First Financial Northwest ( (FFNW) ) has released its Q4 earnings. Here is a breakdown of the information First Financial Northwest presented to its investors.
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First Financial Northwest, Inc. is a Washington State-chartered commercial bank headquartered in Renton, Washington, providing banking services across the Puget Sound Region through its network of 15 full-service banking offices.
The company’s latest earnings report shows a net income of $1.2 million for the fourth quarter of 2024, translating to $0.13 per diluted share, a significant recovery from the prior quarter’s net loss. However, for the entire year, net income was reported at $1.1 million, a notable decrease from the $6.3 million achieved in 2023.
Key financial highlights for the quarter include a $1.3 million recapture of provision for credit losses, contributing to the improved quarterly earnings. This improvement was primarily due to the successful resolution of issues related to two participation loans. The bank’s credit quality remains robust, with nonaccrual loans representing a mere 0.07% of the total loan portfolio. However, a decrease in deposits and interest income compared to the previous year reflects ongoing challenges.
The company is actively preparing for the anticipated sale of the bank to Global Federal Credit Union, pending regulatory approval. This strategic move is expected to reshape the bank’s future operations.
Looking forward, First Financial Northwest’s management remains focused on maintaining credit quality and optimizing its financial position ahead of the upcoming acquisition, while navigating the challenges posed by the current economic environment.