First Northwest Bancorp Reports First Quarter 2024 Financial Results
- The company returned to profitability in Q1 2024, driven by balance sheet restructuring efforts.
- Over $90 million in market rate loans and securities were added in the first quarter.
- A sale-leaseback transaction for six branches is planned for the second quarter to increase net interest margin and profitability.
- Expense management was a focus, along with small business lending and digital banking enhancements.
- Share repurchase plans were completed, and a new stock buyback plan for 10% of outstanding shares was approved.
- A quarterly cash dividend of $0.07 per common share was declared, payable on May 24, 2024.
- Financial results showed a significant improvement in net income, operating expenses, and revenue compared to the previous quarter.
- Loans grew by $51.4 million, and customer deposits increased by 0.4% while reliance on brokered deposits decreased by 7.4%.
- Asset quality metrics remained stable, with nonperforming assets and classified loans at consistent levels.
- Key financial ratios, including return on average assets, return on equity, and net interest margin, showed positive trends.
- None.
Insights
The announcement from First Northwest Bancorp outlines a strategic shift towards profitability, marking a pivot from the loss reported in the previous quarter. The financial results show the company's resilience and adaptability in managing its balance sheet. This is evidenced by a disciplined approach to expense management, resulting in a noticeable decrease in noninterest expense. The repurchase of significant amounts of its own stock indicates the management's confidence in the company's value, potentially leading to an increase in earnings per share.
From an investor's perspective, this could signal underlying strength in the company's operations and the potential for increased shareholder value. The decline in term deposits and an increase in non-maturity deposits may also reflect a strategic shift towards more stable funding sources. However, investors would need to watch the net interest margin closely, as it has experienced a decline, which could impact profitability if the trend continues.
The regional banking sector, where First Northwest Bancorp operates, is often influenced by local economic conditions. The bank's strategy to reduce reliance on term deposits and increase current market rate loans and securities could be construed as an agile response to the prevailing interest rate environment. This is complemented by their efforts to enhance digital banking platforms, which aligns with industry-wide trends towards digital transformation and could improve customer retention and attract new clients.
As an investor, observing the bank's progress in the small business lending program could shed light on its potential growth in a niche market that is typically underserved by larger institutions. The balance sheet restructuring and sale-leaseback transactions are also noteworthy as they could streamline the bank's operations and reduce overhead costs in the long term.
The financial report indicates that the bank has maintained stable asset quality with no significant increase in classified loans. It's imperative to understand this particular component, as a bank's health is often judged by its loan portfolio's quality. A zero total reserve for the identified impaired loans suggests that the collateral value is adequate, which is reassuring for risk-conscious investors. Nonetheless, vigilance is warranted given the current economic uncertainties.
Moreover, the approval of a new stock buyback plan could be perceived as a strategic move to enhance shareholder value, but it also reflects the bank's solid capital position, which is important for weathering potential downturns. This sort of proactive financial maneuvering is indicative of a robust governance structure that might bode well for long-term investors looking for stability in their investments.
PORT ANGELES, Wash., April 25, 2024 (GLOBE NEWSWIRE) -- "The company returned to profitability in Q1 2024 following the first step of our balance sheet restructure in the fourth quarter of 2023," said Matthew P. Deines, President and CEO. "We continue to execute on this strategy as we added over
"We are making good progress on our small business lending program, operating accounts for small to medium sized businesses and an enhancement to our digital business banking platform. We are also focused on reducing our reliance on term deposits, both brokered and retail. Term deposits decreased during the quarter by
"We completed our 2020 stock buyback plan during the quarter and to date have repurchased over
The Board of Directors of First Northwest Bancorp declared a quarterly cash dividend of
2024 FINANCIAL RESULTS | 1Q 24 | 4Q 23 | 1Q 23 | |||||||||
OPERATING RESULTS (in millions) | ||||||||||||
Net income (loss) | $ | 0.4 | $ | (5.5 | ) | $ | 3.5 | |||||
Pre-provision net interest income | 13.9 | 14.2 | 16.3 | |||||||||
Noninterest expense | 14.3 | 17.0 | 14.9 | |||||||||
Total revenue, net of interest expense * | 16.1 | 11.3 | 18.6 | |||||||||
PER SHARE DATA | ||||||||||||
Basic and diluted earnings (loss) | $ | 0.04 | $ | (0.62 | ) | $ | 0.39 | |||||
Book value | 17.00 | 16.99 | 16.57 | |||||||||
Tangible book value * | 16.83 | 16.83 | 16.38 | |||||||||
BALANCE SHEET (in millions) | ||||||||||||
Total assets | $ | 2,240 | $ | 2,202 | $ | 2,172 | ||||||
Total loans | 1,711 | 1,660 | 1,579 | |||||||||
Total deposits | 1,667 | 1,677 | 1,594 | |||||||||
Total shareholders' equity | 161 | 163 | 160 | |||||||||
ASSET QUALITY | ||||||||||||
Net charge-off ratio (1) | 0.19 | % | 0.14 | % | 0.25 | % | ||||||
Nonperforming assets to total assets | 0.87 | 0.85 | 0.12 | |||||||||
Allowance for credit losses on loans | ||||||||||||
to total loans | 1.05 | 1.05 | 1.10 | |||||||||
Nonaccrual loan coverage ratio | 92 | 94 | 661 | |||||||||
SELECTED RATIOS | ||||||||||||
Return on average assets (1) | 0.07 | % | -1.03 | % | 0.70 | % | ||||||
Return on average equity (1) | 0.98 | -14.05 | 8.98 | |||||||||
Return on average tangible equity (1) * | 0.99 | -14.20 | 9.08 | |||||||||
Net interest margin | 2.76 | 2.84 | 3.46 | |||||||||
Efficiency ratio | 88.75 | 150.81 | 79.78 | |||||||||
Bank common equity tier 1 (CETI) ratio | 12.56 | 13.12 | 13.34 | |||||||||
Bank total risk-based capital ratio | 13.57 | 14.11 | 14.35 |
(1) Performance ratios are annualized, where appropriate.
* See reconciliation of Non-GAAP Financial Measures later in this release.
2024 Highlights | |
• | First Fed Bank ("First Fed" or "Bank") continues to restructure the balance sheet to improve the yield on earning assets. |
- During the first quarter, First Fed purchased | |
- Executed a new loan hedge that added 3 basis points to the net interest margin in the first quarter. | |
- Initiated conversion of lower-yielding bank-owned life insurance ("BOLI") policies expected to be finalized in the third quarter. | |
- Improved earning assets yield by 15 basis points over the prior quarter to | |
• | Loans grew during the first quarter by |
• | The Company added Sean Brennan, an experienced banker bringing additional industry insights, to the Board of Directors. |
• | Hired seasoned professionals to lead digital innovation and commercial business lending. |
• | Repurchased 214,132 shares of Company stock during the quarter, which closed out the October 2020 Stock Repurchase Plan. |
• | New share repurchase plan approved in April 2024 authorizing the repurchase of |
• | Customer deposits increased |
• | Estimated insured deposits totaled |
• | Classified loans remained flat compared to December 31, 2023, at |
• | Expense management resulted in operating expenses of |
First Northwest Bancorp (Nasdaq: FNWB) ("First Northwest" or "Company") today reported net income of
The Bank continued efforts to restructure the balance sheet to improve the earning asset yield, which started in the fourth quarter of 2023. Investment security purchases during the first quarter of 2024 totaled
Also in the first quarter of 2024, we established a fair value hedge on loans to manage ongoing interest rate risk by reducing liability sensitivity while also increasing interest income. It is a four-year fixed-for-floating contract. We estimate that if rates remain flat, this hedge will add
The balance sheet restructure plan also includes the surrender of
In addition to our new board member, Sean Brennan, First Fed added two new executive roles to foster a sharpened focus on digital and strategic initiatives and welcomes an additional Director of Commercial Banking. The Chief Innovation Officer, David Edelstein, will lead digital banking, technology, data, and fintech partnerships. Mr. Edelstein brings more than 25 years of leadership experience in financial services and technology. In addition, Chris Riffle was promoted to Chief Strategy Officer, and will focus on First Fed’s strategic initiatives with specific emphasis on planning and optimization of systems, teams, and processes. These new roles strengthen our commitment to deliver outstanding customer experiences by combining our trusted local presence with digital solutions. Charlie Guildner is expected to join the commercial banking team in the second quarter of 2024 to lead the North Cascades region and drive commercial business loan growth. Mr. Guildner has nearly 40 years of community banking experience, including having served President and CEO of North Cascades Bank.
Net Interest Income
Total interest income increased
Total interest expense increased
Net interest income before provision for credit losses for the first quarter of 2024 decreased
The Company recorded a
The net interest margin decreased to
The yield on average earning assets for the first quarter of 2024 increased 15 basis points to
The cost of average interest-bearing liabilities increased 27 basis points to
Current quarter increases were due to higher costs on interest-bearing customer deposits due to competitive pressures related to continued higher market rates and migration from lower costing deposits to higher yield money market accounts. The volume of brokered CDs decreased to
The increase over the same quarter last year was driven by higher rates paid on deposits and borrowings and higher average CD balances. The Company attracted and retained funding through the use of promotional products and a focus on digital account acquisition during 2023. The mix of retail deposit balances shifted from no or low-cost transaction accounts towards higher cost term certificate and higher yield money market and savings products. Retail CDs represented
Selected Yields | 1Q 24 | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | |||||||||||||||
Loan yield | 5.51 | % | 5.38 | % | 5.31 | % | 5.38 | % | 5.16 | % | ||||||||||
Investment securities yield | 4.75 | 4.53 | 4.18 | 4.09 | 3.93 | |||||||||||||||
Cost of interest-bearing deposits | 2.86 | 2.52 | 2.22 | 1.87 | 1.37 | |||||||||||||||
Cost of total deposits | 2.43 | 2.12 | 1.85 | 1.54 | 1.12 | |||||||||||||||
Cost of borrowed funds | 4.52 | 4.50 | 4.45 | 4.36 | 3.92 | |||||||||||||||
Net interest spread | 2.28 | 2.40 | 2.54 | 2.84 | 3.14 | |||||||||||||||
Net interest margin | 2.76 | 2.84 | 2.97 | 3.25 | 3.46 | |||||||||||||||
Noninterest Income
Noninterest income increased to
Noninterest income decreased
Noninterest Income | ||||||||||||||||||||
$ in thousands | 1Q 24 | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | |||||||||||||||
Loan and deposit service fees | $ | 1,102 | $ | 1,068 | $ | 1,068 | 1,064 | $ | 1,141 | |||||||||||
Sold loan servicing fees and servicing rights mark-to-market | 219 | 276 | 98 | (191 | ) | 493 | ||||||||||||||
Net gain on sale of loans | 52 | 33 | 171 | 58 | 176 | |||||||||||||||
Net (loss) gain on sale of investment securities | — | (5,397 | ) | — | — | — | ||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 243 | 260 | 252 | 190 | 226 | |||||||||||||||
Other income | 572 | 831 | 1,315 | 590 | 298 | |||||||||||||||
Total noninterest income | $ | 2,188 | $ | (2,929 | ) | $ | 2,904 | $ | 1,711 | $ | 2,334 | |||||||||
Noninterest Expense
Noninterest expense totaled
The decrease in total noninterest expenses compared to the first quarter of 2023 is mainly due to lower advertising costs. The Company continues to focus on controlling compensation expense and reducing advertising and other discretionary spending while the net interest margin compression due to higher market rates and an inverted yield curve persists. We do not anticipate a recurrence of any of the one-time charges referred to previously.
Noninterest Expense | ||||||||||||||||||||
$ in thousands | 1Q 24 | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | |||||||||||||||
Compensation and benefits | $ | 8,128 | $ | 7,397 | $ | 7,795 | $ | 8,180 | $ | 7,837 | ||||||||||
Data processing | 1,944 | 2,107 | 1,945 | 2,080 | 2,038 | |||||||||||||||
Occupancy and equipment | 1,240 | 1,262 | 1,173 | 1,214 | 1,209 | |||||||||||||||
Supplies, postage, and telephone | 293 | 351 | 292 | 435 | 355 | |||||||||||||||
Regulatory assessments and state taxes | 513 | 376 | 446 | 424 | 389 | |||||||||||||||
Advertising | 309 | 235 | 501 | 929 | 1,041 | |||||||||||||||
Professional fees | 910 | 1,119 | 929 | 884 | 806 | |||||||||||||||
FDIC insurance premium | 386 | 418 | 369 | 313 | 257 | |||||||||||||||
Other expense | 580 | 3,725 | 926 | 758 | 939 | |||||||||||||||
Total noninterest expense | $ | 14,303 | $ | 16,990 | $ | 14,376 | $ | 15,217 | $ | 14,871 | ||||||||||
Efficiency ratio | 88.75 | % | 150.81 | % | 80.52 | % | 86.01 | % | 79.78 | % | ||||||||||
Investment Securities
Investment securities increased
The estimated average life of the securities portfolio was approximately 7.78 years, compared to 7.69 years in the prior quarter and 8.08 years in the first quarter of 2023. The effective duration of the portfolio was approximately 4.41 years at March 31, 2024, compared to 4.75 years in the prior quarter and 5.08 years at the end of the first quarter of 2023. Our recent investments have primarily been floating rate securities to take advantage of higher short-term rates above those offered on cash and to reduce our liability sensitivity.
Investment Securities Available for Sale, at Fair Value | ||||||||||||||||||||
$ in thousands | 1Q 24 | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | |||||||||||||||
Municipal bonds | $ | 87,004 | $ | 87,761 | $ | 93,995 | $ | 100,503 | $ | 101,910 | ||||||||||
U.S. Treasury notes | — | — | 2,377 | 2,364 | 2,390 | |||||||||||||||
International agency issued bonds (Agency bonds) | — | — | 1,703 | 1,717 | 1,745 | |||||||||||||||
U.S. government agency issued asset-backed securities (ABS agency) | 14,822 | 11,782 | — | — | — | |||||||||||||||
Corporate issued asset-backed securities (ABS corporate) | 13,929 | 5,286 | — | — | — | |||||||||||||||
Corporate issued debt securities (Corporate debt): | ||||||||||||||||||||
Senior positions | 13,617 | 9,270 | 16,975 | 16,934 | 17,025 | |||||||||||||||
Subordinated bank notes | 39,414 | 42,184 | 37,360 | 36,740 | 38,092 | |||||||||||||||
U.S. Small Business Administration securities (SBA) | 7,911 | — | — | — | — | |||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. government agency issued mortgage-backed securities (MBS agency) | 83,271 | 63,247 | 66,946 | 71,565 | 74,946 | |||||||||||||||
Non-agency issued mortgage-backed securities (MBS non-agency) | 65,987 | 76,093 | 89,968 | 92,140 | 92,978 | |||||||||||||||
Total securities available for sale, at fair value | $ | 325,955 | $ | 295,623 | $ | 309,324 | $ | 321,963 | $ | 329,086 | ||||||||||
Loans and Unfunded Loan Commitments
Net loans, excluding loans held for sale, increased
Commercial business loans increased
Construction loans decreased
The Company originated
Loans by Collateral and Unfunded Commitments | ||||||||||||||||||||
$ in thousands | 1Q 24 | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | |||||||||||||||
One-to-four family construction | $ | 70,100 | $ | 60,211 | $ | 72,991 | $ | 74,787 | $ | 65,770 | ||||||||||
All other construction and land | 55,286 | 69,484 | 71,092 | 81,968 | 95,769 | |||||||||||||||
One-to-four family first mortgage | 436,543 | 426,159 | 409,207 | 428,879 | 394,595 | |||||||||||||||
One-to-four family junior liens | 12,608 | 12,250 | 12,859 | 11,956 | 9,140 | |||||||||||||||
One-to-four family revolving open-end | 45,536 | 42,479 | 38,413 | 33,658 | 30,473 | |||||||||||||||
Commercial real estate, owner occupied: | ||||||||||||||||||||
Health care | 29,946 | 22,523 | 22,677 | 23,157 | 23,311 | |||||||||||||||
Office | 17,951 | 18,468 | 18,599 | 18,797 | 22,246 | |||||||||||||||
Warehouse | 14,683 | 14,758 | 14,890 | 15,158 | 16,782 | |||||||||||||||
Other | 55,063 | 61,304 | 57,414 | 60,054 | 52,212 | |||||||||||||||
Commercial real estate, non-owner occupied: | ||||||||||||||||||||
Office | 53,099 | 53,548 | 53,879 | 54,926 | 58,711 | |||||||||||||||
Retail | 50,478 | 51,384 | 51,466 | 51,824 | 52,175 | |||||||||||||||
Hospitality | 66,982 | 67,332 | 61,339 | 53,416 | 45,978 | |||||||||||||||
Other | 93,040 | 94,822 | 96,083 | 90,870 | 93,207 | |||||||||||||||
Multi-family residential | 339,907 | 333,428 | 325,338 | 296,398 | 284,699 | |||||||||||||||
Commercial business loans | 90,781 | 76,920 | 75,068 | 80,079 | 80,825 | |||||||||||||||
Commercial agriculture and fishing loans | 10,200 | 5,422 | 4,437 | 7,844 | 1,829 | |||||||||||||||
State and political subdivision obligations | 405 | 405 | 439 | 439 | 439 | |||||||||||||||
Consumer automobile loans | 139,524 | 132,877 | 134,695 | 137,860 | 136,540 | |||||||||||||||
Consumer loans secured by other assets | 122,895 | 108,542 | 104,999 | 105,653 | 106,360 | |||||||||||||||
Consumer loans unsecured | 6,415 | 7,712 | 9,093 | 10,437 | 8,403 | |||||||||||||||
Total loans | $ | 1,711,442 | $ | 1,660,028 | $ | 1,634,978 | $ | 1,638,160 | $ | 1,579,464 | ||||||||||
Unfunded loan commitments | $ | 51,038 | $ | 149,631 | $ | 154,722 | $ | 168,668 | $ | 202,720 | ||||||||||
Deposits
Total deposits decreased
The Company estimates that
As of March 31, 2024, consumer deposits made up
Deposits | ||||||||||||||||||||
$ in thousands | 1Q 24 | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | |||||||||||||||
Noninterest-bearing demand deposits | $ | 252,761 | $ | 252,083 | $ | 269,800 | $ | 280,475 | $ | 292,119 | ||||||||||
Interest-bearing demand deposits | 170,729 | 169,418 | 182,361 | 179,029 | 189,187 | |||||||||||||||
Money market accounts | 395,480 | 362,205 | 372,706 | 374,269 | 402,760 | |||||||||||||||
Savings accounts | 236,550 | 242,148 | 253,182 | 260,279 | 242,117 | |||||||||||||||
Certificates of deposit, retail | 418,904 | 443,412 | 410,136 | 379,484 | 333,510 | |||||||||||||||
Total retail deposits | 1,474,424 | 1,469,266 | 1,488,185 | 1,473,536 | 1,459,693 | |||||||||||||||
Certificates of deposit, brokered | 192,200 | 207,626 | 169,577 | 179,586 | 134,515 | |||||||||||||||
Total deposits | $ | 1,666,624 | $ | 1,676,892 | $ | 1,657,762 | $ | 1,653,122 | $ | 1,594,208 | ||||||||||
Public fund and tribal deposits included in total deposits | $ | 134,120 | $ | 132,652 | $ | 128,627 | $ | 130,974 | $ | 119,969 | ||||||||||
Total loans to total deposits | 103 | % | 99 | % | 99 | % | 99 | % | 99 | % |
Deposit Mix | 1Q 24 | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | |||||||||||||||
Noninterest-bearing demand deposits | 15.2 | % | 15.0 | % | 16.3 | % | 17.0 | % | 18.3 | % | ||||||||||
Interest-bearing demand deposits | 10.2 | 10.1 | 11.0 | 10.8 | 11.9 | |||||||||||||||
Money market accounts | 23.7 | 21.6 | 22.5 | 22.6 | 25.3 | |||||||||||||||
Savings accounts | 14.2 | 14.4 | 15.3 | 15.7 | 15.2 | |||||||||||||||
Certificates of deposit, retail | 25.2 | 26.5 | 24.7 | 23.0 | 20.9 | |||||||||||||||
Certificates of deposit, brokered | 11.5 | 12.4 | 10.2 | 10.9 | 8.4 |
Cost of Deposits for the Quarter Ended | 1Q 24 | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | |||||||||||||||
Interest-bearing demand deposits | 0.45 | % | 0.45 | % | 0.46 | % | 0.45 | % | 0.42 | % | ||||||||||
Money market accounts | 2.08 | 1.48 | 1.22 | 0.99 | 0.73 | |||||||||||||||
Savings accounts | 1.63 | 1.54 | 1.42 | 1.22 | 0.70 | |||||||||||||||
Certificates of deposit, retail | 4.13 | 3.92 | 3.52 | 3.25 | 2.59 | |||||||||||||||
Certificates of deposit, brokered | 4.94 | 4.72 | 4.31 | 3.44 | 2.99 | |||||||||||||||
Cost of total deposits | 2.43 | 2.12 | 1.85 | 1.54 | 1.12 | |||||||||||||||
Asset Quality
Nonperforming loans were
The allowance for credit losses on loans as a percentage of total loans was
$ in thousands | 1Q 24 | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | |||||||||||||||
Allowance for credit losses on loans to total loans | 1.05 | % | 1.05 | % | 1.04 | % | 1.06 | % | 1.10 | % | ||||||||||
Allowance for credit losses on loans to nonaccrual loans | 92 | 94 | 714 | 677 | 661 | |||||||||||||||
Nonaccrual loans to total loans | 1.14 | 1.12 | 0.15 | 0.16 | 0.17 | |||||||||||||||
Net charge-off ratio (annualized) | 0.19 | 0.14 | 0.30 | 0.10 | 0.25 | |||||||||||||||
Total nonaccrual loans | $ | 19,481 | $ | 18,644 | $ | 2,374 | $ | 2,554 | $ | 2,633 | ||||||||||
Reserve for unfunded commitments | $ | 548 | $ | 817 | $ | 828 | $ | 1,336 | $ | 1,336 | ||||||||||
Capital
Total shareholders’ equity decreased to
Book value per common share was
Capital levels for both the Company and its operating bank, First Fed, remain in excess of applicable regulatory requirements and the Bank was categorized as "well-capitalized" at March 31, 2024. Common Equity Tier 1 and Total Risk-Based Capital Ratios at March 31, 2024, were
1Q 24 | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | ||||||||||||||||
Equity to total assets | 7.17 | % | 7.42 | % | 7.25 | % | 7.38 | % | 7.38 | % | ||||||||||
Tangible common equity to tangible assets * | 7.10 | 7.35 | 7.17 | 7.31 | 7.30 | |||||||||||||||
Capital ratios (First Fed Bank): | ||||||||||||||||||||
Tier 1 leverage | 9.74 | 9.90 | 10.12 | 10.16 | 10.41 | |||||||||||||||
Common equity Tier 1 capital | 12.56 | 13.12 | 13.43 | 13.10 | 13.34 | |||||||||||||||
Tier 1 risk-based | 12.56 | 13.12 | 13.43 | 13.10 | 13.34 | |||||||||||||||
Total risk-based | 13.57 | 14.11 | 14.38 | 14.08 | 14.35 | |||||||||||||||
Share Repurchase Program and Cash Dividend
First Northwest continued to return capital to our shareholders through cash dividends and share repurchases during the first quarter of 2024. We repurchased 214,132 shares of common stock under the Company's October 2020 Stock Repurchase Plan ("Repurchase Plan") at an average price of
* See reconciliation of Non-GAAP Financial Measures later in this release.
Awards/Recognition
The Company received several accolades as a leader in the community in the last year.
In October 2023, the First Fed team was honored to bring home the Gold for Best Bank in the Best of the Northwest survey hosted by Bellingham Alive for the second year in a row. | |
In September 2023, the First Fed team was recognized in the 2023 Best of Olympic Peninsula surveys, winning Best Bank and Best Financial Advisor in Clallam County. First Fed was also a finalist for Best Bank in Jefferson County, Best Employer in Kitsap County and Best Bank and Best Financial Institution in Bainbridge. | |
In June 2023, First Fed was named on the Puget Sound Business Journal’s Best Workplaces list. First Fed has been recognized as one the top 100 workplaces in Washington, as voted for two years in row by each company’s own employees. | |
In May 2023, First Fed was recognized as a Top Corporate Citizen by the Puget Sound Business Journal. The Corporate Citizenship Awards honors local corporate philanthropists and companies making significant contributions in the region. The top 25 small, medium and large-sized companies were recognized in addition to nine other honorees last year. First Fed was ranked #1 in the medium-sized company category in 2023 and was ranked #3 in the same category in 2022. | |
First Fed has been rated a 5-star bank by Bauer Financial, a leading independent bank and credit union rating and research firm. This top rating indicates that First Fed is one of the strongest banks in the nation based on capital, loan quality and other detailed performance criteria. | |
About the Company
First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 16 locations in Washington state including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. In 2022, First Northwest made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm. Additionally, First Northwest focuses on strategic partnerships to provide modern financial services such as digital payments and marketplace lending. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.
Forward-Looking Statements
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding our mission and vision, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, and other statements often identified by words such as "believes," "expects," "anticipates," "estimates," or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits or declines in the value of our investment portfolio; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and other factors described in the Company’s latest Annual Report on Form 10-K under the section entitled "Risk Factors," and other filings with the Securities and Exchange Commission ("SEC"),which are available on our website at www.ourfirstfed.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 we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company's operating and stock price performance may be negatively affected. 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 2024 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s operations and stock price performance.
For More Information Contact:
Matthew P. Deines, President and Chief Executive Officer
Geri Bullard, EVP, Chief Financial Officer and Chief Operating Officer
IRGroup@ourfirstfed.com
360-457-0461
FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited) | ||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | Three Month Change | One Year Change | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 15,562 | $ | 19,845 | $ | 17,844 | -21.6 | % | -12.8 | % | ||||||||||
Interest-earning deposits in banks | 61,784 | 103,324 | 122,773 | -40.2 | -49.7 | |||||||||||||||
Investment securities available for sale, at fair value | 325,955 | 295,623 | 329,086 | 10.3 | -1.0 | |||||||||||||||
Loans held for sale | 988 | 753 | — | 31.2 | 100.0 | |||||||||||||||
Loans receivable (net of allowance for credit losses on loans | 1,692,774 | 1,642,518 | 1,562,068 | 3.1 | 8.4 | |||||||||||||||
Federal Home Loan Bank (FHLB) stock, at cost | 15,876 | 13,664 | 15,602 | 16.2 | 1.8 | |||||||||||||||
Accrued interest receivable | 8,909 | 7,894 | 7,205 | 12.9 | 23.7 | |||||||||||||||
Premises and equipment, net | 11,028 | 18,049 | 18,252 | -38.9 | -39.6 | |||||||||||||||
Premises held for sale, net | 6,751 | — | — | 100.0 | 100.0 | |||||||||||||||
Servicing rights on sold loans, at fair value | 3,820 | 3,793 | 4,224 | 0.7 | -9.6 | |||||||||||||||
Bank-owned life insurance, net | 34,681 | 40,578 | 39,878 | -14.5 | -13.0 | |||||||||||||||
Equity and partnership investments | 15,121 | 14,794 | 14,392 | 2.2 | 5.1 | |||||||||||||||
Goodwill and other intangible assets, net | 1,085 | 1,086 | 1,088 | -0.1 | -0.3 | |||||||||||||||
Deferred tax asset, net | 12,704 | 13,001 | 14,211 | -2.3 | -10.6 | |||||||||||||||
Prepaid expenses and other assets | 32,982 | 26,875 | 25,471 | 22.7 | 29.5 | |||||||||||||||
Total assets | $ | 2,240,020 | $ | 2,201,797 | $ | 2,172,094 | 1.7 | % | 3.1 | % | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Deposits | $ | 1,666,624 | $ | 1,676,892 | $ | 1,594,208 | -0.6 | % | 4.5 | % | ||||||||||
Borrowings | 371,455 | 320,936 | 379,377 | 15.7 | -2.1 | |||||||||||||||
Accrued interest payable | 2,830 | 3,396 | 508 | -16.7 | 457.1 | |||||||||||||||
Accrued expenses and other liabilities | 36,207 | 35,973 | 35,255 | 0.7 | 2.7 | |||||||||||||||
Advances from borrowers for taxes and insurance | 2,398 | 1,260 | 2,410 | 90.3 | -0.5 | |||||||||||||||
Total liabilities | 2,079,514 | 2,038,457 | 2,011,758 | 2.0 | 3.4 | |||||||||||||||
Shareholders' Equity | ||||||||||||||||||||
Preferred stock, | — | — | — | n/a | n/a | |||||||||||||||
Common stock, | 94 | 96 | 97 | -2.1 | -3.1 | |||||||||||||||
Additional paid-in capital | 93,763 | 95,784 | 95,333 | -2.1 | -1.6 | |||||||||||||||
Retained earnings | 106,202 | 107,349 | 114,139 | -1.1 | -7.0 | |||||||||||||||
Accumulated other comprehensive loss, net of tax | (32,465 | ) | (32,636 | ) | (38,108 | ) | 0.5 | 14.8 | ||||||||||||
Unearned employee stock ownership plan (ESOP) shares | (7,088 | ) | (7,253 | ) | (7,749 | ) | 2.3 | 8.5 | ||||||||||||
Total parent's shareholders' equity | 160,506 | 163,340 | 163,712 | -1.7 | -2.0 | |||||||||||||||
Noncontrolling interest in Quin Ventures, Inc. | — | — | (3,376 | ) | n/a | 100.0 | ||||||||||||||
Total shareholders' equity | 160,506 | 163,340 | 160,336 | -1.7 | 0.1 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,240,020 | $ | 2,201,797 | $ | 2,172,094 | 1.7 | % | 3.1 | % |
FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | Three Month Change | One Year Change | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Interest and fees on loans receivable | $ | 22,767 | $ | 22,083 | $ | 19,504 | 3.1 | % | 16.7 | % | ||||||||||
Interest on investment securities | 3,632 | 3,393 | 3,182 | 7.0 | 14.1 | |||||||||||||||
Interest on deposits in banks | 645 | 581 | 404 | 11.0 | 59.7 | |||||||||||||||
FHLB dividends | 282 | 252 | 192 | 11.9 | 46.9 | |||||||||||||||
Total interest income | 27,326 | 26,309 | 23,282 | 3.9 | 17.4 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 10,112 | 8,758 | 4,353 | 15.5 | 132.3 | |||||||||||||||
Borrowings | 3,286 | 3,356 | 2,624 | -2.1 | 25.2 | |||||||||||||||
Total interest expense | 13,398 | 12,114 | 6,977 | 10.6 | 92.0 | |||||||||||||||
Net interest income | 13,928 | 14,195 | 16,305 | -1.9 | -14.6 | |||||||||||||||
PROVISION FOR CREDIT LOSSES | ||||||||||||||||||||
Provision for (recapture of) credit losses on loans | 1,239 | 1,162 | (515 | ) | 6.6 | 340.6 | ||||||||||||||
(Recapture of) provision for credit losses on unfunded commitments | (269 | ) | (10 | ) | 15 | -2,590.0 | -1,893.3 | |||||||||||||
Provision for (recapture of) credit losses | 970 | 1,152 | (500 | ) | -15.8 | 294.0 | ||||||||||||||
Net interest income after provision for (recapture of) credit losses | 12,958 | 13,043 | 16,805 | -0.7 | -22.9 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Loan and deposit service fees | 1,102 | 1,068 | 1,141 | 3.2 | -3.4 | |||||||||||||||
Sold loan servicing fees and servicing rights mark-to-market | 219 | 276 | 493 | -20.7 | -55.6 | |||||||||||||||
Net gain on sale of loans | 52 | 33 | 176 | 57.6 | -70.5 | |||||||||||||||
Net (loss) gain on sale of investment securities | — | (5,397 | ) | — | 100.0 | n/a | ||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 243 | 260 | 226 | -6.5 | 7.5 | |||||||||||||||
Other income | 572 | 831 | 298 | -31.2 | 91.9 | |||||||||||||||
Total noninterest income | 2,188 | (2,929 | ) | 2,334 | 174.7 | -6.3 | ||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Compensation and benefits | 8,128 | 7,397 | 7,837 | 9.9 | 3.7 | |||||||||||||||
Data processing | 1,944 | 2,107 | 2,038 | -7.7 | -4.6 | |||||||||||||||
Occupancy and equipment | 1,240 | 1,262 | 1,209 | -1.7 | 2.6 | |||||||||||||||
Supplies, postage, and telephone | 293 | 351 | 355 | -16.5 | -17.5 | |||||||||||||||
Regulatory assessments and state taxes | 513 | 376 | 389 | 36.4 | 31.9 | |||||||||||||||
Advertising | 309 | 235 | 1,041 | 31.5 | -70.3 | |||||||||||||||
Professional fees | 910 | 1,119 | 806 | -18.7 | 12.9 | |||||||||||||||
FDIC insurance premium | 386 | 418 | 257 | -7.7 | 50.2 | |||||||||||||||
Other expense | 580 | 3,725 | 939 | -84.4 | -38.2 | |||||||||||||||
Total noninterest expense | 14,303 | 16,990 | 14,871 | -15.8 | -3.8 | |||||||||||||||
Income before provision (benefit) for income taxes | 843 | (6,876 | ) | 4,268 | 112.3 | -80.2 | ||||||||||||||
Provision (benefit) for income taxes | 447 | (1,354 | ) | 825 | 133.0 | -45.8 | ||||||||||||||
Net income (loss) | 396 | (5,522 | ) | 3,443 | 107.2 | -88.5 | ||||||||||||||
Net loss attributable to noncontrolling interest in Quin Ventures, Inc. | — | — | 85 | n/a | -100.0 | |||||||||||||||
Net income (loss) attributable to parent | $ | 396 | $ | (5,522 | ) | $ | 3,528 | 107.2 | % | -88.8 | % | |||||||||
Basic and diluted earnings (loss) per common share | $ | 0.04 | $ | (0.62 | ) | $ | 0.39 | 106.5 | % | -89.7 | % | |||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY Selected Financial Ratios and Other Data (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||||||||
As of or For the Quarter Ended | ||||||||||||||||||||
March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||||||||
Performance ratios: (1) | ||||||||||||||||||||
Return on average assets | 0.07 | % | -1.03 | % | 0.46 | % | 0.34 | % | 0.70 | % | ||||||||||
Return on average equity | 0.98 | (14.05 | ) | 6.17 | 4.41 | 8.98 | ||||||||||||||
Average interest rate spread | 2.28 | 2.40 | 2.54 | 2.84 | 3.14 | |||||||||||||||
Net interest margin (2) | 2.76 | 2.84 | 2.97 | 3.25 | 3.46 | |||||||||||||||
Efficiency ratio (3) | 88.8 | 150.8 | 80.5 | 86.0 | 79.8 | |||||||||||||||
Equity to total assets | 7.17 | 7.42 | 7.25 | 7.38 | 7.38 | |||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 118.3 | 118.2 | 120.0 | 120.7 | 122.4 | |||||||||||||||
Book value per common share | $ | 17.00 | $ | 16.99 | $ | 16.20 | $ | 16.56 | $ | 16.57 | ||||||||||
Tangible performance ratios: (1) | ||||||||||||||||||||
Tangible common equity to tangible assets (4) | 7.10 | % | 7.35 | % | 7.17 | % | 7.31 | % | 7.30 | % | ||||||||||
Return on average tangible common equity (4) | 0.99 | (14.20 | ) | 6.23 | 4.47 | 9.08 | ||||||||||||||
Tangible book value per common share (4) | $ | 16.83 | $ | 16.83 | $ | 16.03 | $ | 16.39 | $ | 16.38 | ||||||||||
Asset quality ratios: | ||||||||||||||||||||
Nonperforming assets to total assets at end of period (5) | 0.87 | % | 0.85 | % | 0.11 | % | 0.12 | % | 0.12 | % | ||||||||||
Nonaccrual loans to total loans (6) | 1.14 | 1.12 | 0.15 | 0.16 | 0.17 | |||||||||||||||
Allowance for credit losses on loans to nonaccrual loans (6) | 92.18 | 93.92 | 713.77 | 677.25 | 660.69 | |||||||||||||||
Allowance for credit losses on loans to total loans | 1.05 | 1.05 | 1.04 | 1.06 | 1.10 | |||||||||||||||
Annualized net charge-offs to average outstanding loans | 0.19 | 0.14 | 0.30 | 0.10 | 0.25 | |||||||||||||||
Capital ratios (First Fed Bank): | ||||||||||||||||||||
Tier 1 leverage | 9.7 | % | 9.9 | % | 10.1 | % | 10.2 | % | 10.4 | % | ||||||||||
Common equity Tier 1 capital | 12.6 | 13.1 | 13.4 | 13.1 | 13.3 | |||||||||||||||
Tier 1 risk-based | 12.6 | 13.1 | 13.4 | 13.1 | 13.3 | |||||||||||||||
Total risk-based | 13.6 | 14.1 | 14.4 | 14.1 | 14.4 | |||||||||||||||
Other Information: | ||||||||||||||||||||
Average total assets | $ | 2,166,187 | $ | 2,127,655 | $ | 2,139,734 | $ | 2,118,014 | $ | 2,050,210 | ||||||||||
Average total loans | 1,678,656 | 1,645,418 | 1,641,206 | 1,605,133 | 1,552,299 | |||||||||||||||
Average interest-earning assets | 2,027,821 | 1,980,226 | 1,994,251 | 1,975,384 | 1,909,271 | |||||||||||||||
Average noninterest-bearing deposits | 249,283 | 259,845 | 276,294 | 282,514 | 294,235 | |||||||||||||||
Average interest-bearing deposits | 1,422,116 | 1,379,059 | 1,377,734 | 1,333,943 | 1,288,429 | |||||||||||||||
Average interest-bearing liabilities | 1,714,474 | 1,675,044 | 1,661,996 | 1,636,188 | 1,559,983 | |||||||||||||||
Average equity | 161,867 | 155,971 | 160,994 | 161,387 | 159,319 | |||||||||||||||
Average common shares -- basic | 8,876,236 | 8,928,620 | 8,906,526 | 8,914,355 | 8,911,294 | |||||||||||||||
Average common shares -- diluted | 8,907,184 | 8,968,828 | 8,934,882 | 8,931,386 | 8,939,601 | |||||||||||||||
Tangible assets (4) | 2,238,446 | 2,200,230 | 2,151,849 | 2,161,235 | 2,170,202 | |||||||||||||||
Tangible common equity (4) | 158,932 | 161,773 | 154,369 | 157,914 | 158,444 |
(1 | ) | Performance ratios are annualized, where appropriate. |
(2 | ) | Net interest income divided by average interest-earning assets. |
(3 | ) | Total noninterest expense as a percentage of net interest income and total other noninterest income. |
(4 | ) | See reconciliation of Non-GAAP Financial Measures later in this release. |
(5 | ) | Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets. |
(6 | ) | Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due. |
FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited) | ||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | Three Month Change | One Year Change | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Real Estate: | ||||||||||||||||||||
One-to-four family | $ | 383,905 | $ | 378,432 | $ | 354,522 | $ | 5,473 | $ | 29,383 | ||||||||||
Multi-family | 339,538 | 333,094 | 284,863 | 6,444 | 54,675 | |||||||||||||||
Commercial real estate | 385,130 | 387,983 | 373,013 | (2,853 | ) | 12,117 | ||||||||||||||
Construction and land | 125,347 | 129,691 | 161,662 | (4,344 | ) | (36,315 | ) | |||||||||||||
Total real estate loans | 1,233,920 | 1,229,200 | 1,174,060 | 4,720 | 59,860 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity | 72,391 | 69,403 | 54,116 | 2,988 | 18,275 | |||||||||||||||
Auto and other consumer | 268,834 | 249,130 | 251,302 | 19,704 | 17,532 | |||||||||||||||
Total consumer loans | 341,225 | 318,533 | 305,418 | 22,692 | 35,807 | |||||||||||||||
Commercial business | 136,297 | 112,295 | 99,986 | 24,002 | 36,311 | |||||||||||||||
Total loans receivable | 1,711,442 | 1,660,028 | 1,579,464 | 51,414 | 131,978 | |||||||||||||||
Less: | ||||||||||||||||||||
Derivative basis adjustment | 710 | 0 | 0 | 710 | 710 | |||||||||||||||
Allowance for credit losses on loans | 17,958 | 17,510 | 17,396 | 448 | 562 | |||||||||||||||
Total loans receivable, net | $ | 1,692,774 | $ | 1,642,518 | $ | 1,562,068 | $ | 50,256 | $ | 130,706 | ||||||||||
Selected loan detail:
March 31, 2024 | December 31, 2023 | March 31, 2023 | Three Month Change | One Year Change | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Construction and land loans breakout | ||||||||||||||||||||
1-4 Family construction | $ | 69,075 | $ | 68,029 | $ | 87,269 | $ | 1,046 | $ | (18,194 | ) | |||||||||
Multifamily construction | 45,776 | 50,431 | 51,788 | (4,655 | ) | (6,012 | ) | |||||||||||||
Acquisition-renovation | — | — | 7,096 | — | (7,096 | ) | ||||||||||||||
Nonresidential construction | 3,374 | 3,756 | 6,909 | (382 | ) | (3,535 | ) | |||||||||||||
Land and development | 7,122 | 7,475 | 8,600 | (353 | ) | (1,478 | ) | |||||||||||||
Total construction and land loans | $ | 125,347 | $ | 129,691 | $ | 161,662 | $ | (4,344 | ) | $ | (36,315 | ) | ||||||||
Auto and other consumer loans breakout | ||||||||||||||||||||
Triad Manufactured Home loans | $ | 105,525 | $ | 93,591 | $ | 102,424 | $ | 11,934 | $ | 3,101 | ||||||||||
Woodside auto loans | 128,072 | 124,401 | 123,337 | 3,671 | 4,735 | |||||||||||||||
First Help auto loans | 8,326 | 4,516 | 6,281 | 3,810 | 2,045 | |||||||||||||||
Other auto loans | 3,313 | 4,158 | 7,350 | (845 | ) | (4,037 | ) | |||||||||||||
Other consumer loans | 23,598 | 22,464 | 11,910 | 1,134 | 11,688 | |||||||||||||||
Total auto and other consumer loans | $ | 268,834 | $ | 249,130 | $ | 251,302 | $ | 19,704 | $ | 17,532 | ||||||||||
Commercial business loans breakout | ||||||||||||||||||||
PPP loans | $ | 18 | $ | 32 | $ | 72 | $ | (14 | ) | $ | (54 | ) | ||||||||
Northpointe Bank MPP | 15,047 | 9,502 | — | 5,545 | 15,047 | |||||||||||||||
Secured lines of credit | 41,014 | 35,815 | 30,723 | 5,199 | 10,291 | |||||||||||||||
Unsecured lines of credit | 1,001 | 456 | 588 | 545 | 413 | |||||||||||||||
SBA loans | 8,944 | 9,115 | 8,805 | (171 | ) | 139 | ||||||||||||||
Other commercial business loans | 70,273 | 57,375 | 59,798 | 12,898 | 10,475 | |||||||||||||||
Total commercial business loans | $ | 136,297 | $ | 112,295 | $ | 99,986 | $ | 24,002 | $ | 36,311 |
FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited) |
Non-GAAP Financial Measures
This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America ("GAAP"). Non-GAAP measures are presented where management believes the information will help investors understand the Company’s results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Reconciliations of the GAAP and non-GAAP measures are presented below.
Calculation of Total Revenue:
March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Net interest income | $ | 13,928 | $ | 14,195 | $ | 14,950 | $ | 15,982 | $ | 16,305 | ||||||||||
Noninterest income | 2,188 | (2,929 | ) | 2,904 | 1,711 | 2,334 | ||||||||||||||
Total revenue, net of interest expense (1) | $ | 16,116 | $ | 11,266 | $ | 17,854 | $ | 17,693 | $ | 18,639 |
(1 | ) | We believe this non-GAAP metric provides an important measure with which to analyze and evaluate income available for noninterest expenses. |
Calculations Based on Tangible Common Equity:
March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Total shareholders' equity | $ | 160,506 | $ | 163,340 | $ | 156,065 | $ | 159,557 | $ | 160,336 | ||||||||||
Less: Goodwill and other intangible assets | 1,085 | 1,086 | 1,087 | 1,087 | 1,088 | |||||||||||||||
Disallowed non-mortgage loan servicing rights | 489 | 481 | 609 | 556 | 804 | |||||||||||||||
Total tangible common equity | $ | 158,932 | $ | 161,773 | $ | 154,369 | $ | 157,914 | $ | 158,444 | ||||||||||
Total assets | $ | 2,240,020 | $ | 2,201,797 | $ | 2,153,545 | $ | 2,162,878 | $ | 2,172,094 | ||||||||||
Less: Goodwill and other intangible assets | 1,085 | 1,086 | 1,087 | 1,087 | 1,088 | |||||||||||||||
Disallowed non-mortgage loan servicing rights | 489 | 481 | 609 | 556 | 804 | |||||||||||||||
Total tangible assets | $ | 2,238,446 | $ | 2,200,230 | $ | 2,151,849 | $ | 2,161,235 | $ | 2,170,202 | ||||||||||
Average shareholders' equity | $ | 161,867 | $ | 155,971 | $ | 160,994 | $ | 161,387 | $ | 159,319 | ||||||||||
Less: Average goodwill and other intangible assets | 1,085 | 1,086 | 1,087 | 1,088 | 1,089 | |||||||||||||||
Average disallowed non-mortgage loan servicing rights | 481 | 608 | 557 | 801 | 715 | |||||||||||||||
Total average tangible common equity | $ | 160,301 | $ | 154,277 | $ | 159,350 | $ | 159,498 | $ | 157,515 | ||||||||||
Tangible common equity to tangible assets (1) | 7.10 | % | 7.35 | % | 7.17 | % | 7.31 | % | 7.30 | % | ||||||||||
Net income (loss) | $ | 396 | $ | (5,522 | ) | $ | 2,504 | $ | 1,776 | $ | 3,528 | |||||||||
Return on average tangible common equity (1) | 0.99 | % | -14.20 | % | 6.23 | % | 4.47 | % | 9.08 | % | ||||||||||
Common shares outstanding | 9,442,796 | 9,611,876 | 9,630,735 | 9,633,496 | 9,674,055 | |||||||||||||||
Tangible book value per common share (1) | $ | 16.83 | $ | 16.83 | $ | 16.03 | $ | 16.39 | $ | 16.38 | ||||||||||
GAAP Ratios: | ||||||||||||||||||||
Equity to total assets | 7.17 | % | 7.42 | % | 7.25 | % | 7.38 | % | 7.38 | % | ||||||||||
Return on average equity | 0.98 | % | -14.05 | % | 6.17 | % | 4.41 | % | 8.98 | % | ||||||||||
Book value per common share | $ | 17.00 | $ | 16.99 | $ | 16.20 | $ | 16.56 | $ | 16.57 |
(1 | ) | We believe these non-GAAP metrics provide an important measure with which to analyze and evaluate financial condition and capital strength. In addition, we believe that use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles. |
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FAQ
What was First Northwest Bancorp's net income for Q1 2024?
What was the basic and diluted earnings per share for Q1 2024?
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