2022 Fourth Quarter and Full Year Financial Highlights:
- Net income was
$136 thousand , or$0.08 per share, in the fourth quarter of 2022, with net interest income of$1.35 million . - Net income for the year was
$526 thousand , with net interest income of$5.56 million . - Total assets increased 10.2% year-over-year to
$193.0 million . - Total loans decreased 0.9% in the fourth quarter and increased 21.2% from the prior year.
- Net interest margin of 3.11% for the fourth quarter and 3.18% for the year.
- Nonperforming assets to total assets improved to 0.34%.
In the fourth quarter of 2022, the Company generated a return on common shareholders' equity of 4.41% and a return on assets of 0.30%, compared to 6.02% and 0.40%, respectively, in the immediate prior quarter. For the year 2022, return on common shareholders' equity was 4.36%, and return on assets was 0.29%, compared to 1.77% and 0.212%, respectively, in 2021.
“Our fourth quarterly results were a strong end to what was a monumental year on several measures,” said
“Earlier this month, we held the grand opening of our new headquarters in Poulsbo,” Darrow continued. “The banking center is in a desirable location in downtown
The Company’s net interest margin was 3.11% for the fourth quarter of 2022, compared to 3.35% for the preceding quarter, and 3.37% for the fourth quarter of 2021. “Higher yields on earning assets during the quarter were more than offset by the increase in deposit costs, resulting in net interest margin compression during the quarter,” said Darrow. For the year, the net interest margin was 3.18%, compared to 3.48% for 2021.
Total assets increased 10.2% to
“Like other financial institutions, we experienced a decrease in deposit balances during the quarter, as deposit pricing pressures persist and customers are seeking higher yields,” said Darrow. Total deposits decreased 6.3% to
At
Total non-interest income was
Total noninterest expense was
Capital ratios continue to exceed regulatory requirements, with total risk-based capital substantially above well-capitalized regulatory requirements. The tangible book value per share was
About Liberty Northwest Bancorp, Inc.
Forfurtherdiscussion,pleasecontactthefollowing:
Rick Darrow, Chief Executive Officer | 360-394-4750
Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe
STATEMENTS OF INCOME (Unaudited) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Quarter Ended | Quarter Ended | Three Month Change | Quarter Ended | One Year Change | |||||||||||||||
Interest Income | |||||||||||||||||||
Loans | $ | 1,708 | $ | 1,568 | 9 | % | $ | 1,561 | 9 | % | |||||||||
Interest bearing deposits in banks | 19 | 22 | -13 | % | 8 | 148 | % | ||||||||||||
Securities | 103 | 102 | 1 | % | 84 | 23 | % | ||||||||||||
Total interest income | 1,830 | 1,692 | 8 | % | 1,653 | 11 | % | ||||||||||||
Interest Expense | |||||||||||||||||||
Deposits | 239 | 104 | 128 | % | 60 | 300 | % | ||||||||||||
Other Borrowings | 242 | 104 | 134 | % | 121 | 100 | % | ||||||||||||
Total interest expense | 481 | 208 | 131 | % | 181 | 166 | % | ||||||||||||
Net Interest Income | 1,349 | 1,483 | -9 | % | 1,473 | -8 | % | ||||||||||||
Provision for Loan Losses | 40 | 60 | -33 | % | 315 | -87 | % | ||||||||||||
Net interest income after provision for loan losses | 1,309 | 1,423 | -8 | % | 1,158 | 13 | % | ||||||||||||
Non-Interest Income | |||||||||||||||||||
Service charges on deposit accounts | 15 | 15 | -1 | % | 14 | 4 | % | ||||||||||||
Other non-interest income | 30 | 28 | 6 | % | 64 | -53 | % | ||||||||||||
Total non-interest income | 45 | 43 | 4 | % | 78 | -43 | % | ||||||||||||
Non-Interest Expense | |||||||||||||||||||
Salaries and employee benefits | 634 | 694 | -9 | % | 906 | -30 | % | ||||||||||||
Occupancy and equipment expenses | 152 | 142 | 7 | % | 136 | 12 | % | ||||||||||||
Other operating expenses | 383 | 391 | -2 | % | 364 | 5 | % | ||||||||||||
Total non-interest expenses | 1,169 | 1,227 | -5 | % | 1,406 | -17 | % | ||||||||||||
Net Income Before Income Tax | 185 | 239 | -23 | % | (170 | ) | -208 | % | |||||||||||
Provision for Income Tax | (49 | ) | (52 | ) | -7 | % | 35 | -241 | % | ||||||||||
Net Income | $ | 136 | $ | 187 | -27 | % | (135 | ) | -200 | % | |||||||||
STATEMENTS OF INCOME (Unaudited) | |||||||||||||
(Dollars in thousands) | |||||||||||||
Year to Date | Year to Date | One Year Change | |||||||||||
Interest Income | |||||||||||||
Loans | $ | 6,129 | $ | 6,422 | -5 | % | |||||||
Interest bearing deposits in banks | 68 | 27 | 149 | % | |||||||||
Securities | 386 | 229 | 69 | % | |||||||||
Total interest income | 6,583 | 6,678 | -1 | % | |||||||||
Interest Expense | |||||||||||||
Deposits | 477 | 201 | 138 | % | |||||||||
Other Borrowings | 547 | 386 | 42 | % | |||||||||
Total interest expense | 1,024 | 587 | 75 | % | |||||||||
Net Interest Income | 5,559 | 6,091 | -9 | % | |||||||||
Provision for Loan Losses | 190 | 400 | -53 | % | |||||||||
Net interest income after provision for loan losses | 5,369 | 5,691 | -6 | % | |||||||||
Non-Interest Income | |||||||||||||
Service charges on deposit accounts | 54 | 45 | 19 | % | |||||||||
Other non-interest income | 139 | 269 | -48 | % | |||||||||
Total non-interest income | 193 | 314 | -39 | % | |||||||||
Non-Interest Expense | |||||||||||||
Salaries and employee benefits | 2,773 | 3,693 | -25 | % | |||||||||
Occupancy and equipment expenses | 585 | 600 | -3 | % | |||||||||
Other operating expenses | 1,528 | 1,437 | 6 | % | |||||||||
Total non-interest expenses | 4,886 | 5,730 | -15 | % | |||||||||
Net Income Before Income Tax | 682 | 279 | 144 | % | |||||||||
Provision for Income Tax | (156 | ) | (59 | ) | 161 | % | |||||||
Net Income | $ | 526 | $ | 220 | 139 | % | |||||||
BALANCE SHEETS (Unaudited) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
| | Three Month Change | One Year Change | ||||||||||||||||
Assets | |||||||||||||||||||
Cash and due from Banks | $ | 2,844 | $ | 2,982 | -5 | % | $ | 2,969 | -4 | % | |||||||||
Interest bearing deposits in banks | 11,480 | 4,470 | 157 | % | 22,644 | -49 | % | ||||||||||||
Securities | 23,682 | 23,620 | 0 | % | 25,809 | -8 | % | ||||||||||||
Loans | 146,185 | 147,497 | -1 | % | 120,647 | 21 | % | ||||||||||||
Allowance for loan losses | (1,235 | ) | (1,190 | ) | 4 | % | (1,525 | ) | -19 | % | |||||||||
Net Loans | 144,950 | 146,307 | -1 | % | 119,121 | 22 | % | ||||||||||||
Premises and fixed assets | 6,769 | 6,370 | 6 | % | 2,825 | 140 | % | ||||||||||||
Accrued Interest receivable | 699 | 630 | 11 | % | 507 | 38 | % | ||||||||||||
Intangible assets | 65 | 72 | -9 | % | 93 | -30 | % | ||||||||||||
Other assets | 2,527 | 1,704 | 48 | % | 1,142 | 121 | % | ||||||||||||
Total Assets | $ | 193,016 | $ | 186,154 | 4 | % | $ | 175,111 | 10 | % | |||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||
Deposits | |||||||||||||||||||
Demand, non-interest bearing | $ | 46,152 | $ | 50,162 | -8 | % | $ | 51,481 | -10 | % | |||||||||
Interest Bearing Demand | 23,892 | 37,940 | -37 | % | 39,378 | -39 | % | ||||||||||||
Money Market and Savings | 40,438 | 56,909 | -29 | % | 51,522 | -22 | % | ||||||||||||
Certificates of Deposit | 31,286 | 11,302 | 177 | % | 8,860 | 253 | % | ||||||||||||
Total Deposits | 141,768 | 156,313 | -9 | % | 151,241 | -6 | % | ||||||||||||
Total Borrowing | 38,149 | 17,392 | 119 | % | 10,956 | 248 | % | ||||||||||||
Accrued interest payable | 165 | 3 | 5738 | % | 73 | 126 | % | ||||||||||||
Other liabilities | 606 | 343 | 78 | % | 410 | 48 | % | ||||||||||||
Total Liabilities | 180,690 | 174,048 | 4 | % | 162,679 | 11 | % | ||||||||||||
Shareholders' Equity | |||||||||||||||||||
Common Stock | 1,633 | 1,633 | 0 | % | 1,626 | 0 | % | ||||||||||||
Additional paid in capital | 13,019 | 13,008 | 0 | % | 12,984 | 0 | % | ||||||||||||
Retained Earnings | (1,541 | ) | (1,676 | ) | (2,067 | ) | |||||||||||||
Other Comprehensive Income | (785 | ) | (859 | ) | -9 | % | (111 | ) | 608 | % | |||||||||
Total Shareholders' Equity | 12,326 | 12,106 | 2 | % | 12,432 | -1 | % | ||||||||||||
Total Liabilities and Shareholders' Equity | $ | 193,016 | $ | 186,154 | 4 | % | $ | 175,111 | 10 | % |
Quarter Ended | Quarter Ended | Quarter Ended | YTD 2022 | YTD 2021 | ||||||||||||||||
Financial Ratios | ||||||||||||||||||||
Return on Average Assets | 0.30 | % | 0.40 | % | -0.30 | % | 0.29 | % | 0.12 | % | ||||||||||
Return on Average Equity | 4.41 | % | 6.02 | % | -4.33 | % | 4.36 | % | 1.77 | % | ||||||||||
Efficiency Ratio | 83.9 | % | 80.4 | % | 90.7 | % | 85.0 | % | 89.5 | % | ||||||||||
Net Interest Margin | 3.11 | % | 3.35 | % | 3.37 | % | 3.18 | % | 3.48 | % | ||||||||||
Loan to Deposits | 102.2 | % | 93.6 | % | 79.8 | % | ||||||||||||||
Tangible Book Value per Share | 7.51 | 7.40 | 7.59 | |||||||||||||||||
Book Value per Share | 7.55 | 7.44 | 7.65 | |||||||||||||||||
Earnings per Share | 0.08 | 0.11 | (0.08 | ) | 0.32 | 0.14 | ||||||||||||||
Asset Quality | ||||||||||||||||||||
Net Loan Charge-offs (recoveries) | $ | - | $ | 485 | - | |||||||||||||||
Nonperforming Loans | $ | 659 | $ | 670 | $ | 1,185 | ||||||||||||||
Nonperforming Assets to Total Assets | 0.34 | % | 0.36 | % | 0.68 | % | ||||||||||||||
Allowance for Loan Losses to Total Loans | 0.85 | % | 0.81 | % | 1.26 | % | ||||||||||||||
Other Real Estate Owned | $ | - | $ | - | - | |||||||||||||||
CAPITAL (Bank only) | ||||||||||||||||||||
Tier 1 leverage ratio | 9.37 | % | 9.08 | % | 9.08 | % | ||||||||||||||
Tier 1 risk-based capital ratio | 13.64 | % | 13.46 | % | 14.45 | % | ||||||||||||||
Total risk based capital ratio | 14.63 | % | 14.42 | % | 15.70 | % | ||||||||||||||
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