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, 2015 | By: Richard P. Jacobson |
Richard P. Jacobson
Chief Financial Officer
|
For more information, contact:
Joseph W. Kiley III, President and Chief Executive Officer
Rich Jacobson, Executive Vice President and Chief Financial Officer
(425) 255-4400
|
·
|
Share repurchases totaled 327,112 shares during the quarter, at an average price of $11.40 per share, bringing the total shares repurchased in 2014 to 1,594,033 shares at an average price of $10.98 per share. The Company announced that a 10b5-1 plan will be utilized to repurchase shares through April 22, 2015. At December 31, 2014, there were 1,219,488 shares remaining to be repurchased under the current Share Repurchase Plan.
|
·
|
The Company’s book value per share at December 31, 2014, increased to $11.96 from $11.76 at September 30, 2014, and $11.25 at December 31, 2013.
|
·
|
The Bank paid a $70 million dividend to the Company in 2014, as detailed in our press release dated November 17, 2014. These funds are now available for a variety of general corporate purposes consistent with our business plan, including share repurchases, the payment of dividends to shareholders, if any, supporting ongoing operating expenses of the Company, and for other opportunities that may arise.
|
·
|
Primarily as a result of the $70 million dividend paid by the Bank to the Company, the Bank’s Tier 1 and total risk-based capital ratios at December 31, 2014, declined to 11.79% and 19.56%, respectively, compared to 18.60% and 28.44%, at December 31, 2013.
|
·
|
The Bank received payment in full on a $5.0 million loan that was internally classified as “special mention”, reducing the general reserve requirement in the Bank’s ALLL calculations.
|
·
|
After careful review and ongoing monitoring, a loan with a balance of $12.3 million was upgraded during the quarter as a result of an improvement in the borrower’s risk profile, and this upgrade significantly reduced the amounts allocated for future estimated losses relating to the general reserve pool that included this loan.
|
·
|
Net loans receivable balances (before ALLL) declined by $21.4 million during the quarter, reducing the amounts required for general reserves for future estimated loan losses.
|
·
|
Delinquent loans (loans over 30 days past due) remained low at $4.4 million at December 31, 2014, compared to $2.6 million at September 30, 2014, and $4.3 million at December 31, 2013.
|
·
|
Nonperforming loans remained low at $1.3 million at December 31, 2014, from $1.6 million at September 30, 2014, and $4.0 million at December 31, 2013, reflecting continuing improvement in the quality of our loan portfolio.
|
·
|
Nonperforming loans as a percentage of total loans improved to 0.20% at December 31, 2014, compared to 0.23% at September 30, 2014, and 0.59% at December 31, 2013.
|
December 31,
|
September 30,
|
December 31,
|
Three Month
|
One Year
|
||||||||||||||||
2014
|
2014
|
2013
|
Change
|
Change
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Nonperforming loans:
|
||||||||||||||||||||
One-to-four family residential
|
$ | 830 | $ | 837 | $ | 2,297 | $ | (7 | ) | $ | (1,467 | ) | ||||||||
Multifamily
|
- | - | 233 | - | (233 | ) | ||||||||||||||
Commercial real estate
|
434 | 658 | 1,198 | (224 | ) | (764 | ) | |||||||||||||
Construction/land development
|
- | - | 223 | - | (223 | ) | ||||||||||||||
Consumer
|
75 | 77 | 44 | (2 | ) | 31 | ||||||||||||||
Total nonperforming loans
|
$ | 1,339 | $ | 1,572 | $ | 3,995 | $ | (233 | ) | $ | (2,656 | ) | ||||||||
Other Real Estate Owned (“OREO”)
|
9,283 | 9,819 | 11,465 | (536 | ) | (2,182 | ) | |||||||||||||
Total nonperforming assets (1)
|
$ | 10,622 | $ | 11,391 | $ | 15,460 | $ | (769 | ) | $ | (4,838 | ) | ||||||||
Nonperforming assets as a
|
||||||||||||||||||||
percent of total assets
|
1.13 | % | 1.24 | % | 1.68 | % | ||||||||||||||
(1) The difference between the $10.6 million of nonperforming assets at December 31, 2014, reported above, and the totals reported by other industry sources as our nonperforming assets is due to their inclusion of all Troubled Debt Restructured Loans (“TDRs”) as nonperforming loans, although 100% of our TDRs are performing in accordance with their restructured terms at December 31, 2014.
|
County
|
||||||||||||||||||||||||||||
King
|
Pierce
|
Kitsap
|
All Other
|
Total
OREO
|
Number of
Properties
|
Percent of
Total
OREO
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
OREO:
|
||||||||||||||||||||||||||||
One-to-four family
residential
|
$ | 154 | $ | 146 | $ | - | $ | - | $ | 300 | 2 | 3.2 | % | |||||||||||||||
Commercial real estate (1)
|
- | 6,842 | 773 | 877 | 8,492 | 11 | 91.5 | % | ||||||||||||||||||||
Construction/land
development
|
- | 200 | - | 291 | 491 | 2 | 5.3 | % | ||||||||||||||||||||
Total OREO
|
$ | 154 | $ | 7,188 | $ | 773 | $ | 1,168 | $ | 9,283 | 15 | 100.0 | % | |||||||||||||||
(1) Of the 11 properties classified as commercial real estate, eight are office/retail buildings and three are undeveloped lots.
|
December 31,
2014
|
September 30,
2014
|
December 31,
2013
|
Three Month
Change
|
One Year
Change
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Nonperforming TDRs:
|
||||||||||||||||||||
One-to-four family residential
|
$ | - | $ | - | $ | 924 | $ | - | $ | (924 | ) | |||||||||
Consumer
|
- | - | 44 | - | (44 | ) | ||||||||||||||
Total nonperforming TDRs
|
- | - | 968 | - | (968 | ) | ||||||||||||||
Performing TDRs:
|
||||||||||||||||||||
One-to-four family residential
|
42,908 | 44,429 | 45,851 | (1,521 | ) | (2,943 | ) | |||||||||||||
Multifamily
|
2,172 | 2,182 | 2,208 | (10 | ) | (36 | ) | |||||||||||||
Commercial real estate
|
9,118 | 9,148 | 12,111 | (30 | ) | (2,993 | ) | |||||||||||||
Consumer
|
43 | 43 | - | - | 43 | |||||||||||||||
Total performing TDRs
|
54,241 | 55,802 | 60,170 | (1,561 | ) | (5,929 | ) | |||||||||||||
Total TDRs
|
$ | 54,241 | $ | 55,802 | $ | 61,138 | $ | (1,561 | ) | $ | (6,897 | ) | ||||||||
% TDRs classified as performing
|
100.0 | % | 100.0 | % | 98.4 | % |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
||||||||||||
Consolidated Balance Sheets
|
||||||||||||
(Dollars in thousands, except share data)
|
||||||||||||
Assets
|
December 31, 2014
|
December 31, 2013
|
One Year Change
|
|||||||||
Cash on hand and in banks
|
$ | 5,920 | $ | 6,074 | (2.5 | )% | ||||||
Interest-earning deposits
|
98,129 | 49,501 | 98.2 | |||||||||
Investments available-for-sale, at fair value
|
120,374 | 144,364 | (16.6 | ) | ||||||||
Loans receivable, net of allowance of $10,491and 12,994 ,respectively
|
663,938 | 663,153 | 0.1 | |||||||||
Premises and equipment, net
|
16,734 | 17,291 | (3.2 | ) | ||||||||
Federal Home Loan Bank ("FHLB") stock, at cost
|
6,745 | 7,017 | (3.9 | ) | ||||||||
Accrued interest receivable
|
3,265 | 3,698 | (11.7 | ) | ||||||||
Deferred tax assets, net
|
8,338 | 14,835 | (43.8 | ) | ||||||||
Other real estate owned ("OREO")
|
9,283 | 11,465 | (19.0 | ) | ||||||||
Prepaid expenses and other assets
|
4,271 | 3,581 | 19.3 | |||||||||
Total assets
|
$ | 936,997 | $ | 920,979 | 1.7 | |||||||
Liabilities and Stockholders' Equity
|
||||||||||||
Interest-bearing deposits
|
$ | 599,773 | $ | 601,446 | (0.3 | ) | ||||||
Noninterest-bearing deposits
|
14,354 | 10,619 | 35.2 | |||||||||
Advances from the FHLB
|
135,500 | 119,000 | 13.9 | |||||||||
Advance payments from borrowers for taxes and insurance
|
1,707 | 1,846 | (7.5 | ) | ||||||||
Accrued interest payable
|
142 | 88 | 61.4 | |||||||||
Other liabilities
|
4,109 | 3,625 | 13.4 | |||||||||
Total liabilities
|
755,585 | 736,624 | 2.6 | |||||||||
Commitments and contingencies
|
||||||||||||
Stockholders' Equity
|
||||||||||||
Preferred stock, $0.01 par value; authorized
10,000,000 shares; no shares issued or outstanding
|
- | - | n/a | |||||||||
Common stock, $0.01 par value;
authorized 90,000,000 shares;
issued and outstanding 15,167,381
shares at December 31, 2014
and 16,392,139 shares at December 31, 2013
|
151 | 164 | (7.9 | ) | ||||||||
Additional paid-in capital
|
153,395 | 166,866 | (8.1 | ) | ||||||||
Retained earnings, substantially restricted
|
36,969 | 29,220 | 26.5 | |||||||||
Accumulated other comprehensive loss, net of tax
|
(357 | ) | (2,020 | ) | (82.3 | ) | ||||||
Unearned Employee Stock Ownership Plan ("ESOP") shares
|
(8,746 | ) | (9,875 | ) | (11.4 | ) | ||||||
Total stockholders' equity
|
181,412 | 184,355 | (1.6 | )% | ||||||||
Total liabilities and stockholders' equity
|
$ | 936,997 | $ | 920,979 | 1.7 | % |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
||||||||||||||||||||
Consolidated Income Statements
|
||||||||||||||||||||
(Dollars in thousands, except share data)
(Unaudited)
|
||||||||||||||||||||
Quarter Ended
|
||||||||||||||||||||
December 31, 2014
|
September 30, 2014
|
December 31, 2013
|
Three Month Change
|
One Year Change
|
||||||||||||||||
Interest income
|
||||||||||||||||||||
Loans, including fees
|
$ | 9,010 | $ | 9,157 | $ | 9,105 | (1.6 | )% | (1.0 | )% | ||||||||||
Investments available-for-sale
|
544 | 554 | 641 | (1.8 | ) | (15.1 | ) | |||||||||||||
Interest-earning deposits
|
50 | 23 | 21 | 117.4 | 138.1 | |||||||||||||||
Dividends on FHLB Stock
|
2 | 2 | 1 | - | 100.0 | |||||||||||||||
Total interest income
|
$ | 9,606 | $ | 9,736 | $ | 9,768 | (1.3 | ) | (1.7 | ) | ||||||||||
Interest expense
|
||||||||||||||||||||
Deposits
|
1,285 | 1,193 | 1,483 | 7.7 | (13.4 | ) | ||||||||||||||
FHLB advances
|
324 | 324 | 211 | - | 53.6 | |||||||||||||||
Total interest expense
|
$ | 1,609 | $ | 1,517 | $ | 1,694 | 6.1 | (5.0 | ) | |||||||||||
Net interest income
|
7,997 | 8,219 | 8,074 | (2.7 | ) | (1.0 | ) | |||||||||||||
Recapture of provision for loan losses
|
(1,200 | ) | (300 | ) | (200 | ) | 300.0 | 500.0 | ||||||||||||
Net interest income after recapture of provision for
loan losses
|
$ | 9,197 | $ | 8,519 | $ | 8,274 | 8.0 | 11.2 | ||||||||||||
Noninterest income
|
||||||||||||||||||||
Other
|
156 | 186 | 512 | (16.1 | ) | (69.5 | ) | |||||||||||||
Total noninterest income
|
$ | 156 | $ | 186 | $ | 512 | (16.1 | ) | (69.5 | ) | ||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and employee benefits
|
3,294 | 2,947 | 2,819 | 11.8 | 16.8 | |||||||||||||||
Occupancy and equipment
|
345 | 324 | 332 | 6.5 | 3.9 | |||||||||||||||
Professional fees
|
332 | 457 | 424 | (27.4 | ) | (21.7 | ) | |||||||||||||
Data processing
|
196 | 153 | 164 | 28.1 | 19.5 | |||||||||||||||
Gain on sale of OREO property, net
|
(6 | ) | (15 | ) | (62 | ) | (60.0 | ) | (90.3 | ) | ||||||||||
OREO market value adjustments
|
45 | 60 | 47 | (25.0 | ) | (4.3 | ) | |||||||||||||
OREO related expenses, net
|
2 | 49 | 93 | (95.9 | ) | (97.8 | ) | |||||||||||||
Regulatory assessments
|
112 | 102 | 144 | 9.8 | (22.2 | ) | ||||||||||||||
Insurance and bond premiums
|
96 | 100 | 130 | (4.0 | ) | (26.2 | ) | |||||||||||||
Marketing
|
20 | 15 | 15 | 33.3 | 33.3 | |||||||||||||||
Other general and administrative
|
333 | 316 | 404 | 5.4 | (17.6 | ) | ||||||||||||||
Total noninterest expense
|
$ | 4,769 | $ | 4,508 | $ | 4,510 | 5.8 | 5.7 | ||||||||||||
Income before federal income tax provision
|
4,584 | 4,197 | 4,276 | 9.2 | 7.2 | |||||||||||||||
Federal income tax provision
|
1,644 | 1,462 | 342 | 12.4 | 380.7 | |||||||||||||||
Net income
|
$ | 2,940 | $ | 2,735 | $ | 3,934 | 7.5 | % | (25.3 | )% | ||||||||||
Basic earnings per share
|
$ | 0.20 | $ | 0.19 | $ | 0.25 | ||||||||||||||
Diluted earnings per share
|
$ | 0.20 | $ | 0.19 | $ | 0.25 |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
||||||||||||
Consolidated Income Statements
|
||||||||||||
(Dollars in thousands, except share data)
|
||||||||||||
(Unaudited)
|
||||||||||||
Year Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Interest income
|
||||||||||||
Loans, including fees
|
$ | 36,280 | $ | 36,207 | $ | 38,956 | ||||||
Investments available-for-sale
|
2,287 | 2,250 | 2,143 | |||||||||
Interest-earning deposits
|
115 | 79 | 367 | |||||||||
Dividends on FHLB Stock
|
7 | 3 | - | |||||||||
Total interest income
|
$ | 38,689 | $ | 38,539 | $ | 41,466 | ||||||
Interest expense
|
||||||||||||
Deposits
|
5,063 | 6,794 | 10,191 | |||||||||
FHLB advances
|
1,178 | 732 | 2,055 | |||||||||
Total interest expense
|
$ | 6,241 | $ | 7,526 | $ | 12,246 | ||||||
Net interest income
|
32,448 | 31,013 | 29,220 | |||||||||
(Recapture of provision) provision for loan losses
|
(2,100 | ) | (100 | ) | 3,050 | |||||||
Net interest income after (recapture of provision)
provision for loan losses
|
$ | 34,548 | $ | 31,113 | $ | 26,170 | ||||||
Noninterest income
|
||||||||||||
Net gain (loss) on sale of investments
|
(20 | ) | (38 | ) | 301 | |||||||
Other
|
518 | 929 | 673 | |||||||||
Total noninterest income
|
$ | 498 | $ | 891 | $ | 974 | ||||||
Noninterest expense
|
||||||||||||
Salaries and employee benefits
|
11,987 | 13,966 | 13,916 | |||||||||
Occupancy and equipment
|
1,347 | 1,370 | 1,552 | |||||||||
Professional fees
|
1,540 | 1,619 | 1,850 | |||||||||
Data processing
|
681 | 677 | 701 | |||||||||
Loss (gain) on sale of OREO property, net
|
86 | (1,112 | ) | (607 | ) | |||||||
OREO market value adjustments
|
393 | 403 | 2,046 | |||||||||
OREO related expenses, net
|
190 | 601 | 1,764 | |||||||||
Regulatory assessments
|
396 | 693 | 1,004 | |||||||||
Insurance and bond premiums
|
401 | 518 | 449 | |||||||||
Proxy contest and related litigation
|
- | 106 | 1,054 | |||||||||
Marketing
|
97 | 104 | 227 | |||||||||
Prepayment penalty on FHLB advances
|
- | 679 | - | |||||||||
Other general and administrative
|
1,385 | 1,458 | 1,474 | |||||||||
Total noninterest expense
|
$ | 18,503 | $ | 21,082 | $ | 25,430 | ||||||
Income before federal income tax provision (benefit)
|
16,543 | 10,922 | 1,714 | |||||||||
Federal income tax provision (benefit)
|
5,856 | (13,543 | ) | (999 | ) | |||||||
Net income
|
$ | 10,687 | $ | 24,465 | $ | 2,713 | ||||||
Basic earnings per share
|
$ | 0.72 | $ | 1.47 | $ | 0.15 | ||||||
Diluted earnings per share
|
$ | 0.71 | $ | 1.46 | $ | 0.15 |
December 31,
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
One-to-four family residential:
|
||||||||||||||||
Permanent owner occupied
|
$ | 161,013 | 22.9 | % | $ | 158,797 | 23.0 | % | ||||||||
Permanent non-owner occupied
|
112,180 | 15.9 | 121,877 | 17.7 | ||||||||||||
Construction non-owner occupied
|
500 | 0.1 | - | - | ||||||||||||
273,693 | 38.9 | 280,674 | 40.7 | |||||||||||||
Multifamily:
|
||||||||||||||||
Permanent
|
116,014 | 16.5 | 106,152 | 15.4 | ||||||||||||
Construction
|
4,450 | 0.6 | 12,360 | 1.8 | ||||||||||||
120,464 | 17.1 | 118,512 | 17.2 | |||||||||||||
Commercial real estate:
|
||||||||||||||||
Permanent
|
239,211 | 34.0 | 227,016 | 32.9 | ||||||||||||
Construction
|
6,100 | 0.9 | 19,905 | 2.9 | ||||||||||||
Land
|
2,956 | 0.4 | 1,831 | 0.3 | ||||||||||||
248,267 | 35.3 | 248,752 | 36.1 | |||||||||||||
Construction/land development: (1)
|
||||||||||||||||
One-to-four family residential
|
19,860 | 2.8 | 3,977 | 0.6 | ||||||||||||
Multifamily
|
17,902 | 2.5 | 12,491 | 1.8 | ||||||||||||
Commercial
|
4,300 | 0.6 | 6,726 | 1.0 | ||||||||||||
Land development
|
8,993 | 1.3 | 7,461 | 1.1 | ||||||||||||
51,055 | 7.2 | 30,655 | 4.5 | |||||||||||||
Business
|
3,783 | 0.5 | 1,142 | 0.2 | ||||||||||||
Consumer
|
7,130 | 1.0 | 9,201 | 1.3 | ||||||||||||
Total loans
|
704,392 | 100.0 | % | 688,936 | 100.0 | % | ||||||||||
Less:
|
||||||||||||||||
Loans in Process ("LIP")
|
27,359 | 10,209 | ||||||||||||||
Deferred loan fees, net
|
2,604 | 2,580 | ||||||||||||||
ALLL
|
10,491 | 12,994 | ||||||||||||||
Loans receivable, net
|
$ | 663,938 | $ | 663,153 | ||||||||||||
____________________________ | ||||||||||||||||
(1) Excludes construction loans that will convert to permanent loans. The Company considers 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, 2014, the Company had $6.1 million, or 2.5% of the total commercial real estate portfolio, $4.5 million, or 3.7% of the total multifamily loans, and $500,000, or 0.2% of the total one-to-four family residential in these "rollover" types of loans. At December 31, 2013, the Company had $19.9 million, or 8.0% of the total commercial real estate portfolio, and $12.4 million, or 10.4% of the total multifamily loans in these "rollover" types of loans. At December 31, 2014, and December 31, 2013, $3.0 million and $1.8 million, respectively, of commercial real estate loans were not included in the construction/land development category because the Company classifies raw land or buildable lots (where it does 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,
|
||||||||||||||||
2014
|
2014
|
2014
|
2014
|
2013
|
||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return on assets (1)
|
1.27 | % | 1.21 | % | 1.05 | % | 1.16 | % | 1.86 | % | ||||||||||
Return on equity (1)
|
6.73 | 5.98 | 5.08 | 5.67 | 9.06 | |||||||||||||||
Dividend payout ratio
|
24.42 | 26.32 | 31.25 | 29.41 | 16.00 | |||||||||||||||
Equity-to-assets
|
19.36 | 19.86 | 20.30 | 20.84 | 20.02 | |||||||||||||||
Interest rate spread
|
3.46 | 3.69 | 3.71 | 3.62 | 3.65 | |||||||||||||||
Net interest margin
|
3.61 | 3.84 | 3.86 | 3.78 | 3.82 | |||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
120.92 | 121.36 | 121.39 | 120.94 | 120.85 | |||||||||||||||
Efficiency ratio
|
59.09 | 53.63 | 56.88 | 55.70 | 52.53 | |||||||||||||||
Noninterest expense as a percent of average total assets
|
2.06 | 1.99 | 2.09 | 1.99 | 2.00 | |||||||||||||||
Book value per common share
|
$ | 11.96 | $ | 11.76 | $ | 11.60 | $ | 11.42 | $ | 11.25 | ||||||||||
Capital Ratios (2):
|
||||||||||||||||||||
Tier 1 leverage
|
11.79 | % | 18.98 | % | 18.91 | % | 18.61 | % | 18.60 | % | ||||||||||
Tier 1 risk-based
|
18.30 | 27.93 | 28.05 | 26.98 | 27.18 | |||||||||||||||
Total risk-based
|
19.56 | 29.18 | 29.31 | 28.24 | 28.44 | |||||||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Nonperforming loans as a percent of total loans, net of undisbursed funds
|
0.20 | 0.23 | 0.33 | 0.37 | 0.59 | |||||||||||||||
Nonperforming assets as a percent of total assets
|
1.13 | 1.24 | 1.38 | 1.57 | 1.68 | |||||||||||||||
ALLL as a percent of total loans, net of undisbursed funds
|
1.55 | 1.67 | 1.73 | 1.76 | 1.91 | |||||||||||||||
ALLL as a percent of nonperforming loans, net of undisbursed funds
|
783.50 | 741.73 | 518.93 | 477.23 | 325.26 | |||||||||||||||
Net charge-offs (recoveries) to average loans receivable, net
|
- | - | 0.01 | 0.06 | (0.14 | ) | ||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||
ALLL, beginning of the quarter
|
$ | 11,660 | $ | 11,951 | $ | 12,093 | $ | 12,994 | $ | 12,271 | ||||||||||
Recapture of provision
|
(1,200 | ) | (300 | ) | (100 | ) | (500 | ) | (200 | ) | ||||||||||
Charge-offs
|
- | (9 | ) | (80 | ) | (553 | ) | (333 | ) | |||||||||||
Recoveries
|
31 | 18 | 38 | 152 | 1,256 | |||||||||||||||
ALLL, end of the quarter
|
$ | 10,491 | $ | 11,660 | $ | 11,951 | $ | 12,093 | $ | 12,994 | ||||||||||
Nonperforming Assets (3):
|
||||||||||||||||||||
Nonperforming loans (4):
|
||||||||||||||||||||
Nonaccrual loans
|
$ | 1,339 | $ | 1,572 | $ | 1,845 | $ | 2,065 | $ | 3,027 | ||||||||||
Nonaccrual TDRs
|
- | - | 458 | 469 | 968 | |||||||||||||||
Total nonperforming loans
|
1,339 | 1,572 | 2,303 | 2,534 | 3,995 | |||||||||||||||
OREO
|
9,283 | 9,819 | 10,114 | 11,609 | 11,465 | |||||||||||||||
Total nonperforming assets
|
$ | 10,622 | $ | 11,391 | $ | 12,417 | $ | 14,143 | $ | 15,460 | ||||||||||
Performing TDRs
|
$ | 54,241 | $ | 55,802 | $ | 56,783 | $ | 60,072 | $ | 60,170 | ||||||||||
____________ | ||||||||||||||||||||
(1) Deferred tax asset valuation allowance reversal during the quarter ended December 31, 2013, was not annualized in the calculation of these ratios.
|
||||||||||||||||||||
(2) Capital ratios are for First Savings Bank Northwest only.
|
||||||||||||||||||||
(3) Loans are reported net of undisbursed funds.
|
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(4) There were no loans 90 days or more past due and still accruing interest.
|
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
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Key Financial Ratios
(Unaudited)
|
||||||||||||||||||||
At or For the Year Ended December 31,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return (loss) on assets
|
1.17 | % | 2.73 | % | 0.27 | % | 0.37 | % | (4.18 | )% | ||||||||||
Return (loss) on equity
|
5.85 | 13.12 | 1.47 | 2.36 | (26.59 | ) | ||||||||||||||
Dividend payout ratio
|
27.73 | 8.11 | - | - | (2.73 | ) | ||||||||||||||
Equity-to-assets
|
19.36 | 20.02 | 19.85 | 17.12 | 14.62 | |||||||||||||||
Interest rate spread
|
3.62 | 3.49 | 2.85 | 2.78 | 2.40 | |||||||||||||||
Net interest margin
|
3.77 | 3.68 | 3.08 | 3.01 | 2.70 | |||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
121.15 | 121.77 | 118.12 | 113.33 | 113.35 | |||||||||||||||
Efficiency ratio
|
56.37 | 66.08 | 84.22 | 74.62 | 91.33 | |||||||||||||||
Noninterest expense as a percent of average total assets
|
2.03 | 2.36 | 2.54 | 2.29 | 2.41 | |||||||||||||||
Book value per common share
|
$ | 11.96 | $ | 11.25 | $ | 9.95 | $ | 9.64 | $ | 9.28 | ||||||||||
Capital Ratios: (1)
|
||||||||||||||||||||
Tier 1 leverage
|
11.79 | % | 18.60 | % | 15.79 | % | 13.54 | % | 11.73 | % | ||||||||||
Tier 1 risk-based
|
18.30 | 27.18 | 26.11 | 23.49 | 18.38 | |||||||||||||||
Total risk-based
|
19.56 | 28.44 | 27.37 | 24.76 | 19.65 | |||||||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Nonperforming loans as a percent of total loans, net of undisbursed funds
|
0.20 | % | 0.59 | % | 3.42 | % | 3.28 | % | 7.14 | % | ||||||||||
Nonperforming assets as a percent of total assets
|
1.13 | 1.68 | 4.25 | 4.69 | 7.79 | |||||||||||||||
ALLL as a percent of total loans, net of undisbursed funds
|
1.55 | 1.91 | 1.89 | 2.29 | 2.56 | |||||||||||||||
ALLL as a percent of nonperforming loans, net of undisbursed funds
|
783.50 | 325.26 | 55.11 | 69.89 | 35.80 | |||||||||||||||
Net charge-offs (recoveries) to average loans receivable, net
|
0.06 | (0.08 | ) | 1.07 | 1.39 | 6.55 | ||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||
ALLL, beginning of the year
|
$ | 12,994 | $ | 12,542 | $ | 16,559 | $ | 22,534 | $ | 33,039 | ||||||||||
Provision
|
(2,100 | ) | (100 | ) | 3,050 | 4,700 | 53,100 | |||||||||||||
Charge-offs
|
(642 | ) | (1,596 | ) | (9,591 | ) | (11,025 | ) | (65,476 | ) | ||||||||||
Recoveries
|
239 | 2,148 | 2,524 | 350 | 1,871 | |||||||||||||||
ALLL, end of the year
|
$ | 10,491 | $ | 12,994 | $ | 12,542 | $ | 16,559 | $ | 22,534 | ||||||||||
Nonperforming Assets: (2)
|
||||||||||||||||||||
Nonperforming loans: (3)
|
||||||||||||||||||||
Nonaccrual loans
|
$ | 1,339 | $ | 3,027 | $ | 18,231 | $ | 18,613 | $ | 46,637 | ||||||||||
Nonaccrual TDRs
|
- | 968 | 4,528 | 5,079 | 16,299 | |||||||||||||||
Total nonperforming loans
|
1,339 | 3,995 | 22,759 | 23,692 | 62,936 | |||||||||||||||
OREO
|
9,283 | 11,465 | 17,347 | 26,044 | 30,102 | |||||||||||||||
Total nonperforming assets
|
$ | 10,622 | $ | 15,460 | $ | 40,106 | $ | 49,736 | $ | 93,038 | ||||||||||
Performing TDRs
|
$ | 54,241 | $ | 60,170 | $ | 65,848 | $ | 66,225 | $ | 58,375 | ||||||||||
____________ | ||||||||||||||||||||
(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.
|