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First Northwest Bancorp Earns $2.2 Million, or $0.23 Per Diluted Share, in 4Q19 and a Record $9.0 Million, or $0.91 Per Diluted Share, for the Year

PORT ANGELES, Wash., Jan. 27, 2020 (GLOBE NEWSWIRE) -- First Northwest Bancorp (FNWB) (“Company”), the holding company for First Federal Savings and Loan Association of Port Angeles (“Bank” or "First Federal"), today reported net income of $2.2 million, or $0.23 per diluted share, for the fourth quarter of 2019, compared to $2.5 million, or $0.25 per diluted share, for the preceding quarter and $2.1 million, or $0.21 per diluted share, in 2018.

"We delivered solid financial results for 2019, achieving revenue growth while maintaining a very strong balance sheet,” stated Matthew P. Deines, President and CEO. “Loans grew 4% during the quarter, while total deposits grew 3% during the same period, with 69% of our deposit base consisting of core deposits. We remain focused on building long-term customer relationships, offering a diverse array of banking products and services, and creating value for our customers and shareholders.”

Fourth Quarter highlights (at or for the quarter ended December 31, 2019)

  • Fourth quarter net income totaled $2.2 million, compared to $2.5 million generated in the preceding quarter and up 4.1% compared to $2.1 million in the fourth quarter a year ago;
  • Basic and diluted earnings per share was $0.23 in the fourth quarter, compared to $0.25 for the preceding quarter, and increased from $0.21 for the fourth quarter of 2018;
  • Loans receivable increased 4.4% to $878.4 million at December 31, 2019, compared to $841.1 million at September 30, 2019, and increased 1.7% when compared to $863.9 million a year ago, primarily due to growth in commercial business loans;
  • Deposits increased 3.2% during the quarter and increased 6.5% from one year prior, reaching $1.0 billion at year-end, due to various deposit strategies;
  • Repurchased 105,600 shares of our common stock at an average price of $17.33 per share during the quarter, and 477,837 shares at an average price of $16.36 per share during the year, under our 2017 stock repurchase plan. There were 25,209 remaining shares authorized for repurchase under this plan as of December 31, 2019; and
  • The Board of Directors approved a new stock repurchase plan of up to 535,097 shares, or approximately 5% of shares outstanding, to commence in 2020 upon completion of the 2017 plan.

Balance Sheet Review

Total assets increased $57.0 million, or 4.6%, during the quarter to $1.31 billion at December 31, 2019, compared to $1.25 billion three months earlier, and increased $48.6 million, or 3.9%, compared to $1.26 billion at December 31, 2018. The quarterly increase in total assets is primarily due to growth in net loans receivable and investment securities, and the year over year increase is primarily due to an increase in cash and equivalents and net loans receivable.

Investment securities increased $26.7 million during the quarter to $315.6 million at December 31, 2019, and increased $9.1 million compared to $306.5 million at December 31, 2018. "We continue to focus on growing loan production, reflecting our strategic efforts to increase loans receivable and decrease investment securities as a percentage of earning assets over the long term," said Regina Wood, EVP/Chief Financial Officer.

At December 31, 2019, U.S. government agency issued mortgage-backed securities ("MBS agency") comprised the largest portion of our investment portfolio at 50.8%, and totaled $160.2 million, unchanged from the previous quarter end. Other investment securities were $147.1 million at December 31, 2019, an increase of $27.7 million from $119.4 million three months earlier. Total investment securities increased $9.1 million at December 31, 2019 compared to $306.5 million at December 31, 2018, which included a $16.9 million decrease in mortgage-backed securities and a $26.0 million increase in other investment securities. The year over year increase was the result of new investment purchases, partially offset by sales, prepayment activity, and normal amortization activity during the year. The estimated average life of the total investment securities portfolio was 5.0 years, and the average repricing term was approximately 3.7 years as of December 31, 2019. "We anticipate the investment portfolio will continue to provide additional interest income, as well as a source of liquidity to fund loan growth and a means with which to manage interest rate risk. During the most recent quarter, we marked all held to maturity investments as available for sale in order to provide greater flexibility to manage changes in the investment portfolio," said Wood.

Total loans, excluding loans held for sale, increased $37.7 million to $883.8 million at December 31, 2019 from $846.1 million at September 30, 2019, and increased $14.0 million during the year from $869.7 million a year ago. "During the quarter, we joined the Northpointe Bank Mortgage Participation Program, which provides interim financing to mortgage originators based on the contractual sale agreement of a mortgage loan, adding $22.9 million in commercial business loans to our portfolio," said Terry Anderson, EVP/Chief Credit Officer. "In addition, we continue our efforts to grow the loan portfolio, utilizing a combination of organic originations and prudent wholesale and loan participation opportunities."

Loans receivable consisted of the following at the dates indicated:

  December 31, 2019   September 30, 2019   December 31, 2018   Three Month Change   One Year Change
  (Dollars in thousands)
Real Estate:                  
One-to four-family $ 306,014     $ 302,337     $ 336,178     $ 3,677     $ (30,164 )
Multi-family 96,098     62,173     82,331     33,925     13,767  
Commercial real estate 255,722     254,058     253,235     1,664     2,487  
Construction and land 37,187     64,954     54,102     (27,767 )   (16,915 )
Total real estate loans 695,021     683,522     725,846     11,499     (30,825 )
                   
Consumer:                  
Home equity 35,046     36,898     37,629     (1,852 )   (2,583 )
Auto and other consumer 112,119     111,312     87,357     807     24,762  
Total consumer loans 147,165     148,210     124,986     (1,045 )   22,179  
                   
Commercial business loans 41,571     14,325     18,898     27,246     22,673  
                   
Total loans 883,757     846,057     869,730     37,700     14,027  
Less:                  
Net deferred loan fees 206     117     292     89     (86 )
Premium on purchased loans, net (4,514 )   (4,649 )   (3,947 )   135     (567 )
Allowance for loan losses 9,628     9,443     9,533     185     95  
Total loans receivable, net $ 878,437     $ 841,146     $ 863,852     $ 37,291     $ 14,585  
                   

Total deposits increased 3.2% to $1.0 billion at December 31, 2019, compared to $970.7 million at September 30, 2019 and increased 6.5% when compared to $940.3 million a year ago. Savings accounts increased 17.8% compared to a year ago, mainly due to a focused savings account offering, to $169.0 million at December 31, 2019, and represent 16.9% of total deposits; transaction accounts increased 5.5% compared to a year ago to $276.5 million at December 31, 2019, and represent 27.6% of total deposits; and certificates of deposit increased 17.9% compared to a year ago, mainly due to increased utilization of brokered certificates of deposits, to $308.1 million at year-end, and represent 30.8% of total deposits.

  December 31, 2019   September 30, 2019   December 31, 2018   Three Month Change   One Year Change
  (In thousands)
Savings $ 168,983     $ 173,786     $ 143,412     $ (4,803 )   $ 25,571  
Transaction accounts 276,496     274,660     262,152     1,836     14,344  
Money market accounts 248,086     243,189     273,344     4,897     (25,258 )
Certificates of deposit 308,080     279,065     261,352     29,015     46,728  
Total deposits $ 1,001,645     $ 970,700     $ 940,260     $ 30,945     $ 61,385  

Total shareholders' equity was virtually unchanged at $176.9 million at December 31, 2019, compared to $177.3 million three months earlier, and was $172.3 million a year earlier. Book value per common share was $16.48 at December 31, 2019 and $15.42 at December 31, 2018. The increase in book value per share compared to a year ago was primarily due to the retirement of 477,837 shares, at a cost of $7.8 million, during 2019.

Operating Results

Net interest income before provision for loan losses remained relatively stable at $9.2 million for the fourth quarter 2019, compared to $9.4 million for both the preceding quarter and the fourth quarter a year ago. For the year 2019, net interest income before the provision for loan losses increased 2.9% to $37.9 million, compared to $36.8 million in 2018. Primarily due to loan growth, the Company recorded a $249,000 provision for loan losses during the fourth quarter of 2019. This compares to a recapture of provision for loan losses of $170,000 for the preceding quarter, and a provision for loan losses of $272,000 for the fourth quarter of 2018. For the year, the provision for loan losses was $669,000, compared to $1.2 million in 2018.

Total interest income decreased to $11.8 million for the fourth quarter 2019 compared to $12.3 million for the previous quarter, mainly due to a decrease in interest and fees on loans receivable, and $12.1 million for the fourth quarter a year ago, mainly due to a combination of a decrease in interest on investment securities and a decrease in interest and fees on loans receivable.

Total interest expense decreased to $2.6 million for the fourth quarter 2019 compared to $2.8 million for the preceding quarter, and $2.7 million for the fourth quarter a year ago. "We continue to offer competitive rates to our customers to attract and retain deposits. In addition, we believe the decreased cost to utilize short-term FHLB advances remains a good alternative for managing our balance sheet mix," said Wood.

The net interest margin decreased three basis points to 3.14% for the fourth quarter of 2019 compared to 3.17% for the third quarter of 2019, and decreased five basis points from 3.19% for the fourth quarter in 2018. "The increased competition for deposits in our markets, combined with the three interest rate reductions during the last six months, contributed to our net interest margin compression during the quarter," said Wood. For 2019, net interest margin was 3.20%, which was unchanged compared to 2018.

Noninterest income increased 26.5% to $2.4 million for the fourth quarter 2019 from $1.9 million for the third quarter 2019, and increased 50.3% compared to $1.6 million for the fourth quarter in 2018. The increase during the fourth quarter of 2019 included a $779,000 gain on sale of investment securities. Loan and deposit service fees totaled $994,000 for the fourth quarter 2019, compared to $1.0 million for the preceding quarter and $1.2 million for the fourth quarter a year ago. For the year 2019, noninterest income increased 18.5% to $7.0 million, compared to $5.9 million in 2018.

Noninterest expense totaled $8.6 million for the fourth quarter of 2019, compared to $8.4 million for the preceding quarter and $8.2 million for the fourth quarter a year ago. For the year, noninterest expense increased modestly to $33.1 million, compared to $32.9 million in 2018. The year-over-year increase is attributable to higher compensation and benefits and advertising costs, partly offset by lower professional fees.

Capital Ratios and Credit Quality

Capital levels for both the Company and its operating bank, First Federal, remain in excess of applicable regulatory requirements and the Bank was categorized as "well-capitalized" at December 31, 2019.

Nonperforming loans increased $474,000 to $1.8 million at December 31, 2019, from $1.3 million at September 30, 2019, mainly attributable to an increase in nonperforming auto and other consumer loans of $373,000 and one- to four-family residential loans of $112,000. Nonperforming loans to total gross loans remained low at 0.2% at December 31, 2019, which was unchanged compared to both three months earlier and a year ago. The percentage of the allowance for loan losses to nonperforming loans was solid at 536.1% at December 31, 2019, 714.3% at September 30, 2019, and 553.3% at December 31, 2018, mainly reflecting the change in nonperforming assets over those same periods. Classified loans increased $329,000 to $5.0 million at December 31, 2019 from $4.6 million at September 30, 2019, mainly attributable to auto loans, and was $3.4 million at December 31, 2018. The allowance for loan losses as a percentage of total loans was unchanged at 1.1% at December 31, 2019, September 30, 2019 and December 31, 2018.

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 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 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 2020 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)

                   
  December 31,   September 30,   December 31,   Three Month   One Year
ASSETS 2019   2019   2018   Change   Change
                   
Cash and due from banks $ 13,519     $ 15,659     $ 15,430     (13.7 )%   (12.4 )%
Interest-bearing deposits in banks 35,220     40,822     10,893     (13.7 )   223.3  
Investment securities available for sale, at fair value 315,580     251,196     262,967     25.6     20.0  
Investment securities held to maturity, at amortized cost     37,649     43,503     (100.0 )   (100.0 )
Loans held for sale 503     2,055         (75.5 )   100.0  
Loans receivable (net of allowance for loan losses of $9,628, $9,443, and $9,533) 878,437     841,146     863,852     4.4     1.7  
Federal Home Loan Bank (FHLB) stock, at cost 6,034     4,931     6,927     22.4     (12.9 )
Accrued interest receivable 3,931     3,726     4,048     5.5     (2.9 )
Premises and equipment, net 14,342     14,443     15,255     (0.7 )   (6.0 )
Mortgage servicing rights, net 871     926     1,044     (5.9 )   (16.6 )
Bank-owned life insurance, net 30,027     29,754     29,319     0.9     2.4  
Prepaid expenses and other assets 8,872     8,003     5,520     10.9     60.7  
                   
Total assets $ 1,307,336     $ 1,250,310     $ 1,258,758     4.6 %   3.9 %
                   
LIABILITIES AND SHAREHOLDERS' EQUITY                  
                   
Deposits $ 1,001,645     $ 970,700     $ 940,260     3.2 %   6.5 %
Borrowings 112,930     85,324     136,552     32.4     (17.3 )
Accrued interest payable 373     262     521     42.4     (28.4 )
Accrued expenses and other liabilities 14,392     14,838     8,071     (3.0 )   78.3  
Advances from borrowers for taxes and insurance 1,145     1,876     1,090     (39.0 )   5.0  
                   
Total liabilities 1,130,485     1,073,000     1,086,494     5.4     4.0  
                   
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 10,731,639 at December 31, 2019; issued and outstanding 10,800,932 at September 30, 2019; and issued and outstanding 11,170,018 at December 31, 2018 107     108     112     (0.9 )   (4.5 )
Additional paid-in capital 102,017     102,786     105,825     (0.7 )   (3.6 )
Retained earnings 86,156     85,143     81,607     1.2     5.6  
Accumulated other comprehensive loss, net of tax (1,539 )   (672 )   (4,731 )   (129.0 )   67.5  
Unearned employee stock ownership plan (ESOP) shares (9,890 )   (10,055 )   (10,549 )   1.6     6.2  
                   
Total shareholders' equity 176,851     177,310     172,264     (0.3 )   2.7  
                   
Total liabilities and shareholders' equity $ 1,307,336     $ 1,250,310     $ 1,258,758     4.6 %   3.9 %
                   


FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)  (Unaudited)

  Quarter Ended   Three   One
  December 31,   September 30,   December 31,   Month   Year
  2019   2019   2018   Change   Change
INTEREST INCOME                  
Interest and fees on loans receivable $ 9,505     $ 10,095     $ 9,654     (5.8 )%   (1.5 )%
Interest on mortgage-backed and related securities 1,070     1,087     1,301     (1.6 )   (17.8 )
Interest on investment securities 1,065     921     1,044     15.6     2.0  
Interest-bearing deposits and other 54     65     50     (16.9 )   8.0  
FHLB dividends 64     92     74     (30.4 )   (13.5 )
Total interest income 11,758     12,260     12,123     (4.1 )   (3.0 )
                   
INTEREST EXPENSE                  
Deposits 2,171     2,141     1,742     1.4     24.6  
Borrowings 427     691     985     (38.2 )   (56.6 )
Total interest expense 2,598     2,832     2,727     (8.3 )   (4.7 )
                   
Net interest income 9,160     9,428     9,396     (2.8 )   (2.5 )
                   
PROVISION FOR LOAN LOSSES 249     (170 )   272     246.5     (8.5 )
                   
Net interest income after provision for loan losses 8,911     9,598     9,124     (7.2 )   (2.3 )
                   
NONINTEREST INCOME                  
Loan and deposit service fees 994     1,000     1,237     (0.6 )   (19.6 )
Mortgage servicing fees, net of amortization 33     44     33     (25.0 )    
Net gain on sale of loans 247     655     121     (62.3 )   104.1  
Net gain on sale of investment securities 779             100.0     100.0  
Increase in cash surrender value of bank-owned life insurance 273     147     147     85.7     85.7  
Other income 97     70     74     38.6     31.1  
Total noninterest income 2,423     1,916     1,612     26.5     50.3  
                   
NONINTEREST EXPENSE                  
Compensation and benefits 4,902     4,771     4,650     2.7     5.4  
Data processing 645     680     664     (5.1 )   (2.9 )
Occupancy and equipment 1,233     1,161     1,125     6.2     9.6  
Supplies, postage, and telephone 205     208     205     (1.4 )    
Regulatory assessments and state taxes 210     209     172     0.5     22.1  
Advertising 512     197     203     159.9     152.2  
Professional fees 214     278     311     (23.0 )   (31.2 )
FDIC insurance premium     (72 )   76     100.0     (100.0 )
FHLB prepayment penalty     344         (100.0 )   n/a  
Other 700     648     759     8.0     (7.8 )
Total noninterest expense 8,621     8,424     8,165     2.3     5.6  
                   
INCOME BEFORE PROVISION FOR INCOME TAXES 2,713     3,090     2,571     (12.2 )   5.5  
                   
PROVISION FOR INCOME TAXES 495     580     441     (14.7 )   12.2  
                   
NET INCOME $ 2,218     $ 2,510     $ 2,130     (11.6 )%   4.1 %
                   
Basic and diluted earnings per share $ 0.23     $ 0.25     $ 0.21     (8.0 )%   9.5 %
                   


FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data) (Unaudited)

  Twelve Months Ended   One
  December 31,   Year
  2019   2018   Change
INTEREST INCOME          
Interest and fees on loans receivable $ 40,166     $ 36,446     10.2 %
Interest on mortgage-backed and related securities 4,606     5,031     (8.4 )
Interest on investment securities 3,965     3,831     3.5  
Interest on deposits and other 244     186     31.2  
FHLB dividends 332     311     6.8  
Total interest income 49,313     45,805     7.7  
           
INTEREST EXPENSE          
Deposits 8,304     5,350     55.2  
Borrowings 3,144     3,663     (14.2 )
Total interest expense 11,448     9,013     27.0  
           
Net interest income 37,865     36,792     2.9  
           
PROVISION FOR LOAN LOSSES 669     1,174     (43.0 )
           
Net interest income after provision for loan losses 37,196     35,618     4.4  
           
NONINTEREST INCOME          
Loan and deposit service fees 3,893     4,167     (6.6 )
Mortgage servicing fees, net of amortization 176     188     (6.4 )
Net gain on sale of loans 1,077     577     86.7  
Net gain on sale of investment securities 836     77     985.7  
Increase in cash surrender value of bank-owned life insurance 708     595     19.0  
Other income 322     315     2.2  
Total noninterest income 7,012     5,919     18.5  
           
NONINTEREST EXPENSE          
Compensation and benefits 18,999     18,946     0.3  
Data processing 2,623     2,645     (0.8 )
Occupancy and equipment 4,642     4,473     3.8  
Supplies, postage, and telephone 883     890     (0.8 )
Regulatory assessments and state taxes 783     625     25.3  
Advertising 1,081     1,002     7.9  
Professional fees 1,121     1,410     (20.5 )
FDIC insurance premium 82     307     (73.3 )
FHLB prepayment penalty 344         100.0  
Other 2,559     2,559      
Total noninterest expense 33,117     32,857     0.8  
           
INCOME BEFORE PROVISION FOR INCOME TAXES 11,091     8,680     27.8  
           
PROVISION FOR INCOME TAXES 2,077     1,575     31.9  
           
NET INCOME $ 9,014     $ 7,105     26.9 %
           
           
Basic earnings per share $ 0.92     $ 0.69     33.3 %
Diluted earnings per share 0.91     0.68     33.8  


FIRST NORTHWEST BANCORP AND SUBSIDIARY
Selected Financial Ratios and Other Data
(Unaudited)

  As of or For the Quarter Ended
  December 31,   September 30,   June 30,   March 31,   December 31,
  2019   2019   2019   2019   2018
Performance ratios: (1)                  
Return on average assets 0.71 %   0.81 %   0.65 %   0.70 %   0.68 %
Return on average equity 4.99     5.65     4.77     5.12     4.96  
Average interest rate spread 2.86     2.87     2.81     2.89     2.92  
Net interest margin (2) 3.14     3.17     3.10     3.16     3.19  
Efficiency ratio (3) 74.4     74.3     74.5     71.9     74.2  
Average interest-earning assets to average interest-bearing liabilities 131.8     130.6     128.3     128.5     129.0  
Book value per common share $ 16.48     $ 16.42     $ 16.15     $ 15.78     $ 15.42  
                   
Asset quality ratios:                  
Nonperforming assets to total assets at end of period (4) 0.1 %   0.1 %   0.1 %   0.1 %   0.1 %
Nonperforming loans to total gross loans (5) 0.2     0.2     0.1     0.2     0.2  
Allowance for loan losses to nonperforming loans (5) 536.1     714.3     753.8     607.7     553.3  
Allowance for loan losses to total loans receivable 1.1     1.1     1.1     1.1     1.1  
Net charge-offs to average outstanding loans                  
                   
Capital ratios (First Federal):                  
Tier 1 leverage 12.2 %   12.0 %   11.6 %   11.4 %   11.5 %
Common equity Tier 1 capital 17.6     18.0     17.4     16.9     17.0  
Tier 1 risk-based 17.6     18.0     17.4     16.9     17.0  
Total risk-based 18.7     19.1     18.5     18.0     18.2  
                   
Other Information:                  
Average total assets $ 1,242,780     $ 1,241,014     $ 1,271,085     $ 1,267,444     $ 1,246,868  
Average interest-earning assets 1,167,805     1,167,353     1,198,848     1,193,684     1,177,006  
Average total loans 849,741     867,647     888,757     876,639     858,075  
Average equity 177,759     177,671     174,437     172,446     171,861  
Average deposits 985,788     957,736     943,136     943,567     934,072  
                   
                   


(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 Twelve Months Ended
  December 31,
  2019   2018
Selected Financial Ratios and Other Data:      
Performance ratios:      
Return on average assets 0.72 %   0.58 %
Return on average equity 5.13     4.09  
Average interest rate spread 2.91     2.98  
Net interest margin (1) 3.20     3.20  
Efficiency ratio (2) 73.8     76.9  
Average interest-earning assets to average interest-bearing liabilities 129.8     129.3  
       
Asset quality ratios:      
Nonperforming assets to total assets at end of period (3) 0.1 %   0.1 %
Nonperforming loans to total gross loans (4) 0.2     0.2  
Allowance for loan losses to nonperforming loans (4) 536.2     553.3  
Allowance for loan losses to total loans receivable 1.1     1.1  
Net charge-offs to average outstanding loans 0.1      
       
Other Information:      
Average total assets $ 1,255,581     $ 1,217,344  
Average interest-earning assets 1,181,923     1,148,469  
Average total loans 870,696     826,055  
Average equity 175,578     173,631  
Average deposits 957,557     897,656  
       
       


(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:
Matthew P. Deines, President and Chief Executive Officer
Regina Wood, EVP and Chief Financial Officer
First Northwest Bancorp
360-457-0461