Core Viewpoint - First Financial Northwest, Inc. reported a net loss of $608,000 for Q3 2024, a significant decline from net income of $1.6 million in Q2 2024 and $1.5 million in Q3 2023, primarily due to a $1.6 million provision for credit losses [1][2]. Financial Performance - The net loss for the quarter was attributed to a $1.6 million provision for credit losses, mainly related to two participation loans totaling $6.0 million classified as "substandard" since March 2022 [2][3]. - For the nine months ended September 30, 2024, the Company reported a net loss of $128,000 compared to net income of $5.1 million for the same period in 2023 [1]. - Net interest income decreased to $8.5 million for Q3 2024, down from $9.0 million in Q2 2024 and $9.7 million in Q3 2023 [13]. - Total interest income was $19.4 million for Q3 2024, slightly up from $19.3 million in Q2 2024 but down from $19.7 million in Q3 2023 [14]. Credit Quality - The allowance for credit losses (ACL) represented 1.42% of total loans receivable as of September 30, 2024, compared to 1.29% at both June 30, 2024, and September 30, 2023 [11]. - Nonaccrual loans totaled $853,000 at September 30, 2024, a decrease from $4.7 million at June 30, 2024, and $201,000 at September 30, 2023 [12]. Deposits and Advances - Total deposits increased to $1.17 billion at September 30, 2024, from $1.09 billion at June 30, 2024, primarily due to an increase in retail certificates of deposit [5]. - Advances from the Federal Home Loan Bank (FHLB) decreased to $100.0 million at September 30, 2024, down from $176.0 million at June 30, 2024 [6]. Capital Ratios - The Bank's Tier 1 leverage and total capital ratios were 10.9% and 16.7% at September 30, 2024, compared to 10.9% and 16.6% at June 30, 2024 [4]. Operational Developments - The Company is preparing for a pending transaction with Global Federal Credit Union, awaiting final approval from the National Credit Union Administration [4].
First Financial Northwest, Inc. Reports Third Quarter 2024 Results