Parent Company Only Financial Statements

Presented below are the condensed balance sheets, income statements and statements of cash flows for First Financial Northwest.

FIRST FINANCIAL NORTHWEST, INC.

Condensed Balance Sheets



	December 31,
	2019		2018
	(In thousands)
Assets
Cash and cash equivalents	$	235	$	140
Interest-bearing deposits	18,456		22,362
Investment in subsidiaries	136,907		130,209
Receivable from subsidiaries	990		1,207
Other assets	46		52
Total assets	$	156,634	$	153,970

Liabilities and Stockholders’ Equity
Liabilities:
Payable to subsidiaries	$	128	$	47
Deferred tax liability, net	2		2
Other liabilities	185		183
Total liabilities	315		232
Stockholders’ equity	156,319		153,738
Total liabilities and stockholders’ equity	$	156,634	$	153,970

FIRST FINANCIAL NORTHWEST, INC.

Condensed Income Statements



	Year Ended December 31,
	2019			2018
	(In thousands)
Operating income:
Interest income:
Interest-bearing deposits with banks	$	153		$	157
Total operating income	153			157
Operating expenses:
Other expenses	1,732			1,557
Total operating expenses	1,732			1,557
Loss before benefit for federal income taxes and equity in undistributed earnings of subsidiaries	(1,579		)	(1,400		)
Federal income tax benefit	(363		)	(311		)
Loss before equity in undistributed loss of subsidiaries	(1,216		)	(1,089		)
Equity in undistributed earnings of subsidiaries	11,585			15,988
Net income	$	10,369		$	14,899

FIRST FINANCIAL NORTHWEST, INC.

Condensed Statements of Cash Flows



	Year Ended December 31,
	2019			2018
	(In thousands)
Cash flows from operating activities:
Net income	$	10,369		$	14,899
Adjustments to reconcile net income to net cash from operating
activities:
Equity in undistributed earnings of subsidiaries	(11,585		)	(15,988		)
Dividends received from subsidiary	6,525			10,858
ESOP, stock options, and restricted stock compensation	19			28
Change in deferred tax liability, net	—			(7		)
Change in receivables from subsidiaries	(9		)	7
Change in payables to subsidiaries	81			(50		)
Change in other assets	6			(5		)
Changes in other liabilities	2			(47		)
Net cash provided by operating activities	5,408			9,695
Cash flows from investing activities:
Investments in subsidiaries	277			334
ESOP loan repayment	1,354			2,833
Net cash provided in investing activities	1,631			3,167
Cash flows from financing activities:
Proceeds from exercise of stock options	21			1,365
Proceeds for vested awards	106			206
Net share settlement of stock awards	(93		)	(40		)
Repurchase and retirement of common stock	(7,406		)	(3,153		)
Dividends paid	(3,478		)	(3,198		)
Net cash used by financing activities	(10,850		)	(4,820		)
Net increase (decrease) in cash	(3,811		)	8,042
Cash and cash equivalents at beginning of year	22,502			14,460
Cash and cash equivalents at end of year	$	18,691		$	22,502