CLARKSTON, Wash., April 27 /PRNewswire-FirstCall/ -- FirstBank NW Corp.
(Nasdaq: FBNW), the holding company for FirstBank Northwest, today reported
fiscal year 2004 net income of $4.36 million and total assets of
$699.9 million, representing an increase of 57.2% in net income and 110.6% in
total assets. The year was highlighted by the acquisition of Oregon Trail
Financial Corp., and its wholly-owned subsidiary, Pioneer Bank, A Federal
Savings Bank on October 31, 2003. The acquisition increased shareholder value
through enhanced earnings capacity, increasing the asset and deposit base
which positions FirstBank for growth in the Boise, Idaho, Coeur d'Alene,
Idaho, and Spokane, Washington markets. Additionally, this past year, two new
branches were opened in Hayden, Idaho and Boise, Idaho, as well as FirstBank
built its new headquarters with a branch in Clarkston, Washington, which
opened in July 2003. "We have had an exceptionally busy and productive year
which positions FirstBank to continue the performance-focused growth in
earnings and assets," said Clyde E. Conklin, President and Chief Executive
Officer. "The integration of the two bank's systems, along with regulatory
compliance of FDICIA and Sarbanes-Oxley will be accomplished over fiscal year
2005, all of which will require substantial investment in systems and
technology. We will remain focused on earnings and balance sheet growth as we
work through these initiatives during this next year," said Conklin.
On April 21, 2004, the Board of Directors for FirstBank NW Corp. declared
a regular quarterly cash dividend of $0.17 per common share. The dividend
will be paid on June 3, 2004 to shareholders of record as of May 20, 2004.
This is the twenty-seventh 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 $0.64 per share or 30% of
the diluted earnings of $2.15 per share.
Net income benefited from non-interest income and the acquisition of
Oregon Trail. The net interest margin was $17.5 million for the twelve months
ended March 31, 2004, compared to $11.9 million for the same period ending
March 31, 2003. Net interest income, before loan loss allowances, increased
47.3% 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
$4.4 million for the twelve-month period ending March 31, 2003 to $5.4 million
for the same period ending March 31, 2004. 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 $427,000 during fiscal year 2004. 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," said Conklin. "The loan portfolio
has grown to $464.4 million at March 31, 2004 from $257.0 million at
March 31, 2003; an increase of 4.2% excluding the purchase of $196.6 million
in Pioneer Bank loans. Commercial loans represent 39.9%, agricultural loans
8.7%, construction loans 13.8%, consumer loans 13.7%, and residential real
estate 23.9%, 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 loan portfolio increased from
$46.8 million at March 31, 2003 to $68.3 million on March 31, 2004. Total
construction loans made during fiscal year 2004 were $107.2 million.
Additionally, commercial/agricultural loan production remained strong, with
the Spokane LPO originating $22.2 million in new loans, the Coeur d'Alene Loan
Center originating $27.9 million, and the Baker City Loan Center originating
$6.6 million. Total new commercial/agricultural loan origination for fiscal
year 2004 was $95.0 million. The commercial/agricultural loan portfolio
increased from $147.6 million on March 31, 2003 to $241.5 million on
March 31, 2004, an increase of 20.3% excluding the purchase of $63.9 million
in commercial/agricultural loans from Pioneer Bank. Notwithstanding the
commercial/agricultural loan portfolio increase, the residential real estate
loan portfolio decreased $6.7 million from March 31, 2003 to March 31, 2004, a
decrease of 12.0% excluding the purchase of residential real estate loans from
Pioneer Bank. The record pace of refinancing impacted the portfolio as
FirstBank no longer portfolios 30-year mortgage real estate loans. Total
residential real estate term loan originations were a record $137.2 million
during fiscal year 2004. Sold loan fee income, excluding impairment, totaled
$2.5 million at March 31, 2004 compared to $2.4 million at March 31, 2003.
The Spokane, Washington and Boise, Idaho Loan Centers are now fully staffed
with both commercial and residential real estate lenders, which when combined
with existing staff, positions FirstBank for continued loan growth," continued
Conklin.
"Deposit growth, excluding the purchased $256.3 million in deposits of
Pioneer Bank, was $20.4 million; an increase of 9.5% since last year, and
funding from core deposits continue to increase," said Moxley. "Core deposits
grew from $102.3 million at March 31, 2003 to $290.4 million at March 31, 2004
with the purchased $161.9 million in core deposits from Pioneer Bank, while
CDs decreased from $206.6 million to $200.6 million over the same time period
with the purchase of $94.5 million in CDs from Pioneer Bank. Core deposits
represent 59.1% of our total branch deposits. All of our deposit growth in
branches last year was in core deposits, which is our primary emphasis,"
continued Moxley. "Additionally, it is important to note that deposit growth
is focused on core demand deposits related primarily to commercial customers."
Other funding sources include Federal Home Loan Bank borrowings, as well as
brokered deposit markets.
Allowance for loan loss reserves increased from $3.4 million on
March 31, 2003 to $6.3 million on March 31, 2004. Total reserves are now 1.4%
of net loans as of March 31, 2004 versus 1.3% as of March 31, 2003. "Reserves
appropriately reflect portfolio loan allocations and the credit risk
associated with the slow economy," noted Conklin. "Specifically, provisions
were increased in fiscal year 2004 to reflect credit risk resulting from the
Pioneer Bank acquisition and continued slow economic growth."
"Asset quality is good and remains a high priority for FirstBank,"
continued Conklin. Total non-performing assets on March 31, 2004 were
$3.9 million, or 0.56% of total assets, compared with $1.8 million, or 0.55%
of total assets on March 31, 2003. Total non-performing assets increased by
$2.1 million over fiscal year ending March 31, 2003, reflecting $1.8 million
at March 31, 2003 compared to $3.9 million at March 31, 2004. Loan loss
allowances to non-performing assets were 161.0% on March 31, 2004 compared
with 188.3% on March 31, 2003. The non-performing assets increased with the
acquisition of Oregon Trail and continued economic diversity throughout the
market area.
Net charge-offs for the year ending March 31, 2004 were $358,000 compared
with $182,000 for the same period ending March 31, 2003. "We continue to
scrutinize our loan portfolio on a regular basis to assure that we maintain
credit quality," said Conklin.
FirstBank NW Corp.'s total assets increased 110.6% to $699.9 million on
March 31, 2004 compared to $332.4 million on March 31, 2003. Stockholders
equity on March 31, 2004 was $69.0 million compared with $30.1 million on
March 31, 2003. The tangible equity ratio was 7.6% at March 31, 2004 compared
to 9.0% a year ago. Tangible book value decreased to $17.33 per share on
March 31, 2004 compared to $23.24 per share last year, reflecting the
acquisition of Pioneer Bank. At its closing stock price of $25.81 per share
on April 26, 2004, shares were selling at just 148.9% of tangible book and
12.0 times fiscal year 2003 diluted earnings per share.
Reported net income for the fourth quarter ending March 31, 2004 was
$1.6 million compared to $777,000 for the same period one year ago; an
increase of 106.4%. Earnings per share (diluted) for the fourth quarter
ending March 31, 2004 was $0.55 per share compared to $0.58 per share for the
same period last year. "Earnings were negatively impacted by accounting for
mark to market investment premium, reduced FHLB dividend income, REO write
down, start-up costs for the Hayden Branch and other non-interest expense
timing," noted Moxley. "Adjusting for non-reoccurring expenses to the
quarter's net income would be approximately $1.7 million." Asset growth for
the fourth quarter was $16.2 million, or 2.4%.
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank Northwest is based in Clarkston, Washington. FirstBank Northwest
operates twenty branch locations in northern Idaho along the Idaho/Washington
border and in eastern Oregon, in addition to residential loan centers in
Lewiston, Coeur d'Alene, and Boise, Idaho, and Baker City, Oregon. Salomon
Smith Barney has investment centers in FirstBank's Coeur d'Alene, Idaho,
Clarkston and Liberty Lake, Washington, and Baker City, LaGrande, Pendleton
and Ontario, Oregon branches. FirstBank Northwest is known as the local
community bank, offering its customers highly personalized service in the many
communities it serves.
Certain matters in this News Release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements may relate to, among others,
expectations of the business environment in which FirstBank operates,
projections of future performance, including operating efficiencies, perceived
opportunities in the market, potential future credit experience and statements
regarding FirstBank's mission and vision. These forewarned-looking statements
are based upon current management expectations, and may, therefore, involve
risks and uncertainties. FirstBank's actual results, performance, and
achievements may differ materially from those suggested, expressed or implied
by forward-looking statements due to a wide range of actors including, but not
limited to, the general business environment, interest rates, the real estate
market in Washington, Idaho and Oregon, the demand for mortgage loans,
FirstBank's ability to successfully integrate the business of Oregon Trail,
the realization of expected cost savings or accretion to earnings because of
the acquisition of Oregon Trail, competitive conditions between banks and
non-bank financial service providers, regulatory changes, and other risks
detailed in the Company's reports filed with the Securities and Exchange
Commission, including its Annual Report on From 10-KSB for the fiscal year
ended March 31, 2003.
FIRSTBANK NW CORP
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except share and per share data)
Three Months Ended Fiscal Year Ended
March 31, March 31,
2004 2003 2004 2003
Interest Income $9,299 $5,080 $27,415 $20,575
Interest Expense 3,068 2,042 9,934 8,710
Provision for
Loan Losses (23) 236 395 1,033
Net Interest Income
After Provision for
Loan Losses 6,254 2,802 17,086 10,832
Non-Interest Income
Gain on sale of loans 412 596 2,068 2,128
Gain on sale of
securities, net 0 0 0 0
Mortgage Servicing Fees 14 42 77 184
Service fees
and charges 1,124 504 3,043 1,913
Commission and other 72 39 208 161
Total Non-Interest
Income 1,622 1,181 5,396 4,386
Non-Interest Expenses
Compensation and
Related Expenses 3,366 1,770 10,095 7,057
Occupancy 788 327 2,077 1,260
Other 1,472 781 4,469 3,076
Total Non-Interest
Expense 5,626 2,878 16,641 11,393
Income Tax Expense 646 328 1,483 1,053
Net Income $1,604 $777 $4,358 $2,772
Basic Earnings
per Share $0.56 $0.61 $2.26 $2.15
Diluted Earnings
per Share $0.55 $0.58 $2.15 $2.07
Weighted Average
Shares Outstanding
- Basic 2,863,292 1,277,582 1,925,804 1,286,204
Weighted Average
Shares Outstanding
- Diluted 2,933,774 1,336,102 2,024,352 1,344,272
Actual Shares
Issued 2,940,047 1,380,992 2,940,047 1,380,992
March 31, 2004 March 31, 2003
Total Assets $699,931 $332,398
Cash and Cash Equivalents $38,397 $24,741
Loans Receivable, net $464,368 $257,019
Mortgage-Backed Securities $77,027 $9,618
Investment Securities $38,502 $16,813
Stock in FHLB, at cost $12,506 $5,731
Deposits $491,035 $214,340
FHLB Advances & Other Borrowings $132,056 $81,816
Stockholders' Equity $69,031 $30,064
Tangible Book Value per Share (A) $17.33 $23.24
FASB 115 Adjustment after Taxes $984 $1,035
Tangible Equity/ Total Tangible Assets 7.57% 9.04%
Number of full-time equivalent Employees 247 137
(A) 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) 3/04 -- 79,149 shares and 3/03 -- 87,311 shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Fiscal Year Ended
March 31, March 31,
2004 2003 2004 2003
Return on Average
Assets 0.93% 0.95% 0.90% 0.87%
Return on Average
Tangible Equity 12.74% 10.35% 11.17% 9.49%
Average Tangible
Equity/Average
Tangible Assets 7.49% 10.35% 8.19% 9.16%
Average Equity/Average
Assets 10.04% 9.15% 9.71% 9.16%
Average Tangible
Equity/Average Loans 10.99% 11.81% 11.37% 12.00%
Efficiency Ratio (B) 68.90% 66.48% 70.44% 68.04%
Non-Interest Expenses/
Average Assets 3.26% 3.50% 3.43% 3.57%
Net Interest Margin (C) 4.27% 4.11% 4.17% 4.16%
Average Interest
Earning Assets/Average
Deposits and Other
Borrowed Funds 101.42% 115.88% 102.09% 114.96%
LOANS
(unaudited) (in thousands except share and per share data)
Fiscal Year Ended Fiscal Year Ended
March 31, 2004 March 31, 2003
LOAN ORIGINATIONS (D):
Residential loan centers $244,456 $206,806
Consumer loan centers 16,364 12,861
Agricultural loan centers 8,048 14,004
Commercial loan centers 86,929 64,399
Total Loan Origination $355,797 $298,070
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $113,281 $50,781
Construction 68,336 46,836
Agricultural 18,568 15,921
Commercial 106,935 68,125
Total real estate loans 307,120 181,663
Consumer and other loans:
Home equity 24,530 19,924
Agricultural operating 24,876 13,000
Commercial 91,097 50,603
Other consumer 43,402 7,843
Total consumer and other loans 183,905 91,370
Loans held for sale-residential
real estate 5,227 5,214
Total Loans Receivable $496,252 $278,247
Fiscal Year Ended Fiscal Year Ended
March 31, 2004 March 31, 2003
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $3,414 $2,563
Purchased $2,863 0
Provision for Loan Losses 395 1,033
Charge offs (Net of Recoveries) (358) (182)
Balance at End of Period $6,314 $3,414
Loan Loss Allowance / Net Loans 1.36% 1.33%
Loan Loss Allowance /
Non-Performing Loans 199.37% 272.90%
(B) Calcuation is non-interest expense divided by tax equivalent
non-interest income and net interest income.
(C) Calculation is tax equivalent net interest income divided by total
intererst-earning assets.
(D) Loan originations are based upon new production.
NON-PERFORMING ASSETS:
Fiscal Year Ended Fiscal Year Ended
March 31, 2004 March 31, 2003
Accruing Loans - 90 Days Past Due $0 $0
Non-accrual Loans 3,167 1,251
Total Non-performing Loans 3,167 1,251
Restructured Loans on Accrual 152 442
Real Estate Owned (REO) 552 120
Repossessed Assets 52 0
Total Non-performing Assets $3,923 $1,813
Total Non-performing
Assets/Total Assets 0.56% 0.55%
Loan and REO Loss Allowance as
a % of Non-Performing Assets 160.95% 188.31%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Three Months Ended Fiscal Year Ended
March 31, March 31,
2004 2003 2004 2003
Average Interest
Earning Assets:
Average Loans receivable:
Average Mortgage
Loans receivable $111,702 $51,788 $74,416 $55,975
Average Commercial
Loans receivable 192,634 120,267 150,557 109,559
Average Construction
Loans receivable 42,362 28,296 36,356 19,750
Average Consumer
Loans receivable 69,252 28,727 43,063 31,085
Average Agricultural
Loans receivable 45,045 29,608 37,547 30,894
Average unearned loan
fees and discounts,
allowance for loan
losses, and other (8,610) (4,348) (6,350) (3,814)
Total Average Loans
receivable, net 452,385 254,338 335,589 243,449
Average Loans Held
for Sale 5,766 5,698 7,584 6,483
Average Mortgage-backed
securities 79,542 10,113 35,869 10,832
Average Investment
securities 38,462 16,700 24,840 14,554
Average Other earning
assets 46,494 19,539 35,999 21,540
Total Average Interest
Earning Assets 622,649 306,388 439,881 296,858
Average Non-Interest
Earning Assets 68,437 22,072 44,684 21,880
Total Average Assets $691,086 $328,460 $484,565 $318,738
Average Interest
Bearing Liabilities:
Average Passbook,
NOW, and money
market accounts $224,630 $70,093 $137,025 $67,522
Average Certificate
of deposits 200,091 109,645 149,626 108,406
Average Advances from
FHLB and other 135,041 84,660 101,106 82,292
Total Average Interest
Bearing Liabilities 559,762 264,398 387,757 258,220
Average Non-Interest
Bearing Deposits 54,142 28,055 43,107 26,140
Average Deposits and
Other Borrowed Funds 613,904 292,453 430,864 284,360
Average Non-Interest
Bearing Liabilities 7,797 5,966 6,638 5,169
Total Average
Liabilities 621,701 298,419 437,502 289,529
Total Average Equity 69,385 30,041 47,064 29,209
Total Average
Liabilities and
Equity $691,086 $328,460 $484,566 $318,738
Total Tangible
Average Equity $50,368 $30,041 $39,030 $29,209
Interest Rate Yield
on Earning Assets 6.18% 6.78% 6.41% 7.10%
Interest Rate Expense
on Deposits and
Other Borrowed Funds 2.00% 2.79% 2.31% 3.06%
Interest Rate Spread 4.18% 3.99% 4.10% 4.04%
Net Interest Margin 4.27% 4.11% 4.17% 4.16%
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., +1-509-295-5100
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