{"id":518247,"date":"2021-07-27T09:18:19","date_gmt":"2021-07-27T13:18:19","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/first-financial-northwest-inc-reports-second-quarter-net-income-of-3-8-million-or-0-40-per-diluted-share\/"},"modified":"2021-07-27T09:18:19","modified_gmt":"2021-07-27T13:18:19","slug":"first-financial-northwest-inc-reports-second-quarter-net-income-of-3-8-million-or-0-40-per-diluted-share","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/first-financial-northwest-inc-reports-second-quarter-net-income-of-3-8-million-or-0-40-per-diluted-share\/","title":{"rendered":"First Financial Northwest, Inc. Reports Second Quarter Net Income of $3.8 Million or $0.40 per Diluted Share"},"content":{"rendered":"
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RENTON, Wash., July 27, 2021 (GLOBE NEWSWIRE) — First Financial Northwest, Inc. (the \u201cCompany\u201d) (NASDAQ GS: FFNW), the holding company for First Financial Northwest Bank (the \u201cBank\u201d), today reported net income for the quarter ended June\u00a030, 2021, of $3.8\u00a0million, or $0.40 per diluted share, compared to net income of $2.5\u00a0million, or $0.26 per diluted share, for the quarter ended March\u00a031, 2021, and $2.1\u00a0million, or $0.22 per diluted share, for the quarter ended June\u00a030, 2020. For the six months ended June\u00a030, 2021, net income was $6.3\u00a0million, or $0.66\u00a0per diluted share, compared to net income of $3.8\u00a0million, or $0.39 per diluted share, for the comparable six-month period in 2020.<\/p>\n

\u201cI am pleased to report that we have no nonperforming loans and no loans over 30 days delinquent at June 30, 2021. During the quarter, a $2.0 million nonperforming loan paid off and our credit team continues to work diligently to maintain our excellent credit quality,\u201d stated Joseph W. Kiley III, President and CEO. \u201cIn addition, we saw a further reduction in our cost of funds, with the average cost of deposits decreasing to 0.68% in the quarter ended June\u00a030, 2021, compared to 0.85% in the quarter ended March 31, 2021, and 1.38% in the quarter ended June 30, 2020,\u201d continued Kiley. \u201cIf market interest rates remain low, we expect this decline to continue as we have approximately $172.1 million in certificates of deposit maturing in the next 12 months and an additional $84.5 million of certificates of deposit maturing in the subsequent 12 months, all at a weighted average rate of 1.46%,\u201d continued Kiley.<\/p>\n

\u201cAs a result of our quarterly analysis of our loan portfolio, we downgraded to special mention $6.5\u00a0million of loans where we are a participating lender. These loans are secured by medical rehabilitation facilities and we expect improvement as elective medical procedures are currently being undertaken that were not available during the pandemic. In addition, we further downgraded $10.5 million in loans made to a single lending relationship to substandard. These substandard loans were analyzed for impairment and the analysis showed that no losses are anticipated from these loans. We also upgraded loans totaling $2.9 million in the quarter. As a result, we recorded a recapture of provision for loan losses of $700,000 during the quarter, compared to a provision for loan losses of $300,000 in the quarter ended March\u00a031, 2021,\u201d concluded Kiley.<\/p>\n

Highlights for the quarter ended June\u00a030, 2021:<\/p>\n