First Financial Northwest, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2011. For the quarter, the company reported total interest income of $11,646,000, net interest income of $7,623,000, income before provision for federal income taxes of $927,000, net income of $927,000 or $0.05 per basic and diluted share compared to the total interest income of $14,447,000, net interest income of $8,459,000, income before provision for federal income taxes of $568,000, net income of $568,000 or $0.03 per basic and diluted share for the same quarter year ago. Return on assets was 0.34% compared to 0.19% for the same quarter year ago. Return on equity was 2.05% compared to 2.95% for the same quarter year ago. Interest income decreased $2.8 million to $11.6 million for the fourth quarter of 2011 from the same quarter in 2010, primarily due to the decrease in its average loan portfolio of $173.8 million, or 19.5% and a $70.5 million increase in relatively low yielding interest-bearing deposits. The decline in loan portfolio was the result of weaker loan demand, paydowns due to normal borrower activity, short sales, charge-offs and transfers of nonperforming loans to OREO. For the full year, the company reported total interest income of $51,052,000, net interest income of $32,567,000, income before provision for federal income taxes of $4,242,000, net income of $4,242,000 or $0.24 per basic and diluted share compared to the total interest income of $60,544,000, net interest income of $32,985,000, loss before provision for federal income taxes of $50,137,000, net loss of $54,136,000 or $3.11 per basic and diluted share for the same period year ago. Book value per common share as on December 31, 2011 was $9.64 compared to $9.28 as on December 31, 2010. Return on assets was 0.37% compared to negative return on assets of 4.18% a year ago. Return on equity was 2.36% compared to negative return on equity of 26.59% a year ago.