First Financial Northwest, Inc. (the “Company”) (NASDAQ GS: FFNW),
the holding company for First Financial Northwest Bank (the
“Bank”), today reported a net loss of $1.1 million, or $0.12
per diluted share, for the quarter ended March 31, 2024,
compared to net income of $1.2 million, or $0.13 per diluted
share, for the quarter ended December 31, 2023, and net income
of $2.1 million, or $0.23 per diluted share, for the quarter
ended March 31, 2023.
“Our first quarter results were impacted by the
purchase of a single premium group annuity to satisfy the Company’s
obligations to current and former employees covered by a legacy
defined benefit plan. The plan was frozen on March 31, 2013,
however the liability continued for all vested participants.
Extinguishing this liability at a cost of $1.2 million was a
strategic move considered to be an appropriate use of capital in
light of the elevated rate environment. We also recognized $767,000
in pretax expenses in the quarter relating to our previously
announced sale to Global Federal Credit Union. We continue to work
with the employees and management of Global on a variety of matters
to facilitate the planned integration of our two institutions,
while the regulatory agencies work through the processing of our
applications,” stated Joseph W. Kiley III, President and CEO.
“Credit quality remained strong, with nonaccrual
loans remaining low at $201,000 relative to our $1.2 billion
total loan portfolio. Our analysis of the allowance for credit
losses was influenced by various factors during the quarter,
including declines in loan balances and shifts in the composition
of the loan portfolio, credit grade changes, and improvements in
the unemployment rate forecast. After careful consideration, our
analysis concluded that a $175,000 recapture of provision for
credit losses was appropriate inclusive of a $125,000 provision for
credit losses on unfunded commitments, due to their increased
balances,” stated Kiley.
“Persistently elevated short term interest rates
and strong competition for deposits continued to place pressure on
deposit rates. As a result, despite an uptick in loan yields during
the quarter, our net interest margin was little changed, increasing
to 2.55% for the current quarter from 2.54% in the quarter ended
December 31, 2023,” concluded Kiley.
Highlights for the quarter ended March 31,
2024:
- Net loans receivable totaled $1.14
billion at March 31, 2024, down $33.0 million from the prior
quarter end.
- Book value per share was $17.46 at
March 31, 2024, compared to $17.61 at December 31, 2023, and
$17.45 at March 31, 2023.
- Incurred a net loss of
$1.1 million for the quarter ended March 31, 2024,
compared to net income of $1.2 million and $2.1 million
for the quarters ended December 31, 2023, and March 31, 2023,
respectively.
- Paid a quarterly cash dividend to
shareholders of $0.13 per share.
- The Bank’s Tier 1 leverage and
total capital ratios were 10.4% and 16.2% at March 31, 2024,
compared to 10.2% and 16.2% at December 31, 2023, and 10.2%
and 15.6% at March 31, 2023, respectively.
- Credit quality remained strong with
nonaccrual loans totaling $201,000, or 0.02% of total loans.
- Recorded a $175,000 recapture of
provision for credit losses in the current quarter, compared to no
provision for credit losses in the prior quarter and a $338,000
provision for credit losses in the comparable quarter in 2023.
Deposits totaled $1.17 billion at
March 31, 2024, compared to $1.19 billion at
December 31, 2023, and $1.23 billion at March 31,
2023. The $27.2 million decrease in deposits at March 31,
2024, compared to December 31, 2023, was due predominantly to
a $44.6 million decrease in brokered deposits, which was
consistent with management’s strategy to reduce these higher cost
deposits, partially offset by a $9.4 million increase in
retail certificates of deposit, a $6.2 million increase in
money market balances, and a $1.5 million increase in
interest-bearing demand deposits.
The following table presents a breakdown of our total deposits
(unaudited):
|
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
ThreeMonthChange |
|
One Year
Change |
Deposits: |
(Dollars in thousands) |
Noninterest-bearing demand |
$ |
100,846 |
|
|
$ |
100,899 |
|
|
$ |
110,780 |
|
|
$ |
(53 |
) |
|
$ |
(9,934 |
) |
Interest-bearing demand |
|
58,489 |
|
|
|
56,968 |
|
|
|
86,183 |
|
|
|
1,521 |
|
|
|
(27,694 |
) |
Savings |
|
19,314 |
|
|
|
18,886 |
|
|
|
21,871 |
|
|
|
428 |
|
|
|
(2,557 |
) |
Money market |
|
535,594 |
|
|
|
529,411 |
|
|
|
483,945 |
|
|
|
6,183 |
|
|
|
51,649 |
|
Certificates of deposit, retail |
|
366,507 |
|
|
|
357,153 |
|
|
|
332,935 |
|
|
|
9,354 |
|
|
|
33,572 |
|
Brokered deposits |
|
86,146 |
|
|
|
130,790 |
|
|
|
191,414 |
|
|
|
(44,644 |
) |
|
|
(105,268 |
) |
Total deposits |
$ |
1,166,896 |
|
|
$ |
1,194,107 |
|
|
$ |
1,227,128 |
|
|
$ |
(27,211 |
) |
|
$ |
(60,232 |
) |
The following tables present an analysis of
total deposits by branch office (unaudited):
March 31, 2024 |
|
Noninterest-bearingdemand |
Interest-bearingdemand |
Savings |
Moneymarket |
Certificatesof deposit,retail |
Brokereddeposits |
Total |
|
(Dollars in thousands) |
King County |
|
|
|
|
|
|
|
Renton |
$ |
34,134 |
|
$ |
17,394 |
|
$ |
12,802 |
|
$ |
263,834 |
|
$ |
249,288 |
|
$ |
- |
|
$ |
577,452 |
|
Landing |
|
3,759 |
|
|
767 |
|
|
98 |
|
|
7,019 |
|
|
9,571 |
|
|
- |
|
|
21,214 |
|
Woodinville |
|
2,137 |
|
|
2,207 |
|
|
1,011 |
|
|
10,707 |
|
|
10,866 |
|
|
- |
|
|
26,928 |
|
Bothell |
|
3,025 |
|
|
947 |
|
|
32 |
|
|
1,835 |
|
|
5,158 |
|
|
- |
|
|
10,997 |
|
Crossroads |
|
12,007 |
|
|
3,320 |
|
|
35 |
|
|
25,107 |
|
|
17,689 |
|
|
- |
|
|
58,158 |
|
Kent |
|
5,875 |
|
|
5,579 |
|
|
6 |
|
|
25,543 |
|
|
7,207 |
|
|
- |
|
|
44,210 |
|
Kirkland |
|
8,804 |
|
|
1,861 |
|
|
155 |
|
|
65,870 |
|
|
2,055 |
|
|
- |
|
|
78,745 |
|
Issaquah |
|
1,435 |
|
|
373 |
|
|
113 |
|
|
2,781 |
|
|
6,053 |
|
|
- |
|
|
10,755 |
|
Total King County |
|
71,176 |
|
|
32,448 |
|
|
14,252 |
|
|
402,696 |
|
|
307,887 |
|
|
- |
|
|
828,459 |
|
Snohomish County |
|
|
|
|
|
|
|
Mill Creek |
|
5,241 |
|
|
2,327 |
|
|
685 |
|
|
12,600 |
|
|
8,426 |
|
|
- |
|
|
29,279 |
|
Edmonds |
|
9,838 |
|
|
9,487 |
|
|
576 |
|
|
29,314 |
|
|
13,054 |
|
|
- |
|
|
62,269 |
|
Clearview |
|
4,802 |
|
|
4,646 |
|
|
1,452 |
|
|
39,865 |
|
|
9,076 |
|
|
- |
|
|
59,841 |
|
Lake Stevens |
|
3,841 |
|
|
4,134 |
|
|
1,165 |
|
|
18,769 |
|
|
14,043 |
|
|
- |
|
|
41,952 |
|
Smokey Point |
|
2,661 |
|
|
4,415 |
|
|
1,167 |
|
|
29,411 |
|
|
10,800 |
|
|
- |
|
|
48,454 |
|
Total Snohomish County |
|
26,383 |
|
|
25,009 |
|
|
5,045 |
|
|
129,959 |
|
|
55,399 |
|
|
- |
|
|
241,795 |
|
Pierce County |
|
|
|
|
|
|
|
University Place |
|
2,034 |
|
|
63 |
|
|
1 |
|
|
1,748 |
|
|
1,487 |
|
|
- |
|
|
5,333 |
|
Gig Harbor |
|
1,253 |
|
|
969 |
|
|
16 |
|
|
1,191 |
|
|
1,734 |
|
|
- |
|
|
5,163 |
|
Total Pierce County |
|
3,287 |
|
|
1,032 |
|
|
17 |
|
|
2,939 |
|
|
3,221 |
|
|
- |
|
|
10,496 |
|
|
|
|
|
|
|
|
|
Brokered deposits |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
86,146 |
|
|
86,146 |
|
|
|
|
|
|
|
|
|
Total deposits |
$ |
100,846 |
|
$ |
58,489 |
|
$ |
19,314 |
|
$ |
535,594 |
|
$ |
366,507 |
|
$ |
86,146 |
|
$ |
1,166,896 |
|
December 31, 2023 |
|
Noninterest-bearingdemand |
Interest-bearingdemand |
Savings |
Moneymarket |
Certificatesof deposit,retail |
Brokereddeposits |
Total |
|
(Dollars in thousands) |
King County |
|
|
|
|
|
|
|
Renton |
$ |
32,707 |
|
$ |
16,280 |
|
$ |
12,637 |
|
$ |
317,003 |
|
$ |
241,983 |
|
$ |
- |
|
$ |
620,610 |
|
Landing |
|
2,789 |
|
|
1,658 |
|
|
104 |
|
|
12,447 |
|
|
9,842 |
|
|
- |
|
|
26,840 |
|
Woodinville |
|
1,909 |
|
|
2,292 |
|
|
1,000 |
|
|
9,491 |
|
|
10,671 |
|
|
- |
|
|
25,363 |
|
Bothell |
|
3,380 |
|
|
840 |
|
|
33 |
|
|
1,892 |
|
|
4,738 |
|
|
- |
|
|
10,883 |
|
Crossroads |
|
11,075 |
|
|
3,873 |
|
|
45 |
|
|
27,564 |
|
|
14,958 |
|
|
- |
|
|
57,515 |
|
Kent |
|
7,267 |
|
|
5,086 |
|
|
4 |
|
|
16,424 |
|
|
7,706 |
|
|
- |
|
|
36,487 |
|
Kirkland |
|
9,341 |
|
|
1,989 |
|
|
137 |
|
|
12,233 |
|
|
2,032 |
|
|
- |
|
|
25,732 |
|
Issaquah |
|
1,646 |
|
|
1,696 |
|
|
57 |
|
|
2,417 |
|
|
6,213 |
|
|
- |
|
|
12,029 |
|
Total King County |
|
70,114 |
|
|
33,714 |
|
|
14,017 |
|
|
399,471 |
|
|
298,143 |
|
|
- |
|
|
815,459 |
|
Snohomish County |
|
|
|
|
|
|
|
Mill Creek |
|
4,985 |
|
|
2,333 |
|
|
850 |
|
|
13,672 |
|
|
8,309 |
|
|
- |
|
|
30,149 |
|
Edmonds |
|
11,455 |
|
|
5,386 |
|
|
460 |
|
|
26,458 |
|
|
14,375 |
|
|
- |
|
|
58,134 |
|
Clearview |
|
4,614 |
|
|
4,964 |
|
|
1,541 |
|
|
17,597 |
|
|
9,243 |
|
|
- |
|
|
37,959 |
|
Lake Stevens |
|
3,849 |
|
|
4,919 |
|
|
940 |
|
|
24,009 |
|
|
12,633 |
|
|
- |
|
|
46,350 |
|
Smokey Point |
|
2,665 |
|
|
4,333 |
|
|
1,060 |
|
|
44,484 |
|
|
11,750 |
|
|
- |
|
|
64,292 |
|
Total Snohomish County |
|
27,568 |
|
|
21,935 |
|
|
4,851 |
|
|
126,220 |
|
|
56,310 |
|
|
- |
|
|
236,884 |
|
Pierce County |
|
|
|
|
|
|
|
University Place |
|
2,205 |
|
|
67 |
|
|
3 |
|
|
2,496 |
|
|
1,172 |
|
|
- |
|
|
5,943 |
|
Gig Harbor |
|
1,012 |
|
|
1,252 |
|
|
15 |
|
|
1,224 |
|
|
1,528 |
|
|
- |
|
|
5,031 |
|
Total Pierce County |
|
3,217 |
|
|
1,319 |
|
|
18 |
|
|
3,720 |
|
|
2,700 |
|
|
- |
|
|
10,974 |
|
|
|
|
|
|
|
|
|
Brokered deposits |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
130,790 |
|
|
130,790 |
|
|
|
|
|
|
|
|
|
Total deposits |
$ |
100,899 |
|
$ |
56,968 |
|
$ |
18,886 |
|
$ |
529,411 |
|
$ |
357,153 |
|
$ |
130,790 |
|
$ |
1,194,107 |
|
Net loans receivable totaled $1.14 billion
at March 31, 2024, compared to $1.18 billion at both
December 31, 2023, and March 31, 2023. During the quarter
ended March 31, 2024, loan repayments outpaced new
originations. The average balance of net loans receivable totaled
$1.16 billion for the quarter ended March 31, 2024,
compared to $1.17 billion for both the quarter ended
December 31, 2023, and March 31, 2023.
The allowance for credit losses (“ACL”)
represented 1.30% of total loans receivable at March 31, 2024,
compared to 1.28% at December 31, 2023, and 1.33% at
March 31, 2023.
Nonaccrual loans totaled $201,000 at
March 31, 2024, compared to $220,000 at December 31,
2023, and $201,000 at March 31, 2023. There was no other real
estate owned (“OREO”) at March 31, 2024, December 31,
2023, or March 31, 2023.
Net interest income totaled $8.9 million
for the quarter ended March 31, 2024, compared to
$9.3 million for the quarter ended December 31, 2023, and
$11.3 million for the quarter ended March 31, 2023. The
decrease in the current quarter was primarily due to lower levels
of interest-earning assets and interest-bearing liabilities
compared to the quarter ended December 31, 2023.
Total interest income was $19.6 million for
the quarter ended March 31, 2024, compared to
$20.3 million for the quarter ended December 31, 2023,
and $18.5 million for the quarter ended March 31, 2023,
with average interest-earning asset balances declining by $40.6
million and $11.6 million, respectively, compared to the prior
periods. Yield on loans increased to 5.88% during the recent
quarter, compared to 5.83% and 5.56% for the quarters ended
December 31, 2023, and March 31, 2023, respectively.
Yield on investments was unchanged at 4.11% for the current
quarter, and the quarter ended December 31, 2023, an increase
from 3.88% for the quarter ended March 31, 2023.
Total interest expense was $10.7 million
for the quarter ended March 31, 2024, compared to
$11.0 million for the quarter ended December 31, 2023,
and $7.2 million for the quarter ended March 31, 2023.
The decline from the quarter ended December 31, 2023, was due
primarily to lower levels of deposits, particularly the managed
decrease in brokered deposits, offset slightly by an increase in
the cost of interest-bearing liabilities. The average cost of
interest-bearing deposits was 3.69% for the quarter ended
March 31, 2024, compared to 3.62% and 2.41% for the quarters
ended December 31, 2023 and March 31, 2023, respectively.
Advances from the FHLB totaled $115.0 million at
March 31, 2024, down from $125.0 million at
December 31, 2023 and $160.0 million at March 31,
2023. At March 31, 2024, all $115.0 million of our FHLB
advances were tied to cash flow hedge agreements where the Bank
pays a fixed rate and receives a variable rate in return to assist
in the Bank’s interest rate risk management efforts. These cash
flow hedge agreements had a weighted average remaining term of
32.6 months and a weighted average fixed interest rate of
1.87% as of March 31, 2024. The average cost of borrowings was
2.65% for the quarter ended March 31, 2024, compared to 2.40%
and 2.69% for the quarters ended December 31, 2023, and
March 31, 2023, respectively.
Net interest margin was 2.55% for the quarter
ended March 31, 2024, up slightly from 2.54% for the quarter
ended December 31, 2023, but down from 3.22% for the quarter
ended March 31, 2023. The slight increase compared to the
quarter ended December 31, 2023, was due primarily to the
higher level of interest-earning assets. The average yield on
interest-earning assets increased six basis points to 5.62% during
the first quarter of 2024, from 5.56% during the quarter ended
December 31, 2023, and increased 33 basis points from 5.29% during
the quarter ended March 31, 2023. The average cost of
interest-bearing liabilities increased eight basis points to 3.58%
during the quarter, from 3.50% during the quarter ended
December 31, 2023, and increased 114 basis points from 2.44%
during the quarter ended March 31, 2023. The net interest
margin for the month of March 2024 was 2.50%.
Noninterest income for the quarter ended
March 31, 2024, totaled $787,000, up from $633,000 and
$665,000 for the quarters ended December 31, 2023, and
March 31, 2023, respectively. The increase compared to the
quarter ended December 31, 2023, was primarily due to a
$96,000 increase in BOLI income, a $38,000 increase in other
noninterest income related to our fintech focused venture capital
investment and a $35,000 increase in wealth management revenue,
partially offset by a combined decrease of $15,000 in lower deposit
and loan related fees. The increase in the quarter ended
March 31, 2024, compared to the quarter ended March 31, 2023,
primarily reflects an increase in other noninterest income, wealth
management revenue and BOLI income, partially offset by lower loan
and deposit related fees.
Noninterest expense totaled $11.3 million
for the quarter ended March 31, 2024, compared to
$8.4 million for the quarter ended December 31, 2023, and
$9.0 million for the quarter ended March 31, 2023. The
increase compared to the quarter ended December 31, 2023, was
primarily due to a $1.9 million increase in salaries and
employee benefits and a $869,000 increase in professional fees. The
increase in salaries and employee benefits consisted primarily of a
$1.2 million expense related to the defined benefit plan
liability, an incentive accrual of $151,000 compared to a reversal
of $250,000 in the previous quarter ended December 31, 2023, a
$201,000 increase in salaries due to annual salary increases taking
effect January 1, 2024, and $101,000 related to the seasonal
increase in payroll taxes. The increase in professional fees
consisted primarily of $767,000 in pretax expenses related to the
pending sale of the Bank’s assets to Global Federal Credit Union.
The increase compared to the quarter ended March 31, 2023, was
primarily due to the purchase of a single premium group annuity to
satisfy the defined benefit liability and transaction-related
expenses mentioned previously, along with increases in data
processing fees, occupancy and equipment expenses and regulatory
assessments.
First Financial Northwest, Inc. is the parent
company of First Financial Northwest Bank; an FDIC insured
Washington State-chartered commercial bank headquartered in Renton,
Washington, serving the Puget Sound Region through 15 full-service
banking offices. For additional information about us, please visit
our website at ffnwb.com and click on the “Investor Relations” link
at the bottom of the page.
Forward-looking statements:When used in this
press release and in other documents filed with or furnished to the
Securities and Exchange Commission (the “SEC”), in press releases
or other public stockholder communications, or in oral statements
made with the approval of an authorized executive officer, the
words or phrases “believe,” “will,” “will likely result,” “are
expected to,” “will continue,” “is anticipated,” “estimate,”
“project,” “plans,” or similar expressions are intended to identify
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are not historical facts but instead represent
management’s current expectations and forecasts regarding future
events many of which are inherently uncertain and outside of our
control. Forward-looking statements include statements with respect
to our beliefs, plans, objectives, goals, expectations, assumptions
and statements about, among other things, our pending transaction
with Global Federal Credit Union (“Global”) whereby Global,
pursuant to the definitive purchase and assumption agreement (the
“P&A Agreement”), will acquire substantially all of the assets
and assume substantially all of the liabilities of the Bank,
expectations of the business environment in which we operate,
projections of future performance or financial items, perceived
opportunities in the market, potential future credit experience,
and statements regarding our mission and vision. These
forward-looking statements are based on current management
expectations and may, therefore, involve risks and uncertainties.
Actual results may differ, possibly materially from those currently
expected or projected in these forward-looking statements made by,
or on behalf of, us and could negatively affect our operating and
stock performance. Factors that could cause our actual results to
differ materially from those described in the forward-looking
statements, include, but are not limited to, the following: the
occurrence of any event, change or other circumstances that could
give rise to the right of one or all of the parties to terminate
the P&A Agreement; delays in completing the P&A Agreement;
the failure to obtain necessary regulatory approvals and
shareholder approvals or to satisfy any of the other conditions to
the Global transaction, including the P&A Agreement, on a
timely basis or at all; delays or other circumstances arising from
the dissolution of the Bank and the Company following completion of
the P&A Agreement; diversion of management’s attention from
ongoing business operations and opportunities during the pending
Global transaction; potential adverse reactions or changes to
business or employee relationships, including those resulting from
the announcement of the Global transaction; potential adverse
impacts to economic conditions in our local market areas, other
markets where the Company has lending relationships, or other
aspects of the Company’s business operations or financial markets,
including, without limitation, as a result of employment levels,
labor shortages and the effects of inflation, a potential recession
or slowed economic growth; changes in the interest rate
environment, including the recent increases in the Federal Reserve
benchmark rate and duration at which such increased interest rate
levels are maintained, which could adversely affect our revenues
and expenses, the value of assets and obligations, and the
availability and cost of capital and liquidity; the impact of
continuing high inflation and the current and future monetary
policies of the Federal Reserve in response thereto; the effects of
any federal government shutdown; increased competitive pressures;
legislative and regulatory changes; the impact of bank failures or
adverse developments at other banks and related negative press
about the banking industry in general on investor and depositor
sentiment; disruptions, security breaches, or other adverse events,
failures or interruptions in, or attacks on, our information
technology systems or on the third-party vendors who perform
several of our critical processing functions; effects of critical
accounting policies and judgments, including the use of estimates
in determining the fair value of certain of our assets, which
estimates may prove to be incorrect and result in significant
declines in valuation; the effects of climate change, severe
weather events, natural disasters, pandemics, epidemics and other
public health crises, acts of war or terrorism, and other external
events on our business; and other factors described in the
Company’s latest Annual Report on Form 10-K and Quarterly Reports
on Form 10-Q and other reports filed with or furnished to the
Securities and Exchange Commission – that are available on our
website at www.ffnwb.com and on the SEC’s website at
www.sec.gov.
Any of the forward-looking statements that we
make in this Press Release and in the other public statements are
based upon management’s beliefs and assumptions at the time they
are made and may turn out to be wrong because of the inaccurate
assumptions we might make, because of the factors illustrated above
or because of other factors that we cannot foresee. Therefore,
these factors should be considered in evaluating the
forward-looking statements, and undue reliance should not be placed
on such statements. We do not undertake and specifically disclaim
any obligation to revise any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.
|
FIRST FINANCIAL NORTHWEST, INC. AND
SUBSIDIARIESConsolidated Balance Sheets(Dollars in
thousands)(Unaudited) |
|
Assets |
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
ThreeMonthChange |
|
OneYearChange |
|
|
|
|
|
|
|
|
|
|
Cash on hand and in banks |
$ |
8,789 |
|
|
$ |
8,391 |
|
|
$ |
9,618 |
|
|
4.7 |
% |
|
(8.6 |
)% |
Interest-earning deposits with
banks |
|
40,272 |
|
|
|
22,138 |
|
|
|
70,998 |
|
|
81.9 |
|
|
(43.3 |
) |
Investments
available-for-sale, at fair value |
|
180,376 |
|
|
|
207,915 |
|
|
|
214,948 |
|
|
(13.2 |
) |
|
(16.1 |
) |
Investments held-to-maturity,
at amortized cost |
|
2,451 |
|
|
|
2,456 |
|
|
|
2,439 |
|
|
(0.2 |
) |
|
0.5 |
|
Loans receivable, net of
allowance of $14,996, $15,306, and $16,028 respectively |
|
1,142,909 |
|
|
|
1,175,925 |
|
|
|
1,184,750 |
|
|
(2.8 |
) |
|
(3.5 |
) |
Federal Home Loan Bank
("FHLB") stock, at cost |
|
6,078 |
|
|
|
6,527 |
|
|
|
8,203 |
|
|
(6.9 |
) |
|
(25.9 |
) |
Accrued interest
receivable |
|
7,176 |
|
|
|
7,359 |
|
|
|
7,011 |
|
|
(2.5 |
) |
|
2.4 |
|
Deferred tax assets, net |
|
2,399 |
|
|
|
2,648 |
|
|
|
2,990 |
|
|
(9.4 |
) |
|
(19.8 |
) |
Premises and equipment,
net |
|
19,323 |
|
|
|
19,667 |
|
|
|
20,732 |
|
|
(1.7 |
) |
|
(6.8 |
) |
Bank owned life insurance
("BOLI"), net |
|
38,058 |
|
|
|
37,653 |
|
|
|
36,647 |
|
|
1.1 |
|
|
3.9 |
|
Prepaid expenses and other
assets |
|
16,827 |
|
|
|
10,478 |
|
|
|
11,336 |
|
|
60.6 |
|
|
48.4 |
|
Right of use asset ("ROU"),
net |
|
2,415 |
|
|
|
2,617 |
|
|
|
3,194 |
|
|
(7.7 |
) |
|
(24.4 |
) |
Goodwill |
|
889 |
|
|
|
889 |
|
|
|
889 |
|
|
0.0 |
|
|
0.0 |
|
Core deposit intangible,
net |
|
388 |
|
|
|
419 |
|
|
|
516 |
|
|
(7.4 |
) |
|
(24.8 |
) |
Total assets |
$ |
1,468,350 |
|
|
$ |
1,505,082 |
|
|
$ |
1,574,271 |
|
|
(2.4 |
) |
|
(6.7 |
) |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
100,846 |
|
|
$ |
100,899 |
|
|
$ |
110,780 |
|
|
(0.1 |
) |
|
(9.0 |
) |
Interest-bearing deposits |
|
1,066,050 |
|
|
|
1,093,208 |
|
|
|
1,116,348 |
|
|
(2.5 |
) |
|
(4.5 |
) |
Total deposits |
|
1,166,896 |
|
|
|
1,194,107 |
|
|
|
1,227,128 |
|
|
(2.3 |
) |
|
(4.9 |
) |
Advances from the FHLB |
|
115,000 |
|
|
|
125,000 |
|
|
|
160,000 |
|
|
(8.0 |
) |
|
(28.1 |
) |
Advance payments from
borrowers for taxes and insurance |
|
5,649 |
|
|
|
2,952 |
|
|
|
5,447 |
|
|
91.4 |
|
|
3.7 |
|
Lease liability, net |
|
2,598 |
|
|
|
2,806 |
|
|
|
3,374 |
|
|
(7.4 |
) |
|
(23.0 |
) |
Accrued interest payable |
|
1,134 |
|
|
|
2,739 |
|
|
|
749 |
|
|
(58.6 |
) |
|
51.4 |
|
Other liabilities |
|
16,890 |
|
|
|
15,818 |
|
|
|
17,928 |
|
|
6.8 |
|
|
(5.8 |
) |
Total liabilities |
|
1,308,167 |
|
|
|
1,343,422 |
|
|
|
1,414,626 |
|
|
(2.6 |
) |
|
(7.5 |
) |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par
value; authorized 10,000,000 shares; no shares issued or
outstanding |
|
- |
|
|
|
- |
|
|
|
- |
|
|
n/a |
|
n/a |
Common stock, $0.01 par value;
authorized 90,000,000 shares; issued and outstanding 9,174,425
shares at March 31 2024, 9,179,510 shares at December 31 2023,
and 9,148,086 shares at March 31 2023 |
|
92 |
|
|
|
92 |
|
|
|
92 |
|
|
0.0 |
|
|
0.0 |
|
Additional paid-in
capital |
|
72,871 |
|
|
|
73,035 |
|
|
|
72,445 |
|
|
(0.2 |
) |
|
0.6 |
|
Retained earnings |
|
93,938 |
|
|
|
96,206 |
|
|
|
95,597 |
|
|
(2.4 |
) |
|
(1.7 |
) |
Accumulated other
comprehensive loss, net of tax |
|
(6,718 |
) |
|
|
(7,673 |
) |
|
|
(8,489 |
) |
|
(12.4 |
) |
|
(20.9 |
) |
Total stockholders'
equity |
|
160,183 |
|
|
|
161,660 |
|
|
|
159,645 |
|
|
(0.9 |
) |
|
0.3 |
|
Total liabilities and
stockholders' equity |
$ |
1,468,350 |
|
|
$ |
1,505,082 |
|
|
$ |
1,574,271 |
|
|
(2.4 |
)% |
|
(6.7 |
)% |
|
FIRST FINANCIAL NORTHWEST, INC. AND
SUBSIDIARIESConsolidated Income Statements(Dollars in
thousands, except per share data)(Unaudited) |
|
|
Quarter Ended |
|
|
|
|
|
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
ThreeMonthChange |
|
OneYearChange |
Interest income |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
16,966 |
|
|
$ |
17,143 |
|
|
$ |
16,029 |
|
|
(1.0 |
)% |
|
5.8 |
% |
Investments |
|
2,064 |
|
|
|
2,143 |
|
|
|
2,105 |
|
|
(3.7 |
) |
|
(1.9 |
) |
Interest-earning deposits with banks |
|
486 |
|
|
|
880 |
|
|
|
236 |
|
|
(44.8 |
) |
|
105.9 |
|
Dividends on FHLB Stock |
|
127 |
|
|
|
121 |
|
|
|
130 |
|
|
5.0 |
|
|
(2.3 |
) |
Total interest income |
|
19,643 |
|
|
|
20,287 |
|
|
|
18,500 |
|
|
(3.2 |
) |
|
6.2 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
Deposits |
|
9,916 |
|
|
|
10,281 |
|
|
|
6,332 |
|
|
(3.6 |
) |
|
56.6 |
|
FHLB advances and other borrowings |
|
827 |
|
|
|
731 |
|
|
|
912 |
|
|
13.1 |
|
|
(9.3 |
) |
Total interest expense |
|
10,743 |
|
|
|
11,012 |
|
|
|
7,244 |
|
|
(2.4 |
) |
|
48.3 |
|
Net interest income |
|
8,900 |
|
|
|
9,275 |
|
|
|
11,256 |
|
|
(4.0 |
) |
|
(20.9 |
) |
(Recapture of provision)
provision for credit losses |
|
(175 |
) |
|
|
- |
|
|
|
338 |
|
|
n/a |
|
(151.8 |
) |
Net interest income after
(recapture of provision) provision for credit losses |
|
9,075 |
|
|
|
9,275 |
|
|
|
10,918 |
|
|
(2.2 |
) |
|
(16.9 |
) |
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
|
|
|
|
|
BOLI income |
|
351 |
|
|
|
255 |
|
|
|
308 |
|
|
37.6 |
|
|
14.0 |
|
Wealth management revenue |
|
95 |
|
|
|
60 |
|
|
|
45 |
|
|
58.3 |
|
|
111.1 |
|
Deposit related fees |
|
221 |
|
|
|
234 |
|
|
|
223 |
|
|
(5.6 |
) |
|
(0.9 |
) |
Loan related fees |
|
58 |
|
|
|
60 |
|
|
|
91 |
|
|
(3.3 |
) |
|
(36.3 |
) |
Other |
|
62 |
|
|
|
24 |
|
|
|
(2 |
) |
|
158.3 |
|
|
NM |
Total noninterest income |
|
787 |
|
|
|
633 |
|
|
|
665 |
|
|
24.3 |
|
|
18.3 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
6,763 |
|
|
|
4,822 |
|
|
|
5,461 |
|
|
40.3 |
|
|
23.8 |
|
Occupancy and equipment |
|
1,226 |
|
|
|
1,231 |
|
|
|
1,165 |
|
|
(0.4 |
) |
|
5.2 |
|
Professional fees |
|
1,300 |
|
|
|
431 |
|
|
|
417 |
|
|
201.6 |
|
|
211.8 |
|
Data processing |
|
786 |
|
|
|
718 |
|
|
|
686 |
|
|
9.5 |
|
|
14.6 |
|
Regulatory assessments |
|
166 |
|
|
|
196 |
|
|
|
101 |
|
|
(15.3 |
) |
|
64.4 |
|
Insurance and bond premiums |
|
132 |
|
|
|
113 |
|
|
|
130 |
|
|
16.8 |
|
|
1.5 |
|
Marketing |
|
64 |
|
|
|
70 |
|
|
|
77 |
|
|
(8.6 |
) |
|
(16.9 |
) |
Other general and administrative |
|
894 |
|
|
|
858 |
|
|
|
918 |
|
|
4.2 |
|
|
(2.6 |
) |
Total noninterest expense |
|
11,331 |
|
|
|
8,439 |
|
|
|
8,955 |
|
|
34.3 |
|
|
26.5 |
|
(Loss) income before federal
income tax (benefit) provision |
|
(1,469 |
) |
|
|
1,469 |
|
|
|
2,628 |
|
|
(200.0 |
) |
|
(155.9 |
) |
Federal income tax (benefit)
provision |
|
(393 |
) |
|
|
275 |
|
|
|
506 |
|
|
(242.9 |
) |
|
(177.7 |
) |
Net (loss) income |
$ |
(1,076 |
) |
|
$ |
1,194 |
|
|
$ |
2,122 |
|
|
(190.1 |
)% |
|
(150.7 |
)% |
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings per
share |
$ |
(0.12 |
) |
|
$ |
0.13 |
|
|
$ |
0.23 |
|
|
|
|
|
Diluted (loss) earnings per
share |
$ |
(0.12 |
) |
|
$ |
0.13 |
|
|
$ |
0.23 |
|
|
|
|
|
Weighted average number of
common shares outstanding |
|
9,159,339 |
|
|
|
9,151,892 |
|
|
|
9,104,371 |
|
|
|
|
|
Weighted average number of
diluted shares outstanding |
|
9,159,339 |
|
|
|
9,176,724 |
|
|
|
9,173,276 |
|
|
|
|
|
The following table presents a breakdown of the loan portfolio
(unaudited):
|
March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
(Dollars in thousands) |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
Residential: |
|
|
|
|
|
|
|
|
|
|
|
Multifamily |
$ |
134,386 |
|
|
11.6 |
% |
|
$ |
138,149 |
|
|
11.6 |
% |
|
$ |
143,332 |
|
|
11.9 |
% |
Total multifamily residential |
|
134,386 |
|
|
11.6 |
|
|
|
138,149 |
|
|
11.6 |
|
|
|
143,332 |
|
|
11.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-residential: |
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
118,958 |
|
|
10.4 |
|
|
|
124,172 |
|
|
10.4 |
|
|
|
130,788 |
|
|
11.0 |
|
Office |
|
72,303 |
|
|
6.2 |
|
|
|
72,778 |
|
|
6.1 |
|
|
|
79,793 |
|
|
6.6 |
|
Hotel / motel |
|
57,263 |
|
|
4.9 |
|
|
|
63,597 |
|
|
5.3 |
|
|
|
67,165 |
|
|
5.6 |
|
Storage |
|
32,834 |
|
|
2.8 |
|
|
|
33,033 |
|
|
2.8 |
|
|
|
33,604 |
|
|
2.8 |
|
Mobile home park |
|
23,351 |
|
|
2.0 |
|
|
|
21,701 |
|
|
1.8 |
|
|
|
21,992 |
|
|
1.8 |
|
Warehouse |
|
19,086 |
|
|
1.6 |
|
|
|
19,218 |
|
|
1.6 |
|
|
|
19,780 |
|
|
1.6 |
|
Nursing Home |
|
11,538 |
|
|
1.0 |
|
|
|
11,610 |
|
|
1.0 |
|
|
|
12,260 |
|
|
1.0 |
|
Other non-residential |
|
32,041 |
|
|
2.8 |
|
|
|
31,750 |
|
|
2.6 |
|
|
|
43,523 |
|
|
3.7 |
|
Total non-residential |
|
367,374 |
|
|
31.7 |
|
|
|
377,859 |
|
|
31.6 |
|
|
|
408,905 |
|
|
34.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction/land: |
|
|
|
|
|
|
|
|
|
|
|
One-to-four family residential |
|
43,411 |
|
|
3.7 |
|
|
|
47,149 |
|
|
4.0 |
|
|
|
53,948 |
|
|
4.5 |
|
Multifamily |
|
5,266 |
|
|
0.5 |
|
|
|
4,004 |
|
|
0.3 |
|
|
|
(131 |
) |
|
0.0 |
|
Commercial |
|
- |
|
|
0.0 |
|
|
|
- |
|
|
0.0 |
|
|
|
- |
|
|
0.0 |
|
Land development |
|
8,330 |
|
|
0.7 |
|
|
|
9,771 |
|
|
0.8 |
|
|
|
9,786 |
|
|
0.8 |
|
Total construction/land |
|
57,007 |
|
|
4.9 |
|
|
|
60,924 |
|
|
5.1 |
|
|
|
63,603 |
|
|
5.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential: |
|
|
|
|
|
|
|
|
|
|
|
Permanent owner occupied |
|
283,398 |
|
|
24.5 |
|
|
|
284,471 |
|
|
23.9 |
|
|
|
242,477 |
|
|
20.2 |
|
Permanent non-owner occupied |
|
223,302 |
|
|
19.3 |
|
|
|
228,752 |
|
|
19.2 |
|
|
|
240,183 |
|
|
20.0 |
|
Total one-to-four family residential |
|
506,700 |
|
|
43.8 |
|
|
|
513,223 |
|
|
43.1 |
|
|
|
482,660 |
|
|
40.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Business: |
|
|
|
|
|
|
|
|
|
|
|
Aircraft |
|
1,907 |
|
|
0.2 |
|
|
|
1,945 |
|
|
0.1 |
|
|
|
2,052 |
|
|
0.1 |
|
Small Business Administration ("SBA") |
|
1,778 |
|
|
0.2 |
|
|
|
1,794 |
|
|
0.3 |
|
|
|
499 |
|
|
0.1 |
|
Paycheck Protection Plan ("PPP") |
|
395 |
|
|
0.0 |
|
|
|
473 |
|
|
0.0 |
|
|
|
707 |
|
|
0.1 |
|
Other business |
|
16,344 |
|
|
1.4 |
|
|
|
24,869 |
|
|
2.1 |
|
|
|
28,401 |
|
|
2.3 |
|
Total business |
|
20,424 |
|
|
1.8 |
|
|
|
29,081 |
|
|
2.5 |
|
|
|
31,659 |
|
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
Classic, collectible and other auto |
|
58,003 |
|
|
5.0 |
|
|
|
58,618 |
|
|
5.0 |
|
|
|
59,962 |
|
|
5.0 |
|
Other consumer |
|
14,011 |
|
|
1.2 |
|
|
|
13,377 |
|
|
1.1 |
|
|
|
10,657 |
|
|
0.9 |
|
Total consumer |
|
72,014 |
|
|
6.2 |
|
|
|
71,995 |
|
|
6.1 |
|
|
|
70,619 |
|
|
5.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
1,157,905 |
|
|
100.0 |
% |
|
|
1,191,231 |
|
|
100.0 |
% |
|
|
1,200,778 |
|
|
100.0 |
% |
Less: |
|
|
|
|
|
|
|
|
|
|
|
ACL |
|
14,996 |
|
|
|
|
|
15,306 |
|
|
|
|
|
16,028 |
|
|
|
Loans receivable, net |
$ |
1,142,909 |
|
|
|
|
$ |
1,175,925 |
|
|
|
|
$ |
1,184,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concentrations of credit:
(1) |
|
|
|
|
|
|
|
|
|
|
|
Construction loans as % of
total capital |
|
36.3 |
% |
|
|
|
|
38.3 |
% |
|
|
|
|
44.9 |
% |
|
|
Total non-owner occupied
commercial real estate as % of total capital |
|
307.2 |
% |
|
|
|
|
316.8 |
% |
|
|
|
|
347.7 |
% |
|
|
(1) Concentrations of credit percentages are for
First Financial Northwest Bank only using classifications in
accordance with FDIC regulatory guidelines.
|
FIRST FINANCIAL NORTHWEST, INC. AND
SUBSIDIARIESKey Financial Measures(Unaudited) |
|
|
At or For the Quarter Ended |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
(Dollars in thousands, except per share data) |
Performance
Ratios: (1) |
|
|
|
|
|
|
|
|
|
Return on assets |
|
(0.29 |
)% |
|
|
0.31 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.57 |
% |
Return on equity |
|
(2.67 |
) |
|
|
2.97 |
|
|
|
3.71 |
|
|
|
3.74 |
|
|
|
5.31 |
|
Dividend payout ratio |
|
(108.33 |
) |
|
|
100.00 |
|
|
|
79.26 |
|
|
|
79.90 |
|
|
|
56.52 |
|
Equity-to-assets ratio |
|
10.91 |
|
|
|
10.74 |
|
|
|
10.44 |
|
|
|
10.39 |
|
|
|
10.14 |
|
Tangible equity ratio (2) |
|
10.83 |
|
|
|
10.66 |
|
|
|
10.36 |
|
|
|
10.31 |
|
|
|
10.06 |
|
Net interest margin |
|
2.55 |
|
|
|
2.54 |
|
|
|
2.69 |
|
|
|
2.84 |
|
|
|
3.22 |
|
Average interest-earning
assets to average interest-bearing liabilities |
|
116.40 |
|
|
|
115.84 |
|
|
|
116.94 |
|
|
|
116.27 |
|
|
|
117.78 |
|
Efficiency ratio |
|
116.97 |
|
|
|
85.17 |
|
|
|
84.49 |
|
|
|
85.57 |
|
|
|
75.12 |
|
Noninterest expense as a
percent of average total assets |
|
3.05 |
|
|
|
2.18 |
|
|
|
2.29 |
|
|
|
2.50 |
|
|
|
2.42 |
|
Book value per common
share |
$ |
17.46 |
|
|
$ |
17.61 |
|
|
$ |
17.35 |
|
|
$ |
17.35 |
|
|
$ |
17.45 |
|
Tangible book value per share
(2) |
|
17.32 |
|
|
|
17.47 |
|
|
|
17.20 |
|
|
|
17.20 |
|
|
|
17.30 |
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios: (3) |
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio |
|
10.41 |
% |
|
|
10.18 |
% |
|
|
10.25 |
% |
|
|
10.02 |
% |
|
|
10.24 |
% |
Common equity tier 1 capital
ratio |
|
14.98 |
|
|
|
14.90 |
|
|
|
14.75 |
|
|
|
14.49 |
|
|
|
14.33 |
|
Tier 1 capital ratio |
|
14.98 |
|
|
|
14.90 |
|
|
|
14.75 |
|
|
|
14.49 |
|
|
|
14.33 |
|
Total capital ratio |
|
16.24 |
|
|
|
16.15 |
|
|
|
16.00 |
|
|
|
15.75 |
|
|
|
15.59 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: (4) |
|
|
|
|
|
|
|
|
|
Nonaccrual loans as a percent
of total loans |
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
ACL as a percent of total
loans |
|
1.30 |
|
|
|
1.28 |
|
|
|
1.29 |
|
|
|
1.31 |
|
|
|
1.33 |
|
Net charge-offs to average
loans receivable, net |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses: |
|
|
|
|
|
|
|
|
|
ACL, beginning of the
quarter |
$ |
15,306 |
|
|
$ |
15,306 |
|
|
$ |
15,606 |
|
|
$ |
16,028 |
|
|
$ |
15,227 |
|
Beginning balance adjustment from adoption of Topic 326 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
500 |
|
(Recapture of provision) provision |
|
(300 |
) |
|
|
- |
|
|
|
(300 |
) |
|
|
(400 |
) |
|
|
300 |
|
Charge-offs |
|
(10 |
) |
|
|
- |
|
|
|
- |
|
|
|
(22 |
) |
|
|
- |
|
Recoveries |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
ACL, end of the quarter |
$ |
14,996 |
|
|
$ |
15,306 |
|
|
$ |
15,306 |
|
|
$ |
15,606 |
|
|
$ |
16,028 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for unfunded
commitments |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
439 |
|
|
$ |
439 |
|
|
$ |
439 |
|
|
$ |
286 |
|
|
$ |
248 |
|
Provision for credit losses |
|
125 |
|
|
|
- |
|
|
|
- |
|
|
|
153 |
|
|
|
38 |
|
Ending balance |
$ |
564 |
|
|
$ |
439 |
|
|
$ |
439 |
|
|
$ |
439 |
|
|
$ |
286 |
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
|
|
|
|
|
|
|
|
|
ACL - loans |
$ |
(300 |
) |
|
$ |
- |
|
|
$ |
(300 |
) |
|
$ |
(400 |
) |
|
$ |
300 |
|
Allowance for unfunded commitments |
|
125 |
|
|
|
- |
|
|
|
- |
|
|
|
153 |
|
|
|
38 |
|
Total |
$ |
(175 |
) |
|
$ |
- |
|
|
$ |
(300 |
) |
|
$ |
(247 |
) |
|
$ |
338 |
|
(1) Performance ratios are calculated on an
annualized basis.(2) Tangible equity, tangible assets, tangible
equity ratio and tangible book value per share are non-GAAP
financial measures. Refer to Non-GAAP Financial Measures at the end
of this press release for a reconciliation to the nearest GAAP
equivalents.(3) Capital ratios are for First Financial Northwest
Bank only.(4) Loans are reported net of undisbursed funds.
|
FIRST FINANCIAL NORTHWEST, INC. AND
SUBSIDIARIESKey Financial Measures(Unaudited) |
|
|
At or For the Quarter Ended |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
(Dollars in thousands) |
Yields and
Costs: (1) |
|
|
|
|
|
|
|
|
|
Yield on loans |
|
5.88 |
% |
|
|
5.83 |
% |
|
|
5.73 |
% |
|
|
5.71 |
% |
|
|
5.56 |
% |
Yield on investments |
|
4.11 |
|
|
|
4.11 |
|
|
|
3.98 |
|
|
|
3.93 |
|
|
|
3.88 |
|
Yield on interest-earning
deposits |
|
5.28 |
|
|
|
5.32 |
|
|
|
5.18 |
|
|
|
4.91 |
|
|
|
4.40 |
|
Yield on FHLB stock |
|
7.79 |
|
|
|
7.29 |
|
|
|
6.57 |
|
|
|
7.06 |
|
|
|
7.30 |
|
Yield on interest-earning assets |
|
5.62 |
% |
|
|
5.56 |
% |
|
|
5.46 |
% |
|
|
5.43 |
% |
|
|
5.29 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of interest-bearing
deposits |
|
3.69 |
% |
|
|
3.62 |
% |
|
|
3.33 |
% |
|
|
3.06 |
% |
|
|
2.41 |
% |
Cost of borrowings |
|
2.65 |
|
|
|
2.40 |
|
|
|
2.42 |
|
|
|
2.55 |
|
|
|
2.69 |
|
Cost of interest-bearing liabilities |
|
3.58 |
% |
|
|
3.50 |
% |
|
|
3.24 |
% |
|
|
3.01 |
% |
|
|
2.44 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of total deposits
(2) |
|
3.38 |
% |
|
|
3.31 |
% |
|
|
3.03 |
% |
|
|
2.78 |
% |
|
|
2.17 |
% |
Cost of funds (3) |
|
3.31 |
|
|
|
3.23 |
|
|
|
2.97 |
|
|
|
2.76 |
|
|
|
2.23 |
|
|
|
|
|
|
|
|
|
|
|
Average
Balances: |
|
|
|
|
|
|
|
|
|
Loans |
$ |
1,160,156 |
|
|
$ |
1,167,339 |
|
|
$ |
1,171,483 |
|
|
$ |
1,182,939 |
|
|
$ |
1,168,539 |
|
Investments |
|
202,106 |
|
|
|
206,837 |
|
|
|
211,291 |
|
|
|
215,113 |
|
|
|
219,969 |
|
Interest-earning deposits |
|
37,032 |
|
|
|
65,680 |
|
|
|
40,202 |
|
|
|
50,691 |
|
|
|
21,729 |
|
FHLB stock |
|
6,554 |
|
|
|
6,584 |
|
|
|
6,820 |
|
|
|
6,814 |
|
|
|
7,219 |
|
Total interest-earning assets |
$ |
1,405,848 |
|
|
$ |
1,446,440 |
|
|
$ |
1,429,796 |
|
|
$ |
1,455,557 |
|
|
$ |
1,417,456 |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,082,168 |
|
|
$ |
1,127,690 |
|
|
$ |
1,097,324 |
|
|
$ |
1,126,598 |
|
|
$ |
1,065,827 |
|
Borrowings |
|
125,604 |
|
|
|
120,978 |
|
|
|
125,402 |
|
|
|
125,275 |
|
|
|
137,600 |
|
Total interest-bearing liabilities |
$ |
1,207,772 |
|
|
$ |
1,248,668 |
|
|
$ |
1,222,726 |
|
|
$ |
1,251,873 |
|
|
$ |
1,203,427 |
|
Noninterest-bearing
deposits |
|
99,173 |
|
|
|
102,869 |
|
|
|
109,384 |
|
|
|
111,365 |
|
|
|
115,708 |
|
Total deposits and borrowings |
$ |
1,306,945 |
|
|
$ |
1,351,537 |
|
|
$ |
1,332,110 |
|
|
$ |
1,363,238 |
|
|
$ |
1,319,135 |
|
|
|
|
|
|
|
|
|
|
|
Average assets |
$ |
1,495,753 |
|
|
$ |
1,538,955 |
|
|
$ |
1,522,224 |
|
|
$ |
1,547,321 |
|
|
$ |
1,509,297 |
|
Average stockholders'
equity |
|
161,823 |
|
|
|
159,659 |
|
|
|
160,299 |
|
|
|
159,764 |
|
|
|
162,016 |
|
(1) Yields and costs are annualized.(2) Includes
noninterest-bearing deposits.(3) Includes total borrowings and
deposits (including noninterest-bearing deposits).
Non-GAAP Financial Measures
In addition to financial results presented in
accordance with generally accepted accounting principles utilized
in the United States ("GAAP"), this earnings release contains
non-GAAP financial measures that include tangible equity, tangible
assets, tangible book value per share, and the tangible
equity-to-assets ratio. The Company believes that these non-GAAP
financial measures and ratios as presented are useful for both
investors and management to understand the effects of goodwill and
core deposit intangible, net and provides an alternative view of
the Company’s performance over time and in comparison to the
Company’s competitors. Non-GAAP financial measures have
limitations, are not required to be uniformly applied and are not
audited. They should not be considered in isolation and are not a
substitute for other measures in this earnings release that are
presented in accordance with GAAP. These non-GAAP measures may not
be comparable to similarly titled measures reported by other
companies.
The following tables provide a reconciliation
between the GAAP and non-GAAP measures:
|
Quarter Ended |
|
|
Mar 31,2024 |
|
|
|
Dec 31,2023 |
|
|
|
Sep 30,2023 |
|
|
|
Jun 30,2023 |
|
|
|
Mar 31,2023 |
|
|
(Dollars in thousands, except per share data) |
Tangible equity
to tangible assets and tangible book value per share: |
Total stockholders' equity (GAAP) |
$ |
160,183 |
|
|
$ |
161,660 |
|
|
$ |
159,235 |
|
|
$ |
158,715 |
|
|
$ |
159,645 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
889 |
|
|
|
889 |
|
|
|
889 |
|
|
|
889 |
|
|
|
889 |
|
Core deposit intangible, net |
|
388 |
|
|
|
419 |
|
|
|
451 |
|
|
|
484 |
|
|
|
516 |
|
Tangible equity (Non-GAAP) |
$ |
158,906 |
|
|
$ |
160,352 |
|
|
$ |
157,895 |
|
|
$ |
157,342 |
|
|
$ |
158,240 |
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
$ |
1,468,350 |
|
|
$ |
1,505,082 |
|
|
$ |
1,525,568 |
|
|
$ |
1,528,079 |
|
|
$ |
1,574,271 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
889 |
|
|
|
889 |
|
|
|
889 |
|
|
|
889 |
|
|
|
889 |
|
Core deposit intangible, net |
|
388 |
|
|
|
419 |
|
|
|
451 |
|
|
|
484 |
|
|
|
516 |
|
Tangible assets (Non-GAAP) |
$ |
1,467,073 |
|
|
$ |
1,503,774 |
|
|
$ |
1,524,228 |
|
|
$ |
1,526,706 |
|
|
$ |
1,572,866 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at period end |
|
9,174,425 |
|
|
|
9,179,510 |
|
|
|
9,179,510 |
|
|
|
9,148,086 |
|
|
|
9,148,086 |
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets ratio (GAAP) |
|
10.91 |
% |
|
|
10.74 |
% |
|
|
10.44 |
% |
|
|
10.39 |
% |
|
|
10.14 |
% |
Tangible equity-to-tangible assets ratio (Non-GAAP) |
|
10.83 |
|
|
|
10.66 |
|
|
|
10.36 |
|
|
|
10.31 |
|
|
|
10.06 |
|
Book value per common share (GAAP) |
$ |
17.46 |
|
|
$ |
17.61 |
|
|
$ |
17.35 |
|
|
$ |
17.35 |
|
|
$ |
17.45 |
|
Tangible book value per share (Non-GAAP) |
|
17.32 |
|
|
|
17.47 |
|
|
|
17.20 |
|
|
|
17.20 |
|
|
|
17.30 |
|
For more information, contact:Joseph W. Kiley III, President and
Chief Executive OfficerRich Jacobson, Executive Vice President and
Chief Financial Officer(425) 255-4400
First Financial Northwest (NASDAQ:FFNW)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
First Financial Northwest (NASDAQ:FFNW)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024