LEWISTON, Idaho, April 22 /PRNewswire/ -- FirstBank Corp. (Nasdaq: FBNW),
the holding company for FirstBank Northwest, today reported strong performance
across the board as net income rose 19%, assets gained 13%, net loans rose 14%
and deposits increased 16% in fiscal 1999.
Fiscal 1999 net income advanced 19% to $2.0 million or $1.13 per share,
diluted, for the year ended March 31, 1999, compared to net income of
$1.7 million, or $.93 per share, pro forma, diluted, in fiscal 1998. Fewer
shares were outstanding in fiscal 1999 due to the company's program of stock
repurchases.
Net income was $543,000 or $.31 per share, diluted, for the fourth fiscal
quarter, ended March 31, 1999, compared to $541,000 or $.30 per share,
diluted, in the year-ago period. An 11% increase in fourth quarter net
interest income after loan loss provision was outpaced by a 25% increase in
non-interest expense as FirstBank opened a new office, added new services,
purchased and installed new telephone lines, and is in the process of
developing an in-house computer system to improve both customer service and
bank efficiency.
"Growth is proceeding on plan, as we deploy capital from our July 1997
public offering," said Clyde E. Conklin, Chief Executive Officer. "Total
consumer, agriculture and commercial loans gained 50%, demonstrating that our
emphasis on higher-margined lending lines is working. Our $179.8 million
total loans receivable were 17% higher at March 31, 1999 than a year ago."
Net interest income after loan loss provision rose 11% to $1.9 million in
the fourth quarter from $1.7 million in the year ago quarter, and 13% to
$7.5 million for all of fiscal 1999 from $6.6 million for fiscal 1998. Net
interest margin was 4.29% for the fourth quarter, compared to net margin of
4.26% in the year ago period. For all fiscal 1999, net interest margin was
4.33% compared to 4.38% in fiscal 1998.
"Lending experience remains strong, as total loans receivable rose 17% to
$179.8 million," said Larry K. Moxley, Executive Vice President and Chief
Financial Officer. "In line with our strategic plan, residential real estate
loans declined 5% to $83.7 million in fiscal 1999, while commercial,
agriculture and consumer loans rose briskly."
Within the loan portfolio, commercial real estate loans nearly doubled to
$23.5 million in fiscal 1999 while commercial non real estate loans rose
68% to $28.0 million from $16.6 million last year, and less than $2 million
two years ago. Agricultural real estate lending rose 11% to $16.3 million for
the year and agricultural operating loans jumped 89% to $4.4 million.
Construction loans rose 17% to $9.3 million and other consumer loans increased
47% to $8.7 million.
"Loan quality improved even as loan volume grew," Moxley noted. Total
nonperforming assets were $1.1 million or 0.54% of total assets at March 31,
1999, compared to $1.3 million or 0.73% of total assets one year ago. The
loan loss allowance equaled 0.82% of total loans and 216.38% of non-performing
loans.
"Market share within the agricultural lending community has shifted due to
the acquisitions of other banks that were the traditional agricultural
lenders. With our deep agricultural experience, FirstBank has taken advantage
of this shifting," Conklin noted. "We maintain conservative loan underwriting
standards on all new and existing accounts. The recently-completed season to
renew production loans and repay term loans resulted in minimal past due loans
and no classified loans. This fact alone provides evidence of the strength in
FirstBank's agricultural loan portfolio.
"Recent supply reports and an anticipated pick-up in exports are providing
some limited optimism in the wheat market," he added. "Current wheat prices
are somewhat higher than the prices used in loan analysis projections.
However, commodity prices must improve over the long term in order for
agricultural producers to attain a sustainable profit level." The Palouse
region along the Idaho/Washington border is one of the world's premier wheat
growing areas.
Residential real estate loans account for approximately 47% of FirstBank's
total loan portfolio, agricultural real estate and operating loans account for
more than 11%, construction loans account for more than 5%, commercial loans
account for nearly 29%, and consumer/home equity loans account for 8% of total
loans receivable.
FirstBank originated $28.8 million of loans during the fourth quarter
compared to $37 million in last year's unusually strong fourth quarter. Loan
originations increased 18% to $165.6 million during fiscal 1999 compared to
$140.3 million last year. FirstBank also services a portfolio of loans for
other investors that totaled $150.5 million at March 31, 1999 and generated
approximately $360,000 in fees to non-interest income for the year.
Non-interest income was $657,000 in the quarter just ended compared to
$648,000 one year ago; for fiscal 1999 non-interest income rose 33% to
$3.0 million from $2.3 million in FY98.
Reflecting the costs of long-term growth, non-interest expense rose 25% to
$1.9 million in the fourth quarter of fiscal 1999, compared to $1.5 million in
the year ago period; for the full year, non-interest expense rose 21% to
$7.5 million from $6.2 million. FirstBank's efficiency ratio was
69.9% for fiscal 1999 compared to 68.5% a year ago.
"Our Y2K testing is proceeding as planned. All major vendors have been
checked and performed satisfactorily," Moxley said. "We look forward to
providing customers with the best possible service in the 21st Century."
On Monday, FirstBank announced its seventh consecutive regular quarterly
cash dividend since converting to the stock form of ownership in July 1997.
The $.09 per share dividend is payable May 20 to shareholders of record May 6.
On April 7, FirstBank announced that Salomon Smith Barney Inc. -- one of
the securities industries' best known and most respected names -- is opening
an Investment Center in FirstBank's downtown Lewiston bank branch. The firm
also leases space in FirstBank's Coeur d'Alene office. FirstBank expects to
open Investment Centers in other branches in the future. Salomon Smith Barney
is a subsidiary of Citigroup Inc. (NYSE: CCI).
FirstBank Northwest's first supermarket branch opened in Post Falls,
Idaho, in February. A new freestanding branch will open in Liberty Lake,
Washington, this fall. Both communities are located along the fast growing
I-90 corridor between Spokane, Washington and Coeur d'Alene, Idaho.
FirstBank Corp.'s assets rose 13% to $206.7 million at March 31, 1999.
Shareholder equity was reduced by 7% to $27.8 million, reflecting deployment
of funds from the public offering, dividend payments and repurchase of common
shares; the equity to asset ratio was reduced to 13.4% from 16.4%. Book value
equaled $16.29 per share at March 31, 1999.
FirstBank Corp. is the parent of FirstBank Northwest, which is
headquartered in Lewiston, Idaho at the northern end of Hell's Canyon.
Founded in 1920, the Bank converted from its charter as a federal stock
savings bank to a Washington State savings bank charter February 2, 1998.
FirstBank currently operates seven branch locations, plus two residential loan
centers located in Lewiston and Coeur d'Alene, ID. In addition to the new Post
Falls supermarket location, branches are located in Lewiston, Orchards,
Moscow, Grangeville, and Coeur d'Alene, Idaho; and Clarkston, Washington,
across the Snake River from Lewiston. The Bank is known as the local community
bank, offering its customers highly personalized service in the many
communities it serves. FBNW shares closed at $14.38 per share yesterday,
April 21.
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except per share data)
Fourth Quarter Ended Fiscal Year Ended
March 31, March 31,
1999 1998 1999 1998
Total Interest Income $3,730 $3,472 $15,003 $13,320
Interest Expense $1,784 $1,695 $7,254 $6,573
Provision for Loan Losses $31 $57 $296 $200
Net Interest Income After
Provision for Loan Losses $1,916 $1,720 $7,453 $6,547
Non-Interest Income $657 $648 $3,034 $2,282
Non-Interest Expense $1,931 $1,539 $7,531 $6,179
Income Tax Expense $98 $288 $923 $944
Net Income $543 $541 $2,032 $1,706
ProForma Basic Earnings
Per Share $0.33 $0.30 $1.16 $0.93
ProForma Diluted Earnings
Per Share $0.31 $0.30 $1.13 $0.93
Weighted Average Shares
Outstanding-Basic 1,659,497 1,836,034 1,748,351 1,829,911
Weighted Average Shares
Outstanding-Diluted 1,738,847 1,836,034 1,794,577 1,829,911
March 31, 1999 March 31, 1998
Total Assets $206,694 $183,563
Loans Receivable, net $165,566 $145,697
Mortgage-Backed Securities $12,874 $11,390
Investment Securities $7,236 $5,104
Deposits $133,278 $114,495
FHLB Advances $42,027 $35,656
Shareholders' Equity $27,774 $30,008
Book Value per Share $16.29 $16.36
Equity/Total Assets 13.44% 16.35%
Spread (yield, less cost
of funds) 3.94% 3.79%
Tier 1 Capital to Average
Assets 10.81% 11.56%
Risk-based Capital to
Risk-Weighted Assets 16.20% 18.05%
Number of full-time
Equivalent Employees 102 95
FINANCIAL STATISTICS
(ratios annualized)
Fourth Quarter Ended Fiscal Year Ended
March 31, March 31,
1999 1998 1999 1998
Return on Average Assets 1.09% 1.20% 1.03% 1.02%
Return on Average Equity 7.35% 7.19% 6.94% 6.72%
Average Equity/Average Assets 14.85% 16.70% 14.88% 15.19%
Average Equity/Average Loans 19.00% 20.83% 18.79% 19.28%
Efficiency Ratio 74.18% 63.46% 69.85% 68.46%
(operating expense / revenue)
Operating Expense/Average
Assets 3.88% 3.42% 3.83% 3.83%
Net Interest Margin 4.29% 4.26% 4.33% 4.38%
Interest Earning Assets/
Interest Bearing Liabilities 111.99% 115.95% 113.05% 112.73%
LOANS
(unaudited)
(in thousands except per share data)
Fiscal Year Ended
March 31, 1999 March 31, 1998
Loan originations: $165,627 $140,322
Loan portfolio analysis:
Real estate loans:
Residential $83,670 $87,985
Construction $9,333 $7,966
Agricultural $16,257 $14,602
Commercial $23,484 $12,433
Total real estate loans $132,744 $122,986
Consumer and other loans:
Home equity $6,012 $6,175
Agricultural operating $4,357 $2,305
Commercial $27,969 $16,627
Other consumer $8,687 $6,109
Total consumer and other loans $47,025 $31,216
Total Loans Receivable $179,769 $154,202
Allowance for loan losses:
Balance at Beginning of Period $1,120 $974
Provision for Loan Losses $296 $200
Charge offs (Net of Recoveries) $55 $54
Balance at End of Period $1,361 $1,120
Loan Loss Allowance/
Net Loans 0.82% 0.77%
Loan Loss Allowance/
Non-Performing Loans 216.38% 217.76%
Non-performing assets:
March 31, 1999 March 31, 1998
Accruing Loans - 90 Days Past Due $13 $2
Non-accrual Loans $612 $454
Total Non-performing Loans $625 $456
Restructured Loans on Accrual $201 $0
Real Estate Owned (REO) $299 $883
of Non-Performing Assets 120.98% 83.64%
Statements concerning future performance, developments or events,
concerning expectations regarding expansion opportunities and any other
guidance on future periods, constitute forward-looking statements, which are
subject to a number of risks and uncertainties. These include regional and
international economic conditions, interest rate fluctuations, successful Y2K
testing, development and success of on-line banking, and government and
regulatory actions, which might cause actual results to differ materially from
stated expectations.
SOURCE FirstBank 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
Corp., 208-746-9610
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