LEWISTON, Idaho, April 24 /PRNewswire Interactive News Release/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for FirstBank
Northwest, today reported fiscal year 2001 was highlighted by continued
growth, loan portfolio diversification, and achievement of net income
performance expectations.
Net interest margin was $8.8 million for the twelve months ended
March 31, 2001, compared to $8.3 million in fiscal 2000. Improved net
interest margin and higher non-interest income generated $1.88 million in net
income for fiscal 2001 compared to $1.7 for fiscal 2000; a growth rate of
10.4%. Fully diluted per share income for fiscal 2001 is $1.30 per share
compared to $1.06 per share for fiscal 2000; an increase of 22.6%.
For the fourth quarter, net interest income was $2.3 million, compared to
$2 million in the like quarter a year ago. FirstBank earned $476,000, or
$.33 per diluted share, in the fourth quarter, compared to $382,000, or
$.25 per diluted share, in the like quarter a year ago.
On April 19, 2001, the Board of Directors for FirstBank NW Corp. declared
a regular quarterly cash dividend of $.10 per common share. The dividend will
be paid on May 30, 2001 to shareholders of record as of May 16, 2001. This is
the fifteenth 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 $.39 per share, or 30% of the
diluted earnings of $1.30 per share.
"This year presented a number of challenges including compression of net
interest margins due to the volatile interest rate market, an inverted rate
curve during most of the year, deposit growth challenges, and a softening
economic environment," said Clyde E. Conklin, President and Chief Executive
Officer. "Considering those challenges, we feel good about our asset growth
of 13.4%, loan growth of 16.8%, deposit growth of 9%, a net interest margin of
3.83%, and net earnings per share growth of 22.4%."
"We continue to diversify our loan portfolio to reflect that of a
commercial bank", said Larry K. Moxley, Executive Vice President and Chief
Financial Officer. "Commercial and agricultural loans now reflect 47% of our
total loan portfolio as compared to 42% a year ago, and net loan growth was
16.8% for the year" said Moxley.
"Our branch deposits grew from $144.9 million to $157.8 million during the
year, which is an 8.9% growth rate. Core deposits for checking, money market,
and savings totaled 43.0% of deposits at year-end compared to 45.3% last year.
Increasing core deposit funding is a key strategy going forward," said Moxley.
"We continue to diversify our funding utilizing Federal Home Loan Bank
borrowings, as well as national deposit markets."
"Asset quality remains very good and is a high priority given the economic
slowing we see in the area," continued Conklin. "The impact of increased
energy costs are yet to be fully realized within the economy. Allowances for
loan losses increased to $1.7 million from $1.6 million last year."
Non performing assets as a percent of total assets were .53% at
March 31, 2001 compared to .33% a year ago. Loan loss allowances to
non-performing loans has decreased to 121.8% from 275.1% last year.
Non-performing assets have increased from $825,000 on March 31, 2000 to
$1,476,000 on March 31, 2001, however they have decreased $289,000 since
December 31, 2000. "We anticipate continued pressure on asset quality over
the next year," noted Conklin. "We continue to assess asset quality on a
regular basis."
Non-interest income increased slightly to $2.6 million from $2.4 million
for March 31, 2001 and March 31, 2000, respectively. Gain on sale of
residential real estate loans remained slightly down from the previous year,
however the Merchant Visa product generated substantial new fee income in its
first full year offering.
"It is important to note that we made significant investments during
previous years to support future growth, which included upgraded technology
and staffing new branches. Those investments caused non-interest expense for
the year to rise to $8.7 million compared to $8.2 million in fiscal 2000,"
Conklin added. "The investments are in place and are operating effectively,
therefore more effort can be focused on attaining the efficiencies
anticipated," Conklin continued. "The ratio of operating expense to average
assets has decreased to 3.3% from 3.6% last year. Conversely, the decrease in
efficiency ratio to 71.8% from 72.6% is understated because of the net
interest margin compression experienced this past year."
FirstBank NW Corp.'s assets increased 13.4% to $281.1 million at
March 31, 2001, from $247.9 million a year ago. Including the result of stock
repurchases and investments for future growth, stockholders' equity was
$28.0 million compared to $25.9 million last year. The equity to asset ratio
was 9.9% at March 31, 2001 compared to 10.4% one year ago. Tangible book
value increased to $19.39 per share compared to $17.30 per share a year ago.
At its closing stock price of $13.60 on April 24, shares were selling at just
71% of tangible book value.
"We expect the investments made over the past several quarters to have a
positive impact in the upcoming year," Conklin said. "Our confidence in the
long-term outlook and value of FirstBank is evidenced in our consistent
dividend payments and stock buyback programs. Just last week, the Board
declared the fifteenth consecutive regular quarterly cash dividend since our
conversion to the stock form of ownership in July 1997. Since July 1998, we
have completed repurchases totaling 26%, or 512,467 of FBNW shares, of which
4% has been reissued to fund stock benefit plans, for a net repurchase of
18%. Stock repurchases are reviewed on a regular basis."
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, 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 Twelve Months
Ending Ending
March 31, March 31,
2001 2000 2001 2000
Interest Income $5,402 $4,485 $20,757 $16,979
Interest Expense 3,000 2,342 11,617 8,437
Provision for Loan Losses 94 74 303 287
Net Interest Income After
Provision for
Loan Losses 2,308 2,069 8,837 8,255
Non-Interest Income
Gain on sale of loans 198 173 843 1,051
Mortgage Servicing Fees 91 67 272 271
Service fees and charges 360 258 1,349 1,000
Commission and other 41 28 130 104
Total Non-Interest Income 690 526 2,594 2,426
Non-Interest Expenses
Compensation and Related
Expenses 1,370 1,129 5,077 4,674
Occupancy 313 295 1,237 1,132
Other 596 556 2,369 2,352
Total Non-Interest Expense 2,279 1,980 8,683 8,158
Income Tax Expense 243 233 866 818
Net Income $476 $382 $1,882 $1,705
Basic Earnings per Share $0.34 $0.26 $1.34 $1.11
Diluted Earnings per Share $0.33 $0.25 $1.30 $1.06
Proforma Basic Cash Earnings
per Share (A) $0.37 $0.29 $1.44 $1.20
Proforma Diluted Cash Earnings
per Share (A) $0.36 $0.28 $1.40 $1.15
Weighted Average Shares
Outstanding - Basic 1,396,834 1,446,876 1,404,935 1,535,137
Weighted Average Shares
Outstanding - Diluted 1,441,684 1,510,356 1,447,966 1,606,586
Actual Shares Outstanding 1,546,953 1,616,077 1,546,953 1,616,077
March 31, March 31,
2001 2000
Total Assets $281,062 $247,898
Loans Receivable, net 219,151 187,664
Mortgage-Backed Securities 20,039 21,225
Investment Securities 12,568 11,335
Deposits 157,797 144,907
FHLB Advances & Other Borrowings 90,917 74,578
Stockholders' Equity 27,976 25,866
Book Value per Share (B) $19.39 $17.30
FASB 115 Adjustment after Taxes 600 (548)
Equity/ Total Assets 9.95% 10.43%
Tier 1 Capital to Average Assets 9.40% 10.00%
Risk-based Capital to Risk-Weighted
Assets 14.77% 13.10%
Number of full-time Equivalent
Employees 113 111
(A) Cash earnings per share exclude MRDP 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) 3/01 -- 104,225 shares, 3/00 -- 119,705 shares
FINANCIAL STATISTICS
(ratios annualized)
Three Months Twelve Months
Ended Ended
March 31, March 31,
2001 2000 2001 2000
Return on Average Assets 0.68% 0.64% 0.71% 0.75%
Return on Average Equity 6.86% 5.92% 7.07% 6.36%
Average Equity/Average Assets 9.94% 10.76% 10.00% 11.82%
Average Equity/Average Loans 12.89% 14.23% 13.01% 15.11%
Efficiency Ratio 71.44% 71.73% 71.82% 72.64%
(operating expenses / FTE revenue)
Operating Expenses / Average Assets 3.27% 3.30% 3.27% 3.60%
Net Interest Margin 3.82% 4.00% 3.83% 4.16%
Interest Earning Assets / Interest
Bearing Liabilities 106.02% 106.01% 104.52% 107.95%
Twelve Months Twelve Months
Ending Ending
March 31, March 31,
2001 2000
LOANS
(unaudited) (in thousands except
share and per share data)
LOAN ORIGINATIONS:
Residential loan centers $70,175 $77,646
Consumer loan centers 17,287 18,859
Agricultural loan centers 22,011 15,155
Commercial loan centers 58,933 41,764
Total Loan Origination $168,406 $153,424
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $74,892 $71,796
Construction 8,028 7,819
Agricultural 15,383 16,003
Commercial 37,969 24,988
Total real estate loans 136,272 120,606
Consumer and other loans:
Home equity 27,323 24,626
Agricultural operating 10,938 7,467
Commercial 41,789 32,800
Other consumer 8,255 7,533
Total consumer and other loans 88,305 72,426
Total Loans Receivable $224,577 $193,032
Twelve Months Twelve Months
Ending Ending
March 31, March 31,
2001 2000
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $1,604 $1,361
Provision for Loan Losses 303 287
Charge offs (Net of Recoveries) 149 44
Balance at End of Period $1,758 $1,604
Loan Loss Allowance / Net Loans 0.80% 85.00%
Loan Loss Allowance / Non-Performing
Loans 121.83% 275.13%
NON-PERFORMING ASSETS:
Twelve Months Twelve Months
Ending Ending
March 31, March 31,
2001 2000
Accruing Loans - 90 Days Past Due $282 $0
Non-accrual Loans 1,161 583
Total Non-performing Loans 1,443 583
Restructured Loans on Accrual 0 198
Real Estate Owned (REO) 33 44
Total Non-performing Assets $1,476 $825
Total Non-performing Assets/Total
Assets 0.53% 33.00%
Loan and REO Loss Allowance as a % of
Non-Performing Assets 119.11% 194.42%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Three Months Twelve Months
Ended Ended
March 31, March 31,
2001 2000 2001 2000
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage Loans receivable $73,204 $70,737 $72,629 $70,306
Average Commercial Loans
receivable 76,993 53,081 66,492 47,301
Average Construction Loans
receivable 5,223 5,131 5,485 6,806
Average Consumer Loans receivable 35,340 31,203 34,677 29,454
Average Agricultural Loans
receivable 26,437 23,076 27,258 25,178
Average unearned loan fees and
discounts,allowance for loan
losses, and other (2,155) (1,942) (2,095) (1,700)
Total Average Loans receivable,net 215,042 181,286 204,446 177,345
Average Mortgage-backed securities 20,005 21,295 20,279 15,874
Average Investment securities 12,457 11,177 11,901 8,437
Average Other earning assets 14,220 9,959 11,479 10,482
Total Average Interest Earning
Assets 261,724 223,717 248,105 212,138
Average Non-Interest Earning
Assets 17,210 16,144 17,802 14,561
Total Average Assets $278,934 $239,861 $265,907 $226,699
Average Interest Bearing
Liabilities:
Average Passbook, NOW, and money
market accounts $62,758 $61,109 $63,486 $62,230
Average Certificate of deposits 91,705 81,887 83,670 80,039
Average Advances from FHLB and
other 92,406 68,040 88,747 54,242
Total Average Interest Bearing
Liabilities 246,869 211,036 235,903 196,511
Average Non-Interest Bearing
Liabilities 4,337 3,027 3,408 3,393
Total Average Liabilities 251,206 214,063 239,311 199,904
Total Average Equity 27,728 25,798 26,596 26,795
Total Average Liabilities and
Equity $278,934 $239,861 $265,907 $226,699
Interest Rate Yield on Earning
Assets 8.41% 8.18% 8.51% 8.13%
Interest Rate Expense on Interest
Bearing Liabilities 4.86% 4.44% 4.92% 4.29%
Interest Rate Spread 3.55% 3.74% 3.59% 3.84%
Net Interest Margin 3.82% 4.00% 3.83% 4.16%
SOURCE FirstBank NW Corp.
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Related links:
http://www.firstbanknw.com
CONTACT:
Larry K. Moxley, Exec. VP & CFO of FirstBank
NW Corp., 208-746-9610
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