49% 9.95% 9.17% 9.66% 9.53%
Average Tangible Equity
/Average Loans 9.96% 11.48% 11.37% 10.03% 12.10%
Efficiency Ratio (2) 68.30% 71.29% 70.44% 67.87% 71.26%
Non-Interest Expenses
/Average Assets 3.15% 3.30% 3.43% 3.16% 3.53%
Net Interest Margin (3) 4.34% 4.09% 4.17% 4.29% 4.07%
Average Interest Earning Assets/
Average Deposits and Other
Borrowed Funds 112.12% 113.61% 102.09% 112.65% 114.68%
Nine Months Fiscal Year Nine Months
Ended Ended Ended
December 31, March 31, December 31,
LOANS 2004 2004 2003
(unaudited)(in thousands except share and per share data)
LOAN ORIGINATIONS (4):
Residential loan centers $203,526 $244,456 $194,594
Consumer loan centers 35,903 16,364 9,012
Agricultural loan centers 8,005 8,048 20,875
Commercial loan centers 120,750 86,929 101,678
Total Loan Originations $368,184 $355,797 $326,159
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $116,028 $112,312 $112,556
Construction (5) 58,518 68,236 64,146
Agricultural 19,453 18,568 20,246
Commercial 155,303 122,132 122,017
Total real estate loans 349,302 321,248 318,965
Consumer and other loans:
Home equity 36,235 25,599 19,667
Agricultural operating 26,039 24,876 31,031
Commercial 87,943 75,878 66,965
Other consumer 40,027 43,425 51,252
Total consumer and other loans 190,244 169,778 168,915
Loans held for sale --
residential real estate 3,377 5,253 6,890
Total Loans Receivable $542,923 $496,279 $494,770
Nine Months Fiscal Year Nine Months
Ended Ended Ended
ALLOWANCE FOR LOAN LOSSES: December 31, March 31, December 31,
2004 2004 2003
Balance at Beginning of Period $6,314 $3,414 $3,414
Purchased 0 2,863 2,863
Provision for Loan Losses 1,039 395 418
Charge Offs (Net of Recoveries) (436) (358) (98)
Balance at End of Period $6,917 $6,314 $6,597
Loan Loss Allowance/
Net Loans 1.30% 1.36% 1.44%
Loan Loss Allowance/
Non-Performing Loans 552.92% 199.37% 452.47%
(2) Calculation is non-interest expense divided by tax equivalent
non-interest income and net interest income.
(3) Calculation is tax equivalent net interest income divided by total
interest-earning assets.
(4) Loan originations are based upon new production.
(5) As of December 31, 2004, these loans are reported net of loans in
progress.
NON-PERFORMING ASSETS:
Nine Months Fiscal Year Nine Months
Ended Ended Ended
December 31, March 31, December 31,
2004 2004 2003
Accruing Loans -- 90 Days Past Due $0 $0 $0
Non-accrual Loans 1,251 2,900 1,458
Total Non-performing Loans 1,251 2,900 1,458
Restructured Loans on Accrual 554 152 228
Real Estate Owned (REO) 410 552 883
Repossessed Assets 61 52 28
Total Non-performing Assets $2,276 $3,656 $2,597
Total Non-performing Assets/
Total Assets 0.30% 0.52% 0.38%
Loan and REO Loss Allowance
as a % of Non-Performing Assets 303.91% 160.95% 254.02%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Three Months Fiscal Year Nine Months
Ended Ended Ended
December 31, Year Ended December 31,
2004 2003 March 31, 2004 2004 2003
Average Interest Earning Assets:
Average Loans Receivable:
Average Mortgage
Loans Receivable $116,264 $91,482 $74,416 $116,354 $62,030
Average Commercial
Loans Receivable 227,170 163,955 150,557 213,192 136,578
Average Construction
Loans Receivable 53,452 35,980 36,356 50,461 34,359
Average Consumer
Loans Receivable 75,156 54,210 43,063 73,741 34,366
Average Agricultural
Loans Receivable 46,667 43,436 37,547 47,401 35,046
Average Unearned Loan
Fees and Discounts,
Allowance for Loan
Losses, and Other (8,787) (7,187) (6,350) (8,395) (5,598)
Total Average Loans
Receivable, net 509,922 381,876 335,589 492,754 296,781
Average Loans
Held for Sale 4,811 7,345 7,584 5,334 8,185
Average Mortgage
-backed Securities 66,831 46,500 35,869 70,428 21,374
Average Investment
Securities 48,876 26,671 24,840 45,764 20,321
Average Other
Earning Assets 38,357 54,676 36,000 38,461 32,486
Total Average
Interest Earning
Assets 668,797 517,068 439,882 652,741 379,147
Average Non-Interest
Earning Assets 81,031 55,311 44,684 76,400 36,783
Total Average Assets $749,828 $572,379 $484,566 $729,141 $415,930
Average Interest
Bearing Liabilities:
Average Passbook,
NOW, and Money
Market Accounts $239,724 $174,430 $137,025 $231,657 $107,912
Average Certificates
of Deposits 203,696 172,611 149,626 200,051 132,855
Average Advances
from FHLB and Other 153,079 108,067 101,106 147,729 89,842
Total Average Interest
Bearing Liabilities 596,499 455,108 387,757 579,437 330,609
Average Non-Interest
Bearing Deposits 74,926 52,399 43,107 72,088 39,422
Average Deposits
and Other
Borrowed Funds 671,425 507,507 430,864 651,525 370,031
Average Non-Interest
Bearing Liabilities 7,207 7,946 6,638 7,179 6,253
Total Average
Liabilities 678,632 515,453 437,502 658,704 376,284
Total Average Equity 71,196 56,926 47,064 70,437 39,646
Total Average Liabilities
and Equity $749,828 $572,379 $484,566 $729,141 $415,930
Total Tangible
Average Equity $51,259 $44,701 $39,030 $49,961 $35,221
Interest Rate Yield
on Earning Assets 6.35% 6.36% 6.41% 6.24% 6.53%
Interest Rate Expense on
Deposits and Other
Borrowed Funds 2.01% 2.64% 2.31% 1.95% 2.85%
Interest Rate Spread 4.34% 3.72% 4.10% 4.29% 3.68%
Net Interest Margin 4.33% 4.09% 4.17% 4.29% 4.07%
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., +1-509-295-5100
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