U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-QSB

                                   (Mark One)

    [X] Quarterly report under Section 13 or 15(d) of the Securities Exchange
                                   Act of 1934

                For the quarterly period ended December 31, 2001

       [ ] Transition report under Section 13 or 15(d) of the Exchange Act

               For the transition period from _______ to _________

                         Commission file number 0-22435

                               FIRSTBANK NW CORP.

        (Exact Name of Small Business Issuer as Specified in Its Charter)

              Washington                                    84-1389562
      (State or Other Jurisdiction of                    (I.R.S. Employer
       Incorporation or Organization)                   Identification No.)

                       920 Main Street, Lewiston, ID 83501

                     Address of Principal Executive Offices

                                 (208) 746-9610

                (Issuer's Telephone Number, Including Area Code)


                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date: Common Stock 1,359,382 shares
outstanding on February 12, 2002.

Transitional Small Business Disclosure Format (check one):

[ ] Yes        [X] No

<PAGE>

                               FIRSTBANK NW CORP.
                               TABLE OF CONTENTS

PART I.  FINANCIAL INFORMATION


                                                                            Page
Item 1.  Consolidated Financial Statements (Unaudited)

         Consolidated Statements of Financial Condition                        1

         Consolidated Statements of Income
          For the three months and nine months ended
          December 31, 2000 and 2001                                           2

         Consolidated Statements of Cash Flows
          For the nine months ended December 31, 2000 and 2001                 3

         Consolidated Statements of Comprehensive Income
          For the three months and nine months ended
          December 31, 2000 and 2001                                           4

         Notes to Consolidated Financial Statements                          5-8

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                                9-14


PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                                    15
Item 2.  Changes in Securities and Use of Proceeds                            15
Item 3.  Defaults Upon Senior Securities                                      15
Item 4.  Submission of Matters to a Vote of Security Holders                  15
Item 5.  Other Information                                                    15
Item 6.  Exhibits and Reports on Form 8-K                                     15

<PAGE>
<TABLE>
<CAPTION>

PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements

                       FirstBank NW Corp. and Subsidiaries
                 Consolidated Statements of Financial Condition
                                                                      December 31,      March 31,       December 31,
                                                                         2000             2001             2001
                                                                     -------------    -------------    -------------
                                                                      (Unaudited)                       (Unaudited)
<S>                                                                  <C>              <C>              <C>
ASSETS Cash and cash equivalents:
  Non-interest bearing deposits                                      $  12,662,785    $   8,013,411    $  15,071,601
  Interest bearing deposits                                                595,340        1,166,117          808,446
  Federal funds sold                                                       470,668        3,625,320        2,916,000
                                                                     -------------    -------------    -------------
Total cash and cash equivalents                                         13,728,793       12,804,848       18,796,047

Investment securities:
  Available-for-sale                                                    12,434,061       12,568,249       12,201,965
Mortgage-backed securities:
  Held-to-maturity                                                       2,369,605        2,335,433        2,188,978
  Available-for-sale                                                    17,836,370       17,703,893       10,036,767
Loans receivable, net (Note 2)                                         213,829,206      219,150,826      231,906,320
Accrued interest receivable                                              2,474,701        2,301,830        2,193,990
Real estate owned                                                          112,841           33,164          177,052
Stock in FHLB, at cost                                                   4,713,775        5,031,875        5,301,575
Premises and equipment, net                                              6,125,198        5,988,987        5,593,249
Income taxes receivable                                                     78,987          124,512          209,463
Cash surrender value of bank owned and other insurance policies          1,724,004        1,744,457        6,784,163
Mortgage servicing assets                                                  881,563          866,489          997,310
Other assets                                                               500,720          407,720          714,327
                                                                     -------------    -------------    -------------
TOTAL ASSETS                                                         $ 276,809,824    $ 281,062,283    $ 297,101,206
                                                                     =============    =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Deposits                                                           $ 151,618,058    $ 157,797,123    $ 178,827,821
  Advances from borrowers for taxes and insurance                          758,912        1,400,630          798,887
  Advances from FHLB and other borrowings (Note 3)                      95,027,523       90,917,023       86,749,292
  Deferred federal and state income taxes                                  634,778          772,000          430,869
  Accrued expenses and other liabilities                                 1,476,643        2,199,164        2,678,670
                                                                     -------------    -------------    -------------
Total Liabilities                                                      249,515,914      253,085,940      269,485,539
                                                                     -------------    -------------    -------------

  Commitments and contingencies (Note 4)
  Stockholders' Equity (Note 4):
  Preferred stock, $.01 par value,  500,000 shares
    authorized; 0 shares issued and outstanding                                 --               --               --
  Common stock, $.01 par value,  5,000,000 shares
    authorized; 1,983,750 shares issued; 1,440,639,
    1,441,515 and 1,356,182 shares outstanding                              19,838           19,838           19,838
  Additional paid-in-capital                                            18,801,176       18,809,135       18,839,664
  Retained earnings, substantially restricted                           16,043,322       16,376,831       17,733,127
  Unearned ESOP shares                                                  (1,074,020)      (1,053,130)        (990,470)
  Deferred compensation                                                   (688,471)        (629,381)        (452,110)
  Treasury stock, at cost; 436,797, 436,797 and 531,158
    shares                                                              (6,147,282)      (6,147,282)      (7,713,768)
  Accumulated other comprehensive income (loss)                            339,347          600,332          179,386
                                                                     -------------    -------------    -------------
Total Stockholders' Equity                                              27,293,910       27,976,343       27,615,667
                                                                     -------------    -------------    -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $ 276,809,824    $ 281,062,283    $ 297,101,206
                                                                     =============    =============    =============
</TABLE>

           See accompanying notes to consolidated financial statements

                                       1
<PAGE>
<TABLE>
<CAPTION>

                       FirstBank NW Corp. and Subsidiaries
                        Consolidated Statements of Income

                                                                Three-months ended             Nine-months ended
                                                                    December 31,                 December 31,
                                                               2000            2001          2000            2001
                                                           ------------   ------------   ------------   ------------
                                                                                  (Unaudited)
<S>                                                        <C>            <C>            <C>            <C>
Interest income:
  Loans receivable                                         $  4,621,690   $  4,374,596   $ 13,315,179   $ 13,679,272
  Mortgage-backed securities                                    360,735        201,938      1,100,361        727,998
  Investment securities                                         152,530        149,463        461,200        452,024
  Other interest earning assets                                 157,193        221,172        477,974        587,016
                                                           ------------   ------------   ------------   ------------
Total interest income                                         5,292,148      4,947,169     15,354,714     15,446,310
                                                           ------------   ------------   ------------   ------------

Interest expense:
  Deposits                                                    1,573,420      1,364,898      4,386,196      4,440,261
  Advances from FHLB and other borrowings                     1,424,118        960,259      4,230,395      3,347,244
                                                           ------------   ------------   ------------   ------------
Total interest expense                                        2,997,538      2,325,157      8,616,591      7,787,505
                                                           ------------   ------------   ------------   ------------

Net interest income                                           2,294,610      2,622,012      6,738,123      7,658,805
Provision for loan losses                                        76,128        281,268        209,442        694,823
                                                           ------------   ------------   ------------   ------------
Net interest income after provision for loan losses           2,218,482      2,340,744      6,528,681      6,963,982
                                                           ------------   ------------   ------------   ------------

Non-interest income:
  Gain on sale of loans                                         195,512        561,563        644,916      1,396,667
  Gain on sale of securities, net                                    --             --             --        175,249
  Service fees and other charges                                397,171        506,275      1,170,181      1,431,513
  Commissions and other                                          32,084         26,194         87,735         91,277
                                                           ------------   ------------   ------------   ------------
Total non-interest income                                       624,767      1,094,032      1,902,832      3,094,706
                                                           ------------   ------------   ------------   ------------

Non-interest expense:
  Compensation and employee related benefits                  1,272,525      1,488,563      3,707,574      4,395,723
  Occupancy                                                     301,908        299,139        922,888        916,379
  Other                                                         589,406        691,863      1,772,707      2,030,075
                                                           ------------   ------------   ------------   ------------
Total non-interest expense                                    2,163,839      2,479,565      6,403,169      7,342,177
                                                           ------------   ------------   ------------   ------------

Income before income tax expense                                679,410        955,211      2,028,344      2,716,511
Income tax expense                                              201,801        327,103        622,564        913,711
                                                           ------------   ------------   ------------   ------------
Net income                                                 $    477,609   $    628,108   $  1,405,780   $  1,802,800
                                                           ============   ============   ============   ============
Earnings per share (Note 5):
  Net income per share - basic                             $       0.34   $       0.47   $       1.00   $       1.31
  Net income per share - diluted                           $       0.33   $       0.45   $       0.97   $       1.28
  Weighted average shares outstanding - basic                 1,392,605      1,329,762      1,407,714      1,375,366
  Weighted average shares outstanding - diluted               1,437,455      1,382,093      1,455,257      1,408,374

</TABLE>

           See accompanying notes to consolidated financial statements

                                       2
<PAGE>
<TABLE>
<CAPTION>

                      FirstBank NW Corp. and Subsidiaries,
                      Consolidated Statements of Cash Flows

                                                                                      Nine-months ended December 31,
                                                                                           2000              2001
                                                                                      -------------    -------------
                                                                                               (Unaudited)
<S>                                                                                   <C>              <C>
Cash flows from operating activities:
  Net income                                                                          $   1,405,780    $   1,802,800
  Adjustments to reconcile net income to net cash provided by
  operating activities:
    Depreciation and amortization                                                           533,891          511,943
    Provision for loan losses                                                               209,442          694,823
    Gain on sale of loans                                                                  (644,916)      (1,396,667)
    Gain on sale of securities, net                                                              --         (175,249)
    FHLB stock dividends                                                                   (290,411)        (269,700)
    ESOP compensation expense                                                               164,224           93,189
    Other (gains) losses, net                                                                (7,046)         (14,996)
    Deferred compensation expense                                                           335,659          177,271
    Deferred income taxes                                                                    23,703          (69,337)
  Changes in assets and liabilities:
    Accrued interest receivable and other assets                                           (713,918)        (317,901)
    Advances (repayments) from borrowers for taxes and insurance                           (610,976)        (601,743)
    Accrued expenses and other liabilities                                                  179,037          480,169
    Income taxes receivable (payable)                                                        69,649          (84,951)
                                                                                      -------------    -------------
Net cash provided by operating activities                                                   654,118          829,651
                                                                                      -------------    -------------

Cash flows from investing activities:
  Proceeds from maturities of mortgage-backed securities; held-to-maturity                  109,909          141,379
  Proceeds from maturities of mortgage-backed securities; available-for-sale              1,600,961        2,239,325
  Proceeds from sale of mortgage-backed securities; available-for-sale                           --        5,271,715
  Purchase of investment securities; available for sale                                    (333,703)              --
  Proceeds from sale of loans                                                            43,335,141       73,154,341
  Other net change in loans receivable                                                  (69,342,631)     (85,526,252)
  Purchase of FHLB stock                                                                   (458,189)              --
  Proceeds from sale of premises and equipment                                                   50               --
  Purchases of premises and equipment                                                      (441,959)        (106,911)
  Purchase of bank owned and other insurance policies                                            --       (4,749,442)
  Net increase in cash surrender value of bank owned and other insurance policies           (60,333)        (290,264)
  Proceeds from sale of real estate owned                                                   216,210          177,681
                                                                                      -------------    -------------
Net cash used in investing activities                                                   (25,374,544)      (9,688,428)
                                                                                      -------------    -------------

Cash flows from financing activities:
  Cash paid for dividends                                                                  (406,998)        (446,504)
  Net increase in deposits                                                                6,711,110       21,030,697
  Advances from FHLB                                                                    985,101,809      173,167,104
  Payments on advances from FHLB                                                       (964,652,392)    (177,334,835)
  Purchase of treasury stock                                                               (800,250)      (1,566,486)
                                                                                      -------------    -------------
Net cash provided by financing activities                                                25,953,279       14,849,976
                                                                                      -------------    -------------

Net increase in cash and cash equivalents                                                 1,232,853        5,991,199

Cash and cash equivalents, beginning of period                                           12,495,940       12,804,848
                                                                                      -------------    -------------
Cash and cash equivalents, end of period                                              $  13,728,793    $  18,796,047
                                                                                      =============    =============
Supplemental disclosures of cash flow information:
  Cash paid during the period for:
    Interest                                                                          $   8,581,796    $   7,660,112
    Income taxes                                                                      $     442,242    $   1,067,999
  Noncash investing and financing activities:
    Unrealized losses on securities; available-for-sale, net of tax                   $     887,420    $     420,946
    Loans receivable charged to the allowance for loan losses                         $      94,401    $     153,448
    Transfer from loans converted to real estate acquired through foreclosure         $     320,182    $     318,261

</TABLE>

           See accompanying notes to consolidated financial statements

                                       3
<PAGE>
<TABLE>
<CAPTION>

                       FirstBank NW Corp. and Subsidiaries
                 Consolidated Statements of Comprehensive Income

                                                        Three-months ended             Nine-months ended
                                                           December 31,                   December 31,
                                                        2000          2001            2000           2001
                                                    ------------   ------------   ------------   ------------
                                                                          (Unaudited)
<S>                                                 <C>            <C>            <C>            <C>
Net income                                          $    477,609   $    628,108   $  1,405,780   $  1,802,800
Other comprehensive income (loss), net of tax:
   Change in unrealized losses on securities;
     available-for-sale, net of tax expense
     (benefit) of $497,778, $(251,174), $574,076,
     and $(182,626)                                      769,477       (388,271)       887,420       (420,946)
                                                    ------------   ------------   ------------   ------------
Comprehensive income                                $  1,247,086   $    239,837   $  2,293,200   $  1,381,854
                                                    ============   ============   ============   ============
</TABLE>

           See accompanying notes to consolidated financial statements

                                       4
<PAGE>
<TABLE>
<CAPTION>

                       FIRSTBANK NW CORP. AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1)      BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with Generally Accepted Accounting Principles (GAAP) for interim
financial information and with the instructions to Form 10-QSB and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by GAAP for complete financial statements. These statements
should be read in conjunction with the consolidated financial statements and
related notes included in the Company's Form 10-KSB for the year ended March 31,
2001. In the opinion of management, all adjustments (consisting of normal
recurring adjustments) necessary for a fair presentation have been included. The
results of operations and other data for the nine months ended December 31, 2001
are not necessarily indicative of results that may be expected for the entire
fiscal year ending March 31, 2002.

The unaudited consolidated financial statements of FirstBank NW Corp. (the
"Company") include the accounts of its wholly-owned subsidiary, FirstBank
Northwest (the "Bank") and wholly-owned subsidiary, TriStar Financial
Corporation. All significant intercompany accounts and transactions have been
eliminated in consolidation.

(2)      LOANS RECEIVABLE

Loans receivable at December 31, 2000, March 31, 2001, and December 31, 2001
consists of the following:

                                                           December 31,     March 31,    December 31,
                                                              2000            2001          2001
                                                           ------------   ------------   ------------
                                                           (Unaudited)                   (Unaudited)
<S>                                                        <C>            <C>            <C>
         Real estate loans:
           Residential                                     $ 74,009,296   $ 74,892,160   $ 69,747,167
           Commercial                                        34,166,914     37,968,941     47,302,624
           Agricultural                                      15,480,937     15,383,011     15,822,350
           Construction                                       7,065,189      8,028,181      9,467,728

         Other loans:
           Commercial (non-real estate)                      39,704,152     41,788,884     49,380,052
           Other consumer                                     8,450,440      8,255,142      8,097,156
           Home equity                                       27,079,447     27,322,297     25,632,172
           Agricultural operating                            12,419,883     10,938,342     12,394,007
                                                           ------------   ------------   ------------

         Total loans receivable                             218,376,258    224,576,958    237,843,256

         Less:
           Loans in process                                   2,325,832      3,248,216      2,941,713
           Unearned loan fees and discounts                     448,000        419,653        628,816
           Allowance for loan losses                          1,726,967      1,758,263      2,366,407
           Other                                                 46,253             --             --
                                                           ------------   ------------   ------------

         Loans receivable, net                             $213,829,206   $219,150,826   $231,906,320
                                                           ============   ============   ============

</TABLE>

                                       5
<PAGE>
<TABLE>
<CAPTION>

(3)      ADVANCES FROM FEDERAL HOME LOAN BANK

The Bank utilizes advances from the FHLB-Seattle to supplement its supply of
lendable funds and to meet deposit withdrawal requirements. The FHLB-Seattle
functions as a central reserve bank providing credit for savings associations
and certain other member financial institutions. As a member of the
FHLB-Seattle, the Bank is required to own capital stock in the FHLB-Seattle and
is authorized to apply for advances on the security of such stock and certain of
its mortgage loans and other assets (principally securities that are obligations
of, or guaranteed by, the U.S. Government) provided certain creditworthiness
standards have been met. Advances are made pursuant to several different credit
programs. Each credit program has its own interest rate and range of maturities.
Depending on the program, limitations on the amount of advances are based on the
financial condition of the member institution and the adequacy of collateral
pledged to secure the credit. The Bank is currently authorized to borrow from
the FHLB up to an amount equal to 42% of total assets, providing that the Bank
holds sufficient collateral. Advances from Federal Home Loan Bank at December
31, 2000, March 31, 2001, and December 31, 2001 were $89,527,523, $90,917,023,
and $86,749,292, respectively.

Scheduled maturities of advances from Federal Home Loan Bank were as follows:


                                                                One Year to    Five Years to
                                            Less than One      Less than Five  Less than Ten     Greater than
At December 31, 2000:                            Year              Years           Years           Ten Years
                                            --------------    --------------   --------------   -------------
<S>                                         <C>               <C>              <C>              <C>
Maturities of advances from FHLB            $   77,444,055    $   10,000,000   $      750,000   $   1,333,468
Range of interest rates                       5.08% - 6.83%     5.37% - 6.62%         5.19%           6.66%
Weighted average interest rate                     6.47%             6.13%            5.19%           6.66%
Percentage of total advances                      86.50%            11.17%            0.84%           1.49%

                                                                One Year to    Five Years to
                                            Less than One      Less than Five  Less than Ten     Greater than
At March 31, 2001:                               Year              Years           Years           Ten Years
                                            --------------    --------------   --------------   -------------

Maturities of advances from FHLB            $   48,372,055    $   23,950,000   $   17,274,000   $   1,320,968
Range of interest rates                       4.73% - 6.66%     5.10% - 6.62%    4.87% - 5.62%        6.66%
Weighted average interest rate                     5.62%             5.68%            5.16%           6.66%
Percentage of total advances                      53.21%            26.34%           19.00%           1.45%

                                                                One Year to    Five Years to
                                            Less than One      Less than Five  Less than Ten     Greater than
At December 31, 2001:                            Year              Years           Years           Ten Years
                                            --------------    --------------   --------------   -------------

Maturities of advances from FHLB            $   20,935,000    $   52,348,000   $   12,182,824   $   1,283,468
Range of interest rates                       1.83% - 6.59%     4.40% - 6.62%    4.57% - 6.21%        6.66%
Weighted average interest rate                     2.93%             5.36%            5.01%           6.66
Percentage of total advances                      24.13%            60.34%           14.04%           1.49%

</TABLE>


(4)      DIVIDEND

On October 18, 2001, the Board of Directors declared a cash dividend of $0.12
per common share to shareholders of record as of November 15, 2001. This
dividend was paid on November 29, 2001. On January 17, 2002, the Board of
Directors declared a cash dividend of $0.12 per common share to shareholders of
record as of February 7, 2002. The dividend will be paid on February 21, 2002.

                                       6
<PAGE>
<TABLE>
<CAPTION>

(5)      EARNINGS PER SHARE

Earnings per share ("EPS") is computed by dividing net income by the weighted
average number of common shares outstanding in accordance with Statement of
Financial Accounting Standards No. 128, "Earnings Per Share".

The following table reconciles the number of common shares used in the basic and
diluted EPS calculations:

                                      For the Three Months Ended 12/31/00   For the Nine Months Ended 12/31/00
                                      -----------------------------------  -----------------------------------
                                                     Weighted-                            Weighted-
                                                     Average    Per-Share                 Average    Per-Share
                                      Net Income     Shares      Amount    Net Income     Shares      Amount
                                      ----------    ---------   ---------- ----------    ---------   ---------
<S>                                   <C>           <C>         <C>        <C>           <C>         <C>
    Basic EPS:
    Income available to common
      Stockholders                    $  477,609    1,392,605   $   0.34   $1,405,780    1,407,714   $  1.00
                                                                ========                             =======
    Effect of dilutive securities:
      Restricted stock awards                 --       44,850                      --       47,543
                                      ----------   ----------              ----------    ---------
    Diluted EPS:
      Income available to common
        Stockholders - assumed
        Conversions                   $  477,609    1,437,455   $   0.33   $1,405,780    1,455,257   $  0.97
                                      ==========    =========   ========   ==========    =========   =======


                                      For the Three Months Ended 12/31/01   For the Nine Months Ended 12/31/01
                                      -----------------------------------  -----------------------------------
                                                     Weighted-                            Weighted-
                                                     Average    Per-Share                 Average    Per-Share
                                      Net Income     Shares      Amount    Net Income     Shares      Amount
                                      ----------    ---------   ---------- ----------    ---------   ---------
    Basic EPS:
    Income available to common
      Stockholders                    $  628,108    1,329,762   $   0.47   $1,802,800    1,375,366   $  1.31
                                                                ========                             =======
    Effect of dilutive securities:
      Restricted stock awards                 --       52,331                      --       33,008
                                      ----------   ----------              ----------    ---------
    Diluted EPS:
      Income available to common
        Stockholders - assumed
        Conversions                   $  628,108    1,382,093   $   0.45   $1,802,800    1,408,374   $  1.28
                                      ==========    =========   ========   ==========    =========   =======

</TABLE>

As of December 31, 2000 and December 31, 2001, outstanding options to purchase
157,300 and 155,400 shares of the Company's common stock were not included in
the computation of diluted EPS as their effect would have been antidilutive.


(6)      EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS

On July 6, 2001, the United States Securities and Exchange Commission published
Staff Accounting Bulletin No. 102 ("SAB 102"), Selected Loan Loss Allowance
Methodology and Documentation Issues, which provides guidance on the
development, documentation, and application of a systematic methodology for
determining allowances for loan and lease losses in accordance with generally
accepted accounting principles. In particular, the guidance focuses on the
documentation the staff normally would expect registrants to prepare and
maintain in support of their allowances for loan losses. The Company believes
that it has sufficient policies and procedures in place to maintain compliance
with SAB 102.

In September 2000, the Financial Accounting Standards Board issued Financial
Accounting Standards No. 140 ("SFAS 140"), Accounting for Transfers and
Servicing of Financial Assets and Liabilities. SFAS 140 revises certain criteria
promulgated in previous accounting literature (SFAS 125) for accounting for
securitizations and other transfers of financial assets and collateral and
requires additional disclosures concerning these activities. The accounting
requirements of SFAS 140 for securitizations and other transfers of financial
assets are effective for securitizations and transfers occurring on or after
April 1, 2001. The applicable disclosures were required to be adopted for the
Company's year end March 31, 2001, and accordingly, have been incorporated in
these Notes to the Consolidated Financial Statements. The Company adopted SFAS
140 as of the beginning of the fiscal year 2002. The adoption of SFAS 140 did
not have any impact on its consolidated financial statements.

                                       7
<PAGE>

In June 2001, the Financial Accounting Standards Board approved for issuance
Statement of Financial Accounting Standards No. 141 (SFAS 141), Business
Combinations. This standard eliminates the pooling method of accounting for
business combinations initiated after June 30, 2001. In addition, SFAS 141
addresses the accounting for intangible assets and goodwill acquired in a
business combination. This portion of SFAS 141 is effective for business
combinations completed after June 30, 2001. The adoption of SFAS 141 did not
have any effect on the Company's financial position or results of operations.

In June 2001, the Financial Accounting Standards Board approved for issuance
Statement of Financial Accounting Standards No. 142 (SFAS 142), Goodwill and
Intangible Assets, which revises the accounting for purchased goodwill and
intangible assets. Under SFAS 142, goodwill and intangible assets with
indefinite lives will no longer be amortized, but will be tested for impairment
annually and also in the event of an impairment indicator. SFAS 142 is effective
for fiscal years beginning after December 15, 2001, with early adoption
permitted for companies with fiscal years beginning after March 15, 2001 if
their first quarter financial statements have not previously been issued. The
adoption of SFAS 142 did not have any effect on the Company's financial position
or results of operations.

                                       8
<PAGE>
Item 2
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-looking statements, within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, are made throughout this Management's
Discussion and Analysis of Financial Condition and Results of Operations. For
this purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. Without limiting
the foregoing, the words "believes," "anticipates," "plans," "expects,"
"estimates" and similar expressions are intended to identify forward-looking
statements. There are a number of important factors that could cause the results
of the Company to differ materially from those indicated herein. These factors
include, but are not limited to, those set forth in Item 6 entitled Management's
Discussion and Analysis of Financial Condition and Results of Operations in the
Company's Form 10-KSB for the year ended March 31, 2001.

GENERAL

On July 1, 1997, FirstBank Northwest converted from mutual to stock form and
became a wholly owned subsidiary of a newly formed Delaware holding company,
FirstBank Corp. The Company sold 1,983,750 shares of common stock at $10.00 per
share in conjunction with a subscription offering to the Savings Bank's Employee
Stock Ownership Plan (ESOP) and eligible account holders. The net proceeds were
approximately $18,921,825. The Company used approximately $9,470,000 of the net
proceeds to purchase all the capital stock of the Savings Bank. In addition,
$1,587,000 was loaned to the ESOP for the purchase of 158,700 shares in the
offering.

The Company's principal business is the business of the Savings Bank. Management
believes that the Company operates under a single business segment. Therefore,
the discussion in the Management's Discussion and Analysis of Financial
Conditions and Results of Operation relates to the Savings Bank and its
operations. In January 1998, the Bank changed its charter to a Washington state
savings bank. At December 31, 2001 the Bank had six offices in Idaho and two in
Washington.

FINANCIAL CONDITION AT DECEMBER 31, 2001 AND MARCH 31, 2001

Assets increased from $281.1 million at March 31, 2001 to $297.1 million at
December 31, 2001. Cash and cash equivalents increased from $12.8 million at
March 31, 2001 to $18.8 million at December 31, 2001 as a result of an increase
in non-interest bearing deposits of $7.1 million and decreases in interest
bearing deposits and federal funds sold. Available-for-sale mortgage-backed
securities decreased $7.7 million, of which $5.3 million was due to the sale of
investments. These proceeds were used to purchase bank owned and other insurance
policies with cash surrender values. Net loans receivable increased from $219.2
million at March 31, 2001 to $231.9 million at December 31, 2001. This change in
net loans receivable resulted from an increase in commercial loans of $16.3
million, agricultural loans of $1.9 million, and construction loans of $1.2
million, and a decrease in residential loans of $4.9 million, home equity loans
of $1.7 million, and consumer loans of $0.1 million. Accrued interest receivable
decreased from $2.3 million at March 31, 2001 to $2.2 million at December 31,
2001. Cash surrender value of bank owned and other insurance policies increased
from $1.7 million at March 31, 2001 to $6.8 million at December 31, 2001. This
increase is the result of improving investment yield by purchasing bank owned
and other insurance policies with cash surrender values with the proceeds from
the sale of the available-for-sale mortgage-backed securities. Deposits
increased from $157.8 million at March 31, 2001 to $178.8 million at December
31, 2001 as a result of increases in brokered CD's of $12.1 million, money
market accounts of $6.1 million, interest checking accounts of $4.8 million, and
savings deposits of $0.5 million, and decreases in CD's of $0.7 million and
non-interest checking accounts of $1.8 million. Federal Home Loan Bank of
Seattle (FHLB) advances and other borrowings decreased from $90.9 million at
March 31, 2001 to $86.7 million at December 31, 2001. Accrued expenses and other
liabilities increased from $2.2 million at March 31, 2001 to $2.7 million at
December 31, 2001. It is the policy of the Bank to cease accruing interest on
loans that are delinquent 90 days or more. Non accrual loans increased from $1.2
million at March 31, 2001 to $1.4 million at December 31, 2001. The economic
conditions of FirstBank Corporation's operating environment may cause future
additions to non-accrual loans.

                                       9
<PAGE>

RESULTS OF OPERATIONS FOR THREE MONTHS ENDED DECEMBER 31, 2000 AND 2001

Net income increased from $477,609 for the three months ended December 31, 2000
to $628,108 for the three months ended December 31, 2001.

Net interest income increased from $2.3 million for the three months ended
December 31, 2000 to $2.6 million for the three months ended December 31, 2001.
Total interest income decreased from $5.3 million for the three months ended
December 31, 2000 to $4.9 million for the three months ended December 31, 2001.
The yield on interest earning assets decreased from 8.63% for the three months
ended December 31, 2000 to 7.62% for the three months ended December 31, 2001,
which offsets the return on the $16.7 million increase in average interest
earning assets. The average balance of loans receivable was $206.2 million in
the third quarter of 2000 compared to $221.0 million in the third quarter of
2001. Interest income from investment securities decreased from $153,000 for the
three months ended December 31, 2000 to $149,000 for the three months ended
December 31, 2001. The decrease is due to an overall lower yield on investment
securities. Interest income from mortgage-backed securities decreased from
$361,000 for the three months ended December 31, 2000 to $202,000 for the three
months ended December 31, 2001. The decrease is due to the combination of an
overall lower yield on mortgage-backed securities and the sale of securities
between the three month periods ended December 31, 2000 and 2001. Interest
expense decreased from $3.0 million for the three months ended December 31, 2000
to $2.3 million for the same period in 2001. The decrease in interest expense is
due to a decrease in average FHLB advances with a decrease in weighted average
rates on those advances and a higher average balance on deposits with a lower
weighted average rate. The average FHLB advances balance for the three months
ended December 31, 2000 was $87.5 million, whereas the average FHLB advances
balance as of December 31, 2001 was $73.2 million. The weighted average rate on
FHLB advances for the three months ended December 31, 2000 was 6.51%, whereas
the weighted average rate on FHLB advances as of December 31, 2001 was 5.25%.
The average deposit balance for the three months ended December 31, 2000 was
$150.3 million, whereas the average deposit balance as of December 31, 2001 was
$179.5 million. The weighted average rate on deposits for the three months ended
December 31, 2000 was 4.19%, whereas the weighted average rate on deposits as of
December 31, 2001 was 3.04%.

Provision for loan losses are based upon management's ongoing review and
evaluation of the loan portfolio and consideration of economic conditions, which
may affect the ability of borrowers to repay their loans, on a monthly basis and
by the Board on a regular basis. The following loan loss grading system assists
management in determining the overall risk in the loan portfolio. Individual
loans are reviewed constantly for classification into six categories:
satisfactory, acceptable, special mention, substandard, doubtful, and loss which
are assigned a standard loan loss percent. The change in loan types per category
is multiplied by the assigned loan loss percent to arrive at the basic monthly
adjustment to the provision for loan loss expense. The second element of the
provision for loan losses is based on management's review and evaluation of the
allowance for loan losses based on an analysis of historical trends, individual
loans for which full collectibility may not be reasonably assured, estimated
fair value of the underlying collateral, industry comparisons, unemployment rate
in the Company's market, and inherent risks in the Bank's portfolio. As a result
of this evaluation, the Company's provision for loan losses increased from
$76,000 for the three months ended December 31, 2000 to $281,000 for the three
months ended December 31, 2001. Due to unfavorable current economic conditions
in the Company's market and industry, management believed it was necessary to
increase the commercial and agricultural allowance for loan loss.

Non-interest income increased from $625,000 for the three months ended December
31, 2000 to $1,094,000 for the three months ended December 31, 2001. The primary
reason for the increase in non-interest income is from the gain on sale of loans
and also due to increased income generated from automated teller machine and
merchant bank card service fees.

Non-interest expense increased from $2.2 million for the three months ended
December 31, 2000 to $2.5 million for the three months ended December 31, 2001.
The increase in compensation and employee related benefits expense of $216,000
is a result of additional staff and additional compensation and employee related
benefits. The increase in other non-interest expense of $102,000 is a result of
automated teller machine, merchant bank card, insurance, and checking account
expenses.

Income taxes increased from an expense of $202,000 for the three months ended
December 31, 2000 to $327,000 for the same time period in 2001, due to the
increase in income before income tax expense.

                                       10
<PAGE>
RESULTS OF OPERATIONS FOR NINE MONTHS ENDED DECEMBER 31, 2000 AND 2001

Net income increased from $1,405,780 for the nine months ended December 31, 2000
to $1,802,800 for the nine months ended December 31, 2001.

Net interest income increased from $6.7 million for the nine months ended
December 31, 2000 to $7.7 million for the nine months ended December 31, 2001.
Total interest income remained at $15.4 million for the nine months ended
December 31, 2000 and 2001. Interest income from loans receivable increased from
$13.3 million for the nine months ended December 31, 2000 to $13.7 million for
the nine months ended December 31, 2001. The increase resulted from an increase
in average commercial loans receivable balance from $ 62.8 million at December
31, 2000 to $81.9 million at December 31, 2001. The weighted average yield on
commercial loans decreased from 9.50% at December 31, 2000 to 8.15% at December
31, 2001. Interest income from mortgage-backed securities decreased from
$1,100,000 for the nine months ended December 31, 2000 to $728,000 for the nine
months ended December 31, 2001. The decrease in mortgage-backed securities is
due to the combination of an overall lower yield on mortgage-backed securities
and the sale of securities in the first quarter of fiscal year 2002. Interest
income from investment securities decreased from $461,000 for the nine months
ended December 31, 2000 to $452,000 for the nine months ended December 31, 2001.
Interest expense decreased from $8.6 million for the nine months ended December
31, 2000 to $7.8 million for the same period in 2001. The decrease in interest
expense is due to a decrease in average FHLB advances with a decrease in
weighted average rates on those advances and a higher average balance on
deposits with a lower weighted average rate. The average FHLB advances balance
for the nine months ended December 31, 2000 was $87.6 million, whereas the
average FHLB advances balance as of December 31, 2001 was $84.1 million. The
weighted average rate on FHLB advances for the three months ended December 31,
2000 was 6.44%, whereas the weighted average rate on FHLB advances as of
December 31, 2001 was 5.30%. The average deposit balance for the nine months
ended December 31, 2000 was $146.1 million, whereas the average deposit balance
as of December 31, 2001 was $168.0 million. The weighted average rate on
deposits for the nine months ended December 31, 2000 was 4.00%, whereas the
weighted average rate on deposits as of December 31, 2001 was 3.52%.

Provision for loan losses are based upon management's ongoing review and
evaluation of the loan portfolio and consideration of economic conditions, which
may affect the ability of borrowers to repay their loans, on a monthly basis and
by the Board on a regular basis. The following loan loss grading system assists
management in determining the overall risk in the loan portfolio. Individual
loans are reviewed constantly for classification into six categories:
satisfactory, acceptable, special mention, substandard, doubtful, and loss which
are assigned a standard loan loss percent. The change in loan types per category
is multiplied by the assigned loan loss percent to arrive at the basic monthly
adjustment to the provision for loan loss expense. The second element of the
provision for loan losses is based on management's review and evaluation of the
allowance for loan losses based on an analysis of historical trends, individual
loans for which full collectibility may not be reasonably assured, estimated
fair value of the underlying collateral, industry comparisons, unemployment rate
in the Company's market, and inherent risks in the Bank's portfolio. As a result
of this evaluation, the Company's provision for loan losses increased from
$209,000 for the nine months ended December 31, 2000 to $695,000 for the nine
months ended December 31, 2001. Due to unfavorable current economic conditions
in the Company's market and industry, management believed it was necessary to
increase the commercial and agricultural allowance for loan loss.

Non-interest income increased from $1.9 million for the nine months ended
December 31, 2000 to $3.1 million for the nine months ended December 31, 2001.
The increase in non-interest income is primarily due to the gain on sale of
loans and also due to increased income from gain on sale of securities,
automated teller machine, visa check card, and merchant bank card service fees.

Non-interest expense increased from $6.4 million for the nine months ended
December 31, 2000 to $7.3 million for the nine months ended December 31, 2001.
The increase in compensation and employee related benefits expense of $688,000
is a result of additional staff and additional compensation and employee related
benefits. The increase in other non-interest expense of $257,000 is mostly the
result of increased expenses related to automated teller machine, visa check
card, merchant bank card, insurance, and marketing.

Income taxes increased from an expense of $623,000 for the nine months ended
December 31, 2000 to $914,000 for the same time period in 2001, due to the
increase in income before income tax expense.

                                       11
<PAGE>
<TABLE>
<CAPTION>
Average Balances, Interest and Average Yields/Costs

The following table sets forth certain information for the periods indicated
regarding average balances of assets and liabilities as well as the total dollar
amounts of interest income from average interest-earning assets and interest
expense on average interest-bearing liabilities and average tax effected yields
and costs. Such yields and costs for the years indicated are derived by dividing
tax effected income or expense by the average daily balance of assets or
liabilities, respectively, for the periods presented.

                                                     Year Ending                        Nine Months Ending
                                                    March 31, 2001                      December 31, 2001
                                        --------------------------------------  ------------------------------------
                                                      Interest       Average                Interest       Average
                                         Average         and          Yield/     Average       and          Yield/
                                         Balance      Dividends       Cost       Balance    Dividends       Cost
                                        ---------     ---------       -----     ---------   ---------       ----
                                                                     (Dollars in Thousands)
<S>                                     <C>           <C>              <C>      <C>         <C>             <C>
    Interest-earning assets (1):
    Loans receivable:
    Mortgage loans receivable           $  72,629     $   5,700        7.85%    $  73,438   $   4,220       7.66%
    Commercial loans receivable            66,492         6,106        9.35        81,886       4,957       8.15
    Construction loans receivable           5,485           581       10.59         6,489         506      10.40
    Consumer loans receivable              34,677         3,097        8.93        35,152       2,248       8.53
    Agricultural loans receivable          27,258         2,542        9.33        27,918       1,748       8.35
    Unearned loan fees and
       discounts and allowance
       for loan losses                     (2,095)           --          --        (2,529)         --         --
                                        ---------     ---------       -----     ---------   ---------       ----
    Loans receivable, net                 204,446        18,026        8.87       222,354      13,679       8.23
    Mortgage-backed securities             20,279         1,439        7.10        14,716         728       6.60
    Investment securities                  11,901           614        7.19        12,479         452       6.73
    Other earning assets                   11,479           678        5.91        15,935         587       5.38
                                        ---------     ---------                 ---------   ---------
    Total interest-earning assets         248,105        20,757        8.51       265,484      15,446       7.90
                                                      ---------                             ---------
    Non-interest-earning assets            17,802                                  19,078
                                        ---------                               ---------
    Total assets                        $ 265,907                               $ 284,562
                                        =========                               =========

    Interest-earning liabilities:
    Passbook, NOW and money
       market accounts                  $  63,486     $   1,186        1.87     $  71,946   $     782       1.45
    Certificates of deposit                83,670         4,823        5.76        96,006       3,658       5.08
                                        ---------     ---------                 ---------   ---------
    Total deposits                        147,156         6,009        4.08       167,952       4,440       3.52

    Advances from FHLB & other             88,747         5,608        6.32        84,145       3,347       5.30
                                        ---------     ---------                 ---------   ---------
    Total interest-bearing
        liabilities                       235,903        11,617        4.92       252,097       7,787       4.12
                                                      ---------                             ---------
    Non-interest-bearing
        liabilities                         3,408                                   4,444
                                        ---------                               ---------
    Total liabilities                     239,311                                 256,541
    Total stockholders' equity             26,596                                  28,021
                                        ---------                               ---------
    Total liabilities and
       total stockholders' equity       $ 265,907                               $ 284,562
                                        =========                               =========

    Net interest income                               $   9,140                             $   7,659
                                                      =========                             =========

    Interest rate spread                                               3.59%                                3.78%
                                                                      =====                                =====

    Net interest margin                                    3.83%                                 3.99%
                                                      =========                             =========

    Ratio of average interest-
       earning assets to average
       interest- bearing liabilities                     105.17%                               105.31%
                                                      =========                             =========

(1) Does not include interest on loans 90 days or more past due.
</TABLE>

                                       12
<PAGE>
<TABLE>
<CAPTION>
Liquidity and Capital Resources

The Company's primary recurring sources of funds are customer deposits, proceeds
from principal and interest payments on loans, proceeds from sales of loans,
maturing securities, FHLB advances, and borrowings from the Portland Branch
Office of the Federal Reserve Bank of San Francisco. While maturities and
scheduled amortization of loans are a predictable source of funds, deposit flows
and mortgage prepayments are greatly influenced by general interest rates,
economic conditions and competition.

The Company must maintain an adequate level of liquidity to ensure the
availability of sufficient funds to support loan growth and deposit withdrawals,
to satisfy financial commitments and to take advantage of investment
opportunities. Liquidity is being able to raise funds in a short period of time
without incurring a principle loss. The Company generally maintains sufficient
cash and short-term investments to meet short-term liquidity needs. At December
31, 2001, cash and cash equivalents totaled $18.8 million, or 6.33% of total
assets. In addition, the Company maintains a credit facility with the FHLB of
Seattle, which provides for immediately available advances. Advances under this
credit facility totaled $86.7 million at December 31, 2001. The Company also
maintains additional credit facilities with Wells Fargo Bank, and the Federal
Reserve Bank of San Francisco. The Company did not have any amounts outstanding
under these facilities as of December 31, 2001. The Bank also has used other
sources of funding when the need arises; brokered CD's (up to 15% of assets
under current Board policy) and the National CD's markets.

The primary investing activity of the Company is the origination of loans.
During the nine month period ended December 31, 2001, the Company originated
loans based upon new production in the amounts of $179.2 million. At December
31, 2001, the Company had loan commitments totaling $25.7 million, undisbursed
lines of credit totaling $30.8 million, and undisbursed loans in process
totaling $2.9 million. The Company anticipates that it will have sufficient
funds available to meet its current loan origination commitments. Certificates
of deposit that are scheduled to mature in less than one year from December 31,
2001 totaled $69.3 million. Historically, the Company has been able to retain a
significant amount of its deposits as they mature. In addition, management of
the Company believes that it can adjust the offering rates of savings
certificates to retain deposits in changing interest rate environments.

The Bank is required to maintain specific amounts of capital pursuant to the
FDIC and the State of Washington requirements. As of December 31, 2001, the Bank
was in compliance with all regulatory capital requirements which were effective
as of such date with Tier 1 Capital to average assets, Tier 1 Capital to
risk-weighted assets and Total Capital to risk-weighted assets of 9.13%, 12.77%
and 13.93%, respectively.

Interest Rate Risk

Interest rate risk represents the sensitivity of earnings to changes in market
interest rates. As interest rates change, the interest income and expense
streams associated with the Company's financial instruments also change thereby
impacting net interest income ("NII"), the primary component of the Company's
earnings. ALCO utilizes the results of a detailed and dynamic simulation model
to quantify the estimated exposure of NII to sustained interest rate changes.
While ALCO routinely monitors simulated NII sensitivity over a rolling two-year
horizon, it also utilizes additional tools to monitor potential longer-term
interest rate risk.

The simulation model captures the impact of changing interest rates on the
interest income received and interest expense paid on all assets and liabilities
reflected on the Company's balance sheet as well as for off balance sheet
derivative financial instruments, if any. This sensitivity analysis is compared
to ALCO policy limits which specify a maximum tolerance level for NII exposure
over a one year horizon, assuming no balance sheet growth, given both a 200
basis point (bp) upward and downward shift in interest rates. A parallel and pro
rata shift in rates over a 12 month period is assumed. The following reflects
the Company's NII sensitivity analysis as of December 31, 2001, March 31, 2001
and December 31, 2000 as compared to the 10.00% Board approved policy limit.

    December 31, 2001:                       -200 BP           Flat           +200 BP
                                            --------         --------         --------
                                                      (Dollars in Thousands)
<S>                                         <C>              <C>              <C>
    Year 1 NII                              $ 11,153         $ 11,314         $ 11,344
    NII $ Change                           ($    161)              --         $     30
    NII % Change                              -1.42%               --           0.27%


    March 31, 2001:                          -200 BP           Flat           +200 BP
                                            --------         --------         --------
                                                      (Dollars in Thousands)
    Year 1 NII                              $ 10,183         $ 10,278         $ 10,279
    NII $ Change                            ($    95)              --         $      1
    NII % Change                              -0.92%               --           0.01%
</TABLE>

                                       13
<PAGE>
<TABLE>
<CAPTION>
    December 31, 2000:                       -200 BP           Flat          +200 BP
                                            --------         --------         --------
                                                      (Dollars in Thousands)
<S>                                         <C>              <C>              <C>
    Year 1 NII                              $ 10,219         $  9,864         $  9,366
    NII $ Change                            $    355               --        ($    498)
    NII % Change                               3.60%               --          -5.05%
</TABLE>

The preceding sensitivity analysis does not represent a Company forecast and
should not be relied upon as being indicative of expected future operating
results. These hypothetical estimates are based upon numerous assumptions
including: the nature and timing of interest rate levels including yield curve
shape, prepayments on loans and securities, deposit decay rates, pricing
decisions on loans and deposits, reinvestment/replacement of asset and liability
cash flows, and others. While assumptions are developed based upon current
economic and local market conditions, the Company cannot make any assurances as
to the predictive nature of these assumptions including how customer preferences
or competitor influences might change.

Also, as market conditions vary from those assumed in the sensitivity analysis,
actual results will also differ due to: prepayment/refinancing levels likely
deviating from those assumed, the varying impact of interest rate change caps or
floors on adjustable rate assets, the potential effect of changing debt service
levels on customers with adjustable rate loans, depositor early withdrawals and
product preference changes, and other internal/external variables. Furthermore,
the sensitivity analysis does not reflect actions that ALCO might take in
responding to or anticipating changes in interest rates.

Effect of Recently Issued Accounting Standards

On July 6, 2001, the United States Securities and Exchange Commission published
Staff Accounting Bulletin No. 102 ("SAB 102"), Selected Loan Loss Allowance
Methodology and Documentation Issues, which provides guidance on the
development, documentation, and application of a systematic methodology for
determining allowances for loan and lease losses in accordance with generally
accepted accounting principles. In particular, the guidance focuses on the
documentation the staff normally would expect registrants to prepare and
maintain in support of their allowances for loan losses. The Company believes
that it has sufficient policies and procedures in place to maintain compliance
with SAB 102.

In September 2000, the Financial Accounting Standards Board issued Financial
Accounting Standards No. 140 ("SFAS 140"), Accounting for Transfers and
Servicing of Financial Assets and Liabilities. SFAS 140 revises certain criteria
promulgated in previous accounting literature (SFAS 125) for accounting for
securitizations and other transfers of financial assets and collateral and
requires additional disclosures concerning these activities. The accounting
requirements of SFAS 140 for securitizations and other transfers of financial
assets are effective for securitizations and transfers occurring on or after
April 1, 2001. The applicable disclosures were required to be adopted for the
Company's year end March 31, 2001, and accordingly, have been incorporated in
these Notes to the Consolidated Financial Statements. The Company adopted SFAS
140 as of the beginning of the fiscal year 2002. The adoption of SFAS 140 did
not have any impact on its consolidated financial statements.

In June 2001, the Financial Accounting Standards Board approved for issuance
Statement of Financial Accounting Standards No. 141 (SFAS 141), Business
Combinations. This standard eliminates the pooling method of accounting for
business combinations initiated after June 30, 2001. In addition, SFAS 141
addresses the accounting for intangible assets and goodwill acquired in a
business combination. This portion of SFAS 141 is effective for business
combinations completed after June 30, 2001. The adoption of SFAS 141 did not
have any effect on the Company's financial position or results of operations.

In June 2001, the Financial Accounting Standards Board approved for issuance
Statement of Financial Accounting Standards No. 142 (SFAS 142), Goodwill and
Intangible Assets, which revises the accounting for purchased goodwill and
intangible assets. Under SFAS 142, goodwill and intangible assets with
indefinite lives will no longer be amortized, but will be tested for impairment
annually and also in the event of an impairment indicator. SFAS 142 is effective
for fiscal years beginning after December 15, 2001, with early adoption
permitted for companies with fiscal years beginning after March 15, 2001 if
their first quarter financial statements have not previously been issued. The
adoption of SFAS 142 did not have any effect on the Company's financial position
or results of operations.

                                       14
<PAGE>

                       FIRSTBANK NW CORP. AND SUBSIDIARIES


PART II- OTHER INFORMATION

Item 1 - Legal Proceedings

         There are no material legal proceedings to which the Company or the
         Bank is a party or of which any of their property is subject. From time
         to time, the Bank is a party to various legal proceedings incident to
         its business.

Item 2 - Changes in Securities

         None.

Item 3 - Defaults upon Senior Securities

         Not applicable.

Item 4 - Submission of Matters to a Vote of Security Holders

         None.

Item 5 - Other Information

         None.

Item 6 - Exhibits and Reports on Form 8-K

         (a)   Exhibits:

                      3.1    Articles of Incorporation of the Registrant (1)
                      3.2    Bylaws of the Registrant (1)
                      10.1   Employment Agreement between FirstBank Northwest,
                             FirstBank Corp. and Clyde E. Conklin (2)
                      10.2   Employment Agreement between FirstBank Northwest,
                             FirstBank Corp. and Larry K. Moxley (3)
                      10.3   Salary Continuation Agreement between First Federal
                             Bank of Idaho, F.S.B. and Clyde E. Conklin (3)
                      10.4   Salary Continuation Agreement between First Federal
                             Bank of Idaho, F.S.B. and Larry K. Moxley (3)

               (1)    Incorporated by reference to the Registrant's Amended
                      Annual Report on Form 10-KSB/A for the year ended March
                      31, 2000.
               (2)    Incorporated by reference to the Registrant's Annual
                      Report on Form 10-KSB for the year ended March 31, 2000.
               (3)    Incorporated by reference to the Registrant's Registration
                      Statement on Form SB-2, (File No. 333-23395).

         (b)   Reports on Form 8-K; No reports on Form 8-K have been filed
               during the quarter for which this report is filed.

                                       15
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                            FIRSTBANK NW CORP.


DATED:  February 12, 2002                   BY: /s/ CLYDE E. CONKLIN
                                                --------------------------------
                                                Clyde E. Conklin
                                                President and Chief Executive
                                                Officer

                                            BY: /s/ LARRY K. MOXLEY
                                                --------------------------------
                                                Larry K. Moxley
                                                Secretary and Chief Financial
                                                Officer

                                       16