LEWISTON, Id., July 20 /PRNewswire/ -- FirstBank NW Corp. (Nasdaq: FBNW),
the holding company for FirstBank Northwest, today reported solid growth as
net income improved 35% to $395,000, or $.26 per diluted share, in its first
fiscal quarter ended June 30, 2000, compared to $292,000, or $.17 per diluted
share, in the like quarter a year ago. Not including one-time charges related
to computer conversions, earnings for the first fiscal quarter of last year
would have been $.24 per diluted share.
FirstBank also announced its Board of Directors has declared a regular
quarterly cash dividend of $.09 per common share. The dividend will be paid
August 25, 2000 to shareholders of record at August 11. This marks the 12th
regular quarterly cash dividend since FirstBank's conversion to the stock form
of ownership in July 1997.
"We're starting fiscal year 2001 right on target," said Clyde E. Conklin,
Chief Executive Officer. "Our first quarter results reflect the myriad
investments we made over the last year, especially new service offerings. Our
continued confidence is evidenced by the 12th consecutive cash dividend
declared by the board.
"Total loans receivable rose 15% from last year, while loan originations
were up 9% from a year ago," continued Conklin. "Much of the growth is a
direct result of focusing our efforts on commercial and agricultural loans."
Total loans receivable were $211 million, compared to $184 million at
June 30, 1999.
"Commercial and agricultural loans have jumped to represent over 44% of
our total loan portfolio, as compared to 38% a year ago," added
Larry K. Moxley, Executive Vice President and Chief Financial Officer.
"Consumer loans remained at 16% of the portfolio while construction loans
decreased to 4% from 5%. Residential real estate loans now account for 36% of
the total portfolio, down from 40% for the prior year.
"Our asset quality remains high with this strong loan growth as
non-performing assets are 0.41% of assets at June 30, 2000," said Moxley.
"We believe the loan loss allowance is adequate at 215% of non-performing
loans and 0.81% of total loans in our portfolio.
"Our strong growth in lending has outpaced our deposit growth, so our
borrowings from the FHLB have increased. This has caused our net interest
margin to slip," continued Moxley. Net interest income after the provision
for loan losses was $2.1 million for the first quarter, compared to
$2.0 million in the year ago quarter. The net interest margin for the quarter
was 3.83% compared to 4.35% a year ago."
Non-interest income was $569,000 for the first quarter, compared to
$567,000 in the like quarter a year ago. "Increases in service charges and
fees have offset the reduced fee income from sold loans," said Moxley.
Non-interest, or operating, expense declined slightly to $2.1 million for the
quarter, compared to $2.2 million a year ago. FirstBank's efficiency ratio
improved to 77.7% compared to 86.0% a year ago.
FirstBank Corp.'s assets increased 20% to $264 million at June 30, 2000,
from $220 million a year ago. At the end of June stockholders' equity was
$26.0 million and the equity to asset ratio was 10.2% compared to 12.8% a year
ago. Book value increased to $17.39 per share at June 30, 2000, from $16.35 a
year ago.
"We don't believe the fair value of our stock is being reflected by the
marketplace," said Conklin. "Since July 1998, we have completed stock
repurchases totaling 22%, or 446,000 of FBNW shares, of which 4% has been
reissued to fund employee stock benefit plans, for a net repurchase of 18%."
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank NW is based in Lewiston, Idaho at the northern end of Hell's Canyon.
With the opening of its Liberty Lake branch, FirstBank NW operates eight
branch locations in northern Idaho and along the Idaho/Washington border, in
addition to residential loan centers in Lewiston and Coeur d'Alene, Idaho.
Salomon Smith Barney recently placed investment centers in FirstBank NW's
downtown Lewiston and Coeur d'Alene branches. FirstBank NW 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
$11.75 per share.
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.
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except share and per share data)
Three Months Ended
June 30,
2000 1999
Interest Income $4,850 $4,077
Interest Expense 2,675 1,903
Provision for Loan Losses 102 134
Net Interest Income
After Provision for
Loan Losses 2,073 2,041
Non-Interest Income 569 567
Non-Interest Expense 2,133 2,153
Income Tax Expense 114 163
Net Income $395 $292
Basic Earnings per Share $0.28 $0.18
Diluted Earnings per Share $0.26 $0.17
Weighted Average Shares
Outstanding-Basic 1,435,201 1,599,984
Weighted Average Shares
Outstanding-Diluted 1,495,001 1,679,334
June 30, 2000 March 31, 2000 June 30,1999
Total Assets $263,848 $247,898 $220,478
Loans Receivable, net $204,105 $187,664 $177,841
Mortgage-Backed Securities $20,427 $21,225 $11,620
Investment Securities $11,620 $11,335 $7,386
Deposits $142,170 $144,907 $136,354
FHLB Advances $88,367 $74,578 $54,481
Stockholders' Equity $26,022 $25,866 $27,200
Book Value per Share $17.39 $17.30 $16.35
Equity/ Total Assets 9.86% 10.43% 12.35%
Spread 3.64% 3.84% 3.99%
Tier 1 Capital to
Average Assets 9.44% 10.00% 10.64%
Risk-based Capital to
Risk-Weighted Assets 13.50% 13.60% 14.88%
Number of full-time
Equivalent Employees 111 111 108
FINANCIAL STATISTICS
(ratios annualized)
Three Months Year Three Months
Ended Ended Ended
June 30, 2000 March 31, 2000 June 30,1999
Return on Average Assets 0.62% 0.75% 0.55%
Return on Average Equity 6.06% 6.36% 4.29%
Average Equity/Average Assets 10.23% 11.82% 12.81%
Average Equity/Average Loans 13.39% 15.11% 15.85%
Efficiency Ratio 77.74% 74.38% 86.05%
(operating expenses/revenue)
Operating Expenses/Average
Assets 3.35% 3.60% 4.05%
Net Interest Margin 3.83% 4.16% 4.35%
Interest Earning Assets/
Interest Bearing
Liabilities 104.17% 107.95% 109.64%
LOANS
(unaudited) (in thousands except share and per share data)
Three Months Year Three Months
Ended Ended Ended
June 30, 2000 March 31, 2000 June 30,1999
LOAN ORIGINATIONS: 43,958 132,885 40,318
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $75,265 $75,464 $72,765
Construction 8,324 4,150 9,264
Agricultural 16,092 15,819 16,781
Commercial 27,673 24,988 20,969
Total real estate loans $127,354 $120,421 $119,779
Consumer and other loans:
Home equity $25,286 $23,895 $20,442
Agricultural operating 10,961 7,652 7,367
Commercial 38,518 32,800 25,488
Other consumer 8,782 8,264 10,496
Total consumer and
other loans $83,547 $72,611 $63,793
Total Loans Receivable $210,901 $193,032 $183,572
Three Months Year Three Months
Ended Ended Ended
ALLOWANCE FOR LOAN
LOSSES: June 30, 2000 March 31, 2000 June 30,1999
Balance at Beginning
of Period $1,604 $1,361 $1,361
Provision for Loan Losses $102 $287 $134
Charge offs (Net of
Recoveries) $61 $44 $17
Balance at End of Period $1,645 $1,604 $1,478
Loan Loss Allowance/
Net Loans 0.81% 0.83% 0.83%
Loan Loss Allowance/
Non-Performing Loans 215.03% 280.42% 497.64%
NON-PERFORMING ASSETS:
Three Months Year Three Months
Ended Ended Ended
June 30, 2000 March 31, 2000 June 30,1999
Accruing Loans -
90 Days Past Due $-- $-- $4
Non-accrual Loans $765 $572 $293
Total Non-performing Loans $765 $572 $297
Restructured Loans on Accrual $197 $198 $200
Real Estate Owned (REO) $119 $44 $44
Total Non-performing
Assets $1,081 $814 $541
Total Non-performing
Assets/Total Assets 0.41% 0.33% 0.25%
Loan and REO Loss Allowance
as a % of Non-
Performing Assets 152.17% 194.42% 273.20%
SOURCE FirstBank NW Corp.
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Related links:
http://www.firstbanknw.com
Company News On-Call:
http://www.prnewswire.com/comp/124037.html or fax,
800-758-5804, ext. 124037
CONTACT:
Larry K. Moxley, Exec. VP & CFO of FirstBank
NW Corp., 208-746-9610
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