LEWISTON, Idaho, April 22 /PRNewswire-FirstCall/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for FirstBank
Northwest, today reported fiscal year 2003 was highlighted by continued loan
growth, loan portfolio diversification, and a 16.7% increase in net income to
$2.772 million in fiscal year 2003 compared with $2.376 million in fiscal year
2002. "During fiscal year 2003, we continued our performance record of growth
and increased income," said Clyde E. Conklin, President and Chief Executive
Officer. "This past year continued to be a difficult environment considering
the sluggish economy and declining interest rates. We managed through these
challenges and continued to produce asset growth and net income growth
consistent with our long term plan to build shareholder value," continued
Conklin.
On April 17, 2003, the Board of Directors for FirstBank NW Corp. declared
a regular quarterly cash dividend of $0.15 per common share. The dividend
will be paid on May 29, 2003 to shareholders of record as of May 15, 2003.
This is the twenty-third consecutive regular quarterly cash dividend since
FirstBank's conversion to the stock form of ownership in July 1997. Including
this dividend to be paid, total dividend payout is $0.57 per share or 27.5% of
the diluted earnings of $2.07 per share.
Net income benefited from both an improved net interest margin and
non-interest income. The net interest margin was $11.9 million for the twelve
months ended March 31, 2003, compared to $10.3 million for the same period
ending March 31, 2002. Net interest income, before loan loss allowances,
increased 15.5% for the twelve-month period. According to Larry K. Moxley,
Chief Financial Officer, "The net interest margin benefited from loan growth
and reduced interest expense. Additionally, non-interest income increased
from $4.0 million for the twelve- month period ending March 31, 2002 to
$4.4 million for the same period ending March 31, 2003. The primary driver of
the increase was from gain on sale of loans and service fees. The
non-interest income performance was impacted by the write down of mortgage
servicing rights valuation of $306,000 during fiscal year 2003. The value of
servicing rights currently reflected approximates fair value based on the
current interest rate environment."
"We continue to make significant progress towards a balance sheet
structure typical to commercial banking," noted Conklin. "The loan portfolio
has grown to $257.0 million at March 31, 2003 from $238.1 million at
March 31, 2002; a 7.9% increase. Commercial loans represent 42.7%,
agricultural loans 10.4%, construction loans 16.8%, consumer loans 10.0%, and
residential real estate 20.1%, based on the total portfolio. Construction
loans increased according to plan during the year primarily because of the
Boise Loan Production Office (LPO). The construction portfolio increased from
$9.9 million at March 31, 2002 to $46.8 million on March 31, 2003. Total
construction loans made during fiscal year 2003 were $56 million more than
fiscal year 2002, and $50 million of that was from the Boise LPO.
Additionally, the Boise LPO produced $14.7 million in term loan volume. We
feel very good about our first year in the Boise, Idaho market, and maintain
that FirstBank will continue to gain market share," said Conklin. "The
Spokane LPO opened in August 2002, and has produced $12.4 million in loan
volume during fiscal year 2003. The Spokane market area is one of our
largest, therefore we expect a continued increase in our share of that
market," continued Conklin.
"Deposit growth was $18.2 million; an increase of 9.3% since last year,
and funding from core deposits continue to increase. Core deposits represent
48% of our total branch deposits. Substantially all of our deposit growth in
branches last year was in core deposits, which is our primary emphasis" said
Moxley. "Additionally, it is important to note that loan growth in fiscal
year 2003 was funded by core deposit growth." Other funding sources include
Federal Home Loan Bank borrowings, as well as brokered deposit markets.
Allowance for loan loss reserves increased from $2.56 million on
March 31, 2002 to $3.41 million on March 31, 2002. Total reserves are now
1.33% of net loans as of March 31, 2003 versus 1.08% as of March 31, 2002.
Reserves were increased to appropriately reflect portfolio loan allocations
and the credit risk associated with the slow economy. "Specifically,
provisions were increased in fiscal year 2003 to reflect credit risk resulting
from the continued economic adversity in the lumber and paper manufacturing
sector in which we have a significant concentration of loans in that market
segment," noted Conklin.
"Asset quality is good and remains a high priority for FirstBank,"
continued Conklin. Total non-performing assets on March 31, 2003 were
$1.813 million, or 0.55% of total assets, compared with $1.122 million, or
.36% of total assets on March 31, 2002. Total non-performing assets were
reduced slightly for the fourth quarter of fiscal year 2003, reflecting
$1.813 million at March 31, 2003 versus $2.193 million at December 31, 2002.
Loan loss allowances to non-performing assets were 188.3% on March 31, 2003
compared with 145.5% on December 31, 2002.
FirstBank NW Corp.'s total assets increased 8.0% to $332.4 million on
March 31, 2003 compared to $307.8 million on March 31, 2002. Stockholders
equity on March 31, 2003 was $30.0 million compared with $27.8 million on
March 31, 2002. The equity ratio was 9.04% at March 31, 2003 compared to
9.03% a year ago. Tangible book value increased to $23.24 per share on
March 31, 2003 compared to $20.72 per share last year. At its closing stock
price of $24.60 per share on April 21, 2003, shares were selling at just 106%
of tangible book and 12 times fiscal year 2003 diluted earnings per share.
"Our confidence in the long term outlook and value of FirstBank is
evidenced in our consistent cash dividends paid and stock repurchase
programs," said Conklin. "Since July 1998, we have completed repurchases
totaling 34.0%, or 686,828 shares of FirstBank NW Corp. stock, of which 4% has
been reissued to fund stock benefit plans, for a net repurchase of 30.0%.
Stock repurchases are reviewed on a regular basis."
FirstBank's announced purchase of Oregon Trail Financial Corp. and its
subsidiary, Pioneer Bank located in Baker City, Oregon is progressing
appropriately and is expected to close within the last quarter of calendar
year 2003. "We are very positive about FirstBank's future when considering
the acquisition in conjunction with FirstBank's presence in the Boise and
Coeur d'Alene, Idaho and Spokane, Washington growth markets," noted Conklin.
Reported net income for the fourth quarter ending March 31, 2003 was
$777,000 compared to $573,000 for the same period one year ago; a 35.6%
increase. Earnings per share (diluted) for the fourth quarter ending
March 31, 2003 was $0.58 per share compared to $0.42 per share for the same
period last year. Total asset growth for the fourth quarter was 2.0% to
$332.4 million at March 31, 2003, compared to $325.9 million at
December 31, 2002.
Net charge-offs for the year ending March 31, 2003 were $182,000 compared
with $259,000 for the same period ending March 31, 2002. "We continue to
scrutinize our loan portfolio on a regular basis to assure that we maintain
credit quality," said Conklin. A majority of charge-offs in fiscal year 2002
occurred in the consumer loan and credit card portfolios. Commercial and
agricultural loan charge-offs were very minimal. Loan loss allowances
increased from $3.19 million to $3.41 million, or $224,000 for the quarter.
"The allowance is consistent with our approach throughout this past year,"
said Conklin.
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank Northwest is based in Lewiston, Idaho. FirstBank Northwest 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,
and now also in Boise, Idaho. Salomon Smith Barney has investment centers in
FirstBank's downtown Lewiston, Coeur d'Alene and Liberty Lake branches.
FirstBank Northwest is known as the local community bank, offering its
customers highly personalized service in the many communities it serves.
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.
FIRSTBANK NW CORP
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except share and per share data)
Three Months Ended Fiscal Year Ended
March 31, March 31,
2003 2002 2003 2002
Interest Income $5,080 $4,801 $20,575 $20,248
Interest Expense 2,042 2,204 8,710 9,992
Provision for Loan Losses 236 369 1,033 1,064
Net Interest Income After
Provision for Loan Losses 2,802 2,228 10,832 9,192
Non-Interest Income
Gain on sale of loans 596 385 2,128 1,782
Gain on sale of securities,
net 0 19 0 194
Mortgage Servicing Fees 42 63 184 243
Service fees and charges 504 419 1,913 1,671
Commission and other 39 34 161 125
Total Non-Interest Income 1,181 920 4,386 4,015
Non-Interest Expenses
Compensation and Related
Expenses 1,770 1,526 7,057 5,922
Occupancy 327 293 1,260 1,209
Other 781 605 3,076 2,635
Total Non-Interest Expense 2,878 2,424 11,393 9,766
Income Tax Expense 328 151 1,053 1,065
Net Income $777 $573 $2,772 $2,376
Basic Earnings per Share $0.61 $0.43 $2.15 $1.76
Diluted Earnings per Share $0.58 $0.42 $2.07 $1.70
Proforma Basic Cash Earnings
per Share (A) $0.64 $0.46 $2.24 $1.86
Proforma Diluted Cash Earnings
per Share (A) $0.61 $0.45 $2.15 $1.80
Weighted Average Shares
Outstanding- Basic 1,277,582 1,321,950 1,286,204 1,381,887
Weighted Average Shares
Outstanding- Diluted 1,336,102 1,362,788 1,344,272 1,400,658
Actual Shares Outstanding 1,380,992 1,436,392 1,380,992 1,436,392
March 31, 2003 March 31, 2002
Total Assets $332,398 $307,840
Cash and Cash Equivalents $24,741 $24,012
Loans Receivable, net $257,019 $238,136
Mortgage-Backed Securities $9,618 $11,433
Investment Securities $16,813 $12,524
Stock in FHLB, at cost $5,731 $5,380
Deposits $214,340 $196,123
FHLB Advances & Other
Borrowings $81,816 $79,722
Stockholders' Equity $30,064 $27,813
Book Value per Share (B) $23.24 $20.72
FASB 115 Adjustment after
Taxes $1,035 $174
Equity/ Total Assets 9.04% 9.03%
Tier 1 Capital to Average
Assets 8.41% 8.79%
Risk-based Capital to Risk-
Weighted Assets 13.11% 13.47%
Number of full-time equivalent
Employees 137 122
(A) Cash earnings per share exclude management recognition and
development plan expense that will continue until September of
2003.
(B) 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) 3/03 -- 87,311 shares and 3/02 -- 94,321 shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Fiscal Year Ended
March 31, March 31,
2003 2002 2003 2002
Return on Average Assets 0.95% 0.76% 0.87% 0.82%
Return on Average Equity 10.35% 8.13% 9.49% 8.47%
Average Equity/Average Assets 9.15% 9.39% 9.16% 9.73%
Average Equity/Average Loans 11.81% 12.13% 12.00% 12.48%
Efficiency Ratio (C) 66.48% 66.73% 68.04% 66.57%
Operating Expenses / Average
Assets 3.50% 3.23% 3.57% 3.39%
Net Interest Margin 4.11% 3.87% 4.16% 3.96%
Average Interest Earning Assets /
Average Deposits and Other
Borrowed Funds 104.76% 113.22% 104.40% 114.05%
Fiscal Year Ended Fiscal Year Ended
LOANS March 31, 2003 March 31, 2002
(unaudited) (in thousands
except share and per share data)
LOAN ORIGINATIONS (D):
Residential loan centers $206,806 $112,785
Consumer loan centers 12,861 16,138
Agricultural loan centers 27,377 25,229
Commercial loan centers 96,525 85,517
Total Loan Origination $343,569 $239,669
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $50,781 $62,770
Construction 46,836 9,870
Agricultural 15,921 16,264
Commercial 68,125 52,496
Total real estate loans 181,663 141,400
Consumer and other loans:
Home equity 19,924 24,832
Agricultural operating 13,000 12,289
Commercial 50,603 55,568
Other consumer 7,843 7,924
Total consumer and other
loans 91,370 100,613
Loans held for sale-residential
real estate 5,214 3,650
Total Loans Receivable $278,247 $245,663
Fiscal Year Ended Fiscal Year Ended
March 31, 2003 March 31, 2002
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $2,563 $1,758
Provision for Loan Losses 1,033 1,064
Charge offs (Net of Recoveries) (182) (259)
Balance at End of Period $3,414 $2,563
Loan Loss Allowance / Net Loans 1.33% 1.08%
Loan Loss Allowance / Non-
Performing Loans 272.90% 433.67%
(C) Calcuation is non-interest expense divided by tax equivalent
non-interest income and net interest income.
(D) Loan originations are based upon new production.
NON-PERFORMING ASSETS:
Fiscal Year Ended Fiscal Year Ended
March 31, 2003 March 31, 2002
Accruing Loans - 90 Days Past Due $0 $0
Non-accrual Loans 1,251 591
Total Non-performing Loans 1,251 591
Restructured Loans on Accrual 442 107
Real Estate Owned (REO) 120 424
Total Non-performing Assets $1,813 $1,122
Total Non-performing Assets/Total
Assets 0.55% 0.36%
Loan and REO Loss Allowance as a %
of Non-Performing Assets 188.31% 228.43%
AVERAGE BALANCES, INTEREST AVERAGE
YIELDS/COSTS
Three Months Ended Fiscal Year Ended
March 31, March 31,
2003 2002 2003 2002
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage Loans receivable $51,788 $62,290 $55,975 $67,231
Average Commercial Loans
receivable 120,267 102,637 109,559 87,022
Average Construction Loans
receivable 28,296 7,173 19,750 6,659
Average Consumer Loans receivable 28,727 33,147 31,085 34,657
Average Agricultural Loans
receivable 29,608 27,194 30,894 27,748
Average unearned loan fees and
discounts, allowance for loan
losses, and other (4,348) (3,056) (3,814) (2,659)
Total Average Loans receivable,
net 254,338 229,385 243,449 220,658
Average Loans Held for Sale 5,698 3,010 6,483 4,195
Average Mortgage-backed securities 10,113 11,975 10,832 14,036
Average Investment securities 16,700 12,361 14,554 12,448
Average Other earning assets 19,539 23,864 21,540 17,886
Total Average Interest Earning
Assets 306,388 280,595 296,858 269,223
Average Non-Interest Earning
Assets 22,072 19,379 21,880 19,110
Total Average Assets $328,460 $299,974 $318,738 $288,333
Average Interest Bearing
Liabilities:
Average Passbook, NOW, and money
market accounts $70,093 $59,866 $67,522 $53,960
Average Certificate of deposits 109,645 106,880 108,406 98,701
Average Advances from FHLB and
other 84,660 81,080 82,292 83,395
Total Average Interest Bearing
Liabilities 264,398 247,826 258,220 236,056
Average Non-Interest Bearing
Deposits 28,055 19,237 26,140 19,752
Average Deposits and Other
Borrowed Funds 292,453 267,063 284,360 255,808
Average Non-Interest Bearing
Liabilities 5,966 4,733 5,169 4,467
Total Average Liabilities 298,419 271,796 289,529 260,275
Total Average Equity 30,041 28,178 29,209 28,058
Total Average Liabilities and
Equity $328,460 $299,974 $318,738 $288,333
Interest Rate Yield on Earning
Assets 6.78% 7.01% 7.10% 7.67%
Interest Rate Expense on Deposits
and Other Borrowed Funds 3.09% 3.56% 3.37% 4.23%
Interest Rate Spread 3.69% 3.45% 3.73% 3.44%
Net Interest Margin 4.11% 3.87% 4.16% 3.96%
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., +1-208-746-9610
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