LEWISTON, Idaho, April 25 /PRNewswire/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for FirstBank
Northwest, today reported fiscal year 2000 was highlighted by continued
top-line growth, expansion in assets, loans and deposits, and investments in
new branches and infrastructure.
Net interest income was $8.3 million for the twelve months ended
March 31, 2000, compared to $7.4 million in fiscal 1999. Lower fee income and
higher expenses led to net income of $1.7 million, or $1.06 per diluted share,
for the fiscal year, compared to $2.0 million, or $1.13 per diluted share, in
fiscal year 1999.
For the fourth quarter, net interest income was $2.1 million, compared to
$1.9 million in the like quarter a year ago. FirstBank earned $382,000, or
$.25 per diluted share, in the fourth quarter, compared to $543,000, or
$.31 per diluted share, in the like quarter a year ago.
On April 20, 2000, the Board of Directors for FirstBank NW declared a
regular quarterly cash dividend of $.09 per common share. The dividend will
be paid on May 26, 2000 to shareholders of record as of May 12, 2000. This is
the eleventh consecutive regular quarterly cash dividend since FirstBank NW's
conversion to the stock form of ownership in July 1997.
"This was a year for building for our future," said Clyde E. Conklin,
President and Chief Executive Officer. "We invested in our franchise with new
branches and technological infrastructure for better service and increased
efficiencies. In addition, we maintained a net interest margin of 4.2%, while
growing assets 20%, net loans 13% and deposits 9% over the last twelve
months."
"We are creating a more balanced loan portfolio," said Larry K. Moxley,
Executive Vice President and Chief Financial Officer. "Commercial loans have
increased 12% year-over-year and now represent 30% of our total loan
portfolio, while residential now accounts for 39% of the total portfolio. Net
loans increased to $187.7 million in fiscal 2000 compared to $165.6 million
the year before.
"Loan quality remains excellent with non-performing assets accounting for
just 0.33% of total assets compared to 0.54% a year ago, despite the solid
growth in total loans and the shift in our portfolio. We believe our loan
loss allowance is adequate at 275% of non-performing loans," said Moxley.
As a result of originating fewer residential loans that are sold in the
secondary market, non-interest income was $526,000 for the fourth quarter,
compared to $657,000 in the like quarter a year ago. Reduced residential loan
originations also impacted non-interest income for the year, which was
$2.4 million for fiscal 2000, compared to $3.1 million in the year ago period.
"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 eleventh consecutive regular quarterly cash dividend since our
conversion to the stock form of ownership in July 1997. Since July 1998, we
have completed stock repurchases totaling 22%, or 446,000 of FBNW shares, of
which 4% has been reissued to fund stock benefit plans, for a net repurchase
of 18%. Another program to repurchase up to 5% of outstanding shares was
announced on March 29."
"It is important to note that we made significant investments during the
year to support future growth, which included upgraded technology and staffing
for new branches. Those investments caused non-interest expense for the year
to rise to $8.2 million compared to $7.6 million in fiscal 1999. While
non-interest expense rose only slightly to $2.0 million for the fourth quarter
compared to $1.9 million in the like quarter a year ago," Conklin added. "The
efficiency ratio for the year was 74.4% compared to 70.0% a year ago, while
the efficiency ratio for the fourth quarter remained level year over year at
74.2%.
"We will be adding online banking to our already strong group of products
and services," he continued. "This new program will give our customers the
ability to check balances, transfer between accounts, pay bills and other cash
management activities. We also have some special services for our business
customers that will allow them to originate ACH and tax payments, as well as
facilitate e-commerce. Online banking should be available to our customers
this summer. Adding this type of technology keeps us competitive and expands
on the high level of service our customers expect."
FirstBank NW's assets increased 20% to $247.9 million at
March 31, 2000 from $206.7 million a year ago. As a result of stock
repurchases and investments for future growth, stockholders' equity was
$25.9 million compared to $27.8 million one year ago. The equity to asset
ratio was 11.8% at March 31, 2000 compared to 14.9% one year ago. Tangible
book value increased to $17.30 per share compared to $16.29 per share a year
ago. At its closing stock price of $10.06 on April 24, FBNW shares were
selling at just 58% of tangible book value.
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in
1920, FirstBank NW is based in Lewiston, Idaho at the northern end of Hell's
Canyon. With the opening of its Liberty Lake branch, FirstBank NW 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 recently placed investment centers in FirstBank
NW's downtown Lewiston and Coeur d'Alene branches. FirstBank NW 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.
FINANCIAL HIGHLIGHTS
(unaudited)(in thousands except share and per share data)
Three Months Ended Twelve Months Ended
March 31, March 31
2000 1999 2000 1999
Interest Income $4,485 $3,730 $16,979 $14,961
Interest Expense 2,342 1,784 8,437 7,223
Provision for Loan Losses 74 31 287 296
Net Interest Income After
Provision for Loan Losses 2,069 1,916 8,255 7,442
Non-Interest Income 526 657 2,426 3,107
Non-Interest Expense 1,980 1,931 8,158 7,593
Income Tax Expense 233 98 818 923
Net Income $382 $543 $1,705 $2,032
Basic Earnings per Share $0.26 $0.33 $1.11 $1.16
Diluted Earnings per Share $0.25 $0.31 $1.06 $1.13
Weighted Average Shares
Outstanding - Basic 1,446,876 1,659,497 1,535,137 1,748,351
Weighted Average Shares
Outstanding - Diluted 1,510,356 1,738,847 1,605,586 1,796,344
Mar. 31, 2000 Mar. 31, 1999
Total Assets $247,898 $206,745
Loans Receivable, net $187,664 $165,617
Mortgage-Backed Securities $21,225 $12,873
Investment Securities $11,335 $7,236
Deposits $144,907 $133,278
FHLB Advances $74,578 $42,027
Stockholders' Equity $25,866 $27,774
Book Value per Share $17.30 $16.22
Equity/ Total Assets 10.43% 13.43%
Spread 3.84% 3.88%
Tier 1 Capital to Average
Assets 9.96% 10.20%
Risk-based Capital to
Risk-Weighted Assets 14.30% 16.20%
Number of full-time
Equivalent Employees 111 102
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Twelve Months Ended
March 31 March 31
2000 1999 2000 1999
Return on Average Assets 0.64% 1.09% 0.75% 1.03%
Return on Average Equity 5.92% 7.35% 6.36% 6.94%
Average Equity/Average Assets 10.76% 14.85% 11.82% 14.88%
Average Equity/Average Loans 14.23% 19.00% 15.11% 18.79%
Efficiency Ratio 74.19% 74.18% 74.38% 70.02%
(operating expenses / revenue)
Operating Expenses / Average
Assets 3.30% 3.88% 3.60% 3.86%
Net Interest Margin 4.00% 4.29% 4.16% 4.36%
Interest Earning Assets /
Interest Bearing Liabilities 106.01% 111.99% 107.95% 112.07%
Twelve Months Ended
Mar. 31, 2000 Mar. 31, 1999
LOANS
(unaudited)(in thousands except share and per share data)
LOAN ORIGINATIONS: $124,733 $165,627
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $75,464 $71,516
Construction 4,150 9,333
Agricultural 15,819 16,257
Commercial 24,988 23,484
Total real estate loans $120,421 $120,590
Consumer and other loans:
Home equity $23,895 $18,166
Agricultural operating 7,652 4,357
Commercial 32,800 27,969
Other consumer 8,264 8,687
Total consumer and other loans $72,611 $59,179
Total Loans Receivable $193,032 $179,769
Fourth Quarter Ended
2000 1999
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $1,361 $1,120
Provision for Loan Losses $287 $296
Charge offs (Net of Recoveries) $44 $55
Balance at End of Period $1,604 $1,361
Loan Loss Allowance / Net Loans 0.85% 0.82%
Loan Loss Allowance / Non-Performing
Loans 275.13% 217.76%
NON-PERFORMING ASSETS:
March 31, 2000
2000 1999
Accruing Loans - 90 Days Past Due $-- $13
Non-accrual Loans $583 $612
Total Non-performing Loans $583 $625
Restructured Loans on Accrual $198 $201
Real Estate Owned (REO) $44 $299
Total Non-performing Assets $825 $1,125
Total Non-performing Assets/Total Assets 0.33% 0.54%
Loan and REO Loss Allowance as a % of
Non-Performing Assets 194.42% 120.98%
SOURCE FirstBank NW 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
NW Corp., 208-746-9610
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