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PORT ANGELES, Wash.–(BUSINESS WIRE)–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 quarter and nine months ended
September 30, 2018. The Company reported net income of $1.9 million for
the quarter ended September 30, 2018, or $0.19 per basic and diluted
share, compared to net income of $1.5 million, or $0.15 per basic and
diluted share, for the quarter ended June 30, 2018, and net income of
$1.8 million, or $0.17 per basic and diluted share, for the quarter
ended September 30, 2017. Net income increased $400,000 compared to the
linked quarter mainly due to an increase in interest and fees on loans
receivable coupled with a decrease in the provision for loan losses and
noninterest expenses, partially offset by an increase in interest
expense. Net income increased $153,000 compared to the same quarter one
year prior, mainly due to an increase in net interest income and
noninterest income, partially offset by increases in the provision for
loan losses and noninterest expense.
Net income was $5.0 million, or $0.48 per basic and $0.47 per diluted
share, for the nine months ended September 30, 2018, a decrease of
$77,000 compared to net income of $5.1 million, or $0.47 per basic and
diluted share, for the nine months ended September 30, 2017. While net
income before taxes remained relatively stable, with a lower tax rate in
2018 benefiting net income after taxes, overall earnings improvement was
realized year over year. In 2017, a one-time, non-taxable bank-owned
life insurance benefit of $768,000 contributed to higher noninterest
income of $791,000 when compared to 2018. Interest income, however,
increased $4.3 million while interest expense and provision for loan
losses grew $2.0 million and $402,000, respectively, for the nine months
ended September 30, 2018 compared to the same period in 2017, resulting
in an increase in net interest income after provision for loan losses of
$1.9 million. We continued to grow our portfolio of loans, expand our
geographic footprint, and invest in our personnel and infrastructure,
resulting in higher noninterest expenses in 2018 compared to prior
years, but we believe investing in our business will contribute
positively to sustainable earnings and balance sheet growth.
Larry Hueth, President and CEO, commented, “We experienced solid
improvement in net income on both a linked quarter and year over year
basis with an improving earning asset mix. Net interest income continues
to show improvement in spite of a challenging yield curve environment
and increased competition for deposits. Asset quality remained solid at
this stage of the economic cycle, and our branches continue to increase
in deposit market share, improving their efficiency as a funding source.
Our focus will be to continue shifting the earning asset mix, where
prudent, while managing expenses and capital in order to improve our
efficiency ratio, earnings per share, and return on equity as we strive
to attain a level of performance commensurate with our more seasoned
public company peers.”
Quarter highlights (at or for the quarter ended September 30, 2018)
Net income increased $400,000 compared to the quarter ended June 30,
2018;
Basic and diluted earnings per share increased $0.04 to $0.19 compared
to $0.15 for the quarter ended June 30, 2018;
Investment securities increased $14.2 million, primarily due to the
purchase of securities partially offset by sales, repayment, and
amortization activity;
Loans receivable increased $18.1 million, primarily due to growth in
auto and commercial real estate loans;
Deposits increased $38.3 million mainly due to continued efforts to
expand deposit relationships with competitive pricing and products;
The Company repurchased 126,200 shares of common stock at an average
price of $16.41 per share for a total of $2.1 million during the
quarter under the 2017 Stock Repurchase Plan approved in September
2017.
Balance Sheet Review
During the quarter ended September 30, 2018, total assets increased
$34.5 million to $1.2 billion, primarily due to increases in net loans
receivable and investment securities, which were funded mainly through
deposit growth as noted below. Total assets increased $87.5 million from
$1.2 billion at September 30, 2017, primarily due to growth in net loans
receivable, funded by deposit growth and an increase in borrowings.
Investment securities increased $14.2 million during the quarter to
$311.0 million, or 25.1% of total assets, at September 30, 2018, and
decreased $30.2 million compared to $341.2 million at September 30,
2017. During the most recent quarter, we purchased approximately $25.1
million and sold approximately $2.0 million of investment securities. We
will continue to evaluate investment opportunities that would allow us
to prudently leverage capital and improve earnings while also continuing
to focus on growing our loan portfolio and improving our earning asset
mix over the long term.
U.S. government agency issued mortgage-backed securities (“MBS agency”)
comprised the largest portion of our investment portfolio at 56.8%, and
totaled $176.7 million at September 30, 2018, an increase during the
quarter of $13.6 million from $163.2 million at June 30, 2018. Other
investment securities were $123.3 million at September 30, 2018, an
increase of $3.1 million from $120.2 million at June 30, 2018. Total
investment securities decreased $30.2 million at September 30, 2018,
compared to $341.2 million at September 30, 2017, which included
decreases of $20.1 million in other investment securities and $10.1
million in mortgage-backed securities. The year over year decrease was
the result of sales, prepayment activity, and normal amortization,
partially offset by new investment purchases. The estimated average life
of the total investment securities portfolio was 5.4 years at
September 30, 2018, and 5.3 years at June 30, 2018. The average
repricing term of our investment securities portfolio was approximately
4.0 years at both September 30, 2018 and June 30, 2018, and 3.5 years at
September 30, 2017, based on the interest rate environment at those
times.
Total loans, excluding loans held for sale, increased $17.6 million to
$845.8 million at September 30, 2018, from $828.2 million at June 30,
2018. Other consumer, commercial real estate, and construction loans
increased $14.7 million, $7.2 million, and $2.3 million, respectively,
while multi-family and one- to four-family residential loans decreased
$2.9 million and $2.7 million, respectively. There were $63.1 million in
undisbursed construction loan commitments at September 30, 2018,
compared to $71.3 million at June 30, 2018, a decrease of $8.2 million,
resulting from construction draw activity in excess of new originations
and completed projects converting to permanent financing. We continue to
grow the auto loan portfolio through our indirect lending and specialty
auto loan purchasing programs, adding $18.2 million of newly originated
auto loans during the quarter, which was the main contributor to the
increase in auto and other consumer loans. Compared to September 30,
2017, total loans, excluding loans held for sale, increased $111.6
million attributable to increases in other consumer loans of $46.7
million, commercial real estate loans of $44.6 million, multi-family
loans of $26.2 million, one- to four-family residential loans of $13.1
million, and home equity loans of $3.7 million, partially offset by a
decrease in construction and land loans of $22.8 million.
Loans receivable consisted of the following at the dates indicated:
June 30,
2018
Three
Month
Change
(In thousands)
Real Estate:
$
336,739
$
339,425
$
323,675
(0.8
)%
4.0
%
85,229
88,147
58,989
(3.3
)
44.5
Commercial real estate
239,431
232,266
194,813
3.1
22.9
Construction and land
59,219
56,919
81,985
4.0
(27.8
)
Total real estate loans
720,618
716,757
659,462
0.5
9.3
Consumer:
38,744
39,085
35,059
(0.9
)
10.5
Other consumer
70,003
55,315
23,329
26.6
200.1
Total consumer loans
108,747
94,400
58,388
15.2
86.2
Commercial business
16,432
17,072
16,385
(3.7
)
0.3
Total loans
845,797
828,229
734,235
2.1
15.2
Less:
Net deferred loan fees
(821
)
(151
)
858
(443.7
)
(195.7
)
Premium on purchased loans, net
(2,175
)
(2,241
)
(2,122
)
(2.9
)
2.5
Allowance for loan losses
9,335
9,282
8,608
0.6
8.4
Total loans receivable, net
$
839,458
$
821,339
$
726,891
2.2
%
15.5
%
During the quarter ended September 30, 2018, total liabilities increased
$35.6 million to $1.1 billion, primarily the result of an increase in
deposits of $38.3 million to $931.6 million at September 30, 2018, from
$893.3 million at June 30, 2018, and a decrease in borrowings of $4.7
million to $121.5 million at September 30, 2018, from $126.3 million at
June 30, 2018. Deposits increased as the result of increases in all
categories, including $5.7 million in money market accounts, $4.8
million in certificates of deposit, $16.9 million in savings accounts,
and $10.8 million in transaction accounts. The decrease in borrowings
was due to decreases in short-term FHLB advances during the quarter.
Total liabilities increased $93.5 million over the last year, mainly
attributable to growth in deposits of $80.7 million and an increase in
borrowings of $9.9 million. Deposit increases were primarily the result
of our continuing efforts to expand commercial and consumer deposit
relationships in our new Kitsap and Whatcom County, Washington
locations, as well as within our historic Clallam and Jefferson County,
Washington locations. We continue to rely on borrowings to fund loan
growth, investment securities portfolio activities, and general
operating cash flow ne.
Total shareholders’ equity decreased $1.0 million during the quarter to
$171.9 million at September 30, 2018, mainly the result of a $1.1
million decrease in value of our available-for-sale securities portfolio
resulting in additional unrealized losses and a decrease of $2.1 million
from the repurchase of shares of common stock, partially offset by net
income of $1.9 million.
Net income increased $400,000 to $1.9 million for the quarter ended
September 30, 2018, compared to net income of $1.5 million for the
quarter ended June 30, 2018. The increase during the quarter was mainly
due to increases in interest income of $274,000 and decreases in
noninterest expense of $179,000. Net income increased $153,000 compared
to the quarter ended September 30, 2017, primarily due to a $605,000
increase in net interest income after provision for loan losses coupled
with a decrease in provision for income tax of $138,000, partially
offset by a $278,000 decrease in noninterest income and a $312,000
increase in noninterest expense.
Net interest income after the provision for loan losses increased
$304,000 to $9.1 million for the quarter ended September 30, 2018, from
$8.8 million for the preceding quarter mainly due to an increase in
interest income. Net interest income after the provision for loan losses
increased $605,000 compared to $8.5 million for the quarter ended
September 30, 2017, due to an increase in net interest income of
$802,000, partially offset by a $197,000 increase in the provision for
loan losses. The decrease in the provision for loan losses of $198,000
during the most recent quarter compared to the prior quarter, was
primarily due to an increase in the balance of loans in categories with
historically good credit quality. Total interest income increased
$274,000 to $11.6 million for the quarter ended September 30, 2018,
compared to the previous quarter ended June 30, 2018, and increased $1.5
million compared to the quarter ended September 30, 2017, primarily due
to an increase in the average balance of, and an increase in interest
and fees on, loans receivable.
Total interest expense increased $168,000 to $2.3 million for the
quarter ended September 30, 2018, compared to the quarter ended June 30,
2018, and increased $710,000 compared to the quarter ended September 30,
2017, due to increases in the average balances of, and interest rates
paid on, deposits and FHLB advances. We continue to compete to attract
and retain deposits and utilize short-term FHLB advances to fund our
operations and purchase additional interest-earning assets.
The net interest margin increased three basis points to 3.25% for the
quarter ended September 30, 2018, compared to 3.22% for the prior
quarter ended June 30, 2018, and increased five basis points from 3.20%
for the same period in 2017. The net interest margin was higher during
the quarter ended September 30, 2018, compared to the prior quarters
ended June 30, 2018 and September 30, 2017, mainly due to an increase in
the average balance of loans receivable earning higher yields than other
interest-bearing assets and improving the margin over interest-bearing
liabilities.
Noninterest income increased $15,000 to $1.4 million for the quarter
ended September 30, 2018, compared to the prior quarter ended June 30,
2018. The increase was primarily due to increases in loan and deposit
service fees of $207,000, partially offset by decreases in the net gain
on the sale of investment securities of $71,000, net gain on sale of
loans of $11,000, other income of $64,000, and mortgage servicing fees,
net of amortization of $47,000. Noninterest income decreased $278,000,
compared to $1.7 million for the same quarter in 2017, the result of
decreases in net gain on sale of loans of $238,000, mortgage servicing
fees, net of amortization of $91,000, net gain on sale of investment
securities of $194,000, and cash surrender value of bank-owned life
insurance of $8,000, partially offset by increases in other income of
$44,000, and loan and deposit service fees of $209,000.
Noninterest expense decreased $179,000 to $8.1 million for the quarter
ended September 30, 2018, compared to $8.3 million for the quarter ended
June 30, 2018, primarily due to decreases in professional fees and
advertising of $139,000 and $105,000, respectively, partially offset by
an increase in other expense of $102,000. Noninterest expense increased
$312,000 compared to $7.8 million for the same quarter in 2017,
primarily due to increases in compensation and benefits of $274,000,
occupancy and equipment of $97,000, advertising of $43,000, and data
processing $72,000, partially offset by a decrease in professional fees
of $147,000 as we continue to grow our business and expand our
geographic footprint.
Capital Ratios and Credit Quality
The Company and the Bank continue to maintain capital levels in excess
of the applicable regulatory requirements and the Bank was categorized
as “well-capitalized” at September 30, 2018.
Nonperforming loans increased $411,000 during the quarter ended
September 30, 2018, to $2.5 million at September 30, 2018, from $2.1
million at June 30, 2018, mainly due to an increase in nonperforming
one- to four-family residential loans of $444,000. Nonperforming loans
to total loans was 0.3% at September 30, 2018 and June 30, 2018, and
0.2% at September 30, 2017. The percentage of the allowance for loan
losses to nonperforming loans decreased to 377.5% at September 30, 2018,
from 450.2% at June 30, 2018, and 479.8% at September 30, 2017.
Classified loans decreased $120,000 to $3.7 million at September 30,
2018, from $3.8 million at June 30, 2018, reflecting improved
performance of commercial real estate loans during the quarter.
Nonperforming loans increased $679,000 from $3.3 million at
September 30, 2017, mainly the result of reduced credit quality in
commercial business loans. The allowance for loan losses as a percentage
of total loans was 1.1% at both September 30, 2018 and June 30, 2018.
There was no material change in the allowance for loan losses as a
percentage of total loans during the quarter due to continued overall
strong asset quality and minimal net loan charge-offs. Fluctuations in
the balance of nonperforming assets and other credit quality measures
are expected as we increase the balance of our loan portfolio.
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 state-chartered mutual savings bank
primarily serving communities in Western Washington State with thirteen
banking locations – eight located within Clallam and Jefferson counties,
two 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 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, except share data) (Unaudited)
Three
One
June 30,
Month
Assets
2018
2018
2017
Change
Change
Cash and due from banks
$
14,195
$
14,926
$
12,717
(4.9
)%
11.6
%
Interest-bearing deposits in banks
11,139
7,958
12,292
40.0
(9.4
)
Investment securities available for sale, at fair value
267,105
252,371
290,159
5.8
(7.9
)
Investment securities held to maturity, at amortized cost
43,908
44,423
51,012
(1.2
)
(13.9
)
Loans held for sale
191
1,562
—
(87.8
)
100.0
Loans receivable (net of allowance for loan losses of $9,335, $9,282
and $8,608)
839,458
821,339
726,891
2.2
15.5
Federal Home Loan Bank (FHLB) stock, at cost
6,326
6,521
5,729
(3.0
)
10.4
3,914
3,899
3,498
0.4
11.9
Premises and equipment, net
15,460
14,789
13,213
4.5
17.0
Mortgage servicing rights, net
1,074
1,101
1,112
(2.5
)
(3.4
)
Bank-owned life insurance, net
29,172
29,022
28,570
0.5
2.1
Prepaid expenses and other assets
5,829
5,335
5,106
9.3
14.2
Total assets
$
1,237,771
$
1,203,246
$
1,150,299
2.9
%
7.6
%
Liabilities and Shareholders’ Equity
Deposits
$
931,605
$
893,326
$
850,933
4.3
%
9.5
%
Borrowings
121,526
126,271
111,657
(3.8
)
8.8
360
374
217
(3.7
)
65.9
Accrued expenses and other liabilities
10,529
9,335
7,600
12.8
38.5
Advances from borrowers for taxes and insurance
1,848
993
1,964
86.1
(5.9
)
Total liabilities
1,065,868
1,030,299
972,371
3.5
9.6
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 11,325,618 at September 30, 2018; issued and
outstanding 11,483,494 at June 30, 2018; and issued and outstanding
11,839,707 at September 30, 2017
113
115
118
(1.7
)
(4.2
)
Additional paid-in capital
107,531
108,780
111,175
(1.1
)
(3.3
)
Retained earnings
80,880
79,767
78,725
1.4
2.7
Accumulated other comprehensive loss, net of tax
(5,907
)
(4,836
)
(717
)
(22.1
)
(723.8
)
Unearned employee stock ownership plan (ESOP) shares
(10,714
)
(10,879
)
(11,373
)
1.5
5.8
Total shareholders’ equity
171,903
172,947
177,928
(0.6
)
(3.4
)
Total liabilities and shareholders’ equity
$
1,237,771
$
1,203,246
$
1,150,299
2.9
%
7.6
%
FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data) (Unaudited)
Three
One
June 30,
Month
2018
2018
2017
Change
Change
Interest and fees on loans receivable
$
9,257
$
8,952
$
7,928
3.4
%
16.8
%
Interest on mortgage-backed and related securities
1,196
1,237
1,280
(3.3
)
(6.6
)
Interest on investment securities
952
973
765
(2.2
)
24.4
50
41
34
22.0
47.1
FHLB dividends
100
78
36
28.2
177.8
11,555
11,281
10,043
2.4
15.1
Deposits
1,498
1,125
911
33.2
64.4
Borrowings
792
997
669
(20.6
)
18.4
2,290
2,122
1,580
7.9
44.9
9,265
9,159
8,463
1.2
9.5
PROVISION FOR LOAN LOSSES
197
395
—
(50.1
)
100.0
Net interest income after provision for loan losses
9,068
8,764
8,463
3.5
7.1
NONINTEREST INCOME
Loan and deposit service fees
1,122
915
913
22.6
22.9
Mortgage servicing fees, net of amortization
23
70
114
(67.1
)
(79.8
)
Net gain on sale of loans
139
150
377
(7.3
)
(63.1
)
Net (loss) gain on sale of investment securities
(58
)
13
136
(546.2
)
(142.6
)
Increase in cash surrender value of bank-owned life insurance
150
149
158
0.7
(5.1
)
Other income
44
108
—
(59.3
)
100.0
Total noninterest income
1,420
1,405
1,698
1.1
(16.4
)
NONINTEREST EXPENSE
Compensation and benefits
4,740
4,745
4,466
(0.1
)
6.1
Real estate owned and repossessed assets expense, net
14
19
8
(26.3
)
75.0
Data processing
676
677
604
(0.1
)
11.9
Occupancy and equipment
1,119
1,127
1,022
(0.7
)
9.5
Supplies, postage, and telephone
211
243
211
(13.2
)
—
Regulatory assessments and state taxes
172
155
128
11.0
34.4
Advertising
185
290
142
(36.2
)
30.3
Professional fees
319
458
466
(30.3
)
(31.5
)
FDIC insurance premium
76
79
69
(3.8
)
10.1
Other
607
505
691
20.2
(12.2
)
Total noninterest expense
8,119
8,298
7,807
(2.2
)
4.0
INCOME BEFORE PROVISION FOR INCOME TAXES
2,369
1,871
2,354
26.6
0.6
PROVISION FOR INCOME TAXES
443
345
581
28.4
(23.8
)
NET INCOME
$
1,926
$
1,526
$
1,773
26.2
%
8.6
%
Basic and diluted earnings per share
$
0.19
$
0.15
$
0.17
26.7
%
11.8
%
FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data) (Unaudited)
Nine Months Ended September 30,
Percent
2018
2017
Change
Interest and fees on loans receivable
$
26,792
$
23,290
15.0
%
Interest on mortgage-backed and related securities
3,730
3,863
(3.4
)
Interest on investment securities
2,787
2,054
35.7
136
79
72.2
FHLB dividends
237
100
137.0
33,682
29,386
14.6
Deposits
3,608
2,427
48.7
Borrowings
2,678
1,871
43.1
6,286
4,298
46.3
27,396
25,088
9.2
PROVISION FOR LOAN LOSSES
902
500
80.4
Net interest income after provision for loan losses
26,494
24,588
7.8
NONINTEREST INCOME
Loan and deposit service fees
2,930
2,622
11.7
Mortgage servicing fees, net of amortization
155
227
(31.7
)
Net gain on sale of loans
456
705
(35.3
)
Net gain on sale of investment securities
77
136
(43.4
)
Increase in cash surrender value of bank-owned life insurance
448
495
(9.5
)
Income from death benefit on bank-owned life insurance, net
—
768
(100.0
)
Other income
241
145
66.2
Total noninterest income
4,307
5,098
(15.5
)
NONINTEREST EXPENSE
Compensation and benefits
14,296
13,749
4.0
Real estate owned and repossessed assets (income) expenses, net
41
(28
)
246.4
Data processing
1,981
1,818
9.0
Occupancy and equipment
3,348
3,002
11.5
Supplies, postage, and telephone
685
605
13.2
Regulatory assessments and state taxes
453
398
13.8
Advertising
799
538
48.5
Professional fees
1,099
1,200
(8.4
)
FDIC insurance premium
231
193
19.7
Other
1,759
1,769
(0.6
)
Total noninterest expense
24,692
23,244
6.2
INCOME BEFORE PROVISION FOR INCOME TAXES
6,109
6,442
(5.2
)
PROVISION FOR INCOME TAXES
1,134
1,390
(18.4
)
NET INCOME
$
4,975
$
5,052
(1.5
)%
Basic earnings per share
$
0.48
$
0.47
2.1
%
Diluted earnings per share
0.47
0.47
—
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,
2018
2018
2018
2017
2017
Performance ratios: (1)
Return (loss) on average assets
0.64
%
0.51
%
0.51
%
(0.04
)%
0.63
%
Return (loss) on average equity
4.45
3.51
3.47
(0.26
)
3.96
3.00
3.00
2.96
2.92
3.00
3.25
3.22
3.15
3.11
3.20
Efficiency ratio (3)
76.0
78.6
79.2
84.4
76.8
Average interest-earning assets to average interest-bearing
liabilities
130.6
128.4
129.2
131.8
132.4
Book value per common share
$
15.18
$
15.06
$
14.99
$
15.02
$
15.03
Asset quality ratios:
Nonperforming assets to total assets at end of period (4)
0.2
%
0.2
%
0.2
%
0.1
%
0.2
%
Nonperforming loans to total loans (5)
0.3
0.3
0.3
0.2
0.2
Allowance for loan losses to nonperforming loans (5)
377.5
450.2
413.4
570.7
479.8
Allowance for loan losses to total loans
1.1
1.1
1.1
1.1
1.2
Net charge-offs to average outstanding loans
—
—
—
—
—
Capital ratios (First Federal):
Tier 1 leverage
11.6
%
12.3
%
12.2
%
12.5
%
12.8
%
Common equity Tier 1 capital
17.4
19.4
18.4
18.0
18.8
Tier 1 risk-based
17.4
19.4
18.4
18.0
18.8
Total risk-based
18.6
20.6
19.6
19.1
20.0
_________________________
FIRST NORTHWEST BANCORP AND SUBSIDIARY
Selected Financial Ratios and Other Data
(Unaudited) (continued)
As of or For the Nine Months Ended
2018
2017
Performance ratios: (1)
Return on average assets
0.55
%
0.61
%
Return on average equity
3.81
3.77
2.99
3.05
3.21
3.24
Efficiency ratio (3)
77.9
77.0
Average interest-earning assets to average interest-bearing
liabilities
129.4
132.8
Book value per common share
$
15.18
$
15.03
Asset quality ratios:
Nonperforming assets to total assets at end of period (4)
0.2
%
0.2
%
Nonperforming loans to total loans (5)
0.3
0.2
Allowance for loan losses to nonperforming loans (5)
377.5
479.8
Allowance for loan losses to total loans
1.1
1.2
Net charge-offs to average outstanding loans
—
—
Capital ratios (First Federal):
Tier 1 leverage
11.6
%
12.8
%
Common equity Tier 1 capital
17.4
18.8
Tier 1 risk-based
17.4
18.8
Total risk-based
18.6
20.0
_________________________
