LEWISTON, Idaho, Oct. 22 /PRNewswire-FirstCall/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for FirstBank
Northwest, today reported solid growth as net income improved 8.8% to
$645,000, or $.48 per diluted share, in its second fiscal quarter ended
September 30, 2002 compared to $593,000, or $.43 per diluted share, in the
like quarter a year ago, producing 11.6% in earnings per share growth.
FirstBank also announced its Board of Directors has approved a 25%
increase in the regular quarterly cash dividend to $.15 per common share. The
dividend will be paid November 28, 2002 to shareholders of record at
November 14, 2002. This marks the twenty-first regular quarterly cash
dividend since FirstBank's conversion to the stock form of ownership in July
1997.
"Net income is increasing based on loan growth and an improved net
interest margin during the past year, with $249.9 million in net loans as of
September 30, 2002 compared with $215.8 million at September 30, 2001," said
Clyde E. Conklin, President and Chief Executive Officer. "In addition,
non-interest income continues to remain strong, representing 28.8% of income
before non-interest expense and taxes."
Non-interest income was $1,083,000 for the second quarter, compared to
$991,000 in the like quarter a year ago. "Increases in service charges, fees,
and loan fee income contributed to the increase over last year," said Larry K.
Moxley, Executive Vice President and Chief Financial Officer.
Non-interest expense, or operating expense, increased to $2.86 million for
the quarter, compared to $2.48 million a year ago. FirstBank's efficiency
ratio was 69.6% in its second fiscal quarter of 2003, compared to 68.4% for
the like quarter a year ago. "Non-interest expenses are expected to increase
as the recently opened Loan Production Offices in Boise, Idaho and Spokane,
Washington continue to increase business and attain a return to the bank,"
noted Moxley.
Total assets were $325.8 million at September 30, 2002, an 11.9% increase
over total assets of $291.2 million at September 30, 2001. "Asset growth was
6.1% for the quarter ending September 30, 2002, due to increased cash and
equivalents and loan growth," said Conklin. Net loan growth for the second
fiscal quarter ending September 30, 2002 was $5.8 million, or 2.4% over total
net loans for the quarter ending June 30, 2002.
Total branch deposits were $193.2 million on September 30, 2002 compared
with $169.9 million on September 30, 2001; a growth of 13.7%. Other funding,
including Federal Home Loan Bank borrowings and brokered deposits totaled
$97.8 million on September 30, 2002 compared to $89.5 million on
September 30, 2001.
Allowance for loan and lease losses increased to $2.88 million on
September 30, 2002 from $2.1 million on September 30, 2001; an increase of
38%. Total allowance reserves represent 1.15% of net loans and 165.08% of
non-performing assets. Non-performing assets increased to $2.308 million at
September 30, 2002 compared to $1.564 million at September 30, 2001. "It is
essential that provisions adequately reflect the credit risk in the portfolio
and the non-performing assets identified," said Moxley. "Credit quality
remains strong and non-performing assets are consistent with expectations. We
will continue to closely monitor credit quality, and the appropriate reserve
levels."
"Since July 1998, we have completed stock repurchases totaling 33% or
662,828 of FBNW shares, of which 4% have been reissued to fund employee stock
benefit plans, for a net repurchase of 29%," said Conklin. "The Board of
Directors authorized the repurchase of 153,000 shares on May 17, 2001, which
is currently underway."
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank Northwest is based in Lewiston, Idaho, and is known as the local
community bank, offering its customers highly personalized service in the many
communities it serves. FBNW shares closed at $18.95 per share yesterday, or
85% of book value.
Statements concerning future performance, developments or events,
concerning expectations regarding expansion opportunities, technology
efficiencies, new products and services, 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, regional
economic conditions, competitive factors, and government and regulatory
actions that might cause actual results to differ materially from stated
expectations.
FIRSTBANK NW CORP
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except share and per share data)
Three Months Ended Six Months Ended
September 30, September 30,
2002 2001 2002 2001
Interest Income $5,153 $5,222 $10,228 $10,499
Interest Expense 2,250 2,673 4,477 5,462
Provision for Loan Losses 228 185 438 414
Net Interest Income
After Provision for
Loan Losses 2,675 2,364 5,313 4,623
Non-Interest Income
Gain on sale of loans 505 482 924 835
Gain on sale
of securities, net 0 0 0 175
Mortgage Servicing Fees 45 60 92 117
Service fees and charges 498 425 958 808
Commission and other 35 24 84 65
Total
Non-Interest Income 1,083 991 2,058 2,000
Non-Interest Expenses
Compensation and
Related Expenses 1,777 1,462 3,465 2,907
Occupancy 298 310 625 617
Other 786 711 1,544 1,338
Total Non-Interest
Expense 2,861 2,483 5,634 4,862
Income Tax Expense 252 279 461 587
Net Income $645 $593 $1,276 $1,174
Basic Earnings
per Share $0.50 $0.44 $0.98 $0.86
Diluted Earnings
per Share $0.48 $0.43 $0.95 $0.82
Proforma Basic Cash
Earnings per Share (A) $0.53 $0.46 $1.04 $0.91
Proforma Diluted
Cash Earnings
per Share (A) $0.51 $0.45 $1.00 $0.87
Weighted Average
Shares Outstanding
- Basic 1,290,589 1,356,792 1,296,270 1,372,325
Weighted Average
Shares Outstanding
- Diluted 1,333,078 1,397,308 1,345,830 1,427,458
Actual Shares
Outstanding 1,403,592 1,471,192 1,403,592 1,471,192
Sept. 30, March 31, Sept. 30,
2002 2002 2001
Total Assets $325,816 $307,840 $291,182
Cash and Cash Equivalents $28,259 $24,012 $27,262
Loans Receivable, net $249,921 $238,136 $215,820
Mortgage-Backed Securities $10,973 $11,433 $13,592
Investment Securities $14,057 $12,524 $12,595
Stock in FHLB, at cost $5,543 $5,380 $5,210
Deposits $210,705 $196,123 $180,794
FHLB Advances
& Other Borrowings $80,224 $79,722 $78,551
Stockholders' Equity $29,369 $27,813 $27,770
Book Value per Share (B) $22.36 $20.72 $20.23
FASB 115 Adjustment after Taxes $1,198 $174 $568
Equity/ Total Assets 9.01% 9.03% 9.54%
Tier 1 Capital to Average Assets 8.56% 8.79% 9.05%
Risk-based Capital
to Risk-Weighted Assets 13.12% 13.47% 14.34%
Number of full-time
equivalent Employees 135 122 116
(A) Cash earnings per share exclude management recognition and
development plan expense that will continue until September of 2003.
(B) 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) 9/02--90,140 shares, 3/02 -- 94,321 shares, 9/01 -- 98,498
shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Fiscal Six Months Ended
September 30, Year Ended September 30,
2002 2001 March 31, 2002 2002 2001
Return on Average Assets 0.82% 0.83% 0.82% 0.83% 0.83%
Return on Average Equity 8.88% 8.46% 8.47% 8.91% 8.37%
Average Equity/
Average Assets 9.24% 9.76% 9.73% 9.27% 9.88%
Average Equity/
Average Loans 11.78% 12.51% 12.48% 11.85% 12.58%
Efficiency Ratio (C) 69.58% 68.40% 66.57% 69.87% 67.31%
Operating Expenses/
Average Assets 3.64% 3.46% 3.39% 3.64% 3.42%
Net Interest Margin 4.01% 3.76% 3.96% 4.17% 3.71%
Average Interest
Earning Assets/
Average Deposits and
Other Borrowed Funds 104.29% 104.78% 105.24% 104.43% 105.38%
Six Months Fiscal Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2002 2002 2001
LOANS
(unaudited) (in thousands except share and per share data)
LOAN ORIGINATIONS (D):
Residential loan centers $94,451 $112,785 $61,959
Consumer loan centers 7,670 16,138 8,994
Agricultural loan centers 11,698 25,229 7,113
Commercial loan centers 46,224 85,517 24,804
Total Loan Origination $160,043 $239,669 $102,870
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $68,650 $66,420 $74,087
Construction 34,060 9,870 9,007
Agricultural 16,609 16,264 16,395
Commercial 59,037 52,496 44,897
Total real estate loans 178,356 145,050 144,386
Consumer and other loans:
Home equity 23,640 24,832 26,173
Agricultural operating 14,359 12,289 10,472
Commercial 44,054 55,568 32,523
Other consumer 8,547 7,924 8,277
Total consumer
and other loans 90,600 100,613 77,445
Total Loans Receivable $268,956 $245,663 $221,831
Six Months Fiscal Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2002 2002 2001
ALLOWANCE FOR LOAN LOSSES:
Balance at
Beginning of Period $2,563 $1,758 $1,758
Provision for Loan Losses 438 1,064 414
Charge offs
(Net of Recoveries) (117) (259) (82)
Balance at End of Period $2,884 $2,563 $2,090
Loan Loss Allowance/
Net Loans 1.15% 1.08% 0.97%
Loan Loss Allowance/
Non-Performing Loans 165.08% 433.67% 140.08%
(C) Calculation is non-interest expense divided by tax equivalent
non-interest income and net interest income.
(D) Loan originations are based upon new production.
NON-PERFORMING ASSETS:
Six Months Fiscal Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2002 2002 2001
Accruing Loans - 90 Days Past Due $0 $0 $0
Non-accrual Loans 1,747 591 1,492
Total Non-performing Loans 1,747 591 1,492
Restructured Loans on Accrual 430 107 0
Real Estate Owned (REO) 131 424 72
Total Non-performing Assets $2,308 $1,122 $1,564
Total Non-performing Assets/
Total Assets 0.71% 0.36% 0.54%
Loan and REO Loss Allowance as a
% of Non-Performing Assets 124.96% 228.43% 133.63%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Six Months Fiscal Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2002 2002 2001
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage Loans receivable $64,724 $71,426 $74,958
Average Commercial Loans receivable 103,235 87,022 80,759
Average Construction Loans receivable 13,750 6,659 6,183
Average Consumer Loans receivable 32,495 34,657 35,639
Average Agricultural Loans receivable 31,065 27,748 27,902
Average unearned loan fees
and discounts, allowance for
loan losses, and other (3,411) (2,659) (2,406)
Total Average Loans receivable, net 241,858 224,853 223,035
Average Mortgage-backed securities 11,225 14,036 15,654
Average Investment securities 13,018 12,448 12,452
Average Other earning assets 22,110 17,886 14,195
Total Average Interest Earning Assets 288,211 269,223 265,336
Average Non-Interest Earning Assets 20,984 19,110 18,737
Total Average Assets $309,195 $288,333 $284,073
Average Interest Bearing Liabilities:
Average Passbook, NOW,
and money market accounts $64,532 $53,960 $49,257
Average Certificate of deposits 106,788 98,701 93,683
Average Advances from FHLB and other 81,598 83,395 89,621
Total Average
Interest Bearing Liabilities 252,918 236,056 232,561
Average Non-Interest Bearing Deposits 23,080 19,752 19,236
Average Deposits
and Other Borrowed Funds 275,998 255,808 251,797
Average Non-Interest
Bearing Liabilities 4,544 4,467 4,210
Total Average Liabilities 280,542 260,275 256,007
Total Average Equity 28,653 28,058 28,066
Total Average Liabilities and Equity $309,195 $288,333 $284,073
Interest Rate Yield on Earning Assets 7.27% 7.67% 8.05%
Interest Rate Expense
on Deposits and Other Borrowed Funds 3.24% 3.91% 4.34%
Interest Rate Spread 4.03% 3.76% 3.71%
Net Interest Margin 4.17% 3.96% 3.94%
SOURCE FirstBank NW Corp.
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Related links:
http://www.fbnw.com
CONTACT:
Larry K. Moxley, Exec. VP & CFO of FirstBank
NW Corp., +1-208-746-9610
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