LEWISTON, Idaho, Feb. 26 /PRNewswire-FirstCall/ -- FirstBank Northwest, a
wholly owned banking subsidiary of FirstBank NW Corp. (Nasdaq: FBNW), today
announced its intent to open a Residential Real Estate Loan Production Office
(LPO) in Boise, Idaho. The LPO will be operated in conjunction with a limited
service retail branch. The branch application is pending. The targeted
opening date is April 1, 2002.
"Consistent with our long term objective to grow and expand our franchise
in growth markets, the move to Boise provides an outstanding opportunity,"
said Clyde E. Conklin, President and Chief Executive Officer. "Boise is the
largest and fastest growing market in Idaho. The real estate market recorded
$1.1 billion in mortgage recordings in 2001. Initially, a small portion of
market share translates to substantial impact to FirstBank Northwest.
Established professionals currently active in the Boise market will team with
FirstBank's existing professional real estate staff to deliver a very
competitive array of residential real estate loan products, including
construction loans. The LPO strategy was successfully utilized when FirstBank
Northwest entered the Coeur d'Alene market. We have established policies,
procedures and administration in place to effectively manage operations in the
Boise market," said Conklin.
As of December 31, 2001, FirstBank Northwest is a $297 million bank with
headquarters in Lewiston, Idaho. Residential Real Estate Lending Centers are
located in Lewiston and Coeur d'Alene, Idaho. "We are among the leaders in
market share in both areas," noted Conklin. Fiscal year 2002 residential loan
production from both Centers was $90 million through December 31, 2001.
"Projected initial start-up costs and customer migration will modestly
reduce earnings in the first half of fiscal year 2003, and begin contributing
positively to net income in the second half of fiscal year 2003," said Larry
K. Moxley, Executive Vice President and Chief Financial Officer. "Long term
profitability is expected, however, variables and unknowns regarding
additional staffing and production make it difficult to predict the level of
long term earnings accretion. It is also FirstBank's policy not to produce
forward earnings estimates," continued Moxley.
Conklin concluded by stating "the Boise, Idaho LPO opportunity meets
FirstBank's strategic long term growth and expansion objectives, is a
manageable endeavor, and will provide a sound foundation for future expansion
in that market. FirstBank's strategic plan specifically addresses growth
opportunities in the Spokane, Washington and Coeur d'Alene and Post Falls,
Idaho markets. We currently have offices in Liberty Lake, Washington and
Coeur d'Alene and Post Falls, Idaho, which provide an excellent platform to
leverage into LPO's and branches in those markets. FirstBank will continue to
identify growth opportunities in an effort to continue to deliver solid
shareholder value through earnings growth."
FirstBank Northwest currently operates eight branch locations in northern
Idaho and eastern Washington along the Idaho/Washington border. FirstBank
Northwest 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 $18.00 per share, or 88% 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.
SOURCE FirstBank Northwest
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Related links:
http://www.fbnw.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/124037.html
CONTACT:
Larry K. Moxley, Exec. VP & CFO of FirstBank
Northwest, +1-208-746-9610
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