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 September 30, 2002


       ( ) 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 1,290,852 shares
outstanding on November 14, 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.  Financial Statements
         Consolidated Statements of Financial Condition
            September 30, 2001, March 31, 2002, and
            September 30, 2002                                              1
         Consolidated Statements of Income
            For the three months and six months ended
            September 30, 2001 and 2002                                     2
         Consolidated Statements of Cash Flows
            For the six months ended September 30, 2001 and 2002            3
         Consolidated Statements of Comprehensive Income
            For the three months and six months ended
            September 30, 2001 and 2002                                     4
         Notes to Consolidated Financial Statements                       5 - 8

Item 2.  Management's Discussion and Analysis or Plan
         of Operation                                                     9 - 15

Item 3.  Controls and Procedures                                           16



PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                                 17
Item 2.  Changes in Securities and Use of Proceeds                         17
Item 3.  Defaults Upon Senior Securities                                   17
Item 4.  Submission of Matters to a Vote of Security Holders               17
Item 5.  Other Information                                                 17
Item 6.  Exhibits and Reports on Form 8-K                                  17
<PAGE>

PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements

                       FirstBank NW Corp. and Subsidiaries
                 Consolidated Statements of Financial Condition

<TABLE>
<CAPTION>
                                                                  September 30,       March 31,     September 30,
                                                                       2001             2002             2002
                                                                  -------------    -------------    -------------
                                                                   (Unaudited)                       (Unaudited)
<S>                                                               <C>              <C>              <C>
ASSETS Cash and cash equivalents:
  Non-interest bearing deposits                                   $  10,149,799    $  10,841,708    $  14,519,897
  Interest bearing deposits                                           1,322,795        3,318,476        1,615,634
  Federal funds sold                                                 15,789,469        9,851,718       12,123,323
                                                                  -------------    -------------    -------------
Total cash and cash equivalents                                      27,262,063       24,011,902       28,258,854

Investment securities:
  Available-for-sale                                                 12,595,452       12,523,641       14,056,990
Mortgage-backed securities:
  Held-to-maturity                                                    2,236,579        2,140,478        2,053,624
  Available-for-sale                                                 11,354,809        9,292,604        8,919,044
Loans receivable, net (Note 2)                                      215,820,487      238,136,158      249,921,381
Accrued interest receivable                                           2,681,148        1,913,222        2,447,382
Real estate owned                                                        71,930          423,925          130,554
Stock in FHLB, at cost                                                5,209,775        5,379,875        5,542,775
Premises and equipment, net                                           5,724,365        5,506,770        5,476,465
Income taxes receivable                                                  68,884           42,963               --
Cash surrender value of bank owned and other insurance policies       6,548,888        6,849,783        7,083,570
Mortgage servicing assets                                               946,859        1,016,953        1,017,295
Other assets                                                            661,093          602,170          907,643
                                                                  -------------    -------------    -------------
TOTAL ASSETS                                                      $ 291,182,332    $ 307,840,444    $ 325,815,577
                                                                  =============    =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Deposits                                                        $ 180,794,003    $ 196,122,514    $ 210,704,989
  Advances from borrowers for taxes and insurance                     1,406,521        1,395,685        1,284,325
  Advances from FHLB (Note 3)                                        78,551,468       79,722,443       80,224,335
  Income taxes payable                                                       --               --           51,316
  Deferred federal and state income taxes                               589,827          185,000          595,257
  Accrued expenses and other liabilities                              2,070,442        2,602,118        3,586,787
                                                                  -------------    -------------    -------------
Total Liabilities                                                   263,412,261      280,027,760      296,447,009
                                                                  -------------    -------------    -------------

  Commitments and contingencies (Note 6)
  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;
      1,471,192, 1,436,392, and 1,403,592 shares issued;
      1,327,844, 1,310,624 and 1,296,950 shares outstanding              14,749           14,400           14,073
  Additional paid-in-capital                                         11,442,443       10,842,691       10,255,184
  Retained earnings, substantially restricted                        17,267,772       18,144,686       19,103,745
  Unearned ESOP shares                                               (1,011,350)        (969,580)        (927,770)
  Deferred compensation                                                (511,200)        (393,020)        (274,840)
  Accumulated other comprehensive income                                567,657          173,507        1,198,176
                                                                  -------------    -------------    -------------
Total Stockholders' Equity                                           27,770,071       27,812,684       29,368,568
                                                                  -------------    -------------    -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $ 291,182,332    $ 307,840,444    $ 325,815,577
                                                                  =============    =============    =============
</TABLE>

           See accompanying notes to consolidated financial statements

                                                                               1
<PAGE>

                       FirstBank NW Corp. and Subsidiaries
                        Consolidated Statements of Income

<TABLE>
<CAPTION>
                                                          Three-months ended September 30,       Six-months ended September 30,
                                                              2001               2002               2001               2002
                                                          ------------       ------------       ------------       ------------
                                                                                       (Unaudited)
<S>                                                       <C>                <C>                <C>                <C>
Interest income:
  Loans receivable                                        $  4,634,589       $  4,572,369       $  9,304,676       $  9,065,135
  Mortgage-backed securities                                   232,969            186,372            526,060            371,237
  Investment securities                                        150,009            160,889            302,561            317,695
  Other interest earning assets                                204,536            233,843            365,844            474,230
                                                          ------------       ------------       ------------       ------------
Total interest income                                        5,222,103          5,153,473         10,499,141         10,228,297
                                                          ------------       ------------       ------------       ------------

Interest expense:
  Deposits                                                   1,534,006          1,224,820          3,075,364          2,444,598
  Advances from FHLB and other borrowings                    1,139,111          1,025,209          2,386,985          2,032,567
                                                          ------------       ------------       ------------       ------------
Total interest expense                                       2,673,117          2,250,029          5,462,349          4,477,165
                                                          ------------       ------------       ------------       ------------

Net interest income                                          2,548,986          2,903,444          5,036,792          5,751,132
Provision for loan losses                                      184,585            228,429            413,555            437,835
                                                          ------------       ------------       ------------       ------------
Net interest income after provision for loan losses          2,364,401          2,675,015          4,623,237          5,313,297
                                                          ------------       ------------       ------------       ------------

Non-interest income:
  Gain on sale of loans                                        482,032            504,805            835,104            923,700
  Gain on sale of securities, net                                   --                 --            175,249                 --
  Service fees and other charges                               485,082            543,352            925,238          1,050,437
  Commissions and other                                         24,141             34,960             65,083             83,943
                                                          ------------       ------------       ------------       ------------
Total non-interest income                                      991,255          1,083,117          2,000,674          2,058,080
                                                          ------------       ------------       ------------       ------------

Non-interest expense:
  Compensation and employee related benefits                 1,462,598          1,776,717          2,907,160          3,465,365
  Occupancy                                                    309,625            298,418            617,241            625,487
  Other                                                        710,922            786,051          1,338,211          1,543,499
                                                          ------------       ------------       ------------       ------------
Total non-interest expense                                   2,483,145          2,861,186          4,862,612          5,634,351
                                                          ------------       ------------       ------------       ------------

Income before income tax expense                               872,511            896,946          1,761,299          1,737,026
Income tax expense                                             279,199            251,583            586,608            460,708
                                                          ------------       ------------       ------------       ------------
Net income                                                $    593,312       $    645,363       $  1,174,691       $  1,276,318
                                                          ============       ============       ============       ============

Earnings per share (Note 5):
  Net income per share - basic                            $       0.44       $       0.50       $       0.86       $       0.98
  Net income per share - diluted                          $       0.43       $       0.48       $       0.82       $       0.95
  Cash dividends paid per common share                    $       0.10       $       0.12       $       0.20       $       0.24
  Weighted average shares outstanding - basic                1,356,792          1,290,589          1,372,325          1,296,270
  Weighted average shares outstanding - diluted              1,397,308          1,333,078          1,427,458          1,345,830
</TABLE>

           See accompanying notes to consolidated financial statements

                                                                               2
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                     Six-months ended September 30,
                                                                                        2001                2002
                                                                                    -------------      -------------
                                                                                               (Unaudited)
<S>                                                                                 <C>                <C>
Cash flows from operating activities:
  Net income                                                                        $   1,174,691      $   1,276,318
  Adjustments to reconcile net income to net cash used in operating activities:
    Depreciation                                                                          335,708            314,416
    Amortization and accretion of securities, net                                           9,570             (8,178)
    Provision for loan losses                                                             413,555            437,835
    Gain on sale of loans                                                                (835,104)          (923,700)
    Gain on sale of securities, net                                                      (175,249)                --
    FHLB stock dividends                                                                 (177,900)          (162,900)
    ESOP compensation expense                                                              60,763             76,993
    Other (gains) losses, net                                                             (14,996)           (20,975)
    Deferred compensation expense                                                         118,181            118,180
    Deferred income taxes                                                                (161,553)          (252,369)
  Changes in assets and liabilities:
    Accrued interest receivable and other assets                                         (701,373)          (583,389)
    Advances (repayments) from borrowers for taxes and insurance                            5,891           (111,360)
    Accrued expenses and other liabilities                                               (128,059)           984,440
    Income taxes receivable                                                                55,628             94,279
                                                                                    -------------      -------------
Net cash provided by (used in) operating activities                                       (20,247)         1,239,590
                                                                                    -------------      -------------

Cash flows from investing activities:
  Proceeds from maturities of mortgage-backed securities; held-to-maturity                 95,318             83,826
  Proceeds from maturities of mortgage-backed securities; available-for-sale            1,165,425            785,084
  Proceeds from sale of mortgage-backed securities; available-for-sale                  5,271,715                 --
  Purchase of investment securities; available-for-sale                                        --           (504,074)
  Decrease in loans receivable from loans sold                                         48,880,076         63,860,133
  Other net change in loans receivable                                                (45,341,327)       (75,159,491)
  Purchases of premises and equipment                                                     (71,086)          (284,111)
  Purchase of bank owned and other insurance policies                                  (4,749,442)                --
  Net increase in cash surrender value of life insurance policies                         (54,989)          (233,787)
  Proceeds from sale of real estate owned                                                 177,681            315,691
                                                                                    -------------      -------------
Net cash provided by (used in) investing activities                                     5,373,371        (11,136,729)
                                                                                    -------------      -------------

Cash flows from financing activities:
  Cash paid for dividends                                                                (283,751)          (317,259)
  Net increase (decrease) in deposits                                                  22,996,879         14,582,475
  Advances from FHLB and other borrowings                                             129,874,106         41,046,406
  Payments on advances from FHLB and other borrowings                                (142,239,661)       (40,544,514)
  Proceeds from stock options                                                                  --             44,268
  Purchase of stock                                                                    (1,243,482)          (667,285)
                                                                                    -------------      -------------
Net cash provided by financing activities                                               9,104,091         14,144,091
                                                                                    -------------      -------------

Net increase in cash and cash equivalents                                              14,457,215          4,246,952

Cash and cash equivalents, beginning of period                                         12,804,848         24,011,902
                                                                                    -------------      -------------
Cash and cash equivalents, end of period                                            $  27,262,063      $  28,258,854
                                                                                    =============      =============

Supplemental disclosures of cash flow information: Cash paid during the
  period for:
     Interest                                                                       $   5,353,915      $   4,765,016
     Income taxes                                                                   $     692,533      $     616,966
  Noncash investing and financing activities:
     Unrealized gains (losses) on securities; available-for-sale, net of tax        $      32,675      $     868,049
     Unrealized gain on cash flow hedge derivative, net of tax                      $          --      $     156,621
     Loans receivable charged to the allowance for loan losses                      $      86,286      $     121,615
     Transfer from loans converted to real estate acquired through foreclosure      $     213,139      $          --
</TABLE>

           See accompanying notes to consolidated financial statements

                                                                               3
<PAGE>

                       FirstBank NW Corp. and Subsidiaries
                 Consolidated Statements of Comprehensive Income

<TABLE>
<CAPTION>
                                                               Three-months ended September 30,   Six-months ended September 30,
                                                                    2001             2002             2001              2002
                                                                ------------     ------------     ------------      ------------
                                                                                          (Unaudited)
<S>                                                             <C>              <C>              <C>               <C>
Net income                                                      $    593,312     $    645,363     $  1,174,691      $  1,276,318
                                                                ------------     ------------     ------------      ------------
Other comprehensive income (loss), net of tax:
      Change in unrealized gains (losses) on securities;
        available-for-sale, net of tax benefit (expense)
        of ($155,412),  ($236,376), $68,548, and ($561,544)          240,462          365,395          (32,675)          868,048
     Change  in  unrealized  derivative  gains on cash flow
        hedge, net of tax benefit (expense) of $0,
        ($73,567), $0, and ($101,319)                                     --          113,721               --           156,621
                                                                ------------     ------------     ------------      ------------
     Net other comprehensive income (loss)                           240,462          479,116          (32,675)        1,024,669
                                                                ------------     ------------     ------------      ------------

Comprehensive income                                            $    833,774     $  1,124,479     $  1,142,016      $  2,300,987
                                                                ============     ============     ============      ============
</TABLE>

           See accompanying notes to consolidated financial statements

                                                                               4
<PAGE>

                       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 accounting principles generally accepted in the United States
of America (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, 2002. 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 six months
ended September 30, 2002 are not necessarily indicative of results that may be
expected for the entire fiscal year ending March 31, 2003.

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 September 30, 2001, March 31, 2002, and September 30, 2002
consists of the following:

<TABLE>
<CAPTION>
                                          September 30,      March 31,      September 30,
                                               2001            2002             2002
                                          ------------     ------------     ------------
                                           (Unaudited)                       (Unaudited)
<S>                                       <C>              <C>              <C>
Real estate loans:
     Residential                          $ 74,086,931     $ 66,420,336     $ 68,649,670
     Commercial                             44,897,010       52,495,723       59,036,635
     Agricultural                           16,395,424       16,263,924       16,609,572
     Construction                            9,007,009        9,869,760       34,059,928

Other loans:
     Commercial (non-real estate)           32,523,099       55,568,478       44,053,833
     Other consumer                          8,276,860        7,924,176        8,547,468
     Home equity                            26,173,330       24,831,875       23,639,696
     Agricultural operating                 10,471,468       12,288,953       14,359,477
                                          ------------     ------------     ------------

Total loans receivable                     221,831,131      245,663,225      268,956,279

Less:
     Loans in process                        3,384,550        4,272,302       15,166,975
     Unearned loan fees and discounts          535,594          692,008          984,489
     Allowance for loan losses               2,090,500        2,562,757        2,883,434
                                          ------------     ------------     ------------

Loans receivable, net                     $215,820,487     $238,136,158     $249,921,381
                                          ============     ============     ============
</TABLE>

                                                                               5
<PAGE>

(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 September
30, 2001 and September 30, 2002 were $78,551,468 and $80,224,335 respectively.

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

<TABLE>
<CAPTION>
                                                                   One Year to      Five Years to
                                              Less than One      Less than Five     Less than Ten     Greater than
At September 30,2001:                              Year               Years             Years           Ten Years
                                                   ----               -----             -----           ---------
<S>                                           <C>                <C>                <C>                <C>
Maturities of advances from FHLB              $ 16,574,000       $ 48,831,500       $ 11,850,000       $ 1,295,968
Range of interest rates                         3.68% - 6.58%      4.60% - 6.62%    4.87% - 5.48%           6.66%
Weighted average interest rate                      4.56%              5.47%            4.95%               6.66%
Percentage of total advances                       21.10%             62.17%            15.08%              1.65%


<CAPTION>
                                                                   One Year to      Five Years to
                                              Less than One      Less than Five     Less than Ten     Greater than
At September 30, 2002:                             Year               Years             Years           Ten Years
                                                   ----               -----             -----           ---------
<S>                                           <C>                <C>                <C>                <C>
Maturities of advances from FHLB               $ 9,436,300       $ 52,371,404        $17,170,664       $ 1,245,967
Range of interest rates                         2.47% - 6.59%      4.40% - 6.62%    3.33% - 6.21%           6.66%
Weighted average interest rate                      4.47%              5.32%            4.52%               6.66%
Percentage of total advances                       11.76%             65.28%            21.40%              1.55%
</TABLE>


As of September 30, 2001, there were $10.75 million of advances from Federal
Home Loan Bank that were callable, of which $10.0 million of five to less than
ten year advances were callable within one to less than five years and $0.75
million of five to less than ten year advances were callable within one year. As
of September 30, 2002, there were $25.75 million of advances from Federal Home
Loan Bank that were callable, of which $10.75 million of five to less than ten
year advances were callable within one year, $5.0 million of five to less than
ten year advances were callable within one to less than five years, and $10.0
million of one to less than five year advances were callable within one year.


(4)      DIVIDEND

On July 17, 2002, the Board of Directors declared a cash dividend of $0.12 per
common share to shareholders of record as of August 9, 2002. This dividend was
paid on August 23, 2002. On October 17, 2002, the Board of Directors declared a
cash dividend of $0.15 per common share to shareholders of record as of November
14, 2002. The dividend will be paid on November 29, 2002.

                                                                               6
<PAGE>

(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:

<TABLE>
<CAPTION>
                                 For the Three Months Ended September 30, 2001         For the Six Months Ended September 30, 2001
                                 ---------------------------------------------         --------------------------------------------

                                                    Weighted-       Per-Share                             Weighted-      Per-Share
                                    Net Income    Average Shares      Amount             Net Income     Average Shares     Amount
                                    ----------    --------------      ------             ----------     --------------     ------
<S>                                 <C>           <C>               <C>                  <C>            <C>              <C>
Basic EPS:
Income available to common
    Stockholders                      $ 593,312        1,356,792      $ 0.44             $1,174,691          1,372,325     $ 0.86
                                                                      ======                                               ======
Effect of dilutive securities:
    Restricted stock awards                  --           40,516                                 --             55,133
                                      ---------        ---------                         ----------          ---------

Diluted EPS:
  Income available to common
    Stockholders - assumed
    Conversions                       $ 593,312        1,397,308      $ 0.43             $1,174,671          1,427,458     $ 0.82
                                      =========        =========      ======             ==========          =========     ======

<CAPTION>
                                 For the Three Months Ended September 30, 2002         For the Six Months Ended September 30, 2002
                                 ---------------------------------------------         --------------------------------------------

                                                    Weighted-       Per-Share                             Weighted-      Per-Share
                                    Net Income    Average Shares      Amount             Net Income     Average Shares     Amount
                                    ----------    --------------      ------             ----------     --------------     ------
<S>                                 <C>           <C>               <C>                  <C>            <C>              <C>
Basic EPS:
Income available to common
    Stockholders                      $ 645,363        1,290,589      $ 0.50             $1,276,318          1,296,270     $ 0.98
                                                                      ======                                               ======
Effect of dilutive securities:
    Restricted stock awards                  --           42,489                                 --             49,560
                                      ---------        ---------                         ----------          ---------

Diluted EPS:
  Income available to common
    Stockholders - assumed
    Conversions                       $ 645,363        1,333,078      $ 0.48             $1,276,318          1,345,830     $ 0.95
                                      =========        =========      ======             ==========          =========     ======
</TABLE>

As of September 30, 2001, outstanding options to purchase 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. As of September 30, 2002, outstanding
options to purchase 148,400 shares of the Company's common stock were included
in the computation of diluted EPS. Diluted earnings per share takes into account
the potential dilutive impact of such instruments as stock options and uses
average market price for the period in determining the number of incremental
shares to add to the weighted-average number of shares outstanding.

(6)      COMMITMENTS AND CONTINGENCIES

In September of 2002, the Bank signed a contract for $602,600 with a general
contractor to remodel and expand the Orchards Branch in Lewiston, Idaho. This
contracted construction cost is excluding architectural fees, equipment,
furniture, telephone cabling, security/fire alarms, land costs and other
necessary operating items. Also, this contracted construction cost is subject to
potential savings on several areas of subcontracted items. This project was
started October of 2002 and is scheduled to be completed in February of 2003.

                                                                               7
<PAGE>

(7)      SUBSEQUENT EVENTS

On October 17, 2002, the Board of Directors of FirstBank NW Corp. authorized a
5% stock repurchase program, which is a total of 69,300 shares.

In November of 2002, the Bank is reviewing a contract for approximately $2.5
million for the construction of a new building and branch in Clarkston,
Washington. Currently, the proposed construction cost is subject to negotiation
changes. This project is expected to start in November of 2002 and be completed
within the twelve month period.

(8)      EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS

In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities" This Statement addresses financial accounting
and reporting for costs associated with exit or disposal activities and
nullifies Emerging Issues Task Force (EITF) Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)." The provisions
of this Statement are effective for exit or disposal activities that are
initiated after December 31, 2002, with early application encouraged. Management
does not expect the impact of adopting the provisions of SFAS No. 146 to
significantly impact the financial position or results of operations of the
Company.

In October 2002, the FASB issued SFAS No. 147, "Acquisitions of Certain
Financial Institutions an amendment of FASB Statements No. 72 and 144 and FASB
Interpretation No. 9." Except for transactions between two or more mutual
enterprises, this Statement removes acquisitions of financial institutions from
the scope of both Statement 72 and Interpretation 9 and requires that those
transactions be accounted for in accordance with SFAS No. 141, and SFAS No. 142.
In addition, this Statement amends SFAS No. 144 to include in its scope
long-term customer-relationship intangible assets of financial institutions such
as depositor- and borrower-relationship intangible assets and credit cardholder
intangible assets. The provisions of this Statement are effective on or after
October 1, 2002. Management does not expect the impact of adopting the
provisions of SFAS No. 147 to significantly impact the financial position or
results of operations of the Company.

(9)      Derivative financial instrument designated as hedges

As part of the Corporation's asset/liability management, the Corporation uses a
swap agreement to hedge interest rate risk. The derivative used as part of the
asset/liability management process is linked to specific assets and has a high
correlation between the contract and the underlying item being hedged, both at
inception and throughout the hedge period. These derivatives are designated and
qualify as fair value and cash flow hedges of certain assets and liabilities in
accordance with SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities" ("SFAS No. 133"), as amended by SFAS No. 137 and No. 138. SFAS No.
133 establishes accounting and reporting standards for financial derivatives,
including certain financial derivatives embedded in other contracts, and hedging
activities. The standard requires the recognition of all financial derivatives
as assets or liabilities in the Company's statement of financial condition at
fair value. The accounting treatment of changes in fair value is dependent upon
whether or not a financial derivative is designated as a hedge and if so, the
type of hedge.

In accordance with SFAS No. 133, SFAS No. 133, the Company recognizes all
derivatives on the statement of financial condition at fair value. Fair value is
based on dealer quotes, or quoted prices from instruments with similar
characteristics. The Company uses financial derivatives designated for hedging
activities as cash flow hedges. For derivatives designated as cash flow hedges,
changes in fair value are recognized in other comprehensive income until the
hedged item is recognized in earnings.

The Company formally documents all relationships between hedging instruments and
hedged items, as well as its risk-management objective and strategy for
undertaking various hedge transactions. The Company also formally assesses (both
at the hedge's inception and on an ongoing basis) whether the derivatives that
are used in hedging transactions have been highly effective in offsetting
changes cash flows of hedged items and whether those derivatives may be expected
to remain highly effective in future periods. The Company will discontinue hedge
accounting prospectively when it determines that the derivative is no longer an
effective hedge, the derivative expires or is sold, or management discontinues
the derivative's hedge designation.

At September 30, 2002, the Company had a swap agreement to exchange monthly
payments on a notional amount of $10 million. The agreement terminates May 29,
2004. Under this two year agreement, the Company swapped a variable rate payment
equal to Prime for a 6.32% fixed rate payment. Amounts to be paid or received on
the interest rate swap will be included into earnings upon the receipt of
interest payments on the underlying hedged loans, including amounts totaling
$53,337 that were included in earnings during the six months ended September 30,
2002. The estimated net amount of the September 30, 2002 existing gains that are
expected to be included into earnings within the next 12 months is approximately
$157,000. During the quarter ending September 30, 2002 the Company recorded a
credit of $113,721, net of $73,567 tax, to other comprehensive income arising
from the change in value of cash flow hedges. During the six months ending
September 30, 2002 the Company recorded a credit of $156,621, net of $101,319
tax, to other comprehensive income arising from the change in value of cash flow
hedges.

                                                                               8
<PAGE>

Item 2

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OR
                                PLAN OF OPERATION


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, 2002.

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 September 30, 2002 the Bank had six offices in Idaho and two in
Washington.

In April of 2002, the Bank opened a loan production office in Boise, Idaho for
mortgage lending. In August of 2002, the Bank opened a loan production office in
Spokane, Washington for commercial lending. The Bank's management is reviewing
the feasibility of opening branches in Boise, Idaho and the Coeur d'Alene, Idaho
area. The Bank is remodeling and expanding its Orchards Branch in Lewiston,
Idaho and is expecting to build a branch in Clarkston, Washington.

On October 17, 2002, the Board of Directors of FirstBank NW Corp. authorized a
5% stock repurchase program, which is a total of 69,300 shares.

CRITICAL ACCOUNTING POLICIES

Various elements of our accounting policies, by their nature, are inherently
subject to estimation techniques, valuation assumptions and other subjective
assessments. In particular, we have identified three policies that, due to the
judgments, estimates and assumptions inherent in those policies, are critical to
an understanding of our financial statements. These policies relate to the
valuation of our Mortgage Servicing Rights, the methodology for the
determination of our allowance for loan losses and the valuation of real estate
held for sale. These policies and the judgments, estimates and assumptions are
described in greater detail in the consolidated financial statements included in
the March 31, 2002 Form 10-KSB. In particular, the "Summary of Significant
Accounting Policies" describes generally our accounting policies. We believe
that the judgments, estimates and assumptions used in the preparation of our
Consolidated Financial Statements are appropriate given the factual
circumstances at the time. However, given the sensitivity of our Consolidated
Financial Statements to these critical accounting policies, the use of other
judgments, estimates and assumptions could result in material differences in our
results of operations or financial condition.

FINANCIAL CONDITION AT SEPTEMBER 30, 2002 AND MARCH 31, 2002

Assets increased from $307.8 million at March 31, 2002 to $325.8 million at
September 30, 2002. Cash and cash equivalents increased from $24.0 million at
March 31, 2002 to $28.3 million at September 30, 2002 as a result of an increase
in non-interest bearing deposits of $3.7 million, an increase in federal funds
sold of $2.3 million, and a decrease in interest bearing deposits of $1.7
million. Available-for-sale investment securities increased $1.6 million, of
which $0.5 million is due to purchase of securities and $1.1 million is the
increase in market value. Net loans receivable increased from $238.1 million at
March 31, 2002 to $249.9 million at September 30, 2002. This change in net loans
receivable resulted from increases in agricultural loans of $2.4 million,
construction loans of $13.1 million, and residential loans of $2.0 million, and
decreases in commercial loans of $5.2 million and consumer loans of

                                                                               9
<PAGE>

$0.5 million. Accrued interest receivable increased from $1.9 million at March
31, 2002 to $2.4 million at September 30, 2002. Cash surrender value of bank
owned and other insurance policies increased from $6.8 million at March 31, 2002
to $ 7.1 million at September 30, 2002. Deposits increased from $196.1 million
at March 31, 2002 to $210.7 million at September 30, 2002 as a result of
decreases in brokered CD's of $0.5 million, CD's of $0.7 million, and money
market accounts of $0.3 million, and increases in savings deposits of $0.8
million, non-interest checking accounts of $6.7 million, and interest checking
accounts of $8.6 million. Federal Home Loan Bank of Seattle (FHLB) advances
increased from $79.7 million at March 31, 2002 to $80.2 million at September 30,
2002. Accrued expenses and other liabilities increased from $2.6 million at
March 31, 2002 to $3.6 million at September 30, 2002. 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 $0.6 million at March 31, 2002 to $1.5 million
at September 30, 2002. The economic conditions of FirstBank Corporation's
operating environment may cause future additions to non-accrual loans.

FINANCIAL CONDITION AT SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2002

Assets increased from $291.2 million at September 30, 2001 to $325.8 million at
September 30, 2002. Cash and cash equivalents increased from $27.3 million at
September 30, 2001 to $28.3 million at September 30, 2002 as a result of an
increase in non-interest bearing deposits of $4.4 million, a decrease in federal
funds sold of $3.7 million, and an increase in interest bearing deposits of $0.3
million. Available-for-sale investment securities increased $1.5 million, which
is due to purchasing $1.9 million of securities, $1.1 million of proceeds from
sales of securities, and $2.3 million is the increase in market value. The $2.6
million decrease in mortgage-backed securities is mostly due to proceeds from
maturities of securities. Net loans receivable increased from $215.8 million at
September 30, 2001 to $249.9 million at September 30, 2002. This change in net
loans receivable resulted from increases in commercial loans of $25.1 million,
agricultural loans of $4.0 million, and construction loans of $13.3 million, and
decreases in residential loans of $6.0 million and consumer loans of $2.3
million. Accrued interest receivable decreased from $2.7 million at September
30, 2001 to $2.4 million at September 30, 2002. Cash surrender value of bank
owned and other insurance policies increased from $6.5 million at September 30,
2001 to $ 7.1 million at September 30, 2002. Deposits increased from $180.8
million at September 30, 2001 to $210.7 million at September 30, 2002 as a
result of increases in savings deposits of $1.9 million, brokered CD's of $7.6
million, CD's of $2.2 million, non-interest checking accounts $4.5 million, and
interest checking accounts of $14.2 million, and decreases in money market
accounts of $0.5 million. Federal Home Loan Bank of Seattle (FHLB) advances
increased from $78.6 million at September 30, 2001 to $80.2 million at September
30, 2002. Accrued expenses and other liabilities increased from $2.1 million at
September 30, 2001 $3.6 million at September 30, 2002. Non accrual loans
decreased from $1.7 million at September 30, 2001 to $1.5 million at September
30, 2002.

RESULTS OF OPERATIONS FOR THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2002

Net income increased from $593,312 for the three months ended September 30, 2001
to $645,363 for the three months ended September 30, 2002.

Net interest income increased from $2.5 million for the three months ended
September 30, 2001 to $2.9 million for the three months ended September 30,
2002. Total interest income remained at $5.2 million for the three months ended
September 30, 2001 and 2002. The yield on interest earning assets decreased from
7.96% for the three months ended September 30, 2001 to 7.22% for the three
months ended September 30, 2002, which offsets the return on the $25.5 million
increase in average interest earning assets. The average balance of loans
receivable was $224.0 million in the second quarter of 2001 compared to $246.7
million in the second quarter of 2002. Interest income from investment
securities increased from $150,000 for the three months ended September 30, 2001
to $161,000 for the three months ended September 30, 2002. Interest income from
mortgage-backed securities decreased from $233,000 for the three months ended
September 30, 2001 to $186,000 for the three months ended September 30, 2002.
The decrease is due to the combination of an overall lower yield on
mortgage-backed securities and the proceeds from maturities of securities.
Interest expense decreased from $2.7 million for the three months ended
September 30, 2001 to $2.3 million for the same period in 2002. 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 September 30, 2001 was $85.9 million, whereas the
average FHLB advances balance as of September 30, 2002 was $81.4 million. The
weighted average rate on FHLB advances for the three months ended September 30,
2001 was 5.30%, whereas the weighted average rate on FHLB advances as of
September 30, 2002 was 5.04% The average deposit balance for the three months
ended September 30, 2001 was $149.0 million, whereas the average deposit balance
as of September 30, 2002 was $174.2 million. The weighted average rate on
deposits for the three months ended September 30, 2001 was 4.11%, whereas the
weighted average rate on deposits as of September 30, 2002 was 2.81%.

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 periodically 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

                                                                              10
<PAGE>

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 $185,000 for the three months
ended September 30, 2001 to $228,000 for the three months ended September 30,
2002.

Non-interest income increased from $1.0 million for the three months ended
September 30, 2001 to $1.1 million for the three months ended September 30,
2002. The primary reason for the increase in non-interest income is due to the
gain on sale of loans and income generated from automated teller machine, visa
check card, checking account charges and merchant bank card service fees.

Non-interest expense increased from $2.5 million for the three months ended
September 30, 2001 to $2.9 million for the three months ended September 30,
2002. The increase in compensation and employee related benefits expense of
$314,000, or 21.5% increase, is consistent with our 16.4% increase in full-time
equivalent employees from 116 to 135 for the quarters ended September 30, 2001
and 2002, respectively. Non-interest expense for the three months ended
September 30, 2002 include expenses for the Boise, Idaho and Spokane, Washington
loan production offices, which did not exist for the three months ended
September 30, 2001. The increase in other non-interest expense of $75,000 is
mostly the result of increases in data processing expense of $14,000, supplies
expense of $20,000, insurance expense of $6,000, merchant bankcard expense of
$26,000, corresponding bank service charges of $26,000, and loan expense of
$36,000.

Income taxes decreased from an expense of $279,000 for the three months ended
September 30, 2001 to $252,000 for the same time period in 2002, due to a
decrease in the effective tax rates. The effective tax rates for the quarters
ended September 30, 2001 and 2002 were 32.00% and 28.05% respectively. The
decrease in the effective tax rates is due to the taxable timing difference of
life insurance income.

RESULTS OF OPERATIONS FOR SIX MONTHS ENDED SEPTEMBER 30, 2001 AND 2002

Net income increased from $1,174,691 for the six months ended September 30, 2001
to $1,276,318 for the six months ended September 30, 2002.

Net interest income increased from $5.0 million for the six months ended
September 30, 2001 to $5.8 million for the six months ended September 30, 2002.
Total interest income decreased from $10.5 million for the six months ended
September 30, 2001 to $10.2 million for the six months ended September 30, 2002.
Interest income from loans receivable decreased from $9.3 million for the six
months ended September 30, 2001 to $9.1 million for the six months ended
September 30, 2002. The decrease resulted from an increase in average commercial
loans receivable balance from $80.8 million at September 30, 2001 to $103.2
million at September 30, 2002. The weighted average yield on commercial loans
decreased from 8.43% at September 30, 2001 to 6.91% at September 30, 2002.
Interest income from mortgage-backed securities decreased from $526,000 for the
six months ended September 30, 2001 to $371,000 for the six months ended
September 30, 2002. The decrease in mortgage-backed securities interest income
is due to the combination of an overall lower yield on mortgage-backed
securities and the lower average balance of securities in the six months ended
September 30, 2002 than September 30, 2001. Interest income from investment
securities increased from $303,000 for the six months ended September 30, 2001
to $318,000 for the six months ended September 30, 2002. Interest expense
decreased from $5.5 million for the six months ended September 30, 2001 to $4.5
million for the same period in 2002. The decrease in interest expense is due to
a decrease in average FHLB advances and a decrease in weighted average rates on
advances and deposits. The decrease in the average FHLB advances balance for the
six months ended September 30, 2001 was $89.6 million, whereas the average FHLB
advances balance for the six months ended September 30, 2002 was $81.6 million.
The weighted average rate on advances and deposits were 4.70% and 3.54% for the
six month periods ended September 30, 2001 and 2002, respectively.

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 periodically 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
$414,000 for the six months ended September 30, 2001 to $438,000 for the six
months ended September 30, 2002.

                                                                              11
<PAGE>

Non-interest income increased from $2.0 million for the six months ended
September 30, 2001 to $2.1 million for the six months ended September 30, 2002.
The increase in non-interest income is due to the gain on sale of loans and
income generated from automated teller machine, visa check card, checking
account charges and merchant bank card service fees.

Non-interest expense increased from $4.9 million for the six months ended
September 30, 2001 to $5.6 million for the six months ended September 30, 2002.
The increase in compensation and employee related benefits expense of $558,000
is a result of additional compensation and employee related benefits from
additional staff. The increase in other non-interest expense of $205,000 is
mostly the result of increased expenses related to merchant bank card, checking
accounts, and supplies.

Income taxes decreased from an expense of $587,000 for the six months ended
September 30, 2001 to $461,000 for the same time period in 2002, due to a
decrease in the effective tax rates. The effective tax rates for the six months
ended September 30, 2001 and 2002 were 33.31% and 26.52% respectively. The
decrease in the effective tax rates is due to the taxable timing difference of
life insurance income.

ASSET CLASSIFICATION

The State of Washington has adopted various regulations regarding problem assets
of savings institutions. The regulations require that each insured institution
review and classify its assets on a regular basis. In addition, in connection
with examinations of insured institutions, State of Washington examiners have
authority to identify problem assets and, if appropriate, require them to be
classified. There are three classifications for problem assets: substandard,
doubtful and loss. Substandard assets have one or more defined weaknesses and
are characterized by the distinct possibility that the insured institution will
sustain some loss if the deficiencies are not corrected. Doubtful assets have
the weaknesses of substandard assets with the additional characteristic that the
weaknesses make collection or liquidation in full on the basis of currently
existing facts, conditions and values questionable, and there is a high
possibility of loss. An asset classified as loss is considered uncollectible and
of such little value that continuance as an asset of the institution is not
warranted. If an asset or portion thereof is classified as loss, the insured
institution establishes specific allowances for loan losses for the full amount
of the portion of the asset classified as loss. All or a portion of general loan
loss allowances established to cover possible losses related to assets
classified substandard or doubtful may be included in determining an
institution's regulatory capital, while specific valuation allowances for loan
losses generally do not qualify as regulatory capital. Assets that do not
currently expose the insured institution to sufficient risk to warrant
classification in one of the aforementioned categories but possess weaknesses
are classified as special mention and monitored by the Company.

At September 30, 2002, classified assets of the Company totaled $1.6 million.
Assets classified as loss totaled $25,000 and consisted of overdrawn negotiable
order of withdrawal ("NOW") accounts totaling $9,000, a small business loan of
$3,000 and installment loans of $13,000. Assets classified as substandard
totaled $1.5 million, which consisted of $334,000 of commercial loans, $264,000
of consumer loans, $700,000 of residential loans, $111,000 of agricultural
loans, and a $131,000 REO. The aggregate amounts of the Bank's classified assets
at the dates indicated were as follows:

                                                 At September 30,
                                           -----------------------------
                                               2001             2002
                                           ------------     ------------
                                                  (In Thousands)
     Loss                                  $         42     $         25
     Doubtful                                        --               --
     Substandard                                  1,923            1,540
                                           ------------     ------------
     Total classified assets               $      1,965     $      1,565
                                           ============     ============

                                                                              12
<PAGE>

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.

<TABLE>
<CAPTION>
                                           Year Ending                              Six Months Ending
                                          March 31, 2002                           September 30, 2002
                                  ------------------------------            ------------------------------
                                              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         $ 71,426   $  5,415       7.58%           $ 64,724   $  2,373       7.33%
Commercial loans receivable         87,022      6,658       7.74             103,235      3,523       6.91
Construction loans receivable        6,659        692      10.39              13,750        739      10.75
Consumer loans receivable           34,657      2,917       8.42              32,495      1,348       8.30
Agricultural loans receivable       27,748      2,238       8.07              31,065      1,082       6.97
Unearned loan fees and
   discounts and allowance
   for loan losses                  (2,659)        --         --              (3,411)        --         --
                                  --------   --------   --------            --------   --------   --------
Loans receivable, net              224,853     17,920       8.00             241,858      9,065       7.53
Mortgage-backed securities          14,036        927       6.60              11,225        371       6.61
Investment securities               12,448        611       6.84              13,018        318       6.80
Other earning assets                17,886        789       4.89              22,110        474       5.09
                                  --------   --------                       --------   --------
Total interest-earning assets      269,223     20,247       7.67             288,211     10,228       7.27
                                             --------                                  --------

Non-interest-earning assets         19,110                                    20,984
                                  --------                                  --------
Total assets                      $288,333                                  $309,195
                                  ========                                  ========

Interest-earning liabilities:
Passbook, NOW and money
   market accounts                $ 53,960      $ 916       1.70            $ 64,532   $    280       0.87
Certificates of deposit             98,701      4,747       4.81             106,788      2,164       4.05
                                  --------   --------                       --------   --------
Total deposits                     152,661      5,663       3.71             171,320      2,444       2.85

Advances from FHLB & other          83,395      4,328       5.19              81,598      2,033       4.98
                                  --------   --------                       --------   --------
Total interest-bearing
    liabilities                    236,056      9,991       4.23             252,918      4,477       3.54
                                             --------                                  --------
Total non-interest-bearing
   deposits                         19,752                                    23,080
Non-interest-bearing
    liabilities                      4,467                                     4,544
                                  --------                                  --------
Total liabilities                  260,275                                   280,542
Total stockholders' equity          28,058                                    28,653
                                  --------                                  --------

Total liabilities and
   total stockholders' equity     $288,333                                  $309,195
                                  ========                                  ========

Net interest income                          $ 10,256                                  $  5,751
                                             ========                                  ========

Interest rate spread                                        3.44%                                     3.73%
                                                        ========                                  ========

Net interest margin                             3.96%                                      4.17%
                                             =======                                   ========

Ratio of average interest-
   earning assets to average
   interest- bearing liabilities              114.05%                                    113.95%
                                             =======                                   ========

<FN>
(1) Does not include interest on loans 90 days or more past due.
</FN>
</TABLE>
                                                                              13
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

The primary function of asset/liability management is to ensure adequate
liquidity and maintain an appropriate balance between interest sensitive earning
assets and liabilities. Management actively analyzes and manages the Company's
liquidity position. The objective of liquidity management is to ensure the
availability of sufficient cash flows to support loan growth and deposit
withdrawals, to satisfy financial commitments and to take advantage of
investment opportunities.

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. See the Company's Consolidated Statement of
Cash Flows to assist in analyzing our liquidity position.

The primary investing activity of the Company is the origination of loans.
During the six month period ended September 30, 2002, the Company originated
loans based upon new production in the amounts of $160.0 million. The Company
maintains a ladder of securities that provides prepayments and payments at
maturity and a portfolio of available-for-sale securities that could be
converted to cash quickly. Proceeds from maturity and sale of securities
provided $6.5 million and $0.9 million for the six months ended September 30,
2001 and 2002, respectively. Proceeds from the sale of loans provided $48.9
million for the six months ended September 30, 2001 and $63.9 million for the
six months ended September 30, 2002.

The primary financing activities of the Company are customer deposits, brokered
deposits, and advances from FHLB. As indicated on the Company's Consolidated
Statement of Cash Flows, deposits provided $23.0 million for the six months
ended September 30, 2001 and $14.6 million for the six months ended September
30, 2002, of which $16.1 million increase in branch deposits and $1.5 million
decrease in brokered deposits. In addition, the Company maintains a credit
facility with the FHLB of Seattle, which provides for immediately available
advances. FHLB advances totaled $78.6 million at September 30, 2001 and $80.2
million at September 30, 2002. 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
September 30, 2001 and 2002. 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. Cash provided by advances from FHLB and
other borrowing facilities were $129.9 million for the six months ended
September 30, 2001 and $41.0 million for the six months ended September 30,
2002. Cash used for payments on these advances were $142.2 million for the six
months ended September 30, 2001 and $40.5 million for the six months ended
September 30, 2002.

At September 30, 2002, the Company held cash and cash equivalents of $28.3
million. In addition, at such date $14.1 million of the Company's investment
securities were classified as available for sale.

The Company has commitments that have a future impact on the Company's liquidity
position. Since some commitments are expected to expire without being drawn
upon, the total commitment amounts do not represent future cash requirements. At
September 30, 2002, the Company had loan commitments totaling $50.8 million,
undisbursed lines of credit totaling $53.4 million, and undisbursed loans in
process totaling $15.2 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
September 30, 2002 totaled $58.4 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 September 30, 2002, 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 8.56%,
11.87% and 13.12% 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. The asset/liability management committee ("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.

                                                                              14
<PAGE>

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. Based on the
asset-sensitivity of the balance sheet at September 30, 2002, the Bank is
expecting to be well positioned to benefit from rising and declining rates. If
rates were to sustain an immediate 200 bp increase, net interest income would be
expected to rise by 6.21%, all else being equal. If rates were to sustain an
immediate 200 bp decrease, net interest income would be expected to decline by
2.53%, all else being equal. The following reflects the Company's NII
sensitivity analysis as of September 30, 2001, March 31, 2002 and September 30,
2002 as compared to the 10.00% Board approved policy limit.

     September 30, 2001:        -200 BP             Flat              +200 BP
                                -------             ----              -------
                                           (Dollars in Thousands)
     Year 1 NII                $ 10,698           $ 10,947            $ 11,065
     NII $ Change              $   (249)                --            $    118
     NII % Change                 -2.27%                --                1.08%


     March 31, 2002:            -200 BP             Flat              +200 BP
                                -------             ----              -------
                                           (Dollars in Thousands)
     Year 1 NII                $ 11,317           $ 11,549            $ 11,851
     NII $ Change              $   (232)                --            $    302
     NII % Change                 -2.01%                --               2.61%


     September 30, 2002:        -200 BP             Flat              +200 BP
                                -------             ----              -------
                                           (Dollars in Thousands)
     Year 1 NII                $ 12,004           $ 12,316            $ 12,790
     NII $ Change              $   (312)                --            $    474
     NII % Change                 -2.53%                --                6.21%


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.

                                                                              15
<PAGE>

Item 3 - Controls and Procedures

     (a)  Evaluation of Disclosure Controls and Procedures: An evaluation of the
          Registrant's disclosure controls and procedures (as defined in Section
          13(a)-14(c) of the Securities Exchange Act of 1934 (the "Act")) was
          carried out under the supervision and with the participation of the
          Registrant's Chief Executive Officer, Chief Financial Officer and
          several other members of the Registrant's senior management within the
          90-day period preceding the filing date of this quarterly report. The
          Registrant's Chief Executive Officer and Chief Financial Officer
          concluded that the Registrant's disclosure controls and procedures as
          currently in effect are effective in ensuring that the information
          required to be disclosed by the Registrant in the reports it files or
          submits under the Act is ( i ) accumulated and communicated to the
          Registrant's management (including the Chief Executive Officer and
          Chief Financial Officer) in a timely manner, and ( ii ) recorded,
          processed, summarized and reported within the time periods specified
          in the SEC's rules and forms.

     (b)  Changes in Internal Controls: In the quarter ended September 30, 2002,
          the Registrant did not make any significant changes in, nor take any
          corrective actions regarding, its internal controls or other factors
          that could significantly affect these controls.

                                                                              16
<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 (a)  Bylaws of the Registrant (1)

                  3.2 (b)  Bylaws Amendment adopted by the Board of Directors on
                           May 23, 2002 (2)

                  10.1     Employment Agreement between FirstBank Northwest,
                           FirstBank Corp. and Clyde E. Conklin (3)

                  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)

                  99.1     Certification of Chief Executive Officer and Chief
                           Financial Officer of FirstBank NW Corp. Pursuant to
                           Section 906 of the Sarbanes-Oxley Act of 2002

         (1)  Incorporated by reference to the Registrant's Annual Report on
              Form 10-KSB 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, 2002.

         (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.

                                                                              17
<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:  November  14, 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

                                                                              18
<PAGE>

                             Certification Required
      By Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934


I, Clyde E. Conklin, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of FirstBank NW Corp.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a.   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     b.   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):

     a.   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     b.   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6.   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



/s/ Clyde E. Conklin
-----------------------------------
Chief Executive Officer


Dated:  November 14, 2002

                                                                              19
<PAGE>

                             Certification Required
      By Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934


I, Larry K. Moxley, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of FirstBank NW Corp.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a.   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     b.   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):

     d.   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     e.   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6.   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



/s/ Larry K. Moxley
---------------------------------
Chief Financial Officer


Dated: November 14, 2002

                                                                              20