LEWISTON, Idaho, April 23 /PRNewswire-FirstCall/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for FirstBank
Northwest, today reported fiscal year 2002 was highlighted by continued loan
growth, loan portfolio diversification, and a 26% increase in net income to
$2.376 million in fiscal year 2002 compared with $1.882 million in fiscal
year 2001. "Fiscal year 2002 has proven to be an outstanding year," said
Clyde E. Conklin, President and Chief Executive Officer. "This past year was
a difficult environment considering the recessionary 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 18, 2002, the Board of Directors for FirstBank NW Corp. declared
a regular quarterly cash dividend of $0.12 per common share. The dividend
will be paid on May 30, 2002 to shareholders of record as of May 16, 2002.
This is the nineteenth 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 $0.46 per share or 27.1% of
the diluted earnings of $1.70 per share.
Net income benefited from both an improved net interest margin and
non-interest income. The net interest margin was $10.3 million for the
twelve months ended March 31, 2002, compared to $9.1 million for the same
period ending March 31, 2001. Net interest income, before loan loss
allowances, increased 12.2% 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 significantly from $2.6 million for the twelve month period
ending March 31, 2001 to $4.0 million for the same period ending
March 31, 2002; a 54.8% increase. The primary drivers of the increase was from
gain on sale of loans and service fees, which combined, increased 50.0% from
$2.5 million to $3.7 million for the same twelve-month periods, respectively."
"We continue to make significant progress towards a balance sheet
structure typical to commercial banking," said Conklin. "The loan portfolio
has grown to $238.1 million at March 31, 2002 from $219.2 million at
March 31, 2001; an 8.7% increase. Commercial loans represent 44.0%,
agricultural loans 11.6%, construction loans 4.0%, consumer loans 13.4%, and
residential real estate 27.0%, based on the total portfolio. "We maintain
that the reduced portfolio allocation of residential real estate loans and
increased emphasis on our commercial loan portfolio is consistent with the
loan portfolios of other commercial banks," said Conklin. "Additionally,
funding from core deposits continue to increase. Core deposits represent
47.7% of our total branch deposits." Total branch deposits (excluding
brokered deposits) increased 14.1% from $155.3 million at March 31, 2001 to
$177.1 million at March 31, 2002. Conklin went on to note, "It is very
encouraging that of the $21.9 million in branch deposit growth during fiscal
year 2002, $16.6 million, or 75.7%, was in core checking, money market, and
passbook savings accounts." Other funding sources include Federal Home Loan
Bank borrowings, as well as brokered deposit markets.
Allowance for loan loss reserves increased from $1.76 million on
March 31, 2001 to $2.56 million on March 31, 2002. Total reserves are now
1.08% of net loans as of March 31, 2002 versus 0.8% as of March 31, 2001.
"Reserves were increased to appropriately reflect portfolio loan allocations
and the credit risk associated with the recessionary economy," noted Conklin.
"More specifically, provisions were increased to $106,000 in the fourth
quarter of fiscal year 2002 to reflect credit risk in the Lewiston, ID market
related to continued economic adversity in the lumber and paper manufacturing
sector in which we have a significant concentration of loans in that market
segment."
"Asset quality is good and remains a high priority for FirstBank,"
continued Conklin. Total non-performing assets on March 31, 2002 were
$1.122 million, or 0.36% of total assets, compared with $1.476 million, or
.53% of total assets on March 31, 2001. Total non-performing assets remained
essentially unchanged for the fourth quarter of fiscal year 2002, reflecting
$1.122 million at March 31, 2002 versus $1.575 million at December 31, 2001.
Loan loss allowances to non-performing assets were 228.4% on March 31, 2002
compared with 150.2% on December 31, 2001.
FirstBank NW Corp.'s total assets increased 9.5% to $308 million on
March 31, 2002 compared to $281.1 million on March 31, 2001. Stockholders
equity on March 31, 2002 was $27.8 million compared with $28.0 million on
March 31, 2001. The equity ratio was 9.0% at March 31, 2002 compared to
10.0% a year ago. Tangible book value increased to $20.72 per share on
March 31, 2002 compared to $19.39 per share last year. At its closing stock
price of $18.00 per share on April 23, 2002, shares were selling at just
87% of tangible book and 10.6 times fiscal year 2002 actual earnings
per share.
"We expect our investments in the Boise, Idaho and Spokane, Washington
markets to have a positive impact in the upcoming year," noted Conklin. "Our
confidence in the long term outlook and value of FirstBank is evidenced in our
consistent cash dividends paid and stock repurchase programs. Since
July 1998, we have completed repurchases totaling 31.6%, or 627,228 shares of
FirstBank NW Corp. stock, of which 4% has been reissued to fund stock benefit
plans, for a net repurchase of 27.6%. Stock repurchases are reviewed on a
regular basis."
Reported net income for the fourth quarter ending March 31, 2002 was
$573,000 compared to $476,000 for the same period one year ago; a
20.5% increase. Earnings per share (diluted) for the fourth quarter ending
March 31, 2002 was $0.42 per share compared to $0.33 per share for the same
period last year. Total asset growth for the fourth quarter was 3.7% to
$308 million at March 31, 2002, compared to $297 million at December 31, 2001.
Growth for the fourth quarter of fiscal year 2001 ending March 31, 2001 was
1.5% to $281 million from $276.8 million on December 31, 2000.
Net charge-offs for the year ending March 31, 2002 were $259,000 compared
with $149,000 for the same period ending March 31, 2001. "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 $2.37 million to $2.56 million, or $196,000 for the quarter.
"The allowance is consistent with our approach throughout this past year,"
said Conklin.
The Boise Loan Production Office opened in temporary quarters in
mid March; all staff was hired and production was initiated. "We are pleased
with the quality of staff and the prompt opening," said Conklin. "The branch
application was approved, and we officially opened on April 15, 2002. In
addition, a Spokane LPO, which will initially focus on commercial lending, is
planned and loan officers are hired. Relocation to a facility in Spokane, WA
is anticipated by mid-summer," continued Conklin. "It is anticipated that
investment in staff and facilities for the Boise and Spokane LPOs will reduce
income until loan production is booked per the plan. The second half of fiscal
year 2003 should reflect the improved income from loan production," Conklin
noted.
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,
2002 2001 2002 2001
Interest Income $4,801 $5,402 $20,248 $20,757
Interest Expense 2,204 3,000 9,992 11,617
Provision for Loan Losses 369 94 1,064 303
Net Interest Income After
Provision for Loan Losses 2,228 2,308 9,192 8,837
Non-Interest Income
Gain on sale of loans 385 198 1,782 843
Gain on sale of securities, net 19 0 194 0
Mortgage Servicing Fees 63 91 243 272
Service fees and charges 419 360 1,671 1,349
Commission and other 34 41 125 130
Total Non-Interest Income 920 690 4,015 2,594
Non-Interest Expenses
Compensation and Related
Expenses 1,526 1,370 5,922 5,077
Occupancy 293 313 1,209 1,237
Other 605 596 2,635 2,369
Total Non-Interest Expense 2,424 2,279 9,766 8,683
Income Tax Expense 151 243 1,065 866
Net Income $573 $476 $2,376 $1,882
Basic Earnings per Share $0.43 $0.34 $1.76 $1.34
Diluted Earnings per Share $0.42 $0.33 $1.70 $1.30
Proforma Basic Cash Earnings
per Share (A) $0.46 $0.37 $1.86 $1.44
Proforma Diluted Cash Earnings
per Share (A) $0.45 $0.36 $1.80 $1.40
Weighted Average Shares
Outstanding - Basic 1,321,950 1,396,834 1,381,887 1,404,935
Weighted Average Shares
Outstanding - Diluted 1,362,788 1,441,684 1,400,658 1,447,966
Actual Shares Outstanding 1,436,392 1,546,953 1,436,392 1,546,953
March 31, 2002 March 31, 2001
Total Assets $307,840 $281,062
Cash and Cash Equivalents $24,012 $12,805
Loans Receivable, net $238,136 $219,151
Mortgage-Backed Securities $11,433 $20,039
Investment Securities $12,524 $12,568
Stock in FHLB, at cost $5,380 $5,032
Deposits $196,123 $157,797
FHLB Advances & Other Borrowings $79,722 $90,917
Stockholders' Equity $27,813 $27,976
Book Value per Share (B) $20.72 $19.39
Unrealized gain on investments,
net of tax $174 $600
Equity/ Total Assets 9.03% 9.95%
Tier 1 Capital to Average Assets 8.82% 9.18%
Risk-based Capital to Risk-Weighted
Assets 13.51% 14.45%
Number of full-time equivalent Employees 122 113
(A) Cash earnings per share excludes 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) 3/02 -- 94,321 shares and 3/01 -- 105,438 shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Fiscal Year Ended
March 31, March 31,
2002 2001 2002 2001
Return on Average Assets 0.76% 0.68% 0.82% 0.71%
Return on Average Equity 8.13% 6.86% 8.47% 7.07%
Average Equity/Average Assets 9.39% 9.94% 9.73% 10.00%
Average Equity/Average Loans 12.13% 12.89% 12.48% 13.01%
Efficiency Ratio (C) 66.73% 71.44% 66.57% 72.64%
Operating Expenses/Average Assets 3.23% 3.27% 3.39% 3.27%
Net Interest Margin 3.87% 3.82% 3.96% 3.83%
Interest Earning Assets/Interest
Bearing Liabilities 113.22% 113.43% 114.05% 113.10%
Fiscal Year Ended Fiscal Year Ended
March 31, 2002 March 31, 2001
LOANS
(unaudited) (in thousands except share and per share data)
LOAN ORIGINATIONS (D):
Residential loan centers $112,785 $70,175
Consumer loan centers 16,138 17,287
Agricultural loan centers 25,229 22,011
Commercial loan centers 85,517 58,933
Total Loan Origination $239,669 $168,406
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $66,420 $74,892
Construction 9,870 8,028
Agricultural 16,264 15,383
Commercial 52,496 37,969
Total real estate loans 145,050 136,272
Consumer and other loans:
Home equity 24,832 27,323
Agricultural operating 12,289 10,938
Commercial 55,568 41,789
Other consumer 7,924 8,255
Total consumer and other loans 100,613 88,305
Total Loans Receivable $245,663 $224,577
Fiscal Year Ended Fiscal Year Ended
March 31, 2002 March 31, 2001
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $1,758 $1,604
Provision for Loan Losses 1,064 303
Charge offs (Net of Recoveries) (259) (149)
Balance at End of Period $2,563 $1,758
Loan Loss Allowance/Net Loans 1.08% 0.80%
Loan Loss Allowance/Non-Performing Loans 433.67% 121.83%
(C) Calculation 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, 2002 March 31, 2001
Accruing Loans - 90 Days Past Due $0 $282
Non-accrual Loans 591 1,161
Total Non-performing Loans 591 1,443
Restructured Loans on Accrual 107 0
Real Estate Owned (REO) 424 33
Total Non-performing Assets $1,122 $1,476
Total Non-performing Assets/Total
Assets 0.36% 0.53%
Loan and REO Loss Allowance as a % of
Non-
Performing Assets 228.43% 119.11%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Three Months Ended Fiscal Year Ended
March 31, March 31,
2002 2001 2002 2001
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage Loans receivable $65,300 $73,204 $71,426 $72,629
Average Commercial Loans
receivable 102,637 76,993 87,022 66,492
Average Construction Loans
receivable 7,173 5,223 6,659 5,485
Average Consumer Loans receivable 33,147 35,340 34,657 34,677
Average Agricultural Loans
receivable 27,194 26,437 27,748 27,258
Average unearned loan fees and
discounts, allowance for loan
losses, and other (3,056) (2,155) (2,659) (2,095)
Total Average Loans receivable,
net 232,395 215,042 224,853 204,446
Average Mortgage-backed securities 11,975 20,005 14,036 20,279
Average Investment securities 12,361 12,457 12,448 11,901
Average Other earning assets 23,864 14,220 17,886 11,479
Total Average Interest Earning
Assets 280,595 261,724 269,223 248,105
Average Non-Interest Earning
Assets 19,379 17,210 19,110 17,802
Total Average Assets $299,974 $278,934 $288,333 $265,907
Average Interest Bearing Liabilities:
Average Passbook, NOW, and money
market accounts $59,866 $46,634 $53,960 $46,945
Average Certificate of deposits 106,880 91,705 98,701 83,670
Average Advances from FHLB and
other 81,080 92,406 83,395 88,747
Total Average Interest Bearing
Liabilities 247,826 230,745 236,056 219,362
Average Non-Interest Bearing
Deposits 19,237 16,124 19,752 16,541
Average Other Non-Interest Bearing
Liabilities 4,733 4,337 4,467 3,408
Total Average Liabilities 271,796 251,206 260,275 239,311
Total Average Equity 28,178 27,728 28,058 26,596
Total Average Liabilities and
Equity $299,974 $278,934 $288,333 $265,907
Interest Rate Yield on Earning
Assets 7.01% 8.41% 7.67% 8.51%
Interest Rate Expense on Interest
Bearing Liabilities 3.56% 5.20% 4.23% 5.30%
Interest Rate Spread 3.45% 3.21% 3.44% 3.21%
Net Interest Margin 3.87% 3.82% 3.96% 3.83%
SOURCE FirstBank NW Corp.
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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
NW Corp., +1-208-746-9610
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