Declares Regular Quarterly Cash Dividend of $.09 Per Share
LEWISTON, Idaho, July 23 /PRNewswire/ -- FirstBank Corp. (Nasdaq: FBNW),
the holding company for FirstBank Northwest, today reported that assets, loans
and deposits each increased more than 13% in its first fiscal quarter over the
year before. As announced previously, however, investments related to future
growth -- such as the upgrade and conversion of its data processing system and
expanding services and offices -- dampened profits for the quarter.
Net income was $292,000 or $.17 per diluted share for the quarter ended
June 30, 1999, compared to $451,000 or $.25 per share one year ago. Unusual
costs for the just-ended quarter include approximately $120,000, or about
$.05 per share after tax, in expenses related to converting the company's
complete data processing and telecommunications systems. In addition, after
tax costs related to the opening of a new branch equaled approximately
$.02 per share. The year ago period was impacted by a one-time loss of
$57,000 (or $.02 per share) on the sale of a piece of real estate.
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 26, 1999 to shareholders of record at August 12. This is the eighth
consecutive regular quarterly cash dividend since FirstBank's conversion to
the stock form of ownership in July 1997.
"Paying this dividend demonstrates our strong confidence in FirstBank's
long-term outlook," said Clyde E. Conklin, Chief Executive Officer. "While
first quarter profits are certainly below what we'd like, the decline stems
entirely from the costs of solid growth. We believe these are one-time
investments that are behind us and that the remainder of the year should
return to near our traditional growth patterns.
"The data processing conversion was one of our strategic objectives and is
vital to improved customer service, Y2K compliance, and employee efficiency.
With this major investment completed, we can now fully focus on the business
of banking," Conklin said. "As with any office technology upgrade, conversion
expenses and time demands were more than anticipated. Earnings also were
impacted by costs of opening our new supermarket branch in Post Falls, Idaho.
Our new branch in Liberty Lake, Washington, is targeted to open in October.
The new branches will not contribute to earnings for several months but they
are in excellent markets and are expected to do well."
In addition to new bank branches, FirstBank has opened a Salomon Smith
Barney Investment Center in its downtown Lewiston bank branch. Similar
services also will be offered in FirstBank's Coeur d'Alene branch, and the
bank intends to place Investment Centers in additional branches over time in
order to provide a full range of financial products. One of the most
respected names in investing, Salomon Smith Barney is a subsidiary of
Citigroup Inc.
"Total loans receivable rose 11% over the year before to $183.6 million;
total loan originations for the first quarter of fiscal 2000 declined 12% to
$40.3 million but were sharply above the $28.8 million of loans originated
during the preceding quarter," said Larry K. Moxley, Executive Vice President
and Chief Financial Officer. "FirstBank also services a portfolio of loans
for other investors that totaled $152.3 million at June 30, 1999 and generated
approximately $70,000 in fees to non-interest income for the quarter."
"Commercial, agricultural and consumer lending products, which have higher
net interest margins than conventional residential lending, are driving our
growth. Net interest margin rose to 4.35% for the quarter, compared to net
margin of 4.25% one year ago," he noted. "Total consumer, commercial and
agricultural loans rose 39% over year ago levels while total real estate loans
eased slightly. Residential real estate loans fell 11% to $72.8 million and
accounted for about 40% of the total portfolio." Net interest income after
loan loss provision rose 20% to $2.0 million from $1.7 million one year ago.
The loan loss provision was substantially higher than in the preceding two
quarters due to the vigorous loan growth.
Total commercial real estate and non-real estate loans rose 34% over last
year to $46.5 million, or 25% of the total loan portfolio. Total agricultural
operating and real estate loans rose 27% to $24.1 million, or 13% of the total
portfolio. Construction loans were 5% and home equity & other consumer loans
equaled 17% of total loans receivable at June 30, 1999.
Total nonperforming assets declined to $541,000 or just 0.25% of total
assets at June 30, 1999, compared to $678,000 or 0.35% the year before.
Non-interest income declined 30% to $567,000 in the quarter just ended
compared to $815,000 one year ago when an unusually large number of loans were
sold to the secondary market. Reflecting the data processing conversion and
various expansion costs, non-interest expense increased 18% to $2.2 million
for the quarter, compared to $1.8 million one year ago. Because of these
expenses, FirstBank's efficiency ratio rose to 86.05% compared to 68.59% a
year ago. "Improving FirstBank's efficiency ratio is clearly a priority,"
Conklin noted.
At Wednesday's annual meeting, shareholders approved FirstBank's
re-incorporation in Washington State from Delaware, which is expected to help
reduce non-interest expenses going forward. After the re-incorporation
process is completed, which is expected early this fall, the new corporate
name will be FirstBank NW Corp. The Nasdaq stock symbol will remain FBNW.
FirstBank Corp.'s assets advanced 13% to $220.5 million at June 30,
1999, from $194.4 million one year ago. Stockholder equity was reduced by
10% to $27.2 million, reflecting deployment of funds from the public offering,
dividend payments and repurchase of common shares. The equity to asset ratio
was reduced to 12.4% from 15.6%. Book value equaled $16.35 per share at
June 30, 1999.
The company has repurchased approximately 14% of its common shares during
the past year through a series of buyback programs.
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 seven branch locations along the Idaho/Eastern
Washington border -- and has two residential loan centers located in Lewiston
and Coeur d'Alene. A supermarket branch location opened in February in Post
Falls, Idaho and a second Washington State branch -- in Liberty Lake, near
Spokane -- will open later this year. 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 $14.94 per share yesterday.
Statements concerning future performance, developments or events,
concerning expectations regarding improving profits, 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, expense reduction, 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,
1999 1998
Interest Income $4,077 $3,585
Interest Expense $1,902 $1,745
Provision for Loan Losses $134 $135
Net Interest Income After
Provision for Loan Losses $2,041 $1,705
Non-Interest Income $567 $815
Non-Interest Expense $2,153 $1,821
Income Tax Expense $163 $248
Net Income $292 $451
Basic Earnings Per Share $0.18 $0.25
Diluted Earnings Per Share $0.17 $0.25
Weighted Average Shares
Outstanding - Basic 1,599,984 1,838,562
Weighted Average Shares
Outstanding - Diluted 1,679,334 1,838,562
June 30, March 31, June 30,
1999 1999 1998
Total Assets $220,478 $206,745 $194,432
Loans Receivable, net $177,841 $165,617 $156,665
Mortgage-Backed Securities $11,620 $12,874 $10,970
Investment Securities $7,386 $7,236 $4,927
Deposits $136,354 $133,278 $119,961
FHLB Advances $54,481 $42,027 $42,202
Stockholders' Equity $27,220 $27,774 $30,391
Book Value per Share $16.35 $16.29 $16.53
Equity/Total Assets 12.35% 13.43% 15.60%
Spread (yield, less cost of funds) 3.99% 3.94% 3.74%
Number of full-time Equivalent Employees 108 102 98
FINANCIAL STATISTICS
(ratios annualized) Quarter Year Quarter
Ended Ended Ended
June 30, March 31, June 30,
1999 1999 1998
Return on Average Assets 0.55% 1.03% 0.97%
Return on Average Equity 4.29% 6.94% 5.93%
Average Equity/Average Assets 12.81% 14.88% 16.28%
Average Equity/Average Loans 15.85% 18.79% 20.32%
Efficiency Ratio
(operating expense/revenue) 86.05% 69.85% 68.59%
Operating Expense/Average Assets 4.05% 3.83% 3.90%
Net Interest Margin 4.35% 4.33% 4.25%
Interest Earning Assets/Interest
Bearing Liabilities 109.64% 113.05% 112.61%
LOANS
(unaudited) (in thousands except per share)
Quarter Year Quarter
Ended Ended Ended
June 30, March 31, June 30,
1999 1999 1998
LOAN ORIGINATIONS: $40,318 $165,627 $45,694
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $72,765 $71,516 $77,952
Construction $9,264 $ 9,333 $10,056
Agricultural $16,781 $16,257 $14,021
Commercial $20,969 $20,136 $18,309
Total real estate loans $119,779 $117,242 $120,338
Consumer and other loans:
Home equity $20,442 $18,166 $17,931
Agricultural operating $7,367 $4,357 $5,042
Commercial $25,488 $27,969 $16,332
Other consumer $10,496 $8,687 $6,430
Total consumer and other loans $63,793 $59,179 $45,735
Total Loans Receivable $183,572 $176,421 $166,073
Quarter Year Quarter
Ended Ended Ended
June 30, March 31, June 30,
1999 1999 1998
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $1,361 $1,120 $1,120
Provision for Loan Losses $134 $296 $136
Charge offs (Net of Recoveries) $17 $55 $21
Balance at End of Period $1,478 $1,361 $1,235
Loan Loss Allowance/Net Loans 0.83% 0.82% 0.79%
Loan Loss Allowance/Non-Performing
Loans 497.64% 217.76% 252.04%
Quarter Year Quarter
Ended Ended Ended
June 30, March 31, June 30,
1999 1999 1998
NON-PERFORMING ASSETS:
Accruing Loans - 90 Days Past Due $4 $13 $14
Non-accrual Loans $293 $412 $35
Total Non-performing Loans $297 $625 $49
Restructured Loans on Accrual $200 $201 $0
Real Estate Owned (REO) $44 $299 $719
Total Non-performing Assets $541 $1,125 $678
Total Non-performing Assets/Total
Assets 0.25% 0.58% 0.35%
Loan and REO Loss Allowance as a % of
Non-Performing Assets 273.2% 120.98% 160.81%
SOURCE FirstBank 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
Corp., 208-746-9610
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