CLARKSTON, Wash., July 22 /PRNewswire-FirstCall/ -- FirstBank NW Corp.
(Nasdaq: FBNW), the holding company for FirstBank Northwest, today reported
solid growth as net income improved 99% to $1.55 million, or $0.52 per diluted
share, in its first fiscal quarter ended June 30, 2004. This compares to net
income of $779,000, or $0.58 per diluted share, in the comparable quarter a
year ago.
FirstBank also announced that its Board of Directors has declared a
regular quarterly cash dividend of $0.17 per common share. The dividend will
be paid on August 25, 2004, to shareholders of record as of the close of
business on August 11, 2004. This marks the Company's 28th regular quarterly
cash dividend since it became a publicly traded company in July 1997.
"The increase in net income is attributable to loan growth and the
acquisition of Pioneer Bank during the past year with net loans increasing to
$493.1 million as of June 30, 2004 compared to $265.0 million at June 30,
2003, and an improved net interest margin of 4.31%," said Clyde E. Conklin,
President and Chief Executive Officer. Mr. Conklin noted "in addition,
non-interest income continues to remain strong, representing 20.8% of net
income before non-interest expense, provision for loan losses, and taxes
compared to the comparable quarter a year ago of 31.4%." Larry K. Moxley,
Executive Vice President and Chief Financial Officer added that the Company's
"net interest income also was affected by reserve allocations driven by new
loan growth." The provision for loan losses for the quarter ended June 30,
2004 was $376,000, compared to $177,000 in the comparable quarter a year ago.
The increase in the provision for loan losses is attributable to loan growth
during the year.
Non-interest income was $1.72 million for the first fiscal quarter,
compared to $1.39 million in the comparable quarter a year ago. "Increases in
service charges, fees, and loan fee income contributed to the increase in
non-interest income over last year," said Moxley.
Non-interest expense, or operating expense increased $2.6 million to
$5.7 million for the quarter ended June 30, 2004, compared to $3.1 million a
year ago, which reflects the increase in non-interest expenses related to the
acquisition of Pioneer Bank. FirstBank's efficiency ratio was 66.8% in its
first fiscal quarter of 2004, compared to 69.0% 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, the new branches in Hayden and Boise, Idaho, and the
additional fixed cost of branch remodels and construction of the new
Clarkston, Washington branch facility.
Total assets were $732.8 million at June 30, 2004, an increase of $388.6
million, or 113%, from total assets of $344.2 million at June 30, 2003.
Conklin noted that, "in addition to growth through the acquisition of Pioneer
Bank, FirstBank is also continuing to produce target asset growth through new
loan originations. Total assets at June 30, 2004 increased $32.6 million, or
5%, from total assets at March 31, 2004 of $700.2 million. Total loans for
the same period grew $33.6 million, or 7% from $496.3 million at March 31,
2004 to $529.9 million at June 30, 2004."
Total deposits increased $259.8 million, or 127.29%, to $463.9 million at
June 30, 2004 compared with $204.1 million at June 30, 2003. Branch deposit
growth for the quarter ended June 30, 2004 was $3.4 million, or 0.7%. Other
funding for the quarter ended June 30, 2004 included Federal Home Loan Bank
borrowings and brokered deposits totaling $192.0 million compared to $103.3
million on June 30, 2003, an increase of $88.7 million, or 86%.
The provision for loan and lease losses increased $2.8 million, or 79%, to
$6.42 million on June 30, 2004 from $3.59 million on June 30, 2003. Total
reserves represent 1.3% of net loans and 553.5% of non-performing loans. "It
is essential that our 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, net of recoveries, for the
quarter totaled $269,000 compared to $2,000 for the comparable quarter a year
ago. Of the $269,000 net charge offs, $205,000 consists of two commercial
loans that were totally written off; both were previously classified assets.
Asset quality remains stable." Total non-performing assets on June 30, 2004
were $2.5 million, or 0.4% of total assets compared with $3.7 million, or
0.52% of total assets on March 31, 2004. "We continue to focus on credit risk
on a quarterly basis through the asset review committee and on an on-going
basis through executive management loan committee and credit administration,"
said Conklin.
"New growth in the quarter ending June 30, 2004 met operational
expectations, and loan demands are strong in our Boise and Coeur d'Alene,
Idaho and Spokane, Washington markets," noted Conklin. "Additionally, net
income growth is expected to remain strong as compared to year ago levels
primarily because of the acquisition of Oregon Trail Financial Corp. completed
on October 31, 2003, however, earnings per share growth is expected to be
moderate reflecting our investments in technology, infrastructure and staff."
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank Northwest is based in Clarkston, Washington. FirstBank Northwest
operates 20 branch locations in northern Idaho along the Idaho/Washington
border and in eastern Oregon, in addition to residential loan centers in
Lewiston, Coeur d'Alene, and Boise, Idaho, and Baker City, Oregon. Salomon
Smith Barney has investment centers in FirstBank's Coeur d'Alene, Idaho,
Clarkston and Liberty Lake, Washington, and Baker City, LaGrande, Pendleton
and Ontario, Oregon branches. FirstBank Northwest is known as the local
community bank, offering its customers highly personalized service in the many
communities it serves.
Certain matters in this News Release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements may relate to, among others,
expectations of the business environment in which FirstBank operates,
projections of future performance, including operating efficiencies, perceived
opportunities in the market, potential future credit experience and statements
regarding FirstBank's mission and vision. These forward-looking statements
are based upon current management expectations, and may, therefore, involve
risks and uncertainties. FirstBank's actual results, performance, and
achievements may differ materially from those suggested, expressed or implied
by forward-looking statements due to a wide range of factors including, but
not limited to, the general business environment, interest rates, the real
estate market in Washington, Idaho and Oregon, the demand for mortgage loans,
FirstBank's ability to successfully integrate the business of Oregon Trail,
the realization of expected cost savings or accretion to earnings because of
the acquisition of Oregon Trail, competitive conditions between banks and
non-bank financial service providers, regulatory changes, and other risks
detailed in the Company's reports filed with the Securities and Exchange
Commission, including its Annual Report on From 10-KSB for the fiscal year
ended March 31, 2004.
FIRSTBANK NW CORP
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except share
and per share data)
Three Months Three Months
Ended Ended
June 30, June 30,
2004 2003
Interest Income $9,510 $5,097
Interest Expense 2,982 2,056
Provision for Loan Losses 376 177
Net Interest Income After Provision
for Loan Losses 6,152 2,864
Non-Interest Income
Gain on sale of loans 504 780
Gain on sale of securities, net 0 0
Service fees and charges 1,181 577
Commission and other 33 33
Total Non-Interest Income 1,718 1,390
Non-Interest Expenses
Compensation and Related Expenses 3,418 1,920
Occupancy 744 351
Other 1,528 877
Total Non-Interest Expense 5,690 3,148
Income Tax Expense 628 327
Net Income $1,552 $779
Basic Earnings per Share $0.54 $0.61
Diluted Earnings per Share $0.52 $0.58
Weighted Average Shares Outstanding-
Basic 2,866,090 1,280,984
Weighted Average Shares Outstanding-
Diluted 2,996,698 1,351,654
Actual Shares Issued 2,965,266 1,382,392
June 30, March 31, June 30,
2004 2004 2003
Total Assets $732,806 $700,232 $344,193
Cash and Cash Equivalents $37,007 $38,397 $26,609
Loans Receivable, net $493,146 $464,368 $264,963
Mortgage-Backed Securities $71,180 $77,027 $8,674
Investment Securities $49,326 $38,787 $17,469
Stock in FHLB, at cost $12,628 $12,506 $5,806
Deposits $487,650 $491,035 $229,182
FHLB Advances & Other Borrowings $168,447 $132,056 $78,237
Stockholders' Equity $69,671 $69,332 $31,010
Tangible Book Value per Share (1) $16.92 $17.33 $23.70
FASB 115 Adjustment after Taxes $82 $1,268 $1,141
Tangible Equity/ Total Tangible
Assets 6.86% 7.57% 9.01%
Tier 1 Capital to Average Assets 6.64% 6.51% 8.35%
Risk-based Capital to Risk-Weighted
Assets 10.45% 10.50% 12.95%
Number of full-time equivalent
Employees 257 247 137
(1) 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)
6/04 -- 77,060, 3/04 -- 79,149 shares, and 6/03 -- 85,418 shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Fiscal Three
Months Year Months
Ended Ended Ended
June 30, March 31, June 30,
2004 2004 2003
Return on Average Assets 0.88% 0.90% 0.93%
Return on Average Tangible Equity 12.76% 11.17% 10.14%
Average Tangible Equity/Average
Tangible Assets 7.11% 8.19% 9.19%
Average Equity/Average Assets 9.88% 9.71% 9.19%
Average Tangible Equity/Average Loans 10.13% 11.37% 12.15%
Efficiency Ratio (2) 66.78% 70.44% 69.04%
Non-Interest Expenses / Average
Assets 3.23% 3.43% 3.77%
Net Interest Margin (3) 4.31% 4.17% 4.10%
Average Interest Earning Assets /
Average Deposits and Other
Borrowed Funds 114.78% 102.09% 115.42%
Three Fiscal Three
Months Year Months
Ended Ended Ended
June 30, March 31, June 30,
LOANS 2004 2004 2003
(unaudited) (in thousands except
share and per share data)
LOAN ORIGINATIONS (4):
Residential loan centers $78,169 $244,456 $71,448
Consumer loan centers 16,345 16,364 1,890
Agricultural loan centers 3,937 8,048 3,193
Commercial loan centers 28,885 86,929 34,291
Total Loan Originations $127,336 $355,797 $110,822
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $117,582 $112,312 $48,195
Construction 76,004 68,236 50,970
Agricultural 19,648 18,568 15,692
Commercial 126,590 122,132 70,200
Total real estate loans 339,824 321,248 185,057
Consumer and other loans:
Home equity 31,430 25,599 16,557
Agricultural operating 29,079 24,876 15,771
Commercial 81,551 75,878 54,620
Other consumer 42,693 43,425 7,349
Total consumer and other loans 184,753 169,778 94,297
Loans held for sale-residential real
estate 5,285 5,253 10,590
Total Loans Receivable $529,862 $496,279 $289,944
Three Fiscal Three
Months Year Months
Ended Ended Ended
June 30, March 31, June 30,
2004 2004 2003
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $6,314 $3,414 $3,414
Purchased $2,863
Provision for Loan Losses 376 395 177
Charge Offs (Net of Recoveries) (269) (358) (2)
Balance at End of Period $6,421 $6,314 $3,589
Loan Loss Allowance / Net Loans 1.30% 1.36% 1.35%
Loan Loss Allowance / Non-Performing
Loans 553.53% 199.37% 208.06%
(2) Calcuation is non-interest expense divided by tax equivalent non-
interest income and net interest income.
(3) Calcuation is tax equivalent net interest income divided by total
interest-earning assets.
(4) 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,
2004 2004 2003
Accruing Loans - 90 Days Past Due $0 $0 $0
Non-accrual Loans 1,160 2,900 1,725
Total Non-performing Loans 1,160 2,900 1,725
Restructured Loans on Accrual 827 152 502
Real Estate Owned (REO) 525 552 120
Repossessed Assets 28 52 0
Total Non-performing Assets $2,540 $3,656 $2,347
Total Non-performing Assets/Total
Assets 0.35% 0.52% 0.68%
Loan and REO Loss Allowance as a % of
Non-Performing Assets 252.80% 160.95% 276.48%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Three Fiscal Three
Months Year Months
Ended Ended Ended
June 30, March 31, June 30,
2004 2004 2003
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage Loans receivable $116,905 $74,416 $48,929
Average Commercial Loans receivable 200,685 150,557 121,386
Average Construction Loans receivable 47,824 36,356 31,682
Average Consumer Loans receivable 71,651 43,063 25,977
Average Agricultural Loans receivable 45,391 37,547 29,738
Average Unearned Loan Fees and
Discounts,
Allowance for Loan losses, and
Other (8,122) (6,350) (4,667)
Total Average Loans receivable, net 474,334 335,589 253,045
Average Loans Held for Sale 5,782 7,584 8,202
Average Mortgage-backed securities 74,874 35,869 9,327
Average Investment securities 39,191 24,840 17,135
Average Other Earning Assets 39,847 35,999 21,239
Total Average Interest Earning Assets 634,028 439,881 308,948
Average Non-Interest Earning Assets 70,733 44,685 25,453
Total Average Assets $704,761 $484,566 $334,401
Average Interest Bearing Liabilities:
Average Passbook, NOW, and money
market accounts $217,194 $137,025 $73,903
Average Certificates of deposit 197,252 149,626 113,355
Average Advances from FHLB and other 137,932 101,106 80,405
Total Average Interest Bearing
Liabilities 552,378 387,757 267,663
Average Non-Interest Bearing Deposits 75,321 43,107 30,345
Average Deposits and Other Borrowed
Funds 627,699 430,864 298,008
Average Non-Interest Bearing
Liabilities 7,450 6,638 5,658
Total Average Liabilities 635,149 437,502 303,666
Total Average Equity 69,612 47,064 30,735
Total Average Liabilities and Equity $704,761 $484,566 $334,401
Total Tangible Average Equity $48,643 $39,030 $30,735
Interest Rate Yield on Earning
Assets 6.19% 6.41% 6.77%
Interest Rate Expense on Deposits and
Other Borrowed Funds 1.90% 2.31% 3.07%
Interest Rate Spread 4.29% 4.10% 3.70%
Net Interest Margin 4.31% 4.17% 4.10%
SOURCE FirstBank NW Corp.
 back to top
Related links:
http://www.fbnw.com
CONTACT:
Larry K. Moxley, Exec. VP & CFO of FirstBank
NW Corp., +1-509-295-5100
|
