First Financial Northwest, Inc.
|
Washington
|
001-3365
|
26-0610707
|
||
State or other jurisdiction of
incorporation
|
Commission
File Number
|
(I.R.S. Employer
Identification No.)
|
||
201 Wells Avenue South, Renton, Washington
|
98057
|
|||
(Address of principal executive offices)
|
(Zip Code)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
|
|
(17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
|
|
(17 CFR 240.13e-4 (c))
|
FIRST FINANCIAL NORTHWEST, INC.
|
|
DATE: January 28, 2013 | By: /s/Kari Stenslie |
Kari Stenslie | |
Chief Financial Officer |
For more information, contact:
Joseph W. Kiley III, President and Chief Executive
Officer of First Savings Bank Northwest
Kari Stenslie, Chief Financial Officer
(425) 255-4400
|
·
|
Loan originations for the quarter increased 77.1% to $54.2 million compared to $30.6 million for the third quarter of 2012 and $9.4 million for the fourth quarter of 2011;
|
·
|
Nonperforming assets at December 31, 2012 decreased $2.7 million, or 6.3% to $40.1 million from September 30, 2012 and $9.6 million, or 19.4% from December 31, 2011;
|
·
|
OREO related expenses decreased $1.1 million to $507,000 for the quarter, compared to $1.6 million for the third quarter of 2012 and $955,000 for the comparable quarter in 2011;
|
·
|
Sales of OREO were $4.1 million during the quarter and generated net gains on sales of $180,000;
|
·
|
Additional expenses associated with the proxy contest litigation were $186,000, net of a refund receivable from our Directors and Officers’ insurance policy for the quarter, as compared to $264,000 for the third quarter of 2012. For the year ended December 31, 2012, net proxy contest and litigation expenses were $1.1 million with no comparable expenses during 2011;
|
·
|
The Company’s book value per share increased to $9.95 at December 31, 2012, from $9.84 at September 30, 2012 and $9.64 at December 31, 2011;
|
·
|
The Bank’s Tier 1 and total risk-based capital ratios at December 31, 2012 were 15.79% and 27.37%, respectively;
|
·
|
Classified assets decreased $9.5 million, or 15.5%, to $51.6 million at December 31, 2012 from $61.1 million at September 30, 2012 and $72.1 million at December 31, 2011. Classified assets include loans of lower quality where there is a distinct possibility that we will record a loss if the deficiencies are not corrected.
|
·
|
Delinquent loans, loans over 30 days past due, decreased $3.7 million to $20.9 million at December 31, 2012, from $24.6 million at September 30, 2012 and $26.7 million at December 31, 2011;
|
·
|
Our loan concentration levels in our five largest lending relationships continued to decline. The aggregate balance for these loans decreased $5.3 million to $85.6 million at December 31, 2012, from $90.9 million at September 30, 2012 and $96.9 million at December 31, 2011. All of these loans are performing;
|
·
|
Nonperforming loans decreased $824,000 to $22.8 million at December 31, 2012, from $23.6 million at September 30, 2012 and $23.7 million at December 31, 2011, continuing the trend of improvement within the loan portfolio;
|
·
|
Nonperforming loans as a percentage of total loans remained relatively unchanged at 3.4% at December 31, 2012, compared to September 30, 2012 and December 31, 2011, even as total loans decreased $6.7 million from the prior quarter and $49.1 million for the year, indicating an improvement in the performance of the loan portfolio;
|
Three Month
|
One Year
|
|||||||||||||||||
December 31,
|
September 30,
|
December 31,
|
Increase/
|
Increase/
|
||||||||||||||
2012
|
2012
|
2011
|
(Decrease)
|
(Decrease)
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Nonperforming loans:
|
||||||||||||||||||
One-to-four family residential
|
$
|
6,248
|
$
|
8,447
|
|
$
|
9,808
|
$
|
(2,199
|
) |
$
|
(3,560
|
) | |||||
Multifamily
|
4,711
|
4,711
|
949
|
-
|
|
3,762
|
||||||||||||
Commercial real estate
|
6,274
|
2,287
|
3,736
|
3,987
|
|
2,538
|
||||||||||||
Construction/land development
|
4,767
|
7,997
|
9,199
|
(3,230
|
) |
|
(4,432
|
) | ||||||||||
Consumer
|
759
|
141
|
-
|
618
|
|
759
|
||||||||||||
Total nonperforming loans
|
22,759
|
23,583
|
23,692
|
(824
|
) |
(933
|
) | |||||||||||
OREO
|
17,347
|
19,209
|
26,044
|
(1,862
|
) |
(8,697
|
) | |||||||||||
Total nonperforming assets (1)
|
$
|
40,106
|
$
|
42,792
|
$
|
49,736
|
$
|
(2,686
|
) |
$
|
(9,630
|
) | ||||||
Nonperforming assets as a percent
|
||||||||||||||||||
of total assets
|
4.25%
|
|
4.40% |
|
4.69% |
(1)
|
The difference between the $40.1 million of nonperforming assets at December 31, 2012, reported above, and the amount reported by certain analysts as our nonperforming assets is due to the analysts' inclusion of all TDRs as nonperforming loans, although 93.6% of our TDRs are performing in accordance with their restructured terms. The remaining 6.4% of TDRs that are nonperforming at December 31, 2012 are reported above as nonperforming loans.
|
||||||||||||||||
County
|
Number of
|
Percent of
|
|||||||||||||||||||
King
|
Pierce
|
Kitsap
|
All Other
|
Total OREO
|
Properties
|
Total OREO
|
|||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
OREO:
|
|||||||||||||||||||||
One-to-four family residential
|
$
|
2,349
|
$
|
1,183
|
$
|
410
|
$
|
375
|
$
|
4,317
|
21
|
24.9
|
%
|
||||||||
Commercial real estate (1)
|
1,569
|
6,993
|
1,136
|
724
|
10,422
|
21
|
60.1
|
||||||||||||||
Construction/land development
|
-
|
1,345
|
654
|
609
|
2,608
|
7
|
15.0
|
||||||||||||||
Total OREO
|
$
|
3,918
|
$
|
9,521
|
$
|
2,200
|
$
|
1,708
|
$
|
17,347
|
49
|
100.0
|
%
|
||||||||
(1)
|
Of the 21 properties classified as commercial real estate, nine are office/retail buildings, three are mixed-use buildings, five are developed lots and four are undeveloped lots.
|
||||||||||||||||||||
Three Month
|
One Year
|
|||||||||||||||||||
December 31,
|
September 30,
|
December 31,
|
Increase/
|
Increase/
|
||||||||||||||||
2012
|
2012
|
2011
|
(Decrease)
|
(Decrease)
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Nonperforming TDRs:
|
||||||||||||||||||||
One-to-four family residential
|
$ | 3,422 | $ | 3,907 | $ | 3,994 | $ | (485 | ) | $ | (572 | ) | ||||||||
Multifamily
|
1,058 | 1,058 | - | - | 1,058 | |||||||||||||||
Commercial real estate
|
- | - | 902 | - | (902 | ) | ||||||||||||||
Construction/land development
|
- | - | 183 | - | (183 | ) | ||||||||||||||
Consumer
|
48 | 48 | - | - | 48 | |||||||||||||||
Total nonperforming TDRs
|
4,528 | 5,013 | 5,079 | (485 | ) | (551 | ) | |||||||||||||
Performing TDRs:
|
||||||||||||||||||||
One-to-four family residential
|
52,644 | 52,467 | 52,768 | 177 | (124 | ) | ||||||||||||||
Multifamily
|
1,239 | 1,243 | 2,504 | (4 | ) | (1,265 | ) | |||||||||||||
Commercial real estate
|
11,965 | 11,058 | 10,883 | 907 | 1,082 | |||||||||||||||
Consumer
|
- | - | 70 | - | (70 | ) | ||||||||||||||
Total performing TDRs
|
65,848 | 64,768 | 66,225 | 1,080 | (377 | ) | ||||||||||||||
Total TDRs
|
$ | 70,376 | $ | 69,781 | $ | 71,304 | $ | 595 | $ | (928 | ) |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
|||||||||||
Consolidated Balance Sheets
|
|||||||||||
(Dollars in thousands, except share data)
|
|||||||||||
(Unaudited)
|
December 31,
|
||||||||
Assets
|
2012
|
2011
|
||||||
Cash on hand and in banks
|
$ | 4,289 | $ | 4,620 | ||||
Interest-bearing deposits
|
83,452 | 160,141 | ||||||
Investments available-for-sale, at fair value
|
152,262 | 129,002 | ||||||
Loans receivable, net of allowance of $12,542 and $16,559
|
650,468 | 703,288 | ||||||
Premises and equipment, net
|
18,073 | 18,922 | ||||||
Federal Home Loan Bank stock, at cost
|
7,281 | 7,413 | ||||||
Accrued interest receivable
|
3,484 | 3,856 | ||||||
Federal income tax receivable
|
60 | 1,060 | ||||||
Deferred tax assets
|
1,000 | - | ||||||
OREO
|
17,347 | 26,044 | ||||||
Prepaid expenses and other assets
|
4,939 | 5,044 | ||||||
Total assets
|
$ | 942,655 | $ | 1,059,390 | ||||
Liabilities and Stockholders' Equity
|
||||||||
Interest-bearing deposits
|
$ | 659,643 | $ | 782,652 | ||||
Noninterest-bearing deposits
|
6,154 | 6,013 | ||||||
Advances from the Federal Home Loan Bank
|
83,066 | 83,066 | ||||||
Advance payments from borrowers for taxes and insurance
|
2,186 | 2,093 | ||||||
Accrued interest payable
|
179 | 184 | ||||||
Other liabilities
|
4,310 | 4,062 | ||||||
Total liabilities
|
755,538 | 878,070 | ||||||
Commitments and contingencies
|
||||||||
Stockholders' Equity
|
||||||||
Preferred stock, $0.01 par value; authorized 10,000,000 shares,
|
||||||||
no shares issued or outstanding
|
- | - | ||||||
Common stock, $0.01 par value; authorized 90,000,000 shares;
|
||||||||
issued and outstanding 18,805,168 shares at December 31,
|
||||||||
2012 and 2011
|
188 | 188 | ||||||
Additional paid-in capital
|
190,534 | 188,816 | ||||||
Retained earnings, substantially restricted
|
6,650 | 3,937 | ||||||
Accumulated other comprehensive income, net of tax
|
748 | 511 | ||||||
Unearned Employee Stock Ownership Plan ("ESOP") shares
|
(11,003 | ) | (12,132 | ) | ||||
Total stockholders' equity
|
187,117 | 181,320 | ||||||
Total liabilities and stockholders' equity
|
$ | 942,655 | $ | 1,059,390 |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
||||||||||||||||||||
Consolidated Statement of Income
|
||||||||||||||||||||
(Dollars in thousands, except share data)
|
||||||||||||||||||||
(Unaudited)
|
Quarter Ended
|
Three Month |
One Year
|
||||||||||||||||||
December 31,
|
September 30,
|
December 31,
|
Increase /
|
Increase /
|
||||||||||||||||
2012
|
2012
|
2011
|
(Decrease)
|
(Decrease)
|
||||||||||||||||
Interest income
|
||||||||||||||||||||
Loans, including fees
|
$ | 9,143 | $ | 9,539 | $ | 10,892 | (4.2 | ) % | (16.1 | ) % | ||||||||||
Investments available-for-sale
|
543 | 507 | 647 | 7.1 | (16.1 | ) | ||||||||||||||
Interest-bearing deposits
|
62 | 111 | 107 | (44.1 | ) | (42.1 | ) | |||||||||||||
Total interest income
|
$ | 9,748 | $ | 10,157 | $ | 11,646 | (4.0 | ) | (16.3 | ) | ||||||||||
Interest expense
|
||||||||||||||||||||
Deposits
|
2,194 | 2,429 | 3,501 | (9.7 | ) | (37.3 | ) | |||||||||||||
Federal Home Loan Bank advances
|
516 | 517 | 522 | (0.2 | ) | (1.1 | ) | |||||||||||||
Total interest expense
|
$ | 2,710 | $ | 2,946 | $ | 4,023 | (8.0 | ) | (32.6 | ) | ||||||||||
Net interest income
|
7,038 | 7,211 | 7,623 | (2.4 | ) | (7.7 | ) | |||||||||||||
Provision for loan losses
|
- | 700 | 600 | (100.0 | ) | (100.0 | ) | |||||||||||||
Net interest income after provision for loan losses
|
$ | 7,038 | $ | 6,511 | $ | 7,023 | 8.1 | 0.2 | ||||||||||||
Noninterest income
|
||||||||||||||||||||
Net gain on sale of investments
|
13 | - | 485 | 100.0 | (97.3 | ) | ||||||||||||||
Other
|
105 | 107 | 70 | (1.9 | ) | 50.0 | ||||||||||||||
Total noninterest income
|
$ | 118 | $ | 107 | $ | 555 | 10.3 | (78.7 | ) | |||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and employee benefits
|
3,268 | 3,680 | 3,212 | (11.2 | ) | 1.7 | ||||||||||||||
Occupancy and equipment
|
361 | 391 | 388 | (7.7 | ) | (7.0 | ) | |||||||||||||
Professional fees
|
449 | 460 | 535 | (2.4 | ) | (16.1 | ) | |||||||||||||
Data processing
|
161 | 174 | 188 | (7.5 | ) | (14.4 | ) | |||||||||||||
Gain on sale of OREO property, net
|
(180 | ) | (78 | ) | (134 | ) | 130.8 | 34.3 | ||||||||||||
OREO market value adjustments
|
344 | 1,157 | 492 | (70.3 | ) | (30.1 | ) | |||||||||||||
OREO related expenses, net
|
343 | 486 | 597 | (29.4 | ) | (42.5 | ) | |||||||||||||
Regulatory assessments
|
295 | 298 | 537 | (1.0 | ) | (45.1 | ) | |||||||||||||
Insurance and bond premiums
|
101 | 100 | 247 | 1.0 | (59.1 | ) | ||||||||||||||
Proxy contest and related litigation
|
186 | 264 | - | (29.5 | ) | 100.0 | ||||||||||||||
Marketing
|
46 | 68 | 51 | (32.4 | ) | (9.8 | ) | |||||||||||||
Other general and administrative
|
271 | 457 | 538 | (40.7 | ) | (49.6 | ) | |||||||||||||
Total noninterest expense
|
$ | 5,645 | $ | 7,457 | $ | 6,651 | (24.3 | ) | (15.1 | ) | ||||||||||
Income (loss) before federal income tax
|
||||||||||||||||||||
benefit
|
1,511 | (839 | ) | 927 | 280.1 | 63.0 | ||||||||||||||
Federal income tax benefit
|
- | (48 | ) | - | 100.0 | - | ||||||||||||||
Net income (loss)
|
$ | 1,511 | $ | (791 | ) | $ | 927 | 291.0 | 63.0 | |||||||||||
Basic earnings (loss) per share
|
$ | 0.09 | $ | (0.04 | ) | $ | 0.05 | 325.0 | 80.0 | |||||||||||
Diluted earnings (loss) per share
|
$ | 0.09 | $ | (0.04 | ) | $ | 0.05 | 325.0 | 80.0 |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
||||||||||||
Consolidated Income Statements
|
||||||||||||
(Dollars in thousands, except share data)
|
||||||||||||
(Unaudited)
|
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Interest income
|
||||||||||||
Loans, including fees
|
$ | 38,956 | $ | 46,608 | $ | 55,783 | ||||||
Investments available-for-sale
|
2,143 | 4,040 | 4,485 | |||||||||
Interest-bearing deposits with banks
|
367 | 404 | 276 | |||||||||
Total interest income
|
$ | 41,466 | $ | 51,052 | $ | 60,544 | ||||||
Interest expense
|
||||||||||||
Deposits
|
10,191 | 16,215 | 23,370 | |||||||||
Federal Home Loan Bank advances
|
2,055 | 2,270 | 4,189 | |||||||||
Total interest expense
|
$ | 12,246 | $ | 18,485 | $ | 27,559 | ||||||
Net interest income
|
29,220 | 32,567 | 32,985 | |||||||||
Provision for loan losses
|
3,050 | 4,700 | 53,100 | |||||||||
Net interest income (loss) after provision for loan losses
|
$ | 26,170 | $ | 27,867 | $ | (20,115 | ) | |||||
Noninterest income
|
||||||||||||
Net gain on sale of investments
|
301 | 2,226 | 843 | |||||||||
Other
|
535 | 307 | 198 | |||||||||
Total noninterest income
|
$ | 836 | $ | 2,533 | $ | 1,041 | ||||||
Noninterest expense
|
||||||||||||
Salaries and employee benefits
|
13,826 | 13,259 | 12,347 | |||||||||
Occupancy and equipment
|
1,552 | 1,555 | 1,657 | |||||||||
Professional fees
|
1,850 | 1,966 | 2,148 | |||||||||
Data processing
|
701 | 761 | 723 | |||||||||
Gain on sale of OREO property, net
|
(607 | ) | (1,561 | ) | (185 | ) | ||||||
OREO market value adjustments
|
2,046 | 1,924 | 5,624 | |||||||||
OREO related expenses, net
|
1,764 | 2,973 | 3,419 | |||||||||
Regulatory assessments
|
1,004 | 2,437 | 2,837 | |||||||||
Insurance and bond premiums
|
401 | 990 | 597 | |||||||||
Proxy contest and related litigation
|
1,054 | - | - | |||||||||
Marketing
|
227 | 205 | 233 | |||||||||
Other general and administrative
|
1,474 | 1,649 | 1,663 | |||||||||
Total noninterest expense
|
$ | 25,292 | $ | 26,158 | $ | 31,063 | ||||||
Income (loss) before provision (benefit) for federal
|
||||||||||||
income tax
|
1,714 | 4,242 | (50,137 | ) | ||||||||
Federal income tax provision (benefit)
|
(999 | ) | - | 3,999 | ||||||||
Net income (loss)
|
$ | 2,713 | $ | 4,242 | $ | (54,136 | ) | |||||
Basic earnings (loss) per share
|
$ | 0.15 | $ | 0.24 | $ | (3.11 | ) | |||||
Diluted earnings (loss) per share
|
$ | 0.15 | $ | 0.24 | $ | (3.11 | ) |
December 31, | |||||||||||||
2012
|
2011
|
||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||
(Dollars in thousands)
|
|||||||||||||
One-to-four family residential: (1)
|
|||||||||||||
Permanent
|
$
|
306,851
|
45.5
|
%
|
$
|
335,412
|
46.4
|
%
|
|||||
Construction
|
177
|
0.1
|
-
|
-
|
|||||||||
307,028
|
45.6
|
335,412
|
46.4
|
||||||||||
Multifamily:
|
|||||||||||||
Permanent
|
105,936
|
15.7
|
110,148
|
15.2
|
|||||||||
Construction
|
5,585
|
0.8
|
3,526
|
0.5
|
|||||||||
111,521
|
16.5
|
113,674
|
15.7
|
||||||||||
Commercial real estate:
|
|||||||||||||
|
Permanent
|
207,436
|
30.8
|
218,032
|
30.2
|
||||||||
Construction
|
12,500
|
1.8
|
12,500
|
1.7
|
|||||||||
Land
|
1,942
|
0.3
|
1,811
|
0.2
|
|||||||||
221,878
|
32.9
|
232,343
|
32.1
|
||||||||||
Construction/land development: (2)
|
|||||||||||||
One-to-four family residential
|
608
|
0.1
|
6,194
|
0.9
|
|||||||||
Multifamily
|
8,375
|
1.2
|
855
|
0.1
|
|||||||||
Commercial
|
-
|
-
|
1,104
|
0.2
|
|||||||||
Land development
|
10,435
|
1.6
|
16,990
|
2.3
|
|||||||||
19,418
|
2.9
|
25,143
|
3.5
|
||||||||||
Business
|
2,968
|
0.4
|
3,909
|
0.6
|
|||||||||
Consumer
|
11,110
|
1.7
|
12,499
|
1.7
|
|||||||||
Total loans
|
673,923
|
100.0
|
%
|
722,980
|
100.0
|
%
|
|||||||
Less:
|
|||||||||||||
Loans in process
|
8,856
|
1,372
|
|||||||||||
Deferred loan fees, net
|
2,057
|
1,761
|
|||||||||||
ALLL
|
12,542
|
16,559
|
|||||||||||
Loans receivable, net
|
$
|
650,468
|
$
|
703,288
|
(1)
|
Includes $139.8 million and $147.4 million of non-owner occupied loans at December 31, 2012 and December 31, 2011, respectively.
|
||||||||||||
(2) | Excludes construction loans that will convert to permanent loans. We consider these loans to be "rollovers" in that one loan is originated for both the construction loan and permanent financing. These loans are classified according to the underlying collateral. At December 31, 2012, we had $12.5 million, or 5.6% of our total commercial real estate portfolio, $5.6 million, or 5.0% of our total multifamily loans and $177,000, or 0.1% of our total one-to-four family loan portfolio in these "rollover" type of loans. At December 31, 2011, we had $12.5 million, or 5.4% of our total commercial real estate portfolio and $3.5 million, or 3.1% of our total multifamily loan portfolio in these rollover type of loans. At December 31, 2012 and 2011, $1.9 million and $1.8 million, respectively, of commercial real estate loans were not included in the construction/land development category because we classify raw land or buildable lots where we do not intend to finance the construction as commercial real estate land loans. |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||
Key Financial Ratios
|
||||||||||||||||||||||
(Unaudited)
|
At or For the Quarter Ended
|
||||||||||||||||||||
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
||||||||||||||||
2012
|
2012
|
2012
|
2012
|
2011
|
||||||||||||||||
(Dollars in thousands, except share data)
|
||||||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return (loss) on assets
|
0.63
|
%
|
(0.32)
|
%
|
0.54
|
%
|
0.24
|
%
|
0.34
|
%
|
||||||||||
Return (loss) on equity
|
3.25
|
(1.70)
|
2.97
|
1.36
|
2.05
|
|||||||||||||||
Equity-to-assets
|
19.85
|
19.01
|
18.44
|
17.61
|
17.12
|
|||||||||||||||
Interest rate spread
|
2.86
|
2.84
|
2.80
|
2.88
|
2.72
|
|||||||||||||||
Net interest margin
|
3.09
|
3.08
|
3.03
|
3.11
|
2.96
|
|||||||||||||||
Average interest-earning assets to average
|
||||||||||||||||||||
interest-bearing liabilities
|
119.82
|
118.96
|
117.64
|
116.28
|
115.03
|
|||||||||||||||
Efficiency ratio
|
78.88
|
101.90
|
86.54
|
70.34
|
81.33
|
|||||||||||||||
Noninterest expense as a percent of average total
|
||||||||||||||||||||
assets
|
2.35
|
3.01
|
2.60
|
2.14
|
2.44
|
|||||||||||||||
Book value per common share
|
$
|
9.95
|
$
|
9.84
|
$
|
9.79
|
$
|
9.71
|
$
|
9.64
|
||||||||||
Capital Ratios (1):
|
||||||||||||||||||||
Tier 1 leverage
|
15.79
|
%
|
15.16
|
%
|
14.85
|
%
|
14.15
|
%
|
13.54
|
%
|
||||||||||
Tier 1 risk-based
|
26.11
|
26.04
|
25.98
|
24.36
|
23.49
|
|||||||||||||||
Total risk-based
|
27.37
|
27.31
|
27.24
|
25.62
|
24.76
|
|||||||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Nonperforming loans as a percent of total loans
|
3.42
|
%
|
3.54
|
%
|
3.40
|
%
|
3.78
|
%
|
3.28
|
%
|
||||||||||
Nonperforming assets as a percent of total assets
|
4.25
|
4.40
|
4.49
|
4.71
|
4.69
|
|||||||||||||||
ALLL as a percent of total loans, net of
|
||||||||||||||||||||
undisbursed funds
|
1.89
|
2.13
|
2.17
|
2.13
|
2.29
|
|||||||||||||||
ALLL as a percent of nonperforming loans, net of
|
||||||||||||||||||||
undisbursed funds
|
55.11
|
60.08
|
63.86
|
56.22
|
69.89
|
|||||||||||||||
Net charge-offs to average loans receivable, net
|
0.25
|
0.15
|
0.16
|
0.49
|
0.09
|
|||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||
ALLL, beginning of the quarter
|
$
|
14,168
|
$
|
14,450
|
$
|
14,832
|
$
|
16,559
|
$
|
16,634
|
||||||||||
Provision
|
-
|
700
|
650
|
1,700
|
600
|
|||||||||||||||
Charge-offs
|
(2,202
|
) |
(2,341
|
) |
(1,349
|
) |
(3,699
|
) |
(688
|
) | ||||||||||
Recoveries
|
576
|
1,359
|
317
|
272
|
13
|
|||||||||||||||
ALLL, end of the quarter
|
$
|
12,542
|
$
|
14,168
|
$
|
14,450
|
$
|
14,832
|
$
|
16,559
|
||||||||||
Nonperforming Assets (2):
|
||||||||||||||||||||
Nonperforming loans (3):
|
||||||||||||||||||||
Nonaccrual loans
|
$
|
18,231
|
$
|
18,570
|
$
|
17,853
|
$
|
22,739
|
$
|
18,613
|
||||||||||
Nonaccrual troubled debt restructured loans
|
4,528
|
5,013
|
4,773
|
3,644
|
5,079
|
|||||||||||||||
Total nonperforming loans
|
22,759
|
23,583
|
22,626
|
26,383
|
23,692
|
|||||||||||||||
OREO
|
17,347
|
19,209
|
22,206
|
22,448
|
26,044
|
|||||||||||||||
Total nonperforming assets
|
$
|
40,106
|
$
|
42,792
|
$
|
44,832
|
$
|
48,831
|
$
|
49,736
|
||||||||||
Performing troubled debt restructured loans
|
$
|
65,848
|
$
|
64,768
|
$
|
62,762
|
$
|
65,556
|
$
|
66,225
|
_______ | ||||||||||||||||||||
(1) Capital ratios are for First Savings Bank Northwest only.
|
||||||||||||||||||||
(2) Loans are reported net of undisbursed funds.
|
||||||||||||||||||||
(3) There were no loans 90 days or more past due and still accruing interest.
|
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||
Key Financial Ratios
|
||||||||||||||||||||||
(Unaudited)
|
At or For the Year Ended
|
||||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
(Dollars in thousands, except share data)
|
||||||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return (loss) on assets
|
0.27
|
%
|
0.37
|
%
|
(4.18)
|
%
|
(3.14)
|
%
|
0.39
|
%
|
||||||||||
Return (loss) on equity
|
1.47
|
2.36
|
(26.59)
|
(15.18)
|
1.50
|
|||||||||||||||
Dividend payout ratio
|
-
|
-
|
(2.73)
|
(15.60)
|
109.09
|
|||||||||||||||
Equity-to-assets
|
19.85
|
17.12
|
14.62
|
17.37
|
23.31
|
|||||||||||||||
Interest rate spread
|
2.85
|
2.78
|
2.40
|
1.86
|
1.84
|
|||||||||||||||
Net interest margin
|
3.08
|
3.01
|
2.70
|
2.49
|
2.81
|
|||||||||||||||
Average interest-earning assets to average
|
||||||||||||||||||||
interest-bearing liabilities
|
118.12
|
113.33
|
113.35
|
123.31
|
131.20
|
|||||||||||||||
Efficiency ratio
|
84.15
|
74.52
|
91.29
|
105.78
|
44.75
|
|||||||||||||||
Noninterest expense as a percent of average total
|
||||||||||||||||||||
assets
|
2.52
|
2.28
|
2.40
|
2.71
|
1.22
|
|||||||||||||||
Book value per common share
|
$
|
9.95
|
$
|
9.64
|
$
|
9.28
|
$
|
12.14
|
$
|
13.62
|
||||||||||
Capital Ratios (1):
|
||||||||||||||||||||
Tier 1 leverage
|
15.79
|
%
|
13.54
|
%
|
11.73
|
%
|
12.46
|
%
|
15.61
|
%
|
||||||||||
Tier 1 risk-based
|
26.11
|
23.49
|
18.38
|
19.20
|
23.04
|
|||||||||||||||
Total risk-based
|
27.37
|
24.76
|
19.65
|
20.49
|
24.30
|
|||||||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Nonperforming loans as a percent of total loans
|
3.42
|
%
|
3.28
|
%
|
7.14
|
%
|
11.23
|
%
|
5.56
|
%
|
||||||||||
Nonperforming assets as a percent of total assets
|
4.25
|
4.69
|
7.79
|
10.08
|
4.71
|
|||||||||||||||
ALLL as a percent of total loans, net of
|
||||||||||||||||||||
undisbursed funds
|
1.89
|
2.29
|
2.56
|
3.07
|
1.61
|
|||||||||||||||
ALLL as a percent of nonperforming loans, net of
|
||||||||||||||||||||
undisbursed funds
|
55.11
|
69.89
|
35.80
|
27.37
|
28.96
|
|||||||||||||||
Net charge-offs to average loans receivable, net
|
1.07
|
1.39
|
6.55
|
3.38
|
0.04
|
|||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||
ALLL, beginning of the year
|
$
|
16,559
|
$
|
22,534
|
$
|
33,039
|
$
|
16,982
|
$
|
7,971
|
||||||||||
Provision
|
3,050
|
4,700
|
53,100
|
51,300
|
9,443
|
|||||||||||||||
Charge-offs
|
(9,591)
|
(11,025)
|
(65,476)
|
(35,302)
|
(432)
|
|||||||||||||||
Recoveries
|
2,524
|
350
|
1,871
|
59
|
-
|
|||||||||||||||
ALLL, end of the year
|
$
|
12,542
|
$
|
16,559
|
$
|
22,534
|
$
|
33,039
|
$
|
16,982
|
||||||||||
Nonperforming Assets (2):
|
||||||||||||||||||||
Nonperforming loans (3):
|
||||||||||||||||||||
90 days or more past due and still accruing
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,104
|
||||||||||
Nonaccrual loans
|
18,231
|
18,613
|
46,637
|
94,682
|
35,720
|
|||||||||||||||
Nonaccrual troubled debt restructured loans
|
4,528
|
5,079
|
16,299
|
26,021
|
20,818
|
|||||||||||||||
Total nonperforming loans
|
22,759
|
23,692
|
62,936
|
120,703
|
58,642
|
|||||||||||||||
OREO
|
17,347
|
26,044
|
30,102
|
11,835
|
-
|
|||||||||||||||
Total nonperforming assets
|
$
|
40,106
|
$
|
49,736
|
$
|
93,038
|
$
|
132,538
|
$
|
58,642
|
||||||||||
Performing troubled debt restructured loans
|
$
|
65,848
|
$
|
66,225
|
$
|
58,375
|
$
|
35,458
|
$
|
2,226
|
(1) Capital ratios are for First Savings Bank Northwest only.
|
||||||||||||||||||||
(2) Loans are reported net of undisbursed funds.
|
||||||||||||||||||||
(3) There were no loans 90 days or more past due and still accruing interest.
|