First Northwest Bancorp (FNWB) has reported a 66.62 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1.19 million, or $0.11 a share in the quarter, compared with $0.71 million, or $0.06 a share for the same period last year.
Revenue during the quarter went down marginally by 0.59 percent to $8.59 million from $8.64 million in the previous year period. Net interest income for the quarter rose 13.43 percent over the prior year period to $7.67 million. Non-interest income for the quarter fell 29.23 percent over the last year period to $1.33 million.
Net interest margin improved 14 basis points to 3.12 percent in the quarter from 2.98 percent in the last year period. Efficiency ratio for the quarter improved to 76.50 percent from 88.90 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Commenting on the quarter, Larry Hueth, president and chief executive officer of the Company, said, "We are pleased with the improvement in earnings for the quarter and year over year. Net interest income increased 4.3% from the prior quarter and 13.4% over the same quarter in 2015. We are also pleased that net interest income increased sufficiently to cover expenses related to the provision for loan losses and stock awards in the current quarter that were not present in the same quarter in 2015. Earnings improvement is a result of solid loan and deposit growth, a result of our expansion efforts into new markets as well as continued growth in our historic markets. Business and consumer relationships continue to grow in both Kitsap and Whatcom counties, and we are pleased to announce that we opened our home lending center (HLC) in Seattle, Washington in November 2016. We expect the HLC will help us increase our originations of mortgage loans and assist in our goal of reducing our dependency on purchased loan pools."
Liabilities outpace assets growth
Total assets stood at $1,043.82 million as on Dec. 31, 2016, up 8.98 percent compared with $957.80 million on Dec. 31, 2015. On the other hand, total liabilities stood at $866.92 million as on Dec. 31, 2016, up 12.82 percent from $768.43 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $690.42 million as on Dec. 31, 2016, up 30.97 percent compared with $527.14 million on Dec. 31, 2015. Deposits stood at $794.07 million as on Dec. 31, 2016, up 15.91 percent compared with $685.09 million on Dec. 31, 2015.
Investments stood at $276.06 million as on Dec. 31, 2016, down 24.16 percent or $87.94 million from year-ago. Shareholders equity stood at $176.89 million as on Dec. 31, 2016, down 6.59 percent or $12.48 million from year-ago.
Return on average assets moved up 16 basis points to 0.46 percent in the quarter from 0.30 percent in the last year period. At the same time, return on average equity increased 112 basis points to 2.61 percent in the quarter from 1.49 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 0.20 percent in the quarter, down from 0.30 percent in the last year period.
Equity to assets ratio was 16.90 percent for the quarter, down from 19.80 percent for the previous year quarter. Average equity to average assets ratio was 17.40 percent for the quarter, down from 20 percent for the previous year quarter.
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