"First Fed generated solid first quarter results despite the well-publicized challenges in the banking industry," said
The Board of Directors of
FINANCIAL HIGHLIGHTS | 1Q 23 | 4Q 22 | 1Q 22 | 1Q 23 Highlights | |||||||||||
FINANCIAL RESULTS (in millions) | ● | Deposit growth year-to-date of | |||||||||||||
Operating revenue (1) | $ | 18.6 | $ | 22.3 | $ | 17.9 | – | Retail growth | |||||||
Noninterest expense | 14.9 | 15.1 | 14.8 | – | Brokered growth | ||||||||||
Pre-provision net income | 16.3 | 18.9 | 15.5 | ||||||||||||
Net income | 3.5 | 6.1 | 2.8 | ● | Loan growth year-to-date of | ||||||||||
PER SHARE DATA | or 2% | ||||||||||||||
Basic and diluted earnings | $ | 0.39 | $ | 0.66 | $ | 0.30 | |||||||||
Book value | 16.57 | 16.31 | 17.77 | ● | Deposit insurance coverage update: | ||||||||||
Tangible book value * | 16.38 | 16.13 | 17.56 | – | Estimated uninsured deposits totaling | ||||||||||
BALANCE SHEET (in millions) | |||||||||||||||
Total loans | $ | 1,579 | $ | 1,548 | $ | 1,386 | of total deposits | ||||||||
Total deposits | 1,594 | 1,564 | 1,549 | 42% of uninsured in urban areas | |||||||||||
Total shareholders' equity | 160 | 158 | 178 | 58% of uninsured in rural areas | |||||||||||
ASSET QUALITY | – | Estimated collateralized deposits to total | |||||||||||||
Net charge-off ratio | 0.25 | % | 0.11 | % | 0.00 | % | deposits of 7% | ||||||||
Nonperforming assets to total assets | 0.12 | 0.09 | 0.06 | – | Estimated insured deposits to total | ||||||||||
Allowance for credit losses on loans | deposits of 76% | ||||||||||||||
to total loans | 1.10 | 1.04 | 1.09 | ||||||||||||
Nonperforming loan coverage ratio | 661 | 900 | 1,227 | ● | Liquidity: | ||||||||||
SELECTED RATIOS | Increased on balance sheet liquidity | ||||||||||||||
Return on average assets | 0.70 | % | 1.18 | % | 0.60 | % | in response to recent bank failures. | ||||||||
Return on average equity | 8.98 | 15.26 | 6.01 | ||||||||||||
Return on average tangible equity * | 9.08 | 15.45 | 6.09 | ● | Asset quality: | ||||||||||
Net interest margin | 3.46 | 3.96 | 3.53 | Credit metrics remain stable. Past due and | |||||||||||
Efficiency ratio | 79.78 | 67.91 | 82.91 | nonperforming balances remain low. | |||||||||||
Common equity tier 1 (CETI) ratio | 13.34 | 13.40 | 13.67 | ||||||||||||
Total risk-based capital ratio | 14.36 | 14.42 | 14.73 |
(1) Net interest income before provision plus noninterest income
* See reconciliation of Non-GAAP Financial Measures later in this release.
The Company implemented the Current Expected Credit Loss (“CECL”) model for estimating the allowance for losses on loans and other assets effective
Net Interest Income
Total interest income decreased $379,000 to $23.3 million for the first quarter of 2023, compared to $23.7 million in the previous quarter, and increased $6.4 million from $16.9 million in the first quarter of 2022. Interest income decreased in the current quarter due to a higher reduction in fees related to the prepayment of certain loans compared to the prior quarter in excess of the gains recorded from higher yields on earning assets. Interest and fees on loans increased year-over-year, in part, as the Company's banking subsidiary,
Total interest expense was $7.0 million for the first quarter of 2023, compared to $4.7 million in the fourth quarter of 2022 and $1.4 million in the first quarter a year ago. Current quarter interest expense was higher due to a 50 basis point increase in the cost of deposits to 1.12% at March 31, 2023, from 0.62% at the prior quarter end. The increase over the first quarter of 2022 was the result of a 93 basis point increase in the cost of deposits from 0.19% one year prior along with higher volumes of short-term FHLB advances and certificates of deposit ("CDs"). A shift in the deposit mix from transaction and money market accounts to a higher volume of savings accounts and CDs, primarily promotional, resulted in higher costs of deposits.
Net interest income before provision for credit losses for the first quarter of 2023 decreased 13.9% to
The Company recorded a
The net interest margin decreased to 3.46% for the first quarter of 2023, from 3.96% the prior quarter, and decreased 7 basis points compared to the first quarter of 2022 of 3.53%. Decreases from both the prior quarter and the prior year are primarily due to higher funding costs for both deposits and borrowed funds.
The yield on average earning assets of 4.95% for the first quarter of 2023, was flat compared to the fourth quarter of 2022, and increased 109 basis points from 3.86% for the first quarter of 2022. Higher loan rates at origination and increased yields on variable-rate loans were offset by a decline in the recognition of fees related to the prepayment of certain loans during the fourth quarter. The year-over-year increase was primarily due to higher average loan balances augmented by increases in yields, which were positively impacted by the rising rate environment and overall improvements in the mix of interest-earning assets.
The cost of average interest-bearing liabilities increased to 1.81% for the first quarter of 2023, compared to 1.24% for the fourth quarter of 2022, and increased from 0.43% for the first quarter of 2022. Total cost of funds increased to 1.53% for the first quarter of 2023 from 1.02% in the prior quarter and increased from 0.34% for the first quarter of 2022. Current quarter increases were due to higher costs on interest-bearing deposits and advances in addition to an increase in average certificate of deposit balances.
The increase over the same quarter last year was driven by higher rates paid on deposits. The Company has attracted and retained funding through the use of promotional products. The mix of retail deposit balances has shifted away from non-maturity accounts towards higher cost term certificate and savings products. Retail CDs represented 22.8%, 17.3% and 11.7% of retail deposits at
Selected Yields | 1Q 23 | 4Q 22 | 3Q 22 | 2Q 22 | 1Q 22 | |||||||||||||||
Loan yield | 5.16 | % | 5.22 | % | 4.75 | % | 4.48 | % | 4.43 | % | ||||||||||
Investment securities yield | 3.93 | 3.71 | 3.21 | 2.96 | 2.57 | |||||||||||||||
Cost of interest-bearing deposits | 1.37 | 0.78 | 0.41 | 0.26 | 0.24 | |||||||||||||||
Cost of deposits | 1.12 | 0.62 | 0.32 | 0.20 | 0.19 | |||||||||||||||
Cost of borrowed funds | 3.92 | 3.30 | 2.50 | 1.96 | 2.32 | |||||||||||||||
Net interest spread | 3.14 | 3.72 | 3.72 | 3.65 | 3.43 | |||||||||||||||
Net interest margin | 3.46 | 3.96 | 3.88 | 3.77 | 3.53 | |||||||||||||||
Noninterest Income
Noninterest income declined 30.7% to $2.3 million for the first quarter of 2023 from $3.4 million for the fourth quarter of 2022 from the prior quarter due partly to the non-recurring BOLI death benefit payment recorded in the fourth quarter of 2022. Noninterest income declined slightly from the same quarter one year ago, with decreases in gain on sale of loans and gain on sale investment securities. Saleable mortgage loan production continues to be hindered by reduced refinancing activity due to rising market rates on mortgage loans and a lack of single-family home inventory compared to the prior year.
Noninterest Income | ||||||||||||||||||||
$ in thousands | 1Q 23 | 4Q 22 | 3Q 22 | 2Q 22 | 1Q 22 | |||||||||||||||
Loan and deposit service fees | $ | 1,141 | $ | 1,163 | $ | 1,302 | 1,091 | $ | 1,173 | |||||||||||
Sold loan servicing fees and servicing right mark-to-market | 493 | 202 | 206 | 27 | 432 | |||||||||||||||
Net gain on sale of loans | 176 | 55 | 285 | 231 | 253 | |||||||||||||||
Net gain on sale of investment securities | — | — | — | (8 | ) | 126 | ||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 226 | 230 | 221 | 213 | 252 | |||||||||||||||
Income from death benefit on bank-owned life insurance, net | — | 1,489 | — | — | — | |||||||||||||||
Other income | 298 | 229 | 320 | 668 | 167 | |||||||||||||||
Total noninterest income | $ | 2,334 | $ | 3,368 | $ | 2,334 | $ | 2,222 | $ | 2,403 | ||||||||||
Noninterest Expense
Noninterest expense totaled $14.9 million for the first quarter of 2023, compared to $15.1 million for the preceding quarter and $14.8 million for the first quarter a year ago. Compensation and benefits was lower due to a decrease in medical insurance and payroll tax expense as well as lower commissions and incentives paid. The payroll tax expense was reduced in the first quarter of 2023 by a portion of the Employee Retention Credit ("ERC") received in
Noninterest Expense | ||||||||||||||||||||
$ in thousands | 1Q 23 | 4Q 22 | 3Q 22 | 2Q 22 | 1Q 22 | |||||||||||||||
Compensation and benefits | $ | 7,837 | $ | 8,357 | $ | 9,045 | $ | 9,735 | $ | 8,803 | ||||||||||
Data processing | 2,038 | 2,119 | 1,778 | 1,870 | 1,772 | |||||||||||||||
Occupancy and equipment | 1,209 | 1,300 | 1,499 | 1,432 | 1,167 | |||||||||||||||
Supplies, postage, and telephone | 355 | 333 | 322 | 408 | 313 | |||||||||||||||
Regulatory assessments and state taxes | 389 | 372 | 365 | 441 | 361 | |||||||||||||||
Advertising | 1,041 | 486 | 645 | 1,370 | 752 | |||||||||||||||
Professional fees | 806 | 762 | 695 | 629 | 559 | |||||||||||||||
257 | 235 | 219 | 211 | 223 | ||||||||||||||||
Other expense | 939 | 1,179 | 807 | 867 | 881 | |||||||||||||||
Total noninterest expense | $ | 14,871 | $ | 15,143 | $ | 15,375 | $ | 16,963 | $ | 14,831 | ||||||||||
Efficiency ratio | 79.78 | % | 67.91 | % | 74.86 | % | 87.15 | % | 82.91 | % | ||||||||||
Investment securities increased
$ in thousands | 1Q 23 | 4Q 22 | 3Q 22 | 2Q 22 | 1Q 22 | |||||||||||||||
Municipal bonds | $ | 101,910 | $ | 98,050 | $ | 96,130 | $ | 104,048 | $ | 110,248 | ||||||||||
2,390 | 2,364 | 2,355 | 2,420 | 2,450 | ||||||||||||||||
International agency issued bonds (Agency bonds) | 1,745 | 1,702 | 1,683 | 1,762 | 1,811 | |||||||||||||||
Corporate issued debt securities (Corporate debt) | 55,117 | 55,499 | 56,165 | 57,977 | 59,904 | |||||||||||||||
— | — | — | — | 2,777 | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
74,946 | 75,648 | 78,231 | 85,796 | 96,064 | ||||||||||||||||
Non-agency issued mortgage-backed securities (MBS non-agency) | 92,978 | 93,306 | 94,872 | 101,141 | 104,441 | |||||||||||||||
Loans and Unfunded Loan Commitments
Net loans, excluding loans held for sale, increased
The Company originated $5.8 million in residential mortgages during the first quarter of 2023 and sold
Loans by Collateral and Unfunded Commitments | ||||||||||||||||||||
$ in thousands | 1Q 23 | 4Q 22 | 3Q 22 | 2Q 22 | 1Q 22 | |||||||||||||||
One-to-four family construction | $ | 65,770 | $ | 63,021 | $ | 58,038 | $ | 60,848 | $ | 70,091 | ||||||||||
All other construction and land | 95,769 | 130,588 | 157,527 | 152,024 | 137,611 | |||||||||||||||
One-to-four family first mortgage | 394,595 | 384,255 | 374,309 | 351,813 | 331,788 | |||||||||||||||
One-to-four family junior liens | 9,140 | 8,219 | 7,244 | 2,701 | 2,969 | |||||||||||||||
One-to-four family revolving open-end | 30,473 | 29,909 | 27,496 | 25,438 | 20,897 | |||||||||||||||
Commercial real estate, owner occupied: | ||||||||||||||||||||
Health care | 23,311 | 23,463 | 23,909 | 24,058 | 24,235 | |||||||||||||||
Office | 22,246 | 22,583 | 23,002 | 24,311 | 25,936 | |||||||||||||||
Warehouse | 16,782 | 20,411 | 18,479 | 21,144 | 21,174 | |||||||||||||||
Other | 52,212 | 47,778 | 38,282 | 31,375 | 29,142 | |||||||||||||||
Commercial real estate, non-owner occupied: | ||||||||||||||||||||
Office | 58,711 | 59,216 | 60,655 | 62,971 | 61,522 | |||||||||||||||
Retail | 52,175 | 54,800 | 53,186 | 50,818 | 48,929 | |||||||||||||||
Hospitality | 45,978 | 46,349 | 44,359 | 44,845 | 53,633 | |||||||||||||||
Other | 93,207 | 89,047 | 98,386 | 96,597 | 79,585 | |||||||||||||||
Multi-family residential | 284,699 | 252,765 | 242,509 | 220,677 | 203,101 | |||||||||||||||
Commercial business loans | 80,825 | 73,963 | 69,626 | 69,888 | 52,848 | |||||||||||||||
Commercial agriculture and fishing loans | 1,829 | 1,847 | 938 | 525 | 539 | |||||||||||||||
State and political subdivision obligations | 439 | 439 | 472 | 472 | 472 | |||||||||||||||
Consumer automobile loans | 136,540 | 136,213 | 134,221 | 133,364 | 127,712 | |||||||||||||||
Consumer loans secured by other assets | 114,343 | 102,333 | 104,272 | 102,685 | 93,165 | |||||||||||||||
Consumer loans unsecured | 420 | 352 | 481 | 745 | 367 | |||||||||||||||
Total loans | $ | 1,579,464 | $ | 1,547,551 | $ | 1,537,391 | $ | 1,477,299 | $ | 1,385,716 | ||||||||||
Unfunded loan commitments | $ | 203,014 | $ | 225,836 | $ | 231,208 | $ | 250,311 | $ | 260,391 | ||||||||||
Deposits
Total deposits increased
Demand deposits decreased 9.4% compared to a year ago to
The Company estimates that approximately 17% of total deposits are uninsured. Consumer deposits make up 62% of total deposits with an average balance of approximately
Deposits | ||||||||||||||||||||
$ in thousands | 1Q 23 | 4Q 22 | 3Q 22 | 2Q 22 | 1Q 22 | |||||||||||||||
Noninterest-bearing demand deposits | $ | 292,119 | $ | 315,083 | $ | 342,808 | $ | 336,311 | $ | 326,289 | ||||||||||
Interest-bearing demand deposits | 189,187 | 193,558 | 192,504 | 192,114 | 204,949 | |||||||||||||||
Money market accounts | 402,760 | 473,009 | 519,018 | 587,747 | 581,804 | |||||||||||||||
Savings accounts | 242,117 | 200,920 | 196,780 | 195,029 | 197,351 | |||||||||||||||
Certificates of deposit, retail | 333,510 | 247,824 | 224,574 | 183,823 | 173,281 | |||||||||||||||
Certificates of deposit, brokered | 134,515 | 133,861 | 129,551 | 85,700 | 65,740 | |||||||||||||||
Total deposits | $ | 1,594,208 | $ | 1,564,255 | $ | 1,605,235 | $ | 1,580,724 | $ | 1,549,414 | ||||||||||
Noninterest-bearing deposits to total deposits | 18 | % | 20 | % | 21 | % | 21 | % | 21 | % | ||||||||||
Total loans to total deposits | 99 | % | 99 | % | 96 | % | 93 | % | 89 | % | ||||||||||
Asset Quality
Nonperforming loans were $2.6 million at
$ in thousands | 1Q 23 | 4Q 22 | 3Q 22 | 2Q 22 | 1Q 22 | |||||||||||||||
Allowance for credit losses on loans to total loans | 1.10 | % | 1.04 | % | 1.06 | % | 1.07 | % | 1.09 | % | ||||||||||
Allowance for credit losses on loans to nonperforming loans | 661 | 900 | 463 | 1269 | 1227 | |||||||||||||||
Nonperforming loans to total loans | 0.17 | 0.12 | 0.22 | 0.08 | 0.09 | |||||||||||||||
Net charge-off ratio (annualized) | 0.25 | 0.11 | 0.06 | (0.03 | ) | 0.00 | ||||||||||||||
Total nonperforming loans | $ | 2,633 | $ | 1,790 | $ | 3,517 | $ | 1,241 | $ | 1,233 | ||||||||||
Reserve for unfunded commitments | $ | 1,336 | $ | 325 | $ | 331 | $ | 358 | $ | 368 | ||||||||||
Capital
Total shareholders’ equity increased to
Tangible book value per common share* was $16.38 at
Capital levels for both the Company and its operating bank, First Fed, remain in excess of applicable regulatory requirements and the Bank was categorized as "well-capitalized" at
1Q 23 | 4Q 22 | 3Q 22 | 2Q 22 | 1Q 22 | ||||||||||||||||
Equity to total assets | 7.38 | % | 7.75 | % | 7.49 | % | 8.13 | % | 9.14 | % | ||||||||||
Tangible common equity ratio * | 7.30 | 7.67 | 7.40 | 8.04 | 9.04 | |||||||||||||||
Capital ratios ( | ||||||||||||||||||||
Tier 1 leverage | 10.41 | 10.41 | 10.50 | 10.41 | 10.61 | |||||||||||||||
Common equity Tier 1 capital | 13.34 | 13.40 | 13.13 | 13.21 | 13.67 | |||||||||||||||
Tier 1 risk-based | 13.34 | 13.40 | 13.13 | 13.21 | 13.67 | |||||||||||||||
Total risk-based | 14.36 | 14.42 | 14.16 | 14.24 | 14.73 | |||||||||||||||
Share Repurchase Program and Cash Dividend
First Northwest continued to return capital to our shareholders through cash dividends and share repurchases during the first quarter of 2023. We repurchased 44,441 shares of common stock under the Company's
____________
* See reconciliation of Non-GAAP Financial Measures later in this release.
Awards/Recognition
The Company has received several accolades as a leader in the community.
In
In
Additionally, in June 2022 First Fed was named on the Puget Sound Business Journal’s Best Workplaces list. First Fed has been recognized as one the top 100 workplaces in
In
In
About the Company
Forward-Looking Statements
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding our mission and vision. These forward-looking statements are based upon current management expectations and may, therefore, involve risks and uncertainties. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits or declines in the value of our investment portfolio; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and other factors described in the Company’s latest Annual Report on Form 10-K and other filings with the
Any of the forward-looking statements that we make in this Press Release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company's operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2023 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s operations and stock price performance.
For More Information Contact:
IRGroup@ourfirstfed.com
360-457-0461
FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited) | ||||||||||||||||||||
2023 | 2022 | 2022 | Three Month Change | One Year Change | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 17,844 | $ | 17,104 | $ | 16,271 | 4.3 | % | 9.7 | % | ||||||||||
Interest-earning deposits in banks | 122,773 | 28,492 | 66,257 | 330.9 | 85.3 | |||||||||||||||
Investment securities available for sale, at fair value | 329,086 | 326,569 | 377,695 | 0.8 | -12.9 | |||||||||||||||
Loans held for sale | — | 597 | 1,334 | -100.0 | -100.0 | |||||||||||||||
Loans receivable (net of allowance for credit losses loans | 1,562,068 | 1,531,435 | 1,370,589 | 2.0 | 14.0 | |||||||||||||||
15,602 | 11,681 | 8,122 | 33.6 | 92.1 | ||||||||||||||||
Accrued interest receivable | 7,205 | 6,743 | 5,696 | 6.9 | 26.5 | |||||||||||||||
Premises and equipment, net | 18,252 | 18,089 | 21,050 | 0.9 | -13.3 | |||||||||||||||
Servicing rights on sold loans, at fair value | 4,224 | 3,887 | 4,046 | 8.7 | 4.4 | |||||||||||||||
Bank-owned life insurance, net | 39,878 | 39,665 | 39,570 | 0.5 | 0.8 | |||||||||||||||
Equity and partnership investments | 14,392 | 14,289 | 3,777 | 0.7 | 281.0 | |||||||||||||||
1,088 | 1,089 | 1,180 | -0.1 | -7.8 | ||||||||||||||||
Deferred tax asset, net | 14,211 | 14,091 | 5,809 | 0.9 | 144.6 | |||||||||||||||
Prepaid expenses and other assets | 25,471 | 28,339 | 22,886 | -10.1 | 11.3 | |||||||||||||||
Total assets | $ | 2,172,094 | $ | 2,042,070 | $ | 1,944,282 | 6.4 | % | 11.7 | % | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Deposits | $ | 1,594,208 | $ | 1,564,255 | $ | 1,549,414 | 1.9 | % | 2.9 | % | ||||||||||
Borrowings | 379,377 | 285,358 | 184,250 | 32.9 | 105.9 | |||||||||||||||
Accrued interest payable | 508 | 455 | 13 | 11.6 | 3,807.7 | |||||||||||||||
Accrued expenses and other liabilities | 35,255 | 32,344 | 30,691 | 9.0 | 14.9 | |||||||||||||||
Advances from borrowers for taxes and insurance | 2,410 | 1,376 | 2,138 | 75.1 | 12.7 | |||||||||||||||
Total liabilities | 2,011,758 | 1,883,788 | 1,766,506 | 6.8 | 13.9 | |||||||||||||||
Shareholders' Equity | ||||||||||||||||||||
Preferred stock, | — | — | — | n/a | n/a | |||||||||||||||
Common stock, | 97 | 97 | 100 | 0.0 | -3.0 | |||||||||||||||
Additional paid-in capital | 95,333 | 95,508 | 96,473 | -0.2 | -1.2 | |||||||||||||||
Retained earnings | 114,139 | 114,424 | 105,546 | -0.2 | 8.1 | |||||||||||||||
Accumulated other comprehensive loss, net of tax | (38,108 | ) | (40,543 | ) | (15,153 | ) | 6.0 | -151.5 | ||||||||||||
Unearned employee stock ownership plan (ESOP) shares | (7,749 | ) | (7,913 | ) | (8,407 | ) | 2.1 | 7.8 | ||||||||||||
Total parent's shareholders' equity | 163,712 | 161,573 | 178,559 | 1.3 | -8.3 | |||||||||||||||
Noncontrolling interest in | (3,376 | ) | (3,291 | ) | (783 | ) | -2.6 | -331.2 | ||||||||||||
Total shareholders' equity | 160,336 | 158,282 | 177,776 | 1.3 | -9.8 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,172,094 | $ | 2,042,070 | $ | 1,944,282 | 6.4 | % | 11.7 | % |
FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
2023 | 2022 | 2022 | Three Month Change | One Year Change | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Interest and fees on loans receivable | $ | 19,504 | $ | 20,240 | $ | 14,536 | -3.6 | % | 34.2 | % | ||||||||||
Interest on investment securities | 3,182 | 3,059 | 2,275 | 4.0 | 39.9 | |||||||||||||||
Interest on deposits in banks | 404 | 173 | 38 | 133.5 | 963.2 | |||||||||||||||
FHLB dividends | 192 | 189 | 52 | 1.6 | 269.2 | |||||||||||||||
Total interest income | 23,282 | 23,661 | 16,901 | -1.6 | 37.8 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 4,353 | 2,434 | 717 | 78.8 | 507.1 | |||||||||||||||
Borrowings | 2,624 | 2,297 | 698 | 14.2 | 275.9 | |||||||||||||||
Total interest expense | 6,977 | 4,731 | 1,415 | 47.5 | 393.1 | |||||||||||||||
Net interest income | 16,305 | 18,930 | 15,486 | -13.9 | 5.3 | |||||||||||||||
(Recapture of) provision for credit losses | (500 | ) | 285 | — | -275.4 | 100.0 | ||||||||||||||
Net interest income after (recapture of) provision for credit losses | 16,805 | 18,645 | 15,486 | -9.9 | 8.5 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Loan and deposit service fees | 1,141 | 1,163 | 1,173 | -1.9 | -2.7 | |||||||||||||||
Sold loan servicing fees and servicing right mark-to-market | 493 | 202 | 432 | 144.1 | 14.1 | |||||||||||||||
Net gain on sale of loans | 176 | 55 | 253 | 220.0 | -30.4 | |||||||||||||||
Net gain on sale of investment securities | — | — | 126 | n/a | -100.0 | |||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 226 | 230 | 252 | -1.7 | -10.3 | |||||||||||||||
Income from death benefit on bank-owned life insurance, net | — | 1,489 | — | -100.0 | n/a | |||||||||||||||
Other income | 298 | 229 | 167 | 30.1 | 78.4 | |||||||||||||||
Total noninterest income | 2,334 | 3,368 | 2,403 | -30.7 | -2.9 | |||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Compensation and benefits | 7,837 | 8,357 | 8,803 | -6.2 | -11.0 | |||||||||||||||
Data processing | 2,038 | 2,119 | 1,772 | -3.8 | 15.0 | |||||||||||||||
Occupancy and equipment | 1,209 | 1,300 | 1,167 | -7.0 | 3.6 | |||||||||||||||
Supplies, postage, and telephone | 355 | 333 | 313 | 6.6 | 13.4 | |||||||||||||||
Regulatory assessments and state taxes | 389 | 372 | 361 | 4.6 | 7.8 | |||||||||||||||
Advertising | 1,041 | 486 | 752 | 114.2 | 38.4 | |||||||||||||||
Professional fees | 806 | 762 | 559 | 5.8 | 44.2 | |||||||||||||||
257 | 235 | 223 | 9.4 | 15.2 | ||||||||||||||||
Other expense | 939 | 1,179 | 881 | -20.4 | 6.6 | |||||||||||||||
Total noninterest expense | 14,871 | 15,143 | 14,831 | -1.8 | 0.3 | |||||||||||||||
Income before provision for income taxes | 4,268 | 6,870 | 3,058 | -37.9 | 39.6 | |||||||||||||||
Provision for income taxes | 825 | 1,008 | 554 | -18.2 | 48.9 | |||||||||||||||
Net income | 3,443 | 5,862 | 2,504 | -41.3 | 37.5 | |||||||||||||||
Net loss attributable to noncontrolling interest in | 85 | 198 | 302 | -57.1 | -71.9 | |||||||||||||||
Net income attributable to parent | $ | 3,528 | $ | 6,060 | $ | 2,806 | -41.8 | % | 25.7 | % | ||||||||||
Basic and diluted earnings per common share | $ | 0.39 | $ | 0.66 | $ | 0.30 | -40.9 | % | 30.0 | % |
FIRST NORTHWEST BANCORP AND SUBSIDIARY Selected Financial Ratios and Other Data (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||||||||
As of or For the Quarter Ended | ||||||||||||||||||||
2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||
Performance ratios: (1) | ||||||||||||||||||||
Return on average assets | 0.70 | % | 1.18 | % | 0.85 | % | 0.51 | % | 0.60 | % | ||||||||||
Return on average equity | 8.98 | 15.26 | 10.12 | 5.75 | 6.01 | |||||||||||||||
Average interest rate spread | 3.14 | 3.72 | 3.72 | 3.65 | 3.43 | |||||||||||||||
Net interest margin (2) | 3.46 | 3.96 | 3.88 | 3.77 | 3.53 | |||||||||||||||
Efficiency ratio (3) | 79.8 | 67.9 | 74.9 | 87.2 | 82.9 | |||||||||||||||
Equity to total assets | 7.38 | 7.75 | 7.49 | 8.13 | 9.14 | |||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 122.4 | 124.8 | 128.6 | 130.0 | 132.3 | |||||||||||||||
Book value per common share | $ | 16.57 | $ | 16.31 | $ | 15.69 | $ | 16.60 | $ | 17.77 | ||||||||||
Tangible performance ratios: | ||||||||||||||||||||
Tangible assets (4) | $ | 2,170,202 | $ | 2,040,267 | $ | 2,089,454 | $ | 2,029,702 | $ | 1,942,151 | ||||||||||
Tangible common equity (4) | 158,444 | 156,479 | 154,612 | 163,224 | 175,645 | |||||||||||||||
Tangible common equity ratio (4) | 7.30 | % | 7.67 | % | 7.40 | % | 8.04 | % | 9.04 | % | ||||||||||
Return on tangible common equity (4) | 9.08 | 15.45 | 10.23 | 5.82 | 6.09 | |||||||||||||||
Tangible book value per common share (4) | $ | 16.38 | $ | 16.13 | $ | 15.50 | $ | 16.40 | $ | 17.56 | ||||||||||
Asset quality ratios: | ||||||||||||||||||||
Nonperforming assets to total assets at end of period (5) | 0.12 | % | 0.09 | % | 0.17 | % | 0.06 | % | 0.06 | % | ||||||||||
Nonperforming loans to total loans (6) | 0.17 | 0.12 | 0.22 | 0.08 | 0.09 | |||||||||||||||
Allowance for credit losses on loans to nonperforming loans (6) | 660.69 | 900.34 | 462.70 | 1268.90 | 1226.85 | |||||||||||||||
Allowance for credit losses on loans to total loans | 1.10 | 1.04 | 1.06 | 1.07 | 1.09 | |||||||||||||||
Annualized net charge-offs (recoveries) to average outstanding loans | 0.25 | 0.11 | 0.06 | (0.03 | ) | 0.00 | ||||||||||||||
Capital ratios ( | ||||||||||||||||||||
Tier 1 leverage | 10.4 | % | 10.4 | % | 10.5 | % | 10.4 | % | 10.6 | % | ||||||||||
Common equity Tier 1 capital | 13.3 | 13.4 | 13.1 | 13.2 | 13.7 | |||||||||||||||
Tier 1 risk-based | 13.3 | 13.4 | 13.1 | 13.2 | 13.7 | |||||||||||||||
Total risk-based | 14.4 | 14.4 | 14.2 | 14.2 | 14.7 | |||||||||||||||
Other Information: | ||||||||||||||||||||
Average total assets | $ | 2,050,210 | $ | 2,039,016 | $ | 1,996,765 | $ | 1,963,665 | $ | 1,899,717 | ||||||||||
Average total loans | 1,552,299 | 1,554,276 | 1,500,508 | 1,455,038 | 1,345,279 | |||||||||||||||
Average interest-earning assets | 1,909,271 | 1,895,799 | 1,859,396 | 1,836,202 | 1,777,704 | |||||||||||||||
Average noninterest-bearing deposits | 294,235 | 326,450 | 342,944 | 344,827 | 328,304 | |||||||||||||||
Average interest-bearing deposits | 1,288,429 | 1,243,185 | 1,224,548 | 1,223,888 | 1,221,323 | |||||||||||||||
Average interest-bearing liabilities | 1,559,983 | 1,519,106 | 1,446,428 | 1,412,327 | 1,343,216 | |||||||||||||||
Average equity | 159,319 | 157,590 | 168,264 | 173,584 | 189,455 | |||||||||||||||
Average shares -- basic | 8,911,294 | 9,069,493 | 9,093,821 | 9,094,894 | 9,130,168 | |||||||||||||||
Average shares -- diluted | 8,939,601 | 9,106,453 | 9,138,123 | 9,166,131 | 9,225,368 |
(1 | ) | Performance ratios are annualized, where appropriate. |
(2 | ) | Net interest income divided by average interest-earning assets. |
(3 | ) | Total noninterest expense as a percentage of net interest income and total other noninterest income. |
(4 | ) | See reconciliation of Non-GAAP Financial Measures later in this release. |
(5 | ) | Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets. |
(6 | ) | Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due. |
FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited) | ||||||||||||||||||||
Selected loan detail: | ||||||||||||||||||||
2023 | 2022 | 2022 | Three Month Change | One Year Change | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Commercial business loans breakout | ||||||||||||||||||||
PPP loans | $ | 72 | $ | 86 | $ | 6,992 | $ | (14 | ) | $ | (6,920 | ) | ||||||||
Secured lines of credit | 30,723 | 15,279 | 10,988 | 15,444 | 19,735 | |||||||||||||||
Unsecured lines of credit | 588 | 1,276 | 2,300 | (688 | ) | (1,712 | ) | |||||||||||||
SBA loans | 8,805 | 8,056 | 4,349 | 749 | 4,456 | |||||||||||||||
Other commercial business loans | 59,798 | 52,230 | 29,150 | 7,568 | 30,648 | |||||||||||||||
Total commercial business loans | $ | 99,986 | $ | 76,927 | $ | 53,779 | $ | 23,059 | $ | 46,207 | ||||||||||
Auto and other consumer loans breakout | ||||||||||||||||||||
Triad Manufactured Home loans | $ | 102,424 | $ | 89,011 | $ | 88,563 | $ | 13,413 | $ | 13,861 | ||||||||||
Woodside auto loans | 123,337 | 122,961 | 108,106 | 376 | 15,231 | |||||||||||||||
First Help auto loans | 6,281 | 5,084 | 7,215 | 1,197 | (934 | ) | ||||||||||||||
Other auto loans | 7,350 | 8,182 | 12,379 | (832 | ) | (5,029 | ) | |||||||||||||
Other consumer loans | 11,910 | 13,675 | 5,045 | (1,765 | ) | 6,865 | ||||||||||||||
Total auto and other consumer loans | $ | 251,302 | $ | 238,913 | $ | 221,308 | $ | 12,389 | $ | 29,994 | ||||||||||
Construction and land loans breakout | ||||||||||||||||||||
1-4 Family construction | $ | 87,269 | $ | 77,138 | $ | 70,827 | $ | 10,131 | $ | 16,442 | ||||||||||
Multifamily construction | 51,788 | 76,345 | 83,206 | (24,557 | ) | (31,418 | ) | |||||||||||||
Acquisition-renovation | 7,096 | 19,247 | 31,066 | (12,151 | ) | (23,970 | ) | |||||||||||||
Nonresidential construction | 6,909 | 9,218 | 10,712 | (2,309 | ) | (3,803 | ) | |||||||||||||
Land and development | 8,600 | 11,698 | 12,045 | (3,098 | ) | (3,445 | ) | |||||||||||||
Total construction and land loans | $ | 161,662 | $ | 193,646 | $ | 207,856 | $ | (31,984 | ) | $ | (46,194 | ) | ||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY
ADDITIONAL INFORMATION
(Dollars in thousands) (Unaudited)
Non-GAAP Financial Measures
This press release contains financial measures that are not defined in generally accepted accounting principles ("GAAP"). Non-GAAP measures are presented where management believes the information will help investors understand the Company’s results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of the GAAP and non-GAAP measures are presented below.
Calculations Based on Tangible Common Equity:
2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Total shareholders' equity | $ | 160,336 | $ | 158,282 | $ | 156,599 | $ | 165,154 | $ | 177,776 | ||||||||||
Less: | 1,088 | 1,089 | 1,173 | 1,176 | 1,180 | |||||||||||||||
Disallowed non-mortgage loan servicing rights | 804 | 714 | 814 | 754 | 951 | |||||||||||||||
Total tangible common equity | $ | 158,444 | $ | 156,479 | $ | 154,612 | $ | 163,224 | $ | 175,645 | ||||||||||
Total assets | $ | 2,172,094 | $ | 2,042,070 | $ | 2,091,441 | $ | 2,031,632 | $ | 1,944,282 | ||||||||||
Less: | 1,088 | 1,089 | 1,173 | 1,176 | 1,180 | |||||||||||||||
Disallowed non-mortgage loan servicing rights | 804 | 714 | 814 | 754 | 951 | |||||||||||||||
Total tangible assets | $ | 2,170,202 | $ | 2,040,267 | $ | 2,089,454 | $ | 2,029,702 | $ | 1,942,151 | ||||||||||
Average shareholders' equity | $ | 159,319 | $ | 157,590 | $ | 168,264 | $ | 173,584 | $ | 189,455 | ||||||||||
Less: Average goodwill and other intangible assets | 1,089 | 1,171 | 1,175 | 1,179 | 1,182 | |||||||||||||||
Average disallowed non-mortgage loan servicing rights | 715 | 813 | 755 | 949 | 1,381 | |||||||||||||||
Total average tangible common equity | $ | 157,515 | $ | 155,606 | $ | 166,334 | $ | 171,456 | $ | 186,892 | ||||||||||
Tangible common equity ratio (1) | 7.30 | % | 7.67 | % | 7.40 | % | 8.04 | % | 9.04 | % | ||||||||||
Net income | $ | 3,528 | $ | 6,060 | $ | 4,291 | $ | 2,488 | $ | 2,806 | ||||||||||
Return on tangible common equity (1) | 9.08 | % | 15.45 | % | 10.23 | % | 5.82 | % | 6.09 | % | ||||||||||
Common shares outstanding | 9,674,055 | 9,703,581 | 9,978,041 | 9,950,172 | 10,003,622 | |||||||||||||||
Tangible book value per common share (1) | $ | 16.38 | $ | 16.13 | $ | 15.50 | $ | 16.40 | $ | 17.56 | ||||||||||
GAAP Ratios: | ||||||||||||||||||||
Equity to total assets | 7.38 | % | 7.75 | % | 7.49 | % | 8.13 | % | 9.14 | % | ||||||||||
Return on average equity | 8.98 | % | 15.26 | % | 10.12 | % | 5.75 | % | 6.01 | % | ||||||||||
Book value per common share | $ | 16.57 | $ | 16.31 | $ | 15.69 | $ | 16.60 | $ | 17.77 | ||||||||||
Non-GAAP Financial Measures Footnote
(1 | ) | We believe these non-GAAP metrics provide an important measure with which to analyze and evaluate financial condition and capital strength. In addition, we believe that use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles. |
Source:
2023 GlobeNewswire, Inc., source