LEWISTON, Idaho, July 18 /PRNewswire-FirstCall/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for FirstBank
Northwest, today reported solid growth as net income improved 8.6% to
$631,000, or $.47 per diluted share, in its first fiscal quarter ended
June 30, 2002, compared to $581,000, or $.41 per diluted share, in the like
quarter a year ago, producing 14.6% in earnings per share growth.
FirstBank also announced its Board of Directors has declared a regular
quarterly cash dividend of $.12 per common share. The dividend will be paid
August 23, 2002 to shareholders of record at August 9, 2002. This marks the
20th regular quarterly cash dividend since FirstBank's conversion to the stock
form of ownership in July 1997.
"Net income is increasing based on loan growth during the past year with
$244.2 million in net loans as of June 30, 2002 compared with $229.4 million
at June 30, 2001, and an improved net interest margin," said Clyde E. Conklin,
President and Chief Executive Officer. "In addition, non-interest income
continues to remain strong, representing 27% of income before non-interest
expense and taxes," continued Conklin.
Non-interest income was $975,000 for the first quarter, compared to
$1,009,000 in the like quarter a year ago, which included $175,000 in
securities sales. "Increases in service charges, fees, and loan fee income
contributed to the increase over last year," said Larry K. Moxley, Executive
Vice President and Chief Financial Officer.
Non-interest expense, or operating expense, increased to $2.80 million for
the quarter, compared to $2.38 million a year ago. FirstBank's efficiency
ratio was 70.2% in its first fiscal quarter of 2003, compared to 66.2% for the
like quarter a year ago. Non-interest expenses are expected to increase as
Loan Production Offices are scheduled to be opened in Boise, Idaho and
Spokane, Washington in the first two fiscal quarters of 2003.
Total assets were $307.0 million at June 30, 2002, a 7.5% increase over
total assets of $285.6 million at June 30, 2001. "Asset growth for the
quarter ending June 30, 2002 was essentially flat due to reduced cash and
equivalents," said Conklin. "Net loan growth for the first fiscal quarter
ending June 30, 2002 was $6.0 million, or 2.5% over total net loans for the
quarter ending March 31, 2002."
Total branch deposits were $175.7 million on June 30, 2002 compared with
$154.8 million on June 30, 2001; a growth of 13.5%. Other funding, including
Federal Home Loan Bank borrowings and brokered deposits totaled $99.4 million
on June 30, 2002 compared to $99.5 million on June 30, 2001.
Allowance for loan and lease losses increased to $2.68 million on June 30,
2002 from $1.97 million on June 30, 2001; an increase of 36%. Total allowance
reserves represent 1.10% of net loans and 406.5% of non-performing assets.
Non-performing assets decreased to $1.076 million at June 30, 2002 compared to
$1.231 million at June 30, 2001. "It is essential that provisions adequately
reflect the credit risk in the portfolio and the non-performing assets
identified," said Moxley.
"Since July 1998, we have completed stock repurchases totaling 32% or
642,828 of FBNW shares, of which 4% have been reissued to fund employee stock
benefit plans, for a net repurchase of 28%," said Conklin. "The Board of
Directors authorized the repurchase of 153,000 shares on May 17, 2001, which
is currently underway."
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank Northwest is based in Lewiston, Idaho, and is known as the local
community bank, offering its customers highly personalized service in the many
communities it serves. FBNW shares traded earlier today at $18.55 per share,
or 86% of book value.
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 Three
Months Months
Ended Ended
June 30, June 30,
2002 2001
Interest Income $5,074 $5,277
Interest Expense 2,227 2,789
Provision for Loan Losses 209 229
Net Interest Income After Provision
for Loan Losses 2,638 2,259
Non-Interest Income
Gain on sale of loans 419 353
Gain on sale of securities, net 0 175
Mortgage Servicing Fees 47 57
Service fees and charges 460 383
Commission and other 49 41
Total Non-Interest Income 975 1,009
Non-Interest Expenses
Compensation and Related Expenses 1,689 1,445
Occupancy 327 308
Other 757 627
Total Non-Interest Expense 2,773 2,380
Income Tax Expense 209 307
Net Income $631 $581
Basic Earnings per Share $0.48 $0.42
Diluted Earnings per Share $0.47 $0.41
Proforma Basic Cash Earnings per Share (A) $0.51 $0.44
Proforma Diluted Cash Earnings per Share (A) $0.49 $0.43
Weighted Average Shares Outstanding- Basic 1,302,529 1,388,028
Weighted Average Shares Outstanding- Diluted 1,357,513 1,430,598
Actual Shares Outstanding 1,420,792 1,510,792
June 30, March 31, June 30,
2002 2002 2001
Total Assets $307,040 $307,840 $285,601
Cash and Cash Equivalents $16,345 $24,012 $12,557
Loans Receivable, net $244,155 $238,136 $229,434
Mortgage-Backed Securities $11,213 $11,433 $14,095
Investment Securities $13,091 $12,524 $12,431
Stock in FHLB, at cost $5,460 $5,380 $5,120
Deposits $191,488 $196,123 $162,491
FHLB Advances & Other Borrowings $83,518 $79,722 $91,838
Stockholders' Equity $28,625 $27,813 $27,665
Book Value per Share (B) $21.55 $20.72 $19.62
FASB 115 Adjustment after Taxes $719 $174 $327
Equity/ Total Assets 9.32% 9.03% 9.69%
Tier 1 Capital to Average Assets 8.72% 8.79% 9.33%
Risk-based Capital to Risk-Weighted
Assets 13.38% 13.47% 14.46%
Number of full-time equivalent Employees 132 122 114
(A) Cash earnings per share exclude MRDP expense that will continue until
September of 2002.
(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)
6/02 --92,229 shares, 3/02 -- 94,321 shares, 6/01 -- 100,587 shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Fiscal Three
Months Year Months
Ended Ended Ended
June 30, March 31, June 30,
2002 2002 2001
Return on Average Assets 0.83% 0.82% 0.83%
Return on Average Equity 8.93% 8.47% 8.27%
Average Equity/Average Assets 9.29% 9.73% 10.00%
Average Equity/Average Loans 11.92% 12.48% 12.66%
Efficiency Ratio (C) 70.19% 66.57% 66.24%
Operating Expenses / Average Assets 3.65% 3.39% 3.39%
Net Interest Margin 4.19% 3.96% 3.91%
Interest Earning Assets / Interest
Bearing Liabilities 113.43% 114.05% 105.99%
LOANS
(unaudited)(in thousands except share and per share data)
Three Fiscal Three
Months Year Months
Ended Ended Ended
June 30, March 31, June 30,
2002 2002 2001
LOAN ORIGINATIONS (D):
Residential loan centers $39,425 $112,785 $31,868
Consumer loan centers 4,681 16,138 5,097
Agricultural loan centers 9,472 25,229 5,936
Commercial loan centers 18,842 85,517 13,993
Total Loan Origination $72,420 $239,669 $56,894
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $66,268 $66,420 $77,708
Construction 23,443 9,870 9,371
Agricultural 16,541 16,264 16,175
Commercial 56,195 52,496 43,255
Total real estate loans 162,447 145,050 146,509
Consumer and other loans:
Home equity 24,142 24,832 27,959
Agricultural operating 15,449 12,289 13,136
Commercial 48,489 55,568 39,345
Other consumer 8,323 7,924 8,385
Total consumer and other loans 96,403 100,613 88,825
Total Loans Receivable $258,850 $245,663 $235,334
Three Fiscal Three
Months Year Months
Ended Ended Ended
June 30, March 31, June 30,
2002 2002 2001
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $2,563 $1,758 $1,758
Provision for Loan Losses 209 1,064 229
Charge offs (Net of Recoveries) (89) (259) (18)
Balance at End of Period $2,683 $2,563 $1,969
Loan Loss Allowance / Net Loans 1.10% 1.08% 0.86%
Loan Loss Allowance / Non-Performing
Loans 406.52% 433.67% 163.27%
(C) Calcuation is non-interest expense divided by tax equivalent
non-interest income and net interest income.
(D) Loan originations are based upon new production.
NON-PERFORMING ASSETS:
Three Fiscal Three
Months Year Months
Ended Ended Ended
June 30, March 31, June 30,
2002 2002 2001
Accruing Loans - 90 Days Past Due $0 $0 $125
Non-accrual Loans 660 591 1,081
Total Non-performing Loans 660 591 1,206
Restructured Loans on Accrual 285 107 0
Real Estate Owned (REO) 131 424 25
Total Non-performing Assets $1,076 $1,122 $1,231
Total Non-performing Assets/Total Assets 0.35% 0.36% 0.43%
Loan and REO Loss Allowance as a % of
Non-Performing Assets 249.35% 228.43% 159.95%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Three Fiscal Three
Months Year Months
Ended Ended Ended
June 30, March 31, June 30,
2002 2002 2001
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage Loans receivable $64,511 $71,426 $76,127
Average Commercial Loans receivable 103,634 87,022 79,932
Average Construction Loans receivable 10,359 6,659 5,837
Average Consumer Loans receivable 32,452 34,657 35,933
Average Agricultural Loans receivable 29,351 27,748 26,506
Average unearned loan fees and
discounts, allowance for loan
losses, and other (3,266) (2,659) (2,312)
Total Average Loans receivable,net 237,041 224,853 222,023
Average Mortgage-backed securities 11,322 14,036 17,554
Average Investment securities 12,630 12,448 12,407
Average Other earning assets 22,880 17,886 11,599
Total Average Interest Earning Assets 283,873 269,223 263,583
Average Non-Interest Earning Assets 20,230 19,110 17,408
Total Average Assets $304,103 $288,333 $280,991
Average Interest Bearing Liabilities:
Average Passbook, NOW, and money
market accounts $62,575 $53,960 $46,821
Average Certificate of deposits 105,888 98,701 89,910
Average Advances from FHLB and other 81,796 83,395 93,350
Total Average Interest Bearing
Liabilities 250,259 236,056 230,081
Average Non-Interest Bearing Deposits 21,201 19,752 18,600
Average Other Non-Interest Bearing
Liabilities 4,389 4,467 4,210
Total Average Liabilities 275,849 260,275 252,891
Total Average Equity 28,254 28,058 28,100
Total Average Liabilities and Equity $304,103 $288,333 $280,991
Interest Rate Yield on Earning Assets 7.33% 7.67% 8.15%
Interest Rate Expense on Interest
Bearing Liabilities 3.56% 4.23% 4.87%
Interest Rate Spread 3.77% 3.44% 3.28%
Net Interest Margin 4.19% 3.96% 3.91%
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., +1-208-746-9610
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