Thu, Mar 20, 8:54 PM (38 days ago)
### **Summary of First Financial Northwest, Inc. (FFNW)** **Ticker:** FFNW **Financial Performance:** - **Revenue:** $1.42 billion in total assets, $1.14 billion in net loans, and $1.13 billion in deposits as of December 31, 2024. - **Net Income:** $1.1 million for the year ended December 31, 2024, compared to $6.3 million in 2023. - **Earnings Per Share (EPS):** $0.12 per diluted share in 2024, down from $0.69 in 2023. - **Net Interest Income:** $34.8 million in 2024, down from $40.5 million in 2023. - **Noninterest Income:** $2.8 million in 2024, slightly up from $2.7 million in 2023. - **Noninterest Expense:** $36.7 million in 2024, up from $35.7 million in 2023. **Strategic Overview:** - **Market Position:** Primarily serves King, Snohomish, Pierce, and Kitsap counties in Washington. - **Loan Portfolio:** Focus on commercial real estate, construction/land, one-to-four family residential, and multifamily lending. - **Deposit Activities:** Offers a range of deposit products, including noninterest-bearing accounts, interest-bearing demand accounts, money market accounts, savings accounts, and certificates of deposit. - **Investment Activities:** Holds mortgage-backed securities, municipal bonds, U.S. government agency obligations, and corporate bonds. **Future Outlook:** - **Pending Global Transaction:** A P&A Agreement with Global Federal Credit Union to acquire substantially all of the assets and assume substantially all of the liabilities of First Financial Northwest Bank. - **Regulatory Approvals:** Received necessary regulatory approvals from banking regulators and shareholders. - **Expected Closure:** Anticipated to close in the second quarter of 2025. **Risk Factors:** - **Credit Risk:** Exposure to construction/land loans, commercial real estate loans, and non-owner occupied real estate loans. - **Interest Rate Risk:** Sensitivity to changes in interest rates, which could affect net interest income and the value of securities. - **Liquidity Risk:** Dependence on customer deposits and borrowings from the FHLB to meet funding needs. - **Operational Risk:** Reliance on key personnel and the potential impact of cybersecurity threats. **Financial Condition:** - **Capital Ratios:** Meets all regulatory capital requirements, with a total capital to risk-weighted assets ratio of 16.65% and a Tier 1 capital to total assets ratio of 11.16% as of December 31, 2024. - **Liquidity:** Maintains sufficient liquidity to meet financial obligations, with available lines of credit and investment securities. **Market Position Changes:** - **Competitive Environment:** Faces competition from commercial banks, savings institutions, and credit unions in the same geographic area. - **Market Share:** Less than 1% of aggregate deposits in the market area. **Note:** The above summary provides a concise overview of the key financial and strategic information for First Financial Northwest, Inc. as of December 31, 2024. For a more detailed analysis, please refer to the full financial report.