Highlights for the Quarter Ended December 31, 2005:
- Diluted EPS Growth: increased 38.5% compared to the quarter ended
December 31, 2004, with net income up 41.9% compared to the quarter
ended December 31, 2004
- Net Loans Receivable Growth: increased 15.2% since December 31, 2004
- Deposit Growth: increased 12.9% since December 31, 2004
- Net Interest Margin: 4.63% vs. 4.40% for the quarters ended
December 31, 2005 and 2004, respectively
- Return on Average Tangible Equity: 15.0% vs. 11.9% for the quarters
ended December 31, 2005 and 2004, respectively
CLARKSTON, Wash., Feb. 10 /PRNewswire-FirstCall/ -- FirstBank NW Corp.
(the Company) (Nasdaq: FBNW) today announced another quarter of strong
financial results as a result of the continued successful execution of its
business plan and risk management policies, and the continued economic
strength in its market areas. For the quarter ended December 31, 2005, the
third quarter of its fiscal year, diluted earnings per share increased 38.5%
to $0.36 compared to $0.26 for the same quarter a year ago. Net income for
the quarter increased 41.9% to $2.2 million compared to $1.5 million for the
same quarter a year ago.
For the quarter ended December 31, 2005, the Company's return on average
tangible equity was 15.0% compared to 11.9% for the quarter ended December 31,
2004. Return on average tangible equity for the nine months ended December
31, 2005 was 14.9% compared to 12.6% for the same period a year ago. The net
interest margin was higher for the quarter ended December 31, 2005, at 4.63%
compared to 4.40% in the quarter ended December 31, 2004.
On January 4, 2006, FirstBank NW Corp. announced that its Board of
Directors declared a two-for-one stock split in the form of a 100% per share
stock dividend on the Company's outstanding common stock. The stock dividend
was paid on February 9, 2006. Each shareholder of record as of the close of
business on January 26, 2006 received one additional share for every share
owned on that date. The outstanding shares, weighted average shares
outstanding, and earnings per share have been adjusted to reflect this
two-for-one stock split in the form of a 100% per share stock dividend
announced on January 4, 2006.
LOAN GROWTH AND CREDIT QUALITY:
Net loans receivable increased 15.2% to $611.1 million at December 31,
2005 from $530.4 million at December 31, 2004. Net loan growth for the nine
months ended December 31, 2005 was $49.0 million, or 11.6% on an annualized
basis.
"While we continue to have good loan demand throughout our market area,
fiscal year to date loan growth was primarily driven by construction lending
in the Boise, Idaho market, and commercial real estate lending in the Boise
and Coeur d'Alene, Idaho and Spokane, Washington markets," said Clyde E.
Conklin, President and Chief Executive Officer.
The credit quality of the Company's loan portfolio remained strong with
total non-performing assets of $2.5 million, or 0.30% of total assets at
December 31, 2005, compared to $2.3 million, or 0.30% of total assets at
December 31, 2004. This compares with non-performing assets at fiscal year
end March 31, 2005 of $2.8 million, or 0.35% of total assets. Net loan charge
offs to average outstanding loans for the nine months ended December 31, 2005
were 0.05% compared to 0.09% for the nine months ended December 31, 2004.
The reserve for losses on loans and loan commitments at December 31, 2005
increased to 1.39% of net loans from 1.30% at December 31, 2004. The
provision for loan losses was $422,000 for the quarter ended December 31,
2005; a decrease from $470,000 for the quarter ended December 31, 2004; and a
decrease from $488,000 for the quarter ended March 31, 2005. The provision
for loan losses reflects the classified asset changes within the portfolio
during the quarter and the resulting allowance for loan and lease losses
adjustment, which is determined through the use of a formula by management.
Management believes the reserve is at an appropriate level considering the
credit quality of all loans, loan loss histories, and prevailing economic
conditions.
FUNDING:
Deposit balances as of December 31, 2005 increased 12.9% to $553.5 million
from $490.1 million at December 31, 2004. Deposit growth for the nine months
ended December 31, 2005 was $34.8 million, or 8.9% on an annualized basis.
At December 31, 2005, total branch deposits were $508.8 million,
consisting of $303.4 million, or 59.6% in core deposits and $205.4 million, or
40.4% in time deposits compared with the comparable period a year ago of
$460.4 million in total branch deposits, which consisted of $285.5 million, or
62.0% in core deposits and $174.9 million, or 38.0% in time deposits.
Brokered deposits at December 31, 2005 totaled $44.7 million as compared to
$29.7 million a year ago, an increase of $15.0 million. Advances from the
Federal Home Loan Bank of Seattle (FHLB) and other borrowings at December 31,
2005 totaled $180.0 million as compared to $186.6 million a year ago, a
decrease of $6.6 million. "Branch deposit growth with an emphasis on core
deposit growth remains essential to long term funding and earnings," noted
Conklin.
NET INTEREST MARGIN AND INTEREST RATE RISK:
The Company's net interest margin was 4.63% for the quarter ended
December 31, 2005 compared to 4.40% for the quarter ended December 31, 2004.
The flattening of the yield curve continues to pressure the net interest
margin, however, the interest rate sensitivity of the Company's assets has
helped to offset the pressure on the net interest margin from increases in the
costs of deposits and borrowed funds. Yields on earning assets increased by
15 basis points during the current quarter to 7.26% compared to 7.11% for the
quarter ended September 30, 2005. Meanwhile, the average rates paid on total
deposits and borrowed funds increased 16 basis points during the quarter ended
December 31, 2005 to 2.68% compared to 2.52% for the quarter ended September
30, 2005. Attainment of branch deposit growth objectives as opposed to
continued reliance on high cost of FHLB borrowings is essential to maintenance
of the net interest margin.
NON-INTEREST INCOME AND EXPENSE:
Non-interest income was $1.8 million for the quarter ended December 31,
2005, an increase of $363,000 from $1.4 million for the comparable period one
year ago. For the nine months ended December 31, 2005, non-interest income
increased $640,000 to $5.2 million from $4.6 million for the nine months ended
December 31, 2004. Non-interest income is driven by gain on sales of loans
and transaction account fees.
Non-interest expense for the quarter ended December 31, 2005 was
$6.6 million, an increase of 11.1% from $5.9 million for the quarter ended
December 31, 2004. For the nine months ended December 31, 2005, non-interest
expense increased $1.6 million to $18.9 million from $17.3 million for the
comparable period in 2004. Non-interest expense to average assets increased
to 3.18% for the three months ended December 31, 2005 from 3.15% one year ago,
and is down to 3.04% for the nine months ended December 31, 2005 compared to
3.16% for the same nine month period last year. The Company's efficiency
ratio of 62.04% for the three months ended December 31, 2005 improved from
67.05% one year ago. Non-interest expenses are expected to increase as the
Company invests in new branches, additional staffing, and complies with
increased regulatory and audit requirements. Conklin noted, "the importance
of disciplined review of resources and expenditures in relation to
profitability contribution is essential on an ongoing basis."
CAPITAL:
At December 31, 2005, the Bank's Tier 1 capital (leverage ratio based on
average assets) was $58.3 million, or 7.3%, and total risk capital (to
risk-weighted assets) was $68.8 million, or 11.6%. Risk capital includes
$3.0 million in subordinated debt by the Company's subsidiary, FirstBank
Northwest, to US Bank.
BUSINESS STRATEGY:
FirstBank NW Corp. (headquartered in Clarkston, Washington) is the holding
company for FirstBank Northwest, a Washington state chartered savings bank
founded in 1920, and has a track record of consistent above-average growth and
improving profitability, operating in the rural markets of eastern Oregon,
eastern Washington and central Idaho, in addition to the larger and growing
markets of Boise and Coeur d'Alene, Idaho and Spokane, Washington. FirstBank
Northwest is focused on each community served, striving to deliver competitive
financial products and services through exceptional customer service
standards, local expertise and leadership. FirstBank Northwest operates 20
branch locations in Idaho, eastern Washington and eastern Oregon, in addition
to residential loan centers in Lewiston, Coeur d'Alene, Boise and Nampa,
Idaho, Spokane, Washington, and Baker City, Oregon. FirstBank Northwest is
known as the local community bank, offering its customers highly personalized
service in the many communities it serves.
FORWARD LOOKING STATEMENTS:
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,
competitive conditions between banks and non-bank financial service providers,
regulatory changes, costs of implementing additional securities requirements
and requirements of the Sarbanes-Oxley Act of 2002 and other risks detailed
in the Company's reports filed with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the fiscal year ended March 31,
2005.
FIRSTBANK NW CORP
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except share and per share data)
Three Months Ended Nine Months Ended
December 31, December 31,
2005 2004 2005 2004
Interest Income $13,287 $10,369 $38,425 $29,791
Interest Expense 4,963 3,366 14,056 9,541
Provision for Loan Losses 422 470 1,562 1,040
Net Interest Income After
Provision for
Loan Losses 7,902 6,533 22,807 19,210
Non-Interest Income
Gain on Sale of Loans (1) 543 260 1,329 941
Service Fees and Charges 1,191 1,130 3,674 3,494
Commission and Other 60 41 214 142
Total Non-Interest Income 1,794 1,431 5,217 4,577
Non-Interest Expense
Compensation and Related
Expenses 3,757 3,680 11,125 10,522
Occupancy 720 668 2,189 2,127
Other 2,075 1,548 5,624 4,645
Total Non-Interest Expense 6,552 5,896 18,938 17,294
Income Tax Expense 978 542 2,818 1,789
Net Income $2,166 $1,526 $6,268 $4,704
Basic Earnings
per Share (6) $0.37 $0.26 $1.07 $0.81
Diluted Earnings
per Share (6) $0.36 $0.26 $1.04 $0.78
Weighted Average Shares
Outstanding- Basic (6) 5,877,524 5,809,438 5,867,469 5,776,562
Weighted Average Shares
Outstanding- Diluted (6) 6,016,034 5,968,888 5,999,569 5,994,290
Actual Shares Issued (6) 6,014,494 5,978,524 6,014,494 5,978,524
FINANCIAL STATISTICS
(ratios annualized)
At December 31, At December 31,
2005 2004
Total Assets $824,859 $769,570
Cash and Cash Equivalents $23,661 $40,378
Loans Receivable, net $611,051 $530,447
Loans Held for Sale $5,712 $3,377
Mortgage-Backed Securities $53,718 $64,988
Investment Securities $48,459 $48,517
Equity Securities, at cost $12,789 $12,810
Deposits $553,461 $490,092
FHLB Advances & Other Borrowings $179,992 $186,577
Stockholders' Equity $77,291 $71,418
Tangible Book Value per Share (2) (6) $9.90 $8.85
Tangible Equity/ Total Tangible
Assets 7.23% 6.89%
Number of full-time equivalent
Employees (3) 274 270
Three Months Ended Nine Months Ended
December 31, December 31,
2005 2004 2005 2004
Return on Average Assets 1.05% 0.81% 1.01% 0.86%
Return on Average Tangible Equity 14.96% 11.91% 14.91% 12.55%
Return on Average Equity 11.24% 8.57% 11.09% 8.90%
Average Equity/Average Assets 9.34% 9.49% 9.09% 9.66%
Efficiency Ratio (4) 62.04% 67.05% 61.32% 66.50%
Non-Interest Expenses / Average
Assets 3.18% 3.15% 3.04% 3.16%
Net Interest Margin (5) 4.63% 4.40% 4.56% 4.38%
LOANS
(unaudited) (in thousands except share and per share data)
At December 31, 2005 At December 31, 2004
LOAN PORTFOLIO ANALYSIS: Amount Percent Amount Percent
Real Estate Loans:
Residential $117,800 18.94 % $116,026 21.50 %
Construction 100,101 16.09 58,518 10.85
Agricultural 19,301 3.10 19,453 3.61
Commercial 190,584 30.64 155,340 28.79
Total Real Estate Loans 427,786 68.77 349,337 64.75
Consumer and Other Loans:
Home Equity 41,008 6.59 36,235 6.71
Agricultural Operating 25,615 4.12 26,039 4.82
Commercial 86,973 13.98 87,943 16.30
Other Consumer 40,689 6.54 40,027 7.42
Total Consumer and Other
Loans 194,285 31.23 190,244 35.25
Total Loans Receivable $622,071 100.00 % $539,581 100.00 %
ALLOWANCE FOR LOAN LOSSES Nine Months Ended Nine Months Ended
December 31, 2005 December 31, 2004
Balance at Beginning of Period $7,254 $6,314
Provision for Loan Losses 1,562 1,040
Charge Offs (Net of Recoveries) (297) (437)
Balance at End of Period $8,519 $6,917
Loan Loss Allowance / Net Loans 1.39% 1.30%
Loan Loss Allowance / Non-Performing
Loans 549.61% 552.92%
NON-PERFORMING ASSETS
At December 31, At December 31,
2005 2004
Accruing Loans - 90 Days Past Due $0 $0
Non-accrual Loans 1,550 1,251
Total Non-Performing Loans 1,550 1,251
Restructured Loans on Accrual 895 555
Real Estate Owned (REO) 0 410
Repossessed Assets 35 60
Total Non-Performing Assets $2,480 $2,276
Total Non-Performing Assets/Total
Assets 0.30% 0.30%
Loan and REO Loss Allowance as a
Percentage
of Non-Performing Assets 343.51% 303.91%
AVERAGE BALANCES Nine Months Ended Nine Months Ended
December 31, 2005 December 31, 2004
Total Average Interest Earning Assets $750,005 $652,741
Total Average Assets 829,660 729,141
Average Deposits and Other Borrowed
Funds 746,066 651,525
Average Total Tangible Equity 56,047 49,961
(1) Gain on sale of loans includes (recovery) impairment of mortgage
servicing rights of ($69) and ($44) for the three months
ended December 31, 2005 and 2004, respectively. Gain on sale
of loans includes (recovery) impairment of mortgage servicing
rights of ($44) and ($67) for the nine months ended December
31, 2005 and 2004, respectively.
(2) Calculation excludes unallocated shares in the employee stock
ownership plan (ESOP) December 31, 2005 -- 129,052 shares
and December 31, 2004 -- 145,764 shares.
(3) Number of full-time equivalent employees is the quarterly average.
(4) Calculation is non-interest expense divided by tax equivalent
non-interest income and tax equivalent net interest income.
(5) Calcualation is tax equivalent net interest income divided by total
interest-earning assets.
(6) The outstanding shares, weighted average shares outstanding, and
earnings per share have been adjusted to reflect the two-for-one
stock split in the form of a 100% per share stock dividend
announced on January 4, 2006.
SOURCE FirstBank NW Corp.
 back to top
Related links:
http://www.fbnw.com
CONTACT:
Larry K. Moxley of FirstBank NW Corp.,
+1-509-295-5100
|
