Exhibit 99.1
FIRSTBANK NW CORP.
Annual Stockholders' Meeting
July 21, 2004
FirstBank Northwest
currently has 20 branch
locations in Washington,
Oregon and Idaho
[MAP GRAPHIC OMITTED]
2
TOTAL ASSET
GROWTH
M $700------------------------------------------------------$700----
i $600---------------------------------------------------------------
l $500---------------------------------------------------------------
l $400---------------------------------------------------------------
$332
i $308
$300---------------------------------------------------------------
o $281
$248
n $200---------------------------------------------------------------
s $100---------------------------------------------------------------
$ 0---------------------------------------------------------------
FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Fiscal Year End is March 31
3
LOAN GROWTH
5 Year Compounded Net Loan Growth 19.8%
(4 Year Compounded Loan Growth Before Acquisition 8.1%)
M $500--------------------------------------------------------------
$464
i $400---------------------------------------------------------------
l $300---------------------------------------------------------------
$257
l $238
$219
i $200---------------------------------------------------------------
$188
o $100---------------------------------------------------------------
n $ 0---------------------------------------------------------------
s FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Fiscal Year End is March 31
4
LOAN PORTFOLIO DIVERSIFICATION
FY 2000 (3/31/00) FY 2004 (3/31/04)
$187.7 Million Total Loans $496.3 Million Total Loans
[PIE CHART OMITTED] [PIE CHART OMITTED]
Residential Construction Agricultural Commercial Consumer
5
NEW LOAN ORIGINATIONS
[GRAPAHIC OMITTED]
Residential Construction Agricultural Commercial Consumer
Anticipate growth in commercial loan originations from Boise LPO
Anticipate growth in residential RE term loan originations from
Boise & Spokane
LPO
6
DEPOSIT GROWTH
5 Year Compounded Growth 27.6%
(4 Year Compounded Growth Before Acquisition 10.2%)
M $500--------------------------------------------------------------
$491
i $400---------------------------------------------------------------
l $300---------------------------------------------------------------
$214
i $200---------------------------------------------------------------
$196
o $158
$145
n $100---------------------------------------------------------------
s $ 0---------------------------------------------------------------
FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Fiscal Year End is March 31
7
DEPOSIT DIVERSIFICATION
Majority of Funding from Core Deposits
FY 2004 (3/31/04) FY 2000 (3/31/00)
$491.0 Million Total Deposits $144.9 Million Total Deposits
[PIE CHART OMITTED] [PIE CHART OMITTED]
Certificates of Deposit Core Deposits
8
TOTAL FUNDING
Interest Rate Risk 3/31/04, Asset Sensitive
Well Balanced: 100 down = -1.59% NII - 1 YR
200 up = 1.57% NII - 1 YR
Cost of Funds Managed within Policy Limits using Branch
Deposits, FHLB, and Brokered Funds
[PIE CHART OMITTED]
Branch Deposits FHLB Brokered CDs
9
NET INTEREST MARGIN
Maintained Net Interest Margin
5.00%---------------------------------------------------------------------------
4.50%---------------------------------------------------------------------------
4.17%
4.16% 4.16%
4.00%---------------------------------------------------------------------------
3.96%
3.83%
3.50%---------------------------------------------------------------------------
3.00%---------------------------------------------------------------------------
FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Fiscal Year End is March 31
10
NET INCOME GROWTH
5 Year Compounded Growth 20.6%
Franchise Investment Impacts Net Income
(4 Year Compounded Growth Before Acquisition 12.9%)
M $5--------------------------------------------------------------------
$4.358
i $4--------------------------------------------------------------------
l $3--------------------------------------------------------------------
$2.772
l $2.376
$2--------------------------------------------------------------------
i $1.882
$1.705
o $1--------------------------------------------------------------------
n $0--------------------------------------------------------------------
s FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Fiscal Year End is March 31
11
EARNINGS PER SHARE
FULLY DILUTED
5 Year EPS Growth of 15.2%
Driven by Net Income Growth/Share Repurchases
$2.50-----------------------------------------------------------------
$2.12
$2.07
$2.00-----------------------------------------------------------------
$1.70
$1.50-----------------------------------------------------------------
$1.30
$1.06
$1.00-----------------------------------------------------------------
$0.62
$0.54
$0.50-----------------------------------------------------------------
$0.44
$0.38
$0.36
$0.00-----------------------------------------------------------------
FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Fiscal Year End is March 31
-[]- EPS -[]- Dividend
12
STOCK PERFORMANCE
Average $35-------------------------------------------------------------------
Per
Share $30-------------------------------------------------------------------
Price $28.61
$25-------------------------------------------------------------------
$20.11
$20-------------------------------------------------------------------
$16.46
$15-------------------------------------------------------------------
$13.17
$11.73
$10-------------------------------------------------------------------
FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Fiscal Year End is March 31
13
BOOK VALUE
Per Share of Common Stock
$25-------------------------------------------------------------------
$23.24
$20.72
$20-------------------------------------------------------------------
$19.39
$17.33
$17.28
$15-------------------------------------------------------------------
$10-------------------------------------------------------------------
FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Fiscal Year End is March 31
14
RESERVES FOR LOAN LOSS
3/31/00 3/31/01 3/31/02 3/31/03 3/31/04
------- ------- ------- ------- -------
% to Net Loans .45% .70% 1.08% 1.33% 1.36%
% to NPA 194.7% 108.7% 228.4% 188.3% 172.7
NPA Balance $ 0.8M $ 1.5M $ 1.1M $ 1.8M $ 3.7M
M $7--------------------------------------------------------------------
$6.3
i $6--------------------------------------------------------------------
l $5--------------------------------------------------------------------
l $4--------------------------------------------------------------------
$3.4
i $3--------------------------------------------------------------------
$2.6
o $2--------------------------------------------------------------------
$1.8
n $1.6
$1--------------------------------------------------------------------
s
$0--------------------------------------------------------------------
FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Fiscal Year End is March 31
15
SHAREHOLDER VALUE
o Balance Sheet Growth Rate of 23.1%
o Earnings Per Share Growth Rate of 15.2%
o Cash Dividend Payouts Target of 30.0%; Dividend Yield of 2.3%
o Franchise Growth into Coeur d'Alene/Hayden and Boise, ID and Spokane, WA
o Acquisition of Pioneer Bank in Eastern Oregon
o Credit Quality and Reserve Allocations
o Interest Rate Risk Balance
16
FISCAL YEAR 2005 SHORT-TERM STRATEGIES
1. Meet growth of objectives:
- Meet income growth and EPS objectives
- Maximize loan portfolio growth from production in Boise and Coeur
d'Alene, ID and Spokane, WA. Focused return on those investments.
- Deposit growth objectives throughout franchise with specific emphasis
on core deposits and business banking. Focused return on investments
in new Hayden and Boise branches.
- Extend additional investment further out on time horizon. Managed
approach to investment drag on current income.
- Maximize efficiencies of size and scale through integration of Pioneer
Bank.
2. Complete the successful integration of Pioneer Bank into FirstBank and
complete the conversion of the core processing system.
- Seek to minimize the impact to customer
- Technology strategies to accommodate growth;' scaleable to $1 billion
or larger
- To be completed during Fiscal Year 2005
3. Develop and implement Information Technology Strategic Plan
- Scaleable to $1 billion or larger institution
- Compatible with Strategic Business Plan
- Attain maximum efficiency
- Compliant with security policies and procedures, disaster recovery
4. Compliance Initiatives
- Sarbanes-Oxley
- FDICIA
17
Price and Volume
[GRAPHIC OMITTED]
Reported Vol. = 11,257,626
- -- Stock Price [ ] Volume Est. # of Shrs. Traded = 5,628,813
Shares Traded / Shares Outstanding = 196.54%
Source: FactSet
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Comparative Price Appreciation
[GRAPHIC OMITTED]
- -- FBNW -- S&P 500 -- NASDAQ Bank Index -- Composite -- S&P Bank Index
COMPOSITE = EBMT, FMSB, HFWA, HRZB, RPFG, RVSB, STSA, TSBK
Source: FactSet
19
Selected Northwestern Thrifts
Data as of or for the Period Ending March 31, 2004
Pricing Data as of July 16, 2004
Dollar Values in Millions
Tangible
Equity/
Total Tangible LTM LTM
Name City St. Assets ($) Assets (%) ROAA (%) ROAE (%)
- -------------------------------- ---------- --- ---------- ---------- -------- --------
Sterling Financial Corp. Spokane WA 6,095.2 4.72 0.86 13.58
First Mutual Bancshares Inc. Bellevue WA 909.3 5.94 1.03 17.44
Horizon Financial Corp. Bellingham WA 858.9 12.67 1.55 11.93
Rainier Pacific Finl Group Inc. Fife WA 729.6 15.83 -0.37 -3.28
Heritage Financial Corp. Olympia WA 650.6 8.18 1.48 13.75
Riverview Bancorp Inc. Vancouver WA 520.5 10.81 1.35 10.60
Timberland Bancorp Inc. Hoquiam WA 446.3 16.02 1.29 7.50
Eagle Bancorp (MHC) Helena MT 206.6 12.17 0.89 7.58
-----------------------------------------------------------------------
HIGH 6,095.2 16.02 1.55 17.44
LOW 206.6 4.72 -0.37 -3.28
MEAN 1,302.1 10.79 1.01 9.89
MEDIAN 690.1 11.49 1.16 11.27
-----------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
FirstBank NW Corp. Clarkston WA 700.2 7.11 0.90 9.26%
Ranking out of 9: 5 7 6 8
- ----------------------------------------------------------------------------------------------------------
(cont'd)
Price/ Price/ Price/
Tangible LTM Est. EPS Market
Name BV (%) EPS (x) 2004 (x) Cap. ($)
- -------------------------------- -------- ------- -------- --------
Sterling Financial Corp. 258.34 14.94 13.00 724.6
First Mutual Bancshares Inc. 251.03 16.26 14.86 135.7
Horizon Financial Corp. 187.99 16.38 16.11 204.5
Rainier Pacific Finl Group Inc. 119.70 -- 36.38 138.2
Heritage Financial Corp. 215.54 13.59 13.39 113.5
Riverview Bancorp Inc. 188.24 15.03 14.82 103.9
Timberland Bancorp Inc. 121.67 15.37 14.86 87.0
Eagle Bancorp (MHC) 154.57 20.92 -- 38.9
-----------------------------------------------------
HIGH 258.34 20.92 36.38 724.6
LOW 119.70 13.59 13.00 38.9
MEAN 187.14 16.07 17.63 193.3
MEDIAN 188.12 15.37 14.86 124.6
-----------------------------------------------------
- ----------------------------------------------------------------------------
FirstBank NW Corp. 164.41 12.74 11.07 79.4
6 8 8 8
- ----------------------------------------------------------------------------
Source: SNL Financial
20
Selected Northwestern Thrifts
Data as of or for the Period Ending March 31, 2004
Pricing Data as of July 16, 2004
Dollar Values in Millions
Net
Total Efficiency Interest LTM LTM
Name City St. Assets ($) Ratio (%) Margin (%) ROAA (%) ROAE (%)
- -------------------------------- ---------- --- ---------- --------- ---------- -------- --------
Sterling Financial Corp. Spokane WA 6,095 59.7 3.34 0.86 13.58
First Mutual Bancshares Inc. Bellevue WA 909 60.4 3.99 1.03 17.44
Horizon Financial Corp. Bellingham WA 859 49.8 4.36 1.55 11.93
Rainier Pacific Finl Group Inc. Fife WA 730 99.8 4.38 -0.37 -3.28
Heritage Financial Corp. Olympia WA 651 60.8 5.35 1.48 13.75
Riverview Bancorp Inc. Vancouver WA 520 62.0 4.76 1.35 10.60
Timberland Bancorp Inc. Hoquiam WA 446 61.5 4.57 1.29 7.50
Eagle Bancorp (MHC) Helena MT 207 69.3 3.17 0.89 7.58
-------------------------------------------------------------------------------------
HIGH 6,095.2 99.8 5.35 1.55 17.44
LOW 206.6 49.8 3.17 -0.37 -3.28
MEAN 1,302.1 65.4 4.24 1.01 9.89
MEDIAN 690.1 61.1 4.37 1.16 11.27
-------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
FirstBank NW Corp. Clarkston WA 700.2 71.6 3.93 0.90 9.26
Ranking out of 9: 5 2 7 6 6
- ------------------------------------------------------------------------------------------------------------------------
(cont'd)
Noninterest Noninterest
Income/ Expense/
Loans/ Loans/ Average Average
Name Assets (%) Deposits (%) Assets (%) Assets (%)
- -------------------------------- ---------- ------------ ---------- ----------
Sterling Financial Corp. 59.95 104.64 0.77 2.35
First Mutual Bancshares Inc. 84.47 127.09 0.38 2.55
Horizon Financial Corp. 77.97 99.91 0.87 2.44
Rainier Pacific Finl Group Inc. 61.88 133.68 0.96 5.02
Heritage Financial Corp. 82.98 96.86 1.14 3.69
Riverview Bancorp Inc. 74.16 94.35 1.34 3.60
Timberland Bancorp Inc. 75.84 106.77 1.08 3.29
Eagle Bancorp (MHC) 43.84 53.19 0.93 2.68
-----------------------------------------------------------------
HIGH 84.47 133.68 1.34 5.0
LOW 43.84 53.19 0.38 2.3
MEAN 70.14 102.06 0.93 3.2
MEDIAN 75.00 102.28 0.94 3.0
-----------------------------------------------------------------
- ----------------------------------------------------------------------------------------
FirstBank NW Corp. 67.22 95.86 1.14 3.5
6 7 3 4
- ----------------------------------------------------------------------------------------
Source: SNL Financial
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SAFE HARBOR STATEMENT
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This presentation contains forward-looking statements with respect to the
financial condition, results of operations and business of FirstBank NW Corp.
Various factors could cause actual results to differ materially from estimates.
Such factors include, but are not limited to, the following: (1) integration of
systems, policies and procedures related to the acquisition of Oregon Trail may
take longer to accomplish than expected; (2) expected cost savings or accretions
to earnings related to integration may not be fully realizable or realized
within the expected timeframes; (3) impact to operating costs, customer
retention, business disruption, and employee relationships due to integration
may be more or less than anticipated within this presentation; (4) adverse
governmental or regulatory actions including policies may be enacted; (5) the
interest rate environment may further compress margins and adversely affect net
income; (6) the risks associated with continued diversification of assets and
adverse changes to credit quality; (7) competitive pressures from other
financial services companies in FirstBank's markets may increase significantly;
and (8) the risk of an economic slowdown, either nationally or in the markets
that FirstBank does business would adversely affect credit quality and new loan
or deposit originations.
Other factors that may cause actual results to differ from forward-looking
statements are described in FirstBank's filings with the Securities and Exchange
Commission.
22
CONCLUSION
We are FirstBank
[LOGO OMITTED]
We are JustRight!
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