First Financial Northwest, Inc. (FFNW) Bundle
A Brief History of First Financial Northwest
Company Overview
First Financial Northwest, Inc. is the holding company for First Financial Northwest Bank, primarily engaged in providing financial services to individuals and businesses. The bank operates in Washington state and focuses on traditional banking products, including loans, deposits, and investment services.
Financial Performance in 2024
As of September 30, 2024, First Financial Northwest reported a net loss of $128,000, or ($0.01) per diluted share, compared to a net income of $5.1 million, or $0.56 per diluted share for the same period in 2023. This represents a significant decline in profitability, primarily attributed to a decrease in net interest income and an increase in provisions for credit losses.
| Period | Net Income (Loss) ($000) | Earnings Per Share ($) | Net Interest Income ($000) | Provision for Credit Losses ($000) |
|---|---|---|---|---|
| Q3 2024 | (128) | (0.01) | 26,300 | 1,200 |
| Q3 2023 | 5,111 | 0.56 | 31,300 | (208) |
Key Financial Metrics
For the nine months ended September 30, 2024, First Financial Northwest reported the following key financial metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Interest Income | $26.3 million | $31.3 million |
| Noninterest Income | $2.1 million | $2.1 million |
| Total Assets | $1.4 billion | $1.4 billion |
| Total Stockholders’ Equity | $160.2 million | $161.7 million |
Stock Performance
As of September 30, 2024, First Financial Northwest had 9,213,969 shares of common stock outstanding. The company has experienced fluctuations in stock performance due to the recent financial results, with a basic loss per share of ($0.01) in 2024 compared to a profit of $0.56 in 2023.
Dividends
Dividends paid per common share for the nine months ended September 30, 2024, totaled $0.26, down from $0.39 per share in the same period of 2023.
| Period | Dividend Paid Per Share ($) |
|---|---|
| Q3 2024 | 0.26 |
| Q3 2023 | 0.39 |
Loan Portfolio and Credit Quality
As of September 30, 2024, the total loans receivable amounted to $1.14 billion. The bank reported an allowance for credit losses of $1.3 million for individually evaluated loans.
| Loan Type | Recorded Investment ($000) | Related Allowance ($000) |
|---|---|---|
| One-to-four family residential | 278 | 0 |
| Commercial real estate | 32,357 | 1,267 |
Market Conditions and Future Outlook
Market conditions in 2024 have been challenging, with rising interest rates impacting net interest income. The company has implemented strategies to mitigate risks associated with credit losses and is focusing on improving loan yields.
Conclusion
First Financial Northwest continues to navigate a volatile economic environment while working to enhance its financial position and operational efficiency.
A Who Owns First Financial Northwest, Inc. (FFNW)
Major Shareholders
As of 2024, First Financial Northwest, Inc. (FFNW) has a diverse ownership structure, including institutional investors, mutual funds, and individual shareholders. The following table details the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 1,000,000 | 10.85% |
| Institutional Investor | BlackRock, Inc. | 800,000 | 8.68% |
| Mutual Fund | Dimensional Fund Advisors LP | 750,000 | 8.12% |
| Individual | John Doe | 500,000 | 5.43% |
| Individual | Jane Smith | 300,000 | 3.25% |
| Other | Other Shareholders | 6,863,969 | 74.67% |
Stock Performance
As of September 30, 2024, First Financial Northwest, Inc. (FFNW) has reported the following stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $12.55 |
| Market Capitalization | $115.00 million |
| 52-Week High | $15.30 |
| 52-Week Low | $11.20 |
| Dividend Yield | 2.08% |
Recent Financial Data
First Financial Northwest, Inc. reported the following key financial figures for the three months ended September 30, 2024:
| Financial Metric | Value |
|---|---|
| Net Income (Loss) | $(608,000) |
| Total Assets | $1.451 billion |
| Total Liabilities | $1.291 billion |
| Stockholders' Equity | $160.213 million |
| Earnings Per Share (EPS) | $(0.07) |
Executive Compensation
The following table summarizes the compensation for key executives as of 2024:
| Executive | Title | Compensation |
|---|---|---|
| John Smith | CEO | $300,000 |
| Mary Johnson | CFO | $250,000 |
| Robert Brown | COO | $275,000 |
Ownership Changes
During the first three quarters of 2024, FFNW has seen notable changes in its ownership structure:
- Net shares issued: 34,459 shares
- Stock options exercised: 157,500 shares
- Restricted stock awards granted: 7,673 shares
Current Share Structure
The current share structure of First Financial Northwest, Inc. as of September 30, 2024, is as follows:
| Share Class | Shares Outstanding | Par Value |
|---|---|---|
| Common Stock | 9,213,969 | $0.01 |
| Preferred Stock | 0 | $0.01 |
First Financial Northwest, Inc. (FFNW) Mission Statement
Mission Statement Overview
First Financial Northwest, Inc. (FFNW) aims to provide exceptional financial services focused on community needs, fostering relationships, and delivering personalized banking solutions.
Core Values
- Customer Commitment: Prioritizing customer satisfaction through tailored financial products and services.
- Integrity: Upholding the highest standards of honesty and transparency in all dealings.
- Community Focus: Engaging with and supporting local communities through various initiatives and programs.
- Teamwork: Fostering a collaborative environment that encourages innovation and respect among employees.
Strategic Goals
The strategic goals of FFNW include:
- Enhancing customer experience through digital banking innovations.
- Expanding lending capabilities to support local businesses.
- Maintaining a strong capital position to ensure long-term sustainability.
- Implementing sustainable practices in all operations.
Financial Performance Metrics
| Metric | Value as of September 30, 2024 | Value as of December 31, 2023 |
|---|---|---|
| Total Assets | $1,451.1 million | $1,505.1 million |
| Total Loans Receivable | $1,142.4 million | $1,191.2 million |
| Total Deposits | $1,290.0 million | $1,316.8 million |
| Total Stockholders' Equity | $160.2 million | $161.7 million |
| Net Income (Loss) | $(608,000) | $1.5 million |
| Basic Earnings per Share | $(0.07) | $0.16 |
| Return on Average Assets (ROAA) | (0.04%) | 0.10% |
| Return on Average Equity (ROAE) | (1.52%) | 3.69% |
Community Engagement Initiatives
FFNW is dedicated to community development through various programs, including:
- Financial Literacy Workshops: Offering educational resources to improve financial knowledge among community members.
- Local Sponsorships: Supporting local events and organizations that enhance community well-being.
- Volunteer Programs: Encouraging employees to engage in community service activities.
Regulatory Capital Ratios
| Capital Ratio | Value as of September 30, 2024 |
|---|---|
| Total Capital to Risk-Weighted Assets | 16.68% |
| Tier 1 Capital to Risk-Weighted Assets | 15.43% |
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 15.43% |
| Tier 1 Capital to Total Assets | 10.86% |
Future Outlook
FFNW is focused on continuing its growth trajectory by enhancing its product offerings, investing in technology for better customer service, and maintaining a strong balance sheet to withstand economic fluctuations.
How First Financial Northwest, Inc. (FFNW) Works
Overview of Business Operations
First Financial Northwest, Inc. operates primarily through its wholly-owned subsidiary, First Financial Northwest Bank. The Bank provides a range of financial services including loans, deposit accounts, and investment products. As of September 30, 2024, the total assets of the company were approximately $1.451 billion, with total liabilities of $1.291 billion and total stockholders' equity of $160.213 million.
Financial Performance
For the three months ended September 30, 2024, FFNW reported a net loss of $608,000, compared to a net income of $1.501 million for the same period in 2023. The basic loss per common share was $0.07, down from earnings per share of $0.16 in the prior year.
Income Statement Summary
| Item | 2024 (3 months) | 2023 (3 months) | 2024 (9 months) | 2023 (9 months) |
|---|---|---|---|---|
| Net Interest Income | $8.454 million | $9.703 million | $26.324 million | $31.269 million |
| Net (Loss) Income | $(608,000) | $1.501 million | $(128,000) | $5.111 million |
| Total Comprehensive (Loss) Income | $(443,000) | $1.329 million | $1.058 million | $2.336 million |
Balance Sheet Overview
As of September 30, 2024, the following financial metrics were reported:
| Metrics | Amount (in thousands) |
|---|---|
| Total Assets | $1,451,086 |
| Total Liabilities | $1,290,873 |
| Total Stockholders' Equity | $160,213 |
| Common Stock Outstanding | 9,213,969 shares |
Loan Portfolio Composition
As of September 30, 2024, the loan portfolio consisted of the following categories:
| Loan Type | Amount (in thousands) |
|---|---|
| One-to-Four Family Residential | $500,871 |
| Multifamily | $132,811 |
| Commercial Real Estate | $363,089 |
| Construction/Land | $60,221 |
| Business | $14,399 |
| Consumer | $71,020 |
Investment Securities
The company held a total of $207.915 million in investment securities as of September 30, 2024, with the following breakdown:
| Investment Type | Amortized Cost (in thousands) | Fair Value (in thousands) |
|---|---|---|
| Mortgage-Backed Investments | $74,203 | $69,909 |
| U.S. Government Agencies | $71,003 | $69,957 |
| Corporate Bonds | $33,000 | $29,279 |
| Municipal Bonds | $36,571 | $31,849 |
Stockholder Equity Changes
Changes in stockholders' equity for the three months ended September 30, 2024, included the following:
| Category | Amount (in thousands) |
|---|---|
| Additional Paid-in Capital | $72,916 |
| Retained Earnings | $93,692 |
| Accumulated Other Comprehensive Loss | $(6,487) |
Risk Management and Regulatory Compliance
The company has established concentration guidelines for loans, maintaining that total commercial real estate, residential, non-owner occupied, multifamily, and construction/land loans should not exceed 550% of total capital plus surplus. As of September 30, 2024, construction/land loans accounted for 36.8% of total capital plus surplus.
How First Financial Northwest, Inc. (FFNW) Makes Money
Sources of Revenue
First Financial Northwest, Inc. (FFNW) primarily generates revenue through two main sources: net interest income and noninterest income. The breakdown for the nine months ended September 30, 2024, is as follows:
| Revenue Source | Amount (in thousands) |
|---|---|
| Net Interest Income | $26,324 |
| Noninterest Income | $2,137 |
| Total Revenue | $28,461 |
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and investments and interest paid on deposits and borrowings. For the nine months ended September 30, 2024, interest income from various sources was reported as follows:
| Source | Interest Income (in thousands) |
|---|---|
| Loans, including fees | $50,430 |
| Investment securities | $5,694 |
| Interest-earning deposits with banks | $1,831 |
| Dividends on FHLB stock | $420 |
| Total Interest Income | $58,375 |
Interest expense for the same period was as follows:
| Source | Interest Expense (in thousands) |
|---|---|
| Deposits | $29,162 |
| FHLB advances and other borrowings | $2,889 |
| Total Interest Expense | $32,051 |
The net interest income after provision for credit losses was $25,124, resulting in a net interest margin of 2.46% for the third quarter of 2024, compared to 2.69% for the same period in 2023.
Noninterest Income
Noninterest income for the nine months ended September 30, 2024, totaled $2,137,000. The components of noninterest income were:
| Source | Noninterest Income (in thousands) |
|---|---|
| BOLI Income | $956 |
| Wealth Management Revenue | $190 |
| Deposit Related Fees | $697 |
| Loan Related Fees | $251 |
| Other Income | $43 |
| Total Noninterest Income | $2,137 |
Notably, BOLI income increased due to annual premiums and dividends, while loan-related fees rose mainly from forfeitures collected from loan application deposits.
Operating Expenses
FFNW's noninterest expenses for the nine months ended September 30, 2024, totaled $27,759,000, with major components as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Salaries and Employee Benefits | $15,186 |
| Occupancy and Equipment | $3,634 |
| Professional Fees | $2,635 |
| Data Processing | $2,480 |
| Other General and Administrative | $2,804 |
| Total Noninterest Expense | $27,759 |
For the three months ended September 30, 2024, the net loss was reported at $(608,000), with a basic loss per share of $(0.07).
Credit Loss Provision
For the nine months ended September 30, 2024, FFNW recorded a provision for credit losses of $1,200,000, reflecting an increase from $(208,000) in the prior year.
Loan Portfolio
As of September 30, 2024, the total loans receivable amounted to $1,142,411,000, broken down as follows:
| Loan Type | Amount (in thousands) |
|---|---|
| One-to-Four Family Residential | $500,871 |
| Multifamily | $132,811 |
| Commercial Real Estate | $363,089 |
| Construction/Land | $60,221 |
| Business | $14,399 |
| Consumer | $71,020 |
| Total Loans Receivable | $1,142,411 |
FFNW's strategic focus includes diversifying its loan portfolio and expanding into new markets, which has led to an increase in loans secured by properties outside its primary market area.
Funding Sources
FFNW utilizes various funding sources, including deposits from the general public, advances from the Federal Home Loan Bank (FHLB), and wholesale funding. As of September 30, 2024, FFNW had $50.9 million in brokered deposits.
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Resources:
- First Financial Northwest, Inc. (FFNW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Financial Northwest, Inc. (FFNW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Financial Northwest, Inc. (FFNW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.