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 23.4% to $779,000, or $.58 per diluted
share, in its first fiscal quarter ended June 30, 2003, compared to $631,000,
or $.47 per diluted share, in the like quarter a year ago, producing 23.4% in
earnings per share growth.
FirstBank also announced its Board of Directors has declared a regular
quarterly cash dividend of $.15 per common share. The dividend will be paid
August 22, 2003 to shareholders of record at August 8, 2003. This marks the
24th 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
$265.0 million in net loans as of June 30, 2003 compared with $244.2 million
at June 30, 2002, 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 32.7% of income before non-interest
expense and taxes compared to the like quarter a year ago of 27.0%."
Non-interest income was $1,390,000 for the first quarter, compared to
$975,000 in the like quarter a year ago. "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 $3.2 million for
the quarter, compared to $2.8 million a year ago. FirstBank's efficiency
ratio was 69.0% in its first fiscal quarter of 2004, compared to 70.2% for the
like quarter a year ago. Non-interest expenses are expected to remain at this
level reflecting the addition of staff for the loan production offices in
Boise, Idaho and Spokane, Washington, and the additional fixed cost of branch
remodels and construction of the new Clarkston, Washington branch facility.
Total assets were $344.2 million at June 30, 2003, a 12.1% increase over
total assets of $307 million at June 30, 2002. "Asset growth for the quarter
ending June 30, 2003 was $11.8 million or 3.5% growth over the March 31, 2002
quarter end which was primarily driven by continued loan growth," said
Conklin. "Net loan growth for the first fiscal quarter ending June 30, 2003
was $7.9 million, or 3.1% over total net loans for the quarter ending
March 31, 2003."
Total branch deposits were $204.1 million on June 30, 2003 compared with
$175.7 million on June 30, 2002; a growth of 16.2%. Other funding included
Federal Home Loan Bank borrowings and brokered deposits totaling $103.3
million on June 30, 2003 compared to $99.3 million on June 30, 2002.
Allowance for loan and lease losses increased to $3.59 million on June 30,
2003 from $2.68 million on June 30, 2002; an increase of 34%. Total
allowance reserves represent 1.35% of net loans and 208% of non-performing
assets. Non-performing assets increased to $2.347 million at June 30, 2003
compared to $1.076 million at June 30, 2002. "It is essential that provisions
adequately reflect the credit risk in the portfolio and the non-performing
assets identified, therefore we continue to add to reserves," said Moxley.
"Charge-offs for the quarter were a very moderate $2,000 compared to $89,000
for the like quarter a year ago." Non-performing assets increased $534,000
over the last quarter since fiscal year end March 31, 2003. "The increase
reflects a cross-section of credit risks representative of business sectors
throughout FirstBank's market area," noted Conklin. "While we focus on a
natural resource-based industry, which is the predominant sector of our local
economies, we are also identifying increased stress in other business sectors
as well as residential mortgages and consumer loans. Conklin continued by
stating, "allowances for loan losses remains very adequate for the level of
non-performing assets. It is imperative that we stay focused on management of
credit risk bank wide. A new Credit Administrator position has recently been
authorized and filled to increase focus on proper identification and
evaluation of the Bank's credit risk, especially considering the larger size
bank after the acquisition of Pioneer Bank," stated Conklin.
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 closed at $28.90 per share, or 122% of
book value.
The merger application to acquire Oregon Trail Financial Corp. is
progressing in accordance with plan and is expected to close in late September
or early October 2003.
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 Months Three Months
Ended Ended
June 30, June 30,
2003 2002
Interest Income $5,097 $5,074
Interest Expense 2,056 2,227
Provision for Loan Losses 177 209
Net Interest Income After Provision for
Loan Losses 2,864 2,638
Non-Interest Income
Gain on sale of loans 780 419
Gain on sale of securities, net 0 0
Mortgage Servicing Fees 30 47
Service fees and charges 547 460
Commission and other 33 49
Total Non-Interest Income 1,390 975
Non-Interest Expenses
Compensation and Related Expenses 1,920 1,689
Occupancy 351 327
Other 877 757
Total Non-Interest Expense 3,148 2,773
Income Tax Expense 327 209
Net Income $779 $631
Basic Earnings per Share $0.61 $0.48
Diluted Earnings per Share $0.58 $0.47
Proforma Basic Cash Earnings per Share (A) $0.64 $0.51
Proforma Diluted Cash Earnings per Share (A) $0.60 $0.49
Weighted Average Shares
Outstanding - Basic 1,280,984 1,302,529
Weighted Average Shares
Outstanding - Diluted 1,351,654 1,357,513
Actual Shares Issued 1,284,112 1,420,792
June 30, 2003 March 31, 2003 June 30, 2002
Total Assets $344,193 $332,398 $307,040
Cash and Cash Equivalents $26,609 $24,741 $16,345
Loans Receivable, net $264,963 $257,019 $244,155
Mortgage-Backed Securities $8,674 $9,618 $11,213
Investment Securities $17,469 $16,813 $13,091
Stock in FHLB, at cost $5,806 $5,731 $5,460
Deposits $229,182 $214,340 $191,488
FHLB Advances & Other
Borrowings $78,237 $81,816 $83,518
Stockholders' Equity $31,010 $30,064 $28,625
Book Value per Share (B) $23.70 $23.24 $21.55
FASB 115 Adjustment after Taxes $1,141 $1,035 $676
Equity/ Total Assets 9.01% 9.04% 9.32%
Tier 1 Capital to Average Assets 8.35% 8.41% 8.72%
Risk-based Capital to
Risk-Weighted Assets 12.95% 13.11% 13.38%
Number of full-time
equivalent Employees 137 137 132
(A) Cash earnings per share exclude management recognition and development
plan expense that will continue until September of 2003.
(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)
6/03 -- 85,418, 3/03 -- 87,311 shares, and 6/02 -- 92,229 shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Months Fiscal Year Three Months
Ended Ended Ended
June 30, March 31, June 30,
2003 2003 2002
Return on Average Assets 0.93% 0.87% 0.83%
Return on Average Equity 10.14% 9.49% 8.93%
Average Equity/Average Assets 9.19% 9.16% 9.29%
Average Equity/Average Loans 12.15% 12.00% 12.15%
Efficiency Ratio (C) 69.04% 68.04% 70.19%
Operating Expenses/
Average Assets 3.77% 3.57% 3.65%
Net Interest Margin 4.10% 4.16% 4.19%
Average Interest Earning Assets/
Average Deposits and
Other Borrowed Funds 115.42% 114.96% 113.43%
Three Months Fiscal Year Three Months
Ended Ended Ended
LOANS June 30, 2003 March 31, 2003 June 30, 2002
(unaudited)(in thousands except share and per share data)
LOAN ORIGINATIONS (D):
Residential loan centers $71,448 $206,806 $39,425
Consumer loan centers 1,890 12,861 4,681
Agricultural loan centers 3,193 27,377 9,472
Commercial loan centers 34,291 96,525 18,842
Total Loan Origination $110,822 $343,569 $72,420
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $48,195 $50,781 $60,164
Construction 50,970 46,836 23,443
Agricultural 15,692 15,921 16,541
Commercial 70,200 68,125 56,195
Total real estate loans 185,057 181,663 156,343
Consumer and other loans:
Home equity 16,557 19,924 24,142
Agricultural operating 15,771 13,000 15,449
Commercial 54,620 50,603 48,489
Other consumer 7,349 7,843 8,323
Total consumer and
other loans 94,297 91,370 96,403
Loans held for sale-residential
real estate 10,590 5,214 6,104
Total Loans Receivable $289,944 $278,247 $258,850
Three Months Fiscal Year Three Months
Ended Ended Ended
June 30, March 31, June 30,
2003 2003 2002
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $3,414 $2,563 $2,563
Provision for Loan Losses 177 1,033 209
Charge offs (Net of Recoveries) (2) (182) (89)
Balance at End of Period $3,589 $3,414 $2,683
Loan Loss Allowance/Net Loans 1.35% 1.33% 1.10%
Loan Loss Allowance/
Non-Performing Loans 208.06% 272.90% 406.52%
(C) Calculation 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 Months Fiscal Year Three Months
Ended Ended Ended
June 30, March 31, June 30,
2003 2003 2002
Accruing Loans - 90 Days
Past Due $0 $0 $0
Non-accrual Loans 1,725 1,251 660
Total Non-performing Loans 1,725 1,251 660
Restructured Loans on Accrual 502 442 285
Real Estate Owned (REO) 120 120 131
Total Non-performing Assets $2,347 $1,813 $1,076
Total Non-performing Assets/
Total Assets 0.68% 0.55% 0.35%
Loan and REO Loss Allowance as
a % of Non-Performing Assets 152.92% 188.31% 249.35%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Three Months Fiscal Year Three Months
Ended Ended Ended
June 30, March 31, June 30,
2003 2003 2002
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage Loans
receivable $48,929 $55,975 $59,933
Average Commercial Loans
receivable 121,386 109,559 103,634
Average Construction Loans
receivable 31,682 19,750 10,359
Average Consumer Loans
receivable 25,977 31,085 32,452
Average Agricultural Loans
receivable 29,738 30,894 29,351
Average unearned loan fees
and discounts, allowance for
loan losses, and other (4,667) (3,814) (3,266)
Total Average Loans
receivable, net 253,045 243,449 232,463
Average Loans Held for Sale 8,202 6,483 4,578
Average Mortgage-backed
securities 9,327 10,832 11,322
Average Investment
securities 17,135 14,554 12,630
Average Other earning assets 21,239 21,540 22,880
Total Average Interest
Earning Assets 308,948 296,858 283,873
Average Non-Interest
Earning Assets 25,453 21,880 20,230
Total Average Assets $334,401 $318,738 $304,103
Average Interest Bearing Liabilities:
Average Passbook, NOW, and
money market accounts $73,903 $67,522 $62,575
Average Certificate of
deposits 113,355 108,406 105,888
Average Advances from FHLB
and other 80,405 82,292 81,796
Total Average Interest
Bearing Liabilities 267,663 258,220 250,259
Average Non-Interest Bearing
Deposits 30,345 26,140 21,201
Average Deposits and
Other Borrowed Funds 298,008 284,360 271,460
Average Non-Interest Bearing
Liabilities 5,658 5,169 4,389
Total Average Liabilities 303,666 289,529 275,849
Total Average Equity 30,735 29,209 28,254
Total Average Liabilities
and Equity $334,401 $318,738 $304,103
Interest Rate Yield on
Earning Assets 6.77% 7.10% 7.33%
Interest Rate Expense on Deposits
and Other Borrowed Funds 3.07% 3.37% 3.56%
Interest Rate Spread 3.70% 3.73% 3.77%
Net Interest Margin 4.10% 4.16% 4.19%
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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