CLARKSTON, Wash., May 27 /PRNewswire-FirstCall/ -- FirstBank NW Corp.
(Nasdaq: FBNW), the holding company for FirstBank Northwest, today reported
fiscal year 2005 net income of $6.28 million and total assets of
$801.1 million, representing an increase of 44.1% in net income and 14.4% in
total assets. "The year was highlighted by exceptional growth from the
markets in Boise and Coeur d'Alene, Idaho and Spokane, Washington, which are
our targeted growth markets," said Clyde E. Conklin, President and Chief
Executive Officer. Total loans receivable grew 22.4%, from $459.1 million at
March 31, 2004 to $562.1 million at March 31, 2005. "Additionally," Conklin
noted, "the core processing system conversion was completed in December 2004,
and the network and other systems were fully integrated during the year, which
essentially completed the systems integration of Oregon Trail Financial Corp.,
and its subsidiary, Pioneer Bank, with FirstBank NW Corp., and its subsidiary,
FirstBank Northwest." The merger closed on October 31, 2003. Conklin went on
to note "the merger was large and complex, which required substantial
dedication of resources for a successful execution. We have essentially
rebuilt the Bank's systems, policies and processes in order to facilitate
future growth. Our major compliance initiative for fiscal year 2006 are the
provisions regarding internal control over financial reporting in the
Sarbanes-Oxley Act of 2002. We will also reinforce our compliance with Bank
Secrecy Act (BSA) and Customer Identification Program (CIP) regulations." It
is expected that FirstBank will become an accelerated filer as of
March 31, 2006. "We will remain focused on earnings growth and balance sheet
growth as we continue to implement these new requirements," stated Conklin.
Income was enhanced through increased net interest income from a growing
loan portfolio and a full year of combined operations after the
October 31, 2003 merger of Pioneer Bank. Net interest income, after provision
for loans losses, was $25.8 million for the year ended March 31, 2005,
compared to $17.1 million for the year ended March 31, 2004. Income was also
enhanced by a stable net interest margin of 4.38% on March 31, 2005, compared
to 4.28% on March 31, 2004. Non-interest income was $6.0 million for the year
ended March 31, 2005, compared to $5.5 million for the year ended
March 31, 2004. "While gain on sale of loans was down from $2.2 million for
the year ended March 31, 2004 to $1.1 million for the year ended
March 31, 2005, we did increase other fees, service charges, and other
non-interest income from $3.3 million for the year ended March 31, 2004 to
$4.9 million for the year ended March 31, 2005," said Larry K. Moxley, Chief
Financial Officer.
Non-interest expenses increased $6.4 million, or 38.1%, from $16.8 million
for fiscal year 2004 to $23.1 million for fiscal year 2005. Compensation and
benefits totaled $14.0 million, or 60.7% of total non-interest expense for the
fiscal year ended March 31, 2005 as compared to $10.1 million, or 60.2% of
total non-interest expense for the fiscal year ended March 31, 2004.
FirstBank's efficiency ratio improved from 68.9% for the year ended
March 31, 2004 to 65.9% for the year ended March 31, 2005 because net interest
income and non-interest income increased faster than non-interest expense.
Net income, after tax, for the year ended March 31, 2005 was
$6.28 million, or $2.09 per share on 2,997,630 diluted shares outstanding,
compared to net income of $4.36 million, or $2.12 per share on
2,055,635 diluted shares for the year ended March 31, 2004.
"We continue to make significant progress towards a balance sheet
structure typical to commercial banking," said Conklin. "The total loan
portfolio, including loans held for sale, is $575.8 million in which
commercial loans represent 46.3%, agricultural loans 7.3%, construction loans
12.0%, consumer loans 13.3%, residential real estate loans 20.4%, and loans
held for sale 0.7%. The construction loan portfolio increased from
$44.5 million at March 31, 2004 to $69.1 million at March 31, 2005. Total
construction loans originated during fiscal year 2005 were $171.6 million.
Additionally, commercial/agricultural loan production remained strong, with
the Spokane loan production office originating $22.4 million in new loans, the
Coeur d'Alene Loan Center originating $33.7 million, the Baker City Loan
Center originating $18.1 million, the Lewiston Loan Center originating
$49.5 million, and the Boise Loan Center originating $57.4 million. The Boise
Commercial Loan Center completed its first full year of operation on
March 31, 2005. Total new commercial/agricultural loan origination for fiscal
year 2005 was $181.1 million. The commercial and agricultural loan portfolio
increased from $241.5 million at March 31, 2004 to $308.6 million at
March 31, 2005, an increase of 27.8%. The residential real estate loan
portfolio increased $4.5 million, or 4.0%, from March 31, 2004 to
March 31, 2005. Total residential real estate term loan originations were
$102.2 million during fiscal year 2005. "FirstBank has added to its loan
portfolio all 10-year and 15-year first mortgage loans that it originated this
past year," noted Moxley.
"Deposit growth was $38.1 million for the year ended March 31, 2005, an
increase of 7.9% since last year, and funding from core deposits continues to
increase," said Moxley. Core deposits grew from $279.9 million at
March 31, 2004 to $301.5 million at March 31, 2005, while certificates of
deposit increased from $200.6 million to $217.2 million over the same period.
"Core deposits represent 58.1% of our total branch deposits," said Moxley.
"Additionally, it is important to note that deposit growth is focused on core
demand deposits related primarily to commercial customers," Moxley continued.
Other funding sources include Federal Home Loan Bank borrowings, as well as
brokered deposit markets.
Allowance for loan loss reserves increased from $6.3 million at
March 31, 2004 to $7.3 million at March 31, 2005. Total reserves are now
1.29% of net loans as of March 31, 2005 compared to 1.38% as of
March 31, 2004. "Reserves appropriately reflect portfolio loan allocations
and the credit risk associated with the current economy," said Conklin.
"Asset quality is good and remains a high priority for FirstBank,"
continued Conklin. Total non-performing assets at March 31, 2005 were
$2.8 million, or 0.35% of total assets, compared with $3.7 million, or 0.50%
of total assets, at March 31, 2004. The ratio of loan loss allowances to
non-performing assets was 258.1% at March 31, 2005 compared with 172.7% at
March 31, 2004. "Workout of non-performing assets and improvement in
economies throughout our market area has contributed to this improvement,"
said Conklin.
Net charge-offs for the year ended March 31, 2005 were $588,000 compared
with $358,000 for the year ended March 31, 2004. "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 14.4% to $801.1 million on
March 31, 2005 compared to $700.2 million on March 31, 2004. Stockholders'
equity on March 31, 2005 was $72.3 million compared with $69.3 million on
March 31, 2004. Tangible stockholder equity, which excludes goodwill and
other intangible assets, was $52.7 million on March 31, 2005 compared with
$48.3 million on March 31, 2004. The ratio of tangible equity to tangible
assets was 6.7% at March 31, 2005 compared to 7.1% a year earlier. Tangible
book value increased to $18.00 per share on March 31, 2005 compared to
$16.88 per share last year.
Reported net income for the fourth quarter ended March 31, 2005 was
$1.6 million compared to $1.6 million for the same period one year ago.
Earnings per share (diluted) for the fourth quarter ended March 31, 2005 was
$0.52 per share compared to $0.55 per share for the same period last year.
"Earnings growth for the period ending March 31, 2005 was impacted by system
and integration expense, reduced Federal Home Loan Bank dividend income, and
regulatory and audit expense," said Moxley. Asset growth for the fourth
quarter was $31.6 million, or 4.1%, or an annualized rate of 16.4%.
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank Northwest is based in Clarkston, Washington. FirstBank Northwest
operates 20 branch locations in Idaho, eastern Washington and eastern Oregon,
in addition to residential loan centers in Lewiston, Coeur d'Alene, Boise and
Nampa, Idaho, Spokane, Washington and Baker City, Oregon. Salomon Smith
Barney has investment centers in the Coeur d'Alene, Idaho, Clarkston and
Liberty Lake, Washington branches, and the Baker City, LaGrande 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 the Company operates,
projections of future performance, including operating efficiencies, perceived
opportunities in the market, potential future credit experience and statements
regarding the Company's mission and vision. These forward-looking statements
are based upon current management expectations, and may, therefore, involve
risks and uncertainties. The Company'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 factors 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,
competitive conditions between banks and non-bank financial service providers,
regulatory changes, costs of implementing additional securities requirements
and requirements of the Sarbanes-Oxley Act of 2002 and other risks detailed
in the Company's reports filed with the Securities and Exchange Commission,
including its Annual Report on Form 10-KSB for the fiscal year ended
March 31, 2004.
FIRSTBANK NW CORP
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except share and per share data)
Three Months Ended Fiscal Year Ended
March 31, March 31,
2005 2004 2005 2004
Interest Income $10,840 $9,299 $40,631 $27,415
Interest Expense 3,778 3,068 13,319 9,934
Provision for
Loan Losses 488 (23) 1,528 395
Net Interest Income
After Provision
for Loan Losses 6,574 6,254 25,784 17,086
Non-Interest Income
Gain on Sale of Loans 184 532 1,125 2,188
Service Fees
and Charges 1,010 1,138 4,504 3,120
Commission and Other 239 72 381 208
Total Non-Interest
Income 1,433 1,742 6,010 5,516
Non-Interest Expenses
Compensation and
Related Expenses 3,522 3,366 14,044 10,095
Occupancy 717 788 2,844 2,077
Other 1,616 1,592 6,261 4,590
Total Non-Interest
Expense 5,855 5,746 23,149 16,762
Income Tax Expense 578 646 2,367 1,482
Net Income $1,574 $1,604 $6,278 $4,358
Basic Earnings
per Share $0.54 $0.56 $2.17 $2.26
Diluted Earnings
per Share $0.52 $0.55 $2.09 $2.12
Weighted Average
Shares Outstanding
- Basic 2,920,832 2,863,292 2,896,307 1,925,804
Weighted Average
Shares Outstanding
- Diluted 2,997,761 2,933,774 2,997,630 2,055,635
Actual Shares Issued 2,998,595 2,940,047 2,998,595 2,940,047
March 31, 2005 March 31, 2004
Total Assets $801,122 $700,232
Cash and Cash Equivalents $41,801 $38,397
Loans Receivable, net $562,101 $459,114
Loans Held for Sale $3,999 $5,254
Mortgage-Backed Securities $61,904 $77,027
Investment Securities $48,334 $38,787
Stock in FHLB, at cost $12,789 $12,506
Deposits $518,676 $480,548
FHLB Advances & Other Borrowings $185,337 $132,056
Stockholders' Equity $72,311 $69,332
Tangible Book Value per Share (A) $18.00 $16.88
FASB 115 Adjustment after Taxes $149 $1,268
Tangible Equity/ Total Tangible Assets 6.74% 7.11%
Number of Full-Time Equivalent Employees 268 247
(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) 3/05 -- 70,793 shares and 3/04 -- 79,149 shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Fiscal Year Ended
March 31, March 31,
2005 2004 2005 2004
Return on Average
Assets 0.80% 0.93% 0.84% 0.90%
Return on Average
Tangible Equity 11.94% 12.74% 12.38% 11.17%
Average Tangible Equity/
Average Tangible Assets 6.88% 7.49% 7.01% 8.19%
Average Equity/Average
Assets 9.21% 10.04% 9.54% 9.71%
Average Tangible
Equity/Average Loans 9.65% 11.13% 10.02% 11.63%
Efficiency Ratio (B) 64.22% 67.41% 65.91% 68.88%
Non-Interest Expenses/
Average Assets 2.98% 3.26% 3.11% 3.46%
Net Interest Margin (C) 4.39% 4.36% 4.38% 4.28%
Average Interest
Earning Assets/Average
Deposits and Other
Borrowed Funds 99.06% 101.42% 99.89% 102.09%
LOANS
(unaudited) (in thousands except share and per share data)
Fiscal Year Ended Fiscal Year Ended
March 31, 2005 March 31, 2004
LOAN ORIGINATIONS (D):
Residential loan centers $273,786 $244,456
Consumer loan centers 45,844 16,364
Agricultural loan centers 12,149 8,048
Commercial loan centers 168,976 86,929
Total Loan Origination $500,755 $355,797
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential 117,541 $113,016
Construction 69,148 44,536
Agricultural 19,434 18,567
Commercial 173,757 122,132
Total real estate loans 379,880 298,251
Consumer and other loans:
Home equity 37,806 24,530
Agricultural operating 22,625 24,876
Commercial 92,780 75,878
Other consumer 38,724 43,425
Total consumer and other loans 191,935 168,709
Loans held for sale-residential real estate 3,999 5,254
Total Loans Receivable $575,814 $472,214
Fiscal Year Ended Fiscal Year Ended
March 31, 2005 March 31, 2004
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $6,314 $3,414
Purchased $0 $2,863
Provision for Loan Losses 1,528 395
Charge offs (Net of Recoveries) (588) (358)
Balance at End of Period $7,254 $6,314
Loan Loss Allowance / Net Loans 1.29% 1.38%
Loan Loss Allowance / Non-Performing Loans 661.86% 217.72%
(B) Calculation is non-interest expense divided by non-interest income
and tax equivalent net interest income.
(C) Calculation is tax equivalent net interest income divided by total
interest-earning assets.
(D) Loan originations are based upon new production.
NON-PERFORMING ASSETS:
Fiscal Year Ended Fiscal Year Ended
March 31, 2005 March 31, 2004
Accruing Loans - 90 Days Past Due $377 $0
Non-accrual Loans 719 2,900
Total Non-performing Loans 1,096 2,900
Restructured Loans on Accrual 1,094 152
Real Estate Owned (REO) 603 552
Repossessed Assets 18 52
Total Non-performing Assets $2,811 $3,656
Total Non-performing Assets/Total Assets 0.35% 0.50%
Loan and REO Loss Allowance as a % of
Non-Performing Assets 258.06% 172.70%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Three Months Ended Fiscal Year Ended
March 31, March 31,
2005 2004 2005 2004
Average Interest
Earning Assets:
Average Loans
receivable:
Average Mortgage
Loans receivable $119,041 $111,702 $117,016 $74,416
Average Commercial
Loans receivable 253,610 192,634 223,158 150,557
Average Construction
Loans receivable 64,232 42,362 53,857 36,356
Average Consumer
Loans receivable 76,468 69,252 74,413 43,063
Average Agricultural
Loans receivable 42,692 45,045 46,240 37,547
Average unearned loan
fees and discounts,
allowance for loan
losses, and other (9,351) (8,610) (8,631) (6,350)
Total Average Loans
receivable, net 546,692 452,385 506,053 335,589
Average Loans Held
for Sale 2,794 5,766 4,708 7,584
Average Mortgage-backed
securities 63,666 79,542 68,761 35,869
Average Investment
securities 48,495 38,462 46,438 24,840
Average Other
earning assets 37,877 46,494 38,317 36,000
Total Average Interest
Earning Assets 699,524 622,649 664,277 439,882
Average Non-Interest
Earning Assets 86,869 68,437 78,981 44,684
Total Average Assets $786,393 $691,086 $743,258 $484,566
Average Interest
Bearing Liabilities:
Average Passbook, NOW,
and money market
accounts $237,394 $224,630 $231,963 $137,025
Average Certificate
of deposits 206,811 200,091 200,980 149,626
Average Advances from
FHLB and other 190,337 135,041 158,235 101,106
Total Average Interest
Bearing Liabilities 634,542 559,762 591,178 387,757
Average Non-Interest
Bearing Deposits 71,644 54,142 73,825 43,107
Average Deposits and
Other Borrowed Funds 706,186 613,904 665,003 430,864
Average Non-Interest
Bearing Liabilities 7,779 7,797 7,327 6,638
Total Average
Liabilities 713,965 621,701 672,330 437,502
Total Average Equity 72,428 69,385 70,928 47,064
Total Average
Liabilities and
Equity $786,393 $691,086 $743,258 $484,566
Total Tangible
Average Equity $52,740 $50,368 $50,693 $39,030
Interest Rate Yield
on Earning Assets 6.55% 6.33% 6.38% 6.54%
Interest Rate Expense
on Deposits and Other
Borrowed Funds 2.14% 2.00% 2.00% 2.31%
Interest Rate Spread 4.41% 4.33% 4.38% 4.23%
Net Interest Margin 4.39% 4.36% 4.38% 4.28%
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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