First Financial Northwest, Inc. Reports Third Quarter 2024 Results
First Financial Northwest (NASDAQ: FFNW) reported a net loss of $608,000, or $(0.07) per diluted share, for Q3 2024, compared to net income of $1.6 million in Q2 2024. The loss was primarily due to a $1.6 million provision for credit losses related to two participation loans totaling $6.0 million. Net loans receivable totaled $1.13 billion, down $8.9 million from the previous quarter. Deposits increased to $1.17 billion from $1.09 billion in Q2 2024, while net interest margin decreased to 2.46% from 2.66% in the previous quarter.
First Financial Northwest (NASDAQ: FFNW) ha registrato una perdita netta di 608.000 dollari, ovvero $(0.07) per azione diluita, per il terzo trimestre del 2024, rispetto a un utile netto di 1,6 milioni di dollari nel secondo trimestre del 2024. La perdita è stata principalmente dovuta a una provisione di 1,6 milioni di dollari per perdite su crediti relative a due prestiti di partecipazione per un totale di 6,0 milioni di dollari. I prestiti netti ammontano a 1,13 miliardi di dollari, in calo di 8,9 milioni di dollari rispetto al trimestre precedente. I depositi sono aumentati a 1,17 miliardi di dollari rispetto a 1,09 miliardi di dollari nel secondo trimestre del 2024, mentre il margine di interesse netto è diminuito al 2,46% rispetto al 2,66% del trimestre precedente.
First Financial Northwest (NASDAQ: FFNW) reportó una pérdida neta de 608,000 dólares, o $(0.07) por acción diluida, para el tercer trimestre de 2024, en comparación con una ganancia neta de 1.6 millones de dólares en el segundo trimestre de 2024. La pérdida se debió principalmente a una provisión de 1.6 millones de dólares por pérdidas crediticias relacionadas con dos préstamos de participación por un total de 6.0 millones de dólares. Los préstamos netos por cobrar ascendieron a 1.13 mil millones de dólares, una disminución de 8.9 millones de dólares respecto al trimestre anterior. Los depósitos aumentaron a 1.17 mil millones de dólares desde 1.09 mil millones de dólares en el segundo trimestre de 2024, mientras que el margen de interés neto disminuyó al 2.46% desde el 2.66% del trimestre anterior.
퍼스트 파이낸셜 노스웨스트 (NASDAQ: FFNW)는 2024년 3분기 동안 608,000달러의 순손실을 보고하였으며, 이는 희석주당 $(0.07)입니다. 이는 2024년 2분기 160만 달러의 순이익에 비해 감소한 수치입니다. 이번 손실은 600만 달러 상당의 두 개 참여 대출에 대한 160만 달러의 신용 손실 충당금이 주요 원인이었습니다. 순 대출금은 113억 달러로, 이전 분기 대비 890만 달러 감소했습니다. 예금은 2024년 2분기 10억 9000만 달러에서 11억 7000만 달러로 증가했고, 순이자 마진은 이전 분기의 2.66%에서 2.46%로 감소했습니다.
First Financial Northwest (NASDAQ: FFNW) a enregistré une perte nette de 608 000 dollars, soit $(0,07) par action diluée, pour le 3e trimestre 2024, contre un bénéfice net de 1,6 million de dollars au 2e trimestre 2024. La perte était principalement due à une provision de 1,6 million de dollars pour pertes de crédit liées à deux prêts de participation totalisant 6,0 millions de dollars. Les prêts nets à recevoir s'élevaient à 1,13 milliard de dollars, en baisse de 8,9 millions de dollars par rapport au trimestre précédent. Les dépôts ont augmenté pour atteindre 1,17 milliard de dollars, contre 1,09 milliard de dollars au 2e trimestre 2024, tandis que la marge d'intérêt nette a diminué à 2,46% contre 2,66% au trimestre précédent.
First Financial Northwest (NASDAQ: FFNW) berichtete für das 3. Quartal 2024 einen Nettoverlust von 608.000 USD oder $(0,07) je verwässerter Aktie, im Vergleich zu einem Nettogewinn von 1,6 Millionen USD im 2. Quartal 2024. Der Verlust resultierte hauptsächlich aus einer Rückstellung von 1,6 Millionen USD für Kreditausfälle im Zusammenhang mit zwei Beteiligungsdarlehen, die zusammen 6,0 Millionen USD betrugen. Die Nettoschulden beliefen sich auf 1,13 Milliarden USD, was einem Rückgang von 8,9 Millionen USD im Vergleich zum vorherigen Quartal entspricht. Die Einlagen stiegen von 1,09 Milliarden USD im 2. Quartal 2024 auf 1,17 Milliarden USD, während die Nettozinsmarge von 2,66% im vorherigen Quartal auf 2,46% sank.
- Strong credit quality with only $853,000 in nonaccrual loans (0.07% of total loan portfolio)
- Deposits increased by $79.2 million quarter-over-quarter to $1.17 billion
- Bank's Tier 1 leverage and total capital ratios remained strong at 10.9% and 16.7% respectively
- Net loss of $608,000 in Q3 2024 compared to net income of $1.6 million in Q2 2024
- Net interest margin declined to 2.46% from 2.66% in previous quarter
- $1.6 million provision for credit losses due to two troubled participation loans
- Net loans receivable decreased by $8.9 million from previous quarter
Insights
A concerning earnings report shows First Financial Northwest posting a
RENTON, Wash., Oct. 29, 2024 (GLOBE NEWSWIRE) -- 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
The net loss for the quarter was primarily the result of a
“While we recorded a provision for credit losses during the quarter ended September 30, 2024, our credit quality remained strong, with only
“We also continue to work closely with Global Federal Credit Union (“Global”) to prepare for the closing of the pending transaction and to ensure a smooth transition for our customers and employees. I truly appreciate the efforts and patience of our employees, customers, and shareholders as we await the final required approval from the National Credit Union Administration before we can close the transaction,” concluded Kiley.
Highlights for the quarter ended September 30, 2024:
- Net loans receivable totaled
$1.13 billion at September 30, 2024, down$8.9 million from the prior quarter end. - Book value per share was
$17.39 at September 30, 2024, compared to$17.51 at June 30, 2024, and$17.35 at September 30, 2023. - The Bank’s Tier 1 leverage and total capital ratios were
10.9% and16.7% at September 30, 2024, compared to10.9% and16.6% at June 30, 2024, and10.3% and16.0% at September 30, 2023, respectively. - Credit quality remained strong with nonaccrual loans totaling only
$853,000 , or0.07% of total loans. - A
$1.6 million provision for credit losses was recorded in the current quarter, compared to a$200,000 recapture of provision for credit losses in the prior quarter and a$300,000 recapture of provision for credit losses in the comparable quarter in 2023.
Deposits totaled
Advances from the FHLB totaled
The following table presents a breakdown of our total deposits (unaudited):
Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Three Month Change | One Year Change | ||||||||||||
Deposits: | (Dollars in thousands) | |||||||||||||||
Noninterest-bearing demand | $ | 100,466 | $ | 99,842 | $ | 104,164 | $ | 624 | $ | (3,698 | ) | |||||
Interest-bearing demand | 55,506 | 57,033 | 60,816 | (1,527 | ) | (5,310 | ) | |||||||||
Savings | 17,031 | 17,423 | 18,844 | (392 | ) | (1,813 | ) | |||||||||
Money market | 495,978 | 497,345 | 501,168 | (1,367 | ) | (5,190 | ) | |||||||||
Certificates of deposit, retail | 447,474 | 365,527 | 349,446 | 81,947 | 98,028 | |||||||||||
Brokered deposits | 50,900 | 51,004 | 175,972 | (104 | ) | (125,072 | ) | |||||||||
Total deposits | $ | 1,167,355 | $ | 1,088,174 | $ | 1,210,410 | $ | 79,181 | $ | (43,055 | ) | |||||
The following tables present an analysis of total deposits by branch office (unaudited):
September 30, 2024 | ||||||||||||||
Noninterest-bearing demand | Interest-bearing demand | Savings | Money market | Certificates of deposit, retail | Brokered deposits | Total | ||||||||
(Dollars in thousands) | ||||||||||||||
King County | ||||||||||||||
Renton | $ | 29,388 | $ | 14,153 | $ | 10,654 | $ | 305,836 | $ | 315,721 | $ | - | $ | 675,752 |
Landing | 3,442 | 1,660 | 237 | 8,348 | 12,733 | - | 26,420 | |||||||
Woodinville | 1,968 | 2,234 | 959 | 8,852 | 11,522 | - | 25,535 | |||||||
Bothell | 2,965 | 1,151 | 401 | 1,536 | 5,918 | - | 11,971 | |||||||
Crossroads | 14,770 | 2,039 | 107 | 31,665 | 18,136 | - | 66,717 | |||||||
Kent | 5,417 | 10,502 | 44 | 16,053 | 8,562 | - | 40,578 | |||||||
Kirkland | 10,967 | 1,890 | 206 | 11,243 | 2,240 | - | 26,546 | |||||||
Issaquah | 1,186 | 294 | 18 | 2,547 | 6,580 | - | 10,625 | |||||||
Total King County | 70,103 | 33,923 | 12,626 | 386,080 | 381,412 | - | 884,144 | |||||||
Snohomish County | ||||||||||||||
Mill Creek | 3,990 | 2,171 | 384 | 14,628 | 10,312 | - | 31,485 | |||||||
Edmonds | 9,254 | 6,831 | 330 | 18,549 | 13,281 | - | 48,245 | |||||||
Clearview | 5,587 | 5,242 | 1,462 | 21,206 | 12,251 | - | 45,748 | |||||||
Lake Stevens | 3,970 | 4,282 | 1,244 | 23,257 | 15,571 | - | 48,324 | |||||||
Smokey Point | 2,994 | 1,664 | 969 | 29,353 | 11,387 | - | 46,367 | |||||||
Total Snohomish County | 25,795 | 20,190 | 4,389 | 106,993 | 62,802 | - | 220,169 | |||||||
Pierce County | ||||||||||||||
University Place | 2,940 | 53 | 4 | 1,848 | 1,458 | - | 6,303 | |||||||
Gig Harbor | 1,628 | 1,340 | 12 | 1,057 | 1,802 | - | 5,839 | |||||||
Total Pierce County | 4,568 | 1,393 | 16 | 2,905 | 3,260 | - | 12,142 | |||||||
Brokered deposits | - | - | - | - | - | 50,900 | 50,900 | |||||||
Total deposits | $ | 100,466 | $ | 55,506 | $ | 17,031 | $ | 495,978 | $ | 447,474 | $ | 50,900 | $ | 1,167,355 |
June 30, 2024 | ||||||||||||||
Noninterest-bearing demand | Interest-bearing demand | Savings | Money market | Certificates of deposit, retail | Brokered deposits | Total | ||||||||
(Dollars in thousands) | ||||||||||||||
King County | ||||||||||||||
Renton | $ | 30,336 | $ | 14,380 | $ | 11,186 | $ | 306,176 | $ | 246,076 | $ | - | $ | 608,154 |
Landing | 2,079 | 566 | 113 | 7,895 | 9,881 | - | 20,534 | |||||||
Woodinville | 1,953 | 2,949 | 987 | 10,931 | 10,845 | - | 27,665 | |||||||
Bothell | 3,336 | 847 | 398 | 1,595 | 6,055 | - | 12,231 | |||||||
Crossroads | 13,585 | 2,858 | 28 | 25,599 | 17,748 | - | 59,818 | |||||||
Kent | 7,729 | 8,142 | 42 | 14,525 | 7,448 | - | 37,886 | |||||||
Kirkland | 8,326 | 1,789 | 210 | 15,007 | 1,752 | - | 27,084 | |||||||
Issaquah | 1,287 | 232 | 22 | 3,971 | 6,202 | - | 11,714 | |||||||
Total King County | 68,631 | 31,763 | 12,986 | 385,699 | 306,007 | - | 805,086 | |||||||
Snohomish County | ||||||||||||||
Mill Creek | 5,823 | 2,306 | 420 | 15,209 | 9,578 | - | 33,336 | |||||||
Edmonds | 10,418 | 9,470 | 402 | 20,255 | 12,753 | - | 53,298 | |||||||
Clearview | 4,810 | 4,888 | 1,444 | 18,695 | 9,504 | - | 39,341 | |||||||
Lake Stevens | 4,111 | 4,445 | 1,171 | 22,618 | 14,090 | - | 46,435 | |||||||
Smokey Point | 2,700 | 3,152 | 982 | 31,808 | 10,435 | - | 49,077 | |||||||
Total Snohomish County | 27,862 | 24,261 | 4,419 | 108,585 | 56,360 | - | 221,487 | |||||||
Pierce County | ||||||||||||||
University Place | 2,385 | 41 | 2 | 1,819 | 1,503 | - | 5,750 | |||||||
Gig Harbor | 964 | 968 | 16 | 1,242 | 1,657 | - | 4,847 | |||||||
Total Pierce County | 3,349 | 1,009 | 18 | 3,061 | 3,160 | - | 10,597 | |||||||
Brokered deposits | - | - | - | - | - | 51,004 | 51,004 | |||||||
Total deposits | $ | 99,842 | $ | 57,033 | $ | 17,423 | $ | 497,345 | $ | 365,527 | $ | 51,004 | $ | 1,088,174 |
Net loans receivable totaled
The ACL represented
Nonaccrual loans totaled
Net interest income totaled
Total interest income was
Yield on loans decreased to
Total interest expense was
Net interest margin was
Noninterest income for the quarter ended September 30, 2024, totaled
Noninterest expense totaled
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 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; 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 recession or slowed economic growth; changes in the interest rate environment, including increases or decreases in the Federal Reserve benchmark rate and duration at which such 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 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, civil unrest 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.
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
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited) | |||||||||||||||||
Assets | Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Three Month Change | One Year Change | ||||||||||||
Cash on hand and in banks | $ | 8,423 | $ | 10,811 | $ | 8,074 | (22.1 | )% | 4.3 | % | |||||||
Interest-earning deposits with banks | 72,884 | 48,173 | 49,618 | 51.3 | 46.9 | ||||||||||||
Investments available-for-sale, at fair value | 156,609 | 160,693 | 204,975 | (2.5 | ) | (23.6 | ) | ||||||||||
Investments held-to-maturity, at amortized cost | 2,462 | 2,456 | 2,450 | 0.2 | 0.5 | ||||||||||||
Loans receivable, net of allowance of | 1,126,146 | 1,135,067 | 1,168,079 | (0.8 | ) | (3.6 | ) | ||||||||||
Federal Home Loan Bank ("FHLB") stock, at cost | 5,403 | 8,823 | 6,803 | (38.8 | ) | (20.6 | ) | ||||||||||
Accrued interest receivable | 6,638 | 6,632 | 7,263 | 0.1 | (8.6 | ) | |||||||||||
Deferred tax assets, net | 2,690 | 2,360 | 3,156 | 14.0 | (14.8 | ) | |||||||||||
Premises and equipment, net | 18,584 | 19,007 | 19,921 | (2.2 | ) | (6.7 | ) | ||||||||||
Bank owned life insurance ("BOLI"), net | 38,661 | 38,368 | 37,398 | 0.8 | 3.4 | ||||||||||||
Prepaid expenses and other assets | 8,898 | 11,447 | 13,673 | (22.3 | ) | (34.9 | ) | ||||||||||
Right of use asset ("ROU"), net | 2,473 | 2,670 | 2,818 | (7.4 | ) | (12.2 | ) | ||||||||||
Goodwill | 889 | 889 | 889 | 0.0 | 0.0 | ||||||||||||
Core deposit intangible, net | 326 | 357 | 451 | (8.7 | ) | (27.7 | ) | ||||||||||
Total assets | $ | 1,451,086 | $ | 1,447,753 | $ | 1,525,568 | 0.2 | (4.9 | ) | ||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||
Deposits | |||||||||||||||||
Noninterest-bearing deposits | $ | 100,466 | $ | 99,842 | $ | 104,164 | 0.6 | (3.6 | ) | ||||||||
Interest-bearing deposits | 1,066,889 | 988,332 | 1,106,246 | 7.9 | (3.6 | ) | |||||||||||
Total deposits | 1,167,355 | 1,088,174 | 1,210,410 | 7.3 | (3.6 | ) | |||||||||||
Advances from the FHLB | 100,000 | 176,000 | 125,000 | (43.2 | ) | (20.0 | ) | ||||||||||
Advance payments from borrowers for taxes and insurance | 5,211 | 2,764 | 4,760 | 88.5 | 9.5 | ||||||||||||
Lease liability, net | 2,673 | 2,866 | 3,011 | (6.7 | ) | (11.2 | ) | ||||||||||
Accrued interest payable | 294 | 1,117 | 2,646 | (73.7 | ) | (88.9 | ) | ||||||||||
Other liabilities | 15,340 | 16,139 | 20,506 | (5.0 | ) | (25.2 | ) | ||||||||||
Total liabilities | 1,290,873 | 1,287,060 | 1,366,333 | 0.3 | (5.5 | ) | |||||||||||
Commitments and contingencies | |||||||||||||||||
Stockholders' Equity | |||||||||||||||||
Preferred stock, | - | - | - | n/a | n/a | ||||||||||||
Common stock, | |||||||||||||||||
9,213,969 shares at September 30, 2024; 9,179,825 shares at June 30, 2024; and 9,179,510 shares at September 30, 2023 | 92 | 92 | 92 | 0.0 | 0.0 | ||||||||||||
Additional paid-in capital | 72,916 | 72,953 | 72,926 | (0.1 | ) | (0.0 | ) | ||||||||||
Retained earnings | 93,692 | 94,300 | 96,206 | (0.6 | ) | (2.6 | ) | ||||||||||
Accumulated other comprehensive loss, net of tax | (6,487 | ) | (6,652 | ) | (9,989 | ) | (2.5 | ) | (35.1 | ) | |||||||
Total stockholders' equity | 160,213 | 160,693 | 159,235 | (0.3 | ) | 0.6 | |||||||||||
Total liabilities and stockholders' equity | $ | 1,451,086 | $ | 1,447,753 | $ | 1,525,568 | 0.2 | % | (4.9 | )% |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES Consolidated Income Statements (Dollars in thousands, except per share data) (Unaudited) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Three Month Change | One Year Change | |||||||||||||
Interest income | |||||||||||||||||
Loans, including fees | $ | 16,658 | $ | 16,805 | $ | 16,918 | (0.9 | )% | (1.5 | )% | |||||||
Investments | 1,744 | 1,886 | 2,118 | (7.5 | ) | (17.7 | ) | ||||||||||
Interest-earning deposits with banks | 863 | 482 | 525 | 79.0 | 64.4 | ||||||||||||
Dividends on FHLB Stock | 150 | 144 | 113 | 4.2 | 32.7 | ||||||||||||
Total interest income | 19,415 | 19,317 | 19,674 | 0.5 | (1.3 | ) | |||||||||||
Interest expense | |||||||||||||||||
Deposits | 9,748 | 9,498 | 9,205 | 2.6 | 5.9 | ||||||||||||
Other borrowings | 1,213 | 849 | 766 | 42.9 | 58.4 | ||||||||||||
Total interest expense | 10,961 | 10,347 | 9,971 | 5.9 | 9.9 | ||||||||||||
Net interest income | 8,454 | 8,970 | 9,703 | (5.8 | ) | (12.9 | ) | ||||||||||
Provision (recapture of provision) for credit losses | 1,575 | (200 | ) | (300 | ) | (887.5 | ) | (625.0 | ) | ||||||||
Net interest income after provision (recapture of provision) for credit losses | 6,879 | 9,170 | 10,003 | (25.0 | ) | (31.2 | ) | ||||||||||
Noninterest income | |||||||||||||||||
BOLI income | 295 | 310 | 244 | (4.8 | ) | 20.9 | |||||||||||
Wealth management revenue | 42 | 54 | 53 | (22.2 | ) | (20.8 | ) | ||||||||||
Deposit related fees | 236 | 240 | 247 | (1.7 | ) | (4.5 | ) | ||||||||||
Loan related fees | 96 | 97 | 79 | (1.0 | ) | 21.5 | |||||||||||
Other income (expense), net | 8 | (28 | ) | 54 | (128.6 | ) | (85.2 | ) | |||||||||
Total noninterest income | 677 | 673 | 677 | 0.6 | 0.0 | ||||||||||||
Noninterest expense | |||||||||||||||||
Salaries and employee benefits | 4,606 | 3,817 | 5,018 | 20.7 | (8.2 | ) | |||||||||||
Occupancy and equipment | 1,183 | 1,225 | 1,193 | (3.4 | ) | (0.8 | ) | ||||||||||
Professional fees | 585 | 749 | 553 | (21.9 | ) | 5.8 | |||||||||||
Data processing | 838 | 856 | 742 | (2.1 | ) | 12.9 | |||||||||||
Regulatory assessments | 165 | 170 | 200 | (2.9 | ) | (17.5 | ) | ||||||||||
Insurance and bond premiums | 113 | 118 | 111 | (4.2 | ) | 1.8 | |||||||||||
Marketing | 46 | 47 | 97 | (2.1 | ) | (52.6 | ) | ||||||||||
Other general and administrative | 952 | 959 | 856 | (0.7 | ) | 11.2 | |||||||||||
Total noninterest expense | 8,488 | 7,941 | 8,770 | 6.9 | (3.2 | ) | |||||||||||
(Loss) income before federal income tax (benefit) provision | (932 | ) | 1,902 | 1,910 | (149.0 | ) | (148.8 | ) | |||||||||
Federal income tax (benefit) provision | (324 | ) | 347 | 409 | (193.4 | ) | (179.2 | ) | |||||||||
Net (loss) income | $ | (608 | ) | $ | 1,555 | $ | 1,501 | (139.1 | )% | (140.5 | )% | ||||||
Basic (loss) earnings per share | $ | (0.07 | ) | $ | 0.17 | $ | 0.16 | ||||||||||
Diluted (loss) earnings per share | $ | (0.07 | ) | $ | 0.17 | $ | 0.16 | ||||||||||
Weighted average number of common shares outstanding | 9,190,146 | 9,168,414 | 9,127,568 | ||||||||||||||
Weighted average number of diluted shares outstanding | 9,190,146 | 9,235,446 | 9,150,059 | ||||||||||||||
The following table presents a breakdown of the loan portfolio (unaudited):
September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Residential: | ||||||||||||||||||||
Multifamily | $ | 132,811 | 11.6 | % | $ | 134,302 | 11.7 | % | $ | 140,022 | 11.7 | % | ||||||||
Total multifamily residential | 132,811 | 11.6 | 134,302 | 11.7 | 140,022 | 11.7 | ||||||||||||||
Non-residential: | ||||||||||||||||||||
Retail | 118,840 | 10.4 | 118,154 | 10.4 | 130,101 | 11.0 | ||||||||||||||
Office | 73,778 | 6.5 | 74,032 | 6.4 | 72,773 | 6.1 | ||||||||||||||
Hotel / motel | 54,716 | 4.8 | 55,018 | 4.8 | 63,954 | 5.4 | ||||||||||||||
Storage | 32,443 | 2.8 | 32,636 | 2.8 | 33,229 | 2.8 | ||||||||||||||
Mobile home park | 22,443 | 2.0 | 23,159 | 2.0 | 21,285 | 1.8 | ||||||||||||||
Warehouse | 18,743 | 1.6 | 18,868 | 1.6 | 19,446 | 1.6 | ||||||||||||||
Nursing Home | 11,407 | 1.0 | 11,474 | 1.0 | 11,676 | 1.0 | ||||||||||||||
Other non-residential | 30,719 | 2.7 | 32,139 | 2.8 | 42,227 | 3.7 | ||||||||||||||
Total non-residential | 363,089 | 31.8 | 365,480 | 31.8 | 394,691 | 33.4 | ||||||||||||||
Construction/land: | ||||||||||||||||||||
One-to-four family residential | 42,846 | 3.8 | 39,908 | 3.5 | 43,532 | 3.7 | ||||||||||||||
Multifamily | 7,227 | 0.6 | 6,078 | 0.5 | 2,043 | 0.2 | ||||||||||||||
Land development | 10,148 | 0.8 | 9,800 | 0.8 | 9,766 | 0.8 | ||||||||||||||
Total construction/land | 60,221 | 5.2 | 55,786 | 4.8 | 55,341 | 4.7 | ||||||||||||||
One-to-four family residential: | ||||||||||||||||||||
Permanent owner occupied | 279,744 | 24.5 | 283,516 | 24.7 | 260,970 | 22.1 | ||||||||||||||
Permanent non-owner occupied | 221,127 | 19.4 | 225,423 | 19.6 | 232,238 | 19.6 | ||||||||||||||
Total one-to-four family residential | 500,871 | 43.9 | 508,939 | 44.3 | 493,208 | 41.7 | ||||||||||||||
Business: | ||||||||||||||||||||
Aircraft | - | 0.0 | - | 0.0 | 1,981 | 0.2 | ||||||||||||||
Small Business Administration ("SBA") | 1,745 | 0.2 | 1,763 | 0.2 | 1,810 | 0.3 | ||||||||||||||
Paycheck Protection Plan ("PPP") | 238 | 0.0 | 316 | 0.0 | 551 | 0.0 | ||||||||||||||
Other business | 12,416 | 1.1 | 12,984 | 1.1 | 23,633 | 1.9 | ||||||||||||||
Total business | 14,399 | 1.3 | 15,063 | 1.3 | 27,975 | 2.4 | ||||||||||||||
Consumer: | ||||||||||||||||||||
Classic, collectible and other auto | 58,085 | 5.1 | 56,758 | 4.9 | 59,955 | 5.1 | ||||||||||||||
Other consumer | 12,935 | 1.1 | 13,535 | 1.2 | 12,193 | 1.0 | ||||||||||||||
Total consumer | 71,020 | 6.2 | 70,293 | 6.1 | 72,148 | 6.1 | ||||||||||||||
Total loans | 1,142,411 | 100.0 | % | 1,149,863 | 100.0 | % | 1,183,385 | 100.0 | % | |||||||||||
Less: | ||||||||||||||||||||
ACL | 16,265 | 14,796 | 15,306 | |||||||||||||||||
Loans receivable, net | $ | 1,126,146 | $ | 1,135,067 | $ | 1,168,079 | ||||||||||||||
Concentrations of credit: (1) | ||||||||||||||||||||
Construction loans as % of total capital | 36.8 | % | 34.8 | % | 37.8 | % | ||||||||||||||
Total non-owner occupied commercial real estate as % of total capital | 296.2 | % | 298.8 | % | 328.1 | % | ||||||||||||||
(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 | |||||||||||||||||||
Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
Performance Ratios: (1) | |||||||||||||||||||
Return on assets | (0.17 | )% | 0.43 | % | (0.29 | )% | 0.31 | % | 0.39 | % | |||||||||
Return on equity | (1.50 | ) | 3.88 | (2.67 | ) | 2.97 | 3.71 | ||||||||||||
Dividend payout ratio | 0.00 | 76.47 | (108.33 | ) | 100.00 | 79.26 | |||||||||||||
Equity-to-assets ratio | 11.04 | 11.10 | 10.91 | 10.74 | 10.44 | ||||||||||||||
Tangible equity ratio (2) | 10.97 | 11.02 | 10.83 | 10.66 | 10.36 | ||||||||||||||
Net interest margin | 2.46 | 2.66 | 2.55 | 2.54 | 2.69 | ||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 116.46 | 117.01 | 116.40 | 115.84 | 116.94 | ||||||||||||||
Efficiency ratio | 92.96 | 82.35 | 116.97 | 85.17 | 84.49 | ||||||||||||||
Noninterest expense as a percent of average total assets | 2.32 | 2.21 | 3.05 | 2.18 | 2.29 | ||||||||||||||
Book value per common share | $ | 17.39 | $ | 17.51 | $ | 17.46 | $ | 17.61 | $ | 17.35 | |||||||||
Tangible book value per share (2) | 17.26 | 17.37 | 17.32 | 17.47 | 17.20 | ||||||||||||||
Capital Ratios: (3) | |||||||||||||||||||
Tier 1 leverage ratio | 10.86 | % | 10.91 | % | 10.41 | % | 10.18 | % | 10.25 | % | |||||||||
Common equity tier 1 capital ratio | 15.43 | 15.39 | 14.98 | 14.90 | 14.75 | ||||||||||||||
Tier 1 capital ratio | 15.43 | 15.39 | 14.98 | 14.90 | 14.75 | ||||||||||||||
Total capital ratio | 16.68 | 16.64 | 16.24 | 16.15 | 16.00 | ||||||||||||||
Asset Quality Ratios: (4) | |||||||||||||||||||
Nonaccrual loans as a percent of total loans | 0.07 | % | 0.41 | % | 0.02 | % | 0.02 | % | 0.02 | % | |||||||||
Nonaccrual loans as a percent of total assets | 0.06 | 0.32 | 0.01 | 0.01 | 0.01 | ||||||||||||||
ACL as a percent of total loans | 1.42 | 1.29 | 1.30 | 1.28 | 1.29 | ||||||||||||||
Net charge-offs to average loans receivable, net | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||
ACL ‒ loans | |||||||||||||||||||
Beginning balance | $ | 14,796 | $ | 14,996 | $ | 15,306 | $ | 15,306 | $ | 15,606 | |||||||||
Provision (recapture of provision) for credit losses | 1,500 | (200 | ) | (300 | ) | - | (300 | ) | |||||||||||
Charge-offs | (31 | ) | - | (10 | ) | - | - | ||||||||||||
Recoveries | - | - | - | - | - | ||||||||||||||
Ending balance | $ | 16,265 | $ | 14,796 | $ | 14,996 | $ | 15,306 | $ | 15,306 | |||||||||
Allowance for unfunded commitments | |||||||||||||||||||
Beginning balance | $ | 564 | $ | 564 | $ | 439 | $ | 439 | $ | 439 | |||||||||
Provision for credit losses | 75 | - | 125 | - | - | ||||||||||||||
Ending balance | $ | 639 | $ | 564 | $ | 564 | $ | 439 | $ | 439 | |||||||||
Provision (recapture of provision) for credit losses | |||||||||||||||||||
ACL - loans | $ | 1,500 | $ | (200 | ) | $ | (300 | ) | $ | - | $ | (300 | ) | ||||||
Allowance for unfunded commitments | 75 | - | 125 | - | - | ||||||||||||||
Total | $ | 1,575 | $ | (200 | ) | $ | (175 | ) | $ | - | $ | (300 | ) | ||||||
(1) Performance ratios are calculated on an annualized basis.
(2) 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 (Unaudited) | |||||||||||||||||||
At or For the Quarter Ended | |||||||||||||||||||
Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Yields and Costs: (1) | |||||||||||||||||||
Yield on loans | 5.86 | % | 5.93 | % | 5.88 | % | 5.83 | % | 5.73 | % | |||||||||
Yield on investments | 4.30 | 4.38 | 4.11 | 4.11 | 3.98 | ||||||||||||||
Yield on interest-earning deposits | 5.27 | 5.25 | 5.28 | 5.32 | 5.18 | ||||||||||||||
Yield on FHLB stock | 7.73 | 8.63 | 7.79 | 7.29 | 6.57 | ||||||||||||||
Yield on interest-earning assets | 5.66 | % | 5.73 | % | 5.62 | % | 5.56 | % | 5.46 | % | |||||||||
Cost of interest-bearing deposits | 3.80 | % | 3.71 | % | 3.69 | % | 3.62 | % | 3.33 | % | |||||||||
Cost of borrowings | 3.19 | 2.64 | 2.65 | 2.40 | 2.42 | ||||||||||||||
Cost of interest-bearing liabilities | 3.72 | % | 3.59 | % | 3.58 | % | 3.50 | % | 3.24 | % | |||||||||
Cost of total deposits (2) | 3.47 | % | 3.38 | % | 3.38 | % | 3.31 | % | 3.03 | % | |||||||||
Cost of funds (3) | 3.44 | % | 3.30 | % | 3.31 | % | 3.23 | % | 2.97 | % | |||||||||
Average Balances: | |||||||||||||||||||
Loans | $ | 1,131,473 | $ | 1,139,017 | $ | 1,160,156 | $ | 1,167,339 | $ | 1,171,483 | |||||||||
Investments | 161,232 | 173,102 | 202,106 | 206,837 | 211,291 | ||||||||||||||
Interest-earning deposits | 65,149 | 36,959 | 37,032 | 65,680 | 40,202 | ||||||||||||||
FHLB stock | 7,719 | 6,714 | 6,554 | 6,584 | 6,820 | ||||||||||||||
Total interest-earning assets | $ | 1,365,573 | $ | 1,355,792 | $ | 1,405,848 | $ | 1,446,440 | $ | 1,429,796 | |||||||||
Interest-bearing deposits | $ | 1,021,041 | $ | 1,029,608 | $ | 1,082,168 | $ | 1,127,690 | $ | 1,097,324 | |||||||||
Borrowings | 151,478 | 129,126 | 125,604 | 120,978 | 125,402 | ||||||||||||||
Total interest-bearing liabilities | 1,172,519 | 1,158,734 | 1,207,772 | 1,248,668 | 1,222,726 | ||||||||||||||
Noninterest-bearing deposits | 96,003 | 101,196 | 99,173 | 102,869 | 109,384 | ||||||||||||||
Total deposits and borrowings | $ | 1,268,522 | $ | 1,259,930 | $ | 1,306,945 | $ | 1,351,537 | $ | 1,332,110 | |||||||||
Average assets | $ | 1,453,431 | $ | 1,446,207 | $ | 1,495,753 | $ | 1,538,955 | $ | 1,522,224 | |||||||||
Average stockholders' equity | 161,569 | 161,057 | 161,823 | 159,659 | 160,299 | ||||||||||||||
(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 (“GAAP”) utilized in the United States, 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 | |||||||||||||||||||
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
Tangible equity to tangible assets and tangible book value per share: | |||||||||||||||||||
Total stockholders' equity (GAAP) | $ | 160,213 | $ | 160,693 | $ | 160,183 | $ | 161,660 | $ | 159,235 | |||||||||
Less: | |||||||||||||||||||
Goodwill | 889 | 889 | 889 | 889 | 889 | ||||||||||||||
Core deposit intangible, net | 326 | 357 | 388 | 419 | 451 | ||||||||||||||
Tangible equity (Non-GAAP) | $ | 158,998 | $ | 159,447 | $ | 158,906 | $ | 160,352 | $ | 157,895 | |||||||||
Total assets (GAAP) | $ | 1,451,086 | $ | 1,447,753 | $ | 1,468,350 | $ | 1,505,082 | $ | 1,525,568 | |||||||||
Less: | |||||||||||||||||||
Goodwill | 889 | 889 | 889 | 889 | 889 | ||||||||||||||
Core deposit intangible, net | 326 | 357 | 388 | 419 | 451 | ||||||||||||||
Tangible assets (Non-GAAP) | $ | 1,449,871 | $ | 1,446,507 | $ | 1,467,073 | $ | 1,503,774 | $ | 1,524,228 | |||||||||
Common shares outstanding at period end | 9,213,969 | 9,179,825 | 9,174,425 | 9,179,510 | 9,179,510 | ||||||||||||||
Equity-to-assets ratio (GAAP) | 11.04 | % | 11.10 | % | 10.91 | % | 10.74 | % | 10.44 | % | |||||||||
Tangible equity-to-tangible assets ratio (Non-GAAP) | 10.97 | 11.02 | 10.83 | 10.66 | 10.36 | ||||||||||||||
Book value per common share (GAAP) | $ | 17.39 | $ | 17.51 | $ | 17.46 | $ | 17.61 | $ | 17.35 | |||||||||
Tangible book value per share (Non-GAAP) | 17.26 | 17.37 | 17.32 | 17.47 | 17.20 |
FAQ
What was First Financial Northwest's (FFNW) earnings per share in Q3 2024?
What caused FFNW's net loss in Q3 2024?
What was FFNW's deposit total as of September 30, 2024?