LEWISTON, Idaho, Oct. 21 /PRNewswire/ -- FirstBank Corp. (Nasdaq: FBNW),
the holding company for FirstBank Northwest, today reported solid increases in
assets, loans and deposits for the first half of fiscal 1999, with assets
exceeding $200 million for the first time -- sooner than the company had
expected.
"To date, all FirstBank's growth has developed internally as we have
increased market share in a very competitive market. We are right on track
with our strategic plan," said Clyde E. Conklin, Chief Executive Officer.
"Core deposit growth has been very strong and we have abundant capital, as a
result of our conversion to a publicly owned company last year, to achieve
FirstBank's strategic growth objectives."
Net income totaled $495,000, or $.27 per share (diluted), for the quarter
ended September 30, 1998 compared to $481,000 or $.26 per share in the like
quarter a year ago. Net interest income after loan loss provision increased
13% to $2.0 million in the second quarter of fiscal 1999, from $1.8 million in
the second quarter of fiscal 1998. Non-interest income rose 24% to
$668,000 in the quarter just ended compared to $538,000 one year ago.
"Offsetting the solid gains in income, non-interest expense increased
22% to $1.9 million in the quarter from $1.5 million in the like quarter the
year before. Expansion expenses -- including seven additional staff persons,
costs related to becoming a public company, and development of new banking
products -- accounted for much of the increase. In addition, investments in
data processing, phone systems and PC networks are critical to our efficient
growth and performance in the future," Conklin noted.
Net income for the first half of fiscal 1999 increased 34% to $946,000, or
$.52 per share (diluted), over the $707,000, or $.39 per share, reported in
the first six months of last year. Net interest income after loan loss
provision increased 17% to $3.7 million in the first half of fiscal
1999, from $3.1 million in the year-ago period. Reflecting strong loan
growth, FirstBank's loan loss provision has tripled year-to-date, to
$201,000 from $68,000, which has reduced net income. Non-interest income
advanced 48% to $1.5 million for the half, from $1.0 million one year ago.
Non-interest expense in the first half of fiscal 1999 was $3.7 million
compared to
$3.0 million in the year ago period due to costs of developing new products
and technologies for long-term growth mentioned above.
During the second quarter, FirstBank completed the repurchase of 5%, or
99,187, of its common shares. The company also announced plans to repurchase
an additional 4% of its shares on the open market. During the quarter,
FirstBank also announced plans to open a new branch office in Liberty Lake
-- between Spokane, Washington and Coeur d'Alene, Idaho. Scheduled to open
next summer, it will be FirstBank's second branch in Washington state.
Total deposits grew 14% to $123.2 million at September 30, 1998 from
$108.5 million one year ago. "Core deposits showed especially good increases
over the year before, with checking accounts accounting for $7.3 million
-- or more than half -- of the growth," noted Larry K. Moxley, Executive Vice
President and Chief Financial Officer.
Net interest margin was 4.47% for the second quarter, nearly the same as
the net interest margin of 4.53% one year ago. "Our strong core deposits are
enabling us to manage our cost of funds and maintain good margins," Moxley
said.
On Monday, FirstBank announced its fifth consecutive regular quarterly
cash dividend since going public. The dividend will be $.09 per share, to be
paid on November 25, to shareholders of record November 11.
"Our strategy to increase commercial, agricultural and consumer lending,
while maintaining our traditional residential real estate lending, has
produced a more diversified and balanced loan mix," Conklin said. "Total
loans receivable have increased 17% to $155 million since the end of 1998's
fiscal year in March. Our loan portfolio is 22% larger than one year ago."
"Commercial real estate loans nearly tripled from one year ago to
$21.2 million while other commercial loans quadrupled to $18.2 million.
Agricultural real estate loans rose 24% to $15.4 million and agricultural
operating loans doubled to $3.2 million," Moxley noted. "The residential loan
portfolio decreased slightly to $87.9 million, reflecting an increase in
re-financing. While residential mortgages are still our major business, they
now account for about 52% of total loans compared to 66% a year ago; total
agricultural loans are 11% of our total portfolio and commercial loans
equal nearly 23%."
Loan originations totaled $84.0 million during the first half of fiscal
1999 compared to $64.7 million in the first six months of last year.
FirstBank also services a portfolio of loans for other investors that totaled
$144.0 million at September 30, 1997 and generated approximately $97,000 in
fee income during the quarter.
Reflecting increased operating expenses, FirstBank's efficiency ratio was
68.6% in the first half of fiscal 1999, compared to 71.4% a year ago.
"Efficiency ratios should improve as expansion costs move behind us," Moxley
noted.
Total nonperforming assets were $0.5 million, or 0.26% of total assets at
quarter-end, compared to $1.3 million or 0.73% at March 31, 1998 and in the
year-ago quarter. "Excellent service and high loan quality are always our top
priorities," Conklin said.
FirstBank Corp.'s assets rose 14% to $203.3 million at September 30, 1998,
from $177.9 million one year ago. Reflecting the 5% stock repurchase,
shareholder equity was $28.8 million compared to $29.2 million the year
before. Book value equaled $16.24 per share and the equity to asset ratio was
14.19% at September 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/Washington
border, plus two residential loan centers located in Lewiston and Coeur
d'Alene, ID. FirstBank is known as the local community bank, offering its
customers highly personalized service in the many communities it serves. FBNW
shares closed yesterday, October 20, at $16 per share.
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except per share)
Second Quarter Ended Six Months Ended
September 30, September 30,
1998 1997 1998 1997
Total Interest Income $3,918 $3,468 $7,504 $6,366
Interest Expense $1,873 $1,658 $3,618 $3,159
Provision for
Loan Losses $65 $50 $201 $68
Net Interest Income
After Provision
for Loan Losses $1,980 $1,760 $3,685 $3,139
Non-Interest Income $668 $538 $1,484 $1,002
Non-Interest Expense $1,861 $1,524 $3,683 $3,006
Income Tax Expense
(benefit) $292 $293 $540 $428
Net Income $495 $481 $946 $707
ProForma Basic
Earnings per Share $.28 $.26 $.52 $.39
ProForma Diluted
Earnings per Share $.27 $.26 $.52 $.39
Weighted Average
Shares Outstanding 1,776,211 1,826,981 1,807,564 1,826,021
September 30, March 31, September 30,
1998 1998 1997
Total Assets $203,270 $183,529 $ 177,870
Loans Receivable, net $155,010 $145,662 $133,080
Mortgage-backed securities $10,911 $11,390 $12,647
Investment Securities $6,715 $5,104 $6,407
Deposits $123,165 $114,495 $108,500
FHLB Advances $48,127 $35,656 $35,140
Shareholders' Equity $28,840 $30,008 $29,221
Tangible Book Value per Share $16.24 $16.40 15.99
Number of full-time
Equivalent Employees 94 95 87
Equity/Total Assets 14.19% 16.35% 16.43%
Spread (yield, less
cost of funds) 3.80% 3.79% 3.74%
Tier I Capital to
Average Assets 10.74% 11.56% 12.79%
Risk-based Capital to
Risk-Weighted Assets 15.89% 18.05% 19.97%
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Six Months Ended
September 30, September 30,
1998 1997 1998 1997
Return on Average
Assets 1.00% 1.11% 0.98% .82%
Return on Average
Equity 6.70% 6.66% 6.32% 7.28%
Avg. Equity/Avg.
Assets 14.85% 16.76% 15.47% 12.24%
Avg. Equity/Avg.
Loans 19.00% 22.20% 19.66% 15.54%
Efficiency Ratio 68.59% 64.91% 68.59% 71.42%
(operating expense/
revenue)
Operating Expense/
Average Assets 3.74% 3.53% 3.80% 5.17%
Net Interest Margin 4.47% 4.53% 4.34% 4.35%
Interest Earning
Assets/ 111.99% 116.59% 113.23% 110.31%
Interest
Earning Liabilities
LOANS
(unaudited) (in thousands except per share)
Six Months Ended
September 30, 1998 September 30, 1997
LOAN ORIGINATIONS: $83,965 $64,726
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $87,912 $91,868
Construction $9,917 $9,164
Agricultural $15,413 $12,413
Commercial $21,241 $7,705
Total real
estate loans $134,483 $121,150
Consumer and
other loans:
Home equity $6,133 $6,445
Agricultural operating $3,159 $1,523
Commercial $18,184 $4,144
Other consumer $7,255 $5,268
Total consumer
and other loans $34,731 $17,380
Total Loans Receivable $169,214 $138,530
Second Quarter Ended
September 30,
1998 1997
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning
of Quarter $1,120 $974
Provision for Loan Losses $201 $68
Charge offs
(Net of Recoveries) $24 $18
Balance at
End of Quarter $1,297 $1,024
Loan Loss Allowance/
Net Loans 0.84% 0.77%
Loan Loss Allowance/
Non-Performing Loans 5,188.1% 99.61%
NON-PERFORMING ASSETS: September 30,
1998 1997
Accruing Loans -- 90
Days Past Due $6 $51
Non-accrual Loans $19 $977
Total Non-performing Loans $25 $1,028
Restructured Loans on Accrual $0 $1,733
Real Estate Owned (REO) $506 $266
Total Non-performing Assets $531 $1,294
Total Non-performing Assets/
Total Assets 0.26% 0.73%
Loan and REO Loss
Allowance as a %
of Non-Performing Assets 244.26% 259.79%
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 interest rate fluctuations, economic changes 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
Corp., 208-746-9610
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