LEWISTON, Idaho, Oct. 20 /PRNewswire/ -- FirstBank NW Corp.
(Nasdaq: FBNW), the holding company for FirstBank Northwest, today reported
deposits jumped more than 21% to $149.6 million, while net loans rose 14% over
the year before to $176.9 million at September 30, 1999.
Net income was $524,000 for second quarter of fiscal 2000, compared to
$495,000 in the year ago period, while earnings per share rose nearly 19% to
$.32, diluted, from $.27 per share, diluted, one year ago. For the six months
ended September 30, 1999, FirstBank NW reported net income of
$815,000 compared to $946,000 in last year's fiscal first half. Earnings per
share for the just-ended six month period equaled $.49, diluted, compared to
$.52 per share, diluted, in the year ago period. Due to its on-going program
of stock repurchases, FBNW had approximately 8% fewer shares outstanding,
diluted, for the quarter and six month periods of the current fiscal year.
"Following the heavy first quarter expenses for new technology
infrastructure and investments for growth, we're pleased to see results back
on target," said Clyde E. Conklin, Chief Executive Officer. "Net interest
margin was 4.39% for the first six months, about steady with the 4.34% level
of one year ago. The strong growth in core deposits allows us to manage our
cost of funds and has helped sustain margins. A special CD program in the
Coeur d'Alene office added to recent deposit growth."
"Reflecting our team's deep lending experience, loan quality remains very
good despite some increase over recent levels. Nonperforming assets were
$941,000, or 0.42% of total assets, compared to $531,000 or 0.26% of total
assets one year ago," noted Larry K. Moxley, Executive Vice President and
Chief Financial Officer. "Although agricultural loans have grown nearly 45%
over the past year, we're pleased that no significant agricultural loans are
delinquent. We're just entering the renewal period for 'ag' loans; so far,
our portfolio is performing very well."
Second quarter net interest income after loan loss provision was about
level with the year before at $2.0 million and rose slightly to $4.1 million
for the six month period. Non-interest income was $708,000 in the quarter
just ended compared to $668,000 one year ago, and for the six months was
$1.3 million compared to $1.5 million in the first half of last year.
Non-interest expense increased to $2.0 million for the second quarter from
$1.9 million in the like quarter the year before. For the six months,
non-interest expense rose 12% to $4.1million from $3.7 million. "Expansion
costs will continue as we staff our new Liberty Lake, Washington office.
Construction is nearly complete and the full-service branch is expected to
open in mid-November," Conklin noted. Liberty Lake is a suburb of Spokane, on
the fast-growing I-90 corridor between Spokane and Coeur d'Alene, Idaho. This
office will be FirstBank Northwest's second branch in Washington.
"Our strategy to increase commercial, agricultural and consumer lending is
evident in loan portfolio growth," Conklin said. "Total loans receivable
gained 8% to $183.4 million at September 30 from $169.2 million one year ago,
while consumer and other commercial loans increased more than 30%.
"Residential real estate lending is down from its earlier peaks as
re-financing business has declined industry-wide; fee income from this sector
also is declining. As a result, the residential loan portfolio declined to
$74.8 million, from $76.3 million a year ago. While residential mortgages are
still an important sector, they now account for only about 41% of total
loans," Conklin continued. "Agricultural real estate loans rose 8% to
$16.8 million and agricultural operating loans more than tripled to
$10.2 million. Total agricultural loans rose to nearly 15% of our total
portfolio. Total commercial loans (real estate and other) rose slightly and
equal nearly 24% for the total portfolio."
Loan originations declined to $72.6 million during the first half of
fiscal 2000 compared to $84.0 million in the first six months of last year.
FirstBank also services a portfolio of loans for other investors that totaled
$146.9 million at September 30, 1999 and generated approximately $68,000 in
fee income during the quarter.
Reflecting increased operating expenses, FirstBank's efficiency ratio was
74.5% in the first half of fiscal 2000 compared to 68.6% a year ago.
FirstBank Corp. changed its name to FirstBank NW Corp. following the
company's reincorporation to Washington State from Delaware in early October.
The stock symbol has remained unchanged. "Not only does the new name better
reflect our market area," Conklin said, "being incorporated in Washington will
be significantly less costly than the fees associated with being a Delaware
corporation."
Assets rose 11% to $224.6 million at September 30, 1999, from
$203.3 million one year ago. Reflecting the stock repurchases and investments
for future growth, shareholder equity was $26.8 million compared to
$28.8 million the year before. Tangible book value equaled $16.63 per share
compared to $16.24 per share a year ago. FBNW's equity to asset ratio was
11.93% at September 30, 1999.
FirstBank NW Corp., is the parent of FirstBank Northwest. Founded in
1920, FirstBank is based in Lewiston, Idaho at the northern end of Hell's
Canyon. With the opening of its Liberty Lake, Washington branch, FirstBank
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's downtown Lewiston and Coeur d'Alene branches.
FirstBank 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 $12.75 per share.
FINANCIAL HIGHLIGHTS
(unaudited) Three Months Six Months
(in thousands except per share) Ended Ended
September 30, September 30,
1999 1998 1999 1998
Total Interest
Income $4,130 $3,918 $8,207 $7,504
Interest Expense $2,039 $1,873 $3,941 $3,618
Provision for
Loan Losses $73 $65 $208 $201
Net Interest Income
After Provision
for Loan Losses $2,018 $1,980 $4,058 $3,685
Non-Interest Income $708 $668 $1,274 $1,484
Non-Interest Expense $1,973 $1,861 $4,126 $3,683
Income Tax Expense $229 $292 $391 $540
Net Income $524 $495 $815 $946
Basic Earnings
per Share* $.33 $.28 $.52 $.52
Diluted Earnings
per Share* $.32 $.27 $.49 $.52
Weighted Av. Shares
Outstanding - Basic* 1,565 1,776 1,582 1,808
Weighted Av. Shares
Outstanding - Diluted* 1,640 1,776 1,659 1,808
September 30, March 31,September 30,
1999 1999 1998
Total Assets $224,621 $206,745 $203,270
Loans Receivable, net $176,869 $165,617 $155,010
Mortgage-Backed Securities $15,539 $12,874 $10,911
Investment Securities $6,666 $7,236 $6,715
Deposits $149,562 $133,278 $123,165
FHLB Advances $45,652 $42,027 $48,127
Shareholders' Equity $26,801 $27,774 $28,840
Tangible Book Value per Share* $16.63 $16.29 16.24
Number of full-time
Equivalent Employees 106 102 94
Equity/Total Assets 11.93% 13.43% 14.19%
Spread (yield, less cost of funds) 3.98% 3.94% 3.80%
Tier I Capital to Average Assets 9.73% 11.56% 10.74%
FINANCIAL STATISTICS
(ratios annualized) Three Months Six Months
Ended Ended
September 30, September 30,
1999 1998 1999 1998
Return on Average Assets 0.94% 1.00% 0.73% .98%
Return on Average Equity 7.70% 6.70% 6.38% 6.32%
Avg. Equity/Avg. Assets 12.18% 14.85% 11.63% 15.47%
Avg. Equity/Avg. Loans 15.21% 19.00% 14.48% 19.66%
Efficiency Ratio 70.48% 68.59% 74.48% 68.59%
(operating expense
/revenue)
Operating Expense
/Average Assets 3.75% 3.74% 3.53% 3.80%
Net Interest Margin 4.46% 4.47% 4.39% 4.34%
Interest Earning Assets/ 108.47% 111.99% 108.07% 113.23%
Interest Earning
Liabilities
*Reflects stock repurchase programs throughout the past year.
LOANS
(unaudited)
(in thousands except per share) Six Months Ended
September 30, 1999 September 30, 1998
LOAN ORIGINATIONS: $72,634 $83,965
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $74,775 $76,321
Construction $8,136 $9,917
Agricultural $16,718 $15,413
Commercial $23,585 $21,241
Total real estate loans $123,214 $122,892
Consumer and other loans:
Home equity $21,562 $17,724
Agricultural operating $10,236 $3,159
Commercial $21,062 $18,184
Other consumer $7,336 $7,255
Total consumer and
other loans $60,196 $46,322
Total Loans Receivable $183,410 $169,214
Second Quarter Ended
September 30, 1999 September 30, 1998
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $1,361 $1,120
Provision for Loan Losses $208 $201
Charge offs (Net of Recoveries) $22 $24
Balance at End of Period $1,547 $1,297
Loan Loss Allowance/Net Loans 0.87% 0.84%
Loan Loss Allowance
/Non-Performing Loans 229.53% 5,188.06%
NON-PERFORMING ASSETS: September 30,
1999 1998
Accruing Loans - 90 Days Past Due $284 $6
Non-accrual Loans $390 $19
Total Non-performing Loans $674 $25
Restructured Loans on Accrual $199 $0
Real Estate Owned (REO) $68 $506
Total Non-performing Assets $941 $531
Total Non-performing
Assets/Total Assets 0.42% 0.26%
Loan and REO Loss Allowance as
a % of Non-Performing Assets 164.40 %244.26%
Statements concerning future performance, developments or events,
concerning expectations and any other guidance on future periods, constitute
forward-looking statements which are subject to a number of risks and
uncertainties including loan experience for farmers and the continued
performance of agricultural lending, interest rate fluctuations, changes in
residential mortgage patterns success of new branches and new products, and
government and regulatory actions which might cause actual results to differ
materially from stated expectations.
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
NW Corp., 208-746-9610
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