Financial Performance - The Company reported a net loss of $608,000, or $(0.07) per diluted share, for Q3 2024, compared to net income of $1.6 million, or $0.17 per diluted share, in Q2 2024[1]. - Net interest income for the quarter was $8.5 million, compared to $9.0 million for the previous quarter and $9.7 million for the same quarter last year[15]. - Net interest income after provision for credit losses decreased by 25.0% quarter-over-quarter to $6,879,000, and by 31.2% year-over-year[29]. - Noninterest income for the quarter totaled $677,000, slightly up from $673,000 in the previous quarter and unchanged from the same quarter last year[21]. - Noninterest expense increased to $8.5 million for the quarter ended September 30, 2024, compared to $7.9 million in the prior quarter and $8.8 million in the same period last year[22]. - The net loss for Q3 2024 was $608,000, representing a significant decline of 139.1% from a net income of $1,555,000 in Q2 2024[29]. Loan and Credit Quality - A provision for credit losses of $1.6 million was recorded, primarily related to two participation loans totaling $6.0 million classified as "substandard" since March 2022[2]. - Nonaccrual loans totaled $853,000, representing only 0.07% of the total loan portfolio of $1.14 billion, indicating strong credit quality[3]. - Nonaccrual loans decreased to $853,000 at September 30, 2024, from $4.7 million at June 30, 2024, and $201,000 at September 30, 2023[14]. - The allowance for credit losses (ACL) represented 1.42% of total loans receivable at September 30, 2024, compared to 1.29% at both June 30, 2024, and September 30, 2023[13]. - The allowance for credit losses (ACL) increased to $16,265,000 from $14,796,000 in Q2 2024[30]. - Nonaccrual loans as a percent of total loans improved to 0.07% in September 2024 from 0.41% in June 2024[31]. Deposits and Funding - Total deposits increased by $79.2 million to $1.17 billion at September 30, 2024, driven by an $81.9 million increase in retail certificates of deposit[7]. - Total deposits reached $1.17 billion as of September 30, 2024, a slight decrease from $1.18 billion at June 30, 2024, and $1.17 billion at September 30, 2023[12]. - Advances from the FHLB decreased to $100.0 million at September 30, 2024, down from $176.0 million at June 30, 2024, due to increased deposits[8]. - The average cost of interest-bearing deposits rose to 3.80% for the quarter ended September 30, 2024, up from 3.71% in the previous quarter[18]. - The cost of interest-bearing deposits increased to 3.80% from 3.71% in the previous quarter[32]. - The cost of total deposits increased to 3.47% from 3.38% in the previous quarter[32]. Capital and Equity - The Bank's Tier 1 leverage and total capital ratios were 10.9% and 16.7% respectively at September 30, 2024, showing improvement from the previous year[5]. - Total stockholders' equity as of September 30, 2024, was $160,213,000, a decrease of 0.3% from the previous quarter but an increase of 0.6% year-over-year[28]. - Tier 1 capital ratio remained stable at 15.43% in September 2024 compared to 14.75% in September 2023[31]. - Total capital ratio slightly increased to 16.68% in September 2024 from 16.00% in September 2023[31]. - The equity-to-assets ratio (GAAP) was 11.04%, slightly down from 11.10% in the previous quarter[34]. Asset Management - Total assets as of September 30, 2024, were $1,451,086,000, a slight increase of 0.2% from the previous quarter but a decrease of 4.9% year-over-year[26]. - Loans receivable net of allowance decreased to $1,126,146,000, down 0.8% from the previous quarter and 3.6% year-over-year[26]. - The loan portfolio totaled $1,142,411,000, a decrease of 0.6% from Q2 2024 and a decrease of 3.5% year-over-year[30]. - Average loans stood at $1,131,473 thousand, a slight decrease from $1,139,017 thousand in the prior quarter[32]. - Total interest-earning assets amounted to $1,365,573 thousand, up from $1,355,792 thousand in the previous quarter[32]. Interest Income and Expense - Total interest income was $19.4 million for the quarter, slightly up from $19.3 million in the previous quarter but down from $19.7 million a year ago[16]. - Total interest expense increased to $11.0 million for the quarter, compared to $10.3 million for the previous quarter and $10.0 million for the same quarter last year[18]. - The average yield on interest-earning assets decreased by 7 basis points to 5.66% during the quarter ended September 30, 2024[20]. - The average cost of interest-bearing liabilities increased by 13 basis points to 3.72% during the quarter[20]. - Yield on loans decreased to 5.86% during the recent quarter from 5.93% for the quarter ended June 30, 2024, but increased from 5.73% a year ago[17]. Future Transactions - The Company is preparing for a pending transaction with Global Federal Credit Union, awaiting final approval from the National Credit Union Administration[4]. - 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].
First Financial Northwest(FFNW) - 2024 Q3 - Quarterly Results