FFNW News & Events

First Financial Northwest announced that its board of directors has declared an initial liquidating distribution pursuant to its previously announced plan of dissolution in the amount of $22.00 per share, or approximately $203M, representing approximately 95% of the anticipated proceeds to ultimately be distributed. The initial liquidating distribution will be payable on April 30, to shareholders of record as of April 23. The company also announced that it has closed its stock transfer books and has filed a Form 25 with the SEC with respect to delisting the company's common stock from trading on the Nasdaq Capital Market. The company expects to file Form 15 with the SEC on or about May 1 in order to suspend its periodic reporting obligations under the Securities Exchange Act of 1934. The company intends to make a final cash distribution to shareholders subject to first completing the wind down of the company and paying or providing for the company's creditors and existing and reasonably foreseeable debts, taxes, liabilities, and obligations in accordance with Washington law and the plan of dissolution. Funds remaining, if any, after paying taxes and expenses will result in a subsequent distribution to shareholders. At this time, the company estimates that total distributions to shareholders will potentially be in the $23.06 to $23.34 per share range.

Global Federal Credit Union and First Financial Northwest, jointly announced that Global received the required regulatory approval from the National Credit Union Administration for its acquisition of substantially all of the assets and assumption of substantially all of the liabilities of the bank, on the terms and subject to the conditions of the purchase and assumption agreement, dated as of January 10, by and among the company, the bank and global. The bank previously received and has maintained approvals from the Federal Deposit Insurance Corporation and Washington State Department of Financial Institutions. The asset sale is expected to be completed early in the second quarter of 2025, subject to the satisfaction or waiver of the remaining closing conditions set forth in the agreement. Global will operate the locations of the bank as a separately branded division of Global until the system and brand integration is completed later in 2025.

Global Federal Credit Union and First Financial Northwest, jointly announced that Global received the required regulatory approval from the National Credit Union Administration for its acquisition of substantially all of the assets and assumption of substantially all of the liabilities of the bank, on the terms and subject to the conditions of the purchase and assumption agreement, dated as of January 10, by and among the company, the bank and global. The bank previously received and has maintained approvals from the Federal Deposit Insurance Corporation and Washington State Department of Financial Institutions. The asset sale is expected to be completed early in the second quarter of 2025, subject to the satisfaction or waiver of the remaining closing conditions set forth in the agreement. Global will operate the locations of the bank as a separately branded division of Global until the system and brand integration is completed later in 2025.

Net loans receivable totaled $1.13 billion at September 30, 2024, down $8.9 million from the prior quarter end. Book value per share was $17.39 at September 30, 2024, compared to $17.51 at June 30, 2024, and $17.35 at September 30, 2023. The Bank's Tier 1 leverage and total capital ratios were 10.9% and 16.7% at September 30, 2024, compared to 10.9% and 16.6% at June 30, 2024, and 10.3% and 16.0% at September 30, 2023, respectively. Credit quality remained strong with nonaccrual loans totaling only $853,000, or 0.07% of total loans. A $1.6 million provision for credit losses was recorded in the current quarter, compared to a $200,000 recapture of provision for credit losses in the prior quarter and a $300,000 recapture of provision for credit losses in the comparable quarter in 2023. "While we recorded a provision for credit losses during the quarter ended September 30, 2024, our credit quality remained strong, with only $853,000 in nonaccrual loans relative to our $1.14 billion total loan portfolio. Our strong credit quality is directly related to our top-notch lending department employees who originate, document and underwrite these loans," stated Joseph Kiley III, President and CEO. "We also continue to work closely with Global Federal Credit Union to prepare for the closing of the pending transaction and to ensure a smooth transition for our customers and employees. I truly appreciate the efforts and patience of our employees, customers, and shareholders as we await the final required approval from the National Credit Union Administration before we can close the transaction."