CLARKSTON, Wash., Oct. 28 /PRNewswire-FirstCall/ -- FirstBank NW Corp.
(Nasdaq: FBNW), the holding company for FirstBank Northwest, today reported
net income of $694,000, or $.51 per diluted share, in its second fiscal
quarter ended September 30, 2003, compared to $645,000, or $.48 per diluted
share, in the like quarter a year ago.
FirstBank also announced its Board of Directors has declared a regular
quarterly cash dividend of $.15 per common share. The dividend will be paid
December 5, 2003 to shareholders of record at November 20, 2003. This marks
the 25th regular quarterly cash dividend since FirstBank's conversion to the
stock form of ownership in July 1997.
"Net income slowed this quarter compared to last quarter primarily due to
reduced gain on sale of loans," noted Larry K. Moxley, Executive Vice
President and Chief Financial Officer. "The volume of mortgage loan
originations have come down from peak volumes. Additionally, the net interest
margin did not benefit from loan growth as previously experienced," said
Moxley.
Non-interest expense, or operating expense, increased to $3.15 million for
the quarter, compared to $2.86 million a year ago. FirstBank's efficiency
ratio was 73.6% in its second fiscal quarter of 2004, compared to 69.6% 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, and the additional fixed cost of branch
remodels and new construction recently completed and currently underway;
construction of a new branch in Hayden, Idaho was started in September 2003.
"Asset growth as of September 30, 2003 was $17.3 million, or a 5.3% growth
over September 30, 2002, which was primarily driven by continued loan growth,"
said Clyde E. Conklin, President and Chief Executive Officer. "However,"
continued Conklin, "net loan growth for the second fiscal quarter ending
September 30, 2003 was ($8.7) million, down 3.3% over total net loans for the
quarter ending June 30, 2003. The reduction resulted from loan pay downs and
reduced funding of new booked loans over the quarter. A majority of new loans
booked were operating loans, which didn't fund in this period. Additionally,
loan payoffs were higher, which is attributed to the recent loss of two
commercial lending officers."
Total branch deposits were $205.7 million on September 30, 2003 compared
with $193.2 million on September 30, 2002; a growth of 6.5%. Other funding
included Federal Home Loan Bank borrowings and brokered deposits totaling
$100.7 million on September 30, 2003 compared to $97.8 million on September
30, 2002.
Allowance for loan and lease losses increased to $3.616 million on
September 30, 2003 from $2.884 million on September 30, 2002; an increase of
25%. Total allowance reserves represent 1.41% of net loans and 133% of
non-performing assets. Non-performing assets increased to $2.713 million at
September 30, 2003 compared to $2.308 million at September 30, 2002.
"Non-performing assets of $2.713 reported for the quarter ending September 30,
2003 is up from $2.347 million reported in the prior quarter ending June 30,
2003," noted Conklin. "The increase is contained substantially within the
REOs, which increased from $120,000 on June 30, 2003 to $664,000 on September
30, 2003. The REOs consist of one commercial property valued at $360,000 and
three residential real estate properties value at $304,000. Losses on REOs
are expected to be minimal," said Conklin. "Allowances for loan losses remain
adequate for the level of non-performing assets."
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank Northwest is based in Clarkston, Washington, and is known as the
local community bank, offering its customers highly personalized service in
the many communities it serves. FBNW shares closed at $28.65 per share, or
118% of book value.
The merger of FirstBank NW Corp. and its subsidiary, FirstBank Northwest,
with Oregon Trail Financial Corp. and its subsidiary, Pioneer Bank has
received all regulatory approvals. It is anticipated that closing will occur
in late October 2003 in compliance with the Definitive Merger Agreement dated
February 24, 2003.
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,
2003 2002 2003 2002
Interest Income $5,007 $5,153 $10,105 $10,228
Interest Expense 2,015 2,250 4,071 4,477
Provision for Loan Losses 78 228 256 438
Net Interest Income After
Provision for Loan Losses 2,914 2,675 5,778 5,313
Non-Interest Income
Gain on sale of loans 590 505 1,370 924
Gain on sale of securities, net 0 0 0 0
Mortgage Servicing Fees 14 45 44 92
Service fees and charges 521 498 1,068 958
Commission and other 33 35 67 84
Total Non-Interest Income 1,158 1,083 2,549 2,058
Non-Interest Expenses
Compensation and Related
Expenses 1,956 1,777 3,876 3,465
Occupancy 347 298 698 625
Other 843 786 1,720 1,544
Total Non-Interest Expense 3,146 2,861 6,294 5,634
Income Tax Expense 232 252 560 461
Net Income $694 $645 $1,473 $1,276
Basic Earnings per Share $0.54 $0.50 $1.14 $0.98
Diluted Earnings per Share $0.51 $0.48 $1.09 $0.95
Proforma Basic Cash Earnings
per Share (A) $0.56 $0.53 $1.29 $1.04
Proforma Diluted Cash Earnings
per Share (A) $0.54 $0.51 $1.23 $1.00
Weighted Average Shares
Outstanding - Basic 1,294,267 1,290,589 1,287,650 1,296,270
Weighted Average Shares
Outstanding - Diluted 1,366,142 1,333,078 1,353,745 1,345,830
Actual Shares Issued 1,390,492 1,403,592 1,390,492 1,403,592
Sept. 30, March 31, Sept. 30,
2003 2003 2002
Total Assets $343,116 $332,398 $325,816
Cash and Cash Equivalents $34,282 $24,741 $28,259
Loans Receivable, net $256,269 $257,019 $249,921
Mortgage-Backed Securities $7,669 $9,618 $10,973
Investment Securities $17,250 $16,813 $14,057
Stock in FHLB, at cost $5,882 $5,731 $5,543
Deposits $229,515 $214,340 $210,705
FHLB Advances & Other Borrowings $76,972 $81,816 $80,224
Stockholders' Equity $31,393 $30,064 $29,369
Book Value per Share (B) $24.20 $23.24 $22.36
FASB 115 Adjustment after Taxes $816 $1,035 $1,198
Equity/ Total Assets 9.15% 9.04% 9.01%
Tier 1 Capital to Average Assets 8.36% 8.41% 8.56%
Risk-based Capital to Risk-Weighted
Assets 13.55% 13.11% 13.12%
Number of full-time equivalent
Employees 140 137 135
(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) 9/03--83,330 shares, 3/03 -- 87,511 shares, 9/02 -- 90,140
shares.
FINANCIAL STATISTICS
(ratios annualized)
Fiscal
Three Months Year Six Months
Ended Ended Ended
September 30, March 31, September 30,
2003 2002 2003 2003 2002
Return on Average Assets 0.81% 0.82% 0.87% 0.87% 0.83%
Return on Average Equity 8.88% 8.88% 9.49% 9.50% 8.91%
Average Equity/Average Assets 9.17% 9.24% 9.16% 9.18% 9.27%
Average Equity/Average Loans 11.83% 11.78% 12.00% 11.80% 11.85%
Efficiency Ratio (C) 73.63% 69.58% 68.04% 71.24% 69.87%
Non-Interest Expenses /
Average Assets 3.69% 3.64% 3.57% 3.73% 3.64%
Net Interest Margin (D) 4.00% 4.01% 4.16% 4.05% 4.17%
Average Interest Earning
Assets / Average Deposits
and Other Borrowed Funds 115.75% 104.29% 114.96% 115.59% 104.43%
Fiscal
Six Months Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2003 2003 2002
LOANS
(unaudited) (in thousands except
share and per share data)
LOAN ORIGINATIONS (E):
Residential loan centers $138,412 $206,806 $94,451
Consumer loan centers 3,844 12,861 7,670
Agricultural loan centers 4,600 27,377 11,698
Commercial loan centers 65,757 96,525 46,224
Total Loan Origination $212,613 $343,569 $160,043
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $45,612 $50,781 $56,792
Construction 57,995 46,836 34,060
Agricultural 15,805 15,921 16,609
Commercial 71,095 68,125 59,037
Total real estate loans 190,507 181,663 166,498
Consumer and other loans:
Home equity 15,153 19,924 23,640
Agricultural operating 13,748 13,000 14,359
Commercial 48,531 50,603 44,054
Other consumer 6,995 7,843 8,547
Total consumer and other loans 84,427 91,370 90,600
Loans held for sale-residential real
estate 9,560 5,214 11,858
Total Loans Receivable $284,494 $278,247 $268,956
Fiscal
Six Months Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2003 2003 2002
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $3,414 $2,563 $2,563
Provision for Loan Losses 256 1,033 438
Charge offs (Net of Recoveries) (54) (182) (117)
Balance at End of Period $3,616 $3,414 $2,884
Loan Loss Allowance / Net Loans 1.41% 1.33% 1.15%
Loan Loss Allowance / Non-Performing
Loans 204.87% 272.90% 165.08%
(C) Calculation is non-interest expense divided by tax equivalent
non-interest income and net interest income.
(D) Calculation is tax equivalent net interest income divided by total
interest-earning assets.
(E) Loan originations are based upon new production.
NON-PERFORMING ASSETS: Fiscal
Six Months Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2003 2003 2002
Accruing Loans - 90 Days Past Due $0 $0 $0
Non-accrual Loans 1,765 1,251 1,747
Total Non-performing Loans 1,765 1,251 1,747
Restructured Loans on Accrual 284 442 430
Real Estate Owned (REO) 664 120 131
Total Non-performing Assets $2,713 $1,813 $2,308
Total Non-performing Assets/Total Assets 0.79% 0.55% 0.71%
Loan and REO Loss Allowance as a % of
Non-Performing Assets 133.28% 188.31% 124.96%
AVERAGE BALANCES, INTEREST AVERAGE
YIELDS/COSTS
Fiscal
Six Months Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2003 2003 2002
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage Loans receivable $47,295 $55,975 $58,923
Average Commercial Loans receivable 122,897 109,559 103,235
Average Construction Loans receivable 33,559 19,750 13,750
Average Consumer Loans receivable 24,436 31,085 32,495
Average Agricultural Loans receivable 30,858 30,894 31,065
Average unearned loan fees and
discounts, allowance for loan losses,
and other (4,804) (3,814) (3,411)
Total Average Loans receivable, net 254,241 243,449 236,057
Average Loans Held for Sale 8,607 6,483 5,801
Average Mortgage-backed securities 8,808 10,832 11,225
Average Investment securities 17,146 14,554 13,018
Average Other earning assets 21,391 21,540 22,110
Total Average Interest Earning Assets 310,193 296,858 288,211
Average Non-Interest Earning Assets 27,531 21,880 20,984
Total Average Assets $337,724 $318,738 $309,195
Average Interest Bearing Liabilities:
Average Passbook, NOW, and money
market accounts $74,657 $67,522 $64,532
Average Certificate of deposits 112,975 108,406 106,788
Average Advances from FHLB and other 80,732 82,292 81,598
Total Average Interest Bearing
Liabilities 268,364 258,220 252,918
Average Non-Interest Bearing Deposits 32,948 26,140 23,080
Average Deposits and Other Borrowed
Funds 301,312 284,360 275,998
Average Non-Interest Bearing
Liabilities 5,405 5,169 4,544
Total Average Liabilities 306,717 289,529 280,542
Total Average Equity 31,007 29,209 28,653
Total Average Liabilities and Equity $337,724 $318,738 $309,195
Interest Rate Yield on Earning Assets 6.68% 7.10% 7.27%
Interest Rate Expense on Deposits and
Other Borrowed Funds 3.03% 3.37% 3.24%
Interest Rate Spread 3.65% 3.73% 4.03%
Net Interest Margin 4.05% 4.16% 4.17%
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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