First Financial Northwest, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015
January 28, 2016 at 02:15 pm
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First Financial Northwest, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. For the quarter, total interest income was $9,464,000 against $9,606,000 a year ago. Net interest income was $7,692,000 against $7,997,000 a year ago. Net interest income after recapture of provision for loan losses was $8,592,000 against $9,197,000 a year ago. Income before federal income tax provision was $3,643,000 against $4,584,000 a year ago. Net income was $2,117,000 against $2,940,000 a year ago. Diluted earnings per share were $0.16 against $0.20 a year ago. Return on assets was 0.86% against 1.27% a year ago. Return on equity was 4.87% against 6.73% a year ago. Book value per common share was $12.40 against $11.96 a year ago.
For the full year, total interest income was $37,197,000 against $38,689,000 a year ago. This decline was due in large part to repayments received on higher yielding loans throughout 2015, resulting in a decline in the company's average balances of loans receivable and a decline in its loan portfolio yield compared to the prior year. Net interest income was $30,446,000 against $32,448,000 a year ago. These decreases were largely due to a decline in the yield on loan portfolio as loans originated in this low-interest rate environment were at rates lower than the rates on loans being repaid; excess liquidity in the form of low yielding interest-earning deposits; and increased interest expenses due to an increase in interest-bearing deposits and higher interest costs associated with acquiring longer term brokered deposits as part of interest rate risk management efforts. Net interest income after recapture of provision for loan losses was $32,646,000 against $34,548,000 a year ago. Income before federal income tax provision was $14,047,000 against $16,543,000 a year ago. Net income was $9,160,000 against $10,687,000 a year ago. Diluted earnings per share were $0.67 against $0.71 a year ago. Return on assets was 0.96% against 0.37% a year ago. Return on equity was 5.15% against 2.36% a year ago.
First Financial Northwest, Inc. is the holding company for First Financial Northwest Bank (the Bank). The Bank focuses on its lending activities primarily on loans secured by commercial real estate, construction/land, first mortgages on one-to-four family residences, multifamily, and business lending. It offers secured consumer loans, including savings account loans, auto loans and home equity loans that include lines of credit and second mortgage term loans. It originates construction/land loans primarily to residential builders for the construction of single-family residences, condominiums, townhouses, multifamily properties and residential developments located in its market area. Its land development loans are generally made to builders for preparation of a building site. Its investment portfolio consists of mortgage-backed securities, municipal bonds, United States government agency obligations, and corporate bonds. It serves King, Snohomish, Pierce and Kitsap counties, Washington.