Core Viewpoint - First Financial Northwest, Inc. has declared a final cash liquidation distribution of $1.30 per share as part of its Plan of Dissolution, totaling $23.30 per share distributed to shareholders [1][2]. Group 1: Cash Liquidation Distribution - The final cash liquidation distribution will be payable on December 12, 2025, to shareholders of record as of April 23, 2025 [1]. - The total cash distributions to shareholders, including the final distribution, amount to approximately $215 million [2]. Group 2: Shareholder Requirements - Shareholders holding physical stock certificates must convert them to book-entry accounts to receive their cash liquidation distributions [3]. - Georgeson LLC has been retained to assist in locating shareholders who have not responded to previous communications regarding their shares [3]. Group 3: Tax Implications - Cash liquidation distributions will be reported on Form 1099-DIV for the tax year 2025, with U.S. shareholders recognizing gain or loss based on the difference between cash received and their adjusted tax basis [4]. - Long-term capital gains for non-corporate U.S. holders are generally subject to preferential tax rates [4]. Group 4: Company Background - First Financial Northwest, Inc. is the former holding company of First Financial Northwest Bank, which was sold to Global Federal Credit Union on April 11, 2025 [6]. - The company has delisted its common stock from trading on the Nasdaq Capital Market and closed its stock transfer books effective April 21, 2025, as part of its voluntary dissolution [6].

Core Points - First Financial Northwest, Inc. has declared an initial liquidating distribution of $22.00 per share, totaling approximately $203 million, which represents about 95% of the expected proceeds to be distributed [1] - The initial distribution will be payable on April 30, 2025, to shareholders of record as of April 23, 2025 [1] - The company has closed its stock transfer books and filed a Form 25 with the SEC for delisting its common stock from the Nasdaq Capital Market [1] - A final cash distribution to shareholders is planned after the company completes its wind-down and settles its debts, with estimated total distributions ranging from $23.06 to $23.34 per share [2] Company Overview - First Financial Northwest, Inc. is the former parent company of First Financial Northwest Bank, a commercial bank based in Renton, Washington [3]

分组1 - The Company has declared an initial liquidating distribution of $22.00 per share, totaling approximately $203 million, which represents about 95% of the anticipated proceeds to be distributed [1] - The initial distribution will be payable on April 30, 2025, to shareholders of record as of April 23, 2025 [1] - The Company has closed its stock transfer books and filed a Form 25 with the SEC for delisting its common stock from the Nasdaq Capital Market [1] 分组2 - The Company plans to make a final cash distribution to shareholders after settling debts and obligations, with estimated total distributions ranging from $23.06 to $23.34 per share [2] - The timeline for the final liquidating distribution is currently undetermined [2] - Computershare is acting as the paying agent for the liquidating distributions [2] 分组3 - First Financial Northwest, Inc. is the former parent company of First Financial Northwest Bank, a commercial bank based in Renton, Washington [3]

Group 1 - First Financial Northwest, Inc. has completed the transaction where Global Federal Credit Union acquired substantially all assets and liabilities of First Financial Northwest Bank, receiving $228.7 million in cash [1] - The company intends to delist its common stock from the Nasdaq Stock Market effective April 21, 2025, after which shareholders will be unable to transfer their shares [2] - The company plans to distribute its remaining assets to shareholders in two or more distributions, with an initial distribution expected around April 30, 2025 [3][4] Group 2 - Following the distributions, the company expects to dissolve in accordance with Washington law [4] - Prior to the transaction, First Financial Northwest, Inc. was the parent company of First Financial Northwest Bank, a commercial bank based in Renton, Washington [5]

Financial Performance and Capital Management - As of December 31, 2024, the company had seven interest rate swaps with an aggregate notional amount of $100.0 million and a fair value gain of $6.3 million, compared to eight swaps with a notional amount of $115.0 million and a gain of $7.6 million at December 31, 2023[138]. - The company paid $692,000 in FDIC assessments for the year ending December 31, 2024[155]. - As of December 31, 2024, the Bank met the requirements to be classified as "well capitalized" and satisfied the fully phased-in capital conservation buffer requirement[164]. - The capital regulations require a CET1 capital ratio of at least 4.5%, a Tier 1 capital ratio of at least 6%, and a total capital ratio of at least 8%[159]. - As of December 31, 2024, the Bank's Tier 1 leverage capital was $160,671, representing a ratio of 11.16%, up from 10.18% in 2023[166]. - The Common Equity Tier 1 capital increased to $160,671, with a ratio of 15.40%, compared to 14.90% in the previous year[166]. - Total risk-based capital reached $173,748, reflecting a ratio of 16.65%, an increase from 16.15% in 2023[166]. - The Bank's excess Tier 1 risk-based capital was $77,186, which is 7.40% above the required capital[166]. - The Bank was categorized as "well capitalized" under FDIC regulations as of December 31, 2024[170]. - The Bank's compliance with reserve requirements was confirmed as of December 31, 2024[179]. Workforce and Employment - As of December 31, 2024, the company had 135 full-time employees, with a workforce composition of 63.0% female and 37.0% male, and women held 51.9% of management roles[144]. - The average tenure of mid-level officers and managers is 5.2 years, while the average tenure of executive/senior level officers is 10.8 years[144]. Regulatory Compliance and Taxation - The FDIC adopted a special assessment for banking organizations with total assets of $5.0 billion or more, at an annual rate of approximately 13.4 basis points, beginning in 2024[154]. - The Company is subject to a business and occupation tax in Washington state at a rate of 1.75% of gross receipts for the Bank, and 1.50% for other subsidiaries with gross receipts less than $1.0 million[207]. - The tax years still open for review by the Internal Revenue Service are 2021 through 2024[202]. - First Financial Northwest is subject to comprehensive regulation by the Federal Reserve under the Bank Holding Company Act, requiring semi-annual reports and compliance with various regulations[193]. - As of the change effective August 30, 2018, bank holding companies with less than $3 billion in consolidated assets, including First Financial Northwest, are generally no longer subject to the Federal Reserve's capital regulations[198]. - First Financial Northwest was considered "well capitalized" with a total risk-based capital ratio of 10.0% or more and a Tier 1 risk-based capital ratio of 8.0% or more at the time of the regulatory change[198]. - The Federal Reserve has a policy that a bank holding company must maintain an adequate capital position and should not pay cash dividends unless net income is sufficient to fund them[199]. Risk Management and Operational Challenges - The company employs asset and liability management strategies to mitigate interest rate risk, but unexpected rate changes could materially affect financial condition and results of operations[248]. - The implementation of the CECL model may introduce increased earnings volatility due to the forward-looking approach in estimating expected credit losses[260]. - Non-compliance with regulations such as the USA PATRIOT Act could result in fines or sanctions, adversely affecting the company’s financial condition and reputation[256]. - The company is exposed to risks related to its corporate bond portfolio, particularly from securities issued by other financial institutions, which could impact financial condition if market perception deteriorates[254]. - The company’s security measures may not be sufficient to prevent cyber-attacks, which could jeopardize confidential information and lead to significant reputational damage[261]. - The company’s risk management framework aims to balance risk and return, but inherent limitations may lead to unexpected losses if not effectively managed[257]. - The fair value of the company’s investment securities is susceptible to significant shifts due to factors beyond its control, potentially leading to credit losses[252]. - The company’s reliance on third-party vendors for data processing could expose it to operational risks, including system failures and security breaches[263]. - The company faces significant risks associated with the increasing adoption of Artificial Intelligence (AI), including model risk and cybersecurity threats[265]. - Operational risks may arise from potential system failures and over-reliance on AI, impacting critical functions like fraud detection and customer support[266]. - Effective data management and aggregation are crucial, as manual processes may lead to human error and limit the company's ability to manage risks[268]. - The prevalence of fraud and financial crimes has increased nationally, leading to potential financial losses and reputational damage for the company[270]. - The company relies on external vendors for key operations, exposing it to risks if vendors fail to meet contractual obligations[271]. - Effective liquidity management is essential, as an inability to raise funds could severely impact the company's operations and financial condition[272]. - The company may need to raise additional capital in the future, which could be challenging depending on market conditions and financial performance[273]. - The company is dependent on dividends from the Bank for its revenue, and any inability of the Bank to pay dividends could affect its financial obligations[276]. - Increasing scrutiny regarding environmental, social, and governance (ESG) practices may impose additional costs and risks on the company[277]. - The pending Global transaction poses uncertainties and contractual restrictions that could adversely affect the company's operations and relationships[279]. Market Position and Competition - The Bank's share of aggregate deposits in the Seattle-Tacoma-Bellevue metropolitan area is less than 1%, while the top five banks control 71% of the deposit market[141]. - The Bank's aggregate recorded loan balances for construction, land development, and land loans were 40.5% of regulatory capital as of December 31, 2024[175]. - Loans on commercial real estate were 300.8% of regulatory capital, indicating significant exposure[175]. - The Bank received $597,000 in dividends from the Federal Home Loan Bank during the year ended December 31, 2024[171]. - First Financial Northwest did not repurchase any of its outstanding common stock during the year ended December 31, 2024[201].

Core Viewpoint - Global Federal Credit Union is set to acquire substantially all assets and liabilities of First Financial Northwest Bank, with the transaction expected to close on April 11, 2025 [1][2]. Group 1: Acquisition Details - The acquisition involves Global assuming substantially all liabilities, including deposit liabilities, of First Financial Northwest Bank as per the Purchase and Assumption Agreement dated January 10, 2024 [1]. - Following the asset sale, First Financial Northwest will wind up its affairs, distribute remaining net assets to shareholders, and dissolve under Washington law [2]. - The cash consideration for shareholders is expected to be distributed in multiple payments, with an initial distribution occurring soon after the transaction's completion [2]. Group 2: Operational Changes - Global will operate the Bank's locations as a separately branded division until the integration of systems and branding is completed later in 2025 [3]. Group 3: Company Backgrounds - Global Federal Credit Union, founded in 1948, serves over 750,000 members across multiple states and military installations [4]. - First Financial Northwest, Inc. is the parent company of an FDIC-insured commercial bank headquartered in Renton, Washington, serving the Puget Sound Region [5].

Core Points - Global Federal Credit Union has received regulatory approval from the National Credit Union Administration for its acquisition of substantially all assets and liabilities of First Financial Northwest Bank [1][2] - The Asset Sale is expected to be completed in early Q2 2025, with Global operating the Bank's locations as a separate division until brand integration is finalized later in 2025 [2][3] - The transaction aims to enhance Global's business services and branch presence in Western Washington, benefiting First Financial Northwest Bank customers by providing access to Global's extensive offerings [2][4] Company Information - Global Federal Credit Union is a not-for-profit financial cooperative founded in 1948, serving over 750,000 members across multiple states and military installations [4] - First Financial Northwest, Inc. is the parent company of First Financial Northwest Bank, a Washington State-chartered commercial bank with 15 full-service offices in the Puget Sound Region [5]

Core Viewpoint - First Financial Northwest (FFNW) reported quarterly earnings of $0.13 per share, significantly exceeding the Zacks Consensus Estimate of $0.05 per share, representing an earnings surprise of 160% [1] Financial Performance - The company posted revenues of $9.1 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.28%, compared to year-ago revenues of $9.91 million [2] - Over the last four quarters, FFNW has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - First Financial shares have declined approximately 2.1% since the beginning of the year, while the S&P 500 has gained 2.2% [3] - The current status of estimate revisions is unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $9.39 million, and for the current fiscal year, it is $0.27 on revenues of $39.6 million [7] - The earnings outlook is crucial for investors, as it reflects current consensus expectations and any recent changes [4] Industry Context - The Zacks Industry Rank for Banks - West is in the top 28% of over 250 Zacks industries, suggesting that the industry is performing relatively well [8] - First Northwest Bancorp (FNWB), another company in the same industry, is expected to report quarterly earnings of $0.06 per share, reflecting a year-over-year change of +400% [9]

Financial Performance - Net income for Q4 2024 was $1.2 million, or $0.13 per diluted share, compared to a net loss of $608,000 in Q3 2024[2]. - For the year ended December 31, 2024, net income was $1.1 million, or $0.12 per diluted share, down from $6.3 million, or $0.69 per diluted share in 2023[2][6]. - Net income for the quarter was $1,200,000, compared to a loss of $608,000 in the previous quarter, reflecting a significant turnaround[30]. - Basic earnings per share for the quarter was $0.13, consistent with the previous year[30]. - Basic earnings per share decreased to $0.12 in 2024 from $0.69 in 2023[32]. - Return on assets improved to 0.33% for the quarter ended December 31, 2024, compared to (0.17)% in the previous quarter[35]. - Return on assets decreased to 0.07% in 2024 from 0.41% in 2023[42]. - Return on equity fell to 0.66 in 2024 compared to 3.93 in 2023[42]. Loan and Deposit Activity - Total deposits decreased by $36.0 million to $1.13 billion at December 31, 2024, compared to $1.17 billion at September 30, 2024[7]. - Nonaccrual loans totaled $842,000, representing 0.07% of the total loan portfolio of $1.16 billion as of December 31, 2024[4][12]. - Net loans receivable increased to $1.14 billion at December 31, 2024, from $1.13 billion at September 30, 2024[12]. - Total loans amounted to $1,155,252 million as of December 31, 2024, a decrease from $1,191,231 million in December 2023[33]. - Nonaccrual loans amounted to $842,000 at December 31, 2024, a decrease from $853,000 at September 30, 2024, and an increase from $220,000 at December 31, 2023[14]. - Total deposits fell by 3.1% from the previous quarter to $1,131,400,000, and decreased by 5.3% compared to the same period last year[28]. Interest Income and Expense - Net interest income for the quarter ended December 31, 2024, was $8.4 million, compared to $8.5 million for the previous quarter and $9.3 million for the same quarter in 2023[15]. - Total interest income decreased by $419,000 to $19.0 million for the quarter ended December 31, 2024, compared to $19.4 million for the previous quarter and $20.3 million for the same quarter in 2023[16]. - Total interest expense was $10.6 million for the quarter ended December 31, 2024, down from $11.0 million for both the previous quarter and the same quarter in 2023[18]. - Interest income from loans decreased by 0.9% quarter-over-quarter to $16,512,000, and by 3.7% year-over-year[30]. - Interest expense on deposits increased by 2.1% quarter-over-quarter to $9,956,000[30]. - Total interest income decreased by 1.0% to $77,370 million in 2024 from $78,158 million in 2023[32]. - Net interest income fell by 14.3% to $34,763 million in 2024 compared to $40,543 million in 2023[32]. Noninterest Income and Expense - Noninterest income for the quarter ended December 31, 2024, totaled $658,000, down from $677,000 for the previous quarter and up from $633,000 for the same quarter in 2023[21]. - Noninterest income decreased by 2.8% quarter-over-quarter to $658,000, with wealth management revenue increasing by 109.5%[30]. - Noninterest expense increased to $8.9 million for the quarter ended December 31, 2024, compared to $8.5 million for the previous quarter and $8.4 million for the same quarter in 2023[22]. - Total noninterest expense rose by 2.9% to $36,693 million in 2024 compared to $35,666 million in 2023[32]. Capital and Ratios - Tier 1 leverage and total capital ratios were 11.2% and 16.7% at December 31, 2024, compared to 10.9% and 16.7% at September 30, 2024[12]. - The allowance for credit losses (ACL) was 1.30% of total loans receivable as of December 31, 2024, down from 1.42% at September 30, 2024, and up from 1.28% at December 31, 2023[13]. - The efficiency ratio increased to 98.20% from 92.96% in the prior quarter, indicating a decline in operational efficiency[35]. - Total capital ratio increased to 16.65% in 2024 from 16.15% in 2023[42]. Asset Management - Total assets decreased by 1.8% quarter-over-quarter to $1,424,889,000 and by 5.3% year-over-year[28]. - Cash on hand and in banks increased by 13.2% quarter-over-quarter to $9,535,000[28]. - Total stockholders' equity (GAAP) for 2024 is $161,555,000, a slight decrease from $161,660,000 in 2023[50]. - Tangible assets (Non-GAAP) for 2024 are $1,423,705,000, down from $1,503,774,000 in 2023[50]. Future Transactions - The company is preparing for the sale of the Bank to Global Federal Credit Union, pending final regulatory approval[5]. - The company is in a pending transaction with Global Federal Credit Union to acquire substantially all of the assets and assume substantially all of the liabilities of the Bank[24].

Core Viewpoint - First Financial Northwest, Inc. reported a net income of $1.2 million for Q4 2024, a significant recovery from a net loss of $608,000 in Q3 2024, and consistent with the net income of $1.2 million in Q4 2023. However, the annual net income for 2024 decreased to $1.1 million from $6.3 million in 2023 [1][6]. Financial Performance - The improved performance in Q4 2024 was primarily due to a $1.3 million recapture of provision for credit losses, contrasting with a provision of $1.6 million in the previous quarter [2]. - Net loans receivable increased by $14.0 million in Q4 2024, totaling $1.14 billion, while nonaccrual loans remained low at $842,000, representing 0.07% of the total loan portfolio of $1.16 billion [3][6]. Deposits and Funding - Total deposits decreased by $36.0 million to $1.13 billion at December 31, 2024, compared to $1.17 billion at September 30, 2024, and a decrease of $62.7 million from $1.19 billion at December 31, 2023. The decline was mainly due to decreases in noninterest-bearing demand deposits and money market deposits [4][7]. - Federal Home Loan Bank (FHLB) advances increased to $110.0 million at December 31, 2024, from $100.0 million at September 30, 2024, but decreased from $125.0 million at December 31, 2023 [5]. Interest Income and Expense - Net interest income for Q4 2024 was $8.4 million, slightly down from $8.5 million in Q3 2024 and $9.3 million in Q4 2023. The decrease was attributed to lower interest from earning assets [12][13]. - Total interest income decreased to $19.0 million in Q4 2024 from $19.4 million in Q3 2024 and $20.3 million in Q4 2023, primarily due to a decline in interest income from interest-earning deposits held with banks [14]. Noninterest Income and Expense - Noninterest income for Q4 2024 totaled $658,000, down from $677,000 in Q3 2024 but up from $633,000 in Q4 2023. The decrease was mainly due to lower loan and deposit-related fees [18]. - Noninterest expense increased to $8.9 million in Q4 2024 from $8.5 million in Q3 2024, primarily due to higher salaries and employee benefits [19][20]. Capital and Regulatory Matters - The company is preparing for the sale of the Bank to Global Federal Credit Union, pending final regulatory approval from the National Credit Union Administration [4]. - The allowance for credit losses represented 1.30% of total loans receivable at December 31, 2024, compared to 1.42% at September 30, 2024 [10].