First Financial Northwest, Inc. Reports Net Income of $3.3 million or $0.36 per Diluted Share for the First Quarter Ended March 31, 2022
First Financial Northwest reported a net income of $3.3 million, or $0.36 per diluted share, for Q1 2022, up from $2.7 million in Q4 2021 and $2.5 million in Q1 2021. The average cost of funds improved to 0.51%. Net loans receivable rose by $17.9 million, totaling $1.12 billion, despite $5.7 million in PPP loan repayments. Deposits fell by $17.4 million, though noninterest-bearing deposits increased by $12.8 million. The bank recorded a $500,000 recapture of loan loss provision. The regular quarterly dividend was raised to $0.12 per share from $0.11.
- Net income increased to $3.3 million, up from $2.5 million YoY.
- Average cost of funds decreased to 0.51%.
- Net loans receivable rose by $17.9 million to $1.12 billion.
- Noninterest-bearing demand deposits increased by $12.8 million.
- Quarterly dividend increased to $0.12 per share.
- Total deposits decreased by $17.4 million in the quarter.
- Loan repayments included $5.7 million in PPP loans.
RENTON, Wash., April 28, 2022 (GLOBE NEWSWIRE) -- First Financial Northwest, Inc. (the “Company”) (NASDAQ GS: FFNW), the holding company for First Financial Northwest Bank (the “Bank”), today reported net income for the quarter ended March 31, 2022, of
“The first quarter of 2022 showed continued improvement in our funding base, with our average cost of funds declining to
“In addition to the ongoing improvement in our cost of funds, I was pleased to see checking account deposit balances increase
“As a result of our quarterly analysis of our loan portfolio, we downgraded to substandard
Highlights for the quarter ended March 31, 2022:
- Net loans receivable increased by
$17.9 million to$1.12 billion at March 31, 2022, despite a reduction in Paycheck Protection Program (“PPP”) loan balances totaling$5.7 million . - Total deposits decreased by
$17.4 million in the quarter; however, noninterest-bearing demand deposits increased by$12.8 million . - The Company’s book value per share increased to
$17.32 at March 31, 2022, compared to$17.30 at December 31, 2021, and$16.35 at March 31, 2021. - The Company repurchased a total of 40,784 shares at an average price of
$17.00 per share in the quarter, including 17,716 shares at an average price of$17.00 per share under its most recent board-authorized share repurchase plan authorizing the repurchase of up to 455,000 shares, or approximately5% of the Company’s outstanding shares effective February 18, 2022. - The Company increased its regular quarterly cash dividend to shareholders to
$0.12 per share from$0.11 per share. - The Bank’s Tier 1 leverage and total capital ratios at March 31, 2022, were
10.5% and15.3% , respectively, compared to10.3% and15.5% , respectively, at December 31, 2021, and10.2% and15.6% , respectively at March 31, 2021. - Based on management’s evaluation of the adequacy of the allowance for loan and lease losses (“ALLL”), the Bank recorded a
$500,000 recapture of provision for loan losses for the quarter.
Deposits totaled
The following table presents a breakdown of our total deposits (unaudited):
| Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | Three Month Change | One Year Change | ||||||||||||
| Deposits: | (Dollars in thousands) | |||||||||||||||
| Noninterest-bearing demand | $ | 130,596 | $ | 117,751 | $ | 114,437 | $ | 12,845 | $ | 16,159 | ||||||
| Interest-bearing demand | 99,794 | 97,907 | 114,098 | 1,887 | (14,304 | ) | ||||||||||
| Savings | 23,441 | 23,146 | 20,470 | 295 | 2,971 | |||||||||||
| Money market | 609,080 | 624,543 | 500,619 | (15,463 | ) | 108,461 | ||||||||||
| Certificates of deposit, retail | 277,190 | 294,127 | 384,031 | (16,937 | ) | (106,841 | ) | |||||||||
| Total deposits | $ | 1,140,101 | $ | 1,157,474 | $ | 1,133,655 | $ | (17,373 | ) | $ | 6,446 | |||||
The following tables present an analysis of total deposits by branch office (unaudited):
| March 31, 2022 | ||||||||||||
| Noninterest- bearing demand | Interest- bearing demand | Savings | Money market | Certificates of deposit, retail | Total | |||||||
| (Dollars in thousands) | ||||||||||||
| King County | ||||||||||||
| Renton | $ | 41,009 | $ | 46,467 | $ | 15,242 | $ | 327,054 | $ | 236,637 | $ | 666,409 |
| Landing | 5,105 | 2,328 | 182 | 23,720 | 3,297 | 34,632 | ||||||
| Woodinville | 3,379 | 6,863 | 1,004 | 18,426 | 4,706 | 34,378 | ||||||
| Bothell | 3,301 | 1,359 | 65 | 8,274 | 1,164 | 14,163 | ||||||
| Crossroads | 19,127 | 6,449 | 58 | 53,827 | 4,638 | 84,099 | ||||||
| Kent | 6,706 | 8,077 | 27 | 15,927 | 273 | 31,010 | ||||||
| Kirkland | 7,587 | 358 | 19 | 8,114 | 25 | 16,103 | ||||||
| Issaquah | 2,865 | 371 | 25 | 3,759 | 200 | 7,220 | ||||||
| Total King County | 89,079 | 72,272 | 16,622 | 459,101 | 250,940 | 888,014 | ||||||
| Snohomish County | ||||||||||||
| Mill Creek | 6,479 | 2,515 | 1,144 | 20,807 | 6,769 | 37,714 | ||||||
| Edmonds | 20,054 | 7,814 | 913 | 41,399 | 8,332 | 78,512 | ||||||
| Clearview | 5,781 | 4,598 | 1,348 | 25,563 | 1,242 | 38,532 | ||||||
| Lake Stevens | 4,176 | 7,163 | 1,684 | 30,239 | 4,504 | 47,766 | ||||||
| Smokey Point | 3,199 | 4,827 | 1,676 | 27,809 | 5,393 | 42,904 | ||||||
| Total Snohomish County | 39,689 | 26,917 | 6,765 | 145,817 | 26,240 | 245,428 | ||||||
| Pierce County | ||||||||||||
| University Place | 1,345 | 59 | 22 | 2,541 | 10 | 3,977 | ||||||
| Gig Harbor | 483 | 546 | 32 | 1,621 | - | 2,682 | ||||||
| Total Pierce County | 1,828 | 605 | 54 | 4,162 | 10 | 6,659 | ||||||
| Total deposits | $ | 130,596 | $ | 99,794 | $ | 23,441 | $ | 609,080 | $ | 277,190 | $ | 1,140,101 |
| December 31, 2021 | ||||||||||||
| Noninterest- bearing demand | Interest- bearing demand | Savings | Money market | Certificates of deposit, retail | Total | |||||||
| (Dollars in thousands) | ||||||||||||
| King County | ||||||||||||
| Renton | $ | 44,550 | $ | 46,485 | $ | 14,948 | $ | 316,781 | $ | 251,860 | $ | 674,624 |
| Landing | 6,060 | 3,218 | 180 | 24,056 | 3,620 | 37,134 | ||||||
| Woodinville | 3,625 | 6,814 | 1,017 | 19,585 | 4,974 | 36,015 | ||||||
| Bothell | 2,590 | 1,726 | 86 | 8,453 | 1,158 | 14,013 | ||||||
| Crossroads | 14,094 | 4,129 | 45 | 69,687 | 4,622 | 92,577 | ||||||
| Kent | 6,022 | 8,148 | 2 | 20,268 | 282 | 34,722 | ||||||
| Kirkland | 5,449 | 333 | 12 | 6,834 | 25 | 12,653 | ||||||
| Issaquah | 1,326 | 367 | 17 | 4,532 | 100 | 6,342 | ||||||
| Total King County | 83,716 | 71,220 | 16,307 | 470,196 | 266,641 | 908,080 | ||||||
| Snohomish County | ||||||||||||
| Mill Creek | 5,854 | 3,559 | 694 | 18,781 | 7,101 | 35,989 | ||||||
| Edmonds | 13,839 | 6,809 | 1,103 | 41,513 | 8,954 | 72,218 | ||||||
| Clearview | 5,799 | 4,610 | 1,380 | 24,925 | 1,290 | 38,004 | ||||||
| Lake Stevens | 3,552 | 6,878 | 1,904 | 33,122 | 4,500 | 49,956 | ||||||
| Smokey Point | 3,476 | 4,205 | 1,727 | 33,550 | 5,639 | 48,597 | ||||||
| Total Snohomish County | 32,520 | 26,061 | 6,808 | 151,891 | 27,484 | 244,764 | ||||||
| Pierce County | ||||||||||||
| University Place | 1,058 | 51 | 8 | 481 | 2 | 1,600 | ||||||
| Gig Harbor | 457 | 575 | 23 | 1,975 | - | 3,030 | ||||||
| Total Pierce County | 1,515 | 626 | 31 | 2,456 | 2 | 4,630 | ||||||
| Total deposits | $ | 117,751 | $ | 97,907 | $ | 23,146 | $ | 624,543 | $ | 294,127 | $ | 1,157,474 |
Net loans receivable totaled
The ALLL represented
There was a single nonperforming consumer loan of
The following table presents a breakdown of our nonperforming assets (unaudited):
| Mar 31, | Dec 31, | Mar 31, | Three Month | One Year | |||||||||||||
| 2022 | 2021 | 2021 | Change | Change | |||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Nonperforming loans: | |||||||||||||||||
| Multifamily | $ | ─ | $ | ─ | $ | 2,036 | $ | ─ | $ | (2,036 | ) | ||||||
| Consumer | 179 | ─ | ─ | 179 | 179 | ||||||||||||
| Total nonperforming loans | 179 | ─ | 2,036 | 179 | (1,857 | ) | |||||||||||
| OREO | ─ | ─ | 454 | ─ | (454 | ) | |||||||||||
| Total nonperforming assets (1) | $ | 179 | $ | ─ | $ | 2,490 | $ | 179 | $ | (2,311 | ) | ||||||
| Nonperforming assets as a percent | |||||||||||||||||
| of total assets | 0.01 | % | 0.17 | % | |||||||||||||
(1) The difference between nonperforming assets reported above, and the totals reported by other industry sources, is due to their inclusion of all Troubled Debt Restructured Loans ("TDRs") as nonperforming loans, although
The Company accounts for certain loan modifications or restructurings as TDRs. In general, the modification or restructuring of a debt is considered a TDR if, for economic or legal reasons related to the borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. TDRs totaled
Net interest income totaled
Total interest income was
Total interest expense was
The net interest margin was
Noninterest income for the quarter ended March 31, 2022, totaled
Noninterest expense totaled
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. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements. 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 effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions and other uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate customers, including economic activity, employment levels and market liquidity; increased competitive pressures; changes in the interest rate environment; legislative and regulatory changes; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other filings with 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. These risks could cause our actual results for 2022 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of, us and could negatively affect our operating and stock performance.
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands, except share data)
(Unaudited)
| Assets | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | Three Month Change | One Year Change | ||||||||||||
| Cash on hand and in banks | $ | 7,979 | $ | 7,246 | $ | 7,211 | 10.1 | % | 10.7 | % | |||||||
| Interest-earning deposits with banks | 19,633 | 66,145 | 75,023 | (70.3 | ) | (73.8 | ) | ||||||||||
| Investments available-for-sale, at fair value | 180,212 | 168,948 | 168,042 | 6.7 | 7.2 | ||||||||||||
| Investments held-to-maturity, at amortized cost | 2,426 | 2,432 | 2,413 | (0.2 | ) | 0.5 | |||||||||||
| Loans receivable, net of allowance of | 1,121,382 | 1,103,461 | 1,098,832 | 1.6 | 2.1 | ||||||||||||
| Federal Home Loan Bank ("FHLB") stock, at cost | 5,512 | 5,465 | 6,465 | 0.9 | (14.7 | ) | |||||||||||
| Accrued interest receivable | 5,590 | 5,285 | 5,702 | 5.8 | (2.0 | ) | |||||||||||
| Deferred tax assets, net | 1,069 | 850 | 1,163 | 25.8 | (8.1 | ) | |||||||||||
| Other real estate owned ("OREO") | - | - | 454 | n/a | (100.0 | ) | |||||||||||
| Premises and equipment, net | 22,254 | 22,440 | 22,512 | (0.8 | ) | (1.1 | ) | ||||||||||
| Bank owned life insurance ("BOLI"), net | 35,552 | 35,210 | 33,357 | 1.0 | 6.6 | ||||||||||||
| Prepaid expenses and other assets | 8,451 | 3,628 | 3,398 | 132.9 | 148.7 | ||||||||||||
| Right of use asset ("ROU"), net | 3,455 | 3,646 | 3,976 | (5.2 | ) | (13.1 | ) | ||||||||||
| Goodwill | 889 | 889 | 889 | 0.0 | 0.0 | ||||||||||||
| Core deposit intangible, net | 650 | 684 | 789 | (5.0 | ) | (17.6 | ) | ||||||||||
| Total assets | $ | 1,415,054 | $ | 1,426,329 | $ | 1,430,226 | (0.8 | ) | (1.1 | ) | |||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||
| Deposits | |||||||||||||||||
| Noninterest-bearing deposits | $ | 130,596 | $ | 117,751 | $ | 114,437 | 10.9 | % | 14.1 | % | |||||||
| Interest-bearing deposits | 1,009,505 | 1,039,723 | 1,019,218 | (2.9 | ) | (1.0 | ) | ||||||||||
| Total deposits | 1,140,101 | 1,157,474 | 1,133,655 | (1.5 | ) | 0.6 | |||||||||||
| Advances from the FHLB | 95,000 | 95,000 | 120,000 | 0.0 | (20.8 | ) | |||||||||||
| Advance payments from borrowers for taxes and insurance | 5,299 | 2,909 | 4,813 | 82.2 | 10.1 | ||||||||||||
| Lease liability, net | 3,617 | 3,805 | 4,123 | (4.9 | ) | (12.3 | ) | ||||||||||
| Accrued interest payable | 112 | 112 | 197 | 0.0 | (43.1 | ) | |||||||||||
| Other liabilities | 13,168 | 9,150 | 8,995 | 43.9 | 46.4 | ||||||||||||
| Total liabilities | 1,257,297 | 1,268,450 | 1,271,783 | (0.9 | ) | (1.1 | ) | ||||||||||
| Commitments and contingencies | |||||||||||||||||
| Stockholders' equity | |||||||||||||||||
| Preferred stock, | - | - | - | n/a | n/a | ||||||||||||
| Common stock, | 91 | 91 | 97 | 0.0 | (6.2 | ) | |||||||||||
| Additional paid-in capital | 71,780 | 72,298 | 81,099 | (0.7 | ) | (11.5 | ) | ||||||||||
| Retained earnings | 88,339 | 86,162 | 79,455 | 2.5 | 11.2 | ||||||||||||
| Accumulated other comprehensive (loss) income, net of tax | (1,889 | ) | 174 | (515 | ) | (1,185.6 | ) | 266.8 | |||||||||
| Unearned Employee Stock Ownership Plan ("ESOP") shares | (564 | ) | (846 | ) | (1,693 | ) | (33.3 | ) | (66.7 | ) | |||||||
| Total stockholders' equity | 157,757 | 157,879 | 158,443 | (0.1 | ) | (0.4 | ) | ||||||||||
| Total liabilities and stockholders' equity | $ | 1,415,054 | $ | 1,426,329 | $ | 1,430,226 | (0.8 | )% | (1.1 | )% | |||||||
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
Consolidated Income Statements
(Dollars in thousands, except share data)
(Unaudited)
| Quarter Ended | |||||||||||||||
| Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | Three Month Change | One Year Change | |||||||||||
| Interest income | |||||||||||||||
| Loans, including fees | $ | 12,001 | $ | 12,398 | $ | 12,624 | (3.2 | )% | (4.9 | )% | |||||
| Investment securities | 831 | 804 | 748 | 3.4 | 11.1 | ||||||||||
| Interest-earning deposits with banks | 19 | 19 | 12 | 0.0 | 58.3 | ||||||||||
| Dividends on FHLB Stock | 74 | 85 | 79 | (12.9 | ) | (6.3 | ) | ||||||||
| Total interest income | 12,925 | 13,306 | 13,463 | (2.9 | ) | (4.0 | ) | ||||||||
| Interest expense | |||||||||||||||
| Deposits | 1,257 | 1,390 | 2,299 | (9.6 | ) | (45.3 | ) | ||||||||
| FHLB advances and other borrowings | 300 | 340 | 418 | (11.8 | ) | (28.2 | ) | ||||||||
| Total interest expense | 1,557 | 1,730 | 2,717 | (10.0 | ) | (42.7 | ) | ||||||||
| Net interest income | 11,368 | 11,576 | 10,746 | (1.8 | ) | 5.8 | |||||||||
| (Recapture of provision) provision for loan losses | (500 | ) | 600 | 300 | (183.3 | ) | (266.7 | ) | |||||||
| Net interest income after (recapture of provision) provision for loan losses | 11,868 | 10,976 | 10,446 | 8.1 | 13.6 | ||||||||||
| Noninterest income | |||||||||||||||
| Net gain on sale of investments | - | 32 | - | (100.0 | ) | n/a | |||||||||
| BOLI income | 288 | 216 | 269 | 33.3 | 7.1 | ||||||||||
| Wealth management revenue | 82 | 104 | 160 | (21.2 | ) | (48.8 | ) | ||||||||
| Deposit related fees | 215 | 218 | 200 | (1.4 | ) | 7.5 | |||||||||
| Loan related fees | 199 | 551 | 132 | (63.9 | ) | 50.8 | |||||||||
| Other | 5 | 5 | 3 | 0.0 | 66.7 | ||||||||||
| Total noninterest income | 789 | 1,126 | 764 | (29.9 | ) | 3.3 | |||||||||
| Noninterest expense | |||||||||||||||
| Salaries and employee benefits | 5,261 | 5,374 | 4,945 | (2.1 | ) | 6.4 | |||||||||
| Occupancy and equipment | 1,228 | 1,154 | 1,100 | 6.4 | 11.6 | ||||||||||
| Professional fees | 452 | 477 | 532 | (5.2 | ) | (15.0 | ) | ||||||||
| Data processing | 677 | 689 | 697 | (1.7 | ) | (2.9 | ) | ||||||||
| Regulatory assessments | 101 | 100 | 121 | 1.0 | (16.5 | ) | |||||||||
| Insurance and bond premiums | 129 | 110 | 124 | 17.3 | 4.0 | ||||||||||
| Marketing | 37 | 37 | 29 | 0.0 | 27.6 | ||||||||||
| Other general and administrative | 741 | 775 | 581 | (4.4 | ) | 27.5 | |||||||||
| Total noninterest expense | 8,626 | 8,716 | 8,129 | (1.0 | ) | 6.1 | |||||||||
| Income before federal income tax provision | 4,031 | 3,386 | 3,081 | 19.0 | 30.8 | ||||||||||
| Federal income tax provision | 771 | 643 | 584 | 19.9 | 32.0 | ||||||||||
| Net income | $ | 3,260 | $ | 2,743 | $ | 2,497 | 18.8 | % | 30.6 | % | |||||
| Basic earnings per share | $ | 0.36 | $ | 0.30 | $ | 0.26 | |||||||||
| Diluted earnings per share | $ | 0.36 | $ | 0.29 | $ | 0.26 | |||||||||
| Weighted average number of common shares outstanding | 8,987,482 | 9,129,724 | 9,490,058 | ||||||||||||
| Weighted average number of diluted shares outstanding | 9,117,432 | 9,273,502 | 9,566,671 | ||||||||||||
The following table presents a breakdown of the loan portfolio (unaudited):
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Residential: | ||||||||||||||||||||
| Micro-unit apartments | $ | - | 0.0 | % | $ | - | 0.0 | % | $ | 11,708 | 1.0 | % | ||||||||
| Other multifamily | 152,855 | 13.4 | 130,146 | 11.6 | 128,360 | 11.5 | ||||||||||||||
| Total multifamily residential | 152,855 | 13.4 | 130,146 | 11.6 | 140,068 | 12.5 | ||||||||||||||
| Non-residential: | ||||||||||||||||||||
| Office | 87,394 | 7.7 | 90,727 | 8.1 | 83,176 | 7.5 | ||||||||||||||
| Retail | 142,725 | 12.6 | 138,463 | 12.4 | 110,843 | 9.9 | ||||||||||||||
| Mobile home park | 20,409 | 1.8 | 20,636 | 1.8 | 29,708 | 2.7 | ||||||||||||||
| Hotel / motel | 58,406 | 5.1 | 64,854 | 5.8 | 65,475 | 5.9 | ||||||||||||||
| Nursing Home | 12,622 | 1.1 | 12,713 | 1.1 | 12,852 | 1.1 | ||||||||||||||
| Warehouse | 21,103 | 1.9 | 17,724 | 1.6 | 17,435 | 1.6 | ||||||||||||||
| Storage | 34,442 | 3.0 | 32,990 | 2.9 | 33,498 | 3.0 | ||||||||||||||
| Other non-residential | 39,887 | 3.5 | 41,310 | 3.8 | 32,483 | 2.8 | ||||||||||||||
| Total non-residential | 416,988 | 36.7 | 419,417 | 37.5 | 385,470 | 34.5 | ||||||||||||||
| Construction/land: | ||||||||||||||||||||
| One-to-four family residential | 35,953 | 3.2 | 34,677 | 3.1 | 27,817 | 2.5 | ||||||||||||||
| Multifamily | 17,196 | 1.5 | 37,194 | 3.3 | 58,718 | 5.3 | ||||||||||||||
| Commercial | 6,189 | 0.5 | 6,189 | 0.6 | 5,837 | 0.5 | ||||||||||||||
| Land development | 15,359 | 1.4 | 15,395 | 1.4 | 2,173 | 0.2 | ||||||||||||||
| Total construction/land | 74,697 | 6.6 | 93,455 | 8.4 | 94,545 | 8.5 | ||||||||||||||
| One-to-four family residential: | ||||||||||||||||||||
| Permanent owner occupied | 197,447 | 17.4 | 185,320 | 16.6 | 199,845 | 17.9 | ||||||||||||||
| Permanent non-owner occupied | 214,784 | 18.9 | 199,796 | 17.8 | 179,401 | 16.1 | ||||||||||||||
| Total one-to-four family residential | 412,231 | 36.3 | 385,116 | 34.4 | 379,246 | 34.0 | ||||||||||||||
| Business | ||||||||||||||||||||
| Aircraft | 4,647 | 0.4 | 6,079 | 0.5 | 9,512 | 0.8 | ||||||||||||||
| Small Business Administration ("SBA") | 816 | 0.1 | 839 | 0.1 | 906 | 0.1 | ||||||||||||||
| Paycheck Protection Program ("PPP") | 5,181 | 0.5 | 10,849 | 1.0 | 45,220 | 4.1 | ||||||||||||||
| Other business | 19,902 | 1.7 | 28,823 | 2.5 | 22,656 | 2.0 | ||||||||||||||
| Total business | 30,546 | 2.7 | 46,590 | 4.1 | 78,294 | 7.0 | ||||||||||||||
| Consumer | ||||||||||||||||||||
| Classic, collectible and other auto | 38,781 | 3.4 | 35,861 | 3.2 | 26,488 | 2.4 | ||||||||||||||
| Other consumer | 10,650 | 0.9 | 8,951 | 0.8 | 12,280 | 1.1 | ||||||||||||||
| Total consumer | 49,431 | 4.3 | 44,812 | 4.0 | 38,768 | 3.5 | ||||||||||||||
| Total loans | 1,136,748 | 100.0 | % | 1,119,536 | 100.0 | % | 1,116,391 | 100.0 | % | |||||||||||
| Less: | ||||||||||||||||||||
| Deferred loan fees, net | 207 | 418 | 2,057 | |||||||||||||||||
| ALLL | 15,159 | 15,657 | 15,502 | |||||||||||||||||
| Loans receivable, net | $ | 1,121,382 | $ | 1,103,461 | $ | 1,098,832 | ||||||||||||||
| Concentrations of credit: (1) | ||||||||||||||||||||
| Construction loans as % of total capital | 51.9 | % | 59.7 | % | 64.0 | % | ||||||||||||||
| Total non-owner occupied commercial real estate as % of total capital | 379.6 | % | 384.0 | % | 391.8 | % | ||||||||||||||
(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 SUBSIDIARIES
Key Financial Measures
(Unaudited)
| At or For the Quarter Ended | |||||||||||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Performance Ratios: (1) | |||||||||||||||||||
| Return on assets | 0.93 | % | 0.76 | % | 0.88 | % | 1.07 | % | 0.73 | % | |||||||||
| Return on equity | 8.33 | 6.79 | 7.84 | 9.54 | 6.42 | ||||||||||||||
| Dividend payout ratio | 33.20 | 36.67 | 32.35 | 27.50 | 42.31 | ||||||||||||||
| Equity-to-assets ratio | 11.15 | 11.07 | 11.21 | 11.30 | 11.08 | ||||||||||||||
| Tangible equity ratio (2) | 11.05 | 10.97 | 11.11 | 11.19 | 10.97 | ||||||||||||||
| Net interest margin | 3.43 | 3.40 | 3.33 | 3.36 | 3.31 | ||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 119.59 | 119.08 | 119.35 | 117.99 | 117.92 | ||||||||||||||
| Efficiency ratio | 70.96 | 68.62 | 67.26 | 66.92 | 70.63 | ||||||||||||||
| Noninterest expense as a percent of average total assets | 2.46 | 2.42 | 2.30 | 2.31 | 2.36 | ||||||||||||||
| Book value per common share | $ | 17.32 | $ | 17.30 | $ | 17.03 | $ | 16.75 | $ | 16.35 | |||||||||
| Tangible book value per share (2) | 17.15 | 17.13 | 16.86 | 16.58 | 16.17 | ||||||||||||||
| Capital Ratios: (3) | |||||||||||||||||||
| Tier 1 leverage ratio | 10.51 | % | 10.34 | % | 10.19 | % | 10.15 | % | 10.15 | % | |||||||||
| Common equity tier 1 capital ratio | 14.08 | 14.23 | 14.25 | 14.45 | 14.36 | ||||||||||||||
| Tier 1 capital ratio | 14.08 | 14.23 | 14.25 | 14.45 | 14.36 | ||||||||||||||
| Total capital ratio | 15.33 | 15.48 | 15.50 | 15.70 | 15.62 | ||||||||||||||
| Asset Quality Ratios: (4) | |||||||||||||||||||
| Nonperforming loans as a percent of total loans | 0.02 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.18 | % | |||||||||
| Nonperforming assets as a percent of total assets | 0.01 | 0.00 | 0.00 | 0.03 | 0.17 | ||||||||||||||
| ALLL as a percent of total loans | 1.33 | 1.40 | 1.35 | 1.35 | 1.39 | ||||||||||||||
| Net (recoveries) charge-offs to average loans receivable, net | (0.00 | ) | 0.00 | (0.01 | ) | (0.01 | ) | (0.00 | ) | ||||||||||
| Allowance for Loan Losses: | |||||||||||||||||||
| ALLL, beginning of the quarter | $ | 15,657 | $ | 15,057 | $ | 14,878 | $ | 15,502 | $ | 15,174 | |||||||||
| (Recapture of provision) provision | (500 | ) | 600 | 100 | (700 | ) | 300 | ||||||||||||
| Charge-offs | - | - | - | - | - | ||||||||||||||
| Recoveries | 2 | - | 79 | 76 | 28 | ||||||||||||||
| ALLL, end of the quarter | $ | 15,159 | $ | 15,657 | $ | 15,057 | $ | 14,878 | $ | 15,502 | |||||||||
| (1) | Performance ratios are calculated on an annualized basis. |
| (2) | Tangible equity excludes goodwill and core deposit intangible assets. Tangible assets exclude goodwill and other intangible assets. The 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 SUBSIDIARIES
Key Financial Measures (continued)
(Unaudited)
| At or For the Quarter Ended | |||||||||||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Yields and Costs: (1) | |||||||||||||||||||
| Yield on loans | 4.36 | % | 4.44 | % | 4.54 | % | 4.64 | % | 4.66 | % | |||||||||
| Yield on investments | 1.96 | 1.79 | 1.73 | 1.90 | 1.92 | ||||||||||||||
| Yield on interest-earning deposits | 0.15 | 0.13 | 0.14 | 0.10 | 0.09 | ||||||||||||||
| Yield on FHLB stock | 5.49 | 5.89 | 5.15 | 5.13 | 5.00 | ||||||||||||||
| Yield on interest-earning assets | 3.90 | % | 3.91 | % | 3.93 | % | 4.06 | % | 4.15 | % | |||||||||
| Cost of interest-bearing deposits | 0.50 | % | 0.53 | % | 0.63 | % | 0.75 | % | 0.94 | % | |||||||||
| Cost of borrowings | 1.28 | 1.33 | 1.42 | 1.37 | 1.41 | ||||||||||||||
| Cost of interest-bearing liabilities | 0.56 | % | 0.61 | % | 0.71 | % | 0.82 | % | 0.99 | % | |||||||||
| Cost of total deposits | 0.44 | % | 0.48 | % | 0.56 | % | 0.68 | % | 0.85 | % | |||||||||
| Cost of funds | 0.51 | 0.55 | 0.64 | 0.75 | 0.91 | ||||||||||||||
| Average Balances: | |||||||||||||||||||
| Loans | $ | 1,115,428 | $ | 1,108,836 | $ | 1,094,124 | $ | 1,092,710 | $ | 1,099,364 | |||||||||
| Investment securities | 171,685 | 178,500 | 187,261 | 180,128 | 158,208 | ||||||||||||||
| Interest-earning deposits | 49,857 | 56,800 | 68,618 | 64,035 | 52,336 | ||||||||||||||
| FHLB stock | 5,467 | 5,726 | 6,465 | 6,485 | 6,412 | ||||||||||||||
| Total interest-earning assets | $ | 1,342,437 | $ | 1,349,862 | $ | 1,356,468 | $ | 1,343,358 | $ | 1,316,320 | |||||||||
| Interest-bearing deposits | $ | 1,027,507 | $ | 1,032,090 | $ | 1,016,540 | $ | 1,018,083 | $ | 996,295 | |||||||||
| Borrowings | 95,000 | 101,522 | 120,000 | 120,494 | 120,000 | ||||||||||||||
| Total interest-bearing liabilities | 1,122,507 | 1,133,612 | 1,136,540 | 1,138,577 | 1,116,295 | ||||||||||||||
| Noninterest-bearing deposits | 122,175 | 119,142 | 121,256 | 110,207 | 99,013 | ||||||||||||||
| Total deposits and borrowings | $ | 1,244,682 | $ | 1,252,754 | $ | 1,257,796 | $ | 1,248,784 | $ | 1,215,308 | |||||||||
| Average assets | $ | 1,424,054 | $ | 1,430,199 | $ | 1,436,801 | $ | 1,424,126 | $ | 1,394,213 | |||||||||
| Average stockholders' equity | 158,756 | 160,183 | 161,892 | 160,189 | 157,856 | ||||||||||||||
(1) Yields and costs are annualized.
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 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 certain items 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, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||
| (Dollars in thousands, except per share data) | |||||||||
Tangible equity to tangible assets and tangible book value per share:
| Total stockholders' equity (GAAP) | $ | 157,757 | $ | 157,879 | $ | 161,456 | $ | 161,621 | $ | 158,443 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 889 | 889 | 889 | 889 | 889 | ||||||||||||||
| Core deposit intangible, net | 650 | 684 | 719 | 754 | 789 | ||||||||||||||
| Tangible equity (Non-GAAP) | $ | 156,218 | $ | 156,306 | $ | 159,848 | $ | 159,978 | $ | 156,765 | |||||||||
| Total assets (GAAP) | $ | 1,415,054 | $ | 1,426,329 | $ | 1,440,202 | $ | 1,430,703 | $ | 1,430,226 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 889 | 889 | 889 | 889 | 889 | ||||||||||||||
| Core deposit intangible, net | 650 | 684 | 719 | 754 | 789 | ||||||||||||||
| Tangible assets (Non-GAAP) | $ | 1,413,515 | $ | 1,424,756 | $ | 1,438,594 | $ | 1,429,060 | $ | 1,428,548 | |||||||||
| Common shares outstanding at period end | 9,107,977 | 9,125,759 | 9,483,081 | 9,651,180 | 9,692,610 | ||||||||||||||
| Equity-to-assets ratio (GAAP) | 11.15 | % | 11.07 | % | 11.21 | % | 11.30 | % | 11.08 | % | |||||||||
| Tangible equity ratio (Non-GAAP) | 11.05 | 10.97 | 11.11 | 11.19 | 10.97 | ||||||||||||||
| Book value per common share (GAAP) | $ | 17.32 | $ | 17.30 | $ | 17.03 | $ | 16.75 | $ | 16.35 | |||||||||
| Tangible book value per share (Non-GAAP) | 17.15 | 17.13 | 16.86 | 16.58 | 16.17 | ||||||||||||||
For more information, contact:
Joseph W. Kiley III, President and Chief Executive Officer
Rich Jacobson, Executive Vice President and Chief Financial Officer
(425) 255-4400
FAQ
What were the Q1 2022 earnings for FFNW?
How much did FFNW's net loans receivable increase in Q1 2022?
What was the change in deposits for FFNW in Q1 2022?
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How did FFNW's average cost of funds change in Q1 2022?
