LEWISTON, Idaho, July 19 /PRNewswire/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for
FirstBank Northwest, today reported solid growth as net income improved 47% to
$581,000, or $.41 per diluted share, in its first fiscal quarter ended
June 30, 2001, compared to $395,000, or $.26 per diluted share, in the like
quarter a year ago. Total assets grew 8% to $286 million, compared to
$264 million last year.
FirstBank also announced its Board of Directors has declared a regular
quarterly cash dividend of $.10 per common share. The dividend will be paid
August 24, 2001 to shareholders of record at August 10. This marks the 16th
regular quarterly cash dividend since FirstBank's conversion to the stock form
of ownership in July 1997.
"Net income is benefiting from an improved yield curve, reduced interest
expenses due to the Federal Reserve interest rate reductions, and improved
non-interest income primarily from gain on sale of loans," said
Clyde E. Conklin, President and Chief Executive Officer. "Additionally, we
took profits on sale of securities this past quarter, which we determined to
be optimal at this time," continued Conklin.
"Loans grew by 12% to $229 million on June 30, 2001 from $204 on
June 30, 2000. Commercial and agricultural loans now represent 47% of the
total portfolio as compared to 44% last year," said Larry K. Moxley,
Executive Vice President and Chief Financial Officer. "Based on the loan
portfolio growth, portfolio diversification, and the continued deterioration
of the economy, we considered it prudent to increase reserve allowances
accordingly." Moxley went on to note that "non-performing assets decreased
from $1.476 million on March 31, 2001 to $1.231 million on June 30, 2001. We
have increased allowances to non-performing assets from 152% on June 30, 2000
to 160% on June 30, 2001; asset quality remains strong as non-performing
assets to total loans remain essentially unchanged at .43% on June 30, 2001
compared to .41% on June 30, 2000.
"Funding loan growth continues to be a challenge," said Moxley. "However,
the declining interest rate environment and steepening yield curve improved
net interest income from $2.073 million for three months ending June 30, 2000
to $2.259 million for three months ending June 30, 2001. The net interest
margin improved to 3.91% on June 30, 2001 compared to 3.83% on June 30, 2000.
Non-interest income was $1,009,000 for the first quarter, compared to
$569,000 in the like quarter a year ago. "Increases in gain on sale of loans,
service charges and fees, and gain on sale of securities contributed to the
substantial increase over last year," said Moxley.
Non-interest, or operating expense, increased to $2.38 million for the
quarter, compared to $2.13 million a year ago. FirstBank's efficiency ratio
improved to 66.2% in its first fiscal quarter, compared to 77.7% for the like
quarter a year ago.
"Since July 1998, we have completed stock repurchases totaling 24% or
472,958 of FBNW shares, of which 4% have been reissued to fund employee stock
benefit plans, for a net repurchase of 20%," 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 $15.82 per share,
or 81% 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 Months Three Months
Ended Ended
June 30, 2001 June 30, 2000
Interest Income $5,277 $4,850
Interest Expense 2,789 2,675
Provision for Loan Losses 229 102
Net Interest Income After Provision for
Loan Losses 2,259 2,073
Non-Interest Income
Gain on sale of loans 353 173
Gain on sale of securities, net 175 0
Mortgage Servicing Fees 57 64
Service fees and charges 383 306
Commission and other 41 26
Total Non-Interest Income 1,009 569
Non-Interest Expenses
Compensation and Related Expenses 1,445 1,202
Occupancy 308 330
Other 627 601
Total Non-Interest Expense 2,380 2,133
Income Tax Expense 307 114
Net Income $581 $0
$395 $0
Basic Earnings per Share $0.42 $0.28
Diluted Earnings per Share $0.41 $0.26
Proforma Basic Cash Earnings
per Share (A) $0.44 $0.30
Proforma Diluted Cash Earnings
per Share (A) $0.43 $0.29
Weighted Average Shares Outstanding
- Basic 1,388,028 1,435,201
Weighted Average Shares Outstanding
- Diluted 1,431,654 1,495,001
Actual Shares Outstanding 1,510,792 1,616,633
June 30, March 31, June 30,
2001 2001 2000
Total Assets $285,601 $281,062 $263,848
Loans Receivable, net $229,434 $219,151 $204,105
Mortgage-Backed Securities $14,095 $20,039 $20,427
Investment Securities $12,431 $12,568 $11,620
Deposits $162,491 $157,797 $142,170
FHLB Advances & Other
Borrowings $91,838 $90,917 $88,367
Stockholders' Equity $27,665 $27,976 $26,022
Book Value per Share (B) $19.62 $19.39 $17.39
FASB 115 Adjustment after
Taxes $327 $600 ($734)
Equity/Total Assets 9.69% 9.95% 9.86%
Tier 1 Capital to
Average Assets 9.33% 9.18% 9.44%
Risk-based Capital to
Risk-Weighted Assets 14.46% 14.45% 13.25%
Number of full-time
equivalent Employees 114 113 111
(A) Cash earnings per share exclude MRDP 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)
6/01 --100,587 shares, 3/01 -- 104,225 shares, 6/00 -- 116,183 shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Months Fiscal Year Three Months
Ended Ended Ended
June 30, March 31, June 30,
2001 2001 2000
Return on Average Assets 0.83% 0.71% 0.62%
Return on Average Equity 8.27% 7.07% 6.06%
Average Equity/Average Assets 10.00% 10.00% 10.23%
Average Equity/Average Loans 12.66% 13.01% #DIV/0!
13.39%
Efficiency Ratio (C) 66.24% 72.64% 77.74%
Operating Expenses/
Average Assets 3.39% 3.27% 3.35%
Net Interest Margin 3.91% 3.83% 3.83%
Interest Earning Assets/
Interest Bearing Liabilities 105.99% 104.52% 104.17%
Three Months Fiscal Year Three Months
Ended Ended Ended
June 30, March 31, June 30,
2001 2001 2000
LOANS
(unaudited) (in thousands
except share and per share data)
LOAN ORIGINATIONS (D):
Residential loan centers $31,868 $70,175 $17,644
Consumer loan centers 5,097 17,287 5,158
Agricultural loan centers 5,936 22,011 5,963
Commercial loan centers 13,993 58,933 14,984
Total Loan Origination $56,894 $168,406 $43,749
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $77,708 $74,892 $75,265
Construction 9,371 8,028 8,324
Agricultural 16,175 15,383 16,092
Commercial 43,255 37,969 27,673
Total real estate loans 146,509 136,272 127,354
Consumer and other loans:
Home equity 27,959 27,323 25,286
Agricultural operating 13,136 10,938 10,961
Commercial 39,345 41,789 38,518
Other consumer 8,385 8,255 8,782
Total consumer and
other loans 88,825 88,305 83,547
Total Loans Receivable $235,334 $224,577 $210,901
Three Months Fiscal Year Three Months
Ended Ended Ended
June 30, March 31, June 30,
2001 2001 2000
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning
of Period $1,758 $1,604 $1,604
Provision for Loan Losses 229 303 102
Charge offs (Net of Recoveries) 18 149 61
Balance at End of Period $1,969 $1,758 $1,645
Loan Loss Allowance/
Net Loans 0.86% 0.80% 0.81%
Loan Loss Allowance/
Non-Performing Loans 163.27% 121.83% 215.03%
(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,
2001 2001 2000
Accruing Loans -
90 Days Past Due $125 $282 $0
Non-accrual Loans 1,081 1,161 765
Total Non-performing Loans 1,206 1,443 765
Restructured Loans on
Accrual 0 0 197
Real Estate Owned (REO) 25 33 119
Total Non-performing Assets $1,231 $1,476 $1,081
Total Non-performing Assets/
Total Assets 0.43% 0.53% 0.41%
Loan and REO Loss Allowance
as a % of Non-Performing
Assets 159.95% 119.11% 152.17%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Three Months Fiscal Year Three Months
Ended Ended Ended
June 30, March 31, June 30,
2001 2001 2000
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage Loans
receivable $76,127 $72,629 $71,768
Average Commercial Loans
receivable 79,932 66,492 59,764
Average Construction Loans
receivable 5,837 5,485 5,392
Average Consumer Loans
receivable 35,933 34,677 33,323
Average Agricultural Loans
receivable 26,506 27,258 26,435
Average unearned loan fees
and discounts, allowance
for loan losses, and other (2,312) (2,095) (1,960)
Total Average Loans
receivable, net 222,023 204,446 194,722
Average Mortgage-backed
securities 17,554 20,279 20,826
Average Investment securities 12,407 11,901 11,410
Average Other earning assets 11,599 11,479 10,012
Total Average Interest
Earning Assets 263,583 248,105 236,970
Average Non-Interest
Earning Assets 17,408 17,802 17,934
Total Average Assets $280,991 $265,907 $254,904
Average Interest
Bearing Liabilities:
Average Passbook, NOW,
and money market accounts $65,421 $63,486 $65,391
Average Certificate of
deposits 89,910 83,670 78,947
Average Advances from
FHLB and other 93,350 88,747 83,152
Total Average Interest
Bearing Liabilities 248,681 235,903 227,490
Average Non-Interest
Bearing Liabilities 4,210 3,408 1,342
Total Average Liabilities 252,891 239,311 228,832
Total Average Equity 28,100 26,596 26,072
Total Average Liabilities
and Equity $280,991 $265,907 $254,904
Interest Rate Yield on
Earning Assets 8.15% 8.51% 8.35%
Interest Rate Expense on
Interest Bearing Liabilities 4.50% 4.92% 4.70%
Interest Rate Spread 3.65% 3.59% 3.65%
Net Interest Margin 3.91% 3.83% 3.83%
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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