Matthew P. Deines, President and CEO, comments on
financial results:
"First Fed generated solid first quarter results despite the
well-publicized challenges in the banking industry," said Matthew
P. Deines, President and CEO of First Northwest Bancorp. "Our
granular deposit franchise and reputation as a trusted member of
the communities we serve has proved a source of strength and
stability. We are well-positioned to navigate the rapidly changing
environment and enhance 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 May 26, 2023, to shareholders of record
as of the close of business on May 12, 2023.
FINANCIAL HIGHLIGHTS |
|
1Q 23 |
|
|
4Q 22 |
|
|
1Q 22 |
|
|
1Q 23 Highlights |
FINANCIAL RESULTS (in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
● |
Deposit
growth year-to-date of $30.0 million |
Operating revenue (1) |
|
$ |
18.6 |
|
|
$ |
22.3 |
|
|
$ |
17.9 |
|
|
– |
Retail growth $29.3 million, or 2.0% |
Noninterest expense |
|
|
14.9 |
|
|
|
15.1 |
|
|
|
14.8 |
|
|
– |
Brokered growth $654,000, or 0.5% |
Pre-provision net income |
|
|
16.3 |
|
|
|
18.9 |
|
|
|
15.5 |
|
|
|
|
Net
income |
|
|
3.5 |
|
|
|
6.1 |
|
|
|
2.8 |
|
|
● |
Loan
growth year-to-date of $31.9 million, |
PER SHARE
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
or
2% |
Basic and diluted
earnings |
|
$ |
0.39 |
|
|
$ |
0.66 |
|
|
$ |
0.30 |
|
|
|
|
Book value |
|
|
16.57 |
|
|
|
16.31 |
|
|
|
17.77 |
|
|
● |
Deposit
insurance coverage update: |
Tangible book value * |
|
|
16.38 |
|
|
|
16.13 |
|
|
|
17.56 |
|
|
– |
Estimated uninsured deposits totaling |
BALANCE SHEET (in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$271.3 million, or approximately 17% |
Total loans |
|
$ |
1,579 |
|
|
$ |
1,548 |
|
|
$ |
1,386 |
|
|
|
of total deposits |
Total deposits |
|
|
1,594 |
|
|
|
1,564 |
|
|
|
1,549 |
|
|
|
42% of uninsured in urban areas |
Total
shareholders' equity |
|
|
160 |
|
|
|
158 |
|
|
|
178 |
|
|
|
58% of uninsured in rural areas |
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
– |
Estimated collateralized deposits to total |
Net charge-off ratio |
|
|
0.25 |
% |
|
|
0.11 |
% |
|
|
0.00 |
% |
|
|
deposits of 7% |
Nonperforming assets to total
assets |
|
|
0.12 |
|
|
|
0.09 |
|
|
|
0.06 |
|
|
– |
Estimated insured deposits to total |
Allowance for credit losses on
loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deposits of 76% |
to total loans |
|
|
1.10 |
|
|
|
1.04 |
|
|
|
1.09 |
|
|
|
|
Nonperforming loan coverage ratio |
|
|
661 |
|
|
|
900 |
|
|
|
1,227 |
|
|
● |
Liquidity: |
SELECTED
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increased on balance sheet liquidity |
Return on average assets |
|
|
0.70 |
% |
|
|
1.18 |
% |
|
|
0.60 |
% |
|
|
in
response to recent bank failures. |
Return on average equity |
|
|
8.98 |
|
|
|
15.26 |
|
|
|
6.01 |
|
|
|
|
Return on average tangible
equity * |
|
|
9.08 |
|
|
|
15.45 |
|
|
|
6.09 |
|
|
● |
Asset
quality: |
Net interest margin |
|
|
3.46 |
|
|
|
3.96 |
|
|
|
3.53 |
|
|
|
Credit
metrics remain stable. Past due and |
Efficiency ratio |
|
|
79.78 |
|
|
|
67.91 |
|
|
|
82.91 |
|
|
|
nonperforming balances remain low. |
Common equity tier 1 (CETI)
ratio |
|
|
13.34 |
|
|
|
13.40 |
|
|
|
13.67 |
|
|
|
|
Total
risk-based capital ratio |
|
|
14.36 |
|
|
|
14.42 |
|
|
|
14.73 |
|
|
|
|
(1) Net interest income before provision plus noninterest
income* See reconciliation of Non-GAAP Financial Measures
later in this release.
First Northwest Bancorp (Nasdaq:
FNWB) ("First Northwest" or "Company") today reported
quarterly net income of $3.5 million for the first
quarter of 2023, compared to $6.1 million for the fourth
quarter of 2022, and $2.8 million for the first quarter
of 2022. Basic and diluted earnings per share were $0.39 for
the first quarter of 2023, compared to $0.66 for
the fourth quarter of 2022, and $0.30 for the first
quarter of 2022. In the first quarter of 2023, the Company
generated a return on average assets ("ROAA") of 0.70%, a return on
average equity ("ROAE") of 8.98%, and a return on average
tangible common equity* of 9.08%. Results in the first quarter of
2023 were positively impacted by a recapture of provision for
credit losses on unfunded commitments and a reduction in
noninterest expense.
The Company implemented the Current Expected Credit Loss
(“CECL”) model for estimating the allowance for losses on loans and
other assets effective January 1, 2023. The initial recognition
resulted in increases of $2.2 million to the Allowance for Credit
Losses on Loans and $1.5 million to the Unfunded Commitment
Liability. The tax-effected cumulative effect of this change in
accounting estimate of $3.0 million was recorded in retained
earnings. Subsequent adjustments in the allowance for credit losses
estimate are recorded in net income. The CECL model attempts to
predict future losses by relying on projected metrics, such as
unemployment and national GDP, applied to current balances. We
recorded a recapture of the provision for credit losses during the
first quarter of 2023 primarily due to a $22.2 million reduction in
unfunded commitments during the current quarter. We anticipate
continued fluctuation in the provision for credit losses going
forward as both projected metrics and balances change.
Net Interest IncomeTotal interest income
decreased $379,000 to $23.3 million for the first quarter
of 2023, compared to $23.7 million in the previous quarter,
and increased $6.4 million from $16.9 million in the
first quarter of 2022. Interest income decreased in the current
quarter due to a higher reduction in fees related to the prepayment
of certain loans compared to the prior quarter in excess of the
gains recorded from higher yields on earning assets. Interest and
fees on loans increased year-over-year, in part, as the
Company's banking subsidiary, First Fed Bank ("First Fed" or
"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 have
increased over the prior year due to higher rates on new
originations as well as the repricing of variable rate loans tied
to the Prime Rate or other indices.
Total interest expense was $7.0 million for the first
quarter of 2023, compared to $4.7 million in
the fourth quarter of 2022 and $1.4 million in
the first quarter a year ago. Current quarter interest expense
was higher due to a 50 basis point increase in the cost
of deposits to 1.12% at March 31, 2023,
from 0.62% at the prior quarter end. The increase
over the first quarter of 2022 was the result of
a 93 basis point increase in the cost of deposits
from 0.19% one year prior along with higher volumes of
short-term FHLB advances and certificates of deposit ("CDs"). A
shift in the deposit mix from transaction and money market accounts
to a higher volume of savings accounts and CDs, primarily
promotional, resulted in higher costs of deposits.
Net interest income before provision for credit
losses for the first quarter of
2023 decreased 13.9% to $16.3 million, compared
to $18.9 million for the preceding quarter, and
increased 5.3% from the first quarter one year
ago.
The Company recorded a $500,000 recapture of provision for
credit losses in the first quarter of 2023, reflecting a decrease
in unfunded commitments during the quarter, primarily due to
construction loan disbursements, as well as improvements in
the underlying assumptions driving anticipated loss rates within
the CECL model adopted January 1, 2023. Specifically, the gross
domestic product assumption metric improved since
implementation at the beginning of 2023. This compares to a
loan loss provision of $285,000 for the preceding quarter
and no provision for the first quarter of 2022, which were both
estimated using the incurred loss method based on historical loss
trends combined with qualitative adjustments.
The net interest margin decreased to 3.46% for the first
quarter of 2023, from 3.96% the prior quarter, and
decreased 7 basis points compared to the first quarter of
2022 of 3.53%. Decreases from both the prior quarter and the
prior year are primarily due to higher funding costs for both
deposits and borrowed funds.
The yield on average earning assets of 4.95% for the
first quarter of 2023, was flat compared to the fourth quarter
of 2022, and increased 109 basis points
from 3.86% for the first quarter of 2022. Higher loan
rates at origination and increased yields on variable-rate loans
were offset by a decline in the recognition of fees related to the
prepayment of certain loans during the fourth quarter. 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 cost of average interest-bearing liabilities
increased to 1.81% for the first quarter of 2023,
compared to 1.24% for the fourth quarter of 2022, and
increased from 0.43% for the first quarter of
2022. Total cost of funds increased to 1.53% for
the first quarter of 2023 from 1.02% in the prior
quarter and increased from 0.34% for the first
quarter of 2022. Current quarter increases were due to higher costs
on interest-bearing deposits and advances in addition to an
increase in average certificate of deposit balances.
The increase over the same quarter last year was driven by
higher rates paid on deposits. The Company has attracted and
retained funding through the use of promotional products. The
mix of retail deposit balances has shifted away from non-maturity
accounts towards higher cost term certificate and savings products.
Retail CDs represented 22.8%, 17.3% and 11.7% of retail
deposits at March 31, 2023, December 31, 2022 and March 31,
2022, respectively.
Selected Yields |
|
1Q 23 |
|
|
4Q 22 |
|
|
3Q 22 |
|
|
2Q 22 |
|
|
1Q 22 |
|
Loan yield |
|
|
5.16 |
% |
|
|
5.22 |
% |
|
|
4.75 |
% |
|
|
4.48 |
% |
|
|
4.43 |
% |
Investment securities
yield |
|
|
3.93 |
|
|
|
3.71 |
|
|
|
3.21 |
|
|
|
2.96 |
|
|
|
2.57 |
|
Cost of interest-bearing
deposits |
|
|
1.37 |
|
|
|
0.78 |
|
|
|
0.41 |
|
|
|
0.26 |
|
|
|
0.24 |
|
Cost of deposits |
|
|
1.12 |
|
|
|
0.62 |
|
|
|
0.32 |
|
|
|
0.20 |
|
|
|
0.19 |
|
Cost of borrowed funds |
|
|
3.92 |
|
|
|
3.30 |
|
|
|
2.50 |
|
|
|
1.96 |
|
|
|
2.32 |
|
Net interest spread |
|
|
3.14 |
|
|
|
3.72 |
|
|
|
3.72 |
|
|
|
3.65 |
|
|
|
3.43 |
|
Net interest margin |
|
|
3.46 |
|
|
|
3.96 |
|
|
|
3.88 |
|
|
|
3.77 |
|
|
|
3.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest IncomeNoninterest income declined
30.7% to $2.3 million for the first quarter of 2023
from $3.4 million for the fourth quarter of
2022 from the prior quarter due partly to the non-recurring
BOLI death benefit payment recorded in the fourth quarter of
2022. Noninterest income declined slightly from the same
quarter one year ago, with decreases in gain on sale of loans and
gain on sale investment securities. Saleable mortgage loan
production continues to be hindered by reduced refinancing activity
due to rising market rates on mortgage loans and a lack of
single-family home inventory compared to the prior year.
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
thousands |
|
1Q 23 |
|
|
4Q 22 |
|
|
3Q 22 |
|
|
2Q 22 |
|
|
1Q 22 |
|
Loan and deposit service
fees |
|
$ |
1,141 |
|
|
$ |
1,163 |
|
|
$ |
1,302 |
|
|
|
1,091 |
|
|
$ |
1,173 |
|
Sold loan servicing fees and
servicing right mark-to-market |
|
|
493 |
|
|
|
202 |
|
|
|
206 |
|
|
|
27 |
|
|
|
432 |
|
Net gain on sale of loans |
|
|
176 |
|
|
|
55 |
|
|
|
285 |
|
|
|
231 |
|
|
|
253 |
|
Net gain on sale of investment
securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
126 |
|
Increase in cash surrender
value of bank-owned life insurance |
|
|
226 |
|
|
|
230 |
|
|
|
221 |
|
|
|
213 |
|
|
|
252 |
|
Income from death benefit on
bank-owned life insurance, net |
|
|
— |
|
|
|
1,489 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other income |
|
|
298 |
|
|
|
229 |
|
|
|
320 |
|
|
|
668 |
|
|
|
167 |
|
Total noninterest income |
|
$ |
2,334 |
|
|
$ |
3,368 |
|
|
$ |
2,334 |
|
|
$ |
2,222 |
|
|
$ |
2,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest ExpenseNoninterest expense
totaled $14.9 million for the first quarter of 2023, compared
to $15.1 million for the preceding quarter and $14.8
million for the first quarter a year ago. Compensation and benefits
was lower due to a decrease in medical insurance and payroll tax
expense as well as lower commissions and incentives paid. The
payroll tax expense was reduced in the first quarter of 2023 by a
portion of the Employee Retention Credit ("ERC") received
in March 2023. These decreases were partially offset by an increase
in advertising related to strategic deposit gathering initiatives
and additional corporate sponsorships. The increase over
the first quarter of 2022 reflects increases in data
processing and occupancy expenses associated with building enhanced
technological infrastructure, offset by the medical insurance and
payroll tax refunds received and lower commissions and incentives
paid in 2023.
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
thousands |
|
1Q 23 |
|
|
4Q 22 |
|
|
3Q 22 |
|
|
2Q 22 |
|
|
1Q 22 |
|
Compensation and benefits |
|
$ |
7,837 |
|
|
$ |
8,357 |
|
|
$ |
9,045 |
|
|
$ |
9,735 |
|
|
$ |
8,803 |
|
Data processing |
|
|
2,038 |
|
|
|
2,119 |
|
|
|
1,778 |
|
|
|
1,870 |
|
|
|
1,772 |
|
Occupancy and equipment |
|
|
1,209 |
|
|
|
1,300 |
|
|
|
1,499 |
|
|
|
1,432 |
|
|
|
1,167 |
|
Supplies, postage, and
telephone |
|
|
355 |
|
|
|
333 |
|
|
|
322 |
|
|
|
408 |
|
|
|
313 |
|
Regulatory assessments and
state taxes |
|
|
389 |
|
|
|
372 |
|
|
|
365 |
|
|
|
441 |
|
|
|
361 |
|
Advertising |
|
|
1,041 |
|
|
|
486 |
|
|
|
645 |
|
|
|
1,370 |
|
|
|
752 |
|
Professional fees |
|
|
806 |
|
|
|
762 |
|
|
|
695 |
|
|
|
629 |
|
|
|
559 |
|
FDIC insurance premium |
|
|
257 |
|
|
|
235 |
|
|
|
219 |
|
|
|
211 |
|
|
|
223 |
|
Other expense |
|
|
939 |
|
|
|
1,179 |
|
|
|
807 |
|
|
|
867 |
|
|
|
881 |
|
Total noninterest expense |
|
$ |
14,871 |
|
|
$ |
15,143 |
|
|
$ |
15,375 |
|
|
$ |
16,963 |
|
|
$ |
14,831 |
|
Efficiency ratio |
|
|
79.78 |
% |
|
|
67.91 |
% |
|
|
74.86 |
% |
|
|
87.15 |
% |
|
|
82.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment SecuritiesInvestment securities
increased $2.5 million, or 0.8%, to $329.1 million at March
31, 2023, compared to $326.6 million three months earlier, and
decreased $48.6 million compared to $377.7 million at
March 31, 2022. The market value of the portfolio increased
$4.8 million during the first quarter of 2023, primarily
driven by a decrease in long-term interest rates. At March 31,
2023, municipal bonds totaled $101.9 million and comprised the
largest portion of the investment portfolio at 31.0%. Non-agency
issued mortgage-backed securities were the second largest segment,
totaling $93.0 million, or 28.3%, of the portfolio at
quarter end. The estimated average life of the securities portfolio
was approximately 8.1 years, compared to 8.2 years
in the prior quarter and 7.0 years in the first quarter
of 2022. The effective duration of the portfolio was approximately
5.1 years, compared to 5.1 years in the prior quarter and
5.0 years at the end of the first quarter of 2022.
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
thousands |
|
1Q 23 |
|
|
4Q 22 |
|
|
3Q 22 |
|
|
2Q 22 |
|
|
1Q 22 |
|
Municipal bonds |
|
$ |
101,910 |
|
|
$ |
98,050 |
|
|
$ |
96,130 |
|
|
$ |
104,048 |
|
|
$ |
110,248 |
|
U.S. Treasury notes |
|
|
2,390 |
|
|
|
2,364 |
|
|
|
2,355 |
|
|
|
2,420 |
|
|
|
2,450 |
|
International agency issued
bonds (Agency bonds) |
|
|
1,745 |
|
|
|
1,702 |
|
|
|
1,683 |
|
|
|
1,762 |
|
|
|
1,811 |
|
Corporate issued debt
securities (Corporate debt) |
|
|
55,117 |
|
|
|
55,499 |
|
|
|
56,165 |
|
|
|
57,977 |
|
|
|
59,904 |
|
U.S. Small Business
Administration securities (SBA) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,777 |
|
Mortgage-backed
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government agency issued
mortgage-backed securities (MBS agency) |
|
|
74,946 |
|
|
|
75,648 |
|
|
|
78,231 |
|
|
|
85,796 |
|
|
|
96,064 |
|
Non-agency issued
mortgage-backed securities (MBS non-agency) |
|
|
92,978 |
|
|
|
93,306 |
|
|
|
94,872 |
|
|
|
101,141 |
|
|
|
104,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and Unfunded Loan CommitmentsNet loans,
excluding loans held for sale, increased $30.6 million, or 2.0%, to
$1.56 billion at March 31, 2023, from $1.53 billion at
December 31, 2022, and increased $191.5 million, or 14.0%,
from $1.37 billion one year ago. One-to-four family loans
increased $11.0 million during the current quarter as a
result of $1.1 million in new amortizing loan originations and
$18.1 million of residential construction loans that converted
to permanent amortizing loans, partially offset by sales and
payments received. Multi-family loans increased
$32.3 million during the current quarter. The increase was the
result of new originations totaling $9.2 million and
$9.9 million of construction loans converting into permanent
amortizing loans. Construction loans decreased $32.4 million
during the quarter, with $48.0 million converting into
fully amortizing loans, partially offset by draws on new and
existing loans. Commercial business, automobile, and home equity
loans increased $23.1 million, $12.0 million and $1.2 million,
respectively, during the current quarter compared to the
previous quarter as originations and draws on existing commitments
exceeded payoffs and scheduled payments. Commercial real estate
loans decreased $16.0 million, with payoffs and scheduled payments
in excess of the $20.0 million of construction loans that
converted into permanent amortizing loans.
The Company originated $5.8 million in residential
mortgages during the first quarter of 2023 and sold $5.4
million, with an average gross margin on sale of mortgage loans of
approximately 1.99%. This production compares to residential
mortgage originations of $8.6 million in the preceding quarter
with sales of $3.3 million, with an average gross margin of 2.19%.
Higher market rates on mortgage loans and a lack of
single-family home inventory continued to hinder saleable mortgage
loan production in the first quarter. New single-family residence
construction loan commitments totaled $4.9 million in the
first quarter, compared to $16.1 million in the preceding
quarter.
Loans by Collateral and Unfunded Commitments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
thousands |
|
1Q 23 |
|
|
4Q 22 |
|
|
3Q 22 |
|
|
2Q 22 |
|
|
1Q 22 |
|
One-to-four family
construction |
|
$ |
65,770 |
|
|
$ |
63,021 |
|
|
$ |
58,038 |
|
|
$ |
60,848 |
|
|
$ |
70,091 |
|
All other construction and
land |
|
|
95,769 |
|
|
|
130,588 |
|
|
|
157,527 |
|
|
|
152,024 |
|
|
|
137,611 |
|
One-to-four family first
mortgage |
|
|
394,595 |
|
|
|
384,255 |
|
|
|
374,309 |
|
|
|
351,813 |
|
|
|
331,788 |
|
One-to-four family junior
liens |
|
|
9,140 |
|
|
|
8,219 |
|
|
|
7,244 |
|
|
|
2,701 |
|
|
|
2,969 |
|
One-to-four family revolving
open-end |
|
|
30,473 |
|
|
|
29,909 |
|
|
|
27,496 |
|
|
|
25,438 |
|
|
|
20,897 |
|
Commercial real estate, owner
occupied: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health care |
|
|
23,311 |
|
|
|
23,463 |
|
|
|
23,909 |
|
|
|
24,058 |
|
|
|
24,235 |
|
Office |
|
|
22,246 |
|
|
|
22,583 |
|
|
|
23,002 |
|
|
|
24,311 |
|
|
|
25,936 |
|
Warehouse |
|
|
16,782 |
|
|
|
20,411 |
|
|
|
18,479 |
|
|
|
21,144 |
|
|
|
21,174 |
|
Other |
|
|
52,212 |
|
|
|
47,778 |
|
|
|
38,282 |
|
|
|
31,375 |
|
|
|
29,142 |
|
Commercial real estate,
non-owner occupied: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
58,711 |
|
|
|
59,216 |
|
|
|
60,655 |
|
|
|
62,971 |
|
|
|
61,522 |
|
Retail |
|
|
52,175 |
|
|
|
54,800 |
|
|
|
53,186 |
|
|
|
50,818 |
|
|
|
48,929 |
|
Hospitality |
|
|
45,978 |
|
|
|
46,349 |
|
|
|
44,359 |
|
|
|
44,845 |
|
|
|
53,633 |
|
Other |
|
|
93,207 |
|
|
|
89,047 |
|
|
|
98,386 |
|
|
|
96,597 |
|
|
|
79,585 |
|
Multi-family residential |
|
|
284,699 |
|
|
|
252,765 |
|
|
|
242,509 |
|
|
|
220,677 |
|
|
|
203,101 |
|
Commercial business loans |
|
|
80,825 |
|
|
|
73,963 |
|
|
|
69,626 |
|
|
|
69,888 |
|
|
|
52,848 |
|
Commercial agriculture and
fishing loans |
|
|
1,829 |
|
|
|
1,847 |
|
|
|
938 |
|
|
|
525 |
|
|
|
539 |
|
State and political
subdivision obligations |
|
|
439 |
|
|
|
439 |
|
|
|
472 |
|
|
|
472 |
|
|
|
472 |
|
Consumer automobile loans |
|
|
136,540 |
|
|
|
136,213 |
|
|
|
134,221 |
|
|
|
133,364 |
|
|
|
127,712 |
|
Consumer loans secured by
other assets |
|
|
114,343 |
|
|
|
102,333 |
|
|
|
104,272 |
|
|
|
102,685 |
|
|
|
93,165 |
|
Consumer loans unsecured |
|
|
420 |
|
|
|
352 |
|
|
|
481 |
|
|
|
745 |
|
|
|
367 |
|
Total loans |
|
$ |
1,579,464 |
|
|
$ |
1,547,551 |
|
|
$ |
1,537,391 |
|
|
$ |
1,477,299 |
|
|
$ |
1,385,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unfunded loan commitments |
|
$ |
203,014 |
|
|
$ |
225,836 |
|
|
$ |
231,208 |
|
|
$ |
250,311 |
|
|
$ |
260,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DepositsTotal deposits increased $30.0 million,
to $1.59 billion at March 31, 2023, compared to $1.56
billion at December 31, 2022, and increased $44.8 million, or 2.9%,
compared to $1.55 billion one year ago. Increases in
consumer CDs of $75.2 million, business savings account
balances of $29.8 million, business CD balances of
$12.3 million, consumer savings account balances of
$11.4 million, and brokered CDs of $654,000, were offset by
decreases in consumer money market account balances of
$62.2 million, business demand account balances of
$15.1 million, consumer demand account balances of
$12.4 million, business money market account balances of
$8.0 million, and public fund CDs of $1.9 million
during the first quarter. We believe decreases in certain
categories were driven by customers seeking higher rates and
additional diversification over a variety of account types.
The current rate environment has contributed to greater competition
for deposits with more rate specials offered to attract new
funds.
Demand deposits decreased 9.4% compared to a year ago to
$481.3 million at March 31, 2023, and represented 30.2% of
total deposits; money market accounts decreased 30.8% compared to a
year ago to $402.8 million, and represented 25.3% of total
deposits; savings accounts increased 22.7% compared to a year ago
to $242.1 million at March 31, 2023, and represented 15.2% of
total deposits; and CDs increased 95.8% compared to a year ago
to $468.0 million at quarter-end, and represented
29.4% of total deposits. Brokered CDs increased $68.8 million
to $134.5 million at March 31, 2023, from $65.7 million a
year ago, accounting for 30.0% of the increase in CD balances.
The Company estimates that approximately 17% of total deposits
are uninsured. Consumer deposits make up 62% of total deposits with
an average balance of approximately $24,000 per account.
Collateralized public fund balances totaled $115.3 million
at March 31, 2023. While the mix of deposits moved to higher
cost product types, the Company did not experience any unusual
deposit activity in the first quarter of 2023.
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
thousands |
|
1Q 23 |
|
|
4Q 22 |
|
|
3Q 22 |
|
|
2Q 22 |
|
|
1Q 22 |
|
Noninterest-bearing demand deposits |
|
$ |
292,119 |
|
|
$ |
315,083 |
|
|
$ |
342,808 |
|
|
$ |
336,311 |
|
|
$ |
326,289 |
|
Interest-bearing demand
deposits |
|
|
189,187 |
|
|
|
193,558 |
|
|
|
192,504 |
|
|
|
192,114 |
|
|
|
204,949 |
|
Money market accounts |
|
|
402,760 |
|
|
|
473,009 |
|
|
|
519,018 |
|
|
|
587,747 |
|
|
|
581,804 |
|
Savings accounts |
|
|
242,117 |
|
|
|
200,920 |
|
|
|
196,780 |
|
|
|
195,029 |
|
|
|
197,351 |
|
Certificates of deposit,
retail |
|
|
333,510 |
|
|
|
247,824 |
|
|
|
224,574 |
|
|
|
183,823 |
|
|
|
173,281 |
|
Certificates of deposit,
brokered |
|
|
134,515 |
|
|
|
133,861 |
|
|
|
129,551 |
|
|
|
85,700 |
|
|
|
65,740 |
|
Total deposits |
|
$ |
1,594,208 |
|
|
$ |
1,564,255 |
|
|
$ |
1,605,235 |
|
|
$ |
1,580,724 |
|
|
$ |
1,549,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
to total deposits |
|
|
18 |
% |
|
|
20 |
% |
|
|
21 |
% |
|
|
21 |
% |
|
|
21 |
% |
Total loans to total
deposits |
|
|
99 |
% |
|
|
99 |
% |
|
|
96 |
% |
|
|
93 |
% |
|
|
89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset QualityNonperforming loans were $2.6
million at March 31, 2023, an increase of $843,000
from December 31, 2022, related to increased delinquencies in
a single-family residential loan, Triad purchased manufactured home
loans and Splash unsecured consumer loans. The percentage of
the allowance for credit losses on loans to nonperforming loans
decreased to 661% at March 31, 2023,
from 900% at December 31, 2022, and decreased
from 1227% at March 31, 2022. Classified loans
increased $1.3 million to $18.2 million at March 31,
2023, due to the downgrade of one $537,000 single-family
residential loan during the first quarter along with
delinquent Triad purchased manufactured home loans totaling
$320,000 and Splash unsecured consumer loans totaling $438,000. The
allowance for credit losses on loans as a percentage of total loans
was 1.10% at March 31, 2023, increasing from 1.04% at
the prior quarter end and increasing from 1.09% reported
one year earlier.
$ in
thousands |
|
1Q 23 |
|
|
4Q 22 |
|
|
3Q 22 |
|
|
2Q 22 |
|
|
1Q 22 |
|
Allowance for credit losses on loans to total loans |
|
|
1.10 |
% |
|
|
1.04 |
% |
|
|
1.06 |
% |
|
|
1.07 |
% |
|
|
1.09 |
% |
Allowance for credit losses on
loans to nonperforming loans |
|
|
661 |
|
|
|
900 |
|
|
|
463 |
|
|
|
1269 |
|
|
|
1227 |
|
Nonperforming loans to total
loans |
|
|
0.17 |
|
|
|
0.12 |
|
|
|
0.22 |
|
|
|
0.08 |
|
|
|
0.09 |
|
Net charge-off ratio
(annualized) |
|
|
0.25 |
|
|
|
0.11 |
|
|
|
0.06 |
|
|
|
(0.03 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans |
|
$ |
2,633 |
|
|
$ |
1,790 |
|
|
$ |
3,517 |
|
|
$ |
1,241 |
|
|
$ |
1,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded
commitments |
|
$ |
1,336 |
|
|
$ |
325 |
|
|
$ |
331 |
|
|
$ |
358 |
|
|
$ |
368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CapitalTotal shareholders’ equity increased to
$160.3 million at March 31, 2023, compared to $158.3
million three months earlier, due to $3.5 million of net
income and an increase in the fair market value of the investment
securities portfolio, net of taxes, of $3.7 million,
partially offset by a $3.0 million decrease for the cumulative CECL
adjustment, a $1.4 million decrease in the fair market value
of derivatives, net of taxes and the cost of repurchased shares.
Bond values increased quarter-over-quarter as the economic
outlook on long-term rates fell, partially influenced by the recent
bank failures.
Tangible book value per common
share* was $16.38 at March 31, 2023, compared
to $16.13 at December 31, 2022, and $17.56 at
March 31, 2022. Book value per common
share was $16.57 at March 31, 2023, compared
to $16.31 at December 31, 2022, and $17.77 at
March 31, 2022.
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 March 31,
2023. Common Equity Tier 1 and Total Risk-Based Capital Ratios at
March 31, 2023, were 13.3% and 14.4%, respectively.
|
|
1Q 23 |
|
|
4Q 22 |
|
|
3Q 22 |
|
|
2Q 22 |
|
|
1Q 22 |
|
Equity to total assets |
|
|
7.38 |
% |
|
|
7.75 |
% |
|
|
7.49 |
% |
|
|
8.13 |
% |
|
|
9.14 |
% |
Tangible common equity ratio
* |
|
|
7.30 |
|
|
|
7.67 |
|
|
|
7.40 |
|
|
|
8.04 |
|
|
|
9.04 |
|
Capital ratios (First Fed
Bank): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
|
|
10.41 |
|
|
|
10.41 |
|
|
|
10.50 |
|
|
|
10.41 |
|
|
|
10.61 |
|
Common equity Tier 1
capital |
|
|
13.34 |
|
|
|
13.40 |
|
|
|
13.13 |
|
|
|
13.21 |
|
|
|
13.67 |
|
Tier 1 risk-based |
|
|
13.34 |
|
|
|
13.40 |
|
|
|
13.13 |
|
|
|
13.21 |
|
|
|
13.67 |
|
Total risk-based |
|
|
14.36 |
|
|
|
14.42 |
|
|
|
14.16 |
|
|
|
14.24 |
|
|
|
14.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Repurchase Program and Cash DividendFirst
Northwest continued to return capital to our shareholders
through cash dividends and share repurchases during the first
quarter of 2023. We repurchased 44,441 shares of common stock
under the Company's October 2020 stock repurchase plan at an
average price of $14.07 per share for a total of $627,000
during the quarter ended March 31, 2023, leaving 257,586 shares
remaining under the plan. In addition, the Company paid cash
dividends totaling $671,000 in the first quarter of
2023.
____________
* See reconciliation of Non-GAAP Financial Measures later
in this release.
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 of
its subsidiary, First Fed Bank. First Fed is a Pacific
Northwest-based financial institution which has served its
customers and communities since 1923. Currently First Fed has 16
locations in Washington state including 12 full-service branches.
First Fed’s business and operating strategy is focused on building
sustainable earnings by delivering a full array of financial
products and services for individuals, small businesses, non-profit
organizations, and commercial customers. In 2022, First Northwest
made an investment in The Meriwether Group, LLC, a boutique
investment banking and accelerator firm. Additionally, First
Northwest focuses on strategic partnerships to provide modern
financial services such as digital payments and marketplace
lending. First Northwest Bancorp was incorporated in 2012 and
completed its initial public offering in 2015 under the ticker
symbol FNWB. The Company is headquartered in Port Angeles,
Washington.
Forward-Looking Statements
Certain matters discussed in this press release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to, among other things, expectations of the
business environment in which we operate, projections of future
performance, perceived opportunities in the market, potential
future credit experience, 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; pressures on liquidity, including as a result
of withdrawals of deposits or declines in the value of our
investment portfolio; changes in general economic conditions
and conditions within the securities markets; legislative and
regulatory changes; 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.
For More Information Contact:Matthew P. Deines,
President and Chief Executive OfficerGeri Bullard, EVP and Chief
Financial OfficerIRGroup@ourfirstfed.com360-457-0461
FIRST NORTHWEST BANCORP AND SUBSIDIARYCONSOLIDATED
BALANCE SHEETS(Dollars in thousands, except share data)
(Unaudited) |
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
March 31, 2022 |
|
|
Three Month Change |
|
|
One Year Change |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
17,844 |
|
|
$ |
17,104 |
|
|
$ |
16,271 |
|
|
|
4.3 |
% |
|
|
9.7 |
% |
Interest-earning deposits in
banks |
|
|
122,773 |
|
|
|
28,492 |
|
|
|
66,257 |
|
|
|
330.9 |
|
|
|
85.3 |
|
Investment securities
available for sale, at fair value |
|
|
329,086 |
|
|
|
326,569 |
|
|
|
377,695 |
|
|
|
0.8 |
|
|
|
-12.9 |
|
Loans held for sale |
|
|
— |
|
|
|
597 |
|
|
|
1,334 |
|
|
|
-100.0 |
|
|
|
-100.0 |
|
Loans receivable (net of
allowance for credit losses loans $17,396, $16,116, and
$15,127) |
|
|
1,562,068 |
|
|
|
1,531,435 |
|
|
|
1,370,589 |
|
|
|
2.0 |
|
|
|
14.0 |
|
Federal Home Loan Bank (FHLB)
stock, at cost |
|
|
15,602 |
|
|
|
11,681 |
|
|
|
8,122 |
|
|
|
33.6 |
|
|
|
92.1 |
|
Accrued interest
receivable |
|
|
7,205 |
|
|
|
6,743 |
|
|
|
5,696 |
|
|
|
6.9 |
|
|
|
26.5 |
|
Premises and equipment,
net |
|
|
18,252 |
|
|
|
18,089 |
|
|
|
21,050 |
|
|
|
0.9 |
|
|
|
-13.3 |
|
Servicing rights on sold
loans, at fair value |
|
|
4,224 |
|
|
|
3,887 |
|
|
|
4,046 |
|
|
|
8.7 |
|
|
|
4.4 |
|
Bank-owned life insurance,
net |
|
|
39,878 |
|
|
|
39,665 |
|
|
|
39,570 |
|
|
|
0.5 |
|
|
|
0.8 |
|
Equity and partnership
investments |
|
|
14,392 |
|
|
|
14,289 |
|
|
|
3,777 |
|
|
|
0.7 |
|
|
|
281.0 |
|
Goodwill and other intangible
assets, net |
|
|
1,088 |
|
|
|
1,089 |
|
|
|
1,180 |
|
|
|
-0.1 |
|
|
|
-7.8 |
|
Deferred tax asset, net |
|
|
14,211 |
|
|
|
14,091 |
|
|
|
5,809 |
|
|
|
0.9 |
|
|
|
144.6 |
|
Prepaid expenses and other
assets |
|
|
25,471 |
|
|
|
28,339 |
|
|
|
22,886 |
|
|
|
-10.1 |
|
|
|
11.3 |
|
Total assets |
|
$ |
2,172,094 |
|
|
$ |
2,042,070 |
|
|
$ |
1,944,282 |
|
|
|
6.4 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
1,594,208 |
|
|
$ |
1,564,255 |
|
|
$ |
1,549,414 |
|
|
|
1.9 |
% |
|
|
2.9 |
% |
Borrowings |
|
|
379,377 |
|
|
|
285,358 |
|
|
|
184,250 |
|
|
|
32.9 |
|
|
|
105.9 |
|
Accrued interest payable |
|
|
508 |
|
|
|
455 |
|
|
|
13 |
|
|
|
11.6 |
|
|
|
3,807.7 |
|
Accrued expenses and other
liabilities |
|
|
35,255 |
|
|
|
32,344 |
|
|
|
30,691 |
|
|
|
9.0 |
|
|
|
14.9 |
|
Advances from borrowers for
taxes and insurance |
|
|
2,410 |
|
|
|
1,376 |
|
|
|
2,138 |
|
|
|
75.1 |
|
|
|
12.7 |
|
Total liabilities |
|
|
2,011,758 |
|
|
|
1,883,788 |
|
|
|
1,766,506 |
|
|
|
6.8 |
|
|
|
13.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 9,674,055 at March 31, 2023; issued and outstanding
9,703,581 at December 31, 2022; and issued and outstanding
10,003,622 at March 31, 2022 |
|
|
97 |
|
|
|
97 |
|
|
|
100 |
|
|
|
0.0 |
|
|
|
-3.0 |
|
Additional paid-in capital |
|
|
95,333 |
|
|
|
95,508 |
|
|
|
96,473 |
|
|
|
-0.2 |
|
|
|
-1.2 |
|
Retained earnings |
|
|
114,139 |
|
|
|
114,424 |
|
|
|
105,546 |
|
|
|
-0.2 |
|
|
|
8.1 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(38,108 |
) |
|
|
(40,543 |
) |
|
|
(15,153 |
) |
|
|
6.0 |
|
|
|
-151.5 |
|
Unearned employee stock ownership plan (ESOP) shares |
|
|
(7,749 |
) |
|
|
(7,913 |
) |
|
|
(8,407 |
) |
|
|
2.1 |
|
|
|
7.8 |
|
Total parent's shareholders' equity |
|
|
163,712 |
|
|
|
161,573 |
|
|
|
178,559 |
|
|
|
1.3 |
|
|
|
-8.3 |
|
Noncontrolling interest in Quin Ventures, Inc. |
|
|
(3,376 |
) |
|
|
(3,291 |
) |
|
|
(783 |
) |
|
|
-2.6 |
|
|
|
-331.2 |
|
Total shareholders' equity |
|
|
160,336 |
|
|
|
158,282 |
|
|
|
177,776 |
|
|
|
1.3 |
|
|
|
-9.8 |
|
Total liabilities and shareholders' equity |
|
$ |
2,172,094 |
|
|
$ |
2,042,070 |
|
|
$ |
1,944,282 |
|
|
|
6.4 |
% |
|
|
11.7 |
% |
FIRST NORTHWEST BANCORP AND SUBSIDIARYCONSOLIDATED
STATEMENTS OF INCOME(Dollars in thousands, except per share data)
(Unaudited) |
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
March 31, 2022 |
|
|
Three Month Change |
|
|
One Year Change |
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans receivable |
|
$ |
19,504 |
|
|
$ |
20,240 |
|
|
$ |
14,536 |
|
|
|
-3.6 |
% |
|
|
34.2 |
% |
Interest on investment securities |
|
|
3,182 |
|
|
|
3,059 |
|
|
|
2,275 |
|
|
|
4.0 |
|
|
|
39.9 |
|
Interest on deposits in banks |
|
|
404 |
|
|
|
173 |
|
|
|
38 |
|
|
|
133.5 |
|
|
|
963.2 |
|
FHLB dividends |
|
|
192 |
|
|
|
189 |
|
|
|
52 |
|
|
|
1.6 |
|
|
|
269.2 |
|
Total interest income |
|
|
23,282 |
|
|
|
23,661 |
|
|
|
16,901 |
|
|
|
-1.6 |
|
|
|
37.8 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
4,353 |
|
|
|
2,434 |
|
|
|
717 |
|
|
|
78.8 |
|
|
|
507.1 |
|
Borrowings |
|
|
2,624 |
|
|
|
2,297 |
|
|
|
698 |
|
|
|
14.2 |
|
|
|
275.9 |
|
Total interest expense |
|
|
6,977 |
|
|
|
4,731 |
|
|
|
1,415 |
|
|
|
47.5 |
|
|
|
393.1 |
|
Net interest income |
|
|
16,305 |
|
|
|
18,930 |
|
|
|
15,486 |
|
|
|
-13.9 |
|
|
|
5.3 |
|
(Recapture of) provision for credit losses |
|
|
(500 |
) |
|
|
285 |
|
|
|
— |
|
|
|
-275.4 |
|
|
|
100.0 |
|
Net interest income after (recapture of) provision for credit
losses |
|
|
16,805 |
|
|
|
18,645 |
|
|
|
15,486 |
|
|
|
-9.9 |
|
|
|
8.5 |
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and deposit service fees |
|
|
1,141 |
|
|
|
1,163 |
|
|
|
1,173 |
|
|
|
-1.9 |
|
|
|
-2.7 |
|
Sold loan servicing fees and servicing right mark-to-market |
|
|
493 |
|
|
|
202 |
|
|
|
432 |
|
|
|
144.1 |
|
|
|
14.1 |
|
Net gain on sale of loans |
|
|
176 |
|
|
|
55 |
|
|
|
253 |
|
|
|
220.0 |
|
|
|
-30.4 |
|
Net gain on sale of investment securities |
|
|
— |
|
|
|
— |
|
|
|
126 |
|
|
|
n/a |
|
|
|
-100.0 |
|
Increase in cash surrender value of bank-owned life insurance |
|
|
226 |
|
|
|
230 |
|
|
|
252 |
|
|
|
-1.7 |
|
|
|
-10.3 |
|
Income from death benefit on bank-owned life insurance, net |
|
|
— |
|
|
|
1,489 |
|
|
|
— |
|
|
|
-100.0 |
|
|
|
n/a |
|
Other income |
|
|
298 |
|
|
|
229 |
|
|
|
167 |
|
|
|
30.1 |
|
|
|
78.4 |
|
Total noninterest income |
|
|
2,334 |
|
|
|
3,368 |
|
|
|
2,403 |
|
|
|
-30.7 |
|
|
|
-2.9 |
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
7,837 |
|
|
|
8,357 |
|
|
|
8,803 |
|
|
|
-6.2 |
|
|
|
-11.0 |
|
Data processing |
|
|
2,038 |
|
|
|
2,119 |
|
|
|
1,772 |
|
|
|
-3.8 |
|
|
|
15.0 |
|
Occupancy and equipment |
|
|
1,209 |
|
|
|
1,300 |
|
|
|
1,167 |
|
|
|
-7.0 |
|
|
|
3.6 |
|
Supplies, postage, and telephone |
|
|
355 |
|
|
|
333 |
|
|
|
313 |
|
|
|
6.6 |
|
|
|
13.4 |
|
Regulatory assessments and state taxes |
|
|
389 |
|
|
|
372 |
|
|
|
361 |
|
|
|
4.6 |
|
|
|
7.8 |
|
Advertising |
|
|
1,041 |
|
|
|
486 |
|
|
|
752 |
|
|
|
114.2 |
|
|
|
38.4 |
|
Professional fees |
|
|
806 |
|
|
|
762 |
|
|
|
559 |
|
|
|
5.8 |
|
|
|
44.2 |
|
FDIC insurance premium |
|
|
257 |
|
|
|
235 |
|
|
|
223 |
|
|
|
9.4 |
|
|
|
15.2 |
|
Other expense |
|
|
939 |
|
|
|
1,179 |
|
|
|
881 |
|
|
|
-20.4 |
|
|
|
6.6 |
|
Total noninterest expense |
|
|
14,871 |
|
|
|
15,143 |
|
|
|
14,831 |
|
|
|
-1.8 |
|
|
|
0.3 |
|
Income before provision for income taxes |
|
|
4,268 |
|
|
|
6,870 |
|
|
|
3,058 |
|
|
|
-37.9 |
|
|
|
39.6 |
|
Provision for income
taxes |
|
|
825 |
|
|
|
1,008 |
|
|
|
554 |
|
|
|
-18.2 |
|
|
|
48.9 |
|
Net income |
|
|
3,443 |
|
|
|
5,862 |
|
|
|
2,504 |
|
|
|
-41.3 |
|
|
|
37.5 |
|
Net loss attributable to
noncontrolling interest in Quin Ventures, Inc. |
|
|
85 |
|
|
|
198 |
|
|
|
302 |
|
|
|
-57.1 |
|
|
|
-71.9 |
|
Net income attributable to
parent |
|
$ |
3,528 |
|
|
$ |
6,060 |
|
|
$ |
2,806 |
|
|
|
-41.8 |
% |
|
|
25.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per
common share |
|
$ |
0.39 |
|
|
$ |
0.66 |
|
|
$ |
0.30 |
|
|
|
-40.9 |
% |
|
|
30.0 |
% |
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 |
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
Performance ratios: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.70 |
% |
|
|
1.18 |
% |
|
|
0.85 |
% |
|
|
0.51 |
% |
|
|
0.60 |
% |
Return on average equity |
|
|
8.98 |
|
|
|
15.26 |
|
|
|
10.12 |
|
|
|
5.75 |
|
|
|
6.01 |
|
Average interest rate
spread |
|
|
3.14 |
|
|
|
3.72 |
|
|
|
3.72 |
|
|
|
3.65 |
|
|
|
3.43 |
|
Net interest margin (2) |
|
|
3.46 |
|
|
|
3.96 |
|
|
|
3.88 |
|
|
|
3.77 |
|
|
|
3.53 |
|
Efficiency ratio (3) |
|
|
79.8 |
|
|
|
67.9 |
|
|
|
74.9 |
|
|
|
87.2 |
|
|
|
82.9 |
|
Equity to total assets |
|
|
7.38 |
|
|
|
7.75 |
|
|
|
7.49 |
|
|
|
8.13 |
|
|
|
9.14 |
|
Average interest-earning
assets to average interest-bearing liabilities |
|
|
122.4 |
|
|
|
124.8 |
|
|
|
128.6 |
|
|
|
130.0 |
|
|
|
132.3 |
|
Book value per common
share |
|
$ |
16.57 |
|
|
$ |
16.31 |
|
|
$ |
15.69 |
|
|
$ |
16.60 |
|
|
$ |
17.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible performance
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets (4) |
|
$ |
2,170,202 |
|
|
$ |
2,040,267 |
|
|
$ |
2,089,454 |
|
|
$ |
2,029,702 |
|
|
$ |
1,942,151 |
|
Tangible common equity
(4) |
|
|
158,444 |
|
|
|
156,479 |
|
|
|
154,612 |
|
|
|
163,224 |
|
|
|
175,645 |
|
Tangible common equity ratio
(4) |
|
|
7.30 |
% |
|
|
7.67 |
% |
|
|
7.40 |
% |
|
|
8.04 |
% |
|
|
9.04 |
% |
Return on tangible common
equity (4) |
|
|
9.08 |
|
|
|
15.45 |
|
|
|
10.23 |
|
|
|
5.82 |
|
|
|
6.09 |
|
Tangible book value per common
share (4) |
|
$ |
16.38 |
|
|
$ |
16.13 |
|
|
$ |
15.50 |
|
|
$ |
16.40 |
|
|
$ |
17.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total
assets at end of period (5) |
|
|
0.12 |
% |
|
|
0.09 |
% |
|
|
0.17 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
Nonperforming loans to total
loans (6) |
|
|
0.17 |
|
|
|
0.12 |
|
|
|
0.22 |
|
|
|
0.08 |
|
|
|
0.09 |
|
Allowance for credit losses on
loans to nonperforming loans (6) |
|
|
660.69 |
|
|
|
900.34 |
|
|
|
462.70 |
|
|
|
1268.90 |
|
|
|
1226.85 |
|
Allowance for credit losses on
loans to total loans |
|
|
1.10 |
|
|
|
1.04 |
|
|
|
1.06 |
|
|
|
1.07 |
|
|
|
1.09 |
|
Annualized net charge-offs
(recoveries) to average outstanding loans |
|
|
0.25 |
|
|
|
0.11 |
|
|
|
0.06 |
|
|
|
(0.03 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios (First
Fed Bank): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
|
|
10.4 |
% |
|
|
10.4 |
% |
|
|
10.5 |
% |
|
|
10.4 |
% |
|
|
10.6 |
% |
Common equity Tier 1
capital |
|
|
13.3 |
|
|
|
13.4 |
|
|
|
13.1 |
|
|
|
13.2 |
|
|
|
13.7 |
|
Tier 1 risk-based |
|
|
13.3 |
|
|
|
13.4 |
|
|
|
13.1 |
|
|
|
13.2 |
|
|
|
13.7 |
|
Total risk-based |
|
|
14.4 |
|
|
|
14.4 |
|
|
|
14.2 |
|
|
|
14.2 |
|
|
|
14.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total assets |
|
$ |
2,050,210 |
|
|
$ |
2,039,016 |
|
|
$ |
1,996,765 |
|
|
$ |
1,963,665 |
|
|
$ |
1,899,717 |
|
Average total loans |
|
|
1,552,299 |
|
|
|
1,554,276 |
|
|
|
1,500,508 |
|
|
|
1,455,038 |
|
|
|
1,345,279 |
|
Average interest-earning
assets |
|
|
1,909,271 |
|
|
|
1,895,799 |
|
|
|
1,859,396 |
|
|
|
1,836,202 |
|
|
|
1,777,704 |
|
Average noninterest-bearing
deposits |
|
|
294,235 |
|
|
|
326,450 |
|
|
|
342,944 |
|
|
|
344,827 |
|
|
|
328,304 |
|
Average interest-bearing deposits |
|
|
1,288,429 |
|
|
|
1,243,185 |
|
|
|
1,224,548 |
|
|
|
1,223,888 |
|
|
|
1,221,323 |
|
Average interest-bearing liabilities |
|
|
1,559,983 |
|
|
|
1,519,106 |
|
|
|
1,446,428 |
|
|
|
1,412,327 |
|
|
|
1,343,216 |
|
Average equity |
|
|
159,319 |
|
|
|
157,590 |
|
|
|
168,264 |
|
|
|
173,584 |
|
|
|
189,455 |
|
Average shares -- basic |
|
|
8,911,294 |
|
|
|
9,069,493 |
|
|
|
9,093,821 |
|
|
|
9,094,894 |
|
|
|
9,130,168 |
|
Average shares -- diluted |
|
|
8,939,601 |
|
|
|
9,106,453 |
|
|
|
9,138,123 |
|
|
|
9,166,131 |
|
|
|
9,225,368 |
|
(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 SUBSIDIARYADDITIONAL
INFORMATION(Dollars in thousands) (Unaudited) |
|
|
|
Selected
loan detail: |
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
March 31, 2022 |
|
|
Three Month Change |
|
|
One Year Change |
|
|
|
(In thousands) |
|
Commercial business loans breakout |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP loans |
|
$ |
72 |
|
|
$ |
86 |
|
|
$ |
6,992 |
|
|
$ |
(14 |
) |
|
$ |
(6,920 |
) |
Secured lines of credit |
|
|
30,723 |
|
|
|
15,279 |
|
|
|
10,988 |
|
|
|
15,444 |
|
|
|
19,735 |
|
Unsecured lines of credit |
|
|
588 |
|
|
|
1,276 |
|
|
|
2,300 |
|
|
|
(688 |
) |
|
|
(1,712 |
) |
SBA loans |
|
|
8,805 |
|
|
|
8,056 |
|
|
|
4,349 |
|
|
|
749 |
|
|
|
4,456 |
|
Other commercial business
loans |
|
|
59,798 |
|
|
|
52,230 |
|
|
|
29,150 |
|
|
|
7,568 |
|
|
|
30,648 |
|
Total commercial business
loans |
|
$ |
99,986 |
|
|
$ |
76,927 |
|
|
$ |
53,779 |
|
|
$ |
23,059 |
|
|
$ |
46,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto and other
consumer loans breakout |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Triad Manufactured Home
loans |
|
$ |
102,424 |
|
|
$ |
89,011 |
|
|
$ |
88,563 |
|
|
$ |
13,413 |
|
|
$ |
13,861 |
|
Woodside auto loans |
|
|
123,337 |
|
|
|
122,961 |
|
|
|
108,106 |
|
|
|
376 |
|
|
|
15,231 |
|
First Help auto loans |
|
|
6,281 |
|
|
|
5,084 |
|
|
|
7,215 |
|
|
|
1,197 |
|
|
|
(934 |
) |
Other auto loans |
|
|
7,350 |
|
|
|
8,182 |
|
|
|
12,379 |
|
|
|
(832 |
) |
|
|
(5,029 |
) |
Other consumer loans |
|
|
11,910 |
|
|
|
13,675 |
|
|
|
5,045 |
|
|
|
(1,765 |
) |
|
|
6,865 |
|
Total auto and other consumer
loans |
|
$ |
251,302 |
|
|
$ |
238,913 |
|
|
$ |
221,308 |
|
|
$ |
12,389 |
|
|
$ |
29,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
loans breakout |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family construction |
|
$ |
87,269 |
|
|
$ |
77,138 |
|
|
$ |
70,827 |
|
|
$ |
10,131 |
|
|
$ |
16,442 |
|
Multifamily construction |
|
|
51,788 |
|
|
|
76,345 |
|
|
|
83,206 |
|
|
|
(24,557 |
) |
|
|
(31,418 |
) |
Acquisition-renovation |
|
|
7,096 |
|
|
|
19,247 |
|
|
|
31,066 |
|
|
|
(12,151 |
) |
|
|
(23,970 |
) |
Nonresidential
construction |
|
|
6,909 |
|
|
|
9,218 |
|
|
|
10,712 |
|
|
|
(2,309 |
) |
|
|
(3,803 |
) |
Land and development |
|
|
8,600 |
|
|
|
11,698 |
|
|
|
12,045 |
|
|
|
(3,098 |
) |
|
|
(3,445 |
) |
Total construction and land
loans |
|
$ |
161,662 |
|
|
$ |
193,646 |
|
|
$ |
207,856 |
|
|
$ |
(31,984 |
) |
|
$ |
(46,194 |
) |
|
|
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:
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
|
(Dollars in thousands, except per share data) |
|
Total shareholders' equity |
|
$ |
160,336 |
|
|
$ |
158,282 |
|
|
$ |
156,599 |
|
|
$ |
165,154 |
|
|
$ |
177,776 |
|
Less: Goodwill and other
intangible assets |
|
|
1,088 |
|
|
|
1,089 |
|
|
|
1,173 |
|
|
|
1,176 |
|
|
|
1,180 |
|
Disallowed non-mortgage loan servicing rights |
|
|
804 |
|
|
|
714 |
|
|
|
814 |
|
|
|
754 |
|
|
|
951 |
|
Total tangible common
equity |
|
$ |
158,444 |
|
|
$ |
156,479 |
|
|
$ |
154,612 |
|
|
$ |
163,224 |
|
|
$ |
175,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,172,094 |
|
|
$ |
2,042,070 |
|
|
$ |
2,091,441 |
|
|
$ |
2,031,632 |
|
|
$ |
1,944,282 |
|
Less: Goodwill and other
intangible assets |
|
|
1,088 |
|
|
|
1,089 |
|
|
|
1,173 |
|
|
|
1,176 |
|
|
|
1,180 |
|
Disallowed non-mortgage loan servicing rights |
|
|
804 |
|
|
|
714 |
|
|
|
814 |
|
|
|
754 |
|
|
|
951 |
|
Total tangible assets |
|
$ |
2,170,202 |
|
|
$ |
2,040,267 |
|
|
$ |
2,089,454 |
|
|
$ |
2,029,702 |
|
|
$ |
1,942,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
|
$ |
159,319 |
|
|
$ |
157,590 |
|
|
$ |
168,264 |
|
|
$ |
173,584 |
|
|
$ |
189,455 |
|
Less: Average goodwill and
other intangible assets |
|
|
1,089 |
|
|
|
1,171 |
|
|
|
1,175 |
|
|
|
1,179 |
|
|
|
1,182 |
|
Average disallowed non-mortgage loan servicing rights |
|
|
715 |
|
|
|
813 |
|
|
|
755 |
|
|
|
949 |
|
|
|
1,381 |
|
Total average tangible common
equity |
|
$ |
157,515 |
|
|
$ |
155,606 |
|
|
$ |
166,334 |
|
|
$ |
171,456 |
|
|
$ |
186,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity ratio
(1) |
|
|
7.30 |
% |
|
|
7.67 |
% |
|
|
7.40 |
% |
|
|
8.04 |
% |
|
|
9.04 |
% |
Net income |
|
$ |
3,528 |
|
|
$ |
6,060 |
|
|
$ |
4,291 |
|
|
$ |
2,488 |
|
|
$ |
2,806 |
|
Return on tangible common
equity (1) |
|
|
9.08 |
% |
|
|
15.45 |
% |
|
|
10.23 |
% |
|
|
5.82 |
% |
|
|
6.09 |
% |
Common shares outstanding |
|
|
9,674,055 |
|
|
|
9,703,581 |
|
|
|
9,978,041 |
|
|
|
9,950,172 |
|
|
|
10,003,622 |
|
Tangible book value per common
share (1) |
|
$ |
16.38 |
|
|
$ |
16.13 |
|
|
$ |
15.50 |
|
|
$ |
16.40 |
|
|
$ |
17.56 |
|
GAAP Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets |
|
|
7.38 |
% |
|
|
7.75 |
% |
|
|
7.49 |
% |
|
|
8.13 |
% |
|
|
9.14 |
% |
Return on average equity |
|
|
8.98 |
% |
|
|
15.26 |
% |
|
|
10.12 |
% |
|
|
5.75 |
% |
|
|
6.01 |
% |
Book value per common share |
|
$ |
16.57 |
|
|
$ |
16.31 |
|
|
$ |
15.69 |
|
|
$ |
16.60 |
|
|
$ |
17.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
First Northwest Bancorp (NASDAQ:FNWB)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
First Northwest Bancorp (NASDAQ:FNWB)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024