U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)

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

                For the quarterly period ended December 31, 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 1,292,941 shares
outstanding on February 13, 2003.

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
             December 31, 2002, March 31, 2002, and December 31, 2001          1
         Consolidated Statements of Income
            For the three months and nine months ended December 31,
               2002 and 2001                                                   2
         Consolidated Statements of Cash Flows
            For the nine months ended December 31, 2002 and 2001               3
         Consolidated Statements of Comprehensive Income
            For the three months and nine months ended December 31,
               2002 and 2001                                                   4
         Notes to Consolidated Financial Statements                         5-10

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                               11-17

Item 3.  Controls and Procedures                                              18



PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                                    19
Item 2.  Changes in Securities and Use of Proceeds                            19
Item 3.  Defaults Upon Senior Securities                                      19
Item 4.  Submission of Matters to a Vote of Security Holders                  19
Item 5.  Other Information                                                    19
Item 6.  Exhibits and Reports on Form 8-K                                     19

                                        i
<PAGE>

PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements

                                       FirstBank NW Corp. and Subsidiaries
                                 Consolidated Statements of Financial Condition


<TABLE>
<CAPTION>
                                                                   December 31,      March 31,       December 31,
                                                                       2002            2002              2001
                                                                  -------------    -------------    -------------
                                                                   (Unaudited)                       (Unaudited)
<S>                                                               <C>              <C>              <C>
ASSETS
Cash and cash equivalents:
  Non-interest bearing deposits                                   $  13,287,814    $  10,841,708    $  15,071,601
  Interest bearing deposits                                             729,200        3,318,476          808,446
  Federal funds sold                                                  1,811,000        9,851,718        2,916,000
                                                                  -------------    -------------    -------------
Total cash and cash equivalents                                      15,828,014       24,011,902       18,796,047

Investment securities:
  Available-for-sale                                                 16,580,860       12,523,641       12,201,965
Mortgage-backed securities:
  Held-to-maturity                                                    2,017,246        2,140,478        2,188,978
  Available-for-sale                                                  8,424,584        9,292,604       10,036,767
Loans receivable, net (Note 2)                                      251,716,095      234,395,856      226,076,810
Loans held for sale                                                   8,402,009        3,740,302        5,829,510
Accrued interest receivable                                           2,194,583        1,913,222        2,193,990
Real estate owned                                                        57,627          423,925          177,052
Stock in FHLB, at cost                                                5,636,975        5,379,875        5,301,575
Premises and equipment, net                                           5,805,351        5,506,770        5,593,249
Income taxes receivable                                                 107,883           42,963          209,463
Cash surrender value of bank owned and other insurance policies       7,195,581        6,849,783        6,784,163
Mortgage servicing assets                                               850,830        1,016,953          997,310
Other assets                                                          1,060,613          602,170          714,327
                                                                  -------------    -------------    -------------
TOTAL ASSETS                                                      $ 325,878,251    $ 307,840,444    $ 297,101,206
                                                                  =============    =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Deposits                                                        $ 209,703,163    $ 196,122,514    $ 178,827,821
  Advances from borrowers for taxes and insurance                       677,404        1,395,685          798,887
  Advances from FHLB (Note 3)                                        81,565,282       79,722,443       86,749,292
  Income taxes payable                                                       --               --               --
  Deferred federal and state income taxes                               447,871          185,000          430,869
  Accrued expenses and other liabilities                              4,062,427        2,602,118        2,678,670
                                                                  -------------    -------------    -------------
Total Liabilities                                                   296,456,147      280,027,760      269,485,539
                                                                  -------------    -------------    -------------

  Commitments and contingencies (Note 6)
  Stockholders' Equity (Note 4):
  Preferred stock, $0.01 par value, 500,000 shares authorized;
     0 shares issued and outstanding                                         --               --               --
  Common stock, $0.01 par value, 5,000,000 shares authorized;
     1,380,992, 1,436,392, and 1,452,592 shares issued;
     1,276,439, 1,310,624 and 1,326,282 shares outstanding               13,847           14,400           14,563
  Additional paid-in-capital                                          9,813,703       10,842,691       11,131,171
  Retained earnings, substantially restricted                        19,629,952       18,144,686       17,733,127
  Unearned ESOP shares                                                 (906,870)        (969,580)        (990,470)
  Deferred compensation                                                (215,750)        (393,020)        (452,110)
  Accumulated other comprehensive income                              1,087,222          173,507          179,386
                                                                  -------------    -------------    -------------
Total Stockholders' Equity                                           29,422,104       27,812,684       27,615,667
                                                                  -------------    -------------    -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $ 325,878,251    $ 307,840,444    $ 297,101,206
                                                                  =============    =============    =============
</TABLE>


           See accompanying notes to consolidated financial statements

                                                                               1
<PAGE>

                                        FirstBank NW Corp. and Subsidiaries
                                         Consolidated Statements of Income


<TABLE>
<CAPTION>
                                                   Three-months ended December 31,   Nine-months ended December 31,
                                                          2002          2001               2002          2001
                                                      -----------   -----------        -----------   -----------
                                                                             (Unaudited)

<S>                                                   <C>           <C>                <C>           <C>
Interest income:
  Loans receivable                                    $ 4,655,507   $ 4,374,596        $13,720,642   $13,679,272
  Mortgage-backed securities                              174,583       201,938            545,820       727,998
  Investment securities                                   186,194       149,463            503,889       452,024
  Other interest earning assets                           250,082       221,172            724,313       587,016
                                                      -----------   -----------        -----------   -----------
Total interest income                                   5,266,366     4,947,169         15,494,664    15,446,310
                                                      -----------   -----------        -----------   -----------

Interest expense:
  Deposits                                              1,168,763     1,364,898          3,613,361     4,440,261
  Advances from FHLB and other borrowings               1,022,735       960,259          3,055,302     3,347,244
                                                      -----------   -----------        -----------   -----------
Total interest expense                                  2,191,498     2,325,157          6,668,663     7,787,505
                                                      -----------   -----------        -----------   -----------

Net interest income                                     3,074,868     2,622,012          8,826,001     7,658,805
Provision for loan losses                                 359,330       281,268            797,165       694,823
                                                      -----------   -----------        -----------   -----------
Net interest income after provision for loan losses     2,715,538     2,340,744          8,028,836     6,963,982
                                                      -----------   -----------        -----------   -----------

Non-interest income:
  Gain on sale of loans                                   608,330       561,563          1,532,030     1,396,667
  Gain on sale of securities, net                              --            --                 --       175,249
  Service fees and other charges                          501,216       506,275          1,551,653     1,431,513
  Commissions and other                                    38,605        26,194            122,548        91,277
                                                      -----------   -----------        -----------   -----------
Total non-interest income                               1,148,151     1,094,032          3,206,231     3,094,706
                                                      -----------   -----------        -----------   -----------

Non-interest expense:
  Compensation and employee related benefits            1,821,510     1,488,563          5,286,875     4,395,723
  Occupancy                                               307,177       299,139            932,664       916,379
  Other                                                   751,990       691,863          2,295,489     2,030,075
                                                      -----------   -----------        -----------   -----------
Total non-interest expense                              2,880,677     2,479,565          8,515,028     7,342,177
                                                      -----------   -----------        -----------   -----------

Income before income tax expense                          983,012       955,211          2,720,039     2,716,511
Income tax expense                                        264,350       327,103            725,059       913,711
                                                      -----------   -----------        -----------   -----------
Net income                                            $   718,662   $   628,108        $ 1,994,980   $ 1,802,800
                                                      ===========   ===========        ===========   ===========

Earnings per share (Note 5):
  Net income per share - basic                        $      0.56   $      0.47        $      1.55   $      1.31
  Net income per share - diluted                      $      0.55   $      0.45        $      1.49   $      1.28
  Cash dividends paid per common share                $      0.15   $      0.12        $      0.39   $      0.32
  Weighted average shares outstanding - basic           1,281,290     1,329,762          1,290,530     1,375,366
  Weighted average shares outstanding - diluted         1,313,479     1,382,093          1,338,698     1,408,374
</TABLE>


           See accompanying notes to consolidated financial statements

                                                                               2
<PAGE>

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


<TABLE>
<CAPTION>
                                                                                  Nine-months ended December 31,
                                                                                       2002             2001
                                                                                  -------------    -------------
                                                                                           (Unaudited)

<S>                                                                               <C>              <C>
Cash flows from operating activities:
  Net income                                                                      $   1,994,980    $   1,802,800
  Adjustments to reconcile net income to net cash used in operating activities:
    Depreciation                                                                        468,608          502,649
    Amortization (accretion) of securities, net                                         (15,497)           9,294
    Provision for loan losses                                                           797,165          694,823
    Gain on sale of loans                                                            (1,532,030)      (1,396,667)
    Gain on sale of securities, net                                                          --         (175,249)
    FHLB stock dividends                                                               (257,100)        (269,700)
    ESOP compensation expense                                                           116,452           93,189
    Other (gains) losses, net                                                           (14,607)         (14,996)
    Deferred compensation expense                                                       177,270          177,271
    Deferred income taxes                                                              (346,658)         (69,337)
  Changes in assets and liabilities:
    Accrued interest receivable and other assets                                       (305,427)        (317,901)
    Advances (repayments) from borrowers for taxes and insurance                       (718,281)        (601,743)
    Accrued expenses and other liabilities                                            1,460,080          480,169
    Income taxes receivable                                                             (46,240)         (84,951)
                                                                                  -------------    -------------
Net cash provided by operating activities                                             1,778,715          829,651
                                                                                  -------------    -------------

Cash flows from investing activities:
  Proceeds from maturities of mortgage-backed securities; held-to-maturity              118,855          141,379
  Proceeds from maturities of mortgage-backed securities; available-for-sale          1,352,487        2,239,325
  Proceeds from sale of mortgage-backed securities; available-for-sale                       --        5,271,715
  Purchase of investment securities; available-for-sale                              (3,289,618)              --
  Decrease in loans receivable from loans sold                                      109,446,494       73,154,341
  Other net change in loans receivable                                             (130,693,575)     (85,526,252)
  Purchases of premises and equipment                                                  (767,189)        (106,911)
  Purchase of bank owned and other insurance policies                                        --       (4,749,442)
  Net increase in cash surrender value of life insurance policies                      (345,798)        (290,264)
  Proceeds from sale of real estate owned                                               382,250          177,681
                                                                                  -------------    -------------
Net cash used in investing activities                                               (23,793,094)      (9,688,428)
                                                                                  -------------    -------------

Cash flows from financing activities:
  Cash paid for dividends                                                              (509,714)        (446,504)
  Net increase in deposits                                                           13,580,649       21,030,697
  Advances from FHLB and other borrowings                                            81,766,406      173,167,104
  Payments on advances from FHLB and other borrowings                               (79,923,567)    (177,334,835)
  Proceeds from stock options                                                            66,402               --
  Purchase of stock                                                                  (1,149,685)      (1,566,486)
                                                                                  -------------    -------------
Net cash provided by financing activities                                            13,830,491       14,849,976
                                                                                  -------------    -------------

Net increase (decrease) in cash and cash equivalents                                 (8,183,888)       5,991,199

Cash and cash equivalents, beginning of period                                       24,011,902       12,804,848
                                                                                  -------------    -------------
Cash and cash equivalents, end of period                                          $  15,828,014    $  18,796,047
                                                                                  =============    =============

Supplemental disclosures of cash flow information:
  Cash paid during the period for:
    Interest                                                                      $   6,949,850    $   7,660,112
    Income taxes                                                                  $   1,136,362    $   1,067,999
  Noncash investing and financing activities:
    Unrealized gains (losses) on securities; available-for-sale, net of tax       $     750,010    $    (420,946)
    Unrealized gain on cash flow hedge derivative, net of tax                     $     163,705    $          --
    Loans receivable charged to the allowance for loan losses                     $     174,482    $     153,448
    Transfer from loans converted to real estate acquired through foreclosure     $          --    $     318,261
</TABLE>


           See accompanying notes to consolidated financial statements

                                                                               3
<PAGE>

<TABLE>
<CAPTION>
                                             FirstBank NW Corp. and Subsidiaries
                                       Consolidated Statements of Comprehensive Income


                                                             Three-months ended December 31,   Nine-months ended December 31,
                                                                   2002           2001               2002          2001
                                                               -----------    -----------        -----------   -----------
                                                                                       (Unaudited)

<S>                                                            <C>            <C>                <C>           <C>
Net income                                                     $   718,662    $   628,108        $ 1,994,980   $ 1,802,800
                                                               -----------    -----------        -----------   -----------
Other comprehensive income (loss), net of tax:
     Change in unrealized gains (losses) on securities;
        available-for-sale, net of tax benefit (expense) of
        $76,360, $251,174, ($485,185), and $182,626               (118,039)      (388,271)           750,009      (420,946)
     Change in unrealized derivative gains on cash flow
        hedge, net of tax benefit (expense) of ($4,583), $0,
       ($105,901), and $0                                            7,084             --            163,705            --
                                                               -----------    -----------        -----------   -----------
     Net other comprehensive income (loss)                        (110,955)      (388,271)           913,714      (420,946)
                                                               -----------    -----------        -----------   -----------

Comprehensive income                                           $   607,707    $   239,837        $ 2,908,694   $ 1,381,854
                                                               ===========    ===========        ===========   ===========
</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 nine months
ended December 31, 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 December 31, 2002, March 31, 2002, and December 31, 2001
consists of the following:

                                      December 31,     March 31,    December 31,
                                          2002           2002           2001
                                      ------------   ------------   ------------
                                       (Unaudited)                   (Unaudited)
Real estate loans:
   Residential                        $ 52,337,219   $ 62,680,034   $ 63,917,657
   Commercial                           68,695,843     52,495,723     47,302,624
   Agricultural                         16,474,608     16,263,924     15,822,350
   Construction                         40,954,334      9,869,760      9,467,728

Other loans:
   Commercial (non-real estate)         48,988,888     55,568,478     49,380,052
   Other consumer                        8,164,368      7,924,176      8,097,156
   Home equity                          21,678,840     24,831,875     25,632,172
   Agricultural operating               14,736,315     12,288,953     12,394,007
                                      ------------   ------------   ------------

Total loans receivable                 272,030,415    241,922,923    232,013,746

Less:
   Loans in process                     15,949,852      4,272,302      2,941,713
   Unearned loan fees and discounts      1,174,009        692,008        628,816
   Allowance for loan losses             3,190,459      2,562,757      2,366,407
                                      ------------   ------------   ------------

Loans receivable, net                 $251,716,095   $234,395,856   $226,076,810
                                      ============   ============   ============

Loans held for sale                   $  8,402,009   $  3,740,302   $  5,829,510
                                      ============   ============   ============

                                                                               5
<PAGE>

         The following table sets forth the breakdown of the allowance for loan
losses by loan category for the years indicated. The allocation of the allowance
to each category is not necessarily indicative of future losses and does not
restrict the use of the allowance to absorb losses in any other category.

<TABLE>
<CAPTION>
                                    December 31,        March 31,         December 31,
                                        2002              2002                2001
                                  ---------------    ---------------    ---------------
                                    (Unaudited)                           (Unaudited)
                                         % of Loans         % of Loans         % of Loans
                                         in Category        in Category        in Category
                                          to Total           to Total           to Total
(Dollars in Thousands)            Amount   Loans     Amount   Loans     Amount   Loans
                                  ------   ------    ------   ------    ------   ------

<S>                               <C>      <C>       <C>      <C>       <C>      <C>
Residential                       $  237    21.66%   $  268    27.03%   $  166    29.33%
Construction                         595    14.60       133     4.02       134     3.98
Agricultural                         386    11.13       365    11.62       357    11.86
Commercial                         1,907    41.97     1,571    43.99     1,498    40.65
Consumer and other loans              65    10.64       226    13.34       211    14.18
                                  ------   ------    ------   ------    ------   ------
Total allowance for loan losses   $3,190   100.00%   $2,563   100.00%   $2,366   100.00%
                                  ======   ======    ======   ======    ======   ======
</TABLE>



The following table sets forth the changes in the Bank's allowance for loan
losses for the periods indicated.

<TABLE>
<CAPTION>
                                               Nine-Months    Fiscal Year    Nine-Months
                                                  Ending        Ending          Ending
                                               December 31,    March 31,     December 31,
                                                   2002          2002            2001
                                               -----------    -----------    -----------
                                               (Unaudited)                   (Unaudited)

<S>                                            <C>            <C>            <C>
Balance at beginning of period                 $ 2,562,756    $ 1,758,263    $ 1,758,263
                                               -----------    -----------    -----------

Provision for loan losses                          797,165      1,063,920        694,823
                                               -----------    -----------    -----------

Charge-offs:
   Residential real estate                              --         40,766             --
   Construction real estate                             --         11,703         11,703
   Commercial non-real estate                       17,699         15,924         15,924
   Consumer and other loans                        156,782        198,262         66,140
                                               -----------    -----------    -----------
Total charge offs                                  174,481        266,655         93,767

Recoveries                                           5,019          7,229          7,088
                                               -----------    -----------    -----------

Net charge offs                                    169,462        259,426         86,679
                                               -----------    -----------    -----------

Balance at end of year                         $ 3,190,459    $ 2,562,756    $ 2,366,407
                                               ===========    ===========    ===========

Net charge-offs to average outstanding loans          0.07%          0.07%          0.04%
</TABLE>

                                                                               6
<PAGE>

The following table sets forth information with respect to the Bank's
nonperforming assets and restructured loans within the meaning of generally
accepted accounting principles ("GAAP") at the years indicated. It is the policy
of the Bank to cease accruing interest on loans more than 90 days past due.

<TABLE>
<CAPTION>
                                                December 31,    March 31,     December 31,
                                                    2002          2002            2001
                                                -----------    -----------    -----------
                                                (Unaudited)                   (Unaudited)
<S>                                             <C>            <C>            <C>
Loans accounted for on a  nonaccrual basis:
Real estate loans:
  Residential                                   $   706,270    $   176,670    $   483,121
  Construction                                           --             --        122,400
  Agricultural                                      224,974         85,870        109,450
  Commercial                                        595,291             --             --
Commercial non-real estate                            1,269         89,338        462,391
Consumer and other loans                            195,531        239,045        205,102
                                                -----------    -----------    -----------
Total                                             1,723,335        590,923      1,382,464

Accruing loans which are contractually
  past due 90 days or more                               --             --             --
                                                -----------    -----------    -----------

Total of nonaccrual and 90 days past
  due loans                                       1,723,335        590,923      1,382,464
Real estate owned                                    57,627        423,925        177,052
                                                -----------    -----------    -----------
Total nonperforming loans                         1,780,962      1,014,848      1,559,516

  Restructured loans                            $   411,891    $   106,866    $    16,807
                                                -----------    -----------    -----------

Total nonperforming assets                      $ 2,192,853    $ 1,121,714    $ 1,576,323
                                                ===========    ===========    ===========

Nonaccrual and 90 days or more past due
  loans as a percent of loans receivable, net          0.66%          0.25%          0.60%
Nonaccrual and 90 days or more past
  due loans as a percent of total assets               0.53%          0.19%          0.47%
Nonperforming assets as a percent of
  total assets                                         0.67%          0.36%          0.53%
Total nonperforming assets to total loans              0.78%          0.46%          0.66%
</TABLE>



(3)      ADVANCES FROM FEDERAL HOME LOAN BANK

The Bank utilizes advances from the FHLB-Seattle to supplement its supply of
lendable funds and to meet deposit withdrawal requirements. The FHLB-Seattle
functions as a central reserve bank providing credit for savings associations
and certain other member financial institutions. As a member of the
FHLB-Seattle, the Bank is required to own capital stock in the FHLB-Seattle and
is authorized to apply for advances on the security of such stock and certain of
its mortgage loans and other assets (principally securities that are obligations
of, or guaranteed by, the U.S. Government) provided certain creditworthiness
standards have been met. Advances are made pursuant to several different credit
programs. Each credit program has its own interest rate and range of maturities.
Depending on the program, limitations on the amount of advances are based on the
financial condition of the member institution and the adequacy of collateral
pledged to secure the credit. The Bank is currently authorized to borrow from
the FHLB up to an amount equal to 42% of total assets, providing that the Bank
holds sufficient collateral. Advances from Federal Home Loan Bank at December
31, 2002 and December 31, 2001 were $81,565,282 and $86,749,292 respectively.

                                                                               7
<PAGE>

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 December 31, 2002:                    Year             Years             Years           Ten Years
                                    -------------     -------------     -------------     -------------

<S>                                 <C>               <C>               <C>               <C>
Maturities of advances from FHLB    $   9,356,600     $  48,808,604     $  22,166,610     $   1,233,468
Range of interest rates              1.35% - 6.62%     4.40% - 5.90%     3.33% - 6.21%             6.66%
Weighted average interest rate               4.67%             5.28%             4.27%             6.66%
Percentage of total advances                11.47%            59.84%            27.18%             1.51%
</TABLE>


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

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


As of December 31, 2002, there were $30.75 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 year, $10.75 million of five to less than
ten year advances were callable within one year and $10.0 million of five to
less than ten year advances were callable within one to less than five years. As
of December 31, 2001, there were $15.75 million of advances from Federal Home
Loan Bank that were callable, of which $5.0 million of one year to less than
five year advances were callable within one year, $0.75 million of five to less
than ten year advances were callable within one year, and $10.0 million of five
to less than ten year advances were callable within one to less than five years.

(4)      DIVIDENDS

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. This
dividend was paid on November 29, 2002. On January 16, 2003, the Board of
Directors declared a cash dividend of $0.15 per common share to shareholders of
record as of February 6, 2003. The dividend will be paid on February 20, 2003.

(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 December 31, 2002   For the Nine Months Ended December 31, 2002
                             --------------------------------------------   -------------------------------------------

                                               Weighted-                                      Weighted-
                                                Average    Per-Share                           Average    Per-Share
                                 Net Income     Shares       Amount             Net Income     Shares       Amount
                                 ----------   ----------   ----------           ----------   ----------   ----------
<S>                              <C>           <C>         <C>                  <C>           <C>         <C>
Basic EPS:
Income available to common
    Stockholders                 $  718,662    1,281,290   $     0.56           $1,994,980    1,290,530   $     1.55
                                                           ==========                                     ==========
Effect of dilutive securities:
    Restricted stock awards              --       32,189                                --       48,168
                                 ----------   ----------                        ----------   ----------

Diluted EPS:
  Income available to common
    Stockholders - assumed
    Conversions                  $  718,662    1,313,479   $     0.55           $1,994,980    1,338,698   $     1.49
                                 ==========   ==========   ==========           ==========   ==========   ==========
</TABLE>

                                                                               8
<PAGE>

<TABLE>
<CAPTION>
                             For the Three Months Ended December 31, 2001   For the Nine Months Ended December 31, 2001
                             --------------------------------------------   -------------------------------------------

                                               Weighted-                                      Weighted-
                                                Average    Per-Share                           Average    Per-Share
                                 Net Income     Shares       Amount             Net Income     Shares       Amount
                                 ----------   ----------   ----------           ----------   ----------   ----------
<S>                              <C>           <C>         <C>                  <C>           <C>         <C>
Basic EPS:
Income available to common
    Stockholders                 $  628,108    1,329,762   $     0.47           $1,802,800    1,375,366   $     1.31
                                                           ==========                                     ==========
Effect of dilutive securities:
    Restricted stock awards              --       52,331                                --       33,008
                                 ----------   ----------                        ----------   ----------

Diluted EPS:
  Income available to common
    Stockholders - assumed

    Conversions                  $  628,108    1,382,093   $     0.45           $1,802,800    1,408,374   $     1.28
                                 ==========   ==========   ==========           ==========   ==========   ==========
</TABLE>


As of December 31, 2002, outstanding options to purchase 147,000 shares of the
Company's common stock were included in the computation of diluted EPS as their
effect would have been antidilutive. As of December 31, 2001, outstanding
options to purchase 155,400 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. This contracted construction cost is subject to
potential savings on several areas of subcontracted items. This project started
October of 2002 and is scheduled to be completed in February of 2003.

In December of 2002, the Bank signed a contract for $2.1 million with a general
contractor for the construction of a new building and branch in Clarkston,
Washington. This contracted construction cost is excluding architectural fees,
equipment, furniture, telephone cabling, security/fire alarms, land costs and
other necessary operating items. This contracted construction cost is subject to
potential savings on several areas of subcontracted items. This project started
December of 2002 and is scheduled to be completed in June of 2003.

(7)      EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS

In December 2002, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 148, "Accounting for
Stock-Based Compensation--Transition and Disclosure--an amendment of FASB
Statement No. 123." SFAS No. 148 amends FASB Statement No. 123, "Accounting for
Stock-Based Compensation", to provide alternative methods of transition for a
voluntary change to the fair value based method of accounting for stock-based
employee compensation. In addition, SFAS No. 148 amends the disclosure
requirements of SFAS No. 123 to require prominent disclosures in both annual and
interim financial statements about the method of accounting for stock- based
employee compensation and the effect of the method used on reported results.
SFAS No. 148 is effective for the Corporation in the third quarter of 2003. The
Corporation does not expect to effect a voluntary change in accounting to the
fair value method, and, accordingly, does not expect the adoption of SFAS No.
148 to have a significant impact on the Corporation's future results of
operations or financial position.

In November 2002, the FASB issued Interpretation No. 45, "Guarantor's Accounting
and Disclosure Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others." Interpretation No. 45 requires a Company, at the time
it issues a guarantee, to recognize an initial liability for the fair value of
obligations assumed under the guarantee and elaborates on existing disclosure
requirements. The initial recognition requirements of Interpretation No. 45 are
effective for guarantees issued or modified after December 31, 2002 and adoption
of disclosure requirements is effective for the Corporation in the second
quarter of 2003. The Corporation does not expect the adoption of Interpretation
No. 45 to have a significant impact on the Corporation's future results of
operations or financial position.

                                                                               9
<PAGE>

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. The adoption of SFAS No. 147 did not have a significant impact
on the financial position or results of operations of the Company.

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.

(8)      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 in 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 December 31, 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
$99,740 that were included in earnings during the nine months ended December 31,
2002. The estimated net amount of the December 31, 2002 existing gains that are
expected to be included into earnings within the next 12 months is approximately
$207,000. During the quarter ending December 31, 2002 the Company recorded a
credit of $7,084, net of $4,583 tax, to other comprehensive income arising from
the change in value of cash flow hedges. During the nine months ending December
31, 2002 the Company recorded a credit of $163,705, net of $105,901 tax, to
other comprehensive income arising from the change in value of cash flow hedges.

                                                                              10
<PAGE>

Item 2

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

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 DECEMBER 31, 2002 AND MARCH 31, 2002

Assets increased to $325.9 million at December 31, 2002 from $307.8 million at
March 31, 2002. Cash and cash equivalents decreased to $15.8 million at December
31, 2002 from $24.0 million at March 31, 2002 as a result of an increase in
non-interest bearing deposits of $2.4 million, an decrease in federal funds sold
of $8.0 million, and a decrease in interest bearing deposits of $2.6 million.
Available-for-sale investment securities increased $4.1 million, of which $3.3
million is due to purchase of securities used for collateralizing sweep accounts
and $0.8 million is the increase in market value. Net loans receivable,
including loans held for sale, increased to $260.1 million at December 31, 2002
from $238.1 million at March 31, 2002. This change in net loans receivable
resulted from increases in commercial loans of $9.0 million, agricultural loans
of $2.6 million, and construction loans of $18.1 million and decreases in
residential loans of $4.9 million and consumer loans of $2.8 million. Accrued
interest receivable increased to $2.2 million at December 31, 2002 from $1.9
million at March 31, 2002. Cash surrender value of bank owned and other
insurance policies increased to $7.2 million at December 31, 2002 from $6.8
million at March 31, 2002. Deposits increased to $209.7 million at December 31,

                                                                              11
<PAGE>

2002 from $196.1 million at March 31, 2002 as a result of decreases in brokered
CD's of $1.5 million, CD's of $0.2 million, and money market accounts of $0.8
million, and increases in savings deposits of $1.1 million, non-interest
checking accounts of $6.9 million, and interest checking accounts of $8.1
million. Federal Home Loan Bank of Seattle (FHLB) advances increased to $81.6
million at December 31, 2002 from $79.7 million at March 31, 2002. Accrued
expenses and other liabilities increased to $4.0 million at December 31, 2002
from $2.6 million at March 31, 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 to $1.7 million at December 31, 2002 from $0.6 million at March
31, 2002. The economic conditions of FirstBank Corporation's operating
environment may cause future additions to non-accrual loans.

FINANCIAL CONDITION AT DECEMBER 31, 2002 AND DECEMBER 31, 2001

Assets increased to $325.9 million at December 31, 2002 from $297.1 million at
December 31, 2001. Cash and cash equivalents decreased to $15.8 million at
December 31, 2002 from $18.8 million at December 31, 2001 as a result of
decreases in non-interest bearing deposits of $1.8 million, federal funds sold
of $1.1 million, and interest bearing deposits of $0.1 million.
Available-for-sale investment securities increased $4.4 million, which is due to
purchasing $3.3 million of securities, $1.1 million of proceeds from sales of
securities, and $0.8 million is the increase in market value. The $1.8 million
decrease in mortgage-backed securities is primarily due to proceeds from
maturities of securities. Net loans receivable, including loans held for sale,
increased to $260.1 million at December 31, 2002 from $231.9 million at December
31, 2001. This change in net loans receivable resulted from increases in
commercial loans of $20.2 million, agricultural loans of $3.0 million, and
construction loans of $17.4 million, and decreases in residential loans of $8.6
million and consumer loans of $3.8 million. Accrued interest receivable remained
at $2.2 million for the years ended December 31, 2002 and 2001. Cash surrender
value of bank owned and other insurance policies increased to $7.2 million at
December 31, 2002 from $6.8 million at December 31, 2001. Deposits increased to
$209.7 million at December 31, 2002 from $178.8 million at December 31, 2001 as
a result of increases in savings deposits of $2.1 million, brokered CD's of $3.1
million, CD's of $5.6 million, non-interest checking accounts $7.9 million, and
interest checking accounts of $13.1 million, and decreases in money market
accounts of $0.9 million. Federal Home Loan Bank of Seattle (FHLB) advances
decreased to $81.6 million at December 31, 2002 from $86.7 million at December
31, 2001. Accrued expenses and other liabilities increased to $4.1 million at
December 31, 2002 from $2.7 million at December 31, 2001. Non accrual loans
increased to $1.7 million at December 31, 2002 from $1.4 million at December 31,
2001.

RESULTS OF OPERATIONS FOR THREE MONTHS ENDED DECEMBER 31, 2002 AND 2001

Net income increased to $718,662 for the three months ended December 31, 2002
from $628,108 for the three months ended December 31, 2001.

Net interest income increased to $3.1 million for the three months ended
December 31, 2002 from $2.6 million for the three months ended December 31,
2001. Total interest income increased to $5.27 million for the three months
ended December 31, 2002 from $4.9 million for the three months ended December
31, 2001. The yield on interest earning assets decreased to 7.08% for the three
months ended December 31, 2002 from 7.62% for the three months ended December
31, 2001, which offsets the return on the $38.9 million increase in average
interest earning assets. The average balance of loans receivable, including
loans held for sale, was $256.1 million in the third quarter of 2002 compared to
$221.0 million in the third quarter of 2001. Interest income from investment
securities increased to $186,000 for the three months ended December 31, 2002
from $149,000 for the three months ended December 31, 2001. The increase is due
to $4.7 million purchases of investment securities and $1.1 million sale of
investment securities since December 31, 2001. Interest income from
mortgage-backed securities decreased to $175,000 for the three months ended
December 31, 2002 from $202,000 for the three months ended December 31, 2001.
The decrease is due to proceeds from maturities of securities causing a
declining balance. Interest expense decreased to $2.2 million for the three
months ended December 31, 2002 from $2.3 million for the same period in 2001.
The decrease in interest expense is due to decreasing weighted average rates on
deposits and FHLB advances. The average FHLB advances balance for the three
months ended December 31, 2002 was $81.4 million, whereas the average FHLB
advances balance as of December 31, 2001 was $73.2 million. The weighted average
rate on FHLB advances for the three months ended December 31, 2002 was 5.03%,
whereas the weighted average rate on FHLB advances as of December 31, 2001 was
5.25%. The average deposit balance for the three months ended December 31, 2002
was $181.3 million, whereas the average deposit balance as of December 31, 2001
was $158.2 million. The weighted average rate on deposits for the three months
ended December 31, 2002 was 2.58%, whereas the weighted average rate on deposits
as of December 31, 2001 was 3.45%.

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

                                                                              12
<PAGE>

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 to
$359,000 for the three months ended December 31, 2002 from $281,000 for the
three months ended December 31, 2001.

Non-interest income remained at $1.1 million for the three months ended December
31, 2002 and 2001.

Non-interest expense increased to $2.9 million for the three months ended
December 31, 2002 from $2.5 million for the three months ended December 31,
2001. The increase in compensation and employee related benefits expense of
$333,000, or 22.4% increase, is primarily due to our 17.1% increase in average
full-time equivalent employees from 117 to 137 at December 31, 2001 and 2002,
respectively. Non-interest expense for the three months ended December 31, 2002
include expenses for the Boise, Idaho and Spokane, Washington loan production
offices, which did not exist for the three months ended December 31, 2001. The
increase in other non-interest expense of $60,000 is primarily the result of
increases in data processing expense of $30,000 and merchant bankcard expense of
$33,000.

Income taxes decreased to an expense of $264,000 for the three months ended
December 31, 2002 from $327,000 for the same time period in 2001, due to a
decrease in the effective tax rates. The effective tax rates for the quarters
ended December 31, 2002 and 2001 were 26.89% and 34.24% respectively. The
decrease in the effective tax rates is due to the permanent tax difference of
bank owned life insurance.

RESULTS OF OPERATIONS FOR NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001

Net income increased to $1,994,980 for the nine months ended December 31, 2002
from $1,802,800 for the nine months ended December 31, 2001.

Net interest income increased to $8.8 million for the nine months ended December
31, 2002 from $7.7 million for the nine months ended December 31, 2001. Total
interest income increased to $15.5 million for the nine months ended December
31, 2002 from $15.4 million for the nine months ended December 31, 2001.
Interest income from loans receivable remained at $13.7 million for the nine
months ended December 31, 2002 and 2001. Interest income from mortgage-backed
securities decreased to $546,000 for the nine months ended December 31, 2002
from $728,000 for the nine months ended December 31, 2001. The decrease in
mortgage-backed securities interest income is due to lower average balance of
securities in the nine months ended December 31, 2002 than December 31, 2001
from security sales of $5.3 million during the first quarter of 2001. Interest
income from investment securities increased to $504,000 for the nine months
ended December 31, 2002 from $452,000 for the nine months ended December 31,
2001. The increase in investment securities interest income is due to purchases
of $3.3 million since August 2002. Interest expense decreased to $6.7 million
for the nine months ended December 31, 2002 from $7.8 million for the same
period in 2001. The decrease resulted from higher average balance on interest
earning deposits with a lower cost and a lower average balance on FHLB advances
with a lower cost. The average balance on interest earning deposits for the nine
months ended December 31, 2002 was $174.7 million, whereas the average balance
on interest earning deposits for the nine months ended December 31, 2001 was
$148.0 million. The weighted average rate on deposits were 2.76% and 4.00% for
the nine month periods ended December 31, 2002 and 2001, respectively. The
average FHLB advances balance for the nine months ended December 31, 2002 was
$81.5 million, whereas the average FHLB advances balance for the nine months
ended December 31, 2001 was $84.1 million. The weighted average rate on advances
were 5.00% and 5.30% for the nine month periods ended December 31, 2002 and
2001, 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 to
$797,000 for the nine months ended December 31, 2002 from $695,000 for the nine
months ended December 31, 2001.

Non-interest income increased to $3.2 million for the nine months ended December
31, 2002 from $3.1 million for the nine months ended December 31, 2001.

Non-interest expense increased to $8.5 million for the nine months ended
December 31, 2002 from $7.3 million for the nine months ended December 31, 2001.
The increase in compensation and employee related benefits expense of $891,000
is a result of additional compensation and employee related benefits from
additional staff. The average number of full time equivalent employees increased

                                                                              13
<PAGE>

17.1% from 117 to 137 at December 31, 2001 and 2002, respectively. The increase
in other non-interest expense of $265,000 is mostly the result of increased
expenses related to data processing, automated teller machine expense, supplies,
insurance, auditing, merchant and visa bank card, and checking account charges.

Income taxes decreased to an expense of $725,000 for the nine months ended
December 31, 2002 to $914,000 for the same time period in 2001, due to a
decrease in the effective tax rates. The effective tax rates for the nine months
ended December 31, 2002 and 2001 were 26.66% and 33.64% respectively. The
decrease in the effective tax rates is due to the permanent tax difference of
bank owned life insurance.

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 December 31, 2002, classified assets of the Company totaled $2.0 million.
Assets classified as loss totaled $12,000 and consisted of overdrawn negotiable
order of withdrawal ("NOW") accounts totaling $2,000 and installment loans of
$10,000. Assets classified as substandard totaled $2.0 million, which consisted
of $725,000 of commercial loans, $309,000 of consumer loans, $915,000 of
residential loans, and a $58,000 REO. The aggregate amounts of the Bank's
classified assets at the dates indicated were as follows:

                                              At December 31,
                                              2002       2001
                                            --------   --------
                                              (In Thousands)
                  Loss                      $     12   $    116
                  Doubtful                        --         --
                  Substandard                  2,007      1,999
                                            --------   --------
                  Total classified assets   $  2,019   $  2,115
                                            ========   ========

                                                                              14
<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>
                                           Nine Months Ending                        Year Ending
                                           December 31, 2002                        March 31, 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         $  64,087    $   3,503         7.29%   $  71,426    $   5,415         7.58%
Commercial loans receivable         106,046        5,438         6.90       87,022        6,658         7.74
Construction loans receivable        16,929        1,179         9.29        6,659          692        10.39
Consumer loans receivable            31,859        1,981         8.29       34,657        2,917         8.42
Agricultural loans receivable        31,307        1,620         6.90       27,748        2,238         8.07
Unearned loan fees and
  discounts and allowance
  for loan losses                    (3,638)          --           --       (2,659)          --           --
                                  ---------    ---------    ---------    ---------    ---------    ---------
Loans receivable, net               246,590       13,721         7.45      224,853       17,920         8.00
Mortgage-backed securities           11,068          546         6.58       14,036          927         6.60
Investment securities                13,847          504         6.76       12,448          611         6.84
Other earning assets                 22,208          724         5.14       17,886          789         4.89
                                  ---------    ---------                 ---------    ---------
Total interest-earning assets       293,713       15,495         7.21      269,223       20,247         7.67
                                               ---------                              ---------

Non-interest-earning assets          21,845                                 19,110
                                  ---------                              ---------
Total assets                      $ 315,558                              $ 288,333
                                  =========                              =========

Interest-earning liabilities:
Passbook, NOW and money
  market accounts                 $  66,665    $     423         0.85    $  53,960    $     916         1.70
Certificates of deposit             107,993        3,191         3.94       98,701        4,747         4.81
                                  ---------    ---------                 ---------    ---------
Total deposits                      174,658        3,614         2.76      152,661        5,663         3.71

Advances from FHLB & other           81,508        3,055         5.00       83,395        4,328         5.19
                                  ---------    ---------                 ---------    ---------
Total interest-bearing
  liabilities                       256,166        6,669         3.16      236,056        9,991         4.23
                                               ---------                              ---------
Total non-interest-bearing
  deposits                           25,499                                 19,752
Non-interest-bearing
  liabilities                         4,959                                  4,467
                                  ---------                              ---------
Total liabilities                   286,624                                260,275
Total stockholders' equity           28,934                                 28,058
                                  ---------                              ---------

Total liabilities and
  total stockholders' equity      $ 315,558                              $ 288,333
                                  =========                              =========

Net interest income                            $   8,826                              $  10,256
                                               =========                              =========

Interest rate spread                                             3.05%                                  3.44%
                                                            =========                              =========

Net interest margin                                 4.18%                                  3.96%
                                               =========                              =========

Ratio of average interest-
  earning assets to average
  interest- bearing liabilities                   114.66%                                114.05%
                                               =========                              =========
</TABLE>

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

                                                                              15
<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 nine month period ended December 31, 2002, the Company originated
loans based upon new production in the amounts of $272.0 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 $1.5 million and $7.7 million for the nine months ended December 31,
2002 and 2001, respectively. Proceeds from the sale of loans provided $109.4
million for the nine months ended December 31, 2002 and $73.2 million for the
nine months ended December 31, 2001.

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 $13.6 million for the nine months
ended December 31, 2002, which were $15.1 million increase in branch deposits
and $1.5 million decrease in brokered deposits. Deposits provided $21.0 million
for the nine months ended December 31, 2001. In addition, the Company maintains
a credit facility with the FHLB of Seattle, which provides for immediately
available advances. FHLB advances totaled $81.6 million at December 31, 2002 and
$86.7 million at December 31, 2001. The Company also maintains additional credit
facilities with Wells Fargo Bank and the Federal Reserve Bank of San Francisco.
The Company did not have any amounts outstanding under these facilities as of
December 31, 2002 and 2001. The Bank also has used other sources of funding when
the need arises; brokered CD's (up to 15% of assets under current Board policy)
and the National CD's markets. Cash provided by advances from FHLB and other
borrowing facilities were $81.8 million for the nine months ended December 31,
2002 and $173.2 million for the nine months ended December 31, 2001. Cash used
for payments on these advances were $79.9 million for the nine months ended
December 31, 2002 and $177.3 million for the nine months ended December 31,
2001.

At December 31, 2002, the Company held cash and cash equivalents of $15.8
million. In addition, at such date $16.6 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
December 31, 2002, the Company had loan commitments totaling $44.2 million,
undisbursed lines of credit totaling $50.7 million, and undisbursed loans in
process totaling $15.9 million. The Company anticipates that it will have
sufficient funds available to meet its current loan origination commitments.
Certificates of deposit that are scheduled to mature in less than one year from
December 31, 2002 totaled $51.2 million. Historically, the Company has been able
to retain a significant amount of its deposits as they mature. In addition,
management of the Company believes that it can adjust the offering rates of
savings certificates to retain deposits in changing interest rate environments.

The Bank is required to maintain specific amounts of capital pursuant to the
FDIC and the State of Washington requirements. As of December 31, 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 8.25%, 11.76%
and 13.01%, 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.

                                                                              16
<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 100 or 200 bp 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 December 31, 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 4.88%, all else being equal. If rates were to sustain an
immediate 100 bp decrease, net interest income would be expected to decline by
3.17%, all else being equal. The following reflects the Company's NII
sensitivity analysis as of December 31, 2002, March 31, 2002 and December 31,
2001 as compared to the 10.00% Board approved policy limit.

         December 31, 2002:        -100 BP         Flat        +200 BP
                                   --------      --------      --------
                                          (Dollars in Thousands)
         Year 1 NII                $ 11,786      $ 12,172      $ 12,766
         NII $  Change             $   (386)           --      $    594
         NII % Change                 -3.17%           --          4.88%


         March 31, 2002:           -100 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%


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


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.

                                                                              17
<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 December 31, 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.

                                                                              18
<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.

                                                                              19
<PAGE>

                                   SIGNATURES

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


                                       FIRSTBANK NW CORP.


DATED: February 13, 2003               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


                                                                              20
<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: February 13, 2003

                                                                              21
<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: February 13, 2003

                                                                              22