First Northwest Bancorp Reports Third Quarter 2024 Financial Results
First Northwest Bancorp (FNWB) reported a net loss of $2.0 million for Q3 2024, compared to a net loss of $2.2 million in Q2 2024 and net income of $2.5 million in Q3 2023. The loss was primarily driven by a $3.1 million provision for credit losses. Key metrics include:
- Basic and diluted loss per share: $0.23
- Return on average assets: -0.36%
- Net interest margin decreased to 2.70%
Notable developments include completion of a workforce reduction affecting 9% of employees, expected to reduce quarterly compensation expenses by $820,000 starting Q4 2024. Total deposits grew by $34.7 million year-to-date to $1.71 billion.
First Northwest Bancorp (FNWB) ha riportato una perdita netta di 2,0 milioni di dollari per il terzo trimestre del 2024, rispetto a una perdita netta di 2,2 milioni di dollari nel secondo trimestre del 2024 e un utile netto di 2,5 milioni di dollari nel terzo trimestre del 2023. La perdita è stata principalmente causata da un'accantonamento di 3,1 milioni di dollari per perdite su crediti. I principali indicatori includono:
- Perdita per azione, base e diluita: 0,23 dollari
- Rendimento medio degli attivi: -0,36%
- Margine di interesse netto diminuito al 2,70%
Sviluppi notevoli includono il completamento di una riduzione della forza lavoro che ha interessato il 9% dei dipendenti, prevista per ridurre le spese salariali trimestrali di 820.000 dollari a partire dal quarto trimestre del 2024. I depositi totali sono aumentati di 34,7 milioni di dollari dall'inizio dell'anno, raggiungendo 1,71 miliardi di dollari.
First Northwest Bancorp (FNWB) reportó una pérdida neta de 2.0 millones de dólares para el tercer trimestre de 2024, en comparación con una pérdida neta de 2.2 millones de dólares en el segundo trimestre de 2024 y una ganancia neta de 2.5 millones de dólares en el tercer trimestre de 2023. La pérdida se debió principalmente a una provisión de 3.1 millones de dólares por pérdidas crediticias. Los indicadores clave incluyen:
- Pérdida básica y diluida por acción: 0.23 dólares
- Rendimiento sobre activos promedio: -0.36%
- El margen de interés neto disminuyó al 2.70%
Desarrollos notables incluyen la finalización de una reducción de la fuerza laboral que afecta al 9% de los empleados, lo que se espera que reduzca los gastos de compensación trimestrales en 820,000 dólares a partir del cuarto trimestre de 2024. Los depósitos totales crecieron en 34.7 millones de dólares desde el inicio del año, alcanzando 1.71 mil millones de dólares.
퍼스트 노스웨스트 뱅콥 (FNWB)는 2024년 3분기에 200만 달러의 순손실을 보고했으며, 이는 2024년 2분기의 220만 달러 순손실과 2023년 3분기의 250만 달러 순이익에 비해 감소한 수치입니다. 이 손실은 주로 310만 달러의 신용손실 충당금으로 인해 발생했습니다. 주요 지표는 다음과 같습니다:
- 기본 및 희석 주당 손실: 0.23달러
- 평균 자산 수익률: -0.36%
- 순이자 마진이 2.70%로 감소했습니다.
눈에 띄는 발전으로는 9%의 직원이 영향을 받는 인력 감축이 완료되어, 2024년 4분기부터 분기 보상 비용을 82만 달러 줄일 것으로 예상됩니다. 총 예치금은 올해 들어 3,470만 달러 증가하여 17억 1,000만 달러에 도달했습니다.
First Northwest Bancorp (FNWB) a signalé une perte nette de 2,0 millions de dollars pour le troisième trimestre 2024, comparée à une perte nette de 2,2 millions de dollars au deuxième trimestre 2024 et à un bénéfice net de 2,5 millions de dollars au troisième trimestre 2023. La perte a été principalement causée par une provision de 3,1 millions de dollars pour pertes de crédit. Les indicateurs clés comprennent :
- Perte de base et diluée par action : 0,23 dollar
- Rendement des actifs moyens : -0,36%
- La marge d'intérêt nette a diminué à 2,70%
Parmi les développements notables, on note l'achèvement d'une réduction de personnel touchant 9 % des employés, ce qui devrait réduire les dépenses de compensation trimestrielles de 820 000 dollars à partir du quatrième trimestre 2024. Les dépôts totaux ont augmenté de 34,7 millions de dollars depuis le début de l'année, atteignant 1,71 milliard de dollars.
First Northwest Bancorp (FNWB) meldete für das 3. Quartal 2024 einen Nettoverlust von 2,0 Millionen Dollar, verglichen mit einem Nettoverlust von 2,2 Millionen Dollar im 2. Quartal 2024 und einem Nettogewinn von 2,5 Millionen Dollar im 3. Quartal 2023. Der Verlust wurde hauptsächlich durch eine Rückstellung für Kreditverluste in Höhe von 3,1 Millionen Dollar verursacht. Zu den wichtigsten Kennzahlen gehören:
- Grundlegender und verwässerter Verlust pro Aktie: 0,23 Dollar
- Rendite auf durchschnittliche Vermögenswerte: -0,36%
- Nettozinsspread fiel auf 2,70%
Bemerkenswerte Entwicklungen umfassen den Abschluss einer Reduzierung der Belegschaft, die 9 % der Mitarbeiter betrifft, was voraussichtlich die vierteljährlichen Gehaltskosten ab dem 4. Quartal 2024 um 820.000 Dollar senken wird. Die Gesamteinlagen sind seit Jahresbeginn um 34,7 Millionen Dollar auf 1,71 Milliarden Dollar gestiegen.
- Year-to-date deposit growth of $34.7 million (2.0%) to $1.71 billion
- Strong liquidity position with 142% coverage of uninsured deposits
- Workforce reduction expected to save $820,000 per quarter starting Q4 2024
- New loan originations achieving 8.5% weighted-average rate year-to-date
- Q3 2024 net loss of $2.0 million compared to $2.5 million profit in Q3 2023
- $3.1 million provision for credit losses in Q3 2024
- Net interest margin declined to 2.70% from 2.97% year-over-year
- Nonperforming assets increased $11.7 million year-to-date
- Classified loans increased to 2.71% of total loans from 2.12% at year-end 2023
Insights
The Q3 2024 results reflect significant challenges with a
- Net interest margin declined to
2.70% from2.97% year-over-year - Return on average equity at
-4.91% - Nonperforming assets increased significantly to
1.35% of total assets
However, some positive developments include deposit growth of
PORT ANGELES, Wash., Oct. 29, 2024 (GLOBE NEWSWIRE) --
CEO Commentary
"This was a quarter of mixed results. Progress on customer deposit gathering and the termination of the FDIC Consent Order was overshadowed by a quarterly loss driven by additional provisions primarily related to certain equity loans made to high net worth, accredited investors.
The teamwork and collaboration between Staff, Management and the Board to address the matters identified in the Consent Order is demonstrative of the qualifications, determination and capabilities of the First Fed team. We appreciate that the FDIC acknowledged the planning, monitoring and execution required to comply with the Order and validation that all of these matters were properly addressed. I am very proud of this accomplishment, and I would like to thank all of the many people within the bank who worked tirelessly to reach this achievement less than one year after the Order was issued.
Through an internal review of our loan portfolio and with consultation with our prudential regulators, it was determined that larger provisions were required in the second quarter of 2024. As a result, we decided it was appropriate to file a restated quarterly report on Form 10-Q for the quarter ended June 30, 2024, and identified a material weakness in the design of certain internal controls. The loans for which we increased reserves were originated between 2020 and 2023. More recent vintages of our loan portfolio are performing well as we have engaged in lending and partnerships that we have evaluated as having a relatively lower risk profile. The provision for credit losses after the amendment was
Management and the Board of Directors take the reported material weakness very seriously. We have taken corrective action to address the basis for the restatement and are working to promptly remediate.
We also acknowledge the ongoing lawsuits filed by some of the Water Station equipment borrowers. We intend to vigorously defend against these claims, which we believe are meritless. We also intend to continue pursuing collection of all monies owed by the litigants using all available legal means.
Moving forward, the highly capable bankers at First Fed are focused on continuing to build relationships with small businesses and individuals in the communities we serve. We continue to pursue inroads in SBA, treasury, maritime lending, first and second mortgage lending and community banking. We are introducing products and services to meet our customers where they are and to enhance their overall experience with First Fed. We believe that focusing on these fundamentals of Community Banking will improve our results and our overall franchise value."
-- Matthew P. Deines, President and CEO, First Northwest Bancorp
2024 FINANCIAL RESULTS | 3Q 24 | 2Q 24 | 3Q 23 | 2024 YTD | 2023 YTD | |||||||||||||||
OPERATING RESULTS (in millions) | ||||||||||||||||||||
Net (loss) income | $ | (2.0 | ) | $ | (2.2 | ) | $ | 2.5 | $ | (3.8 | ) | $ | 7.8 | |||||||
Pre-provision net interest income | 14.0 | 14.2 | 15.0 | 42.2 | 47.2 | |||||||||||||||
Provision for credit losses | 3.1 | 8.7 | 0.4 | 12.8 | 0.2 | |||||||||||||||
Noninterest expense | 15.8 | 15.6 | 14.4 | 45.8 | 44.5 | |||||||||||||||
Total revenue, net of interest expense * | 15.8 | 21.6 | 17.9 | 53.5 | 54.2 | |||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Basic and diluted (loss) earnings | $ | (0.23 | ) | $ | (0.25 | ) | $ | 0.28 | $ | (0.43 | ) | $ | 0.87 | |||||||
Book value | 17.17 | 16.81 | 16.20 | 17.17 | 16.20 | |||||||||||||||
Tangible book value * | 17.00 | 16.64 | 16.03 | 17.00 | 16.03 | |||||||||||||||
BALANCE SHEET (in millions) | ||||||||||||||||||||
Total assets | $ | 2,255 | $ | 2,216 | $ | 2,154 | $ | 2,255 | $ | 2,154 | ||||||||||
Total loans | 1,735 | 1,698 | 1,635 | 1,735 | 1,635 | |||||||||||||||
Total deposits | 1,712 | 1,708 | 1,658 | 1,712 | 1,658 | |||||||||||||||
Total shareholders' equity | 161 | 159 | 156 | 161 | 156 | |||||||||||||||
ASSET QUALITY | ||||||||||||||||||||
Net charge-off ratio(1) | 0.10 | % | 1.70 | % | 0.30 | % | 0.67 | % | 0.10 | % | ||||||||||
Nonperforming assets to total assets | 1.35 | 1.07 | 0.11 | 1.35 | 0.11 | |||||||||||||||
Allowance for credit losses on loans | ||||||||||||||||||||
to total loans | 1.27 | 1.14 | 1.04 | 1.27 | 1.04 | |||||||||||||||
Nonaccrual loan coverage ratio | 72 | 82 | 714 | 72 | 714 | |||||||||||||||
(1) Performance ratios are annualized, where appropriate. *See reconciliation of Non-GAAP Financial Measures later in this release. | ||||||||||||||||||||
2024 FINANCIAL RESULTS (Continued) | 3Q 24 | 2Q 24 | 3Q 23 | 2024 YTD | 2023 YTD | |||||||||||||||
SELECTED RATIOS | ||||||||||||||||||||
Return on average assets(1) | -0.36 | % | -0.40 | % | 0.46 | % | -0.23 | % | 0.50 | % | ||||||||||
Return on average equity(1) | -4.91 | -5.47 | 6.17 | -3.14 | 6.50 | |||||||||||||||
Return on average tangible common equity(1) * | -4.96 | -5.53 | 6.23 | -3.17 | 6.57 | |||||||||||||||
Net interest margin | 2.70 | 2.76 | 2.97 | 2.74 | 3.22 | |||||||||||||||
Efficiency ratio | 100.31 | 72.32 | 80.52 | 85.54 | 82.06 | |||||||||||||||
Bank common equity tier 1 (CETI) ratio | 12.20 | 12.40 | 13.43 | 12.20 | 13.43 | |||||||||||||||
Bank total risk-based capital ratio | 13.44 | 13.49 | 14.38 | 13.44 | 14.38 | |||||||||||||||
(1) Performance ratios are annualized, where appropriate. *See reconciliation of Non-GAAP Financial Measures later in this release. | ||||||||||||||||||||
2024 Significant Items as of September 30, 2024 | |
• | Year-to-date net loss of |
• | First Fed Bank ("First Fed" or the "Bank") balance sheet restructuring contributed to an improved year-to-date yield on earning assets by 16-basis points over the prior year end to |
- Sale-leaseback transaction completed in the second quarter, resulting in a | |
- Sold | |
- Purchased | |
- Continued conversion of lower-yielding bank-owned life insurance ("BOLI") with one conversion completed in the first quarter and an exchange in the third quarter. Two additional policy restructures expected to be completed by the end of the first quarter of 2025. | |
• | Net interest margin decreased over the prior year end from |
• | Loan mix shifted away from construction and commercial real estate into commercial business, auto, multi-family real estate, one-to-four family and home equity compared to the prior year end. The weighted-average rate on new loans year-to-date was |
• | Borrowings increased |
• | Repurchased 214,132 shares during the first quarter, which closed out the October 2020 Stock Repurchase Plan. |
• | Repurchased 98,156 shares during the third quarter under the new share repurchase plan approved in April 2024. |
• | Year-to-date deposit growth of |
• | Estimated insured deposits totaled |
• | Classified loans increased to |
• | Nonperforming assets increased |
• | Completed a reduction-in-force impacting |
First Northwest Bancorp (Nasdaq: FNWB) ("First Northwest" or the "Company") today reported a net loss of
The Bank recorded reserves on individually analyzed loans totaling
Steps taken to restructure the Bank's balance sheet continue to have a positive impact. The fair value hedge on loans, tied to the compounded overnight index swap using the secured overnight financing rate index, established in the first quarter of 2024 added
The balance sheet restructure plan also includes the conversion of BOLI policies in order to reinvest in higher yielding products. The first
Net Interest Income
Total interest income decreased
Total interest expense decreased
Net interest income before provision for credit losses for the third quarter of 2024 decreased
The Company recorded a
The net interest margin decreased to
The yield on average earning assets for the third quarter of 2024 decreased 11-basis points to
The cost of average interest-bearing liabilities decreased 5-basis points to
The increase in cost of average interest-bearing liabilities 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. The mix of retail deposit balances shifted from no or low-cost transaction and savings accounts towards higher cost term certificate and higher yield money market accounts. Retail CDs represented
Selected Yields | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 23 | 3Q 23 | |||||||||||||||
Loan yield | 5.51 | % | 5.62 | % | 5.51 | % | 5.38 | % | 5.31 | % | ||||||||||
Investment securities yield | 4.90 | 5.01 | 4.75 | 4.53 | 4.18 | |||||||||||||||
Cost of interest-bearing deposits | 3.00 | 2.91 | 2.86 | 2.52 | 2.22 | |||||||||||||||
Cost of total deposits | 2.56 | 2.47 | 2.43 | 2.12 | 1.85 | |||||||||||||||
Cost of borrowed funds | 4.35 | 4.76 | 4.52 | 4.50 | 4.45 | |||||||||||||||
Net interest spread | 2.21 | 2.27 | 2.28 | 2.40 | 2.54 | |||||||||||||||
Net interest margin | 2.70 | 2.76 | 2.76 | 2.84 | 2.97 | |||||||||||||||
Noninterest Income
Noninterest income decreased to
Noninterest income decreased
Noninterest Income | ||||||||||||||||||||
$ in thousands | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 23 | 3Q 23 | |||||||||||||||
Loan and deposit service fees | $ | 1,059 | $ | 1,076 | $ | 1,102 | 1,068 | $ | 1,068 | |||||||||||
Sold loan servicing fees and servicing rights mark-to-market | 10 | 74 | 219 | 276 | 98 | |||||||||||||||
Net gain on sale of loans | 58 | 150 | 52 | 33 | 171 | |||||||||||||||
Net (loss) gain on sale of investment securities | — | (2,117 | ) | — | (5,397 | ) | — | |||||||||||||
Net gain on sale of premises and equipment | — | 7,919 | — | — | — | |||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 315 | 293 | 243 | 260 | 252 | |||||||||||||||
Other income | 337 | (48 | ) | 572 | 831 | 1,315 | ||||||||||||||
Total noninterest income | $ | 1,779 | $ | 7,347 | $ | 2,188 | $ | (2,929 | ) | $ | 2,904 | |||||||||
Noninterest Expense
Noninterest expense totaled
The increase in total noninterest expenses compared to the third quarter of 2023 is mainly due to current quarter one-time severance payouts of
Noninterest Expense | ||||||||||||||||||||
$ in thousands | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 23 | 3Q 23 | |||||||||||||||
Compensation and benefits | $ | 8,582 | $ | 8,588 | $ | 8,128 | $ | 7,397 | $ | 7,795 | ||||||||||
Data processing | 2,085 | 2,008 | 1,944 | 2,107 | 1,945 | |||||||||||||||
Occupancy and equipment | 1,553 | 1,799 | 1,240 | 1,262 | 1,173 | |||||||||||||||
Supplies, postage, and telephone | 360 | 317 | 293 | 351 | 292 | |||||||||||||||
Regulatory assessments and state taxes | 548 | 457 | 513 | 376 | 446 | |||||||||||||||
Advertising | 409 | 377 | 309 | 235 | 501 | |||||||||||||||
Professional fees | 698 | 684 | 910 | 1,119 | 929 | |||||||||||||||
FDIC insurance premium | 533 | 473 | 386 | 418 | 369 | |||||||||||||||
Other expense | 1,080 | 906 | 580 | 3,725 | 926 | |||||||||||||||
Total noninterest expense | $ | 15,848 | $ | 15,609 | $ | 14,303 | $ | 16,990 | $ | 14,376 | ||||||||||
Efficiency ratio | 100.31 | % | 72.32 | % | 88.75 | % | 150.81 | % | 80.52 | % | ||||||||||
Investment Securities
Investment securities increased
The estimated average life of the securities portfolio was approximately 7.4 years at September 30, 2024, 7.8 years at the prior quarter end and 7.7 years for the third quarter of 2023. The effective duration of the portfolio was approximately 3.9 years at September 30, 2024, compared to 4.3 years in the prior quarter and 4.9 years at the end of the third quarter of 2023. Our recent investment purchases 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 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 23 | 3Q 23 | |||||||||||||||
Municipal bonds | $ | 81,363 | $ | 78,825 | $ | 87,004 | $ | 87,761 | $ | 93,995 | ||||||||||
U.S. Treasury notes | — | — | — | — | 2,377 | |||||||||||||||
International agency issued bonds (Agency bonds) | — | — | — | — | 1,703 | |||||||||||||||
U.S. government agency issued asset-backed securities (ABS agency) | 13,296 | 13,982 | 14,822 | 11,782 | — | |||||||||||||||
Corporate issued asset-backed securities (ABS corporate) | 16,391 | 16,483 | 13,929 | 5,286 | — | |||||||||||||||
Corporate issued debt securities (Corporate debt): | ||||||||||||||||||||
Senior positions | 10,241 | 9,066 | 13,617 | 9,270 | 16,975 | |||||||||||||||
Subordinated bank notes | 43,817 | 43,826 | 39,414 | 42,184 | 37,360 | |||||||||||||||
U.S. Small Business Administration securities (SBA) | 9,317 | 9,772 | 7,911 | — | — | |||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. government agency issued mortgage-backed securities (MBS agency) | 78,549 | 77,301 | 83,271 | 63,247 | 66,946 | |||||||||||||||
Non-agency issued mortgage-backed securities (MBS non-agency) | 57,886 | 57,459 | 65,987 | 76,093 | 89,968 | |||||||||||||||
Total securities available for sale, at fair value | $ | 310,860 | $ | 306,714 | $ | 325,955 | $ | 295,623 | $ | 309,324 | ||||||||||
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 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 23 | 3Q 23 | |||||||||||||||
One-to-four family construction | $ | 51,607 | $ | 49,440 | $ | 70,100 | $ | 60,211 | $ | 72,991 | ||||||||||
All other construction and land | 45,166 | 58,346 | 55,286 | 69,484 | 71,092 | |||||||||||||||
One-to-four family first mortgage | 469,053 | 434,840 | 436,543 | 426,159 | 409,207 | |||||||||||||||
One-to-four family junior liens | 14,701 | 13,706 | 12,608 | 12,250 | 12,859 | |||||||||||||||
One-to-four family revolving open-end | 48,459 | 44,803 | 45,536 | 42,479 | 38,413 | |||||||||||||||
Commercial real estate, owner occupied: | ||||||||||||||||||||
Health care | 29,407 | 29,678 | 29,946 | 22,523 | 22,677 | |||||||||||||||
Office | 17,901 | 19,215 | 17,951 | 18,468 | 18,599 | |||||||||||||||
Warehouse | 11,645 | 14,613 | 14,683 | 14,758 | 14,890 | |||||||||||||||
Other | 64,535 | 56,292 | 55,063 | 61,304 | 57,414 | |||||||||||||||
Commercial real estate, non-owner occupied: | ||||||||||||||||||||
Office | 49,770 | 50,158 | 53,099 | 53,548 | 53,879 | |||||||||||||||
Retail | 49,717 | 50,101 | 50,478 | 51,384 | 51,466 | |||||||||||||||
Hospitality | 62,282 | 62,628 | 66,982 | 67,332 | 61,339 | |||||||||||||||
Other | 82,573 | 84,428 | 93,040 | 94,822 | 96,083 | |||||||||||||||
Multi-family residential | 354,118 | 350,382 | 339,907 | 333,428 | 325,338 | |||||||||||||||
Commercial business loans | 86,904 | 79,055 | 90,781 | 76,920 | 75,068 | |||||||||||||||
Commercial agriculture and fishing loans | 15,369 | 14,411 | 10,200 | 5,422 | 4,437 | |||||||||||||||
State and political subdivision obligations | 404 | 405 | 405 | 405 | 439 | |||||||||||||||
Consumer automobile loans | 144,036 | 151,121 | 139,524 | 132,877 | 134,695 | |||||||||||||||
Consumer loans secured by other assets | 132,749 | 129,293 | 122,895 | 108,542 | 104,999 | |||||||||||||||
Consumer loans unsecured | 4,411 | 5,209 | 6,415 | 7,712 | 9,093 | |||||||||||||||
Total loans | $ | 1,734,807 | $ | 1,698,124 | $ | 1,711,442 | $ | 1,660,028 | $ | 1,634,978 | ||||||||||
Unfunded commitments under lines of credit or existing loans | $ | 166,446 | $ | 155,005 | $ | 148,736 | $ | 149,631 | $ | 154,722 | ||||||||||
Deposits
Total deposits increased
The Company estimates that
As of September 30, 2024, consumer deposits made up
Deposits | ||||||||||||||||||||
$ in thousands | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 23 | 3Q 23 | |||||||||||||||
Noninterest-bearing demand deposits | $ | 252,999 | $ | 276,543 | $ | 252,083 | $ | 269,800 | $ | 280,475 | ||||||||||
Interest-bearing demand deposits | 167,202 | 162,201 | 169,418 | 182,361 | 179,029 | |||||||||||||||
Money market accounts | 433,307 | 423,047 | 362,205 | 372,706 | 374,269 | |||||||||||||||
Savings accounts | 212,763 | 224,631 | 242,148 | 253,182 | 260,279 | |||||||||||||||
Certificates of deposit, retail | 441,665 | 398,161 | 443,412 | 410,136 | 379,484 | |||||||||||||||
Total retail deposits | 1,507,936 | 1,484,583 | 1,469,266 | 1,488,185 | 1,473,536 | |||||||||||||||
Certificates of deposit, brokered | 203,705 | 223,705 | 207,626 | 169,577 | 179,586 | |||||||||||||||
Total deposits | $ | 1,711,641 | $ | 1,708,288 | $ | 1,676,892 | $ | 1,657,762 | $ | 1,653,122 | ||||||||||
Public fund and tribal deposits included in total deposits | $ | 139,729 | $ | 138,439 | $ | 132,652 | $ | 128,627 | $ | 130,974 | ||||||||||
Total loans to total deposits | 101 | % | 99 | % | 102 | % | 100 | % | 99 | % | ||||||||||
Deposit Mix | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 23 | 3Q 23 | |||||||||||||||
Noninterest-bearing demand deposits | 14.8 | % | 16.2 | % | 15.0 | % | 16.3 | % | 17.0 | % | ||||||||||
Interest-bearing demand deposits | 9.8 | 9.5 | 10.1 | 11.0 | 10.8 | |||||||||||||||
Money market accounts | 25.3 | 24.8 | 21.6 | 22.5 | 22.6 | |||||||||||||||
Savings accounts | 12.4 | 13.1 | 14.4 | 15.3 | 15.7 | |||||||||||||||
Certificates of deposit, retail | 25.8 | 23.3 | 26.5 | 24.7 | 23.0 | |||||||||||||||
Certificates of deposit, brokered | 11.9 | 13.1 | 12.4 | 10.2 | 10.9 | |||||||||||||||
Cost of Deposits for the Quarter Ended | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 23 | 3Q 23 | |||||||||||||||
Interest-bearing demand deposits | 0.45 | % | 0.47 | % | 0.45 | % | 0.45 | % | 0.46 | % | ||||||||||
Money market accounts | 2.65 | 2.40 | 2.08 | 1.48 | 1.22 | |||||||||||||||
Savings accounts | 1.64 | 1.62 | 1.63 | 1.54 | 1.42 | |||||||||||||||
Certificates of deposit, retail | 4.16 | 4.10 | 4.13 | 3.92 | 3.52 | |||||||||||||||
Certificates of deposit, brokered | 4.88 | 4.94 | 4.94 | 4.72 | 4.31 | |||||||||||||||
Cost of total deposits | 2.56 | 2.47 | 2.43 | 2.12 | 1.85 | |||||||||||||||
Asset Quality
The allowance for credit losses on loans ("ACLL") increased
Nonperforming loans totaled
Classified loans increased
$ in thousands | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 23 | 3Q 23 | |||||||||||||||
Allowance for credit losses on loans to total loans | 1.27 | % | 1.14 | % | 1.05 | % | 1.05 | % | 1.04 | % | ||||||||||
Allowance for credit losses on loans to nonaccrual loans | 72 | 82 | 92 | 94 | 714 | |||||||||||||||
Nonaccrual loans to total loans | 1.75 | 1.39 | 1.14 | 1.12 | 0.15 | |||||||||||||||
Net charge-off ratio (annualized) | 0.10 | 1.70 | 0.19 | 0.14 | 0.30 | |||||||||||||||
Total nonaccrual loans | $ | 30,376 | $ | 23,631 | $ | 19,481 | $ | 18,644 | $ | 2,374 | ||||||||||
Reserve for unfunded commitments | $ | 704 | $ | 647 | $ | 548 | $ | 817 | $ | 828 | ||||||||||
Capital
Total shareholders’ equity increased 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 September 30, 2024. Common Equity Tier 1 and Total Risk-Based Capital Ratios at September 30, 2024, were
3Q 24 | 2Q 24 | 1Q 24 | 4Q 23 | 3Q 23 | ||||||||||||||||
Equity to total assets | 7.13 | % | 7.17 | % | 7.17 | % | 7.42 | % | 7.25 | % | ||||||||||
Tangible common equity to tangible assets * | 7.06 | 7.10 | 7.10 | 7.35 | 7.17 | |||||||||||||||
Capital ratios (First Fed Bank): | ||||||||||||||||||||
Tier 1 leverage | 9.39 | 9.38 | 9.74 | 9.90 | 10.12 | |||||||||||||||
Common equity Tier 1 capital | 12.20 | 12.40 | 12.56 | 13.12 | 13.43 | |||||||||||||||
Tier 1 risk-based | 12.20 | 12.40 | 12.56 | 13.12 | 13.43 | |||||||||||||||
Total risk-based | 13.44 | 13.49 | 13.57 | 14.11 | 14.38 | |||||||||||||||
Share Repurchase Program and Cash Dividend
First Northwest continued to return capital to our shareholders through cash dividends and share repurchases during the third quarter of 2024. We repurchased 98,156 shares of common stock under the Company's April 2024 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 September 2024, the First Fed team was recognized in the 2024 Best of Olympic Peninsula surveys, winning Best Bank and Best Lender in Clallam County; Best Bank and Best Financial Advisor in the West End; and Best Lender in Jefferson County. First Fed was also a finalist for Best Bank, Best Customer Service, Best Employer and Best Financial Advisor in Jefferson County; Best Customer Service, Best Employer and Best Financial Advisor in Clallam County; and Best Customer Service and Best Employer in the West End. | |
In May 2024, First Fed, along with the First Fed Community Foundation, were honored to be ranked second on the Puget Sound Business Journal Midsize Corporate Philanthropists list. | |
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 as a finalist for Best Employer in Kitsap County and Best Bank and Best Financial Institution in Bainbridge. | |
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, including our ability to collect, the outcome of litigation 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; the risk of inaccuracies in the reporting of our financial condition as a result of the material weakness in our internal controls; 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)
September 30, 2024 | June 30, 2024 | September 30, 2023 | Three Month Change | One Year Change | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 17,953 | $ | 19,184 | $ | 20,609 | -6.4 | % | -12.9 | % | ||||||||||
Interest-earning deposits in banks | 64,769 | 63,995 | 63,277 | 1.2 | 2.4 | |||||||||||||||
Investment securities available for sale, at fair value | 310,860 | 306,714 | 309,324 | 1.4 | 0.5 | |||||||||||||||
Loans held for sale | 378 | 1,086 | 689 | -65.2 | -45.1 | |||||||||||||||
Loans receivable (net of allowance for credit losses on loans | 1,714,416 | 1,677,764 | 1,618,033 | 2.2 | 6.0 | |||||||||||||||
Federal Home Loan Bank (FHLB) stock, at cost | 14,435 | 13,086 | 12,621 | 10.3 | 14.4 | |||||||||||||||
Accrued interest receivable | 8,939 | 9,466 | 8,093 | -5.6 | 10.5 | |||||||||||||||
Premises and equipment, net | 10,436 | 10,714 | 17,954 | -2.6 | -41.9 | |||||||||||||||
Servicing rights on sold loans, at fair value | 3,584 | 3,740 | 3,729 | -4.2 | -3.9 | |||||||||||||||
Bank-owned life insurance, net | 41,429 | 41,113 | 40,318 | 0.8 | 2.8 | |||||||||||||||
Equity and partnership investments | 14,912 | 15,085 | 14,623 | -1.1 | 2.0 | |||||||||||||||
Goodwill and other intangible assets, net | 1,083 | 1,084 | 1,087 | -0.1 | -0.4 | |||||||||||||||
Deferred tax asset, net | 10,802 | 12,216 | 16,611 | -11.6 | -35.0 | |||||||||||||||
Prepaid expenses and other assets | 41,490 | 40,715 | 26,577 | 1.9 | 56.1 | |||||||||||||||
Total assets | $ | 2,255,486 | $ | 2,215,962 | $ | 2,153,545 | 1.8 | % | 4.7 | % | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Deposits | $ | 1,711,641 | $ | 1,708,288 | $ | 1,657,762 | 0.2 | % | 3.3 | % | ||||||||||
Borrowings | 334,994 | 302,575 | 300,416 | 10.7 | 11.5 | |||||||||||||||
Accrued interest payable | 2,153 | 3,143 | 2,276 | -31.5 | -5.4 | |||||||||||||||
Accrued expenses and other liabilities | 43,424 | 41,771 | 34,651 | 4.0 | 25.3 | |||||||||||||||
Advances from borrowers for taxes and insurance | 2,485 | 1,304 | 2,375 | 90.6 | 4.6 | |||||||||||||||
Total liabilities | 2,094,697 | 2,057,081 | 1,997,480 | 1.8 | 4.9 | |||||||||||||||
Shareholders' Equity | ||||||||||||||||||||
Preferred stock, | — | — | — | n/a | n/a | |||||||||||||||
Common stock, | 94 | 94 | 96 | 0.0 | -2.1 | |||||||||||||||
Additional paid-in capital | 93,218 | 93,985 | 95,658 | -0.8 | -2.6 | |||||||||||||||
Retained earnings | 100,660 | 103,322 | 113,579 | -2.6 | -11.4 | |||||||||||||||
Accumulated other comprehensive loss, net of tax | (26,424 | ) | (31,597 | ) | (45,850 | ) | 16.4 | 42.4 | ||||||||||||
Unearned employee stock ownership plan (ESOP) shares | (6,759 | ) | (6,923 | ) | (7,418 | ) | 2.4 | 8.9 | ||||||||||||
Total shareholders' equity | 160,789 | 158,881 | 156,065 | 1.2 | 3.0 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,255,486 | $ | 2,215,962 | $ | 2,153,545 | 1.8 | % | 4.7 | % | ||||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data) (Unaudited)
Quarter Ended | ||||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | Three Month Change | One Year Change | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Interest and fees on loans receivable | $ | 23,536 | $ | 23,733 | $ | 21,728 | -0.8 | % | 8.3 | % | ||||||||||
Interest on investment securities | 3,786 | 3,949 | 3,368 | -4.1 | 12.4 | |||||||||||||||
Interest on deposits in banks | 582 | 571 | 524 | 1.9 | 11.1 | |||||||||||||||
FHLB dividends | 302 | 358 | 214 | -15.6 | 41.1 | |||||||||||||||
Total interest income | 28,206 | 28,611 | 25,834 | -1.4 | 9.2 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 10,960 | 10,180 | 7,699 | 7.7 | 42.4 | |||||||||||||||
Borrowings | 3,226 | 4,196 | 3,185 | -23.1 | 1.3 | |||||||||||||||
Total interest expense | 14,186 | 14,376 | 10,884 | -1.3 | 30.3 | |||||||||||||||
Net interest income | 14,020 | 14,235 | 14,950 | -1.5 | -6.2 | |||||||||||||||
PROVISION FOR CREDIT LOSSES | ||||||||||||||||||||
Provision for credit losses on loans | 3,077 | 8,640 | 880 | -64.4 | 249.7 | |||||||||||||||
Provision for (recapture of) credit losses on unfunded commitments | 57 | 99 | (509 | ) | -42.4 | 111.2 | ||||||||||||||
Provision for credit losses | 3,134 | 8,739 | 371 | -64.1 | 744.7 | |||||||||||||||
Net interest income after provision for credit losses | 10,886 | 5,496 | 14,579 | 98.1 | -25.3 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Loan and deposit service fees | 1,059 | 1,076 | 1,068 | -1.6 | -0.8 | |||||||||||||||
Sold loan servicing fees and servicing rights mark-to-market | 10 | 74 | 98 | -86.5 | -89.8 | |||||||||||||||
Net gain on sale of loans | 58 | 150 | 171 | -61.3 | -66.1 | |||||||||||||||
Net loss on sale of investment securities | — | (2,117 | ) | — | 100.0 | n/a | ||||||||||||||
Net gain on sale of premises and equipment | — | 7,919 | — | -100.0 | n/a | |||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 315 | 293 | 252 | 7.5 | 25.0 | |||||||||||||||
Other income | 337 | (48 | ) | 1,315 | 802.1 | -74.4 | ||||||||||||||
Total noninterest income | 1,779 | 7,347 | 2,904 | -75.8 | -38.7 | |||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Compensation and benefits | 8,582 | 8,588 | 7,795 | -0.1 | 10.1 | |||||||||||||||
Data processing | 2,085 | 2,008 | 1,945 | 3.8 | 7.2 | |||||||||||||||
Occupancy and equipment | 1,553 | 1,799 | 1,173 | -13.7 | 32.4 | |||||||||||||||
Supplies, postage, and telephone | 360 | 317 | 292 | 13.6 | 23.3 | |||||||||||||||
Regulatory assessments and state taxes | 548 | 457 | 446 | 19.9 | 22.9 | |||||||||||||||
Advertising | 409 | 377 | 501 | 8.5 | -18.4 | |||||||||||||||
Professional fees | 698 | 684 | 929 | 2.0 | -24.9 | |||||||||||||||
FDIC insurance premium | 533 | 473 | 369 | 12.7 | 44.4 | |||||||||||||||
Other expense | 1,080 | 906 | 926 | 19.2 | 16.6 | |||||||||||||||
Total noninterest expense | 15,848 | 15,609 | 14,376 | 1.5 | 10.2 | |||||||||||||||
(Loss) income before (benefit) provision for income taxes | (3,183 | ) | (2,766 | ) | 3,107 | -15.1 | -202.4 | |||||||||||||
(Benefit) provision for income taxes | (1,203 | ) | (547 | ) | 603 | -119.9 | -299.5 | |||||||||||||
Net (loss) income | $ | (1,980 | ) | $ | (2,219 | ) | $ | 2,504 | 10.8 | % | -179.1 | % | ||||||||
Basic and diluted (loss) earnings per common share | $ | (0.23 | ) | $ | (0.25 | ) | $ | 0.28 | 8.0 | % | -182.1 | % | ||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data) (Unaudited)
Nine Months Ended September 30, | Percent | |||||||||||
2024 | 2023 | Change | ||||||||||
INTEREST INCOME | ||||||||||||
Interest and fees on loans receivable | $ | 70,036 | $ | 62,531 | 12.0 | % | ||||||
Interest on investment securities | 11,367 | 9,886 | 15.0 | |||||||||
Interest on deposits in banks | 1,798 | 1,545 | 16.4 | |||||||||
FHLB dividends | 942 | 628 | 50.0 | |||||||||
Total interest income | 84,143 | 74,590 | 12.8 | |||||||||
INTEREST EXPENSE | ||||||||||||
Deposits | 31,252 | 18,261 | 71.1 | |||||||||
Borrowings | 10,708 | 9,092 | 17.8 | |||||||||
Total interest expense | 41,960 | 27,353 | 53.4 | |||||||||
Net interest income | 42,183 | 47,237 | -10.7 | |||||||||
PROVISION FOR CREDIT LOSSES | ||||||||||||
Provision for credit losses on loans | 12,956 | 1,195 | 984.2 | |||||||||
(Recapture of) provision for credit losses on unfunded commitments | (113 | ) | (1,024 | ) | 89.0 | |||||||
Provision for credit losses | 12,843 | 171 | 7,410.5 | |||||||||
Net interest income after provision for credit losses | 29,340 | 47,066 | -37.7 | |||||||||
NONINTEREST INCOME | ||||||||||||
Loan and deposit service fees | 3,237 | 3,273 | -1.1 | |||||||||
Sold loan servicing fees and servicing rights mark-to-market | 303 | 400 | -24.3 | |||||||||
Net gain on sale of loans | 260 | 405 | -35.8 | |||||||||
Net loss on sale of investment securities | (2,117 | ) | — | 100.0 | ||||||||
Net gain on sale of premises and equipment | 7,919 | — | 100.0 | |||||||||
Increase in cash surrender value of bank-owned life insurance | 851 | 668 | 27.4 | |||||||||
Other income | 861 | 2,203 | -60.9 | |||||||||
Total noninterest income | 11,314 | 6,949 | 62.8 | |||||||||
NONINTEREST EXPENSE | ||||||||||||
Compensation and benefits | 25,298 | 23,812 | 6.2 | |||||||||
Data processing | 6,037 | 6,063 | -0.4 | |||||||||
Occupancy and equipment | 4,592 | 3,596 | 27.7 | |||||||||
Supplies, postage, and telephone | 970 | 1,082 | -10.4 | |||||||||
Regulatory assessments and state taxes | 1,518 | 1,259 | 20.6 | |||||||||
Advertising | 1,095 | 2,471 | -55.7 | |||||||||
Professional fees | 2,292 | 2,619 | -12.5 | |||||||||
FDIC insurance premium | 1,392 | 939 | 48.2 | |||||||||
Other | 2,566 | 2,623 | -2.2 | |||||||||
Total noninterest expense | 45,760 | 44,464 | 2.9 | |||||||||
(Loss) income before (benefit) provision for income taxes | (5,106 | ) | 9,551 | -153.5 | ||||||||
(Benefit) provision for income taxes | (1,303 | ) | 1,903 | -168.5 | ||||||||
Net (loss) income | (3,803 | ) | 7,648 | -149.7 | ||||||||
Net loss attributable to noncontrolling interest in Quin Ventures, Inc. | — | 160 | -100.0 | |||||||||
Net (loss) income attributable to parent | $ | (3,803 | ) | $ | 7,808 | -148.7 | % | |||||
Basic and diluted (loss) earnings per common share | $ | (0.43 | ) | $ | 0.87 | -149.4 | % | |||||
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 | ||||||||||||||||||||
September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||
Performance ratios:(1) | ||||||||||||||||||||
Return on average assets | -0.36 | % | -0.40 | % | 0.07 | % | -1.03 | % | 0.46 | % | ||||||||||
Return on average equity | -4.91 | -5.47 | 0.98 | -14.05 | 6.17 | |||||||||||||||
Average interest rate spread | 2.21 | 2.27 | 2.28 | 2.40 | 2.54 | |||||||||||||||
Net interest margin(2) | 2.70 | 2.76 | 2.76 | 2.84 | 2.97 | |||||||||||||||
Efficiency ratio(3) | 100.3 | 72.3 | 88.8 | 150.8 | 80.5 | |||||||||||||||
Equity to total assets | 7.13 | 7.17 | 7.17 | 7.42 | 7.25 | |||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 118.0 | 117.6 | 118.3 | 118.2 | 120.0 | |||||||||||||||
Book value per common share | $ | 17.17 | $ | 16.81 | $ | 17.00 | $ | 16.99 | $ | 16.20 | ||||||||||
Tangible performance ratios:(1) | ||||||||||||||||||||
Tangible common equity to tangible assets(4) | 7.06 | % | 7.10 | % | 7.10 | % | 7.35 | % | 7.17 | % | ||||||||||
Return on average tangible common equity(4) | -4.96 | -5.53 | 0.99 | -14.20 | 6.23 | |||||||||||||||
Tangible book value per common share(4) | $ | 17.00 | $ | 16.64 | $ | 16.83 | $ | 16.83 | $ | 16.03 | ||||||||||
Asset quality ratios: | ||||||||||||||||||||
Nonperforming assets to total assets at end of period(5) | 1.35 | % | 1.07 | % | 0.87 | % | 0.85 | % | 0.11 | % | ||||||||||
Nonaccrual loans to total loans(6) | 1.75 | 1.39 | 1.14 | 1.12 | 0.15 | |||||||||||||||
Allowance for credit losses on loans to nonaccrual loans(6) | 72.33 | 81.85 | 92.18 | 93.92 | 713.77 | |||||||||||||||
Allowance for credit losses on loans to total loans | 1.27 | 1.14 | 1.05 | 1.05 | 1.04 | |||||||||||||||
Annualized net charge-offs to average outstanding loans | 0.10 | 1.70 | 0.19 | 0.14 | 0.30 | |||||||||||||||
Capital ratios (First Fed Bank): | ||||||||||||||||||||
Tier 1 leverage | 9.4 | % | 9.4 | % | 9.7 | % | 9.9 | % | 10.1 | % | ||||||||||
Common equity Tier 1 capital | 12.2 | 12.4 | 12.6 | 13.1 | 13.4 | |||||||||||||||
Tier 1 risk-based | 12.2 | 12.4 | 12.6 | 13.1 | 13.4 | |||||||||||||||
Total risk-based | 13.4 | 13.5 | 13.6 | 14.1 | 14.4 | |||||||||||||||
Other Information: | ||||||||||||||||||||
Average total assets | $ | 2,209,333 | $ | 2,219,370 | $ | 2,166,187 | $ | 2,127,655 | $ | 2,139,734 | ||||||||||
Average total loans | 1,718,402 | 1,717,830 | 1,678,656 | 1,645,418 | 1,641,206 | |||||||||||||||
Average interest-earning assets | 2,061,970 | 2,072,280 | 2,027,821 | 1,980,226 | 1,994,251 | |||||||||||||||
Average noninterest-bearing deposits | 252,911 | 251,442 | 249,283 | 259,845 | 276,294 | |||||||||||||||
Average interest-bearing deposits | 1,452,817 | 1,408,018 | 1,422,116 | 1,379,059 | 1,377,734 | |||||||||||||||
Average interest-bearing liabilities | 1,747,649 | 1,762,858 | 1,714,474 | 1,675,044 | 1,661,996 | |||||||||||||||
Average equity | 160,479 | 163,079 | 161,867 | 155,971 | 160,994 | |||||||||||||||
Average common shares -- basic | 8,756,765 | 8,783,086 | 8,876,236 | 8,928,620 | 8,906,526 | |||||||||||||||
Average common shares -- diluted | 8,756,765 | 8,783,086 | 8,907,184 | 8,968,828 | 8,934,882 | |||||||||||||||
Tangible assets(4) | 2,253,914 | 2,214,361 | 2,238,446 | 2,200,230 | 2,151,849 | |||||||||||||||
Tangible common equity(4) | 159,217 | 157,280 | 158,932 | 161,773 | 154,369 |
(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
Selected Financial Ratios and Other Data
(Dollars in thousands, except per share data) (Unaudited)
As of or For the Nine Months Ended September 30, | ||||||||
2024 | 2023 | |||||||
Performance ratios:(1) | ||||||||
Return on average assets | -0.23 | % | 0.50 | % | ||||
Return on average equity | -3.14 | 6.50 | ||||||
Average interest rate spread | 2.25 | 2.83 | ||||||
Net interest margin(2) | 2.74 | 3.22 | ||||||
Efficiency ratio(3) | 85.54 | 82.06 | ||||||
Equity to total assets | 7.13 | 7.25 | ||||||
Average interest-earning assets to average interest-bearing liabilities | 117.9 | 121.0 | ||||||
Book value per common share | $ | 17.17 | $ | 16.20 | ||||
Tangible performance ratios:(1) | ||||||||
Tangible common equity to tangible assets(4) | 7.06 | % | 7.17 | % | ||||
Return on average tangible common equity(4) | -3.17 | 6.57 | ||||||
Tangible book value per common share(4) | $ | 17.00 | $ | 16.03 | ||||
Asset quality ratios: | ||||||||
Nonperforming assets to total assets at end of period(5) | 1.35 | % | 0.11 | % | ||||
Nonaccrual loans to total loans(6) | 1.75 | 0.15 | ||||||
Allowance for credit losses on loans to nonaccrual loans(6) | 72.33 | 713.77 | ||||||
Allowance for credit losses on loans to total loans | 1.27 | 1.04 | ||||||
Annualized net charge-offs to average outstanding loans | 0.67 | 0.10 | ||||||
Capital ratios (First Fed Bank): | ||||||||
Tier 1 leverage | 9.4 | % | 10.1 | % | ||||
Common equity Tier 1 capital | 12.2 | 13.4 | ||||||
Tier 1 risk-based | 12.2 | 13.4 | ||||||
Total risk-based | 13.4 | 14.4 | ||||||
Other Information: | ||||||||
Average total assets | $ | 2,198,337 | $ | 2,102,980 | ||||
Average total loans | 1,705,088 | 1,698,394 | ||||||
Average interest-earning assets | 2,054,052 | 1,959,946 | ||||||
Average noninterest-bearing deposits | 251,218 | 284,282 | ||||||
Average interest-bearing deposits | 1,427,743 | 1,333,696 | ||||||
Average interest-bearing liabilities | 1,741,683 | 1,619,763 | ||||||
Average equity | 161,803 | 160,573 | ||||||
Average common shares -- basic | 8,805,124 | 8,910,391 | ||||||
Average common shares -- diluted | 8,805,124 | 8,930,404 | ||||||
Tangible assets(4) | 2,253,914 | 2,151,849 | ||||||
Tangible common equity(4) | 159,217 | 154,369 |
(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)
September 30, 2024 | June 30, 2024 | September 30, 2023 | Three Month Change | One Year Change | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Real Estate: | ||||||||||||||||||||
One-to-four family | $ | 395,792 | $ | 389,934 | $ | 369,950 | $ | 5,858 | $ | 25,842 | ||||||||||
Multi-family | 353,813 | 350,076 | 325,496 | 3,737 | 28,317 | |||||||||||||||
Commercial real estate | 376,008 | 375,511 | 381,508 | 497 | (5,500 | ) | ||||||||||||||
Construction and land | 95,709 | 107,273 | 143,434 | (11,564 | ) | (47,725 | ) | |||||||||||||
Total real estate loans | 1,221,322 | 1,222,794 | 1,220,388 | (1,472 | ) | 934 | ||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity | 76,960 | 72,613 | 64,424 | 4,347 | 12,536 | |||||||||||||||
Auto and other consumer | 281,198 | 285,623 | 248,786 | (4,425 | ) | 32,412 | ||||||||||||||
Total consumer loans | 358,158 | 358,236 | 313,210 | (78 | ) | 44,948 | ||||||||||||||
Commercial business | 155,327 | 117,094 | 101,380 | 38,233 | 53,947 | |||||||||||||||
Total loans receivable | 1,734,807 | 1,698,124 | 1,634,978 | 36,683 | 99,829 | |||||||||||||||
Less: | ||||||||||||||||||||
Derivative basis adjustment | (1,579 | ) | 1,017 | — | (2,596 | ) | (1,579 | ) | ||||||||||||
Allowance for credit losses on loans | 21,970 | 19,343 | 16,945 | 2,627 | 5,025 | |||||||||||||||
Total loans receivable, net | $ | 1,714,416 | $ | 1,677,764 | $ | 1,618,033 | $ | 36,652 | $ | 96,383 | ||||||||||
Selected loan detail:
September 30, 2024 | June 30, 2024 | September 30, 2023 | Three Month Change | One Year Change | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Construction and land loans breakout | ||||||||||||||||||||
1-4 Family construction | $ | 43,125 | $ | 56,514 | $ | 63,371 | $ | (13,389 | ) | $ | (20,246 | ) | ||||||||
Multifamily construction | 29,109 | 43,341 | 54,318 | (14,232 | ) | (25,209 | ) | |||||||||||||
Nonresidential construction | 17,500 | 1,015 | 18,746 | 16,485 | (1,246 | ) | ||||||||||||||
Land and development | 5,975 | 6,403 | 6,999 | (428 | ) | (1,024 | ) | |||||||||||||
Total construction and land loans | $ | 95,709 | $ | 107,273 | $ | 143,434 | $ | (11,564 | ) | $ | (47,725 | ) | ||||||||
Auto and other consumer loans breakout | ||||||||||||||||||||
Triad Manufactured Home loans | $ | 129,600 | $ | 125,906 | $ | 101,339 | $ | 3,694 | $ | 28,261 | ||||||||||
Woodside auto loans | 126,129 | 131,151 | 124,833 | (5,022 | ) | 1,296 | ||||||||||||||
First Help auto loans | 15,971 | 17,427 | 5,079 | (1,456 | ) | 10,892 | ||||||||||||||
Other auto loans | 2,064 | 2,690 | 5,022 | (626 | ) | (2,958 | ) | |||||||||||||
Other consumer loans | 7,434 | 8,449 | 12,513 | (1,015 | ) | (5,079 | ) | |||||||||||||
Total auto and other consumer loans | $ | 281,198 | $ | 285,623 | $ | 248,786 | $ | (4,425 | ) | $ | 32,412 | |||||||||
Commercial business loans breakout | ||||||||||||||||||||
PPP loans | $ | - | $ | 5 | $ | 45 | $ | (5 | ) | $ | (45 | ) | ||||||||
Northpointe Bank MPP | 38,155 | 9,150 | 162 | 29,005 | 37,993 | |||||||||||||||
Secured lines of credit | 37,686 | 28,862 | 35,833 | 8,824 | 1,853 | |||||||||||||||
Unsecured lines of credit | 1,571 | 1,133 | 919 | 438 | 652 | |||||||||||||||
SBA loans | 7,219 | 7,146 | 9,149 | 73 | (1,930 | ) | ||||||||||||||
Other commercial business loans | 70,696 | 70,798 | 55,272 | (102 | ) | 15,424 | ||||||||||||||
Total commercial business loans | $ | 155,327 | $ | 117,094 | $ | 101,380 | $ | 38,233 | $ | 53,947 | ||||||||||
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:
September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Net interest income | $ | 14,020 | $ | 14,235 | $ | 13,928 | $ | 14,195 | $ | 14,950 | ||||||||||
Noninterest income | 1,779 | 7,347 | 2,188 | (2,929 | ) | 2,904 | ||||||||||||||
Total revenue, net of interest expense(1) | $ | 15,799 | $ | 21,582 | $ | 16,116 | $ | 11,266 | $ | 17,854 | ||||||||||
(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:
September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Total shareholders' equity | $ | 160,789 | $ | 158,881 | $ | 160,506 | $ | 163,340 | $ | 156,065 | ||||||||||
Less: Goodwill and other intangible assets | 1,083 | 1,084 | 1,085 | 1,086 | 1,087 | |||||||||||||||
Disallowed non-mortgage loan servicing rights | 489 | 517 | 489 | 481 | 609 | |||||||||||||||
Total tangible common equity | $ | 159,217 | $ | 157,280 | $ | 158,932 | $ | 161,773 | $ | 154,369 | ||||||||||
Total assets | $ | 2,255,486 | $ | 2,215,962 | $ | 2,240,020 | $ | 2,201,797 | $ | 2,153,545 | ||||||||||
Less: Goodwill and other intangible assets | 1,083 | 1,084 | 1,085 | 1,086 | 1,087 | |||||||||||||||
Disallowed non-mortgage loan servicing rights | 489 | 517 | 489 | 481 | 609 | |||||||||||||||
Total tangible assets | $ | 2,253,914 | $ | 2,214,361 | $ | 2,238,446 | $ | 2,200,230 | $ | 2,151,849 | ||||||||||
Average shareholders' equity | $ | 160,479 | $ | 163,079 | $ | 161,867 | $ | 155,971 | $ | 160,994 | ||||||||||
Less: Average goodwill and other intangible assets | 1,084 | 1,085 | 1,085 | 1,086 | 1,087 | |||||||||||||||
Average disallowed non-mortgage loan servicing rights | 517 | 489 | 481 | 608 | 557 | |||||||||||||||
Total average tangible common equity | $ | 158,878 | $ | 161,505 | $ | 160,301 | $ | 154,277 | $ | 159,350 | ||||||||||
Net (loss) income | $ | (1,980 | ) | $ | (2,219 | ) | $ | 396 | $ | (5,522 | ) | $ | 2,504 | |||||||
Common shares outstanding | 9,365,979 | 9,453,247 | 9,442,796 | 9,611,876 | 9,630,735 | |||||||||||||||
GAAP Ratios: | ||||||||||||||||||||
Equity to total assets | 7.13 | % | 7.17 | % | 7.17 | % | 7.42 | % | 7.25 | % | ||||||||||
Return on average equity | -4.91 | % | -5.47 | % | 0.98 | % | -14.05 | % | 6.17 | % | ||||||||||
Book value per common share | $ | 17.17 | $ | 16.81 | $ | 17.00 | $ | 16.99 | $ | 16.20 | ||||||||||
Non-GAAP Ratios: | ||||||||||||||||||||
Tangible common equity to tangible assets(1) | 7.06 | % | 7.10 | % | 7.10 | % | 7.35 | % | 7.17 | % | ||||||||||
Return on average tangible common equity(1) | -4.96 | % | -5.53 | % | 0.99 | % | -14.20 | % | 6.23 | % | ||||||||||
Tangible book value per common share(1) | $ | 17.00 | $ | 16.64 | $ | 16.83 | $ | 16.83 | $ | 16.03 | ||||||||||
(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. | ||||||||||||||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY
ADDITIONAL INFORMATION
(Dollars in thousands) (Unaudited)
September 30, 2024 | September 30, 2023 | |||||||
(Dollars in thousands, except per share data) | ||||||||
Total shareholders' equity | $ | 160,789 | $ | 156,065 | ||||
Less: Goodwill and other intangible assets | 1,083 | 1,087 | ||||||
Disallowed non-mortgage loan servicing rights | 489 | 609 | ||||||
Total tangible common equity | $ | 159,217 | $ | 154,369 | ||||
Total assets | $ | 2,255,486 | $ | 2,153,545 | ||||
Less: Goodwill and other intangible assets | 1,083 | 1,087 | ||||||
Disallowed non-mortgage loan servicing rights | 489 | 609 | ||||||
Total tangible assets | $ | 2,253,914 | $ | 2,151,849 | ||||
Average shareholders' equity | $ | 161,803 | $ | 160,573 | ||||
Less: Average goodwill and other intangible assets | 1,085 | 1,088 | ||||||
Average disallowed non-mortgage loan servicing rights | 496 | 690 | ||||||
Total average tangible common equity | $ | 160,222 | $ | 158,795 | ||||
Net (loss) income | $ | (3,803 | ) | $ | 7,808 | |||
Common shares outstanding | 9,365,979 | 9,630,735 | ||||||
GAAP Ratios: | ||||||||
Equity to total assets | 7.13 | % | 7.25 | % | ||||
Return on average equity | -3.14 | % | 6.50 | % | ||||
Book value per common share | $ | 17.17 | $ | 16.20 | ||||
Non-GAAP Ratios: | ||||||||
Tangible common equity to tangible assets(1) | 7.06 | % | 7.17 | % | ||||
Return on average tangible common equity(1) | -3.17 | % | 6.57 | % | ||||
Tangible book value per common share(1) | $ | 17.00 | $ | 16.03 | ||||
(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. | ||||||||
Images accompanying this announcement are available at
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FAQ
What was First Northwest Bancorp's (FNWB) earnings per share in Q3 2024?
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