PRESS
RELEASE
April 23, 2002
Contact
Jim Arneson, Chief Financial Officer
(360) 459-1100
(360) 459-0137 (fax)
First
Community Financial Group Reports 26% Increase in First
Quarter 2002 Earnings
Lacey,
Wash., April 23 -- First Community Financial Group, Inc.
("FCFG" or "the Company"), parent company
of First Community Bank of Washington (www.fcbonline.com)
today announced earnings for the quarter ended March 31, 2002
of $1,346,000. This is an increase of $275,000, or 26% over
the quarter ended March 31, 2002. Earnings per diluted share
amounted to $0.60 for the quarter ended March 31, 2002, up 25%
from the $0.48 reported in the first quarter of 2001.
Total
assets climbed during the quarter to $372,101,000, an increase
of $7,478,000, or 2% over the December 31, 2001 balance of
$364,623,000. Total loans were flat during the quarter,
finishing the period at $287,631,000. Deposits declined one
percent, or $3,409,000 during the quarter to $310,321,000 as
the Company took advantage of more attractive rates in the
wholesale funding markets.
Net
interest income for the first quarter of 2002 increased 20%,
or $888,000 over the first quarter of 2001. This increase
resulted primarily from a decrease in interest rates, which
had a more pronounced effect on interest-bearing liabilities
than on interest earning assets. The Company's small loan
product also had a significant impact on the growth in net
interest income. Small loans contributed $1,156,000 to net
interest income in the first quarter of 2001, an increase of
$507,000 from the $649,000 contribution in the quarter ended
March 31, 2001.
Interest
income for the three months ended March 31, 2002 decreased
$230,000, or 3%, from the same period of the prior year.
Increased volume of earning assets provided an additional
$3,134,000 of interest income, which was more than offset by
the $3,364,000 reduction in interest income due to the reduced
earnings rate of these assets.
Total
interest expense for the three months ended March 31, 2002
decreased $1,118,000, or 39%, from the comparable period of
the prior year. The decrease in the average interest rate paid
on deposits and borrowings, which declined 213 basis points,
from 4.68% in the first quarter of 2001 to 2.55% in the first
quarter of 2002, produced a reduction interest expense of
$1,973,000. Of this amount, $855,000 was offset by an increase
in the volume of these liabilities.
Non-interest
income for the quarter ended March 31, 2002 was $1,816,000, a
22% or $325,000 increase, over the same period for 2001.
Service charges, primarily due to the implementation of a new
overdraft product in the third quarter of 2001, increased
$265,000, or 58%, over the first quarter of 2001. Origination
fees on mortgage loans sold continued their strong
performance, increasing by $131,000, or 31% over the same
period in 2001.
Non-interest
expenses for the first quarter of 2002 increased by $340,000
to $4,459,000, an increase of 8% over the quarter ended March
31, 2001. Salaries and employee benefits increased by $66,000,
or 3%. Occupancy, reflecting the operation of the additional
branches not in operation for the same period in 2001,
increased $75,000, or 13%. Other expense increased by
$199,000, or 15% from the prior year, primarily due to
increased operational costs associated with the new branches
and expansion of the small loan program.
The
ratio of non-performing assets to total assets improved during
2001, from 1.92% at the beginning of the year to 1.78% at
December 31, 2001. Total non-performing assets amounted to
$6,508,000 million at year's end, an increase of 5% over prior
year. This compares favorably with the 14% overall growth in
the loan portfolio. "Given the weakness in the national
and local economies last year, we're pleased to show
improvement in credit quality," said Jon M. Jones,
Executive Vice President and Chief Lending Officer for First
Community Bank. In keeping pace with the growth of the loan
portfolio, and allowing for continued weakness in the economy,
the allowance for credit losses increased 17% during 2001,
ending the year at $4,088,000. Net charge-offs for the year
totaled $1,131,000, which was down 50% from net charge-offs in
the year 2000.
The
Company's capital position also continues to grow stronger,
increasing $4,422,000 to $38,795,000 in 2001 after payment of
dividends totaling $0.40 per share, or $874,000 during the
year. Despite the strong asset growth in 2001, the ratio of
total capital to risk weighted assets rose from 10.39% at the
end of 2000 to finish the year at 10.52%.
First
Community Financial Group, Inc., through its wholly owned
subsidiary, First Community Bank of Washington, has 19 offices
in four western Washington counties and offers a full spectrum
of financial services including commercial, construction,
residential and consumer lending, deposit products and other
banking services. The bank provides a broad range of
investment services through its subsidiary FCB Financial
Services, Inc. Further information about the bank may be found
on the Internet at www.fcbonline.com.
Note
Regarding Forward-Looking Information
This
news release may contain statements that are not historical in
nature, including the discussions of the adequacy of the
Company's capital resources and allowance for credit losses,
are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 ("PLSRA").
Forward-looking statements are subject to the risks and
uncertainties that may cause actual future results to differ
materially. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only
as of the date of this news release. FCFG does not
undertake any obligation to publicly release any revisions to
forward-looking statements contained in this release, with
respect to events or circumstances after the date of this
release, or to reflect the occurrence of unanticipated events.
Such risks and uncertainties with respect to the Company
include those related to the economic environment,
particularly in the region in which the Company operates,
competitive products and pricing, fiscal and monetary policies
of the federal government, changes in government regulations
affecting financial institutions, including regulatory fees
and capital requirements, changes in prevailing interest
rates, acquisitions and the integration of acquired
businesses, credit risk management and asset/liability
management, the financial and securities markets, and the
availability of and costs associated with sources of
liquidity.
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