Global Credit Union and First Financial Northwest, Inc. Announce Receipt of Final Regulatory Approval for Transaction

Rhea-AI Summary

Global Federal Credit Union and First Financial Northwest (NASDAQ: FFNW) announced receiving final regulatory approval from the National Credit Union Administration for Global's acquisition of First Financial Northwest Bank's assets and liabilities. The transaction, initially agreed upon on January 10, 2024, is expected to complete in early Q2 2025.

The deal will expand Global's commercial services and branch presence in Western Washington. First Financial Northwest Bank customers will become Global members, accessing their product and service offerings. Following the acquisition, First Financial Northwest Inc. will wind up operations and distribute remaining assets to shareholders, with initial distribution planned shortly after deal completion.

Global will operate First Financial's locations as a separate branded division until completing system and brand integration later in 2025. The Bank has maintained previous approvals from the Federal Deposit Insurance and Washington State Department of Financial Institutions.

Positive

• Regulatory approvals secured from all required authorities
• Expansion of commercial services and branch network in Western Washington
• Planned distribution of remaining assets to shareholders

Negative

• FFNW will cease to exist as an independent entity
• Shareholders must wait for multiple distributions over time instead of immediate full payment

Insights

Financial Analyst

Global Federal Credit Union has secured final regulatory approval from the National Credit Union Administration for its acquisition of First Financial Northwest Bank (FFNW), marking a important milestone toward completing the transaction. The deal, initially announced in January 2024, is now expected to close in early Q2 2025, with only remaining closing conditions to be satisfied.

This regulatory approval removes a significant hurdle and provides certainty for FFNW shareholders regarding the transaction's trajectory. Importantly, following the asset sale, First Financial Northwest Inc. will wind up operations and distribute remaining net assets to shareholders through multiple distributions, with an initial payout expected shortly after transaction completion.

For shareholders, this development establishes a clearer timeline for liquidity events, though specific distribution amounts remain undisclosed. The approved transaction structure appears to follow the original agreement terms, suggesting no regulatory-imposed modifications that might have affected shareholder value.

The acquisition expands Global's commercial banking capabilities and strengthens its presence in Western Washington. Meanwhile, FFNW customers will gain access to Global's broader product offerings while maintaining continuity through the transitional period, as locations will operate as a separately branded division until system integration later in 2025.

ANCHORAGE, Alaska and RENTON, Wash., March 12, 2025 (GLOBE NEWSWIRE) -- Global Federal Credit Union (“Global”) and First Financial Northwest, Inc. (the “Company”) (NASDAQ GS: FFNW), the holding company for First Financial Northwest Bank (the “Bank”), jointly announced today that Global received the required regulatory approval from the National Credit Union Administration (“NCUA”) for its acquisition of substantially all of the assets and assumption of substantially all of the liabilities (including deposit liabilities) of the Bank (the “Asset Sale”), on the terms and subject to the conditions of the Purchase and Assumption Agreement, dated as of January 10, 2024, by and among the Company, the Bank and Global (the “Agreement”). The Bank previously received and has maintained approvals from the Federal Deposit Insurance Corporation and Washington State Department of Financial Institutions.

The Asset Sale is expected to be completed early in the second quarter of 2025, subject to the satisfaction or waiver of the remaining closing conditions set forth in the Agreement. Global will operate the locations of the Bank as a separately branded division of Global until the system and brand integration is completed later in 2025. The transaction will expand Global’s business and commercial services to all its member businesses as well as enhance its branch presence in Western Washington, where it first began operations in the Pacific Northwest over 40 years ago. First Financial Northwest Bank customers will become members of Global Federal Credit Union with full access to Global’s extensive product and service offerings.

“This is an exciting milestone for the members, future members, and employees of our two financial institutions,” said Geoff Lundfelt, President and CEO of Global Federal Credit Union. “Our combined commitment to service and community, our commitment towards delivering technology-forward services, and our ability to offer expanded business and commercial financial products is going to be significantly enhanced. I’m really looking forward to showing the customers of First Financial Northwest Bank what it means to have access to the world-class service that Global members currently enjoy.”

Subsequent to the Asset Sale, the Company will take all necessary action to wind up its affairs; distribute its remaining net assets, including the remaining net cash proceeds from the purchase price paid by Global, to the Company shareholders in multiple distributions; and dissolve under applicable Washington law. An initial distribution to Company shareholders is expected to occur shortly after the completion of the transaction.

“Both institutions are working to ensure a seamless transition for First Financial Northwest Bank customers as they become members of Global Federal Credit Union,” said Joseph W. Kiley III, President and CEO of First Financial Northwest, Inc. “Receiving regulatory approval from the NCUA allows us to take the next step in this strategic alliance that we expect will benefit the financial future of the community.”

About Global Federal Credit Union

Global Federal Credit Union is a not-for-profit, member-owned financial cooperative with the mission of enriching lives through world-class financial services. Global was founded in 1948 at the Alaska Air Depot, and now serves more than 750,000 members online and more than 70 branches across Washington, Alaska, Idaho, California, Arizona, as well as branches on three U.S. military installations in Italy. Learn more at globalcu.org.

About First Financial Northwest

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. Visit ffnwb.com and click on the “Investor Relations” link at the bottom of the page for more information.

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 shareholder 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 whereby Global, pursuant to the 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 Agreement; delays in completing the transactions contemplated by the Agreement; the failure to satisfy any of the conditions to the Global transaction 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 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, including repricing and competitors’ pricing initiatives, and their impact on our market position, loan and deposit products; 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 potential imposition of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; 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 SEC – 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.

Global Credit Union
Media Contact
Tim Woolston
Senior Vice President, Marketing
907-317-9454
t.woolston@globalcu.org

First Financial Northwest, Inc.
Investor Contacts
Joseph W. Kiley III
President and Chief Executive Officer
Rich Jacobson
Executive Vice President and Chief Financial Officer
425-255-4400

FAQ

When will Global Federal Credit Union complete the acquisition of First Financial Northwest Bank (FFNW)?

The acquisition is expected to complete in early Q2 2025, subject to remaining closing conditions.

What happens to FFNW shareholders after the Global Federal Credit Union acquisition?

Shareholders will receive multiple distributions of remaining net assets, with initial distribution occurring shortly after transaction completion.

How will First Financial Northwest Bank (FFNW) customers be affected by the Global acquisition?

Customers will become Global Federal Credit Union members with full access to Global's products and services.

How long will FFNW branches maintain separate branding under Global Federal Credit Union?

Branches will operate as a separately branded division until system and brand integration completes later in 2025.