Washington
|
001-33652
|
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: October 26, 2017
|
By: Richard P. Jacobson
|
|
Richard P. Jacobson
Executive Vice President and
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
|
At or For the Three Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||||
Noninterest-
bearing
demand
|
Interest-
bearing
demand
|
Statement
savings
|
Money
market
|
Certificates
of deposit, retail
|
Certificates
of deposit,
brokered
|
Total
|
Average
cost of
deposits
|
|||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
King County:
|
||||||||||||||||||||||||||||||||
Renton
|
$
|
31,071
|
$
|
17,016
|
$
|
25,717
|
$
|
202,896
|
$
|
311,728
|
$
|
-
|
$
|
588,428
|
0.93
|
%
|
||||||||||||||||
The Landing
|
1,148
|
442
|
39
|
11,778
|
6,279
|
-
|
19,686
|
1.05
|
||||||||||||||||||||||||
Woodinville (1)
|
3,104
|
3,151
|
613
|
19,454
|
7,124
|
-
|
33,446
|
0.74
|
||||||||||||||||||||||||
Crossroads
|
163
|
147
|
1
|
8,890
|
630
|
-
|
9,831
|
0.93
|
||||||||||||||||||||||||
Total King County
|
35,486
|
20,756
|
26,370
|
243,018
|
325,761
|
-
|
651,391
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Snohomish County:
|
||||||||||||||||||||||||||||||||
Mill Creek
|
1,192
|
2,079
|
751
|
11,719
|
5,443
|
-
|
21,184
|
0.86
|
||||||||||||||||||||||||
Edmonds
|
1,441
|
1,226
|
31
|
16,581
|
6,556
|
-
|
25,835
|
1.02
|
||||||||||||||||||||||||
Clearview (1)
|
5,865
|
3,713
|
1,329
|
7,138
|
1,946
|
-
|
19,991
|
0.38
|
||||||||||||||||||||||||
Lake Stevens (1)
|
1,914
|
1,444
|
535
|
2,833
|
2,680
|
-
|
9,406
|
0.44
|
||||||||||||||||||||||||
Smokey Point (1)
|
1,754
|
2,372
|
409
|
4,171
|
3,739
|
-
|
12,445
|
0.53
|
||||||||||||||||||||||||
Total Snohomish County
|
12,166
|
10,834
|
3,055
|
42,442
|
20,364
|
-
|
88,861
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total retail deposits
|
47,652
|
31,590
|
29,425
|
285,460
|
346,125
|
-
|
740,252
|
0.92
|
||||||||||||||||||||||||
Brokered deposits
|
-
|
-
|
-
|
-
|
-
|
75,488
|
75,488
|
1.67
|
||||||||||||||||||||||||
Total deposits
|
$
|
47,652
|
$
|
31,590
|
$
|
29,425
|
$
|
285,460
|
$
|
346,125
|
$
|
75,488
|
$
|
815,740
|
1.00
|
%
|
|
At or For the Three Months Ended June 30, 2017
|
|||||||||||||||||||||||||||||||
|
Noninterest-
bearing
demand
|
Interest-
bearing
demand
|
Statement
savings
|
Money
market |
Certificates
of deposit, retail
|
Certificates
of deposit, brokered
|
Total
|
Average
cost of
deposits
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
King County:
|
||||||||||||||||||||||||||||||||
Renton
|
$
|
31,899
|
$
|
17,689
|
$
|
25,909
|
$
|
199,682
|
$
|
327,788
|
$
|
-
|
$
|
602,967
|
0.88
|
%
|
||||||||||||||||
The Landing
|
426
|
319
|
26
|
9,163
|
5,898
|
-
|
15,832
|
1.12
|
||||||||||||||||||||||||
Crossroads
|
8
|
4
|
-
|
1,731
|
25
|
-
|
1,768
|
1.03
|
||||||||||||||||||||||||
Total King County
|
32,333
|
18,012
|
25,935
|
210,576
|
333,711
|
-
|
620,567
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Snohomish County:
|
||||||||||||||||||||||||||||||||
Mill Creek
|
1,557
|
1,694
|
699
|
10,319
|
5,413
|
-
|
19,682
|
0.90
|
||||||||||||||||||||||||
Edmonds
|
1,236
|
1,353
|
34
|
11,311
|
5,904
|
-
|
19,838
|
1.01
|
||||||||||||||||||||||||
Total Snohomish County
|
2,793
|
3,047
|
733
|
21,630
|
11,317
|
-
|
39,520
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total retail deposits
|
35,126
|
21,059
|
26,668
|
232,206
|
345,028
|
-
|
660,087
|
0.90
|
||||||||||||||||||||||||
Brokered deposits
|
-
|
-
|
-
|
-
|
-
|
75,488
|
75,488
|
1.67
|
||||||||||||||||||||||||
Total deposits
|
$
|
35,126
|
$
|
21,059
|
$
|
26,668
|
$
|
232,206
|
$
|
345,028
|
$
|
75,488
|
$
|
735,575
|
0.98
|
%
|
·
|
During the quarter ended September 30, 2017, the Company repurchased 290,500 shares of its common stock at an average price of $15.99 per share under a stock repurchase plan authorized by the Board of Directors on May 22, 2017. From May 22, 2017, through October 25, 2017, the Company repurchased 313,200 shares under the plan at an average price of $15.99 per share. The stock repurchase plan authorizes the repurchase of up to 1.1 million shares of the Company's common stock, or 10% of its outstanding shares and expires on or before November 30, 2017.
|
·
|
Our portfolio of aircraft loans increased to $11.3 million at September 30, 2017, compared to $6.2 million at June 30, 2017, and none at September 30, 2016.
|
·
|
The Company's book value per share was $13.08 at September 30, 2017, compared to $13.00 at June 30, 2017, and $12.70 at September 30, 2016.
|
·
|
The Bank's Tier 1 leverage and total capital ratios at September 30, 2017, were 10.8% and 14.2%, respectively, compared to 11.5% and 15.2% at June 30, 2017, and 11.4% and 14.4% at September 30, 2016.
|
·
|
The Company's net loans receivable increased $70.2 million during the quarter to $931.9 million at September 30, 2017, from $861.7 million at June 30, 2017, and $845.9 million at September 30, 2016.
|
·
|
During the quarter, the Bank received recoveries on loans previously charged off totaling $325,000, decreasing the provision necessary to support the Company's net loan growth.
|
·
|
There were $84,000 in delinquent loans (loans over 30 days past due) at September 30, 2017, compared to $85,000 in delinquent loans at June 30, 2017, and $206,000 at September 30, 2016.
|
·
|
Nonperforming loans declined to $185,000 at September 30, 2017, compared to $583,000 at June 30, 2017, and $1.1 million at September 30, 2016.
|
·
|
Nonperforming loans as a percentage of total loans declined to 0.02% at September 30, 2017, compared to 0.07% at June 30, 2017, and 0.12% at September 30, 2016.
|
Three
|
||||||||||||||||||||
Sep 30,
|
Jun 30,
|
Sep 30,
|
Month
|
One Year
|
||||||||||||||||
2017
|
2017
|
2016
|
Change
|
Change
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Nonperforming loans:
|
||||||||||||||||||||
One-to-four family residential
|
$
|
132
|
$
|
528
|
$
|
986
|
$
|
(396
|
)
|
$
|
(854
|
)
|
||||||||
Consumer
|
53
|
55
|
87
|
(2
|
)
|
(34
|
)
|
|||||||||||||
Total nonperforming loans
|
185
|
583
|
1,073
|
(398
|
)
|
(888
|
)
|
|||||||||||||
OREO
|
1,825
|
1,825
|
2,331
|
-
|
(506
|
)
|
||||||||||||||
Total nonperforming assets (1)
|
$
|
2,010
|
$
|
2,408
|
$
|
3,404
|
$
|
(398
|
)
|
$
|
(1,394
|
)
|
||||||||
Nonperforming assets as a
|
||||||||||||||||||||
percent of total assets
|
0.17
|
%
|
0.22
|
%
|
0.32
|
%
|
Sep 30,
2017 |
Jun 30,
2017 |
Sep 30,
2016 |
Three Month
Change |
One Year
Change |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Nonperforming TDRs:
|
||||||||||||||||||||
One-to-four family residential
|
$
|
-
|
$
|
106
|
$
|
182
|
$
|
(106
|
)
|
$
|
(182
|
)
|
||||||||
Total nonperforming TDRs
|
-
|
106
|
182
|
(106
|
)
|
(182
|
)
|
|||||||||||||
Performing TDRs:
|
||||||||||||||||||||
One-to-four family residential
|
15,174
|
19,152
|
$
|
27,268
|
$
|
(3,978
|
)
|
$
|
(12,094
|
)
|
||||||||||
Multifamily
|
1,140
|
1,146
|
1,572
|
(6
|
)
|
(432
|
)
|
|||||||||||||
Commercial real estate
|
3,216
|
3,660
|
4,917
|
(444
|
)
|
(1,701
|
)
|
|||||||||||||
Consumer
|
43
|
43
|
43
|
(0
|
)
|
(0
|
)
|
|||||||||||||
Total performing TDRs
|
19,573
|
24,001
|
33,800
|
(4,427
|
)
|
(14,227
|
)
|
|||||||||||||
Total TDRs
|
$
|
19,573
|
$
|
24,107
|
$
|
33,982
|
$
|
(4,533
|
)
|
$
|
(14,409
|
)
|
Sep 30,
2017 |
Jun 30,
2017 |
Sep 30,
2016 |
Three
Month Change |
One Year Change
|
||||||||||||||||
Deposits:
|
(Dollars in thousands)
|
|||||||||||||||||||
Noninterest-bearing
|
$
|
47,652
|
$
|
35,126
|
$
|
33,060
|
$
|
12,526
|
$
|
14,592
|
||||||||||
Interest-bearing demand
|
31,590
|
21,059
|
15,864
|
10,531
|
15,726
|
|||||||||||||||
Statement savings
|
29,425
|
26,668
|
28,939
|
2,757
|
486
|
|||||||||||||||
Money market
|
285,460
|
232,206
|
188,298
|
53,254
|
97,162
|
|||||||||||||||
Certificates of deposit, retail (1)
|
346,125
|
345,028
|
350,522
|
1,097
|
(4,397
|
)
|
||||||||||||||
Certificates of deposit, brokered
|
75,488
|
75,488
|
75,488
|
-
|
-
|
|||||||||||||||
Total deposits
|
$
|
815,740
|
$
|
735,575
|
$
|
692,171
|
$
|
80,165
|
$
|
123,569
|
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
|
Consolidated Balance Sheets
|
|
(Dollars in thousands, except share data)
|
|
(Unaudited)
|
Assets
|
Sep 30,
2017
|
Jun 30,
2017
|
Sep 30,
2016
|
Three
Month Change |
One Year
Change
|
|||||||||||||||
Cash on hand and in banks
|
$
|
7,910
|
$
|
7,418
|
$
|
5,803
|
6.6
|
%
|
36.3
|
%
|
||||||||||
Interest-earning deposits
|
14,093
|
10,996
|
26,708
|
28.2
|
(47.2
|
)
|
||||||||||||||
Investments available-for-sale, at fair value
|
137,847
|
133,951
|
133,865
|
2.9
|
3.0
|
|||||||||||||||
Loans receivable, net of allowance of $12,110,
$11,285, and $11,006, respectively
|
931,862
|
861,672
|
845,930
|
8.1
|
10.2
|
|||||||||||||||
Premises and equipment, net
|
20,568
|
19,501
|
18,296
|
5.5
|
12.4
|
|||||||||||||||
Federal Home Loan Bank ("FHLB") stock, at cost
|
8,902
|
8,902
|
10,031
|
0.0
|
(11.3
|
)
|
||||||||||||||
Accrued interest receivable
|
3,709
|
3,165
|
3,378
|
17.2
|
9.8
|
|||||||||||||||
Deferred tax assets, net
|
2,381
|
2,620
|
3,053
|
(9.1
|
)
|
(22.0
|
)
|
|||||||||||||
Other real estate owned ("OREO")
|
1,825
|
1,825
|
2,331
|
0.0
|
(21.7
|
)
|
||||||||||||||
Bank owned life insurance ("BOLI"), net
|
28,894
|
28,721
|
23,950
|
0.6
|
20.6
|
|||||||||||||||
Prepaid expenses and other assets
|
3,304
|
2,937
|
1,353
|
12.5
|
144.2
|
|||||||||||||||
Goodwill
|
979
|
-
|
-
|
n/a
|
n/a
|
|||||||||||||||
Core deposit intangible
|
1,304
|
-
|
-
|
n/a
|
n/a
|
|||||||||||||||
Total assets
|
$
|
1,163,578
|
$
|
1,081,708
|
$
|
1,074,698
|
7.6
|
%
|
8.3
|
%
|
||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
47,652
|
$
|
35,126
|
$
|
33,060
|
35.7
|
%
|
44.1
|
%
|
||||||||||
Interest-bearing deposits
|
768,088
|
700,449
|
659,111
|
9.7
|
16.5
|
|||||||||||||||
Total deposits
|
815,740
|
735,575
|
692,171
|
10.9
|
17.9
|
|||||||||||||||
Advances from the FHLB
|
191,500
|
191,500
|
221,500
|
0.0
|
(13.5
|
)
|
||||||||||||||
Advance payments from borrowers for taxes and
insurance
|
4,267
|
2,183
|
3,752
|
95.5
|
13.7
|
|||||||||||||||
Accrued interest payable
|
280
|
286
|
116
|
(2.1
|
)
|
141.4
|
||||||||||||||
Other liabilities
|
11,031
|
8,650
|
6,105
|
27.5
|
80.7
|
|||||||||||||||
Total liabilities
|
1,022,818
|
938,194
|
923,644
|
9.0
|
%
|
10.7
|
%
|
|||||||||||||
Commitments and contingencies
|
||||||||||||||||||||
Stockholders' Equity
|
||||||||||||||||||||
Preferred stock, $0.01 par value; authorized
10,000,000 shares; no shares issued or |
||||||||||||||||||||
outstanding
|
$
|
-
|
$
|
-
|
$
|
-
|
n/a
|
n/a
|
||||||||||||
Common stock, $0.01 par value; authorized
90,000,000 shares; issued and outstanding
|
||||||||||||||||||||
10,763,915 shares at September 30, 2017,
11,041,865 shares at June 30, 2017, and
|
||||||||||||||||||||
11,898,149 shares at September 30, 2016
|
108
|
110
|
119
|
(1.8
|
)%
|
(9.2
|
)%
|
|||||||||||||
Additional paid-in capital
|
94,168
|
98,469
|
111,066
|
(4.4
|
)
|
(15.2
|
)
|
|||||||||||||
Retained earnings, substantially restricted
|
52,984
|
51,844
|
46,569
|
2.2
|
13.8
|
|||||||||||||||
Accumulated other comprehensive (loss) income,
net of tax
|
(857
|
)
|
(984
|
)
|
71
|
(12.9
|
)
|
(1307.0
|
)
|
|||||||||||
Unearned Employee Stock Ownership Plan
("ESOP") shares
|
(5,643
|
)
|
(5,925
|
)
|
(6,771
|
)
|
(4.8
|
)
|
(16.7
|
)
|
||||||||||
Total stockholders' equity
|
140,760
|
143,514
|
151,054
|
(1.9
|
)
|
(6.8
|
)
|
|||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,163,578
|
$
|
1,081,708
|
$
|
1,074,698
|
7.6
|
%
|
8.3
|
%
|
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
|||||
Consolidated Income Statements
|
|||||
(Dollars in thousands, except share data)
|
|||||
(Unaudited)
|
Sep 30,
2017
|
Jun 30,
2017
|
Sep 30,
2016
|
Three
Month Change |
One
Year Change |
||||||||||||||||
Interest income
|
||||||||||||||||||||
Loans, including fees
|
$
|
10,959
|
$
|
10,352
|
$
|
9,967
|
5.9
|
%
|
10.0
|
%
|
||||||||||
Investments available-for-sale
|
869
|
887
|
792
|
(2.0
|
)
|
9.7
|
||||||||||||||
Interest-earning deposits with banks
|
108
|
42
|
38
|
157.1
|
184.2
|
|||||||||||||||
Dividends on FHLB Stock
|
67
|
62
|
45
|
8.1
|
48.9
|
|||||||||||||||
Total interest income
|
12,003
|
11,343
|
10,842
|
5.8
|
10.7
|
|||||||||||||||
Interest expense
|
||||||||||||||||||||
Deposits
|
1,933
|
1,776
|
1,545
|
8.8
|
25.1
|
|||||||||||||||
FHLB advances and other borrowings
|
695
|
570
|
363
|
21.9
|
91.5
|
|||||||||||||||
Total interest expense
|
2,628
|
2,346
|
1,908
|
12.0
|
37.7
|
|||||||||||||||
Net interest income
|
9,375
|
8,997
|
8,934
|
4.2
|
4.9
|
|||||||||||||||
Provision for loan losses
|
500
|
100
|
900
|
400.0
|
(44.4
|
)
|
||||||||||||||
Net interest income after provision for loan losses
|
8,875
|
8,897
|
8,034
|
(0.2
|
)
|
10.5
|
||||||||||||||
Noninterest income
|
||||||||||||||||||||
Net gain on sale of investments
|
47
|
56
|
33
|
(16.1
|
)
|
42.4
|
||||||||||||||
BOLI income
|
173
|
116
|
251
|
49.1
|
(31.1
|
)
|
||||||||||||||
Wealth management revenue
|
252
|
307
|
165
|
(17.9
|
)
|
52.7
|
||||||||||||||
Other
|
259
|
252
|
224
|
2.8
|
15.6
|
|||||||||||||||
Total noninterest income
|
731
|
731
|
673
|
0.0
|
8.6
|
|||||||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and employee benefits
|
4,406
|
4,409
|
3,821
|
(0.1
|
)
|
15.3
|
||||||||||||||
Occupancy and equipment
|
726
|
579
|
467
|
25.4
|
55.5
|
|||||||||||||||
Professional fees
|
458
|
482
|
458
|
(5.0
|
)
|
0.0
|
||||||||||||||
Data processing
|
372
|
519
|
259
|
(28.3
|
)
|
43.6
|
||||||||||||||
OREO related (reimbursements), net
|
(6
|
)
|
(20
|
)
|
(11
|
)
|
(70.0
|
)
|
(45.5
|
)
|
||||||||||
Regulatory assessments
|
122
|
112
|
82
|
8.9
|
48.8
|
|||||||||||||||
Insurance and bond premiums
|
105
|
98
|
86
|
7.1
|
22.1
|
|||||||||||||||
Marketing
|
102
|
52
|
67
|
96.2
|
52.2
|
|||||||||||||||
Other general and administrative
|
551
|
605
|
25
|
(8.9
|
)
|
2,104.0
|
||||||||||||||
Total noninterest expense
|
6,836
|
6,836
|
5,254
|
0.0
|
30.1
|
|||||||||||||||
Income before federal income tax provision
|
2,770
|
2,792
|
3,453
|
(0.8
|
)
|
(19.8
|
)
|
|||||||||||||
Federal income tax provision
|
909
|
924
|
847
|
(1.6
|
)
|
7.3
|
||||||||||||||
Net income
|
$
|
1,861
|
$
|
1,868
|
$
|
2,606
|
(0.4
|
)%
|
(28.6
|
)%
|
||||||||||
Basic earnings per share
|
$
|
0.18
|
$
|
0.18
|
$
|
0.22
|
||||||||||||||
Diluted earnings per share
|
$
|
0.18
|
$
|
0.18
|
$
|
0.22
|
||||||||||||||
Weighted average number of common shares
outstanding
|
10,287,663
|
10,363,345
|
11,859,683
|
|||||||||||||||||
Weighted average number of diluted shares
outstanding
|
10,427,038
|
10,500,829
|
12,011,952
|
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
||||||||||||
Consolidated Income Statements
|
||||||||||||
(Dollars in thousands, except share data)
|
||||||||||||
(Unaudited)
|
||||||||||||
Nine Months Ended
|
||||||||||||
September 30,
|
||||||||||||
One Year
Change
|
||||||||||||
2017
|
2016
|
|||||||||||
Interest income
|
||||||||||||
Loans, including fees
|
$
|
31,338
|
$
|
27,742
|
13.0
|
%
|
||||||
Investments available-for-sale
|
2,601
|
2,224
|
17.0
|
|||||||||
Interest-earning deposits with banks
|
194
|
198
|
(2.0
|
)
|
||||||||
Dividends on FHLB Stock
|
211
|
136
|
55.1
|
|||||||||
Total interest income
|
34,344
|
30,300
|
13.3
|
|||||||||
Interest expense
|
||||||||||||
Deposits
|
5,400
|
4,469
|
20.8
|
|||||||||
FHLB advances and other borrowings
|
1,710
|
933
|
83.3
|
|||||||||
Total interest expense
|
7,110
|
5,402
|
31.6
|
|||||||||
Net interest income
|
27,234
|
24,898
|
9.4
|
|||||||||
Provision for loan losses
|
800
|
1,400
|
(42.9
|
)
|
||||||||
Net interest income after provision for loan losses
|
26,434
|
23,498
|
12.5
|
|||||||||
Noninterest income
|
||||||||||||
Net gain on sale of investments
|
103
|
33
|
212.1
|
|||||||||
BOLI income
|
490
|
641
|
(23.6
|
)
|
||||||||
Wealth management revenue
|
699
|
656
|
6.6
|
|||||||||
Other
|
705
|
531
|
32.8
|
|||||||||
Total noninterest income
|
1,997
|
1,861
|
7.3
|
|||||||||
Noninterest expense
|
||||||||||||
Salaries and employee benefits
|
13,100
|
11,436
|
14.6
|
|||||||||
Occupancy and equipment
|
1,785
|
1,463
|
22.0
|
|||||||||
Professional fees
|
1,379
|
1,487
|
(7.3
|
)
|
||||||||
Data processing
|
1,131
|
700
|
61.6
|
|||||||||
OREO related expenses, net
|
14
|
299
|
(95.3
|
)
|
||||||||
Regulatory assessments
|
330
|
319
|
3.4
|
|||||||||
Insurance and bond premiums
|
302
|
260
|
16.2
|
|||||||||
Marketing
|
202
|
145
|
39.3
|
|||||||||
Other general and administrative
|
1,497
|
990
|
51.2
|
|||||||||
Total noninterest expense
|
19,740
|
17,099
|
15.4
|
|||||||||
Income before federal income tax provision
|
8,691
|
8,260
|
5.2
|
|||||||||
Federal income tax provision
|
2,618
|
2,389
|
9.6
|
|||||||||
Net income
|
$
|
6,073
|
$
|
5,871
|
3.4
|
%
|
||||||
Basic earnings per share
|
$
|
0.59
|
$
|
0.47
|
||||||||
Diluted earnings per share
|
$
|
0.58
|
$
|
0.47
|
||||||||
Weighted average number of common shares outstanding
|
10,323,459
|
12,329,815
|
||||||||||
Weighted average number of diluted shares outstanding
|
10,480,061
|
12,481,379
|
September 30, 2017
|
June 30, 2017
|
September 30, 2016
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Residential:
|
||||||||||||||||||||||||
Micro-unit apartments
|
$
|
7,053
|
0.7
|
%
|
$
|
5,580
|
0.6
|
%
|
$
|
7,914
|
0.9
|
%
|
||||||||||||
Other multifamily
|
166,628
|
16.1
|
120,304
|
12.5
|
127,500
|
13.7
|
||||||||||||||||||
Total Multifamily
|
173,681
|
16.8
|
125,884
|
13.1
|
135,414
|
14.6
|
||||||||||||||||||
Non-residential:
|
||||||||||||||||||||||||
Office
|
99,350
|
9.6
|
95,256
|
9.9
|
104,448
|
11.3
|
||||||||||||||||||
Retail
|
101,787
|
9.8
|
99,482
|
10.3
|
128,561
|
13.8
|
||||||||||||||||||
Mobile home park
|
21,344
|
2.1
|
21,851
|
2.3
|
23,120
|
2.5
|
||||||||||||||||||
Warehouse
|
22,788
|
2.2
|
21,491
|
2.2
|
15,399
|
1.7
|
||||||||||||||||||
Storage
|
32,365
|
3.1
|
35,121
|
3.6
|
34,988
|
3.8
|
||||||||||||||||||
Other non-residential
|
42,782
|
4.1
|
44,017
|
4.6
|
22,688
|
2.4
|
||||||||||||||||||
Total non-residential
|
320,416
|
30.9
|
317,218
|
32.9
|
329,204
|
35.5
|
||||||||||||||||||
Construction/land development:
|
||||||||||||||||||||||||
One-to-four family residential
|
85,593
|
8.3
|
76,404
|
7.9
|
64,444
|
6.9
|
||||||||||||||||||
Multifamily
|
115,345
|
11.1
|
123,497
|
12.8
|
98,796
|
10.6
|
||||||||||||||||||
Commercial
|
5,325
|
0.5
|
1,100
|
0.1
|
-
|
0.0
|
||||||||||||||||||
Land
|
38,423
|
3.7
|
39,012
|
4.1
|
31,709
|
3.4
|
||||||||||||||||||
Total construction/land development
|
244,686
|
23.6
|
240,013
|
24.9
|
194,949
|
20.9
|
||||||||||||||||||
One-to-four family residential:
|
||||||||||||||||||||||||
Permanent owner occupied
|
139,736
|
13.5
|
137,816
|
14.3
|
148,304
|
16.0
|
||||||||||||||||||
Permanent non-owner occupied
|
126,711
|
12.2
|
118,816
|
12.3
|
105,277
|
11.3
|
||||||||||||||||||
Total one-to-four family residential
|
266,447
|
25.7
|
256,632
|
26.6
|
253,581
|
27.3
|
||||||||||||||||||
Business:
|
||||||||||||||||||||||||
Aircraft
|
11,317
|
1.1
|
6,235
|
0.7
|
-
|
0.0
|
||||||||||||||||||
Other business
|
10,926
|
1.0
|
8,971
|
0.9
|
8,023
|
0.9
|
||||||||||||||||||
Total business
|
22,243
|
2.1
|
15,206
|
1.6
|
8,023
|
0.9
|
||||||||||||||||||
Consumer
|
9,301
|
0.9
|
9,031
|
0.9
|
6,526
|
0.7
|
||||||||||||||||||
Total loans
|
1,036,774
|
100.0
|
%
|
963,984
|
100.0
|
%
|
927,697
|
100.0
|
%
|
|||||||||||||||
Less:
|
||||||||||||||||||||||||
Loans in Process ("LIP")
|
91,316
|
88,475
|
68,492
|
|||||||||||||||||||||
Deferred loan fees, net
|
1,486
|
2,552
|
2,269
|
|||||||||||||||||||||
ALLL
|
12,110
|
11,285
|
11,006
|
|||||||||||||||||||||
Loans receivable, net
|
$
|
931,862
|
$
|
861,672
|
$
|
845,930
|
||||||||||||||||||
Concentrations of credit: (1)
|
||||||||||||||||||||||||
Construction loans as % of total capital
|
114.4
|
%
|
115.3
|
%
|
97.1
|
%
|
||||||||||||||||||
Total non-owner occupied commercial real estate as % of total capital
|
478.9
|
%
|
443.0
|
%
|
446.9
|
%
|
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
||||||||||||||||||||
Key Financial Measures
|
||||||||||||||||||||
At or For the Quarter Ended
|
||||||||||||||||||||
Sep 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
||||||||||||||||
2017
|
2017
|
2017
|
2016
|
2016
|
||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return on assets
|
0.66
|
%
|
0.70
|
%
|
0.91
|
%
|
1.12
|
%
|
1.00
|
%
|
||||||||||
Return on equity
|
5.13
|
5.22
|
6.76
|
8.58
|
6.39
|
|||||||||||||||
Dividend payout ratio
|
38.89
|
38.89
|
26.09
|
20.62
|
27.38
|
|||||||||||||||
Equity-to-assets ratio
|
12.10
|
13.27
|
13.37
|
13.31
|
14.06
|
|||||||||||||||
Interest rate spread
|
3.38
|
3.47
|
3.51
|
3.53
|
3.51
|
|||||||||||||||
Net interest margin
|
3.53
|
3.60
|
3.64
|
3.65
|
3.64
|
|||||||||||||||
Average interest-earning assets to average
interest-bearing liabilities
|
114.08
|
114.29
|
114.74
|
113.75
|
117.43
|
|||||||||||||||
Efficiency ratio
|
67.64
|
70.27
|
64.57
|
57.96
|
54.69
|
|||||||||||||||
Noninterest expense as a percent of average
total assets
|
2.42
|
2.57
|
2.35
|
2.17
|
2.01
|
|||||||||||||||
Book value per common share
|
$
|
13.08
|
$
|
13.00
|
$
|
12.84
|
$
|
12.63
|
$
|
12.70
|
||||||||||
Capital Ratios: (1)
|
||||||||||||||||||||
Tier 1 leverage ratio
|
10.80
|
%
|
11.46
|
%
|
11.57
|
%
|
11.17
|
%
|
11.37
|
%
|
||||||||||
Common equity tier 1 capital ratio
|
12.94
|
13.95
|
14.39
|
14.36
|
13.13
|
|||||||||||||||
Tier 1 capital ratio
|
12.94
|
13.95
|
14.39
|
14.36
|
13.13
|
|||||||||||||||
Total capital ratio
|
14.19
|
15.20
|
15.64
|
15.61
|
14.38
|
|||||||||||||||
Asset Quality Ratios: (2)
|
||||||||||||||||||||
Nonperforming loans as a percent of total loans
|
0.02
|
%
|
0.07
|
%
|
0.07
|
%
|
0.10
|
%
|
0.12
|
%
|
||||||||||
Nonperforming assets as a percent of total assets
|
0.17
|
0.22
|
0.27
|
0.31
|
0.32
|
|||||||||||||||
ALLL as a percent of total loans
|
1.28
|
1.29
|
1.31
|
1.32
|
1.28
|
|||||||||||||||
ALLL as a percent of nonperforming loans
|
6,545.95
|
1,935.68
|
1,853.49
|
1,276.34
|
1,025.72
|
|||||||||||||||
Net charge-offs (recoveries) to average loans receivable, net
|
(0.04
|
)
|
0.00
|
0.00
|
(0.01
|
)
|
0.00
|
|||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||
ALLL, beginning of the quarter
|
$
|
11,285
|
$
|
11,158
|
$
|
10,951
|
$
|
11,006
|
$
|
10,134
|
||||||||||
Provision (Recapture of provision)
|
500
|
100
|
200
|
(100
|
)
|
900
|
||||||||||||||
Charge-offs
|
-
|
-
|
-
|
(37
|
)
|
(28
|
)
|
|||||||||||||
Recoveries
|
325
|
27
|
7
|
82
|
-
|
|||||||||||||||
ALLL, end of the quarter
|
$
|
12,110
|
$
|
11,285
|
$
|
11,158
|
$
|
10,951
|
$
|
11,006
|
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
|
||||||||||||||||||||
Key Financial Measures
|
||||||||||||||||||||
At or For the Quarter Ended
|
||||||||||||||||||||
Sep 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
||||||||||||||||
2017
|
2017
|
2017
|
2016
|
2016
|
||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||||||
Yields and Costs:
|
||||||||||||||||||||
Yield on loans
|
4.95
|
%
|
4.91
|
%
|
4.93
|
%
|
4.92
|
%
|
4.92
|
%
|
||||||||||
Yield on investments available-for-sale
|
2.59
|
2.69
|
2.66
|
2.49
|
2.36
|
|||||||||||||||
Yield on interest-earning deposits
|
1.27
|
1.00
|
0.74
|
0.59
|
0.53
|
|||||||||||||||
Yield on FHLB stock
|
2.91
|
2.89
|
4.14
|
2.57
|
2.10
|
|||||||||||||||
Yield on interest-earning assets
|
4.51
|
4.54
|
4.52
|
4.47
|
4.42
|
|||||||||||||||
Cost of deposits
|
1.05
|
1.03
|
1.00
|
0.97
|
0.95
|
|||||||||||||||
Cost of borrowings
|
1.40
|
1.24
|
1.05
|
0.83
|
0.79
|
|||||||||||||||
Cost of interest-bearing liabilities
|
1.13
|
1.07
|
1.01
|
0.94
|
0.91
|
|||||||||||||||
Average Balances:
|
||||||||||||||||||||
Loans receivable, net
|
$
|
879,075
|
$
|
844,853
|
$
|
825,251
|
$
|
845,276
|
$
|
804,014
|
||||||||||
Investments available-for-sale
|
132,959
|
132,375
|
128,993
|
132,077
|
133,258
|
|||||||||||||||
Interest-earning deposits with banks
|
33,854
|
16,831
|
24,233
|
25,082
|
28,275
|
|||||||||||||||
FHLB stock
|
9,126
|
8,616
|
8,034
|
10,205
|
8,483
|
|||||||||||||||
Total interest-earning assets
|
$
|
1,055,014
|
$
|
1,002,675
|
$
|
986,511
|
$
|
1,012,640
|
$
|
974,030
|
||||||||||
Deposits
|
$
|
727,702
|
$
|
692,922
|
$
|
688,298
|
$
|
664,416
|
$
|
646,658
|
||||||||||
Borrowings
|
197,098
|
184,357
|
171,500
|
225,848
|
182,804
|
|||||||||||||||
Total interest-bearing liabilities
|
$
|
924,800
|
$
|
877,279
|
$
|
859,798
|
$
|
890,264
|
$
|
829,462
|
||||||||||
Average assets
|
$
|
1,120,176
|
$
|
1,066,477
|
$
|
1,046,473
|
$
|
1,071,597
|
$
|
1,034,811
|
||||||||||
Average stockholders' equity
|
$
|
143,975
|
$
|
143,643
|
$
|
140,546
|
$
|
139,658
|
$
|
161,690
|