LEWISTON, Idaho, April 29 /PRNewswire/ -- FirstBank Corp. (Nasdaq: FBNW),
the holding company for FirstBank Northwest, today reported net income rose
sharply, assets gained 35% and loans rose 29% in fiscal 1998 -- FirstBank's
first year as a public company.  Yesterday, FirstBank announced an increase in
its quarterly cash dividend to $.08 per share, payable May 21, 1998 to
shareholders of record May 7.
    Net income more than doubled to $541,000 or $.30 per share during its
fourth fiscal quarter, from $226,000 in the year-ago quarter.  Year-ago per
share figures are not available because the Bank was operating in the mutual
form and no shares were outstanding.  FirstBank Corp. converted to the stock
form of ownership on July 1, 1997.
    FirstBank reported net income advanced to $1.7 million or $.93 per share
for the year ended March 31, 1998, from net income of $649,000 in fiscal 1997.
Last year's results include a $584,000 non-interest expense ($415,000 after
tax) in the second fiscal quarter that represented FirstBank's share of an
industry-wide special assessment to recapitalize the Savings Association
Insurance Fund (SAIF).  SAIF is a part of the Federal Deposit Insurance
Corporation (FDIC).  Without the assessment, FirstBank's net income would have
been $1.1 million in fiscal 1997.
    "Throughout the year, our business growth has reflected the benefits of
our mutual-to-stock conversion," said Clyde E. Conklin, Chief Executive
Officer.  "Our emphasis on commercial, agricultural and real estate lending
products -- which have good net interest margins -- has increased.  We have
begun credit card/debit card systems and implemented a 24-hour voice response
system.  Further, by this fall, we will offer state-of-the-art online banking
services that offer customers in our remote Central Idaho/ Eastern Washington
market area the ability to pay bills from their home or office."
    FirstBank Northwest's Idaho branches are located in Lewiston, Orchards,
Moscow, Grangeville and Coeur d'Alene.  FBNW also has a branch in Clarkston,
Washington, across the Snake River from Lewiston.
    Net interest income after loan loss provision surged 55% to $1.7 million
in the fourth quarter from $1.1 million in the year ago quarter, and 45% to
$6.6 million for all of fiscal 1998 from $4.5 million for fiscal 1997.  The
increase in net interest income resulted primarily from the investment of
proceeds from FirstBank's stock offering.  The net interest margin rose to
4.26% for the fourth quarter, compared to net margin of 3.73% one year ago.
    "FirstBank's conversion to a Washington-chartered savings bank was
completed on February 2," Conklin noted.  "As a Washington-chartered savings
bank with offices in Washington and Idaho, our flexibility has grown to expand
through both acquisitions and new branch openings, while providing the finest
community banking service."
    "Lending experience has been exceptionally strong, with total loans
receivable up 30% to $154 million for the year," Larry K. Moxley, Executive
Vice President and Chief Financial Officer.  "Residential real estate loans
rose 14% to $88 million while home equity loans gained 25% to $6.2 million in
fiscal 1998.  Refinancings sparked mortgage lending during our fourth quarter,
contributing significantly to fee income.
    "Growth in commercial and agricultural lending reflects our expertise and
growing emphasis in those areas," Moxley added.  "Agricultural real estate
lending increased 26% to $14.6 million for the year although agricultural
operating loans actually declined slightly to $2.3 million because good crops
and farm prices in 1997 encouraged borrowers to pay down their loans quickly.
Commercial real estate loans more than doubled to $12.4 million while
commercial non-real estate loans soared to $16.6 million at
March 31, 1998 from less than $1 million one year ago."
    Residential real estate loans account for approximately 57% of FirstBank's
total loan portfolio, agricultural real estate and operating loans account for
nearly 11%, construction loans account for more than 5%, commercial loans
account for 19%, and consumer loans account for 8% of total loans receivable.
    FirstBank originated $37 million of loans during the fourth quarter of
fiscal 1998 compared to $21 million a year ago.  Loan originations totaled
$140.3 million during fiscal 1998 compared to $117.0 million last year.
"FirstBank also services a portfolio of loans for other investors that totaled
$136 million at March 31, 1998 and generated approximately $386,000 in fee
income for the year," Moxley noted.
    Non-interest income was $648,000 in the quarter just ended compared to
$565,000 one year ago; for fiscal 1998 non-interest income was $2.3 million
compared to $2.2 million the year before.
    Non-interest expense was $1.5 million in the fourth quarter of fiscal
1998, compared to $1.3 million in the year ago period.  FirstBank's efficiency
ratio improved to 63.5% for fiscal 1998 compared to 74.6% a year ago, despite
costs of the charter conversion, branch opening and staff increases.
    Total non-performing assets were $1.3 million or 0.73% of total assets at
March 31, 1998, compared to $1.4 million or 0.99% the year before.  "Excellent
service and high loan quality are always our top priorities," Conklin said.
    With the $19 million raised in its conversion to stock form of ownership,
FirstBank Corp.'s assets advanced 35% to $183.5 million at
March 31, 1998, from $137.7 million one year ago.  Shareholder equity was
$30.0 million compared to $11.0 million at March 31, 1997.  Book value equaled
$16.40 per share and the equity to asset ratio was 16.35% at March
31, 1998.  Prior to the just-announced dividend increase, FirstBank paid two
cash dividends of $.07 per common share each during fiscal 1998.
    FirstBank Corp. is the parent of FirstBank Northwest, which is
headquartered in Lewiston, Idaho at the northern end of Hell's Canyon.
Founded in 1920, the Bank converted from its charter as a federal stock
savings bank to a Washington State savings bank charter
February 2, 1998.  FirstBank currently operates six branch locations along the
Idaho/ Eastern Washington border, plus two residential loan centers located in
Lewiston and Coeur d'Alene, ID.  The Bank is known as the local community
bank, offering its customers highly personalized service in the many
communities it serves.  FBNW shares closed the trading day yesterday, April
28, at $21.25 per share.
    Statements concerning future performance, developments or events,
concerning expectations regarding expansion opportunities, and any other
guidance on future periods, constitute forward-looking statements, which are
subject to a number of risks and uncertainties.  These include regional
economic conditions, interest rate fluctuations and government and regulatory
actions which might cause actual results to differ materially from stated
expectations.
    NOTE:  This company is a client of Len Cereghino & Co. Corporate Investor
Relations.  FirstBank's press releases are available at no charge through PR
Newswire's Company News On-Call fax service.  For a menu of FirstBank press
releases or to retrieve a specific release, call 800-IRNEWS9, extension
124037, or http://www.prnewswire.com/cnoc/exec/menu?124037 on the Internet.

    FINANCIAL HIGHLIGHTS
    (unaudited)                    Fourth Quarter Ended   Fiscal Year Ended
    (in thousands except per share)      March 31,            March 31,
                                     1998       1997       1998        1997

    Total Interest Income           $3,472     $2,552     $13,320    $10,192
    Interest Expense                $1,695     $1,324      $6,550     $5,338
    Provision for Loan Losses          $57       $116        $200       $310
    Net Interest Income After
     Provision for Loan Losses      $1,720     $1,112      $6,570     $4,544
    Non-Interest Income               $648       $565      $2,282     $2,245
    Non-Interest Expense            $1,539     $1,338      $6,202     $5,293
     SAIF recapitalization charge      $--        $--         $--       $584
    Total Non-interest Expense      $1,539     $1,338      $6,202     $5,877
    Income Tax Expense                $288       $113        $944       $263
    Net Income                        $541       $226      $1,706       $649
    ProForma, Basic & Diluted
     Earnings Per Share              $0.30        $NA       $0.93        $NA
    Weighted Average Shares
     Outstanding                 1,836,034         NA   1,829,911         NA

                                                 March 31,       March 31,
                                                   1998             1997

    Total Assets                                 $183,529       $137,652
    Loans Receivable, net                        $145,662       $113,048
    Mortgage-backed securities                    $11,390         $4,880
    Investment Securities                          $5,104         $5,199
    Deposits                                     $114,495       $107,596
    FHLB Advances                                 $35,656        $13,922
    Shareholders' Equity                          $30,008        $11,011
    Book Value per Share                           $16.40            $NA
    Equity/Total Assets                            16.35%          8.00%
    Spread (yield, less cost of funds)              3.79%          3.69%
    Tier 2 Capital Ratio                           11.56%          8.02%
    Risk-based Capital Ratio                       18.05%         13.59%
    Number of full-time Equivalent Employees           95             87

    FINANCIAL STATISTICS           Fourth Quarter Ended    Fiscal Year Ended
    (ratios annualized)                  March 31,             March 31,
                                     1998       1997       1998       1997*

    Return on Average Assets         1.20%      0.69%       1.02%      0.50%
    Return on Average Equity         7.19%      8.13%       6.98%      5.99%
    Average Equity/Average Assets   16.70%      8.45%      14.63%      8.34%
    Average Equity/Average Loans    20.83%      9.98%      18.34%     10.20%
    Efficiency Ratio
    (operating expense/revenue)     63.46%     74.61%      68.25%     82.79%
    Operating Expense/Average Assets 3.42%      4.07%       3.70%      4.52%
    Net Interest Margin              4.26%      3.73%       4.31%      3.92%
    Interest Earning Assets/Interest
     Bearing Liabilities           115.95%    108.84%     112.54%    105.62%

    Fiscal 1997 results include the effect of the SAIF assessment.

    LOANS
    (unaudited) (in thousands except per share)      Fiscal Year Ended
                                                 March 31,       March 31,
                                                   1998             1997

    LOAN ORIGINATIONS:                           $140,322       $117,005
    LOAN PORTFOLIO ANALYSIS:
    Real estate loans:
     Residential                                  $87,985        $77,408
     Construction                                  $7,966        $11,861
     Agricultural                                 $14,602        $11,998
     Commercial                                   $12,433         $5,392
       Total real estate loans                   $122,986       $106,659
    Consumer and other loans:
     Home equity                                   $6,175         $4,956
     Agricultural operating                        $2,305         $2,722
     Commercial                                   $16,627           $947
     Other consumer                                $5,893         $3,225
       Total consumer and other loans             $31,000        $11,850
    Total Loans Receivable                       $153,986       $118,509

                                                     Fiscal Year Ended
                                                 March 31,       March 31,
                                                   1998             1997

    ALLOWANCE FOR LOAN LOSSES:
    Balance at Beginning of Period                   $974           $701
    Provision for Loan Losses                        $200           $310
    Charge offs (Net of Recoveries)                   $54            $37
    Balance at End of Period                       $1,120           $974
    Loan Loss Allowance/Net Loans                   0.77%          0.71%
    Loan Loss Allowance/Non-Performing Loans      245.61%         86.58%

    NON-PERFORMING ASSETS:
                                                 March 31,       March 31,
                                                   1998             1997

    Accruing Loans - 90 Days Past Due                  $2             $0
    Non-accrual Loans                                $454         $1,125
    Total Non-performing Loans                       $456         $1,125
    Real Estate Owned (REO)                          $883           $234
    Total Non-performing Assets                    $1,339         $1,359
    Total Non-performing Assets/Total Assets        0.73%          0.99%
    Loan and REO Loss Allowance as
     a % of Non-Performing Assets                  83.64%         71.67%

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