LEWISTON, Idaho, July 21 /PRNewswire/ -- FirstBank Corp. (Nasdaq: FBNW),
the holding company for FirstBank Northwest, today reported net income
doubled, assets gained 26% and loans rose 25% in the first quarter of fiscal
1999.
Net income doubled to $451,000 or $.25 per share during the quarter ended
June 30, 1998, from $225,000 in the year-ago quarter. Net income was impacted
by a one-time loss of $57,000 (or $.02 per share) on the sale of a piece of
real estate owned for branch expansion in Coeur d'Alene that was not used
because a more favorable parcel became available.
Year-ago per share figures are not available because the bank was
operating in the mutual form and no shares were outstanding. FirstBank Corp.
converted to the stock form of ownership on July 1, 1997. The company's first
annual meeting as a public company will be held tomorrow in Clarkston, WA.
"Last year's conversion to stock ownership has afforded many
opportunities. We're especially delighted by the success of our lending teams
and the resulting growth in loan volumes," said Clyde E. Conklin, Chief
Executive Officer.
"Our emphasis on commercial, agricultural and real estate lending products
continues to pay off," he noted. "These lending products have higher net
interest margins than conventional residential lending. Our credit review
team works hard to ensure loan quality by carefully conducting the due
diligence necessary on every large loan we fund."
"Commercial real estate loans tripled from one year ago and grew 48% in
just the last quarter. Commercial non-real estate loans rose more than seven
times above year ago levels to $16.3 million. In general, real estate lending
products showed stronger quarter-to-quarter gains due to seasonal influences,
while consumer and other non-real estate loans showed stronger year-to-year
gains due to our longer term emphasis on those lines," Conklin added.
"Total loan originations for the first quarter of fiscal 1999 advanced
41% over the year ago quarter to $45.7 million. FirstBank originated
$37 million of loans during the preceding quarter," said Larry K. Moxley,
Executive Vice President and Chief Financial Officer. "Total loans receivable
rose 27% over the year before to $166.2 million."
Net interest income after loan loss provision rose 24% to $1.7 million
from $1.4 million one year ago quarter. Reflecting strong loan volume,
FirstBank added approximately $135,000 to loan loss reserves during the
quarter. In the first quarter a year ago, the bank added only $18,000 to its
reserve. Net interest margin rose to 4.25% for the quarter, compared to net
margin of 4.06% one year ago.
"We look forward to meeting with shareholders tomorrow," Conklin noted.
"FirstBank's conversion to a Washington-chartered savings bank in February has
increased our flexibility to grow both through acquisitions and new branch
openings. At the same time, we will always provide the finest community
banking service in our markets."
Residential real estate loans accounted for approximately 54% of
FirstBank's total loan portfolio, agricultural real estate and operating loans
were nearly 11%, construction loans were more than 6%, commercial real estate
and non-real estate loans totaled nearly 21%, and other consumer loans were 8%
of total loans receivable at the end of the first fiscal quarter.
"FirstBank also services a portfolio of loans for other investors that
totaled $142 million at June 30, 1998 and generated approximately $123,000 in
fee income for the quarter," Moxley noted.
Non-interest income gained 76% to $815,000 in the quarter just ended
compared to $463,000 one year ago because more loans were sold to the
secondary market during the first quarter of this year than in the year ago
period. Non-interest expense was $1.8 million for the quarter, compared to
$1.5 million one year ago.
FirstBank's efficiency ratio improved to 68.6% compared to 79.6% a year
ago. "Improving FirstBank's efficiency ratio is one of our primary goals,"
Conklin noted.
Total nonperforming assets declined to $678,000 or just 0.35% of total
assets at June 30, 1998, compared to $1.4 million or 1.15% the year before.
"High loan quality reflects our team's broad experience," Moxley said.
FirstBank Corp.'s assets advanced 26% to $194.4 million at
June 30, 1998, from $154.1 million one year ago. Reflecting the $19 million
raised in its conversion to stock form of ownership, shareholder equity was
$30.4 million compared to $11.3 million at June 30, 1997. Book value equaled
$16.53 per share and the equity to asset ratio more than doubled to 15.6% at
June 30, 1998.
FirstBank Corp. is the parent of FirstBank Northwest, which is
headquartered in Lewiston, Idaho at the northern end of Hell's Canyon.
Founded in 1920, the Bank converted from its charter as a federal stock
savings bank to a Washington State savings bank charter February 2, 1998.
FirstBank currently operates six branch locations along the Idaho/Eastern
Washington border -- in Lewiston, Orchards, Moscow, Grangeville, and
Coeur d'Alene, Idaho, and in Clarkston, Washington, across the Snake River
from Lewiston. FirstBank also has two residential loan centers located in
Lewiston and Coeur d'Alene. The Bank is known as the local community bank,
offering its customers highly personalized service in the many communities it
serves. FBNW shares closed at $22.38 per share yesterday.
Statements concerning future performance, developments or events,
concerning expectations regarding expansion opportunities, and any other
guidance on future periods, constitute forward-looking statements, which are
subject to a number of risks and uncertainties. These include regional
economic conditions, interest rate fluctuations, and government and regulatory
actions, which might cause actual results to differ materially from stated
expectations.
FINANCIAL HIGHLIGHTS
(unaudited)
(in thousands except per share)
First Quarter Ended
June 30,
1998 1997
Total Interest Income $3,585 $2,898
Interest Expense $1,745 $1,501
Provision for Loan Losses $135 $18
Net Interest Income After
Provision for Loan Losses $1,705 $1,379
Non-Interest Income $815 $463
Non-Interest Expense $1,821 $1,482
Income Tax Expense $248 $135
Net Income $451 $225
ProForma Basic & Diluted
Earnings Per Share $0.25 $NA
Weighted Average Shares
Outstanding 1,838,562 NA
June 30, March 31, June 30,
1998 1998 1997
Total Assets $194,432 $183,529 $154,143
Loans Receivable, net $156,665 $145,662 $125,427
Mortgage-Backed Securities $10,970 $11,390 $7,122
Investment Securities $4,927 $5,104 $5,199
Deposits $119,961 $114,495 $112,178
FHLB Advances $42,202 $35,656 $27,619
Shareholders' Equity $30,391 $30,008 $11,277
Book Value per Share $16.53 $16.40 $NA
Equity/Total Assets 15.60% 16.35% 7.31%
Spread
(yield, less cost of funds) 3.74% 3.79% 3.88%
Tier 1 Capital to Average Assets 10.73% 11.56% 7.77%
Risk-based Capital
to Risk-Weighted Assets 15.81% 18.05% 13.39%
Number of full-time
Equivalent Employees 98 95 88
FINANCIAL STATISTICS
(ratios annualized)
Quarter Ended Year Ended Quarter Ended
June 30, 1998 March 31, 1998 June 30, 1997
Return on Average Assets 0.97% 1.20% 0.62%
Return on Average Equity 5.93% 7.19% 8.00%
Average Equity/Average Assets 16.28% 16.70% 7.77%
Average Equity/Average Loans 20.32% 20.83% 9.42%
Efficiency Ratio 68.59% 63.46% 79.63%
(operating expense/revenue)
Operating Expense/Average Assets 3.90% 3.42% 4.09%
Net Interest Margin 4.25% 4.26% 4.06%
Interest Earning Assets/
Interest Bearing Liabilities 112.61% 115.95% 104.08%
LOANS
(unaudited)
(in thousands except per share)
Quarter Ended Year Ended Quarter Ended
June 30, 1998 March 31, 1998 June 30, 1997
LOAN ORIGINATIONS: $45,694 $140,322 $32,519
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $89,792 $87,985 $87,480
Construction $10,056 $ 7,966 $9,592
Agricultural $14,021 $14,602 $11,901
Commercial $18,412 $12,433 $6,686
Total real estate loans $132,281 $122,986 $115,659
Consumer and other loans:
Home equity $6,091 $6,175 $5,817
Agricultural operating $5,042 $2,305 $2,477
Commercial $16,332 $16,627 $2,264
Other consumer $6,430 $5,893 $4,967
Total consumer
and other loans $33,895 $31,000 $15,252
Total Loans Receivable $166,176 $153,986 $131,184
Quarter Ended Year Ended Quarter Ended
June 30, 1998 March 31, 1998 June 30, 1997
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $1,120 $974 $974
Provision for Loan Losses $136 $200 $18
Charge offs (Net of Recoveries) $21 $54 $1
Balance at End of Period $1,235 $1,120 $991
Loan Loss Allowance/Net Loans 0.79% 0.77% 0.79%
Loan Loss Allowance/
Non-Performing Loans 252.04% 245.61% 93.05%
NON-PERFORMING ASSETS: Quarter Ended Year Ended Quarter Ended
June 30, 1998 March 31, 1998 June 30, 1997
Accruing Loans - 90 Days Past Due $14 $2 $---
Non-accrual Loans $35 $454 $1,065
Total Non-performing Loans $49 $456 $1,065
Real Estate Owned (REO) $719 $883 $381
Total Non-performing Assets $678 $1,339 $1,446
Total Non-performing Assets/
Total Assets 0.35% 0.73% 1.15%
Loan and REO Loss Allowance
as a % of Non-Performing
Assets 160.81% 83.64% 68.53%
SOURCE FirstBank Corp.
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Related links:
http://www.firstbanknw.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 124037
CONTACT:
Larry K. Moxley, Exec. VP & CFO of FirstBank
Corp., 208-746-9610
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