First Financial Northwest, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2011
January 27, 2012 at 09:06 pm
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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.
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.