"2023 was the most challenging year for many banks since the great recession," said
The Board of Directors of
2023 FINANCIAL RESULTS | 4Q 23 | 3Q 23 | 4Q 22 | 2023 | 2022 | |||||||||||||||
OPERATING RESULTS (in millions) | ||||||||||||||||||||
Net (loss) income | $ | (5.5 | ) | $ | 2.5 | $ | 6.1 | $ | 2.3 | $ | 15.6 | |||||||||
Pre-provision net interest income | 14.2 | 15.0 | 18.9 | 61.4 | 69.9 | |||||||||||||||
Noninterest expense | 17.0 | 14.4 | 15.1 | 61.5 | 62.3 | |||||||||||||||
Total revenue, net of interest expense * | 11.3 | 17.9 | 22.3 | 65.5 | 80.2 | |||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Basic and diluted (loss) earnings | $ | (0.62 | ) | $ | 0.28 | $ | 0.66 | $ | 0.26 | $ | 1.71 | |||||||||
Book value | 16.99 | 16.20 | 16.31 | 16.99 | 16.31 | |||||||||||||||
Tangible book value * | 16.83 | 16.03 | 16.13 | 16.83 | 16.13 | |||||||||||||||
BALANCE SHEET (in millions) | ||||||||||||||||||||
Total assets | $ | 2,202 | $ | 2,154 | $ | 2,042 | $ | 2,202 | $ | 2,042 | ||||||||||
Total loans | 1,660 | 1,635 | 1,548 | 1,660 | 1,548 | |||||||||||||||
Total deposits | 1,677 | 1,658 | 1,564 | 1,677 | 1,564 | |||||||||||||||
Total shareholders' equity | 163 | 156 | 158 | 163 | 158 | |||||||||||||||
ASSET QUALITY | ||||||||||||||||||||
Net charge-off ratio (1) | 0.14 | % | 0.30 | % | 0.11 | % | 0.20 | % | 0.03 | % | ||||||||||
Nonperforming assets to total assets | 0.85 | 0.11 | 0.09 | 0.85 | 0.09 | |||||||||||||||
Allowance for credit losses on loans | ||||||||||||||||||||
to total loans | 1.05 | 1.04 | 1.04 | 1.05 | 1.04 | |||||||||||||||
Nonperforming loan coverage ratio | 94 | 714 | 900 | 94 | 900 | |||||||||||||||
SELECTED RATIOS | ||||||||||||||||||||
Return on average assets (1) | -1.03 | % | 0.46 | % | 1.18 | % | 0.11 | % | 0.79 | % | ||||||||||
Return on average equity (1) | -14.05 | 6.17 | 15.26 | 1.43 | 9.09 | |||||||||||||||
Return on average tangible equity (1) * | -14.20 | 6.23 | 15.45 | 1.45 | 9.21 | |||||||||||||||
Net interest margin | 2.84 | 2.97 | 3.96 | 3.13 | 3.79 | |||||||||||||||
Efficiency ratio | 150.81 | 80.52 | 67.91 | 93.89 | 77.71 | |||||||||||||||
Bank common equity tier 1 (CETI) ratio | 13.12 | 13.43 | 13.40 | 13.12 | 13.40 | |||||||||||||||
Bank total risk-based capital ratio | 14.11 | 14.38 | 14.42 | 14.11 | 14.42 |
(1) Performance ratios are annualized, where appropriate.
* See reconciliation of Non-GAAP Financial Measures later in this release.
2023 Significant Items | |
• | |
• | The Company completed final transactions related to its investments in |
• | The Bank entered into a consent order with the |
• | Operating expenses, notably compensation and benefits, were down significantly year-over-year, excluding one-time charges. |
• | Sale of Visa, Inc. Class B common stock generated a one-time gain of |
• | Tangible book value* grew by 5.0% during the fourth quarter as positive changes in Other Comprehensive Income offset the net loss for the quarter. Capital ratios for the Bank remained substantially above well capitalized. |
• | Loans grew year-over-year by $112.5 million, or 7.3%, to $1.66 billion. |
• | Deposits grew year-over-year by $112.6 million, or 7.2%, to |
• | Estimated insured deposits totaled |
• | Liquidity remained ample with coverage of uninsured deposits at 1.2x. |
• | Asset quality was closely monitored: |
- Past due and nonperforming loan balances were less than 1.2% of the loan portfolio. | |
- Classified loans increased during the year to 2.1% of total loans. | |
Results in the fourth quarter of 2023 were impacted by a
The Company sold available-for-sale investment securities with a book value of
Also during the fourth quarter of 2023, the Company determined that
Other one-time noninterest expenses recorded in the fourth quarter of 2023 included an accrual for a civil money penalty proposed by the FDIC of
Net Interest Income
Total interest income increased $475,000 to $26.3 million for the fourth quarter of 2023, compared to $25.8 million in the previous quarter, and increased $2.7 million from $23.7 million in the fourth quarter of 2022. Interest income increased in the current quarter due to an increased volume of loans and higher yields on loans, investments and interest-earning deposits in banks. Interest and fees on loans increased year-over-year as First Fed's loan portfolio grew as a result of draws on new and existing lines of credit, originations of multi-family and commercial real estate loans, and auto and manufactured home loan purchases. The Northpointe Mortgage Purchase Program ("Northpointe MPP") participation also provided
Total interest expense increased $1.2 million to $12.1 million for the fourth quarter of 2023, compared to $10.9 million in the third quarter of 2023, and increased
Net interest income before provision for credit losses for the fourth quarter of 2023 decreased $755,000, or 5.1%, to
The Company recorded a
The net interest margin decreased to 2.84% for the fourth quarter of 2023, from 2.97% for the prior quarter, and decreased 112 basis points compared to 3.96% for the fourth quarter of 2022. Decreases from both the prior quarter and the same quarter one year ago are due to higher funding costs for both deposits and borrowed funds. New loan originations are priced to account for the increasing cost of funds. Organic loan production is augmented with higher-yielding purchased loans through established relationships with loan originators. The Bank's fair value hedging agreement increased quarter-over-quarter interest income by
The yield on average earning assets for the fourth quarter of 2023 increased 13 basis points to 5.27% compared to the third quarter of 2023 and increased 32 basis points from 4.95% for the fourth quarter of 2022, primarily attributable to higher loan rates at origination and increased yields on variable-rate loans. 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 27 basis points to 2.87% for the fourth quarter of 2023, compared to 2.60% for the third quarter of 2023, and increased 163 basis points from 1.24% for the fourth quarter of 2022. Total cost of funds increased to 2.48% for the fourth quarter of 2023 from 2.23% in the prior quarter and increased from 1.02% for the fourth quarter of 2022. Current quarter increases were due to higher costs on interest-bearing deposits and borrowings in addition to increases in average CD and borrowing balances.
The increase over the same quarter last year was driven by higher rates paid on deposits and borrowings and higher average CD balances. The Company attracted and retained funding through the use of promotional products and a focus on digital account acquisition. The mix of retail deposit balances shifted from no or low-cost transaction accounts towards higher cost term certificate and savings products. Retail CDs represented 30.2%, 27.6% and 17.3% of retail deposits at
Selected Yields | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | 4Q 22 | |||||||||||||||
Loan yield | 5.38 | % | 5.31 | % | 5.38 | % | 5.16 | % | 5.22 | % | ||||||||||
Investment securities yield | 4.53 | 4.18 | 4.09 | 3.93 | 3.71 | |||||||||||||||
Cost of interest-bearing deposits | 2.52 | 2.22 | 1.87 | 1.37 | 0.78 | |||||||||||||||
Cost of total deposits | 2.12 | 1.85 | 1.54 | 1.12 | 0.62 | |||||||||||||||
Cost of borrowed funds | 4.50 | 4.45 | 4.36 | 3.92 | 3.30 | |||||||||||||||
Net interest spread | 2.40 | 2.54 | 2.84 | 3.13 | 3.71 | |||||||||||||||
Net interest margin | 2.84 | 2.97 | 3.25 | 3.46 | 3.96 | |||||||||||||||
Noninterest Income
Noninterest income decreased 200.9% to a loss of $2.9 million for the fourth quarter of 2023 compared to income of $2.9 million for the third quarter of 2023, primarily due to the
Noninterest income declined $6.3 million to $4.0 million for the year ended
Noninterest Income | ||||||||||||||||||||
$ in thousands | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | 4Q 22 | |||||||||||||||
Loan and deposit service fees | $ | 1,068 | $ | 1,068 | $ | 1,064 | 1,141 | $ | 1,163 | |||||||||||
Sold loan servicing fees and servicing rights mark-to-market | 276 | 98 | (191 | ) | 493 | 202 | ||||||||||||||
Net gain on sale of loans | 33 | 171 | 58 | 176 | 55 | |||||||||||||||
Net (loss) gain on sale of investment securities | (5,397 | ) | — | — | — | — | ||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 260 | 252 | 190 | 226 | 230 | |||||||||||||||
Income from death benefit on bank-owned life insurance, net | — | — | — | — | 1,489 | |||||||||||||||
Other income | 831 | 1,315 | 590 | 298 | 229 | |||||||||||||||
Total noninterest income | $ | (2,929 | ) | $ | 2,904 | $ | 1,711 | $ | 2,334 | $ | 3,368 | |||||||||
Noninterest Expense
Noninterest expense totaled $17.0 million for the fourth quarter of 2023, compared to $14.4 million for the preceding quarter and $15.1 million for the fourth quarter a year ago. Increases in other expense were due to the
Noninterest expense decreased 1.4% to
Noninterest Expense | ||||||||||||||||||||
$ in thousands | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | 4Q 22 | |||||||||||||||
Compensation and benefits | $ | 7,397 | $ | 7,795 | $ | 7,837 | $ | 8,357 | $ | 8,357 | ||||||||||
Data processing | 2,107 | 1,945 | 2,038 | 2,119 | 2,119 | |||||||||||||||
Occupancy and equipment | 1,262 | 1,173 | 1,209 | 1,300 | 1,300 | |||||||||||||||
Supplies, postage, and telephone | 351 | 292 | 355 | 333 | 333 | |||||||||||||||
Regulatory assessments and state taxes | 376 | 446 | 389 | 372 | 372 | |||||||||||||||
Advertising | 235 | 501 | 1,041 | 486 | 486 | |||||||||||||||
Professional fees | 1,119 | 929 | 806 | 762 | 762 | |||||||||||||||
418 | 369 | 257 | 235 | 235 | ||||||||||||||||
Other expense | 3,725 | 926 | 939 | 1,179 | 1,179 | |||||||||||||||
Total noninterest expense | $ | 16,990 | $ | 14,376 | $ | 14,871 | $ | 15,143 | $ | 15,143 | ||||||||||
Efficiency ratio | 150.81 | % | 80.52 | % | 86.01 | % | 79.78 | % | 67.91 | % | ||||||||||
Investment securities decreased
The sale of investment securities during the fourth quarter of 2023 resulted in a shift in the investment mix from mortgage-backed securities, municipal bonds and
The estimated average life of the securities portfolio was approximately 7.69 years, compared to 7.65 years in the prior quarter and 8.23 years in the fourth quarter of 2022. The effective duration of the portfolio was approximately 4.75 years at
Investment Securities Available for Sale, at Fair Value | ||||||||||||||||||||
$ in thousands | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | 4Q 22 | |||||||||||||||
Municipal bonds | $ | 87,761 | $ | 93,995 | $ | 100,503 | $ | 101,910 | $ | 98,050 | ||||||||||
— | 2,377 | 2,364 | 2,390 | 2,364 | ||||||||||||||||
International agency issued bonds (Agency bonds) | — | 1,703 | 1,717 | 1,745 | 1,702 | |||||||||||||||
11,782 | — | — | — | — | ||||||||||||||||
Corporate issued asset-backed securities (ABS corporate) | 5,286 | — | — | — | — | |||||||||||||||
Corporate issued debt securities (Corporate debt): | ||||||||||||||||||||
Senior positions | 9,270 | 16,975 | 16,934 | 17,025 | 16,828 | |||||||||||||||
Subordinated bank notes | 42,184 | 37,360 | 36,740 | 38,092 | 38,671 | |||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
63,247 | 66,946 | 71,565 | 74,946 | 75,648 | ||||||||||||||||
Non-agency issued mortgage-backed securities (MBS non-agency) | 76,093 | 89,968 | 92,140 | 92,978 | 93,306 | |||||||||||||||
Total securities available for sale, at fair value | $ | 295,623 | $ | 309,324 | $ | 321,963 | $ | 329,086 | $ | 326,569 | ||||||||||
Loans and Unfunded Loan Commitments
Net loans, excluding loans held for sale, increased
The Company originated $4.5 million in residential mortgages during the fourth quarter of 2023 and sold
Loans by Collateral and Unfunded Commitments | ||||||||||||||||||||
$ in thousands | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | 4Q 22 | |||||||||||||||
One-to-four family construction | $ | 60,211 | $ | 72,991 | $ | 74,787 | $ | 65,770 | $ | 63,021 | ||||||||||
All other construction and land | 69,484 | 71,092 | 81,968 | 95,769 | 130,588 | |||||||||||||||
One-to-four family first mortgage | 426,159 | 409,207 | 428,879 | 394,595 | 384,255 | |||||||||||||||
One-to-four family junior liens | 12,250 | 12,859 | 11,956 | 9,140 | 8,219 | |||||||||||||||
One-to-four family revolving open-end | 42,479 | 38,413 | 33,658 | 30,473 | 29,909 | |||||||||||||||
Commercial real estate, owner occupied: | ||||||||||||||||||||
Health care | 22,523 | 22,677 | 23,157 | 23,311 | 23,463 | |||||||||||||||
Office | 18,468 | 18,599 | 18,797 | 22,246 | 22,583 | |||||||||||||||
Warehouse | 14,758 | 14,890 | 15,158 | 16,782 | 20,411 | |||||||||||||||
Other | 61,304 | 57,414 | 60,054 | 52,212 | 47,778 | |||||||||||||||
Commercial real estate, non-owner occupied: | ||||||||||||||||||||
Office | 53,548 | 53,879 | 54,926 | 58,711 | 59,216 | |||||||||||||||
Retail | 51,384 | 51,466 | 51,824 | 52,175 | 54,800 | |||||||||||||||
Hospitality | 67,332 | 61,339 | 53,416 | 45,978 | 46,349 | |||||||||||||||
Other | 94,822 | 96,083 | 90,870 | 93,207 | 89,047 | |||||||||||||||
Multi-family residential | 333,428 | 325,338 | 296,398 | 284,699 | 252,765 | |||||||||||||||
Commercial business loans | 76,920 | 75,068 | 80,079 | 80,825 | 73,963 | |||||||||||||||
Commercial agriculture and fishing loans | 5,422 | 4,437 | 7,844 | 1,829 | 1,847 | |||||||||||||||
State and political subdivision obligations | 405 | 439 | 439 | 439 | 439 | |||||||||||||||
Consumer automobile loans | 132,877 | 134,695 | 137,860 | 136,540 | 136,213 | |||||||||||||||
Consumer loans secured by other assets | 108,542 | 104,999 | 105,653 | 106,360 | 93,041 | |||||||||||||||
Consumer loans unsecured | 7,712 | 9,093 | 10,437 | 8,403 | 9,644 | |||||||||||||||
Total loans | $ | 1,660,028 | $ | 1,634,978 | $ | 1,638,160 | $ | 1,579,464 | $ | 1,547,551 | ||||||||||
Unfunded loan commitments | $ | 149,631 | $ | 154,722 | $ | 168,668 | $ | 202,720 | $ | 225,836 | ||||||||||
Deposits
Total deposits increased
The Company estimates that
Consumer deposits make up 60% of total deposits with an average balance of
Deposits | ||||||||||||||||||||
$ in thousands | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | 4Q 22 | |||||||||||||||
Noninterest-bearing demand deposits | $ | 252,083 | $ | 269,800 | $ | 280,475 | $ | 292,119 | $ | 315,083 | ||||||||||
Interest-bearing demand deposits | 169,418 | 182,361 | 179,029 | 189,187 | 193,558 | |||||||||||||||
Money market accounts | 362,205 | 372,706 | 374,269 | 402,760 | 473,009 | |||||||||||||||
Savings accounts | 242,148 | 253,182 | 260,279 | 242,117 | 200,920 | |||||||||||||||
Certificates of deposit, retail | 443,412 | 410,136 | 379,484 | 333,510 | 247,824 | |||||||||||||||
Total retail deposits | 1,469,266 | 1,488,185 | 1,473,536 | 1,459,693 | 1,430,394 | |||||||||||||||
Certificates of deposit, brokered | 207,626 | 169,577 | 179,586 | 134,515 | 133,861 | |||||||||||||||
Total deposits | $ | 1,676,892 | $ | 1,657,762 | $ | 1,653,122 | $ | 1,594,208 | $ | 1,564,255 | ||||||||||
Public fund and tribal deposits included in total deposits | $ | 132,652 | $ | 128,627 | $ | 130,974 | $ | 119,969 | $ | 103,662 | ||||||||||
Total loans to total deposits | 99 | % | 99 | % | 99 | % | 99 | % | 99 | % |
Deposit Mix | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | 4Q 22 | |||||||||||||||
Noninterest-bearing demand deposits | 15.0 | % | 16.3 | % | 17.0 | % | 18.3 | % | 20.1 | % | ||||||||||
Interest-bearing demand deposits | 10.1 | 11.0 | 10.8 | 11.9 | 12.4 | |||||||||||||||
Money market accounts | 21.6 | 22.5 | 22.6 | 25.3 | 30.3 | |||||||||||||||
Savings accounts | 14.4 | 15.3 | 15.7 | 15.2 | 12.8 | |||||||||||||||
Certificates of deposit, retail | 26.5 | 24.7 | 23.0 | 20.9 | 15.8 | |||||||||||||||
Certificates of deposit, brokered | 12.4 | 10.2 | 10.9 | 8.4 | 8.6 |
Cost of Deposits for the Quarter Ended | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | 4Q 22 | |||||||||||||||
Interest-bearing demand deposits | 0.45 | % | 0.46 | % | 0.45 | % | 0.42 | % | 0.17 | % | ||||||||||
Money market accounts | 1.48 | 1.22 | 0.99 | 0.73 | 0.49 | |||||||||||||||
Savings accounts | 1.54 | 1.42 | 1.22 | 0.70 | 0.17 | |||||||||||||||
Certificates of deposit, retail | 3.92 | 3.52 | 3.25 | 2.59 | 1.65 | |||||||||||||||
Certificates of deposit, brokered | 4.72 | 4.31 | 3.44 | 2.99 | 2.15 | |||||||||||||||
Cost of total deposits | 2.12 | 1.85 | 1.54 | 1.12 | 0.62 | |||||||||||||||
Asset Quality
Nonperforming loans were $18.6 million at
The allowance for credit losses on loans as a percentage of total loans was 1.05% at
$ in thousands | 4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | 4Q 22 | |||||||||||||||
Allowance for credit losses on loans to total loans | 1.05 | % | 1.04 | % | 1.06 | % | 1.10 | % | 1.04 | % | ||||||||||
Allowance for credit losses on loans to nonperforming loans | 94 | 714 | 677 | 661 | 900 | |||||||||||||||
Nonperforming loans to total loans | 1.12 | 0.15 | 0.16 | 0.17 | 0.12 | |||||||||||||||
Net charge-off ratio (annualized) | 0.14 | 0.30 | 0.10 | 0.25 | 0.11 | |||||||||||||||
Total nonperforming loans | $ | 18,644 | $ | 2,374 | $ | 2,554 | $ | 2,633 | $ | 1,790 | ||||||||||
Reserve for unfunded commitments | $ | 817 | $ | 828 | $ | 1,336 | $ | 1,336 | $ | 325 | ||||||||||
Capital
Total shareholders’ equity increased to
Tangible book value per common share* was $16.83 at
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
4Q 23 | 3Q 23 | 2Q 23 | 1Q 23 | 4Q 22 | ||||||||||||||||
Equity to total assets | 7.42 | % | 7.25 | % | 7.38 | % | 7.38 | % | 7.75 | % | ||||||||||
Tangible common equity ratio * | 7.35 | 7.17 | 7.31 | 7.30 | 7.67 | |||||||||||||||
Capital ratios ( | ||||||||||||||||||||
Tier 1 leverage | 9.90 | 10.12 | 10.16 | 10.41 | 10.41 | |||||||||||||||
Common equity Tier 1 capital | 13.12 | 13.43 | 13.10 | 13.34 | 13.40 | |||||||||||||||
Tier 1 risk-based | 13.12 | 13.43 | 13.10 | 13.34 | 13.40 | |||||||||||||||
Total risk-based | 14.11 | 14.38 | 14.08 | 14.35 | 14.42 | |||||||||||||||
Share Repurchase Program and Cash Dividend
First Northwest continued to return capital to our shareholders through cash dividends and share repurchases during the fourth quarter of 2023. We repurchased 12,205 shares of common stock under the Company's
__________________
* See reconciliation of Non-GAAP Financial Measures later in this release.
Awards/Recognition
The Company received several accolades as a leader in the community in the last year.
In
In
In
In
In
First Fed has been rated a 5-star bank by Bauer Financial, a leading independent bank and credit union rating and research firm. This top rating indicates that First Fed is one of the strongest banks in the nation based on capital, loan quality and other detailed performance criteria.
About the Company
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
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 2024 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:
IRGroup@ourfirstfed.com
360-457-0461
FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited) | ||||||||||||||||||||
Three Month Change | One Year Change | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 19,845 | $ | 20,609 | $ | 17,104 | -3.7 | % | 16.0 | % | ||||||||||
Interest-earning deposits in banks | 103,324 | 63,277 | 28,492 | 63.3 | 262.6 | |||||||||||||||
Investment securities available for sale, at fair value | 295,623 | 309,324 | 326,569 | -4.4 | -9.5 | |||||||||||||||
Loans held for sale | 753 | 689 | 597 | 9.3 | 26.1 | |||||||||||||||
Loans receivable (net of allowance for credit losses on loans | 1,642,518 | 1,618,033 | 1,531,435 | 1.5 | 7.3 | |||||||||||||||
13,664 | 12,621 | 11,681 | 8.3 | 17.0 | ||||||||||||||||
Accrued interest receivable | 7,894 | 8,093 | 6,743 | -2.5 | 17.1 | |||||||||||||||
Premises and equipment, net | 18,049 | 17,954 | 18,089 | 0.5 | -0.2 | |||||||||||||||
Servicing rights on sold loans, at fair value | 3,793 | 3,729 | 3,887 | 1.7 | -2.4 | |||||||||||||||
Bank-owned life insurance, net | 40,578 | 40,318 | 39,665 | 0.6 | 2.3 | |||||||||||||||
Equity and partnership investments | 14,794 | 14,623 | 14,289 | 1.2 | 3.5 | |||||||||||||||
1,086 | 1,087 | 1,089 | -0.1 | -0.3 | ||||||||||||||||
Deferred tax asset, net | 13,001 | 16,611 | 14,091 | -21.7 | -7.7 | |||||||||||||||
Prepaid expenses and other assets | 26,875 | 26,577 | 28,339 | 1.1 | -5.2 | |||||||||||||||
Total assets | $ | 2,201,797 | $ | 2,153,545 | $ | 2,042,070 | 2.2 | % | 7.8 | % | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Deposits | $ | 1,676,892 | $ | 1,657,762 | $ | 1,564,255 | 1.2 | % | 7.2 | % | ||||||||||
Borrowings | 320,936 | 300,416 | 285,358 | 6.8 | 12.5 | |||||||||||||||
Accrued interest payable | 3,396 | 2,276 | 455 | 49.2 | 646.4 | |||||||||||||||
Accrued expenses and other liabilities | 35,973 | 34,651 | 32,344 | 3.8 | 11.2 | |||||||||||||||
Advances from borrowers for taxes and insurance | 1,260 | 2,375 | 1,376 | -46.9 | -8.4 | |||||||||||||||
Total liabilities | 2,038,457 | 1,997,480 | 1,883,788 | 2.1 | 8.2 | |||||||||||||||
Shareholders' Equity | ||||||||||||||||||||
Preferred stock, | — | — | — | n/a | n/a | |||||||||||||||
Common stock, | 96 | 96 | 97 | 0.0 | -1.0 | |||||||||||||||
Additional paid-in capital | 95,784 | 95,658 | 95,508 | 0.1 | 0.3 | |||||||||||||||
Retained earnings | 107,349 | 113,579 | 114,424 | -5.5 | -6.2 | |||||||||||||||
Accumulated other comprehensive loss, net of tax | (32,636 | ) | (45,850 | ) | (40,543 | ) | 28.8 | 19.5 | ||||||||||||
Unearned employee stock ownership plan (ESOP) shares | (7,253 | ) | (7,418 | ) | (7,913 | ) | 2.2 | 8.3 | ||||||||||||
Total parent's shareholders' equity | 163,340 | 156,065 | 161,573 | 4.7 | 1.1 | |||||||||||||||
Noncontrolling interest in | — | — | (3,291 | ) | n/a | 100.0 | ||||||||||||||
Total shareholders' equity | 163,340 | 156,065 | 158,282 | 4.7 | 3.2 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,201,797 | $ | 2,153,545 | $ | 2,042,070 | 2.2 | % | 7.8 | % | ||||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Three Month Change | One Year Change | |||||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Interest and fees on loans receivable | $ | 22,083 | $ | 21,728 | $ | 20,240 | 1.6 | % | 9.1 | % | ||||||||||
Interest on investment securities | 3,393 | 3,368 | 3,059 | 0.7 | 10.9 | |||||||||||||||
Interest on deposits in banks | 581 | 524 | 173 | 10.9 | 235.8 | |||||||||||||||
FHLB dividends | 252 | 214 | 189 | 17.8 | 33.3 | |||||||||||||||
Total interest income | 26,309 | 25,834 | 23,661 | 1.8 | 11.2 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 8,758 | 7,699 | 2,434 | 13.8 | 259.8 | |||||||||||||||
Borrowings | 3,356 | 3,185 | 2,297 | 5.4 | 46.1 | |||||||||||||||
Total interest expense | 12,114 | 10,884 | 4,731 | 11.3 | 156.1 | |||||||||||||||
Net interest income | 14,195 | 14,950 | 18,930 | -5.1 | -25.0 | |||||||||||||||
PROVISION FOR CREDIT LOSSES | ||||||||||||||||||||
Provision for credit losses on loans | 1,162 | 880 | 285 | 32.0 | 307.7 | |||||||||||||||
Recapture of provision for credit losses on unfunded commitments | (10 | ) | (509 | ) | — | 98.0 | 100.0 | |||||||||||||
Provision for credit losses | 1,152 | 371 | 285 | 210.5 | 304.2 | |||||||||||||||
Net interest income after provision for credit losses | 13,043 | 14,579 | 18,645 | -10.5 | -30.0 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Loan and deposit service fees | 1,068 | 1,068 | 1,163 | 0.0 | -8.2 | |||||||||||||||
Sold loan servicing fees and servicing rights mark-to-market | 276 | 98 | 202 | 181.6 | 36.6 | |||||||||||||||
Net gain on sale of loans | 33 | 171 | 55 | -80.7 | -40.0 | |||||||||||||||
Net (loss) gain on sale of investment securities | (5,397 | ) | — | — | 100.0 | 100.0 | ||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 260 | 252 | 230 | 3.2 | 13.0 | |||||||||||||||
Income from death benefit on bank-owned life insurance, net | — | — | 1,489 | n/a | -100.0 | |||||||||||||||
Other income | 831 | 1,315 | 229 | -36.8 | 262.9 | |||||||||||||||
Total noninterest income | (2,929 | ) | 2,904 | 3,368 | -200.9 | -187.0 | ||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Compensation and benefits | 7,397 | 7,795 | 8,357 | -5.1 | -11.5 | |||||||||||||||
Data processing | 2,107 | 1,945 | 2,119 | 8.3 | -0.6 | |||||||||||||||
Occupancy and equipment | 1,262 | 1,173 | 1,300 | 7.6 | -2.9 | |||||||||||||||
Supplies, postage, and telephone | 351 | 292 | 333 | 20.2 | 5.4 | |||||||||||||||
Regulatory assessments and state taxes | 376 | 446 | 372 | -15.7 | 1.1 | |||||||||||||||
Advertising | 235 | 501 | 486 | -53.1 | -51.6 | |||||||||||||||
Professional fees | 1,119 | 929 | 762 | 20.5 | 46.9 | |||||||||||||||
418 | 369 | 235 | 13.3 | 77.9 | ||||||||||||||||
Other expense | 3,725 | 926 | 1,179 | 302.3 | 215.9 | |||||||||||||||
Total noninterest expense | 16,990 | 14,376 | 15,143 | 18.2 | 12.2 | |||||||||||||||
Income before (benefit) provision for income taxes | (6,876 | ) | 3,107 | 6,870 | -321.3 | -200.1 | ||||||||||||||
(Benefit) provision for income taxes | (1,354 | ) | 603 | 1,008 | -324.5 | -234.3 | ||||||||||||||
Net (loss) income | (5,522 | ) | 2,504 | 5,862 | -320.5 | -194.2 | ||||||||||||||
Net loss attributable to noncontrolling interest in | — | — | 198 | n/a | -100.0 | |||||||||||||||
Net (loss) income attributable to parent | $ | (5,522 | ) | $ | 2,504 | $ | 6,060 | -320.5 | % | -191.1 | % | |||||||||
Basic and diluted (loss) earnings per common share | $ | (0.62 | ) | $ | 0.28 | $ | 0.66 | -321.4 | % | -193.9 | % | |||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||
Year Ended | Percent | |||||||||||
2023 | 2022 | Change | ||||||||||
INTEREST INCOME | ||||||||||||
Interest and fees on loans receivable | $ | 84,614 | $ | 68,635 | 23.3 | % | ||||||
Interest on investment securities | 13,279 | 10,866 | 22.2 | |||||||||
Interest on deposits in banks | 2,126 | 375 | 466.9 | |||||||||
FHLB dividends | 880 | 502 | 75.3 | |||||||||
Total interest income | 100,899 | 80,378 | 25.5 | |||||||||
INTEREST EXPENSE | ||||||||||||
Deposits | 27,019 | 5,198 | 419.8 | |||||||||
Borrowings | 12,448 | 5,317 | 134.1 | |||||||||
Total interest expense | 39,467 | 10,515 | 275.3 | |||||||||
Net interest income | 61,432 | 69,863 | -12.1 | |||||||||
PROVISION FOR CREDIT LOSSES | ||||||||||||
Provision for credit losses on loans | 2,357 | 1,535 | 53.6 | |||||||||
(Recapture of) provision for credit losses on unfunded commitments | (1,034 | ) | 0 | 100.0 | ||||||||
Provision for credit losses | 1,323 | 1,535 | -13.8 | |||||||||
Net interest income after provision for credit losses | 60,109 | 68,328 | -12.0 | |||||||||
NONINTEREST INCOME | ||||||||||||
Loan and deposit service fees | 4,341 | 4,729 | -8.2 | |||||||||
Sold loan servicing fees and servicing rights mark-to-market | 676 | 867 | -22.0 | |||||||||
Net gain on sale of loans | 438 | 824 | -46.8 | |||||||||
Net (loss) gain on sale of investment securities | (5,397 | ) | 118 | -4,673.7 | ||||||||
Increase in cash surrender value of bank-owned life insurance | 928 | 916 | 1.3 | |||||||||
Income from death benefit on bank-owned life insurance, net | — | 1,489 | -100.0 | |||||||||
Other income | 3,034 | 1,384 | 119.2 | |||||||||
Total noninterest income | 4,020 | 10,327 | -61.1 | |||||||||
NONINTEREST EXPENSE | ||||||||||||
Compensation and benefits | 31,209 | 35,940 | -13.2 | |||||||||
Data processing | 8,170 | 7,539 | 8.4 | |||||||||
Occupancy and equipment | 4,858 | 5,398 | -10.0 | |||||||||
Supplies, postage, and telephone | 1,433 | 1,376 | 4.1 | |||||||||
Regulatory assessments and state taxes | 1,635 | 1,539 | 6.2 | |||||||||
Advertising | 2,706 | 3,288 | -17.7 | |||||||||
Professional fees | 3,738 | 2,645 | 41.3 | |||||||||
1,357 | 888 | 52.8 | ||||||||||
Other | 6,348 | 3,699 | 71.6 | |||||||||
Total noninterest expense | 61,454 | 62,312 | -1.4 | |||||||||
Income before provision for income taxes | 2,675 | 16,343 | -83.6 | |||||||||
Provision for income taxes | 549 | 2,847 | -80.7 | |||||||||
Net income | 2,126 | 13,496 | -84.2 | |||||||||
Net loss attributable to noncontrolling interest in | 160 | 2,149 | -92.6 | |||||||||
Net income attributable to parent | $ | 2,286 | $ | 15,645 | -85.4 | % | ||||||
Basic and diluted earnings per common share | $ | 0.26 | $ | 1.71 | -84.8 | % | ||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY Selected Financial Ratios and Other Data (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||||||||
As of or For the Quarter Ended | ||||||||||||||||||||
Performance ratios: (1) | ||||||||||||||||||||
Return on average assets | -1.03 | % | 0.46 | % | 0.34 | % | 0.70 | % | 1.18 | % | ||||||||||
Return on average equity | -14.05 | 6.17 | 4.41 | 8.98 | 15.26 | |||||||||||||||
Average interest rate spread | 2.40 | 2.54 | 2.84 | 3.14 | 3.72 | |||||||||||||||
Net interest margin (2) | 2.84 | 2.97 | 3.25 | 3.46 | 3.96 | |||||||||||||||
Efficiency ratio (3) | 150.8 | 80.5 | 86.0 | 79.8 | 67.9 | |||||||||||||||
Equity to total assets | 7.42 | 7.25 | 7.38 | 7.38 | 7.75 | |||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 118.2 | 120.0 | 120.7 | 122.4 | 124.8 | |||||||||||||||
Book value per common share | $ | 16.99 | $ | 16.20 | $ | 16.56 | $ | 16.57 | $ | 16.31 | ||||||||||
Tangible performance ratios: | ||||||||||||||||||||
Tangible assets (4) | $ | 2,200,230 | $ | 2,151,849 | $ | 2,161,235 | $ | 2,170,202 | $ | 2,040,267 | ||||||||||
Tangible common equity (4) | 161,773 | 154,369 | 157,914 | 158,444 | 156,479 | |||||||||||||||
Tangible common equity ratio (4) | 7.35 | % | 7.17 | % | 7.31 | % | 7.30 | % | 7.67 | % | ||||||||||
Return on tangible common equity (4) | -14.20 | 6.23 | 4.47 | 9.08 | 15.45 | |||||||||||||||
Tangible book value per common share (4) | $ | 16.83 | $ | 16.03 | $ | 16.39 | $ | 16.38 | $ | 16.13 | ||||||||||
Asset quality ratios: | ||||||||||||||||||||
Nonperforming assets to total assets at end of period (5) | 0.85 | % | 0.11 | % | 0.12 | % | 0.12 | % | 0.09 | % | ||||||||||
Nonperforming loans to total loans (6) | 1.12 | 0.15 | 0.16 | 0.17 | 0.12 | |||||||||||||||
Allowance for credit losses on loans to nonperforming loans (6) | 93.92 | 713.77 | 677.25 | 660.69 | 900.34 | |||||||||||||||
Allowance for credit losses on loans to total loans | 1.05 | 1.04 | 1.06 | 1.10 | 1.04 | |||||||||||||||
Annualized net charge-offs to average outstanding loans | 0.14 | 0.30 | 0.10 | 0.25 | 0.11 | |||||||||||||||
Capital ratios ( | ||||||||||||||||||||
Tier 1 leverage | 9.9 | % | 10.1 | % | 10.2 | % | 10.4 | % | 10.4 | % | ||||||||||
Common equity Tier 1 capital | 13.1 | 13.4 | 13.1 | 13.3 | 13.4 | |||||||||||||||
Tier 1 risk-based | 13.1 | 13.4 | 13.1 | 13.3 | 13.4 | |||||||||||||||
Total risk-based | 14.1 | 14.4 | 14.1 | 14.4 | 14.4 | |||||||||||||||
Other Information: | ||||||||||||||||||||
Average total assets | $ | 2,127,655 | $ | 2,139,734 | $ | 2,118,014 | $ | 2,050,210 | $ | 2,039,016 | ||||||||||
Average total loans | 1,645,418 | 1,641,206 | 1,605,133 | 1,552,299 | 1,554,276 | |||||||||||||||
Average interest-earning assets | 1,980,226 | 1,994,251 | 1,975,384 | 1,909,271 | 1,895,799 | |||||||||||||||
Average noninterest-bearing deposits | 259,845 | 276,294 | 282,514 | 294,235 | 326,450 | |||||||||||||||
Average interest-bearing deposits | 1,379,059 | 1,377,734 | 1,333,943 | 1,288,429 | 1,243,185 | |||||||||||||||
Average interest-bearing liabilities | 1,675,044 | 1,661,996 | 1,636,188 | 1,559,983 | 1,519,106 | |||||||||||||||
Average equity | 155,971 | 160,994 | 161,387 | 159,319 | 157,590 | |||||||||||||||
Average common shares -- basic | 8,928,620 | 8,906,526 | 8,914,355 | 8,911,294 | 9,069,493 | |||||||||||||||
Average common shares -- diluted | 8,968,828 | 8,934,882 | 8,931,386 | 8,939,601 | 9,106,453 |
(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 SUBSIDIARY Selected Financial Ratios and Other Data (Dollars in thousands, except per share data) (Unaudited) | ||||||||
As of or For the Year Ended | ||||||||
2023 | 2022 | |||||||
Performance ratios: (1) | ||||||||
Return on average assets | 0.11 | % | 0.79 | % | ||||
Return on average equity | 1.43 | 9.09 | ||||||
Average interest rate spread | 2.71 | 3.63 | ||||||
Net interest margin (2) | 3.13 | 3.79 | ||||||
Efficiency ratio (3) | 93.9 | 77.7 | ||||||
Equity to total assets | 7.42 | 7.75 | ||||||
Average interest-earning assets to average interest-bearing liabilities | 120.3 | 128.8 | ||||||
Book value per common share | $ | 16.99 | $ | 16.31 | ||||
Tangible performance ratios: | ||||||||
Tangible assets (4) | $ | 2,200,230 | $ | 2,040,267 | ||||
Tangible common equity (4) | 161,773 | 156,479 | ||||||
Tangible common equity ratio (4) | 7.35 | % | 7.67 | % | ||||
Return on tangible common equity (4) | 1.45 | 9.21 | ||||||
Tangible book value per common share (4) | $ | 16.83 | $ | 16.13 | ||||
Asset quality ratios: | ||||||||
Nonperforming assets to total assets at end of period (5) | 0.85 | % | 0.09 | % | ||||
Nonperforming loans to total loans (6) | 1.12 | 0.12 | ||||||
Allowance for credit losses on loans to nonperforming loans (6) | 93.92 | 900.34 | ||||||
Allowance for credit losses on loans to total loans | 1.05 | 1.04 | ||||||
Annualized net charge-offs to average outstanding loans | 0.20 | 0.03 | ||||||
Capital ratios ( | ||||||||
Tier 1 leverage | 9.9 | % | 10.4 | % | ||||
Common equity Tier 1 capital | 13.1 | 13.4 | ||||||
Tier 1 risk-based | 13.1 | 13.4 | ||||||
Total risk-based | 14.1 | 14.4 | ||||||
Other Information: | ||||||||
Average total assets | $ | 2,109,200 | $ | 1,975,233 | ||||
Average total loans | 1,611,352 | 1,464,448 | ||||||
Average interest-earning assets | 1,965,059 | 1,842,645 | ||||||
Average noninterest-bearing deposits | 278,123 | 335,646 | ||||||
Average interest-bearing deposits | 1,345,130 | 1,228,286 | ||||||
Average interest-bearing liabilities | 1,633,697 | 1,430,796 | ||||||
Average equity | 159,413 | 172,125 | ||||||
Average common shares -- basic | 8,918,284 | 9,082,032 | ||||||
Average common shares -- diluted | 8,941,180 | 9,143,615 |
(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 SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited) | ||||||||||||||||||||
Selected loan detail: | ||||||||||||||||||||
Three Month Change | One Year Change | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Commercial business loans breakout | ||||||||||||||||||||
PPP loans | $ | 32 | $ | 45 | $ | 86 | $ | (13 | ) | $ | (54 | ) | ||||||||
Northpointe Bank MPP | 9,502 | 162 | — | 9,340 | 9,502 | |||||||||||||||
Secured lines of credit | 35,815 | 35,833 | 15,279 | (18 | ) | 20,536 | ||||||||||||||
Unsecured lines of credit | 456 | 919 | 1,276 | (463 | ) | (820 | ) | |||||||||||||
SBA loans | 9,115 | 9,149 | 8,056 | (34 | ) | 1,059 | ||||||||||||||
Other commercial business loans | 57,375 | 55,272 | 52,230 | 2,103 | 5,145 | |||||||||||||||
Total commercial business loans | $ | 112,295 | $ | 101,380 | $ | 76,927 | $ | 10,915 | $ | 35,368 | ||||||||||
Auto and other consumer loans breakout | ||||||||||||||||||||
Triad Manufactured Home loans | $ | 93,591 | $ | 90,230 | $ | 89,011 | $ | 3,361 | $ | 4,580 | ||||||||||
Woodside auto loans | 124,401 | 124,833 | 122,961 | (432 | ) | 1,440 | ||||||||||||||
First Help auto loans | 4,516 | 5,079 | 5,084 | (563 | ) | (568 | ) | |||||||||||||
Other auto loans | 4,158 | 5,022 | 8,182 | (864 | ) | (4,024 | ) | |||||||||||||
Other consumer loans | 22,464 | 23,622 | 13,675 | (1,158 | ) | 8,789 | ||||||||||||||
Total auto and other consumer loans | $ | 249,130 | $ | 248,786 | $ | 238,913 | $ | 344 | $ | 10,217 | ||||||||||
Construction and land loans breakout | ||||||||||||||||||||
1-4 Family construction | $ | 51,737 | $ | 63,371 | $ | 77,138 | $ | (11,634 | ) | $ | (25,401 | ) | ||||||||
Multifamily construction | 50,431 | 54,318 | 76,345 | (3,887 | ) | (25,914 | ) | |||||||||||||
Acquisition-renovation | — | — | 19,247 | — | (19,247 | ) | ||||||||||||||
Nonresidential construction | 20,049 | 18,746 | 9,218 | 1,303 | 10,831 | |||||||||||||||
Land and development | 7,474 | 6,999 | 11,698 | 475 | (4,224 | ) | ||||||||||||||
Total construction and land loans | $ | 129,691 | $ | 143,434 | $ | 193,646 | $ | (13,743 | ) | $ | (63,955 | ) | ||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited) |
Non-GAAP Financial Measures
This 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.
Calculation of Total Revenue:
(Dollars in thousands) | ||||||||||||||||||||
Net interest income | $ | 14,195 | $ | 14,950 | $ | 15,982 | $ | 16,305 | $ | 18,930 | ||||||||||
Noninterest income | (2,929 | ) | 2,904 | 1,711 | 2,334 | 3,368 | ||||||||||||||
Total revenue, net of interest expense | $ | 11,266 | $ | 17,854 | $ | 17,693 | $ | 18,639 | $ | 22,298 |
(1) We believe this non-GAAP metric provides an important measure with which to analyze and evaluate income available for noninterest expenses. |
Calculations Based on Tangible Common Equity:
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Total shareholders' equity | $ | 163,340 | $ | 156,065 | $ | 159,557 | $ | 160,336 | $ | 158,282 | ||||||||||
Less: | 1,086 | 1,087 | 1,087 | 1,088 | 1,089 | |||||||||||||||
Disallowed non-mortgage loan servicing rights | 481 | 609 | 556 | 804 | 714 | |||||||||||||||
Total tangible common equity | $ | 161,773 | $ | 154,369 | $ | 157,914 | $ | 158,444 | $ | 156,479 | ||||||||||
Total assets | $ | 2,201,797 | $ | 2,153,545 | $ | 2,162,878 | $ | 2,172,094 | $ | 2,042,070 | ||||||||||
Less: | 1,086 | 1,087 | 1,087 | 1,088 | 1,089 | |||||||||||||||
Disallowed non-mortgage loan servicing rights | 481 | 609 | 556 | 804 | 714 | |||||||||||||||
Total tangible assets | $ | 2,200,230 | $ | 2,151,849 | $ | 2,161,235 | $ | 2,170,202 | $ | 2,040,267 | ||||||||||
Average shareholders' equity | $ | 155,971 | $ | 160,994 | $ | 161,387 | $ | 159,319 | $ | 157,590 | ||||||||||
Less: Average goodwill and other intangible assets | 1,086 | 1,087 | 1,088 | 1,089 | 1,171 | |||||||||||||||
Average disallowed non-mortgage loan servicing rights | 608 | 557 | 801 | 715 | 813 | |||||||||||||||
Total average tangible common equity | $ | 154,277 | $ | 159,350 | $ | 159,498 | $ | 157,515 | $ | 155,606 | ||||||||||
Tangible common equity ratio (1) | 7.35 | % | 7.17 | % | 7.31 | % | 7.30 | % | 7.67 | % | ||||||||||
Net (loss) income | $ | (5,522 | ) | $ | 2,504 | $ | 1,776 | $ | 3,528 | $ | 6,060 | |||||||||
Return on tangible common equity (1) | -14.20 | % | 6.23 | % | 4.47 | % | 9.08 | % | 15.45 | % | ||||||||||
Common shares outstanding | 9,611,876 | 9,630,735 | 9,633,496 | 9,674,055 | 9,703,581 | |||||||||||||||
Tangible book value per common share (1) | $ | 16.83 | $ | 16.03 | $ | 16.39 | $ | 16.38 | $ | 16.13 | ||||||||||
GAAP Ratios: | ||||||||||||||||||||
Equity to total assets | 7.42 | % | 7.25 | % | 7.38 | % | 7.38 | % | 7.75 | % | ||||||||||
Return on average equity | -14.05 | % | 6.17 | % | 4.41 | % | 8.98 | % | 15.26 | % | ||||||||||
Book value per common share | $ | 16.99 | $ | 16.20 | $ | 16.56 | $ | 16.57 | $ | 16.31 |
(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 AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited) | ||||||||
(Dollars in thousands, except per share data) | ||||||||
Total shareholders' equity | $ | 163,340 | $ | 158,282 | ||||
Less: | 1,086 | 1,089 | ||||||
Disallowed non-mortgage loan servicing rights | 481 | 714 | ||||||
Total tangible common equity | $ | 161,773 | $ | 156,479 | ||||
Total assets | $ | 2,201,797 | $ | 2,042,070 | ||||
Less: | 1,086 | 1,089 | ||||||
Disallowed non-mortgage loan servicing rights | 481 | 714 | ||||||
Total tangible assets | $ | 2,200,230 | $ | 2,040,267 | ||||
Average shareholders' equity | $ | 159,413 | $ | 172,125 | ||||
Less: Average goodwill and other intangible assets | 1,087 | 1,179 | ||||||
Average disallowed non-mortgage loan servicing rights | 670 | 1,026 | ||||||
Total average tangible common equity | $ | 157,656 | $ | 169,920 | ||||
Tangible common equity ratio (1) | 7.35 | % | 7.67 | % | ||||
Net income | $ | 2,286 | $ | 15,645 | ||||
Return on tangible common equity (1) | 1.45 | % | 9.21 | % | ||||
Common shares outstanding | 9,611,876 | 9,703,581 | ||||||
Tangible book value per common share (1) | $ | 16.83 | $ | 16.13 | ||||
GAAP Ratios: | ||||||||
Equity to total assets | 7.42 | % | 7.75 | % | ||||
Return on average equity | 1.43 | % | 9.09 | % | ||||
Book value per common share | $ | 16.99 | $ | 16.31 |
(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. |
Source:
2024 GlobeNewswire, Inc., source