• First Northwest Bancorp Reports Second Quarter 2023 Earnings

    来源: Nasdaq GlobeNewswire / 27 7月 2023 10:10:53   America/New_York

    PORT ANGELES, Wash., July 27, 2023 (GLOBE NEWSWIRE) --

    Matthew P. Deines, President and CEO, comments on financial results:
    "We grew deposits this quarter and are cautiously optimistic that funding costs have begun to stabilize," said Matthew P. Deines, President and CEO of First Northwest Bancorp. "We continue to focus on the blocking and tackling of community banking and expect actions we took in the second quarter will result in lower expenses in future quarters. Loan growth continues to moderate as we focus on liquidity and pricing loans based on the marginal cost of deposits. Credit quality remains strong and continues to serve as a defining characteristic of our credit culture."

    The Board of Directors of First Northwest Bancorp declared a quarterly cash dividend of $0.07 per common share. The dividend will be payable on August 25, 2023, to shareholders of record as of the close of business on August 11, 2023.

    FINANCIAL HIGHLIGHTS 2Q 23  1Q 23  2Q 22  YTD Highlights
    OPERATING RESULTS (in millions)             Deposit growth year-to-date of $88.9 million
    Operating revenue (1) $17.7  $18.6  $19.5  Retail growth $43.1 million, or 3.0%
    Noninterest expense  15.2   14.9   17.0  Brokered growth $45.7 million, or 34.2%
    Pre-provision net interest income  16.0   16.3   17.2    
    Net income  1.8   3.5   2.5  Loan growth year-to-date of $90.6 million,
    PER SHARE DATA              or 6%
    Basic and diluted earnings $0.20  $0.39  $0.27    
    Book value  16.56   16.57   16.60  Deposit insurance coverage update:
    Tangible book value *  16.39   16.38   16.40  Estimated uninsured business and
    BALANCE SHEET (in millions)              consumer deposits totaling $271.5 million,
    Total loans $1,638  $1,579  $1,477   or approximately 16% of total deposits
    Total deposits  1,653   1,594   1,581   42% of uninsured in urban areas
    Total shareholders' equity  160   160   165   58% of uninsured in rural areas
    ASSET QUALITY             Estimated uninsured public fund deposits
    Net charge-off ratio  0.10%  0.25%  -0.03%  to total deposits of 8% (fully collateralized)
    Nonperforming assets to total assets  0.12   0.12   0.06  Estimated insured deposits to total
    Allowance for credit losses on loans              deposits of 76%
    to total loans  1.06   1.10   1.07  Available borrowing capacity to
    Nonperforming loan coverage ratio  677   661   1,269   uninsured deposits of 125%
    SELECTED RATIOS               
    Return on average assets  0.34%  0.70%  0.51% Liquidity:
    Return on average equity  4.41   8.98   5.75   Closely monitored with ample on and off
    Return on average tangible equity *  4.47   9.08   5.82   balance sheet liquidity for operations.
    Net interest margin  3.25   3.46   3.77    
    Efficiency ratio  86.01   79.78   87.15  Asset quality:
    Bank common equity tier 1 (CETI) ratio  13.10   13.34   13.21   Credit metrics remain stable. Past due and
    Bank total risk-based capital ratio  14.08   14.35   14.24   nonperforming balances remain low.

    (1) Net interest income before provision plus noninterest income
    * See reconciliation of Non-GAAP Financial Measures later in this release.

    First Northwest Bancorp (Nasdaq: FNWB) ("First Northwest" or "Company") today reported quarterly net income of $1.8 million for the second quarter of 2023, compared to $3.5 million for the first quarter of 2023, and $2.5 million for the second quarter of 2022. Basic and diluted earnings per share were $0.20 for the second quarter of 2023, compared to $0.39 for the first quarter of 2023, and $0.27 for the second quarter of 2022. In the second quarter of 2023, the Company generated a return on average assets ("ROAA") of 0.34%, a return on average equity ("ROAE") of 4.41%, and a return on average tangible common equity* of 4.47%. Results in the second quarter of 2023 are reflective of the higher interest rate environment and the impact on the deposit mix as customers seek higher yielding alternatives for their balances.

    In June 2023, First Northwest determined that Quin Ventures, Inc. ("Quin Ventures") was no longer a going concern. The Company wrote off the remaining investment in Quin Ventures through retained earnings in accordance with applicable non-controlling interest accounting methods. The noncontrolling interest in Quin Ventures balance was moved to retained earnings, with no change to total shareholders' equity as a result of the transaction.

    Net Interest Income
    Total interest income increased $2.2 million to $25.5 million for the second quarter of 2023, compared to $23.3 million in the previous quarter, and increased $6.5 million from $19.0 million in the second quarter of 2022. Interest income increased in the current quarter due to higher yields on earning assets and increased volume of loans and interest-earning deposits in banks. Interest and fees on loans increased year-over-year, in part, as the Company's banking subsidiary, First Fed Bank ("First Fed" or "Bank"), grew the loan portfolio through our renewed short-term participation in the Northpointe Mortgage Purchase Program ("Northpointe MPP"), draws on new and existing business lines of credit, originations of multi-family real estate loans, and auto and manufactured home loan purchases. Loan yields have increased over the prior year due to higher rates on new originations as well as the repricing of variable rate loans tied to the Prime Rate or other indices.

    Total interest expense was $9.5 million for the second quarter of 2023, compared to $7.0 million in the first quarter of 2023 and $1.7 million in the second quarter a year ago. Current quarter interest expense was higher due to a 42 basis point increase in the cost of deposits to 1.54% at June 30, 2023, from 1.12% at the prior quarter end. The increase over the second quarter of 2022 was the result of a 134 basis point increase in the cost of deposits from 0.20% 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. Reliance on brokered CDs to replace lost consumer balances also contributed to additional deposit costs.

    Net interest income before provision for credit losses for the second quarter of 2023 decreased 2.0% to $16.0 million, compared to $16.3 million for the preceding quarter, and decreased 7.3% from the second quarter one year ago.

    The Company recorded a $300,000 provision for credit losses in the second quarter of 2023, reflecting the growth in the loan portfolio and additional charge-offs from the Splash unsecured consumer loan program. This compares to a recapture of loan loss provision of $500,000 for the preceding quarter due to a decrease in unfunded commitments during the quarter as well as improvements in the U.S. gross domestic product assumption driving anticipated loss rates. A loan loss provision of $500,000 was recorded for the second quarter of 2022, which was estimated using the incurred loss method based on historical loss trends combined with qualitative adjustments.

    The net interest margin decreased to 3.25% for the second quarter of 2023, from 3.46% the prior quarter, and decreased 52 basis points compared to the second quarter of 2022 of 3.77%. Decreases from both the prior quarter and the prior year are due to higher funding costs for both deposits and borrowed funds. While increases in the cost of funding are currently outpacing the growth of the yield on interest-earning assets, the Company has taken measures to combat interest rate compression. The Bank augments organic loan production with higher yielding purchased loans through relationships with loan originators. We have also increased our focus on variable-rate lending and the Bank has entered into a fair value hedging agreement.

    The yield on average earning assets of 5.17% for the second quarter of 2023 increased 22 basis points compared to the first quarter of 2023, and increased 103 basis points from 4.14% for the second quarter of 2022. Higher loan rates at origination and increased yields on variable-rate loans were offset by a slight decline in the recognition of fees related to loan prepayments. 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 2.33% for the second quarter of 2023, compared to 1.81% for the first quarter of 2023, and increased from 0.49% for the second quarter of 2022. Total cost of funds increased to 1.98% for the second quarter of 2023 from 1.53% in the prior quarter and increased from 0.39% for the second quarter of 2022. Current quarter increases were due to higher costs on interest-bearing deposits and advances in addition to increases in average CD and advance 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 25.8%, 22.8% and 12.3% of retail deposits at June 30, 2023, March 31, 2023 and June 30, 2022, respectively. Average interest-bearing deposit balances increased $45.5 million, or 3.5%, to $1.33 billion for the second quarter of 2023 compared to $1.29 billion for the first quarter of 2023 and increased $110.0 million, or 9.0%, compared to $1.22 billion for the second quarter of 2022.

    Selected Yields 2Q 23  1Q 23  4Q 22  3Q 22  2Q 22 
    Loan yield  5.38%  5.16%  5.22%  4.75%  4.48%
    Investment securities yield  4.09   3.93   3.71   3.21   2.96 
    Cost of interest-bearing deposits  1.87   1.37   0.78   0.41   0.26 
    Cost of deposits  1.54   1.12   0.62   0.32   0.20 
    Cost of borrowed funds  4.36   3.92   3.30   2.50   1.96 
    Net interest spread  2.84   3.13   3.72   3.72   3.65 
    Net interest margin  3.25   3.46   3.96   3.88   3.77 

    Noninterest Income
    Noninterest income declined 26.7% to $1.7 million for the second quarter of 2023 from $2.3 million for the first quarter of 2023 primarily due to a decline in the valuation of servicing rights on sold loans of $675,000 related to the impact of loan payoffs that increased the prepayment speed applied to the remaining servicing rights, as well as a current quarter reduction due to the paid-off loans, mainly attributable to one large commercial loan. Noninterest income declined 23.0% from $2.2 million the same quarter one year ago, due to decreases in the servicing rights valuation, gain on sale of mortgage loans and swap fee income. Saleable mortgage loan production continues to be hindered by reduced refinancing activity due to rising market rates on mortgage loans compared to the prior year.

    Noninterest income declined $580,000 to $4.0 million for the six months ended June 30, 2023, compared to $4.6 million for the six months ended June 30, 2022.

    Noninterest Income                    
    $ in thousands 2Q 23  1Q 23  4Q 22  3Q 22  2Q 22 
    Loan and deposit service fees $1,064  $1,141  $1,163   1,302  $1,091 
    Sold loan servicing fees and servicing right mark-to-market  (191)  493   202   206   27 
    Net gain on sale of loans  58   176   55   285   231 
    Net gain on sale of investment securities              (8)
    Increase in cash surrender value of bank-owned life insurance  190   226   230   221   213 
    Income from death benefit on bank-owned life insurance, net        1,489       
    Other income  590   298   229   320   668 
    Total noninterest income $1,711  $2,334  $3,368  $2,334  $2,222 

    Noninterest Expense
    Noninterest expense totaled $15.2 million for the second quarter of 2023, compared to $14.9 million for the preceding quarter and $17.0 million for the second quarter a year ago. Increases in payroll tax, incentive payments, and stockholder communications during the current quarter were partially offset by decreases in advertising. The reduced expenses compared to the second quarter of 2022 reflects a $2.0 million decrease related to Quin Ventures compensation, advertising and customer acquisition costs, and occupancy expenses, as well as decreases in Bank commissions paid and non-recurring compensation expense, partially offset by higher Bank professional fees and FDIC insurance premiums. The Company continues to focus on managing expenses, with a focus on reducing advertising and discretionary spending.

    Noninterest expense decreased 5.4% to $30.1 million for the six months ended June 30, 2023, compared to $31.8 million for the six months ended June 30, 2022. Compensation expense decreased $2.5 million primarily due to lower commissions, payroll taxes, and medical insurance expenses. Quin Ventures expenses included in the current six-month period totaled $320,000 compared to $2.7 million in the six months ended June 30, 2022.

    Noninterest Expense                    
    $ in thousands 2Q 23  1Q 23  4Q 22  3Q 22  2Q 22 
    Compensation and benefits $8,180  $7,837  $8,357  $9,045  $9,735 
    Data processing  2,080   2,038   2,119   1,778   1,870 
    Occupancy and equipment  1,214   1,209   1,300   1,499   1,432 
    Supplies, postage, and telephone  435   355   333   322   408 
    Regulatory assessments and state taxes  424   389   372   365   441 
    Advertising  929   1,041   486   645   1,405 
    Professional fees  884   806   762   695   629 
    FDIC insurance premium  313   257   235   219   211 
    Other expense  758   939   1,179   807   832 
    Total noninterest expense $15,217  $14,871  $15,143  $15,375  $16,963 
                         
    Efficiency ratio  86.01%  79.78%  67.91%  74.86%  87.15%

    Investment Securities
    Investment securities decreased $7.1 million, or 2.2%, to $322.0 million at June 30, 2023, compared to $329.1 million three months earlier, and decreased $31.2 million compared to $353.1 million at June 30, 2022. The market value of the portfolio decreased $4.2 million during the second quarter of 2023, primarily driven by an increase in long-term interest rates. At June 30, 2023, municipal bonds totaled $100.5 million and comprised the largest portion of the investment portfolio at 31.2%. Non-agency issued mortgage-backed securities were the second largest segment, totaling $92.1 million, or 28.6%, of the portfolio at quarter end. The estimated average life of the securities portfolio was approximately 7.8 years, compared to 8.1 years in the prior quarter and 8.2 years in the second quarter of 2022. The effective duration of the portfolio was approximately 5.2 years, compared to 5.1 years in the prior quarter and 5.2 years at the end of the second quarter of 2022.

    Investment Securities                    
    $ in thousands 2Q 23  1Q 23  4Q 22  3Q 22  2Q 22 
    Municipal bonds $100,503  $101,910  $98,050  $96,130  $104,048 
    U.S. Treasury notes  2,364   2,390   2,364   2,355   2,420 
    International agency issued bonds (Agency bonds)  1,717   1,745   1,702   1,683   1,762 
    Corporate issued debt securities (Corporate debt):  53,674   55,117   55,499   56,165   57,977 
    Senior positions  16,934   17,025   16,828   16,571   16,864 
    Subordinated bank notes  36,740   38,092   38,671   39,594   41,113 
    Mortgage-backed securities:                    
    U.S. government agency issued mortgage-backed securities (MBS agency)  71,565   74,946   75,648   78,231   85,796 
    Non-agency issued mortgage-backed securities (MBS non-agency)  92,140   92,978   93,306   94,872   101,141 

    Loans and Unfunded Loan Commitments
    Net loans, excluding loans held for sale, increased $58.8 million, or 3.8%, to $1.62 billion at June 30, 2023, from $1.56 billion at March 31, 2023, and increased $159.3 million, or 10.9%, from $1.46 billion one year ago. One-to-four family loans increased $11.1 million during the current quarter as a result of $3.3 million in new amortizing loan originations and $23.0 million of residential construction loans that converted to permanent amortizing loans, partially offset by sales and payments received. Multi-family loans increased $11.7 million during the current quarter. The increase was the result of new originations totaling $19.1 million and $493,000 of construction loans converting into permanent amortizing loans, partially offset by payoffs. Construction loans decreased $4.6 million during the quarter, with $27.5 million converting into fully amortizing loans, partially offset by draws on new and existing loans. Commercial real estate, automobile, and home equity loans increased $2.9 million, $2.6 million and $4.8 million, respectively, during the current quarter compared to the previous quarter as originations and draws on existing commitments exceeded payoffs and scheduled payments. Commercial business loans increased $30.1 million as a result of our participation in the Northpointe MPP of $23.9 million.

    The Company originated $10.7 million in residential mortgages during the second quarter of 2023 and sold $6.4 million, with an average gross margin on sale of mortgage loans of approximately 2.00%. This production compares to residential mortgage originations of $5.8 million in the preceding quarter with sales of $5.4 million, with an average gross margin of 1.99%. The single-family home inventory increased in the second quarter of 2023 but higher market rates on mortgage loans continued to hinder saleable mortgage loan production. We have expanded our secondary market outlets and changed our portfolio pricing in an effort to improve our overall production mix. New single-family residence construction loan commitments totaled $4.8 million in the second quarter, compared to $4.9 million in the preceding quarter.

    Loans by Collateral and Unfunded Commitments                    
    $ in thousands 2Q 23  1Q 23  4Q 22  3Q 22  2Q 22 
    One-to-four family construction $74,787  $65,770  $63,021  $58,038  $60,848 
    All other construction and land  81,968   95,769   130,588   157,527   152,024 
    One-to-four family first mortgage  428,879   394,595   384,255   374,309   351,813 
    One-to-four family junior liens  11,956   9,140   8,219   7,244   2,701 
    One-to-four family revolving open-end  33,658   30,473   29,909   27,496   25,438 
    Commercial real estate, owner occupied:                    
    Health care  23,157   23,311   23,463   23,909   24,058 
    Office  18,797   22,246   22,583   23,002   24,311 
    Warehouse  15,158   16,782   20,411   18,479   21,144 
    Other  60,054   52,212   47,778   38,282   31,375 
    Commercial real estate, non-owner occupied:                    
    Office  54,926   58,711   59,216   60,655   62,971 
    Retail  51,824   52,175   54,800   53,186   50,818 
    Hospitality  53,416   45,978   46,349   44,359   44,845 
    Other  90,870   93,207   89,047   98,386   96,597 
    Multi-family residential  296,398   284,699   252,765   242,509   220,677 
    Commercial business loans  80,079   80,825   73,963   69,626   69,888 
    Commercial agriculture and fishing loans  7,844   1,829   1,847   938   525 
    State and political subdivision obligations  439   439   439   472   472 
    Consumer automobile loans  137,860   136,540   136,213   134,221   133,364 
    Consumer loans secured by other assets  115,646   114,343   102,333   104,272   102,685 
    Consumer loans unsecured  444   420   352   481   745 
    Total loans $1,638,160  $1,579,464  $1,547,551  $1,537,391  $1,477,299 
                         
    Unfunded loan commitments $168,668  $202,720  $225,836  $231,208  $250,311 

    Deposits
    Total deposits increased $58.9 million, to $1.65 billion at June 30, 2023, compared to $1.59 billion at March 31, 2023, and increased $72.4 million, or 4.6%, compared to $1.58 billion one year ago. Increases in brokered CDs of $45.1 million, consumer CDs of $34.7 million, business savings account balances of $14.1 million, public fund CDs of $7.1 million, business CD balances of $4.2 million, consumer savings account balances of $4.1 million, and business money market account balances of $3.6 million, were offset by decreases in consumer money market account balances of $32.1 million, business demand account balances of $11.0 million, and consumer demand account balances of $10.7 million during the second quarter. We believe decreases in certain categories were driven by customers seeking higher rates and additional diversification over a variety of account types. The current rate environment has contributed to greater competition for deposits with additional rate specials offered to attract new funds.

    On July 24, 2023, the FDIC issued guidance regarding estimated uninsured deposits reporting expectations to clarify that totals should not be reduced for balances collateralized by pledged assets. The Company estimates that 24% of total deposit balances were uninsured at June 30, 2023. Approximately 16% of total deposits were uninsured business and consumer deposits with the remaining 8% consisting of uninsured public fund balances totaling $126.4 million, of which $108.5 million is fully covered through a combination of an FHLB letter of credit and our participation in the Washington Public Deposit Protection Commission program and $17.9 million is fully covered through pledged securities. Consumer deposits make up 60% of total deposits with an average balance of approximately $24,000 per account.

    Deposits                    
    $ in thousands 2Q 23  1Q 23  4Q 22  3Q 22  2Q 22 
    Noninterest-bearing demand deposits $280,475  $292,119  $315,083  $342,808  $336,311 
    Interest-bearing demand deposits  179,029   189,187   193,558   192,504   192,114 
    Money market accounts  374,269   402,760   473,009   519,018   587,747 
    Savings accounts  260,279   242,117   200,920   196,780   195,029 
    Certificates of deposit, retail  379,484   333,510   247,824   224,574   183,823 
    Certificates of deposit, brokered  179,586   134,515   133,861   129,551   85,700 
    Total deposits $1,653,122  $1,594,208  $1,564,255  $1,605,235  $1,580,724 
                         
    Public fund and tribal deposits included in total deposits $130,974  $119,969  $103,662  $113,690  $131,855 
    Total loans to total deposits  99%  99%  99%  96%  93%


    Deposit Mix 2Q 23  1Q 23  4Q 22  3Q 22  2Q 22 
    Noninterest-bearing demand deposits  17.0%  18.3%  20.1%  21.4%  21.3%
    Interest-bearing demand deposits  10.8   11.9   12.4   12.0   12.2 
    Money market accounts  22.6   25.3   30.3   32.2   37.2 
    Savings accounts  15.7   15.2   12.8   12.3   12.3 
    Certificates of deposit, retail  23.0   20.9   15.8   14.0   11.6 
    Certificates of deposit, brokered  10.9   8.4   8.6   8.1   5.4 


    Cost of Deposits for the Quarter Ended 2Q 23  1Q 23  4Q 22  3Q 22  2Q 22 
    Interest-bearing demand deposits  0.45%  0.42%  0.17%  0.03%  0.05%
    Money market accounts  0.99   0.73   0.49   0.33   0.22 
    Savings accounts  1.22   0.70   0.17   0.05   0.05 
    Certificates of deposit, retail  3.25   2.59   1.65   1.05   0.73 
    Certificates of deposit, brokered  3.44   2.99   2.15   1.08   0.57 
    Cost of total deposits  1.54   1.12   0.62   0.32   0.20 

    Asset Quality
    Nonperforming loans were $2.6 million at June 30, 2023, a decrease of $79,000 from March 31, 2023, related to decreased delinquencies in Splash unsecured consumer loans and Triad purchased manufactured home loans, partially offset by a newly delinquent single-family residential loan. The percentage of the allowance for credit losses on loans to nonperforming loans increased to 677% at June 30, 2023, from 661% at March 31, 2023, and decreased from 1269% at June 30, 2022. Classified loans increased $4.5 million to $22.7 million at June 30, 2023, due to the downgrades of a $2.5 million commercial business loan, a $1.3 million commercial real estate loan and $873,000 in additional funds disbursed on a substandard commercial construction loan during the second quarter. The allowance for credit losses on loans as a percentage of total loans was 1.06% at June 30, 2023, decreasing from 1.10% at the prior quarter end and from 1.07% reported one year earlier. The current quarter 4 basis point decrease can be attributed to construction loans converting into amortizing loans which carry lower reserve estimates along with the Northpoint MPP balance of $23.9 million which does not carry a reserve as it is a very low-risk program.

    $ in thousands 2Q 23  1Q 23  4Q 22  3Q 22  2Q 22 
    Allowance for credit losses on loans to total loans  1.06%  1.10%  1.04%  1.06%  1.07%
    Allowance for credit losses on loans to nonperforming loans  677   661   900   463   1269 
    Nonperforming loans to total loans  0.16   0.17   0.12   0.22   0.08 
    Net charge-off ratio (annualized)  0.10   0.25   0.11   0.06   (0.03)
                         
    Total nonperforming loans $2,554  $2,633  $1,790  $3,517  $1,241 
    Reserve for unfunded commitments $1,336  $1,336  $325  $331  $358 

    Capital
    Total shareholders’ equity decreased to $159.6 million at June 30, 2023, compared to $160.3 million three months earlier, due to a decrease in the fair market value of the investment securities portfolio, net of taxes, of $3.0 million, dividends declared of $675,000 and share repurchases totaling $341,000, partially offset by net income of $1.8 million and a $1.1 million increase in the fair market value of derivatives, net of taxes. Bond values continue to be impacted by the higher rate environment.

    Tangible book value per common share* was $16.39 at June 30, 2023, compared to $16.38 at March 31, 2023, and $16.40 at June 30, 2022. Book value per common share was $16.56 at June 30, 2023, compared to $16.57 at March 31, 2023, and $16.60 at June 30, 2022.

    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 June 30, 2023. Common Equity Tier 1 and Total Risk-Based Capital Ratios at June 30, 2023, were 13.1% and 14.1%, respectively.

      2Q 23  1Q 23  4Q 22  3Q 22  2Q 22 
    Equity to total assets  7.38%  7.38%  7.75%  7.49%  8.13%
    Tangible common equity ratio *  7.31   7.30   7.67   7.40   8.04 
    Capital ratios (First Fed Bank):                    
    Tier 1 leverage  10.16   10.41   10.41   10.50   10.41 
    Common equity Tier 1 capital  13.10   13.34   13.40   13.13   13.21 
    Tier 1 risk-based  13.10   13.34   13.40   13.13   13.21 
    Total risk-based  14.08   14.35   14.42   14.16   14.24 

    Share Repurchase Program and Cash Dividend
    First Northwest continued to return capital to our shareholders through cash dividends and share repurchases during the second quarter of 2023. We repurchased 30,176 shares of common stock under the Company's October 2020 stock repurchase plan at an average price of $11.27 per share for a total of $341,000 during the quarter ended June 30, 2023, leaving 227,410 shares remaining under the plan. In addition, the Company paid cash dividends totaling $683,000 in the second quarter of 2023. 


    * 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 the last year.

    In June 2023, 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 Washington, as voted for two years in row by each company’s own employees.

    In May 2023, First Fed was recognized as a Top Corporate Citizen by the Puget Sound Business Journal. The Corporate Citizenship Awards honors local corporate philanthropists and companies making significant contributions in the region. The top 25 small, medium and large-sized companies were recognized in addition to nine other honorees last year. First Fed was ranked #1 in the medium-sized company category in 2023 and was ranked #3 in the same category in 2022.

    In March 2023, First Fed won “Best Bank” in Cascadia Daily News 2023 Readers' Choice. It was the first year that First Fed had participated in this Whatcom County poll.

    First Fed has been rated a 5-star bank by Bauer Financial, a leading independent bank and credit union rating and research firm. This top rating indicates that First Fed is one of the strongest banks in the nation based on capital, loan quality and other detailed performance criteria.

    In October 2022, First Fed was also recognized in the Best of the Peninsula surveys, winning Best Bank for both Clallam and Jefferson counties. The Bank was a finalist for Best Bank on Bainbridge Island and Central Kitsap. Also, First Fed received Best Financial Advisor in Jefferson.

    In September 2022, the First Fed team was honored to bring home the Gold for Best Bank in the Best of the Northwest survey hosted by Bellingham Alive. 

    About the Company

    First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 16 locations in Washington state including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations, and commercial customers. In 2022, First Northwest made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm. Additionally, First Northwest focuses on strategic partnerships to provide modern financial services such as digital payments and marketplace lending. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

    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 Companys 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 SECs 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 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 Companys operations and stock price performance.

    For More Information Contact:
    Matthew P. Deines, President and Chief Executive Officer
    Geri Bullard, EVP and Chief Financial Officer
    IRGroup@ourfirstfed.com
    360-457-0461

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, except share data) (Unaudited)
     
      June 30, 2023  March 31, 2023  June 30, 2022  Three Month Change  One Year Change 
    ASSETS                    
    Cash and due from banks $19,294  $17,844  $19,006   8.1%  1.5%
    Interest-earning deposits in banks  59,008   122,773   68,789   -51.9   -14.2 
    Investment securities available for sale, at fair value  321,963   329,086   353,144   -2.2   -8.8 
    Loans held for sale  2,049      696   100.0   194.4 
    Loans receivable (net of allowance for credit losses on loans $17,297, $17,396, and $15,747)  1,620,863   1,562,068   1,461,552   3.8   10.9 
    Federal Home Loan Bank (FHLB) stock, at cost  12,621   15,602   10,402   -19.1   21.3 
    Accrued interest receivable  7,480   7,205   5,802   3.8   28.9 
    Premises and equipment, net  18,140   18,252   21,291   -0.6   -14.8 
    Servicing rights on sold loans, at fair value  3,825   4,224   3,865   -9.4   -1.0 
    Bank-owned life insurance, net  40,066   39,878   39,783   0.5   0.7 
    Equity and partnership investments  14,569   14,392   11,452   1.2   27.2 
    Goodwill and other intangible assets, net  1,087   1,088   1,176   -0.1   -7.6 
    Deferred tax asset, net  15,031   14,211   9,310   5.8   61.5 
    Prepaid expenses and other assets  26,882   25,471   25,364   5.5   6.0 
    Total assets $2,162,878  $2,172,094  $2,031,632   -0.4%  6.5%
                         
    LIABILITIES AND SHAREHOLDERS' EQUITY                    
    Deposits $1,653,122  $1,594,208  $1,580,724   3.7%  4.6%
    Borrowings  303,397   379,377   249,319   -20.0   21.7 
    Accrued interest payable  1,367   508   461   169.1   196.5 
    Accrued expenses and other liabilities  44,286   35,255   35,040   25.6   26.4 
    Advances from borrowers for taxes and insurance  1,149   2,410   934   -52.3   23.0 
    Total liabilities  2,003,321   2,011,758   1,866,478   -0.4   7.3 
                         
    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 9,633,496 at June 30, 2023; issued and outstanding 9,674,055 at March 31, 2023; and issued and outstanding 9,950,172 at June 30, 2022  96   97   100   -1.0   -4.0 
    Additional paid-in capital  95,360   95,333   96,479   0.0   -1.2 
    Retained earnings  111,750   114,139   107,000   -2.1   4.4 
    Accumulated other comprehensive loss, net of tax  (40,066)  (38,108)  (28,447)  -5.1   -40.8 
    Unearned employee stock ownership plan (ESOP) shares  (7,583)  (7,749)  (8,242)  2.1   8.0 
    Total parent's shareholders' equity  159,557   163,712   166,890   -2.5   -4.4 
    Noncontrolling interest in Quin Ventures, Inc.     (3,376)  (1,736)  100.0   100.0 
    Total shareholders' equity  159,557   160,336   165,154   -0.5   -3.4 
    Total liabilities and shareholders' equity $2,162,878  $2,172,094  $2,031,632   -0.4%  6.5%


    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF INCOME
    (Dollars in thousands, except per share data) (Unaudited)
     
      Quarter Ended         
      June 30, 2023  March 31, 2023  June 30, 2022  Three Month Change  One Year Change 
    INTEREST INCOME                    
    Interest and fees on loans receivable $21,299  $19,504  $16,081   9.2%  32.4%
    Interest on investment securities  3,336   3,182   2,715   4.8   22.9 
    Interest on deposits in banks  617   404   46   52.7   1,241.3 
    FHLB dividends  222   192   119   15.6   86.6 
    Total interest income  25,474   23,282   18,961   9.4   34.3 
    INTEREST EXPENSE                    
    Deposits  6,209   4,353   796   42.6   680.0 
    Borrowings  3,283   2,624   922   25.1   256.1 
    Total interest expense  9,492   6,977   1,718   36.0   452.5 
    Net interest income  15,982   16,305   17,243   -2.0   -7.3 
    Provision for (recapture of) credit losses  300   (500)  500   160.0   -40.0 
    Net interest income after provision for (recapture of) credit losses  15,682   16,805   16,743   -6.7   -6.3 
    NONINTEREST INCOME                    
    Loan and deposit service fees  1,064   1,141   1,091   -6.7   -2.5 
    Sold loan servicing fees and servicing right mark-to-market  (191)  493   27   -138.7   -807.4 
    Net gain on sale of loans  58   176   231   -67.0   -74.9 
    Net (loss) gain on sale of investment securities        (8)  n/a   100.0 
    Increase in cash surrender value of bank-owned life insurance  190   226   213   -15.9   -10.8 
    Other income  590   298   668   98.0   -11.7 
    Total noninterest income  1,711   2,334   2,222   -26.7   -23.0 
    NONINTEREST EXPENSE                    
    Compensation and benefits  8,180   7,837   9,735   4.4   -16.0 
    Data processing  2,080   2,038   1,870   2.1   11.2 
    Occupancy and equipment  1,214   1,209   1,432   0.4   -15.2 
    Supplies, postage, and telephone  435   355   408   22.5   6.6 
    Regulatory assessments and state taxes  424   389   441   9.0   -3.9 
    Advertising  929   1,041   1,405   -10.8   -33.9 
    Professional fees  884   806   629   9.7   40.5 
    FDIC insurance premium  313   257   211   21.8   48.3 
    Other expense  758   939   832   -19.3   -8.9 
    Total noninterest expense  15,217   14,871   16,963   2.3   -10.3 
    Income before provision for income taxes  2,176   4,268   2,002   -49.0   8.7 
    Provision for income taxes  475   825   467   -42.4   1.7 
    Net income  1,701   3,443   1,535   -50.6   10.8 
    Net loss attributable to noncontrolling interest in Quin Ventures, Inc.  75   85   953   -11.8   -92.1 
    Net income attributable to parent $1,776  $3,528  $2,488   -49.7%  -28.6%
                         
    Basic and diluted earnings per common share $0.20  $0.39  $0.27   -48.7%  -25.9%
                         


    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF INCOME
    (Dollars in thousands, except per share data) (Unaudited)
     
      Six Months Ended June 30  Percent 
      2023  2022  Change 
    INTEREST INCOME            
    Interest and fees on loans receivable $40,803  $30,617   33.3%
    Interest on investment securities  6,518   4,990   30.6 
    Interest on deposits in banks  1,021   84   1,115.5 
    FHLB dividends  414   171   142.1 
    Total interest income  48,756   35,862   36.0 
    INTEREST EXPENSE            
    Deposits  10,562   1,513   598.1 
    Borrowings  5,907   1,620   264.6 
    Total interest expense  16,469   3,133   425.7 
    Net interest income  32,287   32,729   -1.4 
    (Recapture of) provision for credit losses  (200)  500   -140.0 
    Net interest income after (recapture of) provision for credit losses  32,487   32,229   0.8 
    NONINTEREST INCOME            
    Loan and deposit service fees  2,205   2,264   -2.6 
    Sold loan servicing fees and servicing right mark-to-market  302   459   -34.2 
    Net gain on sale of loans  234   484   -51.7 
    Net gain on sale of investment securities     118   -100.0 
    Increase in cash surrender value of bank-owned life insurance  416   465   -10.5 
    Other income  888   835   6.3 
    Total noninterest income  4,045   4,625   -12.5 
    NONINTEREST EXPENSE            
    Compensation and benefits  16,017   18,538   -13.6 
    Data processing  4,118   3,642   13.1 
    Occupancy and equipment  2,423   2,599   -6.8 
    Supplies, postage, and telephone  790   721   9.6 
    Regulatory assessments and state taxes  813   802   1.4 
    Advertising  1,970   2,157   -8.7 
    Professional fees  1,690   1,188   42.3 
    FDIC insurance premium  570   434   31.3 
    Other  1,697   1,713   -0.9 
    Total noninterest expense  30,088   31,794   -5.4 
    Income before provision for income taxes  6,444   5,060   27.4 
    Provision for income taxes  1,300   1,021   27.3 
    Net income  5,144   4,039   27.4 
    Net loss attributable to noncontrolling interest in Quin Ventures, Inc.  160   1,255   -87.3 
    Net income attributable to parent $5,304  $5,294   0.2%
                 
    Basic and diluted earnings per common share $0.59  $0.58   1.7%


    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 
      June 30, 2023  March 31, 2023  December 31, 2022  September 30, 2022  June 30, 2022 
    Performance ratios: (1)                    
    Return on average assets  0.34%  0.70%  1.18%  0.85%  0.51%
    Return on average equity  4.41   8.98   15.26   10.12   5.75 
    Average interest rate spread  2.84   3.14   3.72   3.72   3.65 
    Net interest margin (2)  3.25   3.46   3.96   3.88   3.77 
    Efficiency ratio (3)  86.0   79.8   67.9   74.9   87.2 
    Equity to total assets  7.38   7.38   7.75   7.49   8.13 
    Average interest-earning assets to average interest-bearing liabilities  120.7   122.4   124.8   128.6   130.0 
    Book value per common share $16.56  $16.57  $16.31  $15.69  $16.60 
                         
    Tangible performance ratios:                    
    Tangible assets (4) $2,161,235  $2,170,202  $2,040,267  $2,089,454  $2,029,702 
    Tangible common equity (4)  157,914   158,444   156,479   154,612   163,224 
    Tangible common equity ratio (4)  7.31%  7.30%  7.67%  7.40%  8.04%
    Return on tangible common equity (4)  4.47   9.08   15.45   10.23   5.82 
    Tangible book value per common share (4) $16.39  $16.38  $16.13  $15.50  $16.40 
                         
    Asset quality ratios:                    
    Nonperforming assets to total assets at end of period (5)  0.12%  0.12%  0.09%  0.17%  0.06%
    Nonperforming loans to total loans (6)  0.16   0.17   0.12   0.22   0.08 
    Allowance for credit losses on loans to nonperforming loans (6)  677.25   660.69   900.34   462.70   1268.90 
    Allowance for credit losses on loans to total loans  1.06   1.10   1.04   1.06   1.07 
    Annualized net charge-offs (recoveries) to average outstanding loans  0.10   0.25   0.11   0.06   (0.03)
                         
    Capital ratios (First Fed Bank):                    
    Tier 1 leverage  10.2%  10.4%  10.4%  10.5%  10.4%
    Common equity Tier 1 capital  13.1   13.3   13.4   13.1   13.2 
    Tier 1 risk-based  13.1   13.3   13.4   13.1   13.2 
    Total risk-based  14.1   14.4   14.4   14.2   14.2 
                         
    Other Information:                    
    Average total assets $2,118,014  $2,050,210  $2,039,016  $1,996,765  $1,963,665 
    Average total loans  1,605,133   1,552,299   1,554,276   1,500,508   1,455,038 
    Average interest-earning assets  1,975,384   1,909,271   1,895,799   1,859,396   1,836,202 
    Average noninterest-bearing deposits  282,514   294,235   326,450   342,944   344,827 
    Average interest-bearing deposits  1,333,943   1,288,429   1,243,185   1,224,548   1,223,888 
    Average interest-bearing liabilities  1,636,188   1,559,983   1,519,106   1,446,428   1,412,327 
    Average equity  161,387   159,319   157,590   168,264   173,584 
    Average shares -- basic  8,914,355   8,911,294   9,069,493   9,093,821   9,094,894 
    Average shares -- diluted  8,931,386   8,939,601   9,106,453   9,138,123   9,166,131 


    (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.


      As of or For the Six Months Ended June 30, 
      2023  2022 
    Performance ratios: (1)        
    Return on average assets  0.51%  0.55%
    Return on average equity  6.67   5.88 
    Average interest rate spread  2.98   3.54 
    Net interest margin (2)  3.35   3.65 
    Efficiency ratio (3)  82.8   85.1 
    Equity to total assets  7.38   8.13 
    Average interest-earning assets to average interest-bearing liabilities  121.5   131.1 
    Book value per common share $16.56  $16.60 
             
    Tangible performance ratios:        
    Tangible assets (4) $2,161,235  $2,029,702 
    Tangible common equity (4)  157,914   163,224 
    Tangible common equity ratio (4)  7.31%  8.04%
    Return on tangible common equity (4)  6.75   5.96 
    Tangible book value per common share (4) $16.39  $16.40 
             
    Asset quality ratios:        
    Nonperforming assets to total assets at end of period (5)  0.12%  0.06%
    Nonperforming loans to total loans (6)  0.16   0.08 
    Allowance for credit losses on loans to nonperforming loans (6)  677.25   1268.90 
    Allowance for credit losses on loans to total loans  1.06   1.07 
    Annualized net charge-offs (recoveries) to average outstanding loans  0.17   (0.02)
             
    Capital ratios (First Fed Bank):        
    Tier 1 leverage  10.2%  10.4%
    Common equity Tier 1 capital  13.1   13.2 
    Tier 1 risk-based  13.1   13.2 
    Total risk-based  14.1   14.2 
             
    Other Information:        
    Average total assets $2,084,299  $1,931,868 
    Average total loans  1,605,133   1,400,461 
    Average interest-earning assets  1,942,510   1,807,115 
    Average noninterest-bearing deposits  288,343   336,611 
    Average interest-bearing deposits  1,311,311   1,222,612 
    Average interest-bearing liabilities  1,598,295   1,377,962 
    Average equity  160,359   181,475 
    Average shares -- basic  8,912,358   9,082,373 
    Average shares -- diluted  8,932,117   9,167,315 


    (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:
      June 30, 2023  March 31, 2023  June 30, 2022  Three Month Change  One Year Change 
      (In thousands) 
    Commercial business loans breakout                    
    PPP loans $54  $72  $1,751  $(18) $(1,697)
    Northpointe Bank MPP  23,904         23,904   23,904 
    Secured lines of credit  38,355   30,723   12,989   7,632   25,366 
    Unsecured lines of credit  1,231   588   981   643   250 
    SBA loans  9,038   8,805   10,432   233   (1,394)
    Other commercial business loans  57,551   59,798   44,909   (2,247)  12,642 
    Total commercial business loans $130,133  $99,986  $71,062  $30,147  $59,071 
                         
    Auto and other consumer loans breakout                    
    Triad Manufactured Home loans $90,792  $102,424  $79,659  $(11,632) $11,133 
    Woodside auto loans  125,948   123,337   110,499   2,611   15,449 
    First Help auto loans  5,602   6,281   6,724   (679)  (1,122)
    Other auto loans  6,188   7,350   11,097   (1,162)  (4,909)
    Other consumer loans  25,420   11,910   28,764   13,510   (3,344)
    Total auto and other consumer loans $253,950  $251,302  $236,743  $2,648  $17,207 
                         
    Construction and land loans breakout                    
    1-4 Family construction $65,025  $87,269  $74,520  $(22,244) $(9,495)
    Multifamily construction  58,070   51,788   88,922   6,282   (30,852)
    Acquisition-renovation  7,266   7,096   27,103   170   (19,837)
    Nonresidential construction  19,033   6,909   12,651   12,124   6,382 
    Land and development  7,666   8,600   9,866   (934)  (2,200)
    Total construction and land loans $157,060  $161,662  $213,062  $(4,602) $(56,002)


    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:
      June 30, 2023  March 31, 2023  December 31, 2022  September 30, 2022  June 30, 2022 
      (Dollars in thousands, except per share data) 
    Total shareholders' equity $159,557  $160,336  $158,282  $156,599  $165,154 
    Less: Goodwill and other intangible assets  1,087   1,088   1,089   1,173   1,176 
    Disallowed non-mortgage loan servicing rights  556   804   714   814   754 
    Total tangible common equity $157,914  $158,444  $156,479  $154,612  $163,224 
                         
    Total assets $2,162,878  $2,172,094  $2,042,070  $2,091,441  $2,031,632 
    Less: Goodwill and other intangible assets  1,087   1,088   1,089   1,173   1,176 
    Disallowed non-mortgage loan servicing rights  556   804   714   814   754 
    Total tangible assets $2,161,235  $2,170,202  $2,040,267  $2,089,454  $2,029,702 
                         
    Average shareholders' equity $161,387  $159,319  $157,590  $168,264  $173,584 
    Less: Average goodwill and other intangible assets  1,088   1,089   1,171   1,175   1,179 
    Average disallowed non-mortgage loan servicing rights  801   715   813   755   949 
    Total average tangible common equity $159,498  $157,515  $155,606  $166,334  $171,456 
                         
    Tangible common equity ratio (1)  7.31%  7.30%  7.67%  7.40%  8.04%
    Net income $1,776  $3,528  $6,060  $4,291  $2,488 
    Return on tangible common equity (1)  4.47%  9.08%  15.45%  10.23%  5.82%
    Common shares outstanding  9,633,496   9,674,055   9,703,581   9,978,041   9,950,172 
    Tangible book value per common share (1) $16.39  $16.38  $16.13  $15.50  $16.40 
    GAAP Ratios:                    
    Equity to total assets  7.38%  7.38%  7.75%  7.49%  8.13%
    Return on average equity  4.41%  8.98%  15.26%  10.12%  5.75%
    Book value per common share $16.56  $16.57  $16.31  $15.69  $16.60 


      June 30, 2023  June 30, 2022 
      (Dollars in thousands, except per share data) 
    Total shareholders' equity $159,557  $165,154 
    Less: Goodwill and other intangible assets  1,087   1,176 
    Disallowed non-mortgage loan servicing rights  556   754 
    Total tangible common equity $157,914  $163,224 
             
    Total assets $2,162,878  $2,031,632 
    Less: Goodwill and other intangible assets  1,087   1,176 
    Disallowed non-mortgage loan servicing rights  556   754 
    Total tangible assets $2,161,235  $2,029,702 
             
    Average shareholders' equity $160,359  $181,475 
    Less: Average goodwill and other intangible assets  1,088   1,180 
    Average disallowed non-mortgage loan servicing rights  758   1,164 
    Total average tangible common equity $158,513  $179,131 
             
    Tangible common equity ratio (1)  7.31%  8.04%
    Net income $5,304  $5,294 
    Return on tangible common equity (1)  6.75%  5.96%
    Common shares outstanding  9,633,496   9,950,172 
    Tangible book value per common share (1) $16.39  $16.40 
    GAAP Ratios:        
    Equity to total assets  7.38%  8.13%
    Return on average equity  6.67%  5.88%
    Book value per common share $16.56  $16.60 

    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.

    Primary Logo

分享