First Financial Northwest Reports Net Income Growth in Fourth Quarter

First Financial Northwest, Inc. (NASDAQ GS: FFNW) announced their financial results for the fourth quarter of 2024 and the full year ended December 31, 2024. The company reported a net income of $1.2 million, equating to $0.13 per diluted share for the quarter, marking a significant improvement compared to a net loss of $608,000, or $(0.07) per diluted share, for the previous quarter ended September 30, 2024.

For the full year of 2024, the company reported a net income of $1.1 million, or $0.12 per diluted share, in comparison to a net income of $6.3 million, or $0.69 per diluted share, for the year ended December 31, 2023.

A notable factor contributing to the improved performance for the quarter compared to the previous one was a $1.3 million recapture of the provision for credit losses. This positive development was mainly attributed to the repayment of one of two loans and a partial balance repayment on another loan by a borrower, along with a favorable property appraisal.

Joseph W. Kiley III, the President and CEO of First Financial Northwest, stated, “Our net loans receivable saw an increase of $14.0 million during the quarter as our lending teams remain focused on expanding our loan portfolio. Despite the challenging environment, our credit quality remained robust, with nonaccrual loans amounting to only 0.07% of our total loans.”

Kiley further mentioned that the company continues its preparations for the sale of the Bank to Global Federal Credit Union, pending final approval from Global’s primary regulator, the National Credit Union Administration.

Key highlights for the quarter and year ended December 31, 2024, include net loans receivable totaling $1.14 billion, a book value per common share of $17.50, and a strong credit quality. Additionally, the company reported positive ratios in Tier 1 leverage and total capital, with 11.2% and 16.7% respectively, at the end of December 31, 2024.

Deposits saw a decrease to $1.13 billion at the end of December 31, 2024, from $1.17 billion at the end of September 30, 2024, primarily driven by declines in noninterest-bearing demand and money market deposits. Federal Home Loan Bank advances stood at $110.0 million at the end of December 31, 2024.

Furthermore, the company’s net interest income, total interest income, and total interest expense showed variations over the quarters, largely influenced by changes in interest rates and portfolio balances.

First Financial Northwest’s financial standing and performance metrics demonstrate a stable position as they navigate through changing market conditions and work towards the completion of the pending acquisition.

The article is based on information extracted from an 8-K SEC Filing by First Financial Northwest.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read First Financial Northwest’s 8K filing here.

About First Financial Northwest

First Financial Northwest, Inc operates as the bank holding company for First Financial Northwest Bank that provides commercial banking services in Washington. The company offers a range of deposit products, including noninterest-bearing accounts, interest-bearing demand accounts, money market accounts, savings accounts, and certificates of deposit.