PRESS
RELEASE
May 01, 2003
Contact
Ken F. Parsons, Sr.
Chairman
(360) 459-1100
(360) 459-0137 (fax)
First
Community Financial Group Reports Record Quarterly Earnings
LACEY,
Wash. - May 01, 2003 - First Community Financial Group,
Inc. (“FCFG” or “the Company”), parent company of
First Community Bank of Washington (www.fcbonline.com) today
announced record earnings for the quarter ended March 31, 2003
of $1,782,000. This is an increase of $403,000, or 29%
over the quarter ended March 31, 2002. Earnings per diluted
share amounted to $0.39 for the quarter ended March 31, 2003,
up 26% from the $0.31 reported in the first quarter of 2002.
The Company previously reported record annual earnings for the
year 2002 of $6,212,000, an increase of 40% over the previous
year.
“Our
acquisition of Harbor Bank in Pierce County in the fourth
quarter of 2002 provided us with significant growth in assets
year over year, along with an excellent opportunity for
increased earnings” said Ken F. Parsons, Sr., Chairman.
“Although growth in the first quarter of 2003 has been flat
compared to our December 31, 2002 numbers, we are very pleased
that earnings continue to accelerate,” added Parsons.
For Q1
2003, return on average equity increased to 15.79%, compared
to 14.05% for the comparable period in 2002.
Return
on average assets also increased to 1.52% for the period,
compared to 1.50% for the first quarter in 2002. “We
are very pleased to report record earnings in a quarter where
we have spent significant dollars on a branding initiative
which we believe will provide a clear strategic advantage for
the company and long-term value for the shareholders” said
Jon M. Jones, President of First Community Bank. “We
are very excited about the direction we are headed”, added
Jones.
Total
assets increased $92,770,000, or 25% to $464,921,000 at March
31, 2003 from the March 31, 2002 total of $372,151,000 and
were down $9,529,000 from the December 31, 2002 total of
$474,450,000. Net loans (loans receivable less allowance
for loan losses and excluding loans held for sale) increased
$67,520,000, or 24% to $350,755,000 at March 31, 2003 from
$283,325,000 at March 31, 2002 but were down $3,430,000, or
1%from the December 31, 2002 total of $354,185,000.
Deposits increased $62,494,000, or 20%, at March 31, 2003 from
March 31, 2002 although deposits dropped $11,392,000, or 3%,
from December 31, 2002.
Net
interest income for the first quarter of 2003 increased 27%,
or $1,398,000 over the first quarter of 2002. Continued
low interest rates have continued to significantly reduce the
cost of funds as time deposits mature and are reissued at much
lower market rates. The rate environment impacts the
rate of return on loans and investments as well, but it has
been less significant in total dollars. The Company’s
small loan product has also had a positive impact on the
growth in net interest income.
Interest
income for the three months ended March 31, 2003 increased
$1,300,000, or 19%, from the same period of the prior year.
While the average rate has been decreasing, the additional
volume from the Harbor Bank acquisition has provided
additional interest income. Interest expense for the same
period decreased $98,000, or 6%.
Interest
expense reductions were realized despite additional volumes of
interest bearing liabilities, including those from the Harbor
Bank acquisition as well as expenses related to the issuance
of Trust Preferred securities in the third quarter of 2002.
Non-interest
income for the quarter ended March 31, 2003 was $2,566,000, an
increase of $750,000, or 41% over the same period in 2002.
Additional relationships from our expansion into Pierce County
have increased service charge income while low rates and
market expansion continued to fuel growth in mortgage
origination fees. Non-interest expense for the first
quarter of 2003 increased by $1,571,000 to $5,980,000
reflecting the additional locations and staff related to the
Harbor Bank acquisition and additional costs associated with
the higher mortgage volume. The increase in non-interest
expense was also due to continued investment in the
company’s branding initiative.
The
Company’s capital position also continues to grow stronger,
increasing $1,132,000 to $45,341,000 during the first quarter
of 2003 after payment of dividends totaling $0.05 per share,
or $220,000. Options being exercised contributed
$778,000 worth of capital while the stock repurchase program
accounted for 69,572 shares being repurchased and retired
which reduced capital by $1,175,000. These share
repurchases represent approximately 1.6% of the previously
outstanding shares.
First
Community Financial Group, Inc., through its wholly owned
subsidiary, First Community Bank of Washington, has 21 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.
Condensed
Statements of Condition
Condensed
Statements of Operations
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.
Back
to News Releases
