FirstBank NW Corp. Reports Strong Second Quarter Earnings and Declares Regular Quarterly Cash Dividend of $0.17 Per Share

FirstBank NW Corp. Reports Strong Second Quarter Earnings and
Declares Regular Quarterly Cash Dividend of $0.17 Per Share 


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%


DATASOURCE: FirstBank NW Corp.



CONTACT:  Larry K. Moxley, Exec. VP & CFO of FirstBank NW Corp.,

[phone]



Web site:  http://www.fbnw.com/ 

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