 RENTON, Wash., July 28, 2020 GLOBE NEWSWIRE -- First Financial Northwest, Inc. the Company NASDAQ GS: FFNW, the holding company for First Financial Northwest Bank the Bank, today reported net income for the quarter ended June 30, 2020, of 2.1 million, or 0.22 per diluted share, compared to net income of 1.7 million, or 0.17 per diluted share, for the quarter ended March 31, 2020, and 3.3 million, or 0.33 per diluted share, for the quarter ended June 30, 2019. For the six months ended June 30, 2020, net income was 3.8 million, or 0.39 per diluted share, compared to net income of 5.2 million, or 0.52 per diluted share, for the comparable sixmonth period in 2019. As we all know, the first six months of 2020 have been quite different than we initially anticipated, said Joseph W. Kiley III, President and Chief Executive Officer. I am extremely proud that through it all the First Financial Northwest team has maintained its strength, integrity and passion. While we took necessary precautions to support our team with flexible work accommodations and to manage COVID19 health risks, we also demonstrated our high touch philosophy to meet the needs and expectations of our customers, communities, and shareholders. We delivered quality solutions by working with existing customers in a variety of ways and invited new customers to experience our superior service via the Paycheck Protection Program. In the three months ending on June 30, 2020, we had facilitated 455 PPP loans totaling 51.7 million, with the potential to support upwards of 5,000 jobs, continued Kiley.I am also very pleased with the progress being made to reduce our cost of funds and improve our deposit mix. During the quarter, our cost of funds declined to 1.34 compared to 1.69 in the previous quarter, with demand deposits increasing 72.0 million, continued Kiley. We also saw our net interest margin increase slightly even though we added over 50 million of lower-yielding PPP loans in the quarter.Kiley stated, As a result of economic concerns because of the COVID-19 pandemic, we again increased our allowance for loan loss risk factors for certain loan categories, which resulted in a provision for loan losses of 300,000 for the second quarter. Without the adjustment for COVID19 related economic factors, we would not have recorded a provision for loan losses in the quarter.While I am very positive about our geographical expansion strategy and our success to date, as well as the market opportunities offered with the two new offices planned for Gig Harbor in Pierce County and Issaquah in King County, we expect to slow the pace of expansion in the current environment, concluded Kiley.Highlights for the quarter ended June 30, 2020: Paycheck Protection Program PPP loans totaled 51.7 million. Net loans receivable increased 46.1 million to 1.14 billion at June 30, 2020, from 1.09 billion at March 31, 2020, and 85.6 million from 1.05 billion at June 30, 2019. Total deposits increased 12.6 to 1.13 billion as of June 30, 2020, from 1.00 billion at March 31, 2020, and 9.8 from 1.03 billion at June 30, 2019. The Bank received regulatory approval to open offices in Gig Harbor, Pierce County, Washington, and Issaquah, King County, Washington. The Companys book value per share was 15.32 at June 30, 2020, compared to 15.03 at March 31, 2020, and 14.83 at June 30, 2019. The Company repurchased 135,450 shares during the quarter at an average price of 9.42 per share under a stock repurchase plan that expired on July 27, 2020. The Companys Board of Directors authorized a new stock repurchase plan to repurchase up to 5 of its outstanding shares of common stock effective July 30, 2020, for a period of up to six months. The Company paid a regular quarterly cash dividend of 0.10 per share to shareholders. The Banks Tier 1 leverage and total capital ratios at June 30, 2020, were 10.0 and 15.0, respectively, compared to 10.3 and 14.7, respectively, at both March 31, 2020, and June 30, 2019. Based on managements evaluation of the adequacy of the Allowance for Loan and Lease Losses ALLL and taking into account the estimated future impact of the COVID-19 pandemic, the Bank recorded a 300,000 provision for loan losses during the quarter ended June 30, 2020.Total deposits at June 30, 2020, increased 126.2 million to 1.13 billion, from 1.00 billion at March 31, 2020, and was up 100.5 million from 1.03 billion at June 30, 2019. Demand deposits increased 72.0 million during the quarter, due in large part to deposits related to PPP loans funded during the quarter. The continued success of our deposit gathering efforts through our expanded branch network has allowed the Company to reduce its dependence on brokered deposits and FHLB advances as sources of funds.The following table presents a breakdown of our total deposits unaudited: Jun 30, 2020 Mar 31, 2020 Jun 30, 2019 Three Month Change One Year Change Deposits:Dollars in thousands Noninterest-bearing demand 91,593 53,519 49,219 38,074 42,374 Interest-bearing demand 102,707 68,803 50,414 33,904 52,293 Statement savings 18,946 17,040 22,593 1,906 3,647 Money market 429,987 397,489 310,587 32,498 119,400 Certificates of deposit, retail 1 450,487 437,676 412,134 12,811 38,353 Certificates of deposit, brokered 32,448 25,457 180,763 6,991 148,315 Total deposits 1,126,168 999,984 1,025,710 126,184 100,458 1 Balance of retail certificates of deposit for acquired branches are net of an aggregate fair value adjustment of 17,000 at June 30, 2020, 22,000 at March 31, 2020, and 41,000 at June 30, 2019.The following tables present an analysis of total deposits by branch office unaudited:June 30, 2020 Noninterest-bearing demand Interest-bearing demandStatement savings Money market Certificates of deposit, retailCertificates of deposit, brokered Total Dollars in thousands King County Renton 40,619 48,670 14,525 242,453 367,483 - 713,750 Landing 3,338 1,892 31 15,306 8,587 - 29,154 Woodinville 1 2,544 5,505 938 16,364 7,320 - 32,671 Bothell 2,927 2,793 33 5,650 3,268 - 14,671 Crossroads 7,435 6,516 158 51,674 11,756 - 77,539 Kent 2 7,144 5,883 1 12,424 1,065 - 26,517 Kirkland 2 5,748 6 - 1,068 - - 6,822 Total King County 69,755 71,265 15,686 344,939 399,479 - 901,124 Snohomish County Mill Creek 3,969 2,120 799 15,029 10,729 - 32,646 Edmonds 6,884 12,615 229 24,414 19,379 - 63,521 Clearview 1 4,999 5,953 868 15,278 4,859 - 31,957 Lake Stevens 1 2,985 6,788 618 13,794 4,213 - 28,398 Smokey Point 1 2,168 3,894 745 15,291 11,828 - 33,926 Total Snohomish County 21,005 31,370 3,259 83,806 51,008 - 190,448 Pierce County University Place 2 833 72 1 1,242 - - 2,148 Total Pierce County 833 72 1 1,242 - - 2,148 Total retail deposits 91,593 102,707 18,946 429,987 450,487 - 1,093,720 Brokered deposits - - - - - 32,448 32,448 Total deposits 91,593 102,707 18,946 429,987 450,487 32,448 1,126,168 1 Balance of retail certificates of deposit for acquired branches are net of an unamortized aggregate fair value adjustment of 17,000. 2 Kent office opened January 31, 2019; Kirkland, November 12, 2019; and University Place, March 2, 2020.March 31, 2020 Noninterest-bearing demand Interest-bearing demandStatement savings Money market Certificates of deposit, retailCertificates of deposit, brokered Total Dollars in thousands King County Renton 28,624 22,619 13,811 230,235 355,710 - 650,999 Landing 4,476 2,173 36 13,286 9,821 - 29,792 Woodinville 1 1,705 5,623 733 15,790 6,908 - 30,759 Bothell 556 886 20 6,221 3,297 - 10,980 Crossroads 4,894 10,197 5 47,714 11,689 - 74,499 Kent 2 472 2,961 - 10,736 1,061 - 15,230 Kirkland 2 253 11 - - - - 264 Total King County 40,980 44,470 14,605 323,982 388,486 - 812,523 Snohomish County Mill Creek 2,292 3,610 467 18,619 10,552 - 35,540 Edmonds 3,352 10,952 210 22,591 18,920 - 56,025 Clearview 1 3,627 4,596 753 13,288 4,775 - 27,039 Lake Stevens 1 2,024 2,446 468 7,142 4,240 - 16,320 Smokey Point 1 1,244 2,715 537 11,656 10,703 - 26,855 Total Snohomish County 12,539 24,319 2,435 73,296 49,190 - 161,779 Pierce County University Place 2 - 14 - 211 - - 225 Total Pierce County - 14 - 211 - - 225 Total retail deposits 53,519 68,803 17,040 397,489 437,676 - 974,527 Brokered deposits - - - - - 25,457 25,457 Total deposits 53,519 68,803 17,040 397,489 437,676 25,457 999,984 1 Balance of retail certificates of deposit for acquired branches are net of an unamortized aggregate fair value adjustment of 22,000. 2 Kent office opened January 31, 2019; Kirkland, November 12, 2019; and University Place, March 2, 2020.Net loans receivable increased to 1.14 billion at June 30, 2020, from 1.09 billion at March 31, 2020, and 1.05 billion at June 30, 2019. PPP loan originations of 51.7 million contributed to this quarterly increase. The average balance of net loans receivable totaled 1.12 billion for the quarter ended June 30, 2020, compared to 1.10 billion for the quarter ended March 31, 2020, and 1.05 billion for the quarter ended June 30, 2019. 