Q2 2022 Net Income | Q2 2022 Diluted Earnings Per Share | YTD Loan Growth | Q2 2022 Net Interest Margin | Book Value per Share | ||
$0.27 | 8.0% | 3.77% | $16.60 | |||
$16.40*, excluding goodwill and intangibles |
CEO Commentary
“Our commercial bank shined this quarter as loan growth combined with increasing yields and stable deposit costs to drive increases in net interest income and net interest margin,” said
The Board of Directors of
Quarter Ended June 30, 2022 to March 31, 2022 | Quarter Ended June 30, 2022 to June 30, 2021 |
Financial Highlights | |
Net income of $2.5 million and diluted earnings per share of $0.27, compared to $2.8 million and | Net income of $2.5 million and diluted earnings per share of $0.27, compared to $3.0 million and |
Total revenue (net interest income before provision plus noninterest income) of | Total revenue of |
Effective tax rate of 23.3%, compared to 18.1% | Effective tax rate of 23.3%, compared to 18.9% |
Financial Position | |
Total assets of | Increase in total assets of |
Total gross loans, excluding loans held for sale, of | Increase in total gross loans, excluding loans held for sale, of |
Total deposits of | Increase in total deposits of |
Asset Quality and Capital | |
Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.06% for both periods | Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.06%, compared to 0.10% |
Tangible common equity ratio* of 8.04%, compared to 9.04% | Tangible common equity ratio* of 8.04%, compared to 10.55% |
Key Performance Metrics | |
Net interest margin of 3.77%, compared to 3.53% | Net interest margin of 3.77%, compared to 3.34% |
Efficiency ratio of 87.2%, compared to 82.9% | Efficiency ratio of 87.2%, compared to 78.2% |
Return on average assets and return on tangible common equity* of 0.51% and 5.82%, compared to 0.60% and 6.09%, respectively | Return on average assets and return on tangible common equity* of 0.51% and 5.82%, compared to 0.69% and 6.46%, respectively |
Tangible book value per share* of | Tangible book value per share* of $16.40, a decrease of 11.3% from $18.49 |
___________________________
* See reconciliation of Non-GAAP Financial Measures later in this release.
Balance Sheet Review
Total assets increased
Cash and cash equivalents increased by
Investment securities decreased
Investment securities consisted of the following at the dates indicated:
Three Month Change | One Year Change | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Available for Sale at Fair Value | ||||||||||||||||||||
Municipal bonds | $ | 104,048 | $ | 110,248 | $ | 130,458 | $ | (6,200 | ) | $ | (26,410 | ) | ||||||||
2,420 | 2,450 | — | (30 | ) | 2,420 | |||||||||||||||
International agency issued bonds (Agency bonds) | 1,762 | 1,811 | 1,949 | (49 | ) | (187 | ) | |||||||||||||
— | — | 36,564 | — | (36,564 | ) | |||||||||||||||
Corporate issued asset-backed securities (ABS corporate) | — | — | 4,000 | — | (4,000 | ) | ||||||||||||||
Corporate issued debt securities (Corporate debt) | 57,977 | 59,904 | 49,880 | (1,927 | ) | 8,097 | ||||||||||||||
— | 2,777 | 16,753 | (2,777 | ) | (16,753 | ) | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
85,796 | 96,064 | 75,429 | (10,268 | ) | 10,367 | |||||||||||||||
Non-agency issued mortgage-backed securities (MBS non-agency) | 101,141 | 104,441 | 55,467 | (3,300 | ) | 45,674 | ||||||||||||||
Total securities available for sale | $ | 353,144 | $ | 377,695 | $ | 370,500 | $ | (24,551 | ) | $ | (17,356 | ) | ||||||||
Net loans, excluding loans held for sale, increased
The Company originated $18.4 million in residential mortgages during the second quarter and sold
Loans receivable consisted of the following at the dates indicated:
Three Month Change | One Year Change | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Real Estate: | ||||||||||||||||||||
One to four family | $ | 309,191 | $ | 291,053 | $ | 301,816 | $ | 18,138 | $ | 7,375 | ||||||||||
Multi-family | 221,337 | 203,746 | 166,502 | 17,591 | 54,835 | |||||||||||||||
Commercial real estate | 381,279 | 370,346 | 319,644 | 10,933 | 61,635 | |||||||||||||||
Construction and land | 214,394 | 209,395 | 183,685 | 4,999 | 30,709 | |||||||||||||||
Total real estate loans | 1,126,201 | 1,074,540 | 971,647 | 51,661 | 154,554 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity | 46,993 | 39,858 | 36,886 | 7,135 | 10,107 | |||||||||||||||
Auto and other consumer | 220,865 | 206,140 | 171,617 | 14,725 | 49,248 | |||||||||||||||
Total consumer loans | 267,858 | 245,998 | 208,503 | 21,860 | 59,355 | |||||||||||||||
Commercial business | 71,218 | 54,506 | 75,995 | 16,712 | (4,777 | ) | ||||||||||||||
Total loans | 1,465,277 | 1,375,044 | 1,256,145 | 90,233 | 209,132 | |||||||||||||||
Less: | ||||||||||||||||||||
Net deferred loan fees | 3,670 | 4,144 | 5,610 | (474 | ) | (1,940 | ) | |||||||||||||
Premium on purchased loans, net | (15,692 | ) | (14,816 | ) | (10,393 | ) | (876 | ) | (5,299 | ) | ||||||||||
Allowance for loan losses | 15,747 | 15,127 | 14,588 | 620 | 1,159 | |||||||||||||||
Total loans receivable, net | $ | 1,461,552 | $ | 1,370,589 | $ | 1,246,340 | $ | 90,963 | $ | 215,212 | ||||||||||
Prepaid expenses and other assets increased $13.7 million to $46.1 million at June 30, 2022, compared to $32.5 million at
Total deposits increased
Demand deposits increased 9.4% compared to a year ago to
The total cost of deposits was 0.20% for the second quarter of 2022 compared to 0.19% for the first quarter of 2022, and improved from 0.23% for the second quarter of 2021.
Deposits consisted of the following at the dates indicated:
Three Month Change | One Year Change | |||||||||||||||||
(In thousands) | ||||||||||||||||||
Noninterest-bearing demand deposits | $ | 336,311 | $ | 326,289 | $ | 307,119 | $ | 10,022 | $ | 29,192 | ||||||||
Interest-bearing demand deposits | 192,114 | 204,949 | 175,939 | (12,835 | ) | 16,175 | ||||||||||||
Money market accounts | 587,747 | 581,804 | 511,051 | 5,943 | 76,696 | |||||||||||||
Savings accounts | 195,029 | 197,351 | 185,798 | (2,322 | ) | 9,231 | ||||||||||||
Certificates of deposit | 269,523 | 239,021 | 261,831 | 30,502 | 7,692 | |||||||||||||
Total deposits | $ | 1,580,724 | $ | 1,549,414 | $ | 1,441,738 | $ | 31,310 | $ | 138,986 | ||||||||
Total shareholders’ equity decreased to
Income Statement Results
In the second quarter of 2022, the Company generated a return on average assets ("ROAA") of 0.51%, and a return on average equity ("ROAE") of 5.75%, compared to 0.60% and 6.01%, respectively, in the first quarter of 2022, and 0.69% and 6.46%, respectively, in the second quarter of 2021. Year-to-date, the Company generated an ROAA of 0.55%, and an ROAE of 5.88%, compared to 0.73% and 6.63%, respectively, for the six months ended
Total interest income increased $2.1 million to $19.0 million for the second quarter of 2022, compared to $16.9 million in the previous quarter, and increased $3.9 million from $15.1 million in the second quarter of 2021. Interest and fees on loans increased during the quarter as we grew the loan portfolio through new originations in multi-family and construction loans, as well as adding higher yielding purchased manufactured home loans and purchased auto loans. Loan yields are trending up as the result of higher rates on new originations as well as from the repricing of variable rate loans tied to the Prime Rate or other indices. Total interest expense was $1.7 million for the second quarter of 2022, compared to $1.4 million in the first quarter of 2022 and second quarter a year ago. The increase was a result of a higher volume of interest-costing liabilities, primarily from FHLB borrowings which are more sensitive to
Total interest income for the six months ended
Net interest income, before provision for loan losses, for the second quarter of 2022 increased 11.3% to
The positive impact of PPP loan forgiveness on interest income is declining, as most of these loans have already been forgiven. As of
The Company recorded a
The net interest margin increased 24 basis points to 3.77% for the second quarter of 2022, from 3.53% the prior quarter, and increased 43 basis points over the second quarter of 2021 of 3.34%. Increases over both the prior quarter and the prior year are primarily due to an improvement in our earning asset mix and loan fee income recognized from loan payoffs during the second quarter of 2022, as well as higher market rates for both fixed and variable rate assets. The net interest margin increased 22 basis points to 3.65% for the six months ended
___________________________
* See reconciliation of Non-GAAP Financial Measures later in this release.
The yield on earning assets increased 28 basis points to 4.14% for the second quarter of 2022, compared to 3.86% for the first quarter of 2022, and increased 46 basis points from 3.68% for the second quarter of 2021. The increase over the prior quarter was due to higher yields on the investment portfolio along with higher average loan balances coupled with an increase on the loan portfolio yield to 4.48% for the second quarter of 2022, compared to 4.43% for the first quarter of 2022, primarily due to the impact of the rising rate environment. The year-over-year increase was primarily due to the higher volume of average loan balances augmented by increases in yields which were positively impacted by the rising rate environment.
The yield on earning assets increased 25 basis points to 4.00% for the six months ended
The cost of interest-bearing liabilities increased 6 basis points to 0.49% for the second quarter of 2022, compared to 0.43% for the first quarter of 2022, and increased 3 basis points from 0.46% for the second quarter of 2021. Total cost of funds increased 5 basis points to 0.39% for the second quarter of 2022 from 0.34% in the prior quarter, and increased 2 basis points from 0.37% for the second quarter of 2021. Current quarter increases were mainly due to higher average FHLB advances along with a small impact from higher costs on interest-bearing deposits. The increase over the same quarter in 2021 was also driven by higher average FHLB advances but was partially offset by a year-over-year decrease in the average cost of interest-bearing deposits.
The cost of interest-bearing liabilities increased 3 basis points to 0.46% for the six months ended
Noninterest income decreased 7.5% to $2.2 million for the second quarter of 2022 from $2.4 million for the first quarter of 2022, and decreased 42.6% compared to
Noninterest income decreased 29.7% to $4.6 million for the six months ended
Noninterest expense totaled $17.0 million for the second quarter of 2022, compared to $14.8 million for the preceding quarter and $13.7 million for the second quarter a year ago. Quin Ventures launched the Credit Builder product in the second quarter of 2022 and, as a result, costs that were previously capitalized during the development phase due to software capitalization rules are now being expensed.
Noninterest expense increased 23.2% to $31.8 million for the six months ended
The provision for income tax decreased to $467,000 for the second quarter of 2022, compared to $554,000 for the first quarter of 2022 and
Capital Ratios and Credit Quality
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
Nonperforming loans were $1.2 million at
Awards/Recognition
The Company has received several accolades as a leader in the community.
In
In
Additionally, in June 2022 First Fed was named on the Puget Sound Business Journal’s Best Workplaces list. First Fed has been recognized as one the top 100 workplaces in
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; 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 2022 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.
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 | $ | 19,006 | $ | 16,271 | $ | 17,589 | 16.8 | % | 8.1 | % | ||||||||
Interest-earning deposits in banks | 68,789 | 66,257 | 63,133 | 3.8 | 9.0 | |||||||||||||
Investment securities available for sale, at fair value | 353,144 | 377,695 | 370,500 | -6.5 | -4.7 | |||||||||||||
Loans held for sale | 696 | 1,334 | 1,971 | -47.8 | -64.7 | |||||||||||||
Loans receivable (net of allowance for loan losses of | 1,461,552 | 1,370,589 | 1,246,340 | 6.6 | 17.3 | |||||||||||||
10,402 | 8,122 | 5,597 | 28.1 | 85.8 | ||||||||||||||
Accrued interest receivable | 5,802 | 5,696 | 5,949 | 1.9 | -2.5 | |||||||||||||
Premises and equipment, net | 21,291 | 21,050 | 16,386 | 1.1 | 29.9 | |||||||||||||
Servicing rights on sold loans, net | — | — | 2,381 | n/a | -100.0 | |||||||||||||
Servicing rights on sold loans, at fair value | 3,865 | 4,046 | — | -4.5 | 100.0 | |||||||||||||
Bank-owned life insurance, net | 39,783 | 39,570 | 38,839 | 0.5 | 2.4 | |||||||||||||
1,176 | 1,180 | — | -0.3 | 100.0 | ||||||||||||||
Prepaid expenses and other assets | 46,126 | 32,472 | 18,706 | 42.0 | 146.6 | |||||||||||||
Total assets | $ | 2,031,632 | $ | 1,944,282 | $ | 1,787,391 | 4.5 | % | 13.7 | % | ||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||
Deposits | $ | 1,580,724 | $ | 1,549,414 | $ | 1,441,738 | 2.0 | % | 9.6 | % | ||||||||
Borrowings | 249,319 | 184,250 | 129,241 | 35.3 | 92.9 | |||||||||||||
Accrued interest payable | 461 | 13 | 455 | 3,446.2 | 1.3 | |||||||||||||
Accrued expenses and other liabilities | 35,040 | 30,691 | 26,221 | 14.2 | 33.6 | |||||||||||||
Advances from borrowers for taxes and insurance | 934 | 2,138 | 1,143 | -56.3 | -18.3 | |||||||||||||
Total liabilities | 1,866,478 | 1,766,506 | 1,598,798 | 5.7 | 16.7 | |||||||||||||
Shareholders' Equity | ||||||||||||||||||
Preferred stock, | — | — | — | n/a | n/a | |||||||||||||
Common stock, | 100 | 100 | 102 | 0.0 | -2.0 | |||||||||||||
Additional paid-in capital | 96,479 | 96,473 | 97,463 | 0.0 | -1.0 | |||||||||||||
Retained earnings | 107,000 | 105,546 | 96,573 | 1.4 | 10.8 | |||||||||||||
Accumulated other comprehensive (loss) income, net of tax | (28,447 | ) | (15,153 | ) | 3,546 | -87.7 | -902.2 | |||||||||||
Unearned employee stock ownership plan (ESOP) shares | (8,242 | ) | (8,407 | ) | (8,901 | ) | 2.0 | 7.4 | ||||||||||
Total parent's shareholders' equity | 166,890 | 178,559 | 188,783 | -6.5 | -11.6 | |||||||||||||
Noncontrolling interest in | (1,736 | ) | (783 | ) | (190 | ) | -121.7 | -813.7 | ||||||||||
Total shareholders' equity | 165,154 | 177,776 | 188,593 | -7.1 | -12.4 | |||||||||||||
Total liabilities and shareholders' equity | $ | 2,031,632 | $ | 1,944,282 | $ | 1,787,391 | 4.5 | % | 13.7 | % | ||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data) (Unaudited)
Quarter Ended | ||||||||||||||||||
Three Month Change | One Year Change | |||||||||||||||||
INTEREST INCOME | ||||||||||||||||||
Interest and fees on loans receivable | $ | 16,081 | $ | 14,536 | $ | 12,866 | 10.6 | % | 25.0 | % | ||||||||
Interest on investment securities | 2,715 | 2,275 | 2,124 | 19.3 | 27.8 | |||||||||||||
Interest on deposits in banks | 46 | 38 | 15 | 21.1 | 206.7 | |||||||||||||
FHLB dividends | 119 | 52 | 46 | 128.8 | 158.7 | |||||||||||||
Total interest income | 18,961 | 16,901 | 15,051 | 12.2 | 26.0 | |||||||||||||
INTEREST EXPENSE | ||||||||||||||||||
Deposits | 796 | 717 | 825 | 11.0 | -3.5 | |||||||||||||
Borrowings | 922 | 698 | 577 | 32.1 | 59.8 | |||||||||||||
Total interest expense | 1,718 | 1,415 | 1,402 | 21.4 | 22.5 | |||||||||||||
Net interest income | 17,243 | 15,486 | 13,649 | 11.3 | 26.3 | |||||||||||||
PROVISION FOR LOAN LOSSES | 500 | — | 300 | 100.0 | 66.7 | |||||||||||||
Net interest income after provision for loan losses | 16,743 | 15,486 | 13,349 | 8.1 | 25.4 | |||||||||||||
NONINTEREST INCOME | ||||||||||||||||||
Loan and deposit service fees | 1,091 | 1,173 | 1,001 | -7.0 | 9.0 | |||||||||||||
Sold loan servicing fees | 27 | 432 | 13 | -93.8 | 107.7 | |||||||||||||
Net gain on sale of loans | 231 | 253 | 1,017 | -8.7 | -77.3 | |||||||||||||
Net (loss) gain on sale of investment securities | (8 | ) | 126 | 1,124 | -106.3 | -100.7 | ||||||||||||
Increase in cash surrender value of bank-owned life insurance | 213 | 252 | 242 | -15.5 | -12.0 | |||||||||||||
Other income | 668 | 167 | 475 | 300.0 | 40.6 | |||||||||||||
Total noninterest income | 2,222 | 2,403 | 3,872 | -7.5 | -42.6 | |||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||
Compensation and benefits | 9,735 | 8,803 | 8,559 | 10.6 | 13.7 | |||||||||||||
Data processing | 1,870 | 1,772 | 1,525 | 5.5 | 22.6 | |||||||||||||
Occupancy and equipment | 1,432 | 1,167 | 1,004 | 22.7 | 42.6 | |||||||||||||
Supplies, postage, and telephone | 408 | 313 | 355 | 30.4 | 14.9 | |||||||||||||
Regulatory assessments and state taxes | 441 | 361 | 301 | 22.2 | 46.5 | |||||||||||||
Advertising | 1,370 | 787 | 492 | 74.1 | 178.5 | |||||||||||||
Professional fees | 629 | 559 | 644 | 12.5 | -2.3 | |||||||||||||
211 | 223 | 168 | -5.4 | 25.6 | ||||||||||||||
Other | 867 | 846 | 659 | 2.5 | 31.6 | |||||||||||||
Total noninterest expense | 16,963 | 14,831 | 13,707 | 14.4 | 23.8 | |||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 2,002 | 3,058 | 3,514 | -34.5 | -43.0 | |||||||||||||
PROVISION FOR INCOME TAXES | 467 | 554 | 663 | -15.7 | -29.6 | |||||||||||||
NET INCOME | 1,535 | 2,504 | 2,851 | -38.7 | -46.2 | |||||||||||||
Net loss attributable to noncontrolling interest in | 953 | 302 | 145 | 215.6 | 557.2 | |||||||||||||
NET INCOME ATTRIBUTABLE TO PARENT | $ | 2,488 | $ | 2,806 | $ | 2,996 | -11.3 | % | -17.0 | % | ||||||||
Basic and diluted earnings per common share | $ | 0.27 | $ | 0.30 | $ | 0.32 | -10.0 | % | -15.6 | % | ||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data) (Unaudited)
Six Months Ended | Percent | ||||||||||
2022 | 2021 | Change | |||||||||
INTEREST INCOME | |||||||||||
Interest and fees on loans receivable | $ | 30,617 | $ | 25,407 | 20.5 | % | |||||
Interest on investment securities | 4,990 | 4,158 | 20.0 | ||||||||
Interest on deposits in banks | 84 | 28 | 200.0 | ||||||||
FHLB dividends | 171 | 91 | 87.9 | ||||||||
Total interest income | 35,862 | 29,684 | 20.8 | ||||||||
INTEREST EXPENSE | |||||||||||
Deposits | 1,513 | 1,759 | -14.0 | ||||||||
Borrowings | 1,620 | 793 | 104.3 | ||||||||
Total interest expense | 3,133 | 2,552 | 22.8 | ||||||||
Net interest income | 32,729 | 27,132 | 20.6 | ||||||||
PROVISION FOR LOAN LOSSES | 500 | 800 | -37.5 | ||||||||
Net interest income after provision for loan losses | 32,229 | 26,332 | 22.4 | ||||||||
NONINTEREST INCOME | |||||||||||
Loan and deposit service fees | 2,264 | 1,838 | 23.2 | ||||||||
Sold loan servicing fees | 459 | 43 | 967.4 | ||||||||
Net gain on sale of loans | 484 | 2,354 | -79.4 | ||||||||
Net gain on sale of investment securities | 118 | 1,124 | -89.5 | ||||||||
Increase in cash surrender value of bank-owned life insurance | 465 | 486 | -4.3 | ||||||||
Other income | 835 | 731 | 14.2 | ||||||||
Total noninterest income | 4,625 | 6,576 | -29.7 | ||||||||
NONINTEREST EXPENSE | |||||||||||
Compensation and benefits | 18,538 | 15,854 | 16.9 | ||||||||
Data processing | 3,642 | 2,858 | 27.4 | ||||||||
Occupancy and equipment | 2,599 | 2,033 | 27.8 | ||||||||
Supplies, postage, and telephone | 721 | 597 | 20.8 | ||||||||
Regulatory assessments and state taxes | 802 | 562 | 42.7 | ||||||||
Advertising | 2,157 | 937 | 130.2 | ||||||||
Professional fees | 1,188 | 1,166 | 1.9 | ||||||||
434 | 316 | 37.3 | |||||||||
Other | 1,713 | 1,478 | 15.9 | ||||||||
Total noninterest expense | 31,794 | 25,801 | 23.2 | ||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 5,060 | 7,107 | -28.8 | ||||||||
PROVISION FOR INCOME TAXES | 1,021 | 1,136 | -10.1 | ||||||||
NET INCOME | 4,039 | 5,971 | -32.4 | ||||||||
Net loss attributable to noncontrolling interest in | 1,255 | 145 | 765.5 | ||||||||
NET INCOME ATTRIBUTABLE TO PARENT | $ | 5,294 | $ | 6,116 | -13.4 | % | |||||
Basic and diluted earnings per common share | $ | 0.58 | $ | 0.64 | -9.4 | % | |||||
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 | 0.51 | % | 0.60 | % | 1.09 | % | 0.92 | % | 0.69 | % | ||||||||||
Return on average equity | 5.75 | 6.01 | 10.72 | 8.69 | 6.46 | |||||||||||||||
Average interest rate spread | 3.65 | 3.43 | 3.48 | 3.46 | 3.22 | |||||||||||||||
Net interest margin (2) | 3.77 | 3.53 | 3.58 | 3.58 | 3.34 | |||||||||||||||
Net interest margin - core (2) (4) | 3.75 | 3.50 | 3.51 | 3.46 | 3.35 | |||||||||||||||
Efficiency ratio (3) | 87.2 | 82.9 | 70.5 | 70.3 | 78.2 | |||||||||||||||
Equity to total assets | 8.13 | 9.14 | 9.92 | 10.16 | 10.55 | |||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 130.0 | 132.3 | 133.8 | 134.1 | 133.9 | |||||||||||||||
Book value per common share | $ | 16.60 | $ | 17.77 | $ | 19.10 | $ | 18.65 | $ | 18.48 | ||||||||||
Tangible performance ratios: | ||||||||||||||||||||
Tangible assets (4) | $ | 2,029,702 | $ | 1,942,151 | $ | 1,919,028 | $ | 1,843,395 | $ | 1,787,389 | ||||||||||
Tangible common equity (4) | 163,224 | 175,645 | 188,427 | 185,702 | 188,591 | |||||||||||||||
Tangible common equity ratio (4) | 8.04 | % | 9.04 | % | 9.82 | % | 10.07 | % | 10.55 | % | ||||||||||
Return on tangible common equity (4) | 5.82 | 6.09 | 10.82 | 8.73 | 6.46 | |||||||||||||||
Tangible book value per common share (4) | $ | 16.40 | $ | 17.56 | $ | 18.89 | $ | 18.48 | $ | 18.49 | ||||||||||
Asset quality ratios: | ||||||||||||||||||||
Nonperforming assets to total assets at end of period (5) | 0.06 | % | 0.06 | % | 0.07 | % | 0.06 | % | 0.10 | % | ||||||||||
Nonperforming loans to total loans (6) | 0.08 | 0.09 | 0.10 | 0.09 | 0.14 | |||||||||||||||
Allowance for loan losses to nonperforming loans (6) | 1268.90 | 1226.85 | 1095.15 | 1288.50 | 817.71 | |||||||||||||||
Allowance for loan losses to total loans | 1.07 | 1.10 | 1.11 | 1.13 | 1.16 | |||||||||||||||
Annualized net (recoveries) charge-offs to average outstanding loans | (0.03 | ) | 0.00 | (0.01 | ) | 0.01 | 0.00 | |||||||||||||
Capital ratios ( | ||||||||||||||||||||
Tier 1 leverage | 10.4 | % | 10.6 | % | 10.6 | % | 10.6 | % | 10.9 | % | ||||||||||
Common equity Tier 1 capital | 12.7 | 13.1 | 13.8 | 13.4 | 14.5 | |||||||||||||||
Tier 1 risk-based | 12.7 | 13.1 | 13.8 | 13.4 | 14.5 | |||||||||||||||
Total risk-based | 13.6 | 14.1 | 14.9 | 14.4 | 15.6 | |||||||||||||||
Other Information: | ||||||||||||||||||||
Average total assets | $ | 1,963,665 | $ | 1,899,717 | $ | 1,864,309 | $ | 1,810,543 | $ | 1,737,363 | ||||||||||
Average total loans | 1,443,760 | 1,336,175 | 1,336,937 | 1,303,199 | 1,211,348 | |||||||||||||||
Average interest-earning assets | 1,836,202 | 1,777,704 | 1,750,355 | 1,702,762 | 1,639,782 | |||||||||||||||
Average noninterest-bearing deposits | 344,827 | 328,304 | 330,913 | 314,677 | 304,483 | |||||||||||||||
Average interest-bearing deposits | 1,223,888 | 1,221,323 | 1,211,453 | 1,179,096 | 1,133,472 | |||||||||||||||
Average interest-bearing liabilities | 1,412,327 | 1,343,216 | 1,307,895 | 1,269,958 | 1,224,665 | |||||||||||||||
Average equity | 173,584 | 189,455 | 189,706 | 190,764 | 186,153 | |||||||||||||||
Average shares -- basic | 9,094,894 | 9,130,168 | 9,103,640 | 9,184,568 | 9,130,113 | |||||||||||||||
Average shares -- diluted | 9,166,131 | 9,225,368 | 9,189,252 | 9,268,076 | 9,248,667 |
(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 Six Months Ended | ||||||||
2022 | 2021 | |||||||
Performance ratios: (1) | ||||||||
Return on average assets | 0.55 | % | 0.73 | % | ||||
Return on average equity | 5.88 | 6.63 | ||||||
Average interest rate spread | 3.54 | 3.32 | ||||||
Net interest margin (2) | 3.65 | 3.43 | ||||||
Net interest margin - core (2) (4) | 3.63 | 3.43 | ||||||
Efficiency ratio (3) | 85.1 | 76.5 | ||||||
Equity to total assets | 8.13 | 10.55 | ||||||
Average interest-earning assets to average interest-bearing liabilities | 131.1 | 134.3 | ||||||
Book value per common share | $ | 16.60 | $ | 18.48 | ||||
Tangible performance ratios: | ||||||||
Tangible assets (4) | $ | 2,029,702 | $ | 1,787,389 | ||||
Tangible common equity (4) | 163,224 | 188,591 | ||||||
Tangible common equity ratio (4) | 8.04 | % | 10.55 | % | ||||
Return on tangible common equity (4) | 5.96 | 6.63 | ||||||
Tangible book value per common share (4) | $ | 16.40 | $ | 18.49 | ||||
Asset quality ratios: | ||||||||
Nonperforming assets to total assets at end of period (5) | 0.06 | % | 0.10 | % | ||||
Nonperforming loans to total loans (6) | 0.08 | 0.14 | ||||||
Allowance for loan losses to nonperforming loans (6) | 1268.90 | 817.71 | ||||||
Allowance for loan losses to total loans | 1.07 | 1.16 | ||||||
Net charge-offs to average outstanding loans | (0.02 | ) | (0.00 | ) | ||||
Capital ratios ( | ||||||||
Tier 1 leverage | 10.4 | % | 10.9 | % | ||||
Common equity Tier 1 capital | 12.7 | 14.5 | ||||||
Tier 1 risk-based | 12.7 | 14.5 | ||||||
Total risk-based | 13.6 | 15.6 | ||||||
Other Information: | ||||||||
Average total assets | $ | 1,931,868 | $ | 1,691,837 | ||||
Average total loans | 1,390,265 | 1,177,974 | ||||||
Average interest-earning assets | 1,807,115 | 1,594,797 | ||||||
Average noninterest-bearing deposits | 336,611 | 293,902 | ||||||
Average interest-bearing deposits | 1,222,612 | 1,112,907 | ||||||
Average interest-bearing liabilities | 1,377,962 | 1,187,908 | ||||||
Average equity | 181,475 | 186,162 | ||||||
Average shares -- basic | 9,082,373 | 9,146,113 | ||||||
Average shares -- diluted | 9,167,315 | 9,252,313 |
(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 | $ | 1,751 | $ | 7,209 | $ | 45,211 | $ | (5,458 | ) | $ | (43,460 | ) | ||||||||
Secured lines of credit | 12,989 | 11,084 | 13,685 | 1,905 | (696 | ) | ||||||||||||||
Unsecured lines of credit | 981 | 2,292 | 2,270 | (1,311 | ) | (1,289 | ) | |||||||||||||
SBA loans | 10,432 | 4,101 | — | 6,331 | 10,432 | |||||||||||||||
Other commercial business loans | 45,065 | 29,820 | 14,829 | 15,245 | 30,236 | |||||||||||||||
Total commercial business loans | $ | 71,218 | $ | 54,506 | $ | 75,995 | $ | 16,712 | $ | (4,777 | ) | |||||||||
Auto and other consumer loans breakout | ||||||||||||||||||||
Triad Manufactured Home loans | $ | 79,659 | $ | 78,222 | $ | 49,735 | $ | 1,437 | $ | 29,924 | ||||||||||
Woodside auto loans | 110,499 | 103,524 | 94,934 | 6,975 | 15,565 | |||||||||||||||
First Help auto loans | 6,724 | 7,245 | 4,608 | (521 | ) | 2,116 | ||||||||||||||
Other auto loans | 11,097 | 12,201 | 18,223 | (1,104 | ) | (7,126 | ) | |||||||||||||
Other consumer loans | 12,886 | 4,948 | 4,117 | 7,938 | 8,769 | |||||||||||||||
Total auto and other consumer loans | $ | 220,865 | $ | 206,140 | $ | 171,617 | $ | 14,725 | $ | 49,248 | ||||||||||
Construction and land loans breakout | ||||||||||||||||||||
1-4 Family construction | $ | 74,520 | $ | 71,025 | $ | 53,630 | $ | 3,495 | $ | 20,890 | ||||||||||
Multifamily construction | 88,922 | 84,448 | 58,097 | 4,474 | 30,825 | |||||||||||||||
Acquisition-renovation | 27,103 | 31,187 | 59,141 | (4,084 | ) | (32,038 | ) | |||||||||||||
Nonresidential construction | 12,651 | 10,819 | 3,156 | 1,832 | 9,495 | |||||||||||||||
Land and development | 11,198 | 11,916 | 9,661 | (718 | ) | 1,537 | ||||||||||||||
Total construction and land loans | $ | 214,394 | $ | 209,395 | $ | 183,685 | $ | 4,999 | $ | 30,709 | ||||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY
ADDITIONAL INFORMATION
(Dollars in thousands) (Unaudited)
Non-GAAP Financial Measures
This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, are included in this press release. 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.
Calculations Based on Tangible Common Equity:
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Total shareholders' equity | $ | 165,154 | $ | 177,776 | $ | 190,480 | $ | 187,444 | $ | 188,593 | ||||||||||
Less: | 1,176 | 1,180 | 1,183 | 1,186 | — | |||||||||||||||
Disallowed non-mortgage loan servicing rights | 754 | 951 | 870 | 556 | 2 | |||||||||||||||
Total tangible common equity | $ | 163,224 | $ | 175,645 | $ | 188,427 | $ | 185,702 | $ | 188,591 | ||||||||||
Total assets | $ | 2,031,632 | $ | 1,944,282 | $ | 1,921,081 | $ | 1,845,137 | $ | 1,787,391 | ||||||||||
Less: | 1,176 | 1,180 | 1,183 | 1,186 | — | |||||||||||||||
Disallowed non-mortgage loan servicing rights | 754 | 951 | 870 | 556 | 2 | |||||||||||||||
Total tangible assets | $ | 2,029,702 | $ | 1,942,151 | $ | 1,919,028 | $ | 1,843,395 | $ | 1,787,389 | ||||||||||
Average shareholders' equity | $ | 173,584 | $ | 189,455 | $ | 189,706 | $ | 190,764 | $ | 186,153 | ||||||||||
Less: Average goodwill and other intangible assets | 1,179 | 1,182 | 1,185 | 880 | — | |||||||||||||||
Average disallowed non-mortgage loan servicing rights | 949 | 1,381 | 560 | 8 | 1 | |||||||||||||||
Total average tangible common equity | $ | 171,456 | $ | 186,892 | $ | 187,961 | $ | 189,876 | $ | 186,152 | ||||||||||
Tangible common equity ratio (1) | 8.04 | % | 9.04 | % | 9.82 | % | 10.07 | % | 10.55 | % | ||||||||||
Net income | $ | 2,488 | $ | 2,806 | $ | 5,124 | $ | 4,178 | $ | 2,996 | ||||||||||
Return on tangible common equity (1) | 5.82 | % | 6.09 | % | 10.82 | % | 8.73 | % | 6.46 | % | ||||||||||
Common shares outstanding | 9,950,172 | 10,003,622 | 9,972,698 | 10,050,877 | 10,205,867 | |||||||||||||||
Tangible book value per common share (1) | $ | 16.40 | $ | 17.56 | $ | 18.89 | $ | 18.48 | $ | 18.49 | ||||||||||
GAAP Ratios: | ||||||||||||||||||||
Equity to total assets | 8.13 | % | 9.14 | % | 9.92 | % | 10.16 | % | 10.55 | % | ||||||||||
Return on average equity | 5.75 | % | 6.01 | % | 10.72 | % | 8.69 | % | 6.46 | % | ||||||||||
Book value per common share | $ | 16.60 | $ | 17.77 | $ | 19.10 | $ | 18.65 | $ | 18.48 |
(Dollars in thousands, except per share data) | ||||||||
Total shareholders' equity | $ | 165,154 | $ | 188,593 | ||||
Less: | 1,176 | — | ||||||
Disallowed non-mortgage loan servicing rights | 754 | 2 | ||||||
Total tangible common equity | $ | 163,224 | $ | 188,591 | ||||
Total assets | $ | 2,031,632 | $ | 1,787,391 | ||||
Less: | 1,176 | — | ||||||
Disallowed non-mortgage loan servicing rights | 754 | 2 | ||||||
Total tangible assets | $ | 2,029,702 | $ | 1,787,389 | ||||
Average shareholders' equity | $ | 181,475 | $ | 186,162 | ||||
Less: Average goodwill and other intangible assets | 1,180 | — | ||||||
Average disallowed non-mortgage loan servicing rights | 1,164 | 1 | ||||||
Total average tangible common equity | $ | 179,131 | $ | 186,161 | ||||
Tangible common equity ratio (1) | 8.04 | % | 10.55 | % | ||||
Net income | $ | 5,294 | $ | 6,116 | ||||
Return on tangible common equity (1) | 5.96 | % | 6.63 | % | ||||
Common shares outstanding | 9,950,172 | 10,205,867 | ||||||
Tangible book value per common share (1) | $ | 16.40 | $ | 18.49 | ||||
GAAP Ratios: | ||||||||
Equity to total assets | 8.13 | % | 10.55 | % | ||||
Return on average equity | 5.88 | % | 6.63 | % | ||||
Book value per common share | $ | 16.60 | $ | 18.48 |
Non-GAAP Financial Measures Footnote
(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. |
Contact:
360-457-0461
Source:
2022 GlobeNewswire, Inc., source