2024 Fourth Quarter Financial Highlights:
- Total assets were $186.9 million at year end.
- Net interest income of $1.00 million for the fourth quarter.
- Net interest margin of 2.30% for the fourth quarter and 2.36% for the year.
- Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million a year ago, with non-interest bearing demand deposits representing 25% of total deposits.
- Net loans were $141.6 million at December 31, 2024, compared to $142.8 million a year ago.
- Asset quality remains pristine.
- Tangible book value per share increased to $7.80 at year end, compared to $7.58 a year ago.
POULSBO, Wash., Feb. 19, 2025 (GLOBE NEWSWIRE) — Liberty Northwest Bancorp, Inc. LBNW (the “Company”) and its wholly-owned subsidiary Liberty Bank today announced a net loss of $43 thousand for the fourth quarter ended December 31, 2024. This compared to net income of $25 thousand for the third quarter ended September 30, 2024, and $1 thousand for the fourth quarter ended December 31, 2023. For the twelve months ended December 31, 2024, net income was $3 thousand, compared to $35 thousand the same period in 2023.
Total assets were $186.9 million as of December 31, 2024, compared to $184.7 million at December 31, 2023. Net loans totaled $141.6 million as of December 31, 2024, a 1% increase compared to $140.0 million at September 30, 2024, and a 1% decrease compared to $142.8 million a year ago. Loan demand was muted during the quarter largely due to the elevated interest rate environment.
Asset quality remained pristine during the fourth quarter. The allowance for credit losses totaled $1.16 million as of December 31, 2024, and was 0.81% of total loans outstanding. The Company recorded net loan recoveries of $31 thousand during the quarter. The Company has one non-performing loan of $235 thousand as of December 31, 2024.
Due to strong credit quality metrics and muted loan growth, the Company recorded a $40 thousand reversal to its provision for credit losses in the fourth quarter of 2024. This compared to a $95 thousand reversal to its provision for credit losses in the third quarter of 2024 and a $60 thousand reversal to its provision for credit losses in the fourth quarter of 2023.
Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million at December 31, 2023, and decreased modestly compared to $146.4 million three months earlier. Non-interest bearing demand accounts represented 25%, interest bearing demand represented 30%, money market and savings accounts comprised 18%, and certificates of deposit made up 27% of the total deposit portfolio at December 31, 2024.
“The vibrant Pacific Northwest markets that we operate in continue to fuel our deposit base and loan pipeline,” said Rick Darrow, Liberty Northwest Bancorp, Inc. President and Chief Executive Officer. “During the fourth quarter, loan growth moderated, as we remain selective with the loans we are putting on the balance sheet. As we look to 2025, we anticipate an increase in growth opportunities, especially if interest rates continue to stabilize.
“The challenging interest rate environment continues to impact net interest income growth with higher interest expense on deposits and borrowings, which affected our operating performance for the fourth quarter of 2024,” said Darrow. Net interest income, before the provision for loan losses, was $1.00 million for the fourth quarter of 2024, compared to $1.07 million in the fourth quarter of 2023. For the year, net interest income was $4.11 million, compared to $4.44 million for 2023.
“While our yields on earning assets remained stable during the quarter, they were more than offset by the increase in cost of funds, resulting in net interest margin compression during the quarter,” said Darrow. The Company’s net interest margin was 2.30% for the fourth quarter of 2024, compared to 2.37% for the preceding quarter, and 2.48% for the fourth quarter of 2023. For the full year 2024, the net interest margin was 2.36%, compared to 2.59% for 2023.
Total non-interest income increased 6% to $82 thousand for the fourth quarter of 2024, compared to $78 thousand for the fourth quarter a year ago. For the year, non-interest income was $308 thousand, compared to $449 thousand for 2023. The decrease in 2024 compared to the prior year was primarily due to higher referral fee income earned in 2023.
Total noninterest expense was $1.18 million for the fourth quarter of 2024, a decrease of $43 thousand, or 3%, from the fourth quarter a year ago. Compensation and benefits costs decreased by $55 thousand, or 8%, over the year ago quarter, while occupancy costs decreased by $51 thousand, or 34% from the same quarter a year ago. For the year, total noninterest expense decreased $275 thousand, or 6%, to $4.68 million, over 2023.
“We remain focused on enhancing revenue generation and driving cost efficiencies to improve our operational effectiveness,” said Darrow. “Our operating performance is expected to continue to improve, as we improve our margin, while keeping operating expenses in line. We are well positioned for continued growth in our core business operations and remain focused on creating value for all of our customers, employees and shareholders.”
Capital ratios continue to exceed regulatory requirements, with a total risk-based capital ratio at 15.81% at December 31, 2024, substantially above well-capitalized regulatory requirements. The tangible book value per share was $7.80 at year end, compared to $7.58 a year earlier.
Near the end of the second quarter of 2024, the Company completed the issuance of $1.2 million of Preferred Stock. Under the terms of the transaction, the Preferred Stock will convert to Common Stock within a 2 year time period.
“We are deploying the proceeds from this offering to further strengthen our capital position and to support continued loan growth in our vibrant Pacific Northwest markets,” said Darrow.
About Liberty Northwest Bancorp, Inc.
Liberty Northwest Bancorp, Inc. is the bank holding company for Liberty Bank, a commercial bank chartered in the State of Washington. The Bank began operations June 11, 2009, and operates a full-service branch in Poulsbo, WA. The Bank provides loan and deposit services to predominantly small and middle-sized businesses and individuals in and around Kitsap and King counties. The Bank is subject to regulation by the State of Washington Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). For more information, please visit www.libertybanknw.com. Liberty Northwest Bancorp, Inc. LBNW, qualified to trade on the OTCQX® Best Market in June 2022. For information related to the trading of LBNW, please visit www.otcmarkets.com.
For further discussion, please contact:
Rick Darrow, Chief Executive Officer | 360-394-4750
Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Liberty Northwest Bancorp, Inc.’s projections, estimates, plans and expectations of future results and can be identified by words such as “believe,” “intend,” “estimate,” “likely,” “anticipate,” “expect,” “looking forward,” and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve’s actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Liberty Northwest Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.
| STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| Quarter Ended Dec 31, 2024 | Quarter Ended Sept 30, 2024 | Three Month Change | Quarter Ended Dec 31, 2023 | Quarter over Quarter – One Year Change | Year to Date Dec 31, 2024 | Year to Date Dec 30, 2023 | One Year Change | |||||||||||||||||||||||
| Interest Income | ||||||||||||||||||||||||||||||
| Loans | $ | 1,932 | $ | 1,994 | -3 | % | $ | 1,890 | 2 | % | $ | 7,807 | $ | 7,173 | 9 | % | ||||||||||||||
| Interest bearing deposits in banks | 142 | 83 | 70 | % | 101 | 41 | % | 365 | 323 | 13 | % | |||||||||||||||||||
| Securities | 108 | 114 | -5 | % | 140 | -23 | % | 461 | 483 | -5 | % | |||||||||||||||||||
| Total interest income | 2,182 | 2,192 | -0 | % | 2,112 | 3 | % | 8,632 | 7,979 | 8 | % | |||||||||||||||||||
| Interest Expense | ||||||||||||||||||||||||||||||
| Deposits | 928 | 903 | 3 | % | 656 | 41 | % | 3,298 | 2,141 | 54 | % | |||||||||||||||||||
| Other Borrowings | 252 | 283 | -11 | % | 384 | -34 | % | 1,226 | 1,396 | -12 | % | |||||||||||||||||||
| Total interest expense | 1,179 | 1,186 | -1 | % | 1,040 | 13 | % | 4,524 | 3,537 | 28 | % | |||||||||||||||||||
| Net Interest Income | 1,003 | 1,005 | -0 | % | 1,072 | -7 | % | 4,109 | 4,442 | -8 | % | |||||||||||||||||||
| Provision for Loan Losses | (40 | ) | (95 | ) | -58 | % | (60 | ) | -33 | % | (265 | ) | (105 | ) | 152 | % | ||||||||||||||
| Net interest income after provision for loan losses | 1,043 | 1,100 | -5 | % | 1,132 | -8 | % | 4,374 | 4,547 | -4 | % | |||||||||||||||||||
| Non-Interest Income | ||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 28 | 28 | -0 | % | 17 | 61 | % | 104 | 67 | 55 | % | |||||||||||||||||||
| Other non-interest income | 55 | 46 | 19 | % | 61 | -10 | % | 204 | 382 | -47 | % | |||||||||||||||||||
| Total non-interest income | 82 | 74 | 12 | % | 78 | 6 | % | 308 | 449 | -31 | % | |||||||||||||||||||
| Non-Interest Expense | ||||||||||||||||||||||||||||||
| Salaries and employee benefits | 650 | 668 | -3 | % | 705 | -8 | % | 2,596 | 2,854 | -9 | % | |||||||||||||||||||
| Occupancy and equipment expenses | 100 | 88 | 14 | % | 151 | -34 | % | 429 | 595 | -28 | % | |||||||||||||||||||
| Other operating expenses | 429 | 387 | 11 | % | 367 | 17 | % | 1,652 | 1,503 | 10 | % | |||||||||||||||||||
| Total non-interest expenses | 1,180 | 1,143 | 3 | % | 1,223 | -3 | % | 4,677 | 4,952 | -6 | % | |||||||||||||||||||
| Net Income Before Income Tax | (55 | ) | 31 | -275 | % | 2 | -3027 | % | 4 | 44 | -90 | % | ||||||||||||||||||
| Provision for Income Tax | (12 | ) | 7 | -275 | % | 0 | -3027 | % | 1 | 9 | -90 | % | ||||||||||||||||||
| Net Income | (43 | ) | $ | 25 | -275 | % | $ | 1 | -3027 | % | $ | 3 | $ | 35 | -90 | % | ||||||||||||||
| BALANCE SHEETS (Unaudited) | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | Three Month Change | Dec 31, 2023 | One Year Change | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from Banks | $ | 1,655 | $ | 2,408 | -31 | % | $ | 1,817 | -9 | % | |||||||||
| Interest bearing deposits in banks | 14,341 | 11,262 | 27 | % | 7,896 | 82 | % | ||||||||||||
| Securities | 20,586 | 21,225 | -3 | % | 23,034 | -11 | % | ||||||||||||
| Loans | 142,720 | 141,206 | 1 | % | 143,913 | -1 | % | ||||||||||||
| Allowance for loan losses | (1,158 | ) | (1,167 | ) | -1 | % | (1,150 | ) | 1 | % | |||||||||
| Net Loans | 141,561 | 140,038 | 1 | % | 142,763 | -1 | % | ||||||||||||
| Premises and fixed assets | 6,101 | 6,161 | -1 | % | 6,418 | -5 | % | ||||||||||||
| Accrued Interest receivable | 681 | 668 | 2 | % | 765 | -11 | % | ||||||||||||
| Intangible assets | 11 | 19 | -43 | % | 39 | -72 | % | ||||||||||||
| Other assets | 1,949 | 2,262 | 21 | % | 1,992 | -2 | % | ||||||||||||
| Total Assets | $ | 186,884 | $ | 183,678 | 2 | % | $ | 184,724 | 1 | % | |||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Demand, non-interest bearing | $ | 35,845 | $ | 39,669 | -10 | % | $ | 42,803 | -16 | % | |||||||||
| Interest Bearing Demand | 44,149 | 40,764 | 8 | % | 23,528 | 88 | % | ||||||||||||
| Money Market and Savings | 26,495 | 27,419 | -3 | % | 26,667 | -1 | % | ||||||||||||
| Certificates of Deposit | 39,345 | 38,507 | 2 | % | 49,200 | -20 | % | ||||||||||||
| Total Deposits | 145,833 | 146,359 | -0 | % | 142,198 | 3 | % | ||||||||||||
| Total Borrowing | 26,461 | 22,454 | 18 | % | 29,430 | -10 | % | ||||||||||||
| Accrued interest payable | 173 | 238 | -27 | % | 335 | -48 | % | ||||||||||||
| Other liabilities | 286 | 704 | 133 | % | 214 | 34 | % | ||||||||||||
| Total Liabilities | 172,753 | 169,756 | 2 | % | 172,177 | 0 | % | ||||||||||||
| Shareholders’ Equity | |||||||||||||||||||
| Preferred Stock | 1,242 | 1,242 | 0 | % | *** | ||||||||||||||
| Common Stock | 1,656 | 1,650 | 0 | % | 1,650 | 0 | % | ||||||||||||
| Additional paid in capital | 13,149 | 13,138 | 0 | % | 13,108 | 0 | % | ||||||||||||
| Retained Earnings | (1,490 | ) | (1,447 | ) | -3 | % | (1,493 | ) | 0 | % | |||||||||
| Other Comprehensive Income | (426 | ) | (661 | ) | 36 | % | (718 | ) | 41 | % | |||||||||
| Total Shareholders’ Equity | 14,131 | 13,922 | 1 | % | 12,547 | 13 | % | ||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 186,884 | $ | 183,678 | 2 | % | $ | 184,724 | 1 | % | |||||||||
| Quarter Ended Dec 31, 2024 | Quarter Ended Sept 30, 2024 | Quarter Ended Dec 31, 2023 | YTD 2024 | YTD 2023 | |||||||||||||||||||
| Financial Ratios | |||||||||||||||||||||||
| Return on Average Assets | -0.09 | % | 0.06 | % | 0.00 | % | 0.00 | % | 0.02 | % | |||||||||||||
| Return on Average Equity | -1.23 | % | 0.70 | % | 0.03 | % | 0.03 | % | 0.28 | % | |||||||||||||
| Efficiency Ratio | 108.7 | % | 105.9 | % | 106.4 | % | 105.9 | % | 101.2 | % | |||||||||||||
| Net Interest Margin | 2.30 | % | 2.37 | % | 2.48 | % | 2.36 | % | 2.59 | % | |||||||||||||
| Loan to Deposits | 97.9 | % | 96.5 | % | 101.2 | % | |||||||||||||||||
| Tangible Book Value per Share | $ | 7.80 | $ | 7.67 | $ | 7.58 | |||||||||||||||||
| Book Value per Share | $ | 7.81 | $ | 7.68 | $ | 7.60 | |||||||||||||||||
| Earnings per Share | $ | (0.03 | ) | $ | 0.01 | $ | – | $ | 0.03 | $ | 0.02 | ||||||||||||
| Asset Quality | |||||||||||||||||||||||
| Net Loan Charge-offs (recoveries) | $ | (31 | ) | $ | 4 | $ | – | ||||||||||||||||
| Nonperforming Loans | $ | 235 | $ | 235 | $ | – | |||||||||||||||||
| Nonperforming Assets to Total Assets | 0.13 | % | 0.13 | % | 0.00 | % | |||||||||||||||||
| Allowance for Loan Losses to Total Loans | 0.81 | % | 0.83 | % | 0.80 | % | |||||||||||||||||
| Other Real Estate Owned | – | – | – | ||||||||||||||||||||
| CAPITAL (Bank only) | |||||||||||||||||||||||
| Tier 1 leverage ratio | 9.98 | % | 10.23 | % | 9.56 | % | |||||||||||||||||
| Tier 1 risk-based capital ratio | 14.87 | % | 15.00 | % | 14.16 | % | |||||||||||||||||
| Total risk based capital ratio | 15.81 | % | 15.97 | % | 15.09 | % | |||||||||||||||||
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