November 2023
Joseph W. Kiley III, President & CEO
Richard P. Jacobson, EVP, CFO & COO
NASDAQ:FFNW
Forward Looking Statement
This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements, include, but are not limited to, the following: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth caused by increasing political instability from acts of war including Russia's invasion of Ukraine, as well as increasing prices and supply chain disruptions, and any governmental or societal responses to new COVID-19 variants; the uncertain impacts of quantitative tightening and current and future monetary policies of the Federal Reserve; increased competitive pressures; changes in the interest rate environment; legislative and regulatory changes; and other factors described in First Financial Northwest's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the Securities and Exchange Commission that are available on our website at www.ffnwb.comand on the SEC's website at www.sec.gov.
First Financial Northwest does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
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Senior Management Team
Nearly 35 Years Average Experience
Years with | Years in | ||
Name | Title | FFNWB | Industry |
Joseph W. Kiley III | President, Chief Executive Officer | 11 | 34 |
Richard P. Jacobson | EVP, Chief Financial Officer and | 10 | 38 |
Chief Operating Officer | |||
Ronnie J. Clariza | SVP, Chief Risk Officer (FFNWB) | 20 | 23 |
Dalen D. Harrison | SVP, Chief Banking Officer (FFNWB) | 10 | 43 |
Simon Soh | SVP, Chief Credit Officer (FFNWB) | 13 | 36 |
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Company Highlights
Holding Company: First Financial Northwest, Inc.
- IPO October 2007
- Nasdaq Global Select Market: FFNW
- All-timehigh: $21.81 (6/8/18) | All-time low: $3.24 (11/30/10)
- Closing stock price: $11.00 (11/2/2023)
Community Bank: First Financial Northwest Bank
- Organized in 1923 as a state savings and loan association
- Converted to a Washington State chartered mutual savings bank in 1992
- Formed a mutual holding company in 2002
- Converted to a Washington State-chartered commercial bank in 2016
Market Area: Headquartered in Renton, Washington
- Western Washington along I-5 & I-405 corridors (outside Seattle)
- Primary focus on King, Snohomish and Pierce counties
NASDAQ:FFNW 4
Key Financial Ratios
Maintaining strong capital levels and excellent asset quality
Quarter Ended | |||||||
Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||
2023 | 2023 | 2023 | 2022 | 2022 | |||
Performance Ratios (1) | |||||||
Return on assets | 0.39% | 0.39% | 0.57% | 0.86% | 1.06% | ||
Return on equity | 3.71 | 3.74 | 5.31 | 8.04 | 9.88 | ||
Equity-to-total assets | 10.44 | 10.39 | 10.14 | 10.67 | 10.64 | ||
Net interest margin | 2.69 | 2.84 | 3.22 | 3.52 | 3.65 | ||
Efficiency ratio | 84.49 | 86.95 | 75.44 | 65.84 | 66.80 | ||
Noninterest expense/average total assets | 2.29 | 2.50 | 2.42 | 2.30 | 2.43 | ||
Capital Ratios (2) | |||||||
Tier 1 leverage ratio | 10.25% | 10.02% | 10.24% | 10.31% | 10.43% | ||
Total capital ratio | 16.00 | 15.75 | 15.59 | 15.62 | 15.49 | ||
Asset Quality Ratios | |||||||
Nonperforming assets/total assets | 0.01% | 0.01% | 0.01% | 0.01% | 0.02% | ||
ACL as a percent of total loans | 1.29 | 1.31 | 1.33 | 1.29 | 1.27 | ||
Yields and Costs (1) | |||||||
Yield on loans | 5.73% | 5.71% | 5.56% | 5.19% | 4.77% | ||
Cost of funds | 2.97 | 2.76 | 2.23 | 1.48 | 0.84 | ||
- Calculated on an annualized basis.
- First Financial Northwest Bank only.
NASDAQ:FFNW 5
Consolidated Results
Quarter Ended | ||||||||||
Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||
2023 | 2023 | 2023 | 2022 | 2022 | ||||||
(Dollars in thousands, except per share data) | ||||||||||
Net interest income | $ | 9,703 | $ | 10,309 | $ | 11,256 | $ | 12,468 | $ | 12,717 |
Provision (recapture of provision) for credit | ||||||||||
losses | (300) | (247) | 338 | 500 | (400) | |||||
Net interest income after provision | ||||||||||
(recapture of) for loan losses | 10,003 | 10,556 | 10,917 | 11,968 | 13,117 | |||||
Total noninterest income | 677 | 798 | 665 | 695 | 778 | |||||
Total noninterest expense | 8,770 | 9,504 | 8,955 | 8,666 | 9,014 | |||||
Income before federal income tax provision | 1,910 | 1,850 | 2,628 | 3,997 | 4,881 | |||||
Federal income tax provision | 409 | 362 | 506 | 771 | 935 | |||||
Net income | $ | 1,501 | $ | 1,488 | $ | 2,122 | $ | 3,226 | $ | 3,946 |
Total assets | $ | 1,525,568 | $ | 1,528,079 | $ | 1,574,271 | $ | 1,502,916 | $ | 1,484,311 |
Book value per common share | $17.35 | $17.35 | $17.45 | $17.57 | $17.30 | |||||
Tangible book value per common share (1) | 17.20 | 17.20 | 17.30 | 17.41 | 17.14 | |||||
(1) Tangible book value per share is a non-GAAP financial measure. Refer to the Appendix: Non-GAAP Financial Measures for a reconciliation to the nearest GAAP equivalent.
NASDAQ:FFNW 6
Regional Economy
Company | Square Feet Occupied (1) |
29.65 million
22.09 million
13.05 million
2.54 million
2.28 million
2.16 million
1.89 million
1.80 million
1.44 million
Largest Office Occupiers
in the Seattle Metro Area
as of July 2023
*Includes office, industrial, flex and retail spaces, if any
Source: Office Occupiers, Puget Sound Business Journal, August 11, 2023
NASDAQ:FFNW 7
Local Economy
"Renton's going to happen"
- Puget Sound Business Journal, February 18, 2022
Sounders FC to build a state-of-the-art training facility and office at the former Boeing commercial airplanes headquarters; slated to open in January 2024. Seattle selected to host a 2026 World Cup match
Seattle-based Unico Properties is also planning around 3,000 units of multifamily housing on the property named for Longacres, the horse racing track previously located there from 1932 until the early 1990s
8,185 residential units planned or in development across Renton
Joining the Seattle Seahawks whose 200,000 square-foot waterfront headquarters and practice facility opened in Renton in 2008
UW Medicine leased a long-vacant, 197,000 square-foot former FAA building in Renton to house its Department of Laboratory Medicine and Pathology in June 2022
Blue Origin is reported to have leased nearly 100,000 square feet of office in a Lind Avenue Southwest building
Vulcan Real Estate on track to begin building a 385-unit apartment project on
- long-heldproperty in the Kennydale neighborhood in June 2023
Bay West Development plans a 1,179-unit,three-building multifamily community with nearly 50,000 square feet of retail and commercial space at the former Fry's Electronics location over three phases beginning in 2024. If all three phases are realized, the project would be the largest mixed-use residential development in Renton history.
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Market Area
Smokey Point
Lake Stevens
Mill Creek
Clearview
Woodinville
Gig Harbor
Puget Sound Region of Western Washington along I-5 & I-405 corridors (outside Seattle)
Primary focus on King, Snohomish, Pierce and, to a lesser extent, Kitsap counties
Suburban Strategy -
Surround Seattle and
Bellevue Proper
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Office Experience
Cost-Efficient,
Technology-Centered
Branch Concept
NASDAQ:FFNW 10
Attachments
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Disclaimer
First Financial Northwest Inc. published this content on 06 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 November 2023 21:35:22 UTC.