PORT ANGELES First Federal has reported big gains in profit in the first quarter since its conversion from a mutual, or depositor-owned, savings and loan to a shareholder-owned bank.
Excluding a post-tax $8.3 million expense associated with setting up the new First Federal Community Foundation, First Northwest Bancorp, First Fed’s holding company, reported that net income for the quarter that ended March 31 was $731,000, a 59.3 percent increase over the $459,000 earned in the same quarter last year, according to a quarterly operating report released this week.
Net income was $2.5 million for the nine months through March 31, a 23.3 percent increase over net income of $2.0 million for the same period last year.
“Earnings increased due in part to the larger balance sheet created from the capital raise and the continued improvements in the quality of our loans,” Larry Hueth, First Federal’s president and CEO, told the Peninsula Daily News.
The bank’s total assets from its investments and loans increased $12.6 million, or 1.4 percent, from $924.2 million between December 31, 2014, and March 31, and over nine months it increased $141.5 million, or 17.8 percent, climbing from $795.3 million at June 30, 2014, to $936.8 million on March 31.
Loans “remained virtually unchanged, decreasing $358,000 during the quarter from $493.5 million at December 31, 2014, or 0.1 percent, and decreased $3.0 million, or 0.6 percent, from $496.2 million at June 30, 2014, to $493.2 million at March 31,” the holding company’s quarterly report said.
The full quarterly report is online at http://tinyurl.com/pdnfirstfed.
Stock price up
First Fed stock has gone up.
The conversion was approved by depositors Jan.
Known officially as First Federal Savings and Loan Association of Port Angeles, First Federal’s conversion followed a national trend in which mutuals have switched to stock ownership to raise millions in new capital.
Depositors in January also approved the creation of the First Federal Community Foundation, a 501(c)(3) that will give money to various groups within the communities the bank serves.
The foundation continues the bank’s long tradition of financial support for nonprofits and community projects.
The three-member board of the foundation is made up of Stephen E. She plans to begin operations in a few weeks.
The new charitable foundation was funded with $400,000 in cash and $9.3 million in stock for a pre-tax total of $9.7 million.
“As a result of this contribution,” the bank’s operating report said, “the company reported a net loss of $7.6 million, or $(0.58) per share, for the quarter ended March 31, 2015, and a net loss of $5.8 million, or $(0.45) per share, for the nine months ended March 31, 2015.
“The contribution to the foundation, on a net tax basis of $8.3 million, contributed $(0.64) to the net loss per share for the quarter and nine months ended March 31, 2015.”
Said Hueth in the quarterly report:
“We are pleased to report our first quarterly results as a public company.
