The Company also announced that its Board of Directors declared a regular quarterly cash dividend of
“First Northwest Bancorp produced record results for the fourth quarter and the year, with strong top line revenue growth, double digit loan and deposit growth and an improving net interest margin,” stated
The sectors most heavily impacted by the pandemic include hospitality; restaurant and food services; and lessors of commercial real estate to these businesses. At
“We participated in the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) beginning in April and ending in August, 2020, assisting approximately 515 customers who received
“We were also successful participating in the Federal Reserve’s Main Street Lending Program,” said Deines. “As of year-end, we assisted approximately 20 customers receive
Under the Main Street Lending Program, the
“In addition to the SBA’s PPP and the Federal Reserve’s Main Street Lending Program, we implemented additional programs to support our customers experiencing financial hardship as a result of the pandemic. These assistances included payment forbearance agreements with some customers for periods of up to six months. We deferred payment on 357 loans totaling
The table below presents selected information on loans that remained on COVID-19 deferrals at the periods indicated.
% of Total Loan Portfolio | Deferred Loan Balance | Number of Loans | |||||
(In thousands) | |||||||
12.9 | % | $ | 128,420 | 297 | |||
13.9 | 149,542 | 183 | |||||
0.2 | 2,349 | 19 | |||||
Fourth Quarter 2020 Highlights (at or for the quarter ended
- Fourth quarter net income increased to
$3.8 million , compared to$3.7 million in the preceding quarter and$2.2 million in the year ago quarter. - Diluted earnings per share was
$0.41 , up from$0.40 per share in the preceding quarter and$0.23 per share compared to the fourth quarter a year ago. - Provision for loan losses was
$930,000 in the fourth quarter, compared to$1.4 million in the third quarter of 2020 and$249,000 in the fourth quarter of 2019. - Loans receivable increased 7.6% to
$1.14 billion atDecember 31, 2020 , compared to$1.06 billion atSeptember 30, 2020 , and increased 30.0% compared to$878.4 million a year ago, primarily due to growth in commercial real estate and commercial business loans, including PPP loans. - Deposits increased 6.3% during the quarter and increased 33.1% from one year prior, to
$1.33 billion atDecember 31, 2020 , due to successful organic and wholesale deposit-gathering strategies, including significant growth in noninterest-bearing deposits, which increased 71.4 % in 2020. - The cost of deposits for the fourth quarter decreased to 0.33% from 0.45% for third quarter 2020 and 0.77% in the fourth quarter of 2019.
- Gain on sale of mortgage loans was
$2.3 million for the fourth quarter compared to$1.7 million in the previous quarter and$247,000 in the fourth quarter of 2019 reflecting strong quarterly mortgage originations, including refinance activity. - During the fourth quarter, the Company repurchased 15,553 shares of common stock at an average price of
$15.67 per share for a total of$244,000 , leaving 1,007,867 shares remaining under the 2020 Stock Repurchase Plan approved inOctober 2020 .
Balance Sheet Review
Total assets increased
Investment securities decreased
“We continue to utilize the investment portfolio for liquidity and interest income generation,” said
Securities consisted of the following at the dates indicated:
2020 | 2020 | 2019 | Three Month Change | One Year Change | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Available for Sale at Fair Value | ||||||||||||||||||||
Municipal bonds | $ | 127,862 | $ | 97,143 | $ | 39,282 | $ | 30,719 | $ | 88,580 | ||||||||||
63,820 | 73,618 | 28,858 | (9,798 | ) | 34,962 | |||||||||||||||
Corporate issued asset-backed securities (ABS corporate) | 29,280 | 32,747 | 40,855 | (3,467 | ) | (11,575 | ) | |||||||||||||
Corporate issued debt securities (Corporate debt) | 35,510 | 33,230 | 9,643 | 2,280 | 25,867 | |||||||||||||||
18,564 | 23,864 | 28,459 | (5,300 | ) | (9,895 | ) | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
62,683 | 92,402 | 160,167 | (29,719 | ) | (97,484 | ) | ||||||||||||||
Corporate issued mortgage-backed securities (MBS corporate) | 26,577 | 16,107 | 8,316 | 10,470 | 18,261 | |||||||||||||||
Total securities available for sale | $ | 364,296 | $ | 369,111 | $ | 315,580 | $ | (4,815 | ) | $ | 48,716 | |||||||||
Total loans, excluding loans held for sale, increased
The Company originated
Loans receivable consisted of the following at the dates indicated:
2020 | 2020 | 2019 | Three Month Change | One Year Change | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Real Estate: | ||||||||||||||||||||
One to four family | $ | 309,828 | $ | 317,755 | $ | 306,014 | $ | (7,927 | ) | $ | 3,814 | |||||||||
Multi-family | 162,467 | 127,569 | 96,098 | 34,898 | 66,369 | |||||||||||||||
Commercial real estate | 296,574 | 283,390 | 255,722 | 13,184 | 40,852 | |||||||||||||||
Construction and land | 123,627 | 75,204 | 37,187 | 48,423 | 86,440 | |||||||||||||||
Total real estate loans | 892,496 | 803,918 | 695,021 | 88,578 | 197,475 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity | 33,103 | 34,120 | 35,046 | (1,017 | ) | (1,943 | ) | |||||||||||||
Auto and other consumer | 128,233 | 111,782 | 112,119 | 16,451 | 16,114 | |||||||||||||||
Total consumer loans | 161,336 | 145,902 | 147,165 | 15,434 | 14,171 | |||||||||||||||
Commercial business | 100,201 | 123,036 | 41,571 | (22,835 | ) | 58,630 | ||||||||||||||
Total loans | 1,154,033 | 1,072,856 | 883,757 | 81,177 | 270,276 | |||||||||||||||
Less: | ||||||||||||||||||||
Net deferred loan fees | 4,346 | 2,628 | 206 | 1,718 | 4,140 | |||||||||||||||
Premium on purchased loans, net | (6,129 | ) | (4,196 | ) | (4,514 | ) | (1,933 | ) | (1,615 | ) | ||||||||||
Allowance for loan losses | 13,847 | 13,007 | 9,628 | 840 | 4,219 | |||||||||||||||
Total loans receivable, net | $ | 1,141,969 | $ | 1,061,417 | $ | 878,437 | $ | 80,552 | $ | 263,532 | ||||||||||
The Company continues 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
Industry | % of Total Loan Portfolio | Loan Balance | Number of Loans | Average Loan- to-Value | ||||||
(In thousands) | ||||||||||
Hospitality | 4.4 | % | $ | 49,181 | 15 | 61.4 | % | |||
Restaurant and food services | 0.2 | 1,915 | 6 | 64.9 | ||||||
Lessors of commercial real estate to hospitality, restaurant, and retail establishments | 4.4 | 48,894 | 27 | 51.02 | ||||||
Total deposits increased
“Deposit balances remain at record levels, as consumers continue to build cash reserves,” said Bullard. “We are strategically increasing non-interest bearing and other core deposits to manage overall funding costs and interest rate risk. We held
Deposits consisted of the following at the dates indicated:
2020 | 2020 | 2019 | Three Month Change | One Year Change | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Savings | $ | 164,434 | $ | 171,905 | $ | 168,983 | $ | (7,471 | ) | $ | (4,549 | ) | ||||||||
Transaction accounts | 431,171 | 390,867 | 276,496 | 40,304 | 154,675 | |||||||||||||||
Money market accounts | 429,143 | 398,144 | 248,086 | 30,999 | 181,057 | |||||||||||||||
Certificates of deposit | 308,769 | 293,540 | 308,080 | 15,229 | 689 | |||||||||||||||
Total deposits | $ | 1,333,517 | $ | 1,254,456 | $ | 1,001,645 | $ | 79,061 | $ | 331,872 | ||||||||||
Total shareholders' equity increased to
Operating Results
In the fourth quarter of 2020, the Company generated a return on average assets ("ROAA") of 0.97%, and a return on average equity ("ROAE") of 8.32%, compared to 0.99% and 8.22%, respectively, in the third quarter of 2020, and 0.71% and 4.99%, respectively, in the fourth quarter a year ago.
Total interest income increased to
Net interest income, before provision for loan losses, increased 7.8% during the quarter to
The net interest margin expanded 10 basis point to 3.46% for the fourth quarter of 2020, compared to 3.36% for the third quarter of 2020, and increased 32 basis points compared to 3.14% for the fourth quarter in 2019. “Our improved earning asset mix as well as our lower cost of funds had a positive impact on our net interest margin again this quarter,” said Bullard. For the year 2020, the net interest margin was 3.27% compared to 3.20% in 2019.
The yield on earning assets decreased 1 basis point to 3.81% for the fourth quarter of 2020, compared to 3.82% for the third quarter of 2020, and decreased from 4.03% for the fourth quarter in 2019. The decrease was due to lower yields on the investment portfolio and loans, which was offset by higher average loan balances. The yield on the loan portfolio decreased to 4.41% for the fourth quarter 2020, from 4.45% for the third quarter 2020, and decreased from 4.50% for the fourth quarter of 2019. The cost of interest-bearing liabilities decreased 13 basis points to 0.47% for the fourth quarter of 2020 compared to 0.60% for the third quarter of 2020 and decreased 70 basis points from 1.17% for the fourth quarter in 2019. “Over the past year we have been actively working on changing the mix of our funding profile and lowering our cost of deposits. We anticipate moderate additional cost save improvements in our certificate of deposit portfolio,” said Bullard.
Noninterest income decreased 3.0% to
Noninterest expense totaled
Capital Ratios and Credit Quality
Capital 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
Nonperforming loans decreased to
About the Company
First Northwest is a bank holding company which primarily engages in the business activity of its subsidiary, First Federal. First Federal is a community-oriented financial institution serving
FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited) | ||||||||||||||||||||
2020 | 2020 | 2019 | Three Month Change | One Year Change | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 13,508 | $ | 16,776 | $ | 13,519 | -19.5 | % | -0.1 | % | ||||||||||
Interest-bearing deposits in banks | 51,647 | 35,303 | 35,220 | 46.3 | 46.6 | |||||||||||||||
Investment securities available for sale, at fair value | 364,296 | 369,111 | 315,580 | -1.3 | 15.4 | |||||||||||||||
Loans held for sale | 3,753 | 4,754 | 503 | -21.1 | 646.1 | |||||||||||||||
Loans receivable (net of allowance for loan losses of | 1,141,969 | 1,061,417 | 878,437 | 7.6 | 30.0 | |||||||||||||||
5,977 | 5,944 | 6,034 | 0.6 | -0.9 | ||||||||||||||||
Accrued interest receivable | 6,966 | 7,367 | 3,931 | -5.4 | 77.2 | |||||||||||||||
Premises and equipment, net | 14,785 | 14,737 | 14,342 | 0.3 | 3.1 | |||||||||||||||
Mortgage servicing rights, net | 2,120 | 1,545 | 871 | 37.2 | 143.4 | |||||||||||||||
Bank-owned life insurance, net | 38,353 | 38,104 | 30,027 | 0.7 | 27.7 | |||||||||||||||
Prepaid expenses and other assets | 10,975 | 9,612 | 8,872 | 14.2 | 23.7 | |||||||||||||||
Total assets | $ | 1,654,349 | $ | 1,564,670 | $ | 1,307,336 | 5.7 | % | 26.5 | % | ||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||
Deposits | $ | 1,333,517 | $ | 1,254,456 | $ | 1,001,645 | 6.3 | % | 33.1 | % | ||||||||||
Borrowings | 109,977 | 109,150 | 112,930 | 0.8 | -2.6 | |||||||||||||||
Accrued interest payable | 53 | 51 | 373 | 3.9 | -85.8 | |||||||||||||||
Accrued expenses and other liabilities | 23,303 | 18,359 | 14,392 | 26.9 | 61.9 | |||||||||||||||
Advances from borrowers for taxes and insurance | 1,116 | 1,986 | 1,145 | -43.8 | -2.5 | |||||||||||||||
Total liabilities | 1,467,966 | 1,384,002 | 1,130,485 | 6.1 | 29.9 | |||||||||||||||
Shareholders' Equity | ||||||||||||||||||||
Preferred stock, | — | — | — | n/a | n/a | |||||||||||||||
Common stock, | 102 | 102 | 107 | 0.0 | -4.7 | |||||||||||||||
Additional paid-in capital | 97,412 | 97,229 | 102,017 | 0.2 | -4.5 | |||||||||||||||
Retained earnings | 92,657 | 89,546 | 86,156 | 3.5 | 7.5 | |||||||||||||||
Accumulated other comprehensive loss, net of tax | 5,442 | 3,186 | (1,539 | ) | 70.8 | 453.6 | ||||||||||||||
Unearned employee stock ownership plan (ESOP) shares | (9,230 | ) | (9,395 | ) | (9,890 | ) | 1.8 | 6.7 | ||||||||||||
Total shareholders' equity | 186,383 | 180,668 | 176,851 | 3.2 | 5.4 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,654,349 | $ | 1,564,670 | $ | 1,307,336 | 5.7 | % | 26.5 | % | ||||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
2020 | 2020 | 2019 | Three Month Change | One Year Change | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Interest and fees on loans receivable | $ | 11,894 | $ | 11,097 | $ | 9,505 | 7.2 | % | 25.1 | % | ||||||||||
Interest on mortgage-backed and related securities | 437 | 565 | 1,070 | -22.7 | -59.2 | |||||||||||||||
Interest on investment securities | 1,581 | 1,603 | 1,065 | -1.4 | 48.5 | |||||||||||||||
Interest on deposits in banks | 9 | 9 | 54 | 0.0 | -83.3 | |||||||||||||||
FHLB dividends | 56 | 97 | 64 | -42.3 | -12.5 | |||||||||||||||
Total interest income | 13,977 | 13,371 | 11,758 | 4.5 | 18.9 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 1,079 | 1,405 | 2,171 | -23.2 | -50.3 | |||||||||||||||
Borrowings | 221 | 205 | 427 | 7.8 | -48.2 | |||||||||||||||
Total interest expense | 1,300 | 1,610 | 2,598 | -19.3 | -50.0 | |||||||||||||||
Net interest income | 12,677 | 11,761 | 9,160 | 7.8 | 38.4 | |||||||||||||||
PROVISION FOR LOAN LOSSES | 930 | 1,350 | 249 | -31.1 | 273.5 | |||||||||||||||
Net interest income after provision for loan losses | 11,747 | 10,411 | 8,911 | 12.8 | 31.8 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Loan and deposit service fees | 940 | 868 | 994 | 8.3 | -5.4 | |||||||||||||||
Mortgage servicing fees, net of amortization | 146 | 148 | 33 | -1.4 | 342.4 | |||||||||||||||
Net gain on sale of loans | 2,324 | 1,725 | 247 | 34.7 | 840.9 | |||||||||||||||
Net gain on sale of investment securities | 912 | 969 | 779 | -5.9 | 17.1 | |||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 249 | 622 | 273 | -60.0 | -8.8 | |||||||||||||||
Other income | 67 | 449 | 97 | -85.1 | -30.9 | |||||||||||||||
Total noninterest income | 4,638 | 4,781 | 2,423 | -3.0 | 91.4 | |||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Compensation and benefits | 7,193 | 6,070 | 4,902 | 18.5 | 46.7 | |||||||||||||||
Data processing | 691 | 640 | 645 | 8.0 | 7.1 | |||||||||||||||
Occupancy and equipment | 1,663 | 1,367 | 1,233 | 21.7 | 34.9 | |||||||||||||||
Supplies, postage, and telephone | 236 | 254 | 205 | -7.1 | 15.1 | |||||||||||||||
Regulatory assessments and state taxes | 271 | 262 | 210 | 3.4 | 29.0 | |||||||||||||||
Advertising | 572 | 285 | 512 | 100.7 | 11.7 | |||||||||||||||
Professional fees | 408 | 361 | 214 | 13.0 | 90.7 | |||||||||||||||
89 | 86 | — | 3.5 | 100.0 | ||||||||||||||||
FHLB prepayment penalty | — | — | — | n/a | n/a | |||||||||||||||
Other | 596 | 756 | 700 | -21.2 | -14.9 | |||||||||||||||
Total noninterest expense | 11,719 | 10,081 | 8,621 | 16.2 | 35.9 | |||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 4,666 | 5,111 | 2,713 | -8.7 | 72.0 | |||||||||||||||
PROVISION FOR INCOME TAXES | 850 | 1,436 | 495 | -40.8 | 71.7 | |||||||||||||||
NET INCOME | $ | 3,816 | $ | 3,675 | $ | 2,218 | 3.8 | % | 72.0 | % | ||||||||||
Basic and diluted earnings per common share | $ | 0.41 | $ | 0.40 | $ | 0.23 | 2.5 | % | 78.3 | % | ||||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||
Year Ended | Percent | |||||||||||
2020 | 2019 | Change | ||||||||||
INTEREST INCOME | ||||||||||||
Interest and fees on loans receivable | $ | 43,063 | $ | 40,166 | 7.2 | % | ||||||
Interest on mortgage-backed and related securities | 2,701 | 4,606 | -41.4 | |||||||||
Interest on investment securities | 5,569 | 3,965 | 40.5 | |||||||||
Interest on deposits in banks | 94 | 244 | -61.5 | |||||||||
FHLB dividends | 255 | 332 | -23.2 | |||||||||
Total interest income | 51,682 | 49,313 | 4.8 | |||||||||
INTEREST EXPENSE | ||||||||||||
Deposits | 6,663 | 8,304 | -19.8 | |||||||||
Borrowings | 1,061 | 3,144 | -66.3 | |||||||||
Total interest expense | 7,724 | 11,448 | -32.5 | |||||||||
Net interest income | 43,958 | 37,865 | 16.1 | |||||||||
PROVISION FOR LOAN LOSSES | 5,046 | 669 | 654.3 | |||||||||
Net interest income after provision for loan losses | 38,912 | 37,196 | 4.6 | |||||||||
NONINTEREST INCOME | ||||||||||||
Loan and deposit service fees | 3,454 | 3,893 | -11.3 | |||||||||
Mortgage servicing fees, net of amortization | 137 | 176 | -22.2 | |||||||||
Net gain on sale of loans | 6,433 | 1,077 | 497.3 | |||||||||
Net gain on sale of investment securities | 3,147 | 836 | 276.4 | |||||||||
Increase in cash surrender value of bank-owned life insurance | 1,826 | 708 | 157.9 | |||||||||
Other income | 849 | 322 | 163.7 | |||||||||
Total noninterest income | 15,846 | 7,012 | 126.0 | |||||||||
NONINTEREST EXPENSE | ||||||||||||
Compensation and benefits | 24,590 | 18,999 | 29.4 | |||||||||
Data processing | 2,790 | 2,623 | 6.4 | |||||||||
Occupancy and equipment | 5,726 | 4,642 | 23.4 | |||||||||
Supplies, postage, and telephone | 985 | 883 | 11.6 | |||||||||
Regulatory assessments and state taxes | 930 | 783 | 18.8 | |||||||||
Advertising | 1,506 | 1,081 | 39.3 | |||||||||
Professional fees | 1,523 | 1,121 | 35.9 | |||||||||
245 | 82 | 198.8 | ||||||||||
FHLB prepayment penalty | 210 | 344 | -39.0 | |||||||||
Other | 2,959 | 2,559 | 15.6 | |||||||||
Total noninterest expense | 41,464 | 33,117 | 25.2 | |||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 13,294 | 11,091 | 19.9 | |||||||||
PROVISION FOR INCOME TAXES | 2,954 | 2,077 | 42.2 | |||||||||
NET INCOME | $ | 10,340 | $ | 9,014 | 14.7 | % | ||||||
Basic earnings per common share | $ | 1.11 | $ | 0.92 | 20.7 | % | ||||||
Diluted earnings per common share | $ | 1.10 | $ | 0.91 | 20.9 | % | ||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY Selected Financial Ratios and Other Data (Unaudited) | ||||||||||||||||||||
As of or For the Quarter Ended | ||||||||||||||||||||
2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||||||
Performance ratios: (1) | ||||||||||||||||||||
Return on average assets | 0.97 | % | 0.99 | % | 0.56 | % | 0.27 | % | 0.71 | % | ||||||||||
Return on average equity | 8.32 | 8.22 | 4.60 | 1.94 | 4.99 | |||||||||||||||
Average interest rate spread | 3.35 | 3.22 | 2.90 | 2.86 | 2.86 | |||||||||||||||
Net interest margin (2) | 3.46 | 3.36 | 3.10 | 3.11 | 3.14 | |||||||||||||||
Efficiency ratio (3) | 67.7 | 60.9 | 72.3 | 80.0 | 74.4 | |||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 131.7 | 130.9 | 129.5 | 130.1 | 131.8 | |||||||||||||||
Book value per common share | $ | 18.20 | $ | 17.65 | $ | 17.07 | $ | 16.02 | $ | 16.48 | ||||||||||
Asset quality ratios: | ||||||||||||||||||||
Nonperforming assets to total assets at end of period (4) | 0.1 | % | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | ||||||||||
Nonperforming loans to total loans (5) | 0.2 | 0.3 | 0.3 | 0.2 | 0.2 | |||||||||||||||
Allowance for loan losses to nonperforming loans (5) | 609.2 | 419.9 | 360.8 | 622.4 | 536.1 | |||||||||||||||
Allowance for loan losses to total loans | 1.2 | 1.2 | 1.2 | 1.2 | 1.1 | |||||||||||||||
Net charge-offs to average outstanding loans | — | — | — | — | — | |||||||||||||||
Capital ratios (First Federal): | ||||||||||||||||||||
Tier 1 leverage | 10.3 | % | 10.5 | % | 10.9 | % | 11.8 | % | 12.2 | % | ||||||||||
Common equity Tier 1 capital | 13.4 | 14.7 | 15.1 | 16.8 | 17.5 | |||||||||||||||
Tier 1 risk-based | 13.4 | 14.7 | 15.1 | 16.8 | 17.5 | |||||||||||||||
Total risk-based | 14.6 | 16.0 | 16.4 | 18.1 | 18.7 | |||||||||||||||
Other Information: | ||||||||||||||||||||
Average total assets | $ | 1,567,521 | $ | 1,488,723 | $ | 1,401,500 | $ | 1,287,529 | $ | 1,242,780 | ||||||||||
Average interest-earning assets | 1,466,103 | 1,401,090 | 1,305,437 | 1,208,314 | 1,167,805 | |||||||||||||||
Average total loans | 1,089,505 | 1,009,210 | 938,646 | 876,135 | 849,741 | |||||||||||||||
Average equity | 183,424 | 178,887 | 172,009 | 179,614 | 177,759 | |||||||||||||||
Average deposits | 1,277,632 | 1,227,656 | 1,133,665 | 1,008,410 | 985,788 | |||||||||||||||
(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 Year Ended | ||||||||
2020 | 2019 | |||||||
Performance ratios: (1) | ||||||||
Return on average assets | 0.72 | % | 0.72 | % | ||||
Return on average equity | 5.79 | 5.13 | ||||||
Average interest rate spread | 3.09 | 2.91 | ||||||
Net interest margin (2) | 3.27 | 3.20 | ||||||
Efficiency ratio (3) | 69.3 | 73.8 | ||||||
Average interest-earning assets to average interest-bearing liabilities | 130.6 | 129.8 | ||||||
Book value per common share | $ | 18.20 | $ | 16.48 | ||||
Asset quality ratios: | ||||||||
Nonperforming assets to total assets at end of period (4) | 0.1 | % | 0.2 | % | ||||
Nonperforming loans to total loans (5) | 0.2 | 0.2 | ||||||
Allowance for loan losses to nonperforming loans (5) | 609.2 | 536.1 | ||||||
Allowance for loan losses to total loans | 1.2 | 1.1 | ||||||
Net charge-offs to average outstanding loans | 0.1 | 0.1 | ||||||
Capital ratios (First Federal): | ||||||||
Tier 1 leverage | 10.3 | % | 12.2 | % | ||||
Common equity Tier 1 capital | 13.4 | 17.5 | ||||||
Tier 1 risk-based | 13.4 | 17.5 | ||||||
Total risk-based | 14.6 | 18.7 | ||||||
Other Information: | ||||||||
Average total assets | $ | 1,436,895 | $ | 1,255,581 | ||||
Average interest-earning assets | 1,345,770 | 1,181,923 | ||||||
Average total loans | 978,799 | 870,696 | ||||||
Average equity | 178,498 | 175,578 | ||||||
Average deposits | 1,162,323 | 957,557 | ||||||
(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. |
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