CLARKSTON, Wash., Oct. 26 /PRNewswire-FirstCall/ -- FirstBank NW Corp.
(Nasdaq: FBNW), the holding company for FirstBank Northwest, today reported
solid growth as net income improved to $1.63 million, or $0.54 per diluted
share, in its second fiscal quarter ended September 30, 2004. This compares to
net income of $694,000, or $0.51 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 December 3, 2004 to shareholders of record as of the close of
business on November 18, 2004. This marks the Company's 29th 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
$504.5 million as of September 30, 2004 compared to $256.3 million at
September 30, 2003, and an improved net interest margin of 4.23% for the three
months ended September 30, 2004," said Clyde E. Conklin, President and Chief
Executive Officer. "The Company's net interest income also was affected by
reserve allocations driven by new loan growth," noted Larry K. Moxley,
Executive Vice President and Chief Financial Officer. The provision for loan
losses for the quarter ended September 30, 2004 was $193,400, compared to
$78,000 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 $1.43 million for the second fiscal quarter,
compared to $1.16 million in the comparable quarter a year ago. "Increases in
service charges and fee income contributed to the increase in non-interest
income over last year," said Moxley. "Gain on sale of loans decreased to
$288,000, excluding impairment, for the quarter ending September 30, 2004
compared to $590,000 in the same quarter last year, due to reduced
refinancings and a slowing purchase market."
Non-interest expense, or operating expense increased $2.6 million to $5.7
million for the quarter ended September 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 68.5% in its
second fiscal quarter of 2004, compared to 73.6% 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. Additionally, a new Loan Production
Office in Nampa, Idaho has been authorized and is scheduled to open during the
next fiscal quarter of 2004. "The staff has been hired and offices are being
identified. The Nampa, Idaho market is adjacent to the Boise, Idaho market
and is a logical expansion of our presence in Idaho," said Conklin.
Total assets were $735.3 million at September 30, 2004, an increase of
$392.2 million, or 114%, from total assets of $343.1 million at September 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 September 30, 2004 increased
$35.1 million, or 5%, from total assets at March 31, 2004 of $700.2 million.
Total loans receivable for the same period grew $46.0 million, or 9.3% from
$496.3 million at March 31, 2004 to $542.3 million at September 30, 2004."
Total branch deposits increased $279.2 million, or 135.7%, to $484.9
million at September 30, 2004 compared with $205.7 million at September 30,
2003. Other funding for the quarter ended September 30, 2004 included Federal
Home Loan Bank borrowings and brokered deposits totaling $173.5 million
compared to $100.7 million on September 30, 2003, an increase of $72.8
million, or 72.3%.
The allowance for loan and lease losses increased $3.0 million, or 82.4%,
to $6.6 million on September 30, 2004 from $3.6 million on September 30, 2003.
Total reserves represent 1.31% of net loans and 440.8% 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 $21,000 compared to $51,000 for the comparable quarter
a year ago. Of the $289,000 net charge offs for the six months ended
September 30, 2004, $193,000 consists of two commercial loans that were
totally written off; both were previously classified assets. Asset quality
remains stable." Total non-performing assets on September 30, 2004 were
$2.3 million, or 0.32% 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 September 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.
The core processing system conversion will take place during the next fiscal
quarter ending December 31, 2004. The one time expenses related to the
conversion will impact earnings in the quarter."
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 Ended Six Months Ended
September 30, September 30,
2004 2003 2004 2003
Interest Income $9,912 $5,007 $19,422 $10,105
Interest Expense 3,194 2,015 6,176 4,071
Provision for Loan
Losses 193 78 569 256
Net Interest Income
After Provision for
Loan Losses 6,525 2,914 12,677 5,778
Non-Interest Income
Gain on Sale of
Loans 178 590 682 1,370
Service Fees and
Charges 1,183 535 2,364 1,112
Commission and Other 67 33 100 67
Total Non-Interest
Income 1,428 1,158 3,146 2,549
Non-Interest Expenses
Compensation and
Related Expenses 3,424 1,956 6,842 3,876
Occupancy 715 347 1,459 698
Other 1,568 843 3,097 1,720
Total Non-Interest
Expenses 5,707 3,146 11,398 6,294
Income Tax Expense 620 232 1,248 560
Net Income $1,626 $694 $3,177 $1,473
Basic Earnings per
Share $0.56 $0.54 $1.10 $1.14
Diluted Earnings per
Share $0.54 $0.51 $1.06 $1.09
Weighted Average
Shares Outstanding-
Basic 2,893,817 1,294,267 2,880,018 1,287,650
Weighted Average
Shares Outstanding-
Diluted 3,006,158 1,366,142 3,002,147 1,353,745
Actual Shares Issued 2,962,208 1,390,492 2,962,208 1,390,492
September 30, March 31, September 30,
2004 2004 2003
Total Assets $735,277 $700,232 $343,116
Cash and Cash
Equivalents $31,040 $38,397 $34,282
Loans Receivable, net $504,535 $464,368 $256,269
Mortgage-Backed
Securities $68,217 $77,027 $7,669
Investment Securities $49,164 $38,787 $17,250
Stock in FHLB, at cost $12,737 $12,506 $5,882
Deposits $508,581 $491,035 $229,515
FHLB Advances & Other
Borrowings $149,820 $132,056 $76,972
Stockholders' Equity $70,169 $69,332 $31,393
Tangible Book Value
per Share (1) $17.33 $17.33 $24.20
FASB 115 Adjustment
after Taxes $748 $1,268 $816
Tangible Equity/ Total
Tangible Assets 7.00% 7.57% 9.15%
Tier 1 Capital to
Average Assets 6.66% 6.51% 8.36%
Risk-based Capital to
Risk-Weighted Assets 10.69% 10.50% 13.55%
Number of full-time
equivalent Employees 259 247 140
(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) 9/04--74,971 shares, 3/04 -- 79,149 shares, 9/03 --
83,330 shares.
FINANCIAL STATISTICS
(ratios annualized) Three Months Ended Fiscal Six Months Ended
September 30, Year Ended September 30,
2004 2003 March 31, 2004 2003
2004
Return on Average
Assets 0.89% 0.81% 0.90% 0.88% 0.87%
Return on Average
Tangible Equity 13.02% 8.88% 11.17% 12.89% 9.50%
Average Tangible
Equity/Average
Tangible Assets 7.02% 9.17% 8.19% 7.06% 9.18%
Average Equity/Average
Assets 9.62% 9.17% 9.17% 9.75% 9.18%
Average Tangible
Equity/Average Loans 10.01% 11.83% 11.37% 10.07% 11.80%
Efficiency Ratio (2) 68.54% 73.63% 70.44% 67.65% 71.24%
Non-Interest Expenses
/ Average Assets 3.12% 3.69% 3.43% 3.17% 3.73%
Net Interest Margin
(3) 4.23% 4.00% 4.17% 4.27% 4.05%
Average Interest
Earning Assets /
Average Deposits
and Other
Borrowed Funds 112.61% 115.75% 102.09% 113.66% 115.59%
Six Months Fiscal Year Six Months
Ended Ended Ended
September 30, March 31, September 30,
2004 2004 2003
LOANS
(unaudited) (in thousands except
share and per share data)
LOAN ORIGINATIONS (4):
Residential loan
centers $136,765 $244,456 $138,412
Consumer loan
centers 26,642 16,364 3,844
Agricultural loan
centers 4,548 8,048 4,600
Commercial loan
centers 64,681 86,929 65,757
Total Loan
Originations $232,636 $355,797 $212,613
LOAN PORTFOLIO
ANALYSIS:
Real estate loans:
Residential $114,923 $112,312 $45,612
Construction 79,638 68,236 57,995
Agricultural 19,387 18,568 15,805
Commercial 137,336 122,132 71,095
Total real estate
loans 351,284 321,248 190,507
Consumer and other
loans:
Home equity 33,331 25,599 15,153
Agricultural
operating 30,088 24,876 13,748
Commercial 81,604 75,878 48,531
Other consumer 41,464 43,425 6,995
Total consumer
and other loans 186,487 169,778 84,427
Loans held for sale-
residential real
estate 4,496 5,253 9,560
Total Loans Receivable $542,267 $496,279 $284,494
Six Months Fiscal Year Six Months
Ended Ended Ended
September 30, March 31, September 30,
2004 2004 2003
ALLOWANCE FOR LOAN
LOSSES:
Balance at Beginning
of Period $6,314 $3,414 $3,414
Purchased 0 2,863 0
Provision for Loan
Losses 569 395 256
Charge Offs (Net of
Recoveries) (289) (358) (54)
Balance at End of
Period $6,594 $6,314 $3,616
Loan Loss Allowance /
Net Loans 1.31% 1.36% 1.41%
Loan Loss Allowance /
Non-Performing Loans 440.78% 199.37% 204.87%
(2) Calculation is non-interest expense divided by tax equivalent
non-interest income and net interest income.
(3) Calculation is tax equivalent net interest income divided by total
interest-earning assets.
(4) Loan originations are based upon new production.
NON-PERFORMING ASSETS:
Six Months Fiscal Year Six Months
Ended Ended Ended
September 30, March 31, September 30,
2004 2004 2003
Accruing Loans - 90
Days Past Due $0 $0 $0
Non-accrual Loans 1,496 2,900 1,765
Total Non-performing
Loans 1,496 2,900 1,765
Restructured Loans on
Accrual 306 152 284
Real Estate Owned
(REO) 493 552 664
Repossessed Assets 34 52 0
Total Non-performing
Assets $2,329 $3,656 $2,713
Total Non-performing
Assets/Total Assets 0.32% 0.52% 0.79%
Loan and REO Loss
Allowance as a % of
Non-
Performing Assets 283.13% 160.95% 133.28%
AVERAGE BALANCES,
INTEREST AVERAGE
YIELDS/COSTS
Six Months Fiscal Year Six Months
Ended Ended Ended
September 30, March 31, September 30,
2004 2004 2003
Average Interest
Earning Assets:
Average Loans
Receivable:
Average Mortgage Loans
Receivable $116,399 $74,416 $47,295
Average Commercial
Loans Receivable 206,165 150,557 122,897
Average Construction
Loans Receivable 48,958 36,356 33,559
Average Consumer Loans
Receivable 73,029 43,063 24,436
Average Agricultural
Loans Receivable 47,769 37,547 30,858
Average Unearned Loan
Fees and Discounts,
Allowance for
Loan Losses, and
Other (8,198) (6,350) (4,804)
Total Average Loans
Receivable, net 484,122 335,589 254,241
Average Loans Held for
Sale 5,597 7,584 8,607
Average Mortgage-
backed Securities 72,236 35,869 8,808
Average Investment
Securities 44,200 24,840 17,146
Average Other Earning
Assets 38,514 35,999 21,391
Total Average Interest
Earning Assets 644,669 439,881 310,193
Average Non-Interest
Earning Assets 74,071 44,684 27,531
Total Average Assets $718,740 $484,565 $337,724
Average Interest
Bearing Liabilities:
Average Passbook, NOW,
and Money Market
Accounts $225,390 $137,025 $74,657
Average Certificates
of Deposits 196,747 149,626 112,975
Average Advances from
FHLB and Other 145,040 101,106 80,732
Total Average Interest
Bearing Liabilities 567,177 387,757 268,364
Average Non-Interest
Bearing Deposits 74,344 43,107 32,948
Average Deposits and
Other Borrowed Funds 641,521 430,864 301,312
Average Non-Interest
Bearing Liabilities 7,164 6,638 5,405
Total Average
Liabilities 648,685 437,502 306,717
Total Average Equity 70,055 47,064 31,007
Total Average
Liabilities and
Equity $718,740 $484,566 $337,724
Total Tangible Average
Equity $49,310 $39,030 $31,007
Interest Rate Yield on
Earning Assets 6.19% 6.41% 6.68%
Interest Rate Expense
on Deposits and Other
Borrowed Funds 1.93% 2.31% 3.03%
Interest Rate Spread 4.26% 4.10% 3.65%
Net Interest Margin 4.27% 4.17% 4.05%
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., +1-509-295-5100
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