First Financial Northwest (FFNW) Q4 2024 earnings summary

Executive summary

• Net income of $1.2 million ($0.13 per diluted share) for Q4 2024, up from a net loss of $608,000 in Q3 2024 and flat year-over-year.

• Full-year 2024 net income was $1.1 million ($0.12 per diluted share), down from $6.3 million ($0.69 per diluted share) in 2023.

• Q4 improvement driven by a $1.3 million recapture of provision for credit losses, following resolution of two large participation loans.

• Net loans receivable increased $14.0 million in Q4; credit quality remained strong with nonaccrual loans at 0.07% of total loans.

• Awaiting final regulatory approval for sale of the Bank to Global Federal Credit Union.

Financial highlights

• Net loans receivable at $1.14 billion as of Dec 31, 2024, up from $1.13 billion in Q3 but down from $1.18 billion a year ago.

• Book value per share was $17.50 at year-end, compared to $17.39 in Q3 and $17.61 a year ago.

• Deposits decreased $36.0 million sequentially and $62.7 million year-over-year, with declines in all categories except retail CDs.

• FHLB advances rose to $110.0 million in Q4 from $100.0 million in Q3, but down from $125.0 million a year ago.

• Net interest income for Q4 was $8.4 million, nearly flat sequentially but down from $9.3 million a year ago; full-year net interest income was $34.8 million, down from $40.5 million in 2023.

Outlook and guidance

• Management continues to focus on loan portfolio growth and maintaining strong credit quality.

• Preparing for the closing of the sale to Global Federal Credit Union, pending regulatory approval.