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First Financial Northwest Inc. (FFNW-0.22%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements showing a decrease in total assets to $1.42 billion from $1.51 billion at the end of the previous year. This decline was primarily due to decreases in investments available-for-sale and net loans receivable.
Net loans receivable decreased by $35.7 million to $1.14 billion, with declines in business, multifamily, and one-to-four family loans, partially offset by increases in construction/land and consumer loans.
The company reported net income of $1.1 million for the year, down from $6.3 million in the previous year. This decrease was attributed to a $5.8 million decline in net interest income and a lower recapture of the provision for credit losses.
Interest income decreased slightly, while interest expense increased significantly due to higher rates on deposits and borrowings. The net interest margin decreased to 2.54% from 2.82% in the previous year.
Noninterest income remained relatively stable, with minor changes in BOLI income, wealth management revenue, and deposit-related fees.
Noninterest expense increased by $1.0 million, primarily due to higher professional fees related to the pending transaction with Global Federal Credit Union and increased data processing expenses.
The company's allowance for credit losses was $15.1 million, representing 1.30% of total loans. The company recorded a $50,000 recapture of provision for credit losses due to updates in economic forecasts and changes in loan portfolio characteristics.
Total deposits decreased by $62.7 million to $1.13 billion, with a significant reduction in brokered deposits and a shift towards higher-costing retail certificates of deposit.
First Financial Northwest's capital ratios remained strong, with the bank categorized as 'well capitalized' under regulatory guidelines. The company continues to focus on managing interest rate risk and maintaining liquidity to meet its financial obligations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the First Financial Northwest Inc. annual 10-K report dated March 20, 2025. To report an error, please email earnings@qz.com.