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First Financial Northwest, Inc. Reports Net Income of $1.2 Million or $0.13 per Diluted Share for the Fourth Quarter and $1.1 Million or $0.12 per Diluted Share for the Year Ended December 31, 2024
FFNWFirst Financial Northwest(FFNW) GlobeNewswire·2025-01-28 14:10

Core Viewpoint - First Financial Northwest, Inc. reported a net income of 1.2millionforQ42024,asignificantrecoveryfromanetlossof1.2 million for Q4 2024, a significant recovery from a net loss of 608,000 in Q3 2024, and consistent with the net income of 1.2millioninQ42023.However,thetotalnetincomefortheyear2024decreasedto1.2 million in Q4 2023. However, the total net income for the year 2024 decreased to 1.1 million from 6.3millionin2023[1][6].FinancialPerformance−TheimprovedperformanceinQ42024wasprimarilyduetoa6.3 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 1.6millioninthepreviousquarter[2].−Netloansreceivableincreasedby1.6 million in the previous quarter [2]. - Net loans receivable increased by 14.0 million in Q4 2024, totaling 1.14billion,whilenonaccrualloansremainedlowat1.14 billion, while nonaccrual loans remained low at 842,000, representing 0.07% of the total loan portfolio of 1.16billion[3][6].DepositsandFunding−Totaldepositsdecreasedby1.16 billion [3][6]. Deposits and Funding - Total deposits decreased by 36.0 million to 1.13billionatDecember31,2024,comparedto1.13 billion at December 31, 2024, compared to 1.17 billion at September 30, 2024, and a decrease of 62.7millionfrom62.7 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 110.0millionatDecember31,2024,from110.0 million at December 31, 2024, from 100.0 million at September 30, 2024, but decreased from 125.0millionatDecember31,2023[5].InterestIncomeandExpense−NetinterestincomeforQ42024was125.0 million at December 31, 2023 [5]. Interest Income and Expense - Net interest income for Q4 2024 was 8.4 million, slightly down from 8.5millioninQ32024and8.5 million in Q3 2024 and 9.3 million in Q4 2023. The decrease was attributed to declines in interest from earning assets [11]. - Total interest income decreased to 19.0millioninQ42024from19.0 million in Q4 2024 from 19.4 million in Q3 2024 and 20.3millioninQ42023,primarilyduetoadeclineininterestincomefrominterest−earningdeposits[12][13].NoninterestIncomeandExpense−NoninterestincomeforQ42024totaled20.3 million in Q4 2023, primarily due to a decline in interest income from interest-earning deposits [12][13]. Noninterest Income and Expense - Noninterest income for Q4 2024 totaled 658,000, down from 677,000inQ32024butupfrom677,000 in Q3 2024 but up from 633,000 in Q4 2023. The decrease was mainly due to lower loan and deposit-related fees [17]. - Noninterest expense increased to 8.9millioninQ42024from8.9 million in Q4 2024 from 8.5 million in Q3 2024, primarily due to increased salaries and employee benefits [18]. Capital Ratios - The Bank's Tier 1 leverage and total capital ratios improved to 11.2% and 16.7% respectively at December 31, 2024, compared to 10.9% and 16.7% at September 30, 2024 [6].