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.