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

                                   FORM 10-QSB

                                   (Mark One)

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

                For the quarterly period ended September 30, 2003


       [ ] 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.)

                      1300 16th Avenue, Clarkston, WA 99403
                    ----------------------------------------
                    (Address of Principal Executive Offices)

                                 (509) 295-5100
                ------------------------------------------------
                (Issuer's Telephone Number, Including Area Code)


                       920 Main Street, Lewiston, ID 83501
                 ----------------------------------------------
                 (Former address, if changed since last report)




                      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 2,797,156 shares
outstanding on November 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
           September 30, 2003, March 31, 2003, and September 30, 2002       1
         Consolidated Statements of Income
           For the three months and six months ended September 30, 2003
           and 2002                                                         2
         Consolidated Statements of Cash Flows
           For the three months and six months ended September 30, 2003
           and 2002                                                         3
         Consolidated Statements of Comprehensive Income
           For the three months and six months ended September 30, 2003
           and 2002                                                         4
         Notes to Consolidated Financial Statements                       5 - 11

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                             12 - 20

Item 3.  Controls and Procedures                                            21



PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                                  22
Item 2.  Changes in Securities and Use of Proceeds                          22
Item 3.  Defaults Upon Senior Securities                                    22
Item 4.  Submission of Matters to a Vote of Security Holders                22
Item 5.  Other Information                                                  22
Item 6.  Exhibits and Reports on Form 8-K                                   23

<PAGE>

PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements

                       FirstBank NW Corp. and Subsidiaries
                 Consolidated Statements of Financial Condition

<TABLE>
<CAPTION>
                                                                  September 30,      March 31,      September 30,
                                                                      2003             2003              2002
                                                                  -------------    -------------    -------------
                                                                   (Unaudited)                       (Unaudited)
<S>                                                               <C>              <C>              <C>
ASSETS
Cash and cash equivalents:
  Non-interest bearing deposits                                   $  12,852,496    $   9,378,650    $  14,519,897
  Interest bearing deposits                                          18,973,657          643,154        1,615,634
  Federal funds sold                                                  2,455,517       14,718,971       12,123,323
                                                                  -------------    -------------    -------------
Total cash and cash equivalents                                      34,281,670       24,740,775       28,258,854

Investment securities:
  Available-for-sale                                                 17,250,202       16,812,845       14,056,900
Mortgage-backed securities:
  Held-to-maturity                                                    1,873,055        1,969,138        2,053,624
  Available-for-sale                                                  5,796,131        7,649,066        8,919,044
Loans receivable, net (Note 2)                                      246,709,089      251,804,620      238,062,886
Loans held for sale                                                   9,559,888        5,214,077       11,858,495
Accrued interest receivable                                           2,119,985        1,882,060        2,447,382
Real estate owned                                                       663,507          119,755          130,554
Stock in FHLB, at cost                                                5,882,275        5,730,675        5,542,775
Premises and equipment, net                                           8,772,184        7,210,040        5,476,465
Income taxes receivable                                                 330,582           82,559               --
Cash surrender value of bank owned and other insurance policies       7,496,511        7,272,489        7,083,570
Mortgage servicing assets                                               883,042          825,814        1,017,295
Other assets                                                          1,497,982        1,084,086          907,643
                                                                  -------------    -------------    -------------
TOTAL ASSETS                                                      $ 343,116,103    $ 332,397,999    $ 325,815,577
                                                                  =============    =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Deposits                                                        $ 229,515,006    $ 214,339,997    $ 210,704,989
  Advances from borrowers for taxes and insurance                     1,013,701        1,191,545        1,284,325
  Advances from FHLB (Note 3)                                        76,971,821       81,816,228       80,224,335
  Income taxes payable                                                       --               --           51,316
  Deferred federal and state income taxes                               284,353          453,539          595,257
  Accrued expenses and other liabilities                              3,938,603        4,532,586        3,586,787
                                                                  -------------    -------------    -------------
Total Liabilities                                                   311,723,484      302,333,895      296,447,009
                                                                  -------------    -------------    -------------

  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;
      1,390,492, 1,380,992, and 1,403,592 shares issued;
      1,307,162, 1,278,531 and 1,296,950 shares outstanding              13,942           13,810           14,073
  Additional paid-in-capital                                         10,053,591        9,842,120       10,255,184
  Retained earnings, substantially restricted                        21,297,945       20,213,669       19,103,745
  Unearned ESOP shares                                                 (844,160)        (884,020)        (927,770)
  Deferred compensation                                                 (38,479)        (156,659)        (274,840)
  Accumulated other comprehensive income                                909,780        1,035,184        1,198,176
                                                                  -------------    -------------    -------------
Total Stockholders' Equity                                           31,392,619       30,064,104       29,368,568
                                                                  -------------    -------------    -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $ 343,116,103    $ 332,397,999    $ 325,815,577
                                                                  =============    =============    =============
</TABLE>

           See accompanying notes to consolidated financial statements

                                                                               1
<PAGE>

                       FirstBank NW Corp. and Subsidiaries
                        Consolidated Statements of Income

<TABLE>
<CAPTION>
                                                         Three-months ended           Six-months ended
                                                            September 30,               September 30,
                                                      -------------------------   -------------------------
                                                          2003          2002          2003          2002
                                                      -----------   -----------   -----------   -----------
                                                                           (Unaudited)
<S>                                                   <C>           <C>           <C>           <C>
Interest income:
  Loans receivable                                    $ 4,436,067   $ 4,572,369   $ 8,943,248   $ 9,065,135
  Mortgage-backed securities                              171,702       186,372       347,700       371,237
  Investment securities                                   188,999       160,889       377,056       317,695
  Other interest earning assets                           210,769       233,843       437,434       474,230
                                                      -----------   -----------   -----------   -----------
Total interest income                                   5,007,537     5,153,473    10,105,438    10,228,297
                                                      -----------   -----------   -----------   -----------

Interest expense:
  Deposits                                              1,021,499     1,224,820     2,078,230     2,444,598
  Advances from FHLB and other borrowings                 993,104     1,025,209     1,992,863     2,032,567
                                                      -----------   -----------   -----------   -----------
Total interest expense                                  2,014,603     2,250,029     4,071,093     4,477,165
                                                      -----------   -----------   -----------   -----------

Net interest income                                     2,992,934     2,903,444     6,034,345     5,751,132
Provision for loan losses                                  78,315       228,429       255,576       437,835
                                                      -----------   -----------   -----------   -----------
Net interest income after provision for loan losses     2,914,619     2,675,015     5,778,769     5,313,297
                                                      -----------   -----------   -----------   -----------

Non-interest income:
  Gain on sale of loans                                   590,493       504,805     1,370,344       923,700
  Service fees and other charges                          534,827       543,352     1,111,651     1,050,437
  Commissions and other                                    32,939        34,960        66,546        83,943
                                                      -----------   -----------   -----------   -----------
Total non-interest income                               1,158,259     1,083,117     2,548,541     2,058,080
                                                      -----------   -----------   -----------   -----------

Non-interest expense:
  Compensation and employee related benefits            1,956,241     1,776,717     3,875,885     3,465,365
  Occupancy                                               347,393       298,418       698,191       625,487
  Other                                                   842,880       786,051     1,720,044     1,543,499
                                                      -----------   -----------   -----------   -----------
Total non-interest expense                              3,146,514     2,861,186     6,294,120     5,634,351
                                                      -----------   -----------   -----------   -----------

Income before income tax expense                          926,364       896,946     2,033,190     1,737,026
Income tax expense                                        232,487       251,583       560,083       460,708
                                                      -----------   -----------   -----------   -----------
Net income                                            $   693,877   $   645,363   $ 1,473,107   $ 1,276,318
                                                      ===========   ===========   ===========   ===========

Earnings per share (Note 5):
  Net income per share - basic                        $      0.54   $      0.50   $      1.14   $      0.98
  Net income per share - diluted                      $      0.51   $      0.48   $      1.09   $      0.95
  Cash dividends paid per common share                $      0.15   $      0.12   $      0.30   $      0.24
  Weighted average shares outstanding - basic           1,294,267     1,290,589     1,287,650     1,296,270
  Weighted average shares outstanding - diluted         1,366,142     1,333,078     1,353,745     1,345,830
</TABLE>

           See accompanying notes to consolidated financial statements

                                                                               2

<PAGE>

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

<TABLE>
<CAPTION>
                                                                                                Six-months ended September 30,
                                                                                                ------------------------------
                                                                                                    2003             2002
                                                                                                -------------    -------------
                                                                                                          (Unaudited)
<S>                                                                                             <C>              <C>
Cash flows from operating activities:
  Net income                                                                                    $   1,473,107    $   1,276,318
  Adjustments to reconcile net income to net cash provided by (used in) operating activities:
    Depreciation                                                                                      344,451          314,416
    Amortization (accretion) of securities, net                                                       (80,341)          (8,178)
    Provision for loan losses                                                                         255,577          437,835
    Gain on sale of loans held for sale                                                            (1,370,344         (923,700)
    Proceeds from sale of loans held for sale                                                     103,170,583       63,860,133
    Originations of loans held for sale                                                          (160,146,050)     (56,665,640)
    FHLB stock dividends                                                                             (151,600)        (162,900)
    ESOP compensation expense                                                                         101,268           76,993
    Other (gains) losses, net                                                                           3,625          (20,975)
    Deferred compensation expense                                                                     118,181          118,180
    Deferred income taxes                                                                             (88,061)        (252,369)
 Changes in assets and liabilities:
    Accrued interest receivable and other assets                                                     (802,978)        (583,389)
    Accrued expenses and other liabilities                                                           (593,984)         984,440
    Income taxes receivable                                                                          (248,023)          94,279
                                                                                                -------------    -------------
Net cash provided by (used in) operating activities                                                (4,014,589)       8,545,443
                                                                                                -------------    -------------

Cash flows from investing activities:
  Proceeds from maturities of mortgage-backed securities; held-to-maturity                             92,558           83,826
  Proceeds from maturities of mortgage-backed securities; available-for-sale                        1,695,221          785,084
  Purchase of investment securities; available-for-sale                                              (309,498)        (504,074)
  Other net change in loans receivable                                                              4,130,196      (18,493,851)
  Purchases of premises and equipment                                                              (1,906,595)        (284,111)
  Net increase in cash surrender value of life insurance policies                                    (224,022)        (233,787)
  Proceeds from sale of real estate owned                                                             163,502          315,691
                                                                                                -------------    -------------
Net cash provided by (used in) investing activities                                                 3,641,362      (18,331,222)
                                                                                                -------------    -------------

Cash flows from financing activities:
  Cash paid for dividends                                                                            (388,831)        (317,259)
  Net increase in deposits                                                                         15,175,009       14,582,475
  Advances (repayments) from borrowers for taxes and insurance                                       (177,844)        (111,360)
  Advances from FHLB and other borrowings                                                          93,531,000       41,046,406
  Payments on advances from FHLB and other borrowings                                             (98,375,407)     (40,544,514)
  Proceeds from exercise of stock options                                                             150,195           44,268
  Repurchase of common stock                                                                               --         (667,285)
                                                                                                -------------    -------------
Net cash provided by financing activities                                                           9,914,122       14,032,731
                                                                                                -------------    -------------

Net increase in cash and cash equivalents                                                           9,540,895        4,246,952

Cash and cash equivalents, beginning of period                                                     24,740,775       24,011,902
                                                                                                -------------    -------------
Cash and cash equivalents, end of period                                                        $  34,281,670    $  28,258,854
                                                                                                =============    =============

Supplemental disclosures of cash flow information:
  Cash paid during the period for:
     Interest                                                                                   $   4,045,225    $   4,765,016
     Income taxes                                                                               $     896,167    $     616,966
  Noncash investing and financing activities:
     Unrealized gains (losses) on securities; available-for-sale, net of tax                    $     (69,050)   $     868,049
     Unrealized gain (losses) on cash flow hedge derivative, net of tax                         $     (56,353)   $     156,621
     Loans receivable charged to the allowance for loan losses                                  $      64,061    $     121,615
     Transfer from loans converted to real estate acquired through foreclosure                  $     709,758    $          --
</TABLE>

           See accompanying notes to consolidated financial statements

                                                                               3
<PAGE>

                       FirstBank NW Corp. and Subsidiaries
                 Consolidated Statements of Comprehensive Income

<TABLE>
<CAPTION>
                                                               Three-months ended            Six-months ended
                                                                  September 30,                September 30,
                                                           --------------------------   --------------------------
                                                              2003           2002          2003           2002
                                                           -----------    -----------   -----------    -----------
                                                                                 (Unaudited)

<S>                                                        <C>            <C>           <C>            <C>
Net income                                                 $   693,877    $   645,363   $ 1,473,107    $ 1,276,318
                                                           -----------    -----------   -----------    -----------
Other comprehensive income (loss), net of tax:
      Change in unrealized gains (losses) on securities;
        available-for-sale, net of tax benefit (expense)
        of $209,878, ($236,376), $44,670, and ($561,544)      (324,435)       365,395       (69,050)       868,048
     Change in unrealized derivative gains on cash flow
        hedge, net of tax benefit (expense) of $22,225,
        ($73,567), $36,456, and ($101,319)                     (34,355)       113,721       (56,353)       156,621
                                                           -----------    -----------   -----------    -----------
     Net other comprehensive income (loss)                    (358,790)       479,116      (125,403)     1,024,669
                                                           -----------    -----------   -----------    -----------

Comprehensive income                                       $   335,087    $ 1,124,479   $ 1,347,704    $ 2,300,987
                                                           ===========    ===========   ===========    ===========
</TABLE>

           See accompanying notes to consolidated financial statements

                                                                               4
<PAGE>

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


(1)      BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America (GAAP) for interim financial information and with the instructions to
Form 10-QSB. 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,
2003. In the opinion of management, all adjustments (consisting of normal
recurring adjustments) necessary for a fair presentation have been included. The
results of operations and other data for the six months ended September 30, 2003
are not necessarily indicative of results that may be expected for the entire
fiscal year ending March 31, 2003.

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



(2)      LOANS RECEIVABLE

Loans receivable at September 30, 2003, March 31, 2003, and September 30, 2002
consists of the following:

<TABLE>
<CAPTION>
                                                 September 30,    March 31,    September 30,
                                                     2003           2003           2002
                                                 ------------   ------------   ------------
                                                  (Unaudited)                   (Unaudited)
<S>                                              <C>            <C>            <C>
         Real estate loans:
              Residential                        $ 45,612,190   $ 50,780,992   $ 56,791,175
              Commercial                           71,094,660     68,125,421     59,036,635
              Agricultural                         15,804,709     15,920,524     16,609,572
              Construction                         57,995,458     46,836,132     34,059,928

         Other loans:
              Commercial (non-real estate)         48,531,367     50,602,602     44,053,833
              Other consumer                        6,995,109      7,843,541      8,547,468
              Home equity                          15,152,644     19,924,033     23,639,696
              Agricultural operating               13,748,416     12,999,558     14,359,477
                                                 ------------   ------------   ------------

         Total loans receivable                   274,934,553    273,032,803    257,097,784

         Less:
              Loans in process                     23,245,068     16,676,636     15,166,975
              Unearned loan fees and discounts      1,364,213      1,137,285        984,489
              Allowance for loan losses             3,616,183      3,414,262      2,883,434
                                                 ------------   ------------   ------------

         Loans receivable, net                   $246,709,089   $251,804,620   $238,062,886
                                                 ============   ============   ============


         Loans held for sale                     $  9,559,888   $  5,214,077   $ 11,858,495
                                                 ============   ============   ============
</TABLE>

                                                                               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>
                                                September 30,                March 31,                September 30,
                                                    2003                       2003                       2002
                                           -----------------------    -----------------------    -----------------------
                                                 (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                       $      134        16.59%   $      243        18.60%   $      254        22.09%
         Construction                             831        21.09           660        17.16           495        13.25
         Agricultural                             414        10.75           425        10.59           391        12.04
         Commercial                             2,181        43.51         1,973        43.48         1,628        40.10
         Consumer and other loans                  56         8.06           113        10.17           115        12.52
                                           ----------   ----------    ----------   ----------    ----------   ----------
         Total allowance for loan losses   $    3,616       100.00%   $    3,414       100.00%   $    2,883       100.00%
                                           ==========   ==========    ==========   ==========    ==========   ==========
</TABLE>




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

<TABLE>
<CAPTION>
                                                         Six-Months     Fiscal Year      Six-Months
                                                           Ending          Ending          Ending
                                                        September 30,     March 31,     September 30,
                                                            2003            2003            2002
                                                        ------------    ------------    ------------
                                                         (Unaudited)                     (Unaudited)
<S>                                                     <C>             <C>             <C>
         Balance at beginning of period                 $  3,414,262    $  2,562,757    $  2,562,757
                                                        ------------    ------------    ------------

         Provision for loan losses                           255,576       1,033,068         437,835
                                                        ------------    ------------    ------------

         Charge-offs:
              Residential real estate                         10,000              --              --
              Construction real estate                            --              --              --
              Commercial non-real estate                      19,251          17,699              --
              Consumer and other loans                        34,809         185,773         121,615
                                                        ------------    ------------    ------------
         Total charge offs                                    64,060         203,472         121,615

         Recoveries                                           10,405          21,909           4,457
                                                        ------------    ------------    ------------

         Net charge offs                                      53,655         181,563         117,158
                                                        ------------    ------------    ------------

         Balance at end of year                         $  3,616,183    $  3,414,262    $  2,883,434
                                                        ============    ============    ============

         Net charge-offs to average outstanding loans           0.02%           0.07%           0.05%
</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>
                                                          September 30,     March 31,     September 30,
                                                              2003            2003            2002
                                                          ------------    ------------    ------------
                                                           (Unaudited)                     (Unaudited)
<S>                                                       <C>             <C>             <C>
         Loans accounted for on a nonaccrual basis:
         Real estate loans:
            Residential                                   $    630,040    $    428,659    $    569,292
            Construction                                       163,500              --         163,500
            Agricultural                                       134,882          10,000              --
            Commercial                                         502,884         175,499         782,161
         Commercial non-real estate                            219,416         498,636           2,964
         Consumer and other loans                              114,179         138,490         175,139
         Agricultural operating                                     --              --          53,772
                                                          ------------    ------------    ------------
         Total real estate loans                             1,764,901       1,251,284       1,746,828

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

         Total of nonaccrual and 90 days past
           due loans                                         1,764,901       1,251,284       1,746,828
                                                          ------------    ------------    ------------
         Real estate owned:
            Residential                                        330,826         119,755         130,554
            Commercial                                         332,681              --              --
                                                          ------------    ------------    ------------
         Total real estate owned                               663,507         119,755         130,554
                                                          ------------    ------------    ------------
         Total nonperforming loans                           2,428,408       1,371,039       1,877,382

            Restructured loans                                 284,032         441,691         429,605
                                                          ------------    ------------    ------------

          Total nonperforming assets                      $  2,712,440    $  1,812,730    $  2,306,987
                                                          ============    ============    ============

         Nonaccrual and 90 days or more past due
            loans as a percent of loans receivable, net           0.72%           0.50%           0.73%
         Nonaccrual and 90 days or more past
             due loans as a percent of total assets               0.51%           0.38%           0.54%
         Nonperforming assets as a percent of
             total assets                                         0.79%           0.55%           0.71%
         Total nonperforming assets to total loans                0.99%           0.66%           0.90%
</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 September
30, 2003 and September 30, 2002 were $76,971,821 and $80,224,335 respectively.

                                                                               7

<PAGE>

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

<TABLE>
<CAPTION>
                                                          One Year to        Five Years to
At September 30, 2003:                 Less than One     Less than Five      Less than Ten      Greater than
                                           Year              Years              Years            Ten Years
                                       ------------       ------------       ------------       -----------
<S>                                    <C>                <C>                <C>                <C>
Maturities of advances from FHLB       $ 15,109,600       $ 38,511,804       $ 22,154,449       $ 1,195,968
Range of interest rates                1.15% - 6.62%      4.40% - 5.90%      3.33% - 6.21%          6.66%
Weighted average interest rate              4.80%              5.32%              4.27%             6.66%
Percentage of total advances               19.63%             50.04%             28.78%             1.55%


                                                          One Year to        Five Years to
At September 30, 2002:                 Less than One     Less than Five      Less than Ten      Greater than
                                           Year              Years              Years            Ten Years
                                       ------------       ------------       ------------       -----------

Maturities of advances from FHLB       $  9,436,300       $ 52,371,404       $ 17,170,664       $ 1,245,967
Range of interest rates                2.47% - 6.59%      4.40% - 6.62%      3.33% - 6.21%          6.66%
Weighted average interest rate              4.47%              5.32%              4.52%             6.66%
Percentage of total advances               11.76%             65.28%             21.40%             1.55%
</TABLE>


As of September 30, 2003, there were $30.8 million of advances from Federal Home
Loan Bank that were callable, of which $10.0 million of one to less than five
year advances were callable within one year, $5.8 million of five to less than
ten year advances were callable within one year, and $15.0 million of five to
less than ten year advances were callable within one to less than five years. As
of September 30, 2002, there were $25.8 million of advances from Federal Home
Loan Bank that were callable, of which $10.0 million of one to less than five
year advances were callable within one year, $10.8 million of five to less than
ten year advances were callable within one year, and $5.0 million of five to
less than ten year advances were callable within one to less than five years.

(4)      DIVIDENDS

On July 16, 2003, the Board of Directors declared a cash dividend of $0.15 per
common share to shareholders of record as of August 8, 2003. This dividend was
paid on August 22, 2003. On October 28, 2003, the Board of Directors declared a
cash dividend of $0.15 per common share to shareholders of record as of November
20, 2003. The dividend will be paid on December 5, 2003.

                                                                               8
<PAGE>

(5)      EARNINGS PER SHARE

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

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

<TABLE>
<CAPTION>
                                       For the Three Months Ended               For the Six Months Ended
                                           September 30, 2003                      September 30, 2003
                                   ------------------------------------   ------------------------------------
                                                 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                 $  693,877    1,294,267   $     0.54   $1,473,107    1,287,650   $     1.14
                                                             ==========                             ==========
  Effect of dilutive securities:
      Restricted stock awards              --       71,875                        --       66,095
                                   ----------   ----------                ----------   ----------

  Diluted EPS:
    Income available to common
      Stockholders - assumed
      Conversions                  $  693,877    1,366,142   $     0.51   $1,473,107    1,353,745   $     1.09
                                   ==========   ==========   ==========   ==========   ==========   ==========


                                       For the Three Months Ended               For the Six Months Ended
                                           September 30, 2002                      September 30, 2002
                                   ------------------------------------   ------------------------------------
                                                 Weighted-                              Weighted-
                                                  Average    Per-Share                   Average    Per-Share
                                   Net Income     Shares       Amount     Net Income     Shares       Amount
                                   ----------   ----------   ----------   ----------   ----------   ----------
  Basic EPS:
  Income available to common
      Stockholders                 $  645,363    1,290,589   $     0.50   $1,276,318    1,296,270   $     0.98
                                                             ==========                             ==========
  Effect of dilutive securities:
      Restricted stock awards              --       42,489                        --       49,560
                                   ----------   ----------                ----------   ----------

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

As of September 30, 2003, outstanding options to purchase 138,550 shares of the
Company's common stock were included in the computation of diluted EPS as their
effect would have been antidilutive. As of September 30, 2002, 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.

The following table illustrates the effect on net income if the Bank had applied
the fair value recognition provisions of Financial Accounting Standards Board
Statement No. 123, Accounting for Stock-Based Compensation, to stock-based
employee compensation.

<TABLE>
<CAPTION>
                                                      Three-months ended             Six-months ended
                                                         September 30,                 September 30,
                                                  --------------------------    --------------------------
                                                     2003           2002           2003           2002
                                                  -----------    -----------    -----------    -----------
                                                                        (Unaudited)
<S>                                               <C>            <C>            <C>            <C>
  Net income as previously reported               $   693,877    $   645,363    $ 1,473,107    $ 1,276,318
  Pro forma adjustment for effect of fair value
       accounting for stock options                      (254)        (6,541)          (508)       (13,081)
                                                  -----------    -----------    -----------    -----------
         Pro forma net income                     $   693,623    $   638,822    $ 1,472,599    $ 1,263,237
                                                  ===========    ===========    ===========    ===========
  Pro forma basic earnings per share              $      0.54    $      0.49    $      1.14    $      0.94
                                                  ===========    ===========    ===========    ===========
  Pro forma diluted earnings per share            $      0.51    $      0.48    $      1.09    $      0.94
                                                  ===========    ===========    ===========    ===========
</TABLE>

                                                                               9
<PAGE>

(6)      COMMITMENTS AND CONTINGENCIES

In September of 2003, the Bank signed a contract for $467,000, including tax,
with a general contractor for the construction of a new branch in Hayden, Idaho.
This contracted construction cost is excluding architectural fees, equipment,
furniture, telephone cabling, security/fire alarms, land costs and other
necessary operating items. This project started September of 2003 and is
scheduled to be completed in February of 2004. As of September 30, 2003, the
construction of the branch is 5.38% complete.

In September of 2003, the Bank signed a contract for $125,734, excluding tax,
with a vendor for the purchase of a drive-up, drive-up equipment, security
equipment, depositories, vault, vault door, and safe deposit boxes for the new
branch in Hayden, Idaho. This contract's completion date is February of 2004.

(7)      MERGER

On February 24, 2003, the Company executed an Agreement and Plan of
Reorganization proposing the acquisition of Oregon Trail Financial Corp., Baker
City, Oregon ("Oregon Trail"), the unitary savings and loan holding company for
Pioneer Bank, a Federal Savings Bank ("Pioneer"). Pursuant to the terms of the
Agreement, shareholders of Oregon Trail will be entitled to receive for each
share of Oregon Trail common stock either $22.00 in cash or 1.021 shares of the
Company's common stock (subject to election and allocation procedures as
provided for in the Agreement, which are intended to ensure that in the
aggregate, 46% of the Oregon Trail shares will be exchanged for the Company's
common stock). The merger was completed after the close of business on October
31, 2003. In the merger, the Company issued 1.48 million shares of common stock
and approximately $36.5 million in cash, for a transaction value at announcement
of approximately $74.0 million. The Agreement provides for the merger of Oregon
Trail into the Company and the subsequent merger of Pioneer into the Bank.
Following the completion of the acquisition, the Company is the surviving
holding company with 100% ownership of the Bank and the Bank is the surviving
thrift subsidiary. On October 29, 2003 FirstBank announced that pursuant to the
Merger Agreement, Oregon Trail shareholders were given the opportunity to elect
to receive either cash or stock of FirstBank in exchange for the Oregon Trail
shares they owned. The results of the election process indicated that more
Oregon Trail shareholders elected to receive stock of FirstBank than was
available. Therefore, pursuant to the allocation procedures set forth in the
Merger Agreement, Oregon Trail shareholders who elected to receive stock of
FirstBank will also receive cash as consideration for the Oregon Trail shares
they own. Specifically, each Oregon Trail shareholder who submitted a valid
election for stock consideration will receive 48.27990% stock (multiplied by the
exchange ratio of 1.021 less any fractional share interest of FirstBank common
stock paid at a rate of $28.16 per share) and 51.72010% cash paid at a rate of
$22.00 per share for each share of Oregon Trail common stock they own. The
remaining shares of Oregon Trail common stock for which valid elections were not
submitted will be treated as cash elections. Oregon Trail shareholders who did
not make a valid election will soon receive instructions on the cash exchange
for their Oregon Trail shares.

(8)      EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS

In May 2003, the Financial Accounting Standards Board (FASB) issued SFAS No.
150, "Accounting for Certain Financial Instruments with Characteristics of both
Liabilities and Equity." SFAS No. 150 is effective for financial instruments
entered into or modified after May 31, 2003, and otherwise is effective at the
beginning of the first interim period beginning after June 15, 2003. SFAS No.
150 requires the classification as a liability of any financial instruments with
a mandatory redemption feature, an obligation to repurchase equity shares, or a
conditional obligation based on the issuance of a variable number of its equity
shares. The Company does not have any authorized preferred shares or other
financial instruments with a mandatory redemption feature. The Company believes
that adoption of SFAS No. 150 will not have a material effect on the Company's
consolidated financial statements.

In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities," effective for contracts entered
into or modified after June 30, 2003. This amendment clarifies when a contract
meets the characteristic of a derivative, clarifies when a derivative contains a
financing component and amends certain other existing pronouncements. The
Company believes the adoption of SFAS No. 149 will not have a material effect on
the Company's consolidated financial statements.

(9)      DERIVATIVE FINANCIAL INSTRUMENT DESIGNATED AS HEDGES

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

                                                                              10
<PAGE>

In accordance with 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 September 30, 2003, 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
$109,655 that were included in earnings during the six months ended September
30, 2003. The estimated net amount of the September 30, 2003 existing gains that
are expected to be included into earnings within the next 12 months is
approximately $155,000. During the quarter ending September 30, 2003 the Company
recorded a credit of $34,355, net of $22,225 tax, to other comprehensive income
arising from the change in value of cash flow hedges. During the six months
ending September 30, 2003 the Company recorded a credit of $56,353, net of
$36,456 tax, to other comprehensive income arising from the change in value of
cash flow hedges.

                                                                              11
<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, 2003.

GENERAL

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

The Company's principal business is the business of the Savings Bank. Management
believes that the Company operates under a single business segment. Therefore,
the discussion in the Management's Discussion and Analysis of Financial
Conditions and Results of Operation relates to the Savings Bank and its
operations. In January 1998, the Bank changed its charter to a Washington state
savings bank. At September 30, 2003 the Bank had six depository branch offices
in Idaho and two in Washington.

In April of 2002, the Bank opened a loan production office in Boise, Idaho for
mortgage real estate lending. In August of 2002, the Bank opened a loan
production office in Spokane, Washington for commercial lending. In May of 2003,
the Bank completed remodeling and expanding its Orchards Branch in Lewiston,
Idaho. In July of 2003, the Bank completed the construction of the Clarkston,
Washington building. In September of 2003, the Bank started construction of a
new branch in Hayden, Idaho. The Bank has hired a commercial loan officer and is
in the process of opening a retail deposit facility in Boise, Idaho. The Bank's
management is reviewing the feasibility of opening a branch in Spokane,
Washington.

On February 24, 2003, the Company executed an Agreement and Plan of
Reorganization proposing the acquisition of Oregon Trail Financial Corp., Baker
City, Oregon ("Oregon Trail"), the unitary savings and loan holding company for
Pioneer Bank, a Federal Savings Bank ("Pioneer"). Pursuant to the terms of the
Agreement, shareholders of Oregon Trail will be entitled to receive for each
share of Oregon Trail common stock either $22.00 in cash or 1.021 shares of the
Company's common stock (subject to election and allocation procedures as
provided for in the Agreement, which are intended to ensure that in the
aggregate, 46% of the Oregon Trail shares will be exchanged for the Company's
common stock). The merger was completed after the close of business on October
31, 2003. In the merger, the Company issued 1.48 million shares of common stock
and approximately $36.5 million in cash, for a transaction value at announcement
of approximately $74.0 million. The Agreement provides for the merger of Oregon
Trail into the Company and the subsequent merger of Pioneer into the Bank.
Following the completion of the acquisition, the Company is the surviving
holding company with 100% ownership of the Bank and the Bank is the surviving
thrift subsidiary. On October 29, 2003 FirstBank announced that pursuant to the
Merger Agreement, Oregon Trail shareholders were given the opportunity to elect
to receive either cash or stock of FirstBank in exchange for the Oregon Trail
shares they owned. The results of the election process indicated that more
Oregon Trail shareholders elected to receive stock of FirstBank than was
available. Therefore, pursuant to the allocation procedures set forth in the
Merger Agreement, Oregon Trail shareholders who elected to receive stock of
FirstBank will also receive cash as consideration for the Oregon Trail shares
they own. Specifically, each Oregon Trail shareholder who submitted a valid
election for stock consideration will receive 48.27990% stock (multiplied by the
exchange ratio of 1.021 less any fractional share interest of FirstBank common
stock paid at a rate of $28.16 per share) and 51.72010% cash paid at a rate of
$22.00 per share for each share of Oregon Trail common stock they own. The
remaining shares of Oregon Trail common stock for which valid elections were not
submitted will be treated as cash elections. Oregon Trail shareholders who did
not make a valid election will soon receive instructions on the cash exchange
for their Oregon Trail shares.

                                                                              12
<PAGE>

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, 2003 Form 10-KSB. In particular, the "Summary of Significant
Accounting Policies" describes generally our accounting policies. We believe
that the judgments, estimates, and assumptions used in the preparation of our
Consolidated Financial Statements are appropriate given the factual
circumstances at the time. However, given the sensitivity of our Consolidated
Financial Statements to these critical accounting policies, the use of other
judgments, estimates, and assumptions could result in material differences in
our results of operations or financial condition.

FINANCIAL CONDITION AT SEPTEMBER 30, 2003 AND MARCH 31, 2003

Assets increased to $343.1 million at September 30, 2003 from $332.4 million at
March 31, 2003. Cash and cash equivalents increased to $34.3 million at
September 30, 2003 from $24.7 million at March 31, 2003 as a result of an
increase in non-interest bearing deposits of $3.5 million, a decrease in federal
funds sold of $12.2 million, and an increase in interest bearing deposits of
$18.3 million. Available-for-sale mortgage-backed securities decreased to $5.8
million at September 30, 2003 from $7.6 million at March 31, 2003 due to
principal pay downs. Net loans receivable, including loans held for sale,
decreased to $256.3 million at September 30, 2003 from $257.0 million at March
31, 2003. This change in net loans receivable resulted from increases in
commercial loans of $0.6 million, agricultural loans of $0.6 million,
construction loans of $3.4 million, and residential loans of $0.2 million and a
decrease in consumer loans of $5.5 million. Loans held for sale increased to
$9.6 million at September 30, 2003 from $5.2 million at March 31, 2003.
Currently, the Bank is selling a majority of the residential mortgage loans it
originates. Accrued interest receivable increased to $2.1 million at September
30, 2003 from $1.9 million at March 31, 2003. Real estate owned increased to
$664,000 at September 30, 2003 from $120,000 at March 31, 2003 due to a sale of
one residential property, the acquisition of three residential properties, and
the acquisition of one commercial property. Net premises and equipment increased
to $8.8 million at September 30, 2003 from $7.2 million at March 31, 2003 due to
the remodel and expansion of its Orchards branch in Lewiston, Idaho and
construction of the Clarkston, Washington building. Income taxes receivable
increased $248,000 due to the timing of the tax payments. Cash surrender value
of bank owned and other insurance policies increased to $7.5 million at
September 30, 2003 from $7.3 million at March 31, 2003. Other assets increased
to $1.5 million at September 30, 2003 from $1.1 million at March 31, 2003
primarily due to an increase in prepaid merger costs. Deposits increased to
$229.5 million at September 30, 2003 from $214.3 million at March 31, 2003 as a
result of increases in non-interest checking accounts of $7.8 million, money
market accounts of $3.5 million, interest checking accounts of $1.6 million,
CD's of $1.5 million, brokered CD's of $0.7 million, and savings deposits of
$0.1 million. Advances from borrowers for taxes and insurance decreased to $1.0
million at September 30, 2003 from $1.2 million at March 31, 2003 due to a $9.0
million decrease in the servicing portfolio. Federal Home Loan Bank of Seattle
(FHLB) advances decreased to $77.0 million at September 30, 2003 from $81.8
million at March 31, 2003. Accrued expenses and other liabilities decreased to
$3.9 million at September 30, 2003 from $4.5 million at March 31, 2003. 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 $1.8 million at September 30,
2003 from $1.3 million at March 31, 2003. The economic conditions of FirstBank
Corporation's operating environment may cause future additions to non-accrual
loans.

FINANCIAL CONDITION AT SEPTEMBER 30, 2003 AND SEPTEMBER 30, 2002

Assets increased to $343.1 million at September 30, 2003 from $325.8 million at
September 30, 2002. Cash and cash equivalents increased to $34.3 million at
September 30, 2003 from $28.3 million at September 30, 2002 as a result of an
increase in interest bearing deposits of $17.4 million, a decrease in
non-interest bearing deposits of $1.7 million, and a decrease in federal funds
sold of $9.7 million. Available-for-sale investment securities increased $3.2
million, which is due to purchasing $3.0 million of securities and $0.2 million
is the increase in market value. The $3.3 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 $256.3 million at
September 30, 2003 from $249.9 million at September 30, 2002. This change in net
loans receivable resulted from increases in commercial loans of $15.9 million
and construction loans of $13.0 million, and decreases in residential loans of
$11.0 million, agricultural loans of $1.5 million, and consumer loans of $10.0
million. Loans held for sale decreased to $9.6 million at September 30, 2003
from $11.9 million at September 30, 2002. Currently, the Bank is selling a
majority of the residential mortgage loans it originates. Accrued interest
receivable increased to $2.2 million at September 30, 2003 from $2.4 million at
September 30, 2002. Real estate owned increased to $664,000 at September 30,
2003 from $131,000 at March 31, 2003 due to sales of two residential properties,
the acquisition of three residential properties, and the acquisition of one
commercial property. Net premises and equipment increased to $8.8 million at
September 30, 2003 from $5.5 million at September 30, 2002 due to the remodel
and expansion of its Orchards branch in Lewiston, Idaho and construction of the
Clarkston, Washington building. Income taxes receivable increased $331,000 due
to the timing of the tax payments. The March 31, 2002 overpayment of taxes was
applied through September 30, 2002 and the March 31, 2003 overpayment of taxes
was only applied through June 30, 2003. Cash surrender value of bank owned and

                                                                              13
<PAGE>

other insurance policies increased to $7.5 million at September 30, 2003 from
$7.1 million at September 30, 2002. Mortgage servicing assets decreased to
$883,000 at September 30, 2003 from $1.0 million at September 30, 2002. Mortgage
servicing assets include an impairment of $306,000 and $0 for the periods ending
September 30, 2003 and 2002, respectively. Other assets increased to $1.5
million at September 30, 2003 from $0.9 million at September 30, 2002 due to an
increase in prepaid merger costs. Deposits increased to $229.5 million at
September 30, 2003 from $210.7 million at September 30, 2002 as a result of
increases in savings deposits of $0.9 million, money market accounts of $7.0
million, brokered CD's of $5.2 million, non-interest checking accounts $3.6
million, and interest checking accounts of $3.6 million, and decreases in CD's
of $1.5 million. Advances from borrowers for taxes and insurance decreased to
$1.0 million at September 30, 2003 from $1.3 million at March 31, 2003 due to a
$33.2 million decrease in the servicing portfolio. Federal Home Loan Bank of
Seattle (FHLB) advances decreased to $77.0 million at September 30, 2003 from
$80.2 million at September 30, 2002. Accrued expenses and other liabilities
increased to $3.9 million at September 30, 2003 from $3.6 million at September
30, 2002. Non accrual loans increased to $1.8 million at September 30, 2003 from
$1.7 million at September 30, 2002.

RESULTS OF OPERATIONS FOR THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002

Net income increased to $693,876 for the three months ended September 30, 2003
from $645,363 for the three months ended September 30, 2002.

Net interest income increased to $3.0 million for the three months ended
September 30, 2003 from $2.9 million for the three months ended September 30,
2002. Total interest income decreased to $5.0 million for the three months ended
September 30, 2003 from $5.2 million for the three months ended September 30,
2002. The yield on interest earning assets decreased to 6.59% for the three
months ended September 30, 2003 from 7.22% for the three months ended September
30, 2002, which offsets the return on the $18.9 million increase in average
interest earning assets. Interest income on loans receivable decreased to $4.4
million for the three months ended September 30, 2003 from $4.6 million for the
three months ended September 30, 2002. The average balance of loans receivable,
including loans held for sale, was $264.4 million in the second quarter of 2003
compared to $246.7 million in the second quarter of 2002. The average balance of
mortgage and consumer loans receivable decreased for the three months ended
September 30, 2003 from the three months ended September 30, 2002. The yield on
loans receivable, including loans held for sale, decreased to 6.72% for the
three months ended September 30, 2003 from 7.44% for the three months ended
September 30, 2002. Interest income from mortgage-backed securities decreased to
$172,000 for the three months ended September 30, 2003 from $186,000 for the
three months ended September 30, 2002. The decrease is due to proceeds from
payments on securities causing a declining balance. Interest income from
investment securities increased to $189,000 for the three months ended September
30, 2003 from $161,000 for the three months ended September 30, 2002. The
increase is due to $3.0 million purchases of investment securities since
September 30, 2002. Interest expense decreased to $2.0 million for the three
months ended September 30, 2003 from $2.3 million for the same period in 2002.
The decrease in interest expense is due to decreased weighted average rates on
total interest-bearing liabilities. The average deposit balance for the three
months ended September 30, 2003 was $188.0 million, whereas the average deposit
balance as of September 30, 2002 was $174.2 million. The weighted average rate
on deposits decreased to 3.00% for the three months ended September 30, 2003
from 3.52% for the three months ended September 30, 2002. The weighted average
rate on FHLB advances for the three months ended September 30, 2003 was 4.90%,
whereas the weighted average rate on FHLB advances as of September 30, 2002 was
5.04%.

Provision for loan losses are based upon management's ongoing review and
evaluation of the loan portfolio and consideration of economic conditions, which
may affect the ability of borrowers to repay their loans, on a monthly basis and
by the Board on a regular basis. The following loan loss grading system assists
management in determining the overall risk in the loan portfolio. Individual
loans are reviewed 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 decreased to $78,000
for the three months ended September 30, 2003 from $228,000 for the three months
ended September 30, 2002. This decrease is a result of the change in the loan
portfolio. The total loan portfolio, excluding loans held for sale, decreased
$4.4 million from June 30, 2002 to September 30, 2002 and increased $4.40.6
million from June 30, 2003 to September 30, 2003.

Non-interest income increased to $1.2 million for the three months ended
September 30, 2003 from $1.1 million for the three months ended September 30,
2002. The primary reason for the increase in non-interest income is from the
gain on sale of loans. Currently, the Bank is selling a majority of the
residential mortgage loans it originates.

                                                                              14
<PAGE>

Non-interest expense increased to $3.1 million for the three months ended
September 30, 2003 from $2.9 million for the three months ended September 30,
2002. The increase in compensation and employee related benefits expense of
$180,000, or 10.1% increase, is primarily due to annual salary adjustments,
adding two commercial loan officers, a credit administrator, and one commercial
loan processor, an increase in medical expense, and an increase in commissions
with related pension and taxes expense. The increase in occupancy expense is due
to the increase in additional depreciation from the remodel and expansion of its
Orchards branch in Lewiston, Idaho and construction of the Clarkston, Washington
building.

Income taxes decreased to an expense of $232,000 for the three months ended
September 30, 2003 from $252,000 for the same time period in 2002, due a
decrease in the effective tax rates. The effective tax rates for the quarters
ended September 30, 2003 and 2002 were 25.10% and 28.05% respectively.

RESULTS OF OPERATIONS FOR SIX MONTHS ENDED SEPTEMBER 30, 2003 AND 2002

Net income increased to $1,473,107 for the six months ended September 30, 2003
from $1,276,318 for the six months ended September 30, 2002.

Net interest income increased to $6.0 million for the six months ended September
30, 2003 from $5.8 million for the six months ended September 30, 2002. Total
interest income decreased to $10.1 million for the six months ended September
30, 2003 from $10.2 million for the six months ended September 30, 2002. The
yield on interest earning assets decreased to 6.68% for the six months ended
September 30, 2003 from 7.27% for the six months ended September 30, 2002, which
offsets the return on the $22.0 million increase in average interest earning
assets. Interest income on loans receivable decreased to $8.9 million for the
six months ended September 30, 2003 from $9.1 million for the six months ended
September 30, 2002. The average balance of loans receivable, including loans
held for sale, was $262.8 million in the six months ended September 30, 2003
compared to $241.9 million for the six months ended September 30, 2002. The
yield on loans receivable, including loans held for sale, decreased to 6.81% for
the six months ended September 30, 2003 from 7.53% for the six months ended
September 30, 2002. Interest income from mortgage-backed securities decreased to
$348,000 for the six months ended September 30, 2003 from $371,000 for the six
months ended September 30, 2002. Interest income from investment securities
increased to $377,000 for the six months ended September 30, 2003 from $318,000
for the six months ended September 30, 2002. The increase is due to $3.1 million
purchases of investment securities since September 30, 2002. Interest expense
decreased to $4.1 million for the six months ended September 30, 2003 from $4.5
million for the same period in 2002. The decrease in interest expense is due to
decreased weighted average rates on total interest-bearing liabilities. The
average deposit balance for the six months ended September 30, 2003 was $187.6
million, whereas the average deposit balance as of September 30, 2002 was $171.3
million. The weighted average rate on deposits decreased to 2.21% for the three
months ended September 30, 2003 from 2.85% for the six months ended September
30, 2002. The average FHLB advances balance for the six months ended September
30, 2003 was $80.7 million, whereas the average FHLB advances balance as of
September 30, 2002 was $81.6 million. The weighted average rate on FHLB advances
for the six months ended September 30, 2003 was 4.94%, whereas the weighted
average rate on FHLB advances as of September 30, 2002 was 4.98%.

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 decreased to
$256,000 for the six months ended September 30, 2003 from $438,000 for the six
months ended September 30, 2002. This decrease is a result of the change in the
loan portfolio. The total loan portfolio, excluding loans held for sale,
increased $15.2 from March 31, 2002 to September 30, 2002 and increased $1.9
million from March 31, 2003 to September 30, 2003.

Non-interest income increased to $2.5 million for the six months ended September
30, 2003 from $2.1 million for the six months ended September 30, 2002. The
primary reason for the increase in non-interest income is from the gain on sale
of loans. Currently, the Bank is selling a majority of the residential mortgage
loans it originates.

                                                                              15
<PAGE>

Non-interest expense increased to $6.3 million for the six months ended
September 30, 2003 from $5.6 million for the six months ended September 30,
2002. The increase in compensation and employee related benefits expense of
$411,000, or 11.8% increase, is primarily due to annual salary adjustments,
adding two commercial loan officers, a credit administrator, and one commercial
loan processor, an increase in medical expense, and an increase in commissions
with related pension and taxes expense. The increase in occupancy expense is due
to the increase in additional depreciation from the remodel and expansion of its
Orchards branch in Lewiston, Idaho and construction of the Clarkston, Washington
building. The increase in other non-interest expense of $177,000 is primarily
the result of increases in data processing expense of $100,000 and merchant
bankcard expense of $70,000.

Income taxes increased to an expense of $560,000 for the six months ended
September 30, 2003 from $461,000 for the same time period in 2002, due to the
increase income before income tax expense and an increase in the effective tax
rates. The effective tax rates for the quarters ended September 30, 2003 and
2002 were 27.55% and 26.52% respectively. The decrease in the effective tax
rates is due to the taxable timing difference of life insurance income.

ASSET CLASSIFICATION

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

At September 30, 2003, classified assets of the Company totaled $3.3 million.
Assets classified as loss totaled $184,000 and consisted of consumer loans of
$28,000, commercial non-real estate loans of $152,000, and overdrawn negotiable
order of withdrawal ("NOW") accounts totaling $4,000. Assets classified as
doubtful totaled $18,000 and consisted of residential loans of $13,000 and
consumer loans of $5,000. Assets classified as substandard totaled $3.1 million,
which consisted of $877,000 of commercial loans, $526,000 of commercial non-real
estate loans, $253,000 of consumer loans, $808,000 of residential loans, $15,000
of NOW accounts, and $663,000 REO. The aggregate amounts of the Bank's
classified assets at the dates indicated were as follows:

                                                   At September 30,
                                               -----------------------
                                                  2003         2002
                                               ----------   ----------
                                                    (In Thousands)
         Loss                                  $      184   $       25
         Doubtful                                      18           --
         Substandard                                3,142        1,540
                                               ----------   ----------
         Total classified assets               $    3,344   $    1,565
                                               ==========   ==========

                                                                              16
<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>
                                                   Six Months Ending                          Year Ending
                                                  September 30, 2003                         March 31, 2003
                                        --------------------------------------    --------------------------------------
                                                       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          $   47,295    $    1,689          7.14%   $   55,975    $    4,160          7.43%
     Commercial loans receivable           122,897         3,784          6.17       109,559         7,361          6.77
     Construction loans receivable          33,559         1,328          7.91        19,750         1,717          8.69
     Consumer loans receivable              24,436           995          8.14        31,085         2,558          8.23
     Agricultural loans receivable          30,858           930          6.03        30,894         2,077          6.72
     Unearned loan fees and
        discounts and allowance
        for loan losses                     (4,804)           --            --        (3,814)           --            --
                                        ----------    ----------    ----------    ----------    ----------    ----------
     Loans receivable, net                 254,241         8,726          6.87       243,449        17,873          7.37
     Loans held for sale                     8,607           217          5.26         6,483           360          5.55
     Mortgage-backed securities              8,808           348          7.90        10,832           729          6.73
     Investment securities                  17,146           377          6.12        14,554           692          6.62
     Other earning assets                   21,391           437          4.96        21,540           921          5.03
                                        ----------    ----------                   ----------   ----------
     Total interest-earning assets         310,193        10,105          6.68       296,858        20,575          7.10
                                                      ----------                                ----------

     Non-interest-earning assets            27,531                                    21,880
                                        ----------                                ----------
     Total assets                       $  337,724                                $  318,738
                                        ==========                                ==========

     Interest-earning liabilities:
     Passbook, NOW and money
        market accounts                 $   74,657    $      237          0.63    $   67,522    $      534          0.79
     Certificates of deposit               112,975         1,841          3.26       108,406         4,109          3.79
                                        ----------    ----------                   ----------   ----------
     Total deposits                        187,632         2,078          2.21       175,928         4,643          2.64

     Advances from FHLB & other             80,732         1,993          4.94        82,292         4,067          4.94
                                        ----------    ----------                   ----------   ----------
     Total interest-bearing
         liabilities                       268,364         4,071          3.03       258,220         8,710          3.37
                                                      ----------                                ----------
     Total non-interest-bearing
        deposits                            32,948                                    26,140
     Non-interest-bearing
         liabilities                         5,405                                     5,169
                                        ----------                                ----------
     Total liabilities                     306,717                                   289,529
     Total stockholders' equity             31,007                                    29,209
                                        ----------                                ----------

     Total liabilities and
        total stockholders' equity      $  337,724                                $  318,738
                                        ==========                                ==========

     Net interest income                              $    6,034                                $   11,865
                                                      ==========                                ==========

     Interest rate spread                                                 3.65%                                     3.73%
                                                                    ==========                                ==========

     Net interest margin                                    4.05%                                     4.16%
                                                      ==========                                ==========

     Ratio of average interest-
        earning assets to average
        interest- bearing liabilities                     115.59%                                   114.96%
                                                      ==========                                ==========
</TABLE>

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

                                                                              17
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

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

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

The primary investing activity of the Company is the origination of loans.
During the six month period ended September 30, 2003, the Company originated
loans based upon new production in the amounts of $212.6 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 $1.8 million and $0.9 million for the six months ended September 30,
2003 and 2002, respectively. Proceeds from the sale of loans provided $103.2
million for the six months ended September 30, 2003 and $63.9 million for the
six months ended September 30, 2002.

The primary financing activities of the Company are customer deposits, brokered
deposits, and advances from FHLB. As indicated on the Company's Consolidated
Statement of Cash Flows, deposits provided $15.2 million for the six months
ended September 30, 2003, which were $14.5 million increase in branch deposits
and $0.7 million increase in brokered deposits. In addition, the Company
maintains a credit facility with the FHLB of Seattle, which provides for
immediately available advances. FHLB advances totaled $77.0 million at September
30, 2003 and $80.2 million at September 30, 2002. The Company also maintains
additional credit facilities with Wells Fargo Bank and the Federal Reserve Bank
of San Francisco. The Company did not have any amounts outstanding under these
facilities as of September 30, 2003 and 2002. The Bank also has used other
sources of funding when the need arises; brokered CD's (up to 15% of assets
under current Board policy) and the National CD's markets. Cash provided by
advances from FHLB and other borrowing facilities were $98.4 million for the six
months ended September 30, 2003 and $40.5 million for the six months ended
September 30, 2002. Cash used for payments on these advances were $93.5 million
for the six months ended September 30, 2003 and $41.0 million for the six months
ended September 30, 2002.

At September 30, 2003, the Company held cash and cash equivalents of $34.3
million. In addition, at such date $23.0 million of the Company's investment
securities were classified as available for sale.

In the merger, the Company issued 1.48 million shares of common stock and
approximately $36.5 million in cash, for a transaction value at announcement of
approximately $74.0 million. The Company has a $42.5 million bridge loan
available to provide for the $36.5 million in cash to purchase shares of Oregon
Trail common stock at $22.00 per share and to pay other related merger expenses.
The bridge loan is expected to be outstanding less than one month, at which time
it will be repaid from the proceeds generated from the sale of available for
sale investment securities. The merger was completed after the close of business
on October 31, 2003.

The Company has commitments that have a future impact on the Company's liquidity
position. Since some commitments are expected to expire without being drawn
upon, the total commitment amounts do not represent future cash requirements. At
September 30, 2003, the Company had loan commitments totaling $55.5 million,
undisbursed lines of credit totaling $54.3 million, and undisbursed loans in
process totaling $23.2 million. The Company anticipates that it will have
sufficient funds available to meet its current loan origination commitments.
Certificates of deposit that are scheduled to mature in less than one year from
September 30, 2003 totaled $51.1 million. Historically, the Company has been
able to retain a significant amount of its deposits as they mature. In addition,
management of the Company believes that it can adjust the offering rates of
savings certificates to retain deposits in changing interest rate environments.

The Bank is required to maintain specific amounts of capital pursuant to the
FDIC and the State of Washington requirements. As of September 30, 2003, 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 8.36%,
12.30% and 13.55%, respectively.

                                                                              18
<PAGE>

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.

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 September 30, 2003, 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 8.49%, all else being equal. If rates were to sustain an
immediate 100 bp decrease, net interest income would be expected to decline by
5.03%, all else being equal. The following reflects the Company's NII
sensitivity analysis as of September 30, 2003, March 31, 2003 and September 30,
2002 as compared to the 10.00% Board approved policy limit.

<TABLE>
<CAPTION>
        September 30, 2003:           -100 BP                  Flat                 +200 BP
                                      -------                  ----                 -------
                                                      (Dollars in Thousands)
<S>                                  <C>                     <C>                    <C>
        Year 1 NII                   $ 10,505                $ 11,061               $ 12,000
        NII $ Change                ($    556)                     --               $    939
        NII % Change                    -5.03%                     --                   8.49%


        March 31, 2003:               -100 BP                  Flat                 +200 BP
                                      -------                  ----                 -------
                                                      (Dollars in Thousands)
        Year 1 NII                   $ 11,376                $ 11,856               $ 12,656
        NII $ Change                ($    480)                     --               $    800
        NII % Change                    -4.05%                     --                   6.75%


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

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

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

                                                                              19
<PAGE>

OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS

Contractual obligations at September 30, 2003 consist of the following:

<TABLE>
<CAPTION>
                                                                      One Year to    Three Years to
                                                   Less than One    Less than Three  Less than Five    Greater than
(Dollars in Thousands)                Total             Year             Years            Years         Five Years
                                   ------------     ------------     ------------     ------------     ------------
<S>                                <C>              <C>              <C>              <C>              <C>
Maturities of advances from FHLB   $     76,972     $     15,110     $     29,414     $      9,098     $     23,350
Operating leases future minimum
  rental payments                  $        785     $        164     $        329     $        232     $         60
Construction and equipment
  contractual payments             $        593     $        593     $         --     $         --     $         --
</TABLE>

Other commitments at September 30, 2003 consist of the following:

<TABLE>
<CAPTION>
                                                                      One Year to    Three Years to
                                                   Less than One    Less than Three  Less than Five    Greater than
(Dollars in Thousands)                Total             Year             Years            Years         Five Years
                                   ------------     ------------     ------------     ------------     ------------
<S>                                <C>              <C>              <C>              <C>              <C>
Loan commitments                   $     55,530     $     55,530     $         --     $         --     $         --
Lines of credit                    $     50,940     $     35,445     $      8,541     $      1,430     $      5,524
Standby letters of credit          $      3,377     $      2,926     $        451     $         --     $         --
Loans in progress                  $     23,245     $     23,245     $         --     $         --     $         --
Forward contracts on residential
  sold loans                       $        367     $        367     $         --     $         --     $         --
</TABLE>


The Company has signed several contracts with vendors for its data processing
operations. The terms of the contracts expire in one year or less. The annual
fees are paid at the beginning of the terms or paid monthly based upon usage,
transactions, or number of customers. The data processing, automated teller
machine, merchant bank card, and visa credit card expense, which include these
contracts, was $679,000 for the six months ending September 30, 2003.

The Company has $3.4 million of performance standby letters of credit at
September 30, 2003. The Company records fee income in accordance with Financial
Accounting Standards Board No. 91, Accounting for Nonrefundable Fees and Costs
Associated with Originating or Acquiring Loans and Initial Direct Costs of
Leases, accordingly, a liability related to these guarantees have not been
recorded in accordance with Financial Interpretation No. 45, Guarantor's
Accounting and Disclosure Requirements for Guarantees, including Indirect
Guarantees of Indebtedness of Others.

                                                                              20
<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)-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) 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 as of the
          end of the period covered by this 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 Securities Exchange Act of 1934 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: There was no change in the Registrant's
          internal control over financial reporting during the Registrant's most
          recently completed fiscal quarter that has materially affected, or is
          reasonably likely to materially affect, the Registrant's internal
          control over financial reporting.

                                                                              21
<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

     The Annual Meeting of Stockholders of the Company ("Meeting") was held on
September 4, 2003. The results of the vote on the matters presented at the
Meeting is as follows:

     1.   The FirstBank NW Corp. resolution to approve the merger by the Merger
          Agreement, dated as of February 24, 2003, by and between FirstBank NW
          Corp. and Oregon Trail Financial Corp., including the issuance of
          FirstBank common stock in the merger was approved by stockholders by
          the following vote:
                  For  1,034,684:     Against  7,246;     Abstain  2,500

     2.   The following individuals were elected as directors, each for a
          three-year term:
                                        Voted For            Votes Withheld
          W. Dean Jurgens               1,288,479                 1,918
          Clyde E. Conklin              1,276,979                13,418
          Steven R. Cox                 1,288,479                 1,918

          The terms of Directors William J. Larson, James N. Marker, Robert S.
          Coleman, Sr., and Larry K. Moxley continued after the meeting.

     3.   The FirstBank NW Corp. resolution to appoint Moss-Adams, LLP as
          independent auditors for the Company for the fiscal year ending March
          31, 2004 was approved by stockholders by the following vote:
                  For  1,274,515:     Against  12,862;     Abstain  3,020

Item 5 - Other Information

     None.

                                                                              22
<PAGE>

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)
                  31.1     Certification of Chief Executive Officer of FirstBank
                           NW Corp.
                  31.2     Certification of Chief Financial Officer of FirstBank
                           NW Corp.
                  32.1     Certification of Chief Executive Officer of FirstBank
                           NW Corp. pursuant to Section 906 of the
                           Sarbanes-Oxley Act of 2002
                  32.2     Certification of 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

         Item 7.  Financial Statements, Pro Forma Financial Information and
                  Exhibits: The Company filed a current report on Form 8-K on
                  October 28, 2003 announcing its September 30, 2003 press
                  release.

                                                                              23
<PAGE>

                                   SIGNATURES


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


                                  FIRSTBANK NW CORP.


DATED:  November 14, 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

                                                                              24