Market Overview

First Northwest Bancorp Reports Results of Operations for the Fourth Quarter and Fiscal Year Ended June 30, 2017

Share:

PORT ANGELES, Wash., Aug. 04, 2017 (GLOBE NEWSWIRE) -- First Northwest Bancorp (NASDAQ:FNWB) ("Company"), the holding company for First Federal Savings and Loan Association of Port Angeles ("Bank"), announced its operating results for the fourth quarter and fiscal year ended June 30, 2017. The Company reported net income for the fiscal year ended June 30, 2017 of $5.1 million, or $0.46 earnings per basic and diluted share, compared to net income of $4.0 million, or $0.33 earnings per basic and diluted share, for the fiscal year ended June 30, 2016. The Company had net income of $1.1 million, or $0.10 earnings per basic and diluted share, for the quarter ended June 30, 2017, a decrease of $1.1 million, or 48.5%, compared to net income of $2.2 million, or $0.20 earnings per basic and diluted share, for the prior quarter ended March 31, 2017, which included income from a death benefit on Bank Owned Life Insurance ("BOLI"). The current quarter's net income decreased $39,000, or 3.4%, compared to net income of $1.2 million for the same quarter in 2016.

Larry Hueth, President and Chief Executive Officer of the Company, commented, "We continue to be pleased with our progress as we complete our second full year as a public company. Deposit and loan growth continue in all markets, and we are very pleased with our de novo branch performance in new markets. The continued transition to a community bank balance sheet has resulted in improved net interest income and net interest margin. Asset quality remains satisfactory with nonperforming loans to total loans of 0.3% at June 30, 2017 and March 31, 2017, compared to 0.5% at June 30, 2016, and provisions for loan losses taken during these periods was mainly attributable to loan growth. While I am pleased with the steady progress we have achieved, additional efforts and focus are required to continue to improve earnings and increase shareholder value."

Fourth Quarter highlights (at or for the quarter ended June 30, 2017)

  • Net income decreased $1.1 million, or 48.5%, compared to the quarter ended March 31, 2017, primarily due to a death benefit on BOLI received in the prior quarter;
  • Basic and diluted earnings per share decreased to $0.10 compared to $0.20 for the quarter ended March 31, 2017;
  • Net loans receivable increased $20.6 million, or 2.9%, as all loan categories increased;
  • Deposits increased $16.0 million, or 2.0%, during the quarter to $823.8 million, as we continued to offer competitive products and services in order to increase our depositor base;
  • Net interest income increased $415,000, or 5.1%, to $8.5 million for the quarter, mainly due to an increase in interest and fees on loans receivable;
  • Net interest margin increased to 3.34% for the quarter compared to the prior quarter of 3.18%, due mainly to an increase in the average balance of loans receivable and income related to the early repayment of certain loans and investments;
  • We repurchased an additional 175,700 shares of common stock during the quarter; a total of 1,065,200 shares, or 81.9%, of the 1,300,756 shares authorized have been repurchased under the Company's stock repurchase plan, at an average price of $14.29 per share.

Balance Sheet Review

During the quarter ended June 30, 2017, total assets increased $6.4 million, or 0.6%, to $1.1 billion. Year over year, total assets increased $77.6 million, or 7.7%, from $1.0 billion at June 30, 2016. Investment securities decreased $15.1 million, or 5.1%, during the quarter to $280.5 million at June 30, 2017, primarily due to prepayments of available for sale securities. Investment securities decreased $43.4 million, or 13.4%, as compared to $323.9 million at June 30, 2016, primarily as a result of sales, prepayment and call activity, and normal amortization. BOLI increased $10.1 million to $28.4 million at June 30, 2017 from $18.3 million at June 30, 2016, primarily the result of the purchase of additional policies.

Net loans, excluding loans held for sale, increased $20.6 million during the three months ended June 30, 2017. All loan categories increased, including increases in construction and land loans of $5.2 million, one-to four-family residential loans of $5.1 million, commercial real estate loans of $3.8 million, and other consumer loans of $3.4 million. Other consumer loans increased primarily as a result of auto loans originated as part of our indirect lending program. There were $32.0 million in undisbursed construction loan commitments at June 30, 2017, of which $13.6 million was committed to one- to four-family residential construction; $9.5 million was committed to multi-family construction; $3.5 million was committed to commercial hospitality construction; $4.7 million was committed to commercial speculative construction; and $686,000 was committed to commercial real estate construction. Compared to June 30, 2016, net loans, excluding loans held for sale, increased $106.9 million, or 17.3%, which included increases in commercial real estate loans of $40.9 million, construction and land loans of $21.3 million, one- to four family residential loans of $19.8 million, other consumer loans of $12.0 million, and multi-family loans of $12.0 million.

Loans receivable consisted of the following at the dates indicated:

  June 30, 2017   March 31, 2017   June 30, 2016
                       
  (In thousands)
Real Estate:          
One to four family $ 328,243     $ 323,166     $ 308,471  
Multi-family 58,101     56,932     46,125  
Commercial real estate 202,038     198,262     161,182  
Construction and land 71,630     66,448     50,351  
Total real estate loans 660,012     644,808     566,129  
           
Consumer:          
Home equity 35,869     34,193     33,909  
Other consumer 21,043     17,603     9,023  
Total consumer loans 56,912     51,796     42,932  
           
Commercial business loans 17,073     16,851     16,924  
           
Total loans 733,997     713,455     625,985  
Less:          
Net deferred loan fees 904     1,114     1,182  
Premium on purchased loans, net (2,216 )   (2,218 )   (2,280 )
Allowance for loan losses 8,523     8,328     7,239  
Total loans receivable, net $ 726,786     $ 706,231     $ 619,844  
           

During the quarter ended June 30, 2017, the total investment securities portfolio decreased $15.1 million to $280.5 million. Mortgage-backed securities represented the largest portion of the investment securities portfolio and totaled $207.1 million at June 30, 2017, a decrease during the quarter of $7.8 million, or 3.6%, from $214.9 million at March 31, 2017. Other investment securities, including mostly municipal bonds and other asset-backed securities, were $73.4 million at June 30, 2017, a decrease of $7.3 million, or 9.0%, from $80.6 million at March 31, 2017, primarily the result of prepayment activity partially offset by new purchases. Total investment securities decreased $43.4 million, or 13.4%, at June 30, 2017 compared to $323.9 million at June 30, 2016, which included a $16.8 million decrease in mortgage-backed securities and a $26.6 million decrease in other investment securities. We continue to manage the investment portfolio as a source of liquidity to fund our growth and supplement interest income.

During the quarter ended June 30, 2017, total liabilities increased $7.2 million, or 0.8%, to $910.0 million at June 30, 2017 from $902.8 million at March 31, 2017, mainly a result of an increase in deposits partially offset by a decrease in borrowings. During the quarter, customer deposits increased $16.0 million, or 2.0%, to $823.8 million at June 30, 2017, from $807.7 million at March 31, 2017, as we continue to grow our deposit customer base in new and historic markets. The increase in deposits was the result of an increase of $33.6 million, or 18.9%, in certificates of deposit, $1.4 million, or 0.6%, in transaction accounts, and $590,000, or 0.6%, in savings accounts, partially offset by a decrease of $19.6 million, or 6.8%, in money market accounts.

Total liabilities increased $89.6 million, or 10.9%, over the last year, which was mainly attributable to an increase in deposits of $100.5 million, or 13.9%, compared to $723.3 million at June 30, 2016. Deposit account increases were the result of our continuing efforts to expand commercial and consumer deposit relationships in our most recently opened locations in Kitsap and Whatcom County, Washington, as well as within our historic Clallam and Jefferson County, Washington locations.

Total shareholders' equity decreased $816,000, or 0.5%, to $177.7 million at June 30, 2017, from $178.5 million at March 31, 2017, primarily due to the repurchase of an additional 175,700 shares of common stock during the quarter. Total shareholders' equity decreased $12.0 million, or 6.3%, during the year due to our repurchase of shares of common stock and change in the unrealized market value of available for sale securities, partially offset by increases due to net income and the allocation of shares in our Employee Stock Ownership Plan ("ESOP").

Operating Results

Net interest income after provision for loan losses increased $345,000, or 4.4%, to $8.2 million for the quarter ended June 30, 2017, from $7.9 million for the prior quarter ended March 31, 2017, due to an increase in net interest income of $415,000, partially offset by an increase in the provision for loan losses of $70,000. Net interest income after the provision for loan losses increased $1.1 million, or 15.9%, compared to $7.1 million for the quarter ended June 30, 2016, due to an increase in net interest income of $1.2 million, partially offset by an increase in the provision for loan losses of $52,000. The increase in the provision for loan losses for the quarter ended June 30, 2017, compared to the previous quarter and the same quarter of the prior year, was primarily due to the growth of loans receivable. Total interest income increased $527,000, or 5.6%, during the quarter to $9.9 million for the quarter ended June 30, 2017, as compared to $9.4 million for the quarter ended March 31, 2017, and increased $1.4 million, or 16.3%, as compared to $8.5 million for the quarter ended June 30, 2016, primarily due to increases in the average balance of, and interest earned on, loans receivable.

Interest expense increased $112,000, or 8.6%, to $1.4 million for the quarter ended June 30, 2017, due to the increase in the average balances, and interest paid on, customer deposits as well as our increased utilization of short-term FHLB advances. Total interest expense increased $208,000, or 17.2%, as compared to the quarter ended June 30, 2016, mainly due to an increase in the average balances of, and interest paid on, customer deposits.

The net interest margin increased 16 basis points to 3.34% for the quarter ended June 30, 2017 compared to 3.18% for the prior quarter ended March 31, 2017, and increased 26 basis points from 3.08% for the same period in 2016. Net interest margin increased for the quarter ended June 30, 2017 compared to the prior quarter and the same period in 2016, primarily due to an increase in the average balance of total loans receivable earning higher yields compared to cash and investment alternatives.

Noninterest income decreased $1.0 million, or 45.5%, to $1.2 million during the quarter ended June 30, 2017, compared to the prior quarter ended March 31, 2017, primarily due to income in the prior quarter from a death benefit received from BOLI of $768,000 and a $240,000 decline in the net gain on sale of loans as we sold fewer loans in the most recent quarter. Noninterest income decreased $786,000, or 39.6%, during the quarter ended June 30, 2017, compared to $2.0 million for the same quarter in 2016, primarily due to a gain on the sale of securities of $711,000 recorded in the same quarter last year as we sold investment securities at gains to offset $414,000 in prepayment penalties on the early repayment of FHLB advances.

Noninterest expense increased $441,000, or 5.9%, to $7.9 million for the quarter ended June 30, 2017, compared to $7.5 million for the quarter ended March 31, 2017, primarily due to an increase in compensation and benefits expense of $223,000. Noninterest expense increased $502,000, or 6.8%, for the quarter ended June 30, 2017, compared to $7.4 million for the same quarter in 2016, primarily due to an increase of $856,000 in compensation and benefits. Compensation and benefits continued to increase compared to the previous quarter and the same quarter one year prior as we added staff to manage our operations and growth, rewarded our staff and management for performance through incentive programs and sales commissions, and have implemented retention tools such as our stock awards program.

Capital Ratios and Credit Quality

The Company and the Bank continue to maintain capital levels in excess of applicable regulatory requirements and the Bank was categorized as "well-capitalized" at June 30, 2017. As of June 30, 2017, the Company had Tier 1 Leverage-Based Capital, Tier 1 Risk-Based Capital, Common Equity Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios of 16.5%, 24.4%, 24.4%, and 25.6%, respectively. The Company's Tier 1 Leverage-Based Capital, Tier 1 Risk-Based Capital, Common Equity Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 18.7%, 29.9%, 29.9%, and 31.1% respectively, at June 30, 2016.

Credit quality remains strong with nonperforming loans decreasing $434,000, or 18.5%, during the quarter ended June 30, 2017, to $1.9 million at June 30, 2017 from $2.3 million at March 31, 2017, mainly attributable to a decrease in nonperforming one- to four-family residential loans of $442,000. Nonperforming loans to total gross loans was 0.3% at both June 30, 2017 and March 31, 2017 and was 0.5% at June 30, 2016. Improvements in asset quality during the year are reflected by an increase in the percentage of the allowance for loan losses to nonperforming loans to 445.1% at June 30, 2017 from 354.5% at March 31, 2017, and 222.3% at June 30, 2016. Classified loans decreased $474,000 to $3.3 million at June 30, 2017 from $3.7 million at March 31, 2017, and were $4.6 million at June 30, 2016. Our allowance for loan losses as a percentage of total loans was 1.2% at June 30, 2017, March 31, 2017, and June 30, 2016.

About the Company

First Northwest Bancorp, a Washington corporation, is the bank holding company for First Federal Savings and Loan Association of Port Angeles. First Federal is a Washington-chartered, community-based savings bank, primarily serving Western Washington State, with twelve banking locations, eight located within Clallam and Jefferson counties, one in Kitsap County, two in Whatcom County, and a home lending center in King County.

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 or range of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; 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 Securities and Exchange Commission ("SEC")-which are available on our website at www.ourfirstfed.com and on the SEC's website at www.sec.gov.

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 fiscal 2018 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.

 
FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands) (Unaudited)
 
              Three   One
  June 30,   March 31,   June 30,   Month   Year
ASSETS 2017   2017   2016   Change   Change
                   
Cash and due from banks $ 14,510     $ 11,791     $ 12,841     23.1 %   13.0 %
Interest-bearing deposits in banks 9,782     11,397     9,809     (14.2 )   (0.3 )
Investment securities available for sale, at fair value 228,593     242,732     267,857     (5.8 )   (14.7 )
Investment securities held to maturity, at amortized cost 51,872     52,795     56,038     (1.7 )   (7.4 )
Loans held for sale     638     917     (100.0 )   (100.0 )
Loans receivable (net of allowance for loan losses of $8,523, $8,328, and $7,239) 726,786     706,231     619,844     2.9     17.3  
Federal Home Loan Bank (FHLB) stock, at cost 4,368     4,741     4,403     (7.9 )   (0.8 )
Accrued interest receivable 3,020     3,080     2,802     (1.9 )   7.8  
Premises and equipment, net 13,236     13,525     13,519     (2.1 )   (2.1 )
Mortgage servicing rights, net 986     1,046     998     (5.7 )   (1.2 )
Bank-owned life insurance, net 28,413     28,253     18,282     0.6     55.4  
Real estate owned and repossessed assets 104     6     81     1,633.3     28.4  
Prepaid expenses and other assets 6,006     5,067     2,711     18.5     121.5  
                   
Total assets $ 1,087,676     $ 1,081,302     $ 1,010,102     0.6 %   7.7 %
                   
LIABILITIES AND SHAREHOLDERS' EQUITY                  
                   
Deposits $ 823,760     $ 807,715     $ 723,287     2.0 %   13.9 %
Borrowings 77,427     86,553     80,672     (10.5 )   (4.0 )
Accrued interest payable 208     195     189     6.7     10.1  
Accrued expenses and other liabilities 7,417     6,358     15,173     16.7     (51.1 )
Advances from borrowers for taxes and insurance 1,143     1,944     1,040     (41.2 )   9.9  
                   
Total liabilities 909,955     902,765     820,361     0.8     10.9  
                   
Shareholders' Equity                  
Preferred stock, $0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding             n/a     n/a  
Common stock, $0.01 par value, authorized 75,000,000 shares; issued and outstanding 11,902,146 at June 30, 2017; issued and outstanding 12,501,546 at March 31, 2017; and issued and outstanding 12,676,660 at June 30, 2016 119     121     127     (1.7 )   (6.3 )
Additional paid-in capital 112,058     113,517     122,595     (1.3 )   (8.6 )
Retained earnings 77,515     77,562     77,301     (0.1 )   0.3  
Accumulated other comprehensive (loss) income, net of tax (434 )   (980 )   1,895     55.7     (122.9 )
Unearned employee stock ownership plan (ESOP) shares (11,537 )   (11,683 )   (12,177 )   1.2     5.3  
                   
Total shareholders' equity 177,721     178,537     189,741     (0.5 )   (6.3 )
                   
Total liabilities and shareholders' equity $ 1,087,676     $ 1,081,302     $ 1,010,102     0.6 %   7.7 %
                   


FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)  (Unaudited)
 
  Quarter Ended   Three   One
  June 30,   March 31,   June 30,   Month   Year
  2017   2017   2016   Change   Change
INTEREST INCOME                  
Interest and fees on loans receivable $ 7,883     $ 7,479     $ 6,376     5.4 %   23.6 %
Interest on mortgage-backed and related securities 1,285     1,298     1,314     (1.0 )   (2.2 )
Interest on investment securities 709     580     817     22.2     (13.2 )
Interest-bearing deposits and other 24     21     11     14.3     118.2  
FHLB dividends 34     30     28     13.3     21.4  
Total interest income 9,935     9,408     8,546     5.6     16.3  
                   
INTEREST EXPENSE                  
Deposits 798     718     600     11.1     33.0  
Borrowings 617     585     607     5.5     1.6  
Total interest expense 1,415     1,303     1,207     8.6     17.2  
                   
Net interest income 8,520     8,105     7,339     5.1     16.1  
                   
PROVISION FOR LOAN LOSSES 285     215     233     32.6     22.3  
                   
Net interest income after provision for loan losses 8,235     7,890     7,106     4.4     15.9  
                   
NONINTEREST INCOME                  
Loan and deposit service fees 888     821     915     8.2     (3.0 )
Mortgage servicing fees, net of amortization 44     69     68     (36.2 )   (35.3 )
Net gain on sale of loans 44     284     146     (84.5 )   (69.9 )
Net gain on sale of investment securities         711     n/a     (100.0 )
Increase in cash surrender value of bank-owned life insurance 159     178     55     (10.7 )   189.1  
Income from death benefit on bank-owned life insurance, net     768         (100.0 )   n/a
Other income 64     81     90     (21.0 )   (28.9 )
Total noninterest income 1,199     2,201     1,985     (45.5 )   (39.6 )
                   
NONINTEREST EXPENSE                  
Compensation and benefits 4,753     4,530     3,897     4.9     22.0  
Real estate owned and repossessed assets expenses (income), net 14     (50 )   55     128.0     (74.5 )
Data processing 617     597     710     3.4     (13.1 )
Occupancy and equipment 995     985     872     1.0     14.1  
Supplies, postage, and telephone 196     198     168     (1.0 )   16.7  
Regulatory assessments and state taxes 137     133     108     3.0     26.9  
Advertising 217     179     157     21.2     38.2  
Professional fees 363     371     437     (2.2 )   (16.9 )
FDIC insurance premium 70     54     93     29.6     (24.7 )
FHLB prepayment penalty         414     n/a     (100.0 )
Other 577     501     526     15.2     9.7  
Total noninterest expense 7,939     7,498     7,437     5.9     6.8  
                   
INCOME BEFORE PROVISION FOR INCOME TAXES 1,495     2,593     1,654     (42.3 )   (9.6 )
                   
PROVISION FOR INCOME TAXES 380     429     500     (11.4 )   (24.0 )
                   
NET INCOME $ 1,115     $ 2,164     $ 1,154     (48.5 )%   (3.4 )%
                       
                       
Basic and diluted earnings per share $ 0.10     $ 0.20     $ 0.10     (50.0 )%   %
                   


FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data) (Unaudited)
 
  Years Ended   One
  June 30,   Year
  2017   2016   Change
INTEREST INCOME          
Interest and fees on loans receivable $ 29,274     $ 23,691     23.6 %
Interest on mortgage-backed and related securities 4,779     5,223     (8.5 )
Interest on investment securities 2,555     3,096     (17.5 )
Interest on deposits and other 70     58     20.7  
FHLB dividends 126     104     21.2  
Total interest income 36,804     32,172     14.4  
           
INTEREST EXPENSE          
Deposits 2,859     2,169     31.8  
Borrowings 2,300     2,601     (11.6 )
Total interest expense 5,159     4,770     8.2  
           
Net interest income 31,645     27,402     15.5  
           
PROVISION FOR LOAN LOSSES 1,260     233     440.8  
           
Net interest income after provision for loan losses 30,385     27,169     11.8  
           
NONINTEREST INCOME          
Loan and deposit service fees 3,511     3,570     (1.7 )
Mortgage servicing fees, net of amortization 232     255     (9.0 )
Net gain on sale of loans 757     234     223.5  
Net gain on sale of investment securities     1,567     (100.0 )
Increase in cash surrender value of bank-owned life insurance 701     114     514.9  
Income from death benefit on bank-owned life insurance, net 768         100.0  
Other income 205     437     (53.1 )
Total noninterest income 6,174     6,177      
           
NONINTEREST EXPENSE          
Compensation and benefits 17,245     14,523     18.7  
Real estate owned and repossessed assets expenses (income), net 17     (307 )   105.5  
Data processing 2,665     2,704     (1.4 )
Occupancy and equipment 3,879     3,492     11.1  
Supplies, postage, and telephone 714     668     6.9  
Regulatory assessments and state taxes 504     485     3.9  
Advertising 685     797     (14.1 )
Professional fees 1,415     1,757     (19.5 )
FDIC insurance premium 251     424     (40.8 )
FHLB prepayment penalty     1,193     (100.0 )
Other 2,404     2,161     11.2  
Total noninterest expense 29,779     27,897     6.7  
           
INCOME BEFORE PROVISION FOR INCOME TAXES 6,780     5,449     24.4  
           
PROVISION FOR INCOME TAXES 1,662     1,457     14.1  
           
NET INCOME $ 5,118     $ 3,992     28.2 %
             
             
Basic and diluted earnings per share 0.46     0.33     39.4 %
           


FIRST NORTHWEST BANCORP AND SUBSIDIARY
Selected Financial Ratios and Other Data
(Unaudited)
 
  As of or For the Quarter Ended
  June 30,   March 31,   December 31,   September 30,   June 30,
  2017   2017   2016   2016   2016
Performance ratios: (1)                  
Return on average assets 0.41 %   0.80 %   0.46 %   0.26 %   0.46 %
Return on average equity 2.49     4.85     2.61     1.37     2.42  
Average interest rate spread 3.16     3.01     2.95     2.88     2.90  
Net interest margin (2) 3.34     3.18     3.12     3.06     3.08  
Efficiency ratio (3) 81.7     72.8     76.5     84.8     79.8  
Average interest-earning assets to average interest-bearing liabilities 132.7     133.5     134.0     137.2     136.7  
                             
Asset quality ratios:                            
Nonperforming assets to total assets at end of period (4) 0.2 %   0.2 %   0.2 %   0.3 %   0.3 %
Nonperforming loans to total gross loans (5) 0.3     0.3     0.4     0.4     0.5  
Allowance for loan losses to nonperforming loans (5) 445.1     354.5     322.7     268.1     222.3  
Allowance for loan losses to total loans receivable 1.2     1.2     1.2     1.2     1.2  
Net charge-offs to average outstanding loans                  
                             
Capital ratios:                            
Equity to total assets at end of period 16.3 %   16.5 %   16.9 %   18.1 %   18.8 %
Average equity to average assets 16.6     16.5     17.4     18.7     19.0  
                   
                   


(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)   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.
(5)   Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.


FIRST NORTHWEST BANCORP AND SUBSIDIARY
Selected Financial Ratios and Other Data
(Unaudited) (continued)
 
  As of or For the Year Ended
  June 30,
  2017   2016
Selected Financial Ratios and Other Data:      
Performance ratios:      
Return on average assets 0.48 %   0.41 %
Return on average equity 2.81     2.09  
Average interest rate spread 3.00     2.78  
Net interest margin (1) 3.18     2.98  
Efficiency ratio (2) 78.7     83.1  
Average interest-earning assets to average interest-bearing liabilities 134.3     138.0  
           
Asset quality ratios:          
Nonperforming assets to total assets at end of period (3) 0.2 %   0.5 %
Nonperforming loans to total gross loans (4) 0.3     0.5  
Allowance for loan losses to nonperforming loans (4) 445.2     222.3  
Allowance for loan losses to total loans receivable 1.2     1.2  
Net charge-offs to average outstanding loans      
           
Capital ratios:          
Equity to total assets at end of period 16.3 %   18.8 %
Average equity to average assets 17.3     19.7  
       
       


(1)   Net interest income divided by average interest-earning assets.
(2)   Total noninterest expense as a percentage of net interest income and total other noninterest income.
(3)   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.
(4)   Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.

 

Contact:
Larry Hueth, President and Chief Executive Officer
Regina Wood, EVP and Chief Financial Officer
First Northwest Bancorp
360-457-0461

Primary Logo

View Comments and Join the Discussion!