First Northwest Bancorp (Nasdaq: FNWB)
Q4 2022 Net Income |
Q4 2022 Diluted Earnings Per Share |
YTD Loan Growth |
Q4 2022 Net Interest Margin |
Book Value per Share |
$6.1 million |
$0.66 |
13.1% |
3.96% |
$16.31 |
$16.13*,excluding goodwill andintangibles |
|
|
|
|
|
CEO Commentary
“2022 was another good year for First Northwest with record
performance by the Bank, including return on equity, earnings per
share, and net interest margin expansion. We remain focused on
banking, including deposits and loans, through strategic hires,
partnerships such as Meriwether Group, and community investments,”
said Matthew P. Deines, President and CEO of First Northwest
Bancorp. “The strategic repositioning we began in 2020 continues in
the commercial bank while we invest and build technology solutions
and partnerships which will produce long-term shareholder
value.”
The Board of Directors of First Northwest Bancorp declared a
quarterly cash dividend of $0.07 per common share. The
dividend will be payable on February 24, 2023, to shareholders of
record as of the close of business on February 10, 2023.
Quarter Ended December 31, 2022 to September 30,
2022 |
Quarter Ended December 31, 2022 to December 31,
2021 |
Financial Highlights |
Net income of $6.1 million and diluted earnings per share
of $0.66, compared to $4.3 million and $0.47,
respectively |
Net income of $6.1 million and diluted earnings per share
of $0.66, compared to $5.1 million and $0.55,
respectively |
Total revenue (net interest income before provision plus
noninterest income) of $22.3 million, an increase of 8.6%,
or $1.8 million, compared to $20.5 million |
Total revenue of $22.3 million, an increase of 8.3%, or $1.7
million, compared to $20.6 million |
Effective tax rate of 14.7%, compared to 18.5% |
Effective tax rate of 14.7%, compared to 18.3% |
Financial Position |
|
Total assets of $2.04 billion, down $49.4 million,
or 2.4% |
Increase in total assets of $121.0 million, or 6.3% |
Total gross loans, excluding loans held for sale, of $1.53
billion, up $9.2 million, or 0.6% |
Increase in total gross loans, excluding loans held for
sale, of $177.2 million, or 13.1% |
Total deposits of $1.56 billion, a decrease of $41.0 million,
or 2.6% |
Decrease in total deposits of $16.3 million, or 1.0% |
Asset Quality and Capital |
|
Nonperforming assets (nonaccrual loans and repossessed assets) to
total assets of 0.09%, compared to 0.17% |
Nonperforming assets (nonaccrual loans and repossessed assets) to
total assets of 0.09%, compared to 0.07% |
Tangible common equity ratio* and equity to total assets of
7.67% and 7.75%, compared to 7.40% and 7.49%,
respectively |
Tangible common equity ratio* and equity to total assets of
7.67% and 7.75%, compared to 9.82% and 9.92%,
respectively |
Key Performance Metrics |
|
Net interest margin of 3.96%, compared to 3.88% |
Net interest margin of 3.96%, compared to 3.58% |
Efficiency ratio of 67.9%, compared to 74.9% |
Efficiency ratio of 67.9%, compared to 70.5% |
Annualized returns on average assets, tangible common equity* and
equity of 1.18%, 15.45% and 15.26%, compared
to 0.85%, 10.23%, and 10.12%, respectively |
Annualized returns on average assets, tangible common equity* and
equity of 1.18%, 15.45%, and 15.26%, compared
to 1.09%, 10.82% and 10.72%, respectively |
Tangible book value per share* of $16.13, an increase
of 4.07% from $15.50Book value per common share
of $16.31 compared to $15.69 |
Tangible book value per share* of $16.13, a decrease
of 14.7% from $18.89Book value per common share
of $16.31 compared to $19.10 |
* See reconciliation of Non-GAAP Financial Measures later
in this release.
Business Update
In December 2022, Quin Ventures, Inc. (“Quin”) sold certain
assets, including intellectual property, to Quil Ventures, Inc.
(“Quil”). Quil was created by the other 50% owners of Quin, in
partnership with a third-party financing source, to pursue a new
business model with another sponsor bank. As part of the
transaction, First Northwest received a 5% ownership stake in Quil
valued at $225,000. First Northwest retains a 50% ownership in
Quin and will also receive a portion of Quil’s monthly subscription
fee income, the value of which is reflected as a commitment
receivable under “Other Assets.” The fair value of the Quil
ownership stake and the commitment receivable were evaluated by a
third party with extensive experience in valuing bank assets and
liabilities.
For the quarter ended December 31, 2022, Quin reported a loss of
$396,000, 50% of which was recognized by the Company through
non-controlling interest accounting. For the year ended December
31, 2022, Quin reported a loss of $4.3 million, 50% of which was
recognized by the Company through non-controlling interest
accounting. The Company anticipates future expenses related to Quin
will be immaterial.
Balance Sheet Review
Total assets decreased $49.4 million, or 2.4%, to $2.04
billion at December 31, 2022, compared to $2.09 billion at
September 30, 2022, and increased $121.0 million, or 6.3%, compared
to $1.92 billion at December 31, 2021.
Cash and cash equivalents decreased by $58.1 million, or 56.0%,
to $45.6 million as of December 31, 2022, compared
to $103.7 million as of September 30, 2022, and
decreased $80.4 million, or 63.8%, compared to $126.0
million at December 31, 2021.
Investment securities decreased $2.9 million, or 0.9%,
to $326.6 million at December 31, 2022, compared
to $329.4 million three months earlier, and
decreased $17.6 million compared to $344.2 million at
December 31, 2021. The market value of the portfolio increased
$1.1 million during the fourth quarter of 2022, primarily
driven by lower long-term interest rates. Principal and interest
payments received of $6.9 million were primarily used to
fund loan growth. At December 31, 2022, municipal bonds totaled
$98.1 million and comprised the largest portion of the
investment portfolio at 30.0%. Non-agency issued mortgage-backed
securities were the second largest segment, totaling
$93.3 million, or 28.6%, of the portfolio at quarter
end. The estimated average life of the securities portfolio
was approximately 8.2 years, compared to 8.4 years
in the prior quarter and 5.7 years in the fourth quarter
of 2021. The effective duration of the portfolio was approximately
5.1 years, compared to 5.1 years in the prior quarter and
5.2 years in the fourth quarter of 2021.
Investment securities consisted of the following at the dates
indicated:
|
|
December 31,2022 |
|
|
September 30,2022 |
|
|
December 31,2021 |
|
|
Three MonthChange |
|
|
One YearChange |
|
|
|
(In thousands) |
|
Available for Sale at Fair Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal bonds |
|
$ |
98,050 |
|
|
$ |
96,130 |
|
|
$ |
113,364 |
|
|
$ |
1,920 |
|
|
$ |
(15,314 |
) |
U.S. Treasury notes |
|
|
2,364 |
|
|
|
2,355 |
|
|
|
— |
|
|
|
9 |
|
|
|
2,364 |
|
International agency issued
bonds (Agency bonds) |
|
|
1,702 |
|
|
|
1,683 |
|
|
|
1,920 |
|
|
|
19 |
|
|
|
(218 |
) |
Corporate issued asset-backed
securities (ABS corporate) |
|
|
— |
|
|
|
— |
|
|
|
14,489 |
|
|
|
— |
|
|
|
(14,489 |
) |
Corporate issued debt
securities (Corporate debt) |
|
|
55,499 |
|
|
|
56,165 |
|
|
|
59,789 |
|
|
|
(666 |
) |
|
|
(4,290 |
) |
U.S. Small Business
Administration securities (SBA) |
|
|
— |
|
|
|
— |
|
|
|
14,680 |
|
|
|
— |
|
|
|
(14,680 |
) |
Mortgage-backed
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government agency issued mortgage-backed securities (MBS
agency) |
|
|
75,648 |
|
|
|
78,231 |
|
|
|
79,962 |
|
|
|
(2,583 |
) |
|
|
(4,314 |
) |
Non-agency issued mortgage-backed securities (MBS non-agency) |
|
|
93,306 |
|
|
|
94,872 |
|
|
|
60,008 |
|
|
|
(1,566 |
) |
|
|
33,298 |
|
Total securities available for
sale |
|
$ |
326,569 |
|
|
$ |
329,436 |
|
|
$ |
344,212 |
|
|
$ |
(2,867 |
) |
|
$ |
(17,643 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans, excluding loans held for sale, increased $10.3
million, or 0.7%, to $1.53 billion at December 31, 2022,
from $1.52 billion at September 30, 2022, and increased $181.2
million, or 13.4%, from $1.35 billion one year ago. One-
to four-family loans increased $8.8 million during the
current quarter as a result of $8.9 million in new amortizing
loan originations and $14.0 million of residential
construction loans which converted to permanent amortizing loans,
partially offset by sales and payments received. Multi-family
loans increased $10.3 million during the current quarter. The
increase was the result of new originations totaling
$1.3 million and $5.5 million of construction loans
converting into permanent amortizing loans. Construction loans
decreased $22.5 million during the quarter, with $28.9 million
converting into fully amortizing loans, partially offset by
draws on new and existing loans. Commercial real estate, home
equity, and commercial business loans all increased during the
current quarter, compared to the previous quarter as originations
and draws on existing commitments exceeded payoffs and scheduled
payments.
The Company originated $8.6 million in residential
mortgages during the fourth quarter of 2022 and sold $3.3
million, with an average gross margin on sale of mortgage loans of
approximately 2.19%. This production compares to residential
mortgage originations of $19.4 million in the preceding
quarter with sales of $6.2 million, with an average gross margin of
2.10%. Higher market rates on mortgage loans and a lack of
single-family home inventory continued to hinder saleable mortgage
loan production in the fourth quarter. New single-family residence
construction loan commitments totaled $16.1 million in the
fourth quarter, compared to $26.9 million in the preceding
quarter.
Loans receivable consisted of the following at the
dates indicated:
|
|
December 31,2022 |
|
|
September 30,2022 |
|
|
December 31,2021 |
|
|
Three MonthChange |
|
|
One YearChange |
|
|
|
(In thousands) |
|
Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family |
|
$ |
343,825 |
|
|
$ |
335,067 |
|
|
$ |
294,965 |
|
|
$ |
8,758 |
|
|
$ |
48,860 |
|
Multi-family |
|
|
253,551 |
|
|
|
243,256 |
|
|
|
172,409 |
|
|
|
10,295 |
|
|
|
81,142 |
|
Commercial real estate |
|
|
390,246 |
|
|
|
385,272 |
|
|
|
363,299 |
|
|
|
4,974 |
|
|
|
26,947 |
|
Construction and land |
|
|
194,646 |
|
|
|
217,175 |
|
|
|
224,709 |
|
|
|
(22,529 |
) |
|
|
(30,063 |
) |
Total real estate loans |
|
|
1,182,268 |
|
|
|
1,180,770 |
|
|
|
1,055,382 |
|
|
|
1,498 |
|
|
|
126,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home equity |
|
|
52,322 |
|
|
|
50,066 |
|
|
|
39,172 |
|
|
|
2,256 |
|
|
|
13,150 |
|
Auto and other consumer |
|
|
222,794 |
|
|
|
223,100 |
|
|
|
182,769 |
|
|
|
(306 |
) |
|
|
40,025 |
|
Total consumer loans |
|
|
275,116 |
|
|
|
273,166 |
|
|
|
221,941 |
|
|
|
1,950 |
|
|
|
53,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
business |
|
|
76,996 |
|
|
|
71,269 |
|
|
|
79,838 |
|
|
|
5,727 |
|
|
|
(2,842 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
1,534,380 |
|
|
|
1,525,205 |
|
|
|
1,357,161 |
|
|
|
9,175 |
|
|
|
177,219 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred loan fees |
|
|
2,786 |
|
|
|
3,519 |
|
|
|
4,772 |
|
|
|
(733 |
) |
|
|
(1,986 |
) |
Premium on purchased loans, net |
|
|
(15,957 |
) |
|
|
(15,705 |
) |
|
|
(12,995 |
) |
|
|
(252 |
) |
|
|
(2,962 |
) |
Allowance for loan losses |
|
|
16,116 |
|
|
|
16,273 |
|
|
|
15,124 |
|
|
|
(157 |
) |
|
|
992 |
|
Total loans receivable, net |
|
$ |
1,531,435 |
|
|
$ |
1,521,118 |
|
|
$ |
1,350,260 |
|
|
$ |
10,317 |
|
|
$ |
181,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and partnership investments increased $299,000
to $14.3 million at December 31, 2022, compared
to $14.0 million at September 30, 2022, as we added an
investment in Quil Ventures as a result of the Quin asset sale, and
increased $10.7 million compared to $3.6
million one year ago, as we expanded partnership and
equity relationships to include Meriwether Group, JAM FINTOP and
Torpago. Prepaid expenses and other assets increased $3.9
million to $42.4 million at December 31, 2022,
compared to $38.5 million at September 30, 2022, and
increased $20.2 million compared to $22.2
million one year ago. The increase in the current quarter
is mainly due to a commitment receivable from the Quin assets sale
and a receivable for a bank-owned life insurance (“BOLI”) death
benefit payment related to the passing of a former employee. In
addition to the changes recorded during the current quarter, the
increase from a year ago also reflects an increase in other prepaid
expenses of $3.9 million, which includes long-term sponsorship
agreements with local not-for-profit organizations, and an
increase in deferred tax assets of $11.2 million
resulting from the fair market value decrease in the investment
portfolio.
Total deposits decreased $41.0 million, to $1.56 billion at
December 31, 2022, compared to $1.61 billion at September 30,
2022, and decreased $16.3 million, or 1.0%, compared to $1.58
billion one year ago. Increases in consumer certificates
of deposits (“CDs”) of $22.2 million, business savings
account balances of $12.2 million, and brokered CDs of
$4.3 million, were offset by decreases in consumer money
market account balances of $37.7 million, consumer demand
account balances of $17.7 million, business demand account balances
of $9.0 million, business money market account balances of
$8.3 million, consumer savings account balances of
$8.0 million, and public fund CDs of $647,000 during
the fourth quarter. Decreases in deposits were largely driven
by customers utilizing account balances as the cost of goods
increased. The current rate environment has contributed to greater
competition for deposits with more rate specials offered to attract
new funds. Some public entities moved funding out of CDs into
U.S. Treasury securities during the year.
Demand deposits decreased 6.0% compared to a year ago to
$508.6 million at December 31, 2022, and represented 32.5% of
total deposits; money market accounts decreased 20.9% compared to a
year ago to $473.0 million, and represented 30.2% of total
deposits; savings accounts increased 3.2% compared to a year ago to
$200.9 million at December 31, 2022, and represented 12.9% of
total deposits; and certificates of deposit increased 54.4%
compared to a year ago to $381.7 million at quarter-end, and
represented 24.4% of total deposits. Brokered CDs increased
$68.1 million to $133.8 million at December 31, 2022,
from $65.7 million a year ago, accounting for 50.7% of the increase
in CD balances.
The total cost of deposits increased to 0.62% for
the fourth quarter of 2022 compared to 0.32% for the
third quarter of 2022, and 0.20% for the fourth quarter of
2021 as the Bank increased rates in light of the current rate
environment and increased competition for deposits.
Deposits consisted of the following at the dates indicated:
|
|
December31, 2022 |
|
|
September30, 2022 |
|
|
December31, 2021 |
|
|
Three MonthChange |
|
|
One YearChange |
|
|
|
(In thousands) |
|
Noninterest-bearing demand deposits |
|
$ |
315,083 |
|
|
$ |
342,808 |
|
|
$ |
343,932 |
|
|
$ |
(27,725 |
) |
|
$ |
(28,849 |
) |
Interest-bearing demand
deposits |
|
|
193,558 |
|
|
|
192,504 |
|
|
|
196,970 |
|
|
|
1,054 |
|
|
|
(3,412 |
) |
Money market accounts |
|
|
473,009 |
|
|
|
519,018 |
|
|
|
597,815 |
|
|
|
(46,009 |
) |
|
|
(124,806 |
) |
Savings accounts |
|
|
200,920 |
|
|
|
196,780 |
|
|
|
194,620 |
|
|
|
4,140 |
|
|
|
6,300 |
|
Certificates of deposit |
|
|
381,685 |
|
|
|
354,125 |
|
|
|
247,243 |
|
|
|
27,560 |
|
|
|
134,442 |
|
Total deposits |
|
$ |
1,564,255 |
|
|
$ |
1,605,235 |
|
|
$ |
1,580,580 |
|
|
$ |
(40,980 |
) |
|
$ |
(16,325 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity increased to $158.3 million at
December 31, 2022, compared to $156.6 million three months
earlier, due to an increase in the fair market value of the
investment securities portfolio, net of
taxes, of $853,000, a $373,000 decrease in the fair
market value of the defined benefit plan, net of taxes, and
higher net income quarter-over-quarter, partially offset by the
cost of repurchased shares. Total shareholders’ equity decreased
from $190.5 million a year earlier, due to a decline in
the fair market value of the investment securities portfolio, net
of taxes, of $40.8 million. Bond values decreased across
the board as rates and credit spreads increased in response to
efforts by the Federal Reserve to address sustained
inflationary pressures.
Tangible book value per common
share* was $16.13 at December 31, 2022, compared
to $15.50 at September 30, 2022, and $18.89 at
December 31, 2021. Book value per common
share was $16.31 at December 31, 2022, compared
to $15.69 at September 30, 2022, and $19.10 at
December 31, 2021. We repurchased 224,671 shares of common
stock under the Company’s October 2020 stock repurchase plan at an
average price of $14.64 per share for a total of $3.3
million during the quarter ended December 31, 2022, leaving 302,027
shares remaining under the plan. Year-to-date, we
repurchased 356,343 shares of common stock at an average
price of $15.22 per share for a total of $5.4 million.
Income Statement Results
In the fourth quarter of 2022, the Company generated a return on
average assets (“ROAA”) of 1.18%, and a return on average equity
(“ROAE”) of 15.26%, compared to 0.85% and 10.12%,
respectively, in the third quarter of 2022, and 1.09%
and 10.72%, respectively, in the fourth quarter of 2021. Net
income increased $1.8 million to $6.1 million over the
prior quarter and $936,000 over the comparable quarter in
2021. Net interest income continues to increase with the
growth in the loan portfolio as well as higher loan and investment
yields despite higher funding costs. Noninterest income improved
over the prior quarter as the Bank recorded a BOLI death benefit
payment related to the passing of a former employee; however,
noninterest income remains significantly down from the same quarter
one year ago with declines in gain on sale of loans and gains on
partnership investments. Noninterest expense decreased from the
prior quarter but continues to be higher than the same quarter
one year ago. As a result, the efficiency ratio improved
to 67.9% for the fourth quarter of 2022, compared to
74.9% for the third quarter of 2022, and 70.5% the
fourth quarter of 2021.
The Company generated a ROAA of 0.79%, and an ROAE of
9.09%, for the year ended December 31, 2022, compared to 0.87%
and 8.19%, respectively, for the year ended December 31, 2021. Net
income increased $227,000, or 1.5%, compared to 2021. An
increase in net interest income was offset by a decrease in
noninterest income and increase in noninterest expense. Noninterest
income was down due to significant declines in gain on sale of
loans and gains on partnership investments. Noninterest expense was
higher due to increased compensation, advertising, data processing,
and occupancy expenses. The increases in expense were primarily
related to Quin and expansion of the Bank’s staffing levels and
locations.
Total interest income increased $2.8 million to $23.7
million for the fourth quarter of 2022, compared to $20.9
million in the previous quarter, and increased $6.5 million
from $17.2 million in the fourth quarter of 2021. Interest and
fees on loans increased during the quarter, in part, as the
Bank grew the loan portfolio through single-family,
multi-family and commercial real estate lending as well as
purchased auto and manufactured home loans. Loan yields also
increased due to higher rates on new originations as well as the
repricing of variable rate loans tied to the Prime Rate or other
indices. The Bank also recorded higher deferred fee income from
loan payoffs during the fourth quarter of 2022. Total interest
expense was $4.7 million for the fourth quarter of 2022,
compared to $2.7 million in the third quarter of
2022 and $1.4 million in the fourth quarter a year
ago. The increase was the result of a higher volume of short-term
FHLB advances that are more sensitive to Federal Reserve Bank and
other market rate increases along with a 30 basis
point increase in the cost of deposits to
0.62% at December 31, 2022, from 0.32% at the
prior quarter end and 42 basis point increase
from 0.20% one year prior.
Total interest income for the year ended December 31, 2022,
increased $16.7 million to $80.4 million, compared
to $63.7 million for the year ended December 31, 2021. Total
interest expense increased $5.1 million for the year ended December
31, 2022, to $10.5 million, compared to $5.4 million for the year
ended December 31, 2021. Both categories were impacted by higher
interest rates.
Net interest income, before provision for loan losses, for
the fourth quarter of 2022 increased 4.0% to
$18.9 million, compared to $18.2 million for the preceding
quarter, and increased 19.7% from the fourth quarter
one year ago. Net interest income, before provision for loan
losses, for the year ended December 31, 2022, increased $11.6
million to $69.9 million, compared to $58.3 million for
the year ended December 31, 2021.
The Company recorded a $285,000 provision for loan loss
during the fourth quarter of 2022. This compares to a loan loss
provision of $750,000 for the preceding quarter and a
recovery of $150,000 for the fourth quarter of 2021. The
current provision reflects lower loan growth, stable credit
quality metrics and improvement in nonperforming assets. The loan
loss provision for the year ended December 31, 2022, was $1.5
million, compared to $1.4 million for the year ended December
31, 2021.
* See reconciliation of Non-GAAP Financial Measures later
in this release.
The net interest margin increased 8 basis points
to 3.96% for the fourth quarter of 2022, from 3.88% the
prior quarter, and increased 38 basis points over the
fourth quarter of 2021 of 3.58%. Increases over both the
prior quarter and the prior year are primarily due to an
improvement in our earning asset mix, as well as higher
coupon rates for both fixed and variable rate assets and an
increase in loan prepayment fee income. The net interest margin
increased 28 basis points to 3.79% for the year
ended December 31, 2022, and from 3.51% for the year
ended December 31, 2021.
The yield on average earning assets increased 50 basis
points to 4.95% for the fourth quarter of 2022, compared
to 4.45% for the third quarter of 2022, and
increased 105 basis points from 3.90% for the
fourth quarter of 2021. The increase over the prior quarter was due
to higher yields on the investment portfolio along with higher
average loan balances and an increase in the loan portfolio yield
to 5.22% for the fourth quarter of 2022, compared
to 4.75% for the third quarter of 2022, reflective of the
rising rate environment. The year-over-year increase was primarily
due to higher average loan balances augmented by increases in
yields, which were positively impacted by the rising rate
environment and overall improvements in the mix of interest-earning
assets.
The yield on average earning assets increased 53 basis
points to 4.36% for the year ended December 31, 2022,
from 3.83% for the year ended December 31, 2021.
The cost of average interest-bearing liabilities
increased 51 basis points to 1.24% for the
fourth quarter of 2022, compared to 0.73% for the third
quarter of 2022, and increased 82 basis points
from 0.42% for the fourth quarter of 2021. Total
cost of funds increased 43 basis points to 1.02% for
the fourth quarter of 2022 from 0.59% in the prior
quarter and increased 68 basis points
from 0.34% for the fourth quarter of 2021. Current
quarter increases were due to higher costs on interest-bearing
deposits and advances in addition to an increase in average FHLB
advance balances. The increase over the same quarter last year was
driven by the same factors.
The cost of average interest-bearing liabilities
increased 30 basis points to 0.73% for the
year ended December 31, 2022, from 0.43% for
the year ended December 31, 2021. The total cost of funds
increased 25 basis points to 0.60% for the year
ended December 31, 2022, from 0.35% for the year ended
December 31, 2021.
Noninterest income increased 44.3% to $3.4 million for
the fourth quarter of 2022 from $2.3 million for
the third quarter of 2022 and decreased 29.5%
compared to $4.8 million for the fourth quarter a year
ago. The Bank recorded a $1.5 million BOLI death benefit payment
related to the passing of a former employee which was partially
offset by decreases during the fourth quarter of 2022 in
service fee income and gain on sale of loans. Decreases compared to
the fourth quarter of 2021 were primarily due to lower market gains
on sale of loans and lower gains on the value of our limited
partnership fintech investments.
Noninterest income decreased 34.0% to $10.3 million
for the year ended December 31, 2022, from $15.6 million for
the year ended December 31, 2021. Decreases compared to the
prior year were primarily due to lower gain on sale of mortgage
loans, lower gains on investment security sales, a decrease in
the value of our limited partnership fintech investments, and a
decline in the value of the loan servicing rights asset, partially
offset by additional service fee income and the BOLI death benefit
payment.
Noninterest expense totaled $15.1 million for the fourth
quarter of 2022, compared to $15.4 million for the preceding
quarter and $14.7 million for the fourth quarter a year ago.
The decrease from the prior quarter is mainly related to reduced
Quin compensation. The increase over the fourth quarter
of 2021 reflects increases in data processing and occupancy
expenses associated with expanding our footprint with additional
branch locations as well as higher professional fees, including
legal and technology consulting fees.
Noninterest expense increased 14.5% to $62.3 million
for the year ended December 31, 2022, from $54.4 million for
the year ended December 31, 2021. Additional Quin expenses
resulted in significant increases to advertising, compensation,
depreciation and data processing expenses during the year
ended December 31, 2022, totaling approximately $3.5 million. As of
December 31, 2022, future additional expenses related to Quin are
expected to be immaterial.
The provision for income tax increased to $1.0 million for
the fourth quarter of 2022, compared to $818,000 for
the third quarter of 2022 and $1.1 million for the fourth
quarter of 2021, reflecting differences in pre-tax income. The
provision for income tax decreased to $2.9 million for the
year ended December 31, 2022, compared to $3.2 million for
the year ended December 31, 2021. The effective tax rate
decreased over prior periods as a result of the permanent tax
exclusion of BOLI noninterest income, including the BOLI death
benefit.
Capital Ratios and Credit Quality
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 December 31,
2022. Common Equity Tier 1 and Total Risk-Based Capital Ratios at
December 31, 2022, were 13.4% and 14.4%,
respectively.
Nonperforming loans were $1.8 million at December 31, 2022,
a decrease of $1.7 million from September 30, 2022,
which was related to the payoff of one speculative single-family
home construction project. A small improvement in mortgage
loans was offset by increases in nonperforming consumer loans. The
percentage of the allowance for loan losses to nonperforming loans
increased to 900% at December 31, 2022,
from 463% at September 30, 2022, and decreased
from 1095% at December 31, 2021. Classified loans
increased $5.2 million to $16.9 million at December 31,
2022, as one $14.0 million commercial multifamily
construction loan was downgraded during the fourth
quarter due to additional liens being placed on the property. The
allowance for loan losses as a percentage of total loans
was 1.05% at December 31, 2022, decreasing
from 1.07% at the prior quarter end and decreasing
from 1.11% reported one year earlier.
Awards/Recognition
The Company has received several accolades as a leader in the
community.
In April 2022, First Fed was recognized as a Top Corporate
Citizen by the Puget Sound Business Journal. The Corporate
Citizenship Awards honors local corporate philanthropists and
companies making significant contributions in the region. The top
25 small, medium and large-sized companies were recognized in
addition to nine other honorees last year. First Fed was ranked
#3 in the medium-sized company category in 2022 and was ranked
#4 in the same category in 2021.
In June 2022, First Fed was named to the Middle Market Fast 50
List by the Puget Sound Business Journal. First Fed also made the
Fast 50 list for 2020 and 2021, which recognizes the region’s
fastest-growing middle market companies.
Additionally, in June 2022 First Fed was named on the Puget
Sound Business Journal’s Best Workplaces list. First Fed has been
recognized as one the top 100 workplaces in Washington, as
voted for two years in row by each company’s own
employees.
In September 2022, 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.
In October 2022, First Fed was also recognized in the Best of
the Peninsula surveys, winning Best Bank for both Clallam and
Jefferson counties. The Bank was a finalist for Best Bank on
Bainbridge Island and Central Kitsap. Also, First Fed received
Best Financial Advisor in Jefferson.
About the Company
First Northwest Bancorp (Nasdaq: FNWB) is a financial holding
company engaged in investment activities including the business
activity of its subsidiary, First Fed Bank, along with other
fintech partnerships. First Fed is a small business-focused
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 business, and commercial customers.
Additionally, First Fed focuses on strategic partnerships with
financial technology (“fintech”) companies to develop and deploy
digitally focused financial solutions to meet customers’ needs on a
broader scale. FNWB also invests in fintech companies directly as
well as through select venture capital partners. In 2022, the
Company made a minority investment in Meriwether Group, a boutique
investment banking and accelerator firm. In 2021, the Company
entered a joint venture to found Quin Ventures, Inc., a fintech
focused on financial wellness and lifestyle protection for
consumers nationwide. Other fintech partnership initiatives include
banking-as-a-service, digital payments and marketplace lending.
First Northwest Bancorp was incorporated in 2012. The Company
completed its initial public offering in 2015 under the ticker
symbol FNWB and is headquartered in Port Angeles,
Washington.
Forward-Looking Statements
Certain matters discussed in this press release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to, among other things, expectations of the
business environment in which we operate, projections of future
performance, perceived opportunities in the market, potential
future credit experience, and statements regarding our mission and
vision. These forward-looking statements are based upon current
management expectations and may, therefore, involve risks and
uncertainties. 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; changes in general economic conditions and
conditions within the securities markets; legislative and
regulatory changes; and other factors described in the Company’s
latest Annual Report on Form 10-K 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 2023 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.
FIRST NORTHWEST BANCORP AND
SUBSIDIARYCONSOLIDATED BALANCE SHEETS(Dollars in
thousands, except share data) (Unaudited)
|
|
December 31,2022 |
|
|
September 30 2022 |
|
|
December 31,2021 |
|
|
Three MonthChange |
|
|
One YearChange |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
17,104 |
|
|
$ |
22,784 |
|
|
$ |
13,868 |
|
|
|
-24.9 |
% |
|
|
23.3 |
% |
Interest-earning deposits in
banks |
|
|
28,492 |
|
|
|
80,879 |
|
|
|
112,148 |
|
|
|
-64.8 |
|
|
|
-74.6 |
|
Investment securities
available for sale, at fair value |
|
|
326,569 |
|
|
|
329,436 |
|
|
|
344,212 |
|
|
|
-0.9 |
|
|
|
-5.1 |
|
Loans held for sale |
|
|
597 |
|
|
|
263 |
|
|
|
760 |
|
|
|
127.0 |
|
|
|
-21.4 |
|
Loans receivable (net of
allowance for loan losses of $16,116, $16,273, and $15,124) |
|
|
1,531,435 |
|
|
|
1,521,118 |
|
|
|
1,350,260 |
|
|
|
0.7 |
|
|
|
13.4 |
|
Federal Home Loan Bank (FHLB)
stock, at cost |
|
|
11,681 |
|
|
|
11,961 |
|
|
|
5,196 |
|
|
|
-2.3 |
|
|
|
124.8 |
|
Accrued interest
receivable |
|
|
6,743 |
|
|
|
6,655 |
|
|
|
5,289 |
|
|
|
1.3 |
|
|
|
27.5 |
|
Premises and equipment,
net |
|
|
18,089 |
|
|
|
20,841 |
|
|
|
19,830 |
|
|
|
-13.2 |
|
|
|
-8.8 |
|
Servicing rights on sold
loans, net |
|
|
— |
|
|
|
— |
|
|
|
3,282 |
|
|
|
n/a |
|
|
|
-100.0 |
|
Servicing rights on sold
loans, at fair value |
|
|
3,887 |
|
|
|
3,872 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
100.0 |
|
Bank-owned life insurance,
net |
|
|
39,665 |
|
|
|
40,003 |
|
|
|
39,318 |
|
|
|
-0.8 |
|
|
|
0.9 |
|
Equity and partnership
investments |
|
|
14,289 |
|
|
|
13,990 |
|
|
|
3,571 |
|
|
|
2.1 |
|
|
|
300.1 |
|
Goodwill and other intangible
assets, net |
|
|
1,089 |
|
|
|
1,173 |
|
|
|
1,183 |
|
|
|
-7.2 |
|
|
|
-7.9 |
|
Prepaid expenses and other
assets |
|
|
42,430 |
|
|
|
38,466 |
|
|
|
22,164 |
|
|
|
10.3 |
|
|
|
91.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,042,070 |
|
|
$ |
2,091,441 |
|
|
$ |
1,921,081 |
|
|
|
-2.4 |
% |
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
1,564,255 |
|
|
$ |
1,605,235 |
|
|
$ |
1,580,580 |
|
|
|
-2.6 |
% |
|
|
-1.0 |
% |
Borrowings |
|
|
285,358 |
|
|
|
292,338 |
|
|
|
119,280 |
|
|
|
-2.4 |
|
|
|
139.2 |
|
Accrued interest payable |
|
|
455 |
|
|
|
105 |
|
|
|
393 |
|
|
|
333.3 |
|
|
|
15.8 |
|
Accrued expenses and other
liabilities |
|
|
32,344 |
|
|
|
34,940 |
|
|
|
29,240 |
|
|
|
-7.4 |
|
|
|
10.6 |
|
Advances from borrowers for
taxes and insurance |
|
|
1,376 |
|
|
|
2,224 |
|
|
|
1,108 |
|
|
|
-38.1 |
|
|
|
24.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,883,788 |
|
|
|
1,934,842 |
|
|
|
1,730,601 |
|
|
|
-2.6 |
|
|
|
8.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, authorized 5,000,000 shares, no
shares issued or outstanding |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
n/a |
|
|
|
n/a |
|
Common stock, $0.01 par value, authorized 75,000,000 shares; issued
and outstanding 9,703,581 at December 31, 2022; issued and
outstanding 9,978,041 at September 30, 2022; and issued and
outstanding 9,972,698 at December 31, 2021 |
|
|
97 |
|
|
|
100 |
|
|
|
100 |
|
|
|
-3.0 |
|
|
|
-3.0 |
|
Additional paid-in capital |
|
|
95,508 |
|
|
|
97,924 |
|
|
|
96,132 |
|
|
|
-2.5 |
|
|
|
-0.6 |
|
Retained earnings |
|
|
114,424 |
|
|
|
110,107 |
|
|
|
103,013 |
|
|
|
3.9 |
|
|
|
11.1 |
|
Accumulated other comprehensive (loss) income, net of tax |
|
|
(40,543 |
) |
|
|
(41,023 |
) |
|
|
288 |
|
|
|
1.2 |
|
|
|
-14,177.4 |
|
Unearned employee stock ownership plan (ESOP) shares |
|
|
(7,913 |
) |
|
|
(8,077 |
) |
|
|
(8,572 |
) |
|
|
2.0 |
|
|
|
7.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total parent’s shareholders’ equity |
|
|
161,573 |
|
|
|
159,031 |
|
|
|
190,961 |
|
|
|
1.6 |
|
|
|
-15.4 |
|
Noncontrolling interest in Quin Ventures, Inc. |
|
|
(3,291 |
) |
|
|
(2,432 |
) |
|
|
(481 |
) |
|
|
-35.3 |
|
|
|
-584.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
|
158,282 |
|
|
|
156,599 |
|
|
|
190,480 |
|
|
|
1.1 |
|
|
|
-16.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,042,070 |
|
|
$ |
2,091,441 |
|
|
$ |
1,921,081 |
|
|
|
-2.4 |
% |
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST NORTHWEST BANCORP AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF INCOME(Dollars in
thousands, except per share data) (Unaudited)
|
|
Quarter Ended |
|
|
|
|
|
|
|
|
|
|
|
December 31,2022 |
|
|
September 30,2022 |
|
|
December 31,2021 |
|
|
Three MonthChange |
|
|
One YearChange |
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans receivable |
|
$ |
20,240 |
|
|
$ |
17,778 |
|
|
$ |
15,041 |
|
|
|
13.8 |
% |
|
|
34.6 |
% |
Interest on investment securities |
|
|
3,059 |
|
|
|
2,817 |
|
|
|
2,073 |
|
|
|
8.6 |
|
|
|
47.6 |
|
Interest on deposits in banks |
|
|
173 |
|
|
|
118 |
|
|
|
37 |
|
|
|
46.6 |
|
|
|
367.6 |
|
FHLB dividends |
|
|
189 |
|
|
|
142 |
|
|
|
58 |
|
|
|
33.1 |
|
|
|
225.9 |
|
Total interest income |
|
|
23,661 |
|
|
|
20,855 |
|
|
|
17,209 |
|
|
|
13.5 |
|
|
|
37.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
2,434 |
|
|
|
1,251 |
|
|
|
787 |
|
|
|
94.6 |
|
|
|
209.3 |
|
Borrowings |
|
|
2,297 |
|
|
|
1,400 |
|
|
|
608 |
|
|
|
64.1 |
|
|
|
277.8 |
|
Total interest expense |
|
|
4,731 |
|
|
|
2,651 |
|
|
|
1,395 |
|
|
|
78.5 |
|
|
|
239.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
18,930 |
|
|
|
18,204 |
|
|
|
15,814 |
|
|
|
4.0 |
|
|
|
19.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR (RECAPTURE OF)
LOAN LOSSES |
|
|
285 |
|
|
|
750 |
|
|
|
(150 |
) |
|
|
-62.0 |
|
|
|
290.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after
provision for loan losses |
|
|
18,645 |
|
|
|
17,454 |
|
|
|
15,964 |
|
|
|
6.8 |
|
|
|
16.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and deposit service fees |
|
|
1,163 |
|
|
|
1,302 |
|
|
|
1,007 |
|
|
|
-10.7 |
|
|
|
15.5 |
|
Sold loan servicing fees |
|
|
202 |
|
|
|
206 |
|
|
|
88 |
|
|
|
-1.9 |
|
|
|
129.5 |
|
Net gain on sale of loans |
|
|
55 |
|
|
|
285 |
|
|
|
2,264 |
|
|
|
-80.7 |
|
|
|
-97.6 |
|
Increase in cash surrender value of bank-owned life insurance |
|
|
230 |
|
|
|
221 |
|
|
|
238 |
|
|
|
4.1 |
|
|
|
-3.4 |
|
Income from death benefit on bank-owned life insurance, net |
|
|
1,489 |
|
|
|
— |
|
|
|
— |
|
|
|
100.0 |
|
|
|
100.0 |
|
Other income |
|
|
229 |
|
|
|
320 |
|
|
|
1,179 |
|
|
|
-28.4 |
|
|
|
-80.6 |
|
Total noninterest income |
|
|
3,368 |
|
|
|
2,334 |
|
|
|
4,776 |
|
|
|
44.3 |
|
|
|
-29.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
8,357 |
|
|
|
9,045 |
|
|
|
8,948 |
|
|
|
-7.6 |
|
|
|
-6.6 |
|
Data processing |
|
|
2,119 |
|
|
|
1,778 |
|
|
|
1,818 |
|
|
|
19.2 |
|
|
|
16.6 |
|
Occupancy and equipment |
|
|
1,300 |
|
|
|
1,499 |
|
|
|
1,173 |
|
|
|
-13.3 |
|
|
|
10.8 |
|
Supplies, postage, and telephone |
|
|
333 |
|
|
|
322 |
|
|
|
313 |
|
|
|
3.4 |
|
|
|
6.4 |
|
Regulatory assessments and state taxes |
|
|
372 |
|
|
|
365 |
|
|
|
316 |
|
|
|
1.9 |
|
|
|
17.7 |
|
Advertising |
|
|
486 |
|
|
|
645 |
|
|
|
556 |
|
|
|
-24.7 |
|
|
|
-12.6 |
|
Professional fees |
|
|
762 |
|
|
|
695 |
|
|
|
409 |
|
|
|
9.6 |
|
|
|
86.3 |
|
FDIC insurance premium |
|
|
235 |
|
|
|
219 |
|
|
|
302 |
|
|
|
7.3 |
|
|
|
-22.2 |
|
Other |
|
|
1,179 |
|
|
|
807 |
|
|
|
843 |
|
|
|
46.1 |
|
|
|
39.9 |
|
Total noninterest expense |
|
|
15,143 |
|
|
|
15,375 |
|
|
|
14,678 |
|
|
|
-1.5 |
|
|
|
3.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE PROVISION FOR
INCOME TAXES |
|
|
6,870 |
|
|
|
4,413 |
|
|
|
6,062 |
|
|
|
55.7 |
|
|
|
13.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES |
|
|
1,008 |
|
|
|
818 |
|
|
|
1,112 |
|
|
|
23.2 |
|
|
|
-9.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
5,862 |
|
|
|
3,595 |
|
|
|
4,950 |
|
|
|
63.1 |
|
|
|
18.4 |
|
Net loss attributable to
noncontrolling interest in Quin Ventures, Inc. |
|
|
198 |
|
|
|
696 |
|
|
|
174 |
|
|
|
-71.6 |
|
|
|
13.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO
PARENT |
|
$ |
6,060 |
|
|
$ |
4,291 |
|
|
$ |
5,124 |
|
|
|
41.2 |
% |
|
|
18.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per
common share |
|
$ |
0.66 |
|
|
$ |
0.47 |
|
|
$ |
0.55 |
|
|
|
40.4 |
% |
|
|
20.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST NORTHWEST BANCORP AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF INCOME(Dollars in
thousands, except per share data) (Unaudited)
|
|
Year Ended December 31, |
|
|
Percent |
|
|
|
2022 |
|
|
2021 |
|
|
Change |
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans receivable |
|
$ |
68,635 |
|
|
$ |
55,029 |
|
|
|
24.7 |
% |
Interest on investment securities |
|
|
10,866 |
|
|
|
8,369 |
|
|
|
29.8 |
|
Interest on deposits in banks |
|
|
375 |
|
|
|
83 |
|
|
|
351.8 |
|
FHLB dividends |
|
|
502 |
|
|
|
190 |
|
|
|
164.2 |
|
Total interest income |
|
|
80,378 |
|
|
|
63,671 |
|
|
|
26.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
5,198 |
|
|
|
3,396 |
|
|
|
53.1 |
|
Borrowings |
|
|
5,317 |
|
|
|
1,977 |
|
|
|
168.9 |
|
Total interest expense |
|
|
10,515 |
|
|
|
5,373 |
|
|
|
95.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
69,863 |
|
|
|
58,298 |
|
|
|
19.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR LOAN LOSSES |
|
|
1,535 |
|
|
|
1,350 |
|
|
|
13.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after
provision for loan losses |
|
|
68,328 |
|
|
|
56,948 |
|
|
|
20.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Loan and deposit service fees |
|
|
4,729 |
|
|
|
3,860 |
|
|
|
22.5 |
|
Sold loan servicing fees |
|
|
867 |
|
|
|
946 |
|
|
|
-8.4 |
|
Net gain on sale of loans |
|
|
824 |
|
|
|
5,278 |
|
|
|
-84.4 |
|
Net gain on sale of investment securities |
|
|
118 |
|
|
|
2,410 |
|
|
|
-95.1 |
|
Increase in cash surrender value of bank-owned life insurance |
|
|
916 |
|
|
|
965 |
|
|
|
-5.1 |
|
Income from death benefit on bank-owned life insurance, net |
|
|
1,489 |
|
|
|
— |
|
|
|
100.0 |
|
Other income |
|
|
1,384 |
|
|
|
2,179 |
|
|
|
-36.5 |
|
Total noninterest income |
|
|
10,327 |
|
|
|
15,638 |
|
|
|
-34.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
35,940 |
|
|
|
33,515 |
|
|
|
7.2 |
|
Data processing |
|
|
7,539 |
|
|
|
6,244 |
|
|
|
20.7 |
|
Occupancy and equipment |
|
|
5,398 |
|
|
|
4,312 |
|
|
|
25.2 |
|
Supplies, postage, and telephone |
|
|
1,376 |
|
|
|
1,189 |
|
|
|
15.7 |
|
Regulatory assessments and state taxes |
|
|
1,539 |
|
|
|
1,213 |
|
|
|
26.9 |
|
Advertising |
|
|
3,288 |
|
|
|
2,040 |
|
|
|
61.2 |
|
Professional fees |
|
|
2,645 |
|
|
|
1,997 |
|
|
|
32.4 |
|
FDIC insurance premium |
|
|
888 |
|
|
|
752 |
|
|
|
18.1 |
|
Other |
|
|
3,699 |
|
|
|
3,151 |
|
|
|
17.4 |
|
Total noninterest expense |
|
|
62,312 |
|
|
|
54,413 |
|
|
|
14.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE PROVISION FOR
INCOME TAXES |
|
|
16,343 |
|
|
|
18,173 |
|
|
|
-10.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES |
|
|
2,847 |
|
|
|
3,194 |
|
|
|
-10.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
13,496 |
|
|
|
14,979 |
|
|
|
-9.9 |
|
Net loss attributable to
noncontrolling interest in Quin Ventures, Inc. |
|
|
2,149 |
|
|
|
439 |
|
|
|
389.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO
PARENT |
|
$ |
15,645 |
|
|
$ |
15,418 |
|
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per
common share |
|
$ |
1.71 |
|
|
$ |
1.63 |
|
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST NORTHWEST BANCORP AND
SUBSIDIARYSelected Financial Ratios and Other Data(Dollars
in thousands, except per share data) (Unaudited)
|
|
As of or For the Quarter Ended |
|
|
|
December 31,2022 |
|
|
September 30,2022 |
|
|
June 30,2022 |
|
|
March 31,2022 |
|
|
December 31,2021 |
|
Performance ratios: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.18 |
% |
|
|
0.85 |
% |
|
|
0.51 |
% |
|
|
0.60 |
% |
|
|
1.09 |
% |
Return on average equity |
|
|
15.26 |
|
|
|
10.12 |
|
|
|
5.75 |
|
|
|
6.01 |
|
|
|
10.72 |
|
Average interest rate
spread |
|
|
3.72 |
|
|
|
3.72 |
|
|
|
3.65 |
|
|
|
3.43 |
|
|
|
3.48 |
|
Net interest margin (2) |
|
|
3.96 |
|
|
|
3.88 |
|
|
|
3.77 |
|
|
|
3.53 |
|
|
|
3.58 |
|
Efficiency ratio (3) |
|
|
67.9 |
|
|
|
74.9 |
|
|
|
87.2 |
|
|
|
82.9 |
|
|
|
70.5 |
|
Equity to total assets |
|
|
7.75 |
|
|
|
7.49 |
|
|
|
8.13 |
|
|
|
9.14 |
|
|
|
9.92 |
|
Average interest-earning
assets to average interest-bearing liabilities |
|
|
124.8 |
|
|
|
128.6 |
|
|
|
130.0 |
|
|
|
132.3 |
|
|
|
133.8 |
|
Book value per common
share |
|
$ |
16.31 |
|
|
$ |
15.69 |
|
|
$ |
16.60 |
|
|
$ |
17.77 |
|
|
$ |
19.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible performance
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets (4) |
|
$ |
2,040,267 |
|
|
$ |
2,089,454 |
|
|
$ |
2,029,702 |
|
|
$ |
1,942,151 |
|
|
$ |
1,919,028 |
|
Tangible common equity
(4) |
|
|
156,479 |
|
|
|
154,612 |
|
|
|
163,224 |
|
|
|
175,645 |
|
|
|
188,427 |
|
Tangible common equity ratio
(4) |
|
|
7.67 |
% |
|
|
7.40 |
% |
|
|
8.04 |
% |
|
|
9.04 |
% |
|
|
9.82 |
% |
Return on tangible common
equity (4) |
|
|
15.45 |
|
|
|
10.23 |
|
|
|
5.82 |
|
|
|
6.09 |
|
|
|
10.82 |
|
Tangible book value per common
share (4) |
|
$ |
16.13 |
|
|
$ |
15.50 |
|
|
$ |
16.40 |
|
|
$ |
17.56 |
|
|
$ |
18.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total
assets at end of period (5) |
|
|
0.09 |
% |
|
|
0.17 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.07 |
% |
Nonperforming loans to total
loans (6) |
|
|
0.12 |
|
|
|
0.23 |
|
|
|
0.08 |
|
|
|
0.09 |
|
|
|
0.10 |
|
Allowance for loan losses to
nonperforming loans (6) |
|
|
900.34 |
|
|
|
462.70 |
|
|
|
1268.90 |
|
|
|
1226.85 |
|
|
|
1095.15 |
|
Allowance for loan losses to
total loans |
|
|
1.05 |
|
|
|
1.07 |
|
|
|
1.07 |
|
|
|
1.10 |
|
|
|
1.11 |
|
Annualized net charge-offs
(recoveries) to average outstanding loans |
|
|
0.11 |
|
|
|
0.06 |
|
|
|
(0.03 |
) |
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios (First
Fed Bank): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
|
|
10.4 |
% |
|
|
10.5 |
% |
|
|
10.4 |
% |
|
|
10.6 |
% |
|
|
10.6 |
% |
Common equity Tier 1
capital |
|
|
13.4 |
|
|
|
13.1 |
|
|
|
13.2 |
|
|
|
13.7 |
|
|
|
13.8 |
|
Tier 1 risk-based |
|
|
13.4 |
|
|
|
13.1 |
|
|
|
13.2 |
|
|
|
13.7 |
|
|
|
13.8 |
|
Total risk-based |
|
|
14.4 |
|
|
|
14.2 |
|
|
|
14.2 |
|
|
|
14.7 |
|
|
|
14.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total assets |
|
$ |
2,039,016 |
|
|
$ |
1,996,765 |
|
|
$ |
1,963,665 |
|
|
$ |
1,899,717 |
|
|
$ |
1,864,309 |
|
Average total loans |
|
|
1,541,850 |
|
|
|
1,488,194 |
|
|
|
1,443,760 |
|
|
|
1,336,175 |
|
|
|
1,336,937 |
|
Average interest-earning
assets |
|
|
1,895,799 |
|
|
|
1,859,396 |
|
|
|
1,836,202 |
|
|
|
1,777,704 |
|
|
|
1,750,355 |
|
Average noninterest-bearing
deposits |
|
|
326,450 |
|
|
|
342,944 |
|
|
|
344,827 |
|
|
|
328,304 |
|
|
|
330,913 |
|
Average interest-bearing
deposits |
|
|
1,243,185 |
|
|
|
1,224,548 |
|
|
|
1,223,888 |
|
|
|
1,221,323 |
|
|
|
1,211,453 |
|
Average interest-bearing
liabilities |
|
|
1,519,106 |
|
|
|
1,446,428 |
|
|
|
1,412,327 |
|
|
|
1,343,216 |
|
|
|
1,307,895 |
|
Average equity |
|
|
157,590 |
|
|
|
168,264 |
|
|
|
173,584 |
|
|
|
189,455 |
|
|
|
189,706 |
|
Average shares –
basic |
|
|
9,069,493 |
|
|
|
9,093,821 |
|
|
|
9,094,894 |
|
|
|
9,130,168 |
|
|
|
9,103,640 |
|
Average shares –
diluted |
|
|
9,106,453 |
|
|
|
9,138,123 |
|
|
|
9,166,131 |
|
|
|
9,225,368 |
|
|
|
9,189,252 |
|
(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
SUBSIDIARYSelected Financial Ratios and Other Data(Dollars
in thousands, except per share data) (Unaudited)
|
|
As of or For the Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
Performance ratios: |
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.79 |
% |
|
|
0.87 |
% |
Return on average equity |
|
|
9.09 |
|
|
|
8.19 |
|
Average interest rate
spread |
|
|
3.63 |
|
|
|
3.40 |
|
Net interest margin (1) |
|
|
3.79 |
|
|
|
3.51 |
|
Efficiency ratio (2) |
|
|
77.7 |
|
|
|
73.6 |
|
Equity to total assets |
|
|
7.75 |
|
|
|
9.92 |
|
Average interest-earning
assets to average interest-bearing liabilities |
|
|
128.8 |
|
|
|
134.1 |
|
Book value per common
share |
|
$ |
16.31 |
|
|
$ |
19.10 |
|
|
|
|
|
|
|
|
|
|
Tangible performance
ratios: |
|
|
|
|
|
|
|
|
Tangible assets (3) |
|
$ |
2,040,267 |
|
|
$ |
1,919,028 |
|
Tangible common equity
(3) |
|
|
156,479 |
|
|
|
188,427 |
|
Tangible common equity ratio
(3) |
|
|
7.67 |
% |
|
|
9.82 |
% |
Return on tangible common
equity (3) |
|
|
9.20 |
|
|
|
8.22 |
|
Tangible book value per common
share (3) |
|
$ |
16.13 |
|
|
$ |
18.89 |
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
|
|
|
Nonperforming assets to total
assets at end of period (5) |
|
|
0.09 |
% |
|
|
0.07 |
% |
Nonperforming loans to total
loans (5) |
|
|
0.12 |
|
|
|
0.10 |
|
Allowance for loan losses to
nonperforming loans (5) |
|
|
900.34 |
|
|
|
1095.15 |
|
Allowance for loan losses to
total loans |
|
|
1.05 |
|
|
|
1.11 |
|
Annualized net charge-offs
(recoveries) to average outstanding loans |
|
|
0.04 |
|
|
|
(0.00 |
) |
|
|
|
|
|
|
|
|
|
Capital ratios (First
Fed Bank): |
|
|
|
|
|
|
|
|
Tier 1 leverage |
|
|
10.4 |
% |
|
|
10.6 |
% |
Common equity Tier 1
capital |
|
|
13.4 |
|
|
|
13.8 |
|
Tier 1 risk-based |
|
|
13.4 |
|
|
|
13.8 |
|
Total risk-based |
|
|
14.4 |
|
|
|
14.9 |
|
|
|
|
|
|
|
|
|
|
Other
Information: |
|
|
|
|
|
|
|
|
Average total assets |
|
$ |
1,975,233 |
|
|
$ |
1,765,230 |
|
Average total loans |
|
|
1,453,156 |
|
|
|
1,249,605 |
|
Average interest-earning
assets |
|
|
1,842,645 |
|
|
|
1,661,219 |
|
Average noninterest-bearing
deposits |
|
|
335,646 |
|
|
|
308,467 |
|
Average interest-bearing
deposits |
|
|
1,228,286 |
|
|
|
1,154,430 |
|
Average interest-bearing
liabilities |
|
|
1,430,796 |
|
|
|
1,238,833 |
|
Average equity |
|
|
172,125 |
|
|
|
188,215 |
|
Average shares –
basic |
|
|
9,082,032 |
|
|
|
9,135,341 |
|
Average shares –
diluted |
|
|
9,143,615 |
|
|
|
9,230,128 |
|
(1 |
) |
Net interest income divided by
average interest-earning assets. |
(2 |
) |
Total noninterest expense as a
percentage of net interest income and total other noninterest
income. |
(3 |
) |
See reconciliation of Non-GAAP
Financial Measures later in this release. |
(4 |
) |
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. |
(5 |
) |
Nonperforming loans consists of
nonaccruing loans and accruing loans more than 90 days past
due. |
|
|
|
FIRST NORTHWEST BANCORP AND
SUBSIDIARYADDITIONAL INFORMATION(Dollars in thousands)
(Unaudited)
Selected loan detail:
|
|
December 31,2022 |
|
|
September 30,2022 |
|
|
December 31,2021 |
|
|
Three MonthChange |
|
|
One YearChange |
|
|
|
(In thousands) |
|
Commercial business loans breakout |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP loans |
|
$ |
99 |
|
|
$ |
130 |
|
|
$ |
14,552 |
|
|
$ |
(31 |
) |
|
$ |
(14,453 |
) |
Northpointe Bank MPP |
|
|
— |
|
|
|
— |
|
|
|
26,272 |
|
|
|
— |
|
|
|
(26,272 |
) |
Secured lines of credit |
|
|
15,432 |
|
|
|
14,982 |
|
|
|
10,376 |
|
|
|
450 |
|
|
|
5,056 |
|
Unsecured lines of credit |
|
|
1,266 |
|
|
|
1,479 |
|
|
|
3,082 |
|
|
|
(213 |
) |
|
|
(1,816 |
) |
SBA loans |
|
|
7,692 |
|
|
|
6,975 |
|
|
|
237 |
|
|
|
717 |
|
|
|
7,455 |
|
Other commercial business
loans |
|
|
52,507 |
|
|
|
47,703 |
|
|
|
25,319 |
|
|
|
4,804 |
|
|
|
27,188 |
|
Total commercial business
loans |
|
$ |
76,996 |
|
|
$ |
71,269 |
|
|
$ |
79,838 |
|
|
$ |
5,727 |
|
|
$ |
(2,842 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto and other
consumer loans breakout |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Triad Manufactured Home
loans |
|
$ |
78,290 |
|
|
$ |
79,353 |
|
|
$ |
58,296 |
|
|
$ |
(1,063 |
) |
|
$ |
19,994 |
|
Woodside auto loans |
|
|
117,694 |
|
|
|
112,944 |
|
|
|
100,965 |
|
|
|
4,750 |
|
|
|
16,729 |
|
First Help auto loans |
|
|
5,084 |
|
|
|
5,912 |
|
|
|
5,752 |
|
|
|
(828 |
) |
|
|
(668 |
) |
Other auto loans |
|
|
8,082 |
|
|
|
10,229 |
|
|
|
13,861 |
|
|
|
(2,147 |
) |
|
|
(5,779 |
) |
Other consumer loans |
|
|
13,644 |
|
|
|
14,662 |
|
|
|
3,895 |
|
|
|
(1,018 |
) |
|
|
9,749 |
|
Total auto and other consumer
loans |
|
$ |
222,794 |
|
|
$ |
223,100 |
|
|
$ |
182,769 |
|
|
$ |
(306 |
) |
|
$ |
40,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
loans breakout |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family construction |
|
$ |
77,375 |
|
|
$ |
71,758 |
|
|
$ |
68,079 |
|
|
$ |
5,617 |
|
|
$ |
9,296 |
|
Multifamily construction |
|
|
77,026 |
|
|
|
99,153 |
|
|
|
88,919 |
|
|
|
(22,127 |
) |
|
|
(11,893 |
) |
Acquisition-renovation |
|
|
19,322 |
|
|
|
18,761 |
|
|
|
51,099 |
|
|
|
561 |
|
|
|
(31,777 |
) |
Nonresidential
construction |
|
|
9,212 |
|
|
|
16,034 |
|
|
|
6,308 |
|
|
|
(6,822 |
) |
|
|
2,904 |
|
Land and development |
|
|
11,711 |
|
|
|
11,469 |
|
|
|
10,304 |
|
|
|
242 |
|
|
|
1,407 |
|
Total construction and land
loans |
|
$ |
194,646 |
|
|
$ |
217,175 |
|
|
$ |
224,709 |
|
|
$ |
(22,529 |
) |
|
$ |
(30,063 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST NORTHWEST BANCORP AND
SUBSIDIARYADDITIONAL INFORMATION(Dollars in thousands)
(Unaudited)
Non-GAAP Financial MeasuresThis press release
contains financial measures that are not defined in generally
accepted accounting principles (“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. Reconciliations of the
GAAP and non-GAAP measures are presented below.
Calculations Based on Tangible Common
Equity:
|
|
December 31,2022 |
|
|
September 30,2022 |
|
|
June 30,2022 |
|
|
March 31,2022 |
|
|
December 31,2021 |
|
|
|
(Dollars in thousands, except per share data) |
|
Total shareholders’ equity |
|
$ |
158,282 |
|
|
$ |
156,599 |
|
|
$ |
165,154 |
|
|
$ |
177,776 |
|
|
$ |
190,480 |
|
Less: Goodwill and other
intangible assets |
|
|
1,089 |
|
|
|
1,173 |
|
|
|
1,176 |
|
|
|
1,180 |
|
|
|
1,183 |
|
Disallowed non-mortgage loan servicing rights |
|
|
714 |
|
|
|
814 |
|
|
|
754 |
|
|
|
951 |
|
|
|
870 |
|
Total tangible common
equity |
|
$ |
156,479 |
|
|
$ |
154,612 |
|
|
$ |
163,224 |
|
|
$ |
175,645 |
|
|
$ |
188,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,042,070 |
|
|
$ |
2,091,441 |
|
|
$ |
2,031,632 |
|
|
$ |
1,944,282 |
|
|
$ |
1,921,081 |
|
Less: Goodwill and other
intangible assets |
|
|
1,089 |
|
|
|
1,173 |
|
|
|
1,176 |
|
|
|
1,180 |
|
|
|
1,183 |
|
Disallowed non-mortgage loan servicing rights |
|
|
714 |
|
|
|
814 |
|
|
|
754 |
|
|
|
951 |
|
|
|
870 |
|
Total tangible assets |
|
$ |
2,040,267 |
|
|
$ |
2,089,454 |
|
|
$ |
2,029,702 |
|
|
$ |
1,942,151 |
|
|
$ |
1,919,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders’
equity |
|
$ |
157,590 |
|
|
$ |
168,264 |
|
|
$ |
173,584 |
|
|
$ |
189,455 |
|
|
$ |
189,706 |
|
Less: Average goodwill and
other intangible assets |
|
|
1,171 |
|
|
|
1,175 |
|
|
|
1,179 |
|
|
|
1,182 |
|
|
|
1,185 |
|
Average disallowed non-mortgage loan servicing rights |
|
|
813 |
|
|
|
755 |
|
|
|
949 |
|
|
|
1,381 |
|
|
|
643 |
|
Total average tangible common
equity |
|
$ |
155,606 |
|
|
$ |
166,334 |
|
|
$ |
171,456 |
|
|
$ |
186,892 |
|
|
$ |
187,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity ratio
(1) |
|
|
7.67 |
% |
|
|
7.40 |
% |
|
|
8.04 |
% |
|
|
9.04 |
% |
|
|
9.82 |
% |
Net income |
|
$ |
6,060 |
|
|
$ |
4,291 |
|
|
$ |
2,488 |
|
|
$ |
2,806 |
|
|
$ |
5,124 |
|
Return on tangible common
equity (1) |
|
|
15.45 |
% |
|
|
10.23 |
% |
|
|
5.82 |
% |
|
|
6.09 |
% |
|
|
10.82 |
% |
Common shares outstanding |
|
|
9,703,581 |
|
|
|
9,978,041 |
|
|
|
9,950,172 |
|
|
|
10,003,622 |
|
|
|
9,972,698 |
|
Tangible book value per common
share (1) |
|
$ |
16.13 |
|
|
$ |
15.50 |
|
|
$ |
16.40 |
|
|
$ |
17.56 |
|
|
$ |
18.89 |
|
GAAP Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets |
|
|
7.75 |
% |
|
|
7.49 |
% |
|
|
8.13 |
% |
|
|
9.14 |
% |
|
|
9.92 |
% |
Return on average equity |
|
|
15.26 |
% |
|
|
10.12 |
% |
|
|
5.75 |
% |
|
|
6.01 |
% |
|
|
10.72 |
% |
Book value per common share |
|
$ |
16.31 |
|
|
$ |
15.69 |
|
|
$ |
16.60 |
|
|
$ |
17.77 |
|
|
$ |
19.10 |
|
|
|
December 31, 2022 |
|
|
December 31, 2021 |
|
|
|
(Dollars in thousands, except per share data) |
|
Total shareholders’ equity |
|
$ |
158,282 |
|
|
$ |
190,480 |
|
Less: Goodwill and other
intangible assets |
|
|
1,089 |
|
|
|
1,183 |
|
Disallowed non-mortgage loan servicing rights |
|
|
714 |
|
|
|
870 |
|
Total tangible common
equity |
|
$ |
156,479 |
|
|
$ |
188,427 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,042,070 |
|
|
$ |
1,921,081 |
|
Less: Goodwill and other
intangible assets |
|
|
1,089 |
|
|
|
1,183 |
|
Disallowed non-mortgage loan servicing rights |
|
|
714 |
|
|
|
870 |
|
Total tangible assets |
|
$ |
2,040,267 |
|
|
$ |
1,919,028 |
|
|
|
|
|
|
|
|
|
|
Average shareholders’
equity |
|
$ |
172,125 |
|
|
$ |
188,215 |
|
Less: Average goodwill and
other intangible assets |
|
|
1,177 |
|
|
|
520 |
|
Average disallowed non-mortgage loan servicing rights |
|
|
972 |
|
|
|
144 |
|
Total average tangible common
equity |
|
$ |
169,976 |
|
|
$ |
187,551 |
|
|
|
|
|
|
|
|
|
|
Tangible common equity ratio
(1) |
|
|
7.67 |
% |
|
|
9.82 |
% |
Net income |
|
$ |
15,645 |
|
|
$ |
15,418 |
|
Return on tangible common
equity (1) |
|
|
9.20 |
% |
|
|
8.22 |
% |
Common shares outstanding |
|
|
9,703,581 |
|
|
|
9,972,698 |
|
Tangible book value per common
share (1) |
|
$ |
16.13 |
|
|
$ |
18.89 |
|
GAAP Ratios: |
|
|
|
|
|
|
|
|
Equity to total assets |
|
|
7.75 |
% |
|
|
9.92 |
% |
Return on average equity |
|
|
9.09 |
% |
|
|
8.19 |
% |
Book value per common share |
|
$ |
16.31 |
|
|
$ |
19.10 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures Footnote
(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. |
Contact:Matthew P. Deines, President and Chief Executive
OfficerGeri Bullard, EVP and Chief Financial OfficerFirst Northwest
Bancorp360-457-0461
First Northwest Bancorp (NASDAQ:FNWB)
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