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First Northwest Bancorp (FNWB)

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Previous Close10.19
Open9.84
Bid0.00 x 1300
Ask0.00 x 3200
Day's Range10.06 - 10.10
52 Week Range8.77 - 18.25
Volume14,276
Avg. Volume19,107
Market Cap105.333M
Beta (5Y Monthly)0.84
PE Ratio (TTM)12.88
EPS (TTM)0.78
Earnings DateOct 26, 2020 - Oct 30, 2020
Forward Dividend & Yield0.20 (1.95%)
Ex-Dividend DateAug 13, 2020
1y Target EstN/A
  • GlobeNewswire

    First Northwest Bancorp Earns $2.0 Million, or $0.21 Per Diluted Share, in Second Quarter 2020

    Fueled by Strong Loan and Deposit Growth;  Declares Quarterly Cash Dividend of $0.05 per SharePORT ANGELES, Wash., July 30, 2020 (GLOBE NEWSWIRE) -- First Northwest Bancorp (Nasdaq: FNWB) (“Company”), the holding company for First Federal Savings and Loan Association of Port Angeles (“Bank” or "First Federal"), today reported net income of $2.0 million, or $0.21 per diluted share, for the second quarter of 2020, reflecting strong loan and deposit growth and an addition to loan loss reserves related to the economic disruption from the COVID-19 pandemic.  These results compare to net income of $873,000, or $0.09 per diluted share, for the first quarter of 2020, and $2.1 million, or $0.21 per diluted share, for the second quarter of 2019. For the first six months of 2020, net income was $2.9 million, or $0.30 per diluted share, from $4.3 million, or $0.43 per diluted share, for the first six months of 2019. The Company also announced today that the Board of Directors declared a regular quarterly cash dividend of $0.05 per common share outstanding, payable on August 28, 2020, to shareholders of record as of the close of business on August 14, 2020. “Our second quarter financial results demonstrate the strength of our franchise, with significant mortgage refinance activity and revenue generation from gains on loan sales. Additionally, Paycheck Protection Program (“PPP”) loans originated during the quarter had a meaningful impact on loan and deposit growth, which also bolstered second quarter results,” stated Matthew P. Deines, President and CEO. “The safety and well-being of our customers and employees remains our primary focus. As one of the first regions to experience COVID-19 infections, we were early adopters of COVID-19 pandemic safety protocols. We resumed lobby activities with modified hours at all branches on May 26, 2020, and we are encouraging the use of drive-up services, ITM/ATM machines, digital banking, and telephone banking, during extended hours.” The State of Washington has slowly been reopening under a Four Phase approach following the lifting of the Stay Home, Stay Healthy order, which expired on May 31, 2020. From March 23 to May 31, 2020, stay at home mandates resulted in the closing of businesses or a substantial reduction in business activity, and at June 30, 2020, there were still some business types that weren’t allowed to fully open yet under current phase guidelines. The sectors most heavily impacted include hospitality; restaurant and food services; and lessors of commercial real estate to hospitality, restaurant, and retail establishments. At June 30, 2020, the Company’s exposure as a percent of the total loan portfolio to these industries was 5.1%, 0.2%, and 4.9%, respectively. “Asset quality at quarter end remained strong, with very few delinquencies in the loan portfolio, as we continued to build our reserves in response to the pandemic and the economic impact of shutdowns on our customers and communities. We recorded a $1.5 million loan loss provision in response to the slowing economic activities which impacted businesses in our market and around the world,” said Deines. “We are actively assisting customers and supporting the businesses in our communities,” added Deines. “Our participation in the Paycheck Protection Program offered through the Small Business Administration (“SBA”) helped service the needs of our customers and the community.  We were able to assist approximately 440 of our customers receive $30.6 million in loans from the program. We also began serving small business in accessing the Federal Reserve’s Main Street Lending Program near the end of the quarter.” The Federal Reserve’s Main Street Lending Program was announced on April 9, 2020. Under the plan, the Federal Reserve agrees to purchase 95% of each qualified loan that banks provide to small and mid-sized businesses.Second Quarter 2020 Highlights (at or for the quarter ended June 30, 2020) * Second quarter net income totaled $2.0 million, compared to $873,000 in the preceding quarter and $2.1 million in the year ago quarter. * Diluted earnings per share was $0.21, up from $0.09 per share in the preceding quarter and unchanged when compared to the second quarter a year ago. * Provision for loan losses was $1.5 million in the second quarter, compared to $1.3 million in the first quarter of 2020 and $255,000 in the second quarter of 2019. * Loans receivable increased 9.7% to $986.4 million at June 30, 2020, compared to $899.2 million at March 31, 2020, and increased 12.9% compared to $874.0 million a year ago, primarily due to growth in real estate and commercial business, including PPP loans. * Deposits increased 10.0% during the quarter and increased 25.4% from one year prior, to $1.17 billion at June 30, 2020, due to successful organic and wholesale deposit-gathering strategies. * The cost of total deposits for the second quarter decreased 13 and 12 basis points, respectively, to 72 basis points from 85 basis points for first quarter 2020 and 84 basis points in the second quarter of 2019. * Gain on sale of mortgage loans total $2.0 million for the second quarter compared to $384,000 in the previous quarter and $88,000 in the second quarter of 2019 reflecting strong quarterly mortgage originations. * During the second quarter, the Company repurchased 130,237 shares of common stock at an average price of $12.81 per share for a total of $1.7 million under the 2019 Stock Repurchase Plan approved in December 2019.Balance Sheet ReviewTotal assets increased $81.9 million, or 5.9%, during the quarter to $1.48 billion at June 30, 2020, compared to $1.40 billion at March 31, 2020, and increased $221.1 million, or 17.6%, compared to $1.26 billion at June 30, 2019. The quarterly increase in total assets is primarily the result of additions to the available-for-sale investment portfolio and new net loan receivables. Investment securities increased $46.8 million during the quarter to $364.3 million at June 30, 2020, and increased $114.2 million compared to $250.1 million at June 30, 2019.  At June 30, 2020, municipal bonds totaled $107.6 million and comprised the largest portion of the investment portfolio at 29.5%.  The estimated average life of the total investment securities portfolio was 6.7 years, and the average repricing term was approximately 4.8 years.Securities consisted of the following at the dates indicated:  June 30, 2020  March 31, 2020  June 30, 2019  Three Month Change  One Year Change                                                                        (In thousands)  Available for Sale at Fair Value                     Municipal bonds $107,610  $52,254  $932  $55,356  $106,678  U.S. government agency issued asset-backed securities (ABS agency)  60,819   42,125   25,436   18,694   35,383  Corporate issued asset-backed securities (ABS corporate)  39,804   34,073   37,210   5,731   2,594  Corporate issued debt securities (Corporate debt)  22,428   9,439   9,482   12,989   12,946  U.S. Small Business Administration securities (SBA)  23,547   25,363   31,975   (1,816)  (8,428) Mortgage-backed securities:                     U.S. government agency issued mortgage-backed securities (MBS agency)  102,647   145,139   135,239   (42,492)  (32,592) Corporate issued mortgage-backed securities (MBS corporate)  7,418   9,127   9,777   (1,709)  (2,359) Total securities available for sale $364,273  $317,520  $250,051  $46,753  $114,222                        Held to Maturity at Amortized Cost                     Municipal bonds $—  $—  $7,080  $—  $(7,080) SBA  —   —   144   —   (144) Mortgage-backed securities:                     MBS Agency  —   —   30,766   —   (30,766) Total securities held to maturity $—  $—  $37,990  $—  $(37,990) “We continue to focus our strategic efforts on growing the loan portfolio, while maintaining investment securities for liquidity and generating interest income," said Geri Bullard, EVP/Chief Financial Officer.  “At June 30, 2020, the market values for our bond portfolio increased significantly compared to March 31, 2020, as the bond market started to stabilize.” Total loans, excluding loans held for sale, increased $87.2 million to $986.4 million at June 30, 2020, from $899.2 million at March 31, 2020, and increased $112.4 million  from $874.0 million a year ago.  “Our participation in the SBA’s Paycheck Protection helped fuel loan production during the quarter, with $30.6 million in new PPP loans as of June 30, 2020," said Terry Anderson, EVP/Chief Credit Officer. "Additionally, we enhanced credit underwriting procedures during the quarter, as we anticipate a more difficult operating environment for the majority of businesses this year.” The Company originated $56.6 million in new residential mortgages during the quarter, and sold $61.1 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 2.46%.  This production compares to residential mortgage originations of $30.7 million in the preceding quarter with sales of $16.0 million.  The continued high volume of mortgage activity will be dependent on the low rate environment.  In the event mortgage rates begin to rise, this activity could slow down. In addition to new originations, the Company also purchased a $28.0 million pool of mortgage loans during the quarter.Loans receivable consisted of the following at the dates indicated:  June 30, 2020  March 31, 2020  June 30, 2019  Three Month Change  One Year Change                                                                        (In thousands)  Real Estate:                     One to four family $325,349  $302,688  $331,748  $22,661  $(6,399) Multi-family  103,279   88,794   68,440   14,485   34,839  Commercial real estate  267,233   260,321   250,250   6,912   16,983  Construction and land  58,153   48,565   63,741   9,588   (5,588) Total real estate loans  754,014   700,368   714,179   53,646   39,835                        Consumer:                     Home equity  33,696   35,260   37,194   (1,564)  (3,498) Auto and other consumer  109,214   114,194   112,583   (4,980)  (3,369) Total consumer loans  142,910   149,454   149,777   (6,544)  (6,867)                       Commercial business  99,477   55,853   15,098   43,624   84,379                        Total loans  996,401   905,675   879,054   90,726   117,347  Less:                     Net deferred loan fees  1,842   433   103   1,409   1,739  Premium on purchased loans, net  (3,901)  (4,742)  (4,738)  841   837  Allowance for loan losses  12,109   10,830   9,731   1,279   2,378  Total loans receivable, net $986,351  $899,154  $873,958  $87,197  $112,393  We continue to monitor the sectors that have been most heavily impacted by the COVID-19 pandemic. The table below presents selected information on loans to these industries as of June 30, 2020.Industry% of Total Loan Portfolio Loan Balance Number of Loans Average Loan- to-Value    (In thousands)     Hospitality5.1% $48,900 15 55.1% Restaurant and food services0.2   2,032 6 82.1  Lessors of commercial real estate to hospitality, restaurant, and retail establishments4.9   46,883 26 58.2  Total deposits increased $106.4 million, or 10.0%, to $1.17 billion at June 30, 2020, compared to $1.06 billion at March 31, 2020 and increased $237.1 million, or 25.4% when compared to $933.3 million a year ago. Savings accounts increased 10.8% compared to a year ago, to $175.7 million at June 30, 2020, and represent 15.0% of total deposits; transaction accounts increased 30.1% compared to a year ago to $339.2 million at June 30, 2020, and represent 29.0% of total deposits; money market accounts increased 31.6% compared to a year ago to $330.3 million, and represent 28.2% of total deposits, and certificates of deposit increased 26.3% compared to a year ago to $325.2 million at quarter-end, and represent 27.8% of total deposits. “Deposit balances increased across the board save for certificates,” said Bullard.  “We continue to strategically use brokered certificates of deposit ("brokered CDs") as an additional funding source to lower overall funding costs. We had $86.3 million in brokered CDs included in our balance of certificates of deposit or 7.4% of total deposits, at June 30, 2020, and $90.4 of brokered CDs or 8.5% of total deposits at March 31, 2020.  The weighted-average cost of brokered CDs was 1.12% for the quarter ending June 30, 2020, comparted to 1.71% for the previous quarter.  We were able to reduce our total cost of funding over the quarter by reducing our retail deposit rates as well as the cost of borrowings.”  Total cost of funds for the three months ending June 30, 2020 was 0.77% compared to 0.97% for the three months ending March 31, 2020. Deposits consisted of the following at the dates indicated:   June 30,   March 31,  2020  June 30,   Three Month Change  One Year Change   2020     2019        (In thousands) Savings $175,749  $165,747  $164,190  $10,002  $11,559 Transaction accounts  339,151   286,283   260,701   52,868   78,450 Money market accounts  330,261   253,198   251,002   77,063   79,259 Certificates of deposit  325,164   358,677   257,372   (33,513)  67,792     Total deposits $1,170,325  $1,063,905  $933,265  $106,420  $237,060   Total shareholders' equity was $176.3 million at June 30, 2020, compared to $167.2 million three months earlier, and $176.4 million a year earlier.  The $9 million quarter-over-quarter increase in equity was due an increase to other comprehensive income based on the improvement in the market value of the investment portfolio.  The year-over-year decrease resulted from dividends paid and the repurchase of shares of common stock. Book value per common share increased to $17.07 at June 30, 2020, compared to $16.02 at March 31, 2020 and $16.15 at June 30, 2019. Operating ResultsTotal interest income increased to $12.4 million for the second quarter of 2020, compared to $12.0 million in the previous quarter and decreased compared to $12.8 million in the second quarter of 2019.  The year over year decrease is mainly due to a combination of a decrease in yield on investment securities of 57 basis points and a decrease in yield average  loans receivable of 34 basis points.  Total interest expense was $2.2 million for the second quarter of 2020, compared to $2.6 million in the first quarter of 2020, and $3.1 million in the second quarter a year ago.  The decrease in interest expense is due to decreases in both the average balance and the cost of borrowings as well as a decrease in the cost of deposits. Net interest income before provision for loan losses increased 7.5% during the quarter to $10.1 million, compared to $9.4 million for the preceding quarter and increased 4.5% compared to $9.7 million in the second quarter a year ago.  For the first six months of 2020, net interest income before the provision for loan losses increased 1.3% to $19.5 million, compared to $19.3 million for the first six months of 2019. Reflecting the COVID-19 pandemic and the subsequent declining business environment,  the Company recorded a $1.5 million provision for loan losses during the second quarter of 2020. This compares to a provision for loan losses of $1.3 million for the preceding quarter, and $255,000 for the second quarter of 2019. Year to date, the provision for loan losses was $2.8 million, compared to $590,000 for the same period one year earlier. The net interest margin decreased one basis point to 3.10% for the second quarter of 2020 compared to 3.11% for the first quarter of 2020 and was unchanged compared to for the second quarter in 2019. “We were able to manage our net interest margin during this historically low rate environment by lowering our cost of funds which offset the decrease in asset yields,” said Bullard.  For the first six months of 2020, the net interest margin was 3.11% compared to 3.22% in the first six months of 2019 due to reduced yields on loans and investments and a higher level of cash in banks. The yield on earning assets decreased 18 basis points to 3.79% for the second quarter of 2020 compared to 3.97% for the first quarter of 2020 and decreased from 4.26% for the second quarter in 2019.  The decrease was due to lower yields on the investment portfolio and average loans as well as higher levels of investments and invested cash as a percentage of interest-earning assets. The yield on the loan portfolio decreased to 4.40% for the second quarter 2020 from 4.52% for the first quarter 2020 and 4.74% for the second quarter in 2019. The cost of interest-bearing liabilities decreased 22 basis points to 0.89% for the second quarter of 2020 compared to 1.11% for the first quarter of 2020 and decreased from 1.33% for the second quarter in 2019.  “We are actively working on changing the mix of our funding profile and managing the rates paid on deposits.  We anticipate our cost of funds will continue to decline as retail deposit rates decrease,” said Bullard. Noninterest income increased 77.3% to $4.1 million for the second quarter 2020 from $2.3 million for the first quarter 2020 and increased 188.8% compared to $1.4 million for the second quarter in 2019. Second quarter of 2020 included a $2.0 million gain on sale of loans compared to a $383,000 gain on sale of loans in the preceding quarter and an $88,000 gain on sale of loans in the second quarter a year ago.  “Mortgage activity, specifically refinance activity, resulted in strong loan sale activity which boosted quarterly non -interest income.  Loan and deposit service fees totaled $765,000 for the second quarter 2020, compared to $881,000 for the preceding quarter and $995,000 for the second quarter a year ago.  Loan and deposit service fees were lower during the second quarter, largely due to accommodations we made to help customers affected by the halt on the economy,” said Bullard.  For the first six months of 2020, noninterest income increased 140.4% to $6.4 million, compared to $2.7 million in the first six months of 2019, reflecting increases in gain on sale of investment securities and gain on sale of loans. Noninterest expense totaled $10.3 million for the second quarter of 2020, compared to $9.4 million for the preceding quarter and $8.3 million for the second quarter a year ago. The quarterly increase is attributable to higher compensation, including salaries, commissions and benefits, increased data processing fees and FDIC insurance premiums, partially offset by a decrease in prepayment fees. For the first six months of 2020, noninterest expense increased to $19.7 million, compared to $16.1 million in the first six months of 2019 due to production related commission payments, additional key hires, increased advertising spend and increases in operational expenses associated with growth.Capital Ratios and Credit QualityCapital 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 June 30, 2020. Common Equity Tier 1 and Total Risk-Based Capital Ratios at June 30, 2020 were 15.1% and 16.4%, respectively. Nonperforming loans increased to $3.4 million at June 30, 2020, from $1.7 million at March 31, 2020. The percentage of the allowance for loan losses to nonperforming loans was 674.2% at June 30, 2020, from 622.4% at March 31, 2020, and 753.8% at June 30, 2019. Classified loans increased $528,000 during the current quarter to $5.1 million at June 30, 2020, reflecting small increases in several categories.  The allowance for loan losses as a percentage of total loans was 1.2% at June 30, 2020, compared to 1.2% at March 31, 2020, and 1.1% at June 30,  2019.About the CompanyFirst 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 StatementsCertain 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 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, except share data) (Unaudited)  June 30, 2020  March 31, 2020  June 30, 2019  Three Month Change  One Year Change  Assets                                           Cash and due from banks $16,346  $15,531  $15,275   5.2%  7.0% Interest-bearing deposits in banks  33,242   91,633   13,547   -63.7   145.4  Investment securities available for sale, at fair value  364,273   317,520   250,051   14.7   45.7  Investment securities held to maturity, at amortized cost  —   —   37,990   n/a   -100.0  Loans held for sale  3,111   4,531   2,516   -31.3   23.6  Loans receivable (net of allowance for loan losses of $12,109, $10,830, and $9,731)  986,351   899,154   873,958   9.7   12.9  Federal Home Loan Bank (FHLB) stock, at cost  6,074   7,581   6,773   -19.9   -10.3  Accrued interest receivable  5,360   4,124   4,094   30.0   30.9  Premises and equipment, net  14,188   14,231   14,719   -0.3   -3.6  Mortgage servicing rights, net  1,098   843   955   30.2   15.0  Bank-owned life insurance, net  37,482   30,355   29,607   23.5   26.6  Prepaid expenses and other assets  11,334   11,436   8,225   -0.9   37.8                        Total assets $1,478,859  $1,396,939  $1,257,710   5.9%  17.6%                       Liabilities and Shareholders' Equity                                           Deposits $1,170,325  $1,063,905  $933,265   10.0%  25.4% Borrowings  112,379   150,021   131,337   -25.1   -14.4  Accrued interest payable  253   194   389   30.4   -35.0  Accrued expenses and other liabilities  18,184   15,225   15,067   19.4   20.7  Advances from borrowers for taxes and insurance  1,403   443   1,251   216.7   12.2                        Total liabilities  1,302,544   1,229,788   1,081,309   5.9   20.5                        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 10,326,226 at June 30, 2020; issued and outstanding 10,432,963 at March 31, 2020; and issued and outstanding 10,925,181 at June 30, 2019   103   104   109    0.1    -5.5  Additional paid-in capital   98,421   99,479   104,064   -1.1   -5.4  Retained earnings  86,633   85,549   83,795   1.3   3.4  Accumulated other comprehensive loss, net of tax  717   (8,256)  (1,347)  108.7   153.2  Unearned employee stock ownership plan (ESOP) shares  (9,559)  (9,725)  (10,220)  1.7   6.5                        Total shareholders' equity  176,315   167,151   176,401   5.5   0.0                        Total liabilities and shareholders' equity $1,478,859  $1,396,939  $1,257,710   5.9%  17.6% FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited)  Quarter Ended            June 30, 2020  March 31, 2020  June 30, 2019  Three Month Change  One Year Change  INTEREST INCOME                     Interest and fees on loans receivable $10,236  $9,836  $10,473   4.1%  -2.3% Interest on mortgage-backed and related securities  740   959   1,192   -22.8   -37.9  Interest on investment securities  1,316   1,069   969   23.1   35.8  Interest on deposits in banks  8   68   58   -88.2   -86.2  FHLB dividends  55   47   88   17.0   -37.5  Total interest income  12,355   11,979   12,780   3.1   -3.3                        INTEREST EXPENSE                     Deposits  2,041   2,138   2,068   -4.5   -1.3  Borrowings  201   434   1,036   -53.7   -80.6  Total interest expense  2,242   2,572   3,104   -12.8   -27.8                        Net interest income  10,113   9,407   9,676   7.5   4.5                        PROVISION FOR LOAN LOSSES  1,500   1,266   255   18.5   488.2                        Net interest income after provision for loan losses  8,613   8,141   9,421   5.8   -8.6                        NONINTEREST INCOME                     Loan and deposit service fees  765   881   995   -13.2   -23.1  Mortgage servicing fees, net of amortization  (172)  15   54   -1,246.7   -418.5  Net gain on sale of loans  2,001   383   88   422.5   2,173.9  Net gain on sale of investment securities  661   605   57   9.3   1,059.6  Increase in cash surrender value of bank-owned life insurance   627   328   145    91.2    332.4  Other income  227   106   84   114.2   170.2  Total noninterest income   4,109   2,318   1,423   77.3   188.8                        NONINTEREST EXPENSE                     Compensation and benefits  5,966   5,361   4,753   11.3   25.5  Data processing  769   690   667   11.4   15.3  Occupancy and equipment  1,345   1,351   1,140   -0.4   18.0  Supplies, postage, and telephone  284   211   242   34.6   17.4  Regulatory assessments and state taxes  223   174   195   28.2   14.4  Advertising  377   272   229   38.6   64.6  Professional fees  354   400   331   -11.5   6.9  FDIC insurance premium  70   —   77   1.0   -9.1  FHLB prepayment penalty  —   210   —   -100.0   n/a  Other  894   713   638   25.4   40.1  Total noninterest expense  10,282   9,382   8,272   9.6   24.3                        INCOME BEFORE PROVISION FOR INCOME TAXES   2,440   1,077   2,572   126.6   -5.1                        PROVISION FOR INCOME TAXES  464   204   493   127.5   -5.9                        NET INCOME $ 1,976  $873  $2,079    126.3%   -5.0%                       Basic and diluted earnings per share $0.21  $0.09  $0.21   133.3%  0.0% FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited)  Six Months Ended June 30,  Percent    2020  2019  Change  INTEREST INCOME             Interest and fees on loans receivable $20,072  $20,565   -2.4% Interest on mortgage-backed and related securities  1,699   2,449   -30.6  Interest on investment securities  2,385   1,979   20.5  Interest on deposits in banks  76   125   -39.2  FHLB dividends  102   176   -42.0  Total interest income  24,334   25,294   -3.8                INTEREST EXPENSE             Deposits  4,179   3,992   4.7  Borrowings  635   2,026   -68.7  Total interest expense  4,814   6,018   -20.0                Net interest income  19,520   19,276   1.3                PROVISION FOR LOAN LOSSES  2,766   590   368.8                Net interest income after provision for loan losses  16,754   18,686   -10.3                NONINTEREST INCOME             Loan and deposit service fees  1,646   1,900   -13.4  Mortgage servicing fees, net of amortization  (157)  99   -258.6  Net gain on sale of loans  2,384   175   1,262.3  Net gain on sale of investment securities  1,266   57   2,121.1  Increase in cash surrender value of bank-owned life insurance  955   288    231.6  Other income  333   155   114.8  Total noninterest income   6,427   2,674   140.4                NONINTEREST EXPENSE             Compensation and benefits  11,327   9,326   21.5  Data processing  1,459   1,298   12.4  Occupancy and equipment  2,696   2,248   19.9  Supplies, postage, and telephone  495   470   5.3  Regulatory assessments and state taxes  397   364   9.1  Advertising  649   372   74.5  Professional fees  754   629   19.9  FDIC insurance premium  70   154   -54.5  FHLB prepayment penalty  210   —   n/a  Other  1,607   1,211   32.7  Total noninterest expense  19,664   16,072   22.3                INCOME BEFORE PROVISION FOR INCOME TAXES   3,517   5,288   -33.5                PROVISION FOR INCOME TAXES  668   1,002   -33.3                NET INCOME $ 2,849  $4,286   -33.5%               Basic and diluted earnings per share $0.30  $0.43   -30.2%  FIRST NORTHWEST BANCORP AND SUBSIDIARY Selected Financial Ratios and Other Data (Unaudited)  As of or For the Quarter Ended    June 30, 2020  March 31, 2020  December 31, 2019  September 30, 2019  June 30, 2019  Performance ratios: (1)                     Return on average assets  0.56%  0.27%  0.71%  0.81%  0.65% Return on average equity  4.60   1.94   4.99   5.65   4.77  Average interest rate spread  2.90   2.86   2.86   2.87   2.81  Net interest margin (2)  3.10   3.11   3.14   3.17   3.10  Efficiency ratio (3)  72.3   80.0   74.4   74.3   74.5  Average interest-earning assets to average interest-bearing liabilities  129.5   130.1   131.8   130.6   128.3  Book value per common share $17.07  $16.02  $16.48  $16.42  $16.15                        Asset quality ratios:                     Nonperforming assets to total assets at end of period (4)  0.2%  0.2%  0.2%  0.1%  0.1% Nonperforming loans to total loans (5)  0.4   0.2   0.2   0.2   0.2  Allowance for loan losses to nonperforming loans (5)  674.2   622.4   536.1   714.3   753.8  Allowance for loan losses to total loans  1.2   1.2   1.1   1.1   1.1  Net charge-offs to average outstanding loans  —   —   —   —   —                        Capital ratios (First Federal):                     Tier 1 leverage  10.9%  11.8%  12.2%  12.0%  11.6% Common equity Tier 1 capital  15.1   16.8   17.5   18.0   17.4  Tier 1 risk-based  15.1   16.8   17.5   18.0   17.4  Total risk-based  16.4   18.1   18.7   19.1   18.5                        Other Information:                     Average total assets $1,401,500  $1,287,529  $1,242,780  $1,241,014  $1,271,085  Average interest-earning assets  1,305,437   1,208,314   1,167,805   1,167,353   1,198,848  Average total loans  938,646   876,135   849,741   867,647   888,757  Average equity  172,009   179,614   177,759   177,671   174,437  Average deposits  1,133,665   1,008,410   985,788   957,736   943,136  (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 Six Months Ended June 30,    2020  2019  Performance ratios: (1)         Return on average assets  0.42%  0.68% Return on average equity  3.24   4.94  Average interest rate spread  2.88   2.94  Net interest margin (2)  3.11   3.22  Efficiency ratio (3)  75.8   73.2  Average interest-earning assets to average interest-bearing liabilities  129.8   128.4  Book value per common share $17.07  $16.15            Asset quality ratios:         Nonperforming assets to total assets at end of period (4)  0.2 %  0.1% Nonperforming loans to total loans (5)  0.4   0.1  Allowance for loan losses to nonperforming loans (5)  674.2   753.8  Allowance for loan losses to total loans  1.2   1.1  Net charge-offs to average outstanding loans  —   —            Capital ratios (First Federal):         Tier 1 leverage  10.9%  11.6% Common equity Tier 1 capital  15.1   17.4  Tier 1 risk-based  15.1   17.4  Total risk-based  16.4   18.5            Other Information:         Average total assets $1,344,666  $1,269,264  Average interest-earning assets  1,256,978   1,196,265  Average total loans  907,465   882,698  Average equity  175,811   173,442  Average deposits  1,071,010   943,353  (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.

  • GlobeNewswire

    First Northwest Bancorp Appoints Sherilyn G. Anderson to its Board of Directors

    Ms. Anderson will be replacing David Flodstrom, who announced his retirement from both Boards effective September 22, 2020. “We are pleased to welcome Sherilyn to our Boards of Directors,” said Matthew P. Deines, President and CEO.

  • GlobeNewswire

    First Northwest Bancorp Announces Board Member David T. Flodstrom’s Retirement

    Mr. Flodstrom notified the company of his intent to retire from both the Board of Directors of the Company and First Federal (collectively, the “Boards”) on June 19, 2020. Mr. Flodstrom has been a member of the Boards since 2002 and is a current member of the Company’s Compensation Committee as well as First Federal’s Compensation and Loan Committees.